The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
s.
ADM.
BR,vRf inal Edition
2nd Section Contains 1941
Security Price Ranges
^Reg. U. 6. Pat.
Volume 155
Number 4039
New
^J^OUR
the Year
and
1942
v
see
groups appears to be in
the making for the next two new
security
market.
It
is
'
there
the
:
will
be
Alabama
when
a
duplication
no
Power
Security Dealers Asso¬
ciation, urged that "public trading activity on the exchange" be made
the yardstick on which the
granting of Unlisted Trading Privileges
and the continuance of such
privileges should depend.
Mr. Dunne, appearing on behalf^
1941
Monthly Stock
and
Bond
Price
Ranges,
of'the
New York Security Deal¬
Association, said "... I suggest
that public trading activity should
be made the criterion of the suit¬
of
in
of
Panhandle
are
formation
of
process
submission
V
already
groups
bids
for
for
r
the
Eastern Pipe Line
V
Company's projected offering
>
on
j
be opened Feb. 4 next.
which
tenders
There will
and
appear
A
*
-
little
be
should
prise
several
it
is
due
are
or
'
to
sur¬
no
bids
considered
agency
not
altogether unlikely that one, or a
group
of
insurance
companies
decide to go it alone. ><
The total of securities involved,
may
including
$10,000,000 of 20-year
(Continued on page 434)
The Securities and
Chief among the many problems of the securities busi¬
ness that once
again are being aired in resumed hearings
before the House Interstate and
Foreign Commerce Com¬
mittee is that of the Securities and
Exchange Commission,
itself.
This administrative agency
ment has functioned lamely and
of the Federal Govern¬
poorly during practically
all of its eight years of existence, and the business of
origi¬
nating and dealing in securities has suffered in consequence.
It is a commonplace that one of the main headaches of the
financial world is the SEC.
Chartered 1866
be
YORK
when
granted,
Member Federal
economic
ills
:
Corporation
the
of
the
country
were
blamed for
dismal
all
ills
punitive
after
1929.
not in any sense
a business which
Another factor is
the
spirit
animating the Washington
in everything
affecting finance. Many other
cited to account in small or
large part for
results
administration
of
of
the
those
securities
laws
enactments
and
the
by the Commission.
When all is said and
done, however, the personnel of
as the core of the
problem. It
is an old and settled
principle that even the worst form
of government is tolerable when directed
by intelligent,
sincere, earnest and well intentioned men. And the best
the Commission stands out
THE CANADIAN BANK
form is evil if
OF COMMERCE
HEAD
OFFICE:
the
TORONTO
>
Established
1867
Paid-Up Capital
admirable, and in the
magnified.
♦
' *
$30,000,000
Reserve
incompetence and self-seeking prevail among
Administrative government is far from
,
case
of the SEC its defects have been
,
(Continued
.
on
page
vicinity of the ex¬
to admission, the
the exchange itself,
of
of the
privileges
are
which
amount of auction
could
be
trading
expected
upon
admission to
exchange trading. It
(Continued on page 415)
Page
Editorial
Exchange Com¬
Regular Features
and
tlons
THE
409
Reporter's
Bank
of
New
414
OF THE CITY OF NEW YORK
Flota438
....
Trusts
415
.
Municipal News and Notes
416
Personnel
412
Railroad
Items
Securities
Securities
Whyte
Corner
(The)
News
Moody's
Bank
service with Chase
»
413
Bond Selector (The)
Whisperings ..:
Our Reporter on Governments....
Uptown After 3
Jottings ...........................
On the Foreign Front
From
Washington Ahead of the
General
414
Markets—Walter
Says
........
The
Broaden your customer
413
Salesman's
Tomorrow's
BANK
409
Stocks
Security
CHASE
NATIONAL
Report......v.....
Insurance
Investment
State
of
and
correspondent
433
facilities
411
418
420
Member
Federal
Deposit
Insurance
Corporation
432
Review
Bond
433
440
439
Trade
Prices.....
432
Its Products
421
426
Debits
Cotton
Ginnings
Weekly Coal and
Statistics..
Electric Power Output
},
Domestic Price Indexes..........428,
Weekly Steel Review..;,
Car
434)
the
INDEX
Petroleum
authorities.
and
prior
vicinity
evi¬
public
trading activity be effectively ap-
as
security
etc., were devised in the hope that
they would give a fair indication
urge
of
the
the
change
the
criterion
The Securities and
by stringent Federal control of
Administration
Deposit Inturance
than
trading
yardsticks
the distribu¬
of public trading activity
over-the-counter market
the
Similarly, I
such
the
Calendar
persistently
BROOKLYN
active
more
dence indicates.
that
public
vague
such
use,
within
to
point is the defini¬
The
of
Commission itself recognizes to be
unsatisfactory evidence,
in
the
hope that subsequent trading will,
for some reason or
other, turn out
in
this
'sufficient
in
tion
period, and
privilege
the
difficulty which presents
at
of
amount
Our
items could be
NEW
trading
unlisted
mission
was
President
granting
"The
itself
tion
of
sufficient public trad¬
on
privileges,
rather
than
granting the privilege on what the
Some of the trouble doubtless is to be attributed to the
alleviated
George V. McLaughlin
to prospective
as
before
the
■y:
depend
now
needlessly complex and difficult laws administered by the
agency.
Some may be due to the peculiar discovery that
COMPANY
the ensuing
activity.'
activity
trading
Exchange Commission
BROOKLYN TRUST
in
continuance
evidence
Editorial—
). issue.
Several
ing.
plied
ability of a security for auction
trading.
In
other
words,
the
Securities and Exchange Commis¬
sion should
require satisfactory
incident
Co.
single group bid took the
that
ers
Pages 452-477.
slated to reach
a
certainty that
issues
Price $1.00 This Issue
In a hearing on Revisions of the Securities
Acts held by the
House Committee on Interstate and
Foreign Commerce, Frank Dunne
of Dunne & Co., President of the New York
Pages 448-478.
Plenty of competition between
banking
:
Rumberf
Industry
Regarding Outlook for Business in
Finance
Section
Dunne Urges Trading Activity As Yardstick
Fer Granting Unlisted Trading
Privilege
For Opinions of Leaders in
—
-
Office)
Business and Finance Speaks After the Turn of
REPORT
2 Sections
^
York, N. Y., Thursday, January 29, 1942
Annual Review and Outlook
REPORTER'S
n
Coke
432
426
426
United States
430
428
Government
430
Loadings
20,000,000
Securities
This Bank Is In close touch with
the
commercial
and
of Canada and is
financial
life
well equipped to
corporations, firms and in¬
dividuals
interested in Canadian
R. H. JOHNSON & CO.
The
F. H. PRINCE
aerve
business.
in
Branches
New York Trust
INVESTMENT SECURITIES
PROVIDENCE,
Company
Important
every
64 Wall Street
city and town in Canada and New¬
BANKERS
RHODE ISLAND
foundland, also in Portland, Oregon;
San
Francisco;
geles;
London,
Seattle;
Los
England;
Kingston,
Jamaica;
Barbados,
and
An¬
Bridgetown,
Port
of
Spain,
BOSTON
Troy
YORK
Exchange PI.
&
CORPORATION
INVESTMENTS
AGENCY
Hanover St.
NEW YORK
PHILADELPHIA
Trinidad.
NEW
HIGH-GRADE
Capital Funds. $37,500,000
New York
Havana;
T'hc
FIRST BOSTON
i-
Albany
Pittsburgh
lOO BROADWAY
Williamsport
Watertown
New
.
BOSTON
CHICAGO
Members
..
York.
Boston
Wilkes-Barre
Chicago
Stock
PHILADELPHIA
&
SAN FRANCISCO
AND OTHBR PRINCIPAL CITIBS
Exchanges
MADISON AVENUE
AND 40TH
STREET
Specialists in
.CarlM.Loeb,Rhoades&Co,
Over-the-counter
61 BROADWAY
Securities
TEN
ROCKEFELLER
GUARANTEED
PLAZA
RAILROAD STOCKS
NEW YORK
HART SMITH & CO.
Kobbe, Gearhart & Co.
INCORPORATED
Members N. Y. Security Dealers Ass'n
45 Nassau Street
London
Buenos Aires
Tel. Rector 2-3600
New York
Teletype H. T. 1-576
Member
Federal
Insurance
Members
of the
Deposit
New
52
York
WILLIAM
Bell
Corporation
New
York
Security
ST.,
N.
Teletype
Dealers
Y.
NY
Assn.
HAnover 2-0980
1-395
Montreal
Toronto
CUARANTEED
Telephone
BO.
Or.
9-6400
RAllPOAD STOCKS-BONDS
52
Broadway
NEW YORK
Teletype
N.Y. 1-1063
THE COMMERCIAL & FINANCIAL CHRONICLE
410
FOR
MARKETS
cumstances to be construed as an
BOND
by
,
.
GUAR.
Y.
MORTGAGE
&
TITLE
The offering is made only by the Prospectus,,
;
NEW ISSUE
,
American Cyanamid 5%
buy any such shares'■ •'v;'.
v/Lb-'&V.v.**
solicitation of an offer to
a
,V/\4
Pfd.
ASSOCIATED
U. S. Lines (Nevada) Pfd.
>;'CrV
CO.
CO.
CO.
MORTGAGE
LAWYERS TITLE & GUAR.
N.
as
CAS & ELECTRIC
INSURANCE
TITLE
LAWYERS
>j
.
MORTGAGE
&
HOME
Speculative Possibilities:
-
CERTIFICATES
issued
ho 'cir-\■
offering of these shares for sale ;q?
r.>
advertisement appears as a matter of record only and is under
This
MORTGAGE
Thursday, January 29, 1942
49,000 Shares
CO.
CO.
TITLE & MORTGAGE CO.
TITLE GUARANTEE & TRUST CO.
Missouri Pacific 5Vis
5s &
6s, 2002
STATE
All
local
other
Pawling Refining Corporation
companies
Members
40 Wall
WHitehall 4-630(1
St., N. Y.
Bell
:
;
Leigh Ohantllep & (Jo.,Inc.
Sugar
Vertientes Camaguey
100
Sugar
Investors Fund C,
Broadway, New York
Bond
J. F. Reilly&Co.
January 27, 1942
Members
50 Broad
Bell
St., New York, N. Y.
WE
1-2480
Y.
N.
Teletype,
System
ARE PLEASED TO ANNOUNCE
HAS
Portland Elec. Power 6-50
Cuba
UNLISTED
TRADING
Utility 5^2
cializing chiefly in the Distribu¬
tion of industrial and municipal
DEPARTMENT
Members
,
65
New
York
Stock
New
York
Curb
cities
Exchange
BROADWAY
1942
System
YORK
NEW
ST.
HAnover 2-9410
Teletype NY 1-1140
■ • ;y
v
C/Ds
Pltila. & Read. C.&l. 6s 1949
Stevens & Thompson Paper
VM, 1958
Stevens & Thompson Paper Common
Houston Oil Co. Preferred
Tudor
All
and
."V;
Westchester County
INC.
120
BROADWAY
20
REctor
2-7634
Beil
BROADWAY
S.
YONKERS,
N.Y.
MArble 7-8500
NEW YORK, N.Y.
Teletype
NY
on
Jan. 23, before the House Committee
disposed of within six months
purchase by the
.
.
Mr. Rea said this
"•
-;
•
provision "has
important deterrent to
honest, legitimate and desirable
buying and selling in the open
market" and fails to "prevent mis¬
use
an
confidential
of
SEC,
of
information."
Purcell, Chairman of the
told
Committee repeal
the
section
this
would
"strip
in¬
vestors of one of their most essenr
tial
offerings wanted
Arkansas
Highway
&
3s
3%s
Consolidated Coal Com.
(St. L.)
Missouri
&
Pfd.
Light
Pfd.
protections."
According
Com.
Power
&
Edward D. Jones & Co.
Established
Boatmen's
Bank
adT
vices to the "Wall Street Journal"
of
Jan.
Members
New
York
Phone
Postal
7600
Bell
Stock
cated
not
22,
Exchange
and
were
opposed by the SEC included:
Provisions
requiring
called "insider"
so-
reports from of¬
ficers and 10% stockholders and
.
Stock
Exchange
St.
Louis Stock Exchange
Chicago Stk. Exch.
Chicago Bd. of Trade
Assoc.
Member Chicago Mercantile Exch.
New
York
Curb
Exchange Associate
CEntral
were
the proposals advo¬
by Mr. Rea which he said
concurred in by the New
1.
1922
Building, ST. LOUIS
Long Distance
Teletype—ST
L 693
prohibiting short sales by such
parties should be extended to
all companies having 300 stock¬
holders
$3,000,000
2.
Trust
and
gross
assets
of
or more.
The proxy
visions
of
the
Exchange
should be extended to all
-
Act
com¬
Committee at the
Sidney
L.
Francisco
Stock
time
same
Schwartz
were
the
of
Exchange
advices
Press
from
ft
10% Fare Increase
T&letype NY
NEW
Nat'l
mission
Jan.
on
21
.
approved
YORK
BOSTON
ticular
The
trains.
a
SEC
changes
and
show
(Continued
that
Monon
Coal
s.
5s
w.
s.
Harry Parker Co.
74 Trinity Place,
Albert
Where the total increased fares
less than
less
one
than
dollar, fractions
one-half
cent
Fagan if ill
£
Fagan & Go.
Form
•
are
New York, N. Y.
Teletype NY 1-1102
WHitehall 4-8565
of American Railroads.
Effective Feb.
shall
"a-
more
1, Albert E. Fa¬
of
Stock Exchange,
&
415)
r
NASD District 13
Mr.
G.
New
Riter, 3rd, Riter &
York City, was re¬
Chairman
of
of the National
in
Ungerleider was a partner in
District
John Mutton To Join
G. H. Water & Go.
No.
Association of
John
Murray C. Mathews Now
With Webber, Darch & Co,
{Special
Bell Teletype NY 1-897
partner
W. Hutton will become
in¬
and associated with G. H. Walker &
Connecticut.
Irving Fish, Smith, Co., 1 Wall Street, New York
Barney & Co., was named Vice- City, members of the New York
Chairman, and Frank L. Scheffey Stock Exchange and other lead¬
was re-elected Secretary.
ing exchanges, as Manager of the
Municipal Bond Department as of
to The Financial
ChiCAGO,
Security Dealers Association
a
Elects Riter Chairman
.
13
Incorporated
was
Fenner, Beane & Ungerleider.
Securities Dealers, Inc., which
cludes New York, New Jersey
Dodge 4s '35
thereto
Beauchamp & Fagan. In the past
lib-
page
on
member
gan,
prior
the
urged
Frederic H. Hatch & Co.
St., New York, N. Y.
w.
will
increase
into effect on Feb. 10, accord¬
ing to officials of the Association
require completion of
study of regional ex¬
Iowa Central 5s 1938
63 Wall
Com.
Properties "A"
Bay way Terminal 6s & Com. ;
an
mittee to
pro¬
York
I
...
Iowa Central 4s 1951
New
6s & Pfd.
England Theatre 5s
increase of approximately
Mr. Schwartz asked the Com¬
Des Moines & Ft.
Members
Fireproofing 5s & Com. £
Industrial Real Est. Tr. 3s
Feb.
1-609
4-0488-89-90-91
the New York
will form Fagan
Co., with offices at 41 Broad
creased to the next whole cent,
Exchanges for extension of SEC
i Where the total increased fares Street, New York City. Associated
proxy
regulations
to
certain 1
with
him
will
bo
Isabelle
G.
are
more
than one dollar, such
smaller companies
and urged
Kaufmann and Abraham Unger| fares shall end in 0 or 5, but no leider as limited
broadening of legislation requir¬
partners.
Mr.
I more than 2.5 cents shall be added
ing so-called -"insiders" to re¬
Fagan has recently been in busi¬
j; to the present fares as increased
port their transactions in their
ness as an individual sto^k broker
by 10% in order to make such
own stocks.
;
on the floor of the Exchange, and
total fares end in 0 or 5.
Minneapolis & St. Louis 6s 1932
4-4970
Exchange
Southw. Lumber Mills 5s & Com.
The Interstate Commerce Com¬
'be dropped and fractions of oneMr. Cunningham opposed the
request of the two New York jhalf cent or greater may be in¬
Minneapolis & St. Louis 5s 1934
WHitehall
WHitehall
A. P. W.
5s, 1946
Y.
Stock
Fulton Iron Wks. 6s, Pfd. &
Railroads Granted
I of
Minneapolis & St. Louis 4s 1949
N,
York
South Coast Corp.
and
Washington
The "MINNE" Situation
G.A.Saxton&Co.,Inc.
New
BROADWAY, NEW YORK, N. Y.
Teletype NY 1-1702
Tel.
the Union
go
land Stock Exchange. ^ Associated
New York & Hobcken Ferry
ST.,
Members
65
of Georgia, Indiana,
San
Russell Cunningham of the Cleve¬
Bargains in
5s, 1946
PINE
Warrants
Trading Department ■.
Building, Cincinnati.
elected
70
Triumph Explosives
and is not in charge
10% in
panies
engaged
in
interstate all
passenger fares with the ex¬
commerce regardless of whether
ception of those charged members
their securities are listed on a
of the military and naval forces
stock exchange.
; Vtraveling on furlough and fares
Others
heard
by
the House charged as "extra fares" on par¬
commission
regulatory
Ferry
5s, 2032
At¬
Poli New
Co.,
New Orleans Great Northern
in
Director
DURYEA & CO.
and makes his office in
Henry
Hoboken
*
Common
on
reported that:
Washington
to
York
Utilities
Missouri
Triumph Explosives
Virginia, and West Virginia,
see,
..
Ganson
1-2361
NY 1-1557
Kentucky, Pennsylvania, Tennes¬
Foreign
and Interstate Commerce, his views on proposed changes in the
Securities Acts, George P. Rea, I President of the New York Curb
Exchange, urged the repeal of existing requirements that officers or
principal stockholders are liable to their corporations for any per¬
sonal profits made in transactions involving their
company's listed
and registered stock if the stock♦>-————-——
-...
.....
been
Schoonover, deWillers & Co.
been
Hoagland has been identi¬
since
of the states
Testify Against SEC Amendments At Hearing
officials.
Mortgage
' •>.%
Public Work Administrator
a
Mr.
/vy
-
Geo. P. lea Of N. Y. Curb, John Fleek Of ISA,
of the date of its
,iCertificates and Bank Stocks
BH 198
25 Broad St.
of its distribution in all or in part
is
CilyUnits;
also
has
its inception
Indicating
Pfiila. & Read. C. & 1.5sf 1973
southern
in
headquarters
fied with the Long Company
.
C
Wire
New York, N. Y.
;
for the Government.
Teletype NY 1-1919
Exchange
Curb
York
New
Direct
of Finance for the state of Georgia
WHITEHALL 4-8120
j
Bell
Bridge Bonds & Stock
He
branches
from
lanta.
Fiank C.Masterson & Co.
WALL
period he was
Bancamersupervising
a
Corp.,
of
number
Exchange
Members
■
51
-
this
securities. In
Edward A. Purcell & Co.
42
-
,
Brown-Marx Bldg.
New Orleans, La. Birmingham, Ala.
of the country, spe¬
various parts
IN OUR
ica-Blair
January 26,
Members
Members New York Stock Exchange
Maritime Bldg.
Company. He has been identified
with several prominent firms in
5l/2 & Com.
Berkeley-Carteret 5l/i
64
Steiner, Rouse & Co
southern manager for
Company Pfd.
Detroit Inter.
ASSOCIATED WITH US
BECOME
V
/
Industrial Office Bldg. 6-47
Great Lakes
Securities
ing field with the Liberty National
Bank now the New York Trust
THAT
Mr. S. A. O'Brien
Amer. La France
and
Louisiana
Mr.: Hoagland's business career
started in the commercial bank¬
Assn.
JIAnover 2-4660
'
HA 2-2772
TELETYPE NY lr423
v:
Dealers
Security
York
Inc., Manhattan
Fund, Inc., and New York
Stocks, Inc., have announced the
election of Arthur M. Hoaglana
as Central States Vice President,
Telephone REctor 2-3459
New
'
1920
Security Dealers Ass'n
Alabama
Hugh W/ Long and Company,
Incorporated, 15 Exchange Piace,
Jersey City, national distributors
of
Fundamental Investors, Inc.,
Alegre Sugar
West Indies
York
Exchange PL, N.Y.
BEIiIi
Long Elects Hoagland
I Central Stales V.-P.
■
Copies of the Prospectus may be obtained from the undersigned:/,-yy
Sugar Associates
Punta
NEW YORK
J
2-7815
REctor
New
Lebanon
City
Atlantic
Eastern
"
40
($1.00 Par Value)
Offering Price $2.00 Per Share
I
Established
>
Members
Stock Exchange
York
New
BROADWAY
120
Capital Stock
1-2033
NY
Teletype
Philadelphia
Members
Exchange
Stock
York
blew
KATZ BROS.
IfepONNELL&ro.
(A New York Corporation)
Newburger, Loeb & Co
Mathews
has
with Webber,
ILL.
—
become
Chronicle)
Murray
1.
Mr. Hutton
was
formerly
Municipal De¬
partment of the New York office
of
Bankamerica
Company
and
charge
of
C. prior thereto
associated
Darch ^Company,
J3€reet.
-
208 South La Salle
in
the
was manager
of the
department for
Sutro Bros. & Co. and Francis I.
municipal
bond
duPont & Co.
Volume 155
Number 4039
THE COMMERCIAL & FINANCIAL
CHRONICLE
411
COMMERCIAL and
FINANCIAL CHRONICLE
Reg.
U.
S.
Patent
Office
William B.
Dana Company
Publishers
1
•';
t
25 Spruce Street, New York
BEekman 3-3341
'
j
■)
i
Prospects for
:
Herbert D. Seibert,
■
First
W.
;
Bought
Prospectus
three
/Thursday
ing
times
(general
week
a
and
news
[every
on
25 Broad
the
"NO BID"
undersigned
Because of
Copyright
1942
by
y;1
William
B. ' Dana
■'<? v
;
sound
those
Street, New York
V
99
„
States
WE
ARE
ARE
fluctuations
in
remittances
of
account
TO
ANNOUNCE
OUR
50TH
THAT
rate
of
Request
on
OF
SERVICE
TO
-
Members New
York Stock •Exchange
CONNECTICUT
Aldred Investment Trust1
FEBRUARY
FIRST
1942
'4%s,
Street, New York
WHitehall
•
V.
:
V.
»V
'
•
V-"
Refining Process
By PawSing-Offer Stock
Leigh
Chandler
&
Co.,
Broactway, New York City,
100
are
of¬
Members
New
York
Stock
fering 49,000 shares of the $1.00
Par Common Stock of the
Pawling
Refining Corporation. The offer¬
ing price
is
$2.00 per
share.
Pawling owns a new process of
.degumming and. dehydrating Cas¬
tor
Oil, which creates an essence
that, added to ordinary petroleum
-lubricating oils, gives them an
"active
oiliness".
formerly.,
un¬
known in petroleum or.
any of its
derivatives, according to the
pros¬
pectus.
Speeded up
;
machine
be
to
appears
one
by-products of the new
process,
The
Company
having
been able to produce a
cutting oil
which
the
faculty of being
transparent. This transparency is
Invaluable in precision work, the
prospectus continues, since it en¬
ables
unique
the
stantly
machine
to
operator
the
see
con¬
cutting; edge.
More than 20 additional products
made possible by the new
process
already
are
on
the market.
1;
Discovery of this process per¬
mitting the distillation of Castor
SOil
District.of
culminates
a
has
of
chain
the
lumbus.
full
century of
created
Ball
will
We
Exchange
H.
REAL
J.
&
named
was
and
the
□
rjj
the
Current bulge in retail buying bids
with
mous
textiles
fair to exceed that of Sep¬
goods,
the
items
likely to
woolens),
radios,
canned
goods,
hosiery,
soap,
tions.
BOSTON, Mass. — Joseph E.
O'Connell, member of the New
Stock Exchange, and Max¬
list of
a
be
scarce
soonest, such
up
as
entire
an
science
new
•:
Sugar
is
'
V
:
metal
no¬
.
Housewives
the
aluminum .which
anything
prospectus
products
is- superior
hitherto
marketed,
states.
.
having done any¬
thing about it, during which time
the sugar trade tried its best to
prevent a housewives' rush until
are a
core
oil
and
a
an
industrial
This
Washington should have
shortage. The trade
did. Yet Washington fiddled from
August until mid December while
soap
.r
com¬
..
understood,
particularly in view of the exten¬
sive market which may be
opened
up
by the company's
new
ing
to
as
be
Wall
New Orleans Great Northern
5s, 2032
Macfadden Pubs. Pfd. & Com.
Permutit
Georgia
Consul. 5s, 1945
ATLANTIC INVESTING
CORPORATION
67
WALLST., NEW YORK, N.Y.
Telephone'—-BOwling Green
Teletype—NY
9-3000
1-1629
Sugar Securities
Write for
on
our
recent
analysis
leading companies in the
industry.
BOND & GOODWIN
INCORPORATED
We have aninterest in the
v
?
1
'*
~
.
following Public Utility Common Stocks:
* "
•*
.
"•
'
i
63 Wall
St., New York
.
Boston
Chicago
Portland, Me.
ARKANSAS-MISSOURI POWER CORP.
BLACK HILLS POWER & LIGHT CO.
IOWA PUBLIC SERVICE CO.
IOWA SOUTHERN UTILITIES CO.
Cairo Bridge Co.
MISSOURI UTILITIES CO.
motor
6^2S, due 1958
NORTHERN NATURAL GAS CO.
circular
discussing the
Miami Bridge Co.
PUBLIC SERVICE CO. OF INDIANA
1
3
Common Stock
SIOUX CITY GAS & ELECTRIC CO.
cur¬
rent
Bought—^old—Quoted
situation in 5% Cumulative
Preference Stock of the American
Cyanamid Co. is being distributed
R.E.SwARTStC0.
,by Bristol & Willett, 115 Broad¬
way,
Company
Central of
.
...
Circular On Am. Cyanamid
this
1-1203
though it is go¬
cumulative
and
have prepared
oil.
A
Teletype NY
rationing business, in
fact, looks
foreseen the
J
to
Considerable interest is manifest
the Street, it is
in
2-8970
..
penetrating
pletely free of abrasives.
"J.-
new
oil of greater
powerful
■
>
Bond &
■
efficacy,
HAnover
seem
too late.
-
Co.'s
Participations
Broadway, New York, N. Y.
the
Other
;
39
E.
.
Title
other
J. GOLDWATER & CO
months without
outstanding case.
particularly Washington would do something
Bessell will form O'Con¬
sensitive on this one, as witness about the situation, sounded the
nell & Co., with offices at 49 Fed¬
tocsin
on
the radio on Jan.
18
the
foolish
rush
in
September,
eral Street, on Feb. 9. Mr. O'Con¬
about the shortage and precipi¬
1939, which helped to drive sugar
nell has been a partner in
tated the current consumer scram¬
Souey futures up the limit day after day.
& Co. which will dissolve as of.
ble for sugar.
Now it will take
This time Secretary Wickard ap¬
Feb. 9, and prior
thereto in Souc:, parentlygave the final push to weeks or months to straighten out
Swartswelter & Co.; in the past'
the mess. However, sugar ration¬
the hoarding snowball with his
he
was
Vice-President1 of
the
ing will probably provide much
broadcast of last week.
Shawmut
National
Bank.
Mr.
The sugar rationing announce¬ experience and information for
Bessell was a Vice-President of
ment is another instance of Wash¬ rationing other items.
Bond & Goodwin
Incorporated.
ington action being too little and
York
63
Ctfo.
Trust
sumably known the situation for
self-accelerating in more than
Goodwin, Incorporated,
one way.
Street, New York City, forehanded industrial consumers
a detailed analysis
stocked up far in advance.
For instance:
In
of
lubrication,
the
prospectus on leading companies in the sugar Washington the ball was handed
Shortage talk brings rush buy¬
adds,,...
industry and also an interesting around from OPA to Agriculture ing, which hastens the
shortage
bulletin on
the
In cooperation with one of the
to OPM to State Department and and calls for rationing.
industry itself,
which may be had from the firm back to OPM
Eastern
Each, item rationed may make
Arsenals, Pawling1, has
again. Then Sec¬
created a special cutting oil for upon request.
;
retary Wickard, after having pre¬
(Continued on page 434)
opening
scribed
Ctfs.
Co.
as
(particularly
rubber
Be Formed In Boston
V
all
Co.
Complete Statistical Information
tember,' 1939 (inflation fear), of last August (inflation fear) and
last September (coming excise taxes). This time it is fear of ration¬
ing. And like two of the previous rushes it will probably hasten
what it anticipates. The list of items being rushed is almost synony¬
O'Connell & Go. To
Sugar Securities
Title
Ctfs.
INC.
uniform
.
In
Co.
Members New York Security Dealers
Assn.
*
practice committee.
well
Invited
Mtge.
&
Bank
1 1
In
Mtge.
Lawyers
Bond
..
of
Specialists
Inquiries
committee, and
McBryde, James
C.
Co., Louisville, Ky.,
head
Are
ESTATE_SECURITIES
HILL
the quotations
Willson
new
products, in fact
what has been de¬
York Stock
Associa¬
head
,
Tele. NY 1-1610-11
GOLDSCHMIDT
Dealers, Inc.,
Ewing T. Boles of Co¬
Mr.
Broadway, New York
Lawyers
A.
Robert
whole
a
Member New
York
GOLDSCHMIDT
BERKLEY
Gillis, Gillis-Russell &
Co., Cleveland, will be Chairman'
of
ALFRED
OhiorKentucky
National
New
York
City.
Copies
interesting circular
obtained
from
upon request.
Bristol
,
Incorporated
of
be
Willett
INCORPORATED
may
&
,
CHICAGO
\
1952
DIgby 4-2290
Asso. Member New York Curb Exchange
business conduct committee. Rod¬
erick
OF
Danbury, Conn.
Securities
to succeed
scientific search in laboratories all
over the world, and
Pawling's new
distillate
of
-
•
Curb Exchange
Chicago Stock Exchange
City Natl. Bank & Trust Co. Bldg.
CHARLES
.
carries
approximately ten
times the sulphur content of ordi¬
nary cutting oils and, in addition,
has
EST.
Of N.A.S.D, Bistrici
tion
1946
Members
39
CLEVELAND, Ohio — Peter
Ball, President of Ball, Coons &
Co., Cleveland, has been elected
the
Bldg.
Norwalk, Conn.
Ball Elected Chairman
of
v
Joseph McManus & Co
New
production of
war
tools
of the first
5s,
Exchange
4-2900
South Norwalk Trust Co.
Chairman
1967
Indiana Limestone
Maples & Goldschmidt
63 Wall
New
*
r
INVESTORS
6s,
South
T
4-6551
-
funds.
■
•
WHitehall
D. H. SILBERBERG & CO.
foreign subscriptions
advertisements must be made in
York
STREET, NEW YORK
•
exchange,
New
to
Reynolds Realization
1892
the
and
find
apparent
WE
ANNIVERSARY
for
the
not
experienced.
Telephone:
and
and Central
America, Spain, Mexico and
Cuba,
$29.50
per
year,
$16.75
for
6
months; Great Britain, Continental Eur¬
ope (except Spain), Asia, Australia and
Africa,
$31.00
per
year.
$17.50
for
6
On
le3S
traded
frequently
values
WALL
.
Circular
Possessions $26.00 per year, $15.00 for 6
in Dominion of Canada, $27.50
per year, $15.75 for 6 months.
South
NOTE:
PLEASED
CELEBRATING
imonths;
months.
we
familiarity
little
'
-
United
of
Securities
second-class matter Sep¬
tember 12, 1941, at the
post office at
New York, N. Y., under the Act of
Mar.
8, 1879.
in
broad
our
field
Obsolete Securities Dept.
....
as
Subscriptions
the
securities,
& Co.
Teletype NY 1-5
offices:
Reentered
T
from
H.
Company,
.
obtainable
COMPANY
Ignore that Glib
Quoted
—
Spencer Trask
SUGAR
advertis¬
Chicago—In charge of
Gray, Western Representative,
Field Building (Telephone State
0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C. v
'*•
Fred
Sold
with
,
issue)
with
statistical
issues
Tuesday and Saturday] ...
Other
i
—
Riggs, Business Manager
Thursday, January 29, 1942
Published
AND
Jones, Managing Editor
William Dana Seibert, President
j William D.
Company
Mortgage Bonds, 3V2% Series due 1972
Editor and Publisher
J Frederick
B. S.
Alabama Power
Speculative
,
*0
NEW YORK
Tel.:
EXCHANGE
HAnover
PLACE, NEW YORK
2-051®
Tele.:
NY
1-1011
THE COMMERCIAL
412
DALLAS
NOTICES
DIVIDEND
Fifth
Common Dividend
A dividend of One Dollar
($1.00)
Common Stock B of The
Tobacco
cash
of business
close
Great Southern Life Ins. Co.
All Texas
Stock Exchange
Toronto
Members
Check
Checks will hi mailed.
/
'' ■
'
•
i;;
January 28, 1942>»•.
C*-•,• ?■-J
-.
us
Utility Preferred Stocks
on
N. Y.
146
Thursday, March 26th, at the
be
sent in
as
soon
be arranged
in the order in which applications
are
received.
Price is $7.50 per
positions will
table
W. M. O'CONNOR
Further details may be
person.
Secretary
Cannon,
obtained from Frank Y.
of the Asso¬
Executive Secretary
ciation, 42 Broadway, New York
City (Digby 4-1650) or from any
member of the Dinner Committee.
composed of:
Chairman, J. F.
Sammon & Co.; Robert Strauss,
Vice-Chairman,
Strauss
Bros.;
John J. O'Kane, Jr., Vice-Chair¬
The committee is
Common Dividend
"X-';
An
dividend
interim
(30?!)
No.
128
of
John J. O'Kane, Jr. & Co.;
Allen & Co.; Walter
E. Bachman, E: H. Gibb & Co.;
James Currie, Jr., Hoit, Rose &
Troster; Frederick D. Gearhart,
the outstanding common stock of this
man,
Company, payable March 2, 1942,
Harold Allen,
stockholders of record
business
February 16,
to
the close of
at
Checks
1942.
will be mailed.
Jr., Kobbe, Gearhart & Co., Inc.;
Leo J. Goldwater, L. J. Goldwater
The Borden Company
y
E. L. NOETZEL,
Treasurer
&
Inc.; Irving A. Greene,
& Co.; S. Wellman Han¬
Co.,
Greene
EATON
COMPANY
MANUFACTURING
OHIO
CLEVELAND,
fan.
Dividend
The
Cents
(75c.)
23,
stock of the Com¬
of
record
of
shareholders
close
January
share of the out¬
per
common
payable on February 25, 1942,
pany,
to
Eaton
of
Company
has
de¬
of
Seventy-five
dividend
a
standing
68
Directors
of
Board
Manufacturing
clared
■
,
the
at
February
business
1942.
5,
1942
H.
C.
Secretary
STUESSY,
Hanson & Hanson; Welling¬
ton Hunter, Hunter & Co.; Fred¬
son,
Herbert M. May,
Herbert M. May
L. Roggenburg,
Co.; J. Arthur
Warner, J. Arthur Warner & Co.;
and Melville S. Wien, M. S. Wien
&
Co.; Stanley
Roggenburg &
clared
Five
Class
on
of
Board
percent
to
of
fixed
has
de¬
(Payment
46),
No.
holders
record
of
February
7,
at
close
the
of
All Debentures
1942.
a
business
must be ac¬
companied
by
appropriate
Internal
Revenue
ownership certificates,
properly executed,
ex¬
cept when the Debentures
are
owned by
a
domestic corporation, in which case the name
and
address
of
the
holder
must be furnished.
New
York,
of
the
Debentures
'
W.
C.
January
28,
COX, Secretary
1942
JOHNSON AUTOMATICS INCORPORATED
,
Firearms
The
Board
dividend
of
of
Manufacturers
declared
Directors
an
initial
twenty-five cents per share on
the
capital stock of the Company, payable February
to stockholders of
28,
1942,
of
business
February
record
at
JOHN BABCOCK HOWARD,
Boston,
the close
1942,
20,
Y. —Frank Hill Richards
formerly Spring St.
N.
Moors & Cabot Add
&
Co., has become associated with
Graham, Parsons &
St. :
:■
Treasurer.
Mass.
bot, 11 Devonshire Street, invest¬
ment brokers for over half a cen¬
tury
Boston
and
the
New
Stock
Ex¬
of
members
and
York
South
•']
Chronicle)
CALIF.
ANGELES,
C. Field has
—
become asso¬
Lester
with
ciated
Financial
to The
State St.
Chronicle)
South
.
Financial
Chronicle)
DETROIT,
M.
Public Service Coord. Transport
V:;-'
(Special
to The
Chronicle)
Financial
LOS
BOSTON, MASS.—Theodore P. L.
has
Bell
with
connected
become
J. Arthur Warner &
Bell
Mr.
Square.
has
been
added
Searl-Merrick
of
Hoboken
Company,
1st
with Jackson & Curtis.
was
fSDociai
to
Financial
The
J. S.
Chronicle)
MINNEAPOLIS, MINN.—Ward
CHICAGO, ILL.—Robert Knox F. Tucker has rejoined Paine,
Foster has become affiliated with Webber & Co., Rand Towers In
Chronicle)
(Special to The Financial
and
•IS, 1949
the
to
prior thereto with Blair Se¬
Corp., Glore, Forgan &
(Special
curities
Financial
to The
MArket
$7
At
GAS
MO.—Harry Joseph
Co., Brown Harriman & Co. and Lange has become associated with
Fusz-Schmelzle & Co., Boatmen's
Ames, Emerich & Co.
Bank
Chronicle)
Bros.
Mr.
bank
Espenshade
and
:KN
Co.,
»•'
/y .■■■■ ■■
Reid Hamlin
CLEVELAND, OHIO—J. Ken¬
Boylan, previously with H.
C. Hopkins & Co., has become
with
Stik
(Special
SAN
Daniel
McDonald-Cool-
Mills
to The Financial
Tower.
(Special
SAN
John
Preferred
509 OLIVE ST.
Chronicle)
CALIF.—
joined
Bruce & Co.,
Belmont
Members
Stock
February
record
6,
at
the
close
of
business
1942.
E.
to The
With"
H.
DIXON,
Treasurer.
S. A. O'Brien
We make
L, T, Hood Co. To Be
Dunn
has
CALIF.—
become
SALT LAKE CITY
asso¬
ciated with Henry F. Swift & Co.,
490 California St.
previously
&
man
Co.
with
Mr. Dunn
Walston,
Specializing in
was
Hoff¬
UTAH-IDAHO SUGAR
Goodwin, Schwabacher &
and Dickey
A.
O'Brien, formerly senior
of S. A.
for
and
Formed In Detroit
many
O'Brien
years
&
& Co.
Analysis
a
specialty of dealing in
American
Cyanamid Co.
160 S. Main St.
Bell
Mich.
Bought
Febarury
1st, will
New
York
Stock
65 Broadway, New York
in
their
deal
in
municipal bonds. Partners in the
organization
were
both for¬
unlisted
—
Quoted
O'Brien
has
nected with
recently
Faroll
Circular
on
request
Established
Mr.
Members
New
York
1920
& Thisted.
Electric securities.
in
con¬
Brothers spe¬
Associated
In
Utah
Gas
&
115 Broadway,
New York
Bell System
Tel. BArclay 7-0700
Teletype NY 1-1493
Printing
Corporation,
Sixth
to
mitting
amendment
brokers
in advance of
to
in
rules
per¬
15
days
vote
meetings. Copies of
"Timetable," which will be
found valuable in the preparation
of proxies, may be had upon re¬
quest from Andrew F. Gibson,
Proxy Agent, of Eastern Printing
Corporation.
15
the
Security Dealers Association
1
cializing
House
Avenue, New York
City, has reprinted its "Timetable
for Proxy Procedure" to give ef¬
fect
Bristol & Willett
City, in
been
Investment
Eastern
100
Co.,
department.
merly partners in Hood, Truettner
Sold
Exchange
form L. T. Hood & Co. with offices
Building to
—
of Associated Gas & Electric sys¬
the
Salt Lake City, Utah
System Teletype SU 464
Proxy Timetable
curities, particularly in the issues
firm of Edward A. Purcell &
—
.
1899
5% Cumulative Preference Stock
identified
&
new
request
EDWARD L. BURTON
Established
tem, has become associated with
Buhl
on
Co.
Leroy T.
Hood and Henry J. Phelps, upon
the dissolution of Hood, Truettner
the
SUGAR
AMALGAMATED
with trading in public utility se¬
on
Exchange
& COMPANY
Edward A. Purcell Go.
S.
partner
Thisted
Stock
Financial Chronicle)
Oldest
DETROIT,
Louis
Dividend
meeting of the Board of Directors of
Corporation held on January 27,
1942, a dividend of $2.25 per share was de¬
clared on the $7 Preferred Stock of the Cor¬
poration for payment March 2, 1942, to stock¬
of
St.
.
FRANCISCO,
F.
has
CORPORATION
Gas
holders
Co.
sr
SAINT LOUIS
with
now
FRANCISCO,
Mark
the staff of Heller,
idge
&
Co.,
Union
Commerce
ganization by the addition of sev¬ Building.
eral men formerly connected with
Williams
&
Southgate,
also
a
(Special to The Financial Chronicle)
Stock
Exchange
firm, recently
FORT WAYNE, IND.—Peter A.
dissolved. The group is headed Dittoe, formerly with Wefel
&
by F. Harrie Richardson, who was Maxfield, is now associated with
a
partner
in the Williams & G. Ward Beers & Co., Old First
Southgate firm. The others are Bank Building.
Harold W. Danser, Sr., Harold W.
(Special to The Financial Chronicle)
Danser, Jr., Raymond S. HansLOS ANGELES, CALIF.—Louis
bury, Charles H. Cahill, Royal
Schickram has joined the staff of
Claflin Taft, and John E. Win¬
CALIF.—
is
Co., Russ Building.
Chronicle)
neth
connected
'■
FRANCISCO,
Robert
Financial
■ -■
.1
H. R. Baker &
to The
Lange was
Slayton & Co.
Dearth & White,
Mr.
with
Murdoch,
yi.iXy.:..
SAN
Corporation.
(Special
2-4383
ST. LOUIS
(Special to The Financial Chronicle)
Mil-
with
was
/
3-3430
Phone—REctor
Inc.
141 >. West
In the past
Boulevard.
&
Building.
previously
ILL.—Paul Espenjoined the staff of
J
iu
1891
Chronicle)
ST. LOUIS,
changes, have enlarged their or¬
a
United
York
New
ston.
UNITED
Rippel & Co.
18 Clinton St., Newark, N. J.
Mr. Tucker was an offi¬
Tucker-Needham, Inc.
of
1946
Established
the past
cer
Ferry Co.
5s,
South Spring St.
634
the
in
Jersey City, Hob. & Pat. St. Ry.
Chronicle)
Financial
to The
•Is, 1990
ANGELES, CALIF.—Kirk
Moon
staff
Co., 10 Post
Office
past
MICH.
LOS
MASS. —Harold
St.
(Special
Exchanga
NEWARK
Chronicle)
Financial
to The
ANGELES,
CALIF. —
George C. Gilchrist is now with
Cobb is now with Merrill Lynch,
Revel
Miller & Co., 650
South
Pierce, Fenner & Beane, 45 Milk
Spring St.
BOSTON,
Stock
BUILDING
•■'•■•''OV/v
o
to The
Detroit
PENOBSCOT
Spring St.
(Special
(Special
of
621
Co.,
&
Charles A. Parcells 6* Co.
Members
Mr. Field pre¬
BOSTON, MASS. —Joseph D. viously was with Merrill Lynch,
Hildreth has been added to the
Pierce,
Fenner
& Beane, and
staff of Lee Higginson Corp., 30
Banks, Huntley & Co.
(Special
Jackson
BOSTON, Mass.—Moors & Ca¬
621
Co.,
Financial
to The
(Special
LOS
Wall
Co., 14
Frank
Lamson
Richardson, Et. Al.
&
with Shields & Co. and Washburn
(Special to The Financial
Five
percent to be payable on the
capital stock, and one percent to. be the amount
payable on Class B Debentures (Payment No.
29), out of the net earnings for the year 1941,
payable at No. 20 Exchange Place, New York,
N.
Y., on and after February 18,
1942.
The
dividend on the stock will be paid
to stock¬
SECURITIES
McDougald,
shade; has
and
amount payable
the
be
Debentures
A
dividend
Directors
YORK,
CHICAGO,
:'A
COMPANY
The
,
NEW
Alexander
,
RAILROAD
WESTERN
&
you
H.
E. Hirsch, Lilienthal & Co., Field
Kuehner, Joyce, Kuehner & Co.; Building.
Mr. Foster was for¬
Joseph B. Lang, J. B. Lang & Co.; merly with Shields & Company,
erick; C.i/Kraehlingw Frederic
Hatch
&
Co.,
Inc.; Hanns
& Co.
BAY
GREEN
LISTED AND UNLISTED
contemplate rnaking additions to your personnel, please
send in particulars to the Editor of the Financial Chronicle for pub¬
If
John F. Sammon,
,
thirty cents
share has been declared on
per
PERSONNEL ITEMS
lication in this column.
that reservations
as possible as
It is suggested
Company,
January 26,1942
TEXAS
DETROIT
Waldorf-Astoria Hotel at 7 p.m.
February 20, 1942. Checks will
be mailed.
Security Dealers
Dinner For March 26
on
payable March 16, 1942, to stock¬
holders of record at the close of bus¬
iness
DALLAS,
.
Security Dealers'
Association announces that it will
hold its fourteenth annual dinner
meeting of the
the Common Stock of the
RAUSCHER, PIERCE & CO.
York
The New York
Board of Directors
held January 26,1942, a dividend of
twenty-five cents per share was declared
on
Southwestern Securities-
FL Worth-Houston-San Antonio
NUMBER
DIVIDEND
a
1-1619
^; ;
i
At
NY
New
Toronto
THE ATLANTIC REFINING CO.
COMMON
Tele.
2-7673
HAnover
Edmund A. Harvey- Treasurer
Jackson & Curtis
St., New York, N. Y.
41 Broad
.
.
Dallas Ry. & Ter. 6% 195L
F.W. Macdonald &Co.
on
10, 1942,
February
Pepper
New Mexico Gas Co. Com. & Pfd.
'
the
Quoted
—
Southwestern Life Ins. Co.
stockholders of l'ecord at
.'March 3, 1942, to
Iimin PRETERM
Funds
S.
U.
share
American
in
payable
Company,
per
in
Sold
•***+
Republic Insurance
the Common Stock
has been declared upon
and
Traded
1
—
Dr.
Securities
New York City
Avenue{
146th
Bought
Canadian
INCORPORATED
111
Thursday, January 29, 1942
& FINANCIAL CHRONICLE
Volume 155
!
Number 4039
THE COMMERCIAL & FINANCIAL CHRONICLE
Guaranteed
Elects 1942 iff liters
SYRACUSE, N. Y.—The annual
meeting and dinner of the Bond
Club of Syracuse took
place Jan.
26, 1942, at the Hotel Syracuse.
The
following
officers
■■■':
Stocks
as
and
if
were
Mt»k*n Nrui Ttrk Stfh
President; Donald
Dietzer, Blair & Co., VicePresident; Beverly H. Lapham, B.
H. Lapham & Co.,
Secretary; and
A1
Hageman, Syracuse Savings
Bank, Treasurer.
If you
5^8, 1946
5s,
Tel. REctor
2-6600 I!
Since 1855
Members New
..
.
61
STOCKS
NEW YORK
BROWN
Sold
—
PFLUGFELDER, BAMPTON
GUARANTEED
York
Stock
& RUST
New York
4-4933
RAILROAD
1
Bell
REORGANIZATION
latest
Bulletin
BATTLE
which
new
OF
52
Request :
York
Security
Dealers
Teletypes NY
1-832
&
834
enough in the picture, and for
still
is, to make
believe that any
attempt
me
Tomorrow's Markets
matter
to
through at this time,
go
would meet with failure.
Walter Whyte
*
In
the
❖
last
this
*
two
days the
again recognized
market has
BHiOBB
of resistance.
zone
ing has showed
in
either
to
It is
out
direction; if stocks
are
sell;
more
By
Now
out
I
on
going lower,
ever.
don't
a
relish
limb
any
beingmore
than the next
chap, but up to
writing the market has
this
failed to show
make
ent
me
me
enough to
change what at pres¬
to
seems
be
an
uncom¬
fortable position.
$
:J«
s|s
The rails went
up.
not
last
That
was
surprising. As recently as
week, I wrote here that
their action indicated further
advances.
Of course,
you may
well ask, if that is the
way
felt about them,
I
why didn't
I advise their immediate
pur¬
chase. The answer is, that in
going
they would be close
previous highs and at such
a
stage any purchase would
be risky.
up
to
•
i'
t-
*
*
Long ago I found out how
dangerous it was to buy any
stock
when
the
close to what has
to
be
a
market
once
resistance
to go up,
to
was
proved
level.-
I
are ever
they have to go up
such a level if
they expect
go through. Still there was
too
intangi¬
many
bles in the way.
(Continued
on
page
Rail Stock
There
.
in
has
in
non-operating
436)
income
more
past years.
It is
merely that the traffic is moving.
"Nickel Plate" is
strategically well
situated to get an
increasing share
of this industrial and
agricultural
and installation of
1941
was
carried
the
rise
in
through
the
in
in
wages
the
as
as
revenues.
for
and
almost
no
ent
to
selling
1940
under
this
$3
road
per
share.
completed
a
ferred and
common, undisturbed.
The latest report for 1941
shows
that
the
gross
business
of
this
railroad
boom
traffic
welcome
pres-
conditions
earnings
in
the
which
presumably
evitably follow the
possibility^) of
An
In
operating
a
the implication that they will
afford an important cushion
opportuni¬
voluntary financial reorganization
which left the
stocks, both pre¬
rates,
but their major import lies in
ties in preferred stocks which are
not too active for retail
distribu¬
tion.
1
:Wi
are
give
fillip to earnings under
a
exception to this however,
according to Clark, Kohl & Ey¬
man, is the Boston & Maine Rail¬
road, whose 1st Preferred stocks
of
by
these
economies
appreciation.
speculative
paring
effective operating economies.
Naturally
railroads, contrary to utility
industrial companies, offer
and
constant
recession
must
war.
in¬
The
materially
high
level
of
business
and
equipments, by $27,365,750
to
20%
of
the
total.
or
than offset increased
wages,
Clark, Kohl & Eyman states, and
more
present earnings assure increased
debt reduction which will
cause a
193
Erie
of Wheeling & Lake
prior lien stock and borrowed
shares
$2,400,000
the banks on a
short .term note. Through these
operations, annual fixed charges
from
rapid build-up in asset values to
the preferred stocks of this
sys¬ have been reduced to
: ~
■
:
-
Lehigh Valley
We
an
estimated'
$5,800,000 compared with $7,502,With the common stock
'selling 000 as recently as 1926. Sale of the
at over $2 per share on the
New
Wheeling stock reduces non-oper¬
York Stock
Exchange and the 1st ating income by $460,772 so that
Preferred stocks available at un¬
the net saving since 1936 approxi¬
der $3 per
share, an interesting mates $1,239,000
or; some $3.50 a
situation presents itself to retail
share of preferred stock outstand¬
distributors, the firm believes.
ing.
•
■
would
charges
the
loans
reduce
below
invite
in
dealer
inquiries
and
position to submit firm
a
bids
and
offerings.
has
$5,-
share.
a
the
WALL
Wnitehall
ST.,
3-3450
NEW
YORK
Teletype:
NY
1-Z05D
6%
divi¬
some
the
1
on
preferred
of
arrears
and
more
than
the
bank
With
notes
out
of
would
company
the
have
only $29,582,000 of bond maturi¬
ties, exclusive of serial equip¬
ments, falling due within the next
thirty
years.
These
maturities,
$23,082,000 in 1947 and $6,500,000
in 1950, represent
strong division¬
al,
selling
at
relatively
high
prices and bearing low interest
rates.
CO."
LEROY A. STRASBUR6ER &
for
way
action !
which
loans
Southern Pacific/ etc.
Purchase
tions in
the
of
these
obliga¬
market for
open
re¬
tirement would hardly prove feas¬
ible.
' v..,/--:'
-•.'.V'v;-;'''
1
.;"f!
With the above background
The
reduction
virtual
in
charges
elimination
problems for
it
and
maturity
to come, places
excellent posi¬
years
Moreover, further progress
is likely in 1942. Traffic has con¬
seems
towards
the
Earnings
last
to
$34.91
marked
from
•
years.
shares,
present indications point to main¬
logical
tenance
of
this
the year
1941
to
lower
should at least
levels.
the
re¬
Net
results
added benefit of
fixed
charges.
It will be necessary to replenish
the
treasury, and bank loans will
presumably be extinguished as
rapidly as possible. Thereafter, it
is expected that the management
will
start
market purchases
open
An
these
to
*•
a
closer
dividends,
•
seems
move.
on
blocks
prepared by B. W. Pizzini & Co.,
Broadway, New York City, on
the $100 par capital stock of Nash¬
ville,
Chattanooga
Railroad
recommends
tions
We also maintain net markets in
LACKA., WYOMING R. R. 6s/48
PITTSBURGH
8c
W.
MISSOURI PACIFIC
CHICAGO, MIT,. 8c
SOUTH'N
PACIFIC
VA.
4V,S
as
offering attractive
that
are
cording to
B.
should
Indica¬
earnings for
W.
Pizzini
allow
1941
share,
a
&
ac¬
Co.,
dividend
substantially higher than the
share
per
1941.
disbursements
Copies of the circular,
taining further details
uation
may
be had
of
con¬
on
the sit¬
upon
request
from B. W. Pizzini &
Co.
GARY 5s/48
COLL.
4s/49
Defaulted RR Bond Index
The defaulted railroad bond in¬
SEABOARD RAILROAD
dex
1. h. roihehild &
co.
specialists in rails
11 wall street
Louis
5%S/49
interested In all issues of the
HAnover 2-9175
St.
exceeded $7 per capital
$2
odd lots of
&
Company, which the firm
semi-speculative appeal.
invite inquiries
or
Big Yield
interesting circular has been
52
rate
we
highest grade rails
are
being
as
prior
into
Rail Stock Offers
which
As brokers
We
week/switching
stock
come.
would have
the
amounted /
As
re¬
trend
for a long
Therefore, even
without any increase in freight
rates (which may well have been
to
1942.
year
Marquette
preference
possible
look ;
time
of
share.
last
to
some
end
a
Pere
tinued to forge ahead in the open¬
ing weeks of the year and all
time
reasonable
for dividend action
of
the company in an
tion to weather what storms
may
be encountered in the post-war
More
was
approximately $60,- than half
of the funds for these
000,000
and
net
quick
assets
retirements came directly from
jumped to about $5,000,000.
earnings. For the balance, the
Expected rate increases should
company sold its holdings of 115,-
fixed
$60.00
Lackawanna
hold
of debt. In 1941 the company was
able to reduce its debt, exclusive
close
most
Illinois Central '{
sults for
reduced.
earnings to consolidate its finan¬
cial position through retirement
of
in
lished), the road's operating
The "Nickel Plate" management
has taken the fullest advantage of
the
trading markets
granted by the time this is pub¬
financial
a
crisis when traffic declines is
thus
net
r
mounting
taxes and wage
levels, has
been more than offset by the
field that
appeal
chance
1941
notes
coupon
bank
500,000.
way,
are
operating
6%
of
a
program, including the re¬
plenishing of cash account, would
satisfy
the
management,
thus
.Chicago
New York Central
■
.
highest
Retirement
the
This repre¬
year.
road's
It is possible that
completion of
Bonds,
particularly obligations of
may
1929 and
this
the
annual
Exchange
more
j
the
se¬
Stock
the medium-priced Rail
final
The depressing influence of
T
accompanied
good
net
between
retired
opening
maintain
of
re¬
such
1
cialists in railroad securities. Tiiis
has caused many retail
security
dealers to start
York
York
of
on;jk gain bf less than $4,000,000
latter, part of 1936 and
early part of 1937, according
Clark, Kohl & Eyman, 55 Lib¬
erty Street, New York City, spe¬
Neio
bonds. The entire
own
dend
We
whole
a
in
$7,000,000
income
the
The
Members
New
to net
face
increase of
to
curities in the railroad
have a speculative
Bear, Stearns & Co.
months of last year. Further evi¬
dence of the progress made
by
securities during the:
hi?
days than there has been
be
Issued)
and
maintained properties and equip¬
ment, nearly two-thirds of the in¬
operating income
Box T 45,
Chronicle, 25 Spruce
to 1950 in the amount of less than
a
.in gross between ;1940- and
its
rate.
year earlier and almost $4,000,000 higher than the 1929 level.
Moreover, and indicative of what
may be accomplished with well
the
searching for
firm—now available.
sents
equipment
high degree
than
railroad
last 30
since
(When
The gross revenues of
$60,219,289 were about 30% above those
crease
partner
a
$5,000,000 including bonds held
by Chesapeake & Ohio, might well
operating efficiency.
of
present
over-the-counter securities
Financial
of
Securities
new
have made possible a
of
with
conversant
maining 6% note issue, extended
Reorganization
freight moving between the east
and west (it has done far
better,
for instance, than New York Cen¬
tral), and physical1 improvement
during the depression decade
interest
Railroad
some
railroad management
Interesting
been
Toronto
Street, New York, N. Y.
had distorted earnings re¬
as
be found in the
tem.
realize, that if stocks
to
we
are
The out¬
standing group on the ad¬
vance were^the rails. ■ Natur¬
ally this makes the forecast
look sillier than
possible that, before
There
WHYTE
around and went
up.
were
following them.
days older; the pic¬
change again—pos¬
though not probable.
stopped going
instead it turned
they
be—
many
the market has
that
in
to
seem
ture may
below.
WALTER
During the last few days
down,
don't
a
sible,
still held it would be well
are
least
technically it interested
grass;
position to break
a
at
again between
seems
hay and
is in
Sell¬
tendency to
increase and the
buyers of
last week, are no
longer—or
Market
2-0980
1-395
Montreal
"cage"—at
in
Plate's" most recent
unearned
sults
that
HAnover
NY
operation of all departments in
Moreover, these new records were
hung up without benefit of any
Assn.
DIgby 4-8640
such
Says
Teletype
Al?o thoroughly
The
;
statement covers the best
year in the
company's history in point of gross
revenues, in point of net income,
and in point of financial
progress. ®
STRAUSS BROS.
Bell
ST., N. Y.
Bell
SECURITIES
preliminary report of "Nickel Plate" for 1941, released last
week, makes gratifying reading for those burdened
with the task of
refuting the claim that the railroads are
"through" and that railroad
securities "have no
legitimate place in an investment portfolio."
"Nickel
New
Pfd.
Preferred
<
v
Broadway, New York
So
RAILROAD SECURITIES
in¬
long-term effects of the
PRODUCTION
on
Old
-
will
you
discusses the
RAILROAD SECURITIES
Members
WILLIAM
Teletype—NY 1-310
on.
Copy
50
-
Common
-
New York
triguing question of the
32
1959
HART SMITH & CO.
Exchange
Broadway
Telephone—DIgby
-
retailing RAILROAD BONDS
are
our
Broadway
Bought
issued)
Exfktugt
Dulcn In
120
'>'■ t \\
.
3oscpb CUalker $ Sons
Co.,
>
New Securities
~
(when,
D.
want
Chicago, North Western Railway Company
Railroad
^
elected for the
coming year:
1; Daniel W. Cary, Blair F. Clay-
baugh &
413
of
Rust,
City,
n.y.c.
Tele. NY 1-1293
for
Pflugfelder,
61
Broadway,
shows
Jan.
the
Eumpton
New
following
1, 1939, to date:
36V8, low—143/4,
&
York
range
High—
last—35%.
Christiana Securities
Markets In All
West Indies Sugar
Fire Insurance
Missouri-Kansas Pipe Line
Stocks
Inquiries invited
SALESMEN:
RETAIL
Co.
Merck &
Primary
for retail
suitable
Members
and
York
New
other
Stock
leading
120
BROADWAY,
exchanges
DIgby
Telephone
Bell
.
,
and
LIBERTY
all
the
Branches
in
principal
NEW YORK
STREET
CQrtlandt 7-5593
Towns
and
EGYPT
C.
Street, E.
William
King
7
CLARK, KOHL & EYMAN
Tele.
£3,000,000
,
Information on Request
6
55
£3,000,000
.
.
AGENCY
LONDON
Markets and
1-1248-49
Teletype—NY
Cairo
1
No.
CAPITAL
FUND
RESERVE
NYSE at 2%
on
PAID
FULLY
selling under $3
Exchange
(L. A. Gibbs, Manager Trading Department)
4-2525
attractive
are
Common selling
YORK CITY
NEW
Cairo
Register
BOSTON & MAINE RR 1st PREFERRED STOCKS
in all
Stock
Office
Head
Commercial
Telephone: BArclay 7-3500
NEW YORK
WALL ST.
1
Exchange
York
of EGYPT
lettings the:-.-'
you
for lack of stocks to offer?
present opportunities pass
Laird, Bissell & Meeds
New
Are
scarce.
are
BANK
NATIONAL
STOCKS
RAIL PFD.
SPECULATIVE
Unlisted Issues
Members
Thursday, January 29, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
414
in
SUDAN
the
Teletype NY 1-1047
The Securities Salesman's Corner
NATIONAL BANK
of INDIA. LIMITED
Bankers
INCOME TAX AN OPPORTUNITY
This Week
—
FOR OPENING NEW ACCOUNTS
Bank Stocks
The annual stockholders' meetings of New York banks
have
now
all been
held, furnishing stockholders and investors with annual re¬
ports, comment and volunteered or solicited details from management
concerning operations and condition.
Theme of the annual reports in the light of entry of the United
World War II is the readiness of the banks to do iheir
States into
vduty in helping to win the War by3>—
meeting all credit demands, both
'borrowing
to the
limit of their credit capacity.
■
In view of the magnitude of the
■
billion
$42
Girard Trust Co.
»'
fiscal year War
1943
Nat'i Bk. & Tr. Co.
Land Title Bank & Trust Co.
deficit and the huge bank borrow¬
Penna. Co. for Ins.
Lives etc.
on
ing it will entail, even after higher
taxes and public bond sales, the
Philadelphia National Bank
large New York banks, whi0h took
^
half of the
total bank increase
the
for
Governments
for
3-6s,
will
H
Thus, the data furnished at the
annual meetings on holdings of
securities
Government
takes
largest
goes
on.
To
•
as
.
place
will
term
of
2^%
the
-
issues,
low.
on
those
individuals
who
be pleased to accept his
offer to help them with their in¬
come tax.
Although the response
will
might
who
-j. person
duce
$1.96
;
900
over
creased
2-2280
share in in¬
per
compared
earnings,
share profits for 1941.
might therer
per
feel
that
this
is
liquidity.
Yet,
the
in
to
Some stockholders
any
most
overdoing
also
or
desirable
more
a
if
the
tax
scope
case
whose
Trust,
is Guar¬
billion
$1
it
average maturity
Governments held ($1.1
reported
all
for
ma¬
to 1940, when
an
billion) of 2.85 years.
10 years and over.
Consequently, War financing is
not going to make banks rich by
any
means. They might, on the
contrary, come out of this War
with such a long-term volume of
Government paper
that a real test
solvency might
conceivably
occur in a post-War inflation. No
thought at this time, however, of
of
Other
such
an
banks
not
have
taken
extremely short term po¬
whether average of
5 years or
of 7 years is
maturities is 2 years or
intermediate average
review
bonds
really not material from a liquid¬
an
of
an
cellent
of
of
holdings.
To
?
securities for the
State of Pennsylvania can be
tax
to
prepare
obvious.
This
ask for
invites
aid,
or
the
does not
campaign
an
ability to
carry
and
it
was
term War issues even should
become
Some of the banks, m
pear
ings
term
they
"sticky.
fact,
ap¬
to have been "starving" earn¬
to preserve an extra short-
in
Governments,
for example, held
$1.4 billion in Governments at the
year-end, compared to $1.1 billion
at close of 1940, on which the re¬
position
Chase National,
demarcation point, but even there
liquidity is not involved because
in
is
true
as
days
today
gone
of the
carrying of large excess re¬
serves and spaced short-term ma¬
turities.
Nevertheless, the ratio
:~
■
Charles
A.
Massie
States
way,
was
0.59% in 1941 and 0.61%
would indicate cleanness of slate
j11, the event the banks have^ to
take
long-term, low-coupon War
clean
10
very
maturities.
y'eld
on
hardly be compromis¬
A
the
Vz
of
present
to
years.
rise
in
maturities distribution was main¬
volume
of
tained.
1%
Governments of Chase would pro-
A
bank
replenished
Ltd.
Bank,
Deacon's
Australia and New Zealand
BANK OF
NEW SOUTH WALES
£8,780,000
Capital
6,150,000
Fund
Liability
8,780,000
of Prop.
~
£23,710,000
*
30th
Assets
1941
Aggregate
it
as
1817)
(ESTABLISHED
Sept.,
ALFRED
Office:
£150,939,354
DAVIDSON, K.B.E.,
Manager
SYDNEY
George Street,
of New South Wales is the
has
formed
Brokerage
and largest bank
in
branches
870
oldest
in Australasia. With over
States of Australia, in
all
Zealand, Fiji, Papua and New Guinea,
New
and
London,
and
efficient
it
the
otters
complete
most
service
banking
investors,
to
interested
travellers
and
traders
these
in
countries.
*
OFFICES:
LONDON
-
.
C.
E.
Street,
Threadneedle
29
Berkeley Square, W. 1
47
arrangements
Agency
the
throughout
Bendix Home
with Banks
V.
A.
S.
Appliances
53%
31%
10%
57
29
14
171
44
13
43
Average
J.
dix
8 yrs.,
7 years
133
S.
Sayre, President of Ben¬
Appliances, Inc., an¬
that the firm has been
Home
3 mos.
nounces
1940
54
55
17
28
defense
Ac¬
cording to Mr. Sayre the Chicago
.1941
184
10
15
75
Ordnance
1940
107
30
15
55
that
458
57%
35%
quested
.1941
415
39
22
contract
and the amount be kept
1940
National
36
54
32%
67%
70
28.7
16.5
54.8
.1941
Manufacturers
.1941
1940
Trust
—
■.
York
4 yrs.,
4
194
60
30
24%
6 mos.
19
-48
326
*
33
43 months
30.1
69.9
60.89
173
what
the
chort-term
may,
whole
a
Department
the
has
re¬
the
of
nature
confidential.
39.08
"6.03
H.
r
,
Ruppert & J. Lynch
Join^Scherck-Richter
54 months
(Special
therefore, in
War financing through the banks,
leading New York City banks
on
by the Government.
27%
♦Millions.
Come
substantial
a
contract
4 yrs., 4 mos.
10
4814
197
1940
7%
341
.1941
Trust
5 yrs., 1 mo.
39
39
57
290
1940
New
granted
9%
321
219
Irving Trust
show
which has
Williams
SIR
5-10 yrs. Over 10 yrs.
5 yrs.
.1941
National
Exchange
City Bank keeps such
slate, having
Bank
Associated
Awarded War Contract
589
.1941
...——
Commercial
Corn
First
National
a
.£69,921,933
"'.Vi*'1.
(,
!
$586
1940
Chemical
issues.
This compares with
ing liquidity to double the return, $902 million in Governments Dec.
"Say to 1%, by lengthening average 31, 1940, when about the same
It wouM
Under
.1941
Manhattan..,—
£3,780,192
Deposits
Reserve
New York City, to engage
1940
little
in 1940. Maturities have been kept maturing over 10 years.
Of its
at the low average of 2 years, 10
$1.2 billion in Governments Dec.
months, compared to 2 years, 5 31,1941, 77% matured in 5*/2 years
and the balance very largely up
months at c7ose of 1940.
turn
of
jfuiuL,,--£4,125,963
Reserve
by.
Eastern
Sees.
Bank
Reserve
The Bank
.1941
—
(fully paid)
General
1940
Trust
England
London,
Bishopsgate,
Head
♦Govt.
Bankers
258
C. A. Massie In New York
the salesman
several
desirable
long-1 would therefore probably be the
3
^
the
in a securities business.
standpoint because of the accomplishes
"spacing" of maturities and the
post-War consequences can be al¬
lowed to impede support of the pressure of excess reserves on all
7 months average on $390 million
"short-term" (under 5 years) and its Governments heavily in recent
War effort.
Dec. 31, 1940. At the close of 1939,
"intermediate" (5-10 years) yields years in short-terms is Central
Data
on
present Government
Hanover, whose $613 million in average was 10 years, 8 months on
on Governments.
portfolios of New York banks for¬
Governments Dec. 31, 1941 had an $334 million.
Under
present conditions, the
tunately
show
relatively
light
Maturities of Governments of
average maturity
of 4 years, 3
proportion of holdings maturing ratio of "long-term" maturities
months, compared with 5 years, other leading banks follow:
in ten years and over. There is
(over 10 years)-to capital funds
Maturities
therefore
offices,
DEPARTMENT
Capital
Paid-Up
takes
receive" is another old adage,
return,
ity
of
number
FOREIGN
CHIEF
can
in¬ Company with offices at 32 Broad¬
an
-
if in¬
appearing too forward.
the
helping
of aid in preparing
The advantage of an
approach by the sales¬
This
.
-
procured.
By
dur¬
longer view, but it will bring
results. "■ f'Give—and you will
tax exempt
vestor's
is
risk
those
be interested in
such a plan, this column will
be
pleased
to
answer
in¬
quiries as to where a list of
paid,
fer of assistance and he
acquiring
might
to
as
readily step forward with his of¬
ex¬
method
questions
terest is aroused the salesman
en¬
This is
tire clientele.
lists
an
any
customer to
exempt
before
placed
:
.
Whyte
report.
man
and
stocks
tax
are
has
prospects
dividends
or
indirect
Penn^
as
Manager
William
offering
an
offer to supply a
those
which
be
can
£ who
sition, but of course their liquidity
is not any less strong. For prac¬
tical purposes,
sylvania)
:
(such
tax
interest
the
personal
a
General
'
here on, it is just a short step to
of most securities sales¬
To salesmen located in
property
.
.
the
beyond
are
1727
Charter
OFFICE—Edinburgh
HEAD
1941, can be readily ascer¬
tained, or through offers to help
on capital gains tax matters. From
complicated
States which have
only 2.09 years at the
1941,
even
excluding
of
of
reports
Royal
by
Incorporated
ing
Like¬
experts.
and
of
list
a
gesting that
•
r
The
tax
large
men.
in
average ma¬
an
and
ants
to do so.
in point
maturities compared
Treasury
"weights" offerings with
wise,
Royal Bank of Scotland
on
selected, they should be ap¬
proached in person. This can be
tactfully
accomplished
by
sug¬
group
they have their own account-
Executorships
and
been
desirhelp. Investors of
approach.
business
undertaken
also
Total
large in¬
vestors do not need your help,
to
in
After
;
and
means are
Trusteeships
of
description
every
exchange
and
decreased sales resistance.
-
number one
medium
conducts
Bank
will begin to repay
increased
business
and
now
him
who might be
group
of your
ous
from
ap¬
annual
dividend has been covered 140%
turity
of
objectives. During a discussion of
.£2,200,000
Fund.
Reserve
The
Zanzibar
.£4,000,000
£2,000,000
..
i
this
appreciative
Tsmaller
t
$1.40
fore
be
offer of
assistance.
If you have any
women investors on your list,
with
proached
257
Treasury Bills from the average.
This bank further shortened its
be
|
Capital.
Capital
Paid-Up
Ceylon, Kenya
and
Subscribed
banking
the various items in the report, a
confidential relationship is real¬
ized that is very difficult to attain
under almost
was such as to keep him excep¬
any
other set of
tionally busy during most of the conditions.- The type and extent
evening .hours from Feb. 15 to of holdings in the portfolio, as
March 15, the increased business well as other sources of income
which followed as a matter
of and property owned are revealed.
course,
has repaid him many Probably the most important con¬
times over for this extra effort.
sideration, is that the salesman
has
Here are a few suggestions
definitely placed his client
under an obligation to him.
which should be helpful in""
He
has cemented a relationship, that
selecting the right type of
might
E.
Burma,
Aden
and
Colony
prospects, with an eye to se-#——
they would rate
close
"short-term" banks would be
turities of
Teletype PH
anty
return
maturities
Also,
lengthened
and
York Phone
HAnover
1477
Locust
Governments had
"long-
net
taxes
heavier
after
Co.
Philadelphia
New
Phone
Another
issues. These new issues will
be fully taxable. Assuming a
ceiling
Phila.
war
on
can
person's laziness and dread of this most unpleasant task.
Several years ago, the writer went over his list of active clients
issues if called upon
yields and maturities that the
Treasury
to say the least.
capitalize upon the
ones,
average
security profits, and the bank is
in a splendidly "clean" posi¬
to take on longer-term War
outlook for bank
depends
on
the
earnings
alert securities salesman
Here is where the
tion
there¬
extent,
large
the
happy
Bishopsgate,
C.
>
26,
London,
Branches In India.
To most people, the thoughts
not very
now
the War
■"
a
fore,
;
heavier
even
are
by profits, witn the help of some
This concentration will
tal funds.
become
Co.
Pfd.
&
2039
Chestnut Street,
1421
on
earning asset of New
York banks, accounting for about
60% of earning assets, contribut¬
ing the largest source of earnings
and alone totaling 4V2 times capi¬
the
annual headache
of this
is beginning to think
everyone
:
H.N.NASH & CO.
program.
special interest at-this time. Government securities are at present
trust
Phila. Transportation
fiscal
1941
Provident
in
Office:
Head
.
surely be called upon
heavy support of the financing
year,
when
year
making out their income tax.
lecting
Corn Exchange
investing,
and
—
about
the time of
is
Uganda
and
Colony
.
This
in
Government
the
to
Kenya
relatively
though heavy position
in Government securities that will
help ' them assimilate War issues
ST.
Ruppert
have
with
on
comparatively
capital accounts.
least
...
strain
to The
Financial Chronicle)
MO. —Henry
LOUIS,
and
Joseph
become
Scherck-Richter
Building.
H.
associated
Co.,
L.
Lynch
with
Landreth
Volume 155 / Number 4039
b
THE COMMERCIAL & FINANCIAL CHRONICLE
415
Dunna
Urges Trading
/|Rcliviiy As Yardsisel
Continued frdm First
1
j
Newspaper Quotations Now Make It Impossible
■
To Conduct Business At Profit
;
In
issue of December 18
our
heading.
NASD
we
carried
It disclosed the situation
has
which
of preparing quotations
'for publication in the press.
:
system
the
under
arisen
has not worked out
new
'/'.
»
FIRST
with a request that over-the-counter dealers write
the subject.
/
'
f
On December 25 and succeeding weeks we
presented a number of
yardstick1
wnich
on
request
upon
One Cedar St., New York
:
Russ Bldg., San Francisco
:
'
.
■
CAPITAL STOCK
NATIONAL SECURITIES & RESEARCH CORPORATION
■
*
MUTUAL TRUST FUND
Prospectuses
the
granting
of Unlisted Trading
Privileges ana
the continuance ot such
replies received prior to that date. [ privileges
>
/
should depend, f
i
•;
V "
Today we make room for others which have since come to hand.
"We -'/presume
no
Further, comments and suggestions are'urgently asked.
adequate
Requests
standard has been devised
that names not be printed will be
by the
scrupulously observed.
'vb/'v/b
securities and Exchange Commis¬
on
Income Series
Low-priced Common Stock Series
COMMODITY CORPORATION-
satisfactorily.
Accordingly, I urge that the actual
measure—public trading activity
on. the; exchange—should
be the
concluded
e
their views
us
Preferred Slock Series
the. actual " measure; i.e., public
trading "activity on the excnange
itself,.-and that their application
securities
over-the-counter
on
b
Low-priced Bond Series
;
is blear that these yardsticks
are,
so/to speak, once removed from
article under the above
an
Page)
NATIONAL SECURITIES SERIES
Bond Series
♦
,
.
,
,
Investment Trusts
because
the New York Curb
opinion, the numerous, well stated views of dealers pub¬
lished in your column should accomplish a great deal towards expos¬ iLXchange has been permitted to
ing our problem, and should tend to unite dealers in arriving at a continue, unlisted trading in secur¬
ities that are
more satisfactory solution,
seriously unsuited
However; as I see it, the question of the
tor exchange
trading."
spread in newspaper/quotations is only a small part of the problem
/;•-. In
sion
my
which should be brought out into the open.
Showed
an
offering side/which
too
was
If
Investment
On.the question of "more
public
quotations
newspaper
low
disclosure,''- Mr. Dunne said
allow a sale at.-a
learn that issues could not
to
true,
profit, potential purchasers would soon
be bought at newspaper prices.
Of course, this is presuming that
dealers by implied "gentlemen's
agreements" trade only at reason/
able and fair profits, and not
indulge in the practice of cutting
each others throats just to
get the business from the other fellow
regardless of whether the profit is sufficient to maintain overhead.
.///To me, the real menace to reasonable profits is the policy of
? Stock Exchange firms, and one large firm in
particular, of selling at
in
of
-
the
that
course,
information
an
"It is
<_/ Last
increase
available
on
securities is of benefit to the
pub¬
Abbett's "Abstracts"
lic./ul; fully; agree with this prin¬
sums
ciple.
However, information is
brie ; Of the considerations,
not the most important, which
considerable importance. As "Abstracts"
assumes
the results:
up
,
""In every case where the market has declined
only,
and
Company Briefs
having been the third straight year of decline in the
stock market, the fact that no decline has continued for more than
three years, at least since 1871, as revealed by a
compilation in Lord,
year
years, it
the next
has
turned
Upward in®
succeeding year. For ex¬
ample, the market declined in
1929, 1930 and 1931.
These three
*
must be kept in mind in attempt¬
brought out in a number ing ;to determine the benefit or
of the articles in this
column, there is always a wholesale and a retail injury to the public which might 'consecutive years of decline were
price in all lines of business. Members of the NASD deal with each result from the broadening of un¬ followed by a major turn in the
other on a wholesale basis, but such Stock
In the years
Exchange firms^make no listed/; trading privileges on ex¬ ,fourth year, 1932.
concession to dealers.
They sell to the public at the same price -that changes.* There are many other ;1882, 1883 and 1884 the market
they sell to NASD dealers. On the other hand dealers, and particu¬ considerations, such as distribu¬ declined on balance but turned
larly the large wholesale dealers, sell to these Stock Exchange firms tion,;; public trading activity, and upward during the fourth year.
on the same basis as
.they sell to the orthodox NASD dealers, i Thu size of the/issue that enter into •In the years1 1875, 1876 and 1877
wholesale
prices to retail customers.
As
In recent years,
dealer, who spends his time, abilities and energies, the problem.
overhead, analyzing, choosing and presenting an there/have'; been many securities
attractive investment opportunity,
frequently finds that his prospect which; even after full listing, had
then goes to the Stock Exchange firm to execute the order." Thai a less satisfactory market on the
firm, which has little to do but to write out the order, executes it at ^exchange /than they had previ¬
the same price the dealer would have to
This was
pay wholesale and adds ously over-the-counter.
only the NYSE commission.
This small commission is profitable to due to the fact that these securi¬
the
market
but
the Stock Exchange firm which has expended no time or
effort, but
it would not be sufficient even to cover the office overhead of the
dealer.
/ J//:'.
-///;:///■'•
ket
NEW YORK
turned
result is that the
not
to
It
'
basis
with
to
appears
as
It is
r,
ties
horses
can
"Over-The-Counter"
ma?k£*s—as
business.
well
ties
are
for
//
;|
is being directed against
'share
& Hecht,
Inc.,
67
Wall
St., New York City, have
just issued a very interesting bul¬
letin discussing in detail the out¬
look for insurance and insurance
stocks
tion
in
of
future.
fire
stocks
surance
all-out
the
the
"The
casualty
in¬
in the
face of
our
activity," the bulletin
war
states, ''appears to be
ally
strong
for
the
formance of
exception¬
following
(1) the volume of busi¬
ness written by the fire and cas¬
ualty industries is increasing very
rapidly,
and
large.,., additional
gains are in prospect; (2) expense
reasons:
the
a
classes
of
years."
per¬
;
insurance
Geyer
analyses
stocks,
Hecht,
&
and
of
also
several
which
Huff,
consider
Inc.,
particularly
attractive
at
this
time, may be had from them.upon
request.
-4>.".
/•
auction
average
favorable;" (4) Federal tax
should tend to decline
more
rather
than increase; (5) such is
'leverage' applicable to the
underwriting activity that rapid
increases
in
underwriting earn¬
ings may reasonably be antici¬
pated; (6) the expansion,in pre¬
the
Strauss
mium
revenues
is
producing
of
investible
funds;
insurance stocks offer
an
(7)
the
unusual
degree of protection against (a)
rising living costs and other in¬
flationary developments; (b) the
possibility
of
severe
economic
readjustment
of the war;
following the end
(8) by reason of the
foregoing, together with the
tinued
con¬
increase in demand which
to
the
of
distributing
had
from
Bulletin,
particular
dealers,
Strauss
Bros,
security.
may
quest.
/•
of
berg & Co.
from
-
York Stock
upon
H.
request.
a
the
fourteen
chances
for
to
a
wide
it
eighteen
in
be
is
selected
stated,
demonstrate
V %?.
and
;
;
retained,"
"a, company must
superior
earning
ability and provide other indica¬
:
•;
diversification.
"To
bottom
succeeding year."
'touch with each other.
come
tiation
market.
Actually
an
before
bonds
***
tions
is
taxes.
fixed
a
Interest
on
charge included
with other corporate expenses be¬
fore taxes are computed.
More¬
over,
ex¬
prove
change is only an adjunct to the
investment business, taking care
these
higher gross earnings im¬
the interest coverage
of
bonds, making them more
attractive,
a
rise
thus
in price.
ume
tending to
cause
,/
,
Si
record of the New York Curb
On
Dec.
Exchange for 1940 which shows a
Dividend
stocks
took place;
D.
to
the following
further decline in¬
Si
:
Si
,
re¬
Exchange. Copies of the circular
had
brief leaflet discussing the
a
of
market
ing
138 issues with a trad¬
Prospects: ing average of about 3 shares a
The speculative
prospects for day and 380 issues which averaged
Cuban sugar securities are
partic¬ 20 shares per day.
He said that
ularly attractive at this time ac¬ these issues are seriously unsuited
cording to a circular just issued for' auction trading.
Mr. Dunne
bv D. H. Silberberg & Co..
63 opined that so small a degree of
Wall
Street,
New
York
City, public interest in a security neces¬
be
In,
More
susceptible to auction trading."
Mr. Dunne pointed to the volbe
Cuban Sugar
may
chances
eighteen
total of 52 issues in which no trade
members of the New
-
mar¬
efficient
and
economical
And, of course, the
position of its stock must
costs
which of transactions in those securities
upon
row
management.
interest
a
corresponding1 increase in the vol¬
ume
of
be
and
the next
•
cussing the question of the new
long-term effects of the battle of
production on railroad securities.
Copies
a
during
there have
,
•
.r'.;/-
Rail Bond Opoortunities
should
LOS ANGELES
upward
of eighteen for
out
cost of doing
payments
the
creases
creases
Bros.,
32/ Broadway,
"The over-the-counter market
New York City, have
just issued is/after all, the backbone of the
business—are declining;
(3) the a most
interesting bulletin dis¬ securities business, being a nego¬
loss outlook is becoming steadily
ratios—the
;
'
outstrip other
just as they
for
the
past eight
//;'////' '*:&>
brief
634 SO. SPRING ST.
JERSEY CITY
.
insurance stocks
Copies of the bulletin
recent
15 EXCHANGE PLACE
taxes and higher living
be
equitable.
Portfolio adjust¬
(inflation)
are
coming ments are
made from time to time
during 1942.
What the average in order to
placing a security With a-customer
maintain this desired
at a price different, no matter how investor requires is more income status."
—to meet these rising costs.
His
To prove the soundness of this
slight, from the price of the ex¬
problem is to find it.change transaction recorded in the
,policy, and indicate the efficiency
National
Securities
and
Re¬
of the
newspapers.
Therefore, the buyer
management, it is pointed
search Corp. offers a solution in
and
seller are not brought to¬
out that Aviation
Group Shares
a •' brief
printed ; article
"More
gether." The reason for this is that
appreciated 13.5% from its incep¬
Taxes and Higher Living Costs."
an essential part of the over-thetion on July 19, 1939 to Jan.
10,
In it is pointed out the fact that
counter technique required to ob¬
1942, while the average of 24
tain the best market in this type lower-priced corporate bonds both leading aviation
stocks declined
earning and paying their interest
of security is the process of mer2.9% in the same period.
coupons offer a desirable refuge
chandismg-^-intensive
effort
by
from
inflation
and
higher^ cor¬
To try to simplify his
wayof • circulars, telephone calls,
problems
porate taxes.
;•//
- / .///. ymay be the best program for the
newspaper advertising, etc. — to /
Such bonds, selling at substan¬
investor today.
bring together buyer and seller
Get away from
tial discounts, have claim on in¬
the annoying complexities which
who otherwise would not get in
securities
done
REQUEST
and COMPANY
INCOIfOlAKD
change technique is applied to the
static
market
the
ON
LONG
all times weighted diversification
making a bottom in amongst the stocks of these avia¬
the next year are eleven out of tion
companies which appear cur¬
eighteen.
Failing to do this in¬ rently best situated, rather than
"the
should continue to
have
posi¬
and
total,
W.
market
year,
d&sjtS^readily understandable how
a dealer would be prevented from
Future For Ins. Stocks
PROSPECTUS
HUGH
of net decline the chances of
year
out
"However," he continued,
public is injured when ex¬
restricted volume type of
STOCKS, INC.
philosophy ' of
Aviation
Group
ket declined for a single year and
Shares, Hare's Ltd., the national
turned upward duirrig the second
sponsor of the Fund, says that the
year. /
1
guiding principle in the daily
v
"Expressed in terms of proba
management of - Aviation Group
bility, this means that after one Shares is that of selective and at
trading.
ANCN^MQUJS^
/Huff, Geyer
in
years
third
the
as
suitable
two
turned
year,
and
been eleven cases where the
be
cannot
then
the
exchange trading in securi¬
that
declined
and
•
Mr. Dunne said that he did not
oppose
listed
as
auction
price-/ •//.
;.
the slaughter pen.
As I see
that the thousands of dealers
the
market
three
Besides these examples there have
been three cases where the mar¬
the technique of an auction
exchange
as
balance
on
addition to the present one where
declines have been so extended.
insurance
companies, which -often wish to
negotiate on a sizable block at one
drive thousands of cattle to
"
for
/"
institutions;/, such
a
iC it* is-vei^important at this time
throughout the cbttntry-Jinite for the protection of their business,
and avoid being driven into thatTTWKby, a few firms who would seek
"corner
suited
declined
upward in the fourth
These are the only cases in
year.
successfully applied to securities if
they h&v'e' th'e 1'OiroWmg Character^
istics: 1—lack of speculative in¬
terest; 2—small capitalization; 3—
limited distribution; 4—high price;
5-^desirability for portfolios of
squarely
arriving at
;
.
or
me
it sells to the thousands of dealers throughout the
country,
my conviction that unless this problem is faced
view of
a
not
were
v-
satisfactory solution, the trials and tribu¬
lations of dealer firms throughout the country will continue to in¬
crease
materially.
Gradually such Stock Exchange firms will be
comparable to the chain store, and the dealers will find themselves
relegated to the status of the old corner grocery.
A few men on
to
.
trading.// "
-•/
that the solution of this problem is either to
successfully prevail upon such Stock Exchange firms to maintain a
distinction between wholesale and retail prices similar to the
prac¬
tice of dealers, or to prevail upon dealers and
large wholesalers to
not sell such Stock Exchange firms securities on the same wholesale
-
.
.
mention
much
as
———•——:—-
Silber¬
sarily calls for the merchandising
effort
dealer
of
in
the I
order
over-the-counter
to
bring together
the best Available bid and offer.
of
in
31,
the assets
of
consisted
Shares
95
more
tries.
1941
of
corporations operat¬
than twenty indus¬
Of each
$10,000 in net
as¬
becloud the situation.
Settle the
basic difficulties and don't bother
with the little ones, is the
suggest
tion of Massachusetts Distributors.-
Acting
on this thought Brevits
the following simplifiedconcept of the basic problems and
presents
their
solutions:
"First, because the period is
have
normal
with
date
of the
at
were
(S1.221L
steels
1
market,
in the petroleum stocks
metals
($1,064/
and
($990).
investments
in
Kennecott
Copper ($327), U. S. Steel ($315)
a^d
standard
($308).
respect to
Oil
of
.
New
Jersey
•
investments
this
ready marketability.
"Second, successful prosecution
means
the
war
war
Largest individual should
were
cash.
And a greater
proportion of his
capital assets should be realizable;
some
than
$8,909 was in¬
vested in stocks and $1,091 held in
cash.
Largest investments on that
sets
one
of
general emergency, the in¬
vestor should be prepared for
per¬
sonal
emergencies.
He
should
requires money and if
lost, all is lost.
lie
therefore
own
defense
is
bonds which not only
support the
war effort but as a safe and sound
investment, immune to price fluc(Continued
cn
page
435)
FLORIDA
substantially to their government
holdings
during
the war
and
long
Any
as
would, in
to
Needless
substantial de¬
market.
Saturday's
from
clines
dither this week,
a
showed
the municipal ertheless
say,
Was in
Morgenthau's New York City issues, as a group,
showed
losses
from
last
week
suggestion that outstanding State
and municipal bonds
should be ranging from IV2 to 3 points,
following Secretary
made
This
taxes.
while declines
Federal income
threat of legisla¬
subject to
new
the
of such securities
than 7 points were
outstanding re¬
against
attempted
might
city 3s of 1980 (the widelyheld traction issue) rallied % of a
to
point, being quoted late Tuesday
appraise values, with a definite at 102 V2-103, against a Monday
downtrend exhibited for most is¬ close of 1013/4. Port of New York
investors
and
ers
from
badly as
One favorable
institutional
exempts were not dumping their
accumulations.
It
definite that the
seems
now
administration had been using its
arguments, started years ago, to
tax only future issues, as a verita¬
ble smokescreen. Municipal deal¬
expressed
along,
all
have,
ers
their fears that such action would
wedge, in¬
taxation of
outstanding bonds. The arguments
repeatedly made against the rec¬
as
serve
opening
an
leading
evitably
to
ommendations to tax future issues
the
under
pretense of a revenue
apparently have been too
measure
strong for the proponents to an¬
became necessary to
it
so
swer,
that
admit
the
only
amount of
sizable
be obtained
could
revenue
by that source would
be to reach the outstanding issues.
Conference
The
fense,
State
on
De¬
through
organization
135 BROADWAY, NEWY0RK
more
eral
and
the
of
Solicitor
Epstein,
of
State
New
Gen¬
York,
expressed shocked amazement at
the
Morgenthau proposal to levy
a
Federal tax upon the income
from outstanding State and mu¬
nicipal bonds which had been is¬
sued under the covenant that they
tax
bridge bonds, : etc.,
largely on fees
received from gas taxes, tolls, etc.,
at
We will be glad
inquiry
regarding
/'■;/. „•//
any
answer
them
obligation.
no
Specializing in
ODD LOT MUNICIPAL BONDS
R.ECrummerS, Company
CHICACO ILLINOIS
BLOC
1ST NAT BANK
25%
Gov. Lehman Proposes
should be scrutinized pretty close¬
N. Y. State Income
Tax Cut
Governor Lehman of New
V
submitted Monday to the
recently
Foundation
'
„
v
-
other
the
O11
hand,
of threat of taxation
effect
the re¬
was
may
that
jection by the City Council of
Alexandria, Va., of all bids sub¬
mitted for an issue of $750,000
many
them
of
able, where maturities are not
of
too dong;
-
such
-
/ will
special
-
to
continue
can
creased
Spreads
•/>•!'
Analyzed
f
Broadened
The state of the market was
/
in¬
dicated, in the absence of trading,
in
the
widening of spreads on
most issues.
Where dealers last
week had been
quoting securities
Bridge/ tunnel'« and
-
•».-'////
highway
safety designed to protect them
in emergencies, and a decline in
automobile traffic should- not af-^
feet these securities as much . .as
of
with spreads
of a point be¬
prices, dif¬
of
and
bid
tween
other
asked
sis entitled "Revenue
ized
an
and
Tunnel
-
the
/
passed
was
pre¬
an
as
at the special
emergency measure
session, effective upon signing by
Governor Sumner
Sewall.Y/'
/
'
///
has author¬
issue of $5,000,000
Satur/
$1,000,000 war
augment
to
The bill
fense.
general
bonds to provide
the necessary funds.
The bond
issue will not be publicly offered.
Present plans call for the sale of
the bonds to State funds of both
and
a
ceding $1,000,000 for civilian de¬
ity has decided to complete con¬
struction of the north tube of the
Lincoln
issue
•
Legislature
authorized
:
Major
of New York Author¬
The Port
■
Maine
The
day
Authority to Sell
Bonds to State Funds
elements
contain
bands
revenue
$1,000,000
Port
Security
Revenue, Bond
f
•
to
make, up part of the drop.
;
? - f v
-
- *
-
War Bond Issue
bond
in¬
earnings
taxable
in
the Gov-
counting con
is
pernor
years
•
Maine Authorizes
-
their
hold
/bonds, in my opinion."
considerably
cut
be
next two
/ the
.
those
as
just mentioned are not pres¬
ent in a serious degree, banks
-
<
where
and
considerations
•
1981.
the
well as
as
rapid change in the economy of
the, people of the State, expected
to be accelerated by the war.
Although the State tax bill
a
-
is reason¬
where debt
4 hand,
lack
,
On the other
market.
ready
spending,
sened
also suffer from the fact
/ until
Throughout it reflects les¬
year.
-bonds
Municipal
structure.*
one
departments of our national
economy/according to an analy¬
Bonds In A
ferences
yesterday
widened to
War Economy," prepared by B. J.
several points.
Some dealers re¬
holder of
fused quotations altogether on a Van Ingen & Co., Inc., 57 William
exempt.
to.
"
Chairman of the Conference,
were
handling Flori¬
comprehensive
,
Epstein Shocked By Change
Henry
a
us
bonds.
municipal
TEL.REctor 2-1737
Oldest House in America
.
,
gives
which depend very
improvement bonds on Mon¬
which the States and municipali¬
day. Municipal bond circles be¬
ties have presented their organ¬ lieved that the high bid for that
ized
opposition to Federal at¬ issue of 101.28, for a fixed inter¬
tempts to gain control of local est rate of 21//2%, was from 5 to 6
financing, denounced Mr. Mor¬ points lower than the city would
genthau's attack on outstanding have received before Mr. Mor¬
bonds.
'
;'v:
./>• genthau made his speech.
an
issues
da
toll
bonds,
long experience in
Our
■
fer approximately $12,000,000 of
York scheduled charges until after 1971
Legisla¬ in the face of uncertain war con¬
higher quotations were placed on
the Triborough Bridge and Penn¬ compiled data showing that in no ture a State budget which will ditions,
and thus., keep future //
case did
a state derive less than
drastically and ; immediately re¬
sylvania Turnpike issues.
generations "from 'getting a free ./
Concrete
evidence of the J 16% of its revenues from gasoline duce the State income tax burden. ride."
better feeling in the market,
taxes, 16 1 states collected more It calls for a 25% emergency re¬
Roy S. West, Bridge Auditor,
than one-third from this source, duction in the income tax pay¬
if not a definite reflection of
opposed the plan as offering in¬
and one state, 50%. The governor able this April 15 and April 15,
the belief that Congress will
consequential
immediate
relief
of New Jersey recently estimated 1943. In terms of cash, the move
balk this year at granting Mr.
and increasing total costs from
that there would be a decrease of reduces the State income tax bill
Morgenthau's wish to reach
$14,701,025 to a possible >: $17,one-third in that state's gas rev¬ by $21,600,000 this year and by
the
outstanding issues, was
047,790.
enues.
afforded by the sale Tuesday
$19,000,000 next year, as com¬
///>' ■ Z\ •"
The plan as submitted by L. M.
of $1,000,000
pared with what taxpayers ex¬
State of West
"The gradual retirement of
pected to pay. " Actually the sav¬ Kaiser/ bond dealer, and advoVirginia
road
bonds.
The
state
and
municipal
debt
cated by Director Arnold Haase,
i State received an interest cost n
through serial maturities will /■ ing over last year's tax bill will
:
be virtually
doubled, ^ since the would involve brokerage fees.
basis of 1.73%, which is subbe an offsetting factor in some
It would call for an ex-' t
1% >■ "emergency"
over-all tax
stantially
higher
than
the
cases as the interest load, of
ii-i'V'i
yielding $21,000,000 annually / change of some 55% of out- > :y<'
1.28% cost basis obtained on
course, will be thus reduced.
standing
non-callable bonds
»
a $500,000
issue last Septem- t 4 In municipalities where city 4 since\1936 was- not reenacted last
for a new issue of $19,175,000 V
ber but is considered satis¬
year. ; *
/ ,
V
//
license fees for vehicles are
in callable bonds, extending//
/. The budget itself ,is $380,700,factory
under
the
present
important/ there also may be *
the final maturities 10 years /
conditions.
/./
000, or five millions less than last
some weakening in the credit
any
way
;
lebenthal# Co.
point. On the other hand, revenue
Research
con¬
the fact that the
holders of tax
fused picture was
big
the
in
sign
obligation.
background of familiarity with these
few slumped as Authority bonds recorded gains of ly. This is true also to some extent
the New York City 3s. about a point, while fractionally on all municipal bonds. The Tax
although
sues,
and
cost
or
without
institutions,
dealers
stand¬
scarcity
a
for
taking, appraisal of estates
-
are
somewhat
become
valuable
The
deal¬
sulted in selling pressure as
:
in a some¬
States and
municipalities will drop most pub¬
lic projects and new offerings will
be scarce. Short-term municipals
with
their -tax-free /provisions
"Municipal bonds
bonds.
FLORIDA
MUNICIPAL BONDS
QUR service includes the pains-
v
.
what different position.
shown in cer¬
tain New York State
$20,000,000,000
tion
ranging up to more
MUNICIPALS
opinion, be a.slight
my
down-trend.
trade
LOT
ODD
will not change;.1 much so
the conflict - continues.
change which does occur
prices
Municipal News & Notes
Thursday, January 29, 1942
CHRONICLE
THE COMMERCIAL & FINANCIAL
416
refunding
Sales Y
//•'
J
.
'
Scheduled
list/ herewith > the
We
more
offeri ngs
short term
municipal
important
•;
($500,000 or over —
excluded), which
issues
come
to
are
./,
in the near future./The
of the successful ? bidder
up
names
the
and
last
the
for
runner-up
also ap-,
•■: YY Y//
previous issue sold
are
pended.
*
.
in¬
%
30th /'/ :;Y;/Y'Y'Y'
these securities, every insurance
stalment of the fifth series of
great many issues, declaring that St., New York City.$650,000 Charlottesville, Va. »
T
company, every bank, every pen¬
/ The
underlying provisions of 31/4% bonds. It is understood the Smith, Barney & Co. of New York, was
it was pointless to post nominal
sion
and
retirement
system
revenue
bonds* the study states, issue/which hiatures in 1977, will highest bidder for the last bonds, awarded
quotations.
b& sold to the State funds at 99, in June, 1939. -Second highest tender was
throughout the country is, now
recognize and take into account
Federal Government securentered by B. J. Van Ingen & Co., Inc. of
He
that
added
every
faced with this brazen repudiation
ities,
«
by the Treasury of the promises
and
made
by
our
have
which
assurances
States and cities in
Mr.
Epstein
thau,
in
challenging
him
a
The
have
tax-exempt
appeared
recovered
continued
the
Tuesday
somewhat
to
from
the initial shock Of the Secretary's
unexpected
possibility
lished
ever,
on
was
Monday.
Activity, how¬
restricted
ket waited to
is
the lows estab¬
see
as
the
mar¬
"how the wind
blowing."
A sufficient
degree of stabiliza¬
tion developed,
however, to allow
municipal bond firms which had
suspended publication of bid and
asked
cause
quotations
those
quotations
Closing
somewhat
at
which
made
on
Monday, be¬
of the confusion, to resume
on
dealers'
absence of trading in mu¬
nicipal bonds was attributed to
uncertainty as to the attitude of
Congress to , the proposal of the
Secretary of the Treasury. Bond
men
declared
that
gate of
clear
indica¬
and corporate
His comments on mu¬
prices,
here
than
sales
the
while
prices
had
Monday afternoon,
been
nev¬
«
As
sharp a decline as
35%
traffic on the re-/
cently w completed
Pennsylvania
Turnpike - during.•*, the v.
.
ensuing
year
would leave ,a
i
payment
of
operating and interest charges
of
approximately
$265,000, '
/assuming a continuation ; of ....
after
surplus
the
first
v
the
originally
had
planned tu
use
authority
bee n
Trade Extended
"/
original-group
ment firms
trade:
as
reprinted
being of interest to the
are
"
"Under the circumstances it ap¬
pears
penses,
it is stated.
/
that
most
banks
will
add
has
as
to
be
bonds optional for
■■■<:
appraised
on
its
determined by its oper¬
ating experience, but the
mental security inherent
funda¬
in
principle of public revenue
financing is common to all."
District
to a syndicate-headed
by
York.
Runner-up in
the Harris Trust & Sav¬
Shields & Co. of New
bidding
the
was
ings Bank of Chicago, and
associates.(
Feb. 3rd
-
-
•'
v.
1947
may
be
the
bond
'
r
,•/
'
•
$2,157,000 Yonkers, N. Y.
Stuart & Co., .Inc., of New York
syndicate which obtained the
headed
the
award of the bonds offered
et
last June, beat¬
Phelps, Fenn & Co. of New
'
•,■■ /;
'
,/v., ,
out
ing
al.
.
(
$11,000,000 Milwaukee Co.,
Last
the
June
Yorkr -v,:';/^ ■-
;
Feb. 9th
of 39 invest¬
Lehman
//Z////
Md.
the preceding issue awarded
1941,
April,
Halsey,
Under the plan certain
„
merits
in
■
.
county awarded
'
Wis.
bonds, the
purchaser being the National City Bank of
York group.
The Northern Trust Co.
of Chicago,
and associates, was
bidding on short-term,
The
First
&
Trust
v..
second best,
callable obligations;
Feb. 10th
$522,000
^
I
New
to
ject
follows
bonds
>
i and
Co.
Feb. 2nd
twelfth issue of Metropolitan
This
;
and banks headed by
Drexel / &
'v/
$920,000 Baltimore Co.,
Philadelphia, through its Coun¬
cil, has extended to June 15 an
offer to exchange bonds through
the
//, .■'//''////
York, and associates.
New
:v-
current funds
Philadelphia Bond-
Brothers.
year's operating ex¬
municioal
holdings.
nicipal investments
better
It
.
to
approximately 3.30%.
of
the
for
,
redemption up
exchanged for
"We have referred to the Turn¬
funding bonds of 194L The offer,
pike to - illustrate the factors -of
in effect since June 9, 1941, would
safety which are built into public
have
terminated
otherwise
on
revenue financing and which a?e;
Jan. 31/
/•/../ V// : : '/
' ' '■
ings by Banks Predicted >
manifesting themselves even - in
To date $81,656,000 of the bonds
James H. Clarke, assistant vice this new project only slightly over
has been tendered for exchange
president of the American Na¬ a year old. Many older projects
out
of
$131,064,000
originally
tional Bank & Trust Co., Chicago; like the /Kentucky Bridges,
the
eligible.
addressing the Wisconsin Bankers Louisville Bridge, the Port of New
Association at its annual mid-win¬ York Authority projects and the
Golden Gate Bridge
ter meeting last Thursday, on the Philadelphia - Camden Bridge,
Refinance Plan Deferred
subject of "Bank Investments in a have accumulated substantial re¬
Golden Gate Bridge Directors
War Market," said it is logical to serves for maintenance and bond
exoect some decline in the aggre¬ interest and have paid off many of recently voted to postpone until
Feb. 13 a decision on the revised
their bonds. Each individual pro¬
late ' Tuesdav.
actual
requirements
legal
cost
interest
an
traffic
Of
good •*> years
of the lean years.
that
in passenger
:.
attack,
which
had
tions, one way or the other, of
nearly demoralized trading Mon¬
Congressional
intentions
would
day. Prices among some of the increase market
activity quickly.
more
active issues, notably New
York City loans and some of the
Decline of Municipal Hold¬
public
authority
issues,
rallied
moderately from
The
tax, however, gains were only
The
for
market
must take care
raising the corporate sur-
moderate.
Stability
municipals
of
.',v
Market Regains
Some
of
on
question of exemption.
-that-"Volume
t
engage
debate
pre¬
fact
fluctuates -and
/
creation and maintenance of sub¬ ^ito, pay Tor the ; construction,
stantial',: reserves,
together with Z, but in view of the present
Morgenthau of
* uncertainties
created by the
the margin of coverage of fixed
any intention to tax outstand- 4
charges, based upon the forecasts /;• f war, it .was decided to coning bonds on which the Gov¬
;> serve
cash and issue bonds
ernment had given its pledge /' of the traffic engineers afford un¬
«■
for the needed money.
to impose no taxes.
Because / usual safeguards against defaults.
Morgen¬
to
nation-wide radio
a
the
Monday sent
on
Secretary
to
the
the
York and New Jersey.
The issue will be the third
Secretary
by
moment by the Fed¬
Government itself.
telegram
on
The improvement
based upon the disavowal
was
.
recognized and honored down to
eral
back
after 4
day.
vious
good faith and which have been
the present
recovery
some
set
their
hand,
other
the
on
showed
been
New
->
/
Maryland/State of
I
/ VY
Bank, and the Harris
Bank, both of Chicago,
National
Savings
jointly, obtained the last award, which took
place in June, 1941. 1 Dick & Merle-Smith
of
New1 York
was
the runner-up in the
bidding.
.
s.
...
Interested In Sugar?
An
analysis
of
Utah-Idaho
by Edward L.
Burton &
Co., 160 South Main
Street, Salt Lake City, Utah, has
plan to refinance $35,000,000 of
just come off the press. The out-,
bridge bonds after their attorney
look for the stock is most promis¬
told them the plan was illegal
ing according to the Burton Com¬
without a public vote.
Proponents urged adoption on pany, which will send copies of
the analysis upon request.
the
ground that it would deSugar,
prepared
,
Number 4039
COMMERCIAL & FINANCIAL CHRONICLE
INSURANCE
'■dustrial Teamw
NEW
AUTOMOBILE
YORK.
THE COMMERCIAL & FINANCIAL
418
mildly.
on
But
the
sioned
No
of the retreat
Peninsulaocca¬
news
Malay
7.7,V
sinking spells.
Thursday, January 29, 1942
-CHRONICLE
French markets in Lyons and Monday, in the form of reports
reflected advancing1 prices that the vanguard of a new Amer- *
Expeditionary
Force
had
in recent sessions.
Limits of daily ican
variations have
been somewhat landed at an unnamed port in
Northern Ireland.Several thou¬
expanded by the authorities, and
pn
Paris
market trend pre¬
vailed at London during the last
six
sessions.
Gilt-edged
issues the demand for
general
were
well
and most
their
ground.
supported
immediate
,
rises
stocky prompted
to
Ihe
limits.
sand
this
strong,
secretly
moved
force
the perilous Atlan¬
over
There .are no immediate reports tic, and landed w.thout the loss
held
of a single man.
Although rein¬
Merchandising shares dipped, of trading on exchanges in enemy
forcements
seem
much
more
European Stock
however, on disappointing earn¬ or other occupied7 countries of
necessary
in the Far East than
: 7
*/
■ •%"
ings of a leading company,1 Latin- Europe.
Small price variations and modest trading remained the rule on
in
the
United
Kingdom, where 'v7
American
loans
attracted
some
the London markets for securities in recent sessions, with war devel¬
^•American Expeditionary Forces • several million soldiers are wait¬
buying, whereas Australian and
opments providing one of the more important pivots on which the
other Far Eastern securities were v What is probably little - more ing idly for war orders, the arrival
market turned alternately soft and firm.
Cheerful occurrences, such
of our forces was hailed on both
v
marked lower.
than r an intimation of develop¬
as the able speech of the British Prime Minister and
the course ot
sides of the Atlantic.
The propa¬
Occasional reports of dealings ments to come was afforded on
the
Inter-American
Conference, stimulated the British market
ganda effect of this incident in
industrials
Markets
•.
countries in Europe is, of
hardly to be exaggerated.
enemy
course;
At
White* Hause
a
press
Tuesday,
Presi¬
Roosevelt asserted that;
conference,
dent
is
States
United
the
sending
possible help to the South"\VcS*eiii Paeuic area with the 7
all
greatest dispatch. He suggest¬
r
to single
that it is absurd
ed
Ireland
expeditionary
an
as
Northern
in
force
the
out
>
,
since this country has
eight or ten expedition-
body,
six,
The Presi-
tne United States.
-7;
declined
to
regarding
pointedly
dtnt
questions
answer
--i
i
•
outside
already
forces
.>ry
>
7
location of such forces.
the
Some indication of the tasks to
assigned to our iorces in Ire¬
was furnished by Prime Min¬
be
land
Cnurchill, Tuesuay, in his re-
ister
In Your
Community
,
port to Parliament on the course
of
the war.
Very considerable
those
follow
wdl
.orces
already
and
stations in the BritIsles,
imparting to British
forces a greater freeaom of move¬
said,
Churchill
Mr.
landed,
tney will take
isn
than
been
possible.
iorces
You
probably know several life insurance agents in
They
community.
your
have
instrumental
been
placing large and small amounts of insurance on
lives
of
citizens.
fellow
your
the
Whatever
total, this life insurance is really money for women,
and
elderly .people,
money
bread and butter, a roof over their
provide
to
heads, and
777
7-:77
In most
day,
not been
the
not
the
on
the British
Governments.
Since the landing was effected in
States
United
which is ruled from Lon¬
to have little
seem
of
who did
a
real job in selling
We know that most people
be well insured if it hadn't been for
some
would
agent.
appears
to
Battle
have
transferred to our own
been
of
being the
Atlantic
the
Atlantic
the
time
the
For
of
bearing
the situation.
Battle
would not be there had it
Dublin
from
protest
the
don,
on
money
for the agent
insurance.
Ireland, Tues¬
the ground tnat he had
been consulted by
not
'7'77 '7-
cases
American
of
arrival
tne
would
of the comforts of life,
Free State, pro¬
troops in Northern
Ulster,
some
Prime Min¬
Valera,
de
Eamon
ister of the Irish
jluu
children,
aid in the At¬
lantic, the Prime Minister added.
tected
the
naval units will
our
continue to extend
■»
in
Ger¬
bombing
in
and
while
many,
aerial
American
to assist in the defense
are
br.tain
ji
have
otherwise would
ment
broad
the
wnich
ocean
side
sepa¬
and America, for
ship
sinkings
were
off our coast, while hardly
rates
Europe
numerous
noted
comparable incidents are in¬
There
is
little current activity in the
direct -struggle
between Britain
and Germany.
Occasional aerial
raids
are
made
by either
side
any
We also know that
of
our
families
insurance money
according to records about 80%
receive
little
or
nothing
but
life
when the head of the family dies.
dicated in European waters.
against the other, but the Atlan¬
tic
patrol apparently is too danger¬
for the German submarines
than on our own At¬
ous
elsewhere
lantic Coast.
ob¬
endeavor
German
The
viously is to draw back from
the Atlantic lanes to Europe
much of the naval force
now
protection of
supplies
in the
engaged
the broad highway of
to
European associates in
our
this
Since the initial at¬
war.
tack
lost
on
The U. S. merchant
steadily.
ship
a
COMPANY
vessel
noted at
Ciltvaira
same
time.
tanker
Var-
the
Norwegian
The
went
week ago, and loss of
Latvian
was
Atlanta
of
City
down
the
INSURANCE
increased
has
shores
our
MUTUAL LIFE
Long
Jan. 15, the toll of
shipping in waters off
Island,
MASSACHUSETTS
off
reported
was
sunk off the coast
of New Jersey, Sunday.
The
anger
Springfield,
U.
Massachusetts
Perry, President
ore
carrier Venore was
sinkings of
sunk Monday, and
the
Bertrand J.
S.
was
Organized 1851
tankers
Francis
nounced
In
E.
Pan
Maine
Powell
were
and
an¬
Tuesday.
grim comments on the sink¬
ings, a Navy spokesman asserted
in Washington, late last week, that
counter-measures
against the U-
.
Volume 155 ' Number 4039
boats
being
are
taken,
and
THE COMMERCIAL
For the rest, the story,is an in¬
credibly dismal dne of ineptitude
our
territorial
en¬
waters
will
never
joy the return portion of their
voyage."
Secrecy as to sinkings
of
German
,
maintained,
the
submarines
it
be
indicated,
was
will
on
alleged ground that informa¬
tion
regarding
give aid
«
would
such
and
sinkings
comfort
to
4-Thetradegy-involved
and
that
"some of the recent visitors to
& FINANCIAL CHRONICLE
dents
error
which
reflects
loose¬
and incompetence /from : the
top to bottom of the Admini¬
stration in Washington and the
military forces, in those relatively
carefree-days before Pearl Har¬
tion
hardly escape criticism.
can
the
as
destruction
ness
enemy /.submarine
very
.
base
bor.
It
is
in
noted
the
without
Pearl
Harbor
squadrons
thereof
American
:
an
MacArthur
minds
and
hearts
.
with General Douglas MacArthur and his valiant forces on
were
Bataan
that
Peninsula,
the
was
eral's
sixty
President
occasion
Monday,
second
an
to
of sound
means
bv
discovery
volved
a
to
whom
reported.
disposeition of
forces in
aster,
officers
was
a
manner
to
In
a
|
will
is made another in his series of
great
stand and vital war
speches, and con¬
document on founded his
critics by calling for
already seems sub¬ a vote of confidence from the'
good deal of uncertainty. British Parliament.
The cdnduct
countless
expressions
editorial
the
and
other of the
war
has
report
been
the
in
in¬
their proper share of responsibilty While he
It
Washington
were
not accorded and
the
aerial
for the disaster. Perhaps it will be
States,
invite dis¬
necessary to await the end of the
very
our
although such forces
were
has occasioned increas¬
the ing discontent in
England, since
made, these last Japan entered the conflict
by at¬
few days, that the highest officials
tacking Britain, the United States1
point
on
war
for the full
storv.
^
Netherlands
was
Mr.
well
East
Churchill
answer
(Continued
on
the
could
Page 422)
of
in
MacArthur,
which he praised the magnificent
stand of the American and Fili¬
pino
troops.
Churchill
his
Prime
added
speech
before
Minister
in
encomium
an
the
House
of
Commons, Tuesday.
The
Island,
>'
of the battle
course
the small
•
on
peninsula of Luzon
in
continues
the
to
Philippines,
suggest
only a
brilliantly con¬
against
enormous
losing .fight,
ducted
odds.
The courage displayed
by MacArthur deserves more
support
%
than
dication
of
last
our
that
fact
Japanese
in-
rein-
K\
impor¬
Philippine outpost.
heartbreaking
be
assist¬
no
adequate
forcement of
tant
verbal
but there is still
ance,
*
The
naval
"•
to
seems
and
aerial
superiority, though it
be temporary, precludes
'
may
the
aid
that
MacArthur
so
richly merits.
Upwards
soldiers
in
of
are
the
200,000
now
Japanese
believed
Philippines,
to
be
pounding
at the small defense forces.
away
The left flank of
our forces, rest¬
the China Sea; was pene»trated by infiltration and landings
from ships,
last Saturday. This
Japanese maneuver
was
coun¬
tered by a vigorous attack from
the right flank, Sunday, and the
ing
on
front
was stabilized, for the time
being. Our aerial forces in Luzon
are
pitifully inadequate, but
are
reported
making , brave
forays
against the enemy. Small torpedo
boats again raided the landings of
the Japanese in Subic Bay. But
correspondents' with
press
Arthur noted
troops
for
Macthe pleading of his
aerial
more
support
from the nation with the greatest
airplane
production
facilities
in
the world.
Pearl
Many
.
Harbor
Findings
of the essential
No Whole is Greater than its Parts
circum¬
stances relating to the disaster at
Pearl
Harbor,
in
Hawaii,
now
have been disclosed, but the re¬
sponsibility for the Japanese suc¬
.
Sub-contracting
Dec. 7 remains to be prop¬
cess on
erly assessed. The special investi¬
gating committee appointed by
President Roosevelt submitted
its
findings to the President last Sat¬
urday, and the full text of the re¬
port promptly was made public.
Until
port
Mr.
Roosevelt read the
doubt
some
prevailed
re¬
in
,
Washington 33 to whether the
public would be permitted knowl¬
edge of the text.;
/...
The
■1
report
Associate
submitted
Justice
of
the
;
,
,
J.
almost
Admiral
and
Gen.
to
C.
The in-
not
giant that is America, the
success
quiry revealed that warnings
of impending warfare were
a
officers
y
ments.
land
>
^
far greater part than in past
necessarily must:
produced under sub-contract each
transitional
necessity of
Where credit is
can
be, and
manufacturers.
period,
installing
are,
sub-contractors
machines, of
many
other adjust¬
required, the Chase National
of assistance
throughout the
to many
arms
-
.
precautions
were
is
it
against
attack
not taken, however, and
inescapably
clear
that
the two officers must bear the
odium.
.,
'
yr."-.
.
!!
' L.L
THE
CITY
not
contractors but also to sound enter-
prises, large
small, which
or
are
capably undertaking
indirect defense work.
year.
THE
production
only to direct
:
CHASE NATIONAL BANK
OF
established
quickly, cooperation is offered
from time to
time, and some
of the warnings were quite
pointed
in
the
period just
prior to the attack. Adequate
o
new
T^iat the wheels of
may turn more
reaches flood tide,
worth billions of dollars
this
Bank and other commercial banks
:
upon
year
in
the
retraining personnel, of making
part often
help speed over-all production, i In the next
armament
be
a
face
effort
our arms
the sub-corltractor is called
months. As the full
victory effort
s
of
enterprises—playing
play
Now,
alone measured by its large
and unknown but of
major consequence,
Kimmel
Short, the commanding offi-
transmitted to these
smaller
he is destined to
upon
Walter
at Pearl Harbor.
the
unseen
Rob-
entirely
Husband E.
Lieut.
cers
t
are
the blame for the Hawaii dis-
aster
strength is
More and more,
erts, and his associates, placed
Owen
is the industrial
corporations. Vital to the
by
preme
as
nation's
Su-
:
Court
Great
Nationalin
Effort|
OF
Member Federal Deposit
NEW
YORK
Insurance Corporation
not
criticisms,
the
message
Indies.!
absent in the United
for
marked
open
congratulation
miles
conclusive
Harbor
it
enemy
birthday.
Roosevelt
by
supervision of the de¬
fense precautions the Administra¬
pf air¬
130
the
as
-
<
the
of the Gen¬
occasion
-
but apparently thought
assault
on
Hawaii unlikely.
careful
concerned. Whether
apparatus, and also a total lack
of appreciation of the
meaning
For this attitude and for the lack
of
soldier
some
bility of Japanese attacks in the
General
the
ject to
ambitious
an
plane
Far. East,
-
of
Pearl
American waters than is reflected
:
the
of that incident.
It
involved the accidental
discovery
Churchill Reports
is candid
In
an
accounting before
the *
the point House
of
Commons,
Tuesday, <
information
of Prime Minister Winston
Churchill
report
up
to
where
by
Roberts
report that the psychology of the
Roberts
and
by
the
significance
in official admissions
side.
an
sufficient for defense of the base.
U The
revealing,
military
possible value to
authorities
from the base, by
our
of
outside
realization
the
Berlin
radio nation was much like that of our
enemy. -The
claimed, meanwhile, a far heavier Hawaiian commanders, who may
toll of merchant ship sinkings in- well have • considered the possi¬
on
such inci¬
419
*
Thursday, January 29, 1942
THE COMMERCIAL & FINANCIAL CHRONICLE
420
|
■
out
put
Hearst
by
cepted at the time
of what
FROM WASHINGTON
NEWS
and was ac¬
his version
as
the New Deal should be.
the time Hearst
At
Roosevelf
ing
AHEAD OF THE
;
was
The
support¬
movie
was
"Gabriel Over the White
called,
He
of his head.and
hovering
death
he
he
moved
changed
a
out
he
vinced
has had
unem¬
'
Mr.
Roosevelt
will
be
60 years old
tomorrow
(Friday).
And
con¬
He-
them.
outwit
complex that he could
ever
since he came into
The
American
people, ployed; on one occasion a mob do this
This writer re¬
according to the movie, had elect¬ was moving on Washington and office in 1933.
ed a playboy to-the Presidency., against the advice of the Secret calls the rather pathetic appeals
He was
unusually close Uo his Service men he walked right into of Hoover for Roosevelt to come
Secretary. Shortly after being in¬ the midst of them and moved to Washington and confer with a
augurated a and with the indica¬ them back with the promise that view to continuing the Hoover
.
throughout the country there will be birthday balls for the most
amazing man ever
to attain the Presidency of this country.
Thousands and thousands of dollars will be' collected for-the benefit
can
a
House."
'*■*-
.multitude
Mr. Roosevelt is
statesmen,
He
man.
the
feed
to
the
tasted
who
world
finally hooked by European
was
unconscious¬
of his
out
was
When
weeks.
several
for
came
ness
the
of
acclaim
and
life
Wilson
Woodrow
unconscious
was
between
,
tions being that he still intended they, would be fed.■.*'Well,.sir, this foreign policy. * The London eco¬
victims, the disease which struck him down in the full to
man
moved through America in nomic conference was coming up.
carry on his playboy life, the
growth of his manhood and which has undoubtedly had a tremendous automobile, in
Roosevelt rejected the invitation
an
amazing. way.
v
;. >
which
he
was
influence upon the lives of the3>
Finally, the whole chaotic situ¬ but finally agreed to talk with
This
writer
recalls
a
movie travelling: at about 80 miles an
American people, and upon the
hour, was in> a wreck and cata¬ ation in the country had been Hoover on his way from Albany
lives of p'eople over the whole which accompanied the fantastic
cleaned up by this vigorous and to Warm Springs, Ga., where he
advent of the New Deal.
If was pulted the President out on~vtop
world..V '■■J-V
dramatic man of action, with the was to rest prior to taking over
;
exception- of two things.
First: the Presidency.
This writer rode down on the
Gangsterism.
He moved against
train with the Roosevelt party to
this
by sending armored tanks
into the gangster strongholdsf .lt Warm Springs after the confer¬
with Hoover
and he was
left one thing yet to be cleaned ence
up:
International misunderstand¬ shocked at the lightheartedness of
ing. So he called for a meeting of the Roosevelt entourage. One ex¬
the world leaders on a battleship pression that they kept repeating
"It's his (Hoover's) baby."
at sea.
He proposed international was:
disarmament.
'Predominant, in
their
state¬
Immediately
the
visiting statesmen began protest¬ ments that night was this one:
of
polio
■
,
Well Staffed
He said, "Very well, give me
mike," and stepping up to the
mike, said, "Hello world."
This
"Those
ing.
Schools
the
much
too
was
statesmen.
that
do
clamored,
us," and
all
They
can't
"You
to
Interna¬
The result:
succumbed.
and understanding.
the Secretary mar¬
the young officer who led
tanks against gangsterism.
tional
peace
Incidentally,
ried
the
Mr.
have
Efficient Hospital Service
Roosevelt
Mr.
and
Hearst
gone their sep¬
the disadvantage of
long since
arate ways to
the former.
The latter has carried
out
dramatic
every
international
an
yet
something
That
the
is
meeting
international
The
sea.
of
episode
the extent of hav¬
that movie to
ing
attained.
this
which
to
at
is
peace
be
to
end
amazing man is moving today. It
is a tremendous undertaking by a
Engineerin& Projects
constantly under
Cons tr uc tion
Woodrow
of
thinks he
dead
L.
momentarily, the
the
had
facts
that
are
Doherty,
for
is now
It is not
his motives.
he
was
utilities
a
utilities
the
and
into
look
to
idea
balls,
his grave.
in
and
me
The
who
and
Henry
magnate,
in
were
for
a
available
New Deal.
The
fact is also that the New Dealers,
all Listeners
at the time he came forward with
\ily Radio Proam
in Central
America
by
beating
his
the
plan, assumed that it was to
get him better treatment. He put
up, I have been told rather au¬
thoritatively today, at least $100,The
000.
he
radio,
night of the first
"launch"
to
was
it
on
ball
the
nationwide radio hookup.
had accepted the
a
President
The
now
O"
\
So
we
as
this
statesmen
European
met their master."
■
•'
-
the future,
the
conviction
head into
has
writer
Roosevelt is convinced
that he will succeed in enforcing
Mr.
that
world
a
failed;
where Wilson
is convinced no
Lloyd-George can
peace,
he
that
Clemenceau
or
outsmart him. And he has in
mind
enforcing this will of his through
economic control of the world.
As
will
it
where
to
all
come
nobody can definitely say. I
do know that if he and the New
out
there will
tariff bar¬
Dealers have their way
be
such
no
thing
as
riers; international currency will
be a greatly changed thing.
Evi¬
dence of what is ahead is in the
agreement reached at Rio.
York
"Times,"
Mr. Roosevelt.
with
guardedly
very
the
down
interview
came
had/an
and
recently
of
McCormick
Hare
Anne
New
She wrote a
written
article,
sensationally revealing if
but it is
birthday-polio
for
a
beat the game that
first
who
the
world
the
can
turn aside
man
enforce
Wilson.
licked
To
ambition
to
Wilson
upon
peace
,*'
the
breathed
who
man
•
visiting
the
for
have
background and
also has been close to things here.
the
knows
one
of 60, Mr. Roosevelt
thought of relinquishing
At the age
has
no
the
Presidency.
is
He
he will win the war
assuming
and then he
thinking of winning the peace.
is what is still holding his
vision to the future instead of the
is
That
past.
The
that
Miss
most revealing
McCormick,
a
thing
most
journalist,
wrote,
was
Roosevelt, being some 10
capable
that
younger
than
considered it was up to
years
to
the war and
run
relative
peace.
Churchill,
Churchill
he, with his
youth, would run the
Maybe the two men have
such understanding.
some
wholeheartedly and was to
But
Clemenceau
was
much
Doherty on the program.
older than Wilson when the two
On that night Doherty waited in
met at Paris.
the
Washington studio of
the
A couple of days after Pearl
Columbia Broadcasting system for
Harbor Mr. Roosevelt was slightly
plan
follow
hour—for
one
White
House
his
make
it.
He
the
to
speech.
He
got
never
call
come
from
there
never
the
and
got
reaction
any
The full extent of that dis¬
him. But
pale.
aster had dawned upon
has
he
a
In
having
the Central American
Guatemala,
Honduras,
Republics of
El
Salvador,
Nicaragua, Costa Rica and Panama
well
as
B.W.I., progress is
are
as
the Islands of Cuba and Jamaica,
on
the march. Schools
being built and administered in an
ever
efficient manner, hospitals and dis¬
pensaries
are
strung throughout these
Republics and Islands. Railways, high¬
ways,
bridges and other engineering
achievements
are
today
a
normal part
of Caribbean development.
Constantly
improved living conditions, up-to-theminute radio programs, regular and
efficient transportation facilities, — all
America. '
Proud to play its part in today's firm
basis of mutual respect and understand¬
ing is the Great White Fleet which for
more than 41 years has faithfully and
regularly served its neighbors to the
are
a
South.
part of the life in Latin
wide
inaugurated
what
has
be
a
yearly nation¬
The
event.
New
to
put
up
"O. K., if he wants
his
for
money
this
but he gets no favors from
course, before his death
Doherty had been eased out of
cause,
us."
Of
celebration.
the
properties
than
while
his
have fared better
may
Standard
And
Gas
or
Associated
COMPANY
GENERAL OFFICES: ONE FEDERAL STREET, BOSTON,
MASS.,
what
Probably he has
they
all
united
in
The widely
town
is
hold
onto
Steel magnates and publishers
are
looking for diplomatic jobs at
their
wives
can
gratify
pressing against her.
accepted story around
she is arranging to
the administration of
that
the
loses
and Hours Act, if she
labor
custodianship.
of business
her to
remain
where she is.
But the
labor leaders are ganging up on
men
the
viewpoint
it would be better for
her.
They've got John Lewis in an
much
amount
to.
fighting
rearguard action against losing
out as Secretary of Labor.
The
labor",
factions
are
apparently
the
Neighbor Policy, extended by the
wondered
ridiculous extreme,
a
From
now
a
Miss Perkins seems to be
properties.
Ordinarily, a man of Mr. Roose¬
velt's age is tiring.
He is begin¬
has
complishments.
FRUIT
'O
As sort of
become a
fleet
ning to look at the past, his ac¬
UNITED
in the world today.
the Wages
This
his
There is perhaps,
Dealers
cackled about it at the time. Their
attitude was
more
man
regained
not
confident, sure-of-himself
Gas, say, they have taken their
trouncing along with other utility
symbol of the sincere effort to further
Good
to
come
since
long
confidence.
from the White House at all about
awful hole. He realizes it as
as
anyone
else and the concensus
opinion in Washington is that
their social ambitions; the most of he won't try to take ■ his mine
workers out of the CIO—at this
us are inclined to rest if we have
time.
After all, when you come
the competence to do so.
Mr. Roosevelt has no intention to think of labor leaders, the out¬
which
of letting down.
■more
game *
standing,
most
powerful
Whereas, "ldader is 'Mr. RoOsevelti;
He has still one
to* be^t.
of
labor
Volume 155
Number 4039
THE COMMERCIAL
/
•'
—
& FINANCIAL CHRONICLE
Construction
Petroleum And lis Products
:
price ceiling for petroleum and refined products, based
generally effective at present as a result of Of¬
Price Administration requests
and voluntary agreements
quotations
fice
of
of
a
heavy-duty
products pipeline from the South¬
west
A formal
upon
the
to
the
need
Atlantic
for
much
would
of
the
end
tanker
tonnage currently involved in the
coast-wise
trade
and
make
these
Oil
Co.
low
closely
along
the
the
the
lines
general
ad¬
letter
petroleum industry sent
Mr. Henderson on-Jan.
by
to
out
17,
last, establishing maximum prices
for refined petroleum products at
levels prevailing Nov. 7, last, and
for crude oil at prices prevailing
Oct. 1, 1940. With the exception
of carbon blacks, which are gov¬
erned by existing agreements, the
effect of the
new
to formalize
existing price agree¬
ments
between
schedule will be
the
industry
which
East
have
Coast
the
mid- month
since
coupled
with
further
diversion
military
off
made
been
increased
transport
of
fears
of
tankers
to'
needs,
has
caused talk in the industry of a
possible revival of the plans to
construct
a
petroleum products
pipeline from Texas to the East
the
to
needed
tained
United
for
Nations.
the line
The
could
in
tanker
in
the
With
line
feel.-As
said,
one
"You don't
about
a
of. the
have
submarine
Navy
will
Higher
the
defense
of
unit
efforts.
the
AEF
average
a
400
barrels set by the Bureau of
Mines,
have
plenty
of
production
the
crude oil
United
crude
oil
States
for
17
In addition to establishing
^
were
up
1,160,000 barrels
foreign crude stocks gaining
293,000 barrels.
'
'
With
the
industry
American
already
of
States
Columbia,
and
the
is
production for
of
to
be
the
fuel
called
upon
States
-
»
week
ended
max*
situ¬
and
District
recently an
a gallon in
permitted be¬
increase of 3-10 cents
of
cause
was
higher carrying charges
by producers to avert a
incurred
gasoline shortage due to diversion
of
tankers
use.
to
and
war
lend-lease
However, the schedule does
not
necessarily constitute a final
determination of m'aximum prices
for crude and refinedproducts
-since the OPA currently is en¬
gaged in extensive investigations
■into
crude
oil
production,
fining and distribution,
re¬
Slightly lower demand
during February as
for
'crude oil
trasted
1942
with
initial
the
shown
was
in
con¬
month
the
of
market
"
demand
1
estimate
of: the
United
Radio...all oat for
States Bureau of Mines this week
Victory
vwhich placed indicated demand at
;4,101,800
barrels
daily, * against
4,133,400 barrels in January. Act¬
ing on the total Petroleum Co¬
ordinator
fied
the
Harold
L.
following
Ickes
Research and invention have
cation—is
State-
per
Texas
per
632 300
______
Oklahoma
day
1,596,000
::
,
California
barrels
.-L-l
.
395.000
Illinois
-,.!f
383,400
Louisiana
335.000
329.300
251,700
259,900
119 300
78.600
*■
i__
Arkansas
74,500
are
strengthening—and will fur¬
fortify-rthe bulwarks of our communi¬
cations system. At Princeton, New Jersey,
Pennsylvania
the
new
48,000
20.400
17,200
17,300
14,700
15.000
York
New
Kentucky
12,500
10.000
9.000
can
the-minute. It is
and
6.500
long
waves,
a
life-line of communica¬
democracy and is
short
freedoms
National
States the communication
5.900
bol of
★
operating
on
center
Uh C;'.
reaching 55,000,000 radio sets in homes
have made the United
International circuits,
com¬
effort.
the very sym¬
of the essential
for which America fights. The
Broadcasting Company—a service
of RCA—and
of the
as
one
its associated
stations,
are
9.000
Colorado
*-
★
12,000
Virginia
★
and automobiles. It stands
12.400
West
Ohio
★
and is
war
broadcasting is keeping the Ameri¬
people informed accurately and up-to-
under construction.
21.500
Indiana
★
.
all-out
tion
47,400
Montana
an
Radio
RCA Laboratories—the foremost
47,400
47.000
_____
than 1500 American
center of radio research in the world—are
60,400
M'chigan
Corporation of America
more
pletely engaged in
73,700
57,4C0
;_
Mississippi
equipped
vessels with radio apparatus
engi¬
ther
121,200
78,000
Mexico
Wyoming
has
on
electronics
1,573,500
646.200
Kansas
New
vital
neering developments in both radio and
day
415,700
371,800
a
and in the air. RCA research and
sea
Jan., *42
barrels
The Radiomarine
GOMMUNICATION—rapid communi¬
necessity,
land, at
to
the various producing States:
Feb., '42
placed radio in the first line of battle
certi¬
schedules
Nebraska
5,200
Total
world.
5,600
4,101,800
—_
4,138,400
statement late
in
1941
estimated
★
an¬
during
February
barrels
for
was
crude
off
declared
mission
meeting
proration
Jan.
that
26
in
oil
36,600
Austin
it had- been
be trained for wartime posts.
and
in the United States, has
and
for
York and
★
on
on
At
★
★
war came
★
★
and America took its
place
widespread fighting front, radio was
the Ready
with radio men and radio
the
.
.
.
facilities prepared to answer the call to duty
"in the most tremendous
undertaking of our
and civilian defense.
national
y
American life and property at sea are
than 1,200
studying in its New
Chicago classrooms.
★
When
delivery dates of radio equipment needed
war
more
RCA Insti¬
students enrolled and
unsurpassed in range and effi¬
ciency. In the RCA Manufacturing Com¬
pany's plants, workers have pledged them¬
selves to "beat the promise," in production
Railroad Com¬
at its monthly
Texas
★
and technicians must
tutes, the pioneer radio school of its kind
news
radio voice
as
the
•■; ★
New radio operators
★
equipment is essential
timely information, for mili¬
tary and naval communications, for dis¬
semination of news among foreign coun¬
tries. The "arsenal of democracy" has a
Following Mr. Ickes' announce-,
ment,
★
★
Production of radio
compared with the total
January.
for
broadcasting.
for
the
demand
time
Inc., conducts direct radiotelegraph service
with 49 countries.
certification plan,
which was initiated in January,
the recommended production
rates for February reflect minor
adjustments between States to ef¬
fect better balanced participation
by each in producing the quan¬
tity of crude oil necessary to
meet national requirements.
The
nouncing
fully organized for the coordination of war¬
Today,. R.C.A. Communications,
In accordance with Coordinator
Ickes'
history."
being
Safeguarded by ship-and-shore stations.
author¬
ized to add 22,500
oil
to
its
daily
barrels of crude
flow, lifting the
PRESIDENT
total to
1,593,000 barrels, but must
cut standard, or non-defense gasr
oline, by 12%. Commissioner Sad¬
ler stated that the requirements
for aviation
lubricants
Radio
RADIO CITY, NEW YORK
it
necessary
The Services
to
National
curtail crude oil available for the
refining
of standard,
or
non-de¬
fense, gasoline.
The
Corporation of America
gasoline, fuel oil and
made
heavy,.'foil
taken, ijn, ,tfce
,;
to
liberate
during
the the Allies from their dependence
January 24 to 4,321,- upon the East Indies for rubber
Coast which were abandoned in
"The
90,000-barrel
petroleum 454 barrels, up 277,214 barrels supplies, according to Robert H.
1941 when it was impossible to products " pipeline
from
Baton from the previous week and-sub¬ Colley, President of the
Atlantic
get priority on sufficient steel to- Rouge, La., to Greensboro, N. C.. stantially
above
the
January Refining Co., in Philadelphia this
handle the project.
owned
'
jointly by the Standard market demand estimate of 4,138,- •V; (Continued on
Page 423)
5
pipeline.**
where
gasoline prices
petroleum
furnishing
the
supplies needed
for
the
military forces of the
United Nations, the
industry soon
bulk
in
prices for petroleum and
petroleum products generally, the
price schedule will make provi¬
Southern
Jan.
crude
imum
sions to include the special
in
fifteen
Eastern
United
ended
Mines reported.
Holdings of U. S.
and
ation
the
climbed
•OPA.
.
in
week
1,903,000 barrels * to
246,267,000 barrels, the Bureau of
work
totals
held
the
with
virtually all major oil producing
States in the country lifted daily
worry
sinking
first
for the nation's tankers to handle.
oilmen
to
nation's
the
at an undisclosed port
North Ireland this week, the
in
ob¬
of
and
covers
landing
by
field,; proponents
it
areas
formerly em¬
ployed in serving this section for
other waters where they will aid
curtailing the present
giant expansion program in the
,
the
free several tankers
steel
be
Jersey, Shell Oil
according to the "Oil &
tucky, is expected to start oper-. Gas Journal" on Jan. 27. Texas as
ating around Feb., 1.
The new usual showed the sharpest gain.
pipeline
will
supply
domestic Stocks of domestic and foreign
.
planned schedule will fol¬
of New
Co* and Standard Oil Co. of Ken¬
needs
vessels
available for the Navy.
industry, will be released shortly by the OPA,
The line also would cut the sea
Leon Henderson,,
Administrator, announced in Washington this week.
petroleum
products
A few days prior, the OPA had announced approval of a small in*, voyage vof
from the Gulf Coast to Britain
crease
in gasolinq prices, on the<^
substantial: amount,
ranks
of
coast-wise
tankers
in' by fa
East Coast.
thus
'!■ '
further releasing tanker
the
enemy ' submarine
attacks
tonnage
The
with members of the
vanced- in
421
i
.•iViTv;
of RCA:
RCA Manufacturing Co., Inc.
Broadcasting Company, Inc.
•
•
RCA Laboratories
•
R.C.A. Communications, Inc.
ltadiomarine Corporation of America
•
RCA Institutes, Inc.
•e
before the turn
'Foreign Front
Far
but
soon
don he
Lon¬
rejoined the debate.
There
of
after his return to
are
every
situation
occasions in the life
Government when the
must be clarified, said
Churchill, by way of explain¬
ing his demand for a confidence
vote.
The hostility
evinced in
some sections of the British press
Mr.
East,-Mr.
comes
threat to Singapore wasf
by the Prime
endeavored
to
the
reassure
Australia
He announced
Imperial War Cabinet is
be formed, with representatives
the Dominions in attendance.
that
of
over
answered
Minister, who also
and New Zealand.
to
in the
Churchill said. \
Much of the criticism
(Continued from Page 419)
«
FINANCIAL CHRONICLE
THE COMMERCIAL &
422
an
Cooperation between Britain and
the United States with respect to
the Far East already is far ad¬
necessary to dispel any
at home or abroad, that vanced, he revealed, with Ameri¬
can naval forces assuring the Pa¬
regime had the full sup¬
cific Ocean approach to the Anzac
■t
the outcome of the Lib-/
diet
V yan
General/Erwin
German
the
Churchill com-
Rommel, Mr.
desert
than
For
those
the
.
British losses in
mented that
the
:i
Paying tribute to /
battle.
fighting were
of the Axis.
of
valor
the
less
/
he
indicated
that
praise, and
British policy
-Thursday, January 29, 1941
-
last Friday. The
extended their opera¬
//sharply augmented in the re-.A' tions southward on Celebes Island,
;i/cent fighting.
Effective at-4/ and attacked Madang, in New
; tacks
were
made upon the
Guinea, and several points in the
Solomon and Bougainville Islands.
Japanese supply routes, and
the
United
-
fell to the enemy
strength the forces, of
y naval
>
/
were:,
Japanese
ships
Nations 4
The
*
number
the
;
-
of
enemy
soldiers
/
perished as their ships sank.
respecting Russia was of his own
Guinea.
-
It remains true, however, that
the
enemy
everywhere
re¬
/
Before the turn eajpne in
Russia in December, however, the
making.
the 4/
of
Torres
~
Strait, between Australia and New
believed to have
are
directed
were
moves
the
supply line
United' Nations
through
Many thousands of Japanese
;
latter
toward
reported sunk increased daily..
Russians
Mr. Churchill had only
'
r'f:./;•;
;, 4-..■
«
'
■.
..
Russian Winter
//
Bitter cold was. reported /this
tained the initiative and that
possibility of a German advance
week on the long front in Russia,
:
the operations of the United
through the Caucasus and of in¬
where the Red Army continues to
calculable
effects
uponTurkey // Nations were entirely defen- /
::;/; ./
drive the Germans and their as¬
port of Parliament, he commented.
,'r - sive. '
and the Near East had to be faced,
The German Nazi, Rudolf Hess, area, while the Indian Ocean ap¬
sociates backward from the ad¬
All. dispatches indicated that the
and it was largely on the basis of
flew to England almost a year ago proach remains a British respon¬
vanced posts gained by the enemy
Tokio forces were pouring in a
/'-;■ /"
Australian
volunteers such problems that the defense of
because of his conviction that a sibility.
up to Dee. 8, .1941/ Aerial forces
8S
the Nile Valley was made para¬ yast stream toward the tremen¬
are playing little part in the cur- 44/^
governmental overturn could be serving elsewhere are at liberty
mount, Mr. Churchill indicated. dous arc of their objective, formed
achieved easily through "access to to return to their homeland for
rent phase of the struggle in Bus- /
,
Tribute to the Chinese was paid by the Malay Peninsula, the East
certain circles," said the Prime defense of Australia, Mr. Churchill
and the German mechan- ,
, •"
Indian
Islands and the Philip¬ sia,
by the Prime Minister, who made
But he also expressed the
Minister, who added that a dozen said.
it clear that China was foremost pines. Japanese convoys were at/; ized; iuni^/appeai^/tQ /be /useless /'////
-foreign countries haye inquired opinion that the Japanese are
in/ the/sub-zero cold.;// The/amr • /
v, "
in the strategical discussions with tacked" increasingly,, > both /from
anxiously of late regarding the more /likely to try to establish
regiments of,/ the V, 1 < ,*
the sea and the air: Havoc was pie/: cavalry
/;/
themselves in areas where fight¬ President Roosevelt.■ v: 4/;
Red Army remain mobile,, howposition of the British Cabinet.
During
his. three.../weeks./ in played with enemy shipping,/in
ing now-, is in - progfess, than to
and are preventing, that ;
.
the- Strait; of Macassar, between ^ ever,
Turniiig to the conduct of—
Washington, a number o'Llmpor-:
attempt a serious invasion of Austhe line which;
''
Borneo and Celebes/ the Ameri-i .stabilization - of
the war, Mr. Churchill gave
tant and practical decisions- were
tralia.
*
'
' /
the Germans fondly hoped could
can Asiatic Fleet coming at long;
a candid account of the situa¬
reached, said Mr, Churchill, .but he
Full personal responsibility
be achieved during^ this winter.,
last into real action dn !this front.
tion in all theatres.
He con¬
added that those, affecting future
was accepted by Mr. Church¬
The units under the. /command: of 4/// Generals January and Feb- ;
ceded that Japan may have
operations cannot be disclosed,
ill for decisions which pre¬
ruary are the great Allies of *
V''
Admiral Thomas ■ CJ Hart were
the
upper; hand in the Far
The United Nations arrangements,
ceded the action in Northern
the Russians, in any defense ;
Pacific region during
1942,
active/ oyer the last
and the preparations for immense especially
! Africa/ and which limited the
week-end. Dutch and
American 4 maneuvers, and in this his-/!'44/'//•:
hut
assured the House
that
increases of war strengths/, were
defense arrangements of the
vtoric year of 1942 they are >
aircraft
bombed
the ■ Japanese
the
position will change in 4
mentioned by the Prime Minister.
Malay States and Singapore. ;•
fully • bearing' out their, repu- /
1943.
He 1 linked the Dutch
and
submarines - took,
His own relations With Mr. Roose¬ convoys,
Priority in war materials was
tations.
The bitterest /cold •
East
Indies
with
Australia
their toll,
>
I j " -f//
velt are not only those of, corh.accorded the Nile Valley de¬
//known in Europe in several >
and India! as the basic area
radeship, but of friendship, Mr. %i An American submarine "probfense, he conceded. The lim¬
from
Churchill said. He closed with the 'ably" sank a Japanese aircraft //decades is reported from a *m;
whijch action against *
iting
factor, ' however/
has
/score
of points./ Better able
carrier in Macassar! Strait, ' the
Japan eVejitually will be in¬
assurance of "a light gleaming be/
4 been transport, rathery than
1- by far to cope with such con?
creased,; qnd
thus
made it
hind the clouds and broadening Navy Department announced on;
;' troops and equipment, and in
ditions.4 than
their
German /
clear that there is no expecta¬
Monday.. A Japanese 1 battleship
upon our path." ■ •4./://////V'//
this connection Mr. Churchill
was
tion of losing the Malay bar¬
similarly /believed to have / enemies, the Soviet forces are /
dwelt upon the plans of the
/ taking
full advantage of the ,
rier
to
the
Japanese.
But
/
Southwestern Pacific ! rUU been destroyed by forces of the
United
States
for: vast in1: plight of the Reichswehr. /
/
"severe ill usage" at Japanese
./United Nations,; and;, transports
creases of shipping and other
Military reports of the battle
hands is likely to be expe¬
were reported sunk at a rate rang¬ //Although foreign observers are
in the vast area of the
South¬
supplies. He refused to pre-;
rienced by the United Nations
ing from one to five each day. debarred from the Russian front
western Pacific were more com¬
Tokio admitted,. Tuesday, that no; by both sides, it is fairly evident
forting in some ways, this week,
less, than
four transports were that the Moscow claims/of tre¬
but distressing in others." Attacks
sunk in a single battle, last Fri¬ mendous
successes
against the,
by forces of the United'/Nations
day, for the port of Balik Papan, Germans are sustantially correct. f///;
on
Japanese
naval
units/; and in
Borneo, which the Dutch evac¬ After the fall of Mozhaisk to the
Bonds in a War
transports
gained in1 intensity. uated
only after destroying valu¬ Red Army, last week, the Reichs- 4 .
Many of the Japanese ships were
able/oil installations.| j American wehr retreated rapidly, and left :•
sunk, but on the Malay Peninsula
and/British fliers bombed Jap¬ behind immense military stores
COPY OF LEAFLET RECENTLY PREPARED BY US
the enemy continued to move to¬
anese forces and airfields in Ma¬ and
equipment, In the snows be!/
ward Singapore, and fresh gains
Orsl THIS SUBJECT WILL BE SENT UPON REQUEST,
laya and Thailand.
The struggle tween Moscow and Leningrad £ 4
were made by Tokio forces on the
)
thus
lost
some
of the -unequal
/ ' ■ir'y v
r. *' V
,'x /
major /Russian
move; was
re¬
chain of Netherlands and Austra¬
aspect of the early weeks of the ported, with the Germans again
lian-mandated island. An admis¬
Japanese-attack. There1 is no deny-' falling back. Even in the Ukraine
V
sion by Prime Minister; Churchill,
B. J. VAN INGEN
ing, however, that the enemy con-! the Red Army made progress, but '
Tuesday/ that the tide may not tinued to make progress in every
the Germans held their
ground
i, ;
\/: Municipal BONDS:/;?://1::/;'
turn until 1943 added to the ap¬
important, sphere.
■
on the Crimean Peninsula.
'
j
' ' '
prehensions regarding the gigantic
57 WILLIAM STREET
///:'///C; NEW YORK
4 The battle for the Malay
;
/The real/question in Russia Js,
conflict in the Far East.
- made
it
doubts,
his
own
,
s
:
.
-
..
»
-
-
.
*
"Revenue
Economy"
,
1
:
&
CO|JNC|;|:
\
,
,
/
Both
in f
aerial
and
.
in
/
Peninsula carried the Japa- 14
4; nese ever nearer to the
of
gigan- ;:
14 tie British base at Singapore.
4
Still
Evidence
the
of
Tokio
the
sea,
ish
not
The
Batu
Pahat
from
in
was
hands
Tuesday,
by
the
losses
the
International Shoe Co.
vanee.
forces
with
the
Oriental
the
against
to
ad-
1
fully
now
enemy,
began
troops
Burma,
masses
and
to
some
gains were admitted by the Brit¬
ish in the direction of Moulmein.;
This
move may
be directed against
the Burma Road supply route
into
but' possibly has also the
objective
of separating
Burma
from the British Commonwealth.
China,
Fighting by the Chinese was ex¬
scope,
some
forces
against the Thai-Burma
border, while others continued to
battle
the
invaders
in
China,
in
tended
moving
proper.
-
/
'
the 4,000 miles of the
Malay Archipelago the Japanese
Along
attacked here and
view
obvious
and
points
there, with an
securing
to
shutting
and air routes of
key
off the sea
supply from the
Also
States and England.
United
the apparent aims of the
enemy is that of gaining control
of oil fields
and ports.
Balik
among
Papan, on Borneo, was
the
Dutch
to
a
contrasts steadily have
subjected
thorough
"scorched earth" policy, before
it
.
in Libya be¬
Empire and Axis
battle
the
marked
British
and,
another
of
the
for which the area is
late last week.
General of the Axis forces,
forces,
changes
occurred
famous
The
Erwin Rommel,
leader
the
as
suddenly emerged
offensive bat-
of
talions, and turned the tables on
the British,
whose supply lines
were much
extended.
Nearer to
his
supply
base,
Rommel appar¬
ently had certain advantages, and
he made good use of the element
of
surprise.
/
~
reporting
a week ago that Rommel was en¬
deavoring to extricate his "trap¬
ped" units, the Germans and their
While Cairo still was
Italian associates
units
was
already were on
against the advance
the Empire.
Agedabia
march
the
of
Fri¬
initial move in the
phase of the African battle.
retaken by the Axis last
day,
as
latest
the
Fresh advances were made
Axis
the
by the
early this week, with
British hammering away at
their
-
j by
Reverse
Libyan
Sharp
fanatical
-
aligned
move
the
tween
Thai
With
of
but
continued
Japanese
across
the Russians plains.
Johore
inflicted upon
were
enemy,
Nazis
about to
frosty; legions
his
march
Strait and Singapore. Enorm¬
ous
the
some
still is in reserve and is
separate
front
aggressors
to
only
and
two score miles now!
•
in
Japanese
Mersing
of
be cracking. Typhus is said
reports to be raging be¬
'
hind and perhaps within the Ger¬
man lines. And General February
may
vital
units.
Empire
line
rout*
is
point
organization
tary
sition untenable for the Brit¬
BOSTON
German
their
fav¬
clear,/but the rate of the move¬
orite methods of infiltration :/•
ment in the last few days lends
through the jungle and by
color to the belief that the mili¬
way
NEW YORK
this
on
sing
u
v
forces made position after po¬
ST. LOUIS
the
whether
course,
retreat can be turned into a
units
supply lines.
In this swift
the
Germans
pene¬
movement
trated far behind the
ever,
and
further
British, how¬
developments
//
„
^
THE COMMERCIAL &
Number 4039
Volume 155
r
are awaited
with interest, if not
>r wdh apprehension.^I* *"•
<; ■
advantage of the OPA permission
Petroleum And Its
during the week.
schedule, the
•Heavy attacks by British naval
aerial
and
week
on
.iV" route
units
made
were
this
the Mediterranean supply
A number of
week.
Tne
est in
peiroieum is to
production of syn¬
par;
ships went to the bottom, play in- the
batterings, but it was thetic rubber is a perfect illustra¬
admitted in, London, Tuesday, that tion of the almost universal roie
the
British
battleship
Barham, petroleum plays in the nation's
31,000 tons, had been sunk in the economy, Mr. Colley said.
:
v,
i.
long ago as Nov.
British Admiralty
"Because
as
1941.-;: The
25,
explained
elaborately; that- the
sinking was kept "secret" for two
-in
months
to
order
;
cheat
the
knowledge
entail.
But the Barham
-
clared
Berlin
a
.
this •> week,
teries
de¬
delegations agreed
to "recommend" a complete dip¬
lomatic
break
with
Germany,
Italy and Japan, This falls short
of the Washington
objective of
immediate exchanges of passports
and war declarations, but it does
of
all
the
on
the
of
cause
Latin-American
record
v methods
of; delivery
-j .15.-.eastern states.
into
with
the
by
Axis,
tries
were
propriety
all
Latin-
convinced
so
such
of
number of them
Conference
Rio
such countries
coun¬
of
the
that
action
acted
ended.
course
suggestions made
in
Conference
of the Rio
not neces¬
sarily conclusive. There were in¬
dications
that
Washington fav¬
sweeping,
were
ored
of
but
unified
a
the
and
that
stated
counts
for
currency
Americas,
all
some
ac¬
gold hold¬
ings might be- utilized to make
such a currency effective. " The
palaver boiled down, however, to
a
question whether a conference
leading to such a currency, the
our
barriers and
abolition of customs
other
developments,
held.
There
path
to
of this sort could
'-1:
v'ji
v'.T \
V\
v
————^
•'
K'
•'
■ ■■—•—
-1
ABA Graduate School
y
be
long
aims
be realized.
fc.
———
■.
should
is* plainly, a
be traveled v before
annual
organization meet¬
ing of the faculty of Tne> grad¬
Sc.iool of Banking of the
Bankers
American
alumni
of
of
The
by
on
Dr.
Graduate
for
in
Club
Graduate
faculty meeting
a
the
School
New
York
April 11, it is announced
Harold Stonier, Director
The
of
of
of
will be held at the
Banking
Manhattan
City
Association,
reunion
annual
the
School.
is in
Tne
the nature
conference for study of plans
the
resident
which
school
session
will
of
the
held
be
at
were
of
conferences
of the
series
on
oil
crude
no
alumni will
of
afternoon
various
aspects of
V
reunion
this year will mark the fifth anni¬
versary
will
be
of the class of
1937
and
in
charge of David C.
Bary, Vice-President of the L'ncoln-Alliance
Bank
&
Trust
Illinois
Illinois
above
Co.,
at
Rutgers Uni¬
Summer will mark
beginning of the eighth
year
of The Graduate School of Bank¬
ing.
above
The class of 1942 will grad¬
approximately
225
officers.
Socoft^-Vac.
7 $ 08i
Texas
Shell. Eastern
___________
.
$1.35
V.-""
Savannah,
Bunker
,V
Gulf
1.3C
Philadelphia, Bunker
ORf
^
Coast
Halifax
2.15
C_
.09
.081
^
Terminal
*
1.35
may
1.7(
being
Prosser
Street,
.85
__
______________________
Circular
Roy
New
&
distributed
Co.,
York
over
;•
Hills,
City.
Copies
.<'■'}
request.
0.95
1.12
and
37.9
1.29
——
County, Texas..
Lance Creek, Wyo.__
Signal Hill; 30.9 and oyer^;
-
East
V.23"
,
Coast
motorists1 paid
gallon
more
cents
a
oline
this
week
0.3
for their gasr.
the
as
Office
Of
Price Administration approved an
advance of this amount in mo+or
fuel
prices
East
on
in
Jan.
States,1 4h' the
15
22,
explaining that
the
increase
was v permitted - in
order that the companies .operat¬
ing in this;area might be" com¬
pensated for their increased oper¬
.
ating costs due to expanding use
of the
more- expensive
railroad
tank car transportation instead of
the normal tanker movements..
n
The
increase v
asked' for
when
summer
last
companies
the
,
originally
was
by the
:
tanker
"short¬
their
of
use
railroad
bank
Laying the new 456-mile Southeastern Pipe Line, which was formally opened December 19,1941. Linelaying tractor lifts 40-foot, three-quarter-ton section of steel pipe into position preparatory to ivclding.
tank
With the enemy submarines
cars.
lurking along the Atlantic Coast¬
already having sunk several
fe-.---.*:
line
coast-wise
troleum
week
tankers,
asked
again
road
Deputy-.Pe^
Coordinator
last
the
-
companies v to
their use of rail¬
increase
tank
Davies
both
cars,
the East
on
and West Coasts.
This
ther
operating
increase
in
means
furr
costs
with
probably
OPA -' approved
markups;-in wholesale and retail
quotations
to
offset
•
costs.
the
rising
.•7"---
With
movements
and No. 2 fuel oil
of
kerosene
by railroad tank
car
and
approval
probably
lowed
the
still-
of
hope
some
same
that
for
advance,
was
However,
decision
no
on
bunker
oil
fuel
oil
prices
with
.7\-' Before the line was constructed, the
people, the industries and the military
p hases of the Southeast we're mainly de¬
pendent for gasoline upon ocean-going
tankers, plying between the Gulf Coast
and
a
No.
6
grade
the East Coast,
on
latter
being
placed
ceiling at the prices rul¬
middle-Atlantic ports. The
the week-long tanker
new
line-cuts
>-
this
the
under
and
forward
•-
al¬
Administrator, confining his rul¬
ings to gasoline and Grade C
fuel
plans for victory took a
step on December 19,
rU941, when the strategic new Southeastern Pipe Line was
officially opened.
-■'.This new 456-mile artery—the first
in the Southeast—provides a continu¬
ous-supply of gasoline to important
military-and industrial areas in our
y Southeastern states.
in
the motor fuel field, In
prices of these two refined prod*
The nation^ s
-
ygreat
v
haul
around Florida to 54 hours, reduces the
dangers of wartime attack, releases
much-needed tankers for important
service elsewhere.,
The Pare Oil
Company is proud
to
substantial owner in this important
V contribution to the national victorv.
be
a
FACTS ABOUT
THE
NEW
SOUTHEASTERN PIPE LINE
Capacity; 30,000 barrels —1,260,000 gallons of
gasoline or lighter petroleum products daily.
,
Construction: 31,000 tons of steel pipe, laid
in
a ditch
2,408,000 feet long and buried 3 feet
underground.
ing last Jan. 9 with a maximum
of $1,35 for Atlantic Coast ports
85
cents
the
Gulf
Coast
/.
Standard
and
for
Oil
of
New
Jersey
its
marketing affiliates took
the lead in
posting higher, prices
for
motor
on
fuel
in
the
Jan. 23 with
a
East
Coast
grand total
of 15 companies winning
approval
of higher
prices, all of whom took
Be
sure
J.
be had from the firm upon
1.25
?
;
_______
by
52 -William
1.25
Pecos
area
uate
or
C
;
.
——
Kettleman
and
the
Refinery
1.37
-
ports.
next
B.
unker
Smackover, Heavy
0.83
Rodessa, Ark., 40 and above f1.20
East Texas, Texas, 40 and
>
resident
versity
O.
1.22
—
Basin
Mid-Contin't, Okla., 40 and
Rochester, N. Y., as chairman of
the
committee
in
charge.
The
session
F.
(Harbor)
$2.75
1.31
_____
pointwas
announced
by
the
OPA this week, Leon Henderson.
The
Oil,
Y.
Diesel
taking place
now
(All gravities where A. P. I.;
degrees are not shown) iVy?
savings
lowed by a dinner in the evening
at which the faculty members will
guests.
4.25-4.625
_.04%-.04%
Readjustment
in industry from a peace to a war
basis bearing on eight long estab¬
lished comoanies is outlined in a
At Wells
Barrel
t
ucts.
banking, investments,
banking, and trusts, fol¬
invited
,04
;
Orleans
Fuel
.052f
'
_
Texas
Tulsa
N.
Readjustment In Industry
.052E
______
price
commercial
be
Tan»
Car,
$.053
Prices of Typical Crude per
OPA
a
Octane),
Tank
part in
a
anticipated
year.
The reunion
65
White,
Refinery
countless
of
wick,
;
(Above
York—
.053
.03^8
the
turns
from the Southwest- to the
East Coast also rising, oilmen had
University, New Bruns¬
N. J., from June 15-27 of
consist
Gasoline
B,
O.
Philadelphia
New
$.04
Tulsa
air¬
Rutgers
this
y.
Water
F.
(Bayonne)___
Baltimore
North
Terminal
changes posted during the week.
crease
uate
and
in
r
.
Car Lots, F. O. B. Refinery
TideWater
y
all
grades
,
,
y
age" forced them to sharply inT
•
Reunion On April 11
:
The
all
on
S.
New
•
and
.
advance
gasoline
or
7 plUs_l_£-l;x_
D
"
Among
are
•
the
There
a
before the
Peru, Uruguay,
Bolivia and Paraguay.
Economic
fabrication
the
Eastern
-
It
world.
Bradford, Pa.
Corning, Pa.
American States. But other
P.
'
for
28,30
or
Nations.
Argentina and Chile prevented
the
adoption
of
motions
for
prompt
severance
of
relations
;
the
of
favoring
as
the United
gallon
(Bayonne)
4
41-43
.
Y.
Chicago,
that
commodities that play
bur everyday lives."
All
Republics
a
,
,06-.06%
N.
the source of materials that enter
sev¬
erance of relations with the Axis
put
cents
1
Gas, Oil, F, O. B. Refinery
.06-.06%
.06-.06
,
Kerosene,
;
'
i
*
Super.
New York
'
__
______
-
at
Janeirq, by agreement upon
Powers.
y
!
Oklahoma
y
.
.
__
provides the lubrica¬
tion
for
every
machine
that
moves.
It
heats
many of
our
homes and other buildings. It is
thePanAmerican Conferencein Rid' de
gree
a
years.
Cities—-
Coast
explained. "But it is
oil
today flows
he
true
wheels
was
considerable
a r.
0.3
Gulf
through all of the industrial ar¬
-
v
solidarity
Inter-American
advanced;to
also
approxi¬
gallon, high¬
Other
423
Chicago
was
price
'of
of
on
automobile rand '
the
plane,"
by
Americas
The
with *
de¬
was
positively sunk
long while ago. /
quite
growth
rapid
land and in the
air, it is natural to think'of thei
industry primarily in connection
portation both
out of any advantage that
of the sinking might
enemy
the
the petroleum industry has paral¬
leled the rise of motorized trans-i
dealer
■Jan. 22-yrhe Office of Price Administration
announced approval of a
■
Mediterranean
eight
net
new
Price changes follow:
1
"under these
itfjvjr
drea
mately 10.3 cents
(Continued from Page 421)
of the Axis.
Under the
average
price for this
yy Italian
-
FINANCIAL CHRONICLE
with Pure
•I
424
THE COMMERCIAL & FINANCIAL CHRONICLE
try.
It is a sad commentary on
a
physician's V skill : when rthe
Schram, NYSE Head, Opposes SEG Amendments
At Hearing Before House Gommittce in Gapitot
In
voicing
patient's
on
When
judges
change Act of 1934, Emil Schram, President of the New York Stock
Exchange, expressed to the House Committee on Foreign & Inter¬
to
the
Commission."
the House
upon
In
urging
Committee
f-
I
"the
problem
to
The. Securities
and
mittees and that
the
which all of
be
leaving
freedom
that
are
to
time
was
given, in
Nov.
6,
page
statement
on
Jan. 23
testimony
914.
before
our
Mr.
the
It
success
of
we
and
effectiveness
of
tration will be
by
the
the
business
regulated
as
as
which
is
In
that
that
Schram's
the
has
judged
of
Before discussing the specific
of
men
the
are
attracted
the
number
wrong
of the Securities
from
Exchange Act,
type
of
who
are
of
;
proposed
disciplinary
the
^
promptly in
proceedings
than
-
itself.
Commission
need these additional
not
iKpbwers.
To
the New York
use
Stock Exchange as an
asks
example,
—the; administrative organiza¬
tion of our Exchange has been
expel
Commission.
the
"Commission,
is
section
mittee
set
Print
you
ginning
in
out
the
line
at
1,
proposed
Commission
by
commence
111/ at line
gives
on
This
9.)
the
.
be¬
the
and
the
page
Section
Commission
exchange shall re- i
or
modify the.
exchange with re¬
spect to twelve specific matters,
if
power,
fuse,
to
rules
of
and
an
alter
.
violation
vS^V^'h]:
rules
of
Commission,
SEC, * the
enforcing
as
confidence,
question of
a
the
Securities
the
the
agency,: should
have the power to punish an ex-i
best
which-fails
efforts
last
viewpoint of its efficiency, its
sense
of responsibility and its
determination to merit public
of
Exchange Act-or
change
•'
overhauled within
few years. From the
matters
similar
specifically
those
to
The
enumerated.
to
to
have
use
its
its
mem-
.New
v
I
match' the
will
Stock
York
Exchange
against any organization in the
country. We have set up a great
safeguards
many
our
lic
surrounding
benefit.? We
vigilant in
the business
are
of
scrutiny
extended
to
"13.
of
I quote:
The
■
methods
—
of
officers
and
-
now
;
election
committees
>
to
insure
the
a
fair representation of
membership, and the classi-
fication
of
purposes,
"14.
sion
members
(and)
v
<
.
for
:
,
such
V
The
suspension, expul¬
disciplining of mem¬
and
bers."
You
will
recall,
Gentlemen,
that the original bill introduced
in the House
(H.R. 7852 73rd-
Congress,
tained
MUNICIPAL
that
2nd
similar
this
seession)
BONDS
v
FOR LIGHTING AND FOOD
rejected
'
to make a study concern-1
ing these matters. A study was.
made by the Commission and a:
report : was
rendered
byV the:
H. B. La Rocca & Co.
International Produces. Basic Materials
■
Incorporated
-
e i
That Will
Wa^-i^K
Help Win the
to
the Commission's view that the
nominating
1631
tended
to
office.
Straus
committee
perpetuate
..
self-perpetuating
Securities
magnesiiun metal.
lilyl Company
International is also supplying industry and agriculture with vital
materials from mines and
plants at
PHOSPHATE—our Florida and Ten¬
nessee
phosphate mines
are
capacity to supply the
producing at
demand
from
domestic fertilizer manufacturers.
"I
V
POTASH —with International's addi¬
tonnages of.;.
''International Fertilizers"
manufactured
less
to
labor
will be needed
Retailers
are
huge
production
of all
grades of potash
Potash jVlines at
America is
now
of
a
rt
,
and the
v.-
?
the Union
completely independent
foreign supplies of potash.
I
CHEMICALS—phosphoric acids
and
are
being supplied
by International for use in many-essential
materials.
well
prepared to
ture,
a
DETROIT
;
V
y
NEW YORK
-
ST. LOUIS
1
y
.
Morris
1"
and future responsibilities to agricul¬
Mather
& Co...
name
n
.*★*.****
*
*
*
1
,
...
'f;
•
INVESTMENT
Chicago
DRIVE, CHICAGO, ILLINOIS
**********
*
to-—
International Minerals &fChemical Corporation
20 N. WACKER
•.
'"./I/
...
Agricultural Corporation changed its
"
'-V vV\''
v
■
On December 1,1941, International
•
CITY
steadily growing organization, International is
meet its present
'
.
-
industry and America.
.
DALLAS
LOS ANGELES
V
Today with rapid expansion in its activities, with new
manufacturing
plants being'built and planned,'with a larger research staff working
on
product improvement and development for all divisions of the -cof-~
poration and with
Chicago
'
associated chemicals
war
-a:?***:*Direct private wires to
BOSTON
v
at
Utility Securities
r135 South La Salle Street,
t
complete line
Carlsbad, New Mexico,
of Industrial and J
which
crops
by the country*
y
being
help farmers produce
the
y
world in 1942.
tional
of
than 30 strategic points.
FERTILIZER—larger
with
*
'
more
*
*
BONDS
.
-
system
those in
••-v''."•-.V-V
The
Company, will manufacture vitally "needed
-
^
CHICAGO
building plants at Austin, Texas, and Carlsbad, New
Me:;ico, for the Defense Plant Corporation and, with the aid and cooper¬
you.
opening statement, Mr.'
said
that, some^ of^the
exchanges had not agreecl wl{fT<
-
135 South La Salle Street
Randolph
Chemical
Jn his
Purcell
INVESTMENT SECURITIES i
International is
ation of Dow
Commission
,
provisions,£ but - i
Committee
sion
i
r
con-t,
them and directed the Commis¬
1
•
.
cover,
in addition to the 12 items
member firms, for the pub¬
our
be
covered,
-
,
an
powers
the
driven
v,
Com¬
110,
page,
the
exchanges,
Where there-is
the
,
V
as
on
amendments
now
I submit that the Commission
does
by
v:
know, also suggests an amend-,J 1
ment
to
Section
19(b). (Tnis
process,.. I
the Com-
more
ask
we
;>y ments to 19(b)
The
mission will agree that the ex-
H changes act
reasons,
.
Commission proposes that these
the
kept out of that indus¬
or
;
•?
that
doubt
no
;
Vy-
Commission's Proposed Amend-
whatever may be
the speed of
administrative
;
have
associa-
the
of
rules.
these
.
.
.
associations
rules of the
the
men
now
power to
the
those
completely
when
industry
which is being regulated as by
proposals which the Commis¬
sion has made with the respect
to the amendment of Section 19
■.
of
own
For
our
Moreover,
v'
that you reject the amendments
to Section* 19(a) 1
and
19(a)3
a
however f worthy
-
-
over-the-counter
violation
a
tion's
said with respect to
Exchange Commis*
give it
for
exchanges to mere auto.XP.atO.nS. 'y>4-Hy' •'-'K'rr* s.:1 '''
-7
expel. ex¬
members; - who: violate
the rules of the Se4
>
the
members
Commisas
in
ers
adopting
exchange members who violate
right type who
to
of
.fi
to
sion. The Commission
much by the number
as
;
the-Com-*
gave
or.
) that you
the value of these laws will be
Committee
follows:
you
power
curities and
i
come
1934
that the
me
proposal would act
in
markets, did not find it neces- "
sary
to give the Commission
this power to suspend or expel
plished. I do not think it is desirable to reduce the governors
.
•
f
change
being
by the prevention
time
vv;•? :
regulation of brokers and deal¬
,
the object sought to be accom-
•
ex¬
the law
much
of wrongdoing—a positive yard¬
stick. I will go further and
say
issue of
-'.T'-v
,
mission
health, of
and
the
f
Commission's Proposed Amend¬
ment of 19(a)! and 19(a>3
adminis¬
judged
success
ot
m&nagement
complicated rules
untried:,; rule,
,
point out that the
the Maloney Act, relating to the self-
Congress
deterrent to the adoption of any
r-
want to
necessarily
ex¬
an
exchanges are not the
of a single, effort, but
represents years of accumulated
experience. Unless our forward
progress,.is to be^halted, this
process
of evolution must: be
permitted to continuey.lt seems
to
Commission
I
a mem-,
of
,
many
...clear
interfere with the effi¬
.
and the
their
Se¬
changes. 'J',!'/ "•\
I
misjudge
times, however,
point where the
usefulness of the laws
to
cient
Unless
the
at
are
the
tend-dokeep desirabld
people out of our (exchanged
negative
a
—
to
now
would
by the preven¬
abuses
turn
me
expel
or
violation
a
our
& sion's
Exchange Commis*
for amendment
to Section 19, and let me point
out to you why we thing that
the adoption of such proposals
time have
a
v
sion's proposals
is
return.
•
zealous
curities and
the tenor of the
con¬
at
of
yardstick.
stantly changing problems in the
every-day administration of our
His
measured
tion
Exchanges
independence
markets."
Let
laws and of their admin¬
been
Commission
needed to deal with
to
it is
as
apprehending- and prevent¬
ing occassional wrongdoing,
j
machinery—abuses
agree will never
permitted
these
the
and
y.
in
us
istration should for
com¬
thq House Committee on Oct. 30,
urged at that time "the desirab.lof
honest business
1933
Exchange
-
only natural that the
who previously had been heard by
ity
Securities
market
our
be given power to stay new rules
of the Exchange.
Mr. Schram.
the
the
of
specific instances of wrong¬
doing and of certain abuses of
the powers of the Commission be
extended to include the methods
and
of
largely disappear, and
agency will be as- zealous
avoiding interferences- with
in
Act
different
product
will
ness
of
he likewise indicated
his objections to the proposal that
officers
the
Act of 1934 were, as you know,
written
against a background
growth and
exchange;
of
regulation of
industry.
\
suspend
for
The
•:.
change Commission and some
segments of the financial busi¬
the broader
hampered in our disci¬
plinary procedure by the cum- (
bersome processes under which
give the Commission
change rule.
between the Securities and Ex¬
a
Introduction
■'fy:
members who violate rules of the
election
minute
take
we
not
are
must operate.
ber
of
that
development." Mr. Schram op¬
posed the proposal to empower
the
SEC
to
expel
exchange
of
to
to
firms. Our disci¬
our
the
to
by
wrongdoing prevented, the dif¬
ferences which have= developed
of
securities
,
is essential
like
to discuss with you
desirability of preserving the sexf
regulatory
powers
of our ex¬
changes" Mr. Schram stated that
"in a private enterprise
system
such as we all are seeking to pre¬
serve,.. Governmental
regulation
cannot
provide
tne
incentive
which
would
conduct of
pline is swift and stern. And
the registration of an exchange
industry regulated,
amount
with
the power to suspend or revoke
or
the
comply
entirely
ani
matter
regulating agency
by the suc¬
as
issuers
But rit
■•>
-
exchanges
our
,
success
the
well
"the
,
and
the law, or to suspend or expel
a member who violates the law.
-
eradicated, but ;the
the
its
of
cess
as
state Commerce the fear that the cumulative effect of the proposals
question "would be to transfer the management of
records
patient died"
Jan. 23, his objections to proposals of the Securities
and Exchange Commission as to amendments to the Securities Ex¬
in
chart
disease was
bers
Thursday, January 29, 1942
-
Ay*
evil
Volume 155
Number 4039
THE COMMERCIAL &
not
FINANCIAL CHRONICLE
425
was frankly
recognized by our
Exchange some-years ago. There
was, in fact, a strong demand
but it is the best "method which
this
Chairman, I want to take by banking institutions in financ¬
opportunity, to thank you ing the expansion of plants tieces-
has
and
the
from -within
■
basis of
,
-
ship
to
As
a
Stock
our
Constitution
>
Governor
prohibit a
serving
for
two
consecutive
words,
Gov¬
a
is not
eligible for reelec-,
tion if he has served two terms,
but he again becomes eligible
after
•••••'•S:
,
member¬
to
as
so
In. other
ernor
'
owm
from
than
more
terms,
-
correct this situation.
result, the New York
Exchange, mended
its
interval
an
Under
nating
of
one
method
our
of
year.
nomi-
Governors, we have a
Nominating .committee
which
is
elected
;
to
.
serve
by
for
a
the
membership
term of
Membersof
one
Committee are not eligible to
succeed themselves. The Nomi-
Committee » presents a
of Governors after re¬
questing the members ; of Jhe
Exchange to suggest, nominees
.nating
; slate
and
,
after
giving
V of the Exchange
members
opportunity
themselves fully and
the qualifications of
to express
freely
the
on
an
■the persons proposed. The Com¬
mittee also presents a slate of
nominees
for
the
succeeding
;
v
Nominating Committee and, in
making these nominations, the
Committee
bership
-
■
i
the
With
for
gives
the
to
mem¬
opportunity.
to candidates
same
respect
vacancies
the
on
Board
of
Governors and for membership
the Nominating Committee,
on
the
membership
of the
Ex¬
change, under the Constitution,
A has the explicit right to pre¬
;
sent
independent
nominees.
A Our Constitution provides that
forty
g
members
may
propose
a
nominee for elect've office and
one hundred members may pro¬
entire ticket. This privi¬
lege is well known to the entire
pose an
i
membership and there is no re¬
straint upon the exercise of it.
Our
nominating
truly
devised
been
yet
a
method
Mr.
representative,
the
on
In its proposal to
amend Sec¬
tion 19(b), the Commission also
asks for power with respect to,
I quote: "The suspension, ex¬
pulsion and discipline of mem¬
bers." We do not know the
tent
the
of
to
stitutional
by
form
reaffirmed
by
Commission. '• ■'
; r;;I
V
>:
■
Industries
Securities
v
A
Proposed
Amendment to 19(b)
:
in-j
words "and similar matters" be
deleted
from
tion. 19(b).
the
This
with
consonant
present
Sec¬
desire
for
greater certainty in the matter,
of regulation. We feel that those
in
that the
change attempt "in
fashion
to
in
which
the
Commission
may
legislate with respect to our
changes. A'A/A
In
its
ex¬
Bank
We
enumerated.
fore,
that
the
the
"and
words
similar
mat¬
Amendment
Stay
is
The
Temporary
on
Commission
also
that they be given
confidence
to the
continue
to
Auto
limited
a
rule
new
falls
Commissioner
of
if
and
of
Internal
the
under
this
section
do
all post offices and offices of col¬
lectors
of
internal
Commissioner.
fixed
a
the
nation
is
engaged
war, we must be
vest
,
cost
in
Government
ordinary
powers
bilities.
To
the
windshield
in
any
case
extra¬
greatest
windshields
stamps
statement
NATIONAL
-
'
.
...
Ik
v
—
ficials
pos¬
affixed
a
if.
!'
#
'T:•>*«'>.
CVf
of
In
conclusion
frankly,
39 South La Salle Street
the
CHICAGO
Teletype:
540
that
said.
V
COMPANY
fear
effect
be
transfer
to
agement
of
of
Commission.
the
man¬
exchanges
our-
No
to
1. FOR
regulatory
INDIANAPOLIS
other.
I
—
management
would
like
to
Grain, Cotton, Commodities
most
Stocks, Bonds
an¬
repeat
powerful
ally, which
a
governmental agency can have
is an industry which is will¬
ingly cooperative.
Security Analysis Furnished on Request
It
is
sense
MEMBERS
New York Stock Exchange
rJ^.
New York Cotton Exchange
Chicago Stock Exchange
our
and other leading exchanges
Private u-ires to all principal cities of
Uniied Stales, Canada and Cuba
the
the past
the
ability
Winnipeg Grain Exchange
narrow
or
selfish
that I urge upon you the
in
from
Chicago Mercantile Exchange
no
desirability of preserving
self-regulatory powers of
exchanges. Governmental
trols
Chicago Board of Trade
in
various
-
-A.
r...
' V,
plants
are
must
1942,
prepared to supply quickly
thousands of carloads
of plaster, wall-
will be
in 1942, according to govern¬
ment estimates. For
instance, uninsulated
homes now waste $1,000,000,000 in
fuel every year, menace national
health,
overburden transportation systems, and
require man-power sorely needed for
armament production. National
Gypsum
Company is ready to serve this market
with efficient rock wool insulation.
4. INCREASED
BUILDING
National
farm
be
STRATEGICALLY-LOCATED
MODERN
or
in¬
of
1942's
distribution plan to
$500,000,000
a
estimated
building market.
.
TODAY
cates
>.'
,•
NATIONAL
*
*
*
GYPSUM
COMPANY
dedi¬
all its
sources
to
energy,-experience and re¬
the most important
building
job in its history. It won't be an easy
job and it won't be a quick one. But we
are
confident that
a
unified
America
going
are
PLANTS
Medicine Lodge, Kan
Fort Dodge, la
Savannah, Ga
Tex
Luckey, O
York, Pa
Pa
Oranda, Va
Mobile,
Niles, O
Alexandria, Ind.
....
Rotan,
Dubuque, la
BUILD
BETTER WITH
Bellefonte,
Saltville, Va.
Newburgh, N. Y.
Ala
Dover, N. J.
Gold Fond
govern¬
Insulation
develop-
,..
Lath
BUILDING
....
.,.
MATERIALS,
including Plaster....
Metal.... Sound Control.... Wallboard
Lime
..
.
Sheathing
..
.
Wall Paint,
is
to rebuild a world where homes
safe and men are free.
National City, Mich.
N. Y... Portsmouth, N. H
"
neces¬
Gypsum Company has
already developed
serve
will
produce agricultural products
by the United States and her
to
sary
needed
allies.
FARM
New York, N. Y.... Clarence Center, N. Y.... Akron,
150 BETTER
—ment.
DEFENSE WORKERS
»*
according to the
O.P.M. To speed up this vital $2,000,000,000 job,. National Gypsum's 21
sential
and
his
.--•<*
*
■■■:
in
built
be
mental regulation cannot
pro¬
vide the incentive which is es¬
to growth
"'{■
HOMES FOR
2. 400,000
21
segments
preserve,
and
$3,000,000,000 IN HOME REMODELING
necessary
con¬
economy to exer¬
cise self-discipline. This we all
recognize.
In a private enter¬
prise system such as we all are
to
resources
President
3.
the
national
seeking
-.7
.
our
have resulted
unwillingness
of
the
quantities for Army and Navy bases and
in industrial plants. Capacities at the
company's four chemical lime plants and
three rock wool plants are ready for
other important defense needs. :<-U".
Regulation is
/what I have often said, -r- that
in the field ..oL,regulation the
National's
NEEDS,
production
efficiency and volume of the remain¬
ing 18. A new defense-developed insula¬
tion board is already being used in large
an
economy.
thing
one
a
the
industry is to
cope successfully with the everchanging
conditions
of
our
modern
CHICAGO
MILITARY
to
board, sheathing, lath, paint and insula¬
tion.
war
win.
aides. In the past year, we have added
three more plants and greatly increased
particularly the responsi¬
bility that are required if a
Thomson & McKinnon
available
are
and
or
IMMEDIATE
entire research and
however capable, can
supply the initiative, the energy
agency,
business
a
are
grim determi¬
nation to deliver the goods, whatever the
cost. National Gypsum
Company recog¬
nizes this responsibility, and has organ¬
ized to cooperate in these four ways:
say,,
all
in
measures cannot
It will take sacrifice and
that \
is
of
*
concern of the building industry is the safety of American lives
proposals, if adopted,
would
the
me
-1
»•
:
^pHE first
where half-hearted
let
our
cumulative
these
I'
.'
-
not
posal
unless
by
should
at
by
V-„-■■>.'*<
GYPSUM
-k
■
-
the
State
some
have
appro¬
priate place, Internal Revenue of^
resoonsi-
and
the
out
prepared
-V.•
••
of
traffic regulations. Vehicles with¬
When
to
to
prohibited
sities.
in
The
stamp is $2.09 and it is to be af¬
assistance to industries engaged
in the production of war neces¬
'
rule.
a
The
revenue.
to
object to the pro¬
the
Commission
as
Rev¬
Guy T. Helveriag announced
Jan. 15 that the motor vehicle
use tax stamps are now on sale at
Melvin H. Baker, President
Commission
"i'
enue
the
Section
to
on
period, if
within
powers
and
Stamps On Sale
dis-
principle of encouraging
to give a maximum of
banks
A
v
in
upon
they be novel in form; and cooperation of the public in apply¬
lending agencies of the Fed¬ ing for their stamps at the earliest
eral Government must adhere possible date was requested by the
and American homes. We
to
lock with sympathy upon sound
credit transactions even
though
pro¬
Conclusion
Bldg.
have
contribu-
properly be financed by them.
Supervisors must be prepared to
power
■*.
and
those banking serv¬
ices which long have been fos¬
tered by American
democracy.
those credit needs arising
cover
effectively
effort
time
same
Building Industry Tackles its Biggest Job
of New Rules
limited in the Committee Print.
0020
must
is
war
date, the New York Stock Ex¬
change. of
its ?rown,, volition
stayed the effectiveness of the
Bonds
of Trade
to
rely
from the emergency which may
the
participation
quire its alteration. In the only
proceeding which has been
County and School
WABash
Banks
consid-
Banking
making it pos¬
sible for the public to continue
tion to the armament program.
ty.
it
our
cified in the statute itself.
We
CHICAGO OFFICE:
at the
co¬
banks
that
tion, that those subjects be spe¬
proposed ^application of
CG
enabling
maximum
a
seriously
this
the
feels that they may want to re¬
Municipal,
Phone:
of
purpose
mind,
the Commission under this Sec¬
that
(fanpamj
RANdolph 3900
believes
promoting
occurred
a
be
With
extraordinary
credit needs
of
industry.
In
assuming this attitude the Board
discussing the present crisis
make
adopted
by
the
Board
the year.
One
of
the
regulations relaxes the restric¬
to
National
Act.
have
will
war
in
has cooperated with the
banks of this State in their de¬
sire to meet the
policy among banks,
bank supervisors, and govern¬
mental lending
agencies, for the
Financing Defense
applicable
the
of
serv¬
Board
,
ordinated
The
ters", and if it finds that there tions
are
other
specific
subjects,
which should
be entrusted to'
companies to
housing projects
nation.
the
of
after the
possible for
to emphasize the need for
there¬ lations
delete during
urge,
Congress
VI
the
that
problem of returning to normal
since the last report have served
State
and
defense
Events which
Relaxes Restrictions On
Securities
it
of
exent
industry and banking,
even during the
emergency, are
assumed
by Government, the
the Board said:
report of the New York
Banking Board, which was
Exchange Commission says
made public on Jan. 19 with the
that if the
phrase be elimi¬
nated, it would be necessary to annual report of the State Super¬
expand materially the limited intendent of Banks, William R.
number of general matters now White, releases the text of regu¬
the
report
brought
Board
In
-
with
the
ices
unduly
banks and
trust
Title
Housing
Ex¬
exchanges and those con-1 New York Curb
Exchange."
templating coming into our ex¬
changes, are entitled to have
a clear-cut picture of the field
NY State Banking Board
enumerated
drniritiPB
Tel.
finance
sensible
some
cooperate
our
19(b),
2100
Stock
and
under
ment world." He
proposed widen¬
sugested
To
re¬
would
makes
must
we
private industrial and
power
eration
holding membership in the New
York " Stock
Exchange, accused
the
Exchange
management A, of
having "little or no comprehen¬
and
however,
aggravated.
banks
ing the circle of membership by
is
including non - member -dealers
suggestion
our
removes
financial
.
regulation
of
The representatives of the
sion * * * of the place of that in¬
dustry have proposed that the' stitution in the
American invest¬
;i/
utilize the
of
.supplies.
participation by
companies in financing the
production, acquisition and carry¬
ing of strategic and critical mate¬
rials by Federal agencies.
A third
tion
change for
NEW YORK
spirit
which
sible degree,
in the prosecution of this effort
trust
con¬
of government
your
regulation
strictions
of
the serious problems
proposals encroach upon
i which are before
you.
self^regulatory machinery
of our exchanges and we earn¬
At the hearing Jan.
23, accord¬
estly request that you do not ing to the Associated
Press, Ciare
adopt these proposals of the Morse
Torrey, member of a firm
to stay any new rule of the Ex¬
TORONTO
our
and,,
limit
the
poses
,.
in
materials*
Another
have
fairness and by your thoughtful
and objective search for a solu¬
these
The
fflltattttn*
defense
ticipated in these hearings must
his faith
for increased production
saiy
com¬
us
have had
fear that
we
this?
throughout these
hearings. Anyone who has par¬
the Commission under this pro¬
posal. Here again
of
you
shown
ex¬
sought
powers
members
mittee for the consideration and
the courtesy which
long experience.
very
year.
Nominating
a
only
sca&u/t
426
THE
COMMERCIAL &
FINANCIAL CHRONICLE
Thursday, January 29, 1942
^
•
r
Savings And Loan Ass'ns
',.
To Buy Defense Bonds
the
vest
their
the
expected
funds
own
widely
rent
bonds, according to the
issue
Loan
of
Bank
view"
'
F
G
and
$50,000
to
Now
in
means
loan
the
offer
by
which
associations
the
City
houses,
301
321
242
987
"Review."
"The
to- the
con-1
institution
tacts both
employers and employees," it states. "The former agree
to
collect
pay
the
a
the
864
installments
which
separate account
j
to
reporting
York
centers.
for each
centers
82 058
12 994
the
10 393 '
*
:
■
national
series
covering
141
centers,
available
beginning with
■
.?*
.
V,
■
10„
SOFT
COAL,
„
Daily
including
average
mine
17,
fuel
Jan. 18,
Jan. 17,
Jan. 18,
1941
1942
1941
average
1940
1937
£i92u
108
.-
:
;
+'
117
iy
western---..
-
26,030
24.845
v
1,656
474
£6
114
222
205
781
835
892
607
234
257
227
240
196
"
32 -P
5
—__i—
G:.
'•
,
40: A
,
■
•
•
659
;
29
J
85
25
140
190
,
-.65
.
21
70
.
41.
15
80
28
•
.
33,.f
13
90
32
•
v
v,;>
6
99
"2,111
1,395
490
43
Utah
32
82
,
.
2,403
2,473
>
73
;
/ 50
814
2,231
2,737
3,402
124
130
114
8
9
15
14
26
us
100
104
96
117
109
390
■
-
■■r
:
346
309
311
307
211
•>
39
■
.
,
42
39
1,840
?71
708
152
6
1
11.050
9,800
_
PNorthernStates
681
>Y
Total bituminous coal—_*
827
Total, all coal
includes
a
in
Kanawha,
V
■
ecords
of
>eorgia,
'
the
Less than
Skis
|
Carolina,
Mines,
and
n
1.410
1,188
1,968
12,135
13.813
C. & O.; Virginian;
K. & M.; B, C. & G.;
and
b Rest of State, including the
Includes Arizona, Cali-
c
d Data for Pennsylvania anthracite from published
e
weekly rate for entire month.
/Alaska,
included with "other Western States."
Average
Soutn
Dakota
tons.
1.000
Electric
of
Bureau
North
..
11,850
11,479
Mason, and Clay Counties,
ornia, Idaho, Nevada, and Oregon,
11,761
10,947
1,056
10,528
operations on the N. & W.;
the B. & O.
>n
■
186
1?;a
11,199
728
11.877
Pennsylvania anthracite..
762
1
156
„..
10,069
1,134
669
;
130
10,143
74
1,982
686
;
133
56
1,896
157
1
V
43
1,872
2,075
192
Vest Virginia—oSouthern
Western
78
626
-
129
151
...
_
Washington.
488
v
10
.
—
/irginia
67
500
73v
2,343
ennsylvania bituminous
Tennessee
—
70
512
>
88
605
—-—
Panhandle District and Grant, Mineral, and Tucker Counties,
.14,770
*••■«/)
1,300
258
-
38
.
and South Dakota—
Texas
1,771
16,448
226
■
'
equivalent of weekly
*5,786
<■
66
,
639
292
;
Jhio.
23 029
1,859
6,774
221 >
:l
'
North
i
1,609
93
♦
513
436
"a
902
1937
9.654
434
.
1,258
1.183
507
178
Jan. 16
1,842
</)
'
96
\
200
169
1
204
Vyoming—
11.050
6,480
2
274
OF
1,883
output
>
2
332
47
New Mexico—
Crude petroleum b—
Coal
Jan.
Jan. 9
4
176
1 V.'
V
Montana.—
the
11.300
_
/•'
•
1941
•
"
Jan. 1 to date-.
Jan. 10,
1942
1942
"
and
district
Jan. 13,
320
68
WITH COMPARABLE DATA ON PRODUCTION OF CRUDE PETROLEUM
a—
'
.
operators.)
Jan. 11, >
91
•■•-2 11
__
was
THOUSANDS
•;
from
reports
4
1,435
•Other
IN
16,968
•
Micjigan.^--
of 250,000 tons, or 2.2%, over the preceding week.
Production
corresponding week a year ago amounted to 9,654,000 tons.
S. Bureau of Mines reported that production of Penn¬
sylvania anthracite for the week ended Jan. 17 was estimated at
OF
322,400
15,917
BY STATES
231
4
.Maryi&ndL-'-iw:---.-—
The U.
PRODUCTION
the
'.-1942
Kansas and Missouri.-.-—
in the
STATES
286,500> V
.
.
tonnage
Jan. 3,
v-
} '-365 >-
lowa
crease
UNITED
.
"1
Indiana
The Bituminous Coal Division, U. S. Department of the Interior
in its latest coal report stated that the total production of noft coaj
in the week ended Jan. 17 is estimated at
11,300,000 net tons, an in¬
over
;
;— Week Ended
1942-
.
'■
1-
Illinois
1919
1941
: *'4,014,000
Tons)
Net
from
•
—
Jan.
Georgia and North Carolina 'fir'
;
Total,
I
size."
;;
-V'
'>'<*'
-
Bituminous coal
t
of
Vrkansas and Oklahoma__U- •■("3.:■ 104-
66.699
790
.,1929
4,325,000
f 2,474,000
>
20,294'
PRODUCTION OF COAL.
Kentucky—Eastern.._
in
em¬
sufficient
•
State
48 571
5.282
030
—Week Ended
chases bonds for the employee as
reaches
125.664
53 819
1
—
Jan.
account
148.870
3 259
345,000
V
17,157',.".. :
returns
—
Alabama.—
9 331
1941*.
■
Jan. 19,
604,000
2,062,000s',
120,100.
Thousands
annual
final
\iaskaj_
6 325
leading centers*.
Other
NET TONS,
pur¬
of
or
...>,,
9 848
269
i...
.
2,171,000
revision on receipt of monthly
to
i';'
■
3.136
3 914
11
Clty*_.
1942
Jan, 18,?
.
•
3.713
;;
..
-(In
Coiorado-^-.iA.«i-
274
ESTIMATED
maintains
ployee. The institution then
the
4,684
4 123
./'
;
'
"
2,188
12,305
1,232,000 tons, an increase of 405,000 tons (about 49%)
preceding week.
Output in the corresponding week of
each I
1,184,000 tons.
day and to transfer them
association,
2 813
sources
•
Weekly Goal And Coke Production Statistics
in
assisting in
pay-roll de¬
according
163
390
♦Included
employees of factories and bus- 1
iness
ttate
subject
are
3 863
214
'
•' >'
w;
WEEKLY
v
18,218
-
i
(The current-weekly estimates are based on railroad carloadings and river shipments
3 941
4 972
■
ANTHRACITE
Jan. 17,
-.
1,184,000
19,357
colliery fuel,
ESTIMATED
*nd
4 915
Francisco
133
b Excludes
tions. '
4.799
22.470
competitive with
.
■—Calendar year to date—r-
;1941
..
pourid'Of coal.
per
directly
TONS)
NET
786,000- :1,125,000;1;
,19,743
-.•'
283
* :
827,000
-
B.t.u.
not
Includes washery and dredge coal, and coal shipped by truck from authorized opera¬
a
8 936
299
(IN
Jan. 18,.
138.200V:,V 135,500ir.
v
average-
6,658,
-
is
'.TV.* •',■!
total
S.
13,100
PENNSYLVANIA
OF
1942
'
'"-8
52 923
1,365
—
New
duction plans for the sale of bonds !
to
5.947
,
are
development of
374
San
victory program."
Associations also
10.988
1942-
/■;
and
: U.",
COKE
Jan; 10,
232,000
U.
and,
assist
can
811
Jan. 17,-
>•
i,
7,441
V
382
tangible
savings
8.054
Dallas
such invest¬
another
8,599
58,996
476
381
Total,
> including
Colliery fuel
Daily
>1941
1,751
140 Other
ments
550
3,604
451
Minneapolis
Total,
Jan. 22,
,
1942
821
-
4
oil
products
702)..
page
Week-Ended-———
b Commh '-prodUCiiion-l.iTO.OOO
..
v"'<
,
Jah. 21
572
Louis
Kansas
and
v"-'
680
Chicago
new
^
of
petroleum
BEEHIVE
.i..
Penn. anthracite—•
'
f
barrel
per
PRODUCTION
AND
''
V..
..
reporting
4,321
Atlanta
St.
likely to curtail the vol¬
outlets,
1941
_
ago.
compared
..
B.t.U.
the supply.* of
V'";
Efceliive Coke--..
.
1942
Richmond
ac¬
mortgage loans,
home-financing institutions will
probably
be
faced
with
the
ment
year
of
ESTIMATED
13 Weeks ended
Jan. 22 ,
Cleveland
quired by many associations in
'
1
of historical comparison and statistical convenience the
b Total barrels produced during the week converted to equivalent
purposes
6,000,000
Note, that most
18%
cr
.
assuming
coal-.('-'Minerals.; Yearbook," 1939,.-
DISTRICTS ;
uollars;
York
Philadelphia
substantial amounts. As government restrictions on home build¬
of
ol
Sostoa
any
already have been
are
mull.ons
RESERVE
■
,
Week Ended
can
one
ume
FEDERAL
(In
of
bonds,
institution
up
ing
BY
"Re¬
purchase
1
SUMMARY
.V
Federal Reserve District—
thrift
a
a
increase of 11%
was an
centers there was an increase of 23%.
says:
"Series
year,
$148,870,000,000,
with the corresponding period a year ago, and at the other
in
cur¬
The
to
corresponding period
City there
Home
Federal
amounted
Jan. 21,
also
which
the
"Review."
21
reported for the
At banks in New York
higher denomination Series F
and G
total
the
Jan.
for
production of lignites
Coal
by banks in leading centers for the
aggregated $11,269,000,000.
Total debits during
ended
weeks
above
in¬
to
13
Up 20% From Last Year
reported
as
ended Jan. 21
week
people's bonds," savings and loan
are
debits
Bank
In addition to pushing the sales
of Series E Defense bonds, "ihe
associations
^Includes
Bank Debits
:,y.iV/
Gdput For Week Ended Jan, 24,9 §42,
14.8% foin Over Same Week k 1841
The Edison Electric Institute, in its current weekly report, esti- >;
that the production of electricity by. the electric, light and
power industry of the United States for the week ended Jan. 24. 1942,?
.
mated
was 3,440,163,000 kwh., which compares with 2,996,155,000 kwh. in the?
corresponding period in 1941, a gain of. 14.8%.
The output for the]
week ended Jan.
increase of
17, 1842,
14.5%
was
estimated to be 3.450,468 000: kwh.,
194L
}
an
j
,
t
the corresponding week in
over
PERCENTAGE
INCREASE
PREVIOUS YEAR
OVER
Week EndedJan. 10, '42
Major Geographic Divisions—
New
Middle
States
16.5
Mountain
Hocky
33.9
Pacific
-^13.7^v:-
14.4
Central
West
.vj-;
11.5
;
;
14.5
Industrial
Southern
16.9
12.8
Atlantic
Central
vi Jan. 3, '42
"
18.1
England——
22.-7
Coast.1
17 8
v
*
;
:
•:;^vi6.2,v;,i;.
5 v.; 24.5
'
>.
Total
■
United
♦Revised,
15.6
r
y:'>'■
*.■
'Yi'-'r^rCV'V'DATA
;
*15.7
States
FOR RECENT WEEKS (Thousands of Kilowatt-Hours)
-.'iK'J::v• *.% Change
'p
• 1941
Week Ended-
-"♦1941
1940
1938
1939
1940
over
>
1937,
i
2,903,727
2.425,229
+ 19.7
2.145.033
1.937.486
2.139.281
r- 3 178 054
2.651,626
+19.9
2,402,893
2,154,099
2,358,438
3.199,105'
2,681,071
+ 19.3
2,377.902
2.152,779
2.321.531
3 220,526
2.760,935
+ 16.6
2,426.631
2,159,667
2,312,104
2,341,103
«
|
•
3,263.082
2.762,240
+ 18.1
2,399,805
2.193.750
+ 17.9
2,413,600
2,198,266
j
2,360,9-0
3 233 242
mankind's
the hand
can move, gas
bidding. In homes,
and electricity respond
2,365,859
2,202,454
2,351,233
2.442,021
2,216,648
2 591,957
+ 20.9
2.375.852
2,109,985
2.211,398
2.773,177
+
19.8
2,532,014
2,279,233
2,338,370
f
3 273 375
2,769 346
+ 18.2
2,538,118
2,211,059
2,231,277
5
2,816,358
+ 16.2
2,558.538-
2,207,942
2.331.415 ;
3,330 582
farms, in factories, shops and
on
2,203,560
2.434,101
+ 19.2
3 322.346
to
2,453,556
+ 19.0
2,736 224
3 273 376
as
+ 17.9
2.714.193
3 132,954
quick
2,745,697
3.261 149
As
2.743.284
3 238.160
3.230.750
i
2.792,067
+ 19.3
2,554,290
2,228,586
2,339,384 i
2,380,3011
these ever-faithful
servants
perform marvels of
+ 19.1
2.583,360
2.251,089
2.324,750)
2.837,730
+ 16.8
2.576,331
2,281,328
3 340 768
service.
2,817,465
3 313 5^6
stores,
3 355,440
2.866 827
+
16.5
2,622,267
2.283,831
2.327.212,
2,297,7851
-
production for
as
our
efficiency,
save
2.245,4491
national defense.
Gas
as
+
17.3
2.608.664
2,270,534
+ 17.9
2.588,618
2,276,904
2,214,337 i
+ 15.8
2.587,113
2,325.273
2,263.679'
2.839,421
+ 14.4
2.560.962
2.247,712
2,104.5791
2,931.877
+ 13.9
2,179,411 !
3 414.844
fuel, electricity
2.882,137
2 889.937
3 247.938
time and labor, speed
2,858,054
3 347 893
3 339 364
promote greater
3 380.488
3.368.690
They
2.975,704
+ 14.8
2,605,274
.
2,334,690
2 654.395
.
2.376,541
2,234.135 i
3.475 919
+ 15.7
2 694,104
2 390 388
2.241.972 ?
3.052.419
+ 14.5
2.712.211
2,424.935
2.053.944 ;
3,234,128
power—each is clean, economical, unfailing, instantly
3.003 543
3 495.140
2,757,259
17.3
2.464,795
2,174,816
2,033.319 ;
+
% Change
available. Both
are
indispensable
to our American way
1942
of life.
Week Ended
Jan.
"an.
Jan.
1942
3—
Tan.
1939
1940
over 1941
1941
1938
♦3.288 685
2.845,727
+ 15.6
2.558,180
1,619,205
1.542.000
*3 472 579
3.002.454
+ 15.7
2.688,380
1.002.482
1.733.810
17_.
3.450.468
3 012.638
+ 14.5
2.673.823
1.598 201
1.736.729
24.
3,440,163
2,996,155
+ 14.8
2,660,962
1,588,967
1,717,315
10.
•Revised.
DATA
FOR
RECENT
(Thousands
MONTHS
of
Kilowatt-Hours)
-
% Change
.
=
1941
1937
I
1940
(anuary
13.149,116
11,683,430
+
12.5
10.183,400
9,290,754
9,787,9011
F'ebruary
11,831,119
10,589,428
+ 11.7
9,256,313
8,396,231
8.911,125*
9,886,443)
March
April
12.882,642
-
November
communities
10,121,459
9,110,808
9,525,317
8,607,031
9,868,962
8,760,840
9,665,1371
11,026,943
+ 20.0
10.068.845
8,832,736
9,773,908
+ 19.1
10.185.255
9.170.375
10,036,410
14.118.619
August
customers in 1570
17.4
+ 18.9
13.836.992
September
and 391,000 electric
+
+ 10.3
11,118,543
13.231.219
July
gas customers
10.974,335
10,705,682
13,218,633
June
serving 1,183,000
1940
12,449,229
_
—
May
October
over
1939
1938
1941
December
Total for year
11,616,238
11,924,381
+ 18.4
10.785,902
9.801.770
13 001.644
11,484,529
4-21.0
10.653.197
9,486.866
14,756 951
12.474,727
+ 18.3
11 289,617
9,844,519
11,037.816
9,893.195
12,213,543
9,573,698
10.308,884
9.908 314;
10 065.805
9,506,495 >
12,842,218
11,476,294
10,372,602
9,717,471
138,653,997
124,502,309
111,557,727
117,141,591
;
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4039/'
Volume 155-
First Nat'l Of
pared
Pittsburgh
$132.55
1938.
Deposits, Earnings Up
1
Total
to
amounted
Dec.
$138,996,464
1941,
31,
as
compared with
Total
amounted
resources
to
1941
of which amount $45,564,833, or
30%, was cash or due from banks.
Loans and discounts totalled $24,$153,603,582
as
of
Dec.
31,
increase of $7,054,605,
40%, over like period of 1940;
S.
Government
obligations
591,364,
or
IL
:
;
an
Frank r. Brooks
.
,
-held
-
.
'
capita
1941,
the Treasury, the Bureau itof the
,
»
The
piled by The Conference Board
from information supplied
by
$123,386,728 on Dec, 31, 1940, ac¬
cording to the annual report made
public by Frank F. Brooks, Presi¬
dent. Earnings for the year to¬
talled
$1,466,071,
equivalent to
$24.43 per share of capital stock.
$93.89 per
Census, and State and local offi■
cials:
V"[
V'j
'•
Government Expenditures by
Fiscal Years
■,[ ;'v
'i-VstjS (Millions of Dollars)
'/•**"
■'
State
■
/ '•
il,,-.
vv
5
\Fed.
Local
State
1938.
6,993
8,532
5.601
3,177
1939
3,322
1940*
1941*
.
8,786
.
12,489
-
5,494
___
,
ands.,:
Local
\
...■
under
the
delivered
per
wheat
will
aid
1941
grade
of
on
the
basis
protected
by
of
a
an
as
feed
or
fed
livestock
mittees of the
Agricultural Ad¬
(1)
justment
1941
wheat
of
wheat loan value
Administration
subclasses
other
use as
extent
for
wheat
sales
plan.
added
acquire
to
necessary
sufficient
the
feed
CCC
will
\
will
is
that
the
continue to sell wheat under the
export
grams
and general sales pro¬
previously announced.
v
amounted to
$50,844,341 as compared with $33,*943,395; ./other
investments,
inthe
by
bank
[cluaing state, county an;t munici[pal bonds, other bonds and stocks
i$27,944,694 as against $27,97/,2<5;
«As of Dec. 31, 1941 the book value
[of the capital stock was $228.62
{Compared with $220.30 at end oi
'1940.
*
"Deposits
of /. all ' Pittsburgh
{banks during 1941 crossed $1,500,-
[000,000 and our percentage gain
deposits was far more than
[that of some of our neighboring
; in.
.institutions," Mr. Brooks states in
[letter to stockholders. "Pittsburgh,
[as the heart of the steel industry
enjoyed, along with the rest
[has
;of the country, a year of excellent
[business. In fact, 1941 was the
[best year on record in many re*spects for business in the Pitts¬
burgh
district. " Production 1 in
[many of the • leading: industries
readied " new
hign levels," the
letter
states.
Government
Expenditures
In 1941 Pass 1919 Peak
Total
Stats and local
Federal,
government expenditures are esti¬
mated by the Division of Indus¬
trial Economics of The Conference
Board at $21,939,000,000
in the
compared with
$18,186,000,000 in 1940, $17,34 3,: 000,000
in 1929, $15,771,000,000 in
;
1938, and $21,107,000,000 in the
[fiscal year 1919, when the cost oi
fiscal year
1941,
Ithe First World War raised total
expenditures to a peak which was
not exceeded until the fiscal year
I
;1941.
'Jan.
announcement of
22, the Board further said:
its
In
expenditures in the
1941 were not quite
as
large as in the fiscal year
1919, in spite of the efforts of
Feaeral
*
fiscal year
'
the Federal Government to ex¬
pedite
*
national
State and local
1
defense.
But
government ex?
penditures were much higier
than in 1919, so that the grand
>•
and local
}
total of Federal, State
i
I
expenditures was $882,000,000
greater in 1941 than in 1919.
Total State and local government expenditures rose every
j
year
from 1933 to 1941.
this
increase
;
,
1
•
in State ex¬
1941, were not as large as in
1929, when they reached an all-
high record.
Federal,
Total
1
was
Most of
penditures. Local expenditures,
uo to 1939, and probably up to
time
Power for Victory
as
State
and
government expenditures
amounted to $165.31 Der capita
in the fiscal year 1941, as com¬
local
Every
is
a
electric switch in America
our
forge the weapons of victory.
Almost
everything
we
ion for the defeat of
more
must fash¬
enemies
over
We have this
because American investors
American private enterprise
built great
electric companies.
We have it because
such
as
to
those forming the
Common¬
long
ago
J
The American
principle of
mass
huge automotive
companies, giant steel mills and other
groups as
vast
wTell
as
manufacturing plants. All to¬
gether these large private enter¬
prises
farm and in the
ships and other war materiel.
The
a
prove
the everlasting
weakness of those who would en¬
slave
us.
factory.
,
since World War I,
Justin JR. Whiting>
able to turn out vast
planes, tanks, guns,
are now
numbers
of
Electric power
PRESIDENT
4
product ion has created electric powTer
began encouraging
ever increasing use of electricity ...
in the home, in the shop, on the
systematically
ever
will
prises
munitions factories
by holding company groups.
4
companies,
wealth & Southern group,
And,
strength of
people and their great free enter¬
plied quickly. Over 80% of all such
lines now in this country wrere built
power
and
them
The combined
which could not otherwise be sup¬
power. And, we pro¬
of it than all the Axis
partners combined.
free
our
requires electric
duce
wrar.
of electric com¬
panies have been steadily extending
high power transmission lines. Pow¬
er is now being sent long distances
shining symbol of the country's
power to
and other groups
Commonwealth & Southern Companies
operate in 10 states where
war
industries
are
hundreds of
located. This group of
companies expended more than $210,000,000 during the past six years to in¬
crease
facilities. Capacities for
electricity
were
producing
enlarged from 1,835,000
kilowatts in 1935 to 2,359,000
kilowatts
in 1941. In 1942 we will have
available
at least
2,544,000 kilowatts.
will help to win this
Commonwealth & Southern Corporation
W-1946
feed.
Such sales will be made to the
as
The county com¬
the
be available for flour, the
or
agreement,
purchaser will be the lower of
'.
21,989
•-v-
corporation.
In order
highest quality wheat
which is suitable for
bond, that the
to
of
and
be
whole wheat.
cracked wheat delivered to the
first
the
It
plan the
feed
wheat sales price per bushel for
made
quality wheat on the market
buy back low-grade wheat
subclass,
wheat will be cracked and used
this
be
corporation may sell such high-
quality will be deliver¬
any sale.
All sales
or
will
may
wheat
bulk wheat for feed will
the wheat
that
able under
in
the
by
those
Sound wheat of any
Also,
partment, which further stated:"
Under
the
Sales
sure
feed.
as
the lower grades of wheat held
pro¬
in
stored
counties where
is used
cents
wheat
except
anid
90
agreements to be
loan value is below 90 cents.
the production program of
department.
,
less than
of
bushel
duced
the dis¬
posal of substantial quantities of
i-.-:.
Total
8 778 "15.771
8,816
17,348
9,400
18,186
9,500
.
*Preliminary.
•
Department of Agriculture
on Jan.
19 a plan for
the
offering
of
approximately
100,000,000 bushels of wheat by
Commodity
Credit
Corporation
for feed, to aid producers of live¬
stock, dairy and poultry products
in attaining the goals established
making addi¬
tional storage space available for
" the 1942 grain crops, said the de¬
I
: '
point of delivery; or (2) the
Commodity Credit sales price
for corn per bushel at point of
delivery.
No sales of cracked
wheat will be made at a price
announced
and -State and local
expenditures to $71.42.
The following table gives the
latest available figures, as com¬
in
of
as
to
check the compliance with the
at
CCC Wheat For Feed
.
amounted
deposits of the First Na¬
Bank
at
Pittsburgh
tional
with .• $137.82
in ... 1940,
in 1939 and $121.48 in
Federal - expenditures
427
428
THE COMMERCIAL & FINANCIAL CHRONICLE
Moody's ffiaily '
Commodity Index
Steel taend Swelled
Tuesday, Jan.
Despite the stringency in scrap supplies steel ingot production
gained a half point to 97% according to "The Iron Age"
estimates.
This week is the fifth consecutive
7-day period in which
the rate has been below the 97.5% level of the week before
Christ¬
mas, states "The Iron Age" in its issue of today (Jan. 29), adding:
20—.
.—.—223.9
Wednesday, Jan. 21_
Thursday, Jan. 22
i*
Friday, Jan. 23—
Saturday, Jan. 24_i
Monday, Jan. 26——
Tuesday, Jan. 27—,
Two
weeks
Month
Year
1941
ago,
..——224.5
..—225.7
..—225.9
,
,_ii.._226.9
..
—227.3
217.8
.—.174.4
27——
High—Sept.
9
219.9
——
•
Low—Feb.
1942
17
171.6
High—Jan. 27
Low—Jan.
2
227.3
—T————.
—-,
—
this week
"Chicago district operations gained a point this week to 103%
capacity, while the Younstown rate rose two points to 97%. The
221.9
27—————u.
Dec.
Jan.
ago,
223.8
—
13——
Jan.
ago,
t—
Ey Wider War Output
Orders Exceed Pl aited ion And Shipments
of
St. Louis rate advanced
is
2Vz points to 87*/2%.
Pittsburgh production
unchanged at 97% eastern, Pennsylvania at 97 and Cleveland at
Loss of a point to 101% was recorded in the south Ohio river
while ingot output in the East declined five
points to 98%,
91.'
.—220.0
the
extent of the conversion of civilian irtdustry to a war-industry.
"Structural steel awards, on which details are
'being withheld
due to censorship, total 28,850 tons, compared with
29,000 tons a week
ago while new - structural
projects-are estimated at 21,100 tons
against 24,500 tons last week.
Reinforcing steel awards total 41,400
tons against 28,000 tons last week, with new
projects aggregating
6,200 tons against 33,100 tons a week ago.
•. •
;
"A
NAM Chairman Praises
"Tne ever-growing demand for steel
an
Appointment Of Nelson
President
Roosevelt's
Production
important
tion
Chief,
move
of
the
cording
to
Chairman
War
the "most
was
since the declara¬
war
emergency,"
Walter
of
as
the
D.
ac¬
Fuller,
Board
possible
In
address
an
of
the
before the
Advertising Club of New York on
14, Mr. Fuller said the Pres¬
Jan.
ident, by his action, "has created
a
most
vitally
needed
office
of
single authority" and has selected
"a
without peer in the busi¬
world."
Mr. Fuller added
man
ness
other steel prod¬
departments.
Furthermore, the likelihood that lease-lend re¬
quirements in the second quarter of 1942 will double the first quarter,
and continue for sometime to come, also points to additional
tight¬
ness in semi-finished steel
supplies.
The sharp increase in demand
for structural
of
new
that by delegating complete power
to Mr. Nelson the President has
shapes and concrete reinforcing bars for construction
plants and the rehabilitation of damaged equipment will
war
fall heavily upon the structural mills.
"Such
mills
and
factors
lead
other
some
the
to
units
>
!
;
conclusion
will
soon
that
face
bar, pipe
curtailment
and
;
sheet
in
varying
degrees.
For non-integrated mills, the situation is already grave.
Some have already suspended operations.
The heavy drain on semi¬
finished steel for allocations and high priority orders has been felt
by some non-integrated sheet and strip mills whose supply of ma¬
terial had to be cut despite their heavy bookings of
priority rated
material.
:
"Within
of
a
the
month ago
past
week steel
been
running
ahead
business exceeds production
and shipments, a condition which few could foresee before the actual
new
"assured the entire nation of ful¬
outbreak of
fillment
hundreds of metal product plants have been
OPM
our
aim
common
to
the
Axis
by
mass
pro¬
duction."
have
been
WPB
in
Chairman
accomplishments
course.
shelters
for
assistance
was
personal
encouragement
relationships
count"
in
"neither past'
the board's
'
■
the priority system -of
distributing material and equipment to war plants under the newlyorganized WPB seem likely at this time.
'
>
"An early report by the WPB on alleged priority
regulation
.
.
within the steel industry is not an impossibility.
Some
representatives of OPM visited various steel companies to
adherence to priority regulations.
The visits were before
violations
time ago
check
Pearl Harbor."
THE
"IRON
AGE"
COMPOSITE
PRICES
Finished Steel
to
-
High
1942, 2.30467c. a Lb.
Jan. 27,
:
Low
1939
$22.61
Sep
18
$20 61
—2.30467c.
1938
23.25
Jun
21
19.61
Rep 12
Jly
6
-2.30467c.
1937
23.25
.Mar
20.25
Feb
—2.30467c.
1936
19.74
Nov
18.73
weighted index based on steel bars, bpams,
tank plates, wire, rails, black pipe, hot and
eold-rolled. sheets and strip. These products
represent 78% of the United States output.
1935
18.84
Nov
17.83
Aug 11
May 14
1934
17.90
One
week
One
month
One
year
ago
ago
ago
—
A-
Iligh
__2.30467c.
.941
Sep
1940
2.304G7C.
:839
2.35367c.
May
16.90
Jan
16.90
Dec
13.56
Jan
1912
14.81
Jan
13.56
Dec
6
1931
15.90
Jan
14.79
Dec
15
1930
13.21
Jan
15.90
Dec
16
1929
18.71
May 14
18.21
Dec
17
2.26689c,
2.58414c.
Juu
2.27207c.
Oct
__2.58414C.
Mai-
2.32263c.
Jan
2.32263C.
Dec
2.07G42C.
Oct
'.934
2.15367c.
1,
Apr 24
1.95578c.
Oct
.933
1932 „_1.89190c.
28
May
Steel
2.05200c.
Mar
Jan
8
One
week
month
year
1.95757c.
Jan
2
One
3
1.75836c.
May
2
One
5
Jty
1.83901c.
Mar
1
Based
1931
1.99629C.
Jan
13-
1.83586c.
Pec
2.25488c.
Jan
7
1.97319c.
Dec
9
phia,
•
—2.31773C.
929
2.26493c.
May 28
Oct
on
tations
29
'930
27, 1942, $23.61
No.
to
1
week
One
ago
month
One
One
year
Used
on
and
phia,
at
23.61
Low
Jan
7
$19.17
21.83
Dec
30
16.04
Apr
22.50
Oct
3
14.08
May 10
15.00
Nov
22
11.00
Jun
7
Mar
30
12.92
Nov
10
____—
1937
21.92
1936
17.75
19c5
13.42
Dec
10
,10.33
Chicago, Philadel¬
and
Southern
iron
iron
1934
13.00
Mar 13
9.50
Buffalo,
at
Valley
Cincinnati
1933
T
Low
12.25
1941
$23.61
Mar 20
$23.45
1640
23.45
Dec 23
22.61
American
Iron
12.67
Jun
Aug
8
6.75
Jan
8.50
Jan
12
6.43
Jly
Jan
6
8.50
Dec
„
y
10
9
9
Apr 29
Sep 25
11.33
1932
'
Dec 21
Apr
1931
"v
High
quo¬
Pittsburgh, Philadel¬
Chicago.
23.45
for basic
iounary
The
scrap
iron at Valley furn¬
ago
ago
averages
and
aces
at
1938
$23.61
:
•
20.42
heavy mciung steel
consumers
1939
j
Gross Ton
19.17
ago_
#22.00
1940
a
$19.17
ago
;. High
29
Pig Iron
Jan.
Gross Ton
a
ago
1941
☆
Scrap
•t Jan. 27; 1942, $19.17
10
2.06492c.
^
3
Sep
Jan
1935
27
Apr
2.24107c.
Jan
16
1933
Low
2.30467c.
business, steel bookings have expanded, a development which is
significant in measuring the progress of the nation's war effort, and
PLANT
raid
priority
There
efforts to expedite war production. ' ■ 1'
-J
"No important changes in operations of
1937
U.S. DEFENSE
air
that
Nelson's warning to his staff that
or
1938
☆
told
getting into war goods production,
industry this week watched the new War Produc¬
able to change over to
Although there is almost no non-rated steel
goods production.
planning.to make
coasts
multiplied difficulties in
the metalworking
1933
of
war
massacre
This situation reflects in part the degree to which
war.
the
on
not.be granted for that purpose.1 Requests for railroad steel
requirements for 1942 include estimates of 1,632,394 tons of rails
and 2,122,530 tons of additional rolled steel.:
"Because political backbiting and gouging in the now abandoned
V
orders have
and the volume of
Manufacturers
use
will
tion Board closely for clues as to its
(
plates is expected to draw
increasing share of semi-finished material from
National Association of Manufac¬
turers.
;1
uct
appoint¬
ment of Donald M. Nelson
'
.
,
large sheet order for Russia has been allocated to various
producers.
area
Detroit operations rose six points to 100%.
Thursday, January 29, 1942
3
5
29
Jan.
2
1930
15.00
Feb
18
11.25
Dec
9
Jan
2
1929
17.58
Jan
29
14.08
Dec
3
and
Steel
Institute
Jan.
on
26
announced
that
telegraphic reports which it had received indicated that the
operating rate of steel companies having 91% of the steel capacity
of the industry will be 97.3% of
capacity for the week beginning
Jan. 26, compared with 97.7% one week
ago, 96.1% one month ago
and
or
97.1% one year ago.
This represents a decrease of 0.4 points
0.4% from the preceding week.
The operating rate for the week
beginning Jan. 26, 1942, is equivalent to 1,607,600 tons of steel ingots
castings, compared to 1,614,200 tons one week ago, 1.587,800 tons
month ago, and 1,567,100 tons one
year ago.
Weekly indicated
and
one
rates of steel operations since Jan.
1941—
Apr, 14—,
,.98.3%
6, 1941, follow:
Jly
Jan
6
97.2%
Apr
21
96.0%
Aug
Jan
13
98.5%
Apr
28
94.3%
Aug
Jan
20
96.5%
May
96.8%
Jan
27
23
4
11
97.1%
3 lay
5
12
Feb
3
96.9%
99.9%
97.1%
May
May
19
10
26
98.6%
Sep
Feb
17
94.6%
Jun
2
99.2%
Mar
3
Sep
97.5%
Jun
9
98.6 7r
Sep
99.2%
10
96.6%
96.3 %
17
97.0%
Nov
24
95.9%
96.2%
96.5%
,
Nov
95.6%
Aug 18
Aug 25
Sep
2
Feb
Nov
_97.6%
Dec
1
97.6%
97.5%
8
Dec
15
Dec
22
93.4%
96.1%
96.8%
15__
22
Dec
96.3%
96.9%
8
Dec
29
96.1%
:
97.9r/„
Feb
96.3%
bin
16
10
98.8%
Jun
23
99.9%
Oct
6
93.1%
Jan
17
99.4%
Jun
30
91.J
Oct
13
98.4%
Jan
12
Mar
24
99.8%
94.9%
Oct
20
97.8%
Jail
J9
—97.7%
31
99.2%
Jly
Jly
7
Mar
14
95.2%
Oct
27
99.9%
Jail
26„
—97.3%
Apr
Time's short...
24
Mar
Mar
7
99.3%
Jly
21
96.0%
Nov
3
98.2%
and
Defense Plants can't wait!
THROUGHOUT national defensebreadththe
of
Long Island the length and is
pared. We had facilities all ready to
on
march. In
no
small measure, Long
them. Few
Island
utilities which furnish
Lighting System's long-time policy of being
prepared to meet
ever
tricity and
gas
new
needs for elec¬
cannot build
electricity and
Established
multiplying defense projects,
for thousands of
they
seem
course,
to have
NEW
YORK
gone up.
are
night
Long Island, of
strategic and they provide
among
adequate, and
tricity and
available,
see
workers. Over
gas.
supply of elec¬
If that had not been promptly
many
of the defense plants
we
would have had to look elsewhere.
Long Island Lighting System
Chicago
BLDG.
YORK
Detroit
Geneva, Switzerland
try calls for
gas
more power
Pittsburgh
Mexico, D.
Mexico
it is there
more
...
is available too for both domestic and
industrial
uses.
Long Island is
That is
a
one
reason
why
STOCKS
good place for industry to
policy
which
the, Long
System management
tained
...
...
to grow
to look
ahead in
Island Lighting
always
has
•
BOKW
COMMODITIES-
-■
main¬
soundly with Long Island
ahead, plan ahead and build
order
to
keep
pace
with the
MEMBERS
was
pre¬
important territory it
serves.
Long Island—''Keep 'Em Flying!"
New
York
Stock Exchange
York
Curb
N.
*
Y.
Queens Borough Gas & Electric Company
Kings County Lighting Company
Long Beach Gas Company, Inc.
Lighting Company
i-
,
Coffee & Sugar Exchange, Inc.
•
»V»< W*t *«»*«■»i
York
Produce
Y.
York
New
Orleans
Cotton
Exchange
Cotton
Exchange
of
Exchange
Boston
Detroit
Cotton Exchange
Chicago Mercantile Exchange
Liverpool
New
Chicago Stock
Exchange
Wool Associates of N.
OF:
Chicago Board
Exchange Inc.
New York Cocoa Exchange, Inc.
Long Island Lighting Company
Nassau & Suffolk
Exchange
Commodity
New
EXCHANGE
SQUARE, NEW
Today, when the Island's aviation indus¬
New
Let's Go,
1856
locate. This instant availability reflects the
these advantages, is
reserve,
COTTON
HANOVER
generating station.
homes
outstanding advantages.
Important,
an
more
offered ideal locations to them. Our
communities
many
new
posts,
army
97.8%-
modern electric
a
Boston
panding industries, growing
5—-—96.4%
II. IIENTZ & CO.
It takes, actually, about
to complete
1942—
96.9%
gas
plants and equip them, with
or a year.
two years
Sep 29
serve
people stop and realize it, but the
their intricate machinery, in a day, or a
month,
has made this possible.
All around us, we now see new and ex¬
99.0%
Cotton
Trade
Stock Exchange
Slock
Exchange
Winnipeg Grain Exchange
Canadian Commodity Exchange,
Association
Inc.
Volume 155
"Steel" of
kets,
-
-
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4039
Cleveland, in its
Jan. 26 stated:
summary
tion and concentration
■
of
Due to the announced
policy of shifting industry in general over
to an all-out war effort as quickly as possible companies engaged on
purely commercial work are pushing harder than ever for rearmament work. In the meantime deliveries of all major steel products
are becoming tighter.
Even in other products than plates and bars,
which are most in demand, most mills offer little hope of shipping
much tonnage in the lower priority brackets or in non-rated tonnage.
Many producers make no promises of delivery in spite .of heavy
pressure. Expected increase in freight rates is a factor in this pressure.
Placing of 402 cargo ships with builders on the Pacific Coast
will require a heavy tonnage of plates and
shapes, which is expected
to be allocated among mills in that area.
The ships have been
awarded to yards in California, Oregon and Washington.
Vrv
Scrap scarcity has not been relieved sufficiently to allow re¬
sumption of steel production in idle open hearths in condition to
operate. Except in a few cases steel plants are operating on a narrow
margin of shipments from day to day with no assurance of continu¬
ance. Numerous
campaigns are under way in cities and rural districts
looking to discovery and utilization of obsolescent material and some
method is being sought to obtain the
potential scrap existing in
automobile wrecking yards. The latter is considered the most prom¬
ising source of large tonnage. Collection and preparation had been
interrupted by snow and cold but the current generally mild weathe©
»
has aided collectors for the most
part.
to
prevent
upgrading
constitute
Inspectors detailed by OPM
threat to this form of price
a
evasion but efficacy of their efforts remains to be
proven.
Slightly
caused
97%.
better
scrap
supply
of 1 point in
advance
an
at several steelmaking centers
the national production rate, to
point to
90%, Cleveland 4^ points to 94Vz, Detroit 6 points to 92
Youngstown 2 points to 86. New England dropped 15 points to
85%, Wheeling 1 point to 88, Cincinnati
points to 88 and St.
and
Previous rates
maintained at Pittsburgh
were
were
to
planning
;.
deprive
its
people
have
already done that.
the
taxes
people
-
is
What
to
save
from
wasting their in¬
in driving up prices
by
bidding for goods that
comes
futile
not
are
for
are
there.
If
the
tax
col-
lector.does not take the
money,
increased
prices; will — in
injurious way" t. * :
more
The
<
rests
job
of
curbing
ment,
according
who at the
Clark,
time makes the
same
following^-suggestions
D. W. Bell
Sugar
Defense Bond Sales Must
Exceed Half-Billion
for
the
value,
contrasted with 288,813 tons in
the corresponding period of
1910,
increase
an
ceived
but
don't
scarce
hoard
waste
Take
that
lowed
with
worker
or
some
Peru's
27,439 tons
1941-42
at
port,
some
than
you
getting
If
Co.
refractory brick, whether containing magnesium or any combination.
Automobile builders assembled 79,930 units last
week, an increase
of 4,905 over 75,025 in the previous week.
This compares with
121,948-in the corresponding week last year. The industry is close
to the quota set for January production,
'
Price composites continue as for months
past;' held' steady by
government
finished
regulations.
steel
Finished steel composite is $56.73; semi¬
steelmaking pig iron $23.05; steelmaking scrap
$36;
$19.17,
an
Sees Mien Heeded
when
cause
reduce
we
reduced, be¬
are
spending, it is
taxing
to
necesary
to reach those who do most of
the
A
warning that inflation is in¬
evitable unless prompt and vigor¬
action is taken to restrain it
spending.
"This
sounds
income
is
if
the
gov¬
have
had
too
little
for
long while, and it may be
turn
to
go
without
a
things
in
advance
and
buy
Members
to
pay
some
your
defense
War, John M. Clark,. Professor of
at
Columbia
.
than
we
did
much
knowledge
our
so
Have
-
confidence
in
do
its
real
its
for
best
make
to
injustices
resulting
regulations.
favors
right
the
ers'
far
if
better
we
of
25
record."
He
But
unless
don't
you
ask
really
dicted that
this
will
is
He pre¬
be done
but
only after the people fully realize
64th of
series
a
of popular,
Co.
&
1000
Exchange.
Exchange
Exchange
Stock
New York
Curb
New York Telephone:
CAnal 6-7162
Calvert 6200
Teletype BA 395
fac¬
tual, 10-cent pamphlets published
by
the
30
Public
Affairs
Rockefeller
Symbol of
Commit¬
Plaza,
New
Seventy-Five Years
York City.
ATLANTIC, GULF & PACIFIC CO.
Armour
is
to
You
and Company's
is
Diamond
our
Jubilee
money
if it
Engineers and Contractors
were
keenly
are
for
for
not
The result
our
a
pro¬
of
of that
market
policy is the
provide for
we
livestock.
can
can
DREDGING, FILLING,
buy¬
At
LAND RECLAMATION
By
every
CANALS, RIVERS AND HARBORS
the
best
back
prices that
can
be
to
and
meat
Some
commodities
goes
.
15
Park
NEW
Row
Scanlan
YORK
Building
HOUSTON,
Cable
Address:
"Dredging" New York
TEXAS
That is
not
true
products.
For
this company has returned
livestock
products.
in
sold
.
of
dollar,
the
world's
corporations.
We
provide people with the fine meats
they want
when and where they
want
.
them.
But
the
v-
major
is
held
"stake"
by
in
this
the
stock
raiser, for he receives the
share of Armour income.
lion's
company
That Armour policy tff
coopera¬
with the livestock
industry is
tion
years
to
now
75 years old
and still
sound, still healthy, still growing.
.
.
.
the
raiser
three-fourths of
_personal, Jn-;
.
of Armour and
Company's
credit policies that will trim the
...
bought
are
cheaply as raw materials.
dearly as finished products.
volume of money demand to fit
the supply of goods.
The
by-products
the livestock raiser.
one
service
..
or¬
attend
have built
great
far the greatest share of
dollar we take in from the
sale of
issue.
by financial and
With the balance of that
we
A daily cash market.
goods
them if other prices keep getting
out of line. His actions need to
,' JFBP&on .of jbe
that it
reality
policy of full
aware
have become
ducers.
kind
are
up
we
never
cooperation with the livestock
a
important commodi¬
ties, but he cannot hold on to
be backed
But
paid.
more
looking
An administrator
We are naturally proud of this
long record of progress.
would
we
to the most
-.
securities
higher than theirs.
Baltimore Telephone:
1942
further
spite of all the price-ceiling
1
individual
on
savings
75th consecutive year in business.
goods looking for
buyers, inflation will happen in
...
of
BALTIMORE
years
than
ders the administrator
:
limit
our
holdings
W,est Virginia Representative} Union National Bank Bldg.
Clarksburg, W. Va.
of Service
in¬
to make
are
there is much
than there
''
do
CALVERT AND REDWOOD STREETS
any
from
declared:
"If
should
Surety Guaranteed Bonds
readiness of the government to
ago, we shall have to make better
have
people
better than the British be¬
cause
much
at
Active Market In Local Securities
If you are an employer, ab¬
sorb all the increased costs you
can. Most employers are doing
Univer¬
about the mechanics
of
American
much
dollars,
pointing out that
Listed and Unlisted Stocks and Bonds
bonds
This
sity, author of the pamphlet, as¬
serts
that
although "we know
use
billion
time
Year.
Pointing out that the movement
of
prices
since
1939
parallels
closely that of the First World
.
the
and-10
same
Maryland County and Municipal Bonds
taxes;
New York.
.
nine
the
Government and Federal Land Bank Bonds
few
is contained in the Public Affairs
flation
national income would be between
your
besides.
it.
Baltimore
Associate Members
a
would like. Save up
you
Pamphlet, "How to Check Infla¬
tion," published on Jan. 23 by the
Public Affairs Committee,
Inc.,
more
needed, Mr. Bell cited England's
experience
in the war savings
Members New York Stock
ous
Economics
bil¬
movement.
Established
medium
your taxes hurt, re¬
member there are a lot of people
tee,
as
a
Defense
not save at the rate which will be
Baker, Watts
"How to Check Inflation" is the
tax has been
of
im¬
need them.
come
half
even
sales
the country's need.
of whom have less
and no chance of
your
who
dead-burned magnesite, at the level prevailing the
past three years
and will follow this by an order
covering other grades and basic
in
come
more.
ments worked out
Meanwhile trading is slow in the face of strong
demand, both be¬
cause of broken stocks and lack of clear
knowledge of provisions of
the price-fixing order.
OPA has established maximum price on maintenance grades of
come
ex¬
according to Lamborn &
sized, and
discussed.
to
dollars
be taken from people like your¬
self,
Regulation of the steel warehouse trade by OPA has been met
by numerous objections on the part of the industry. Delicate adjust¬
ference in which the points at issue can be
explained and
lion
personal market, but the goods
you expect to buy. will mostly
95%; Buffalo, 79V2% and Birmingham, 90%.
by years of experience have been thrown out of
gear and Administrator Henderson has been asked to permit a con¬
ware
the balance is available for
won't be enough real goods, and
it is better to gain a few real
dollars than a lot of rubber
from your boss or from
months
were
sugar crop is
433,000 long tons.
Approximately 100,000 tons is
used for home consumption and
try to push your advan¬
tage too hard. If you do, there
may
the
for
States
estimated
years,
don't
money
1941
h
shipped.
a
farmer who is "getting a break"
for the first time in
during the eleven
by the United Kingdom
32,628 tons; while to the
United
000 homes.
a
to
Washington Board of Trade, Dan¬
iel W. Bell,
Under-Secretary of
the
Treasury, said that in the
the largest of
are
In the 1940 period Chile with
133,314 tons headed the list, fol¬
the
savings grow important
when they are made in 30,000,are
of
accounting
little
The
New
address
He said that England
destined, in its
second year of operation
134,416
tons.
produced the equivalent of $2,400,Chile follows with 118,945
tons,
000,000, accounting for 10% of the
Bolivia 37,491; Uruguay
16,628;
British national income.
Mr. Bell
Finland 13,180; Russia 8,456; and
added that 10% of this
country's
6,174 tons to other countries.
months
materials,
them.
Remember
you
1941
sugar exports
collection—newspapers, for in¬
If
Co.,
of the countries to which Peru's
operate
stance.
&
or
- re¬
recent
a
Savings Bonds monthly will not
be
enough, since war expendi¬
will
be
mounting >' to
a
any similar period on record. The tures
monthly rate of three, four, and
previous high was established in
ultimately
five
billion
dollars.
1933 when the January-November
Regarding reports that a country
shipments totaled 303,092 tons. at war, with war-time taxes and
The firm's announcement added: pther unaccustomed burdens, can-,,
chances with the rest. Co¬
in programs of waste
your
Lamborn
tons,
advices
In
York. The exports for the eleven
need of under¬
no
other
or
by
to
The United States tops the list
nourishment,
don't
46,480
16.1%,- according
study
healthy
and
of
Says Monthly
,
as
If you are a
housewife,
the requirements of a
foods
Peru during
by
the first eleven months of 1941 to¬
taled 335,293 long tons, raw
average citizen:
diet. There is
exports
months of
govern¬
to". Dr.
,
a
inflation
primarily with the
Peruvian Sugar Exports
of
goods, but that is not the case.
The
requirements of defense
ones.
Chicago increased 1 point to 102%, Eastern Pennsylvania 1
Louis 5 points to 76.
taxes
v
production on war work, accompanied by
sharper appraisal of essential civilian requirements.
: -
•
ernment
of the iron and steel mar¬
;v.j
Transition-from peactime production to manufacture of war
material is gaining speed and is reflected in increasing demand for
steel of all descriptions for the latter purpose. For several weeks,
rince about the turn of the-year,-general demand was light but as
more plants have obtained war contracts and have retooled for new
lines orders with high priority are increasing rapidly.
-y
Momentum of war buying is so heavy that reorganization, of
government control agencies under the War Production Board has
proceeded thus far without effect on steel demand, which has re¬
flected no hesitation because of expected changes.- Many observers
believe there will be no marked change in the general organization
of the Iron and Steel Branch and that the principal influence of the
new plan will be an acceleration of the trend toward broader allocaon
429
from the
approximately
every dollar taken
sale of
meat
and
by¬
ARMOUR
AND
COMPANY
430
THE COMMERCIAL & FINANCIAL CHRONICLE
Lumber Movement
Fertilizer Assn. Prise Index Gains Hailed
The rising trend in the general level of wholesale commodity
prices was halted last week, according to the wholesale price index
compiled by The National Fertilizer Association, which was made
public
Jan. 26. In the week ended Jan. 24, 1942, this index fell off
to 121.8 from 122.0 in the
preceding week.
A month ago the index
on
stood at 119.2 and
a
year ago
at 100.6, based on the 1935-1939 average
v
;
Revenue
>
Week Ended Jan. 17, 1942
production during the
17, 1942, was 8%
the previous week,,
shipments were 7% greater, new
business
29% greater, according
week ended Jan.
Loading of revenue freight for the week ended Jan. 17, totaled'-,
811,196 cars, the Association of American Railroads announced on
greater than
Jan.
47
were
week there
advances
12
declines;
the second
in
preceding
cars
WEEKLY
COMMODITY
WHOLESALE
PRICE
the
Latest
Group
Preceeding Month
Year
Week
Bears to the
GROUP
Total Index
Ago
Ago
Jan. 24,
'
Week
above
Jan. 17,
Dec. 20,
Jan. 25,
'
new
but
•'
corresponding week in 1941.
and
in
1942
1942
1941
1941
119.7
116.4
130.8
126.2
75.0
158.4
156.1
156.0
130.5
130.4
123.6 >
Cotton
185.1
179.4
163.5
.;96.4~
121.6
121.5
115.0
87.4
121.3
122.6
117.5
96.1
113.0
113.0
112.9
101.5
ago.
127.7
127.2
126.8
110.0
Oils
Cottonseed
Farm
Oil
Products
;£[
The ratio
of
the
orders
to
Livestock
17.3
•'
Fuels
10.8
Miscellaneous
8.2
Commodities
c.
Textiles
150.2
149.0
140.9
112.4
7.1
Metals
104.0
104.0
104.0
103.1
6.1
Building Materials
132.0
131.8
131.6
Chemicals
120.1
120.1
112.0
117.4
115.5
114.0
119.7
104.0
Jan. 17,
on
a
year
Unfilled orders were 25%
than a year ago; gross
cars
below the
,
1941.
loading amounted to 12,896 cars an increase of 1,078
preceding week and an increase of 388 cars above
cars
the
the
All districts reported increases compared with the
corresponding
106.0
114.0
42%
1942, compared with 32%
103.9
117.4
was
1,661
117.8
1.3
stocks
'
corresponding week in 1941.
Coke loading amounted to 14,877 cars, an increase of 680 cars
above the preceding week, and an increase of
1,360 cars above the
corresponding week in 1941.
1
'
gross
'
.
corresponding week in
above
unfilled
of
;Ore
74.7
95.3
•
.
,
8%
Supply and Demand Comparisons
.
alone,
cars, a'
preceding week, but an increase
of 1,067 cars above the corresponding week in 1941.
Forest products loading totaled 43,993 cars, an increase of
8,962
cars aboye the preceding week* and an increase of
5,507 cars above
greater
and
r
•
Live stock loading amounted to 13,825 cars, a decrease of
2,114'
below the preceding week, but an increase of 1,275 cars above
decrease
91.5
131.8
Fats
above the!
the corresponding week in 1941.
In the Western Districts
loading of live stock for the week of Jan. 17 totaled 10,279
1940
were
1941.
cars
orders
37 % above pro¬
was
duction, and shipments
above production.
cars
alone, grain and grain products loading for the week of Jan. 17
totaled 33,866 cars, an increase of 12,009 cars above the
preceding
week, and an increase of 14,989 cars above the corresponding week
9%
new
qf 27*140
1
Grain and grain products loading totaled 49,488 cars, an increase'
of 13,646 cars above the preceding week, and an increase of
18,193"
cars above the corresponding week in 1941.
In the Western Districts"
the
was
a decrease of 1,094 cars below the
corresponding week in 1941.
Coal loading amounted to 174,142 cars, an increase of 7,932 cars*
'
above the preceding week,: and an increase
For the 2 weeks of 1942,
118.5
Foods
23.0
for
1942
the orders of the
business
Grains
25.3
of
or
or
revenue freight for the week of Jan. 17 increased;
74,024 ears or 10% above the preceding week.
Miscellaneous freight 'loading totaled 355,287 ears, an increase
of 36,996 cars above the preceding week, and an increase of
54,930*;
cars above
the corresponding week in 1941.
Loading of merchandise less •; than carload lot freight totaled'
146,688 cars, an increase of 6,844 cars above the preceding week,*
corresponding weeks
of
shipments were 9% below
period.
%
Each
production
weeks
shipments,
8%
lOOP
=
two
1940;
INDEX
Compiled by The National Fertilizer Association
[1935-1939
Reported
first
increase
above the corresponding week in 1941 was
15.3%, and above the same week in 1940 was 164,814
25.5%,
.'v
■/v
cars
Loading of
p"
Year-to-date Comparisons
below
advances and 3 declines.
45
were
and
The
22.
107,699
The slight drop in the all-commodity index last week, was due Manufacturers
Association
from,
primarily to declining prices for foodstuffs and some farm products. regional associations covering the
The upward movement in the food price index was halted as declines operations of representative hard¬
wood and softwood mills.
for butter, eggs,
Ship¬
prunes, and meats more than offset advances in 5
of the less important items included in the group; the net result was ments were 7% above production;
a moderate recession
in the food group average.
Livestock quota¬ new orders 49% above production,
tions were lower, but advances in cotton and most grains were more compared with the corresponding
than sufficient to raise the farm product price index fractionally. week of 1941, production was 4%
Continued price advances for raw cotton, cotton yarns, and certain less, shipments 3% Jess, and new
cotton goods took the textile average to a new high level,
This group business 16% greater. The indus¬
index is now well above the average for 1929, the previous peak try stood at 155% of the average
year.
Linseed oil and white lead prices were higher causing a small of production in the corresponding
increase in the building material price index.
The only other prin¬ week of 1935-39 and 150% of
cipal group average to change last week was that representing the average 1935-39 shipments in the
prices of miscellaneous commodities, which advanced due to another same week.
there
Freight Gar Loadings During Week
Ended Jan. 17 Amounted to 811,196 Cars
Lumber
to reports to the National Lumber
upturn in cattle feed prices.
* - ' r",*-'•»"> — •
- Although the all-commodity price index fell off during the week,
price advances outnumbered declines 27 to 15; in the preceding week
Thursday, January 29, 1942
.3
Fertilizer
.3
and
Drugs
Fertilizers
Farm
.3
100.0
All
"Indexes
on
Materials
Machinery
Groups
1926-28
103.4
Jan.
were:
24,
103.4
103.4
99.7
121.8
Combined
base
:\T.
122.0
119.2
100.6
1942, 94.9;
Jan.
1941,78.4.
17,
1942,
95.0;
Jan.
25,
were
6% less.
Softwoods
for
the
current
Week of
ended Jan. 17, 1942, for the corre¬
sponding week a year ago, and
for the previous week, follows in
1942
Guarantyprust Company of Nqw York
Production
140 BROADWAY
Fifth Ave. at 44th
LONDON
St.
Madison
-
VICHY
Ave.
PARIS
at
60th
St.
461
461
J
r
211,952
Orders
BRUSSELS
221,341
•:>
272,344
RESOURCES
Cash
243,997
U.
S.
Government
total
1942 Week
Public
'
;
Obligations
on
Obligations
Estate
Bonds
550,865,729.43
Acceptances
and
on
Loan
brought
the
Banks'
10,515— 99%
300.714—1493,
and
the
Government
5,473,967.43
6,788,221.57
Mortgages
■
—
to
nearly $17,410,000, James Twohy,
15.234—-143%
Governor
of
the
Federal
Home
Loan Bank System, announced
j-""
Jan.
24.
In
Buildings
on
Home
for
Total Resources
Loan
the
Deposits
Checks Outstanding
DISCOUNT CORPORATION
same period last
year.
total, $876,788 went to
the Reconstruction Finance Cor¬
the
poration—which
the
Banks
tion
OF NEW YORK
to
Banks'
as Endorser on Acceptances and
Foreign Bills
Foreign Funds Borrowed
Some Foreign Branches
62,404,949.31
926,492.29
90,000,000.00
44,002.44
1,755,126.24
;;,
,
$2,000,000.00
V
Undivided Profits.........
Reserve for Premium,
279,470,856.52
$2,558,587,698.49
thrift
fiduciary
This
powers,
Statement
Branches
as
of
at
to
$16,504,385.75 in the above Statement are pledged to qualify for
public monies as required by law, and for other purposes.
secure
include*
the
December
26,
resources
1941,
have
paid
in¬
their
$3,928,308, and
the
Government $13,481,182 in divi¬
dends. Distribution according to
To Member
District Bank—
Boston
New
Institutions
1,598,498.70 $ 5,598,498.70
Discount, Taxes and"
York
479,142
257,871
Winston-Salem
320,613
Cincinnati
$1,032,480
914,521
320,877
*
531,980
1,969,933
1,224,232
,
880,071
-
1,946,778
854,526
.
2,016,035
233,465
930,109
169,848
814,477
113,261
533.261
86,184
528,591
201,586
750.690
Los
Angeles
$3,928,308 $13,481,182
;
When
552,189.73
Payable and Due to Banks and >
To Govt.
$298,960
l_
Portland
the
established,
Bank
the
System was
Government
subscribed
42,930,784.55
16,545,718.77
Security Contracts
$124,741,000 for capi¬
tal stock, with additional stock
to be purchased by each mem¬
ber
•
Unearned Discount
855.47
%
19,347.03
$65,647,394.25
liabilities of the English and Freneh
Belgian Branch as of October 31, 1941.
Member Federal Deposit Insurance Corporation
home-financing
—
Topeka
and
and
and
stitutions
institution.
Provision
Government's stock
so
that
the Banks eventually would
owned
The
by
their
Government
no pay¬
ment has been made since
while members' stock
1937,
now
totals
increase of
more
$4,000,000 in the last
year.
$48,822,475,
than
be
membership.
has paid its
subscription in full and
OFFICES: FIFTY-EIGHT PINE STREET
was
made for gradual retirement of
the
carried
in
Little Rock
2,000,000.00
Contingencies
Sundry Credits
Securities
propor¬
establishment
Indianapolis
Chicago
$65,647,394.25
:'
Customers
19,470,856.52
Liabilities
in
Bank districts follows:
LIABILITIES
Loans
170,000,000.00
Total Capital Funds
their
Total
9,874,333.76
S.
to
ownership of the
capital stock.
184,107.12
Hand
,;
Surplus
2,279,116,84L97
Profits
on
-
Capital
.
Capital
Surplus Fund
Cash in Banks and
companies,
Des Moines
of
U.
members
;..
2,700,000.00
Taxes, etc.
Total
.....
152,550.00
Miscellaneous Accounts Payable, Accrued
Undivided
Fuliy Guaranteed, and Security Com
tracts, at Market..........
94,097.00
Dividend Payable January 2, 1942
Items in Transit with Foreign Branches and Net
Difference
in
Balances
Between
Various
Different Statement Dates
the
$333,711
Pittsburgh
Liability
to
from
and
—
1932,
the
Banks —■
which provide a home mortgage
credit reservoir for some 3,850
$ 1,259,209.14
Sundry Debits
5,473,967.43
ac¬
October,
ASSETS
Interest Receivable Accrued
4,076,176.93
year
their
Since
of Condition December 31,1941
and
$9,550,144.36
Offices Due
Statement
United States Government Securities, Direct
$2,259,895,401.49
Acceptances
Less: Own Acceptances
Held for Investment
last
savings and loan as¬
sociations,
cooperative
banks,
mutual savings banks and in¬
surance
■
Acceptances Discounted
16,917,584.52
—
dividends
the
over
Of
Treasury
$2,558,587,698.49
$2,242,977,816.97
Banks,
six-month
member
1,755,325.57
LIABILITIES
known
period end¬
ing Dec. 31, 1941, totaled $1,210,499, an increase of $78,213
in
10,930,820.19
1,332,155.47
Other Real Estate
this
Paid semi-annually by 10 and
annually by two of the Federal
2,546,324,722.83
Bank
making
quired the Government's stock
22,032,385.91
:
Accrued Interest and Accounts Receivable
Real
Home
7,800,000.00
Loans and Bills Purchased
Credits Granted
217,277—108 %
1,018,486,210.88
49,327,006.47
Securities
Federal
earnings
tutions
;
10,671—100%
883,795,875.57*
Stock of the Federal Reserve Bank
Other Securities and
90
201,281—100%
Orders
$
'
.
,
a
stock held by their member insti¬
Shipments
Hand, in Federal Reserve Bank, and
on
-
,
Banks at the end of 1941
Production
Due from Banks and Bankers-
,
following table is
regional
Hardwoods
383
1,907,548
the Board said:
213,818
1942 Week
646,382
2,029,303
i
Payment of dividends by the 12
Condensed Statement of Condition, December 31, 1941
Mills
703,497
2,224,902
—:
17
Heme Loan Bank Dividends
195,481
235,315
Softwoods
668,241
summary of the freight carloadings
for the separate railroads and systems for the week ended
Jan. 17,
466
227,792
__
__
592,925
711,635
Previous
315,948
Shipments
January
•Revised,
Week Wk. (rev.)
Week
'/
Willi' "iILL—'''
1940
614,171
737,172
811,196
....
Total
and Hardwoods
1941
1941
—*676,534
January -:3^
of
The
1942
<
1942
Week of January 10
week
Week
Softwoods
'
i
Hardwoods
and
Record
weeks in 1941 and 1940.
thousand board feet:
.
,
stocks
an
Volume 155
-THE COMMERCIAL &
Number 4039
1942.'
During this vperiod 112 roads showed increases
pared with the corresponding week last year.--?
REVENUE
FREIGHT
LOADED
AND
RECEIVED
FROM
when ^com¬
1
—
Total Revenue
i
:
—1942:-;.
•
Arbor
Aroostook;.
Bangor &
Boston
-
Maine
&
.
Central
>
;
Delaware,
Detroit
Toledo
&
Toledo
Ji
12
—
Western
59
2,149
,
...
6,704
4,746
9,158
'"
188
3,006
2,828
389
342
>
253
•
13,052 —.
14.406
...
Uiand. Trunk Western
Lehigh & Hudson River
Lehigh & New England..
>
5,445
—
^
V.o—
'—;
178
291
11,409
134
>>■
,,2,604
63
2,207
4,777
16,021
• •
;
3,645
13,607
9,122
2,225
122 —■
——1,678
1,428
Lehigh Valley
>
9,482 9,519 ^
9,082 — 9,742
7,731
Maine Central
V—
3,363
-3,057
3,033
3,514
2,775
Monongahela
6,149
4,360
4,770
449
•
283
Montour
r_;
2,358
1,606
2,039
25
32
Mew
York
Central Lines...
48,500
43,629
38,659
51,906
44.030
N, Y., N. H, & Hartford..
12,719
10,300
9,632
New YorkrOntaria-fe Western-—*—.9.'1-1*>—■— 9837W, 1.036,,2,364,.
2,148
N-Y.^Chicago k-St;
;'0,557--,- 5;418- — 5,027—-14,118
1^137
N. Y., Susquehanna & Western.#
532 —356
~
344 — 1,443..— 1,789
Plttsburgn & Lake Erie
......—— 8,036
7,355
6,352
> 7,529
6,420
PereT Marquette.—...
—;
5,440
6,329
5,662
7,139
5,994
Pittsburgh & Shawmut
587
557 ,
499
56
,
26
Pittsburgh, Shawmut & North,.;
v>
408
440.;. .
441
249
289
Pittsburgh 6i West Virginia..,
—: —. 909
756
904
2,630
1.821
Rutland
540
549 —1 539
1,038
1,0,8
Waoasli.*
6.069
5,530 ——5,190
11.903' .->10.1931,543
1,837
....
........
Coast
City
139
2,823
2,125
1,528
Federal Reserve
1,596
1,625
2,609
2,165
Gulf.*..
announced the
295
163
185
1,148
919
3,128
&
&
Wichita
2,884
2,034
1,570
1,907
1,767
as a
396
364
1,180
958
595
774
400
182
204
122
122
416
356
the unexpired portion of the term
ending Dec. 31,1944, and his desig¬
I.
Arkansas
Lines
&
4,031
3,648
4,067
2,836
14,921
13,845
12,905
10,414
97
67
200
132
9,414
7,545
6,947
6,778
4,935
3,230
X 2,654
16,951
Pacific
120
—
.
•
and
3,973
2,735
4.270
3,121
H.
4,113
4,330
126
116
175
48
57
Curtiss, who had served contin¬
uously as Chairman of the Federal
29
16
44
45
374
Reserve Bank of Boston since the
60,117
51,449
46,223
49,350
39,048
...
W..H
.
J—
organization of the Reserve Sys¬
1914. Last August Mr. Cur¬
tem in
asked
be
to
relieved
main
•Note—Previous year's figures
revisecf.
until
the
expiration
term at the end of the year.
.
.....
....
<•
STATEMENT
>
OF
TIIE
....
.....
•
Wheeling &
...
.......
Erie
Lake
.a-.«
.
.
.
.
> 4,912...—— 3,893 V >,3.469
—
Total
4,677
; 3,742
144,219-211,129
176.011
173,537
156,654
607
581
370
1,039
1,082
38,553
33,139
29,009
21,953
18,299
3,074
2,752
288
2,067
295
1,396
3
FirstsNatiomLBank
1,887
4
AT
— Allegheny
Baltimore
v
Ohio
&
Lake
Bessemer &
Buffalo Creek & Gauley
Cambria
&
Indiana
Central R.R.
of
New
1,908
&
•
60
299
275
153—
180;
——13
38
33
49
—:
2,917
1,782
55.224
23,439
2.859
1,491
41,736
19,498
1,780
656
1,114
509
970
78,849
68,144
59 930
16,408
15,880
19.682
19.530
14.278
17,236
3,801
3,646
795
...
Seashore
Lines.......
System
Reading Co
Union
(Pittsburgh)
Western
12,813
64
Maryland
Total....
>,
3.425
3,320
9,379
RESOURCES
Cash and Due from Banks
155,724
136,962
136,317
110,569
25,665
21,832
22,648
10,227
9,440
$ 45,564.833.39
U. S. Government
Obligations, direct
fully guaranteed
and
7,427
174,653
-
AS AT DECEMBER 31, 1941
11
15,636
475
4,042
Island
Penn-Reading
Pennsylvania
9
6,164
551
293
130
Pennsylvania
Valley
1,549
6.913
607
—
1,923
7,593
—
Jersey
-
Cumberland
Long
332
—
Cornwall
Ligonier
PITTSBURGH, PA.
District—
Akron, Canton & Youngstown........
50,844,340.54
State, County and Municipal Securities.
3,449,838.49
.
Other Bonds and Investments.
19,722,765.14
Loans and Discounts.
24,591,364.04
District-
Pocahontas
Chesapeake &
Ohio
21,258
20,536
19,449
5,893
4,534
4,144
4,297
2,052
1,971
Total
51,457
46,512
46,394
18,172
.......
.
6,192
Virginian
17,603
NoriolK
Western
&
......
Bank
Buildings and Other Real Estate.
Accrued Income and
District-
Southern
Alabama.
Atl.
P.—W.
W.
&
& Northern—...
Tennessee
Atlanta,
of
R.R.
Ala
Atlantic
Line
Coast
of
744
690
1,980
516
1,395
11,310
9.315
7,366
3,823
3,683
396
1.772
1.668
1,404
4,307
422
4'9
1,677
4,527
262
335
180
173
Greenville....
—
Florida East Coast.—...
Midland
Gainsville
Georgia
Central
Norfolk
685
3,161
22 294
21,955
15,374
23,928 145
132
23,676
137
119
8,429
449
Fred.
&
3,752
3.065
Seaboard
Air
Southern
System
Central
V
3.017
1,178
-
6.852
1.215
Line
1,061
983
394
390
1,692
331
291
8.010
5 608
1,343
1.130
10,162
9,983
8 596
7,025
22,687
19,802
21,736
17,725
575
492
441
862
601
126
132
157
868
,
.
3,117,029.38
(^nd'Apr""!.!^2)
•
•
•
240,000.00
•
Deposits
110 918
100,765
98,756
Accrued
138,996,463.66
Expenses and Deferred Credits.
438,562.86
.
82,845
..
>
Com'l. Letters of Credit, Acceptances, etc.
211,526.33
$153,603,582.23
District—
Northwestern
4,600,000.00
.4.;..
792
......
Total
.
Reserve for Dividends
6.239
24,432
—
Southbound
Winston-Salem
Surplus.
Undivided Profits and Reserves
1.543
480
—.
-126.133
Tennessee
6,000,000.00
12,202
:
821
506
——
Potomac...—.—
.$
395
2,436
215
194
3,197
...
Northern—.....
Capital
561
3,393
L
Southern
Richmond
873
218
2.946
.
St.
Si
:
78
1,861
— 26,633
Savannah
Chattanooga
Piedmont
'99
2,385
4,326
Mississippi Central
Nashville.
24
30,390
System
&
1.21C
1,034
3,968
Nashville..
&
Dublin
Macon,
1,080
913
>29
1,370
1,108
443 —" 408 >
......
Georgia & Florida
Mobile & Ohio..
Illinois
48C
LIABILITIES
255
769
$153,603,582.23
2,869
365
179
"35
——
......
3,047
200
I
1,433
—.—
—
Gulf.
Louisville
4,053 >
—
Southern—...—
&
137.12
6,624
3,596
250,426.73
..,
,
Overdrafts
1,188
11.940
....—
Prepaid Items.
4,179,876.78
.,
1,634
663
Clinchfield-i-...-*——..
Durham
196
Western Carolina——
&
Columbus &
236
888
Georgia
Charleston
231
715
Birmingham & Coast.......
Central
314
405
DIRECTORS
North Western
Great Western
18,133
15,012
13 268
14,822
11,661
Chicago
3,077
2.400
2,148
3,827
3,177
Chicago,
Milw.,
St.
23,883
19.668
18 952
10,560
8.69C
4,962
1,135
733
3,841
4.269
4,280
3,759
10.153
9,460
472
12,924
638
411
9,421
525
Chicago
&
P. & Pac
Chicago, St. Paul, Minn. & Omaha'
Missabe
Duluth,
&
Range—...
Iron
Shore & Atlantic—
Eastern..
Dodge, Des Moines & South——
Duluth,
Elgin,
Ft.,
Lake
&
Northern
Great
Green
South
Joliet
i
—
—
—
—
Western—
'
Superior & Ishpemlng......— >
Bay
—
&
Pacific
Portland
Spokane,
255
J 64
8,763
4,477
535
707
101
3,003
GEORGE
H. BUCHER
GWILYM A.
691
226
1,678
180
1,485
2,569
4.774
3.332
2.74J
9,559
9,444
4,338
3,572
91
85
343
222
2,366
1,585
1,514
2,160
President, Wesiinghouse Electric &
1.821
5.013
President, Peoples-Pittsburgh Trust Co.
1,550
98,866
80,271
74,827
67
63,948
77
49,932
Manufacturing Co.
HENRY A. ROEMER
Spang Chalfant, Inc.
President, Pittsburgh Steel Company
ROBERT L. CLAUSE
E. W.
President, Pittsburgh Plate Glass Co.
W. D.
Atch.
Top. & Santa Fe System..
Alton....—
Bingham & Garfield—
22,705
Denver
Fort
Rio
&
Denver
Worth
&
Lake..
Denver
City.
432
427
104
91
19,253
2,891
12,722
2,959
15.579
14,787
11*581
8,387
2 662
2 824
989
7P8
10 261
9,384
11,499
2,689
3.536
777
788
1.757
3,014
4,189
2,662
662
936
13
12
3,089
1,147
890
861
1,146
999
2,120
1,682
1,880
1,666
1,479
1,004
855
925
596
360
—
1,950
1,700
—...—
'1,021
567
23
31.
28,916
22,654
Nevada
North
Peoria
Northern—
Western Pacific..-:
Pekin
&
Southern
Toledo,
Union
Union
(Pacific)
Pacific
Peoria
—
Western
&
126
'451
380
31
0
0
8,870
—'
I
353
284
216
12.925
12,408
8,382
424
633
5
5
2^390
I
(' )«
."'•
,
e
).
Hillman Coal & Coke Co.
1,536
1,599
101,969
'
Senior Vice President, First National Bank
VERNON F. TAYLOR
WM. LARIMER JONES, JR.
Oil and Cas Producer
Vice President, Jones & Laughlin Steel Corp.
GEORGE T.
ALEXANDER E. WALKER
LADD
President, United Engineering & Foundry Co.
President, National Supply Company
GEORGE E. PAINTER
Vice President, Union
WILLIAM P. WITIIEROW
96,992
2,8Q6_
*73,861"
President, Blaiv-Knox Company
Storage Company
1.254
14,210
1267433"
-
CLYDE C. TAYLOR
J. H. H1LLMAN, JR.
Chairman of Board,
5 816
21,635
210
Pacific..
Total—
>
98
484
16,970
System
Utah—
Western
1,672
.
717
Pacific
GEORGE
Real Estate
1.54G
2 921
Terminal
-
Pennsylvania Railroad Co.
Central Region
9,288
2,755
Missouri-Illinois.,
Illinois
SMITH
Vice President,
2,420
819
—
Grande Western—
Salt
&
6,556
3,539
901
Southern
&
—
Illinois—
Eastern
&
8 363
,2,542
3,630
& Illinois Midland—.—>
Rock Island & Pacific.
Colorado
16.672
2,761
490
—,
Burlington & Quincy—_—
Chicago,
Chicago
Chicago,
Chicago
18,197
3,595
—
C. ROBINSON
A.
HENRY CHALFANT
4
District—
Western
Central
PRICE
'
76
.....
Director, Federal Reserve Bank of Cleveland
422
8.239
11,531
.......
FRANK F. BROOKS
President, First National Bank,
192
607
11,295
287
& Seattle..
Total—
400
441
6,350
....—
Spokane International—
1,025
7,689
,
2,146
Minneapolis & St. Louis...—
St. Paul & S. S. M
Minn.,
Northern
868
613
MEMBER
Federal Deposit Insurance Corporation
Federal Reserve System
Pittsburgh Clearing House Association
1,828
35,473
of
responsibility but consented to
figures.—
-
....
Federal
3,341
•
tiss
-'Previous
Chairman
as
n\j»
for
2,102
3,974
Total™.—.
of Boston
6,161
7,456
Pacific
Weatherford M. W. & N.
nation
Bank
7,136
"
Orleans
Reserve
—?3,913
'
Falls & Southern
class "C" director of the Fed¬
eral
Reserve Agent for the year 1942.
Mr, Creignton succeeds Frederic
Francisco
Southwestern
New
v
4,944
Pacific
Acme
St.-Louis
Texas
2,291
2,237
368
...
Missouri-Kansas-Texas
Texas
2,245
System on Jan. 17
appointment of Al¬
bert M. Creighton of Boston,
Mass.,
Valley
Louis-San
205
2,312
Southern
Arkansas
Missouri
282
834
&
Madison
St.
The Board of Governors of the
142
3,524
&
Quanah
Creighton Chairman
Of Boston Reserve Bank
1941
193
&
&
1942
.
4,421
Litchfield
Missouri
1940
•
2,118
Louisiana
Midland
1941
Northern.
Lines
International-Great
Kansas, Oklahoma
Kansas
Connections
1942
Island
A. M.
Received from
8.714
2>806
— 1,318 —
4,627
5,408
—
1
1,339
171
11,184
10,627 — 8,253
9,801 — 7,785
144
>>>'89
1,864
1,421
■-
8,955
240
2,404
;
i
Line
Erie-
18
1,229
-
! 1,216
?
9,656
Ironton
Shore
2,479
,,
1,452
7,125
Mackinac
&
Detroit,
Detroit
-
7,555
-
239
—13,505
—1,443
>
Hudson..,^,
Lackawanna &
1,829
1,383
t
1941 *
1942
?
1,696
7,554
„•
t
Connectionb
571
8,565
-
Gulf
Received Horn
542
>'1,478
— :7— 35
—_
Indiana
Delaware &
,
1,775
2,301
,
Chicago, Indianapolis & Louisville
Central Vermont
-r<
1941 ? 7 A 1940
541——
....
Total Revenue
Freight Loaded
Burlington-Rock
•.
TotalLoads
■
•
Freight Loaded
,
i>. taster* District—
Ann
ll '
(NUMBER OF CARS)—WEEK ENDED JANUARY
— \
Railroads
Railroads
Southwestern District—
CONNECTIONS
431
Total Loads
-
—
r
'
— —• —
——
FINANCIAL CHRONICLE
ifi
my
H
mi
mr
*
Of
4 *i S
* i St
*
*M *.M
*
fr 1**
4
n< it i
M
M
f
W*
**
f"- W
t
this
re¬
of his
432
THE COMMERCIAL & FINANCIAL CHRONICLE
the
revised "production
for
the
previous week. The gain over the
The State Of Trade
against
activity showed appreciable gains for the week, with
most leading industries
continuing on the uptrend. The transition
of the steel industry from
peace-time to war material production
gaining speed, and is reflected in increased demand for steel for
all
munitions purposes,
For
summary.
light, but
w^i'
several
it points out, general demand
plants obtained ♦>
—-——-————
as more
contracts
the magazine "Steel" reports in its current
and
weeks,
have
retooled
lines, orders with high
priority are increasing rapidly,
Steel
scheduled
this
the
(of
the
1923-25
constitute:
would
a
was
~
T
a
the
14.5%,
showing of
Number
Engineering construction awards
for the week
$127,640,000,
higher than for last week, but
1941
week
of
reported by
News-Record.
Fed¬
week's
weekly:
■
at
the Association of American Rail¬
7
The
consumers'
buying
volume,
are
reported, an increase of 74,which/ last week sent department 024 cars, or 10% over the previous
store sales 45%
above the same week.
This represented a more
week in 1941, is
showing signs of than seasonal improvement. The
gathering
further
momentum gain over the same week a year
rather
than
diminishing,
learned recently.
5
Retail
trade
during
it
weeks
ended
ago
the
four
last
Saturday was
per cent higher than in
the same period last
year, accord-,
ing to the Federal Reserve Board/
de¬
that
so
partment store sales for January
may very well run some 40 per
cent
ahead
of
that
event
the
Reserve
January,
1941.
In
adjusted
dollar
canned
goods
depart-
of
tailers
were
resisting
United States entered the
14,450
the
OF BROOKLYN
'/■■r?:
' Incorporated
of
the
executive
the C. I. O. at
17,039
566,586
•:
Virginia
23,208
"Includes" -1,969, -bales. of
the
"supply
the
for : the
Hotel
a
closed
of
baies pf the.crops.of;. 1940 and,1939.
The
3,457
statistics
for
49,833
in
this
1940, and
bales
of
1941
173,428
ginned
1940-41,
849,420
431.256
2,715,166
v.:."
'
10,167
to
Aug. 1 which was
with 32,187 and 137,254
;
.
include
for
prior
compared
;
,
.
report
508,703
-
=
20,899
of
crop
season
r'
•
940,062
490,823
3,015,576
:
>
426,903
00,672
.■:/459.222
'
-
717,933
■
v
572,896
in
13,029
717,485
1,534,610
.372,642
405.949
2,463,370
counted
r''1
:-
-
447,233
>
109,763
v,.739,944
7-
7 667,104 v ;
CaroliriaY;^iO__iL_L
Texas
i
-
470.59T7.wo
Tennessee
;
rt
■
'1,200,362
■
YY.:'
%■:: 87,720
Oklahoma
are
10,905
:r
907,310
y.l 4,110
'
Carolina;
South
a
310,200'
Mexico:
Ncrth
9,627
'
1,386,0)5
Missouri
1939.
871
round
Included
bales
in
the
for
>.
above
are
American-Egyptian for
ConsumptioHivStoeks, Imports And Exports •— United States
Cotton consumed during the inonth of
December; 1941/amouitited:i
>
to
887,326
bales.
Cotton on hand in consuming establishments on
2,393,782 bales, and in public storages and at com¬
presses 13,713,773 bales:
The number of active consuming cotton
spindles for the month was 23,063,112.
Dec.
31,
In
the
interest
has
merce
war.
was
decided
of statistics
tion
of
to
national
defense,
discontinue
of
meeting at
Department
notice
of
the
Com¬
publica¬
Statistics
conditions
war
and
the
dependable world statistics such data
report for the time being.
of
the
further
concerning imports and exports.
World
Because
until
difficulties
in obtaining
being omitted from this
are
Roosevelt, recommend¬
that affiliated unions demand
ing
"substantial
DE
KALB
\
AVENUE
FULTON
••
t
>,
.
.=•
V"
standards
STREET
BROOKLYN, N. Y.
•
Moody's Bond Prices And Bond Yield Averages
Moody's
of
given
many
a
*
1859'
AND
wage
increase."
They contend that increases in the
of living threaten the living
ployers in
/
•>"
*
cost
/
:
*)
-
greater
Statement, January 1, 1942
Hand
on
and
in
Bank,s
Bonds
Guaranteed
Bonds
of
by
the
$13,661,693.97
.■
=
51,288,235.73
_
United
States
6,809,150.03
States
416,055.12
_
Bonds
of
Bonds
of
Counties
Bonds
of
Towns
Bonds
of
Railroads——^—.
Bonds
of
Cities
Investment
in
•"
1
and
Banking
Other
611,729.46
6,214,345.11
Utilities^
5,965,684.73
4-
Savings Banks Trust Company and
Mortgages
'
'
135,934,869.96
Interest Due
and
;
3,941,961.00
Accrued—:
1,532,024.06
.
Prepaid Taxes
Other
61,977.96
Assets
59,148.37
$242,352,037.23
Due
205,482
Due
Depositors
for Taxes
Reserve
Other
and
Expenses
:.
$206,735,148.55
(Investment
Par
Value
consignment
secure
Value)
of
Defense
Federal
Reserve
Bank
of
New
York
PHILIP
A.
BENSON, President
FREDERICK
WALTER
GEORGE
W.
C.
AUSTIN C.
D.
CHESHIRE, Secretary
MAUGER, Comptroller
GRAHAM,
A. EDWARD
C.
Asst.
Treasurer
SCHERR, Jr., Asst. Treasurer
CLINTON L.
RAY
Vice-President
Vice-President
MILLER, Asst. Secretary
H.
";
GUSTAV
HELEN
V/.
T.
R.
FEIL,
Asst.
CLINTON KEELER,
THOMAS
S.
WILLIAM
SITES,
C.
KNAPP,
EVERETT J.
HERBERT
BELL,
92.06
97.31
110.52
113.70
117.21
105.92
116.22
114.08
107.62
92.06
97.31
110.52
113.70
116.22
114.08
107.62
91.91
97.31
110.52
113.70
106.92
116.22
114.08
107.62
91.91
97.31
110.70
113.70
106.92
116.22
114.08
107.62
91.91
97.31
110.70
2i:Awu_
117.65
106.74
116.41
113.89
107.62
91.77
97.31
110.70
113.50
20
117.61
106.92
116.61
113.89
107.62
92.06
97.47
110.70
113.70
facture of
war
19
'
,;
war
is
about
116.41
113.89
107.62
92.06
97.47
110.70
106.92
116.41
113.89
107.62
92.06
97.31
110.70
113.70
117.60
106.92
116.41
113.89
107.62
91.91
97.31
110.52
113.70
117.53
106.92
116.41
114.08
107.62
92.06
97.31
110.70
113.70
______
117.81
106.92
116.41
114.08
107.62
92.06
97.31
110.70
______
117.86
106.92
116.41
113.89
107.62
92=06
97.31
110.70
113.70
117.91
106.92
116.41
113.89
107.62
91.91
97.31
110.70
113.70
118.09
106.92
116.61
114.08
107.62
91.77
97.16
110.70
113.80
12
as
10
!
•
106.92
117.59
13
contracts
117.60
______
______
14
profits running into fat
percentages—reveals that the true
______
17
so-called
picture of profits on
thus ; far- negotiated
______
9
spite of the sensational dis¬
closures concerning profits which
in one instance soared to a level
of 247% on
118.00
106.92
116.61
114,08
107.62
91.77
97.16
110.70
106.92
116.61
114.08
107.80
91.62
97.16
110.70
113.89
106.92
116.61
114.08
107.62
91.62
97.00
110.70
113.89
114.08
107.62
117.82
for
profit—on
under
was
every
:i
'};
106.74
116.61
5
117.95
106.56
116.02
113.70
107.44
91.34
96.54
110.70
113.31
117.85
106.39
115.82
113.70
107.27
91.05
96.23
110.52
113.31
2
■
8%.
all
That
contracts
117.61
106.04
115.82
113.50
107.09
90.63
95.92
110.34
113.31
118.10
106.92
116.61
114.08
107.80
92.06
110.88
113.89
117.21
106.04
115.82
113.50
107.09
90.63
95.92
110.34
113.31
120.05
108.52
118.60
116.02
109.60
92.50
97.78
112.56
116.41
1
means
that
contract upon which a
realized
than
more
1942
1941
High
Low
other contract
was
ful¬
a
were
1941
27,
116.22
112.00
106.04
89.23
95.62
109.42
111.62
117.80
113.70
106.56
90.91
97.16
109.97
113.50
102.13
115.63
112.00
100.81
84.17
90.48
106.74
110.70
2 Years ago
Jan.
27, 1940—
115.54
MOODY'S
(Based
1942—
<
BOND
on
Avge.
Average
27
rate
Aaa
Aa
ROBERT D.
PARKER, Asst. Secretary
BARKER, Real Estate Officer
ARTHUR
JOHN
J.
C.
Frederick
Walter
W.
J.
W.
Rowe
Hammitt
Wason, Jr.
Edward. C.
Blum
Thomas H. Roulston
John
F.
Bermingham
Frank F.
Philip A. Benson
The
Advances
Arthur L. J. Smith
Joseph K. Smitn
William W,
Walsh
Albert Hutton
Charles
DeWttt A.
R.
Gay
Forward
William G. Creamer
2.97
3.30
4.28
3.92
3.14
2.97
3.30
2.84
2.95
3.34
P. U.
Indus
2.84
2.95
4.28
3.92
.2.84
2.95
3.30
4.28
3.92
3.13
2.93
3.35
2.83
2.96
3.30
4.29
3.92
3.13
2.98
3.34
2.62
2.96
3.30
4.27
3.91
3.13
2.97
2.96
____
-.
Ur —
3.34
-
19
•'
3.34
2.83
144%
of
normal De¬
the
14
3.34
4.27
3.92
3.13
2.97
2.96
3.30
4.28
3.92
3.14
2.97
2.83
2.95
3.30
4.27
3.92
3.13
2.97
2.83
2.95
in November and
111
The
cember
Dyer firm
increased
distribution
consumers
added
further
as
large
amounts of sugar to their inven¬
tories.
ibles
They estimate that invis¬
(consumers inventories) ad¬
vanced
year.
considerably
during
the
3.13
2.97
2.83
2.96
3.30
4.27
3.92
3.13
2.97
2.83
2.96
3.30
4.28
3.92
3.13
2.97
3.34
2.82
.2.95
3.30
4.29
3.93
3.13
2.96
9
3.34
2.82
2.95
3.30
4.29
3.93
8
3.34
2.82
2.95
3,29
4.30
3.93
3.13
2.96
7
3.34
2.82
2.95
3.30
4.30
3.94
3.13
2.96
3.30
4.31
_____
3.35
2.82
2.95
3.95
3.13
3.12
2.96
2.97
3.36
with
states that De¬
3.92
2.97
10
3
in De¬
1940, and is the second
highest figure recorded for 1941,
being exceeded only by the March
figure of 183.
4.27
3.13
3.34
6
compares
3.30
3.91
3.34
Their
brokers.
-
2.96
|3.30
13.30
4.27
2.83
13
Dyer & Co., New York, sugar
and
2.97
12
Index
figure
3.13
i
2.83
*
2.97
3.31
4.32
3.97
3.13
2.99
2.86
2.97
3.32
4.34
3.99
3.14
2.99
2.86
2.98
3.33
4.37
4.01
3.15
2.99
3.39
2
2.85
3.37
3.39
IIIIIIIIZII"
2.86
cember
George C. Johnson
3.14
3.34
22
,
distribution, according to
of Sugar Distribution
(adjusted for season variation and
long-term trend) prepared by B.
the
120
Jackson
3.92
20
: v
December
preliminary
December
Henry A. Ingraham
2.97
4.27
2.95
,
21
W.
TRUSTEES
3.14
3.30
2.84
cember
MACKEY, Asst. Solicitor
3.92
3.34
Asst. Secretary
WEYMANN, Solicitor
R.R.
3.29
23
Corporate by Groups
Baa
4.27
2.96
24
Dyer Index Of Sugar
Prices)
A
2.84
,
CLINTON W.
Closing
Corporate by Ratings
3.34
___.
3.34
Counsel
AVERAGESt
,
.Corpo.= ,
YIELD
Individual
26
economists
ALBERT HUTTON,
97.47
105.52
15
SHEPHERD, Asst. Secretary
ALFRED R. MARCKS, Mtg. Officer
CLOSED
106.56
mately
Secretary
113.70
117.54
Secretary
Asst.
110.88
115.89
1941
3.34
Auditor
96.85
1 Year ago
Daily
substantial.
91.85
STOCK EXCHANGE
1942____
High
Low
Jan.
some
113.89
3
•:
one
'
reckons
113.70
118.10
6
contract, the aver¬
profit—as the Government
age
______
7
v=
113.70
117.94
______
8
In
113.50
16:
materials had made
3.34
Officer
Indur.
106.92
17
Mtg.
P. U.
117.68
distribution of 704,294 tons as re¬
LIVESEY, Asst. Secretary
M.
R. R.
107.80
16
Asst.
Corporate by Groups •
Baa
113.89
ported by the A.A.A. was approxi¬
ANDREN, Asst. Mtg. Officer
A
116.22
117.51
,
BIEDERMAN, Asst. Secretary
Aa
106.92
117.38
Distribution
-
r GUY L. GOULD, Asst.
Secretary
JOHNSON, Treasurer
GEORGE N.
JOHN
ROWE,
HAMM1TT,
EDWIN
7
Aaa
117.47
______
Jan.
=,
OFFI CERS
Yields)
Corporate by Ratings *
rate *
26
to
Bonds.
PRICESt
Average
______
$35,616,888.68
pledged with
arc
22
these
■*$375,000
averages
23
loss correspondingly be¬
Large numbers of losses
were reported on contracts studied
by the committee and some of
945,587.17
yield
27:
Jan.
low 8%.
342,000.00
Corpo¬
Bonds
BOND
bond
■'
Avgc.
Govt.
v=;'.'
on
and
,
24
filled at
170,806.50
Liabilities
Surplus
Daily
committee, that report
Congress and the
nation last week by disclosing that
many firms engaged in the manu¬
8%,
$205,276,754.88
25,459 Christmas Club Depositors——
(Based
U. S.
_
Averages
shocked
manufacturer
LIABILITIES
MOODY'S
;
.
1942-
prices
tables:
which
1,247,850.00
3,453.087.33
Estate—
recent
refutation of this
as a
bond
following
the Vinson
follows:
■
(less Reserves)
Houses
Real
9,829,345.40
1,324,899.09
Institutional Securities Corporation—
Bonds
•
_
____
Public
in
the
in
making
than
profits
■
are
careful official
analysis of the data presented by
__
of the United States *
lines
latter statement, a
RESOURCES
Bonds
computed
em¬
notwithstanding taxation.
years
Seemingly
Cash
While
workers
^'1 •b'V),
*■>
1
1941;
1941; 25,930 for 1940; and
25,063 for 1939; also 2,807 bales Sea-Island for 1941, 4,714 for 194'0
and 2,142
10^1939,: .; -\
The statistics for 1941 are
subject to revision when checked
against the individual reports being transmitted by mail.
The
revised total of cotton
ginned this season' prior * to Dec. 13, is
9,916,519 bales.
^
the
board
17,801
v>,
a
action
421,830
tt'.v.v-r
Ne\v
186,166
1,358,131
<•
,:
3,515
trouble is looming again
disturbing influence.
A de¬
velopment causing concern is the
The DIME SAVINGS: BANK
508,762
v•
\>ya
••
'•
998,762
Labor
as
'•••768,625
v,& Wf
139,126
1,426.145
>: 642,169
Kentucky
oxher
until
762,575
Y.
•
308,295 :.' :
r.mnsinrin
KC
Louisiana +*:»<
volume
and
-.A
.w* 3,47:4
being attributable to hoarding of
sugar,
L
Mi ssi ssippi
.
Federal
index
Board
was
11,412,432
,
Illinois
■
in
:
148,580
Florida:
.
In view of the
continuing buying
rush this rate of gain should be
increased,
•
increase
1939
11,930,932 :;•••;•■
Georgia
primarily
36
somewhat
the
V,
••
1,375,905
California
approximately 30% higher than in
January of last year, about 5%
of
1940
773,474
/•
Arkansas
107,699 cars, or 15.3%,
foods, according to the American
as a result of sharp in¬
Institute of Food
Distribution, Inc.
crease
in miscellaneous coal and
Wholesale grocers are also
experi¬
grain freight.. The national im¬
encing a heavy pick-up in buying
provement over the same week in
because
retailers
are
stocking
1940 amounted to 164,814 cars or
anead now at prices they fear will
25.5%,.; '
go higher.
;
A total of 3,450,468,000 kilowatt
The present food movement, the
hours-of electric energy was dis¬
tributed during the week ended institute reports, represents an¬
Jan. 17th by the electric light and other buying rush similar to the
power industry, according to the accumulating sales of last August
and
September.
The
buying,
regular report of the Edison Elec¬
tric Institute.
This represented a however, is at appreciably higher
decline of nine-tenths of 1% from prices which- consumers and re¬
was
.
some
'
Retail'food sales this month
roads
rush
half bales and excluding linters)
as
.
*10,240,027/
Arizona
average, This higher than a week
ago, and are
new all-time
responsible for the increase. They
,
1941
States
Alabama
86%
93%
up
f pblflk.:
s
».*«•"
top the 1941 week by 7%.
1,607,600 net tons or 97.3%
of I " Reflecting
substantiallyin¬
Public
construction
is
69%
capacity, against 1,614,200 tons or creased loadings .of miscellaneous above
last, week,- but iy2 % under
97.7% of capacity last week, the ! freight and grain
andjgrain prod- the week last year, v Private
American Iron & Steel Institute
ucts, railroads loaded a total of awards are 45 and
81% lower, re¬
reports.
A month ago output was 811,196 cars of revenue freight
spectively, than a week ago and
at 96.1%
basis or
during the week ended J an. 17th, a'year ago.
1,567,100 tons
week
t"-
State—
United
as
awards, which make
this
.
.
(Counting round
are
[18% lower than in the correspond¬
ing
bales
,
53%
are
of
of cotton ginned from the
growth of 1941
prior to Jan. 16, 1942 and comparative statistics to the
correspond¬
ing date in 1940 and 1939.
■
v.'v,;\v. :•:.!
'/'fy running bales
%,■.
15.7%.
eral
140%
Ginitings Below A Year Ago
year ago was
previous
Engineering
month
possibly' approximate
may
production in. the United
is
for
sales
store
ment
for\new
States
week
sarne
Business
is
Thursday, January 29, 1942
STOCK EXCHANGE
High
Low
1942
_—
4.37
CLOSED
4.01
3J5
2.99
3.34
2.82
2.95
3.29
4.27
3.91
3.12
2.96
2.86
3.06
3.39
4.47
4.03
3.20
3.08
3.25
2.72
2.85
3.19
4.24
3.89
3.03
2.83
3.36
2.76
2.97
3.36
4.35
3.93
3.17
2.98
3.62
1941
1941
Low
3.33
3.42
1942
High
2.98
2.87
3.06
3.70
4.85
4.38
3.35
3.13
1 Year ago
Jan.
27,
1941__
2 Years ago
Jan.
27,
•
1940—
These prices
computed from average yields on the basis of one "typical" bond (3%%
coupon, maturing in 25 years)
and do not purport to show either the average level or th«
average movement of actual price quotations.
Thev merely serve to Illustrate in a more com¬
prehensive way the relative levels and the relative movement of yield averages,
the lat¬
ter being the true picture of the bond market.
t The latest complete list of bonds used in computing these indexes was pub¬
lished
are
in the issue
of
Oct.
2,
1941, page 409.
Number 4039
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
-
433
polishing up for the Great Hour.
Finally the day and The Hour
approached. It was to be the in¬
wna
v
of the Ruppert's Beer
In the audience were
sponsors
in white ties and
augural
program.
the
C.
ALABAMA POWER COMPANY
Robert
Maxfield,
of
R.
tails, distinguished guests, adver¬
officials and NBC heads.
The program was to start with a
work heave it into the furnace. It
E.
Swart & Co., is quite proud of his
six-month-old baby, and usually
will
tising
coal bill
down.
In fact it may bring
First 31/28,1972
it
devotes his time to two things: down so far that you may not
Recent Refunding Offers Improved Mortgage
Talking about the baby or trying need any more fuel for some time,
to make a trade.
If business is if ever, again. (3) If you are lucky
Of Southern Operating Company
slack he can always tell people enough
to
find
an
incendiary
A lesson on how to sweeten a refunding mortgage and thus suc¬ about the
baby; how it gurgles; bomb burning in a building, you
cessfully woo the prospective bond buyers was given in last week's how cute it is, etc. However, the lucky you, place your foot on it
sale of $80,000,000 First Mortgage 3V2% bonds of Alabama Power other day he came in with a new firmly and press.
From that day
Company. This new $80,000,000 mortgage replaces a series of old bit of philosophy that he got from on you'll be known as 'Hot-Foot
"A girl can't believe Horace.'
If that doesn't work try
mortgages totaling $95,583,600 which carried interest rates of 4%% his maid:
and 5%.
In effect, the company's mortgage debt is being cut 16%
Your reputation will
everything she hears," she ex¬ both feet.
and the annual interest cost there-^
plained, "but she can always re¬ thus be doubly enhanced. (4) Al¬
increased
to
better/ than
2.30 peat it." '•>
on
/
' ■'
by about 40%; The new 3V2S'"
ways yell loudly.
If the people
were
offered at
about
101% to yield times, so substantial has been the
help
keep
your
flourish
musical
phone
and
say,
The
On
Is
awaited
and
the
an¬
to step to the micro¬
nouncer was
"Ruppert's Beer
Air"!.
signal
Finally
came
the
from
the
.
j
,
V Since the
interest
of
1972.
date in
to their due
3.40%
covered its
company
charges on the average
1.72 times for the three
only
1939 and 1940, it is
obvious that 31/2%
bonds
1938,
years
quite
could not have been sold
fully at
success¬
better without con¬
par or
siderable change in the company's
capital
pany
sat
the
Consequently,
setup.
bankers
with
down
the
com¬
and agreed to shape the situ¬
ation
that the bonds would be
so
acceptable to institutional buyers.
Step
number
this
in
one
/ procedure was the net reduc*
the mortgage. - This
accomplished by making "
was
up
the difference between the V;
$97,503,000
deem
required
the
$80,000,000
,
of
borrowing
to
bonds
old
bonds
new
$12,000,000
banks and
re- :
the
and
by putting
by
from
ap¬
up
i
The
$12,000,000 of bank loans
are
due
serially
$750,000
in
eight
payable
*
nually.
went
cash,
own
Step
hand
feet
saving
through
V of 314s
5s.
charges amounted
the
new
bonds will be $2,800,-
v
the $12,000,000 bank
instalments
the
interest
be payable.
;
.
as
Alabama
of
and
Tax
,
/
its
in-
a
of
a
retail
at
service
area
population in
excess
of 3,250,000... Number
of
customers served is approximately
167,000. Of total revenues for athe
twelve months ended October 31,
1941, 38% were derived from in¬
dustrial customers, 25% from re¬
sale to affiliated and other electric
companies, -other ~important
sources
being,,, in order, urban
residential, urban commercial and
rural
(residential and commer¬
cial).
The
principal
industries
which make up
the company's in¬
in order, textile
products, iron, and steel manu¬
factures, coal mining, paper and
printing and chemical and allied
products.
dustrial load are,
As
stated
previously,
fixed
charges have been covered on the
average only about 1.72 for the
three years ending with 1940. In
1940, charges were earned 1.62
•
times and for the first ten months
of 1941,
times.
the ratio increased to 1.75
the present financing
Had
been
accomplished and in effect
during this latter period, fixed
charge coverage would have been
doesn't
they
"(1) As
given, run.
are:
is
alarm
pro-
you
where
matter
so
celebrating his de¬
chain had
which the
long
all
keep moving.
the
staff,
the
actors
had
acquired
(it
time ago). For
program director, the
happened
weeks
upon
Being in
some
announcer
and
beerl rehearsing
Reserve
Bank
and
the
Treasury
Department. It has also inaugur¬
ated a payroll deduction plan for
the j the purchase of Defense Bonds by
its employees.
and
of
as
Actual
1,961,821
1,927,359
1,927,359
84,576
111,519
STAMPS
sup¬
as-
■
funds
current
as¬
$6,397,572 $13,522,527
dividends
585,531
Other
for '42
184,268
647,333
647,329
payable &
accrued
Accrued
$4,431,710
$4,431,710
reserve
Preferred
Accounts
electric
distribution and
estimated to have
sale
the
was
parture for the Army.
$9,521,828
payable
is engaged, within the
in the genera¬
energy-and
where/, Here
as
by the New York Stock Ex¬
change, the Association of Stock
a
reminiscent mood he told us Exchange Firms, The Investment
the
story
about
new
program Bankers Association, the Federal
executive
of the young ladies in
who found it some¬
Current Liabilities—
Company is a
Commonwealth- &
-purchase
and
sets
interest
,,3,296
1,473,855
251,543
251,543
$5,919,413
$6,988,705
$478,159
$6,533,822
lia-
current
~
bilities
Total
current lia¬
bilities
State of Alabama,
tion
and
one
office
our
(2) If you
find an unexploded bomb, pick
it up and shake it.
Maybe the
firing pin is stuck. If that doesn't
$2,423,816
—*—-.r
Total
Southern Corporation, which owns
91.38% of .its common stock.. The
company
plan for stimulating the sale
BUY DEFENSE
__
current
sets,—cash
Power
subsidiary
A
of United States Defense Bonds by
Scotch,
or
receivable,
plies
(excluding
;
public air raid shelter always
fortify yourself with a quart of
a
the war, but to decide
what horse in which race was the
as
1,961,821
Other
will
145,000 compared with around
securities
Materials
amortization of debt discount
and expense) will total $3,$4,600,000.
duPont Co. Open In p.m.
,v
To Sell Defense Bonds
market¬
and
Cash
Thus, interest at
maximum
the
alone
market
It
capital
liabilities
net
until at the end of eight years,
mortgage
ex-
selves to drop in at regular inter¬
vals to discuss, not securities, the
soon
The follow¬
Pro-forma
paid eff,
are
of
Current Assets—
loans,./
year
On The Air!!!"
become scared it will
merely prove they haven't the
keenly developed sense of humor
you possess.
(5) Before entering
offices of
group
customers have accustomed them¬
from
$6,534,000
actual
current
able
every
pleted
it
and
the
announcer
stepped forward.
With a firm
voice, resonant with earnestness
he announced, "Buppert's Rear Is
31, 1941:
Accounts
$43,125
a
and net
$478,000
working
Oct.
the maximum; this will taper
by
net
and
at.2%% will total $345,000—
off
T^e music gave the flourish, com¬
-
000 and interest the first year
on
•
a
hush.
forma figures of current assets
$4,597,-
to
at
with
shows
ing
on
.
Interest requirements on
000.
capital
at Oct. 31, 1941.
of 414s and
total
interest
1940,
$2,424,000,
working
in place
In
at
actual
good
Giving ef- /
financing, cash
compared
>
issuance
the
too
basis.:
the
to
stands
the
interest
/ annual
look
pro-forma
-
mortgage reduction, being the
substantial
year
uptown
house
a
two onions and a large
piece of garlic—internally, natur¬ keeping its branch offices located
in mid-town and up-town New
This will not only insure
best bet of the day.
One day ally.
York
open
evenings
was
an¬
while bent over one of those rac¬ you having plenty of room but
nounced today by the New York
or
14.7% of gross revenues com¬
ing records, the study of which will also increase your popularity
pared with 17.6% charged for the everybody
with your neighbors. (6) In case Stock Exchange firm of Francis
knows
practically
I. duPont & Co., and Chisholm &
full 1940 year. Since operating ex¬
guarantees a winner, the statisti¬ the air raid warden becomes of¬
penses,
and
more
particularly cian of the firm wandered in. ficious, take a poke at him. He Chapman. The offices which are
to operate both in the day time
taxes, have risen considerably, it
"Gentlemen," he began. "I have always saves the best seats for
is not expected that a large per¬
himself and his friends anyway." and evening are located at 11 East
an investment
program in mind
43rd Street in the Grand Central
centage of the increase in gross
that;.
Never mind, young fel¬
will be carried through to income
zone, 201 West 72nd Street, and
The other evening our conduc¬
ler," broke in one of the avid
2449 Morris Avenue in the Fordavailable for fixed charges. A full
3"
following of the sport of kings. tor d of the "Uptown After
ham area. The firm, which has
year estimate of around 1.70 times
"I already have an investment department asked us to join him
more
offices in New York City
seems reasonable, this figure being
picked out that will set me up on a trip to the Penthouse Club.
than any other Stock Exchange
somewhat better than for 1940.
for life—a three-horse parlay."
Being envious of his job and
Since some $5,000,000 is be¬
anxious to see how he earns his member, intends to extend the
plan to other of its offices if the
ing expended out of the com- /
With air raid precautions, and money, we agreed.
After meet¬
test proves successful.
pany's funds to round out the
what to do in case an alarm is ing a lot of people, whose names
The firm is applying for licens¬
amount needed to retire the
given, posted in all /conspicuous we never got, and if we did we
old
mortgage
bonds,
the
places, we were startled at a new don't remember them, we joined ing as an issuing agent for De¬
working
capital
position
set of directions that came to us a table at which a young NBC fense Bonds under a plan agreed
two
with
full
doesn't
semi-an-
hand
will approximate
$26,000,000, 13%/ ahead of 1940.
During the 1941 period through
October, depreciation and main¬
tenance
amounted to $3,206,000,
the
years,
number
in
is estimated that gross for
and it
of trie
one
member
was
,
proximately $5,000,000 of the
company's
totaled $21,727,000,
gross revenues
a
There
.
tion in
/
In
of 1941,
For the first ten months
room.
i
you
saving. * / //:/: ///
interest
control
Net
working capital
/ Concurrently
financing,
plant
the
account
from
down
587,000,
a
the
with
recent
company's utility
is
being written
As
in
WE enter
of which amount
mission and/or the Federal Power
On
the
total reduction of
basis of
this
$23,149,000, net
000
against the previous figure of
$176,474,000. The $80,000,000 of
mortgage debt now outstanding
thus represents 53% of net book
to
strike
overall
grade
picture
reveals
slightly
above
average.
made
and
on
the
the
HELP
selling
the
give
we at
yourself and Uncle Sam by
regularly.
^
SAVE for
account' to meet
or
Start
a
SAVINGS-
sayings
them without
BANK
stress
strain.
That
bonds.
^
KEEP informed. Come in for any
on
taxes, defense bonds, and
facts
the many
services available to
you.
main
291
60
a
substantial
mium almost immediately.
<
prem
office:
26 Cortlandt Street
41 Rockefeller Plaza
Broadway
Spring Street
ful is evident in the fact that the
to
for 42.
company's
the entire procedure was success¬
bonds went
always in peace-time
EAST HIVE It
r
your taxes.
appointed task, eager
the East River Savings
today in this time of emergency as
you,
buying Defense Bonds and Stamps
various
books obviously were for the pur¬
of
And
the services you now need for your Victory .Program
The overhauling done to
mortgage
march. Each turns to his
blow for the land of Democracy.
years,
a
bond,
pointing
the
middle-class
a
want to
of utility plant, including
intangibles.
\
/
"
/ /
pose
dropped
its task with a sublime
Americans — when all hesitation
Bank
value
changes
us
"*
'
Men and institutions are on the
plant account stands at $151,438,-
the
for
period that will go down
like last year's clouds; and our country swung to
unity of purpose.
$17,992,000 rep¬
by
the Alabama Public Service Com¬
The
leave behind us a fateful
history as a time of decision
away
resents the writedown ordered
medium
new year we
$189,736,000 to $166,-
reduction of $23,149,000,
Commission.
the
new
Member
Federal
*
743 Amsterdam Avenue'
Deposit
york
Insurance
Corporation
434
THE COMMERCIAL & FINANCIAL CHRONICLE
jmake
JOTTINGS
Securities and Exchange Commission
:'wipe yut .mpre
pr
■-
.Thursday; January 29; 1942
y
_
additional
jpbs
seemslfutile.i ' One guess.: is that
in 1942 jobs in civilian industry
(Continued from First Page)
(Continued from page All)
the public more sensitive about wilt'be cut from 44,000,000 to 33,Excessively rapid turnover of Commission membership others.
000,000, a loss of 11,000,000, while
-v-V
v
has pointed the personnel problem in recent weeks and
the Army will take 2,000,000 men
Each
piece of rationing ma¬
months. With disturbing regularity the members have used chinery set up will make the next and arms production (including
machine
tools, - and
the agency as a mere springboard for hoisting themselves easier and make Washington more shipyards,
other 'indirect
arms
industries)
willing to set it up.
into Federal judgeships.
Blasts at the securities business
will be using 18,000,000 at the end
Each rationed item dams' back
of 1942 instead of 5,000,000 at the
usually have signalized such elevations by President Roose¬ purchasing power and so in¬
velt, which in itself is a circumstance that provides ample creases the pressure on other beginning. That would mean that
this year the war will provide
1
food for thought. Squabbles within the Commission as to commodities or services.
15,000,000 jobs and destroy 11,the Chairmanship, which is not a statutory office,-have,
000,000. But such figures are the
Notice,
incidentally,
how
a rankest of
reflected a disgraceful playing of politics among some
guesses. The one thing
scarcity situation is creeping up sure is that there will be enormembers.
like a tide into one farm com¬ m o
li s
dislocations,
migrations,
It is not surprising, in view of all this, that John S. modity after another. First pork,
transfers, and movements of many
then dairy products, then feeds,
Fleek, as the chosen spokesman of the investment bankers,
men into better jobs and of many
then fats and oils.
And just as others into
turned to the question of the Commission, itself, when
poorer jobs.
^
':-.rapidly, the "farm program" is
hearings again were held last week on proposed changes in being changed from the minimum
the various enactments administered by the SEC.
Like production goal- of the '30s,
Another
thing is certain.
other elements of the financial community, the investment to the goal of maximum produc¬
The f totals of factory con¬
tion.
The
present principle—of
struction will be almost fabu¬
bankers well realize that regulation is here to stay, and they
"balancing production" by getting
lous compared with previous
are anxious to make the
regulations merely an ordinary farmers to shift from surplus to
years—even with 1918.
The
part of their daily affairs, rather than a capricious and con¬ scarce crops—may be only a tran¬
recent auto controversy high¬
r
nuni
•
,>-y
tinually disturbing factor that can nullify at the whim of
the regulators months of hard work and years of estab
lished relationships. With an unfortunate Commission per¬
sonnel and new faces appearing at speedy intervals, this is
hardly likely to be achieved.
In
his
before
statement
the
House
Committee,
Mr.
ultimate
effort
stimulate nearly all crops.
erating
the
process
to
Accel¬
be the
will
rise of farm wages, the migration
of farm labor to arms plants, and
scarcity of steel for
machinery.
a
farm
new
7
I
are
re¬
;
New yards and ways
'
for
ships. - The airplane in¬
dustry will have to add per¬
haps 50,000,000 square feet of
factory space as fstst as pos¬
sible. A doubling of machinetool
output
in
certainly
must
least
mean at
50% increase
shop floor-
a
machine-tool
Mighty/tank factories.
space.
"
Huge
And
the
For
toluol and chlorine
new
plants.
on.
so
/
'
-
.
industries
new
it
has
been double and
re-double; often,
re-triple (as in iso-'
gasoline capacity)
and'
evert more (as in magnesium, ca¬
pacity to be raised from 12,000,-/
000 pounds a year to 400,000,000).
triple
and
octaine
For
a
to the pattern of in-
cue
ternationar trade not only for the
duration but probably post-war,<
watch this Rio de Janeiro confer-:
erice.
Trade
obstructions
which'
have been rising for a decade are1
specialized
tumbling—tariffs, quotas/and ex-:
change controls. Post-war crys¬
tal-gazers still habitually worry
verting
present
civilian plants to highly spec¬
ialized
plants.
war
and
roofs
new
housing
that
t h
e
-
It will be
walls
new
Then
$400,000,000 of
new
s y n
Fleek advocated changes in
i.
lighted the difficulties of con¬
there's
•
there'
fineries;
•
an
Then
those 100-octane gasoline
■.
to
pounds of : alumi-;
to'say nothing of
year
magnesium/
*
sition
a
machines.
rubber
t i c
plant.
and warn about the problem of
finding post-war markets (indus¬
trialization of China, India, South
America, etc.) But the real prob¬
lem will probably not be how to
sell goods but how to get them.
So down will go the
obstructions,
not up—as,they are already be¬
the law relating to the Com¬
Current
There's a plant to be built to
argument v about
produce 500,000,000 or more
long have been pondered by the investment whether the arms program - will
bankers. He urged enlargement of the Commission to nine
■i
members from the current five, pointing out that numerous of some
aid, though it may be questioned whether a final ginning to go down;
and extraordinary burdens have been added to those which
solution would follow.
the Commission originally was asked to shoulder in 1934.
Seven
reasons
for
the
For reasons which are not entirely 'clear, stubborn
The work schedule cited by Mr. Fleek is simply beyond the
strength in the rails, in as¬
opposition has been expressed by the Commission to the
cending order of importance:
capacity of a five-member Commission, and an increase to
suggestion for increase of membership to nine. The other
(1) A more cooperative ICC
nine members obviously is advisable to permit use of the
attitude on rates. (2) The fare
proposals probably are viewed with coy approval. But the
increase.
panel or divisional system of procedure which the older increase of
(3)
The
coming
membership is the most important desideratum,
and seasoned Interstate Commerce Commission has found
freight
increase.
(4)
New
as those familiar with the
long delays and the many vacilla¬
equipment, which will reduce
mission which
,
I
-
advisable.
tions of the overworked Commission well realize, to their
greater stability of Commission per¬ cost.
Fortunately, Congress is said to be much perturbed
sonnel, Mr. Fleek proposed an increase of the salaries paid over the
frequent changes of personnel and the evidences
to the members to $15,000 from $10,000, and extension of
of internal squabbles as to the Chairmanship. It is to be
the tenure of office to ten years from five years.
Both
hoped that this discontent will lead to acceptance of pro¬
these suggestions appear to be aimed at making Federal
posals made by those who suffer most severely and most
judgeships less competitively attractive for members. Adop¬ unjustly from the obvious defects of the Commission.
•
tion of these proposals by Congress undoubtedly would be
With,
operating costs. (5) Court de-
view to
a
cisions
upsetting
(6)
A
vast
in
crease
I troop
haul
of
THE MANUFACTURERS NATIONAL BANK
'-V
V"
'
•
•••/
'
■
..
•
"I
.-.Vw-.i-V
r
I
of detroit
If
Treasury's
profits"
hats
military
tax,
and
or naval
INCORPORATED
At
the
business
of
close
on
December
Cleveland Sto.k Fxclianga
UNION
overdrafts)
$ 36,724,738.26
and
guaranteed
L~
Corporate stocks, including stock of Fed. Reserve Bank
COMMERCE BLDG.
.
'
Telephone
MAIn 8500
-
CLEVELAND
.
68,796,901.00
2,494,693.41
7,360,963.12
324,500.00
U.
discounts
Government
S.
(including
direct
obligations,
Obligations of States and political sub divisions j./
Other
bonds,
debentures—
and
notes,
other
banks,
balance, and cash items in
process
Cash,
balances
with
including reserve
of collection
Bank premises owned $314,844.03, furniture
i.eal
Estate
Other
other
owned
assets
TOTAL
bank
than
i
premises--——__
Telephone WHItehall 4-J640
.
:
.
NEW
YORK
corporations
Time
of
—
Other
liabilities
TOTAL
cashier's checks, etc.)
$
—
(and
War;
Napoleonic,
had
to /
misappropriate
experiment
with
1916-1917 to
tanks
because
at them.
State, Municipal and Corporate
securities
i
The
hit
OR
•
A
N
D
Fewer students
Securities'
/. '•:.;;
fewer
be the. modernizing and mak¬
of them.
ing
mer.
$211,701,233^71
OTIS & CO.
NONE
are,
i—
■
NONE
tired
CLEVELAND
HIGHLAND PARK
Detroit
Chicago
San Francisco
Denver
Columbus
rest,
don't get?
shortage, after people get
of
the
"wolf-wolf"
Building
New York
in¬
sum¬
Some day there actually will be
power
Offices
Member Federal Deposit Insurance Corporation
for
it
Why do professors and stu¬
which other people
(Incorporated)
a
Penobscot
They
But
dents need a whole summer's
Established 1899
DETROIT
endowments.
and
stance, preparing to run all
A
————-
already hard
are
the war.
may
;-r
3,000,000.00
9,609,579.13
loaned)--—--—
—
DEARBORN
colleges
by
548,275.42
...
ACCOUNTS————
M EM
Liabilities
Civil
the
the Army sneered
1,561,303.71
——
CAPITAL
Pledged assets
Underwriters and Distributors
4,500,000.00
TOTAL LIABILITIES AND CAPITAL ACCOUNTS
Secured
the
tells
Revolu¬
ACCOUNTS
par——.,
:
—
TOTAL
the
Admiralty funds in
517,936.49
$202,091,654.58
total
common,
profits
in
and
in
he
how
1,562,930.31
—
__J:-
—
CAPITAL
Undivided
(writ¬
-—$201,573,718.09
—
Reserves
Crisis"
Wars, and Winston Churchill tells
32,562,917.86
LIABILITIES
Capital stock,
Surplus
mistakes
1812,
Winston
and
ago). .Upton
years
our
tion,
34,953,481.40
;
1—.—--1——;
TOTAL DEPOSITS
10
Documents,
V^gt's "History
Vagt, of military men's backward
and
Deposits of United Slates Governments——^----—200,115.641
Deposits of States and political subdivisions
15,114,235.19
Other deposits (certified and
such
before—
Franco-Prussian, and First World
.—
Deposits of banks.-—.
of
Militarism,"
of
$117,180,037.59
partnerships,
individuals,
(Supt.
cents); Alfred
ten
„
—
deposits
corporations
that
happened
Churchill's "World
$211,701,233.71
interesting
Upton's "History of U. S. Military
Policy"
thinking
partnerships, and
leadership, here
you
Of
LIABILITIES
Demand deposits of individuals,
have
about
unimaginative
show
75
388,767.62
i—
——-
—~
-
BROADWAY
93,291,971.22
314,845.03
3,854.05
and fix. $1
——.
ASSETS
29
to
things
$10,485.27
and
,
intensely
books
1941
ASSETS
Loans
three
are
31,
etc.
demand
depressed
feel
you
brass
in the State of Michigan
Member 3
inter-
increased
movements,
car
sive
-w';
Co.
&
and
for-an. average-earnings ex¬
emption BaSis-for -ajjul'exces- V
/ •;'V'.."V.v.-.
Wm. J. Mericka
to
shortages, longshortages, diver¬
shipping,
The
in-
due
passenger
coastwise
coastal
Ohio Securities
OF
tire
truck
sion
(7)
prospective
business,
movements,
and
car
tank
REPORT OF CONDITION
"
ICC's'
the
hard reorganization proposals.
:
Cincinnati
Toledo
come
fense
cept
on
true
FPC's
which
even
program
perennial
hasn't
yet
with the 1941 de¬
acceleration
where TVA had
the hydro side.
ex¬
over-done
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4039
Volume 155
(Continued from page 415):
tuations, they have a logical place
in
his
and
living
costs have
gone
going higher and ex¬
treme price inflation is a distinct
up
are
threat.
now
To
as
costs
and
treme
increase
as
income
hedge against
a
inflation,
high-grade,
he
should
investment
ex¬
own
calibre,
"Fourth,
ous
even
full-fledged
a
does not bar
economy
specu¬
special situations—speculative
bonds
and
preferred stocks, etc.
Therefore, depending upon how
much capital he has, as well as
the degree of risk he can assume,
he may be able to take advantage
of such opportunities and profit
thereby.
}
"To sum up—without trying to
solve all the problems of the day,
an
investor
pattern
following
in
broad
such program as this
some
should make out reasonably well,
come what may.
Cash for emer¬
gencies; defense bonds for nation¬
al
security,Sand for safety and
stability
in his account; highgrade common stocks for gener¬
income and
inflation protec¬
emphasis on broad
diversification rather than selec¬
ous
tion
(with
tive
concentration);
and finally,
where circumstances permit, some
participation in the speculative
opportunities which are always
present in some form or other."
Gross
Investment Company
Chemical
The
net
assets
of
Chemical
Fund, taking securities at market
value, amounted to $7,778,182 at
Dec.
166
at Dec.
31, 1940. Liquidating
share was $8.91 per
per
Banks
direct
the
quarter
according
ended
the
to
shares of
Dec. 31, 1941
report, 28,213
the company
-v'/'.
-
•
Cash
the
close
of
dividends and stock
'■■■
$150,595.
Expenses
amounted to $16,331, leaving net
income of $134 264.
For the nine
months
ended
net income
,
.
$235,807,326.77
.
.
.
.
V
.
.
'
<
" 7
...
.
.
.
7
278.584,925.82
54,668,827.07
1
.
.
.
increase
outstanding
number
the
in
shares
Loans and Discounts
Branch
totaled
an
47
the
.
..
...
2,276,310.97
$676,804,477.57
....
LIABILITIES
per
share,
Treasurer, State of Michigan
Other Public Deposits
.
.
.
Expenses
Capital Account:
18,064,099.93
8,750,000.00
(350,000 shares)
CommonStock(l,000,000shares)
10,000,000.00
Surplus
11,250,000.00
Undivided Profits
Reserve for
31,
4,776,923.50
......
Retirement of Pre¬
ferred Stock......
1941
$636,875,853.72
,
Preferred Stock
*
Inc.—Dec.
.
.
U. S. Government
from the figure
*
.
$583,587,130.17
21,644,544.32
13,580,079.30
Commercial, Bank and Savings
'
Fund,
1,490.25
1,718,666.16
621,476.71
of
9.9% of the
income, the lowest of any
organization of the
Assets
.
.
TOTAL RESOURCES
Fund.
,
1,067,383.35
Deposits: 7
previous year.
Affiliated
101,158,070.47
........
•
since
year
16,702,892.31
.
73,810.01
amounted to
cents
increase of 7%
$ 84,381,368.15
.
Prepaid Expense 7
Liability Account of
Acceptances and Letters of Credit
notes that dividends
investment income in
from
.
...
Customers'
The report
1941
.
.
Buildings and Leasehold Im¬
provements
Other Real Estate
9.4% for the year.
paid
.
Mortgages
Accrued Income Receivable—Net
according to the annual
report of the Fund.
At the close
of 1940, net assets were $7,172,541,
equivalent to $8.66 per share on
828,255 shares then outstanding.
The
900,000.00
.
'
Overdrafts
that time,
125,000.00
.
34,901,923.50
Reserve for Common Stock Dividend
of
Affiliated
Fund
to-
No. 15
412,500.00
payable February 2, 1942
Reserves
Our
i-M.
2,337,889.38
Liability Account of Acceptances
and Letters of Credit
I
TOTAL
WRIGHT. MARTIN AND CO.
.
.
.
LIABILITIES^
pledged
to secure
SECURITIES
public und
trust
2.276,310.97
.
.
'
/ ;
$676,804,477.57
United States Government securities carried
are
MICHIGAN
at
$46,415,169.91 in the foregoing statement
deposits and for other
purposes
Members of Detroit Stock Exchange
Bell
Teletype DE 288
Cherry 3921 2066 PENOBSCOT BLDG,
;
DETROIT, MICHIGAN
tailed $18,946,229.
Net assets ap¬
plicable to capital stock, after al¬
lowing for $10,000,000 4% deben¬
tures
share
on 4,003,172 shares of $1.25
ing power; and this will be util¬
value capital stock outstand¬ ized, as stated in the special com¬
ing at Dec. 31, 1941.
This com¬ munication,
on
an
accelerated
in
further
market
weak¬
pares with net assets of $2.30 per basis
par
outstanding, amounted to
$8,149,414, equivalent to $2.04 a share
31, 1941, the
$277,667.
June
on
The
ness."
30, 1941.
of
Inc.,
which last month
a special communication
stated in
to
BENJ. D. BARTLETT & CO.
versed its
Provident
ities
Savings Bank & Trust Co.
MEMBERS
that
shareholders
on
THE
NEW
YORK
CINCINNATI
STOCK
STOCK
had
policy of selling
in
effect
year,
and
was
for
than
more
buy
EXCHANGE
ness,
EXCHANGE
Municipal Bonds
YORK CURB (Associate)
313 Vine St.
CINCINNATI
was
able
OHIO
commenced
its
in
market made
claration
Maynard H. Murch &lGo.
Investment Securities
employ
of
cash
Cleveland, Ohio
lows
war.
as
There
were
as
the market rallied at
statements
the
26%
r
show
the
The audited
composition
portfolio at the year-end.
represented approximately
having been reduced during
the month of December from 34%.
"It will be
clear, then, that we
still have substantial
I
re¬
ity Exchange, Inc., by the Board
Governors.
of
the
Mr. McKendrew is
Vice-President
of
Armand
reserve
Schmoll,
the
the de¬
presented favorable invest¬
opportunities for the use of
part of the cash which had been
built
up
earlier.
During that
month, almost $1,500,000 of our
liquid assets were thus employed,
but additional purchases were dis¬
Cash
Exchange
on
in
thus
of
Members Cleveland Stock
reserve
December
new
the turn of the year.
Building
about
ment
continued
Union Commerce
was
elected President of the Commod¬
Inc.
Floyd Y. Keeler, partner of Orthis manner before the year-end
vis Brothers & Co., was reelected
market rally carried prices sub¬
Treasurer.
stantially higher.
Governors
of
the
Exchange,
Referring to the special com¬
elected on Jan. 20 by the members
munication
to
Affiliated
share¬
(for
three-year
terms
unless
holders, dated Dec. 26, 1941, An¬
otherwise indicated), are:
drew J. Lord, President of the in¬
Commission
House
Group:
vestment company, states in his
Floyd
Y.
Keeler,
reelected;
annual
report
which
is being
Philip B. Weld, reelected; Frank
mailed today to Affiliated share¬
R. Hope, for one year, unexpired
holders:
term of Sully C. Pecot, resigned.
"In that letter we stated that
Mr. Hope is a partner of Paine,
purchases for the portfolio had
Webber & Co.
$1,500,000 of
CINCINNATI
to
Re-elected By Exchange
Edward L. McKendrew
a
market weak¬
on
McKendrew & Keeler
re¬
secur¬
beginning to
stocks and bonds
NEW
it
rallies, which policy had
been
'7,7".'. >';
•
Affiliated
management
Fund,
THE
required by law.
Member Federal Deposit Insurance Corporation
Dec.
was
;
.
•
Real Estate
Second
Fund, Inc. reports that net assets
totaled $6,641,735 at market values
on
Dec. 31,
1941, equivalent to
$7.33 per share on the 905,872
shares
of
stock
outstanding at
dends received during the quarter
totalled
'
the
divi¬
.
fully guaranteed
or
Loans:
Fund Inc.—Dec. 31, 1941
Massachusetts Investors
44,570 shares repurchased, re¬
sulting in 872,537 shares being
at
.
(
and
outstanding
period.
A
Stock in Federal Reserve Bank
••v":';''
Second
Investors
sold
were
■
Other Securities
on
Dec. 31, 1941 as com¬
pared with $9.45 on Sept. 30, 1941
During
Hand and Due from Other
Ignited States Government Obligations,
share
and $9.31 on Dec. 31, 1940.
on
.
31, 1941 as compared with
$8,397,055 at Sept. 30, and $8,144,-
value
RESOURCES
Cash
$455,880; and after expenses of
$54,934, net income was $400,946,
compared with net
income of
$336,733 for the year ended Dec.
31,1940.
: '
•
Massachusetts
•
amounted
to
gross
1941
of Condition December 31,1941
dividends
from
income
Statement
v.
.
for the year 1941 were
Reports
Fund—Dec. 31,
Complete Banking and Trust Service
Industrial
decline of 15.4%.
a
BANK
OF DETROIT
decline of 17.9%
a
Dow-Jones
the
and interest-for the year
for
I
registered
Average,
lative profit opportunities in vari¬
NATIONAL
the year amounted to 12.9%, while
Standard & Poor's 90 Stocks In¬
and
broadly
companies.
war
$5,402,243 according to the
report.
Net asset value
per share on that date was $13.5i
per share, compared with $15.51
per share on Dec. 31, 1940.
The
report states that the decline in
net asset value per share during
diversi¬
stocks
In¬
of Fundamental
annual
to industry and individual
as
assets
vestors, Inc. on Dec. 31, 1941 to¬
dex
common
fied
his
offset to higher living
an
Net
v
—
1941
talled
investment program.
"Third,
Dec. 31,
.
Inc.
Investors,
Fundamental
Investment Trusts
435
buy¬
Hide Group:
George B. Bern-
heim, reelected; Milton R. Katzenberg, reelected.
^
Silk
Alexander
D.
Walker, reelected; Douglas
Walker, reelected.
Group:
Metal Group:
Ivan Reitler, re¬
Hans
elected;
Vogelstein,
A.
reelected.
Rubber
Baird,
Group:
Jr.,
William
T.
Joseph
reelected;
Louis, elected to succeed Charles
Slaughter.
dent
and
Mr. Louis
is Presi¬
of
Treasurer
Little-
john & Co., Inc.
Non-Trade Group: Kuo
reelected.
I
C. Li,
436
THE COMMERCIAL & FINANCIAL CHRONICLE
outstanding
Our Reporter's
Reporl
urday,
a
sylvania
market
the
Electric
\
total
a
howl
Four
syndicates
be
shaping
will
of
known
are
nominal
a
affair
with
dealers
•
Co.
Bid For As Taxables
to
mortgage bonds and $3,400,000 of
preferred stock.
.
brought
Monday
heavy rush of selling, and
bond
to
with
his
into
real
a
renewed
furore
drive for
ing of tax exemption
end¬
such
on
base
issues
bids
on
went
time,
however,
for
he
far beyond anything he
for
some
these
the theory that they >
lose
ultimately
tax-free privilege.
This
po¬
inclined
were
their
would
se¬
curities.
had
buyers
their
This made
really thin; markets.
The market flattened out later
intimated
previously as
the Treasury's aim, and stated
the
sale,
banking
fairly
a
Secretary of the Treasury Morgenthau
threw
the
municipal
tential
of
by corpora¬
& Pate,
units
that
the
business
with the aid of
pointed
was
Feb;
an
trade"
but
with
the
business
that such legislation
would, if
possible, be made to apply to
or
Members
con¬
Chicago
from
New
413)
business
page
or
certain
others
further
curtailment
BOSTON
in
to
the
tax-free
obvious
Our Statement of Condition
higher.
and
U. S.
Government
State,
Due
from
of December 31,
County
pal
Other
$58,177,835.25
Securities
and
Securities
Time
Loans
chased
Bills
Buildings
Real
Estate...;.-,...
Other
Interest
for
January
Unearned
Letters
3,258,008.13
Dividend
2,
Discomt
of
Credit
....
and
Liability
of
2,378,319.87
155,282,646.67
DEPOSITS
$173,279,300.98
Under
Credit
and
Acceptances
Other
Ac¬
ceptances
665,112.89
113,759.00
364,491.81
2,289,575.34
29,482.75
Resources
So far
CORN EXCHANGE
ONAllBANRSH
AND TRUST COMPANY
1858
'
municipals,
it
alternate
the floor of the
for
Mr.
Zuckerman
Exchange
un¬
time
as
individual floor
an
Federal
Member
Statement of Condition
at
Reserve
Close
System
of Business
December 31,
1941
U.
S.
$90,505,255.32
40,929,131.05
State, Municipal and Federal Land Bank Bonds
Membership
on
news
much about
they
as
you
and I.
Stock
of
Federal
Other
Bonds
Loans
and
Reserve
and
Bank
tive
can
*
10,404.762.04
,
Bank
Premises
Customers'
Accrued
and
Other
Total
Estate
Owned
clues
Receivable
we
know
little
apar +
—J
in
Slaughter, Home &
Co. are Frederic R. Home, Philip
H. Brandt, and Guy V. Gurney.
—!
;__
Resources
Winston
that
:
the
the
market
3,330.607.37
Liabilities
The
^
13,150.00
78io72AO
L___
^
702^24
FEDERAL
****«•*
CORPORATION
Trading Department specializing in
DEPOSIT
E.
P.
CORPORATION
# v** »*.#•»»* sj 5***" a >*-■»
bad.
some*
motivating factor.
come
I be¬
from Wash¬
*
*
Last week I advised
selling
the stocks recommended here
weeks
In
ago.
so,
some
If
cases
have not
still do it.
you
can
you
you may eVen
better prices than you
could have gotten last week.
PrEBcatt.Wri qht, Snider Ca
918 Baltimore Avenue
Wheat, Cashier.
INSURANCE
is
get
Unlisted Securities
INVESTMENT
is correct.
news
war
warns
be
ington and will have a direct
bearing on business and its
corrollary, the stock market.
,
BANKER5
$233,479,271.29-
_
statement
will
13,330,607.37
__
_____
above
MEMBER
-
*
Churchill
news
lieve it will
done
—:
Interest, Taxes and Expense
Liabilities—.
is
again between hay and
4.003,000.00
_
Profits—.——
*
thing we have had so long,
that I don't think that will be
PREFERRED STOCKS
$6,000,000.00
___
Liability Account Letters of Credit—
"9
MUNICIPAL
$220,056,739.28
SurDlus
Total
!
the
But bad
$233,479,271.29
_____
Capital
Accrued
isoloo
2 679 08
LIABILITIES
Undivided
now
of telling.
way
*
6|o34.04
_
Resources—
no
4c
Meanwhile
BONDS
283 263 00
Deposits
Other
13,
___
have
whether it'
Slaughter, partner in
Slaughter, Home & Co., 66 Beav¬
er
Street, New York City, com¬
modity brokers, will acquire the
New York Stock Exchange mem¬
bership of Bernard J. Harrison on taken into
Feb. 5, his firm thereby entering
67,876,542.39
:
This
away
up,
that...whichever way the
day markets. move will be, the clue, or
good to read rather.the impetus, will come
a
surprising earnings report, from news.
Whether
this
but by the time one takes the
news will be bad or good, I
2,243,242 72
___•
Liability Account Letters of Credit
Interest
Overdrafts
Other
Real
level.
gone
#
31,619,973.69
Discounts
critical
has
be
300,000.00
Securities
minor
a
4-2727
Last Week it violated
grass.
week it
*
20,915,211.65
131,434,386.37
Dig-by
move—if
Charles
partners
Obligations, Direct and Fully Guaranteed
That
the general brokerage field. Other
RESOURCES
Cash and Due from Banks
act
to
as
report
To Get NYSE
KANSAS CITY, MISSOURI
JExports—Imports—-Futures
about in present
15., Art. I.
Mr. Zuck¬
has been in business for It's all well and
Sec.
erman
1865
*
from it; touched a resistance
supposed that such zone and backed away. Tech¬
Forming Zuckerman Co. an advantage would be help¬ nically that puts the market
That is not the case.
Paul
S.
Zuckerman, member ful.
back in a position, where, a
of the New York Stock Exchange, The
"forecasting" buying of volume break-out in either
will form Paul S. Zuckerman &
other days by what we- mys¬
direction (up or down) will
Co., 39 Broadway, New York City,
on
Jan. 31, in partnership with teriously used to refer to as
give you the direction of the
Joseph A. Esposito, who will act "they," used to give interpre¬ next move. It is
my feeling,
broker.
Established
*
of
leaves
know
is
argued
would have to adjust themselves
along the lines of other taxables.
some
(ommerceTrast (ctmpany*
*
kind
buying that
forecasts things to come is no
longer present. We have the
nicipal status would be unlikely lators
affect it seriously.
Quite the
to
reverse,
WALL STREET
NEW YORK CITY
only the occasional in¬
concerned, it is argued
change in the present mu¬ vestor and diminishing specu¬
any
der
Member Federal Deposit Insurance Corporation
99
than
SUGAR
the-corporate seasoned
as
ELPHIA.
-
/
-
The
market "is
on
Established
reason
LAMBORN & CO.
nobody knows what lies
It
$173,279,300.98
other
no
SEC to thank for that*
as
DETROIT
GENEVA, SWITZERLAND
over corpo¬
.
•
1942.,..
262,507.23
Letters
Pay"
Receiv¬
able
Customers'
.
228,669.32
able
CHICAGO
ahead.
latter
type
of
issues
might be decidedly broadened.
1,032,987.61
etc.
Reserve
7,609,000.03
24,981,761.34
that
for
with
the
2,329,035.70
Contingencies..
Taxes,
Interest,
advantages
Exchange BIdg.
others will be elimi¬
if for
rate liens removed, it is con¬
tended that the market for
$4,550,009.0!)
7,000,090.00
Profits
for
Accrued
6,909,672.24
Discounted
Bank
Reserve
15,553,170.71
Loans....,
Paper
Pur¬
....
Accrued
Stock
Undivided
5,832,331.12
11,213,573.63
Collateral
Commercial
Capital
Surplus
36,506,270.35
Munici¬
...........
Securities
Demand
such
1941
Liabilities
Banks.
But
Trade
"Exchange
Exchangee
Some dividends Will
be cut
„
as
Resources
Cash
market
reasons.
of
Cotton
PITTSBURGH
output is a virtual
certainty. Taxes will also be
stitutional investors who lean
Board
other
*
Inc.
NEW YORK
^civilian
in¬
Exchange
Exchange,
Y. Cotton
N.
take, and when it will
a head,
I leave to
to say. That there will
nated. Much of this may have
I
ment, if it comes; to pass, could been already discounted.
can't believe all of them have,
conceivably aid their business.
are
Exchange
Orleans
And
On the contrary corporate under¬
feel that such a develop¬
there
York
Commodity
writers
Now
Exchange
Curb
York
New
Whyte
Stock
Cotton
York
to
come
disturbance.
no
H. Hentz & Co,
is still ahead. What form
it will
Corporate Market
little
Established 1850
"
market
Bad
so
corporate underwriting cir¬
the
Treasury's latest on¬
slaught
against
tax-free
bonds
a
on
New'
news
cled
aroused
120 BROADWAY, NEW YORK
New
was
In
the firm
in
partner
5.;"' *
be
Broader
,
(Continued
mittees for taxation of State and
reports
Carefully
for Institutions
and Individuals
Ham¬
Says——
Without the wholesaling ar¬
rangement, it was admitted, there
might be some basis for bringing
up
the question of "restraint of
from Washington in¬ widely spread, it seemingly
dicating that there was little sup¬ the belief that basis for such
port in Congressional tax com¬ tention was removed.
on
&
Walter
ing group, more than 300 retailers
having participated in the busi¬
ness.
Orders
Executed
an
Tomorrow's Markets
sell¬
enormous
Law
was
"
out
handled
was
Inc..
limited
■
terested.
Moreover, it
and
will admit Viola T. Winmill as
if in-
group
Exchange
Gude, Winmill & Co., 1 Wall
St., New York City, members of
the New York Stock Exchange,
outside that syndicate to have
formed another
Lewis,
Commission
individual
an
Gude Winmill Admits
Power
banking
of
Stock
mond, Inc., and McAlister, Smith
group was
large
as
Greenville
in
officer
though
the
comprised
even
York
New
of the bond de¬
manager
business
in
of 81 firms, there were suffi¬
cient
as
dealer
Alabama
Members
his
partment. Mr. Lewis was formerly
bankers.
to
case
mately 102.
v
,
"Municipals, because of their tax
market
firm
in the
frequent
with
become, associated
has
But
exempt features and slim yields,
have, been going largely to insti¬
tutions in recent years, since the
average investor is. not attracted
to this type of paper.
v
Confusion Aplenty
too
securities
new
FINCH, WILSON & CO.
announced that Thomas L. Lewis
generally speaking
to
quote prices.
New
■i' there seems to be little real
City 3s, a good barometer
worry
on
that score among
of the general situation, backed
underwriters. In such circles
off about 3 points from the recent
it is pointed out that in the
high of around 105 to approxi¬
talk
and there is
up
on
York
This undertaking in¬
$32,500,000
of
30 - year
"
tions
bit
a
Washington, if single
became
sale of
Dept. For Mills
GREENVILLE,
S.
C.—H.
T.
Mills, 22 West Washington St.,
there might be a
not
or
from"
bids
reluctant
others.
volves
tendency toward,
As a matter of fact the market
is
$35,900,000
several additional groups will
be in the field.
•
no
or
recovery.
Bond
>
people in the trade have
been inclined to wonder
little
;
Here again it is expected that
at least four and quite likely
..i
Some
went
Monday
,
of bonds and preferred stock.
.
market
tail-spin
T. L. Lewis To Manage
-
Single Bid Issues
Sat¬
on
.
Penn¬
Co.
of
securities,
but there was
to reinstate positions.
urge
after
came
whether
dimensions likely to at¬
plenty of bidding.
-
local
morning and has since shown
is of the
thereafter
blast
the
but
into
(Continued from First Page)
bonds and 150,000 shares pf
preferred stock, it is pointed out,
Soon
latest
the "close of business
3%
tract
future
as
little
His
,
well
as
issues.
Thursday, January 29, 1942
Bell
Teletype—KC 262
Kansas City, Mo.
Telephone—Victor 3143
More
next
Thursday.
1
Whyte.
—Walter
[The
article
time
views
do
coincide
Chronicle.
those
not
expressed
necessarily
with
They
are
those
in
this
at any
of
presented
of the author only.]
the
as
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4039
Volume 155
credit-terms to all members of
^
exchanges.-
tor and 10% stockholders
their
transactions
in
'f
-
"The Government should not
bers
(Continued from
eral
in
and
410)
page
constructive
attitude"
which
proposed
Acts,
suspended on Dec. 8
were
resumed
were
Committee
Securities
before
the
cial
that
the
of
personnel
Securities
oppose
changes of policies which have
handicapped the financial world.
ating
Advices from its
of member firms must be
to
the
of Commerce"
on
to
say:
York
on
1 for that of the
minimum of
a
During
,
of.
-
of
segment
the
an¬
business
Securities
and
15 to
"In essence," he added, "Amer¬
ican business
customer, with
men
only op¬
with the utmost vigor pro¬
posals for the selfish benefit of
can
pose
v
there have
Mr.
city's Stock Ex¬
changes where these would be
of
Davis said, and over a period of
several years
98.182% of the
at the expenses of industry."
The Securities and Exchange
1933
urged
4
an
and
1934,
Mr.
Fleek
amendment to section
(a)
commission
from
five
the New York
on
sol-
remained
:
•
criticized
Davis
Mr.
a
Municipal:
James : Muss on,
- Frederick
M. Grimshaw, Barr Bros. & Co.; Jack B.
Hanauer,' J.- B. Hanauer
Co.;
Commission
has
approved
information
the
Walter
Mewing, D'Assern, O'Neil
& Co., Inc.
pro¬
scheduled
Forthcoming
are:
ings, but has not indorsed the
suggestion to extend application
detailed
of the proxy rules or reporting
$15,000, and provide for retire¬
regulations regarding everyday
ment pay at 70 years.
functions.
requirements to securities hav¬
ing
an
interstate
over-the-
from
five
ten
to
years
Mr.
since
Commission
Fleek emphasized
that
June, 1934, 14 men have
"Such power could
the
been appointed to and have held
office in the 5-man commission,
and this does not take into
con¬
changes which are
pending. He added that a
larger, more permanent com% mission, particularly if it were
departmentalized, "would prob¬
ably operate to permit the com¬
them-
thoroughly with the
problems arising under the vari¬
ous acts assigned to them." J V
v
5-man
commission,
Mr.
Fleek said, cannot properly ad¬
minister
the
Securities
Ex-
change Acts, plus the Public
M Utility Holding Company Act of
1935, Chapter X of the Bank¬
|
He
i
that
most shocking
attempt
legislation on behalf of
interest."
Press
Committee
nancing,
applicable
ties
of
the
as
on
the
not
registered
interstate
market
6
13,
given
page
in
these
1038
Co.
York,
York Stock Exchange and other
leading national exchanges. Fred¬
erick W. Thoben, also a partner in
the Swan firm, will also become
associated
with
E.
F.
Hutton
Mr.
Swan's
admission
to
New
York
and
on Feb. 11th at New
York; the annual winter dinner,
April 17th.
There
tion
is
Aires.
not
The
active
first
at
two
an
important
ques¬
coming
up in reference to
Stamps; the Association
Committee is already at work on
the
situation and will present
report to the members shortly.
a
Aires
nos
Mr.
office
Swan,
will
continue.
pioneer
American
broker in the Far East and South
America,
Swan,
also interested in
&
Co.
in Tokio,
was
Devin
which closed in 1932 when
ese
exchange control
made
business
*
:
only
to
securi¬
national
on
ex¬
or
over-the-counter
securities of corpora¬
com¬
impossible. Swan,
Culbertson & Fritz, for years the
largest factor in Far Eastern busi¬
ness
in
tered
American
the
South
securities,
American
N.
Buffalo troducing
Y.—Arthur
Bierma has opened offices
G.
at 730
Ashland Avenue to conduct
a
se¬
curities business.
South
E.
American
capital
Hutton
&
Co.
doing business since
Schoonover, deWillers & Co., Inc.,
Chairman, and the three honorary
members, Eliot Sharp, Herbert
Seibert, and Louis Walker.
Auditing: John Reilly, J. F.
Reilly & Co., Chairman; Oliver
Kimberley, J. K. Rice, Jr. & Co.;
Another proposal assailed by
Jones
would
extend
to
or
handled
are
whose
in
CONDENSED
has
STATEMENT
FIRST NATIONAL BANK
an
securities
interstate
over-the-counter market the
re¬
R.
IN
At the Close
ST.
LOUIS
of Business, December 31,1941
RESOURCES
Loans and Discounts
$ 81,768,771.84
76,068,042.26
.
U. S. Government Securities
Other Securities Guaranteed by U. S. Government
Other Bonds and Stocks
,
Stock in Federal Reserve Bank
Reception:
27,632,578.59
8,965,909.89
441,000.00
Banking House, Improvements, Furniture
476,298.24
-
Other Real Estate Owned
Customers' Liability
1,640,272.11
a/c Letters of Credit,
Acceptances, etc.
702,052.28
Accrued Interest Receivable
552,835.48
Overdrafts
11,218.62
Other Resources
-
Cash and Due from Banks
5,568.77
143,870,756.11
?
Mitchell, David R.
$342,135,304.19
Mitchell & Co.
Mr.
commerce
David
James
McGivney,
LIABILITIES
Hornblower
& Weeks, Chairman;
Bowyer, Schwabacher &
Co.; Henry Bruns, H. G. Bruns &
Co.; Stanley Eaton, P. J. Steindler
& Co.; John French, A. C. Allyn
Frank
Capital—Common
$ 10,200,000.00
Surplus and Profits
9,795,982.85
Dividend Declared, Payable
February 28, 1942
240,000.00
Reserve for Taxes, Interest, etc.
233,872.86
Unearned Discount
233,305.93
Liability a/c Letters of Credit, Acceptances, etc.
quirements that officers, direc¬
725,983.81
Other Liabilities
Individual
and
1,511.11
$162,660,444.65
Deposits
Savings Deposits
Municipal Bonds
31,526,046.84
118,647,127.56
156,209.67
Bank
Deposits
Government Deposits
City of St. Louis and Other
Public Funds
7,714,818.91
Total
BOND
Deposits
320,704,647.63
$342,135,304.19
DEPARTMENT
MereantileCommeice
Bank and Trust
Locust
Company
Eighth~ St. Charles
St.Louis
* ?
Broadway
CORRESPONDENTS
14 Wall St.
SAN FRANCISCO
235
Montgomery St.
CHICAGO
KANSAS CITY
135 So. LaSalle St.
1004 Baltimore Ave.
has
a
Member Federal
'
Locust
*
into
Olive
Deposit Insurance Corporation
been
1904 under
its original name.
and Fixtures
en¬
field
America.
F.
tion of New
and
companies engaged in interstate
NEW YORK
Japan¬
restrictions
corporate affiliate engaged in in¬
Arthur Bierma In
BUFFALO,
are
due to the
about three years ago, and
STANY Appoints 1942
re¬
F.
E.
offices
present
1336 and 1338.
The
&
Co., taking over the work of en¬
larging its research and advisory
departments. '
association's
merce.
fact
State
which
31, will be
admitted to partnership in E. F.
Hutton & Co., 61
Broadway, New
York City, members of the New
and
Security Traders Associa¬
York, Inc., announces
the appointment of the following
industrial fi¬
standing committees for the cur¬
House Inter¬ rent year:
New
tions engaged in interstate
singled
better jobs.
Ex¬
Nov.
Standing Committees
of
changes, but also to those having
turnover, and added that prob¬
Testifying in favor of some
proposed amendments, Mr. Pur¬
cell s^id that the Government
should
grant, more favorable
&
Jan.
Associated
that the proxy section be made
Mr. Purcell replied that he did
know
the reason for the
out for
Curb
our
Arrangements: Allen Moore, H.
hearings
on
approxi¬ Hentz & Co.,
Chairman; James
mately 80 changes in the 1934
Musson, B. J..Van Ingen & Co.,
Securities
and
Exchange Act Inc.;
Frank
Pavis,
Chas.
E.
proposed by the securities in¬
Quincey & Co.; Gustave J. Schlosdustry.
ser, Edward
A. Purcell & Co.;
The
William T. Schmidt, Laird,
industry
has
recom¬
Bissel|
mended changes in proxy rules & Meeds; Robert
Strauss, Strauss'
to require that issuers submit Bros.;
Joaquin Titolo, Harris, Upto
security holders
prior
to ham & Co.; Walter Saunders, The
meetings, the information re¬ Dominion Securities Corp.
quired by the proxy rules and
Publicity:
Chester
deWillers,
not
the
class
special
Commerce Committee
state
an
are
the
in
sumed
,,
was
at
a
expressed by
were
sub-committee
:•■/ ter jobs.
reason
the
Jones
Chairman
William
P.
(Dem., Md.) inquired of
Mr. Ganson Purcell, SEC com¬
missioner, the reason for the
almost unprecedented'turnover
in the commission, and said that
apparently Federal appointees
were
using the
Commission
merely as a springboard to bet-
one
were
Nov.
Dec. 4, page
quote:
Frayser
Representative
ably
we
From
The views
presented charts to prove
the ; commissioners
are
that commissioners
Exchanges, part¬
Swan
on
serious threat to business and the
Cole
.
of
page 924.
Other references
the hearings before the House
columns
the proxy proposals of the securi¬
ties
industry to be "the most
the Trust Indenture
overworked.
Rea
appeared
of
issue,
to
ciation of Manufacturers declared
change
Act,
the
Investment
Companies Act of 1940, and the
Investment Advisers Act of 1940.
»
same
reference to the views
President
change
On Jan. 22 the National Asso¬
provisions of the Securities Ex¬
<
Earlier
borrowing and lending
important
functions
and
should not be handicapped.
Act of 1939, dealers' registration
•.
of
and that
ruptcy Act of 1938, the Maloney
Act of 1938,
the
day (Jan. 22)
Frank
Dunne, President of the
New York Security Dealers' Asso¬
ciation, spoke in opposition to the
suggestions
of
the
Exchange.
are
,
between
State Tax
On
more
The
i
counter market.
handicap
business,"
done for out-of-town customers,
*
to familiarize
honest
borrowing and
lending, Mr. Davis said that 90%
of
borrowing of securities is
Speaking
sideration
selves
of
course
he added.
now
missioners
make
to
E.
dissolve
Japanese occupation, but the Bue¬
activities already
Inter-City Bowling
Philadelphia,
office
Curb
&
match
years, increase
each commis¬
sioner's salary from $10,000 to
will
J.
Harry Peiser, John B. Car¬ Hutton & Co. will not affect his
Co.; and Roger Phelps, interest in
Swan, Culbertson &
Campbell, Phelps & Co..
.* ••
Fritz,
originally
organized * as
Swan & Culbertson in 1926, which
Bowling: Wilfred Conary, B. W.
maintains
Pizzini & Co., Chairman;
brokerage
offices
in
Welling¬
ton Hunter, Hunter & Co.; and
Shanghai,
Manila
and
Buenos
roll
mitted to holders prior to meet¬
extend the tenure of
in
& Co.;
posed amendment which would
give big legislative power to
the Commission, permitting the
members,
r
John
Chairman;
proposal that
re¬
quired by proxy rules be sub¬
Vvent.
nine
to
failures
no
Exchange,
have
members
of the 1934 Act which
would increase the size of the
been
York
New
-
Exchange Louis Lebenthal, Lebenthal & Co.;
James Maguire, James A. Maguire
In a hearing on amendments
to the Securities Exchange Acts
the
Legislation:
Commission regulations."
$50,000."
,v ,
past three years
the
busi¬
community had felt the weight
sound basis, because
"liquid capital
a
fact that
t
"Journal
reporting this, went
,
of the
the
of
Washington bu¬
New
other
said that mem¬
exchange are oper¬
bers
medium-sized
enterprises just because
ness
Stock Exchange,
sioners sometimes has resulted in
reau
American
Vice-President of the New York
Exchange Commis¬
Stock and
ners
-
Davis, Executive
S.
Howland
tornover
Joseph E.. Swan and George R.
Kanztler, member of the New York
.
Tax V and
that any spch proposal had been Laver, R. F. Gladwin & Co.; P.
Fred Fox, P. F. Fox&
Co.; T.
formally 'submitted
to
Con¬
gress." ''4;-'A:;>V;j■''f^ Frank Mackessy, Abbott, Proctor
Mr. Jones said he could see & Paine; Fred W. Preller, East¬
"no
possible. justification for man,- Dillon & .Co.; and Willis
casting unjustified burdens on Summers, Hoit, Rose & Troster.
Purcell said.-
Mr.
and
pre¬ Co.;
John J." O'Kane, John J.
"any submission O'Kane, Jr. & Co.; and Wilbur
to American
businessmen," and Wittich, Bond & Goodwin Incor¬
"in fact we have known of a
porated/' '''< ; V'' ■ '
V"•' *'
*/'.
■
%
will
commission
E. F. Hutton Partners
"devised
was
number of industrial executives
who were astonished to learn
proposed amendments extend¬
ing special benefits to members,
body warned the committee
that
/
Swan & Kantzler To Be
Charles King, Charles King & Co.;
Thomas* A. Larkin, TJoodbody &
sented" without
favored
to
1-V.
public."-
The
Association, speaking for
fast
pro¬
posal
are
said.
bad reaction on
a
the
20, at which
time John S. Fleek, of Cleveland,
Ohio, President of the Investment
Bankers'
facilities
credit
members has
House
Jan.
on
Purcell
to give members more
the
on
they
because
Mr.
"Exchanges still have the desire
favorable
treatment than the public.
Spe¬
administering the law.
The hearings
changes in the
merely
members"
report &
Co., Inc.;' John Kassebaum,
equity Winthrop,
Whitehouse
&
Co.;
securities of their
companies.
Mr. Jones charged the
give favored treatment to mem¬
437
Flotations;
Calendar of New Security
OFFERINGS
'
■
STORES
CORP.
of
shares
stock
common
will be
to
offered
standing
Corp.
filed
registration the public, in units consisting of one share
statement with SEC for 20,000 shares ofof
preferred and one .share of common
6% cumulative convertible preferred stock, stock, at $14 per unit.
Underwriting comand
shares
60,000
value
parmission is $2.10 per unit. Remaining 40,000
$1
shares
,
Address—519
„
stock,
common
.
jNew
Eighth Ave.,
women
•
apparel stores, located
Georgia,
North
and
for
reserved
are
Proceeds will be added to working capital
Florida,
Registration Statement No. 2-4915. Form
Carolina, Ala-S2. (12-17-41)
South
and
Virginia.
stock
common
issuance upon the conversion of the pre-
ferred stock
°pera^es a chain of 25 retail
s
bama
York City
f
_
m
Company
manufacturing
does
no
•'
Effective
12:00
March
.
,
.
Following is
list of issues whose registration state¬
a
ments were filed less
than twenty days ago.
These issues
grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.
These dates, unless otherwise specified, are as of 4:30
are
P.M. Eastern Standard Time
ing.
Illinois
3%%
bonds,
of
no
due
TRUSTEED
ESTATES
OREGON
OF
Trusteed Estates of Oregon
tration
statement
with
filed
the
stock
offering
regis¬
a
for
SEC
a
price
writers
will
Offering—The
and
will
be
and
be
offered
to
$5
of
500
Periodic
Payment
Agreements
*
Business
Company
—
is
investment
an
Proceeds
of payments made by in¬
Agreements, and dividends
and earnings realized thereon, less author¬
ized deductions, will be used by company
to purchase shares
of Selected American
Shares, Inc., a registered investment com¬
vestors
pre¬
public;
the
These
the
management
shares
will
open-end type.
deposited in the cus¬
be
tody of
to
'
the Title and Trust Co..
Custody Agreement
a
pursuant
Underwriting
and
Offering 7— Periodic
Payment Plan Agreements will be issued
calling for the total payment of $1,800,
$4,500, $9,000, $13,500, $18,000 or multiples
thereof by the
purchasers and the rein¬
vestment
of
dividends
total
The
on.
and
earnings there¬
aggregate offering
price of
the units to be embraced in the agreements
registered is $900,000 plus reinvestment of
dividends, the amount of which is unde¬
terminable.
by
the
used
E.
restore
cash
working
Registration Statement No. 2-4933. Form
(1-24-42-Cleveland)
The Agreements are sponsored
depositor
Proceeds
will
purposes
be
used
for
investment
7.,-77
'
OF OFFERING
UNDETERMINED
5
We present below a list of Issues
whose registration statements were filed
days
twenty
offering
mined
or
not
PAPER &
but
been
to
unknown
are
CHAMPION
ago,
more
have
dates
or
whose
deter¬
us.
"
FIBRE CO.
Champion Paper & Fibre Co. registered
SEC
$8,500,000
of
first mortgagf
with
bonds,
due
filed
be
1,
Nov.
(interest
1950
U
rate
by amendment); 40,000 shares $f
convertible preferred stock, nc
cumulative
and
par;
shares
indeterminable
an
of
number
oi
stock, to be re¬
served for Issuance upon conversion of the
preferred stock
v
Address—Hamilton, O.
Business—Largest domestic manufacture!
of the types of paper known in the trade
as
white papers and book papers, and It
one of the largest domestic manufacturer!
no
par
Co.
Registration Statement No. 2-4930. Form
(1-13-42)
7':7;
,
i
TUESDAY, FEB. 3
common
TRUSTEED
ESTATES
OF
WASHINGTON
Trusteed Estates of Washington filed
registration statement with the SEC for
maximum
of
Periodic
667
Payment
a
a
Plan
Agreements
Address—Seattle, Wash.
Business—This
trust
investment
issued
"agreements," under which the proceeds of
payments made by the investors, and divi¬
dends and earnings realized thereon, less
authorized deductions,
chase shares
Inc.,
American
investment
management
shares
will be used to pur¬
Selected
registered
a
the
of
open-end
Shares,
of
company
type.
These
will be deposited in custody
of the Seattle Trust & Savings Bank, Seat¬
tle,
are
and
Wash., pursuant
ment
to
custody
a
agree¬
of coated papers
Underwriters
$8,660,000 of
sinking fund debentures ($4,125,000 prin¬
cipal amount due 1950, at 1041/2l $4,535,000
principal amount of the 1938 Issue at
102 Vi),
requiring $8,947,663.
Balance oi
net
proceeds will be
added to working
capital
VV •
''' ■ 7V7 :7:77
Registration Statement No. 2-4867. Form
A2.
SEC
call
for
the
total
payment
of
$1,800,
$4,500, $9,000, $13,500, $18,000 or
multiples thereof by the purchasers, and
the
reinvestment
dividends
of
and
earn¬
of
aggregate
(10-25-41)
has
Filed—Company
Amendment
filed
names
In
amendment
the
is
the
amount
undeterminable.
The offering
of
underwriters
the
:
poses
■
v
;
77777
1;
each,
Registration Statement No. 2-4931. Form
CI
(1-15-41)
of
(all
follows
as
FEB.
City,
York
New
Prln. amt.
\
No. of she.
of bonds
ofpref. stk
8,000
:
W. E. Hutton
& Co—$1,700,000
1,700,000
&
S. Oickson
R.
8,000
127,000
600
425,000
Goldman, Sachs & Co.
2,000
Co._
Drexel & Co., Phila
TUESDAY,
bond*
the
unless otherwise indicated);
is sponsored
.■
for
preferred
stock,
together with the
of
each
issue
underwritten by
and
by the depositor
Proceeds will be used for investment pur¬
10
Cincinnati
First
85,000
Boston
1
Harriman
tion statement with the SEC for $1,000,000
of 15-year Sinking Fund Debentures, due
Hemphill,
Noyes
255,000
1957.
Johnson,
Brothers Co. has filed
Interest
amendment
a
registra¬
rate
the
to
will
be
supplied by
registration statement.
Underwriting—Principal
underwriter is
Lynch, Pierce, Fenner & Beane;
Merrill
others
Hornblower
Co._
Weeks
&
will be
named
Offering—Public
price
the
of
Debentures will be supplied by amendment.
Proceeds will be applied toward the pay¬
ment of
Registration Statement No. 2-4932. Form
(1-22-42-Cleveland)
t ;; 7
1,600
85,000
3,600
7 4,000
1,600
ING
ELECTRIC
Manufacturing Co. filed
registration statement
shares
of
ferred
Stock,
shares
of
latter
$5
to
exercise
MANUFACTUR
&
CO.
Reliance Electric
of
preferred
no
common
be
with
Cumulative
par
stock, $5
reserved
the
SEC
for
conversion
sale
and
850,000
340,000
C.
Langley & Co._
Lee
Higginson Corp..
Piper, Jaffray & Hopwood,
511,000
Minneapolis.
Pre¬
Amendments
and Jan.
filed
Hamilton
Watch
ard
9,
Dec.
27,
1941
defer effective date
of
electric
filed
registration
watches
32,054
a
Registration Statement No. 2-4866. Form
'
(10-24-41)
A2.
Amendments filed Nov.
Jan.
and
2
26, Dec. 15, 1941,
TELEPHONE
CO.
statement
stock, voting, $10 par value
Address—Sixth and Crumley Sts., Bristol,
shares common
4%%
preferred stock
to
privilege
33,054
of
the
of
preferred
exchanging
39,382
on
basis of
such
shares
one
of
share
4ft ft
preferred stock, plus $1.50 (equal
current
quarterly
dividend
payable
March
6%
the
1,
1942,
preferred
amount
on
its
Finance
Corp.
now
Merchants &
Manufacturers
It is present intention of
by
Securities
Co.
of such shares either
to dispose
company
exchange for or to utilize the proceeds
the sale thereof for the purchase of
in
of
participating preferred stock of
the company
7
Registration Statement No. 2-4912. Form
A2. (12*12-41) '' "f
^x
Amendments filed Dec. 27, 1941 and Jan.
of
shares
to defer effective date
Statement withdrawn
1942,
13,
Co., Atlanta, Ga.; R. S. Dickson
Co., Inc., Charlotte,
N. C.; Minnich,
Wright & Co., Inc., Bristol, Tenn.
Offering—The 25,000 shares of common
stock will be offered to the public, at a
who
to
are
of
stock, $10 par, of company, at a price to
be supplied by amendment (20,665 shares
of such preferred
to be sold by former,
4,335 shares by latter). Underwriters agree
that immediately following delivery to them
of such shares of preferred stock, each will
convert same, share for share, into a total
of common stock of com¬
the under¬
received by
will be
(12-6-41)
defer effective date filed
1941 and
22,
Jan.
UTILITIES
SOUTHERN
77:.7.
9. 1942
CO.
;
OF
Southern
Co.
of Del. has
a
registration
for
$10,000,000
first
la.
Business—Principal business of this pub¬
lic
utility
operating
company
Is
that of
distributing and selling elec¬
for light, heat and power,
134 communities at retail in 24
in the southern and southeastern
one
share
energy
serving
counties
Also, manufactures and
to several communities
well as steam heat
Underwriters—W. C. Langley & Co., New
of
parts
Iowa,
artificial
sells
in that
area,
gas
as
Stuart & Co., Inc.,
principal underwriters;
the names of the other underwriters will
be furnished by later amendment to the
registration
statement *
Offering—The bonds and debentures will
be
sold
to
the
public, at prices to be
supplied by amendment to the registration
York,
Halsey,
and
outstanding
stock),
plus
an
unstated
(difference between the public of¬
statement
Proceeds,
the
together
with
other funds of
will be used to redeem the
issues
of bonds of the com¬
company
following
pany:
$10,000,000
first
mortgage 4s,
due
Columbia
to the redemp¬
applied
be
from
of all the
Electric Corp.
&
Gas
the purchase
to
stock;
preferred
securities (stock and debt) of
outstanding
Gas
Transmission, Corp.
and
Distribution Co.; to purchase
Michigan
Gas
Indiana
(12-24-41) i
1942
of
as
-
TOOL
"
MFG. CO.
Manufacturing
Co,
:
value
the
tools for
service
by the automotive industry ,777;
Underwriters—Baker,
Simonds
&
Co.,
use
is
principal underwriter
the
named
remaining 67,917
already issued and
outstanding,- and will be sold to the pub¬
lic for the account of certain selling stock¬
holders.
The public offering price is $4.20
the
company;
shares
registered
per share
Proceeds
-
1972, and 34,000 shares Series A
preferred stock, $100 par. The
1,
rate
the
on
plied
will be used for the purchase
Address—222
Registration Statement No. 2-4920. Form
Cleveland)
Amendments
filed
1
.
10
Jan.
and
Jan.
26,
1942 to defer effective date
Natural
Northern
shares
710,500
Address
—
Nebraska
-
CO.
GA8
NATURAL
NORTHERN
Co.
Gas
reglstereo
of common stock, $20 pal
Aquila Court Bldg., Omaha
\
'
7777 '
77-..
Business—Production
transmlsslor
and
of natural gas
7 ' Underwriter—Blyth & Co., and otheri
to be named by amendment
Offering—Stock will be publicly offered
at price to be filed by amendment
Proceeds—All proceeds will be received
by selling stockholders, United Light &
Railways Co., and North American Light
and Power Co.
77.
.
(4-21-41)
Natural
Northern
to
amendment
of' shares
stock
lic
been
to 355,250
ment,
are
and
Its
Its
proposed to
has
by
of
Gas
Co.
filed
an
registration statement
par
value common
$20
be offered to
reduced
from
the pub¬
710,500
sharer
shares. According to the amend¬
355,250 shares are those that
such
presently
owned,
and
outstanding,
North American Light & Power Co.
are
to be offered to public for tht
account
of
American
Light & Power Co
shares orglnally
1941
for public offering,
and withdrawn from
registration were subsequently registered
The
355,250
additional
registered with the SEC on April 21,
and became effective.
tuted
the
These shares consti¬
stock outstanding
and owned by
Light & Railways Co., a subsidiary
of United Light & Power Co.
United
PANHANDLE
EASTERN
PIPE
LINE
CO.
Eastern Pipe Line Co. filed
statement with SEC, for $10,000,000 first mortgage and first lien series
"C"
3%
bonds,
due Jan.
1,
1962, and
150,000 shares cumulative preferred stock,
$100
par
value.
Dividend rate on the
preferred stock will be supplied by amend¬
Panhandle
registration
ment
will be sup¬
registration
-
Levergood
Business—This
Johnstown,
St.,
controlled
company,
Associated
of
Trustees
by
Electric
&
Gas
Corp., Is engaged chiefly in the production,
purchase,
distribution
and
for lighting, heating, in¬
transmission,
of electricity
sale
dustrial and general utility purposes,
ing
serv¬
Western Pennsylvania
the Md.-Pa. State line
territory
from
a
in
extending
northerly to Lake Erie
7
,
7.
and Offering—The bonds
preferred stock will be sold by com¬
pany under competitive bidding rule U-50
Underwriting
and
of
Public
SEC's
Act.
Utility
Holding
Company
Names of underwriters and public
offering prices will be supplied by amend¬
:
ment
to
registration
bid
to
vitations
The In¬
specify
statement.
the
for
securities
that
the
company
•than
103
for the bonds and not less than
Proceeds
is
receive
to
will
be
used
all
redeem
to
debt
funded
outstanding
less
not
stock
the
of
of
com¬
and
Registration Statement No. 2-4929. Form
(1-9-42)
7 ,7 ..
A2
CORP.
DISTILLERS
Distillers
filed
Corp.
with
statement
tration
the
SEC
regis¬
a
for
$10,-
10-year sinking fund debentures,
Jan. 1, 1952, and $17,500,000 15-year
000,000
due
sinking fund debentures, due Jan. 1, 1957.
Interest rates will be supplied by amend¬
ment to registration statement
Address—350
Fifth Ave., New York City
Business—Company and its subsidiaries
engaged generally
in the distilling,
blending, rectifying, producing, warehous¬
ing, bottling, buying, selling, exporting and
importing alcoholic products for beverage
purposes, principal business being produc¬
tion and sale of rye, bourbon and blended
•
are
the
in
United
States
Underwriting—Mellon Securities
Corp.,
Pittsburgh,
is
named
principal
under¬
writer; names of others wiii ue supplied
by amendment
to
Offering—The debentures Will be offered
the public, at a price to be supplied by
amendment
Proceeds
together
be
to
from
with
sale
the
of
bank
prior
un¬
loans
to
or
concurrently with the issue of the deben¬
tures, will be applied to payment of all
the
present
bank
loans
of
company.
Amount of
such
bank loans outstanding
Aug. 31,
on
by
debentures,
proceeds
short-term
of
procured
of
net
the
amount
stated
company
1941, was $24,000,000
2-4925. Form
77777\77y7 >7\''77'^777
Registration Statement No.
A2.
.
A-2,
the
to
7
Pa.
whiskies
capital
(12-26-41
stock,
preferred
amendment
by
statement
the
are
machinery and equipment and for work¬
ing
1942
first mortgage bonds, due
$32,500,000
Schenley
in
12,
interest rate on the bonds and the dividend
Mich.
engaged
1
21,
Jan.
on
cumulative
SCHENLEY
Business—Company is
manufacture and sale of
E.S.T.
E.S.T. Jan.
Pennsylvania Electric Co. registered with
has
registration
statement with the
for 92,792 shares of common stock,
par
v
,
a.m.
p.m.
Erie Lighting Co. and for prop¬
erty additions
77 7. ••
a
SEC
$1
&
&
Tool
Miller
filed
<
4:45
PENNSYLVANIA ELECTRIC CO.
SEC
the
Registration Statement No. 2-4741. Form
Utilities
A
will
the company's outstanding class
of all
tion
pany
of
Tenn,;
amendment Svv7;7 -777;:7;7,7;'
by
7 Proceeds
Jan.
Registration
&
Nashville,
Act of 1935. Names of underwriters
public offering prices, will be
the
•
supplied
$100 per share for the preferred
Courts &
Corp.,
and
preferred stock
of
.
Offering—24,875 shares of common stock
will be sold to the public for the account
Securities
able
will
The remaining
not required for 7
such exchange offer, together with all of
the bonds, will be sold by company under
competitive bidding, pursuant to Rule U-50
of the SEC's Public Utility Holding Com- ;;
shares
Jan.
Domestic
of
stock
owned
Address—Detroit,
timore; Mason-Hagan, Inc., Richmond, Va.;
Stern, Wampler & Co., Inc., Chicago; Equit¬
be supplied by amendment.
Effective—11:45
&
in.
■
Business—Through
Tenn.
Business—Supplies telephone service in
portions of Virginia and Tennessee
Underwriters—Alex. Brown & Sons, Bal¬
their
waived
not
the subscription price
stock;
common
CO.
Manufacturers Securities
Co. has filed a registration statement with
the SEC for $1,081,000 of 10-year 4ft ft
debentures, due Sept. 1. 1950
;
77
Address—231 South La Salle St., Chi¬
MILLER
Telephone Co. filed reg¬
with SEC for 25.00C
Inter-Mountain
istration
have
who
preemptive rights to subscribe for the new
preferred stuck;, at the rate of one share
of
the preferred
for each 5Va shares of
A2.
MANUFACTURERS
&
SECURITIES
Merchants
22, 1942
INTER-MOUNTAIN
„
shares of its outstanding
63,566
stock
common
pany
each
units
MERCHANTS
1942 to defer effective
Jan. 21,
date
Chicago, are named
women
of outsanding 6%
upon
generators
for
Offering—Company is
conditional offer to holders of its
shares
for
motofrgenerator sets, mine motors, etc.
wrist
Underwriting and
making
of
motors,
and
plant and prop¬
to company's
and for other corporate purposes
erty,
trical
Co.
of
manufacture
stock,
to make additions
Telephone Co.,
betterments
Address—Centerville,
preferred stock, $100 par
Address—Lancaster, Pa.
Business
Company manufactures and
sells various models of high grade
(17 to
23 jewel)
pocket and wrist watches for
and
7 - - -.
shares Registered,
cago,
statement with the
mortgage 3 ft ft
bonds, due Dec. 1, 1971, and $5,160,000 of
4ft ft sinking fund debentures, due Dec. 1,
1971
7
J '
statement with SEC for 39,382 shares 4ft%
men
the
offered
be
tools,'machinery and equipment.
Registration Statement No. 2-4844.
^
generating,
stock
the
12,000
,
purchase from General Telephone Corp
the outstanding capital stocks of Centra)
Illinois Telephone Co. and Illinois Stand¬
SEC
1,600
Dec.
1942, to
13,
stock
privilege of
;
preferred
$6
filed
600
340,000
the
stock.
shares
>!
DELAWARE
2,400
127,000
White, Weld & Co.
7,500
37,500
par value,
issuance
Address—Cleveland, Ohio.
Business—Engaged in the
and
for
Convertible
value;
1,108
share;
Iowa
—
RELIANCE
$2,875,000
owned by parent company, at latter's cost
Balance of net proceeds will be used tc
400
765,000
cumulative
THURSDAY, FEB. 12
pfd. stk,.
company
14,000
will
stock
holders of
subsidiaries, is
New York
2,156,000
9,000 7 engaged in the small loans business :'v
Mitchum, Tully & Co.,
: •
Underwriting and Offering—The deben¬
Los Angeles
^19,000. 3,000
tures are outstanding in the hands of the
Offering—Bonds and preferred stock to public and have been registered with SEC
under Securities Act of 1933 solely for the
be offered to the public at a price to be
purpose
of obtaining the assent of the
supplied by amendment to the registration
holders
of not less
than a majority in
statement
7-7 '
7-7
■
v
principal amount thereof to modify cer¬
Proceeds
from
sale of the bonds and
tain
provisions of
the indenture under
preferred stock, together with $105,000 re¬
which
the debentures have
been issued.
ceived from sale of 7,000 additional shares
common stock,
will be used in part to re¬ Smith, Burris & Co., Chicago, is to assist
company in obtaining such assents. Major
tire following securities of company: $5,modification of Indenture being sought is
750.000
First
Mortgage
Series
A
3%%
to permit release from covenants thereof
bonds, due June 1, 1970, at 105ft; 17,098
of not to exceed 62,484 shares of common
shares
$6
preferred stock,
at $110 per
Dec.
HAMILTON WATCH CO.
A2
Shs. of
Bonds
Webber & Co.,
Paine,
Amendments to
all outstanding bank loans of the
company.
-,
York
New
IOWA
Kidder, Peabody Co.,
Kuhn, Loeb & Co.
by amendment.
offering
Amt. of
Bonbright <& Co., Inc.,
A2.
2,000
340,000
Lane, Space
& Co., Savannah
W.
Address—Cleveland, Ohio.
Business—Operates a chain of retail food
stores.
and
Registration Statement No. 2-4908. Form
1,200
Fisher
of bonds
writers
2,000
CO.
,
No. of
pany
Proceeds
400
425,000
425,000
BROTHERS
amount
77v:
of 25,000 shares
Field, Richards & Co.,
Corp
Ripley Co.
FISHER
and
by
and
Offering — Approxi¬
shares
of the preferred
for subscription to
Underwriting
mately
,
-
the * production,
in
V; from Ohio Fuel Gas Co. of natural gas
Form pipe lines in Indiana and Ohio; and the
A-l.
(9-17-411
balance to pay part of the cost of author¬
Effective—4:45 P.M., E.8.T., on Oct. 8
ized construction work
1941 as of 4:45 P.M., E.S.T., Oct 8, 1941
Registration Statement No. 2-4919. Form
of
S2.
the agreements registered with the SEC in
this statement is $1,200,000 plus reinvest¬
dividends, the amount of which is
engaged
Virginia, have agreed to sell to above
underwriters, a total of 25,000 shares oi
6ft
non-cumulative convertible preferred
disclosed
Also
-7
unit consisting of on»
share of preferred and 10 shares of com¬
mon stock, at price of $140 per unit.
Re¬
maining 64,531% shares common reserved
for issuance on conversion of the preferred
Proceeds for working capital, purchas*
in
lic
of
reg¬
the
annum.
per
7
th«
8,453ft shares of preferred and 64,531%
shares of common, will be offered to pub¬
acquire such shares as follows:
Southern Bell Telephone & Telegraph Co.
and Chesapeake & Potomac Telephone Co.
its
at
defer
to
CORP.
AIRCRAFT
Offering—Of
The public offering
price of the bonds and the preferred stock
will be supplied by later amendment
3 ft ft
ings thereon.
The total aggregate offer¬
ing price of the units to be embraced in
ment of
Springfield,
offered
price to be supplied by amendment to reg¬
istration statement.
The shares are to be
SEC
the
Interest
bear
1942
7 77 7
registered with
SEC
6.453Va
shares 6%
Non-Cumulative
Convertible Preferred Stock, $100 par, and
129,063 Mi shares common stock, $1 par
Address — Lambert-St.
Louis Municipal
offered for the account of the underwriters,
would
14,
Jan
;
McDonnell Aircraft Corp.
the
bonds
to
disclosing ' that
with
statement
istration
date.
MCDONNELL
rate oi
amendment
an
the
Co
&
the out¬
to redeem
Proceeds will be used
;
Underwriting and Offering—The Periodic
Payment Plan Agreements registered with
Hutton
E.
W.
and Goldman, Sachs & Co., both of Nev
York, N. Y.
Offering—The bonds and preferred stock
will be offered to the public, at prices tc
be supplied by amendment
• t>77'!7;7
standing
filed
Amendment
effective
7'7sy77:''"7:
7:7
are
St.,
subsidiary
is
7
,
CI
Adams
stock
preferred stock underwritten by each, follow: '
■
V 7v77...
cap-
A2
DATES
preferred
competition,
-
to
and 24,000
1971;
under¬
the
on
of
pany
be
1,
of V General
in providing,
telephone service to
1.80
communities
and
surrounding terri¬
tories in Illinois, including Kewanee, Mon¬
mouth, Macomb, Lincoln, Belvidere, Harrisburg, Olney, Mendota and Mt. Carmel
without
by later- amend¬
reserve of company, and for
ital.
.7
Address—Portland, Ore.
trust.
will
Oct.
Business—This
Telephone
:
Proceeds
Plan
Telephone Co. regis¬
cumulative
Address—607
.
maximum
on
per
111.
the
of
names
supplied
ment.
.
Registration Statement No. 2-4921. Form
-(12-27-41)
77.77-7.7•' 7'7'..' 777
V"
Mo.
Business—Engaged
A2.
7
par
Underwriters,
ferred
redeem,
7- 7
purchase, transmission and sale of natural
gas,
major part of which is sold to gas
transmission ^ and
gas
distribution com¬
panies for resale
7'7 7/ :;:7" •
preferred
Commercial
shares
per
Underwriting
SUNDAY, FEB. 1
to
used
Kansas f
Ave.,
7
1950, requiring an aggregate of
$15,854,700, exclusive of accrued interest
on
the bonds to be redeemed
r.
•
7
1,
May
with SEC $5,750,000 of first mortgage
tered
'
,
6%
7
City,
ILLINOIS COMMERCIAL TELEPHONE C6
rule 930(b).
Offerings will rarely be made before the day follow¬
as
be
1942, at $105
1,
standing
Baltimore
Address—1221
$2,660,000 general mortgage
sinking fund 4fts, due May 1, 1950; and
$2,500,000 of 6ft series A debentures, due
share, all out¬
stock; balance for
expenditures in connection with construc¬
Airport, Robertson, Mo.
v
7 ,,
tion and equipment of plant additions 77
•7 Business—Engaged in designing and doRegistration Statement No. 2-4926. Form
and
selling
parts
for aircraft;
expect!
S2 (12-30-41)
' /
"J'' .
M,''
presently to engage in business of manu*
Exchange offer and sale of stock has
facturing, testing
and selling aircraft
been postponed. ; "
77 7 ■ 77777': j
Underwriting—None.
Securities to bi
Offered Jan. 28, 1942 in units of one
Smith, Burris & Co., Chi- share of preferred and one share of comand Tobey & Co., New York
mon at $14 per unit
Underwriters
cago,
will
Proceeds
1942
EST on Jan. 6,
noon
6%
1970;
1,
May
of one share 4ftft: preferred
the redemption, price of
$105,
preferred), for each share of out¬
6ft
preferred stock. ; Exchange
offer expires Jan. 22, 1942.
Any shares of
4 ft ft
preferred not issued under the ex¬
change offer, plus the 6,328 shares not
reserved for such exchange offer, will be
offered to
the public,
at a price to be
supplied by amendment.
Harriman Ripley
& Co., Inc., Philadelphia, is named prin¬
cipal underwriter; other underwriters will
be supplied by amendment.
'777;7;7'
the
Stores
Diana
and
stock
tlve convertible preferred stock and 20,000
DIANA
price
fering
T' Offering—20,-000, shares of 6% cumula-
'
Thursday, January 29, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
438
(12-30-41)
Amendment
7
filed
Jan.
13,
disclosing
a
of 3V*% for the $10,000,000
10-year sinking fund debentures, and a
coupon rate of 4% for the $17,500,000 15coupon
year
rate
sinking fund debentures
The amendment
of
the
issues
as
named the underwriters
follows:
Mellon Securities
A. C. Allyn &
Blair & Co.; Blyt£
& Co.; Bonbright & Co.; Central Republic
Co.; Dean Witter & Co.; Dillon, Read &
Co.; Eastman, Dillon & Co.; Emanuel &
Co.;
Estabrook & Co.; the First Boston
Corp.; Hallgarten & Co.; Harris, Hall &
Co.; Hayden, Miller & Co.; Hemphill, Noyes
& Co.; J. J. B. Hilliard & Son; W. E. Hut¬
ton & Co.; Jackson & Curtis; Kidder, Peabody & Co.; Kuhn, Loeb & Co.; Lazard
Freres &
Co.'; Lee Higginson Corp.; Carl
H.
Loeb,
Rhoades & Co.; Laurence H.
Marks & Co.; Merrill Lynch, Pierce, Fenner
& Beane; Moore, Leonard & Lynch; F. S.
Moseley & Co.; Paine, Webber & Co.; Parrish & Co.; E. H. Rollins & Sons; Riter &
Co.; Schwabacher & Co.; Shields & Co.;
Singer. Deane & Scribner; Stein Brother!
& Boyce; Stone & Webster and Blodgett;
Stroud
&
Co.;
Tucker, Anthony & Co.;
Union Securities Corp.; Wertheim & Co.,
and Whiting Weeks & Stubbs
Corp.; Alex Brown & Sons;
Co.; Bear, Stearns & Co.;
(This List Is Incomplete Today)
Volume 155
t
THE COMMERCIAL
Number 4039
John S; Fleek, President of the
Investment Bankers Association
;
Sees Tax On
Municipals
America.
of
represent
organizations
its
'
luncheon
Robert
Treat
Hotel
heard Austin
'of
the
meeting
J.
in
-
at ,'.the
Newark,
State
on
De-
) fense, denounce the attempt of the
i Federal Government to levy a tax
..upon the income frpm state and
1 municipal
threatening
the very existence of the states as
independent units of government.
1
Tue
bonds
as
Conference
.fense has
State
on
De-
been
position of
>
a
opposing the imfederal tax on muni-
vcipai bonds for the past .four years.
The organization consists; of mayors,
corporation counsels, -attor,
v
.
}
of the states,
general
neys
other
and
local /public
officials
throughout the nation, who have
j
:
united
interfer¬
federal
resist
to
with
ence
•
"
their
fiscal
local
af-
;
particularly
Federal
income
gifttaxes, and estate
taxes,
taxes. ^
•
.,
In
discussing the .fiscal
proposed tax, Mr. Tobin
pointed out that while all experts
Exchange, ard the
Association of Stock Exchange
■
Firms
^
20%
to
30%,
that the
increase
ultimate effect of such
an
would
many
cases
finance
to
recent
,
.
;
crease
.
sey
•
;
:
,
.
•
the
one hun¬
dred dollar bonds to W.W.Wimer,
Bur gin
made.
A.
of
i
.'
;
•
•
These
offer
Notes
service
investment
an
oppor¬
worthwhile
to render a
tunity
to
our
cus¬
and, at the same time,
contribute:; materially, through
tomers
as
-
knowlege
specialized
our
and
experience, to the nation's war
effort. It is good investment ati+
vice to urge people to set
for
aside
payments a portion of
tax
income
as
Fear fa Governors
whether or not the
;■/. power to tax is the power to
destroy, it is very positively the
power to control;
-
for
"2—Without the independent
control of its
own
financing, no
can continue as a
independent state;
"3—And free and independent
government
free and
.
local self-government is
tire
basis
of
political
the en¬
demo-
cracy."
,
that.the current at¬
clothe this proposal in
garments of national defense
sheer hypocrisy, Mr. Tobin
Charging
tempt
the
,
was
-
to
knows > that no
whatever could
be obtained by federal tax on fu-
said, "Everyone
] current revenue
,
ture issues of state bonds. Indeed,
j
no
substantial revenue from this
source
\
;
could be obtained for from
10 to 20 years."
In concluding his discussion Mr.
Exchange at their annual meet¬
ing elected four new members to
the board of governors, instead of
the usual three:
Edward
Calin,
Crowell, Weedon & Co.; George
Jones, Mitchum, Tully & Co.;
Carey S, Hill, Hill, Richards &
Co.; and R. N. Gregory, R. N.
Gregory & Co., who will fill the
unexpired term of W. G. Paul,
E.
now
serving full time
Treasury Tax Savings Notes, and
to aid in the sale of the Notes,
Bill
Offering
Secretary of the Treasury Mor¬
genthau announced on Jan.; 26
that the tenders for $150,000,000 or
91-day
of
thereabouts,
Treasury
bills, to be dated Jan. 28 and to
mature
April
29,
1942,
which
were
offered on Jan. 23, were
at
Reserve
The following
the
Federal
000):
'
-
High—99.975.
and
the
Canal
Zone
has
been
prepared
for distribution by Elder & Co.,
Republic
14
Equivalent
rate
Jan.
28
in
at
12:15
p.m.
luncheon
This
place
the
on
Club's
Feb. :7th.
will re¬
annual
dinner
which will not be held this year.
'"""The following have been nomi¬
nated .for
by the Nominating Commit¬
tee: Edward C. George, Harriman
Ripley & Co.,
Inc., President;
Charles
K.
Morris, Charles K.
Inc.,
Corp., Treasurer.
made at a
George
H.
Willis,
Secretary;
First
Boston
Board of Directors
to
officers):
(in addition
Ralph,
Chapman,
officials by James F. Burns, Farwell, Chaoman & Co.; Eugene
Jr., President of the Association Hotchkiss, Blair, Bonner & Co.;
of Stock Exchange Firms; Wal¬ J. M. Maxwell, Northern Trust
lace H. Fulton, Executive Di¬ Co.; Paul L. Mullaney, Mullaney,
rector of the National Associa¬ Ross & Co.; J. Sanford Otis, Cention of Securities Dealers;. Emil j tral Republic Co.; and R. H. Pe¬
Schram, President of the New tersen, <-The Illinois Company of
York- Stock
Exchange;
and Chicago. ■ •
City,
York
New York
Stock
Exchange.
It
out
points
relative
of
lack
tling Company holds a franchise
which gives it exclusive rights to
Holton &
Kimbrough Now
to
Financial
The
Chronicle)
LEXINGTON, KY.—William B.
Holton, formerly president of Hol¬
ton,
and
Incorporated,
McKee
Kimbrough,
Reese
who
Co.,
&
Foster
with
also
was
the
same
firm, have become associated with
W. L. Lyons & Co., La Fayette
Hotel Building.
In the past Mr.
Holton
.
.
mental disorders weaves its
path.
At first there is the wife of a
mysterious Dr. Tower, who is hidden away/ and later there is her
daughter, now grown up," who also shuns her old playmates. Suicides,
death by violence and malpractises also leave their mark on a
story
that is completely devoid of humor.
/This is a big picture in every
sense of the word.
It has a compelling story, an excellent cast and
capable direction.
Ann Sheridan as the hoyden from across the
tracks who marries the boy when he loses both
standing
performance.
expected,
Robert
legs, gives
well as
Cummings does
an
as
out¬
can
be
though he seems miscast as the sensitive boy who
grows up to be a psychiatrist.
Ronald Reagan as the town blood
who marries beneath him does well.
However, the best job is turned
in by Betty Fields, daughter of the mysterious Dr. Tower
(Claude
Rains), who is doomed to a life of misery.
This is an adult movie
dealing with adult subjects. You will either like it a lot or you will
even
that kind of
There will be
no
half way measures.
It is
picture.
"Bugle Sounds" (MGM), starring Wallace
Beery, with Marjorie Main, Lewis Stone, George Bancroft and others.
Directed by S. Sylvan Simon.... A typical Wallace Beery story with
a
a
.
,
.
different background.
In this one the blustering Beery is a top
cavalry outfit that is being mechanized. Naturally, heit, a condition that he confides to everybody, particularly
his light 'o love, Marjorie Main, who runs the local restaurant. Later
through a series of incidents and accidents he is dishonorably dis¬
charged and takes up with a gang of saboteurs.
Subsequently it
develops that it was all a plant. Beery wasn't actually cashiered
sergeant in
a
doesn't like
out of the
Army, he
Brothers"
(United
Fairbanks, Jr., in
was
detailed to run down the spies.
; "Corsican
release); the Dumas story, with Douglas
.
.
Artists
swashbuckling drama full of flowery speeches,
a
heroic poses and a "justice will triumph" motif. A vendetta separates
two brothers born as Siamese twins. Both brothers go different
ways
and
their 21st birthday meet to mete out justice.
Best-perform¬
by Akin Tamiroff, the villain.
Children will like the movie.
on
war and its stifling effect on night life, new restau¬
night clubs are opening in New York almost daily.
Among the newest is the "1-2-3," a restaurant that gets its name
in
Co.
&
and
from
the
Leonard
address—123
Hanna,
J.
and
was
a
J"■
';,;';
v.
-.';
Memphis
Promotes Davis, Crossett
MEMPHIS,
have
been
the
in
city.
From
ment
of
of
TENN.
E.
of
the
Sponsored
2nd.
Cole
one
by
Mrs.
Dwight
Porter,
Paul
Mellon,
Wiman
and
of the leading places of its kind
ankle deep carpets to its subdued lighting
magnificence with a capital "M." The food here
excellent, particularly some of the sauces concocted by Paul Gatti,
the headwaiter. Despite the fact that the place is open from cock¬
tails until the wee wee hours there Is no organized entertainment
and no dancing.
Roger Stearns, host, plays the piano but most of the
people here go in for games.
The current favorites seem to be such
mysterious things like "Thumbs Up," "Bonanza," or "Dig," in addi¬
its
effects it represents
tion
to
such old
they're played
standbys
as gin rummy and back gammon.
How
what they're all about I haven't the slightest idea.
or
All Fknow is that Parker Bros, makes them.
In any case the night I
Oberon, Alexander Korda, Douglas
Fairbanks, Maurice Evans and such people deeply immersed in their
was
the "1-2-3" I
at
mysteries.
.
...
Club Whitaker
saw
Merle
Another
newcomer to the city's night club list is the
(142 E. 53d)/ This place is run by a triumverate, con¬
sisting of Clarence Whitaker, former stock broker, John Rice, for¬
merly with the Waldorf-Astoria, and Albert Fusco, whose Fusco's
Restaurant
in the
Wall Street
district has
been
Club Whitaker is a pleasant place with
years.
a
landmark
for
35
entertainment and
music
the
by a good orchestra, Alex Botkin's. One of the vocalists in
orchestra, a young man, Art Young, sings better than just all
Among the old favorites, Spivy's, that place on top of an
57th St. and Lexington Ave., keeps things humming.
Currently there are two reasons: The Revuers and Hildegarde Ilalliday.
The Revuers are five youngsters, two girls and three boys,
whose satirical lampoonings keep the crowds at Spivy's in stitches.
The last time I saw the Revuers they were playing in a small night
club in the Village.
I thought they were grand then; they are, if
right.
.
.
.
office building,
anything, better today.
Miss Halliday does devastating caricatures
of people we know.
Her interpretation of the curling pin demon¬
strator in the 5 and 10c. store is as funny as anything I have seen in a
And her Southern Belle, who is "simply dying to meet
the lawyer, or the navy," are calculated to make you
hysterical with laughter.
Spivy's is an intimate sort of place—that
means it's small—has no dancing, but is a good spot to visit late.
long time.
the doctor, or
P.
McDonnell Dead
McDonnell,
Peter
—
Gordon
Joe
H.
Crossett
assistant
bond depart¬
New York City,
the
National
First
Bank
a
partner in
The Penthouse Club
30 CENTRAL PARK SOUTH
120 Broadway,
Adjoining The Plaza
New York Stock
Exchange members, died Jan. 24
at the age
he
promoted to
managers
54th.
partner
First Nat'l Of
and
E.
Hill
is
McDonnell & Co.,
Davis
J.
Roger Stearns, it promises to be
Bacon, Whipple & Co. of Chi¬
cago.
new
officer of J. D. Van
was an
Hooser
officers for the coming
year
offer of
ury
New
Street,
members of the
(Special
meeting
nouncement says:
cooperation was
meeting with Treas¬
Wall
Panama
With W. L. Lyons & Co.
CHICAGO, 111.—The 31st annual
meeting of the Bond Club of Chi¬
cago will be held at the Palmer
MorrisCo.,
The
of
approximately 0.099%.
v ■ bottle
and
distribute
bottled
Low—99.934.
.Equivalent rate Coca-Cola in Panama and the
approximately 0.261%.
•
V Canal Zone.
Average Price—99.942. Equiva¬
Copies of the booklet may be
lent rate approximately 0.231%.
had from Elder & Co. upon re¬
(15% of the amount bid for at
quest.
the low price was accepted.)
There was a maturity of a sim¬
House
.
Despite the
that there is a
unemployment
and very little, if any, poverty in
Banks on Jan. 26.
details of this issue are revealed: the country due to the steady in¬
Total applied for_r.:$371,501,000 flow in payrolls of United States
Total accepted
150,074,000 money estimated to be well - in
Range for accepted bids (ex¬ excess of $5,000,000 per month.
cepting two tenders totaling $105,The
Panama
Coca-Cola
Bot¬
opened
Secretary Morgenthau announced
on
Jan. 26.
The Treasury an¬
.
A stirring tale of unrelieved grimness about a
of children living and growing up in a small town.
One of
boys becomes a psychiatrist, another becomes a playboy, loses
his money, and through the criminal operation of a
surgeon, who
feels he has a right to punish people who don't measure up to his
code, loses both his legs.
Through the whole story the thread of
the
ance
booklet, "Coca-Cola in Pana¬
ma," telling the story of the Pan¬
ama Coca-Cola Bottling Company
and giving a brief history of the
Cliicagri Bond Club To
Bold Annual Meeting
organizations have offered their
services entirely on a volunteer
basis to acquaint investors with
the Government's plan of saving
for
taxes
by
the purchase of
Execu¬
A
,
The nation's leading investment
by Sam Wood.
group
NEW YORK NIGHT LIFE
Results Of Treasury
Tobin said "this proposal is eco^ ilar issue of bills on
nomically unsound, it is unconsti¬ amount of $150,010,000
tutional, it is based upon a theory
of tax evasion not supported by
the facts, and it directly threatens
the borrowing power of local gov; ernment."
v>'-*;■
Treasury In Selling
Tax Savings Notes
as.
tive Secretary of the Exchange.
,
:
The
—
"Kings Row" (WB), starring Ann Sheridan and Robert Cummings, with Ronald Reagan, Betty Fields, Charles Coburn, Claude
Rains, Judith Anderson, Maria Ouspenskaya and others. Directed
rants
;
Investment Grouns Aid
Calif.
members of the Los Angeles Stock
it is received.
-
t
ANGELES,
NEW MOVIES
remember it with distaste.
Write for Booklet
'by simple statute' to tax state
and
municipal bonds, it has,
inevitably, the power to control state and municipal financing,
:
Exchange Names
LOS
ac¬
"1—If the Congress has power
:
/
,
Floyd Justice, President of the
Association, presided.
^
Tobin said:
•
.
Depart¬
purpose
Savings Notes.
r
.
;
dollar / bond
Aldorn, Jr. of
Eastman, Dillon & CoJ
,
.
quainting the public with the
advantages of purchasing Tax
local tax rates in New Jer-
follows: Jersey City, $1.02
per
$1,000;
Newark,
$1.03
per
$1,0C0; Camden, $1.68 per $1,000;
Paterson,
$.85
per
$1,000, and
Trenton, $1.12 per $1,000.
In summing up the effects of a
federal tax on local securities, Mr.
•
hundred
C. Stewart
Jr. of
facilities of the industry
for
ment
estimates by
Professor
Harley
L.
Lutz
of
Princeton, which indicated that a
federal tax on New Jersey municipal bonds would ultimately in-
■i
say:
The
ment and the Treasury
power of the cities
themselevs at all. He
quoted from
i
two
again placed at the disposal
vof rv the ^United States Govern¬
destroy al-
in
A
went to
are
together the
.
*\*
Stock
York
; were agreed that such a tax would
increase the cost of local borrow¬
from
•.
ciation/ National Association of
Securities
Dealers,
the
New
effects
the
ing
Defense Savissgs Bonds
Harper & Turner and Flora
of Hecker & Co.; fifty
operating/^associations will point
dollar
bonds
to
R.' D.
Wood,
out to clients the desirability of
Wright, Wood & Co., C. Howie
these- Tax Savings Notes as an
Young, W. L. Morgan & Co., John
important part of a well-balanced
E. Meyers, Jr. of Gordon Graves
investment plan, says the Treas¬
& Co. (New York), and E.
Cristy.
ury advices, which also state:
other
awards
of
In letters to their members, Fifty-eight
twenty-five dollar
bonds
were
the Investment Bankers Asso¬
fairs.
of
//'r:/ •: <•;
The representatives of the var¬
ious firms represented by the co¬
439
Phi la. Traders Get
PHILADELPHIA, Pa. — The
January dinner of the Investment
estimated sales personnel total¬
Traders Association of Philadel¬
ing about 20,000.
phia was pronounced a huge suc¬
,; The 1 Treasury
has accepted
cess by the 450 traders
attending.
this offer and has printed a spe¬
In a special trading
market, more
cial folder to help them explain
than two thousand dollars in U.
to ;v investors
the reason
why
S. - Defense Savings Bonds was
they should invest funds regu¬
awarded. ■
/;//■;
. (•.;
.:
larly for future tax payments,
./
Tobin, Secretary
Conference
/ some
3,500 member firms in all parts
of the United States with an
The Bond Club of New Jersey
,;
I at
investment
Tnese
& FINANCIAL CHRONICLE
of 63.
For many years
steamship interests in New York
and
A
represented important Italian
was
an
official
of
the
Old
Memphis, it is announced by Dominion
Steamship
Company.
Turner, Executive Vice- He had been a Director of the
a
most
unique restaurant in
beautiful location,
Central Park
to
overlooking
the north.
Norfleet
President
of
the
bank.
Davis
has
been
Seaboard National
Mr.
with
1928, representing the
department in Mississippi.
Mr. Crossett, with the institution
since
1927, has represented the
bank since
bond
bank in Arkansas.
Bank
and
the
Chase
National
Serving
best
food,
skilfully
the
prepared.
Bank,
but
re¬
signed from both positions when
he became
nell & Co.
a
member of
McDon¬
Telephone PLaza 3-6910
440
THE COMMERCIAL & FINANCIAL CHRONICLE
Autocar
Congress Adopts Price
REMEMBER
Corp.
Thursday, January 29, 1942
Merck &
...
(common
is important to
you, that as we
general public,
with the
Aetna Standard
do
business
no
The
by
OUR whole attention is
Corp.
accurate
and
yours,
in making
report
Control
firm trading markets in
OVElt
THE
-
Struthers Wells-Titusville
-
{Actual
COUNTER
SECURITIES
'
Members
.
Members
New
York
50 Broad
;
telephone
Security Dealers Assn.
REctor
St., jNcw York, N. Y.
Bell
4
System
Teletype,
N.
2-3G00
Security Dealers Association
STREET,
NEW
YORK'
telepiionji
bell
Enterprise 6015
telephone
Enterprise
1-2480
Y,
York
philadelphia
hartford
IIAnovcr 2-4660
New
NASSAU
45
new
it
sent
to
United
the
Jan. 26
on
to
The
administrator
an
•
112.
Evans
of
1-576
Enterprise 1250
$5,000 fine and
members
of
the New York Stock
Exchange,
are
celebrating
the
fiftieth anniversary of the found¬
ing of the firm Feb. 1, 1892.
Originally
Boehme in
was
taken
founded
by
And
sions to
over
too.
by the late Alfred
the
William K. Maples,
moved
was
to
out
coming back to favor.
Reports
big buyers have entered the market in recent ses¬
blocks of the exempts closest to par.
Some major
are
.
.
of
the
taxables
into
the
.
been
Its powers
made
It all confirms the comment
made here weeks
.,.
unless sooner ended
Executive proclamation or
ago—that there's
soon, no
pendulum will
taken
its
by
back again.
move
Persistent
story
Congress
around
to
the
cut
normal
the surtax rate to record-high levels.
present location in the South Nor¬
that action
walk Trust Company Building.
.
.
.
course,
..
Mr.
Maples
retired
from
the
firm in January, 1938, and shortly
thereafter Charles Goldschmidt, of
.
Norwalk, manager of the invest¬
ment department, and Berkley H,
Hill, manager of the Danbury of¬
fice, were admitted as partners.
,
sible.
the
firm
became
Feb.
13, 1940, active
management of the business was
.
by the surviving part¬
although his interest in the
firm
continues
with
Judge Louis
Goldschmidt, of the Norwalk Pro¬
bate Court, as trustee.
The
anniversary of the firm also
anniversary of
marks the fifteenth
its Danbury office, which was es¬
tablished in the Pershing Building
by Mr. Hill
office
Feb. 1, 1927.
on
The
moved to larger quar¬
was
ters in the
relating to prices other than in
their official capacity, or using
such information for personal
gain, are subject to a $5,000 fine
and four
has
for
many
Secretary Morgenthau would get around to that step, the
are
.
But
there
.
.
Wilshire
Boulevard
to
other
are
developments of fundamental significance
.
.
One
.
concerns
negotiable obligations.
Federal
"feeler"
.
.
.
.
Reserve
non-
Chairman Eccles
put out the first
on
.
..
Neither
was
pal
and
.
just
.
his emphasis
of tap issues—one a
corporation
portfolios
and
isn't any reason why the
financing.
an
"accident."
the virtues of selling two types
short-term issue designed for State, munici¬
on
the
other
15-year
a
issue,
gage in a securities business. Mr.
Isaacs was recently an officer of
Isaacs
Brothers
Company and in
the past was with Schwabacher &
Co.
Treasury shouldn't try the tap
...
And, of course, the dealers are pushed into the
background, for
speculation is exceedingly difficult when an issue
always is avail¬
able at a set, formal price.
The dealers may be used as distribu¬
tors of the
securities, however.
.
.
.
.
COMMON
There are major differences between
the tap method of financ¬
ing and the usual Treasury system of
offering an issue on one day,
receiving subscriptions from any and all investors
immediately and
then closing the books within 24 to 48
hours.
Under the tap
method, the books would remain open indefinitely.
The issues
could be bought at any time.
HAY, FALES & CO.
Members
71
New
York
Stock
Exchange
Broadway, N. Y. BOwling Green 9-7030
Ball
But there will be—and this
on
buyers.
.
Teletype STY 1-61
Aids Brokers, Dealers
and
of
subject
are
defense
the
proposed sale
securities
tries
or
by
brokers
so
to make it
as
for
send
to
firmations
out
written
required
con¬
by
such
rules for other transactions.
This
as
action, said the Commission, was
taken in view of the proposal of
certain
national
securities
changes and associations of
the-counter
sell
to
brokers
and
ex¬
over-
dealers
securities without
defense
compensation (see issue of Jan.
22, page 313). The amended rules
apply not only to Defense Savings
Bonds and Stamps but also to Tax
Savings
Notes
issued
by
the
in
the
to
of
facilitate
unnecessary.
revoke
violations
Selling Defense Bonds
To
Treasury.
a
.
.
.
seriousness to
address
On
...
a
v
.
.
.
hope for much delay.
.
.
.
.
Maybe by spring or early
.
this
divided
the
.
'
;
implications
(!)
banks
of
issues
certain—definite restrictions
this
■
not as distinct. . . . But they're
In conversations concerning the inflationary
subject, the clues
present nonetheless.
...
selling
are
non-interest
bonds
the
to
commercial
In discussion of the advisability of restricting the sale
to the Federal Reserve" Banks.
In studies of the powers to do
.
.
.
.
.
this already at the disposal of the Treasury. . . . And, finally, in
statement of Representative Patman, Democrat of Texas, that
the
he
would "vigorously insist" on early Congressional consideration of a
measure
providing for the issuance of non-interest bonds to the
Reserve Banks.
There
.
.
.
little
seems
involve
would
sale
possibility of
of
these
bonds
to
any
move
so
commercial
drastic
that it
institutions.
tem, surely set off another inflationary spiral and destroy any sem¬
blance of fair treatment for bank investors.
But there is
use
(1)
way:
...
definite chance that soon,
the Treasury will make
$12,992,000,000 of idle reserves held at the Reserve Banks
bonds. ...
of the
a
for non-interest, non-negotiable
Here's your pattern:
..
(1) Defense
bonds for
individual investors;
(2) Tap issues for insurance companies and corporations;
(3) Non-interest-bearing, non-negotiable securities for the Re¬
System;
(4) Regular, open»market and short-term issues for the com¬
serve
mercial banks.
.
.
.
Inside The Market
There's talk around that the defense bonds soon will be called
"war
seems
a
.
bonds."
short-term
.
.
.
Morgenthau has asked the President for permis¬
sion to change the name.
...
.
Intensified drive to sell bonds due to start on
.
ruary.
.
,
.
deduction
Payroll
plans
will
throughout country on tremendous scale.
years with the interest rate increas¬
ing according to the time the issue was
held, for sale to State and
municipal governments, corporations, estates and trust
accounts; (2)
a
15-year issue, bearing 2%% interest, for sale to insurance com¬
panies, savings institutions and savings departments of commercial
banks; (3) possibly an eight to ten-year "regular"
issue, designed for
banks.
But the odds are the tap
And only after a
...
Non-Interest Bonds
.
.
issue, running from two to five
commercial
than they purchased in 1941.
more
.
Each issue will be designed for a
particular class of
investors and only that class will be
able to hold the bonds.
Eccles'
American Hair & Felt
/
participate. .
When will the first one come?
Hard to predict this, but offi¬
cials in Washington are talking about the method4*with too much
...
.
Deep Rock Oil
;
while—if then—will banks be allowed to
.
.
R. Hoe & Co.
apepals," an
the bill for
of review.
purposes
issues will be aimed first at other institutions.
,.
.
Eagle Lock Co.
in
up
Any step of that nature would undermine the private banking sys¬
...
It has worked well in England and in Can¬
ada.
It has been shown as an effective
way to raise funds.
The only trouble is that American
investors aren't accustomed to it.
.
for
dealers
.
.
Board
the adoption of the tap method of
financing by the
Treasury a week ago in an address before the New York State
Bankers Association.
That speech wasn't
.
ably
the probability of the
Banks, non-interest-bearing,
.
en¬
retail
and
Violators
...
9441
set
agency
Eccles calculated that sale of the two tap issues would bring in
$7,000,000,000 to $8,000,000,000 of subscriptions. . . .
.
method of
CALIF.—
Hart Isaacs has opened offices at
by
to
prices, or for revocation of a
license, they may appeal to "the
emergency court of
.
designed for insurance companies.
HILLS,
as
such persons to
make the usual bookkeeping en¬
to
law.
summer.
.
issuance of tap securities by the Treasury soon.
The other in¬
volves the possibility that in the not too distant
future, the Treasury
will sell to the Federal Reserve
There
BEVERLY
aggrieved
are
the administrator's ruling
.
in the Government market.
public utility companies.
Opens
measures
Tap Issues
Connecticut industrial and
Hart Isaacs
.
.
stocks, bonds, and the securities of
many
.
So the exempts still seem safe.
years
years' imprisonment.
persons
amended its rules
single adminis¬
a
power
commodity,
:
any
licenses
he would sponsor a general sales tax and other
of this nature.
specialized in bank and insurance
If
.
Before
chances
newly remodeled City
firm
pos¬
" •"
lowering the normal tax rate simply doesn't sound logical.
.
Building in 1931.
the
wholesale
.
...
National Bank & Trust Company
The
.
.
Anything is
.■•.
.
be
gov¬
information
,
assumed
ners,
work.
'• ;
v
this with any
drawn.
on
to
nullify the exemption on
outstanding securities.
But it just doesn't seem likely that it will
change the situation so drastically, to get at banks holding the ex¬
empt issues.
.
on
1
■
.
be made
That provision is aimed not only at holders of Government
bonds,
but also at corporations making money in
peace as well as war years.
No doubt, the Treasury would like to
members
Upon the death of Alfred Gold¬
still have to get to
groups
.
can
The tax bill still has
,
...
July 28, 1938.
schmidt
.
But
.
forecast
no
.
.
Mr. Goldschmidt purchased a seat
on the New York Stock
Exchange
and
.
Maybe. ;
Certainly
feeling of confidence.
Pressure
f
the
of
dealers, the Securities and
Exchange Commission on Jan. 21
fix prices
of all commodities except farm
products, for which four floors
were
specified, but permitting
a ceiling on farm prices if the
Secretary of Agriculture agrees.
It prohibits
any
person
or
concern
from
delivering any
commodity at a price above that
set by the administrator.
For
purposes
of enforcement, the
administrator
may
license
corporate tax and boost
The purpose of that, of
would be to nullify whatever advantage lies in
holding
the exempts.
v There doesn't appear to be any confirmation of
the story—but it continues alive and is
repeated in every bond
house as a reason for viewing the exempts and their
high prices
with suspicion..
in
vests
It
trator
be
will
divulging
and
Con¬
gress.
^.
lis
Street
of
resolution
concurrent
doubt, the
...
Wall
terminate June 30,
by
by
1943,
.
:-
year's impris¬
a
Officials
follows:
as
;,c>
| Henry
by
.
.
have
exempts
.
.
the present title was
At
the
same
time,
business
.
up
tax-exempts
1-135)7
ernment
N. Dorris, gave
briefly the terms of the measure
considerable profit to be made in
primary switches from one section
of the list to the other in accordance with
psychological—and there¬
fore price—swings. .
.
For a few weeks, the taxables had the run.
Now it's the turn of the tax-exempts. . . i'And
of Norwalk, entered into partner¬
ship and
adopted.
,
,
Goldschmidt, an employee of Mr.
Boehme, upon the death of the
latter in 1900.
pick
switches
A.
E.
Norwalk, the business
the
now
that several
are
27
HAnover 2-8780
Y.
onment.
prices, industrial profits, rents and
elements entering into the
price structure.
] Special advices to the New York
Times from Washington on Jan.
Reporter On "Governments"
Maples & Goldschmidt, of South
and
Danbury,
Conn.,
N.
Teletype
other
Norwalk
Zinc
Members N. Y. Security Dealers Ass'n
commodity
wages,
Cigar-Whelan
Wallower
25 Broad St., N.Y.
newspapers,
of
-
Mfg. Co.
M.S. WIEN & CO.
bill is claimed by some to
inadequate to halt inflation and
it is maintained that Congress was
lax in refusing to include over¬
control
Sharpe
the
The
all
&
Mexican Internal & Ext'l Bonds
be
Maples & Goldschmidt
Celebrate Fifty Years
Qui
.
bill
fix
to
^
preferred)
World's Fair 4s, 1941
>
,
Merrimac
books,
magazines, motion pictures, out¬
door advertising, or radio broad¬
casting.
The bill also exempts
professional services.
boston telephone
64.25
286
sellers
or
teletype
youk
.
prices of all com¬
modities except farm products for
which few ceilings were specified,
but permitting a ceiling on farm
prices if the Secretary of Agri¬
culture agrees.
The Act would
not apply to producers, publishers
INCORPORATED
J.F.Reilly&Co.
in
power
Kobbe, Gearhart & Company
Wickwire Spencer Steel
and
The House
of
vests
Trading Markets, Always)
passed
its approval to the report by
vote
a
27
the so-called Price
on
Bill
President.
gave
Botany Worsted Mills
Jan.
on
vote of 65 to 14 the confer¬
a
ence
Auto Ordnance
Senate
Brown
-
..
IT
Co., Inc.
&
be
.
.
put
15th of Feb¬
into
effect
.
Board, the system will
Despite urging by members of Reserve
additional powers to curb credit. ... In fact, emphasis will
in the other direction because of need for maintaining receptive,
not get
be
stable
Government
market.
...
j
Trading in new 2% bonds continuing at active pace. ... Two
movements offsetting each other involve switching by some from
...
Morgenthau's drive for redistribution of the debt is still on.
His anxiety to keep commercial banks from
buying too large
proportion of the debt is
as
great
as
ever.
.
.
.
The banks will have to
buy bonds, of course—maybe consider-
these and switching by others from low-yielding
Bond is in peculiarly good position.
,
powers bill allows Reserve Banks to buy bonds
from Treasury.
Arouses thoughts of what happened in
longer-terms
to
short-terms to these.
Second
direct
.
.
.
.
war
.
.
.
.
440
-THE COMMERCIAL & FINANCIAL CHRONICLE
Autocar
Congress Adopts Price
REMEMBER...
Corp.
Thursday, January 29, 1942
.-7
Merck & Co., Inc.
(common
&
Brown
&
•
v
IT
is important to
you, that as we do no business
the general public,
with
Aetna Standard
The
by
Auto Ordnance
Corp.
ivhole attention is
yours, in making
and firm trading markets in
accurate
Jan.
on
a
report
Control
President.
OVER
THE
-
and
Struthers Wells-Titusville
(Actual
SECURITIES
Trading Markets, Always)
286
in
vests
it
sent
The House
of
vote
a
COUNTER
-
an
•
Merrimac
112.
to
Evans
Jan. 26
on
the report by
The
Mfg. Co.
Cigar-Whelan
Wallower
Zinc
Mexican Internal & Ext'l Bonds
the
M.S. WIEN&CO.
to fix
prices of all com¬
modities except farm products for
which few ceilings were specified,
power
•
bill
administrator
.
United
the
to
Sharpe
World's Fair 4s, 1941
V
the so-called Price
on
Bill
gave its approval to
Botany Worsted Mills
27
passed
vote of 65 to 14 the confer¬
ence
OUR
Senate
preferred)
Members N. Y. Security Dealers Ass'n
25 Broad
St., N.Y.
HAnover 2-8780
■
Wickwire Spencer
Kobbe, Gearhart & Company
Steel
INCORPORATED
45
Members
York Security
New
50 Broad St.,
NASSAU
TELEPHONE
Dealers Assn.
2-3G00
REctor
New York, N, Y.
PHILADELPHIA
-
j
N.
Teletype,
System
telephone
Enterprise
new
TELETYPE
1-570
york
professional
Enterprise 1250
,
services.
bill is
The
lax
all
Maples & Goldschmidt, of South
and
Danbury,
Conn.,
*
gain,
celebrating
the
by
switches
A.
too...
moved
was
to
out
of
the
taxables
'r''
.
.
into
the
.
Reports
.
recent
ses¬
Some major
have been made
par.
exempts
.
.
.
Persistent story
by
Congress
around
to
Wall
the
cut
Street
lis that
action
corporate tax
normal
will
and
gress.
.
The purpose of that, of
It
.
the
firm
became
Maybe.
Pressure
sible.
13, 1940, active
management of the business was
assumed
by the surviving part¬
although his interest in the
firm continues with Judge Louis
Goldschmidt, of the Norwalk Pro¬
bate Court, as trustee.
ners,
The
anniversary of
its Danbury office, which was es¬
tablished in the Pershing Building
by Mr. Hill on Feb. 1, 1927.
The
office was moved to larger quar¬
ters in the newly remodeled City
National Bank &
firm
has
.
many
.
The tax bill still has to
.
.
.
,
.
Anything
.
is
.
.
.
.
gage
in
Isaacs
Boulevard
safe.
seem
.;
.
measures
.
Tap Issues
But
there
other
are
developments of fundamental
in the Government market.
securities business. Mr.
a
recently an officer of
Isaacs Brothers Company and in
the past was with Schwabacher &
Co.
subject
are
ably
in
the
to
Treasury.
a
than they purchased in 1941.
more
.
.
.
But the odds are the tap
And only after a
issues will be aimed first at other institutions.
while—if then—will banks
When will the first
cials
.
be allowed to
one
come?
.
.
.
participate. ...
Hard to predict this, but offi¬
in
Washington are talking about the method with too much
seriousness to hope for much delay. , . . Maybe by spring or early
.
.
.
One
concerns
significance
Non-Interest
On
the probability of the
this
7
Bonds
subject, the clues
issuance of tap securities by the Treasury soon.
The other in¬
volves the possibility that in the not too distant
future, the Treasury
will sell to the Federal Reserve Banks,
present nonetheless.
negotiable obligations.
to
.
.
.
non-interest-bearing,
Federal
"feeler"
on
non-
...
Reserve
Board
Chairman
Eccles
put
out
the
.
.
.
Neither
.
was
.
.
his emphasis
and corporation portfolios
and
isn't
any
...
.
.
other
a
15-year
.
It has worked well in England and in Can¬
as an effective
way to raise funds.
It has been shown
.
.
The only trouble is that American investors aren't accustomed to it.
And, of course, the dealers are pushed into the background, for
speculation is exceedingly difficult when an issue always is avail¬
able at a set, formal price.
The dealers may be used as distribu¬
.
.
.
,
tors
of
the
.
.
securities, however.
.
.
There are major differences between the
tap method of financ¬
ing and the usual Treasury system of offering an issue on one day,
receiving subscriptions from any and all investors immediately and
then closing the books within 24 to 48 hours.
Under the tap
method, the books would remain open indefinitely.
The issues
.
But they're
selling
non-interest
bonds
the
to
commercial
In discussion of the advisability of restricting the sale
Reserve Banks.
...
.
In studies of the powers to do
disposal of the Treasury.
.
And, finally, in the
of Representative Patman, Democrat of Texas, that he
"vigorously insist" on early Congressional consideration of a
measure
providing for the issuance of non-interest bonds to the
would
issue,
.
.
.
would
There
why the Treasury shouldn't try the tap
reason
...
the
.
statement
of tap issues—one a short-term issue designed for State, munici¬
pal
of
...
the Federal
Reserve Banks.
the virtues of selling two types
on
implications
(!)
banks
not as distinct.
are
In conversations concerning the inflationary
...
this already at the
first
the adoption of the tap method
of financing by the
Treasury a week ago in an address before the New York State
Bankers Association.
That speech wasn't just an "accident."
ada.
was
(see issue of Jan.
22, page 313). The amended rules
apply not only to Defense Savings
Bonds and Stamps but also to Tax
Savings
Notes
issued
by
the
compensation
Eccles calculated that sale of the two tap issues would bring in
$7,000,000,000 to $8,000,000,000 of subscriptions. ...
'7':'7
method of financing.
en¬
Violators
ex¬
dealers
securities without
defense
sell
to
and
summer.
still
designed for insurance companies.
to
of
brokers
the-counter
...
So the exempts
.
Wilshire
violations
securities
national
changes and associations of over-
law.
.
are
There
9441
for
This
certain
revoke
and
such
rules for other transactions.
or
retail dealers
and
commodity,
any >
licenses
.
public utility companies.
HILLS,
CALIF.—
Hart Isaacs has opened offices at
person
required
con¬
by
as
action, said the Commission, was
taken in view of the proposal of
from
wholesale
.
pos¬
.
he would sponsor a general sales tax and other
of this nature.
years
BEVERLY
any
out written
send
to
or
Jan. 21
to make it
.
chances
specialized in bank and insurance
stocks, bonds, and the securities of
many Connecticut industrial and
Hart Isaacs Opens
this with any
be drawn.
on
But it just doesn't seem likely that it will
change the situation so drastically, to get at banks holding the ex¬
empt issues.
Before Secretary Morgenthau would get around to that
step, the
Trust Company
for
.
.
be made
can
still have to get to work.
outstanding securities.
Building in 1931.
The
.
groups
forecast
no
...
anniversary of the firm also
marks the fifteenth
.
lowering the normal tax rate simply doesn't sound logical.
That provision is aimed not only at holders of Government
bonds,
but also at corporations making money in peace as well as war
years.
No doubt, the Treasury would like to nullify the
exemption on
.
Feb.
on
.
But
members
Upon the death of Alfred Gold¬
.
Certainly
.
.
feeling of confidence.
July 28, 1938.
schmidt
.
tries
on
so as
such persons to
bookkeeping en¬
usual
the
firmations
delivering any
commodity at a price above that
set by the administrator.
For
purposes
of enforcement, the
administrator
may
license
high prices
with suspicion.
prohibits
concern
for
unnecessary.
make
Secretary of Agriculture agrees.
would he
proposed sale
by brokers
Securities and
the
dealers,
amended its rules
a
products, for which four floors
were
specified, but permitting
a
ceiling on farm prices if the
be
the
securities
7",;/7;77' Exchange Commission
single adminis¬
trator the power to fix prices
of all commodities except farm
to nullify whatever advantage lies in holding
the exempts.-..
There doesn't appear to "be any confirmation of
the story—but it continues alive and is
repeated in every bond
house as a reason for viewing the exempts and their
.
Brokers, Dealers
Selling Defense Bonds
defense
and
Con¬
of
..
in
vests
It
boost
the surtax rate to record-high levels..
course,
resolution
concurrent
.
present location in the South Nor¬
Maples retired from the
firm in January, 1938, and shortly
thereafter Charles Goldschmidt, of
Norwalk, manager of the invest¬
ment department, and Berkley H.
Hill, manager of the Danbury of¬
fice, were admitted as partners.
Mr. Goldschmidt purchased a seat
on the New York Stock Exchange
gov¬
are
facilitate
To
of
Executive
.
taken
Aids
:J,':•
terminate June 30,
unless sooner ended by
proclamation or by
1943,
^
...
Mr.
the
aggrieved by
ruling as to
prices, or for revocation of a
license, they may appeal to "the
emergency court of apepals," an
agency set up in the bill for
purposes of review.
persons
Its powers
.
its
follows:
.
walk Trust Company Building.
and
If
by Henry N.
Dorris, gave
briefly the terms of the measure
as
the comment made here weeks
ago—that there's
considerable profit to be made in primary switches from one
section
of the list to the other in accordance with
psychological—and there¬
fore price—swings. ... For a few
weeks, the taxables had the run.
Now it's the turn of the tax-exempts.
|And soon, no doubt, the
pendulum will move back again.
-■?
Goldschmidt, an employee of Mr.
Boehme, upon the death of the
William K. Maples,
of Norwalk, entered into partner¬
ship and the present title was
adopted.
At
the same time,
business
.
It all confirms
latter in 1900.
the
the tax-exempts are coming back to favor.
now
that several big buyers have entered the market in
sions to pick up blocks of the
exempts closest to
E.
of
27
And
are
Boehme in Norwalk, the business
was taken over by the late Alfred
year's impris¬
a
the administrator's
commodity
wages,
Special advices to the New York
from Washington on Jan.
ing of the firm Feb. 1, 1892.
founded
of
Congress was
include over¬
Times
fiftieth anniversary of the found¬
Originally
control
to
••
subject to a $5,000 fine
years' imprisonment.
are
and four
price structure.
members of the New York Stock
are
refusing
'
divulging information
relating to prices other than in
their official capacity, or using
such information for personal
prices, industrial profits, rents and
other elements entering into the
Reporter On "Governments"
Norwalk
Exchange,
in
•
ernment
claimed by some to
it is maintained that
1-1*1)7
Officials
onment.
be inadequate to halt inflation and
Maples & Goldschmidt
Celebrate Fifty Years
Our
N.Y.
$5,000 fine and
apply to producers, publishers
of newspapers, books,
magazines, motion pictures, out¬
door advertising, or radio broad¬
casting.
The bill also exempts
sellers
or
boston telephone
6425
Teletype
a
not
YORK'
BELL
Enterprise 6015
hartford
Y. ,1-2480
NEW
TELEPHONE
HAnover 2-4660
Bell
/
STREET,
permitting
ceiling on farm
prices if the Secretary of Agri¬
culture agrees.
The Act would,
York Security Dealers Association
Members New
J.F.Reilly&Co.
but
.
.
77
.
little
seems
involve sale
possibility
of
bonds
these
of any move
to
so
commercial
drastic that it
institutions.
...
Any step of that nature would undermine the private banking sys¬
tem, surely set off another inflationary spiral and destroy any sem¬
blance of fair treatment for bank investors.
But there is
.
the Treasury will make
$12,992,000,000 of idle reserves held at the Reserve Banks
for non-interest, non-negotiable bonds.
.
use
a
definite chance that soon,
of the
.
.
Here's your pattern:
(1) Defense bonds for individual investors;
(2) Tap issues for insurance companies and corporations;
(3) Non-interest-bearing, non-negotiable securities for the Re¬
serve System;
(4) Regular, open'market and short-term issues for the com¬
,,
mercial banks.
...
...
.
Eagle Lock Co.
R. Hoe & Co.
COMMON
could be bought at any time.
But
on
there will
buyers.
.
.
.
be—and
.
.
this
"war bonds."
seems
certain—definite restrictions
Each issue will be designed for
a
.
.
address
divided
the
issue, running from two to five
issues
years
this way:
(1) a short-term
with the interest rate increas¬
ing according to the time the issue was held, for sale to State and
municipal governments, corporations, estates and trust accounts; (2)
a
15-year issue, bearing 2%% interest, for sale to insurance com¬
HAY, FALES & CO.
71
Stock
Exchange
Broadway, N. Y. BOwling Green 9-7030
Ball
Talatypa
NT
1-61
commercial banks.
.
a
.
.
.
.
...
defense bonds soon will be called
Morgenthau has asked the President for permis¬
change the
name.
.
.
.
...
to sell bonds due to
Intensified drive
.
panies, savings institutions and savings departments of commercial
banks; (3) possibly an eight to ten-year "regular" issue, designed for
York
sion to
particular class of
ruary.
American Hair & Felt
New
There's talk around that the
...
investors and only that class will be able to hold the bonds.
Eccles'
Deep Rock Oil
Members
Inside The Market
will
tremendous scale. .
deduction
Payroll
throughout country
on
start on 15th of Feb¬
be
plans
.
put
into
effect
.
Despite urging by members of Reserve Board, the system will
additional powers to curb credit. ... In fact, emphasis will
be in the other direction because of need for maintaining receptive,
not get
stable
Government
market.
...
Trading in new 2% bonds continuing at active pace. . . . Two
movements offsetting each other involve switching by some from
.
Morgenthau's drive for redistribution of the debt is still on.
His anxiety to keep commercial banks from buying too large
proportion of the debt is
as
great
as
ever.
.
.
.
The banks will have to buy
bonds, of course—maybe consider-
longer-terms
to
these and switching by others from low-yielding
Bond is in peculiarly good position. . . .
short-terms to these.
Second
war
.
.
.
powers
direct from Treasury.
France in late '30s.
.
.
...
bill allows Reserve Banks to buy bonds
Arouses thoughts of what happened in
.
@FedFRASER