Full text of Commercial and Financial Chronicle : January 23, 1947, Vol. 165, No. 4562, Section 1

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07--J—--p-

—

24 1947

iVFinal Edition'

t«-

«i

i,u

■

'"-/.v r /'

ANNUAL REVIEWLNUMBERA

'■

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v' •;

* **«* :*lt

'l,{,

'•« •v.

' " '

•

•j-

in 2 Sections - Section 1

-V ' r

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5-n.* %- '.%•** /

•

mwm*mm

ammt

- *

Commercial

Chronicle
Beg. 17. S. pftt. Office

Economic

An Economic Picture of Europe
International Corporation

Manager, Johns Manville

Export

•

;

Denmark he noted recovery, with unsatisfied demand for

but lockouts

American

*By HAROLD J. KING,

I my

considered interference with commerce. Contends Labor

refusal to bargain are

•

"i''

■

••

.■

•

*•

(

•

' /

i ^

'* *"

the

picture, I

took

Business and Finance

automo-i

tive

time out

check

that
as

\v;'

much

Stating oil page 414,

play any j part in this drama, if he is to
Congress who represent him
know how j he feels about the questions
involved, it is now time for him to re¬

let those in

publish the opinions of
many of the country's leading industrialists and
tankers regarding the economic: outlook for "their
/ particular fields and the course of business generally

here

because I

know a number Of mem-

f>«

Bjarne Asper

;

today are-, my.
own'

views

express

Speaks

After the Turn of the Year

X could and

the

strosity at the base of our labor-industrial
strife will be thinking of ways to weaken
the Act, should repeal prove impossible.
{
If the average thinking American is

and

club

this

during the present year.

Europe

Monthly Range of Prices

Nature has been rather kind in
so

on pager

and low

443)

Ike

each^al^ft-^'

today's issue, starting

prices, by months, for the

New York Stock

♦Remarks of Mr. Asper before
Overseas Automotive Club,

year

1946 of

section is

City, Jan. 10, 1947.

Exchange. On

page

every

520 of the

same

(Continued on page 437)

comment

1947

the

any

State and

success

Municipal

Havana Litho. Co.*

R. H. Johnson & Co.

Prospectus on request

SECURITIES

\^• *.' v\

CANADIAN

Established 1927

prVESTMCNT SECURITIES

'''''-!|Bonds;|f|gi|

hf.

64 Wall Street, New York 5

Hirsch & Co.

BOSTON

Members New York Stock Exchange

Troy

<and either Exchanges

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

Geneva

Albany

Baltimore

Buffalo
Dallas

Williamsport

Scranton

Kenya Colony and Uganda

Office:

26, Bishopegate,
London, E. C.

FINANCE
V

**''5 * ^ *

' ' .""V 'Si'

*''rfj'

•-*

SECONDARY

Subscribed Capital-.!*..£4,000,000

The
•
.

Bank

£2,000,000 j
£2,200,000 *

Fund
conducts

banking

and

every

exchange

description
business

'Trusteeships and Executorships
•■also

undertaken

Common & Preferred

MARKETS

]'Zjl

INCORPORATED

Members

Security

45 Nassau Street
f",
:

Raytheon Manufacturing Co.

Tel. REctor 2-3600

Dealers Ass'n

New York 5

Enterprise 6015

^ .:-^V

>4.'i

Bond Department

HAnover 2-0980

Montreal

f..

•*-

_r.

OF THE CITY OF NEW

•/«

Reynolds & Co.
120

New

York

Exchange

Broadway, New York 5,
Telephone:

AiA-

Stock

N. Y.

REctor 2-8600

BeU Teletype: NY 1-635

YORK

)

Portland Electric
Power Company
Prior Preferred

'',/H

'■'A

Analysis upon request

/•»)yv*

S S )•

,-H'

•.

Hardy & Co.
Members

NATIONAL BANK

Toronto

and Dealers

•

r.v

■

for Banks, Brokers

•
'•
•
''"l-' * v :, **■
* Prospectus on request \

Service

♦Universal Winding Co. Com.

Teletype N. Y. 1-576

Philadelphia Telephone:

$2.40 Conv. Preferred

ST., N. Y.

Assn.

Bond Brokerage!
s

i/y/*.*-;?,'>{<•'/•«>"

Gearhart & Company

WILLIAM

Security Dealers

A#:!: ■ Bell' Teletype NY 1-395.

Products, Inc. Com. & "A"

York

New York

Colony and Aden and Zanzibar

Paid-Up Capital

*Air

♦Emery Air Freight „Corp.

in India, Burma,' Ceylon, Kenya

Reserve

CORPORATE

Bankers to the Government In

Head

OF NEW YORK

New

■

Woonsocket

(Representative)

of INDIA. LIMITED

Members

Harrisburg

Wilkes-Barre

Springfield

;*f'

4l'^\

THE CHASE

Syracuse

Bond Dept. Teletype: NY 1*708

NATIONAL BANE

Branches

THE NATIONAL CITY BANK

PHILADELPHIA

Pittsburgh

Teletype NY 1-210

Cleveland

'' *

*-■'$ •; •?' .-v.'. /•'

:V;':<■

Chicago

;

poses.

Treasury bonds, by months, during 1946.

Aerovox Corp.*

HAuover 2-0600

I I

the' Act in accomplishing its

Board, and for Other Pur¬

Vacuum Concrete

<;-,

•

To Diminish the Causes of avowed, purposes seems su¬
Labor^pispittes JBkrfeMnsf or perfluous. Should one enter¬
Obstructing
Intersate
and tain any doubts, however, as
Foreign Commerce, to Create to the success or failure of
a
National Labor Relations the Act in accomplishing its

table showing the course of prices of

•'

.§ ■ ^

AN ACT

Comment—In

impor-

Excerpts From The Wagner Act and Economic

present a tabulation showing the high

:•'

•

Igi i|| Interpretations and Comments

bond and stock in which dealings occurred on the

the

New York

501,

page

people. And besides that, all

(Continued

In the second section of

damage does not stare so much at
them and helps to lift the morale
of

New York Stock Exchange During 1946

in bombed-out areas

forth. Grass has grown over

those places so that the stigma

ments for

going to give you a picture of
Europe as I saw it.
'• •/.
am

lot of spots,

v-1
n

^ant elements of tho Act dre reproduced
below, along with brief economic interpretations or com-,

months and they may have $ifferent ideas.
But nevertheless I

and

aro

provisions of the Act.
;
For his convenience, the more

have
the / recent

berg
been

concerning the specific
;b-

fresh his memory

■

'''/v?11'1

As the

interested

Labor Board.

affiliated with

their effects.

bargaining, and is discriminatory, since strikes are

subject of labor relations* is sure to occupy a large part of the attention of
the Eightieth Congress, the National Labor Relations Act (Wagner Act) is certain to receive
In the overall picture in Europe, naturally my interest was in
the careful consideration of the legislators. Those who consider this Act the Magna Charta
company's line which includes automotive, but not necessarily
:—1
<s>
of American labor will be studying possible
alla u to m o- <5>
— ——-—:
tive.
Yet be-J
revisions to improve, if not strengthen the
ing so closely
Act.: Those who consider it the legal mon¬
nationalization.

over

;

Copy

PhJD*/f

specific provisions of National Labor Relations' Act and interprets

Enumerates obnoxious bureaucratic powers given to

"unfreeze" sterling, but industrialists are concerned

and trying to

Holds Act is coercive and against voluntary

goods, but in France he fpund confnsiofi, black markets, and distrust in government and French franc. Belgium is enjoying pros¬
perity and Britain is exporting more than half automobile output,

permitted
Rela- ?
tions Board acts as' both prosecutor and judge, a nd a "poison fang" is provision compelling em- ,
ployers to bargain collectively witli ''representati ves" of employees. Says legal sanction is given I
to closed shop and attacks exemption of Labor Board proceedings from prevailing rules of evidence* |

recent trip through Europe, Mr.

on a

Economist analyzes

Asper notes improvement in people's morale. Says Sweden Is well off, but taxes
'on gasoline discourages import of American cars.
In Norway and
Reporting

'f '

$1.50

Interpretation of the Wagner Act

By BJARNE ASPER*

Price

Thursday, January 23, 1947

New York, N. Y.,

Number 4562

Volume 165

Members

New

Members

New

York
York

Stock

Exchange

Curb

ira haupt&co.
York Stock Exchange
Principal Exchanges

Members New

Exchange

30 Broad St.

New York 4

Tel. DIgby 4-7800

Tele. NY 1-733

and other

111 Broadway,
REctor 2-3100

N. Y. 6

Teletype NY 1-270$

THE COMMERCIAL

FINANCIAL CHRONICLE
&

Thursday^rjahiiar^ 23^

Trading Markets in:

TheOutlookforlnterestRates

Electronics Corp.
Preferred & Common

»y ROBERT

Old Reorg. Rails
Commons

Established 1920 "

Exchange PI., N. Y.° 5
TELETYPE

Automatic

Elk Horn jCoal Com.

Dairies

Intl. Acc.

WL H. Rhodes Com.
.

Government

cember, 1945 this "figure .had in J
creased to $102 billions and it is

the

atio

Broidway, N. Y. "5

120

'WOrth 2-4230

"Bett

Teletype

NY'

;

of purchasing and

•

/ Robert

Craft

stances s u r rounding"each
quite

were

3/6s, 1956

time-consuming, but I do

81 Nassau

Edward A. Pureed & Co.
Members New York Stock
Exchange
Members New York Curb

ROBERTS

Exchange

& Co.

Report for using abnormal years as
heavy industries such as Gen¬
Companies will suffer deficits if
21% wage increases aire granted, "and lhat at present only producers
of soft goods and luxuries are
enjoying good profits because of
abnormal consumer demands. ^Suggests a new
system for wage
adjustments.

*Address

"Nathan

Mr.; Cra# .before

port"
tics

tion, New York-City; Jan. 20/1047,.

Public

Citizens Utilities Common

Aspinook Corp.

L. Douglas

to bo^

American Overseas

Utility
Shoe

v/.v'-f.

'•n'r/;';;*•*
':
' '•;

Struthers Wells
Common dc Preferred

-its

increases early in 1946), labor has

lost

what; it,;;:gmn£d; jduring a the

The report continues by
comparing
January,
1945/ the
peak month in the peak year of
year.

all times as far as the wage earn¬
er is concerned;
conditions

WHitehall 3-1223
1-1843

TbL UEctor ^-7^18,

nomic

re¬

dencies

during

everyone

agree

1947."

prices

(which

were

i Paper

& Preferred

;

We Maintain Active

If. S. FUNDS for
Markets

Boston & Maine R.R.
ABITIBI POWER &

Stpd. Pfds.

BROWN

Company B

1965

Effect

Thus

&Teene<micompom|
Members N. Y. Security Dealers Assn.

Bell

St., N. Y. 5

Members N. Y, Stock

■,

of 6.9%.

the

Complete

Brokerage SetYlce
for

Securities

commits the
state how this
would affect the

increase

wage

hard

Joseph McManus & Co.
Members New York Curb

Exchange
Chicago Stock Exchange

goods

industries,
where
high, where in-*
vested capital is large, where the
rate

costs

Broadway

return

within

terion

worth

net

Thus

NEW YORB;

N.y.

for

because

well

the.
it

year

the

duruig

tions,

takes

Haytian Corp.

for

its

Punta fllegre Sugar

con¬

Quotations Upon Request

i .v is it

Memorandum "op

Just

year.

Members

makes

company

one y®ar of its

is
on

out

Which is

availaple

page

484)

York Coffee &

Banks/ Brokers and Dealers

•

Memorandum

Troster, Currie & Summers

Members New York Security Dealers Assn.

Member New York Security Dealers Association
v

lli^y lte5,jNew YofH N, I,

Broadway. N. X* 5. N. Y.

Detroit

REctor 2-7630

Teletype NY 1-2361

| telephone

HAnover 2-2400

'Private Wires to
f

^ 1 Teletype 1-376-377-37* :j

Buffalo—Cleveland—-Detroit—-Plttsbnrgh—St. Louis

'
.

•

■£?;

.J.

"Twin Coach
■;:

request

•

vf.'iHCOKPOlWWrED'.

STREET •'
r

•

Td^ OTi-1815

Prospectus

Broadway,

•. :

•
:

Company

request

Members New York Stock

120

Conv. Preferred -

Reynbka|&

'«/ mW.YORfe 5

fESTABLlSHED 4890

I^TlkaPver >9380

Inc.

Harvester Co. Com. f

OOc Cony. 'Preferred

■

Solar Aircraft Company,

.J* G '"Whtite '& *C6MPANV
V

Exchange

*INE\i^

Acme Aluminum Alloys,
P'PpPi IP Conv. Preferred-

C.E.deWillers &Co.

Sugar

Member

;

tODGHT—SOlD—QVOTED '
P'r, PjpPxpP-: ''

■

Exchange

Assoc.

TEL. HANOVER 2-9612

Common
v

co.

Stock

Exch.

120'

indication

-.1 ?*■■■

on Tequest to

New

{ipere^J

Curb

York

New

•

...

Teletype NY 1-1610

few

in which

however,

Nathan Straus -Duparquet, Inc
.

New York 6

Digby 4-3122

are

comparatively small, and where
the impending labor strife will
center

HEANEY, Mgr.
KANE. Ant. Mgr.

BAUSCH & LOMB

Banks and Dealers

„

MICHAEL
WALTER

effect, that the situation as it
existed during that year
Js a cri¬

Teletype "NY 1-672

We have prepared

Curb and Unlisted

the

report

(Continued

120

HAnover a-v«10

Exchange and Other Principal Exchanges

llS BROADWAX "

& 1127 r

Telephone BArclay 7-0100

NEW YORK 5

Teletype NY 1-1140

in many ways, and from this tries
to deduce arguments which state,

Goodbody & Co.

Hanover 2-4850

Teletypes-^NY : 3-1128

> i
Established 1923
Members New York Curb Exchange

84 1VALL ST.

of omitting to

sin

basis;, 1946,

Canadian Securities Dept.

37 Wall

ditions were admittedly abnormal

/MINNESOTA^ & ONTARIO PAPER

Employees A

below

Heavy Industries

months.

BULOLO GOLD DREDGING

Northern New England Co.
Railroad

PAPER, Com. & Pfd., 5%

COMPANY, Com. & Pfd., 5% 1959

worth

net

1935-1939 average

We also

when it asserts that because

rising

return

sharp decline in

will agree.

;

far,

BROADWAY, NEW YORK S

the

labor

Moxie

4-ym
*V..Cv-r>4

■
• \ -'f

-•.

Frank C.Masterson &Co.

21% without lowering the rate of

/ ;;

port begins by
stating that hides the real facts about the po¬
♦'recent
eco¬
sition of the heavier industries. It

employment

York Stock Exchange
'NewYork Curb Exchange

120

Common

-TZ.

>>•«

•

states that wages can be advanced

the prospect .of a

New
;

Roberts

-desired,
The

have
brought uncertainty and instabil¬
ity, fear of business losses, an-d

Members

Abitibi Power

»,

further on in the
report, are admittedly abnormal,
unbalanced, and spotty. Thus it
proceeds to the next point which,
although correct in the overall
picture >. of
business
generally,

ten-

;

McDonnell&fo.

Street, New York S
Teletype NY

Maxwell

Bought^old^rQuoied

H. G. BRIINS & CO.
Bell

which

much

s a

■

least.

s:l®S^;Airfines
-'

Telephone:

Re¬

bases

leaves

■•

20 Pine

V. Tudor City Units

argument, today which,

/ <yS%s, 1952 "

itself,

„

Campbell

and the statis¬

Common & Preferred

Central

Re-

"Nathan

^Mid-Winter Meeting oi the

Common Stock

Detroit Int'l Bridge

New- York State Bankers Assoc!ar

Byrndun Corporation

Teletype NY 1-1010

caused by the first round of wage

;p o rtT

Broadway WHitehall 4-8120
New York 4, N. Y.

.•

the

branch offices

Commonwealth Gas

Mr. Roberts criticizes Nathan

$280 billions in February,

Street, New York 5

our

•,

; To implement its demands for higher wages when existing con-:
June 30, 1939, the public
tracts expire, the CIO caused to be
compiled and published an "ecodebt wasf less than $46 billions; it
l
•.
nomic study
subsequently reached a high of
known as the

Telephone COrtlandt T-4070
"Ben System
Teletype 19V-1-1548

Central States Electric Com^

peak

Growth of Public Debt

about

Stock & Rights

Members New Yortf Cufb Ejethftnge

HY1-1557

basis for computation. > Points out
eral Motors and General Electric

Class "A

Vanderhoef & Robinson

Stock Exchange

Southwest Natural Gas

461)

page

La.-Birmingham, Ala.

Bell System

ing at the outset of World War II,
the changes that took place during
the war, and those that have oc¬
curred during thefpast 17 tnontlis.

Savoy Plaza

Economist, Bendix, Luitweiler

think, it, is pertinent to this dis¬
cussion: to Refresh our, memories
of the financial situation prevail¬

Savoy Plaza

'.'^VV

By MAXWELL B.

different from the factors present
in today's economy. A full review

is too

(Continued

Southwest Gas Producing

Fallacies of the "Nathan Report"

of these perl-

ods

billion at the end of 1939 to

carrying

-s

1-1227

pose

Monmouth Park Jockey Club

circum¬

the

iPzPP'PP

June, 1945 that the in¬

crease, particularly in the volume
of business loans, has taken
place.

Aside from the loans for the pur¬

for

World War II,

York

Direct wires

pai n f u 1
30's, culminat- estimated at present that there are Government
deposits in the bank¬
ing in the fi- about $80 billions of Government
nancial prep- securities in the banking system. ing system rose from less than $1
a r

Exchange

been since

obligation^. - By ^De¬

New

New Orleans,

little change in the volume of
lpans in the banking system dur¬
ing „the course of the war. It has

States, held only $20 billions of

HAnover 2-0700

very

boom and bust

Kaiser

Stock

Members

incident
to
the
bond
drives during the war, there was

ing all active banks in the United

..a

25BroadSt.,NewYork4,N.Y.~

securities

about $260 billions. At the end of
1939 the banking system, embrace

Request

I-.'

—

Steiner, Rouse & Co

••

of the 20's and

Oils & industries Ffd«

Baltimore

1946, and at present it amounts to

periods " fol¬
lowing World
War I, the

Pfd;

Com.

McEweti &

r om<i>

•

:!""iV'-!*"

the experi¬
ences of the

Society A

•

Alarm

Fire

Analysis

has

1-423

gained

Members

Bought—Sold—-Quoted

mean

Banking today is orilthe threshold of a period quite unlike ahy through which it
passed since the formation of the Federal Reserve System in 1914. I go hack to this
date Because it ma®
modern hahking. While there Is
something td he

Dealers, Inc.
HA 2-2772

May,

between

Security Dealers Assn.

Nat'l .Ass'n of Securities

Manufacturing Co.

rate pattern,

higher? rates, and pre die tsalightabdtemporary business recessiofe .{lolls
maximum redemption pf ipnbjic debfwilf be under $3 biiliocs annuaTly ^ind warns resides?
lands®
by banks has ended and they must again he selectire in Ranting losiits.

SECURITIES CORP.

Florida

change in interest

fnflu^i^g Intei^
will bring about soma wideningof spread
borrowing^jand; other categories^ Dbes hot look ftnniedi^y|o^

fate? of^ government

i>y business which

KING & KING

BELL

Rockwell

though; ficopomic lactws
•

H.pfpPpM-P

Vi(^-?re$ident andTreasui^r, <>tiaranty Trust Company of New York

Banker contends there is not much basis^for expecting substantial,

ExpresoAereo
Lear, Inc.

Members N. Y.

■

Preferreds

Heintz

lack

New

Co; J

Exchange
York S, N. Y*;(

Telephone: REctor 2-8600
Bell Teletype: NY

Formula for

INDEX
.-A:'vy \>'•"<

...

«■

Interpretation

—Harold

the

Page

Ar|lcles and News
Economic

Act

Wagner

Cover

Hv Craft.—

_391

Prospects of Recession in 1947—Howard R. Bowen

392

Labor, Capital and Stock Market—Louis .Manville__
Independent Banking—It Must Be
—Orval

392

Preserved

Adams

Instalment Credit Should Be Decontrolled
—William J. Cheyney

and

powCT,

with

Facing

Banks—Allan

Sproul

front

page

new s.

397

The

397

;

rise

Wages and Industrial Progress—George W. Taylor.

399

;

economic dis¬

Why Not Industrial Peace—Herman W. Steinkraus

—402

Prospects—H.

Bonfig—

—Roger W. Babson

^403

—,

RelationsCrucial

Labor

jL£47~Marcus Nadler.

i.492

Economic Outlook for 1947 Start

tions of wages,
and

prices

concerns

Snyder Refuses to Reveal Contents of Dalton
Correspondence
to Illinois Bank

____________

_395

Department of Justice to Help Small Business

396

Bertil Ohlin to Lecture at Columbia
University

-—398

Pessimists Misreading Economic Signpost, Says Rukeyser—399
Employee Relations Expert Named Bbeclal Mediator
J
UFE—A. M. Kidder & Co.:
Pispiite^^-_.w.^

Study to Amend Securities Acts

AFL Denounces Nathan

407

Report_l____

408

World Bank Difficulties.J

___________

L.412

Regular Features
Page

Dank and Insurance Stocks

408

Business Man's

403

Canadian

Bookshelf

Securities

405

Pace
Our

Public

Dealer-Broker Investment
Recommendations

398

Eineiig—Britain's Economic
397

Mutual Funds

406

NSTA

400

Notes

on Governments...404

.475

Estate

.......

The

.400

Tomorrow's

Whyte S?iy,s)

...

the

v............491

Washington and You

American competitive .enter¬

Published Twice Weekly

York,

Reg. JI. S., Patent Office

Pan-American
Other

BERBERT D. SEIBERT, Editor & Publisher
*
WILLIAM DANA SEIBERT, President

^IGGS. Bu^ness Manager

Other

135

Salle

jJ^An address by Wm. K. Jacksop
before

S.
of

per -year;

merce,

the

25,

1942;

$25;00

per

the rate

(Foreign postage extra.)
Earnings
Record -r- Monthly,
year.
(Foreign postage extra.)
of

for

the post

office

J. F.

;Vl-'

Prospectus

'7|-,

Request

;

Reilly &Co.,
Incorporated

New York :

Chicago I

TRADING MARKETS
Lear Inc.

Thlokol

business to sell five million auto¬

National

mobiles at low prices than 100,000
cars at high prices/
This is the

Com¬

bulk: ht the!
rest

people*^rather than

insecurelyupon

the

upper

levels of purchasing power.

The democratic idea of-the
market

has

United

States;

made

big

been

are

interested in

National Shirt Shops

em926

Members New York Security

mass

developed in the

lip Broadway.
?, Beijt ^yeteyi

(Cointinued

low-cost

on page

Sugar Assoc.

U. S.

Sugar §

Commodore Hotel

High Grade Public Utility and Industrial

^Fi^elify Electric Co*
Class A

PREFERRED STOCKS

Common Stock

Susquehanna Mills
•Prospectus pn requesjb

Members

New

Broad

Preferred

York Stock

Exchange

Street, N$w

Tel.:

Rockwood & Co.

j2-030ei

Lea Fabrics

Spencer Trask*& Co.

Willys-Overland

Deaieffi

WOrtlp

Punta Alegre Sugar

431)

Thi-

Haytian Corporation

produced in

♦

•

Teletype

That is what has

business.

automobile cannot be

'fe

Htnm

offerings of
:

Corp.

Company

HAnover

Members

New

2-4300

Boston

Mohawk Rubber

York Seayrity Beaters Assn." ■

25 Broad St., New York 4,

N* Y.

WHitehall 3-0272—Teletype NY 1-956

V/
Schenectady

Glens Palls

itembers ftew

Te}.!, An d over ,4690.
Teletype—NY 1-5

Albany

DUNNE & CO.

park Curb Exchange

135 S. La SalleSt., Chicago 3

Private

Wire

Boston

Plymouth Cordage

Bond & Mtge. Guar. Co.
f

•

Broadway

Pan American Bank

S Broad

York .Stock, Exchange

uTOlehall 4-6330

PeU Teletype NY 1-2Q33

Telephone: 3^2137
; j

•

\ **Sterh & Stem

;

•

••

*+Offering

oft

Request

-CHICAGO 4

Direct Wire Service •

New:York—Chicago—St.

Louis

|If

established 1914

"^ j

Specialists in Soft Drink Stocks

;

74
~

JCarfsai «City-r--L6fl: Aiigelea

HOIIROSE 8 hlQSTER

Teletype CG 129

.Teletype mm 80

request

Trust Co.

* Year-end

Harrison 2075

: -

Circular

*JPublic National Bank

Circular

Bldg., Miami 32

Textiles, Inc.

(Atlanta)
•

Board of Trade Bldg.

DIgby 4-8640
Teletype NY 1-832, 834

& Co.

Bottlers, Inc.

growth type equity in the soft drink industry.

Memberr N. .Y.rSecurity Dealers +A&an.

Prudence Co.

Members New

INC,

NEW YORK *

jNewburger, Loeb

Red Rock

STRAUSS BROS.

Lawyers Mortgage Co. ;

Lawyers Title & Guar. Co.

£ please

St.,

certificates

trial gppius. It would ,be

Eastern

for¬

TITLE COMPANY

eign subscriptions and advertisements must
be made In New York funds,.
^!^v"

New

■''/<

Amcrjcaus; may take ^pride -ip
(the accomplishment of its •indus¬

Chicago, 111., Jan. 15, 1947.

the fluctuations in

remittances

York Security Dealers Assn.
National Assn. of Security Dealers, Inn;
New

exchange,

Teletype NY 1-1203

(Member"Of.

°-

year.'

Note—On, account

second-class matter Febru¬

■

ary

Association

■

.(Telephone: State 0613);
Gardens,, London, E. C., Eng¬

Broadway, New York, N. Yi

c/o Edwards & Smith,

^Reentered

minor

Company
-

changed product

March

r'A:r^;r:

3, dll.

Drapers'

land,
.

.Offices:

Union, ,$35.00

which has

$25.00

;

•Banfeita^
Monthly

Thursday, January 23, 1947
Every Thursday (general news and ad¬
vertising dssue;) ;and every Monday (com¬
plete statistical issue — market auatation
trecords, corporation news, bank clearings,
Vtate and city news, etc.).
Chicago

Act

.of- .CSanada, -^$38,00 vjperi
Countries, $42.00 per year.
-

».

the
;

Company

HAnover 2-8970

Dominion

REctor 2-9570 to 9576

WWXIAM n.

under

Subscriptions in United" States, U.
Possessions, Territories --and: Members

WILLIAM B. DANA COMPANY, Publishers

£5 Park Place,-New York 8, N.

Y.,

Subscription Rates

FINANCIAL CHRONICLE

3,1879.

The COMMERCIAL and

This

renown.

is the home of the industrial ge¬

nius

•

.f'

GOLDWATER, FRANK & 0GDEN
39

making and democratic concept that the roots
industries of the of sound business rely on the solid

prise system world

.393

•.

Mortgage Certificates

Great Lakes region have won,for

Registration.-. .485,

Markets \Walter

mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmrn

demonstrable truth.

machine

machine-using

Salesman's .Corner.... .412

Securities Now'in-

the drama of action.

standards is

,.410

Securities..

4-6551

ure tp extol in more
detail the
usually imaster' works and the
benefits

news

jobs, make profits and raise liying

...396

Securities.,

Securities

Observatlons-^A. Wilfred. May... .393
Reporter

Report

Security Offerings. ..490

Utility Securities

Railroad
Real

Troubles

Our

Reporter's

Prospective

405

Bust?"—

WHitehall

Title

—399

Resumedby;Sj2C_^_

Wason and Lubin to Discuss "Boom

jgenius."'

Offerings Wanted

i'f

ne-

'achievement iu-the creative mcr-;
vels vof this midland industrial

of our\

one

All

these Great'Lahos industrial cenaction, there is noth¬
[ters haye conferred upon America
ing more important today than
and the World,
^ut the world
the rising wage-price spiral. This
already has paid ? the most^eloris an action that involves
one i of
quentspossible tribute to the -inthe greatest clashes of
forces in
.dustry ^of v this region by heating
economic history.
Strikes, legis¬
ja Jpath^^
tind'^ut how it Is
lative; maneuvers, the. thunder' of
(done. jFrpm Moscow to Sao Paulo,
debate
in
public forums over
ithe'world expresses its sincerest
wages: and
prices are /surface
flattery by attempts at imitation.
naanifestatiops pf the deepr^hig
| Certain .fundamenttal .concepts
teconomic forces.^
> >•
"
'of economics lie behind the tan¬
Heire in vthis ;area^ the^wage*
gible flowering of competitive en¬
price spiral has' special signifi¬
terprise into the great plants and
cance.
I
know; of 4ip better lab ¬ organizations of the mass producoratory *
SehiQhsltxiifip^l of [tionfndustnes.. One.ofthqse ideas
the fundam%M^truths $>i•
wages is; the
concept of a wide market
and ©ricea than !®s vas^diray uf
;fotuided\ 011 low .production cost
productive industry^around the
and low prices cfhd small profit
Great ;Lajte^per sales unit.: ;•,
?
0
low pfices :Wid^'-^biiar^^''er(eate
This- is the idea that it is better

394

page

one

the field of

394

War Assets. Administration to Enter Foreign Credit Field—394

EPI£ Jp» Ex tend Financial A id

Front

one.

...393

have

become a mat¬
ter of vital self-interest
to every¬

Rumor Well Substantiated That Haskell Will Regain Post
With E. F. Button & Co. Shortly
—

rela¬

profits

William K. Jackson

the'iew into indispensable

people of Profits have been
only
■America. ' r"

Controversial Permissive Incorporation Issue May Be
Injected Into Coming NYSE Elections..

:essities -for/the millions; This is
(the proving ground of mass pro-

I the

Page 414.

ductioiiJ that has lowered prices,
raised wages, shortened hours of
ttabpr( raised living standards for
jeverybpdy, paid billions of dollars
illustrates the lip
;iaEes pnd / helped m.ah® ,the

•The

Opinions of Leading Industrialists and Bankers

Telephone:

importance of United States
incomparably^strong
/the subject to
among
the
industrial - nations.

•.

___410

—.

this

now.

WALL STREET, NEW YORK

cus s i o n
to
front page in¬
terest in itself

Safeguarding Exjport-import Dauk^Uoward Buffett____—-407
Management Must Plan fcr .Continuous Employment

"or

Trp

"Varga" Memo Pads

into ■ the pub'-Sj i
j
>:■>
lie spotlight of
jafter product from costly luxuries

Britain's Economic Troubles—Paul Einzig

Television

Send for
.

de- ?

pay

always reply immediately

their list- ol obsoletea.

of millions of

pressing
share wealth is by lowering prices.

with up-to-the-minute valuations

discussion in recent weeks
oftherelations of wages, profits
anci prices has come out of the:
abstract realm..of text-book doctrine

A Look into World and National Affairs—Earl O. Shreve__396

Problems

|abor

Holds way: to

ALWAYS WRITE"
•—and

urges
to Consider plight
fixed or limited incomes
when

39S

mands.

—

pur-

consumers

395

Contrasts of U. S. and European Economy
—William F. ZimmerlL.

395

British Violation of Loan Pact—Herbert M. Bratter

chasing

394

;__

"THE CUSTOMERS

vital sett-interest to

390

Formula for Prosperity—William K. Jackson

and company

v
everyone; Mr, Jackson statesj
is more
serious to public at present than)rising
Denies
wage-price
wages can be increased without 1
higher prices and warns higher
prices in turn» will reduce markeis for
mass-production industries
and bring about
unemployment. Refutes "boot straji thesis" that
wage increases enlarge national income and create
additional

390

Fallacies of the "Nathan Report"—Maxwell B. Roberts

-illCHMTfin

JACKSON

Chamber of Commerce of U. S.

Maintaining rslatiiin.of wages, profits and prices has
become of

of Europe-^Sjarne Asper.^—.Cover

The Outllok for Interest Rates—Robert

WM. K.

President,

King

An Economic Picture

Prosperity

?*$•/':;'

G. E.
Members

Trinity Place, New York 6,

^Telephone;
BOwlingGreen S«7409

NY 1

request

tlnterberg & Co.
N.

Security

Dealers

Ass'n

61 Broadway, New York 6, N.Y.
^

analysis

Telephone BOwling Green 9-3565
teletype NY 4-1666
* *

■%?*

THE COMMERCIAL •& FINANCIAL

Thursday, January 23, 1947'

CHRONICLE

Prospects of Recession in 1947
ACTUAL MARKETS
IN 250

ACTIVE ISSUES

li<itiwiW*i

Abitibi Power

STOCK

Armstrong Rubbw

MUDS

Buckeye Steel Castings
Cinecolor

Chicago R. 1. & Pac.
Old

Pfd.

Diebold Inc.*

District Theatrest

Douglas Shoe*
Expreso Aereo
General Machinery
f:

General* Panel

Howard R. Bo wen

Gt. Amer. Industries

Hartford-Empire Co.*

SSI®

Higgins Inc.

Hydraulic Press
Lanova*
<

Majestic Radio •& Tel.
Michigan Chemical
Minn. & Ontario Paper

Missouri Pac.

I Wish He'd Stop

Yelling 'Going Down' All the

Time!".

Old Pfd.

Mohawk Rubber*

ItaboiT^Capital Tthd

Moxie

lN.Y. New Hav.& Hart
?•',

Stock Market

Pathe Industries

Philip Carey

Purolator Prod.*

|»

Richardson Co.
Taca Airways

Taylor-Wharton*

Tenn. Products

Upson Corp.*
!/■ U. S. Air Conditioning
United Drill & Tool"B"
Vacuum Concrete

Alabama Mills*
Aspinook Corp.*
N. J. Worsted, New
Textron Wrnts. & Pfd.

**Grinneil Corp.

American Hardware

Northern Indiana Pub. Serv.

Art Metals Construction

Piaudler Company
**Rockwell Mfg. Co.

*Crowell-Collier Pub.

Cent States Elec., Com.

General Instrument Corp.

Derby Gas & Elec.

Bought

Northern New England

Standard Gas Elec.
'

1 >'

f T~'' * Bulletin

1 ""

1 Prospectus
or

Upon Request

Circular

upon

Sold

Quoted
on

Research Item available

Request
on

Request

Goodbody & Co.

I Southwest Natural Gas
"V:V-

,*Prospectus available
**

| Puget S'nd P. & L. Com.
A'."

Members N, Y. Stock Exchange and Other Principal Exchanges
115

108 West Adamt St. fhi(*«o

Broadway, New Yorlt

Telephone BArclay 7-0100

Teletvne NV 1-672

request

American Overseas Airlines

^District Theatres

*Hungerford Plastics

*Metal Forming Corp,

*Dumont Electric

Kingan & Company
Standard-Thomson Corp.

Members N.Y. Security Dealers Assn.

U. S. Finishing Com.

*Prospectus Available

& Pfd.

N. Y. 1-1286-1287-1288Direct Wires To

«<

,-.•

Phila
•

Ch'rastr) <*: T>c Angeles

ENTERPRISE PHONES
Ilartf'd €111

£uif. 6024

FIRST COLONY CORPORATION
52 Wall Street

New York S. N.

Boa.2100

Established

Members JV,
■

Tel. BAnover 2-8080

Teletype fvv

REctor

Dealers Assn*
TO Broadway

2-4SA'

Bell System Tf

SIEGEL & CO.

1908

ritu

y?,r

Y. 1-714

39 Broadway, N. Y. 6

DIgby 4-3370

Teletype NY 1-194?

Volume 165

•

Number 4562

Behind - the -Scene

THE COMMERCIAL 4 FINANCIAL
CHRONICLE

Interpretations

from the Nation's

Capital

CANADIAN

^SECURITIES

Aldred Investment Trust

4%s, 1967
Brown

Company 5s, 1959

Steep Rock Iron Mines Ltd,
5%s, 1957
United Securities

3s, 1952, Series A

52 WILLIAM ST., N. Y. 5

HAnover 2-0980

.Bell Teletype NY

New York

1-395

Montreal

Toronto

American Insulator
San Carlos

Milling

Albert Pick

{J::-

Carbon Monoxide Eliminator

American Beverage
Preferred,;,/

■

PETER BARKEN
32

Broadway,

New York 4, N. Y,

Tel. WHHehall 4-6430

'v Tele.

1-2s1h

Specialists in

Domestic, Canadian
and

Philippine

Mining Issues

Brokers
In

Dealers]

Investment

62 William St.

Securities

New York 5, N. Y.

telephone
WHitehall 4-2422

Bought

Sold

—

Quoted

—

Teletype
NY

1-2613

Branch Office

113

Virginia Electric and Power Company
Common—When Distributed

Hudson St.,

;;

Jersey City, N. J.

T rading M arkets In

Joseph Bancroft & Sons
Central States

Elec.(Va)

Christiana Secur. Com.

CL-A.: Saxton & Co., Inc.
70 Pine Street, New

WHHahall 4-4970 isivn

■

Yorlt?5rN.
:

Teletype NY 1-609

Moore Drop Forging Co.
Rochester Telephone

Laird, Bissell & Meeds
Members

120

New

York

BROADWAY,

Stock

NEW

Exchange

YORK

Telephone: BArclay 7-3500
Bell

American Gas & Power

Agents We Are

Central Ohio Light & Power

BUYERS of

IRANIAN-OWNED STERLING

Members N.Y. Security Dealers Ass'n

We render a

brokerage service

^{ Teletype

Nos. NY 1-2762-3

and SELLERS of

'•••

•*

•

Bought—Sold—Quoted

Teletype—NY 1-1248-49

ACTIVE MARKETS
Vulcan Iron Works
Greater N. Y. Indust.
Musi craft
General

Tin

Recording
Investment

Benguet Cons. Mines

Kinney Coastal Oil

IRANIAN-OWNED STERLING

—"

CFn

Copper Canyon Mining

SAUDI ARABIA-OWNED STERLING

Street, New York 5.

TefepAbne: WHitehall3-7830

•

....

Banks and Dealers

60 Wall
'■ZZZ

Tennessee Gas, & Transmission

BAR GOLD HELD ABROAD

in all Unlisted Securities for
.

Northern Indiana Public Service

CHINESE-OWNED STERLING

,..

N. Y.

Standard Thomson Corp,

F. BLEIBTREU &

CO., Inc.

MEMBERS N.Y. .SECURITY DEALERS. ASSOCIATION

79 Wall St., New York 5, 1ST. Y.
Telephone HAnover 2-8681-2

63 Wall

Street,\New York 5, N. Y.

Bell Teletype NY 1-897

G0ULET & STEIN
Member Nat'l Ass'n oi Securities
21 William St.,

N.Y.

Dealers, lac.

HAnovet 2-1108

•

THE COMMERCIAL & FINANCIAL

Baltimore Transit

to).

American Air Filter

American

Bayway Terminal

Members New York & Baltimore Stock

shortly to enter the foreign credit
field, under the coordination of

Incorporated

the NAC created to dispose of sur¬

BALTIMORE 2

Teletype BA 893
REctor 2-3327

Long Distance 238-9

States.

United

The Parker

Gruen

Watch

Memos

cates

industries

power.

available

basic

mately 40%

and

Exchange

of indicated

available

Circular

book value

Pennsylvania Power & Light
upon

4% %

request

whether he intends to make

Pont, Homsey Co.

I
j

PEniiypacker 5-8200

Teletype BS 424

Private

N. Y. Telephone CAnal 6-8100

Anglo-Argentine
Monetary
Agreement, Secretary
of
the
Treasury
Snyder today
told his press conference:
"We
are not going to carry on the cor¬
respondence in the press. We are
simply not going to do that.
"At the appropriate time, if it
is proper to release that corre-r
spondence, it will be released, but
I am not going to read letters that
I am thinking about, to be deliv¬
and

PH 30

Phone to N. Y. C.

COrtlandt 7-1202

Botany Worsted Mills

Empire

Southern Gas

Empire Steel
Pittsburgh Railways Co.

Boston & Maine RR.

Warner
•

Circular

Request

his

letter."

Connolly & Co., Inc.

24 Federal

Halladay & Co., 14 Wall Street,
York City, members of the
York Stock Exchange, will
admit Wilson P. Merritt to part¬

New

PHILADELPHIA OFFICE

Street, Boston 10

Tel. Hubbard 3790

Company

New

Stock Exchange Bldg. Phila. 2

Tele. BS 128

Telephone

Teletype

RIttenhouse 6-3717

PH 73

nership on Feb. 1.

des moines

SPOKANE, WASH.

SALT LAKE CITY

WHEELOCK & CUMMINS

NORTHWEST MINING

Utah Power £r

SECURITIES

Light

Utah-Idaho Sugar

Light Co.

Amalgamated Sugar

.or

Quotes call TWX Sp-43 on Floor
Exchange from

A.M.,

Time:

Std.

Pac.

10:45 to 11:30

Sp-82

other hours.

Bought--—Sold—Quoted

PES

CORPORATION

Edward l. burton

Members Standard Stock Exchange

of Spokane

a company

BUILDING

MOINES

Brokers

ESTABLISHED 1899

IOWA

TELETYPE

.i M

■

i-/>" i;i

-i"i

j.'

Foremost Dairies, Inc.
|
Conamon & Preferred

Building, Spokant

for

:M,C

Clyde C. Pierce Corporation
j- Florida Municipal &

Corporate Securities

Barnett Nat'l Bank Bldg.

Jacksonville

jLong Distance 47
'

Branch—St.

Florida

Teletype JK 181 !;
Petersburg,

Fla.

Adams

same

Whether

tell

must

that

you

color

Whereupon the new bride,
exclaimed: "Yo\ sho' is!"

blind."

Far be it from

to accuse the

15,000 independent banks of lack¬

ing vision.
that

when

vision

tutions

Haskell Will
BeJtl His Old Job AIE. F. HuHen & Co, Feb. 7

Rnmor Well Substantiated Thai

Understanding is that Exchange, in effect, is changing his
tration cancellation to merely a 30-day suspension.
Two whole weeks have

passed since the historic

regis-

announcement

prospective consequently, Haskell will be back
at his old job at E. F. Hutton & Co.
J. Paris,
attempt by Feb. 7. The Stock Exchange
denies it has been requested to
to bribe two professional football
reconsider
Haskell's
application
players (and later convicted)' and
and the officials of E. F. Hutton
that he, Haskell, had stated his in¬
& Co. couldn't be reached yester¬
been

called as

juror in the trial of Alvin
charged at that time with

ability to serve as a juror since,
in his own words, "I am in the

day for comment.

It is known that the Exchange
business
myself." In
the action which the was—if not is—somewhat in a
Exchange had taken against him, quandary over just what pro¬
Mr. Schram pointed out, it will cedure to follow in the event it
also be recalled, that "Mr. Haskell should decide to reinstate Haskell,
has a misconception of the busi¬ It is probably the rules of the Ex¬

which

has

been

en¬

gaged."
Many brokers on Wall Street,
expressed the opinion at the time
that Haskell should not have been
for a mere expression
opinion whether on the subject
of the securities industry or any

change which have been holding
up

final disposition of the case.

With First Securities Co*
(Special to

The

CHICAGO,

Financial Chronicle)

ILL.

—

Edith

Established

event—and this may be First Securities Co. of Chicago,
significant than it might 134 South La Salle Street. Miss
possibly seem at first—there is a
Brown was formerly with Riter
well
substantiated
rumor
that,.
In

any

very

likely in consideration of the

& Co.

MONTGOMERY, ALA.

Common

Offerings made

on request

—copy

1898

Members Salt Lake Stock

Exchange

MOHAWK VALLEY
INVESTING COMPANY i
'

BROKERS

INC.

Stock Exchange Building
Salt Lake City,' Utah

Phone 5-6172

238 Genesee St,

Montgomery,

Utica 2, N» Y.'

Tele. UT 16

only by prospectus

upon

request

THORNTON, MOHR
,

Tel 4r3195-6-7

Co., Inc.
Stock

Bought—Sold—Quoted

BOUGHT—SOLD—QUOTED

W. H. CHILD, INC.

Teletype SU 67

Lime Cola

Cotton Mills, Inc.

„

joined the staff of The

Brown has

other topic.

Utica & Mohawk

BROKERS and DEALERS

Circular

^ :

feel

way.

Orval

UTICA. N. Y.

STOCKS

;

Underwriters

Branches at

UTAH MINING

the

confession, and I grant

TRADING MARKETS

Common & Preferred

probably

the same privilege. There are
a
lot of things wrong about me
that you should know, but, first I

464

Winn & Lovett Grocery Co.
i

Dealers

Kellogg, Idaho and Yakima, Wn.

JACKSONVILLE, FLA.
«

Peyton

160 S. Main Street
Salt Lake City 1, Utah

Bell Tele. DM 184

BELL SYSTEM

••'«

You

make

STANDARD SECURITIES

Phone 4-7159

not

have resulted.

penalized

3.30% Preferred Stock

EQUITABLE

rtnership

would

ness

For Immediate Execution of Orders

Iowa Power &

that this

sure

p a

been

you

gambling
justifying

INCORPORATED

sober

had

Company

Halladay Admits Merritt

Walter J.

married.

Had

Trade

Wawaset Sec. Co.

H. M. Byllesby &

are,

...

Sterling Motor Truck

Prior Preferred

said, "here

by Emil Schram, President of the New York Stock Exchange, that
the
registration of William H.<^
Haskell
as
a
registered repre¬ expressions of apelogy made to
sentative had been canceled be¬ Mr. Schram by Haskell himself
cause
in General Sessions Court at the time, the Exchange, in ef¬
ered to Mr. Dalton with the morn¬
he had made the statement he was fect, is changing its cancellation
ing newspaper.
I have not yet in the
to merely a 30-day suspension of
"gambling" business.
delivered to Mr. Dalton a reply
registration and that,
It will be recalled that Haskell Haskell's

American Box Board
4$

ud;

pub¬

correspondence with Chan¬
Dalton oh

the

BOENNING & CO.
1606 Walnut St., Philadelphia 3

BOSTON 9,- MASS.

HAN cock 8200

lic his

cellor of the Exchequer

31 MILK STREET

"Wife,"

cramp

would have made your con¬
fessions, and I would have made
mine. Too late now, wife. Never¬
theless, though tardy, I am going
—you

Reveal Dalfon Letters

Common

Inquiries Invited

t he

he sen

the other

would have confided in

Snyder Refuses to

Preferred

Pennsylvania Power & Light

PRICED ABOUT 8

days

b e

yet. In one respect do¬
will

our economy.

married.'^

union,

can

one

It has been well said
is gone, insti¬
perish. "■ However, if we,
hot, we are through apathy and lack of in¬
man and wife.
Had I been clear¬ telligent, fighting courage, sleep
headed, and you the same, each while inroads are being made that
will be inimical to the system of
*An address by Mr. Adams be¬ free enterprise, which enterprise
fore the Independent Bankers As¬ has given to 140 million Ameri¬
WASHINGTON, Jan. 22 (Spe¬ sociation of Southern California, cans the highest standard of livcial to the "Chronicle")—Asked
(Continued on page 427)
Los Angeles, Cal., Jan. 23, 1947.

fall

considerations

Several

business

but feels
raw materials and machinery
outside its province.

that

tremendous-.improve¬
position, at approxi¬

share. *

like food and medicine,

and at less than net working capital

per

exports to Germany. The War
Department is taking care of so
called "disease and unrest" items

Los Angeles

•

dollars

money

was

abroad: credit terms
cannot
be more generous than
those extended by WAA at home.
The Export-Import Bank con¬
tinues to study the financing of

Private Wire System between
Philadelphia, New York and Los Angples

despite
in

of restoration of sound

given an honorable discharge after four years service
foreign shores.
While under the influence of too much fire water,
A "GI"

WAA's style

Street, Philadelphia 2

approximately 40%
original offering price in

than

1940,

total

mestic

Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—-WHitehall 3-7253

•

ment

Curb

New York

At Ourrent quotations, common stock
less

York

1420 Walnut

substantial prospective earning

v'-rV,

New

indi¬

served

Stresses importance

after

will

York, Philadelphia
Los Angeles Stock Exchanges
Also Member of

leading manufacturer
of tube couplings, fittings and valves
for ther transmission- of hydraulics.

i^s

shift in policy. Here¬
Liq¬

foreign field to itself.
What
WAA's
export

BUCKLEY BROTHERS

for

Company

estimate

Members

the

on.

tofore the Office of Foreign

Request

American banking system is a mature >
product of long and steady growth which has contributed to our
economic progress, pleads for continuation of local banking and '
decries tendency toward concentration.
Urges • bankers to be, '
above all else> citizens, and to take -wider and more jaetiye: interest!
in political and economic problems.
Opposes banking by govern*, ~.
ment and "disguised Europeanism" introduced by New Deal.

uidation Commissioner has had the

Philip Carey Manufacturing Co.

Appliance Company

expeditiously disposed of at home,
notably machine tools. Inaugura¬
export program will
represent

Outlook

Salt Lake City, Utah

Western banker, maintaining

tion of WAA's

Colorado Milling and Elev. Co.
The

stocks

WAA has

hands more property than can be

Bell Tele. LS 188

philadelphia

BOSTON

Government

plus

Kentucky Horn* Life Bldg.
LOUISVILLE 2, KENTUCKY

National Bank,

(Spe¬

cial to the '^Chronicle" X?—'The War
Assets Administration is expected

1st Floor,

By ORVAL W. ADAMS*

BOND B

Executive Vice-President, Utah State
-

WASHINGTON, Jan. 22

1947,

Independent Banking-It Must Be Preserved!*

sufficient

disposal at home.

Lovett Grocery

M BANKERS

New York Telephone

Company is

program >

because of difficulty of

'jy

■

Exchanges and other leading exchanges

Bell

export

inaugurate

(•'

•

Winn &

STEIN BROS. & BOYCE
CALVERt ST.,

Murphy Chair Company

National Sash Weight
y^ ;-,Preferred'-^ y — --y. •

6 S.

Ass'n

OtrdlerCorjporatioB

Monumental Radio

Turf

Foreign Credit Field

Consider H. Willett

;■>■:

Davie Coal & Coke

;

WAA Plans to Enter

■

IBI

louisville

Baltimore

Thursday, January 23,

CHRONICLE

Telephone

CO.

Alabama
Teletype

•

3-6696 & L. D. 53

MG 84

Numbei 4562.

165

Conducts

Negotiations

Bogie, Aesiddnt *"of
Shroder Rockefeller & Co.1
Inc.,
*

nego¬

tiations

the

Malting Com¬

Co.,

rooklyn,
leading to an

Mord M. Bogie

people. Concludes government management with such
"selective" controls entails complex and unpredictable ramifications.

which

re-^

stricts

varying
to

time

New York personnel at the Hotel
Biltmore in honor of 35 members
of its local office who have been

predecessors

for

years

Rose

Edith

Womah,

Aubin,

and

John

Dec. 1

wide-spread

feeling that
William J.

Customers'

Leumann,
of the bookkeeping
department,
have the longest service records,
both having been with the firm
for 41 years. A
program of en¬
tertainment followed the dinner.

now

been

led

believe

their objective has been

obtained, that by far the greater
part

the

controls

have

been

lifted.
This is far from the truth. The

twelve major categories of prod¬
ucts still fully curbed when
on

instalments

constitute

tically the entire field
durable

the

use

utmost

sold

prac¬

consum¬

products.v With these

the.

}

;

'«'

total

sav¬

ings banks throughout the coun¬
try are expected to attend the
mid-winter meeting of the Na¬
tional Association of Mutual Sav¬
ings Banks to be held on February
4 at the Commodore Hotel. The

stories

described

American

objective may be
open
competition

it.

Charge accounts in¬
$750 million last year to
$2 billion today, higher
than at any time in history.
Yet
on Dec, 1, 1946, in the face of this
increase, > charge accounts were

technical

area

loan

agree¬

Herbert M. Bratter

lies

the

1946,

deficit.

clause (B) (6)
of the Anglo-

"Chronicle"

on pages

Under the

Nov.

US-UK

loan

ing Britain at the war's end wa9
the great indebtedness

14,

posed by

to other countries represented by
the so-called blocked sterling. Tho

agree¬

latter are nothing more than bank
freely convertible into other balances built up by Argentina,

sterling is to be

currencies without discrimination.

(Continued

page

459)

total of

United

decontrolled; Instalment sales

Kingdom 4%, 1960-90

Rhodesian Selection Trust

the total then

reaching only $790
The prewar high was

credit obviously is of
millionr"
importance -'to * average
$1 billion 800 million.
Restriction

the
the

control

are

expression

credit

now

accompanied
that

stands

"consumer

GaumontrBritish

-y

4'-

>3 A
^

prewar

Goodbody & Co.

level;

peak"; that, therefore, it remains

British Securities Dept.

is restricted very heavily:
1. As compared with its

;

(Continued

page

471)

streamlined

Members JV. Y. Stock Exchange and Other Principal Exchanges
115 BROADWAY
NEW YORK 6, N. Y.
Telephone BArclay 7-0100

practical

Scopliony, Ltd.

Against

Instalment sales credit therefore

all-time

Centered

Instalment Credit

Teletype NY 1-672

matters of operations and
policy.
Chief
interest of

savings bank
attending
this
first

executives

mid-winter

tion-wide
on

conference

basis

will

BRITISH

na¬

centered

problems of investment, pub¬

lic

and employee
relations, and
mortgages. The meeting has been

arranged on
plan so that

panel

Sullivan-Waldron Products Company

SECURITIES

discussion

all

delegates will
have an
opportunity to participate
and submit questions on matters

BOUGHT

•

SOLD

COMMON STOCK

QUOTED

•

Manufacturers of the Nationally Known
"WHIPSTER"

of current interest.

Mutual

tute

one

savings
of

the

banks

oldest

banking institutions
try.

This ,year

will reach the

ing

thrift
been

five

group of
in the coun¬
more

MEMBERS:

institutions
more

which

NEW

YORK STOCK

PROSPECTUS

REQUEST

EXCHANGE

banks
25

century mark, mak¬

BROAD

total of 80 of these mutual

operating

100 of

HAYDEN, STONE & CO.

consti¬

have

continuously

STREET, NEW YORK 4, N. Y.

F. H. KOLLER & CO., Inc.

CORRESPONDENTS IN
LONDON

for

MANILA

•

AMSTERDAM
BUENOS AIRES

SHANGHAI

•
•

Members N. Y.
111

AND OTHER

Security Dealers Ass'n

MONTEVIDEO

years.
EUROPEAN CITIES

BROADWAY, NEW YORK 6, N. Y.

NY 1-1026

BArclay 7-0570

1FDIC Assists Bank
YTbe Federal Deposit Insurance
Corporation has decided to ex¬
tend

financial
National Bank

aid

the

First

of Lemont of

Dual Transfer

Il¬

linois to facilitate the
assumption
of its liabilities
by the Lemont
National Bank.
•
•
,

Corporations, their stockholders
and underwriters find
in

Northern TrustC^
.

our

well

transfer agency

brokers

services

NEW'YORK and NEW JERSEY
advantageous

and economical.
•

Announces Promotions
*.

Arden Farms

Agency Services

We invite
your

transfer problems with

Managers.

Corporation

Guaranty Trust Company
'

Fractions

$2.40 Conv. Pfd.

you.

ILL,—The follow¬
promotions have been an¬

Walter W. Bonge front
AssistantManager to Second Vice-Presi¬
dent; Ross A, Gustafson and Af¬
ford H. Scott, Assistant

Polaroid

Raytheon Manufacturing Co.

CHICAGO,

ing

nounced in the Bond
Department
of the Northern
Trust Company:

Company

Common & Preferred

opportunity io discuss

BOUGHT—SOLD—QUOTED

iKrgtstraranh Srmtsfer (En.
ESTABLISHED im
2

RECTOR

STREET

NEW YORK 6, N. Y.

WHitehall 3-1404

15 EXCHANGE PLACE
JERSEY CITY 2, N. J.
*
BErgen 4-8525 • ;

One of the chief problems fac¬

creased

credit increased only $119 million
in-the~ same period ending Oct. 31,

Ar¬

Background of the Issue

2476 and 2496).

ment of last year
made

for

Argentine Monetary and Trade
Agreement (which was published
in

unfavorable

said area, of its sterling balances
an amount equivalent to the

ment. Thevio-

lation

were

gentina, Argentina may further¬
more dispose freely, within the

the : US-UK

account credit which has reached

this all-time peak. Just as it did
so,
the Reserve System decon¬

violation of

the minor por¬
sales credit, has

reaching it, hence needs the
control.
Actually
it
is
charge

supporting continuation of

:>y''

in^the

The

con¬

fast

To add to the confusion printed

More than 400 officers of

yet the public is permitted to
think that this minor portion has
reached an all-time peak, or is

result of the disclosure

k3>-

that

openly arrived at. But the contro¬
the Exchequer versial provision of the
AngloHugh Dalton, Argentine pact in effect offers an
in a "person¬ inducement to the
Argentine to
al" note reply¬ "buy
British," it is being said.
ing to an in¬ That provision reads as follows:
quiry of Mr.
(6) If in any year the balance
Snyder, admits
"of payments with the sterling

freed the major portion of control,

trolled

o r

Chancellor

over

consumer

)-•'

embarrassing to Secretary of

consumers.

Nation to Confer

conference will be a
affair with emphasis

have

curbs

Savings Bankers of

the regulation
has been re¬

Cheyney

moved to all intents and purposes.
Some who have opposed credit
that

of the 25 year group.

tained control
tion of

has been

une"

sumer
credit
outstanding.
The
Federal Reserve System has re¬

Federal

mere

longer. Charles B. Harding, senior
partner of the firm, presented a
gold wrist watch to each member

one-eleventh

"Herald Trib-

"Inflationary

trolled, is only about one-tenth

from

New

Instalment sales credit, the seg¬
ment
of
sales
credit still
con¬

of the
regulation

Reserve

its

'inflationary

s\/s

the Treasury Snyder has arisen

Threat"

and

Smith, Barney & Co., members
of the New York Stock Exchange,
last night held a dinner for its

and

„\-\t

:—..

•

Unimportant

the

terms

Smith, Barney Honors
25-Year Employees

firm

> *

threat."

pur¬

chasing
credit,

important

con¬

sumer

scope

the

An. incident which has been
very

Regulation W of the Federal Reserve System has become a con¬
lately for several reasons. It is the regulation, of course,

directors and stockholders for ap¬
proval. Mr. Bogie is a director of
the Froedtert organization.

with

fused issue

ompanies.
The plan of merger will be sub¬
mitted to the companies' boards of
c

associated

"inflationary^ spending, and infhcts discrimination against low-

income

merger be¬
tween the two

of making sterling freely convertible without discrimina*
tion, and o£ UK to liquidate the blocked sterling debt.; Mr. Bratter.
characterizes as "wanting to have our cake and eat it too" our
prevalent insistence on full sterling convertibility, while opposing
tariff reduction.

purpose

buying constitutes an important inflationary threat,
only one-tenth of tota^ consumer credit out¬
standing. Holds present partial restriction causes shifty not ending,

agreement

inducement to Argentine to "buy British" contravenes fundamental,

it comprises

asserts

Rock&

that instalment

Inc.,
Milwaukee,

pany,

wood

Correspondent notes embarrassing implications of Chancellor of
Exchequer DaltonY admission of technical violation of US-UK
agreement embodied i» Anglo-Argentine Pact. - Asserts fetter's

Mr. Cheyney points out despite public's
misconception, the 12
major products still fully curbed comprise practically entire field of
consumer durable
goods. Answering Reserve Board's argument

sto'ck holders
of Froedtert

and

By HERBERT M. BRATTER

Director, Retail Credit Institute of America

principal

Grain

British Violation of Loan Pact

By WILLIAM ,1. CHEYNEY

be-

tween

•''
'■ * ." *
''''' ' °r,
*

Decontrolled

cob-

ducted

." ' >'

Instalment Credit Should Be

Mordh M.

•.

MBiCaMttBEClAte&ItlNANClAKCHRONICLE

New York Hanseatic Corporation
12(1 BROADWAY,
TelephoneBArclay 7-5660

NEW YORK S, N. Y.
Teletypes NY 1-583

Thursday, January^ 2?,

THE COMMERCIAL & FINANCIAL CHRONICLE

396

Department of Justice Contrasts
Help Small Business

Anti-Trust

:15I||S

Northern States Power

principal asset the
entire common stock of Northern States Power of Minnesota.
The
Delaware company, controlled by Standard Gas & Electric through
ownership of a small amount of the A stock and substantially all of
the Class B common, must be dissolved under the Holding Company
Act.
It has a rather top-heavy capital structure, the two preferred
stocks having a liquidating claims'

veterans.

the

asked

courts

pass

The

new

plan would

company

increase the allocation of common

stock of the Minnesota company
stockholders of the

to: cbmmon

Delaware company from* 9.56%

ferred

stockholders'

the pre¬

recently

16.72%.
filed

committee

plan which would give the
class A common stockholders only
5.35% of the common stock (the
class B stock would not receive
a

fenife

obtain

the plan is put into

effect. IT conditions are

favorable

(as they were a year ago),

the

used to

Minnesota stock might be

retire

the preferred stocks

unexchanged balance sold to

the

public

cleaner-cut

would

This

syndicate).

underwriting

way

for the class A

participaHoWeVer,^ if market condi¬
tions

continue

unfavorable some

(as in the

special dividends from the earned

percentage allocation

surplus of the Minnesota company

plans recently submitted, and

and pay off

original

official

adopted.

Judging from past his¬

ferred
and

stocks

$8.62

Now

the

its pre¬

arrears on

($10.06

the

the 6% stock).
class

stockholders

small

plan)

may

tory, it may be some time
the final

of the
competitive system of private
enterprise.
the

unit, Attorney General Clark
business

small

"the

that

stated

authorized, insofar as the
law
and
budgetary
limitations
permit, to invoke all the power
which Congress has conferred to
maintain full opportunity and free
competition in business. We are
particularly
interested
in
the
problems of veterans seeking to
engage in new business or to re¬
establish enterprises which they
abandoned to enter the armed

unit is

forces."

the

before

Trading Markets in Common Stocks

Service of Indiana

Birmingham Electric

Public

Consumers Power

Puget Sound Po\yer & Light

Light

Southwestern Public Service

fidence
that

not

business

small

treated

and

con¬

necessary
man

couragmg and
definitely re¬
tarding prog¬
ress. They are
worse

Hamill has been

designated chief of the small busi¬

unit, under the general su¬
pervision of Edward P. Hodges,
Chief of the complaints and small
business section of the Anti-Trust
ness

division.

Northern Indiana Pub. Serv. Com.

111.,

Marshall^

and

lawyer

29 BROADWAX..KEW XORK
......

„

Qirect Wirt to Chicago

6. N. Y.
,

Separate National

portant differances. All had this
common:
their chemists and

others

able, conscientious

sion is

that

appear

Dr. W.F. Zimmerli

scientists

were

workers

having

has

the

men

been

high

same

standards

ethical

average

country. As

our

proven

in our melting

pot, no race, language, nationality
creed has a monopoly of ability
morals. Given the opportunity

Richard W. Bosworth

merli

Bosworth
with

ciated

Joseph Co.

members

Ball,

become

and

York

New

&
an

means

tives.

with its own

economy

is conscious

lack

trade

:and

Patent practices

human relations.

differ materially over

years

artificial

have

developed an ;

grouping of peoples on *,

the basis of language, race or

(Continued on page 449)

1947.-*

And National Affairs

and

Kraus

prior

tional City Bank of Cleveland.*

By EARL O. SHREVE*

Vice-President, General Electric Company

officer of the Na¬

of lost op¬
of Golden Rule in assist¬
ing distressed and backward countries.
In domestic affairs, notes
lower production efficiency and excessvie wage increases leading to
prices that tend to destroy markets. Condemns economic experi¬
mentation as threatening private enterprise, and calls for greater1
public interest in political and economic affairs. Sees danger in
present labor situation, but concludes, if labor is thoughtful and
cooperative, we should achieve a high and durable prosperity.
Asserting world is in chaotic state and 1946 was year

portunity, Mr. Shreve calls for application

Karl H. Schewe Wilh

Talcott, Poller & Go.
I L L.—Karl
Schewe, member of the New
and
Chicago
Stock
Ex¬
changes, has become associated
with exchange member firm of
Talcott, Potter & Co., in their Chi¬
cago office, 231 South La Salle
York

Street. Mr.

Schewe was formerly

partner in Robinson & Co. Prior

thereto he did business as an in¬
and

was

with

I think it is safe

after

every

must

expect

major
to

with agree that the world
state. History seems to indicate that

to say that we all

today is still in a very chaotic

we^

conflict

devote

Mitchell, stantial period to readjustment. It
seems

Waller H. Ingram Willi
(Special to Th* Financial Chronicle)

and

way

that

to permanent peace

our

own

great

nation

will have to provide leadership

this program.
We

have

has

made
been

was

with Prescott &

Co. and Dyer, Hudson

& Co,

the

prediction made many years

ago

of the end of

To
of

progress,

little

problem, mixed tip with
selfish attitudes jand small view¬
involved

one

two

with

areas

high

is com¬

condition

world

the

the world.

of the fundamentals

parable to the weather.
have

some

painfully

CLEVELAND, OHIO —Walter
H. Ingram has become associated and slow.
with Goodbody & Co., National
I suppose it is natural to have
City Bank Building. Mr. Ingram
to exercise a great deal of pa¬
was
formerly with the Federal
Reserve Bank of Cleveland and tience, because it is a very much
prior thereto

bringing about the fulfillment of

imperative that we

peoples of the world, thus

all the

sub¬

When we

reasonably close,

barometer

one

place and a very low pressure

the other, we

have the basis of a

storm.

Likewise, with the

severe

world
we

small as it is today, if

continue to have low economic

areas

one

place of the world

like India, and

other places . on .a

points. But it must be successful;
high economic plane such as: buy
otherwise, due to the Advance in
own country, we have the basis
CHRONICLl!) v}„
science, we will probably, destroy
of continuing tension, which air*
Edward E.

E* E. Mathews Adds Five
tO ;iTHl' FlNANCIAL

BOSTON; MASS.

—

Street, have
*An address by Mr. Shreve be¬ jways~ present£:the,|^
John ; W.
fore the Annual Meeting of the
Campbell, ;" Robert
B.
Higgins,
It seems to the; .therefore,r/that
Merton M. Keller, Daniel J. Masse, American Society Of HCWff Engin¬
Mathews Co., 53 State

added

their ;" staff

;and Robert % <)-Neil.

eers,

15; 1947:

the various >

Conditions evolved over y

borders.
many

currency,

of its raw materials .
them, has different>-

pertaining

laws

■'

A Look Into World

was

gaining advantage over
through.intrigue and colludeeply rooted as a standard
of
accomplishing objec¬
Each nation has its own

method of

asso¬

Commerce Building?
the

Burge

thereto

European

OHIO—Richard

has

Exchanges. Mr.
formerly manager
research department for

the

York,

New

Schenectady,

ciety,

Jan. 15,

Stock

Cleveland
Bosworth
of

Chronicle)

Skall, Joseph, Miller

& Co., Union

hddress 1>y I)r. Zim¬
Eastern New York

before

Section of American Chemical So¬

; CLEVELAND,
W.

♦Part of

the

built up of a

provided here, all hsjve ,contrib-

Financial

Comparing

each show im¬

(Special to Thee

Economies

European and the •
United States economies, the fact
i

of the National Bellas-Hess.

With Skall

economy
is
number of jealously
guarded autonomous nations with
separate economies is of primary
importance. These nations are the
result of generations of revolu¬
tions and wars. The traditional

Company,

advan¬

which

and Secretary

Rubber

;| (Special

Gilbert J. Postley & Co.

one

to be the neces¬

but

Lincoln Building Common

equally
toward
progress.
(Having the same potentialities,
European chemical and industrial
progress was and is greatly affected by the conditions created
by differences in the organization
of human affairs.)

country
en¬
joyed all of

manufacturer,
formerly
counsel for the Firestone Tire and

former

•

Federal Water & Gas Common

Hamill, a native of scientific

Mr.

Goodbody in Cleveland

American Gas & Power Common

uted

now.

While

find

1879

■

Chalmers

Mr.

Conditions in Europe before the war were entirely different from
in the United States.
From our point of view they were dis-

Trust laws before he can come
us

those

sary
require¬
violation of the Anti- ments of the
to industrial
age,
with his problems."
conditions
in

proof of

dividual

ESTABLISHED

and diversified regions and markets, we have

have

Ilutchins & Co.

Paine, Wemm. Jackson & Crans

area

on a large scale unhampered
by boundaries. Sees an economic onion as. Only hope of stabilizing
European economy and averting another world war, and concludes
large European nations are willing to submit to dismemberment in
order to become part of large economic unit*

those

assistance

for

Tucson Gas & Electric

large

Attorney

plan is consummated.

our

been enabled to develop industries

General tages of the
Berge, in charge of the Anti-Trust American
division, declared: "Each request e c o n o m y
Assistant

CHICAGO,

Federal Water & Gas

of
;

announcing the creation of

Delaware Power &

handicaps in European economy due to |
barriers, nationalistic prejudices, and wide differences in cur- * ;
rency and patent laws. Says this has contributed to European eco*
nomic anarchy and distress, while in the United States, because
trade

small

assis%t

free

(with

any

anything). The Delaware coifipany;
would also be required to

unit

yard sticks prevailing

thejttiarket
at the

this issue.

Dr. Zimmerli points out

WASHINGTON, Jan. 22 (Special
the
"Chronicle")—The AntiTrust division of the Department
to

business

E. I. du Pont de Nemours & Co.

„

of Justice has established

Representative,

Former European Technical

business and the promotion

of ap-» are expected to come up to bat
proximately $92,000,000, while the again with a new plan (formerly
class A stock (341,551 shares) has several groups presented plans).
Lehman Bros., who are substan¬
a market valuation of only about
$13,000,000.\ While there are also tially interested in the class A,
729,167 shares of class B stock, have recently obtained from Stone
this is entitled to only 10 cents & Webster a report on current
per share in dividends for each and future earnings power Of the
company.
Stone
&
$1 on the class A, hence the stock Minnesota
would normally be equivalent to Webster (according to the "Jour¬
only about 73,000 shares of class A. nal of Commerce") have estimated
Because substantially all of it is earnings available for the Minne¬
owned by Standard Gas, it was sota common stock as follows as
proposed some time ago to elimi¬ compared with the management
nate it from participation in the estimates:
Manage¬
plan but the question of such
ment
participation now remains unset¬ Year Stone & Webster
1946
$8,835,000
tled.
$9,129,000
1947
7,190,000
8,011,000
; It is obvious that the class A
*7,467,000
8,200,000
stock is in the "high leverage" 1948
1949
*7,757,000
8,731,000
class of holding company equities.
1950
*8,320,000
9,373,000
It sold as low as V/s a few years
1951
*8,820,000
10,225,000
ago but advanced to 50 in 1945
£?id 73% in ;1946 hS new'plans
*Assumed, not estimated.
were proposed giving it increased
Obviously, if earnings for 1946
participation in a division of as¬ were
capitalized at only ten times
sets.;; Several of these plans were
(which is probably too conserva¬
introduced in the Federal court
tive since the Minnesota company
in Minneapolis after the official
is well regarded), there would be
SEC-approved plan had been sent little or no
equity available for
to the court for ratification. /Fi¬
the class A stock.
On the other
nally the SEC, in effect, cancelled
hand; if earnings were capitalized
these plans aldng with the "offi¬
at fifteen times, the equity for
cial" one. While the management
class A stock might -go as high
then submitted a new plan, it got
as $100 a share.: The outcome is
into a legal tangle with the -SEC
dependent on the plan finally
over the question as to whether
adopted and approved by both the
the plan
should, be considered SEC and the courts, as well as
"voluntary" or "involuntary," and
(including call premiums)

it has

By WILLIAM F. ZIMMERLI*

help

of U.S.and

European Economy

establishes

particularly

petition,

Northern States Power of Delaware has as its

division

unit to maintain free: com¬

new

194^

.) .^(Continuedon;p^e417j

-Number 4562

Volume^ 165

THE COMMERCIAL iiFINMClAt CHRONICLE
improve organization and admiri-

Problems Facing Banks

and

President, Federal Reserve Bank of New York

welcoming N. Y. State bankers, Mr. Sproul

and not be "a free rider/'

Holds banks

all eligible bank$ join Federal Reserve System
strapped to fixed interest rate pattern and modest

urges

not

are

rise in short-term rates may be

relationships and work
I

portunity

glad to have

very

welcome

you

anti-inflationary. /Urge*/banksestablish sound/ labor-management
efficiently to establish high real incomes and shorter working hours.

once

ployee confidence.

York.

Over

the

years

New York has :•/" i

become

and- more

Federal

Re¬

87% of all
tional

enal.

banks

and trust

panies

ing

e m

•

have

com-

the

are

greatly

Dur¬

shortened

working

/■/

Allan Sproul

; -our banking machinery, over the
past thirty' years; every eligible
bank should be a member, not a
*

Britain's Economic Troubles

incomes and

almost

com¬

are

the

interfere

material: effect will be

in December still goes.

to Interest Pattern

/ Not Strapped

I do not think the fact that the

;

President, in his budget

message,
debt policy designed
interest rates at present

referred to
hold

low

levels, or the fact that the
Secretary of the Treasury said, in
..his recent annual report to the
Congress, that no anti-inflationary
purpose would be served by rais¬
ing interest rates at the present
time, commits us irrevocably to
the continuance
of the
present
fixed pattern of rates for Govern:

ment

securities.

defrost -the

fect of the reorganization is

v/5/

rate and

think

Einzig

though Britain would ever
coal exports on a

too, have to carry on amidst
great difficulties.

ers,

the

are

Unlisted

continue

time when

short-term

■

IMPORTANT
AND

ANNOUNCEMENT TO

modest rise

nor

to announce

Company

Members* of the New York Stock
and Other
322-326 Walnut

resume

'ExclidngtSPP;
Registered Exchanges

Street, Cincinnati

EVERYONE INTERESTED
BONDS

AND

We take

pleasure in announcing

have

not

EDMUND

BROWN, JR.

FINANCING
as

Vice President and

sioned by either the President or
/ the Secretary/of; the: Treasu^to"
interpret- their views for ; them,

/ balloons.
A/
-

keep-a/Stock of trial
•

Labor

There., is.

•

V,2Kb

' '•:»

•>!?...

one

.other,

'••«*

V".ft*?O

might mention because it is a subi? ject in which I, and many of you,

This is a
I; time of ferment in employee-man¬
agement relations throughout our
economy, and bankers should be
s:
giving their best * thought and
/

are

deeply interested.

f their
nel

closest

attention to

problems.

r! you have
have been

think

•xnis

•

;

:*i.

York

State

comprenensive

reference

book

both

useful

and

valuable

it1 V

highway

$500,000,000 outstanding./
is

planned

issue

major refunding

Just

been

revised

Commission

bonds

The

are

pages

Publication

has

The

covering

...

(>.

*»';v

MANAGEMENT'COMPANY, INC,

WALL STREET

NEW YORK

important,

Cape

May

entailed

bound

considerable

durable

has

Bridge

loose-leaf

form.

...

•
.

expense

and'there

■

'
.

"try

on 10 days approval to those
requesting it on their "business stationery.-

/ -ri"/'C

announce

that i

MR. HARRY D. CASPER

■

A copy will be sent

pleased to

are

copied and

.? ;'-y-'

report

County

$5.00 for additional,copies"to' p 1
the cost of printing and:
binding. Immediate delivery, '

cover

•

projects

new

added.
and

/;/

of.'approximately

Pennsylvania Turnpike

supplement

size

the book

bonds
.

been

letter

have

issues.

and

charge of. $7.50 ...for'; single
.

that

supplements

v//'A//V

•

"•

■

-4

•*»?,

/•-' "

" ;

•

V'"

'V»

",L

'S'

•

«£ ' //

/1
;!

and MR. MAX MADER

'fN

$ A...,

;

are

now

our

associated with

V ;

Trading Department?

• -

CT;-"" Z.'■ :.|r.':

: ■•>■■■■

Municipal and Public Revenue Bonds

40 Wall Street

New York 5, N.

Bankers

***? *»

pertinent Information relative to 34 major tollV
projects

and

Association, New York City, Jan. |
ELtLti****■■**

-•

INVESTORS

been, and the results
conspicuous in terms of

New

50| i1947.

contains historical and

•.cs

address
of
Mr.
/ Sproul at the Mid-Winter Meeting
the

bridge

♦Welcoming

'»

Bridge and Highway Bonds

person¬

many

y&tf

:7-?

Part I

and

;

subject

INVESTORS MANAGEMENT FUND, INC.

•

[»>

Situation

Director of

FUNDAMENTAL INVESTORS, INC.

commis¬

been

♦

-rand I do not

the election of

Public Revenue Bonds

vS/ratesr-:'; These Anre^/ri^yA^eMonnL
I

.,Main .0560

large scale. In¬

HANDBOOK OF

comes; riot immobilized iri
strait ^jacket of a pattern of

views.

Department

time

,the

that

Manager - ot

Securities' Trading

and

and the' signi-

rates,

''-iY

Telephone WHitehall 3-6742.
ih

tv-;

.vi':' i'

busi¬

iVr. fry'5fit••

D. F. BERNHEIMER & CO., Inc.
-

a n

fraud prohibitions of the securi¬
ties act of 1933.

We have just published a

availability ; of credit* will serve,
^ anti-inflationary
purpose/ W(e
/ want to, be Yeady.'to net When/the

•

securities

requirements

ac¬

pleased

likely

low level of

ficance of that rise in terms of the

the

deed, supplies for industries and
domestic requirements are becom¬

MUNICIPAL REVENUE

re¬

ing leas and less adequate. Fac¬
tage of coal. Thjs output ^remains tories have to reduce their output
The
unsatisfactory. There is no sign or close down altogether.
whatever of any increase of ef¬ Government does not want to in¬
fort on the part of the miners. cur unpopularity by cutting down
Those who expected that the men supplies
for
domestic
require¬
would show that they would work ments for the sake of maintaining
with more zeal for their new em¬ industrial activity. As a result of
ployer, the State, than for the
(Continued on page 425)

STATE

ing for Jan. 23 in its Seattle office
determine / whether
MayPhinney Company of Seattle may

The main problem is the shor¬

Js now'a$sociatea with-us.as

Whatever the future may bring,
present it does- not look as

And produc¬

can

The Securities and Exchange
Commission has ordered a hear¬

interest

short-term

still have

Dr. Paul

you

i——

SEC Sets Hearing

—

CHESTER T. TERRELt

1^/^® ^^trimeriM^ to the*outpufc;

/ interest rates, I think there -wijl
be

have

you will have
good meeting and I hope that
you will have a good lunch.
1
a

beneficial,

sihee/it^will: be possible to

much

now

organize the .industry completely,
it; with-the latest -mri; take[ time/
and meanwhile the
temporary ef¬

policy, I'll send him a copy of that worse off than
speech—we have had it printed. they were at
All I need to say now is that what any time dur¬
I said to the New Jersey bankers ing the war.

pleasure

know that

and- equip

"to know what I think about credit

•

with

complishment of this purpose,

;

no change for the better.
The; 'psychological? effect of the
change d[ias: not b^ri/ favpr&bl^.
Beyond: doubt, in: the. long runti^s

speech. I- made a
n^tte?about'i^
I;?feel terioration of A
ihostv competent to discuss—credit economic con- v
policy^—and there is no need to ditions. 7 Con-A
ar e ?
repeat it here. If anybody wants sumers

end

has been

pletely during the '.winter./
/ '//.
\ T h e r e.A has *
to? makers been, C indeed,
speech last a marked de-/

| free rider. ^ A; A
!; At^amAiipt: going
.

It
here.

By PAUL EINZIG

;

phrased claims of
be Z allowed
; to
obscure this fact.
I
! '>
organizers

prog¬

possible to figure that
Coal shortage seen Britain's main. Electric power also
inadequate.
membership costs money; but I
Price situation seen improved. Black markets gone.
question it. And even if it does, I
would argue that this is a matter
BASLE, SWITZERLAND.—The wave of optimism, that charac¬
of broad general policy, not some¬ terized British
opinion a few months ago, concerning the progress
thing to be figured with a sharp towards re¬
pencil. The Federal Reserve Sys¬ construction,
former private coalowners, must
tem has proved itself, as a? part of has
vanished
reluctantly admit that so far there

■

our

lowed

our banks will be¬
eligible, and that all eligible

ap¬

half-century,

same

banks will become members. May¬
be

rivera^e
still

.hope that all of
come

even

to have increases about V-k

<$>

e r s.

Eventually

capita

per

real

cleverly

labor

five-day weeks ness as a
registered broker-dealer,
product of increased and to
determine whether an af¬
output per hour worked. That is
filiated Seattle company, Wash¬
true
of the: barikirig:/business/
ington National Company, Inc.,
distribution of our gains among which performs a service
function, should be permitted to
register.
various groups in the community. just as it is true of those: busi¬
The Commission charges thatHow have we achieved these nesses
which manufacture and
the May-Phinney Company
en¬
tremendous
gains?
We
have distribute the- goods
which
we
gaged in certain "manipulations
achieved them in large part by in¬ consume.
and deceptive" practices and car¬
creased efficiency in the use of
We all want high real incomes
ried out transactions that oper¬
our time, our materials, and our
and shorter
working hours/ or ated as "fraud and deceit"
upon
capital equipment. That is the way most of us do; but we shall have
its
customers.
The
SEC
also
we
must look for further gains. to
work, and work more effi¬
charges that securities of Wash¬
In so far as banks are
concerned, ciently* to deserve them and to gdt ington Chemical & Salt Corpora¬
them. My concern is that, neither
tion were sold in violation
of
failures of management be al¬
registration

na¬

four-

and

times in less than 50 years.

the

panies
m

the

expansion,

income

pears

banks

and trust

There has been

real

and over two-

State

increase

crease/in populstiorir the

System,
of

maintenance of high standards of
personal performance.
Increased

in our haste to use increased
production to satisfy immediate
consumption needs, and in the

when account is taken of the in¬

are now

thirds

our

ress,

income, has been phenom¬

five-fold

com¬

members

em¬

cer¬

been in the fitfulness of

United

during the present century,

terms

tional

and

State

the

na¬

the

progress

States

State.

serve

The

bank

that

increased

greatly

hours of leisure.

But the situa¬

presents a continuing chal¬
lenge; a challenge to management
and a challenge to our employees.

group, share with
other wage earners in- the fruits of
progress—increased real incomes
and increased leisure.
Our em¬
as

Our failures

hours and

tion

New

see

tainly heve ribt been iri the hiagnitude of dur gains.
They have

lack of strife and evidence of em¬

again to the Federal Reserve Bank
-

ployees,

ployees must improve the quality
of their work through education
arid training;: through better ac4
quaintance with the tools of our
craft,
arid
through; individual

op-^-

the

must be alert to

managers

istration, to place the best possible
tools in the hands of our
workers,

By ALLAN SPROUL*

III

Members of National Association of Securities Dealers, Inc.

BROADWAY; NEW YORK 4

? (s

„

BO. d-4970

THE COMMERCIAL ft FINANCIAL

398

Ralston Steel Ca^ Co4>-t- Cireu?
^chenlev;. Distillers Corporstion,
only—Max¬ lat,Lerner & Co., 10 Post Qffict 350 Fifth Avenue, New York 1,
N. Y.
well, Marshall & Co., 647 South Square, Boston 9, Mass.
Spring Street, Los Angeles (14,
Red Rock Bottlers, Inc.—Circu¬
Calif.
Studebaker Corp.—Study of in¬
lar—Hoit, Rose & Troster, 74 Trin¬
teresting prospects—H. Hentz &
Colorado Milling and Elev. Co. ity Place, New York 6, N. Y.Co., 60 Beaver Street, New York
^MemorandumL-Buckley Broth*
4, N. Y.
Rmkueil
Mauutaiiuring Co.-r
ers, 1420 Walnut Street, Philadel¬
AIso ; available is a/ leaflet of
Analysis—SteineV. Bouse & Co
phia 2, Pa.
v

Clary Multiplier

Recder-Broker Investment

Recommendations and Literature
H k understood that the

firms mentioned will tie

vleased

ssndinfet^tcd partiest>hQ f^Bowing liternture:

Corpr^^emo-

dealers

for

randum

Also

available

memoranda

are

Russell and Lloyd. S.
on
the Gruen
Watch
Co.- and
on
three
companies furnishing Stock, both formerly of National Philip Carey Manufacturing Co
basic products—Kneeland & Go.., City Co. and Lazard Freres & Co.
Board of Trade Building, Chicago —published by Associated Book
Commodore Hotel, Inc.—Circu¬
Publishers, Inc., P. Q. Box 3594,
4 111.
1
lar—Seligman, Lubetkin & Co.;
Washington; :T,; D.
W
Inc., 41 Broad Street, New York
Business Boonjs & 'Oeprtssisns copy (discount of-40% on -orders
4, N.Y.
,i
for 100 or more copies.)
—Including all wars from 1775 to

Shares—Memorandum

Building

Stanley. A.

Also

..
• ...
1§47—--a graphic picture of Amer¬ t-vJj;-.'-iWU--jv*'ffily:. " ' 'T'
Nathan Straus-Puparqutt, Inc.
Business and Financial Cy¬
cles—Security Adjustment Corp., —Memorandum for banks, brokers
ttK

available

circular

Brooklyn 2, N. Y.

16 Court Street,

Services

Dual Transfer Agency

York

New York

i-^ra^

Jersey—Registrar and
Co., • 2t Rector Street,
New York 6, N. Y.

74 Trinity Place, New

$'■

i.7<?

vi. '

.'X

*!-

Esky-Pads-^Memorandmn pad

6, N.

City Bank Stocks

New York

New

Transfer

Cwrie

dealers—Troster,

and

Summers,

profits—Laird, Bissell &

curities

B. S.

5, N. Y.

girl on the cover—
Lichtenstein & Co., 99 Wall

Street, New York 5, N.

Stock

David McKnight re¬
printed from the Quarterly Re¬
view of Commerce, University of
Western Ontario—G. H.
Walker

Market

161 Devonshire

comment

<a'Uv

veo

the Outlook for Busi¬

and the

Security Markets.

•

UTIcr& Mohawk Cotton Mills,

Corporatioi

SchHoley

Inc.

Circular

—

r—

Mohawk Val¬

Investing Co., Inc., 238 Gen¬
esee Street, Utica 2, N.:,Y..
ley

running in the Chromch
^rite to Mark; MerU. in qare

oeen

iefiii CSilinr Head of Swedish Liberal Parly,
To Give Lectures ai Columbia University
Will deliver six addresses first three weeks of next month

Mass.

Inc.—Field re¬

manufacturer of aero¬
nautical testing and servicing
equipment as well as equipment
for industrial hydraulic machin¬
ery—Lambuth & Co., 76 William
Street, New York 5, N. Y.

gen¬

"The Problems of Economic Stabilization." Another
outstanding European economist, Dr. Karl Polanyi, founder of.
historical Hungarian student movement, "Galilei," and author of
"Origins of Our Time," will teach courses in General Economic
History to graduate students at University next terra also.

Inc.y

eral theme,

Street, Boston 10,

Greer Hydraulics

4
-

—Brochure

Corp.—Study

Phoenix

General

port

Outlook for the American

tie
lenge to the barrage of pessimis¬
tic
statements—bulletin with a
Guide to

Analysis

—

of situation—May & Gannon,

York

Meeds, 120 Broadway, New

Lackawanna RR

—■

York

New

Street.

ness

W. Pizzini & Co., 25 Broad Street,
New York 4, N. Y.

—

Comparison and analysis of 19
New York City Bank Stocks with
1946 operating earnings and se¬

with the Varga

D» L, & W.

of New Jersey

Broad

■N. Y.

Foundation Co.

ican

and

Thursday,. January- 23," 1947

;

CHRONICLE

miiinuM pill m# IIUHM.i,

111.

Two outstanding European economists are coming by invitation
to

Columbia University, one to deliver a series of special lectures
and the other to teach as a visiting^
:—■

professor,- during

the

scholastic term which

coming

commences

Feb. 3.

was identified with the struggle
against the Heimwehr in Austria

since

He went

1929.

England

^ve *n 1933. He is the author ;of
list of suggested stocks for income
"Essence of Fascism" and more
& Co., 1 Wall Street, New York
end capital appreciation—Strauss
Greyhound Corp.
Circularholm,.former Minister of Com- recently of "Origins of Our Time."
5, N. Y.
Hicks & Price, 231 South La Salle merce of
Bros., 32 Broadway, New York 4,
Sweden, and leader of-He was also joint editor of "ChrisN. Y.
Street, Chicago 4, 111.
the Swedish Liberal Party, on the tianity and Social Revolution." He
Railroad Developments of the
Also available are circulars on
recommendation of the Depart-; taught at Bennington (Vt.) CqI-Week—Leaflet of comment—.-Vilas
.

Bertil

Ohlin, professor of econotmics at the University of Stock-

—

Handbook

Public

Revenue

Bonds—Part I—Highway and

Toll

New York

City—$7.50.

Street,

Houston Banks and Trust Com¬

•3

Keeping It
Investment"
supplied
by

"Making Money and

—The Know Haw of

material

—Basic

175

National: Association
of Securities Dealers

Wholesale Distributors
Middle

West
•"i-

—

Pacific Coast

SECONDARY*-MARKET

V Michigan 4181

State 6502
CG 99

' ii

■

Corporation—Descrip^

& Cow 231

Balfe Street,

South

States

head

the

Lubetkin

LA 255

•

available

are

memoranda
Hart¬

W. L. Douglas Shoe Co.;

Polanyi's book, "Origins
Time," Prof. Robert M.

ing to say: "Here is

book that

makes most books in its field seem
obsolete
event

outworn.

portent of

Here, at

rare

the times.

crucial hour, is

comprehension

Swedish

the

fresh

form

and

the meaning of human affairs. Mr.

Also available

are

Firm To Be Known As.

—<jlu Pont, Homsey Co., 31
Street, Boston 9, Mass.

Milk

tical

Application;"

12,

Feb.

Lanova Corp.; Mo¬

for
AntiDepression Policy;" Feb. 17, "Na¬

hawk Rubber; and Taylor Whart¬

tional and International Conditions

ford Empire;

for

Swedish

Co.—Bulletin
report
of
&
Co.,
120

Pfaudler

Steel; Purolator Prod¬

Iron &

ucts; Upson Corp.; Alabama Mills;
Diebold, Inc.; Pfauder Corp.

Wells-Gardner & Co., Com.

Program

Employment
Stabilization;"
18, "Employment Stabiliza¬
and
the
Organization
of

dealers—Ward

Feb.

Broadway, New York 5, N. Y.

"Jessop Steel Pfd.
•Seismograph Service Corp.,Com.

tion

?ml H.Davls &C&
1916

Members Principal Stock Exchanges

Chicago Board of Trade

Teletype CG 405
Rockford, 111.

-.,,.Cleveland, Ohio

Exchange,

Feb.

will

changed to Dreyfus, Jacquin & Co.
.

On that date Jack J. Dreyfus, Jr.,
of

member

Behrens,

the

and

Exchange, John

William

Nulty

will be admitted to general part¬

Power Co.

will nership and
Gladys T. Ohrbach to
Mann Audi¬
limited
partnership., Mr. Nulty
Street, New YorkJ5, N. Y.
torium, Ohlin will be introduced
was formerly a partner in Fran¬
by Dr. Frank D. Fackenthal, act¬
Fred B. Prophet Co.—Circular ing president of the university. cis I. du Pont & Co. Other new
Boston
&' Maine Railroad
—
Larson
& Tornga, The other five lectures will he partners were members of Drey¬
Circular — Walter J. Connolly & —DeYoung,
Grand Rapids National Bank given in the Harkness Academic
Co., 24 Federal Street, Boston 10,
fus & -Co., which is being dis¬
Building, Grand Rapids 2, Mich. Theater. The first lecture will
Mass.
•
:Co., Inc., 37 Wall

—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.

At the

given

•••:• * •

start

Utility
Consolidated Electric
Gas Pfd. — Comprehensive

*52

and

Public

Central
of

»,

10 So. La Salle St., Chicago
Tel. Franklin 8622

members of the New York Stock

lecture which

first

in Horace

•Prospectus Available on Bequest

Established

Portland Electric

Bausch & Lomb—Memorandum

—J. G. White &

Snap-On Tool* Corp., Com.

Indianapolis, Ind.

Our

Maclver of the Sociology Depart¬
ment at Columbia, has the follow¬

Society."
*

Of Dr.

Chicago

LOS ANGELES 14
650 S. Spring St.

135S.LaSalleSL

versity of London.

,'i' ' „■'

ie§o f°r two .years and is teaching
in the extension divisions of
Oxford University and the Uni-

now

delegation
to
the International Polanyi does not profess to be
Labor Conference at Philadelphia.
analyses of
writing history-*-he is rewriting
He will deliver six lectures in all
& Co., Inc., 41 Broad Street, New
Long
Belt
Lumber
Co.,
and
it."
on the general theme, "The ProbYork 4, N. Y.
Miller Manufacturing Co.
Also available are circulars on
le'ms of ^'conomic Stabilization."
Wellman
Engineering;
Fashion
;
Dates and topics of the various
.'Lime
Cola
Co.—Late
dataPark, Inc.; Upson Co.; and Osgood
lectures in the series follow: Feb.
Co.
j • - Thornton, Mohr & Co., First Nar 3, "The Economics of Overful
tional Bank Building, Montgom¬
Employment;" Feb. 5, "The Swed¬
Aspinook Corporation—Circular ery 4, Ala.
ish Theory of Unused Resources;"
The firm name of Lewisohn &
—Ward
& .Co.,
120 Broadway,
Feb. 10, "The Keynes Theory oi
New York 5, N. Y.
Parker Appliance Co.—Circular Unused Resources and Its Prac¬ Co., 61 Broadway, New York City,
Also

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CHICAGO 3

Columbia, i

Oreyfvs, Jacquin 1 Co.

For

UNDERWRITERS
>

of Economics

common

,fv>.

Argo Oil

Meviber,

will give the Julius Beer Lectures
the first three weeks in Febru-»

Grinnell Corp.—Research; item
ary
and Dr. Karl Polan.yi, the
Record —
—Goodbody & Co., 115 Broadway, famous Hungarian economist who
stocks; with
New York 6, N. Y.
;- t is now a British subject will teach
unbroken dividend record of 15
Also available is a research item
a^^graduatecourse in General
to 99 years
(all listed on! New
on
Rockwell Manufacturing Co.
Ecpnomj0 History and conduct #
York
Stoek
Exchange)—Waldseminar for students who want to
heim, Piatt & Co.,
308 North
do special work in this field.
R. Hoe & Co.;—Circular—Adams
Eighth Street, St. Louis 1, Mo.
&, Co., 231 South La Salle Street, ; ; Ohlin, author of the book, "In¬
^
Wall
Street Commentator — Chicago 4; 111.
ter-regional
and
International
Leaflet of market comment—Ben¬
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mittees of the League of Nations
nett, Spanier & Co., Inc., 105 South
Hydraulic Press Manufacturing
and in 1944 was in the United
La Salle Street, Chicago 3, 111.
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ment

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panies—Analytical comparison for
year ending Dec. 31, 1946—B. V.
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&
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American i Bank Note Co. and The

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;

Bridge Bonds with' supplements—
Tripp & Co., Inc., 40 Wall

Street, New

Wall

Hickey,

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and

National Bank

Co.—Year-end

Unterberg

Trust

analysis—C.E,

Co.,

Broadway,

and all the
A dinner for
precede the opening

8:30

others

Ohlin

will

p.m.

solved

lecture.

Sam

p.m.

of Jan. 31.

Lewisohn,

David

Heyman, Robert S. Byfield, mem¬
ber of the Exchange, and John G.

Born in Vienna of Hungarian
brochure New York 6, N. Y.
Greenburgh, all partners in Lew¬
Also available is
an
offering parents, Dr. Polanyi founded the
form—Fred W. Fairman & Co.,
isohn & Co., will retire from the
circular on Stern & Stern Textiles, historical •
Hungarian
student
208 South La Salle Street, Chi-»
firm on Jan. 31.
Inc.
"
"•
movement, "Galilei," in 1908 and
cago 4, 111.
~

study

and

analysis

SINCE 1908
,,,i.

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399

Wages and Industrial Progress
Sr';
'

•

By GEORGE W.

TAYLOR*:;/^^ ^v|^>

Pessimists
!

•,

routine

Professor of Industry, Wharton School, University of Pennsylvania

Former Chairman, National War Labor Board

Misreading Economic Signposts

CLEVELAND, OHIO, Jan. 16
recession in
view f • -:■?

This

1947.

Those who are predicting a
misleading the economic signposts,

are

xpressed
here, to-night,

Prof. Taylor points out lack of
competitive conditions and labor's

superior bargaining

tionships in last

power

year,

in industry have distorted

and have ignored effect of

competitive position of business enterprises.

"taken out of

competition" by fixing

.standard and by settlements
•

cases,

and asserts "there

wide collective

difficult."
ual

Advocates

rate rela¬

relatively low nation-wide

■?

higher standard in particular

if working out

a wage

reconciliation of labor-manage- i-

differences from legislation.

ciation.

*•
is

not

surprising that the

industrial and
i

social

progress

..,,opinions

t] this
.>

period. 4 A

policies most conducive to
the subject of widely divergent

wage

gaining

were

•

Merryle S. Rukeyser

it?

;

se-

to
a

complete

war

the

economy

economy," Mr. Rukeyser,
Who is author of "Financial Se¬
curity in a Changing World?" de¬
clared,
"The
abnormal
sellers'

encouraged - asa

Tnatter^jfiiatlp3aad£^^0lijc^^::Gp

peaee

lective;

? erful motivate

ing tforce
the

Geoi

for

than

decade.

United

States

Taylor

part of the search,

labor unionism and collective bar-

V-s*Ari .address' by :Prpf.VTaylor;
before the 25th

Anniversary cele¬

bration

of the founding pf ;the
Industrial Research Dept. of the
Wharton
School, University of

Pennsylvania,
10; 1947.

Philadelphia,

J an;

celerated pace.

Jy'Tf;.

business executives accept

the popular mandate for a return
to a flourishing competitive situa¬

tion,- they

the • im¬
pending transition along construc¬
can

tive lines.

manage

the

other

hand, if

junwise
resists

Employee Relations Expert Named Special
in UFE-A. M. Kidder t Go. Dispute

pressure
cost

action

group

reducing measures,
heedless trouble will be built up.
In face if the vast accumulated

Shortages

durable

consumer

gbod^iackiding bousing,there

can

be years ahead of fruitful
employ¬
THe New York State Mediation Board has
arranged to have John ment if we have the wit and
the
Cole, employee relations manager of a large New York department
courage to establish a balanced
store sit as a special mediator in
negotiations between the United
Financial Employees, AFL, and A. M. Kidder & Co. for a contract. Rational economy. .rThis must be
achieved through, intergroup co¬
Mr. Cole was selected at the suggestion of A. M.
Kidder, & Co. from operation, not
through class war¬
a list of names

presented by the union. A. M. Kidder

likewise have made

list of £ ^

but decided instead to pick
first choice from the list of the
union's
preferences.
The
first

names

employed by the banks of Great
Britain, France, Italy and other

Euronean countries in the event of

meeting of the contract negotiators
with Mr. Cole

ning.

was

State

held last

•?;?«;"
The UFE has
■

Labor

filed

Board

certification

eve¬

*P0'S

with

the

request for

the

could

& Co.

bargaining

strike

the

maintenance and

security employees which, it says;
with the Irviig Trust

threatens

Co. The New York State Mediation
Board

likewise seeking peace¬

ful settlement of this dispute.

;

agent for the employees of Asiel
•& Co., Wall Street bond brokers.
This

move

represents the first at¬

tempt by the union to push the
organization of the brokerage em¬
ployees here since the election

fare.;

"The

longer

public
relations policy. He recommended
that the new majority make it
that

for

^eill T.

Masferson, Jr.

term

outlook

for

not

operating in
interests, but

special

"the1 greatest

good

for

the

greatest number."

ican free enterprise through rigor¬
ous

,7;

federal labor legislation should be
undertaken primarily in the inter¬
of

ests

workers—the

gainfully

employed citizens. Even the rank
and file of

labor unions have be¬

come the forgotten men df the last
fourteen years of catering to pres¬

should be channelled through the
funnel of government spending,
i f'Excessive government spend-?,
ing/lessens Ithe: areai of freedoni;
and* discretion on 1;he part -of the
individual ? citizen;
The
citizencustomer is; the„ boss when he;
.

deals through private industry, as
he ! can take or rej ect proffere<i
"Sound
On
labor
legislation lies private goods -ahd services.
within the framework of Ameri¬ the other hand, government force
can
compels fhe citizen; willy, nilly, te
liberalism. Such outstanding
friends of labor as the late Justice accept and pay for, through: taxes,?
Louis D. Brandeis prophetically the- services offered by govern¬
sure

rather; than to

groups,

the

needs of citizens.

counselled against the assaults on

ment.

"The imperatives of the Ameri¬
free system,
as
contrasted
tration of the law. Thus it is up with the slave systems of Europe
to the new majority in Congress and Asia, require a federal econ¬
to make it clear that the revision omy
policy of balancing thd
liberty which came from onesided
legislation and onesided adminis¬

the

law

intended

contemplated

favor to

is not

employers,

;

can

budget on a vastly lower level of
expenditures, thus permitting the

accumulation of a sizable surplus
public service.1
■<
for debt reduction while taxes are
businessmen, they too
received a mandate in the last substantially; reduced,
"It. is sheer defeatism to tissiune
election. Their mandate is to re¬
turn to the American achievement that a jumbo, budget many times
of
providing the worker * with prewar budgets, are inevitable.
more
and better things in ex¬ Determining the size of postwar

but

for

"As

change for a week's work. The budgets constitutes economic poli¬
public will not be satisfied with cymaking of a high order.?
ness

Regarding busi¬

the services

supply of

the

and

other

tools

needed

Active Trading Markets in
■

ji*"-X

R. Hoe & Co., Inc.

"President Truman, in his

eco-

iiomfc report to Congress, made it

longer sees eye
CIO-PAC," Mr.
jlukeyser declared. He rejected
the ; propaganda - that
- industry
no

is opportune for establishing
harmonious

ditions

ishing

of.

Class A and Common Stocks

con¬

the flour¬
The

a * private
enterprise
The whole, world is
the: outcome
of
the

to eye with the

economy.

freeze

transfer

and

the

worldwide

trend

towaird

Organized employees of HerzJeld & Stem staged a sit-down!
;

which lasted

little

over an

hour

late

Monday morning in protest
against what their union, the Fi¬
nancial
Employees Guild, CIO,
said was an attempt by the firm
to renege on certain points in bar¬
gaining to which it had previously

Bond Club of New York

Chief of

ment of all issues in this

dress

;

The UOPWA has requested its

national office to

seek

for it the

support of the members of the
World Federation of Trade Unions

Class

Stockholders to

Circular

vote

29;

re¬

copies

Request

ADAMS & CO.
231

SOUTH LA SALLE STREET

CHICAGO 4, ILLINOIS
TELETYPE CG S61

General.Dwight D. Eisenhower,
Staff, U. S. A., will ad¬
a

INDUSTRIAL COMMON STOCKS

dinner

meeting of the
Bond Club of New York, at the
Starlight Roof of the Waldorf-

PHONE STATE 0101

Astoria Hotel

Aeronca Aircraft Corp.

^Booth Fisheries Corporation

Colorado

Baltimore Transit Coi Ffd*

Milling & Elevator Company

Deerfield Packing Corporation JPooie ^Brothers Gear & Machine

tonight (January

23).

Burgess Battery Co. Com.

Chgo.Aiirb. & Elgin Ryi Units
!

Corporation

BRICK

PAPER

MILLS|^;^

.,,

CENTRALELECTRIC&GASCOMMON

Hydraulic Press Mfg. Co.
did Ben Coal Corporation
*

Long-Bell Lumber Ccmpany

.1 * Miller Manufacturing Co.

Uarco, Inc.
;
^United Printers & Publishers, Inc.

] Oil Exploration Co. Com.

NORTHERN INDIANA PUBLIC SERVICE COMMON

Trailmobile Company

j
Bought

;

—

Sold

—

Company
Mac Why te Company—
Snap-On-Tools Corporation

TILE

Decker Mfg. Co. Com.

[ Howard Industries, Inc.

Hart Carter

capitalization January
plan available.

Gisholt Machine Company
UNITED

news¬

To Hear Eisenhower

agreed. The New York State Medi¬
ation Bo^d is seeking 3 settle¬
case.

the

turning out presses in record voluma.

HOUSTON, TEX.—Chas.;B; thev wage
among the employees of A. M.
Kidder & Co, and affiliation with White & Co., Rusk Building; has President:
the AFL.

manufacturer

and

magazine printing presses
country..;. Now booked to ca¬
pacity for more than two years and

collec¬

Spoils from the profit account to
:
/
account. - Instead
the tivizing. ;;;
urged
"Advertising should be used in
industry
to
announced
the
admission
of
promote
demand
for 7 products part as a cultural force to help
Neill T. Masterson, Jr., to part¬
through reducing prices wherever achieve the climate of opinion
nership in the firm. Mr. Master- feasible. Desiring to promote eeo- needed for a flourishing economy.
son has
ftbmic; balance; he stressed > in¬ Through careful word usage, busi¬
tion in the
creases in the money incomes of nessmen
can
emerge
from the
^hose groups which are currently handicap of the last fourteen years
relatively underpaid. Behind his of political blue sky when regi¬
was
confused
with
message • could be seen the wise mentation

oldest

paper

watching
American .experiment in continu¬
ing human freedom in face of the

"prices,

V-

make

quackery and on the philosophy > "Thus, it's no time to play poli¬
tics in a narrow sense. The occasion
pf class warfare.
.

are

conducting 'economic planning' on
a, grand scale through the budge¬
tary, fiscal and monetary decisions
which they make. The time has
passed
for
letting?; bureaucrats

the system flourish.-

econom¬

are

Rukeyser
said, "the revision of the Wagner dogmatically decree how much of
Act and codification of effective the year's output of the people

httack at Washington

spending,
through sound tax and mone¬

"Whether routine politicians
of the fact or not, they

economy in federal

aware

nation, the citizens are ready
and willing to provide legislative

"Specifically,'', Mr.

;

wellbeing of the
American people has been en¬
hanced .-by the new bipartisan

material

clear that he

Ghas. B. While Admits

constructive

alibis for failure.

' ;

■

tary policy.

Business

and

behalf

set

market, in which 'anything goes'
bargaining was specific
is about over. The happy days of
cur ity
and cally adopted as the approved in¬
;
mere
order takers is over. The
economic sta¬ stitution for introducing stability
customer is again getting into the
The
bility, even at into :• wage-rate.; structures.
and is becoming
the .possible policies which prevail in collective driver's*; seat,
cost of
some bargaining; have
^accK^r&gly^f^ ^ast|y^ihore selective as to price,quality, .and specifications. Thus,
diminution in come fundamental to a considera¬
the rate of in- tion of wages and industrial prog¬ the readjustment of a free society
dustrial prog- ress. Current struggles over those dedicated primarily to lifting the
living standards of the civilian
3 gress'* has
(Continued on page .453)
public is proceeding at an ac¬
? been a powsearch for

the

and

Rukeyser, who is author of

clear

economic

transition from

in i>

postwar

see

machine

•' \

are

E;;

''.' "As I

Mr.

with

men's Asso¬

sees no

sound

Outlook

supplement their technical draft¬
ing of new remedial legislation

Warehouse¬

individ- V

Policy
t

Public Relations

publican'majority in Congress

the

A merican

the

for

Referring to the implications of
federal eponomic policy, Mr. Ru-

"Financial Security in

conven-

lion

enthusiasm

^principles."

kev«er further, stated:
"Congress can contribute sub¬
Changing
World,'^counselled tbd new RC^ stantially, to the success of Amer- ;

- ■

author, before
the

create

Federal

and

•

economic

Republicans Should Improve Their

known

columnist,

policy is

combination of industry-wide and

ally

can

jhan of the Council of Economic
Advisors (to tlie President);

keyser,nation¬
>

wages can

Advertising

progress.

now

Merryle1
Stanley Ru-

Holds

social

help to adjust citizens to the in¬
stitutions of a free
society, and

;/;r;,

fdwin G. Nourse, formerly chairof the
rookings Institution,

relative

band and sound judgment of Dr.
••

address

lecturer
on

even

plant bargaining, and

ment

wage

wages on

strong reasons for supporting industry- ^

are

bargaining

■

Quoted

'
'
'

'■

-.V,

incorporated

-.v.

...

135 SOUTH LA SALLE STREET
y

ffi

CHICAGO 3, ILLINOIS

Telephonei Pearborft
$16} !

•.

>, 4 ?" ~

v.? !
r-

®f

•Detailed analysis available on request

;

COMSTOCK & CO.

acaxixn«®comeany

•.

' )

^Prospectus Available

DOYLE, O'CONNOR & CO.
:

Teletype: CG 12QO,
....

Chicago

;

New York

Incorpor*t«4r;;'';

Boston

CHICAGO 4

' V":

Milwaukee

Minneapolis

Omaha

Z31

So. La Salle St.

Dearborn 1501

Teletype CG 055

r;r. -

----v

.''if; J

■

•'
»•

-t"v*

'.fc.-i. t-i.:t

;.4oo:

THE COMMERCIAL Sc FINANCIAL CHRONICLE

these

loans to

50%

Thursday, January 23, 1947

of;tbeir

amounts up to $8,000. .In

tvi

-Wri-'fc1

who

or renting houses
committed
themselves

had

financially for
of time

extended period

NSTA Notes

the basis of their pres¬

ent

earnings would find them¬
selves running into difficulty.

By EDMOUR GERMAIN

;

growing among close observers of the real
estate situation in this country that it will be three years or more
before building construction can catch up with the demand for new
conviction

The

people buying

Real Estate Securities
i

i' K

fact, all

In fact, some estimates of the time which will be required
for any kind of equilibrium to be established between supply and
need in this field run up to as much as eight years.
housing.

1946, work was at least start-^
ed if not completed on approxi¬ However,
if the analysts who
mately 600,000 new permanent claim to see the same forces at
dwellings. It is known that by work now after this war that
Oct. 31 considerably more than were operative after the last war
half of these units had been actu¬ are
correct, then demand from
ally completed but how many this source, that is, from the
more
were
finished before
the people whose incomes are larger,
year's end of course is something will—at least after the short re¬
yet to be learned. In any event, cession which these analysts see
by any test that can be applied, as impending and which conceiv¬
the volume of building construc¬ ably many tenants and new home
tion last year can't be said to purchasers
may
be
able
to
have been exactly low. This is a weather very well—continue for
fact which is just beginning to several years more.
Starting in
be appreciated* What did make 1921, there was a great flurry of
home
construction
which
home construction seem slow and new
ha 1 ting was very likely the didn't reach a peak until 1925 and
greatness of the heed for housing. it would almost appear now that
Demand for housing space,; has there is to be a repetition of this
sort of thing.
indeed received tremendous; .ini-i
; - Part
of the current housing
petus "from the' desire for larger
shortage, in some particular areas
and more - pretentious quarters ? by. at
least, can undoubtedly be ex¬
people who now receive larger plained by the large shifts which
have occurred in the population.
incomes than
formerly ' but of

However, the burden of proof
for the imminence of

recession

lies very much on those who say

recession

ord

actually

individual

With

coming.

incomes

rec¬

high

SECURITY

DEALERS

THE

CAROLINAS

Officers of the Security Dealers of the Carolinas, newest affiliate
of the National
Security Traders Association are:

levels and department
President—Keating L. Simons, James Conners & Co., Charles¬
skyrocketing, just to
.
important busi¬ ton, S. C.
ness indices which could be men¬
Vice-President—E. B. Wulbern, R. S. Dickson & Company, Inc.,
tioned, the outlook is certainly Charlotte, N. C.
not as depressing as some market
Secretary—Allen C. Ewing, Allen C. Ewing & Company, Wil¬
observers would like to make out. mington, N. C.
That there may be room for some
Treasurer—I. M. Read, Frost, Read & Simons, Inc., Charleston,
caution and a great deal of pru¬ South Carolina.
dence in all business matters, in¬
sales

store

cite

rather

two

cluding real estate, goes without
saying. But, for that matter, judg¬
ment in business
and financial
matters must

should always be

CINCINNATI STOCK AND
At

and Bond

BOND

CLUB

meeting of the Board of Trustees, of the Cincinnati Stock

Club, the following officers

were

elected for the year 1947:

exercised.

materials probably

The cost of

determine

will

very

to which

extent

be erected in the

the

largely

new

homes will

future, most of

the market analysts agreed. Much

construction

the

took

that

•

course

this is not the whole, story.

accounted

for

by the very great increase in
number of families
during

the

Part

can

the

On the supply side, some
explanation for the scarcity of
quarters is to be had from the
war.

there

that

fact

construction

REAL ESTATE

ernmental restrictions of all sorts.

Continuation

SHASKAN & CO.
Membert New York Sfoclr Exchange
Members New York Curb Exchange

40IXCHANOEPI./n
-

"_r.

Dlgby 4-4950

M fsfstyp* NY 1-953 ;

new

entire

the

admittedly

year

was

done under the compulsion of a
desperation born out of an emer¬
gency situation.
People without

roof

their heads just had

over

obtain

somewhere

shelter

While this factor will

somehow.

undoubtedly continue to be pres¬
ent to some extent, the cost of
materials will certainly be an in¬

creasingly important factor to be
with.
The
prices of
building
supplies
are
falling
somewhat, it is reported, but as
the production and inventories of
these
materials increase, prices

James E.

Loveland, Jr.

Frederic

Madigan

Latscha

reckoned

supply- sidei new construction has will really settle to levels within
been
discouraged by the rigid the available reach of the vast
OPA" ceilings on rents and gov¬
majority of a home-hungry pop¬

SECURITIES
* ur

little

was

during

decade of the thirties. Also on the

last

place

the

ceilings

ulation.

rents, particularly in newly con¬
structed buildings, of course, will

only tend to prolong the shortage.
;
Should the much-talked-about
recession afflict the economy as
.

All the evidence would indicate

in -apartments

market

the

that

dwellings of all classes will

and

continue

time

long

live

one

for

Economic

come.

predicted, however* much of the
for space would un¬ analysis points out the fact that

pressure

doubtedly subside, especially in
more depressed areas. In some

the

Firm Trading Markets:

laces, the ;< housing, shortage ;of
would even be transformed

£
oday
into

California & New York

abundance

roof rather than under the many

Real Estate Issues

under which they live today. The
veterans who now have a record

of only 1%

default

their obli-

gations in connection with prop¬
erty purchases under the GI Bill

J S.
I5S

aussr &Co*

Montgomery St., San Francisco 4

Tele. SP 61 & 62

EXbrook 8515

Rights, it is said, might start

The govern¬

losing their homes.
ment,

however,

has

tivity in at least this section of

Paul

guaranteed

Glenn

George

T. Grady

real estate for many years.

President—Franklin O. Loveland, Jr., Field, Richards &

housing

Panic would

cause many
families to seek shelter under one
space.

there must be a great deal of ac¬

Walling, Urchen & Go.

Co.,

and

troit

Hunter to

Ford

Treasurer—George T. Grady, John E. Joseph & Co.

Building,

the New York,

Chicago

will

changes,

2nd Vice-President—Frederic F. Latscha, Frederic Latscha & Co.

MICH, i- Watling,

DETROIT,

members

Co.

Vice-President—Jame^ E. Madigan, W. E. Fox & Co.

Secretary—Paul W. Glenn, Edward Brockhaus & Co.

To Admit H. Hunter
Lerchen

First

admit

Stock

Herbert

partnership

MEMPHIS

Ex¬

SECURITY DEALERS ASSOCIATION

The Memphis Security Traders

De¬

Club has elected the following

officers for the year 1947:

Jan. 30.

^Commodore Hotel, Inc.
Hotels Statler,

Inc.

^Foundation Company

Waldorf Astoria Hotel Common

Specialists in
.?

Universal Camera Corp.

*Circular

REAL ESTATE

upon

request

rf'

Seligman, Lubetkin & Co.
Incorporated

Members

SECURITIES

New

York Security Dealeri

Broad Street, New

W. Groom Leftwich

HAnover 2-2100

York 4

President—William Groom
Vice-President—Frank D.
tion.

OFFERINGS WANTED
Broadway-Trinity PI. 4%s, 1963 WS

Broadway & 41st St. 4%s, 1954
Gov* Clinton 2s, 1952 WS
Grant

C. H. TIPTON
securities corp.
Members o/ N. Y.

Security Dealers Asa'n

Lincoln Bldg.

National Hotel

5'/4 s, 1963 WS
Cuba 6s, 1959 WS

Common
Savoy Plaza 3s, 195$ WS
Pittsburgh Hotels

5%s, 1956 WS
Westinghouse Bldg. Part. Ctfs. CBI
West 42nd St. 4% 8, 1953

40 Wall St. 5s,

Bldg. 2»/2s, 1957 WS

Hotel St. George 4s, 1950

East

Telephone WOrth 2-0510

80 Broad St.

Thompson

870 7th Ave.

Leftwich, Leftwich and Ross.

Frederic, Equitable Securities Corpora¬

Thompson,

Bond
*

.y"..

Department,

Union,

TWIN CITY BOND TRADERS CLUB
The Twin

Bldg. 4s, 1956 WS

500 6th Ave. 4s, 1961

4^8, 1957 WS

City Bond Traders Club will hold its annual winter

dinner in Minneapolis on Jan.

31 at the NicoFet Hotel The Club will -

be host to about 60 out-of-town

traders, including officers of the'

Security Traders Association coming from Boston, Phila¬

delphia, Baltimore, Detroit and

Chicago.

included in the NSTA "Tri-City

Incorporated
Broadway

1966 WS

42nd St. 3s, 1956 WS

Amott,Baker & Co.
Tq|. BArclay .7-4880

Ed.

;

Treasurer—Edward

National

150

Mitchell

•

Planters National Bank.

Realty 5s, 1949 WS

111 BROADWAY
New York 6, N.

Secretary—Early F. Mitchell, Bond Department of First National

Bank of .Memphis.

Sherneth Corp.

Early

Frederic

Frank D.

Astodatlo»

Party."

New York 7, N* Y

Cocktails will be. had

Teletype NY 1-588
ner

iri

the

The Twin Cities is being-

in~the flemiepin Room attJjxm. with dip**

Junior, BallroonflTat 7 p.m. Fee

Ts $7.50.

Volume 165

Number 4562

THE COMMERCIAL ft FINANCIAL CHRONICLE
ceeds

used

for

working,

capital.

.stock of Stix, Baer and Ful¬
Co. to holders of record Jan.

mon

ler

10, 1947.

Scruggs-Vandervoort-Barney,

store in St.
Louis, on Jen. 16 filed
Securities and

Inc., which operates a department
a registration
statement; with the

Exchange Commission

for the issuance of

Rice-Stix

placed

per share and

dividends the 10,000 '
of 4%% cumu¬

lative preferred stock of
the Den¬
ver
Dry Goods Co. (which will
then be a

wholly-owned

ary: and

subsidi¬

(3) for general corporate

purposes.
The

preferred

share, will be publicly offered through an
underwriting
group headed by Union Securi¬
ties Corp., New
York; Boeetcher
& Co., Denver; and G.
H. Walker
& Co., St.
Louis, at a price to be
filed by amendment.
stockholders

Scruggs-

Vandervoort-Barney,. Inc.,
vote

Feb.

plan of recapi¬

talization, involving the consoli¬
dation

for

the

fiscal

this

corporation

Neybar,
Inc.,
subsidiary, into
which would

a
a

and

wholly-owned
new corporation
.

retain the

name

Scruggs-Vandervoort-Barney,

Inc.
each

Under the proposed
plan,
share of present $5
par value com¬
mon
stock
would
be
converted
into four shares of
$1.25 par value

Aireon

year

For the nine months ended Oct.

profits

before

taxes

approxi¬

mately $3,965,000, as compared
with $3,465,000 in the
preceding
year. Net after taxes totaled about

$2,400,000,

$3,95 per share on
584,792 shares presently outstand¬
ing, as against $1,063,000, or $1.65
per share, in the fiscal year ended
or

$2,824,773,

that

City, on Jan. 15 announced
eight banks, which provided
a revolving credit
during the past
year, have agreed to participate

of $2,850,000 for taxes, of

with

442,

the

Reconstruction

The

latter

had

bank

credits

been

Dempsey-Tegeler
same

city, the

pro-

On Jan. 15, the

Co.,

Waterworks

Independence,

Mo.,

called for redemption

has
Feb.

City of

Marshall

$85,000 of its airport bonds
City National Bank &
Trust Co. of Kansas City, one of
twelve bidders!
The bonds bear
sold

the

1V2 % interest, and were sold for a

premium of $157.25.

Now Russell & Saxe4
Russell

The firm name of Biel,

60 Broad

Saxe,

Russell &

New

has been changed to

York City,

Members of the

Saxe.

Russell

the' same,

remain

firm

Street,

10, next, all of its outstanding

Safferson and Sigmupd Saxe

ing partners.

mortgage

4^4%

12-year

be¬

Manufacturing
Jan. 13 filed

with

the

Exchange Com¬
under which it pro¬

mission,

to issue $290,000 of 4%%
debentures, due serially
from 1948 to 1957, inclusive, the
poses

serial

proceeds to be used to redeem

Ambassador Inv. pfd.

Kansas City Pub Serv. com.

mortgage
indebtedness,
pre¬
ferred stock, pay bank loan and

Berkshire Fine Spinning com.

Kansas City Pub. Serv. pfd.

Berkshire Fine Spinning pfd.

LaPlant-Choate

Chicago & Southern Airlines

Mid-Continent Air Lines

of the

notification

additional working

provide

capital.

Co.

Independence

;
v,

Securities and

have been resumed with RFC in

share,

Brothers

Fox

which

exchange the same, on
share, basis,, for new

net, after taxes

$3.80 per
preceding year.

letter

Washington.

preferred

per

This

$1,212,common share,

Co., St. Louis,

Conferences

program.

$10.39
stock.

...

Boston,

Bank

first

matured Nov.
30, 1946; (b)
to
place it in a current position with
respect to trade and other credi¬
tors; and (c) to provide sufficient
working capital for its 1947 manu¬

facturing

with

5-:

negotiating for long-term financ¬
ing (a) to refund its existing
short-term

common

in the

Corporation in a five-year refi¬
nancing program for the Aireon
company.

equal

the

compares

Finance

National

Oct. 31, 1945, on the same number
of shares.
■;<

June

Boston, Mass.

■

stock of Ritepoint Co., St.
Louis,
was offered
publicly at $7 per

value,

of $2,450,000 for taxes, were

serve

Manufacturing Co., Kan¬

company, the holders of the 6%
cumulative first preferred stock

$4.50

15.

Net earnings for the fiscal year
Nov. 30, 1946, after a re¬

ended

sas

and of the 7%

the right to
a share for

record

Nov.

The issue will be

un¬

derwritten by Dempsey-Tegeler

On Jan. 10, an issue of
42,500
shares of $1 par value common

cumulative second
stock would be given

declared

Jan. 15, 1947, and the
payable May 1 to holders
of record April
15, 1947.
Last
year, the company paid 75 cents
per share on Feb. 1 and Sept. 3,
and a special of $1 per share on

com¬

stock of the consolidated

common

1947,

31,1946, the company reported net

therewith

second

pared with the company's sales
of $3,244,953 in the preceding
*

a total of $1.18%
per share
for the fiscal year
ending Jan. 31,

due

series

bonds,

1948, at 100 and interest.
Pay-*
ment will be made at The First

compared with 50 cents
for the previous fiscal year.

stock

$7,152,625,

This disbursement will

make

ac¬
two

cordance

Consolidated

1946

stock

common

has

quartely dividend basis and in

stock,

per

will

sales

amounted

the

outstanding.

❖

which will be of no
par value,
and have a stated value of
$100

per

year.

$4.50

The

cents
then

its

Co.

dividends of 50 cents per share,
the first payable Feb. 1 to holders

unspeci¬
fied number of shares
of $4.50 cumulative
preferred stock series A,
the proceeds of
which are to be used
(1) to satisfy the appraisal
rights of shareholders who
objected to the company's plan of con¬
solidation; (2) to redeem at $105 ♦>

outstanding shares

Goods

Dry

•

Co., St. Louis.
*

sis

Jan.

25,

k'.;

•

•>

>';\v

Collins Radio

year-end extra
dividend of 50 cents per share is
payable on the $5 par value com¬
a

Mississippi Valley Barge

Consolidated Dearborn

Old Ben Coal

Dazey Corp.

St. Louis Public Service "A" T

com.

& pfd.

Delhi Oil Co.

Southern Union Gas

Ely & Walker Dry Goods

preferred- stock of no par
and each share of 3%%

Suburban Propane Gas

"j*/

cumulative preference stock would
be exchanged for
9/ lOths of a
share of the new $4.50

'* P

;

'" i" ""

Gulf Public Service

preferred.

Co., St. Louis, on Jan.115
declared two dividends of 10 cents

UNDERWRITERS

—i

SCHEUCK, FICHTER COMPANY

•

Jan. 24 and May
15, 1947, respec¬
tively.
This,
it
is ; understood,
places the stock on a 40-cent an¬
basis.

Last

the company paid two
10 cents each—one

and the other

subsidiary,

amounted

after

was

Newhard, Cook

Jan.

net

for

alone

$298,-

per share.

all

charges, in¬
contingency reserve of

cluding a
$100,000, and
the

with

compares

Johansen

Garfield 02M

SL 456

L.D. 123

dividends
on

July 5.

753, equal to 94 cents

Landreth Building

Bell Teletype

year,

Consolidated net earnings for
the fiscal year* ended Oct.
31,
1946, including those of the Val¬
ley Shoe Corp., a wholly-owned

This

Velvet Freeze

ISTRIBUTORS

each, payable Jan. 31 and May 31,
1947 to stockholders of record

dividend

Taca Airways

Hearst Consol. Publicat'ns A

The directors of Johansen Bros

Shoe

nual

,v....

...

f ^-Members—fi

<U"..

St. Louis Stock Exchange

FOURTH & OLIVE STREETS
Bell

Teletype SL 151 & SL 152
Correspondent and

Private

ST. LOUIS 2, MO.

Wire

J-.
^

State and Municipal Bonds

L. D. St. Louis 340, 341 & 342

Clark, Dodge & Co., 61 Wall St., New York 5, N. Y.

United States Government Secnrities
Bonds of Federal

System

company

*
*»£• r
Exchange (Associate)
,

Neib York Stock ExchanNetvYork Curb

Chicago Stock Exchange

Co.

Agencies

$81,633 for the year
ended Oct. 31, 1945, equal to 31
Bell Teletype—SL 186

Long Distance—160

Private Western Union Telemeter Service

175 COMMON STOCKS
Primary Markets

Bank &

Insurance Stocks

York Correspondent

to Chicago

Enterprise Telephone

with unbroken dividend record

to New

BOND DEPARTMENT

of 15 to 99 Years

*Stromberg-CarIson Co.

AH Listed

Mid-Continent Airlines

New York Stock Exchange

Copies Available

••COMMERCE

MERCANTILE
on

Request

Bank, and

Trust

ST. LOUIS 1

^Pickering Lumber Corp.
'>
'■

•

f:j. > "

■

;'•/

WALDHEIM, PLATT 6- CO.

•'

Members

Trailmobile

Direct

New

Gruen Watch Co.
!

*CIyde Porcelain Steel Corp.
*

Statistical Information

'ky.,

New

308

Common & Preferred
Wire

York,

Chicago

North 8th

and

St.

Louis

Stock

Exchanges

Company

MISSOURI

St., St. Louis 1, Mo.
NEW

YORK

Telephone

York

Central

CORRESPONDENT

14 WALL STREET

8400

Request

Metropolitan St. Louis

COCA-COLA

COMPANY

Members

Chicag6 Stock Exchange
;; Stf Louis'Stoek.Exchange

Direct

and

•.

connecting private wires-^

Chicago, New York,

Kansas

""-'

y •

Los Angeles

Telephone CE 0282

Louis

Central 8250

SECURiTiES

509 OUV6

Mo.

WM. F. DOWDALL & CO.
Established, 1932

•

}STR6CT^.-

St.Louis l#Mo»

City,
■

j•

319 NORTH FOURTH ST.

.Teletype SL 477

INVESTMENT

718 Locust Street

Saint

ST. LOUIS 1, MO.
•

Stix: & Co.

SECURITIES

White & Company

Teletype—SL 486

ST; LOUIS (2L MO.
Teletype SL-68

Membera at.

Louit Stock

XzehangO

THE COMMERCIAL & FINANCIAL CHRONICLE

<402

; ■

Thursday, January 23, 1947,

ment is

of the 52 weeks of that
I have ;;taken ten cents out
dropped it in this
fruit jar; Now I have $5,20, which
company: - keeps;; mote ipohe^ Ibr is exactly the price of a new pair
itself than it -pays: to the Worker of shoes." He hauled out a new
iri; wages,; and -what is more, very pair and turned the money' over
few : companies have taken the to' -the company storekeeper.
pains to give their employees any ^NdW;"; he said,; "that/is exactly
facts on this subject. x
what'the company does to protect
*•:
Fred Crawford of Thompson your job/ Ine machinery you
Products of Cleveland has spent work %t. wears out/and unless the
a great; deal of ; time end thought: company sets aside each month a
■in explaining to his people some part of its earnings, to accumulate
or the vital facts about how the' the money with Which- to replace
income dollar is divided between that machine with a new one when

By HERMAN W. STEINKRAUS*
/,

>■:/

Terming present labor laws mainly a "hodge-podge,." leading industrialist hails imminent action of
Eightieth Congress in balancing them to protect people as a whole rather than one segment of society.
But lasting industrial peace can be brought about only by understanding, agreement, and cooperation
not by Iafws. To this end strongly: urges management make major effort constructively to give work¬
ers actual facts about their respective companies /including eff ect of-wages on it£ prices," proportions
of sales devoted to
great ignorance on

wages and profits* depreciation*and other reserves. Cites survey revealing Workers'
such matters. §jf|
Vl, '
' '
, ' ,
;
„

recent'national election was more
public protest against present industrial unrest than anything else,.
Many observers feel that our

and puts a de-

mand

our
1

government
while
some

upon

Washington to

;

apply

them¬

selves

m ore

vigorously

solution

this

■

number

problem.
All

agree

that

trial

is
but

peace

needed,
;

when

gin to

the.

indus¬

we bediscuss

means we

the

other

fellow

the

changing.

They want to keep as
much of their own position intbct
as they possibly can.

|
For instance, some labor leaders
| do not want to concede one inch
the

;

they have

ground

fought

; for and won, either by legislation,

j
>

* Abstracted from an address
Mr.

Steinkraus

before

today,

that might have been strung out

jay

Economic

longer period of time?
Now Mr. Reuther announces

over

j Club, Nevr York City, Jan. 9,1947.

Union leaders feel that such fig¬
ures

circumstances to be construed

offer to buy,

as an

nevertheless

indi¬

the

how

public feels.
the closed
shop is fully protected.'
I have every confidence that
our
80th Congress is 'awake to

offering of these securities for sale, or as

Under the Wagner Act

solicitation of an offer to buy, any of such securities.
offer is made only by means of the Prospectus.

or as a

The

important since

highly industrial State has taken
a vote on this issue, but it is sig¬
cation

not

are

nificant
This is under

it is

worn.

sooh*

have

out,, the plant would
'to ~ 'shut, down' and
out of work.'.'s
Certainly when a worker once

everyone would be

learns that wealth is created by
is easy for him to
understand the quickest way for

production, it

him to destroy

wealth is by stop¬
production for any cause.
When there is a work stoppage
brought about by a strike the
worker loses his wages, the stock¬

page of

holder who owns the business suf¬

fers from his investment and the

public loses by: not . being able to
purchase the product. It is the old
way of force instead of the mod¬
ern

these problems and that the pro¬

will be thoroughly threshed
out, so that for the first time in
gram

|i|ll- 45,478 Shares

many

years

fair balance

may

our

arrive at

labor laws

that'

they do not favor any
■segment of society, but truly
tect the people as a whole.

Birmingham Electric

Company

addition

the

labor

books-

our

Some of it

themselves in

men

large

industries

of these

some

are

new

Cumulative Dividends

Price $100 per share

(dividends accumulate from date of issue)

Company Facts Needed
If every management of a busi¬

pro¬

now

in this country will take its

ness

clarification.

needs

proclaiming the contrary.

KP«<f apnountant

inH

post men

prejudice

ment

the things
out to be corrected.

Broad Program

It seems to

The First Boston Corporation

fi
,y,»

••'••• t*

•

»•

•

\SR, C. Langley & Co.
'

Sterne, Agee & Leach;.

!A. C. Allyn and Company
'/r; 1

Blair & Co., Inc;

Incorporated

goes

to wages, and
to profits, and would then

have

series of conferences with

its workers to explain these facts

them

using

charts,

these

workers would know, and no

side-

out-

organization

could
cause
them to be willing to go on strike
for

higher wages in the expecta¬
tion that prices would not also go
up.

At the

same

time, if manage¬

but

doing so. - They are simply
ignorant of who gets how much
for doing what in a production
process,

Glenn Griswold made a survey

last

summer

which showed that of

alLth(&eornpany executives
this

viewed

survey

over

75%

expressed their belief that less
than 10% of their employees had>
a

reasonably correct understand**

ing of their companies- profits; yet
only 7% of those companies had

furthered/'Thf

workers
workers

replying to a national survey on
a question of how many had been
given any information by their
companies in regard to its future
plans
and prospects registered

having had

Such in—

formation at all. Is it any wonder
any
that Workers are
when

told

they

money

confused, and
should demand
strike, that they

do so?

}

In the face of these facts manu¬

facturers
what

should

longer think

manufacturer said to me

recently: "If I pay my help well
and

give them steady work, under

good working conditions, that's all
they can expect, and what's more
—that's all they are going to get."
In
vey

opinion
December by

recent public

made

sur¬

Dr.

Needed

workers

Claude Robinson of "Opinion Re¬

how they could increase their pay
by increased productivity without
increasing prices, then a really

search," in Princeton, New Jersey,
75.5% of all workers interviewed
should go beyond

done..

that in addition

show/ the

would

job

will

have

been

"/ ;

■

Ignorance About Reserves and

to getting ourselves out of our
present dilemma, we could '"-well
afford to put some thought on a
broader
program
for industrial
peace, unless we always want to
be patching up errors and apply¬

they believe that companies
furnishing good
jobs and oaying good wages, but
should help workers and the community in other ways too.
The

say

community regards a company a's
social as well as an economic
is very little information on
the unit. But the most important part
part of workers is about the re- of this survey, which has just
serves; set up by a company for i been finished/ is; convincing evi*
ing emergency measures;: Lasting depreciation and: replacement' of ! dence of the practical value to a
industrial peace cannot be brought equipment.: Some of you may \company of furnishing its employhave heard how Mr; Charles Hook ees;and the:community with mabout by legislation or compulsion
Depreciation

Another matter

j ;.;

which there

of the American Rolling Mills ex- > formation about itself.
This sui^can only be brought about by
better understanding, agreement, plained this- matter to , his em- vey:/covered six industrial cities
and cooperation.
pioyces." Addre§sin"g ^ group :of I throughout, the country and eight
The more I have studied the his workers one evening,5 Mr. Hook j nlants in each of those six cities,
subject in recent years, the more hauled out a pair of old worn-out The companies were classified acI am convinced that the principal dilapidated work shoes no longer ; cording to their policies: first,
Underlying cause of industrial cobn fit to be worn. He asked, them to ; those; comoanies *who paid good
wages and good working .condi-*
flict In an individual company ia imagine him to- be a worker - who
the lack of understanding of thO. had worn these shoes for a year, i tions, but who felt they had np
worker of the true facts about his but now they* were worn out, and further obligation to their emhe needed a new pair. Where was | ployees; second, those /companies
own company and how it operates,

4-it

Hawley, Shepard & Co.

Hendrix &

:
.<

Thorn ton, Mohr &

each

which goes

dollar

business,

constructive

that cry

may be obtained from any of the several under¬
only in States in which such underwriters are qualified to act as
in securities and in which such Prospectus may legally be distributed.

Copies of the Prospectus
dealers

prices,

of cents out of

the number

against

snH

tell them to prepare in chart form
the actual facts about its business,

the effect of wages upon its

was

the courage to correct

writers

year

surveys

upon ignorance of how business
operates. Most people who attack
business feel completely righteous

are'd0 lack miormation.

buy, whereas their leaders

one

laws, much

legislation'

still

careful

from

nomic frictions are based not upon

to |"

inclined

that

made they discovered; that; eco-

wag/'increase/'wlll ""'the He
r/icls ™ which t/T; have" | ^

when We try to correct the evils
that have crept in, but let us have

(Par Value $100 Per Share),
'/Entitled

Foundation^ last

Economic
states

are

getting the second chapter of ex¬
actly the spme story, namely, that
substantial wage increases can be
made by
industry without cor¬
responding price increases.
This
time, however, judging from- some
recent polls taken, the working

loosely and hastily
thrown together in war time with¬
out having been clearly thought
through as to how it might work.
Much of it was written by people
of little practical experience, and
those with experience were not
consulted,
especially
if
it was
thought they might oppose it. So,
step by step, we have developed
the present hodge-podge.
By all means let us not destroy
the
advances
labor
has
made,

4.20% Preferred Stock
1

■\

way of reason,

A report made by the American

January 17,1947

NEW ISSUE

■?

thinking.

want

...

of my pay and

H. W. Steinkraus

Everyone admits
there should be a change, but they

Yet

j iind leaders ;at opposite; poles in
their

the various elements of cost.

saying, "We shall press' for: wagfe enemies of "the profit motive have
increases without price increases.". made such
progress in preaching
"Yoir can'tc raise wagess and not their doctrine, that some ministers

domestic

one

2SVz-eent^n-hour- wage demantj,

raise, prices," says management." have even preached from the pul¬
"¥es> you can," says- labor.
Mr. pit to/ their congregation that for
their; running their, own 'business, Reuther adds a few phrases :aboixt' a company to make a profit is a
without any outside interference. "reckless profiteering" and "stu¬ sin.
:
And
Industry and labor will not even pidity of business leaders."
Another subject about which the
so it goes.
i
agree as to what has happened
average worker knows very little
this past year.,
No wonder, the public is. con^ is that the
A5k ,.them> J<Why
largest part of the cost
were
there
so
But they are no longer
many
strikes?" fused.
of
practically
all
products
is
Manufacturers will say, almost to complacent.
Their
mood
has
w&ges; arid that substantial wage
a man, that it was a case of labor
changed. They believe there is an increases can
only be paid either
leaders ganging up against indus¬ answer to this problem, and they
by: increases in production and in¬
try'.
They charge that labor had want that answer found.
They dividual
productivity or by in¬
the government's help to make a demand action in no uncertain
creases in the price of the product.
concrete set of demands on a con¬ terms.
i
Every business man knows this so
certed nationwide scale, with no
thoroughly that he has taken it
Growing Unpopularity of the i
individual plant consideration in
for granted, ^ Yet much of the disr
Closed Shop
the program.
'
;
*
/;
cussion
of last
year; beginning
Ever since last August when a
The Complaint of Labor
Gallup poll was taken, public with^ Henry Wallace's annouiukr'.
was based upon the erronebeen shown to be ous
Labor.leaders say the plain facts opinion has
belief that very substantial
against the closed shop.: Eight,yiwere that the cost of livings rose
wage increases could be paid by
five per cent of people who were
so high, workers could not make
industry in general without price
voters and 58%;of union members tlVlrt'rOfiC'OCI'
A PfAl*
oil
rtf
both ends meet. They see nothing
increases.
After all of the bitter
wrong in nationwide strikes.
Is themselves were then- agamst ii experience, which
the
working
This sentiment is: now borne, ouit
not an organized plan of nation¬
man went,
through, as well as'the
wide strikes a better, way of -get¬ in ;the recent election results in
corporations,
one
would
have
ting results than thousands of in¬ those States where they have pro¬ thought that this economic truth
dependent and sporadic strikes hibited the closed shop.
had sunk in.
Yet

v es

strikes,

managements
feel
things won't ever be better until
we get back to the golden days of

represen-

t ati

favors,

year

dividends, that they both
upon the success: of the
enterprise for their own success.
Many a worker believes that tne

Why Not Industrial Peace?
President, Bridgeport Brass Co.

every one

depend

■

Mayes

Incorporated

Watkins, Morrow & Co.

Cty
il, J,

-t

V'' Jl i

''1*^ ^

Gaines, Brodnax & Brown

Barrow, Leary & Co.

Shropshire & Company

Webster & Gibson

Stockton Broome & Co,

Chattanooga Securities Corporation

well as lack of knowledge of

simple

j. H. Hilsman & Co. Inc.

Woolfolk, Huggins & Shober

economic

principles

business.

example, very few workers
profit of. labor is
wages, and the profit of invest¬
;

For

know that the

he to

get the money for a

new

who not only naid their employ^

ees well, hut also kept them well
pulled down from- a Unformed v about* the
company;
a
fruit jar and soilled 521 third, those companies who not
dimes and said/"Fortunately these only naid their employees^well
shoes/lasted-one. year, - and * "(Continued .on,-page. .481)

pair?
:

Then

shelf

tV olume -16 5

Number *4562 •5

THE* COMMERCIAL

& FINANCIAL CHRONICLE

Joseph F. Crowley Dead

Television Prospects

I'*

403

(Joseph F.;Crowley of 4 Fordal
Road, Bronxville, New York, a

,'jAj

governor of

Vice-President Zenith Radio

Corporation

possibly advertising has yet to blaze a clear-cuttrail. Warns against over-optimism as an
admtising medium and points out difficulties in creating television from:its basinets aspect. Foresees
no low cost television set that 'will
compete favorably with radios and movies* «( *j -

the age of

fn the radio manufacturing fraternity^-as far as television 4s<&
"concerned—Zenith has (insisted on wearing the red (carnation ,wheh( white is
only n relatively minor
v1'.— 'everyone else»
"v:.
phase of the whole picture.
was wearing a
aggressive promotion of low de¬
(The time has come for frank;
white one. finition black
and. white television discussion,
for : a
behind-ther
Quite frankly,
n the 50 mc
band; where it now scenes / explanation (:of * the basic
-

the
i

television

to¬

day is due to
the confliction
f

interests

patents

a n

know, and one of the
Communications ( ; Com¬

missioners has even admitted that
this band is only
temporary. Sets
sold for this wavehand will soon
1

>e( obsolete;

Converters

;he answer.

attendant

all

federal

arising from
the

:.s.

Reason^Thp ^public;

las

are

mot

already - been fooled several

times

maneuvering

try;

which pbsploteddihe few receivors
they had purchased in good faith.
There is no question at all about

market

position. (

You may not
H. C.

ana

by changes iri standards

Bonfig

agree with my, public
preference;; ipr (COLORJ
remarks, but I This is shown in the sale of home
endeavor; to. express m realr movie film;, where color'outsell?
istic point (of.(Vifc'yvland*J -Kopo ah black and( white
3-tp-l^ although;
>.

will

appraisal, of a subject 'that ,goes
;fceytmd .thevsai^-rdf ^;h.lfew((radi6
sets.

I; .1 (Jake it. for grahtedithat your
prirriai^.Interests in (tejtevisiprifis

^^(ahadvertising medi^*^®lll

it is

color, and the (only reas^
>on thatymorevare 'hot is
the'ouesr;
tion bt <^t)ST;

■;^oH6vef^''^re^nt'

bbhsumer.bury^

simplefun.dimehtal^ televisiori^vs^^black^
-

ing. (;One.. factor

isv.CbST'.;; The

*<othi!?4^
l against dt

.are

CmeULATlON and

-television-as.an advertising'^nedii;

:However, *1) i^ouidMil^JSio

wm.

point; rout right here that every-

the ratio;

thusiastic *televisionaries

h^e;beemm^heariy(3^

speculation.

tipnal

Television/ as aYha*

medium (or even as
;* powerful local medium) ?ol.enterr
tainment; education and possibly
V r advertising, : has yet to rblaze
>

clear-cut trail.
sK 4 Almost everybody wants televi¬
sion. The public would like the
%

entertainment, and opportunity to
view events

they occur. Educa¬
tors, statesmen, entertainers, and
other

interested

and

with

tives,
market

;

would

fire

told : that i pebpie v will /
buy
black and (white receivers how
and bO bOrfeetiy happy about(ex>

direct

that

would

distribution.
current

reason?

The cost of switching from DC

presented

large manufac¬
turer, for the mass production of
radionic equipment is the only
business
we
have. We do not
manufacture air or hair condition¬
ers, household appliances, or auto,

.mobile accessories; Alargemarke
receivers'^ Would be

(for/television

manna;

mariy areas,
the Chicago loop, direct
is still employed. ! The

to AC appliances is so
great that
there has been
strong resistance,

it than any other

efficient

new

make no mistake, gentle¬
Zenith wants television. We
probably stand to gain more from

came

But for

such

And

tp,

Then

economical,

the part of the public

toward,

making this change.

men,

■

current.

mo¬

by successful television.

Trade of Nations, The—Michael

A. Heilperin—an introduction and

guide

international

economics and

Another

example

frozen

standards is offered by the rail¬
roads. I know of several narrow
gauge
many

railroads
years

which

and

ran

rendered

for

inef¬

ficient service for the simple reas¬
on that the cost of changing tq

standard

gauge

was

too

•

great.

vSome^pgineergrsay-thatO^
roads'

would

from heaven

today

Xaferj ahd more
'.4, added (to FM, / it ;,W^ldtassuf§?(«fs.
IcOby Wid^

trade

and

vigorous point of

America

view on

York

22, N. Y.—cloth—$3.00.

give

development

was a serious mis¬

James M.
A

new

Leopold & Co.

partnership, under the

simple;";reasqn(thatc ttiere vestect;^in^iblbii^r(s^k:v£^
pre^ent staridard;gauge.
;;
( still;remains un solved, the, b a sic

The New York Stbck Exchange
has announced the following firm
changes: ,'' r
f'
Howard F. Fischer retired from

Filor, -Bullard

Smyth

'receib//

ei^lrfe;^rbhbSed^^^ by tKe(:^b|ic(/;
there
be

Frank Feinberg retires from
partnership in Otto Fuerst & Co.

Jan.

ori

31. :

;

My company's television transr

theF.New York Stock Exchange;
and J. Barrell Howe. Offices will

programs using modern transmis- be at527(Fifth Avenue. Mr. Leo
fipn. staridards longer than ♦any pold was h member of the former

Piher-televisioh

cduntry; We
$nal tests

transmitter in the

are

now

on our new

completing

ultra-high

transmitter, t and are
experi

patthership; which
Jan. 31.

dissolving

Mr. Howe was with W.

E. Burnet & Co.

btohdeasting.; television,
Mentally; in full color.

Kenneth

Apperizellar, formerly

with the investment firm of E. A.
& Co., died at his home
at ^the -age of sixty-four. Mr.
Ap¬
penzellar was a junior partner in

Pierce

the

brokerage firm of Swartwout
&. Appenzellar which was later

merged With E. A. Pierce & Co.

Cfocker With John G. Perry
•

(Special to

The

Financial

Chronicle) I

(DENVER;

COLO;

Fred

—

merly with Kamp & Co.^ Inc.

terrific

•

...

clamor.

public hands, "the industry: should

i ilovyKlet

This is under
*

all of the visionary talk we have

Homsey Co* Adds

j; (Special, tc Taie I^cna^cxm. ChrWiCII)

BOSTON', (MASS.

failure
*

of-television
/T'/V'

*!••.

f<-

ultimate
than -rthe
•

(v'3 (V

v.?Address by-Mr. Bonfig before
"Advertising
Executive
Club,"

Chicago, 111., Jan.T, 1947.

du (Pont,

Hqmsey & Co., 31 Milk Street,
hiave added John E. ? Cashman to
their staff.

a: > WW 4ft
v

;

circumstances

be construed

as an

offering oj these securities for sale,

qffttto buyiofui a solicitation offan offer to buy ^ any of such securities.
The offer is made
only by means of the Prospectus^ ■.

been

■a:,-':

new

ple|f;v::-;(^Television

enjoys both advan¬
disadvantages
that
radio, motion pic¬
tures, publications and other com¬
petitors-for popular favor, and
tages

* and
characterize

also

has

all its

characteristics- that

January 21,1447

140,900 Shares
Old Town Ribbon and

Carbon Co., Inc.

are

own.'

| Like the motion picture, televi¬

Common Stock

sion is limited by the camera lens.
Each scene must be in accurate

(Par Value $5 Per Share)

focus, and changing from short to
long range demands a change in
lens

Movies have the

camera.

advantage

here,

cameras can

because

several

be worked simultane¬

ously to produce film that will be
<lut
and
spliced
before
being
shown.- Like radio, television is
,

and

cursed

with

the

(And

Price $18 per share

fee

the first part of the show
again. Moreover, you have to

see

Over

see.

hand at

scheduled time to

the broadcast.

With

movies

yfeu have

ypur choice of time over
A period ,of several days;
.With
newspapers or magazines ypu can
Wait until you are ready to read.

(Yith4(radio

and

television

you

Copies of the Prospectus
writers listed in the
States in

may

be obtainedfrom

any

of the several under¬

Prospectus^ including the undersigned, only in

which such underwriters

are

qualified to act

*ucur*tbps'- anifchf u>)iic% intcft^ ptbspictus

may

dealers in

legally be distributed.

that is being projected in the tele¬

immediately concentrate, on "the vision studio. In either case
you
%
development (of full cOlor.: eqmp^ will see it at the. * moment of
be/ better ,ment which will at leasf give (the
brfeadpast or not at all, because

i \ No program could .;
designed ; to insure ( the

.
.

du Pont,

(color television/ withvitS

iinition

MM*

#' As An Adevrtising Medium

again$t;:ahybttempt'to change^h(| faayesrio such chpice.
w
improve-standards.
'•;(
||Teleyision gives you either an
/^jThere is today another^ prpblem
It is my considered opiiiiOn ihiatr
InstaMeous, unedited portrayal of
(^tb^titis being: blitheiy(;ign^^d^by ^OW^y^eh4them(::are^v^
events as they occur, or reproduc¬
exponents ;of television; npW. (it; is nor: neW; 'television receivers in
tion in your own home of a film

.the_ney^

Kenneth Appenzellar Dead

; 4 tjerrifi^^^

Dec.

31:

lows definition ;television
will

quality of immediacy. Action oc¬
economical:serv-( curs this instant, and is gone. If
'ypu \tuhe(in late, you can't wait

for (the;

fatal stumbling block", severa1

take) Zenith has been-wOTkingac- hame of James M. Leopold & Co., Crocker has been added to the:
4^ely (to make television a reality is being formed as of Feb. 1, by staff of John G. Perry & ' Co:,
f6r-the American home.-j
James (M/ Leopold, member of Equitable Building. He wos (for¬

blessed

(£si&ce^

1938, when Commandor McDonald

faster;,

g Extremely rich
^eh'.if "this-;is( tfuev:
vyears1 iri the future.,; Nevertheless
almost^(i^pssible
g we:; are ; yery dubfous (about Jthe changebecause'ofthebillionsin-

Weekly Fit-m Changes

interna-*

tional business power—Alfred A;
Knopf; Inc., 501 Madison Avenue,

hearing about this brand
medium, and look at teieviehahging them for .color receiverb xieh just as cold bloodedly as We
ih a; year or
so;; History does nof would a new ultra-fancy magazine
foehr out this Odritehtionr
Consider," in which we were considering the
ior^example;^tnereiectriO^
placement of some advertising.
power industry; In the early days
Eirst of all, what does television
generating and distributing sysr have to offer in the way of gain¬
tems were,
for - the most part, ing firends and
influencing peO-

without patent
welcome the

Bridge Bonds with supplements—
Tripp &?• Co., Inc., 40 Wall Street,
New York City—$7.50.

New York Stock Exchange

white

receivers WOUld ^havO a disastrbiiS
effect on public? confidence. 4-We

reaching the
public arO iooking eagerly towarc
the Opportunities this new medi¬
um will bring. Radio manufactur¬
ers,

Bonds—Part I—Highway and Toll

opposed * the
Making Money and Keeping It,
coming-of the railroad^ nor as a The Know-How of Investment—
li very stable owner who Predicted
Associated Book Publishers, Inc.,
failure for the automobile. Zenith
.ft O, Box. 3504;' Washington ,7t
is in -the television business- and
B;c.~$1.00 (40% discount on or¬
jbUs( been for many years. Since ders for 100 or more copies).

frequency

fenehce^tho^ie^Of^iahy^bbhsi^^
able number of black

b Q u t

Revenue

who

litittef, W9XZV, ha^ been oh the

the superb color television
demons
strated (by,vtDBS and the'
hes4( of
the V low
^definition' black ;• and:
white, the ratio, I bqlieVe, would

(these three;fundamentals is pure
•

: driver

of(34o^lf^Had 4hey|ae¥ Mf|y^^a^ntinuous;ppheduIo':p|

tOally^ebn^fhe-diffe

en*

coach

Public

pl'e—sight: unseen—voted for cblo#

tnev;same/ basic ^eleme^tsf that in fiuence the choice of all advertis¬

Handbook

((In doubting the immediate com*
success of television, t New
not- speaking as the stage¬

more..-costly
vWarned(the industry that launchAbout55 ^ Of aU feature picttfres ingxteleyision Without first pro¬
by .inajor-film producers are how viding a sound plan to finance its
done in

Curb

extended

•"

by false starts, in. the indus-^ nierciel"^

or.

problem that has tripped televi¬
sion in the past, and that is still
unsolved today. Only when this
problem is; solved cab ; we look
ior
prompt realization, of
the
bright television dreams, that have
peenxheld out to us for years.

50, after

illness.

much

York

York Stock and Curb
Exchanges,
died at his home Sunday
night, at

and

confusion

New

•

In discussingfuture of television, Mr. Bonfig main tains
big factor will "be COStill relation tn other
competing media reaching, public, and asserts tele vision as a national medium of
entertainment, edncation

the

Exchange and a- partner in the
brokerage "firm of Thomson &
McKinnon, members of the New

purchaser a run for his (moneys for the vast
majority of people;
There may never again :be-a time visual entertainment will not bear
in history when / a
change in repetition.
For
instance,
how
standards, can be made with < so many movies have
you seen
little
confusion
and
expenses second time? Compare that with
However, Color vs. black /and (ftUnued "ori page (477)

The First Boston

Corporation

THE

404

COMMERCIAL'^FINANCIAL ;CHRONICLR
".U'

"3.U/.CW *\*y

Revenue^ Bd. Handbook
Keeps Data-Up-to-Date
Two

Public

Bonds—Part 1—

Highway and Toll Bridge Bonds—
recently published by Tripp &
Co., Inc., 40 Wall Street, New
York City. These supplements are
u
revised study of the Pennsylyahia Turnpike covering the new
refunding issue, and the Cape May
County, Bridge Commission.
This

Handbook: is

greatly
needed and valuable addition to
the altogether too scarce central¬
ized

reference

knowledge
lic

Reporter

revenue

Governments"

By JOHN T. CHIPPENDALE, JR. E

week as in¬
vestors, traders and dealers re-entered the market.... The: reason for
the turnabout seems to have been the improved psychological atti¬
tude, brought about principally by the pressure of funds seeking in¬
vestment and the statements in the; budget message oh. the money
markets.
; A contributing factor undoubtedly was the announce¬
ment of the return of margin trading in the equity markets, the first
.

;

the mid-winter meeting of
the New York State Bankers Association, that the time will come
| when there will be a moderate increase in short-term rates,
dampened the enthusiasm for government securities and halted
the upward trend of the market, ... ... On Wednesday the tone
improved with the bank issues again the leaders. . . .
Central Bank official) last Monday, at

The

publica¬
detailed case his-

rise...,'.

market
limits

pretty

well within the
momentum may

issues above these ranges.,,

will

Policy

Our

and

domestic Economy. The seminar
^ill consist of fifteen sessions to

be held Wednesday nights from
Feb.< 5th, to May 14th from ;8:i6

district, that. a. good- trading market is expected during the year. . . .
a trading market is one that moves in both directions, there
probably not be too much hesitancy on the part of those that
have profits, to take them, if prices should move ahead at too rapid
rate.

...

University and toVnoncredit

•

•ftudents from professional, busi¬
ness,
a

and labor groups, 'who have

serious, practical interest in the

content of the

course.

No formal

academic training is required of

^oncredit students.
.

The fee for

poncredit students

is $40.50 for

the term.
as

for

Those wishing to enroll

application

blank

non-bank

the most, important factors in these exchanges, although
investors have contributed in no small measure to the

of the operations...

Institute

University, Washington

Economic

Affairs,

and the partially-exempts, were
well bought, with some of the out-of-town banks competing with
the metropolitan deposit banks for the latter securities. ., . Non-bank
investor, .which have bepn taking, on ce^tificates^ahd iSkprff^igible
bonds, are still in the market for- the?* issues. ,4.
,
.j.J,
On the other hand, for

the first time in quite a period, sav¬

sellers of fairly sizable amounts of the longer
eligible taxable 2s and 244s due 1956/59. .

ings banks

were

funds, according to reports, are being reinvested in the
restricted obligations.
Reinvestments of this type, which would
improve the income of the selling institutions, are likely to increase
as prices of the eligibles move ahead. . . .
.

Square, New York 3, N. Y.

stable bond market was

reassuring,

though it contained some words of caution, since a

stable

generally taken to mean a market that does not move too
violently in either direction.
.
Interpretation of the budget state¬
ment, on the bond market, in financial circles, indicates that there
is likely to be interference with the market by the monetary author¬
ities, on the up-side as well as the down-side. ...

market is

CURRENCY INFLOW

of currency from circulation in

The return flow

the past three

heavy, and this has no doubt helped to ease the
money market.
How long this trend will continue is a debatable
point, since the Treasury in an analysis of the wartime currency ex.pansion, looked for only limited amounts, to return to the banks. . . .
Nonetheless, the practical elimination of black markets, will mean
less need of currency for legitimate business.
.
Also, declining
commodity prices, greater supplies of goods, as well as clearance
sales, have brought and should continue to bring money out of hid¬
ing and hoarding.
These factors have led some to conclude that
the return flow of funds will continue for some weeks yet, in fairly
has

weeks

been

sizable amounts.

Although Federal will offset the effects of the return of cur¬
by the sale of bills and certificates there is always the pos¬

rency

.
.
. This would
beneficial effect on

sibility that it will not be done in its entirety.
keep

the

market easy, and have

money

government security prices.

DEBT REDEMPTION

Redemption of $1,000,000,000. of certificates on Feb. 1 is a con¬
cutting down outstanding debt and interest
charges.
The amount of the February certificates outstanding was
larger than any of. the other, certificate issues, and this retirement
brings it more in line with the others. . . . Although cash balances
were sufficient to take care of the redemption, it is believed that the
i

tinuation of the policy of
.

15 had an influence on the
decision to retire part of the February

income tax payments orv Jan.

heavy

monetary authorities in their
issue.1. .:. ••
1 •'
•
L

no.

•

;

change in

only and is not, and is under no circumstances
Common Stock for sale or a solicitation
of such Shares. The offering is made only by the Prospectus.

be construed to be, an offering of this
an

and'while

policy{ is looked fori at that time,* it would not d>e

trend of commodity prices and loans, will
...
Revival of rights could have an im¬

Business conditions,

be the determining factors.

market," particularly

portant effect on the
able issues. '.

the maturing or call¬

Removal of restrictions on margin
on

Feb.

tion of

othfer

controls..:

the money managers,

The end of the inflation fear on the part of

could have an important effect on the money

of the opinions on business conditions

to be held by certain government

appear

somewhere near correct.

turn out to be

Political

considerations were

economists, should

doubt very

important in

margins by the Board, since the amount

the sudden action

of bank credit that

will

into the stock market will not be large

markets...

that the way is being prepared to take up some
with

slack that would develop

of the

is likely to be followed by the elimina¬

markets, particularly if some
that

trading in the equity markets

1, is a definite change in credit policy on the part

Federal Reserve Btfard, arid

This advertisement appears of record
of

j surprisingiflateronin the^ yeair tjie - Treasury- mlghtrefund
1 some of the maturities, with separate offerings to bank holders
i and'.non-bank investors.
; - '• •' .1 ' / ,"
[.

It may be
to

<':.

.to be; the-next operation,

The March 15 114s seem

enough to affect the money

offer to buy any

seems

The eligibles, both the taxables

These

New York

;

MARGIN TRADING

BANKS COMPETING

Dr.

Harold W. Davey, Director of the

are

success

noncredit students should send
an

buyei^vioi^both-jtlio shorts and the lqdg^ . >; v .The^ commercial

banks

.While the statement about

Switching of holdings continues} tq ;hqld the-spotlight, as institu*
|||tb 9:50 p.m.
;
tipnS?se£k? to^adjust'bbsitibite-in brperrip get the maximum return
The Seminar is open to matri- tfrom-theif Securities;$ 1 '■$ % This has increased volume jap well as
eulated .graduate students of New activity and has given the market a good tone, since there are inter¬

Work'

continued low Interest rates"seemed to
have put an end to the talk of defrosting the certificate rate,
until President Sproul of the New York Federal Reserve Blank,
last Monday interpreted low interest rates, to mean a diversity of
rates, and not a fixed* pattern of rates, which could still allow
for somewhat higher short-term rates. ... It seems as though
there are still differences of opinion on money rates between the
heads of the individual Reserve Banks and the monetary author¬

SWITCHING PROMINENT

ested

The statement about

Since

Foreign

will stay

prices

trading areas although the

might be well to keep in mind the predictions of the financial

fairs , of :iNew York . University is
Offering a special seminar in U.-S.

that

followers

carry some

institute.of Economic~Af?

markets.

money

...

Despite favorable conditions, it is the opinion of many money

Special NYU Seminar

. . . These statements
government securities
official declaration of policy on the

the cooperation of the Treasury; and'Federal.
undoubtedly had a favorable effect on the

including
statistical
data
covering. 34 major revenue bond
The technical
position of the government securities market
projects with outstanding indebt¬
has been improving, right iilong, because there is a sizable demand
edness of close to $500,000,000.
In order to keep the subject that will not be filled for some time to come, and the floating supply
. Positions of dealers and
matter current, additional sup¬ of securities has been steadily cut down.
plements devoted to large scale traders are light and non-bank investors have not been disposing of
pew proj ects and refunding oper¬ eligible issues, particularly the taxables, in as large amounts as had
The demand for investments is usually heavy in
ations are expected to be issued. been expected.
January, and this year is no exception.
Also the large return flow
•Necessarily, publication of the
of currency from circulation has had a tendency to ease the money
booklet entailed considerable ex¬
markets, despite the counteracting moves on the part of Federal. . . .
pense and it is being offered by
fripp & Co., Inc. at a price of CAUTION INDICATED
$7150 per single copy and addi¬
Although the market is in good shape and seems to forecast
tional copies may be obtained at
higher prices, it should be remembered that there will not be any
$5. each.
wild upswing such as took place last year. . . . Not only are the
monetary authorities watching prices, but also are the institutions,
particularly those with eligible issues, that will be sold as prices

♦

president Truman's budget message assures, that1 there Will be a
stable bond market, through

ities.
^

However^ the- prediction by President Sprout of the New York
Federal Reserve -Bank, (speaking as an individual and not as a

and

IIS For'gn Trade Policy
And Domestic Economy

ENTHUSIASM DAMPENED

the subject of pub¬

Trade

. .

continuation of low interest rates and a

of next month. ;

tpry,

,The

sty. iM

Ill

markets, because here was an

Prices of government securities moved ahead last

material

bonds.

tion presents a

the Handbook of

Revenue

Thursday^Jfatiuary 23, 1947

-<» -t

II'.

COURSE OF INTEREST RATES?
>

ffOur

supplements have already

issued for

been

[.1 in..i

of the

downtrend in business loans, which

expected in some quarters.

NEW ISSUE

50,000 Shares

Sixtietk Anniversary /

—

Pantasote Company
Common: Stock

°f

Chas. E. Ouincey

($1 Par Value)

^Price $11.25

„

•5^*'^'. r* '• '^ •*

»5v',V

•

Copies of the Prospectus

may

per
t..

••

:.(<

...

be obtained from the«undersigned,4

•

■

"i i

■

yr.-i, ■

:; THE U. S.

" '

-r

Co.

♦

'.«•

january 18, 1887^-■: /:

'Securities
.f

■

Established

•

f -J

"■

*: 'v -v '

•

•'

v'-..^

GOVERNMENT

\'i

;; ;

and Its Instrumentalities"
'

P';: •; -V'v« <^"i :• y-::

Members

Van

Co.

Alstyne, Noel
fplpg;,
4

"-*•

*„

•

■ l»

"j'l'jl

If..I

a-^

•'

•

New YorkCurb Exchange f

ExchaNgb^-y*"

25 Broad Street
{

January 21,1947,

i;'1'

Nbw Y©rk;$tocr

"" ■
1

:^w York 4

Y. .v..:

Volume 165

Number 4562

THE COMMERCIAL ft FINANCIAL CHRONICLE

Canadian Securities
=

The

By WILLIAM J. McKAY

Securities

and

Exchange Commission has

announced

only one
day however the bearish fog suddenly lifted and the large volume of
exchange and bond offerings was more than offset by a resumption
of general demand.

shortly succeed William
Barclay," Jr.,- Stein Bros. &
Boyce, Philadelphia as President
K,

of the National Association of Se¬

curities

the

It is always darkest before the dawn.
During the past wefek the
market for free funds and Canadian internal bonds at one time in¬
dicated pnly gloom and lower prices. In the short space of

This strong reaction was by

who will

Study To Amend Securities Acts Resumed
By Securities and Exchange Commission

resumption of its study of the Securities Act of 1933 and the Secur¬
ities Exchange Act of 1934 to
"bring a set of desirable and workable
proposals for amendments before Congress."
inal study of the acts

was

interrupted by the

Inc., i Philadelphia,

The Commission's orig¬
war..

.Representatives of underwriters, issuers,
distributors, investors

to such

curities

could

extent

that

these

se¬

bought at ap¬
discount from

proximately 6i/2%

the Canadian price. Purchasers of
internal bonds consequently took

securities

participate

the

discussions.

could have been avoided had the

;

One of the major objectives of
the program,
according to James
J. Caffrey, Chairman of the

Canadian authorities taken justi¬
fiable measures to prevent the ar-

SEC,

bitraging - of Dominion of Canada
Canadian dollar bonds.

It i3 expected that a group of
representatives will be named by
large institutional purchasers of

nof-

unexpected. As a result of' nadian dollar in the unofficial
arbitrage operations of the past market and Dominion of Canada
few months internal bonds had internal
bonds in this country

brought down from Canada

President

the
National
Security
Traders
Association; and Clarence Unter¬
berg, C. E. Unterberg & Co., New
York, President of the New York
Security Dealers Association. K

means

been

Dealers, Inc.; Mr. Barclay;
Mosley, Stroud & Co.,

Victor

simplification of the registra¬
tion process. Another is to
get the

With the

official exchange rate established
at par, it is not at all surprising
that the level of the Canadian dol¬

information contained in the pros¬
pectus to the prospective pur¬

Canadian exchange purchased on

lar in the free market at 5% dis¬
count and
Dominion of Canada

ing^ the"cooling off"

market for free funds.

internal bonds

the arbitrage bonds instead of fol¬

lowing the usual procedure of!
buying the bonds in Canada with
As the free

rate during this period was quoted
in the neighborhood of 5% dis¬
count

there

about

1V2%

was

differential

the

favor

of
ar¬

buying

there

has

volume

voked adverse

delved

not

into

the

over

it would
been

the free rate.
appear that

Caffrey

ness.

E. Hopkinson, Jr.

Herbert F. Boynton

considerable

It should

abroad.

stand

comparison

in the

world, it would be

now

appears

have passed the peak.

soon as

it became noticeable also that the

from

this

country

view of

nadian

for

minion internal bonds.
ment

The

Do¬

move¬

sufficiently strong

was

erase

the

reflect

the

was

material

of the desirable

FIG Banks Place Debs.
A successful

demand

for

the differential between the

high-

offering of

issue

of debentures for the Federal In¬

dispropor¬

During the week apart from the
flurry in Canadian internal bonds
the only other market feature of
note

much

required. He added that

ments of the acts.

tionately on the Canadian credit
standing in this country.

developed

eliminating

objectives
accomplished
by ? the
'adoption of new rules, but that
others may require actual amend¬

simple

stock

demand

Caf¬

general can
with any other

matters

arbitrageurs to import Can¬

Mr.

Canadian stocks (which permitted
adian internal bonds) was also on
the decline, a sudden investment

period be¬

Commission,

some

task for the Dominion authorities
to remedy these relatively small

which

possible dur¬

may

the fact that the Ca¬

situation

The

heretofore

previously suggested,

Canada

which

the in¬

telligent initiative of investors in
this country to maintain the high
standing
of
Canadian
Credit
in

pointed out, has recently
taken steps to aid the
general ob¬
jective such as revising its forms

complicated

not be left to

rapidly

the filing of the
registra¬
statement and its effective¬

frey

case.

repatriation of previ¬
ously blocked foreign accounts in

liquidation

James

and

Free funds were weak at this
time largely owing to the absence
of bond

greater discount, has pro¬
commentary on the
part of casual observers who have

tion

even

tween

this country at

ramifications of the

bitrage bonds.

In addition

chaser

Wm. K. Barclay, Jr.

and securities

exchanges,

Victor

Mosley

C. E. Unterberg

the

well
as other interested
parties, have
been invited to participate in
pre¬
liminary discussions in order to
reach as large
^an, area of agree¬
as

termediate
Credit
Banks /was
made Jari.-16 by Charles
R.'Dunn,
New York, fiscal agent for the

commission
conferences.

its

banks. The financing consisted of

staff

$42,335,000 1% Consolidated de~
bentures dated Feb. 1,1947, and

for

An informal
grade medium-term externals in
preliminary con¬ due Nov. 1, 1947. The issue Was
ference was held Jan. 17 between
anticipation of the addition of
placed at par. Of the
-proceeds,
these securities tq the Savings
representatives of the investment
Banks' legallist. In view*of the ment on the proposed amendments banking industry and some of the $21,500,000 .will be used to retire
as possible. All those
wishing to commissioners. Among those par¬ $21,500,000 debentures, .maturing
scarcity. of offerings however a
negligible turnover was recorded. comment on the program of re¬ ticipating* were Edward Hopkin¬ Feb. 1, 1947 and
$20,835,000 will
vision are asked to mail a state¬
Canadian stocks were dull in sym¬
son, Jr., partner in Drexel & Co.
be for new money purposes*
As
The weakness of both the Ca- pathy with the New York market ment of their views to the com¬
Philadelphia, and President of the
of Feb. 1, 1947, the total amount
mission before Feb. 15, and to Investment Bankers
with the exception of the
Association
golds
which
maintained their
recent specify whom they represent and of America; Herbert F. Boynton, of debentures outstanding will be
whether they wish to meet with H. F. Boynton &
firmness.
Co., New York,

arbitrage bonds and the'4 bonds
purchasable over the free rate. As
a "cohsequence
there was' a re¬
sumption of bond buying of the
latter type which created a firmer
tendency for free funds.

$307,445,000.

Herrick Wadell Adds

CANADIANBONDS

(Special to

The Financial

Chronicle)

;

This advertisement is neither

otter to sell

nor

KANSAS

CITY, MO. —Delbert
H. Betts has joined the staff of
Herrick, Waddell & Co., 1012

GOVERNMENT

solicitation of

otter to

buy

any

of these

securities. The ottering is made only by Prospectus.

;

Baltimore Avenue.

PROVINCIAL

Miller

MUNICIPAL

(Special to

CORPORATION

119,431 Shares

McDonald & Co.
The Financial

Chronicle)

KANSAS CITY, MO.—James W.
Miller is with McDonald & Com¬
pany,

Frontier Power

1009 Baltimore Avenue.

(a Colorado Corporation)

CANADIAN STOCKS

TAYLOR, DEALE

Common Stock

& COMPANY

($5 Par Value)

64 Wall

WHitehall

A.E.AMES&CO.

3-1874

Price: $10 per share

f INCORPORATED
TWO WALL STREET

CANADIAN

NEW YORK' S# N» Y*

Street, New York 5

Copies of the Prospectus

SECURITIES

...

Government. t

NY-1-1045

may

be obtained from such of the undersigned

registered dealers in this State

Municipal

Provincial

RECTOR 2-7231

are

Corporate

Sills, Minton

Company

incorporated

Non-Callable

Straus & Blosser
$100,000

Canadian Pacific Railway Company
4% Perpetual Debenture Stock

Battles & Company, Inc.

Ferris & Company, Inc.

Chace, Whiteside & Warren

Shillinglaw; Bolger

Interest

payable semi-annually in United States Funds

Price

incorporated

-|i

Garrett-Bromfield & Co.
to

Wood, Gundy & Co.

Street, New York 5

Toronto

Montreal

Winnipeg

Vancouver

LondontElagland

Blair F.

Charles A. Taggart & Co.

Incorporated
14 Wall

January 22~1947

-,T

•„

;

& Co.
■■ - ■r

Lewis C. Dick Co

yield 3.80%

bioren & Co.

Butcher & Sherrerd

particular-' industries .or security
groups resulted in varying degrees
of fluctuation, from tfie steadies t
results achieved by the high-grade
bond and preferred stock series, to
the? wider
the varif
ous
industry series and common
stock funds. The opportunity af-f

By JOHN DEAN

Market Performance

funds for specialt

forded by these

Preliminary estimates for 1946 indicate that for the fourth con¬
secutive ; year, investment companies have again performed better

funds indicates that the

balanced

RAILROAD

full year 1946 asset value
for this conservative in¬

average

decline

vesting group was only xk of

STOCK

1%.

with 7.9% net de¬
cline in the Standard-Poor's In¬
dex of 90 stocks.
During the last

This compares

1946, when the Standardwas declining 15.1%,
value of the balanced funds

;

superior. market perform*

This

can so

consistently out-perform the

general market cannot fail to havp
tremendous appeal for individual

of investors.
Increasing general/ acceptancfe
by investors, therefore, is reflect¬

and other types

in sales of investing

company

Net sales for 1946 are esf-

shares.

timated at over

Poor's Index

pared with $182,000,000 for

asset

declined

Three

of only 7.4 %.
seven
balanced

average

the

funds studied actually

A CLASS Or

showed net

$200,000,000, comr

1945.
Particularly significant was the
experience during the last half ol
1946.
During this period, while
the general market decline wajs
occurring, redemptions of'invest¬
ing company shares by investors
were lower than in the first half

gains in asset value for the full
year
1946 —General Investors
Trust. Nation Wide Securities, and
Scudder Stevens & Clark.
of 1946.

/SECURITIES. Ire

prospectus

from your

Keystone Custodian Funds—Ef¬

Investment deafer or

Distributors Group, Incorporated

York 5, N. Y.

Jan.

Howell; CasProducts; Copper Range; Correll-Dubi ier; C' own Centra
Petroleum; Hecia Mining; Inter¬
national
Hydro-E'ectric Systerr
"A"; Lakey Foundry & Machnr.;
and Park Utah Consolidated
Mines.'
~

Bond

Manhattan

Nine

the

41* 'common

"A"

per

share,

capital gains.

:;'

Detroit StockExcL

Beefs Mew Officers
DOT

Stock

Exchange

the

announces

5s^ 1963/Directors have also

authorized

purchase of bonds a
as eligible foi

Airlines

American

fund.

the

National. Bond & Share—Net av

value

set

$28.67

was

per

31,1946 (after $2.39 per share
dividend from capital gains)
Dec.

compared with $33.23 per share
31, 1945. Assets Dec. 31, 194?

Dec.

distributed

were

follows

Cash, 5.8%;. Government securi¬
ties, 8.0%; preferred stocks, 11.8%
common stocks, 74.4%,

1946

income

farm

stock

Now

)

mentals

Affiliated Fund—Bulletin on po¬

Milton

Manley

1929
funda¬

with

these

•

higher than in

are

1929.

and

stock

approximate or exceed their 1929. tion;
:

end funds in this group are:

Views

all

that

shows
News and

3.6%. Open- earnings.

ranging from 0.3% to

120 BROADWAY, NEW YORK 5. N. Y.

80c

points out that industrial
prices are less than haiii
sition of capper.concludes th&t oil*
their 1926 high and 26% below
though the price of copper is his*their year-end 1929 levels. Indus¬
torically high, its statistical posir
tion- is strong, and: earriings
of tries favored: automotive, building
household supply, railroaa
and;
major ogR^ucers, even at prices
19% below present levels, could equipment and highway construc¬

Index.

investing companies are estimated
I to show actual increases in asset
values
for the
full year 1946,

SECURITIES &
CORPORATION

1960; and Illinois Central (Chi.
St.L; 8t N.&O.) Joint 1st & Ref

curities.

half

last

values.

RESEARCH

dividends

$0.4706 pet share has been desig¬
nated as ordinary
dividend in¬
come,
and $0.3295 as long-term

tibns to holdings since November.
1946 are: Boston & Maine 1st 43,

ing 15.1%, the common stock in¬
vesting companies showed an . es¬
timated decline of 13.4% in asset

.frospeetus"1 Upon request from
you investment (holer, or from &

total

George Putnam Fund—Of

1946

Fund-tAddif

During
1946, while the
Standard-Pbor's Index was declin¬
Standard-Poor's
the

NATIONAL

Groups Series, 5c. 1
J

17, 1947, Series S-4
added the following common
stocks to Reserve List: Anderson-

fective

studied

companies

om request

63 Wall Street, New

mated

Number of total investors in in¬
investing
National Trust Funds—Bulletin
show an es¬ vesting company shares is now
timated 3.7% decline in asset val¬ estimated at 1,250,000 sharehold¬ compares national income, retail
ues for
the full year 1946, com¬ ers, owning approximately
$2.5- sales, bank deposits, money in cir¬
pared with the 7.9% decline in the billion of investing company se¬ culation, industrial production and

The 41 common stock

millions.

half of

Group Securities, inc.

dividends, to be paid Feb.
/$T06 15; ;I947; Preferred Stock Series,
I4c; Stock Series, 14c; Selected

open-end investing com-

mutual

1947bythe:foilowingesti>

are Jan;.31,

Prichard Oil; Bell &

open-end

which

ex-dividend

funds, will sell

and Investors ing

£ahie$;vtyith

ization, of course, is one of their

(

Study of seven of the

Stock Fund, Inc.,

ors

Selective; Fund, Inc.,

basic appeals.

Is
■
.
ance by investing companies'once
Results for the full year 1946,. as estimated by Arthur Wiesenagain emphasizes the vdue lor tne
"berger & Co., show superior market performance by investment investor of the experienced manfcompanies generally, not. only by the balanced funds but also by the agement and diversification aft
Companies
investing
predomi¬
forded by investing companies.
nantly in common stocks.
Any medium of investing which
general market.

than the

^hiirsda^ January 23,. 1947

CHRONICLE

THE COMMERCIAL & FINANCIAL

,.>

Nationwide

•
•,,

•,

r*4

Dividend Shares—Folder shows

set

value

Securities—Net as¬

during 1946, first

year

operation as balanced fund, George A. McDowell Armin H.
Vogel;
declined
only 2.32%, compared
II Aug. pi,, 1939', to Dec. 31, 1946,
with 10.26% decline in the Dow election of the
following officers
panies in this group are: U. S,& net asset value increased 58.55 %./
i
International,
Lehman
Co* p., compared with 31.84% apprecia¬ Jones Composite Average of 65 for the year 1947:
stocks. Assets Dec. 31, 1946 were \
American Cities Power & Light, tion in the Dow Jones Industrial
President, Milton A. Manley, M.
distributed as follows: Cash. A.
Manley & Co.
U. S. & Foreign, General Share¬ Average.
3.41%; bonds, 29.03%; preferred
Vice-President, Armin H. Vogel,
holdings, General American In¬
Fundamental
Investors—Study stocks, 23.16%; common stocks,
A. H. Vogel & Co.
vestors, and Carriers & General. indicates that $10,000 invested ip 44.40%.
Treasurer, George A. McDowell, the shares Jan. 2, 1933 (inception
Selected American Shares—Net
The
specialty open-end funds
Mercier, McDowell & Dolphyn.
date) would now be worth $22,679 asset value was $11.76 per share
should be mentioned also in any in net asset value and would have
Announcement was also made
Dec. 31, 1946, a net decline of only
of the reappointment of John O.
review of performance for 1946. received $12,681 in dividends and
6,3% for.. 1946, compared with
MacFarlane
as
Executive Vice-'
other payments during the petiocl.
8.1% decline in the Dow Jones
Specialization by these funds in
President and Fred J. Oppat as
Group Securities—January In¬ Industrials.
Secretary.
vestment
Report
considers
the
Dividend News
Edward C. P. Davis, of Dickin¬
consumers soft goods industries to
American Business Shares—An¬ son, Wright, Davis, McKean and
be now at the peak of their re¬
COMMONWEALTH
Cudlip will continue as counsel,
placement boom, in contrast to nounces quarterly dividend of 4c
INVESTMENT COMPANY
and
Edward
Bower of
White,
the consumers durable goods in¬ per share, payable Feb. 20, 1947
Bower and Prevost will continue
dustries just beginning to enter to holders of record Feb. 5, 1947;
England Fund and Eaton & How¬
ard Stock. Fund. Closed-end com¬

beginning of World War

that from

INC.

Diversified Investment Fund
with Redeemable
★

Prospectus on Request

garded

W:.

( :;:vr

HUGH W. LONG & CO.

Son Francisco 4,

particularly promising.

directors,5 in¬
Gamble, majority

and election of new

cluding

California

termination of 3-year voting trust

NORTH AMERICAN SECURITIES CO.
2500 Russ Building

the

Investors Syndicate—Announces

GENERAL DISTRIBUTORS

Prospectus from your Investment Dealeror

peak production.
latter,
automobile,
building, steel, heavy machinery
and railroad equipment are re¬
their period, of

Among

stockholder.

subsidiaries

Among

INCO&rOR ATtD

48 WALL

are

Investors

Mutual, Inc., Invest¬

STREET. NEW YORK 5, N Y.
CHICAGO

tOS ANOEU*

Investment Co;
—Tentative tax opinion is that ap¬
Commonwealth

proximately

64%

dividends of 42c per

from
an

Custodian

INVESTORS STOCK FUND/INC.

net

Ihree-year

investment income, and

request from Principal Underwriter

Prospectus
%oUr

man

be obtained

-- *

R. E. Macgr«gor,

heat investment dealer ear

per share, from realized security
profits, were paid Jan. 15, 1947 to
holders of record.Jan. .4, 1947. f;

mond C.
nell

TLe Kerstond

of Boston
50

.„

Zll Me

REPRESENTATIVES IN THE PRINCIPAL CITIES OF THE UNITED

was

elected

for

term,

and

the

O'Donnell, R. C. O'Don-

Co., and Charles A. Par-

Elected to the Nominating Com¬

linger,

PUTNAM

1947

CO.;

Charles B. Crouse, Crouse & Co;;

Muschette With
(Special to

Prospectus upon

Paul T. Bol-

are:

Bollinger, Harris &

Clyde Hagerman, Wm, C. Roney &
Co.; Clarence Horn, First of Michigan Corp.; Raymond Reilly, M.
A. Manley & Co.••

request

Muschette

Chapin Co.

Thk Financial

DETROIT, MICH.

Chronicle)

—

Leslie

has become associated

with Chapin &
scot

STATES

Putnam

Fund Distributors,

.60 State

Sfc,Bosto»

Inc.
r

Company, Penob¬
Building,' members of the

Detroit Stock Exchange. Mr. Mus¬

chette

was

previously with Wal1in Las:

stohn-Hoffmai&';&:^^

Congress Street, Boston 9, JMass.

mittee for

Minneapolis, Minnesota

Company 7

Paine, Webber,

Governors

cells, Chas, A. Parcells & Co.,
Funds—Follow- whose terms expire in 1948, and
Samuel Hague, Smith, Hague &
Co.; George A. McDowell, and
Paul I. Moreland, Moreland & Co.,
whose terms expire in 1949.

' ~

President

Board are:. Milton A. Manley, Ray¬

INVESTORS SYNDICATE
from

Curtis

Other Governors making up

of 4c

FUND
Prospectuses

Board

the

share will be

extraordinary dividend

INVESTORS MUTUAL, INC

INVESTORS SELECTIVE FUND, INC.

Byrne of

Jackson

1.946

total

auditor.

Dan

Max
J.
designated as capital gain divi¬ Stringer of Watling, Lerchen &
dends.
Co., and Armin H. Vogel of A. H.
Manhattan Bond Fund—Ordir Vogel & Co; were re-elected for
nary dividend
of 8c per share, the same period.

National Trust

ey-stome

•

Angeles;

■

Voltiiiie: 165

Nurnber 4562"

THE COMMERCIAL 4
FINANCIAL

CHRONICLE
407

$e!l^fios$eti Slock

Safegilairdinl| Export-Import "Baltic
By HOWARD BUFFETT
Republican Congressman from Nebraska
-

•

Congressman Buff ett explains objective of
private participation in Bank's loans, is
business basis, and to
economic international

-v

^ I

•

its operation on

assure

"politico-!

HR 665 would
require the Export-Import Bank to

loans

over

The

•

amount

then

iirterniitiohal

weapon,

obviously the safeguards of

HR 665

unwanted.

are

If the Bank

objective of
the

bill

(

encourage and

require

The

text of

Rev. Buffett's bill,

UR 665,' explained, in this article^

the

fyas published ift the "ChtdmcleJ*

operating policy of the

i'd% dti, 1947,

Bank

fsfa political; instrument,"any

con¬

form with

sec¬

of its
statement of
basic

princi-.
which

pies,
reads

channels. It would provide a"
part¬

in part:
a mat¬

Howard

As
ter

pru-.

nership

Buffet!

management and
quired by law,. THE

re¬

While

BANK

REASONABLE

AS¬

the operations; of ttlie Bank od" a
forthright • basis.
'r

I If the loans of the Bank meet
this

The proposal follows the
pattern
used successfully by the

standard, it is likewise rea¬
to expect that Export-

making; Small

Import Bank officials would easi¬
ly find private banks to supply
\

of future loans.

the

con¬

to make partial or out¬
right political loans. Fortified by
requirement of private par¬
ticipation in; its; risks,: the Bank
would not be embarrassed by re¬
quests for outright or quasi-po¬
litical'loans.

(

ing."

water

loan

will

Sale of the 100,000

•fhe, .remainder
approximately

the

$353,000

rent'short-term

bank

the

Bureau,

apparent
that

based

Stock

the

seen

now

of the

Baxter In¬

Economic

the

United

ag¬

of the

of the ^

Joins Bacon Whipple Staff
(Special to-Thb EinahcIai Chronkli:)

States; Robert E.' Wason/

"Industry." Mr. Wason. is Chair¬
man

| CHICAGO, ILL; ^ Claude
Lbdeh bas become affiliated with:

Board; National Asso¬ Bacon;.

Whipple i& Co., 135 Sodth
Manufacturers; Presi¬ Lr Salle Street, members of the
dent, Manning, Ma x well; and New York and
Chicago Stock Ex-*
Moore; Louis J. Paradiso, "Con¬ changes.
ciation ,of

the

company's working capital.

This

announcement is not

offer to sell or a solicitation of an offer to buy these securities,
offering is made only by the Prospectus.
*
'

•

The

■

fool¬

most

$13,000,000 ;M*;

economic paternalism are

the

■'

political

/it

First
Dated

no more

case

Mortgage Bonds, 2%% Series due 1977* :

January 1, 1947

■

friends.
In

II'

;

Due

January 1, 1977

I have decided to lose

credits of the Bank

! -'

I%w%ifcSt^E]ftcMc & GasCorporation

■

to three friends;
friends; also

money;

friendships

Price 102%% and accrued interest

Administration officials

are

would not be unduly
impeded by

this verse, a case
study of inter¬
national loaning by a government

exempted from the proposal
in order that this smaller business

participation requirements. Prob¬
ably the danger of political loans
is* not

der the

( ,Up

important in credits

not

agree

to this

time

the

un¬

World

Bank

has

The

War

Prospectus may be obtained in any State in which this announcement is circulatedfrom
only suck
of the undersigned and other dealers as may lawfully offer these,securities in such State,
'

....,

I
car¬

ried

on an ambitious
program of
direct government loans to Euro¬
pean nations. Aside from partici¬

involved. Foreign coun¬
tries and well-informed
people in
America are not being fooled

1.)

HALSEY, STUART & CO. INC.

pation in the two American spon-German credits, the
objec¬

moral

After World War I France

which poli¬

The victim

the

France's Experience After

were

this practice.

with

be enlightening.,

may

$5,000,000 mark.

made many loans in

tics

OTIS & CO.

sored

this

tive

official deception is the ordinary

was

THE MILWAUKEE COMPANY

(INCORPORATED)

strengthen her mili¬

American taxpayer, who desper¬ tary position and have strong al¬
lies in case of war.
.!,,
ately clings to the belief that
^
How did this scheme work out?.those in high places in his gov¬
Read the following;
ernment speak
c<m^leteMisi
only truth.
of French Government
post-World
'If the officials of theBank mean War 1 loans and
recall'what each
what they say when they- solemn¬
country did for or against France
ly assert that the

January 23, 1947

{

"BANK

ONLY

LOANS

MAKES

WHICH

when World War II arrived. - " 4
When the time! came for the

OFFER

REASONABLE ASSURANCE OF

REPAYMENT,"
of real;

borrowing nations to help France,
those receiving almost half of the
loan total
-fought

this bill should be

assistance to them.

Tliis advertisement
:•

is not,

and is under
*

End

However, if the Bank

tion

FRENCH

is to func¬
combination politico-

LOANS

EUROPEAN

WORLD

WAR

{Dawes

Hungary

loan)___

170,000,000 francs
40,000,000 francs
£ 3,000,000 '
*

1928

Rumania

$ 2,000,000

1929

Germany
Pinland

(Young

loah)

1930-

;

Romania

1931\> (spring)

•,-y

JjXugoslavia;

1931

Poland-•

1931
—

1931

Hungary/

•

;

$10,000,000
;$14,160,000

Monaco

..Vv

1932- (November)
^1933;.(February)
1936 (December)
1939
(October) :

?.
V

„

$
84,601
$11,772,000
981,000.
$22,540,000 -

$26,460,000

13,000,000 francs
300,000,000 francs
405,000,000 francs

Tfe.

fS
'

;

Lee Higginson Corporation

j Ames, Emerich & Co.; Inc.

Kebbon, McCormick

&. Co.

$15,680,000
$

8,400,000

A. C. Allyn and Company *

■

;

Bacon, Whipple & Co.

$14,160,000

Turkey
£ 5,000,000 (gold)
1939 (October)
Source, Legislative Reference Service, library of
'Congress.'.

Copies of the Prospectus may be obtained from such of the underSigned only as arc registered dealers in securities in this State.

$10,000,000

> V :
i
.$13,650,000--- -i-f

1932-i(December)

Poland'

675,000,000 francs

(October)

;l1931 v«(fall)

Austria-

M$21,968,760.*

400,000,000 francs
$ '8,400,000-' (

1931 .(fall)

"Yugoslavia

Belgium—."

(spring)

Price: $9.50 per share

2,432,000

2,000,000
$ 5,096,000

25,000,000 francs
575,000 000 francs

(spring)

300,000,000 francs

"1930

Company

<$5 Par Value)

$13,251,000
-$<5,026,560^

2,156,000 francs

1930

Podand.

130,000,000 francs
561,000,000 francs

solicitation

$24,320,000 1

96,000,000 francs

1927
______

as a
-

| 1100,000 Common Shares

$10,336,000

1924

Poland

Bulgaria

to be construed as, an
offering of the following securities for sale or
of such securities. The offering is made only by the Prospectus, l.
,v

Currency

$75,471,000

1924

any

Equivalent'-

£16,500.000
400,000,000 francs

1923

;___

circumstances

buy

1923

___

Bell ,& Gossett

1923
___

Germany

Poland:

BETWEEN
II
Amount

1923

Bulgaria

Poland*

WAR

Date

Rumania
Belgium
Austria

COUNTRIES

U. S.

%'■> * Country—

offer

sistance of the other loan recipi¬
ents is a matter of record. *" •
' !

WORLD

AND

nation, Turkey, stayed on the side¬
lines. The quick collapse of re¬

Pretense

NEW ISSUE

Frapce.; 4One

■

Research

Robert R. Wason "

United Nations} former economic
assistant to the President of the

boomeranging

international

I loaned
money
I lost the three

of economic warfare.

Ex¬

New School/faculty, is Chalriham;

Isador Lubin

'$t^qs^ii|r*eSiilf in un increase of

Years ago I got my first lesson
on
human relations in
finance
from a sign on a
cigar store cash
register. It read:

This safeguard would eliminate
the charge either at home or
abroad that the Bank is being

the "

loans,

counterfeit. W.

Preventing Dollar Diplomacy

was

governor

^. A: Wilfred May, member

Se¬

Baxter is head

prospectus

approximately- $355,000

now

Association

ternational^

gregating $430,000. Such applica¬
tion ;of proceeds,

W.'"

and

firms; partner," Ladenburg,;Thalmann & Co.; Willianx
il.; Baxter, "Stock Prices." Mr*.

cur¬

loans

Department;

the

change

the

will

William

"Finance

Mr..' Cumberland

proceeds

applied!;tpv-1hd reduction

Banks;

economic advisor to

State

common shares,

curities."

re-

tirpd frpih net proceeds

.•

V. Bell, "Bank-/
State Superin¬

formerly

specialities, in¬

Outstanding debenture notes
totaling $75,423. and a $420,000 in¬
bank

Bell

Cumberland,

cluding an electric water circula¬
tor and; various types
of-water
beaters, industrial heat' transfer
Equipment and industrial pumpSi-

stallment

Mr.

tendent

Co., incorporated Jan.: 5,1916, are
dt1 Morton Grove, 111. It
manufac¬
hot

and

Commerce; Elliott

McCormick &c Co. and
associated
Underwriters.
.
Main, offices of. Bell & Gossett

tures

Prices."; Mr. Para¬
.delegate to the Economic and Em¬ diso
is Chief -of the ' BUsinessrployment Commission of the
Structure Division, Department of

hardy zealot of foreign handouts

the

[ .The smaller

-was

results of Lend-Lease and UNRRA
in several instances. It should be

pro¬

strained

used as an instrument for

Speakers include:

Isador Lubin—"Economic
E1e-<S>ments." Mr. Lubin is United
States sumption

January 20 at $9.50 a share
Ames, Emerich &%Co., Inc.;
Lee
Higginson Corp.;
Kebbon,

risk.^f||v^'4j/.'""

We have

: Moreover, this bill would
tect!, the Bank from being

to discuss the
topic, "The Economic
Depression? Which? Is Either

Outlook
for 1947—Boom or
Necessary?" will
be held at the New School
for Social Research on
Wednesday, Jan. 29,
jat 7:30 p,m. The dinner is, the, third
forum of the. season to be held
under the
auspices; of. the Associate Members of the New
School.

industrial

equipment,!

Bust?"

dinner-forum

R£C in
with1 local
banks required to take' a
part of

sonable

25%

is meritorious,

is of minor importance com¬
pared to the need for establishing

SURANCE OF REPAYMENT.
\

this; goal

MAKES ONLY LOANS WHICH

OFFER

outlet* for.v the > gigantic

of the nation.

dent

•;

2f3^Editof^

pa&e

tense otherwise; should - end.v
^
; Enactment of th|s
plan (into law
would also encourage the return
Of international lend.ng to
private

tion (c)

and

economic

primary,

transfer

made

all

specialities

lieat

T>-

■

secure

$5,000,000 full risk private participation for

equal to 25%
of the total
loan.
^ '

water

Cites France's experience after

World War I to support his conclusion
international friendships
based on economic paternalism are counterfeit.

Wason, Lubin lo Discuss "Boom

Off'd by Ames, Emerich

rPublic offering of
100,000
co'mmbn shares, $5 par
value, of
Bell & Gossett Co.-, an Illinois
corporation
manufacturing
hot

blll»:-Aiia>

•

free it from being used

weapon."

...

$13,650,000
>"$ : >.509,600

The Illinois

Company

! The Milwaukee

Company

•>/ $11,*760,000

ft $18,901,350

$13,680,000
$19,445,000

JP January 20,

1947
•

!■

"""■

rf v1

\••

11"fi ■ .»■

-:y:

Farwell, Chapman &. Co.

t\-■ v-'■■ i".'■

.;i^:';/>>'$V.-

;:■ '•-•r>.'.'.Vru'

*'>'•:^7<SHtv&Mv;#>.•>< JJi|U

Bank and Insurance

It is also of in¬
average ratio of
deposits to capital funds of the
fifteen banks is now: 12.4, -com¬

Stocks

QiiSM

::•.;.'

AFL Denounces Nathan Report

both year-ends.
terest that the

•■••

—

Thursday, January 23, 1947

FINANCIAL CHRONICLE

THE COMMERCIAL &

408

-v;&•':'

•■"'

'■■ •:r• ^^^

r''.•

■'>*y-k-rf-¥f

III January issue

of its "Labor's Monthly Survey," it states report

figuring

presupposes a pooling of profits and therefore is based on
pared with 15.2 a year ago. At the
"that has nothing to do with realities of industrial operation or with
present time the following five
By E. A. VAN DEUSENEE
banks have ratios below the con¬
collective bargaining.''
Points out profits create jobs, and profit
ventional 10.0, viz: Bankers Trust,
reduction will close many plants.
This Week—Bank Stocks
9.4%;
First
National,
4.8%;
Guaranty
Trust,
7.8%; Irving
The January issue of "Labor's Monthly Survey," published by
At the close of 1946, total earning assets of 15 leading New York
Trust, 9.0%; and U. S. Trust, 4.3%. the American Federation of Labor, in addition to denouncing the
City banks aggregated $19,487,309,000, compared with $24,361,905,000 A year ago only First National
portal-to-portal pay suits, attacks^
t
on Dec. 31, 1945, a peak figure. The decrease during the year amount¬
and U. S. Trust had ratios below the validity of the so-called Na¬ _is would
provide a total sum of •
ed to $4,874,596,000, equivalent to approximately 20%. Over the same 10.0.
than Report compiled under the money large enough to pay a 25%
period deposits decreased from a peak on Dec. 31, 1945, of $28,163,Corn Exchange's ratio is also auspices of the CIO, arid which wage increase.
149,000 to $23,332,683,000, a decline of $4,830,466,000, or approximately low at 10.4; the remaining banks set
up a claim that wages could
"Clearly this figuring on paper
17.2%. This decline, however, has been almost entirely in the gov¬ in the list have ratios as follows be
generally increased as much as has nothing whatever to do with
ernment's demand deposits,
—Chemical, 11.9; Bank of New 25% without requiring any rise in
the realities of industrial opera- *
v
A break-down of the year's decline in earning assets shows the York, 12.1; Central Hanover, 12.1;
prices. In commenting on the Re¬ tion or with collective bargaining.'
following: ; \
Chase, 14.3: Bank of Manhattan,
Loans &■
port, the publication states;
Unions negotiate with thousands ■ v
Other
U. S.
■
16.0; National City, 16.6; Corn Ex¬
Discounts
Bonds & Securities
-The businessman's profit in a of companies, each faced with
Govt. Securities
($000)
change, 19.0; Manufacturers Trust,
($000)
($000)
free enterprise economy serves two different conditions affecting their
6.877,605
1,220.924
16,003,278
19.2; Public, 19,3.
12-31-45
useful purposes, both of which ability, to pay higher wages. Some
6,013,388
1,175,622
12,080,661 r
12-31-46:—
These
are & rather
interesting raise workers' living standards: can pay more) some less. There
864,217
45,302
ratios. On the one hand, they give First; creating better products at could be no
3,922,617
Total decrease—...
pooling of profits;*
—12.5%
—3.7%
—24.5%
Decrease.
a comparison of leverages and on
lower cost.
The striving of 10 such as the report presupposes,
the
other hand, indications
of million, businessmen and farmers except under a totalitarian state.
It will benoted that approxi¬ brokers and dealers and; other
loans for purchasing or carrying where one might look for possible to
gain more profit has made Even if it were possible to force
mately 80 % of the decline has
capitalization increases.
And on them improve products, invent a 25% wage increase on American
been in Government Securities, securities, while commercial loans
increased close to a billion dollars this point, one might wonder why hew things and cut costs so they
and it is of further interest that
ndustry generally, the necessary
Guaranty Trust, with its low ratio could sell more goods than their 68%
or more than 33%.
cut in profits would put
approximately- 96% of this de¬
Hence, although total earning of 7.8, should have considered it competitors in a free market. thousands of companies out ofcline has been in Treasury bills,
assets
have shrunk
in volume necessary to increase its capital Secondly: expanding production business; and throw millions of
certificates and notes, while the
are
definitely better in from $90,000,000 to $100,000,000. and increasing productivity, cre¬ workers out of jobs; it would re¬
j higher-r-yield
Treasury bonds are they
character from an earnings stand¬ The latter figure, it is;t?ue, looks
only - fractionally Tower.
ating: more jobs,* more consumer duce profits to the low level of
better and is easier for bank stock
goods and making higher wages 1936 to 1939 when 8^ million
,It is of further interest to note point. It is not so surprising there¬
analysts: to work with. If nice possible. Profits furnish the funds were
that although total loans and dis¬ fore, that the net operating earn¬
unemployed and industryround numbers are of importance,
to expand industrial plants and was not earning enough for the
counts of the 15 banks are lower ings of the banks for 1946 held up
fairly well compared with 1945, Several other banks with higher equip them with modern machin¬ normal new plant and equipment
by $864,217,000 or 12.5%, the re-?
ratios could make changes that
duct ion :has
been- in loans to despite higher operating- costs.
ery.
In 1946, American business which expands production and
would be welcomed by statisti¬
7
Total Net Oper
spent $18 billion* out of past raises living 'standards.
Net Sec. Profits & Sec. Profits
cians, viz: Chase, Manufacturers
Net Oper. Prof.
Book Value
profits, reserves, current profits
1946
"It is true that many companies
1945
1945
1946
>1946
1945
12-31-45 12-31-46
Trust, National City and Public and borrowings for this purpose,
$3.41
$3.67

.47.77

>. 3.10

Exchange—w

53.34

1.53

2.36

2.59

1.23

0.40

,3.59

2.99

3.07

2.87

1.33

0.58

4.40

3.45

5.43

5.50

(Not reported)

5.43

1,333.79

1,359.80

347.42

357.36

Guaranty Trust—"

Trust—

99.82

National-:.U. S.! Trust——U

-48.89

120.34

105.47

5.76

2.2a

24.82

22.31

0.04

0.05

1.36

1.40

1.83

1.35

6.73

98.65

92.54T ■*21:69.'VM2;MS

19.06

22.53
57.71
46.3?
104.78

20.08

1.35

1.32

52.00

Irving .Trust__—-iManufacturers.Trust

22.08

New

York

44.60

tPublic

767.74

4.90

5.26

>2.84

3.03

•

7.40

7.94

4.12,

i.28,: ; 0.64
2.30
1.48 7

6.61
:

3.67
9.70

9.42
-

3.81

TrUsfe

ttodlcated

earnings..

4.85

57.93

3JL8

1L51

44.07

46.42

770.25

•

City Bank. Farmers

I 'Includes

;

54.85

•National City-

creating jobs for' almost 5,000,000
workers who built the plant and

5.50

2.88

V 3.04

8.79

56.05

First i National-

show

9.57

41.40

National.,

3.36

42.37

Corn

5.24
11.67

118.19

40.57
:

33.11

0.26

1.85

25.97

40.02

National—_

Chase

Chemical Bk. & Tr.

25.97

3.39

49.05

112.63

Hanover___

Central

33.11

448.17

436.20

$0.85
(Not reported)
$0.55

$2.56

t$3.12

$31.55

$30.26

Bank of Manhattan.
Bank of New York
Bankers Trust

47.25

^Includes 40c.

over a

Of Fundamental Inv.

riess

It will be observed in
o

vv"*r"

—'---r.-r—
*

—i

—

/v«i

reported higher
net' operating earnings in 1946
than in 1945, exclusive of net se¬
curity profits. The latter item is
lower; for all banks except Bank
of Manhattan, Irving Trust ana

Management

Company,Inc.
'

1.2%,

In deposits

earnings. It the 9.8% of National City. Chase
that Public is the one National's decline was 21.7%.
Capital funds made substantial
bank in the group to report high¬
able; only indicated

deposits, viz; $552,053,000 on gains during the year, as indicated
in the column of book-values for

ANALYSIS

19 NEW YORK CITY

NEW JERSEY,

BANK STOCKS

'r' '

■* ■

' ''■ "

New

Members

York

profit in competition with
each other, under our system of
free enterprise and strong labor
unions, has made American inr

Investors

Management

;

Company, Inc.,
which is a re-

^search' organ;

J. S. Rippel & Co.

(L. A. Gibbs, Manager

Trading Department)

WHOLESALE MARKETS IN

In 1946 he became

direc¬

research with Clark,

Dodge

& Co.

HEAD

STOCKS

Scotland

Charter 1727

OFFICE—Edinburgh

Branches

throughout Scotland

LONDON

OFFICES:

3 Bishopsgate, E.

fiEYER k CD.

8 West Smithfield,

49 Charing

INCORPORATED

23t

S. LaSaile Street

FRanklin 783S

HUbbard 0650

4t2

j TELEPHONES
!.

SYSTEM CONNECTING:

CLEVELAND,

Wall Strut

West Sixth Street

MICHIGAN 2837

LA-ioSb

CG'/oj
PRIVATE WIRE

PHILADELPHIA.

7008

W. t

64 New Bond Street,

Jluss

W. /

TOTAL ASSETS

Bt'iMinf -;

£118,681,681

9umn 6Bh?

living

the world.

Associated Banks

FRANCISCO

Williams

Portland, Enterprise 7008
Detroit,

Enterprise 6066

Deacon's

Glyn Mills

;

Bank, Ltd.

& Co.

bargaining.

all

give

expect a uniform large increase
negotiations will destroy the

from

basis

mutual

confidence

and

good faith which is essential for
progress

decent levels of

in collective bargaining.

"What then is the purpose behind
this

proposal?
Is it to cause in¬
strife, chaos and unem¬
ployment? Or does it seek to stir
up workers to demand govern¬
ment control and regimentation?
Communist policies would explain

dustrial

such tactics.

Russia wants to

see

unemployment increased in the
United States,3 Communists want
to create chaos and discredit free

enterprise. American workers may

that

well

24% or a
30% wage increase without rais¬
ing prices. Their efforts resulted

pays

"Last year the CIO claimed
pay .a

ask

themselves

whether

to follow those who are con-

^olled by the party line. The

CIO s - $12,000
report
made
formula newspaper headlines, but it suc¬
(about 18^%)2 and a living cost ceeded only in obscuring the real
rise of equal amount. They have question every union needs to
learned nothing from this expe¬ answer for collective bargaining,
rience. Again this year they are namely: How much wage increase
making the same kind of claim, can our employer pay?
that iridustiy can pay 8 25 % wage
"When American employers re¬
increase without raising prices.
fuse to give responsible union of¬
"This claim is based on a report ficers financial reports showing

18 V2-cent

of' Robert

Which

wage

Nathan

reasons as

Associates

operating results of their business,

When

they play into the hands of those

follows:

profits of all corporations (after Who would deceive their employ¬
taxes) are added together, the re¬ ees.
Collective bargaining re¬
sulting figure is large enough to

quires good faith on both side9

for

of the conference table. A correct

furnish-a 25 % wage increase
their

employees,

provided

that decision

profits retained by the corpora¬
are

;

cut back! to' the level

which prevailed in

1936 to 1939,

In other words, a 68%

cut in prof

:SF-S7J,:~

LOS ANGELES, SAN

' American

The Nathan Report

tions

SAN FRANCISCO 4

NEW YORK, BOSTON, CHICAGO,

TO: Hartford, Enterprise 6011

' Providence, Enterprise

Cross, S. W.1

Burlington Gardens,

LOS ANGELES 14

C. 2

E. C. !

NY 1.2875

WHITEHALL 3-0782

CHIC AGO 4

BOSTON 9
Post Office Square

research in later industry could

Incorporated by Royal

NEW YORK 5:

and

the incentive to produce.

Vice-Presi¬

workers the impression they are

The U. S. S. R. destroys

living.

connected with
Corporation from 1929

Royal Bank of

ductivb

sian workers to

N. Y. Phone—REctor 2-4383

BANK and INSURANCE

lective

today .in
in charge Soviet Russia, where there are no
of
portfolio profits, no free unions, and in¬
a dministradustry is a state monopoly, pro¬
Edmund Brown, Jr.
of the two in¬ duction
lags because managemen'
vestment com¬ is
inefficient,
workers'
living
panies which have over $30,000,- standards are at poverty levels
000 in assets.
The research or¬ and 'real' wages have declined.
ganization is affiliated with the The many purges of managers for
firm of Roosevelt and Son and inefficiency have not raised Rus¬

tor of

2, N. J.

Wage Increase Formula?
"The CIO formula is clearly not
intended to promote genuine col¬

dustpr the most efficient and proT

standards the highest in
will be direct¬ It is'
interesting that

MArket 3-3430

Tele.—NY 1-1248-49

What Is the Purpose of the 25%

and

ization,

years.

1891

18 Clinton St, Newark

Stock Exchange

NEW YORK 6, N. Y.

Tel.: BA 7-3500 Bell

make

dent in charge of

Laird, Bissell & Meeds

120 BROADWAY,

greater pro¬

means

sion and also

"The effort of businessmen to

until 1946 serving as

*•'

Established

This

executive

Lehman

VJ-

bus!-'

ductivity in 1947, making possible
more jobs and higher wages; In¬
dustry must have enough profit
for this purpose if our growing
population is to have jobs and
steadily rising wages.

Mr. Brown was

"v'ir'.v

to 1939.

tion.

SECURITIES

AVAILABLE ON REQUEST

Americaa

amount

George Emlen Roosevelt is Chair¬
of the board of the corpora¬

Securities Profits

*■>.}^

J'The

chief research

man

1946
Operating Earnings.

has been an¬
nounced.
Mr.
Brown will be

The average decline

is of interest

COMPARISON and

Investors

and
•

of'the fifteen banks was 15.8%;
maximum percent decline was the
25.7% of New York Trust fol¬
lowed by th4. 24.4% of Guaranty
Trust; minimum decline was the
New York Trust. Operating earn¬
5.2% of Corn Exchange, followed
ings of Public are not yet avail¬ by the 6.1% of U. S. Trust and

Fund, Inc.

Investors Management

tax

the ac- Dec. 31„ 1946 compared with $545,
498,000 on Dec. 31, 1945; a gain of

companying tabulation that T-i wl% of,
six

spent in 1946 to expand and
Election of .Edmund Brown, Jr; improve plants was greater than
in any other recent year and more
as Vice-President and a director
than double the prewar years 1936
of Fundamental Investors,- Inc.,

savings.

the fifteen banks

equipment, and future jobs for
million who Will operate it.

Edmund Brown Jr. Y.-P.

enough profit in 1946 to
adequate plant expan¬
provide substantial;
wage increases for workers.
It is
vital that workers' wages be raised
by the highest: amount possible :
without increasing prices if our
high level of production'and em^
ploymerit is to continue. But it
is not true that industry can af¬
ford a 25% general wage increase'
in 1947. To deceive workers by •
leading them to
believe they
should receive such a general in¬
crease
is
a
most
irresponsible
policy. - }
.
allow for

;

1 Commerce Department figures.

American fac¬
hour when
the formula was set up, making an 18Vi
cent increase equivalent to 18 '/a %.
!2The

tories

average

was

wage

roughly

$1.00

per

cannot

reached if

one

possibly * be

party has all the

facts and the other party is denied

them

and -must negotiate in

the

dark."-; ■;
3 House of

mittee

Representatives Special Com¬

Postwar

Economic

Policy

and

m<,nning,c Supplement to Eleventh Report^

THE U'S'S LABEL zV. a
sense.

It has been

promoted for

public figure in 'tfte -ttuest
consistently advertised arid

steel

products identified by the US'S Label were

diverted to the needs of

war.

The Label practi¬

in the nation's leading
periodicals. It is known and liked by millions of

cally disappeared from the

people. Its popularity is solidly based on past
performance and future promise. It is accepted
from coast to coast... in fact, the world over...

future, As articles made of steel again become

the mark of

Before the
on

many years

good steel.

war,

hundreds of

available in

the U S S Label

was

appearing

products made with steel. Manu¬

products found that when
they were more
warmly received by the buying public. They sold
more
easily—in bigger volume. ft;'
But during the war years, most of the steels and
articles carried the U'S'S Label,

ever

get

for the

large quantities to the buying public,

the IPS'S Label
more

facturers of those

stores.
;lV;'
Now, the U • S • S Label has definite plans

plans to show itself on more arid
plans to be more helpful than

of them. It

its millions of friends in

helping them to
their money's worth when they buy things

made of steel.

Manufacturers of
desire

Labels,

are

quality steel products who

information

invited

address

States Steel, P. O. Box

the

use

of U'S'S

inquiries to United

236, Pittsburgh, Pa.

iiiu?
^T-

t h pt.%

FINANCIAL/CHRONICLE

THE COMMERCIAL &

410

Frederick Johnson Is
CHICAGO, ILL.—Cruttenden &
209 South La Salle Street,

Co.,

members of New York Stock Ex-

price set by the Interstate Commerce Commission. Chesapeake
had originally, set a price of $70 a share for this stock and the
Nickel
Plate
management had£
been willing to pay that. As a of the Wheeling. It is generally
matter of fact, the general feeling considered that the present trans¬
among railroad analysts had been action, marks ah important step
that at that price the shares rep¬ towards eventual merger of the

announce

at the

&' Ohio

bargain. two roads.
The total purchase price involved
Aside from
resented considerable of

for

78,145 shares had been placed

$5,470,150.

question of fu¬

any

ture merger of Wheeling & Lake
Erie with Nickel Plate or any

Chicago

With a Republican Congress and the public trend toward con-*
servatism, industry will be getting back again a measure of its be-

Frederick

F. J

n s

o r m er

on,

upward revision. At this recent
rate Nickel Plate's dividend in¬
come from the subsidiary, includ¬
to

selling securities to its subsidiary.
Although it is difficult to support
the Commission's ruling on any ing dividends
on the preferred
business basis the important con¬ stock held, will amount to $819,sideration now is that Chesapeake 835 per annum. This is equivalent
& Ohio has, reluctantly, accepted to almost 25% of the road's fixed

time.

the

condition

and

agreed to sell
the shares to its subsidiary.
Together with the stock it al¬

this proposed pur¬
Nickel Plate 73%
of the 337,723 shares of Wheeling
& Lake Erie common outstanding.
ready

owns

chase will give

In addition,

it holds 14,800 of the

102,140 shares of 5V2% convertible
preferred stock outstanding.
As
both
this
convertible
preferred
and the prior lien stock (practi¬
cally all the prior lien stock Js
owned by Chesapeake & Ohio)
have equal voting power with the
common Nickel Plate will, on the
completion^ of the present trans¬
action, have 47% voting control

• •

•'

One

the

aspects

the

present transaction that is of par¬
ticular interest to the preferred
stock holders of the Nickel Plate

•-<

Common & Preferred

headed by

battle
were

dividends and finally

for

given $3.00 a share in Janu¬

ary 1946, $L0Q in April and $5.00
in January 1947. As it appears ^al-

mpst certain
tive

traffic

that under ,prospec-;
conditions

rbad'

the

should1 be able to continue cover¬

at least the full rate every year.

prospect of at least the
regular rate has presumably been
strengthened - by the -cash „saving
on
the ; Wheeling
purchase. In
addition, there are many who feel
that the cash saved might well be

;

Dearborq Corp.

;

utilized for

International
Ocean

additional distribu¬

These arrears
still amount to $84.00 a share. The

Telegraph

Universal Match

Kenneth Stanford Is

mon

stock,

With F. S. Smithers

Ernst&Co.
leading Security and Commodity Exchs.
f/V'.,>-»(/'
4
r'1 " f
v
V'
^ '•

v.?\

231

So. LaSalle St., Chicago 4, 111.

Smithers &

group

marked

first

$5,

back to 1917 when it

always been its principal
executivje officer.
The stock being offered today
represents part of the holdings of

has

f" Can

re¬

management

Carbon

Inc. has no funded debt or
preferred stock. When it was' a
family owned .enterprise its au¬
thorized common stock totaled
30,000 shares without par value
but this was recently changed to

plan

devised that will be

profitable to U. S. business and
also cause labor to produce at a
maximum of efficiency? Manage¬
ment will not and cannot operate
without profits. But, given free¬
dom again to make profits, will
management be able to unite rad¬
ical and conservative elements in

shares, par value $5, of
which -300,000
are
outstanding.
All but a small precentage of the
450,000

Brooklyn and approximately

160

employed. The com¬

ization.

ing department. Mr. Stanford was

(Special-to The Pinanciai

Chronicle)

•

workable
guarantees which will give

security? A government survey on
>

MIAMI,-FLA.-—James O. Evans

io^nerly with Lazard Freres and is now with Frank D. Newman &
Eisele & King.
Co., Ingraham Building. ^
\ '
' '.v
/

guaranteed annual wages has re¬
vealed .that
fewer
than 75,000
workers have thus far come under
of guaranteed wage plan
States, whereas,
there are said to be around 200

any sort

the 'United

plans in existence.
This is
because
most
employers
claim
that no one of these plans is as

DL&W—Lackawanna RE N X
Mtg MA" 4# 1993

Offerings wanted in all OLD ISSUES of the

First Mortgage

SEABOARD

Priced to yield better than 6%%

Analysis

muffs

Request

•

IfFRISCOfi*

•.

years

her

Official Changes
At Bank of America
FRANCISCO,
CALIF.—
Braunschweiger has been
elected an executive vice-presi¬
dent of the Bank of America, it is
SAN

Gock, Chair¬

of the board of

directors. Mr.

man

make

will

Braunschweiger

his

headquarters at the bank's Los
Angeles main office and will be
associated with Mr. Gock in the
administration of the bank's af¬
fairs.

Richard S. McCune, Vice-Pres¬

ident

business

the

extension

department at Los Angeles head¬
quarters
for the past several
years, becomes Vice-President in
the
Los
Angeles
main office.
Huck, Vice-President,

William F.

transferred from San
Francisco to Los Angeles as VicePresident in the loan supervision
been

has

will become a
Angeles

and

department,

Vice-Chairman of the Los
loan and finance

committees.

N. A. S. D. Elects New
:

Officials for Gov. 'X' ^ 5
Bd.
*

7 -v'

?- V

The National

Association of Se¬

Dealers, Inci. has elected
Herbert F. Boynton of H. F. Boynton & Co., New York, chairman
of the governing board for the
current year. L. Raymond Billett,

curities

Kebbon, McCbrmick;
cago,

folk;

& Co., Chi¬

and John B. Shober,

Huggins

Orleans,. were

Wool-

& Shober, New
elected vice-chair¬

J
.
really practicable.
An ex¬
J.
Robert
Shuman,
Shuman,
ample of how unreasonably ex¬
pensive such a plan can be, in Agnew & Co., San Francisco, was
spite of the good will it earns named treasurer, and Wallace H.
from
employees, was
seen ; at Fulton of Washington, D. C. was
5
Hormel
packing houses during re-elected executive director.
men.,

yet

Bond on Main Line
Properties of Strategic Nature

ahead. If industry
opportunity to solve
some of these problems, manage¬
ment may lose the confidence of
the American people and also the
thing it cherishes most dearly—
freedom of enterprise. I repeat:
the Republicans have not yet been
given a Victory—but only an Op¬
portunity.
' *, ■
the

for

it provide adequate

can

the worker a reasonable sense

With Frank D. Newman

out

government and labor have failed.
Only by so doing will a period of
profitable prosperity be assured

wisely if and when it comes
or can
it provide eventually for
continuous > employment? If not.

such

1st

industry to
plan of cooperation
and fair-play all around. Manage¬
ment must succeed in this as both
work

ment

wage:

Company, 115

the bond trad¬

tackled with

announced by A.. J.

Challenge?

Now, if business is again to be
given free initiative, and at least
as much support from government
as labor has. had since
1932, can

Co.,

are

must be

vision and wisdom for

Walter

Business Accept the

and

Ribbon and

Town

much

facing today.

and of Miriam

principal shareholders.
Old

inventories

difficulties

the

Jerome
A.
Eaton who have been three of the
Girard

pick
and
desist al¬

Strikes have, so retarded normal

organized by Joseph S. Eaton
and Mrs. Lillian Eaton. Mr. Eaton

Eaton

production in the nation that re¬
conversion problems have be^n
multiplied.
Constant
wage-in¬
crease demands from labor unio t$
are
causing still higher produc¬
tion
costs
and
higher
prices.
Portal-to-portal retroactive pay
suits from some of the greedier
unions are further threats to busi¬
ness: stability. These are some of

was

Mrs. Lillian Eaton

with

left

opportunity^ participatedId

its history

tendency

duced in value.

ownership. The company traces

its

business
past. These

questions

together. As I predicted in a pre¬
vious
article,
discussing
fish
prices, we are seeing the begin¬
ning of a buyers' market. As this
continues, businesses are apt to be

Inc., com¬

value

Headaches

choose in buying or to

' Town

Old

carbon papers,

Broadway, New York City, mem¬
ber- of the New York* Stock and
Curb Exchanges in

York 5, N. Y.
'$'• ff

Business

inventories are already
very high, production is catching
up, and the public is showing a

pany has had no strikes or serious
labor difficulties since its organ¬

joined

Kenneth C. Stanford'has
F.

.MEMBERS
York Stock Exchange and other

120 Broadway, New

par

the

and

labor

much

too

Many

■

banking

Roger W. Babsoo

leadership

characterized

sighted attitude has

declining

price of $18 per share. One of the
leading companies engaged in the
manufacture and sale of record

persons

New

toward a
perio d of
•

without

the narrow, Godless point of view
of each for himself. Such a short¬

ing

operate with rea¬

Business must

sonable freedom and yet

are

$l,3Qlj762/ difference between the
proposed and the finally accepted company's products are marketed
price for Wheeling common ihay under the company's own brand support of an honest day's work
certainly logically be considered names, the remainder being sold for an honest day's pay? This re¬
as excess cash in the company's
to
competitive
manufacturers, quires giving an opportunity to
treasury. It works out to. $3.61 a jobbers and makers of small bus¬ get ahead for" those whose effi¬
shaVe on Nickel Plate preferred.
iness machines for resale under ciency and ability have earned
their own names. The plant and that privilege.
executive offices are situated in
Can. industry handle unemploy¬

Southern
Atlantic

tion against arrears.

Telephone

The First Boston Corp.
offered to the public

140,900

The

Consolidated

Jan.

wise to

reaction,
head¬

and

sort

something labor so desperately
wants, the Republicans will be
help .twork- out as good a
plan as possible in this direction.

Fol¬

c e s.

prices.

Market

investment

are

lowing the
law of action

hectograph carbon
papers, inked ribbons and related
to the road's treasury by the set¬ products, Old Town Ribbon and
ting of a lower price on the stock Carbon Co., Inc., up to now, has
purchase. The holders of the pre¬ been a family owned company
ferred stock have waged a long and this represents the public's
question of what disposition
will be made of the cash saved

is the

-r-T—,

guaranteed pay plan of
might ruin a business.
However, the need of spon find¬
ing a mutually satisfactory plan
would be desirable. Since it is
this

pe¬

——

week, received a full Week's pay*
Under continuous similar condi¬
tions

of rising

riod

Ribbon and Carbon Co.,

ing the regular $6.0Q rate by a
good margin ,there has been grow¬
ing hope that now; the initial
plunge has been taken holders
might, logically expect to receive

Arden Farms
**• Vi;. v"

charges.

ending
p r

at"

difficult

/very

Old TowirRibbon
Stock

<^—

■■■■■■■■■■■■

and

s e

I controls

Johnson',
Commerce Com¬ question of the traffic advantages
which he
examiner, and how the to both roads stemming from their formed in
Commission as a whole, contended present affiliation, the holding of
1934.
Frederick F. Johnson
Except
that the purchase price should be Wheeling stock merely as an in¬
for four years
vestment is viewed as an added
no higher than $4,168,388 or a lit¬
of active duty in the Navy, Mr.
tle over $53 a share. This finding element of strength in the Nickel
Johnson has beeft identified with
was
not based on any showing Plate picture. Wheeling common
LaSalle Street firms for twenty
that the stock was not worth the has been on a $3.00 dividend rate
years. He was released from ac¬
for the past three years (in the
higher price on its earnings and
tive
duty as Lieutenant Com-.
five years the
rate
prospects. The limit was arrived preceding
mander, a year ago.
between
$4.00
and
at on the theory that the lower fluctuated
$5.50) and this distribution is con¬
subject

free-

■

freedom from

The Interstate

sidered at least safe if not

P r

cago manager
Brown,

mission

price
represented
the
cost - to
Chesapeake & Ohio and that that
road should not make a profit in

ved

dom of enter-

Chi¬

Bennett

ment

trading de¬
partment staff
o

changed conditions and seek to providle for continuous employHe urges Republicans to seek to'work out a satisfactory
plan for keeping employment stable.
]

the

addition to

princi¬

pal exchanges

their

["■

.v-'

By ROGER W. BABSON

Holding we are heading toward declining prices and a buyers'
market, Mr. Babson says business must accept the challenge of

change and
other

1947/

Management Must Plan for
Continuous Employment

ith Gruttenden & Co.
*.
Considering the statements that had been made earlier in the
proceedings, it came as somewhat of a surprise when the Chesapeake
& Ohio directors early last week agreed to sell its common stock
interest in Wheeling & Lake Erie to New York, Chicago & St. Louis

Thursday, January 23,

•;

1946.

DENVER

Republicans Beware!
/

was
ClIAMNTEED RAILROAD

23 Broad

Street

STOCKS-BONDS

New York 4, N. Y.

Telephone BOwling Green 9-6400
.

Teletype NY 1-1063

1. h. rothchild &
Member of National

of
,

Securities

co.

Association

Dealers,

one

Inc.

wall strer?

HAnover

?-9072

y.c.

Tele. NY 1-1203

plant in Minnesota
able to slaughter less than
sixth of. its usual weekly
Hormel

With Vance, Sanders
(Special to

Th{e Financial Chronicle)

BOSTON,
Anderson

MASS.
now

—

Ralph

affiliated with

numbej: of hogs and cattle. But Vance, Sanders & Co., Ill Devon¬
employees in that plant, though
shire Street.
.working less than two hours one

yolume-165

Number '4562

<F'vV!

>««,:#

THE COMMERCIAL * FINANCIAL
CHRONICLE

r;
rt

:"V.V>.

■

IMAGINATION

THE DIRECTING FORCE

AT CHRYSLER CORPORATION

MAKE LONGER-L ASTING CARS FOR YOU

>rV ^

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THIS ENGINE TOOK A BEATING TO
t

...,",

>y\...s>&.

•?£.. ,'jt-'

f -i [■"

•■

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KEEP

You're

looking at

"back

improvement. But, to test
they'd need some way of dupli¬
cating the punishment the gears get in years
of
starting your car.

TROUBLE!

cover cut away.

"In

©ri^ine'ers Kad'spine new ideas'Tor
making these vital gears even stronger,
tougher and longer-lasting—a really

few days, it

Using this

search and

r'i#

' <1

's.-.,

Wheels, and other ^exclusive; features of

today's

check their

severe test to

new

,1.

•

-i' P.

■>,*

■

Hj&Sjato

CHRYSLER

most advanced-cars—the Beautiful
Plymouth, Dodge, De Soto and
Chrysler models.

re¬

were

•

■

DODGE
PRODUCTS

starts more often than

experiments, the engineers

■■

%J;

Starting Test is another application
of the
practical imagination that is responsible for all the good:^hewv
ffiihgs^-tint cars
have pioneered
. . right up to the SafeGuard>
Hydraulic. Brakes, -SafetyiRim

robot-

The

your car s engine ever will!

It's

test.

gears.

trouble-free "starts" built into them.

^aitrplled^car xengine^ Lohed
the floor.
Sixdjmc^j every, minute it starts and stops,
at^lip^bminand of its automatic; f'drivW.?'

•:'

Plymouth

develop and thoroughly prove the
As a Jesuit, our car and truck
engines come to you with thousands more
better

they put their heads together and

created this endurance
/

They're the gear teeth that start the
engine—regular\york that conies day after
day, yearafter yepr, in all krads;pf weather. ?

able to

car

these ideas,

automobile engine's
teeth"—photographed with their

protecting
■•'■F.-i.'
K'Mfsi ik*

important

'.'"

...

OTHERSf jbilf'"0 Y

pcgS

■

/-AjkjfA£eAL

CORPORATION

«
.

Airtemp Heating, Cooling, Refrigeration

■:

v'-'-'

Chrysler Marine & Industrial Engines

•

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•

Vr."-.r-

Dodge Job-Rated Trucks

•

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Oilite Powdered Metal Products

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Cycleweld Products
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Mopar Parts & Accessories

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•

1947

Thursday, January 23,

THE COMMERCIAL & FINANCIAL CHRONICLE

G. A. Nelson Trustee

WASHINGTON, Jan. 22 (Special to the "Chronicle")—The. difr
of;the World Bank—be they real or fancied—-are being
cited as a good reason for going®
: " "
■„)'
..,
slowly in forming the ITO. It is already been reported in these
columns.
being pointed out here that in
Government circles interested in

argument is made that
should be lost, "Strike

time

before the iron cools off," is the
reasoning. But observers say that
to

considerable degree the en¬

thusiasm
certain
from

for

ITO

evidenced

American

the

salaried

anticipation

of highpositions
for

tax-free

themselves in the ITO, just as has

happened in the
and

executive directors of the

of the Fund

the Bank would be difficult, every
alternative is being explored,

Bank, FAO, ECOSOC, and the

like.

Walter J. Wade Opens

The
it

cases

may

suggestion is offered that
be better not to put so

much

pressure

for

ITO. If

countries
their

are

behind the

drive

allowed to make up

minds

stronger ITO

themselves,
result in

may

the

end.

GRAND RAPIDS, MICH.—Wal¬

Building, to engage in the

alternate

the

ago

executive

World

Fund,

appeared

committee

the

secur¬

Walter

are

Wade, President and Treasurer;

John

Karel, Vice-President;
G. Voss, Secretary. Mr.

Wester#

the

with

Michigan Savings arid Loan Asso¬
ciation.

Mr: Karel

with the.

was

few days

State of Michigan as State

the

before

director

Officers

ities business.
J.

Wadewas

formed

with offices in the Michigan Trust

and Mary

Mr. George Luthringer, Ameri¬
can

up on

sentative.-

staff

interdepart¬

National Advisory Council

Miss

Voss

nected with Merrill

Repre¬

was; con¬

of the

the

Lynch, Pierce,

Conference

Nave

North

ringer's views

tees.;-*;

will

the subject have

—

in EXECUTING ORDERS
^'' 1/

;•< -

-•'

f;v

""}

San Francisco Stock

•

{ p

JOhn

to be

perpetual dynamo of exuberance

Warwick

Every man has his ups and downs.

thing and often we make veritable jackasses out of
next time you start to mentally kick yourself

proper

The

of something you said or did that afterward you

the

•;

fool arid you won't be

influence

there

va "

act

banks,

are

the short term thinking

after several weeks of dull, declining

side

was

They

say

<jther place. Watch

firms end the board rooms

markets.

You would think

ready to come to an end after you talked with those

Or wait until

few weeks of boiling activity on the up-

of; the market have taken place—the optimism that exudes
.

from the same individuals is

this

of all of us.

lambs in W«$l Street than any

the faces around some of the brokerage

RATE
and

•

-|fjj

the last. IForget your problems and

; The constant fchariges and sharply, accentuated ups and downs
which are incident to the securities business often have too great

almost

form of fanaticism.

If you see things from

good to take the longer view.

vantage point they assume their proper

perspective

members

Securities Exchanges upon approval

be¬

President of the Emigrant Indus¬
trial

At the

Mary Lee Candies, Inc.—Common

after New York Close
.v-4

\
t

vr 4

•

Trading Hours
Standard Time

r r

'Ml-

Standard Time.
New York Stock

•*
,

fit;

>"
%

7:00 A.M. to 2:30 P.M. Pacific

—

Dexter

annual meetirig. of the

stockholders

of Institutional

Se-

eurities

Corporation, likewise
wholly owned by the
savings
banks,
the
following directors
were elected: Charles W. Carson,
Vice-President

Executive

The

Community Savings Bank of
Rochester, Fred Gretsch, Presi¬
dent of the Lincoln Savings Bank;

Earl, Harkness, President of The
Greenwich Savings Barik; James
H.
McGowan,
Secretary
arid
Treasurer of the Watertown

Institutional

TRADING SAN FRANCISCO
•*

Bank;

Banks Associatiop.

Sav¬

"Airline Foods Corporation—Common
*

Approximately 200 stocks on the
Curb Exchanges which are also

Prospectus

Corpora¬

announced

pointed out that Mr. lhlefeld had
assumed the' Presidency of Insti¬
tutional as a wartime measure arid
would henceforth devote his full
time to the management and ac¬
tivities of Savings Banks Tr. Co.

10:00 A.M. to 5:30 P.M. Eastern

Securities

that Robert E.
Pratt was elected President of
that corporation to succeed August
lhlefeld, who is also President of
Savings Banks Trust Company. In
announcing Mr. Pratt's election as
President, the board of directors
tion

Savings

Rumsey, President of the Erie
County Savings Bank of Buffalo;
and Robert M. Catharine, Presi¬
dent of the Dollar Savings Bank
and
President
of
the
Savings

ings Bank; John S. Roberts, Presi¬

application for such rate.

,^'i

Re¬

Bank.

Savings

yourself and acquiring the conviction of success is a
dent
of
the
Flatbush
Savings
matter of being honest with yourself. If you are convinced that
Bank; and Charles D. Swayze,
President of the Middletown Sav¬
you have a worthwhile service to render to your fellowmen THEY
WILL FOLLOW YOUR LEAD AND YOUR SUGGESTIONS.
No ings Bank. Following the stock¬
holders meeting, the directors of
man can win every day but he can always have a winning year.
lieving in

75% of the Public Rate
members,

Meetings of

Savings Bank; William H. Sayer,
President and Treasurer of the

can

So it is

IfCOMMISSION
NASD

member of the

they, will tend to forget you, v

Exchange

REFERRED

Street,
New York 16,
N. Y.), and a

Barker, President of the Syracuse

fellows.

National

(109

E. 31st

constantly

one

the world

Paper

Corp.

Savs. Banks Trust Go.

the

ADVANTAGES

Stevens-

Nelson

Annual

Advertising

don't have

heartily regretted, remember that you are not the first one to

v° v'»t' "«l''f"'»* j

Director

and

professiorial psychologist in Order to
Club of New
observe and understand the very subtle mental processes which
York,
The
George A. Nelson
are going on in people's brains from day to day.
You can see in
m
v,
*
Grolier Club,
a man's face the state of his mind.
You can hear in his voice "the and the Cherry Valley Golf Club.
extent of his confidence;
You can tell by the way he carries his
body and the life to his walk whether he is. weighted down by
indecision or is sure of his destination.
Recently wide publicity
has been given to the findings of certain scientists to the effect
that invisible waves: emanate from the brain much the same as
those sent into space by a radio transmitter.
Be this as it may,
At the recent annual meeting
most observing persons have witnessed the effect of some one
of the stockholders of the Savings
person's mental power upon others.
The effects of a single word,
Banks
Trust
Company, wholly
or
a
phrase, has changed the course of history. Think of the
mental courage and personal faith in victory that stood behind owned by the Savings Banks As¬
sociation of New York State, the
Winston Churchill's great inspirational messages to his country-*
men in the darkest hours.
His thought waves spanned the con¬ following were elected directors:
Paul
W. Connelly, President of
tinents, his courage and indomitable will impelled the Allies to
the
Fulton
Savings Bank
and
victory, and who knows but what Hitler himself read his own doom
Chairman of the Group V Savings
in the resolute and invincible belief of a man who could not con¬
Banks Association; Frederick W.
ceive failure.
< v*
You

around because

Nelson,

President

be.

ourselves.

ilMr.

brimming over with confidence. But above; all else it is helpful
to understand that no business runs along smoothly day after day.

Securities business.

the

We have bull markets and elected were Elliott M.
Eldredge,
bear markets in our own affairs just as in the securities markets. President of v the
Williamsburg!*
has opened offices at 404
None of us are perfect, we all make mistakes.
Sometimes we dp Savings Bank; John T. Madden,
State Street to conduct a

SYRACUSE,

Trade and Employment. Mr; Luthon

Board of Trus¬

Nave in Syracuse

meeting

Preparatory Committee of

International

of
A.

17,

Nelson

back in the beginnings of man's development.

Fenner & Beane.

and reported on the Fund's mis¬

sion to last fall's London

George

Jan.

others have suggested to you.

mental

the election on

announced

(Special to The Financial Chronicle)

ter J. Wade, Inc. has been

of the hesitant

some

check

of suggestion?

arises

officials

lyn,

the many times you have reacted to
No matter how much you may outwardly
take pride in your own independence of action you will find that in
all phases of your conscious activity you are doing things which
Did you ever

the power

This perfectly normal trait of human beings has its roots far
The ability|£o learn
World Bank, who constitute
in from others, to benefit from experience, to imitate, and to follow
fact a body of 12 presidents, are
a
trail rather than make one of our own, have been motivating
reported to be seriously consider¬ factors in building present day civilization.
Those who have had
ing what statutory changes are the courage to lead have always found willing followers..
possible - to make the post of
Here is where we find the core of successful salesmanship.
"President"
more
attractive
to
The basis of selling is a state of mind.
If you are sold on some¬
suitable talent,. Since amendment
thing yourself you can sell it. If you believe you can build a suc¬
of the articles of agreement
of cessful clientele for yourself, you will do so. If you think so, so
The

the ITO the

...

George C. Johnson, President of
The Dime Savings Bank of Brook¬

JOHN DUTTON

ficulties

Of Dime Savs. Bank

Securities Salesman

Snags there are reducing enthusiasm for International Trade Or¬
ganization. Bank directorate seeking means for making Presi¬
dency attractive.

request

the San Francisco Stock

Exchange

may

in 2Vz hours after the New York close)

•

be dealt
*r:

Herrick>Waddell & Co., Inc^
55 LIBERTY STREET, NEW YORK 5, N. Y.

Secure application forms for preferred - rates
of commission and the Directory of Securities
from member firms

the Exchange

Over-the-Counter Quotation Services

tie anriuai meeting of the

Savings
Bank
Life Insurance,
Council, of which 58 savings banks
are members, Robert W. Sparks,
Vice-President of
the Bowery
Savings Barik; was elected Presi¬
dent to succeed Joseph G. Munz,
Vice-President of the Hamburg
Savings
Bank.
Other
officers
elected were: Vice-President, Guy

Vice-President of The
Savings Bank;
Edward R. Ziegler,
Treasurer of the Bronx Savings
Bank; Secretary, Karl E. Kaatze,
Secretary of The Prudential Sav¬

L. Terhune,

For 34 Years

East

New

York

Treasurer,

Established 1882

NATIONAL QUOTATION BUREAU, Inc.
Established 1913

155

SANsdME ST.,

4G Front Street,

SAN FRANCISCO A, CALIF,
Chicago

ings Bank.
r
Sales of Savings
surance
were

New York 4, N.
-

\ San Francisco

Bank Life-in¬

1946, it is announced,

$26 million as compared with

$16 million in 1945. There is cur¬
rently in force $88 million of this
low-cost life insurance.,
•;

litilllrf
■

-••■

.-••'■

....

:/■; -j. ;:'J.H t.w •"'

for your delight / bring

haste

this famous Sunny

Morning Taste!

fiutLy *>*Lf\M
Uj(f lrU»L» M^iV t^U
fM/Uir*J<**A fuf ft* <llj

SCHENLEY

'-•!

mny
••

-;%s

"...

>.'<

Smooth Performance in

any
f

...

■&

^ y ■<.'

c*Zf{-,''.

Drink

SCHENLEY

Thursday, January 23, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

414

Business and Finance Speaks After the Turn of the Year
President, The Ruberoid Co.

materials industry, as to all business,

To the building

known since 1941.

From a period of shortagesfhe brew¬
ing industry is moving into a year of surplus.

assignments for the future, a multi-jet bomber, the
XB-47, and a defensive guided missile, called "GAPA"
for "ground-t'o-air-pilotless aircraft."
....
v.

HERBERT ABRAHAM

The company also is

1946 brought its inevitable quota^of postwar
Present indications are, however* that, |ha
jv,nation's economic ship is beginning

Approximately 60,000,000 barrels of beer were pro¬
by American brewers in 1941.
|

duced

types ^of

new

plants.

power

the year

experimenting with

1946; f approximately 84,000,000 barrels of beer
produced by the brewing industry, Tftis is far
below the present total theoretical capacity of 100,000,000
barrels. With most shortages and restrictions removed
in 1947, the industry may not operate at full capacity,
but it can be expected to produce more than it did in

'difficulties.

to ride

more even"

should

1947

were

HARRISON L. AMBER

keel and that

President, Berkshire Life Insurance Company

bring smoother sailing.
nation¬
for

materials

for

need

United

industry seems highly prom¬
To benefit fully from the
existing favorable conditions, how¬

there must be continuous and
constantly increasing production.

ever,

Having virtually no plant recon¬
problems, Ruberoid has been
to maintain fairly continuous
Herbert Abraham
operations during 1946. To augment
production, the company during 1946
added to its 11 factories an asphalt roofing plant and
version

always

its

insurance

life

That

President, Boeing Airplane Company

a further
premise to home

to come.
agree that the airlines are
functioning as smoothly as they
■were
before the war,
but that is
true with most industries. The air¬
lines are handling a much greater
volume of business than ever before,
and have been confronted with many
years

•

We all

The managements of the

portfolios

large

securities, which at

problems—some of which have not
been capable of immediate solution.
Give them a little time -and they

high-cost,

may

tion of averaging down
the

The full meaning of air transpor¬

tation, both for the moving of people
and goods, is just now being real¬
ized. With millions of potential cus¬
tomers still strangers to flying, our
domestic and overseas airlines this

same

available at

some

later

date

should

they

ing
Allen

the

This country appears to be

approaching the end of the
inflationary spiral that has been gathering momentum
over the past few years but a tightening-of-belts period
should |>e encouraged rather than discouraged.
It is high time for all of us to get back to realities, to
recognize that true prosperity can be achieved only
through hard work.

nation

lengthening

with

course

affecting

its control

life

are

ance

without

who,

termed the
His method is generally to
contact the individual and persuade
him to "buy" Insurance. By reason
of this approach to the business, the
business put on the books of the
companies is governed, to a large
extent, by the individual incomes of
the people.
When the national in¬
come is large, the amount of Insur¬
ance "sold"
(or protection bought),,
as a direct consequence is large.
The calendar year of 1946 is the
best
illustration
of
this
that the

handling.

declining cost of living

have

history

new

year,

Army* Air Forces.

fleets of its sister

| try and abroad.
During

the year, the

Boeing

new

| ten C^97>Stratofreighters5 Boeing has.
bobbers* the first of: which will be

key airplane rih theVAAFfs

postwar national defense program.

Now

sumption

standpoint,
anything

Jpected to be
for

Certainly

me,

this new year holds much of promise.

hold up to its high level

present, the Qovernment must expand huge'funds
not only to maintain our personnel abroad, but also to

and - con-f
1947 is ex-

but normal

degression the. sales; will gradually decrease
full force; until; we get into

of the

%■ maintain our

enterprises abroad, although 5they may, be

largely charitable,, and also to,
V to bring home our
•N

Edwin J. Anderson

Whenever

disband! our armies and

fighting men, 7

•

(

circulating in our economic
system, it means labor; it means the creation of goods
irrespective of the source of the money/ and even ^though
-

the brewing industry.

•Although production may not

nearly normal year. But it will be 7
nearly normal only in so far as ob- T
taining materials are concerned.

Similar

Affer

and will not regain their>
another so-called boom.

Superfort has^been designed to exceed the B^97 Tjpr From 7 the- production

in load, range and speed, as

Despite the existence at this writ- -

i only in outward appearance" to the famous Boeing B-29,
this

and will struggle to preserve their Insurance for the
protection of their families*1 therefore the! losses; by
lapses will be much smaller than in1 mid-depression.
f
^

ing of some shortages (notably tinplate for beer cans and soda ash for
beer bottles) the year 1947, barring
unforeseen! incidents, promises to be

T. W. Appleby

in its enJ#
—7.^ '

the industry has brewed
tire history in America;.

ordersfor 133 B»50

as;

of *

bottling machines turning out beer
for 1947 in a volume greater than

production activities.

Described

decade^ there Tb&tfv

T^imdihig;

meanwhile, continues to share

produced early in, the new year?

are

insurmountable

■

large responsibility f^research*development
In addition to

business affords* It

conversely by
•
Life Insurance in the early 30's.
Life Insurance will be governed in 1947 by general
business conditions. .:......
'v.
^
7
Another sirange thing in the Life Insurance business
is that during times of financial stress and business
failures the losses in Life Insurance companies from
deaths are much larger than in times when the popula¬
tion is profitably employed. It is true that in a period
following prosperity Life Insurance sales hold up to
some extent because people will have accumulated funds

1947, theyear of ^productivity is here. Above the blasts
oi"
heralding' the hew year, and theT clanging
falling shackles which have fettered the Amer¬
ican: brewing industry <for half a
H

Company's orders for

flagships of sm riiaiqr
foreign carriers, this first postwar"
super airliner will bring a substantial increase in speed,
comfort and operating efficiency over previous airline
equipment.

and

the

rich 20's, and proven
the very low sales of

din of

and

The Boeing company,,

way reap

EDWIN J. ANDERSON

shipi the Strata-,

than 75 million; dollars; 7 As;'a
States

in this

President, Goebel Brewing Company

the double-deck, 80-passenger Stratocruiser, increased to
"United

may

proven almost as definitely in
the first World War and also in the

was

Before the

~ ~

;>•

increased wages

1947 for the life companies

business

■

They

the

loyalty.

continuing good

problems.

peculiarity here is the under¬

"agent."

earnihgs

white" collar workers,

equally

In brief, prospects for

for

cruiser, will be flying the.

for their

reward

first postwar Stratof reighter has just been rolled

cut of the door for the

shared

received by labor in general.

Boeing enters the new year with a backlog of nearly
200 million dollars in commercial and mintary orders.

not

peculiar to North America;

writer—more* generally

better standard of living for life insur¬

employees,

probably

must not reduce the quality of

This country has built a reputation for
-quality! and technological achievement. However, in the
process! of producing outstanding products we must make
certain J that they are not costing more than they should.

end of the

particularly does this statement apply to the method of
distribution of the protection afforded by Life Insurance.

in recent years

corresponding increase in cost of

will resiilt in

products.

7 pur

the

Life Insurance is almost

com¬

(

President, The Ohio National Life Insurance Company

Fortunately, well-

volume of business available

American industry at a disadvantage when faced with
foreignj; competition.
our

country's return to a system of free enter¬
expanding market that has seen beer con¬
sumption double in the 12 years since repeal, and in¬
crease. approximately 22 million barrels in the last five
iyears, ; and with a theoretical total capacity at present
of 100;000,000 barrels, the brewing industry enters 1947
with high expectations for the most productive year in
its history.
*
With

have made it possible for their personnel to handle the

It is to be hoped that a gradually

from

prise, with

regard, due to the fact that more modern methods

petition. It is apparent that the great increase in the
cost of[ our products over the past, few years will put

time

1947 to

a production and sales standpoint, if not
profit standpoint. Many brewers if they
have not already begun plans for future plant expansion
can be expected to do so during 1947.

companies have succeeded relatively well in

managed

increased

same

also see in spite of high production and
a reduction in profits for some brewers.
fatalities can be, expected among the

may

number

also

produc¬

expectancies.

life company's

of expenses.

We must either bring a halt to the increase in the
cost of [ American products or give, way to foreign com¬

At the

continue

history from

become

the mortality experience of the life

third factor

The

this

will

particularly those who came into the
industry just previous to and dpring the war ; years. On
hand, in 1947, well-established brewers should
be able to make this year the greatest in the industry's

good showing here should tend to continue to offset
existing low return on investments.

is of

and

the other

panies promises to continue favorable and to some extent
the

market of the pre¬

The seller's

now

T. W. APPLEBY

consequence,

the airplane will plav an increasingly prominent role in
world commerce and in achieving world unity.

costs

However, these increases will be held
resistance and competitive

attractive yield

Constantly improving medical techniques
M.

Consumer
to that.

see

basis.

Wm.

consumption from

beer

off premise in 1947.

smaller brewers,

cost by additional purchases of

comparable, issues,

consumed

btiyefr's market.

1947

have been made with eyes open, and with the expecta¬

will correct the situation.

These purchases

selling considerably lower than now.

minimum.

consumption

low-coupon

time in coming years

some

will

beer

To assure consumption of an all-time high produc¬
tion, to further stimulate sales, the brewing industry
can be expected to spend more money on promoting and
merchandising than heretofore.

life companies recognize that

shift
or

vious half-decade is

witnessed the addition to their

amounts

action will

ments.

the past few years have

be expected.

can

building gets under way on a
larger scale. This should serve to improve earnings. But
with increasing availability of mortgage investments, it
appears inevitable that the life insurance companies as
a group will be more discriminating in all their invest¬

not

General price increases due to higher operating

amounts of mortgages as

transportation, despite a temporary slackening of
its recent unusual growth, will continue to expand during

volume

'/ duce

in the minds
have given
the matter serious consideration. This is a repetition cf
what happened during and after World War I.
The insurance companies will continue to be large
purchasers of both United States Government bonds and
corporate securities. They will absorb increasingly large

Air

more.

by the
than likely
provided that employment for all industry is maintained
at present or near present levels. The buyers' resistance
movement against high prices and inferior quality which
37 set in during the letter part of 1946 should have no
effect upon overall beer consumption volume in 1947.
However, the movement has already resulted in forcing
7 some brewers of inferior brews to improve the quality
77-of their brews and the movement will continue to have
7 this effect during 1947.
The movement may also pro-

official stamp of approval on life insurance
of thousands who might otherwise never

distributing

this

American public in 1947 is regarded as more

stride. " While

amounts

1946—several million barrels

only has the life insurance
industry done an outstanding job of
making John Q. Citizen insurance
H. L. Amber
conscious, but the Federal Govern¬
ment, in making available war risk
insurance to our armed services, has in effect placed an

WILLIAM M. ALLEN

the

Not

at Dallas and is ex¬
pected to be in operation during 1947. In addition to
increasing the company's total production, these added
manufacturing facilities will provide more comprehen¬
sive service to building material dealers in the Southern
and Southwestern states and are in line with Ruberoid's

have carried 1,000% more pas¬
sengers than in 1938.
It is evident-

life insurance industry

conversely the operating results
of
the
life
insurance
companies
should continue satisfactory.

factory is now being constructed

year

can

one

of change.

and

roofing felt mill at Dallas, Texas, and an asbestos-cement
unit at Mobile, Ala.
An additional asbestos-cement

stantial

able

*the

has

a year

it ap¬
pears 1947 will continue the change¬
over from a war economy to one of
peace, there appears nothing on the
horizon to necessitate any major de¬
partures in the operations of the
life insurance companies.
Granted
continued high industrial activity,
they should continue to write sub¬

ising.

policy of locating its factories at important
centers in different parts of the country.

usual it will be

the

years,

States

change

;

for the

the

Over

prediction

definite overall

only

make for 1947 is that

new

housing and property maintenance,
building products of every descrip¬
tion
continue to be in- mounting
demand, and the immediate outlook

the

About

Due to the unprecedented,
wide

there is money

3 '3 J (Continued

page 416)

yolum^ l^S

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'■ucxi.r.

AINEW
D

|F I N E R

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across
at

the nation

passenger

.tnodern Piesels will be moving Katy
freight

train speeds... hundredsof

vastly improved roadbeds will offer

new car

scrolling

extm^eryiceto and front
jf1

the great Southwest. In 1947 Katy's determined

afford the finest, the fastest.

♦

and the safest

♦.

full speed/ So when you ship or
travel, depend

serving

in the

your

over

transportation needs

strategic Southwestern corridor* \

♦

■

■r

program to

transportation

Katy,

de*

THll COMMERCIAL & FINANCIAL CHRONICLE

416

Business and Finance

Speaks After the Turn of the Year

charity, it creates demands

demand byVcreative enterprise. s
This is looking, forward for a year, and that may be
dangerous, but in spite of whatever may happen, the

and supplies this

Life

industry

Insurance

looking forward

.more

ex¬

in any previous year except, possibly,

than

pectantly
1929.

G. F. ASHBY
President, Union Pacific Railroad Company
1947 should,

I believe, see the completion of adjust¬
to peacetime conditions, and it is

'!y\"• "H

for

and

durable

seriously handi¬
capped throughout the war years by
their inability to obtain equipment
necessary
to properly handle the
peak wartime traffic, and the con¬
stant use of equipment during the
'war period prevented proper main¬
tenance, with the result that equipment has worn out more rapidly,
Railroads

Ashby
♦

were

causing the existing shortage of equipment. With the re¬
of locomotive and car builders to production for

turn

civilian needs

materials,
the

coming

shortages

position

and

uninterrupted flow of

raw

manufactured during

should substantially alleviate present

year

and

with

equipment to be

new

enable

the

railroads to

maintain their

the backbone of the transportation industry;

While rate increases

Baker

recently authorized by the Inter¬

state Commerce Commission

are

not sufficient to offset

outlook

bureaucrats who

impractical

able

economic

supreme solution for most of our
and industrial ills can be found in a

single homely and old-fashioned word: Work. Only
through the continuous exertion of productive effort-—
through uninterrupted and conscientious work, whether
in

factory, office or on the farm—can America hope to
regain that level of plenty and true prosperity essential
to

the

contentment

and

that^ only citizens of a producing and toiling nation can

by taxes; apparent lack of an over-all plan for a do¬
mestic and foreign air

transportation pattern.

This gives one an idea of what we are
without going into
tion

able
In

are

thinking about,

detail in connection with simplifica¬

reservations

generally, and the

adjustment to the

current

other things, such as competi¬

from 100 to 150 for

mile flown, and does not include costs absorbed

every

healthy financial struc¬

effect

to maintain

Each day it is becoming increas¬

ingly obvious that the

sound, logical route extensions, improvements in service

mate this costs the airlines directly

and

many

ticketing,

will

inexperienced in

phase of business they attempt to direct. We esti¬

railroads

depends to a great degree upon the extent of
prosperity and progress enjoyed throughout other fields
of industry, commerce and finance
during the year. There is a highlysensitive interdependence in Ameri¬
can
business—an
interdependence
which operates so universally and
automatically that prolonged cur¬
tailment or stoppage of work in any
one field almost instantly has a det¬
rimental effect upon all others. The
production and conservatian of life
insurance hinges upon general na¬
tional conditions in industry and fi¬
nance: When industry and merchan¬
dising flourish, money usually circu¬
lates widely and plentifully, and it
is only under the latter condition
that life insurance can experience
Geo. A. Bangs
progress and stability.

well-being of its citizens and
the wizardry of science, not
politicians and government, not all
the united power of any dominating group or class seek¬
ing the best for its members—not any of these can ever
discover, legislate or interpose a lasting substitute for
work. For work (in some form or another) is an im¬
mutable law of life, not of man; where there is no work
there is nothing. '
Gradually the trend of public thinking is swinging
around to a realistic appreciation of the sovereignty of
work. Americans, more and more, are acknowledging

the

which

are

What 1947 holds in store for the institution of life in¬
surance

that lays the golden egg"; too much^ interference

goose

used by the

conditions

our

and

materials

hopeful that the

costs

materials; adverse and unfair labor laws,
which we hope soon will be corrected; the necessity for
using ten men to do the work that five men did before
the war; lack of interest of some in labor's ranks in the
welfare of the Company, and the inclination to "kill the
labor

tion from charter operators and

Increasing

are:

the increased cost of labor and increases in the prices of

railroads, I

factors

unfavorable

The

primary means of transporta¬

tion for the distribution.

and

between

goods should remain strong and thus
maintain business generally at a high
level. The railroads will continue to
be the

■

operated

whole.

staple

convenient schedules,
with four-engine aircraft
major
cities
of
100,000
population and more, fed at these
points by what is known
as
a
"feeder" airline, serving the small
communities, which should maintain
passenger load factors at reasonable
and profitable levels.
frequent

of cooperamanagement
and thus enable the adjustment to
be accomplished to the best interests

tion between labor and

nation

""'VyUi

President, American United Life Insurance Company

opinion, the scheduled air transportation indus¬
try can look forward to many favorable trends, such as:
Early acquisition of modern post-war _air craft, Which,
in the case of National Airlines, is
Douglas' 300 mile an hour DC-6, the
delivery of which will begin in April
of this year;
intense development
and rapidly increasing volume of air
freight; on-time all weather opera¬
tion of flight schedules; continually
better mechanical operation;
more

hoped that the year will see a greater degree

Demands

Inc.

In my

ment from wartime

of the

National Airlines,

President,

GEORGE A. BANGS

G.T.BAKER

(Continued from page 414)
the money is being spent for

Thursday, January 23^1947

tariff

structures,

surface carriers, all of

undoubtedly important, and have consider¬

bearing

airlines'

conclusion,

revenues.

believe the

businesses.

Not

all

all the cleverness of

hope to possess the things men need and crave. If 1947
is to go down as the year in which Americans went to
work as fervently to produce the materials of peace
as

National Airlines

their

they once did to provide the arms of war, then 1947
a successful year for everyone.

will be

ture.

outlook is good.

(Continued on page 418)

Volume 165

Number 4562

[THE COMMERCIAL & FINANCIAL CHRONICLE

V¥*»W- M

•f

(Continued from

have

ing

page

396)

selfish interest in
help¬
the low economic

raise

areas-—not

donations,

which

make for a soft
people and a weak
nation, but by helpful advice, sug¬

gestions and cooperation.
In

other words, in order to
the goal we must
reach,
will we hot have to create a
prac¬
reach

tical operation in
accordance with
the principles of the Golden
Rule,

stem i

an approach to a
realization of
the true brotherhood of man?

Year of Lost

think

Opportunities

will agree that

our

own

great country is still in a
state of confusion. We can
surely
look upon the year 1946 as the
year of lost opportunities.

had

all the basic factors
should have insured a
pe¬

which

riod

prosperity,

the

which the world has

However,
tinual

never

bungling,

con¬

kicked

seen.

due to severe,and

our

chances out the back door.
Over

been

the

years, industry
to
absorb
wage

able

creases

has
in¬

at the average rate of ap¬

proximately 2.2% per year. Last
industry was called upon to

year,

absorb about 15%. This with
price
controls in effect at the time dic¬

tating prices
tions

had

low, many

carried

opera¬
at

loss.

Industry,
very
one

as we all
know, is
interdependent. What affects
industry eventually has some

effect upon all the rest of indus¬

try,

that

when strikes in

even

one
industry are settled, strikes
in other fields limit the
supply of

material

raw

and

parts

duction

output

materially cripple the total

pro¬

sorely needed.

Lower

production
efficiency
added to the large
wage increases
to

produce

high

necessary to
sales, prices

costs

made

substantially increase
(where

permissible)
curtailing the abiL

to the point of.

ity of the public to purchase.
Labor Demands
If

labor dem'ands

■

time, the economic result

this

will

that sales prices will have to be

put

such

high

make the market
appear.
sure

Such

level

practically dis¬

situation is quite

produce deflation, unem¬

ployment and depression.

One

shipper tells another: the

on-time

the West and Southwest is

The Nathan Report, which has

recently been

much before the

public, has been indicated to be

biased

very

multitude

one,

setting forth

half

truths

—

Here

road
•

•

fact.
If the labor leaders
I

and

believe

they

are

sincere,
in

are,

their

«.

statements that they have the wel¬
fare of. all people in
mind, as well
as their

% •

•

members, they, have the

opportunity of making
dous
of

mr% i

faking ^ditioh^:demahdsLfbrat
least

year,

would

•

give

business

•

and

industry-tui opportunity to become
stabilized—to increase production
and
.

efficiency-r-to realize

costs-;—- all

prices.
>

•

lower

We have

stantial

resulting

already witnessed

declines

some

(Continued

on-

ship Santa Fe»

reasons

Santa

page

food

419)E:

•.

•

>">,

world's

largest fleet of giant 5400-horsepower
freight diesel locomotives.
more

double track than any other western road\

Centralized

Traffic'ContrdT enabled

and pass

non-stop.

WotldlS; largest private% telephone; system/, to keep
shipments moving more swiftlyr
increased

yard capacity, and improvements along
as curve
straightening, new bridges,
longer sidings.: C;
-r O
f- f ' /

the line, such

■

It all adds

•

••

tb getting what yoii,•
it, when you ship Santa Fe,

when you Want

sub

pHces^r-Others. ;are: surel to, follow
Through TK3$\i^mmcwr^ehseE^
\

of the

language for "on-time performance"):

to meet

'hatiph~by" refraining from

./{This

some

a tremen¬

cpntributionr to. the: welfare

the

are

better

and from

keeps
freight service "on the advertised" (which is rail-

with

many statements without basis of

way to get

delivery of freight shipments

S Y S TEM

Serving the- Wetland Sovthweit

Santa Fe

417

THE COMMERCIAL

416)

the

plant's

cides and fumigants will call upon us to produce la g
quantities of these hew products and, in turn, will.unfmPQfirmahiv mpan torpatpr rron yields.
:v- "
'
X

for the
A
'•
capacity to produce between 250,000 and
year; ^he,question is when we will be
capacity production. Automobile produc¬
manufacturing

and

efficiency

greater safety and convenience of employees.

A.E.BARIT

We have the

300,000 cairs a

President and General Manager, Hudson Motor Car Co.

able to achieve

optimistic on the business and motor car outlook.
the necessary elements for prosperous conditions

All

tion

situation, and

that

statements

production} that has been
through extraordinary
than anticipated for the pro¬
curement of material.'We have nb assurance of better
conditions in 1947, but we are hopeful that the situa¬

this kind

anticipated.

There most certainly

availability

legitimate needs

of capital to finance all

All that is^ needed to maintain these

continue

conditipns is public confidence and a will to
working and producing.
It

true

rective process at work,

of some things have risen"

t<l

let

none

;

healthy economy for an

repeat that restraint must

is exempt.

•

I am particularly optimistic regarding the

market of the future. There is an
for

and people

automobiles,

means

Automobile

unprecedented demahd

are

of the

Jpo^ition

in possession of the

has spent and is

chinery, presses and factory equipment, in

order to add

the only

persons

power

is shifting to the leaders of the pressure groups
The

control votes.

men

who would like to

may,

danger in this situation

is that

overturn our economic

system

this country a system of secret.

could impose upon

police, a complete sub¬
to government and

servience of industry and commerce

to take part in this production. In addition^ we

of personal

eclipse

agriculture by the chem-

attain such a

has happened in other countries,

degree of political power that they

liberty.

It has happened else¬

where. It could happen here.

ical industry during, this yeaV. The Wide acceptance by
agriculture of DDT and other new insecticides, funga-

spending millions of dollars for neW ma-

conceivable
who will ■ be
able to afford to buy automobiles
are the people who make them.'V
}
Looking to the longer future: In
the past men struggled for economic

that

who

the chemical industry will be in a good

foresee expanding service to

purchase them. The Hudson Motor Par Co.

war years,

shall

mobiles remarked: "It is

power

ih a good position tb produce heavily during 1947 and
that .there will be a large, solidly basgd market for these
products. 1
. .:•
*
/ ...
With stock piles fairly well replenished after the drain

bb exercised by all—

through the acquisition of
wealth; and economic power often
meant some degree of political power. But today wealth
no
longer possesses political power and the political

do not believe this will re¬
immediate widespread recession of industrial

fictivity. Barring a sejrious wave of strikes or other simll^r-difficulties, it now appeals that all Industry will be

indefinite period. Please

becomes

economic sys¬
arrive at prices so
high that "consumption will (be re¬
duced,
unemployment necessitated
and the general standard of living
lowered. As a manufacturer of auto¬

Neal Dow Becker

prices- at the close of the

consumer

and

course

tem,

facilities!

&ome leveling of

was

year, we

sult in any

in check We can sus-

restraint and keep our emotions
tain

Leonard T. Beale
.......

proper
v

its

de¬
raises runs
in effect a

excessive

chronic ailment of our

material dDsitions would

expansion of

leadership- If .a
of

round"

mands, strikes and wage

development-of new prod¬

and

While there

timely effect

exercise
v
,

the entire economy. If we all now

ucts

guided by the law of supply and

demand, which will have a wholesome And
upon

"second

the

permit,

that' the prices

labor is intelligently advised by its
follow, intelligent

rapidly

others, biit there are indications of u cor¬

than

supply

leaders and whether it is willing to

commercial .market
with chemicals during most of the
year. In the case of Pennsalt, this
also enabled us to begin at once pro¬
duction of many If the new productsdeveloped during the war, such as
DDT and f#u6rine>,>and to push,, as
to

...

of the- economy;

whether organized

facture, the" chemical industry as a
whole was in an excellent position

present economic con-'
A. E. Barit
Among
the
evidences
of
strength are
the Overwhelming
need for goods
the necessary capacity to produce
these goods, which also means jobs for all . . . and the
our

dition.

Corporation

year

Largely free from retooling and re¬
designing necessary; in'■ most manu¬

healthy I

are

time year.

BECKER

Intertype

1947 could be a good year, for U, S. A,
Whether it will be a good year depends primarilyupori
The

faith.

signs in

President,

Salt Manufacturing Co.

Despite serious interruptions resulting from strikes in1
other industries during the year, the Pennsylvania Salt
Manufacturing Co. sales volume for 1946 was very good,
v
approaching that of our biggest war¬

psychological beginning for
a
deflationary period. But nothing]
has happened to warrant such a loss |

NEAL DOW

•feLEONARD T. BEALE

have the

to come.

years

President, The Pennsylvania

misinterpreted.and!

can

The

improve.

are

actually cause the buying public to!
lose faith in the future. Yoti then!

will

tion

Tool

predicting a spiral-l
ling .inflation5followed by "an in-|
evitable
deflation."
Prophecies of 1
people

many

the war years,

prbiod in our history, proved
the value of research to American industry and public.
Despite the gains from 1940 to 1945, much yet remains
to be done in these fields, and we feel that many de¬
velopments will be forthcoming during 1947 and the

perhaps the greatest; of any

been

effort and at higher cost

avoid!
might!

confidence.

fend to shake that

the entire industry—has

achieved has been accomplished

thoughtless

Hudson—and

than

less

present in our current economic aituatioh;5 However,
must guard public confidence
in the future, which goes hand-in-

are

hand with such

Year

Speaks After the Turn ol Ihe

Business and Finance
(Continued from page

Thursday, January

-fc FINANCIAL CHRONICLE

(Continued on page 420)

■vs.v#mx&r).

OF THE CARIBBEAN
*

OR:

nearly half

-v

a century,

• -if'

•

the

ehter

bat

Americas.

is feager to

ydur disposal.

ahd aShbre, the
r

period of world rehabilitation of trade, this fast,

service is

modern vessels of the United Fruit

any's Great White Fleet have been serving the
:

experienced personnel of the United Fruit

bang its collective experience to bear on your

-i^ter^AMfericalti'shipping problems. Everythii^; calculated - to insure
X

■

prompt

•'

piers,
^

and expert handling of

here

cargo

aboard ship and at modern

ind in the American Tropics, is

at your

service.

New,:|iilly refrigerated vessels are now in operation and more ar^
being launched. In the hfear fjuture the

{resume its passenger sailings tb Middle American coiinI

;
✓

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COLOMBIA

COSTA RICA

HONDURAS
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Federal Reserve Bank of St. Louis
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UNITED FRUIT COMPANY II

General OiRcieat t Federal Street, Boston
*
•

* *•■■•,

'» :

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In New York: Pier 3,

DOMINICAN REPUBLIC

★

CUBA

JAMAICA,

S. W. I.
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North River, New York 6

ECUADOR

* PANAMA

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EL SALVADOR

* "PANAMA / CANAL ZONE
V ;• ' "V7■ 7/' ■ >> /" f*' " ••• •' ' V:

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Volume 165

-■

•

■

Number 4562
•;""tv

,'*^ >;•*■,•>;,'.ty;f /■>.?**•

■.>■-■

'■

•■'">"'•• .'•'.:v. .'

The. labor situation.is a- must to
receive attention. Under the Wag-'

Also,

Act, union leaders are given
power
than the Federal
Government. This has been dem¬
{Continued from
purchase

value of the dollar, would be in¬
and we would maintain

creased
a

page

417)

very much in earnest and with

onstrated a number of
the last several months.

must

revised

times
basis

back to some resemblance of

It must limit such power.

both

labor

and

management.

nomic stability.
Some things have already been

wi^ke labor an^ labor loaders

portunity for prosperity for quite

done which are

constructive, such

labor

the abolition of the OPA, mak¬
a return to the opera¬
tion under the natural .law
of

laws.

op¬

substantial period of time.
Public opinion seemed to

as
ex¬

itself quite clearly at the
election, which I believe had
sobering effect upon all of us.

press

last
a

Wrecking
Private Enterprise

supoly and demand.
The

declaration

automatically
trols

The years of
experimental legis¬

lation,

affecting our. democratic
way of life, had approached dan¬
gerously near to wrecking the

responsible

and

It must

the

Congress

certain

that

should

government

can have
great hopes
expectations that this Con¬
gress will make outstanding

and

anti-trust

prog¬

along constructive lines.

are

ever

the

the Presi¬
which

removes many con¬

restrictions.

Policy

Many re¬
main, however, which should be .providing • a substantial sinking
quickly as possible, if fund for debt retirement.

removed as

known,

nation,

Minn.) who, as Chairman of the
House Ways
and Means Commits

tee, is head of the
Senate-House
Budget Committee created

under

the

Reorganization

Act,

news

told

conference on Jan. 12
that
the joint Budget
group was plan¬
ning early action on
President

Truman's

$37,500,000,000 budget
a view to
thoroughly over¬
hauling it, according to Washing¬

with
ton

Associated Press advices the
day, which went on to say;

The

operation for
time.

substantial period

Senate

gress to
purse

members

this

Law directs Con¬
take full
charge of the

strings.

the

Chesapeake & Ohio

difficulties

our

group, 1 Chairmen
Bridges
(R.The Congress must establish a ing low cost, cannot solve.
;
N. H.) of the
Appropriations Com¬
definite fiscal and /public debt
If labor is thoughtful, construc¬
mittee,and Milliken
(R.-Colo.)
policy,; which should be on a tive and cooperative, there lis no of
the Finance
Committee, agreed
clean-cut
business
basis, and reason why we should not experi¬ in
separate interviews that the
should include a balanced budget, ence a
high level of prosperous Reorganization

the envy of all the rest

.Through all

;

of the world.

experienced

#-**»

same

irom faults, nevertheless the fact
remains that it has built the
high¬

living standards

,'V: W

have

whole system of free
competitive
While no one
claims that our system is free

which

«»'

To Overhaul
Budget
Representative Knutson (R.¬

rip problem which
high, efficient production, produc¬
,

private enterprise.

est

stable fiscal system.

ress

Fiscal

possible.,

I think we

industry, and make

amenable

ing possible

dent of the end of the war,

Experimentation
.i

eco¬

quickly

spending is materially lessened
and curtailed,. as this is the
key
to lower taxes, reduced
debt and

fair

more
nearly balanced economic
program which could carry on and
realize at least a part of the

reduction in taxes should

addition,

make

This Act

quiet determination to see' the
things done which will bring us

be made

We will all agree, I am
sure,
that no perpetual debt should be
tolerated.

Wrf-

ner

wages or the

w:'L»

Ill'

proach, real

.THE COMMERCIAL" & FINANCIAL CHRONICLE
iLahor Situation

■

Mifculd

.:■

alarming, .complacency has been
exhibited by a large proportion of
our. population.

Vjfc fr

Can you imagine the people of

Pittsburgh taking without protest
the difficulties
they have recently
experienced if it had happened
15

ago?

years

You

Yet, I understand

during the-recent serious situa¬
tion, when a protest meeting was

Credit

on a

Card. Apply for your C & 0 CreditHard now!

one

phone, then

space

youMard the train, charge It

called, a mere handful of people
responded. Such an attitude is a
dangerous one for us to get into.
Along this line, how many times
has each

can reserve

heard the state*-

* ment by intelligent' people, "We
have always come out of a situa¬

tion like this and

yery

...

stupid

always wilL"
point of

from

view**

(

JUST A PHONE CALL WILL

NO NEED TO STAND IN

Things have materially changed

—maiiy for the better, which we
would not alter, but many of a
dangerous character. There comes
<i
time when we must expect to.
work

able

our

back to

way
basis.
I

firmly

HOLD

LINE AT TICKET WINDOWS

believe

RESERVED-SEAT COACHES

country

COO CREDIT CARD (OR

PAYCASH)

have the kind of government

and

TRAIN AND USE THE NEW

FOR

yOU,OR SPACE IN

reason¬

can

PULLMAN*SPACE

THEN SIMPLYBOARDTHE

want, but

we can¬

not have it by
sitting on the side¬
lines with an
attitude

o|? "let

George do it."

■

Citizenship Responsibilities
I

firmly believe as an insurance
the future every citizen must
recognize his responsibilities and
take a greater interest and active

part

government

and

politics.

yie should

know our representa¬
tives in government and endeavor
to be helpful to
them, both di¬
rectly and by taking an active part

such

bers

activities

affairs

local

commerce,

committees,

cham¬

government

and

through

other mediums.

I believe the

;

greatest heritage

we have is the
right to vote, but
too many of our
responsible citi-

zens are. the
exercise this

ones

who

fail

privilege.

Let

to
us

Wake up to the realization that this

is what

originally fought for,

and to defend this
right have gone
to battle
many times since. f We

For

SOME Ohio weeks ago the intention
six
Chesapeake,

name

installing, for its

your

and

announced its

passengers,

simple

Pullman
and

Credit Card plan and space reservation
by

charge it

phone;

pay

come

active to

see

that

neigh-

our

| fcors vote? f
I
Re(^qt;l^ - I /had an bjJporfftmtjr
of
.tal)kipg, jyith ; a npmber of the

that plan is

here^ It-goes into

pew; leaders of

delighted
pot
,

Congress.;

find

that

I; was

they

lcroi|ing: upon

tnarily <as' a
but rattier as

the election priRepublican victory,
a real
protest agairfet,

|urfh&r jexperimei^ation and
that

are

thi^ idea is

ieader^-do

feel;

causing .the

even a

longer do

valuable time

you

have to spend

work

•

are

You're invited

cash if

you

C & O Credit Card

Credit

or'

your

longer^'dash: down
C & O does all your

ing for

scurrying and

charge it

worry¬

your

ticket there;

...

C & O
any

•

or;

write

Chesapeake

today and take immediate advan¬

tage of this

Credit Card if you prefer.

And there's another

do is reach for

phone. For

nowT^md jthfe is new-^yoUjCaa. - reseicye
space in

on your

Just call

The

new

traveling convenience.

"Charge-It-As-You-Go" Plan is the

latest—but not the last—of many far-

reaching improvements pioneered by the

you.

All you

Do it

your

Go to your reserved seat on the

train, and pay for

away.

&
Ohio, Terminal Tower, Cleveland 1, Ohio.

Coaches,

simply telephone in advance, giving

to the:

statiori to pick', rip^oiir ^eservatioiisl The

apply for

Chesapeake & Ohio Ticket Office for

prefer.

application

name.

Card, right

reserVed-seat coaches

Pullman* space.

;

„

well

to the

important feature

Credit Card. You

can

use

charge

in the station. This includes meals in

dining

„

new

any

cars

C & 0 service

and baggage service.

the traip

Chesapeake & Ohio to make rail travel
more

comfortable,

sensible.

*To hold Pullman space by phone, it will be
necessary
to have a Credit Card. Pullman space,
if not used,
must be properly cancelled, or it will be
charged to
your account.

■>

„

new.

CHARGE-IT-AS-YOD-GO—ON THE C&0

ap¬

soberly—

r
i

de~

on your

For Space in Reserved-Seat

waiting in ticket lines;

greater; re^

ipcinsibility^^feerIth^y
proaching their

Apply for Your Credit Card Howl

your

Go to

effect: the 27th of this month.

•

phone in

Card number.

reserved space aboard the train, and

patmoit jafford :tp.
lb^e this, right
Should jwe not miake a firm; reso^
lution to vote ourselves and be¬

Space,

Credit

THE

CHESAPEAKE

OHIO

RAILWAY, TERMINAL

TOWER,

CLEVELAND 1,

m--

OHIO

(Continued/from

President

page 418)
WALTER H. BEECH
and Chairmaii of the Board, Beech Aircraft
Corporation

much flattered to be consulted again in
connection with the outlook for aviation during the com¬
ing year, I again must disclaim any ability as a prophet,
I

very

and it should be clearly understood
'■

personal opinion.
the year 1946 a great deal of
progress has been made by manufacturers in connection with the con-

struction and testing of new types
which have been designed since V-J

■■

£ jO

Bmmm that anything that I say is mer ly
gfl I
4H|

Day. Very few people outside of the
military services and the aircraft industry. understand that it takes from
two to five years to
bring out a
new model airplane, depending upon

the

,"~"7

over

ing the year 1947. The greatly in¬
creased
utility of these airplanes
good market

H: Beech

dp*

Model

J The market for small two-place personal airplpnes
already has become very selective. This is partly due to

President, The Brunswick-Balke-Collender Company
1946

decided buyers'

established

But

that's

the

Past>

and we must now look to 1947. The

■*|

PPBf>

ever

gppt'vjBi
8fc&HlFr JHe

four-place airplanes are very

made-

only real

business purposes in the four-

superior
in utility to anything previously offered the public. They
are expected to make significant changes in the opera¬
tions of many businesses, and I believe that the market
for them is virtually untouched. They particularly will
appeal to the businessmen in the small communities who,
up to date, have been by-passed by all first class types
of transportation. The low operating cost of such fourplace airplanes and their high operating speed places
at the disposal of businessmen everywhere first class
transportation at a Cost that they can easily afford.
:?
During the new year quite a few of the new airline
transport should make their appearance as replacements
for the old DC-3's which are serving as the work horse

of "might have been"; if labor and
been able to settle their differences

year

been

place size are just coming on the market after delays
due to strikes and other dislocations of industry during
new

amicably and if the government had left them alone to
do
so,
much progress might have

duced schedules, til

These

was

management had

The companies with the
most advanced designs are selling such airplanes as
fast as they can make them, whereas other companies
are
finding difficulties in operating with greatly re¬
preference for certain types.

Post-war airplanes for

all

over

world.

the

These

young

ing the many millions who make

progress

that mankind has

made has been by hard work—

and ** we are willing to quit wish-

s*ar^ working we have

an(*
It is my

Mtk-.

opinion that 1946 was the

last of. the lush years and that from

now
ucts

we wil1 be

and

our

soling our prod-

services

critical

public who will demand full value
:

for their money.

what

demand

And that is exactly
manufacturers should

those

from

whom

We must get a dollar's worth
material, or a dollar's worth of
effort for every dollar we pay out.
buy.

Bensinger

before.
still

There,

some

well

in the United States, there are
corrected in

taxes which should be

laws and

order to give this form of recreation
for growth which it deserves.

gether,

and

each

in his

one

own

Bowling has

industry, however, has a big job to do in connec¬
some of the present billiard rooms.
A very
few poorly operated "pool rooms" have given the sport
a black
eye and have resulted in unfavorable legisla¬
tion barring minors from the good as well a's the bad
billiard rooms.
The Brunswick-Balke-Collender Com¬
who have led the industry for 101 years, and who
largely responsible for the present day bowling alley
establishments, are elevating the game of billiards to its
pany,
are

proper

stars

place in the field of recreation. Such outstanding
Willie Hoppe, Charley Peterson, Willie Mosconi,

Irving Crane and James Caras are touring the

type of billiard
way!
Just

room

available, many communities are planning to erect "Liv¬
ing War Memorials." These are recreational centers con¬
ceived by two of the nation's outstanding designers,
Donald Desky
of

of New York and Edgar Lynch, Director
Architectural

Brunswick's

centers will

both

serve

our

heroes

and

produced

IN WOOLENS

upholstery fabrics

Blankets

Uniform fabrics

Machine and hand

knitting

Staff.

These

recreational center for the com-

FOURTH AVENUE, NEW YORK 3. N. Y.

wear

Research

Living War Memorial for

(Continued on page 422)

GREATEST NAME

Women's

and materials are made

manpower

soon

for the whole family, for it's on its

and worsted fabrics

country

giving exhibitions and instructions before college stu¬
dents and YMCA groups.
Look for an entirely new

g
•*

225

car

league.

morale builder during the
war years—both at home and abroad—and today many
government rehabilitation centers are praising both bil¬
liards and bowling for their great therapeutic value.

received glowing tributes as a

superlative facilities for producing them

wear

public

bowling alleys left a great deal to be
desired as a family gathering place.
Today, however,
it is not unusual to find the entire family bowling to¬
rooms

leadership of the American Woolen

THE

the opportunity

It cannot be denied that there was a time when
billiard

This is fundamental.

in the woolen
'

bowling the largest

participating sport in the world. Our servicemen who
are stationed abroad are bringing bowling to many lands
for the first time, and it is being very warmly received.
In the past year, important installations have been made
in Germany, Japan, and Italy. Central and South Amer¬
ica have also shown a much greater demand than ever

"tightness" of style and quality
£ (

folks have become
join¬

enthusiastic about this form of recreation and are

acknowledges two prime considerations:

industry for

tion with

R. F. BENSINGER

• -

seasonal conditions and partly due to a

The outlook for the billiard and bowling

1947 is very promising. There are millions of young men
and young women who learned to bowl and to play
billiards in the thousands of recreation centers set up

The

the utility of pre-war types insures a

for them.

1946.

twin-engined BEECHCRAFT executive
transport, and the prototype of the new 20-place short
haul air carrier transport BEECHCRAFT should be fly¬
ing before the first quarter of 1947 has ended. Produc¬
tion of this new model for delivery to airlines probably
will hot occur until late in the year, due to the extensive
testing required. BEECHCRAFT at present has a back¬
log of business approximating $30,000,000.

its complexity and size. It now apHSk; pears that quite a few new and immmm
proved airplanes will be available
to the public and to the airlines dur-

Walter

erate, at .lower cost per passenger-seat-miie and offer
better schedules to the public. They probably will not
be built in sufficient quantities to replace the majority of
the airline transports now operating, but they will con¬
stitute an important market potential for the aircraft
manufacturers. The construction of new military types of
aircraft is rather selective. Many new types are in the
design, testing, and prototype stages and some of the
airplanes will emerge from that stage in production
quantities during 1947. The cutbacks in Army and Navy
military budgets have reduced some of the planned
orders for new military aircraft, and I feel that it is
possible that some of these cutbacks may be reconsidered
during the year.
Speaking for BEECHCRAFT,
our
new
four-place
BEECHCRAFT Bonanza will enter volume production
in the early part of 1947 with a backlog of 1,500 airmlahes now on order. Production will be continued on

■

...

for 'all the airlines at present. These new types will

gjjlB

v-• j-.vt

1947

Thursday, January 23,

THE COMMERCIAL & FINANCIAL CHRONICLE

yarns

Volume "165 -Number 4562

THE COMMERCIAL & FINANCIAL
CHRONICLE

Labor, Capital and the Stock Market
(Continued from page 392)

rected so much againstfree enter¬
%
became
employees. prise and its representative insti¬
The corporate stockholder, on the tutions, as such,; but mainly
other hand, as such, is no substi¬ against its incentives, viz., a profit
tute in political influence for the margin which capital would con¬
numerous
sniall business propri¬ sider an adequate and commen¬
etors he has displaced.
Besides surate with the risks involved.
he seems amorphous and
negli¬ Moreover, an urge for ever greater
gent of his corporate interests. political power is also evident.
other

Moreover, corporate behavior is
also
increasingly controlled by
heavily taxed salaried managers.

the exclusion of two Great Il¬

lusions

Causes of Labor Inroads

several smaller

ones:

1. That the wage earner-worker
is tied to the capitalist order be¬
he

cause

possesses

house,

washing machine and

automo¬

bile.

That because he may own a
bank account, insurance and war
bonds he is a devotee of the the¬

ory

means

Labor inroads into free enter¬

and

has

private ownership of the
of production. In
fact, he
fear

whatsoever

that

They represent business nowadays prise have also other causes: "In¬
and it can be said that they are tertwined with the motives for
employed
by
capitalism
much union membership is the almost
more than they are capitalists in
universal desire of workers to tell
their own right.
Salaried man¬ the boss -to go to hell'say two
agers are more and more inclined able labor economists, Clinton S.
to get closer, to organized labor Golden and Harold J.. Ruttenberg

eventual socialization of the

rather

where Labor will encounter Man¬

according

It appears from following
that

social

other

name

tham

crowd

the

almost

Power Increased by

Urban Masses

This mental attitude

Political power has thus suc¬
cessively passed, excepting for the
farmers, into the hands of salaried
urban masses, and they have at¬
tained an overwhelming numeri¬
cal preponderance in our social
structure.

Urban

masses,

or¬

ganized or not, are very volatile,
with rapid corrosion of traditions
customary ideas.
They be¬
come
easily class-conscious and
have a marked tendency to drift
to the left in ideology and politi¬
cal affiliations.
Political parties
follow the same direction; conser¬
vatives expropriate political pro¬
grams of progressives and liberals.
The right shifts more and more to
The "Union Reporter," a
publication, declared a few

the left.

distinct

entities, with different in¬
talking nonsense. Labor
is the people." Union Readers pro¬
fess

are

the

beliefs, of

same

course.

Such is the general note.
This does not

that,

mean

neces¬

sarily, labor became revolutionary
ice

free

are

A. M.'s

showdown

2. The masses cannot be wedded

liance alone would also be
weak foundation for
many

institutions.
for :

desire

differs

con¬

United

States

disaffection

change,

con¬

Examples

than

held at

the

point of the line cations

bought

and

the

his

the

same

proceed

come
come

worth

$11,000,
$22,000.

Capitalism
which

feed

some
our

modem

cannot

urban community

spontaneously

still

the

The fact that the influence of

urban labor is

genuinely hope that

markedly anti-cap¬

italist is amply confirmed by re¬
cent

and

least,

a more or

only $1

terest

and

movement is to drive for the

protracted

duction of

heavily
tional

re¬

Viewed

profits and to influence

the

distribution

income

through

Modern labor tactics

are

imum

na¬

taxation.
di¬

not

Indian

Summers

for

free enterprise, should be the min-

expectation

from; such
are

capitalism

bonds,

iiR E D G I N

GRAPEFRUIT
Made Possible

Filling, Land Reclamation,
ft

Canals and Port Works
;A--f

.•

Deep Waterways
and Ship Channels
^

•

execute

all

kinds of

r>R0Ufa

time

River and Harbor Improvements,

msT

dredging, reclama-

work anywhere in the United States

omo*

Contractors to the Federal Government
Correspondence invited from Corporate and Private
'"'7
Interests Everywhere^'W.'

Very Fast ADVANCED Freight Service

Longest Experience
...

Atlantic, Gulf and Pacific Co.
=•::

New York

15 Park Row

j ;

•'

f ,J X

;,;-r "

•
.-iX 11"n XXfi
-

'■-■'■•X f-\

■,

-v'"-

7777 Houston 2, Texas

X7'
'i

'•

Citizens State Bank Bldg. ■

--P" X (t'

y.'l

l "y

are

(Continued

PROVIDING MARKET DELIVERY IN NEW YORK ON

THIRD MORNING AFTER FRUIT IS LOADED

still

different

mainly

respon¬

depositing their funds in

FLORIDA ORANGES
and

sible, conservative ; capitalists in*
vesting in the highest grades of

TREE-RIPENED

permitted,

in¬

every

angle for which, inherent features,

meeting of minds, half-way.# All

hopes to this end

for

from

less temporary

long breathing spell, i aisbrt of

investors in

and salaries.

compromise could be found at this

The obvious tendency of the labor

enterprise

capital formation

$8.40 paid to employees in wages

history. strategic point of the battlefield.

contemporary

$50,000 in*

dividends

This is

solution or,

sales in 1945 of $30.6 billion, paid
out

It's

pious wish of all those who

bal¬

accumulation, is equally seri¬
ously crippled in other directions;
For instance, for every person em¬
ployed in the United States, yes¬
terday's investors have put about
$6,000 of their savings in business
—this being the venture capital
which made this country great—
for buildings, material and tools.
Yet, industrial corporations with

the road."

The middle of the road?

re¬

maining backlog of capitalist val¬
ues.

had in the past.

closes

and

aim to go right down the mid¬

dle of

generate

acceptance of the

mass

active

free

or
on

about face; it is an

that

abandonment of prejudices which

But it means, oh the tftfoer hand?

necessities

same

J savings ? banks,

economy

$526, which leaves him a
purchasing power in terms of 1936
dollars of $363.
In 1936 he paid
$12 in taxes; in 1946 $25.
The
white collar worker, whose I in¬
come has remained at
$4,000, has
lost a considerable part: of his
buying power. On a, comparable
basis, his income tax has risen to
$108 and inflation has cost him
$1,145. A $10,000 income is worth
only $6,500 prewar, a $20,000 in¬

new

our

showed

services,

with

accounts

ance

evolutionary thing

though getting fewer and fewer.

budget

borrowing. In 1946, after hav¬

ing

our

his

deficit of $37, taken from savings

(Hence probably the

with

worker, TO years
annually$l,133, where¬

average

included,

too

this year, his earnings amount¬
ed to $2,230. In 1936, to maintain
a family of four
members, himself

re¬

effort to

address, "is

still abundant to the contrary,

enterprise.

from

cluded Mr. Bunting in his above

that it would not pay lip-serv¬

that

weeks ago: "The journalists who
describe 'labor' and 'the public' as

terests

aware

government will underwrite
his bank deposit and his
policy.

This

as,

Few americans
realize, in fact,
chip-on-the- capitalism is, if anything, further
that in the last years they have
shoulder mood and could have in advanced in the
high-wage in¬
gone
through a social process
itself far-reaching consequences. dustries than elsewhere. It can no
which has resulted in an extra¬
more
be bought
off by sugarordinary redistribution of wealth
coated devices. It is too late.
Joint Responsibility for Labor
and income.
The forces which
A third illusion might
Trouble
easily be
engendered
by 5 the possible brought forth this result were the
Can
labor
be
one-sidedly
war and, to a certain
extent, the
blamed for such a social behavior spreading of the idea so paternal¬
ly expressed recently by Judge strong influence of organized la¬
and frame of mind? By no means,
bor itself. The temporary bene¬
Speaking of the
and management's" mea culpa, mea Goldsborough.
ficiaries were the farmers,
the
maxima culpa" has been recently miners, his Court qualified their
case as a "Father
forgive them for mqre permanent ones labor* The
clearly proferred, to everybody
losers were the white collar work¬
they know not what they do.
concerned, by Earl Bunting, the
affair.
This, when labor expects ers, the wealthy and all those who
new President of N. A. M. in his
live op a fixed salary or income.
imperatively to be treated as an
inaugural speech at the WaldorfModern revolutions are bloodless.
equally important factor of pro¬ The executioner
Astoria. Alluding to current labor
is the Treasury
problems
Mr.
Bunting
stated: duction, as a rightful and indis¬ Department.
"Much of our present strife is a
pensable partner in it and, by no
No sensible thinker could gen¬
58-50 proposition, caused by stiffmeans, as a turbulent lot of school
necked
management
and
stiffuinely expect that the unpropernecked labor leaders.
Employers boys. Labor knows exactly what tied volatile masses would ever,
have been as dumb as it's possible it wants and so should
everybody
voluntarily,' refrain; from, using
to be, not frank with either their else. There is
just nothing to be
the considerable power they have
employees or the public." A real¬
forgiven especially by God.
^
istic writer, Felix Morley, says in
'gained to redistribute^ ^ehlth^S?
Under what conditions of re¬ that
"Human Events" of Dec. 11, 1946
they would acquiesce in the
"organized < labor
is
far
more
spective strength will the meet¬ inequalities of the capitalist dis¬ I
sinned against than sinning," The
ing recommended by Mr. Bunting tribution of income. The modifi-

siderably

and

CIO

well
his

fourth illusion.

concept and
already

ago, earned

than on the strength of a retreat¬
ing management on the defensive.
Incidentally,' to rely on the peren¬
nial virtue of moderation of labor
for the perpetuation of a
lasting
peace with capitalism might con¬
a

;7,

>';

The

warfare, fought
by labor with rather aggressive
warlike tactics, will
depend more
on the moderation of a
growingly
expanding and optimistic labor

stitute

their

Labor's Improved Status

amicable settlement of recent in¬
of class

stock¬

holders.
Folitical

production will jeopardize his
ownership of his house. He is also

*•

stances

legislation
by
in their "Dynamics of Industrial
capitalism by high wages, nor which free enterprise should be
can they be
appeased by a better comforted and strengthened for a
Democracy"
(Harper
Brothers,
1942), The authors add that the standard of
living.
The
labor time.)
has gone far to the
causes that manifest themselves in movement
this desire are "rooted deeply in left in
high and low standard Recent Redistribution of Wealth
the personal lives
of workers." countries
alike,
while
in
the
and Income

anonymous

absentee

J. the1 results

are

achieved:.

data

peace,
or
whatever
could be given to the

means

here

agement?

IN FLORIDA

witnessed
on page

a
423)

'
■

THE
422

of'these factors can assure the billiard and bowling
promising year in 1947. Ifowever, much de¬
pends on the ability of labor leadership to instill in the
minds of its members, the basic economic concepts which
have
made possible the industrial deyelppment of
America.
p.
Labor leadership must emphasize that there is na sub-

O^ens-Ford-'S; Rlaskqn molding compounds, , ifesin glues,
and; nesms for the paint, l^qner iud varpish; in ^ust^y
continpee tp feel, the effects of the many new uses fbr
piastics brought out by fabricators who are making plans
for forward expansion comparable to the big growth of
the plastics industry in the last decade.

All

industry a

honest effort—for

stitute for

full production;

that, unless

We have been through a
these past 14 years which
npon

We think

but IW cohiihced"that there
with the country that a fair anibunf

that the outlook for the electric tool; indus¬

Foreign business is

The company

used its reserve

production facilities in

GEORGE A.

the effort to

Chairman of the

unprecedented demand for
glass for the building industry and
an

all-time

American Countries.

BLACKMORE

Board, Westinghouse

did

Employment in the plants of the
company,: located in seven states, is
now at a
peak of 9,800 and annual
payroll is approximately $29,006^0.00

•'

than double what it was

typical pre-war years. Average hourly earned rates of
employes in Libbey-Owens-Ford factories have increased
more than, 65% aver 193$, it was; reported;.' . .*# *
Moderate price adjustments oh glass near the end
the year helped fa make up foi sonie Of the-beavy wage
increases put into effect during the way and in the, post¬
war period. Volume production also contributed tci substantiaf betterment in earnings during the: lattermonths?

'
'
,;7:\y:7
Production of plastics by the Blaskbn pfvision of
Libbey-Owens-Ford was up to peacetime level during
1946 largely due to improved techniques developed with¬

vof 1946.. v.^

in the

factories.

throughout the year
a building
program pf about $14,000,000 to increase
capacity for both glass and plastics output. Additional
glass manufacturing facilities completed may not be
effective until there is improvement in the supply of
The company

sdda ash,

has had under way

promised by the chemical

and aug¬
menting their equipment where nec¬
essary, and for that reason we expect a continuanoe of good business
m our lines, in 1947.
Braking systems of standard types '
will contribute to the railroad pro¬

John D. Biggers

industry for 1948L

gig! H

*7 |

h. G

automotive

changeover.
Glass for the
have

balding industry is |n greater demand
ever known.
Distributors have been un¬

glass. This means we wilt
have to continue our efforfS tq see that themaximum
supply of window glass goes into channels fpr veterans'
housing and for other necessary projects* ■ :7
Industrial demand for glass has continued to grow,
notably In the commercial refrigeration field where our
multiple-glazed Thermopane insulating window units
have been inAeavy demand.- £
'. .
"
I am. confident about long-range prospects in both
able to accumulate stocks of

Industry,•

ganized work stoppages are not en¬
countered during this year, their
plant output and our

year

five-year lapse.
The return of a
market

what

L. G. Blumenschine

freely competitive
a $22 billion

before,
startling

Bumper crops of ingredients, deliveries of machinery
and equipment long on order and the gra<fi^al easing of
y

packaging problems will this year, we hope» usher in a
new era of still higher standards of qua ity,r convenience

results with

ELBERT S.

was

Americans ate better during the war than ever
the food industry is on the threshold of further
advances*

corresponding benefits

employment.

President, National

^business in 1946 present manufdc^
turers,
wholesalers ^nd j?ct$uieys,
jalike with serious problems of dis¬
tribution, inventories and merchan¬
dising. Consumers everywhere will
rejoice as favorite nationally-known
brands, long missing./ from grocersshelves, return in Unlimited quanti¬
ties and "war babies" retire to the
oblivion from which; they came.
There is good reason for confidence
in the situation, despitq the difficul¬
ties ahead.
Although,;inutritiohaUy»

reflect

Robert J. Bowman

when

transportation

geared to it should
satisfactory financial

services that are

Foods, Inc.

months, this is the

has ^higher

generally,

production goals for 1947 than were
in 1946, and, if serious or¬

industry, with which LibbeyOwens-Ford is closely allied, the decision t° continue
many current models in 1947 will tend mere quickly to,
meet the backlog of demand for cars,
ft- should'en¬
courage peak production without any slack period for
the

1047, and an ex¬

attained

fhq .age-old laws of supply and de-r
mand begin t6 operate again after a

than

1
fs:

to a

Jan.

effective

pectation that production and busi¬
ness volume in the areas served by
the road will continue at or about
^the level of 1946. ,,•<

complete recovery from
domestic food picture. Al¬
shortages of fats, oils and sugar may continue

mate-i

business.

Marquette Railway Company
The present position of Pere Mar¬
quette Railway Company has been
brightened by the freight rate inerease
granted by the Interstate
Commerce Commission, to become

conditions in the
for

BOWMAN

ROBERT J.

use¬

necessary for

President, Pere

1947 should bring

The year

wartime

beginning to get to market in more satisfactory
volume.
Building labor supply has considerably im¬
proved through training programs and return 'of men
from service with the. Armed Forces.
A most important problem for industry in 1947 will be
the continued effort to balance supply and demand, and
through sound policies on costs and prices stimulate the
maximum business activity and employment. This means

step compared with the more serious problems of
adjustment of the many other factors which influence

and economically sound, and
harbors and waterways in the condition
their efficient use.
necessary

of the
will take>4'

system;

are
to maintain

BLUMENSCHINE

President, The Best

are

easy

cipal

Federal

Congress will recognize

functioning of our industrial

proper

is good. Automotive production
greater than it was in the year just closing;

greater productive effort in most lines of industry and
requires the cooperation of management and lahor te
maintain steady operations.
Reconversion of plant facilities seems- fo have been ah

self-evident that we are con¬
Government, which is the prin¬
customer of the industry, will provide the funds
conditions are so

fident that the

and bur abil- 1

tBeeC

The outlook for 1947

The carriers program

peak. Supplies of

tb&t legislative action is imperative to
some
threats to our economy from these sources $nd
prompt action to correct existing impediments

started in 1941.

rials

increasing

hoped that the new

It is to be

plastics manufacturing facilities will
be available early in 1947 at the new Toledo, plant being
developed at the site where the research laboratory was

Building has not yet reached its

fulness.

Some of the new

should be

development of the country.

These

that will
dif¬
all

though

nomic

operation of the ves¬
use them.
Improvement of harbors and
should keep -pace with and further the eco¬

ity to furnish the materials of our manufacture
be needed are contingent, of cqur^C, upon the labor
ficulties, shortage of materials from which we are
suffering due to strikes and lack of production, and the %
disturbing effects of the portal-to-portal pay situation,

resourcefulness the Libbey-Owens-

manufacturing forces minimized the
effects of the soda ash shortage on factory

find

expected< to
;

Ford technical and

output.

waterways

and many new devices which
developed to meet special
conditions of modern operation are

George A. Blackmore

sufficient to take care

preventing economical

have

basic raw material in the U
States ever since the end of the war iiTfesjtrictirig.j&smy
industries, including glass,

unfavorable

shoal, thus
sels which

gram

Critical shortage of this

By extraordinary

is not

has
for
of necessary

provides nothing for new projects. For
industry has very little work under con¬
tract and very little in prospect for the immediate future.
It is wasteful to allow uncontrolled rivers to bring
destruction and desolation in the wake of high water
floods; or to ailow barbors an<f navigable watej^bys

they are
the basis of rejuvenating

measure which we
ill-radvised. A portion of these funds
released but the amount so released

this reason the

most

Bowers

maintenance and

war—during which they
excellent job—we find
generally going ahead on

years

'waterways

for business during 1947, we
can say that with the excellent work that the railroads
are doing toward rehabilitation of their properties, bringv-,;."7v,4
ing up their motive power and cars
to their previous level, which was
not possible because of the many

record

been

since

Air Brake Co.

Emerson S.

economy

appropriated

large part of the money

Concerning the outlook

J volume of polished plate glass and
window glass for the construction
market.
Libbey?Qwens-Fo.ra fur¬
nished an adequate supply of safety
glass for the requirements of i its
automotive customers in the year

projects,

believe was,

glass

meet the

manufactured

particularly good at the present
continue throughout the

especially in the Latin

year,

expended on flood

waterway

believe this will

time and we

000.000 in 1941,

or more

control and
which had al¬
ready been approved by the Corps
of Engineers, U. S. Army, and au¬
thorized by Congress.
The appro¬
priation bill was signed by the Presi¬
dent without comment on May 2. On
Aug. 2, the President issued an
Executive Order which impounded a

to be

capacity during the year.
"

appropri^ibhs^

Aprii, Congress ihado

facilities to maximum

operate our production

be able to

s. bowers

developments.

other

behind

considerable discount, due tb a possible temporary re¬
cession during part of 1947, we believe that we will

pbhey-Qwens-Ford Glass Company
.
Total sales of Libbey-Owens-Ford Glass Company for
1946, although influenced by moderate price increases
; only ih the closing months, exceeded $60,000,06(1 as iSragK
pared with the pre-war peak of $54,-

| just closed.

It is axiomatic that
everyone is going to
be interested in labor saving devices^ ai^ thP dbsigh ahd
manufacture of these articles is bur business. . r
-We,,, iip comihon with our competitors, have very large •
back orders, and eyen though they, may bp subject to

President,

15(47

At&nthv Gulf 4^ Pacific Co. .
is vital to the continuing
growth and development of the nation. For this reason
w*
evidence ih tkp future of bug;
thp present situation disturbs u^'
liurmg the war there was, practically
no; new flood control of waterway
improvement work done except that,
urgently needed in the war effort.
As a consequence, tbis type of work

will not cure.

i/iff- pi '

develppiment

Waterway

try for the year 1947 is very bright;
the higher labor rates go the more

is- nptjfe-

Black 8$ Decker Mfg. Cp,

President, The

period of controlled economy.
has brought some serious ills

bur peoplei

ing wrong

•:•

Sscretary & Treasurer,

BMCK

S. QIINCAN

it§ merchandise at prices people
can afford to pay, there will be no markets and without
markets there will he no. jobs!
This is a fundamental
economic concept—one that is vital to both labor and
management.
,
,
»

industry can produce

;

''u!1-

package, but of one fact you may. be certain If
a
quality product,^ tf wtR bp b^ter
pyer* b€£aus§ of
thp addbd years bf research arid quality coutroi which
have gone into its majking,

glass, and plastics. Architects continue to emphasize the
growing trend tP dayhght engineering in a|l forms of
building and that tneaps a continuing" increased demand
foy
and plate glass,/ The market for Libbey-

420X
nwnity;
Billiard rooms and - bawling alleys may be
operated either by the eonmiunity or by indwiddalaf. , ;

the Turn of tlie Year
it's

Finance Spedks After

(Continued frpm page

;

mpsgfmn

Business and

■

■■

Pihf s$arj^ January 23*

■

BRIGHAM

Life Insurance Company

The life insurance business enjoyed an active and
prosperous year in 1948, and there is no visibly reason
for anticipating any pronounced change m 1947. It is
possibly true that sates of life m.
surance have benefited during the
postwar period from the fact that
the income of the consuming public
has be^if high while many major
items o| family expenditure have
not been; available. On this ground '
thefq mivT fed reason to expect that
recent extrabrdbm^ ^
9^ mcrease cannot be maintained*
How¬
ever; the trend of new business and
Insurance

upward
short reces-

ih force has been

Wii'h only occasional

There may bp ;
fact that life
- insurance sales- after World War I "
iremainei; far; above what they had
.he^ fn the prewar period. Another
sione fOF inany; years.
precedent also, ih

•

factor favorable

the

$righaig;

continue^

for some high level ;p£
growth of i^urahce ivs, the. prospective years to come,
income

and inheritance taxation

w^jch gfyes life insurance a tax advantage pver some
Packaged food industry. Already other forms: of; investment. \ ;
•"
;
the advance- guard ol thousands of war-bo^n new. and
While hiie sale of life insurance has been no
improved products is appearing on *r>A
retailors'cfirv, +ntQi ( / a°cehuge other channels; has* given nse;to concern abo^ut
shelve?.
and volqme of
Othera are becoming available daily and the sum total -•
difficu^y 0f finding suitable investments providing a
her ajx appfociable rise in the natiop'^ nutritional
satkfactqrv.return/-''Npf only-/gje pf^njuni receij^s high,'

^ nqt^tmh ta th^

problem,
savings flqwing through life msufr-

Just one word

product is not
ba

^isfipg ; investments

but ,rprincipal

levels.
,

of caution

, A„u
should Un added.
be nun,.

necessarilyia; better 'pne.-! The - f^
still merchandised in a familiar

long-time favorite

margiri,;

A
amortization by a wide
A new.. have exceeded requiredamounts of life; insurance funde
During' the war, large

Treasury

obliga1ions, ;but'With'fhe Federal

(Continued on-page^424X:

T3WCO^MERClAt&^PINANClAfcOlRdNlCiJE
than

Labor, Capital and

their

the

yield of
1932 (before

since

money

taxes):
Interest

Interest

Yield of earned by

paid by

30 AAA Insurance

Cos.

not questioned or even seriously
challenged, and earnings were" re¬
stricted only by temporary war¬
time regulations and the E. P. T.
They relate also to a" period where

and restrictions have disappeared less distant
but already
fb€;the^timec beings Wei csuv; thus able
future.; - / •
admit, with a fair degree of &c;; The
question
arises,
curateness, that
above average
figures concern
rather Javov- juncture, whether and

booming business and inflationary

stock- market#-

able

These

scares

decreasing trend

downward

period for earnings,

the

trends boosted many earnings up-

other

hand,

almost

everybody

meeting of labor and man¬
agement, industrial peace has to
be bought at the
expense of cor¬

discern-

porate earnings rather than prices-

■

' at

this

how

revision

price-earnings
ranted?

that in the planned middle of the
road

ratios

far

too

to see

above

is.

goods which; nobody wants to

see

If the assumption is
right

tion

low

possible, an an-*

has to be given to this ques¬

swer

war¬

high and everybody longs

by the stockmarket itself.

Banks

4.59%

5.08%

4.32%

1940—

2.84%

4.11%

2.26%

1946-

the

Savings

bonds
1932_

agrees that we are at a peak of our.
postwar prosperity and all baro¬
metric business indexes will
show

timate fate of free enterprise was

(Continued from page 421)
decrease

upward direction in years jgide< Pirrally, monetary apprehen¬
Moreover,; these figures sions,; in the Jateir part of said pea period where
the ul¬ nod, pushed many investors - into

relate to

The Stock Market
tinuous

come.

2.48%

3.65%

1.80%

„

Finally, the cyclical nature of

out economy rls responsible for
the corrosion experienced by cap¬
ital
through
losses
sustained
from

purchase of securities.

•effect

-vincingly

these

con-

been

Mr. Robert

published

The

has

causes

demonstrated by
in a study
1937.
"The record

A. Lovett

shows," Mr. Lovett wrote, "that if
an
investor had
purchased 100
shares of each of the 20 most pop¬
ular

dividend-paying

stocks

Wealth is goods. It is food, shelter,

clothing
hairpins and automobiles, mousetraps
and refrigerators, railroad cars and
pens

Dec.

31,
1901- and held
them
through 1936," adding, "in the

meantime, all the melon's in the
form of stock dividends and all the

plums in the form of stock splitand had exercised all the val¬
uable rights to subscribe to ad¬
ditional stock, the aggregate mar¬

that write under water

ups

And the

with

the

of
cost

39%,
of

compared
original in¬

In plain English the
investor paid $294,911.99
for things worth
$180,072.06 on
Dec. 31, 1936." We can add to Mr.
JLovett's demonstration that, with¬
out considering the decrease in
1933 of the gold contents of the
dollar,
the loss in purchasing
power,
since 1936, would now
place on the original investment
as expressed in 1936 vintage dol¬
lars, a "real" value of only about
$108,000. or a decrease of approx¬
imately 63% in terms of purchas¬
ing power. With such a record;
the word "security" is undoubt¬
edly a misnomer, and no evidence
vestment.

the

belief

that

such

one

Without work, money has

as a

provides

market

undergo

this

goods. Men-receive it for their

thrifty

part of

save

13.3

1944

which steps up

which

means

■

of stored-up work is

our

I'M

use

economy.

But it has to

■

won¬

start

'../■••n;
II! Hill I

Market Place for the

V III

period,

of 1940-1946 as a basis of
«POTarisbh; purtrtg; these

aveirage ratio; w&f 15.2
The present
the

D. J.

l^ustrials, is: historically, by all
istaiidards, a ;high^bhe and-general
earningsseem
.

have

downward

ready market, at openly disclosed prices,

for the securities of millions1 of

ij(|
"erratic"

Thrifty

Exchange is the nation's

principal market place for investors. It main¬

13.5

the

for;r a

.■

tains

^rears of 1929-1932 and 1937, years
of unbalance, we could take the

;more .{chgncesr

factories,

investment It is one of the

The Neyr York Stock

14.3

Current —.Approx. 14.4

High' and■12.fr; low.
level, of about !75

...

13.3

1946 ——Approx, 19

aside

new

10.3

18.5

——————

•withwfc

12.8

15.1

—

use

wealth.

wealth for the nation.

ders of

9.2

15.5

--w—

new

lump together

industries, build

This productive

10.1

11.5

new

known

1040

have learned how to

| • their. savings—their stored-up work—to

19.2

17.1

the facilities for work

14.5

50.7

—

America,

the production of goods

1932 ————.year of deficit

money

exchanging

buy better tools. By so doing, they increase

19.1

——

•current

stored-up work to create

start

Low

27.2

—

^years the

producing,

means

Millions of thrifty people

the Dow-

1937—-——

past typical years, the

—-

Leaving

unchanged. You

their money-— and thus store
up part of d
their work for future use.

necessary

High

1945

real wealth

corporate

price-earnings ratios

1943

are

convenient

labor of others. The

-Jones averages were as follows:

1931

labor, and trade it for things made by the

•changes?
Are earnings or are
prices of goods and services the
designated casualties?

1930

work for

If we be¬
earnings, in
a. deflationary
climate, will be
successfully assaulted by power¬
fully - organized
labor
forces,
Should not their appraisal by the

1929

num¬

American pocket,

sin^e shirtr or steak. The

But, when people

.appraised marketwise?

some

meaning.

can't eat money, or wear it.

How should securities, particles
of American free enterprise, be

suddenly double the

of the nation would be

Conclusions About Stock Prices

•

could

would not increase production
by so much

sstock

ber of dollars in every

corrosion of capitalist values will

that

some¬

brings out the coal.

Even if

foe halted in the early ftuure.

lieve

wealth. A

the trees, a mine until

someone cuts

average

warrants

can we create

farm has no^value until
somebody grows
and harveststhe crop; nor does a forest until

his

thing that makes goods is work.

Only with work

ket value of his total holdings on

Dec. 31,1936, would-have shown a

shrinkage

entrust their

them.it says this; Base

mm
mm

cisions
V

mMmmm®

Americans who

surplus funds to industry.

facts, not

your

on rumors.

investment de¬
Facts

are your

best protection against
unnecessary risk.

III

COMMERCIAL A FINANCIAL CHRONICLE

THE

424

(Continued from page 422)
Budget approaching balance, other outlets must be util¬
ized. The year 1946 was a record mortgage year and in

not always be the case.

E. J. BUSH

capital

substantial revival of new

witnessed

flotations by industry. The outlook for construction
promises a large demand for mortgage funds in 1947.
In the industrial field the effect of high wages and
technical advances will eccelerate depreciation and ob¬
solescence and thus stimulate the modernization of plant
and equipment, which in turn should maintain the new
capital markets. A number of the larger corporations
in the country have recently sought new capital, a fact
which suggests that a great deal of rebuilding and mod¬
ernization of our industrial plants will be required as a
corollary to the present high level of economic activity.
While life insurance funds in limited amounts are going
directly into real estate ownership, it is mainly to the
mortgage and new capital markets that the
ance business must look, and is now looking
meet its investment

Chairman

consumer

of the Board, The

Only the failure
«

" «'

prevent prosperity.
I see reasons for optimism;

can

I see
reasons for pessimism. I believe that
optimism, combined with courage to:i
see
that such a position shall be
justfied, is the proper attitude.
Despite postwar reverses in some
phases of industrial efforts toward
peace-time production, the electrical
industry generally has reached new
highs and, in contrast to general
trends, has been able to reduce costs
while meeting increased demands.
The Detroit Edison Company is no
Prentiss M. Brown
exception. In fact, it is the outstanding examples It served the great
'
■
. •
.
automobile plants, the world's arsenal of democracy, in
war
time. The pessimists expected a sudden postwar
collapse to begin in the Detroit area. ^ |
The contrary is true. On three separate- days in the
last two months Detroit Edison has set new all-time
highs in its output of electricity.
/?/■■
The Detroit Edison Company now has 30 more indus¬
trial customers than it had when the war began, and
industrial consumption in 1946 was only slightly less
than in the peak war year.
Five I

thousand, five hundred
customers were added in 1946.
V-J

Since

Day

commercial

(5,500)

residence customers.

Edison Company never

The Detroit

kilowatt turbine

failed to meet a

within a
of a new 75,000

durihg the war and now,

demand^for power

month, i^"willeoniplef^he^

ordered before the war. We see reason
this addition to our power

to believe that

output may

inadequate to meet future demands—reason
enough that we have placed an order for a 100,000

prove

unit to be completed by

kilowatt generating

1949.

able to put into
effect a voluntary reduction in industrial rates which
will save industry $3,000,000 in 1947. This matches a
1946 reduction which saved residence and commercial
customers more than $5,000,000 in the past year.
On January

1, Detroit Edison was

LOWELL R. BURCH
President, The New York Air Brake

duced
1946

potential business is promising.
will be largely depend¬
materials, is the limiting factor^ While we suf¬
fered no prolonged over-all shut¬
down at our plant last year, the mal¬
adjustments caused by scarcity^
were' costly

sML '

ri''
o

%■

There

^ diversity
clined

the political*climate has improved, and I base

merely

but rather

the fact that a
on

the.

Change.

1947, as

party is.in the

I have been asked over a long

period of years, at this

views upon business
during the following 12 months. I believe

for an expression of my

season,

conditions

the most diffi¬
cult year, about which to make an
intelligent forecast. If the labor un¬
rest^ and recurrent strikes' are to
continue, there cannot be great pros- '
perity in the lines of business af¬

that 1947 is probably

fected

demonstrated when early in 1946 the increase

steel wages and in steel prices caused a breakthrough
hold the line" policy. This action formed a pat¬

the

common

were

and can

they will realize that the wage

steel

went

for their share of the increased cost of prodpg^on,
and that while wage boosts may give temporary satis¬
faction to certain labor leaders, it will be of littld dr no
advantage, when the cost of maintaining a home and
supporting a family is reckoned with.
^
I am enough of an optimist to believe that the £enpral
business conditions in the United States will be better in

just as there are selfish and
and it is essential that if 1947 is
to be a prosperous year for the country as a whole, there
must be harmony between business and labor.

arrogant business leaders,
arrogant labor leaders,

,,v<

TOM CAMPBELL

■

+< s *.*• * v *

News-lVfarket Editor, "faie Iron Age"
Whether

the full significance of it,
management have entered a period
returns is definitely operat¬
ing against both. The wage increase
which the steel union will wring from
steel firms this year and the price
raises necessary to partially offset the
resultant
increase
in steelmaking
costs may set in motion a chain of
events which will eventually cost
both groups far more than they are
expecting in lost wages and lost
production.

not they realize

steel labor and steel

Because users

of steel have never

this not

would

majority

mands

get enough material to
production schedule * that
near satisfy de¬
made upon them, there has

been

disposition to pay any price,

been able to

set

anywhere

submit to any conditions or
Tom Campbell

some
:

waye

of prices in

If-conditions in

1947

the

1946, the

pattern of

before it does show its tardy
head, both labor and business will take a drubbing at the
hands of those who make or break prosperity for both—
years may never come, or

the public.
Already many would-be consumers have
given up buying that treasured dream—either because
they have found they can now get along without it or
because when they pay their bills they have little or
nothing left over.

Another year with from 14 to 16 million tons

of steel

lost because of steel and coal strikes would so upset

the

system of distribution in the United States that a com¬

plete breakdown in the economy of the country might
result. Most steel leaders know this and so do
labor leaders.,

intelligent

Both, however, are so driven by the im¬
of their respective groups that it is

demands

mediate

hardly likely that either will be able to do anything in
1947

obvious—the

except the

union obtaining higher

and business heads raising prices to make up

increases which they will give only to keep

wheels of

for
the

production going.

All efforts of economists and management to

the fact that real wages are the ones

portray

which pay the bills

that
static con¬
successful. The

in 1946. No attempt to show

even a loss in

real wages was

towards his company

economists in general is as strong as it ever

The workmen feel that to get an

increase in actual

is better than taking a chance

that if they don't

65,900,000
in 1945.
Barring strikes and other slowdowns, the industry in
1947 will probably turn out close to 80 million tons of
steel ingots.
However, should the inventory situation
iand/fh^ dvei$ricing in general economyrhave the effects

to take

hing / other
than what was
in order to keep plants in

wanted

operation and skilled workmen on the

production in 1946 amounted to about

of ingots

compared with 80 million tons

ingot production in

which |qpie quarters loGk for;-steel
1947 may not range more than 70 to

75 million* tons of

steel ingots.

production in 1946 is

Total pig iron

estimated at 45,-

with 54,919,000 tons in 1945. Blast
1946 were shut down a number of

450,000 tons, compared
furnaces throughout
times because of

strike conditions.

amounted to 46,868,in 1945. The pat¬
tern of distribution of finished steel in 1946 was almost
identical with the prewar year of 1939. The automotive
industry in 1946 obtained almost 13% of total finished
steel production, but a substantial part of this still re¬
mains in manufacturers' plants as unbalanced inventories.
Finished steel

000 tons

production in 1946

compared with 56,946,000 tons

distribu¬

There seems every reason to believe that the
tion of finished steel in 1947 will follow the same per¬
centage figures as in

1939 arid 1946. A rough presenta¬
is as follows: Agricul¬

percentage figures

tion of these

automotive; 14%; construction ahd main*
containers, 9%; machinery and tools, 6%;
oil, gas and mining, 4%; pressing, forming and stamping^
6.15%; railroads, 9%; exports, 7.5%; miscellaneous,

ture, 85%;

tenance, 16%;

when the law of diminishing

will

again due to higher material and equipment

Steel

pay

off

long awaited and long debated period of four to five lush

tons

industry,

increased this set

get it prices will not go up.

they

steel

.prices.

was.

but as you have
particularly for my views
concerning the field in which the
Irving
Bush Terminal Company operates, I
T^BushhiV!
will pointuout that we, have certain
mes,.
ur income
great advantages. A large part of
from rentals which are on a cash basis/' That1'which
comes
from warehousing and our railroad operations
is secured by the merchandise stored or handled. In
addition, we are not burdened by inventories. I feel,
therefore, that I can be reasonably optimistic about the
conditions during 1947, in our particular field.
As to
business generally, in other fields of effort, labor I am
certain must ultimately recognize that its workers must

.•

well organized
The same general

other fields with the result that the cost of making steel

money

the pay envelope, but what
those dollars will buy. This is true

V,.

made

are

applied to steel management. When the price

was

and towards

receive is not numbered by the dol¬

all

gains

suspicion of the average workman

lars in

asked

the

demand similar concessions.

condition

ditions

of the
be that

it must

and

No single group can obtain wage

avantages for long when other groups

of the people

sense

idustries

shortlived.

failed of their purpose

conditions,, I have,
great confidence Jn the

States

United

other

for

tern

labor

higher wages followed by higher prices mean

by such

however,

and

decidedly on the optimistic -side forregards at least the heavy industries.
am

well

was

wage

underiyingfactors which caused the
,

Altogether I

new

have almost the same relationship to other
steel prices do to items made from steel. This

President, Bush Terminal Company

those on
the pessimistic side prophesy. Some
levelling off of prices is already oc-.
curring and I expect this will also
apply to labor demands. Certainly

Burch

important

Steel wages
wages as

wages

of opinion, but I am in¬
believe that business

universal

in pricing items into which steel goes. It has always
been this way and most firms utilizing steel use a for¬
mula to establish their prices the base of which is the
net price paid for steel.

IRVING T. BUSH

be' considerably- better than

\
L.

is also the very

Prices of basic materials and finished
units have been advancing sharply, and while the mar¬
ket up to the present time has shown little resistance
to higher prices, it is hardly reasonable to assume that
this situation can continue indefinitely.
Labor is clamoring for higher wages, management is
endeavoring to protect its profit position, and it is to be
hoped that some method can be devised where both of
these objectives can be attained through increased effi¬
ciency and higher production per labor dollar instead of
a pyramiding of labor cost increases with nominal pro¬
duction efficiency which eventually must drive prices
upward to the point of buyer resistance and eventual
collapse of the market.
prices.

factor of

general, there is, of course, a wide

iron, and upon a

and

avoided.

Bush

■.

continu¬
ous
supply of materials which will
be possible only if production inter¬
ruptions due to labor difficulties are
steel

prevented a smooth operation. It is
my personal belief that the outlook
:
in this respect is now more favorable
than for sometime past, and I believe
that profit margins will accordingly
improve.
'
'
- y,i.
>
As to the outlook for business in

vf
.

greater
depend

will

ability

materials

volume than -in
upon the avail¬
basic materials such as

1947, than they have been in 1946, but there
upset this view. There are selfigh and

Ability to produce, which in turn
ent on

supplied for replacement pur¬
poses as well as some further expan¬
sion.
This applies to
both the
domestic and the foreign markets,
whether these trucks can be pro¬
be

factors which can

Company

Our 1947 oulook for

■

purchasers rather than to replace
equipment. These dealers
feel there is still a large demand to

of 17,600

have had an increase

from the

worn-out

life insur¬
hopefully,

demand for
of record

1^47

truck production for

The outlook for

Detroit Edison Company

unquestioned and enduring
goods, 1947 should be a year

Company

standpoint of demand looks very favorable. Many of
our dealers report that the bulk of the new trucks which
j''V
j
they delivered during 1946 were
used to expand the activities of the

PRENTISS M. BROWN

production and increasing prosperity.
of management, workers and government to cooperate in grasping this
opportunity for the benefit of all,

President, Diamond T Motor Car

Requirements.

Because of the

The cost of steel is

gage

addition

Tear

Speaks Alter the Turn oi the

Business and Finance

payroll. This will

24.5%.

;

Three or four

good months

of steel operations at

increase in worker produc¬
tivity either by better management or by greater worker
output would clean up 'the excess demand which has
been hanging over the steel market since the war ended.
By that time it would be seen whether the industry can
to 90% of

capacity with some

continuously and whether the con¬
has been on paper for some time
actually exists in. fact or in the minds of the market
experts. This much needed test cannot be made, how¬
ever, if the steel industry in particular must go through,

operate at high rates
sumer

demand which

d-strike-wage-increase-price-incr6ase
For that reason alone it must yet be
"prosperity, is just around the corner.'

"wage-dem an

cycle every year.

proved that

(Continued on page

426)'

:.ft >.V

•

v,v.

*®folume l65 ,Number 4562
425

I theless, the Government does not
to have lost until now the
support of the electorate that
brought it into office in July 1945.
appear

(Continued from
this policy,: industrial
general suffers
The electric

ir!Lnm?n+i

time requirements

nower

suoolv

SSl S

the

far

moderate.

For

troubles

making good
circumstances
caused

by the change-over has been

difficulties

which

over

Government has

all

largely due to

are

the

control. Food

international. The

The

1946,

wnrn

recjuced

level

below

those

the fact that the nation is in¬

adequately fed and is tired after
the exertions of six years of war.1
countries such as, for instance,
the
situation
Switzerland. The budgetary situa- Should, however,
continue to deteriorate, the devel¬
prevailing in

rinmJiiP pinQnmprZ
domestic consumers

some hard currency

December

increase'of 4.8%

fixed by the Government

are

amounted

compared

with

of freight traffic
December,; 1945. The amount of
Class I railroads in traffic handled by the Class I rail¬
measured in ton-miles of roads in December this

year was

revenue

freight,
was
approxi¬ 69% greater than the the volume
13.3% .under 1945 and carried in
December, 1939.'
about 20% less than in 1944, ac¬
The
following table summar¬
cording
preliminary

mately

to a

estimate izes
revenue ton-mile statistics for
reports received from the 1946 and
1945 (000 omitted):
railroads by the . Association of
on

American Railroads. Freight traf¬
fic; iri 1946 totaled approximately
590,500,000,000
ton-miles
com¬
pared with 681.000.757,000 ton-

Progress in the housing "drive" ti0" iS
opment of a wave of discontent of miles in 1945. Compared with two
—•if the supreme
^
_
slow-motion picEven allowing for all this, the
ture of
importance
must
be years ago, the decrease was 147,building and repairing economic position and outlook is political
houses can be called so—remains anything; but reassuring. Neve 000,000,000 ton-miles.
most
unsatisfactory. The targets

^ing

traffic

aboqt 48,500,000,00.0, ton-miles,, an

volume

handled

practical
purposes the country is still fully inadequacy of the housing drive
employed. Money rates have been and of the coal output is ascribed based

rFThi imt
25 during the war. Curtailment
out rinrlS jfhlIS
S S

Sike

This is because it is realized that

peace-

Progress.! Unemployment

too

ripr tn

irU^ hL

397)

page

output in conversion of industries to

Freight Traffic Handled
Dropped 13.3%' Last Year

.1'
-vV '•"% V,
1945 v: Change
584,608,521 —16.1
,

('rj

1946

1st

mos.

490,444,064

Mo. of Nov.

*51,500,000

49,762,306

3.5

Mo. of Dec.

t48,500,000

46,295,117

4.8

Total

590,500,000 t681,000,757 —13.3

"Revised

mate.
made

estimate.

JTotal
in

includes

monthly

tPreliminary esti¬
adjustments ' not

figures.

ex¬

tremely modest, but

even so actu¬
al results remain far
behind them.
Now that the

fighting forces

are

almost completely demobilized the
housing shortage has become al¬
most

intolerable.

The food situation is
going from
bad to worse. Bread

rationing,

which
be

was

originally expected

purely temporary device, has
evidently come to stay, and the
possibility of a cut in the ration
cannot be ruled out. Other
food
rations have been curtailed. There

growing resentment in

quarters

many
fact

on raccount
of the
that the British consumer
is

short

rations for

the

kept

sake

feeding Germans.
1

There is very little evidence of
any substantial increase in the in¬

dustrial output of essential
goods*
Furniture is 1 still

virtually,

obtainable.Curtains,

un-

carpets

can

only be bought at fantastic prices,
far beyond the means of
nine
households out of ten. The clothes
ration

has

been

increased

slightly, and is still
ficient to enable

very

far from suf¬

and

men

women

replace their prewar clothing
which is wearing out.
Purchasing
power is still
increasing at a more
rapid

than

pace

goods

the

available.

Government

volume

This

year

intends

the

make

large

payments on accounts of
compensation
for
war
damage.
These payments will further in¬
the demand for
goods, and
than absorb any in¬
crease
of the
supply v that
crease

will

may

reasonably be expected on the
basis of
prevailing conditions.

lost of

Pressure in favor of thfetiniveris

•

Unions

the
are

increase.

The

H1RE IS WHAT WILL HAPPEN TO

WORKING PEOPIE.THIS YEAR !t

Trade

(as based

unable to enforce dis¬

cipline among their members, and
"unofficial" strikes are an
every¬

day

occurrence.

They

are

than
An

are

largely under Communist

Equitable Group Plan will provide

doctor bills.

the

Treasury's I

exports to "hard currency"tries remains

small

coun¬

room,

;

ances

claims

pile

sterling

against' "soft

countries wha

big

surgical

for. British, goods either in hard
currencies or in< goods. •

......
.

are

An Equitable;
Group' P.Ian will provide:
fQmity jecufity for every employeerf-y-j

1 out of 3 wiK stilf be

I';

most economical and efficient method

vised to

assure

their

yet de*
employees financial pro¬

tection when it is needed most;

.AeEquitable Group Annuity Plan orfen-r '
1

retirement.■>

**>

J-

;

♦

.'(V?

;

provcdto beoneof AeWst

im^ftantiiQciaL
|?||j economic.undertakings of all time..,

r ~

Group Insurance, they have discovered,

represent^
policy

a most

valuable labor relations

well. For

secure workers, freed: of

financial worries and fears, are far better
•

v
:

•'

ifliffrmsiirance manaeemeht; businessman:-

working when

iSlon Trust 'wllli prbyide-for; tomfortaWe

also favor-

problems. Many
daring experiment at
the time. Briefly, The
Equitable maintained
that many more
working people could be
protected; against the hazards they feared
mokt^and protected more simply, more convenieiitly'and at the lowest possible net cost-^
a

•

It is true; there

common

currency"

are unable to pay

1911, The Equitable proposed a

insurance

country are safeguarding their employees through Equitable Group policies.To
them, Group Insurance is far more than the

■-

Today, more than 3500 employers through¬
out the

well....

;

■v:

expenses.

^...

«£«A

bal-

frozen

in old age.

jeopardize not

future but the future of
as

paydqqtpr and hospital bills.

defray the cost of an operation.... to^,.
provide comfor^ble retirement for employees
• »#

*3out of 4 workers who die this your
t-.a-u
will Kavelittleornoindividuol life

for vital imports but in order to.

cover

board and .other hospital, ?osb.

Ah Equitable GroypPIan will defray,

countries. Thus, the home market

holdings

;

•

repay

1 out of 16 will require dit operation

fraction nof I

our own

people considered it

hospital

An Equitable. Group Plan.,will

the

haddied ...to

queries have always
worry and fear. For

hazards which

dependents

Back in

care

pay

1 out of 12 will go to n

dollar resources.. The volume^ of
|

;

Plqi\ will

solution to these

required doctor's

The -export drive has failed to

check the "drain

only

ask ourselves these
ques-

source

are

our

Equitable Group

here

week...

3 out of 5 will

in¬

fluence.
r.

for American industry)

tions. In fact, these

been

for weekly benefit payments.

officials, and

are

on averages

1 out of 7 will be disabled for

organ¬

ized by "shop stewards" who
rivals to trade union

•

Rekto^'conwell-

' i

•;
•

;

In the building trade an increasing flow of materials
is feeing anticipated, which should result in increasing:
volume of construction, with satisfactory profits,
•building costs generally rose excessively; the -elapsed .
In the field of labor, while employment is still at a
time between starting and finishing a house which is
high level, there remain many unfilled jobs in industry,
normally about 3. to 4 months widened to 7 to 10 months. . and our area has been particularly fortunate in the
man-hour and correspondingly. contributing to increasing construction costs; labor hoarding developed;
black markets appeared xr\ scarce. building materials;

per

(Continued from page 424)
G. H. CASSELBERRY
President, The Third National Bank & Trust Co.

Any statement regarding the outlook forbusiriess for
; 1947 hinges on a lot of IFS, but I am not one of those
"With a pessimistic view.
,.
•
'
J. do not believe that the labor leaders will hitch busi¬
ness to the whipping post, and cohsequently the country
should enjoy; a very good year, in which case this busi¬
ness should also enjoy a good yedr.
I feel positive that
/Dayton, Ohio, will get its full share."
;
^
t
;

demand by

Much better value for the home builder's dollar is in

building costs

"•

"1947 might well register

become real

record, with twice as many'
hpmes completed as in 1946. indi¬
cations are, that a possible cause for
■delays in 1947 might come from a

come

black

market

prices,

better

•

governmental controls of industry, many of which have
been lifted.

now

As many of the reasons

for excessive

costs have disappeared, the trend ofbuilding costs
is downward and is or will be in the Spring, at a much
lower level from which point it is possible that it may
start to rise.

£§0.
j
; // '•,!
. .
i
prospect of lower building costs in 1947 might
vanish and, in fact, costs might rise sharply, if a wave of
The

strikes

levels disorganize bur
national industrial pattern.
f
i//
|/ The light construction industry boomed in 1946, ali;,though in the most lop-sided fashion in its history. In
May, 1946, a larger dollar volume of contracts for total
construction was awarded than in any month on record
except in 1942 when the building of war plants and
military projects raised construction to an all-time high.
But this dollar volume represented a low physical vol¬
ume of building because of the excessive costs.
/The apparent construction "boom" in 1946, was in
reality .a "dollar" boom at inflated costs, and it is there¬

sharply increased

wage
.

fore

not

and

surprising that the National Housing Agency

only able to report 110.000 permanent new dwelling
units both started and finished in the first eight months
of the year/ ?

was

excellent

should
income

favorable
operations.

be very
from it

large* the additional
cannot be expected

overhead.
will do well to
anticipate a less uniform credit ex¬
perience with our customers than
has been the case during the war
We,

bankers,

years. The economic period into which we
will take many war-born executives from

Chandler

entering

are

administra¬
tive chairs, and quality of credit, especially as it touches
those industries and businesses which will catch up in
1947 with the backlogged customer demand, will prove
to be more pertinent than it has for a long time. It is felt*,
however, that loss totals will be moderate, unless the
economic readjustment during the year is much greater

will play a most important role. During
companies i including Johns-Manville an¬

search programs

1946, many
nounced plans

insure

should

to offset the increased

markets, industrial re¬

this 1947 competition for

Earnings for the new year cannot,/
however, be expected to be as high
as
they have been in 1946. Costs, 1
with the possible exception of in¬
come taxes, will continue to rise, and while there is quite likely to be an
increase in loan demand, unless this

spend money and expand
opportunity to improve their
business position. Every company, both' old and new,
will be engaged in a vigorous competition, for markets;
and particularly must the older companies build and
expand not only to meet the competition from the warstrengthened newer companies but to maintain the prog¬
ress which they demonstrated'before the War in produc¬
ing more and better goods for the public for less money.
,In

this

commercial 1 b a n k i n g

fields.
an

expect

can

apuuucu uuuu8

WC1A

nearly
into play.

have

now

commercial banks

that

believed

$*e year» hut, as a whole, it will be
high in comparison to past averages,

Those industries which can

or¬

satisfactory experience during the year 1947. Business
activity, which is the basis of our prosperity or lack
thereof, may well be spotted during

During the war many firms which were not in impor¬
industry-positions built themselves up through gov¬
ernment emergency contracts to the point where . they
are in postwar competition with old-line companies in,
many

any

ganized distribution of materials and
L. M. Cassidy
increased efficiency of wdrkers, despite wage increases and higher costs of some materials.
The) excessive costs of building during 1946 were
forced on the public by disorganization due to unrealistic

President, First National Bank in Wichita
It

tant

from quicker

come

elimination

C. J. CHANDLER

;■

shortage of skilled workers rather
than a lack of building materials.
construction,'

the future of industrial
and apparent backlogs will
orders as soon as the flow of goods gets
in balance and the farces of competition

uncertainty

Present

expansion will be eliminated

Better values will

untoward

greatest employment.

matter of labor disturbance, although many of our operr
ators will be faced within the next six months with
signing new contracts with the unions.. As our labor
has been paid average or better wages, prospects for
peaceful adjustment $eems to be fair, but.on th^ whole
the future of our financial position is dependent upon
the outcome of labor and management's ability to bargain amicably,j
•//•';/;/ //
/;•/./ /
Ample bank credit for eligible borrowers is available
here, so that business, in general, will not lack financial
assistance where"

warranted, and barring any of the
developments which I have touched upon, I
think that business in general is entitled to view the
future with considerable optimism.

the increased produc¬
Johns-Manville plants was the
growing stability of the company's labor relations,. an
attendant increase in worker productivity and an im¬
provement in available manpower.
.
,
Johns-Manville also engaged' in a $50 million expan¬
sion .and improvement program which will increase
factory floor space by 42% and provide 25% greater
employment than in the company's peacetime year of

biggest; peacetime coristruciton*

y^ars

1940 rate of production.

Among the principal reasons for

will

one

the-construction industry, was increased

tion of these materials of

already have taken place by Spring.
the

period Johns-Manville, large

50% in 1946 over the prewar

prospect for the spring and summer of 1947.
.The real trend in construction costs actually started
down around July, 1940, according to industry econo¬
mists A lower building costs level is now in prospect
for the Spring of 1947, and this
should enable. prospective builders
and home buyers to proceed now on
delayed plans because the downward

adjustment; in

producer of ; building materials, insulations, and allied
products, stepped up production of asbestos '
shingles, asbestos-cement flexboard,/rock < wool home
insulationand other/badly/^
until double the rate of prewar production in-1940 was- achieved: Johns-Manville production of insulating board,
transite 'asbestos-cement * pipe and conduit,-in heavy -

.industrial

;

Sales, Johns-Manville Corporation

During this .'unsettled

L. M, CASSIDY
Vice-President for

Thursday, January -23,1947

Speaks Alter the Turn ol the Year

Business and Finance

FINANCIAL CHRONICLE

JTHE COMMERCIAL ft

426

research facilities to help
less expensive, more
-'
i
/ '
f We are now entering one of the most dynamic phases
our industrial economy has ever seen. We can anticipate
than is anticipated.
a rapid obsolescence of machinery and methods, as this
It is to be believed that 1947 will see a return to more
country's industries install new machinery and adopt
normal banking conditions than has been experienced
new methods of manufacture to capture their markets.
during these last years. "The shift from a buyers' to a
Particularly due to the unprecedented rise in produc¬
sellers' market in many lines, inventory maladjustments,
tion costs, a wave of increased mechanization and indus¬
and probable surplusses in finished goods, and even in
trial plant streamlining has become almost a vital neces¬
some
raw materials,! will
cause bankers to scrutinize
sity to keep prices within consumer buying limits.
statement figures more closely, and inaugurate controls
In 1946, government. controls and, labor unrest, imthat have been impossible during the war years. Mortals
peded much of the progress which might normally have,, tIlai' "ave
uui*v»Diui_ _
been expected in that period, but for the next four or
Ry of poorly established and and justified refusal to co
economically
.«{
cnJ-»ctor»fia1 tmliimo
nesses is likely to be high,
five years, there is the prospect of a substantial volume
operate, in; perpetuating artificial situations will be
of activity in the manufacturing and heavy construction
common. It is not believed, however,
that there will
industries///■* *"•"// -•
j
be a widespread tightening of credit, but that a more
realistic approach to business finance will hold sway'.
D. L. CHAMBERLAIN
This does not mean that credit extensions as a whole
meet

for expanded

the consumer's demands for

efficient goods.

;

•

n_-

■»

unsound busi...ill

X1——-

**'

V>,

•

Jfj The construction industry has
freed from its fetters.

only partially

been

Price control has been taken off

building materials which helps greatly, but it>was only
Dec. 14, that the President announced the apparent

end of the

$10,000 dwelling ceiling.

Furthermore, noth¬

ing haj^as-;:yet

^^->iwcomplished\in' the 'adjustment cf
Capital will hot ilovr into' reiital housing

rent control.
in

ample volume

tenance

expenses

long

building costs and main¬

above

tpe peak war;y4ears,
most ^ere rtatiire/
and we have.386 concerns employing /should not bring more normal and more satisfactory
under, one hundred .persons, while ! • relationships betweeii banks, arid their customers than

As to rent

some

control

existing dwellings until there

substantial upward adjustment of rents, a very"

large volume

dwelling

space

of ^modeniizaticiri* arid"~creatiori

:hew/;

During

1946, the building industry parked

cpntiriiie? throughput

a^aihst;

the armed services and

war

industries had io 'return to

lish their

operations, and realtors had to have time to

buy and assemble land plots.
1

providing
-

On top of these conditions,

•

•#«;»

vened* home-building became

political football,

the

| realities^pf building industry conditions after af prolonged
war were

lip

swept aside by government officials who had

practical construction •• experience, and the Govern-

| ment set

entirely unrealistic/goal of

1,200,000^ homes

| for 1946, the first postwar year. \,
^ ; ^The result of these cpnditions was thd^diTheariy eviery
construction job, the contractor ran short of some heces-

sary

,it»;-

material
—-i—

preventing him
-L-

•

his expensive labor sto
"rfl
^Pensive labor stood idle,

decisive

???*/?

vmerchfndfee^driV.Ijfe*-2^^
in

finishing the job;

from
-

•

large demand/.

?ng aware

/ down
in cycles / weref.1 inevitable.
When^ this produced -its last depres-

■

■!

adjusting inventories as rapidly as ppssible;
over-all prospects for this year are good.
/
/ In the matter of. real
denced
will

;

and-the /;

not

estate,^^ there is ndW; being :;evi-/?

leveling off in prices, whichsit /is /expected;/
through' 1947. ' Buyers are/showing -in-l :
discrimination in their purchases of homes,

creased

although

large demand for

housing, which

to?Sem^iWingf
^/

basically

create/maximum']

/ do is to supplement and support pro¬
duction by sane, tax and fiscal poli-?

there is

sion, the opposing theory of. underr
pinning the , business
system / by
government action was given a trial":
It was found that^ government can-i

'productive employment or enduring
purchasing power. The best it can

continue

h
,
i
"
sharply,reducing output, industry and commercial uses:
*

fAn+nv

vbf^ this,

it needed

external help/and would work
out'its own corrections. It was felt
that the forces which drove it up or
n6

are

PWr/hkhonal
operated

oh the the conviction that

in: -the^iriatt^pLiryetaii
a high leyei, and although -there is a very$efin jtfs ampunt y ••
of buyers* -resistance, which is bound ;;tq result; in^-some //
t
price adjustment in consumer, goods,i. there will still be ;,v;
In^An

It will begin to prove

history the business'System

year.

busiriessi ^system /can >adjustvitsplf tbet^een
forms b| economic action fundanientally'opposed^ to bach

creased volume,

whether bur

I -think;

l.'i..

;

will be

the Government inter-

v/.-•••/?■.^r/.

SAUL COHN

tjhere; is :some * basis * ■
iadiuStmienti/jOf
i
//expecting ; an ;;iadjustment of
which Jyijl /betpffset vby/in-'

tained.
*-■

forest,

factory, and building-site Jobs; .contraetors1 arid
dealers, out ol business, during the war, hp4 t<» reestab-'

■■

s,
i
are
wbol^s^li^^/ll pexieye, • arc
warknted in expfectirig a good year,

jtlme since the beginning of; the

■/ ••' s

President,.City Stores Company
1947

Our '

terrific handicaps. The war-depleted;pipelines.of bhild-'
ing materials had to-be filled; labor, widely dispersed in

•

able

fifty-six employ;jfrom^.pnesb#dre<|;:w-^hasi:^xisted:
to .five^thousand, i In pur area jhere
decade. • .*
is a wide variety of riiefal specialties
"

produced, together with other diver-.
sified lines; which are in considerr.
_'.i
r?. 1.^1:
.dempnd, and /1 / Relieve4 Will

through sub-divisionhouses; wili/-

Be deferred. /•/

at.did oui^ng

.as
.

will receive the attention

it deserves. Such an adjust*
interests of the stability and

long range-welfare of. the country. .
Barring, unforeseen, political and economic crises of a

;
continue at /the same (^vels

.should

dwellings should be revised upward.

and encouragement which
ment will be much in the

employment

at full, capacity,

/ing

beep allowed, to rise xply *a small
prewar levels.
Rent control on J ~
—
new"

«0 auvuiu

efficient business operation

income from rents hag
I fraction

«««• umj -wxaw,

iuum,

uisniu, *

mis

above prewar, whereas the.

far

are

industry

interruptions to production through labor difficulties,
can anticipate an excellent year.
Practically all of our
plants in.this area .are^opOrat- -

Saul

Cobn

cies.

It cannot:supply the

Business is on its own.

flywheel.
One of its

nito mSrot
a on page,428).-,
^

dumber: 45'62-

[Volume 165
I

IHE COMMERCIAL & FINANCIAL' CHRONICLE

427

■•j-i'iVV

than

Independent Banking—It Musl Be Preserved!
(Continued from page 394)
ing

ever

then

enjoyed

we,

committed

remain sound, then we
position to minister to

are

people,

any

those who

bankers, will have
default, the serious¬ false

of which would be

ness

tragedy.

which

shall

reconstruct

shed1 over

the

tions

"art, ; for -Ihey will "be Vthe monu¬
fabric' of ments of a more glorious edifice

the

than Greece

demolished

government?
Who
shall rear again the well propor¬
tioned columns of constitutional

Rome

ever

The
it

dations of

saw—

ment.

the edif ice of constitutional Amer¬

American

banking system
heretofore existed and

has

are we, as
conscious of the fact that

industrial

obligations

conditions

occurring

word,

citizens

bankers,

fall

trying.'' Witness, if you will, the y
phrase-making sugar coating with
which their deadly potions were

that problems local to

for

group, a

State, should be decided
by those affected thereby, and not
by others; that system upon which

inspiration and guidance?

First of All, Banker Must Be

must

Proper Funotion

endeavor

the
of Banking

shall

never

that

see

system

diverted from

woman

self-reliant

its

Let

competence.

I We

sence

front

details

known

network*

asked and answered recently in the Voice

was

broadcast

Cities Service

was

"Cities'

necessarily concerned,
therefore, with any indicated ten¬
dency leading, or looking toward,
centralization which might result! selves to take an intense, contin¬
lh diverting ^he^sdurcek M fhav uing interest■■ in this thing which
system to ends other than those we Call government, this machin¬
above outlined.
ery which has been set up to belp
us
live in peace, happiness, and
.1 am sure you all feel, as I do,
deep gratification for the Boston prosperity with one another—this
Resolution adopted 'at.
the

American

ciation.

meeting

Bankers

threatened

Asso¬

Service has

kockholders.

These

than 350,000

stockholder-owners

this

and

the

fight

the system preserved.

There

attempts being made, and vig¬
ones, indirectly if not difjectly, and notwithstanding the

question.

Clearly,

money management be made

effective.

Money created to meet the de¬
mands of political
expediency is
wild money—it cannot be put to
harness, it cannot be managed or
controlled.
efforts

the

long
of

all

run,

fail

must

nature

very

from

the

thing
sought to be managed.
On the
other hand, when sound money
has

been

restored,

the

^tieed

put to harness. It wants to work.
It. is willing: to dp its
functioning of business.
'"
,

Local Banking. Control.

•

matter

whether

;..bapkin&^

)be ? alert against the .creeping
paralysis - that fc^iCS frbm - 'tirrsound innovations bf government

demonstration

the

application

for

what

someone
ever

moment

Daniel

viand,, right

"down to

-Numerous

service

the

reserves

-A line of household
from

products

petroleum and its de¬

rivatives

-Other

ships

new

links in the chain

production, refining,

keting

improvements in
and

oil

mar¬

transportation

and

facilities for petroleum and

other

natural gas

- •

May

This program for

1947 is in line with

and the construction of

facilities.

new

and modern

growing public demand for the Com-,

should. sweep
from-the o.cean, jan-

pany's- products and .services — an ex¬
panding market which has made neces¬
sary
the j expenditure of more than

family

fidence and will strive to merit

^455,0010,^00

tinuance of it.

war

future
toUy; Replenish

new

it;

oim

sirice: 1930 in acquisitions

•

;

i..

,>Y'-

;

appreciative of this piibliq. con¬
-

fields,

cultivation they

Cities Service Company
'"j Y'

w. ALTON

*1;
4

be Rebuilt: but who

■

J*'-'' ** I > '

*■'

Every member of the Cities Service

,lt

Ipftybpiiidrs bbould : fallr !ahfc'rts
gorgeous defections' be jail
,;.coy^r:
may.

Hugoton

field in Kansas

stations

both here and abroad

'rShejyjfe If

de¬

overcome;

desolate and lay waste

yefred
hit these

member

said

elegy
r

their effects

still under

a
<

Constitu¬

misfortunes

our. commerce

ind^try,

while

Webster

General Washington:•

disastrous

-Additions

second

expansion of the Com¬

the

sition of latest type

our

building

marketing facilities

family."

veloped

pany's tanker fleet by acqui¬

struck off

110 years ago about the

country's population is

-Research will be greatly

Chicago Refinery

miles

-The

by the pen of man.

borne

entire

of the Cities Service

major pipeline extension of

;gro\v green again and ripen
Itoryesfs}' it, w#e bUt !a
Sensibility; in mbney .arid' ciedit. trifle; even if the walls of yonder
Jrbese: unsouhd practices 1 have capital -were; to ^crumble; If its
r^erral v£o;v hfaye ferippied ' the
in this!,"

East

-The

our

greatest document

"Other

billion

products and

metropolis of Phila¬

One in each 70 people of the;

delphia.

-Complete modernization of

natural gas

the size of the great

city

!»

bb^future

Nov; ,5th. <

useful

400

Pause

plant and

population of 2,000,000 people,

and tools which in turn;

type aside and
to take into their own hajids the
control of government.
Ajjcj', they
nearly succeeded in that, under¬
taking—not by physical fqree, but
by the exercise of those rfgnts. and
privileges of franchise bestowed
upon us under bur Constitution,

read

small,'

stockholders and

employees of Cities Service represent

Company has built its program for 1947:

always in the

the

sweep men

referred

are

of fellow citizens.

millions

This is capitalism at work, and upon this foundation the

that-would ^estrdy the basic cob- ] will

'apd. jvyer©takingtoefr; Ml

worth

XJnion.'

services

With their families, the

that

have had before

State It
rights; in

they provide

resources,

of forces that were determined to

individuals

furnished last year a third of a

dollars'

been

course

.will largely
tion, in his matchless

disappear-,. .Sound: nioh'#; cap,be

natural

direction indicated by the greatest
force, whatever that force may be.

We must beware, too, of the
specious argument that only when
the banking system is so unified
can

government whose

ernment trends are

that

example of wide¬

with' violent; changes

liest. B No

are

holdings

but together

majority opinion, or that partici¬
pation is intelligent or unintelli¬
gent, uplifting or debasing, gov¬

won

orous

position of the Association

Their

being determined by major¬
ity opinion, by those whose par¬
ticipation in its affairs is the live¬

American banking.
We must not
deceive purselves, grow apa¬

think

located in every state of the

now

and

has

are

in its objectives, its functions, its
direction .in fiscal affairs.
It is

I shall refer to this

again.
The Association, by the adoption
of that resolution,
placed itself
squarely on record against any
attempts to impair our traditional

thetic,

which-

government

station WJZ and the ABC

the

over

selected

spread ownership, and this is what the broadcast revealed:—

banking, which
must be preserved if a free bank¬
ing systfem is to survive.-. Our problem is to- bestir our¬

are

This question

of Business program

get down to the, real es¬
the problems which con¬
as banker citizens.
Let

intimate

decen¬

mechanism

;

orporation #r

great, noble

for the moment, set aside those

us,

old-age

this

perpetuate

ment.

engaged in making his or

hfer owh way toward

man

determine

will

non-monopolistic credit
and money system, the foundation
stone of a representative govern¬

proper
function of serving the
needs of industry and of the in¬

dividual,

destiny

tralized,

that

movements

System

banking

the

of
today and tomorrow
be, first of all, a citizen—
he must participate, in the

that

concerned

optimism,

banker

recently,

Russia, and recently, too,
Germany and Italy.

are

early

imperceptible, yet rapidly

hot succumb moving, disintegration that proand to view
(Continued on page 429)

is my profound belief that I
addressing men of that cal¬
iber, men who recognize that the

American

It was this

pleasing vocabulary.

exact opposite of
the system embodied in the
gov¬
ernments of
England,

masses

been built—the

the

Citizen

American Government, American
industry, American finance has

advocates

almost

As bankers, let us

o owns

or a

and

how quietly

sion?
Are we helping to mold a
healthy,
constructive1 sentiment
among the people who look to us

top down, that control should lie
with, those possessing the neces¬
sary information on which to act,
city,

us;

money
through government
issue to keep the voters purchased.

balanced budget and

ing

the

country;

banking system proof against de¬

fenders Of those substantial phil¬ destined to a mournful and mel¬
development of
our
system, consequently, osophies which guided the strug¬ ancholy mortality. Bitterer
tears,
peculiarly adapted to meet the gles and successes of our pred'e- i
will flow over them
cesSors?
Bo We live beyond the: however,
needs
of
our
people; a system
based
Upon
those
fundamental fetor Walls t)f nur institutions? Are
principles
which
underlie
the we making our influence felt' in
Are
great concept of State rights— our respective'communities?
namely, that we should build from we helping to construct barriers
the bottom up, and not from the against this tidal wave of illu-i
with

administered

and unassumingly these

volving intp a monopoly, provid¬

not again.
Like the Colosseum
de-; and the Parthenon, they will be

constitutional govern-

Those who would have de¬

nearly won over the unsuspecting
by the sweet music of •
catch phrases and the charm of a

through

they will be raised

have

—

columns

...

stroyed these principles may re¬
turn.
They will be everlastingly

ican liberty."-

are

exists, is the mature product'
of long and
steady growth, re¬
flecting changes in economic and
now

activities of those

and

sought to destroy the very foun¬

the opera¬
who

with too little concern

or; Crrecian

being constantly liberty? Who shall frame together
Sound Money Essential
dinned into their ears by every the
skillful architecture
which
known device of communication,; unites national
The first line of defense to pro¬
sovereignty with
and by every avenue of approach State
rights, individual security tect that matchless document is
to the human mind.and public prosperity? No, if these sound money and credit, provided

succumbing to the

notions and destructive the¬

ories

national

are

were'ever

monuments of < Roman

JONES,; President

con-,
•

;

F'V:;'

SpeaksAfter^ the Turn <il the Year

Business and Finance
have

-j-from page 426)

without which "free enterprise" cannot be
achieved. Unfortunately, to date, this has not been done
adequately.; The market is subject to monopolistic and
cartel influences by both capital and labor, to adminis¬
tered prices, to resale maintenance agreements, and to
many other contraptions which enslave a substantial
area
in the market place and narrow the number of
customers.
These are obstacles to full production and
create a business system which frequently prices itself

market,

of its market.

out

well

done

the

South and

plans

'to.

for further

expansion in this region are now being formulated.
The Alabama Power Company

is erecting a new steam

(A.)
In the railway car
following situation obtains:

generating plant at Gadsden, Alabama, with a capacity
of 120,000 kilowatts, at a cost of approximately $12,000,000 to take care of the increased demand for power
in the state. The company's plans call for an expenditure

Company

Electric

has

and

of hours of labor and

and

Retailing's top management will have to devote more
and
energy
to resource relations.
Distribution

prices of things which the customer
quality of selling should be stepped up and
selling made a career and a profession.

needs,- The

1947

favorable elements appear which can
be utilized to make a high level of employment and
production. There are also unfavorable factors but these
can be gradually ironed out.
However, conditions favor
a good year if management measures its responsibility
and makes an aggressive effort to overcome the stoppages
of production.
It

will

many

take

heap more of spade-work and longvisioned policy on the part of business and labor to solve
the problems of a capitalistic system which seeks to
create economic as well as social, religious and political
liberty. All interference of production, either by gov¬
ernment, industry or labor, is an aggression. It stymies
the kind of prices which should be worked out as a
democratic objective of our business system.
a

gasoline motor buses.

served with natural gas.

checked

JOHN L. COLLYER
President, The B. F. Goodrich Company

be brought within the benefits of our productive demo¬

with about 73% of that amount being

cratic system. We need a more intense and enlightened
sense of cooperation between the makers and sellers of

American-made

goods. We need a
transactions and

engineered approach to handling
greater vigilance against rising costs.

rubber.

most of 1947 we should
producing at top speed in
meeting the yet-unsatisfied backlog
Through

still

The system must demonstrate not only that it can add to
its own security by consistently strengthening its finan¬

that

customer

gains from year to year.

Our

ucts.

company's estimates are
coming year—assuming
material
shortages
or

stoppages and the production
to six million automotive
— total
rubber consumption

work

JOHN S. COLEMAN

•

five

vehicles

President, Birmingham Trust National Bank

^Industrial activity is at
is expected to

barring

Will

high level in this district and

continue for the

strikes

remainder of the year
national economic upheavals.

other

also

would

This
the peak
wartime years, and be considerably
higher than any previous year other

semi-skilled

skilled

labor.

the

installation

fifty-four

inch cold reduction mill at Fairfield.

about 60%

industry.

Another

major

improve-

total

ment is the installation of equipment

i for

the production of galvanized
sheet metal in coils which will mean

cut

sheets

but

unroll

can

his

hearth furnace, a new battery of 63 modern coke
the opening of a large new coal mine and in¬
creasing the facilities of present coal and ore mines.

open

ovens,

The cast iron pipe companies have booked orders for
the next 12 to 14 months and are now running five days
week with two shifts and production is about

70% of

capacity. The bottleneck is lack of an adequate supply
of pig iron and scrap.
During the war the blast furnaces
•

with little time out for repairs. Now many are in
need of relining and other rehabilitation. The strike
some
months ago caused severe shortages in the raw

ran

material stockpiles and these supplies must be built
up
again before pig iron production can be fully resumed.
The

five

cement

mills

this

area

running at
capacity with large orders for future delivery. The pros| pect for increased building and road construction makes
; the outlook good for this industry for sometime to come
The consumption of cement in the Southeast now is
.

above
more

are

the national average, due in
part, however,
favorable weather conditions in this section.

M The farmers

are

in better shape than

fall, it is thought that most of them sold their cotton at
peak prices before the market break some months ago.
use

of modern

tion Of crops are
The

machinery

farms and diversifica¬

remains

but

there
a

ma¬

prices for business property

and older residences.
.

Alabama is

one

of the largest timber and lumber
pro¬

ducing states. The. removal of
strictions has
inen

many

governmental

re¬

greatly improved the situatioiiluhiber-

look forward, to

favorable ^ear.:1^

other chemical

and union demands for new wage
retroactive portal-to-portal pay.
It is
hoped, however, that these adverse factors will be cor¬
rected without a severe business recession.
inventories

anced

plus

increases

■

FREDERICK C. CRAWFORD
President,

Thompson

Products, Inc.

less

and

business

makings of a national recession are also
The American industrial manager

less obvious.

of this B. F.

Because

Goodrich, in keeping with the

Harbor of

rich

rubber
as

tires

and

other

fog,

the productive
tools, the skilled
and management know-

has

manpower

Great

how.

customers

goods

markets

eager

beckon,

with

and able to buy if

be produced of high qual¬

can

ity, in sufficient quantity, and at
prices people will be willing to pay.
The rough course we are sailing

F. C. Crawford

making. It re¬
sults from the unsound policies which
we as a nation have been following.
is wholly

pound

our own

1925.
Minorities Can Paralyze

1947 the supply of pas¬

the great labor monop¬
unions—minorities which draw
their power to paralyze our economy from the privileges
and immunities granted by New Deal law and policies
First

tires will be, barring unforeseen disturbances

production, in

demand.

though total rubber consumption

Even

fair state of balance

likely to be less in 1947, the total units of tires
same as

is
should

for by

farm

/trial; tires, and motorcycle tires.

i,i

»_

j'/,.:

li.

A w.at.innn

infliietri'al

monocfomont

It is difficult for! American industrial management
to plan wisely for sustained job-making production in
_

the face of the constant threat

of.crippling strikes and,

re^p^|^ssueStoday is whether power-hungry leaders,

casings for

service, airplane; indus-,

ago.

autos and about 12 million truck and
bus casings, whereas, the 1946 totals are expected to be

The ,remainder of the 87rmilIiom unit;

monopolies—the recent coal crisis is an example
—threateiv'free America fully as much as the great busi¬
ness trusts which were legislated out of existence years

be for passenger

trucks ^nd buses.
total is accounted

international

These

tires.
total, probably 70 to 72 million will

66,700,000 passenger-car tires and 15,500,000

have to contend with

during the past 14 years.

for 1946—about 87 millions—because

larger proportion of them will be passenger-car

Of the expected 1947

olies—the

with respect

night

plant, the improved

cartels, which in
American
products, and have caused

Probably by the middle of
senger-car

reefs all about.

country

Our

to lessen the hazard

price skyrocketings that reached $1.23 per

recently

seas

hidden

with

past have been reflected in the cost to

users

cargo,

uncharted

high rubber prices resulting from

the

homeward bound with a
feeling his way through

equipped,

decisive action at the law-making
adequate standby
production capacity is maintained, and that there are
certain minimums of both production and use of Amer¬
ican-made rubber, regardless of strictly economic fac¬
tors, even after the supply of crude rubber becomes
almost completely sufficient to meet normal demands.
In addition to the national security need, maintenance
of American-made rubber-producing facilities even at
urging prompt and

level. The nation must make sure that

serve

here.

today finds himself in the analogous
position of a skipper on the bridge
of
a
stout ship, well-manned and

it took as early as 18 months before Pearl
calling attention to the importance of Ameri¬
can-made rubber to national security, has been strongly

position

modest levels of output can

potentials for an extraordinary run of good
in 1947 are present. Unhappily, however, the

the

All

acute

selective buying, also of

terial recession in real estate

be about the

advancing steadily,

housing shortage

evidence of much

become

they have been

| in years. While agricultural production was below that
anticipated early last year as a result of excessive rain¬

The

Collyer

subsequently, to satisfy America's rubber tonnage
requirements, the need for maintaining the nation's
facilities for production of American-made rubber will

coils and cut off the metal in needed lengths. Other plans
of iithe company include the construction of
another

of the total tonnage of rubber used in the

use.

and

and
John S. Coleman

longer be limited by the size of

mill

John

However, it is clear that as the supply of crude rubber
becomes more and more able, in the late months of 1947

i that the Southern manufacturer will
i tio

indicate

the sleeping car service.
(C.)
In the field of petroleum

engineering and construction, production has
fairly well maintained despite difficulties in
material-procurement .throughout the year.
Unfilledorder backlogs are large and still increasing.
Newly
developed processes and equipment therefor are attract¬
ing many new inquiries and orders.
In conclusion, business has started the New Year at
a
high level and with reasonably good prospects. Un¬
filled-order backlogs are still huge and total buying
power is unimpaired. There are some sour spots in the
national economy, including price distortions, unbal¬

world, not quite so high a proportion as the 73% con¬
tributed by American-made rubber to this country's,

J most modern sheet mill in the steel

high levels.
In the sleeping car operating field traffic volume
at the highest level for any comparable peacetime
period in history and about three-fifths again as large as
the previous boom-era of 1925-29, with prospect for a
sustained good traffic-volume in 1947, although at a
somewhat lower level than in 1946. Profits are squeezed,
however, between the swift rise of prime costs (wages
and materials) and the fixed level of rates charged for
(B.)

been

1946 man-made rubber accounted for

that for the year

When it is completed it will be the

statistics

railroad

process

1,700,000 tons, whereas total production of crude is ex¬
pected to be only 1,200,000. Man-made rubber of course
can and will make up the difference. It should be noted

Company has announced plans

for

;

of crude
rubber at least through the coming year. Rubber offi¬
cials of the world's leading rubber-producing countries
estimate total world consumption of rubber in 1947 at

| The Tennessee Coal, Iron & Rail¬
road

tons.

even

that there will be no surplus

groups;

Some of the companies are providing
courses
of instruction • for the de¬

velopment of

available

Best

Quality and supply, especially in the
and

950,000

surpass

than 1946.

The available labor has improved in
unskilled

around

the

that

the

serious

release the

may

at
■;

of demand for tires and other prod¬

cial body; it must also demonstrate that it can produce

Crawford

expected flood of railway car
equipment industry needs to
maintain high level production of the cars that railroads
and shippers are demanding.
(Orders for $25,000,000
worth of new freight cars were announced Dec. 9, imme¬
diately following the ICC announcement.) This freight
rate increase will add about $1 billion to the railroads*
prospective annual operating revenues. That this can be
translated into huge equipment orders in 1947 is indi¬
cated
by a recent Office of Defense Transportation
report that the railroads of the nation will enter 1947
with fewer freight cars than they owned at the beginning
of 1946 and that lack of steel and other materials has
slowed up output, while freight has continued to move
1947,

orders

of the agricultural, mineral and manufactured
products best suited to be produced in the South.
study

America's rubber industry operated at an all-time high

not only

need

stop-and-go

production of 1946.
As regards Orders: The 17.6% increase authorized by
the ICC Dec. 6th in rail freight rates, effective Jan. 1,

level of production in 1946.
It topped the million-tons
mark in total rubber consumption for the first time,

sights;

new

the

characterized

that

ported entirely by private enterprise and over a $1,000,000 has been raised for capital purposes. It has 46
scientists and other trained personnel, devoted to a

some

by the unprecedented suc¬

cession of slowdowns and stoppages

ably and is attracting attention and support not only
throughout the South but also in the nation. It is sup¬

goods for more
people at lower prices, in order that more people may

We need

goods at lower prices—we need

domestic economic
single productive

unit throughout the whole year, un¬

consider¬

The Southern Research Institute has grown

general

fold gears of the
machine mesh as

production 60% at a cost in excess of $20,expects to not only increase its present
facilities but also expand in many sections in the South
It

now

long view, high production schedules
in 1947 will be assured if the mani¬

its

not

railway car builders continued to be
plagued with shortages of steel and
other critical materials. Taking the

000,000.

the

flow

anticipate that shipments
for the first half of
1947 should
nearly double the estimated figure
for the last half of 1946 when all

The Southern Natural Gas Company has plans to in¬
crease

smoother

productivity,

labor

non-recurrence

strikes,

announced

should urge fiscal and tax policies which help consump¬
tion and work out a better balance between the value

increased

ume,

$50,000,000 within the next four years for the further
expansion of its facilities in Alabama.
Birmingham

manufacturing field

regards Production: Given a
essential materials in adequate vol¬
As

The

A. CRAWFORD

President, Pullman Incorporated

plans to spend in the next four years $9,500,000 on its
properties in the Birmingham district. The principal
expenditures will be for the expansion of its electric
distribution facilities and the replacement of the present
street cars with modern street cars, trackless trolleys

time

1947

Thursday;?^January

COMMERCIAL*FINCHRONICt-E'

THE

„

jjpidly challengethe-Soye^eignty^of pu£!*epub "
permitted to run America; Public, opinion*
be, • shail be permi
(Continued- on:page <430) W • '• >•
.
-

: isssia
-Volume 165
me.

Number 4562

THE COMMERC
COMMERCIAL ft FINANCIAL CHRONICLE
Bankers Association to ponder
the words inHhe Boston

can

Independent Banking—It Must Be Preseived!
(Continued from page 427)

ceeded

under

our

very

orderly^ fashion, all canculated to
disarm

banking and the autonomy of
the laws of the separate States
with respect to banking and

well equipped, adroitly directed,
in swept along with the mania and

eyes

zeal of a crusade.

us.

^Banker Held Up to Scorn

;1 Witness the mariner in which it
Let us review this pageantry of was made to appear, that the bank*
disguised Europeanism that crept ing problems are far removed
into our way of life:
from any general public interest.
,f
repu*
constitutional

the

guarantees.
2. An attempt to destroy the fine
balance of power between the
three

Departments of Govern¬
established
under
the

ment

Constitution,'
3. A

bureaucracy in full flower,

the

and

extent

was; thought

never

which

possible.

;

ation,

extending
and

into
of

recess

every

■

our

na¬

tion.

independence of a State
local
government
pur¬
chased outright by the exten¬

is but

and

izens

central

Administration
the

over

Wilson.

demanding
2.

Washington down to

those who

It is:

active

in the Preamble to the Boston
Resolution that (his declaration
is binding on all divisions, com¬

not

come

us.

The

world

watching

are

participants

the

our

the

cause

govern¬
our effort

time and
v

vigorous, personal part in
organizations established to prethe American way. .,1; '.

serve

5: Interest

ourselves

actively
-

7 to
it that only, men I.of
proved1 integrity, acknowledged
experience, and genuine /capa?
city are elected to serve in pub*

•

?rid ' con--

lie life.

Progress is

Make the needed personal
rifices

psy-

8. Speak out boldly for the things
we know are right. •

through the staggei'7 r
| v
ing burdens of taxation. ^ /
9.
11. Private initiative, private hold¬
ings, swept aside to give way
to political manipulation and
usurpation,

6. See

apace

necessary

New

gov¬

Jersey.

ernment.

10. Brand economic lies whenever

college fledg¬
lings constituting the advisory
council to men in high gov¬
ernmental places—Sparrows in
eagles' nests — hazarding the
heritage of 140 million people.

and wherever they appear, ir¬
respective &i their source or
their manner of presentation.
11.

mined to make itself its own

banker, with unrestrained and
power to deter¬

Small in size, but

Identify by name, If necessary,

mercial and industrial

those

13. A Federal Government deter¬

uncontrolled

large in residential,
growth, this

high or low places,
upon whom the stigma right¬
fully should be fastened for
corrupting, demoralizing and
despoiling the citizens of the
republic.

com¬

many-

sided state offers unusual
opportunities to its

citizens, its businessmen and its manufac¬

expenditures—
To do these? same things, our
to write its
own
ticket; to leaders were
given a mandate on
escheat the savings of the peo¬ Nov. 5th.
ple, deposited in the banks of
the country, by making sumBranch Banking
..".1 mary demands upon the local
In conclusion, ;I-refer again to
banker;* to ^uhstitute * in ' our
financial system political con- the Boston Resolution on branch^l for pianagenaL skill and hanking. All that is writteminto
its

acknowledged fact today in

sac-

preserve

sound, safe leadership in

12. Inexperienced

mine

dangerous to,
American > system - of State
rights than any other form of
capital concentration.
That must
the:

constructive politics.

jprpmotedjv

own

turers—and to you

who wish to locate here.

experience; to institute a co¬
lossal orgy of spending in or¬
der
to. perpetuate' itself
in
power; - to flood the country

•'

with

its;

securities, upon

own

During 1947, Public Service Corporation of
New

that mandate-has

a
very direct re¬
lationship to all I have said about
the American way. of life, and the
obligations of the banker-citizen
to do his part in its preservation.

placed its own value,
purchased; by the de¬
and powerless cus¬
todians of the savings of the ment, is the money: and credit
people—the throwing, off .of system. Let us notybe blind and
arrive at the illogical conclusion
ail moral and legal restrictions
mat 1 the take-over is impossible
a
rpsponsibUiUes
in' America.
heretofore, have • guided the
to

fenseless

fiscal
menti

operations ;of: govern^
as

well

all. private

;

actively in the

steady growth

of "The Gard

7A!ssociaS'
tion,\when in session in Boston,
^ subsequent
meetirigs^wheti
.

passing^of ".the

arid^^

Wagner Labor Relations: Act,
probably the most, inflation*

Jersey and its subsidiary companies

will continue to
participate

The first" take-over, according; to
Karl1 Marx; in prder to exchange
free government for slave govern¬

which it

had

banking;

thq

aryj ihost; unfairiariA unconsti¬
tutional act every. placed^ on

statute books ;c>f a, ffe€r
country, unfair most of all to
the rank and file of the honest

the

laboring
All

man

and woman.

this before the

advent of

Each and every one of
tivities and movements,
out of the

sented a

'"'-Ww.i i'i in''"

these ac-financed

public treasury, repre¬
formidable, relentless foe,

http://fraser.stlouisfed.org/ AU
Federal Reserve Bank of St. Louis

that resolution was;
rereriiphasizedj
no doubt; of its
meaning, inir
plications and importance; and
-

that

pieaning

was to prevent a
money and; credit monopoly in
this land of the free.
Here it is,

word for word;

•

"Branch Banking—

"We
#

the war!

Suchj

create a

monopoly more
and destructive of,

wish to bestow

trolled? from>thes^ seat^pf/gov-' 7. Throw off the blighting
ernment. .1"J;: •-;
V; • 'X .a
(7 chology of fear.
on

would

ment.

10. Confiscation of property "going

concentration

4. Take

control

reign of terror and fear of
reprisals crushing the spirit Of
independence of our citizenship
—a
veritable inquisition, in-

bers of the American Bankers As¬

money and credit

3. Tear off the mask of
corruption
and incompetence wherever or
whenever it appears in govern*

9. A

company camouflage.
It calls to
the attention of the 15,000 mem¬

concen¬

for banker-eit*

upon

ment

abundant life."

V', spired;

ing privileges across State lines,
directly or indirectly.
We re¬

against

arid to continue

and our means.

exercised over
the daily lives and operations
of our citizens under the benevolent
title of
"the" more

pursue

Give

•

8. Central

bank-

affirm the statement presented

with

affairs of government — local,
State and national. iV

public treasury by all the Ad¬
ministrations during peace and
war, from

branch

defense

answer—there

one

course

legacy

1. Be

exacted from the

was

„

price of its operations
few months' period, as

much

one

to follow.

government
exceeding -its income annually
by billions of dollars.
as

shrewdness

and which

sess

government.

6. Expenditures

that at this time there
is not
branch banking across State lines
through. the vehicle of holding

to pursue if we are to preserve
the liberties which we now pos¬

sion of elaborate and unprece¬
dented grants from a paternal¬

7. An

the

There is but

5. The

istic

pro¬

any

line

tration of banking resources.

4. A spoils system in active oper¬

hamlet

opposing

synonymous with "holding- com¬
No one can maintain

American; "bobcat.; banks" with
sharp claws, constituting the firsts

and waiting to see to
sociation how easy it was to take what lengths we, the most blessed
which the bankers were held^ trp
the first backward step in dear of all other
lands, are willing to
to scorn; how the wedge of sus¬
old England,
to initiate totali¬ go to.
maintain and perpetuate
picion^ nriddfethisfWaS driven be¬
mittees and commissions, of the tarian
socialisnv-*easy for the rea¬
tween the banker and his clients;
what we still possess, but What
American Bankers Association." son that there were
only five
how the banker himself was iso-.
It demands that the- American branch; bank systems involved in they have lost, perhaps forever.
lated in the minds of the people
Let us not be blind and fail to
Bankers Association
relentlessly the tragic deal. It made each suc¬
as
the one and only sufferer if
that
injunction.
It ceeding step easier, because the understand that centralized con¬
this proposed threatened political carry * out
stresses the fact that failure to
Socialists had obtained control of trol of
banking system was inaugurated.
money and credit was the
Remember how a soothing quietus carry into effect- this charge will money and credit after nationalize first step in the destruction of
bring disunity, which; will Ulti¬
was placed upon all the fears and
mately lead .to? disintegration of ing the banks. Would it have been British free economy, and reprise
suspicious of the saving, thrifty
the: Association., It admonishes easy in this country? Not
Be¬ in the false nptiori. of "It Can^t
people, so that they would: not see
the official family of the Ameri- cause there were
15,000 organized Happen Here.'? >
that they, too, would be victirris.
- ;
Witness

t: A jovial, biit disarming
of

definitely

establishment

diation

panies."

posal or device looking to the

"Diagnosed Europeanism"

Resolu¬

tion, particularly the words "by
indirection,"
which
word
is

emphatically

PUBLIC SERVICE CORPORATION OF NEW JERSEY
'f

reaffirm

-■

'*'*'*

•

u'"

*■'; •

*•**• ••;

AND

ty*

■:

J ?' ,"•**

•

»/•"■•**

•

SUBSIDIARY

»•*...■ .'v/y.

■

• •

."3 '••"*•

••

•'• •'

•

* •

"" *

■fcV

•

«'.*»•*•*'

,£_••

COMPANIES

the action of the Convention
held at Boston in
1937, wherein

the position of the Association
was stated with
regard to the
dual system of banking, branch

A-43-41

Speaks After the Turn of tP-PpiPPPlj-- ^isPi^nrp)^,
the Year

Business and Finance

7;;7^ •

'-X

;

impossible for men and management

equipment; a lack
interruptions, and sable costs, American Air¬
should have a good year in 1947; Eradicating our

Given reasonable competitioh, hew

Planning Difficult

lines

this year's

year

Airlines System
Problems of reconver¬

equipment, labor interrup¬

the line placed many

companies in a

position- in 1946 than the

the preliminary forecasts indicated.
Losses that occurred for most air¬

during the first six months
expected. Air mail revenues
were down because of the decrease
in armed services mail. Millions of
dollars
were
earmarked for new
lines

were

sharply.
Converting
airplanes
received
from * the military services proved

'if '1

has

of these giant'Flagships,

order 50

Later in the year we should

in 1947.

of the 240s, a
300 miles

is another major problem.
gratifying degree during the
war, but thus far has not proved a. cure-all for the air¬
lines. Our own company has a DC-3 which has been fly¬
ing daily for a year on an intensive study of radar pos¬
sibilities. Our engineers and pilots have learned a great
deal.
They still find that there is a vast difference
between military or naval flying and the demands of
commercial flying.
The restrictions on what may be
done by airline transports will make the application of
radar something for the future when there have been
much improved developments.
was

traffic

control

advanced to

S?e,°* tfle bi2l?est problems facing
the

our

business today

large amount of duplication of competitive routes
diluting the earning power of all air carriers—both big

and little—which

have been approved in the past

ing 1947 is still clouded, through the maintenance! of
governmental controls, as regards the amount of ma¬
terials which this country will be
7 ^ /*-•
allowed to

.few

C. McD. Davis

for its own consump¬

the net result forwe would be
inclined to say that there will be4
increased production in
1947 over

the

1946,

months,

and that if fats and oils are
completely, establishing a
world
market, as the year

released
free

be greater.

progresses volume will
There is no
doubt

that

the

country as a whole production was
retarded in 1946. As everyone knows,

difficult year due to
strikes and troublesome labor situa¬
was

very

the record of
surprisingly good.
Richard R. Deupree
Looking ahead — if there is a
realistic acceptance of the situation
by labor leaders and business leaders as well as a sane
government viewpoint — it is our belief that produc¬
tion will materially increase and that there will be a
gradual downward adjustment of prices. Prices gener¬
ally are now too high, and with more stable labor con¬
ditions and greated production from plants and farms,
costs will come down. We think this will make for a
much more healthy economy than the one that exists

tions. With all of that,

Railroad Company

the year was

the

today.

ARTHUR O. DIETZ

interference with

transportation service ac¬
increases, increased
1946, produced for
most railroads the paradoxical situation of [being called
upon, to handle the largest volume of peacetime traffic
in history, at a loss or at a margin of profit so thin, as
to prohibit furtherance of the modernization !
raiL
transportation facilities which the public has a right to
continued

use

tion. Guessing at

President, C.I.T. Financial Corp. and

industrial

twin-engine plane capable of traveling at

The corporation will coordinate many of

Gamble Company

shortening business dur¬

The outlook for the soap and

the nation's
production as did 1946,
and, therefore, do not expect any
sharp or general business recession.
However, the problem of the At¬
lantic Coast Line, which is that of *
the railroads generally, is to pre¬
serve
a
sufficient margin between
^revenues
and expenses toM enable
same

hour.

Airway

R.R. DEUPREE
The Procter &

President,

natural advantages of
continue to justify the
faith I have long held in the potenti¬
alities of the South. Further, I do
not believe that 1947 will see the

receive some of our Conr

permit us to retire all of our
American has placed an order for 100

ground activities, streamline their operations, and
result in a reduction of ground costs and a speed-up in

Radar

new

North Pacific Coast.

that territory,

the

service.

;
7
of banks

diversification
of agriculture and
other evidences of a greater aware¬

Inadequate airport and terminal facilities are being
improved as quickly as possible.
A forward move has been made by all the airlines in
their formation of the newly organized Airlines Terminal

Corporation.

tonnage in products of agriculture and

traffic should be stimulated by
streamlined trains being put in service
Northern Pacific's contribution to "Passenger
Progress" is new streamlined North Coast Limiteds
which will begin service early next Summer on a, fast
schedule between Chicago, the Twin Cities and- the

C. McD. DAVIS

ness

Denney

passenger

the many

tunity. of doing that with which we are all now charged,
duty to improve the standard of living for our em¬
ployees—the forgotten men and women who worked'
doggedly throughout the war and long before at wages
hardly ~ sufficient4 to maintain the white collars that
classify them in industry—and to add to our reserves for
the valleys of the future.
The power of the Fiscal and Monetary authorities over

this year.

problem were simply one of securing an ade¬
quate volume of business for rail transportation, I
would be optimistic with respect to the outlook for
1947. Continued industrialization of
the territory served by the Atlantic
Coast Line, together with further

15 of them'to

solidated 240s which will

DC-3s

Railroad

If the

quite rapidly.

be modified sleeper planes.

Dayis

the

:"i At today's mail and cargo rates and passenger fares,
it is essential that we have the most economical equip¬
ment.
That is why American Airlines is reducing the
DC-3 mileage appreciably.
•; These
planes/will be supplanted as quickly as possible
with larger, faster, and more effective Flagships.
American Airlines, ih the Douglas.DC-6, already has
received the first of its post-war luxury transports. They
will be in service by the spring of this year. American
4

very substantial
lumber.
H. W.

,7
single bank or small group

President, Atlantic Coast Line

industry is permitted to produce in abundance the goods
The Northwest itself will produce

expensive and much of this equip¬
ment will have
to be written off

which make tonnage.

and should be so efficiently conducted
that banking and bankers from messengers td\ presi¬
dents may stride side by side with all America to con¬
tinued sensible prosperity, health and happiness.

rials, wages, depreciation charges,
and airport facility costs also rose

Ralph S. Ramon

)

our economy can

The expenses of mate¬

equipment.

condi¬

dling revenues and much higher,
operating costs due to wage increases and soaring prices
of everything we buy, has experienced a most difficult
year.
However, with the freight rate increase Jan. :i,
our immediate future looks somewhat brighter, assuming

adequately measure the risks that we are taking in loan¬
ing our depositors and stockholders money.
...
I hope and expect a modest increase in interest rates,
for only a 1% increase on the average will mean so
much to the banking system and afford us the oppor¬

for the airlines.

moisture

The railroad industry, with dwin¬

shape our 1947 destiny. We are living and working
in an4 era of low interest rates, rates that do not always

cost all along

worse

year.

can

increasing

far

in our history.

precipitation

fall

favorable

Spring and early Sum¬
mer, thus auguring well for. another
highly satisfactory crop. The Gov¬
ernment is again asking heavy agri¬
cultural production.. Farm product
prices are expected to continue sat¬
isfactory to producers the coming,

wilL gather

As for banking, no

heavy

and

tions for the

and the warmth
t
•
and happiness of expanded business and full employ¬
ment will disappear, perhaps long enough to wreck all
of our hopes for what has the right to be the greatest

'clouds

RALPH S. DAMON

and

d.tion

indicates

guides them. If they do, through bad
or
misguided leadership, tie knots
in our industry by strikes, walkouts
and
continued
inefficiency,
then

dream.

tions

livestock and winter wheat in
the Northwest are in excellent con-

their companies.
large sales volume,
healthy competition,
all resulting
from large sums of money in circula¬
tion, will brook no interference from
doubting Thomas's or just plain pes¬
simism peddlers. On the other hand,
the very people who will
benefit.:
most from a 1947 prosperity may
turn on the hand
that feeds and

crises.;
™
i
i Any one of these hidden reefs could wreck our econ¬
omy in the coming year, but if we can steer safely
through them, we can steam at full speed ahead straight
into a promising future of high production, steady em¬
ployment, and the fulfillment of the real American

1946 has not been a good year.

market holds great promand resultant

<«*v.

mere,

Good business,

to follow this course, and
things of life, we can re¬
wallowing economy with continuing

sion, delays in receipt of new

profess or intend to be a

profits for

shortages and

n. W. DAVIES

;

ise for their products

ity to our land.
(
Unless Americans are willing
to work diligently for the good

| 1947 should be an important year

„

outlook tot * agriculture1 in,, this

territory. Farmers' purchasing power
is high and their requirements for
agricultural implements and other
supplies, difficult to obtain because
of the war. are tremendous. Further-4

prophet but 1947
holds so many promises Of good and of bad that when
I try to gaze into the crystal ball, I see all the bubbling
enthusiasm
of the; manufacturers
!'
j•...
who, from the springboard of large ,
order
backlogs, feel
certain that

honest work won't cure.
with the world's highest
standard of living, by following the line of less work and
more pay for reduced production.
All that America needs to do it to stop griping and go
to work and produce so that the floodgates may open and
fill our markets with goods. Only then will the working
?of free competition and the law of supply and demand
Jcheck the inflationary spiral, restore the purchasing
power of the wages of labor and capital, and bring stabil¬

•

do not

;

President, American

President, The Syracuse Trust Company.

country that buckling down to
America did not become great,

sign ourselves to a

•

■■CT*)*■■■

know What problems, we will be offering speed,:dependability, combe. It is imfort, and convenience, at the lowest practical cost to our
business of to plan intelligently oil ; passengers.
/
-77]\77*'' <:P'j

Industrial management todaj/' ^besii't
money is worth or what taxes are going to

possible to stabi ize a
such a basis of uncertainty.
Still another hidden shoal which threatens to wreck
the ship is the curious reluctance of the administration
to relinquish war controls and: emergency powers after
18 months of peace. We have been living in a state of
emergency by edict for the past 14 years! How can man¬
agement plan soundly when the whim of an unpredict¬
able administration- may change the rules at any minute?
Industrially speaking, there is nothing wrong with our

are br ght for a reasonably prosperous 1947
tie teir:t03ry served by the Northern Pacific Railway

Prospects

of labor
f

•

deficit.
t

—

large

segment of American industry to understand each other
and to go down the road to industrial peace together.
The business outlook is further clouded by the dangers
of inflation resulting from the New Deal's fiscal policies
of borrow, spend and waste, which continue to pile def¬
icit upon

V-77V'

competition.

the

made it

„

—J

reflected by national polls, overwhelmingly demahds
repeal of the closed-shop monopolies which have

by the Civil Aeronautics Board, American.A-rlines
m passenger fares or charges for passenger train services
..
—'a
1
believes jin competition and has thriyed On c L°—except the interim increase in express rates and charges
which became effective in December, 1946. Therefore,
Yet competition is like fire. A reasonable amount ^of
xrr\1int1v4r>
I foresee f/lfr*7 1 Q4.7 a ivolume '>v4? business i—JL. ± -u.il might *
for 1947
of
which
be
it keeps5 you %arm
too much
termed satisfactory but, because of the cost situation, a
Reasonable competition is in the public interest.
Too
necessary continuance of rigid control over expenses. *
mucn
duplication of service U very definitely against
the public interest and wilr requ-re the 'approval: of
C. E. DENNEY
V'
higher mail rates and, perhaps, higher pasfeenger fares
President; Northern Pacific Railway Company
and cargo rates.
"
J■-;>:' tpPPP

years

428)

(Continued from page

•

Tlmridaiy^aiiiiiii^ 23® 1947"

CHRONICLE

THE COMMERCIAL' & FINANCIAL

430

providing of rail

ceptable to the public. The wage
costs of materials and supplies of

It is reasonable to expect that 1947

Affiliated Cos.
will be

a year

good business, in spite of temporary setbacks
may delay the attainment Of full production and
bution. We look for a very real in'

very

crease

in the Use of consumer

which will contribute
national

prosperity.!

which
distri¬

credit,

Importantly to I
■

■

'.,0^

higher prices are
permitted to get. out of hand, serious
short-range damage can be done to
our economy but such a strong mar¬
ket demand for both goods' and
services exists that a period of high
If

strikes

and

nooriw

activity appears nearly in-

substantial increase in
Jt is permitted to function
form of-increased pay
^' G0 *S
roll taxes under the 'Grosser Bill. The Interstate- Com^
511 r1 on? ? ?
merce Commission hds granted Some relief! in the;form?
lower-interne brackets to satisfy
of increased freight rates which became effective Jan. - their needs fof new products as thesO
become
f 1947, but the Atlantic Coast Line is one Of those rail-' 5
We began 1947 with a further
the cost of doing business in the

roads which derive a

total

revenues

substantially greater proportion

from passenger

train operations than 1

While the cost of passenger; train^'operations
has increased in exactly the same measure as the cost
average.

freight train operations, there

has been no. increase

'ItESIBiSir.

- r

At present, the terms of instaUment financing/continue
(Continued-on page 43217 .^^
7r h5 r ' e-

yoi^tee4562
II' '"Mil" I

-"Ml.

■

COMMERGiAL

THE

'»||.|. ||.IWIW<||||»'

& FINANCIAL CHRONICLE

CV'" "■)M'■'''»

""I

linnmmmmmrnm

111

claims

Formula for Prosperity

(Continued from

page

391)

the

blacksmith

shop of the horse
buggy stage of little business.
An automobile that millions of
people can afford to buy can be
produced only in the great plants
?ind
integrated
organization
of
mass production.
Business

gets big because the
market gets big. And the market
grows when prices are cut, goods

improved in quality, jobs are

are

created and millions of

consumers

by reason-of

increasing

productivity
of
Government records show

labor.

and

competition and

that

from

1840

rates

wage

1930

hourly
while

seven-fold

rose

which
ment

application of power and ma¬
chinery to productive processes,
the organization of the mass pro¬

whole

wages.

caution

Inequitable Distribution of
Wage Increases

the

pro¬

That is sound economics in this

while prices were held steady or
decreased sharply, have been pro¬

vided

The income

the

highly

buy the products of

organized

mass

duction industries.

home of

production and low
prices. I repeat here this principle
of

mass

business

sound

because

Fallacy of New Wage Doctrine
The new-fangled fallacy is the
headlined argument that waees
;

increased

can

out

profits
without increasing prices.
That
argument is the specious pleading
of

CIO economist.

dp to the headlines
for

another

ifi

The

automobile

was

the

Great

world-recognized

hps become
symbol

not

the school teacher

siren

what

has

automobile

and

tries ' increased

allied

greatly,

indus¬

this

the

who

Think

of the

declining
-

live off

stationary,

incomes

rents and other fixed

fixed: incomes.

proprietor,

gotten

tute the bulk of the

mass

notv the !• members

CIO

gaining table will be fooled by

with

their

formula

for

prosperity under the handicap of
current union doctrine that wages
comes

government

Prices

pensioners

employees

collar

sales

millions

dustries

holds
of

assurance

the strongest
prolonged high

out
a

level of employment and business
when wages, prices and
profits
have found the
proper balanco
for

lasting prosperity. It is essen¬
tial, therefore, to keep the mount-s
ing wage-price spiral/from de¬
stroying time-proven formulas for

prosperity,
You

have

heard

statisticians

the unfilled demand for

office

workers

income ladder.
The

product like
set

and

reaction

labor

in motion

lions of

industrial

over-pricing

consti¬

union

Again the pent-up demand In1
automotive and building in-*

automobiles, for hdusihg and other ;
items in; short supply.' The * estimates
of pent-up
demand
for
of
automobiles run into many mil¬

teachers,

miners, doctors, pensioners, white-

market,

—

and

of a

popular

depressing chain

business.

people

can

for

their

the

;

customers.

automobile

•

will

$1,000

find

When

mil¬

products

drop*

the

And

market.

until the market

price rises high fenough.
Business has been created, and

profits made, in this

and

(Continued

country

page 433)

$1,000 now .carries a
price tag of $1,500 or more. Auto¬
mobile
producers
say
another

vre

tiations.
'

Profit and loss is the final
sult

•else

business

has

been

salaries, taxes, costs of

wages,

re¬

after everything
taken care of-

materials, rent, interest and

raw

so on.

fairly good business years, a
large
percentage
of businesses
make no profits. In poor business
years, losses are the rule.

The facts of business profits and
have
been
set
forth
at

losses

length by the National Chamber
in an analysis of the wages-out<qf-profits mirage*; What I want to
•emphasize here is the threat the
mounting wage-price spiral raises
to the low-price, mass-market in¬

dustries.

low

once

The

fallacy

in these

prosperity

Annourwing

higher

wages
out of profits was pro¬
pounded with particular reference

to the motor

industry.

You

men

the Great Lakes region know

A Free Advisory Service

little

how

profit there - is in an
industry hit as hard by strikes
and material shortages as the mo¬
tor industry was hit last year.
Meanwhile, with the rise of wages
and
other production costs, the
price of cars has gone up. The
formula
of this

for

continued

For Business Executives

expansion

industry is endangered.

Statistical Mirage of National

danger

sold

round of wage increases will mean
still another round of price in¬
creases.

Income

;real

that
higher prices forced by., higher
wages for union labor will reduce
the market for mass production
industries and upset the classic
a

formula, for

that

There : is

The automobile
as

Another

HE RAPID increase of

statistical-mirage,

can

be blown ^outMl^ggregate figures
national income. Some say that
national income has doubled over
on

far-seeing business executives

able to sell as many cars ak bef ore

reducing prices, increasing sales,
multiplying jobs, raising .wages

at double

•out of
4

production gains and dis¬

tributing more and better goods
more and more people.

to
i

That is the concept of

mass pro*;

-duction, and big business, which
lias made the American standard

of living the highest standard of

^ving Anywhere' and • theA Ainetir'
can

^prtorjthe: best paid worker:,

jt'is the^imula that can be used
ior a further rise in living stand¬
ards and for

prosperity, unless labor is
tpoled by the myth of wages out

of profits and insists upon

exact¬
ing the last possible penny through

Its bargaining power, regardless
•of what happens to the market for

the products of industry*
$>e increased without
vrill

not

alter the

can

hard

recover

facts

costs;

'Arid

its costs or

•die in the throes of bankruptcy.

'As

sure as higher costs lead to
"higher prices, so does a rising
wage, scale without corresponding
^ains in production bring higher

ing prices merely because aggre¬
gate corporate profits are above

Business

prewar levels. ' NatioiraP1;income
Is he more a common ? pool of iri^

than

come

profits

aggregate

;

the

States through the natural forces

assist

management

are

common

profits;; but 'of which
creates ban

•

and

From. 1939 to September^ 194?»
hourly rate in manu¬

facturing industry, ^ according to
the Bureau of Labor Statistics,
cents.
sumer

from

rise

cents to

marketing;

From 1939 to VJ-Day, cori*
rose by 30% while

present your

cost • tof:

in handling such

problems

our

only in the

matter

of plant

^v!"'..

our

Business Development Department and

problem.

Long Island has

They will be glad

to;

answer

; ^

for this service

nor

offer

your

is there

any

business.

obligation

There is
on your

your

what

charge

part.

rates '-was -Almost
••

.as

relo¬

technical problems of production

Just write

•twice

place for starting

specific inquiries and supply complete information

$1.12

-prices

in, wage

many

the Nassau-Suffolk

the average

increased

Development and Research Departments will be glad

.pool; of

-\yaie .:in>

be ladled like * water

from a'bucket.

furnish expert guidance not

location but also in the

Corporate-

uiast as

the rise

the

living index;; Since theft,

'*i?V

' A-

Address: Business Development Manager

prices have risen relatively faster,
to correct the

distortion

tions* Wween

wagea

artificial OPAJ repres¬

sion of prices.
On

of rela¬

arid prices

balance, industrial ;labor is

last .century Wages 0 winner r in terms - of . buying
Increased in1 the United power in the market. If organized

Over

the argument that wages

has led

decepT;

be increased without iricreas-;

during the
Higher Wages Conie from
w/C; ; Expanding Markets
have

as a

prime consideration

area

give

war,

cating their plant operations.

;

can

hourly factory rates rose by 58%;
according to the1 ;Debartment of
raising prices Labor.
During this - period, iM

' Wages: are

mature.

lbuslness must

tive

enduring period

df -c

the prices.

.That delusion

County

figures and therefore "the
iiidustiy should be

prewar

automobile

industries.. That is the formula of

light and precision industries

Long Island, both during and since the

labor

were

the

whole ' market,

goes

disappears if the

tion, regardless of what happens

when- specific companies
involved in wage-hour nego¬

$2,000 many more will drop out

to prices and the market for goods.

ingless

ar*

many

buyers. " At $1,500 the number of

afford to buy

automobile, other millions find

markets

cars.

But there is a big IF in such
estimates. That "IF" is the price
in relation to the buying power

prospective buyers Will

automobile could

lions of

for re-negotia¬

statistical mirage conjured out of
overall figures which are mean¬

the

count up

Markets

workers, farmers, school

those

the small business

the

unions, & Altogether,

•should^^lncr^ias^iev^.
contract

salaried and profes¬

sional people,

more
sales, more
goods for more people.

people
millions of automobiles
coming off the assembly lines to
be bought by millions of
factory

workers—the

fallacies. A question to ponder in
retrospect • is how far these mass
production industries would have

the

few people oh the top rungs of the

unorganized

published writings
pleader for higher
Wages out of profits indicate he
might have turned out that brief
for his employer with tongue-inthe-cheek skepticism.
Nor do I
believe that' experienced union
Readers around the collective bar¬

Previously

time, to resist the
of

relatively

farmers and

wage-

prices,

millions

duction and to raise _the: belliger¬
ent banners of the new economic

wage

rapidly rising

the

Effect

pensions, insurance,

trend.

The

out

America has prospered on large
scale- production and sales

bers.

the firm earth of lower costs,

jobs,

mass

sales and small profit per unit of
sales. The real wages of workers

labor

acceptance

painful the drop.

music

lower

happened to

Until recently there ' were no
monopoly unions to tie up prd-

served

"screen

in relation

in j the endless ramifica¬

tion of supply growing
motor manufacturing;

the

.wage-price
merry-go-round and to get back

the; wages and the buying
power of an automobile worker.
Think

on a

This

.Think of what has happened to
the income and the
buying power

in¬

round

creases.

the

kept step

of the the incomes of millions of unor¬
produc¬
ganized workers in relation to the
tion, operating on the principle of
lower costs, lower prices, more incomes of industrial union mem¬
remarkable feats of

fallacy.

new

here

Lakes region.

being challenged by the clamor of

right

management r and

against

A ride

of the bulk of

has

consumers

^ ->

price spiral is a sure ride to a
spill. The higher the spiral goes,

able

•

bootstrap thesis of prosperity.

any

with the increase in the
wages of
the better paid industrial workers.

duction industries. The most spec¬
tacular exhibits of rising wages,

are

alike

market?

rious.

'Activity in the automotive and
building industries ; largely • con-•
•' -•;■^ •• tributed to business
prosperity iri
I doubt it.; More than
that, I the 'twenties.
;
;

you have

f Today that formula for boot¬
strap lifting in the mass produc¬
transportation, tion industries is
manifestly spu^

the

or more.

do to increase the market for
goods "is to increase' industrial

expanding markets, the

improvement

services

of 60,Can business be

by tieing prices to the
union segment, rather than to
the

accompanied the develop¬
of

15,000,000^ members

total labor force

prosperous

the rising wage trend

was

some

000,000

bootstrap thesis that all

prices increased only about 20%.
This

...

out of

there might be some point in the

■

431

ajmrnrnimimmrnim

Long Island Lighting Company
250 Old Couhtry Road, Mineola, Np Y#

by
>

gjS'iS

'm*

»*
•

y*&

Speaks Alter the Turn oi the Year

Business and Finance
become

through Regulation. W. of the
Federal Reserve Board; The terms established make it
exceedingly difficult for the average
to be¬
come a time purchaser; while a cash purchase is out of

World War I period in England and

Moreover, if we continue to insist on a foreign eco¬
which is restrictive and isolationist r— if
we do not set ourselves to the task of lowering our pres¬
ently prohibitive tariffs and of withdrawing many of
the subsidies which noW make it difficult, if not im¬
possible, for foreign nations to earn dollars, we will be
repeating the. tragic errors of the twenties,
No amount of credit extended to nationals of other
countries or to foreign: governments can sustain foreign

nomic policy

trade for a protracted periods unless oitr policy permits
inl<„n
rtn.mv.n_
the repayment: of +U~ loans. ixru~4- a person A*. govern¬
the
What „
or
ment buys from us, he or it must be allowed to repay.
No array of paper tricks, no mechanism of pure cur¬
rency or monetary manipulation, can for long support a
foreign trade which rests on the incongruous partnership
of foreign loans on the one hand and an isolationist
trade policy on: the other.
>
If we persist in high tariffs, we shall, I fear, after a
lapse of time, defeat, as we did after World War I, the
processes that would otherwise operate to produce a
sustained world recovery, and produce the same general
sort of collapse that we experienced in the late twenties.
If we are successful in pushing further forward toward
our goal of establishing a lasting peace, and if we will
only permit the powerful forces of economic prosperity
to play their part, we may be entering one of the most
prosperous periods of modern times.

demands that we take a long-range view of the
+Vmt
Tiqo
maflrofl its Viist.rtrir
cinpp
fnP
steady progress that has marked its history since the
tirst heavier-than-air ship lifted it¬

year

nrnffroce

self .off
As

the ground.

tivity that attempts to apply scien¬
tific principles to social needs, that
rising curve of progress has had its
occasional dips of failure or disap¬

pointment.
But these have served
more to
emphasize the speed and
certainty of future development than
to retard or becloud it with doubt.
In gauging the rate of aviation
progress, it is easy to swing back
and forth on the pendulum of opin¬
ion from one extreme of optimism
to another of pessimism.
Extrava¬
gant
attitudes, however, are not
Donald W. Douglas
justifiable in the long-range view.
I have implicit faith in the future
of aviation. I am confident that the minor difficulties
and irritations resulting from the rapid world-wide
:

■

Jpvjr

are

in the perfection of aircraft. To develop
he# DC^6 transport,^we absorbed an experimental

the
cost

As production continues,

and a solid

end: Of

(high r rate of productivity and industrial peace
paramount in making 1947 a prosperous year,

create! lower,

free,
market.Management
functions by the formula of money
and men and should intergrade to

farms, factories, and of the in¬
effort
of
the American

dividual

the

common

good

denominator

for

necessary

tivity for the full benefit of the consumer public upon
existence of management and labor
Harry Edison

1947 must bring peace

highest

time production to the

work in

political climate, set
Lewis Wt Douglas
the stage for a prolonged period of
full prosperity
broken by only
short intervals of adjustment.
The danger,however, is that we: may not create an
environment in which these factors may fulfill the
promise they hold outv
'

employment to all
high earning .wage. Such will
add greater purchasing power to an already large back¬
log of savings in the hands of the consuming public eager
to buy the many necessities not available in the past.
/
Industry and business generally is now taking on huge
amounts of added capital for tremendous expansion fa¬
cilities. Many billions of dollars will be spent in this

Ji;foi^example, when thefirst interval of adjustment
.comes, the system,has become so inflexible
costs have

direction and will give steady employment to i many
thousands, of workers for^.a long period of time. Farm

if allowed
economic

favorable

and

pos¬

sible level. This will assure full time
who desire to work at a
<

•

cir¬

•

completed in 1947. The next link, between Pittsburgh
and Chicago via Cleveland, Detroit and Cincinati, is
scheduled for completion by the end of 1947.
'

new

carrier telegraph system also will

in addition to the more than 200,000
miles of carrier channels already in operation. Carrier

be installed in 1947,

superimposes a number of different fre¬
quencies on a single pair of wires. This makes it possible
to obtain as many as 36 independent telegraph circuits,
capable of carrying 288 messages simultaneously, over:
^single pair of wires.: j
"Reperforator switching systems which eliminate man-,
ual retransmission and greatly speed telegraph service,
are being installed at major relay points.
Merely by
touching buttons telegrams are automatically switched
through to destination, making it unnecessary to mami-;
ally retransmit them at relay centers. • In addition to
the systems already installed at Richmond, Atlanta,- St.
Louis, Dallas apd Oakland, Cal., reperforator units will
equipment

by Western Union engineers, will
Telefax can best be described as

rests.

year

be placed in operation at Philadelphia and Cincinnati
early in 1947 and will be followed immediately by others
to complete the nationwide network.
The use of Telefax, the fascimile telegraph developed

produc¬

factors, among others,

All of these

channels

both. This will establish the common

;The

people.

for

produce

A number

competitive

the ordinary
peaceful -living,-

demand for the products of

«-«•

President, Edison Brothers Stores, Inc.

to function from here on in a

for

number

send over 2,000 telegrams
in both directions, simultaneously over a single system.
J
._,i
•
._
Since atmospheric static is not felt in the microwave
region, radio beam transmission is unaffected by elec¬
trical disturbances. It will eliminate service interrup¬
tions due to ice, high winds and falling trees. In addi¬
tion to affording the ultimate in service continuity, in¬
stallation and maintenance of a beam system costs less
than maintenance of the familiar pole line.
A beam system has been in experimental use between
New York and Philadelphia since Feb. 1, 1945.
Con¬
struction of the first leg of the radio beam network,
between New York, Pittsburgh and Washington, will be

;

4-V. .iWtW

regained most of its freedom, it must
now rely upon its own management

the

available for the handling of telegraph traf¬

an^|future^ Through^ application of carrier system to the

definitely
prices for consumer goods generally
and
decidedly more beneficial to
labor.itself tthan new: demands for
higher wages. With business having

now

telegraph centers. The

fic, and provide amply for the telegraph growth of the

opera-

artificial price controls li^as been: beneficial.

^eso ttwo«ihxndam

Housing facilities are insufficient.
The aftermath of war promises large
our

their

expand

that at proper price levels provide

overseas

Some reductiqji 4n s^ep

signals in a narrow beam, and
eventually eliminate the need
pole lines and hun¬

network will furnish a vast increase

cuits

HARRY EDISON

factors which, if permitted to operate
should produce a long period
economic activity. The ravages of war have

Joseph L. Egan

should be
good one for the livestock and meat industry."

„

i There are many

demand

major cities in the
employ high
30 to 50 miles apart
It will

dreds of thousands of miles of wire

Viewed in its broad aspects the coming year

in a favorable environment,

large

towers

between main

packing industry have resulted in contracts which
promisb continuity of operations during the year. Ma¬
terials and machines for maintenance and improvements
are not as difficult, to obtain as during the war and the

President, The Mutual Life Insurance Company of N; Y.

commodities

will

in the

LEWIS W. DOUGLAS

the

States.

for the familiar

lective bargaining agents for the bulk of the employees

in aviation can only be based on sound, steady
constructive accomplishment.

radio

by an

feeders

tions.

Eastwood

achievements, are more than ever necessary today. True

deficiency of

offset

the
the
meat supply in the aggregate, a per capita supply of
151 pounds is predicted against the 1946 figure of 145
pounds for civilian use.
^ |
Negotiations with the labor unions which act as col¬

national assets in both

capital of huge-proportions.-,, -* In the United, States there still remains a substantial pool of hereto¬
fore
unsatisfied, wartime, savings

connect

United

doubtless

the year ahead but in terms of'total 'meat supply,
volume of mutton and lamb is not large. Considering

progress

created a world-wide

wave

tle
Geo.

and war. The manufacturer and also the airline
operator, in this connection, need the encouragement
and support of the government for a five-year program
of technical development which, shall include, improve¬
ment in commercial airline operation as well as in
military construction. All these factors point to 1947
as an unusually active year in aviation.
I feel, therefore,, that a realistic, approach and intelli¬
gent evaluation'.of.problems,: difficulties, advantages and

of healthy

| A radio beam network is planned

vested in 1946 have encouraged cat¬

peace

and

Important new devel¬
opments, which had to be held in
abeyance or which had only limited
use during the war, are now being
placed in wide use to increase the
speed, capacity and reliability of
telegraph service.

profit mar¬

increase in beef
coming to market1 from corn belt
feedlots. The huge feed crops har¬

airline services.
are

which is
in spite of the continued shortage

of materials.

industry is

will

1947

mechanization program

with antennas to transmit the micro¬

than

airlines

well under way

a.;v'

plans to proceed vigorously in

nation-wide

sponding period of last year, reflect¬
ing a decrease of 11% in the crop of
during the past fall.
However this decrease will be more

costs will decline to the point where
a profit is realized on each airplane.
At Douglas, we
feel we can best serve the long-range interests and show
our confidence in the future by developing and making
available to the airlines aircraft with the highest stand¬
ards of performance, efficiency and economy of opera¬
tion.
t^5'rt't.:'
Even at the height of the reconversion period, aviation
has not stood, still. Great strides have been taken in
new procedures, navigation facilities, better airports and

its

pigs farrowed

it is expected that

j Furthemore, a strong aircraft industry

Union

Western

be somewhat less than in the corre¬

million in 1946, plus more than $4 million on man¬
ufacturing losses on the six DC-6s delivered toward
the end of the fiscal year on Nov. 30.
These losses on early deliveries of a model arise regu¬

establishment

months

summer

in the making, become an ac¬
striving for it, for only in

now

JOSEPH L.EGAN

prime essentials in a mass pro¬

and

now

President, The Western Union Telegraph Company

gins are small and where the perish¬
ability of the product calls for speed
in selling.
ir
Pork production during the spring

of $5

larly in the aircraft industry.

which is

world of peace can we all endure and our own demo¬
cratic way of life survive.

with

duction industry where

good because an* increase in volume is predicted and
continued strong consumer demand is expected. These

the losses we are willing

incur

and peace,

tuality for all nations

now

people everywhere have faith in aviation. Confidence
and support will grow stronger as service and perform¬
ance improve.

up,

management, and decidedly costly to all our people. I
do feel we shall not experience such a set back; that
1947 will find industrial peace on our own home front,

! President, Armour and Company

expansion of air travel at home and abroad are being
and eliminated. The problems are known, the
remedies have been applied or are available. Basically,

artificial price

any

•
x • i j _ _/•
a
.. ■...
»
in other fields of production for

of this adds

All

GEORGE A. EASTWOOD

solved

create

commodities

'
■
consumer needs.
I see it, in building healthy
economy for our own people for the year ahead. Only
by reason of a second wave of wage demands and un¬
justified strikes will we be thrown in reverse, and if
this occurs, it will be most destructive both to labor and

essary

The 1947 outlook of the livestock and meat

to not

and values. What' holds good in shoes is, likewise, nec-

happens with any human ac¬

Our faith is demostrated in

that characterized

1934rl940 experience. That is, we may have, as
had in the twenties and as we had in the
thirties, a substantial body of permanently unemployed,
with its accompanying economic ills.
England

prospects for the new

controlled

that a proper balance
between supply and demand shall prevail, consumer
prices for our own people will continue to be stabilized
in a healthy manner. This is
indeed most,, essential
for the control of our hide prices in order that tanners
may be able to lower leather prices to shoe manufactur¬
ers, in keeping with the demands of our consumer pub¬
lic who have already shown a.definite resistance to high
price footwear. Production of shoes has expanded ma¬
terially in the last half of 1946 and will likely well ex-*
ceed five hundred million pairs for 1946. With increased
production of shoes already evidenced at an accelerated
pace, the increased output will continue to lower retail
shoe prices to a necessary stabilized level, and the law
of supply and demand will from here on control priced

our own

DONALD W. DOUGLAS

•

boosts on. our own

overly-high initial paykents and overly-high installments must be eliminated
if consumer credit is to be broadly available and massmarketing plans are to be realized in 1947.
Unless Regulation W is ended, the buying public will
be unable to absorb the expected output of automobiles
in 1947 because terms of installment sales are fixed
above the capacity to pay of the mass market.

President, Douglas Aircraft Company, Inc.

farmers

costs to lower

The requirement for

A realistic estimate of aviation

prices will continue at a. high level during 1947, insuring
a healthy Income, and if our export market will

so rigidly high — that it is impossible for many
manufacturers, farmers, and others to accomodate their
price levels, then we may well experience
the sort of frustrated recovery that marked the post

(Continued from page 430)
tinder wartime restrictions,

his reach;

Mursday, January 23, 1947

FlNANClMCi^

^THECOMMERCIAL &

432

be extended in 1947.

fully automatic "pic¬
ture" transmission.
A drawing, picture, telegram orwhat-have-you can be dropped in a slot in a machine
which automatically scans and thereby transmits directly

to the receiving
a

machine. This is accomplished through
that views the picture or message
revolving cylinder. A similar cylinder

moving electric eye
it turns on a

equipped with electro-sensitive recordm<? "ymer
receiving machine records a true reproduction.

operation already is used

Telefax

in the

to transmit tele¬

grams from many customers' offices and branch tele¬
graph offices to main telegraph offices. In the future,
-. ■

•

'■

Vv.(Continued on page 434) • v

^Volume

165

wage increases.
TjiefeTfeems to
be an uneasy conscienceUiehind

Formula for Prosperity

(Continued from
f

43i)

page

«"*./

■'

/'p

Jobs to the proyen developr

-more
I
.

ment

She

■\-ft

the

mass

*llr

market.

l\/l

OKIMan-

and deeper into
^
°Xincome- Many agement alone cannot make that

here

win

When

vorn^emh^i the tears formula work if organized labor

not btiy

radio set for
$250

*fipld^
also
will

recall

you

can

similar experi¬
experiproducts turned

—

ences with other

but by

g00d

manufacturing industry.

Wealth

Shared

ards.

the

productivity.

living stand¬
ride to pros¬

sure

formula

large production

American ^ way^r bf

wealth is by

tainly the mounting

wage-price

spiral cannot go forever without

reducing the size hi the
I ket.
Kt'i.

mass mar¬

me school
The etuuui teacher, the white
vtawivii,
—-

recent

decades,

this country in
large
been the reward to

this profit mirage,

niotg a. nn. dosing
race

.al ways, Tn, the
between wages and prices.

Millions

driven

without

out

of
of

people
the

cannot

mass

destroying jobs

market
on

the

JTKe

concede

joy ride

the

the balance sheet

man

Also, the

•

wizards
recofiomics
unhappy ending to a

4iew

the wage-price spiral;
Nevertheless, they are beating the
drums for higher wages.
They
don't want to

production lines.

be blamed for the

the

and

street knows

in the street wants *

man

automobile. And when he can't

get one; he will do

thinking

some

and figuring about
:'.V*

'J;"•

t'r/'i

Importance of Mass Markets

prosperity will con¬
tinue
to depend
upon
business
thinking in terms of the millions,

the

false-hued

rainbow

...

spun

pvpr

nrice

increases

hew

doctrine. Two and two still make

(Continued

435)

on page

have

enterprise for

reducing costs ■; and
prices,% ' and
raising real. wages,, through the
improvement <?f productive.
proc¬

esses." This
improvement has been

achieved
tion of

;

and power and

'e user

by efficient organization of man¬
agement, technical skill and labor.
The

master

works

this

...

other production

the

wealth

centers.

created

or¬

ganization can be seen in the in¬
dustrial centers around the
Great
Lakes
Milwaukee
Detroit
^
Cleveland
Chicago and

•;£-):

mainly by the applica¬

machinery

tfNati

this

industrial genius, the
country and

the world have shared
immeasur¬
The principal medium of
this distribution of
goods for the

■1

ably.

general-

price.

welfare

The

been

goods

has

opened
market.
-

constantly widening
This

the

lowering of prices for

manufactured
a

has

process

-sharing : the
wealth must continue.
Over-in¬
flated wages and prices are
poor
foundations for a mass market.
.Organized

labor

can

price

This famous

packing house is an excellent example of {
of important concerns using National Account- :
ing-Bookkeeping Machines made by The National Cash 7
Register Company.
the type

itself

out of the

market, by pushing its
monopoly advantage -too
hard,
just as the business
map can price
himself out of the market
by rais¬
ing his prices too high. •' \
-

An important fact must
be
sidered in

National
Payroll Machines are- used at many of the |
large Swift Sc" Company units.for ,handling its^ payroll'
records.
They produce at one operation: employee's pay7 r
check, employee's statement of earnings and deauctioris,
employee's earnings record, payroll summaiy record.
•
"'r

con¬

judging the effects

fhe

wage-price
the

This fact
location of the

strategic

Industrial

] -The

spiral.

industry-wide unions
to mass production.-

Unions

the

ensuing

price

affected

the

of National

and

increases

last

Winter

increases

and

initially

tribution and

Whatever the
;ou

receivable in tlieir branch houses

will find

nature or

one,

the size of

your own

Offices in

business";

more^7apf7thc vraany" National

Accounting Systems expressly suited to your
National Casn Register
Company, Dayton

production in¬
steel, elec¬
trical
equipment, 'coal.
Higher
prices for steel, copper, coal
inT
;fluence the. price of automobiles
as
certainly as do higher wages on

accounts

principal cities.

J 7^

/'•;

factor to consider in
ap¬
the outlook for further

new

.broadening: of

the

.through

costs

lower

mass-market

and

Making business easier

prices.

.1 repeat that the soundest
wage
-increases are the
wage -increases
"which come from

:5 for the A meriean business nian. 9-!i-

increasing pro7? '.ductiyityv -r;:
-

•

An expanding mass-market
built on a

jfiOt." be

.'more
ron a

less work

and

neu¬

union policy of
slugging bus-

time wages,
<

can-

philosophy of

pay for

-iness;with the1.,strike-'cl'ub

■

.every■

are up fot discussion I"
insisting upon continual* jack-;

ring': up of-

pay*

ratesj tegardless

j -'what happens -to

the

consumers.

"
-

;;

;

Must Supply a 'Fbritiula
;
if for Lower Prices

: ' .Union*
:

•.

use. The Oi
9, Ohio. >;

/in the highly integrated industries

praising

•

The growth of industrial unions

,is-

throughout the United States and Canada.

mass

the automobile
assembly lines
in the plants of parts
suppliers.

Accounting Machines ron Other applications 7a sa
Among these will hc;found -sales dis-;

in their business.

dustries—automobiles,

are* f

proved correct at time of wriK
irig, thus obviating discrepanciesdue tjp; human error. - J
Swift 8c
Company is also a large user of other types -

have
larger
supply indus¬
It is pertinent tbl observe

strongest' in

Payroll Machines produce ^tries that

clear and .legible, and are

tries.
here that the
wages-out-of-profits
doctrine was publicized in con¬
nection with
impending CIO wage
demands in the steel, automotive
and ^electrical
equipment - indus¬
tries. v The round of strikes and
wage

National

industrial^ unions

grown

manufacturing

relation
;

*cept
;

leadership* now' miist

with

ac-

management 'the' 'rq-

sppnsibility•: for applying; the for¬
mula of

lower prices,

sales,

;

Industrial

profits, in

measure

it. f

higher prices
or for the un¬
happy ending -to the joy ride. So
instead of the few. This is
the^
out of the fallacious doctrine that they havA concocted this doctrine
of lifting wage increases out of hard-headed business of giving;
industrial wages should go up and
profits—profits which don't exist more for less, of taking less profit
up, in a lone flight to the strato¬
at all for many companies facing per unit in order to sell more in
sphere of ; everlasting prosperity.
the aggregate. That is the kind of
wage demands.
I suspect the
fallacy of wagesThis time "the public is wiser. business which has made America
out-of-profits was tossed* into the
People will not be so easily fooled what it is today. :)'}''•/ ' 7'
public arena' for the purpose of by the juggling of figures.and the
7-That is .the: kind of business
trying to shift the blame for what- spouting of spurious economic which created the
jobs from which
Disillusionment lies at the end

What happens this year will
show how well we can apply the

reducing I cottar worker, the
pensioner, caii?
(^.v_v";;'.

prices.

and

perity;^ The

faring the
.

soundest'way

wages

That is

under the new circumstances. Cer¬

Reducing Prices
is

indefinitely,
indefinitely, regardless of
the relation of higher wages to
scale

old

That
raising

insists upon elevating the wage
cppIp-

four

J, National payroll Machines in ■ Swift $ 'Cp*:

After the Turn of the Tear

Business and Finance Speaks
tL,

(Continued from page 432)

Telefax machines will- be placed jin hotel
road stations,

New

office building lobbies, airline terminals

The banks of the country ar&

; -j.

; l, '

•

portant/ contributing; factors in shaping the Katy's fair
weuth
contributing; factors. in shaping the Katy's fat*
Tir..;*,reaching plans for'/jpbacOtim# progress;WithrrerieWecf rianciallyjSOumd;^"M;®^^:i-S.^:v ;cbhfidehcej>the/Khtylhas: sih
i

When the;
,

FDICt la^vfe;«eha£ted <■»

fiwe;; h^apptfbximStelyAt##3k4frou- / YpFbypments

.....

.,..

whiph fterideil tog build /larger/arid

that

capital

*cr60scci

presentserigef .trains /With: schedutest>fronft:St^^
; ppints;tb be cut a^mueh as bhe^thii^^ and planned install »
lation of two-way radio control in yard and train op-•
assets should V be in-

w. J. Field

i'"-.

erations.

'* ■
'
"v'' *
difficult to market

addi-..
tional stock, most banks look , to sur- .
plus earnings for this ^purpose..,,.,
As

■

it is

cially posted prices of platinum to
$90-$93 which applied for a. short
period during the latter% part of
September.
At that time weakness

■

HARVEY C. FRUEHAUF

Today expenses are at < an1 all-time

the/Ftuehhi^ Traill

in the motor

■m #•

ence as

inated

The

increasing use of palladium results from wider,
knowledge of the metal, and especially from recognition
of its merit and value both for adornments arid for in-,

the

electrical

Aj$AA

banks to retain some surplus

white color of lustrous palladium mir-.
flashing beauty of diamonds which are strongly
held.
Rings made of palladium are durable as the metal
has the strength and hardness to withstand wear.
The
lightness of palladium ia utilixed ih earrings which are:
with

comfort and also in brooches and other

jewelry of large size.gUsed imthb most expensive pieces,
palladium is also being employed in moderately priced
jewelry and recently has been introduced in the form of
palladium-filled costume jewelry and jewelry for men.
Chemical and pharmaceutical products, including vita¬
mins and hormones, are being synthesized with the aid
of palladium catalysts which enable safer processing at
used

improve

the

wearer.

■

in that

rapidly during 1946.
The hard alloys used for the polished points of writing
pens and for similar purposes utilize ruthenium to obtain
high resistance to wear and corrosion required to
smooth operation over a long period of service.

assure

Ruthenium is used also to harden palladium, especially
in jewelry alloys commonly made of about 5% ruthen¬
ium and 95% palladium.

Rhodium-plated jewelry and optical goods are reap¬
pearing in the consumer market/ and other rhodiumplated articles including safety razors are in production.
Such

of rhodium

prohibited during the war to
conserve rhodium for electro-plating mirrors of military
searchlights and for industrial and scientific purposes.
uses

were

Iridium demand in 1946 has largely paralleled the
platinum demand for jewelry where a 10% iridium and
90% platinuih alloy is in common use.
<
Osmium supplies continue so small that consumption
is confined to uses where the total requirements are
commensurate with supply.
Tiny and highly polished
points containing this precious metal are fused to the
record-player needles that seldom need to be changed.

The future outlook for

platinum metals is promising
industry looks forward to a period of satisfactory
business in markets throughout the world.
Progress in
establishing a free foreign exchange of stabilized curren¬
cies will facilitate trade in platinum metals and go far
in
minimizing speculative interest in these precious

and the

metals.

■w-

firms.

With

their greater need for commerce.

upon

inventories and

Manufacturing

plants are no longer concentrated at railroad terminals
but are to be found across the country, many of them at

points not served by any railroad but depending entirely
on motor transport.
v- :
.
'}
With better highways and modern vehicles, we can
couht on an incgeasdd vplumk^ motor^^ trahspprti jind
we of the Fruehauf organization
know that With the

quality of vehicles we

are.-bqlldiog, .we will obtaiq ah "
;

„•*/

the. country has seeh
devastating and crippling strikes and
work stoppages / whieh; h^ve /hamijered; ;produetioh/^nd
slowed down our reforiyersion/frqm/Warftto
M production||i^*'A,-^/ ■> -- 'A... ■, ^i
This whole problerh^ we feel, hmges upon repeal of
of

the

end

the

knowhfci

Wagner

the/

„

such
firms already located and in product!
tiph in the Southwest, and others; in /
contemplation,
together
with u xhe
industrial

early 1930's, because
this rapid transporta¬

which enables them to cut

A*, adequate share of this business.
It is to be hoped, however, that

interest
section of the country shown

by important and nationally

steadily, even during

operate far more economically with lower stockpiles.
The war further proved motor transport indispensable.
Plans for expansion of our highway systems are based

ihost encouraging fac-; ^
k

encouraging

Railroad Company

Southwest is the continuing

Demand for ruthenium increased

the

tion service

1946 when many

One of ^he

qualities of dental gold / alloys for full and partial den¬
tures that give better appearance, comfort and service
to the

The Fruehauf Trailer Co. grew

the days of depression during the
of the demand of business men for

tors in the industrial progress of the

are

the roads

diversity of products.

In dentistry, palladium
mechanical and fabricating

there

in the transportation field.
hour-to-hour and door-todoor deliveries and the decentralization of plants made
possible by the moving of materials and products over

hew permanent peacetime industries
were
projected fdr the manufacture of a

lower temperature and pressure.

that

ever-growing | importance

believe

The trend of the times favors

The picture of the future of the Southwest, and of the
Misspuri-rKansa$-Texas Lines which4 serve that ; areay is
encouraging. Postwar business and industry in the South¬
west has emerged from the wartime
'
*
period with a new economic com- m
plexipn, as indicated by the experi-. I
ence

Fruehauf

expanding national economy is going to require a cor¬
responding expansion in all forms of transportation.
For the past 25 years motor transport has assumed an

.DONALD V. FRASER

the

is all that is required to make our com¬
and the country as a whole, very prosperous in
the years ahead. As far as our own business, the manu¬
facture of truck-trailers, is concerned, we know that an

field,

In jewelry, the

irig all of the deliveries we shoul(|
made during the past year!
However, in spite of that fact, the
company
operated profitably with
a creditable sales volume.
The outlook for 1947 is good. We

pany,

also to enable
earnings to add to cap¬

President, Missouri-Kansas-Texas

steel and cer-

sire to produce

ital assets.

palladium is used for small
operate frequently over
long periods without failure.

worn

asses^entst:':^uld:>'be^elihi*'
to one billion

the fund amounted

fore the fund grows beyond control and
our

secure

tain

signs of a return to equity and jus¬
tice in labor relations. A spirit of cooperation and a de¬

sibly paying some of the surplus funds back to the banks.
Our new Congress should consider this situation be¬

electrical contacts required to

rors

Harvey

entering the fund are required to balance
contributions in relation to payments made by
members there will soon arise the question of pos¬

older

sales of

palladium to all consuming industries
amounted to 152,983 ounces.
This was distributed 40%
for electrical, 30% for jewelry, 18%
for dental and
medical, and the balance for chemical and miscellane¬
In

banks

new

their

-/gg/AA' '* ..vTvS-';

Why this fund should be increased over one billion
is a question difficult to decide within reason.
Even
without
additional
assessmentsthe ; earning
on the
fund increase the total capital annually and if

dustrial purposes. United States Bureau of Mines reports.

ous uses.

Fruehauf Trailer

successful year.

I have

dollars

for the first nine months of 1946 show that the United

States

long

and work stoppages

the

parts closed us down for 3^
/ months and prevented us from mak?

dollars.

;

*t.

1946,

Inability to
♦

amortized when all further

during

f Co. had

" / "
Today this fund is bver one billion dollars and is increasing at
rate x>f over one hundred million dollars
annually.
V'''A '
'
■/
\ The FDIC could readily reduce the annual assessments
one-half until the moneys advanced by the U. S. Treas¬
ury and the Federal Reserve System ($289,000,000) were

experienced.

important position in the
industry. Sales of palladium to 111 United States con¬
suming industries during 1946 are exepected to approxi¬
mate or exceed platinum sales.
Platinum and palladium,
are the two principal. metals
of the platinum group,
which also includes rhodium, ruthenium, iridium and

; ;>

terial shortages
%

<l^ing^bject^-:-W'-'t£ie .worst depression baiiks have; ever
■

In spite of the difficulties of ma¬

is shown by experi¬
its inception to
million dollars, and this aftesr

for

difficul-

be overcome.

ties—can

the total losses Of the FDIC from

date were only seventy-two

the horizon—labor

and
:

beyond, provided the one

and

1947

cloud

That this thought was conservative

•

industry;

transport field records a successful 1946
looks forward to" better times

During the first nine months of
1946, the United States sales of platinum to all consum¬
ing industries averaged 19,775 troy ounces monthly, in¬
cluding 12,734 ounces for jewelry and decorative uses,
according to United States Bureau of Mines reports. In
the same period United States imports averaged about
15,000 ounces monthly.

the

Surveying business,for the past year, the 31st in

history of

developed in the jewelry demand for*
gress, it was considered that a reserve or capital of five
platinum, which had been maintained J Stindred millions for^the^FPIC iyas^^anall^t^e high; a^
at high levels throughout the price
\ would take care of all losses ihat
3"be ereasbdabl^
rise, and the retail price of platinum
contemplated. /
;/'A'/!

subsequently declined to the current

„

A President^ Fruehauf Trailer Company

•'//'

high, while income is at an all-time low, and with the
present demand for increases in salaries and wages' every
item of unnecessary expense must be ^eliminated, r *:
.1
An outstanding and reasonable method : of ' reducing ■
expenses would be the reduction of the - cost, of FDIC
insuranCei When the FDIC law was passed by ;the- Con¬

Upon removal of price ceilings this
speculative trading forced the offi¬

gosmium.

larger deposits

order, made the market for platinum
vulnerable to speculative
trading.

Palladium has reached

•,prosperous,;.but

market freed of price control since April 29.
The heavy drain on supplies of
platinum during the war, when re¬
strictions applied to civilian use and
price
was
fixed
by
government

level.

•

units

6f streamlined/^tdtra^mbdbfh^pal^^^

Dur banks have J>eem £easop3ably** vtirevsy$tem;/purchase?

new

/bf/Ti^ght vrolKhg/#6Ck;*pl&c^
.rdutyidiesel^'freight; passenge# arid switching^

Asaferthstitutiririsgl^/gJ&.A^

•

The platinum metals industry is returning to normal •
conditions under the force of supply and. demand ppgrg
-

Charles Engelhard

„

...,,-v

.1 but/thefe^^m

CHARLES ENGELHARD

ahd modbrni^tioA of its fsiciUtie^ and ;e4ui]^
for both

pepi^ession.

Ating in

the benefit of ** increased freight rates; have become itr^
benefit of increased freight rates; have become im¬

undoubtedly ; in :l3etter

£pf greeting and other social purposes, is Jikewisel being
promoted.
!

President, Baker *& Co., Inc.

vast improvement of Tfexas port facilities v/Vi\'<"/i the wa
during
years and subsequently.
prospects'for the future Of the Southwest, along: with

Jersey

Edition:tjoday than in-many yea^,,after hay ng
1
many storms; and those:which^e&^

[ At the saipe time that it is improving its facilities and
"service, Western; Union inactively promoting the-u^cbf^
the telegram in the biminess field
record 'service Is invaluable.' The!use of the telegram

;.r'':

improvement of Texas port facilities during the war.

vast

WILLIAM J, FIELD

lobbies, rail¬

and other places where the public may transmit teler
grams quickly and conveniently'by * simply dropping
them into the slot of the machine.
..3 ;
...
;

Thursday,*.January 23, 1947

^FINANCIAL CHRONICLE

THE COMMERCIAL

many

Act.. Collective bargaining as it ^operates

development of small
an employer's plant iand hold; it for ransoms-power to
tries in large and small communities
enforce its demands through striked/picketing, viplencet
the entire economy of the Southwest
. ,
,
is undergoing an important' change/While agriculture • and threats.1 , .
.
(
,,
; ' . »
.^^
and livestock production remains in growing,; impoftance,.
Real bargaining
,
the; future prosperity of the Southwest must/be; meascept or reject;an off^r.
ured in ever-greater part by the inbreasing value of its
have today is an
manufactured products, of the products, of its. new - steel. -v01istic-ppwi?j^ in/the
rapid

mills, hew chemical plants, and processing plants of everbroadening variety, plus; the enornious flow of raw; ma-.
terials from its great oil fields, mineral deposits, etc.* Faonly ta
vorable climatic conditions, contributing not' nnlv ,to .
economies in plant operations, but to more pleasant living J
conditions, are another factor to be reckoned with in the
study of the overall possibilities of 'the .Southwest. ASouthwestern territory has definitely consolidated the
gains it made during the war and has not stopped, there.
During the first 11 months of 1946 there were 225 new
industries and expansions of plants located on the Katy
alone, involving an investment aggregating about $14,_

250,000.

Transportation facilities in the Southwest are of the
best. Both Eastern and Western markets and supplies are
easily reached from this area. Mexico and the South
American republics can be reached by land or through
the great Texas' Gulf ports. European, Asiatic and Pa¬
cific markets were also made more accessibleV^brough /

f
pitesupposes'that either
without fear of mjury.^What we
unfair, one-sided situation withoipnpp-r
hdnd$
our entire society. 7
~ - /A
,
.
.
vj
Ever since the begmnmg pLpur business^ we have opcrated on the- principle^that:the; customer, is tsoss, Actually, the employer is only the "middle man between his
allv thf> pmnlover is onlv the , middle man
>

employees und the real boss, who* is the customed. In
negotiating costs with labor and with suppliers, the
business man must keep in mind his customers' ability

and willingness to pay.
In the last 10 years labor

costs have been stepped up

farther and faster than the rest of our economy.
with labor being the basis of all costs, prices have
forced to the breaking point. ■

And,
been

not only for the trailer industry
American' business/is that we may be on the
of pricing i ourselves out of the market, both at
and abroad. Such a policy can only result in de¬

My chief concern,
but for all
verge

home

pression.
American

workmen

should/

realize that the surest

(Continued on page 436);*

.Volume 165

Number 4562

THE

COMMERCIAL & FINANCIAL CHRONICLE

Formula for Prosperity
(Continued from page 433)
the

unions

collect

their

been

Ghas. E.

Quincey & Co.
Sixty Years Old

new

set of

filling the headlines
notes
are

with the false
theories.' They

alluring

trying to tell us that the way
prosperity is through giving

less for
more, raising wages con¬
tinually and taking it all out of

profits—-regardless

of. whether

not there are
any profits.

time-tested

the

market.

mass

I propose

•

formula

think

that labor leadershin
terms of the mil¬

lions

of
consumers, rather than
in terms of the
thousands who
benefit at the expense of the mil¬
lions by price-lifting
wage boosts.

Unless labor leadership achieves
this breadth of
vision, the long
process of
broadening the market
for the products of
industry by
iQwering prices will be halted.
.

Only through some revolutionary
method of cutting costs, and in¬
creasing production, can wage in¬
be absorbed without rais¬
ing prices at the rate wages have
been hoisted the last few

creases

years.

should

trary, I
wage

not

that

argue

frozen.

wages
the con¬

sincere believer

increases, where'-wage in¬

creases

out: of

.come

production

gains.

consuming public eventu¬
pays
the bills for wages.

ally

Labor
this

leadership which- ignores
fact, or pretends to ignore
is short-sighted.
Ther

and

New

where the welfare of all, no less
than the interests of the union
the

mund

Exchange.
Chas. E. Quincey, founder of the
firm, which opened for business
on
Jan.
18, 1887 and has been

on the Stock Exchange ten
years earlier. Previously he had

1919,

The

partnership,

Frank McDermott With

James E; Orr,:Maurice A. Gilmsirtin, Jr., Robert Adams Love, Ed¬

Curb

ship:

When the firm began business thej
U. S. Government debt was $1,-

continued, by Maurice A. Gttmar*
tin, consists; of. Mr. Gilmartih,

York

known continuously by the same
it,
wa^e-price spiral has reached the point name, had acquired his member¬

man

?To dispel this illusion, I pro¬
pose
that labor
leadership join
business leadership in
applying

the

The

firm

pied pipers is

tox Edward

129,619,462. On December 31 last
Adamson R. McCanless was his
the national debt was $259,148,7
first partner.
:
765,985.
i '
Mr. Quincey retired from
the

Yet, I also believe that the pub¬
lic snould share in the gains of

But

Secretary

Stanton, Secretary of1 War under
Presidents Lincoln and Johnson.

January * 17 marked the 60th
Profit from this calibre
of busi¬
anniversary of the founding of the
ness
leadership is re-invested in
though th0; medium' of partnership: of chas;
Quincey &
the increase of
production
so
price redaction. I believe'.that; itis Cp.» 25 Broad Street, New York
that more jobs can be
created, wise economics for all concerned, City^Specialists In JJ. S,Govern*
pjrices cut and real
wages
in¬ labor, management and the con¬ rjaenfe securities :andi member?Vb£
creased.
the • New York Stock Exchange,
suming public.
dues.

435

Leonard,

Cashman.
The

•

firm

zations

and

••' >■,,r

is'

one

John
..',

Harrison & Schuliz

Harrison & Schultz, f. 64 Wall
Street, New York City, members

National

of the organi¬

United States Government and its

partment.
formerly

instrumentalities.

Jit

was

assembly line, must

Organized

labor

industries

the

recalled yesterday that

Janareli.

Mr.

with
■

McDermott

| O'Connell
•:

mass

will

gain
by thinking in terms of the mass
market, just as the men of indus¬
trial vision gained
by thinking in
terms of the millions. By forego¬
ing a little now, organized labor
will gain more later.
That

profits

is the

principle

which

made from mass pro¬
duction. That is the principle, too,
on which real wage gains can be
were

thieved

without

contracting

destroying the market.
Let

labor

wisely

and management act

this

principle,

never

Leadership

losing sight of the millions,. and
we

need not fear the future.

broader the

qnd the
we

market, the

will

see.

The

jobs

enduring prosperity

That is the brand of

must be

sound economics this Great Lakes

region

has

world.

It is the kind of economics

demonstrated

the country needs

;

the

earned

now.

With

business,

comes as a

with nations, true

result of many years

hewing to high standards

the

leadership

of preparation...

never

losing

bright vision of the future, while meeting the

problems of today,
This has been
and

iautk.
rt.

Jwtttyhobw "

<1 WORD OF

are

Coty policy from the beginning,

proud that it has

won

for

the

WARSIKO

respect of our business associates and the mil¬
lions of

erous

Dividends

women

who have used and loved

our

products.

Today, in the perfume and cosmetic industry,"
and in the world of fashion and
Eight years before this amusing advertisement appeared in
Harper's
Monthly, Procter & Gamble placed its first Ivory Soap advertisement

magazine of national circulation.

The decision

dividends—to
stockholders.

consistently
& Gamble

there is

name

with

gracious living,

prestige than Coty.

•

advertise Ivory Soap
nationally has paid generous
users, to the Company, to its
employees and
This policy, initiated 63
years
ago, and followed

Ivory

ever since, has won for Ivory and
many other Procter
products the leadership they now enjoy. "

The

history of Ivory furnishes conclusive evidence that the con¬
benefits through successful
advertising. Raw materials have
Wages have increased
80's, now equal or exceed
factory wages. Yet in spite of these increased costs, the housewife
can
buy a cake of. Ivory Soap today for practically the same
price
she paid 60 years ago!
...
v. i
sumer

doubled in price since Ivory was introduced.
ten-fold. Federal taxes, non-existent in the

PROCTER" & GAMBLE

Security

announce

be considered.
production

that Frank
McDermott has become associated
with the firm, in its trading de¬

to be identified
with dealings in securities of the

;

Association

Dealers, Inc.,

longest

INC.

was

and
•

gminimiLimmii

Alter the Tim

Business and Finance Speaks
(Continued from page 434)

;

government bureaus as possible and should pass as much

power back to home rule as possible.
It is my opinion that government, business, and the in¬
dividual will more and more turn back to the ideals of

[route to better pay is greater production and finer work[manship. These must come first and good-pay will in¬
evitably follow. Any substitute for "a good day's pay
for

thrift, economy, frugality and hard work.

work" is nothing but a delusion. I

honest day's

firmly believe that laboring men and their leaders are
jecoming aware of this fact and the sooner they do, the
sooner we will have a healthy prosperous situation in

GIANNINI

L. M.

President, Bank of America

Those of us who are in the motor transpor¬
value of this service to American
msiness and the American public. We are consequently

this country.

This is

tation field know the

iumism by greatly increasing

manufacturing and

our

but some mental reconversion is still

v "

needed—further readjustment to the
realities of everyday living; more

[service facilities. The year 1947 will find us better
than ever before not only to
Fruehauf truck-trailers but. to keep them

make more
in operation

equipped

way

comes

"•

•

passing of the

!! $2,000 income mark, at which point
$• the average family spends $4.45 for

are

^
'

in
in

1945
iy40

to 53%

this increased

of all families. Mf these percentages
^—i--1

bre: applied to the approximately 38

million families in America, you can

instantly the enormous increase
opportunity for magazine circu¬
result of .this change.
see

Walter D.Fuller

lation sales

as a

phase of. the

Growths in. population, -spectacular growth in
education, increase in available reading time,, increase in
labor-saving devices .in the home and? on the farm as
subject.

well

factory

in the

^hd^officb^alldiave added to the

[potential reading.public, v.
Ho

one

knows exactly Jitw

in
How¬

Advertising Bureau, estimates the

the; Magazine

expenditure for magazine advertising for 1946 at $380,-

000,000.

easy

very

under-estimate magazine

advertising volume and L think it. likely that the final
figure

may

even

The year 1947 will see an

higher.

greater volume.

even

will experience some further price

heating and ventilating ducts; architectural- trim and
fixtures; lightning rods and conductors; Windows, storm

deflations, but many pressing demands
That

producing

American

great

in such

....

;

'-mpbiles.and trupks, heavy machinery and tools; ;
,

expects

be cautious

at least, long range planning may

economy

until the

In some areas of the

business.

air; is cleared. Only the extreme optimist could
a clear go-ahead this year, nevertheless much

progress can

be made.

International trade hardly can be counted upon

strong¬

ly at this time. There are many houses to be put in
before there can be much economic

order

health abroad. Hap¬

these prob¬

Progress can be anticipated.

lems;

up:

This is a year for good old fashioned

hard work by

management, labor and government; for

sum

contemplation of facts; for courageous personal

sober

corporate planning; for cooperation by all elements
involved and consideration of mutual interests; for solid
and

faith

American way and

the

principles.

actual practice of its

Given these things, 1947 will be truly a pros¬

perous year.

■

...

v| The magazine publishing industry at the present time
supports

directly. and

entirely

Some two million persons are
our

some

250,000

GEORGE R. GIBBONS

persons.

partially dependent upon

Senior Vice-President, Aluminum

industry and the number of millions that benefit as
magazine activity runs into almost fantastic

result of

figures.

Phenomenal
war
as

in opening more

gearing

and

widely the channels of distribution and

nation to

our

high records of production

new

consumption.

Company of America

wartime demand and the resulting post¬

acceptance of aluminum have boosted it to a position
the second-ranking
metal peacetime industry, in
of

terms

|| The magazine industry will be a major factor in 1947

volume

produced.

W .W. GASSER

As I study

the economic curves of business and finance,
the pattern has been largely the same after each major
war.
It is my opinion that the future economic curve
will follow closely the same pattern
as

the

after World War I.

curve

After

War I

World

there

was

ended and for
the curve went
down pretty rapidly. The price level
never did
recover very much after
that, although business activity was
up and down for a few years.
The
secondary postwar depression started
about 10 or 11 years after the end of
the war and was probably the most
severe that ohr generation has wit¬
nessed. It is my opinion that we will
follow a very similar pattern.
years

two

I look for

for

the

after

another

Iron

consumer

goods, with

part of the year.

throughout the

Congress should insist

balanced budget, with a

sharp decline in government spending.
tax reductions.

Business needs

Congress should also eliminate

as many

and hopper cars are now in

others are under construction.

aluminum is at present
great as in the highest
year, and amounts to well

one

billion

pounds

per

tration indicated that 1946

ance.

Considerable amounts of

aluminum are being used for

irrigation pipe, and a large potential market
of the metal for cathodic protection of steel

lies in use
tanks, pipe

lines, and structures.

refrigerators will probably average

Gibbons

Civilian Production

production of new

Adminis¬
aluminum

much as was pro-

nation in 1938, it represents only about
two-thirds of the rated annual capacity which is now
duced by the

The lag was caused pri-

of
government-owned plants and readying these facilities
marily by reconversion problems incident to disposal
operation.

It is

of aluminum is going into such
pins, cigarette lighters,

clothesline wire, clothes

foil packing for

into

tubes, milk bottle caps,

drugs, foods, cigarettes, and

products.

GILBERT

outlook

Corporation

However,

index.

ness

for the

thousands

thousands of new cigar smok¬
ers
were
made
during the war.
Young men began to realize that
cigar smoking gave them much more
upon

year.

836 million pounds.

peacetime

models.
A sur¬

cigar industry for 1947, which
of course follows the patterns of all other businesses,
rises and falls with the general busi¬

While this is almost three times as

for

all-aluminum refrigerator car, designed
with the help of Alcoa engineers, is now making regular
runs and attracting much favorable attention.
The electrical manufacturing industry is consuming an
increasingly important tonnage of aluminum. Outstand¬
ing is the use of aluminum for electrical conductors,
particularly in the field of building wire, which is show¬
ing tremendous growth and meeting widespread acceptexperimental

The

approaching full production.
on

all-aluminum streamlined trains,
cars

S. T.

in the United States will total about

be good

new

President, DWG Cigar

new

A recent estimate by the

I think bank earnings will

number of

similar

independent, privately owned, and largely in¬
In
addition,
hundreds of manufacturers
throughout the country became fabricators of aluminum
products during and since the war.

year.

passenger cars, tank
railroad service, and

and

ducers is

slackening pace the latter

transportation, aluminum construction now pre¬
in the light plane field. Thousands• of alu¬
minum canoes, rowboats, and sailboats are being pro¬
duced and sold. Large quantities of the metal are being
used in the superstructure of passenger and cargo ships,
for lifeboats, and in ships' interior partitions. ~ Truck,
trailer, and bus manufacturers are using more aluminum, •>
particularly in body and axle construction. There is an
expanding market for automotive and diesel pistons,
and the use of aluminum for bearings and bushings is
making steady progress. At least 12 states will be using
aluminum license plates for automobiles in 1947-1948. j
In

toothpaste and shaving cream

growth to maturity in the peacetime
family of metals is the fact that the
nation's economical capacity for pro¬

dominates

items as

tegrated

^ood demand

1947 indicate

000,000. V*

prisingly large quantity

During 1946, nearly all of the war-built, governmentowned aluminum plants capable of economical peace¬
time /operations were leased or sold to private industry.
There are now three major producers serving the nation
as sources of new aluminum metal.
Each of these pro¬

good business during 1947 and

During .1946, more than 500,000
manufactured, and the prospects for
the probable manufacfure' of :well over 2,-

mainly experimental.

much aluminum per unit as prewar
Home freezers offer another substantial outlet.

1946, with architec¬
tural and building applications soar¬
ing upward to replace transportation
at the moment, as the field requiring
the largest percentage of this light¬
weight metal.
*
A
mark
of
alumriium's
rapid

over

W. W. Gasser

hardware; and numerous

significant
has
been
the
marked shift of emphasis in demand

prewar

war

Venetian blinds; metal awnings; nails;
other uses. There has been a'
particularly great increase in the use of aluminum for ■
residential windows.
Prior to the war- this use was /

sash and screens;

Postwar domestic

Also

four times

years

the outstanding applications, new and old,
creating the present tremendous demand for
in the architectural and building field are:

five times as

ducing

period of about two years when both
the price level and business activity
continued
on
a
high level.
Both
started to drop suddenly about two

are

alone is produced in larger
volume today.
(steel)

for alumnium in

President, Gary National Bank

Among
which

aluminum

such windows were

disturbances probably will

In this. New Year political

have their effect upon

pily, many of the best minds are at work on

mudfr

anticipated total for 1947 be accurately foretold.
ever,

corrugated aluminum sheet for farm and industrial roof¬
ing and siding; metalclad buildings; prefabricated resi¬
dential and other building; residential garage doors;

<JeJ-,;.

advertising in America in 1946 nor can the

all forms of

standards and

housing and commercial constructions, auto¬

as:

This great increase; in, income is but one

debt.

healthy economy

wartime needs.

still 5 unsatisfied.

fields

««

«-■-

teanvBusiness and Labor, has much work to do

£ 1936 only 18% of the nation's famii#iles had incomes of $2,000 or more,

is possible

The significance of these
figures is that in the years 1935 and

es while
wnne

wasteful spending.

corrections and

> magazines.

to Work

Back

for nothing, |of false

m. Giannini

revealing. The great
at the

quishment of the creed of something

These

more.

,-.r.

return to healthy ideas,
production,
healthy
ex¬
change of goods and services, healthy
thrift.
There must be final relin¬

•

increase

to lighten our burden of

requires
healthy

family in families with

| figures are very

should

Restoration

show that family expenditures for
magazines range from 53 cents per
family in the bracket under $1,000

$5,000 or

•

Alcoa has been

New wealth, both in material
and moral resources, must be cre¬
ated to replace the wholesale de¬
structions of war. There is no other

[I should like to refer to the statistics prepared some
[time ago by the Magazine Advertising Bureau which

per

,#vc\/ a

guided by the diversity of present.
and anticipated demand in projecting its plans for the
future, and is doing its part to promote the most desir- 1
able balance of the nation's over-all economy. In recent
months Alcoa has begun the re-adaption of its facilities
to the demands of peacetime markets, since many of the
facilities operated during the war were primarily de¬
signed for production of special materials peculiar to

This

President/ The Curtis Publishing Company

the coming

approximate 1,260,000,000 pounds.
Basic aluminum prices, reduced by 25% since the start
of World War II, are now relatively lower than ever be¬
fore, in the face of general price rises for competitive
metals. This price advantage, plus the widely expanded
familiarity of thousands of artisans with the handling of
aluminum as the result of war work, offers firm indica¬
tion that aluminum's future position is strong and that
the industry will find even broader markets for its
products. This indication is further bolstered by the
many new techniques and versatile new alloys of alu¬
minum which have been developed within the last six
year may

years.

year.

In discussing the opportunity for magazines in 1947,

incomes

production of new aluminum in

that actual

received.

WALTER D. FULLER

capacity production will develop in 1947, the Civilian
Administration having recently estimated

Production

willingness to give value for value

[with night and day service throughout the country.

| to $16.92

favor of

time to abandon flights of fancy in

contemplation of facts.
We have come a! long way on the reconversion road,

sober

[optimistic. In our own case, we have proven our op¬

Thursday, January 23, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

u'36

probable

that near-

than

satisfaction
form

other

the

use

of any
bad

of tobacco with no

effects. '
In

judgment there are two
overhanging a
prosperous
One, the need for

clouds

business horizon.

which will curb
and their fol¬
lowers who usurp
authority, and
who believe themselves to be bigger
than government.
Two, I believe

labor

legislation

those

labor

that

ful

leaders

industry
not

should be very care¬
price themselves out

Samuel

Gilbert

of business.

With

the

above

I believe we can all go
prospect of many years of pros¬

assurance,

boldly on with every

perity ahead.

(Continued on page-438)

Volume J; 165

Number 4562
*'L"v'--

•.

•

;

■:< \

lli^|ii»^»iWiUl^^lwi|<»»WWlM)WiWWWirt'WWWBWWi48WWMW>Wt)tW

THE COMMERCIAL &

FINANCIAL CHRONICLE

■■\ ;t. ;

■

(Continued

from first page j

United States Bureau> of E&*
bor Statistics on the number
of

strikes, workers affected,
man
days lost by strikes
in this
country.
V
and

;

FINDINGS AND POLICY

C<tone^

pressed in the Act, are ppiLfinature, dnd shcfiild hot

cal in

confused

with

scientific

findings, which; by definition,
aire attempted
expressions of
basic truths, regardless of

political policy., ;
p

Section 2.

The denial by
of 1 the right of

employers
employees to organize and the
refusal by employers to ac¬
cept the procedure of collec¬
tive
bargaining lead to strikes
and other forms
of industrial
strife or unrest, which have
the

intent

the

necessary

effect

of burdening or
structing commerce by
Comment—If two

people enter into
ment,

each

ment

Deal

stated purposes, he; is referred
to the annual
figures of the

;

Writings of Karl Marx, as
well: asri;hose • of
many New

of industrial disputed ; j
arising out of differences as f
ing under duress a "bargain." - denied that inequalities of
philosophers. The pri¬ to %wages, hours, f or other !
.Prior to 1935
employers did bargaining power exist among mary defect in this, theory is working conditions, and, by. • ?
deny; that workers had the individuals, because of differ-, the assumption of an eyei* restoring
equality of bargam-^\
right to destroy company ences in their native
abilities, present direct relationship be¬ trig power between employers
property,- or: to -prohibit its and
tween wage rates and the and employees.
7<
property holdings; It is
use, when agreements could
doubtful f that such inequal¬ total purchasing power', of
Comment—Before the pas¬
hot fed; rqabheS.;;
; hov?y ities can'
be materially less¬ wage earners. It does not rec¬ sage of the Wagner Act, em«
oyer; did hot constitute;
ened by legislation. Of
course, ognize, that if wage rates are ployees had the right to hr-{
j
should not be confused with,
ganize and bargain collect f j
coercion can be substituted arbitrarily held rigid in a
pe¬
"the denial
by employers of for
bargaining power through riod of recession, an unduly tively./ The Act did not con¬
fer this
thefright"M^ empdoy^s^ bfright upon them. A;
legislation. It may be asked large'number of workers are
ganize and vthe refusal / by- whether
distinction is to be made be- ' !
the Wagner Act has laid off,* thereby causing ah
tween
employers to accept the pro¬
protecting the "right
cedure bi collective bafgain- actually enhanced or reduced unnecessarily large decrease of employees to
organize and! i .)
in the
the employees' "actual
purchasing power of
liberty
bargain collectively," and coing."
j
;
the workers.
of contract."
jf £|||
erring individual workers andt
(d) causing • diminution of and
tends to aggravate re¬
Experience
has
proved minority groups to bow to the
employment and f wages fin
current fbhsiHess'
depressions that protection by law of khe dictates of the leaders of a<x
such volume as substantially
by depressing wage rates and right of. employees to organ¬ tual or alleged majorities.
;
to impair or
disrupt the mar¬ the
""7
H5
*
%
'
"
1
purchasing power of wage ize and; bargain collectively
ket
.for goods flowing from earners' in
industry and oy safeguards commerce from in*
DEFINITIONS
or into the channels
of com¬
preventing the stabilization jury, impairment or interrup¬
merce.
f
;
j V f'
•(3) The term "employee" ; ;
of competitive wage rates and tion, and promotes the flow of
Comment—It may be asked
working
conditions v within commerce by removing cer¬ shull ihclude
any i/hdivid^; |
if strikes called by unions do
and between industries.
tain recognized sources
of in¬ 'U$l .■■tohtise^yjotk has ceasedr -y \
not cause a "diminution of
as a
consequence of, or in con^y \
Comment—The
theory of dustrial strife and unrest, by ndctibn
employment and' wages in
'if
vbith) any currentAdj
business
cycles
expressed encouraging practices funda¬ bar
S
t\
such volume as
substantially herein, is also to be
dispuieor- because of anyfc
found ip mental to the
to impair or
friendly adjust¬
disrupt the mar¬
; (Continued on page 439)
"7 ;
I'.S'^ *

43Z

the

ob¬

agree¬

acting entirely
may be said, in

voluntarily, it

■

•

...

•

ket
or

for

T—rW.

goods flowing from

into the channels of

com¬

START

merce.

BUSINESS

SHOE

STRING

f
'

the

The

ordinary sense of the
inequality of bargain¬
word, that they have reached ing power between employ¬
a
bargain. If, however, one ees who do not possess full
person is compelled by law to freedom
of association or ac¬
agree to the demands of an¬ tual
liberty of ■ contract, and
other, or suffer loss of his
employers who are organized
property,

its

use,

any

iii

4he

corporate

other

^agrceme ht" Jconsuimniated forms ofownership lassgcia*
upder; such

—
~

*Jl''

circumstances, is
tion
substantially
burdens
inisnamefiyif; it is called a
"bargain." It would be just and affects the flow of com¬
as

logical to label

sion made

any conces¬

any person act¬

'.'Svj

hr v"""

•

■■

Comment—It

can

hardly be

It
-

happened back in '87

The workers in

YAy\rt

fa.''f.-.-i.
V

—

a,:i

here in Milwaukee.

the ir

big machinery plant, went about
unknowing thdi ^ove-their heads, on the big traveling

0. 'j;

'wfnejf

rpriYfinrr

rope was giving way;,
;
yWv-'* ' l

• •

•

work,;

y-v&
■\

•

?s,|

snapped without warning, plunging its loa<2 ,oii
helpless workers below!
■'

J,;.
"

-v

-•*'

(

••

...

y...-

flie?,|>;4

Tragic? Of course. Yet this very incident led to the bui Iding of
truly ^safe cr.ane, ,A new company, Pawling <5 Harnischfe jger, begdn what is today-the largest overhead crane business in th eworldf

;

JT:

■y
■

•

§}>

rtil^IHTlR^RISt MEMS?
"

ryr

Fraa atifamricQ rlirl 51

Jt jTww

<v."

TVio froorlftm

trv

trrVo

vliivxpiiMv U1UL JLU »ir lit? 11 vt^UIlA Iv; mAv

irlorr frrrnn
X

Ull iUvU llyl.

rr
UL

r,^'r

Aev-v, r..^

i (labeled
I* tQDIfiea

ARMMJRtC

XllllVlUUH f

.l.U

■

;

-;T-

"■

jobs for A mericai*
products for them tc > enjoy.

Today th^ American working

man,

less than his luckiest rival, draws

working

one day a week-1
than double the pay! Ho-

and. his fellow Americans constitute less than 7% of the world'st

Ocdioi the woild

telephonest vflhee^uarferaof the world scars?
.

Nor is this the end.

success, the American way; with new
men-dad women, new and better

String-to

best, a lid nothi ng but - the

vh' ■ ff j'

cTiaa

oXXvltT.:

y^lhe^ownmost of'&e world's radios... more than

-0-

The

< :rane, d

tiTrnif

It broke, it

,vv

merce,
>.

)'■■■

plenty, for still

Free enterprise

holds promise of still
people—-in the American way. W6

«nm>i>m*in

mmhti

*'*rf

4 |

V"*"

(

:,iUV; !•■••.■>>'.•;""■ '

■:v.'ff;,;.\.:,,,

vJj

","'V; ''I

438

(Continued from page

436)

smooth flow of goods between nation and nation

President, Gimbel Brothers, Inc.

ahead

The progress of our nation's business in the year
—and that includes both retailing ancfothertusinesses—
is dependent upon the vigor of our
system.
'
Following the war's end we have
faced internal readjustments
of a

can

beyond

those living

ing 12 months.

GEORGE GUND
President, The Cleveland Trust Company
The current position of our economy presents many
maladjustments that must be faced in the new year.
We
find ourselves in a distinctly abnormal and artificial
period which is a natural aftermath
of a long, all-out war.
Also, we are.
beginning to work free of a gigantic
federal bureaucracy that forced upon

anything which

period of peace. We must cease to

Labor, rep¬
millions of workers and
their families, and capital, repre¬
sented by owners of businesses and
Millions of stockholders and their
think in terms of war.

resented. by

under a strong
central government.
I believe our
thinking is straightening out, and the T

families,: must not be opponents in
a battle for survival. Instead, they
can "and
should join as friends in

making

of prosperity.

Bernard F. Gimbel

repetition of this
strikes, costly alike to the
combatants and to innocent bystanders. Recent state¬
ments by leaders of both sides encourage the hope and
belief that the approach to composing their inevitable.
differences will be characterized, as it should be, by good
will and cooperation rather than hostility and antag¬
year's

onism;

•

V Certainly in the field with which I am familiar, we
&0"no iet-up in the demand for goods, while at the same
time we are able to procure for our customers more
and more of 4he -goods which they- demand. We look

instance, I made the statement that "Recognition by our

government that price control without wage control is
meaningless."
As you know practically all prices have

purchasing power that has
of goods and services
produced by the country—arising from continued def¬
icits on the part of government that finds the borrowing
habit politically easier than setting its house in order and
living, within its income.
Government economies and
real budget balancing are definitely high on the agenda
end to the endless creation of

supplies.!
/•'
As to the first, all indications point
ta a satisfactory level of traffic, bar¬
ring a repetition of destructive and
unnecessary work stoppages.
As to the second, it seems not at
all unlikely that the rail brother¬
wagb demands,
new

forward with new

and possibly some
rules.

"featherbed"

Much

de¬

pends upon the reasonableness with
which such demands, should they

be adjusted.
third, any substantial
increase in cost of production on the
materialize,
As

can

the

part of those who furnish
roads with materials and

the rail¬

must, almost certainly, be

reflected

supplies

in costs to the railroads.
If
!•:••
Item (.1)1 seems,favqr&ble.,Items
(2) and (3) are imponderables. They are both of major
importance. More than anything else, the 1947 prospects,
'"for railroads as well as business and industry in general,
depend upon the degree to which organized labor can
approach mutual problems in a spirit of cooperation and
understanding. Wages cannot be increased without in¬
creasing prices, except on one condition—greater pro¬
ductivity per man-hour paid for.
f. Unfortunately, there is at the present time little, if
any, evidence that we may in 1947 look forward to any
Charles

J. Graham

such development.

relationship

National Bank of Seattle

banking business is concerned the out¬
look for 1947 seems reasonably clear. Deposits will re¬
sume their normal rate M increase resulting from pro¬
duction and profit. The feverish in¬
crease of the war period is a thing

Tthe i past. Bank earnings will: be, >§
reduced
s o m e w h a t » because
of
lowered revenues and increased ex¬
penses. -Loan demand ,wilk Continue
to be fairly strong, especially in the

want to enjoy
of the
fact that in our complex living of today, we are in large
measure
interdependent on many groups of workers.
Pressures from special groups must not be allowed to
upset the intricate and delicate balances of our economy.
And this achievement would be for the good of all
*
We in America

duction program.

There has been

gain in the ratio of loans
and mortgages to Government Bonds
held and this trend should continue.
Credit is

with

being freely extended but
greater degree of selectivity

and

caution.

We appear past the
peak of minimum money rates but
rising operating costs and a stabil¬
ized level of deposits will tempor-.
arily tend to restrict an increase of
bank earnings.
The background

for business is
good. The November election clearly
expressed the public's desire for or¬

based

can

well

flated

hope for less work interruptions in 1947 and

getting gack into the groove of peace time thought
of life.
Nineteen forty-seven will see this car¬
ried through into the price, inventory and supply and
were

and way

demand factors of business.

recession

but

healthy postwar

economy

but

anger,

should

prices boom too high, a buyers' strike could result, which

prices down too fast and usher in a re¬

would bring all

cession which might
as

of the

that

easily become

This

early 30s.

real

depression

must avoid if it is

humanly possible.

world, not just our nation, is impoverished by
There is a vast potential market with a gen¬

war.

uine

purchasing power far beyond anything we have

ever

seen

turning uninterruptedly so that our citizen?

steadily.^ We all fought

will be working

fight.

Our real job is to keep the wheels

before.

of industry

good and ji

^n$ }f we could do that, we can, with equal zeal
good and just fight to win and keep the peace.

up a

must work and we must produce the goods so

several years

of government price fixing in a
,

mark the beginning of
and not the preface of depres¬

ROBERT M. HANES
President, Wachovia Bank and Trust Company
Labor

holds

the key to business prospects for 1947.
leaders, pursuing their domineering tactics,
demand the 25% wage boost they have announced and
„w
stage more strikes, then we can
expect curtailed production, more
price increases, and substantial un¬
employment in the year ahead. •
If, on the other hand, labor is
reasonable in its demands, takes cog¬
nizance of the mounting impatience
of the public and the Government,
and decides to go to work, producing
much needed goods on an efficient
basis, then a sharp recession in the
? readjustment period can be
avoided,
and the prospects for
good business
in 1947 will be much brighter,

labor

ji The recent defeat of John L.Lewis
Robert M. Hanes

all workers, to avoid com¬

slow to

public

We may witness a tempor¬

should

sion.

his conviction, dba- court: will
surely -server* a warning
who would challenge the sovereign
rereigmy
of
our
Government
and
selfishly
aM

seek to strangle our whole economy.

Again

American

Nineteen forty-six was a year of human
and social adjustments in which individuals and groups

prices.

The

policies.

ganized labor.

There should

petitive bidding, which only starts a vicious cycle of in¬

economy

better alignment of the rights and responsibilities of or¬

willingrieSs^bfithS Tparf of "both the ITOftsuming pub¬

lic and all business, as

the capitalistic system and sound fiscal

If the coal strike marked the climax of labor troubles,

•

Lewis G. Harriman

thodoxy in government and business and

decided

backed by the largest volume of

are

liquid capital the world has ever known.

After

have

the evil

seen

effects of uncontrolled

wielded by an unscrupulous dictator. Our fore¬
fathers, in establishing a new government on this conti¬
nent, knew the evils of uncontrolled power, and they
established a system of checks and balances on the power
power

of government.

At one time it was said that large busi¬
organizations wielded too much power and this
power was curbed through the anti-trust laws and other
ness

regulatory legislation. For nearly 14 years, power in the
only been uncontrolled,
but has been stimulated and augmented by political
leaders and government agencies. The new Congress
must act to place adequate controls over such power if
the best interests of labor, government, and the public

hands of labor leaders has not

are

to be saved.

Assuming that we solve our major labor problems, we
shall move rapidly from a sellers' to a buyers' market
in most lines in 1947.

continue to

Automobiles and construction may
some time with excess

bottlenecks for

demand

ever supply,
but even here the picture can
change rapidly. This means that producers and distribu¬
tors must use every effort to improve quality and to
stabilize or reduce prices. Buyers are quickly becoming

quality and price conscious. It means that caution
building inventories, that every possible
operating economy-be adopted that will not destroy
quality of service or product, and that aggressive mer¬
chandising and selling must again be employed in busi¬

many busmes men are finding it difficult
adjust to competitive conditions in peacetime mar¬

sellers' market
to

kets.

It is decidedly erroneous to

ly determine selling prices.
that does not necessarily
our

economy a

marked
Geo.

Greenwood

hoped that
in - this direction will be made during
the year. It is likely, however^ that the early part of
the year will be characterized, as for the past year and
a half, by labor disturbances both large and small.
The price level has gone so high that a turn is almost
certain.
Consumer resistance is likely to bring this
about if nothing else does. How far the price recession
will go no one can say. While the price decline might
cause some upsets, on the whole it would be wholesome
progress

and desirable.

Internationally there is reason to hope that world

trade

jslowly and. spbttUy.. fp this field, however;

think that costs direct¬

In a competitive economy

follow,

some

segments of

high price structure has been created, and

price disparities exist among various groups of

commodities.

r
monious and it is to be

groups.

the world.

the

will improve

While

pretty largely upon
two factors: one of these is the at¬
titude of government toward busi ¬
ness, which promises to be somewhat ■ ,
more friendly than it has been for g

s
some

production of

sadly needed both here and in nearly every country of

;

dependent

past 15 years; the other is the
relationship between business and
labor. The interest of both parties is
t
to make this relationship more har¬

maximum

individual freedom, we must be ever aware

our

But

field of individual; borrowing, y ;
f The state of general business will :>
be

have

must

low worker efficiency.

cases

put

all

Most

S. Government obligations, the emphasis
serving the financial needs
of business and individuals. Earning
assets generally have decreased as
a result of the
Treasury's debt re¬

volume

goods and services at the earliest possible date. Crip¬
pling disagreements will not bring this about. Our mal¬
adjustments seem to be reflected in restlessness, indus¬
trial" strife based on all sorts of demands, and in many

the

As far as the

the

when the 80th Congress meets.

The

GEORGE H. GREENWOOD
Chairman, The Pacific

expressed the opinion that there should be an

banking business is rapidly returning to a peace
While banks will continue to be substantial

now on

ary

been de-controlled.

now

hoods will come

over a

I also

CHARLES J. GRAHAM

'V : ;V y

•

century these forces have
brought us nearer than any other to
providing an abundant life.
During the past year, I haVei
spoken and written often of the dan¬
gers-of inflation to our national and
world economy.
In my discussions
I pointed out a number of actions
I considered fundamentally import¬
George Gund
ant, and I am glad to observe that
the trend in this direction has already begun.
For

business in 1947,

fresfdent, The Pittsburgh & West Virginia Railroad Co.
I Railroad prospects for 1947 rest upon (1) traffic vol¬
ume,' (2) the attitude of railroad labor, and' (3) the cost
of material and

American sys-

our

again coming to the front.

are

For

labor will avoid a

toward to a year of good

economy

normal forces of
tem

Happily
signs are not lacking that.the lessons
learned by both management and
the

planned

us a

The

time basis.

holders of U.
is

private enterprise

today have ever seen in

President, Manufacturers and Traders Trust Company

expected.

Money rates have already stiffened somewhat. They
be expected to firm up a little more during the com¬

can

■

magnitude

LEWIS G. HARRIMAN

much remains unsettled and it is too much to expect that

BERNARD F. GIMBEL

Thursday, January 23, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

The distortions and artificialities are cer¬

tain to be worked out in time, and I feel confident
some

of these

maladjustments

that

will^ be worked out in

1947, if business and industry is given a fair

chance.

held steadfast to
the belief that this nation's continuous progress is inevit¬
able and outlives any single generation of men or any
set of conditions, the outlook as we start another year, is
encouraging, and in my opinion, favorable for establish¬
To those who for the past years have

ing new high records of

work.

Let's all get to

1948* —

prosperity.

•

We shall be glad we did in

^/If,j:-

must be used in

ness.

1":'4

.i^

The lush days are over.

vlf

It is better for all that this

true.

Should

experience a recession in 1947, it should
by surprise, for certainly it has been widely
predicted. Perhaps the widespread warnings may prove
salutary and serve to bring about needed corrections in
take

no one

advance. Labor may. See the

handwriting

the wall.

Certainly

some of the necessary readjustments and
corrections have been or are being made.
The stock
market led the wayvand gave notice that important

changes would follow. Agricultural commodities have
substantially from recent high levels. There

receded

have

already been price corrections in a number of
luxuryI lines. Retail merchants are more cautious in
building their inventories and industry, has made many

(Continued

on .page

440)

BMWWWflilWIIMil
iim»i«i.mi

Volume 165

THE COMMERCIAL ft FINANCIAL CHRONICLE

Number 4562

Economic
^(Continued from

labor,

section 9 (a).

437)

page

439

subject to the provisions of provision makes a
mockery of
any logical concept of equity.
Comment—If the Wagner
Any employer, desirous of
Act may be said to contain
remaining in business, is con¬
"teeth," this provision is cer¬ tinually anxious to reach
tainly the largest fang. As equitable bargains with work*
fangs usually are, this one is ers either as individuals or as
well laden with
poison, a suf¬ members of groups. The very
ficient amount, in fact, to continuance of his business
seriously cripple our indus¬ depends upon his success in
so
doing. If he fails, he does
trial, free-enterprise society,

Interpretation*oHhe Wagner Act

concerted activities, for the tivity is either passed on to
and purpose of collective bargain¬ the public in the form of
who
has not obtained any
ing or other mutual aid or Higher prices, or higher taxes;
other regular and substanti¬
or
it reduces the profits of
protection.
ally equivalent employment
business.
;
v.:
Comment—This

unfair

***»*«,*»*.*

practice,

merely de¬
right which employ¬
(3) By discrimination in re¬
of the definition of the term ees
had before the passage of
gard to hire or tenure of
"employee." Because of its the Act, and which was not
employment or any term or
width and implications,
many conferred upon them by the condition
of employment to
not have a labor force.
potential workers are en¬ Act.
and to send us further down
encourage or discourage
This provision subjects the
couraged to become charges
Sec. 8. It shall be an unfair membership in any labor or¬ the road to comrhtmisni. This
(Continued on page 441)
oh society rather than to ac¬
labor practice
for an em¬ ganization: Provided, That
cept available work. By vest¬
nothing in this Act, .; shall
ployer—
ing a worker who has left his
(1) To interfere with, re¬ preclude an employer from
job with the status of "em¬
making an, agreement with a
ploye^" the law encourages strain, or coerce employees in labor
organization (not estab-.
the
exercise of
strikers to
the rights
prevent willing
lished, maintained,, or assisted
workers from accepting em¬ guaranteed in section 7.
by any action defined in this
Comment—It
is
a
valid Act as an
ployment. ,Such interference
unfair labor prac¬
with the rights of willing function of law to prohibit
tice) to require as a condition
workers and employers works any person from coercing an¬
of employment membership
to the' economic detriment of other, or from
interferring therein, if such labor
organi¬
the entire nation.
with another, when he exer¬
zation is the representative
of
cises his rights.
NATIONAL LABOR RELA¬
the employees as provided in
TIONS BOARD
(2) To dominate or inter¬ section 9 (a), in the appropri¬
fere with the formation or ad¬ ate collective bargaining unit
The Board may, by one or ministration
of any labor or¬ covered by such agreement
more
of its members or by ganization or contribute fi¬ when made.
such agents or agencies as it nancial or
other support to it:
Comment—This subsection
may designate, prosecute any Provided,
That
subject to is uneconomic in its effect in
inquiry necessary ,to its func¬ rules and regulations made that it
gives legal sanction to
tions in any part of the United and
published by the Board the closed shop. The closed
States. A member who par¬
pursuant to section 6 (a), an
shop is a monopolistic tool
ticipates in such an inquiry employer shall not be pro¬
used by unions to interfere
shall not be disqualified from hibited
from permitting em¬ with the right of workers to
subsequently participating in ployees to confer with him sell their labor to
employers.
a decision
of the Board in the during working hours with¬
Any monopolistic tool used
same case.
out loss of time or
pay.
effectively in the economic
.

Comment—Note the width

scribes

Comment—Because of this

provision
can

and

act

Comment — Unions have sphere restricts
production,
member frequently
interpreted the and thereby operates to the
prosecutor proviso as a license to process economic detriment of the na¬

Board

both

judge.

RIGHTS OF EMPLOYEES
Sec.

shall many cases, assumed wasteful high proportion of closed
self-organ- characteristics. Many union shops is thereby handicapping

Employees

have the right to

izationt to form, joinor
sist

It
follows
grievances, f Grievance pro¬ tion.
that
any
cedure
has, therefore,
in community having an unduly

labor

organizations,

as¬

workers

have

time away

spent

much itself in the

from duties, either

bargain collectively through processing "manufactured"

representatives of their own grievances,

choosing, and to

engage

in The

just

of economic

Ty'/ 4?M

(5)

refuse to

loafing. collectively

cost of such wasteful

race

progress.

sentatives

ac¬

bargain

with the

repre¬

of his employees.
liupit

\vi
f

iy'-r,

tf 1

BIG
Business, too

.. .

■

<$t

esults of Acousti-Celotex sound

"P1

It,conditioning prove

that taking

the noise out of business is

good

business.
And

done with

Acousti-Celotex

conditioning—the magic

which creates

comfortable

ing environment.. .soothes taut,

over

100,000 Acousti-Celotex

installations in buildings of every
kind prove

sound conditioning is

also BIG business.

outstanding business concerns are

reducing noise with Acousti-Cel¬
tile. Installations

otex cane-fibre

tired

nerves...improves morale...

steps

the efficiency of workers.

So,

matter what your noise

problem

F^om coast to coast, the nation's

All
sound

offices, factories, banks, stores,

be, consult the

may

Acousti-Celotex distributor for

territory. He's

your
an

member of

organization with the "know

how'* derived from thousands of ?
acoustical

installations in

every

and

type of building, large and small.

churches have made this the most

And he features the world's most

hospitals,

theaters;

schools

widely used, of a/2 acoustical
terials.

ma¬

And here's just one example of

ST. LOUIS

the results of sound

conditioning.

By actual test the Aetna life In*
Company decreased

surance

errors

37%... decreased typists'

29%. At the

efficiency
creased

same

confidence, too. His advice is
without

will

time the

of employees was

8.8%!

in¬

yours

obligation. A note to

bring him to
*

em¬

ployee turnover 47%... decreased
absences

extensively used sound condition*
ing material Consult him witty

your

desk.
I

F R E EI "25 Answers

Sound Conditioning."

Interesting, fact-

packed booklet.

Questions

Write: The Celotex

Corporation, Dept. CF-147, Chicago 3,
Illinois.

ACOUSTI - CELOTEX
SINCE 1925

;

Sold by Acousti-Celotex Distributors Everywhere. In Canada: Dominion Sound
.

/"*" : ■■•••"

*■■■

/-c

T '

V-:,

•

■iff

■%
"

1 *

PRODUCT

*.-.•>

THE

CELOTEX

Equipments, Ltd.*
YMjl
."6y. v>

CORPORATION, CHICAGO

^; f= i* * f;

•: ■ •

ILLINOIS

■m

•.

jU>.

•:

•.

J'v

y-t: Y

t>ivTV> v.

!
-

verm

;'~v

it-it

,UL
c

'-.v.

livii

'-oij;! Vt

THE COMMERCIAL & FINANCIAL CHRONICLE

440

Thursday, January 23* 1947

Business and Finance Speaks After the Turn of the Year
(Continued from page 438)

readjustments

the shake-down,
v

■

will be

approximately the same because of. the prob-;
ability of reduced exports and the availability of im¬
proved farm and processing machinery. .Per capita
food consumption in 1946 was estimated at115% above

J^nce " the removal^ of/controls.' -Spine or
therefore, has been accomplished.

study economic history we

On the other hand, as we

sharp recessions usually follow the kind* of
.inflationary boom we have recently experienced. There
."'11."
«:c
Qiifl
nlanr
is considerable postponement of new building and plant
™rl
expansions because of excessive costs. When it becomes
'apparent that better goods will be available) at lower
^prices, the public may/defer some of its demands.. ....
that

.find

•

—'

methods.
the

the needs.

•

.•'»

„„

•

vohime
satisfy

,*■■

■*■■:**-

ahead will offer many opportu¬
nities for progress and prosperity in the business that
is well managed, that operates efficiently, that aggres¬
sively sells its products or its services, and is flexible
enough to adjust itself quickly to meet changing con¬
rtelieve that the year

•

speedier,'

efficient

nrnrlnrpd

distribution

Immediate improvement should

result from

of new

further

H. HITER HARRIS

| President,

First and Merchants Nat'l Bank of Richmond
?
Commercial banks generally are entering the New
Year in good condition.
They have just passed through
a vear which resulted in a substantial reduction in their
total deposits, naturally accompanied
by a decline in earning assets.
This
-

not occur
with a
material increase in volume of. loans,
in
some
cases
at
slightly higher
did

deposits

the

year,

earnings for the year com¬
pared favorably with those for 1945,
in spite of higher operating costs.
It does not take a prophet to say
that in 1947 general business condi¬
tions will exert a powerful influence
upon bank operations.
An increas¬
ing volume of business will mean
rates,

ing

Natrium,

nf
a

spoilage that, continue to take a heavy toll
of the nation's food supply.
Teamwork of progressive farmers

4 AH factors considered, there
that 1947

year

for business generally.

as a

reasonable

seems

whole will turn out to be

con-

Commercial banks, who

plications until

some

of the uncertainties

are

Company to surpass former produc¬
tion records in glass, paints, chem¬
icals and brushes.

Consumers can look forward to *
sadequate stocks of almost all foods, '
including those in short supply durI ing the war, and can expect new
'$
chopping conveniences in finer food ?

Completion of a new paint manu¬
facturing plant at Springdale, Penn¬

cleared up.

sylvania late this winter, at a cost of

$1,750,000, will further expand the
Pittsburgh Plate Glass Gompany's v

productive capacity in the critically
short paint and varnish industry.
-•
A major competitor in the • paint x
and varnish industry, the company

:-,~

stores.

The

embarked

entire food

on an era

tribute

substantially to the improve- y:
production and distribution
methods.
;}■.
f.
'
ment of

Ten years ago the advent of the
introduced true

mass

-distribution to the. food, field.

The

super

market

f"
T

next few years

will see a refinement
techniques involved in this
development.
cr&i ri
of all the

follows:

•

John A. Hartford'

The Department of Agriculture
predicts that although
1947 food production may not reach the record 1946
T

i'-- level, the amount available for domestic consumption

J. B. HILL
President, Louisville & Nashville Railroad Company
The LouisvilleA& Nashville obtains
half

its

traffic

from

the

So far as I am

judge, the demand for coal

also

high

during

1947.

the volume

sanguine that

of other traffic will hold up reason¬

I am, therefore, antici¬

ably well.

pating

good volume of traffic on

this

railroad

well

know,

merely

currently is operating paint manu¬
facturing plants at Milwaukee,' De-

the

for

year

however,

that

1947.

this

and do not attach too

a guess

much significance to my

opinion.
•»'

jijjj

W. T. HOLLIDAY

President, The Standard Oil Company; (Ohio)

Demand for the oil indu$tfy'ii products during,ithe, past
12 months was not only-substantially afyiye^that: of ahj?/
i

previous peacetime 'year but. also* exceeded
year. -vTo Satisfy such) depland;!crude:
oil
production and: refinery runs
H. B, Higgins
New Jersey.•'
: were 'greater than'
[eye?^before;^'-Hovvj-X
;
j
Acquisition of the M.; B.'JSuydam Xever, inventories were maintained in
reasonable' balance with the result
Company, 114-year-old manufacturer of industrial fin¬

Angeles,., :
Portland,Pittsburgh,•' and Newark,-^
troit, Houston, Dayton, Los

division is a recently in¬
troduced single-coat oil base wall paint manufactured by
the polymerization process.
Commercially known as
Commercially
"One-Coat Wallhide," the new paint attains greater hid¬
ing power through formation of larger molecules in the
paint composition.
.
'

With the nation's home builders and industrial concerns

making unprecedented demands for paint and

that production and refining in the
period ahead can be closely related
to actual consumption requirements.

The

importance of the

industry in
■

our

demonstrated in

economy

petrolbuiii
was

well

1946 when the de¬

mand for its principal product, gaso¬

substantially above the de¬
non-rationing year,
■1941, despite the fact that relatively
line,

ran

mand of the last

production, distribution, packaging,
retailing and public service, iriay' be'
summarized

The outlook for 1947 is quite favorable for all opera¬
tions of the Pittsburgh Plate Glass Company if produc¬
tion and marketing can proceed unhampered.

few

Newest product of the paint

The food outlook with respect to

production, this will be advantageous
a major supplier

of automotive finishes.

ishes, was consumated during the past half year. Now
operating as the company's M. B. Suydam Division, the
>unit's production facilities are located at Pittsburgh,
Pennsylvania.
x:..X'!. '
:";
; The recent purchase of the Morck Brush Manufactur*
ing Company of San Francisco, California, which is now
operating as the Morck Brush Division, gives the comuany brush manufacturing facilities on the West Coast to
permit more rapid delivery and better service to brush
customers ift: the area west of the Rocky Mountains;
.

industry is r;

destined to cori*

increase their

to our Ditzler Color Division which is

approaching

••'. :■

•

best-Sedvnatio^lB'^he

.world in 1947, with farmers and processors
their record 1946 production levels.

addition, automobiles are using increasingly large
areas of glass, which is of considerable
importance to our
glass division, and when the automotive industry is able

are

;

continue

iJPrtfsidentj ThefCfreaf Atlantic & Pacific Tea Company
America

trial and commercial construction.

will

JOHN A. HARTFORD

;

The demand continues to be heavy for all of the com¬
pany's products. It is obvious that the construction in¬
dustry has not yet even begun to reach its peak, and our
paint and glass products are essential for house, indus¬

products of mines.

industrial

step in
prograhi"

program, a

designed to meet the demand of industry for basic ma¬
terials which are still critically scarce.

able

•

The purchase of the Natrium plant is the first

acquisition

earning assets, and operating costs con¬
tinuing to rise, banks generally can hardly expect net
profits for 1947 to reach those for 1946.
:.

caustic

paint producing company and a brush
manufacturing firm during the past business year have
enabled the Pittsburgh Plate Glass

Expansion of production facilities and the
of

With decreased

1941 when critical shortages of chlorine
soda, vital basic materials, threatened to
slowdown production of materials needed for the coun¬
try's war machines. Today, the need for chlorine and
caustic soda is just as urgent for such heavy consumers
as rayon, plastic,
soap, chemical, synthetic rubber, and
commercial dye producers as it was during the war

and

about

President, Pittsburgh Plate Glass Company

good

ready and able to meet legitimate needs of industry,
should, of course, follow developments closely and use
somewhat ftwrer

and processors and

HARRY B. HIGGINS

assur¬

very

on
the Ohio River approximately 30 miles
Wheeling, the construction of the plant was

started late in

paid dividends tp the. consumer.
It is clearly our mutual responsibility to continue ap¬
plying every new facility at our disposal to the tremen¬
dous job of feeding America.

favorably, "the income of farmers generally

ance

marketers has always

favorably with prewar years and
be sufficient not to affect seriously the purchasing power
of that great unit of our people.

and

ompare most

developments require the close cooperation
and as a matter

long-standing policy, we consider the retail food store
laboratory for agriculture and a proving ground for
preference.
Time and again. we have participated in marketing

waste

really to go to work, our production will increase rapid¬
ly, thereby reducing unit costs and increasing real pur¬
chasing power. Under such conditions there should be
little justification for a recession in business this year.
Unquestionably, the prices for many farm products in
However, if weather

new

experiments with farm organizations, Federal and state
departments of agriculture and agricultural colleges to
help growers tailor their crops to suit consumer tastes
and at the same time find new ways of reducing the

during 1947.
Competition, dormant during
is being restored in many lines, and in

are

Located
south

the Chemical Division's expansion

consumer

years,

1947 will be less than in 1946.

stores! .This:trend is further

large chlorine and caustic soda produc¬
West Virginia. The plant was
built and operated by Columbia for the
government's
Defense Plant Corporation under a contract which in¬
cluded an option to purchase.

plant

years.

These

instances price-cutting has been in evidence.
the American people will make up their minds

rditions

Improved service to customers' will result from, a bet¬

of all branches of the food industries

goods and of building costs is beginning to meet
Considerable consumer resistance.
Unless we can stapil! i^e costs and through increased efficiency lower prices,
thereby increasing the real purchasing power of the peo¬
ple, we could conceivably have a considerable recession

company'snew: stores,: for example,

employees served, in the armed forces, and veterans
now
constitute nearly one third of the company's
entire personnel.
Employee training programs in¬
augurated in recent years should result in still fur¬
ther improvement in service to customers.

ble

war

With architects specifying greater use
glass in nearly all postwar commercial and residential
structures,. Twindow Will aid in reducing heating and
air-conditioning costs.*
'
"1
..
r
^

accelerated by the:return of : experienced "employees
from the armed services.
More than' 27,000 A & P

ever, the extreme rise in the prices of consumer and dur-

some

sealed air spate.

acquisition of

ter physical setup of food

liquidation of inventories will
bring about a falling-off in loans and
;
H. Hiter Harris
consequently in interest earned.'
Emnloyment is up and production
Is^hi
igh in spite of loss of man-hours because of. strikes
and shortages of some materials.
Accumulated demand
for consumer goods in many lines has not yet been filled.
The increased need for houses seemingly assures an ex¬
tended period of activity in the building industry.
How¬

the

type window composed of two or more plates oT
glass enclosing a quarter-inch or half-inch:hermetically
0Placc ar",1Aelv,rt "

new

Availability of building supplies should expedite the
development of finer food stores during 1947. • The
first super markets ten years ago. were, for. all prac¬
tical purposes, not retail stores, but warehouses en¬
gaged in retailing. The new food, store, offers a greater
volume and variety of food than the old super mar¬
ket; arid also brings the customer every shppping con¬
venience that modern equipment and methods make

obtain; all her .food; supplies under one. "FpoL
5.

ied by

in business

cient thermal and dust insulation unit, the product is

Within the past several months the company's- Columbia Chemical Division completed
arrangements with the
government's Reconstruction Finance Corporation for the

possible.: The

A recession accompan¬

loans.

x1n«n

v^nia) designed exclusively for the production, of TwidCP.A approval for the construction hai^ been granted
and preliminary work on the building's construction has
been started within the past few months. .When peak
Production is reached, 300 persons will be employed at
the new plant.
'
>

+V»/s

give promise of providing consumers in all sections
of the country with top-quality seafood , and should
mean an expanded market for the fishing industry.

late

ftfntoc-

University on prepacked vegetables in anticipation
of the day when it may be practicable to trim, wash
and package farm produce on the farm. Initial re-'^
suits from freezing and packaging freshly cahght fish,

decline

TTnitonl

food iii consumer-size packages. The company :wili f
continue its joint research with officials of Ohio State ■

ditions.

until

operates its large research laboratory. One of the prod*
nets recently developed there is a double-glazed window
insulating unit known as Twindow. Designed as an effi-

v; Demand'for the double-glazed product has resulted in
experimentationlihj tl^sal^ bfl' ^distinctionof $750,0t)0 plant (^t Creighton;;Pennsy(-'
.

Outlook is for

■

produced in the United States, the firm's glass division
,

lightweight "box, cars, refrigerator:cats
and trucks.. This will be supplemented by more direct routing of perishables from farm to! retail
store,
by-passing even the warehouse wherever practicable;
From, the long-range viewpoint A & P experiments
with. Wayne University,- in the field Of air freight,
indicate a good future market for some aiiborne per¬
ishables.' 'ii..
j 'l"Iv
|

phase- of our economic -life, knd there is uimge
of accumulated savings and credit available to

use

"
;1
■ • , ■
..
[
•
'
> ■
the site of Works No. 1, at Creighton, Penn¬

•

sylvania, where in 1883 plate glass Was first successfully

movement of perishable food into, retail channels are

indicated

products, the firm's paint division anticipates
employment and further expansion of existing

Located

2.. Reduction of waste and retention of quality in the

While economists may differ about the pattern, for
next year, all seem to agree that the longrrange picture
tEoF business is good. There is 'unsatisfied tieeds. in every

constant

facilities.

the pre-war average.

nn..r

varnish

new

uced
W.

Holliday

automobiles had been prod¬

in the

intervening four yearS.

Older cars, pushed hard in many in¬
stances during the war years by

needs of

their war-worker owners, were

the

given further

larger production of re?and the improved avail(Continued on page 442)

periods of usefulness by the
placement tires and batteries,

THE COMMERCIAL & FINANCIAL. CHRONICLE

Of the Wagner Aci
tice

The know-how of operations in
18 industries is explained-" in a
series

of' 51

films

private industrial
the United
Service and

analyzed by
States Employment

(Continued from page 439)

hearing* before the described * in a USES booklet
In any such pro¬ "Industrial Films
but to coercion. If he does not Board.
A Source of
continually acceed to an end- ceeding the rules of evidence Occupational Information." The
booklet, according to the Employ¬
fcff thiiQnMi^and[sf prevailing in the courts of ment Service
advices, evaluates the
he may, because of this pro¬ law or equity shall not be effectiveness of the films in
pre¬
i
; senting job and process informa¬
vision; be subjected ; to a controlling.
tion for such industries as abra¬
charge of committing an un¬
jjCommept^
sives, brushes, clocks, construction,
fair labor practice!
why; "iri':.-any;sticlt proceeding

employer not to bargaining,

...

—

REPRESENTATIVES

AND

ELECTIONS

Sec. 9. (a)

[designated

Representatives

selected for the

(c)

.If upon all the testi¬
mony taken the Board shall
be of the opinion that any
person named in the com¬
plaint has engaged irr or is
engaging in any such unfair
labor practice, then the Board
shall state its findings of fact
..

Gov*

Cotton Crop Report

8,482,000

of films in

year

presenting those facts.

A United

States cotton crop ol
is estimated this

bales

by the Crop Reporting Board

the

Bureau

Agricultural
the publica¬
Economics based upon : informa*
tion i£ made - up of the film de¬
tion% reported by t ginners and
scriptions
and
evaluations
in
"The major part of

which

included indications of

are

the jobs most

films

and

check list

films have had

copy.

quires that they, know facts about
jobs and industries with the value

also said in part:

the

States

As of November 1

was

United

Printing Office, Wash*
ington 25, D.C., at 20 cents per

The- Industrial Films booklet
planned to acquaint those
persons whose line of work re¬

was

which

"Many

Documents,
ernment

Minnesota Valley Canning Co.

details

clearly shown and
the

transportation
The rating scale
used in previewing the
and

audience

shown in

are

Another

dix.

distributes

who

films,: rental
charges, etc.

response

appendix

appen¬

presents

nationwide circulation because of a list of periodicals and catalogs
.purposesof collective bargain¬
their popular appeal, but they containing references to other in¬
ing by the majority of the em¬
have permanent value for voca¬ dustrial films. And for those new
ployees in a unit appropriate
tional guidance counselors voca¬ to handling films, there is infor¬
tional
for such purposes, shall be the
training and engineering mation on ordering, caring for,
teachers and personnel directors. and returning films."
exclusive representatives of
The titles include: "Steel—Man's
The
publication is
available
all the employees in such unit
Servant,"
produced by United through *the Superintendent of
for the purposes of collective and shall issue and cause to
bargaining in respect to rates be served on such person an
of pay, wages, hours of em¬ order requiring such person to
ployment, or other conditions cease and desist from such
of employment..
unfair labor practice, and to
Comment—It is in this sec¬ take such affirmative action,
tion that the rights of individ¬ including
reinstatement
of
ual workers, and those who employees with or without
constitute
minority groups, back pay, as will effectuate
are drastically restricted.
In the policies of this Act.
the light of this provision,
Comment
Many workers
which compromises the in¬ have been
encouraged to be¬

jthe rules pi evid^ncp pr^yaitting in courts of law or equity
shall not be controlling."

"Deep Hori¬

by the Weyerhaeuser Lumber Co.;
"Green Giant," produced by the

fpod products, furni¬
ture, lumber, mining, paper and
pulp, petroleum, plastics, printing,
railroads,
rubber
tires,
shoes,
steel and textiles."
The advices
cooperage,

Corp.;

zons," produced by the- Texaco
Co.; "Trees and Homes," produced

51 Industrial Films

Steel

States

UjSES Booklet Analyzes

Economic Interpretation

441

farmers

of Dec. 1. The

indicated

1946 crop is only 5,000 bales less

than

the

Nov.

5.0%

less

than

crop

1
last

9,015,000

forecast/ and
year's small
bales.

about one-third smaller than the

10-year average,
000 bales

and only 537,*

than the 1921 prop

which was the smallest since 1895,

The lint yield per acre,
at 230.7
year

since

with 253.6
year

computed

pounds, is lower than any

and

1936,

compares

pounds harvested

lasi

and the 10-year average

243.8 pounds.

—

dividual worker's freedom to

come
charges upon society,
labor, it is ironical rather than to accept avail¬
that the Wagner Act is some¬ able
employment, because of

sell

his

referred

times

the

to their

ances

Comment

This

and home buyers

affirmative

employer"

its

member, agent

proviso shall

Mortgage -Cancellation
ice

considered

now

offered

to borrowers

Insurance is the new, extra serv¬

by The Dime Savings Bank of Brooklyn

or agency,

by the
proved quite in¬ court, unless the failure or
effective
in
protecting the neglect to urge such objection
rights of individual workers, shall be excused because of
that is in negating the effect extraordinary circumstances.
of the preceding part of Sec¬
Comment—This provision
—

owners

the

phrase "and to take such
action, including
Provided, That any individ¬ reinstatement of employees
ual employee or a group of with or without back pay."
employees shall have the right
No objection that has not
at any time to present griev¬
been urged before the Board,

Magna Charta of labor.

•

for home

of mortgage money.

has thus far

tion^ (a).
(c)

Whenever

question
affecting
commerce
arises
concerning the representation
of employees, the Board may
investigate such controversy.
In any such investigation,
the Board shall provide for an
appropriate hearing upon due
notice, either in conjunction
'with a proceeding under sec¬
tion 10 or otherwise, and
may
take a secret' baMot of: em¬
ployees, or utilize and other
a

•

the Board with

vests

stantial

amount

sub¬

bureau¬

cratic power,

beeause it sub¬
jects employers to the pre¬
liminary preparation of legal
cases, whenever the whims of
the Board shall

dictate.

INVESTIGATORY POWERS

Assure your

family

debt-free home through

low-cost life insurance

'
For

our new,

plan.

■
.

only $2.85 monthly (Age 35—$5,000 mortgage pay¬

able

monthly

20 years),

over

you may

add this insurance—

to your

Dime mortgage, and know that your family will

have

home, not

debt, in the event of your death.

•

(1) The Board, or its duly
shall at all reasonable times
have access to, for the pur¬

of examination, and the
suitable method to ascertain right to copy any evidence of
such representatives.
any person being investigated
br proc$$M
re^

•

if the

able
<,

If you now have an

old-fashioned, fixed mortgage, or if you

pose

plan to buy or build

home,

come in
a

and discuss this New

SEND FOR OUR FREE BOOKLET

phrase "any. other .suit-

meilfed^te^^qeHarmsuch vestigation

repr^eptatiye^,,dqesnotgiye

"New Protection For Families of

question.

Any member of the Board
s/ialL

power

Home Owners and

issue

Home

Buyers"

subpenas;. requiring
tendance

nomically desirable.
PREVENTION

UNFAIR

and

the at¬
testimony of

witnesses and the production

any

LABOR PRACTICES

any matter

(b) Whenever it is charged gation

evidence that relates

under investi¬

And remember—this insurance is not
you

with

and
or

your

engaging in

1 unfair
Board,

labor
.

issue and
.

cause

the

such
.

without it.

in question, before

to be served

complaint

charges in

Comment—It may

the whether

shall have power

upon such person a

".stating

any

practice,

that

power

this

the

be asked

bureaucratic

with

the

social

and

economic welfare of the peo¬

respect, and containing a no¬ ple of the United States*

DIME

SAVINGS BANK
OF BROOKLYN

vested in the Board by

provision is not incon¬

sistent

required. It only benefits

family, long term mortgage Joans are available

that any, per son has engaged the Board.
in

Mortgage-Cancellation Plan.

Bank That Serves The Home Owner
The
FULTON STREET AND DE KALB AVENUE, BROOKLYN 1, NEW YORK
BENSONHURST: 86 St. and 19 Ave. • FLATBUSH: Ave.

and Coney Island Ave.

■> 4

,!^""*.!'''''".',",flf""^1 "7 i v""•ft"1'' *"*

THE COMMERCIAL & FINANCIAL CHRONIcLE

442

Thursday, January 23, 1947

Business and Finance Speaks After the Turn of the
'

(uonunuea from
(Continued irom page

*-*

-I ability of

spare

440)

The American

parts and repair service.

increase in sheet and strip facilities.

Sheets are used so
extensively in our daily lives for the manufacture of
such products as automobiles, stoves and numerous other
articles that the pressure for sheets has been extremely
acute.
This situation is being remedied as rapidly as
possible, and when the new equipment to make more
sheets is installed, the capacity will have been increased
over
20% to approximately 20 million tons a year of
flat rolled steel in various grades.

indicated by his consumption of gasoline that

car owner

—,fci« desire for automobile travel has not

decreased dur¬

ing the war years. As the production of new automobiles
increases, the demand for gasoline can be expected to
show further growth..

of fuel oil for the heating of homes,

:. The greater use

;

I apartments and commercial buildings
will result in an increasing demand

is continuing and
for this

product.

;

use

locomotives, heavy trucks, industrial

of diesel oil for

units and all types of construction machinery.
The industry has a substantial new construction proW gram ahead of it, part of which will be under way during 1947.
Marketing facilities, construction of which
was curtailed during the war years and restricted during
1946, must be expanded and in many instances, rebuilt.
v< More efficient distribution facilities, including product
pipe lines, will be added.
Crude oil pipe lines must be
T: extended to new producing areas as they are developed.
- Much expansion of refinery capacity will be undertaken,
A, utilizing
the technological developments of the war
;: years, and it appears that in the year ahead the trend
will be toward higher quality of gasoline and other prodpower

•

We must suffer for the destruction
and

;

/
"

^ J;.

■

-I As

while

Now

This

the

will continue the industry's

can

Steel

and

fill

for

world
the

The most difficult period

which

been created during the

has

for all

war

results

kinds of products made of steel.

"S J We all know of the pressing need
ifor new homes. This need is becoming

jmore urgent due to the increase in
»/, families during and since the war.
There is

need

for

The United States petroleum industry looks forward to
increase in the demand for its products in 1947 as
compared with 1946. The consumption during the past

science

through

expansion in the

production.
fields

utilities

advancements
is

need

transportation
enable

factors in

our

and

these

homes, commercial
plants to
heating and power.
We anticipate that, in 1947, there

buildings

;

the

public
Charles R. Hook

important

The need for steel is typically illustrated in one of
largest steel consuming markets—the Automotive,

•our

It will take &eVS|al |rears ,of"high level pro- 4

•duction to put on the highways the number of cars and
trucks that were there in 1941, not to mention the
imber that

justified by our larger popu¬
lation and increased purchasing power.
The same holds
true for a large variety of industrial and household
appliances and other consumer durable goods that go to
make up our high standard of living in this country.
I During this past year there has not been enough steel
for industries using this product to meet their produc¬
tion programs.
There were practically no inventories of
steel and the

are

products made of It in the channels of trade

at the end of the

peacetime products in large* volume than

ever

This, along with 12 million tons of steel which
a

of the coal and

result

steel

strikes

was

before.
lost

alone created

as
an

acute

shortage. The effects of these three major strikes,
not to mention others in related industries, will be felt
for a long time in this nation in a variety of ways.
Think of the many thousands of automobiles, refrig¬
erators and various articles the public so
badly needs

aircraft

oils.
eum

pro¬

products.

This

equals

the capacity

nations of the world combined.

all

the

other

One would have to be

unusually optimistic to believe this large tonnage will
not take care of our needs when the shortages as a
result of the

war

have been

overcome.

The

;

Industry is spending millions of dollars for additional processing capacity in order to get greater effi¬
ciency and lower costs.
It is estimated the steel com¬
panies will spend more than 325 million dollars for
modernization and expansion of equipment during 1946.
It is planned to spend many millions more in 1947 also.
The steel product which is probably In the
greatest
demand

in relation to

supply is sheet steel, and the
Industry is further demonstrating its confidence
as shown by its
expansion in facilities to"
increase its production of flat rolled steel.
During the war the Industry's ingot capacity was in¬
creased, but the wartime steel needs did not permit an
Steel

in the future

■

converted to oil from other

Railroads

other

and

users

The

conclusion

B. Brewster Jennings

that

petrol¬
consumption should increase.
1946 there

unusually large amount of fin*
added to inventories, partic¬
ularly in the heating fuel categories. Part of this increase

elapsed

resulted

from

latter part of

was

weather during the
from strikes in shipping,

warm
as

heavy fuel oil. It may
possible to meet the increased demand during 1947
with slightly
less refinery output within continental
United

States

than

was

obtained in

1946. This will

to exceed maximum efficient rates.

foreign operations consumption of petroleum prod¬
increasing and should reach levels substantially
in excess of those anticipated. The rehabilitation of for¬
ucts is

believe

eign plants is starting but a considerable export of pe¬
products from the United States can be counted

extent upon

troleum

air power;

air power can be maintained only through a
military procurement program of sufficient size to insure
an
adequate air -force for immediate defense and to
maintain a healthy industry which can expand rapidly
and efficiently in case of an emergency.

upon

until

larger number of these plants are rebuilt

enlarged.
The industry has continued to devote a large and in¬
creasing expenditure for research and has developed
new chemicals and products which should aid the genor

feral economy in the future.

mercial

aviation air transportation, like the aircraft
manufacturing industry, has faced great problems in
converting to peacetime activities and expanding to meet $
the mushrooming requirements of a suddenly air-con¬
scious public.
Despite the magnitude of their job, the-;
air

lines

carried

1946

passengers

and

SIGMUND JANAS

believe

Aviation

third

factor,

most important of all,

and

for its existence

many

will come face to face

contractors,

country.
the

large

nation

and

small,

can progress
a

whole

management-labor

American

stabilized

relations and toward uninterrupted

production.
If these things all work out reasonably

well, we believe

that United Aircraft will turn the corner into reasonably

satisfactory peacetime operations in 1947.
the
that

Our faith in

long-term,future of aviation is indicated by the fact
we

are

today

investing. more money than, ever* be*

fore in the research and

development necessary to main¬

tain technological leadership in the field.

aij; transportation is, on the dawning of 1947,

experienced since the cancellation: of
1934.
This present situation facing
the industry requires a realistic approach to the funda¬
mental cause of the present troubles.
Mounting labor
costs in all departments of aviation transportation, in¬
creased cost of materials and equipment must be cur¬
tailed wherever possible if the industry is not to be
throttled in its present stage of development.
airmail

scattered throughout the

with the competition of socialistic

at the lowest ebb

thousands of sub¬

toward

"-SftS*1!1

Lr.

I- •*

.■?

the

sideration to which they are entitled as America's first
line of defense in war and business ambassador in peace.

is the

and prosper only as fast

moves

are

Our industry is dependent

as upon

certified

foreign-government-operated air transportation lines.
Those Who are pioneers in American aviation have no
fear of the outcome providing they can receive from
their own government the intelligent support and con¬

others—steel, aluminum, coal,

oil, machine tools,—as well

companies

facing in the
next few months a most crucial test. Free enterprise, as
represented by the American air transportation carriers,

quality and the volume of their service.
The

transportation

United States Civil Aeronautics Board

carggp

they will further improve both the

general state of the nation.

President, Colonial Airlines, Inc.

contracts in

The solution of

these mounting costs does not lie in
increasing of* rates but rests on the ability of the
managements to increase the efficiency in operating
methods and equipment operating costs and the in¬
creasing of traffic moving by air. It will require also on
>the "part of the 'government a recognition that airmail is
no longer a taxpayers' subsidy to an airline, The Post
(Continued on page 444)
the

http://fraser.stlouisfed.org/
:*•;*
Federal Reserve Bank of St. Louis

partly because of the inventory situation and partly be¬
cause of the additional supplies anticipated from heavy
crude and fuel oil imports into the United States and
from natural gasoline and other similar products. This
is an important consideration because it indicates that
refinery runs to stills will not have to be increased dur¬
ing the year nor will crude production generally Jifve

Our progress in 1947 will depend largely on three out¬
side factors, in addition to our own efforts.
One of
course, is military procurement.
national security depends to a major

unusually
well

year as

and aircraft.

these, of

the

which decreased the demand for

ganization that had undergone more
abnormal wartime
growth
and
expansion.
This has
presented tremendous problems in
the realignment of personnel, plant
facilities, production lines, inventor¬
ies, and in fact in all phases of our
activities.
We are not yet out of the
h. m. homer....
woods, but the biggest part of the job
is dpne aiid our production lines are beginning to roll
smoothly on new postwar models of engines, propellers,

ment

Industry has the capacity to

than

homes

ished petroleum products

produced;
The American Steel

use

new

therefore, will use more diesel fuel

greater distances at higher speeds than ever before.
Iri
1947 they will put into service large numbers of new
postwar transport aircraft (a majority of them powered
by our engines and propellers), and with this new equip-

duce approximately 92 million tons of ingots a year from
which it can deliver about 65 million tons of rolled steel

engines will contiue to ex¬
pand their use of these engines and,

whole.
Our war time peak employment of
75,000 slumped sharply to
16,000
after V-J Day and has now climbed

that

well

diesel

as a

which could have been made from this steel had it been

•

built

automobiles in

1946

fuels.

The second factor is the growth and progress of com¬

war.

Industries consuming steel had been geared to produce

■

industrial

and

of oil for

use

will be

than five years of

desired objectives.

Industry.

the

was

for conversion of

most urgent need for steel.

ever

In the 16 months that have

to reach their

economy

was

what

since V-J Day, we have had to con¬
vert to peace time operations an or¬

efficient methods of

There

those

considerably in

excess of
anticipated at the begin¬
ning of the year. This was due partly
to the high rate of industrial activity, the desire of motorists to use
their cars for long-delayed pleasure
trips and the unusually large demand
year

back to 25,000.

>ital goods, industries, for plant
replacement of equipment worn out
during the war or which is now in¬

efficient

but

industry

faced by United Air¬
craft Corporation since its founding is now behind us,
and we hope that 1947 will show a substantial improve¬
ment not only in our own operating

reconstruction

vacuum

create

President, Socony-Vacuum Oil Company, Inc.

H. M. HORNER

the

can

B. BREWSTER JENNINGS

Industry has the markets that

President, United Aircraft Corporation

capacity would be fully occupied through 1947 at least.
There is a great need for steel all
over

America might rise in their pride to
show the world marvels of produc¬

Huntington

tion, and what a revivifying prosperity they
they want to.

the

second year of peacetime pro-

our

But if we

—if

products and users have the ability to pay, what
prevent utilization of its facilities in full? As I see

will play havoc in spite of the

approach

need its

; ,

war.

to realize the challenge

business for several years ahead.

duction the need for steel indicates the Steel Industry's.

come

to us of a world half-destroyed and
prostrate, looking to the United States
for leadership — not for charity —
the people of the United States of

President, The American Rolling Mill Company
:

extravagance of

could

whole manufacturers, whole¬

borrowing

out of trouble,

ahead and be prosper¬
the United States, and anyone
else, must pay expenses out of income
year by year, and keep some income
over to apply on debt, or to save for
future emergencies.

record of constantly supplying its consumers with better
«*it, there are two closely interwoven factors that might
and better products.
seriously affect steel production, and if steel production
The supply and demand factors of the oil industry
is hampered, almost all industry will be affected also.
appear to indicate a continuation of the favorable operFirst, there is a possibilty that production of steel will
ating results of the past year.
Since the industry reprebe curtailed by strikes which may be called because of
sents such an important segment of our national economy
the inability to reach an agreement on wages.
Second,
its final results for the year will depend on the level of
if wages are increased without a corresponding increase
general business activity and the economic health of the
in production per man-hour, costs will increase and
nation as a whole.
necessarily selling prices will advance. This will reduce
purchasing power and volume.
Unreasonable demands
CHARLES R. HOOK

„

...

that

our way

ous,

salers, retailers and consumers have more liquid assets
today than ever before.
If they are not dissipated by
adverse economic conditions, we have the basis for good

keen competition on quality

all know that

concluded

but that to get

billion.

have

spend is not

year's national income may reach approximately $175

;; ucts as more new capacity comes into operation.

to be hope and opportunity ahead if,

appears

V7;as seems to be the case, the voters

of course, must be accompanied by the

There is also a trend toward greater

agricultural areas.

There

evident, but the pent-up demand,
ability and desire
of the consumer to purchase if we are going to continue
to produce in large volume.
In that respect, too, the
prospects seem encouraging.
In 1940 our total national
income was around $78 billion.
This year it will prob¬
ably be close to $165 billion—more than double our last
peacetime year. If we reconcile the price rises, it is still
more than 50% higher.
It is estimated at present next

Similarly, the growing mechanization of farm operations
indicates more demand for petroleum products from the

B. G. HUNTINGTON
President, The Huntington National Bank

The need for steel is

■

Year

■

\«¥«1

-V

*<■

•/,

r'i r.i'k

;,,

'•

!Vi S''?

Number 4562

,Volume"l 65

,V»

THE COMMERCIAL & FINANCIAL CHRONICLE

trucks.

They used to build

senger-car and they
into production1 again

handled

imported or bought
elsewhere by these cooperatives.
And they enjoy this distinct ad¬
vantage that they are a non-profit
organization; so they are placed at
a very undue advantage as com¬
pared to the private industries and
it is something of concern to all

(Continued from first page)
the rubbish and

forth has been

cleared away from these bombedout areas
so
that the result is

picture of

peaceful

pursuit. *
Peoples Morale Improving

Swedish industrialists.

Therefore, I say that the morale
of the people as a whole through¬
the countries of Europe that
I visited certainly is tending def¬

ward

start, not only from the stand¬
point of the country itself but the
air of prosperity that exists in
Sweden.
There
is
no
question
about

it—they have a standard
living very comparable to our
over
here. You get into a
country where everybody is work¬
ing, modern factories of all sorts,
fine highways and a very ener¬
getic group of people. That will
hit you on the surface.

the taxation

own

there

eratives

fore the

war.

And the result is that

file is out of the question and has
to be

coop¬

have

bought for business purposes

only.
There is relatively a small per¬

centage of the population that can
afford a car for pleasure only,
because today the gasoline price
in Sweden,

much bet¬

the

was

mileage factor—the
claiming 40 miles per

gallon to the Ford's 18. That is
serious

proposition to the Swedish

Of course, something that ag¬
gravates that situation is the in¬
ability of American producers to
supply. On the other hand, I

duce

smaller

cylinder

car.

That is

compressors:

four-

Of course, all the highways of
S w ed e ft—coming back to the

But there is also a

car.

group planning to build a twoplaced for American cylinder car. These cars are going motorcycle and bicycle tradeup to October 1st in Sweden to be about the size of an Austin have their separate lanes for bi¬
■I mean the first year after the
and I do not think the American cycles throughout the country and
war.
They had on order approxi¬ producers are going to be harmed, everywhere. So, all in all, I was
mately 35,000 American cars and as they are aiming for the bicycle very favorably impressed with
up to November 1st they had re¬ and motorcycle trade in Sweden. the situation in Sweden. The only
ceived deliveries of 4,500. That is
thing that is of concern besides
Those of you who have been
the cooperatives in my mind in
about 12 or 13%
of what they
over
in Sweden know the num¬
Sweden, is this recent trade agree¬
ordered; so there is still a terrific
ber of registrations of
bicycles ment made with Russia.
demand despite these rather dis¬
That is a
and if you drive in Sweden you
trade agreement that is going to
couraging factors about gasoline
have 50 of them before and after
involve a billion Swedish crowns.
prices and other problems.
you. Yet there is probably one It is not
so much that the trade
Now, in Sweden, you have today
thing I would mention in behalf agreement is going to supply Rus¬
two manufacturers of automotive

that

were

cars

of
Car—they are
time building only in

vehicles. The Volvo
at the present

the excellent traffic conditions

Stockholm.

spent,

sia with automotive parts or small

(Continued

think,

on page

is equal to 48 cents a

gallon—our
translate

gallon,

into

our

these

speaking

approximately

figures, 48 cents

gallon.

The taxes and so forth to bring

vehicle in there, plus the greatly

increased

selling

price

cars, has
prospect of

our

to reduce the

tended

vast number of American

cars to a greater number of peo¬
ple. However, there is one favor¬
able trend, namely that the Eng¬

lish

cars

about
I

the

French

the

cars

cost

same.

noticed, it

situation—one

f;\/r ,?!'••

;./v

car
was

the American gallon. I have tried

through Sweden are building not
one, but dozens of factories to pro¬
duce goods that were formerly

•

and

in Sweden for the rank and

car

gained immensely.
When I speak of cooperatives I
am speaking of a group, a mass of
the population first that went into
the venture of pooling their pur¬
chases like our cooperative farm
ideas here. But they carry it much
further in Sweden. They carry it
practically into all walks of life
there and automotive as well, and
they are very powerful to the ex¬
tent
now
that the cooperatives

:>i,

the vehicles

in
Sweden
has
been
added to tremendously since be¬

however, one
trend. I am going to mention this
right now because this trend of
cooperatives which exists in
Sweden is also
taking hold in
other European countries, mainly
Switzerland and Denmark, and a

give us some idea how
It is very orderly to the point
emphasis they place on op¬ that it amazes one. Of
course, as
erating costs. The Scandia, a truck
you know, the highways of
of about 5 tons capacity, sells in
Sweden are excellent. They are
Sweden for 23,000 Swedish Kroner
mostly Macadam and they have
which is about $6,000.
their service shops along the way*
I notice, for the benefit of ^ the
Swedish Home Production
equipment people here, that there
They can get a like capacity are
quite a number of air com¬
American truck for about 13,000
pressors and so forth of Swedish
Kroner, or $6,000. But the Scandia make. But as to
price, I find that
is a Diesel and that makes a very
they are somewhat higher than
great difference. I thought that the American
made compressors
might be interesting to you. Now, and there is still a
preference
there is also another firm build¬
from the people I have talked to
ing a factory over there to pro¬ for the
American air

checked into the number of orders

gasoline

is,

few of the others. Swedish

there.

over

Now, I hope that it is only dur¬
ing the time that we are not able
to get cars over there, but I think
there is more than that, which
underlies the picture. First of all,

Now

But

car

much

price; so
would see

same

probably why I noticed quite a
number of cars—speaking partic¬
ularly of the passenger, cars—of
English and French make.

field of endeavor, namely

our

lovely country to

person

the
picking a
near

right back to
the
automotive picture. As you know,
prior to the war I think automo¬
tive supplies, trucks and cars, par¬
ticularly
passenger
cars,
were
close to 90% American-made in
Sweden. That trend is going down¬

well

there. Now coming

Sweden, as I took
a
little sojourn—boat this time
(I have been traveling by plane
many times)—and landed in Gotetoorg from the
Swedish Liner
Gripsholm.
Sweden

relatively

market today and I think that is

was

large

rather odd
distributor

Information and Advice

Regarding Banks' Investments

NEW HORIZONS
A

specialized facilities long main¬

timely service extended to

correspondents by the Chase

thyear

us our

tained

is the

ing investments have proved

study and analysis of

bank's

When

are

lady carried her weight in
was

in its
era.

;

alert

store

pen

year

The

depart¬

looking and

the needs of

and tomorrow

banks

throughout

Advice and information
investments is

the bank's

position and

many

only

one

of the

helpful services that

Chase National Bank offers to
its

experienced staff and

correspondents.

the

Among other services

and old, in

ever¬

correspondent hanks

Issuance of letters of credit

are:

our

Safekeeping of securities

Collection of checks, drafts and other bank documents

five

Transmission of funds abroad and

thriving neighborhoods in
20th century

today

growing hosts of depositors,
young

valuable

of thrift services

forward

made based upon

by the Chase for review¬

the country.

securities.

particular requirements.

and pad¬

99th

our

are

ment

quill
In

other

overall investment

brocade, savings bank service
lock

and

Specific recommendations

gentleman's collar

portfolio of U,"S. Gov¬

ernment

reached his sideburns and

Manhattan.

Information

Cowriesv Museum of the City of New York

credit standing

shipment of

currency

of firms and individuals

Participation in local loans when desired by correspondents
Performing

wide

range

of incidental services

Established 1848
26Cortlandt Street

41 Rockefeller Plaza

291 Broadway

60.Spring Street

THE CHASE NATIONAL BANK

743 Amsterdam Avenue

NEW YORK

Member Federal Deposit Insurance Corporation

truthfully say

horn blowing Zm
Stockholm. /There

Scandia

Now

two cars delivered in Sweden was

over

countries

other

was

the

can

and it is
a
Diesel is no law against
blowing a horn,
Cars, which I was call¬ truck, and the Diesel trucks and but the Government has requested
ing puddle jumpers to my friends busses are very prominent around the Swedish people not to blow
Stockholm, Goteborg and so forth. their horns,
over there. But the price of those

Morris

thought I would bring that out
now in Sweden because it applies

this year. arid I think I
build an excellent truck. I never heard
There is also another truck there, the streets of

They

Ford

sedan in the window and

alongside it had one of these lit¬

ter.

over 14 days in
a pas¬
Sweden and a
/going majority of that time in Stockholm

tle Morris

Losing Out

Sweden

initely upward. Now, I think the
best thing I can do is to discuss
each country as I took them in
order of visit and naturally the
one

4-door

that this Ford
American Cars

out

first

had

are

OF THE CITY OF NEW YORK
Member Federal Deposit Insurance

Corporation

445)

iTHE COMMERCIAL & FINANCIAL CHRONICLE

444

Business and Finance
stiii.

profit making
"operation; it was set up to promote communication to
all parts of the United States and; all parts of the world.
Air mail stamps are showing a most substantial profit to
the Post Office Department over and apove. all 00st$ Pf
payments to airlines for its transportation. This overage
now being shown as profit should, be used for the pur¬
pose of building the; finest air/transportation systems in
the world through the encouragement of American avia% tion transport companies. - y .&
.
Office Department was never set up as a

aircraft

Certain

without

are

manufacturers

equal

in the

fellowman,

belief in honesty and integrity to

I believe that 1947 will be

through

They can

periods

economic

phonographs
who

now

0ur organization looks forward with optimism to the
year 1947. Our business is a well diversified one includ¬

reaching

are

had

Thousands

been

them

Growing

ing foods, vegetable oil processing and refining, paints
and varnishes, chemicals and pig¬

consumer

believe

further

essen¬

also

the

de-;

pentup

there is

for

mand

tremendous

margarines,

shortening,

During

plied with

records

latest popular

are

facilities

conflict

result of

•

was

the'/industry,

reduced to

decrease in labor

disturbances, the automotive
industry will find its problem of getting
greatly reduced,

well

;

return

work

disturbance.

Looking ahead to
<

•!,j

(

ov.wllj3

coining

than

year

ii'has in

1947 should be

the past. 4

good year. The future alone will tell
a

good, year;

F,; M. LAW
Chairman of the Board, First National Batik In Houston
The year just closed ;didn't turn out

well

most of

'"vM<

1947|on the . whole -offers an pfey
couraging | outlook. !The
foreign .,

fl?

- •

^"rt wUi^oXlll ^giV^Vthe
United Natiorisy Secretary B^rries

naturKfeasi

i^^

fortunate in ] having .woir the- con? ■;

and ^

p^icu^rly; to

areas

in areas where'
is extremely high. In the

'large|^n<iiistrM

the United States, however, coal still ! remains

?they|h^ey and.^xpect;/'^
;i(dcme?.i3y^ti%chew;fR<^bii(^

! the cheapest and most satisfactory source of power, and

gress.y We may iibt get a' 20% reduc¬

This is also true in foreign countries and T bo-

Surely it will not'be/less dhan? 10%v !

sevejrab years fo

The Republicans are committed to

energy.
•

thought It would. There.were too many minus, factors,
the major one of wfrich/tyas the stQppageof production

us
-

interruptions in production caused by
strikes will mean the loss ofconsiderable
be-

No doubt the

niajdr-ebinpetltors.

indicatesRvtKe^b^ii^inijypLy;1^^

and labor in all industries.

our

1^7*it-^em^d/mp /tftere

With this out of the TOy^e will mny be on; the highroad to good times. I believe that labor will realize the
need of production, and that our national capacity iwjll
be used much more, advantageously during the

changes for the future In relations between management

hope that we will work out of this situa¬
tion which today might appear
ominus, without too great

The recent strike of the coal miners and the final de- i
to

course,

I have every

can,

the privileges

which will, of

stimulate full employment/.

coal
y

materials

raw

which they enjoy.- under40tff;;AdPe^yau&t#:St^

cision

ab¬

If that desire dcondition exists, Midland will operate
capacity for an indefinite period ahead. Not only wilt

With

ope? bf?pu£Mbst
serious problems. I■{eel?!:&rixi£ent,'
however, that the American *pebple
through their government vrill cause
sponsibility

are

will take fresh and vigorous
will begin to eat into the accu¬
we

Midland be in that invaluable

confideiibe;yLahof

ican Way of Life.

of the coal

the shortages in materials

sup¬

their

all labor leaders^ to realize their re-

Frank F. Kolbe

earth and the brains and'"know how." The

this conflict

1947,

strides forward, and we

■

substantial number remains to

be filled.

whether it will be

feelirig of

thd

; of

the books

the dealers will be canceled,

very

relations have been

disadvantage of both labor and management. A natural

we' in

some

mulation of unfilled wants.

therefore, face

the

management nnd labor .left neither
with an
advantage;
The spiral
of increased costs
absorbed the gains in dollar exchange.. Politics
already
in the field of economics entered the
struggle to the

think

with

between

that

position; but every other
supplier of automotive parts and accessories, together
with the automobile companies
themselves, will furnish
full employment at good wages.
,
j

'Allies combined and half|of ;the
produced in
r

Although there can; be

doubt' but

If strikes and other labor troubles

•

perform

Kulas

solute minimum in

The

In spite of this during
anH t.h#» vear 1946 thp Industrv nroand the year 1946 the Industry pro
duced more coal. than? all jpf our

were

officeholders

of these

they must be

lot of things to ourselves in 1946, !We started
the year with everything in our favor, a recognized de¬
mand for goods,
the greatest wealth in production

We did

industry has passed through the difficult and
trying war years and a rather hectic time during the past
12 months. Strikes, government controls, extreme difficulty in securing necessary machin¬
ery and equipment, and other problems have seriously interfered with

in the garage.-

use¬

and accessory

the hoped for prosperity. During the War years;

instead

"hits"

future.

orders which have been

The coal

representa¬
tives of the people as a whole who
George B. Judson
are the government will be; the con/
trolling force of only those few rwho
follow false prophets and the outright straight-thinking
American will again demdnd-good government ftorn his
officeholders instead of two chickens in the pot or three
cars

the

little

use

pushed further and further into

was

FRANK F. KOLBE

largely em¬
ployed in war financing. They did
a good job and are now ready and
prepared to do an equally good job
for industry. The year 1946 was a
disappointment to many. The year
1947 will in my opinion be a disap¬
pointment to many, it will be a
period of re-learning true values, a
recognition by many that their con¬
tribution, however small, is needed
if we are to achieve our
hopes. The
■illusion that a man can get some¬
thing for. nothing will fade.
The

These include educa¬

by the wide

thd

land is especially concerned. During
1946 the delivery date of automobiles

they listen and enjoy.

MidT

It is

stimulating departures

constantly recurring
the

President, Wabeek State Bank of Detroit

created

y This is particularly true 'in
automotive industry, in which

high gear in the production of "juke boxes"

The banking structure of the nation starts the year
1947 with its house in order, liquid, and prepared to do

that

and

recordings.

pioneer in this expansion in the

complete. Indus¬
ahead at top speecf
goods of all kinds,
industry and from con¬

from

sumers.

President, The.United Electric Coal Companies

GEORGE B. JUDSON

belief

both

function.

the particular lines! of business in
Which our company is engaged, the percentage of cost
of labor to finished product is extremely low so that
the labor problem is not-as serious with our organization
as it is in thoseindustries; in whichi the? post • of- labor
constitutes a large proportion of the finished cost.

government

for

facilities

brought

entertainment

demand

new

Reconversion

try is ready to

high rate is expected to continue in 1947.

machines is

Adrian D.

there

their

disturbances.

demand

Joyce
in these plants. The
has been a great
shortage in paint and varnish materials during the war
years indicates that it will be very difficult to supply the
demand during 1947.
^

its part in

our
possible purchasing power was
dissipated in 1946 as a result of labor

^u,..5.

Jack Kapp

and this

be produced

Fortunately,

,v,«

1946 makers of coin-operated record players

moved into

demand for all of the materials that

We enter 1947 with a
potential outlook for excellent
business and general prosperity.
The demand for goods is still strong although some of

fulness of recorded material.

Division is

that

giving impetus to

Decca has been

de¬

assured of a good
of raw materials and it is
apparent there will be a growing

fact

I believe in

to fill the need for

cially for children, who learn

supply

can

the

Samuel Kipnis

fair wages to
employees, in good unions
honestly administered, in enlightenment and cooperation
between Labor and
Management, for only that will cre¬
ate more
prosperity in our great country.

tional and literary recordings and those prepared espe¬

salad dressings and other vegetable
oil products. The Chemical and Pig¬
ment

sorely

years to reach a normal basis of sup¬

from the field of "popular" music.

mand for all of our products will
keep our plants operating at capacity
throughout the year. In the Food
Division

increases

thereby
so

E. J. KULAS

home

and

items

ply and demand.

high cost of diversion outside the home, is resulting in

items.

that

the

years.

war

emphasis

about by the return of men and women from war and the

ments, Naval Stores and metals re¬

tial

through the

peacefully
all

President, The Midland Steel Products Company

people
buy

unable

are

phonographs and phono¬
graph radio combinations will play
a
major part in increasing the de¬
records.

by us and other countries
which production will
probably take

for

now

needed

the industry itself, the high
being attained in the manu¬

mand

accustomed to enjoying the
world has created or will

live

can

In addition to the favorable factors

levels

party is at
Capitol Hill. One hun¬
forty * million Americans

are not going to regress
primitive ways of living..-,

produce

facture

America

I believe that Labor and
Manage¬
ment will find a
way whereby they

Discounting
unforeseen
difficulties, the industry will be able
to operate at the highest production
rate in its history, which indicates
profitable operations.

Company

and

outlook

within

political

create,

available.

ADRIAN D. JOYCE

interested

which

the

1947 will show substantial profits.

are

United States of

best

must cooperate and work to

goal.

our

others into

the helm on

for the phonograph record industry in
highly favorable because, for the first time in
more than five years, production potential can begin to
approach the still growing public
'
demand for records.
Plant capacity
has been increased, raw materials
are
at
hand, skilled workers are

panies will have met most of their present problems and
them and the earnings of the airlines in

and

past

are

1947

I surmounted

which

the

matter

President, Decca Records, Inc.

trade of the United States is to be main¬
an indispensable requisite.
It is my
opinion that by the middle of 1947 the aviation com-

lines

of the

We have been

well

depression in the very near future.
I am optimistic about the future

dred

The

If the foreign

varied

stress

themselves

tained aviation is

the

JACK KAPP

months.

test year.

good for

years to come, especially in our industry, where
production is not in sight, in spite of the experts
who deliberately are, trying to talk
,,
»

new

who

achieve

it is our intention
to buy two used DC-4's for; this operation. Since the
market on DC-4's is dropping rapidly, we have delayed
making an effort to purchase any. We believe further
reductions can be expected in the next two or three

All

lives like

our

It is my opinion that business should be
very
many

re¬

should do it again but we

In reference to the Bermuda^ route,

fining.

SAMUEL KIPNIS
President, National Container Corporation

emerged to greater heights by hard work and effort. We

competitive efforts of manufacturers in other coun¬
but to succeed in doing this, they must have a
market for their planes.
The United States aviation
transport companies must prosper in order to be in a po¬
sition to acquire newest equipment available, In order
for the aircraft manufacturers, the airlines and Amer¬
ican business to take advantage of the postwar markets
more foresight and business-acumen must be shown by
government authorities regulating aviation. There are
indications that such a policy will be forthcoming.

Glidden

stand-

Almighty
God, we will emerge as the most prosperous people on
earth capable of fulfilling the hopes of the rest df the
world by our aid and example.

tries

The

cancer, and with a restoration of our faith in

any

President,

0-.':

place the distrust which has eaten into

United States

anywhere in the world.

production at times to almost

our

;

We will adjust ourselves with a maximum effort on
everyone's part, an honest determination to be fair to
our

be relied upon to manufacture airplanes which will meet

;

Speuks After the Turn of the Year

which slowed

(Continued from page 442)

Thursday, January 23, 1947

lieve the United States will continue for
>se

natiolKki^reh^S

1be the cbiei SOurce °f own countries., We
SUPP'y for th0se
ing coal outside their
.

-j

•

tion

■

•

personal ' income; taxeS, " but '

lion and here

agsm

produced in the United States for the next few years.

"H*"'* 1"

there will,.be.a .measure, at least, of

s^uld^the^e-^- bipartisan; ^etiori?! Gbverhniei^y capital

fore, look forward to a good market for most* of the coal

F. M. Law

thin ever before;have

cbide

and labor
daxthe! coriclhsion that

(Continued oh page 4|6)

!stoe

Number 4562

yolunje 165

THE COMMERCIAL & FINANCIAL
CHRONICLE

'■■■&:

!:-v

nish Mark is bgd.Tiresare being

(Continued from page 443)
It is basic
materials. But what is probably-

manufactured in Finland and have

going to help us here and harm
the Swedish producers is the fact

battery manufacturers have
started
in Finland. There is a

been since 1935. Since

1944, three

materials

tremendous shortage of parts for

keep the factories of
Sweden going and to keep their

automobiles and trucks. They par¬

basic

the

that

needed

South America is
there because those
materials are going to

promises
simply
basic

raw

not

raw

Russia, a good part of them;
so
Sweden already has found a
very
sad repercussion from - the
go to

in the country.
early prom¬
ise of relief in Finland although
I understand they are granted a
they

have

And I cannot

see any

few dollars for the most essential

South American trade for prom¬

things they need to keep up cer¬

cannot fulfill due
to this agreement that they made
there. So it is a very unpopular

tain economic units.

ises

that

they

Swedish in¬

agreement with the
dustrialists.

amazed

was

stolidness

the

Finland.

types

The

Coming over to Finland, I am
sorry to say that this is one of the
sad parts about my trip to see
situation

some

the

some

which

materials

due

of you members,
orders for

some

received

would

Finland

the

Probably
have

that

screening

government

situation.

very, very closely to see that the
few dollars available will go into

such

products

economic

keep

structure

essential

their

the

most

items.

people of Finland, considering the
times
which
they are

terrible

Norway

passing through today. There is
very little of anything that a per¬
son can get in Finland in the way

Coming over to Norway: (I do
not say
this on account of the
fact that I was originally a native
of foodstuffs and so forth. Butter
of Norway), but they
certainly
is not to be had. Eggs are not to
have made a rapid stride in their
toe had. Meat is not to be had, and
recovery. The food situation
is,
things like that. And you go along of course, changed to a
point
and see these beautiful stores in
where everyone has enough; prob¬
Helsingfors, which was called the ably not in as great a variation as
"White City of the World, one of
they used to have, but foodstuffs
the most beautiful cities there is
are coming in faster and faster so
—you see these beautiful depart¬ there
is no complaint at all on
ment stores and all you
see is that end.
wood and paper things, home¬
There again; in the automotive
made, to fill up the/store windows.
That is the situation due to the field, while there were a number
of
American
units
shipped
in
reparations they are paying Rus¬
sia and I was a dittle hesitant 1946, they are still under strict
is
about saying so, but after all your rationing insofar as gasoline
concerned and as far as the dollar
inner feelings get'the better of
allocation for automobiles is con¬
your discretion; so I will say that
cerned. Gas is only given to those
the reparations are being inter¬

all but

was

our

government, It has to do with
the limitation placed by our gov-.'

demqlished—practically.every

bridge bombed out 'and roads as ernmerit .on'American travelers
ple seem to have plenty of every¬ well as airports were
destroyed. into Switzerland as to the amount
thing* But they have little or no As a result, they find it
necessary of dollars they can cash in a given!
dollars to spare. In fact, they have to have
very rigid restrictions. period. You are limited to a max-:/
little or no dollars—period.
Their situation is further
aggra¬ imum of $125 per week. Now 1
vated by the trouble they are ex¬ would like to ask the official
They also, as you know, right
ol, ;
after

the

had

war

tremendous

surplus.-Sterling That Sterling
ticularly stress garage equipment
was dissipated in
something like
as being one of the most critical
items

"f "•>

445

transportation system

An Economic Picture of Europe
miscellaneous " items.

.rrV-KV*'-

six months.

They now owe Eng¬
something like 50,000,000 Da¬

land

periencing with their colonial

em¬

this governmental group that sets
pire in the Dutch East Indies, But such a limit how an American
now, fortunately* since the settle¬ business man
going into Switzerment of this Indonesian problem—
to some extent, at least—the af¬

land

fairs

assinine and

is that some of that enthusi¬
has temporarily, at least, died
down. I noticed a few weeks ago

Holland

asm

that

the

sion,
for

British

Trade

Commis¬

with

Denmark

negotiating

continuance

their

Food

Purchase

Agreement, had failed.
know, the British had con¬
for practically all of the

As you
tracted

surplus

foodstuffs

Denmark,

consisting of such things
ter,

etc.

eggs,

They

but¬

purchased

will

helped

greatly.

Switzerland
The

country I visited

trucks, that

tiality. i

Finland.
While

can

prove

cars

essen¬

;

these

at favorable

sold

them

countries.
Denmark

may

other

re¬

European

quite likely that
take

now

the

country.

Everyone

working and enjoys

plane of living. It is

one

Sweden, that

have

can

tion

high

very

country,

they

say

exchange problem what¬

direct

the

countries rather
all to

England. This may improve

the situation for

insofar

dol¬

has

and

practically

that

surplus of

mention.

fact,

every

c a n

you

dollar bill in

today

ever,

get

you

try' to

coming to Holland. As
know,

you

leave

everything

Swiss

credit

ethical

rate

that

going

checks

case—so

Switzerland,

not cash dollars—take

lers'

means

travellers'

travel¬

letter of

credit.

number

summer

tourists

and

they figure by next

summer

they

there is under very tight restric¬

Speaking of this monetary subject,

open

tions.

there

basis

1946, 100 Crowns in
toought
45,000
Finnish

When I
dish

Finnish

there 100 Swe¬

over

was

Crowns

Sweden
Marks.

demanded

Marks.

They

15,000
under

are

strict gasoline rationing, only for
•essential use, and, of course, there

toave been absolutely no new cars
imported imo Finland since the

much

whereby

lotment

gasoline al¬

some

will

course,

now

astated

available

country

during

that

you

are

was

well

dev¬

one

thing I

to mention here. I

for

pleasure driving.

Switzerland^ due tp the lack

The

manipulations
to

a u

m 0

<to remain.

picture irt

v.e

francs

them. The result is that they have
a
tremendous inflation. January

will

passport

of money, or engage in some un¬

they have to honor the

3.17

tions for Russia are disastrous to

your

undertake :tP

Switzerland

get the rate of 4.25 by

letter

official

undoubtedly

currency

anyone

Holland
Now

Switzerland

conceivable

checks

exchange is concerned.

economic

entered

dp, somethings/about itIn correcting/thissituation
it forces, the business man to either,
surplus of dollars, Sterling
except

soever,

cash

and ;whenr: you have reached the;
limit of $125 you cannot cash any- M
more until the week has. expired.
I hope that our government will

Switzerland is yery gopcb t visitedt
for your dollar, whereas the of¬ more -towns/dn Switzerland^ than;,
other
Europeap
any ot^t&country hi &rope. The
than selling them ficial rate is 4.25. You do, how¬

exporting these foodstuffs

have

they

own

prices and

task of

lar

They expect a release of this
freedom of
policies, the situation shortly, however. They
demands made by > the require-, expect the release will be in time
ments of fulfilling these repara¬ to take care of the expected large
their

of his

The control works op the basis
whereby you take your passport
into the bank and get your travel*-„
lerg* checks cashed. Each traiisac^f/

was

Switzerland. This is another very
normal

to pure a situation

now

business establishments with

care

$125 per week.

It te
undoubtedly was set
brought about t
In view of the tight restrictions by tourists and opportunists who panes ,and the, English brethren. that exist in
In other words, there was a
Holland, I am very went into Switzerland and,
period
there of unrestricted trade with optimistic that when they do come through exchange manipulations,
out of this period, they will come were able to live there for prac¬
Great Britain, and
speaking to
the Danes, they were a little dis¬ out faster than anybody else. They tically nothing and make a profit.
appointed in the way Great Brit¬ have always been a very industri¬ But*;in/trying to cure this situa- "
ous people and their
ain took care of them
requirements tion, they forgot the business man
during that
are tremendous in the automotive
time.
entirely. I fully agree with them ;
field. They need practically ev¬ about' stopping the tourists and.
According to reports from vari¬
erything, /including busses and opportunists from carrying on the i
ous;; people in Denmark, British trucks of
all types,
parts and exchange manipulations that they ;
suppliers shipped them a lot of
equipment. There is a great need have been doing. However, the|.
obsolete and inferior goods at high
for automotive parts and equip¬ business
man.
should not hav&y
prices.
ment just to take care of their ex¬ been placed in this category bui
.Denmark prior to the war was isting rolling stock.
special
attention
should
have
been given tp him. ;/
pro-British and my observation
nish Crowns and the
story of that
a little bad taste with the

has left

preted by the Russians in such a
way that' it is most harmful to

live and take

can

business

the

Their

war.

the

ears

would

story

the

everywhere.

same

took

into / their

pie

stores end./showed me

where stor^
absolutely

shelves were

age

empty. Then they showed
of

stack

orders

for

the

automotive

parts and equipment which they
have

When

hope it reaches

was

Distributors

fill.
asked

what the compar¬

ison is between their present busi-

of the proper officials of

(Continued

page 447)

I will say
very

this: They' have been
far-sighted in the automotive

parts and equipment field and I
think

that

indicated

was

the

amount of orders that you people

STATEMENT AS

have received. I know I talked to

war.

importer who got dollars al¬
located for parts and equipment
this year, I think, equal to some¬
thing like 80%
of his prewar
normal allotments. That, I would
say, has been a rapid stride for¬

OF DECEMBER 31, 1946

one

They have, however, been for¬
tunate in securing 1000 GM trucks

surplus. Ford, through some ar¬
rangement to help Finland out on
an
English deal, got permission
for 600 Ford trucks to go to, Fin-

Hand

from

And

America.

that, there is

besides

show

Studebakers and others that went

Norway's

there; so I would say there are
2,000 or 2,500 American units of
trucks registered
in Finland in
1946.
So today their are approxi¬
mately 23,000 trucks operating in
Finland.

Before

the

there

war

29,000

passenger cars and
there are 7,000 left; 5,000
Were
completely
destroyed
or
confiscated during the war. The
were

today

others

are

either

laid

ac¬

improvement

well

paper

and pulp industry

her fishing

rapidly

regaining

Their

industry

fleet

you

ping fleet during the
always

provided

large part
while

this

of their
is

war,

them

which

with

being

rapidly

But

sels

degree that they cannot
There
turers

friends

are

some

use

the

them.

local manufac¬

Finland.

there,

One

engaged

our

in the

takes

and

quite

contracts

and

revenue

«dn account of the non-essentiality.
out

still

know

Norway is building 10,000 ton

worn

U. S. Government Securities

Other

122,693,861.26

re¬

Deposits

$190,253,213.74

5,141,689.27
253,297,093.62

Total

$258,438,782.89

Deposits

Other Securities

15,207,483.97

Accrued

Demand Loans

27,522,098.64

352,259.67

Unearned Discount

16,353,122.23

Time Collateral Loans

1,038,161.6$

Taxes, Interest, etc

Reserve for Dividend

Payable Jan. 2, 1947

Acceptances Executed

142,187.50

....

2,057,849.19

36,888,876.22

70,920,177.27
Banking Houses

2,465,208.13

Customers' Liability under Acceptances

1,985,578.86

Accrued Interest Receivable

Capital Stock (par value $20.00)
Surplus

5,687,500.00
10,000,000.00

Undivided Profits

2,941,598.63

18,629,098.63

364,483.88

Other Resources

64,293.91

Reserves

1,747,738.59

$282,406,078.02

ves¬

$282,406,078.03

been

placed with Holland, England and
Italy

I would say that the pic¬

ture looks relatively

bright from
■

manufacture of obsolete parts for
and

trucks

1932

vintage
and over. They are made there to
keep those cars rolling. The prices
of parts are tremendously high—
just to give you some idea, local
piston rings manufactured in Fin¬
cars

land > today

f ar©

up 900% over
those imported from

1939, while
America are up 609%. ■1

The-increase is mostly -due "to
inflated Finnish Mark. The

the

standpoint of trade with the

United States.

■

stop

Here is another

the

was

V //Jpy-

■'

National BanksSnd Trust Company
Denmark.

country that from

PHILADELPHIA

standpoint of U. S. exports of

Established 1858

automotive products, I am not too

optimistic. It is not in

any way

your

fee; compared/with Finland. Den¬

result of the inflation in the Fin¬

mark has

Corn IMhange

Denmark

plenty of food and

peo¬

MEMBER

4,005,746.27

Less: Acceptances Held in Portfolio 1,947,897.09

6,509,202.41

Bills Discounted

while.

have

Deposits.... $

State, County & Municipal Securities 1,145,638.26

they lost 50% of their entire ship¬

placed,

are

U. S. Government

$ 67,559,352.48

are

levels.

prewar

commercial

standard.

below

because

count of the lack of parts or they
are
not allowed
to drive
them

some

Dug from Banks

ward and I think it will continue

lesser amount of

LIABILITIES

RESOURCES

Cash &

FEDERAL

DEPOSIT

;

INSURANCE

CORPORATION

THE COMMERCIAL & FINANCIAL CHRONICLE

446

Business and Finance
(Continued from page 444)
hurts all concerned and that it is entirely possible to
avoid such if both sides will agree to treat each other

during 1947, if

will

Moderation and

be necessary.

•

understanding in. large doses
-

X ' VX

•

Reconversion has been largely accomplished. Now weu
readjustment and this program will con¬

must deal with

with the firm conviction that a standard of
be purchased, but must be

pression. There may well be duringl947 one of more
periods of mild recession.
In the Houston

area

see

bankers and businessmen

alike avoiding courses of extravagance or over-exten¬
sion. Caution is in evidence everywhere. Our banks, as
elsewhere throughout the

country, have experienced a

very

substantial increase in the

and

ment

demand for loans and

it is being demonstrated that the govern¬

lending agencies

bow out of the picture with¬

can

out detriment to the public welfare.
In a word, 1947 will have difficulties;
some

it may have

minor setbacks, but the domestic and foreign cte-

?mand for goods; the soundness and constructive policies
of

banks; the know-how which industry so brilliantly
demonstrated during the war, all seem to warrant the
opinion that this year will give a good account of itself.

living cannot

ELMER L. LINDSETH

president, The Cleveland Electric Illuminating Company
the

Since

committed

ended,

war

themselves

$200,000,000
over
32,000
Northeast

industrial

jobs

160 companies have
altogether more than

about
invest

to.

facilities

will

which

create

and

Cleveland

Ohio, the

area which The
Illuminating Co.
nationally as "the best

sumption in this country has been—

M. ALBERT LINTON

1940

advertises

1946 was a good one for the production of
new, and the conservation of old, life insurance.
New
business increased by an estimated 47% over 1945 to a
new record high of $23.5 billion; and
outstanding insurance increased by
nearly 12% to another record high of
$174 billion, with the total number
of
policyholders
standing
in the
neighborhood of 73 million. The most
difficult problems were encountered
field

the

interest

large quantities
rubbers-consuming countries.

continued to

that the

location

the

nation"

for

I This

industrial development
will bring with it commercial and
residential
dous

era

development,

of new

1946
in
M.

types*?"...
As

result

this

expected

de¬

Cleveland

and

Northeast

Ohio

back-log

replacement

ity tires.
Unit replacement tires were
proximately 55,000,000 in 1946
to

compared
,

erators

1949.

One of these gen¬

scheduled for installation in
Cost

1948, the other
generators, including housing,
equipment will be approximately

these

boilers and accessory

$25,000,000.
-

^ The

company's three-year construction budget, includ¬
ing this $25,000,000 item, will exceed $43,000,000.
( We naturally are concerned with what might happen
to the general level of business. But we just will not
gamble

recession.

on a

We have assumed the

responsibility for building ade¬

quate power facilities for this area, and we mean to do
the job, no matter how much it costs. It is our obligation
to the community, and we mean to

I Net output of

discharge it.

generating plants during 1946, the
below that in
expect that net output in 1947 will exceed
our

first full peacetime year, was about 10%

1945, but
that of

1946.

Budget balancing, accompanied by reasonable tax
reduction, comes next in importance. .In considering tax
reduction due weight should be given Ho the; fact that
decreased rates of taxation may produce a greater vol¬
ume of taxes than higher rates, because of the stimula¬
tion which tax reduction gives to production.
constructive

More and

electricity is being used in the homes
Northeast

Ohio, and during 1946 new electrical consumption rec¬
were

set

by all classes of ultimate consumers except

railroads and factories.

! Residential customers used
of

electricity each during the

average

This was
the previous year, and set

1415 units

increase
of 114 units over
an all-time
high for this area. Meanwhile, the average price per
unit supplied for home use continued to fall, going down
year.

X '*
"

^ although during the same period, according to the con¬
sumers' price index of,the United States Bureau of
Labor Statistics, the cost of living in the Cleveland area
39%.

;

i The expansions contemplated by the Illuminating Co.
and many other industries in the 1700-square-mile area
which we serve are presently hampered by nation-wide
shortages of materials and equipment.

This area's great program of construction and progress,
and the nation-wide

opportunities and improved stand¬
ard of living which should accompany high level employment and business activity, can be realized only
through a substantial increase in productivity throughout
industry.
.
To
I

be taken promptly in the

can

these two fields,

banner year for life insurance

the electrical industry, this new year of

particularly significant

the

Centennial

1947 is
of Thomas

Alva Edison's birth in Milan, Ohio.
Mr. Edison once said, "My philosophy of life: Work.
Bringing out the secrets of nature and applying them
lor, the happiness of man.
Looking on the bright side

demahd conditions which
are returning gradually
to the rayon textile industry,
coupled with relaxation of artificial and maladjusting
controls, assure a healthy basis for
the further expansion which is inMore

normal

supply

everything."

all-time

sales

high,

continuing

are

however,

and

the

demand

for

quality

chandise will exceed the
Even before the

war

;

each year is seeing an increase in
and urban delivery.
The

cross-country freight

•

;

production of trucks in 1946 broke all peace-time ;
and should approximate 1,000,000 in 1947.

records

A very

satisfactory level of production of truck tires
expected in 1947, although somewhat below the level

of 1946.
''

The

importance and rapidly expanding market for
tractor and implement tires is reflected in current pro¬
duction compared to pre-war as follows:
TIRE

PRODUCTION

1,488,000

2,102,000
4,600,000

1946

Continued progress toward
and

mechanization on the farm,

with high levels of demand for food stuffs
crops, point to a high volume of farm tire produc¬

together
tion in

1947.

sjs

sweeping conversion of the rubber in¬

lowing Pearl Harbor was matched by the swiftness of
the industry's reconversion to peace-time production
following VJ-Day. No other large industry has matched
the record of reconversion which is reflected in the fol¬

mer¬

supply for

the supply of

lowing figures of tire production:

less than the existing der
during the war many im¬
provements and new fabric adapta-i
tions were worked out.
Expansion ,

Year 1941

Year 1946

Increase

Passenger tires

50,000,000

66,500,000

33%

Truck-bus tires

Farm

11,700,000
15,800,000
2,100,000;
4,800,000

35
128

170,000

260,000

63,970,000

87,360,000

rayon was
mand and

facilities during the
years was almost entirely for
cord production so that today,
the
substantially
stepped-up
mand, there is very little more
rayon

war

tire
with
de¬
rayon

ness

will

soon

Spencer Love

Total tires

available for the

At the same time, busi¬
have to eliminate from its thinking the

fabric trade than before the war.
"false" psychology of the

tires

Airplane tires
J.

"sellers' market."

—

The current level of
of

36%

production is at an all-time peak

76,000,000 passenger tires, annnually and

17,000,000

the annual rate is approaching

truck tires.

once again are insisting on quality at a
price which is an especially good sign for
those companies which have always sought to improve
their products.

For all tires,

100,000,000.

The rubber industy may be the first of the

Consumers

reasonable

Chairman of the Board, The Goodyear
The rubber industry,

durable

goods

industries

satisfy

the

replacement

famine.-

Every tire produced since VJ-DAY has immediately,

P. W. LITCHFIELD

moved

Tire & Rubber Co.
.

in the year just closed, enjoyed

sumption of rubber (natural and manufactured) reached

other

war goods to' and from industry, vat highspeeds, over
long hauls and with considerable overloading,; resulted
in a replacement demand in 1946 of about 10,500,000
truck and bus tires as compared to 5,500,000 in 1941
and 4,300,000 in 1940. i
.
X '
1
Truck transportation continues at high levels and

and

time to come.

some

dustry to the production of planes, guns, ammunition ;
other war products in the days prior to and fol¬

needs of many foreign countries are
still to be met. It is likely, therefore,

that

>T ;Xxvx

The swift and

development of

at an

many

atomic energy and in many

Litchfield

The great increase during the war in truck transport;

and

evitable.
Retail

FARM

In this age of research and technological progress, the
outlook for bringing out the secrets of nature, through
uses of

••

J. SPENCER LOVE

500,000 in 1946.

President, Burlington Mills Corporation

?. Since 1939, the average price of current furnished by
the company for residential users has decreased 17%,

rose

our power

and business establishments of Cleveland and

ords

action

1947 should be another
production and conserva¬
tion, with new records hung up. The stimulation of
general business which also would follow such a pro¬
gram could conceivably lead to a demand for capital,
both in the construction field and in industry, which
would be large in relation to the available savings of the
country. Hence, a stiffening of long-term interest rates
might follow—a development that would be stimulating
to the country generally, as well as helpful to life insur¬
ance policyholders because of the beneficial effect upon

New Year in

plants in the
next 12 months will approximate twice that of 1939,
but will be less than we produced in the peak wartime
year of 1944.
r

33,000,000 average for the years 1939-41. Backlog needsyet have not been satisfied, but more normal condi- ;

the source

the cost of their insurance.

f It is estimated that output of

demand

pre-war

ap¬

high standard of living is increased
tions are expected by the second quarter of 1947.
X
:
production accompanied by a steadily increasing effici¬
Replacement Remand in 1947, including some restora- "
ency. The gains from such a program- should be applied
tion of dealers stocks, should approach 40,000,000 pas~v
first to reduce prices to consumers. ^This would increase
senger jtires,'7
^;'X,
' ;
'
everybody's purchasing power and,,dO< more to .stimulate
Vifjith 0 tire$ each re<^iro$ f6r a possible 4,000,000 new <
prosperity than anything else we could do. Reasonable ^^rbd^jKoh :ih'an'
X
increases in wages to groups responsible for the in--.
TO£yfa$tuwjr§* stocfo,
of passenger tires
creased production and efficiency would also be in order
should, fall between 60-65,000,000 as compared to 66,but secondary in importance to price: reduction. ■■■■-•,
:

Lindseth

business,

composed entirely of first-line quail-

Elmer

$3 billion in
$1V2 billion

of dollar sales is
result of an abnormal

the

•

succeeding years.
The company has on order two
90,000-kilowatt turbogenerators for
installation in its Avon power plant.

manufactured

doubling

largely

1947 and

1940

compared

velopment, the Illuminating Co. is
preparing for a sustained high level
Of
business
activity
throughout

and

approximate

1941.

The

Linton

of prosperity and a

construction of all

is for rubber

Net sales of rubber manufacturers

should

period of
sustained prosperity which we can
realize provided we have the cour¬
age and ability to manage our af¬
fairs properly.
a

campaign to teach the fundamental truth that

tremen¬

natural

portions.

legislation to restore the balance between labor and
management, dealing fairly, but not punitively, with
either side.
Along with this should go an educational

new

outlook

and industry'

rubbers may be in about equal pro¬

the domestic problems in 1947 is, of
the labor situation. The major immediate task
for the new Congress is the enactment of constructive

many

1947

of which

with several unknowns. Fundamen¬

exist for

used by all allied

consumption again to be in the'
neighborhood of 1,000,000 long tons,

re¬

Attempting to forecast what may
in
1947 is like asking the
mathematician to solve an equation
conditions

were

The needs of the rubber-starved public
have as yet not been fully filled, so

duce income.

tal

760,000

In addition,

where

investments,

rates

8,000
19,000
171,000
565,000
694,000

1944__

course,

industries.

2,000 long tons

1941—

The year

Foremost among

Cleveland Electric

799,000

Of interest is the war-born
synthetic or manufactured
rubber contribution to our war and peace economy. Con¬

produced.

President, Provident Mutual Life Insurance Co. of Phila.

low

and

651,000 long tons
783,000 ►

1945-

fellow men,

occur

IgI

1199442365

1940

1941

Mr, Edison's

sume most of

all-time high of slightly over 1,000,000 long tons,

accomplished in business and industry

everyone concerned follows
advice and works in cooperation with his

the current year. There seems to be no
sound reason for expecting a prolonged or serious de-

compares with previous records of—

very bright.
Much can be

fairly.

23^ 1947

Speaks Afler the Turn of the Year
and applying them for the happiness of man,

ways,

THtir sday,; ^nuairy;

all-time records in production and sales.

Con-

to consumers.

When this war pent-up demand is made up and in-

yentory. pipe lines approach normal, the; present ab-;
normal production rate will be reduced, of
(Continued on page 448)

course! These

'Jy T

Volume 165 ^Number 4562

447

THE COMMERCIAL & FINANCIAL CHRONICLE
;

An Economic Picture oi Europe
(Continued from

popular with, all business people
and.:as you know, they are, extend¬
,

ing it into several industries.

Casper & Mader With
kF. Bernheimer Co.

A of

things, because local manufac¬ ^ in 1946 with 117%. I person¬
My thought is that nationaliza¬
ally do not think they are going to
D. F, Bernheimer & Co., Inc., 42
turing took care of it.
«
exceed the 111 % mark ia 1947 tion of the coal industry could
sweria were *
Broadway, New York City? an•Butvrertaixtfy^U
because: i/Qf, the situation in their RQt be any worse than the coal
jjamelyr that
ere;^e&& much,
cover, they; have got to do some¬ coal;
hbunco that Harry D. Casper and
more
business
now.
:ittdustry .today.;, • ^
However,
A'%
industry of Englaixd has been in
thing and they-Will vprobably have
When :.i was over there they
thpy emphasized:that the demand
private hands, because it has been
is much greater because of : the to.; make; rvsome ;;arjangements, justput
>he^
>fi.
loans or otherwise, to get automo¬
a sick industry for. many, years.
vachuftt ithat;
ting down on the use of electricity.
tive parts, vehicles and so forth
That ^4 the cohdition alt through But despite that remark, ! do
mg the war' yearsi They are look¬
itttd France." OtherwiseI do^ m$t
England. Cutting down on the use not mean to impiy that I am in
ing for, all types of' merchandise see vhow -the
country can come of;: electrical power is reducing
and >1 will say that
they definitely; back^to^hef it b&loh&s; 'C
favor of nationalization becauso l
want American" merchandise. .'
*>':
it ^he liroductrnty of England! :ahd
am not; But the English industries
v■'Jv i
*" ^Mo-hbtithink
;
They: have: e xc el 1 e n t - roads
they are: going to
Belgium Prosperous.
• ^
^throughout Switzerland; :The au¬
•,% approach the 175% level that they and the industrial people are very
tomotive trade?; however, has a v.oNow, moving over from France, are aiming at, and I am a little much concerned over this nation¬
stiff competitors inh the" S w i s s to Belgium. Belgium is-enjoying skeptical of the unfreezing within
alization program and ihat is^ahRailroads; fort I .think Switzerland % igrCatt erayof :prosp6rity;:-The Ihe 12vmpiith: period because, they
has probably t one, > of ythe^finest only xoncerrv L-have is ^that" itis? ^reiigbing. to fall short of their other thing that worries them in
|railw^^ystems.dh |he worldv^ahd on an inflationary basis. Prices .quota* for export necessary to get getting their exports up to honor
HI t';ver&^.'Builder are. yery high. Food and " hotels thesabiotihfr bi
exenahge to do the this agreement with us on the loan
spite that, it is always going to be and so forth are tremendously
unfreezing.
question.
ry fine market. You have a high, particularly food. The cost
Harry D. Caspef
tremendous
Furthermore, when they made
tourist
traffic
and of an ordinary firmer tbday is
,

and

Hess

prewar

445)

page

levels, the

v.-'V'-Mr

'-t

•

|94$, I think*.? broke all records $7.50
and

they

1947
ness

for

looking forward to

are

large volume of busi¬

which

definitely ties in with

the amount of

and parts they

cars

use, because that is
greatest
amount
of

where

the

automotive

supply goes—to the tourist traffic
in Switzerland.'

There are' relatively few people

Switzerlandrthai eah iafio^

automobile and it is through their
tremendous tourist centers and so
forth that you get your automo¬

All

There

France

Going

from

France. Here

Confused
-

•

Switzerlana

have

into

country
endeavoring to right itself
from four or five years of war.
But
unfortunately they do not
you

that is

able

seem

decide

which

way

they want to go. I was unfavor¬
ably impressed with the lack of
confidence by the business people
in the government and the lack
of

confidence

seem

know,

there

exists

that loan

preva¬

lent

that

as a

black market operation
any¬

more.

they do not refer to it

They call it the "Free Mar¬

ket." You

get

119 French

francs

for your, dollar at the official rate
in

the

pay

for the goods they

in France,

you

will

«-v

from

lars for sale.

When I

offering

&■

you

large

very

destruction
hit

them

Docks,
well

docking

hard.

there,

up to

they

320 francs for the

ficial rate of exchange.

Istt

stand

Xfe

■:

■

it, has

the of¬

I under¬

moved up since 14eft

France, That is the, situation that
exists in

that

country today;;:

know,

as you

blasted

forth at

out.

Is In a
v

#!';

terrible

state.

When you

'see the buses and taxi cabs

■

ning

through Paris

run¬

wonder

you

they

visit

distributors

you

the

automotive

find their stocks

STATEMENT OF CONDITION DECEMBER SU 1946

that

there

RESOURCES

say

will

Cash

the

Belgian

leveling

amount

exports

they

•

1,455,000.00

•

57,958,543.50

•

Loans and Discounts

Branch

Mortgages

the

Buildings and Leasehold Improvements

Customers'

Liability

Acceptances and Letter* of Credit

LIABILITIES

Now, moving

Commercial, Bank and Savings

rest

but

you,

this

with the

has

been much of

ket

company.

for

know,

our

the

They
50%.

wh®ey ailil

are

facturing.
They

are

will

•

Expenses and Taxes Payable
.

brings

concerned

which

about

and

that

have

would

France, but

I do not

very,

very

concerned, that

too much from
normal

think

small

and

think, until they get their

house righted insofar
is

times

the franc

you can

expect

France, although in
I

guess

France

was

•

place within

However,
had

which
12

anyhow, at least in the majority

4,746,711.32

Capital Funds:

8,500,000.00

•

.Ky:

•

■

•

Undivided Profits

•

12,500,000.00
27,500,000.00

3,961,194.54

Reserve for Retirement of Preferred Stock

estimated

$1,168,892,277.17

United States Government Securities carried
are

pledged

to secure

164,272,240.08 in the foregoing state¬

public deposits, including deposits of $18,165,266.40 of the

Treasurer-State of

Michigan, and for other purposes required by law.

DIRECTORS

rapidly

should

take

that

basis,

that

considering

they

HENRY E. BODMAN

JAMES S. HOLDEN

W. DEAN ROBINSON

ROBERT J. BOWMAN

JAMES INGLIS

R. PERRY SHORTS

CHARLES T. FISHER

WILLIAM S. KNUDSEN

GEORGE A. STAPLES

CHARLES T. FISHER, JR.

ALVAN MACAULEY

WALTER S. McLUCAS

C. E. WILSON

TRUST
This bank acts

DEPARTMENT

Trustee, Executor and Corporate Agent

their exports,, 1 think in 1938, as
around

100,

52,461,194.54

•8,500,000.00

JOHN B. FORD, JR.

were go¬

months.

they

•

wasn't too great a market for

they

ing to unfreeze Sterling

possible,

4,781,210.87

•

Surplus
-

812,500.00

unfreezing

clause in there that

470,390.09 ;

room

parts

1,758,474.63

are

know,

for

$1,095,361,795.72

SI do not think they

how

orders

32,224,429.75
33,578,310.21

Payable February 1 1947

Common Stock

,,,„J

probably

there

$1,029,559,055.76

Preferred Stock

manu¬

hoping to increase that

and that

•

short

.§!...

this year, but

•

V, Common

hhilding. tAnd in

fell

•

Reserves

Vehicles

half million units in

Deposits

Acceptances and Letters of Credit

;

exporting In

1946, I think they just

Common Stock Dividend No. 25,

industry

their

Income Collected-—Unearned

you

there is all out for exports of their

products.

Accrued

mar¬

automotive

•

Other Public

never

automotive

United States Government

to England.

over

know

received

4,781,210.87

Deposits:

made and the terms of it. As
you

this

1,224,600.24

2,915,421.45

$1,168,892,277.17

Struggle to Export

namely the English loan that

204,308,579.98

•

Accrued Income Receivable

way

lack of dollar exchange. I do not

people

40,957,958.24
1

cannot

their business is down due to the

many

163,350,621.74

•

difficulties

depreciated Franc.

Britains

all

Real Estate

they are, the situation will

subject

They cannot get anything and

632,4#, 213.07

that for France.

say

Loans:

are

level off without any worry about

263,760,708.06

•

doing today and the people work¬
ing

•

Other Securities

off in the prices but I think with
the

Hand and Due from Other Banks

United States Government Securities
Stock of the Federal Reserve Bank

ment

absolutely depleted.

DETROIT

Complete Banking and Trust Service

Franc.

■

you

BANK

DETROIT, MICHIGAN

are

were

going

have their postwar exports around

175% of 1938; They

bctUally indeid

Member Federal Deposit Insurance

Corporation

for¬

& C04

with Mercer Hicks

pretty

were

But

was

O'karie

temporary slips and

devaluation

how far they are going toigoand

^when

was

Antwerp

Antwerp. I would

fear

not

excess' of

Their automotive transportation

associated

quickly rebuilding them. In fact,

and

were

now

Mr. Casper

partment.

& Co.

City.

facilities

The

I do not know how it is

was

are

Corpora¬ merly with John

tion, 25 Broad Street, New York Mr. Mader

again the handicap is in
the transportation field. Of course

have dol¬

you

$*
■

six

Securities

Mader

with the firm in the Trading De¬

factories

...

dollar—nearly three times

American

L ;

day stopping

wanting to know if

••■

five

Manager of the Sales Department

Here

particularly Paris,

have

solicitors

#•■

you

Alfred R. Black has resigned as

buying

are

Max

Resigns

NATIONAL

the, big industries of
glass and steel. They

are

have

financial

banks, but anywhere

A. R. Black

has depreciated

going full-blast again.

are

course,

I think there will be
so

lower

due to the higher prices they must

exchange dealings in France.

However, it has become

1:1

you

based

making asbestos cement products.
They are the world's greatest pro¬
ducers of glass;

shops,. and Bel¬
country in which I

was

prices in the United States

to have money and their fac¬

Belgium

stability of

large black market operation

and

mer¬

the

I saw a lot of

the

the franc.
-

level of

people
who 4iad
paid
around
$4,200 for their Fords. But they

also
-

:"^gV
^ajltypes of

the loan it

approximately; $3,200. That is the
official priced But I interviewed

look

seem

gium is a
should - say T ^aw probably the: from us today. The nationalization
most new American 1946 vehicles. program of England is very unThe Ford delivers in Belgium, for

tories

very optimistic on the out¬
in Switzerland.

place is
to have

every

are

chandise

tive business. So I would say that
am

But

people

money..' "'

$8.

filled.

WILLIAMS:

*48

THE COMMERCIAL & FINANCIAL* CHRONICLE

Thursday;- Jahnafy'23.

1943!

Business and Finance Speaks After the Turn of the Year
)>

•

-•

Continued from* page

•>

production levels

446)-,~~v;

not expected to continue

are

—r

good for the farm-machinery
facilities and market

through¬

year.'•
Vy/'vl
brings up the problems of ultimate
plant and equipment capacity in the industry,
And

this

are

industry. Manufacturing

both in excellent positions to

produce and accept its products. If we are unhampered
in our production schedules, we can go a ,
long way .-A_
to-

out the.

excess

ard
>Wi

reducing the pentup demand/"

! '

dominated by governmental fiscal pblicies; 'in 1947—thd
second year of peace—banking developments • will be
determined to. a greater extent by: thfe trend of business
.
.
...
-in -nit
generally, although governmental fiscal policies will silll
exert considerable influence, i
>

wmMrn'':
WALTER S.

Research and developments of new products, expan¬
sion. of old-line products and: a large growing demand
for products developed just prior to the
war, hold bright
prospects of sizeable volumes over the next few years,

and - which will absorb

capacity
sponge

soft drink industry, has over the last period of
had two major problems to contend with. The
first has been limited production due to the restrictions
of

Also, encouraging is the outlook for a greater degree
of stability in the price of the industry's
major raw ma¬
terial—rubber, than was experienced during the decades
of the 20's and 30's, when costs fluctuated from a low
of 3 cents per pound to a high of $1.25 and were re¬

brighter
believe
sugar

;ing

in the year.

Walter

jyj; ;

through close cooperation between govern¬
ment and the industry should not be marred by any
premature action at this time. J •
"■Wfk7
'
*
*
*,
Sj:
;r ' *
'• i' 7
years

sum up the outlook for 1947, a very satisfactory
is expected in Volume of products produced, and. :
no serious interruptions occur in factory oper¬

f Since

Wc^ld Ibok^ fo^tberHhRed Sta^ to
provide its needs of food and fibre, both directly (cover¬
ing1 items ready for immediate iconsumptiob) I bud iridic
rectly ( covering the supplying ofmechanized equipment so individual sustaining),

opinion

•

machinery will

be strong throughout the year 1947.
of the scarcity of certain

Because
critical

materials,

farm-machinery '
able to satisfy '
only a small portion of -domestic ~
agricultural needs; and, of course,

v/ith

the

which ■<«

shortage of

agriculture

countries,
in

dire

ment.
farm

tinue

after

has

Many foreign countries

C. MacFarlane
'
.

reasonably well ♦satis¬

desirous of.becpming
need highly mechanized
tools to aid them in fulfilling such an
undertaking.
; Whether or not any great strides can be made to* satis¬

gelfrsupporting, but they

fy,-

are

♦

partially, these exigencies, will depend not only
on the availability of
materials, especially steel, malleable
castings, and gray-iron castings, but on supply of skilled
labor. Arecurrence of nation-wide strikes, such as we

bepniexperiencing, will certainly continue *to

tard

manufacturing

and

programs

for

untold
is

build

re¬

•

.•

;

•

th^j problems

should: have-

operations

are

^ages, etc.

.:.,

farmers

for

near-

the

•

a/ record -breaking- year7
record-breaking year

time

shortages, work stop-

top of the list of

replacement of machines
for newly-invented

make

available.

purchases rwhenever

Farm machinery

de^red -items—not Only: in

worn

out in recent years, but

labor-saving devices.

Summing this all up—the next several months look

Similarly,

where

deterrent

production of the

supply electrical material in many other

constructiort.lg .in progresS^-homes, schools,

churches, and farm buildings, Tx> maintain our American
standards construction activities of these essential build*
ings must be stepped uMh 1947.: All such building will

in¬

will

create additional

demand^bpon our assembly tables.
:
th0^e>o|v all industry, today. The
basic; industries has limited!
supply of one of our jnost essential materials, steel.

Our

problems

our

are

of labor strifelih;

recurrence

had, not

recovered.-fully: from the shortages

yet

springing; from the earlier 1946 coal and steel' shut*
downs. The stoppages im,these industries in .late 191$
will-aggravate' our steelip^tagesr
Dui-ing the early pafUqf 1947 we will be concerned
with the natural adjustments that\must how take place
in an economy artifically supported in the first year :of

by price control. The bridge between our ability
to produce and the demand for our products will be¬
come narrower.
That the readjustment to a more ac*
curate balance between supply and demand is now in
/process is shown by the cancellations of duplicated
orders. Square D had not reached at year's end the peak
production anticipated to meet the apparent demand.
peace

;

decline

business

com¬

Although it is
it

consumers

will

the

•

thai,
for

the demand

toiexpand and to

will continue

There has
a

even

Sidney

ihflated^
On

great that iri

seek higher pro*

•-

•

been: much ^loose talk of a recession

depression

next year.

Maestre

was

to make cutbacks.

contrary, the true demand is still

1947

in) the United States within

—

■

•

—

the

Sound American: industrial determination to

succeed wills that this
will somehow stabilize

will increase.

^Itself, in spite of seemingly in-

,
,
,,

■<■•>.

-i,
..

Ati

■■-i A
V »

surmountable
both material and

human^r^tions:

f'
J)* I-:

"'•'''''IV'r''

.U?

3-,.

Dresser industr^-

it can'utilize to retire debt.

revenue

if the tax

as a

result of

declines substan*.

•

finance current operations before the end of the year.

year

to reach

may

be forced 4driiig the

three member companies;making gas,/

for^Mse/*by 4he ;-|

Seating I appliances

and bottled gases^ and ^selling their, /
chiefly to the genera

products

-Iri-view of - these- developments the Treasury and4he

Federal Reserve System

J^ts chlefly to

D:re^e^;Iiidustries;.InCi

companies making, in die main, equipment that-func-»
ti0ns in connection with; theiproduction, transportation,
refining and supply of petroleum and
natural, gas, and selling

If, however, taxes are cut

drastically,

goveritimi^t) niightj therefore, find itself ;borrowing to

necessary

duction efficiency.

lower level of industrial activity,
j(,
•
-f,-,
%
expected surpluses may turn into deficits. The Federal

shown:

now

not

?r b^en
5^
°if ? retirement will slacken Tax ve u s
shduld make some funds available to the jTreasury whicn

ing

become

President;

in r1947—*IF1947

some

needed., articles

not

Since the balance in the "War Loan" Account has

tially

we have recently had to* cbntehd withl

not crippled with

areas

this

too

i We have greatly improved and
enlarged our own
manufacturing facilities, which will -enable us to help
relieve tlrs food shorfage thrQUghoiit.the
world.)We cannqt hope to accomplish all 'we should if we continue to

haye

has

will

end-use productstfdr/which the American public
patiently- waited4^^;^^;//;/,4*^/..'v' "

However, the volume of loans for:
the purchase of durable consumers'
goods will run directly counter to
that trend. Unless the durable goods
industries are beset - by long and
costly strikes, they can be expected
to produce a record volume of goods
in the next
12 months.
Many of
these goods will be purchased on the
instalment plan; hence, the volume

further

disturbances to production schedules have
far-reaching
effects.

some

tions.

especially in those areas .where
scarcity of basic food products. Such

make

many

and

Uheryear ahead is to supply,

of the demands which are made
upon our industry*
that the lack of [ electrical apparatus such -as

the "War Loan" Account to repay maturing Certificates
of .Indebtedness as well as otheri government obliga-

thousands,

such

-v ".•

order

Deposits have contracted during the last year as a resuit of the government's policy of utilizing balances in

•

there

,vvp ;jxav^

our ^biiity to develop and produce-

will continue? to ; convert the machines of
to install new machine;tools and to build new fac¬

smaller volume of-commercial loans.

of bank loans to

even

have

j.uxtj

limit of

Industry

mercial loans will decline somewhat.

our

been

Square D Compan^ has^ expanded; its production

war,

decline in the level of busiactivity is likely to mean a

probable that the, volume of

mechanized equip¬
fact, export demand for
machinery will no doubt con¬
years

demand

postwar

tobf^ ln this

tories in 1947. Our aim for

generally forecast for 1947, it is very

foreign'
markets' still are

several

iiAvuvAo.;

*5?

The

Since

•r

for

fied.

neSs
•

animals

used

nation's

the demand

»»ui

war-torn

export

need

domestic

own

draft

,,,

Mack, Jr.

President, Mississippi Valley Trust Company

hand,

were

formerly)) Iwere

this

—

insallation of machine

The field of banking will, of course, be influenced
by
the trend of industrial activity in the coming

manufacturers

are

use,

amount,

year. Thus,
high level of, industrial activity is maintained, the
'. volume of commercial loans is likely
to expand still further. On the other

that

greater vigor to

even

our

One of the electrical apparatus in-.,*

•

that t.hp

?>.v4

dustry's large markets ishveonnee*/'
tibir with tfaetoi^;/con^

rationing continues, it is

generalIv

nation,

dream.

SIDNEY MAESTRE

nations may eventually, become selfthe demand for farm

and

it will
again

ules to these changed conditions so that:
they look for¬
ward with confidence to the future both from the
point
of view of sales and profitable operations.

Power Implement Company

does,

for

many
problems in
order to reach the goals that were—

Pepsi-Gola has long since adjusted their price sched¬

President and General Manager, Minneapolis-Moline
i;P

manufacturers

as a

overcome

be further decreased.

W. C. MacFAELANE

J1,

most

complacency anywhere in the

demand

our

continue with

who
time

public demand for their product at a higher price
their profit figures have already started to show
situation; as the cost of sugar, supplies and labor
crease in 1947, the profit margins of such
companies

ations.

(

many

There still are a number of companies who have not
had the courage to adjust their price structure to date,
For one reason or another, they have been afraid of the

|To

the

have progressed
postwar transition to higher
industrial output. In 1947 we must

to meet these shifting conditions. If sugar
tioning should be discontinued, it is quite probable that
the price of sugar will rise, perhaps to 15 cents a pound,
and unless such companies have the ability and the con¬
fidence of the value of their product to be able to raise
the retail price of their product, they will suffer con¬
siderably.

lent results obtained for the country during the critical

sold

that,

....

short

are

within

world,

company

buying policies until the

of transition from War to peace are completed
in the basic material of this critical industry. The excel¬

processes

year

However, the question of increasing costs will be important during 1947. Profits will vary considerably with
the ingenuity and ability of the management of

4 Meanwhile, while natural rubber remains in short
supply, it is.important that the Government temporarily

war

„

apparatus industry is itself a control
in general. While there is no

electrical apparatus in 1946 indicates

1947 so that the outlook is
both natural and synthetic later

continue present controls and

-V i

industrial

will be removed from ration-

If sugar

during
on

there

and
that

conceded

Supply of natural subber probably will catch lip with
sometime

both

costs,

electrical

guage to industry
for optimism or

reason

second

produce and market their soft drinks
in unlimited quantities for the first
time since 1941.
'• .'

creasing quantities and world output is expected ultima¬
tely; to reach about 1,200^000 long tons.: There Is at least ;
an equal capacity for the
production of synthetic rub-.
hers; ' /

lower prices

increasing

completely.

allow

can serve to stabilize market
"prices in the future./
,■While''natural:rubber;is stiil^"short.supply,:
coming but of the growing areai bf thC Far East id in-;
*1

demand

The

i sugar.

and

for

The prospect for sugar in 1947 for
industrial
users
looks
much

;

and

all

Today the war-born synthetic rubber industry in
America stands a$ a real competitor to natural rubber -

been

;

sugar and materials.

flected in the costs of finished goods to the American

■;

rationing

'has

:/i,.

The

part; of whate ver excess tire
may exist.
Some of these new products are
rubber, rubber films and plastics,

F. W. MAGIN
President, Square D Company

;

years,

consumer.

MACK, JR.

President, Pepsi-Cola Company

coin-

^hile

decision-on the advisability of i#un-

are

of our ^proddcts

many

m -;

..M

fields/the-outlook;,:

soid in other

debt." Any change* jri the rate of,"interest ori. j^oit^eufni I and utilization, of ^•
petrol^umi.'hdtu^,^51
l:
.88?, and allied products, the. world ,
,H- N" MaU,,n ;
.governriient obligations will, of course, affect the-rates
over

icharged 'to commercial- borrowers;
now

that any substantial

However, it-; appears<• S?*
it appears-.r.

change -in the rate qf interest is

unlikely.

Throughout the

war

years,

-r.-l-:*

*''

Tr'"*

-ir-

J.'*.v//+i An'

J.,

made and go on the road*' is only ,ohe of many! factors
pointing: in this direction^A similarly-expanding utiliza*,

(Continued on page 450)

the field of banking was

■

-•: ••

•rfc.V 'tM

mi ni:

,«,

1 cbCn'rifc.:

^-gg^ ^goii^e cbnsumptibn'/ksrTnOre^autdmbbn^

'Xv.v

V,.,

;

-i>)• -i-

*4/

f-\

•V-

m><m:

m'; -v*-™*}-

Wm-«.;'V '

THE COMMERCIAL & FINANCIAL CHRONICLE

Contrasts of U. S. and European

activities
were
influenced
by
limited markets within the coun¬

Economy

the outstanding
politics against pany, perhaps
religious prejudices. Even within which they had no defense could development of low cost" mass
individual countries these preju¬ destroy such markets overnight. production of consumer goods in
dices lead toward tragic condi¬ Industrial expansion in Switzer¬ the smaller countries in Europe.
land was greatly influenced ad¬ White such a. development could
tions for, so-called minorities.
While we in this country have versely because coal, which is be expected anywhere in the
United States, this was somewhat
only one "pasture" nourishing the geographically nearby with low
transportation cost, was a product of a sensation in Europe, playing
search of chemical knowledge and
which had to be imported.
As no small part in disturbing inter¬
its utilization, and that a
large
and
fertile one, the people of Europe is organized, the impor¬ national relations. Good low cost
tance of importation of raw mate¬ shoes
made
in
Czechoslovakia
Europe have many small ones,
exported into the
other
each ,y/ith a high barbed wire rials and the interference of poli¬ were
tics ; in
normal * economies
is countries of Europe thus provid¬
fence, and each differing sharply
by
the
ridiculous ing Czechoslovakia with foreign
from its neighbors due to local emphasized
situation which arose from frantic exchange, but at the same time
conditions. The character of the
planning for self-sufficiency. In seriously disturbing the low-vol¬
pasture has a great influence on
the activities within the borders. Italy the government sponsored ume high-cost producers of the
Under such conditions it is obvious a synthetic rubber project to pro¬ countries providing this exchange.
Both effects were very disturbing
that chemistry afid its utilization vide ample supplies in case of
the
wobbly
equilibrium of
is very markedly different in the war. The director of this project to
was an able technician, compara¬
Europe.
Various sections of Europe.
The industry and aggressiveness
I wish to emphasize that the ble to a contemporary in a high

(Continued from

tions

page 396)

power

differences in
tries

the

Europe

various

are

due

coun¬

almost

entirely to the conditions created
by the present organization - of
human affairs in Europe. In this

review,

I
aspersions

not

wish

cast

in¬
dividual. Any. activities which do
not meet with our approval must
on

any

group

foe viewed with tolerance, taking
into consideration that they are

the

result

organization of
differing greatly
In this review,
conditions only can be

human
from

affairs

our

general
outlined

tions

own.

and

all

cases

excep¬

be found which if given
much emphasis would tend

too

can

toward

position in an American business
enterprise. He frankly discussed
his problems in connection with
this project and there were many

of "

which

great population with potentially

the

American

chemist

Czechoslovakians

the

were

commendable,
but
in
Europe
created
an
explosive condition.
While Europe as a whole has a

move
ease.

possible. The necessity of impor¬
tation of coal as a primary raw
material was a major concern. He
had orders to go ahead and build
a plant. When asked what would
happen if in case of war coal

broad markets for low cost

mass

products, these were
greatly limited by the inequality

produced

In most of the smaller countries

of Europe

realized

in any direction with perfect
The trouble arises from the

interest.
coal

change

and

are

their

combination of

deposits,
technical

large

industrial

ethical

mutual

con¬

uniform ethical rules of busi¬

ness

trade

conduct
on

international

the Continent of Europe.

experience

nationalism

nomic

the

spirit

stimulated

ofiridust&to
It^WMiai^toportant^factor^in jeh«

jpersion

investment in the manufacture of

products in large volume because
their

success

could

only be

Cash

were

their

inevitable.

.Of interest in the industrial ex¬

as¬

non-existent

was

individual

countries. (Again
emphasize that there were;

ment cases and the

possibility o£

greatly throughout Europe. It is
matter of considerable expense

effort

and

the

for

inventor

to;;

obtain patent protection through¬
litigation to

out Eurone. and

en¬

force his

rights may involve suits
many countries with as many
uncertainties as to court rulings in
each. While we; have. our own

troubles

here, they are noth¬
to Europe. The
individual inventor in Europe is

ing

thus

over

compared

greatly handicapped. On the
hand, large organizations

other

activity, was suf¬
ficiently strong to stifle, with the
assistance of political or economi-r
cal
pressure,
other
efforts in
Europe to start competition. They
could
do
this
even
though
a
proposed new venture would pro¬

(usually monopolies) can, through
the patenting of a large number
of minor inventions in their field
such
competition is

in different countries, create

confusion that

new

almost

completely discouraged.
played no small
part in enabling Germany- to
uct. With sales of average .quality
maintain her dominating position
goods at profitable prices assured,
in European industry*; m the incentive for intense
vide

lower cost

This: situation

better prod¬

competi¬

tive

engineering European and American Research
development to insure lower costs
An important difference in in¬
or improve quality, which exists
dustrial activities in Europe and
throughout
American
industry, the United States was in the utili¬
was not present in Europe; I do
zation and distribution of research
research:

and

wish

not

and

to imply that research
development jvere complete¬

and; development effort. In the
review olponditions in the United

elbpinate^^^fiS^is

that, is not the case,
progress was

Stajes,^itVwas stressed .tpat,:re¬
search and development in

but industrial

definitely not stimu¬

(Continued

: v

on page

altim-

451)

Till ST COMPANY

and

'.-'z

and- in
•

•

31, 1946

Public Funds

ment

499,647.17 k

Loans and Discounts

Real Estate Loans

Loan Ac-

—

527,782.46.

Housing

Ad¬

ministration Tax, Etc.,

Deposits

2,388,148.08

Industrial and Commercial

All Other

Real Estate Loans

Govern¬

........

Federal

' 387,132.43

...••••

.•••'■♦$ 5,059,514.58'

War

count

6,374,147.91

• ■ • •

♦;

$91,580,447.13

Special Loans—R. F. C.
Participation

LIABILITIES

States

66,268,000.00
*

;

United

Municipal and Other Bonds

Ml''

DEPOSITS:

$24,812,799.96.

ties at Par

2,167,223.88

254,258.79

..........

Deposits••

• ••

95,131,078.06

Federal Housing Adminis¬
tration
'

-'"

$101,972,633.89

Mortgage Loans •

(Insured by P. H.

1,087,644.99

A.—

I: A- United States■ 'Gov*
ernment Corporation)

Reserve for Taxes, Interest

■

and Insurance

'cr''.

•>

•••'

;

:•/■>? >•

■'

-"-*'1

12,404,297.29
Bank Building *
Bank Real Estate Lease •

596,237.17
1.00

•

Capital

202,196.66

1,000,000.00

Surplus

;

...........

1,000,000.00

Stock in Federal Reserve
>

•

•,,,

States

Government Se-

curities-

•

552,737.60
144,438.32

Undivided Profits

224,969.05

•

Customers' Liability Under Letters of Credit- •
Other ResourcesTOTAL*

• -

Contingent Reserve-

60,000.00

Bank—.............
Accrued Interest on United

;

•

............

33,250.00
6,054.83

2,697,175.92
Liability Under Letters of
Credit

>.•**

•

♦-

• -

XJnder State Government and Chicago Clearing House

Member Federal Deposit Insurance Corporation

33,250.00

$104,905,256.47

TOTAL

$104,905,256.47

enforcement of patent rights vary,

of these groups, dominating
field

but

non-ex¬

trade

any
attempt
at'
uniformity. What may be patent¬
able in one country may not be in
another. Procedure in infringe^

The

groups.

only

tices; without

sales representa¬

U. S. Government Securi¬

industrial domination of the

sufficiency for national defense
played an important part in the
expansion of industry there. That
the same objective should become
absurd was suggested when dur¬
ing one visit I found two separate
projects to erect plants for thd
production of Hydrogen Peroxide.
Each of these to operate economi¬

hand'

Other Banks

industrial

War I. While
was

allied

not

international

patent1 system and one uniform
: practice ; throughout
the
United States are not enjoyed in
Europe. There each; country ; has
its own patent, system, and prac-"

and

the

normal

patent

particular field. As their primary

The

one

felt to be

the business in their

tive

cartels.

interest

power

the consoli¬

The benefits of the existence of ;

manufactured goods were
to
establish
rules
for

firmly

many exceptions to this general¬
ization.) ■
'

of
internationally
competing producers of raw mate¬

RESOURCES

nation

sured by continued profitable ex¬ pansion in Czechoslovakia is the
port. The unpredictable- machina¬ aucceii

the

I must

organizations

cartels to act

Europe,

the only practical solution. These

December

accentuated
new

abling Germany to maintain its
position on the Continent^In^ spite of * individual •ef¬
forts in fothen countries,' industrial cally had a capacity to produce
developments which would have more-than4he mostoptimistic
been considered normal in this estimate of home consumption.
country werd impossible. In dis¬ When asked what,; they intended
cussing plans for expansion of td-^do'witli the excess capacity^
manufacturing activities with in¬ the answer was export. This ne¬
dustrial leaders in such countries cessity for export meant getting
as
Denmark; Holland, ? Belgium, the business from i established
Austria, Y HungaryX and Switzer¬ European producers who also had
land, consideration of reasonable to maintain production. With no
security of investment greatly rules of business conduct and en¬
limited the fields open to them. couragement of rival governments
Their populations were so small interested in foreign exchange,
that they could not justify capital unsound1^, competitive: practices
dominant

istent

and on meeting competition
neighboring countries with
or referees, chaotic com¬
petitive
tactics
resulted
which
could lead only to uneconomical
operations. To avoid this, the in¬

conducting

necessary

therefore

was

rules

competition in price and quality
which we have in this couhtry

own,

formed

monopolies to protect their

interests

from

rials

being dominated,

made

form

in each country which could
support such activities. Natural¬
ly, . each
of these ; enterprises
considered the export field as its

was

in; ithis ;:

V;=^

and

pany

stitution of cartels

dation of competing firms of! iite
dustrial
countries
in
orders to

the larger countries, 'their efforts
were usually confined to one com¬

;

■

established in Europe, stimulated

countries of Central Europe, con¬
sideration
of
industrial
self-

This v condition' - placed': such
qbstaclea;inT»the path of-the dis-*

fear

alternative

consumer products so common in
the United States. Where attempts
at mass production were made in

•

extreme

which should have corrected this

^.tVhy Germany Was Dominant

STATEMENT of CONDITION

tempo of
expansion after World
one of the objectives
to challenge the virtual Ger¬
an

man

worse>

large enough

production

mass

The urge to dominate and the

devel¬

Keorganization after World War I,

situation,; in fact made it

markets

necessary
.

HALSTED AT SIXTY-THIRD

business
within
the oped when this area was the in¬
machinations of international po¬ dustrial section of the Austrialitical intrigue from which the last Hungarian Empire, and an eco¬
sideration have been removed by
economic nationalism. There are

home

country.

to support the highly competitive

plants

bringing

traces

the

CHICAGO CITY BANK

Czechoslovakia is of

activities in

fact that problems

in foreign ex¬
national
problems

lated

try and the insecurity of export
markets. In no one country were

was their own prosperity
convenience, it is but natural
that
the
rules
and
regulations
(differing in every case) evolved
of the distribution of the pur¬
with only minor consideration of
chasing power among the peoples
the general European economy or
in the various
countries. As a
of the interests of the peoples in
result
Of
generations of wars,
the
could not be imported, he made
various
countries
affected.
domination, international intrigue,
a
typical
gesture
of
resigned political and economic exploita¬ Self interest on the part of these
despair and stated "No coal, no tion, the peoples of the predomi¬ organizations naturally turned to
the
rubber."
advantage
of
establishing
nantly agricultural countries have
sales prices and the allocating of
not enjoyed the benefits of educa¬
Position of Smaller Countries
markets
often
leading
these
tion and opportunity as developed

businessman could not conceive

in
the
other
parts of Europe.
where the governments
Compared
to ^ the
life of the
impotence in the
agricultural producer in the United
European Raw Materials Situation game of power politics, industry States, the standard of living of
was
practically non-existent or a
.j: lit no one coiintry, of dBuropie .is
very large proportion
of the
and
development
there the variety and unlimited manufacture
population of - Europe was ex¬
was
confined to
small volume
quantity of raw materials availa¬
tremely low. Except for the ex¬
ble as in the United States econo¬ specialty products. Even for these portation of excess food produced
the importation of essential basic
my. In most of them, local markets
by
primitive
high cost
labor
materials
was
necessary. methods
are
not large enough to justify raw
competing with low cost
Through great efforts in technical
3ow cost volume production of
producers overseas, their people
research and ability in manufac¬
consumer goods. Every
contribute only additional prob¬
country in
ture, they were able to keep just lems to the European economy as
Europe must import some or all of
the raw materials or manufac¬ ahead of competition. They could a whole.
Their restricted com¬
tured products it consumes either not take part in providing Europe bined purchasing power does not
with
low
cost
mass
produced
from
neighboring countries or
provide markets for competitive
from overseas, depending on the products even if other conditions mass
f production of consumer
extent and nature of its require¬ were favorable. A large part of goods so important in an economy.
.-a,,;' ti
ments. Foreign exchange to pay Europe was, because of the organ¬
Limited Markets
for these imports must be pro¬ ization of human affairs there,
from
what
might
vided mostly by exports. The fact discouraged
lints those countries of Europe
have been normal industrial ex¬
that every country in Europe is
wherel industry
originated be¬
obliged to export and * import pansion and the dispersion of in¬ cause of availability of coal and
dustry, so that no one- section
(and most of this among them¬
other raw materials, the industrial
could dominate.
selves) in order to continue to
As
an
exception
to general
exist, should not necessarily be
of any more concern than the fact conditions prevailing in the small¬
that goods in the United States er
countries, industrialization

distortion of the overall

picture.

449

Supervision

Member Fcderift Deserve System

THECOMMERCIAli&FINANGIALCHRONICLE
mmmm—

«———mmfm i

Business and Finance
(Continued from

page

448) '>

.L'

>■

M. LEE MARSHALL

THOMAS W. MARTIN

Chairman of the Board, Continental Baking Co., Inc.

products of petroleum refining,, applying
industrial fields, is likewise indicated..

'■■

Speaks After the Turn of the Year

tion of other
to

Thursday, January 23, 1947
l

mfrmmmmrnmtfpmmmmmmm

President, Alabama Power Company

Everyone

Significant developments are. in the offing with re¬
spect to natural gas. For instance, plants are now being
built to convert natural gas. of which there is a large

naturally

Albama Power Company has made a careful study of

confronted with many important "ifs." It is my opinion
that if management, labor and government can concen¬

the probable uses of power over the next few years for

some areas ^of the country, into gasoline.
Dresser is today selling equipment for this development.

all-important job of production for

surplus in

looking

for

prosperity,

for heating, already stimulated

concerns

1947 and

year

in the future.

before.

to the
might be growing near to the
practical limits of its crude oil production and. that

above

Our

level

far

above

any

While

fair measure of

for the

ucts

can

without question, that the demand

say,

peacetime products of

all previous levels,

Will

1947

another year

$ amount of
to

answer

our

own

bread and butter?

questions such

outcome

ours

and I would consider

fundamentally

This

has

expanse

citizens. Full employment and high

ever

special groups and which tend to delay the
proper balance among the

production, prices and wages.
Lower prices' may be

factors of

accompanied, ,by some' reduc¬

tion in the total dollar volume of

activity but they will

the basic flow of demand ^ and supply at a
healthy level. There is a natural ebb and flow to every
preserve

hurhan activity. Only the dead are
changeless. There is
nothing sacred about present figures. If we have any

respect for it, we must be prepared now to allow our

system to adjust itself to' the

tiew

levels of demand.

•

With

of the United States

v****'

»g:ran7; S^
Mauler,

-iriPr

fivincr

and new standards offreight

are-approaching a second period" of:

M thefneeded

assure
continuation of the railroads' motive

arid rolling equipment proIt is estimated that the rail-'
modernization will cdst$l,60$,000,000 — the greatest face-liftr-ing treatment ever undertaken by
the Industry. -;
/
£ More than anything else, AmerlCan Locomotive's plans for the fu¬
ture bespeak our faith in the rall-

ri;

power

•r gratib

'roads!

^roads! future. We have said before*
•c and repeat that the railroads in the
) next; 10 years will cariy more freight
and
Robert

B.
y

■

McColl
'

thp

passengers

any

than faith. It is interesting to note that 16,000,000 more

live in this country than in 1930. These potential
irtonn nnn noil
shippers and- travelers have some $«,000,000,000 more
in savings, deposits alone than in 1930. They own more
thm^SOiOQ^OOOjOOOdti^war hnd savingsbonds#
persons

™

Alread^;i':matioxPb^hOihads'%' 1930,
to travel

much

and the war.

we were

unable

wanted during the depression
Today the nation is on the move under a
as

PRM-5A

world's

larcost.

nm^

sv *

field of railroad management

conditfons-of peace

without losing^wareness of our social
Tespcmsibiliiies^?*

local, national and international#

than in

pe&ce^timedecade in history.
}r: This prediction is based on more

carrier-based dive bomber; the PBM-5

hnat*

gave :• ■

ehcduragement to

.?* restlessness probably never exceeded in

long

AM*-1

MIThe 'receufrrhte: rise; o§

—

Several types of nulitaiy aircraft are under construc¬
tion for both the Army and Navy, including the XB-48,

service[ becoming a reality, the railroads

' /

Together * with a sister ship, the 3-l)-3/-w(ncH" has
pressurized cabin, the Martin Co. has sold morearpteite, '
mw
of postwar design than any other manufacturer;Mpst
of the leading airlines of the United States have bought
one or both of the typeSi Whiie geVerai Bouth jAmerican
Operators have placed orders.
i

equipment

new

and passenger

geherali economic.

iiaerciaL.airlinera*to,:.|^

ROBERT B. McCOLL

•

President,- American Locomotive Company

Qhief interest is centered in 'the Martin- 2-0-2* a twihengine, high-speed transport, first of the postwar com-1

which af¬
•

commercial and < military
aircraft, covering 11 different types; of planes,i Mr. Martin said. This is not only one of the largest backlogs in
the industry 'but b
the tno^ diversified. !

-disappeared. A reductionin the general price levelwill
calm labor unrest and' is a more equitable way of in¬
fect only

„

Glenn L. Martin

The GtennTv Mattin Co*
backlog of $201,000,000 for

doubt that ^the forces of competition wilkcreate^products

creasing real income than b& ritee&ia:

known."

When prices are too

during 1947," Mr. Martin said. "But aviation
all sorts of economic ;>
conditions, and there is no reason to feel that it will not :
continue to do So In 1947; In fact£unless
ditions get much worse than ahyohe;hasf ^sualized^the^i
year will be the -greatest -i)eacetime^earyRvteHott^^

within its buying power, once the basic scarcities have

achievement of

not only prove profitable to investors,
assistance to the airlines through reduced

supply and demand.

has enjoyed a steady growth under

wges^have created (a greate^
;

problems.

naturally will be affected; by.

conditions

B. Malsin

be¬
reach"

persons

expects

high, they stifle demand and reWhen that happens, it brings unem%■ ployment and reduces: individual income. That weakens
v*all the props, under! the platform of a
secure
and
:
'prosperous standard of living.
Three factors will bring, about increased-production:'.
Stabilization of wages, a free flow of materials ana a.
lowering of prices, enabling industry to maintain high,

forecasting continuation of the aircraft industry's
steep growth curve during the new year, Mr. Martin,
said that aviation already is feeling the effects of recent
industrial tie-ups which have caused delays and inter¬
ruptions in the flow of needed parts and materials;*
*
"We

and

war

strict production.

hope of maintaining high business activity

our

some

operating costs.

Nash-Kelvinator

13,500

because prices are determined by cost of production

solutions

in the number of airplanes

operation will

is to be able to produce and distribute* withinr the buy¬

ing capacity of

the

about

High prices do not always bring prosperity and profit

advocated that private capital enter the field of airport
construction and maintenance, believing that such an

are

Our only

has

and

for

the

material and. equipment

£ well

have to be done

being added to the airlines of the
country, Mr. Martin believes. He has

been*

equip¬

27,000 when the expansion program
is in full swing.
The future now depends on the
George W. Mason
ability of the country to avoid a
recurrence of the crippling difficulties of the past
year,
which forced up unit costs of
production, raised prices'
and prolonged shortages.
Most of the problems facing industry today, are temporary obstacles which will not cause long detours if
labor, management and the Government will just look
ahead, think ahead and plan ahead.
?.
The key to the price obstacle is volume production.

difficulty is the lack of
modern airports to handle the rapid

fundamental

There

fore

The chief

but be of great

to this point by
scarcity of goods.
enough eager buyers to
support a high price structure dur¬
ing the first stages of filling empty
pipe* lines, but there is a point be¬
Raphael
yond which high prices reduce ac¬
tivity more than they add to dollar* Volume.

partly concealed

what is going to
the near future

to the existent

reduction iii

restriction

employed

recommendations

prices .a constructive event. High
prices have already begun to restrict

the

available.

sees

encouraging.
National income is high. There is a great unsatisfied de¬
mand for both consumer and capital goods which should
form a very sound basis for prospery;
^
„
ity for a number of years. The ac-..
cumulation of savings cushions and supports
this
unsatisfied
demand
even though we have to realize that1
this accumulation will be dispensed
slowly and gradually.
The present price level is too high

demand.

become

$7 mil¬

Present plans call' for the
investment of additional millions as

may

Martin, pioneer aircraft
manufacturer, told the "Chronicle"
he forecasts continued expansion in
industry,
despite
any
temporary
handicaps.
Pointing out that even during the
depression days of the '30's the in¬
dustry maintained a steady if slow
expansion, the only pioneer aviator
still heading his own company fore¬

RAPHAEL B. MALSIN

are

Detroit, Grand Rapids
During 1946 the

quickly

Glenn

It is upon the

Milwaukee.

company invested more than
lion in new machinery and

the first of the postwar Martin 2-0-2 airliners
now
undergoing flight and static tests and deliveries
scheduled to begin to customer airlines in a few weeks,

President, Lane Bryant, Inc.

;

and

President, The Glenn L. Martin Company

this, rather than figures

operations of companies such

conditions

facilities

With

in 1947.

Business

ment.

of strikes and

purporting to represent unfilled orders, that will depend
the

plans of Nash-Kelvinator Corporation call
for output of the largest volume of automobile and elec¬
trical appliances in its history.
In line with this expansion program during the past year, NashKelvinator acquired new plants in
California, Wisconsin, Canada and
England. It also expanded its present

GLENN L. MARTIN

interference with pro¬

Nash-kelvinator Corporation

1947

affected.

has passed

in the long run, in cutting down the

results,

The

be a temporary decline in general
business, we believe that the upturn will come soon
enough so that our business will not be seriously

Or has our country at last settled

down to the realization that every

duction

there

use

GEORGE W. MASON
President,

purchases and production de¬

prove

material shortages?

W. Martin

relations.

produced.

general economic and political trends.

upon

in its labor

superior quality of most bakers' bread and the

While

the extent to which this demand may

be translated into actual

pends

our company

Thomas

by most lead¬
ing bakers without government regulation should help
our
industry maintain the present unprecedented de¬
mand for commercially baked bread.
The continued shortage of sugar will again make it
impossible for us to supply the demand for our. 'cakes;
but will not be permitted to affect the
quality of prod¬

skepticism.
:

we are making our plans
ready for every power demand.
of electricity by all classes
of customers during 1946 was the
greatest in the Company's history*

The

fact that enrichment has been maintained

However backlog figures must, under

today's circumstances, be viewed with

ahead and

industry has been fortunate

the whole

kilowatts.

to be

existing shortage of fats and oils, will probably result in
continued high cost of baking ingredients.
The

reached

have

tn view of these circumstances,, it is only natural that
at this writing,
Dresser's backlog of unfilled orders
should

power

anticipate a great industrial
development in Alabama in the years

World demand for American flour, together with the

Dresser's en¬

peacetime toted;

for

trouble this year.

•

Wages paid have generally kept pace with the cost of
and therefore we anticipate no seriduis labor

gineering .staff has been expanded to meet these re,

living,

This is true with respect to production, transportation,

quirements.;

to the cost of other foods.
M. Lee Marshall

potentialities, engineering

marketing, areas,

expect no sharp reduction
price of bread because bread
prices have not risen in proportion

skill and techniques are playing a constantly more impor¬
tant part in the entire field of petroleum and natural gas.
and. utilization in final

demands

increased

whenever

820.00

the

years

in the

portant part.,,
to

better

While food prices generally should
will undoubtedly decline fur¬

ther,

wells are rapidly dissipating any worry along this line.
In both of these trends Dresser equipment plays an im¬
addition

even

and

drilling and extraction of maximum production from old

commercial, urban and
Based on this study;
with its long estab¬
lished policy of being ready to meet
rural purposes.
and in keeping

they arise, the Company
recently announced the construction
of a new
120,000 kilowatt steamelectric generating plant at Gadsden*
Alabama.
This
will
bring the
capacity of the Company's plants to

;

might be taken toward protecting po¬
The fact is that new techniques of deep

reserves.

industrial,

pany.

measures

the

spite of some rather bearish
prognostications for general business
in 1947, we look forward to a reason¬
ably satisfactory year for our com¬

effect that this country
some

1 In

There has been some discussion in past years

tential

we and other business
look ahead to a good

and convenience, has been given an additional impetus
as the
result of the coal strikes. Projects call for the
extension of gas into many fields never thereby serviced

year

can

by consumer preference on grounds of cost, cleanliness

)

the

their combined efforts

trate

The use of natural gas

ahead

which, will be delivered to the Navy soon,

(Continued

on page

452)

'vc'vv£LV^'we also have

,iv

Numbef ^4362;

Vbluttie163

.,>■•<>

...

■".'•■■••

Washington and You

..v», >■'* i'.,

•

European Economy

bers

was- aggressively, eafrted
both
by the producers ', of

»dUstry
out

•

primary

products

and by the
users, f la
Europe, on the - other
hand; except for some minor ex-r
ceptions, the consumers relied almost entirely on the research and

•

}
;

development laboratories; ofthq
producers of primary products for
•

;

for
U

and

softening of regulations
had been thwarted by

gress.

" v''-

•

•••

yj.:*

•

: >,v-!r

;

■

in laboratories having

the view¬

the

defeat

Germany, the cut¬

ting off of chemicals made by
Germany caused ;acute problems
I for the entire European industrial
economy.

general conditions outlined
existing in Europe can be bet¬
ter understood if you will, con¬
sider the situation. which would
arise if say New York State were
to decide to go on its own. It
.

Committee',

House

the

sidle in that direction.

may

s
■

forth. To develop; a balthe government
undoubtedly sponsor the
i establishment of automobile, re-

1 and so
I

anced

j
s

complaints that fi¬
contribute
to
monopolistic control by their in¬
knot-hole

this

the

peering,

De¬

partment feels just about enough
knowledge' has- been gleaned to

legal

justify

newcomers

impractical. If

you

own

filed against
investment

biggfest
*

Federal power proj¬

ects will be authorized by Con¬

are

seen

This means two things.
(1) The White House plan for
decentralizing industry will be
crippled, because Federal power
development is obviously an in¬
tegral part of decentralization.
(2) Scores of projected water¬
way
ventures involving flood
control, navigation and power

possibili¬

.«

Results

spend

pleases, over and above appro¬
priations covering routine presi¬
dential
expenses.
During the
war,

Roosevelt pyramided this

disbursing

executive

unbridled

want; an itemized justification
for the Truman jackpot.
*

The shrinkage

forced upon in¬
terest rates by .New Deal deficit
financing is silhouetted in latest
Federal debt analysis. The aver¬
age rate of interest on debt out¬
standing Dec. 31, 1946 was 2.06%.
The average rate on the corre¬
sponding date following end of
World War I
❖

was

4.19%,

alone, and that intrigues

and rivalries would soon develop
a

situation making war inevitable.

constructive,

Propa¬

WASHINGTON, Jan, 22 (Spe¬
cial to the

"Chronicle")—In the
reshuffling of Congressional per¬
sonalities due to the reorganiza¬
tion

debt

out

Over

securities

held

Federal

securities outstanding as against
on

of]

Michigan from
Banking and
Currency to
the
P u b 1 i el
Lands Com-!

30, last, the banks held 40% of

43%

Crawford

investors. On June

bearing

Fred

live

five-sixths occurred in holdings

interest

of]

Representa-j

debt increase during fiscal 1946,

total

fi¬

is the shift

banks. Of the 11.8 billion dollar

of nonbank

terest

nancial circles

the

one

will be of in¬

80% of the decline In the
in

change which

Federal

debt from March to June, 1946,
was

Con-'

gress,

the corresponding 1943

i 11

Mr,

e e.

date.

Crawford, &!
F, L. Crawford
$
*
Republican, in
New business ventures which
seniority on
will be particularly vulnerable if the
majority side of the Banking
1947 brings a drop in business
and curiermy Goihmittee^ would
activity comprise 300,000 retail,
have been outranked only by the
120,000 service, 90,000 construc¬
tion, 50,000 manufacturing, and Chairman, Mr, Wolcott.
Mr. Crawford has always been
100,000 miscellaneous establish¬
,

ments

the

placed

operation since a penetrating interrogator of wit¬

beginning of 1944. Recession

casualties

would

the

before

nesses

antitrust

Congress will retain the Re¬
Finance Corpora¬

Mr.

The

Crawford

Commerce

and

Last

year

visited

approxi¬

form

least

has

firms

reached

member of

group Of

as a

legislators

concerned with insular affairs.

top

new

;

TRUST

AND

TITLE

CHICAGO

three dozen countries

Department estimates mately

that the number of U. S. business

COMPAXY
69 West Washington

Street

•

-■

Chicago

•

-r'

"■

.C'tnirlC

CONDENSED
As

through Congress. Senate

its way

Banking

particularly Currency Coinmittee.

from

book

Committee

the

maneuvering

concentrated in these groups.

construction

in modified

to make

are

running

prosecutions for
fixing rates with Interstate Com¬
merce Commission approval is on

enjoy the benefits of the Indus¬

Commerce

tion

you

Congressman Crawford
Shifted From Banking

Reserve and commercial banks.

scis¬

Treasury official claims real
Federal

House
blank
Truman wants the

Mr.

the

state could

trial Age

will

progress

be applied to Presi¬

million

success
store."

ganda dispensation will be com¬
pressed; (2) Hundreds of press
agents will be fired and the Fed¬
eral payfoll correspondingly ab¬

re¬

White

$500,000

after

important to
smart businessman than a

may

bookworm if

solved.

Limited immunity for railroads

no one

Don't expect any early transfer
of SEC headquarters from Phila¬

pruning

"It

ness:

investigation

least two in humberi\ (I)

Congressional

released

Study of the book selling busi¬

not

menf*

visualize the situation in Europe.
It is clear that

* "V *

Congressional

production will be conreshaped
or junked.

industrial economy, you can

seen

officially

Commerce Department

un¬

of
government propaganda and pub*
licity activities is not far removed.

the major limiting factor.

gress.

our

countries, each with its

•-

be surprising if Republicans now

bankers.

ty of all of our states forming in¬
dividual

"fe:!Sili '--l:

to millions annually. It wouldn't

in industry by

nation's

the

will extend

this consideration to the

wheels

against

tion would shortly be

to export very large quantities of
goods in order to provide for ex¬
change to import coal and other
From

units. Car

are

business

this time. '

Probability is that

freezing out of

procedure

what it claims is

and

ready to desert it completely at

•

up gradu¬
ally from the 3,120 December
level to an optimum of 1,000

half

contributing to a
balanced economy. It would have

materials.

Republicans

production will build

check.

economy,

raw

attainment.

nancial ;

other industries

vital

compromise
both sides of

be booted to 10,000.

can

vestigating"

point of view,- such an economy

put

groups

that a gov*
corporation
Should

First embracing this theory un¬
der former President Hoover,

uhitB

b.OOO

dent Truman's budget plea for a

friger&tor, chCihical factories and

•

doubters

sors

The Justice Department is "in¬

;

would

production aim is

dustry keymen demur, insist the
9,000 pinnacle is beyond prompt

■

Attention

The following gem was solemnly

philosophy

vernment

median.

chance

invest¬
would
have
its
own
currency,
ment banker pipelining of funds.
tariff and
immigration borders, "No comment, we're just invest¬
patent practices and laws pertain-. igating," was the laconic reply of
ing to trade, its Department of a Department spokesman when
Foreign Affairs, War Department, asked about rumors that civil ac¬

car

of which cciuld easily
delphia. Office space here
lead into the ramifications of \ mains too deeply in deficit,
credit controls, there's % good
j
*
*
❖

social

Office of Defense
Transportation claims the but*

-•

whether

extend credit to borrowers

cussion

vestment and credit habits. From

The

finds

the

Thus

point of the suppliers of primary
products and these in most part
large
monopolies,
In
another
publication, I pointed out that this
situation was so serious that with

Freight

sighted at
monthly, but this

Capitulation of the Board to
margin dealing may sidetrack a
■broad investigation Iritfr thfe ua-

but

agency

able to obtain funds elsewhere.

being

decision^ 3,650,000> compared with 2,840,000
on this
ut £ the;. f£nd' vt:
S
a
:
\ *
*
*

lawmakers want to sanction the ^

action cBn be predicted.

survival of

Federal

Delayihg tactifcs by souths
fefnerd are- ekpect6d> - but feafly

;

issue will not be

tioh.

Board; Ch&irihatt Ecdes^ tbat^the
issue would be decided by Con¬

Real

year.

stemming from debate;

(Continued from page 393)

tion's, economy as affected by
f government - manipulation
of
the service laboratories of the
credit. Chairman Wolfeott of the
steel industries specified) to the
House Banking Committee had
user the quality of the product he
planned such a study, still feels
must use
for specific purposes,
/ it might be a good idea.
Modiand those of the chemical comfication of T and%■ U devitalized •
jjanies^the ; chemicals they should
Republican reformers- ta a de¬
use for their operations.
gree, but remaining for disposi¬
It is obvious that competition
tion IS the Reserve Board's re¬
and progress are retarded if in¬
quest for permanent' power to
dustrial research is concentrated
regulate consumer credit, dis¬
in their industry.

progress

the tJfusade of liberal Board metn*

^(Continued, from .pa[g6~449)j ^

451
T "n i in" r

another

f,Ciisiilacis 6f UiSfaBiS
■,■■'■

THE COMMERCIAL & FINANCIAL CHRONICLE
imim

r.ri»iiiBH.i.ii

—.

Committee

BALANCE

SHEET

of December 31,1946

now

w'b
My

'•

holding hearings on this proposiASSETS

19,46

■

1945

4,548,208

$ 4,310,677

38,751,045

33,547,564

....

713,520

689,306

Cash

h\t£

■

Marketable Securities*

....

Accounts and Notes Receivable*

CARTER H. CORBREY & CO.

.....

Mortgages, Real Estate and other
....

1,492,607

3,230,299

Stocks of Associated Title Companies

....

679,845

563,755

Conway Corporation

....

4,250,000

....

1,500,000

Investments*

WHOLESALE DISTRIBUTORS
FOR

Title Records and Indexes

'-'ili

ma
"

c.toy

UNDERWRITERS

Total Assets

;

....$51,935,225

$48,091,601
.0

PACIFIC COAST

MIDDLEWEST

*After Reserve Provisions

:•

•

••

,5 a!

•

LIABILITIES
Trust and Escrow Cash Balances

SECONDARY MARKET DISTRIBUTION

Dividend Payable V..

active trading

markets

ALL ISSUES

Accouflts

IMSs

Street, Chicago 3, III.

M-' Telephone STAT EG50i
*

.*•>•■
J

„

;

/' '
•"

'"'

•'

.
■'

1".

O,.?

,.v

360,000

Employees Pension Trust;...

1,456,934
7fy

1,712,992

....

12,000,000

•

2,105,725

$48,091,601

Total liabilities... T*

mf
provided by statutes ofIllinois have beeft pledged to
qualify the Company to do business and to secure trust and escrow cash balanceS.

Assets in the amounts

Street* Los Angeles 14, Calif;,

Teletype LA 255

Telephone Michigan 4181
%-:;i

8,000,000

Undivided Profits

♦

;SH>i
:

; -i-- -

2,240,217

v....

Surplus,
;

Teletype CG 99

i •
»frnmm

:W0"BRANCH -OFFICE
650 South Spring

1,694,782

,,\y

Capital Stock...v..

135 South La Salle

$20,233,943

.$20,654,590

Payabie, Taxes ahd Accruals.....

Provision for
Reserves,

Itt-'tr.r

...

Deposits as Indemnity against
Specific Title Guarantee Risks

Cash

i-r.

'■'»

:,tXo j

iM.

;.v i

i. ».■

P
Is

s-' ri

hkv i -v

THE COMMERCIAIirft>FINANClAlJ CHRONICLE

452

Business and Finance
•f

(Continued from page 450)

•I'/"A '
and

'■

union labor.

vision and

„

Co., of; course, sees this future
of the creator of new and improved

American Locomotive
*

through the eyes
forms of motive power. We are going through our own
modernization and expansion program to meet current
and future demands of the railroads. We are doing more

Contrary to historic industry practice, we ara
going through a transition from one kind of production

than this.

another.

For

century,

have been

leader in

manufacture of steam locomotives. In

1925, we in¬
troduced the nation's first diesel-electric locomotive. To¬
the

day, after the interruption of war, we are prepared to
continue Our long-held leadership in the motive power

diesel-electric locomoproduction methods.
-

field through the production of

lives by mass

^Wljiile; manufacture pf^ste^

will, cpntinue

the interests of customers, both foreign and
domestic, who prefer steam motive powetf we have
met squarely the trend to diesel with the same engi¬
neering skill and experience which fathered our leader¬
ship in steam. We have backed with $20,000,000 our
faith in the railroads' future, which sum has been spent
iii research and development leading up to our new line
to

serve

Speaks Alter the Turn of the Year

these

' v'<*

•

imposing problems in labor relations and govern\
inent bureaucracy, the railroads can take comfort in the
fact that, more than any other; industry, they have a
'I successful experience in dealing with government super-

new

able, during 1946, to
protection.
:
;
.-J.
•
,v
Sales-wise, the outlook for life insurance during 1947
is good. Spot-checks at various income levels indicate
the probable existence of a much larger market among
policyholders now under-insured than the present life
insurance field force can reach. And, as it is expected
that 1947 national income will at least equal that of

some

built in

to the demands of the railroads, them¬

answer

only 20% of locomotive orders were for
diesels. In 1941, this proportion had grown to 76%. To¬

selves. In 1935,

day the figure is about 90%. Our own estimate
is that diesels will constitute 93% of our

steam only

7%.

for 1947

production and

•

Mtt is our intention, however, to observe and test continupusly all: ideas, for ;tbe improvement of motive
power. Right now. we are . engaged in combustion tests
for the development of a coal-burning gas turbine
locomotive, and we will build aj locomotive of this type.
Some of our engineers are following closely the develop1 ment of atomic power as it might be applied to locomo!

-tives^ although we think that such development is,20 to

U 40

years away.

think the outlook for the railroads
f IS bright. We are banking on that future with aggressive
| planning designed to match-thje progress of the railIn

summary,

inroad industry.

;;

s'L'u

".....

President, The Guardian Life Insurance

Company

of America

The year just closed was the best year in the history
;; of the life insurance business.
Total life insurance in
-+:force increased 12% (to $174 billion) during 1946 and

40% since 1941. Avefaged that

is up

means

'that

life

1946

insurance

large number of first-time pur¬
the year.
marketing problem differs from
that of many other businesses in this important respect:
with rare exceptions, even the best informed buyers do
not purchase life insurance of their own volition; the
business is almost entirely dependent on personal sell¬
ing, in a field where technical knowledge and profes¬
sional integrity are an absolute must.
Continued low interest rates, increased operating costs
and legislative problems are of current importance. But,
A-L*
AMkift
TAmaI
An
for the present, and perhaps for several years to Come,
the major concern of life insurance management—and
about the only real limitation to the volume of business
that can be done—will be finding, employing, training
and supervising the type of fieldmen and women capable
of delivering the kind of information and service the
American policyholder demands.
1946, there should be

chasers
The

of life

$3,300

;

about

per

1941.

million

family
There

men,

average
are

now

women

and

«-»

by
about 50%.
Payments
policyholders and their bene/'■ ficiaries
reached
$2.8
billion
in
ord

1946,
dividends
to
policyholders
making up $500 million of the total.
Reserves to guarantee the payment
benefits

future

these

billion

reserves

increased

during
now

the

total

more
James

McLain

year;

nearly

.$42
In

* *V

•aa? jr%. «.■*.

—

' fHI.

—

J*.

we are

find greater unity and tranquility in our industrial life.
The railroad industry is making an enormous contri¬
bution

postwar

prosperity in America

its far-

reaching
ties.

Southern Pacific Company handled its greatest peace¬

program for modernization of plant and facili¬
If that program is to continue, the railroads must

allowed to

earn the money with which to pay the
Right now wages and the cost of materials and
supplies are taking too much of our gross income.

freight in 1946, but except for a federal
credit carry-over, it would have suffered a financial

bill.

loss for the year.

This situation was brought about
by large wage increases; heavy taxes,
than federal income tax; and

:A' ,'i- >v-':

R. W.MOORE

■

The increase in the carbonated beverage business ex¬

skyrocketing prices of railroad sup¬
plies, without an accompanying com¬
mensurate increase in charges for

during 1947 will be a renewal of the rapid
growth experienced by the industry during the prewar,
years. From 1935 to 1945 the volume
of sales multiplied about four times.,
Neither the depression nor the war ^
nor
the subsequent problems have ?
curtailed the interest in the industry )
n or the demand for its products.
More
and
more
people in this *
:
country and
in foreign countries s
have acquired the habit of using soft i
pected

railroad services.

Prospects were brightened con¬
siderably by the Interstate Commerce
Commission's decision of

17.6%

December

average increase of
in interstate freight rates for

granting

the

country as a whole effective
January
1,
1947,
and
makinjg
permanent
the
10%
increase
in
passenger fares authorized as tem¬
porary relief in 1942i* However,*it
remains to be seen whether this will

drinks

the

and

carriers'

alone.

quenchers, as remixers. The industry

have developed
merchandising
methods and^
companies

<
•

production

facilities

to service \
expansion I
will be an

important part of the future growth
the industry.

•

the

railroads.
the

thirst

sales programs designed
the increased demand. The

production, with a consequent drop in prevailing
high prices of materials and supplies needed by the
In the past year, more

the

new

mass

freshers and

A. T. Mercier

needs, even though traffic volume
continues at the present high level.
;
Much depends upon how soon the nation can over¬
come its reconversion difficulties and get into sustained
meet

President, Canada Dry Ginger Ale, Incorporated

other

end,

year

Canada

R.W. Moore

Dry

Ginger Ale had

seven manufacturing plants under con¬
struction in the United States and the. company has jusi

than $50,000,000 has been added

company's cost of operations by wage increases
At the same time, prices of practically every¬

completed two new plants in Cttba. Th6 number Of new.
license agreements and applications for the sale Of Can¬
ada Dry products In the United States and in foreign
countfies is a firm basis for anticipating a considerable
expansion in business.
The gradual settlement of the current post war dis¬
turbances will benefit all types of business and I ex¬

required to handle the present diversified traffic as
needed for the wartime peak, and further that the

pect the economy will adjust itself to a level of opera¬
which will be more normal. Under such condi¬

tions

tions, beverage companies will grow and prosper.
At the present time the carbonated beverage industry,
is restricted by sugar limitations and machinery short¬
.

An increase in sugar allotments is anticipated and
hoped that sugar will be available in greater
amounts than can now be foreseen. Bottling machinery
.and equipment should be increasingly available as the
ages.

quantity loaded per car is commonly lighter and the
shipments are consigned to many destinations, calling
for numerous switching operations.
It is important to the welfare of the country that the
railroads be permitted reasonable earnings, to maintain
sound credit, so tliey may continue to improve their
services through the purchase of new modern equipment.

year progresses.
In spite of current

problems and limitations, I antici¬

pate better business during the year and I am most op¬
timistic about the future.

^ i (1)| Individual life insurance holdings, considered
few yeats "ago; fall from 30 to 50% short
of meeting minimum requirements today. Much of the
new life insurance placed in 1946 was purchased to
bring
Individual programs up to date; a father who had hoped
that $80 a month would see his son through college
bought enough life insurance to step the allowance up
to $120; two partners, reviewing their business purchase
agreement, decided that $50,000 (about right in 1941)
; would hot be) enough apd' increased their protection
40%; ja' veteran who said thatrhis .$10,000. of. National
Service Life Insurance .was. an "awful lot of dough"
made a realistic analysis of his family responsibilities,
with the help of the agent who persuaded him to keep
his Government policy,) then applied for $5,000 more
with a ■ private company. Those are random illustra¬
tions that can be duplicated many times in the daily
Tun of a life insurance company's new business.
(2) National income, high during war years, topped
all previous records in 1946, when income payments to
individuals aggregated close to $164-billions. As more'
people shared this income than ever before, the spread
a

G. METZMAN

insurance sales increased

proportionately: it is

estimated that the number of people insured went *ip
the total at the end of 1945? In addition

2 miUioh over

C. BEDELL MONRO

President, New York Central System

Headaches replaced profits for most of the airline in¬
dustry during 1946, but despite the obstacles, the airlines
made vast strides in virtually every phase, of operations.
The year
1946 was one during
>.

■

creases,

and

|the

which the airlines lost vast sums of

suits,

„v

necessities

our

scientists

astounding discoveries, new devices were-invented and
techniques were developed, so that today this nation.
and the whole world stands on the threshold of a new
era—an era which contains high promise to all mankind.
new

only result in a new and;
favorable concept of commer¬
can

cial air

able

Gustav Metzman

but accumulated experience»

money

which

portal-to-portal

an effort to secure unconscion¬
gains, wholly unanticipated by
labor,
threaten with
confiscation
many of the industries against which
this litigation is directed.
This country, thus far, has suc¬
cessfully emerged from the stresses
and strains of a gigantic defense ef¬
fort—an effort which finds no paral¬
lel in past history and which called
forth all the resourcefulness, inge¬
nuity and skill that could be brought
to the task. Under the whip of war

President, Capital Airlines

Any worthwhile appraisal of the outlook for the
transportation industry for the new year must neces¬
sarily be based on the outlook for industry generally.
Unfortunately, that situation is not
too clear.
Labor organizations are
in a competitive race as to which
can
secure
the greatest wage in¬

■

of life

If the promise of the future is to be fulto avail ourselves of the opportunities
before us, and if we are to capitalize on-the gains that
have come out of the travail of the war effort, we must

time volume of

year

ample-just

V»

filled, if

A. T. MERCIER

tax

that power.

billion.

clouded by industrial uncertainty and labor
unrest, sharply reduced savings and increased living
costs, the record expansion of life insurance was influfenced most by two things;

gathering and transporting of freight under peacetime
conditions is generally more expensive than in wartime.
Much of the war traffic moved cross-country in whole
trains loaded to capacity, whereas in peacetime the

than

tf AA V* A

/\Y

Vw rt

were

New purchases of life insurance
exceeded the previous year's rec¬

President, Southern Pacific Company

are

I'Children insured.
5

insurance sold during

insurance

life

through years of experimentation as the
everything that has been tried. If there
were anything better, we would have had it a long time
ago. .That system has brought to the people of this
country standards of living, standards of education and;
other comforts that outrank those of
any other country
on the face of the globe.
Our basic necessities are the
luxuries of others. That system contemplates that each
contributor—labor, management and capital—to the total
result will receive some compensation—an incentive
reward so that he may be encouraged to continue his
contribution.
It is imperative that each continues to>
receive its just and fair compensation. Labor must not
insist upon taking all of the gains because to do so will
dry up the essential reservoir of capital;
- We have reached a stage in our industrial life where
1
Vv
V**: *<mT|
-V*
1_
labor wields tremendous power. There should be sober
determination on its part as to how wisely it will use
net residue of

thing used in railroading reached all-time peaks. For
example, compared with 1040, purchase price of fuel oil
in 1946 had increased by 62%, railroad ties by 157%,
railroad rails by 40%.
It should also be noted that practically as many trains

protection for each American family
increased from $4,000 to $4,500, com-

t pared with

of this nation

JAMES A. McLAIN

principle of

enterprise—the profit and loss system, „or, a3
prefer to call it, under a capitalistic economy. That

system is not perfect, but it is workable and it is prac¬
ticable. It has evolved as the free choice of the people

electric

plant was

was

private

station

This modern diesel-electric manufacturing

In this country industry operates on the

another large group—
in the past—who were
purchase more nearly edequate

buyers, there

insured for very small amounts

of diesels. We have built the world's most modern diesel-

plant at Schenectady and have introduced a
assembly-line system for the mass production of
diesel-engines, We have perpetuated a long-standing
manufacturing association with the skills and reliability
I of the General Electric Company.

:yhutsday,-Janvary^23i*194^

transportation.

During one of the financially andV
operationally most difficult years in
our
history, we managed to show
enormous gains in passengers flown
and in mail, express and cargo ton,nage; all of
which were definite
proof that a potential exists for an

ever-expanding ,air transport
industry.
The airlines, generally speaking,
have found
/

are

finding their way

out of the woods of current diffi¬

C. Bedell Monro-.

"
they will but follow the paths xii planning and forei
sight displayed in surmounting previous obstacles.

culties.

Their

future

assured

(Continued Gn page 454);

•

[Volume 165

THE COMMERCIALS & FINANCIAL CHRONICLE

Number 4562

tions, tend to be quite different
under profitable as compared to
non-profitable operations.

continued from
policies
heart

are

the

industrial

competition"

have

stability

allocating to labor
share

points of reference for fixing them
competitive economy. have ever been devised. Such an
This aspect of wage policy is of argument does not bear up on
greatest importance in the mass close analysis. Industry-wide wage
production industries whose plants policies existed rather generally
compete in a national market. The even in pre-collective bargaining
Uniform common labor
standard wage which becomes ef¬ days.

from sale of

under

"fair and

the

returns

joint product. Nor

much attention given to wage
differences as a factor in the di¬
so

of
labor
mobility. Al¬
though the traditional and rela¬
tively simple functions of wage
determination are still in the pic¬
ture, they have been overshad¬
owed by policies designed "to
take wages out of competition."

bearing
nation

the

widespread

labor

now

on a plant-by-plant
is an admission that

made

which

the

made

very
clear in
Most unions and -against competitive upsets." In a
employers would resist such few instances,
employers even
was

delimitation of the functions of

collective

Industry-Wide

effective, moreover, during
period when labor's economic
bargaining power was probably
never
higher.
Relatively high
wage and labor standards could
be and were achieved. The poli¬

Bargaining

are

sig¬
they
'*•

are

the economic

set¬

December 31, 1946

At the Close of Business

•

ting in which they

were applied,
f, Since 1941, relative production
costs and prices have had but
kittle bearing upon whether or not
sa,plant could be profitably oper¬
ated#' Efficiency on the job has
mot been

Stocks

At the Close

of Business, December 31, 1946

quite

was

these

possible

circumstances to

by rigid application of

wages

fixed
standard of fairness and equity
without adversely affecting full
employment and without forcing
very much productive equipment
out of operation.
Wage determi¬
some

are

rapidly

moving

now

consumers

will

nnless management and their em¬

ployees turn in
for

the

pretty good job

consumer.

The

circum¬

stances

surrounding wage deter¬
mination are about to change ma¬
terially.
The labor cost consequences of
many proposed wage policies and
the
influence
of
these
policies

8,874,223.44
2,638,696.13
83,236.28
$527,890,807.70

Liabilities
Cash and Due from Banks

DEPOSITS

U. S. Government Securities

349,71

Demand

Other

Credit, Credits and Acceptances

for

Reserved

Banking House, Improvements, Furniture

Surplus

Paid

9,00

7,00

______

Undivided

Customers' Liability

Taxes

Liabilities

CAPITAL

and Fixtures
Other Real Estate Owned

15,57

Funds

Public
Letters

132,76

(Savings and Commercial)

Time

Loans and Discounts

3,87

Profits

a/c Letters of Credit,

Acceptances, etc.
Accrued Interest Receivable

0$28,590,270.56

Overdrafts

assets

and

Other Resources

are

in
pledged

securities and $500,000.00 of other
to secure Public and Trust Deposits

for other purposes as required or
STATE

CALIFORNIA

City and County of San

Capital Stock
Surplus

Dividend Declared, Payable Feb. 28,

1947

and swern to before me this

CORRECT—Attest: Henry Rosenfeld,

Reserve for Taxes, Interest, etc.

Other Liabilities

Sidney M. Ehrman

Arthur D. King

11,937,160.90

W. P. Fuller, Jr.
W. F. Gabriel
W. L. Gerstle
Clara Hellman Heller

Henry
R. S.

Frank B. King
Samuel Lilienthal

Rosenfe?d

Shainwald

Guy V. Shoup
Frank E. Sullivan

E. C. Lipman
F. L. Lipman
Wilson Meyer

J. D.

Zellerbach

Deposits

the relative competitive po¬
sitions * of
business
enterprises
have
frequently been ignored.
upon

Such
of

evaluation is

developing

meet

the

wage

needs

vital part

policies

SAN FRANCISCO •

reconversion.

It cannot long be side-stepped by

insistence that all will be. well

if only
wages<.generally..;are in¬
creased
sufficiently to provide

enoughpurehasii^^

Market at Montgomery •

Broadway

D. Nichols

Henry D. Nichols
R. H. Rebele

I. W. Hellman

James Flood

J. A. Folger

$355,922,361.68
57,577,506.94

U. S. Government Deposits

W. P. Fuller, Jr., Henry

F. J. Hellman

Edward H: Bell

Liability a/c Letters of Credit, Acceptances, etc.
Deposits
Time Deposits

1947.
City and County of

second day of January,

for the

DIRECTORS

Unearned Discount

Demand

Francisco j

Nancy Everett, Notary Public in and
San Francisco, State of California.

Reserve for Contingencies

Total

permitted by law.

SJf

Wallace,

Subscribed

Undivided Profits

}

Cashier of Wells Fargo Bank & Union Trust Co.,
being duly sworn, says he has a personal knowledge of the matters
contained in the foregoing report of condition and that every allega¬
tion, statement, matter and thing therein contained, is true to the
best of his knowledge and belief.
R. L. Wallace, Cashier
R.

the

rejecting prod¬
highest cost and poorest
quality. Neither profits security
nor job security will be possible
ucts

56,938,182.40

resume

55,335,532.52'
1,602,649.88

Owned

Estate

Real

RESOURCES

competitive relationships because
competition was suspended. We

their function

Estate

Liability for Credits and Acceptances.
Bank Premises', Furniture and Fixtures

Other

600,010.20

•

Customers'

nation involved little attention to

time when

•

Real

stock

••

Bank of S. F.)

Discounts

and

Loans

Stock in Federal Reserve Bank

under

set

LOANS

323,722,398.01

Securities—i

$480,000

Federal Reserve

Other Bonds and Stocks

Supreme

Other

and

(Including

135,034,061.24
-

311,642,773.89
12,079,624.12

Securities.:

Bonds

Other

ST. LOUIS

$100,493,745.49
34,540,315.75

Bank

Other Banks—

With

INVESTMENTS (at not exceeding market value)
U. S. Government

Now

Resources

Reserve

ST NATIONAL U

the war and then for reconversion

Consumer

Federal

with

and

Hand

termining whether an employee
Itept his job or lost it. An insa¬
tiable demand for goods to fight

purchasing power, substantially
eliminated
marginal
considera¬
tions from
business operations.
Every resource was mobilized for
production irrespective of the cost
of its use.
The public debt was
astronomically increased to make
all this possible.

CASH

critical factor in de¬

purposes, backed up by the crea¬
tion of an unprecedented volume

INCLUDING TRUST FUNDS

NOT

STATEMENT

CONDENSED

locust

Membe+Vedejrafpepostiimtiw

Olive

wide

(Continued on page 455)

cies and programs which produced
such notable improvements in the

well-being of employees
nificant, however, only

policies designed to elimi¬
that form of "unfair com-

nate

Those who oppose any kind of
industry-wide collective bargain¬

industry

introducing

wage

came
a

unionization as a means-

welcomed

bargaining.
o

and industries.. The influence be¬

The

competitors.

our

early 30's.

many

movement

which is making its influence felt
for the first time in many plants

equitable way to make a wage in¬
crease is for the entire industry
to move at one time to insure

dent need for some such program

before we can agree

it, we have to be assured that
increase will be

similar wage

it is impossible to attain any sta¬
bility in wages despite the evi¬

goals except in
is

This

for

heed

The

increase but

basis.

have a vital

there

that

sense

of wage determina¬

leader" type

tion was quite

demand has arisen to require bar¬

process.

as new

not uncommon and

gaining only

the wage determi¬
They cannot be

upon

throughout an industry were
the "follow the

rates

ap¬

general. ,; ■
'
industry-wide
wage policies was widely
em¬
wage standards of those who are phasized by management in the
not on the edge of disaster. Such
30's. One often encountered this
great risks are entailed in the kind
of
employer position
in i
establishment of
any
industry¬ negotiations—"The employees of
wide wage standard that a great my plant are entitled to a wage

wage-rate
establish equal
pay for similar job titles, and to
secure job rights through senior¬
ity rather than performance are
but a few of the goals of the labor

appraised

if rigidly

can,

great deal to do in

determining the number of com¬
panies and the number of jobs
which will be placed in jeopardy
as a consequence of protecting the

area

now

there

plied, have

To prevent "unfair competition"

movement which

our

fective

rection

by eliminating
differentials, to

making different products has had
unstabilizing and even disastrous
results. It is also frequently con¬
tended that industry-wide wage
standards
cannot equitably be
established because no practical

standard

to attain reasonably full employ¬
ment
and
maximum production

support wage increases. No longer
emphasis placed so heavily upon
wage determination as the means
for

stabilizing purposes has a critical
importance as respects our chance

equitable"

formulation

;

wage-standards to unlike concerns

wage or a standard wage increase
as a sort of fair
wage per se for

many new

advanced

been

Wages and Industry

The

relations

In the search for wage
reasons

[

the

conflict.

and "fair

Applying.... thesame

industry.

392)

page

much

very

ing find one of .their most telling -•
arguments in the virtual impos-,
sibility of adequately defining an 4

Market at Grant Ave.

Established 1852

Member-Federal' Deposit Insurance- Corporation

23* 1947

Thursday, January

THE' COMMERCIAL & FINANCIAL CHRONICLE

454
~Vrv.. •'-*

J';"v

Bnsin„ess nnd ^ance Speaks Alter the Turn of the Year
(Continued from page 452)

$ caused by

factors beyond our control. Unprecedented expansion, general economic conditions, arid the
t expenditures of transition and growth are circumstances

many

come

tion

for financial losses.
'
v
Two hotel strikes — one in Washington and the other

—

imately $250/000.. >
1
v

picture

was

cash

months ending. But we

cussed and discussed in the 12

conviction

the

that

national

industrial

economy

immediate

£ will enable us to provide speedier, more luxurious and

future

wide-

wholesale drug

and. severity.

gencies beyond

our

the

that

tributed

strikes and other contin¬

However,

factories

our

costs,

control prevent

from

operating,

war.

filled

^Spring.
/

Capital Airlines' 20 years of operation, we have
many serious situations. Today's is no different

than

some

of the

others. We

reasonably

them and went

overcame

will bear

the

1946. Following V-J Day the

was in

efritire country anticipated there would be an

early return to normal manu¬
facturing operations with full em¬
ployment. The" reconversion period
did

whether

the items such
companies depend upon
large part of their volume were

way -of

lip to expectations.
I Our company increased its branch¬
to

total of 86 at the end of

1946

all-time high in number of op-

—an

$ erating

points.

branches in 1941 and reached

war

low
£.

are

feel that time will be in 1947.

The finance business depends a great deal for its time
I sales volume upon the sale of automobiles, refrigerators,

year

business

depends upori ;

do not have seri¬

life, will

year/

use

will

see

^deep-freeze units, radios and other electrical appliances.
Generally these items have been made in reduced quanv-tities compared with anticipations. It is to be hoped that
^rthe many difficulties which the manufacturers of such
litems encountered in 1946 will not be present in 1947.
-

the

worker's

buying

power

lation pattern,

strikes, lower
and
I

per

ultimately
am

it is possible the automobile industry

make as

may

company

unsettled

|many as 4% to 5 million cars and trucks. 1946 produc¬
tion for these two items will probably not exceed a total

;

of 3 million units, so an increase even to 4y2 million
would represent a substantial addition of vehicles, all

the

market,' through further

ucts of their

wage

increases, the prod*-

labor.

number of which

large

.>a

doubt will be financed,

WILLIAM J. MURRAY, JR.

based upon past experience.
*$.. Another important department of the finance company

ijls the purchase of time sales

paper

with used

cars as

col¬

lateral. During the prewar period there was a consider¬
able volume of such business. Then the average new car
dealer handled 2 to 2% used

cars

for each

car

new

sold,

it is felt there will be a -return of used
.s.jfcar volume somewhat in proportion to the prewar exfin due

•

course

perience. '•
v

Under

President, McKesson & Bobbins, incorporated

Competition in the wholesale drug business will be
as more selective buying comes into the
market on the heels of an increased supply of merchan¬
dise, released by the lifting of wart time
production controls.
<
As in past years, the wholesale
drug industry may be expected to
reflect the trend of retail drug sales
which are governed by the. amount
\ of disposable income in the hands
of consumers. Profits, however, will
depend more thkn evef on efficient
K
operation, to; compensate for the inkeener in 1947

;

•

present-day conditions the purchaser of

an au¬

tomobile is required to make a'one-third down payment
fjbnd

complete his purchase in

Irionthly instalments. This is
feral Reserve Board known
;

Regulation has

months with equal

requirement of the Fed-

Regulation W. While this

not greatly interfered with the time sale
•

business to date, it is felt it will have to be liberalized in

flue

•

course so as

the time buyer.
; \
i
j Many finance companies before, during and after the
„.

War have broadened their activities

•

bn various forms of

/During the

war we

and have

focused

Wm. J. Murray, Jr.

financing in addition to time sales.
became engaged in the

ing business, thus creating
ness.

Some
t

a new

flhMbii

handling and transportation costs,

The jkvi vypci ocxccuuit ctiiu training at SalesmenJmustxalso
jl in.* proper selection
and naming oi sa^ei

in our busi-

| their industrial departments, engaging principally in
Jhe purchase of a"chdhhtkteCeiVhtflo,tact6riii%t^

operations must be Conducted with
the utmost efficiency to offsdt high-

manujfactur-

others, ■inclfldi^ 'ourSelVeS. hWe fexpimded
^
*
f
v
'
*
■
.

upon' which wholesale
distribution depends .gives renewed
emphasis to the importance of labor

■

.doing business. • The comparatively narrow margin

of'."profit

to permit -a normal How of merchandise

||io

declines in electric
during the first six
this year for the country

whole
area

reached the weekly increase
recently recorded for the

not yet
of
A.

Neal

18%

United
For

not experienced in
conversely, we have

were

but,

States.
the

1946

year

show

slight gain in total kilowatt-hour sales and a 5% in¬
crease in revenue from the sale of current.
Reduction in
by government agencies related to the war effort,
a change to a five day week in most departments of
District Governments caused a material,

use

the Federal and

\ of which are greatly needed by the American public and

.
•

this

and

sales and revenue even in
periods like that of the

months of

sufficient number of sound thinkers to bring

agement to avoid the dire consequences of pricing out of

steady growth of the

sales

energy

are

about the necessary cooperation between labor and man¬

con¬

year just past.
The
heavy

optimistic enough to believe that labor has within

its ranks

energy

and steady income of govern¬
ment
workers
tends
to
maintain

If so,

area,

of the worker's

likely to have many
man-hour productivity, higher prices,
depression.
we

caused in most instances
by industrial loads, are not exper¬
ienced in this area. Our stable popu¬

envelope.

prices, then

fluctuations

Wide

Thus we will, in my humble
opinion, develop this period of great' business activity
beneficial to all of our citizenry. If on the other hand
labor is unwilling to follow this program and insists upon
continuing the practice of contributing to the spiraling
of wages and

of the electric power

sumption,

increase in the number of dollars in

Company t

industry, in •
the Washington, D. C. Area are similar to those in other:
portions of the country except in one major respect.
The characteristics

reduction in prices to the consumer and
the

continue at a satisfactory

we were

President, Potomac Electric Power

will

arid

received

OPA,

A. G. NEAL

its influence'to

develop a spirit
Earl R. Muir
among the workers, leading to
greater productivity per man-hour,
and if workers are willing to cooperate with employers
to the end of reducing the cost of the finished product,
own,

dollar, without

Morris

therefore prepared to handle
greatly increased volume when it materializes and we

during the early

relative increase in

years.

our

operated

new

whether
bad

dedicated to the creation of con¬
fusion and to other.Ways of life than

anticipated; hence the 1946 vol¬
ume for finance-companies was not

that

are

manufactured in much less quantity

people.

many

break the hold of those leaders who

vthan

;

nation has ever experi¬

fail to

If that large seginent of labor, which
is thoroughly sold on the American

finance

fbr

labor difficulties during the

ous

result that many of

seems

during this
.

with

not foresee

our

develop the

will

have good business

which

problems

many

minds of

immediate

or an

rate.
required for the greater part to
manfacture at levels prevailing in 1946 and to sell at
prewar prices, in spite of labor increases exceeding 66% .
and material increases of 25% to 35% in many lines..
The demise of OPA will have the effect of bringing
about a more realistic relationship between manufac¬
turing costs and selling prices of our products.
There has been no serious labor unrest in the com¬
pany, beyond the reiterated request that wages and sal¬
aries be kept in line with increases in the cost of living.
With regard to inventories, we followed the practice,
common with other manufacturers of buying materials
as and where we could find them, with a resulting lack
of balance.
This condition should soon be corrected by.
the expected rise in shipments during 1947.
Under

do so and enter
upon a period of de- i;-.
pression, is the question foremost in
|

The outlook for the finance business in 1947 is more

| promising than it

be able to

business potential

Company

high level that

shipments in 1947.

Orders

The year 1947 starts with possibilities for the begin¬
one of the most prolonged periods of business ac¬

Investment

Chairman of Board arid Director, Associates

introduced

current fiscal year.

ning of

enced. Will

diffi¬

particularly
during the first half of the year.
This situation is im¬
proving slowly, so that we anticipate marked improve¬
procuring material and supplies,

culties in

the

over

Metals, Inc.

greatly hampered by

1946 sales volume was

President, The Louisville Trust Company

tivity at

manufacturers

the basis for

ment

E. M. MORRIS

PHILIP G. MUMFORD
President, American Machine and

EARL R. MUIR

out.

our

operating

in comparison to

our

prospects for

good business

remainder of

„

J. D. A. Morrow

f bri to bigger and better things, more and better service.
Ms. Without feeling that I am displaying the traditional
^January 1st optimism, I am confident that our airlines
•—and all the others—are just beginning to realize their
full potential. I am certain our collective record in 1947

•

the

and

due to higher

increases will be less marked
other types of merchandise.

backlog of un¬

additional sales provide

faced

orders

that while'

There is reason to believe

price rises are inevitbale,

some

;

Company's present

enviable record of

prices. Trade investigations show
general price level of most commodities dis¬
by wholesale druggists has not changed since

the

before

many

'tl947 probably will see a vastly-improved financial
picture in the airline industry although it is possible
/ that* some economic difficulties will continue until

drug industry has achieved an

The

holding the line on

unpredictable

except

procedures
both aground
'/ and aloft. The day of all-weather flying, with the aid
; of electronic devices, is nearing reality.
new

generally

1947

for

outlook

the

makes

prosperity,
favorable.

in the

duration

to streamline the handling of passengers,

to move more
retail trade.

seeks

industry

industry remained stable during
the war years and has had no serious reconversion prob¬
lems to face. Its strategic position today, at a time when
the
efficient
distribution
is vital to the country's

substantial

economy

retailer

national
and more

merchandise into the channels of

readjustments must be made in our

of airline operation. New aircraft have been developed which

dependable service. We have instituted

cognizant

are

spread

know great strides have been made in all phases

which would

account sale basis.

J. D. A. MORROW

jp'?We in the air transport industry, have been much

in putting

of the wholesaler

goods in circulation between manufacturer and
will
become
increasingly important to the

President, Joy Manufacturing Company

lightened by

country approach¬

productive capacity of the

With the

ing new heights the function

The

several factors.

•

or open

economi¬

the public at

cal costs.

the economic picture of

broad consumer way,

on a

will demon¬

confident that this program

drugs and medicines to

necessary

through making it possible to mer¬

ones

possible

{

The bleak side of the 1946

•

new

chandise items in
not be

were examples of uncertainties which
added to our losses. While the hotels were strikebound
in these cities, we underwent a revenue loss of approx¬

/in Pittsburgh

ability of the industry to expand its operations
in 1947 and to fulfill its essential function of distributing
strate the

this country is fixed. It has contributed in no small meas¬
ure to the expansion of existing industries and the crea¬

riot Conducive to profits and probably the paramount
reasons

is promising. It's place in

barked.

machinery and fixed asset loans. There appears to be a
Considerable field for expansion in this direction
due to a great many industries needing financial assist¬
ance for expansion and
operation of their business.
The outlook for the finance business for many years to

very

Many of the nation's airlines, including Capital, lost
heavily during the past 12 months, but those losses paid
for an unestimable amount of know-how and were

a prime consideration of manapement.
a pibrie Consideration of management.

of %very progressive drtig. wholesaler; hnd hhve been
gjhbodiedb* a rCsbareh program ripon-which the Natiori-

As¥o'ciatlC>fl tiak

reduction in power

consumption, but this has been con¬

sistently offset by residential

and commercial demands.

employment and wages, a $.45 per ton or,
cost, and similar increases in ma¬
terial costs has tended to overcome the gains in revenue.
The demand for electricity by our customers reached a
Increased

7.1% increase in fuel

new

peak of 403,000 kilowatts, 4.1% higher than in 1945.
Washington Area, there were 8,000 residential,

In the

Completed in 1946 with a total of 6,000 still under
as of the end of the year. Even though ma¬
terial and labor have been in short supply, the Company
units

construction

has been able to
up

needed service
keeping abreast of new re¬

provide those who have

to this time and is now

quirements.
Future

bf a large

backlog of demand for some

to provide for
„

predicted on the ba3is>
40,000 new homes
the gain in population during the war and
*
,
•
>
..
,. ,
..
^

growth in the area is

•

the obsolescence of mfeny^ *>ur
mercial outlets for the area have increased at a .rapid
rate, but many are still in prospect. Although emptoyhient in local government agencies will
,

ocaaaa;--.

tmue to decline from the' pre^ent.%otal of 250,000/itH
creases in permanent office space Will. 'Stali- be necessary
to provide for the minimum of around 210,000 Omployeeg wj1jcj1 are n0w planned for.
This governmen
nlrtvmwxf rorkroceWW »,4fl% frirrpasp
%ldyittent i:epresei^;a^0^^^eaise flwrnrpwaf5

Vast iyitferii
;

•:

i^rovfehtents
^(Continued

on page

•456)'.^.;I;,r^':;'?-

CHRONICLE

TRUST

THE PLAINFIELD

COMPANY
JERSEY

PLAINFIELD, NEW

DEWITT

HARRY H. POND, Chairman

Statement of Condition,

HUBBELL, President

December 31, 1946

6,139,816.33
18,230,537.65

3,816,199.76
703,869.66
2,940,792.63
*

Organized 1866
Statement

of Condition, December 31,1946

ASSETS

Cash

Hand and due from Banks

Loans

56,773.819.18

57,403,921.65

Investments:
NorlU

U. S- Government Securities

:z*

State, County and Municipal Securities

■

" Investment in

78,104.455.66
4,875.866.23

Other Investments

10,131,206.29

Fidgjity^Building Corporation

.Mortgages

Real'Estate Owned
Smith

.....

LIABILITIES

3,037,423.84

1,966.671.42

213,897.11

AMOUNT DUE OUR
U. S. Government

Vaults, Furniture and Fixtures

857.692.21

Accrued Interest Receivable

Other Deposits Subject to

622,399.16

•

Prepaid Taxes and Expenses

•

Other Assets

•

^190,950.04

...

78.098.13

DEPOSITORS-^
Deposits.624,475.32

16,122,182.78

Check

15,796,539.73

Time Savings Deposits

;

$214,256,400.92

DIVIDEND ON CAPITAL

STOCK

Payable Feb. 1-1947

DISCOUNT RECEIVED BUT

LIABILITIES

UNEARNED-

ACCRUALS PAYABLE
Capital

Surplus

Funds set aside to provide for:
V Taxes
—

13,300,000.00

Undivided Profits
Reserve for

6,700,000.00

Contingencies, etc

Reserve Cor Interest, Taxes, etc,.

Other Liabilities

.........

Deposits:
United States Treasury
Other Deposits

4,309,231.65

Pension Reserve

L381,631.69
.

Interest Payable

L146.977.73

83,562.46

and

15,531.56

f Other Expenses

244,266.35

54,474.63
131,094.02

32,000.00

SPECIAL RESERVE
.

—

$ 2,412,316.67

-184,761,976.93

CAPITAL

%
>

Capital Stock

—

Surplus

Undivided Profits
v

Contingent Reserve

$
„

750,000.00
1,000,000.00
364,342,69
300,000.00

TOTAL LIABILITIES

U9mber^Fwi^'1t4mrpe. System and Federal Deposit insurance

corporation

Thursday/ Janilary'23i" 1947,

THE COMMERCIAL & FINANCIAL CHRONICLE

Speaks After Ike Tarn of the Year

Business and Finance
facilities. A
construction budget of $17,000,000 has been • approved

to-

for

requirements

cover

customer

these

1947

-V If

•

t :

•

JAMES S; OGSBURY

have real understanding and common

make 1947

year

of great advancement only if
effort toward

President, Fairchild Camera and Instrument Corporation

and prosperity by all people in all walks of our
*
\'

progress

Fairchild Camera & Instrument Corporation, Jamaica,

national life.

commitments for new .work which we foresee

major projects not to be completed until
1948. Construction work is Under way on a new 50,000

for

Jji,'' '.'y

can

(Continued from page 454)
power

-y.y ' '

JA**

until recently chiefly known as manufacturers of
specialized military aviation and photographic equip¬
ment, enters 1947 with a new and
*
expanding line of commercial prodr,
ucts, the result of several years'
planning and development.
I :
'
New
Fairchild products include ;l

N. Y.,

and

HAYWARD NIEDRINGHAUS

kw. generating unit .at the Benning Station, Benning,
D." C. Many new transmission lines and substations are

President, Granite City Steel Company
In

either planned or under construction. Their Completion is
dependent upon; delivery of materials^ for we find that
some
projects, needed for 1947, cannot be completed
until 1949 due to the delays in fabrication at the factory.
*/• • Preliminary; work has been started ^ on a new power
plant by our associated Company the Braddock Light
! & * Power Company, Incorporated for the purpose of
supplying capacity to the system.^ This plant is to be

spite of widespread belief that

decline in general

■

constructed

•business activity is entirely possible in 1947,
theless appears to us that the steel industry
forward to

■

>■

;

ilize

',;y In

my judgment, the world is still
dition and many problems have not

confused con¬

been disposed of,

but I believe progress

is beii^g made.
If The new year will bring us a'lot of worries and as a
result of these difficulties we may experience some re•*»

normal

relationship to

cessions; however, much depends upon the United Na¬
tions Organization program, the attitude of Labor Unions,

""./■

production

Congress and the Administration.

to seek

uctivity

President, Farnsworth Television & Radio Corporation

ERNEST E. NORRIS
Southern

President,

Railway

tion since the end of the war make it difficult to fore¬

unbalanced

•

-<lH

inventories

cast what's ahead in 1947 for either the railroads or for

Many suppliers sold materials in
large volume to the end-product

companies,

.companies
their
the

but
were

the

finished

end-product

not able to balance

inventories

goods

assemble

quantities for sale to the public. This,
great part, accounts for the fact
while large production figures
for "industry" were being quoted in
in

ii;J/

some sources,

radio-phonographs and

other durable

[

goods such as automo¬
continued in

are

; f
very short supply on the market.
Froth the standpoints- of dollar volume/ dollar-turnOver jind total employees, end-product manufacturers
:

aH^industrieSi

;

manufacture of new commercial products
progressing in line with original expectations. We
confidently expect to be over the majority of postwar
hurdles this year. There is a growing need for the type
of precision products that Fairchild is offering industrial
concerns, because industry is requiring increasingly com*
plex and intricate equipment of good mechanical, elec¬
trical, electronic, and optical design to carry out its
manufacturing programs. As longstanding manufacturers
of precision products, Fairchild's outlook in this field is
encouraging.
Fairchild is successfully cultivating the fields of radio
broadcasting, medicine, newspapers, and other profes*
sions with its lines of sound recording equipment/graphic
arts devices medical cameras, and special cameras.
While 1947 is expected to be a good year, the prin¬
cipal benefits from Fairchild's new development pro¬
gram will not be fully realized, either in bookings or
shipments, until, early i948.^ J"
Our present

from

continuing

monkey-wrenches

into

^
^

to
our

machine, the outlook for
Ernest E. Norris
industry and every person is
gloomy in the extreme.
|
^
r
Being an optimist, I am inclined to believe that recent
economic

sievery

^ompijse'a.-xnajor-:pai^.:.<^?&€'$8cU<> industfy/'affid in feet,
Of

awareness,

restrained

throw

biles and refrigerators,

the part of
everyone, of the vital part it plays in
the economic and physical well-being
and safety of the nation and its citizens. In brief, unless the theorists,
the self-seekers, and the demagogues
greater

in 'substantial

that

„■,

is obvious that industry, including the railroads, must 'H
be given an opportunity to earn a
"living wage"; it must be freed from
unreasonable and irresponsible interference with full production; and
it must be made the beneficiary of a

keenly felt.

Hyi

generally.

However,

most

were

events indicate that all real

Thereitor^ itis vitally important; to
-

«ational

prosperity that these companies succeed m mak¬
ing 1947 a year of highly increased production.

enough,
sist

Americans have finally'had

are now awakened to the danger,
return to the old-fashioned but

CLIFFORD

and will in¬

ernment controls and restrictions are

•*inoved,
us,

and

we are

re-

in the world. If

remaining.

While- sets in. 1946 were. produced

ress

prospects for the gas industry in the year 1947
exceedingly sound. From an industry-wide point of
has witnessed an expanding market
for the consumption of gas and a
,

quantities at prewar levels, they were also almost

is nojy ready to turn

out quality radio-phonograph com¬

;

The coming year

isnoted that

promises.to.be one of historic expah-

tlurty-sik construction

^,rg

perhiits for stations m 19--states,- with 50 more applicationa pending.

Almost .allpf tliese-

can

bo'expected, to

continue unW

will

\l U

among.

swer
swer

fir

•

tHIv11

rtn ti *

hH:

i-rt /111 r*f f»i

1-1

porkers; wUh;war.awir^i^^

the

tionandi
tion and»

in the postwar er.a.
in the nostwarera

nation-wide

tho.

-a1

reconversion;

dif-^

co:
if

•

though, revenues incieased'in,1946,

,j,e (actors that help Industry to find the an-1

distribution
distribution

con¬

ficulties; without doubt the increase !/
In^y sales/.^o£
-wbiildi'h^v^^heep^
greater if reconversion chad * been; A.

to
to the aU-important problem of economical produc-1
all-important problem
produc- j

maii^teriaiicd ... posts /
higher and there werevabnormaHnon^recurnng main*
tenance costs, in

additioq there were increased opera-

'V ^£1
J tenarmecost^ Ih ^tio^
New plants are being built in. the South in increasing rational expenses caUsedrpriniarilyiby the coaLstrikes and,; <
11 The^r Federal--. Communications- - Comnussion,. through ; numbersj and exiSting-plants are:fihdingvit necessary to higher labor costs; ^ j - f j. ! ,« '
\
^\
-/
:W
Chairman Charies R.rpenny, has stated that "Thb Com- Vehlarge in order to keep pace withf the growing/demand i ? High!maintenance ekp^hditures includ
additiphal ab«
mission is convinced that^be • American people want
for their piroducts. Even with "all the restrictions in ef- i
normal mm^reeurringi maintoimce^^^
continud ,
television and that they-need television-. - Tdievision will - v. feet/ the! value of industrial construction in the South I in 1947.; However/ it^vfe"believecl^^^thatviLiabdr^^cmditiori$ ^
begin operation within the [next twelve "months.
M

•

Its attractive;natural advantages, its wealth of natural;
.OTSlu«er
,u.^TO, u»,
rmurcel, jl5 great and growing':cbnsumer markets, its
its

serv-i

A-P1

the FCC has granted

taking place

J Tile- nation! is increasingly' and 'enthusiastically #ware j
oppqrtunity>land for/industry. j

Telecasting.stations already are

now

during 1947 and the years beyond.

revenues,

believe, will

throughout this year. By the
close of 1946, customers of the gas,
utility companies reached a new;
high of 20,835,000, an increase'} of
2.7% over 1945, and total industry!:
revenues increased 4%.
The year 1946, of course, reflects,;^

today flexing mighty industrial

abated

tinue

Southern Railway System. This;

industrialization

Sion in television.

both of which

particularly optimistic concerning the future

increase

substantial

biceps and there is every indication that the tremeridous

enable many new television and FM stations throughout

the air in f94T.

prosperity and prog¬

the South served by the

preparing transmitting equipment which will

the country to go on

view the year 1946

section of the country is

The radio industry

binations, including FM service, in increasing quantities
and also is

are

that is so, then it is my belief that in

greater than any it has experienced thus far.

The

special
that made this country the greatest

1947 the nation will enter an era of

making swift strides toward the solution

entirely of the table model variety.
•

rapidly being

privileges for none,

of the reconversion problems are behind

many

of those

Gov-

E. PAIGE

President, The Brooklyn Union Gas Company

time-proven

system of fair play, with equal rights for all and

pi feel confident that this will be accomplished.

Ogsbury

Although shipments during the year of peak war
production amounted to $47,000,000 after renegotiation,
some comparison as to the growth of Fairchild's peace¬
time business can be gained by the prewar figure for
1939 when total shipments were $2,003,000.

System

The unsettled conditions which have plagued the na¬

business

In 1946, shipments for the first nine months, totaled
$4,177,000, and for that year are estimated at a total of
$6,225,000. The greatest portion of these 1946 shipments
is accounted for by military aviation equipment, which
still comprises the bulk of Fairchild business. 1947 ship¬
ments will probably exceed those of 1946 by 25% to 30%,
but will include a larger portion of non-military business.
Further, in 1946, business booked was just over $7,000,000, one-third commercial and two-thirds military.
Orders expected for 1947 should be slightly in excess,
but will probably run 40% to 50% commercial.

During 1946 the durable goods industries were seri¬
ously hampered by tie-ups resulting from strikes and
material shortages.
This was especially true of endLfYr
product manufacturers, where un■■■■■
predictable stoppages in the flow of
of component-parts and constantly

James

associated lines to

under way.

could continue for some
prices, wages, and prod¬
resolved in the more immediate future.

are

out new,

capitalize on expanded manufacturing skills and tech¬
niques acquired in wartime. The company's transition
wartime to peacetime manufacture is now welB

time if the related problems of

E. A. NICHOLAS

■

from

employment

and

potentiometers for industry.
At V-J Day, the Fairchild organ¬
ization was in the position of many
other companies specializing in one
group of products, in being obliged

steel

finished

for the medical pro-

professional
photographers, ' and
others; mechanical and electronic
equipment for the graphic arts field;
and special mechanical and electrical
devices such as motors and precision

totaled

The steel industry faces 1947 with its facilities in a
position to turn out record peacetime production and
with new finishing facilities being added, with a quality
of steel unsurpassed in its history, with prices moderate
and with labor amongst the highest paid in the country.
The ability to mold these factors into a prosperous year
depends largely upon the willingness of labor to assume
new restraint in its important role in our economic life,
and to realize that an increased standard of living can
come only from increased productivity.
High levels of

President, The Long-Bell Lumber Company

cameras

fession, industrial research labora¬
tories, and advanced amateur and

industry faces 1947 unharassed by "excesses"

prices.

Mm B< NELSON

special

reasonably good year barring major strikes
dependent industries.

approximately 66,000,000 tons which was 14,000,000 tons
short of 1945 due to crippling steel and coal strikes. As
a
result, steel mills have entered the new year with
tremendous backlogs. Finished steel prices have risen
only moderately since' OPA decontrol and while raw
material prices, notably scrap iron, have surged ahead
disproportionately, it is to be hoped that they will stab¬

Virginia and will have an initial capacity of 80,000
/kw. as the first of five units planned for this station.
We are optimistic about the future outlook, particu¬
larly for the area which we serve. It has been proven
to be a community with unusually stable characteristics
with respect to population growth, employment, and
commercial activity.

look

own

The steel

•IlilrV';--';

can

built up in the previous year: production in 1946

the Potomac River north of Alexandria

in its

it never¬

f-:

;

,■-.

not be simply a luxury entertainment

cational potential is unlimited.

service.- - Ita edu*
will-be

powerful communication tool of them-ail.''- f;

Increasing

success

the

most
-

•

is anticipated- in the procurement

totaled

iiearly- one-half

billion doUars in. the-11 months

ending with November last

j
I

year.

Because the; Southern' Railway System serves almost I
every nook- and

cranny

of the South*—including all of!

pf ample supplies of the materials-and- parts required-^- the major cities: except Nashville and -Montgomery—the i

^or themanufacture of television receivers. A number
•■■-.Pf-'echepided pjh^uctiop^mdJglan
:}

nr.','

•-

^inevitab^^e^ris'that demands for ^
■

industries-:will-not-accumulate -irito-"-a- national- dimster^ ^<fcHee

ex-*

and complex problems^ whick' the industry / must ! solvp' ^; p:

region's (mushrooming industriaL and .business , growthv. Irr l947.

■
• thO Sputh^wiliitlJ^durfryrmusb predicate" it^rplan fon the;fpfure-on:;the": ^r/For that reason/-and ndt beiftg:e "pessimist;

jolfer Receivers for sale dn volume at an early date.

from consumers,; • rehabilitation/ dmproviemeM

pansion of existing facilities head fhe list ;of-challenging'.,

optimistic cbnfidence.''^^ :

„

"'Cohfinued oh ^

•

THE COMMERCIAL; & FINANCIAL CHRONICLE

Number 4562

(Volume 465

457

other countries, .arid to piirselves, if periodic economic insta¬
bility and mass unemployment did

Wages and Industrial Progress
dustries

has

given

rise

the

principles

working

(Continued from page 455)

minimize

the differences between them suf¬

question

ficiently to make agreements pos¬
sible.
Some of the most import¬

hands.

ant

of whether or not too
much power resides in the union

principles

relate

wage

determination.
Are

Unions Too

Has the
Wagner
Act
improperly
given
unions an undue bargaining ad¬
vantage?
Positions as respects
these
questions
are
dependent
upon one's appraisal of the func¬
tion
and
objectives for which
unions are legitimately responsi¬
ble and upon one's ideas of the
strength necessary effectively to
carry them out.
Proper answers
cannot be given except in relation
to the kind of wage and labor
standards Which are visualized as
necessary to introduce reasonable
security for employees under the
competitive system. If wages are
to be taken out of competition, as
that term has previously ,been

defined, then industry-wide or¬
ganization of employees, union
security, and industry-wide bar¬
gaining are logical developments.
The argument over

"inequality

bargaining power" cannot be
separated from differences over
the purposes of collective bargain¬
ing.
They have to be reconciled
before we can move confidently
ahead.
So

out

will

standards

lished for the purpose of

substan¬
tial number of companies. If there
itable operation for any

need for management to recog¬

industry-wide stablizing
bargaining,
equally urgent need
for labor organizations to recog¬
nize the importance of collectively
bargaining on an individual plant
basis.
No "either-or" proposition
the

functions of collective
is

there

involved.

some

concluded that if

wide

labor

sary

they

will

established

standards

are

industry-wide and individual
plant bargaining is indicated as
the sound way to make collective
bargaining work.

operation while management has

been loathe to accept the fact that

have
and

government action because of the
inability to get such a function
performed by collective bargain¬
ing. The strike and lockout can¬
not be permitted to
run
their
and to

courses

perform the func¬

inducing agreement

tween the

be¬

parties of direct inter¬

Their

is upon the

pressure

government to intervene.

been

small

profits

tinue

job for the consumer.
lective

bargaining,

sonable

wage

of the

to be the cornerstone
tional labor

na¬

policy there is no sub¬

stitute in any Act of Congress for
the acceptance

break in

and management

expected.
ment

Nor

have

• •

however,
to
shoulder
the
heavy risks and untoward conse¬
quences of living in a competitive
society find little solace in over-,
all, average results.
Especially
are They unimpressed by a mov¬
ing average that smooths out wide
variations in general well-being.
on,

any

steady increases in the hourly
output of the industrial machine
do not provide us with

sense

well-being

of notable

achievement.
Some
ences

the

principal

among us are

differ¬
the de¬

over

gree of interference with

tive forces which can be used to
attain greater

general

field

labor relations,
respects so-called
management security,
and wage determination, the dif¬

particularly
union

and

ferences

are

Congress

lective

about

way

the

efficacy

of these

pro¬

particularly acute.

Most

ized

S. Progess Impressive

Among
lands,

our

the

envy.

people

successes

considerable

way

other

and

some

Other consequences of the
we

been

have

apprehension.
progress

and

fear and

cause

The industrial

made

living

here

the

labor

would

impressive to people

Solve

Walter Purccll 40 Yrs.
With

Coggeskall Hicks

Announcement

should
be

ard

wage.

leaders

the

sound
for them to resolve their dif¬

this

Substance will be given

unanimity

view

only

concepts of collective

bargaining coincide. Nor
a

organ¬

of
management
conviction that col¬

bargaining

can

has

years

c e

11,

w e

has

been

sociated
the

organiza¬

u s

ness

ing

Mr. Purcell, golf champion for
the New York A. C. in 1940 and

1928,

great

Walter

partner

in 1942.

for the

the

ca-

reer, becom¬

of opportunity which

just entered

as¬

with

tion during
his
entire

ing the

have

11-

politan golfer,

to pass in the public interest. Dur¬

known metro¬

Congress may see fit

year

com¬

employee and

such

reconciliation be assured by any

law which

cell

pleted forty

Winged Foot Golf Club in

also winner of several
championships in the. J^ew
was

golf

hope for progress lies in the nego¬

York

tiations for agreements which will

Lawyers

be undertaken

Country Club.

by representatives

area.

He is

Club

and

Issues in which

but

acted

profits

Such

have

of the stand¬
and

rewards

typified

not

transition

and

the

$5,000,000

the

results

expected

joint

manager or

managers

Carnation

it'Mf

Company

Debentures

2 5/8%

4y2% Debentures

2%% 1st Mtge. Bonds

Hiram Walker-Gooderham & Worts Ltd...

2%% Debentures

"Household Finance Corporation

2%%'.S/F Debentures

HKingsport Press, Incorporated.

3J/2% Notes-

Panhandle Eastern Pipfe Line Co
Philadelphia Electric Power Co

Serial Debentures

The

$50,000,000

31/2% S/F Bonds

25/8% 1st

Sydney County Council
"United Wallpaper, Inc
American

Airlines, Inc

Burlington Mills Corporation

3V2% Conv. 2nd Pfd.

Central Ohio

3.60% Pfd.

The General Tire & Rubber Co

33/4% Cum. Pfd.
31/4% Conv. 2nd Pfd.

3!/2% Cum. Pfd.

Light & Power Co

25,000 Shares

McCrory Stores Corp

3 V2 %

35,000 Shares

Rich's, Inc

40,000 Shares

Tex-O-Kan Flour Mills Co

4i/2% Cum. Pfd.

Thalhimer Brothers,

i-■

•

in all

shapes and sizes. Some

look impressive, but have little relation to
the

investing job at hand. Our Research
Department sifts the facts ... selects the
ones that
count, favorable and unfavorable.
For that reason, investors will be

interested in

our

new

series

of "Basic

Analyses"—studies of 22 stocks

ing

General Foods

251,340 Shares

;

come

current investor

attract¬

55,000 Shares

Irving Trust

Libby, McNeill
Ohio Oil

85,014 Shares

Packard Motors

especially interested. There's no
obligation. Address Department "T*9}\

*Technifinish

150,000 Shares

Republic Steel

56,161 Shares

48,499 Shares

Texas Gulf Sul,

'jbi'r

Capital Stock
>-:iT

Common Stock

Uarco

Company of N. H..

Capital Stock

Incorporated.

tlT"

Common Stock

tSpecial offering.

**Secondary offerings.

Our

F. W. Woolworth

experienced Corporate Underwriting Department
equipped to handle all types of securities issues.

Merrill Lynch, Pierce, Fenner & Beane
Underwriters and Distributors, of Investment Securities
f Brokers in Securities and Commodities
70 PINE STREET

fit

KIDDER, PEABODY & CO.
FOUNDED

NEW YORK 5, N. Y.
NEW YORK

BOSTON

i-7<

i»

Common Stock

Laboratory, Inc............. Common Stock

**United Light & Railways

Privately placed.

United Gas Imp,

"Walworth Co.

gi/I

Itfvfl*#*

Common Stock

fStandard Oil Co. of N. J..

16,467 Shares

N. J.

*>;

Conv. 4% Cum. Pfd.

"Owens-Illinois Glass Co......
Public Service

133,142 Shares

Phelps Dodge

Pub. Ser.

i??

....

104,162 Shares
^

UU
i-

Kingsport Press, Incorporated....,...... Common Stock
Lynch Corporation/
Common Stock
McCrory Stores Corp..
Common Stock

75,000 Shares

Schenley Dis.

investing.

Indicate the "Basic-Analyses" in which
you are

Internat'l Nickel

•

■j cm

Felt & Tarrant Manufacturing
Company.., Common Stock
fRobert Gair Co. Inc..
Common Stock

50,969 Shares

Pullman

interest. They're brief,

contain must facts for sound

General Motors

Cum. Conv. Pfd,

3.65% Cum. Pfd.

Corporation of America
Creameries of America, Inc..

.116,986 Shares

3.75% Cum. Pfd.

Container

141,496 Shares

Elec. Pow. & Lt.

Company

Incorporated
United Wallpaper Inc

40,000 Shares

Curtis Publishing

33/4% Cum. Pfd.

25,000 Shares

Commercial Sol."

The General Tire & Rubber Co
Iowa Public Service

60,000 Shares

FACTS!

■),

4% Cum. Conv. Pfd.

42,500 Shares

-•

31/2% Cum. Conv. Pfd.

Processing Co..
Burlington Mills Corporation

12,000 Shares

Coca-Cola

3 % Notes

25,000 Shares

Celanese Corp.

**<

Mtge/Bonds

American Yarn and

50,000 Shares

Anaconda CoppfeW'

'j'b)

$1,200,000
'$30,000,000

FACTS

|S*

3% S/F Debentures

Central Indiana Gas Co

$3,250,000
$25,000,000

■

W-J

*Cavalier Corporation.

$750,000

version through which the cou.n-

Kidder, Peabody & Co,

American Airlines, Inc

$40,000,000

$30,000,000

They

;•!

100,000 Shares

;Facts

Siwanoy

Corporate Under writings

15,000 Shares

i'1

the

t*>y

400,000 Shares

and

member of the

recon¬

fS''

Ex¬

$2,000,000

are

Stock

manage¬

anything

above-average

after payment

period

Jan,

by Coggeshall & Hicks, {111
Broadway, New York City, mem¬

—-

$8,500,000

There

made;

was

rea¬

penalties

partner in the
firm. Mr. Pur-

Problem

and

the

when their

have caused

wonder

working together

much

express

Cannot

ferences.

grams.

nY\

security without;
unduly impeding industrial prog¬ bers of the New York
or
undesirably interfering change, that
with individual freedom.
In the Walter F.Pur-

competitive forces or
the game" in order to
try to bring more stability into
the system.
There is great doubt
"rules

industrial progress,

ress

with

ences

wage policies. which
compatible both with the 6on~
cepts of wage stabilization and

competi¬

Self-interest has led them to in¬
troduce various kinds of interfer¬

develop

satisfied

are

arise from good perform¬

number of should

improved under our competitive
system. Those who are called up¬

to offset such penalties cannot be

labor) try has been sfrujggling.

by organized

living have been steadily

standards in order

ance

really

ards of

cost.

Under col¬

which

If collective bargaining is

of democratic

the

a poor

proud

the

losses must con¬

penalties for doing

the United
private enter¬
prise system and under our kind

combination

neces¬

industry¬

economic

and

achieved

their individual initiative. Stand¬

that

That implies attention
to standards 1 throughout a com¬
petitive area and frequently on an
industry-wide basis if the impact
of competitive forces upon wages
is to be restrained.
Gearing col¬
lective bargaining to the needs of
full employment and maximum
production under the competitive
sytem, however,' means, that the
standards cannot result in unprof¬

nize

industrial
under

stabiliz¬

ing wages.

The

progress

part

fcveht, the highest standard of liv¬
ing ever attained and a -record of

responsibility

for laying the groundwork for in¬
dustrial peace. Theirs is the duty

not appear to be such an unavoid¬

able
VI.

estab¬

acquiescing in the idea

certain

com¬

government attests
to the
incomparable production
efficiency of men free to exercise

organizations have not
willing to face up to the
fact
that, under a competitive
economy, relatively large profits
must accompany
efficient plant

are

have

est.

possible genuinely to

accept collective bargaining with¬

finally

pleted.

States

Labor

these differences
competent observers

deep

that

tion

not

Strong?

Are unions too strong?

when reconversion is

of management and labor.
W$h£y
the primary"

have

1865

PHILADELPHIA

CHICAGO

tfr stfs-

««!
WSMM

a1'-/

Thursday, January 23,. 1947
458'

Speaks After the Turn of the Tear

Business and Finance
'

/'*

7«

.$V4

-•**•?*

'1' c t

(Continued from page 456)

$11$

-f

«* r,

A brief review of the" salient
business is enlightening
and will explain the position of the company today and
why we believe we will be in a salutary position by
factored

industry.

gas

the increase of our

factors

\ f, '
Throughout 1945 and 1946 there has been a sound and
continuing growth in demand for gas in all of our major
classifications of sales. Our gas sales in Brooklyn Union
territory for the year 1946 were 29,900,000,000 cubic feet
an increase of 6% over the previous year.
Our residen¬
tial sales increased 6% and commercial sales 12%. In¬
dustrial sales not only maintained their war-time vol¬
ume, but by the end of the year showed a 4% increase.
The revenues from sales during 1946 increased approxi¬
mately $1,500,000 or over 5%.
1
Of unusual significance is the postwar interest in the
purchase of new gas appliances. The sales of new ap¬
pliances through The Brooklyn Union Gas Compny
reached a new high with sales in 1946 totaling more
than four and a half million dollars. By far the most
spectacular factor in 1946 sales was the tremendous de¬
mand for gas space heating. Not only in the existing
market but also in the new home field, a strong pref¬
erence for gas heating was apparent.
In the Brooklyn
Union territory, for example, 90% of the new develop¬
ment type of homes specified gas heat. The demand for
gas space heating became so great in our area that on
Nov. 16, 194-3 the New York State Public Service Com¬
mission approved the company's; petition to restrict the
sale of gas for new space heating until April 1, 1947.
this year*; ^^n)y

the end

11 Gas appliances and equipment manufacturers attained
creditable levels of appliance production despite the
limiting factors in 1946. In 1947 new appliances incor¬
porating the results of innovations in utilization and
design will attract consumer interest. Research projects
in the domestic gas program include cooking, water
heating, space heating and summer air conditioning
studies.
The gas industry, through The American Gas
Association, has an ambitious program of research in all
fields from the manufacture of gas to its ultimate utiliza¬

tion.

for gas we

abreast of postwar demand

J To keep

1945 our first expansion
program which entailed an expenditure of more than
ten million dollars for new gas-making equipment and
for improvement and rehabilitation of old equipment.
|Our additional program calls for the expenditure of
about twelve million more.
During 1946 as a corollary
tp expansion, the financial position of the company was
considerably strengthened through its refinancing pro¬
gram.! To complete the projected program for 1947 and
initiated in Brooklyn Union in

1948 additional financing

V This

will be necessary.

development has been planned with the

bility that takes into consideration
time have
gas

territory.

We welcome the utilization of nat¬

ural gas if the company

is assured of an adequate sup¬

and its consumers.

J, We expect during this year to establish a new record
to consumers. At the beginning of this
the possible maximum peak demand on our pro¬

year

that

We anticipate

capacity is 193,000,000 cubic feet.

duction

by the end of the year it may be

215,000,000 cubic

25% increase in the maxi¬

feet.

This represents over a

mum

•

1946, holdings were in¬
an average of $500 per
family for a total of $18,000,000,000
of new ownership.
At the year's
end, 73,000,000 policyholders owned
life insurance valued at $174,000,ended.

creased

W. A. PATTERSON

for

reason

of their ability to serve
tremely bright. From the standpoint
produce big earnings during this
transition
period, the situation is
far less promising.
*
'
In this year the airlines expect to
realize many of the revolutionary
advances
which
they
have
been

optimism

this

generally favorable busi¬
a growing aware,
ness
of the
importance of group
T. I. Parkinson
insurance in stabilizing labor-man¬
agement relations.
That awareness
was boldly underlined during 1946 when group protec¬
tion climbed by more than $5,000,000,000 to approxi¬
mately $28,000,000,000 by the year's end. This group
based
ness

conditions and

trend

insurance

should

defined

even

1947.

possibilit^*^|i)l&Cj)res$ipn

begins, the
is a question that confronts every busiiteishiife My defi¬
nite opinion is that such a condition is not probable,indeed it is not possible at this time. However, the* han¬
dicap that faces all business is the carryover into the
new
year
of the suspicion and distrust that marked
labor-management relations in 1946.
year

new

which

'Rave

if rates and

will

Confidence on the

part of both producer and buyer carries a tremendous
weight in matters that appear superficially to be purely
within the realm of fact and figure economics.
It is quite

into such

possible for

to talk ourselves and others
temporary
activity and

lack of confidence as to cause a

setback in what otherwise would have been

prosperity. The setback, however, would be the result
cf a general frame of mind and not of an economic
trend.
A

supply four times that which was

money

with

in the

people in average years prior to the war
stay until the Government pays off sub¬

stantial amounts of

its bonds held by the commercial

banks, or until those banks sell off

substantial volumes

methods of reducing the present

inflated

money

The situation today does

tion

not represent

produce sounder financial results there must be im¬
proved efficiency of which there has been a showing of
progress in recent weeks. This will not be enough. In¬
creased mail rates or fares and possibly both are in¬

condition of

evitable.

The incidents of business activity and infla¬

visible all around us.

are

requirement of additional financing, but we welcome the

confidence in our

well for the Civil Aeronautics Board to
listen. The Board should review the ex¬
pansion which it has encouraged in the past and after
careful deliberation deeide whether or not a new ap¬
proach should be made to the future. One of "the major
responsibilities of the Board is to build a sound econom¬
ical air transportation system.
^
.*
It will also be

Both to enjoy the fruits

stop look and

of inflation we need

to face the dangers

representatives in government, in pur

representatives in labor and in management.
There is much

C. G. PARKER

that

President, Kimberly-Clark Corporation

more reason

for worry in the possibility

bankers and fiscal authorities will fail

our

to turn

Certainly no year can be as difficult for the airline®
the one just passed. With all too few airplanes and.

their attention to the control of inflationary forces which

Overall production at Kimberly-Clark is currently at
its highest level in corporation history, and we antici¬

pate maintenance
'

of that level in 1947, with perhaps
additional and moderate increase

segments of our expansion and mod¬
ernization program are completed.
All of our major products should be
in somewhat better supply.

all
cultural
as utili¬
tarian;; papers,
continues
beyond
manufacturing resources and so far
as our own current approach is con¬
cerned, Kimberly-Clark is planning
for future operational output on a
considerably* higher level-rMth an
expanded production for pulp, paper
and- cellulose wadding which will
finally mean at least 25% increase
Demand

for

bookpaper
papers), as well

above

'i j

C. G. Parker

immediate

Expansion
grams are

(and

postwar output.
modernization prounder way at #11 of our

high production in 1947,

'Will add also

so that—in addi¬
mentioned^-this year

Operations indicate a settling-down of personnel. Most

gtetifymg^has.fmeit.th0. turpoyec Jatcs of

part of strike-gloomy businessmen
a

setback.

the degree of, $165 billions.

pur

returned

■

That is accomplished

Our $aper money is ho

convertible

airlines

into

paper

money;

The purchasing

proximteinsVmore^ase^rs than

m,r

power of our

escape

jtorfwg •to

•

dollar, even in thp "P!"- future, depends on
the near
factors hard or impossible to predict. Whether we suffer
™wpr

approximately .57% .more express
ing 43% more

the ruinous consequences of-4his inflated and

When

we.no

depends

think

We buy them not because we want
we may

need them in the future.

them because we don't want to keep* the

is the

more miles

the'future

flight from money
'

Despite the dangers to business in 1947

total

them

We buy

money."''That

which:'f^t^nfldtioi^;^te: high
•
" jf

flow, fromlack of confidence im

v -.

<•';-v.\.,

aurtegthepealt

daily than they did

cotoitmeht^^

We buy equities in land or stocks or we buy

commodities.
now or

avoid further

flying approximatefed60%r.

Today, U. B. ^airlines' are

what happens to-bur money.

longer have confidence in

due
value of money we
money.

in 1945, moving
and freight, and fly¬

airplane miles. /.

paper currency

They

airline patrons but the
situdtrbn and definitely

.legitimate criticism from'
were cognizant of the

was

longer convertible into gold and our!bank deposits are
only

faced

and personnel as rapidly as possible but
they could not keep pace with the demand. Neither
could they provide the! high standards of ground service
to which the'air traveling public was accustomed. There
added planes

that business is due

;

We have inflated our currency.

gear.

to corporate growth.

experienced personnel to handle the job, they were
with a tremendous demand for air transportation.

than there is in the widely

and

irjills in the United States and Canada
tion to

have developed and

for

W. A. Patterson

supply

quite possible but neither is probable.

im¬

of the

many

make money.

could help

Either of these

non-banking investors.

of such bonds to

out

fa¬
cilities to keep pace with the increased accommodations
aloft are under way all along the nation's air routes.
Such things as pressurized cabins on the new postwar
planes, new and ingenious electronic devices aloft and
on the ground, improved operating procedures and heat
anti-icing all promise further progress toward complete
schedule regularity along with comparable advance¬
ments in safety. It has not been possible to place these
devices in regular use just overnight; thorough research
and development, testing and personnel training must
precede the adoption of any new aid to flying.
The airline earnings picture is beclouded by a number
of factors. First of all, much airline financing is needed
to pay the costs of postwar expansion. Secondly, oper¬
ating costs have been steadily rising, producing de¬
creased net profits despite record gains in operating rev¬
enues. Third, with the increased size of airplane fleets
and with a return to normal travel and shipping condi¬
tions, airline load factors have been going down. White
this is beneficial from the standpoint of accommodating
the public, it obviously means less revenue per airplane
mile and is in contrast to the capacity of operations car¬
ried on by the airlines during the war when they scarcely

ruin if labor's demands are
prices are not increased, a bewildered

his expansion plans.

scrap

ironed

Large-scale expansion of ground

public will not use its present large buying power with
confidence or enthusiasm. If a manufacturer envisions
continuous labor difficulties and a tightening market,
he

to provide

them

postwar "bottlenecks" which
hampered them in common
with
most
other business
and industry.

broadcast the possibility of
or

enable

will

mediate

exhorbitant

met

faster; finer, more efficient service
than ever before. Meanwhile, they

labor, for bargaining purposes, continues to make
demands and if management continues to

of their ability to

promising
the
air
traveling and
shipping public and which, unhap¬
pily, they have been unable to de¬
liver up until this time. Already they
are taking delivery on new aircraft

sharply

As the

domestic airlines in 1947, from the
the public, is ex¬

The outlook for the

standpoint

1947.
The

President, United Air Lines

for the
expects to top that mark in

year and

high prices causes confusion and
insurance should not be affected detri¬
mentally. The huge supply of money in the hands of
the people of this country will remain undiminished and
possibly increased. The people may hesitate to make
use of it for ordinary purchases or investments but they
have confidence in life insurance and they will continue
to use the money in their hands to buy annuities for
their own retirement and life insurance for their own
and their dependents' security. The only phase of the
life insurance business which will be troubled by such,
life

developments will be investment of the large inflow
funds in quality securities at the necessary yields.

sales

insurance

life

group

of boom and

;

000,000, the highest total in the na¬
tion's history.
The Equitable Life
Assurance Society passed the billion
dollar mark in new ordinary and

development and expansion program with the collateral
challenge of satisfying increasing business demand.

American people for

security of life insurance protection was demon¬
strated in record-breaking fashion during the year just

the

depression.

j Our most vital task for 1947 is the prosecution of the

Society

of the United States

The deeply-rooted desire of the

the other hand; if buyers' resistance to presently

available materials or

THOMAS I. PARKINSON

peak day demand for gas since the beginning of

1946.

If, during the early months of the year, business
generally absorbs the worries with' which 194*3 closed,
life insurance will share in the general business activity.
year.

recession,

President, The Equitable Life Assurance

hands of the

for sales of gas

increased sales of our protective services during the new

ployees. This should be a stabilizing factor in 1947 and
gives some additional reason to hope for1 a rise in
productivity.

for the

ply and if the economic factors make it best
company

flexi¬

we may some

combination of natural and manufactured

our

that

rate

business look forward with enthusiasm to

life insurance

the exception of one month, turnover
holding steady at approximately 1% which is
far better han turnover in any other classification of em¬

veterans, i With

miles. Planes in service on U. S*
international airlines total 816—and ap¬

than 175,000

and

order,
be overly impressed with
^the iirlih^r picture fight, at > this^teoment~-but airline
patrons aS' weil as Airline operators can be. assured, that

which would.

teeflitura

domestic

/wet in^ the ^

proximately 175 more planes are on
f

Tfli^investihg public

1947 will bring*
and.

may ; not

signtficant^

efficiency*,

;

(Continued on page
•*

*»•»«

«i*

•

« ■»

•«*

;'
460)
•#

■*«*-"*

459*

Nurnber 4562

^aliUme 165

duringthe fpuryeara Jp question, ^jterjing area and.thefefrps pf set-Element made with her are most;
theBr^
i
1
'•"BM" later asked: ''Suppose* Ar-* unlikely!1 to set a precedent fo^

The British ViolationGlfte Loan Agreement
otherwise

would

than

(Continued fro mpage 395)

buy.

India, Egypt and other countries Given that interpretation, the pro¬
vision becomes: obnoxious to somp
hs a result of goods and .s^rvieesAmerican export interests.
Per¬
and

war

British

the

supplied

which,

during

because

the

haps for-this reason Rep. Howard
B.uffett of Nebraska a few days

the

too,

tion.

-•

)

chronic American afflic¬ gentina shifts purchases not only settlement with countries within
• to England but to
other members the sterling ar*u
of

•

::'V

•'

* vf

.....

Lest it .foe assumed that alt the
criticism of the Anglo-Argentine

the sterling bloc and thus man¬
to create an unfavorable* bal¬

ages
ance

of trade and

chance to. cash

(b). Eaph. large sterling balance

dijttets frptij. the others .in charac-?;

in on that frozen sterling?"
To jter^ according to the way it grew; ^
referred $p the matter in, a 'pact sterna from business circles, this the British reply that this ]tlje;yyay in whjuch it has. been held;* •
max be? xepaffcecb ibaVasds*1# ipossibiftfcy is equally remote*. Ear
convertible into other currencies. floor speech, in which he disclosed!
its. siz§., ft- would.be quite
that he is seeking to obtain the ago, as last October^the newspaper fnstan]o%; In 1045 - of Argentine ex4
Those balances, however,
have
impossible to, settle for all. sterling
texts of the letters exchanged by "PM" raised some questions about penditure in the whole sterling
been available for the purchase
the agreement. The points made area only about 18% was in coun¬ [balances in, a uniform. manner>;
of British goods and services when Secretary of the Treasury, Snyder
The type Each, of the main sterling balances .
and Chancellor of the Exchequer by "PM" correspondent and the tries other than UK.

system of British ex¬
change* control, have not been
necessary

ago,

jandv

obtainable.

Dalton.

One of the American, conditions

Rep. Emanuel Celler's speech of
Britain was
Kingdom solve the. the same-,djay: on this subject is
doubtless motivated more by Pa¬
problem of the "blocked sterling"
debt, Three methods of disposing lestine than by trade considera¬
of granting the loan to

that the United

tions.

of this debt were envisaged: can¬
cellation of part, funding of part,
and freeing of part for conversion
into other currencies, such as the
dollar.

•

be noted in passing that
is not the only feature

It may

(6)

(B)

of the

of; products supplied* by- sterling-, wil.l haye to.be dealt with on its
area, countries) apart from UK« are
merits* and in -the light of local
not of- the kind required on -a
:and. other' conditions particularly
The "BM" article iipplied; but
larg.e spqje by the Argentine,, and
did not specificallystate,that tlje there is not the slightest possibil¬ affecting it.
^ v
v* 'r
;;*:•/> #":>*:•Ov V'.y
text Qf the Anglo-Argentine agree¬ ity of the Argentine expanding
ment was being suppressed in this her
imports from the rest of the
country. This implication is erro¬ sterling area to the extent of con¬
neous. The full text of the agree¬
verting her favorable, balance, with
ment was made public almost im¬ the UK into, a
deficit, the British
mediately after signature.
say.
official

•.

Anglo-Argentine agreement
viewed critically

which has been

British

thereto

reaction

be summarized: as follows;

may

John B. Huhn Joins

Staff of Bache & Co.

"PM's"
correspondent
stated:
Bache
Co»,
Wall Street,
Government, an¬
"PM"
also
asked:
"Suppose
other
being
the
meat clauses;; "Section (B) (6) of the (Anglo- this provision sets a precedent for New York City, members of the
Argentine) agreement . . . pro-, future sterling bloc agreements,
Whether there has been any ex¬
'New- York Stock Exchange, anivides that 'if in any year the bal¬
change of correspondence between
thus undercutting one of the main
inonnce that John, l^elf Huhn, for¬
simple solution of the Argentine Washington and London on those ance of payments within the ster¬
blocked sterling. As to the latter, clauses is not known.
But Mr. ling. area were unfavourable to purposes of the Anglo-U. S. loan merly Commander, U. S. Navy,
it authorizes the use of part to Snyder has made it clear to the
agreement?"
;and previously partner,. ?ost &
repatriate outstanding Argentine press that the Administration be¬ more dispose freely within the
The British official view is that: iFlagg, is now associated with the
sterling debt, to repatriate British lieves an agreement is an agree¬ said area of its sterling balances
(a) The Argentine is outside the firm in its main;-office.:
investments in Argentina, and to ment and should be kept to the for an amount equivalent to the
transfer
£ 10,000,000
to Brazil. letter. Mr. Dalton's admission that deficit'."
The rest is in effect funded, being the loan agreement has been tech¬
The British view is that any
made subject to interest at Vz% nically violated doubtless means discrepancy between the Angloper annum, and from this remain¬ that the violation, however techni¬ Argentine
agreement
and
the
der
£20.000,000 is to be made cal, will not soon be repeated.
Anglo-U. S. agreement is aca¬
available to Argentina over a
demic. Current earnings and the
four-year
period
for
current Is the Loan Condition Unreason¬ instalments of £5 million which

Argentine pact, which is
complicated because it deals with
meat, railways and. the negotiation
of a new trade treaty, is not a
The

in the American

transactions anywhere.

able?

(B) (6), it is said, was
the insistence of Ar¬

Clause

inserted

gentina, whose negotiators feared
that Britain might not continue to
the volume of its pur¬

maintain

scale
Argentina's

chases from Argentina on a

with

commensurate

purchases from Britain.
to this
son

According

interpretation of the rea¬

for

(B) (6), Argentina

would
bal-

be free to pay for the

then

ance-of-payments

out

difference

Where

"technical violation" of

agreement

loan

American

the

arises, then, is in connection

with

that

US-UK loan provision mak¬

ing

freely

currency

convertible into

as may

bilateral

part

sterling.

the

ican insistence on full

American

Some

clause

Anglor

the

(6)

(B)

critics

Argentine agreement are also crit¬
ics

any

of the

gram

agreements pro¬

trade

and the. additional tariff re¬

ductions

under consideration

now

by the Committee on

will be

Underwriters—Distributors

agree¬

fully available for

Members

New Yo^k Cork Exchange;

Philadelphia Stock Exchange

Chicago Slock Exchange

Chicago Board oJF Trade

Commodity Exchange, Inc.

Reciprocity

covers

there

because

pos¬

120 Broadway

sibility of the Argentine having
a

deficit with the UK.

cannot

therefore

have

NEW YORK CITY

It cannot

affect Argentine import policy
any

and
BRANCH

dis¬

criminatory effect; for there is no

Philadelphia, Pa.
Scranton,

additional release of balances un¬
til and unless

The Sherry- N etherland

Empire State Building

East

OFFICES

Pottsville,

Pa.

Orange, N. J.

deficit in the ster¬

York,

Pa,

Morristown,

Syracuse,

Lancaster,

Pa.

Allentown,

Pa.

Bridgeton, N.

has arisen, and in prac¬

ling

area

tice

there

prospect of this

position of demanding at one

the

(6),

and the same time that the

blocked

New York Stock Exchange

These critics are in

Information.

British

convert blocked sterling into dol¬

sterling would be freed only for
use

Argentine balances in ques¬

the

convertibil¬

blocked sterling such

of old

tion.

under¬

Under (B)

Argentine

ment

Anglo-Argentine

to the reasonableness

standing with the owners of the
blocked

could not

the

attempt to make blocked current transactions everywhere,
sterling convertible without sub¬ it is stated. The additional right
stantial
aid
from
the
United
which enables the Argentine to
States, and since the loan—gen¬
erous
though it was—is perhaps use its balances further to. meet
not commensurate with the mag¬ deficits with the sterling area is
nitude
of the
sterling problem described as
purely hypothetical
today, a question may be raised
in the four years which this point
of Amer¬

be freed as a re¬

'British

sult

last

Reynolds dfcCo,

to be definitely released un¬

der

even

such parts of the blocked

sterling

clear

made

was

that the British

year

ity

of its old sterling balances.

Since

are

lars for

within the sterling area.

expenditure here by Ar¬

gentina and other owners of ster¬
Another
From
course,
may
an

buy

Interpretation

another

ling, and that the United Kingdom

the language

of (B)

send less goods

viewpoint,

market

(6)

and

into the American

hence acquire fewer

be regarded as holding forth dollars with which to redeem the
It is a case of
to Argentina to blocked sterling.

R A I L R OA

inducement
more

from the sterling area wanting to have

our

?i\t$

cake and eat

BONDS & STOCKS

APLEft, Coleman & Co.
Members New York Stock Exchange
York Curb Exchange

Members New

15 Broad Street,.

New York 5

HAnover 2-9780

McGINNIS,

BAMPT0N « SELLGER

Mejftb&s New Yvrk Stock Exchange.

Trading Department

NEW YORK

61 BROADWAY

6, H, Y.
-*<•

Tel Digby 4-4933-

—r-—'j-':-:;
;

j,\<

■

■H'

i
\ 1.

im11»*»

'.:v,

i.,

Bell

System Teletype NY 1-310

0
.y

,THITCtoMMEfc<nA

460

Business and Finance
%•>"

/ >
I. S. V. PATCEVITCH
. ■
President,. The Conde Nast Publications Inc.

194$ has been an putstanding year; for the magazine
industry. Both circulation and advertising
for most publications have reached new peaks in an
upward trend which started, in;1943.' 4*;"
y
,
publishing

An ever

slowing down of sales caused many people to wonder
what is ahead for 1947 and several things should be

greater proportion of adver¬

tising expenditures is being made
through the medium of magazines
and
the
advertising revenues of
inagazine publishers in 1946 Will
show

increase

tween 20

1945

over

■■

one

increases

levels,

turn

downward

depends

developments in the fields of
management-labor relationships, in¬
ternational affairs, increased produc¬
I. S. V. Patcevitch
tion of all types of goods, and avail.ability of essential materials, — de¬
velopments which cannot be forecast without considerupon

g able hazard.

Assuming a reasonable solution to these major prob¬
lems, 1947 may be faced optimistically by the periodical

| field. The war .years have introduced
^ vertisers to the value of magazines as

many

new

ad-

effective ad¬

vertising medium and have gathered many new readers
who are finding in magazines those elements of service,
information or entertainment which obviously appeal to
& them. While there may be some recession from the
present high levels, it is reasonable to assume that much
of this expanded interest will be retained and that
i y magazines will continue to enjoy volumes considerably
larger than pre-war levels.
;|1 Advertising in 1947 should also be stimulated by the
return of a competitive situation. As consumer demands
are met by a higher rate of production, or react unfavor¬
ably to high prices, the need to actively promote one's
products and sell in the face of real competition becomes
more urgent and should be a strong factor in inducing
i advertisers to maintain or expand their
programs. Furi ther, the advertising volume anticipated from manufacjturers of durable goods and from such major industries
'

•

construction

has

not

materialized

and

advertising
4; prospects for 1947 may well be bolstered by additional
activity from these sources. •
The prospect for continued high circulation remains
1 good. As a result of paper shortages and a consequent
f inability to produce sufficient copies to meet the de•

j mand, the actual ceilings which the favorable circula¬
tion

trend might have reached have never been ac¬
curately, measured. There exists, therefore, a substantial
potential audience to replace any decline of current
| readers, a condition which should enable those periodiicals which maintain their editorial standards to retain

for increase their current levels. While some magazines
I apparently have already reached their circulation peaks,
.

;

there

are

still

many

which

are

substantially

under-

J distributed.
The

Airplanes, on the other hand, are not yet so

considered, and sales to a great extent will depend upon
the general business condition of the country. The per¬
sonal airplane industry will be one of the first to be
affected by a depression and will boom when business
is good.
v
.,•>
v
Forty-three years ago there was not an airport in the
United States and now we only have 4,000 or one for
....

.....

favorably during 1947, maintain 1946

they will continue to be in big

confident that

demand.

be¬

high level and circulation
during 1946 are running
about 10% ahead of 1945.
;
Whether these trends will continue

too, is at

trying to answer that question.
Automobiles have become such a necessity that every¬

studied before

25%. Reader interest

and

Speaks After the Turn of the Year

always been a decrease in sales for a few months in
the winter, but as soon as spring approaches, activity
at airports increases and buying is resumed.
I believe
this season of slow-down is largely responsible for the
present condition.
Many estimates have been made of the demand for
personal planes over the next few years. They have
varied from a few thousand to 100,000 per year and this

(Continued from page 458)

;

Thursday,' January 23; 194^

every 750 square miles. All large cities have one large
airport but they all need several conveniently located
small ones for the personal planes. Thousands of small
towns have no landing facilities.
Since the real utility

private plane is making trips where other forms
transportation are lacking or poor, the utility of

planes will be greatly increased when more fields are
built. The government passed an airport bill by which
the United States will furnish 50% of the money used
for construction of airports.

The large cities are trying

of this money increased, but the
not accepted this offer too enthus¬
iastically. However, when one builds an airport, addi¬
tional prssure is put on neighboring towns to build one,
also. This will undoubtedly cause the building of large
numbers of new fields, each of which add to the useful¬
ness and safety of planes, and each new field naturally
furnishes a sale for one or more planes.
to

their

get

smaller places have

greatest obstacles to the increase in the
planes is a serious lack of hangars. More
than half of the planes in this country are tied out in
the weather and most people do not wish to pay $2,000
of the

One

number

plane and not have it properly housed. At
present hangar rents, it is difficult to find any invest¬
ment that will give as large a return for the money as
individual hangars.
Another thing on the brighter side is the fact that

trained and millions of soldiers saw how use¬

were

uncertainty,

lack

fields

and

hangars, together with the fact that most people have
yet organized their lives so that an airplane is a
necessity, many estimates of output seem entirely too
optimistic. New fields are being built and people are
learning how to use them to advantage. Being made in
not

comparatively small numbers, the first cost of a plane is
high, but its life is so long that the first cost per mile
is below that of an automobile. Flying is such a fine
to travel that it will undoubtedly have a healthy
growth and the light airplane industry should have less*
material shortages and have a volume of sales about

way

paper

has been the most serious probyears.

which
more

There are entirely too many things over
have little or no control to make any estimate

than

a far more difficult task.. Since the end of the
Pacific war, magazine publishing, in common with all

f be

industry, has been confronted with sharply rising labor

I and material costs. This trend of higher costs

may

| expected to continue through 1947 and, unless recoupl nxent is made through larger volume or increased rates,
4 will inevitably result in lower profit margins.

W. T. PIPER
President, Piper Aircraft Corporation

§; The light plane industry has just completed the
| largest year in its history. More personal airplanes have
been made in

entire
made

prewar year, and in the

year 50% more planes were
than the total number of li¬

censed

planes in the United States
at the end of 1941. No planes had
been made for the commercial

ket

mar¬

for

nearly four years and the
demand was so great that
customers were literally waiting at
pent

the end of the production line.

production increased and the more
urgent needs were filled, the demand
slackened v and
manufacturers

optimist, I

by f October
having

were

some

diffi¬

few

were

free from

Much has been said about large
banking earnings—the size of which

has been greatly exaggerated.
It is
true that recoveries of losses have caused the return of

capital charged off during the depression, but this
cannot be classed as earnings.
Earnings, from banking
have not been as large as they should have been in
order to allow proper increase in capitalization, so neces¬
sary to insure the safety of depositors and reasonable
some

dividends to stockholders.
;

broad sense, banking is a stable business and runs

nearly the

Fluctuations

same

level of earnings

profit

loss

year after year.
securities and loans

vary, of course, as business conditions change.
Competi¬
tion irom loan agencies other than banks isvnQW(very£

great, and loans of a kind never before sought from
culty. in selling their planes and
banks are how requested.
their organizations had all the planes
These present problems that
deserve serious consideration.
<;
they could afford to stock.
This
4 •
forced
several
companiest to stop
Labor; and capital hre so closely interlocked! that
4 production, others to curtail and only F neither can operate without the other.
Each should be
able to continue at full speed. There has
liberal1 with the other and greed, ruthlessness and dis-

the

think¬

devastating controversy of self-centered

factions.

;

Strikes

during 1946 did cause a considerable loss of
buying power.
Nevertheless, the year has been a suc¬
cessful

one

for

our

merchants and manufacturers.

Their

is reflected in the

success

healthy growth and the sound
condition of the banks in our locality.
While 1947 now
appears to present many problems; our banks look with
hopefulness to the future and anticipate a reasonably
good year.

W. Y. PREYER
President, Vick
Since

Chemical

Company

has become pretty well diversified^
it's hard to make any general statement that applies to>
these diverse types of business—so I think it best that
,.;vI first say that in our overall picture
we look for a bigger year than
last„
for our fiscal year which ends June
30, 1947.
This applies to both sales
and profits.
In looking ahead for the next 12
to 18 months, I think it best that I
speak of our old original products
in the proprietary field as there will
be many others occupying more im¬
portant places in the other fields
whose reports you will have.
Therefore, we look forward to a
our

company

continuation of
sales.

our

This will

upward trend in

brought about,
believe, by a substantial increase
rate, the large crop of
new babies, and to the
high level of
purchasing power among the great
we

in the birth
W. Y. Preyer

masses

of people.

While

great strides have been made in

eliminating

the dangers of pneumonia, mastoiditis and some of these
serious aftermaths of colds, yet nothing has been found

definitely

cure a

cold,

in all

nor,

cases,

to prevent it.

Our clinical records show that if taken in time may small
can be prevented from developing, and we can
give

colds

much relief and help shorten the duration of a cold—
and this is the place where nearly everybody becomes a

prospective customer.
We also find that in times of business recession
not affected

much

we are

other types of business.

We have not advanced

our

prices but have relied upon

larger production to absorb part of our increased cost.
Therefore, people can still buy our old Vick products at
prices of some 15 years ago, like many people in our
field1, we will try very hard not to raise prices.
It is
see

our

belief that both management and labor will

the wisdom of

settling their differences without long
strikes, and if this can be done I think we
all look forward to a very satisfactory New Year.

President, Westinghouse Electric Corporation

trying to look forward to 1947

high nopes, but I cannot fail to observe certain
signs that spell caution. Defiance of Court orders; pdrtal
to
portal suits; demands for1*1 in¬
creased
pay
for labor; insistence
upon shorter hours and less
all these things, and others,'tfisfdpt
the smooth flow of business, which
is so necessary for a successful year.
On the other side of the picture,
we
have
potential buying power
awaiting essentials which can be sold
if labor produces.
Should everyone
put his hand to the wheel, we will
have plenty of work for everyone
and good earnings.
Business cannot
offer employment, supply merchan¬
dise, and operate successfully with¬
out the cooperation of labor.
H. Pond

years, as well as

leaders, and again substitute clear

GWILYM A. PRICE

witn

Harry

"crack-pot" ideas

ing and hard work, our return to sound principles of
true democracy will be assured and our future will

Chairman, The Plainfield Trust Company

radical labor

can

two months period than were produced

in the best

can

HARRY H. POND

accept all business offered to them. Paper production

I has substantially increased during 1946 but is still be¬
llow the demand and paper will probably continue to be
fin short supply during 1947. However, improved methods
f and expanded facilities should produce larger quantities
| during the coming year and close the gap between de4 xnand and supply in many types of paper.
'4
While the maintenance of a high business volume is
promising, the maintenance of current profit levels will

and costly

guess.

attained in spite of the inability of publishers to

satisfac¬

longer be the land of the
banking.

rid ourselves of the many
that have been thrust upon us in past
If

ful flying could be.
With the business

{The record advertising and circulation volumes have

restrictions this country will no
As business goes, so goes

ics

both sides before

free.

and up for a

industry has had the advertising that aviation re¬
ceived during the war. Thousands of pilots and mechan¬

tory solution of labor trouble can be reached. The prob¬
lem is by no means one-sided but
apparently the pendu¬
lum has swung to far in favor of labor and unless the
employer and the employed are placed under the same

equal to 1946.

shortage of

! lem affecting the magazine field over the past few
been

trust must be eliminated

All of

at Westinghouse are proud of the company's

1946 achievements in

engineering and scientific research.
it was founded by George Westinghouse,
the growth and progress of this
company have been closely tied to
its
success
in
solving
technical
problems.
Such technical advances are grati¬
fying proof of our ability to improve
the comfort and physical welfare of
the nation.
But, essential as they
are to our progress, they do not help
us solve one of the gravest problems
in today's world.
That is the prob¬
lem
of
getting
along
with one;
Since the day

another.

Our hopes for a better

world and

happier nation depend upon our
recognition of the interdependence of
a

nations

and

individual

men.

American labor and management to¬

day have
two

courses

Gwilym

clear-cut choice between
of action.

union-minded

A. Price
>

One calls for class struggle with

and

fighting against those
who are company-minded.
The other calls for indus¬
trial peace based upon the cooperation of men and
women who are neither company-minded
nor unionmen

women

minded, but instead are together-minded.
This really
is the only course of action we can take if we are to
avoid disaster.

Fortunately for us, none of us individually has to solve
the problems of getting along with Russia, straightening
out China, or keeping the peace in Europe and Asia.
Our job is much simpler than that.
Each of us has the
job of living peacefully and productively with his neigh¬
bors—the job of making interdependence a success in his
own individual circle.:
Surely we can learn how to do
that; how to get along with men and women of our own
kind, who speak the same language, have the same birth-

^,-4(ppntihued)onpagdy462)

;

,W;i U'Xt r&w

;;

••

^Volume 165

f :■*>"¥

;vv>.; *•

Number 4S62

'.■ „«.

•

v*'*

»,

' y:0^'

''1

y „*tV

4^i|®

(Continued from page 390)
preferential borrowing rate of V2
of about $25 billions in
December, of 1%, the pressure on banks to

1945, and subsequently these war
deposits have declined to less

than $3 billions which reflect re¬
duction in theGovernment's

liquidate loans made against Gov¬
ernment securities, and the sale
of about $y2 billion of the Govern¬
ment security holdings of the Na¬

working balance

tional Insurance fund in the open

mate

minimum. From

resources

approxi¬

standpoint,

overall

and

market,

all combined to bring
about the decline that took place

this

perhaps is the most striking com¬
parison, the banking system be¬

war with
something less
$80 billions. At the peak this
.figure had increased by $100 bil¬
lions to $180 billions and subse¬
quently it is estimated to have de-

approximately

when bank

effect

$160

Increase in Liquid Assets

fore

With

the increase in the
debt,
liquid assets in the economy, as
represented by demand, time and
savings deposits, holdings of Gov¬

removes

control of the volume of

have

the

much

place in the

natural

lions

peak of

1946

little

and

moderately.
These figures
purpose of

nitude

since

for

have

the

seven

with

and

years

provide

background for the dis¬

cussion of the future.

lic debt by six times the amount

outstanding

before
accomplished at a

the

war

was

declining jna clear demonstration
effectiveness of Federal

terestfate is
of

the

Reserve

and

debt

was

little

over

clined to

year

little less than
2%, and
present the cost is very slightly
excess of 2%. The
slight rise
that has taken place since last
a

February

The

also

slow

have

suggested,

debt

to a disproHPortionate and unhealthy per¬
centage of the total. Until debt
retirement at a much more rapid
rate

than

has been indicated by
budget can be effected,
this refunding policy prohibits a
proper maturity distribution for
the debt. Over the next five years

the

new

some
$77 billion of government
marketable issues, become due or

callable.

Of this amount

$30 bil¬
represented by certifi¬
cates and the balance of $47 bil¬
lion
by
other
issues .carrying
coupons ranging
from 1^4% to
41/4%.
lion

are

should

directed

pri¬

eral

welfare
see

present

the

economy,

I
at

compelling reason
for the monetary man¬
no

Secretary Snyder frequently has
that government securities

periods of

policy been im¬
wholly effective in

be made by re¬
of the certificates or
,

other issues

as they mature with
security of longer maturity, and
beyond that to spread maturities
on
refundings in the maturity
category most suited to the needs
a

of the market at the time.

This is not to suggest that the
Treasury necessarily refund with,
long term bonds. Perhaps at the
outset an 18-months or two-year
note would serve the purpose.
What I am suggesting is that the
time has arrived
to unfix the
short rates which are meaning¬
less and to restore to the -? Federal
Reserve Board the power to con¬

yolume of credit in the
system.- The principal
have been raised
to this program is that the cost
of carrying the debt would be in¬
creased and that the endre level
of the government bond market

trol the

banking

objections that

would

Refunding Into Longer Maturities

could

some

disturbed.; These con¬

clusions do not necessarily follow.

Admittedly,

unfreezing

future.

should

tailored

needs of investors.

the

meet

A step

(Continued on page 463)

in this

voluntarily to embark upon
policy of bringing about a ma¬
terially higher level of interest

agers
a

rates
for
government securities
than that which exists today. Con¬

versely,

materially

lower

in¬

terest rate pattern certainly can¬
not be proven to be in the public
interest.

suggest,

What

would

however,

that

HUTTON & CO.

W. E.

ESTABLISHED 1886

some
MEMBERS

tors,

including the

banking

New

York

Stock

Cincinnati
Baltimore Stock

Chicago

Stock

New

Exchange
Stock

Philadelphia Stock Exchange

Exchange

Chicago Board

Exchange

UNDERWRITERS

York Curb Exchange

Exchange

•

Trade

DEALERS

BROKERS

sys¬

tem.
>

In addition

give serious

thought to the removal of the
buying rate on certificates

Philadelphia,

Baltimore,

Pa.

Lexington, Ky.

Ohio

Dayton,

CINCINNATI

YORK

NEW

to unpegging bills,

the time has come to

Boston,

Md.
Easton, Pa.

of indebtedness.

this

Continued main¬
rate

has

two

se¬

(1) it effectively

policy of the late 20s had lit¬
immediate effect in curtailing

need

op¬

approach, that of an easy
policy, certainly did little

stimulate

30's.

economy

these

the

controls

used
in conjunction
factors, which will be
later, it should be em¬
phasized here that a great deal of
experience in money management
with

the

While

other

has

been

gained

Underwriters and Distributors

in recent years,

and that the powers and resources

hold¬

available to the Treasury and the

wartime

Federal

Reserve

banks

today

are

State, Municipal and Corporate
REORGANIZATION S "WHEN-ISSUED"
Securities

SECURITIES
•

RIGHTS & SCRIP
General Unlisted Bonds and Stocks

OTIS

Josephthal & Co.

CO.

(Incorporated)

•

••••;!:>

New

v-v

members

York Stock'Exchange

Chicago Board of Trade

ESTABLISHED

CLEVELAND

Bell System Teletype NY 1*319-

Direct

•

19 Congress

Telephone

mimm

St., Boston 9, Mass. *

Boston

and

Private

Wirt

•CINCINNATI,

Syitem
>v.

DENVER

CHICAGO

NEW YORK
•

1899

•New York Curb Exchange
Commodity Exchange, Inc.

120 Broadway, New York 5, N. Y.
REctor 2*5000

TOLEDO

COLUMBUS

Mass...

Portland, Me.

fixed

they will be
high interest

The

flex¬
could cause

short rate and adoption of a
ible refunding policy

to expect that

the

Jof the

stated

discussed

securities,

the

tenance

early

Government

elimination

If,

built

management and Federal Reserve

rious drawbacks:

posite

that had taken place in the
Victory
Loan Drive the preceding Decem¬
ber.
Retirement
of
commercial

ings

curb

speculation in securities. The

policies.

Reserve

that additional powers are in the

Federal Reserve

money

Federal

inflationary trends in

and

active business. In neither of these
cases have debt management and

and Federal

was

business during peri¬

ods of recession

direct result

banking system

panding them until such time as
it
can
be
clearly demonstrated

would

direction

funding

rate

grasp the significance of the
debt repayment that began last
March
from
the
overborrowing

the

stimulus to

tle

bank

purpose of influencing the
general level of the economy; as a

was

forces.

the
the

already noted the effective¬

management

debt

un¬

flexibility is desirable, and in this
view I am wholeheartedly in sym¬
pathy with the remarks that Mr.
Sproul made in his address before
ess
which has been engaged in
the New Jersey bankers.
To be
from March of last year to the
specific, the fixed rate of % of 1 %
present.
on Treasury bills and the put and
Debt management and the Fed¬ take
privilege attaching to bills
eral
Reserve policy cannot and no longer serve a useful purpose.
should not be directed
Of the $17 billion of bills out¬
solely to¬
ward the maintenance of interest standing, $15 billion are held by
rates at any specific level.
Rather, the Federal Reserve Banks and
they should be used for the pri¬ only $2 billion by all other inves¬

Reserve

fail

categories;

constituting
force; and (2)

economic

reason

it had de¬

influ¬

These

the past. Taken alone there is

2V2%; at the end

February last

wise to consider extending or ex¬

mediately

management

policies. In June, 1939 the annual
interest rate on the public debt
of

come

mary

-"v That the expansion of the pub¬
*

that it would

policy on
borrowing rates during the war
and of the slight
tightening proc¬

that have taken

past

and

policy of refunding maturing is¬
sues solely into certificates of in¬
debtedness, the floating debt soon

of the easy money

ness

emphasizing the mag¬
financial changes
place during the

rates.

policy,

potent

declined

cited

are

In seeking the
likely to hap¬

(1) debt management and Federal

$29 billions

over

has

taken

of the factors

interest

Reserve

$8 bil¬
rose

has

into two broad general

circula¬

December, 1939,

past.

examination

currency from $5 billions to
almost $25 billions. As
you know,

what

in the future,

and

than

for

solution to what is

encing

less

quate

can

period demand deposits
in this category increased from
less than $12 billions to
$38 bil¬
lions; time deposits from less than
.$28 billions to almost $75 billions,

was

Factors Influencing Interest Rates

same

tion, which

drive

In theory, I think we are all
opposed to all controls. On the
other hand, those controls now ■
lodged with the monetary author¬
ities, in my opinion, are justified
on
the basis of the necessity to
deal properly with tjie compli¬
cated machinery of today's econ¬
omy. At the same time I have an
even stronger conviction that the
present controls are Entirely ade¬

policies

the

bond

war

eliminated.

pen

currency

last

public interest.

ernment securities from the end
of 1939 to the end of 1945.
During

were rising, their
Markets was rela¬

Controls Justified

marily toward improving the gen¬

in¬

tremendously. Individuals,
including unincorporated busi¬
nesses and trust
funds, added $55
billions to their
holdings of Gov¬

total

loarfs,

the

at any

been

creased

the

Con¬

,they have beep Board, and (2) if the government
previous periods in history. continues indefinitely to pursue a

far greater than

December, 1945. About all that has
happened is that the speculative
rise in the early part of 1946 has

ernment securities and volume of

currency,

from

tively slight. Actually the level of
Government bond prices today is
very little lower on the average
than the level prevailing just be¬

toillions.

outstanding

market

last February.

sidering the scope of these opera¬
tions, accomplished as they were

than

dined

Government

the highs of

the

gan

the

461

credit in thebanking system from
the hands of the Federal Reserve

loan

—f;'. '

•»1,^

; f .j v! <t: vVl U"4vr„\,

THE COMMERCIAL & FINANCIAL CHRONICLE

:■

BUFFALO

Business—and I

mean

no more

More realistic

3. The advent of

between

employee.

and

manager

•

our progress. <

■

pared with

Westinghouse
cannot look to tax carry-backs to protect it against such
losses in 1947*
No tax law has ever been made that
f can assure wages or profits. These come only from the
| ability to make a good product and sell it competitively.
'

sketched the

have

darker

side of

the

^5947 holds in store for

but the facts

new

year

with nearly $600,000,000 of orders

the

payments have always gone

upland

I of

business, good management and

prosperous

Now

its

into 1947,

as we move

books

believe

and I

Westinghouse
find

can

the wrong side.

progress in its

can balance
good things

imonths of 1946

heights.

have

now

than 96,000

nation

our

are

set

Westinghouse, the

year

years.

•

Hjbe

mail

rate

-situation
•Board

must

the

Civil
the

In this

take

pected to continue

on a

factors

rate of

now

course

one-

back to what hey were in
•1941 and costs have risen 30%.
The air lines themselves will have
a certain amount of retrench¬

Most of
assuming that
conditions of

were

the

war

fault

feverish

.it

traffic

time would go on

Carleton

But

industry which has had

five-fold expansion in

volume in. three years can be criticized too
severely for

when to cut off plans to meet

determine

what extent

of shortages

reason

may

Every '

prices have

increased

and

worldwide

be temporary, ami

price level have been

decline

permanent

challenge

the banking business.

the

purchasing

of the American dollar.

overdone

and

can

factors

effects

was a

not in agreement with the many predictions of
near

there

the

segments in

are

ture, which

term future.

price, wage and cost struc¬

out of balance.

are

It is true that

The adjustments that are

taking place, and which will take place in the near
future, will be of minor, not major, magnitude.
They

in¬

The present conservative

will
of

cause

the

elimination, by failure and consolidation,

marginal producers.

many

efficient

obviously in

the

position

effects of widespread

industry,

there is

For the
a

competent and

substantial basis for

probability.

seeds,
and

There is believed

business—less

will

This is

and postwar developments,

war

the United States

increased and

effective

use

of fertilizer

rabid mechanization in farming methods.

continued

worldwide

opportunity for

our

shortage

of "food

Yet, the

provides

farm products,

sufficiently

if not

high to

the

government to find, by intelligent

efforts, methods for developing ample markets for
at present high prices,

provide

our

at prices

stable prosperity

the

farm.
Sound

banking policy in the

year

ahead bespeaks

caution in the over-extension of cerdit.
loans in banks

•_ this

serious?

are

increasing at

The commercial1

tremendous rate, and

expansion is

increased

working capital needs of business, arising frbm expanded
r.v-

oper^io^ ahtLhiglifcosts ql productife
and raw materiaUpi;ices);
Judicious conservati'sm in banking practices is needed to prevent an
nrivate credit striictture''
The present
**ie Present
potential; for credit ^expansion raises a doubt as to the.

labor rates

and important strikes involvtng.rnany
produce a larger recession: in. business

year ago,
may

required

for food, which in turn stimulated the improvements of

survey

adjustments

due, in the main, to the

and

volume

the

which resulted in increased demands

seems an era of. economic and
It is obvious that many now un¬

the

agriculture,

greater than in other phases of the economy.

accept either of these forecasts without

comprehensive

its

It is still too earfy

jiMge .the

course

of such developments, however, anft

continuous attention must be given to the labor situation

•

•«±-*—kk

xi_

acronpipc

/The

ability to?pay- debt:is '
creditor end

still greater demand;

believe the .following factors will contribute

founder situation in 1947;

were

improves.

vulnerable to

pat knowing just where the increase/was going to stop,
or

desirability of eliminating Heguiatioh^W" of the Federal
Reserve Board, or of changing the present regulations of
and to commodity and goods prices during ; coming
marginal trading on ithe security'exchanges.. The gov.months/ At present, however, the ^significant factors
ernment has the further-responsibility to avoid stimulatpoint to readjustment of moderate scope; rWith'sucli v,fog an unsound *xpansion<ofcredit.throughthe activities
to

business

activity than is anticipated now.

Putnam

case of air travel,
allowed this optimism to make' us over-liberal in
some of our expansion
programs.
From this standpoint
the current recession has been a wholesome corrective.

and

over-expansion, is

"boom and bust" in the

developments will influence the
of business and security markets.

Workers

indefinitely in the

an unsound

must

result

power

in many quarters/ It may well
begin early in the • year rather than, be postponed • to'
the, second- half.
The national economy, however, is
now much more vulnerable to the effects of strikes.than

•to: do

ing.

the

than now anticipated

are

developments.

of -the "expansion possibilities created by these changes,

yet avoiding

to what extent the changes in the

of present business condi¬
tions favors the preliminary conclusion that a business
readjustment is in prospect which will be moderate

that load

fundamental

sustained high level of business activity.

one

foreseen

Companies like Chicago and
!Southern, which before the war
|were operating on a plane mile rate
in the high twenties, cannot be ex¬

these

our mental horizons, to secure ah understanding

demand, the influence of which

reservation, although this

ihand.

?tenth of that amount

financial forecasters.

effects of

broaden

risen by

less propensity to strike among workers
than existed before the results of last year's action had
been experienced.

Aeronautics

first

the
*

banker to analyze and to continuously study

„

executive

to be decidedly

substantially

shift from profit to loss.

decline

favor reduce this strike

The result could only

to every man engaged (in

long continued strikes than it was last spring. Hence
the more optimistic view must admit the possibility
of sufficient disruptions being caused by labor
disputes
to set back business activity seriously.
However, the
prospect of lower foodstuffs and food prices and other
cost-of-living factors and possible fears of political dis¬

!air line, in the last quarter of 1946 we suffered a
J^turn
-to prewar load factors at postwar costs and in
many
cases

open-mindedness that will

today requires

+v,Q

The national economy is now

1947

have been decreased from 35%

reserves

Competency in the banking

and

Speaking from the standpoint of the medium-sized

.below; 1941.

for

even

which is

President, Chicago and Southern Air Lines, Inc.v

We have reduced the
required gold certificate
for currency in circfulation from 40% to
25%,
Federal Reserve Bank deposits, the required

business

clusion.

and

CARLETON PUTNAM

result

We have the greatest
ownership of gold ever
in the hands of one

forecast might be justified.

usually ^stated as a
be accomplished in

capitalization of industrial earnings in the stock market
the prospect that earnings would be
moderately
and only temporarily affected, would lead to this con¬

pro¬

overcome,

actually

and

peacetime
new

not

vestors' confidence

employees to do the job.

for

and

be the best of all

can

new

We have increased facilities to

For the

our

will

severe

Even in the last

production reached

our

duction records if material scarcities

#we have

business

will

developments follow the second course, industrial
stock prices need fall little, if any, below the lowest
levels of the past quarter and might even rise subr
stantially if it becomes apparent that the fears of a

Westinghouse has made substantial

before in peacetime.

ever

of forecast

$132,000,000 postwar expansion and recon¬

version program.
books than

type

Frank C. Rathje

If the tremendous influence of these
changes in our
monetary and fiscal affairs could be determined, then a

later—is beginning even now, and accordingly
may be finished before the end of 1947, if not earlier.

the right side of the ledger than distributing factors

•Jon

to 25%.

view, in
general, holds to the belief that the readjustment, in¬
stead of being postponed until the second half of 1947—
or

and

demand which will prevent the recession from
going
as
far as forecast by the first group.
This

coopera¬

debt

which are the
major portion of the remainder of the

the

gold certificate

tive labor.

Fifth:

the

which

reserves

sharp shrinkage of ^business
Such price and cost adjustments as occur will,
in this view, facilitate the meeting of the
strong demand
which exists for construction,
equipment, durable con¬
sumers' goods and some items of non-durable
goods—

Increased wages and increased profits both come out

Federal

Series

held,

nation, totaling in
excess of $20 billion
(at $35.00 an ounce), compared to
$4 billion in 1934 (at $20.67 an ounce).

activity.

profits go down.
J."

second

Bonds

Fourth:

well, those adopting the second generally look to the
anticipated decline in prices of commodities and goods'
the basic developments now in prospect.
They believe that the adjustment will be spread over a
period

when profits have gone
payments go down when

the

concentrated

peaks.

"E," "F" and
the main, by
private individual investors, as dis¬
tinguished from institutional investor's,

salary

and

wages

billion

the form

"G"

and prices with«ohly a moderate amount of contraction in business activity. As is true of the first view

We hope this happens because total wage and salary

outlook,

give way to

The

and

new

costs

We hope that the estimate proves correct that the total

1946.

$50

readjustment

| losses, not when they make profits,

in¬

1934

Approximately 40% of this debt is
in the form of short term securities.

com¬

Such forecasts

activity of the first half year
sharp and severe decline during
the second half.
Investors' confidence might then be so
undermined by such a development that stocks would
decline sharply and probably to new low levels.

company.

profits of all corporations in 1947 will reach

industrial production as

have

$45 billion in

debt.

would

The production of this great volume of
goods can mean steady work for the 96,000 Westinghouse
-employees—the largest peacetime production team in
r
the company's history.
By working together we can
s
meet this record production goal and do it with good
wages for all employees and a fair profit to our company.
I should like to emphasize the importance of profits to
3 the prosperity of all of us.
Without them there can be
no prosperity.
For it is only out of profits that a com¬
pany can increase and improve its facilities and provide
more jobs.
Companies should apologize when they make

120.

economic

its books.

^This is the greatest backlogin the peacetime history of
'

index

current level of about 180.

Bank deposits

from

Third: The Federal debt has
grown
from $20 billion in 1933 to
$260 bil¬
lion at the present time.

expansion in the first quarter and little let¬
down in the second quarter, thus making a very active
first half as a whole.
Under this interpretation of the

do have are

holders

ward

! encouraging. For example, Westinghouse approaches the
•

distant future develop¬

approximately $150 billion at the end

If business developments are to follow this
pattern in
1947, industrial stock prices might rise for a while above
present levels, since such forecasts generally look for¬

picture first

and certainly do not wish to dwell upon it, because there
is, a bright side too.
Nobody knows for certain what

Second:

around

than $4,000,000.

have

We have expanded our cur¬

creased

usually involve little change in the first half of 1947,
but an accelerating decline thereafter to a low point
in, say, the first quarter of 1948.
They do not however
contemplate'a decline comparable-in severity with the
pattern of 1937 or 1921, which would result in an index

J quarter billion dollars of sales in the first 11 months of
1946 was but little

Board

First:

prices during the year,-leading to a "depres¬
in the neighborhood of 140 for the Federal

Reserve

Even after giving effect to the carry-back provisions
of the wartime tax law, our net income on more than a
J

well

sion low"

- '

which

factors

during the past 15 years which
profound influence, both on the near term

rency in circulation from $4% billion
in 1929 to $29 billion as of the cur¬
rent date.

travel.

Two well-defined types of forecast of business condi¬
tions ;have^ developed in ^
to 1947,
The first of
these looks forward to a substantial recession in
activity

to 1941..

FRANCIS F. RANDOLPH

All have comAs a result, Westinghouse
'sustained an operating loss of more than $50,000,000 in
1946, in spite of the fact that its dollar volume of produc¬
tion has been greater than in any peacetime year prior
slow

bined to

installation).

Chairman of the Board, Tri-Continental and Associated
i! Investment Companies

critical materials and pricing difficulties.

fundamental

our economy

ments.

and the

There

We have had a long, costly strike, shortages of

f. house.

certain

are

will have

production and consequently

1946 has been a difficult year for "Westing-

'The year

There

emerged in

4. A sounder national economic
picture with improved

should be no conflict of interest between two members
of the same team.

•

the initial period of

mutual progress;

team-work

President, Chicago City Bank and Trust Company

economical and faster equipment
(although this factor may be somewhat slow in taking
effect, as there will be substantial costs involved in

Understanding and unity, like
charity, begin at home.
We cannot have national unity
or world unity without unity on a local level.
And the
place to begin to achieve that unity is in the individual
business, in the development of confidence and trust and

management planning in the light

postwar traffic experience.

whoworks in industry
important task than to

understand and make clear the facts of mutual interest
and

•

FRANK C. RATHJE

the individual carriers.

^people who share a

everyone

c6mmerce~today has

■

A mail rate structure better tailored to the needs of

(Continued from page 460)
right and the same basic
"tfCbnhnon economic interest. /'
a:

debtor

^sound economy.

ings and dividends.

(Continued

on page

464)

;

Volume 165

billion

The Outlook for Interest Rates
,•

■

Vi'v.

(Continued from page 461)
slight firming in. this section.

This logically, would be
expected
to extend to intermediate

bonds,

tout with the maintenance of the
1% rediscount rate any rise should
foe moderate and I question .that
the

long term rate heed
fluenced at all.
J3E
modest
premiums

in¬

over

21/2% long hate and 2% interme¬
diate rate are satisfactory to the

'.v

pfoductiohy Vbefore

activity probably could

That the overall borrowing cost
with

crease

policy of flexible

refunding? results from

easily upset by a disrup¬
production than by any
one
other factor.). What is most
needed to assure a sustained high
level of economic; activity is comore

tion

the fact
that the $47 billion of debt, other
than certificates, due or callable operation between labor and man¬
in the next five years, carries a^ agement and a realization on the
rate of almost 2%. on the aver¬
part of labor that real earnings

age, and a good portion of this is
partially tax exempt. If all mar¬

secured

only through in¬

this

issues, including certificates
coming due within the next few

the Treasury of
carrying the; debt
would not be increased from the

creased man-hour production.

Despite
against

of this latter factor is that

guage

profits

essential to assure the neces¬

are

sary

flow of capital to business.

Mass psychology is always

the

arguments

for

flexible policy, the lanused by the President in
a

his recent budget message would

can be achieved, the ft{rd fac^.
tor, reasonable profits to industry
Will be assured*
The importance^

present cost.

can

ket

years were refunded at an average
rate of 1%%, the overall cost to

dif¬

ficult to gauge. For the past Sev¬
eral years the large credit reser¬
voir

and

the tremendous amount

liquid assets in the hands of
seem to preclude the possibility of
individuals have provided the base
for the explosive type of inflation.
any change toward a lower level
of prices in any section of the
Historically, inflations have had
government bond. market for the their foundations in just such situ¬
present. Thus, to sum up the out¬ ations:
shortages, large money
look for the basic rate, or that supply and inability to purchase
which
prevails on government goods. During the war controls
bonds and Which exercises such were successful in preventing an
a strong influence on rates for all
outbreak, and although goods of
other types of investing and lend¬ the type for which there is the
ing, the prospect is for little greatest pentup demand have been
change, At best, and I use that slow to reach the market since the
advisedly, at best ev£n under a war, the American public has
flexible policy, if that were to be exercised commendable restraint.
adopted at soma time in the fu¬ In fact, the more recent price ad¬
ture, only a modest firming in vances have met with resistance
there

short and intermediate rates could

and

toe looked for.

psychology that

I have

emphasized that the
rate

ernment

force

other

the

most

rates

gov¬

for

potent

lending
and investing. On the other hand,
it is far from controlling. In fact,
it is probably less important at
present than it has been at any
time
during
the
past
several
years, this because there exist to¬
day other borrowers, in the mar¬
ket

substantial

when the
debt

some

volume

•

economic

will

has

produce

lower prices.

existed

late

Waiting attitude

better quality at
This psychology, to¬

gether with the distorted position
of

inventories

refer

later,

which

shall

is the main basis

the expected

early and short

;

for practical purposes.

debt.

There is still hope that the

Congressional

majority may
successful in achieving this.
^

As for the next factor, interna¬

tional

trade

and

money

eign countries will begin to taper
after

the

current

and that future

fiscal

year

capital for foreign

countries will be provided largely

are

the

take

as mass

exercise

see

ma¬

Government

bonds ,at a

purchases.

the

time, it

same

should be expected that insurance

policies will be continued in force
and

that

insurance

new

will

purchased, at the same rate; that
has prevailed over the past sev4
era! years. In addition, some of
the

funds of

individuals

avaijtableVifbr

will

purchase >of

•

mahke t securities, particularly
equities;' While it is too early ; to
Say that the recent decline in odt-*

mands probably will converge in

the field of

residential construc¬

tem

tion,

thus

providing

mortgage

Som'e of the excess

loans

estate

ohe; reason

loans

substantial

real

quantity to

believe .that the

Will

(Continued

commer¬

banking sys¬

thev beneficiary

cash that for

another has; been

465)

on page
■'

national Bank. With the prospect
that the United States will be a
net exporter for

there

come,

inflow of

may

several

'.'Ja'.

to
modest

> V.V'V ;

years

some

Z-

gold in settlement of in¬

ternational

transactions

but

the

■■

'.'e .e.

C..

bulk of exports

obviously will be

paid for through borrowing. One
more

point

the budget.

This

shows only a slight surplus of re¬

ceipts. On thg other hand, taking in¬
to account non-cash expenditures

re¬

and

agency

have

transactions,
cash

something

basis
excess

addition

the

underwriting

new

capital

should

issues, Smith, Barney & Co. frequently pur¬
chase

U. S. Governments

estates

and distribute
0

them

Municipals

through dealers to investors, by "sec¬

ondary"

"special" offerings.

We welcome the

Public Utilities

psychology—ftaxes

these, together
with debt management and Fqdera! Reserve policies go to make
up the supply of money, demand
for money and. the rate at which
money
is available -to t various
classes of borrowers. Eadv is de-i
serving of some discussion.
In
:©£der to relate one to the other
and gauge their composite effect,
upon the leading: borrowers and
leading lenders, certain as&ump^
ihade. •

large blocks of securities from institu¬

tions, individuals and

fac¬

with dealers

not

Industrials

movements—all of

opportunity of working

oaly in this field but also in

ippnnectiM With local dealer origihationsi

•

Railroads

where

complete facilities may be of

our

•

the financial

active business pe¬ standing currency represents a
Their main borrowing de- permanent Arehxi/.there is- ieasoiv!

chinery in
riod.

ings

rafe^lijghtl^tn'ekcess bfthemhrnV:;

through the machinery of the Inter¬

ity.

and international trade and money

individuals

what effect they can be expected

move¬

ments, the budget indicates that
direct governmental loans to for¬
off

first
to

for

From the longer standpoint,

this

viduals

and

productivity of labor, profits of
business,, individual habits with
respect- to saying, spending and
investing—-which is better ex¬
pressed

banks, insurance companies
savings banks. BeyOAct this,
individual
borrowing "require¬

post-war period, indi¬
likely to increase both
their assets and liabilities. Savings
will be sizable as will borrowings,
tax reduction, which could and
but net, individuals cannot be ex¬
should be accomplished
through
pected to accumulate funds at
the return of governmental Opera¬
tions fo a peacetime basis. Prompt anywhere near the rate they did
liquidation of agencies, bureaus during the war when goods were
unavailable for purchase. On the
and fobs created for war
purposes
Wodfd go a long way toward per¬ other hand, some net accumula¬
mitting a reasonable reduction in tion is to be expected. To discuss
taxes
and
larger retirement of the principal borrowers, let us
The most disturbing element of
the budget is that it allows for no

Treasury

the gross national
level of prices, the

by
the

cial

and

lenders.

eral level of the economy as rep¬

product,

basis with

prospective borrowers ana sbme of this group of individuals
In the non-Treasury seg¬ are contracting debt, others will
ment the principal potential bor¬ continue
to accumulate savings,
tSxes^-'Ts: jfep
tant both with respect to purchas¬ rowers are corporations, states and resulting hi a prospective increase
in commercial bank demand and
ing power and profits, as well as for municipalities and foreign coun¬
through the International tipie 'deposits. It is expected on the
its effect upon the government's tries
Bank. On the Other side the lead¬ other hand, that savings bank de-r
fiscal position.
The President's
ing lenders are the savings banks, posits will tend to level off as
recent budget message was dis¬
appointing. The. hoped-for reduc¬ insurance companies and commer¬ money is withdrawn to purchase
cial banks. On both sides are i»r goods for which the savings were
tion in expenditures did not ma¬
including
unincorpo¬ built up originally. For the same
terialize and the projected surplus dividuals,
most i estimates indicate
available for debt retirement is rated businesses, trust funds and reason,
estates.
that individuals will redeem hold-1
so negligible as to be non-existent

cession in general business activ¬

tors influencing interest rates are
of wide variety including the gen¬
resented

annual

publicly held debt.

the

The Budget and Taxes

government is retiring
for the first time in

the past 16 years.
The natural or

■,*

tory.

engagein

to the government would not in¬

viv;-

'^V

which to retire

Borrowing Prospects
ments will be principally in the
garded by most authorities as im¬ we are assuming that the combi¬
This background of the general field of consumer finance to pro¬
probable. This case rests upon the nation of the three factors—prices,
vide fqnds. for the purchase., of
thesis that the great backlog of labor productivity and mass phy- econphdc
influences
obviously
produce
several could vary considerably from the automobiles • and otherdurable,
pOnttip
demand
for consumers cholb'gy — will
consumer goods. The commercial
durable goods, housing, automo¬ yearn of a generally high level of set of circumstances we have ar¬
system should supply
at
prices somewhat bitrarily chosen. I shall discuss banking
biles and capital goods is expected production
(either directly or indirectly the
to provide the stimuli for a high lower than those now prevailing, later the effect of a less prosperous
.bulk. of this dernand;; "£)'}$!;
level of gross national production accompanied by reasonable profits or a depressed economic situation
To the extent that loans ,are cbn->
for several years to come. Let us to industry and a higher standard on money rates. Let us first ap¬
accept this as bur first assumption of living to labor than it has en¬ praise what effect the assumption tracted in the banking system,;
—a
high level of gross national joyed in any previous time in his¬ We have taken will exercise on deposits Will increase. Also while

I should think they the guesswork iii relating the other
would be, the present market in factors.
The:^ecdnd:• 1actor,SgtKo
these categories affords plenty of productivity of labor obviously
leeway for a modest adjustment. has, a strong bearing on the first
and the predicted high level of
Cost ef-feoi^owing; Not Increased economic

Treasury,

463.

TH$'COMMERCIAL & FINANCIAL CHRONICLE

Number 4562

Canadians

service.
teW'-

Preferred Stocks

Wei

r&u
>.•

;

arrive*

the

prospective,,

Neuilforik.

general level of the economy over

feu
referring to the; next several

•

let

14 WALL

as expressed

522 HfTH AVRNUR, NEW YORK

New

by the gross national s

adopting the view
: of
most of the professional fore-:
-x^sterj that some recession on busr i
&
.

BOSTON

of this year hair be
expected.

CLEVELAND

sion of

Pjdveith yrtres'ij*;
PHILADELPHIA

CHICAGO
HARTFORD

a recess:

temporary;, duration; is. re^

Sixty Wau^ street

■

ipess activity during the early part;
On

•r
•

PHItADELlPHIA

N*W YORI5, N.Y.

the other hancb more than

1E&bm&

STREfeTi NEW YORK

years

take the next foiir or five—
«ven that is looking too far ahead)
us

product, i

.tec

SMITH, RARMW & GOi

'f- AlShoH Recession of Business

CHICAGO

lee

THE COMMERCIAL & FINANCIAL CHRONICLE

464

Thursday, Januairy

23, 1947

?-\U-

Business and Finance
>

vate

(Continued from page 462)

Sua."

These

Chairman of the Board and President, Merchandise

extinction of

our

We hang precariously in
the balance though neither space nor

free society?

;

! A

time

be wasted in this article on

can

post mortems concerning the causes
of our present situation. Government
controlled economy is at mortal grips
with

private
the World aiid
the battle

throughout
we have engaged in
token of "keeping up

cast iron

subservience

tion to the State.

individual

the

) gredient in
.

the

our

in rela¬

important in-

domestic

his

Redheffer

Whenever

and

becomes

integrity.
mere

cog

vast machine of government,

in the

strength
he

done for, whether we continue to call ourselves
*'free" or not.

E. J. RIES

President, Ritter Company

must surpass in

for

vitally

needed

vitreous china, plumbing fix¬

are

considerable

portion

the

huge

postwar

During
and

problems,

American-Standard

steadily increased and by the end of the
tained

nearly normal

any

substantial increase

had at¬

might begin 1947 on an authentic
and actual basis insofar as possible.
We believe we have accomplished
this end and our records show a very

production volume. Our

prewar

both in

year,

production

year we

plumbing

output

over

heating

and

large backlog of

products.
Our

demand

and

for

prepare

increased normal future

de¬
E.

Southern

Los

area,

and

Richmond, California, in the San Francisco

well

area; as

contemplated increases in present factories.

offers the first opportunity in 15 years for the

$
'

Whether the forces which have
Shaped business life for the past 15 years can be entirely
eradicated or whether they have become too firmly imwinds of competition.

bedded in our economic thinking to allow us to get back
to free enterprise is yet to be seen.
Obviously, only
time

can

tell whether

will accept the challenge and

legislation will be enacted that will further relieve
the unfair restrictions with which it has

it of many of

ARTHUR M. REIS

j: Government
business.

During

the

change from

1947

year

'■

policies always have drastic effects on

primary task
else depends.
to follow the will-o'-the-wisp of "spendfiscal policy on which all

our

We must cease

ping • ourselves into prosperity."

We must balance our

liudgdt, let the chips fall where they

may.

We must re-

| Vive ibur healthy concern for posterity by revising our
f attitude toward our national debt. It is disturbing to obn
serve^how careless the present age is about laying up

scious.
sales

and

I Our

many

for

merchandise.

labor is unreasonable
tinuous strikes,

level and

over

inum

;

enormous

•'

Chairman of the Board, American Standard Radiator

and Sanitary Corporation

in; 1947

and

unless

unforeseen

events

again

j. interfere with the Nation's economics, we feel that the
g tiext .twelve:months-• will witness a
.iWv&V"-,
period

of unequaled production for

the

new

Department

construction-in 1946

My feeling is that there are a great many fundamental
that must be recognized and accepted by both

truths

management and labor unions, and when accepted will
give a basis for working together, which can easily
accomplish the greatest era of prosperity this country

car¬

has

Reynolds' aluminum.

true!"

not

still held

one

removed/ the

to the intense heat
once

■"

fe j

President, A. G. Spalding & Bros. Inc.
All

rays

from

thereafter.

is shown by the reports of the record-breaking attendance at all sports

| events—golf, tennis, baseball, foot| ball, basketball; and hockey.
More

t important to the athletic goods in-

§ dustry is the participation of indi¬

After a

viduals in these sports.

its long

f previous period^ In golf and in tennis, we < see more active play than

It;

| ever before.; In the schools arid col¬

' : X

leges, baseball, ;softball, football and

coating of aluminum reflects 96%

!.?

than

1945;

while

that

uses

$1,69^

[000,000; and privately-owned ; jpublic

futilities $851,000,000.

the

world

and

stands

of the.;world.

Some
of

$3,303,-

1000,000; private industrial

the world has
a

thousand

ready and eager to

Charles F.

the

Henry M.v Reedl l

our

ftimi

ago

a ] r ...*

sirability—if not even the necessity

->■,

I traveled- With an-executive of one

great1 transcontinental railroads;

We decided to

calculate|the weight factor of aluminum,
>with :steel in refrigerator cars*

culating* indicated

developing and maintaining good physical condi¬
tion, combined with the development of character, both
of which result from properly organized and supervised
athletic programs.
Much is being done in this field
through educational programs which are being conducted
bjfe several State|;county>and^^
a&
well as by the many service organizations which are
active both nationally, and locally. The benefits to be de¬
rived from this activity mean so much in thedevelop-

compared

The results of this cal¬

that this.one railroad cpul&save $10:

|T There was a500%;increas&M private^ cohstihcti®b^4 ! million, a year by thecsubstiiiition of aluminum for the
I warehouses, office
and loft buildings. Compared withi-B super-structuce^of refrigerator cars; and - enable each-;
il945,; ppblip residentiaLjConstructi<m^was^up,433%pprfc^> train* without additional cost, to carry -fifteen extra cars,;;

before the war.
/
background, there is evident
a greater appreciation on the part of
Robbing 1 f (he
average community in the dell

new

save

appealing to a greater
girls than for

4 many years

for this magic metal which has saved the freedom

peace:

j aggregated $2,263,000,000. Residential
valued

one

are

of boys-and

number

—of

Private
construction
aggregated
$7,868,000,000.
Public
construction
was

such

This is but

•

December doubled the corresponding
i month .of the year before.

| construction

and for fiber,

known before.

basketball

steel, for wood

Here again

| the interest is greater than in any-

of the heat rays and opens up new fields of service for

never

1947—and very

and handed it to Mr.

A thin

athletic
probably for several years
Spectator interest is at an all-time high, as

indications point to a strong market for

goods

It is

again exclaimed, "It is not true!

It is true.

cool sheet

CHARLES R. ROBBINS

had

finger against the sheet of

steel plated with the magic metal of Victory.
few .minutes,

known.

minute, Mr.

exclaimed, "It is not true!

cannot be true!"

valued

In less than

ever

came

materially reduced during

to employees generally Will be the reduction
prices, which can easily be made possible by greater
production. This will mean more money in the bank at
the end of the year for every one.

office of Mr. Eugene
small sheets of Bethle¬

F. L. Riggin

the

hem Steel—one sheet just as
from his mills and the other

de¬
be¬

real wages

the

Grace, who:

$10,131,000,000,- which includes
$909,000,000 for December. The 1946
total was two and one-half times

'j greater

with

Commerce,
was

war

goods. I

creasing prices. That is a fallacy which the whole year
of 1946 clearly demonstrated. The ^greatest increase in

sheets faced

battle.

exposure

I the entire industries.
|
Construction- and plumbing and
j heating go hand in hand. According
to

Reynolds

Grace surrendered and

We are optimistic concerning the outlook for the in¬

dustries

usurp

continuous large
kinds of

and that prices will have reached their peak
and will hit a downward trend very soon. I do not be¬
lieve that increased wages can be absorbed without in¬

each other across the flame, arrayed
challenged the great Steel Executive to
place his finger on the unprotected sheet of Bethlehem
steel while I placed my finger on the sheet of steel clad
for

HENRY M. REED

thief

all

for

the year,

armor-plated witlj a thin coating of aluminum. I placed
both sheets on an open-flamed toaster on his desk.
The
two

| of American enterprise.
•/'•v..--''-

labor legislation,

productive possibilities

into

Grace, two

Therefore, business and the people will be greatly in-

to their maximum the

A short time before the

ried

f Both have important bearing on the problem of bringing

not

comes

see

can

lieve the cost of living will be

night to rob and to destroy. In
the spirit of the new age that is
dawning, aluminum comes bringing
new
magic of protection that will
multiply the uses and the service of
steel, of wood and of fiber.

The national debt

our

mand

steel, of wood and of
Take my word for it—alum¬

fiber.

of money in circulation.
fiscal policy and

will

aluminum

and

his employees.

the thrones of

must be synonymous with greater pro-

the value in the pay envelope.

how

themselves

employees

seriously impair the ability of the
employer to do as much as he might
otherwise have been, able to do for

considering the best way to conserve
the supply of aluminum for the most
strategic requirements of peace.
You
may
have heard the wild
tales

the

for

Aluminum has always had the weight strength factor

The pay envelope means little if prices rise

our

material

and now, with its low price, it is entering into a thousand
new
uses.
The field is so large that already we are

hope that in 1947 all wage earners will realize

i fluenced by

con¬

high

President, Reynolds Metals Company

-Causes inflation and deflation by variations in the volume

mar¬

labor

permit co-operation and
working in harmony. There is evi¬
dence that a great deal of construc¬
tive thinking is being done by busiand
by those who represent em¬
ployees, and far more important, by
employees themselves.
The year 1946 has clearly indicated
to management and
to employees
that long strikes are riot only ex¬
pensive to every one, but what is
more
important, they gain nothing
will

that

attitude of

should witness

understanding between management and

need

the present level.

pay increases.
It is unsound economics to
;j believe that wages can be raised indefinitely without
i affecting prices.
Government policy has a great effect

the country

good

assures a

Unless, the

prices of commodities will show

difference

| faster than

fen

con¬

The standard of

production will be maintained at

| ownership. Perhaps the single most important individual

pay

high level.

States

United

"quality"

and

help but be optimistic about the future of the
and for business in 1947. Our greatest

I can't

the other hand, is

This, in itself,

war.

quality

| is the unknown stockholder.

j that greater

President, Mueller Brass Co.

millions of people is substantially higher

I outworn tools will be impossible except under State

j duction.

F. L. RIGGIN
a

R. S. REYNOLDS

| goods; If management can not hold out the prospect
I; of profit to investment capital, the rehabilitation of our

while

should be government's atti-

secondary concern

f tude toward labor and labor's attitude toward the public.
we concede labor's right to a fair profit for services,
J: We must concede .management's right to a fair profit for

Let

undoubtedly

"value"

remain

than before the
ket

will

buyer's market and

The current national income will be great and

should

debt and taxes for the next generation,
f

■

there

seller's to

output will be large, the public,
becoming

living of

First things come first, and our

is to reform

had to contend during recent years.

President, Robert Reis & Co.

make the grade or not.

;

the many ills

by which it had been harrassed during the years of the
war.
Many of the governmental regulations have been
removed, business is being given the opportunity to
function more nearly normal, and we are very hopeful

Plumbing Brass plant at

Ries

emerged from some of

California, located at Torrance, California, in
Angeles

Vitreous China plant in

a new

business that will

permit us to operate our plant at full
capacity throughout the year.
We are further encouraged by the
fact
that
business
has
recently

company's contribution to help supply the

own

mands, is the erection of

the

which we have on

During the latter part of 194b
we
carefully reviewed all of our
orders on hand and with the coopera¬
tion of
our
dealers attempted to
eliminate all orders that were fic¬
titious in character in order that we

despite nation-wide material shortages

1946,

labor

orders

back

file.

backlog

demand this year.

I individual to return unto his own. As government con| trols are gradually lifted and we return to free enter> prise, business will need to emerge from its chrysalis of
^-government-regulated prices and fly again in the strong
>

that

fell-1947

are

air furnaces and plumb¬

warm

Inc.

entering the New Year with a spirit of opti¬
mism, which we believe is well-founded within the
dental and medical field. Dental and medical equipment
;
>gt
are in urgent demand the world over,
evidenced by the large accumulation

1947, with

economy,

serve

was

ing brass for essential needs. We foresee inroads of

still believe

must do all in our power to pre-

farm,

321%.

particularly

goals for 1947 call for

The hall mark of private economy
or

schedules,

excluding
up

tures, boilers, radiators,

is the status of the individual and his
dominance

figures

enameled ware,

economy

with the times."
'

the

are

stepped-up

National Bank of Chicago

What will be government and business trends for 1947?
Is 1947 destined to be a long step towards survival or
f

construction,

393%; and private industrial

R. L. REDHEFFER
-

Speaks Alter the Turn of the Year

residential

and liiriprpYement^

tl^popplatforiloL ou^bouriti^r;
V

■

r-1

»-*'•#

r- r f

■*

l:\4.7

'If--

}

v":&v::G

.'J;#^s-iS.•

Nuynber 4562

yolume. 165

COMMERCIAL & FINANCIAL CHRONICLE:

■IMMNHMipVMMMPVMnMnpMMMMMIMnnNMMaMMMMaMMMMH

■

rmi-

banks.

-f v.', mm.

-iv-7('„

•

Generally speaking, how¬

credit would: appear to 6e in the
the character and volume of teal estate field through individ¬
savings banks assets are expected ual borrowings under FHA guar¬
to undergo little change in an ac¬
antee, this to be followed by
tive business period over the next loans to others in the
consumer
ever,

(Continued from page 463)
carried in pockets or kept in mat¬
tresses during the war.
Corporate Capital Requirements
Now to take the position of cor¬
porations. At a high level of gross
national product the new money
requirements of industry
(over

the next several years), are vari¬
ously estimated at from $5 to $20
billions. Given reasonable profits,
a good portion of this is expected
to be financed out of earnings, and
some
of
it
will
be
provided
through liquidation of holdings of

securities.

Government

hand, a sizable amount of
money will be required through
equity
financing,
open
market

borrowings, term loans from in¬
bank debt.
of industry's
prospective requirements falls in
the field of capital goods worn
out or rendered obsolete during
the war. New plants, modern tools
and heavy equipment are most
needed. The bulk of this type of
capital should be raised out of
earnings, financed in the equity
market or through borrowing on
long-term securities. The amount
that corporations are likely to seek
from the banking system, there¬
surance

companies,

largest

part

for

several

years

through

come.

insurance

and

offerings
sorbed

demand

companies

probably

municipal

new

will

Further,
be

the

attractiveness

bonds

diminished

taxes

their
and

are

pear

importance

to be

would

ap¬

loans to foreign gov¬
most

■

machinery

tional Bank.
the

which

;

the

Since the

underlying

loans

bonds

issued by

Inventories

for

moment to

refer back to my previous refer?
ence
to inventories. The
dollar

They
excess

Mutual

make

term

extend

long-term

Thus

commercial

omy

require.

may

earlier,

also

may

available

will

circulation

increase

tend

increase

and

the

reserves,

increase

gains

that the

most part

transfer

will

the

confined

jor

might

minor

have
for

ment

will

have

retire

marketable

some

rise

can

this

will

holdings.

ma¬

directed

On the

(Continued

from

lending

earning

desirable loans

467)

•VA

investment

this

opera¬

<W:'

securities

assets.

For

deficient and

are
are

available,

sav¬

ers

securities

government

Blyth & Co., Inc.

14 WALL

The

con¬

San Francisco
Boston

is true of corporate se¬

same

•

Los Angeles

Providence

•

Indianapolis

Stockton

J *

Houston

Sacramento

•

Pasadena

Santa Barbara

•

Pittsburgh-

Minneapolis

Dallas

Spokane

Fresno

San

•

Diego;

San

Beverly

Jose

in financing of Connecticut

Long Beach

and

participated

industrial, bank,

insurance, and public utility companies.
kU

TP-

■|Hk:V ; 1
Sv

sup¬

PUTNAM & CO.
6 CENTRAL

v\*

* 111

\</,\

1 GROUP SECURITIES, INCH
''wrwaiuMMMr

Members of the New York
Stock Exchange
Associate Members of the New York
Curb Exchange

ROW, HARTFORD 4, CONN.

Telephone 5-0151
NEW YORK

substantial volume

CAnal

BOSTON

6-1255

Enterprise

BELL

1540

Teletype Htfd.

564

A Mutual Investment

expert on this sub¬

Company

.fjKi (Ji''

WITH; SEPARATE CLASSES OF SHARES

Established 1856

H. II i:\TZ & CO.

get back to the main subject,
corporations re¬

to the extent that

their
way

NEW YORK

open market borrowing,
obligations will find their
into insurance companies and

COTTON EXCHANGE

u;fb;

BLDG.

Agricultural

Uptown Office

savings banks for the longer ma¬
and the banking system
for the shorter maturities. Again,

CHICAGO

Electrical

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND

Equipment

Petroleum

„

great ,many. years, yhe total of
borrowing authorizations in.tnjs
category for the present year is
in excess of $1 billion, and the
needs of municipalities easily
could support this rate of borrow-

Low Priced

•

Building

•

Chemical

•

Industrial Machinery

•

Merchandising

•

Tobacco

•

Mining

Utilities

★

STOCKS

to the

Steel

Food

•

Borrowing

probable
requirements of political subdi¬
visions; States and municipalities.
"With the large deferred main¬
tenance during the war, higher
operating costs, new constructions
such as schools and airports, and
with soldier bonus payments,
States and municipalities have be¬
gun to enter
the market in a
sizable way for the first time in
come

•

Automobile

•

Investing Company

posits dollar for dollar.

Railroad Stock

•

610 FIFTH AVENUE

■

of course, increases in bank loans
and investments increase bank de¬

Municipal

Aviation

Railroad Equipment

HANOVER SQUARE, NEW YORK
4, N. Y.

turities

Hills

tories.

sort

•

Detroit

•

Coverage

40 years we have initiated

over

ject but I mention it for what it
is worth in perhaps eyeing with
suspicion any further substantial
rise in the total volume of inven¬
To

its

Portland

Seattle

•

Philadelphia

•

Louisville

•

Salt Lake City
Eureka

STREET, NEW YORK 5, N. Y.

Chicago

Springfield

Cleveland

hands of consumers. I do not pre¬
an

page

neg¬

ings banks might be modest sell¬

)

For

of some lines of inventories in the
tend to be

will be confined to the

gage portfolios

estimated

there is a belief in some quarters
a

example, to the extent that mort¬

Connecticut

ported on the basis of the present
price and sales level fails to take
into account that neither the price
nor sales
level is guaranteed at
any
specific level. In addition
that there is

|to Vbank

other hand,

redemptions of savings bonds by

bank

further

For,

Private wires connect principal offices

turn

economists that

debt.'

Underwriters and Dealers

distortions—

some cases to obtain
two essential parts re¬

inventories

with which;

the most part it is expected, that

from the markets. The contention

minimum

annum

have

individuals, at the same time provide the funds with which to
are contracting debt and re¬ increase
mortgage
investments.

out the finished
product. In other cases, oversup¬
ply has resulted from price re¬
strictions
that have encouraged
manufacturers to withhold goods
quired

MkjXX* M

acptC §hortages in some lines and
substantial oversupply in othershave come about because of in¬
in

for

Summary

pur¬

Oakland

one

well
The

;

$3 billions per

percentage

demand

Rock Island

ability

Now for the reconciliation. iVe
have estimated that the govern¬

vary with the
capital markets,

banks

source

tinue their present insurance in
curities and International Bank
is the
time in history. force, purchase new insurance, securities to the extent that
they
In relation to sales, however, we provide
capital to corporations are made attractive to
savings
are told that inventories are be¬

the

will

deposits
also

of business' total needs.

any

The

ings of municipal bonds should
increase by fairly sizable amounts
for some years to com p.
*1

the assumption we have taken in¬
dicates that business borrowings
from,

highest of at

normal.

stock

bank

Deposits

of the

value of inventories today

low

possible

will
loans and investments
While the outlook for

loans

condition

are that this will not
factor of too much impor¬
On the other hand, hold¬

tance.

increase.
bank

currency

gold

and

chase is difficult to estimate! The

probabilities

some

experience

deposit

banking

As mentioned

return

some

tions of these institutions for the

funds

deeming savings bonds, will

the

system is left to provide what¬
ever balance of credit
the econ¬

Bank

International

savings banks,

estimated,
ligible

they

ought

$3 to $4

which

the

The amount; of'In¬
securities that
may be designed for bank pur¬
ternational

chase of government bonds.

com¬

This constitutes

We have

Bank.

level

securities.

from

purchase

slight

the bank

for

force

during the

loans,

securities

banking system.

demand

continuing

money on an an¬

with

and

made available to the commercial

that
would

ex¬

money

corporate bonds, as well as

foreign

Some maturities may be

probable

new

basis

loans

nature of

savings banks and insurance

the

are

companies

available

mortgage

Interna¬

rate

same

have

nual

should be designed primarily for

panies.

lesser

insurance, at

new

loan category *

years.

Commercial Bank Prospects

from

insurance

several

deposits
a

some

individuals

billions of

countries is long term, maturities
the

return

present

war,

indicated will take place through
the

and

addition, they

the

say

only other borrowing de¬

ernments

deposits

banks,

purchasing

mand

With

individuals

reduced.
The

time

both their

from circulation.

municipal
will

securities

categories

Government;

Underwriters

AND

ahead,

be the borrow¬

will

comprehensive; investment

widen.

active the period

demands

aside

investments

•;

We Are

Particularly Adapted

situation

to Service Firms
With Retail Distribution

Your Inquiries. Solicited

begih%vtp, assume: boom prppofr

ESTABLISHED 1890

tions, debt, management and Fe<i'

erspU Reserve, policies: also -can ..be
*

Telephone

ex^<^ed^td;be of..Iwreirestriife;

HAnover
2-9300

tive^nature.: than at, presents with
/

resultant

money

tightening, effects

markets

the

other

: ;

•

on.

tfte

;

hand, should the

expected setback drubusiness. ac-

top BROADWAY,. NEW YORK 5
,Telephone

REctor; 2-7760-

; : v

J*G White
-

•

Company

n^sy..™

Teletype f/f

INCORPORATED

r;• '^ "v

37 wall street

•

;NY 1-1815

*;■ new york &

-v;Teletypes

NT 1-941 & NY 1-945

;

States, and for a unicameral legis¬
lature, having power to override
a
gubernatorial
veto,
to
hold
legislative authority. Under' the ;
the new Cabinet Officer all health,
proposed legislation the Federal
social security arid - educational Security
Administration
would.
functions of the Government. A appoint a medical officer to serve
as surgeon general of the island,
similar proposal has been made
a dispatch from Washington from
in the House by Representative
the Associated Press stated on the
Oren Harris (D.-Ark.).
same day.
T*

market, where
many distinctly second and third
grade
bond issues
commanded
prices entirely unjustified on the

the war,

cause

distinction in terms of rate

cient

system with con¬
comitant pressure for investment.
these

was

of the best grade corporate
viees stated on Jan. 10, If passed,
credits and Governments; but fur¬
the legislation would put under
ther, it led to a policy of insuffi¬

banking

Representative.Robert A. Grant
(R.-Ind.) an Jan. & introduced A;
bill!'to give Guam, territoriar sta-%
tus, with provision for appoint¬

narrowing in the spread between Associated Press Washington adrates

creat¬

toward

funds in the

this, Security in the: Cabinet,

have seen, was not only a troduced in the Senate

would increase, and debt manage¬
ment and Federal Reserve policies

Guam Territory

Government

market. The natural result of

requirements
would
expenditures

diminish.

Proposed

bill,f sponsored

by Senators
J.
William Fulbright
(D.-Ark.)
ment securities
brought about a and Robert A. Taft
(R.-Ohio),
hunger on the part of the bankers
designed to establish a new De¬
to employ a larger share of their
partment of Health, Education and
funds
outside

•*'

„

467*

DIRECT PRIVATE, WIRE TO SILLS, 1MNTON fit CO., INC,. CHICAGO

iTHfeCOMHBRGIAl^

468
1

'p.

-wt>i

'V*''

-.V

•

■

TbursdayrJanuary^3»ll947
T v

ifif'.

>''•'*

~ ' W.*1{"></? '-•*''

W/§®' " »' • •'

V;^.^*

Business and Finance Speaks Alter the Turn of the Year
facturers

(Continued from page 466)
"Operation Crossroads," may well have hoped that it
radio's final portrayal of war.
That detonation,

which

roared

the

from

directions

all

well have been the thunder of

When

thinks

atomic energy,

he thinks

the atom to its vast possibilities for good

ing world trading

The

Lesson

Taught by

1946

He .can

;

radio ;and

Cognizant of the vital importance of employee rela¬

to all peoples that the

prove

tions in America's industrial life, Thermoid has recently

businessmen

pany at the

moment doesn't

CIO having

lost its't bargaining rights.' Conditions are
production records the last

real

challenge which no American—either
employee—can refuse to accept.

again

appointed

em¬

on a

solving of

many

friendly and cooperative basis, there will be

We enter the year 1947 with very brilliant
possibilities
for prosperity.
Last Summer financial experts became worried over
various threats to our well-being,

fident.

which
the

WILLIAM SCHMIDT, JR.
President,

Consolidated

Should he

hold the

have

may never

press

,'^the television

screen.

can

be unfolded

industries should experience un¬
demands for their services in 1947.
As
materials in short supply become more plentiful, pro¬
duction generally should move to¬
ward full capacity.
Modifications in

A third World War would shatter

will

man

end in
But this cataclysmic finale need not occur if
turn his mind, his heart and his soul toward

I Peace and
That, it

I the

activity

and

to me, is the lesson which 1946—the first

seems

years to come can

Thus, science in
play

everlasting attainment

demands

ward.

Hend of the
'

'^2%'.^ '•

credit

1 r
• ;
V;/. Business during the

come more

that, just
as

■

will be-'

year

cured

meet
i

the

President, Sidney Blumenthal

era

can

crease

which

consumer

undoubtedly

com¬

year.

"full

divisions.
indicate

period.
Now,

ample

evidence

textile

Frtderic E. Schluter

seller's to

a
changeover
buyer's market
will be accomplished this year. This
indicates that prices in general have
| reached their peak.
Some prices
may still go
up modestly at the
wholesale level. Yet more will come
a

line"

well

most

The depression of 1920-

Although -market
some

deterioration

may

sustained at
,

have

escaped

any

been comparatively light,

though sad

•

"managed

money" .with low* interest rates .which,
higher wages and increased taxes,; will1, in turn
mean higher costs for Life Insurance. ? Those who have
policies already will be wise enough to keep'them in
force, for it seems unlikely they will ever be able to
buy so cheaply again; their appreciation of this fact is
evidenced by the very low lapse rate that has prevailed
for the past three or four years.
with

trends

in. the

1946

was

the best year in volume of production of new
we have had since 1929.
This was due to

life insurance

the ever greater
the only way to

realization that life insurance is about
create an estate under modern condi¬
tions, the Understanding that more insurance is needed
to take care of higher living costs, the general prosper¬
ity of the people and their desire to save part of their
present high earnings for the future of their dependents:
their widow and orphans.
Some life insurance companies have already put in
effect

higher premiums necessitated by the higher cost

of doing business and the low

be three to

companies

putting this

are

1948, when the

new

interest rates, but

many

increase off until Jan.

system of figuring rates under the

so-called Guertin Laws becomes effective; therefore,

high level due to the fact that, similarly,
most of-the country's production
of cranes, shovels, hoists, tractors, and other heavy In¬

during the

This indicates that for many years'to come there will

and industrial and oil field products.,.
Total
passenger
automobile and

majority of the total, which

after World War I,

incurred.

merchandised.

The demand for new industrial ;machinery. should be

business

in 1947.
recession after

a prosperous year

some

The cost of carrying on the war was terrific and it is
predicted that it will take 100 years to pay off the debt

five years off.

the

industry that

from

been

manpower have
and grievous.
;

position of certainmanufacturing
fields, Thermoid contemplates a con¬
tinuing demand both for replace¬
ment parts in the automotive field

form the

resistance.
is

look for

has

material damage to our own country and our losses in

There

may

quickly following the First World War was very
short and then came very great prosperity for a long

amazingly well through the war
proximity to prewar totals. Ad¬
average ages for all motor vehicles, with in¬
creased rates of wear for all automotive replacement
parts, has had the effect of trebling the demand for
Thermoid's products in this field. No substantial rever¬
sal in this trend can be expected until postwar vehicles

invite

high, but there is strong evidence of

sion in the latter part of 1947.

vanced

still

wars, but I suppose the recession after World War I is
the only one that might be a pattern for a short reces¬

truck populations held

and selling prices and

would

busy

and start 1947 in close

only by a new surge
increases which would in¬

costs

industries face

Management also foresees an ever
.growing demand for the newly de¬
veloped
andv engineered
products
which have been - developed by the

& Co.

prosperity

are

There

will be j continued during 1947, and will pass a
long planned milestone in the completion of a major
factory in Utah. The replacement
customer demand which Thermoid
expects to face in 1947 is an ex¬
panded one for quality products and

■

be reversed

of wage

Prices

years

confident that the business outlook for 1947 is
bright. As we gain more and more freedom from war¬
time controls and restrictions, the
prospect for an era of

employers and employees co¬
operate to injure the high productivity which is essential. This trend

few

intense efforts to furnish the

our

Thermoid's expansion program during the past eleven

•

if both

caused by

planes* the ships, the ammunition, the food, and other supplies that would end the war quickly. V
• 1
1

F. E. SCHLUTER

strides towards that

extra pay

President, Thermoid Company

:g unprecedented prosperity becomes
I more favorable. 1947 can make great

"take
a

big overtime

company's research and engineering
divisions for the original equipment
■

thoroughly.

1921

Another will probably continue.

expanded needs of American

The electric and gas

Francis P. Sears

bosses

Wages are at the highest rate in history and
home" pay is higher than at any time except for
months during the war when there was

•

the

asm&m

labor

encouraged

well-being by recklessly calling, strikes, and

munities.

depressions are always accompanied
by heavy unemployment, and it does
John A. Schoonover
BL,**,.
not seem apparent at the moment
that anyone would have difficulty in obtaining a job if
that person was at all capable or conscientious. ^
We will see a progressive increase in the number of
f,ij business failures, and as a consequence banks will have
r,
to be more careful in their scrutiny of credits.
••.
4
! I do not look for any perceptible overall change-in
v<
deposits in banks during the current year although the
! shifting of deposits from one part of the
coU'ntry' to

H. H. SCHELL

reckless

I do not look for any depressions
for several years, because important

several

actually

our

;

„

were

Govern¬

I believe union labor leaders understand this

ready to meet the greater demands for service
they develop.
*

future.

Deal

feel

to spend are not buy¬
ing gopds of inferior quality and will

critical

winter

New

needed for construction purposes and adequate
earnings
must | be allowed if the additional capital is to be se¬

the

gradual decrease in cost of most commodities; this
will result in good net earnings for all.
I feel that union labor leaders will not
try to destroy

have money

W-

systems

equipment, I have no doubt
in the past, the electric and gas industries

industry with
mining for nearly

industries, operating expenses have risen
because of higher labor costs and material prices.
This
development may. force utilities to apply for rate in¬
creases ^because
a
great deal of new, money will be

competitive. It is already

distribution

As in other

definitely apparent that buyers who

probably. be

are

will be

by the

may,

be paying 1%%

year,

essary

that, generally, interest rates will continue low
except in the yery lowest brackets *
and in the v short term ^category. In
other words, I expect that the companies which are now paying 1%%"
term

and

Public

by the
New Deal to make impossible demands.
But the overwhelming victory of conservative forces'
in the • November elections has changed the
picture
essentially, for the new Congress will insist on protect¬
ing the people against strikes in essential industries and

gas.

service

the

coal

were

being enlarged and expanded.
Although some difficulties are be¬
ing encountered in obtaining nec¬

William Schmidt, Jr.

have not looked for anything particularly difficult
in the banking business during the ensuing year, and I

short

for

soft

weeks

Thus,

are

for

use

some

too far in legislation
unfairly favoring labor against in¬
dustry upon whose prosperity work¬
ers
depend
for
their
livelihood.

avail¬

greater

the

terrifying;

expand,

made

market

and

ment had gone

going for¬
Production capacity is being

increased

President, The Idaho First National Bank

•

con¬

be built,
of electric and

means

the

those in

stoppage

three

can

such

the

Preparations to meet these greater

JOHN A. SCHOONOVER

believe

field.

larger supply

electricity and

Earth, Good

Will Toward Men.".

that

gas appliances
able. All this

and

all-powerful part in

"Peace

1947

housing facilities

all

expanded
With these

developments, industries
more

evidenced
in

stocks

Utilities in Pittsburgh, the Maritime
Service in New York and worst of

should result in

struction

of science for the benefit of civilization.

postwar year—has taught.

\f in the
I

use

restrictions

governmental

{£; the picture; the drama of civilization would

;| tragedy.

istence

The electric and gas

for war he would not survive to be-

beauty of the world that

bonds,

The strikes in indus¬
tries essential to people's actual ex¬

precedented

second chance again!

recession

commodities.

Company of Baltimore

| regain control; he

strongly

was

great

price

Electric Light and Power

Gas

President, The Columbian National Life Insurance Co.

is present today awaiting only the green
light. Labor-management team work will be the signal
tfd'go. This teamwork will spell higher productipn with
lower costs and the resultant higher standard of living.
That is the American way.
That is why I am con¬

the push-buttons that give War

director who,

deal with any union, the

FRANCIS P. SEARS

prosperity

Peace the right of way on the international highways.
If he ignores Peace and presses for War, he will never

factory personnel relations

most harmonious with peak
few months;
"■ * ■
:

of our labor dif¬
When American labor and management are

ficulties. '

Man's fate, his destiny and that of civilization are in
his hand which grips the clutch of science and in his

opportunity to

1947 should see the

planes with television eyes focused on great cities as
targets of destruction. Or he can use radio, radar, tele¬
vision and atomic-energy for peacetime pursuits in com¬
merce,
industry and home-life that will contribute
f greatly to "One World" in which people everywhere
I may live together in understanding, happiness and
friendship.
-

| fingertips which rest

will

American

hereafter will report directly to the President. The com¬

ployer

•

before.

This is

use

the

scale far greater than that which

on a

known

ever

seize

rockets and bombs loaded with atomic

guide

American system of free private competitive enterprise
does offer the best basis for world peace and prosperity.

in peacetime
,

Science is at man's command!
radar

have endowed.

was

of it in

he does television.

discharge hose, hydraulic and steam hose, as well
welding hose have a similar outlook. Renewed oil
field drilling and development will create a greater de¬
mand for all Thermoid's oil field products. Demand for
draw works, pumps and winches has increased themendously due to the continuous use the present units

This reaction must change—he must relate

war.

and

The field of foreign trade offers not only unparalleled
opportunity for broadening our economy but it also of¬
fers an ideal opportunity to lay the groundwork for last¬
ing peace and international well-being through resum¬

Pacific, may

radioactive storm that

has passed—if man so chooses.
When man thinks of television, he thinks of it as an
instrument of peace, although it can be used in war.

terms of

should reap their benefit through expanding

volume.

was

sort of last call for current

very

war years

rates, 1947 is likely to

active year for life insurance companies,

even

•

down due to
.

moupting, production..

dustrial

Herbert

Schell

only find steadily decreasing prices but she will
also find better
quality textiles. In spite of this, manu-

consumed for military purposes,
leaving the home market in need of replacement equip¬
ment. This has also necessitated greater use of replace-,
ment parts for all existing equipment. This practice will

demand for transmission and conveyor belting is thus

increasing due to
new
.

equipment.

though there

were

There'is a heavy; of necessity- hqve to be continued because heavy-industry
the industry which 1 is booked to
for many months to come. The

pentup demand in some sections of
will reflect itself in firmer
prices. On the whole I feel
confident that the housewife
buying in the retail market
will not

machinery

the long

periods needed to obtain
..

may

be a small recession in volume of

business in the latter

■1946.!,
h

- -

part of the year

,}| v,

;

as compared
,

•

new

with

„

,>Hut following the pattern after World War I, I expect,?,
that any such recession will be short and that we may

expect several years of great activity and prosperity in
this most helpful industry.

Industrial hose such as various types' of oil suction

-t-

<7.

(Continued on page

£ !t? $

•-

•"'*} ISGSBi.

sets; and other
Surely a cosmic

Observations
misconceptions of causes and ernment being completely vitiated
effects, similar to his consumer- oy the Administration's concur¬
credit philosophy. For example, rent easy money policy; entailed
he says the Board should "curb in¬ in the huge expansion of excess
flationary developments brought reserves, obliteration of interest
about by speculative activity in rates, huge deposit creation and
the stock markets." But also that: monetization of the public debt.
into

now appears that inflation has
The margin rises of February and
largely run its course, assuming July, 1945 were followed by ad¬
that fiscal, labor and management vances in the stock average of 33
policies, such as I have indicated, and 25% respectively; and even
are
pursued. Accordingly some the complete elimination of mar¬
readjustment in margin require¬ gins in January 1946 did not end

"it

ments is

appropriate at this time'."
Jn any event Mr. Eccles' basic con¬
cept of inflation vis-a-vis stock
prices seems invalid. His aim to
regulate the degree of inflation by
"managing" stock prices is merely
ilike trying to change the tempera¬
ture by tampering with the ther¬
mometer.

such

that

only

logic

possible defense of
that can be made is

market may psycho¬
logically make people feel more
inflation-spirited, and that hence
the
government should
try
to
change such psychology when it
thinks the time is ripe. But even
this relatively minor policy has
not worked in past practice (which
Will be demonstrated hereinafter).
As a matter of fact, far from
adding to inflation in the general
economy, a rise on the level of
stock prices and in the purchase
of new securities, actually relieves
the inflationary consumption-pres¬
sure
on the supply
of goods, by
syphoning off the dangerous pur¬
chasing power into the purchase
of stock certificates (the proceeds
of which go mainly into capital
expenditures and not into con¬
sumption until much later).
But the greatest objection to the
Board's policy in seeking securi¬
bull

ties and instalment credit manage¬

ment, is because it is so selective
-~not only as far as the general
economy

In its

is concerned, but even
particular spheres.

own

trhe Necessary Vast Concomitants

similar matters."

of economic

array

the bull market.

the

here is that there may

assuredly

other

must be continued for

"selectivity" in the Board's

another.

regulations 'which
one

management effort abortive.

and

trols, provided a good showing
of their necessity is made by those
this one branch of the who advocate exemption.
This
government
in
its
"selective" throws the burden of proof in each
action here, is undermining other situation
on the executive agency
government aims. For in cutting responsible. Fairly
prompt action
off families, who do not possess
may be expected.
the higher savings and incomes
The Senate measure calls for
sufficient to meet the raised pay¬
ment

requirements, it is lowering

the standard of living of the un¬

direct

contra¬

Many

consumers

add

can

each

standing

Senate

committee

the

installment

that

over

which the

Board

examine

all

ance

segment

is seeking

vidual regulation.

full

and

sustairfhd

nomic conditions also would shut
them off from such goods.

creases

industrial

Quite

indeed

sizable sine

Francis Kernan,

White, Weld St

Kuhn,

Corporation,

Vice-

First

Boston

cor¬

Opens

Sid Harvey, Inc.

Several Reserve Board officials

VALLEY STREAM,. N.

Y.—Sid

the

spending.

Omnibus

The Problem A Broad One
As

the

case

margins,

Eccles realizes that other elements

installment

spending

are

involved in trying to manage the

business

cycle.

explaining to
how
it
determine and

Philbin

Congressman
would expect

legislation may bring
Regulation W, if special
legislation or action by the Fed¬
an

the consumer field also Chairman

besides

end to

eral Reserve Board does not.

addition

bills

which

Dealers In

are

appearing in House and Senate to
eliminate this
control, attention
should be paid to House Resolu¬
tion 56 (Rep. Earl Lewis, Ohio, R.)
and Senate Resolution 35 (Senator

Over -The - Counter
Servicing

regulations of credit
Wiley, Nebraska, R.). The Lewis
terms, the Board said it would take
bill, endorsed by House leadership,
into account a number of factors,
calls for prompt end of all regu¬
its

vary

"which would include the general
level of economic

Harvey, Inc. is engaging in the
securities business from offices at
104 East Mineola Avenue.

port to the continuance of Regula¬

activity; the dis¬

Dealers

lations and controls derived from

Securities

from

the grants of power to the execu¬
tive, and contained in the Limited
ables and other things; the price
and Unlimited Emergency procla¬
level and its movement; the vol¬
mations, and the State of War
ume of credit and the rate and di¬
excepts for
those
Declaration;
rection of movement in that vol- promulgated by the War and Navy

tribution of activity between dur¬

ume; public

holdings of liquid as-'Departments

affecting

and

Coast
to

BLAIR F. CLAYBAUGH & GO.

Coast

the

Member Philadelphia

Tele. NY 1-2177

Tel. HAnover 2-706i

LUCKHURST & CO.

Harrisburg

Syracuse
(ii'

Oujh

Pittsburgh

Beach

Miami

YORK 5, N, Yj;

52 WALL STREET, NEW

are

Stock Exchange
Ass'n

York Security Dealers

New

Member

System

Private Wire

;C$$P I

'Trading Markets

pro¬

40 EXCHANGE PLACE

NEW YORK 5, N. Y.

Telephone HAnover 2-0270N

Teletype NY 1-1825-6

720 MAIN STREET

—

HARTFORD 3. CONN.

OVER

qua non

the

were

Situation

cessation—of

perhaps-inflationary

wage

accompany

officers

1 low i n g

Co., Chairman; R. Parker

tion W that it is favored by "lead¬
ing economists in the country." As

The Present Legislative

—rather than

prices, and the downward adjust¬
ment of prices that are now out of
line."

elected!

The Judiciary

mate interests be sacrificed to the

business-

peace,

further

the

have openly stated as a chief sup¬

principles
of
overall
cycle experimentation?

the
in¬
that bring about increased

avoidance

As¬

National

sociation of Securities Dealers, Inc.

the

Should
legiti¬

pot-shots at relatively small tar¬
gets, will only result in a transfer

duction depending on an extended

•period

meeting of the •District No*

ment only

their subjective individual

Hence,

government expenditures
a budgetary surplus which can
toe used to reduce further the pub¬
lic debt held by the banking sys¬
.

13 Committee of the

elimination of each indi¬

all

tem

THE

COUNTER

SECURITIES

small

element in the vast economic pic¬
constituted by stock market
limitation!
And the lack

ture

credit

MUNICIPAL BONDS

of importance and "selectivity" of
the latter are accentuated further

toy the fact that only listed secur¬
ities
the

are

FRANK C. MOORE & CO.

thereunder—

included

over-thecounter and other issues being left
thus unregulated.
And of course
large

amount

speculation

LEBEINTHAL& CO.
135

BROADWAY, NEWYORK 6,N.Y.

•

Telephone WHITEHALL 3-9784-5-6 \

REctor 2-1737

"inflation" in other capital assets,
as real estate* are simultane¬

such

ously

left

York 4, N. Y.

42 Broadway, New

MUNICIPAL

v ^

Teletype NY 1-2628

credit-induced

and

DS3
IN'ODD'IOTS

untrammeled.

IMtNYHALkCOL

The best proof of the ineffect¬
iveness of restriction applied in

this limited specific field, is found
in the record of actual past per¬
formance.

For

example, although

FREE

in March of 1929, the call money
rate was boosted to its all-time

high of 20%, and the renewal rate
to 15%; nevertheless, the fantastic
stock prices of the period became
even

reach

fantastic

their

months later.

peak

and

until

did

1929

did not

The 22%

move

of this
-

one arm;

of the-gov-

Members New York Securities

•

■

Graphic Picture of American Business
And Financial

age

v 4 <-

;

ESTABLISHED J93S

::->7'.M^mbers^ NewjYork

16 Court St., B'klyn 2, N.

•

;

Dealers Association

■■■

■■

■

complete facilities for intelligent

PJ.'

service to

•

broker-

';;;^

•

Institutions, Banks and Brokers.

Cycles

Security Adjustment Corporation
/

i'vrv*:.-:

We have

•

rise in margins instituted in Janu¬

ary,
1936, was followed: by7 18
months oL rising
markets; :r;ihe

Young, Aal & Golkin

REQUEST

Including All Wars from 1775 to 1947

not

seven

So much for the in¬

stop^ the bull market.

"Business Booms & Depressions"

Similarly in the case
margins; their general rise

from 20 to 30%
;

CHART

terest rate!

Elects New Officers

wartime

Committee then is directed to

their

in the
field of securities, such restrictive
to retain control.

pursued." These he specifies as:
"combining continued high levels

inventory of durable equip¬
Chairman;
Frank
L.
Sheffey,
during periods of busi¬ relate these recommendations and
Executive Secretary; George E*
ness-cycle upswing. The present report an overall bill by March 15.
philosophy indicated by the gov¬ Here, the Senate1 would itself Rieber, Assistant Secretary.
ernment would prevent these rel¬
evaluate, through its committee
District
No.
13
covers
Newappearing in this issue of the atively
underprivileged
people structure, the worth of each war
York, New Jersey and Connecti¬
"Chronicle": charge-account cred¬ from
This resolution has top
buying at those times, when control.
it, which is not controlled, is out¬ they can afford it; and at the leadership agreement, it is under¬ cut.
standing in an amount 10 times cycle's downswing, general eco¬ stood.
apply in the consumer field. As is
pointed out in the article by Mr.
William J. Cheyney, "Installment
Credit Should Be Decontrolled,"

of taxation with prudent economy
in

NASD District No. 13

controls within its province and to
recommend by Feb, 15 to the Ju-.
diciary Committee the continu¬

fiscal, labor and management pol¬
I have indicated,

the topic!

"Selective" Discrimination

ending of inflation "assumes that
as

Forum

Then too,

As Mr. Eccles himself states, the

icies, such

Congressional schedule should in¬
clude
an
extended
Economic

is prepared to exempt such con¬

this

regulation
presumably

the

and

Can

will, also marshall leading econ¬
on their side, perhaps the

The House leadership
reason

^opponents of

469

omists

reason

will listen to

general desires for social justice.

gestures of credit control likewise

special

be certain

would render the entire grandiose

vention of the OP A aims and of its

Such

Armies of Occupation. The theory

any of which, or the entry therein
of
som e
other
imponderable,

derprivileged—in

"Selectivity'^ of Controls

phenomena; the misrappraisal of

(Continued from page 393)

The

FINANCIAL CHRONICLE
&

THE COMMERCIAL

Number 4562

,Volume 165

Security Dealers

Y.hi

I-

Assoct&ttoitf

|;"

V"'-

Tel.—TRiangle 5-5054

115 Broadway, New

TelephoneW0rth2-6205

York 6, N. Yi

Bell TeletypeNY 14658

•

470

THE COMMERCIAL & FINANCIAL CHRONICLE

23,4947

Thursday, January

Business and Finance Speaks After the Turn of the
(Continued from page 468)

•

signed and tooled

We, of course, can not speak for the other members
of the fountain pen and mechanical
pencil industry, but,

provide equality under the law. The alternative to a
free society is not pleasant to contemplate: it consists
of a managed economy under an authoritarian state with
dictatorship and inflexible bureaucracy succeeding the
society of free people that made America synonymous

from all

with

it has

E. L. SHEA

the important customers of North
American's operating companies indicates a continuing
survey

bighlevel

among

waukee

good year, and the
equally good year
in 1947.
The public demand for quality fountain pens,
mechanical pencils, ball point writing instruments, desk
sets, and writing fluid, although more discerning, should
remain at a high level for the greater part of the cur¬
rent year.
The year 1947 should also bring with it a
return of healthy competition which will bring the foun¬

Louis,"

and. St.

-p.

With the supply of materials in¬
creasing and with labor and man¬

agement

showing a desire to settle
hour problems construc¬
look for the release of
brakes which have retarded

and

wage

tively,

tain pen

many

the nation's industrial output.

utility operating companies
anticipate further expansion in the

electricity requirements of residen¬
tial, commercial and industrial users.
The

continued

aim

these

com¬

Photo bt
Blank b Stolier

Edward

L. Shea

.HERBERT E. SMITH
President, United States Rubber Company

•

;

Although the rubber industry produced a record
peacetime volume of goods in 1946 and is expected to
repeat this performance, or better it, in 1947, the pent-up
demand for rubber products is such
■

ythat ^shortages

will

continue

for

months.

many

Indications

are

that final sales fig¬

will

show that the industry in
produced goods valued at $2.3
billion, which was more than double
ures

industry back to the sound basis from which it

forced to

1946

the

volume

record

out.

HURLBUT W. SMITffi

year

President, L. C.

It is estimated that sales in 1947

will be $2.3 to $2.5 billion.
■pi The demand for tires is still greater
than

during the second half supply is

expected to be

adequate.

Smith

expected

will

construction
in

completed and

before Summer

use

that, bar-

£|

With the

obtaining freight

building of

during .the

which have

instances * due to

many

passenger

equipment completely

period,

war

deliveries.

car

passenger

pur¬

car

during the past two years have exceeded those

any

similar period in the past 20
passenger

and more

years,

equipment is again; coming into j

car

anticipated

that

passenger' equipment»

time to

some

come.

locomotive builders' shops is

has been

and coated fabrics
supply for many months. The
supply of golf balls and bathing caps will remain tight,
although these articles will, appear in much larger num¬
bers than in 1946. Lastex yarn will be short in the first
part of the year, but will be more plentiful in the latter
half.
Industrial products such as belting and hose, for

•

■

Smith-Corona

typewriters,

freight

developed

riding at

indicatef j?Q|feribut

suppliers of
trucks, clasp brakes for passenger cars; loco¬
couplers, springs, and other com¬

WALTER W.

They have recently

freight'^cay truck designed for safe.,
and

any

easy

all" operating speeds, and wide

ac-

ceptance of this truck is already manifest.

w. Smith

1947;

The

will enter the

company

1947 with

year

large

backlog of tonnage of all of its railroad products, and
has every hope that operations

-supply, probably will be

the upgrade.

large

are

ponent parts of railroad equipment.

adding

satisfactory sales during

very

car

continuing

Foundries

motives and tenders,

machines, duplicating machines and*
typewriter supplies, which

Steel

American
;

letup in the demand for

short all year.

SMITH

rate

during the

will continue at

high

year.

President, First National Bank in St. Louis

t in 1947, for the first time in four years, the industry
will use more natural rubber than synthetic. Consump¬

The

tion of natural is.expected to be about 51% of the total.
This compares with 22% in 194-3.

been

consumption of rubber by the United States in
980,000 tons,'of which 502,000 tons
will be natural and 478,000 tons various kinds of
syn¬
1947 is estimated at

REUBEN E. SOMMER

problem

facing the country in 1947 is
equilibrium. Our progress has
halted by the maladjustments produced by the war,
and the stability of our economy is
major

restoration

V Total

economic

President & General Manager, Keystone Steel & Wire Co.

believe*that

there exists in this

country today a tremendous

poten¬

threatened by the abuse of privileges
granted to labor during the prewar

Consumption in this country in 1946 was
million tons.
•
The greater part of the 1947 tonnage will go into tires,
which will be manufactured in almost as great quanti¬
ties as in 1946, when output reached record
proportions.
In that year, 88 million units, of which 66 million were
passenger car tires, were expected to be produced. The

and

decade and further extended

thetic rubber.

prevent prosperity for several years

tial demand

during
denying the
need for labor reform during
the
early 1930's, but the attempt to ac¬
complish this through the grant of
special privileges without concomi¬

over one

retarded

time required in

for

be expected from the car builders. This

acceptance of diesel power, extensive purchases of this

pany's history. Up to this time there

continue to exceed

forecast is for

been

can

should stimulate railroad purchases

in turn

type of equipment are to be made and activity in the '

the highest of any year in the com-

i;f The demand for rubber clothing

1947

productivity

ruptions, 1947 production should be

Herbert E. Smith

canvas, is being produced in
increasingly large
quantities but it will be some months before depleted
retail stocks are, brought up to normal levels.

slightly

Similarly, in the locomotive field, with-more general

and

which demand still far exceeds

The need for new freight car equipment is generally
recognized from the standpoint of modernization in coping with the more stringent present day operations, and
also in replacing the many thousands of cars that have
already served their usefulness. Nearly one-third of all
freight car equipment exceeds an age of 25 years, which'
has often been considered as the length of their normal •
life.
If the present railroad and private car inventory
of approximately 2,000,000 freight cars is to be main¬
tained, purchases of approximately 7.0,000 freight cars .
should be made annually.
During the past year, due
largely to interruptions caused by labor disturbances
at the plants of the builders, and the inability of such
builders to obtain many needed materials, the figures
fell far short of this objective. The backlog of cars to be
built has almost doubled from a year ago with the gen¬
eral tendency to better availability of steel and other
materials, and with the outlook for more favorable labor
relations there is every reason to believe that increased

activity, will continue for

stabilized econ¬

a more

ring unforeseen manufacturing inter- f,

| Rubber footwear, both waterproof

will

evidence.

under

toward

in industry, the American Steel Foundries is taking
optimistic viewpoint of operations for the year 1947.,

modern

additional
now

With the general trend
omy

chases

Corona Typewriters Inc.

that

manufacturing facilities

the

supply and dealers find it
impossible to build up inventories.
This situation will probably continue
during the first 3 to 6 months of 1947
but

GEORGE H. SNYDER
Vice-President, American Steel Foundries

curtailed

1940, the previous
of wholly
peacetime

liberty and opportunity for all.

depart during the war.
.There are, quite naturally, many factors that have a
bearing on the industrial outlook for 1947.
This com¬
pany, for instance, is faced with a shortage of skilled
labor which, if not alleviated, will seriously limit our
output. The lack of building materials and the high cost
of construction will delay the desired and needed ex¬
pansion and modernization of our present facilities.
These problems, we assume, are common to the industry.
Moreover, strikes in manufacturers' plants or in the
plants of their suppliers or in industry generally will
also have an important effect on production and earn¬
ings. Finally, it must be borne in mind that a large vol¬
ume of business in 1947 will not necessarily produce a
fair rate of profit if the cost of labor, raw materials, fin¬
ished parts, and the like continues to rise.
The extent to which the fountain pen and mechanical
pencil industry will make in 1947 its contribution to the
national economy and to the welfare and prosperity of
its own employees and
stockKoidersp^I^^^^i^r-flxial
analysis, depend upon the productiyi^^^j^^r^piOii::
the farsightedness of management, and upon a sound tax
and legislative program, both State and national.-

was

Our

panies and the industry is to provide
first-class
service
at
low
prices,
keeping electricity the most valu¬
able, yet cheapest, item in the family
budget.

indications, they have had
industry should have

leaders in the

productivity for 1947^h; the great industrial
radiating from Cleveland, Mil- '<
: 1 '

areas

up for over a year ago, is better than
been, and we plan to introduce other new

ever

and fine products to the trade.

President, The North American Company
A

Year

the

war.

There

tant

million for passenger cars.

goods and services,
only thing that will

will be

come

failure to take

our

the opportunity that
presents itself.
When I say '"our,"
I mean the Government, the work¬
of

and management.
of 1946 should help

ers,

single group a huge reservoir of
This power not only has been

the

that

advantage

responsibility has merely given

total of 80 million units, with 62

for

The mistakes
us

power.

lieve

corrupted

better

use

that

1946.

1947

sense

will

in 1947.

I be¬

better

than

*'•

by abuses, but is inher¬
ently incapable of correcting
the
evils which were the excuse for its

C. R. SHEAFFER

President, W. A. Sheaffer Pen Co.

During the war, the activities of €he W. A. Sheaffer
Pen Co. were directed
primarily toward the production
of direct war materials for the War and

ments—much

other manufacturer in the

than

Walter

Navy Depart¬

fields^he-

whether

ably,
we

and what limited production
had was distributed

union.

chiefly to

with

result of

our

preoccupation

work, the period of re¬
following V-J Day seri¬
ously impeded our return to peace¬
time production until rather late in
1946.
Although this delayed start
made it impossible for us even to
begin to fulfill our dealers' demands,
war

production in the latter part of 1946
stepped up sufficiently to per¬
to forecast

reasonably good
year ending Feb. 28. 1947.
-v The fiscal year 1947 should be a
good

level.

incidentally,
The

quality of

much
our

higher

corporate

trust

by a labor

that J thepresent clash 'ofAsocial sand, economic
resulting in unprecedented work stoppages :cannot
permitted to continue. The climax reached during
the coal and Pittsburgh power strikes has definitely
shown the; American people that we must create a more
equitable balance between labor and v management if
collective bargaining and the system of competitive en¬
terprise are fto function (effectively1; This requires, not
punitive legislation, but sbch; amendments^wiexteting
laws as will produce a more balanced relationship/be¬

forces

ruinous economic
C. R. Sheaffer

one

for

us.

have every reason to believe that
during this year we
will be able to
satisfy the requirements of our dealers.
Our production is fast
approaching the desired level,

which,

tween labor and management and

was

conversion

mit

wielded

Thejreconversiori period;has erystsdized'oub de¬

cision

the Armed Services.

Smith

whole now finds itself the victim of
this too-liberal granting of privilege. Public opinion is
reacting, as at has in the past; and is beginning e forcible
demonstrating of its opposition -to monopoly power

any

production of our fountain pens and
mechanical pencils fell off consider¬

original grant. Privilege and monop¬
oly power are invariably used for
selfish purposes and society as a

than the
merchandise which

prewar
we

de¬

strife.

protect society from

Both labor and ^management

must

assume an equal obligation to honestly bargain
collectively. ■ Each must be given the same rights *of free
speech, and neither must be permitted, either directly or

indirectly, to engage in unfair practices, Or^wercjbn uto;
achieve

an
objective.
We have reached the turning
point: labor and industrial management must together
find peaceful means to negotiate their differences, or
both will be; destroyed.democracy, to function, must

Our

own

company,

which

makes steel and wire and wire prod- i

ucts, has demands far in

to produce, so we
to the future with confidence.

J. P.
<

;

excess

ability

our

R. E. Sommer

look,

SPANG, JR.

President, Gillette Safety- Razor 'Company

The current problems. of Gillette
Safety Razor Company and its sub- 4
sidiaries throughout the world arise
fromthe fact that its' factories, are'
unable to produce enough Gillette

products to supply the demand. This i
even though produc-v

condition exists
tion in all

plants, except in Germany;

has been materially increased*; Irom
prewar levels. In most markets, in- ;

eluding

the

tinues vto

United

be^

goods to the trade.
With

States,

con¬

necessak^^to *allocate *
•}

world-wide

* ?

" 4

;

shortage

Ty
of

Gillette

goods, the demand, seems
likely to tax our production facilities
for the next twelve months.
What I have said
Gillette.
razor

There; is

blades,

relate? only to
no

such,

shortage, of
,

(Continued on page 472)

Spang,

Jr.

Volume 165

Number 4562

[THE COMMERCIAL' & FINANCIAL* CHRONICLE}
much

Credit Should Be Decontrolled
(Continued from page 395)
2.

$100 billion
consumer
economy of today as
contrasted to the $60 billion

prewar economy;
3. As contrasted to

incomes

prewar

con¬

considerably

less

than now and hence less
able to carry total indebtedness
than they can

today;

4. As

compared

present
industrial output capacity ! for
consumers' durable production,
far in excess of prewar totals.

;
,

Another

is that

a good many
out,; blithe waf
period in what they thought was
{liquid condition only to find that
[ they
mistakenly j had put too

retailers

came

; much of their cash assets in "fixed

investments,"
mortgages,

paying
off
first
investing in other

'ventures than their retail
tion.

opera¬

Thus the Federal Reserve Sys¬
tem points with some
accuracy

retailers who

some

beg for con¬
of the govern¬

tinued protection

ment in instalment credit restric¬

tions

enable* them

greater

sales

finance

less

with

liquid
of im¬

assets; to bridge the gap
paired working capital.

Will Switch, Not Stop, Spending
It is the

public, particularly the
working people, , who are to pay

•

for this unfortunate situation.

course, the public probably will
not stand for it long.
It does not

employment

ily on
easily.

that

it,

til

other

the

the credit

products

and

of the

Com¬

classes

have

been

^"Regulation,"

the

inspection have in¬
pointedly as to whether

quired
the

and

course

retailers

these

credit

curbs.

public

other,

stretching things

ex¬

his

It narrows
makes it sub¬
servient to a vague "welfare of
the economy," makes the economy
loom
more
important than the
people, plays directly into the
hands of those who already have
well in hand and fully enjoy their
share of American prosperity,

are

opposite 'fdirection.

tech¬

v. *

■

•;! M i(J

[

Selective Controls Have Complex
Implications
The Federal Reserve System in
dealing with consumer credit has
its finger on a much more compli¬
cated

economic mechanism

fittingly

group,

than

Emerson, Roche Admits

constructively

this

down

business

will suffer.

can

press

dealt with by, what it calls these
"selective"
controls—which
are
selective only to a
degree but

Dunn; Adds Branches

■

Federal

nied

opportunity to buy one, until
neighbor

drawn

from

Reserve

has
the

market

System

for

this

finally

the

and

sees

with¬

wise

buying help of the
to

group

sustain

falling

markets.

tries

which

Dec.

now

find

electrical
lar

very

that

able

their floors, jewelry and

ready

jewelry

little

publicized

development
years

but

unfor¬

through -the

has been-the

use

persuade retailers to -say

they

favor

continuation

Regulation W. The System's

em¬

anism

nibble

business

wear

has

a
or

store intending to buy

perhaps

dress

suit,

resident manager in San Antomd,
with offices in the South Texas

artificial mech¬

"controlled

Building.

economy," the true basis philos¬
ophy of government as it was
taught to most of us, is being
shelved. It has-always been our
philosophy here that
ernment

for the
For

refrigerators and simi¬

dropped noticeably. The housewife

employees of the Reserve Sys¬

that

still

products have become avail¬

entering

themselves

Reserve

large stores report

some

Retailers

tunate

"decontrolled"

Federal

for the sake of

both

economy

exist

generations

now

Emil

have worked steadily

Williams,

toward

pany

achieving and enjoying

standard

living of

formerly

appointed Vice-President

which

ser,

have boasted in this country.

of the

and Trust Com¬

Chemical Bank

those

of New York. Fred W. Rues-

Manager of the municipal de¬

partment, has been appointed an
Assistant Vice-President.

Regulation W points back in the

with perhaps $80 in her pocket, is

likely to lay out her entire cash
fund for the purchase of a refrig¬
erator

she

The result?

finds

She

available.

UNLISTED

"passes up" the

jewelry and clothing departments.
So

long

major products

very

Railroad, Public Utility and Industrial
SECURITIES

services.

pass

little residue in the form of "con¬
sumers' plant and

equipment,"

are

interested in block offerings

securities either for

WELLINGTON

one

of the most important segments of
the ordinary family's savings.

our

through

own

our

of listed and unlisted

account or for distribution

organization.

4$^ FUND

Discrimination Against Low

ESTABLISHED

1914

Income Group
,

A few weeks ago an official of
the Reserve System said that the
Reserve Governors in retaining

Ithe present regulation
ment

purchases

Boenning & Co.
MEMBERS PHILADELPHIA

instal¬

MEMBERS NEW YORK

INCORPORATED

durables, al¬
lowing all other consumer credit
■purchases to go scott-free of con¬

trol,

of the most

one

STOCK EXCHANGE

EXCHANGE

(ASSOCIATE)

1606 Walnut Street
PHILADELPHIA 3, PA.

guided considerably by
the opinion of a half-dozen econ¬
omists whom he named.

CURB

1928

were

PEnnypacker

This was

surprising admis¬

Bell

System

5-8200

Morgan & Co.

New

Teletype

PH 30

York

Telephone

COrtlandt

7-1202

National Distributors

sions

we
have seen lately, one
which will lead the average man

to wonder

considerably.

At least

of these economists had writ¬

one

ten his

views

pamphlet for
;the Committee for Economic De¬
velopment. He said that the work¬

ing

family

should

REAL

ESTATE

TRUST

BUILDING

PHILADELPHIA 7

cash

restricted

Underwriters and Distributors

had purchased all
He said,,"The present

spare,

they want..

"regulations

instalment

credit

Public

Railroad, Public Utility, Industrial and Municipal

Utility—Railroad—Industrial

Security Issues

for the purchase of cpnsumers'

durable goods

(should) be re¬
production of
durable goods has reached a peak
.and has started to decline
The
moved

when

release

.....

SECURITIES

the

New Jersey and General Market
and Television Securities •

could provide a valu¬

Line Stocks

able stimulus to purchasing power

ary

that

check

forces."
the

.needs to

means

average

family

which

credit to obtain these

mac

h i;

n e s,

pawns to protect the

private

econ-

Equipment

Trust

Obligations

Public Utility Stocks
Underlying Railroad Bonds
Public Utility Bonds
Pennsylvania and General Market Municipal Bonds;

Equipment Trust Obligations

PHILADELPHIA 9, PA.

NEW YORK 5, N. Y.
120

123 S. Broad Street

Charles A. Taggart & Co.
Investment Securities

Teletype

*—

jPH 677

Dime: Building,

Allentown

KIngsley

Broadway

REctor

PEnnypacker 5-7330

2-6528

Bell System

Teletypes-—PH 296 & PH 297
N. Y.-Phila. Private Wires—REctor 2-6528 & 2-6529
"Semi-Annual Valuation of Railroad & Industrial Equipment Certificates

1500 Walnut Street, Philadelphia 2, Pa.

automobiles,

.watches,. etc.,: should be used

Maintaining Active Trading Positions in

Guaranteed & Leased Line Stocks
•

course

products like [refrigerators, washin g

Guaranteed and Leased

possible deflation¬

This

use

Municipal Bonds • Electronic

Bank and Insurance Stocks

•when it could be most beneficial
as

STROUD &
INCORPORATED

from buying durables until those
more fortunate economically, with

"Appraisal of City of Philadelphia Bonds," "The
5-1716

and "Pennsylvania

assistant Vice-President, has been

broadening the size of the group
the

Official Appointments

people.
several

[

Ghem. Bank Announces.

Gov¬

the

and

much under control. Executives of

Favoring the Position of
A

were

the

these, having
;been quickly consumed, will leave
years

the

::::0KL;■

sup¬

his

tem

from

little to expect a merchant to

W today, the working man who
hasn't large cash resources is de¬

ulation

•consumed

the

by the

nically decontrolled

going

sition of returning, war short prod¬
plied in full. Today the man with
ucts
because of a
paternalistic
cash or an open charge account
protective device continued in be¬
can buy not just one radio but six
half of these particular merchants.
if
he chooses, whereas by this
It is ironical that certain indus¬
philosophy, and under Regulation

past few

requring it will hot stop
the family from spending its in¬
come.
Hence it will not truly be
deflationary. It will merely cause
the family to switch its spending
to
less
durable,
more
quickly

been

wanted

controlled

true feelings about a
AUSTIN, TEX.—Emerson,
regulation
on
inquiry really jolt business and the public
from an inspector who is going far
beyond the limits of the Roche & Co., Capital National
over
his books. Washington has twelve major product groups now Bank Building, announces the ad¬
ated—that the Committee does not
denied sponsorship of this system¬ still "covered" by Regulation W. mission to partnership of James L,
feel that the average family should
atic door-to-dpor inquiry but it
So long as Washington contin¬ Dunn. Mr. Dunn, who was form¬
have to wait for "its share"; until
has gone on just the same and ues its philosophy that the masses erly proprietor of Dunn & Com¬
all
others have .been satisfied,
most certainly no
effective at¬ of Americans- can be soaked with pany in Austin, will be in charge
Yet the [recent publicity would
of Sales and Trading.
tempt has been made to stop it, .
seem to indicate that the Federal
impunity by -bureaucratic con¬
!/ The $ firm
While many retailers undoubt¬
has
also
opened
Reserve System is following this
trols, without danger of measur¬ branch offices in Dallas and San
edly find that Regulation W is a
point of view so obviously con¬
able kick-backs; so long as Wash¬ Antonio. Resident managers of the
good offset to inadequate work¬
trary to American economic-social
ing capital with the "cost of in¬ ington believes that the financial Dallas office in the Second Na¬
principles.
be
ventory" rising and with new im¬ economy is more important than tional Bank Building, will
People will not long endure a
E. M. Alsbury, Jr., Earl J. Sand¬
Federal policy based on the as¬ petus to accounts receivable, it is the people; so long as its policy
questionable whether this is a is to acknowledge that a segment erson, formerly sales manager of
sumption that certain classes are
consumer's problem, whether the of the people must be hurt, as Re¬ the firm, will be in charge of the
to be denied their part of the in¬
consumer should be saddled with
serve
Governors have acknowl¬ office in the Wilson Building iri
dustrial output of the nation un¬
a regulation preventing his
acqui¬ edged in the case of Regulation W, Dallas. Walter Gaetjens will be
It is to

The requirement of $80
payment on a $240 refrig¬
erator obviously is more than is
economically necessary. The reg¬
down

necessary

mittee for Economic Development
that this philosophy was repudi¬

meet

can

have

It would be

available to this fam¬

terms

Repudiation By CED

important thing is whether or not
the
major
consumers'
durable
are

ployees

States.

poorer

products

only

resources

by credit buying, to share in the
products we produce in the United

retailer down the

cash

levels, and not until then, should
the poorer families be; permitted,

call

street has suf¬

with

door to door in many sections of
have done their utmost and have ; the United States to
inspect: re¬
failed to sustain industrial output tailers' books of
account, under

make much difference to a house¬
wife or working man whether the
ficient working capital or not. The

that

this country;

those

our

confusing element in

the picture

when

and

sumer

omy

In the face of the

still

471

y..)

Bond of the Week'*

Corporate Legal List."

THE COMMERCIAL &

472

Business and Finance

the United States of minting the pre¬
one-quarter nickel and
the resumption by Canada of the issuance of pure nickel

ROBERT C. STANLEY

World

of Canadian nickel in

deliveries

•

Demand

for

nickel has

been

ex¬

sponding period last year.
In line with

improvement noted in
the general industrial situation nickel
operations have increased appreci¬
ably during the last half of the year.
Production of nickel by International
Nickel has recently risen consider¬
ably from the levels prevailing earl¬
ier this year.
Operations are now
running at about 75% of capacity,
which rate closely approximates that
prevailing during 1937.
.

.r.

Stanley

bringing them
world

market.

Nov. 25

United

International Nickel's

States, subsidiary

increased
its United States prices for nickel,
into line with those prevailing in the
Canadian and United Kingdom prices

remain unchanged.

The United States contract price for
99.9% electrolytic nickel from the Port Colborne re¬
finery was placed at 350 per pound, the published spot
price previously, obtaining. The new prices include the
existing 2y20 United States import duty. The price to
general contiact customers previously was 31V20 per
pound.
;.
v,-v;'
Price increases are Necessary in order partially to
offset substantial cost increases during recent years in

the operations of

company's plants.
steel industry continued to be the largest conflsumer of nickel during the year.
It is estimated that
fpver half of the nickel consumed by the steel industry
in 1946 was used in the stainless steels.
Inquiries for
■

The

stainless steels from peacetime industry continued to
expand and indications are that in 1946, despite inter¬
ruptions in steel operations, stainless steel production

j Will approximate that for 1945, when a new high record
tS<was established. Of the wrought stainless steels pro-

Ijiduced, the chromimum-nickel types comprised

more
of the total.
This was substantially
peacetime year.
{• Combining a > pleasing appearance with permanence,
ihe stainless steels are again being employed in quan¬
tity for consumer products like kitchen and r pantry
equipment, including range tops, stoves, sinks, refriger¬
ators, cutlery, cooking utensils and other uses in the

(than two-thirds
ijtiigher than any

;

home, restaurants, hotels and other public institutions.
£or

stainless

steels

the

industrial

;uln

transportation,

many

equipment field.
stainless steel cars or

grains have been ordered. These steels continue to be
employed in essential parts of commercial and military
jaircraft and they were used throughout the year in the
[manufacture of truck and trailer bodies for a variety of

[[purposes.
jr Postwar manufacture has been resumed of stainless steel
jjbeer barrels. Preference is being shown for the stain¬
less steels for many applications in the air-conditioning,
j heating, plumbing, chemical, paper and pulp, textile,
,

•marine, petroleum and food processing industries, where
substantial quantities were consumed during this year.
The three-way or triple alloy steels containing nickel,
chromium and molybdenum which came into prominence
during the war have left their mark on current peace¬
time production. Their tonnages still represent the largest of any single class of engineering alloy steels.
Of

| the

prewar standard steels the nickel-molybdenum types
for case-hardened parts which were restricted in use for

;

part of the

war

have returned to

enlarged peacetime

^application.
T

This past

year

also has

in tonnage of those

seen an appreciable expansion
low-alloy high-strength steels, con¬

taining small amounts of nickel, for flat

products and

light structural shapes employed in the construction of
railroad

automotive truck bodies, power shovels
^ and similar types of equipment where weight saving is
■

cars,

^important.
f

Consumption of nickel by the plating, field attained

fa new

high during 1946, the extent of the increase

over

being over 50%.
The desire of electroplaters to build up their inventories which were depleted
lor turned in for government use during the war has
iprewar

139 coin-issuing governments for which statistics are
available, over one hundred have used nickel either in
its pure state or as an alloy, as a part of their coinage
systems at some time during their monetary history.
The British coinage bill authorized the issuance of
cupro-nickel coins in the same denominations as the
country's existing silver coinage. The cupro-nickel coins
will be composed of 75% copper and 25% nickel.
The
present quaternary Mloy silver coins consist of 50% sil¬
ver, 40% copper, 5% nickel and 5% zinc. The advantages
of using pure nickel instead of cupro-nickel in place
of the silver coinage were fully discussed during the
Parliamentary debates on this subject in October.
It
developed that majority opinion was willing to accept
cupro-nickel rather than pure nickel as a temporary
expedient because the machinery and equipment in the
British mint would require various modifications to
handle pure nickel but was suitable at present for stamp¬
ing out cupro-nickel coins.
Many other countries are contemplating the use of,
or return to, pure nickel or nickel alloy coinage.
It is indicated that the production of nickel silver in
the United States in

years

1946 will be 50%

greater than the
production. This is largely due to the
pent-up demand caused by wartime restrictions in the
use of nickel silver in plated ware, slide fastener, key
stock and communications applications.
Its use as a
base for silver-plated articles has the added advantage
over other alloys of more nearly matching the appear¬
annual

prewar

of silver if the base metal is exposed due to wear.

ance

mining, smelting and refining of nickel

at the

difficulty counterfeiters find

working it, and the fact that it is magnetic and
readily distinguishable from most other coins. The metal
has been used for coinage purposes since 1850.
Of the

panding In the past few months and
deliveries in the fourth quarter will
be substantially above the corre*-

Robert

Cupro-nickel alloys
tant in the

are

becoming increasingly impor¬

marine, petroleum, power and chemical in¬

dustries, particularly in the form of tubing for heat
exchangers. The most widely used type is the 70-30
cupro-nickel alloy. Present commercial interest is due
in large measure to its war record as the material speci¬
fied by the United States Navy for heat exchanger
tubing and salt water lines, where it stood up well in
the

severe

conditions of wartime service.

Nicel, monel, inconel, and other INCO nickel alloys
again assumed their important place for industrial and
consumer purposes.
Some important applications ranged
from the use of nickel, monel and inconel in the sev¬
eral processes for the manufacture of synthetic soaps
without the use of fats; of monel in, the-production of
ammonium sulphate fertilizer from waste coke-oven gas;
of inconel for the high-temperature heat-treatment of
alloy steels and other materials; of inconel, nimonic or
new
nickel alloys for jet engines and other airplane
engine parts; and of nickel tubing for beer-cooling coils,
to

the

standardized

use

monel

for

several

larger

models of hospital sterilizers.

Expansion in the
field

was

use

of these materials in the

likewise

[pew industrial
[ Ih4 rtlrrtl

increased

and
««t«

plated

decorative

■nickel-plate and wider

■*

use

«i!

areas

new

applications
«,T

^Xt

—

models;

for
—

heavy
T

•

the market.

will be in

emphasis on what business
industry can do about 1947;

and

1947.

would

assume

We will have the kind of 1947 that

the American people really want.

full

want

one

There seems to be ;!

too little

employment at high :i
improved
purchasing -U
lhave it,: but each •:
major segment of the population will
have to do its share.
Management
will have to fight to
keep., prices >
and

wages

power

down

low

duce them
will

can

permit.

possible and to re->-;
as improved costs
Organized labor must

fast

H. W. Steinkraus

get away from the idea of constantly
demanding more and more, coupled in some cases with
the idea of less and less work. ; The
general public must
make its influence felt in
refusing'to purchase materials
that

are

overpriced, and shoiuld also vigorously insist

the government reducing expenditures:
We all know that if these things are done the
prospects
for the American economy will be
upon

great; for only

over-all

picture is good

the

any particular segment be
I would like to suggest that
we stop
"passing the buck," and each do our part to bring
about this condition. I think Senator Taft in his state¬
can

successful in the long run.

ment hit the nail on the head when he

said, in effect, that
higher and higher wages to meet
rising prices, but what we want is lower prices from
which the entire population will benefit instead of any
particular segment of it.
what

want is

not

the

As to the brass and copper

business, the demand

con¬

tinues very strong—but a four cent tariff on
copper put
in effect at the time when copper was
selling around six
cents per pound, during the depression thirties, is now

causing inflated prices. In our judgment the industry
and the public would both be better off if this tariff
Since th? brass ,and copper industry de¬
heavily on the building industry, the electrical
industry, and the automotive industry, all of whom have
heavy schedules ahead, I expect that 1947 will be one of
the biggest years in the history of the brass and
copper
were

removed.

pends

business.

LAWRENCE F. STERN
-u.

President, American National Bank and Trust Company
At

the

which

beginning of 1947 many of the uncertainties
present in the early days of a year ago are

were

The most serious threat to business for the

us.

year,

in the manufacture of steels. This sinter is the result
research during the past four years at

intensive

new
plant for the production of the sinter is now
being built at Copper Cliff, and if construction is not
delayed by shortage of material and equipment, it is
expected that this plant may be completed and in opera¬
tion during 1947.

Many of the postwar development and research plans
International Nickel have been put into effect this
year.
Our development and research work has been
greatly extended by former experienced personnel who
returned

from

government

and military

services,

br.s

year of

important hurdle.
are

some

strikes
severe.

♦

adjustments*

living

Fortunately there

reasons

this

cently

believe

that

will not be so
In the first place, costs of
should fall or at worst not
year

rise at the rate which
seen.

Then there

have
are

re¬

some

indications that labor itself is taking
a
much more conservative attitude
toward strikes with the rank and file

to long periods of unem¬
ployment. Another thing that war¬
optimism is the fact that
the present Congress will be in ses¬
sion a good part of 1947.
While legislation is not the
solution to labor problems, laws unfavorable to labor
may be enacted if a large number of strikes are called.
It is apparent that the pipelines of many materials
opposed

Lawrence F. Stern

rants some

filling up and that competition in some markets
returning. This is true in the so-called consumer soft
goods lines and has been reflected significantly in prices
of women's clothing. Admittedly there is still a
shortage
in garments for men but it is not at all unlikely that this
are now

will be corrected

the employment of new metallurgical specialists and the
establishment of new technical sections in Canada and

The labor situation; will be the most

Even such smaller household accessories

One

use

then, is the possibility

it 1947 will be

reels.

now

of further labor troubles with all of

its ramifications;

pot cleaners were introduced, and sporting
goods manufacturers offered many items of rustproof
fishing equipment from trolling lines to surf-casting

International Nickel's laboratories and plants in Canada.

Chicago

con¬

outstanding development pioneered by Interna¬
tional Nickel's research division and its Bayonne Works
was the introduction of Ni-Rod, a new electrode for the
making of machinable welds in cast iron.
During the year operations were begun at the com¬
pany's new precision casting plant at its Bayonne
Works.
This plant is now producing precision cast
shapes in nickel, inconel and monel.
&
Announcement was recently made of the development
of a new product, nickel oxide sinter, to be offered for

kitchen

during the year.

At the

present time there is still a shortage of con¬
sumers durable goods.
This is producing a shift from
the manufacture of soft goods to the durable items.
A
situation such as this always is accompanied by an. un¬
balanced inventory picture which probably will become
more

ous

evident

the year goes on..

Also there

are numer¬

instances of weaknesses in the price structures.

The

drop in the price level of furs late in 1946 is one ex¬
ample, the current weakness in butter prices and certain

of nickel coatings, on plastic

solving steel alloy and metallurgical - problems
war; is now proving of assistance in-meeting
,

|i|r^i^?m articles: ;The application of nickel-plating *' the

what it will be.

the United States.
In addition some of the technical
information bureaus in various parts of Europe, which
necessarily were closed during the war, have been re¬
established : at important centers.
Research work in

and

future of business

writing and broadcasting
that certain things will happen to us
in business as an astrologer might
forecast, and people are^tryirig to
outsmart
each other in. predicting

widely diverse nature.
Inconel returned for the sheathing of electric heating
elements in kitchen ranges and other units.
Monel hot
water storage tanks and kitchen sinks again appeared,
sumer

iment by the automotive industry, largest consumer of
for plating purposes, of heavier thicknesses of
metal

what the

much of this

still with

had

iiiickel

about

great deal of confused talking and writing

jjjprobably been an important factor in the activity which
[has characterized the electroplating field sinve V-J Day.
[Other contributing influences haye been the employthe

Bridgeport Brass Company
There is

well suited for coinage because of its

••

Pure nickel is

appearance, wearability, the

all forms in

J1946 will compare favorably with those of 1945, despite
^reconversion conditions and labor difficulties.
•'

HERMAN W. STEINKRAUS
President and Chairman of the Board,

five-cent pieces.

Chairman and President* The International
Nickel Company of Canada, Limited

Thursday,,January 23, 1947

Speaks Alter the Turn of the Yew

five-cent piece containing

war

S <. •1

•

the resumption by

(Continued from page 470)

•

FINANCIAL CHRONICLE

version iprbblems.

The company's research;

prices

were

where there
sales.

passed
are

some, time

a^cuji^ .siiuauop .;

signs of definite weaknesses is in retail,
:
^

On the other hand,

that

'
substantial demand will

;
con-.

[Volume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4562

Terrell Heads

Dept.

fit Weslheimer & Go.
CINCINNATI,

OHIO

—

West-

Investment

& Company, 326 Walnut
Street, members of the New York

heimer

Cincinnati

and

Stock

that

announce

Chester

Securities

Terrell has bea

JSI^B flfak,

associ-

come

t e d

with

them

Man-

ager

their

Unlisted

Se-

ft<%

'!?;

Terrell,

native

^HpPVr JS

Cincinnati,
has

hImkBg||

?/•-.■'

Mr.
a

Depart*.

ment.

■

j|Ba|Mg.

curities Trad-

tng

Exchanges,

been

'm&Xp

.jHHHLJBaHH

the Unlisted

Securities

Trading Busi-

past

career

Chester

T. Terrell

the

for

mess

years.
He started
his
1928 with The Herrick

Company, then headed by Myron
T. Herrick, former Ambassador to
France.

vv<

Mr. Terrell is a member

of the

Cincinnati Stock and Bond Club

National

and

Securities
■"

Association.

Traders

Bear, Stearns

..,v

Westheimer
previously reported in

His connection with

<& Co.

was

A.CAHYN*®COMEANY

Co.

Incorporated

NEW YORK

CHICAGO

the "Chronicle" of December 5.

Chicago

Chicago Stock Exch.
Sponsors Dinner

New

Milwaukee

York

Boston

Minneapolis

Indianapolis

Philadelphia

Kansas City

Waterloo

Omaha
Flint

Peoria

; CHICAGO,
ILL. — Ralph W.
Davis, Paul H. Davis & Co., Chair¬
man of the Board of Governors
of The Chicago Stock Exchange,

has announced that The Chicago

Exchange will sponsor a
on February 6, 1947 at the
Blackstone Hotel, honoring the
Governors of the Association of
Stock

•dinner

<New

STR AUS & BLOSSER

StockExchange

York)

Firms.

will

a-dinner

which all partners and officers of
New York and Chicago member

will be invited. Invitations

firms

to prin¬
firms
and
banks in the Chicago area. Speak¬
also being extended

are

cipal

ers

;

underwriting

Lamson Bros.

MEMBERS
NEW YORK STOCK EXCHANGE

Established 1874

CHICAGO

will be James F. Burns, Jr.,

President

the

Association

York)
Stock
Exchange
Firms, and James E. Day, Presi¬
dent of The Chicago Stock Ex¬
change. Guests of honor will be
the officers and governors of the
Association, John A.
Coleman,

Securities

<New

Chairman of the Board of Gover¬
nors

The meeting will provide for an
off-the-record discussion of mat¬

important to the se¬
curities industry. It is expected
that the dinner will be one of the
ters vitally

EXCHANGE

(ASSOCIATE)

Commodities

MEMBERS
New York Stock Exchange

Chicago Board of Trade

.Chicago Stock Exchange
New York Curb

and

135 SOUTH LA SALLE STREET

Minneapolis Grain Exchange

Exchange Associate

New York Cotton Exchange

of the New York Stock Ex¬

change, Edward C. Gray, First
Vice-President, and Howland S.
Davis, Executive Vice-President,
of the New York Stock Exchange.

STOCK

NEW YORK CURB EXCHANGE

other

Kansas City Board of Trade

CHICAGO

Chicago Mercantile Exchange

PARTNERS
E. P. Thompson
G.

Booth

Private

Telephone ANDOVER 5700

Washburn

J. F. Wade

A. W. Lindeke

W. C. Karlson

3, ILLINOIS

principal Exchanges.

E. P.

Thompson, Jr.

wires—-22 branch offices—20

Mathews

A. Neubauer

Direct Private Wires Coast to Coast

correspondents
42 Broadway

141 W. Jackson Blvd.

high-lights of the three-day an¬

Chicago 4, 111.

New York 4, N. Y.

WABash 2400

BOwling Green 9-0633

nual meeeting of the Governors

DETROIT

KANSAS CITY

MILWAUKEE

GRAND RAPIDS

the Association of Stock Exchange

Firms, which will be held in Chi¬
cago on Feb. 5, 6 and 7.

are

pleased to

announce

that

LEONARD V. DAYTON

ADAMS & CO

has been admitted to
in

partnership in

charge of

our

firm

our

office in

MINNEAPOLIS
RAND

TOWER

SPECIALISTS IN OVER-THE-COUNTER ISSUES

HOLLEY,
Members

SOUTH

105

Madison, Wis.

DAYTON

•

SALLE

La Crosse, Wis.
Wausau, Wis.

CHICAGO

CERNON

Chicago Stock Exchange and Chicago Board of Trade

•

•.

STREET,

CHICAGO

Eau Claire, Wis.

•

Roswell, New Mexico

Fond du Lac, Wis.
,

Partners

Ward W. Dayton.

Edward T. Gernon

Ernest A. Mayer

Joseph C. Ores

*
.

John M. Holley, Jr.

Elizabeth L. Dayton

THE COMMERCIAL & FINANCIAL

474

Business and Finance
\

According to recent studies, 90% of the national income
is accounted for by the flow of goods to consumers.

(Continued from page 472)

these fields will be overcome to any great extent.

In all

of this

goods in general should provide the country as a whole
with another year in which the gross national income
will be at a very high level.
Unfilled needs here and
abroad plus substantial buying power will be with us
throughout the year.

MARTIN

made

are

both

On the average, every

woman

coverage

average

$2,375.

person

per

Before

figure approaches what is adequate,
but

the

which

the

extent

been

advance

indicated

made

has

The year just closed has
John

ever,

Stevenson

without

been

Interest

return

not, how¬
difficulties.

its

reached unprecedented lows* While
was some recovery from the levels reached early
f? in the year, reasonable caution indicates the wisdom of
placing new business on a lower rate of guaranteed
-K
there
.

f return.

This step

will require

payment

higher

contracts but we are sure that present
and future policyholders will endorse this realistic ac¬
commodation to the long-run outlook for interest rates.

premium

on new

Jj Another problem has been

increase in thq surrender

This tendency is largely a
conditions and the rate of surrender
| is still far below what it was in the last pre-war year.
Looking back on the best year In its history, the life
insurance industry at the same time looks forward with
assurance
to even better years ahead.
It stands with
of life

insurance

contracts.

return to pre-war

confidence

in the future of the country
ability to contribute to personal security
through individual thrift.
undiminished

the

scheduled

and in its own

JACK I. STRAUS

toward pens.

outlook

for business

generally in

1947 is good.

Department store sales during the first half should con¬
tinue somewhere near present high levels. It appears,
however, that the period of unre¬
stricted buying is over. Customers
are
growing more selective.
They
are not paying
excessive prices for
merchandise simply
because it is
available again. As merchandise be¬
comes more plentiful, indiscriminate
buying lessens.
Customers demand
greater value. We believe that this
a

time

for

merchants

conservative

buying policies and to
be alert to the possibility of down¬
ward wholesale price changes,
When government controls were
abandoned, the obligation was thrust
squarely upon manufacturers and
retailers to accept the responsibility
holding down the cost of living. It
evident that upon the inter-re-

lationship of prices, wages, profits, and production would
depend the health of the national economy. There have
been industries which have held the line remarkably

styles will maintain our sales in 1947.
In our Shaving Instrument Division, we

/ j Many wartime technological developments have not
yet found their way into merchandise designed for wide¬
spread public use. Out of these developments thousands
of new and better products will be manufactured. All of
them will play their part in creating sales, jobs, and in¬
The retailers of this

country have a responsibility
tp assist in speeding up this delayed process. They are in
daily contact with the buying public. They know what
the public wants, and what the public will pay. Retailers
have-an obligation to guide manufacturers in the devel¬

opment and sale of these products.
| f Labor plays a very important part In this price situa¬
an equal
responsibility with management in

tion and has
and

full

production.

This

means

steady

transportation business so accurately re¬
general employment conditions
Meeting the
tremendous demand for articles not available during the
that

mass

the business and

I look

for further increases in 1947.

and larger
This is

past few years will furnish full employment
revenues

for

urban

transportation companies.

assured, provided manufacturing facilities are used to
their full

capacity and there are not work stoppages on

account, of strikes. It

time^qr

h sane labor and.
management ^program with ail parties assured of their
equitable fights, including very definitely the-right to

|s now

work.

The industry has expended large
so

that

as a

whole it is in

and

amounts for facilities

much better position to fur-

The»
-

to assume full

responsibility for the

which results.

drastic reaction

■

EARLE S. THOMPSON
President, American Water Works and Electric Co.

During the period of war, we were proud of our record
of having successfully met all the demands made
upon
greatly expanded industrial

electric and water works systems for
taking care of

tivity

the

territories

ac¬

serve.

At the termination of hostilities these
demands decreased somewhat
to

as was

expected, but during the past,
six months they have increased at
a
very rapid rate until they have •
reached an all-time high even over *
war-time
loads

levels

and

our

electric,.

currently running approx¬
imately 17% ahead of last year. This
satisfactory increase * is reflected in
all categories of our business.
In spite of the shortage of new '■*.
electric
appliances,
the
domestic'
consumption per customer - has - increased at a rate rarely before ex¬
Earle S. Thompson
perienced, and our commercial busi¬
ness is
rapidly expanding. The in¬
dustrial demand which constitutes a large proportion of
our. electric business is also expanding at a very rapid
rate.
Many industrial customers are adding new dec- ■'
trie equipment and there seems to be a general tendency in all industry to eliminate so far as possible -their ^own '
coal requirements and further to mechanize their proc- *
are

To meet : these increasing demands we are com- *
pleting. a- substantial addition to an existing power sta- 1
tion, and are undertaking the construction of two new i
power stations for completion in 1948 and 1949. We have 1
a third new power station under consideration. We are
f
also undertaking the_expansion, of pur water works fa-j 1
essses.

«■

•

}

(

■■ ■

■

■■

the lack of labor and materials pre- i
vented us from accomplishing many improvements toji
our facilities which are now under way. Unfortunately
;
the operation of high tax rates siphoned off a large part
of funds which should have been permitted to remain;
war

in the business and could

be used for this purpose. In

-spite of the elimination:
of war*- i
time excess profits taxes, out tax burden is still
ex-;]
tremely. onerous. I believe that the, continuation of this
level of taxation constitutes a definite threat to the sur-r'if
vival of American industry" as a free enterprise system. jx
witlr all other ^industries, the cost' of our I

labor and: materials has climbed rapidly. In the past we;
have been able to overcome these mounting expenses by

common

lower unit costs

due to increased

volume of sales and

improvement efficiency. Our * efforts ,^re continuing to
be concentrated, in this direction. : '
Our- industry is distinguished by'being; very large employers of capital and relatively small employers of labor.
^

—

and.cooperation is< imperative if efficiency is to
increased, costs lessened and prices lowered withinthe ability of the consumer to
buy. If this cooperation
is available, labor at present
wage levels will enjoy
real wages and the fruits of a
higher standard of living.
Shortages also will be eliminated much more quickly
and the impact of
vthe adjustment period will be greatly
minimized.
If, on the other hand^ a new wave of wage
increases is generated, labor leaders must be
prepared*

cilities.

increasing'purchase Of goods of all kinds by the public,* " niSL-attractive, comfortable service to its patrons.

profits

President, Twin City Rapid Transit Co.

The hope of everyone in business
management alike—is for a high national

income based

D. J. STROUSE

flects

production in 19|7j is to be mEaintaihed at high levels/

During the

keeping prices down.
-—labor

confidently

expect to more than double the sales volume and

The

basis

our

institu¬

tions, which can use the CA* feeling safe in the assur¬
ance that
the writing on documents and records will
endure as long as the paper it is written on.
This year will be a buyer's market. A number of emi¬
nent men, at least, state that this will be the case.
But
we of Eversharp are prepared for this kind of market.
Over the past seven years we have spent some $20 mil¬
lion building a demand for our products through adver¬
tising. This year we are increasing our advertising ex¬
penditures. This demand is in actual existence now. We
feel its pressure in our orders, which are taxing our ca¬
pacity to produce. Opr sales organization^now numbering some 175 men, and our dealers organization, now
numbering some 35,000 outlets—sense its pressure.
It is perhaps, more of a mass market than existed in
1946. Upon this market we are concentrating with all
the merchandising ingenuity at our eommand^We are
confident that our diversified line of conventional, and

believe will discover that
the public is unwilling to pay inflated prices for their
goods..v
^ ^r-.
' I'i
:' ;

the

represented by all types of financial and business

Those that have not, we

come.

tapped markets
had never before

standards for lasting quality
This is the market

market broadened before us.

•

efficient

torted

magic-sphere CA* pen, of course, truly revolution¬
Make no mistake about it—this pen
has won a permanent place for itself and will continue
in strong demand for many years to come. With the
introduction last October of our new, permanent ink—

...

present wage-price relationship must not be further dis-

Our

1946.

Several

products.

The2sPrapysituation remams- difficult, -but Inland,:
through the operation of blast furnaces and coke ovens-

ized the industry.

semi-finished

the whole-hearted cooperation of .labor is essential.

sphere-pointed pens in a wide varitey of price ranges and
Jack I. Straus

was

well.

words,

of needed

recently acquired Tram the War Assets Administration,
will be able to lessen the need for
scrap by the production of greater ; tonnages of
pig iron and at the same
tnne cooperate-with the
housing authorities in the pro¬
duction of pig iron essential to the construction
industry.5

all,
pavementpounding i sales organization behind products properly
styled, we have helped make pens and pencils move rap¬
idly off dealers' shelves. Proper styling and thorough
research are of utmost importance to us. In moving the sales volume of our company, from $2 million in 1940 to
$40 million in the Writing Instrument Division for the
fiscal year 1946, pens and pencils of styling and quality
never before developed in the industry accounted for a

—a new

The

By using powerful advertising programs,

In other

manufacturers,

will

continued productionadequate volume.
v
^

claim, in all modesty, at least some
changing the average retailer's attitude

share.

steel in the hands of

mit

we can

always existed but which
been offered suitable products.

Sykes

undoubtedly be required to rebuild such
inventories in the hands of manufacturers so as to
per¬

which exceeds government

President, K. H. Macy & Co., Inc.

months

Eversharp, Inc., succeeded
of the old Wahl

had

ahead.

remains far

the ability

however,

production

for

by throwing the full weight of a hard-hitting,

that

excess

were greatly depleted dur¬
ing the recent coal strike which
drastically reduced the

by intelligent point-of-sale merchandising, and above

substantial

locations within the stores.

We believe

the months

industry still exceed the ability to
shipments. The inventories of

big retail stores often were relegated to undesirable

of the credit for

make
Wilfred

always

Martin L. Straus

investments

new

are

of the in¬
dustry to produce the tonnages re¬
quired and new orders within the

least for

retail items which would
have a comparatively slow
turnover.
The stationery sections of
upon

only one person in three was insured
for an average of $960.

Company, fountain pens were looked

by the fact that after the last war

If, on the other hand,
crippling strikes and
adjustments such as were ex¬
year.

wave

The demand for steel

business

the

new

wage-price relation¬
ship, corrective action will be greatly

by sales figure in 1946. But, in our
opinion, they may be overlooking
some
fundamental considerations.

was

one

our

wage

It is perhaps natural for those peo¬
ple not in the industry to grow tim¬
orous when they become aware for
the first time of the stature attained

other

in the life insurance
would
suggest that" this

business

which

tort the present

STRAUS, II

readjustments
imposing

without

limitations

perienced in 1946 should further dis¬

peaks surpassing those of 1946.

in the United States, man,
and child, was insured. The

person

;

the
a

million.

effected

our economy,
belief that production may
well continue in high volume during

it is

able, will be strong in 1947. This is
the premise upon which eversharp is
predicating its new year's market¬
ing
and
manufacturing activities,

insurance had the greatest year in its
peaks were reached in the volume of
in force at $174,000,000,000, in total owned
assets at $48,000,000,000, in net addi¬
tion to assets at $3,500,000,000, and
in number of policyholders at 73

drastic

branded, strongly advertised, precisionrepresent the highest quality attain¬

life

economic

necessary
can

which

and

New

insurance

certain

accentuated

Demand for personal writing instruments, at

President, The Penn Mutual Life Insurance Company

1946

that

extent

President, Eversharp, Inc.

JOHN A. STEVENSON

We approach the year 1947 hopefully.
In the absence
severe work stoppages caused
by strikes and to the

sorely-needed, American brand teamwork in 1947.

those which

history.

President, Inland Steel Company

increases in the costs of labor result
sharply higher prices, it is entirely likely that the
public will refuse to pay them. This would be a crippling
blow to the national effort to sustain a high national in¬
come.
What we need is more and better goods at lower
prices.
It is to the interest of both management and labor to
maintain the national economy at its present high level.
That requires-teamwork to keep prices down so that
consumers can continue to buy.
The individual: worker
can play his part by maintaining a high individual work
output. It is to be hoped that we will see vastly more
in

hand, it seems that It would be a mistake to overlook
the elements of strength in the situation.
The construc¬
tive forces in consumers durable goods and in heavy

Year

WILFRED SYKES

Should recurring

probability these prices will remain high.
Weaknesses in agricultural prices and a slowing down
in retail sales in sharp contrast with the large demand
for automobiles and building, are examples of the un¬
balanced situations which will be with us this year. Con¬
ditions such as these may produce shortages of employ¬
ment in some industries while there is unemployment
in others.
In short, while we cannot look forward with
full confidence to this year's business,
on
the other

Thursday, January 23; 1947

Speaks Alter the Yuiii ^

pi 1
,

CHRONICLE

{Continued onpage 476)

«■

-■—

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4562

Volume 165

Financing N. Y.'s Airport

ll'lOiil*

\ v:

forth

Reporter's

A mi no vi t y, welL-acquainted
with financing of .this nature, ex¬

Naturally with the subject a
opic of a great deal of conjecture
arising from the proposals set

by two agencies seeking to

The "capitalization recently 'was A
changed from 30,000 shares of

pressed; confidence' that it could be
done, but at a rate perhaps a bit
higher than that auoted above.

matter1 of fi¬

operate them, the

nancing New York City's airports
quite
actively
discussed in
banking circles from time to time.

Stock

Since business is business in¬
vestment
would

shift, temporarily at least, to
financing
is
sched¬
uled for early next week when
investors will have the opportu¬
nity of subscribing to new issues
industrial

of two such

taking the
lines

which

$25,000,000

bentures, to

will be the

carry

Tire

stone

part

project

Co. with

consensus

issue

ported only by

the Fire¬

Rubber

214%

par

stock of Old Town

common

Ribbon & Carbon Co., Inc., a sub¬
stantial

proved
this

secondary
a

The

success

early

celerity

marked

week.

with

which this block of stock

was

quar¬

with

encouraging, behavior of the

to be

soned market, was

seems

real task top
bonds

of the

revenues

anything

sup¬

Priced

The

several
were

shares is

of the company

ury
-

group

est rates

the

The

Reserve

;

that inter¬

such securities could

when there will be a "mod¬
increase
in
short-term

come

not appear to be

visibly disturbed
by the latest warning that short-

erate"
rates.

the

Underwriters

—

Dealers

Distributors

—

organizers.

Co.

Industrial

Real Estate

Utility

Municipal

Railroad

•

Institutional Securitiesr

CHICAGO 4

with the proceeds

reimburse

both

•

BOARD OF TRADE BUILDING

the treas¬

Maintaining Primary Trading Markets In

shareholders.

issues

Issues Active In Over-The-Counter Markets In

the

are

variety, that is not
subject to the competitive bid¬

New York and

ding rule of the Securities and
Exchange Commission, and since

preliminary
available

now

Federal

sea¬

of shareholders, in¬

one

Knee land &

account

the

for

group of selling

the

be expected to increase.

CilUTTtnDEn & Co.
W.,nU

yu SuJ, Exchange and Ollttr principal Exchanges

negotiated

Bank of New York

His predictions, however, were
qualified to the, extent that he
said' he thought the time " would
gilt-edge bond market did

for construction expenditures,

Since

dent

Interest Rates

and the balance for the account or
a

were

Trading Markets in Unlisted Securities

Of the total stock involved here

issues

relatively steady in face of pre- ~
diction* by Allan Sproul, Presi¬

opened.

destined

after

ex¬

period of

Babbitt Inc.

66,000

hours

Treasury

out¬

its

offering, partly in
secondary under¬
taking, involves the overall offer¬
ing to the public of 207,937 shares
of $1 par common stock of B. T.
of

Even

must

over

widely noted.

'second

form

300,-

syndicate of under¬
writing firms handled the market¬
ing and oversubscription was re¬
books

rates

$18 a share, the
block represented the holdings

cluding

coupon.

450,000 shares

sizable

ported

lending

pected to stiffen
time.
■

standing 4i^% preferred stock.

the

ab¬

value to

term

000 shares were issued.

operation,

sorbed, considering the none-too-

market

the proceeds earmarked for the
retirement

appeal to the

that it would be

2%% cou¬

being issued by

pon,

will

flotations

set up along

But in municipal bond

25-year de¬

new

are

under¬

investors.

concerns.

of these

obviously
in

necessary

provided these

ters the

Largest

bankers
interested

Sold Quickly

par

of the new $5 par of which

Offering of 140,900 shares* of $5

::s

Report

475

for

broad

LOS ANGELES, CAl.

Chicago 4, Illinois

Inquiry

OMAHA, NEBR.

TEL. DEARBORN 0500

DIRECT

'v.

PRIVATE

WIRES

LINCOLN, NEBR.

prospectus

209 South La Salle Street

Chicago

We Invite Your

.SSft

EAST

AND WEST COASTS

use,

subject to certain requirements,
bankers

undoubtedly

will

Members

able to work up broad advance

Interest in their

Aside from the foregoing

however,

the

has

little

way

approaching

new

offer

issues,
week
in

Calculating

ter

GREYHOUND CORP.

Bell Teletype CG 640 & 641

AMERICAN BANK NOTE CO.

the

THE MUTER CO.

.•*

Telephone WABash 8683

undertakings.

Really

Every

Chicago Stock Exchange

wares.

"lA/#

often bankers encoun¬

situation where

they know
is going to require some
close figuring to assure
them of being in the race for
given issue.
a

Circular upon request

that

T*l-

pretty

Shillinglaw, Bolger

connection

Co.

MEMBERS

That appeared to be the case in

CHICAGO

STOCK

CHICAGO

with Tuesday's offer¬

BOARD

ing of ' $42,000,000
of
revenue
bonds of the Omaha Public Power

EXCHANGE

TRADE

HICKS 6» PRICE
MEMBERS

District.

NEW YORK

Two

groups

sought

the bonds

CHICAGO

NEW YORK

consisting of $22,000,000 in serials
and $20,000,000 in term bonds with
the

unsuccessful

group

fixing

231

INVESTMENT SECURITIES

for the basket.

1 Wall

The successful bankers, however,

MERCANTILE

(ASSOCIATE)

TRADE

EXCHANGE

SOUTH LA SALLE STREET

Teletype CG 972

EXCHANGE#

EXCHANGE

CHICAGO BOARD
CHICAGO

UNDERWRITERS and DISTRIBUTORS

"net interest cost basis of 1.983%

STOCK EXCHANGE
STOCK

CURB

CHICAGO 4

Telephones Randolph 5686 and State 1700

Street, New York 5, N. Y.

Telephone BOwling Green 9-1432

carried their bid price out

to five

ing

six

100.04999 giv¬

decimals

interest cost, carried out

decimals,

120

1.980999.

SOUTH LA SALLE

STREET, CHICAGO 3

What it all boils down to from

Telephone State 5850

the issuer's standpoint is a sav¬

Teletype CG 1070

ing of $840 annually in interest
:

cost

Brailsford

the lower bid.

Co.

Members Chicago Stock Exchange

■

Underwriters and Distributors
Underwriters and Distributors
Listed and Unlisted Stocks and Bonds

General Distributors

—

Municipal Bonds

Of Investment Securities

Fidelity Fund, Inc.

Complete Trading Facilities

Paul HLDavis & (So.
Establish«dl9l6

Members principal Stock
10 South. La Salle

Trading Department

Tele

CG-405

Exchanges

Street* Chicago: ##

208 South La Salle

Street* Chicago 4

Syndicate and Municipal Dept.
TeteCG-934 v
#

.#-•?

»...

ks:.i

J 'i- \

^A!:

M76

V;/

THE COMMERCIAL & FINANCIAL CHRONICLE

will continue at its present high rate, and this
of our business will continue at capacity and,
perhaps, will require overtime production.
The supply of materials which we need is generally
short, particularly for the production of brake shoes and
gray iron castings.
An increase in the quantity of avail¬
able scrap iron and pig iron wil be necessary for full
production in these lines.

(Continued from page 474)

branch

in our total
plant and property amounts to approximately $68,000
per water works employee and to over $30,000 per elec¬
tric employee; against approximately $7,000 for this pur¬
pose for manufacturing industry as a whole. Our wel% fare, therefore, depends not only on an adequate supply
of labor but also of capital at reasonable prices;
V», We have in the past proved our ability to attract cap-

our

industry's standing in the highly competitive cap¬
ital markets if we are to be able to continue to meet our

pur

come

when it will be

business and we, like other

doing

so on a

nec¬

of its

industries,

profitable basis.

yv The ^ yeari 1946

was

disappointing

thus

business-

for

The

industry to produce

assurance,

year

1947

^^0^;

wf,

pther series of work stoppages due
to labor controversies, with the attendant production difficulties. The

involved

suits

!
.

■

\
L Vj*
C

such

>|jMP

labor-management

and

rela-

j. k. Thompson

j—•

labor attitudes.

tion and reasonable

volume, resulting in good business all along the line.
The removal of price controls improves the outlook for
1947 as compared with 1946, but a recurrence of the dif¬
ficulties experienced in 1946, with the consequent neces¬
sity of higher prices, could well result in pricing many
items out -of the market, and in turn, several months of
poor business about the middle of the year.
I think that the banks are proving, and will continue
to prove, that they can supply any necessary credit in
every case where such credit is justified;1 I hope, how¬
ever, that fewer loans will be required in 1947 than in
1946 by reason of out-of-balance inventory situations
caused by unpredictable work stoppages.
The banks' costs of doing business have increased just
as
industry's costs have increased.
While the outlook
is still for

increased

the

final

thousands

months

American

the

debates

and net

LOWELL P. WEICKER
President, E. R. Squibb & Sons

homes

and

Leaders in the ethical drug manufacturing field know
nature of their business, the

that despite the essential

anticipated normal growth in population and the present
bright prospects in the export markets, continued longterm growth in sales volume will be affected by general
business conditions. A high rate of industrial activity,

with

large disbursements in wages and salaries, and a
high level of farm income has always been accompanied
by a relatively heavy demand for our products.

meeting

To increase

plished.

products has been

the development and production of uniform, efficacious
and pure

services

tions

The demand for automotive brake

service of this character that

drop,
rate

C. C.

operat¬
throughout the

keep

plants
operating at capacity. The indica¬
tions are that the mining and excavating industries will
continue to require full production of manganese steel
castings. Although our capacity for the production of
high nickel chrome alloy steel castings for use in heat
treating and similar furnaces has been doubled, we becapa¬

city.
.The demand ior. grayuiroa. castings *for -special
,

reflected

the

due to

This condition

Company

creased

wages

and

lic.

the

were

able to meet the in¬

Before

the

war

(fiscal

year

operation. Continental Air Lines,
carefully controlling costs reduced the "break¬
even point" for January and ensuing months to 71.55%
load factor. Although, like all other businesses operi.
ating in the 1947 peacetime economy, the airlines will
be dealing with a buyer's market, and will, have to meet
the test of price, quality and service, the public demand
assure

their continued

has by

W. G» Vollmer

for'air travel is assured along with the gradual recovery
of industry in general.

of traffic

increased

The present airline fares are

costs

going forward with their plans
to improve their services by the addition of new equip¬
ment, the rehabilitation of roadway and station facilities,
and'the continuation-of -operating efficiencies developed-

already competitive witfo

other forms of transportation, and the test of the airlines
in 1947 will be the quality of service rendered. The pub¬

supplies, while the base of railroad
revenues—freight rates—remained essentially the same.
Despite Significant decreases in 'revenue, however,'

lic remembers the excellent prewar personalized service

♦

con¬

retrenchment and reductions in wartime overhead will

of materials and

i most of the railroads

economic

nation—most

ending June 30, 1941)' Continental
Air Lines could "break even" with a
47.53% load; factor but steadily in¬
creasing costs of labor and materials
now require a load factor of 87.91%
Col. C. C. West, Jr.
to meet the operating expenses.
While many airlines are presently
experiencing financial difficulties, good management,

and

the

in operating with concurrent
increases in revenues from the pub¬

the result of materially in¬

taxes

crease

payroll

business and

the airlines

providing the

was

industry looks forward to
1947 with optimism.
During the transition period from
a wartime to a peacetime economy,

balance

for the year, the number reporting V H
I''
deficits are out of proportion to the volume
carried.

WEST, JR.

airline

industry-

something of a paradox. It was
year of high traffic levels,
yetf
many railroads experienced financial
strains
ordinarily associated with
periods of depressed business activ¬
ity. While some lines showed a profit

community

Regardless of the severe transitional period the air¬
have recently undergone — from peak war-time
service followed by major expansion necessary to meet
the demands for postwar air travel
•
1
through the year-end slump of 1946

our

lieve the demand for this type of product will enable us
to operate this division of our company at or near

and

decreases, the fluctua-

shall continue to enjoy

lines

was

our

believe will continue at

sufficient

commerce

Vice-President, Continental Air Lines, Inc.

Last year for the railroad industry

year.
■
Orders for forgings, both upset and
Trainer

are

sheets of organizations
services. |

linings will continue, we believe, at
its present high rate. Small air com¬
pressors
and other service station

Our industry is spending millions of

the confidence and high regard of the entire
and thus ensure our own successful future.

car

increases

rail available to the railroads.

products.

dollars annually in research and development of prod¬
ucts of this character.
It is by continuing to render

loadings have always been a reliable
barometer of business activity. This is another way of
saying that what happens in the railroad industry this
year will depend to a large extent
on the general tempo of American
business.
A railroad, in the final
analysis, is a service institution, afacilitating function of commerce
and industry.
As the need for rail

The requirements of the railroads for operating sup¬
plies and materials during the year 1947 are expected
to be slightly lower than during 1946 and in all prob¬
ability the demand for brake shoes,
journal bearings, and car wheels will
follow this pattern.1 The demand for
special track work, such, as frogs,
switches, and crossings will continue
at its peak but the volume will de¬
pend in a large measure on the new

spectacularly apparent that arti¬

ficial ballyhoo has been unnecessary.
»• 1
The cornerstone of our business will continue to be

in the past quarter century has

President, The Texas and Pacific Railway

Freight

drugs and/or-medicines which have been most
effective in benefiting mankind have received
publicity
far beyond that which paid avertising could ever pro-,
duce.
This is true because the intrinsic merit of the

ditions

M. N. TRAINER

ing at full schedule

y *.

The

ever why our American system of broadcast¬
ing is the world's best. They will resist with greater
vigor than ever those who would seek to change it. Our
advertisers who have with each passing year accorded
us still greater support are more anxious than ever .to
enlarge the use of our medium for the distribution of
their new products.
There can be no new products
without a prolonged period of industrial harmony. This
is 1947's greatest need and our greatest hope.

Vice-President, American Brake Shoe Company

accesories will warrant

sales under less favorable conditions

acceptance by the general public. It is in this way that
the great expansion brought about in the vitamin, sulfa
and antibiotic fields of our business has been accolS-i

W. G. VOLLMER

our

only be accomplished through the development and
introduction of new products which gain the confidence
and sponsorship of the medical profession followed by
can

our

better than

probably be at least off¬

can

revenue.

hHHSh

been made possible by the support of its listeners and
advertisers. • As we enter 1947, our listeners understand

set by reduced income account of the reduction in U. S.
Government deposits.

First

things

shall make progress in that

IBapgk;
BHMj:'^ pHHigr

the excitement

teelvision's progress.
Radio's great progress

demand for loans, the increase

in income from this source will

actions must be guided by justice and
have as their goal an economic order

mutual

•

gresses

With a continuity of produc¬
production efficiency and only slight
wage changes, it will probably still be possible to price
most products on a basis that they can be sold in large
on

Congress and other con¬
throughout the world, the stimulus of education
of athletic competition, the beauty
of the art gallery and the advances of scientific experi¬
ments, the pleasure of good entertainment and the com¬
fort of religious services.
The year of 1947 will be a year of decision for several
of the groups upon which television depends for its
progress.
By short-sightedness or selfishness they can
retard this lusty new art and a new industry which
offers the promise of new jobs and the expenditure of
millions in its development.
The spectacular develop¬
ment of all-electronic color television by the Radio Cor¬
poration of America in 1946 has rendered academic tech¬
nical objections voiced by some small segments in the
industry. In 1947 there is literally nothing except a lack
of cooperation by the human elements involved to retard

con¬

I would sum up my thinking
regarding 1947 along the
lines that the progress we will make will be dependent

largely

level

national

eyes of virtually limitless range.
To the familiar
voice of sound radio will be added eyes that will bring

yyyyy'

into view

periods in the pastt The
new
Congress will probably adopt
legislation which will be helpful in
tions.

con¬

will

places

siderable

improving

our

and

their planting pos¬
is as important as

understanding and trust.
be accomplished, and I have faith
important direction,
then I anticipate a year of heavy traffic volume and
moderate net revenue, for it seems obvious that the
increase in freight rates will not be sufficient to pro¬
vide the normal relationship between traffic volume

1946 that it is difficult to predict
HHbJjHHH
accurately the progress it can make
in 1947.
The new year will witness
Niles Trammell
the first really large scale production
of television receiving sets and transmitting stations. The
television network will begin to take form in 1947 with
extension to new key cities.
Television in 1947 will bring for the first time to hun¬
dreds

covering such al¬

lowances claimed to be due for

raise

spectacular

for all business, if industry is
permitted to produce without an-

present outlook is not too good for
an
ideal situation.
Industry
also has before
it the disturbing
question of portal-to-portal allowances and
the substantial amounts

tolerance,
based

conditions which make
Our

If these

development of television
broadcasting has been so rapid and

good

year

Radio

world

But the method of correction

the need.

that

•The

plan with any

should

introduced to the

1947.

the

correct

sible.

hundreds

prosperity.

wise, Jargely because of work stoppages which made it
difficult

are

States,

cannot

The

this unrest fertile ground for their seeds of discontent.
We must not nurture these seeds by our failure to

products born of wartime re¬
in

United

with all its vast productive
afford a duplication of last year's
is looking to America for leader-*
ship—leadership in the realm of economics as well as
politics. Democracy and the free enterprise system aret
on trial.
Those who would change our system find in

play a
major role in the creation of new
markets for these new products and

one

the

capacities,

There

resources.

new

search to be

President, Union Bank of Commerce

Even

ex¬

Big jobs lie ahead of radio broadcasting as we enter
Looking back on radio's record in 1946 and the
years before, I am confident we will meet the test.
The biggest job for 1947 is, of
course, the restoration of full pro¬
duction in industry. The real wealth
of any nation is the wealth created

J. K. THOMPSON

possibly

1947.

sumer

NILES TRAMMELL

our

give shippers faster and better service, and will
to increase the over-all efficiency of the railroads.
Labor-management peace must be achieved in 1947 if
industry and commerce is to expand and our national
economy is to be placed upon a safe and sound footing.

President, National Broadcasting Company

our customers as have other forms of public service and
industry as a whole. 4
"
Never has the outlook been brighter for expanding

look forward to

equal

for

serve

unrest.

the volume of

sales volume will

committed

will

ceed that for 1946.

^requirements for necessary plant expansion.
Our industry operates under regulated rates and it
•Should be noted that charges for utility, service are al¬
most the only ones which have so far not reflected the
great increase in cost levels. We hope that we will be
able to continue this situation^ but should expenses con¬
essary

combined

war years.

been

powerful locomotives, special purpose cars, railroad radio
equipment and other improvements of wartime research,

plants will improve somewhat and that unless labor un¬
rest, leading to strikes, interferes with our production

our industry at favorable money rates. It is im¬
portant that Government competition does not destroy

tinue to rise the time will soon

have

We believe that the production per man hour in our

ital to

Hundreds of millions of dollars
the purchase of passenger
equipment that will set new high standards of travel*
comfort and luxury.
Freight equipment, including more
during the

poses

ilt is interesting to note that the investment

Thursday, January 23, 1947(

provided by the airlines and anticipate a return to these
fine services in this postwar period.
The safety record of the airlines in 1946 was better

are

h ft

t(Continued-on- page< 478>

muM-at ft-•* $

Number 4562

[Volume 165
vwY^'i'iim

I■»!>-r

THE COMMERCIAL ft FINANCIAL CHRONICLE

•

(Continued from page 403)
hearing

the

musical

same

selection.
Failure to consider television

something entirely new has crip¬
pled it in the past.
It has been
launched

commercial

new

reality at least four times in the
past
fifteen
years,
with more
publicity and greater public re¬
than have been enjoyed by
comparable innovation. For

sponse
any

fifteen
felt

years

people have
television than

they wanted

consider

attempts at more spectacular pro

the number of times you can en¬

joy

duction.
In

1913,

■

and spent a fortune on the colos¬
sal production, "The Birth of a

The results were spec¬
tacular. The public had paid ten
cents admission for poor movies
left

seats unoccupied;
in line to buy re¬

many

people stood
served

seats

The

"The Birth

movies

point

found

spend vast

that

necessary

the

in order to pro-,

sums

entertainment

would

that

six years it took radio to become

major industry, but relatively
few people have ever seen it. In

method of financing these costly
productions. Once that lesson was

radio

sets

the

five

the

fifteen

same

years,

vast
the

fortune

has been spent on
development of television.
Yet,

each attempt to launch it has been

noteworthy commercial failure.

Various

have

reasons

been

advanced to explain these failures.
Business cycles, technical changes,
The

Federal

Communications

Commission and the

been

successive

war

have all

whipping

boys,

and it is probable that now some

preparing to put the blame

are

James

Caesar

reason

Petrillo.

that

the

has

blind alley

studying and

finding solutions for the full
of television's problems.
Television is at

real

industry

consistently followed
of illusion instead of

The

scope

science,
form, and a business. As a
science its development has been
marked by brilliant achievement.
Technically, it has been accept¬
able for many years.
The recent
development of high-definition,
an

once

art

full-color

television

has

lifted

basic maxim that each

new

Ye Invite

busi¬

competition.
provide news,

Since television

can

education

entertainment

and

'eaters and Brokers:

the home, it will compete with not
only radio, but newspapers, mag¬
azine, motion pictures and the
legitimate stage.
Here
are
some
significant

initiation of
(1) planning the origination of enrnnmtn underwritings,
corporate imdorwritinas.

(2) wishing to sell large Blocks of Stock,

figures:
There is

of determining,
accurately the number of people
who listen to radio every day, but
it

way

conservative

seems

the audience

(3) desiring

to radio.

rate

new

underwritings and in

offerings.

to estimate

at least 100,000,000

and the

tainment

& Co., Inc.
120

New York 5, N.

Broadway

Tel. REctor 2-2020

providing adequate enter¬
and
of
finding some
method of paying its way. Before
deciding off-hand that it can be
done by advertising, we should

Y#,

Teletype NY 1-2660

is about $660,000,000 a year

papers

public spends $766,000,000
to buy these papers for a
total of $1,400,000,000.
Movies
have
a
total
of
4,year

BENNETT, SPAN1ER 8 CO.
INCORPORATED

Members

Illinois Securities

Dealers Association

(Continued on page 479)

105 South La Salle Street

CHICAGO 3

Michigan and General Market

Municipal and Corporate

Specialists In

Securities

UNLISTED SECURITIES
■Private Wire to Detroit and

New

York

'Send

barrier to television's
<a

to participate in

available Block

Cost to advertisers who use these

expansion. So far as purely scien¬
development is concerned,

expanding at-

Inquiries

lem of

tific

for your free copy of

The Wall Street Commentator

comparable

First

The Business Aspect of Television

of M'chigan

MEMBER

-Unfortunately, the economic

or/

Corporation

OF DETROIT STOCK

South La Salle

135

business side of television, and as
a result the artistic side as well,
have

Uh:

from anything ever known before.
Television faces the same prob¬

radio during its years of greatest

people. Radio is supported entire¬
learned, movies switfly became a ly by advertising, at a cost to
advertisers of about $400,000,000
great industry.
What happened was very simple. per year.
Instead of merely putting vaude¬
Magazines, weekly and month¬
ville acts and stage plays on film,' ly, have a circulation of about
with all of the limitations that the 174,000,000 and account for about
stage
imposes,
motion
picture $450,000,000 of the nation's annual
producers developed a new art advertising bill. In addition, the
form that used the camera's po¬ public pays $310,000,000 a year to
tentialities. They brought scenes purchase magazines to make the
from all over the world, changed total cost about $760,000,000;
settings constantly as the action
Daily newspapers have a circula¬
indicated, and produced a form of tion of about 48,000,000; Sunday
entertainment that was different newspapers,
about
40,000,000.

to a far higher state of technical
excellence than that enjoyed by

there is

^'a

Nation."

vide

for

ness must look at its

Nation."

and

•*'

; '

not

only
the
lesson
- • ■
• ■
'
1 offered by the early years of mo¬
tion pictures, but also the prime,
Griffith raised

continue to please a large section
of the public, and to find some

owned

I'-n ,iiir-v»v»:i

-r111

CHICAGO

EXCHANGE

TELEPHONE

BELL

CENTRAL 4274

Street

TELETYPE

ca 1004

■

ILL.

Telephone Randolph S287

been

sadly neglected. Be¬
possible to send pictures
through the air by radio waves,
there has been an overwhelming
tendency to think of television as
just another form of radio, and
to assume that its problems are
cause it is

Teletype CG 949
DETROIT

NEW YORK

CITIZENS UTILITIESCO/COMMON im<

identical with those of radio.-

This
sion's
if

the

run

OVER-THE-COUNTER SECURITIES
SOUTHERN UNION GAS CO. COMMON

confusion that would result

same

Industrials

airplane industry tried to

Public Utilities

Bank Stocks
WEST OHIO GAS CO. COMMON

its business like the automo¬

tive industry because both vehi¬
cles
are
propelled by gasoline

Direct

engines. As an art form and a
business, television has no more
similarity to radio than radio has
to phonograph records or to the
production
of
Broadway plays.
Had the same type of misconcep¬
tion prevailed continuously in the
motion picture business, we would
stijl see movies only in nickelode¬

private wire to Los Angeles

J. J. O'Connor & Co.
Incorporated

SWIFT, HENKE & CO.
MEMBERS

SOUTH

135

CHICAGO

ons.

STOCK

SALLE

135 South La Salle Street

EXCHANGE

STREET,

CHICAGO

CHICAGO 3
3

Teletype CG 635

Telephone Franklin 8200

Telephone: Dearborn 0811

"As

of fact,

matter

there is a
striking parallel between the devr
elopmenf of motion pictures and
a

teleyisiohl BbtfrteU the"story, of a'
invention
brought
to the
point of technical acceptability; of
attempts, to
alleviate
financial
pain iby the- sale of advertising. It
new

took

FOR OVER

motion

fumbling
tacular

The
motion

years

%
CENTURY

pictures
twenty
to. achieve spec¬

REAL ESTATE SECURITIES

success.

commercial history of the

picture

began
in
1894
"Kinetoscope"
publicly exhibited in New
York. Filming of the Passion Play
in 1897 attracted little attention,
but pictures of the Corbett-Fitz-

INDUSTRIAL & PUBLIC UTILITY

simmons fightiwere just as popu¬
lar as are prize

Meritorious Securities.

when Edison's

new

was

fights today

television.;v.-Ww
•*

vaudeville; acompani-

ments, of nickelodeons, and barn-

STOCKS & BONDS

'
••

•

We Specialize In

X;'"';'."

-V-'

..!;/£

y-.V*

The Acquisition

<ft Distribution of

over

Thencame the period of movie

shqrts.as

■

CASWEEL & CO.
*4120 SOIJTH I.A SAIXE STREET. CHICAGO 3
Teletype CG 1122

...

..Phone Centra] 5690

William A. Fuller
^

WsmlaH

Co.

cf Chicago Slocl £xchanf$

209 S. LA SALLE STREET
Tel. Dearborn 5600

•

CHICAGO 4

Teletype CG 146

f
m

NU-ENAMEL CORP. COMMON

misconception of televi¬
problems has caused the

THE COMMERCIAL; & FINANCIAL CHRONICLE

478

Business and Finance
(Continued from page 476)

will be spent by the airlines in

ing

1947 studying and effect¬

and methods of improving schedule reliabil¬

means

ity, bettering passenger service and insuring safety. De¬
spite the. great among of publicity given air accidents in
1946,^the safety record of that year surpassed all pre¬
vious years. Approximately 83,000,000 passenger revenue
miles were flown for each passenger fatality,
v
Vacation and pleasure travel into the vacation para¬
dise served by Continental in six western and Rocky
Mountain states is expected to reach a new high in
1947.
The unsurpassed beauty of the many national
pairks, monuments and historical points of interest in
.

this

will draw hundreds of thousands of tourists into

area

the Rocky Mountain area for vacations and

relaxation.

The tremendous increase in public acceptance of air

tr^asportationduring 1946 points to

continued healthy

growth and expansion in air transportation during 1947.

GEORGE AVERY WHITE
President, State Mutual Life Assurance Company
We

are

usual

passing through

postwar

era

which follows

pattern. The intense activity which accompanies

has by some been mistakenly considered a normal
cdndition. We have been feeding our

war

economic

and

financial

fires

Speaks After the Turn of the Year
ahead of the

a re-appraisal of
thinking on the part of the
public, labor, Government agencies, and even railroad
msmagement.
I

softened by large scale activities in the heavier industries and throughout the large fields of employment,
Moreover, it is not to be expected that the public will
long tolerate the waste, paralysis and injury to innocent

L Interstate Commerce Commission in its recent
5^^ ^terdecision admitted that the increases were

groups brought
stoppages.

jumps

than any previous year, and it is predicted that in 1947
air travel will be made even safer. More than $1,000,000

must

is not

enough, and there

•'

sufficient only to permit
earnings of less than 3% on
the investment in plant and'
property less depreciation.
No industry can maintain its credit on such a low basis
of earnings over a period of
years.
While the railroads
did not ask for a sufficient increase and the Interstate
Commerce Commission granted
substantially all that was

road

the

appraisal of the future cannot dismiss the existence
needs, both long term and short range,

tremendous

producer goods and in consumer categories.
Despite
notwithstanding the fears of

the frustrations of 1946 and

depression, the logical prospect is that we cannot long
defer the job of meeting these needs.
High on the list are the needs of industry itself. To a
large degree it has been struggling with patched-up
machines, just as the consumer has been struggling with
an overworked
automobile or an obsolete refrigerator.

industry have increased about 50% since 1940, and
of materials, supplies and equipment has in¬

cost

same period not less than 35%.
Freight
increases granted effective Jan. 1, provided for an in¬
crease in gross revenue of around 14^%.
If increased

than

While it made capital expenditures of $1,083

repairs.

provided to bring about an increase in gross
revenue of about 20%, that would still be less than the
increase in prices of almost all commodities since 1940,
and certainly would not be exorbitant; but that is rough¬
ly what is necessary to enable the railroads to do a
better job and improve their credit, .and it should be
forthcoming while the country is prosperous, because no
magic formula has yet been devised to insure against

the years 1941-1945, these were largely
increase of 20% in pig iron and 18% in ingot

million during

for

capacity. By contrast, its capital expenditures of $968
million during the 1936-1940 period actually went for

be resumed and a new advance

tivity and flexibility of output

towards greater produc¬
registered by one of our

biggest producers.

EDWARD FOSS WILSON
President, Wilson & Co., Inc.

;
' ;
and the depression before it had

The war
.

another basic trend: the mechanization and

•

■

•

finishing facilities and modernization, not expansion cf
basic capacity.
This important and interrupted task of
modernization and refinement of finishing facilities will

lean years.

i\/r^o+

industry, for example, is now spending more
half billion dollars annually for maintenance and

The steel

were

our

work

creased in that

rates

about by industry-wide strikes and

asked for, there was too much time
lag between in¬
creased cost and increased revenue.
Wages in the rail¬

with

possessions
and
energies to making
things that would destroy the struc¬
have devoted

sheriff"

accumulated

our

Thursday, January 23, 1947

-'interrupted

•
'
;;

electrifiearT.

tures civilization has built.
'i

bear

the

face

the

future

must

of this

permanent burden

^wartime orgy—a staggering national
debt—depleted
natural
resources,

controls,

and
inefficiency
in
work
habits
engendered by the fact that for years

there

have

workmen.

been

are

ex¬

perience the first effects of inventory
losses.

Many more will follow be¬
inexperienced business men
George A. White
who have enjoyed apparent success
in a constantly rising market over a
period of years have forgotten that the law of gravita-*
tien applies to business—what goes; up must .come down.
The war-caused flusk of fever has been too often
cause

mistaken

the: glow '.of; health andi many have
attributed to their own acumen the easy successes and
for

boom period. The recession in prices is the
first step toward a return to business sanity and the
elimination of the unfit in our economic picture. 1947

profits of

from which some will emerge
many
will be immeasurably wiser.
The
endeavor of this country to steer to the right politically
and economically, while the rest of the world moves to
| the left, is a challenge to our best thinking and utmost
is;, likely to be
sadder

year

and

endeavor.

we can

restore our American incentive and

markets,

fall

actions

control

jobs .than

beginning to

black
and

summer

and; the"*

decontrol

resulted

power costs, and the long-range demand fo£ goods,
f gether *: with the presence , of investment ^j)ower;^nd^
purchasing ;power, 'suggest that this trend;;, will: be re^

and-;rer>

terrified

J-

maldistribution, both geographically!'
and seasonally.
Since final price decontrol, moa&f;
prices have; fluctuated widely. ^ItJ
naturally
time

for

has

taken

consumers,

one-half ; years

of government con-^
declines in meat£

Substantial

ments have been made.

It is good to

come!

Edward f. Wilson

after decontrol, suggest that >
major ' short-time readjust-

many

war

have these behind

supplies and prices in 1947 than in 1946 but

complete the

Maladjustments in

free

which

pent-up demand for the products of American ingenuity
and enterprise; The kind of people we are will deter¬

meat that

rebuilding the world's civilization, to replacing the
structures which the war destroyed, to satisfying the

mine the kind of future
In my opinion, 1947
of real progress.

shall have.

will be

4j Life insurance is so much

a year

of adjustment and

a part of

the nation and of its citizens that

the economy of

the nation prospers,

life insurance coverages increase.

While 1947 may not
see a reptition of the record-breaking increase in life
insurance coverage that occurred in 1946, it is likely to
be a year of relatively high production and sales in both
the individual and group fields. The trend toward group
accident, health, hospitalization, and medical coverage,
as well as group
life and retirement annuities, seems
so

certain to

continue.

WILLIAM WHITE
,

President, The Delaware, Lackawanna and Western
Railroad Company

handled in

peacetime year, but they did it
without profit, which Is regrettable because if the tailroads are not able to prosper during
periods of heavy traffic volume and
lay up reserves for lean years, their
credit

ever

will

railroad

never

incomes

restored.

demonstrated clearly by

requires a larger
property to
bring in a million dollars of revenue
and to provide a job for an em¬
ployee, and a bigger percentage of
its revenue dollar is paid out for

Finally, and

meat has

of special importance in the immediate

future, will be the sustaining activities of the automotive
industry, the transportation field, particularly in the remotor

has made that "The outlook for the livestock and meat

industry is the outlook for the national income."
While many people throughout this industry have mis¬
givings about the permanence of present livestock and
meat prices, they nevertheless believe that consumer in¬
comes at or hear present level will continue to provide
a sustained demand for a large volume of meat at favor¬

R. E.

able

prices.
I am hopeful that 1947 will be a year in which our
industry, as well as agriculture, labor and industry gen¬
erally, will be building a solid foundation for the future
by making sound adjustments to a peacetime economy.I am encouraged to believe that we have the economic.

past the fears and prejpare

for
for
,

i a
.

•

^ .........
.4vV '• So

*•.

. .
\ •>->* '<

glooihyi|
the^ equally^
of
a5riew:^

emotional

than any other in¬
dustry except the coal industry.
This country wants private owner¬
ship and operation of railroads to
continue, but to preserve this key¬
stone in the arch of private enter¬
prise we must raise our sights with
William White
respect to railroad profits and per¬
mit the railroads to earn profits
to
improvide for proper maintenance, necessary
provements, reduce indebtedness and to restore and
maintain credit, all of which is necessary to provide for
the American people the kind of railroad service which

To stay "two

expectancy

dream world.

But there is

to expect that

reason!:!

upset completely the natural

devel-\|

long period of high industrial activity.
A big part of this country's postwar
adjustments should
be
completed
within 1947. Price fluctuations and

/.
'

Wm. P.

changes in availability of goods may
dips in some fields. However,

the

effect

these

business

Witherow

4:v

cause

v^Wtten ^
^Avas allowed. This was far short.-of
offsetting the. huge.' increases . in
kolbeit-t? E: Woodruff
operating costs and it was not until f
I
:
;'Jan.' 1 of this year, that an intreasel
was'allowed' that comes anywhere, hear, meeting *;the§
railroads^ needs. Everiu that 17 % increase does "riot tak£ :
iritb account the rise ih material prices; since the rail-•
roads' application was presented last April, nor does tt provide; for the increased; payroll taxes brought about;:;
^>the-he^ly enacted ^rrisser ;Bill
:about' $90-.milliori rinhtttdly; •
'
•
1 r.
•
,7
As a result of this harrow spread between income and
outgo, -iV appears ;'that the railroads will be fPrced to •
,

of basic needs that say we. .•
only will have, but must have a !

opment
not

feifore the war. Railrbad wages have !
!, gone up 51% since 1939. | The last ;
Jinerease^was granted;-Jah!t;4*'v: 1-9,48^!
^rtbut the railroads were not permitted i
^■by[::jthe .Interstate' Cbmrheriier-.jCotHrr'r-,:
gvsidb M4hcrease thei^rates^^uhtii^July

...a

emotional fears .ahdV£i
dominating as to;p

hopes will get so

whole should be

■

given any shading, from the

purposes

the selling price of railroad service
^ ^emained practicaiiy 'the same as be-

many ne#f£hd "volatile • factors thqtv^
an analysis Of - the prospects can
belief in! depression! tb;

for this unusual situathat wages, materials and

reason

was

.;piuel costs increased sharply while j

ains. so J
contains ?so..,

,!*

Ihe

is-to tnrusv

period of > sustained

%fcears.
Etion

WILLIAM P. WITHEROW

ior

Railroad Company

year

jest pet
manageriiimt^rifcs^

the Erie Railroad handled the greatest
volume of freight traffic of any peacetime year in its
history, but like all the other railroads, found that in the •
midst of plenty their earnings were •
^little better than during depression ,
Last

without serious impact upon our current well-being; ;>

Industrial

WOODRUFF

President* Erie

|>oUticakelimate Sir ^hichvfMs

President, Blaw-Knox . Company

rolling stock and the expansion of:
freight service, commercial and institutional build¬
ing, utility expansion, public works and highway construction. The needs in many of these fields cannot be
deferred for long. The employment required to meet
such needs will serve to moderate dips in other fields and
convey the nation's economy along to the next phase of
what should be a long period of growing prosperity.
placement of railroad

been

the experience of recent years.
truth in the statement someone

There is evidently much

The national economy

industry

for

demand

prosperity.

The

they need and to which they'are .entitled.

the

piled

of build—

generated by; the movement of millions of
higher plateau of living standards.

high level of employment and

■fiffl

want.

great effect of

consumer

investment in plant and

payroll

The

consumers

Neyif needs have been and are feeing
Americans to

naffihg and growth.
pattern this

On the other hand, the improved feed supply and
price situation place the industry in' a favorable position
to produce, in due time, the full amount and kinds of

and

In 1946 the railroads handled the heaviest volume of
traffic

T:. ?P_

started

compxxyhftt rid^prcpiv our iiir*»cfnpir rv«arirofiricr
somewhat adversely our livestock marketing

Tho naiinri is in

Ilifli'wni11

year.

enterprise system we shall enjoy future years of
prosperity while we make our very great contribution

potential* is more than the demands which

The

livestock production

adaptation of municipalities and commu¬

the motor age.

nities to

must remember that livestock and meat production is a
process.

pand and some new ones will be created. Agriculture
will follow industry in mechanization.
The tempo of
business will be further increased by a new effort to

able, for the most part, to consider more care¬
* !
fully the longer-term outlook.
It certainly seems reasonable to expect more stability

slow

\r"

unlikely that the nation will ever return to pre¬
scales of business Volume. Many industries will ex*

It is
-

and to be

in meat

-a

prices since the high levels immedi¬

ately

lower! costs is

and

efficiency

aria*!

adjust themselves|to'ii
competitive markets after four aridf]
trol.

this growing battle for production

class of" engineering
^ manufacturers underlying and priming the nation's-in- :
dustrial empire; These are the builders of producer goods ,
such as plants and manufacturing processes, handling
i;-materials, mills;: machinery and production-equipment;:..
special responsibility devolves on these makers of ,
eproducer goods and there is little question but that they -,
.*** will have a high volbme of activity for some years to
*

producers

To be spotlighted iii

"considerable^,

processors

>^:

—•

(Continued on page 480)

THE COMMERCIAL & FINANCIAL CHRONICLE

all, must present such superquality that it will draw the
viewer, from all other activity

Television Prospects

(Continued from page 477)
940,000,000 paid admissions per
year,
for
which
they
collect

$1,500,000,000.

their large advertiseing
revenue,
newspapers
and
magazines require income from
their circulation in order to oper¬
,

ate

businesses. Radio is the only
large-scale purveyor of news and
entertainment that has been able

exist

solely from the sale of
-.advertising. The advertiser pays
for everything that
goes out over
the air, including Presidential
speeches, public service programs,
sustaining programs, etc., because
advertising is radio's only source
.

of income.

On the other hand, some publica¬
tions have prospered
entirely or

largely
*

from

their

revenue, with little

circulation

j* from advertising. The

income

movies

are

doing nicely without any advertising revenue at all; their box-

office income is nearly four times
what the advertisers spend for

radio, although their daily audi¬
ence is only a fraction of radio's.
Radio

cheap because almost
has a radio set, and

! everybody
1"

because

the

limited

number

broadcasting

stations

insures

enormous

audience

for

half

any

decent program." But who
makes up the mass audience that
:i's such an effective sales medium
way

for

long

vfrrfflK&i living

In spite of

for the serial stories to which
they
listen while they work? Not so

that

davenport

room needs

until the

new

washing
machine
have
bought and paid for. -

costly cameras* rare first
editions, and valuable paintings.

the

These fine people make excellen circulation; the only trouble
is that their number is strictly

been

limited.

Is
„

the

graph
mass

owner

grant

we •

that

effective ad¬

will be

with

never

There

can

inattentive

pause.

up loose ends. Television
producers have already learned
once

viewer's

attention

wavers, he is lost for that particu¬

lar

show, which

advertiser

that

means

count

can

Television Entertainment Costly

Producing television

backtracking to

pick
that

when the carefully planned com¬
mercial is presented.

the

him

ment

the

and hold

kind

that

will

gain

audience is going

a mass

to be very costly. We can discount
in advance the features
about

which

spot

hear .the most; namely,

sports events, etc. All

news,

out

(Continued

on page

480)

discovered

keep the viewer from turning
away
from the com¬
mercial, should he dislike it as
much
as
many
radio listeners

his- eyes

horned the * newefectrie ^kitchen*
•

the car,

abhor
radio's
inescapable com¬
mercials, how great an audience

a new radio,
and ..other
heavy family investments, lined
up roughly in order of purchases.

COLKDV. NORTON & CO.
ESTABLISHED

will television require in order to
afford entertainment even as cost¬

costly item of such

limited usefulness as a television
receiver be placed on the
buying
lists of the millions who make
up

present

radio's

how

cause

reach

1920

Members of
New York Stock Exchange

New York Curb (Assoc.)

Chicago Board of Trade

Cleveland Stock Exchange

it is cheap. Advertisers can

advertising-sponsored televi¬

can

mass

market?

sion live without

Many
Zenth

And

mass

dealers

have

missing

market?

enormous

ments

can

listen

played

present

even

and

for

the

immediate

future, companies producing these
sets will do a
thriving business.
There are in every city a number
of
gadget buyers, people who
want

first

with

the

can

set-up

audience

be¬
at

LISTED and UNLISTED

There

television

that

The eye is much
than the ear. People

same.

fickle

by pointing to the way tele¬
vision receivers are
being snapped
up today. I grant you that for the

its

with

per person.

indication

will be the

ear,

succeeded

commercial

bet on tele¬
vision, and backed up their state¬

employed by radio?

now

has

low cost

very

told

that

Radio

radio

enjoy

over

with

the

and

half

same

music

again,

over

SECURITIES

are

free to do other things while

508-12 Madison Ave.

down a newspaper or magazine,
pick it up later, and continue
reading where they left off (they
may even see the same ad four or
five times).

first.

But

30 Pine Street

Toledo 4, Ohio

listening to the inexpensive plays
presented by radio. They can lay

New York 5, N. Y.

Tel.: Adams 6131

Harold B.

Long Distance: LD 71
Bell
Private

to:

CHICAGO—DETROIT—NEW

television, to hold interest

Smith, Mgr.

Tel. BQwling Green 9-2432
BeR Teletype: NY 1*2978

Teletype: TO 190
Wire

YORK—CLEVELAND

dollar?

costly phono-

combinations?

No.

who

;• radio

Radio's

inexpensive

own

tb'04941*. Iwhen

high priced radio sets

BROKERS

-more

were

-DEALERS

Stranahan^Hartfs&Co.

sold

INCORPORATED

than in any prewar year following
the depression, the
average retail
,

price of all sets manufactured was
under $35.00. The mass public is
keenly

of price tags when

aware

«5h;

Curtiss, House & Company
MEMBERS
New York Stock Exchange

goes shopping
for entertain¬
ment, and this goes for radio or
television receivers just as definitely as it does for the theater,

amusement park, or

widely circu¬
magazines.
What
would
happen,
for
example,
to
the
lated

New York Curb

(Associate)

Union Commerce Building

UNDERWRITERS & DISTRIBUTORS

Cleveland 14

Main 7071

were

increased from ten cents to

■

Television sets

coming on
to the market are
priced at least
ten times as high as the
public is
willing to pay for the most nearly

comparable

sets.

The

model

$350,

which

and

excellent

Underwriters

else. It has

service.
table

This

OHIO
Main

Dealers

Distributors

BONDS

Municipal

years

•

of.

Securities.

CHICAGO 3u,

BLDG.

135

8201

LA SALLE

ST.

Randolph 8950

Teletype TO 282

CLEVELAND
UNION

for

many

Teletype CG 871

CINCINNATI 2

COMMERCE

704

UNION

CENTRAL

BLDG.

Prospect 1928

Parkway 5730

STOCKS

—

standard broadcast

sound channel of television.
Larg¬

models,

equipped

radio

services and

with

turntables,

MEMBER

CLEVELAND

STOCK

EXCHANGE

set,

black

model

band, no FMr no shortwave—the
only sound it reproduces is the
er

period of

organization

TOLEDO

BROADWAY

Government, Municipal, Corporate

substantial

and white receiver, will
bring the
purchaser television, and nothing
*

selling

over a

are

plus

stallation

and

Teletype NY 1-154

first

being made sells for
another fifty for in¬

buying

developed

Rector 2-8270

deliveries

complete

115

now

radio

offer you the facilities

NEW YORK 6

Conversely, what hap¬

pened to the sale of books when
good
titles
became
generally
available for 25p?

"4-

dollar?

circulation of the Saturday Even¬
ing Post if the price per copy
one

MUNICIPAL BONDS

Cleveland Stock Exchange

with

some

THE FIRST CLEVELAND CORP.
NATIONAL CITY BANK BUILDING
CLEVELAND 14

Telephone
Prospect 1571

Wm. J. Mericka

Teletype
Bell System CV 443 & 444

Co.

INCORPORATED

cases

(

priced at
what it would take to purchase a
good
automobile
today.
While
competition and mass production,
are

Members Cleveland Stock Exchange

if really
attained, will bring down
prices, there is nothing in the

cards to indicate that it will ever
be possible to build television re*

;
.

Offering

ceivers for anything like the price
that radio sets can be brought
from the
assembly lines.

Members Cleveland Stock Exchange

Who, then, is going to buy tele¬
vision sets?

service in

experienced trading and distributing

Ohio

Corporation and

General

Market

Municipal Bonds; Stocks and Land TrustCertificates

Are newlyweds,

who
that they
simply must have
an
inexpensive radio, going to
spend the price of furnishing a

feel
,

living
••

room

television

Trading Markets

re-,

ceiver?* Not; I
believe, until: they
have

good

assortment iof

plipnces and a ^ar^by,which tim^
,.most of them will be doing busi¬

;»

with maternity wards
and[
dydee washes. Homes of moderate
finandal
ness

which

structure^every

posesses

housewives

use

radio,

the soap

Union Commerce Building

one

of,

where
that pays

Teletype

Long Distance

CV 565

29 Broadway

CLEVELAND 14

ap-

NEW YORK 6

Telephone MAin 8500

WHitehall 4-0900

500

Union Commerce Building

Cleveland

14,

Ohio

Direct Private Wire to New York

entertain-^

market is made up of many

/millions
.

method

some

breakfast food,
ages, and other items that can be
purchased within a few blocks of

most homes for less than

vertising medium than radio, that

Many of these people have the
price to buy television receivers,
they and others with
bever-^ just as

soap,

Even

television is

which that family intends to
purcase in the immediate
and inde¬
finite future. It includes the new

can pur¬

chase

Every family has, consciously or
otherwise, what might be called
a "Buy List." On it are
the items

Where will

ative

slightly divergent tastes

re-upholstering,
refrigerator and

479

'«i»f*W»

COMMERCIAL & FINANCIAL CHRONICLE

Prospects

"SP^T^rCMpi

Thursday,.January 23, 1947i

:;'o' V'/*

-W-f-

'J:,;,/*!'■

Volume 165

Number 4562'

(Continued from page 402)
them informed about the
but also kept the

company,

com¬

munity informed.
A study of the records of these
^companies over the past ten years
«

showed

that

those

the

third

group who kept their employees
<and the community well informed

jstood

head

and

shoulders

above

/the other two groups in freedom
from labor troubles, in getting the
first choice of help when needed,

and

being

considered

the

best

places in the community in
which to work.
This report also
showed that good community re¬
lations begin in the plant, and the
,

place to start improving com"munity standing is to improve re¬
lations with the employees them¬
selves. The standing of a company
in a community is largely a re¬
flection of what its own employ¬

in a position to discuss this sub¬
ject carefully with a union and

can

sometimes

factory much

have full facts and

agements

figures if the

the weaknesses

the

influence workers
more

than

man¬

can

negotiation

well

have not

join

influence their own
people.
So it is important that
managements, learn the art of

subject comes up during a collec¬
tive bargaining session.
One

481

fer

by paying modest fees to
actual cost. Here is another
proven way of helping to make

the

union

think

management more efficient, and
especially in helping foremen who
are at that
important point of con¬
tact

between

agement,

workers

how

and

man¬

part of management which I have
observed is that when they face

know

it,

will fail to work out

certain demands of this type, in¬
stead of calmly discussing the sub¬

proposition for their companies
is possible.
-

ject with their union committee,
they fly off the handle and be¬

the

know, one of
in industry

during the war was the so-called
Training Within Industry pro¬

duction program for
peacetime as
it did so

gram.

five years of war.

come

Businessmen

accustomed

are

granted that their union

resentatives

how

think
of

all

know

rep¬

about

business is run, but unions
in terms of strategy,
demands
the

the

war

businessmen

who

program for the

who

workers,

were

ment

politics in handling
That is one of
why union leaders

set

this

trial relations and industrial
pro¬

effectively

Many

men in

of it that Ts in¬

the

better ' ari:

In the early days of the1: Small
industrial plants, before large cor¬
porations existed, there whs a
spirit' of; goodwill and an attitude
of cooperation in the majority of
companies/It is this spirit of good¬

from

necessary support

con-*

other;

instrument it becomes.

I sincerely hope that

organization will succeed

each

collective

during the

will and teamwork

industry and labor

must work

to bring back in industry today..

this

government and

loaned

the

govern¬

without pay have set up a

their membership.

Training Within Industry
foundation

reasons

effectively.

getting the

ended, this pro¬
gram was dropped by the govern¬
ment. However, the original group

the

and

also

you

programs

When the

thinking about costs and balance
sheets, and they are apt to take
for

many

finest

or they
sound a

the

telligently done,

industry for improving the indus¬

excited, thereby destroying
the possibility of calm negotiation.

representatives

with

learned—-the

handle the
problems of human relations more
on

learned how to

even

well

they
bargaining
table is the place for strong lan¬
guage and table pounding. V, It
shouldn't be anything Of the kind.
Collective bargaining
must
bo

cover

the

think about it.

ees

'•

which hiiy; industriM cohipany' can

Why Not Industrial Peace?
and kept

■;

THE COMMERCIAL & FINANCIAL
CHRONICLE

New

program

Jersey,

Management Must Be OpenMinded

Furthermore, management
riot

afford

anything

its

that labor

CANADIAN

can-

mind

going to
approaches
the bargaining table with an open
mind, a calm temper, and is al¬
ways willing to hear the case, to
explain, to discuss mutual points
of view, and present facts where

•

ask for. If management

We offer

Investment Dealers and

investment

Underwriters

approach

can come

Indianapolis Bond and
Share

important subjects
which are apt to come before it at
the bargaining table. For example,
the question of a guaranteed an¬
nual wage will be - presented at
many bargaining conferences in
the coming months. Management
should be prepared through care¬

own

/*?"

-ft

:.//... /

437 ST. JAMES ST.,
W., MONTREAL
PHONE PL. 3932

PHONE AD. 9371

INDIANAPOLIS 6, INS.

new

being considered.

have

not

--.v-r'/f,

Michigan and Detroit
*

-'■-•i.-7

Securities

Connections

with

ACTIVE
all

Principal Markets;

tistical Information Furnished; Orders executed
in

been- looking

all

Listed

and

Unlisted

Stocks

and

DEALERS

Sta¬

in all

Bonds.

>ocii

•-Ar

CANADIAN S SECURITIES
WRITE, PHONE OR WIRE

demands of their workers.

Private Wire Connections

In those few cases where guar¬

anteed annual wage is actually in

existence, the nature of the prod¬

ESTABLISHED

Metropolitan

1919

Members Detroit Stock Exchange

639 Penobscot

and

downs, the problem of giving
guaranteed annual
wage
is
closely linked to the question of
whether the business could sur¬

New York and Montreal

CHARLES A. PARCELLS & CO.

permitted of steady

employment.
However, in those
industries having the greatest ups
a

Building

Elgin 0161

Building

TORONTO

DETROIT 26

Telephone—Randolph 5625

Bell System Teletype—BE 206

Montreal

Quebec

Ottawa

Hamilton

Sherbrooke

London

New York

vive.

believe, however, that consid¬

erable progress can

be made in a
good many companies in leveling
out the curve of employment and
in numerous ways maintaining a
higher average weekly take-home
pay by more careful planning of

production schedules.

It is

cer¬

Canadian Securities

The Wisconsin Company

tainly in the interest of corpora¬
tions to do more of this than they

Member

have done in the past, not only for
the benefit of the worker, but for

of Chicago Stock Exchange

TELEPHONE

DALY

TELETYPE

tiie more uniform flow of produc¬
tion, with the result in savings for

MILW.

the corporation itself.

Government

0525

Profit-Sharing

Public

☆

Underwriters and Distributors

Here again the hazards

for

which

the

worker

Cleveland, it has oroven eminently
successful. Nevertheless, any man¬
agement of

company

should be

Direct Private Wire to New York—Montreal

responsible are such that it
Would be quite difficult to carry
out such a program successfully.
However, in some olants like the
Lincoln Electric C am p any of

Railroad

Utility

Investment Securities

involved and the potential losses
which a business may sustain from
not

Industrial

Municipal

MILWAUKEE

Another subject to which man¬
agement should give careful con¬
sideration is the/subject of profit-

Provincial

291

:■»

causes

Managers of

relations, and
constantly find themselves unpre¬
pared to discuss intelligently the

sharing.

LIMITED

ahead in their labor

uct made has

?;f

.iv,,,..

McLeod,Youmg,Weir & Company

contract

^ahead. They plan their plant ex¬
pansions far in advance, but most
them

businesses plan their finances well

situation

task of preparing a report so that
the facts can be given to the union

is'impossible.

committee when the
is

regarding

underwriting.

LIMITED

Corporation

129 EAST MARKET ST.

Someone should be assigned the

•

service
and

244 BAY STREET, TORONTO

to what they could do in place
an annual wage if an annual

wage
(

BONDS

♦'

ful studies of their
'as

•

Burns Bros.&Denton

real agree¬

To be able to do this manage¬
ment must be making studies con¬

•

ment.

stantly

•

complete facilities and

personalized

facts are needed, then out of such
an

GOVERNMENT

MUNICIPAL AND CORPORATION

Wood, Gundy & Co.

Specialists in Securities of Wisconsin Corporations

LIMITED

> 7"

Branch

Offices:

MADISON

*kv

V?:1' 7--

.♦

-f

•

OSHKOSH

■

Members Investment

WAUSAU

<£
Montreal

Winnipeg

Dealerf Association of Canada

TORONTO

Vancouver

New York

London, England

THE COMMERCIAL & FINANCIAL CHRONICLE

482

ii|

Prospects of Recession in 1947
(Continued from page 392)
to believe that the
boom could possibly come to an
end

future

has

sales

were

unfilled orders
business was profit¬
elaborate plans for fu¬

unlimited,

seem

large,

were

able

periods, the
always looked rosy,
increasing, demands

and

ture business expansion were un¬
der way.

mand.

■, One
episode, namely, the boom
iof 1919-20f provides an especially

The national product consists of
three classes of goods and serv¬
ices: 1 (1)
government. services

pertinent warning. The parallels
between events then and now are
striking even though not perfect

(Federal,

State and local),
(2)
consumer goods and services, and
(3) capital goods.

in all details. We well know that

the boom of 1919 ended not in a

Each

mild, corrective recession but in a

lasting

depression

major

;

these

three

classes

-two goods and services is purchased by
expenditures of a particular type.
(1) Government services are pur¬

Vears. At the low point, produc¬
tion was off one-third and at least

million

out of
work. And all this happened in
spite of the fact, as was demon¬
strated by later events, that there
was a
large backlog of demand
for houses,
cars,
radios, plants,
were

persons

^oo easy to acquire in a boom pe¬
riod, that
^prosperity
brief

mild

only

and

lie estimate future product we must
estimate how much will be spent
for each of these three classes of

recessions"

"corrective

•

ahead.

Specific Factors

„

product depends upon the amount
of these expenditures.
Thus, to

of balanced

era

new

and

The amount of the national

uct.

J'"'Now I should like to discuss
briefly the specific factors that are

Capacity
In

likely to determine the course of
business in 1947.

expenditures

the

& "/

of $83 bil¬
midyear,
when
they are reduced to $70 bil¬
lions.
At the present $83 bil¬
lion level, the flow of nonthe

tion

which

high

presently

comes.
'

would

in¬
that

consumer

is
expected
purchases of

tivity pf Industry Will rise mod¬
erately above present levels. •
These estimates of capacity na¬
tional product may be regarded
as the goals toward which we are
aiming. They are the bases from
which the actual performance of
the
economy
can
be measured.

near

They

are

par

will

the

normal

deferred

level,

demands

10.

Net

when

rent

laxed,- and
fall.

controls

when

prices

Normal expenditures for

non-durables

in golf.

food

re¬

would be

about

$70 billions at currently high
Estimates of Expenditures

levels of income.

In arriving at our tentative or
first-approximation estimates of
expenditures, I have assumed that
the national product will be at
capacity levels throughout 1947.
We are near the capacity level
now, and I wanted to test whether
the economy might carry through
the year on this basis.
I shall

Consumers

expenditures

for

durable goods are limited

only
The in¬

by their availability.
dicated

increase

estimate

of the

duction

reflects

trend in pro¬

durables

during

1947.
5.

services

■

expenditures

are

for

somewhat

now

indicate in summary
fashion how the estimates of each

lower than normal in relation

expenditure item

was

table I have prepared, there
row of figures labeled
"Ca-

expenditures for
goods and services were based
on
a total budget of $35 bil¬

State

the

fact

for rent

Federal

trols.

local

tures

are

over

level

about

$42 billions, t

6,7,8. Expenditures for residen¬
tial

construction, other con¬
struction, and durable equip¬
ment

are

basis

estimated

special

studies

expenditures

estimated

quarters of 1947, expenditures are
sufficient to provide a demand
for

practically all the product that

can

be produced. In the first quar¬

ter, expenditures are set at 208.7
which compares with capacity of
212.0. In the second quarter ex-.
penditures

are 212.6 against ca¬
pacity of 214.0. But in the third
quarter, after the decline in gov¬

spending, the end of the

ernment

boom

A Decline in National Product

Indicated

Superficially, this would
to

indicate

•

Blyth .y Co., Inc.
Chicago

Cleveland

Salt Lake

•

Eureka

•

Stockton

Santa

Private

Barbara

about

12%.

Diego

•

situated cities, our
Pittsburgh

principal

this

not'

does

—

The

the
we

tion that

you

production would remain
capacity level.
But once
production should drop from that
level, incomes would fall and conthe

would

with

weaken

both

that

the
and

consumer

spending would be less

consumer and business spend¬
ing would still further reduce in¬

which

comes

cover

San

•

Beverly

re¬

only when
was

could
a

have

made

ar¬

level of pro¬

reached

the

which

sufficient

revised

esti¬

mates of

spending taking into ac¬
downward
spiralling
illustrated by the original failure

count

the states of California and Nevada.

the

300

510 South

Montgomery Street

Spring Street

SAN FRANCISCO 20

LOS ANGELES 13

Teletype SF 431-432

offices

which

started

representatives completely

Jose

Hills

would

turn

spending would be
buy the product. -

Spokane

In
downward spiral would

rested

Minneapolis

•

Long Beach

•

connect

But

complete the story.

short,

Radiating from offices located in 23 strategically

Portland

•
•

Dallas

Fresno

•

San

•

wires

Detroit

•

Sacramento

•

Seattle

Houston

California

Philadelphia

•

Louisville

•

City

Pasadena

•

Angeles

Providence

Indianapolis

•

Rock Island

Oakland

Los

*
•

seem

national

product of about $26 billions—or

duction

•

duce expenditures, and so on.

DISTRIBUTORS

TRADING FACILITIES

Springfield

decline

UNDERWRITERS

than estimated in the first approx¬
imations. This secondary decline

First California Company

York

consumer."

cumulation, demand adds up to
$190.7 billions—whereas capacity

fidence

securities

New

non-durable

is $217 billions.

business

Boston

re¬

by the Department of

expenditure estimates, as
will recall, were first approx-.
imations based upon the assump¬

likely

to influence these items.

in. investment

the basis of data

comparing total expendi¬

result

Building, San Francisco

(excess of ex-'
imports) are esti¬

and capacity
product, ■>. you ? will see
that during the first and second.,

With relaxation of rent

Underwriters and Dealers

Russ

pre¬

national

chiefly
expenditures
held down by con¬

have made of the factors

and

This

toward

Commerce.
Now

that

controls, this item will probably rise toward its normal

services.
2.

level

sales.

to incomes. This is due

derived:

lions for fiscal year 1948.
The
figures shown are smaller than
the total budget which con¬
tains
large
items
of mere
transfer payments from tax¬
payers
to veterans, farmers,
etc., not paid for goods or

National Product

goods and the end of inventory ac¬

Consumer

now

somewhat'

normal

exports

leased

are

estimated: oii

reach

occur

mated

the

fully satisfied, when more du¬
rable goods become available,

their

relation

ports

when

are

tory accumulation would
sumably cease.

non-

within

fall

»'i

midyear
at which time further inven-'

next six months to somewhere

durables

than

might

consumer

WiriiiMiiiiiiimiii

inventory accumula¬
continue until total,

will

relation

even

inventories

exceeds

consumers

amount

normal

the assumption that the recent
trend

until

durables to

'i.V"ri.<;»'

inventories'

for

level

present

lions

9. Expenditures for increases in

continued at

are

mated to increase by about 5%, on
the assumption that the produc¬

services. '

goods and

projection of

Consumer

non-durables

chased

ordinarily by expenditures
called
tax
payments. (2) Con¬
sumer goods and services are pur¬
chased by the every-day living
expenditures of individuals. (3)
Capital
goods
are
purchased
office buildings, and other durable chiefly by business firms as ex¬
penditures for new plant, equip¬
goods.
- f 'So it seems to me that past ex¬ ment, etc.. These three kinds of
perience should put us on guard expenditures together constitute
the demand for the national prod¬
vagainst thecomfortable view^ll
six

the

•.

boom

soon.

••

As every businessman knows, parity National Product."
These
production can be carried on only indicate the estimated amount of
the product can be sold. This product which the country could
means
that for every dollar of produce at full employment and
In
the fourth
production there must be a dollar without strikes.
of expenditure to buy the product.
quarter of 1946, the actual prod¬
We
Therefore, the amount of the total uct was about 206 billions.
product in any year depends on were then running very near to
the amount of expenditures which capacity which is estimated for
are made to buy that product.
It that quarter at $210 billions. Dur¬
depends, in other words, on de¬ ing the year 1947, capacity is esti¬

>at the time

based

are

Teletype LA 349-196

Head Office San Francisco

Private Wires Between San

Frammo*Lo*Angeles and New York

spending to add up. In these
estimates, I have included an in¬
in government spending for

crease

public works over three. billions
on the theory that in the event of
recession the gvoemment would
go
ahead on some of its many
postponed projects. -• I have also
assumed that the recession would

effects upon
expenditures for dur¬

have only moderate
consumer

ables, upon residential construc¬
tion and the other capital items.

Specializing in

SEATTLE

PORTLAND

SPOKANE

EUGENE

Nevertheless,

fort'^e-; 3rd
around

are

Brokers

•

Underwriters

•

Dealers

capacity level.

quarter

belaw;t1he

>
•

to infer

I should not want you
from

TRADING MARKETS MAINTAINED

PACIFIC NORTHWEST SECURITIES
New

4th

Strategic Factors

COAST ISSUES
Wire

and

$173 to $174 billions

j^Mrh^is,:abput

EAST and WEST

Private

the final estimates'

this arithmetic that I think

recession is certain to come by

the middle of the year.

System to

My con¬

clusion, rather, is that there, are.
several
strategic factors in the
business situation which, in com¬

York, Chicago, Detroit, Philadelphia & San Diego

could produce a reces¬
the face of great de¬

bination,

sion even in

tors ate:
tion in

Members

New

York

Stock

Exchange

Members

New

York

Curb

Exchange

Philadelphia Stock Exchange
Members Los Angeles Stock Exchange

530 W. 6th

able goods,

FOSTER & MARSHALL

Street, Los Angeles 14

Municipal and .Corporation Bonds

Trinity 5343

MEMBERS

Philadelphia
Pittsburgh
Wilkes-Barre

Long Beach
San

Hanover

New York

Beverly Hills

Diego
;

Hagerstown

•New York Stock Exchange and. New^York

„

^Associate);

820 SECOND A VENUE;.SEATTLE
Teletype SE 482-483

'i-

"ft:

(2) the^probablri decline
1
expenditures* for hori^dur?.^
and (3) the "probable'
termination of inventory accumu-;
lation.
'
riamer:

Members

These fac¬
(1) the coming reduc- '•
government expenditures;

mands for durables.

Buckley Brothers

Telephone SEneca 0680

? .1 have hot included among, these v.
strategic factors the labor situa¬
tion because I think that it will
improve. Neither have.I included
the unbalanced structure of wages
and prices,' j^ee^use riok, that ■
)

•.

X J

„

'34562•"
"I

*; txibm'

*■11 '' i1

'J''

seemi ' to
that

think

•

iimm.

j"i iai.;i

v«;

•

be • /subsiding:,'^!;
maladjustments

these

being corrected.
>
Now for certain qualifications:*

J. B. Hanauer & Go.

A« W, Hastings & Co. Inc.

To Be Exch. Member

,v: SOMERVILLE, MASS. — A. W.
Hastings & Go., Inc. is engaging

(Spftcial to The Financial Chronicle)

are

1. The

three

have

factors

suddenly

not

may

effective at the

come

and

strategic

mentioned

same

be¬
time

I have in¬

dicated.

In this case the decline
would be less precipitous than
has been shown in Table 2. '
2. I

much

less definite about

the timing of the recession than

is suggested by my figures. The
decline might come this "spring
it

might

delayed

until

1948.

NEWARK, -N. J.—J. B. Han¬
& Co., a partnership, will.be
formed as of Feb. 1, with offices
auer

Commerce

Hanauer,

Adrian

member of

Kristejlex,

New

the

York

Ellehsfeirii Mrv Krist€dler has been

doing "businessas aniridividual
broker.

Officers are-Ivan^ K. BEpyL FresK

Other

partners

are

and

George

L, White, Secretary.

Stock

Exchange, Herbert A. Glucksman,
-William; Hanauer, arid Meyer <C.*

floor

in the securities business from of¬
fices at 373
Highland Avenue.

Street. - Partners dent and Treasurer

will be Jack B. Hanauer, Leonard

•—i—
.

mmttmmrnm

the

(Special

The

Financial

spending

the

decline

Established 1899

Chronicle)

KANSAS CITY, MO.—Daniel A,
Owens is

connected with A.

now

effects

COMPANY

Qwens With A*JHL Bennett

possibility that the. principals in J. B. Hanauer & Co,, H. ; Bennett & Company,
.:
productich of durable consumer inc.
Baltimore Avenue.
goods and capital goods will
rise rapidly enough to offset

3. There
•

' \.

1004

Members of New York Stock
Exchange

New York Curb Exchange (Assoc.)

for government, for
non-durables, and for

consumer

inventories.
4. We

have

now

important

number

that

factors

would

BALTIMORE

NEW

tend to cushion any decline in
business—factors
not
present
in

comparable situa¬
may
not have
been given sufficient weight in;
table 2.
Among such possible
cushioning factors are:
previous

tions.

These

BANKERS BOND S

INCORPORATED

The

1st FLOOR KENTUCKY HOME LIFE BLDG.

liquid savings of indi¬
viduals which might be used
on
a
large scale during a
period of unemployment.
b. Unemployments compensa¬
a.

LOUISVILLE 2, KENTUCKY

MEAD, MILLER & CO.

tion.
c.

Resistance of organized labor
to
wage
cuts which may-

Members
New

New

help to maintain mass pur¬
chasing power.
d. Government support of ag¬
ricultural prices.
e. Deliberate use of fiscal pol-

INVESTMENT DEPT.
THOMAS
H.

GRAHAM,
W.

iey by the Federal Govern¬
including tax reduc/
>
tion and increased spending;
f. Stimulation of both foreign
and domestic buying following a decline in prices,

INVESTMENT

Manager

WOOD HANNAH,

BOHNERT

WILLARD P.

CHARLES C.

McNAIR

DEPT.

LEWIS

HOWARD D. LOUDEN

FETTER

ROBERT H. JOHNSTON,

UNDERWRITERS

-•>

JR.

there

was

stringency ahead;
1919-20, interest
high and credit

Firm Bids

—

COUNTY
Firm Offerings

—

CORPORATE ISSUES

SOUTHERN

Clyde C. Pierce Corporation

Government, busi¬

and consumers are all

Long Distance 47; 5-3680

were

Bell Teletype JK

Branch Office

ST. PETERSBURG

A. M. LAW & COMPANY

approaching

turning point in business, though
by no means absolutely concilia
sive, are sufficient to justify concaution

and

(Established

;

same

Long Distance 51

many other
months econo¬
mists have agreed with only a few

•

For

U.
S, Government Securities

some

dissenting voices, on the strong
possibility of a recession in 1947.
This unanimity tends to make one
suspicious. Things seldom work
out as everyone expects them tor
IndeedC;> sbopld thi£ predicted ©4
cession occur, it .would be the
best-advertised one in history. Its
occurrence
onr" schedule -would
lend to the dubious art-.of busi.4
hess' ioreeastihg.. a pew aura, ? of
resnectability.
-• '/
Neyertheless, I .still think; that

and

Municipal Bonds

MUNICIPAL BONDS
Active Market inr Alt Local Securities
Unlisted Stocks and Bonds

Bond Department

•

are

dangers in the present

The Atlantic National Bank

situation,
If the: predictions of
% the- economists ;wuh have;helped

true..;7;;.;

3;:7-

■

C. F* CASSELL & COMPANY, INC.

Jacksonville

businessmen to prepare for these

•

dangers, and perhaps to ward
them off, I should say that the
predictions have^ been; worthwhile
•jeyeh though they: may hot Worne

DEALERS

VIRGINIA and NORTH CAROLINA

there

DISTRIBUTORS

UNDERWRITERS

Bell

doubt heard this

warning from

sources.

•

1892)

SPARTANBURG, S. C.

sharp

lookout for additional evidence.

You have

PROPERTIES

JACKSONVILLE 1, FLORIDA

in 1919-20.

the indications of

and

SECURITIES

181

To conclude, it seems to me that

siderable

-1

Quotations

TEXTILE

of 1919-20.
We
conscious of the

Conclusion

MARYLAND

Lexington 0210

DISTRICTS

ALL LOCAL SECURITIES

acting more prudently than

;

Tel.

than

dangers.

•

NATIONAL BANK BUILDING

BALTIMORE

in 1919-20.
profiting from the

are

ness,

UNLISTED

po¬

vulnerable

less

and

experience
are

businesses

and

stronger liquid

financially

they

scarce.

sition
e.

DEALERS

★
«*%

MUNICIPAL

Exchanges

were

d. Individuals
are

the

foreseeable

whereas in
rates

Active Markets in Local Issues

DISTRIBUTORS

Florida Bonds

speculation, du¬
plicate buying, etc., are less
rampant this time.
Interest rates are low today
and

Commission orders executed

FIRST

b. Inventory

credit

KING

Stock

this time than in 1919-20.

★

Asst. Mgr.

rise in the price level
been substantially less

has

Baltimore and New York

comparing the present out¬
look with that in 1919-20, cer¬
tains important
differences
should be considered. <
' -.**
The

Exchange
Exchange (Associate)

Baltimore Stock Exchange

5. In

York: Stock

York. Cwrb

r. M, CONWAY

ment

YORK

i/,\

Branch Office

-V-'v '•

V-•'

'"-v

601-602

Krise

Bldg.,

Phones 6112 and 6422

»TICX82;

Main Offiea

LYNCHBURG, VA.

Jacksonville 'Florida

Bell Teletype-—LY 89

CHARLOTTESVILLE, VA*
112 Second St., N. E.
.

Bell

Phones

836

Tel^t^e——C^HARVL 86

ITHBT COMMERCIAL & FINANCIAL CHRONICLE

484

wins

Report"

Fallacies oi the "Nathan

strike.

kind

some

tries

come

amicable

simple and direct terms, with ant
explanation of each component. In
this>way they will better be able
to understand the problems that
daily confront management. They

compro¬

mise which will still leave their

Profits might be termed exces¬

with

companies

semblance

entitled

are

better

under*

companies would sive right now in the soft
goods profits to satisfy the owners of standing
of
"depreciation
and
be only too willing, in order to
ier
arid; luxury industries. The "Na¬ the business. Sometimes they do amortization," and will thereby
get more than their present share than
tial tabor strife exists—should he
Report," however, takes all not see eye to eye, are a little not be able to accuse management
in their respective fields.
taken into consideration, the figbusiness as a
can

normal years and the heav¬
industries—where the poten¬

them and

with
Situation in "Soft Goods"
Industries

be assured that if prices

lic may

Believing that only

they never -hope to gain; ih en¬
tirety, Management sits? down

management

and labor lose time and money; ]

(Continued from page 390)
for the next.

Both

Thurfcfo^

excellent

doubt, that prices and the cost of

years,

living are too high, especially the
factors in soft goods; luxuries; and
foods. But these are definitely re¬

ceding now, and have been for

\>t... f}/

Even

' t' *

would

work

'.in?

•

VT%<

Pharoahs

the

situation of the automobile com¬

panies

because

constituted, companies must op¬

Labor
much

small margins to meet

Inevitable competition. The pub¬

was

own

particular strikes
condition

This

settled.

were

not yet

of suppliers strikes, long

after their

Yet the fact remains

of the fields

one

production was stagnated

that, in our economy as presently
erate

only

was

where

must lay aside in good
enough to take care of the

years.

takes a

long while for companies to get
back into high production.
Take,
for instance, the situation as it ex¬
isted last Spring. No sooner was
one
strike settled, other strikes
began in attending concerns. The

viduals

■lean

time than necessary, as it

Egypt, apd companies and indi¬
years

industry
to

wage-price-profit. equation
always does come into balance
quickly. But strikes always upset
this balance for a longer period of

cursory

time

to continue

allowed

The

preciable
extent,
unless
these
companies? are willing to file pe¬
titions in bankruptcy when poorer
years come along. Basic economic
prudence has not changed since
the

capacity for a compara¬
tively short time longer these
prices will recede much further.

glance at these
figures will prove that companies
manufacturing the basic materials
in industry must raise prices if
their labor costs rise to any ap¬
a

months.

few

some

ucts.
'

hand, there is no

On the other

two generally
1941 and 1945,
and apply them to some of the
largest companies in some of the
main categories of business. These
indicate, even in these above-nor¬
mal years, that the effects of a
21% increase in their labor costs
would reduce earnings to a very
dangerous
point,
or
eliminate
them entirely, if they were not
to raise the prices of their, prod¬
show

below

ures

be reduced,

has

righted itself completely.
have

could
more

accomplished

had it not struck, as

proved to labor's cost. Nobody

REDEMPTION NOTICE

criterion,

and in¬
goods
lines
where prices and profits are ad¬
mittedly too high. But the im¬

headstrong in

pending talks between labor and
management will center on the
hard goods fields* as stated beford,

better approach in a
of arbitration and in

cludes

and

these

soft

therefore the

ment has

report's argu4

weakness which is ob¬

vious.

inanimate

matter

things
are
made
would be practically useless if it
in

for

not

were

the

labor involved

changing its form or consist¬
by manual operation.
The

dex

should

the

base.

Then

be devised

to pay

above
below, depending

fluctuation

the

index.

The index itself should comprise
all those things a workman buys,
much the same as the index used

cooking pan, the

and

dress,

the

which

the suit

razor,

pencil
write

pen

are

with

intrinsically

almost worthless in themselves
basic

materials. A machine is

raw

determining farm parity prices,
weighted logically in accord¬
ance with the degree of necessity
of each item in the components in
the cost of living of the worker,
and differing in individual indus¬

useless without its operator.
If tries and locales. Incentives can be
costs, and hence prices, in the ba¬ worked out from this basis to en¬
sic fields of the hard goods com¬ courage production. This is def¬
ponents rise, this would start an¬ initely feasible, and answers in
other spiral which would be even very.broad outlines the problem
of recurring wage disagreements.
more difficult to control than the
last one.
Any dispute outside of this, as to
But the
problem which con¬ working conditions, etc., should
fronts us now, and within the next be resolved by arbitration. It is
few months, in union demands for suggested in this regard that man¬
greatly increased wages, include agement and labor each appoint
attendant fears which must be one member of a committee, and

interruptions
losses

create

produc¬

only—both for

answer? the recurring
problems of management and la¬
bor.

both

these

agree

third.

Any decision of this board should
be final. It might be suggested,
also, that both management and
labor be responsible to one an¬
other on a basis of equality before
the law.

with few exceptions, have a very
limited khowledgenof the! conduct

business. Companies must re¬
that they are obligated^ to

alize

has been that union leaders have

presented to
certain enlarged

ment

their employees informed
and to enlighten them toward a
better
comprehension
of
this
keep

Until now, the general pattern

annually

manage¬

demands

problem. They should understand
the division of the sales dollar in

the

Earnings and Wages—(in millions)

Pennsylvania Turnpike Commission and FidelityPhiladelphia Trust Company as Trustee, Pennsylvania
Turnpike Cdmmissioft hereby gives notice <>f its 1
fidri to redeem and does hereby call for redEinptidfi Oh
cipal amount of Commonwealth of Pennsylvania Turn¬
pike Revenue: Z%% Bonds, dated August 1, 1938, due
August 1, 1968, and numbered 1-to 42,300, inclusive, at
the principal amount thereof and atcrued interest to
August 1, 1947, together with a premium of 4% of the

said bonds shall

cease

to accrue

and interest coupons

maturing after said date shall become void.
All bonds

irrevocably in¬

nize that they are

terdependent.

Permissive Incorp.
Issue Seen Factor

j
)

Total Revenues
$3,128
Operating Income
212.5
Total Wages
1,007
Net Income Reported—.
179.0

$2,437
489.7
670.0
192.6

20.7

1945

209.6
314.0

Operating Income
•
Total Wages
......
Net Income Reported—
—

154

really to turn the heat—in;

"educational" way—on

members

floor

tive

the'Ac-

the

Ex-*

change.
.Nine vacancies are

to^oc^iir

or*

the Board of Governors this spring

Nominating Committee,
which was chosen by ballot at the
annual elections last. May, will
have to draw up in March a slate
of officers to fill these positions.
A ^member, of. the Board may be»
renamed for a second consecutive

the

and

the

three

years

but cannot

(2)
8.62

937

„

62.8

189.9
200.0

422

1941

1945

614

52.4

U. S. Steel
1945

course

simple matter

for the Ames Committee to $ontinue its existence since it is mada

289

49.0

1941

It is of

77.3

group

May

what they may

Pennsylvania RR.

978

prominent member of

may discover after
elections that, unlike
expect or be hop¬
ing for, the new Board of Gov¬
ernors may be more strongly op¬
posed to permissive incorporation
than even the present one.
the

19.1

6.29

Maynard Committee said the

Ames

104.7

(1)

141

1945

13.5

Goodyear Tire

required to be presented at either of
said offices for redemption and payment.
are

the Board again before the
May elections. The rumor around
is tha£;the?&fce^
by

lections.

1941

137.8

1941

members o£

present

has elapsed. An opposition
entered, too, within
two weeks after the Nominating

15.9

1945

255.1
57.2

$1,618

the

before

the Boardsagain, - that is,' that H
would come, up for consideration;

Committee has announced its se¬

Standard Oil N. J.

Total Revenues

sive

slate may be

Phelps Dodge

161.1

397.4
56.5

that the question of permis¬
incorporation would be up;

over,

year

37.7

47.4

10.4

679.3

132.0

for

hold on the sub¬
ject of permissive incorporation,
Amyas Ames of Kidder, Peabody & Co., Chairman of the
Committee in favor of permissive
incorporation, said his group did
not propose to try to influence
the May elections of Governors
in order to push the question or
permissive incorporation through
the Board.
He predicted, more¬

the offices may

again after servitig these two*
consaoutiva tatma tmtu aftafi ?ai,

$ 263

242

1941

$1,298

Operating Income
Total Wages
Net Income Reported—.

(Continued from page 393)
to the views which candidates

term

61.1

General Electric

Total Revenues

In NYSE Elections

run

1941

1945

1941

1945

premium above set forth, and after said date interest on

American Can

General Motors

principal amount thereof.
On August 1, 1947 there will become and be due and
payable at the Fidelity-Philadelphia Trust Company,
135 South Broad Street, in the City of Philadelphia,
Pennsylvania, or at the option of the holder, or reg¬
istered owner, at the principal office of Bankers Trust
Company, 16 Wall Street in the Borough of Manhattan,
the City of New York, the principal amount of said
bonds and accrued interest thereon together' with the

willingness on both hands to live
together in one house peaceably
and amicably. They must recog¬

poses

It is well known that workers,

Pattern of Wage Adjustments

Augustir"t§47 ail^tfK^outstandi^

Recognizing that there is no
in any formula which
might ever be devised, both labor
and management must recognize
that there must be
a
definite
panacea

formula

profits" in reserves for

which

Notice is hereby given that pursuant to the terms of
Trust Indenture dated-August 1, 1938 between

must

combination
tying wages

wages should be estab¬
lished in connection with this in¬

ency

tion

TURNPIKE REVENUE 3%% BONDS

and

enlarged index of commod¬

these rates,

The

which

from

business and labor. A better means
of approach "must be found with

COMMONWEALTH OF PENNSYLVANIA

ities;
properly
weighted,
and
properly specified in the contract.

another,

annual

$42,300,000

There

Then, too, we must re¬
that the greatest part of
price of any manufactured
article is labor of one category or
member

the

which strikes incur. Constant and

sound.

of "hiding

these purposes.

Rates of

pointed out beforehand. By recog¬
nizing them now we may be able
to avoid the pitfalls and losses

NOTICE or REDEMPTION

one direction or an¬
other, and strikes are the result.
This approach is economically un¬

'of individuals whose partici4 ;
pation on the Committee does not
need to be sanctioned, by the firm?
with whjch; they are affiliated.
Everyone dn the MayhardvCotn4

;

1941

Trl rCoupon bonds should be accompanied, by |iU coupons
appertainingvtbere^bKehd maturing'spbsequentsfo#^
gust 1, 1947, Coupons maturing. August 1, 1947 or prior

thereto should be detached and

presented for payment
in the usual manner; Fully registered bonds or bonds
registered as to principal only should be accompanied
by assignments or transfer powers duly executed in

££& blank.

PENNSYLVANIA TURNPIKE COMMISSION

;

By JAMES F. TORRANCE, Secretary and Treasurer
Dated:

January

VA."' >v.;#

14, 1947.

' J-'

•

«.;/r^

t-■ :V

i. •

1945

Operating

'i'

V'.v/" '4'"'

'J-*'

f."

,<")/*:

i'r»

V-1

(

Holders and registered owners of said bonds may at
their option surrender the same as aforesaid at any
time prior to August 1, 1947 and obtain immediate pay¬
ment of the principal thereof and the premium of 4%.

Coupons maturing on February 1, 1947 and August 1,
1947, will also be paid immediately at their face amount
if surrendered with said bonds, or they may be de¬
tached .and presented for payment in the usual manner;

$
v

331

5.96
•

Net Income Reported—

(1)—Not
(2)—Not
(3)—Not
(4)—Not

36.8
1.68

$1,747.

■$,

41.71
82.4

85.4 '%

;

231.8

601.1

32.8

90.9

90.3

115.8

30.2

available, but estimated about $45
available, but estimated about $35
available, but estimated about $43
available, but estimated about $29

7.59

(3)

1.20

5.17

83,4

•

2.48

mh
3.13

to $48 million,

to $37 million,
to $47 million,
to $31 million.

NOTES—

Operating Income represents that derived from the conduct of
the business, before income taxes thereon, and after charges neces¬
sary for the prudent and proper management of the concerns involved
(such as depreciation and amortization), but does not include any
non-recurring items.* ■ ' '
Total Wages are exclusive Of

executive and officers' salaries.

which is available foe the owners (or com¬
stockholders) of the companies*

Net Income is that
mon

^All ^Mounts' aboYe include

Usually a ihuch yfider, margin .of fJjprafitt^,,4

Committee

was

committee

firms rather * than of individual?!

1941

1945

6.04

*iyttee!:feiirdd.r wi^th^dx^ssed'
approval of his particular firm.
In a very real sense, the Maynard

Pittsburgh Consol. Coal

1941

$1,617

786.7

9.6

107.1

Income

Total Wages

• •* •

716
^80.9
214.2
12.1

Eastern Gas & Fuel

Operating ^Income
Total Wages
Net Income Reported—

PRIVILEGE OF IMMEDIATE PAYMENT
'

—

Total Revenues

■

Total Revenue?

The dissolution of the Maynard

Committee, it is understood,; does
not

mean

that those members of

the Exchange; who: are: opposed to

permissive incorporation will now
be- entirely
without leadership.
Key individuals, of the present
Committee propose to keep close
of any? developments that

watch

might- affect: the situation mate¬
rially.
It is probably true that
some

members

group

have not relished their jobs

much

as some

the

Maynard

of the members

of. the Ames, Committee
have
theirs, but the opponents of per¬
missive

incorporation? have

al¬

ready

demonstrated their ability
rally together for a concerted
fight if the sittiatidn; in their
to

which.ithexeAs
ppiniop^shppld; demapd^it,
4 •» <k

Number 4562

yplume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Securities

Now

485

Registration

■

'i-X-S
'V:t

..v-

•

Acme Electric
June

Corp., Cuba, N. Y.

rants for common stock to underwriters at an
aggregate
price of $200.
Of the net proceeds ($292,940) $50,000
will be used to pay current bank
loans; about $20,000

will be used for

machinery and equipment, and the

re¬

mainder for working capital.
'

'•

•

other funds, will be used to redeem
$20,000,000 of 7%

filed

132,740 shares ($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four
selling stockholders
the proceeds from the sale of 63,860 shares.
Company
also will receive proceeds from the sale of
20,000 war¬

*V..

::0*

Aerovox Corp.,

53- i??:'

: >':v

•.

Bedford, Mass.

warrant.

rants will be sold to officers and

pany. Price—Debentures at 98.

cumulative preferred stock at $115 a share
plus accrued
dividends. Indefinitely postponed.

American

Water works Co., Inc., N. Y.
March 30 filed 2,343,105 shares of common
(par $5) plus
an additional number determinable
only after the re¬
sults of competitive bidding are known.
Underwriters—
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
&

Co.

The remaining
employees of the

war¬
com¬

Proceeds—Company will

(jointly), and W. C. Langley & Co.

and

(Jointly). Offering—Price to public
by amendment. Dec. 23 the recapitalization plan was re¬
jected by the SEC and the company was allowed 30 days
which

file amendments
providing for additional
payments to the various classes of security holders in¬

volved.

Air

Lanes, Inc., Portland, Me.

Oct. 9 (letter of notification) 15,000 shares each of
pre¬
ferred and common.
Offering price, $10 a preferred
share and 1 cent a common share.
If offerings are made
In the State of Maine, they will be made by Frederick
C. Adams & Co., Boston.
To complete plant and equip¬
ment and to provide working capital.
•

Ail-American

Drinks

Corp.,

New York

Jan. 15 (letter of notification) 2,050 shares ($1 par) stock.
Price—$1 a share. No underwriting. For operation of
business.

American Broadcasting; Co.,
June

Inc., N. Y.

filed

950,000 shares ($1 par) common stock.
Underwriter—Dillon, Read & Co. Inc., New York. OfferIng—A maximum of 100,000 shares may be sold by com-,
pany to persons, firms, or corporations with whom the
corporation had network affiliation agreements on March
81.

The remainder will be offered
publicly. Price by
amendment. Proceeds—To prepay hbtes payable to ac¬

quire radio station WXYZ* to construct broadcast trans¬
mitter for station KGO at San Francisco and for

capital.
American

Building Corp.,

Dover,

working

derwriting—No underwriting.
offered for subscription to

$1).
Un¬
Offering—Stock will be

common
stockholders in
of one additional share for each two
shares
Unsubscribed shares will be offered for
subscrip¬
tion to officers and directors of the
company Price—By
amendment.
Proceeds—Working capital.

the ratio

held.

Offering in¬

definitely postponed.

Bhare of

Underwriter—E. M. Fitch & Co., Phila¬
Proceeds—For additional machinery, working
purposes.

ferred stock.

Underwriter—White, Weld & Co.

Price

Proceeds—Net proceeds initially will
be added to general funds, however, the
company antici¬
pates it will use the funds for its building and expansion
program.

Offering date indefinite

American

Gas

Electric

Co.,

New York

13 filed

840,057 shares ($10 par) common, owned
by Electric Bond & Share Co., parent.
Underwriter—
None.
Offering—The shares will be offered for sub¬
scription to Bond & Shares common stockholders in the
ratio

of .16 of a share of American Gas common for
share of Bond & Share common held.
Price by

each

amendment.

Proceeds—Proceeds go to the selling stock¬

holder.
]

; ;

S#:;

•

American Locomotive Co., New York
July 18 filed 100,000 shares each of $100 par prior pre¬
ferred stock and $100*par convertible second
preferred
ttock. Underwriting—Union Securities Corp., New York.
Price

Armour and Co., Chicago
July 12 filed 350,000 shares (no par) cumulative first
preference stock, Series A; 300,000 shares of convertible
second preference
stock, Series A, and 1,355,240 shares
common stock (par $5).
Underwriter—Kuhn, Loeb &
Co., New York.
Offering—The 350,000 shares of first

preference stock will be offered in exchange to holders
of its 532,996 shares of
$6 cumulative convertible prior
preferred stock at the rate of 1.4 shares of first
prefer¬
ence stock for each share of
$6 prior preferred. Shares
of first preference not issued in*
exchange will be sold
to underwriters. The
300,000 shares of second preference
stock will be offered
publicly. The 1,355,240 shares of
common will be
offered for

subscription to common
stockholders of the company in the ratio of onMhird
of a new share for each common share
held.
Unsub¬
scribed shares of common will be
purchased by the
underwriters.
Price—Public offering prices by amend¬
ment.
Proceeds—Net proceeds will be used to retire all
unexchanged shares of $6 prior stock and to redeem Its
outstanding 7% preferred stock.
George Eastwood, President, in letter to
stockholders,

Dec. 22 said "we have come to the
conclusion it will
not be necessary to issue
any additional shares of com¬
mon stock" as
part of

company's refinancing plan, m

amendment.

Proceeds—Net

Artcraft Hosiery Co.,
Philadelphia
Sept. 27 filed 53,648 shares ($25 par) 4Y2% cumulative
convertible preferred and
150,000 shares ($1 par) com¬

proceeds, with

It also

ance

pre¬

by amendment.

Jan.

June 5 filed 16,197 shares of common stock
(par $5).
Underwriters—Rauscher, Pierce & Co. Inc., and E. H.
Rollins & Sons Inc.
Offering—Stock will be offered to
the public. Price by amendment.
Shares are being sold
by six stockholders.

mon.

American Colortype Co., Clifton, N. J.
Aug. 12 filed 30,000 shares ($100 par) cumulative

...

Austin Brothers,

•,

upon conversion of

covers

shares of

common

reserved for issu¬

preferred. Underwriter—New-

burger & Hano, Philadelphia. Price—$25.50

preferred

share and $12 a common share.
Proceeds—Company will
receive proceeds from the sale of all of the
preferred
and 100,00 shares of common. The

remaining 50,000
shares of common are being sold
by three stockholders.
Estimated net proceeds of $2,300,000 will be used
by
the company to pay off bank notes of about
$1,100,000
and to purchase additional
machinery and equipment
in the amount of $1,200,000.

Atlantic

Offering date indefinite.

proceeds will be added to capital.
Bachmann Uxbridge Worsted
Corp. '
'
Nov. 27 filed 45,000 shares of 4%
preferred stock (par
$100) and 200,000 shares of common stock
(par $1Y
,

Underwriters—Kidder, Peabody & Co.

and Bear, Steam®
Proceeds—Will go to selling stockholders. Price
I
by amendment. Offering of preferred at end of
& Co.

Barney & Co., New
Offering—Stock will be offered for subscription

York.
to

common

stockholders

the

basis

one

preference stock for each nine shares held.
Unsub¬
scribed shares will be sold to the underwriters who will
reoffer it to the public.
Price by amendment. Proceeds
—A maximum of $15,540,000 of the net
proceeds will be

applied to redemption of the company's cumulative pre¬
ferred stock, convertible 4% Series A, at
$105 a share.
The balance will be added to general funds for
corporate
>

Basic Food Materials, Inc.,
Nov.

(letter of notification) 5,000 shares (no par)
common, to be offered to stockholders; 295 shares of
($100 par) preferred, 4,750 shares (no par) common and
$50,000 10-year 5% debenture notes, all to be offered to f
the public. Prices—$5 per common share to
stockholders;
$10 per common share to public, $100 per preferred share >

underwriting.

To increase

Beaunit

Mills, Inc., New York

Sept, 27 filed 180,000 shares ($2.50 par) common. Under¬
writer — White, Weld & Co., New York. Price — By
amendment. Proceeds—Of the

total, 140,000 shares

C.J. DEVINE

| Berbiglia, Inc.;; Kansas City, Mo.
Sfsph 12 (letter of notification) 41,000 shares of 5%
cumulative convertible $6 par preferred. Offering
price,
$0 a share. Underwriter—Estes, Snyder & Co., Topeka,
Kans. To pay

outstanding indebtedness and expenses and
City, Mo. Offer*

to open five additional stores in Kansas

ing postponed indefinitely.

;

Berg Plastics & Die Casting Co., Inc.

(1/31)
(letter of. notification) 75,000 shares (10c par>
common.
Price-^$4 a shar,e. Underwriter—E. F. Gilles¬

Oct. 31

pie & Co.,;Inc.
tools, and

Proceeds—For acquisition of machinery,,
raw^aterials, and for working capital.

Blumenthal

(Sidney)

Underwriting

None.

—

Proceeds—For

reimbursement

company's treasury for funds expended in
demption of 3,907- shares of 7% cumulative
ferred

re*

pre¬

April 1, and for funds deposited in trust for

redemption on: Oct. 1 of remaining preferred shares<Al*
though it was proposed to offer the stock for subscription to stockholders at $10 per share,
company on SepL
20

decided to withhold action at this time.~

Book-of-the-month Club,
Oct.

filed

300,000

Pittsburgh

Chicago

Chicago and other cities
I

||-■r'Uiit'

III

11'

null

fciHpa-"*"1-■^

''Si—

'''

'y<'"

,
1

—

•

Boston

•

Cincirtnorf

($1.25 par)

capital stock.

ing capital to be used for expansion of inventories of
paper

other

and

raw

materials

and

book

inventories.-

Offering date indefinite.

Sept, 10 filed 30,000 shares ($50 par) 5% cumulative
preferred and 500,000 shares ($1 par) common. Under¬
writers—Paul H. Davis & Co. and Stroud & Co., Inc.
Offering—Preferred will have non-detachable stock;
purchase warrants for purchase of .30,000 shares of com*
mon stock of the total common, 375,000 shares will he
offered for sale for cash. 30,000 shares are reserved for
Issuance upon exercise of warrants attached to preferred
and 95,000 shares are reserved for issuance upon exer¬
cise of outstanding warrants. Price—By amendment.

Proceeds—Net proceeds, together with other funds, will
V ;r (Continued on page 486) ;
>

Underwriters and Distributors

Corporate and Municipal
Securities

Kidder, Peabody ^ Co.

HAnov«r 2^727.

Philad6tphio X fHhburgh « CleV0lan<l
Sf. toui* * Sail Francisco • : ■

■■

Inc., New York

Underwriter—Eastman, Dillon & Co., New York. Offer¬
ing—Of the total, the company is selling 100,000 shares
and six stockholders, including Harry Scherman, Presi-j!
dent, and Meredith Wood, Vice-President, are selling
the remaining 200,000 shares.
Price by amendment.
Proceeds—Company will use its net proceeds for work¬

New York

"f"

& Co. Inc., New York

Aug. 30 filed 119,706 shares (no par) common and sub*
scription Warrants relating to 30,000 shares thereof;

CO.

*■-*

Founded 1865

Members of the
New York
,

are

being sold by St. Regis Paper Co., New York, and the
remaining 40,000 shares are being sold by I. Rogoskv
President of Beaunit Mills, Inc.

Municipal Bonds

48 WAIL ST.v NEW YORK 5, N. Y.

Boston

■"!

The

FIRST BOSTON

■

Cleveland, Ohio

—

United States Government Securities
State and

be withdrawn

may

☆
-SPECIALISTS IN

Corporate and Public Financing

common

Boston Store of Chicago, Inc.

Refining Co., Philadelphia

Oct. 29 filed 296,000 shares
($100 par) cumulative pref¬
erence stock.
Underwriter—Smith,

☆

Dallas, Tex.

Jan. 15 (letter of notification) 500 shares of
$100 par
capital stock.
Price—$110 a share.
No underwriting. >
The offering is made to employees of the
company and

and debentures at face.

common.

delphia.
capital and other corporate

refining,
transportation and marketing facilities. Offering tempor¬
arily postponed.
:

working capital.

Arkansas Western Gas Co.

Del.

Nov. 5 (letter of notification)
20,000 shares each ($10
par) 5% cumulative preferred and no par common. Price,
$10 a unit consisting of one share of preferred and one

purposes including repayment of obligations, acquisition
of additional production, and expansion
of

January;

American Zinc, Lead &
Smelting Co., St. Louis
Sept. 6 filed 336,550 shares common stock (par

use

$1,025,000 of proceeds of debs, for payment of an
Indebtedness to Bankers Trust Co., New York. Balance,
will be added to working capital. Offering postponed.

a;-;v^/•«*?•;

The

First Boston Corp.

Aug. 22 filed $1,500,000 of 5% sinking fund debentures,
due 1961, and 50,000 shares ($1 par) common stock.
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
& Co., Chicago. Offering—The debentures will be of¬
fered publicly. The common shares will be issuable
upon
the exercise of stock purchase warrants for purchase of
common stock at $2 a share above the bid
price of such
common on the effective date of the
registration. Com¬
pany will sell warrants for 25,000 common shares to the
underwriters at 10 cents

INDICATES ADDITIONS SINCE
PREVIOUS ISSUE

NetO York and Boston Stock Exchanges

Boston

Pbiladsl^hia

Chicago/,

;

timeOMM

486

Thursday* January 23, ;1947-

Bids Rejected—Standard

Shares will be offered for exchange for

Gas & Electric Co. rejected
June 25 two bids for the purchase of the stock as un¬

NEW ISSUE CALENDAR
(Showing probable date of offering)

•

3 p.m.

(EST)
Equip. Trust
Cheasapeake & Ohio Ry.
Noon (EST)
Equip. Trust
Cincinnati, New Orleans & Texas Pacific
3 p.m. (EST)
Equip. Trust
Pennsylvania RR
—.Equip. Trust
-

Ctfs.

Jan.

Ctfs.
Ctfs.

and

Collateral Loan

Common

Sxone <Jo

Common

Flamingo Intl. Corp._

Common
Common

Neville Island Glass Co. Inc

Pref. and Common

Common
Inc.—Pref. and Common
Debentures

Firestone Tire & Rubber Co
v

January 29, 1947

General Phoenix Corp
Seaboard Air Line Ry.

Debentures

Noon (EST)

Equip. Trust Ctfs.
January 30, 1947

Common

February 1, 1947

—

Bonds

(Continued from page 485)

be used to pay the company's 2% subordinated note in
the principal amount of $5,268,750 and accrued interest.

($1 par) common. Under¬

writer—-Van Alstyne, Noel & Co., New York. Price—By
amendment. Proceeds—Stock is being sold by share¬
holders who will receive proceeds.

(Harry), Inc., Wilmington, Del.

Sept. 25 filed 12,500 shares ($25 par) 4%% cumulative
convertible preferred stock and 50,000 shares (200 par)
common stock. Underwriter
C. K. Pistell & Co., Inc.,
New York. Price
$25 a share for preferred and $11
a share for comriion* Proceeds—7,000 preferred shares
are being
sold by company, the remaining 5,500 pre¬
ferred shares and all of the common are ^ing sold by
present stockholders. Net proceeds to the company, es¬
timated at $147,500, will be used to prepay to the ex¬
tent possible outstanding $149,300 mortgage liabilities.
Offering date indefinite.
—

working capital.

•

Union Gas Co.

May 3 filed 70,000 shares of cumulative preferred stock
($100 par). Underwriters—To be filed by amendment.
Bids Rejected—Company July 23 rejected two bids re¬
ceived for the stock.
Blyth & Co., Inc., and F. S. Moseley & Co. and associates submitted a bid of 100.06 for a
4.30%

dividend.

Harriman

Ripley

Co. and Mellon
dividend. In¬

Securities Corp. bid 100.779 for a 4.40%

definitely postponed.
California Oregon Power Co.

writers—Names

amendment.

Probable bidders in¬

clude Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man

Ripley & Co.

Standard

Gas

and

Offering—Stock is being
Electric

sold by
Co., parent, of California.

UNDERWRITERS—DISTRIBUTORS—DEALERS

Industrial, Public Utility, Railroad
and

Municipal Securities

Members New York Stock Exchange

NEW YORK
PHILADELPHIA

ALBANY
PITTSBURGH

CHICAGO
TRENTON

Co., Detroit,

l^ch.

—

holders
Boston.

who will
For

receive

Durasite Corp.,
Oct. 11

proceeds.

working capital.

Clearwater, Fla.

(letter of notification) 99,000 shares of common

•

purchase warrants covering 50,000 shares of com¬
mon. Offering—Price $3 a common share and five cents
a warrant.
Underwriter—Amos Treat & Co., New York.
and

Elevator Co., Denver, Colo.

For

Aug. 20 filed 70,000 shares ($50 par) cumulative con¬
vertible preferred stock.
Underwriter—Union Securi¬
ties Corp., New York.
Price by amendment. Proceeds
—Prior to the proposed issue of preferred stock, the
company plans' to call its $3 cumulative convertible pre¬
ferred stock for redemption at $55 a share plus accrued
dividends.
Funds for the redemption will be supplied
by a short term bank loan. Proceeds from the sale of
preferred, together with other funds, will be used to
repay the bank loan. Indefinitely postponed.

machinery,

plant renovation and working capitaL

Offering date indefinite.
Edelbrew Brewery,
Dec. 31 filed 5,000

Inc., Brooklyn, N. Y.

shares ($100 par) 5% non-cumulative

preferred. Underwriters—None. Offering—To be offered
at par to customers, officers and employees of the com- J
pany. Proceeds — For corporated purposes including :
modernization and improvement of the manufacturing ;
plant and machinery and

equipment.

Empire Millwork Corp., New

Inc.

York (1/30-31)

Aug. 28 filed 50,000 shares of $1.25 cumulative convert!-;
150,000 shares ($4 par) 30c cumulative
ble preferred stock, (par $25) ; and 150,000 shares of .
convertible preferred stock, convertible into common
common stockI (par $1). Undcfti^itei^Van Alstyhe* •
stock in the ratio initially of 1%; shares of common for
Noel & Coi Proceeds—Corporation will receive thejpro- *
each share of preferred. Underwrlter-^FIpyd D, Cerf
ceeds from the issuance of 50,000 shares of the common ?
Co., Inc., Chicago. Offering—Company offered 59,585%
stock which, will be used tdi increase productive capacity* ^
shares for subscription to present common stockholders
add new lines of products and expand the business. The .
of r:ecor(iAugYR nL$4^a share im the ratio^of one share
I remaining 100,000 shares orcommoh stocksarid lhej?re~|
of preferred for each share of common held. Rights
; ferred shares will be sold by present stockholders. Of-4|
expired Aug. 20. Stockholders subscribed for 735 shares.
The offering to common stockholders excluded the two j fering temporarily postponed.
principal stockholders who waived their rights to sub¬
Eversharp, Inc., Chicago
scribed The -remaining 90,414% shares and 58,850% | •
Jan. 13 (letter of notification) such number of shares of ]
shares not subscribed to by common stockholders will
be offered to the public through underwriters. Price—$5 ; ($1 par) common stock as will approximate but not; f
exceed $100,000.
The offering is on behalf of Martin L.'i
a share. Proceeds—Approximately $50,000 for payment
Straus, II, President of the company. The price will be )
of Federal taxes; $250,000 for payment of Lincoln-RFC
based on the market price.
No underwriters. Proceeds
loan; $50,000 as a loan to Palmer Brothers Engines, Inc.,
June 26

filed

Hemphill, Noyes CSt, Co.
;

•

($1 par) common. Under¬
writer
C. G. McDonald & Co., Detroit. Price — $5.50 ;
a share. Proceeds — Stock is being sold by six share¬

Merchantviile, N. J. (1/24)

Products

Printers, Inc., St. Paul,j Minn,

Detroit Typesetting

(letter of notification) 2,000 shares of 7% cumu¬
stock (par $100). Underwriting none.
Price—$100 per share. Working capital, acquisition of
land, buildings, machinery, etc.

Aircraft

Railway & Terminal Co.

Sept. 25 filed 70,920 shares

Jan. 20

Columbia

May 24 filed 312,000 shares of common stock (no par).
Stock will be sold through competitive bidding.
Under¬

(Texas)

27 filed

purchase of additional machinery and for expansion of *
plants.

lative preferred

Colorado Milling &

250,000 shares ($1 par)

(letter of notification) 1,900 shares ,<$10 par)
common.
Price—$50 a share. No underwriting. Offering will be limited to shareholders and employees. Proceeds will be used for replacement of present machinery,

(2/3-7)

—

Colonial Packing Co.,

Capital Corp., Wilmington, Del.

filed

DeLuxe Check

Jan.

August 15 filed 300,000 shares ($1 par) common stock.
Underwriters—Emanuel, Deetjen & Co., New York. Price
by amendment. Proceeds—Company will receive pro¬
ceeds from the sale of 150,000 shares and Generoso
Pope,
President of company, who is selling the remaining 150,000 shares will receive proceeds from these shares. The
company will use its proceeds for payment of mortgage
notes, open account indebtedness and for purchase of
additional equipment. Any balance will be added to
working capital.
•

(1/28-29)

by amendment.
Probable Underwriters—Kidder, Pea- body & Co., Merrill Lynch, Pierce, Fenner & Beane;i
Rauscher, Pierce & Co. Price by amendment. Proceeds >
—Proceeds will be applied to the redemption of 3,843 \
shares of 7% preferred stock and for purchase of new ,
equipment and for construction as part of its modem- >
ization and expansion program.

Washington,

Inc., N. Y.

New York

Inc.,

40,000 shares ($25 par) 5% participating
preferred stock.
Underwriters—Names to be supplied

penses of Bermuda route. The balance will be used to in¬
crease

Dallas

D. C. and Hornblower and Weeks, New York. Price
by
amendment. Proceeds—Net proceeds will be used to
pay
off a $550,000 loan to the Continental Bank & Trust Co.
of New York; purchase equipment and development ex¬

Colonial Sand & Stone Co.,

Inc., Philadelphia

| Brooklyn (N. Y.)

Crown

Nov.

Airlines, Inc., New York
Redpath,

Mines,

will be used for mining operations.

Oct. 25 filed 150,000 shares ($1 par) capital stock. Under¬

L. I. City, N. Y.

300,000

Cyprus Mines, Ltd., Montreal, Canada

offered for subscription to common stockholders at
one share for each 7% shares held.
Unsubscribed
shares will be sold to underwriters.
Price

Parker

filed

May 31 filed 500,000 shares of common stock (par $1)* »
Underwriters—Sabiston-Hughes, Ltd., Toronto.
Offer- :
ing—Shares will be offered to the public at 75 cents *;
share.
Proceeds—Net proceeds, estimated at $300,(KK\ :

rate of

Offering date indefinite.

Braunstein

Co., Room 3, 16 Wall
(EST) Jan. 27.

Co., Inc., Fort Wayne, Ind.

writer—Auchincloss,

February 5, 1947
Norwich and Worcester RR. Noon (EST)

class A common.
will act as
selling agent. Price—By amendment. Proceeds—Net pro¬
ceeds will be used as capital for company's subsidiaries
engaged in the small loan or personal finance business.

Aug. 21 filed 90,009 shares (no par) common. Under¬
writer—None.
Offering—Common shares initially will

Colonial

Equip. Trust Ctfs.

—

Underwriter—Hodson & Co. Inc., New York,

Preferred

(EST)
N. Y., Chicago and St. Louis

Sept. 27 filed 268,875 shares

•

Jan.

ment.

N. Y. State Electric & Gas Corp.

Bowman Gum,

a.m.

preferred shares

(letter of notification) 270,000 shares of common
stock (par $1). Underwriter—Newkirk & Banks, Inc.
Price—$1 per share. Proceeds—Property improvements,
exploration, purchase of machinery, working capital, etc.

received at office of Bankers Trust

to 11

Under¬
share.

for general funds.

Dec. 9

West Utilities Co. and American Public Service
Co., not
exchanged for shares of the merged corporation. Under¬
writers by amendment. Possible bidders:
Glore, Forgan
& Co.; Lehman Brothers-Lazard Freres & Co.
(jointly);
Smith, Barney & Co.-Harriman, Ripley & Co. (jointly);
Blyth & Co., Inc., Stone & Webster Securities Corp. and
First Boston Corp. (jointly). Price—By amendment. Bids
to be Invited—Bids for the purchase of the stock will be
up

Cristina

sufficient number of such shares to provide funds
retiring the preference shares of Central & South

by amend¬
Proceeds—Working capital, etc. Offering indefin¬
itely postponed.

February 4, 1947

;

Inc.

common.
$8.25 per

shares ($5 par) common stock.
Underwriters—First Boston Corp., New York.
Price by
amendment.
Proceeds—Go to Joseph Levy, President,
selling stockholders. Offering date indefinite.
Aug.

(1/27)

Helicopter Aircraft Service Inc._Pref and Common

RR.

Crawford Clothes, Inc.,

Aug. 30 Central & Southwest Utilities Co. (name changed
by post effective amendment to Central & South West
Corp.) filed for a maximum of 2,000,000 common shares
(par $5). Sealed bids will be received for the purchase

Central Soya

Berg Plastics & Die Casting Co

x*'

share in Canadian funds.

Street, New York,

January 31, 1947

Noon

Continental-United Industries Co.,

Proceeds—For a variety
in connection with exploration, sinking of
shafts, diamond drilling and working capital.

Corp.

Aug. 2 filed 150,000 shares ($1 par)
writers—Aronson, Hall & Co. Price
Proceeds—To repay demand loans and
(Originally company filed for 80,000
par $25 and 350,000 common shares.)

Pref. and Common

Empire Millwork Corp

equipment

purposes

for

January 28, 1947
Cristina Mines, Inc._
Helene Curtis Industries,

For

Mines, Ltd., of Toronto,

Central & South West Corp.

& South West Corp

Vogelbach Associates, Inc

New York

June 24 filed 400,000 shares of common stock.
Under¬
writer—No underwriters.
Offering—To the public at

January 27, 1947
&

Corp.,

working capital.

Progressive Air Service, Inc.---Pref. and Common

Colonial band

—

Securities

Carscor Porcupine Gold
Ontario

January 25, 1947

Central

stock.

Mitchell

Car-na-var

(letter of notification) 132,500 shares ($1 par)
common and 35,000 warrants for purchase of common
one year after present public offering.
Price—$2 a com¬
mon
share, one cent a warrant.
Underwriter—L. D.
Sherman & Co., New York.
For working capital.
Nov.

(letter of notification) 32,950 shares ($5 par)'
Price
$6.50 a share.
Underwriter —

capital

Preferred
--Common

Continental

Carney Fasteners, Inc., Columbia, S. C.

Ctfs.

January 24, 1947
Colonial Packing Co
Heyden Chemical Corp.--—
Missouri-Kansas-Texas RR.

amendment. Proceeds—To redeem at $110 a
share, plus divs., all unexchanged old shares.

Price by

when market conditions improve.

January 23, 1947
Alabama Great Southern RR.

$5 cumulative

on a share for share basis, plus cash adjust¬
ment. Shares not exchanged will be sold to underwriters.

preferred,

satisfactory. Blyth & Co., Inc., and First Boston Corp.
bid of $28.33 a share, and Harriman
Ripley & Co. bid
of $24,031 a share.
Stock will again be put up for sale

INDIANAPOLIS
WASHINGTON

a
subsidiary; balance for purchase of machinery and
equipment and working capital.

■!

Madison* Wis* \
Sept. 23 filed 16,071 shares ($109 par) $4 cumulative I
Commonwealth Telephone Co.,

Paine, Webber, Jackson
Curtis and Stone & Webster Securities Corp. Offeringpreferred.

Underwriters

—

to the selling stockholder.
Falk Mercantile Co., Ltd.,

Boise, Ida.

Oct. 21 (letter of notification) 3,000 shares of 4%% preferred ($100 par).
Price—$100 a share. Underwriter—;

i.
Childs, Boise, Idaho. Proceed#
to retire debentures and for expansion purposes.
v %

i' Richard Meade Dunlevy

...

Volume 165

vy/.-

Number 4562

Farquhar

(A. B.)

Co.y

(THE COMMERCIAL & FINANCIAL CHRONICLE

Yorj^^E.^

Sept. 26 filed 30,000 shares ($25 par) cumulative

con-

•vertible preferred; 45,000' shares ($5 par> common;, and
An unspecified number of common shares to
permit con¬

version .of the preferred. Underwriter-~Stroud & Co;,.
'Inc.,; Philadelphia; Price—By amendment. Proceeds' mm
.Proceeds will be used to redeem
$355,350 4%%

sinking
Aug. 1, 1957, to pay off
certain contracts and chattel
mortgages of $72,000 and
$800,000 to reduce principal on outstanding bank loans.
fund

mortgage

Federal

Bake

Shops,

Inc., Davenport,

la.

Alstyne Noel & Co.

being sold by five stockholders who will

receive the proceeds.

Gordon Foods,

Films Inc., New York

200,000 shares reserved for conversion of class A. Each
of

class

.shares of

stock

common

stock.

initially convertible

into

Firestone Tire & Rubber Co.

(1/28)

♦Jan. 7 filed $25,000,000 25-year 2%% debentures due 1972.

Underwriters—Harriman Ripley & Co. Inc.; New York,
Price—By amendment.
;Proceeds—For redemption of 250,000 shares out of 414,000 outstanding shares of 4'% % preferred
(cumulative)
at $105 a share plus accrued dividends.
;

and Otis and Co. Inc., Cleveland.

First Acceptance

Jan.

Corp., Minneapolis,

Minn.

(letter of notification) 3,000 shares 5%
ferred.
Price—$100 a share.
No underwriting.
.additional working capital.

pre¬

For

Helene Curtis Industries, Inc.

Co., New York, are principal underwriters.

par)

Underwriter—Simons, Unburn & Co. Offering—Com¬
pany will offer 40,000 shares of preferred to employees
at $9.50 a share and 20,000 shares to the public at $10 a
share.
Proceeds—To be added to general corporate

share. Proceeds^—Company will apply $350,000 of the

proceeds to purchase^ the

Driscoll

Food Products,

Foreman Fabrics Corp.,

New York

July 29 filed 110,000 shares ($1 par) common stock, all
outstanding.' Underwriters—Cohu & Torrey.
Price by
amendment.
'•

Fox Brothers

Jan.

Manufacturing Co., St. Louis, Mo.

(letter of notification) $290,000 of 4V2% serial
debentures, due serially 1948-1957. Price—$1,000 a unit.

Underwriter—Dempsey-Tegeler & Co., St. Louis.
•

cecds—To

redeem

mortgage

Pro-

indebtedness,

preferred
stock, pay bank loan and to provide additional working
capital.
Fresh Dry Foods, Inc.,
Columbia, S. C.
Aug. 30 filed 450,000 shares (100 par) common. Under¬
writer—Newkirk & Banks, Inc. Offering—Of the total
company is selling 350,000 shares and two stockholders,

Roland E. Fulmer and Louis H. Newkirk,

Jr.,

are

selling

the remaining 100,000 shares. Price—$6 a share. Proceeds
—For purchase of sweet potatoes, plant
expansion, addi¬
tional storage facilities, research and development work
and working capital.
Offering date indefinite.
•

(Theodore)

Gary & Co., Kansas City, Mo.

(letter of notification) $300,000 of series C
porate incpme notes $5 a unit. No underwriting.
.additional working capital.

•

Sept. 3

(letter of notification)

12,000 shares

($1 par)

Underwriters—Kalman & Co., Inc., St. Paul.
Price—$25 a share. Proceeds — For improvement and

common.

modernization program.

Grolier Society,

General

Phoenix Corp., New York

(1/29)

Proceeds—Company will
.

use

part of the proceeds to

pur-

chase 25,000 additional shares ($5 par) capital stock, at

.$10 each, of the Stuyvesant Insurance Co., a subsidiary.
The balance will be added to general funds.
...

Glencair Mining Co.

Funds).

Proceeds—For

mine

development.

Glensder Textile Corp., New York
Aug. 28 filed 355,000 shares ($1 par) common, of which
55,000 shares are reserved for issuance upon the exer-

| else of stock purchase warrants.
Alstyne, Noel & Co.

Underwriter

—

Van

Offering—The 300,000 shares

consists of all the outstanding common stock of
Steel Products Corp. (Ohio).
.
*

Offering indefinitely postponed.

issued and outstanding and
being sold for the account

Company has also issued 55,000

.stock purchase warrants to the
selling
-10 cents

-1949*

stockholders at

share entitling them to
purchase up to Aug. 1,

common stock of the company

at $11 a share. Price

by amendment. Offering temporarily postponed.

Hercules
* '

}

Inc., New York
•

Hey den Chemical Corp,

(1/24)

Jan. 17 (letter of notification) 12,000 shares of common
stock (par $1), or such lesser number of shares as shall
not have a market value in excess of $300,000 on date

shares of

common

Byllesby and Co., Inc. Offering—Underwriters to
purchase from the company 18,500 shares of preferred
and 20,000 shares of common; and from Fred P.
Murphy

Hollywood Colorfilm Corp., Burbank, Calif.

and J. C. Graham, Jr.,
100,000 shares of issued and out¬
standing common. Prices, preferred $100 a share; com¬
mon
$14 a share.
Proceeds—To retire $6 cumulative
preferred, pay notes, discharge a loan. Indefinitely post¬

Oct. 16 (letter of

notificaiitoh) 119,500 shares of ($1 par)
capital. Price, $3 a share. No underwriting contract, how¬
55,000 shares to be issued to or through H. R. O'Neil
of Buckley Bros;, Los. Angeles, will be sold by one or
more of the following firms; Buckley Bros.; Durand &
Co., Tucson, Ariz.; J. Earle May & Co., Palo Alto, Calif.
ever,

Gulf Atlantic Transports Co., Jacksonville, Fla.
Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—-Blair & Co. Offering—Stock is being of¬
fered to present shareholders at $3 per share.
Holders

Hy-Grade Supply Co., Oklahoma City {

Jan. 20 filed

Utilities Co.,

Baton

Rouge, La.

common.
Under¬
Offering—The shares will be offered for

subscription to common stockholders of Gulf States'
parent, Engineers Public Service Co., New York.
The
subscription basis will be one share qf Gulf States stock
for each share of Engineers common held.
Price—$11.50

•

share.
Proceeds—Purpose of offering is to carry out
provision of dissolution plan of Engineers approved by
the Commission.

Idle Hour Country Club, Lexington,

Jan.

;
f

| -T«
r

notes and for working capital.

1,909,968 shares (no par)

writer—None.

preferred and 50,000 common stock purchase warrants,
Price—$5.50 a preferred share and 2 cents a warrant.
Underwriter—Amos Treat & Co., New York.
To exercise options for purchase of five variety stores, to retire

approximately 200,000 shares have agreed to waive
Offering date indefinite.
Gulf States

Dec. 3 (leter of notification) 54,350 shares of cum. conv.

their preemptive rights.
a

offering. The shares are to be issued to Sterling Drug,
Inc., together with $354,000 cash in exchange for 104,959
shares of common stock of Nyal Co. (Mich.). The stock
is to be resold immediately to A. G. Becker & Co., Inc.
for public distribution. Price at market (about $25).

stock at $16 a share at the ratio of 3%

shares for each preferred share held; and 120,000 shares of $1 par common stock.
Underwriters—H.

common

Ky.

(letter of notification) $300,000 first mortgage
3% income bonds, due 1996.. Price—$1,000. a unit.: No^
underwriting. For purchase of property and improve-^
^

ments.

Hammond Instrument Co., Chicago
Aug. 8 filed 80,000 shares ($1 par) common. Under¬
writer: Paul H. Davies & Co,., Chicago. Price by amend¬
ment.
Proceeds—Net proceeds will be used to rddeem
its outstanding 6% cumulative
preferred stock at an
estimated cost of $213,258, exclusive of accrued divi¬
dends.
It also will use
approximately $402,000 toward
the purchase of a manufacturing plant in
Chicago; bal¬
ance for
working capital. Offering date indefinite.
Hartffiefd Stores,
June

filed

100,000

Inc., Los Angeles
shares

($1 par) common stock.
Underwriters—Van Alstyne, Noel & Co., New York, and
Johnston, Lemon & Co., Washington, D. C.
Offering—
To be offered to the public at $8 a share.
ProceedsCompany is selling 60,000 shares and stockholders are
selling 40,000 shares. The company will use its proceeds
to pay the costs of opening additional stores and to ex¬
pand merchandise in its existing stores. Offering tem¬

Illinois Power Co., Decatur,

III.

June 17, filed 200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.

Underwriters—By

competitive

bidding.

Probable

bid¬

ders include Blyth & Co., Inc.; The First Boston Corp.;
W. E. Hutton & Co. Proceeds—Net proceeds from the

sale of preferred will

be used to reimburse the

com¬

pany's treasury for construction expenditures.

Net pro¬
ceeds from the sale of common will be applied for re¬
demption of 5% cumulative convertible preferred stock
not converted into common prior to the redemption
date. The balance will be added to, treasury funds. >
Company has asked the SEC to defer action on its fi¬
nancing program because of present market conditions.
•

Inland Airways,

Jan.

Inc., Walla Walla, Wash.

(letter of notification) 12,500 shares ($10 par)
common.
Price—$10 a share.
No underwriting.
For
operation of business as passenger and freight air carrier.
International Dress Co., Inc., New York

Aug. 28 filed 140,000 shares of

common stock (par $1).
Offering—Price $10 per share.
stockholders will receive proceeds.

Underwriter—Otis & Co.
•

Hathaway Bakeries, Inc., Cambridge, Mass.
15 filed

120,020 shares

($1 par) common. Under¬
writers—James S. Borck, Bridgeport, Conn.; George E.
Drake, Pittsburgh, Pa.; William E. Stanwood, Boston;
and Seaboard Allied Milling
Corp., also of Boston. Offer¬
ing—Of the total, the company will offer 45,020 shares
to officers and employees of the
company for subscrip¬
tion at $8.50 a share.
The balance of 75,000 shares will
be offered for subscription at $8.50 a share to common
stockholders

on the basis of one-fourth of a new com¬
share for each share held and to holders of certifi¬
cates for preferred, Class A and Class B stocks on the

Proceeds—Selling
Offering date indefinite.
Inter-Mountain

Telephone Co., Bristol, Tenn« r

Dec. 19 filed 47,500 shares ($10 par) common.
Under¬
writers—Headed by Alex. Brown & Sons, Baltimore, Md.

Offering—The shares will be offered for subscription to

shares will be sold to underwriters. Proceeds—1

scribed

Proceeds will be used to pay off $250,000 bank
for property additions and improvements.

common

The

one-fourth

new

common

share for

each

share into which their shares has been
changed.

subscription offer will expire Feb. 28. Unsubscribed

shares will be sold to underwriters at
$8 a share.
The
company said the underwriters do not presently intend
to make a public offering of the shares at this time but
that when

they

are

offered they will be sold at the

market price.
The underwriting discount is 50 cents a
share.
Proceeds—Proceeds will be used to
pay a

the

costs

constructing

new

bakeries

portion

Business—Baking business.
+

•

Corp.,

($1 par)

common.

Willow Run,

loan and

Mich.

certificates for 4,750,000 shares

Offering—Exchange of voting trust

certificates for outstanding common^

The trustees under

agreement to be dated Feb. 10 and to expire

Aug. 10,

1949, will be Joseph W. Frazer and Henry J. Kaiser.

Kingfisher Water Co., Chicago
Jan.

Hay ward Lumber & Investment Co., Los Angeles

Kaiser-Frazer

Jan. 20 filed voting trust

Boston,

Worcester, Mass.; Cohoes, N. Y.; and Providence, R. I.

(letter

bonds.

notification)

Price—$1,000

and

$85,000

first

mortgage

$500 per unit.

Under¬

writer-—Metropolitan St. Louis Co., St. Louis, Mo.

For

Jan.,17 (letter of notification) $297,000 of 6% unsecured

payment of $35,000 note and for property additions and

installment notes.

improvements.

For

Price—$100

general corporate purposes.

unit.

No underwriting.

stockholders at $10 a share in the ratio of one
new share for each share held. It is expected that war¬
rants will be mailed to stockholders Jan. 28.
Unsub¬
common

mon

are

of certain stockholders.

Under¬

basis

Ltd., Toronto, Can.

Oct. 2 filed 300,000 shares
($1 par) stock. UnderwriterMark Daniels & Co., Toronto. Price—40 cents a share

(Canadian

New York

July 29 filed 18,500 shares at $4.25 cumulative preferred
stock ($100 par),
with non-detachable common stock
purchase warrants entitling registered holders of shares
of the $4.25 preferred to purchase at any time
64,750

Jan.

Dec. 27 filed $2,000,000 15-year 4% convertible subor¬
dinated debentures, due 1962. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston. Price by amendment.

Hercules Steel Products Corp.,

Price by amendment.
Proceeds—Net proceeds together with a $650,000 bank
loan will be used to repay indebtedness to the Marine
Midland Trust Co., New York.
Business—Hercules was
organized in Delaware May 10, 1946.
Principal asset

Griggs, Cooper & Co., St. Paul, Minn.

cor¬

For

preferred.

conversion

Jan. 16 filed 180,000 shares (10c par) common.

porarily postponed.

Jan. 20

for

writer—Dempsey & Co., Chicago;

Food Fair Stores, Inc., Philadelphia

reserved

plant.

Jan. 20

Aug. 5 filed 60,000 shares ($15 par) cumulative preferred
stock.
Underwriters—Eastman, Dillon & Co. Price by
; amendment.
Proceeds—To be used to redeem 15-year
3%% sinking fund debentures, due 1959; and $2.50 cum'UlattVfc preferred at $53 a share.
Balance will be added
to working capital.
Temporarily postponed*—

common,

funds.

Cincinnati, O;, from its co-partners, John J. Driscoll and
Clarence H. Wolfe, and approximately $400,000- to fi¬
nance an expansion
program of its new Louisville, Ky.,

poned.

(letter of notification) 50,000 shares of common
(par $1). Underwriter, none. Price-^$1. Working
capital and corporate purposes.

(1/28)

lic at $6 a share and the remaining 25,000 shares will be
sold to the principal underwriters for investment at $5

Flamingo International Corp., New York (1/27)
stock

Dec. 5 filed 60,000 shares ($5 par) 50-cent cumulative
convertible preferred,; Series A, and 120,000 shares ($1

Offering—Company will offer 125,000 shares to the pub¬

Underwriters—Herrick, Wad-

-films.

*#■

postponed.

■dell &.Co., Inc;, New York. Offering—To be offered
•publicly at $8.10 a unit consisting of one share of class A
stock and one share of common stock.
Proceeds—$201,000 for retirement of 2,010 shares
($100 par) preferred
stock at $100 a share;
remaining proceeds, together with
other funds, will be used for
production of educational

•

Inc., Atlanta, GO.

150,000 shares ($1 par) cohftfton. tJndeYwriters—Johnston; Lemon $ Co., Washington, D; C„

June 25, filed 100,000 shares
($5 par) class A stock and
•300,000 shares (10 cent par) common stock, of which
share

Proceeds—

Jan. 14 filed

net
■,

Price by amendment.

To selling stockholders. Offering temporarily

Institute,. Inc., Hot Springs, N. Mex.

50,000. shares ($10 par) 5^% cumulative
prior preferred and' 40,000' shares' ($10 par) common.
Underwriting—None* Offering—All preferred and common
will be' offered' publicly.
Price—$10.15 a pre¬
ferred share and $10 a; common share. Proceeds—Pro¬
ceeds will be used to build and equip hotel and health
facilities and to acquire a mineral water supply.

(10c par) common, all issued and outstanding and being
sold by eight selling stockholders;
Underwriters—Van

and Allen &

.Jan. 15 (letter of notification) 3,500 shares of stock. Price
Underwriter—Cohu & Torrey, New York.
are

Health

Dec. 16 filed

bonds,, due

i—At market.
The shares

Glen Industries Inc., Milwaukee, Wis.
July 31 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock series A ($20 par) and 150,000 shares

■

(Continued

on page

488)

•

^
Sii

•

>:3'.;

.(Continued from page 487)-■ :

Dec. 3 filed

1,000,000 shares (no par) common. Under¬
York. Price—70 cents a share,
the underwriting discount will amount to 21 cents a
share.
Proceeds—For exploration and development of
writer—Jack Kahn, New

mining property and for administrative expenses.
•

common

(letter of notification)

2,000

Hill

Bros., St. Louis, acting as agent, will sell stock to Vilas
& Hickey, New York, who will offer it at $11 a share.
Proceeds go to the selling stockholder.
Mada Yellowknife Gold
June

7 filed 250,000

Mines, Ltd., Toronto

shares of capital stock (par 40c).

Undewriters—Mark Daniels & Co. Offering—Stock will
be offered

publicly in the U. S. at 40c

(Cana¬

dian money). Proceeds—Proceeds, estimated at $75,000,
will be used in operation of the company.
•

Mad

River

•

behalf of Andrew S. Knapp, President.

Oil

Morton
17

Northwestern Public Service Co.

Co., Casper, Wyo.

(letter of notification) 750,000 shares (10c par)
Price—25 cents

Underwriter—John

share.

Perry & Co., Denver, Colo.

For development of oil

wells and for working capital.

Mountain States Power Co.
June 6 filed 140,614 shares of common stock (no par).
Underwriters—To be determined by competitive bidding.

Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb
& Co. and Smith Barney & Co. (jointly); Harriman,

Ripley & Co.; The First Boston Corp.

Offering—Shares,
are owned by Standard Gas
& Electric Co. and con¬
stitute 56.39% of the company's outstanding common.
Sale Postponed—Standard Gas & Electric Co. asked for

bids for the purchase of the
sale has been temporarily

Corp., Burlington, Vt.

(letter of notification) $50,000 and $150,000 of
promissory notes, both at 5%. Price—<At face amounts of
$500 and $1,000 respectively.
No underwriting.
To fi¬
nance construction of hotel building.

common.

($1 par)

(Louis A.), Washington, D. C.

Jan.

Louis, Mo.

Knapp-Monarch Co., St.

Jan.

Montague

Jan.

Kiwago GoldMinesLtd., Toronto, Canada

stock on Sept. 4, but the
postponed.

Jan.

15
(letter of notification) 1,560 shares ($1 par)
$4.50 preferred and 2,240 shares ($1 par) common. Price
—$100 a preferred share and $1 a common share.
No
underwriting. Construction of ski lift, clearing of trails

Maine Public Service
June

filed

150,000

Underwriters—Tq

Co., Preque Isle, Me.

($10

determined

■

•

ni:'

<..*

D.
Jan.

(letter of notification) 500 shares ($100 par)
Price—$100 a share.
No underwriting.
For
additional working capital and to complete construction

modulation station.

National Aluminate Corp., Chicago

Sept. 27 filed
mon

and

unspecified number ($2.50 par) com¬

shares. Underwriters—First Boston Corp., New York,
Lee Higginson Corp., Chicago. Price—By amend¬

ment. Proceeds—The stock is issued and outstanding and
is being sold by shareholders. Names of the selling

stockholders and the number of shares to be sold by each
be supplied by amendment.

will

$31

Neville

(letter of notification) 1,200 shares (no par)
50% on behalf of George A. Meyer Finance Co.,

St. Louis; and 50% on behalf of Robert L.
and Marian Blanke, both of University City,

Blanke, Jr.
Mo. Price—

share. Underwriter—Smith-Moore & Co., St. Louis.

Michigan Gas & Elec. Co., Ashland, Wis.
June 24 filed $3,500,000 of series A first mortgage bonds,
due 1976; 14,000 shares ($100 par) cumulative preferred
stock and

120,000 shares ($10 par)

common

stock.

Nugent's National Stores, Inc., New York
21 filed 85,000 shares
($1 par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearharfc
& Co., Inc.
Price, $6.75 a share. Proceeds—Net pro¬
ceeds to the company from 62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred stock; $41,649 to
purchase 100% of the stock of two affiliates, and bal¬
ance $197,000 for other corporate purposes.
The pro¬
ceeds from the other 3,000 shares will go to selling
stockholders. Offering temporarily postponed.

Un¬

Oklahoma Gas and Electric Co.

bidders will include

The

Under¬

bidding.

First Boston

Corp.;

White, Weld & Co.; Lehman Brothers and Blyth & Co.,
Inc. (jointly); Harriman, Ripley & Co.; Kuhn, Loeb &
Co., and Smith, Barney & Co., (jointly). Offering—OH
the total 750,000 shares will be sold by Standard Gas &?
Electric Co., parent and 140,000 shares will be sold by
the company.
Standard's shares comprise its entire
holdings in Oklahoma Gas common. Price—By competi¬
tive bidding.
Proceeds—Oklahoma will use its net pro¬
ceeds to prepay part of its outstanding serial notes.
The
balance will be used for property additions.

Toronto, Can,

shares ($1 par) capital stock,
Underwriter—Tellier & Co., New York. Price—60 centa
a
share. Proceeds—For expenses and exploration and
Jan.

filed

2,000,000

development.
•

Island

(Pa.)

Glass Co.,

Inc.

(1/27)

(letter of notification) 4,000 shares of

Underwriter—Amott

Baker

New

England Gas and Electric Association

July 11 filed $22,500,000 20-year collateral trust sinking
fund Series A bonds, and a maximum of 1,568,980 com¬
mon shares
($5 par).
Underwriters—By amendment.
Bidders may include Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody &Co. (jointly).
Offering—Bonds and common stock are being offered in
connection with a
compromise recapitalization plan
approved by the SEC, on June 24, 1946, which among
other things provides for the elimination of all out¬
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000
of new common shares. Bids for the purchase of the

Co., Portland, Ora.

Pacific Power & Light

common

Co., Inc. Price at
market. Proceeds to selling stockholder.

Meyer-Blanke Co., St. Louis, Mo.
29

its proceeds to redeem

use

Oro Yellowknife Gold Mines Ltd.,

(letter of notification) $250,000 15-year 3%% in¬
come notes.
Price—Par. No underwriting. For general
corporate purposes.

stock.

common,

will

June

National Plumbing Stores Corp., New York

Jan. 15

Jan.

Nov.

Proceeds—The company
old preferred stock.

Probable

common.

of frequency

the company is selling
110,000 shares and the remaining 300,000 shares are being
sold by Bear, Stearns & Co.
Price—By amendment.

Dec. 23 filed 890,000 shares ($20 par) common.
writers—To
be
determined
by competitive

•

Washington,

Broadcasting Corp.,

shares will be sold to un¬

common

derwriters. Of the total common,

(par $1).
Underwriter—Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬
ferred stock at $109 a share plus dividends. Indefinitely

Metropolitan

Co., McKeesport, Pa.

shares and all of the

June 13 filed 250,000 shares of common stock

par) capital stock.
through competitive

bidding.
Probable bidders include The First Boston
Corp.; Kidder, Peabody & Co., and Blyth & Co., Inc.
"(jointly); Harriman Ripley & Co; Coffin & Burr and
Merrill Lynch, Pierce, Fenner & Beane. Proceeds—The
shares are being sold by Consolidated Electric and Gas
Co., parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
Holding Company Act.
f,.<

(G. C.)

Murphy

($100 par) 4J/2% cumulative
preferred and 410,000 shares ($3 par) common. Under¬
writers—The First Boston Corp.
Offering—New pre¬
ferred will be offered in exchange for 39,852 shares (par
$100) 7% cumulative preferred and 6% cumulative pre¬
ferred, on a share for share basis. Only first 26,000 shares
offered in exchange will be accepted. Unexchanged new

Dec. 20 filed 26,000 shares

postponed.

and construction of shelters.

Thursday, January 23, 1947,

!THE COMMERCIAL & FINANCIAL CHRONICLE

'488

July 10 filed 100,000 shares ($100 par) preferred stock.
Underwriters—By amendment. Probable bidders include
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney 9$
Co. (jointly); The First Boston Corp., W. C. Langley & C0.3
Harriman Ripley & Co. Offering—Company proposes to
Issue the 100,000 shares of new preferred for the pur¬
pose of refinancing at a lower dividend rate the 67,00#
outstanding preferred shares of Pacific and the^ 47,800
preferred shares of Northern Electric Co., in connection
with the proposed merger of Northwestern into Pacific,
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged

derwriters—To

be determined

by competitive bidding.

Probable bidders include Blyth &

Co., Inc.; Kidder, Peabody & Co.; The First Boston Corp.; Harris, Hall & Co.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co. Offering—New preferred will be offered
on a share for share exchange
basis to holders of Its
outstanding 7% uprior lien,*$6 no-par prior lien, 6%
preferred and $6 (no par) preferred.
Of the common
stock being registered, company is selling 40,000 shares,
Middle West is selling 57,226 shares and Halsey, Stuart
& Co. Inc., New

York, is selling 22,774 shares. Proceeds
—Michigan will use net proceeds from bonds to redeem
$3,500,000 3%% series A first mortgage bonds, due 1972,
Net proceeds from sale of com¬

at 106.75 and interest.
mon

and from shares of new preferred not issued in ex¬

change Will be used to redeem $375,000 3%% serial de¬
bentures, due 1951, at 101.2 and interest.
redeem

It also will

dividends all unexchanged

105 and accrued

shares of prior lien and preferred stocks.
•

Mitchell

Jan.

Co., Dallas, Tex.

(John E.)

bonds and the common stock which were to be received

the

companyc Aug. 13 were withdrawn Aug. 12.
An alternate plan filed Nov. 25 with the SEC provides

for the issue of 77,625

convertible preferred shares (par

$100) and 1,246,011 common shares (par $8). Under the
proposed plan consolidated funded debt would be prac¬
tically unchanged from that provided in original plan,
the Association to issue $22,425,000 coll. trust bonds.
These bonds and preferred stock may be sold, subject
to

tures

exchange offer, to the holders of present deben¬
a par for par basis. Present preferred would

receive for each share held 8 shares of new common with

rights to subscribe to 5 new common shares at $9 per
share. The present plan does not affect the status of
original plan, but determination as to which will be used
will be left to the SEC and the court.
Hearings on the
alternate plan are

Price.— $200

share.

underwriting.

ing price—To be supplied by amendment.
Pal

Monmouth

Jan.

filed

Park Jockey Club,

16,000

($50

Oceanport,

par)

cumulative

convertible preferred and 483,500 shares (lc par)
*mon

(voting trust certificates).

N. J.

com-

Offering—Of the total,

company

is offering 387,500 shares of the new common

for

subscription at $4

share in ratio of VA shares for

each share held. Rights expire Feb. 11. Remaining 96,000
shares reserved for conversion

new

Corp.

Palmetto

will be received up to noon (EST)
61 Broadwa/, New York City.

Northern Engraving & Mfg.

van

will issue 14,636 shares of preferred together with

undetermined number

ment

of additional shares in pay¬

of its obligations to F.

H. McGraw & Co. and its

track.

The

company

said

it has entered into

agreement with Monmouth Corp. for purchase
600 shares of
subscribed

common

for

Proceeds—It will

by
use

to 315,-

(voting trust certificates) if riot

voting

trust

certificate "holders.

proceeds from the sale of

common

itoredeeiri it^ outstanding shares of $50 par 4% cumula.

five convertible preferred.

track.

Business—Operation of

Vtr1 •

•'•'TO'J)

race

filed

70,000

Underwriter—Cruttenden &

Feb. 4 at Room 2601,

Peekskill

Corp.,

(N. Y.)

Baseball Club, Inc.

Price—$10

common.

($2

par)

common

stock.

Offering—All shares

sold for the account

share.

Proceeds—To

payment of debt and for working
Peninsular Oil Corp.,

Public

Service Co.

Underwriters

writer— Sabiston Hughes,

Webster Securities

Proceeds—Net proceeds will be used to

drilling

machinery

and

equipment,

other

Allentown, Pa«
Jan. 13 filed 1,050,072 shares (no par) common stock
owned by Electric Bond & Share Co., parent.
Under¬
Pennsylvania Power & Light Co.,

writer—None.

Offering—The shares will be offered for

stockholders in

of Power & Light common for

Price—The

held.

amendment as shares will be

be selected

Probable bidders In*

the selling

stockholder.

price will be $3.50 below

The First Boston Corp.; Stone
Petroleum Heat & Power

Corp., and Harriman Ripley

Co., Inc* (jointly). Of the shares registered* 182,667 are

being sold by Midland Realization, Cp<;; 54,426 by Midi*
land Utilities Co., and

(par $1). Under¬

Ltd., Toronto, Canada. Price— >

the market price on a day to
by Bond & Share. Proceeds—Proceeds go to

offered under competitive biddirig.
dude Blyth & Co., Inc.;

Montreal, Canada 4

each share of Bond & Share common

Aug. 28 filed maximum of 384,016 shares of common
stock.

Ltd.,

capital of ball club.

Sept. 3 filed 600,000 share? of common

the ratio of .20 of a share

Indiana

2,400 shares ($10 par)
No underwriting.

share.

subscription to Bond and Share common

selling stockholders. Offering temporarily delayed.
Northern

Co., La Crosse, Wis.

Co.

Price—$16

D. C.

Washington,

(letter of notification)

60 cents a share.

issued and outstanding and being

of present holders.

^subcontractors for work performed in constructing the
race

Fibre

$1,473,000 for purchase of a new
factory near Punta Gorda, Florida, at a cost of about
$951,928. It will set aside $150,000 for research and de¬
velopment purposes and the balance will be used as
operating capital.

purchase

are

pany

shares of ($100 par) cumulative pre¬
Underwriters—To be determined by competitive

Co.,

mated net proceeds of

For

Aug.

Eberstadt

16 filed 4,000,000 shares (100 par) preference
stock. Underwriting—Tellier & Co., New York. Price
50 cents a share. Proceeds—The company will use esti¬

Jan.

(2/4)

bidding. Probable bidders include Blyth & Co. and Smith,
Barney & Co. (jointly); First Boston Corp. and Glore,
Forgan & Co. (jointly); Harriman, Ripley & Co. Bids
Invited—Bids for the purchase of the preferred stock

preferred. Com¬

August

class A

^to holders of voting trust certificates of record Jan. 22

—

drawn.

ferred.
•

Inc., New York

($1 par) capital stock*
Inc. 3 Offering —
225,000 shares are outstanding and are being sold by 1#
stockholders, and 2,500 shares are being sold by A. L.
Marlman to all salaried employees. Issue may be with¬
Underwriters

Oct. 30 filed 150,000

working capital.

Blade Co.,

June 28, 1946 filed 227,500 shares

•

New York State Electric & Gas

increase

ferred stock of Pacific, the surviving

scheduled by the SEC for Dec. 19.

(letter of notification) 1,000 shares of common.

for the new pre¬
corporation. Offer¬

share for share, with cash adjustments,

146,923 by Middle West Corp*

•

h:V:

Co., Stamford; Conn*

3Q/filed464 shares ($2 ;par), comtnon; Under*
/ writers—None. Offering—Shares will be offered in ex¬
Dec.

change for entire outstanding

capital Stock of tayloi Re-^
i

THE COMMERClA^ & FINANClAt CHRONICLE

Number 4562

[Volume 165

and 277,231 shares-(50c par) common stock, with Sterling,
& Co. as .underwriters/ Company has decided to

lining

with an underlying book value of

- Grace

Co., consisting of 8,946 shares., (no par) .common.,
$2,458,224 as of last
Sept. 30. At a meeting of stockholders, Dec. 23 company
authorized an increase in common stock from 1,000,000
to 2,000,000 shares and also authorized the issuance of the
present offering in exchange for the Taylor stock. Ap¬
proximately 70.9% of the common stock is held under
a voting trust agreement of Aug.
15, 1945, which it is
expected will be terminated upon the 'acquisition of the
Taylor stock.

issue 454,465 shares of common stock only, which will be
offered for subscription to stockholders of record Sept.
5 to the extent of
not

Santa Cruz
Dec.

Dec. 26
ferred

Underwriters—Stock

stock.

will

sold

•

Rosa

•

amend¬
by com¬

will be used in connection with recent

purchase of four 'Chi Chi restaurants and cocktail
lounges in Long Beach, Riverside, Palm Springs and San
Diego and for working capital.

York

Aug. 27 filed 60,000 shares of preferred stock ($10 par)
gnd 75,000 shares of common (par 50c).
UnderwriterHerrick, Waddell & Co., Inc.
Offering—Company is
offering the preferred stock to the public, while the
common is being sold by certain stockholders.
PricesPreferred, $10 a share; common, $4 a share. ProceedsProceeds from sale of preferred will be used to purchase

equipment, pay bank loans, and other corporate purposes.
Broadcasting Cooperative,

Potomac

Inc.,

16 filed

unspecified number of shares of $4.50
stock, Series A, stated $100 a

preferred

Underwriters

—

Union

Securities

Corp.,

New

(1/25)

(letter of notification) 500 shares common and
preferred. Price—$100 per share for each
class of stock. Underwriting none. For development and
construction at Smithtown, N. Y.

Jan. 20

! •

Quebec Gold Rocks Exploration Ltd., Montreal
Nov.

shares (500 par) capital stock.
Underwriter—Robert B. Soden, Montreal, director of
company.
Price—500 a share.
Proceeds—For explora¬
tion and development of mining property.
filed

100,000

Ltd., Toronto,

Realmont Red Lake Gold Mines,
Canada

of common stock ($1 par).
Offering Price—$0.60 a share to public.
Company has
not entered into any underwriting contract.
ProceedsDevelopment of mining properties and exploration work.

shares ($1 par) com¬
President.
Price at
Alstyne, Noel & Co., and

same name

and Neybar, Inc., a

Seymour Water Co., Louisville,

Ky.

Jan. 8 (letter of notification) 7,200 shares ($25 par) 5%
cumulative preferred.
Price—$26.50 a share.
Under¬

writer—Smart & Wagner and The Bankers Bond Co.,
both of Louisville.
Proceeds—To provide part of funds
purchase

Water

2,587

shares of capital stock

of Seymour

to purchase 175,813 shares of common. Underwriting—
None.
Offering—The common shares are to be offered

The options for purchase of the 175,813 shores
are to be offered to original subscribers of

the company's stock.
It also will issue options to em¬
ployees for purchase of 69,875 shares of common. Price—
$10 a share.
Proceeds—For purchase of equipment and
for

working capital.

Solar

Manufacturing Corp.

Corp.,

writers—Van Alstyne, Noel & Co. Price by amendment.
Proceeds—Net proceeds will be applied for the redemp¬
tion of outstanding series A convertible preferred stock
which

are not

ceeds

also

purchase 18,000 shares

issued and outstanding
They are also selling to Hallgarten & Co., for $1,500, plus $360 as a contribution
owned

common

Such pro¬
be used for additional manufacturing
facilities in the amount of $600,000; for additional inven¬

tory amounting to $400,000. and for additional working
capital. Offering temporarily postponed.

toward the expenses of issuance, options to purchase an
additional 18,000 shares of the issued and outstanding
common.
Proceeds—Net proceeds for the sale of com¬

•

Tested Papers of America, Inc.,

Chicago

Jan. 13

(letter of notification) $25,000 of non-negotiable
debentures. In units of $100, $500 and $1,000. No under¬
writing. For company operations.

(O.)

Edison Co.

$32,000,000 first mortgage bonds, due 1978*
and 160,000 shares of ($100 par) cumulative preferred.
Underwriters—To be determined by competitive bidding.
Probable bidders*include The First Boston Corp.;
Halsey,
Stuart & Co. Inc. (bonds only); Blyth & Co., Inc.;"-and
Smith, Barney & Co. Price to be determined by competi¬
tive bidding. Proceeds—Net proceeds together with $4,500,000 bank loan and if necessary, the $5,000,000 to be
contributed by its parent, Cities Service Co., will be used
to redeem outstanding debt and preferred stock, involv¬
ing a payment of $56,906,590, exclusive of interest and

Transgulf Corp., Houston, Texas

Jan.

(letter of notification) 30,000J shares (ho par)
common. Price—$10 a share. Underwriter—South & Co.,
Houston, For development of oil and gas properties.
•

United Air

Jan.

Lines,

Manufacturing Co., Detroit, Mich.

94,773 shares ($100 par) cumulative pre¬
Underwriting—Harriman Ripley & Co., New
Offering—For subscription to common stock¬

ferred.
York.

common

Sept 3 filed 40,000 shares ($25 par) 5% cumulative con¬
vertible preferred. Underwriter—Ames, Emerich &
Co.,
Inc., Chicago. Offering—To be offered to common stock¬
holders for subscription at $25 a share in the ratio of
preferred share for each five shares of common held
unsubscribed shares will be sold to underwriters at same

Price — Public offering price of unsubscribed
shares by amendment. Proceeds—For
expansion of plant
facilities and for additional working capital.
Offering

Inc., Chicago

20 filed

holders in the ratio of

Soss

(letter of notification) 105,800 shares (50c par)
common.
Price—85 cents a share.
Underwriter—The

of the

by them.

converted into common stock.

will

postponed.

New York

Offering—Price $6.75 a
are also selling to

dividends.

June 14 filed 80,000 shares of $1.12% cumulative con¬
vertible preferred stock, series A
(par $20).
Under¬

price.

Oil

account.

own

Options—Selling stockholders

Oct. 25 filed

Dec. 9 filed 500,000 shares ($10 par) common and options

market.

Reiter-Foster

share.

Toledo

Airways, Inc., San Antonio, Texas

one

tCohu & Torrey, New York.

shares, for their

Co., Seymour, Ind.

Slick

Jan. 8 (letter of notification)9,000
mon on behalf of John J.
Daly,
Underwriters—van

Corp., New York

1 filed 210,000 shares of common stock (par 50
cents).
Underwriters—Hirsch & Co.
Offering—Com¬
pany is offering 75,000 of the shares registered.
Eleven
Stockholders are selling 135,000 issued and outstanding

pany's 75,000 shares will be used for increasing working
capital, with a view to entering the Frequency Modula¬
tion and Television fields at an advantageous time. In¬
definitely postponed.

corporation of the

subsidiary of that corporation.

Nov. 20 filed 800,000 shares

Regal Shoe Co., Whitman, Mass.

Tele-Tone Radio

Aug.

cessor

200 shares of

Proceeds—For payment of notes,
mortgages and for general corporate purposes. Offering
temporarily postponed.
;
: ;L - v

the underwriters at 7 cents per option warrant options to

of common

Progressive Air Service, Inc., Smithtown, N. Y.

(par 50c). Offering-—Price $6 a share for
preferred and 75 cents a share for common. Underwriter

company's plan of consolidation; to redeem at $105 a
share, plus accrued dividends, 10,000 outstanding shares
of 41/2% cumulative preferred of Denver
Dry Goods
Co., which will then be a wholly-owned subsidiary. Any
balance will be used for corporate purposes.
Business—
Operation of department store.
The company will be
organized next month by the consolidation of a prede¬

publicly.
■

common stock

—Amos Treat & Co.

common

working

York; Boettcher and Co., Denver; and G. H. Walker &
Co., St. Louis. Price by amendment. Proceeds—To sat¬
isfy the appraisal rights of shareholders who objected

Jan. 17

capital,

cumulative convertible preferred stock and 44,300 shares
common.

Scruggs-Vandervoort-Barney, Inc., St. Louis,

Washington, D. C.

(letter of notification) 492 shares ($100 par)
and 13,460 shares ($10 par) preferred.
Details
4>f the common stock offering not disclosed but preferred
will be offered at $10 a share.
No underwriting^ To
finance erection of radio station and for operating

pany

Mo.

to
•

(par $1).
Offering—Com¬
is selling 45,000 shares, and eight selling stock¬
holders are disposing of the remaining 150,000 shares.
Price—$10.50 a share.
Proceeds—From 45,000 shares
sold by company will be applied to working capital
initially. Offering date indefinite.'

Underwriter—C. K. Pistell & Co., Inc.

Taylor-Graves, Inc., Saybrook, Conn.
July 12 (letter of notification) 44,300 shares of ($5 par)

Keeler, Calif.

(letter of notification) 94,489 shares of
a< share.
No underwriting.
For

share.

Plg'n Whistle Corp., San Francisco
Dec. 26 filed 50,000 shares (par $7.50) cumulative con¬
vertible prior preferred $2 dividend stock. Underwriter

Molded Arts, Inc., New

Mining Co.,

Price—$2
capital.

cumulative

Plastic

par)

Wilson

Santa

Jan.

proceeds—Will be used for working capital.

pany and proceeds

($1

out¬

right to Stroud & Co., Inc., Butcher & Sherrerd, and
Glover & MacGregor, Inc. who will sell same to their
customers at market but at not exceeding $102 per share

—G. Brashears & Co., Los Angeles.
Price by
ment. Proceeds—23,481 shares are being issued

Street & Smith Publications, Inc.

Aug* 28 filed 195,000 shares common stock

share, 16,000 shares will be transferred to
and Wayne Voigts for their interest in
Santa Cruz Flying Service, which is a flying field and
airport, and 6,000 shares would be issued in cancellation
of partnership indebtedness.
No underwriting.
For
operation of airport business.

Alex.

Jan. 17

Inc.
(letter of notification) 2,907 shares of first pre¬

Philadelphia Dairy Products Co.,

53,000

July 17 filed 197,500 shares of common stock.
Undejrwriters—Glore, Forgan & Co.
Offering—The offering
represents a part of the holdings of the present stock¬
holders. Indefinitely postponed.
Swern & Co., Trenton, N. J.

Sky Park Airport, Inc.

Of the total 31,000 shares will be offered pub¬

licly at $1

Newark, O.
Sept. 27 filed 100,000 shares ($20 par) cumulative con¬
vertible preferred. Underwriter—Van Alstyne, Noel &
Co. and G. L. Ohrstrom & Co., New York. Price—$20 a
share. Proceeds—For payment of loans and to replace
working capital expended in purchase of building from
RFC and to complete construction of a building,

(Calif.)

(letter of notification)

common.

Pharis Tire & Rubber Co.,

share for each five held. Issue will

one

be underwritten.

489

held.

one

share for each 19.5 shares of

Unsubscribed shares will be purchased

by underwriters. Price by amendment.
Proceeds—For
general corporate purposes. The company plans to spend
about $70,000,000 for new flight equipment, new ground
facilities and communications equipment.
Business—
Operation of airline.
•

United Products Co.,

Westminster, Md.

Jan. 13

(letter of notification) 5,000 shares ($1 par) capi¬
tal stock.
Price—$1 a share.
No underwriting.
For
working capital.

Jan. 8
r

; Federal

Corp., New York.

Southwestern
Jan.

Republic Indemnity Co. of America,

Tucson,

Ariz.

Dec. 12 filed 20,000 shares ($10
shares ($2 par) 50c cumulative

•If company finds it necessary
*

par) common and 50,000

preferred. Underwriter—
to enter an underwriting

agreement, the name of the underwriter will be filed by
Offering—The shares will be offered for

-amendment.

I subscription to common

stockholders of record on Jan.

*10, 1947, in the ratio of % of a share
-for each share owned and 1%
t

for each share of

common

held.

$30 a

common

of new common

Unsubscribed shares

the public.

Price—

share and $10 a preferred share. Proceeds

—The proceeds will

capital by an
additional $800,000

be used to augment

(additional $300,000 and surplus by an

Telephone Co.,

tor business expansion purposes,

050 demand note held

by Southwestern's parent, General
Telephone Corp., and to reimburse company's treasury. *■
•

Stillwater Worsted Mills, Inc.,
Harrisville,

Jan. 17

(letter of notification)
common.
Price—$10 a share.
additional working capital.
Stone Container Corp.,

are

Chicago

selling 200.000 shares and stock¬

selling the remaining 100.000 shares.

covered 184,821
$1 cumulative convertible preferred ($10 par)

Registration
shares of

originally

filed

July

Price

$1,225,000, plus a premium of $12,250. together with

500, together with

10-year 6%

accrued

debentures

working capital

bank loan, and-$493,-

interest, for discharge of its

Any balance wilt bp added to
■ hv:;

Price $5 per share for

preferred. Proceeds—For working capital and expansion
of business.

Dallas, Texas

(letter of notification) 30,000 shares (no par)
common to be offered to stockholders at $5 a share in the
ratio of one share for each three shares held.
Under¬
writer—Federal Underwriters, Inc., Dallas; and Trinity
Bond Investment Corp., Fort Worth.
For additional
3

capital.

by amendment. Proceeds—Of net proceeds, company will
use

Republic Pictures Corp., New York

30,000 shares are reserved for the exercise of warrants
up to Jan. 15, 1950 at $3.50 per share and 200,000 are
reserved for the converison of the preferred. Under¬

Universal Corp.,

—

holders

50c). Price of preferred $5 per share. Of the common

Dec.

Oct. 24 filed 300.000 shares of ($1 par) common. Under¬
writer
Hornblower & Weeks. Chicago. Offering —Of
the total, company is

Manufacturing Corp., New York

Nov. 4 filed 200,000 shares (par $1) 25c cumulative con¬
vertible preferred and 230,000 shares of common (par

writers—Names by amendment.

R. I.

12,500 shares ($10 par)
No underwriting.
For

accrued interest, for payment of a

V ■"

U. 8. Television

13, 32,000 shares

(no par) cumulative preferred.
Underwriter—Paine, Webber, Jackson & Curtis, New
York.
Price by amendment.
Proceeds—To pay $1,569,-

shares of new preferred

I will be offered by the company to

Associated

Dallas, Tex:

For working capital.

Utah Chemical & Carbon Co., Salt Lake City
Dec. 20 filed $700,000 15-year convertible debentures
225,000 shares ($1 par) common.
The statement

and

also
covers 105,000 shares of common reserved for conversion
of the debentures.
Underwriter—Carver & Co., Inc.,

:
„

(Continued from page 489)

•

COMMERdAfc

490
'*

construction,
capital.

amendment.
Proceeds-r-For plant
equipment and for working

purchase of

Exploration, Ltd., New York
($1 par) capital stock. Under¬
writer—None,
Offering—To be offered privately to -0
small group of subscriber^ to the original .syndicate and
to stockholders of the Clemenceau Mining Corp. PricesAt par.
Proceeds—To effectuate the purchase agree¬
ment with the Clemenceati Mining Corp, for acquiring
mining properties in Arizona.
•

Verde

Sepfc 2 filed 245,000 shares ($1 par) commdn. . Under*
writer
Auchincloss, Parker & Redpath, Washington,
D./C. Price—$7 a share. Proceeds—Will be used for pay¬
ment of (Various expenses, repayment oi bank loans,
purchase of equipment and for working capital.

Montreal, Canada

($1 par) capital stock.

Nov. 13 filed 400,000 shares

Un¬

share. Pro¬
Business—

derwriter—None as yet.
Price—25 .cents a
ceeds—For developing
mining property.

Acquiring and developing mining properties.
1

Vogeibach Associates, Inc., New York (1/27)
Jan. 21 (letter of notification) 200 shares of preferred
and 50 shares of common to be -offered in units of 4
preferred shares and 1 common share at $500 per unit.
Underwriting none. Proceeds will he used to enter the
import and export business in Latin America, etc.
•

Warren-Teed products Co.,

Columbus, Ohio

(letter of notification) $300,000 12-year 4%%
sinking fund unsecured debentures, due 1958. PricePar,
Underwriter—The
Ohio Co., Columbus, Ohio.
Proceeds—For payment of debt, repurchase of discounted

•

Watson

(H. S.)

capital.

Co., San Francisco

(letter pf notification) a maximum of 2,0Q0
shares ($50 par) capital stock.
Price—$50 a share. No
underwriting. To increase working capital.

Jan.

Air

Lines, Inc.

13 (letter of notification) 12,000 shares ($25 par)
$1.50 participating preferred. Price—$25 a share. Under¬
writer—F. L. Putnam & Co., Inc., Boston. Proceeds—
To pay portion of cost of outstanding common shares

1,200,900 shares ($1 par) capital stock.
Underwriter—Dillon, Read & Co. Inc. Price by -amend¬
ment.
Proceeds—Offering consists of an unspecified
number of shares being sold by 4he conipany and by
William A. Coulter, President and Director. The amounts
being offered by each will be stated definitely by amend¬
ment and the total number of shares presently stated
will be reduced if the offering consists of a smaller num¬
ber of shares. Company will use its proceeds estimated
at a minimum of $6,500,000 together with a $7,500,000
bank loan, toward payment of its promissory notes and
to finance company'*: equipment and facilities expansion

Nov.; 27 filed

program

Whiting
registrant.
*

The Western

Jan. 17

which

will

(letter of notification)

(Union Telegraph Co., New York

with

merged

(no par}
Price—$25 a share*

stated value $2.50

a share.
For additional working capital.

underwriting.

sold

competitive

amendment.

;

3,000 shares

;

Madison, Wis.

May 21 filed $59,0Q0.shares ($10 par)

common stock ta

Underwriters—By
Merrill Lynch,
White, Weld & Co.; Glore,

bidding.

Probable bidders

Pierce, Fenner & Beane;

(letter of notification) 133 shares of class A stock

include

Forggn & Co., and Harriman Ripley ,& Cq. (jointly);

The Wisconsin

Price—At market. Underwriters—J. R. Williston & Co.,

Co., and Dillon, Read & Co.

Proceeds-

Part ef the shares are .to

heboid by Middle West fCorp^
top holding company of the System, and .part by pref¬

York. Scrip

stockholders -of North West Utilities Co., parent
Of Wisconsin, Who elect to sell such shares of Wisconsin
common which wjll be distributed to- them uponthe
erence

scrip certificates.
White's

(Del.)

Wisconsln Power & LIght Co.,

behalf of holders of the company's scrip certificates..

common,

be
•

Milk

Williamson Heater Co., Cincinnati, Ohio

Jan.

under way.

now

Whiting Milk Co., Charlestown, Mass,

Jan.

certificates holders will receive. their
pro-rata amount of the proceeds as represented by their

accounts receivable -and for working

•

Western

New

Jan.

will

be used to provide funds for a
wholly-owned sub¬
sidiary, retire loans from banks and from White's Em¬
ployees Profit Sharing Trust, and for additional working
capital. Expected to file hew financing plan at early date.'

—

Jan. 20 filed 405,000 shares

Victory Gold Mines Ltd.,

dividuals for their own account.. Price by"/amendments
Proceeds—Proceeds from the-sale of the preferred stock

Inc., Seattle, Wash.

(Continued on page 490)

Boston;v Price—By

Thursday, January 23#9$?;

Auto Stores, Inc.

dissolution of

Aug. 29 filed 75,000 shares $1 cumulative convertible
preferred .stock %20 par) and $0,900 shares tbnuno.ii
stock <par $1).
Underwriters—First Colony Corp. and
Childs, Jeffries & Thorndike, Inc. Offering—Company
is offering 75,000 shares of preferred; the 50,000 shares
of common are outstanding and being sold by four in¬

North

West

Utilities

" "

Co.

Wyatt Fruit Stores, Dallas, Texas

•

Nov. 12 -filed bjiOOO shares ;(par «$100) preferred stock*
Undenrriter—Rauscher, Pierce &Go. Proceeds^Wiil be
used in part to
super

equip three new cafeterias, to remodel its
markets and to increase working capital.

Prospective Security Offerings
(NOT YET IN REGISTRATION)
INDICATES ADDITIONS SINCE PREVIOUS ISSUE

(Only "prospectives" reported during the past week are
given herewith. Items previously noted are not repeated)

tfU.
*

•

Bedford, Mass.

Aerovox Corp.,

Jan. 21

reported planning the withdrawal of

company

noon

Detroit Edison Co.

Jan. 22

directors announced that they are studying a

$1,500,000 -5 % debentures now in registration,, having
a loan of $1,000,000 from an insurance company.
Reported planning the filing of $500,000 new preferred
with pranbery, Marache & Lord as underwriters.

programfor additional financing Which will >be required
to take care of company's, construction budget in next

y Alabama Great Southern RR« ( 1/23)
Bids Will be received at company's office Room

Trask & Co.

obtained

70 Pine

2018,

St., New York, up to 3 p.m. EST Jan 23 for the

$1,520,000 equipment trust certificates series J.
Dated Feb. 15, 1947 certificates will mature in 10 equal
annual installments 1948-1057. Dividend rate to be spe¬
cified in the bids.; Probable bidders include Halsey,
sale

Stuart & Co. Inc.;

Salomon Bros. j&JIutzler.

•

term

Pacific Ry.

Bids will be received at

company's office room 2018,
St., New York up to 3 p Jn. EST Jan, 23 for the
equipment trust certificates Series K.
Dated Feb. 15, 1947 certificates will mature in 19 equal
annual installments 1948-1957. Dividend rate is to be
70 Pine

sale of $1,700,000

specified in the bids. Probable bidders^includq-|Ilalsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
9

pn increasing longindebtedness to $7,500,000. Company proposes to

notes with new
inotes;maturing $375,000 ea<:h Dec. 1, ,1947*55, and
$4,125,000 Dec. 1, 1956, with interest ranging from V/2%

Connecticut. PowerCo.

it has ift view an expansion

program which .will cost about $6,000,000 and take three
years to complete. The cost, it is said, will he financed

by an issue of debentures, which may be placed privately.

United States Government,

Corporate Securities
w

«-

'J:

Blair &• Co,
INC.

•

2Vz%.

•

■

Federal Electric Products Co.

reported company contemplating some new
nancing with E. F. pillespie & fo. as underwriters.

Jan. 22

•

Froedtert Grain

PHILADELPHIA

•

-PITTSBURGH

•

8T.

iOUIS.

cars and 1,100 freight cars the latter to be built in the
Pennsylvania's shops. Probable bidders include Salomon
Bros. .& Hutzler and Halsey, Stuart & -Co. Inc.
.

•

Public

';
•

•:

CLEVELAND

SAN ^FRANCISCO;

Service

Co.

& Maiting Co-,i

lu^^

fi¬

Sclurpdbr^ Robkefellef ,& Co,, Inc. and

Richmond

particulars) approved

others

amen4ei$i^^it$ib^te

competitive bidding of
$19,400,000 bonds and $2,700,000 shares of common stock
(par $3,50) -the latter to net $18,610,500. Probable bidders
The First Boston Corp.; Halsey, Stuart & Co. Inc. (bonds
only), and Dillon, Read & Co. Jnc. (stock only).
Missouri-Kansas-Texas RR. -

Jan. 24 company .will open bids on a $5,Q00>009 Joan to
be seemed by pledge of the road's prior lien jmortgage
4% bonds Of 1986. Proceeds will be used tp acquire Mis¬
souri, Kansas & Texas Ry first 4s of 1990, and MissouriKansas-Texas RR. prior lien 4s of 1962, 4^2s of 1978,

Radiator Co.

New York Chicago .& St. Uouis

RR. (2/4)

10 equal annual instalments Feb. 15, 1948-57. Prob¬
able bidders include, ^Halsey, Stuart & Co. Inc.; Salomon
in

'-.v

" V

Norwich & Worcester RR.

The company, a

-was ^"announced

that stockholders

approved

^iver^ea^$eid^>matUf^

vertible debentures, which will be

convertible into

com¬

stock. /Cppupany intends to file the debenture bonds
with SEC.
'
'
% 'V
'•
'/
j
Rosenblum

Jan. 22 -reported

( Davis

corp.

underwrhing;^ocufitieP
some

23 .women

that E. -F. Gillespie & CJo. contemplates

apparel stores in the south.

-operates
~r' ;

.Seaboard .Air
Company will receive bids up to 12 noon £EST) Jan.
29 at office of Willkie Owen Otis Earr & Gallagher,-45
Brpad
sale ^f $3,p00,099; e-quip-i
ment trust certificates. The dividend rate which must be
a

/multiple pf }A -of 1%; is to be specified in the bid.
bidders include Halsey, Stuart ^ Go. Jnc4

Probable

Salomon Bros. & Hutzler^

•

Upper Peninsula Power Co..
Consolidated Electric & GUs Co. and the Middle
West Corp. jhave asked the SEC for Authority 4:6 form a
new company to be called Upper Peninsula Dower Go.
This company would operate ,in the upper peninsula of
Michigan/ Jt- wpuld have initial authorized capital of
5,000 shares ;(par $10) and subsequently would sell its
first mortgage bonds, preferred and common stock -at
competitive bidding and use proceeds to acquire three
electric utility companies. The new company would ac¬
quire from Consolidated Electric, Middle West* and Cop¬
per Range Co. their interests in Houghton County Elec¬
tric. Light Co., Iron Range. Light
Power Go/• and
Jan. 21

Company has issued invitations for bids to be considered
Feb. 4 for $1,000,000 of equipment trust .certificates. The
certificates will be dated Feb. 15, 1947, and will mature

•

mon

•

(subject to minor

Loewi & *Cq,

Interstate Power Co.

privides for issuance and sale at

•

of New Mexico

liquidation of Federal Light & Traction' Co. ^Probable
The First Boston;Corp.
and White Weld & Co. (Jointly).
- •
r*
»
•

ported new company will dssue about $5,500,000 20-year
3V8% linking fund debentures to • retire/.
tures
and ' hreferred
stocks, probable; ^^underwritefs^

•

^ >'

propos^/^rger^lpFpedtert
Inc. and 'flockwood i&i Co., re¬

Malting -Co.,

Jan. 21 the SEC

.»

bidders include Blyth & Co., Inc.;

issuance^^^fli°25,00fll 4%

•

Cities Service Co. will sell at later
339,639 shares of this company received through

Grain

CHICAGO

will receive bids for the sale of $14,-

970,000 equipment trust certificates Series R, maturing
in l-to-15 years. Proceeds will be used to coyer 80%
of the cost of 15 Diesel electric locomotives; 57 passenger

Jan.

BUFFALO

(1/23)

Jan. 22 in connection with
&

oi,

Jan. 22 expected -that

Bros./ ^ Hutzler; Harlis : Hall & Co.
western .banks and -trust -companies.

NEW YORK
BOSTON

Jan. 23 company

serial

and 5s of 1962.

State, Municipal and

Pennsylvania RR.

date

New Orleans & Texas

Jan.22 company announced

js&khplders wiil vote,

replace present $7,500,000 .short-term

(1/23)

The company is inviting bids fertile sale pf $2,300,000
equipment trust certificates. Bids will be received bt
company's office, 3400 Terminal Tower, Cleveland, Qhio
pn or before noon (EST) Jan. 23. The certificates are to
mature Feb. 15, 1948 to 1957. Probable bidders include
Halsey, Stuart & Co. Inc.; Harris, .flail & Co. (Inc.) .and
Cleveland .and New York banks.

Cincinnati,
(1/23)

Dresser Industries, Inc.

'Marcfi 17

Chesapeake & Ohio Jty.

Spencer

sale

Exact form of financing not yet determined.
Probable bidders for new securities: The First Boston

few years.

Corp.; Halsey, Stuart & Co. Inc.; Coffin & Burr;
?

(EST) FPb/^at its Boston officethef

$1,800,000 first .morigage bonds, series B, dated .March 1.
1947, ahd maturirg Marc^^967;/The.jfei^
r^te%illJ
be that named by the successful bidder.
.

(Inc.) and'Mid-1
'

/
J:

'
.

leased line unit in the New

Haven'& Hartford RR.

* *

' '-A

«4-

A&i

(2/5)

York, New

system, will receive "bids up to

Copper District

Power Go.

•

Volume 165

#HE$OMMERClAL &¥llMNfclAI^^

Number 4562

exchanged $7, and $6 preferred!
•*1 7- V'j

Kalsey, Stuart Offers
113,000,000 Bonds
f Halseyj .Stuart 8t Co» inc.
associates

sued fpr cash will be

an4

trie & Gas Corp. first mortgage
| Internal
Revenue
Code
under
.bonds, 2%% series due 1977, at
which such holders are required;
;102% % and accrued interest. The
to Ipcldde in net taxable incomel
group yron the bonds Jan. 21 on
|pr assessment. :pf. the nonnal; taxj
a bid of 102.269.
1
on corporations ONLY' 15 % of the;
i
Proceeds from the sale of the S
dividends received on these 24,6.00! A

^demptioh. all iof the issued

^an<j \

future

transfers

cer-j

tifieates for these shares will

outstanding first mortgage bonds

coiirj

tinue to carry the same identifica¬

-n-/

j<vm

that the stock he
he

WcdterWkyie

provisions of the United States!

bonds will be used to calhfor reT l shares.

Markets

identified j

such so that corporate, purr j
chasers may' rebeiye the benefit i.
of

Tomorrow's

New York State Elec-^

ing is not dependent on mar¬ the stock. Maybe such an at¬
gins or outright purchases. titude
is
commendable, ~ I
Basically the reason for buy*, don't know. What I do know
ing is profits. Let a man feel is that nothing reduces an ac-

y/;-

(

The prospectus states that: cer- f
tifieates f|pr; ihe?^^5J)00;ahares is-[

offeHng5 pu^lidy

are

'$13,000,000

.stocks.

Says— '':
of

series

Public

due

Utilities

1964.

Corp.

General

parent

tion.

•

dullhe$s til

three point
range would be
ideal for market. But market

Subsequent to the issuance

ml? of the

bonds

new

the

ferred

5.10%
stock.

The

j.x

jmium

and

eferred

stock

sell

which

$7,500,000

referred

value

par

Co.,

and

utility operating in Colorado and
Mexico, was made Jan. 22
by

headed
Price

group

onds

funds
for

have

been

de-

the

payment of the
and preferred stock to be

the

some more

stock

due

sells

made

share.

was

exchange to
lolders of the company's
$7 and
56 prefbired
stocks, and the balf ince od 24,000 shares is being is¬

$100 per

share the

Counties, Colo*

cents

($0.15)

has

stock

been declared
upon
the
BURROUGHS
ADDING
MACHINE COMPANY,
payable
March 10, 1947, to shareholders
of
record

the

re¬

securities.

Commercial

un-

Park

and

Place,

Box

business

Financial

New

HARVESTER
COMPANY

SANFORD B.

WHITE, Secretary.

Th$
Chronicle,
N.

meeting of

the Directors
1947 it was de-

held January 14,
elided to recommend

to stockhold¬
the annual
meeting fixed to
be held
February 7, 1947
ers

payment

Old

Trader Available

Good

Salary

both.

Box

mercial

for contact

New York 8,
'

•V

•-

men
t

\x *

opening
success¬

security

Firm

present.

has

Executive

record

commissions.

connections; replies
Address

State
treated

past
confi¬

dentially.

BOX F

120

Commercial & Financial Chronicle

25 Park Place

•

Pound

31,

New York 8, N. Y.

Programs

That Stiihulate Sales
-

Public Relations Director with fifteen
in the fields of
to offer a

finance,

relations

Commercial

•Chronicle, 25 Park Place, New York 8.

waves.

at the .170

In fact the area was small
puts a dent in one's
widely advertised by confidence.
every
market seer in the
❖
❖
^
rather

level would almost be

few and scattered.

The pro¬

fessional has all he
make

ends

do to

can

without

^meet

yesterday

well intrenched

allocating £150,000
ployees
Benevolent

the

Pound
current

Fund

and

decided

1947 Interim

How long such

so.

period of dullness will be,

time will tell.

advise

Meanwhile I

that

the

stocks

hold^wKich

are

still above

you

the

❖

There is

❖

one

able

kind

some

yesteryears.

[The

point in favor,

are

not known for

their intestinal fortitude.

will hold
weeks

there's

argue

to.a

stock

maybe months
loss present.

;

H. Hentz & Co.
'

Members

York.: Stock"

New
New

'^.i
Exchange/

York

Curb

Exchange

Cotton-

Exchange

New

York

Commodity

He'll

Chicago

that he doesn't have to

take the loss because he

Established 1856

;

for

in this

article do not necessarily at any,
time coincide with. those of the
Chronicle. They are presented as
those of the author only.]

in¬

Involuntary investors,

however,

Whyte

$scprested

rapidity./ To¬

day's trader is perforce
vestor.

with

move

Thursday.; Is
—Walter

of the trader of
was

speculator of

Exchange,

Board

New Orleans Cotton

And other

owns

N. Y.. Cotton

Inc.
Trade

Exchange

Exchanges*

Stock

Pacific Coast

Exchange Bldg.

CHICAGO

DETROIT

PITTSBURGH

,•

.•

GENEVA. SWITZERLAND

Securities

pay

fDivi-

for

the- issued

the

Ordi¬

Stock of. the Company free of

Orders Executed
Pacific

LAMBORN & CO.

Coast Exchanges

NEW YORK 5, N. Y.

Feb¬

26, 1947 will be in time
ein&ble^ transferees to receive!
ruary

Al.TU'SX'tiE ET

Tax.

received

Schwabacher & Co.

idends.

New York Stock Exchange

regards Bearer Warrants the

above dividends ;?iviH ; be paid
together against the deposit of one

New

York Curb Exchange

Chicago

two

coupon

only namely No. 199.1

BRITISH-AMERICAN
TOBACCO COMPANY, LIMITED
January 14, 1947.

•-

NEW YORK 4, N. Y. '

Shilling for each On4

Ordinary

year

period of dullness.

I.still think

Em¬

£400,000 to General Reserve the
carry forward will be £3,046,377.
have

what would be needed

would, be

today.

expenses

£3,578,361 for the previ¬
After paying Final'Dividend amounting to
£1,187,888 and

March 31*

ihat

ning for theni. Today what
stop-loss orders there are, are What shape it will take/ only

year.

program to one more

institution^^K 'consultation:4s-- ^^hbut^bbr^ >.

Ugatlon^of couwei: Bo^

by other

0/Wif;-/'

When the marlket rallied to

the

div¬

business and industry, is prepared

profitable public

organization

years' experience

and

against

ous

Transfers

'.'.j'

after de¬

for management,
etc., and provid¬
ing for taxation are £4,975,470 as

British Income

year

ducting all charges

nary

Div¬

Net Profits for the

Directors

Final

Shilling for each One
Ordinary Stock free of

dend of One

Ordinary Stock.

Public Relations

1947

British Income Tax upon the issued

sales¬
oppor-

tunity
is
offered
to
right
man.
Full cooperation will be
given, in¬

against

Financial

N. Y.

who has

unlisted

statistical information and
qualified
leads.
Drawing account

M-19, Com¬

man

clientele.
at

house/ dealing

securities, has

March

idend of One

cluding

commission/ or

Chronicle, 25 Park Plate,

retail

and

experi¬

following.

and

established

investment

ful

ence.

SALESMAN

Over The Counter

years

124,

York

barometer

worrying about the so-called
overbought or oversold tech¬ thefe critical points, C should
Secretary nical positions.
The margin be Continued to be held.

dividend
No.
114
of
one
dollar
and
seventy-five cents
($1.75) per share on
the preferred stock
payable March 1, 1947. has
been declared to
stockholders of record at the
close of business
February 5, 1947.

well entrenched

anything.

trader

Experienced in Real Estate wanted by
house specializing in this
of

Geo. W. Evans,

established
class

uJ"'' ' ''•

time reflects and fore¬

same

Quarterly

SITUAXION WANTED

Twenty

and

ror

mir¬

sional trader1 would go gun¬

INTERNATIONAL

TRADER

It has

lowed

loss orders, and the profes¬

CASH

of the company

name

A dividend of fifteen

the

stock will be used in part to

generates

HELP WANTED

sued-£or cash to finance
capital
.Additions to the company's system.

deem

Co.

Right now the" market is
honeycombed with uncertain¬
ties.

certain to be filled with stop-

adopted last July.

stock offered in

Animas

Co. Present

represent

Proceeds from the sale

CONSECUTIVE

founding January 31, 1947.
in 1911 as the Trinidad Electric
Detroit, Michigan,
Transmission, Railway and Gas January 17, 1947

shares being offered, 21,the unsubscribed
Portion of 40,000 shares of the

182nd

electricity in Huerfano

gas inTrinidad, Colo., home city
of the company since its

)f the

Power

such

Burroughs

mort¬

and Colfax and Mora
Counties,
N. M. 5" It also produces and sells

Jan. 16 by a group of
; i nvestment1 bankers
headed
by
'."he First Boston Corp. The new

new

first

DIVIDEND

Frontier
and' Las

value,

per

$1,772,000

1951.

and

Public offering of 45,478 shares
i)t Birmingham Electric Co. 4.20%

priced at $100

value

par

gage 3^% bonds due 1966, and
$207,000 promissory note (21/2%)

'irmingham Elec. PH.

was

T /■"' K1

In the old days such
Last week in writing here
generally anticipated resist¬
ance zone was
always open to that the base would probably
suspicion.
Mainly because be around 170, I also added

DIVIDEND NOTICES

stock authorized and out¬

buying. Yet buy- business.

ilrel BesloaCor|i Offers

•478

consists

140,000

con-

standing,

tock

1946,

common

escrow for new

ruction.

July,

ii^

perhaps ing.

ard

that

The market which is

you

selling permit present holders to do

7-for-l split-up of 20,000
shares of $100 par value common

of the financing, the bal¬

^posited in

accounts

many

Outstanding capitalization, fol¬

common

lowing

ance
remaining, estimated to be
approximately $8,800,875, will be

; t

sale

shares, representing 85.3% of

stockholders.

redemption premiums, dividends,
interest and certain costs and' exp snses

the

*' ''

stock of the
company,
will be retained by certain

called and for the payment of the
i

from

V1'

bought at the 176 level than
figure*- This means
got the news of lower mar¬
When the market showed a that the majority of new buygins. To some extent the 25% zone of resistance around the ers: are how sitting with
rule will take the load off 170 level, it wasn't
surpris¬ losses. A loss/ no matter how

Sills,, Minton & Co.
the public was $10 a

proceeds

v'tj'-'VV'

today public sitting it out waiting to
the (uncertainties present In see "what will happen: Occa¬
our/ political
arid economic sionally this public/will buy
status are so
widespread that more than is good for it, then
it takes either a special kind wonder
why the market has
of vision, foresight or
luck, or stopped going up. A wave of
maybe a combination of all buying today; doesn't; set off
three, for the potential buyer subsequent waves of buying.
to get in a frame of mind to The first wave advances
and
recedes and is seldom fol¬
actually participate.

show

share.
Net

After

* ❖

❖

■aove.

>sited

isn't

future,

During the past week

underwriters

that

cheerful.

public

"vv,

trouble

ft
■-fe

about 175,; a; five point ad*
tells, or tries to.
Sometimes vance from the lows: it did
particularly in
doing this it speaks vol¬ cprisideiable. :l'll^nture/an
umes, other times it doesn't opinion that more stock was
*

still the picture of the

stock of

common

was
being writ¬
rather, as it went to
The fact that it went

press.

New

com¬

pany intends to call will likewise
be. made from the cash contribu¬
tion

the Frontier Power

the

this column

up is gratifying, but no more
than that.
For before us is

Public offering of 119,431 shares
of

pre¬

the

0fM.al $10 Per Share

redemption

dividends

stock.

common

Frontier Power Stock

and

pre¬

cumulative

...

ten,

ferred stock and call for
redemp¬
tion sall of the issued and out¬

standing

....

545,610! shares of

com-

*y intends to issue
and
U>.»,000 shares of cumulative

'c»Ued bonds will be paid from
•the cash contribution referred to
above.
•
j

more than he

he will be
eager.

The

count so rapidly as so-called
outright holdings. --

day, for

originally bought Jt for, and

=% WALTER VHYTEs
period

buys today,

sell tomorrow, or the:

can

1 seldom does the ideal. Advice
Giving effect to the financing,! to stay long however holds.
the company,
haMaade/^capitalj the company's outstanding cap-;
The recovery from about
contribution to the company" of
italization will consist of $12,300,the 170 level came almost oh
$7,500,000; in! cash.; Eedemptioh' 000 of funded
debt, 64,000 shares of
%rafoium* and interest on the new
In fact it qatne as
4.20% preferred stock and schedule.
'3%%

491

14 Wall

Board

Street^

SUGAR

(Associate)

Trade

NevTorkS, N.Yi

COrtlandt 7-4150

Exports—Imports—Futures

Teletype NY 1-928

Private Wires to Principal Offices
;,
San

Franoiseo

Monterey

—

Santa

Oakland

;hc/v// 3 Freeae

—

Barbara

lj£:\.

'V* • *• V

C>.y f

}i\- ' \

.hp*•'

Saeramento

;

DIgby 4-2727

•492^TH^,C0MM^RClAt}& FINANCIAIi;CHRONICLE
therefore, would pot increase. On
the contrary, the real income of
those -Whose wages and salaries

Labor Relations Crucial in 1947

have not increased would actually
decrease.
Such a development

By MARCUS NADLER*,

York University

Professor of< Finance, New
:

.j\-

■i.l4:;; V. v..1 :V = 3, '* • '..'it.

* •'j&.-i*' ' W*. *>•.*»:

:•>

of lost opportunities and the mistakes
government, labor, and management have cost billions
in3> 1

dollars

decline of the
pur c

hasing
of the
Liquid

power

dollar.

in the

assets

billions.

Since

that

time the pur¬
Dr. Marcus

chasing power

Nadler

the

dollar

decreased

has

by about 17.8%, causing a shrink¬
age in the purchasing power of
assets by about" $39
.millions. Little did those who ad¬
vocated higher wages arid those
civho strdvd for. higher prices real¬
ize what the cost of this policy
I the: above

would be.

"'}

The year

•

1946 was marked by

^ijitte^Mbbv^dstriOlei by strikes, by

,;•{

the

wave

which

the

econ¬

from

the

country suffered
during the first half

much

1946. If, on the other hand, labor

unreasonable

and

should

experience another round of

amounted

$221

omy

witness

not

strikes

strikes, another round of wage and
price increases, then the reces¬

19 4 5

will

1947
of

in¬

business at the
end

to believe, however, that the year

and

hands

dividuals

—■

political foundation of
country.. * It Lis • doubtful
whether the swings of the' busi¬

INDEX

cycle can be eliminated en¬
tirely in a system of private en¬
terprise and of free men. How¬
ever, it is quite possible to remove
the peaks and valleys of the busi¬
ness cycle.
A great deal has al¬
ready
been
accomplished
and
more and more is being done al¬
most daily.,. The problem has not
yet been solved, however, and
until it is, it cannot be said that
the danger to our economic and
political system has completely
mer must be on the constant look¬
disappeared.
•
A great deal has been learned
out for new techniques; the latter
must learn that high wages are about- ; the
causes
of the- wide
sound only when accompanied by swings of the business cycle.
If;
high productivity. The country, government,
management,
and
as a whole,
must learn that the labor approach this problem in a
high standard of living enjoyed spirit of good will it could be
by the people of the United States solved, thus assuring for ourselves
is based : on
high productivity, and the future the benefits of the
high wages, and relatively low American heritage.
prices.
A problem that will press for
ness

the ' foundation for
unemployment
and
stagnant business activity. Prices
are
too high and will have to
come
down if
prosperity is to
prevail for a long period of time.
This
can
take
place primarily
through an increase in produc¬
tivity and of efficiency, thus lead¬
ing to greater output per manhour. This is the responsibility of
management and labor. The for¬

The past year was one

11 \lost product i o n and m

nomic and

the*,

lay
large-scale

recounting errors and lost opportunities of past '
year, holds business activity during 1947 will be determined largely
by labor relations. Says it is fairly certain there will be ho serious
depression during year and a high' level of production will be
maintained for several years thereafter. Warns,j however, there
must be satisfactory wage-price relationship and ability of veterans
and others awaiting jobs to obtain them. '
.

but also might endanger the eco¬

would

Dr. Nadler, after

made by the

Thursday, January 23,{1947,:

sion, when it comes, will be more solution in the not distant future
pronounced, will last longer, and

Robert Garrett & Sons

losses will be substantial.

To Be NYSE Meitibers

is to provide suitable employment
for the hundreds of thousands of

Notwithstanding these
uncer¬ veterans who have flocked to in¬
tainties, however, it is fairly cer¬ stitutions of higher learning. A
tain that there will be no serious
grateful nation has made avail¬
depression in 1947, accompanied able to
many thousands of young
b y
large-scale
unemployment. men the possibility of a higher
This cannot take place so long as
education. It is up to us not to
the demand for so many goods has
disappoint them when they leave
not yet been met. The demand'for
the schools. A college or univer¬
housing, for durable goods and for sity education opens up to them
machinery and equipment from new vistas of a better life, higher
domestic and foreign sources is
standard of living and better po¬
very great. The supply of liquid sitions.
Will there be so many
assets in the hands of the people,
good positions open? If not, what
although not evenly distributed, will be the reaction of these young
is very substantial. Under these
men, many of whom have never

rising prices, by. international po¬ circumstances, therefore, no seri¬ held a job or who for five years
ous depression can be expected.:;
or more had all their responsibili¬
litical complications—in short, by
Government
officials
had ties met by the Government? Will
I jmany disappointments with which v.; If

BALTIMORE, MD. — Harrison
Garrett, partner in Robert Gar¬
rett
&
Sons, Garrett Building,
will acquire the New York Stock
Exchange membership of the late
Elwood P. McEnany and

which holds
Baltimore

contents

see

391;

page

Old Reorganization
Rails

Domestic & Foreign
Securities
New Issues

m.s.Wien&Co.
:

ESTABLISHED 19X9

Member9 JT, T, Security Dealers Asfn
40

Exchange PL, N. Y.S

HA. 2-8780
Teletype JN. ■ V. 1-139

.the firm

membership

Stock

For detailed index of

Exchange

the
will

become members of the New York

are

Other partners in the

Exchange.
firm

Stockton Matthews;

Edward K. Dunn, George

Ralph L. DeGroff,

D. List,
148 State St, Boston 9, Mass,

general part¬

are; only

too iamiliar. As the

these

taken

facts

into

account

about a year ago, they would not
came to an end, however}
have predicted six to eight milf
the, akies began: to brighteii air
year

though some new dark clouds of
labor troubles began to appear* on
'-the horizon. The external political
-situation is much better than eartier in 1946. Production is increas; ing rapidly.
In many lines the
sellers' market is being converted
,

;
.

"into
*

buyers' market; and a dein

cline

commodity

prices

has

set in.

What

abopt the future? Business
activity during 1947 will be de¬
termined to a large extent by
.

labor relations. If they are satis¬

factory* 1947, on the whole, ought
J to be a good year. Production: will
fee

high level. Employment

and national income will be sat*

will be more numerous than

ures

;

unemployed

not have exerted such

great pres¬
in order to
maintain buying power. If Gov¬
ernment planning had been
sounder, instead of being one of
disappointment,
the
year
1946
sure

raise

wages

prosperous years
is

which lie ahead

prevent large-scale unem¬

Such

many

does 1947 promise to
good year but also the next
few years in general are bound to
be marked by a high level of proa

etion, large national income and
odtisfactory
employment.
How¬
ever, it is of the utmost impor¬
tance that Government, business,

bound

to be keener.

who hopefully started new

risky;'

: ;

•

Drexel & Co. To Admit

Drexel

&LCo., members of the
will

We AtfUe^a

New York Stocks JExcKange^

ence

W. Bartow to partnership on
V-''

solution.

First,

HAnover 2*0059
Firm Trading

Capital Stock |10 parDividend of $1.80 paid In 1946
Stock Exchange

Ralph F. Carr & Co., Inc.

Markets

81 Milk

Boatea

FOREIGN SECURITIES

increase in wages

through

Shortage

f^|;K||. Delhi OilLij.v

of;,Freight

U. S. Radiator Pfd.

Sunshine Consolidated

car

Insurance and Bank Stocks
Industrial Issues

SPECIALISTS

Inmtment Tnist Issues

New York 4, N. Y.

50 Broad Street

t !

Public Utility Stocks and Bonds
*

AFFILIATE: CARL MARKS & CO. Inc.

CHICAGO.

:iEOTILE;SE(WRITIES
a
New; Eng. Market

—

Securities with

Frederick C. Adams & Co;
T-.i

Specialists in

■

New England Unlisted Securities

Specializing in ULnlisted Securities

30 FEDERAL STREET, BOSTON.
'

ioJ

«•

•;

•-

Toletype BS 83

Bank—Insurance
Public

Utility—Industrial —* Real Estate

^Seaboard Fruit Co., Inc.

^General Products Corp.

Car»

^Susquehanna Mills
At

Bonds, Preferred and Common

manufacturers)

Stocks

Empire Steel Corp.
'

BOUGHT—SOLD-QUOTED

"itf.?

't'S

*Pipspectu$

Request L

Market about 9
1946
}.
,

W. T. BONN & CO.
120 Broadway, New York 5
Telephone' COrtlandt 7-0744
Bell Teletype NY 1-886

high about

«■

REMER, MITCHELL &

>•':S'?■ *'}'

.; Circular Available

208 SOUTH LA SALLE

LERNER & CO.
Inactive

10 Post Office

Securities

WESTERN
■

Square, Boston 9, Mass.

Telephone Hubbard 1990.

Teletype Bs 69.

REITZEL, INC.

ST., CHICAGO 4 t PHONE

RANDOLPH 3736

oiB EtL -SY5TJE M:uT^LETy-|LE ;^1(3

-1

EatahUahed in l922

Tel. HANcock 871S

RALSTON STEEL CAR CO.
(freight

BS 32S

FOREIGN SECURITIES

for it

business lor

Teletype *.

Indicates; long-term large volume of

Now York

Haoever 2-7913

W* Specialize in all

CAUL MABKS 4 P.O. Inc.

This

achieved

'*"■'?

All Issues

to establish a satisfac-

cdnnot

Streef, Boeton 0, Mate.

Hubbard 4442

Lumber & Timber

V-v',V

Listed Boston

absolutely

further

J Gerotor-May

MfMachineCo:
Current Market 19

Teletype—NY 1-971

{

♦Remarks by Dr. Nadler before would only aggravate the prob¬
the Detroit Stock Exchange, De¬ lem.
Higher wages would lead
troit,; Mich., Jan, 23, .1947,
to higher prices.
Real income,

;

tre4hfg iniere^int*^

i^e^lld^: Riittda'Gtde

admit Walter H. Steel and Clar¬

problems press for

^The/.principal factor; is: the: at- fory prfceywa^

titude of labor. There are reasons

;i-^

Steel and Bartow

Problems Ahead
A number of

necessary

Attitude of Labor

•

■

development Feb. 1. Mr. Steel has been in
would not only mean losses tq charge of the firm's New York:
business and suffering to {many office at 14 Wall Street.
ployment,

along or will ,they, use

their

Teletype B8 200

Not only

but wiser. Business will; become

anything

it:

JV. F. Telephone HAnover 2-7914

could have been one of fulfillment.

businesses} will- be- disillusioned

;

comes

TeLCAP. 0421

during the last four- years and

tfcfat

political power and become
during 1946. If
they had taken into account'the a burden on society? Above all,
huge accumulated demand for all what will be their social reaction?
kinds of goods and the supply of
The greatest of all problems
liquid assets at the disposal of the
people, the Administration would that must be solved during ilie
lion

{ isfactory* ' Competition will be
{keen and prices of many com¬
modities ought to recede. A moder¬
and labor take advantage of the
m
ate recession is quite likely; This
always takes place when a sellers' period of prosperity in order to
market changes to a buyers' mar- prevent a serious depression when
I ket. when the pipe lilies are filled the accumulated demands have
I and inventories are large, the buy-!
been met, when the country has
1: ing habits of the consumers underi.
go changes, and they become more to live on its current income and
L value- and quality-conscious. Fail- when competition from abroad is
r

they be content to take

LRobert}
johhspn Garrett, iMited 'partnersi

ners,: hnd:

Hill, Thompsons Co., Inc.
Markets and Situations

,>120

for

Dealers

Broadway, New York S

TeL REctor 2-2020

Tele. NY 1-2660