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WW"!©
.>•
X
;;
Volume
New
Number 4452
163
York, N.
||
Showing That Formal Censorship Is Only One of Many Barriers to
^Truthfulness. He Charges That Correspondents Are Maneuvered >
Into Propagandizing for the Countries Where They Are Stationed.
Declares That Access to Reliable World News Is Indispensable to
the United States in Fulfilling Its New Leadership in International .
*
of
i
We have become so
of our news-^
recent years
handsprings
Russia had suddenly
did editorial
papers
joy because
them
By DAVID A.
jumped to op¬
timistic
con¬
o n
•
the barisof
pro¬
Talk"
see
ten¬
public opinion
ing Law; and (4) International Force as a Substi¬
tute for Law and Justice.
Praises United Nations
other
mf orti
n g
Organization and Suggests Legal Methods
possibilities.
Thejoy,hovv"e ver,
short
Eugene
Lyons
search
Scientific
lived.
search for law.
censorship
The
■'Sag
M
suddenly and as
restored as
arbitrarily as it
The foreign cor¬
was
Law is that which governs
for law.
a
search
action. In
All scientific research is a
duction
springs
every
and
of
now
the
that
,
*An
Gaumont British
O., Dec. 17, 1945.
•
(Continued on page 41)
enlightening in the present
situation, as it usually is when
a
fantastic scheme is pre-
;
Alaska Airlines
Nu-Enamel
MANHATTAN
h-'M
:■
Prospectus on request
•»
*
;
'Vi< -i.
Prospectus
'i
v<"
'
on
:' I
Bond Brokerage
BONDFUND
COMMON STOCK
i';
Service
Successors
IIIRSCH,
25 Broad St., New York
HAnover
2-OtiOO
Chicago
Geneva
INVESTMENT
Exchange
and other Exchanges
Teletype
Cleveland
4, N. Y.
'
v
;
New York 5
Albany
Buffalo ' Syracuse
Dallas 2, Wilkes Barre
Baltimore
Springfield
Woonsocket
Pittsburgh
London
(
'!1;.
PHILADELPHIA
BOSTON
Troy
1-210
al^Dts fafors
LONG and-GOMPANY
HUGH W/Loi
46
goods
:
services pro-
or
Continued
page
on
43)
pp State and
Bonds
Clt" '
I
\ "
■'
""-V
'
'1
v
t.
'•
' ' l - 'tc.•'
'V,l*
634 SO.
SPRING ST.
LOS ANGELES 14
•
NEW YORK 5
■If THE
York Stock Exchange
Members New York Curb Exchange
Broad St.
*
Tel. DIgby 4-7800
W>'*\ V.
■
:r
1
Bond Department
Hardy & Co.
30
'
-
and Dealers
■
Members New
INCORPORATED
WALL ST.
CHASE
If
NATIONAL BANK
New York 4
THE CITY OF
OF
NEW YORK
Tele. NY 1-733
(Representative!
.
Acme Aluminum
Common
CORPORATE
lyBONDl!
&
60c
SECONDARY
90c
-
Conv.
Kobbe', Gearhart&Co.
Conv.
WALL ST.. NEW
YORHt 5. N. Y,
TELEPHONE-RECTOR 2-6300
Y. Security Dealers
Tel. REcfcor 2-3600
r
Ass'n
Teletype N. Y. 1-670
Philadelphia Telephone;
Enterprise 6015
request
HART SMITH & CO.
Members
120 Broadway,
Telephone:
Now York 5, H. Y.
REctor 2-8600
'
\
„
Bell Teletype NY 1-635
York
New
Members New York Stock Exchange
82
New York 5
45 Nassau Street
Preferred
on
Reynolds & Co.
INCORPORATED
EXCHANGE
Members N.
Analysis upon
Preferred
Raytheon Manufacturing Co.
$2.40
England
Public Service Co.
Conv. Preferred
Prospectus
MEMBERS MEW YORK STOCK
New
Preferred
Solar Aircraft Company
MARKETS
BULL, HOLDEN & C9
Alloys, Inc.
Codv.
Aireon Manufacturing Corp.
FINANCE''
•
-
BROKERS
'14
.
receipts from the sale of
;
Wholes
1927
SECURITIES
64 Wall Street,
.
Nl*
Established
v,..
CO.
&
the
the
for Banks, Brokers i
PROSfECTUTON REQUEST
R. H. Johnson & Co.
to
LILIENTHAL
rent, wages, and interest, con¬
stitute definite charges against
request
;
Hirsch & Co.
Members Hew York Stock
shares, that is,
Municipal
f§ Aerovox Corp. *
*
before the 68th annual meeting of the American
address by Mr. Simmons
1
|'A" & Ordinary Shares
three of these
manipulated
Association at Cincinnati,
Bar
•
are
The first
have a est,' and profits.
workers
scientific laboratory in the
energy
product, namely,
inter¬
economic rent, -wages,
shall set their own wages af¬
world matter
under controlled
ter an examination of the em¬
respondents in Moscow were not conditions until a law is made manifest. Condi¬
David A. Simmons
ployer's books of account. ' !
(Continued on page 38) VPs." tions are then standardized and the functioning of
A
little
consideration of
the law is studied.
The material is exactly anal¬
Index of Regular Features on yzed, weighed and measured, as is the energy applied at a given some elementary, but funda1pressure and temperature. The result is then uniform.
Step by step, mental economics would ; be
page 48.
:V
lifted.
had been
respective
the
are
shares of the
Harley Lutz
Dr.
enterprise, ',we
proposal
of pro¬
to the several factors
at
up
well-
the
call
Corresponding
management.
drying
for Set¬
atomic energy was
into
aimed
.
process
ductive factor which we
and taxation
tling Labor Disputes.
was
-
to
ourselves,"
(3) the Industrial Warfare Overrid¬
Government;
it
us
|\|,| '
i
of producing
goods and services requires
the use, in some combination,
of land, labor, and capital.
These productive factors are
brought together and direct¬
ed, as a team, by a fourth pro¬
The
burden
owe
people. To this
review briefly
of the elementary prin¬
let
ciples involved.
because "we
Fourth Branch of
;
some
oversy.,
no
trative Procedure Which Creates a
c o
r
debt that is
dency to pla¬
cate American
and
end
nancing, the
Recognized Le¬
gal Principles. ' Lists as Phases of Confusion: (1)
the Uncertainty in Judicial Decisions; (2\ Adminis¬
it in theKrema
Court and the
This Tribunal as
the Supreme
Substituting Personal Opinions for
operative spir¬
1 i n,
of
Decisions
Abandonment of "Stare Decisis" by
co¬
more
a
sented to the
t
Arising From Neglect of the
Along with
Concept of the Supremacy of Law, Mr. Simmons Points to the "Double deficit
fi¬
signs of
it
in
nothing especially pathological
con-
,;
Denouncing Uncertainties; and Confusion
this,
to
fessed
Association
t
Soviet gesture.;
They
inured to topsy-turvy economics in
to perceive
price-
SIMMONS*
President of the American Bar
„
clusions
e n
c u r,r
-V.
e v e n
as
the
about
Many of
"abolished censorship."
Princeton University
Professor of Public Finance,
.
Compulsion and Governmental-Di- r
Dr. Lutz Calls for a Restoration of
Genuine Voluntary Collective Bargaining Without Coercion. Denies That Under «
Present Conditions Labor Can Be Exploited or That Individual Profits Have Bear- •
ing on Wage Bargains. Contends That if Concerns Making High Profits Pay
Higher Wages, Their Low Profit Competitors Will Be Unable to Operate, and v
Thus Unemployment Be Increased. Points Out That the Account Books Reveal j|
Only Past Operations and Are Largely the Result of Judgment Rather Than •
Fact, and That Artificially High Wages Must Bring Higher Prices.
Correspondent and Publicist Gives Vivid Pic¬
of the News Blackout in Russia and Other Totalitarian Areas,
certain
s
rectives Destroys
Well-Known Foreign
Finance and Business.
Copy
a
Holding That Collective Bargaining Under
the Managerial Function,
By EUGENE LYONS
Former Editor "American Mercury,"
Author "Assignment in Utopia," "The Red Decade"
m.
.
V
Recently
Price 60 Cents
Y., Thursday, January 3, 1946
By IIARLEY L. LUTZ
Vital to Our Economy
ture
1
Reg. U. S. Pat. Office
c;
Free Flow of World News
"
2 Sections-Section
In
ESTABLISHED OVER 100 YEARS
Edition
Final
Assn.
BeU Teletype
NY 1-395
Montreal
Broadway
York 6
New
HAnover 2-0S80
'
New York
ira haupt &
,
Toronto
co.
Members New York Stock Exchange
and other Principal Exchanges
111
Dealers
Security
WILLIAM ST., N. Y. 5
request
REctor
Tele. NY
2-3100
1-1920
Direit
10 Post
Office Sej.
Boston 9
Hancock 3750
Private Wire to
,
Boston
.
THE COMMERCIAL & FINANCIAL CHRONICLE
Trading Markets in:
Chicago R. I., Old Pfds
Senatorial
Wm. Simon Brewery
Established
192O\yJ-0^t
Members
New York
Security Dealers Ass'n
Loan
The Outlook lor Business
,/
U. S. Senator (R.) from Kansas■
Congress
*to
message
Jonas & Naumburg
American loan 1
Kearney
). Li-.
to Britain, but
&
Trecker
Secr.eta
ry
Byrnes, I am
very doubtful
MitclielUCoiitpiiij
transaction.
l'£
Bell
I
WOrth- 2-4230" W*,
fear
we
1-1227
Teletype N. Y.
on
Power Securities I
7s, 1952-1957
War
3/6s, 1956
N.
on
Members
York
New
31 Nassau Street, New
-
k'f.Bell System Teletype NY 1-1548
Sen. Arthur Capper
Monetary Fund
by the loans
we are
,
by depression- at
'
'
home, and whep
extending
stopped
we
(Continued
credits to
31)
on page
Capital
-/-■v
Common
in¬
0 r-
fessional
taxes
f
creased
return to
Government
tern^
Over
controls
A. S. Campbell
or
Common &
V
Bought—Sold—Quoted
V
Cola
Common Stock
":V.. •'
- -
'
'
^
are
■
vvft
so
Never
on.
man
been
of¬
widely differing esti¬
what
the
future
holds
In fact, the business man
McDonnell &fo.
Members
New York Stock Exchange
opposed
on
of the' important fac-
any
tors in
our
■
*
mk
economy.
120
*An address
BROADWAY, NEW YORK
t
,•/
of
Commerce, New Or¬
back.
Members New York Stock Exchange
Members New York Curb Exchange
50
v-
Broadway WHitehall 4-8120
Bell System
Teletype NY 1-1919
Central States Elec.
1
(Va.)
Common Stock
Smith & Wesson
Nat. Commercial Title &
Mortgage Guar. Pfd.
Frank C. Masterson & Co.
Members New York Curb Exchange
;
64
WALL ST.
NEW
Teletype NY 1-1140
8
WB
l
WM
BONDS
folk
a
YORK
HAnover 2-9470
WE BUY
of:turning
largely
were
WITH
myth and that, in any event, they
singularly, uninviting in com¬
are
parison
with
the
glorious
Coupons Missing
days
Let
me
reassure
I do not pro¬
"viewing with alarm"!
not
old
fering
from
Hanover 2-4850
hardening
far
the
of
gentlemen,
Telaohnn# BArclay 7-0100
Teletype NY 1-672
brought/
New
30
I
me
York to
minutes.
Kaytian Corp.
Eastern Sugar Associates
sort of euthan¬
some
as
are
Teletype NY 1-058
serious occupational
a
that
so
.
DIgby 4-7060
This ailment,
Punta
their economic ut¬
would
Concerned,
contribute greatly to
Exchange and Other Principal ExchangeI
115 BROADWAY
' \
NEW YORK 6, N. Y.
Members N. Y. Security Dealers Assn.
any
Exchange
not suf¬
am
the
peace
mind of the general public.
Members N. Y. Stock
Memberi New York Stock
1 Wall St., New York 5, N. Y,
Perhaps I
enough to know
"economic arteries,"
in fact,
Securities Dcp't.
Gude, Winmill & Co.
to spend the rest of my life
asia^
PAPER
Goodbody & Co.
and
I belong
you.
malady of economists—so serious,
<
& ONTARIO
MINNESOTA
Canadian
U. S. Sugar, Common
1127
Edward A. Pureed & Co.
r
.They feel that the "good
Old'* days"
terances
&
Warrants
de-
the: desirability
however, is
Preferred
STEEP ROCK IRON MINES
Preferred
1-1126
are
cede
pose;
BULOLO GOLD DREDGING
United Piece Dye Works
Teletypes—NY
Textron
termined at the ballot box, there
no turning back;
In fact, many
of this group will not even con¬
sociation
BROWN COMPANY, Common &
.
St., N. V. 5
Asphalt
pat¬
disaster.
matters
many
to the latter group.
ABITIBI POWER & PAPER, Common & Preferred
Missouri State Life Insurance
Bell
Federal
Greater N. Y, Industries
is
by Professor Rod-:
We Maintain Active Markets in XJ. S. FUNDS
for
Kaiser-Frazer
37 Wall
and
better!, Certainly, I
Stamped Preferreds
&
doom
hand, a srrmll minor¬
ity maintains that we must go for¬
ward on the basis. of the present
-fe-that ? in_ a
democracy, where
am
Manufacturing
British
Rademaker Chemical
,
leans, La., Jan. 3, 1946.
Common
face
or
old economic
gers before the New Orleans As¬
Tel. REctor 2-731S
Bates
Pressurelube
Gaumont
which Tie ahead.
>:
,
New York Curb Exchange
-
Telephone: WHitehall 3-1223
Boston & Maine R.R.
!
-
York 5
Teletype NY 1-1843
diametrically
nearly
.
H. 6. BRUNS & CO.
Bell
V*
;
■
!
20 Pine Street, New
Rpdgers
has the choice of forecasts which
Common Stock
Panama Coca
of
for him.
Caribbean Sugar
business
such
mates
Con v. Pfd.
4%%
Preferred
Raymond
controls, and
fered
•
,
the
On the other
Govern¬
the
as
secret:
The large ma¬
jority of the economists, particu¬
larly the older ones, admit these
Changes but insist that we must
increased
has
Pressed Steel Car
■
economic
interest
lower
c-
higher
ment
>-■■■ -.■
basic
many
such
or
i
r
.
econ*
taxes,
t
r e s
tions,
such
Stock
:^%
1
^
..
rates,
taxes, national debt, bank de¬
posits, and international organiza¬
tion,, are far'Changed from what
they were before the war. Now, I
am going to let
you in on a pro¬
reduction > of
Bankers & Shiopers Ins.
Byrmfun Corporation
'
/
^
What is there about the present
>
knows,
factors,
elimination of
business
,
:
situation which causes the
many
ration¬
ing controls or
complete
all
branch office*
omists to have such opposite views
of the future? Well, as everyone
By
,
.
;
eign trade or
.■similar devices after the last war negligible for¬
eign
trade,
we. brought on inflation followed
York 5
Telephone COrtlandt 7-4070
or
to our:
or
<*>—
short¬
labor
NY 1-1557
Birmingham, Ala
.
Deflationary Trends and With
Domestic and Foreign Commerce.
age, return of
making to Britain and others.
Exchange
Curb
ployment
I,
bigger
and Bank and
Vanderhoef & Robinson
'
•
St., New York 4, N. Y.
Direct wire*
■
Holds Immediate Trade Outlook Is Good, 1 i
Sharp Inflationary
unem-
mass,
scale.
In 11919',. we
supported the
foreign ex¬
v
»v/'f'''*v
1'
the year ahead, according to. business soothsayers, we face:
inflation or deflation, higher interest rates or lower, interest rates,
the Bretton Woods
Curb Exchange
Y.
V Vr*
In
ten times
a
Y
.V'
University „v:V
v
Increase in Volume of Both
changes and we financed an ex¬
port boom, just as we are now dor
ing on a much larger scale through
Savoy Plaza
•Traded
that
mistake
World
e
With Neither
made after
we
"
Increased Productivity.
t
repeat
every
f'.-
going
are
to
'International
the
of
dom:
Broadway, N. Y. 5
120
'
■,
^
'» 1
•',
HAnover 2-0700
System Which Will influence World Economy^ and States That Prin¬
cipal Problem in Lohor:^^Melee^JWill Be VAftitude of Labor Toward
about the wis¬
Members Baltimore Stock Exchange
.i*
.
I'1,
j, ?•;
Request:1
on
-V
New Orleans,
Committed to the Political and Economic Cooperation of the "Big
Three" Powers.
Foresees Demands Abroad for a New Economic
ly released by
Mayflower Hotel
HI
Professor Roidgers; Contending That There Is No Turning Back to
Discarded Economic^^ Concepts,^ Holds -That We Are; hi\a New Era
of Economic Evolution and Future Prospects and Policies Are Now
,
recent¬
terms
Linn Manufacturing
■
the
from
Kingan & Co.
v
New.York'
■
the
on
^
'v/i;
25 Broad
Professor of Banking, School of Commerce, Accounts and Finance
The President has not yet sent
a
Analysis
7
By RAYMOND RODGERS*
Coal
Horn
:
«
v.;---;
Quoted
Members New York Stock
Exchange
World War I
By. HON. ARTHUR CAPPER
Elk
,.
—•
Steiner, Rouse & Co.
—
Repeats Mistakes of
BELL TELETYPE NY 1-423
Common & Preferred
Sold
—
WASHINGTON, D. C.—Following
iV'wr-■
HA 2-2772
v*>
Bought
members of the House of
Nat'l Ass'n of Securities Dealers, Inc.
40 Exchange PI., N.Y. 5
« CO., MB.
f ): -Vv.
up the survey of reactions to' the, British" Loan Agreement by
Representatives, (published in the.''Chronicle,Dec. 13, page 2874), we publish
herewith statements made by two leading Senators, both members of the Banking and Currency Com¬
mittee,'with reference to the transaction. As ift the House, the opinions of Senators have a wide range,
from unqualified approval to an out-and-out opposition.
,
,
*.
:
,
■;
P. R. MAILORY
Taylor (D.) of Idaho Favors Loan While Senator Capper (R.) of Kan¬
sas Is Opposed..
Both See Danger of Crisis Ahead, Sen. Taylor Warning That J
Nationalization or Fascism Is Ahead, and Sen. Capper Predicting That We Are
|
Making Same Errors as After Last War in: Making Political Loans.
.
KING & KING
Reactions to U. K. Loan
Senator
Differential Wheel a
Seeger Sunbeam
American Barge
Thursday, January 3,-1946
don't
all
the
hear
Just
way
me
I
farr
you
from
croak for
relax.
Quotations Upon Request
of
No,
believe
Alegre Sugar
'
shall
& co.
Members
New
,
New
York
Stock
Exchange
York Coffee & Sugar Exchange
120 WALL
ST., NEW YORK
TEL. HANOVER 2-9612
'
(Continued
R. W. PRESSPRICH & CO.
Members New York Stock Exchange
68 William
BOSTON;
Street, New York
201
Devonshire
St.
Harrisburg Steel Corp.
-
-
Kingan & Company, Com.
For Banks, Brokers & Dealers
fl ALL AMERICAN %
AVIATION
Utah Southern Oil
Municipal,
railroad, public
8c
industrial
investment
Knowledge
.
.
utility
bonds
Bought—-Sold—Quoted
Upon Request
,
v
•
Facilities
for Investors
Simons, Linbuin & Co.
Members New York Stock Exchange
25 Broad
St., New York 4, n„ Y.
HAnover 2-0600
Tele. NY 1-210
—
Sold
CORP.
Western Union Leased Line Stocks
v
'■-/
Common Stock
Pacific
&
Atlantic
Telegraph Co.
Co.
Empire & Bay States Teleg. Co.
Southern & Atlantic Teleg.
BOUGHT
-
stocks
Experience
•
.
Bought
Engineering Co., Com.*
♦Circular
Jefferson-Travis Corp.
International Ocean Telegraph Co.
■
government,
18)
-
Segal Lock & Hardware, Pfd.
Wellman
on page
Troster,€urrie & Summers
Merfibers N, Y. Security Dealers Ass'n
74
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private Wires to Cleveland
Detroit
.'.'SitiX'r.
-
Pittsburgh
-
St. Louis
SOLD
—
QUOTED
bought
-
sold
quoted
J-G-White 6 Company
:
*
INCORPORATED
37 WALL STREET
ESTABLISHED 1890
Tel. HAnover 2-9300
Arnhold and S. Bleichroeder
NEW YORK 5
Tele. NY 1-1815
INC.
30 Broad St.
WHitehall
3-9200
New York 4
Teletype NY
1-515
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
[Volume 163
Current Low Bond Yields
Shonld
Congress Accept the
Angle-American Agreement?
a
'
"
By FRANCIS W. LA FARGE
.
'
t '
Analyst for the Tri-Continental Group of Investment
Market
CoSr-£,->-£
and Stock Yields.
While He Expects
ing of the Spread, He Doubts
a
i
Further Short-Term Narrow- ; J:
Bull Stock Market.
Income Obtainable M
Eventually Overstaying the Current
"
*
WHITHER NOW?
to Great Britain Has Aroused
Both Sides of the Atlantic, Poses
on
Reprints of above article from
"Busineti Week" available on
:
a
{ Not Bind Great
Britain to Our Commercial
Philosophy.
and
half years
respects
vorable f
Proceeding
eluded.
V
and?) bond
raise the
an Order Should Not Be Directed.
Commission's Refusal Significant and Leaves Pro-
ques-;
tion of wheth-)
long term:
unfavorable
•
out the
petition of
some
.
dangerous
r a m
£t>;;;:'-v)£
these
Members New York Security Dealers Assn.
39
HAnover 2-8970
have
Y.
Teletype NY 1-1203
na-
Con¬
gress will
;
Broadway
New York 6, N.
two
trading
Vtions.
•v:•;-)££
■?•
J. GOLDWATER & CO!
..
dominant
Herbert M. Bratter
W.
Taylor Wharton Iron & Steel
relations
of
I
-
Dye Works
Polaroid Corp.
i
has
now
de-
to
Association of Securities Dealers,- IncJ, to indicate why the
: 'cide on imple¬
size this argu¬
ment.' /:// /B/M////. >/://// -/ SEC should hot be compelled; j;6 enter an "order of ♦dispo¬ menting the loan portion of the
i
It
was £ an
obviously
strong sition,terminating the recent proceedings conducted before agreement. In view of all of the
facts -presently
available
to
a
argument in £ April, 1942 when it in connection with
the; amendment of the NASD by-laws,
F.
United Artists
United Piece
arisen in
the
30, securities dealers through¬
show cause; returnable" Jan. 11, 1946, directing
the Securities and Exchange Commission and the National
overempha¬
p r o g
which
ever
country, Judge Mandelbaum ofI the U; S; District
an order to
does not make
i t
!
Court fortlte Southern District®
yield ratio
to
On the
!
the
bond -stock
in
YORK
rcial
v,
ceeding in Mid-Air.
:
er a
H trend
c o m m e
Cause Why Such
|
article to
o
policy—isperi haps the most
: important
;
peacetime
l\ trict Court of U. S. Orders SEC and NASD to Show
It 0s:
of
the purpose
this
NASD Registration Not Finally Con•
Dis-
on
f
questions
Order of Disposition Refused by SEC.
STREET, NEW
un-
of
.billions; and
far -reaching
rela¬
tionship
be¬
tween stock
yields.
loan
Test o! SEC Powers
fa¬
//'■'
1
Telephone WHitehaH 4-6551
edented
$4.4
p r e c
a
has
the
been
WALL
99
Anglo-American agreement of Dec. 6, including: settlement
of lend-lease; war claims, and surplus property; a large and in many
during the past
three
£ /'/■/••
request.
The
the bullish side of the stock market
widely and consistently used as almost any other
as
THE RAILROADS:
Correspondent, Noting the Bitter Comment That the Proposed Loan
Bitterness Between the Two Great Trading Nations and That It Will
Of all of the arguments on
that has been
By HERBERT M. BRATTER
*
Number of Questions That Have Suggested Themselves for Con-
|
.
He Therefore
Warns Investors Not to Let the Relatively Low
From Bonds Mislead Them Into
AND COMPANY
{ sideration and Has Offered Answers to Many, the Answers Not AH
ft Pointing One Way. Holds Loan Will Increase Rather Than Allay
Repetition of the 1920's Experience
When Common Stocks Yielded [ Less Than Bonds.
one
J
Analyst Traces the Long-Term Relationship Between Bond
licrasTtir
-
'
AMERICAN BANTAM CAR
La Fargo
,
!-•'')
&
Common
Preferred
-
Barron's index of be^t grade cor¬
Washington
observer,
it
seems
most unlikely that Congress will
fail to make the money available.
I .The; agreement
has " afoused
which
provided for. ,the registration of salesmen, traders,
etc., arid which gave authority ito the NASD Governors per¬
mitting them in; ,the. future ;tq sumit to the - membership
erage of 7.91% and 8.35% and one
on the utility average of
11.08%. by-law amendments controlling: ^teofits; commissions,• and
As the long and now sizable ad¬ other charges."
porate bonds yielded only 2.75%
in' comparison with yields on the
Dow Jones industrial and rail av¬
the
of April, 1942 has progressed
argument has steadily lost
lows
the
stock
in
vance
from
prices
of its force. Instead of yield¬
some
This current,
.
Court
highlights
much
proceeding in; the ^United: States District
a
comment
„
both
on
;£
r
•
erages,
5
The
yield only 1% times
now
much.
as
-
<
«
argument, however, has not
HAnover
Bell
main reasons. The
first is that even with good indus¬
two
for
in
rise
common
in that direc¬
tion in 1945 and may
proportions
will
this
between
make
stock
reach sizable
Obviously
1946.
the
to
relationship
yields
unless
with
the
thesis that
1946
content of this article. The trend
is all that
about
we
here
need be concerned
and
lies
that
the proposed' by-law^^
effective within 30 days.
much
(Continued
on page
and
to
can
Haloid Corp.
Thiokol Corp.
take
the basis of
some single criterion.
Washington correspondent
who is accustomed to looking at
all arguments, and especially press
releases, ih the mouth, the process
of making up one's mind is not
always so simple.
In recent years the resort by
Washington public relations offi-
Sargent & Co.
Bausch
We
if it had not done
Boston, Mass*
•ri
-1
on page
^
••
'V
f
^
,
,
.
Lomb
Billings & Spencer
i
hiRioii & [o.m
Members New York Security Dealers Assn.
-
-
v
y
■
•-
\r,f-
.
..£
*
,170 Broadway
' WOrth
2-0300
\0'%Pell System Teletype NY 1S4
28)
Punta Alegre Sugar
/'r.y
,
!
interested in offerings of/
are
&
To the
;
Y'
r
Kingan Co.
?
definiteness.
those who
are
(Continued
Eastern Sugar Assoc.
Lea Fabrics
]
J. F. Reilly & Co., Inc., 40 Ex¬
change Place, New York City an¬
nounce the installation of anopeiiqhd telephone to Boston,
Liberty 2990.4
High Grade
U. S. Sugar
\
Public Utility and Industrial
Mass.--
Pressurelube, Inc.
£
PREFERRED STOCKS
,
DUNNE & CO.
Spencer Trask & Co,
Nationwide
MARKETING FACILITIES £
is
being
placed upon past relationships be¬
tween bond and stock yields in
[
cur¬
to
appears
dependence
TRADING MARKETS
unwisdom
(Continued on page 6)
Reilly Installs Phdne
b
1-2733-34
dis¬
of
final position on the wisdom or
of the British loan on
a
would have- become
so,
loudness
Fortunate
order.
Its refusal was ^predicated upon the contention
that it need not have* directed Uhe holding-of "any hearing
The question is whether or .not
too
with
an
be favorable. /
£•
area
the dust and confusion of the
proposed amendments.
Since the Securities Act of .1934 provides that an appeal
from an order of .the Comrnission, the. attorneys for the
in connection with the subject ihatter, and
NY
the United States and Britain. In
present petitioners requested that [such an order he entered
and the Commission replied in effect that it would not enter
should
bring higher corporate profits and
larger
dividend payments than
were seen in 1945. The questions
of the extent and timing of the
increases are still very much open
ones but they do not fall into the
wide
a
being thrown about and answered
stocks
stock prices rise in proportion.
i There is no disagreement here
be
the
•
2-4785
Teletype,
Wires to Chicago & Los Angeles
rent clamor, various questions are
bond
and
favorable
more
•
in
dividends.
stock
The tendency was
to
seems
agreement, which bodes not well
relations between
ions," in which they held that they would not disapprove
to yield only
stocks selling
trial
roughly 1% more than best grade
bonds this is not an historically
unfavorable relationship. The sec¬
ond and possibly more immedi¬
ately potent reason is that the
year 1946 should see an overall
System
Private
■
for future ha&py
"Findings and Opin¬
The Commissioners rendered their
lost all of its force by any means,
and
;
most opposite poles. So far as the
two publics are concerned there
[Edward
the attorneys
represented them in the initial pro¬
ceedings and hearing before the'Commission; which was held
on Aug. 29, 1945, at Philadelphia.
and;
Request
on
Reilly & Co., inc.
1
.
ing 3 to 4 times as much as best ;
Abraham M_. Metz
grade bonds, common stocks, as
■for the petitioners, also
measured by the Dow Jones av¬
-
;£
Members
New York Security Dealers Assn.
40 Exch. PL, New York 5,N.Y.
|
American and British public opin¬
ion. view the agreement from al¬
.£:
*
iJ.F.
many a year.
the SEC;
;
*Circular
|
doubtless will Le heard for
Generally speaking,
versy
and
controversy [between the petitioners
bitter
sides of the Atlantic, especially in
London.. Echoes of the
contro¬
*INTERNTL. DETROLA CORP.
for
25 Broad Street. New York
.
Members New York Stock
•
jMembers New York Security Dealers Assn.
25
■
Broad
WHitehall
Exchange
*
St., New York 4, N. Y.
a-OZTZ-^-Teletype NY 1-956
Private Wire to Boston
Teletype NY 1-5
Telephone HAnover 2-4300
Blocks of
22)
:
v
JJNL1STED
TITLE COMPANY
||SECURITIESlg§
CERTIFICATES
Bond &
$£■ Public National Bank
-
Inquiries invited from dealers,
estates, corporations, banks, in¬
stitutions and individual holders
Mtge. Guar. Co.
;•'J "/
xi*i\X'••V'l' '•*'''
\ '
«
^
N. Y. Title & Mtge. Co.
32
Prudence £o.
!
New
York
Security
Broadway
NEW YORK 4
Newburger, Loeb & Co.
Members New York Stock
Exchange
"
WHitehall 4-6330
Bell Teletype ITY 1-2033
New
;.
V
v
f
AV-'
Income 4s, 1965
,
*
'
-
t
,
* "
Bonds and Odd Pieces
"*t
,
t
y' W
rgtel
v'/v'■*,[i; '■
'•
•.
£
Radiator Co.
National
£'-y ;:.;;
■
•
•
•
'.<Y'■
"" /,X'i?. :•
HoiiRoseSTrsster
.:••••
;
Bought—Sold—Quoted
\
Harrison 2075
Teletype CO 129
Service
York—Chicago—-St. Louis
City—Los Angeles
Kansas
\
1
-
Direct Wire
'
:*v
Dealers Ass'n
Board of Trade Bldg.
CHICAGO 4 /
DIgby 4-8640
Teletype NY 1-832. 834
40 Wall St., N. Y. 5
I
STRAUSS BROS.
Members
f--
& Trust Co.
Republic Pictures
'•
Common and Preferred
Lawyers Mortgage Co. V
Lawyers Title & Guar. Co.
£iJ£;
American Bantam Gar
ji-v-sv*\.' Vv•• •
V>
', V-
Established 1914
Trinity Place, New York 6, N. Y.
Telephone: BOwIing Green 9-7400
Teletype: NY 1-375
;
Analyses available
to dealers only
C. E. Unterberg
Members N. Y.
& Co.
Security Dealers Ass'n
61 Broadway,
New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL CHRONICLE
4
w'auii & c».
Economic Fallacies of
^
1ST. m*
Changing Trends in
Ability-To-Pay Wage 6 Investment Banking
The
'•V;-'
Dr.
"
By (VAN WRIGHT
Wright, in Pointing Out That
--v.;'
By
•
System of Wage Rates Based
a
y
Enterprise
,
Transport
Alaska Airlinest
American Bantam Car
Cora.
i
f
Pfd.
&
in
wage-price conflicts with all their complications
The present
Ptd.
While
lions.
should be set¬
'
without
tled
prejudice and
as
equitably
Cinecolor, Inc.
possible, it
as
is
Dayton Malleable Iron*
the
of
ut¬
D».
Ivan
lo?w
Lamson & Sessions*
1. Labor's
in
Michigan Chemical.
crease
Mohawk Rubber
2.
Management's
/
have
P. R.
f
■
Mallory
be
that
reply
gains
equally
-
pro¬
about
to face
a
return
duction, prices,
.;
(Continued
and i both
ready
■r
-
.
and living
on
page
21)
»
Cora. & Pfd.
Polaroid Com. "•
I
Taca Airways*
fPittsburgh Railways
•
*
•
Prospectus and Special Letter Available
fStatistical Study
■.*
Members
or
Special Letter
curities
New York
-
-
Security Dealers Association
New York 5
Aspinook Corp.
United Piece Dye §i
MAKER
■
OF
MacGREGOR
:
.
WITH
-
:
<19*4-
——U-
Ben.
-
New Eng. Pub. Serv.
11
Teletype NY
field.
Before
V
underwriting activ¬
j
ma¬
carried
was
The
4
(2), Competitive bidding for
t
without mis¬
on
Reg.
contemplation that such
or
con¬
in
that
the
31)
on page
and
U.
S.
Patent Office
William B. Dana Company
Publishers
25 Park Place, New York 8
Kaiser-trazer
REctor 2-9570 to 9576
>"
Herbert
D.
/
■
;
Seibert,
Editor and Publisher
1
Corp. *
William Dana Seibert, President
i Kingan' & Co. Com. & Pfd.
;
Hanover' Bk.: &
Central
Tr.
William' D. Rlggs, Business Manager;
-
yi.-vf.; Thursday, January 3, 1946
Chemical Bank
*
&
Trust
y
\
Prospectus on request
>
'
i
•
•
.
,
'•
WHltehall 3-44S0
N. .Y.
REctor
System Teletype N.
/aud every Monday
;
records,
dealings,
Broadway
state
corporation,
banking,
city news, etc.)
and
Other Offices: ' 135 S. La Salle' St.,
Chicago-3,-111,
(Teleohone: State 0613V;
1 Drapers' Gardens, London, E. C., Eng¬
land.,, c/o Edwards & Smith-
'
Bell
(general news and advertising issue)
tation
Security Dealers Assn.
2-4500—-120
twice a:
week;;?^
Thursday
-.V" c'
(complete statistical issue—market quo¬
Established 1908
^
every
i
"!V.
J.K.Rice,Jr.&to.
i
Published
-
Y. 1-714
Harvill
i:i\
Corp.
Copyright 1945 by William B, Dana
Company
,
.
Jeff. Lake Sulphur Com. & Pfd.
•
Lane Cotton Mills Corp.
;
WELLMAN ENGINEERING CO.
GLASS
THE
J
Standard
ruary
N.
7% Pfd.
Com.
&
S/S
PId.
;
United Piece Dye Works
j
I
request
Incorporated
41
Broad
Security
Street. Ne*r York 4
at
.
••
Dealers Association
Possessions,
Canada,
of
■Members New
Orleans Stock
Exchange
New York 4, N. Y. "/'New Orleans' 12, La.
11 Broad St.
Bell Te!.~NY-1-493
Cuba.
the
Act
of
at New
Marca
>-
United
per
per
States
and
in Dominion
South and
year;
year:-
Spain,
Mexico,
and
$29.50
per year;. Great
Br'tam,
Europe (except Spain), Asia.,
and
Africa,
$31.00
per .year.
•
-Sank and Quotation Record—Mth.$25
Monthly Earnings Record—Mth.v. $25 yr.;
NOTE—On account of the fluctuations
in
"
$27.50
OCier Publications
Carondelet Bldg.
•"
in
$26.00
Central < America,
T. 1. FEIBLEMAN & CO.
Bo. 9-4432
HAnOver 2-2100
post office
the
under
1879.
Continental
>
Seligman, Luhetkin & Co.
York
Y.,
Commercial Tobacco
Standard Fruit &
,
New
second-class matter Feb¬
as
25,-1942,
Subscriptions
,
FOUNDATION COMPANY
on
Reentered
York.
Reda Pump
3,
FASHION PARK, INC., Common
Members
that
COMMERCIAL
procedure might some day be ex-
,
KENDALL COMPANY
Bos. 2100
*
foregoing
on
FINANCIAL CHRONICLE
Australia
Buff. G0&
the
(Continued
.
*Nafional Vulcanized Fibre
T-1287-1288
ENTERPRISE PHONES
•'
on
not burdensome or.
was
request
.
of
would ; be
were
today
as
1,565,044
WALT DISNEY PRODUCTIONS
1926
Direct Wires toChicago and Phila.
.
now,
1,884,670
Descriptive Circulars
* '
as
well informed
so
Government; agencies,
2,131,638
SEGAL LOCK & HARDWARE
*
was,
(7) Corporations generally
not
ditions
o
1943
REctor 2-8700
i-tt
securities
Members
'
profitable,
more
evaluation
;X;*1940^.4---i--,-/; 1,268,046
H
opera¬
investment banking operations.
I An approximate and condensed
/
:
Broadway New York 4, N. Y.
1-960
much
were
'
\
underwriting
.
Members N. Y. Security Dealers Assn.
Ilartf'd tjJ 11
tions
''
120 BROADWAY, N. Y. 5
Y.
upon
also looked with disdain upon ad^,
vertising.
i
(5) Pure
YEARS
1941
;
SHATTERPROOF
N
commenting
in good taste. It is
noteworthy
that commercial banks at one time
actually and tax-wise.
wi (6) :External
competition from
;':f;
tions which prevailed previously: life insurance companies and com¬
(1) Viewed; overall, ; Govern¬ mercial banks was, not
tqq sig¬
ment interference, regulation and nificant.
'
V :
:
-
of
be
Advertising the particular
and qualifications of a
banking firm through any media
was not. utilized,
and, besides, not
such changes, it is helpful to sum¬
marize very briefly certain condi¬
request
Ward & Co.
EST.
1933
HARDY S HARDY
f Prospectus Upon Request
upon
(4)
(caiI: I.
1942 M-'-i---
-
on
open
invest¬
NET WORKING CAPITAL
v
Circular
%
20
OP
or
services
^
CLUBS
No funded debt
■;
v
1.42"
1940
North'n New Eng. Co.
Circular
Act
may
1935
:^%T944'^^.iii.^:'$l,595,Sr8;i
1.24
Iowa Southern Util.
or
the
Utility
Holding Com¬
Feldman
F,
pany
150,000 Common
V
1.59
:V'194J.
i' ■
V
1943—1.40
*Bulletin
and
;
|
$1.46 >'•<>••
;^fI942
FOR
EXCEPTION
^
■
GOLF
encroachments
.
givings
V'I ■
DIVIDENDS
THE
No preferred
EARNINGS
American Gas & Pow.
•
Ndreconversion problems\y;
UTILITIES
I
.*? '
UNINTERRUPTED
V
,
,
PRODUCTS, Inc.
A LEADING SPORTS MANUFACTURING COMPANY AND
jj?.» • {.V'w"-;»«&•'* v >1
I Textron Wrnts. & Pfd. j
I
direct
competition from other
ment banking houses..
1934,
trusts
;|
its
or
and not by
terial.
#
New Jersey Worsted
corporation
Exchange
municipals and railroad equipment
SPORT
the
Securities
Public
ities
Teletype NY 1-2425
^
of
controlling interests,
and
Commission in
; -
'
stance
net effect
-
TEXTILES
|
Act,
the
exceptionand
entirely at the in¬
prior
terstate
Commerce Commission, years the investment banking in¬
and similarly; with respect to util¬ dustry conducted its affairs largely under its own set of rules and;
ity securities subject to approval with
relatively/little interference
by State Utility Commissions, the and control by Federal or State
Request
on
70 Pine Street
Bnvnrpr 2-7793
i
almost
subject to the approval of the In¬
FIRST COLONY CORPORATION
Waltham Watch
Warren Bros. "C"
|
much
then
Railroad
fM. H. Lamston, Inc.
fYork Corrugating
-
^Simplicity Pattern
v; U. S. Truck Lines
l
were
: of
; investment
banking
operations
were
formerly very
limited in scope and degree; and
while the issuance and sale of
f American Insulator
fLe Rol Company
United Artists
Alabama Mills*
Conditions
control
H. H. Robertson
continuing nature, although
by written contract.
changes in such relations
bound
Any
to spenders
wages
a
the
-*
to peacetime pro¬
of
the creation of
live
*'
•:
.
with regarded as the outstanding events
for promoting important
great shortages of all kinds of
changes
buyer's wants are dangerous and in the competitive and operating
antagonistic
forces
in
bringing aspects of the investment banking
and stockholders
war
some
should
"
banking firm and
a; corporation,
whether railroad,
utility or industrial, were usually
The 1933 Se¬
y
The maladjustments created by
the inflation of the money and
credit available
only come out of
duction is equally logical.
Both workers
Oxford Paper
be difficult to
ing conditions.
,
wages can
Natl. Vulcanized Fibref
in¬
an
wages
logical enough.
that will
ards
equal to the in¬
in the cost of living seem
crease
Prior
:
sooner
relations between
investment
an
not
down and accept peacetime earn¬
run.
for
demands
the
in
cerned
Wright
in-
banking seems
pertinent.
'■
•
con¬
in
vestment
free
and
1(3) Individual
hanging
c
trends
peacetime-production can go for¬
confidence... J
The maladjustments from war¬
time wages paid by the Govern¬
ment both directly and indirectly
with the- taxpayer's money have
created extravagant living stand¬
and
ets of all
basic
maladjust¬
eliminated,
are
a
ward with
the best inter-
Kingan Co.
'
Since
cal
unfortunate
are
these
sooner
competition" restored tthe
welfare of the
country
subsidies
the
ments
set¬
economic
Kaiser-Frazerf?
i
and
sound
on
of
use
principles for
the
general
;
Hartford-Empire Co.'
-
be
tled
Douglas Shoe*
•
that
they
Gt. Amer. Industries*
i
impor-
eri o s
Du Mont Lab. "A"
,
t
tance
;
changed conditions of recon¬
peacetime' enterprise."
Neither
labor
nor
capital ;vcan
count on war profits for perma¬
nent policies or agreements.
1 The maladjustments created by
holding ' down- some prices and
letting other prices rise or by the
version- and
;
operation in investment banking consists of a criti¬
investigation and analysis of "corporations in many diversified
industries, an^tended to other classes of securi¬
appraisal,
in
turn, of the ties.;;";
the
these conflicts
Furnishing Advisory Services Involving
Investment Judgment.
-
S. F. Bowser
I
for Investment Bankers in
are
regula-^
war
Amer. Window Glass*
Com." &
;
part, at least, the results of maladjustments growing out of the
American Hardware
.7';
-
Ability of Individual Employers to Pay Will Destroy The -v V
System, Cautions Against Fixing Wages Under it
y! Points Out That Government Regulations Have Stimulated Internal I
Conditions of Economic Maladjustments Arising From War, Infla- vi
Competition Among Investment Bankers and Created a
Tendency' tion, Price Controls and Subsidies. ,- Holds, Only, Workable Solu- £
y Among Corporations to Shop Around Their Securities. Notes That tion of Present Wage-Price Problem Is to Keep Prices and .Costs in V
j Effect of Competitive Bidding Has Been a Drastic Reduction in
Balance, and He Proposes That Both Labor and Management ReProfit Margins on Strictly
Underwriting Operations on High Grade
sume Full Production and That an Institute) Composed of
Repre¬
Securities as Well as Standardization of
Underwriting. Sees Grow¬
sentatives of AH Factors in Production Be Set Up With Full Power
ing Competition With Commercial Banks and Insurance
Companies,
To Decide Labor Disputes.
v
but This Has Not Affected
Equity Securities. Points to a New Field
INDUSTRIALS
:
BENJAMIN F. FELDMAN
Asserting That Investment Banking Need Have Little Concern Over
Undesirable Competition From Government
Financing, Mr. Feldman
!
the
on
Free
Air Cargo
Thursday, January 3, 1946
the rate of exchange, remittances for
foreign subscription? and advertisements
must
be
made in
New York
funds.
Volume
Number 4452
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Has War Increased
The Costs of
Compulsory :
Military Training
Investment Capital?
By A. M. SAKOLSKI
Economist Discusses Question Whether There Has Been
Capital
Accumulation During War, and Whether Such Accumulation
May
Offset the Largely Increased Burden of the National Debt.
Points
.
:
Capital Accumulation Is Possible, Despite Heavy ' War
Wastes, Because of Increased!Productivity Under the War Econ-
*
•"
omy:
Increased National Wealth
and That
r
Postwar Stock Market Boom Cannot Be Said
a
1
«
Bef
to
Always the Direct Result of i Surplus Individual Savings
creased Purchasing Power.
I
.v
In-
or
.
.
Investment Banking is the creature of capital accumulation. When
liquid capital increased in nations where free enterprise. existed,
and
when
divMuals*
trolled
:of
in-<s>-
con¬
the
u$e,
their
pos¬
sessions,
ir>-
t me n't
y e s
banking
canje
into
existence
and
generally
centuries, civilized industrial na¬
tions have- been almost continue
period
and during the
war,
have
gressively
"accumulated
war
pro¬
capital. In fact,
the growth; of capital Seems to
have been most conspicuous in
those f nations
which have been
more
.
most
When individ¬
frequently engaged in major
wars,
as,
for - example,
Great
Britain, Germany,- France • and
ual
Japan.
prospered and
de.velope
and
tional
na¬
wealth
its ' effici¬
or.
declined,
ency
The terrific strain of the
did
wars
not
impede
Britain's industrial growth, and at
end. of. the .quartercentury
the
•
conflict
British : capital,
repre¬
banking ■■ un¬ sented both by productive equip¬
derwent deter! ment and consumers' goods, was
inve
s
t
m e n
t
rioration. ,Ac;
d i
c o r
A. M. Sakolski
n
g 1 y,
greater than
tional
garded
bankers should haye; a
burden
deep and
serious
in
interest
the
question: '"Has the war increased
or
diminished capital accumula¬
tion?
Is
before.
debt, which
American .in¬
vestment
ever
as
by.
Her na¬
then
was
almost
an
re¬
unbearable
such'
serious- and
economists: as David
thoughtful
Tticardo, was borne with less dif-r
ficulty
than
in
the
which
years
'
country or the in¬ preceded the conflict.
The more recent experience of
or poorer because
Germany
conflict?
Were
the
ex¬
following
the ; First
the
<
.
the
penditures
loss
on war a
gain
or a
World
War
is
another
case
the
just
for
war
purposes
much waste of
so
ductive
resent
capital;
or
our
pro¬
States.
cause
we
does it
rep¬
tainly for the United States.
r
A
whether there
of
ways
ty.
:
It
is also
important
i to
whether
al
know
the
added
eco
nomic
maintained
that
is a national
questions
"national
a
sion,
the
blessing"
that
have'
this
i t y
.defense
States has'•■"at
satisfactorily answerecT and;
ANALYSIS
ON
Thomas
been
to
■
'
a
,
"
would
involve
two
International
agreements;
for
no
question
or
unit
forces..
require
Of
-Modern
wars
that
Aldred In v.
nations
Brown
armed
both
Intl.
;
nations pooled
arid acted as
resources
time of crisis.
I00t0 (Continued
their
This
is
a
a
50
and
4y$$, 1959
Mont. Lt. Ht. & Pr.
Montreal
i
COAST-TO
17):u
3Vk, *56, '73
Tramway 5, '51, '55
Corp. of Cda. 4%, 1959
HART SMITH it CO.
C OAST
-
52
WILLIAM ;S3\, N. Y. 5
Bell
Chicago
•
St. Louis
-
-
Kansas City
Los Angeles
-
Teletype
New York
HAnover 2-49M
NY
1-395
Montreal
•
Toronto
STRAUSS BROS.
Members New York Security Dealers Assln
32
'
Broadway
General Public
.Board of Trade Bldg.
NEW YORK 4
REQUEST
CHICAGO 4
Harrison
;
Teletype
White & Company
ST. LOUIS
?
Inutilities
2075
CG
129
.
Common
Broadway, N. Y, 4
Baum; Bernheimer Co.
KANSAS CITY
Pledger &; Company, Inc.
HAnover 2-8380
LOS ANGELES
:
-
-
-
"Mission
;
PANAMA COCA-COLA
Common Stock
1
I
q
t
.
'
v
.V
i
4
1
Quarterly dividend payable January. 15, .1946
to Associated Gas & Electric)
—
When Issued
1945
$2.25
—
1944 $2.75
kt
'.-"yyy
'
Dry
\
'
c*":
■
;;'h 4
$.75
Common
and
Preferred
1943 $4.50
—
Approximate selling price
'
>
Republic Pictures
1
—
DIVIDENDS:
Associated Gas & Electric—All Issues
—
28 Va
tyyity.
■■
'
-New Analysis 'onktequest.
J
'
cAllen & Company
i
j7-
HoixRoseSTrsster
"
G. A. Saxton &
70 Pine
A
'
■
7
■
i
Co., Inc.
Street, New York 5, N. Y.
"
'
• '
;
'
Telephone: BOwling Green 9-7400
tk-t
low priced speculation
piPROSPECTUS ON REQUEST
"v
0t0t00
American Cyanamid
40000
Eastern
^
Missouri Pacific old
'
CO., Inc.
1
HAnover
Angeles
2-2600
1-1017-18
&
1-573
Wires to
and New
0*0
00i V;
f J
.
Orleans
1954
Carbon Monoxide
Y.
N.
H. &
H.
NY 1-1026
old
Eliminator
Preferred
Common
^
American Insulator
common
&
preferred
common
&
preferred
Preferred
Heat
&
Power
Co.
Incorporated
MEMBERS
63
Wall
N.
Y.
SECURITY
Street, New York- 5, N. Y.
DEALERS
'.i't
ASSOCIATION
Bell
&
Common
Gilbert & Bennett
FREDERIC H. HATCH & CO.
\
BROADWAY, NEW YORK 6, N. Y.
BArclay 7-0570
BR O A D. S TRE.ET
NEVA. YORK 4, N. Y.
Telephone:
Consols
Sugar Associates,
Petroleum
Members N. Y. Security Dealers Ass'n
0
Teletypes: WY
t
N.
REQUEST
4103
00:.,
.
%-^r:
Minneapolis & St. Louis Ry. Issues
:
111
J,,
Los
»
A
COUNTY COAL
F. H. KOLLER &
r
Direct
COMMON
CIRCULAR ON
;
Teletype: N F 1-375
Securities Co. of N. Y. 4%
t01
A
;
^f
Teletype NY 1-609
Manufacturer of Electric Refrigeration Equipment
"
.
"v;v:.v'rC*/'Established 1922
74vTrinity Place, New York 6, N. Y.
'
Crescent Public Service 6s
FRANKLIN
:
ESTABLISHED 1914
Specialists in Soft Drink Stocks
KOLD-HOLD MANUFACTURING COMPANY
i
'
Direct Private Wire Service
General Public Utilities Corp.
Company
WHitehall 4-4970
'
(
Hydro Elec. 6, 1944
r
(Successor
5%, 1955
Company 5, 1959
London & Cdn. Inv., 4V2, 1949
23)
on page
4V2, 1967
Gt. Brit. & Can. Inv.
Power
Yet, in the last three
victor
,
Steep Rock Iron Mines 5Vs>, *57
W. J. Banigan & Co.
destructive
•
a
■
vanquished.
to
has
as
Foreign Pow. Securities 6, 1949
This would
in
DIgby 4-8640
exceedingly,
are
Jr.,
firm
J-
Assoc. Tel. & Tel.
course
independent
an
more
in
Teletype, NY 4-83^834
War Destruction and Capital:
Growth
:
the
Abitibi P. & P. 5, 1953
;
aggres¬
arrangements whereby
military
disarmament and the abolition of
com*
1
,r*,
Hickey,
to
Dom. of Canada, Internal Bonds
.
■
J.
admitted
New
announce
inter¬
an
prevent
Military alliances.
Tedst;:th^|Mlbwirig
conscription. There is
para lively little success has been,
achieved in solving them. • ■ *
i
members
Exchange,
«...
.
force.;,;.;'This would be relatively
cheap economically.
"
John M. Swomley, Jr.
four choices:
K'-
These kfe
been
that
City,
Stock
council ,?whose
security
was
not" have
the J United
Company
never
York
pooling
by
Under
terms of armed
With respect
s e c u r
York
New
each nation would have to
only a small contribution in
make
Farrell-Birmingham
debt
Vilas & Hickey, 49 Wall Street,
-
internation¬
an
only
resources.
purpose
United States.
and
force
national
-1'
actually
harm
police
their
burden
will
Hickey Admit
Hickey, Jr.
Thos. J.
police, force. \ Under
united nation set-up short of
nations could have
for
s
New York
have figured debts as ad¬
ditional capital creation and have
Vilas &
world government and a
yielding of sovereignty by,?the na¬
tions,; it is clear that sovereign
viding securi¬
to;
.
actual
pro¬
actual ^accretion ' to
wealth merely because it produces
omists
active
from
world
any
less costly
are
an
income to the bond holder, for it
should not be forgotten that econ¬
released
U.S.N JR.,
least cost for all nations—and cer¬
must
d iscoVe
ments, Hitler succeeded (albeit at
cost of the living standards
on page
been
Towbin,
<
that this would involve the
bqt
is
It
r;
important be¬
the
(Continued
Belmont
Commander
general partner.
for fu-^ point. In spite of the costly con¬
ture production and consumption? flict, the loss of German Man¬
And, lastly, is the vast national power and the reparation pay¬
created
that
duty and has returned to the firm.
'4 United
to the resources Available
debt
&
Co,," 61
New. York City, an¬
Broadway,
Lieutenant
.
compulsory military training in peacetime
any discussion of the postwar security of
important factor in
,
dividual richer
of
Unterberg Co.
E.' "Unterberg
has
an
us
Napoleonic
C.
nounce
Editor "Conscription News"
The probable cost of
-
is
ously at
%
Swomley, After Considering Four Choices in Providing for
Compulsory Military Training Is
the Most Costly.
Points Gut That Taking Into Consideration Both
Direct and Indirect Costs, the Total Expense Would-Exceed $4 Bil-:
lions Annually or More Than Was Expended for Relief by State
and Local Governments During the '30s*
Holds a Large Trained
Reserve Will Require Heavy Expenditure for Arms and Armaments
and Concludes That if Adopted, Compulsory i Military Training
; Will Fail in Its Purpose.
of Increased Funds for Investment ~V
or
-'
-
C. E.
National Defense, Contends That
Holds Large Individual; Savings Is No Clear Indication of
-
? J"
-
Mr;
,y
Out That
•
.
JOHN M. SWOMLEY, JR.
Towbin Returns to
.
; .-J;,.;..
Teletype NY 1-897
PETER BARKEN
32
Broadway, New York 4, N. Y.
Tel. WHitehall 4-6*30
.■
Tele. NY 1-2500
6
Laird Go. Announces j
Ronafd
Partnership Changes
of Dorentus & Go.
Laird & Co., 61 Broadway, New
,
.
Ronald
York City, members of the New
York Stock Exchange, announces
that William G. Jones, Jr., David
Craven
and
N.
admitted
partnership
and
as
,
to
in
Los
Angeles
elected
firm^
the
in
San
of the fijm
office
he
icle" of Dec.
made
y
has. served
was
Francisco
as
manager
» *
.
The court issue
,
j
of the Commission there exists
instance to have
every
...We
or
irj
far
so
: -.
.
^
-
MICH. — Donald I.
Creech has rejoined the staff of
Goodbody & Co., New Penobscot
any
Building, after serving in the U. S»
C
p
and
other which
any
:
.
.
it fixed
McElliott
staff
a
not such
or
order is the
an
matter which the courts
In any event,
may
1
(f
Announcing the formation of
1
vc^'
*
V
•
'i'l>
•
"*{
&
an
appeal,
\
so
i'
up
' f/i,'
1" '
{
He
was
E.
the
to
&
Co.,
formerly
*
••
Chronicle) '
MICH. —Aaron
'
P.
Dolphyn,
Buhl
f in
Building,
& Co.
Guider, Gil-
v
pass upon.
^1 /
iK-
'
added
Simonds
the past he was with
'
the issue should not be left suspended
*
A
and refusal to do
been
DETROIT,
more
ultimately
has
Baker,
Dennis is with Mercier, McDowell
r
r
/'"*•'
ifi
(Special to The Financial
DETROIT,
and the order should be entered/ The Commission's failure
;
of
Chronicle)
MICH.—Robert
(Special to The Financial
order.
an
subject of
Financial
serving in the U. S, Navy.
thereby instituted the proceeding, in
and be terminated by
course
The
Buhl Building.
hearing of
a
to
DETROIT,
opinion, fairness required. that such hearing take its
Whether
--
(Special
'
once
i
Chronicle)
DETROIT,
order of disposition
as an
proceeding and
action at all,
no
motion
own
customary,
is
^
.
(Special to The Financial
rtv-
its part in
on
that the Commission had the prerog¬
true
taking
duty
Army.
distinction
see no
While it is
\
our
of December 31, 1945
mid-air
final order which disposes of
a
brought before the Commission;./
Campbell, Phelps & Co., Inc.
as
hanging in
fixed
a
proceeding pending before it.
its
have discontinued business
Personnel Items
decided is whether the Com¬
proceeding
a
^
whether under the Securities Act and the Rules of Practice
ative of
Announcing that
to be
now
leave
may
-j
B roke r-Deale r|
•;
■;
(Continued from page 3)
mission
is
since
(
lv.v-
,
is concerned between this
in 1938, where
October, 1942.
'.V.-.:.-' v.".-:;
...
.
\
a
ac¬
1930. He
the
to
reported in the "Financial Chron'
been
of
an announcement
transferred
previously
were
has
President
v,Brindiey joined Doremus & Co.
general partnership. Part-
nership changes
of
manager
by W. H. Long, Jr., President,
H.
lim¬
a
ited partner and has been admit¬
ted
Co.,
cording to
Henry
that
Silliman has withdrawn
&
mus
Vice
general
to
Brindiey,
Test of SEC Powers
:.
y."
the San Francisco office of Dore-
Nilssen
Matthew
have* been
Brindiey V.-P.
Chronicle)
MICH. —1 Ruth
S,
4
Montgomery has joined the" staff
of
Moreland
&
Co., Penobscot
Building.
She was previously
>
to 410w is significant.
,
Campbell, Phelps<S- Co.
with
the
Michigan
Corporation
and Securities Commission.
a
:
partnership
(Special, to .The Financial
specializing in Municipal Bonds
at the
address
same
*
-
DETROIT,
,
r,''(y-5;
••
?>;•
*
f
We take
70 PINE STREET, NEW YORK 5, N. Y.
/
;a -y
•*._
'
; -»..
- *
,
i
y
•»
.
^
MICH.
—
It
Jack
Miller has become affiliated with
pleasure in announcing that
MR. A. PAM
Roger S. Phelps
1 •
>
Chronicle)
Paine, Webber, Jackson & Curtis,
Penobscot Building,. after
in the U, S, Army.
5
BLUMENTHAL
serving
.
has been admitted to
our
firm
as a
General Partner.
(Special
to The
Financial
Chronicle)
DETROIT, MICH.—Richard MV
We
are
pleased to
Patterson is
that
announce
:
We also
announce
the
opening of
a
now connected with a:
Charles A. Parcells & Co., Penob¬
; ;
scot
Mr. Kenneth C. Ebbitt
in
NEW YORK OFFICE
Naval Reserve.
has joined our firm
: as
a
Building. He was previously
duty with the U. S.
active
30 BROAD STREET
partner
; (Special
Telephone HAnover 2-8645
Teletype: NY 1»1059
to The Financial
Chronicle)*
DETROIT,
MICH. — Archer
Smith is with Slay ton & Co., lnc«
Campbell, Phelps ^ Co
70 PINE STREET, NEW YORK 5, N. Y.
i'' \Sp6clal j to ..The Financialv*ChronicleT i
A;\V. MORRIS & CO.
.
"
BEACH,
FLA.—David
M; McLellan is with Bache & Co.,
2(169 Collins Avenue.
Members New York Stock
'
Exchange
'Associate Meipberf New York.Curb Exchange
Members Los Angeles Stock Exchange
(Special to The Financial Chronicle)
'
OMAHA, NEB.—Ray 1* Edmis-
LOS
ten and Hubert R. Nelson are with
Ilerrick, Waddell & Co., Inc.
ANGELES, CALIFORNIA
United states Government
1
<)
K
,
«
>
£
f
t
J.
^ *t
^
.
f
-V
' '
it
'
'
'
x
„
r
V
*
"
Securities
'
■■■■■■■■
(Special to The Financial Chronicle)
"
PALM BEACH, FLA.—John W.
Van Ryn has joined the staff «pf
Merrill Lynch, Pierce, Fenner &
Beane, Bassett Building.
V. r^. •
Utilities
-
Railroads
-
We
Industrials
pleased to
are
*7:/'
'''
'■-1,1———J..'*
'
1-
that
announce
Wood Slruthers Admit
Stocks-Bonds
BELMONT
Lt.
T0WBIN
Colgate & Langreth |
Commander U. S. N. R.
Bank and Insurance Stocks
Wcod, Struthers & Co., 20 Pine
has been released from
fH*
J
V".
"v'< .♦'/
>
'
"V- 'h'tf"
-'
'
;
1'"f
and has returned to
Foreign External and Internal Securities
active
,J
1
v
^
*
*4 vf'A
'''
*
firm.
our
Street, New York City, members
duty
pf the Nw York Stock Exchange,
„gig
that Henry A,
announce
Colgate
,
and
in the firm.
Members New York Security Dealers Association
1
Corporation
120
Broadway
New York
5,
61
Broadway, New York
Bell System
Telephone: BArclay 7-5660
New York
.
J'-"
ST. LOUIS, MO.—Redden & Co.
,
will engage in the securities busi¬
ness
from
offices in the
Building. / Officers
WE
TAKE
fort
MELLGREN
G.
ERIC
QF
telephone to Boston, Massachusetts
Phone
BECOME
Liberty 2990
|
k
1
FIRM
BROADWAY,
8
WILLIAM
Members
Reilly
New
York
&
Co.,
Security Dealers
B.
FOWLER, JR.
JOHN
inc.
J.
JOHN
S.
HUTCHINSON
Exchange Place
*
New York 5,
N. Y.
L.
.
i
Direct Wires to Boston
—
Chicago
—
Los Angeles
>'
MORRISON
LIMITED
'V;
'
'-V
,-
,
...
-..•'.>vV.
JANUARY
2.'1946
:■
'
SCRANTON,
'.A•
••
A' i..'
'
.
-
•
Ideson, Vice-
Secretary and Treasurer*.
past Mr. Redden
Sincere and
;'f'
was
'
'
A
In
Presi¬
1
Company, members
of the New York Stock Exchange
and other
PA.
nounce
•
principal exchanges, an¬
Miss Mary Valerie
that
''
.
.■
y'?-' nir *
B.
Co-Mgrs. in New York
STREET
FIRST NAT'L BANK BLDG.
-r,J:A
...
.•;
CARLISLE,, PA.
^
Alison
Sincere & Go. Apponts
N. Y.
HANOVER
SO.
•A,''
"
Association
PHILIP
40
BANIGAN
the
CO.fy
4,
;,;.vATelephone HAnover 2-8380
J. F.
and
dent of Redden & Co.
YORK
NEW
r.
A
W. J. BANIGAN &
50
PARTNER.
GENERAL
A
OUR
Arcade
Tarletoh L.
Presidents; and Samuel M. Has¬
san,
DAY
THIS
HAS
open-end- f "
an
are
Redden, President; Sim B. Com¬
THAT
ANNOUNCING
IN
PLEASURE
MR.
Announcing the installation of
have
St. Louis
'
Teletype; NY 1-584
Langreth
Redden & Co. Opening in
as Dealer Firm
BOwling Green 9-3565
Teletype NY 1-1666
L.
been admitted as general partners
C. E. Unterberg/& Co.
New York Hans eat ic
George
Corrigan
and
Nelson
Johnstone
•'.7...
,
are
'
now
,co-managers
of the New
York office at 25 Broad Street.
r.
j
Volume
Number 4452
163
THE COMMERCIAL & FINANCIAL CHRONICLE
NASD District No. 8
Credit Men's
Survey Points
To Prosperity in 1946
The Future of the
Elects New Officers
"
CHICAGO, ILL.—L. Raymond
Billett,
Kebbon,
McCormick
&
Co., and Wallace E. Kistner, A. C.
Allyn and Co., Inc., were elected
to the board of governors of Dis¬
.
J Henry H. Heimann, Executive Manager of National Credit Men's )v
Association, Gives Summary of Opinions of Leaders in Organization $
Which Points to Three Years of Full Employment Ahead, < In Year- ^
End Review, he Holds Industry Faces. 1946 With Good Prospects.!
Sees a Balanced Budget by 1948. ;
' \
*
>
trict No.
of the
8
By DONALD
:
and
During the War Will Have No Important Bearing Thereafter,
System Is Not Likely to Become a Permanent Objective of
British Policy.
Holds Sterling Area Need Not Be Restrictive or Dis¬
criminatory if Sterling Becomes Freely Convertible Into Other Cur¬
rencies, and Therefore Urges That Steps Be Taken to Insure Com¬
plete Convertibility of the Pound. Says Dissolution of Sterling
Area as Such Would Not Automatically
Expand but Might Merely
Shift Our Exports.
.
the
On
Council
of
that organiza¬
tion
in
to
would
swung
a
be
back \ to
questionnaire
submitted
by
Henry H. Hei¬
mann, Execu¬
tive
Manager
out,
with
notice¬
a
six
'/
'jf
*
-
of business
Henry H.
Heimann
in his
*
Monthly Business Review,
The
men replying to the questionnaire
represented at least 25 major in-'
diistries.
They were representa¬
fail¬
almost
every
state.
They are recognized as the lead¬
ing credit and financial executives
in the manufacturing and whole¬
ruptcy
the
cases
istered
an
number
of
expect! the earnings of
their
asked by those concerned with in-
whether the
tached to the term.
If their
•
funds.
con¬
may be given,
type would 7 be
required if reference is being made
the
movement
United
another
exist
will
not
mean
.return
a
after
Fund
a
Exchange, with
the
3
will
and
war,
continuation of the
of
International
the
Monetary
Agreement, for example,
specifically provides that a mem-
ex¬
isting dollar pool arrangement?
*
Sterling Convertibility
t
;
Exchange
convertibility may,
necessarily, mean the
but does not
complete
and R.; Lockhart Wilbur, general
partners, and
Hugh McMillan,
special partner.
Mr. Wilbur was
absence
of
WE TAKE
all
Reprinted
Reference
1945.
vember
the
U.
page 24)
on
THAT
ANNOUNCING
MISS MARY VALERIE CORRIGAN
AND
MR. NELSON JOHNSTONE
ARE, NOW, CO-MANAGERS OF
r
v -'-v
OUR NEW YORK OFFICE'
;Jt 7: UlSfti|§;^"
george
products
Sincere and Company
ESTABLISHED 1906
,
.
miss catherine m. lovrich
important
or
MEMBERS
NEW
AND OTHER
have been admitted to
:
•
general partnership in
*U. S. SUGAR
;
25 BROAD
firm.
our
'
.YOllK
STOCK
EXCHANGE
PRINCIPAL EXCHANGES
;
STREET, NEW YORK 4, N.Y.
,<■] '
:>■/
■
,
,
'
■
.
'
Bowling Green 9-8404
r
Cora. & Pfd.
VAN TUYL & ABBE
^MAJESTIC RADIO
Com. & pfd.
•, f
■
;-VH,'M•-.v.Kk-v'
WE ARE PLEASED TO ANNOUNCE THAT
72 Wall Street, New York 5, N. Y.
V,v-I
Telephone HA 2-6622
GREATER NEW YORK
INDUSTRIES
MR. WILLIAM G.
Teletype NY 1-1499
JONES, Jr.
MR. DAVID CRAVEN
January 1# *1943
MR. N. MATTHEW
KAISER-FRAZER CORP.
J
BENDIX
| HAVE BEEN ADMITTED TO GENERAL PARTNERSHIP
ACTIVE MARKETS-
HOME
Industries
<
**
Prospectus
'
("B")
7'
v
By-
Members I"
Common
:
can
"
j'v
.
'
I
•
'
;
i
MR.
HENRY. H. SIULIMAN
of the Guar-.
Security Dealers Assn.
a
-
it
American
their
HAS
WITHDRAWN AS
A LIMITED PARTNER
AND HAS BEEN ADMITTED TO GENERAL PARTNERSHIP
be¬
is
holders
Receipts
Laird
con-
siderablyj njore;; than ■'• the; 'present
Curb price,
,
Arthur
/
Common
'
together,
the
for
secure
:
C.
•
■
'
New
Members
;
Members
York Stock Exchange
York
Chicago
Members
Members
Howard G. Peterson
Company
&
Members New
Babson
Care American Consulate
Madras,-India
/
f
New York Correspondent
Air Cargo
/
,
'
working
lieved ! that
Pfd.
&
Dayton Malleable Iron
J. F, Reilly & Co., in.
:
1
K
anty Trust Company American >Deupository Receipts*" for the 'stock of
//the. Burma. .Corporation.
M
.
"
\
dresses of the holders
;
Kingan Co.
Common
•
.
New York
*
"
Request
on
7
.
.
Request
"
desire to get the names and ad-
United Drill & Tool
;;i^v!!"l:v.'.;..
on
i'
Common
Bought-—Sold—Quoted
Circular
AND THAT
BURMA CORP.
APPLIANCES
Great American
*
tylLSSEN
'M-.
■
Curb
Stock
.
Exchange
Exchange
Chicago Board of Trade
Commodity Exchange, Jnjc/
.
4
40 Exch. PL, New York 5, N. Y.
8ystem Teletype,
Private Wires to
NY 1-2733-34
.
Chicago & Los Angeles
:
'
•'
%
,
We
A
A--:,
A A!
Associated Tel. & Tel.
%
Preferred
67 Wall
HAnover
Riverside Cement
:
Inactive
0
10
*:
POST
'
•
Teletype NY 1-2630
'
Tel.
HUB 1990
be
no
and
'
Broadway
call
New York 6,
N. Y.
Wilmington
Delaware
.
for
-
:
X-i; 7 r:
*
v
"
-
-
are
pleased to
has this
i
announce
that
;
'
Members New York Curb Exchange
-
~
Teletype BS 69
day been admitted
4.'
Chicago Stock Exchange
39 Broadway
Digby 4-3122
New York 6
Teletype NY 1-1610
our
as a
•
firm.
CT
A
^ WALTER KANE, Asst. Mgr.
| Joseph McManus
/
J. hickey, Jr.
general partner in
Vilas &. Hickey
v;
■
SQUARE
9, MASS.
Securities ,1
//MICHAEL HEANEY, Mgr.
Securities
OFFICE
BOSTON
will
'
vote
Mr. Thomas
!
*
LERNER & CO.
V
'
61
New
,
no
We
;"
'
/
•
have
*
,/
Spokane Portland Cement
,V(
2-9335
there
.
Broadway,
6.-0650,.
Curb and Unlisted
Consolidated Cement
Available
CI
receipts
will
'
:
768-1775
City.
proxies,
cement companies
Circulars
Street, New York
Telephone
hence
.-r, , v,-;
Oregon Portland Cement^*
Preferred
JAMES M. T00LAN & CO.
*
believe
17
■
•Associated Tel. & Tel.
6%
DIgby 4-2370
WE SUGGEST
Telephone Bond & Share
7
•
.
Teletype NY 1-1942
operate at capacity for several years.
Preferred
Class
York
*These
09 Broadway, N.Y. 6
Telephone Bond & Share
7
Room.
siegel & co.
HAnover 2-4785
Bell
'
*
;
v •
^
49
;
v
Members Kew Tor\ Stoc\ Exchange
Members New Yor\ Curb Exchange
Wall Street
January 1, 1946
-
; .;;
New York 5, N. Y*
S.
No¬
A
^
.
(Continued
PLEASURE, IN
of
of i Commerce,
Department
controls
International
from
Service
•
New
.
to
the prewar situation when funds
could
move
in and out of the
■
increase on these items.
of
Kingdom
United Kingdom without particu¬
lar difficulty.
Article VI, section,
companies iri 1946 to be
swering this question.", stated the
higher than in 1945; 30% expected
associated with Mr. Crouse in. the
Questionnaire "assume the car you
lower net earnings and 20% look¬
could buy would be the latest pre¬ past at Crouse, Bennet, Smith &
ed for no change in the earnings
war model with minor changes in
Co.; he has recently been in gov¬
figures.
These
estimates were
ernment service.
(Continued on page 19) ^
based on net figures after taxes.
Plant
expansion
will figure
prominently in the 1946 program
of 60% of the companies covered
in this survey.
The question ask¬
We are pleased^ Lo announce that
ed Was; "Is your company plan¬
ning any unusual plant expansion
mr. kenneth b.
or other
unusual capital outlays
in 1946?"
Only 40% reported no
;
and
■
For
vertible
ness,
specializing in - municipal
and corporate bonds and stocks.
Partners ;are Charles B. Crouse
an¬
will be
there be
offices in the Penobscot Building,
to
transact an investment busi¬
filed during 1945 reg¬
area
the
or
the removal of many of the barriers to convertibility which now
type of reply
whereas
trade
over
cern, is with the wartime system,
one
sterling
,o
.
the Detroit Stock
bank¬
"In
is
to its; simplest / expression, the
question revolves around two fac¬
tors;/Will sterling beireely con¬
Company
ment is made of the formation of
& Company, ' members of
all-time low,
automobile in 1946.
••
frequently
and:finance
perpetuated. The answer of course
depends upon the meaning at¬
Crouse
Turning from the affairs of their
companies to their personal; plans
new
••
for
serve
DETROIT, MICH. — Announce¬
history
follow¬
He also pointed to the
that
will
Opens in Detroit
This report, Mr. Heimann
Mr. Heimann tasked the credit ex¬
cent of these top ex- ecutives if
they planned to buy; a
per
the electees
Crouse &
said, was in line with the
of business in all periods
fact
The question most
ternational trade
to the prewar bloc. When reduced
will increase in 1946, accord¬
ing wars.
Clegg, Hurd,
Champaign, 111.;
three-year terms.
to the opinions of 98% of
those replying; to the .question¬
naire.
were
E.
" '
•
,
of
ing
results of this
Fifty
war years,,
pace
The number
ures
survey
ecutives
rapid
a
lems,
.
saling field.
unex¬
.
able reduction in collection prob¬
the
from
an
William
Clegg & Co.,
George F. Noyes, The Illinois Co.,
Chicago; John R. Schermer, John
R. Schermer and Company, Grand
Rapids, and Max J. Stringer, .Watling, 'Lerchen & Co.,* Detroit. All
•
Mr.: Heimann
tives
not
was
Manley & Co., Detroit,
succeed
they
as
.
M. A.
peacetime pro¬
a
during the
as
been at
organization.
announces
This
difficult
•
the
elected to the district committee to
turn¬
over :" of accounts. receivable has
n's
m e
of
indicat¬
pected reply Mr; Heimann, pointed
of the national
;
more
duction.
credit
collection
ed that this feature of their work
re¬
sponse
matter of
accounts receivable, 90%
IIEATIIERINGTON*
Commerce Department Expert Holds That Because the Economic
Forces Which Gave Rise to the Creation of the
Sterling Area Before
National Asso¬
ciation of Securities Dealers, suc¬
ceeding Ralph Chapman, Farwell,
Prosperity for industry in 1946 is shown in. opinions expressed Chapman & Co., and R. Winfield
by the past and present officers of the National: Association of Credit Ellis, Lee Higginson Corporation,
whose terms expire on Jan. 15. %
Men,members
Herbert B. White, Peoria, 111.;
the Board
changes in prewar products were
Howard .E. Buhse, Hornblower &
of
Directors
indicated by 75% while only 25%
Weeks,
Chicago;
Elwood
H.
and the offi¬
reported no plans for, changes in
Schneider, E. H. Schneider & Co.,
cers of the
products.
I
[' Kalamazoo, and Milton A.
Manley,
*S ecretarial
.
F.
British Empire Unit, Department of Commerce
r
'
<.
,
-J.
THE COMMERCIAL <5 FINANCIAL
The First Constructive
This Year Will Be Determined
(From the "Business Bulletin," issued by the LaSalle
Extension University, a Correspondence Institution,
;
Business
the
enters
new
with
year
the
rate
of
declining but holding up better during the reconversion period than
was generally expected.
Produc- *
lion
in
creased
few
industries
some
from
weeks
the
low
and
ago
has
in¬
Production Down;
point of.a
dustry during 1945
tries
are:
about
ready
to
go
ahead unless prevented by short¬
and
ages
of
terms
work
same
In
In
stoppages. '
fundamental
and
at
level
a
far
as
was
anticipated.
show
the
year
ago.
respects
favorable than
it
was
The indicators which
current
situation
best
those of business volume and
are
above
a
significant
many
about the
was
forecast
was even more
economic
conditions, the stage is: set for a
good .year. If everyone works to¬
gether it can be a satisfactory one
for all
;
The movement of trade and in¬
indus-
otner
Sales Up
industrial production. Both have
(Continued on page 32)
that of the prewar years.
industry,
ing out that "reconversion is
John D. Small
tion
announ¬
0vne
Z/iveeOj.
$/a*A>
W0:b:/
A
presenting $iis
monthly
port
tion. ;,
;
"All-out pro¬
can
expected
9t)ecejjider~
iXy y<~AY<
iV |p y 09
v
'•
r
i:
$
3/at,
,
basic materials
"'y/. ^v. /, v.v. j
■
1
•
"
be
minous
rap¬
optimism and provide the most fa¬
vorable possible monetary condi¬
tions for business expansion."
Accompanying
freight
power
or
housewives who
differences,"
J.
D.
keeping, while
tions
dustrial
and
later
f/JeadtfrP* in anneuncina, t/iat
t9(w. j/tfewmt, S$.
WE
'
•
l.
■
-
0
'
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•
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:
•
AS
" '
t-
'
—
A
iK
t/ui,
dcirf
r
PARTNER
/.'■»•> J. ■>
v
if/.u /
'
«"-»•
«j',w
j,
"
OF THIS
^
'
; ;;
'
r-r-r—. ■ ;;;■ 1—;
b'
9£ang.mf/t
WE
' '•
ai
'
,
L
:
v."
"-v»? n^-/ L'
-
...
pa>v^ K
•-
PLEASED TO
»
••'
the
. —
#)r ?,^ ^-A>-V
ANNOUNCE THAT
-"p.
.
*y
side, Mr. Small's
that
in¬
numerous
who "went
ihdustries
he
to
over
war
-
Among
needing workers,
mentioned
textiles, lumber,
building materials and foundries,
Also, he said, there are still
.
critical
shortages of certain bot¬
parts slowing down the
production of consumer goods for
^
tleneck
MR. JAMES W. WOLFF
in,
debit
work, and who now seem reluctant
to return to their old jobs.
FIRM
MR. HERMAN P. LIBERMAN
admitted
the
,
,
j. .,„■.,,, ■■■■..■•■ ..
"
V/v-v-v^-V1':V"'\
ARE
v
.
/;.f •/: ,;f.
1
jfeen
aeHejed//ler/ptnerS
a-vA,.,
—
.
/(t
GENERAL
VA
s
jobs
on.
workers
*
■
^
>
vaca¬
seeking
the, loss of skilled and unskilled
HARRY GRABOSKY
■
be
dustries, vital to over-all produc¬
tion,- are seriously handicapped by
REGRET TO ANNOUNCE THE WITHDRAWAL OF
MR.
•
ts'iiw. Accrue 9£.
will
report stated
*-
voluntarily tak¬
ing long and much-needed
On
*$5
engaged in
veterans and
many
war workers are
output.
"Despite the high level of in¬
activity, the heavy de-
Small
he said, point-
were
work have returned to house¬
war
loadings and electric
car
unemploy¬
figures, was a word of cau¬
tion that these figures
may not re¬
flect the whole picture; for many
This is also true of such basic in¬
dexes
of
industrial
activity as
of
the
ment
coal is. running- about
ahead of the 1941 rate.
equal to
'•
.
kets continue to reflect the utmost
practically
steel and bitu¬
as
dropped off sharply,
15% since last July; yet consumer
expenditures have shown no ten¬
dency to decline and employment
has held up well. .Financial mar¬
ly responsible for the sharp No¬
vember rise. Production of such
present labor.-
SMS
in
has
the flow of civilian goods has not
yet had,time to increase, and na¬
tional income has
dropped 10% to
now
industry, but raw materials
and basic services were principal¬
produc¬
duction
duction
every
civil¬
on
ian
registered
were
re¬
management
..
-Jh&b 0-
.
ing until goods of peacetime qual¬
ity were available. Munitions pro¬
rise in industrial production, CPA
Administrator Small said "gains
ced Dec. 28 in
tlem ent
tO
a general
unwillingness on
the part of the bublic .to start
buy¬
reaching satisfactory proportions."
"^Commenting on the November
Administra¬
idly after set-:
9'Wb
and of
with
Prod uction
stated.
fVcts have not borne out the pes¬
simistic forecasts of Inass idleness
virtually completed in most plants
some
production
already
of the Civilian
housing
In' describing the progress of re¬
Mr/ Small said "the
.
Ad¬
ministrator
clothing,
ply/' Mr. Small
Industrial production turned upwards in November for the first
time since V-E Day vrith gains being .registered in
practically every
activity, still
textiles,
conversion,
Serious Problem.
'
Current demands for sheet
and many
consumer iteras^ foTCX'ample, are far in excess of sup¬
Materialized, but That Full Speed Ahead for Production Has Been
Prevented by Industrial Disputes.
Says Textile Shortage-Is Most
Chicago, Illinois.)
V
cases..
steel,
John D. Small, CPA
Administrator^ in Releasing Report of His
AnaiyticaL Staff^ Maintains J That: Reconversion Is Virtually Com^
pleted, and That Pessimistic Forecasts, of Unemployment Have Not
Largfely by Eco¬
conversion Being Rapidly Completed in Most Plants-—In Spite of
Unsettling Conditions, Relative Stability in the General Average
of All Activity.
^
mands of both consumers and
pro¬
ducers are not being met in all
Full Production Efforts
nomics Rather Tiian by War, for tire First Time in Six ,Years—Re»
Thursday, January 3, 1946
,
Says Strikes Handicap
11^
Business Trends
CftRONICLE
eft*
MR.
S.
which the public is clamoring.
NATHAN SNELLENBURG
-
MR.
HAVE BEEN
(!f
•
ROBERT S.
"until
ADMITTED
^-V. u'0-, 9990;:
,
AS
}0j 0th
GENERAL PARTNERS
9;'.
\
Newburger
MEMBERS
MEMBERS
YORK
YORK
CURB
PHILADELPHIA
JANUARY 1,
J. FALSEY
STOCK
•
EXCHANGE
Administration - is doing
LEBANON, PA.
'<
-V
'
'4/
,
V"i
duction Administration is taking.
They are: ;
1'^;:
-r*..
'>nv *
x >■
partners
Members J{ew
T*. ■*!•,;
\\
% /.v
:<
i
•
:
every
The^^ report ^^ outlined seven prin¬
cipal steps which the Civilian Pro¬
(1)
/A 'Vi• **
>A.
'<
*
.
basic
''
and,
LEVY
WHO
HAVE
FOR
NEW HAVEN
MANY
BEEN
ASSOCIATED
YEARS
HAVE
THIS
WITH
ORE ELY
M R.
PARTNER
WILL
IN
ST.
BE
do
BEEN.:
it
is
evident
much
,
to
assist
increased
production by granting special
ratings or in certain cases by rec¬
ommending some justifiable price
IN OUR
January 2, 1946.
FI RM.
whei*e
cases
sibility of widespread production
slow-dpwnsi^the Civilian Pioduction Administration has been able
US
to
DAY
ADM ITT ED AS GENERAL PARTNERS
in
that supply will fall far short of
the demand, and threaten the pos¬
<v
YorJj; Stoc\ Exchange
A careful study of the de¬
positions
of
key
materials has beep made
mand-supply
rfiy:
MR. WALTER J. CREELY
CHAS. W. SCRANTON & CO
'•«'
a
one
thing in its power to speed pro¬
duction and
break bottlenecks.;
1948
MR. GUSTAVE L.
,1
by
stoppage in the plant of
suppliers."
Mr. Small explained in his re¬
port that the Civilian Production
(ASSOCIATE)
WE TAKE PLEASURE IN ANNOUNCING THAT
general
agree¬
.
-
as
complete
of their
firm
to our
in
be
may
Work
MR. PAUL L. SAMPSELL
have been admitted
wide¬
ment and still be shut clown
6, N. Y.
HARR1SBURG. PA.
•
settlement of
manufacturer and his work¬
a
ers
EXCHANGE
EXCHANGE
ATLANTIC CITY, N. J.
MR. WILLIAM
YORK
STOCK
PHILADELPHIA
MEMBERS NEW
pleasure in announcing that
NEW
as
Hano
NEW
after
spread i labor-management differ¬
ences.
This is doubly important,
v?:rl"
&
39 BROADWAY
We take
"Full-speed ahead cannot be
achieved," Mr. Small emphasized
THANHAUSER
R ES1DENT
increases.
LOUIS.
'
••••
'
A
'■b:jv'b:b>S
■
,
!'■ :,V '
.
'
.
We
are
pleased to
'[bS.
7'
'."■''vS'fr:
7
-
'
I
%
(2) The C i v i 1 i a
Administration
has
j.i
r''
I
"
'
/
steps
GOLDMAN, SACHS & CO.
'V;
:'-'U
'
•■
New York
Boston
Chicago
basic
Philadelphia
january
1st
19-48,
preventshoarding and pre-emptive
IpTlhghy^^ictcbHtrols ihinvoh-?;
now
associated with
us as
tories.
Manager
We
|rf;y
are
pleased
to
announce*
that
:
CORPORA TE TRADING DEPARTMENT
-
'
"9'
V.i
*:
*
"
»»
•
<
-,
''
^
J-
9 '
'V
*
f
^,'c\?] v >L'
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4"J
j*"*
^r
1
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r
^
99'''9'
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Service with the U. S. Army is now
•>
this
.
*
.
SCHOELLKOPF, IIUTTON
&
Manager of
Trading Department
our
POMEROY, INC.
'
.
"»S'
*
.
may
be granted. Although
rating is, and will continue to
be. used very
abled
many
production,
sparingly, it has en¬
factories to get into
that
were
stooped for lack of
BUFFALO
Clark
NEW YORK
■
Members
January 2,1946
-
>
New
York
Security
Dealers
sistance.
;
■
';;;■*
\
Wall
St.,
New
York
5
v
formerly
one
item
Telephone WHitehall 3-1885
•
,
•.
.
(5)
A close check is kept on our
export market, both to see to it
-
40
some
which thev could prove could not
be secured without priorities as¬
Association
' National Association of Security Dealers
^
,
One of the most powerful
ratings
''
recently returned from Active
V<v
'
„
(4)
instruments for clearing up cripnling bottlenecks is CPA's Priori¬
ties Regulation 28 by which CC
Paul A. Zizelman Jr.
New York Office
•
•
taken
to limit the use of scarce
materials, such as tin. and
tion 32,. CPA. does, its utmost to
JOHN P. GA1IAN
Is
also
rubber, to essential needs so as to
avoid dangerous depletion of our
stockpiles.
(3) Through Priorities Regula¬
sr. Louis
that
announce
Production
n
v
(Continued
on
page
42)
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
162
Prescott & Co. Admit
Sees Solution of
Towell and Jones
s'
7.'1:
•
*
\
.»
••
.
:j
;
■.
■-'* :■
.
j y.V;
,
Dr. Max
Winkler, Stating: That Though Preient Conditions Do Not
Encouraging, * if the Harmony, Among. Allies, as During g
War, Will Prevail in Present Period, There-Will Be ;Marked; Ac¬
tivity m lnternational Economics and Finance. -, ^
?
5
I Appear
'
Winkler*. .of-Bernard,- Winkler & . Cov members of fhe
York Stock Exchange,' says that "examining developments which
Dr. Max
; New
likely
tare
to
within
occur,
Billings Olcott to Admit /
the 1 coming
year
Billings, Olcott & Co., 26 Broad¬
way, New York City, members of
in the
realm
of
in¬
the
tern at i onal
will
politics
and
economics, the
adoption :, o ;f
optimism i n
regard to a
'•■sa t i s factory
-
York
admit
Hummel
Stock
Charles
..
,
Partners
Wharton School of the University
D.--Pmscotti &
and
Edward
P.
Prescott
Morton. J. -Stone
have.\also
returned to Prescott &
Co. after three years of war serv¬
of,
Pennsylvania and the Babson
Institute,
entered -the
security
recently
Co., Guardian Building, members
business in 1929 with Otis & Co. ice .in
Washington, Mr. Prescott
Exchange,
From 1931 to 1942 he was asso¬ as Colonel with the
Army Service
are announcing the admission of
ciated with the
Forces ;-and Mr, Stone as
Stocjc Exchange
Thomas H. Jones, Jr., and B'er/Lieut.
firm of E, A. Pierce & Co. and Commander with the
Navy. I Other
riard A. Towell as, general partits
successor,
Merrill
Lynch, partners in the firm, which was
hers;y#$^
Pierce, Fenner & Beane.
Three formed ; in
January,■ • 1934, I are
Mr, Jones Jias returned to Cleyeyears ago he went to Washington
Lloyd O. Birchard and Harvey A.
land after nearly four years of
as chief of the fats
salvage sec¬ Gotschall, Cleveland, and Gilbert
army service; being /stationed for
tion of the War Production Board. L. King and Edward
D/Untersome timer with thQ Fifteenth Air
He later served with the Office myer, New
York, the latter a spe¬
Force: in -Italy as lieutenant and of
Strategic Services as liaison cial ' partner,
v "v
squadron combat intelligence offi¬
v
for
cer
Liberator bombardment
a
He ' formerly headed the
group.y
investment. firni of T1 H. Jones &
to
partnership as of Jan. 10. Mr.
Hughes has been with the firm for
some time in
charge of the in¬
vestment department.
Co7, which in • 1941 was*merged
into
Prescott, Jones & Co., under-
writing'affiliate
of Prescott & Co.
John
Barretv
H.
Howard H. Fitch
problems con¬
fronting
attending
after
the
of
officpr with the Navy, and State
Departments.,- <
• /
v'
>r'1
Towell,
of the New York Stock
H. Hughes
Thomas
and
Exchange,
Frederick
,
Mr.
of
solution
most
New
^^j^VEI^ND,::
University,
class of 1937. ^
r:-
International Problems
•...
He attended Princeton
the
and
world appears
a m
s'
p
1
ranted.
war¬
y
'
WE TAKE
PLEASURE
IN
Frank W.
ANNOUNCING THAT
:
'
North
-rs''i1:, *::■
"To be sure,
in
the
co al
politi¬
f ie 1
Dr.
Max
ON JANUARY 2,
Winkler
ANNOUNCE THE
1946, THE FOLLOWING
OF
FORMATION
civ"-....
condi¬
continues,
Dr. /"Winkler
WILL BE
tions at the moment do not appear
ADMITTEb.TO
'
THE FIRM
Barret,
;
l'."
;V
■
■
.
'
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,
AS
"•;
Jr
.?•
,
K.
*
•
+
";i.Y
.
IN
'w
OF
'
..
'
arrangements,;, espe¬
cially in- Eastern Europe and .the.
Adriatic and Balkan areas; the
mr.
■
.s
.
V-
charles
w.
SECURITIES
INVESTMENT
.
M
[
.
-piA.
v.'.
i
PERMANENT
territorial
i'.
UNDERWRITING iAND^ DISTRIBUTION
THE
r.r
■
VI.';:
ENGAGE
'
PARTNERS
'V
:'Vr
TO
<+
Fitch 8c Co., inc.
'
7
particularly
encouraging: * The
question of creating a central gov¬
ernment in Germany, acceptable
to all, or at least to the principal
Allied powers; the dispute over
■'
-
QUARTERS
■
'
■
TO
OCCUPIED
BE
'
ON OR ABOUT
qui net
d«
"
FEBRUARY
.
mr.
-proolem of displaced populations
and the economic and financial
reconstruction of the European
continent; the controversies in the
Near East, including Palestipeand
Iran: the recognition of the .importance of the Azerbaijan area
to Russia, because of the prox¬
imity" of that region to. the; Baku
t oil.,.fields,. Upon,. which % depends
; Ru*sia'6y security
ahd economic
well-being; the .problem of Cthe
'r .:: mr.
leslie
charues
e.
rowell
1004
DW1GHT. BUILDING
I, 1946 AT 815
BALTIMORE
KANSAS CITY 6, MISSOURI
AVE.
p. burqess
-
mr.
charles
horton
c.
If
-
unification
of
,,
China;
'
&■■■:•
questions
'"■■■
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'•:<!
-
*
-;){£%
*
*
'M-
('t..
•.
f.vf
■
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.
•
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Kaiser 5.
-
•••
■
-■
.
i•
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Co.
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'•
the
v
-• ■"
_
;••;'
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Thomas L. Hume Sons
-*■>.
members
■
NEW YORK
STOCK
INCORPORAT
"
EXCHANGE
SAN
<0
'
FRANCISCO. STOCK EXCHANGE
f ■ ?■
Successor
;•
the
SAN
Ml.X-
v
NEW YORK CURB EXCWANGE
the Proprietorship
to
NEW YORK
FRANCISCO
thomas l. hume
gan»zation (UNO) will endeavor
cope with during the coming
'year..;y"■''/■;////f "/If'.'/
• /'■" 1/
"It is hoped ancl confidently ex¬
pected," ; says Dr. Winkler, "that
the harmony which characterized
of
'
'
(Established 18(99).
to
action
-v":
Announcing the Formation of
ifff-Uj*."■
-present and coming meetings,: and
Which the /United/National"^?
the
.•
,
thp Council of Foreign/Ministers
will occupy themselves during
k
IIIS .TiJRkiNSf
■m
arising -from the existing contro¬
versy.. in India.and the Austral¬
asian sphere,particularlyas. re¬
gards the British, French and
Dutch colonies; the settlement of
political disputes and the estab¬
lishment of a unified government
in
Korea; the problem arising
from the attempted rehabilitation
And democi^tiztaion of Japan^-all
these are problems with which
i
:
'
'4 ''4'
Specialists
Allied Nations
in
:
,
Washington, DJC,' Securities.
Members Washington Stock Exchange
during the conflict, will also be
evidence during the existing
>:rv
in
crisis which is the inevitable
sult
of
almost
six; years
of
re¬
917 13th
war
St., N. WA'l
Washington 3, D. C.
and the disorganization and dislo¬
cation caused thereby.
"Since it is generally
Dr.
fcbheeded,"
Winkler
concludes, "that the
economic well-being of the world
is Wholly or; very / largely de¬
pendent upon political peace and
tranquility, the solution of all, or
most
of
thn above
problems
should result in marked activity
-
$ 4^4 >r
-
in the realm of international
We take pleasure
in announcing that
eco¬
nomics and finance."
investment
F. I. duPont Co.
Opens
Francis 1. duPont & Co., mem¬
of the New York Stock Ex¬
change,
announce the opening of a
branch office in the Biltmore
and
<
.
City,
BEEN
FROM
ACTIVE
IN THIS FIRM
*:
«
-■
Exchange and
leading commodity exchanges. ;-/iy
Private Wires
•
Home Office: Atlanta
•
''A'.
'
'
-
rV"
l*~<
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.
DUTY
.
V;.
McDONALD-MOORE & CO.
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Phone LD«159
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2nd, 1946
^T,
'
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,f
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tx
A A % * ''n>
Grand Rapids
Detroit
•
Jan.
Members'Detroit Stock Exchange
-•
.
Flint
t
general partnership
in our firm
■'
'
^
J
The firm, with main offices at 1
Wall Street, is also a member of
the New York Curb
RELEASED
v
h-
AND HAVE RESUMED AS GENERAL PARTNERS
com¬
/
have been admitted to
'
JACK F. GLENN, Lt., U. S. N. R.
HAVE
plete facilities, with personalized
'
"
s
Hotel, 44th Street and Vanderbilt
Avenue, with Earl T. Shaw as
manager,.; The
new/ office, / the
service for each client.
HAROLD R. CHAPEL: 'X
MALON C. COURTS, Lt. Comm., U. S. N. R.
bers
firm's tenth in New York
will offer midtown investors
and
TAKE PLEASURE IN ANNOUNCING THAT
Tenth New ;York Branch i
new
DON W. MILLER
bankers
'i-Hl *■ It-y"s•'
*-X
n
%:&><*
'
-
Jv-JcVVV
y
"
Halladay Admitting Dietz
Kenneth F. Dietz will become
Van
bers of the New York Stock Ex¬
change,
Admit
Barret, Fitch & Go,
<
admitted
Frank
partnership
Fitchg and
H.
North
W.
the
announce
formation.-of BarFet,- Fitch - & Cd.i
BALTIMORE
More Prodnctioit
CITY; MO."--John H.
Howard
Barret,
have been
general
to
KANSAS'
George 9pd Miss
M. Lovrich
Catherine
New) NAM; Head Pledges
lorinedHilCRhs^Biiifs
Parliiers®|.
"r^e^nkh- Rv
Jan. 10.
on
Tuyl & Abbe g
a
partner in Halladav & Co.>? 14
Wall Street, New York City, mem¬
Robfrt R- Wason Says 1946 Can Set a New High in Civilian Pro- '
dacti6n.' Rr J.; Dearborn, Chairman of NAM
Patent. Committee,
'
inc;y!to. engage in the vUhderwtitT
Looks. for Reform in Patent Situation and Favors
Creation of
National Research Foundation.
ing and distribution of- investment
the-> firm
will be located af 1004 Baltimore
Offices
securities.
Bayway Terminal
Avenue.
u
Davis Coal & Coke
STEIN bros. & BOYCE
Baltimore
in
ST., BALTIMORE 2
2-3327
Miss C. M. Lovrich
72 Wall
Railway and Liglit
Kenneth B. CfeWge
was
r-
The
DES MOINES
S'-3V;vi-
fNCORPdRATEO'
each
since
year
■
Selling
.
;?
'J
'
v
Rath
du font,
v.
.'.--.A,,
Homsey Co.
>'
.
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-
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Bell Tele. DM
DETROIT
.A:
Manufacturing Corp.*
r
-
'
•
jReports
..
furnished'
*■
•
-
■
*T ni port
pro-1
of
g
y
vides for the expiration of
ent
for all of us..A
these goals
y 3.
demand'
that
every
Robert R.
Manager of the Mu)
He has
participated
the
and
every government rule and regu¬
be
j
Exchange
•
Association; of
ises
missioned
in
the
Army- of
Which time he
•
.
.
most
::p r o
pressing
b l em p
V w h i
' v
c
A country's pat-
Dependable
V
Markets, -i
inquiries Invited
war
period.
Company would benefit substantial¬
ly from tax reduction.
Oregon's
huge
highway 'program
ready to start.
_
i
Js'-*
••
•
•
•«
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'I
.■/;
}
j.
POST
white, noble & co.
Tel. HUB 1990
I
SQUARE'V9, MASS.
* v
/
■
OFFICE
BOSTON
Stern
;
City, Missouri.
.
Frank W. North attended >. pre¬
in Kansas City
graduation fromag the
School, University i of
Pennsylvania, in 1934, he returned
to this. city.
In 1935 he. became
:
GRAND RAPIDS 2
\
.
MICH. TRUST BLDG.
..
Phone 94336
"
?
and
■
»
' ■
g
Teletype GR 184
school
upon
Wharton
a
Teletype BS 69
member of Stern Bros.
sales 'organization.
CINCINNATI
LOUISVILLE
&! Co.
This associa-
.
Patent
Com¬
mittee'.'a p A
.pointed
by
>• R.
J.
President Tru-
Dearborn
i| man: last May
to
advise
Secretary Wallace in
making recommendations for pat¬
ent
reforms; ^ (2)
proposals for
■
some, form of compulsory: licens¬
ing of patents; (3) the role of the
Government in research, especial¬
ly in connection With the proposed
formation
search
the
of.
Hialeah Race Course
.
Louisville Gas Pref*
••
.
r-•
,•>.
yyy y)':yyS'y:
Stix: & Go.
\
yy'yyyi. yyyy. yyyyy % y-, ?
|
t
Ho ran & Griscliy
CINCINNATI
2
Teletype CI 3i7
1st
"
.
.
-.j
vj.;V
^
LOUISVILLE
■•
(,4)
"this; country's
of
\
-
2, KENTUCKY
> Ty
#
A' Y
'
V
.!•
;
Bell Tele. LS 186
patent A reform
legislation,"
the Association believes that the
;
director of the proposed Founda¬
tion should be responsible to and :
appointed by; a board, named by
Presid
President, and which should
comprise ; outstanding
scientists
the
the
with power to formulate the
Exchange
over-
all. policiesof
the Foundation.
Moreover, legislation with respect
to Government patents should not
be in a bill' |or A a National
Re-;
search Foundation,and.Such legis-'
lation
should
be
considered. sep¬
r A
arately/'
■
Two Join Staff
Tripp & Go. in N. Y.
Tripp
&
Co., A incW 40 tWall
Street, New York City, announce
stated Mr. Dearborn. "In the last
of
few years
now
the Association has sup¬
ported 12 patent bills. At' the same
tion
•
continued
until
the
L
late
1941 when Mr. North
Army Of the United
States. A He was commissioned in
the
Field A Artillery
and served
Spring
Marshall H.
Lionel D.
Wood, formerly
Edie
associated
&
Co., Inc.; is
with-
them
in
charge of Municipal Research, and
Kenneth H. Wood is with them in
the retail sales department. A
of
ioined
the
Now Stern &
•V Effective Jan.
of
1
Kennedy A
the firm
name
Allison Stern & Co.,
Infantry Division through
the
Italian
Campaign.
He has
just been released from; active
25 Broad
Street, New York City, members
duty with the Army.
was
an
,
*
a
National A Research
Foundation,"
Mr. Dearborn declared. "However,
that
with
Members St. Louis Stock
of
V"
j
Floor, Kentucky Home Life Bldg.
Long Distance 238-9
STREET
ysyyy ■iy?yycyr. yyyyy-'1:
St. Louis L>Io.
IE BANKERS BOKD
;
Re¬
living standards:' Y
'•"NAM favors the creation
Atomic
INVESTMENT SECURITIES
509 OLIVE
Incorporated
sive rights before he has an op¬
portunity tp reap any:reward;. (2>
be most damagingrto * small busi- ;
ness and independent inventors as
it would destroy their, strongest A
weapon of competition and would A
legitimatize; piracy of inventions; <
(3) influence adversely the char-«
acter of research and (4))' mean,
in effect, a sharing
of;inventions;
by placing, the emphasis on the A
Patents, has led the country in
advocating sound: and construc¬
Winn & Lovett Grocery
■
and
"NAMA through its Committee
j
pat-"
ents, he declared,' would: (1) force
inventor to give up his exclu-1
an
on
gg
Girdler Corporation
SECURITIES
'5::':!;;-V
"Compulsory ^licensing of
tive
American Turf Ass'n
it would strike'at the very;
< of
the patent. sys¬
Energy Commission for control of
mbderriizafioh
!
American Barge Line.
CIN CI ANA TI
National
Foundation
research; in A atomic! energy;
ST. LOUIS
as
to higher
A Mr
said,
'will - be:/; (l)
the report of
,
.Survey
trade-mark laws,.
UNION TRUST BLDG.
•
division rather than the multipli¬
cation of wealth which is essential
the
Brps^&SC0r»
engaging in the underwriting of
corporate and municipal, secufia past President
of the University Club of Kansas
paratory
12%
Members Detroit Stock Exchange
10
of
-
Dearborn
relievedffrom
ties. Mr. Fitch is
!
■
Director
:
Circular available
LERNER & CO.
•
ent.system jin
A
.
about
,
Trade¬
v
*•
19 4 6
the-
active duty and resumed!hi$ ac-,
tivities. as ' Vice-President rand
Michigan Securities
hi will
A confront;! this
r
Capacity-—900,000 barrels annually.
Book value—^around $18.
-
Market
"Among the
.
May^-1942, -86^
was
.critical
for this
;; country's pat A
Acnt system.! A
year
ing in various administrative ca¬
pacities until June 1.; 1945;>ai
-
be the
10
most
Security
(
Uaited States in
,
•
the
'
tem;'4
Patents of the Na¬
on
YtbTm^tenrBrbsL--8r Co:;f .wascqrrt*
g
->
R. J. Dearborn, Chairman of the
Committee
Mr. Fitch, on leave of absence
s
GRAND RAPIDS
through
,
f
,
1
.
able
Security Dealers, hav¬
ing been member of the Munici-
Dealers:
" Buhl Bfdg., Detroit 26!
i
Cadillac 5752
Tele. DE507
Telephone-
all
<
-
fundamentals
ciation of
A?
Oregon Portland Cement Co.
earnings
-
^. Recording-of agreement re¬
lating to patents*. ,'' l>r
•
p
6. Passage
with
appropriate
amendment of the Patents Prior¬
ity Bill:,
'
~
its people,?and- for .the world."
.
Good
?•-
-
v
which-America y^ins the Peace for
,
•
mark Act.
activities^ of the
Invest^ tional Association of Manufactur¬
iment
Bankers ! AssohiatiopiW;6f
ers,; stated that:-this year prom¬
I American and the Natioh'a IJ AssO-*1
;tional
'
•
Wason
°
;
'
Improvement of
4.
V
;policyAA every!
'
Simplification of accounting
procedure.
^District Board No, 5 of the; Na-
REctor 2-5035
•
pat¬
a
more;
procedure.....
public
must
«
Common Class "A"
not
than 20 years after
application but retaining the term
of a patent at 17 years.
<
•'
.(
2. Simplification;?; of-.appellate
Securities Committee of the
Investment ^.Bankers WAss^lallon'
several terms1! arid a member of
D 75 Federal Street, Boston 10.
We Suggest
j
early passage, Mr. Dearborn said,
the following:>'*;//-'5
y
1. The 20-year bill ; which
pro¬
living
law,
/
patent reforms
supports and lirges
are
M "ToA -attain
the
?
-
a n t
NAM
-
& Dolphyn
Dayton Haigne; & Company
Private New York
rd
largely
to making this coun¬
leading industrial nation
the
which
pal
Members Detroit Stock
" •
-
Mercier, McDowell
Signal
>.
request
on
■ t ■:
■
•
.
New England Lime Common
'
in:
the world and has
m
of the world.v
|
ductive enter¬
January^. 1945, he lation
Vice-Pres-;
ident and member of the'-; board
in
■
<
Securities
Department,
of directors.
■
Boston & Maine Prior PfdL
became
nicipal
f
Shelter
-
Boston Edison
Submarine
larger:
•number of
a
jobs
try
;j|
ere-
.
or
contributed
J
s.
same year,
.'
:
Howard I%i; Fitch "bapie tp/.Kan¬
he
■
;t ^yy^y-y y- yy.; t;?■ ■ ah■
AA;
can
weakeh
foundations of*'"the
System which is; the
.
Electromaster, Inc.
TRADING MARKETS
ate
op-
of ^anv ; act
to
,
•;
.y
Teletype BS 424
:
of
.
BOSTON 9, MASS.
Capitol 4330
They
best
civilv
-
good
the
Patent
■
sas
Packing Co.
Phone 4-7159
; /<v
a n
U.S.
tend
bor5 3hdi agripylture must recog¬ -A 7. Simplification of the patent
nize' that they are running ja race document.
City from Lawrence, Kansas,
against" inflation, and that : this :8. Simplification of Patent Of¬
upon graduation from the i U-ni-i
race can be; won only - by drastic
fice procedure.
Versity Of Kansas in* 1924. j Prior
curtailment of Federal expendi¬
9. Establishment
of
a
public
to
attending the University of tures
arid by - permitting nothing register of patents available for
Kansas he graduated ifr0nv S»h4tto; stand; in the way of unparal¬ licensing.
'
;
tuck School, Faribault,*.Minn.
In leled
"With the report of Secretary
production.
|
October, 1924, he became .asso¬
yA'Abieircan- Industry is deter¬ Wallace's patent survey commit¬
ciated with Stern Brothers ;& Co.;
mined to do its part in bringing tee expected
early in 1946, the
Investment Bankers, in Kansas
forth this flow of goods, v With question of compulsory licensing
Citivas a member of the munici-,
Mual detefminatibh arid withfhe of patents will assume increased
pal department, of which, he has
cooperation! orr the part of -labor; importance. NAM, Mr. Dearborn'
,been a member, until .his
xesigna^
stated, believes that compulsory *
tion Dec. HO, 1945.1 - ^puririg ;;his agriculture,-.and; the government,
•1946
will | become • the year
in licensing in any form is undesir- V:
association with Steitn Bros. &: Co',
All
EQUITABLE BUILDING
DES MOINES 9, IOWA
y ^ S y "Jv'
Shawmut Bank Building
In '
the" Na¬
of
Governors
June of
Common
request
on
Association
■>.
Preferred#
asset value.
Descriptive memorandum
Co]
United LigEt & Rys.
'
J
destroy
:
yigoroiisly:
most
would
a
,
except
;•
r
lias
Ihe7 ; passage
which
can
designed to encourage
was
elected Treasurer * Of N ASD,'
production.
a position which he resigned
in
"Government, management, ia-
Preferreds
below net
about 28%
member of the
a
of
Dealers.
,
it
Iowa Power & Light
shares
1910,
1933-1935.
:
(
all-;
new
tion. of
c
man¬
Bankers Association and
tional
J
'
a
prise.A; The
Southwestern''Group vof" Ih^
Board
in United StAtes
common
Company as sales
secretary., - -. ^
ves cinent
WHEELOCK & CUMMINS
Outstanding Record of p&ying
,
Prescott-Wright-
associated with Stern Broth¬
he has also been
Tke''oldest leverage investment
on
for
Mr.' Barret has been a member
of the Executive Committee of
COMMON STOCK
dividends
'investment ' business
ager and
-
company
;the . American: people
it
that^j pbsect
time .record;
i
Corps.-- In Kansas
he-was first identified with
and
ers
Street, New York City.
"A'\V
Securities Co.
■
l J4b
Snider; Company. .From; i932 un^ cati provide a
til he resigned in June, 1945, he
higher stand-
in the firm of Van Tuyl & Abbe,
•V-.V:.'-
gradu¬
;
seiwed-.over¬
the Medical
statistician
BOSTON
He
with
W: C. Syly®st6t.r Investment Cam^
hahy^®FrbmT928 to^^ 4932Fhh^^^
'' Bell Teletype BA 393
New York Telephone Rector
he
which
1918.
in World War I for 40 -months
City
the'
Stock
Exchanges and other leading exchanges
•A
.s<^ys.'
in
forAproduc,-i
in
6 S. CALVERT
Robert K.-Wason.' newly electeesPresident of the ^National Associ-, time
'■
Karsas
vbji'sity,from
seas
&
to
set
ated
York
! V'" 1
*
He .was; educated " at ;Lawr.ence-:
villa School* and Princeton Uht-
Common
New
; ■''
came
City from Kentucky 2o'years ago.
Emerson Drug
Members
:
•
•
John H. Barret
of
of the New York Stock Exchange,
changed to Stern & Kennedy.
"Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
163
11
Sees Slow Reconversion Progress Brftisb Loan Facilitates Anglo-Canadian
Guaranty Trust Company of New York Lays Difficulty to Endeavor '
Reconcile the Objective of Price Stabilization With Maximum
to
Production.
Says Government's Wage-Price Policy vContains Potential Elements of Danger but Holds in Spite of Difficulties, Present
Conditions Warrant Moderate Optimism on Near-Term Outlook.
^
-
-
^
■
The year-end issue of "The Guaranty Survey" published by the
Guaranty Trust Company of New York discusses the developments in
1943 and some factors in the'im-<g ■ ■
—
mediate outlook. Noting that the
Jheavy decline in war production
:folio wing V-J day; has been offset
only to a very limited extent by
rates but also endorsed the view
that, as a general rule, wages can
ahd should be raised without cor¬
of
responding price increases. Thus
encouraged, organized labor,- par¬
ticularly in the. large and highly
unionized industries, has launched
1941, the comment is made that
""the decrease in current produc¬
Tho result is that a number of in¬
industrial
production for civilian
which the Survey states is at
use,
the
level
lowest
since
middle
tion, however, doesnot accurately
measure the Precessions in indus¬
trial activity,
employment and in¬
Many plants
are
going
through what the Department of
Commerce terms0 the 'organiza¬
come.
»
tional
phase' of the transition,
which
a
considerable
^amount of activity is generated
that creates employment but does
mot find immediate: reflection; in
the output of finished products."
^
Continuing, the: Survey points
out that: Unemployment, accord¬
ingly, does not appear to have
reached the levels indicated by
during
Since
•earlier official forecasts.
a
•considerable part of the physical
process of reconversion has al¬
ready been completed,* there are
.grounds for the hope that tran¬
sitional unemployment will at no
the volume that was
time attain
ieared
a
few months ago. Whether
realized will depend
whether the remain¬
ing preparations for large-scale
peacetime production can be made
■quickly enough to absorb a large
proportion of the returning vetterans, who have been reentering
this hope is
priiharily
on
civilian life at the rate of more
than
a
million
a
month.
■
-
Reconversion has unquestion¬
ably > >been . stimulated
byv \ the
promptness with' which war* Con¬
trol.", have been lifted, contracts
terminated and settled, and plants
cleared
of
war
inventories
toward the relaxation Of controls
made
even
before
the
end
tof'the war, including the liberal¬
ization
of manpower
regulations,
"open-ending" of the
the
and
including
automobile
manufacture, one of the most cru¬
cial divisions of reconverting in¬
dustry, have been seriously im¬
pacted in their return to peace¬
time operation; and even
more
widespread " interference
is
in
prospect if the nation-wide steel
strike* pdciirs, as scheduled, ■ on
Jan. 14, | and if the threat of a
dustries,
<
strike in the electrical
equipment
industry is carried out.
.The
contains
situation
several
potential elements of danger., If
industry offers strong opposition
tb the wage demands, the conse¬
quence may be .a series of strikes
delaying reconversion for months.
If wage
increases are granted
Without corresponding; price in¬
creases, the result will be that
profit margins, already, restricted
by the Government's reconversion
pricing policy, will be further har¬
rowed, and may prove insufficient
in many cases to provide the nec¬
who have not benefited by thf
higher wage rates may be;unwill¬
ing or unable to* buy . freelyj and
there may ensue a "consumers'
strike" similar to that which took
ers
place# after
War
World
I
and
ufhich iWas !partly;raresponsible for
the crisis ^oL1920i21i f
■'
Production
Tangible. evidence of the.■{ex¬
;; Stabilization and
treme difficulty of
reconciling the
objective of price stabilization
with that of maximum production,
Which appeared-, continually dur¬
ing the war, continues to accum4
ujlate- A striking' illustration of
this conflict of aims
few days after the Japanese sur¬
render the great majority of the
oh December
was
revealed
17, when the Ford
Rlotor Company announced that
remaining controls were abolishedi ohly about 30,000 of the 80,000
with the outstanding exception of c&rs it had
expected to produce
the maximum price regulations, before Christmas would actually
continuance
the
which
of
had
Ibeen clearly forecast
by official
statements. Aside from price con¬
trol, the principal restrictions now
remaining are those applying to
international commodities still iri
short,
supply, such as tin,. lead,
natural
antimony,
rubber,
■expected to remain
and
materials
hard fibers. These
are
time; but it is believed
careful allocation, the
can
be^pfevemted from
to
serious handicap
rsion.
\
a
for some
that, with
shortages
becoming
reconvert
scare
presented by the wage-price
con¬
troversy and the genera! situation
regards
While the
mined
line"
to
on;;
relaxed
industrial relations.
Government is deter¬
continue
:
to
"hold
the
prices, : it. has not only
its
control
over
loan
agreement, according
Bank,of Montreal's year-end business summary released Dec.
cleared the way for discussions between the Canadian and
governments leading to thermovision of a large export credit
Dominion.
Exploratory >dlks have, already
,
been
held
will
between-the United
year,
■'
■;
,,
Kobbe, Gearhart Offers
States,
early date.. \
an
r,
Wilcox-Gay Debenlsires
Vj The Bank's .summary also says:
j Employment conditions in the
Dominion
are
review
uncertain
as
described
and
by
]
Kobbe, Gearhart & Co., Inc., on
Dec. 31 offered $300,000 20-year
the
5% convertible debentures of The
unsatis¬
of
armed
persons
Service
reg¬
outstanding - 15-year
tures
^
making
returns
decreases
number
of
the
beginning of October (the
been
With
a
compiled)
because of insuffi¬
cient supplies, of materials. Some
suppliers had canceled their con¬
tracts because price ceilings' on
their products • resulted in a loss
on
sale.
every
Others
were
be
350,000 shares ($1
stock
and^a
name
of Wilcox
manufactures
company
different
models
of
a
The
several
recording
recording
.V
'
•
-
,
*,
*
'N
-
- 'i
-
Vice-
a
Belmont, \yho
graduated
from
Harvard
University in
1.9 3 1,
was,
prior to
the
associated
Bon-
bright & Com¬
pany, Incorpo¬
rated,
enter¬
ing
the
buy¬
in
ment
and
1932,
becoming
Vice-Presi¬
a
Lt. Com. A. Belmont
Di¬
and
His Navy service
rector in 1939.
began in February 1942 with duty
in the ^Office
Operations
of Chief of Naval
Pacific
Air
on
and
Washington
at
later ^included
month earlier.
trade
name
in the
months
20
the staff of Commander
Force," pacific Fleet.
,
,
of "Recordio."
.f. .-"rf-'VA
,-V;
.V,v lrt,V-
\
REAL ESTATE
!•
1946
SECURITIES
Hotels—We look for another good
;
year
of hotel business: Tourist
business' is beginning in good volume. While demand for
rooms, is
great as before; guests are; remaining for, longer duration than
heretofore-A \? <
M\-., ? , v* *
» *
* *
not as
!
^ Office'
BuildingS—-We anticipate higher rents than
I Primary
current reht;-
■
than expiring leases call for.
look' for
continued
100%
for the current
pancy
We
year.
Housfs-rWith -rent¬
als }fixed by. law and rising oper¬
ating costs, we do not see much
has
benefit, to this "type of property
after
this
nounces
their
despite 100 % occupancy.
flush
earnings we believe will carry
thrpugh for .another year,
f Real: Estate" Bonds-^We believe
■;?
Paorrish
r
&
,-j
'v.
.i-'f
7th Ave. 4^i's M
^
.
r$-< -V;>'
.
New
We prefer: selected hotel
building securi¬
York
Stock
Member $ New York Stock
other
ties.
Exchange
Members New York Curb Exchange
'
40 EXCHANGE PL., N.Y.
Exchange and
bonds and office
:
V
SHASKAN & CO.
Co., 40 Wall Street,
New York City, members of the
V-
★
'
earn¬
4M's
Beacon Hotel, 4's
f ";
Parrish Admits Watson
will see > still higher prices
because of sinking fund opera¬
ings.'
-
★
1946
tions occasioned by large
^
Savoy Plaza 3-6'$,'56
organization
in the
years
Buildings-^Current
\
(Park Central Hotel)
that John Max Hamilton
rejoined
^serving three
Navy Air Corps.
year
Loft
1870
DALLAS, TEXAS—C. N. Burt
& Company, Kirby Building, an¬
Apartment
V;
165 Broadway,
.
Hamilton Rejoins Burt
occu¬
M
St. Geofger4's
J-,'
al&r Many* leases will expire,: this May 1st, and landlords will be
entitled to at least 15% ■ moreo
Dlfiby 4-4MO
'
Beff Teletype
NY f-953
George E. Watson to partnership.
Exchanges
have
admitted
un¬
able to fulfill their commitments
because
they
and
wages
could
were
not raise
therefore losing
MM
TITLE COMPANY
SPECIALISTS
their; employees to other indus¬
tries. The result
duction of cars
was
that the pro¬
J
Real Estate Securities
was
held in
BOUGHT
.'
The labof-management confer¬
that
CERTIFICATES
m
"limping in¬
stead of galloping along."
was
Since
''
' ''
•
SOLD
k
-
QUOTED
v ;'; :.::
"
1929
Washington
wage
sponsorship represented
to
an
Complete Statistical Information
effort
.
y-
'I
t
,
I
1'
f
L. J. GOLDWATER & CO
avert the most serious threat
wage-price is¬
sue—the threat of prolonged and
widespread strikes. The resolu¬
tions adopted by. the conferees;
cpntain little to encouraere the
(Continued on page 35)
arising
from
the
Seligman, Lubetkin & Co.
yf}'~
■
-
;
;
41
■
Incorporated
Members New,York Security Dealers Assn.
39 Broadway
■
Members New York Security Dealers Association
>
Broad Street, New York 4
New York 6, N. Y.
HAnover 2-2100
HAnover 2-8970
Offerings
C-<
:for
HELP WANTED
Commander
phonograph unit and a
radio-phonograph unit under the
compared
TRADING MARKETS IN
A
28
City,
deben¬ ing ^depart¬
will
Laboratories, Inc., in 1919.
period for which statistics
have
* 4%
balance
ganized under the
6.8% in. weekly wages, paid
latest
the
par) com$65a,000 out¬
standing regulation V-Loart.
; The original company was or¬
earners, 5% in total .hours worked
ahd
and
nion
of
6.2% in the
hourly-rated
wage
of
ed
fering, the outstanding capitaliza¬ dent
tion of the company will consist
to
the Dominion Bureau of Statistics
report
in¬
added to working capital. : ' :
1 In addition to the present of¬
'jThe increase in unemployment
is declared to be general
through¬
out Canada. The 6,150 manufac¬
firms
accrued
to be re¬
ceived Toy# the company, $60,000
Will be used to retire the presently
23.,..
turing
from
war
and
"jOf the total proceeds
Nov.
on
Inc.,
York
Lt.
duty,
with
100%
terest.
Employment Service between
May 1 and Nov. 30, there were
istered with the
that
active
priced, at
service
personnel. Although 760,122 place¬
ments were made by the National
173,800 unemployed
Co.,
Belmont USNR, recently
released
Wileox-Gay ^CorpA The deben¬
tures, maturing Dec. 31, 1965; are
factory, partly because of the rapid
demobilization
August
&
New
President. Mr.
':
•
Read
Street,
has been elect¬
Canada and Britain also will be¬
gin at
Dillon,
Nassau
announce
be considered. Trade confer¬
ences
at
22 has
British
new
• ■;
Of Dilion, Read & Go.
the
by the
Ottawa,
in
4he Bank states, and these will be renewed
early in the
When the general.trade situation■;": •
to
ip November under Government
More threatening is the outlook
as
be turned out,
ence
The Wage-Price Question
States-British
.V
Controlled Materials Plan. Within
a
Export Credit Says Bank of Montreal
A-i'f-The VUnited>
essary- incentive to reconversions
If price increases occur, consum¬
and
equipment. Considerable progress
was
a"campaign for higher wage rates.
August Belmont V.-P.
•
^
POSITIONS WANTED
Beacon Hotel 4s 1958 W.
Mayflower Hotel Corp. Stock
N, Y. Majestic 4s 1956 W. S.
Broadway Motors 4s 1948
-
Roosevelt Hotel 5s 1956
Gov. Clinton 2s 1952 W. S,
-
Roosevelt Hotel Common
Hotel Lexington Units
OTHER CLASSIFIED ADS
S.
Broadway. Barclay 2s 1956
,
Hotel Lexington Common
Hotel St. George 4s 1950
40 Wall St. 5s 1966 W. S.
Wanted:
l
;
•#•
Broadway New St. 4/46
Industrial Office Bidg. 6/47
Trinity Sldg. Corp. 3-5/49
;
T65 Broadway 4T£s 1958
870 7th Ave.
# -4V
Teletype NV 1-1203
4T4s 1957 W. S.
Wail & Beaver St. 4V2/51
Westinghouse Bidg. 4/48'
Amott, Baker & Co.
see inside back
J. S. Strauss & Co.
Incorporated
cover
150 Broadway
Tel.
BArclay 7-2360
New York 7, N. Y.
V
Teletype NY 1-588'
155 Montgomery St.,
San Francisco 4
Bell Teletype SP
61 & 62
12
THE COMMERCIAL &
*
FINANCIAL CHRONICLE
;;VA. De Pinna Company—Circu¬
lar—Herrick, Waddell &; Co., Inc.,
55 Liberty Street, New York
5,
Pressed Steel Car
Dealer-Broker
Preferred Stock Placed
Kuhn,
<
ciates
the
Loeb
Co.
&
Recommendations and Literature
asso¬
to send interested
series A (par $50) of Pressed Steel
Car Co. have been purchased by
the, underwriters.
Company of¬
85,955 shares of preferred
stock for subscription to common
stockholders at par ($50).
Rights
expired Dec. 21 and 77,357 shares
sha
for.
subscribed
were
res
The
8,598
sold in the over-the-
were
for
market
counter
the
account
of the several underwriters.
§|
New
1862
on
the
established in
company
which
5%
there
$100
arrears
are
preferred
interesting re¬
cent
earnings range per share
after taxes—ask for analysis M. C.
P.—Raymond & Co.,
148 State
Street, Boston 9, Mass. on
American Service Co.—Circular
Company—An¬
England
alysis of
—Adams &
Co., 231 South La Salle
Street, Chicago 4, 111.
par
stock of $67.50 and
Street, Boston, Mass., and 40 Wall
Street, New. York 5, N. Y.
Globe Steel Tubes
Bowser,
Inc.
Goodbody &
New York
—
special
Co.,
Whither Now?—Re¬
prints of the article from "Busi¬
Week"—B, S. Lichtenstein &
ness
C. L Schmidt & Co.
Established 1922
Co.. -99 Wall Street, New York 5,
N.Y,
•
.v.
'
,
'
Valuation and Appraisal of Rail¬
120 South La Salle Street
'
:
road
CHICAGO 3
>
Tel. Randolph 6960
;; Tele. CG 271/
Equipment
Stroud
Broad
CARTER H.C0RBREY&C0,
Member, National Association
Securities Dealers
; of
Certificates
—
available
request are
copies of Valuation and Appraisal
of City of Philadelphia Bonds and
a compilation of Pennsylvania Le¬
gal Bonds.
on
Pacific Coast
—
special study
a
:'
*
:
*
V
'■ -
dian
Securities
Pamphlet
—
Pacific
Cement Corp
A—Bulletin on recent de¬
Class
velopments—Lerner
Post
Office
CHICAGO 3
State 6502
V
LOS ANGELES 14
%
135 La Salle St
'
,
P
650 S. Spring SL
CO 99
Michigan 4181
.
LA 255
Grand
Bank Building,
Mich.
Coal—Anal¬
condition
H.
and
Koller
post-war
& Co.
N. Y.
Gisholt Machine—Memorandum
—Buckley Brothers, 1529 Walnut
&
Square,
Co.,
Boston
Also' available > is
dum
memoran¬
a
Gruen Watch Company.
on
10
9.
Hajoca Corp.—Circular
in¬
on
Also, available are circulars on
Oregon Portland Cement, River¬
Cement, and, Spokane Port¬
land Cement.
on
Consolidated
Chicago
Gas
Utilities
and
Rapids National
Grand Rapids 2,
Street,; Chicago 4. 111.,
Malleable
Circular—Seligman, f Lubetkin &
Co., 41 Broad Street, New York 4.
Iron ' Co.—
New York.
Also detailed circulars
on
Fash¬
ion Park, Shatterproof Glass, Wellman
company—Ward
&
Co.,
120
Broadway, New York 5, N. Y. Also
available are late memoranda
American
on:
Industries;
ney
Engineering
Co.;
Le
Roi
TACA
lative
Airways;
American
Lamsbn
&
Win¬
Sessions;
';
Company —Study
of
purchase
—
^irst
Colony
V
availabl||'are ^tudies; of
gating, American Insulator.
Circular
P.
York stock
New
For the transaction of
Co.
.,Y
*
%
-
v'
.
*
v
1
j
„vf
general investment and commission,
a
k)
231
CHICAGO 4
SO. LA SALLE ST.,
h * ''v?*
^
^
> Randolph 5686-t-CG 972
1 Wall St.
George A. Robinson
V
>
;
Member
Central Steel & Wire, Com.
January 2.
Globe Steel Tubes Co., Com.
*Woodall
New
York
Stock
...
1916
Shillinglaw. Bolger
10 So. La Salle St., Chicago 3
Tel. Franklin 8622
Indianapolis, Ind.
•
kVv
Teletype CG 405
Rockford, III.
Cleveland, Ohio
,
/
:
' MEMBERS
Members
Chicago
Stock
CHICAGO STOCK
CHICAGO BOARD
&
Go.
Chicago
Board
of
11
Trade
OF
•>; Wvf'-U
208
Write
;
Products,, Inc.—Detailed
SOUTH
.
New York 5, N. Y.
Also available is
dum
on
a
memoran¬
International Detrola Cor¬
poration.
Wellman Engineering. Co.—cir¬
cular—Simons, Linburn & Co., 25
Street, New York* 4; N. Y,
Broad
Chicago Personnels
CHICAGO, ILL,—Raymond C.
:
Wauchop has rejoined, the staff
Doyle, O'Connor & Co., Inc.,
135 South La Salle Street, after
serving >in the armed forces.
——
...
CHICAGO, ILL.—S. Albert Trihas become associated with
Fred W. Fairman & Co., 208 South
marco
La Salle Street.
In the past
was with
Hemphill,
Telephone
Direct Private
4.
UNDERWRITERS and DISTRIBUTORS
V
Donald Stern Heads
Depl. at Cohn & Torrey
Cohu!& Torreyj i Wall Street,
New
York City, members New
York, Stock Exchange^ announce
the
association
with
them
of
Donald M. Stern as manager of
the firm's: public utility'division.
.
Stern
previously
was
man¬
ager, of the. public utility depart¬
ment of Hettleman & Co.
;
Frederick Housman Dead
;
Frederick Housman^ eighty-one;
investment banker with offices
Midland
Bonds—Out-
Street, New York City,
suffering a
heart attack about ten
days ago.
died at his home after
He had been in Wall Street since
He was originally a mem¬
1900.
ber of A. A. Housman &
Co., but
number of years ago. became a
special partner in Merrill Lynch,
Pierce, Fenner & Beane. At one
a
time he held
a
seat
the New
on
York Stock Exchange.
White, Weld t Co. Will
Admit New Partners
1
.V";^V'k> I'C!:
1
Jr.
and
E.
Jansen Hunt
-
to
part¬
.
/
7
'
—We Maintain Active Markets In—
CHICAGO SO. SHORE & SO. BEND RR. Com.
INVESTMENT SECURITIES
DEEP ROCK OIL CORPJ Com.
0 ;
^
NORTHERN STATES POWER CO, 6 & 7 Pfds.
SALLE
ST.
Wire
to
CO
4068
New
120
SOUTH LA
SALLE
STREET, CHICAGO
3
5
H. M.
/'•'/
ILLINOIS
Randolph
Svwt.m
he
Noyes & Co.
M-3—
LA
11
U. S. Sugar-—Circular — J. F.
Reilly & Co.; 40 Exchange Place,
|
of Midland Utilities
CHICAGO
BpH
For
"i
vijf
Midland Realization
•
of
care
Corporation,
Avenue, New York 1,
f Northern Engineerirtg Works- nership on Jan. 10. Mr. Hammond
Circular—Amos Treat & Co., 40 Will make his headquarters at. the
firm's Boston office, 111 Devon¬
Wall Street, New York 5, N. Y.
shire Street ^ ;
■
t
!-
TRADE
-
Midland Utilities
'
Pacific
.V1' :"?>
EXCHANGE/
v
Exchange
study
Merit, in
Distillers
-
Fred.W.FairmanCo.
*
Mark
:
White, Weld & Co., 40 Wall
Public Service Street, New York City, members
CokVAnalysis—Ira; Haupfe^1&4. CdV, of the New York Stock
Exchange,
111 Broadway; NeW York 6, N. Y. will admit William
C. Hammond,
'y- ;k.;-.-Vr
LTV"
A
they have
England
y|New
SINCE 19081
'
and
; New
England, Lime CompanyDescriptive
circular—Dayton
Haigney & Co., 75 Federal Street,
Boston 10, • Mass.
?
y
;
Chicago Board of Trade
'
of articles
Co., Com.
Members Principal Stock Exchanges
.
Utilities
<—McLaughlin, Baird & Reuss,
1 Wall Street, New York 5, N. Y>
yaui H.Davis 6c Co.
t
T- •'
;
^ Hardy
& Hardy,
Broadway, New York 4,. N. Y.
an
loo
Available on Request.
Established
Midland
V Missouri
•
,
Industries, Inc., Pfd.
.*Prospectus
// [;
" k
.
Sport
circular
analysis of
Co., 208 South La Salle
Street, Chicago 4, 111.
Exchange
-
to
Fifth
N. Y.
Chicago 4,
Also available is an
Fairman &
Arthur C. Harrison
1946
South La Salle Street,
Illinois. .
Realization — detailed study—
write for circular M-3—Fred W.
Karl H. Schewe
■
'
at 70 Pine
CHICAGO 4, ILLINOIS
Burton-Dixie Corp., Com.
\* Wells-Gardner &
Inc.—
Standard Silica Corp,
Telephones State 1700 and State 7970
i
Co.,
&
1
'
SOUTH LA SALLE STREET
New York Office
*
Mallory
^Merchants Distilling Corp.—re¬
cent analysis—Faroll & Co., 208
.
231
350
Mr.
Exchange
business in securities and commodities with
offices at
Members Principal Stock Exchanges
Chicago Board of Trade
R.
analysis—Steiner, Rouse & Co., 25
Broad Street,' New York 4, N. Y.
Chicago Stock Exchange
Chicago Board of Trade
HICKS 6- PRICE
v;
write
Schenley
Members
liequegt
on
Is I
ANNOUNCING THE FORMATION OF
r&
|
stock as a sound specu¬
Corporation, 70 Pine Street, New
Also:
The Chicago Corp.
-
running in the Chronicle-
Dis¬
Walt
and Segal Lock & Hard?
pany;
common
Robinson
been
Productions; Foundation Com-
Alabama Mills, Inc.; Douglas Shoe;
ami Purolator Products.
Utilities Corp.
-
of
Pittsburgh Railways, York Corru¬
Consolidated Gas
\ '/i'' '?>
"
Schenley- Distillers Corporation
v] Kendall Company—Descriptive
possibilities for appreciation for
dow; Glass;
,v. C
Corp.--CirCulars—
Hicks & Price,' 231 South La Salle
Dayton
Thermatomic Carbon Co.; Red
Rock Bottlers; and a new analysis
of Panama Coca-Cola.
war
American Forging and Socket—
Circular—De Young, Larson &
Tornga,
of
ysis
County
side
The
Pont, Homsey Co., Shawmut Bank
Building, Boston 9,. Mass. / /
—Brochure
Franklin
teresting possibilities—Hoit, Hose
& Troster, 74 Trinity Place, New
York 6, N. Y.
,' Also available is a memorandum
Great
-
Farr ell - Birmingham
Co^—
Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Y.
Street, Philadelpha 2, Pa.
Street, New York 5, N. Y.
DISTRIBUTION
New York 6, N. Y:\fC Vn'VVVI
way,
y? Also for dealers only are anal¬
yses of National Radiator Co. and
(Jo.—Circular—Ben-
RR*
dix„ Luitweiler &- Co:, 52 Wall
Street, New Yorlc $, N: Y. f
MARKET
SECONDARY
!
Inc., 111 Broadway, New York 6
—
Wood, Gundy & Co., Inc.; 14 Wall
UNDERWRITERS
k
on
this
Year-endyValuations of Cana¬
For
report
a
Sheller Manufacturing Corp.
prospects—F.
Study of outlook and speculative
v
Middle West
available;
115 Broadway,
Chicago, Milwaukee, St. Paul &
Co., Inc., 123 South
Street, Philadelphia, Pa.
Wholesale Distributors
1
Trust
Railways & Light Securities Co.
—Descriptive/- memorandum
on
oldest leverage investment com¬
pany/in the/United States-^Dii:
City.r'/k; VVV^ Vk'V'^k
Also available is
& *
Also
f
study—
Consolidated
Railroads:
Kropp Forge
-
&
Republic Pictures.
"Also
interesting possibilities at present
prices—Estabrook & Co., ,15 State
Delta Electric
I V
parties the following literature:
V Nickel—Memorandum discussing
international Nickel which offers
Trading Markets
-^'Recent
Bank
C. E. Unterberg & Co., 61 Broad¬
Vk-V-V
Inc.
National
report — Mercier,
McDowell
&
Dolphyn, Buhl Building, Detroit
be.pleased/.
of Oxford Paper.
•A
Electromaster
Public
r
Co.—Analysis, for dealers only-^-
26, Mich.
It is understood that the firms mentioned, will
8,598 shares of
cumulative preferred stock
fered
^
N. Y.
Dec, 28 announced that
on
unsubscribed
4V2%
and
^Thursday, January 3,'.1946
*
York
Telephone State 5850
'
Byllesby and Company
Incorporated
135
Teletype CG 1070
So.
La
Salle
Telephone State 8711
Street, Chicago 3
Teletype CG 273
fi:V7
New York
Philadelphia
Pittsburgh
Minneapolis
Volume 163"
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
Attacks Purchasing Power
Metropolitan Invest. y
Company Is Formod 1;
Theory
„
First National Bank of Boston Says Its Chief
:
;
Peril Is Inflationh
Arising From Deficit Financing and That the! Doctrine Is Like a'
Mirage With the Final Outcome, Regimentation and. Serfdom.
1
Letter^
The year?end:.SNew.'^Englarid
.
of Boston devotes considerable
space
Power" ;i theory
prosperity a S: advocated i by cer¬
tain government officials and New
CHICAGO,, ILL,
NSTA Notes
the^ First National; Bahk
of
Company, Wholly owned by the
Metropolitan Trust Company,r to
to an attack on the so-called
act
"Purchasing
Deal
economists
during
Smith to
f
the; early part>of the
1930's, the creation of. purchasing
by
poner
the
Government
been ^advocated
Quit
the
Pres.
as
:
■
ILL. —Kenneth. PL.
Smith has announced his resigna¬
has
CHICAGO,
a panacea, for
tion as president of the Chicago
ills,"
the
letter ^Stock Exchange, effective April
states. "This theory has become 30.
Mr. Smith has held bis post
deeply implanted in the public as head of the Exchange for Seven
mind and has formed the basis of "years, and has been a member!of
our
nationalpolicy. During this the Exchange for seventeen years,
period it has found expression in Mr. Smith stated that he had made
many
forms;
buttthe .general rib plans for :the immediate future,
theme has remained unchanged."
but if he should be absent for aby
Continuing, its anaysis, the ar? length of time up to April 30, he
ticlo goes on to sayr, -"
would name James E. Day, Vice■
i
In the early days of the New
President, as chief executive offi¬
Deal, public expenditures were to cer of the Exchange. ^
be
used to
prime the business
pump, solve unemployment, and
balance the budget from the ris¬
ing tide of business activity. But
this proved to be an illusion. After
spending about 25 billion dollars
for :pump-primirig purposes id the | The Paragon Electric Company,
1:fiscal year,
>as
V."ipP.jfP
•
i
,
'p~-
\
.
:.i"P;, 11'
■'"! :"""} j-;P.p»A;
*-!Ti.\-1
chinson & Co
1
dent.
i
t
Paragon Slock Sold
By Lcewi & Company
1930
the
s
decade
ended
Two
with
Rivers^vJWisconsin,;
,
we^l-
a
"abbut; the same'numberv wijthout
known manufacturer of electrical
jobs as wheni the program began.
t
I new approach was Tnecessary.
In •/ consequence
a ? theory
was
formulated, which in effect was
that we need not worry about the
time switches and other electrical
?
debt since
owe
we
it
to
products, has sold 10,500 shares of
$10 par 5% convertible preferred
stock and 21,000 shares of com¬
Emerich
&
Ames,
Mellgren
other and that interest
payments
represent merely distribution of
money within the country. Hence,
sin to succeed to
to
The
the
with
A
was
of money to
this
bill
was
proposal
sam
prepare
retired from limited partner¬
vestment find of Rogers
135 South La
cor¬
We
are
pleased to
has been admitted to
in
Tt—
our
up.
Under
the President was
amount
•
that
CHICAGO,
in
the firm.
ILL.—Comstock
:
&
direct
623 South Hope
way,
the
terms
Curb
York
tpA'P
Wernleri
*'4?
&
209
SALLE
STREET
.
«¥
/
*
BOX
BOARD
*
;
ELECTRIC
CRUDE. OIL. J
\
'
;
-' n'
j
„
(
N.
j
Chicago Philadelphia San Francisco
:
Northern Paper
Paper Co.,: Com.
:
.
Mauonal
./V;*',
INCORPORATED
V
-
•
,s
f
r,;
All Wisconsin Issues 1
Froedtert Grair
Hamilton M
James Manut
Mfg. Co.'
: -r
HOLLEY, DAYTON & GERNON
•
MeiHosi'S
^
.
CG 262
C/itco^o atoctc Exchange
•
MILWAUKEE_(2), WIS.,
-
?
St., Chicago 3, 111.
Central 0780
f
?
225 EAST MASON* ST..
1: PHONES—Daly. S392 : Chicago: State 0933
Teletype: CG, 1200
Machine I
-AiiP:•
'• ■■■*"'■
Member—Chicago stock;t Exchange
I
,
1 iGisholt
PAPPAP'P. P4
Tool
105 So. La Salle
Chicago 3. Illinois /
Telephonet .Dearborn 6161
V '
J) *'
Macfadden Publications
(Standard Silica Co
Wisconsin Power and Light Co. V
135 sotttif la salle street
•
*
New York 6,
;^eUptione C0rtlandt:7<|060
i DOYLE, O'CONNOR & CO.
|X
Incorporated
n.
i
/r s 1r';.
Nekoosa-Edwarcls Paper Co. 'Pp
Koehnng Co.
La Plant Choate
•' \
Branches
—
Cons. Water Pwri and PaperCo,
—
i-;-/-;..•;>
/
„'
131 Cedar Street
••'
CHICAGO
Central
JEFFERSON
i
Its
Prepared—Conference Invited
Albert Frank 4 Guenther Law
-
$'• - V
CONTINUOUS INTEREST 1
.THE SECURITIES OF
GENERAL
j
Phone State 0101 j
partnership in the firm.
?
AMERICAN
All
Plans
Boston
BICKERING LUMBER
"
4
■'?'"ii.-H.y.:■*>{*.'PpiP-- c-XpPiA*.£■ &• '•• £
LA
r
A- PAA'A%
fit
of Chicago Stool I^xc/iango.
Exchange,
—
j
S.
:
A |
have admitted Vincent J. Rosso to
and buggy
^
A
New York City, members of
New
vl- 1
]
ADVERTISING
rM i Ai
William A. Fuller & Co.
J. A. Ludlow & Co., 120 Broad¬
words, debt and taxes are: to hP
on page 39)
;
In
department.
J. A. Ludlow Admits
considered
(Continued
on
request
A.iAA^AAAAp:: 'l:J i A---A
FINANCIAL
St., Los Angeles
Offices imft-0therP California Cities^
In 1942 he joined
sign is to be erased and
-
t
private wire to the
Stifel, Nicolaus & Co. as manager
jobs instead of money. In other
;
*Recent circular
.
Teletype CG 361
a^-
Doyle & Co. and later with Doyle,
budget expressed in terms ol
belonging to.the,horse
m!
PACIFIC COMPANY OF CALIFORNIA
Mr.- Sherwood wa&
of their trading
*'
i
Daniel F. Comstock
^;>Announcing th& imtaMation of
^
partnership
O'Connor & Co.
has
ij
i
Corp.
"Common
,
HnaUy Peaph^
Interstate Aircraft 11
& Engineering
Erling J. Hansen
*pA A'
,231 South La Salle Street
Chicago 4, Illinois
^mce I933i; therefore^ the pur¬
chasing power-Aheory has under^
old-fashioned1
r
-
Edward P.v Renter'.'
January 1, 1946
formerly associated with Hickey,
the
A:AfCommon?J; '
Chicago 4, Illinois
that Donald B. Sherwood
nounces
Common '
Mich. Steel Casting Co. j
ADAMS & CO.
to be guaranteed by the: Federal
Government.
L
'
complete cycle : and
.
————/, i,.;
has been admitted to
1
R. Hoe & Co., Inc.
'i
Co., 231 South La Salle Street, an¬
and
required
expenditures
to
provide jobs for all was "to be
'regarded .'as :a prospective de¬
ficiency in the National Budget"
of employment, and this
gap was
the dollar
Preferred, Class A and Common'
In Comstock & Go.
would be?necessary to "spend in
order to provide full
employment
Any gap between the expected
Tele. CG S73
til
Sherwood Is Partner
it
Street
^American Service Co^
231 South La Salle Street
11
employed, to¬
gether with expected private and
public expenditures for the year
Salie
partnership
COMSTOCK & CO.
ber of persons to be
'
Chicago 3, III.
Tel. STAte 4050
firm.
an
total
that
I.*'''APAAiPAA li
South; La Salle Street, members
of the New York Stock Exchange,
as of Jan.
10.
Mr."Moeller has
drawn
v
MR. DONALD B. SHERWOOD
;
gone, a
announce
nership in Straus & Blosser, 135
jobs. Accord¬
■''
v,}r,'
v
;v:
^
.the
■■■Zr-ft.M;';i t;,
hi?
& Tracy.
KITCHEN & CO.
and
and
President of the Chicago
was
CLEVELAND CLIFFS
From 1924 to 1937 he
ham & Co.
of Jan. 10. Alclo R. Bal¬
;
j
,
used
be
'■■■»————
:
CORP.
COMMON
was
Illinois
If ;
TRADING MARKETS
CLIFFS
the age of 58. He was a
1916, when; he became an exec¬
utive? and director of 1 John" Burn?
ship in the firm oh Dec; 31.,
been with the firm for some time;
annual production
he was an officer of Straus Secuemployment budget,*includ¬
•
'"«•
ing specific estimates of the num¬ rities^Cotmpany;' v I. '>*••'% v..'.,- 1
^^mmm
^
to
as
at
partner in A. E. Butler & Co. until
will
admit Newell E. Thomas to part¬
nership
Broad¬
Meilgren has become
_
ingly, the so-called full emoloyment
dead
CHICAGO, ILL. f-r Edwin ^ G;
Moeller will be admitted to part¬
scenery and shift pub¬
attention
from ? thinking : in
terns
Howard#Tracy Dies
Admit Edwin Moeller
to
necessary
charge the
lic
Exchange,
:
Howard Van Sinderen Tracy is
Street,
members of the
Stock
Straus & Blosser To
Shift of Scenery
it
York
•'
irivbrve a burden to the taxpayer.
&}$*$%*ait
mmi
Recently
New
field.
not
.
an
will
proceeds
f-ip] —!—■—
theory
tha^public-^ Expenditures did
Admit Thomas
New York City,
primarily for additional working
capital to keep pace with the
company's rapid grpwttf'in its
some quar¬
causing public concern,
and the heavy deduction from pay
envelopes for taxes failed some¬
square
to
Gammack & Co., 40 Wail
poration established in 1910.
was
how
Gammack
as
general partner in the firm.
a
Morton
recently incorporated in Wiscon¬
,
ters
that Eric G.
'
Admits
Partner
New York City, announces
way,
through Loewi & Co.,
Paragon Electric Company
it is not necessary to balance the
Federal monetary budget, i
'/
But the mounting Federal debt
despite reassurances in
Matz, Harriman Ripley &
Co.
Howard
Hierce,
Lynch,
W. J. Banigan &. Co., 50
Milwaukee.
an¬
one
stock
mon
Merrill
of
W. J. 8amgan
McHugh,
Treasurer—Charles
Vice Presi¬
formerly! in
charge of Government bond activ¬
ities ;
o
,
was
&
.
Secretary—John
Company.
Lees
Fenner & Beane, New York City.
Keenland
Darfler,
Mr.
:
•
Hut¬
'.
Vice-President—Glenn
./Company.
:
.
V•• V.
■
McMaster,
Morton,
which is locat¬
company,
Charles A. Lees,. J ft.,
1946-1947
.
,
i
President—Howard
,
new
Barpet;JL;.;lRpsset,VPresi4enL''?nd
■■
the following to hold office during the
>
economic
our
StRtes
ed at 1T South LaSalle Street, are
bond TRADERS' CLUB of CHICAGO
:
11
PtiP;"-J-s ''i iviPvP
iiv-H'iP :P iiiii^iP'P ii - ?v -Ai"P ■: ■; '• ::'i-1"
Pp The Bond Traders' Club of Chicago has elected
OfChicago Exchange
"Since
;
United
dealers .in
as
Government securities. Officers of
last fif?
,.:teen;years^;:/>rJ:V::;.fe/;':;i:\iCvV'-^
Announce¬
—
ment is made of the organization
of
the Metropolitan Investment
Teletype- Ml 488
i.
Offices In Wisconsin:
Eau Claire
j
.
Fond du Lac
«
-
;
La Crosse
THE COMMERCIAL & FINANCIAL CHRONICLE
14
i3
PHILADELPHIA
*Gisholt Machine
*Gruen Watch Company
];
j
;
:1
:
* Memos on Request
;
(
f
* /
r
>
BUCKLEY BROTHERS
Members New York, Philadelphia and
Los Angeles Stock Exchanges
f
1529
Philadelphia 2
Walnut Street,
New York.
} V,
Los Angeles
Pittsburgh, Pa.
. Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
Private Wire System between
i
Philadelphia, New York and Los Angeles
.
Transportation Co., 1st ref. 33/4s, 1970, marked another important step
in the financial rehabilitation of Philadelphia's traction system. Pro¬
ceeds were - used for the redemption of. higher-coupon underlying
issues and further simplification of the capital structure.
debt
in
Stocks
Philadelphia Transportatioii Co.
Pfd. & Common
<
v
H. A NASH & CO.
.
1121 Chestnut Street, Philadelphia 2
Phila, Phone
Locust
1177
Phone '
York
New
of the
hands
•Jl'.vV' < HAnover 3-2280 '
Teletype PH 257
>
of
physical holding company, has 'continued
equipment. Over the next; five payment of rentals on certain is¬
sues- -which,
it
years the company plans to ex¬
guarantees,i'4th£
pend $19,500,000 for the purchase Trustees of Pittsburgh Railways
of 300 streamlined streetcars, 320
have made no payments on ac¬
buses, 250 trackless trolleys and count of debt service or. on account
the remodeling of 381 street cars. of lease rentals with; the excep¬
Maintenance facilities, terminals, tion of service on the 'outstanding
repair shops have been modern¬ Car Trust Certificates. This has
ized
and improved. A two-way
resulted in an accumulation jof
radio communication system be¬
cash or equivalent in the hands of
tween operating headquarters and
the. Trustees which, at the year
supervisory personnel helps over¬ end, is estimated to be approxi¬
come delays resulting from, traf¬
mately $20,000,000.
fic congestions, fires, storms and
No matter
which
unavoidable tie-ups.
slice
.
'In the 12 months ended June
1945,
revenues
able for
g|
Paid
in
/
fixed charges resulted
a coverage
While
Iowa So. Utilities
Common
j
is
to
recession in
gross
be
expected as a
result of lessening of war indus¬
try activities,- net operating re¬
sults will probably remain satis¬
factory due to four
offsetting
Midland Utilities
•
GERSTLEY, SUNSTEIN & CO
and
Phila.
Stock
Members New York Curb Exch.
Exch.
(Assoc.)
Philadelphia 7, Pa.
t
fHl V 691
'
SEC has set' Jan. .15
Leslie
as
date
dent
Jan.
of
its
portfolio
U.G.I, proposes
change
shares
of
offer to
to
bach
for
securities.
unit
its
ities: 1
Works
12
shares
&~ Electric
be
in
charge of the
Bank's South¬
Division.'
ern
S- He
share American Wa¬
ter
effective
1, 1946.
will
outstanding capi¬
tal stock, up to and including
759,000 shares, the following se¬
em
a
;
Mr.Coleman
ex¬
iteii
of
comes
common,
to
York
New
' &
from the Sec¬
Southern- common,
10
shares
Hudson K Power coin-
ond
Niagara
Bank of Hous-
Commonwealth
you
1 share Niagara Hudson
Power 5% 2nd preferred and 1
share Public Service Corp. of
mon,
National
Texas.
ton,
attend¬
After
c a 1
schools he-
1,0
ing
New Jersey.;;*
graduated
Leslie
Colemaik'
A special meeting of the stock¬
holders of Lit Brothers, Philadel¬
stitute and Harvard Law School.
phia] department store, has been
He; then
from Rice
joined the - staff of the
of
called for Jan. 4 to vote upon the
San
proposed
Houston, Texas. In 1933 this com-
sale
of
the
property
land and buildings which it owns
and
uses
to
the
University
Pennsylvania for the
Company
Trust
Jacinto
pany became a National Bank;
When the war started he be¬
of
of publicy-held
owners
of
sum
came
$4,-
150,000. The plan provides that
Lit Brothers would continue to oc¬
cupy - and operate the properties
was
.
size, 3,000 cruiser type planes.
cess
Profits
Tax, (2) reduction in
maintenance costs and operating
expenses through replacement of
obsolete equipment with new and
According to Phillip C.' Staples,
President
of
Bell
TelephoiiefiCo.
of
^yHedS^widelykhovwt throughout
Tekas^ He^is4Aymemberr of the
Readihgv Company,' has ordered Houston :Club and, a Ynember and
15;00j0 z tons!? of ^ateel ^ rails ?fr<!»m directorxof .the^Houstoh Country
Club."
4
!
'.r
%
BethlehemTSteel Corp.'
i
Pennsylvania,
the " company
plans to spend- $i50,000,000fbh an;
expansion program. Anf early
i
modern facilities and the elimina-'
'■ '-y.-r; •.... ,-v
*■
jective is to. pro vide ;s^eyice)| fo? $
Apivectors of Germantqwri-.Txtist
tion of much overtime,
(3) de¬ 113,000 persons in
the^State\.wK<| Co.,'Philadelphia, have authorised
velopment'of a large building and are now on
waiting lisp.. Although' the, transfer of
;$375,00p,lronT;un-,
construction
programf throughout 70,000
applications j have* % been divided > profits " and.
contingency
the
Philadelphia area and
(4) filled in the last six^months,
ac^ b£serye;jtq;surplL^
substantial:; savings
in » fixed cording to Mr.
Staples, 57,000 acij ing latter to $1,400,000*.
4:.v
charges due to improvement of ditional
*'rV4! 5/•}-v•.<J'
:v•
vA.v 4 A'-''i''-hi 14'AA.
applications ^ were > re¬
5■^v^. !
the capital structure.
v V
ceived in the same
,
Industrial TrustCo.
period.-j^He M^vChariesvB
AReMing^^resiifent^oi
The new bond issue, selling at
premium above the issue price
to yield approximately 3.20%,
necks" as tel^hone instrun^ts|
ceiitral, office ^ switching | equip¬
reflects
COMMON
listed thb Ahree
a
(Philadelphia)
ment
and
tion s.
Of the
a high degree of public
confidence
in
the
company's
1420 Walnut Street, Philadelphia 2
Pennypacker 1787 N.T. Phone REctor 2-0037
Bell System Teletype PH 205 'v~ V
outside
cable! conhecr
delphia: office- of the investment
Co.;
firm, of J. Arthur Warner &
Chestnut ! Street,
142
thatvThomas
.
announces
F. !Harkins,;Theron
_
company's ,4:48. ceh^
ditional equipment becomes
li
IM ■ I
•
.
•
.
'i
"
11
"aViil-; j- ALLENTQWN,:
adelphia
~„
fi
Dept.
;
\
PA^aiil &
Co# Inc.; 1420. WOlnut Street, "anf
4 PHILADELPHIA;
PA.—The Phil¬
investment
.
()f Paul &,CoM Inc.
offices in
rUntil ad¬
Philadelphia
Transportation Co.'s clean-cut pic¬
ture, the muddled affairs of the
Pittsburgh system, second largest
.
II
In
with
Warners Adds iTbre^
PHILADELPHIA,^
Davjd
^r^terv;jr;^mahagei?^of (the4Phila-»
y!
Evans Joins Trading
Pittsburgh Railways Company
contract
•
J. Hickey and Jess M. Reed have
Leeds4; &-Northup;;Co.,i1has.been become associated with that office,
<!.'V*-fc-.v:^4u.r *•v'
ii
l'
elected!' director! of; Philadelphia'
'•mSSmtKttK/RtI—*1
'
" I""
>
Electric Co. y
Pehnsylyahia,jj25tf Ghas. A.1 Tajgfgaii Opens
jateoperating,;at;^c^aci^;andfea^
Branch: in Allentown
notr3neet new demands
tral
management.
LEWIS C. DICK CO.
principal^l^tle|
;
.
...
•.•»v
V *
as
Vice- Presi¬
.
Tel.
announced
Cole-
•
man
for a hearing on the
Gas! Improvement Co.
#
New Tork Phone ii?:& Bell System Tel.
WHlteheJl 4-SSW
the
Abbot
a Major in the Army and
placed in charge of civilian
\itiesK remain;; firmly convinced personnel of the Army Air Forces,
that, the impounded cash beCentral Flying, Command, Ran¬
under-a long-term lease, which dolph Field, Texas. * During the
longs to them in accordance
would be part of the contract of time he was in the Army the San
with their contractural rights.
All 'principles of law/appear! to^
Jacinto Natioiial
Bank emerged
uphold this viewpoint. At this
with the Second National Bank of
writing it seems possible that
I'lper Aircraft .Corp. antici
Houston.- In April of 1945 he was
outside
intervention4mayybp-i ■spates ! an- output of between > placed on the Army's inactive-list
erate to accelerate pa' solution! 46,900' and -10,000 small aircraft; and was elected a Vice-President
and settlement of thelmahy cbri-t ^during41946. The - company, has *' bf the" Second? Nationalj Bank in
orders in! hand i for 3,000 Cub
flicting claims.
'ry*7charge: of bil loans.;
factors: (1) Elimination of the Ex¬
Y.
of
F.
■
ratio of 1.75 times.
some
revenues
2i3 So. Broad St.,
meeting
.
Inland Gas
Members N.
It,
way
divisional and underlying secur-
increased to
from $56,384,922 in
preceding1 12
months.
A
slight rise in the balance avail-
k£.-\ /■.
a
Company,
President,
Goodhue,
tion
„
its
$56,771,305
50%
*
Manhattan
plan to make further distribu-
/ 1
!
a reduction in annual fixed inter¬
Operated un d e r Trusteeship
est requirements from $2,399,604 .since 1938,; physical properties of
the system have been modernized
to $1,685,447, or 30%.
and rehabilitated second to none
Hand in hand with capital im-;
Although
provements, the company has un¬ other in the country.
dertaken a continuing program of Philadelphia Company, the parent
the
61/as
The
the
United
overly discounted marketwise
time element.
Following
Board of Directors of the
Bank of
the election of
because of The uncertainties of the
public from $61,854,240 to $49,965,450, equivalent to 19%, involving
30,
1st
are
Bank of Manhattan
_
.
Bank & Insurance
3-6s 2039,
the
1945
L. Coleman Officer of
gations of $13,000,000 maturing in
1946 which it expects to meet
without refunding operations. >
.
funded
up
accelerated
-
taxes. The Pennsylvania has obli¬
Since 1940, the company, successor to the former Philadelphia
Rapid .Transit Co.,. has reduced^
modernization
Philadelphiafffl
month, of $7,000,000 Philadelphia
The issuance and sale, late last
of
>
amortization of. war:? emergency
facilities and adjustment of Fed¬
eral
income
and
excess
profits
Philadelphia Transportation Company
:;-i American Pulley
charge of $40,000,000 set
a
against " balance
Pennsylvania Brevities
T
Thursday, January 3,
of
r m'
Evans
Edward! H.
that
nnounce
has become associated with them
CharlesfA; Taggart4, & Compapy in the Trading Department.
announces the opening, of an of¬
Subject to year-end adjustments;
fice at Allentown; Pa7; in, the Dime
in the State, continue to fret the bet income of
; Return from Service
Pennsylvania Rail!patience of the
company,
the road is unofficially estimated Cat Bldg., 7.th - & ; Hamilton Streets.
Montgomery, Scott &, Co., 123
William
R.: Croasdale ; will
be
courts and the owners of publiclyfrom $44,000,000 to
$46,000,000 for
South- Broad.Street, Philadelphia,
manager 46f ? thb;iiewy office? and
held securities. Yet,
This will be
potentially, 1945.
equiyalerit^tb associated with'hihi wilFbe Frahk; announce the return from active
equally favorable factors are in
$3,404tQ4^^^5r;:pel: £ sh^re^dia* C.y Croasdale.'
V 4—
* -' service : of ^William Coxe Wright,
evidence
which, many specula-' pared'with $4.91" earned
;in^944i
Com., ;U! S/ N:. R., and R. Alextively-minded investors believe, Ihchfded
Sr \'t
|hTh0 estimate^ howev »r|
'
v' Dealer inquiries:Invited
;
Philadelphia <Co.
K
common
-
t../.
Botany Worsted Mills pfd. &
Empire Steel Corp, com,'
:
Vinco Corp.
.
John
'M
-
Publications
Available
r
PHILADELPHIA, •
Irving Shoe commdn
&
Warner Co,
!•
,
Byllesby & Company
PHILADELPHIA
RAILRCJAD
-
^
;
N. R.,
nt
Stock Exchange Bids:. Phila. %
Valuation and
■
t
-r
'
,*»
Q.r, r
Robert yC. 4Bodine!
';'-Y
f
jjtri*
& Co., Land -Title
^
fe"!'-1.'?
f's;'•?''
-'s
jGreorge' B.; Zendt; has,returned
lias|! returned
the
with
service
from
armed
•
again associated with
Eastman^' Dillon & Co., 225 South
15,th^Street,. Philadelphia.
;x/
forces and is
as
afgenemhpartneT of'the
.
i
Compilation of
J
r-r* v
•t
Penna. Pr. & Lt.
COMMON STOCK
;
a
>. (when-issued) '
g
"
/;'!v;
Copies
>
on
'f >'
;
t
\ ' /' "
f
PHILADELPHIA! TRANSPORTATION PREFERRED. STOCK
;•/] PHILADELPHIA ELECTRIC: COMPANY- CQMMON\STOCK
j
PHILADELPHIA' ELECTRIC
.COMPANY,$LPREFERENCE STOCK
1.
^.TEXAS, PUBLIC SERVICE COMMON.W.
/
PENNSYLVANIA'GAS
e
"
'
v-:' *
*
v
i
'
t
v.
4 *V £
. vi
^!
,
-,
.u
.
"
COMPANYy COMMON
,
-
,
1'T
^^
SO.
BROAD
.Incorporated '...''';rv
STREET
PHILADELPHIA, PENNA.
St., Philadelphia 2
San Francisco
"V/V
1
STROUD & COMPANY
123
Chicago
Request+
PHILADELPHIA' TRANSPORTATION 3-68 X039;.
,
4,
,..t
WARREN/COMPANY COMMON
Pennypacker 0100
Boston
.vv..„..
?
4
Incorporated
-
-
:
•
New York
.
I.-,
E. H. Rollins & Sons
1528 Walnut
r
i
Bought—Sold—Quoted
?■
...
j
\ - J:.
■Ji-'.ir.
PENNSYLVANIA LEGAL BONDS
i
•
.
Allentown
Pittsburgh
..
!
;;
.
**
s"'
120 BROADWAY
NEW YORK, N. Y.
.
....
Reading •: Scranton
:
.v,
•,.
.,
,,
l '-Vi.
^
Williamsport
y£RAMBb#KEENy Close|&?Kerner;|Inc;
ft.
'
"
»
y
;
S."and<willi resume bis association
with Kennedy
^active;se^ice^ith
ASmy > and Presumed ? his (duties
CITY OF PHIIADEIJHrA BONDS
"
Lt., Goh! John ;F. Fant. has)> been
releasedvfromr sefvice: in-the A; U:
Bubding,!Philadelphia.'*
from
lsmm
'
1 f
*"■
•
Packard/Buildingj ahhounces that
f
Appraisal
Tele. PH 73
and the.resumption,of their
'
^o^sen^lCroiite^
EQUIPMENT CERTIFICATES 1
anden^^MbhtgomOT*®ti;CQ^* U.S.
4utieS:as general partners;
gxchajnge>fi|^'^bf^p^
■mi
OFFICE
Phone Rittenhouse 3717
,
PA.; — The
and -Philadelphia*; Stobk
New/York
■V#:
jjS
common
y^li^ation and Appraisal
H. M.
»
^■pefHa^ri|l^
Central Steel & Wire
r;
,
Robt Bodine Resumes
•
Investment - Securities
1518(_lA>ciist:Str^ct;;J?hiladelpKlayx:/^^
Yqrfc and; Bcdtirru)re
^\:
:
4
■T'i-'
Volume
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
<•
13'."
U
Workers Pay Under New Genfract
While wartime restrictions
1945
served
dealers
■
Increase of 25 fo 40% in Hotel
Pennsylvania Municipals
in
on new municipal financing again in
greatly limits the amount* of-business available to
Pennsylvania tax-exempts, the trade confidently 'and
to
.Contract Retroact^ to Mime 11 and Runs
WESTERN PENNSYLVANIA
May 1948
to
hopefujly looks forward; to a -vastly greater- measure: 'of act|vjtyv dur¬ ; f "v Wages of -25,000 workers in unionized hotels
of New, York will
ing'the 'peacetime-year bfl946.-l^is< nfuch is clearly; evident;Vlocal
bp% raised from 25 ^ to 40 % under a new contract, carrying no'-strike
governments,tonthe; average,;
and no
V TRADING
,
•
haye^rare^iii 'sounder
position to undertakeathe financ-^:'v ing1 of; such ? municipal Xplant * im^
provements
and
projects
vihay ^e-necesSary.'"V, w
' :
new;
situation is
by no
peculiar tp the Keystone
$tate,?'the fact is,that the; Federal
condition of public bodies, 1 par> tieularly insofar as indebtedness
v
:ment and at little,
ings V of
:
or-i
Tlune-1 r and will run; to'
1943. / The wage increases range
froiri $3 to $11 a
week, and, as the
hptel employers' present pay roll
has been running around
$30,000,000 a year, it is estimated that the
slight cosjt"f
realty4 throughout
State; The^facts
^
time in the past decade. This is
to
May 31,
strikingly
in
the 'case
4 presented, rby
-H.
the
ard
F.
<
Aid erf er;
^ D i rector ^Vof th e Penh-largely, the product of1 the war ;
sylvania f. Bureau ' ofV Municipal
cyears .which,; as a result; of (the«
':£& enforced embargo on new debt '* Affai rs/; in the latest^issub pf' tlie
./> creation, ^resulted! inV reducing f departhieht's'bullef in. 4:'k f
J net
;iiidebtedne»s^isndevelsi that i;
% : a would not
^ordinarily
obtain. ^A;
nbw. rises -will cost the
ment, it
According .to {this . source, ,50M,
Counties responding to a survey 4
>
a ;*
comparable f
strengthening
credit positions.
.in
•
<■
kre
,'
exempt from local taxation.
a
was
•
announced, include
required- to
merit because of
from;' 171
counties,^ including* such!
other
to
available
PG 496
.
work- -
on.
•
;
or.national
of
Harold l C.
bjirgh iwilt
act as
floor broker.
Transfer
:
Sears
Benjamin Franklin Hotel 5s 1960
to
De
origin, and time-and-a
half for overtime
Bellevue Stratford 5% 1935
an
7
.
/»*
Individual
s
>
j 7 Phila. Transportation Pfd.
;
Phila.
of- the Exchange mem¬
from
Forest
Van
D. Barnes
_
partnership
Transportation 3-6s 2C39
Phila.
Suburban
Pfd.
&
Water Co.
Com.
:
y
Samuel K. Phillips & Oo.
Member9 Philadelphia Stock Exchange_
Slycfc retired
in Fahnestock
Packard Bldg., Philadelphia 2
materially accelerate
daily basis
highly Industrial^areas ;asiAlle^
.:the;-prqigressj already?in^^idence
ipstj^d^Of/^ present weekiyyav- &i Co. on Dec. 31
./toward;. solidifying the merits; of ^^heny, t- Beaver, -- Dauphin, :,Le:'
John
Granbery
retired from
erage; system, under which etri;hanon,I^wrence,Northamptoh,'
■r; th^Iseidufities ;&s;c(e$ii&ble;imrest£
ployees received tirtie off for over- partnership in .Granbery, Marache
.Washing|onandWestmoreU
&• Lord on Dec* 31.
;
r
mpnts^IriAOtheTlcases^it" made'
IfEyen ;on ;tlfe!d)asis.pfI the r$187^
y possiMe:4he;rehabilKat^
The new agreement
jHafry R; Eageman .retired from
supersedes
Q0p,0d0iTigure:;;'h:bweyer^tTs esti£ ithe :c jirrerrt;^^contract;^^ Which Would partnership: in Pershing ;^? Co. on
;4stTuctb^^hi<ch^^
had bden
Dec. 31;. 1
considerably impaired. piated that; oh a^basi^of "air
have expired May
31, 1946. Nego*
:-f g!AccotjdingIy^ it^sfnot ^without age conservative; millagdJ^Tate j6f .tiations. for the new
jRObert Ayres retired from part¬
agreement
25 mills, .the : loss ;in; revenues rtto
nership in JShieldS & Co. on De¬
4 good reason that both potential
It Will
the counties and units of gbvexn- Were b'egunrlast. March*
cember 31,
affect 140, hotels of the city which
borrowers; and ;Under5witers look ment
therein,'; amount ;to4S5,OOP,7
]Theodore G.. Sheaffer withdrew
j f orura rddp-the; events^pf; ^e}domi
have/; had /Contractual; relations
000 annually.^ Foron. a
'
Pittsburgh Hotels 5s 1967
/
Joseps A. Esposito will be considered by the Exchange op: Jan.
10. Mr., Esposito ;will continue as
a partner, of. Paul
S/ Zuckerman
&; Co. V
;
: r ; '
S:
these
creed,- color
race,
:
following
10. It is understood that Mr. Lans-
.
mediately
the
•
/'
:
Transfer of the Exchange mem¬
;
.
announced :
bership
This ;> was only;
part ^ Of J the; (lays;establishment-: of a joint
hptei;employment, agency; a ban
grand total fori-the fState; hbw^.
J ever;.; as*': no; figures were"l iin- ; vag^hist/distxjpamai^
For thegreatma jorityof debt¬
course/ the circumstances
ors, of
served
was
Teletype
weekly firm changes:
p^y,^ br^dbuble-pay/Tf7 employees bership of Courtlandt
to
^valuation of $187,000,00(1,
:
Bldg.—Pittsburgh 19, Pa.
Court 2380
jThe New York Stock Exchange
h&s
\;^cortcomitant ^effect^ of^course?* |d I s c l p.s e d. that; governmentr4 accprding ,td - length ;of service;
four'legal holidays off a year with
owned property in
.'-''.' '"has bwn^;substantiaj^^ improve
^1945 - had a 1
mentinthe investment qualities
of ^outstanding, obligations and' ;
Union Tr.
Telephone
Rpber.t .R^Lansburgh will be con¬
nqini mum of $7,500,000 annually.
] Other; .provisions of the agree¬ sidered by the Exchange on Jan.
■,]
,
industry
-.Members Pittsburgh Stock Exchange
Weekly JFirm Changes
.
by virture of its substantial hold¬
C. S. McKEE & COMPANY
Neiy: York Stock Exchange
I'] The ^contract; is/ retroactive
of -theJ: services
I
is concerned, currently is better,
than; has, been the case at any
>
.
government continues to enjoy all
of flocal l^gpyern-;
•./^A§:a matter ,of fact, it is more
Othan ; likely that*the
"financial;
'£
Whilev the
means
as
MARKETS
RETAIL DISTRIBUTION
lock-out clauses, signed on Dec. 19 by the Hotel
Association
oLNew York City and the New York-Hotel-Trades
Council at the
office of Edward P;;Mulrooney,
impartial chairman of. the hotel in¬
dustry,\41yEast 57th Street.
The New York -Herald Tribune" of
DeCi> 20,xin reporting this added
—
■■
■:—Ji f ■ ■ ■—
"
'
Teletype
vy.
-
PH 375
N. Y. Phone
REctor 2-0037
•,
.
'!
j Southern Adyance
,
^ I
V
Bag & Paper Co.
Common.-Stock
.
ing
with
year
utmost
the
thetSfaie"asfa
confi¬
over
the
4 likely to be. %
estimated
war
is
years
^
4.
".tivity than ;has : been
$7,000,000
4
local
(post-offices,
dealers
is
presently ^focused on- the; forth¬
coming: sale of $3,000,000 Allen-
v ;.
eight
months
of
-1945
having
on
trustee, under
deed
a
4 of: npt-more than
and ^only
4^^a^^>P^rP?issiblh;^Tlie Bonds
as a
JohnB. Joyce Co. Is
Formedin Columbus
.
are>
being;
t authorization
;granted% by
4 at 4;the^^d^lectioh
voters
Jah^the
4fprqc%i^Ml^
-iiafyT*
'
:M Interest ;o£;; the1 "late" Ralph/ S.
Itiehards in Kay,- Richards
Co.
ceased, on pec. 3J..;
-
retary/Mr/Joyce
Of Urban Alexander Co.
;
on
Dec. 31.
Bush of Paducah has beeii elected
■;
v'-4- i
years,
a
.fact
that
|
lends added
market interest to the
projected
41 vestor- audience ^and
■
in-
the ^pros- >
Pect is that competition for: the
>; new
issue,,
Pennsylvania
v.r,y
.
.
.
dealers
among
..
and
WfH be both broad
in
-elsewhere
?
and intense. ^
j.
::
We take
4
sinoe 1933.
.'
:/.*■
--7
officeVvin -Pdducah. early 4n 1946
with -Mr;- Bush as Manager/ - :
«
j.
•> •
i
i. "•
j
H*N1O|
k*-
I
Vy:
y
-
Common
' ;
Established 1895
^€0;
Members
Stock
| f- N.
j :*
Philadelphia Stock Exchange
Exchange1 Bldg., Phila« 2, Pa.
Y. Telephone HAnover 2-4552
BeR System Teletype PH 220
us
in
/
attd
Brokerage Services'
out
Trading- Department.
'
,
PAtit &> Co.. iNe.
,
Members
New York Stock
Exchange
Philadelphia Stock Exchange
j V-
in:*v
142fr WALNUT
,123 S. Broad Sc., Philadelphia 9
STREET, PHILADELPHIA 2. PA;
NEW YORK
!
BOSTON
McCarley. will represent McCarley
and Company pf . Asheville from
PhiladelphiaTelephone Kingsley331Y
New York Telephone Hanover 2-22SO
[offices;attll5^7C?:escent:Ayenue.^£3
...
rfrrwffiMMunicipal Bonds
CHESTNUT STREET
:
Teletype
PH 70
;
,;
Complete Investment
1
.
.
ti GREENVILLE, S. C.—Harold C.
A;Webster Dougherty
Trading Markets in
.
Investment Securities.
i To Represent McCarley ^
Utw-ib'j?
'■H-
■.
.
F.l;
1. /
&
1
'
-
c»:
"
'";S:
v
:
-
'
^i New York
.,-;B0wlinff Green 9-8184
and (few jersey
Municipal Bonds
The
A,,-.. 1,
15th ind< CHESTNUT STREETS
f':
Pennsylvania
Pennsylvania Company offers Brokers
and Security,;
of a department maintained especially
for handling clearance: ofi
security transactions. Our experiehce is broad. Our service is fast. Our
fees are moderate,
;
-;>r\
PHILADELPHIA 2
FACILITIES
\
D^ers the facilities
Teletype PH 222
Co.
-
f
;
'
Dolphin & Co.
Fidelity Philadelphia Trust Building
Pennsylvania
PHILADELPHIA 9
Telephones:
i Philadelphia—Pennypacker 4648
f
New York—-HAnover 2-9369
i
Bell System Teletype—PH 299
.
PKILA0ELPHI4 1
.j Member FederaL Reserve System
i Federal Deposit Insurance
Corporation
Company
FOR INSURANCES
ON
LIVES ANO GRANTING
ANNUITIES Founded 1112
£
*v> J
Rakestraw, Betz & Co.
w:mm
.
new jersey
•
*v:.;
-
in-
Edward H. Evans
m
h
7; It is /plannedto' open, a; branch
pennsylvania
Philadelphia
«
.
.n
'
d
MUNICIPAL BONDS
Ri tte nhouse.2580
in;:: the
f-
i
i.0
pleasure in announcing that
CLEARANCE
;1421
partne^
has become associated with
t 'i
*; v:
■
*
;
t/w;;
award^ pie district's bonds have ]
4 always commanded a-wide
general
as. aJ
:k*«'
,,,
-•
been. in <rcharge- of :'the< Western
communities, the
A1 lento vn; School ^District;
has £ Kentucky District for the • firm
'number of
thevfirna;
*
....
7-1202,
:
H"'-
s
Pennsylvania
a
to
/'Chronicle", oLDeCi:2Q.v
,tV;v-.."!
.
.
?
•
.•,
tenanf!H.S.N.R.V lias been admitted
a^/previpusiy//reported
^Swjeei
■
capital^market in
•fe. Welsh
John K; Weeks, formerly TieW
,
COrtlandt
LOyiSVlLLE^lKY.—FranklM;
.
4 not -.appcared Jn.; the;; long-term:.
and
i^ere^foi^er^office
Vice-Fi^esideiit of\ Ih^toJ;iAlex-^
&
Co., I^uisville Trust'
.tib^^h^iihp^veiih^tsfribrekisU
Building^^^it Tiia^beeU;ahi^uhc^
; ing schobl
facilities,
r
^
T
: i
-is^ r i
by^^^Uxbaud^A4€xarider;>PresM^
.j;:--.,: j^jpike^; a.;,^
great^maiiy-tf other ^ ofithb7;Co^pqny7 t;Mr% rBu^7lwS
>;
8200
r '
PH 30
Private .Phone to N. Y. C. ;
:
ceased
Philadelphia 3
| ■ Pennypacker
-
Interest 7of the late Charles. iV
Haley in Thomson & McKinnon
President; and C. R; Joyce, Sec¬
ander
i
•boenning & co.
limited partner, effective Jan-
.
?
Frank M.Bush V,P.
f.
1606T W|iIiiut St.,
;
v
1943Ttg51974'inclu^ve;-B
rebuired to.'jiamev an. interest;rate
•to
f
of
.
succeeded
Corp.
Common Stock' -'
Jbybe?^jCompany is being formed
^amounted* to'$94,779,598>rari^ia-^ ^tcj M^ddSih^GoVerhiheht;; rhunici^t^&offthejsey^atfs
crease £ of^ $2,104,51^ vover
| re- J palj/
rhicipal deals'scheduled40 develop
ci^prater: and public; ^utility Banks Returns; tp Walt St.
ceipts v during ; the : comparable :
im the ^opehing 'month-of the hew
bonds; offices Will rbb located" In
Morton M. Bapks has returned
period in ,1944. : Current a real 7
:';.year.'.V 4
the Huntington Bank Building.
frbm Government service and. re¬
^estateS ta^s-cadvanCed ;$328,426j(.The district ;issue, bids jbp over last year's
sumed his active partnership in
/ Officers; of: the hew firm are:
intake, and wage
% which^l^ be^ bpene^^ii^Jah;; 9^
ihfcn 7 BV VJoyce^ President: and Luke, Banks & Weeks, 61 Wall
will f beidated
Street,' New: York City,; members
,^1946 tarid
& mature$ Serially5#$
TfCasurer;^Berbfertf/Welshv: ;Vice-»- of the New York Stock Exchange*
^Feb^t^f^bih
'
Grinnell
Dec. 31.
M.
trust dated May 21, 1945, retired
Piec; 731, 1945; Thomas W*/Phelps
Mr*' Grant as- trustee
under the: above mentioned, trust
asso¬
^COLliMBUSV/I
fijst
as
-
'
|:4 Philadelphia; it .niia
continues; td"
reportjifjxeellqitj
frevenue returns from tax^paying,"
4 townSchoolDistrictbonds.Thisis
Cor-
organization.
^
sources, total income fn the
6.
President of
Council, signed for the union
the
iWheadon
Grant, limited
partner ih-Francte I. du Ponb &
signed for the hotel
Cosgrove, President of the
etc.) r'at< $137,000,tax, doss-, on ^ which-;is
r.
:
ciation, .Jay;- Rubin,
;
000, in the
placed at $4,000,000.
was
from yarnalL& Co.
The
association yesterday by Fred
to
$tion;in4945;pfFedei^^holdings
^available;
/fJn^numbervoTiyears^^^rr^^"^
of
from
J ; The. City? arid ^Cobntyt of^PhilaV
delphia reported an assessed valil-
tosaythat the-.output will be ;
tvery much .larger, thus afford- ;
■;-5: ing.dealers a greater area;of acy|
Attention
at
$10,000,000.
v
;
document
■
say
.volume
,
with"the; Council since 1939.
Naturally,-it is not possible ^jyhole the loss in income on taxexempt :j government property is
what tl^ improvemeht in
dence.
! '
•
r
located
for
the
Railroad Securities
Paul
St.
;
Income
"B": 4l/2$,
securities
new
2044
being delivered on Dec. 17 and Stock Exchange clear¬
of the St. Paul; is
probably the
best irt ifs history* it would.seem
i reasonable expectation that any
not the total extent to
which fixed e-4additional AVi points, representing 1945 interest, will be, distrib¬
cation points to working "capital uted which again, under Treasury
of the new company immediately
rulings, will be considered a. re¬
prior to delivery of the new se¬ turn of capital... Since the pay¬
curities,' totaling .some $110 mil¬ ment due on April 1st will doubt¬
lion, taking into account of course less -be considered;a current :lia£
credits arising' from acceleration bility, working
capital will be
of ; amortization' ^ of
emergency reduced by $17; million through,
distribution of interest on the two
facilities
as
authorized
by the
income- bond issues, as well; as
contingent charges are likely
to be reduced, since every indi¬
points
were
the Income A and B bonds, repre¬
senting 1944 interest.
This pay¬
Treasury rul¬
ings will- be considered a return
of capital.
On April 1st next an
ment under current
interest
on
on
holders must be used to retire/the
B.;
contrasted
with
substantial
to
equally
$7 dividend were disbursed by the
new Board of
Directors, some $7
substantial amount paid last June
to both the senior - bondholders
million" from
the
BIRMINGHAM
alone
source
lent bond in their
consideration
the fact that
stock will be owned
pri¬
new
this
would be used for this purpose,
f
The Income B 4%s are an excel¬
Mid thef Gold" 5s,. 1975, it would
mpeat that ^directors might itake
?nto
are
trated; ih the Income B &/zs: i If a
senior
an
Since the Series A bonds
virtually selling at their call price
(101 plus 4% points accruals) pur¬
chases* will ' doubtless i be
common
,
payments made
bondbolders in 1942 and
and
stock¬
Income; bonds, either Series A br
dividends for both
and. there is the
possibUity: that.a. substantial divi¬
1945
•3dsh
LOS ANGFXF.S
common
1944
As
CHICAGO
is distributed to
as
the preferred stock-
stock.
own right, well
satisfactory net ton
supported by
miles£>efdollar;
of
ported by an overall coverage of
marily: by the. old ^ adjustment
bondholders, iwho) did hot receive
over
three and one-half-: times
disbursement during the reduring the war period andaccordOrganization. period.
Tliis,
to¬
gether with earning power of over Trig - to pur estimate, close to three
times for. the post-war period. At
$4Q per; share on the
;f
any
Orders Solicited
«it
>
junior equity
Listed and Unlisted
during the
liberal
Securities
as
$7
war
on
$
were
and
a
the. common and-if
million of working
declared
$7 dividend
some
capital
$25
wOs al¬
levels,
excluding '-^Vz
;
points.accruals which. Will bb naid
riext April 1st, a yield o.f 5.02% is
-dividends possibly as much
sharec
$10.dividend
-i-.tlf *a
current
a
per
"irj :the preferred
with market* in thest cities
suggests
years,
Bond Activity but Even
j
so
Favorable Utility: Situation, Despite
Ownership. Foresees Contraction in
the Demand Gives; Promise of Exceed¬
ing the Supply of New Securities.
Holds Continuation of Low In-
terest
t
Reasonably Certain and Sustained High Prices:lor Both
j Primary and Secondary Investments. )
i
providing incentive for effort,
;
ri:yery^liberalreturn:iqr.a:bond
of this caliber.
In
addition to the
liberal 'yield
affordedthere are
possibilities, of appreciation inci¬
dental
to
company: purchases.: 5;:
depression and the necessities of
ly,
less; government,' both from
the; standpoint: of intrusions' and
:
costs.".
'FUminate
I
tions," 1 the Survey: states; 'twas to
overload the Federal Government
with debt, commitments and- obli¬
gations
to make
evident
Assure
-MEMBERS
.
v.w
Stocfc Exchange >and
f4 (Continued on page
37) "
other
ther additions to the current
over¬
Chicago Milwaukee
In
loads.
contrast, individuals,
corporatipns .and. local; govern¬
ments have, meanwhile tvery gen¬
St. Paul & Pacific
erally reduced their direct obliga¬
i
otherwise /•; improved
their situations so that, except as
the former: are;, of course,
finally
responsible: fpri^FedemlvsComriritr
mentsp all are better prepared to
tions f; and
face;the
R. R. Co.
J.v:
Preferred-Stbck;
future;nnd) to.:fesuriie
recent years.t The forced
ence)
on
the- Federal
Circular
f
V
v
.
231
" n)' I |':•
So.
.
LaSaJIe
St..
\
)\ ■ J ^
J.' 4,
Chicago 4.
mz-fe:
*:
III.
Specialists in1
PFLUGFELDER, BAMPTON & RUST
RAILROAD
Members Near York Stock
61
SECURITIES
Salected
Situations
all
at
i
Government,
in other-wbrdsl arid :the coiripul-
m
sion to
exchange hard-won rights
public bounty no longer exist
and* opportunity = awaits for re-
for
assertion
of
individual
initiative
Bendix,
-....
.
Bell
^
Teletype—NY 1-310
-
General Public Utilities
Corporation
'mini
<
>;£>
*
*r
New~~York 4, N. Y.
BOwling Green 9-6400
Teletype-NY, 1-1Q63-'
<
"
f
'
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'1
v
the
a'-
YORK
NEW
'
■*>/
"
YW-V"
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5 2
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above.
"when
^^
x
assume
■'
issued?
"J
^
;
7 3 O
i1
a
y
YORK, - N. Y.
i ;
,
■t-
), -1,
^
ONE WALL STREET
NEW YORK 5
contracts.
r
TEL.
■
SUTRO BROS. & CO.
HANOVER 2-1355
TELETYPE NY
Philadelphia Telephone
—-
1-2155
Lombard 9008
Members New York Stock Exchange
Beech Creek
'
i
#
120 BROADWAY, NEW YORK
5, N. Y.
;i:'Z^Tv^,l,€ieph^e.HE<rior^2^7340.^-^."
-
1
* T, TT.'l'
Railroad Bonds
Railroad
^
•
'
*
'
•
^
'
'-Vf>
•
■
v
v.
r-
,
:«r
?r"
Railroad Stocks
BATES MANUFACTURING CO.
Bought——Sold—Quoted
M'y[
industrial Stocks
UNITED PUBLIC
SERVICE; Com.
UNITED PUBLIC
UTILITIES, Com.
O'CONNELL & JANARELI
Adams &Peck
63
Wall
Street, New York 5
BOwling Green 9-8120
Tele. NY
BostonPhiladelphia;",
1-724
Hartford
>
1. h.
rothcihild
120 Broadway,
6c cb.
Member o/ National Association
:Jyv
52 >rall street
of Securities Dealers, Inc.
HAnover 2-9072
,
1
n.
y. c.
5
Tele. NY 1-1293
Telephone
REctor 2-7640
New York 5, N. Y.
Teletype
NY
/
|
•
/
*-'
,-
STH AVE. :
BOND BROKERAGE SERVICE
^
"*•
\:t
%^CHANGB3"
^
-
■y
losses
.
CURB CXCHANQC
WALL BT.
NEW
5/ /'/
«TOCK;EXCHANOJE
VARIOUS' COMMODITY
Railway Company
We will discount prdfits and
in
NEW
v
)
i
■
r
Specializing in Railroad Securities
St. Louis-San Francisco
>
4■
f
Members New York \Stock Exchange
Seaboard Air Line R. R. Co.
INCORPORATED
! Telephone
♦
Mclaughlin, baird & reuss
!A. :-t;w
23 Broad Street
Luitweiler & ca.:
NewYork'S
',1
4-493X
Times
GUARANTEED RAILROAD STOCKS-BONDS
.
Exchange
Broadway
Jelep/ione—DIgby
Re quoit
on
depend¬
private capitalism arid; a dynamic
competitive econopayr.wilj. riot ;bp
easy. Certainly: the goal Will'not
be achieved ^ by> profligate public
or private
spending, by subsidiz¬
ing idleness arid, inefficiency, nor.
by politically motivated foreign
loans. It will be achieved only by'
120 Broad way. New-York 5,N.Y«
/
NEW"
theii^ffaditichal:^positi6ns^arid
opefatioris% thart! :at i any ftime -in
government economy; to
effective, democratic processes, to
Railroad Bonds and Stocks
leading Security 'and Commodity. Exchs.-
>
thoughtful people the necessity of
reduction in the existing
excesses,
of .at; least ' the; avoidance - of /fur¬
back. to
*.V-..4
Activity
to
autonomy if* but taken.
i"EYen with thee will; to- do $d,"
the 1 Survey:^^ continues^^the^N>ad
York
Controls to
Commenting on the industrial
situation, the ppinipri. is expressed
seriously to impede
as
so
progress and
a::-
"
"The result of :both these condi¬
and local
New
op¬
surance is found,
however, in the portunity for- accumulation, and
fact; that in this country the con¬ development of an environment
ditions responsible ; for its devel¬ favorable
to, risk-taking ;and in¬
opment—the distress of the long vestment—which means, obvious¬
the. war periodr-are; now largely
Additionally, there, is avprbyji rentoved, thus: providing oppor¬
sipn whereby• such;aniount tunity; for correction,
representing
and
|| Transportation Fields and a
-•] Renewed Adyocacy of Public
;
the. year, there doubtless will
be authorized a distribution of $10
share
That if Wisdom Prevails There Will Be an
Unparalleled Base for
'Future Prosperity; Looks for
Highly Competitive Conditions in
1938.
| -Some time shortly after the first
dend will be paid on the
Direct Private Wires to:
.335,000 Chicago, Terre Haute and
Southeastern Income 5s, 1960, and
$250,000 Bedford Belt Railway 5s,
of
per
to
Profligate Public Spending and Industrial
Regimentation, But Adds
,
■
•
.
Survey
Trend Toward Socialized Govern-
Sent as Most Serious Problem, , Says Difficult Capitalism and a Jl
ynamic Competitive Economy Will Be Private
Maintain Under
further
Terre
Haute
and
Southeastern
First and Refunding 5s, 1960; $6,-
the first mort¬
-
.
Halsey, Stuart & Co., Inc., Sees
capital projections ;
assuming that the
funds will be used
primarily for ); ] • The world-wide trend toward increasingly centralized and social¬
debt
reduction,: we ! believe
it ized government is cited by Halsey, IStuart.
Co., Inc., in its Yearprobable Kthat the company will End Bond Survey as the most se-<£soon; call $8,056,000 (of; Chicago, rious problem of the day.
Reas¬
-
fixed
i
:
these working
and
.
gage bonds.
:
surplus mohies. would be used for
debt' reduction purposes.
"
Assuming
the : correctness
of
and
with distribu¬
new -! securities,
4 Vz
distributed on both
Year-End Bond
or
period for rehabilitation purposes,
and since the physical condition
being made on Dec. 21.
Reorganization of. the St. Paul was unusually drastic, fixed
charges being reduced from $ 13.6 million to $3.4 million and fixed
and contingent interest from $22.8 million to $8.7 million.
This is
of v the
new
spent substantial sums during're¬
organization and * during* the war
"
Simultaneously
the
capital
improvements, subject to the dis¬
cretion ^of the Board of Directors.,
Siiice the company; has already
ances
tion
some
able for debt-retirement
At long last the St.' Paul reorganization was, consummated* the
•
of
use
the
company;) would
$35-40' million avail¬
company; )
nave
1-2S60
,
*Volume; 163
THE COMMERCIAL' &
iNtirriber• 4452
*
FINANCIAL CHRONICLE
lead
Has War Increased Investment
-
^
(Continued' from
•
-
of the, ueimian
page
5.)
Ition, in his estimation, meant
-
loss of national income to
people) mibuildt
»ingup a productive capacity with
/ domestic 7 capital
accumulation,
/ which permitted him to wage the
y most; destructive - war: in history;
; Oh? own CiVil War is perhaps an?
other instance that not only;does
war not4mpedc; capital, accumula*
tion, but may actually increase it.
uals, since
debt burdens.
few years could boast, of more
/free arid; productive^ wealth than
previously,
i
that
•
«
r
Yet all this proves nothing! It
/ is quite possible that without wars
the capital growth may have been
greater. On the other hand/ war
may have been, the. stimulant to
greater and more- efficient pro*
1 duction. .Nothing,, is jwealth/unv less
it (when limited in supply)
can satisfy human needs
and be
used to create more wealth (i e.
produces income). One has only
render
that
,
the
economic
idea
crude
condition
;
It
sources.
stance,
is
that
obvious,
the
of
4
.
for
in?,
of
the
,
is
jhe natural wealth and
income of undeveloped with de-
similar
made
effect
go
can
and
.
yet
.
be
natural
in
poor
the' growth
sources.
Fallacies of Capital Estimates
j
mulatiori and
For centuries, statisticians and
problem of estimating, the growth
In England, this study
the error
of capital;
Z
called
was
Political
as
a
which is still
so
com¬
national income are
William, Petty, early in the
quantities and values that which
Century used the term in a is, t-till indefinite and indeter¬
series of tracts to prove the abil¬
minate in both poncept and forni,
ity of England to match resources viz.,, Wealthamf Income. Neither
against her Continental
rivals; can be
accurately measured or
Petty was followed by Gregory ascertained and this accounts for
.King, Sir William Davenant and the errors, revisions and controSir
of
a
host of others down to the pres*
Elaborate census-taking
vedes/which
and other
progress
statistical investigation
"sunk cap/
years has been a
further matter of serious study,
and
in
or
recent
statisticaL organiza¬
several
tions, notably the Brookings In¬
stitution in Washington and the
National
,
Bureau
of
Economic
Research in New York, have di¬
rected their, investigations along
/ these lines. In Great5 Britain and
/other
countries
have
:
been
made.
similar
'i
Robert
Sir
/
and
■
being
Giffen, the distinf guished' British statistician of the
late 19th. Century, in particular,
•
.
V
devoted much of the work oiVhls
life: to studying the
growth of
/ taphaL His> work on this subject
published in London in 1889 is a
masterpiece of statistical analysis.
I Yet, Giffen, like most professional
statisticians, liked to express facts
'
an
accumulated
the
individuals
to
this
he
adds
,
probable
/
that
-
"
Maj. A. H. Golding1
what
But
investment
banking
bankers, as a
interested in is the
accumulation and use of what Gif*1
and
was
the
never
to
varies
as
a/
director,
Major
recently re¬
leased by the Army, entered mili¬
tary service in November, 1940
and
who
He
was
with
served
Corps.
is
the
Engineer
reentering the in¬
vestment field with offices at 500
Fifth Avenue, New "York.
whole,
Of NASD Dist. No. 2
new
seems
LOS
much
Lester
ANGELES, ' CALIF.
Erickson
of
fin has
called
,
on
the head., For
chosen Vice-Chairman.
Chasl E. Pond in Spokane
SPOKANE, WASHA-Charles E;
in
Pond
has
offices in
opened
and
the
amount
varies
securities
business
originator
as
political and fiscal policy which and distributor of mining, oil, arid
•
promotes undue credit expansion industrial stocks.
circumstances.
has
At
present,
written
been
regarding the existing
lar^e war savings accumulations,Estimates vary, but the amount is
said to amount to some $100 bil¬
lion
r
of
an
offer to buy
any
or as a
solicitation
of such securities, ; ,' / ,4,
/
m%Cumulative Preferred Stock, Series "A"
and
stressed
:
offering of these securities for, sale
*
Pressed Steel Gar Company Incf
at
different times and under differ¬
ent
ah
or more.
(Par Value $50—Convertible Prior to January 1, 1956)
/
if
V
i/rv J
v" '
.
; •
yj
J
.
/ "
«
Certainly, the wartime savings
of
individuals
far
exceed
the
•
/in
quantities
and
values.
-He
/ scarcely notes the effects of effi*
ciency and productivity, or the
;
/ influence
of these factors
on
val¬
ues and savings'
/
.
as elements in
Capital accumulation or in the
•
computation of
Yet, more than
national
wealth.
century before
his time; the philosopher, David
Z Hume, concerned indirectly with
•
the
same
a
topic,
pointed out
/ importance of incentives, to
/
the
pro-
ductivity in national welfare, and
recommended high taxes on
even
the workers to get them to labor
7 harder and. produce more. Taxa-
additional
capital
accretions of
corporations. /But are these savU
ings uninvested and do they really
represent capital accumulations,"
considered
on
a
national
Of the 85,955 shares pf
/
I
.;
>
Common Stockholders for subscription at $50
/
for upon
scale?:
/
:
/
already
invested
and
are
no
longer free capital.
Only* cash
that
is
hoarded, or uninvested
csah deposits can be "free cap¬
ital," and ifthe savings are merely
result' of
creation
of
a
per
share, 77,357 shares
the exercise of the Subscription Warrants which expired
ber 21, 1945.
If the savings are in banks or govK
erhment bonds, they are certainly;
the
4/^% Cumulative Preferred Stock, Series "A", offered by the Company to its
•
">
.
were
on
subscribed
Decern-
r> /
,
J
//
'
The 8,598 unsubscribed shares have beenvpufchased
from the Company by the several Underwriters.
>
f
;
/.'I
na¬
tional
debt, i.e., an outgrowth of
government borrowing. for non¬
productive purposes, such as war/
they constitute no additional ac-'
cumulation
of
capital.
There¬
fore, there
can
be
no
gain in
na¬
:;;'v///.
/
December 28, 1945.
the
Peyton building to engage in the
a
will
as
/
J/
R.
V
"free capital,"
i.e.,
liquid capital resulting from indi*
vidual savings that is available
for investment.
Only a part of
capitals accumulation, 4s in this
form
.
—
William
vary,
the form of savings.
It
be and often is the result of
enhanced confidence in the fu¬
ture; of A speculation fever; or of
savings ; of
sinied
*
are
/
Erickson Heads Comm.
final
(i.e., the amount of
elected
Golding,
This advertisement appears as a matter of record only, and is under no circumstances to be con*
investment
,
York, Major Arnold H. Golding
signifi¬
/|
may
con¬
and corporations
arrange-
increased accumulation of cap¬
ital
the part of the in¬
vestment bankers and others
fixed
it distinctly means that increased
activity in the investment market
is not always a clear indication of
cerned with the securities market
that
The
Investment?
/
much
.,
;
on
a
some
or
Money Market.
struck the nail
great deal of wishful
a
or
-
less
The Coming Speculative Boom
There is
way
buys
difficulties Staats Co., Los Angeles, has been
prising through people, when pros¬ elected Chairman of District Com-?
perous, engaging "to invest /more hiittee/N0i./2
(California and Ne-^
than they afterwards find they
vada) of the National Association
can
save,
but the real savings of Securities
Dealers, Inc.; effec¬
not even then has been changed."'
tive January 16th.
From this last statement, it is
J. Paul Woolomes, Wulff, Han¬
clear that Sir Robert Giffen has sen &
Co., San Francisco, was
a
expectation
it
as
estimations.
,
or
Will Sayings Lead to Increased
studies
still
are
the
of economic and statis¬
lation of /Tree capital" as distin¬
ital"
marked
tical science since its inception.
processes is an outgrowth of those
efforts. The growth and accumuf
guished from fixed
have
or
the
investment)
metaphysical nature and are
largely erroneous or merely rough
17th
ent time.
more
Company of New
and savings
directly as they art
they have no visible
unless by
on
margin
"the / Stupendous growth of
liquid assets." It should .be made
plain that the calculations of cap-,
ital growth, national wealth and
among statisticians and econiomists of putting into definite
on
And
basis for estiK and
mon
Arithmetic.
of
National
way; profits
and
cantly:
"It is
when
they speak of" "unprece¬
dented funds seeking investment"
mating the burden of debts, both
national and private. He fell into
economists have labored over the
.
of
failed to give
this
discredit."
this ; is;.; well recognized and
perhaps has become platitudinous.
But it is, nevertheless, overlooked
by
statisticians / and
politicians
capital, but he
sufficient weight !to
efficiency and- industrial organic
zation as a factor trt capital accu?
re¬
In
portion of this part is compara¬
tively steady; but there is.a vary¬
ing surplus and the changes in
this* surplus or final margin are
most significant of. the general
state of trade.
When the surplus
is at a maximum it is a sign of
inflation, of great .and unusual
profits in/trade, when it/is at a
minimum it is a sign' of losses or
Ail
A
or
Sterling
j
Trust
mak¬
stock
a
'
property valuation as
of national resources
&
of the kind dealt with there. Even
.
measure
manufacturer
savings may be put, It is only
a certain part of the whole> sav¬
ings which goes to the Stock Ex¬
change (i.e., into public invest¬
ment ) and seeks new securities
.
nature.
Nations
be rich -and productively great
Bank
the
,
,
physical v materials using
in¬
community; being constantly em-;
ployed by; these savings directly
.
other
Sterling Bank
a:meeting of the Board
to create the investments in which
,
and
"At
Directors / of
merit. for sayings—a portion of the
.
-
the South
and
industrial World could not, in fact,
:
/.wrought,, from
ascribe
invested
are
.
•
house.
new
•
.
or
profit adds to his
improves his premises,
over expendi¬
ture)- throughout the war years
was
greater than the
loss
of
.
of additional
ing
wealth or capital used up in the
industrial countries to creditor community is,, and is war, there has been a "national
prove that productive resources caused by; a national difference ifi increment," which means further
their circumstances. It is because
mean nothing unless they can be
capital / accumulation
in
some
put to effective productive use. their income is so large, because form.
their natural resources undevel/
Therefore, capital or- wealth can*
Another disturbing considera¬
not be adequately measured by oped or in progress of develop?- tion in measuring
the/growth of
ment are so large, that they-can capital is the altered
r quantity or value alone.
What it
purchasing
produces or the effective use of it, afford to borrow.
Potential is power: of the monetary unit.
No
fs what gives it value.: And what it quickly converted into actual cap* one can deny that inflation is
produces or its effective use is ital, and the individual members here.
If the measuring unit of
1 dependent on the technique and of the community have less need
capital
values, / this
inevitable
efficiency of its manpower and for capital. But the circumstances "dollar? yardstick, has shrunk 30
industrial organization. •/ Certainj- are likely enough to change rapid* or
5Q%y the vast wartime savings,
; l.y, this has been demonstrated in
ly, and even now the different is not so vast as may .seem. Money
our own:■ *'miracle of. war producconditions of geographical
in circulation or deposits- in banks
groups
Z:tion." The. value of our industrial within the greater community of is no-gauge of the
growth of liorganization; created under1 the a nation like the United States quid; capital, and the par or mar¬
peacetime
incentive
of
profit, must present great variety."
ket values of stocks. and bonds
proved greater in war than our
Giffin therefore called attention are not an indication of growth or
possession
of
land,
machinery to the need for great discretion in decline in actual capital assets.
; veloped
can
-
merchant
high. / Certainly, if the
national dividend (i.e., (he excess
community indebted to other
communities instead; of bein g a
and
.
of national income
a
we
only the speculation episodes
the Mississippi
Dir. of
vestment, Robert Giffen remarked:
/"Savings arc made, as a rule,
individually.,
A
shopkeeper or
of error is
community of the United States is
probably1 much larger in propor¬
tion to the property than it is in
an older
country. The.fact that it
.
spirit of false op¬
this
Majp/H. Goiding /
-
cumulation
yet, safely estimate what propor¬
tion of wartime savings is in this
category. It would require a most
detailed// study
and analysis to
compute? it, and the. probability
which
income
-
-Sir
Robert
Giffen,!
already >
ings may represent increased-pro* quoted above; has /not7 neglected:
ductivity of individuals, with the .to consider this point/ Regarding
flow -of /additional./ wealth "into savings as a source of capital ac-'
on
To
Bubbles, but the more recent
unpleasantness in the financial
history of our, own nation.
to
savings," / or to a
psychology, or to careless
fiscal, and credit. policies is still
questionable;,.
/ v r / /
' " ;; >•-
considerable part, of- the war sav¬
might best be derived from other
•
V to contrast
clearer
not
mob;
.
region
?
-Thus, he notes
general
Sea
"accumulated
cap
a
timism.
war.
But whether this has been due
.
a1-part,^and'possibly
Yet,-
and
opera¬
of
sav?
represent an addition
accumulated capital.;-1 :. ,
r
a'basis of
as
said ^ to
expanded
market
;:oming in the artermath of
redeemed
f permanent form, such as fixed
"The relation between property capital or in additional output of
and income, roughly as the figures consumers' goods. In this
respect,
such
may be done, must disclose some*
savings •. are,; other things
thing as to the economic condition being equal, an addition to na¬
of the communities,/and help to
tional wealth. / No one
can,. as
f
in
be
page 139 of his. "Growth, of Cap*
ital":
"
1
existed
be
can
t.d
figuring capital accumulation: and
j Even the defeated South within a
ever
Debt-
fromZfutureincome, /arid/the
pro*
and
in/stock
tions./-There is, indeed, historical
precedent of stock market booms
If the
ings remain intact, then they
of wealth valuations
•
had
National
individf
was
income/from them,.
Giffen, however, did not wholly
neglect to point out thd lirpitatloii^
.
.
tional
no
intensive
activity
cjuced by them with it than with/
but it.
'//.;•/ /./:
■■■'/:// // ;;-//j
.
•
income
more
Capital?
to
17
Kuhn, Loeb & Co.
/
THE COMMERCIAL & FINANCIAL CHRONICLE
is:
Thursday, January 3, 1946
'
•
v?vV?r ^
1./ ■ •/ v*;,
.
T ,/
•
/
: /v-,;/"./
,;; >
■
VV; V•/,; v'/••/■' •/vY/t /,
The Outlook for Business
^Continued from
page 2),
i,
neither chastise you with the past
frighten
nor
more
common/ /mediums
air
water, for instance!
or
Effects
<
..
.
,
■
.
/
12
a pro forma basis, for the
months ended Sept. 30, 1945
On
(pages 78-9 of the prospectus) the
company reported adjusted Fed¬
eral excess profits taxes of $5,175,898 and Federal income taxes
of
$2,511,410. Under the new tax
law, savings would amount to
55% of the first item and 5 %: of
the latter, making an aggregate
saving of $2,976,000 : or $1.19 ; a
share. In the same period on a
pro
forma basis, the company
earned $1.08, so that had the new
tax law been in effect, earnings
might have been around $2.27 a
•
-
'
share.
v-
Pennsylvania Power & Light is
more fortunate than many1 other
utilities in that it
seems
well pro¬
tected against any* substantial eut
: in rates as a result of the big
'savings in taxes anticipated for
;
next year. The Pennsylvania Util¬
ity Commission on Jan. 3, 1945
found that the "fair value" of the
company's rate base as of Dec.
31,1942, was $220,580,000 of which
$202,000,000 was for the electric
rate base^ The Commission >#lso
installed at the
be
Sunbupr sta-
tion, together with connections. It
is estimated, based on 1944 oper¬
ating costs, that this station alone
will permit a saving' of $2,000,000
in operating expenses. About half
of the betterment program will be
financed through cash, it is ex¬
pected, and the remainder through
additional
of
sale
far
3%
bonds.
So
the Sunbury plant is con¬
as
cerned,
therefore,
it might be
necessary to issue about $10,650,000 bonds at an annual interest
cost of some $320,000/ Deducting
this from the estimated savings
would leave $1,680,000, arid 38%
taxes would further re¬
income
duce
the
saving
to
$1,041,000,
equivalent to about 42c a? share*
This would raise estimated share
earnings to $2.69 (although sav¬
ings from the new station might
not be fully realized for several
a
has, of
considerable
amount
of
War or-waf/related : business,''al^
Foreign
Conditions
/The/problems whifch /we face In
the United States
are
further
com¬
plicated rby/Wfoteign /conditions^
im¬
portant role in the future business
life of
play
an
country. Thus, Demo¬
crats, Republicans, Socialists, and
even
our
the
of
all
are
committed
a
country has increased enorr
mously — new,
industries
have
been born, new plant capacity has
been developed, and the number
our /
These
bound to cause great changes
<
f"
/
shooting;/war
competition.
end
The
the
of
chaotic indeed.
are
All of Asia is in turmoil.
has
not
solved
yet
her
Civil; strife;/ jJ"ava and Lido-China
rre in open revolt. Japan is being
forcibly reduced to her economic
/status of 1870. India and> the ad¬
countries
jacent
literally
'•
are
seething with,unrest;..
In
fact,
.
throughout
Europe,
Asia and the Near Last, misery,
want,
and ; hunger prevail and
Out
of
this
strom
of
death, discontent,
suffering
sistent
of
a
world-wide
there
new
mael¬
and
in¬
adoption
economic system. This
demand
comes / an
for
the
that" atomic
cannot be harnessed f for
productive purposes for another
five or 10 years 'and that even
then the utilization will be evo¬
lutionary rather than revolution¬
ary,/the fact remains that a hew
energy
and basic form of energy
PREFERREDS
broached/ Research is
toward
directed
power
★
has been
being
wringing
this
/from the atoms oft Other/
latter.
National
is
retaining; for
ESTABLISHED
1879
American Gas & P'r. bds., stk. & warnts.
Associated das & Electric Corp. bonds
Central Public Utility 5%'s 1952
Crescent Public Service bonds & stock
General Public Utilities stock
Gilbert J. Postley
29
&
Co.
BRQADWAY, NEW YORK 6. N. Y.
c'/// '///
; -
Direct Wire to Chicago
••;•//•'.^//Z/f'"
of labor/toward
increased
productivity, improved discipline,
and / new / labor-saving
devices.
From an economic standpoint, this
is even more important than any
foreseeable/ possible increase. In
Wage$/ Indisputably/" any: increase • /
in wages which ,is offset
by am r
increase inr productivity *is bound,
to have a beneficial and lasting
effect oh
our economy; Converse^/
ly, any increase in wages which is
not offset by an increase in pro¬
ductivity is bound to have an ad¬
verse effect on our economy.
In
thh/ words; of -ProfessorLudwig
von
Mises: "On an unhampered
labor? market,/wage rates ? tend ;to//
($10 plus
3x4).
Later the stock
is currently
moved up to 24% and
around 24. It is still
issued"
basis
on
the
on
a
"when
Stotk
Ex¬
at
which
all
those
to work finally find jobs.
Unemployment is only temporary
and
Effects
never;
of
force.
wage
If
But
than
more
small / fraction
the
a\
working
rates
are
raised above this level by the in¬
terference
cally demonstrated the power and
productivity of the system of
private enterprise. Which system
Will ultimately triumph in the
the
otper countries, no one can say:
not lead to unemployment, but to
an
increased supply of labor in
but the conflict
is far
more
thar
line
for
an
increase
in
hourly
Wage/Tat^s v which will / cpmpenf
sate for the
elimination
of
overr
time
payments. Various other de¬
mands
are
being made by the
unions in
an
all-out effort to
maintain ahdfstrenithen; theiribb/
The
other day, a
business man
friend/ of mine said,/ that some of
the demands of labor ort some cor¬
porations remind him of the forg¬
who worked oh a check for
er
of
Government
coercion
by
or
of
unions, things
As long as only one part
of labor is unionized,: the wage
rise enforced by the unions does
.
change.
those branches of business where
there
are
efficient
no
unions
or
unions at all. The workers who
lost their jobs as a consequence of: /
union/policy enter the market of
the
free > branches
and
cause
no,
wages Aq/ drop/in thosq/branchete
But if fixing of wage rates above/.
the
potential
level
market
be¬
.general,
workers
losing
their jobs cannot find employ¬
ment in: Other/branches/ and/un¬
employment emerges as a mass
comes
phenomenon ptolongea year after
year."
i Let us hope that the wage-cost- /
price problem of reconversion can
be /"solved without/ jeopardizing;
our
future welfare in this fashion.
Problem
The
of
Prices
outlook for
prices is quite
Never in history has a
confusing.
nation been confronted with such
powerful, and yet
on /
as
is
States/. today ; with
.
inflation
of
forces
contradictory,
influences
economic
IJhited
hand
sition.
and
the
on
the
the
' the=
one
forces of deflation
the' other.'. Never/ has there
such
been
fantastic
production
such effective de- mand; That these opposing forces
will. stage a .mighty, tug-of-war
during the next 12 months is cer¬
tain. That the final outcome will: ^
capacity;
never
depend on the/actions, of Govern- ^ /
ment, management and labor is" ;
equally certain, although not, so, '
widely recognized. (And, this is
not a political speech!)
No; onb
can- guarantee' .what actions: will
be:taken by these,three distinct*
and powerful factors in the situa¬
tion, so no one can be certain of
the final outcome.
However, va'.y
the C. I/O. and the John L. Lewis careful analysis/ of the pressures
toward inflation and the opposing
unions will cause trouble.
Many
unions will have difficulties; with, pressures toward deflation, wilt
internal
controversies,
particu¬ warrant certain conclusions. And,
change, although the rights have larly the fight between the right
and left wings./ Still other labor
expired; "regular" trading will
difficulties will arise between the
begin Jan. 2. At the recent price,
the stock is selling at over 22 unions and the returned veterans,
times the pro forma earnings of many of whom will not be willing
become
dues-paying
mem¬
$1.03 shown in the prospectus/but to
at only about IOV2 times the tax- bers. 1
ad j usted earnings,
The' labor, force wil) be in a
and about 9
times the total earnings includ¬ state of flux caused by the shift
ing estimated savings from the of labor from one locality to an¬
projected plant.
level
a
the other from the United States
three months/ only to. have it
amqunt come back marked ^'insufficient
set-up, and this funds."
will be distributed to its. own
Nonetheless, these
demands
stockholders (along/with stocks
have
already caused numerous
of
Carolina/ and /Birmingham)
strikes and still more are prom¬
when it. liquidates.
ised for the coming months.
It
The
new
Pennsylvania stock
seems * certain
that v additional
was offered at $10 in the ratio of
labor difficulties^ will arise whet
one share for every three National
shares held. In early trading the "downgrading" of jobs starts in
rights sold around 4 and the new on/aLlarge, scale." ^Also, the dis;
Pennsylvania
stock
around? 22 putes; between /the1; A. F; of Lj
new
/
.
tude
which during the war so graphi¬
the /remaining
under/ the
new
the principal problem in the entire labor melee will be the atti¬
reach
the present a. balance of 682,033
shares,
business is concerned,
as
eager,
now
★
Paine,Webber, Jackson & Curtis
So far
desire for something better is sub¬
,
UTILITY
^
China
serious
f
PUBLIC
Labor legislation and
legislation
affecting/labor will add to the
Europe is economically and po¬
litically in almost complete chaos.
an ideological one;
Raw mater
practically brought to a stand¬
though it does pot operate in the
fials access, market, organization
still our gigantic war-production
largest industrial cities. The loss
/and exports and imports, in gen¬
industry and, at- the .same time, It
found that 6% was the fair rate of such business should not have
eral, as well as world politica
left in the hands of the Govern¬
any great effect on earnings, if
of leturn on the electric rate base.
alignments will be determined by
ment,huge stores5 of supplies bf
Ahe choice which the countries oi
Earnings of $13,200,000 or more the experience of the utilities as
all kinds,; distributed throughout
would apparently be permitted by a whole thus far in the post/war
the worid make. / Clearly, these
the world—some usable and some
these findings, befqre there would period is any criterion (in the
two opposing influences will play
month of October all Class A and expensive even to scrap! Billions
be any need to overhaul the rate
he decisive role in determining
of dollars worth of these/&oods
structure.. In the 12 months ended B utilities showed a gain in net
the form of the new world which
hang over the markets of the
income over, last year of 8%
Sept. 30, net operating /revenues
has, to ,„be shaped out,.of the
world. Billions of dollars are also
fwere $9,363,009, and after inclu¬
Pennsylvania ;■ Power in Septem¬
wreckage of war./ Humanity is
ber showed a decline in the "bal¬ involved in the settlement of war
sion
of
estimated
tax
savings
indeed on the inarch. /'
contracts.
Would
approximate
$12,339,000, ance. after charges'' of 14%,/but
Added to all of the foregoing, is
The Labor Problem
which is well within the earnings this did not reflect the new re*the further fact that we are un¬
In the year ahead, labor will
"ceiling." / The,Z company
plans funding savings.
deniably on the threshold of a
"such further rate reductions as
National Power & Light recently
continue/to be public problem
new power, which promises to be
operating and business conditions offered to its own stockholders
number one.
The "Little Steel"
as significant and far reaching in¬
may
warrant," ; but / apparently rights to subscribe to 1,818,700
wage formula /and: similar/ war*
dustrially as was the discovery of
peed: not fear any arbitrary /and shares of Pennsylvania, which
time /"compromises
have- beep
electricity.
Although competent
■substantial cut next year, /;/;,,
rights it had received from the
broken/ Labor is on the pickel
scientists /estimate
:
unions.
problems ahead.
Strikes against
proposed legislation may be an¬
ticipated if bills to modify exist- *
ing labor laws are pushed in the
However, one thing is clear: the Congress.
Organized labor will
people are groping for a new or- certainly
strenuously oppose and, Z
dkr^Ml^hieh^ovemmehi; direct almost as strenuously advocate, /
Hon: and control constitute the
legislation as it affects their in¬
keynote!'
/</;
;
terests. 1
which
policy of "full employment"
opposed influences — one, from
and a higher standard of living,
Russia, which has captured the
differing only in the methods
imagination of the younger gen¬
they/ advocate for attaining, these
eration /and
many
intellectuals:
goals. The productive capacity of
in
ployers,,and: particularly for the
ject. Ad powerful but diametrically
Manufacturers
to
Association
National
another/: This shifting- will' cause /
problems for Government, for em- 1
/;
ters have increased and the Gov¬
ernment is certain to
are
course, en¬
of
litical! and the economic spheres.
we are committed, as /never"
before, to cooperation, political as constitute a serious threat to po¬
well as economic, in a world dom¬
litical stability/ Truly^/ the/ Font
inated by three Great
Powers. Horsemen of the Apocalypse ride
Here at home, the powers of the. over a
large part of the world
Government over economic mat¬
today!
Thus,
.
The company
joyed
have taken place in both the po¬
of workers has increased.
years).
such as
with the future;
you
A New Era in Economic
Pensylvania Power & Light' is a subsidiary of National Power
& /Light in the Electric Bond and Share system^ National has been
Evolution
planning for several years to liquidate completely (having now only
The troubled "peace" which has
common stock outstanding)/;* This has been delayed by the problem
descended on a warring .world
of "cleaning up" Pennsylvania.
The FPC and SEC have desired to marks not only the end of the
adjust the plant account and caoital structure of Pennsylvania, and greatest * conflict in history but
this has,finally been worked out.■', ':i.,,..
.—*
/,
/,..
/,
also the .end of a disdi cA1-period
A plant write-off of $26,200,619 is
The company serves some 759 in.the economic and
political evo¬
being effected and the company communities in Eastern Pennsyl¬ lution of. the Umteq/u y;$yWhile
will amortize a further write-off
vania
(including A11 e n t o w n, 1 hate to say it, it is beyond ques-1
of $25,930,121 over a 15-year pef
Wilkes-Barre,
Harrisburg, - Lan¬ tion that a new era has arrived.
riod beginning Jan. 1, 1945. Thus
caster, Bethlehem, etc.) The elec¬ The future/which this new era
plant account(; either gross, or tric generating stations are rather offers us can only be
glimpsed in
net after depreciation) will event¬
old, averaging about 22 years, and dim outlme-butY
business /men
ually have been written down by the company expects to spend
needs must attempt to visualize
about 23%. A complete refunding about $65,000,000 over / the next
"theshape of things to -come,"
of bonds and preferred stocks has five years for additions to prop¬
imperfect ; though their conclu¬
been effected, and the latter has erty. Of this amount, $21,300,000
sions may be.
been reduced in amount by sale is the estimated cost of construct¬
Changes of a. basic character
of new common stock for cash, >f- ing the initial 140,000 kilowatts to
'
.
other
and
from
cne
industry
to
while
such conclusions cannot be
guaranteed and are, obviously,
subject to revision from time to
time, they will be, at least, help¬
ful in meeting the future as it unv
folds/
(
During the coming year the
chief inflationary forces Will be
the
relative
scarcity
of; civilian. /
particularly. .consumer
goo4s (at least initially), and the /
gobds,
Volume ,163.
Number'4452
THE COMMERCIAL & FINANCIAL CHRONICLE
huge supply of purchasing power'
in the hands of the people. This
maladjustment,
in
combination
with the pent-up demand* of the
war years and the
tendency of
niany 'veterans, to go on spending
sprees, points toward
inflation.
Furthermore; the relaxation of ra¬
tioning and price controls and the
much greater tendency to violate
these controls are also definitely
inflationary.
Also,
there. are
"floors" under many agricultural
products which will prevent them
from
dropping
in
price
even
though a substantial surplus may
efcist. Moreover, higher wag€s and
increased costs of production, in
general, will have to be; reflected
in higher prices unless efficiency
is increased.
ton and
higher wages. During the
particularly the first
coming
six
year,
months, the inflationary forces
will
much
be
Not
,,
.
Inflation
Higher prices, however, are not
inflation. I do not fear inflation
as the term 'is 'understood in Eu¬
rope — a wild, unreasoning in¬
crease
in
prices.
The United
States is in the best position of
any nation in the world because
we have no direct war damage,
our productive; facilities^are far
beyond the needs of the country
and we have by far the strongest
financial position of 'banks, cor¬
porations, and individuals—both
credit and capital. Goods can be
produced in this country to meet
even
fantastic demands.
A n d,
.goods
are
the real antidote to in¬
flation.
Furthermore, in the past,
Inflations have always arisen from
depressions—never
from
booms.
And, aren't we going to hftve a
boom next year?
Higher ' prices,
yes; inflation, no.
the
nor
have
people expect. ;•
Sales of many luxury goods-may
decline becausO pf thd^dro^ m na¬
tional
women
more
may
decline from the high
you will
beginning of the great
changes in the methods of distri¬
bution which will take place in
the future, as manufacturers and
strive
distributors
reduce
to
the
costs of distribution as an offset
the increased costs of produc¬
to
V:
tion;
'•"'•
-
•
The end of lend-lease activities
will
to
the volume of exports
cause
drop sharply but foreign trade
large
as
available supplies
permit—that is,
will increase and, in general,
it
world-wide trend and
another
From
of
volume
increase
as
any
standpoint, the
trade has to
are
also
on
deflationary.
thereA is the
also
during
during the
:
All in all, the next
one
of
year will he
transition—and, its devel¬
opments
will
way
Government would resort to
artificial
measures
to
newly manufactured
25% higher. On the whole, prices
•of basic
should
agricultural commodities
fluctuate materially
not
unless
new legislation is passed to,
increase the parity prices of many
agricultural commodities. Prices
of soft goods may tend to decline
after six to nine
one
prosperity.
"The
years
the
from
I
war
by 30% and the replies from
balance
of
the
year
have
contracts
tal
Heimann
pointed out that this
is quite encouraging and
indicates that
the
dollar
Summary
•
To
the
summarize the outlook for
next
ernment
ther
twelve months,
may
sales
a
busy and momentous year lies
ahead.
in business, despite
consideration, will be
This, is a tendency and
throughout the world.
1 "Home
construction; will
started in
government' is
large
a
way
get
in 1946. The
railroads will schedule heavy ex¬
doing an excellent job in handling
penditures for improvements; The
germinated war contracts.'
airlines will expand their service
Advertising will play an im¬
and
routes
and speed
up
their
portant; part in the .business plans
There will be credit in
of the larger manufacturers and flights.
abundance for those worthy of it,
wholesalers in 1946 as
66%
re¬
"The farmers of the nation will
be: reasonably prosperous.: dur¬
ing '46.
•
ported
their
companies
would
spend more on advertising in the
hew year.
Surplus war material, does not
a strong appeal to the aver&ge company, only 24% indicating
they had plans for the purchase
61 such goods.
;
make
In
i
: Mr. Heimann's Views of 1946
;
In his
will
consumer
less
become
eager in his
more
buying, and, show
discrimination in his selec¬
Choosy
as
will
be
much
an
op-
set the pattern
for
sound recovery and a reasonable
prosperity.> If we act wisely and
{cooperate well the influence of
.
a
record of reestablishing peaceproduction and prosperity
have a favorable reaction
time
year-end review of
own
1946 this nation has
portunity to
l our
!
more
to the values offered in
such merchandise.
a
measure
of
industry and
will
throughout the world.
; "If labor and management can
straighten out their difficulties the
automobile industry and the home
appliance industry will come near
to establishing new peaks in pro¬
duction, particularly during the
last six months of the year. Much
needed road construction will be
undertaken and the states are in
excellent position to do this. ; /
"Some of the wartime controls
will have'to carry forward in the
interest ' of preventing inflation,
in general wherever
but
we
can
eliminate wartime regulations and
get back: to an unrestricted free
enterprise economy our possibili¬
confidence will be
protection to
our
our
factor in
a
tremendous
peacetime recovery."
our
labor market. If
field: "America is still the land of
"Failures in 1946 are bound to
opportunity, The only foreigner increase since they have been at
who didn't make any
money here an all time low during the war
was Columbus."
period.
However; they will not
.ThisMdvertisement
.■tX i
fe,; ••: to
sell
^
nor a
Hirschmann
Lewisohn
New
at
Lewisohn
& Co., 61,
Broadway,
York
City, members New
York Stock Exchange, announces
that Otto Hirschmann has become
associated with them.
appears as a matter
of record''only and is neither
solicitation of offers to buy
The offering is made only
any
an
offer
of these securities.
hy the Prospectus.
'
,t
'
,
\''X
g?iiSlK/S: $300,000
The
Wilcox-Gay Corporation
Twenty Year 5% Convertible Debentures
Dated December 31, 1945
Due December 31, 1965
Price 100% and Accrued Interest
policies, it is my con¬
■
fur¬
disrupted
should witness an
increase from
Copies of the Prospectus
may
be obtained from the undersigned
now on.
2; The
movement of prices will
uneven
Kpbbe, Gearliart
but there is no great
,
danger of a sharp inflationary or
deflationary development. :
3. Labor confronts us with our
Incorporated
December
31, 1945
?
invested
I
by : strikes, has
reached its lowest point and we
be
of
further tax,
been
satisfactory lowered.
according to 98% of responses. Mr.
a trend
response
on
but the volume of sales
years
will be larger.
Over a long range
period of time the return on capi¬
ranged
group
to fifteen years.
Termination settlements of war
one
return
will be less in '46 than in the pre¬
.
way or
months, but the
decline cannot be very great be¬ greatest post-war problem —and
cause of the pegged price'of cot¬ the
prime question is whether the
and
of trade will be
sidered: judgment that:
1. Business activity, unless
of
employment
This period was shortened to three
counteract
prevent
Or
In
It is not unlikely
peak of
"The intense desire of people in ties of
far-reaching
doing a good peacetime job
consequences on the future of our other lands to start
producing will will be tremendously^nhanced.
country. The developments of the at the close of the
year begin to
"Finally, after years of deficit
next; twelve months should also manifest itself in certain
types
ptye. a clear indication as to pf foreign competition in limited financing, 1946/^should lay the
groundwork for reaching a bal¬
Whether private
enterprise
or lines," Mr. Heimann
pointed out. anced budget no later than 1948.
government ownership will pre¬ ''This no doubt will
once
again If that is done the restoration of
vail, in the United States. In short,
bring to the fore the question, of
of life!
come.
Prices
dle of the year.
'
full
1
,
"The
As to the prospect for full em¬ that 1946 will see the
ployment, 50 % indicated that the these disturbances past.
country could expect five years of
have
say ; that,
on the basis of the
present economic factors and gov¬
-durable goods will be from 5% to
the
'
*
,
coming year
possibility, although probably re¬
mote, of a buyer' strike, particu¬
larly in view of the decreased in¬
•
the
.
sound fiscal
a
the part of the govern¬
on
,
_
•and manufacturers to
dispose of
isub-standard goods as rapidly as
possible will have a deflationary
effect. .And, finally,
and
of. business
r
other course would hazard
such a development.
another, the volume
maintained at a
3Ioreover, the efforts of merchants politically satisfactory level.
the market
thrown
volume
.
our
eral
be
were
^
during 1946 is
civilian
In view of the
the present
pense.
Large numbers of older temper of labor, I fear that any
men and women will disappear
prolonged sharp decrease in civil¬
Irom the labor market. And, fi¬ ian
production will create serious
nally, there is an enormous back¬ disturbances in our economic and
log of odd jobs for people willing social life. Undoubtedly, the Fed¬
will
reconversion
policy
ment.
.
a
turn to school at Government
•commodities
consideration.
' -
"The great need
commercial character will be
a
in
will be in good volume.
The decreaese in hoarding and
the probability that many hoarded
der
business Mr. Heimann predicted
high production in 1946, especially
Collar,; workers have been. in¬ in the latter half of the
year, with
a period of reasonably full em¬
increases in: wages, which are cer¬
ployment and quite satisfactory
tain to _be granted, will be fol¬
earnings for industry.
He points
lowed by efficiency and
discipline
put that the urgency of immedi¬
reflected iii increased
productivity. ate
demand will taper off in the
I 4. We must avoid sharp in¬
closing quarter of the year and
creases in costs which, will
j ebp- that the
ardize
liability.
..
labor-management rela¬
reported tionship should begin to show a
now un¬
definite improvement by the mid¬
In the geographically inaccurate any action is taken along this line
it. will have to be based
upon
volume; as 'credit, jbut philosophically; true Wordsof
sound statesmanship.
government restrictions, and the great humorist Harry Hersh-
of
servicemen will weir?
.
14%
that such increases
customers
r
,
witness the
a prolonged vacation after
long hours and privations of the
war
years.
Hundreds of thous¬
ands of veterans, especially the
younger ones, will take advantage
cf the G. I. Bill of Rights and re¬
to do them.
addition
In
vey.
in comparison
and
years
the establishment of
of
by the
this sur¬
>
lower prices*
T In the next 12 months,
•unemployment will be only tem¬
porary,.
Many war workers and
ex¬
executives reporting on
pre-war
they -will be
reasonably limited in number and
since V-J day by 72%
■>
and powerful cush¬
come
creased
to
the companies represented
"catch-up" period. v
tion-.
He predicted that .the holi¬
may hold back in their purchases
'^/ Yhe Volume of private trade/
day trade for 1946 will jamount to
in some lines in anticipation of both
; domestic and- foreign,5 ■will
a
tremendous volume, but that
better quality goods and possibly increase.
ion to
if turning
because
peak of the present year. There is
alsb/ ther probability that peb'ple
will it create
unemployment. The psy¬
chology of the displaced workers
will ^ much better thau in the
'30's because they know that their
ihc6me?6ii(i
eveii chance that articles Sold to
unemployment Jihsur.nhce with its reserves of $7 billion
new
some
useful articles will again be'avail¬
able in the market.
There is an
thermore,
a
great as
as
problems it did in the
1930's. Most families now
savings to fall back on. Fur¬
is also
of durable
as
plentiful; although this will hot be
same
•early
and spend more or are your
budg¬
consumer goods etary,
and; thrift. program to re¬
automobiles, refrigerators, main the same?"—only 38% re¬
washing machinery, and house¬ ported they planned to save more
hold furniture, will increase with and
spend less. Fifty-four per
the' rise in the supply of the ar¬ cent said,
they would continue on
ticles. The millions of men and the' same'
budget and only 8%
Women released from the services Indicated that it would
be neces¬
will greatly increase the sales in
sary to spend more and save less.
many lines as they buy clothing
;
Ninety per cent reported they
and the other items of a civilian had? not
changed. their habitsof
outfit; furthermore, demobiliza¬ church attendance? during or since
tion will cause the number of the end of the war
and only 36%
marriages to increase sharply, sa id they planned to give more for
: thus creating a demand for house¬
charity and for the support of
hold goods of all kinds. There will their church in the
year ahead.
also be an increase in the sale of Fifty-eight
per cent indicated no
certain, food items as the supply of
Changes in this regard,
scarce commodities becomes more
i ' 'Wages .and salaries of white
f Sales
such
the
ment estimated
their
not be uniform.
out; The increased unemployment
;■
,
The outlook for trade is good. ment.
Certainly, domestic trade in civil¬ ■i In response to the question:
ian goods will increase in volume "Are you
intending to save more
and in value, but the increase will and spend less in
1946, or save less
?The. forces of ddflatioir oppos¬
ing the inflationary tread are
likewise. important,
widespread,
4ahd powerful. The first deflation¬
ary influence, in order of impor¬
tance, is, of course, the decrease
In national income; particularly
the item, wages and salaries paid
uncertainty of .finding:
'"satisfactory"
new employment
will
discourage spending.1/ Although many people will be out
of work, I doubt that unemploy¬
ment will be very large, statis¬
tically speaking; Certainly, it will
not doe as great as the Govern¬
,
cating they would get along with
present household equip¬
Good
•
\
;ahd
Survey Points
To Prosperity in 1946
pronounced
than
the
deflationary ones. It
seems fairly certain, however, that
the - remaining controls and, the
{Continued from page 7)
rapid increase in the supply of style or equipment"? Ninety per
civilian goods. (provided always cent
replied they did' not intend
that the labor difficulties do riot to
buy new automobiles in 1946
disrupt production too much) will but would wait for the completely
keep prices from a runaway, or remodeled cars expected in later
even pronounced, upward move¬
years.
ment. On balance, I do not antici¬
: As to whether their wives
would
pate a change of more than 10% buy new household
equipment
either way in the Bureau; of Labor such as
ironers, washing machines,
Statistics
index
of - commodity refrigerators,
vacuum,; cleaners,
prices during the next 12 months the replies were evenly
divided,
—however, the chances favor an 50% saying such purchases would
increase rather than a decrease.;
be made and the other half indi¬
.
Prices
be out of line
Credit Men's
more
Trade Outlook
Higher
19
Company
/
THE..COMMERCIAL
20
FINANCIAL CHRONICLE
In fact, now that 5% has been
established as a practical maxi¬
mum by the NASD on over-the-
counter". transactions,
we shave
noted a sense of sheepish apology
in
much
Some
shares.
Company literature coming to hand
opportunity to apply the needle
gently at' certain points where a little constructive criticism appears
to be in order.. If we were permitted to suggest some NewYear's
resolutions for the investment company field, they would be along
the holiday week gives us, an
the following
lines.
7%
or
the
on
as
And
yet the purchase of
investment company shares by an
investor is in >no way comparable
to
transaction
a
counter
The
in
an
over-the-
security.;
investor
pays
a
net profits realized
by mutual funds from the sale of
At present
I
load
on
funds inevitably receive
"reg¬
companies."
to maintain their status as
ulated & investment
-
mutual
of
shareholders
markets
of managing their
investments must be paid out to
shareholders each year if they are
tinuous process
each
year
part of the. appreciation on their
invested capital in the form
of
dividends on which they must pay
taxes. Even if they reinvest these
a
ofmaintaining profits in the
same
mutual fund
fund
shares
sides
both
covers
the transaction.
of
And in the first
he is simply buying; an
instance
individual security with all the
risks that kind of transaction in¬
volves. Whereas in
his investment
a
mutual fund
carefully
selected, broadly diversified group
the profits are still taxable to the
are treated as ordinary corpora¬
of securities of leading American
shareholder.
tions and become subject to fed¬
corporations.
And
in
addition,
Entirely aside from the possibil¬
eral income taxes. Under present
through the mutual fund he de¬
ity of shareholders confusing these
rives all the advantages of coop¬
laws, these net realized profits are
profits witlt ordinary ^dividend in/ erative
investing, including readypaid to shareholders in the form come (and many do), the arrange¬
guaranteed marketability of his
of "extra dividends" and are tax- ment is obviously unfair both to
such status is that otherwise they
whence they were
from
received,
covers
a
.
shareholder
the
vestment
fund.
It
and
the
to
in¬
management of a mutual
may increase the taxes
and the fhvestment costs pf Those
shares.
When
it
to
comes
listed
vest
tain
similar to the investment
fully invested position.
it
seriously
hampers
the
a
And
freedom
of
investment
manage¬
ment by injecting a complicated'
tax
problem into each investment
decision.
We therefore suggest as
tion No.
1
that investment
make
managements
pany
Resolu¬
a
com¬
con¬
certed effort during 1946 to have
this situation remedied by appro¬
secur¬
ities, anyone who has ever stopped
to figure it out knows that to in¬
shareholders who wish to main¬
LOW PRICED
on
a
round-lot basis in
a
list
holdings
of the average mutual fund would
require far more capital than most
investors possess.
And even to
approximate the
holdings "of the
so
tion No.
2
that
were
to invest
through the fund. On a
$1,500 investment, the round-trip
costs of investing in as few as 20
INVESTMENT
'
they
are.
v
'■
' '
Distribution Charges
Y
Distributors Group, Incorporated
New York 5, N. Y.
in
of
from elements whose inter¬
late
the field, but
heard the same
counter to
we
have
equity investor
average
for his money at
more
lower cost
through mutual funds
than in any other form of equity
investment.
"Trust Shares"
bear
relation to modern mutual
no
funds, they
are
still
a sore
the minds of many.
then should continue
public acceptance. under
to
an
outmoded; and dnsavOry label is
difficult
to
understand.
Today
most mutual
funds
take the
cor¬
porate form; and those which do
not lose nothing but rather gain
by bqing known as, "investment
companies" or "mutual funds."
The Investment Company Act of
1940 established legal precedent
for the first; anil the old Regula¬
tion
of
Q
the
Internal
Revenue
Code set similar precedent for the
title, "mutual," in connection with
these funds.
Resolution No.
As
3
com¬
continuing
pany, sponsors make a
duTing 1946 to bring about
of
the
(N. B.
term
There
"trust
are a
lot of
throughout the coun¬
need "educating"
point.)
this
Here'jS
wishing the investment
field and all who are
making big profits as a result of connected with it a bigger and
The complaint that a handful of
distribution
charges / is
that no man should be per¬
mitted t(> team more than .$25,000
a
except the President.
The
plain fact is that, of the roughly
35 investment company sponsors
presently active, the great major¬
ity are making no more than a
fair living out of a job well done.
year
stantially would force
/hem to curtail their activities
To reduce the present rates sub¬
many hf
company
better 1946!
-•:W
or
Gahan to
Manage Dept.
For Schoellkopf Co.
Inc.,
,,
P.
John
that
announces
Gahan has become associated With
them
as
trading
manager
of the corporate
department
Gahan
well
is
the New
in
Street.
Mr.
known in trading
circles and for the last four years
has
with
associated
been
Hols-
apple & Co.
dBBkj/BSjC
BOND Shares
at
Melady
with
&
Market
<4^
^
investment dealer or
Prospectus
upon request
been active
Chicago
•
individual floor
an
H. F.
Boynton &Co.
Opens in New York
Formation of the firm of H.
2 Wall
has
F.
F.
Street, New York City,
announced by Herbert
been
Boynton;
Philadelphia
•
Atlanta
Elwood D. Boynton,
Commander; U/S. Naval Reserve;
and Rodney Boynton, Lieutenant,
U. S. Naval Reserve.
of
the
firm
Formation
previously
reported in the Financial Chroni¬
new
was
cle of Dec. 20.
Resume Duties at Hirsch
Hirsch
&
New
York
Co., 25 Broad Street,
York
Stock
City,
members
New
Exchange, announces
that Major Daniel T. Pierce, Jr.,
A.U.S.. and Lt. Alphonse A. Shelare, Jr.,' A.U.S., have resumed
their activities as
in the firm.
general partnters
mam
Reioins G. B. Gibbons Co.
Geo. B. Gibbons & Company,
Inc., 49 Wall Street, New York
City, dealers in municipal bonds,
Jr.,
that
Geo.
Lt.
A.U.S.,
B.
Gib¬
Inf., lias
been
his
duty and has
activities
as
vice
a
president of the corporation.
With Lionel d. Edie Co.
INCORPORATED
•
as
broker; prior thereto he" was a
partner with John Melady in John
Melady & Co.
FUND
Lord, Abbett & Co.
New York
formed
William fJ/KMeltedyF the Exchange
member, Arthur ViCrofton/Frederic C. Shipman, general partners,
and John Melady, limited partner.
;
William J. Melady has recently
resumed
PUTNAM
NATIONAL SECURITIES &
120 BROADWAY
be
will hold membership on the New
York
Stock
Exchange, will be
released from active
OF INVESIIKC COMPANIES
^
RESEARCH CORPORATION
will
at; 14 Wall Street,
City, to engage in the
securities business, effective Jan.
15th.
Partners in the firm, which
bons,
10RDABBHI GROUP
Co.
offices
New York
announces
Prospectus upon request from
your
Formed in New York
Schoellkopf, Hutton & Pomeroy,
York office, 63 Wall
LOW-PRICED;
Priced
-
at
<
^
\
Malady & Co. To Be
shares" in connection with the in¬
dustry.
.
therefore,
suggest that investment
elimination
:
investment.
run
selves.
Securities Series
spot in
Lionel D. Edie & Company, In¬
■
Los Angeles
corporated,
Lt.
request
SHARES OF CAPITAL STOCK OF
New
Commander
sumed
York
his
Fund
Distributors. Inc.
50 State St.,
Boston
an¬
U.S.N.R., has
association with
and has been elected a
Putnam
City,
that William M. Bennett,
nounces
Prospectus upon
re¬
them
vice-presi¬
dent, and that Gordon F. Wing,
Lt.
Commander,
U.S.N.R.,
joined
the
account
has
supervisor.
organization
as
an
Manhattan Bond Fund, inc.
/.The "Board of /Directors of %
REPUBLIC
Manhattan
""
/
FUND Inc.
Founded 1932
'
^
Prospectus
from
your
may
be obtained
local investment dealer
;
Prospectus
The
may
Keystone Company "
°J Boston
„
THE
local investment dealer,
PARKER
Distribution
/ share'
Street, Boston 9, Maw.
of
payable
5; cents per
15,
January
1946 to holders of record
as
/ Of the close of .business Janor
^
fbar YvS,;. 194(x.
HUGH W. LONG arid COMPANY
CORPORATION
.
-
"
50 Congress
declared
.
be obtained from
or
your
Bond
Fund, Inc.
Ordinary Dis- I
IributiOn: /No/* 30, of 9 cents /
per share and/Extraordinary A
has
INVESTORS
ONE COURT STREET, EOSTON 8, MASS.
,
Distributors
."I; yi iV.'VV. 1
V
<.
.•
\
York ft
'
1
IrtcorDoraf'T
National
a.--
15 William St., New
;
;
parent organization, Blair & Co.,
Inc., has more than 80,000 .stock¬
holders concentrated chiefly on
Why the in¬
dustry
seek
Pittsburgh, Buffalo, Boston, Philadelphia, Cleveland, Chicago, Los
Angeles, and San Francisco. / The
the Pacific; Coast.
.
Although the old fixed trusts
are no longer an active factor in
the investment company field and
:
proved by directors of Blair &
Co., Inc., 44 Wall Street, New York ;
City. Blair Securities Corp. deals ;
in government; securities With of¬
fices in New York, St. Louis, >
on
usually
thing from dealers and from in¬
vestment company sponsors them¬
NATIONAL
Will
The acquisition of. all the out¬
standing stock of the Blair Securities Corporation has been ap-
try which will
will
cry
on investment company shares is
top■ high! Not only has the charge
ests run
What
They will show
just another echo of the New Deal
■
How many times have we heard
the past year that the "load"
come
shares.
show?
,
newspapers
securities
30
present
-
Acquires
Corp.
Blair Securities
between 12% and 16% of the total
investment company sponsors are
learn what
DEALER. OR
Blair & Co.
Boynton & Co., Inc. to engage in
the investment securities business
or
fide mutual funds, we have yet to
PROSPECTUS ON REQUEST FROM
that investment com¬
fund
the
f ffort
than if he
Resolu¬
as
about oresent distribution costs of
mutual
substantially
more
,
suggest
we
pany sponsors and affiliated, deal-,
ers get busy and present the facts
we
its should not be accorded to bona
•
And
average mutual fund on an addlot basis would cost the investor
priate legislative action. If there
are any sound reasons why com¬
plete freedom in the paying out or
reinvestment of net realized prof¬
63 Wall Street
few
lished sponsors.
a
able fa "the Shareholder at. the
which may amount to 10% for
long-term capital gains rate.
the round trip.
The distribution
Thus, during periods of rising,
charge he pays for his " mutual
con¬
a
business in the hands of a
of; the bigger/ better estab^
today gets
purchase and the sale of
over-the-counter
security —
—
—
securities in the ordinary and con¬
YOUR
pany
tnese tacis
>
be
centration of the investment com¬
dis¬
of investment company
altogether.
result would
an
Capital Gains Dividend*
importance
accepting
out of business
go
The end
both the
—
The
6%
as
tribution
Suggested Resolutions for 1946
Thedearth'of t investment
over
dealers for
some
to
Thursday, January 3/ 1946
48
Wall Street,
.
'
Distributors
New York 5, N. Y.
-
Volume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
nomic
maladjustments
ficulties.
Economic Fallacies ol the Ability-tc-Pav Wage
21
; Also I think th$ rest
world would have more
The expenses of each member
(Cbiitmued from page 4)" y ; flationary rise in prices, instead
conditions.
From „a' long.. time of holding down costs and prices of this institute and their services
point of view inflation is probably and increasing production, is cer¬ to be paid for by the respective
the Government's most difficult tainly not for the best interests organizations they represent, and
the Federal Government will bear
and dangerous
problem.
! of labor or the economic welfare
of the country as a whole.
Such the expenses of the representative
The Best Solution
'
of the Bureau of ^Ihtei^i^fteVer
a policy would be the equivalent
There is no simple solution to of consuming the seed corn in¬
these maladjustments created by stead of saving it for production.
All labor disputes of whatever
*
for
our
and
if
with
more■
we
run
our
af¬
own
less
internal struggle,
reason.
5:,-• vy
war conditions and practices.
Unless there is a spirit of give and
take
on
the
at
all sides in order to arrive
best
i
Initiative
possible solution for
,
F. % Eberstadt & Co.,
Inc.,
Broadway, New York City,
their findings; and decisions will
|
be final.
♦
'
.
-
permanent
good of all, any
settlement of the dif¬
term
near
\ •-
;
•
.•
t-
Loud
as
If enterprise is
to be
paid. * Rent must be
and
Breitbart
these endeavors?
theories, the
"
Under
these
business
successful.
clear that
suc¬
M I
high
pay
efficient
Whereas the
ful
will
business
good
for
success¬
be. able
to pay
no one
Burlington Mills.
Earnings
reward accord¬
ing to the contribution all factors
and
wages,
on common
$2.63
to
on
tors, such as wages according to
the ability to pay, the other fac¬
tors of
a
i
>
our
schedules sufficiently flexible for
minimum of delay. Through additional acquisitions in this
country and abroad the company
further solidified its position
yarns.
During the
year
the world's
as
the
company
also
simplified and strengthened its capital structure.
THE FUTURE:
some
crimination against the other fac¬
production will
soon
:
tion
put
v
this
of
theory
meeting this demand,
constant aim will be to
abdi¬
would
The need for rayon textiles will continue to exceed the
time. In
lease of
plan to
carry
forward
supply for
our program
phase of
soon
produce improved fabrics at lower cost. With the
nylon for hosiery and the recent additions to
our
operations will
assume
end to private initiative, in
an
we
of
fabric development and plant improvement and expansion. As in the past, our
•
cate and take flight to some place
of greater safety. 0 The applica¬
But it is quite
,con
peaks.
stock after preferred dividend requirements amounted
largest fabricator of man-made
wages.
When one factor
production is favored by dis¬
of
another matter to bring about this
ad justment with f fairness ; to all
/
progress
new
increase the purchasing power of
It is easy enough to say that
prices must equal costs if pro¬
duction and employment are to
continued
a
continued forward
Both total sales and net income reached
share. V-J Day found
per
reconverting with
money
ance.
and
The 1945 fiscal year was one of
THE PAST YEAR:
be driven out
soon
of business.
adjustment of prices and costs in¬
to a balance, and then allow free
competition to carry on this bal¬
resumed
;
•
labor, and will
opinion, and all production
and employment would decline to
the point where the Government
would necessarily have to regi¬
ment production and distribution
in order to keep order and feed
the hungry.,:.
*
-
our
re¬
hosiery capacity, this
greater importance than in the past*
my
It
Takes
Capital to. Make Jobs
A
large part of the savings ac¬
cumulated will be required to re¬
convert to peacetime
production,
provide
the
new
equipment
needed, and if new jobs are to be
be
made,
iy
The
amount
If
of
A
many
ambition
A
by indi¬
be done by
can
my •?
Solution
;
$4,982,306.66
i
•
1,764,248.37
Operating profit
the
to
;
Depreciation and amortization
people in responsible posi^
Constructive
It is easy
Other
ing program is suggested:: >,
come
from peo¬
|for new employees.
mated that
we
?
new
and
2.
esti¬
need about 10 to 12
million more jobs in the
post-wair
years than in the pre-war
possible to
as
institute
An
;.;
to
\
settle
.
i
;
=
•
,
connaence.
to
pay
out
To
their
ask
venture with
•.
corporations
reserves
gge^„jtq^upport-
in
in-
an,
in-
;
zy i
•••••«•
■
; /
305,840.23
•.
■
(b)
Two
representatives
Net
t
from
the Government represent-
ing the Bureau of Internal Hevenue.*••
v •:
--
-
-
*>•;
*
-
minority interest
excess
N«t
iY";
:>
.
.
1
15,958,239;09;
1)378,016.69 •
.
14,580,222.40
.
:^
profits taxes (after deducting special
Adjustment Act of 1945).
.
$6,555,749.52
2,188,464.50
.
,.
'
•
•
•
•
740,788.13
•
9,485,002.15
5,095,220.25
profit, after taxes, before minority interest.
Less: Net
114,491.47
profit of subsidiary companies applicable to minority interest
profit transferred to Cdnsolidated Earned Surplus;, v
i
•
i
1
•
$" 54,980,728.78
;y; ;:■■':.;
Total
from
organizations.;
(d) And; .one ^representative
(including charitable donations of $619,862.04)
Foreign and state income taxes
r'
-
assets
the
of
company
as
at
September 29, 1945, amounted to
$55,108,640. The working capital position
the year.
,,
•
;
.
•
6,746,555.03
15,652,398.86
Federal income taxes
labor
years capital and management selected
:because of the increased number'
by ways and means to be ar¬
of people of
employable age look¬ ranged.
* \
,
■
,
ing for jobs. Furnishing these jobs1
(c) Two representatives from
depends upon the supply- of capi¬ agriculture to be selected
by the
tal and the
ability of these em-' farm
fployers of capital to
-
credit under Tax
tax
disputes equitably be set up with
the following representation:
(a) Two representatives for la¬
bor elected or selected by what¬
ever, manner chosen by labor or¬
ganizations.
jobs
is
It
rapidly
Federal
management
as
about if continued.
then there
inevitably be fewer
•
;
Provision for Federal, foreign and state taxes on income: *
-
•
sion and inflation that the present
cessation of production will bring
save, v and stockholders
who sacrifice dividends.
If cor¬
porations are compelled tb use
up
their present
savings and even ex¬
pand their capital to pay5 wages
/must
;
.
profit before provision for Federal, foreign and state taxes on income
and before
get into full production in order
to avert the threatened depres¬
ple $who
|to present employees,
;
work: Immediately
proceed
employee.
per
Both labor and
resume
stockholders and
bondholders have supplied $42,000
capital
1.
-
business
of
•
»
•
.
.
'
.
it is
to criticize but
best possible solution the follow¬
times this amount of capi¬
tal per
employee.
One manufac¬
turer of food products
reports that
worth
;;
income.
.
A
conflicts which have grown out of
the war.
As an effort toward the
-
many
This capital has to
22,398,953.8?
Selling, general and administrative expenses
Net
his
85,800,892.86
Present Wage-Price Conflicts,.
ufacturing business might require
facturing business might require
in
$108,199,846.75
i
depreciation and Amortization -i5
Grass profit, before
theory upon em¬
not
believe- that
capital
a man
;
this country
Other deductions
employee, while
period from October 1,1944 to September 29,1945
Cdsf bf safest exclusive of depreciation and an)ortizdtibn
might require noL over five tjto not easy to find a solution to tlie
fifteen thousand dollars worth of present complicated wage-price
per
PROFIT AND LOSS
Sales, less discounts and anticipation, returns and allowances
to
com¬
or
tion want these lesults.
store
grocery
in
real
fascism
rection, I think it
established many times that the
amount of caoital per
job varies
from one to fifty thousand
dollars
-
a
enforcing this
ployers. I do
requirements, it has been
employee.
is
about
munism
for the amount of
capital per iob
in all industry that will tell the
per
there
bring
capital required per job varies
with the industry and its location.
While there is no definite
figure
correct
For the
,
provided hew additions to ^capital
must
CONSOLIDATED STATEMENT OF
of
$9,168,971,
to
$13,555,492.
'
'
'
/
,
,
,.
a
was
further strengthened during
$37,590,063 compared with current liabilities
ratio of 4.1 to 1. Cash and Government securities amounted
Current assets
V
~!
V
were
'
''
^
by
The increase became effec¬
tion.:
tive Jan. 2,
(and Subsidiary Companies)
Under the free
,
the Office of Economic Stabiliza¬
free enterprise sys¬
unsuccessful
business
of production. The profits of suc¬
price-wage-inflation problems can be cess will be used for further in¬
settled separately. Each is a sep¬ crease in production and profits,
arate leg under the same stool.
' and by increasing production and
Regardless of the means or the jobs, produce more goods and
This in¬
procedure then the best solution services for everyone.
and the only workable solution to creased
efficiency
will
expand
the wage-price problems is the production and employntent and
be
authorization
CO RPO RATI O N
of these major interrelated
sustaining basis.
since its -incep-:
Administra¬
Price
induce¬
an
will not be able to keep
over-all conditions, or both prices
and wages be adjusted to the iriseems
thus destroy
the
tem,
excess money
the best solution of the
It
with the company
associated
of
competition,
threaten y inflation,
either this factor must be operated
fiation.
been
Office
tion, following
pay
The
would
business
ment to succeed.
credit
for
have
the
un¬
would
y
wages and
cessful
If prices are maladjusted,
the best procedure in adjusting
prices to costs should be found
upon
Breitbart
di¬
a
and Mr,
low wages, the less success¬
very
pation.
If the
Treasurer and
as
Both Mr. Loud
rector.
effort, what will
extra
encourage
ful the lower the wages.
adopted.
di¬
a
gained by sacrifice, research,
without pay, and at as high pay as
it can command in another occu¬
and
retail coal prices all over the na¬
tion was granted on Dec. 28 by
Vice-President and
rector and the- election of Daniel
carried to
theories
two
skill
paid, and management must seek
its best opportunities/
No factor
of production will serve very
long
and
Nelson
of
An increase of 10-cents a ton in
logical ends
would take
away all profit and set up eco¬
nomic fascism.. If there is nothing
to continue the people who save
and furnish the: venture' capital
must also be
election
Coal Prices Boosted
39
their
Present and future wages must
come
out of
production within
reasonable time.
these
of
partnership duties in
Clark & Co., 72 Wall
Street, New York City, members
New York Stock Exchange, fol¬
lowing three years service, prin¬
cipally in the European Theater,
with the Army of the United
Charles
an¬
.
a
,
much, poorer,
the
nounces
It all sounds very plausible that
In my
opinion labor, capital
^corporation manager or any
(the security holders), manage¬
ficulties seems
improbable.5
If other employer should pay wages
each of these wage-price difficul¬ according to his ability. This the¬ ment,: the Government and the
ties is to be fought out on the basis ory and the theory of the gradu¬ consuming public would benefit
of who can endure the
longest,- no ated tax based upon ability to pay- from this businesslike method of
bne will gain and we will all be have something in common. Either
working out of our present eco¬
the
]
active
By F. Ebersladt Co.
kind for the ndxt three years will
be settled by this institute, and
Pay
Wages Based Upon Ability to
Would Destroy Private
Loud, Brietbart Named
Duties,
Clark Partner
Robert H. Rich is resuming his
respect
t
the
Robt. Rich Resumes
of the As Chas.
economic and democratic
theories
fairs
dif¬
and
y■■
-
,
-
J. SPENC5R LOVE, President"
22
E
THE COMMERCIAL & FINANCIAL CHRONICLE
;
Thursday, January 3, 1946
Bank and Insurance Stocks
Dangerous Cause o( Bullishness
"
This Week —f
Insurance Stocks
tionships:
"growth" industry, as was demonstrated in this
1943, issue of the V Chronicle." In addition, it
is ah industry- that can point to a record of earnings and dividend
payments which stretch unbroken over many decades.
For example:
Security of New Haven has paid dividends without interruption for
51 years; Hartford Fire for 72 years; Hanover Fire for 85 years; Con¬
tinental Insurance for 92 'years;
North River for
average total net operating prof¬
107 years and
Franklin
for
114
years. ;
This its for the three years 1925-26-27
combination of dependability and have, been used as the basis of
Insurance is
v
(Continued from page 3)
••
view of developments which militate against a return to those rela¬
v
The following table illustrates clearly what appears to be
relationship of bond and stock yields.
unfavorable frend in the
an
a
column in the Deei 9,
Barron's
1
it
Highs
.According
to
Best's
"Aggre¬
gates and Averages," the total vol¬
ume
of
net
premiums written
abnormal
1925
$1,139,000,000 in 1944,
True, this is not a
startling growth in 20 years, but
to
not be
it should
since
the
1925
average
net
Year
v
YYYY Y'iiY Y"
Operating
Profits'
100
1925-6-7 Aver.
1928
171
*
1929
lY122
1931
v
^
134
^
It
the
record
of
the
of
21
1
investment incorpe;
net
.———157
un¬
derwriting profits, however, fluc¬
tuate widely, depending on fire
and other losses, but net invest¬
ment income is relatively steady.
The year 1925
was
one
of rather
heavy fire losses and of rela¬
tively low underwriting profits;
because of this, any comparison of
earnings in subsequent years with
1925 as a base, would be mislead¬
ing.
In
this
study,
therefore,
109
—166
—137
observed that only in
one year, ;1932, did total earnings
drop below the base period; it
It will be
will also be noted that 1929
.
was
the peak year. -In 1942,Yearnings
severely affected by heavy
were
earnings
cessive
while
1944
depressed by ex¬
losses,
were
war-induced
fire
losses.
of
145
is
below
1944
above
than
more
halving of the yield
on
of
yield of 4
mon-
1944
or even
stocks
as
3^2%
each
is
case
below
possible to detect
less
than
in
was
was
not
seems
the presence of
an
165;
the
in
ing to the historical relationship
with bond yields.
•//
un¬
investors feel, that
are/ high
Fidelity-Phenix,
ford/225; Ins. Co. of N. A., <277;
arid
the
case
f
and
-
-
Fij-e Insurance Co^
INSURANCE
STOCKS
Y
yield between stocks and; bonds
yields
If,
a
was an era
rose
of %,1, or 1^% will seem of lit¬
tle moment compared with the;
level lower than bond
i/y■
to^be generally
as seems
relative capital safety of bonds.
;7
ac¬
In
Pittsburgh
bond yields. is to be expected be-
reached, and; this justifies retain¬
ing the relationship between stock
bond yields in the
rank# of
the bullish arguments at
the pres¬
and
ent time,
be
real
a
danger that an unwarranted ex¬
pectation of
low
as
fluence many
important
in
of INDIA. LIMITED
this
whole question is the fact that the
Yf
over¬
NATIONAL BANK
3% will be extremely diffi¬
'
more
investors to
stay the market at the top.
cult.
But
repetition of the
a
experience of the 1920's will in-'
Bankers
to
the Government in
'.
Kenya Colony and1 Uganda
present low yield on Federal gov-
Office:
26, Bishopsgate.
London, E. C.
Burma, Ceylon,; Kenya
Colony and Aden and Zanzibar * ^1 * x
OF AMERICA
Subscribed Capital
£4,000,000
Paid-Up Capital-*..
£2,000,000 ifi
-/:.; Reserve Fund«„...«.L£2,200,000 y.
KAISER-FRAZER CORPORATION
Members New York Stock Exchange
-
(b) Nevertheless it must
recognized that there, is
Bank-conducts
The
description
ot
Trusteeships and Executorships
KERN COUNTY LAND COMPANY
;
every:
banking and exchange business
-
r
new york 5
Telephone QIgby 4-2525
said
be
can
foi*e the end of this bull market is
ARDEN FARMS COMPANY
i Wall st.-
it
Branches in India,
and other leading exchanges
>
conclusion
(a) some further narrowing
of the spread between stock and
(Barron's)Y^then common stocks
must sell to* yield only 2% % to
reach the historical relationship,
-That an average such as the Dow
Jones industrial average can reach
such a figure is highly question¬
'
Teletype—NY 1-1248-49
j
that:
Head
Laird, Bissell & Meeds
(L. A. Glbbs, Manager Trading
Department)
b®
with iheir money. A difference in
individual. ..companies)
is Very
grea't and is deserving of careful
study by those, interested in mak¬
ing selections for long term in¬
BANK
7-3500
will
in which
bond
Bought—Sold—Quoted
Members New York Stock Exchange
120 BROADWAY, NEW YORK 5, N. Y.
they
^
vestment.
of
enough
during the last
stocks. It also
4
Boston;
161; Hart¬
sdso undertaken
r
;
PACIFIC GAS AND ELECTRIC COMPANY
Australia
SAN DIEGO GAS AND ELECTRIC COMPANY
PRIMARY MARKETS IN
'
;v
.
•
\
" kht.
'
•«
.
Bought
BANK and INSURANCE STOCKS
Sold
BANK~OF
1
.
New Zealand
ana
NEW SOUTH WALES
Quoted
(ESTABL1SHED1817)
'i'
T
?:*:
<
•*•'","
Paid-Up Capital .Yl-LY..._£8,780,OOO
Reserve
Fund-
Reserve
Liability, of Prop,-: 8,780,000
6,150,000
'
BEY Ell & CO.
:rs,t
i
f
:
Y.
BOSTON 9
10
Post Office Square
HU8f*R°f>650
H!>-297
,
f
Y .
NEW YORK 5
;
(
YY
Stred
6J
WHITEHALL 3-0782
A'2'
,
j.2875
: -
23i
.
V
'
>"G-I0S
PRIVATE WIRE SYSTEM CONNECTING: NEW
YORK, BOSTON
,
• •
PHILADELPHIA. ST. LOUIS, LOS ANGELES
'.
,
:.V>
>
YUhon 1551
\
7
Oakland
-■
San Jo&e
Stockton
■
>
HARTFORD, Enterprise 6011
s
••
PORTLAND, Enterprise 7008
PROVIDENCE, Enterprise 7008
Pf/IP'Y YY- TUcker 3151
Te,et)TcSF 431-'432
CHICAGO
Y
Y^Y->"p
j"
'
San Diego
?Yv vY -y
'
,
-i»r;v
:_i;
Beverly Hills
.J
.
f
.
•
-
••Aggregal^Aiaeetrj: 30th:YYY-?h
Teletvpe LA 533
'
>
.
•
YY
■
■'
■'
Office:
:•>'
Y1
.uiYY_L-:/£223,163,622
General
• '
f oT
1945
THOMAS BAKER HEFFER,
Head
f
Long Beach'*1; 'Santa Ana -iVa' Monterey
Sacramento !-" '' ' Pa&adena T.Y
'•Y*-^ ii>? '■ Reno, Nevada V'. Y vv'J
£23,710,000
f'i'* •'/ V
Montgomery Street
f >Y"/ y '650 South Spring Street YY
./SAN FRANCISCO 20 Y!^:YY;-^'-YYY LOS ANGELES 14
S. LaSalle Street
FRANKLIN 7535
--C
;
YY: 'YY*:
Sept.,
Y '\;Y * CHICAGO 4
Y '■
CaliforniaYY"-'. mpany
Cq
V•->
INCORPOflATiD
' i-.t''
YY INVESTMENT SECURITIES
INCORPORATED
,
that when
stock prices
It also seems unlikely
:two years of*the bull'market and
facilitated the decline
in stock
100:
group:
this trend will be
important factor in restraining
stock yields from return¬
common
five < companies cepted, the.: yiela on highest grade
are outstanding in that their earn¬ .bonds - will t not; vary
materially
ings trends have been weir above from.; its current level of 2.62%'
of
towards
control
much influenced by the argument
that "there is nowhere else to go"
Springfield^ $2..
trend
adverse ef¬
increased govern¬
has continued:*
It
reasonable to suppose that
trend
The. following
the
an
upon
ment
proach of stock yields, to bond
yields had yet to be recognized as
a
potential
danger
signal for
National; —11; New Hampshire/ yields to
93; Providence Washington/- 98, yields.
and
which it
company
the earnings and divi¬
in¬
dustrial companies, not only cur¬
rently but over the course of a
number of years,
as the broad
fect
usual for stocks to yield less than
bonds and in which the close ap¬
their
Aetna, 95; Fire Association, *96;
Franklin, 54; Great American/90;
optimistic. But this
era
utility holding
both
dends of the stocks..of. some
long as the future
an
and
1937
respectively
ment to warrant elaboration. It is
on com*
seemed
'
fell
point out
in
levels
same
and operating company equity se¬
curities is too recent a develop¬
difficult for the investor to accept
a
The following eight companies
not only , have earnings' trends
below the group trend', but their
earnings
to
yielded 3.2%
and 4.4%. The effect of govern¬
ment regulation upon the prices
Federal government bonds and the
almost halving of the yield on
he
137.
suffice
1945
the
at
yields, arises from the
steady decline in bond yields. The
earning's
the
it
Let
here.
that the Dow Jones rail average
*
National Union
Telephone: BArclay
road; earnings, stock prices, and
dividends, have b e e n written
about too often to need comment
Security of New Haven.. In
of Security, its trend* has
been well above the group trend
able. The variation in yield on the
until Yl944,
«jwhen its index fell to issues
composing the average- is
91
compared with 137 for- the
1925-6-7 figures.
very wide and there • is no reason
group, In* 1943, however, ite in¬
to believe that it will not cori^
Not
all
companies, however, dex was 189 compared with1/166
tinue to be so. Consequently, for
show up. as favorably as
the for the group.
Y
the average to yield as little as
In general, it can be said that
group, several showing a down¬
2V2% it will be necessary for.at
ward trend and lower profits in net operating earnings moved up least a third of the issues in the
1944 than 20 years ago.
from the 1925-27 level to a peak
average to sell, to yield 2% or less.
For
example,
the
following in 1929, then declined to the 1932 Theoretically this is not impose
eight companies show earnings depression low, and since then sible but actually it seems to be.
have moved irregularly upward. Even to
get the yield on the Dow
However, ; the variation between Jones industrial average down as
Despite these unfavorable factors,
including the 40% lower premium
rates, their 1944, total net .oper¬
ating profits were 37 % above
BANK
Bell
a
on
government
below bond
1925-27 earnings, as will be noted
in the earnings index which in
157
—
submarine
Total net operating profits com¬
net
underwriting
profits
been
1944
1944
-Y
prise
and
.1^——
of
the
stock
yields. The effect
controls on the
railroads v through ICC and the
consequent
effect
upon
rail¬
effect
gfou^>,
142
1943
the New York "Times" and other
the
j
-
> bond;
yields that they en¬
joyed at: many times in the 1920s,
when stock yields frequently were
and
150
-
-
1941
known companies have been used,
whose stocks are quoted daily in
papers*
166
—
of
its
group index of
150
1942
better
trend,
158
1940
be of interest to
examine the
earnings trend of
stock
fire
companies over the
past 20 years.
Instead, however,
of using aggregate figures of the
300-odd
companies * covered $ by
Best's "Aggregates & Average^,"
now
may
has
trend
group
index
—183
1939
_
that
147
1933
,
$1,693,601,000.
its
.
78
1932
1934
$2,022,583,000 to $3,229,927,000, or
nearly 60%; policyholders' sur¬ '1935
1936
plus, which comprises capital and
1937
surplus, has more than doubled,
1938
having expanded from $815,198,000 to
.
196
„
1930
from
increased
'
5Y'YY'
'
.
Total Net
.
below
<
hitich in relation to stock prices
and dividends and the consequent
highest grade corporate bonds has
been; too much for stock yields td
but with a 144 earning's index keep
up
with.
This .inability
greater than the5100 of 1925-271 throws the bhrdeii of proof on
those who claim; that stock yields
Agricultural,
128; - Continental,
123; Hanover, 123; Home, -112; again will go below highest grade
North YRivef, 123; Phoenix, 117: corporate bond .yields just because
St. Paul, 145, and U. S. Fire, 115. they have done so in the past.
Y When, highest grade corporate
In the case of St.
Paul, it is in¬
bonds yielded 4%% it was not too
teresting to state- that, although
trends
,
from
Total assets have
follows:,
as
'I'YY'YiY'" YYY; - d >■ tj.:YYY?Y; ff-- /"Index of
approximately $1
to $0.60, or 40%,
consequently,
actual
expansion in the dollar
value ,of
risks
written is far
greater than the 22.5% indicated
by
premium
volume
growth.
dropped
In
,
TABLE I
pre¬
mium rate for fire insurance has
1936
.
with
And the use of the dividend
yield
ated
that
overlooked
in
8,1932
Y
large part of the
inability of stock
yields to return to the relationship
1937,. and thereby .portrays thje
long term trend more clearly.
subsequent years their
total net operating profits fluctu¬
22.5%.
or
dividends
JulyY
for
recognized that the heavy hand of
government controls is a factor in
j
Lows
Obviously
once
having reduced
them, to keep them at low leyels.
Immediately then there must be
'
!
'
■'
»
f
.29 March 31,1938
.21 April, 28,1942
reason
the Federal
reduce interest
to
This very factor of government
control must also be given recog-
would reveal the same long term
trend.
^
,:;Y;Y.v%'/;■;.;
'Y./f-
yield
earn¬
100.
panies has risen from $934,000,000
*
>
•
'.37
.
three-year average is $32,845,000
and this amount we designate as
by all stock fire insurance com¬
in
Barron's 50 stocks is the
on
$46,055,000 in 1927. The
Ratio
v
1926 and
-
.
t
v
ing power' of the insurance com¬
panies in the late twenties.
Total net operating profits of
the 21
companies amounted to
$23,770,000 in 1925, $28,711,000 in
long-term investors who require
both
regularity of income ; and
-
'
1.27 Sept. 3,1929 Y
.95 July 18,1933
.76 Nov.. 12,1938
It should be noted that the
fair measure of the normal earn¬
equity growth.
' '
-
Y
comparison and as representing a
attractive in¬
vestment media for conservative
companies
Yield
s
the part of
on
government
rates
and,
the situation.
^(Barron's High Grade Boftds—Barron's 50'Stocks)
ings yield and not theY dividend
yield and consequently presents- a~
somewhat,; differentYpieture than
if the dividend, yield were used.
It does* hpwever, eliminate cer^
tain exaggerations which the divi¬
dend yield produces, such as the
growth renders the stocks of se¬
lected
Bond-Stock
highest
on
grade corporate bonds, is the re¬
sult of consistent and successful
a
efforts
DEXJSEN
By E. A. VAN
and
eminent* bonds
Cnrrent Low Bond Yields
,
^
ManagerY-;
George Street, SYDNEY
LONDON OFFICES:.:.,
29 Threadneedle
'Y'
{
Street, E. C. 2
•■■•>/* • 47" Berkeley "Square;, y/%^
P Agency arrangements- with Banks '
YYry
throughout the U.- S. A. r
;
■:
->
jVolume 163.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number. 4452
The Cost of
(Continued from
costly
procedure
annual group
olds.2 v
as¬
mili¬
or
alliances are/• preparing - for
Hence there- is the -likeli¬
tary
war.
than, dther methods.
this,;the. Army
addition to
In
r
Moreover* it
is almost certain to fail in its
pur-
plans for at least-500,000 Regular pose,;.-No nation has - been spared
hood of armaments races and ten¬
Army troops. and the ^Navy^ for^ war as a result of haying compulr
sion /politically/}/ whichwould/re¬ 550,000 officer^ and men.3
sory military trainings^ in; peacetimb. -No nation has been; spared
quire more and more money'for
Cost of Compulsory
"defense."
r.-.f/,'•/ */
>
'
'
ft.
-
"
•- •
;
•
Training
defeat in, war because
in
peace¬
■
1
Independent military planning.
If, each conscript receives $30 a
time
h4 had
adopted
military
.course
of
action 5 involves month salary or $360 a year:.and training." If the United States had
planning not only against any par¬ if the annual cost of food, cloth-, adopted peacetime conscription in
ticular aggressor but as* the 'United |ng, ..lodging and,/equipment',/is 1920 as was proposed, there is no
the cost reason to believe we would have
States War Department spokes¬ about $1000 per trainee"
men
trainees - would
be been better prepared for war than
jsay; against ;"any combina¬ for ;// 970,000
tion of aggressors,"This is un- $1,319,200,000./3 This/does* not:in¬ European; nations which had it.
There
is
absolutely no reason
^questionably the Course of action clude- the-ippst nf at t least| 120,000
This
"
being recommeiide d
now
-American
Hence
.
pfficer, .trainers." Their ;/ salaries
by
for
/.combined—and
ond to
;
an
none^ahd: unilateral
trol: of -the -atomic .bomb
volves
armaments-
an
is
man
$4000®/tho/.tqtal/cb^
dollars annually.As
Schickels and Everett points^out,
an expenditure "would be
than the total expenditures
$uch
,
more
States continue to surpass all other
for relief by all state and local
/'preparedness." Not
only would this require great eco¬ governments during the 1930's,
nomic resources and huge taxa- would be twice the amount spent
tion, but in a world armed to the ! altogether on the Civilian .Con-
nations
teeth
in
result of
as a
servation Cprps and the National
an arms race
no real security. I ^«th Administration and would
Ultimately the United States could j3® 35 times the total sum spent on
not compete against the rest. of
J^eTafue
Nations, ^orld
Ithere could.be
gage- in
we
were
to
and conquest,
war
en-.
Court, International Labor Office,
thds]an5? all othermternational orgam1
Huge Costs Lead to War^
iThe
to
money
large)
for
pay
military establishments
comes
ed from 1919 to
c0
preventing certain competition;
in
'
% 1.-—Oswald
the
In any event-the
to
.to
/urge
becomes
so
to
go
come
cause
they
Villard,- Annals? of
Press
and
' .
from
dispatch
Washington,'Oct. 24, 1945.
»: 3.—"New york Times/' May 9, 1945, and
of the American
Academy, Sep-
it
to
or
merger
products,
the
day
every
some
tember 1945ft
eral,
State
••
,
*
•
Fiscal
and
»,•
Requirements,
Local,
Kimmel
Fed¬
and
asso¬
ciates/ Brookings Institution, 1945.
5;—Cofaputed
pensation
and
on
basis vfv average Com¬
of
expenses
$4,500 but not
including
any -retirement pay. .;
., ;
6.—:Rainer Schickele and Glenn Everett,
»
"The
to find.
September 1945.
,
,
9 .^-^chidkele and Everett,
; *
•.: 10.—The
Bchickele
ground
study
the
Indirect Costs
,
author
and
material
in
is
Glenn
the
id.
indebted
to
Everett
for
which
appeared
Rainer
back¬
their
in
September,. 1945 Annals of
Academy of Political and
American
Social
Science.
"
prospects,
nounces
rector
be
can
possibilities
elected
verified
1946.
strongly
are
The
that
type
we
of
have
special
rities
Fall
tion
such
though
situation
the
as
been made
foregoing
real
on
profits
growth
with
a
(al¬
period
of
offered
to: investors.
one
of Jan.
usually like
several
we
of these situations We
to get to
the
com¬
pany's officers, meet them, make
Statisticians To
their
we
Discuss 1946 Outlook
from productive labor.-'
Will permit their money or their ! According to the 1940 census, > The Securities and Capital Mar¬
resources to be used for more and • 68% of all 18-year olds were em- kets Division of the New York
more military preparations only if
ployed and abotit 32 % were'sery f Chapter /of/the Ainerican Statis¬
there is a real possibility or threat
ing as apprentices or continuing, tical;Assodatiom announce a din-?
| p£ war,: Consequently-the Gener- their education; Onje' estimateot- ner meeting to be held Tuesday;
als, the Admirals, and other gov- the productive value' of withdraw- Jan.' *8/ at ,6; p. m. at thei Hotel
epiment officials must continu-, ing a man from civilian pursuits Sheraton.'
/
ally frighten the people in
Subject of the meeting,* at which
orderj is $2400 worth of goods and serto get huge armies and navies.
Shelby Cullom Davis will- preside,
J vices at 1939 prices.? The indirect
Sometimes history has recorded
j cost of withdrawing? 970,000: men will; be 'The Gutlook for 1946."
4 actual
^attempts:> on,; the part ; of /a - each year wouldbe abdiit^2i3abil^ Speakers wili-be G1 enn G. Munn,
citation,s leaders, to provoke inter- lion -dollar^.This takes into!ac¬ Paihe, Webber, Jackson & Curtis;
Jerome :Lewine; H. Hentz & Co.;
tional incidents so that v they ? counf the fact that
cold persuade their
people to vote drawn from higher education lose Francis La Farge, Tri-Continental
more money 'for1 ''preparedness."'
a year of more' skilled Work/later Corporation;
Julius
Hirsch.
A
discussion/ will be iod by- William
on.
Size of Postwar Establishment
Hamilton Swartz of Goodbody &
A total estimated cost of a year
.
more
and
as
and
interested
about
plant.
as
capacity,
IF YOU WANT TO SELL
A SECURITY FIND OUT WHAT'S
/
/- 4
'
the
Department
of
J.
was
and
1,
again; elected
Vice-President
1946,
1942;
during the past two years has
advisor to the Army Air
ciated with the corporation since
its formation in 1938 and prior to
that time
with J. & W. Selig¬
' ' /
was
man* & Co. since 1926,
Now Peters & Bryson
ly stated that if
CO.
^as repeated-' of
,
,
we
D. C. — Peters
Bryson, Southern Building, has
been formed
by Samuel Zollicof-
fer Bryson, Jr.5 and William Lillis \
Peters.//Both
were
previously/
partners in
Hall, Peters & Bryson.
Mr. Peters has recently been serv¬
ing in the'tJ. S," Navy.
/
/ '/
.
A. DePinna
Company
$0.60 Convertible Preferred Stock
'
Oass A Stock
Circular
«
'
compulsory military / training
be 4 billion, 187 million- / Member^ of the -Program/Com^
inittee are;; Benjamin Graham,
shall.^eedv;doflars;""^f^'^x ^
have universal
nuhtary-training"»we
would
'
"•
1.:
on
./ ''" ■ /
request,
'/■
.
'
"
'
'
^S^d;} Ev¥n if we assume that cpni
hnw%mnl^ ^
' scripts will.have the same/food:
hL h?
\
and clothing, costs In :ciyiliari; life;
/ tvrfi il d he ff wi dohTii
ge ^, as in the army, these will be more
SSi ^ Um^ than offset by jthe cost of the
fact
the
size
of
the
professional • ^seeap0ns held in ^rve for their
army will probably be determined
/;
:
•
^
independently of whether the na- L vT^ere..will be no point in train;tion
has
compulsory
militarylm2 almost^ million men a;.year:
training.
No • existing proposal > an<J maintaining a reserve, of; 5 to,
suggests that the trainees, will be- ^million meh: unless weapons, for,
,
-
come a
part of the standing armv
or/navy. After training they are
to be returned to civilian life The
War
Department
smany/needs
to
will
have
garrison
....
bases;
and
forts
island
the
on
methods
of
warfare,;;irre-
spective of whether there is
•
com¬
pulsory military training. It will
therefore ask for as large a stand¬
;
ing army
it
get.. Actually,
the War Department
envisages a
as
can
4': force of at least
to
train
scripts
training.
in
the
if
120,000
annual
we
get
officers
youth
to
from
the
six /weeks
to
a, year
^re¬
ilei'/rBoulton,
Baker, Weeks
Harden;/, James Hughes Smith,
Barney & Co.; Lucien Hooper, W.
E; Button
&
Co.; N. Leonard
Jarvis„Hayden, Stone & Co.; Ragnar.Naess, Naess & Cummings;
which
lions of men.
a
vi..
Joseph McMullen; Ralph Rotnem,
can
supply mil¬
These weapons will
One estimate /is
estimate.
billion
dollars ..a
year
re¬
placement cost if we have a cap¬
ital value of equipment of 8 to 12
billion dollars.9 This is a conser¬
Regular Army
unless the War Department is wil¬
ing to weaken the Regular Army vative estimate since it assumes
;;
by detaching them I from /'their that the weapons become obsolete
// regular duty and training.1:
at,the rate of only 10% per year/
•
Specialists In
PACIFIC NORTHWEST
Slade.
-
Reservations, if paid by Jan. 5,
are $2.75; $325 thereafter. Checks
/
should
/
be
sent
to
-
MINING STOCKS
Helen/ Slade,
District
Representative, 400 East
Street, New York 22, N. Y.
47th
O. C. JOHNSON
Tripp & Taber Admit
/. NEW
Richard
Member
BEDFORD, / MASS.
D.
Taber
Milton
and
Standard Stock Exchange
-
PEYTON BLDG., SPOKANE 8. WASH.
I.
partners / with
become out of date quickly As im¬ Pardee are / now
Elliot C. Taber in Tripp & Taber,
provements in fighting iriachiflery/
take place. Consequently/ their rer, 105 William Street. Elliot Taber
has been;; proprietor of the
firm,
placement cost must be included
any
55 LIBERTY STREET, NEW YORK 5, N. Y.
.
weapons /
for.
Herrick,Waddell & Co., Inc.
Harris, Upham & Co.; L4H. Rothchild, L.H.Rothchild & Co.; J. H.
Lewis, J. H. Lewis & Co.; and H;
for I rnobilization./ Thepq-r
fore we, must expect War Departs
ment demands for an arsenal of
m
compulsory
.
quired
con¬
These would have to be
addition
.
.
]not; be time^to manufacture
^weapons for 5 or 6 million, men in
.as
the short time (estimates yary
mainland,
constantly to train its men in
new
••
man
.
ithem are constantly, ready... There
*
ft
,
Gfaham-Ne\yrhan CorpJ, Schroe-
with which Mr. Pardee
was
'the
>
Telephone Riverside 8108
asso¬
ciated/
B.1I.System Teletype BP 184
past
Richard
cashier.-
as
D.
Taber
In
was
with
firm, but for the past four
has been in the U. S. Army.
the
years
0ver-the-Counter Quotation
Services
For 32 Years
•
Stix & Co.
.
•
:
There
have
been
various
esti¬
mates of the number of
if .we adopt
conscripts
compulsory military
training- These estimates range
750,000 to one million men,
depending on what physical qual/.ifications are established.V/The
from
/
-
/
Army and Navy indicate that they'
?
Of
course,
obsolete
•
and
if. weapons ' become,
must
each. year,-.what
who were,
outmoded
,
be
replaced
about ithe. nien
use the new
trained to
weapons?.
.,4
•
,
*
ST.
509
Changes
LOUIS, MO.—Stix & Co.,
Olive /
Street,
retirement,
of
from/the firm and the
tion
same
of
the
firm
the
announce
Charles
business
H.
Stix
continua¬
under " the
•
by Frederick A.
Arnstein,' Edwin R. Waldemer,
"
QUOTATION BUREAU, Inc.
Established 1913
•••
•r/7v''
.
name
Universal military training can¬
not possibly be considered an eco-: Max/' S;/ Muench,
Benjamin
nomical method of gaining secur-ft Frick, Jr„ and Edgar L. Roy.
4
NATIONAL
F.
,
46 Front Street, New
Chicago
^
/
:WASHINGTON,
-
-
as
Mr. Keary: en¬
,
11
&•
policies and procedures. Mr. Keary
Will be in charge of the Buying
Department. ' He has been asso¬
&
products and physical
BEHIND IT.
Secu¬
in
Forces in the formulation of teis
mination and other readjustment
knowing
organization
management's
study
well
their
in
Union
formation
been
acquaintance, tell them why
are
its
tered Government Service in
revolu¬
When
director
a
years, in our opinion is the most
salable merchandise that can be
discover
director of
since
1,
offi¬
of
|iam J. Keary
have
is going to have exceptional earn¬
a
Jan.
an
1927.s * •
It has also announced that Wil-*
r
tionary product; that looks like it
within
of
W. Seligman & Co. since
workouts, etc.). The
company
as
King has been
derwriting
always liked, how¬
some
Vice-Presi¬
corporation, has been
1938, and prior to that
time with its predecessor, the Un¬
is not based upon informa¬
ever,
Executive
President
Mr.
and
cer
/ /
/
4
and
dent of the
cutting—whenever
CREATES BUSINESS.
|
Corporation, 65
York City, an¬
Joseph H. King, di¬
New
that
or some new
potential split-
or even a
^
In addition to the cost of train?
ing the annual class of conscripts
people]men
Broadway,
favorable—you've got a good story,
AND GOOD INFORMATION
ings
8.rrSchickele and Everett, ibid.
,
Union Securities
profit in
a
reorganization,
Economic
Implications of Universal
Military Training," Annals of the Amer¬
ican: .Academy
of
Political
and
Social
Science;; September 1945.
<■ ?7.~Annals
of the American Academy,
•
Union Securities
be¬
Annals
•P 4.—Postwar
Joseph King Pres. of
securities
are not so easy
information
and
"want
Such
along
melon
or
others
you
But whether/there is
such
parrlson
self
strong that
work."
don't
y.
Americaa
Academy of Political
$ocial:,; Science, September 1945.,'
the long run from taxation of/thq ' there is the indirect cost of the
people unless the State assumes joss to the. nation's economy as a
.control over all the nation's re- ' result of the
withdrawal, of; these
sources.
w 4
'v.a
FOOTNOTES
,
the world unless
v*'
v.--i-
2;—-Associated
twith/hilhon
other nations./ Only by more and
more
money
could the United
,v.
'\f.
-—and»^^ expenditure, per,
race
own
.
Pillion men and if the annual
,
of all postwar military, force, including
It inevitably in- a conscript force, would be 5-8
security plans.
..
con-
,
Sales Force.
a
certain - securities that have what is called "sexappeal,
"romance,"- etc.A Whatever the name by which they are
called it all adds
up to one thing—THERE IS A STORY THAT YOU '
]V7ANT TO TELL TO OTHERS. When you find this type of situation,
you. sell yourself first, then youi <8>———
—
/
tablishment numbers aboutone
-
,•
,
A
universal military training.
This is the ? most costly
.
re¬
;
DUTTON:
are
sec-
air force
.
could have
we
Will Stimulate
[ ///There
up
than all other navies in the world
maintenance
JOHN
Example of the/Type of "Special Situation^ That
prospect, on
planners.
navy larger
a.
to believe that
By
A11
would - cost "at mained, at peace or,kept the world
least an additional $540,000,Q00.5 4 ' at peace, by virtue of our use of
If-the professional; military- es-/' compulsory military training.10
<"•'' *
and
military
plans
Securities Salesman's Corner
lity^ for the United States.'It is by
of 1,200,000 18-year-. | far - more costly and less efficient
expect 9/0.000 trainees put of^an
because >. it
that other nations
sumes
Compulsory Military Training
na»*e
23
York 4, N. Y.
.
San Francisco
24
THE
COMMERCIAL
f fft
franc. Belgium is
namely,
member
controls in
exercise
may
a
manner
thetic
the
key
change
stood
view, of
influence
to
the
In
effect
the
.
bloc system made the
much
is
of
sterling
problem/of
convertibility less difficult/ sinte
!
discussion
a
forced
delay
This crisis
de¬
was
cent
Montreal and Toronto Stock
Exchanges,
at net New
or
York Prices.
►.'..'s. V-Tv'".!'
•
•
^ vi*
-i:
-'•//
i
"
Direct Private Wires to
PoMiNioT! Securities
6rpoeatioti
.1
.
-n.*
/ BeU
,
"A-iL-v■. --J-*.-,
System Teletype NT
;
a
pose
foreign
that
4
is
'y.y
;«j7
•;
'' ' $
this; position will
developments, and,
exceedingly
This
■
•'
!
re¬
fre¬
"free"
perhaps:
rumor
restored
on
the
•
There
ment
on
the
based
moderate
a
recent
favorable
the
effect
With
regard to future
pects there is still
contrary
no
increased
The
a
relatively long period be¬
that
import poten¬ J dissolution of the
a
the
United»Such
willing to sell to third
on
<
pros¬
base, i.e.,
to
expansion in the de¬
sterling which in effect
an
mand for
means
increase in the volume
an
of British
expofts.
How large an expansion will be
necessary
cannot
be, determined
with any accuracy at present, but
there is little doubt that, given
commitments
the factor of a
high import demand,
which in view of the known lack of
materials in the United
be expected to con¬
may
tinue to rise, in company with ex¬
ports,1
as
reduced income from over¬
as
well
such other fac¬
as
seas/ and alterations in/ the rela¬
tionship between domestic and
foreign prices, the increase in ex¬
ports will have to be substantial.
pamphlet,
request
Whether British productive facili¬
Street, New York 5
BeU System Teletype NY 1-920
the
supply
can
the
to- meet
other income from abroad is not
forthcoming, controls
Taylor, Deale
STOCKS
Industrials
t
—
Banks
—
64 WALL
Mines
&
tained
Company
or
further
sterling attempted
stimulate
STREET, NEV YORK 5
CHARLES KING & CO.
Members,
Tnrnvtn
Stock
Exctianoe
WHitehall 4-8980
Direct
private
wire
to
Tyronto
y;
office
tion
on
and
canadian securities \
in
the
the
Kingdom
Government
•
Provincial
♦
be re¬
devaluation
as a,
of
device to
exports. / Devaluation,
tion would act
61 Broadway, New York 6. N. Y.
may
however, is a two-edged instru¬
ment, and in the absence of other
developments will increase the
sterling cost of imports. /:■/•/
/'/
Presumably, therefore, devalua¬
WHitehall 3 -1874
Bought-i-Sold-—Quoted
,
control their
to
own
pool
exchange
can
scarcely
be ;
give the right to buy these cur¬
rencies from the pool in unlim- /
present members of
exclusive of the
had a total dol¬
lar surplus in their direct mer-;
chandise trade with the United,
States
of approximately
$207,- .
000,000,2 If India, ihcludhig Bur¬
ma, and British Malaya ate omit¬
ted from the group, however, the
dollar surplus would become a
dollar deficit totaling $79,500,000.
The United Kingdom carried the
largest dollar deficit on trade ac¬
count of aqy Of the sterling coun¬
tries, nearly $327,000,000 in 1937.
When this; sum is added to the
deficit already given, the
total
dollar deficit would be $406,500,C00.3
This computation ignores <
the important service items, par¬
ticularly s h i p p i n g, which un¬
doubtedly reduced the dollar def¬
icit ; appreciably.; /Moreover,
it
perhaps overemphasizes the area
as such, and thereby fails to bring
out the real importance of mul¬
In 1937 the
the sterling area,
United Kingdom/
quantities
goal while
also
providing
the
types
and
qualities desired at competitive
prices is a question which British
industry alone can answer.
If convertibility of the pound tilateral trade, both to the area as
sterling is restored, but the neces¬ a whole and to the United; King¬
sary
expansion
in
export / and dom in particular.
incorporated
CANADIAN
forced
be
trade.
The
alternative of con¬ ited amounts. If the amount which;
verting sterling and/ thereby re¬ could be so purchased were Um^ i
establishing multilateral clearing ited,/ there would -be little ad- ;
rests upon the same fundamental vantage in such an arrangement.
per¬
Wood, Gundy & Co.
14 Wall
~
a
system would cause tremendous
dislocations in the direction of
needed
NY-1-1045
area.
that
dollar/ expenditures.-. /This action
would involve a perpetuation of
ties
RECTOR 2-7231
action would mean
an
in the absence of convertible ster-
sterling basis. In carried; over to peacetime; the;
the end, however, the final,Result basic conditions are vastly, differWill be the same;
sterling ac¬ ent, Participants in such an arquired will have to be liquidated rangement would normally expect
by ? expenditures' irv the United that acceptance of any obligation
Kingdom. Unquestionably such a to sell / various currencies/ would ;
TWO WALL STREET
NEW YORK 5, N. Y.
sterling
^
of
| ling the various countries would
countries
Canadian Securities
on
•
may also be con¬
much must be done
that
tors
contained in
don
argument
denied, but it
countries
Year-End Valuations of
are
•
and sell
-
in internals.
of which is available
of the London exchange
it possible to buy
made
than they sold there.
Thus, the- dollar exchange pool ■
in existence during the war for
the purpose of concentrating and
conserving resources, could • be
eliminated without' requiring the /
Kingdom
copy
"
the :
freely. As a matter of
fact, many countries undoubtedly
bought more dollars throiigh Lon¬
many raw
These appraisals
and
tries in excess of normal meeds import controls in. order. to .as-;
Will hatfe to be expended on in¬ sume that a shortage; of exchange /
fer e ased
purchases of British would not develop at a time when;
goods. -The- extent to which op¬ particularly important i m ports /
tional " purchases may be made were needed.
The wartime 'advantages of an.
Will depend upon the number of
CANADIAN STOCKS
:
sterling
were
If there is a continuation of ex-
still further clarified,
however,
some
caution is indicated
In
taking
in
reserves
fchange control in
the
United
Kingdom, the,result will be that
Sterling acquired by other coun
ternal section of the market.
Until the exchange situation is
-
held
they;
received,
because their
so
breadth
no
Kingdom.
anticipate any reversal of the
recent strong trend in the ex¬
I
market
,
-they 'had
market
tials; reach
gains
reason
dollars
largely
over
com¬
of the
in
already
the
fore their realized
sufficient; to
was
system, is another
question. -Although members ofj
is
others
tended
large turnover. French buy¬
de-*
which
that
:
exchange-pool
the sterling bloc for the most part v
sold in the London market the ?
did
be
activity in
and registered strong
found
is
The future of the
that many markets have
high po¬
tential import- capacities cannot
exces-r
sistent selling from London.
.
INCORPORATED
;/:'V /,;;\ /:
United Kingdom.
This
war.
I^ovinciaX a^
was
overcome
■
A. E. AMES & CO.
-
more,
and finally that the re¬
mainder are in little if
any better
financial
position
than
is
the
as
ing supplemented the local
a
CORPORATION
high level
it
cari% take
term investment
Justified
ta its
nimble turn and explores
possibilities in the opposite sense.
\
Turning to the market for the
past week there was increased
reimposed.
The Exchange Pool
being supplied by competitors to
the point where it
and free funds eased
slightly to 9%%. C.P.R. Common
in¬
be further devalued.
If the spec¬
ulative mind meets a
brick? wall
in one direction
it usually makes
MUNICIPAL
I
or
,
overcome,
in
-
mand
has
dollar,
of
being
old parity, will
PROVINCIAL
cal/fashion
internals,
be
as
tained
but
many /countries domestic competi¬
tion is too strong to be
nicipals was, also restricted for
sathe - reason- Some interest
was displayed in the new Alberta
scrip which looks quite attractive
narrow.
possibility
given rise to the latest
that the Canadian
stead
GOVERNMENT
before
turnover/in>
out; the
market from the Canadian
dollar
'
same
the
exchange gamble.
it is logical to
sup¬
quently* pointed
SSJ':
expected
is, of course,
the assumption that
solely for short
lightened in accordance with
cent
CANADIAN BONDS
be .confidently,
can
grade
externals.
Prices,
^specially in the Nationals section,
moved higher i with the/ demand
Car
outstriping- the supply. The
has proved by no means
nevertheless many
positions have been
taken,
Conseauentlv
consump¬
in the prewar
nigh
unprofitable,
is
1-702-3
of
be expected that va-1
rious wartime controls will; be re¬
arrangement/ which did not exist
evidence of the lack of supply of
vestment
New York 5, N.Y,
.
cur¬
dollar, to its
parity, will' now reconsider
situation. Although: such in¬
the
standards
may
It. has been argued that other
markets will be open, but when
the world is examined in a criti¬
are not placed on
imports. Nothing occurred during
the war greatly to reduce British
dependence on oversea producers
It would appear
therefore that
those speculative investors
who
touhted oh the
'restoration',at4his
time of the Canadian
old
not
accept
alternative the absorption of
these surpluses of
primary prod¬
sive restrictions
was
exchange of the key
are
ucts.
upon
rencies.
Buffalo,
Toronto and Montreal
; 40 CxchangePlace,
As it
they
in
nonconvertible
sterling,
neither are they ready to
logical* to
anticipate,
therefore,
a \ large
In short, the British market still
measure
of
stability wilj. be
will" absorb tremendous quantities
given to the vitally important in¬
of imported raw materials and
itial stage of the Bretton
Woods
food.JLn at least three instances
plan by adherence to the
existing
rates of
'
•
dollar.
that
of
bf
as an
expectation
part from its frequently
expressed
deiermination to retain the 90
the
tion, it
prevailed
the 4 dollar pound. There is
con¬
on
achieved
indicates
continue at the
sequently now less outside pres¬
sure topause the Dominion to
de¬
Stock orders executed
balance
able
sterling balances, not only
during the immediate transitions*
period but over the long run wil.
surmounted and
Canada's
exchange
position
is
clarified, by the maintenance of
and internal bonds.
1931. In brief,
equilibrium in
payments is not
without impairing the
restoration
interested in continuing to be paid
the
classes of Canadian external
if
the
national
that the supply of sterling; which
will be offered/ exclusive of
any
capital payments on account of
MARKETS maintained in all
after the British depar¬
ture from gold in
items./ The evidence avail¬
It
different
valuation of the pound.
STOCKS
BONDS
Occurred
dinarily greater than, or at least
approximately equal to - the sup¬
ply* being made available through
noncapital transactions.
ex¬
automatic
an
for
gold. In addition,
the demand for
sterling was or¬
tlevel for sterling in relation to
;the U. S. .dollar which would
have
devalutions; elsewhere, somewhat
the same process may follow as ;
con¬
outlets
such
British banks and did not involve
the movement of
concerning
the establishment of
market
narily meant the carrying out of
a
clearing transaction- between
under¬
the
countries will
payments between members ordi¬
sterling—
It
no provision exists to '
prevent competitive1 and parallel
surpluses of primary prod¬
ucts, they are vitally interested in
preserving their shares of the
most important single market for
.
prewar
seek
in would be the
welfare.: If
their
to
come
' would
which
imports
most essential to the national
ones
commitments have been
of these
tinue
the
continue to
or eliminated.
Since it may be presumed, that
•
delay transfers of funds in settle¬
in arriving at a decision to
de¬
value the franc was due to pro¬
longed
-
sterling
diminished, because annual
most
ment of commitments
sympa¬
Canadian
problem.
that
its
on
for
drastically reduced
which will
payments for currgit
transactions or which will unduly
the
requirements
interest
but
,
portant in
•the
these
restrict"
From tHe Canadian, angle, the
weakness of the French franc
had been by no means unim¬
CANADIAN SECURITIES
-
have
movements/
decision, reluctantly devalued the
following the course France would have preferred,
tobuild ■ the national^
the rate, rather normal situation to dictate
permit the present ab- level of .the exchange.
to
Sterling Area
...
Canada, South Africa, and India' that
no
,
economy to meet
than
/~t
r*\
necessary to regulate inter¬
national capital
France,
quick
a
I.
1
as are
Speculative enthusiasm usually runs to extremes. For the past
few years the Canadian dollar has been "talked"
back to parity, but
the solid realities of the situation have indicated no
change for the
immediate future, Bretton Woods is now an established
fact.
under pressure to make
Thursday,^January 3/1946
;U Continued from page 7)
ber may - "exercise such controls
WILLIAMS
By BRUCE
FINANCIAL CHRONICLE
The Future of the
Canadian Securities
»
&
as a
further restric¬
volume
case,
there
of
is
of
imports,
the
no
United
assurance
There is little
question that the
will lose subclear¬
ing system is not reinstalled. For
many years,
trade which - never
touched the United Kingdom was
financed by meaqs of the sterling
bill, with the result that commis¬
United
the
London
sterling
-a
The
bill
•.>
1
But not to the same degree.
,
tent
into
that
imported
flnish-id
volume
of
raw
To the ex-
materials
enter
the increase in the
imports will be at this ratio.
exports
:
jmportant South African gold trade
notf"included
is
of
trade
specialist.
But the ;;;
cannot regain its
the
thece
in
United
surplus
dollar
figures.,;
Kingdom
would
If
is
become
the
added,,
a.
dollar
'
i
,
sions and interest were earned by
the
Municipal V Corporate
Kingdom
stantially if, a multilateral
deficit
area
*
and
as
of
a
$>120,000,000
for
the
whole.
Exclusive
British
oi
the trade of India,
Malaya.
sterling
;
•,/'/;•■
Burma,
Zv/
Volume 163J; Number
THE COMMERCIAL &
'4452
prestige and importance in trade
if tne
currency on; which;: it" .is
based
is
inconvertible, '
or
pos¬
sessed of restricted freedom.
There is nothing to
Kingdom should
stand
ready to liquidate them, meaning
convert
into
other curren¬
indicate,
such
liquidation
carried tnrough
by} drawing
many
were
the
on
remaining oversea invest¬
the full;: the British po¬
sition would not be any better
since the resultant reduction in in*
ments to
These attitudes
prevent any
0: the independent
them
cies.
'
,
United.
readily
are
.un¬
countries how
derstood when it is noted..that at
sterling area from
Withdrawing to the, extent of re¬
using to turn over gross dollar
present the balances are. equal to
vestment
the total of merchandise exports
from the United States between
tate increased exports if
ard of living were to
1934 and the end of 1933,
tained.
within
the
income
to
Actually;
the
exchange pooh
only, a few
however,
countries would be
affected, since
most of the
independent countries
before the war were net
buyers
of dollars in
London, or were in
approximate balance.
British In-
Never-;
theless, both attitudes are based
on
misconceptions of the British
position, and many of the argu¬
which have
ments
been
justify these attitudes
Used
to
Unreal*;
are
istic.
Malaya> Ceylon, and British
Examining the first contention,
West Africa were the
only sizable the facts indicate that these debts
dollar-surplus countries, and the give the United Kingdom no great¬
currency
and
trade
position of
Malaya and West Africa are such
that it would be difficult to
visual¬
ize the drastic
change which
break, with/the
market would involve;/
,
;
any
London-exchange
Moreover; both
are
v
v
undeveloped
colonial territories in which Brit¬
ish
companies»are '
Exceedingly
strong, • All - ties - are ■ With the
United Kingdom.
India and Cey¬
lon, however, are in somewhat
different situations.
There has
been a gradual transfer of own¬
ership of businesses from British
to local hands in addition- to
debt
repatriation
d
u r
Therefore, the-
i n
g' the '* "War;
need
for
sterling
with
er
bargaining
wise
than it other¬
power
held.
Certainly, during the
immediately before the
war, continued access to the Brit*
decade
ish market was the principal fac¬
tor; involved in trade negotiations,
and
concessions
granted to
were
the United
Kingdom whenever it
appeared that only by doing so
could
the
share
the / British
of
terially^reduced • and !mSy - be
still
{further cut. Tni:the last
analysis,
hovvever, India is the only country
which might- benefit 'from discon¬
tinuing sales .^exchange to the
It
must be
remembered,' how-
ver, that India's strong financial
sition is a recent
and
development
that
many
Which ; it Is
now
of
the problems
Encountering
are
shift i from a
however, the
same
interested in be¬
able to convert export
pro¬
ceeds into other currencies
to the
extent
necessary to purchase
modities previously
com¬
unobtainable.
crease in output, or; a reduction
in the national standard of living,
which; for the United Kingdom
would
mean
a
curtailment of im¬
ports.
Such a policy would cer¬
tainly not be conducive to world
prosperity. It is immaterial to the
United Kingdom whether the nec¬
increase in exports pre*
viously considered takes place in
the trade with the countries hav¬
essary
ing
the
fraction of the smaller amount is
available at present in gold and
?£
tne
I^add^is ; also increased
final result would be
that ex¬
ports to other countries would
be
curtailed.
The
exchange which currently
accrues
be spent only once:
to the extent that there
can
therefore,
1
a F^anSe io the last recipient
^ W exchange, there will be a
*
shift In: the direction
but not the
amount
of
trade.
An
Indian
_
oxapiple, will be
sub¬
or
Aus*
stituted for, say, a British
tralian buyer. ,-The
implications
of this
development, however,- go
even, deeper.
Not only will
the
direction
but
character of
altered,
-
also
our
the product
export trade be
with, adverse
effects
on
many industries. It will be many
.years before Indian
demand will
assume the same
character as the
prewar demand
from the United
Kingdom.
The Sterling
Balances
.In addition, to the
two; problems
of
sterling convertibility and the
exchange pool, / there is ■ the re¬
lated, yet somewhat distinct,
ques¬
tion of the
sterling balances. To
many individuals these balances
,
contain vast
possibilities for busi¬
ness
and trade
expansion. Much
has been made of
them, both in
the United States and in the
United
Kingdom,
ment
of
for
British
time
as
an
effective
instru¬
the
postwar promotion
exports.
At the same
it has been argued
that the
a
writers
conclusions
have
stability," Accordingly, "members
"The
of
shall withdraw restrictions
omy ."5
This
document
has
received
amount
dividends
//Thus,
interest
as
or
investment holdings.
the so-called sterlingon
balance problem breaks down .in¬
to
series
a
problems.
formity
of
sterling-balance
Although
uni¬
some
of
settlement, must be
maintained, the! situation vis-a-vis
various holders differs so
widely
each case. must be
judged
and, settled separately. With one
that
two
or
outstanding exceptions it
likely that arrangements
to all parties con¬
cerned can be made by
way of
settlement, and that the terms
appears
trade
men
but
by the opposition as well.
How far this attitude has "spread
is
as
of
leads one to suspect
that this view will be influential.
Carrying this philosophy to its
extreme has led to the suggestion
strains.4/; !
as
/
•
disequilibrating
Living
The
phrase "standard of living"
is at best ambiguous. It has been
widely used to mean many things
and with the addition of qualify¬
ing adjectives, has been applied to
widely different conditions. For
a
accurate;phrase
more
it may be used here to denote the
consumption habits of the British
people. To them it has meant in
the past the ability to import
,
foods and
raw,
materials.
It
has
been
gradually raised over the
years by the ability to sell goods
end services abroad. Willingness
to invest ,and wait for the returns
capital enabled .further addi¬
on
tions to the capacity to import.
/
The British economic problem
as.
stands
it
today; is
one
of find¬
ing ways to prevent the national
standard from turning downward
until it reaches
level. There
a
new
are some
are
prepared to follow
regarding full
em¬
and lower
premises
which" they are
based do not effectively support
the proposition* Thus, the familiar
argument that sterling should be
protected because/ it will be too
upon
weak to be
vestments still held could be sold
at
only
part of
a
value;
(2)
value
their potential
many are of dubious
although
commonly
con¬
sidered at face value in estimates
of
oversea
stantial
investments; (3)
a
business
sub¬
small
segment represent
for which there
concerns
ready buyers at reasonable
prices or which cannot be sold
are no
without
considerable
and cost; and
(4)
difficulty
in sub¬
some are
sidiaries arid Affiliated
enterprise!
deriving part of their value from
these connections.
Moreover, in some instances
liquidation of British investment
holdings has been slowed down
halted at thebehest of the
or
coun¬
try within ,y^nich the investment
assets
the
are
located. In fact most of
held by
countries which have already re¬
patriated /virtually ; their entire
outstanding sterling debt and part
sterling balances
are
of the business shares.
Since the
greater part of the securities still
held by British investors are,ex¬
pressed in sterling, there is some
question whether they could be
sold in any quantity outside the
sterling area. In any event the
forced sale value of the remaining
British
oversea
investments prob-
bly would not total more than
£ 1,500,000,000 or 50% of the debt
claims outstanding at the end of
a
1944.
Some observers
the
idea
could be
nancial
that / if
have
these
conveyed
balances
liquidated the British fi¬
position. would
be
assertion is correct.
If,
as
so
be
added
industrial
of the creditors to absorb
inclined to have
few
and
mentators
tionists "
ures
be
prominent
many
commercial
have
become
taken
to
com¬
"insula-
advocating .that
meas¬
prevent
the
spread of depressive economic in¬
fluences, and that those countries
ment'do not conflict with
Moreover, "the sterling area is
altogether too loosely • knit-*-even
thereafter
! In support of their position: that
instability in the United States
world
an
adverse force in the
economy,
/an
.
increasing
directives
There
of
economic
too
is
It
of
For
a
discussion of
settlement
see
the various means
Sterling
Britain's External Debt,
Balances
op. cit.
and
,
to
restore'
pay* v
the
is
impression /
Agree¬
common
a, ster-
ling-bloc, system similar to that!
/,/,!
(Continued
26)
on page
/
FINANCIAL NOTICE
warfare.
much
political and
independence between
economic
members of the
area
subservience
SOUTHERN
policy."6 The
tem, therefore,
as an
The Atlanta
to
to allow such
is envisaged not
as a
end which is the
an
Charlotte
and
You
-•
STOCK:
hereby notified that:
are
J
;v
*
^
means
protection
v:*i
?
'■
L,
!
■
' '
'
V.
ft/"
,
1
,
'' 'r-VV|"
"/T/v//7//. V /
Stamped
of the British standard of,
Line
Air
Company's
CAPITAL
,.T V
COMPANY
..
Railway
any
And in itself but
RAILWAY
To the holders pf
centralized
sterling-area sys¬
to
.Wlthreference
yv
Stock
to the
15,719 sharp# of
ft Guaranteed Capital Stock of The?
living.
Since/this is:the dominating con¬
the
sideration in British economic pol-
Company
Stamped
isy, the interest of other countries
sell. to
is in its realization
price of $250
Railway Company at a
per share, Southern Railway
herewith elects to purchase the
tive means.
by nonrestric"
'
/
The Bretton Woods
,
9
Atlanta
Agreements,
and
Charlotte
Air
with
the
Line
"
Railway
to '
agreement
Southern
Company
same
Sterling Area
March
on
1,
1946,
if /they
Holders,
at said price,
/
desire;•/ may obtain
so
pre-payment of said purchase price at any¬
time between this date, December 28, I94G,
and
1,
the close of business
on
Friday, March
l»46v« Such'Stock should be presented
the office of Southern Railway Com- 1
at
resent
pany's
gram
porated,
a part of the world
pro¬
for establishment of an eco¬
nomic
environment within
the
elimination
of
which
foreign-ex¬
restrictions. / In
change
keeping
with these aims members are
en¬
joined
en-
article VIII
by
from
gaging -in..or permitting
discrimi¬
natory currency arrangements or
multiple currency practices ex¬
cept as authorized under
the
Agreement and approved by the
riod.
Section 4 of this
dicates that for 5
tices
proval
the
by
members
years
Allele in¬
these^ prac¬
without
Fund, but
continue
may
are
admonished
ap¬
the
that
they shall* have "continuous re*
gard
in
ments with other members a s will
facilitate
payments
of exchange
international
and the maintenance
New
of
the
gether
Sir William
'Beveridge in
in a Free
J.
I,
Paul.
"The Sterling Area—Its
Morgan
&
Co.
Incor¬
thereon
March
on
;// // /.
1946.
-/
"//'/'//'
In accordance with the Agreement dated
June
1914;
80,
Line
shall
be
between
Southern
payable
after March
!
Charlotte
dividend W
such stock from and
on
2, 1946.
//•////
n.
Unstamped Stock-:
With
the
Railway
and The Atlanta and
Railway Company, no
Company
Air
reference
the
to
Stock
close of business
the same
at
of
1,281
'>
/
shares
of
'
Atlanta and
Charlotte Air Line Railway Company not
stamped
with
the
agreement
to
sell.
Southern Railway Company herewith oifer3
to; purohase the same at any time between
this
date,
December 28,
1945, and
the
Capital
on
price
The
Friday, March 1, 1944>,
of $250 per share, to-
gether with the semi-annual dividend of
$4.50 p®f share, normally payable thereoa \
on March' 1, 1946. •
Holders of such Stock should present the
the
at
office
of
Southern
Railway
Company's Agent, J. P. Morgan & Co. ,/.'
Incorporated,
No.
23 Wall Street, New
York 8; New York, against payment there--"
for of said sum of $254.50per share.
This /offer
as
to; the
Unstamped
/ z;|
S'twck/;;
expires at the close of business on Friday,
March 1, 1946.
Certificates
The
stamped
must
be
for
all
Stock,
both
and
unstamped,
so
presented,
duly endorsed in blank with the
signature properly witnessed and guar¬
anteed
by
a
Bank or Trust Company
having
an
office
or
correspondent
in the
City of New York, or by a firm having
membership on the New York Stock Ex¬
change or in the New York Curb Exchange
Securities Clearing Corporation, with stock
transfer
of
6d
each
tax
stamps
Federal and
share.
at the rate
New York State for
affixed
Certificates
surrendered
in
decedents, ex¬
fiduciaries must
be
accompanied
by proper evidence
of
authority
necessary • to - complete
the;
the
name
ecutors,
of
corporations,
trustees or other
■transfer..
'
SOUTHERN
-T
RAILWAY
./
COMPANY
By-John B. Hw*-v
Vice-Presidcnf.
Society, pp. 33*36, 219-241.
"Bareau,
P.
No. 23"/Wall Street, New York
York, against payment therefor
said sum of $250 per share, to--"
with the semi-annual dividend of
$4.50 per share payable
1
»For example,
Agent,
8,
same
This article does not mean, how¬
his recent book Full Employment
*
able
//toTend itself to the centralized
commercial and financial arrange¬
these objectives.
is
it
ments.
under present wartime conditions
their foreign-exchange
in agreement follow similar
pol¬ policies to the purposes of the
icies of output and economic sta¬ Fund; and, as soon as conditions
bility through regional arrange¬ permit, they shall take all possi¬
measures
to
develop such
ments to assure the realization of ble
has been
account, unless during
transition / period or shortly
proper repository for other coun¬
tries* reserves."
Fund,
of confidence explains
years
chronic deficit ;
a
current
on
that the terms of the Fund
why British writers are, now em* ever, that the area must be, imme*;
phasizing the importance of world diately dissolved, since article:
efforts toward the promotion of XIV permits the maintenance and
domestic
full
employment and adaptation of restrictions on pay¬
ments during the transitional pe¬
economic
stability".
During the
business
with
.
ity and the avoidance of competi¬
tive exchange depreciation. More¬
over, it is designed to assist in
last
after, consultation
the
as
the promotion of exchange stabil¬
This lack
an
as
member,
international standard and
effi¬
the goods.
;
this will oper¬
authorization to any
equilibrium to the balance; of
ciency if British goods are to com¬
pete effectively in world markets,
British industrialists apparently
have every confidence that in
terms of physical output the coun¬
try can expand to a point where
the supply of goods will be suf¬
ficient to liquidate the sterling
b a 1 a nc e s
and
be
exchanged
against imports. There is less con*;
fidence
in
the
willingness
or
power
•
scarce
competition of the free
and open market is not the best
way to advertise its virtues as an
good foundation for the industrial multilateralism may operate suc¬
greatness of the United Kingdom, cessfully.
The purposes as set
and there is little reason to be¬ forth in the Agreement are too
lieve
that
the
nation
can
do welL known to require repeating
without either .and maintain its here, but it may be noted that the
standard of living. To these must Fund has as a specific objective
im¬
mensely improved. Up to a point
this
.
.
is formally de¬
currency
the
one involving the
of full International Monetary Fund, rep*
employment,
,
Low-cost food, and raw mate¬
rials have in the past provided a
now
a
clared to be
will attract others to its standard:
To parade sterling's inability to
terial, through
,.// /
Such a suggestion ignores sev¬
eral facts: <1) Many of the in*
is, however, one point well worth
considering. The Fund Agreement
provides (article VII, section 3b)
/
the Fund, temporarily to impose
limitations oh/the freedom-of-ex*/
change operations in that cur* 1
rency. But sterling has never been
suggested; as a! currency which /
might become scarce./ In fact, the//
general impression has been that
sterling may tend to be in surplus
supply.. To put the idea in another
way, the United Kingdom will be
ment should carry
investments.
with/.respect to the Fund
subsequent to the •; transition, period will depend upon many fac¬
tors, about which at present only
assumptions can. be made. There
by this school of thought and has
reached the conclusion that the
who believe
program
:
dom
ate
particularly the
a
unduly encumber
resources of the
!'//;-/
The position of the United King-
Fund."
issue of The Banker, has examined
some of the arguments advanced
tional resources, human and ma¬
is
not
their access to the
that if
sometimes
It
reserves.
restrictions, to.settle their
balance of payments in a manner
ployment accept membership.
Paul Bareau, writing in a recent
argued that the British Govern-
dollar
of such
stand the
'
The Standard of
want of
tries which
similar policies
as
which will
yet unknown, but the weight
evidence
as
...
they are satisfied that**'
they will be able, in the absence
been
subjected-to/"the full
rigours and perils of a multilateral
convertibility" loses fotce when
analyzed. As Bareau points out,
neither to burden "a weak
currency is not one that
create
nor
scon
repeatedly referred to with ap¬
proval in the House of Commons,
not only by Government spokes¬
Bretton Woods and
.
,
be
the
United States in the World Econ¬
that partial support can be pro¬
vided by fuller utilization of na¬
through further
The idea that liquidation of
the liquidation of British-held over*
exchange pool would, result in an sea
increase in total
exports from the
United States
cannoibe supported
the facts. True,
exports to cer¬
tain specific
areas, notably India,
might rise, but-unless the
supply
of dollars
moving into the stream
there would
long-term funded debt and the
a
bargaining
as
be main¬
cited
British
of
number
25
vested or which might be. paid that the
sterling area be continued
should/ theybe consolidated into: as it is today And that other.coun*
will be such
additional amounts from the Unit¬
ed Kingdom. Is this
requirement;
the stand¬
between what Js now paid in in¬
terest on the securities in which
these sterling balances are in¬
repayment the holders of
sterling balances will have to buy
secure
;
ing
Indeed
necessi¬
net loss because of the difference
satisfactory
sterling claims or with
results of the
third-party countries.
;
/1
/
debtor to a creditor
position: The
Complete and immediate con¬
surplus oh current.' account"was
version of all the debts is as"much
necessary,before;thE war^tomcet
an impossibility as their!
liquida¬
fixed- i n t e test
and / dividend
tion through British exports
^with¬
charges, and therefore did / hot
in E short time.
Jt would require
constitute a problem J 5
NBw; with $12,000,000,000 to
$16,000,000,000
this need
reduced, India no longer
to convert if all holders took ad¬
stands in the position of
requir¬
vantage of the opportunity, and it
ing sterling to the saipe
degree; is improbable that more than a
and therefore is
the
income: would
market be preserved. //////
There is considerable validity
in the argument that in order, to
which to meet interest end power? Debt payment obviously
dividend payments has been ma- jgan only be made through an in¬
I
CHRONICLE
FINANCIAL
New York. N. Y.
THE COMMERCIAL & FINANCIAL CHRONICLE
26
provide that both parties will hold
The Future of the
national economic matters is found
(Continued from page 25)
operated before the war.
which
This
possibility
that
the
therefore
with
does
United
run
these
not
as
a
so
ward
much in their attitude to¬
the Bretton Woods Agree¬
ments as in their
can
assumptions
re¬
garding the chances for success of
the measures which must accom¬
deficit
regular
a
countries
not
mean
Kingdom
Sterling Area
group
without
encountering difficulty.
Any balances accumulated by the
independent members would V be
however,
subject to withdrawal
wide
for
conversion,
and the end ef¬
be substantially the
though the United King¬
dom had been called upon to liq¬
uidate the deficit annually.
fects
would
those
same
as
cerning
The
been
indicates
in
States
con¬
as
has
parliamentary debate on the sub¬
ject, the closest approximation to
has
Woods
Bretton
on
statement
Government
formal
a
own
cannot
way,
Agreements With Nonsterling
Countries
the
been
"If
,
we
have to choose between
managed by Currency Boards,
inasmuch as any increase in their
sterling assets is subject to con¬
version if a resident of the
colony
wishes to transfer funds or make
purchases elsewhere.
.
There is ho intent to imply here
that funds will not be left in Lon¬
money-market
investment, but the lowering of
debt
.obligations
continuous
will
deter
accumulation
any
of * such
funds.
Moreover, domestic eco¬
development in many of
sterling area, countries will
nomic
the
create
wider market for these
a
capital assets at home.
,
At present it would be difficult
to
characterize;
statement
sensus
of
any singjet British
reflecting the con¬ velop- our''policy rso "that others
opinion on the Interna¬ will be willing to cooperate with
tional Monetary Fund. From what
has been said,
however, it
re¬
step
The specific, feature of
Agreement on which
hope is being placed is the
provision
for
and
members
constant
between
expressed
that
represent
an
sterling
area
the .terms
these
agreements
extension;''of
and
of
the
contrary to
International
are
the
Monetary Fund Agreement. Actu¬
ally, in a general sense, they are
neither. There is, in fact, a con¬
erences
to them
"trade agree¬
as
ties during the various periods to
which they respectively apply, but
war
commercial
ments
ful pursuit of internal
is to reserve
our
full
and
not
agree¬
currency
only
as
provides that the"
rangements. Now I - think it is
doubtful Whether in fact the Final
Act is decisive on this point, but
tilateral
involved.
also
system
.
tendency
a
.
There
;
to
transitional period as
consider that during
there is another and
is
faith.
the
regard
It is
Under
wider
issue
issue of
an
good
the
Article
*
VII
vital, and to Mutual Aid Agreement
of
.
;
.
we
period
agreed to work for the elimination
"each member country is to make
of all forms of discrimination in
international commerce. The only
a
this
gradual approach, at
its
own
a
pace
choosing toward full
of
qualification was concerned with
imperial
preferences.
We
are
par¬
ticipation in a universal multi¬
lateral monetary system."8.
bound by this agreement and we
going to honor it; Incidentally,
quite apart from the Mutual Aid
are
No sizable group in the United
Kingdom has
suggested that the
Fund agreement be rejected out¬
Agreement,
riod
can
be
of probation
regarded
as
during which
decide
whether
they
can
safely
participate in
or
a
system."9
observable differ¬
The
only real
ence
in the views of the most op¬
timistic and
the
most
of British commentators
on
the basis for
our
international
trade; do they really wish
follow
us
to
which goes back
have formally agreed
with the United States and flouts
on
a
what
course
we
of the
tional
inter-
also accepted a policy
in trade.
I
system
as
one
pessimistic
we
would ask those who recommend
what is in essence a barter
not
multilateral
commercial
our
of nondiscrimination
mem¬
can
universal
of 1938
"a time
bers
by
agreement with the United States
right
or that it be substantially
altered, but this may be due to the
feeling that the transition pe¬
principles of interna¬
commerce
to
which
the
United States Government attach
7
Political and Economic Planning, "After
Bretton o Woods."
Planning
(Broadsheet),
No.
225, Sept.
e
Ibid.
importance, and which
of fact I believe in
15, 1944.
sIbid.
?
\
a
.
:
v'
r
«
sound
as a
w
<
the
^
in
•
basis, with the United Kingdom' ;
extending similar privileges to;::
Sweden.;
.
.
It is true
sterling acquired may be
to purchase> or make pay¬
used
ments
within the
area; as a
the
sterling ; area
be
the
than otherwise
Rather,
case.
actually
credits-
made, available
by1
Governments,, and. -these :
credits form the basis for the ac-i;
counts on which drafts > will be»
wholes drawn to. make payments..
but this does not necessarily mean
that more will be bought from
would
In the French Agreement
it
This.
policy is in keeping with the tra- •
British banking practice
of extending loans through overdrafts, i.e., granting of a general-
.,
ditional
widens the clearing 'area, making
it at least
credit
scope.
most instances where credits were•
partially multilateral; in
which the Borrower
on
draw up Ho
a
Certain limit.
canu
In
•
.
but that all granted prior to " the war, how- •:
three agreements provide that,; as ever, they were for specific pur-; \
.
It may be pointed
opportunity offers, the contracting poses or in the form of funds
parties will endeavor to make y^hich^ ;couId ,be transferred and^
transfers
possible
outside
the used elsewhere. The distinction;
monetary areas to. which they are
limited.
That'is, if a non¬
now
held
resident
plight
use
Swedish
crown
he
it to make payments
ofa purreninaturetoresidents of
the sterling area, and vice versa.
This mechanism, if established,
these
in
cannot
cases
be
is
that
conversion
;
the *
credits may be used for the whole;
range of products;
»
:
guaranteed
and
It should riot be ^expected that [
of these countries are likely'
sterling accrual dur-*
all
to have a net
obviously would not be
a return
to the old free multilateral clear¬
ing system which operated through
the exchange market, but to a
found in the* determination of the
i.e., coaL textiles, and steel
official rate of exchange. * It may
be recalled that under * the old
ucts.
mulate and hold each other's
cur¬
Anglo-French
and
Anglo-Swed¬
our
interest is
'■ *v
prod-
» ;
■
Brit-■
In the second year, or as
ish
industry
Sweden may
regaips its stride,:
be expected to draw;
down the balances which have
accumulated. This system clearly'
possible to, achieve; bal-'
longer period of time
the necessity for
providing any settlement by the *
transfer of gold.
The fact that.
the French Agreement does re-'
quire settlement,at the. end. of the..
financial, posir
year does, not alter ;the general*;
tions.
The contention that these agree¬
ments
conflict; with the Bretton
makes it
ance over a
and,
removes
conclusion,* since these particular
accounts are ; designed to
absorb the financial transactions
credit
.
>
Woods Fund
Agreement' requires arising; out; of wartime finaricial;
explanation. The question Bf claims, w$dcft eae&i holds: against ;
whether they conflict in principle
with, the ; spirit or Vobj ectives of
the
other.
these .transact
Once
tioris have been; completed, it may,'
highly contro¬ be
expected
that the Anglo- ;
versial and is, moreover, imma- French Agreementj if v continued,;
terial to|the point bt/;^sue; here# will be adapted to conform to the.
balance that will be accumulated
All
agreements /obviously : fall Swedish Agreement.
>
by the respective, parties, where¬
within .the 5-year transitional pe¬
Less needs to be said about the ;
as
the Belgian Agreement sets
riod mentioned in the Interna¬
Anglo-Turkish Trade and Pay-/
833,125,000 Belgian francs and
tional Monetary Fund Agreement, ments
Agreement of May 4, 1945,.
£5,000,000 as the respective
and would therefore be presumed since it differs
amounts that;will be held by the
only slightly from;
to be acceptable.
the
wartime
arrangements
be¬
Bank of England and the National
Bank of Belgium.
Furthermore, each * agreement tween the United; Kingdom and*
/. Beyond these
sums,
however, provides an escape, clause where¬ the specialraccount countries. The >
sterling and Belgian francs may by adherence by either contract¬ Agreement itself / deals >mainly ( V.
be purchased by payment in the ing
party
to/ an international with the ipachinery for effecting •
form of gold earmarked to the ac¬ monetary agreement /. requires
a payments
between / Turkey and;
count of the other at the Central review of the bilateral agreement the United Kingdom, knd in con- ,
a
view Ho
making. any trast to the European agreements;
Bank. This gold may be removed with
at the will of the owner.
Bal¬ amendments that may be required. previously analyzed it does not;
These amendments, although not establish, a; fixed exchange rate;
ances
held in each other's cur¬
rency may be invested, however, discussed, can be assumed,to "be nor provide for the mutual sup- of sterling and
Turkish ■
only as agreed by the Central such as would eliminate any con¬ port
Bank of the country whose cur¬ flict between the bilateral and the pounds;
The essential feature is •,
1
international agreements. Finally that all payments to Turkey from
rency is so- held. This last provi¬
sion is found in all three agree¬ the 3- arid 5-year agreement con¬ the sterling area shall be made *
through
the
approved:
ments, but gold is mentioned only tain a provision enabling termi¬ only
nation
in the French and Swedish
by
either
party
on
3 Turkish Accounts,: and all pay- "•
Agree¬
ments as a balancing device.
notice, w h e r e a s the ments made by Turkey to - the
; '» - months'
Bretton
is
Woods
.
.
,
,
,
,
,
.
(
-
,
„
.
;t Since there is
commitment
no
the part of any of these coun¬
tries to turn over dollar or other
on
specified
currencies
a
to
an
ex¬
change, pool, and the agreements
matter
principle? If we discrimi¬
nate, other people can discrimi¬
•
«
Sweden
Bank of !Eng^
land shall sell sterling id the Na¬
a
policies in¬
high and stable
levels of employment is
a
prerequisite of the universal mul¬
secure
.
on
purchases
tional Bank of Belgium as may be
temporary ish
Agreements, but the three vary
A relatively common view is measure during the transitional somewhat in the. formula for de¬
that agreement on the Fund; and period but permanently. Various
termining the maximum limit and
Bank should be followed by effec¬ ways of achieving this have been
the method of liquidating out¬
tive agreement on internal meas¬ suggested and one of the criticisms
standing balances. For example,
of the Final Act is that it would
ures to maintain .full
employment,
the Swedish Agreement does not
and that "a persistent and success¬ prohibit or frown upon such ar¬
stipulate any specific limit on the
tended to
making
In effect this is what
has been done, but on a. bilateral
that
rights to enter into discnminatofy rencies has
been; established in thri
matters
pertaining to
international monetary policy.
,
countries,
-
.
.
after the
consulta¬
collaboration
on
gto / these
.
.
Fund
tion
n
required for payments which resi¬
method, official rates were estab-e
dents of the Belgian monetary
lished unilaterally; in terms
of
the story. Indeed the success Of area, under the exchange regula¬
sterling by the other; country.
some parts of the Bretton Woods
tions in force in that area, are
Now, however, the rate is bilater¬
plan-* will depend.. in turn upon permitted t6 make to residents of
schemes of cooperation in other the sterling area. In turn, the Na-. ally set and variable only with the
consent of both parties/This fac¬
related fields.
tional Bank of Belgium agrees to
tor should'insure
stability in the
There is one point that I sell Belgian francs .under similar
exchanges tand %prevent 5 competi¬
must bring to the attention of conditions for
payments by resi¬
tive unilateral devaluation, but it
some of the critics of the Final
dents of the sterling area.
does not block alterations; that are
Act. I mean those who appear to
Much of the same mechanism
Required by. changes in;; compara^
think that the line of safety for us
whereby the Central Banks accu¬ tive economic and
disposition to regard it as provid¬
ing a solution to the primary eco¬
nomic problem
of the- United
most
rui
"Bretton Woods is not the end of
forward in the promotion of mul¬
tilateralism, but that there^s no
Kingdom.
is not obligated to convert sterling
a c c
of
that market.
six bilateral financial • agreements
with the governments of three
us.
may
the
buying or sellings wherever they
see fit, and if the United Kingdom
right to draw
for an. unlimited amount for
purpose
.
as
be gathered that the Fund is
garded as being an important
the
.
.
ing the*first year of operation. In j,
the case of France, because of the'
general need for a great range'
of consumer and capital goods, it /
in detail they are concerned al¬
limited extent it indicates the de¬ is
terests are and with how many
expected that when account is'
most exclusively with the finan¬
sire to bring about as wide a taken in
Countries the frontiers of those in¬
February1946, the end of •
cial mechanism.
clearing system as possible, Al¬ the period of operation, a substan¬
terests march.
•
.>
There is a broad similarity
The Bretton Woods docu¬ between each of the three Eu¬ though the agreements themselves tial net franc balance will be heldr
pre bilateral in operation at pres¬ by the4 United Kingdom.
ment explicitly recognises that ropean agreements so far nego¬
ent, it wold be possible to arrange
while we might agree upon objec¬ tiated*
On the other hand, Sweden atThe
initial
agreement, to tie them
together in such a way the end of the first year will no
tives' and
methods
when
the that with Belgium, may be con¬
that a
substantial freedom
of
doubt have accumulated substan¬
world's trade is settling down, sidered as the pattern for those
transfer could take place. To the
countries like our own have to with France and Sweden which
tial sterling balances inasmuch;
extent that balances accumulate
face an extremely difficult period are more recent. All three are
as the United ^Kingdom "will
be
to the net account of one. or more
of transition in which they must basically concerned with the ma¬
importing from that country in¬
parties, there is obviously still the
creasing amounts of timber prod-;
keep their hands free to deal with chinery through which the United
need for some international means
their difficulties as they arise and Kingdom and the specified country
ucts, wood pulp and iron ore, >
of settlement.
as seems best. It is in our interest
whereas. the timing and scale of
will make their own currency
One of the main differences be¬ British exports are somewhat un- :
to make that transitional. period available to each other.
tween these agreements and the certain, particularly in those lines ,
as short as possible and, equally,
Tfius, the Belgian Agreement
prewar
to endeavor while.it lasts to de¬
sterling-bloc system
is which Sweden primarily requires,
are
as a
any
of
Agreement. might; have
both
the
to facilitate transfers of commodi¬
Anyone who doubts this has only
to look at*the map of the world
and see how widely spread our in¬
lonial territories whose currencies
time
prevent
those
and
There is nothing to
of the three froBi
rency to be converted.
1944
say standing out of international in¬
ments," rather, than as monetary
have that purchases from stitutions or taking a leading part or financial—which
they are. It
within the Empire can be made in making them work, particularly
is true that trade enters to the ex¬
without difficulty and that there when
they are institutions for
tent that one of the primary pur¬
are no exchange problems.
This economic cooperation, I have no
poses of the agreements has been
statement also applies to the co¬ doubt where our true interest lies.
a
area.
ment the
neither
of
many
don for
arrangements
sterling
Swedish
merely given the British Govern- >. >•■?$
British Government has concluded
Therefore, it is incorrect to
as
a
are
autumn
of the then
if any of the existing sterling bal¬ Chancellor of the Exchequer, Sir
siderable difference between the
John Anderson; which was deliv¬
ances are funded or placed in ac¬
ered early in October of 1944.
counts to be drawn on in emer¬
A European and the Near Eastern
sets of agreements.
gencies, the necessity for leaving few excerpts from this statement
Undoubtedly some of the mis¬
current accruals of surplus ster¬
may suffice to show the official
conception
about
these
agree¬
ling on deposit in London will be attitude:
ments has arisen from early ref¬
reduced.
Mansion-House speech
there is
currency,
are they required to per¬
mit British holdings of their cur¬
the
Since
the
In the absence of any full-scale
useful," and under the
Monetary Fund it would obvious¬
ly revert to this state. Moreover,
party
Fund Agree¬ European and three Near Eastern
and does not permit. % countries* Some concern has been
what
ment does
rather than
one
have it all his
relatively
a
United
the
that
available,
are
"ornamental
sterling-bloc
prewar
described
that
range of interpretation be¬
tween
these commentators and
offered
or
indulge in barter other
people can indulge in barter. It is
a difficulty in all
agreements and
contracts
other's
distinct difference between these
nate. If we
comparison of the few
pany it. A
statements
each
Thursday, January 3, 1946
,
French Agreement is on a
basis with possibility of
for similar periods.
.
^
It has been suggested
way
of
ments
'•■EDITOR'S
was
been
written,
NOTE:
concluded
Denmark.
Since
two similar
with
•
the
this
section
agreements
Netherlands
have
and
vW-v^:.
•
■•••
short
-
viewing
is
::
term
that
these
they
■
1-year
renewals
\ ' .
that one
arrange¬
constitute
credit »arrangements
expressed:; in
terms.
Thus,
general
for
monetary
example,
the
area
shall be from such accounts.:.
Additional; provisions are sim- >
Swedish; and /
ilar to those in the
other
agreements, iincluding pur-!
of sterling-area currencies \
through the Bank of England, investment of sterling and Turkish:
pounds only as agreed by the re->.r.
spective .Central Bank, flexibility,.
chase
.
-
Volume 163
THE COMMERCIAL & FINANCIAL
Number 4452
contact i and
;
The
cooperation.
which
through
ery
met has been
,:The
needs
such
.
Egyptian
not involve any
comparatively
Agreement .does
drastic change in
amount;; available
were
Turkish Agreement to 20% of the
sterling received in payment of
goods of Turkish origin sent to
informal;
all
members
under¬ the procedure followed hereto¬
standing
that
their
demands fore, but in negotiating the Iraqi
Should be held to the absolute Agreement it was necessary to
minimum and in the event of alter existing practice for obvious
excessive
n eeds
consultations reasons. ; Previously, a special
the
would
for .transfers
outside the sterling area, how¬
ever, is definitely limited in the
United
export
the
Kingdom,; excluding
proceeds
Guaranties
prewar
ment.
clause
is
fashion
same
definite
Agree¬
I
Both countries have been
sterling-area
members
of
the
r
insofar
significant, how¬
are
as
may give
hint of the future arrange¬
some
they
other
with
ments
total
our
imports,
32%
or
ii
Canada is included. Furthermore,
the
.States
United
has
sterling countries.
to the
•/;
The inclusion of our trade with
,
countries
the
and
which the
sterling-area
area
direction
in
is moving to adapt
itself to the new requirements
quired to meet real needs.
of
the transitional period.
that
cies
It has been brought out earlier
,
has
required
be
will
Inasmuch
as
both
are
of I year's
duration, however, it may be as¬
sumed that they fall within the
The amount of scarce curren¬
I
than
far
as
is
as
known
been
defi¬
no
computed
the
on
TABLE
'/
for Scare* Currency" Requirement# of
5.—Target
-
'
.
.
"
'
r
.
,
•
x
■
.
/
'
-
•
Egypt and Iraq,
V - Egyptian
in 1937,
and more than $580,000,000 to the
United Kingdom alone. These fig¬
ures offer striking
proof of the
1945
...
r-
»
imports
Special- provision :for noncurrent wheat imports—-—
3,000,000
.J - - r
2,000,000
Speciql provision for fertilizer imports- (if they;«an
•'.""be. arranged)'
3,502,500
15,067,000
Total
$12,906,075
t31,079,350
Exports' :ol merchandise from tho United States in"'•
1937 in dollars^—
13,665,000
I
——____
V
"Exclusive of allowance
pound converted at $4.15.
In
both: instances
the
will
reserve
other types of
margin is designed to cover such
contingencies as. an average: rise
•
for
the
fective.
aj^
of hard
scarce
or
essential items,
developments occur which war, the actual volume of imports
make the reserve inadequate both permitted is somewhat reduced,
If
Egypt and Iraq are allowed the but; still exceeds thaj^of 1938-39,
right to claim an upward revision In specifying the particular items
in the target. The most interest¬ which may be purchased from the
ing Of these reservations permits scarce currency countries, it may
a' request for revision in the event be presumed that other products
these
countries
will
be
that major items presently sched¬ from
blocked out of that market for at
come from nonscarce cur¬
rency countries are obtainable at least one year.
To
saying, in cost of more than 10%
a
the
from
scarce
currency
•
the
the
extent: that
stitute the major share of
Furthermore, the target figure
for Iraq is exclusive of the requiremehts; 'of the oil; companies
: arid special provision is made that
the necessary additional foreign
exchange will be made good by
the British Government.
How-
.items
com¬
modities previously sold
in'that
market, the deleterious effects
will be minor, although producers
and exporters of those commodi¬
the
from
cannot
scarce
be
obtained
currency
States.
It is doubtful whether the
existence of the sterling bloc be¬
fore
the
war
ham¬
appreciably
pered the international trade of
this country, but the continuation
of the wartime stetling-area sys¬
tem could be a s ignificantly re¬
tarding influence. If it did not re¬
duce the total amount of export
sales, it still would have injurious
effects
specific
materially al¬
have .experienced
which
coun¬
or
It is. the consensus among
those
concerned with the promotion of
'
TABLE
6.—Imports into
Sources—-
-..
United
froni Scarce Currency Sources, 1938
and' Iraq
U:,
*>->.
*
L
* f if
;
;
Egyptian imports
■
,
K
(Egyptian pounds)
;__w
States
Canada
Egypt
4 <,4
,
^
•
-
..'
Portugal
.
-
688,000
2,456,000
1,000
——51,000
'Switzerland'-
■
Sweden'
\
\v
■
597,000".:
33,000 •"
':^531,000
United States
' -
*
percentage of total:
vVv
.
-
-s'
; 1 ■",
"1
■-
->1
v
■
99,000
9,361,000
-
:":
86%
•
Target for visible imports in regular progranL>__^
•
31,000
-
From. scarce. currency
;5
.
983,000
countrie3_i±^---_l;^v,-- .^ --67%
j^FrQm.vjall'. countries__^_^_'_^__^___'___4^L^^^^j,.,,6,7,
..v.
::
v
fTdtal,^scarce/"curfences____u__—^j____»ir_^-rj 's i3,668,000
"Total,-.'.'all-:: countries.;—36,804,000
:• l--s •
••Valued, at
;
Iraqi imports
(Iraqidinars)
7,489,000,000
"::
3,202.500,000
-
or
practice, but that under a given
set
circumstances where
of
ster¬
ling itself becomes inconvertible,
or convertible only with great dif¬
ficulty, there is almost certain to
be restrictiveness and some form
of discriminatory
treatment.
sterling system and
abandonment on the
attack
4 To
a
demand
its
ground
that
it is
particular
against
offering
discriminatory
trade move¬
the
without at
ments
same
which will be successful is to
sterling
con¬
cause.
:and
returns
Unless
its
prewar
to
of convertibility, by what¬
status
this result is achieved,
ever means
of sterling
type
some
time
approach
alternative
an
fuse" effect
system, is
The task sys¬
inevitable.
almost
tem similar: to .the sterling area
is of those who are opposed to a
sterling to take the steps neces¬
sary to insure the complete con¬
vertibility of sterling. Dissolu¬
tion of the sterling area as such
would not solve the problem or
automatically bring about an ex-
pansion in the total volume of ex-,
(Continued
28)
on page
'
UvC-'f
Put Your SAVINGS
is
situation
The
To Work
particularly
Today
The safety of your
ment insured up
dollar surplus, but if this
done at the expense of other
a
which
countriesto
the
by
dollars
mentality.
previously flowed in the pro¬
cess of multilateral clearing, the
effeGf" would merely be the substi¬
tution of
must be freed as soon
commerce
as
practicable, and that the meas¬
ures
which tend to restrict trans¬
Ob¬
control system
influence
trade
by
tions-with
United
exerted
on
our
sterling-area transac¬
other
countries,- the
States has
a
direct
inter¬
which will permit the flow
of expofts to Ithe countries .within' the
area. The acompanying tables em¬
phasize the magnitude of the ster¬
ling countries as markets for the
products of the United States.
In
1937, exports from the United
States
to
tuted
these
countries
consti¬
approximately 24% of all
exports from this country. If Can¬
ada—an Empire but nonsterling
country—is included, the percent¬
age rises to nearly 40%.
< > On the same
basis, imports into
.
:
,
market for another.
one
If this were the case in the ster¬
3%
ling area, the United Kingdom
undoubtedly would be the coun¬
try to which
our
exports would
decline.
The
States
interest
in
the
of
the
sterling
future
the
the
in
United
V, '4
Current Dividend
.
|
can-
area
of total world
restoration of
•
Individual,
•
Estate, Partnership,
•
•
Corporation and
{
•
Trust Funds Invited,
j
trade
unre¬
stricted multilateral clearing. But;
more
1
Uhited^SfeHJgdom* Once those
nomic
financial
and
eco¬
difficulties
which currently compel exchange
controls and restrictions on im¬
have been overcome, the
United Kingdom will be able to
stabilize its position.
Under such
SAVE BY MAIL
ports
the
circumstances
Apart from the important indi¬
rect
invest¬
to $5,000
S. Gov't instru¬
U.
a
had
narrowly considered the
World trade and international co¬
problem of the sterling area may
operation that the channels of be reduced to the problem of the
est in the restoration of conditions
-v rs
past
may emerge.
ratio.
same
and
viously the realization of this ob¬
jective will mean: the disappear-'
ance of the sterling-area exchange
those
acquainted with those products
supplied through lend-lease, their
desire to buy similar items in the
postwar period has been accen¬
tuated.
It is questionable, how*
ever,
whether their'purchasing
power or supply of dollar ex¬
change has been increased in the
the new ties which
This survey has at¬
tempted to show that a sterling
system need not be restrictive or
discriminatory, in
principle
or
the
groups
actions must be abandoned.
advantage,This situation is very
question that the
was
a
manent
and not, therefore* be separated from
Moreover, the direction the necessarily wider interest in
on
not be granted will be
wartime expansion due to dislo¬
become; available in noncations
in normal - channels or
scarce
currency • countries,
the
sources of supply, probably* more
| target- figure wilt be reduced/ In
other words, any unspent balance .than" old products.
tries
The future of the sterling area
ties for which import permits will
at a dis¬
no
products of the United
raised during the wan
As various countries have become
were
is of vital interest to the United
<?f trade would be
gever, in-the event: that the speci¬ likely, to affect new,products and
goods
■
tered.
for which provision is made con¬
coun¬
tries.
fied
programs
trades.
uled to
to
its future.
;
v
system it is only as per¬
as the many invisible ties
which have bound it together in
upon
t;As
prominent in the instance of the
and sterling area. The United States
not become ef¬ could undoubtedly increase its ex¬
ports to specific countries which
U. S. and the Sterling Area
amounts
is
There
have
currencies which will be provided
for additional quantities
,
States
by
the interplay
tional, monetary arrangement
purchases, but will similar
When
and unavail¬ are reasonably generous.
ability of small items now sched- allowance is made for the higher
uled to tome from honscarcecur- price levels prevailing at present
as compared with those before the
recently, sources.
'
-<•
j
of
Sweden, Belgium,
and France.
It is altogether pos¬
sible that this will be the direction
taken should a broader interna¬
with
reached
represent a saving in foreign: ex¬
■It is
amounted
which
demand for
change..
of price in scarce currency coun¬
tries of as much-as* 10%, errors
and; omissions in- the programs,
latitude
available
become
not
.
Egyptian
tl
for freight and, insurance paid in sterling,
11'dinar converted at $4103.^ .
successful oper¬
postwarvsterlirig grouping, 'differ*
ing .from b°ih the sterling bloc
and the area, and supplemented
byi agreements similar to those
;
2,769,000
"
a
significant that -, both agreements
represent a. new development in
the sterling-area system which
could become the pattern for a
$14,115,075;
462,528^050
as
On the? other hand, it may be
—
Total In terras' of United. States dollars^—
—Vj.
Total visible imports in terms of United States dollars
with the com¬
exports to all
$445,000,000 in 1937.
ating institution.
*%
•
of
countries
tablishment
—-47"-
•
.
excess
interest is directed toward its es¬
(Iraqidinars) *
3,202,500 >
; 1,000.000■'■■■150,000
,
1,578,000
150,000
,
compared
bined
in
are
with Bretton Woods and that their
.
(Egyptian pounds) ;
7,489,000
; Reserve,'{margin-;
when
sympathy
countries
both
before
of various economic
forces, and there is little reason
to doubt that this same interplay
will have an important bearing
$400,000,000
inclusion of this
would appear that
it
provision
f - Iraqi — f j;J
requirements p
.
requirements
■>
1
Category— '
■♦Visible -imports
Invisible
of supply.
sources
per¬
that it?
its form has been determined
by
Moreover,
The gen¬
that non-sterling currencies would
be provided from the pool in any eral distribution in terms of local
particular amounts. The machin- currencies is set out in table 5.
to
objective of
an
form is being sought.
and during the war
its present
basisJ of transitional-period limitations of
the International Monetary Fund
nite long-run assurance has been particular needs and according to
Agreement
already
discussed. importance of trade with the
given to any member of the area certain assumptions with regard
UnitedKingdom,
particularly
that
become
Both
United States and Canada totaled
more
yet there is no
retention in anything resembling
countries was
approximately 50%.
of our total excesses; and approxi¬
mately 91% if Canada is added
As
manent British policy, nor
exports from the
to
the
sterling
of
excess
■
The terms of these
members.
arrangements
ever,
of
itself.,
ling
evidence that the sterling system
.
system, but these
agreements are devoted - to re¬
defining their particular position
as
sterling
♦
Anglo-Egyptian
remain
from
States
ing the calendar year 1945, sub¬
ject
to
certain
conditionsr to
Egypt and Iraq.
r"_ •
. »
Foreign
Exchange Agreement of January,
1945, and the subsequent AngloIraqi Foreign Exchange Agree¬
ment are, as the name might sug¬
gest, ■; on
an
entirely
different
basis than those previously dis¬
and
United
countries in 1937 constituted 23%
counrty
were
specifically
earmarked for its use in the fu¬
currencies.
that will be made available dur¬
Agreements With Sterling
Countries
cussed.
that
the
Canada in these percentages high¬
lights the significance of multi¬
ture,
but the new agreement
lateral trade.
In 1937 Canadian
specifies that, this will no longer
exports to British Empire coun¬
apply and that Iraq will conform
tries had a total value of approxi¬
Sterling currencies will con¬ to the general principles of the
mately V-k times that of Canadian
tinue as in the past to be made sterling area whereby all foreign
imports from Empire countries,
available on request, but all other exchange acquired by Iraq will
and these exports constituted 51%
currencies
are
separated
into be turned over to the general
of all export trade from the Do¬
The general opinion is that
"difficult" or "scarce" currencies, pool.
minion.:- Canadian > imports from
and
"easy" currencies.
As de¬ Iraq will be a net drawer on the United States in the same
scarce currencies during 1945 and
fined, the scarce currencies con¬
year, however, exceeded exports
sist of the United States; dollar, the rest of the sterling area will
to this Country by nearly $138,Canadian dollar, Swedish crown, stand in the position of contribut¬
000,000 or $130,000,000 less than
franc
and
Portuguese ing exchange.
Swiss
the excess of exports from Canada
Both agreements make it plain
escudo and it may be presumed
to the British Empire.
that the easy currencies will- in¬ that they are accepted without
Thus, despite the fact that Can-,
clude among .others the French prejudice to the right of the gov¬
ernments of Iraq or Egypt to ad¬ ada is the only major Empire
franc, the Belgian franc and the
Dutch guilder." Although no limir here "to any such International country not a member of the' ster¬
tatien
has been
place d on the Convention as that of Bretton ling bloc, its trade with that bloc
and particularly with the United
amounts df the "easy" currencies Woods." As "The Economist" has
that will f>e obtainable, there- is suggested, this statement''implies Kingdom is of major importance.
The combined excess of exports
the implied undertaking on the that the arrangements may not be
to the sterling-bloc countries of
part of Egypt and Iraq to restrict ipso facto compatible with1 Bret¬
the
British
Empire from
the
their
demands
to
amounts re¬ ton Woods."
^
in
agreements.
The
specified
of
amount*.
other
inserted
in the
as
Now, however, dollar-pool arrangement was op¬
Kingdom has set a erated with Iraq under which
target - ' or
maximum United States dollars acquired by
held.
be
United
the
under
Finally, the Bretton Woods
adherence
the
reserved
27
CHRONICLE
Write for
or
sterling-area
system would be obsolete and un¬
necessary.
In the long run,. the
only permanent solution to ster*
ling-area
trade
and
exchange
controls will be a substantial im¬
details or send check
money
order payable to
ST. PAUL
FEDERAL SAVINGS & LOAN
provement in the British balance
of payments.10
ASSOCIATION of CHICAGO
Conclusion
2116 W. CERMAK RD.,
CHICAGO
The most
important fact which
from this survey is that
the future of the sterling system,
including the / form which that
emerges
system may assume, ultimately
depends upon the future of ster¬
The
factors
improvement
acieving this
discussed in detail in
Balance of International
involved
are
"British. Postwar
in
Payments, Foreign Commerce Weekly, Aug.
Assets over $7,500,000.00
Reserves over
:
v
Never
56
less
years
oinnlo
and
rlnllnr
$475,000.00
dividend, in
without loss of a
than
trt
3CU
einil
infif.stnr.
28
THE COMMERCIAL & FINANCIAL
The Future of the
11||
Should
Sterling Area
^"
ports
from
What
one
another
United
the
might
producer
would
lose
States.
as
gain
the direc¬
tion of export
trade shifted.
[
Whether any regional economic
association is compatible with and
permissible under the Bretton
Woods arrangements is a question
outside the scope of this survey.
The agitation for such a regional
association
bers
which
such
from
answers
.
within
to
especially "hard."
What
have the answers pointing in
single direction.
;-
a
In
effort
an
mind
the
clear
to
down
set
doubted that
view of the fact that the
of
Americans
The
chances
not all
of
bringing
this
about.
titude of the United States, how¬
ence
Is It
return to
as
is
possible.
tendency to make
Tight of the task which,will entail
is
to*
or
ipeans
From the American
no
it
good from
that the many wartime
dislocations and associated diffi¬
culties must be
adjusted in addi¬
tion to those which are inherited
from the prewar decade, the time
element involved takes its proper
which
promote
The
generosity? Obviously not.
real
point at issue is not
multilateralism or re¬
,
is not restrictive and
conditions essential to the
4 ful operation of
can
success-
tion and any collateral trade con¬
do
constitute
a
"hard
multilateral sys¬
be made effective. If
they
a
ditions
bargain." However, the British in¬
sistence on this viewpoint does
can, then the
justification for any
restrictive regional grouping dis-
p appears, Thus, the solution
■'
broader
ment
not convince Americans of its cqr-
to the TectriesslS4!A
an
,
within
Do the Generous Conditions of the
economic environ?
which these condi-
Loan
tions rare active is the solution to
the sterling problem.
^
r i
:
Form
to.
told
are
imagine
seek
Chapel
to
Moore & Co., Penabscot
Building,
members of the Detroit Stock Ex¬
change,
the
announce
of Don W.
Miller
turn
admission
and Harold
Traders
R,
in
charge of the Corporate and
;3ReaI v Estate - Securities '
Depart¬
ment.
Chapel, who recently re¬
signed as a partner of Crouse,
Bennett, Smith & Co., will be in
charge of the Municipal Bond De¬
dent
of
the
and is a
Bond
the
Vice-Presi¬
Traders Association;
of
Detroit,'
a
of
the
Harry A. McDonald
,Moore.
'f;.:
*
-
firm
with
offices
with
at
William
Proprietorship
Wilbur
F.
ex¬
be
repaid, such interests seem will¬
ing to go ahead with it, on the
theory that the immediate bene¬
fits
they derive will outweigh
their
a
same
Kurtz
as
loss
of
any
ultimate
on
the
loan.
groups
of
way
of
American
.
These
doubtless will stand
firmly in the
ation
na¬
any
relax¬
import
-
sole
to
years
*
The
same
behind
with
to
come.
the
the
....
our
American motives
r
method
ternational
the
____
to benefit. Thus will be abolished
thei sterling-area "dollar pool,"
(The agreement provides for ex¬
ceptions
to
this
relaxation
of
present
controls.)
British
This
undertaking is regarded
as a con¬
siderable concession by the Brit¬
ish and from that
point of view
trol
of
the
proceeds
transactions
is
of
of
trade
in
subject, however,
Britain
V-
«
•
for
a
Woods
;
'Was
BW
a
Quid Pro Quo?
At least
for
not been unwelcome to the Brit¬
ish
Government, on the theory
it may help put the loan
Congress. The reasoning
is that anything the > British re¬
gard as a "hard bargain" must be
correspondingly to the advantage
that
across in
of
It
Fund.
observer,
The British of
do.
"entitled" to
aid, and this; in the form of a
gift. The American negotiators,
Britain's
ratification
of
compensation for its
sighing; the financial agreement?
and
America
more
advantages than
it does to the
U.S.A., inasmuch as
Britain ; is ?a - borrowing
country.
From
the
American
viewpoint,
considering the considerable
strain
of
Fund
and
seems •
to
to
claim
ancestry in the
it
stretching the point
Bank* agreements,
that
British
ratification
of BW is
recompense to the U.S.A.
for the loan and financial settle¬
In
war
claims.'
statement to
a
ic! j'V of
December
-
,
"
,
the
■
.
i
"Chron¬
13,
Represen¬
tative Kunkel of Pa., states that
morally
the
British
as
to
well
is
re¬
Leasel and
:
the
settlement;
waiver
gift
Isurpibs^rdpettj!
unless
the
loan's
regarded as a
clauses be
the
gift. Yet,' if
i°an Is approved by .Congress, it?
case. Despite
UNO, it would
imprudent to ignore the posjsibility of history in this respect
repeating itself.
Each
the
1914
since
of
was
earlier
^ *n
would
we
in
Britain
the
also
be
tack
it
age
different.
In
such
an
our
that be
of the atom bomb
long-range projectiles will
and
measured?
feel
cans
that
saved
not out of
ain is not conceivable. For selfish
U.S.A.
To
the
extent
in
us
challenge
finally
the
debt
can
because
British
the
Nazi
im¬
is
attack.
because
-was
Britain
,
itself endangered and
saw
a
desire to protect the
None
the less, the British
action, most Americans will grant,
to* the interest, of
was
that
owe
Some Ameri¬
our
from
we
just how
That
Britain finally accepted the Nazi
us
quite possible that the
British
Isles
will
be
simply
skimped. But, in any war between
the
U.S.A.
and; another
great
power or powers, a neutral Brit¬
join
help,
measurable,
at¬
is
reasons, Britain would
such a war, v;
-J"•* * ;
constitute, an ad-
even *.1 Britam proves un
If it be conceded that
be
juslified in assuming that the next
war
likely the
able to pay it all back
different from
so
that
wars
seems
mission thaLwe owe Bntam
wars!k®}P>
world
two
as
this
coun-
loan
-
strengthens
Britain
militarily, it
requirements.
to fit into our
sipated in; supporting an ephemera! standard of living in Britain
would require a painstaking study
of its use by the British.
There
are no strings tied to. the loan in
this respect.
Does the
\
Agreement Make Good
Will for Us in Britain?. ;
It
seems
site!".'.
into
New
have
disastrous
a
Statesman
"American
forced
bargain."
(The
and
Nation.)
has driven
savage bargain." (Tribune). "
A bitter pill. If the purpose of the
American Congress ... is
de¬
liberately to wound and afflict
capitalism
.
.
.
an
outpost for Ameri¬
interests across the Atlantic.
Fi^nr thq xnjlitary; standpoint, the
atom bomb raises the
question of
whether
Britain, however strong,
"any longer be a fortress, - ; '
can
Should
We .Be
Moved
the
by
British "Equality of Sacrifice"
been
a
constitute
can.
.
to have done the oppo¬
We
'Underlying the' "we owe It> to
Britain"; reasoning may be
the
feeling that a strong Britain will
-
.
■':i
-'
Argument? v-
!4!A A AV!
P&z
*
B&cause
this
argument
during, the
we
paid
we
attention
for
is
war
to
Lend-Lease
no
why
reason
should continue to do
so
after
the war, It is true that the effects
of. war continue long after the
fighting
British
But to
ceases.
adopt the
this time
argument
is
to open ourselves to unforeseeable
al¬
people, it has certainly
succeeded. - It
is
aggravating to
the
find that
draw the line?
were
committed
Fund and the Bank
it
as
be
British
be
American
with
especially
agree that we owe Britain a
of more than the cancelled
Military Unit?
seems
Britain
opinion,
Twice since 1917 this has been
How much of the loan will be dis-
no doubt thai the British
their BW card with this
mind. In doing so they took
advantage of the strong desire on
the part of the Administration to
see BW. set soon. Yet BW offers
negotiations kept
flected in Congress, evidently con¬
cluded that this country does not
a
played
in
are
who during the
in
close
touch
Einzig in the "Chronicle," Dec. 13,
1943, p. 2891, col. 4.)
Not. Britain
course say we
they
say,
ouif
the end of So¬
There is
to
They,
cialism; (Cf. the comments of-Paul
Arc
will
Do We "Owe" Britain Our Help?
more
grounds that the end of exchange
mean
it
doubt
ish opposition has already been
here by proponents of the
loan in- just this way.
the election; expected by 1950, it
will then abrogate BW on the
control will
No
U.S.A.
?cited
probably
of the
some
the
have that effect here. In fact, Brit¬
will be some years before this
question can be answered with
certainty. According to one Lon¬
don
British writer has
one
reported that the criticism of the
loan agreement in Parliament has
international
part
ready
multilat¬
conces¬
pro quo
Certainly
without
something
like the contemplated substantial
aid to sterling, the BW ■ monetary
program would not be a success.
If those who say this loan is not
enough for Britain's needs are
in¬
art
.
BW
conducting°inon
quid
of Bretton Woods?
current
to the restraints of British import
controls, the agreement specifies.
Import controls necessarily will
under
agree
a
will?
Is Britain's Sarcasm Put On?
a
corresponding gain bjr the U.S.A.
(The freeing from exchange con¬
are
British
mutual good
how it could
see
other currencies, the
cynical Laborites believe that, if
United States like^others stands1 Labor is. confirmed in
power at
that, along
insistence
loan,
as
any
bar¬ ment of
riers that may be required to
pay
off the loan
in full during
the
proprietorship,,
proprietor.
share
tional
J.
OHIO — W. F.
Union Commerce
with
will
ican Government Thus, the loan
is a subsidy to American
export
interests. Even if convinced that
in the end the loan will not be
34
CLEVELAND,
Kurtz &
Co.,
Building, is now
country
nanced by the dollars of the Amer¬
Stelmack Corporation in the
past.
Now
this
expanded, thanks to the loan, fi¬
and William
-
was
from
ports
Westminster Terrace to engage in
the securities business. Mr.
George
J. Moriarty has been active as an
individual dealer; Mr. Patrick J.
Moriarty
same
see
Will the Loan Assure the Success
mencing for Americans on the ef¬
fective date of the loan and for
others not later than a year from
then —made
freely
convertible
mo¬
loan. The
a
labor
brief period of a year or two
are
ORANGE, N. J.—George
Moriarty and Patrick J. Mori¬
arty have formed George J. Mori¬
Co.
as
can
ac¬
many
supporters of the loan.
What it boils down to is that for a
WEST
&
Certainly-a great
and
J.
arty
making large
tive-applies to most agricultural
George J. Moriarty & Co.
i
only
so
result of the
former
ciation, as well as the Municipal
Advisory Council - of Michigan.
partners
did
will get orders from Britain
Chairman of the Michigan
Group
of the Investment Bankers Asso¬
Other
they
cost of later
future
one
right, then the loan is noi enough
quisitions of sterling balances by
to assure the lasting success of
the
Americans and others are—com¬
.
former president of the
Club
If
that
definite period.)
Ameri¬
The loan 'of course will stimu¬
can supporters of the
$3,750,000,- late employment and exports un¬
000 portion of the loan, and to til the
money is used up. Those
some extent perhaps
all, are moti¬ who directly profit from such em¬
vated by sympathy for Britain's
ployment and exports will benefit
position as they see it. Yet basic¬ temporarily; If the
goal of reduced
ally, the motives of America in trade barriers is
achieved, these
granting this loan are selfish. The groups will receive
longer-run
widespread support for it in busi¬ benefits as well.
•'
;
\ .'4.
ness circles has its roots in the *•-; V, '
fact
that
individual businesses Is Britain's Ratification of Bretton
company in 1934. He will continue
is
established.
extent
sup¬
the loan.
the
conference
foreshadowed at BW.
Are Our Motives Unselfish?
Association of De¬
He
that
the
and
be maintained that those
sions constitute
to
agrees
in
was
continue
Michigan, Inc., joined the
partment.
here
concessions to other countries.
,
troit &
out
at the
Chapel as general partners. Mil¬
ler, a past President of the Secu¬
rities
,
and
the negotiators wanted in this loan
to give concrete expression to a
desire to help the British because
blood is thicker than water, it may
McDonald-
—
not but it is hard
other countries
China; will not
benefit by the new loan
Russia
conditions
DETROIT, MICH.
for
that
like
McDonald-Moore
Admits Miller,
Precedent
a
Other Countries?
We
To
into
international; problem of
restoring
:
it is difficult to
advantageous
now
bookkeeping by about
$4.3 billions of reciprocal LendLease^ and reputedly settles for
surplus American war property at
a few cents on the dollar.
They
are actually the comments of
a
nation about toReceivesthei ;mo$t
generous
international loan
of
which there is any record. If the
British take our money now with
a snarl, how will they "act when
they face the first payment date
six years from now, or the tenth,
twentieth
or
fiftieth
payment
date? And what" will an attitude
of this sort at such times add to
concessions to the United States,
grant
we
discrim¬
desirable,, then any provision for
inatory. The' issue is whether the payment of interest and amortiza¬
tem
Britain
both critics
.
United States." While
the British thesis Moreover, in carrying out the de¬
that the United Kingdom is en¬ mobilization of trade barriers and
titled to postwar prolongation of preferences, Britain will be no
more<- than
redeeming
pledges
gifts from America in the form
given in the Atlantic Charter and
of
"lend-lease"
in
as
large
the
master
Lend-Lease
agree¬
amounts and for as long a period
as
the British themselves deem ment.)
gionalism is the better policy;, it
is not whether the sterling system
or
mutually
commerce.
.
nation
a
are
system of
BW
why the British regard these
^
whether
is
all the par¬
to reach
.
"!
said;
agreement as
soon
as
possible" to reduce ob¬
stacles to international trade and
v
.
a
we
Lend-Lease obligations, offset ac¬
cording to a reputedly very loose
porters of the Government re¬
garded the acceptance of BW and
the American trade policy objec¬
tives as great concessions to the
governments that They
participate
If
place.
*
"seek
most
doubt¬
of
as
to
ending the sterling area's dollar
pool. Mr., Kunkel states that he
A
trying to col¬
lect fwar
debts, as during the
1920s. Indeed,- the "savage bar¬
gain" alluded to in one sweep
wipes away some $29 billions of
this viewooint in Washington. Re¬
porting the Parliamentary debate
of Dect 12, the NeW York "Times"
the American stand-
tion recommends to
standpoint, ticipating
is-
ratification
not the comments of
are
from whom
British cannot but have known oi
of 1944 j to which the UK was
signatory, in a separate resolu¬
a
were
(Lord !Wb6ltonl!A!'!A
One might-cite dozens of com¬
P
us.
UK >is
ments similar to the above. These
the financial agree¬
quid pro quo,
The
with
ment
(It should be noted in this con¬
nection, however, that the Final
"Un¬
or
belated
along
point.
in
"rapidly"
"immediately." When one
considers
is
dation."
to secure additional
weapon
ain's
national conference. This is to the
certainly unexampled
generosity. Who can cite any
equally generous offer by any na¬
tion at any time? Is there any¬
thing in British financial history
that will match1 this ' proposition
that
assume
Bargain"
agreement does not of itself
bring this about, but at least the
British:; have formally agreed to
discuss the subject in an inter¬
exampled Generosity"?
multilateralism
There
"Hard
a
fu¬
willing to pay a price be.yond what concessions the Ameri¬
can
delegates made at BW, for
the
sake
of
seeing
BW
now
launched. From the standpoint of
thesepAmericansp: perhaps,: Brit?
Act of the Bretton Woods Confer¬
a
a
war," $(Economist.)
by the U.S.A.; "as a de¬
feated enemy."
(Norman Smith,
Laborite M.P.) "An hour of degra¬
less
trade
,
favors as rapid
their
to
as
and what it stands for
pay
point one way, which may
be a disappointment to those who
that this view is insignificant. ?. all
along have known whether
Indeed, it may well be that as they are' for or against. the » pro¬
time passes it will assume greater
gram
now
under consideration.
and greater importance, and that
Nor, do we have all the answers.
a failure in
reestablishing a mul¬ For those who have not made up
tilateral system will not result in their minds, perhaps the publica¬
hilateralization, but in the forma¬ tion of the following will serve a
tion of regional systems,
The at* useful purpose.
>
ever,
the
treated
However, those Americans who
plcae the greatest store in BW
system and are willing to
to get it, the Anglo-American
Agreement
does
advance
the
small allocation of space
should not be assumed to indicate
those who have been enriched by
use
bar¬
a
trade
concessions from
of
but
-
as
majority
that sort
want
cooperate to follow
policies of full employ¬ indicate such
considerations
as
ment
and
expansion has'.been seem pertinent to the questions. As
largely ignored in. this survey, the reader will note, the answers do
uniform
the
as
policies — this loan
agreement not committing them-^-
quite all the advantages
proclaimed or assumed for it, in
questions which have sug¬
gested themselves upon the publication of the
Anglo-American
Agreement and has attempted to
would
indefiniteness'f
ture
possesses
various
mem-
of
Agreement
the
multilateral
trade
system
which the U.S.A. seeks to restore
own
would
.
has
writer
his
While it may be
British
gaining tool, and he now predicts
that they will use "the advantages
United
the
the
the
their ratification of BW
•;
for
Does
predicted
Hold?
ways
-
Benefits
States
*
al¬
source
a
"free for all" basis, a condi¬
which the British regard as
eral
tion
the
question-and-answer
method of: presenting a story to
some
extent has displaced cross¬
word puzzles as an indoor sport.
The trouble is that questions-andcials
(Continued from page 27)
Thursday, January 3, 1946
Congress Accept the Anglo-American Agreement?
(Continued from page 3v
•
CHRONICLE
the British
quarter
our
of
[sic], in the
pay
reward for losing
our
national
common
tribute for half•
a
a
wealth
is to
century to
cause
consequences.
accepting
Where
Would
this
should
argument,
open
ourselves to having to accept
same
one
from
China,
we
not, in
we
on
the
the
•
,Volume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
;
Number 4452
;
grounds that China was in the war opinion by a handful of officials,
with Japan in 1937" and fougnt
utilizing the vast resources of the
*'*' *
r
j
continuously thereafter? So long Government.
i Naturally; since the Government
as
our
standard \of
living ; is
Britain,
fice?' Even
it
British
The
Britain
might be
than
earlier
aggressors
and
we,
fought harder, does not appeal to
Americans. We might argue that
aggression
Would
have
been
checked, had the : British, after
having urged this country in 1.931
to take a firm stand against Japan,
not backed away and left Secre¬
tary of State Stimson holding the
bag. That the British now again
hold an;?/Empire in Asia in the
last 'analysis
is. due solely to
•
r
-
Britain and China labored
years
get us to join their war. Had question the good faith of; the
we
not done so, where would British in adhering' to the letter
Britain and China be today?
At of the contract. It is not the finan¬
cial commitment which; bothers
what point will they ever say:
It is the commercial
"Now you have done enough; your the British.
policy conditions we are seeking
sacrifice equals ours"?
'
to establish.'
'.
Is Too Much Being Promised?
There seems to be a consider¬
to
■
'
.
.
■
'
.
.
-\
•
.
..
'-".V'.'
Walter
almost
•%..
V
■ »;;■ M,
significance of the Anglo-Ameri¬
can agreement may seem to prom¬
ise more than it is safe to do. Sec¬
lowing typical .quotations indicate:
the
talk, most of it envious, but
little else*
•
market
the
.•*>
#
have
weeks
Three
since
'
*
*
.
passed
made
its
high of 195.82 on December
states:-"It
A Britisher to the Associated
not a gift or a grant. It is a
loan with interest. In addition to
Press in London; "We'll live on
11.
the fat of the land for two years
<md then be worse off than we
cline carried it down to 189.07
retary of State Byrnes
is
repayment [is this assured?] the
United States receives benefits in
,
the revision of trade
Truman
after
citing the
-
A
negotiations, I n eluding
recent
low point for
day however was 187.51.
For purposes of technical cal¬
culation it is the low point
rather than the close which
what it
be."
will
.
will not be
only to take
the American trade proposals "as
agrees
For
paid back."
reasons
;
>
,
of American
r
subsequent rallies mean any¬
thing.
V
com¬
mercial
policy; alone, full repayy
basis for international discus¬ ment of?this
loan?by the British, .y/y;
sion " The ♦ UK will "use its best' will be
extremely difficult,' if hot
After
jfendeavors to bring' such. discis¬
successful
a
this
may
turn
impossible. American commercial
policy of recent decades has had
the support of powerful groups
conclusibh";
out to
mean
V
*
*
breakm^tdown prices
rallied. On Dec. 22 the
high
D. Heed in the "Chronicle" of
in and out of the Government.
Dec. 20, 1945. Perhaps a less ex¬
disappoint¬ These same groups are support¬ treme form of this question would
ment in overselling the British ing not only this loan, but the
be
better; ' Isn't the : alternative
financial agreement, just as there broad program of lending and in¬
continued economic blocs and re¬
5s risk in the BW program for the i vesting^ abroad. A good argument
pressed trade?
Same reason.'According to an edi¬ for this UK loan is that the U.S A.
•; As pointed out under another
torial
in"• the
Cleveland
"Plain is "hell bent" to pour dollars
heading in this article, the British
Dealer" of Dec. 6, "si good deal of abroad anyway, so we may as
do not seem to agree that the
evidence is coming to light to sup¬ well let the British have a liberal
volurpe pi trade-^their trader-will
'
port the belief that the BW pro¬ portion thereof.? y
be increased by reverting to thq
posals were oversold, that the Ad¬
multilateral system. Rather the
Is the $4.4 Billion Loan Burden¬
ministration, in its zeal to get the;
ooposite. Assuming, however, that
some to Us or to Britain?
necessary
legislation
through
the multilateral system jyiH Jus¬
Ernest Lindley, a Washington
Congress, created the impression
tify the American rather than the
that by this means a large part of columnist who generally reflects
British expectations, cannot this
the foreign loan issue would be the official view, points out that end be achieved
by some alterna¬
permanently .resolved."
This by wartime standards the 'finan¬ tive method?
might be true of the statement by cial terms of the credit are in¬
i 'Underlying the whole range of
the then Secretary of the Treas¬ consequential. "We gave several
financial programs, including BW.
times that amount to keep Britain
ury f Morgenthau when be said:
Export-Import Bank, the *making
"The Bretton Woods proposals, afloat and would do it again. ;
.
additional foreign loans by
when adopted, will provide all of The credit is much smaller in of
the essential elements of stability amount and less generous in terms Congress, and the encouragement
of
private
capital
investment
[of foreign exchanges] "
than, we could afford to grant,—
abroad, is the; thought ^ that we
or would
grant without negotia¬
must lend foreign countries the
Is the Agreement Being Frankly
tion if Britain were in desperate
dollars with which to buy all 'the
Presented
to
the
American
straits." Lindley points out, how¬
much
or
'There
*
:
v
i
little.
is risk of later
.
Public?
ish
propaganda to put the Brit¬
financial * agreement I; across
British assets abroad are several
fact
seen
erable
•
leads
one
that
ever,
theJ Government
that
fit to organize a consid¬
to read with caution the
this
is
not
times the amount of the
"it is absurd for the British to re¬
nal," a! Govemmenrsurvey made
before, the loan agreement was
gard
American business
American credit." In other words,
cording to the "Wall/Street Jour¬
the terms
of this
credit
burdensome."
as
involved.
'
-
are
Some
of
these
whether the
alterna¬
course
:
a
war
chase of large amounts of
l
policy
billion
loan
is
an
<y
set
with undiluted
precedents which
im the moulding
■
being
of:
.puWi.o
■
*
■
*
-
It
strong and weak days
more
was an¬
before
distribution
is
of, "What you're pleted and the break
case
doing speaks
so
loudly, I can't
with
But
■
thesis^
a
good
many
see;
cans
of
for exampleOM^
return
com¬
comes.
above
the
being
'
Last week, and the week
befOTe, it was suggested here
it could again attack the old that
long positions be liquid¬
highs, or—and the or in' this ated at specific levels. By this
case
is highly important—it time it should have been ac¬
was
ready to retreat and was complished. I now advise a
merely going through some cash position until the market
/ ^.
preliminary gyrations as part clarifies the outlook,
of a distributive phase before
More next Thursday
either
a new
it started
a
base from which
y
i
real* decline.
£ The action of the rails dur¬
ing this period was equally
significant. It's true that they,
lows on
industrials
made .theirs. But at the same
time neither did they attempt
-^Walter. Why te
[The views expressed
Chronicle.
Dec. 21 when the
those of the author
penetrate old highs which
to
this
in
article do not necessarily at any
time coincide with those of the
didn't make any new
They
are
presented as
only.]
LAMBORN & CO.
the. companion a v e r a g e s
seemed to be trying. On the
99 WALL STREET
NEW YORK 5, N. Y.
8 when
they made a high of 64.89
each succeeding high became
lower though lows held at
about the 62 figure. - This in¬
contrary since Dec.
SUGAR
Exports—Imports—Futures
-
■
to be a
its
to
it
was
Established
traditional
de¬
(Wilbert Ward,
j'VTu"
Britishers and
to
Ameri¬
:
Schwabacher & Co.
W.
^
;
(Continued ron; jpage
v,
;
,
y
'XXX.-
Chicago Board of Trade
14 Wall
Street'd
COrtlandt 7-4150
New
Stock
York
Curb
York
New
Commodity
Chldago
New
Orleans
And
Cotton
" - -y
Exchange
Exchange
Exchange'.
of
.
£
Inc.
Exchange,
Board
.
Trade
Cotton Exchange
other Exchanges
,
-
<
'
N. Y. Cotton Exchange Bldg.
York 5, N. Y.
Teletype NY 1-928
.
Private Wires to
NEW, YORK 4, N. Y.
Principal Offices
CHICAGO
San
we
J"
Members 3%
York
New
New York Stock Exchange
-New York Curb .Exchange (Associate)
'*
.
•.
Members
t
New
yy'yy
-
course
-
,
r
reported
some
the
H. Hentz & Co.
S
t
enough to enable the
follow
'
Pacific Coast Exchanges
it is being said that the loan
British
this
*-
Orders Executed on
;
as
1856
Securities
miscortcep-
forced to
cigby4.2727
Pacific Coast
multilateral £ trading
of
is not large
y^.y/y
statement
in order.
Added all up it showed that
the
market
was
building
in the "Chronicle" of Dec. 20.) By
More Economic Blocs and Re-
ifor
seems
which
war."
V 1
Isn't the Alternative to This Loan
comfort yy. duced. Trade?
are
J
;
'
part due to the exigencies of the
unsupportable
burden for neither party.
to
from
One must conclude that the $4.4
for the Government to fol-
view
There
UK
proper
low, that it is in a good cause, in
interest, and for
the good of all. Their sincerity is
not to be questioned. Yet one can¬
not
other
foreign
tion that the loan will "enable the
has not left the
the best national
the
enough buyers at the re¬
ready to absorb of¬
ferings. The result is obvious.
cent lows
being bullish, the market
the pur¬
ijaw materials for stockpiling.
American protection and support.
the BW program and other
projects. The policy makers are
is
side world with dollars:
British with too great a desire for
on
this
in
losses
tive method of supplying the put-
into peacetime.- They seem to be
carrying over much more notice¬
ably in Britain than here, so much
so that' Americans are wondering
campaign. ^1?
ready under way is similar to that
which the Government conducted
that
be
different character¬
"didn't confirm it.
worth the
could be avoided by an
The fact is that wartime stand¬
ards do not carry over very long
vTbe propaganda;
convinced
If it sells I doubt if there will
Broadly speaking there are
istic; The spirit of buying,
many indications that the in¬
present on the first advance dustrials have built, or are
to the old highs, was no long¬
building, - what f technicians
er
present.
Instead of- tape call "a; head and shoulders."
performance there came a lot The first shoulder took all of
of talk. Talk in itself, particu¬ November. The
head, or peak
larly where the market is con¬ was the high in December,
cerned, is always plentiful, and the second shoulder is
though unfortunately, it is now in the process of build¬
seldom profitable. But in this
ing. This sort of market for¬
case;talk was merely confus¬ mation isn't completed in a
ing. For even if it persisted week or a nllonth. We will see
long-run: losses of money and der
pletion of our natural resources
.
y announced ; showed
that '.- about
}
10% of the American people were
C' theu against" a : large Credit for
Britain.- - ;
:
y
a
now
though
proposed
arguments it is putting forth. Ac-
;
sumed
market
profits to follow a course of
patience. If the public begins
to suspect that the rally is
delayed it will become sellers.
goods we would like to sell them, dicated that buyers were no
What this question really boils
longer chasing stocks,
dov.n to is whether, in the light
of the, Unlikelihood of our ever.
getting all these dollars. back
again, the temporary benefits to
the case.
"Britain is coming'out of the War
with a substantial portion of her
prewar overseas investments
The
has
the
But
>
people in
hungry for.
.
la
but
dullness.
a
—
too many
are
hear
what
you're saying." more than a possibility I see
important.
It is this, low
A nationally-syndicated col¬
The quotation is probably in¬ no reason to advise readers
umnist: ".
we are handing
point which will now have to
correct, but the analogy is that everything is wonderful
the British a four billion dol¬ stand
up as a level that will
not.
•
lar loan which everyone knows
and that additional buying is
hold any future declines if
*
♦
*
separate joint statement on
commercial
policy,
however,
makes it clear that the British
sions to
there
is
The
Government
Dec. 21, the
that
AP
the
to
000,000,000, for that's
of /the
"longrange commercial policies in.
the broad sense," states that "the
discussions have been successful."
>
British banker
From that level the de¬
in London; "I suppose we should
be grateful for a gift of $4,-
statement,
purposes
on
before."
were
t
policies...■*'
Attlee
The
stalemate
•
morning after. And as most
people aren't long of the
liquors the move caused a lot
of
danger in such a condi¬
.(is ; in: the, ; possibility
narily this should lead f to'
nothing more serious than a
But while all this
Year's eve; the rest like the
.
on
The
to
up
take
to
that enough people will also
Ordi¬
previous market days was refuse to chase them.
) the
Says—
able
body of opinion here and
abroad that the escape clauses of
the loan will be used, as the fol¬
statements
official
The
were
,
declines.
on
193.89 and the bearishness of
Whyte
'
..
industrials
willing
were;
tion
•
»
■
story.- was • quite different
Pearl Harbor, when for
The
before
Markets
"";
-
American sacrifices.
they
them
completely dispelled.
was
going
five-year. period. The nominal .=By WALTER WHYTE==i. on it was
interesting to note
J
•' v'
V.:iy;■ '•
•);X X*
•*.
2%
interest
rate
is! stressed,
rather the the actual maximum Market Gives
Indications of Pri¬ that ■■■•■ the ' rally J had
taken
interest rate of 1.62%., The gift
mary
Distribution.
Some More stocks to just under a range,,
contained in the interest rate is
the low point of which was
minimized by citing the overall Strong Days Probable Before Phase
Is Completed. But Liquid State Now about 193 and the high just
cost of money to the U. S. Treas¬
under 196.
So far all the pre¬
ury, rather than the cost of longPolicy Recommended.
term money; etc.
*
*
ceding rallies were unim¬
X *
except
that
they
is the Loan Offer Accepted as a
The first few days of 1946 portant
Loan in Good Faith?
showed an ability to advance
added little to the market
With the six-year period of
to a previous obstacle. As the
that might indicate the im¬
grace before any repayment or in¬
industrials got into that 193mediate
trend.' The
terest begins and the wide escape
liquor
196 range they gradually as¬
behaved
like
New
clauses, there, is. no reason to stocks
that
argument '
The fol¬
seen.
the
of
task
on
cial propaganda only \ the loan's
virtues; all of the "pros" and none
of the "cons." Thus a six-year pe¬
riod of grace is described as a
in the war with the
was
the
was
lowing day they managed to
better it again, this time the
close was 193.45.
By Dec. 27
Tomorrow's.
the loan one
should, expect to find in the offi¬
share what it has.
..
undertaken
selling the public
argued, owes it to China to
so,
has
now
higher than that of Jthe Chinese,
would there be equality of sacri¬
of 190.87
29
Francisco
—
Santa
Barbara
' f
Sacramento
;Fresno .-J.
Monterey -—Oakland
—
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
*:*?.•
Should Congress Accept the
(Continued from page
a
is
Agreement
the
Will
29)
Result
in
-«T—1
Trade?
that
in
course
While the loan will result in
case.
any
Can it be said of Britannia that "a
i§ of the
will,
opinion still"?
same
and
opinion
Moreover, it is incorrect to say
that the multilateral
in
vailed
(Cf.
the
policy
war.
discrimination
this point Senator Chap¬
on
elimination
involving
of
trade
various
and
Britain's
as
empire
of British
cause
preference
is
erroneous.
After the
Imperial Conference of
1897 the UK gave notice of the
with
of
its
trade
later
therefore
it
be
elsewhere.
barriers would result in increased
done by
by other do¬
minions in subsequent years. The
UK itself adopted such preference
Alternative Course?
an
we
Agreement Bind the
British to Our Trade Phi¬
the fact that
ever,
fered
the
here
losophy?
Following the announcement of
disliked In the UK.' How¬
are
British
tainly not
the
has
resulted in
had
cer¬
evi¬
from
any
Dec.
had
6
agreement, a London
correspondent of the N. Y. Times
reported that the British felt they
settlement
discussion
under
the
have of¬
we'
the
Does
do
we
some
in
success
toning
dence of good will toward us
the British.
Rather the reverse.
down the demands of the United
States for an end to empire pref¬
The only result of our doing noth¬
ing for the British meriting? our
study is how we would get along in
scaling down of the
"sterling debt." The correspondent
added: "On both points, however;
the kind of world such
the British Government has made
would make certain?
and
areas
America
it
world of
This
decision
blocs.
a
clear
ments
a
that
specific commit¬
no
in the present
made
were
answered.
multilateral system.
agreement."
the British
the agreement that the answer to
the above question is "no." Prob-
has
We ask for
To
decision
a
and
erence
already
a
abandon
now
It
to
tneir
their own devices would certainly i
wo uiu ucnamv
doom the BW program before ever
it is launched,
♦
*
from
the
letter
of
—
for the British negotiators to
so
i£nc* themselves. .In any event,
th.ey make no hard and fast commitment on this point, although
undertake to do their best
to
bring about the system Ameriseiling
them
our
agricultural
can public opinion is
demanding.
products
on easy credit until
We cannot assume that with the
the world gets more settled and
loan and financial settlement we
we can see our own
way a little
better, and let's see what we are have, cleared the way for the un¬
to get in return." While there is impeded entry of American goods
much sense in this suggestion, that into the British Empire. Even after
after -the dollar pool is ended,
course would leave a cloud of un¬
.
.
-■
.
certainty >' hanging ovpr the pros] ect
for
the
pound, sterling,
.
whereas
the
large credit for the
present at least bans such a cloud.
The
tive
trouble
course
too
J'ate.
tive
the
is
now
Just
branch
lead
brink
with
of
the
nation
of
war
that it
the
as
alterna¬
any
comes
administra¬
country
to
can
certain
the
by the conduct of
foreign policy,
so
it can
maneu¬
financial negotiations to such
ver
a
degree of finality as to leave
Congress little choice but to sign
the dotted line. This has been
demonstrated more than once in
on
there
still the matters of for
are
eign-trader licensing
preference,
nouncement of the financial agree¬
ment
the British order lim¬
came
because of the
nounced
the
as
new
to
members
of
the
have suggested that
gress
Britain be
raised
confined
Con¬
loan
a
to
money
for
the purpose from pri¬
buyers. If this were to
attempted on the basis of the
vate bond
be
low fares
by the company.
amount
British
desire
American
nilly.
to
trade views
must
disappointing
garded
Even
professed
necessarily be
those who re¬
our
to
loan
a
financial
Britain
to
to
means
a
outstanding
so
as
trade
an
a
end.
advocate
of financial aid, indeed of a
gift, to
Britain as Mr. Winthrop W. Aid-
rich put the trade objective first
he said ("Chronicle," Dec.
when
and terms set down in
the Anglo-American agreement of
Dec. 6, the attempt would be a
tend
fiasco,
pan to
because
private
investors
would not be interested in bonds
such
terms
and
escape
with
clauses.
Even
were
there
no
es¬
clauses, a British bond issue
large dimensions and such
cape
of such
low interest would require
mendous
tion which
on
has
Treasury
A.n
effort. One need
the vast organiza¬
been required to
war
bonds.
;
V:
alternative method of rais¬
ing the
U. S.
tre¬
selling
only reflect
sell
a
money
would be
Treasury to put
drive, offering its
the
much
campaign
more
effort
specia
on a
own
securities
public. Even such
selling
for the
would
than
a
bond
one
cte-,
signed to raise money for domes¬
short, whether the attempt
should
be
made to raise the
$3,750,000,000 of new. money for
Britain from private investors de¬
pends
on
how serious
p.
The
London
editorial
are
in
we ex¬
gues
Economist
the
on
agreement
in
an
Anglo-American
persuasively ar¬
very
the: British
view
on
state
trading and empire preference.
After giving vent to its anger at
the prospect of commitment to the
American
trade
philosophy,
the
weekly observes: "Beggars cannot
be choosers. But
tradition, put
bitions
of
a
they
by long
can,
curse on the am¬
the "rich."
The New Statesman and Nation
ends
we
an
editorial thus: "The world,
remind America, has
would
respected
the
Through
the
coming
give
the
goods
,
British
American
The
visitor
J? ®Ptain. ?ets the impression
tha.
the British have
a
long
way to go in readying themselves
mentally for the economic strug¬
gle ahead. Certainly their attitude
in 1919.
interna¬
tional trade conference tariffs and
barriers may be reduced.
on
But
very
ment
trade
if
gives the impression
they have grown used to a
siderable
lantic.
ernments
much
there-ic;still the hard fact
Americans
cake
apd
fact, when
buy
which
Russian
not
need,
gold
we
help
even
munist government. If
we
we
a
we
do
com¬
are
go¬
want
eat
it
to
that
have
business
here
but
now;
do not
^vei* wapt to make it possible for
our
debtors
to pay us off
their goods and services.
with
Will the UK Come to Us for More
*
Help Later?
Probably." If
r
as
seems
our
contacts.
erick
Some argue thbt the loan will
help Britain speed up the process
of socialism, it
might be argued
at least as convincingly4hat the
reverse is true, that the loan will
still in
the American
hands.
When
other
"Smith
of
countries
United
economies,
Ohio, is that
"forcing" the
are
$ttaes "to
not
y
the
RFC loan is all
paid off, as will be
made possible
by this new and
'
.
much
larger loan, that security,
which has since
greatly appreciated in value, will»be
released.
Senator
Moore
of
Okla.,
who
states
that
the
British
have
';t\
.
i
an
equity of more than half a billion
dollars in that
collateral, argues •
that it be liquidated
outright now. f
(Dec. 6, Cong.
new
above-mentioned
is
not
RFC
collateral
Those Britishowned American securities
could
continue to serve as collateral
necessary.
:
against the new .loan. If the prin¬
ciple of collateral was sound ' in
•
1941,
it
would
to
seem
be
just ;
sound
today. The assets could
be pledged
by Britain, without depriving that country nf the in¬
come
-
therefrom.
Could
the
British
Not
Pay a
Higher Rate of Interest?
On the basis of
published in¬
formation, it is unlikely-that
they
British could pay during the next
few. years more than
they have
•
;
contracted to pay, without tight- :
ening their belt; and- the main
•
purpose of
them avoid
the
loan
is
to
help
tightening their belt,
-
to loosen it.
underwrite their
temporarily,
but
permanehtly,jandspcialisteconpmies at that? If Britain is fin¬
higher interest
pay
say as much interest
ican
Treasury has to
ratte
to
or
waived
so
-
•
*
the Amer-
,
pay, there is
adjust
the
to make up for
interest
•
.
pble to
this loan,
on
as
in the present agreement
vision
no
pro¬
interest
previously
instalments.
ished
as
off socialization of
a
top-rank economic Is the Loan Inflationary?
private
enterprise in Britain to some ex¬ power, but in a position of topSince we are
running a deficit
rank political and military
tent. However, it is
impor¬ in this country, the loan of. course
noteworthy1
that even in Britain there is a tance, we may indeed be com¬
will .add to the .deficit. The di;
mitted to repeated support of'the
school of thought which
opposes
rection of the loan is therefore inalbeit
the American loan, and would still- UK
on
grounds
which flationary. It does not
follow from *
oppose it if it were made as a gift, strike the American public as in
this; that the loan is politically ;
because "through its
psychological their own interest.
undesirable.
stave
It
is
doubtful therefore
wedding
American
trade
velop into
a
of
that
a
British and
views
will
itself
it
does
not.
loan
the agreement cite the 1922 Ford-
encourage
Is Great Britain Broke?
i "Business" Loan?
Strangely missing from the
;
rent discussion is
cur¬
trustworthy in¬
formation
on
the UK's creditordebtor position. Perhaps the rea¬
son
is -that past propaganda on
^Y&ile;interest
and
'•
amortization^
are
ordinarily attributes of a busiloahy this is va:political loan. ^
Many people on bpth sides of the
•
ness
,
■
ocean
doubt that it will be re¬
subject
has
satisfied
the paid. The
specific and general es- ;
American public on this score.
cape clauses in the agreement are :
Does
Not
This
Loan
Finance Certainly the data heretofore pub¬ not
"business"
clauses.. While
British Imperialism?
lished leave something to be de¬ Amer
businessmen favor, the-"
Certainly, anything which sired. There is at least the suspic¬ loan because it will make business
ion that the British have over¬ for
strengthens
Britain's
hand
in
them, Britain's need for im- ;
carrying out whatever policies the stated their need. For example, ports,
now and iri volume, is; the
British have.
after the British Chancellor of the main
Some
Americans
reason for the loan.
Actually, y
think that we should withhold all Exchequer had informed Parlia¬
thb British demand for goods here
aid from the British until
ment that the UK still had left will
coincide with long-pent-up
they
more than half of its prewar for¬
free their subject peoples,
domestic demands.
give up
Hong Kong, withdraw from India, eign investments, Mr. Jack WinoFrom
this
country's
selfish :
etc. Col, Robert R.
propagandist
in
McCormick, cour, "-British
standpoint, it would be better to ;
publisher of the Chicago Tribune, Washington, informed a Washing¬
have foreign demands for our
was quoted in the
"Chronicle" of ton audience that only about a
goods come after the domestic de¬
Nov. 22, 1945 as
third of Britain's prewar invest¬
suggesting cer¬
mand
has
been
satisfied.
The
tain ^ political
ments remained. During the ne¬
conditions
which
British fear, and with
justice, be- R
this country should insist
gotiation of the Anglo-American
upon be¬
ing. tied to the swings of the
fore making the loan to
Britain. agreement Lord Keynes admitted American"
business cycle; yet this
These cond itions include the abo¬ to an American negotiator that
loan, along with others made by :
lition of "slavery"
the original British request had
1945,
p.
2891.)
this
,
,
*
.
among rubber
British (and also
French colonies), and
plantations
in
Dutch and
liberation
of
and
the
near
British
colonies in
Caribbean Sea. It
is fnost doubtful that
we
could im¬
these policies on the; British
merely by withholding the pres¬
pose
ent loan. To do
so
would in any
\$ork counter to the
purpose
case
of helping maintain
tion in the British
Britain
Does
draws
*
a
strong
strength
from
as
its
our
Countries?
course
recent
higher than the British
content
to
take.
were
While
one
cannot blame the British for such
tactics, they leave
a
question
as
to just what Britain's needs really
are.
Should
British
Holdings in the
Be Liquidated
V;
United
;
Before the Loan Is Made?
States
erable
form
owns
American
of
vestments.
very
and
and the ;
.seems '
pression. It whould be ironical if,
boom ends, this coun- *
try should be sometime subjected ;
to another bombardment of Britj,
when the
ish vitriol
now
consid¬
in
assets
securities
Export-Import Bank
coming BW. organizations,
destined to accentuate this coun¬
try's problem of boom and de¬
as
a
result
of
having
Should
the Loan to Britain
Decided; Alone, or
Only
the
direct in¬
Conjunction
Naturally, the British
it does. But does not
loan
to
Finland help
want
to hold
on
to
those
invest¬
ments, because of the continuous
income
derived
therefrom.
That
With
be ;
in
Loans
to
Others?
Some
Americans
have5
,
con¬
tended,
even before ratification of
the BW program, that we should
undertake the
program
of
not
income
British
.
will
tend
to
servicing of the
facilitate
present
loan. Such assets might be pledged
■
helped the British.
,
!«r
•.
the Loan in Part Help Pay
Britain's War Debts to
Other
Of
the
been
now
Britain still
na¬
Isles, insofar
Off
Various
on
will
inefficiency; through
idleness
and
inefficiency." (As
reported from London by Paul
Einzig in the "Chronicle," Dec. 13,
Empire.
happy marriage.
commentator articles
the
its material effect it will
disguise
for a while the
consequences of
de¬
Does the Agreement Remove the
Causes of Empire Preference?
news and
effect
idleness and
financial aid to other countries
by
bits and pieces. However, we have
already
.
Record.) However,
standpoint of security of
loan, liquidation of the
from the
the
likely in but rather
ing to do business with only those
countries having our poltical and as
stated to the "Chronicle" of
economic system, we shall
greatly" pec. 13 by Representative Fred¬
reduce
then"
securities,
are
Government's
However,
long .run this loan and settle¬ it is
beyond anyone's power, to
ment" will not suffice to put the
foresee what conditions will
preUK on its feet, the British will
vail" bfter the first few
years.
be back again
someday looking Should Britain at
some time
in
for further help. One
viewpoint, the next 55 years become
the
;
their
too.
They want
to
help^Britain generously, be¬
cause to;do, so will make
export
socialist
more
than the British. In
pledged
as
giving the British the
benefitaOf the doubt on this point,
ber tariff. Unless we make
greater
tariff
concessions
than
do
the
Yes, it helps finance a socialist
government. But then, we have
helped and*are helping other gov¬
con¬
economic
~
not be any better
off, relatively,
than before the
Fordney-McCum¬
Does Not the Loan Help Finance
Socialism in Britain?
of
measure
that
support from this side of the At¬
may
British, the latter may be justi¬
fied in citing "the transfer
prob¬
lem" as a reason for not
fulfilling
the agreement just
negotiated.
the cancellation of Lend-Lease
on the new financial
agree¬
and
reduction
follows
the
American Trade Agreements
pat¬
tern of matching concessions
by
this country with equivalent con¬
cessions by others, Britain
merchant
who evaded paying the
pound of
flesh."
•
Of
we
wanting Britain to get this
help.
2890): "The aid
bring about full participa¬
tion in such a system." -
shotgun
tic purposes.
In
13,1945,
should be contingent upon
the adoption of measures on her
always
require
was
and
principle of. requiring sea loarv was
incorporated
,
an¬
Much
support at this time, they clearly
do not regard their position as so
weak as to require the subordina¬
tion of their policies to ours willy
commitment
Should the Money for Britain Be
Raisedl from Private Inves¬
tors?
This
1898
our
:
the RFC ldan made to
Britain
before the United States
entered
the war.
Dollar
.
iting the Pan American Airways
flights a week to London,
to two
The evidences of lack of British
recent years.
Several
and empire
Almost coinciding with the an¬
v;
introducd.
Canada in
services
„
clear
ably it. was politically impossible
Are there any other alternatives
before us? Mr. Jesse Jones says: \
"If we must continue to help the
British temporarily, let's do it by
is
competition which
and
prosperity for all. The London
Economist, according to cabled re¬
ports, argues hotly that it will not.
nothing and leave the
British to struggle along as best
they can. we will make sure that
to
the
became
Revercomb's article, "Britain
If
.
and
A
Must Be Generous, Too," in Na¬
tion's Business, Jan.-1946.}/
Is There
no assurance.
willing to make for British goods
services in this country and
treaties
Belgium and Germany.
year
,
security is
no
curity for
on this score.
Much depends on
Britain's ability to snap out of
its often antiquated
ways of doing business. Also much depends
on
the markets which we are
the
as
security, for the loan. As the
agreement'
stands,
contemplated.
in
Of this there is
j
as
The
To cite the Fordney-McCumber
Act of 1922
adopted
possible for empire preference to
man
.
American businessmen in Britain
and others have
expressed doubt
termination
tion of the American commercial
system pre¬
until
Britain
whether the adop¬
as to
.,.y
..
im¬
having
perial preference.
a
large tempdrary outflow of goods
services
from
the
U.S.A.,
there seems to be a difference of
wotnan convinced against her
Act
for
reason
'
follow
A
ney-McCumber
Permanently Expanded World
„-OUp
vW
in Britain which does not want to
r
~
-
want .There
jr
Will This Agreement Enable Britain to Get Back on Its Feet?
Anglo-American Agreement?
'
VA.VXJv\.\y/„•••';
tha: country pay reparations to
Russia?; The basic question is, do
we want to
help Britain?
embarked
on
the
piece-
\
Number 4452
163
Volume
..
Changing Trends in Investment Banking
from 30% to 42%
material ef¬
fect has been the drastic reduc¬
ness.'
(Continued from page 4)
amount of external competition it
encountered was not too signif¬
obviously
An
tion in
'
'
high grade securities,
but jthis result is attributable not
only to the competition promoted,
for
Current
Trends
interest here
changing trends
banking
operations!
especially as regards competitive
factors, there is no need of getting
involved in
the
a
recital
or review
of
with which the industry
familiar.
-
,
Government
l
and
an
estimated
compared with 19% in
1937.
The ; Government
bond
drives have been a factor in war
1945,
as
also
factors
to
such
as
"
!
® >, ' •• {
Intervention — In
carrying out the objective of ade¬
in the business accruing to
disclosure in the issue and
securities, Government in¬
tervention in -and regulation of
.
quate
indij-
Soliciting Business—While com¬
bidding has practically
houses, with a
few firms winning accounts which
banking
vidual
sale of
petitive
eliminated
most
values
accruing
they did nofc formerly have and from the long-established banking
others losing,, long standing ;; acr affiliations : with!- railroad
and
ardization of securities Z and , in counts. Also, noteworthy, a few utility corporations, no material
corporations have had the experi¬ changes have, yet occurred in the
wider dissemination of trade prac¬
has also re¬
trend towards stand¬
the
are
fancy
words
Britain
tlements
out in confer¬
in the Government
people
representa¬
to
Money the
sale of
Victory Bonds and money it cre¬
ates by borrowing from the banks
has to be made good in the long
run by taxing the property, busi¬
people in taxes.
man
of
incomes
and
Aside
the
from
which have
affiliations.
active
This
to
ap¬
parent fabsenCe; of direct compe¬
tition for industrial accounts may,
lend
and
afound and not rely
has
she
fices
during
made
the war.
■
Britain held
for
fort
the
democracy
we
sums
abroad
some
billions, and the end is not
yet. The British loan is a sample
$20
of the unbusinesslike methods we
p r a c
Taylor
Glen
Sen.
*lone
t.
.
t ically
for a
Her people suffered severe
privation for years and the end is
not in sight unless this loan is
granted.
*
■
.<
I believe that the business ac¬
year.
however, change in the future if are employing.
In return for a tivity generated will more tha%
full evaluation is given to the ad¬ British IOU to
pay us $(650 million compensate us for any loss we may
vertising programs now being pur¬ in 55; years, we wipe the slate
sustain.
'
sued by some large banking firms. clean of some
$25 billion of lendOur private enterprise or capi¬
The very act of advertising con¬ lease
goods and surplus property, talistic
economy
is, I believe,
stitutes a breaking of past tradi¬ 'We have not even had a business¬
headed for a crisis more grave
tions, but more significant is the like
accounting
of
lend - lease than anything tha^has gone be¬
implication therein that industrial transactions or an inventory of the fore.
..!
tendency among some corpora¬
tions to shop
sacri¬
great
Competitive
bidding has, iii
instances, invited' external
^exclusively on established banking competition from - life insurance
companies and even commercial
affilations.
While Government domestic fir banks, but the amount of such
business thus far < lost by invest¬ accounts are now being solicited surplus property we are surren¬
dancing operations cover a wide
ment bankers has been moderate. impersonally
regardles s
of dering.
range, current thinking generally
With the sharp reduction in un¬ whether they have banking affili¬
The interest rate of 2% on the
is that it should and wilt be con¬
ations. The result to advertising, larger loan of $3,750 million is a
fined to marginal risks which are derwriting spreads, life insurance
companies particularly do
not Whether by newspapers; maga¬ deception because ho interest is
beyond the»province of private
find the possible savings in price zines, or booklets, is bound to to be paid for six years, and we
capital. In the foreign -field, the
JExport-Import Bank, an example (through direct bidding) as at¬ stimulate, in time, further internal promise to waive interest pay
elements competition, and may alsolead to ments after that if Britain finds
of such thinking, is to be supple* tractive* -compensating
mented
by
the
Government's being advantage of marketability the extension of professional serv¬ it too inconvenient to pay. I wish
and also smaller acquisitions of ices to industry by banking firms
American farmers, the small busi¬
large financial; contributions to
individual corporate issues.
in the role of business counselors ness man, the home owner, and
! the agencies created und er the
Bretton Woods : monetary- rg-C>
Competitive bidding for indus¬ and coordinators on major and the veteran who risked his life for
overall policies and problems! s
his ' country !could get - loans on
$ments.$ Thus, with presentlyfa¬ trial securities :does not seem in
t" :
vorable i business
prospects, ^ in¬ th^ immediate offing, because no
Operating Elements—The com¬ such easy terms.
All we get in return is Britain's
vestment banking need have little Government > legislation
appears bination of favorable price trends
concern about encountering unde¬ likely or necessary to. compel such for securities and unfavorable tax
promises to do what she can to
4
sirable competition from; Govern- procedure.
Moreover, financing aspects ort short term profits has limit exchange and- trade restric¬
resulted
in investment bankers tions in the Empire and to help us
ment financing.
problems of the many diversified
I
Competitive: Bidding—The in¬ industrial companies do not readi¬ taking "investment underwriting expand world trade- America, as
auguration of competitive bidding ly lend themselves to such uni¬ .positions" so as to obtain long usual, delivers cash and goods on
the barrelhead; and our debtors
I for utility and railroad securities form treatment as do the railroad term capital gains. This operation
I
in June 1941 and June 1944, re- and utilities.' Significantly, how¬ has its pros and ; cons, depending give us IOU's and glittering prom¬
a
ously
because of the
business¬
vast
spend
treated
be
gen er
the farmer,
manufacturer, the
and the worker.
Brit¬
Great
Government gets from the
practice of not solicit¬ have already expended in foreign
ing business directly from indus¬ countries, we are now committed
accounts
govern¬
ain is entitled
established
banking
of
two
money
can
the
tives
ments.
to loan but that which
it must take from all the Ameri¬
no
the
by
ences
not yet realize
do
re¬
cently worked
that the Federal Government has
the
trial
and
releases cannot obscure the
underlying realities - of what is
now being proposed.
Our
from Idaho
the loan to Great
the Lease-Lend set¬
press
ness
profit v margins of the ence of ; being adequately served
underwriting business to the in¬ by more than one banking firm on
different issues submitted for com!
dustry itself and to its clients, the
corporations. Such a situation is petitive''bidding, and the net im¬
the basis for stimulating increased plication here is that merchan¬
internal competition, already evi¬ dising or underwriting operations
of high
grade* corporate issues
denced in; the growing number of
have become fairly standard and
firms
engaged in underwriting
activities, and also for promoting organized procedure.
(D.)
Senator
S.
I shall support
new
Investment banking
and
By HON. GLEN H. TAYLOR
U.
repeating the same thing
formulas, and all the
under
sulted in a
tices
Support the Loan
costly failure.
that
of
lesson
We
Shall
I
(Continued from page 2)
European countries, the foreign
exchanges collapsed and depres¬
sion spread over Europe.
There
is nothing in our present opera¬
tions to show that we have learned
.
historical .; events
is quite
pertinent
1944
1938-1942
in¬ years!!!!?!
As a partial but practical offset
creasing standardization of secu¬
rities bid for as well as bidding to the loss of business to external
procedure, and to the growing competitors, investment bankers
increase
their
professional
tendency of utility and railroad can
corporations to indicate the ap¬ services by more active co-ordina¬
proximate price which would be tion of the various capital require¬
acceptable by stipulating a max¬ ments of corporations from the
imum coupon or putting a floor three major sources of funds, viz.
life
insurance
on "discount prices." 1 *
companies, com¬
\ Viewed ' internally, competitive mercial banks, and public inves¬
bidding has produced some shifts tors at large,
but
Since the primary
is to appraise the
! in investment
1943
20%
and
during
'31
:y
Senatorial Reactions to U. K. Loan
de¬
clined to around 26% each in
profit margins on strictly
operations,
espe¬
that its internal
cially for
competition lacked vigor.
icant and, finally,
of all corporate
and
issues
underwriting
Factors Influencing
.V,,.......
THE COMMERCIAL & FINANCIAL CHRONICLE
,
some
.
,.
.
that have
"caused previous breakdowns are
with us in greatly exaggerated
All
factors
the
of
proportions:
'
producing in greater
Machines
.
quantities
with less 1 a b o r
••! • needed;
^
\
' "
Industry unwilling to accept
a low profit and pay high wages
'
!
the masses can buy the
:
so
?M' produced;
A
goods
" '
staggering interest load to
T
carry;/'
,
ever, a
spectively* constitutes th§ mtftivating force wheih already has and
will continue to bring about
•
:
£
clared
meal approach, and indeed
it is
York Stock Exchange regulations
permitting corporations to become
members, may eventually lead to
a much greater number of invest¬
ment banking firms being public¬
ly owned as against isolated cases
today. - In such eventuality, in¬
vestment
banking
corporations
will have at their disposal much
larger aggregates of capital funds,
thereby imposing greater respon¬
sibilities and risks, but also in¬
creased opportunities of serving
,
conceive how we;
"
'
■
'
view of the fact that the Govern-
v
ment has been engaged in
ing''
a
%seli^
not altogether willing pub¬
lic oh the successive credit: proL grams, this is understandable.
\
cial banks comprise
the two prin¬
cipal external competitors to the
investment banking industry.
Since these two groups of institu¬
.relatively, tremen¬
resources, investment bankers can do very little,
Devalued?
■
If during the life of the loan if anything, to meet such-direct
Suppose That Sterling Has to Be
tions
possess
dous
financial
t
,
devaluation
:
of
sterling
the particular factors in each
prepared to submit bids on urge for long term capital gains
proposed, offerings of, industrial is a potent stimulant.
securities, but nothing has devel¬
The foregoing element, together
oped ;along: these lines, because with the likely change in New
industrial corporations can and
could still prefer to exercise their own
: have, done otherwise* unless by inprerogatives in making banking
; viting the countries of the world arrangements. If competitive bid¬
"to be our guests at a full-dress in- ding iorlindustriai secmiii#
iemational financial banquet;
materializes, it will more likely
While on the one hand it is very be brought about by internal com¬
f
difficult to. make an estimate of petitive factors rather than., by
the outside world's total meritorGovernment legislation, and prob¬
; ious needs from us, the 'Adminis¬ ably be limited to issues of lead¬
tration has at times shown less ing corporations.
than full, frankness in unveiling
External Competition—"Lite in¬
the picture before the country. In
surance companies and commer¬
to
hard
upon
few months, ago that it individual firm/Nevertheless, the
occurs
| without a corresponding devalua§ tion of the dollar, the burden of
'
price competition on funded debt j further conversion of closed cor¬
porations into publicly : owned
securities. The extension of term
units,
together * with favorable
bank loans to 10 years
.
•
f.
<
to
increase the likelihood
of de-
bankers.
:
which
somehow
them.
It
would
be
In
view
of
the
seeming
to
f
.The effects of
sterling
cannot
r
this space. They
4,:r
by
a
devaluation of
Aside from rate advan¬
hardship
may
on.
have
Britain to
give us concessions on
bases which would strengthen our
national defense, on communica¬
tions to aid American air trans¬
are
the * economic
in
which ensue, as well as by other
V- currency devaluations which the
devaluation of sterling might set
>•
in
motion.
:
r
Under
the present state
program
for developing and serv¬
icing accounts. On this level, prin¬
equity financing is the
cipally, will the competitive forces
complicated only category in which investment within the investment banking in¬
bankers will encounter practically
adjustments
dustry be waged.
1 - i
.
discussed
be
curities.
.
•
no
outside
,
competition,
save
in
exceptions, from large invest¬
ment : trusts.
Corporate security
few
issues
placed privately
comes
it
may
,
The best
no
crisis
calamitous nature as
provoke violence. I forsee the
of Fascism or dictatorial Com¬
munism.
'
I hope for is that we
follow England's lead and
a peaceful transition
to an
economy
;
monopolies will
in which
be socialized, at the same /time
maintaining a wide range for pri-
; vate enterprise to continue, and
port, >and to agree to ship us, '
preserving our democratic form
within the next ten years, many"
of Government.
of the strategic and industrial raw
Those who profess to love pri¬
materials we need and
she;
trols.
She.
con¬
securities
has
It is
other assets.
more
and
to I Brit¬
ain's interest to free the exchanges
and expand world trade
to ours, yet
vate
enterprise most are
bringing
themselves* Congress,
by refusing to support such meas¬
ures as "The Full Employment"
bill—Minimum Wages, etc.; indus¬
this
upon
:
either for the peace of the world
or
for the'welfare > of the Ameri¬
can
people.
ment
,
'
banking,
<
while
external
competition will probably increase
The
field
of
providing
equity
capital now constitutes almost ex¬
constituted clusively the province of invest-
bank
earnings,
that investment
develop
other
so
it
is
banking
profitable
possible
can
also
income
from advisory services to corpora¬
tions
on
major policies involving
and
economic judg¬
investment
ement.
loan
I feel that it is a
because
method,
devi¬
somewhat
albeit
of laying a little more track
and of giving us a little more
time to think.
Perhaps before it
ous,
tages, many
of affairs,
a
seem
never
*
i:
the
rise
corporations prefer to j turiities for the next few years, in the, sale of corporate funded
i The extent to which each banking
debt securities.
weakness
of Britain's
economic deal directly with life insurance
firm can and will avail itself of
position, both relative to what it companies and commercial banks these
Just as commercial banks have
opportunities will depend,
was before the war and in relation
on their funded debt capital re¬
however, on the efficient organi¬ developed related financial serv¬
to that of the U.S.A., devaluation quirements, so as to eliminate the
zation of its personnel, together
ices which provide a relatively
of sterling during the life of the
expense,
delay and trouble in¬ with a constructive merchandising
important contribution to total
volved in a public offering of se¬
loan is quite possible.
-
fault.
\
When
be of such
than it is
merely by promising
nothing more than to try to do try,by maintaining that profits
those things which greatly bene¬ and wages bear no relation to each
other.
^
fit her own interests, she obtains
Our great industrial machine is
the righttodrawoh the: Ameri¬
industry.
can treasury.
The rails on
Other countries will thundering ahead.
which it runs represent purchas¬
ask for similar privileges, and we
Summary Comments
shalT drift into the fatal mistake ing power. The ties that form the
The forces of technological ad¬
pf making political loans through¬ roadbed are the millions of con¬
vances, extension
of integration out the world. It is extremely sumers. Shortly the track will not
process to
industries still com¬ difficult to see the benefits we support the engine.
'
posed of / numerous small units, get. put of such., - arrangements
I
am
supporting the British
represents
, business prospects,
seem to offer
the loan debt will tend to increase another encroachment on debt the investment banking industry
correspondingly. This would tend capital financing by investment i as a whole constructive oppor-
,
ises
there will be more
goods produced than there will
be purchasing power to consume
to be made good.
was
changes in the complexion; and
competitive aspects of the busi'
,
banking firm publicly de¬
a
!; Shortly
is too late the
owners
of the en¬
gine will realize that an engineer
to look ahead might be a good
idea.
be
The
engineer's name would
"Planning in a Private
prise Economy.'' -
Enter¬
' '''
Now Cayne
& Co.
CLEVELAND, OHIO—The
firm
Ralston &
Co.,
name
of
Cayne,
Union Commerce
bers
of the
change,
Building, mem¬
Cleveland Stock Ex¬
has
Cayne & Co.,
been
changed
effecllve Jan. 1.
to
THE COMMERCIAL & FINANCIAL
32
CHRONICLE
Thursday,- January .3, 1946 7
again takes much
The First Constructive Peacetime Year Begins
the
(Continued from page 8)
declined
from the
high point but
have remained far above normal.
held
has
of Business
Index
LaSalle
The
Volume
above
every
is currently
This index i*
based
-on
banking figures
and
shows the total amount of busi¬
month
last year and
2%
about
higher.
financial
and
ness
carried
it
can
should
Consumer a'ttitudes
reconversion have
To
keep
v
prices
been
,
when most items of cost are much
may result in fewer goods
available and-thus in the
make the inflationary
pressures
even
stronger
and
higher
phases of economic activity.
Somewhat higher prices account
goods
ob¬
best
duction
increase
the
of
over
while retail sales have
been running about 10% higher.
Increased
spending for services
and other intangibles as well as
ago
year
is
-for
in that direction.
now
The
a
kinds
and
rates
7
.and
trade
and $ the LaSalle
30% below what it
greater
index is
now
affect
business.
They
change the distribution of current
income and thus may modify the
amount of; purchasing power for
different types of goods.,
Taxes
greatly
and about 35%
The trend has
gradually down since the
latter part of 1943, with a sharp
drop since August. Even after this
decline,
however, factories? are
turning out 60% more goods than
was
a
ago
year
the
below
peak.
been
-
'
-v
"t the
of the four prewar
at about the same rate as
average
years or
'
in the
other
summer
of 1941. Soon many
plants will have completed
change-over to peacetime
their
production; and be /ready to in¬
crease their output.
,
.
Dominant Factors in 1946
_
<
conflicting tendencies and an
appraisal of the relative strength
of
is
needed
estimate
to
likely to take place in the
future.
Some
of
the
tendencies
boost business while others retard
Business
is
sion,
relieved of the excess profits
now
them
what is
it and the outcome of this tug-ofwar is either prosperity or depres¬
curtailed.
be
of
of the
goods, activity and employment
must
the result
are
purchasing
power,
both actual in the form of current
rates will be lower than they have
income and potential in the form
of savings, is the strongest force
making for increased business ac¬
tivity. It exerts pressure on prices
and, for
many
been in recent years.
is
stimulate
to
If the effect
business
volume,
they may increase governmental
that are
revenues
nance
needed
~
to
fi¬
the huge national debt and
to meet
the large volume of ex¬
penditures' that
are
Another
being
still
maintained.
■
and
also
can
?7
employ-
found?,work, elsewhere 7,;,
77
Unemployment- is
now,estimated at around 1000,000. 77
by businessmen
be
solved
economies
from
or
the
market
production for if provides
for the goods which
factories are turning out.
Con¬
sumer incomes have declined but
long
in
a
Another deflationary force /or
tendency is the result of malad- ;7>
justments
among ;the, different
sur^
which
result
however,
run,
higher
be paid only through
increased productive efficiency or
higher prices.
wages
still much higher than
are
ahead in
look
we
at-
an
of
can
Government spending continues
those of normal peacetime years
Income payments to all individ¬
to be
high and will probably re¬
main so during much of this year.
attitudes.
consumer
eral
years
ditions
which / would,
greatly
hamper both industrial production
and business% volume.
Such dis¬
tortions have been followed by
depressions .in the past and, if al¬
lowed' to go too far, can do so
This
brief
summary
of
the
forces now at work
provides a useful guide for evalu¬
ating - gurrent trends in general
business and in making an esti-?
conflicting
consumers
_
-
■
'
-
,
going to be de¬
before. Some estimates place them
much* by the; de¬
weir in "excess7 of $125,000,000,000.
according?; to? the
This amount includes a large per¬
requirements of military - cam¬
centage of the government bonds
paigns but by the relationships
which have been sold to'the pub¬
among costs, prices, and demands.
lic and which can be turned ? in
If these can be kept in proper
termined, not
cisions
;
so
made
.
balance
that
so
income
the
of
business will be enough to cover
all costs with a suitable margin
to
invested
and
provide adequate profits, a high
level of prosperity can be main¬
conserve
capital
tained.The
*
11
major uncertainty is: that
associated
with
the
disputes be¬
tween management and labor, not
only over wage rates but also
the
over
*•
thority
of
of
ment
relative
each
labor to have
of
the
in
the decisions
as
au-
manage¬
business.
the
of
scope
Demands
greater voice in
to prices,
profits,
products to be turned out,
plant
location, and other- items may
handicap management in many
ways.
If strikes in key industries
are
long
extended,
production
would
fall
rapidly and everyone
would
have; r less. ? Constructive
leadership by labor leaders, busi¬
nessmen, and government officials
is needed to keep
business ac¬
tivity high.
7,?
7, 7 7flv~-7f
,
.,
Government touches business at
so
points
that
its
policies
by the
businessman when he is planning
for the future. These policies in¬
clude not only expenditures by
governmental agencies but also
many
forms of regulation
and
control.
Although in time ad¬
justment can be made to almost
many,
must be taken into account
.
at once for full value.
ation
has
That situ¬
not
prevailed before,
as
in the .last post-war period
government bonds could be turned
intOTcash
pnly^by seUihg^them at
than
leSs
full
tended to deter
value.
That
fact
selling. Now,
however, the consumer suffers no
penalty if he decides to cash his
bonds. Any attempt to forecast
what will happen is e*treshiely dif¬
some
The effect, of these
comes and savihgs was
the
holiday buying
large
wheh retail
•
Will people spend their savings
in order
The desire
will undoubtedly be very great for
automobiles, refrigerators, radio,
electrical appliances of all kinds,
and 'other types of cohsumef dur¬
able
goods just as soon as they
the market. If everybody
for these goods at
once, the scramble might easily
boost prices in spite of price con¬
are
on
starts bidding
trols.
It would lead to
an
exces¬
future after the present backlog
rise in the index of commodities
of demand has been at least par¬
at wholesale
and
by the marked shift toward
the
purchase
items
rather
of
than
higher-priced
the cheaper
Yet the physical quanti¬
grades.
ties of
Estimates of
a
few months
to the volume of civilian
goods production during the latter
part of last year have not been
ago
as
appeared in any substantial quan¬
tities, although when they do start
they are likely to come in a flood.
Much of the
volved
uncontrolled boom.
of goods isv not
evident at the
time but the results will be strik¬
ing
when
start
the
production
lines
operating.
prevent
that
other
the
have
wars
done
extreme
been
and
much
to
price
rises
associated
with
during the early
post-war period. While protecting
industry may hestitate rather
than
spend freely even though
they
saved.
have
substantial
amounts
The effect of hoarded
ings might be
sav¬
substantial decline
111
business and reduce purchas¬
ing
much
sooner
than
many
people expect. Recognition of that
possibility should be a part of any
planning for the future and con¬
a
paid
for
services. Scarcely half
was paid for by taxes
that amount
taken from business and the pub¬
Some of it was received
lic,
by
the
goods
on
delay in getting civilian
the market. Many plants
handicapped
by > lack 7 of
workers in spite of the fact that
large numbers of employees in
were
war
plants
new
hestitated
were
jobs.
about
much of it
such
a
being
laid
off.
Many workers
taking jobs for
is not
enough to offset the decline, na¬
it
purchasing
power
Outlook in Leading Industries
Unemployment has been rising
for several months and it is likely
to be
much larger this
spring.
Not only have workers been laid
off from the highly paid war jobs,
but
of
looking around in an effort to
get 1 the highest paid jobs that
could be found.
plants have discovered
getting
production
going
also
men
and
military forces
turned to civilian
close
to
women
are
re¬
life at the rate
1,000,000
a
month.
retiring,
women
are
returning to their
homes, and young people return¬
ing to school, but the number
leaving the working force is not
Many
workers
.
great during the last few months.
The largest declines have been in
transportation
equipment,
machinery and chemicals. The drops
are
*
in many of the
plants have been
great enough to cover the cancel¬
lations of >war contracts and some 7
increases
civilian
be
can
goods
expected
as
produced. The
quick rebound of the steel indus¬
are
of capacity iiii Au-
try from -60%
,
gust to 83% is
of what may
lines.
a
typical example
take place in many*
•
-
^
;
Production has been increasing
in such lines as textiles and print- .;
ing .whose output was restricted' 7;
during the war. Output this year
may exceed that of last year al¬
though the recovery in the textile
;A
industry may; be slow,7Consump-?T77i
tioh of cotton has been averaging 7?
about 10%; lower than a year ago,
_
7
,
but
as
more
labor becomes avail- 7
will be able to 7 7
able? the
? mills
their production. In spite
up
small cotton crop, enough is
available from storage to keep the
of
a
mills:
the
going at top speed to meet
shortages,? of cotton
,7
present
goods;
77:77?-7
77 ? j
?7
"
7? ? ' ?7
The building industry has been
from
being
;
"Variations among different in¬
dustries
have
been
unusually
speed
the wartime level.
of
course
Last year
around
$156,000,000,000 and
may not total much over $125,000,000,000 this year. Incomes of
many people will be reduced from
was
They followed the natural
receiving.
com¬
shift cannot be made because
consumer
the
Many
taken from
institutions,
where it represents the expansion
of bank credit. The problem fac¬
ing business now is to find enough
private customers to make up at
least part of what government has
been spending. To the extent that
which the pay was much less than
what
they had been
that
was
individuals, but
tional income will fall.
Several factors have accounted
for
On the other
preliminary work in¬
producing new kinds
in
...
.
-
mercial banking
products,
especially
goods lines, have not
the
time
has
.
Peacetime
for the
control
■
borrowing from
consumer
■
7
during the last year.
tially met they will become more The rise in the cost of living may
significant and unless business, also exceed the very slight rise
labor, and governmental policies of the last twel^ months. ?7 7"
are
The stimulus to Increased pro¬
unusually constructive may
become predominant. That situ¬ duction will' probably carry the
ation is not likely to prevail dur¬ index above current levels but.
ing the early part of this year but total; output for the entire year 7
it should be taken into account is hardly likely to be more than
in, any long-range planning.
85% of last year's."
realized. The automobile industry
fell
far
short of its objective.
employment.
Price
ture trends.
goods purchased has been
sive boom which would last until
backlog of demand has been
met and until people have been
fully supplied.
Then the later
slowing down would be just as
drastic.
Depressions have often
started out of the excesses of an
of >
ex¬
period. The total sales last year
were
$74,000,000,000 as compared
with
$69,000,000,000 during ,; the
preceding year. Prewar fcales in
retail stores were around $40,000,000,000. Some of the increase is
accounted for by higher prices
peak about
years.
,
not
are
pected tbibe . excessive/hdweveiv
although they may exceed the 2%?
new
for almost four years?
cent months.
price rises in spite
sidered in any estimate as to fu¬
At some time in the
a
to; get the goods which
they have not been able to obtain
ficult although bond redemptions
have increased somewhat in re¬
moderate
controls;? Price rises
10% higher than in any preceding
trade reached
In many cases these workers did
not have the right kinds of skills
Most of the war regulations re¬
lating to materials, inventory, and
been removed, but
those
remaining are significant.
^con¬
The most striking and dramatic
deflationary factor is the fact that
much greater.
'
business is rapidly losing its big¬
Even though retail sales have gest
customer of the last. few
been large and retail stocks on years. That customer, ithe Federal
hand above normal, many types 'Government/has been buying at
of goods continue to be as scarce the rate of close to
$100,000,000,as
they have been for several 000 a year, including the amounts
kind of regulation, any indi¬
methods have
business need t(^ be carefully
in
hand, people may
be more cautious and, remember¬
cations
that changes are likely ing their difficulties
during the
will be especially disturbing un¬
•years of unemployment and dull
less those changes work definitely
business, hold on to their Savings.
in the direction of helping busi¬
War workers who are not sure
ness
to increase production and that
they can obtain jobs in peace¬
any
Forces which tend to slow down
in¬
evident
.
Indefinitely.7
achieved
when increased volume of output
means less overhead per unit. In
on
the
they
of major uncer¬
tainty in business planning is that
type
have
.
,
Consumer
companies,
taxes
7
but that shift, cannot be continued
ties'
-
Economic trends
77
becomes
classes of workers.7Wages of fac- >7.
prisingly short time. Until they tory -• workers' have'
already in¬
are,
however, the pressure
of creased much more than the
wages
large consumer purchasing power of other classes who must
buy the 7?
on
a
relatively small supply of goods that are
produced. Yet most
goods will be decidely inflation¬ of the
7 pressure toward higher ; •
ary both as to prices and as to ab¬
wages; as represented by current
normal production.
and threatened - strikes, is
among
7 Higher wage rates, unlesc they this
group qf employees.: Much of 7 '
are accompanied by a correspond*
it also? comes from the highest 7
ing increase in productivity, also paid? among of .the factory work- 7;
tend
to
be f inflationary.
They ers. ^age : increases 7for; certain
raise costs and sooner or later will groups may be
higher than can be
result in higher prices if any sub¬ supported by other
groups and by
stantial percentages of employees the mass of*
people whose wages
receive them. For a time; higher or salaries * have- advanced
but
wages might be paid out of re¬ little, Any, serious maladjustment J
duced profits, from reserves which within the wage structure of the
have been built- up in the past, country could
easily produce con¬
Inflationary Tendencies Are
Strong
.
it
ago.v Some of these
year
ees
have been most striking and pro¬
vide assurance that other difficul¬
7
7. 'i&'f
through the sale
met out
be
,
7; 7
■•'■'»•
and
fewer people are at work than* a
government regulations have
results
many
:
-..-■■..■'•y-;'; V;*:* • -7 V,» 'h
flationary, force
For sev¬ uals have declined from a war¬ War expenditures have declined
have been time peak of over $14,000,000,000 from around $8*0 00,000,000
tempt to foresee the course of
receiving much more thai?? they monthly in June to around $13,- monthly to around $4,000,000,000 mate for fhe fufure.. Inflationary
business during this year we can
have been spending. National in¬ 000,000,000.
The prewar average but spending is still, far greater tendencies -are now" stronger
jas ;
rely on the usual methods of eco¬
was less than
come has been rising faster than
$6,000,000,000, In¬ than receipts. The deficit for the both consumer attitudes and connomic analysis to a much greater
has the amount paid out by people comes have thus risen much more coming year may be as high as sumer
purchasing power are in
extent than at any time since 1940
for goods aiid services. 'Asra re¬ than has current factory produc¬ $30,000,000,000.
the direction of* increased buying.
when
war
conditions began to
w
sult savings or claims that h)ay tion, as goods are being turned out
They are?most?likely to. stimulate? have the predominating influence
Deflationary Tendencies Also
at only about 60% above-prewar
production during the next few;?
over 7' all
business
conditions. be," made against production are
?77?7?7;?7 Significant
months • and may- also result in 7"?
higher than they nave ever been levels.
Trends are now
When
:
,
they; cannot
amounts received
of
for
:
,,
stronger the longer, it continues.
In. manufacturing alone
3,000,000
slow down reconversion. 7 In view
of all these many difficulties, the
considerably
levels
prewar
months.
taxes
of
goods has also kept business
volume high.
"
:
y' must be considered by business
Changes in the rate of industrial as part of the cost of operation
production have been consider¬ and when they are so high that
ably
above
few weeks
a
1
Unemployment is.a decidely de-
also been factors which tended to
making for expansion are power¬
ful enough to maintain both pro¬
The trend
the market.
on
taken out within
and
major difficulties that need result
jective is to establish prices that
will
get the largest amount of
The
large enough to offset the number
being -.added to it through dis-»
charges from the military forces.
one
Uncertainties about prices, wages
17„-"7 '
-year,-
time than
volved much
be
in any great reduction in the vol¬
ume
of
business.
The ■ factors
run,
control.
will
more
remove
ducing other types of goods in¬
more time.
77-:;
another of
are
which
to
but working out methods of pro¬
7. This consideration of uncertain¬
ties this year is not a forecast of
being
to
uncertainties
prominent this
levels
1942
at
the
large.
checks, this indicator shows what
is
taking place
in
nearly
all
some
was
be given more than usual
'
for
psychology
costs have risen and the expenses
of
harder
means
public
required
type
of equipment and put in another.
In most places the war machinery
weight under present conditions.
.
of checks.
As most business is conducted by
by
on
of
especially at a time when many
long
transactions
siderations
against high prices,
tend to restrict production,
consumer
is
slowly 7 climbing
low
time
of
awarded
tracts
the
and
war¬
more
than
from
last
year
have
con¬
77
doubled. Shortages of lumber and
many
as
7
kinds of building supplies,
as of skilled labor are still
well
very
acute and will prevent rapid
recovery
for several months. The
,
;
THE
.Volume 163 ; 'Number 4452
for construc¬
long-range outlook
however,
as the demand for buildings of all
kinds is enormous. To restore even
the moderately good housing conmost favorable,
is
tion
editions of the prewar years will
require many new homes and if
the expected demand is fully met
close to 1,000,000 homes will be
needed each
for many years.
The steel industry is producing
about!•: 1,500,000
tons
of steel
weekly or about ^2% less than a
year
$
(COMMERCIAL & FINANCIAL CHRONICLE
With
!
IntercoSlegiate Group
representatives
55
from
colleges and universities present
in
the City College
School of
Business, 17 Lexington Avenue,
Opposes CcmpulsCry
Military Training
resolutions
ing
adopted concern¬
were
foreign
and
policy,
domestic
college curriculum, veteran edu¬
cation ; and intercollegiate AYD
Opposition tov compulsory mili¬
I
tary training and for the alloca¬ organization.
The conference also voted to
tion of emergency Federal funds
to house veterans at colleges was have collegiate members of the
33
college
of
"democratization
and
FIG Banks Place Debs.
appointment of
Negro professors in univer¬
curricula;, and
more
A
Federal
of
Intermediate
Public
under
funds,
advocated
Rights and
,
voiced in
a
set up on Dec.
program
picket lines around
group' form
31! by? the National; Conference of
American Youth for Democracy's
Federal
a
part-time
of
program
Chinese consulates in this country
job aid for students. The intercol¬
Demand for steel from
as'a protest against the keeping of
intercollegiate division calling for
and; foreign buyers will
opposition campaigns with respect United States trpops in China. be sufficient to maintain close to
to! military};training.;The; New
Other resolutions were adopted
that- level throughout this year,
legiate division was set up, as an
year ago.-
domestic
due to
unless the work stoppages
management-labor difficulties in
the industry as well as in those
lines
"using Jarge quantities
of
steel become too disturbing. The
this said:
demanding
dents
-yp i
"
:
promising relief; to European'stu¬
reporting
York "Times" of Jan. 1
''revitalizing
a
elected
was
secretary.
Lee
and
total
amount
debentures
of
ooo.
{■■t
V
-
4.
"
W%
CHARTERED
1 853
vS: v;-*-.w;rU /'£•
Imbft
a-hi;-#v..
some¬
what since the end of the war and
are now around "10% lower than
■
'■;*£?• ■■
'Sh,
•
'";|v
af Nmu
they were a year ago. Production
f
probably;: be ! maintained at
about the current rate during the
will
demand may
next few months and
if many more automo¬
increase
TRUSTEES
.
.
.
automobile industry has
made excellent strides in changing
The
the; plants from-war. to peace
r ; tihless;Work is
i-i
JOHN J. PHELPS
RESOURCES
Retired
by
Clwiman of the Board,
P Sloane
of«aroundM00^ ^ars
by the middle • of the
year. -The industry is expecting
: to come very close 'to: 1941 output
Vol cars and trucks.w. -ducdion
I
a?
>
President;
..
'
r*
!
I I
Other Bonds;
Wilson c> Mdlvaine, Chicego ;
«»'
•
.
:*k - '
'
y 1
¥' I
-
$ AS C I T Yf*
Moi-^An-
•
J
the! United States Navy of Mark
Lucas, Jr. and Leo T; Farf ell,
The firm -will -be - underwriters,
-arid * distributors of municipal i and
J:}
-
:U. %
'■
-
I
>
J5
W,4 Satterlee, Vi ^Presi¬
dents; and Gertrude Faljermeier,
^
|
;,v'C (
;
Secretary-Treasurer.
Mr,
Plimpton
& Page
)
and-
the
Mr.' -Satterlee,
trading depart¬
ment.
Offices
of
the
«
f
;(!
'
■
Stock Subscribed For
F. Cassell & Co., of Charlottes¬
ville, Va., announce that the offers
ing of 6,000 shares of 5% cumu¬
lative preferred stock (par $100)
and 30,000 shares of common stock
(in units of one preferred share
on
the
that
was a
wide
tion of the securities.
distribu¬
EDWIN S. S. SUNDERLAND
Sunderland & Kiendl
!'
Los
gi
*&•>' %
York
T." McCarron
on
to
Jan.
time
manager.
.
as
-v..,.
^
«
%
«♦
♦
•
f
».
.#
.•
2,709,917.43/
V"**
/1,000,000.00r || ||
^
f
4,000,000.00^4 j
24,000,000.00^
*
♦
•.
♦
3,000,000.00
'• 970,364.47
••
♦
5
f
Payable January 2, 1946
4
•
*iI;I*.:
••
v
»
»
,
1>o53»5/,.;
-$178,537,110.37®^^
*
■■
^
■
Securities^^tarried^^at $39,110^00.00 have been pledged to secure United
-4^ -• "5
^
■
>
.
; -
.
Mr.
Mc¬
cashier
and
...
r;
office
IS
V-■•"""■■ ;
States-Government War Loan Deposit of $28.41 »7,&*4t26, to secure Bills
Paj able, and for other purposes „as required or permitted by law,
fs'1
'r,8jt 0/ V'>}h>
s
:1 '
•
'
:
^
/
,"?v,,v"'8"'vJ
s
8 * 8
"
OFFICERS
-jx ^ v.
500,000.00, V,, f
,
k
v„\>
'S
8
&
'
-
^^ V8'?'V-v/
1
.^Vv'-r:8'/t
nt
':;*'■<)
>
WILLIAMSON PELL, President
BENJAMIN STRONG, First
Vice-President
JAMES M. TRENARY
ALTON S. KEELER
';'
\
Vice-President
' '
Vice-President and Secretary '
Assistant Vice-Presidents
BERKELEY D; JOHNSON:
AUGUSTUS J. MARTIN
HENRY E, SCKAPER
HENRY G. DIEFENBACH
ELBERT B. KNOWLES
H. JOHN SIMMEN
GEORGE F. LEE
GEORGE MERRITT
FREDERICK M. E. PUELLE
CARL O. SAYWARD
LELAND C. COVEY
.
HENZE
LAWRENCE C. MARSHALL
^
Serving with Armed Forces
HENRY L. SMITHE&S
IRVIN A. SPRAGUE
STERLING VAN DE WATER
FERDINAND G. VON KUMMER
LLOYD A. WAUGH
* '
Assistant Secretaries
ELMO P. BROWN
PAUL
CAMPBELL, JR.
THOMAS J. MADDEN
FREDERICK N. GOODRICH.
FRANK J. KEELER
.
<-
-
WILLIAM J. MILLER, JR.
ARMITAGE MORRISON
W. A. W. STEWART, JR. '
"
MEMBER
'.
FEDERAL RESERVE SYSTEM
IfEW,YORK CLEARING HOUSE ASSOCIATION
j
.
partnership
10.
Carron has been with the firm for
some
y
^
.•
•'
Angeles
Stock
Exchanges,
admit
Hyman .Morris - and
firm
.
and
Jolin
the
^
;
M0
HENRY B.
will
in
..
.
■}:)■■■
Morris, McCarron 8
New
♦
.ili
*"k
'Wj - '■< 4
r.
ANGELES, CALIF.—A. W.
Morris & Co., 325 West 8th Street,
the
A
.
;4.
Davis Polk Wardutell
LOS
of
*
3,891,158.23
1,475,00000
529,472.28
LIABILITIES^^:.;
0. ■.
Total
:
,
A. W. Morris & Co. to
members
'
ARTHUR H. ERB
there
Admit
' r-"
Payable
:
1
closed
day,, J It is understood
same
.
Dividend
Life Insurance Company
5 common shares at $128.50
unit), as well as a separate
offering of 18,000 common shares
at $6 per share, has been com¬
pleted.
The offering was made
were
v*
•"
Unearned Piscount
per
Dec. 27 and books
.
•
;8-J®®
;
.
and
on
»
Reserved for Taxes, Interest, Expenses, etc..;
BUTTERWORTH
Vice-President,
Aetna
,
♦
*
.
Bills
Company '
JAMES H. BREWSTER, JIL
Q'Stillivan Rubber
}
.Deposits.:;,;
•!
Director,
G. FORREST
;
General Reserve
,;i
Cadwalader. Wichersham & Tcft
Building, 921 Walnut Street.
*
Capital Stock
will
firm
new
be located in the Columbia Bank
.
840,000.00
•
.
Surplus
j
JOHN HAY WHITNEY
Frecport Sulphur
>
.
§C
.
will be manager of the municipal
department,
manager of
; .;
•.
:
First Vke-President i
•
.
;
,
BENJAMIN STRONG v>;
Lucas
will be sales manager; Mr. Farrell
.
•.
*
Debevoise, Stevenson,
,
2,870,000*00;
♦
»
s
afc.-1
j
FRANCIS T. P. PLIMPTON
Jr.,; President };TeoT* FarrqJI, and
6,468,000.00
•
'
corporate securities.
i Richard
•
^
i
14
'^'.0: Lawyer
Officers will be .Mark A. Lucas,
83,238319.80^
•
vi.• Totai^r:
;
,5
i
Carter, Ledyard & Milbum
HAMILTON HADLEY
W-
48,517,885.27
•
A
Accrued Interest Receivable
?
A.
-
.
Real Estate Mortgages
.
V
-x
t
'
f
•
ROLAND L. KEDMOND
;
-retiim^from] service? in
^
•fSC-.J
't'vi-**- •«('/•••
i{.
ing;a general investment business
Rafter the
Loni, Day & Lord
#
♦. *.
ic
i:
GEORGE DE FOREST LORD
Lucas;. F&rrell & Co. as
successors to S6den~& Coi, resum^
tiort of
$ 30,707,274.79
Municipal Obligations
Federal Reserve Bank. Stocb
i
Ui
nouncement is made of the forma-
•
♦
Obligations
Banking House 8
n
,
Commander, '
§. Naval Reserve
.
»
.
!
"
/
''
,
.
State and
,
't
City
.
.
.
United States Go\erninefit
.
BARKLIE HENRY
/
K'A N
?
|s
r
•
Il
:
JOHN P. -WILSON
'
:
WILLIAMSON PELL
A?
.
i
fi
-
Formed inKansas
i
.
Loans and Bills Purchased L
;
,
monthly
Lucas, Farrell & Go.
Gash and Due from Banks
*
JOHN SLOANE
'
■/
fc
\jtr
"/i-Yy'
4
and
strikes should*reach normal pro-
:
of Condition December 31, 1945
Statement
A
biles are made;
:•*
+P0M '
have : dropped
operations
V
/•
:
out¬
standing will amount to $242,360,-
'
capacity of .the; industry has1 been
expanded by over 12,000,000 tons
and a substantial part of it will
be needed to meet the require¬
ments of peacetime industry.
Production*>of; V coal is ^ being
maintained at around 12,000,000
tons weekly, and about that much
will be' needed this year. Output
of crude petroleum and refinery
ma¬
turing Jan. 2, 1946 and $75,000 is
money. As of Jan. 2, 1946„ the
new
executive
its
York,
like amount of debentures
a
American
Democracy,
Youth for
Marsh
of:
unit
autonomous
is¬
was
banks. The
greater liberali¬
a
an
Banks
by Charles R. Dunn,
fiscal agent for the
financing consisted of
$40,580,000 %% consolidated de¬
bentures dated Jan. 2, 1940, anc\
due July 1, 1946. The issue was
placed at par. Of the proceeds,
$40,505,000 will be used to retire
New
systems*". In. addition,. ther confer¬
zation of the GI Bill of
offering of
Credit
made Dec. 19
L$w 346, to colleges "having quota
ence
successful
of debentures for the Federal
sue
sities, and opposing the granting
FEDERAL, DEPOSIT INSURANCE .CORPORATION,
-
THE COMMERCIAL & FINANCIAL CHRONICLE
Even
.
in the
case
Foreign Dollar Loans
of the latter,
Halsey, Stuart & Co., Inc., finds
any
real call
ket
the
may
on
money mar¬
near-term
undertake
to
projects when materials are avails
able.
And
This
Investors, by force of circum¬
stance, will find themselves lean¬
ing increasingly on the market for
government and municipal obliga¬
over
what
as
an
some
of the
derwriting firms
pectation
finance
the
profits tax under the
new
tary
that
on
J
destined
further- deficits:
will
sitions
from
ft ing. out of the rush to meet
time needs of ,the nation has
voIume,> while
vided
states
and
mu¬
industrial
most
down is concerned.
-*
new
/to
of
many
"
•
'ft
•-;; -•
ft ft
ftft'ft'-r.
--ft*
-.ft
eral
\
bidding
for
weeks
will
for
debentures,
new
to mature Jn 20
years,
and 102,000: shares of; new cumulative
an
:
series B
The
.preferred-vstock,;'
new
v
prefeiredftwouidftbc
of¬
find
quite
themselves
companies
faced
uMii——ii
—r——-—
Central National
Elects Two V-Ps,
with
a
; Central
22
-
National
Corporation,
East ft 40th Street, ^ New < York announces The election
of
City,
vtheir^ experiences
pected' to duplicate that perform? two
Vice-Presidents, - Arthur Ross
bonds^bought
ahce;ftfty'ft'' ft "
" ft " - r • f" .• I rind ft; Frank .Kley,
Mrft r Ross,
Ago/ ' ■
formerly a Lieutenant in the U. S.
First On List
with foreign dollar
twenty
years
iNgyal; ftvpesOrvpV;fjeingftft/re-, ;
Atlantic Refining Co/s refinan¬
cings program involving $35,000,?
ft
elected
to the office of VicePresident of the corporation.
Manufacturers
COMPANY
&
(Condensed S tatement of Condition
as at
,
,
Municipal Bonds
Stock of Federal Reserve, Bapk
.
I
,
*
'
>
.
.
.
33,047>708.67 !
, .■
•
:
«
•
•
*
,
.
,
-v
,
.
Other Peal Estate Equities
Customers
.
•#•.
,
.
B
23,302,510.15
.
Accrued Interest and Other
v
Y
5,130,495.28
*
•
.
.
j
/
^
;<$22,2J1^59.70??-r
Leaps tq Brokers, Secured
V. fcH,> •
-U. ■<8. Government; ^curities - ^fv/;,,\'v.; •
State, Municipal and other Public Securities v
Other /Bonds
ft.: :;ftft ft/. i-ft-ft;""
Loans 'and Discounts
/ft Stock oL Federal tReserve
Customers' Liability for Acceptances
'Accrued ftlriterest/andfti Other/ Asseri
6,137,651.09
$2,693,184,469.17
'■'
••
ft -Demand
"
377,726.73 -SM
.
#
Resource^
*
-
.
'RESOURCES
•
■
Cash in Vault and with-Banks
.
,
<
•
480,489,935:84
8,462,693.45
11,471,030.67
#.
•
Liability for Acceptances
v
.
'
•
SQUARE. NEWftYORK
1
.2,475,000.00
9
,
OFNEWtpRK
4,329,535.93
B
*
-
,
.
.
%
Loans, Bills Purchased and Bankers' Acceptances
Mortgages., ,
Banking Houses.
j
HANOVER
1,507,987,636.12
Mortgages,
>
..
.
609,972,505.24
#$
-
*«;'-»>
•*.
«
.
...
Other Securities.
GRACE, NATIONAL BANK
,
,
,
U. S, Government Securities,
U. S. Government Infeured F. H. A.
State and
ot
close of business December 31,1945
PESOURCES
,
Cash and Due from Banks,
'2,025,455.44 '
67,S6lM.
ft
28,372,303.84 ft
/ft1" ftl^OO.UO' , 1
iV • ^867,609.7^; '
..ft
.
,
.
•
^
4
49,852,877.63
.
407,202.85
'
LIABILITIES
/>.
.
Surplus
ft/
.
••
Undivided Profits
•
.
«
*
.
.
$41,250,000.00
*
,
-
*
/
.
Outstanding Acceptances
Liability as Endorser on Acceptances and Foreign Bills
Deposits
■, '■ .
V *
"•
.
.
.
J
fi
ft
are
'
pledged to
defosits^ htidjbr other purposes
as
:
Chairman, Jhe Sperry & Hutchinson Co.
.-
President, Atlantic, Guff and
West Indies Steamship Lines
CHARLES
Aft
"ft
DANA
Simpson Thacher
£ JSartlett
CHARLES L; JONES
: The Charles L. Jones
President, Spicer Manufacturing Corp.
^
Vice-President'
.
New'York.City
fr&y
• •• •
Robert
•*.'
•;
■
V'-H'
.
;J.' CuDbiHY.
•
yPresident
De^vey
BANKING
Chairman, Trust Committee
';
'
■'•"..••ft
•'
.
New York
■
.
Vice-Chairman
of tl\e Board
■
,ft
•
/
ft/
Thc.Cuban-Americaa Sugar Companyft
t
-
':ft«
■
^.Tl^gini
Jobnsojv
Clark H. Minor
• ■
'
:
-
?
-
•
ft.
Dwyer|J
r
'
ft .fttftWjLLIAM. ftVL ROBBINSft ft
~r -,.ft.
yi^cPrCfident, 'ft- '
.
.
i-
Member New York Clearing House Association
<-
i
•.
ft \ ft
Harold J. Roig
Director, W. K. Grace 6? Co.
'
«
*
-
•
.
,
' Prckident,
4 ft.The Grace
■
name
MEMBER
ft
> -
ft
-
-
•
.
FRANK C. WALXJER
ft
New- York
-
;-
'
«•"
1
,>
has been identified with 'domestic ahd i
FRDEKAL:
s
VicC'Preaident
-
f
banking and
:
* '1
A>ryay#, Inc.;
JAMES .H.. .SHARP
t
:
»
.
lngmull-Rand Company
,
■•.'"•
i
.
D. C. Keefe
•
JJrcsidcnt,:
"atii Amcrican'Grace
h
>,
*
Kirlin, Campbell, HickoxT Keating
<s-v
,
}i)
:
-v
-i
•
AoMontb
Ci.ktus ■ Keating
♦*
1
•
Chairman. Executive-Committee/,
i
International Genecal' Electpc 'ft :;- ' ftftft
-
D. S. Iglehart
ft
3
r
ft
Chairman, Western Union
(L
"
•
'
.
ALBERT N. WILLIAMS :
.
Robert E.
'-v,
HENRY C. VON ELM
ftftft'ft:;'ftf
Member Federal Deposit Insurance Corporation
_
I
ft
OFJFICES JIV CiR^ATUR NEW YOIIK
System
Keiser
1
vj-.v
.
.'President, Curtiss-Wfight
-:
Corporation
'
European Representative Office: 1, Cornhill, London, E.
Member Federal Reserve
.v.: :ft;
••:■.
Nfricsidciit,
1
GUY W. VAUGHAN
'
Principal Office: 55 Broad Street, New York City
•D
^,
David Dows
Telegraph Company: 5. ft l-ft
r.y-yzyfr •'
$*./
'PeH**-
^
_
Emigrant Industrial
Savings Bank ' - 't ft
■
..ft,-ft,ftft
' Pre?ident,
s
Vice'.Presiclerit". and; Tr^surer/
ft Funic ftfiPft Waghallfr ^dmpahf ft',
Chester'R.
President, Home, Insurance Co.
JOHN P. MACUIRE
President, John P. Maguire Ac
./ft:■■■
*
-•
City
ERNEST STAUFFEN
•
Oxford ,Pap^r Co.
,
-
-
David-M
Chisholkj
ft Presfeknt.
.
••>$y
ft858,173.55
4106341,777.03
ft.
'
•
;
i-rX '•
•ft-ft.:,-'.'
President, Cluett, Peabody At
Co., Inc.
•*- '
•
•
HAROLD C. RICHARD
ft
President,
President, United State* Linen
Company
;■■■
]
'
ft"
■•■■
DIRECTORS
HUGU
'
JOHN M. FRANKLIN
'
ft-
PALMER
New York
JOHN T. MADDEN
ft.
1
•:*Inclu(^U.S;.Govcfnin^rrtPeposit5jig&rcgating.$22/869,8l6ft6l
HAROLD V. SMITH-'-'
Company
Company ft SAMUEL McROBERTS ft
:
HORACE C. FLANIGAN
;
ft
''
President, Lambert Company
Corporation
ftft "
..ft
President, Scranton Ac Lehigh
OSWALD L. JOHNSTON
Chairman, American Borne
Products
LOU R. CRANDALtv
President, George A. Fuller
i<
#
Coal Co.
■
JOHN V JOHNSTON
-
2,09.5.891.44 V;., .7,
Rcserye/fprvGopringencics/
•.
CEORCE J. PATTERSON
HARVEY Di GIBSON
President
•" 1 \ ft5
EDGAR S; BLOOM-
ALV1N G. BRUSH
=
PAOL1NO GERLt
President, La France Industries, Inc.
EDWIN J. BEINECKE
j
;.
UmM:
£'
C. R.
Chairman, Lincoln Saving* Bank
-
"
I n ft V/:^87-4,457.90- V$ >6374,457/96 -.ft
ft"
reqwedpr permitted by late.
CHARLES FROEB
:
e-.
-
DIRECTORS
EDWIN M. ALLEN
'ft.
/Vft-.ti^i756;QOO.OOft ftftft-ft-ftvhfcV-fy-
: vf
iatML:Gasl>ters
Acceptances
./ft-
A
'A
f
ftftf ^Tf$^75o,oo'o;o.r.-;
>
•/
$2,693,184,469.17?
:
v
/
,
.;.i.Deposits^'-;
A-ft,
2,555,885,572.92'
LoanDepositsof$47f,B91,759.21and otkerjiublio
Chairman, Mathieson Alkali
Works, Inc.
Profits
:
United States Government securities carried at
$508,292,492.05
seoureU. S. GovernmentWar
finds and trust
c-
Undivided
§,67^56^,46
:;|726,974,52 -
.
.
^
.
■i
Capital" Sfobk -vftt
/SurplusftC- / ftriftftft-
.9;391i073.68
7,129,420.05"
1,237,498.26 ^
*
.
LIA^UTIES
-f
-
41»2^»00Q,0Q
y?, ■■■.>!^0X:NtN0,
30,637,360.54 $ .113,137^360,54; '
Reserve for-Contingencies." .■* ;* > - ;
;-<i':
Reserves for Taxes, Unearned Discount, Interest, fete/
Dividend- Payable January 2,*1946 % A ».' %
t
B ^
.
...
.
' ft- ft;
^
have
«bout' a^billion^ ^representing; new
task ihv spite oUchahge<l: money operations, was by way of
conditions. Most investors have- refunding. Indications are that the
current year need ^hardly be ex¬
not
forgotten
proB
with all the capacity they need,
nicipalities will be in the mar¬
ket, as conditions warrant, for
thus obviating the likelihood of
funds to finance improvements ft any, nearby, demand for new
capiB
inn»
tal on a large scale.
postponed by the war. ' V
ft
TRUST
^
sev¬
provided
ago
$25,000,000 of
ft; Accordingly corporate under- ft
writers no longer will be able to
when
to
ft ■:
.:
-
tion filed by the company
\
ft
gamble,
issue
Dealers are now: inclined to
•look /for: the debentures ftto : be
ft;/;
offered early next
week, probably on Monday; ftThe registra¬
issue of negotiating a new deal,
that
if
they
should' overbid
those
around/•■• the
conditions
■'
ft-
substantial
new
reach market for 1946.
pricing, is likely ftto prove costly
ft..; * * /•!** .4*'?•if
*•**£ tbft the; group involved/^ The ^mar-,
Banking firms which undertake ket last Tear is calculated' to have
such operatibns if the government absorbed
upwards of five billions
steps out of the way,1 doubtless of1 new issues,ft of which; all • but
war¬
time to time, though in reduced:
that
expected' toi be the
first
ing their war-debt burdens.
remain.
The industrial expansion grow¬
to
unlikely
debentures i and ft pre¬
new
ferred stock'is
>
rev-'
act, a major incentive is
withdrawn, even though cheap
money and improved credit po-*
Federal
the
appears
the ex?
000 of
ft somewhat, the market sooner or ft
fered to holders of the common.1
changed and the t rlater ,will move-up to take them ft
stock,/iyith bankers agreeing; to
rank and file of governments ;
"off the hook.", * *
• ft
--ft underwrite
any
balance* unsub- ft
.•-vft-r - are pledged to low interest rates,
•Henceforth such, error, .or: overt scribed for by .shareholders.',,
H,ft
to keep down the cost of carry- j
-v
.ft'Xv;.,.j. ....
-\•
world
enue
ahead.
can see
is
brought out in the :20V Mone-
;
'
active un¬
it
attached
•
sub¬
a
-
-
underwriting
on,
to
bonds coming into the market
will carry Anything -like the- 7-:
and 8
coupon rates v^vhich .
stantial way in recent years and
with the removal of the excess
judging from
more
This view is based
Treasury
in
refinanced themselves in
outlet for their funds
the long range,
that
finds
corporate field the outlook is
for contraction in* volume of
new
financing. Railroads and
Utilities, it is pointed out have
v
tions
firm
ft here
foreign bor¬ groups are going to find it. in¬
rowers
through .the.. .medium of cumbent upon themselves to cal¬
'dollar bonds is conceded generally culate the market for ftnewftlssues
to be some distance away. In fact a- gocd deal!more cloSely;than .in
even
when the time approaches,
recent ftyearsft-The XJ;' ISftftTr1^asury
it will require considerable in the has.'
about ftr^ached tho^^ enq'ipf its
way of preparation. /
• '-ft'oV*-' -ft
rope so far as forcing money xisdes
states, in particular, are possessed
of substantial cash reserves with
-
Closer Figuring Due
1
the' ^American .'ftftFrom
of
market
money
be some distance away
due to the fact that a number of
which
Reopening
.
commerce
DEPOSIT
for almost
ftA
a century.
INSURANCE
CO 8 P O R AT
1.0 N
<>
THE
Volume 163 'U Number 4452
COMMERCIAL & FINANCIAL CHRONICLE
Jr. VP. RobLDahn With Dept.
Of First of Michigan | Of Union Securities
David Callaway
John P. While Admits
(Continued from page 11)
Itzel
*
hope that the foundations; of in¬
dustrial f; peace
can f be ' greatly
strengthened at present by volun¬
tary action,
and Congress hag
turned its attention to the possi¬
bility of legislation to promote the
peaceful settlement of industrial
disputes.
'
4
?
f\
■$iEven If the conference had been
mere
successful, however, and
even
if Congress should find a
helpful formula for the settlement
of disputes, the wage-price issue
that danger cap be
averted ot minimized,- the com-?
If
strikes.
ing; year; not bnly1 should be a
fairly prosperous one for the great
majority of the American people
but should bring substantial prog¬
ress1, toward : .the building ^of:.<a
as
Partner
-John P. White &
:
Street, New York City, announce
the admission to general partner¬
Mr. Itzel
ship of Charles E. Itzel.
formerly
was
of
manager
the
trading department for W. J. Ban-
In the
:
the
caused
are
as
by
global
wars.
If : can; only be: hoped that a new
tenable* wage-price equilib¬
rium
be: established
can
qiuckly
enough to forestall serious and
possibly lasting damage to the
nations economic structure:
capable
■The end of the
few
war
war
result
THE
to
agriculture,"flood control,
power, loans to foreign
countries, and social programs.
Fiscal Policy
a
Crucial Problem
The
inevitably high cost of government will make Federal fiscal
months of the year has been
ac¬
policy a mhbh jmorpyital; influ¬
companied by a downward - trend ence in: tho general economic^ Sit¬
in federal expenditures for war uation than it has ever been - in
purposes, and revised budget esti¬ the past Under any conditions,
mates issued after the Japanese taxes will
represent a heavy and
deficit
a
for
the current fiscal year of approx-
imately $30 billion, as against an
estimate; of. $467 billion
original
and
an
$54
billion
actual
deficit. of .nearly
in
the
fiscal year
of
order.
uncontrollable
The
Cash and Due from Banks
U. S. Government
fully guaranteed
eurrency^-dis-
Federal
budget t must
; !warTireasui^^fu^^
be balanced; not^only^ irt^gciod,
jtion?, in repealing the excess years but over the -long tterm^Ti
profits tax and in. reducing' cor- this is to be done without making
;
porate and .individual, income-tax the tax burden a fataUdeterrent
Z fates. has brought a ' prospect of to.economic welfaretand^prpgreasi
early relief to, bullions. :of ^tax-, it is essential that every- unneces-'
and
;
has.
.
undoubtedly;
served to
hasten the progress of
reconyersion. Itjrisr^meh^ jhtow-
,
State and
f
.
! | ever, that
sary
.
.
$1,366,233,111.69
•*
.,
......
Municipal Securities
4. *.
3,078,102,718.25
,»
147,221,452.48
...
.
.;
1S|}1
.
.
Loans, Discounts andBankers' Acceptances7
Accrued Interest
governmental expenditure be
and that taxation j be^SQ
T*
avoided
•*,
r
V
dis^ib^edj^7fp^)ffw|tl^lea^
**1
Receivable
*v-r
-»%
•
Mortgages
.
|r
y ''
*
.
£
#
.
%
.
.
-
-i
.
•
5
5,847,765.89
.
•
7,500,000.00
1 ^33,785,529.44
P
.
,
V
.
....
v
-^V
->'.■•■■■
8,067,962.5^
Banking Houses
•
,:'s
•:
■'■■
Other Real Estate
duction in thevnear-future is limited.
*' 7.* 'L "7 »',v- .7;"": -" 9' -.'j?
13,368,045.53
^
*■
.
Stock of Federal Reserve Bank.
J. G. White & Go.
156,265,894.47
1,271,694,229.96
tl t;f
•
*Customors5 Acceptance Liability* .* /
% no means at amend.'' As both the
President and the Secretary of the
Treasury have pointed out; the
possible scope of further tax re¬
.
Obligations, direct and
.
'Other Securities « .' V-
demobi^mti^i^wili re- possible"hi hdrance:to'the^fiPw^df.
^ quire. consider ble^tinieVahdt hat
Ithe^penbd^pf
by channels, " 7.'!
*
.
CONDITION, DE
RESOURCES
further. ^TheV; only ^possible ^ulti-^
mate result of such a course-would
be
30, 1945. The action
Congress in accelerating post-
STATEMENT OF
continuing burden on business en¬
terprise. To lighten that burden;
there Will be a constant temptation; to. allow the«debtto^Increase
ended. June
payers
CHASE
NATIONAL BANK
.
aid
; %'
.
.
•
•
•
•
•
•
.
.
.
.
•'
•
•
•
'
■
.
"
-
•
■
2,269,767.36
■
-
*
-
Baidcing^pohdititmsvhaVe:
tinued
be
to
finance,
-
even,
since
con*
^;$cciir ifies^^c .^Excbange
largely
Commission has handed dbwnt ah
actual
determined
pfdor;perhiitting
Co., Inc., 37. WallStreet, :New:
the
ip0yerhmeht;76bli#ati6hs
have risem to
;
new
high levels* and
of
Trinidad
the \ capital stock#.of
Transmission
amount
chase
also
has
money
in
continued
contrary
to
the
circulation
to
increase,
expectation
in
some quarters that the
decline in
payrolls in war industries would
result in
a
In
connection
the
New
with
this,
Mexico
Company is! selling certain^bf ^tsr
property- known as the Dawson
.
Surplus.
...
The
Trinidad
4
$6,092,^o6,648.32
y
?
7
7
"V
»
■■"■■ -
■
.
-•:
.X
.
Undivided Profits
,
.
.$111,000,000.00-
,
139,000,000.00
50,239,8^6.18
.
,
#
$
#
#
?
300,239,856.18
diminution of demand
TP^aMe^bjiiafy i and May 1,
1946
a
year. ago.
The General Prospect
i
?8^;Co.^^Ine^ hilthe |pubchase:-ahd
•wHI^.b.ecomee::Chatoan/;;bf,^the
.
Reserve for
"V-J
Day/'vCommerciai, in- plaints !.with7an: installed • Capacity
t dustrial and agricultural loans of of 28,000 kva. Mr. James M:Pat¬
woekly reporting member, banks ten, )who has been associated" with
: stand at a.
figure more than a bil- Electric Advisers, Inc., an affiliate
l: lion dollars aboyeVthat op
Aug. of Cities Service Power & Light
715 and more than $700 million Co., is associated with J. G. White
above that
*
Electric Transmis¬
currency.
since
.
Division to the Trinidad company.
.
:
•
" X.r.'
Capital Stock.
pur¬
Power
sion Railway ^^GdSiCo/supplies
Perhaps the most electric light and power service'to
Significant; banking- development a population of about 30,000 in
in recent^ months has been the
southeastern Colorado and north¬
sharp increase ih: business loans ern New Mexico.
It has power
for
'
6v
rn
Capital Funds:
Electric
Railway & Gas Cov for $790,000^-^
.
f
«
LIABILITIES
Pity^;to; •; ,acquiro^26,QD(i
shares
the increase has been
accompanied
by a further rise in deposits. The
of
J
.
»•;,
2,244,170.70
.
fighting ended. The banks' holdf ingsv,pf
"
Other Assets
•
•
.
»
•
•
Contingencies
•
•
«
«
•
.
Reserve for Taxes, Interest, etc.
.
Deposits
Acceptances Outstanding $
9,341,045.22
Less Amount in Portfolio
3,022,521.90
board.
"
Tn spite of difficulties arid uiicertainities at-home and
abroad,
Pr^seht cqnditions: seem >to war¬
rant mbderate ^ptimism as to the
;; iiear-term outlook. The unsettled
ment and
delay occasionedvby the
wage-price controversy have not
prevented reconversion as a whole
>
from
| proceeding :?V approximately
v
-i'
1
1
1.
;
■*—MWMMB~
11
Liability
:7V-'.v
Col. Roberson Returns
To Uzard Freres Go.
as
Endorser
Foreign Bills
Other Liabilities
*
on
Acceptances
.
•
.
.
#
•.
#
•
•
"
Col.
S. 7; C.,
Frerfes
:
William
C.
G.
Roberson.
j has returned v to xLazard
Co.; 44 Wall Street; New
City, members of the; New
York Stock, Exchange, after five
years' j leave- of absence. ; - The
tified. by large amounts of un¬ form er: New;York National. Guard
spent money income, giV*es prom- officer
during his period of, active
ise of a
flow:of <iemand sufficient duty spent over 19 months in the
to tide ' over a reasonable
period European Theatre of Operations;
of,;reduced emplbyment and to Assigned to fhe Intelligence Sec-r
provide: a ready mtarket fpr. the tion of Headquarters First U. S.
:productsof reconverting7 indus- Army,: he participated in all the
tries.-,The.'-; mostmenacing,; possi¬ campaigns of that unit. He holds
bility at :the moment is that of the Bronze Star-and Purple Heart
partial industrial paralysis , due to in addition to other awards; :
;
according ; to > plans and expecta¬
tions. Several, years' accumulation
of unfilled
consumers'needs, for-
'.
and
York
United States Government and other securities carried
to secure
U.
funds and
at $1,534,786,(©6.94 are pledged
Deposits of $1,254,201,980.98 and other public
deposits, and for other purposes as required or permitted by law.
S.'Government War
trust
Loan
1
.
AUmber Fodorat Doposit /neurone* Corporation
,
.
»-
—a-,*.
&
Co.
be the tremen¬
will
greatly increased; and, if present
plans are* carried out, large .ex¬
penditures ; for such, purposes-: as
highway
construction,
housing,
important changes in finan¬
indicate
Marks
has brought
cial conditions. The steady decline
in war production since the early
surrender
M.
long-term view, perhaps
lasting and most ines¬
economic condition that
will have to be faced, as a
electric
Financial Developments
Laurence
R. W. Pressprich &
dously increased cost of govern¬
ment. This will include the : cost
of national defense, which will
unquestionably -remain, much
higher than it was before the war;
the cost of veterans' benefits, also
and
joined the Municipal Bond De¬
partment of the firm. Mr. Dahn
was
formerly
associated
with
most
of ' the
..example of the
disorder that invariably ; attends
sweeping economic changes, par¬
ticularly such violent upheavals
that Robert A. Dahn has
nounces
fare.
situation
an
Securties
Corporation,
Broadway, New York City,"an¬
65
wel?
strong foundation for future
would still have to be faced. The
is
Union
Paul L. Sipp, executive vice
president of the First of Michigan
Corporation, 2 Wall Street, New
York City, announces that David
H. Callaway, Jr. has been elected
a vice president. He was previous¬
ly assistant vice president of the
Co., 120 Wall
Co.
.
and
THE COMMERCIAL & FINANCIAL CHRONICLE
36
Grant & Dayion
Join
Clark, DcdgeJ^ Go./i
Elects Officers:
ScoH & Birmingham
Clark, Dodge & Co., 61 Wall
Street, New York City, members
Of the New York Stock Exchange,
NiSD District 11
*/ Walter R. Scott
Our
Lord, Abbett Vi-Ps.
'B'»1
'
WASHINGTON. D. C.—Charles
H. Pinkerton, Baker, Watts
Baltimore,
& Co.,
elected Chairman
was
announce
the-National
of District No. 11 of
tant
elected to the District Committee.
Kirchofer,
Raleigh,
elected
Kirchofer
&
of
C.; the latter was
the xepresentative.irom
of
the
Association
for
;
C.
a
Reynolds' &
Co.
With
offices
Washington,
the securities business.
' *
*
"
\
.
"
The
the
most
substantial
obligations
investors
.,
must
.
that
still
extend j maturities
Office: 55 Wall Street, New York J
-007707•;$*700777707777777, ! V' 707}7'
I
Condensed Statement
t.:
.
•'
■■
.
i
of Condition
i
*'■7'7
*
■■■
OMITTED)
ONLY—CENTS
-:W<
•
/*
..•*'
•
_
—*
ASSETS
Due
Bankers
Banks
from
.
.
.
.
.
Deposits
and
■
HUnited States War
* 2,773,488,249
.
'Liability
Obligations orOTHtK
^ederajl *
Agencies .'
'.
*
• ;
mediate
•:;
.
State
.
.
.
restricted
obligations
.
continued to
term
are
selling.
.
Other Securities
...
.
.
Loans, Discounts, and3xnkers■ v7?
Acceptances
.
:
.
Real Estate Loans
and
Customers' Liability
/ Acceptances1
:
Stock
.
.
Of
*.-.».
Premises.i "7.
Transit
in
.
•
bank
bonds
for
the restricted
issues
*
5,879,31-2
...
2,284,792
.
etc.
Undivided Profits
9
'Total
For these latter the figures
^1,328.365,691 of United
to secure
2%
249,294.238
7
2%
>
$5,434^372,6001
reserves.
;
(MEMBER'FEDERAL
'
Chairman
of the Board
PSPOSIT INSURANtS
CORPORATION)
Vice-Qhatrman of the Board
.
Gordon S. Rentschler
W.
-
1
-
.
„
—1.
106.29
106.10.
-+; 19/32
101.16
+ 1.11 7-
+1.15
c'7'71
103.16
7
12/15/50
9/15/53/51
:
,
Head
*,0
*000/0^7^-'
+
104.10
7
,
r''
)
104.10
105.207
104.12
.
Office: 22 William Street, New York
.
+ 1.11
109.6
+ 1.15
+2. 5/32
+6. 7/32
112.21
114.26
103.21
109.28
9/15/59/567
100.23
9/15/59/56*
6/15/63/58*.
7
DOLLARS
assets
>
([
Cask
x'"
'**
Due
and
'■
•
4'
■
Banks
from
'
;',
•
...
.
$ 29,870,345
Loans
or
and
Real Estate Loans
Stock
...
and
154,851,446
,*1,042,384
.
Securities
Federal Reserve Bank
in
.
'f.
;5,040,95P
600,000
.
i'bask premises^
3,339,764
Other Real Estate
Other Assets.
f
.
.
.
«
114,786
.
-
■..
..
';;-7"•
-
rp
.
■>" ' ;
./LIABILITIES
.
.
.
.
...
i
«
v;:7 ;-"-0"77;;■
2,098^362
$55,429,270) ;
*Res%rv^s 7 7:1"> 7 7777777 V-;
^
.
.
.,
....
4,511,379
-
.
.
.
100.28
.28
7-77 '• \ ./j';7 ; <0' I1);
.
.28
100.24
103.19
12/15/68/631
100.15
102.28
6/16/69/64f
100.11
102.19
7+2.277 •.
+2.13
7+2. 8/32
102.17
U +2. 6/32,
I
2Mz%7
2Vz%7
2Yz%7
-•
3/15/71/66f
•
i
'
7
'
+
117.12
'i-
+4.30
102.10
7,;-
+2.00
+ 1.26
101.27
T7;; 7 7100.12
Offered at 100 >
'
June
6/15/67/721v?" 9/15/67/72
,5
7
1,1945 77.}i
100.20
101.14
108.28
^;
7
,
2V2%
$196,968,037 7
*partially tax exempt.
BEST PERFORMERS
15,1945
101.14"
>
i
70 7 ' r
+ 1.14
."7
fRestricted issues.
largest
,
gain
was
,/•*,'
^
made by
-
the
*.
/
'
bank
9/15/67/72 which advanced more than 8 points.
,
7
4
i
,
2Vzs due
.7 Following in
line was the 2V2% due 1956/58, with a price betterment of about 6V4
points. 7 7
The restricted 2V4% due 1956/59 was among the leaders
with a gain in excess of S1^ points. . . '. The partially exempt bonds
were led by the 2%%
due 1960/6*5 which advanced almost 5 points
Hiirjng; th« yepu.
Sizable imnruvement was registered in the
2% taxables with the best showing in this group being made by/the
-TiAtctTiiuer 1902/04 S witn an increase -of more tnan 4 points.-*-, • •» 7.7
7
7 • ' '• •*" ''L".* v*,7; •; *-: " TC7 '-r
~7:':-'/vf ■.,-••• ; 7;
The
$60,406,874 of United f tates Coverrment Obligations 'are deposited to FecureThe
United States ^ ar Lean Deposit and for ether purposes required or permitted by law.
Nov.
712/l5/67/72f
+1.14
+8, 8/32
7 }' /'// :: {}\ ■
Offered at 100
27,221,636
'
J
'
-ip
•
-112.14
'
■
r
"100.11
12/15/69/64f•
73/15/70/6517 7;!-77.100.10 7':
2V2%
7 221,636
Total
(MEMBER FEDERAL DEPOSIT INSURANCE CORPORA f ION)
+
07
Offered at 100
6/15/67/62f
•
$196,968,037'
100.28
June 1,1945
07;,' i'{ 7:
12/15/65/60*
tWf
10,000,000
Undivided Profits
'.7 f
<12/15/62/59f 7NOV.15/1945 7 7
'> t ■
-.6; 7 51 •' 7-
.$10,000,000
Surplus
'007.!
2Vz%
for, ; ■
.
+3.21
2V,%
$165,235,022
.
Dividend $310,652)
Capital
115.23
+3. 1/32
2%%
21/2% I
f
Loan Deposit
(IncludesReserve:
;
2y4%-.-
(Includes.United States War
Fully Guaranteed)
Advances
r
Deposits
U. s. Government Obligations
(Direct
'
112.2
6/15/62/591*
21/4 %
OMITTED)
+5.19
7115.3/
Offered at 100
V 07-
of December 31, 1945
as
ONLY—CENTS
106.10
;
112.2
m
7
(IN
+4. 2/32
..
105.24
.
;3/15/60/55*|
2%%;'
Condensed*Statement of Condition
+3*18
+3, 2/32
+3.27
+3,17.
107.23
,
'
3/15/58/56
2%%"
'
14/32
17/32
107.3
2V2%
1
t
107.0,
•;
100.10
v
6/15/56/54*
,+
.102,3
,
;
111.8
2V4%
'777*
v;> r -
+3, 9/32
107.13
103.30
7100.15 7 '
7
6/15/55/52
12/15/54/52
76/15/55/53*
2V4%
k 'f:-c ^a,
+2, 8/32
;
2%%?7
'
*0.^*07#'
+ 1.18
109.15
104.1
100.24
,
6/15/54/52
2%
TRUST COMPANY
\
3/15/54/52
.
2%
\0:f7
t-'.i;.
110.26
12/15/55/51
2%
7
>v
106.28
9/15/55/51*
12/15/53/51*
3% ,7r
:.,
Jr.
109.9
100.24
.
4/32
—
t:0
Offered at 100 ?^ f;-v $*77 v;
June 1,1945
101.18
7 6/15/54/51^
2Y4%
107.9
'
2%%
21/4% "
fe'-if
.+1.27 7;
7+2. 8/32
,
,
;
W'.-'X
">
2%
«
+ 1.20
5/32
'"!!! 103.11;
107.13
9/15/52/50*
2% 96
2Vz%
CITY BANK FARMERS
108,247
,,101.8.
7
^
|... President
Wm. Gage Brady,
Randolph ETurgess*
103.7
28/32
—
■
■
$7,973,361 of other assets are deposited
fpr other purposes reQuired or jpermitted by law.
j|pep<>sit0
101.19
i
;
103.5
109.29
.
103.3
3/15/52/50
7
+
13/32
/:V^-L17;^
103.14
9/15/52/50
a
.
104.15
'
101.22
7
V
712/15/53/49* ?
2%
101.21
7
-v
101.24
.12/15/52/49*
2
•f*
8/32
—1.24
,104.10
12/15/51/49 77-W
3Ya%
/-L 7/32
104.77
77
106.0;
9/15/51/49
;
29,294,238
—3.13
:
102.3
•
:iou^-
1^/15/50/48*
2%7
2%.
'
/
7,
6/15748
9/15/48*
7
7
I
105.31
■'
.
"6/15/51/49
,
prior to enemy occupation but less
7
.
—2.16
7
102.13
101.27
;
3/15/51/48fr:
Sjtates Government Obligations and
$1,242,344,155 of riiblic and Trust
3/15/50/48
2%
are included as of December 22, 194$; except
East possession of which we have not recovered.
are
s,
m%k
2%%!
to]
2%
Jiguresf 6f .Foreign branches
Branchesm the Par
1
.!
.
'
4,650,000'
Jjt.
"VX'.
'.
.
-T *¥•.•*/
27^00,
:
—3.
-
101.2
103.20
Change
6/32
w
—2.13
106.5
; i42,5oo,coo
,v...
,.
103.18
7109.18
$77,500,000
....
.
7
^
U
i,
2%
,
101.0
12/15/47*
2%%
1,972,546 |
077|>7S
1
tnosc o!
103.13
•
12/31/45
100.19
;
10/15/52/47*
2%
Ot«**
a
Bid Price
103.25
3/15/56/46^
6/15/48/46*
i;
6/15/49/46*
v
•
•
Capital
50,031,968
•$5,434,372,600
>;#.
Expenses,
.7,422,875 • .Surplus,
.
.
7M.
t
JtJN$AKNJ£DjNCOM&
Dividend
7,000,000 r.
,
/
Branch
With
.
*
*
3%%
4Y4%
Interest, Taxes, Other Accrued
": 6,6oo;6oq 1
.
*
.
i
and
showing
are
>
.
12/30/44
Issue-
7,733,065
„<tnl Urr
Unearned Discount
,
Bid Price
!V?<
Rrstny^stor?
»*
s
...
.
.
.
it
.
(Figures to the right of decimals are 32nds.)
Closing
Closing^
;.v%
3%
<
for
.
Banking Corporation
Items
'..O jf'i
1,233,843,937
Securities
International
Other Assets
*? ;i 7
.
Federal Reserve Bank
in
Ownership
Bank
.
.
|
79,784,670
.
.
.
The Governrnent bond market made substantial progress during
the year, which is shown by a comparison of prices at the end of
1944 with those at the close of 1945j; ^
^
t/$l;3,391,236
Portfolio 5,658,1 /I f )
ances in
145,8Q8,546
..
j
alltime
new
THE RECORD FOR 1945
'7.5 J
Bills.
make
...
7.v':vLess:"Own-Accept- "
154,6/1,4^5
.
Municipal Securitiej
and
J
;7
Accept-
on
an<?es and
v
.
2%s has been fairly sizable, in the past few days with indications
more important: after The turn of the year,
It is
reported that non-banking institutions in their exchange of the inter¬
•.••J.
Loan Deposit..$1,133,752,278;
Fully Guaranteed)
or
.
that it will 7be
■
$5,143,422,244/7f
•.
...
$1,102,166,681
.
U. S. Government Obligations
(Direct
p..^:-777-7''
.
.
in¬
Switching out of the bank eligible 2s into the restricted 2V4S and
-'ffe'?.:;£l
.
and
obtain
.
marked preference for the 2Y4S over the 21/^s.
Gash
to
.
7;^ich7the7hahk eligible issues
'
•
';u
-
.
.
..
The
of December 31, 1945
as
r>■:/'. \
DOLLARS
•
5
.
Incfcdipg'Doinreiitic arnd Foreign Branches
.•
fV
Si
;
in order
highs with Indications that they Will seek higher levels since
these bonds are still cheap when compared with the prices at
Head
—
eligible
.
...
.
Chairman
President
of the Board
Gordon S, Rentschler
77\
Lindsay Bradford
P,
■
■
prices 'took place among
1956 on, indicating that
MARKET LEADERS
New Orl.
THE NAHONAL CITY BANK OF NEW YORK
Vr
in
due from
"7:
.
■
increase
come
.
fewWv't
taken up to new alltime
were
7;7"77:Cc-<7'7r.-,7^7;'^-ddj:'.dd'7//7:.77.77,777]
.
9
*
.
The recent advance was again led by the 2 V2% due 1956/59, The
ORLEANS, LA.—Tlud'olf
The 2due
S. Hecht js engaging iri the in¬ first restricted obligation to become bank eligible.
1956/58, and the 2^s due 9/15/67/72, were among the largest gainers,
vestment business from offices in
with the latter .issue going to /prices that .took the yield under
the Hibernia Bank Building.
2,00 % for the first time.
As a result there are no bank eligible
bonds in the list now that give' a return jas higli as 2.00%, regardless
of maturity.
The last three issues of the partially exempts were
the leaders of this group, although new alltime highs/were .registered
by some of the intermediate terms.
in
244 Burwell Street
^
NEW
at
to' engage
•three-year term succeeding James
P. Nolan, Folger, Nolan & Co.,
"'i'rV,
•
>
high levels because; of the fear that'prices will continue
tops. 7.
Lord, Abbett & Co., Inc.
m
of its
restricted issues, many of which also
Fund, Inc., and Union Trus¬
Funds, Inc. Mr. de Graffen-
Hecht Opens
BREMERTON, WjASH.—Donald
McReynolds has formed Mc¬
V ^
to advance.;. 7. The scramble to get money invested was not confined
to the bank obligations, since there was a good demand for the
come.
McReynolds & Co. Formed
District 11 to the Board of Gover¬
nors
one
at preseht
j
Treasurer of Affili¬
as
'''
standing amount of intermediate and long-term bank eligible obliga¬
tions in the makingv funds wehe put to work in the available issues,
,
ried had been Assistant Treasurer
Arnold,
N.
as
ated
teed
v
Jan. 1, 1946, it
by ..Andrew J.
on
of the firm and Mr. Birming¬
ham served
W
7'"
The Government bond matket moved
1945 in
Mr. Scott is general sales man¬
of
on
'» 'k'
L
7" '*-)
^•'
York
New
Lord, President.
ager
Reporter
r'1'-' '',f
through the final days of
sharpest upswings of the year. >7, The buying that
carried prices to new alltime highs v/as not for "window
dressing"
purposes but largely for investment.... With, no increase in the out¬
Street,
'announced
was
Union Securities Corporation.
C.
Robert
President
Vioe
the
to
Wall
City, effective
tlje firm.
Comdr. Grant, a graduate of Har¬
vard University, was formerly a
partner in G. M.-P. Murphy & Co.
Comdr.
Dayton, a graduate otf
Princeton, was previously assis¬
Bayly of Philadelphia, was chosen
'Secretary^
rU
». •.** . 7*.
.7- William W. Mackall, Mackall &
Coe, Washington; Edwin R. Hor¬
ner, Scott, Horner & Mason were
succeeds
Inc.,; 63
with
associated
now
.
Mackall
Dayton, Jr., both
in
the
commanders
*
By JOHN T. CHIPPENDALE. JR.
Treasurer of Lord, Abbett & Co.,
United States Naval Reserve, are
Co., Washington, was named
Chairman,
and iMartin- J.
Vice
and Eugene: A.
Birmingham have been elected
Vice Presidents, and Robert J. de
Graffenreid has been elevated to
that Robert Grant 3rd
lieutenant
James H. Lemon, Johnston, Lemon
Mr.
•
Wilson
J.
and
Association of Securities Dealers.
Thursday, January 3, 1946
.
.
.
..
D
THE COMMERCIAL & FINANCIAL CHRONICLE
Number .4452.-
Volume, 163:
^'De¬
rather,'narrowly confined.
Newfourger SHarto
[ ,;(Continued', from- page 16) ;
[that "the importance of high
regulatory bodies to grant rate in¬
-
creases^
[Oh the second point, in^
dications
dustrial production from all an¬
are
that the
war
years
of such bonds
not
are
such
to
as
attract widespread buying among
small or moderate sized investors
and,
Harold W. Davis With
Partnership Changes
the large amounts seeking
investment, current interest rate's
spite
■I;
37
.
Laird, Bisseit, Meeds
Newburger & Haiio, 1419 Wal¬
nut
Street, - members of the New
Laird, Bissell & -Meeds, 120
Broadway, New York City, mem¬
.
large individual
York Stock and Philadelphia Ex¬
gles—economic,political, social, represented merely ~a truce in the
bers of the New York Stock Ex¬
buyers, tax exactions are still such
and especially from the standpoint! strained relationship between the
change, announce that Harold W.
as
to limit accumulation and to changes announce that Harry Graadvocates of public and private
of alleviating the existing menace
bosky has withdrawn as a general Davis has become associated with
divert/many in this field to less
of inflation—suggest that a solu¬ ownership and 'that
the deepconservative selections in their ef¬ partner in. their firm, and that the firm in its New York office.
tion ' must
and
will be fpund, seated antagonisms between the
Herman P. Liberman.S James W. Mr. Davis was
formerly manager
fort to build up their reduced net
Wolff, S. Nathan Snellenburg and
though a. troublesome intermedi¬ two are soon to be revived."
incomes."
of the bond
ate period is probably to be ex¬
de^rtmebtpbl [?tlie
Robert Sf Thanhauser rbave beep
The Survey concludes that con¬
New York office of F. SI Mose'ley
admitted as, general partners,
pected.
Certainly,. rather than, Municipal Situation Encouraging traction is
probable in. both the
In the municipal market, the
risking the retarding influence of
supply and demand factors in the
price controls," the Survey says, Survey finds an anomaly in the
bond market other than in - the
Maj. Granger Honored
"it is desirable to eliminate at strengthening tendency for taxfield of government obligations.
\
Major David Granger, who re¬ Eugene Tompane to Form '
first opportunity all but those ob¬
exempt securities in the face of a
"Even so, the demand gives prom¬ cently resumed a
partnership in
viously necessary. The resulting probable increase in supply and a
Own Investment Business i
ise of exceeding the supply of new
Sulzbacher,; [Granger & Co., Ill
increase in production and the
known decrease in tax rates. This
even among
-
of investment quality Broadway, New York City, mem¬
which, coupled with reasonable bers of the New York Stock Ex¬
certainty of continued low inter¬ change, after discharge from the
est rates, indicates Sustained high Arfriy Air Force, has been awarded
prices for both; primary and sec¬ the - Order of British Empire of¬
tively small, while net increase in
■
'
ondary investment clossifications." ficer class.
the supply of tax exempts (new
issues over retirements, both Fed¬
eral and municipal) will" also be
relatively unimportant."
The most encouraging aspect of
competition
be relied upon to keep price
coercive workings of
may
while
hand
in
levels
also
only be explained, the Survey
states, "by investors* reasoning
that tax reductions are and will
continue for some time to be rela¬
con¬
tributing toward / the solution of
the many other troublesome prob¬
lems confronting the country.
"The
vast
-
in the
increase
securities
Eugene F. Tompane will shortly
can
in¬
dustrial
capacity of the country
growing out of wartime expan¬
sion of facilities, the well-ordered
financial position of; the larger the municipal situation, the Sur¬
factors in: industry, both: current vey states, is. the strengthened
and longer term, together with position of most local govern¬
the desire and ability of consum¬ ments and the resulting oppor¬
ers to buy all that, can be pro«^
tunity for reasserting their tra¬
diiCed," provide - ah vunparalleled ditional importance as autonomous
base for future activity if wisdom governmental bodies if wisdom
prevails in the solution of the arid restraint are exercised. \
existing' retarding problems."
["By wisdom and restraint," the
open offices to engage
curities business.
was
connected
in the
with
Distributors
Group, Inc.
THE
,
-
Survey continues, "is meant dis¬
crimination in accepting Federal
aid in projects essentially local in
Level
Railroad Financing at High
"Railroad financing, almost ex¬
clusively senior and refunding in
character, constituted a higher
character
percentage of total corporate fi¬
nancing in: 1945 than in any year
since 1934," according, to the Sur¬
vey* "To other conditions favor¬
able to refunding, the activity in
railroad financing reflected the
great improvement % in railroad
credit which began in pre-war
years and gained momentum along
with
increased
the
prietary projects
the
of
*
r
•
k-
by;
■/
«
naturally
7\
^
1
!"
'1,«
0/fe (ffl/i/edt amt QPttraej/ 0$an£
S
>:
*
•!/
-J
V
0&cnthU//lama
oi
anezec/ J £03
governments is
ati overall survey of the sources
of state and local
of tax
war
whether
is
concern
1
ly to be advancing and when de¬
mand for improvements may often
be more general-than wise, Also
desirable for the future soundness
in
chief
more
lying in the field of private enter¬
prise, control of expenses in the
period ahead When costs are like¬
earnings and
benefits
resulting
years.
Of
v
usefulness, absti¬
from ihVolvment in pro¬
nence
BANK
NATIONAL
Jo
and
,
revenues
with such revision
apportionment
of
the
whole
Statement
that each branch of government
th^ railroads can maintain their may discharge its functions wfthimproved status in the years out call or dependence on the
ahead. On the one hand is cited other."
the highly competitive situation
Contraction Probable in
likely to develop in the transpor¬
Bond Activity
tation field, the eventual over-all
reduction in traffic, and the prbb-t
Looking to the future, the Sur¬
able increase in cost of both labor vey suggests that with the re¬
and material. Oh the other hand-, moval of the excess profits tax,
is 'offered the reduction in fixed effective Jan. 1, 1946, one of the
charges growing out of extensive chief contributing factors to the
refundings, debt and tax cuts, the wave of refunding will have been
great
improvement
in current eliminated. Though the other two
"position, the increased efficiency factors responsible for activity in
"V
of Condition, December $1\ 194?
,:;Jl|i:i#E.SO U:RCrt S
-
.
-resulting from a( long-term pro¬
gram of rehabilitation and, new
equipment and, importantly, the
new awareness
of the place of the
[railroads both as a fundamental
military and peacetime transpor¬
tation facility."
M'
,,
' u"
i
\
\
i<"'•»»
'i'
J:;Cash and Due from Banks
State, County and
namely,
factors
in; the
labor
force
Customers'
Bank
postponed and needed improve¬
are also assured, though it
ments
the
volume due to available cash
of
assurance
a
well
maintained demand for output.
'
"Chief anxieties ahead are the
increase
probable
costs
a
production
and whether there
revival
publicly
On
in
the
of
pre-war
owned
is to
be
activity
in
power
first; point,
projects.
advances
in
labor, fuels and materials may be
offset in part by a reduction in
taxes
and - capital
charges, but
beyond
that,
relief
must
neces¬
sarily lie in the willingness-of the
'
i ■;
'./'I.
..
2,550,965.05
2,661,361.17
Liability Account of Acceptances
m
Buildings^ J
$868,517,977.44
;
;
J
LIABILITIES
$14,000,000.00.
Capital Stock (Par! Value $20.00)
Surplus
||f||
s.
Undivided Profits
Reserve for
Dividend
.
J
:
| J. |
Taxes! II
.
;
.
s
.
.
.
.28,000,000.00
.
V
,
..
(Payable January 2, 1946)
.
12,443,740.45
'
.
.
3,098,674.89
'
.
.
Unearned Discount and Accrued Interest
Acceptances
.
.
.
Less Amount Held in
.
.
.
.
875,000.00
157,436.35;
$5,663,549.00
.
Portfolio 2,480,239.69
nicipal issues to defray the costs
of
employed, the ade¬
quate production facilities, 'the
simple.. reconversion problem and
seeming
;
40,022,270.214
Discounts}
-
favorable
/;• 13.895,391.83:
90,873,215.73
Accrued Interest Receivable
-
Other
Municipal Securities
523,752,891.25
.
•
Loans and
Utility Outlook Favorable
is it probable that new debt obli¬
Commenting on the utility situ¬ gations in the corporate field will
ation, the Survey observes that increase materially, in part be¬
a majority
of companies in the cause the necessity is lacking and
electrical and gas fields have by in part because of management's
now
taken advantage of recent reluctance to add to its fixed obli¬
favorable
market conditions
to gations in View of the long-range
situation are the relatively small
I
.
...
Other Securities
low
strengthen their capital structures uncertainties ahead."
In the governmental field the
through reduction of interest and
preferred dividend charges, better opinion is - expressed that con¬
spacing of maturities and better tinued Treasury deficits ; appear
provision for debt reduction. "As inevitable in view of existing de¬
a result it is safe-to-say that fixed
mands and commitments, hence
capital charges now " represent a new emissions of Treasury obliga¬
lower
percentage of operating tions, though in reduced volume,
costs than at any earlier period may be expected in the period
in
the history of the. industry. ahead. "Increased state and mu¬
$194,761,881.20
...
TJ. S. Government Securities
interest rates
and improved credit position re¬
sulting from good earnings,
main and may reasonably be ex¬
pected to continue for the fore¬
seeable future, "the volume of re¬
funding operations is likely to di¬
minish in l;he [period ahead. Nor
1945,
«•
is
questionable whether these will
immediately in substantial
appear
Deposits
United States
All Other
Treasury
Deposits j
.
$168,067,067.66
638,692,748.78
806.759.816.44
re¬
serves, to the dearth of supplies,
and to the necessity of more de¬
,517,977.44
finitive planning before new pro¬
jects
the
eign
can be embarked upon.
For
present, the prospect of for¬
financing
through
private
channels appears wholly unprom¬
ising."
*
■
Turning to the demand side, the
Survey finds it probable that in¬
vesting in corporate and municipal,.bonds will continue to>be
Metiibtr of the FeJsra! D.posii bisunvui Corporation
«■
•»
.r.
g
se¬
[In the past he
THE COMMERCIAL & FINANCIAL CHRONICLE
under
Free Flow of World News Vital to Our Economy
coverage and censorship
rest of the world.
(Continued from first page) /
given the courtesy of an ex¬
planation for the reversal.
The sorry
episode emphasizes
the central fact about the job of
even
in the dark
World's Financier We
Need Access to the Truth
agreement
finance into world fi¬
Woods
Bretton
The
meshes
our
1 Colossal loans to
nance.
foreign
nations have been made or are in
making.
The machinery of
foreign trade, largely stalled by
the
simply official favors which may
be restricted or withdrawn with¬
political .conflicts, must somehow
blance
one
aspect of the prob¬
has
getting
been
circumstances
con¬
to the truth about
access
events, personalities -and condi¬
in other countries is obvi¬
lot of
a
these
tinuous
lem of the free flow of world news
which
of
Under
out warning.
This is
restore a sem¬
normal global health.
to
unfrozen
be
future facts.
access to
.
.^est pf the world sufficiently ig¬
norant
extend
to
about
their
home
Mussolini's Italy, too,
a formal censorship.
credits without knowing all pres¬
ent facts and assuring himself of
the
As
they may have are not theirs as a
matter of international right, but
1
refuse
Hitler, up to the war, there
110 formal censorship, ; Yet
Nazis managed to keep the
i
the
The average busi¬
would
.
reporting
from
a
totalitarian
country—the fact that correspon¬
dents enjoy no basic rights of any
sort
Such limited privileges as
■
abroad.
nessman
was
affairs.
did not have
During the interval when
Yet busi¬
'
cen¬
spokesmen talk about billions
The recent to-do about
make
censor¬
his
task
bit
lighter by
much red tape.
a
eliminating that
or
the
definite¬
Soviet
re¬
tions
should be
though not nearly the attention it
deserves.
Americans, and espe¬
cially American businessmen with
a stake in world economy, cannot
be indifferent to questions of news
ously of the greatest importance.
The amazing part of it is that
men who would not dream of do¬
whole country. Indeed, the sooner
the problem of adequate and un¬
to Russia and to Soviet-dominated
adulterated
small
ing business in the dark at home
knowledged and faced by Ameri¬
ca^ the more chance there will be
of solving it at least in some
may
measure.
such
Soviet's Lifting of Censorship an
alter the situation, as a substitute
for the real thing.
world
There
the
is
news
in
ac¬
has
content to do business in the
Let
Bankers Trust Company
-
'' r
?
1
-
j
«
>
V1
r>
• r"
'
'
■>'
'*7
ft'
'
'
•:
" J.'',,; ; V''>
X
/
*
countries
gent
some
be
Moscow
pressure
made
lifting
contin¬
of
news
The danger is that we
accept
empty
an
gesture,
the abandonment of cen¬
as
Far
Ninety-nine Americans
out of a hundred, reading that
Russia has lifted its censorship,
assumed that from that point for¬
ward correspondents in the Soviet
land were free to report as they
pleased. All ninety-nixie of them
'
NEW YORK
the
the
upon
blackouts.
episode.
-'? ' "
«
to
return
me
which
does ' not
really
significant than the
more
formality of censorship are such
matters
free
as
to
access
news
unrestricted
rights to
travel in the country to which a
correspondent is assigned; elim¬
ination of delay and tinkering
with news dispatches in the proc¬
were completely wrong.
Formal ess of transmission; the fight of
censorship is only one phase, and newspapers And press agencies to
by no means the most vital, in the send in reporters of their own
control of news from totalitarian choice even if
they happen to be
nations.
The
sources;
\
.
distasteful
correspondent is hemmed
Moscow
erally
re¬
where
as
*
a
-
is in the making, un¬
which the Krem¬
lin wants known.
He cannot dig
news
less it is
news
-
by approaching officials
directly; they would be risking
up
news
their
freedom
and
-
their
even
enough to give him infor¬
mation, he knows that he would
>
:
>
putting them in the gravest
danger by using it.
Time and
again, when I was in Russia for
;
the
into
'
stories
!
United
possession
What
Press,
of
I
came
exciting
which I did not dare to publish
because my Russian acquaintances
-—though they had nothing to do
with'the information—would have
been
suspected and
subjected to
interrogation
or worse,
To all intents and purposes
,
foreign correspondent in
tafian
local
a
the
totalis
capital is isolated from the
population./The
few
.
'
na¬
tives who have the courage or the
innocence to associate with him
risking their necks.
In the
analysis he is dependent on
newspapers, local broadcasts
and official handouts Lor his news., '
are
final
the
All
of these sources are official,
"angled," Carefully calculated to,
rather than reveal the
truth.
Even the best foreign reporter thus becomes unwillingly
a transmission belt for the dictacover
tor's
Correspond
is the actual picture of
Germany life for the working foreign cor-
in
known that
dictatorial
Virtually Prisoners
fective in keeping the truth from
the outside world. It is not gen¬
DECEMBER
the
to
gime in question.
in by any number of other restric¬
tions which are actually more ef¬
CONDENSED STATEMENT OF CONDITION,
Foreigii Office;
permission precisely to the places
^
seem
Empty Gesture
>.
been
Congress for the idea that loans
sorship,
•
of the
be
attention since the end of the war,
of
ment
naive
ly "displeasing to
gime.
Press And other professional press
executives.
It is — or at least
concern
anywhere beyond '
the
suburban' area he requires
permission from the Press Depart- 1
filed stories hostile to
Cooper of the Associated Press,
Hugh Baillie of the United
Mr.
1
prisoner 4n the capi¬
a
travel
heads if they talked without au¬
thorization from higher up.
Should hohrofficial Russians be
Rut
the exclusive concern! of Mr. Kent
the
To
only a tyro, or a reporter
eager to be expelled, would have
ship and related problems is not
—
virtually
tal.
matter of course he is denied such
sorship took a holiday in Moscow,
of credits to Soviet Russia and the correspondent could file his
other
dictated
areas
without dispatch directly at the cable of¬
bothering about the news black¬ fice, without benefit of a cen¬
sor's seal and signature.
outs.
This did
ness
respondent in Moscow today?... He
is
:
*
up
'
r
^propaganda.
This is the news reporting pic¬
ture in Moscow after the war.
It
of course, even more strin¬
was,
gent during the war. And it was
better before the war. It is the
no
ASSETS
:
~"—
:
Cash and Due from Banks
U.
normal state of
;
Si Government Securities
Loans and Bills Discounted
.
.
.
.
;
..
$
378,425,210.74
4
894,686,409.15
.
.
.
14,435,886.11
Other Securities and Investments;
44,467,867.21
Municipal Securities
Real Estate
Mortgages
Banking Premises
.
v
.
;
i
.
.
.
;
.
;
Receivable
.
.....
CuStomers'Liability
Acceptances
.
;
•
ir '). v,v
>
.
.
;
.
165 Broadway,
■
as
New York
1,036,622.97
.
of business, December
U. S. Government
State and
^
72,606,529139:
57,937,490.85
__
275,847,577.42
; ; ;
Undivided Profits
Dividend
Deposits
33,317,049.61
.
.
.
PayableJanuary 2,1946
1,050,000.00
............
on
Accrued Interest
Acceptances^
and^ccounts
Receivable-
3,420,572.45
Other Assets—
1,885,907.59
fpr Taxes, Accrued
Expenses, etc.
.
.
.
,
...
.
.
'•
Vv'
f
'
LIABILITIES
>
•
"
.
V
V;
8,321,798.28
Capital Stock.
:
■
Surplus.
Undivided Profits
Acceptances
Outstanding.
;
$
Unallocated Reserves-
2,332,749.71
Reserves for Taxes,
Less Amount
in Portfolio
1,154,134.78
.
Other Liabilities
...
.
.
.
.
.
1.178.614.93
3.084.418.94
4,880,137.80
Expenses, etc.-
Acceptances Outstanding
1,125,000.00
.
$4,365,550.30
(Less
own acceptances
held in portfolio)
$.1,921,945,613.07
162,17.1 -97
Securities in the above
statement are
carried in accordance with the'
method described in the annual report to stockholders, dated January
11, 1945. Assets carried at $424,516,297.89 have-been deposited to
deposits, including $399,015,290.68 of United Sta tes Government
deposits, and for other
:
-**
1,524,160,575.09
'
Securities carried at
$369,330,987.61 in the foregoing
deposited to secure public funds
other -purposes required by law.
statement are
and for
purposes.
Member ofthe Federal Deposit Insurance Corporation
| Assessed Valuation $4,611,667.14
Charter Member New York
•
practising
foreign
many press
are
executives at homeI refer to the psy¬
unaware.
chological pressures under Which
the
accredited
reporter labors.
These are so terrific that only the
boldest, with the greatest intellec¬
tual integrity, can escape it.
In a free Capital—ir\ Washing¬
ton or London—a foreign news¬
paperman may take a slant op¬
posed to the government without
affecting his living standards, his
news sources, his social life/ After
all, there are plenty of Americans
Clearing House Association
Member Federal Reserve System
Member Federal Deposit Insurance Corporation
'
*
Britons 'who share his slant.
some
news
of
sources
are
sealed
his
bias,, others are
opened wider.
If some officials
or colleagues are offended, others
are pleased. In short, he has room
for maneuvering.
In Moscow—<>r any other totali¬
tarian capital—his life becomes
one
long torment when he is
tagged as "unfriendly," which is
to say unsympathetic to the re-.,:
girne.
All doors are shut in his
face.
Invitations to official func¬
tions
$1,637,503,776.23
J
■
4,203,378.33
1,034,057.22
Other Liabilities
Deposits [including Official and Certified !
Checks Outstanding Sat.07'?. 3 38.65)
every
because
2,050,012.89 102,100,627.84
Dividend Payable January 2,1 $46.
:..
n'respondent knows but of which
public at large-r-and a good
If
$25,000,000.00
65,000,000.00
10,050,614.95
.
~
on
the
and
"
-
secure
216,226.84
3,54^,29527
__
1,749,590,468.60
1
Reserve
•
_
Credits Granted
15,403,262.71
....
.
1,159,743.00*;
;
Mortgages.
$ 143,317,049.61
299,793.50*
__
Other Real Estate
80,000,000.00
.
General Reserve
Banking Houses
$30,000,000.00
■
790,555,297.87
Loans and Discounts
' 0.^ •'*
Reporters
Which
$258,593,486.o3
Obligations.
Municipal Bonds
t-/Irili
TJhere is another consideration
Acceptances and Call Loans 171,435,855^7
Other Bonds and Investments.
Surplus
->4
JPsychological Pressures
31, 1943
.
the regime can
as
it, and whose personal life
i..
-
"
Cash and Due from Banks
Bankers'
; : ; ;
close to nil
is under incessant surveillance.
;
Ac the close
But
"spy," whose facilities for obser¬
vation and gathering facts are
•.
5,163,632.66
in its harshness.
principle is unchanging; the
foreign corresjpbhdent in A dicta¬
torship is treated as an authorized
CdNDENSED STATEMENT OF CONDITION
•
$1,921,945,613.07
Capital
•
■
the
make
ASSETS
.
:
unrelieved
/
Founded 1824
on
.
.
.
w
St
~
•
*y
TRUST COM PANY
1*5,230,350,64
"
Accrued Interest and Accounts
*
bank
59,258.50
■;v.;
f
Chemical
568,440,375.09
.
State and
affairs, rather than
exceptional phenomenon. True,
there are periods when the con¬
trol is milder, periods when it is
an
.
cease
local
friends
to
arrive.
he
may
The
few
have
ac¬
quired become frightened of him.
His
American
colleagues — who
are
also his competitors—get all
news
If
out,
breaks.
he has
any
limited.
If
he clears
usefulness
is
stubborn, the
sense,
his
he is
because
government finds ways and means
\
of pushing him out.
In my own V
case, Mr. Litvinoff, then in Wash- . |
jngton;, induced the United Press
fo recall me.
It was a period .;-,
when "good relations with Rus-
keehied more imporjbant than
loyalty to a correspondent by. his
Pi
der." ;iAs
editors—a mistaken policy,
which helps undermine the status
of our whole foreign press corps*
■
as
make
we
endangered.
way,
;
'
*
a
:
„
The Soviet's Concept of News
like
its
of
concept
news,
Government
of "democracy,"
is at the very opposite pole ffom
our* own. >: To the Kremlin nCwS
is
concept
antee
slave
In ra¬
about the out¬
of
can
course
system
exercise control over all lines
activity
.
and
the
underwrite
consumers' markets
through Fed¬
expenditures, and this would
mounting deficits for an in¬
definite period.
eral
mean
.
^
*
i
/'
-
•
\
i
i
11
,
c
( y
>
-i
should
realize
to
tion
that
it
is
not
lines
of
tion in demand at the consumers'
market
place. Even though we
opened up the floodgates of pub¬
lic funds to sustain full
operations
would
in
.
be
of
this
an
as
no
it
in
case
depression
of
such
had in the 1930's. To
sus¬
The full-fledged adoption of the tain
our
purchasing
power
in
purchasing- power theory at this such an event, it would be neces¬
least stage' ivould be most
Being human,1 he, accommodates
unfortunate. sary to bolster, the world economy,"
himself to reality.
acknowledge that it will, be busi¬ With the
V
;lr
f ederal debt rapidly ap¬ and such a proposal would of
ness
done in the... murky atmos¬ proaching ' the 300-bilIiori-dollar
^ Thus it. happens—and we might
course be fantastic.
;
V
as;:well -face ;the truth-f-that' in; phere of a news blackout.
mark, - and with the post-war
The- plight in which we find
'
i■
ii/'.i
nine cases out of .ten the perma¬
budget estimated at from three to ourselves is
largely
the
out¬
Essential Steps for the Free
nent Ainerican^
five times the pre-war period, we
growth Of the : policies we have
Flow of News
Mussolini's^co^
he?
find ourselves on the mountain followed
during the past Jifteeri
Not only; press leaders but;■ all
come propagandists - for; their
peak of finance where descent years of deficit financing, and it
hosts.
Ditto for those in Berlin public-minded A m e ri c a n s; it would
be: perilous.
Our fixed has been greatly accentuated of
under Hitler and in Moscow tm- aeems to me^ owe dt; to ^ordinary
charges^-Federal; state and local course by the war. It is futile to
der Stalin;: The few exceptions Ahierican: patriotism
and r self- taxes plus interest on long-term search for a
way out so long as
found the going trio tough,. every¬ interest to support eyery effort prive te
debt—may exceed 30 bil¬ we continue down the wrong
to increase the free flow of
lion .dollars, In order Jo carry the road. We as a hatidri seerii' to be
day existence! fdr ;their < families
hewsj
tbo^ difficult, and. in? the "end had "•Thodgh; We cannot achieve! thetti burden without undue strain on in the same sort of
'
readers
.
mense
r
should.
at
..
.
,
.
.
,
areas
r
■
X'
t
;
all
go,elsewhere.,
i*It should be remembered/ntdreover, ;ithat .before; ran ; American
newspaperman is allowed to go to
to
.
mental
at;once, these
are
the esseh-;
tials for which wC must strive:; I
economy we shall need | a
minimum
national
income
of
pur
haze and con-;
fusion about finance as we 'were
about international affairs prior to
Hard
Work,
and
to
have
we
to
are
integrity
return
to
no
al¬
maintain
as
a
na¬
the funda¬
principles that have been,
for
greatness.
our
Thrift, hard work, pay-as-you go,
incentives for business
opportunities
cordance
based
prices
to
enterprise,
advance
with
upon
creased
ability,
in
ac¬
wages
productivity, and in¬
production
with
lower
among the foundation
stones of what is called the Amer¬
ican system.
Any radical
ture
are
from
depar¬
principles is re¬
these
actionary and unworkable and the
Utopian promises being made for
the
purchasing
like
a
mirage
the
final
and
doctrine
power
To
outcome
regimentation
,
advocate >• the
power
are
the desert, with
on
serfdom,
,
•..
but
we
responsible
economic
country,
avail
international
We
if
solvency
keep; ' all
^
Danger of Mounting Debt
Those who argue
;that^we f'cari dd
business with Stalin" in these im¬
in-his: attempt; to give his
the .unadulterated facts.
we
reconstruction,
ternative
blueprints for the future
any
Thrift,
Faced with the prodigious tasks
of
Activity
provided everyone
security in old fii In
and
Is
and Pay-As-You-Go
Impossible to Balance All Lines
activity operating indefinitely at
full capacity because of the varia¬
of
Remedy
guar¬
Feudalism and the old
work
also
that
our
expenditures
kept within reasonable bounds
by eliminating all unnecessary and
wasteful outlays.
possible
to
-
dom
but
are
out the proposal for full /employ¬
ment, the Government would have
high, ideals Of truthful and valor-' about Russian affairs to the out¬
ous reporting.
But he finds himr; side world. That concept is now
self
alone/ pitted
against- the imposed not only on Russia prop¬
overwhelming'pomp, power' and er but on all the vast area under
temptations ;; of ; an ^omnipotent Soviet domination—Eastern and
State.V;He. is riot, even sure that Southeastern Europe (with the
|his superiors' back: in New York exception of Greece), half of Ger¬
or : Chicago: will
back him |up. many and Austria, northern Iran,
should he run .afoul of official¬ Manchuria,
northern Korea.
!39
age. But the price paid was the
loss of freedom. In order to carry
side world to, its o wn: people And
A man arrives with
jobs.
with
political instrument.
a
tions information
than none.;
•
13)
,
Soviet
promise: better half a loaf of news
'
(Continued from page
s
days and the only consideration
fg^lhe providing of: ]obs^5^>:
Under certain •• conditions the
'
The
'
Attacks Purchasing Power Theory
an
free flow of news is violated and
the tempting
way, for:; the American reporter
in a country like pre-war Ger¬
many or present-day Moscow, is
to "play l:he^ game'' with thos^
power.
The psychological pres¬
sures are all the direction of comeasy
Russiav "propagan-
soon
exception, the very principle of
home
The
the
for
sauce
sia"
t
m
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume % 163 ^ Number 4452
theory at
a
time when in¬
flationary material is
is. to play, with
purchasing
so
abundant,
dynamite and to
threaten the well-beirig of the en¬
tire nation: Before it is too lajte,
Wri should formulate
policy
the
our
national
productivity which is
on
true
source
of
purchasing
The right of American news¬ about 125 billion dollars. In the Pearl Harbor. There is no easy power and which makes possible
papers, radio chains, press agen-; event that our income should fall !answer to our problems/But first a balanced economy, so that all
i i Russia
he must be granted an Ciea^
etC:Itd'^ehd-ii^en^nd^wdhie^' say to the level of the boom year of all We must face reality j and groups can exchange goods and
V. entry visa by the Soviet govern¬
of their own choice into all Chun- of 1929 of around 80 billion dol¬ scrap the
Utopian notion that Fed¬ services with one another.
ment.
If hisr past opinions raise tries.
v "
lars, our fixed charges would be eral spending is the key to pros¬
■\ doubts about his
nearly 40% of income, whereas
friendliness, he
2. The
lifting of censorship
perity. The Goverhrrieht Hoes hot
is crossed out as persona non
everywhere except under actual during the dark days of 1932 they create
J. R. Ray in Sunbury
income
or
wealth I but
grata. Once settled in Moscow, he war conditions.
were-only 27%. It is obvious,
;■
:■
i
j'
faces the danger;of being.denied
SUNBURY, PA.—Joseph L. Ray
therefore; that if we are to pre¬ merely serves as an agency for
3. Unrestricted
facilities | for
serve
re-entry every time .he goes put
private enterprise and i a the collection and distribution of is engaging in the securities busi¬
gathering news in all countries,
on vacation or to cover a story
democratic form of Government funds; obtained from taxes
which means access to officials,
;arid ness from offices at 19 North
beyond^ the Russian frontiers.
full rights to travel, without police^ we must see to it not- ohly that the proceeds of Government loans Fourth Street. In the past he was
I recall meeting: a well known
escort; - elimination of wire-tap-r our ecpriomy functions effectively, upon Which interest must be paid. a partner in Ray, Johnson & Co.
■f;i correspondent back, from Russia
ping, surveillance and other forms,
of .espionage pressure.
•J about to address a luncheon meet-,
t
4. Prompt arid unimpeded fa¬
'i v ing of the Overseas Press Club in
•M f:
h ; New York He1 knew me. by repu ¬ cilities for transmitting news' by
:
>■
f
•
.
t
.
...
..
.
„.
.
.
|li|g
tation
to make
my acquaintances | At; ofte point
he leaned;, over andn whispered:"
f,.
radio, cable
former; Moscow man
a
as
and;;was; trulyr pleased
mail.
or
DIRECTORS
.
J. P. MORGAN & CO.
'
To thesevI would add
tion
.
which'
editors
concerns
rather
than
a
crindjy
'
/
American
foreign cen¬
INCORPORATED
"Gene,
...
,[
'
<
everything you've ,de- sors.
The correspondent
in :a
■
your- .Assignment -in;
,;iptalita^iari:v'couriti^r vhakpril^itlfe;
Utopia' is still true—only-, more prestige of his 'newspapers fOr
so."
; ;'-U
'■ radio chains ' to pit; against : the
Then he got up and. madeia
might :of the Statk ^ Without Coin-:
speech which ; conveyed Ar picture plete, • unquestioning understand¬
the very opposite,- of, what* I ;had
ing and; support by his home ofi
pictured mmyibook ^Though he ficeheis a "dead duck;"
UnhapSpoke; guardedly and caimly/v,the pily; that support'is-nbt always;
average /listener
gathered * that forthcoming;
The:' "diplomatic^"
every thing; was -'"pretty ' wonder^ doubletalking: correspondent,
scribed
in
.
f,
;
!
|.
;
1
.
| ful" in. the Socialist Fatherland. I
content
to
knuckle
under
leffwqwell it
Chairman. Executive Conifiiiitfe
;
horrified but I-knew the rea-;
*
f could not risk being -barred:-; ?His
!; job was tri report the war from
f. the Muscovite angle and he could
not afford to be excluded.
;
Some
weeks
/
;
mission
ago
the
Central
G^erhihcht
to
:
included
Edgar Snow of the " Sat -
notorious
for, the
.
.
as
long-term apologists
Communists; and: enemies
of the Chiang Kai-shek, government.
.
s
American
urday Evening. Post?/ and rothers
j
j
seve ral,
writers to visit; the civil war area
in North China.- The men involved
.
Their exclusion
tested,
and
;
rightly
was
HEXR.Y C,
re<
f porters, that's their privilege.
;
The
remarkable
partof' the
story, however, is: that the people
who showed such immense
indignation over China's restrictions on
American^; correspondentsi
rXZ
I.
f
genuine
we
solution
of
hope for
the
problem
& of free news-gathering unless
?. until
,
we
for
recognize
the
that
Chinese
a
and
what
is
goose
is
Other Bonds and Securities
.
......
r
;
1,200,000,Q0
(including Shares
of Morgan Gr en fell 4' Co. Limited and
Morgan 4" Cie. Inccrporated)..
.v ,.
.
..
17,117,461.09
150/89,136.62
Accrued Interest, ^Accounts Receivable, etc.,
2,530,442.21
Banking House
Executive; Vice-President "
Morgan; &. Cie; Incorporated
3,000,000.00
—
liability of Customers on
-
CHARLES S. CHEST OX
Vice-President
.......
Letters
of Credit and Acceptances.
Less
Prepayments
H. P. DAVIS OX
•
12^.03/82.96
Municipal Bonds and Xotes......
Loans and Bills Purchased.,
»
Investment Corporation
$
5,959/23.91
664,213.27
5,295,010.64
^M^M§m^^^$706/29,269/2§
*
CHARLES 7). DICKEY
Vice-President
*
I-;.;
X. D. JAY
;'" President '-Morgan & Cie.V
^Incorporated
...
THOMAS S
;
-
LIABILITIES
Deposits
$715,457,446.25
Official 'Checks Outstanding
LAMOXTJ
-Vice-President
13,531922.50
$728,989,368.75
-
Accounts Payable and Miscellaneous
Campbell Phelps
Partnership Formed
<
Announcement is made that
X-
5,045,039.27
Acceptances Outstanding and Letters of
'
Credit Issued
;
JUXIUS S. MQRGAX'
as
AL FUED P; St OAX jR.
Chairman General Motors
-
the old firm at the same address,
Pine Street, New ;York/ City.
of the found¬
Kenneth C. Ebbitt, who had been
associated with Lehman Brothers
since 1933.
"
-Campbell. Phelps & Co. special^
izes in municipal bonds.'
1
r>f
;
5,959,223.91
Capital.
Surplus,
;..
20,000,000.00
20,000,000.00
.
Undivided Profits.,
General Reserve
6,378,366.69
10,457,270.60
.
'Corporation
un¬
riame of Campbell, Phelps
Co. eoritiriuirig the business of
one
Railroad Company
TP, 4, MIT C ItELL
.
Roger S. Phelps,
i
Vice-President
Campbell, Phelps & Co.,
has beem dissolved; and a
partnership has been formed
^
t
:
of Dec. 31
Inc.,
Liabilities.
President Nctv York Central
m
New
.
cannot
467,984,871.45
State; and
.
^President State Street
without
for behavior, ers of the original firm, continues
culpable in others.
I this business in partnership with
considered
submit that
> sauce
-
dp-
70
j double
: from
responsibility
&
C. R. A TICIX
GUSTA V METZMAX
vastly
course
...
SfocUol fhfi Federal Reserve Rank...
BERMijRD -S\ GARTER
clearly: labeling
it as such; to find ways and ritearis
of evading censorship if the inter¬
ests of truthful news for fhe cus¬
tomers back home requires it:
''
&
serious
more
§ of
ASSETS
$13/,208,564.25
PAUL C. CABOT
.
'■
der the
restrictions
'
United Stages Government Securities........
-
to refuse to transmit official prop¬
some*
overlook
.,<'7 ,v»*v
Sanies..........
Vice-President
;
encourage correspondents abroad
to take the risks of truth-telling;
aganda
AX.DEliSO'x
Xice-Presidcnt
■;
Hip
graded, falsified news. American
press - policy should be, rather, to
imposed as matter
by Russia. This strange
Standard exempts Russia
■\ how
of
•'
»
pro-
| pro-Soyietn. pro-Co.mmunist:
;
coin
ALEXAXDtiRl
AR TUUR, M.
t; r-
the
'
Cash.cn UtandL and Due from
,Yice-P.re$ident,i
m
by' • the"
; so,
American press.
If the "Saturday
1 Evening Post"., and.; other- Ameri-;
| can publications select to send
?
in
*
-
,
fromViritimate perslirial
observation that we have paid for
attitude
v
*
'
■
I know
this
.
-
President
V:
dictatorship.
I Condenxed Statement Of Conditionf December" 31,1945
v
"
ferred by his editPrs. to the "trou¬
ble-maker" who falls out with the
| • son for
#
GEORGE WHITXEY-V
totalitarian hosts/; is top often-pre¬
this manV double-talk; He
^ wasgoing; back to MoscOw and
was
r
.
•
•;"
his
to
|
tfEtykfOHK:
Chat)
$796,829,269.22
E.TAPPAX STAXXARD
'
x
President
Kennecott
Copper Corporation:
..
>-
•'
'sS1#® ft?*
JAMES L. THOMSOX
Chairman Finance
/
Committee Hartford Fire
Insurance Company; #.*
? '<of; if 1
if
arc pledged to
qualify for fiduciary powers, to secure
public monies as required by law, and for other purposes.
statement
.
JOHXS. ZIXSSRR
President
Sharp & Dohme Inc.
Member Federal Reserve
Member Federal
System
Deposit Insurance Corporation
J:
THE COMMERCIAL & FINANCIAL CHRONICLE
::
teachers and State employees. We
now have in this fund almost $20,-
by the Citizens Committee for
Military Training of Young Men,
Johnson,. Treasurer/ stated as
fund
Assembly will be that this
-
At
the
principal and interest, be set aside
•and invested.
The General As-
the
J
a
have no Gen¬
amount
amply
take care of the principal and in¬
terest as it becomes due, , *
'<•
r
purposes,
ties
and
funds
of
In
This
was
General
invested
of it
pose
the
fund
can
set
capital
reserve
up
on
hand for
meeting
the
Administration's
roads
.-
will
and
be
does
the
cials
needed
v
1
;
"■""
the
Truman
plan for peace¬
military training
provide for conscripting
into thd nation's armed
been
given by offi¬
been
the
War
and
now
of
;
military train¬
made that because
we
versal
needed.;
statements
"It
lar
•
:
"
:
'
-
7
,
-
-
.
,
I
\
'
'v-
..
'*,<»
v
L
*
„
VW: U
i
s
X
-
r
x K'j-
«"*
'
iJ'+
r
<■
_v
1*
11
emer¬
with the
training.:
training
or
post-war
nor
employ¬
unemployment, have
the
on
any
urgent
need for the enactment of univer¬
mUitery^
\Writing; on. behalf ;of Secretary
Patterson;,. Mr.. Martyn said:' :
:
,
"You;
in- assuming
correct
that the universal
military - train¬
ing
program is entirely separate
from our normal peacetime mili-
tary establishment.
-
the
and
Regular
Army
The size of
the
Re¬
components will be fixed by
in Conformance with peace¬
serve
law
time
requirements for security
occupationforces.
En¬
listment- of military - trainees in
either the Regular or the Reserve
and
are
components would be strictly vol¬
untary;" In" fact, trainees; under
the contemplated plan, would at
that
time become
part of the arms
would they be
available v for z military
service
during a period of national emer¬
gency
except
for
pur-poses
of
no
and
military
of life.
reserve
necessary
Navy,
sal
training fur¬
nish men for the regular forces.
Such a procedure would be consenption, contrary to our ideals
and foreign to the American way
Corn Exchange Bane
<
trained
a
bearing whatever
con¬
intended
never
was
national;
"Universal: / military
ment
fuse the issue.
universal
or
trainees.;5Neither the number of
voluntary enlistments in the regu¬
regular Navy/ uni¬
training is not
military
These
reserve
an integral
part of the regular Navy. ..Their
training would be : distinct vand
separate from the regular Navy
successfully enlisting volun-
teers into' the
citizen
trainees would not be
War, and James Forrestal, Secre¬
tary of the Navy, about it.
p
.Replies were received by Mrs.
Smith from Secretary
Forrestal
and John W. Martyn, Adminis¬
trative Assistant to Secretary Pat¬
terson.1
Sending copies of the re¬
plies to the, Committee for the
information of Jay Cooke, Presi¬
dent, and members of his Execu¬
tive; Board/ Mrs* Smith expressed
the hope that the letters might aid
the Committee to clear up the
existing misunderstanding., v . \ "It: is true/'' wrote: Secretary
Forrestal, "that arguments have
have
Navy De¬
partments to Representative Mar¬
garet Chase Smith, Maine Repub¬
lican, it was announced on Dec. 31
for by
therefore, we have in {.his fund:.
not
men
forces
completely paid or provided
1951.
The. General Assembly of 1941
set up a retirement system for
without further action by
Assembly.
This
has
earned
$526,477.37;
General
that
time universal
be
be spent for any pur¬
purpose
of
Conscription
Assurances
spent as fast as possible, but on the
present basis if no more bonds
were issued the highway debt will
Assembly and it was
in bonds and no part
the
cost
P(MB—'
-J
needed for maintenance and con¬
of
obtain
fhfnimum
be: no
,
district
Not
struction
has
Contend Peace Training
We
completely liquidate this debt;
however, all of this money will be
by| the ; 1943/
up
debt
sanitary
one
to
$20,- S
addition, we have a
war
military training is it possible to
the Army and Navy filled
their quotas regularly, had
"cleared up the confusion."
Con¬
tinuing, the "Times" said:
V-- To clarify the point she queried
Robert P. Patterson, Secretary of
contiguous reduction
$248,919,000 and
improvements and equipment.
therefore have much more money
000,000 Postwar Reserve Fund.
of
gency is vital to our national defense.
Only .through universal
ing::
was
funds of $4,358,700 from surplus ;
special
$52,158,030.91.
This
f
there would
that
,
need for universal
govern¬
Carolina
North
set
have
142.94 and
in this fund of
of
28 cities and towns and 20 coun¬
highway debt is $33,540,we have a cash balance
The net
we
thar has been invested will
units
and today it is
4
eral Fund debt since the
believed
outstanding debt
the
$362,000,000*
shown
fluid and/all income is used for
seinbly acted upon my recommen¬ debt service, administration, main¬
dation and, therefore, for all prac¬ tenance and construction of roads.
tical
to
on
...
local
of
ment
no
The Highway Fund is a
:
peak,
of
to the 1945 Gen- ;
stated that North
!
Carolina was in the best financial
condition in its history and I rec¬ t sary that some new buildings be
ommended
that
an
amount of •/ constructed and this should be
•'
done if possible without issuing
money
sufficient to retire the
••.. - ■'
•, ■.: •' •,
.;
whole General Fund debt, both 7 any bond.
Ia my; report
oral Assembly I
The "Times" went
•
trained
augment the regular forces in
time
retirement system Mrs. Smith, having found from
and from
talks with
/,: ■ "•»
■;
..
; her. mail
individuals that they frequently
June 30, 1932, which was
•
building has been
done since the war began.
It
is, therefore, absolutely neces-
Practically
1.
relatively small)regular
a
^
State institutions.
ments at our
Jan.
to
any
in■ the nation.
improve¬
be used for permanent
fol¬
lows:
state that the committee said that
ably, with
this - date/ $20,526,477.37.
My7
7 recommendation to the General
year-round report on the
Status of the finances of the State
of
North
Carolina,. Charles M.
a
"With
forces,
Incij in New York City, accord¬
ing to the New York: "Times'' of
cial basis and will compare favor¬
and
News
Ill
000,000, of which $877,328.19 has
the earnings from the in-;
vestments.
It is on a sound finan¬
been
Thursday, January 3, 1946
;
services,
training,
a
nor
Act
/ without;
of > Con-
.
,
*
Trust Company
ESTABLISHED 1853
A Bank Statement that any
.
4
Man
or
. j
Understand
:
FULTON TRUST COMPANY
Olr.FiEW
";
Condensed Stalement
Our
Deposits Mud Other Liabilities
are
*
.
•
•
this indebtedness
meet
have:
we
]
CONDENSED
«
•
»
«
U. S. Government Securities
♦
•
«
.
and for other purposes as
Federal Reserve Bank Stock
•
»•
615,281,572.93
RESOURCES
required by law.)
.
.
.
.
«
.
.
•
Cash in Vault.....................$
1,050,000.00
,
Cash
'
•
•
Other Securities
*
«
12,672,451.51
•
.
,
First
Mortgages.
.
#
«
«
«
•
•
«
»
*
.
...
.
,
.
,
«
.
,
■
,
,
,
»
•j
; *
.
.
«
<
Loans and Discounts.
1,309,321.94
fx 55,445,680.79
•'
Liability
Banking Houses
49
Other Real Estate
on
Acceptances
.
.
.
.
Accrued Interest Receivable
Other Assets.
.
.
•
.
•
*
.
......
.
«
.
«
137,401.83
«
«
.
•
•
«
•
'«
•
.
.
.
...
8.973,027.24
1.00
2,221,065.81
•
295.608.91
....
;
.
7458JU2.88
407,233.06
$11,415,149.27
Government.Securities...,....32,660,868.53
'
Demand I^oans Secured by Collateral
i
J
5,974,354.87
1
U. S.
286,431*80"
Deposit ia F^cleral Reserve,
oh
Bank of New York; .....; t:v.
Cash on Depofijt in Other Banks,...
.
.
Customers'
21
STATEMENT, DECEMBER 31, 1945
deposits
State, Municipal and other Public Securities
v
YORK 6
78th Sis.) NEW YOKX
$178,687,416.88
#
»
.
($161,093,824.37 pledged to eecure
{Singer Building)
(Bet. 77tit
\: '
"
Cash in Vaults and Due from Banks
.
14V BROADWAY
1002 MADISON AVE.
$842*036 887.50
«t«
(includes$137,162,469.55 U. §. Deposits) Xj
To
31, 1945
of close of business December
as
♦;
\ty, •/
n
1
,
State and
'
1 j~,
V,
,
*-
1
',yK}
901,800.00 11
'
a'-'I.
j
■
.
,
'
,■
'
^
Municipal Bonds....................
471,656.98
120,000.00
799,505.19
FederalReserve Bank of New:York Stock.
( Other Securities.
Time Loans Secured
893,330.00
by Collateral
Overdrafts-Secured $5,382.42~Unsecured $31.58.•
:
5,414.00
292,382.10
75,000.00
139,367.10
Real Estate Bonds and
Mortgages,
Real Estate (Branch Office). ,
Accrued Interest and Other Resources
$44,211,801.64
Total
to
Meet Indebtedness.
$882.047,903.71
LIABILITIES
.
$40,011,016.21
This Leaves.
XrXXXK-XX-. -v-.i
Due
Depositors.
.
Dividend No. 165
Capital, $15,000,000.00$ Surplus and^Undivided Profits, $25,011,016,21
HENRY A. PATTEN
DUNHAM B. SHERER
•
,
"
ing
&
■
RALPH
'Chairman-
; C WALTER NICHOLS
(
Chairman, Nichols Engineer¬
Research Corporation
■
1
4
JOHN H. PHIPPS
In Government Service
A
Chairman,tngeffQll.-R.anJ.
Company
,
Chairman,
ance
EDMUND Q. TROWBRIDGE
•;-/"/
>
Home Life Insur¬
BRUNSON S. McCUTCHEN
;
Consulting Engineer
1
_■
'
Member Federal
■>»;
Deposit Insurance Corporation.
"
DIRECTORS
russell V. cruikshank
john a. larkin
o'donnell iselin
de coursey fales
E. townsend irvin
,
Exchange Safe Deposit Company operates vaults in 56 of
branches conveniently located throughout the City of New York.
United States War
bernon s. prentice
franklin b. lord
--
The Corn
.the 74
stanley A. sweet
£££•■ Inc. i/ /■
v-M-1-/.'
OF.
ARTHUR J. MORRIS, President
} E. MYRON BULL
SIDNEY A. KIRKMAN
Company
BOARD
EDMUND P. ROGERS, Chairman ojthe Board
McWfLLIAM ^ '
JOHN R.
President, A. H. Bull & Co-
ETHELBERT IDE LOW
75,244,768.56
-
$44,211,804.64
Executive Vice President
;.\r. •'
• —-
1,244, f68.d6
Company
; HERBERT J. STURSBERG
Treasurefi Livingston fTortted.
i
Mills, Inc. *
•
-l
.
GEORGE DOURLEDAY
•;
v
Undivided Profits,
WILLIAM G; HOLLOWAY
1
' 7
PETERS, JR.
President
30,000.00
315,195.17
.
Chairman, W.R, Grace
:
,
$38,621,840.91
**. **;.
Payable January 2nd, 1946*
Expenses and Contingencies
Capital.........;....,.. (..... $2,000,000.00
Surplus.,....
2,000,000.00
i
Vice President
Drysdale & Company-
.............. . . .. . . ..,.
Reserved for Taxes,
BOARD OF DIRECTORS
ROBERT A. DRYSDALE
>
Si
YORK
Savings Bonds and Stamps are on sale at all offices.
■
.
russell E. burke
charles
Charles s. McVeigh
charles scribner
henry W. bull
s. brown
Member Federal Reserve System and Federal
SPECIALIZING
charles j. nourse
stephen c. clark
IN
PERSONAL
Walter n. Stillman
Deposit Insurance Corporation
TRUSTS
&
BANKING
f
cics.
T h
S
e
u
not
we
iind tnat tne
universe,' the
world, matter, energy, are all gov¬
erned by Jaw.
Step by step, each
new scientific law, wnen discov¬
announced to-the scien¬
is
world,; and in each instance
tific
is found that the new law
it
was
created by man, only
discov¬
ered.
But, when discovered, it is
found to be perfect, to be certain,
to be without exception and uni¬
versal in its application.: ,
not
Not
.
satisfied merely to
been
not
In the
man-made law.
so
of human relations man has
field
dis¬
assumed the
has
but
law
cover
of
p r e ma c y
(Continued from first page)
ered.
resist
opinion
de<5ree
and
that its
conviction
ihe
this case
in
on
velopment of our institutions rests
acceptance of the results of
the past, and their use as lights to
guide • OUr^Stieps ^ in The ' future.
Teach the lesson that settled prin¬
on our
be overthrown at any
confusion and turmoil
ultimately result.
In the
ciples
may
time,
and
must
haltingly at best.
ties of faction.
to'
J
seems
to me that
lesson
apply
natural
to
of
*
even
law;
bevsupteme, the law must be
to
v
failed
have
certain; much; less the: second; to
usable, the law must be un¬
be
derstood.
-
.
the law
stood, it cannot be used, Jf there
are no standards, they cannot be
,
:
time
Perhaps, the
upheld.
to draw * some lessons
come
has
from
the laws of nature.
that in his time
Rousseau said
had
who
man,
free,
born
been
^everywhere was in chainsi ; Today
most men, are free, but as we
look
human
must
the
about
we
scene
in
universe of. order,- is every¬
a
' "
...
^;
FourH phases
of this confusion
are
of. particular interest to us,
and I propose to refer to them
briefly. They are: (1) uncertainty
in judicial decisions; (2) adminis¬
trative procedure; (3) industrial
warfare; and (4) international or¬
^
them.
If
the
opinions of those who,
from: time to time,: may make up
its membership, it will inevitably
become a theatre of political strife,
personal
and its action will be without co¬
The
fundamental conception of a ju¬
dicial body is that of one hedged
about by precedents which are
binding on the court without re¬
gard
to the personality of 1 its
herence
consistency.
or
according to the
of
generally; or of that
portion of mankind who may be
associated together in one govern¬
ment, or who may be governed by
the same principles or morals.
.;. ;,"Law
is a system of rules de¬
enlarged view of
the relation of persons and things
as they practically exist,
>
"Justice
of law.
Uncertainty in Judicial Law
I participated In a
ceremony
commemorating
the
100th anniversary of the birth of
Chief Justice Edward Douglass
White.
In preparation for that
event I made som e study of his
life and judicial career.
I found
that in his 27 years on, the Su¬
preme Court of the United States
he wrpte 700 majority opinions,
10 concurring opinions, and only
Recently
progressive,
a
was a
called him
some
conservative, but
called him
a
his record he
on
great Judge who recognized
that the first
principle in the
of law
premacy
su¬
certainty; He
was
it
found
necessary: to dissent in
less than 5 % of his opinions. Law¬
could advise their clients as
applicable rules of law with
reasonable certainty.
Today we do not find the law
in this happy situation.
In 1943
in
the
Supreme Court of the
yer s
to
•
,
States
United
against
44%
dissents
of
the
opinions
the court; in 1944 there
senting
opinions
cases; and
or
there
63%
of
dis¬
were
the
of
during the last term of
court there
dissents
in
filed
were
were
almost
as
many
qualified concurrences
majority opinions.
Is. the applicable rule of law
really so difficult to ascertain? Or
as
were
•
is
each
Judge' seeking to extract
the
from
atmosphere about him,
from his personal sense of jus¬
tice—social or otherwise—his own
or
notion of equity, which he writes
inio the law?
White
*
the
to
took
the
position J that
Supreme Court
be
one
was
intended
stabilizing influence and
made for certainty and
a
that
uniformity in the law.. In his first
opinion
on
question,
a
his
great
constitutional
dissent in
the
Pol¬
lock case, he said:
--My inability to
court
in
the
agree with
the
conclusions which
it
has iust expressed causes me much
Great as is my respect for
view by it announced, I can¬
regret.
any
be¬
be bereft of value and become
often resolves
men
an.
chaotic
is/a
of
mass
principles.
"Lgw is the same mass; of prin¬
ciples classified; reduced to or¬
der, and put in the shape of rules
agreed upon by an ascertained
-
,
'it "Justice is the virgin gold from
the. mines that has its intrinsic
to
we
antidote
npt a struggle
how
on
I refer to my
this
be done,
this sub¬
may
article
in
on
create
courts, .localized
country
where
.
available
of
by
for
the executive
ment.
Willi
would
be
such
of
an
handed administration
before trained and
of
currently stand for things
are equally opposed to that
"government under law" which
the civilized world has sought for
which
we
even-
more
the law
impartial
time
some
this
than 200 years and
achieved.
sionally
achieved it here
mem¬
bers of the judicial establishment.
At
Anarchy,
v.
They
establish¬
changes
assured
Dictatorship
though delusively opposite and
conveniently simple
labels, i are
extremes
and
not
alternatives.
the prompt hearing
multitude
of
cases
now
the
tried
has occa¬
We have
this continent, "
on
and the issue is whether we shall
nation, will
retain it
surely stand, without knowing it,
at a crossroads which point one
way to freedom and order, and the
it frittered
see
or
bit by bit,
as
bondage and chaos.
Many people ;cite good reasons
saying that the day of choice
for
in
is at hand. If
'
1
■
varying value according
a
with
value
its
ascertained
Lawyers appeared on the scene
historic times in response to a
public need for some group who
point out that might was
we pass blindly on,
find ourselves so used to
bargaining rather than adjudica¬
would
(Continued on page 42)
J,
.
to
V-/■'
and
fixed, with the stamp of the gov¬
ernment
insure
it
upon
denote
to
and
its current value.
"The act of molding justice into
a
system of rules detracts from its
a
instrument to the
rights and liberties of the people,-
sin approximation of justice; :
"Nevertheless,
mankind have
generally thought it better
to
have their rights determined by
such a system of rules than by
the sense of justice of any man or
of
set
have
whose
men
been
to
it
duty
STATEMENT
Whitg ^9greed
"the
of
revision
with Kent thi^
decision Very
a
itself into
mere
a
question of expediency.*' Trained
in "the civil law where the code
is an instrument of stability, he
recognized that the only substi¬
tute for chaos in the common tew
was
the doctrine of stare decisis
the willingness
of the court
precedent. One has but
the state of the law
today to know that he was right,
and
11
re sources
-
J
Cash and Due from Banks
State and
Municipal Securities
Other Securities
tipn of its abstract justice breaks
down the safeguards under which
principles of justice have been
erected into a system of law; and
thereby annihilates law.,
JtA sense of Justice; of course!
must have an important influence
With every well organized mind
in the adjudication of cases.
"Its proper function is to super¬
exactitude,
Hence, 'when men talk of justice
they mean their conception or no¬
tion of justice. If all -men had the
same background, the same train¬
ing, the same experience, the; same
motives,
the
same
aspirations,
then iftaybe they would have the
same notion
of justice.
Judges
Loans
A',*
♦
think of their function as the ad¬
ministration^
lawyer, who operates in the same
field on the opposite side of the
bench, recognizes his function as
the practice of the law. I am in¬
clined to the view that we would
do well to stress the idea of law.
If constitutions and laws are
to have any meaning, their,inter*
pretation must: be uniform when
applied to the same facts and cir'cumstances,
irrespective of the
persons
before the court.
Provi¬
sions of the constitution and the
laW which
are
amendment
unchanged by any
cannot
mean
tone
thing today and the opposite to¬
morrow, if this is to be a govern¬
ment of laws and
I
not of men.
vigorously'dissent
;
from- any
when
in
must be
and Discounts
is
Liability
Other Resources
the
sworn
it
.
Capital
the
President
of
recommended
field
people wrote and in¬
law means what
and in¬
tended;
and
the
common
law
means
what
the
people of the
trade or community accepted and
tended;
statute
the legislative body wrote
practiced.
The function of the
Judge is to determine what that
law is, and to apply it to the facts
chaotic
action
»
612,805.69
J.
919,917.44
•
,.
;
$ 5,000,000.00
$ 19,750,515.38
2,250,515.38
.
.
'?
,
1,756,984.82
«
;
.
284,980.45
4:
v.
;' '
.
,
.
i
»
;
a
carried
$81,100,000.00 in the
at
C.BAIRD
I'ice President, Marsh &
347,885,667.03
above statement
EDWARD II. LETCH WORTH
Keni'fick, Cooke, Mitchell,
:
Bass & Lctch worth,
a
>
:
if
Presidpni and Chairman ofthe Board,
Central Reinsurance Corp.
SAMUEL S. CONOVER
(• Company of Buffalo
.
L.'FULLER
.
it.HUSTED
•
>
,
.
'
Sullivan & Cromwell v.;;
.
v
Honorary Chairman oj the Board•
v
'
;
Vice President and
,
s/''s
•
t
Secretary
<■
,
CLOUD WAMPLER
President,
V ',
Carrier
*?,
SEYMOUR 11. KNOX
:
-y
BARRAL S. TENNEY
FRANK A. KETCH AM
bureauc¬
Company j
Irving Settings Bank
Jackson, Nash, Brophy,
,J .
Bar ringer & Brooks;
"
Chairman, American Viscose
Corporation
The Pittston
HAMPDEN E. TENER
JOHN G.JACKSON
number
-yf;-:
EUSTACE S ELI CM AN
!
;
■
JOSEPH P. ROUTH
Chairman and President,
President, International Salt Co.
PAUL
Pice Chairman,
Executive Committee
Chairman, Executive Committee
CHARLES H. DIEFENDQRF
;
President, The Marine. Trust
EDWARD
'
BAYARD F. POPE
EDGAR II. BOLES
:
Buffalo
F. A.McKOWNE
JAMES1 G. BLAINE, President
the
bring about improve¬
administrative
598,175.27
tJ^SrWur Loan Dcpotit* of $75,001,745.80
public deposits and fur other purposes required by law,
McLennan, he,
Association
working for
to
,% V.
DIRECTORS
DAVID
imperatively needed in the
of
racy.
^
the
Bar
220,505.45
■
s
«w* ldrdged to /tccurp
and vtlter
velop a 'fourth branch' of the
Government for which there is no
political, social or economic the¬
what
.5
.
Securities
;j
judicial work, threatens to de¬
been
-
1
istrative tribunal, which performs
"administrative work -in addition
American
2,472,052,87
r
.
$3.70,276,322.95
plan for the separation of judicial
and prosecuting functions in ad¬
ministrative agencies.
He stated
that the present form of admin¬
ments
;irnm702
♦
V
Acceptances
on
Deposits
Law
has
means
,
.
Other 'Liabilities
the utmost
United J States
of years
f
no
Administrative
The
.
,
FREDERICK BEERS
to
•
*;
•
12,500,000.00
Liability
may
that is interpreted to permit the
Judge by legal "double-talk" to
read into the law his personal,
law
...
,
fair administration of the
1937
7,445,429.80
Provision for Taxes, Interest, etc..
sanction in the Constitution."
Constitutional
»
»
,
Surplus
professional
theory that the law means what¬
ever
the Judges, say it means, if
ories.
.
.
Undivided Profits
,
In
•
LIABILITIES
importance
not only for lawyers but for the
welfare of our country.
1
2.
525,000.00
♦
Acceptances
on
.
«
Wt:
finer statement of
the difference between, justice a^d;
law than that made by this oldtime Judge. Justice is an Ideal
and a goal for which we must
strive, but in the practical affairs
of
•' "
*
$370,276,322.95
pleasure; but to follow,
spirit!
;: I know of
a
■
♦
•.
Accrued Interest Receivable V
duty of every Judge and lawyer."
law is
•
harmony with the law
a
to whatever consequences
of life
>
668,913.33
,
'»
,
.
"y ;«
.
.
Customers*
the rule of law in its true
lead,
•
Mortgages
"To follow the dictates of justice
an
$ 90,766,659.99
.
Obligations . J ,149,538,262.51
Stock of Federal Reserve Bank
out and apply in their true spirit
the appropriate rules of law.
not
'
J:/1 :
.
,
j
■■■■■■
r.
judge them.
"Whoever undertakes to deter¬
mine a case. solely by his own no-
induce an earnest desire to search
is
»
.
United States Government
;
to follow
Justice
'
-
■
;
may
to look upon
;
•■■■'
v--.".-'v
■
.,
.
DECEMBER 31, 1945
CONDITION
OF
■
'
;
.
•
Chairman of the Board,
' 1;
J he Marine Trust Co, of Buffalo
•>.
•/: -yr *-
•
Corporation
•
; ;
HENRY J. WYATT
Executive Vice President,
:S
Crura & Forster
■
.y-v ;.
To'bring order into this
field,
are
several
courses
of
"
MAIN
needed.
First, there must be
a
fair ad¬
ministrative procedure act—either
the
pending McCarran-Sumners
Bill
or
its
equivalent.
Second,
Congress should specifically state
and limit the powers
which it has
delegated to administrative agen-»
128 Chambers Street
v y
OFFICE —120
BROADWAY
110 William Street
J) 143
.
Liberty Street
"
17
Battery Place
Member Federal
>
Warfare
Industrial
3.
away,
expediency and in¬
decision dictate,
other way to
the scales through; which it passes.
"Law* is the coin from the mint,
i
ments of the means to govern and
throughout the
they would be
.
\
against all power1the" point of depriving govern¬
protect.
system of minor Federal
a
spirit of legal isolation. The
for arbitrary power is
a
to
ject in the February, 1945, "Jour¬
nal."
Fourth,;
Congress
should
appreciate
worth in every case, but is subject
to
poli¬
legal administra¬
will neither recoga government
according to law. This is not said
that
tion,
nize nor
and
we may
common consent.
accustomed
so
draft
all
subordinate
regulations needed to
supplement act s
of
Congress,
Witnout' here
elaborating
my
agencies,
rules
but
this
judicial continuity, and let
on great constitu¬
questions this" court is to
depart from the settled conclu¬
sions of its predecessors, and to
determine them all according to
the mere opinion of - those who
temporarily fill its bench; and our
Constitution will, in my judgment,
to the supremacy
Some
upon
it be felt that
down
lief in
most dangerous
33 dissents.
*
.
.
common consent
mankind
vised
and
tics rather than
capacity of abstract adaptation in
each particular case, and in each
case the rules of law are usually
members. $ Break
ganization. Each one is sufficiently
complicated and important to be
the subject of many volumes, .but
I treat them briefly as they remte
1.
of its
permanency
"}\>
,
tional
confess that man, who; was^bprn
where id; confusion.
mission
conclusions,is to depend upon the
.
is not certain, it is
not true law.
If it is not under¬
If
accomplishment of its lofty
can only be, secured
by
the stabilityCof its teachings and
the
sanctity, w h i c h surrounds
the
j
,
those
or
tion.
re¬
views
the facts
or
notions
own
I
political parties and the animosi¬
It
his
suit
paraphrase: an opinion by a
Judge in my State written almost
a
100 years ago when the claims
of "justice" as against "law" were
urged upon him:
J "Justice is the dictate of right,
•
first
a
the subject of taxa¬
tion, and is therefore fraught with
danger to the court, to each, and
every citizen, and to the republic.
The conservation and orderly de¬
Congress
preting the Constitution, this court
exercises an august power. It sits
removed from the contentions of
We
but
Third, Congress shotild
capture its legislative power and,
through its own committees and
him; and he is
partisan if he
of anyone else.,
discharge of its function of inter¬
the
before
Judge
no
Law
g
case
changes either the law
painstaking effort and research in
the field of human law-making
has resulted
in products which
have been able to function only
-
of the
virtually annuls its previous de¬
cisions m regard to the powers of
function of creating law. The most
,
41
[THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
163
Volume
V:
'
Park Ave. at 46th Street
Deposit Insurance Corporation
V
Th
S
e
u
(Continued from page 41)»
not
the
equivalent
right
of
premacy
,
and
that trial by battle was the poor¬
est
method
conceivable
of
set¬
tling controversies. Law and evi¬
now become the ac¬
dence have
cepted substitute lor iorce in ail
personal and business- controver¬
sies
where
the
law
prescribes
rights and duties. In two fields,
however, force is still the usual
means of attempting to settle con¬
better
be settled
which could
troversies
with
and
infinitesimal
an
cent of the cost by negotiation,
conciliation, arbitration or adjudi¬
per
cation. I
international
mean
war¬
fare and industrial warfare.
lockout
of
conceive
cannot
or
of
a
strike. When I read
a
strikes every day, I feel a
new
of frustration for democracy.
sense
Whether it is labor
or
capital that
is to blame is not of any particular
importance. What is important-is
that we make the processes of
democracy work and that we find
method of settling these con¬
some
to
troversies
the
force and warfare. I
exclusion of
am in' favor
negotiation, conciliation, medi¬
ation, arbitration and adjudica¬
of
the
When
tion.
differences
and :■ man,
be¬
and
grpup, natioh ahd nation, are de¬
termined by agreement, or, that
failing, by
evidence
and
law
rather than by force, democracy
is functioning and the lie is given,
to those who say self-government
is an impractical and unworkable
theory.
One of the major causes of in¬
dustrial unrest is that the recipro¬
cal rights and responsibilities of
labor and management are in a
state of uncertainty. We hear a
great deal about the rights of the
employe and the rights of the em¬
ployer, but nothing from either
about their responsibilities to the
other. Yet employment is a rela¬
tionship into which is merged
both rights and duties. » These
should be clearly defined.
This need not be done by com¬
pulsory legislation. X think there
is. another remedy—selfrimposed
restraint, exercised by both sides.
tween
man
group
.
•
'
,
There is
ment to
there is
in the Old Testa¬
verse
a
the
effect
that
dictional
quarrels
where
restraint, the people
perish. Certainly it is true that the
no
democracies of the past have us¬
ually perished from want of
straint,.
re¬
real estate
transactions. In many communi¬
disagreement grow and flourish
and
closing
the
of
organizations,
each
with* mil¬
of members, were fighting
each other and, from lack of re¬
the
on
litigation resulted.
other
places local groups
were formed to discuss the com¬
the
not
last
to
was some
extreme
ways seems
to make it difficult to
a
demand publicly
Every lawyer knows that
his chances of compromising a law
suit are infinitely greater if he
can
meet With the attorney for
recede
from
made.
handj and the
American Bankers Association, on
the other, to. discuss trust and pro¬
between the lawyers
This is the method of democracy.
the processes of law.
It is self-restraint, without which
the
President
The
idea.
the
of
Los
Angeles Bar Association ap¬
pointed a committee to see what
the
bar
association
could
do
to
help bring/abqut the establish¬
ment of a voluntary code between
Manageftibrit and Labor in that
community.
bor' and the
I believe that if we can draw into
a
Labor Section hundreds of law¬
yers
from all parts of the country,
combine
will
who
experience,
edge,
their
knowl¬
judgment,
and
principles of Conduct will crystal¬
lize
used
which can be immediately
in the settlement and solu¬
tion of individual
problems which
arise in the field. Such
a
promote" its fair and just admini¬
stration,
encourage
uniformity
throughout the nation in the han¬
dling and settlement of such prob¬
lems, and thereby promote not
only justice and human welfare
but industrial peace and the su¬
premacy of law.
where all sorts of difficult
bined to crush labor by a concert¬
problems
ed
lockout from one end of the
country to -the other? The ques¬
tion answers itself. Probably nei¬
conference rooms, suggested that
the Secretary of Labor call a na¬
ther situation
labor
groups
to work out the
ever-increasing controversies be¬
tween Management and Labor.
Shortly thereafter, I tendered
which
the services of the American Bar
stroy itself, has made it absolutely
imperative that we find some sub¬
In
community
where
there, is an industrial problem I
think a conference group should
be
organized, large enough to
give representation to all elements
of labor and to all types of em¬
ployers, but small enough to per¬
every
mit personal contact and full op--
portunity for discussion of mutual
problems. Whatever the problems
are, the first step toward their so?
San
Confer¬
Francisco
were
ironed out in the
tional conference of industrial and
Association,
to
the
organizers of
the Labor - ManagementConfer¬
ence and to the Secretary of La¬
bor. I was courteously thanked
tween
lawyers,
bankers,
on
on
the one hand,
other, con¬
the
cerning the drawing of wills and
the administration of estates in
probate. There
were
similar juris-
better settled in
Which
civilization
can
,
of international disputes.
The American Bar Association
an
active
to
bring
better
part
in the
justice
and
settle their difficulties without in¬
thap. $8Q
and
order and
a slender
creation of the United Nations Or¬
body
even
that
of
great
their
a
of«lawyers who in
practice represent both Manage¬
•
Labor
ment
and
even
more
and
that
important,
group
the
gen¬
eral public.
Two weeks
of
with the rest
that the
Labor-Management
con¬
distressed, but not
sur¬
prised. Our lack of surprise
was
were
not that of the pessimist who had
expected little
a great step toward
this end, and the American Bar
Association, as one of the consult¬
ants at San Francisco, is.proud to
have had
ago,
the country, we read
national
ganization is
nothing from the
conference," but that of experi¬
enced lawyers, who, in a thousand
or
ment
of
a
part in the
an
commence¬
organization
which
is destined to have the profoundest effect upon our lives and upon
the life of
•
The
our country.
provision
made
•
the
Charter for the pacific settlement
of international disputes is heart¬
Mr. Small stated further that on
production lines, progress is
slower than was hoped fori
due to a variety of reasons includ¬
ing shortage of component parts,
work stoppages, uncertainty as to
wage-cost factors, and reluctance
to make long-term commitments.
In the case of many items of
still
durable goods—notably
consumer
passenger
refrigerators and
cars,
washing machines—manufacturers
have so far been able to do little
beyond producin g enough models
for their thousands of distributors
to
use
samples. No substantial
expected to be deliv¬
the public until the early
as
amounts
ered to
are
part of 1946. In contrast, construc¬
tion and farm machinery, some
equipment *- and
and some other
items that were* produced through
transportation
heavy* trucks,
the Y^ar
period are. now being pro¬
duced at above pre-war rates.
Sufficient tires to meet all ear
truck; manufacturers* rieed$
to be assured, particularly
since their immediate needs will
and
seem
anticipated,..
not be as great as was
the CPA report said.
The
textile
be
to
thread, indeed,, if the
about
shortage continues
most
the
difficult
problem, according, to the Small
report. This is due, he said, prin¬
major powers. The United: States cipally to the shortage of man¬
should take the lead to amend power—the cotton textile indus¬
try alone is short about 94,000
this provision.
workers from its 1942 peak of
settlement of disputes must await
the unanimous concurrence of all
Conclusion
504,000—arid the problem is inten¬
sified by. the great losses in pro¬
duction in
other parts
of the
world. It is also stated in the re¬
judicial law is uncertain, if
administrative procedure
is in
confusion, if industrial relations
have degenerated into] warfare,
and international affairs into the
If
port that the Civilian Production
Administration has had consider¬
able
anarchy of recurrent war, what is
to be done about it?
in its
success
outlets
of
men's
What
was
lar
the in¬
treatment to outfitting the return¬
cipient warfare between the col¬
onies which followed their suc¬
cessful
War
for Independence?
agreed-upon
They
that
formula
ing veterans.
successful
a
and
Mgr. for Clark & Co.
the honest might repair. In
of law it is our respon¬
Co., 40 Wall Street,
City, announce that
Paul H. Zizelman, Jr., recently re¬
turned from active service with
the U. S. Army, is now manager
Clark
sibility ; to raise ] those standards,
see that they are just, to.see
that they are certain, to. see that
understood.
are
''
'
task..
-
Branch
Merrill Lynch Co. I;
.
appointed
of Merrill Lynch, Pierce,
manager
has
been
&
Beane's
office
at
offices at 609
nue.
Ma¬
1 \y$l.
York City,
v'.2•<!
.•
'
■
,v-
Angeles
H.
South Grand Ave¬
Officers
.
are
Francis
H.
President and Treasurer;
George H.~ Zeutzius, Vice-Pres¬
ident,
and
Florence L.
Nagel,
Secretary. / Mr. Breen was for¬
merly, in business in Los Angeles
as an individual dealer.,,
y
Breen,
remaining with them until coming
to Jacksonville 12 years ago and
joining the present firm.
-
being formed with
Breen & Co. is
Corps in World War I, Mr.
Carrere became associated with E.
dispute pledges itself to seek
-
1
LOS ANGELES, CALIF.—F.
;;
rine
A; Pierce & Co., New
]v
4
Formed in Los
116
West Forsyth Street, .to succeed
Roland D. Baldwin who resigned.
Fenner
trading department.
In
with Hoit, Rose &
F. H. Breen & Co. Is
JACKSONVILLE, FLA.—Henry
M. ] Carrere
.
the past he was
Troster.
:
Carrere to Manage
for
their
of
,
be about the
us
&
York
New
to
;Let
.
,
Paul Zizelman Trading
guaranteed the su¬
the fields
they
topcoats;
shirts and shorts to give particu¬
attention
and
preferential
done about the con¬
fusion, the frustration, and
appeal ta retail
suits,
,
ening to those who believe in the
supremacy of law. Each party to a
a so¬
to ob¬
for veterans
building materials.
:
Following service with the
.;
in
scarce
the
International
Woyld security hang bn
morality.
month. This will be
builders
tain
of
political
per
accomplished
under
Priorities
Regulation 33 by giving HH pri¬
orities ratings to assist veterans
law into international affairs. The
tervention,
.
.
de¬
now
stitute for force in the settlement
taken
could
We
and
If the rec¬
tion in clothing prices, CPA has
been working closely with OPA to
plied with, sterner measures may
develop a- large-scale low cost
be employed, including the use of
clothing program.
.
•
armed forces.
v
(7). Most. recent] reconversion
Under Article 43 all members
step by the Civilians Production
agree to make available to the Se¬
Administration -has been to imple¬
curity
Council
certain
armed
ment^^he President's^-moderate--.
forces and facilities. to maintain
cost housing program with veter¬
international peace and security.
ans' preference in occupancy. The
Such a use of force to uphold law
program is designed to produce
is a proper police function, and
during 1946 between 400.000 and
to that end we might tender the
500,000 dwelling units costing less
use
of any modern weapons we
than $10,000 or renting for less
way.
movement
they
ference had. adjourned in failure.
local controversies be¬
could be
peaceful
shortages,
particularly
the returning veteran,
and at the same time curb infla¬
The develop¬
ment of the atomic bomb, with premacy of law. They raised stand¬
ards to which the wise, the good
some
has
felt
lawyer's notebook. A few years
in all parts of the country
were
War between nations, too, is a
resort to force to settle issues
agement
there
ago
International Organization
4.
but was told that Labor and Man¬
lution is free discussion.
A pattern can be taken from the
be deemed appropriate.
essential ex¬
ommended settlement is not com¬
section
could study labor law as a science,
minimum
our
affecting
,
ence,
velopment and prosperity of this
country came about through the
cooperative effor,t of capital and
labor, and not from their strife. %
mee't
port obligations.
a drive to relieve acute
,
the States. The only
recognized in our political
the
develop,
t
ommended on such terms as may
fourths
from
ever
Court
undue strain
an
materials in short supply,
also to make sure that we
our
and
analyze or ex¬ veto
tnere is no lasting hope for our
press any opinion on the various system is that of the executive in
form of government.
bills pending in Congress dealing legislative matters, and that may
Last February in speeches in with one
or another phase of this
be overruled by a two-thirds vote
Detroit and
Los Angeles,
both problem. There is one obvious of the
Congress.
great industrial centers, I made; step that we as a profession may
The- veto confronts the world
the suggestion that local confer-,
take, and I recommend it to you. withthe choice; of vunariimityfbr
ence groups be organized to work That is the establishment of a Sec¬
frustration. Unanimity: purchased
out codes of ethics for both em- tion of Labor Law where
lawyers at such a
pric<? can ; prdduee only
ployer and employe. The speeches representing both Labor and Cap¬
the lowest common denominator
received .a good deal of local pub¬ ital can meet
and, around the ta¬ in international law and political
licity ih (each place and I had let¬ ble, commence the solution of
morality. Sitting on the brink of
ters not only from lawyers, but these
terrible problems.
the atomic age, the world needs,
'also directly from some labor peoI have the utmost faith in the
not the lowest, but the highest,
•ple,» manifesting their interest in fairness of the average lawyer and
concept of international law and
ment cooperation. In June Sena¬
tor. Vandenberg,
on
returning
will
on
of Justice,
(6) In
while non-legal disputes will be
clothing
investigated and settlement rec¬
International
I do not intend to
*
] (Continued from page 8)
.
that there is not
.
Would the publie stand idly by if
all employers in the nation com¬
but it is certainly time for both
sides to realize that the great de¬
Full Production
security, the
Security Council, as the represen¬
tative of the community of na¬
tions, intervenes. Legal disputes
will normally be referred to the
ternational peace and
problems, and another group the other side out of the presence
and the real¬ of his client, where the two, whose
possess* however formidable, in¬
tors to determine the real estate business it is to know not only
cluding the atomic bomb.
disputes. Agreements were nego¬ rights but responsibilities and who
My praise of the United Nations
tiated, " promulgated,
and
have know the method of compromise
Organization is tempered by the
been generally accepted through¬ and conciliation, can concede some
knowledge that its high destiny to
out the country. The rights of the merit to the opposition without
.maintain international order may
various parties are now under¬ losing face. It was with this in
be frustrated by the veto power
stood, and, being understood, are mind that I tendered the services retained
by each of the five per¬
of the American Bar Association
respected.
manent members of the Security
Why would not such a method to the conference.
Council. In the advancing devel¬
be feasible in labor relations? Out
Since the efforts of Labor and
opment of law administration the
of. such conferences could come Management to solve their own
old requirement for a unanimous
standards of conduct and codes of problems have resulted only in in¬
jury verdict is giving way to a
ethics; The code of ethics of the creased industrial warfare, it is*
two-thirds or three-fourths vote
lawyers and that of the doctors obviously high time for the law¬
in civil cases. While unanimity is
speak largely of their responsi¬ yers - to step in and see that set¬ still
required in capital criminal
bilities. When the employer and tled principles of law are applied
cases at the trial level, appellate
the employe begin to think* and to this field. Just as international
decisions in both civil and crim¬
speak in terms of their responsi¬ warfare must be ended, So, too,
inal matters are made by majority
bilities to each other, the matter must industrial warfare, and in
vote. The Constitution itself may
of rights will take care of itself. lieu thereof we must substitute
be amended by vote of
threebate
persevere to
of
bitterness?
the
the
businessmen and
the
Something in human nature al¬
preferable to conflict. Con¬
then formed
between the American Bar Asso¬
the one
of
and made the demands.
ference groups were
on
conference, they were there,
the principal negotiators in
effort at conciliation and com¬
labor leaders who did the talking
passed from the loc^l to the
national stage it was determined
that negotiation and conciliation
versy
ciation,
lawyers present at
as
men
could be fixed. When the contro¬
Says Strikes Handicap
the parties themselves'fail to' set¬
tle a dispute-which threatens in¬
,
were
promise, but merely as technical
adjuncts of the accredited spokes?
and see if there
line of demarcation that
problems
mon
other,
or
If there
an
opposite
views
each other to derespective rights.
of
off at
In
Congress of Indus¬
trial Organizations issued a gen¬
eral statement on labor-manage¬
side
one
determined
men
square
able
of, the United States Chamber pf
Commerce and the presidents of
the 'American Federation of La¬
straint
when
rnand their
government could survive £ pi;0longed strike in which two great
lions
to
decided to fight it
out, each claiming its rights were
exclusive of the other's. Consider¬
ties the parties
The last of March the President
had
largest community in
the Country, have seen dissent and
the
let
Does anyone think our form.of
t
the smallest ham¬
instances from
the
between
lution, first, by negotiation, in¬
quiry, mediation, conciliation, ar¬
bitration or judicial settlement. If
Law
lawyers and the real estate people
o ver the drawing
of instruments
were
single
issue between labor and capital,
or between employe and employer, that can be settled j ustly by a
I
of
Thursday, January 3,1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
42
v_,
;
i
Volume
THE COMMERCIAL
Number 4452
163
& FINANCIAL CHRONICLE
of
matters
Wages, Profits and Prices
(Continued from first page) '
There
duced.
other
also various
are
charges against these
receipts, such as the cost of
materials, and supplies,) the
maintenance of plant, reserves
for depreciation and taxes,
•;
and. the
like,
Profit. is
It is what
residual share.
re¬
anything,: after
if
mains,
the
meeting all costs.
/
.;
.
>'
The Managerial Functions
The
exaggerated emphasis
that has been laid
the wage
by. legislation and
bargain,
;
on
otherwise, has obscured the
fact that the
managerial func¬
a wide range of
bargaining. Thus, to obtain
capital funds, in so far as
they are provided by banks
or
bond
purchasers, there
must be bargaining with the
prospective lenders. Similar¬
ly, bargaining is involved in
every purchase of materials,
supplies, or equipment, and
in every lease or purchase of
a site.
Finally, the sale of the
product is a continuous proc¬
ess of
bargaining with dealers
tion involves
or consumers.
All of these
in
a
bargains occur
In fact, the
free market.
essence
of
bargaining is that
it must be free. Neither party
must be
sion
or
subjected to compul¬
coercion, otherwise
the transaction
duress,
is
employment,
invite
to
some
be
other
group to enter into negotia¬
subsequent plant either major labor organiza¬ tions with a view to arriving
election. Because of this situ¬ tion. The monopoly conferred at
mutually agreeable terms
on a particular
labor group
ation, so contrary to the con¬
just as the workers are free
cepts of free bargaining, the by; the Wagner Act Is a tra¬ to approach some other em¬
kind of collective wage bar¬ vesty oh bargaining...
:
'
ployer? ; The ships and rail¬
gaining 5 which must mow Fallacy of Labor
roads are jammed with re¬
Exploitation
occur has become recognized
turning veterans. Why should
Aside from the opposition
as a one-way street.
Wages of labor'
hot an employer who finds
leaders, who would
always go; up,: never down.
himself deadlocked in a mis¬
see in such a plan the
grave
Large increases are demanded
called collective bargain with
for trading purposes and the jeopardy of their jobs and in¬ some
monopolistic union
fluence, such resistance las
employer is always glad to
might be offered to this pro¬ group be free to invite a group
settle on some compromise
of veterans to consider jobs
posal would hark back to
basis where he does not have
with him?
Karl: Marx and; early 19th
to meet the full demand.;- ; I
This is not an unreasonable
Century factory conditions. It
Obviously, it is utterly er¬ would be
position to take with respect
charged that the
roneous to call such proceed¬
In demanding a
door would thus be opened to toMabor.
ings by the name of bargain¬ an
exploitation of labor certain scale of wages, the
ing. A better definition of
through incessant playing of clear implication is that the
what the Wagner Act miscalls
one
group of workers against going market value of the
"collective bargaining" would
another. We concede that the labor service is being quoted.
be "the compulsory accept¬
An assumption of this sort is
history of the factory system,
ance of the wage demands of
especially in its earlier days, always made in any other
a particular labor
group hav^ reveals instances of worker kind of bargaining. If a dealer
ing a monopoly, under Gov¬
offers an article at $1.00, he
exploitation. But the experi¬
ernment sanction, of the priv¬
ence of a
century ago is no necessarily operates on the
ilege of making such de¬
guide for our future. In the theory that there are custom¬
mands."
ers
ready to pay that price.
period which lies ahead of
no
this country, there would be If
buyers appear, the
Restore Genuine Collective
little opportunity for resump¬ smart thing is to reduce the
Bargaining!
tion of such practices, even if price, if only to move the
As the first step toward
stock and cut the loss. If one
management as a whole were
clearing the air and moving
disposed to undertake them, employer—i.e., customer for
first
one
in
a
•
toward
a
basis of
more
real¬
istic
adjustment, there should
be acceptance of the principle
of genuine collective bargain¬
ing. The essence of this prin¬
ciple is freedom on both sides
conducted to deal with
more
thali
one
condition party. The term "collective
which, in law, invalidates the bargaining"
is, of course,
■, commitment.
Thus, manage¬ much older than the Wagner
ment: is mot legally obliged to Act. It was devised
long ago
deal with a specified land¬ to
describe
the
procedure
owner
in negotiating for ,a
whereby agreements as to
factory site, or with a particu¬ wages, hours, and conditions
lar bank or group of investors of work were made between
in obtaining capital funds. an
employer and a group of
Nor
is
management under workers, rather than between
any legal compulsion to sell the employer and the several
its product to a particular workers
separately. Despite
group of consumers. Through¬ wage agreements, the work¬
out the entire range of the ers have
always been free to
dealing and trading and nego¬ leave one employer at any
tiating involved in the man¬ time and seek work with an¬
agement of production, there other. Denial of this privilege,
is no .suggestion of legal di¬ even for the life of a
wage
rection or compulsion, except
contract, would mean peon¬
under
free
a
sidered
to be
the
capital available for them
to|use.^Baeh3was the; situation
in the early history of the fac¬
tory system. It is no longer
the case here. Immigration is
severely restricted, and the
number of persons
in the
working-age groups 19-65 is
likely to decrease with every
decade for
some
time to
come.
Compared with the nation's
capacity to provide capital,
there is every reason to antic¬
ipate that in future labor ser¬
vice, rather than capial, will
become the
scarce
factor
in
bound for the
Furthermore the exnloita J
supplier of mate¬ period of the wage agree¬
urtnermore,, tne exploita
tion of labor that would be
rials or with a monopolistic
ment, provided he remains
consumer of his product. Such
solvent. The difficulty has al¬ alleged to occur through the
constant playing of one set
instances are so rare as to be
ways been over the renewal
of workers against * another
of little over-all. effect upon of the
agreement. Until the
would mean spasmodic interthe freedom of the bargaining
Wagner Act tied the employ*
process.
:
er's hands so completely, he
was at least reasonably free
Wage Bargaining Not Fre£
workers were inducted. The
.
at
;v;; The striking exception to
such
times
to
enter
into
negotiations with other groups
-this freedom is the wage bar¬
in the event of an impasse in
gain; Federal legislation no>v his
bargaining with a particu¬
confers • a monopoly of batlar group.
V ^|
gaining upon the particular
organized
have
group which may
outvoted other groups
.
for this
privilege in a given
plant. The law requires the
employer to restrict his wage
dealings and discussion to the
r
group which has acquired the
bargaining monopoly and for¬
bids him to enter into similar
group
When losses occur,
they must
be borne by the owners of the
equity capital.
But it is
es¬
sential that the entrepreneur
shall be as free as any other
economic agent in the bar¬
gains by which his costs and
his receipts are determined.
Otherwise
the
risk
becomes
wholly incalculable.
If
profits in any industry
should be
would be
at
level
a
which
regarded by other
investors
as
excessive,
or
liberal, in relation to the
risks, additional capital in¬
even
vestment
into
will
be
the
attracted
industry until the
profits situation approaches
normal, having due regard for
,
the risk involved.
This is the
function of profits in a, free
enterprise economy, namely,
to stimulate investment and
to
If there
the
at
are
rates
no
investment
other takers
•
The
adjustment of wages
demanded, this by; reference; to^profits evi¬
should indicate that the
price dently involves
an
expropria¬
—i.e., the wage—is too high; tion, by labor, of a part of
But under present law, there the
profit, in so far as this
is
no
need to consider whether
can
be
estimated
used
and
not the
monopolistic labor as a basis for the wage set¬
group has overpriced its ser¬ tlement.
There is ia short¬
vices. i It has the full weight sighted shrewdness in the la¬
of Federal authority behind it bor tactics of
attacking, first
in demanding as much as can
certain large, well-established
be squeezed out of the unfor¬
companies in their demand to
tunate
employer who has secure large I wage increases
been
deprived, by Federal on*: the basis of the profits
law, of all freedom of bar¬ earned. -Such firms have lit¬
gaining for labor services.
tle need for new, outside
capi-^
or
Sain h? reference to the em
ployer>s books. The ostensible
purpose of such reference is
to verify : the
statement of
earnings as published in the
reports to stockholders, as re¬
vealed in ttfx returns, and as
agencies. The brief exposition
of elementary economic prin¬
tah
They are established; go-^
ing-; concerns. To lose this
particular battle Would not
bankrupt them, hencetheir
vulnerability to labor and po¬
litical pressures.
:
r
But wage levels so estab¬
lished
would pereo 1 ate
:
throughout
industry.
levels would have
no
These
relation
whatever to the prices or the
profits in the many far cor¬
ners of industry that would
be affected. The results would
be, first, greater unemploy¬
ment since many employers
urgent desire of every
ciples given at the outset of
employer is to maintain his
this discussion will show that simply could not comply with
such wage demands, and, sec¬
production at the maximum
the amount of profit earned
warranted by his sales, and
has no bearing whatever upon ond, a drying up of capital
to push his sales to , the ut¬
investment because the re¬
most
this
the wage
bargain. This bar¬ turns would no
longer be in
gain and all others, entered
proper relation to the risk
into by management must be
calculations. That such results
in his mind, of far greater im¬
concluded before it can be
portance than gains from
known whether or not there
wage chiseling, with its con¬
is to be a profit. Should there
different employers.
If any comitant high labor turnover be a deficit rather than a
and higher production costs.
employer cannot come : to
profit, we may * be .sure that
To 'state; the issue baldly,
terms with a CIO group, for
labor would resist
They, should be as free to deal
with different labor groups as
the workers are to deal with
strenuously
example, he should be free to why should not an employer,
negotiations with an haying failed to reach * an
are
anticipated
ferred from the
may
be in¬
vigorous sup¬
port of the labor groups
the
full
for
original version of the
employment bill, with its
virtual Government
guaran¬
proposal to permit re¬
covery of a sufficient propor- tee of whatever deficiency of
unless and until that AFL group, or with a group agreement with one group of tionof the wages already paid jobs and investment may ex(Continued on page 44)
may have ousted the of workers not identified with workers as to Wages or othOr to wipe it out.
In this labor
negotiations with
group,
-
now lost
freedom completely. It most. To these ends, steadi¬
should be restored to them. ness of employment would be,
^Employers: have >
among other things, the as¬
sumption of the risk of loss.
guide the direction of the
J flow
into
the*
fields where more capital is
evidently required. More jobs
are created thereby and more
goods are produced, thus en¬
hancing the general wellbeing. The performance of this
which is extremely doubtful. labor service—-will not pay function requires that there
The squeezing of wages to¬ the price — i.e., wage — de¬ be no extraneous interference
ward the subsistence level, so manded for certain labor ser¬ of the sort involved in the
much emphasized by Marx vices, the proper) move for current labor proposals! An
and his followers, is possible the labor group which has excess profits tax would be a
set its wage or price would similar sort of interference in
only where there is a vast
be to look for another faker?
ordinary peace times.
supply of labor in excess of
production. Under such cir¬ Profits Have no Bearing on
cumstances, the danger to be
Wage Bargain
guarded against is the ex¬
as noted below.
On the con¬
age or involuntary servitude.
Another aspect of the cur¬
trary, there is a complete On the other hand, the em¬ ploitation of capital and man¬
rent controversy is the pro¬
agement by labor, rather than
freedom save where a pro¬
ployer has always been con¬
posal to settle the wage barthe reverse.
ducer must deal with a mo¬
nopolistic
would be right.
The entre¬
preneurial function includes*
any
other
open
any
Thursday, January 3, 1946
the field of taxation, without
Wages, Profits aiui 1 Prices
ist.
(Continued from page 43)
The current wage de¬
mands
provide added
books.
Suppose he
were com¬
and
obsolescence
by superior force of the 'latter.
pelled,
The
illustrate
income
ac¬
want
to
see
cars, refrigera¬
subjecting it to further abuse tors, • washing.
machines, ra¬
in the field of
wages. «Actu¬ dios, vacuum
cleaners, etc.!
ally it makes no sense at all etc., come out at
in the latter field.
For
prices that
exam¬
continue the downward trend,.
bring them into a count is based upon entries of
ance that
extensive Govern¬
ple, the federal government, They do have a lot of
wage bargaining session. With both; sorts.: As to all items
money
as an
ment support will be needed, the best <; of
employer, has far great¬ to spend now for such
intentions, they which rest upon an exercise
things,
er
in both respects, if they are could not be made, to
ability to pay than any pri¬ but alL the talk about these
yield of judgment or discretion, it
vate employer, judged by re¬ billions
of extra;
granted.
....
anything of value to the dis¬ is eaSy to see that the door
purchasing
lative income receipts. Yet it
cussion without: a thorough would be opened to
power; being so "hot" as to
Should Labor Have ; a
vigorous
assur¬
law,
'}]*
v
examination and audit.
Monopoly?
1
The
concept
of
to
would be
a
collective
long
This
and
-
does not follow this
prolonged
between
process, even
the
controversy
representatives
to
the
much
extent
of
rule,
it
as
closed
the w;age rates at issue would
be those to prevail in future
ances
and its insistence
upon
maximum
*
.
•11
W
■
It is well understood, on tenance such a practice.
To
imposed by legislation, and
all sides, that wage rates es¬ expose the results of mana*
in some cases by
striking
workers who would not hesi¬ tablished now will become a gerial j udgment in, this in¬
floor rather than a
tate between
ceiling. stance to review by any groups
damage to an
The demand for a 30% wage bent .upon securing advan¬
employer's property and giv¬
increase in certain industries tage for Itself by enforcing a
ing way to another group of
would be i tanta¬
workers willing ! to do the is based on the assertion that revision,
the employer companies can mount to abrogation of man¬
work at less pay.be
bor, when applied in
afford to pay such rates in
principle | underlying
is perfectly clear. 1946,, while ; selling at 1942
The Department of
It is expressed iff the old prices.
adage: "Shoot or give up the Commerce, in an ill-advised
and in many
respects an un¬
gun." That is, workers should
scientific document, exhibited
always be free to work or not;
they should be free to cease figures to show that liberal
increases - could
be
work by concerted action with wage
a view
granted generally for .1946,
to urging or
forcing
without involving price ad¬
an
employer to grant their
vances.
The best that can be
demands.
But
they : should
said for this document is that
have no
standing whatever,
it is an installment on a debt.
in law or in
public opinion,
No one can now forecast with
in
preventing > others from
taking their jobs. The tradi¬ any accuracy what the busi¬
The
agerial responsibility.
technical equipment, is fully
as
much
used
as
picketing dates back
old
■
surplus-of-labor
days and the struggle of the
organized groups to maintain
their own position
regardless
of what
happened to the un¬
organized labor mass. Today
Mischief of
called
introduction
of
so-
"fact-finding boards*'
offers far, greater prospects
of
mischief than of constructive
results.
For example, what
kinds of facts
are
these boards
supposed to seek? And what
is to be done with them when
found, since the boards have
at a wage
below what is demanded
by
the striking group, it is a rea¬
sonably clear indication that
this group has
overpriced its
services.
Instead of recogniz¬
ing this fact, the law and the
courts
have
,
hold¬
are
<
of
technical ad¬
In the past
they have; been shared by
labor and the general public,
through better' wages and
lower; prices.
Strictly con?
strued, labor is now demand¬
ing that wages should absorb
these; technical gains within
the 1942 price level. Should
a precedent of this sort be es¬
tablished, it would follow that
the wages of a comparatively
small group of workers should
absorb all similar f u tur e
would
so that
become
below
which
gains,
1942
prices
minimum
&
future
prices
could not fall.
effort
The
the
absorb
to
whole fruit of technical ad¬
vance
can'
only lead to the
capital destruction of both the ad¬
it is of the labor itself
vance and the fruits thereof.
.
Those who
and supply
These fruits are garnered by
participate in an expansion of the market,
the gainful result only by re¬
and this depends on a steady
ceiving profits. No more sig¬ decline in the: price, of, the
the
tools
:* own
can
f
comment I has
ever
product
output increases.
expanding sales vol¬
ume, good wages can be paid.
and management than the re¬
It is, in fact, the only valid
ply reported to have been guarantee that any employer
given by the labor representa¬ can give of good wages, law
tives to the offer of Mr. Higor no low.
gins to sell them his New Or?
•
——
leans plan. In effect it was—
"We cannot afford to buy the RussellMclnnes Wi!h
plant, and if we could, we
.
would not know how to
run
as
an
'
..
.
I
'
;
•
'
•
I
i
.
.
.
1
I.
'
,
Wood, Hoffman, King
Wood, Hoffman, King & Daw¬
it."
By encroaching upon the
authority to issue enforcson," 48 Wall Street, New York,
able decisions. ; We have here profits, or even by placing municipal bond counsel, have an¬
another; illustration of the them in jeopardy through a nounced that Russell Mclnnes; has
ness situation will be
through¬
critical attack upon the re¬ become associated with them as a
great American weakness—
out 1946. None of the
;Mr.
wage
sults of the accounting for municipal bond attorney.
or vice—Which is to deal with
Mclnnes is a graduate of Brown
disputants has given any
profits, labor is moving in a University (Ph.B.), New York
one mistake
by setting up an¬
thought to 1947 or later years.
direction well designed to im¬ Lav/ School (LL.B.), and Colum¬
other facility.
If labor is
By setting up
driving toward a
pair ; its
own
productivity bia University (M. A. Public
genuine profit-sharing scheme enough boards and commis¬
Law) and is a member of the New
through discouraging the flow York Bar and the American Bar
this should be made
plain. It sions,^we '%s<eMki^t::'bf!vtKe' of
V.
'
*
capital upon which the pro¬ Association.
original error in the maze of
should
also
be
no
.
-
.
place the strikers
who
should go.
result of the
understood
future, if an ade¬
vision of still better tools de¬
error which the boards them¬
that the complement of
quate supply of competent
profitselves commit.
pends.
;
^
workers can be hired to re¬ sharing is loss-sharing, which
and for the
fruits
vance
been made upon the essential
With
teamwork of labor, capital,
Fact-Finding
Boards
The
a
nificant
.
strike
of
those
executives,
ness
connec¬
tion with the most advanced
.
the
of
main
of Services
;
useful life sched¬
.
tion
tics
ing up production drive them
to* it, and this includes labor
leaders; politicians, and busi¬
only the past,* somewhat; similar 'i view, V as income, of $26 tplliori a year.. : The wages-profits dispute
raises the issue of where the
transactions, ^ whereas witnessed, by t its ; disallow¬
Wages Determined by!Value
| A far more important prin¬
production periods.
It is ules for setting allowable de¬
highly disingenuous to argue preciation rates. 'Under any ciple for the determination
responsible bidder.! There is that
wages is that they should be
because an employees proper
conception of the re¬ in relation
always public clamor if only books show a certain
to the value of the
profit in sponsibility- of t management,
one bidder is
permitted to en¬ a
services rendered.
An em¬
determination of the proper
past period, he can there¬
ter. The Department of Jus¬
ployer
whose
plan t
is
fore afford to pay a specified rate of
depreciation must be
tice has fumed,:; more than
equipped with the best of
wage in a future period; This recognized as a managerial
once, at bids which suggested
tools and machinery can af¬
is
peculiarly true as we function. It is an accounting
collusion or an absence of real
ford to pay - good
"Wages be¬
emeige from the war period, device to assure the recovery
cause the
competition in bidding or one in which the
laboy services; de¬
severe terms
of the dollars spent for wast¬
voted to the operation of this
pricing. Yet we provide harsh of the excess
profits tax made ing or depreciable assets, and
penalties upon an employer
equipment is relatively valu¬
many employers; indifferent the only ' way by which it
who, having a certain amount
able to him. The point that is
to wage rates and
wage costs, could become a source of con¬
of work to be
done, should since
entirely overlooked in the de¬
they were shifted,. in cealed profits would be by
seek; to tiave it done ' under
mand that wages be adjusted
any event, to the taxpayers writing off more than 100%
on- the basis of
any sort of competition among
profits is that
through; the confiscatory ex¬ of the depreciable basis. No
those
able
and
the high
willing to cess
productivity of la¬
profits tax.
reputable auditor would coun¬
work. These penalties would
to
pure
They will get this way
only when the bullheaded tac¬
would reveal
or a
with the award to the lowest
the
indifferent
consumers
prices and values is
bunk.
now
by a
city-council
for a construction job or f a
batch of -supplies,- we' insist
upon
competitive,; bidding
school board
to
as
should to some of
under - competent
auditors, of labor and management. It
its important career men. Mr.
the and the cessation of
produc¬ is not uncommon now, * in
law is wholly at variance with
Truman would
promptly veto
tion meantime,: if a strike labor
pircles, to encounter the
what is demanded
a bill to
by the pub- were in
pay clerks and ste¬
progress pending set¬ charge that excessive depreci¬
lie, and even by the Depart¬
tlement, would be quite likely ation writeoffs are a method nographers $10,000} a year
ment of Justice, in other sorts
simply because ; the federal
to
alter the future profits of
concealing profits, t in the
of bargains. For
example, if
prospects. Even so, the books past the Treasury has held a government had an annual
a contract
is to be let
bargaining which is
make.,
even
paying
would
substantial wage
reductions in the event that
losses
rather " than"£
mean
profits
were
in prospect.
Obviously, the
finding boards
to pass, as a
tribunal,
,
•
Wages and Prices
wage fact¬
are
expected
kind of impartial said
the soundness
upon
a word must be
the interest of the
Finally,
of
long-suffering general public,
of, the
labor "demands
for A vital
aspect of the current
Accounts Are Result of .fc
wage increases that are re¬
wage
controversy
is
that
Judgment
lated to the profits record and
>•/•'>,
prices shall not be increased.
All accountants understand
prospects. If the profits have No one has raised the issue of
that the data contained in no
place in the wage contro¬
reducing prices, yet the his¬
business books of record
rep¬ versy, then the boards become tory of all our mass produc¬
•
-
,
<
-
-
-
Before becoming associated
.
with
Wood, Hoffman, King & Dawson
he was attorney in the Municipal
Department, of j Lehman
Brothers, New York investment
Bond1
bankers, and formerly lecturer in
public law at New York Univer^
sity and for Columbia University.
He
is
the
author; of. various
ar¬
,
-..
ticles
While
dealing
with
associated
this
with
subject
Lehman,
-
become increas¬
Brothers, Mr. Mclnnes specialized
in revenue bond financing and in
ingly softheaded on the sub¬
the development of revenue bond
ject, until today all degrees
resent in part exact and veri¬ a fifth wheel on the
of labor
wagon.,,
tion industries has been one law.
;r:
•.'
conspiracy and mo¬
fiable
transactions, and in ; A particularly inept note of
nopolistic practice are im¬
steadily lower prices and a
part the results of judgment. was introduced
mune.'
Roosevelt & Son Admits
by the Presi¬ constantly improved product.
The volume of sales illus¬ dent's
suggestion that an em¬ This is what some 140,000,000 ; I Roosevelt & Son, 30 Pine Street,
Account Books Reveal Only
trates the former, while the
ployer's
"ability
to. pay" people are waiting and hop¬ New York'City,, announce that
Past
valuation of
inventory and should have a bearing on the ing for. They know that great John K. Roosevelt has been ad¬
; Let us go back again to the other assets, and the
proper wages paid. This concept has technical
advance
has
oc¬ mitted to the firm as a general
question of the employer * ^cage-on:
ior
depreciation been sufficiently abused in curred during the war. They partner."';"4"
^"•'".;' -' ' ' •
- V■. ■
j
.,
.Volume
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4452
-
problems
of
international cur¬
rency stability and investment are
but prologue. The birth of these
two great international financial
45
control in
,
Signing at Washington by 28 Nations
II IP' Bretton Woods Agreements
Washington
27 of the Bretton
S il
signing in
on Dec.
by 28 of the 45 Nations which drafted
them in July 1944, Secretary of the Treasury Vinson issued a state¬
ment in which he pointed out that "four long years of intensive work
With the formal
Woods Monetary Agreement
into the laying the ground work for this day—the day
which the International Fund and Bank take their places in
mighty arsenal for peace, we^
;
f
have
of the
fully
are
Mexico, Peru, Cuba,
preparing.". He* added that Chile, the Dominican Reublic and
United Nations are so care-These were
is resolved as
States
United
the
institutions is not
the other Governments repre¬
sented, "to do all in its power to
these institutions an out¬
Twenty-eight of the 45
governments; which drafted the
bank
and
fund
agreements at
Iran.':::
Bretton
Woods, N. H.,*in 1944
example of theresults signed at the formal ceremonies.
A 29th government, Denmark,
that can be accomplished by. the
united action of those who want also participated in the ceremon¬
and are willing
to work* for a ies but is ~ not yet listedas a
make
standing
-
peaceful and prosperous world."'
The agreements provide for the
establishment" of the International
Bank for Reconstruction and De¬
member because the
time
the
at
ence
Danish Gov¬
in
actually
ernment;;; not
-
exist¬
of the Bretton
has 'not yet
contribution quota
Conference,
Woods
an
Expects 50% Gain in
task,
If these
mission
to
which
achieve
the
world
the
has
50%
and concerted cooperation of each
of the member countries and their
37
Fund, the Staterpepartment dis¬
closed.
The Jan. 1 press advices
added:
>
v
.■
Russia, the eligi-
In addition to
Henry Morgenthau' Jr., former
of the Treasury, who
headed, the Bretton Woods con¬
ference, said he " felt;"that this is
a
new
step' in International''; fi¬
nance
and can't help but bring
better; conditions in the world." ~
standing
example
that
be
can
Zealand, Venezuela, Liberia,
New
Nicaragua
Salvador;
Haiti,
Panama.
and
of
Willing to
are
all-important, officials said. ' Any
It
Governments having
by
65%
Of the fund quotas ($5,720,000,000)
and
bank
subscriptions
$5,915,
..
.
dollar
of
east
the
Dec.
advices
India
has
Woods
from
.
the
23 -that
New
approved
the
the
"Wall
Street
Bretton
ments
public,
of
is estimated.
Delhi
in,
the report
11
to
increase
Thomas L Hume Sons
Formed in
previous peacetime
1899.
'
the
to
The agreements
The
habilitation! programs of indus¬
tries,
commercial organizations,
utilities, State and local govern¬
ments," the Corporation points
.
to Francis I. duPont
at the
Vinson
-
Secretary
signed
Fred
the
for
M.
United
States; the Earl of Halifax, British
for
Great Britain;
Ambassador
Henri; Bonnet,
for
France, and Ambassador Wei Tao"
Ming, for China.
V
Other signatories were Belgium,
Bolivia, Brazil, Canada, Colombia,
Costa Rica, Ecuador, Egypt, Ethio¬
pia, Greece, Guatemala, Honduras,
Iceland,; India, Iraq, Luxembourg,
Netherlands, Norway,' Paraguay,
Philippine
Commonwealth,
Po¬
land, Union of South Africa, Uru¬
guay. and Jugoslavia. .1
■ • .;,,J
Ambassador,
,
It
stated
was
on
Jan.
1
by the
Associated Press that in the three
following
the
ceremonies
which brought the two big finan¬
days
cial organizations into formal
Woods
ton
State Department.,
Treasury
ex-
as
execute
we
and
breathe
into
the
these
the
documents
breath of. life
Monetary
International
International Bank
Fund and the
for .Reconstruction and
I We can be thankful • that. ;the
history, we are now writing is not
another chapter in
the almost
chronicle
a
of
and
war
mission of peace—
eronomic foundations of peace on
of genuine inters
; Four
work
,
'
**
years: of intensive
gone into laying the
long
have
groundwork for this day—the day
Fund and Bank take their places
members,
ficials
from
to
a s
h i
the
original
Denartment of¬
We
n
necessary
-
become
State
said.
W
f
g
likewise
t
o n;
quote
Associated
Press advices Jan.
in
we
the
of
which
mighty
the
the
International
arsenal for
United Nations,
peace
are
so
egrefuUv
preparing.;. But
these
past four year^ in which we have
wrestled. with
the
fundamental
ager,
to
:•
:.-'C
•
&
-
Company III
Board
L-41
Harris,
,
Upham
;v.v'
Corporation.
.
v
.^
'Jr
s
.-**
-v.'
"Price controls,
'
gree-:
Pacific Co. of Calif.
highly desirable
acted in some de¬
retard
production
of
in theory, have
to
needed materials.
Wm. Fuller Installs Wire
to
.
.
According to the Corporation:
,
•
con¬
factor! in ;thd opinion ofthe Dodge
Co.
with Gooch & Co. of Lin-,
,
.
,
orders,, which limited
war
-man¬
&
the
War- Production
Oct. 15 abolished all
• to
types needed in the
' effort, - the OPA price and
rent controls r.emain a retarding
Chicago.
theT armed
in
Lincoln, Neb;
on
struction
with
Co. ^of%
serving
was
for
was
coin.
•
'
become" associated
Cruttenden
and
countries
signed
has
art
materials,
and labor
efficiency," the statement says.
OMAHA, NEB.—John C. Stew¬
forces he
imon
a
V
justTip service to the ideals
peace—but action, concrete ac¬
tion, designed to establish the
1
of
deliveres
White
Cruttenden &
not
*
prices,
Wages,; work stoppages
of
istencqfon Dec, 28, six additional
documents
L. Beckwith, USNR. has returned
from active duty and has resumed
his position with the. firm,
Prior
national cooperation.
Exchange,
that Lt. Comdr. Charles
John C. Stewart With
.
endless-
announces
Develop¬
ment."
strife.'Ours is
of the New York Stock
luctantly
granted
:.;
OPA
some
has
re¬
increases
ILL.—William A.
Fuller & Co., 209 South LaSalle
ceiling prices to oerrrt manu¬
facturers to offer the increased
Street,
to recruit ade¬
The process for
securing anprovals for increases
'is frequently dr^wn out, and the
continued effectiveness;:of price
in
CHICAGO,
Stock
members
Exchange,
stallation of
a
of
the
Chicago
the in¬
wages
direct private wire
Hope Street, Los Angeles.
necessary
quate manpower.
announce
V> the Pacific Co. of California; 623
South
D.1 C.
,,
V.-P,
BOSTON, MASS.—W. Richmond
been elected a vice-
president of Perrin, West & Winslow, 24 Federal Street, i members
of the Boston Stock Exchange. Mr.
Arnold
became
the firm in
with
associated
1938 when it
was
or-
ganized, leaving in 1942 to accept
a commission in the United States
Naval
Reserve.
He
the
rejoined
firm in 1945.
.
Sachs Admit
G, Levy & W. Greely
Gustave L. Levy and Walter J.
Creely, who have been associated
with Goldman, Sachs & Co., mem¬
bers of the
New York Stock Ex¬
change for many years, have been
admitted" as general partners in
the firm. Mr. Levy will, be in the
firm's New York office, 30 Pine
lump sum bids, preferring to take
Street. Mr. Creely will be resident
work on a cost-plus basis. Lump
the St. Louis office,
sum bids must necessarily include {partner ill
•
Boatmen's Bank building! margins of safety to protect the
contractor against uncertainties on
Street. New York City, members
Agreements:
History is being written today
•
Washington,
Arnold has
! Goldman,
Chas. Oeckwith Returns
in
of Ferrin, West Co.
,
,
proprietorship
established
firm, which holds
new
WlR-Arnoid
into many billions of dol¬
lars, announced expansion and re¬
bank is $3,175,000,000.
sighed in a 26-minute ceremony
Hume
membership in ' the Washington
Stock Exchange, will be located at
917 T5th Street, N. W., and will
Baghdad, Iraq, advices Dec. 24
This
out.
.
•
establish a $9,CReuter), reported that the Iraq
total of $5,925,000,000 represents
; At the same time it declares
109,600,000 International Bank to
Senate on Dec! 24 ratified the
make loans to help rebuildI and nearly one-third of the aggregate Brecton Woods
Monetary Agree¬ three kinds of retarding factors
rehabilitate
war-torn
countries capital of the two accounts.
ment The Iraq
These are I
Chamber of De¬ exist to delay revival.
Great Britain's aggregate will
and $8,800,000,000 Fund to keep
puties ratified the pact on Dec. 22, increased costs arid; current con¬ 1
be $2,600,000,000. Russia's, will be
world currencies stabilized..
; ;f
about; market conditions,
It was reported in United Press fusion
:
7 hey still, can be signed until $2,400,000,000, when and if she
advices from Paris on Dec. 27 that continuing government controls so
comes in.
next Monday [Dec. 31] by the
the Monetary Stabilization Agree¬ far as prices and rents are con¬
The next step will be the ap¬
other countries participating in
ment and a $550,000,000 loan by cerned, and the growing pains of
the United Nations 1944 Monetary pointment by signatory countries
the
Am e r i c an Export-Import an industry called upon to expand
■CConference
at Bretton'. Woodsy of a Governor for the fund and a
Bank Were approved unanimously its operations very suddenly.
N. II. After that date, a nation Governor for the bank.
"Many prospective investors re¬
The United States will call the by the French Constituent As¬
!
wishing to participate will have
ceive a
shock when presented
sembly early that day.
to be approved by the Fund or first meetings of the two boards
with current estimates.
For good I
of directors under the rule giving
Bank boards.
reason these are frequently higher
Appointment of boards of gov¬ this authority to the power put?
than published cost index num¬
tingup :the;mbst; capital.
ernors by each signatory country
bers, which range fori different
The following is the statement
is the next step in setting the two
types of structures from 25 to 35%
issued on Dec. 27 by«Secretary
institutions on a going basis.
over averages for 1939. Some con¬
V Tne
two : agreements > were Vinson at the time of the formal
to make,
signing in Washington of the Bret¬ | Francis L:duPont & Co., 1 Wall tractors are,, refusing
;
L.
Thomas
the
to
successor
mand ^ in the form of estimated specialize in
shortages, contemplated and .securities!
planned construction projects run¬
_
C. —An¬
tion of Thomas L. Hume Sons, Inc.
"There is plenty of factual evi¬
dence of
vast accumulated de¬
"
D.
nouncement is made of the forma¬
require construction, over an
period, in larger amounts
ning
Washington
WASHINGTON,
-
pi;fhe EgyptiafiPmdiahieht
F.
Jack
general partners in the firm.
construc¬
One- and two-fam¬
years.
Agree¬
by both
mem¬
USNR,
Glenn, Lieutenant,
USNR, have been released from
active duty and have resumed as
and
states.
in. any '
W.,
.Commander
Lieutenant
extended
than
Street, N.
change and other Exchanges, an¬
that
Malon
C.
Courts,
\ Potential demand is generally
so large that it is likely
the
Marietta
nounce
considered
eligibles cah'decide to 000,006). Those "signing today have by almost unanimous votes; The
participate
the bank and fund total quotas well in excess of the Egyptian government will sign
at any future date if its applica¬ 65%.
the agreement at Washington on
Forty-four nations have, been Dec. 27.
tion is accepted by the bank and
-the fund governing boards. These assigned quotas. No shares have
Announcement was made by the
agencies have not yet been set up. yet been fitted for Denmark.
Government of Paraguay on Dec,
In
Associated
Press
advices
The fiind quota of the United
22 that it had approved the Bret¬
Dec. 27 from Washington, it was States, first country to ratify, is
ton Woods Monetary Agreements.
$2,750,000,000, and its subscription
stated:
of the nine
j|ATLANTA, GA.—Courts & Co.,
bers of the New York Stock Ex¬
ily house construction will. dominate residential building in 1946,
of
Woods Monetary
approved
Glenn;
Rejoin Courts & Co.
tion,* with a total next year of
$1,350,000,000 in the eastern States,
United
the
An
in residential
of
says.
M. Courts & J.
and religious; buildings in
178%
do not sug¬
limit on the
1946."
as
this : classification.
ultimate
the
industry,"
the
"They do indicate,
however, a moderate speed of ex¬
pansion in the transition year
non-residential construc¬
1945; in
respect to mate¬
manpower
capacity
;The
is ; about
any
study
tion, with substantial increases in
Bretton
given
as
1940.
and
gest
•
Dodge Corporation indicates.
The Corporation anticipates an
increase next year of 20% over
Journal'' said: The
were
houses
time
same
advices
rials
percentage in¬
high as the
highest ever previously attained
from one V calendar year to the
next," the over-all estimate of the
and will add
its name to the list of signatory
nations in Washington on Dec. 27.
At
conditions with
somewhere/between that of 1939
agreements
Press
on
for- the
ing cpst increases into account, it
represents
a
physical; volume
and
■
;
is still comparatively
but according to Dodge's
interpretation this condition is not
likely to last very long. "Present
immediately preceding the
war," a\ statement issued by the
Corporation Dec. 7 declares. "Tak¬
crease
,
the
scarce,
years
a
Government
1945
in
ment fields
dollars,
this
volume
is
greater than that of any of the
who want
for
for
en¬
designing,
building, and materials and equip¬
Rocky
record
to
this much-needed class of
Manpower
"In
results
work
the
rental hous¬
measure
eral Government."
year ; as
the
expected
basis' of
to
building, which is now the one
type of project definitely retarded
by a specific control of the Fed¬
of
volume
next
new
sound
a
courage
greater than in 1945 in the
States
the
made known in United
was
Press
provided by that conference,
pacts were to take effect only
if ratified and signed before Dec.
31
-v
Monday deadline was not
The
As
the
.
first ten months of this year.
accomplished by the
united action of those
and
*;
bles stillitmsigned are Australiaj
total
160,000,000
the other governments repre¬
sented here—to do all in its power
to make these institutions an out¬
are
bilization agreement.
Secretary
,
.
,
.
better world.
.
Mountains.
The estimate for all
* 1 ;
'
' ' V' } construction in the 37 eastern
'The Government of the United. States is
$4,750,000,000 against $3,States is resolved—as, I am sure,
peoples.
;
a
,
construction
new
•
toward
as
■.
estimates
so
hopefully entrusted to their care,
require the wholehearted
it will
,
eligible I nations ' permitted
the Dec. 31 deadline to pass with¬
out becoming charter members of
the World Bank and Stabilization
ceilings all
ing,
,
tarding factors, F. W. Dodge Cor¬
poration,
fact-finding organiza¬
tion for the construction industry,
great international
are
peaceful, and prosperous world,
velopment and the International been assigned a
• -V V /
Mcnetray
Fund, ? the 5" texts v of for the bank and fund.
i 1 Recent announcements of the
Still another government, Cze¬
which were given in our issue of
approval by various Governments
July 27, 1944-^pages 388 to 406. choslovakia,
signed
after
the of the Bretton Woods Agreement
Russia was the only big power ceremonies were over. The Czech are indicated
as follows:
absent with the signing of the Ambassador,
Vladimir .Hurban*
Associated Press advices from
was too ill .to
attend the cere¬
agreement Dec; 7, but she had un?
London Dec., .20 stated that Brit¬
: til
Dec. 31 to ratify and sign as monies, and signed at his Em¬
ish
adherence to
the
Bretton
one of the original 45, said Asso¬
bassy.
Woods plan for a world bank be¬
•; From
ciated Press advices from Wash¬
the Associated Press ac¬
came law today when royal as¬
ington Dec. 27 which added that counts from Washington Dec.. 27
sent
to
the
measure
was
an¬
the larger nations signing were the we take the following: - 1 ■
• ** ■'
nounced in the Rouse of Lords.
United
C Dean Acheson, Acting Secretary
States,
Great - Britain,
The Prague Radio said tonight
France and China.
\
of -State, described the establishthat Czechoslovakia's
; In
later Associated Press i ac*-: rhent of the fund -and bank as [Dec. 20]
Assembly had ratified
counts from Washington Jan. Lit "symbolic of ever-increasing co¬ National
was stated
that Russia and eight operation of all nations" looking the Bretton Woods monetary sta*
otheV
rent
«
deterrent
a
rental
projects.
OPA has
been, petitioned to exempt from
Even in the face of present re¬
; v
two
institutions
peacetime market is
new
therefore, has but just
commenced.,
a
question.
open
"Rent control is
Dollar Volume in 1946
end in itself
only a means to the end of
internatinal peace and prosperity.
Our
an
New Construction
but
gone
upon
the
Whfsas^'iiSf wis/»jft'wpv
*
Republican Committee
Meete in Chicago
two-day meeting in
At its
Chi-
-
Dec. 7 and 8, the Republican
National
' Committee
endorsed;
unanimously the declaration of
principles drawn up by party
members of Congress as a present
ago,
platform, but in order to meet the
objections of members from the •
Middle and Far West who felt that
the
Congressional statement was
provision for
Herbert Brownell,
inadequate, r made
augmenting it.
.
Jr.i National Ghairman, wasvau- ;
thorized to appoint a subcommit¬
tee- of seven to
receive supple¬
suggestions from party
throughout the United
the Associated Press re¬
mentary
members
States,
ported in its Chicago
Dec. 8.
'
advices of
i
THE COMMERCIAL & FINANCIAL
46
Ore.,
List
of
grouped according to dates
registration statements will
become effective, nn»
less accelerated at the discretion of the
days
ago,
which
on
normal
J
at $900,000.
Proceeds—Proceed
placed
SEC.
Dec.
on
filed
19
issued
are
arid
sold
being
are
stockholders.
1.'
,
*
of Dec. 26.
7:7'.V:v-v7
shares
are
being pur¬
group of stockholders. The
Offering—The
chased
from, a
largest
block,
chased
I.
E.
from
Price
Co.
&
de Nemours
Pont
du
be
to
by
received
Chicago
selling
the
sale
and price to the public will be filed
amendment. Company's capitalization
of 540,000 shares of class A, $5
common and
54,000 shares of class
group
by
par
CtC»
,
Lehman .Brothers,
and
i
!
,
be
SHOE
filed
cumulative
shares
of
par).
The dividend
amendment.
'
20
Dec.
on
"
-
"J
?
"
'i,
,
Offering—The price to the public will be
by amendment.
7/
^
'V
Underwriters—Goldman,
Sachs & Co.,
filed
and
v;
,
the
head
Brothers
Lehman
writing group.
Under¬
;
for
due
interest
Jan.
the
at
rate
land,
Ore.
.
in
porated
has
It
is
Oregon
the
acquire
property
vicinity
in
the
to
years
increases
in
be
the
by
business
to
funds
and
other
v
,
be
to
non-
Meeds,
Registration Statement No. 2-6055. Form
(12-21-45).v
filed
£
stock
shares
number
(par $5).
will
statement for an
shares
of
^
of
com¬
Of the total, 238,000
'MijMi
Address
dividend of
share was declared on the
this
Company, payable
Building, Houston,
i,
'
,
January 24, 1946. Transfer
Proceeds—The
cash
net
proceeds to the
by
Corporation
The
stations
the
the
which
the
cost of
built
and
Reconstruction
upon
negotiations
now
Finance
consummation
are
in
now
construction
of
of
progress.
such
com¬
stations is estimated at $6,300,000.
the
event
the
purchase
is not con¬
pressor
In
the proceeds will
summated,
of the corporate funds of the
Underwriters
treasurer
•
part
company.
Webster
and
Inc.,
and White, Weld & Co.
the underwriting group.
Registration Statement No. 2-6056. Form
S-l.
*
&
Stone
—
become
Blodget,
(12-21-45).
THOS. A. CLARK
■
|
DIVIDEND NOTICE
-//
Common Stock 'Dividend
120
of
,
Vi
Directors on
December 19,
1945,
for the fourth quarter of the year 1945, 7/7;
equal to 2% of its par value, will be /-7?
paid upon the Common Capital Stock
of this Company by check on
January
15, 1946, to shareholders of record at 77 7
-
the
close of business
1945.
■
on
December 28,
The Transfer Books will
PACIFIC
COAST
INC.;
AGGREGATES,
filed
a
registration
statement
for
15,000 shares of cumulative preferred stock,
convertible series, $100 par value.
■
Address—85
Second
Street,
San
Fran¬
cisco, Cal.
'3: Business—Crushed rock, sand, gravel and
ready-mix concrete.
7%
'
not
b'
Proceeds—The
redeem
San Francisco, California
\
construction
of
a
new
plant
new
plant at Riverrock, Cal.; $150,000 for
additional
aggregates
bunkers;
$150,000
construction
$120,000
at
Fair
for
of
new
additions
Oaks
plant.
Schwabacher
writers.
&
»'Y
21-45).
warehouses, and
and
replacements
'.«
,
.
Co.
"
V
Registration
&
are
t
Co., Inc., and
principal under¬
■
Statement No.
2-6057:
(12-26-45).
SINCLAIR OIL. CORP. has filed a regis¬
tration statement for 100,000 shares of
by
and
PHILIP MORRIS
&
registration
a
shares
of
$100.
The
holding
obligations
dividend
1
filed
by
shares
says
offering
holders
a
quarterly dividend of 50c
nn
the
pany,
#(<><
per
share
outstanding stock of the Com¬
payable January'31, 1946 to
kholders of record
Liisincss
on
at
for
preferred
rate
will
—
Cigarettes
■,
of
subscribe
the close of
January 15, 1946.
of
to
be
its
149,883
stock,
be
filed
will
carry
the
of 25 cents
will
statement
the- initial
upon
right
receive
to
per? share
to
the
on
the
which
registration statement the company
17, 1944, sold: 150,000 shares of
stock
H.
F.
the
held
the
in
May
cash
no
17,
1944.
proceeds
of
filed
offers
stock
common
and
new
stock,
stock
for
at
to
at
the
of
shares
held
the
rights
preferred
one-half
preferred
common
to
the
each
a
by amendment.
20
price
/
requirements
by
sale, but
purchase price for the shares, being
per share and amounting to a total
of $1,987,500- is payable on or before June
1/ 1947, with interest at the rate of 3%
Sept.
inventories
30,
rose
registration
per annum, payable quarterly.
There
no
underwriters
in
connection
with
volume
of
7
group.
1,000,000 shares
7
7;
v
to
Building,
Salt
MINES, LTD., has filed a reg¬
statement for 1,250,000 shares of
par value stock, non-assessable/
Address—50 Jarvis Street, Fort
Erie, On¬
tario, Can. '
Business—Incorporated on May 15, 1945,
to explore and develop mining claims. -<
Offering—The
public offering price is
35 cents per share.
.
used
Ontario, Canada.
Registration Statement No. 2-6062. Form
filed
Fifth
Avenue,
New
The
common
being
shares
stock
sold by
111.
is
certain
Address—224
Chicago,
of
no
par.
outstanding
and
stockholders. '
South
Michigan
:v
'
is
Avenue,
v-t":;
Business—Specialized protecting packag¬
ing materials.
...1
. ,;
Offering—The
preferred and
by
offering
prices
stocks
common
will
of
the
be
filed
amendment.
ceived
by
from $69,571,841 to
40,000
shares
Proceeds—The
the
net
proceeds
company
of
from
preferred,
to
the
with
/,
,
;
,
;
»'
Form
:'
»
30
'«
the
1
*
7
7
,
notice
dividends.
5%
con-
5%
«The
'
s
'
.7;7;'
will
public
The
,
_
r
be retired at any
at $26 a share,
may
days'
accrued
'•
Building,
Head
»
r
.
con-
•
■
«
to
of the sale of the preferred will be
applied to the purchase of properties and/
or controlling or minority stock interests
in certain
businesses^-: similar or comple-
holders
be
scribe
its
of
fixed
in
right to sub¬
of 91,400 shares
mentary to the type of business conducted
by
^Corporation fVbjc'siits; 7*tibsidiaries;
for
is granting
stock of a date
company
capital
January,
ceeds
in
not
to
the
excess
which
of authorized but unissued capital stock in
the ratio of one additional share for each
three shares held.
The subscription price
is
$20
share.
per
Subscribed
chased
>
board
the
same
for
their
not
of
Colonial
Airlines
proceeds
$1,751,178
will
be
are
of
and
other
the
and
including
Underwriters—No
underwriting..-' .^,.
'»
statement
for
101,769
stock, par $1.
West
CORP.
for
has
par).
-
filed
479,726
The
and
standing
a
shares
&
exefcise
,
for.
be
sale
re¬
of
treasury
of
additional
CHEMICAL
registration statement
of capital stock
(no
are
issued and out¬
being sold by the Alien
information.
The shares
90.79'%;
of
the
to
be
528,390
shares
outstanding.
In
1942,
the Alien
Property Custodian under the authority of
the
Trading With the Enemy Act founc'
that
479,726
shares
of
common
stock
by
amend-
rate
—
reg¬
pre¬
and
75,000
the
in
attached
preferred
Seventh
.»■
warrants
the
to
stock.
The
will
%
'
cer-
-
divi-
be
filed
.
Avenue,
New
'
-
of
1
Offering—The price to the public of the
preferred shares will be filed by amend-
'
Proceeds—The net proceeds will be used
to redeem at $53 per .share'
plus accrued
dividends, all outstanding'shares of $2.75
preferred convertible stock, and to increase
the working
capital of
the
corporation,
All
or
part
a
capital
may
permit,
of
be
towards
interests
s
studio and for additional„studio and studio
facilities
of
the
corporation,
the. exact
amounts Tof which have not yet been determined.
*.
■"
,
'
?<
r"
,
1
f
such additional working
applied, when conditions
the improvement of the
i
7
>
■[
7
? •)
;
.
Underwriters—The underwriting group is
headed by Hemphill, Noyes & Co. and, Hallgarten &
*
'
.
-
Registration Statement No. 2,-6072.
A-2.
(12-28-45)
■
.
-7
Form
,
UARCO,
shares
of
,INC., 'has
Chicago, 111.
registered
stock
common
Address—141
West
(no
,
-
"•
,
Boulevard,
-
-,;«
(
Business—Manufacture
ness
56,161
par).
Jackson
of
stationery forms.
various
busi-
-
-
,,
Offering—The price to the public will be
t * '
filed by amendment.,
.7,7r77.;7.7
Proceeds—Of
will
be
used
treasury for
during
ment
to
the
net
proceeds, $210,000
reimburse
the
funds applied to
1.945 of the entire
ing issue of >2,100 shares of 6%
preferred stock at $100 per
dividends.
accrued
on
The
.
outstand¬
cumulative
share
balance
will
;
and
be
plant expansion program, ineluding $485,000 for machinery and :equipspent
>■
company's
the retire-
a
.7
7
(12-28-45)
UNION
:
a
TRUSTEED
:
registration
FUNDS,
.
,
statement
INC.,
for
has
75,000
'
-
''
7
7 7
Underwriters—Kidder,
Peabody
&
Co.
heads the underwriting group.
-./.O:,
Registration Statement No. 2-6073.
Form
»
A-2.
.
.
717
•
meht, approximately $165,000 for buildings
7
and
$165,000
in
sales " expansion.'
Any
'
balance will be added to working capital. • .7y
filed
the
'
ment
shares of Union Common Stock Fund.
sold in
»
initially to be
the event of the
....
729
"
non-
stock.
common
non-detachable
stock
shares
75,000
are
preferred
on
has
cumulative
for
issuance
the
CORP.
and
himself to
or
.
Form
being 90.79% of the capital stock of Amer
ican Potash," were the property of nationals
of Germany and vested said property ir
be held
'Tl.
%
be
motion pictures.
to sell the 479,726 shares
public sale to the highest
constitute.
will
machinery, ;*77
or for the
%
;77.77%;
Bnsiness-T-production and distribution
shares
qualified bidder.
If any such bid is ac¬
cepted and if the successful bidder plans
to
distribute
the
shares
the
prospectus
will be amended to include the requisite
offered
pari
shares,
for
York, N. Y.
Avenue,
proposes
at
(no
of
Address
products,-soda ash and salt cake.Alien Property Cus¬
stock
of
filed
,of
par)
by amendment.
Property Custodian who directed the com¬
pany to file the registration statement. 7 7
Address—609 South Grand Avenue, Los
todian
shares
warrants
common
tiflcates
a
shares
are
be
(no
common
reserved; for
»,
Jefferson
POTASH
balance
Any
purchase
PICTURES
75,000
stock
detachable
The
16
HARVESTER CO. has filed
Address—5450
the
of-common
maintenance7of
working capital,
corporate obligations.
of
for
COLUMBIA
istered
current
payment
.
•
ferred
balance will be available for general corpo¬
as
:
.
Registration Statement No. 2-6070.
S-l, (12-28-45.)
property and equip¬
cost $1,327,000.
The
operating
corporation.
ment.
esti¬
after deducting ex¬
towards the pur¬
Aircraft
aggregating in
the
available
applied
additional
•
may ,
increase
to
Underwriting—To
which
"
directors
in,' order
for additional working capital
payment of. indebtedness.
'
at
accounts.
own
at
of
ment
stock
offering price of $20 per share,
Proceeds^—Net
chase
capital
by stockholders will be pur¬
the individual members of the
directors
of
penses
The
the
?
consider desirthe supply of V 7
yarns,
fabrics,' materials/ etc.-,
for
the
J
expansion and integration of the business #
able
to
by
Underwriters—The
common,
f
C 7
'•
preferred will be convertible, until 1"
10 days' prior to the redemption
date, if ; *
called for redemption, into common stock,
■;
share for share.
Proceeds—It is anticipated that'the pro-
Business—Transportation by air of maiU
and express.
boron
CORP. has filed
registration statement for 40,000 shares
4%cumulative preferred stock, $50 par,
150,000
-
vertible
York,
-ft''/ 7;7
i7/7 7.;v7,: •
Business—Production and sale of potash,
a
and
$25.
par
Turks
preferred
on
plus
a
An'geles, Cal, •"■'■77
'0 n
TUESDAY, JAN, 15
SHELLMAR PRODUCTS
preferred stock,
vertible
AIRLINES; INC., has
AMERICAN
to
and ". development
7^.-77 77 .• 7" 77. ■
Manning & Co.,
.
7' !
r
;
Offering—The price to
be., filed by
amendment.
-
CHESGO
,
7
In
'
(12-28-45)
7
Power
take-offs,
mowtrs,
window regulators, glass chan¬
nels, miscellaneous automobile hardware,
etc: •
7-7 i- -./■ >
■77^7"*7r.'i,
Offering-—The price to the public will he
filed by amendment.
■•
■
■
J-.
7 Proceeds—Of
the
proceeds,
$1,200,000
will be applied to the repayment of present
bank loans; and the balance for building
improvements, machinery and equipment
at the various plants as follows: Zanesville plant
(implement division) $240,000;
Detroit plant (harvester division ( $155,000/
and Toledo plant (dura division) $150,000.
Underwriters—Reynolds & Co, heads the
underwriting group,
7
■; 7 7
Registration Statement No. 2-6067, Form
8-2. (12-28-45).
7
('r'f :77'
istration
v
New
enterprises
a
Address—808
sweepers,
(12-26-45).
(12-26-45}.
Avenue,
.of
.
DETROIT
Registration Statement No. 2-6061. Form
S-ll.
Lexington
Providence, R. I.
Business—Yarns, etc.
passengers
the
investment.
R.
Y
Registration Statement No. 2-6069.
dend
Business—Investment company,
Offering—At market. •
prospecting
;
vertible
Detroit, Mich.
■
?
TEXTRON, INC., has filed a registration
statement for 300,000 shares of 5% con¬
Business 7—
"
stock,
common
.
S-l.
Registration Statement No. 2-6066. Form
(12-27-45).
UTAH FUND, INC., has filed a registra¬
tion statement for
89.900 shares of capital
continue
of
of
1
CORP/% has'Mii#
ECONOMIC
.
a
S-2.
(12-26-45).
be
Form
Offering—The offering price to the pubis $100 per share.
;7 Proceeds—The registrant intends to use
the proceeds in the ordinary- course of its
business in PalestinO.^ :
7 1
;
;
7 Underwriting—No underwriting.
J - l<-
Y.
registration
will
vested
receive
sale.
lie
.
Address-—S30
N.
of common
proceeds
the
will
7
registration statement for 91,400 shares of
capital stock, par $10<
7
Proceeds—The
of
banking, credit; industrial,
Jand,- agricultural and utility nature.
facilities
V-.-i'
r
time
Registration Statement No. 2-6060. Form
S-5.
name
(12-28-45.)
Palestine
(12-27-45).
Underwriters—To be filed by amendment.
Proceeds—For
/ '<
'
r
shares
benefit
In
Potash
Business—Financing
business
WEDNESDAY, JAN.
•($!;
Address—323
Newhouse
Lake City, Utah.
the
interested
Address—570
York, N. Y.
Registration Statement No. 2-6065. Form
S-5.
debentures.
go
beneficial
registered 20,000 shares
$100 par value. "
Proceeds—For investment.
the
16, 1945, sold
20-year 2%%
will
5,000
August Diehn, a national of
making
total1 shares
vested
PALESTINE
construction
manufacturing
were
The company on Aug.
issue
of
$60,000,000
proceeds
selling stockholder.
for
for
Ger¬
Germany,
of
no proceeds from the
Street, New York, N. Y.
Business—Investment company.
} Y.
Research
and
Advisory Service—Man¬
hattan Research Associates, New York.
Offering—At market.
balances
Frdceedg-~The
G„
The company is informed that in
three Gold Fields groups
sold
the
S-l.
will
STOCKS, INC., has filed
purposes;
substantially increased.
1944 to Oct. 31, 1945, its
$106,-
public
.
cash
A-2.
to
statement for
rate;
Sinking fund
the
proceeds will be util¬
of special stock.
Address—48 Wall
the
.
have
new
$13.25
an
Also
Proceeds—American
(12-27-45).
necessary
statement
received
were
them."
total,
held
are
shares.
furnace
increased
NEW YORK
mated
company on the date of the
sale.
1929
Registration Statement No. 2-6064."Form
S-l.
The
authorization
to
on
to
expected to produce,
treasury to
and
Director,
by the stock¬
Sinclair,"- President
pursuant
net
thq underwriting
July
common
of
MacNaughten & Co.
their
75,760;
shares
of similar stock held in the
479,726.
.
tyhich
.
the
has been declared payable on Feb. 15,
to
of
stockholders
record
Jan.
15,
by
Proceeds—During the 13 months preced¬
ing Oct. 31,
1945, the company's cash
From
purchased
each
Diligentia,
Wintershall, A.
Salsdetfurth, A. G.,'
Germany,
Underwriters—F. Eberstadt & Co., heads
com¬
public
The
par
and
smoking
7-7 777
company
the
for
one
cumulative
shares
the
Africa, ; Ltd.,
American Develop¬
of
and
the Estate
by amendment.
$2,500,000
Offering—The
to
price
amendment,
dividend
of
a
and
in various branches of
Offering—The
be
.
Offering—The
rate
of
Consoli¬
names:
South
vamendmentit7;frr<777,:/'::77-',7;s;:
COLONIAL
holding
stock
subsidiary and other
order,
property
(89.84%) reg¬
Registration Statement No, 2-6068.
electric
new
which;
are
company,
panies engaged
and
being spld
are
Toronto,
Address—119 Fifth Avenue, New York,
Business
DIVIDEND
The shares
Business—Company is almost exclusively
a
CO., LTD., INC. has
statement
cumulative
tobacco.
The Board of Directors has declared
par).
Address—630 Fifth Avenue, New York,
^
filed
price
follows:
as
a
are
present stockholder.,
a
amendment.
^
(no
outstanding and
Underwriters—W.
MONDAY, JAN. 14
filed
stock
common
issued
(12-
Originally filed at San Francisco.
by
the
to
Underwriters—To be filed by amendment.
Registration Statement No. 2-6059. Form
S-l.
be
of
/ Fields
of
all
benefit
many,
at
purposes.
work.
Company, Inc.
used
be
first
1960,
at
the
for
due
aggregates
produc¬
Eliot, Cal.; $300,000 for a
aggregates producing plant to replace
ing
,
Universal Pictures
will
proceeds
$3,400,000
series,
the
.
nance
mortgage bonds;
the redemption
price of 104y2, and to redeem 5,000 shares
of
6V2%
preferred, series A, par value
$100 &t $105 per share.
Any balance will
be placed in the treasury for
expansion
4%
474,726,
plant near the
Florida phosphate rock deposits;
$1,000,000
for additional processing facilities and the
balance added to working capital to fi¬
Utility.
Offering—The price to the public will
filed by amendment.
The bonds will
sold by the
company
at competitive
bidding.
7
-.fj
Offering—The price to the public will be
Underwriters—Blyth
Beckett, Treasurer 77.
of
:
,
by amendment.
1
ly
11
Proceeds—The proceeds will be used as
follows:
Approximately $700,000 for the
filed
ized
has
$4,500,*
be
filed
closed,-.v; 77'
E. J.
CO.
for
be
■
A cash dividend declared by the Board
statement
Business—Public
/
has
PACIFIC GAS AND ELECTRIC CO.
ELECTRIC
&
Madison, Wis.
head
1946. The transfer books will not close.
December 27, 1945
GAS
000 first mortgage bonds, due Jan. 1, 1976:
Address —100
North
Fairchild
Street,
said
owned
standing Common Stock, payable on February 1,
*1946, to stockholders of record on January 15,
be'
registration
a
holders
compressor
,
Offering—The
Proceeds—The
MADISON
tional
R. A. BURGER, Secretary.
will
following
Fields
tratiekantoor
Form
filed
the
Gold
vesting
vested
ment Co., Ltd., 201,531; New
Consolidated
Gold. Fields.
Ltd., 69,712, and Adminis-
statement for 40,000 shares of
preferred stock, par $100. The
rate
purposes,
(12-26-45).
filed
in
The
the
shares
'
Glore, Forgan & Co., head the underwriting
group.
Registration Statement No. 2-6058. Form
together
with
company,
treasury funds,
will be used for the purchase of the addi¬
"
CHEMICAL WORKS has
States.
described
"474,726
Gold
127,723;
" r -" .i 7;'7.'
•
and
Brothers
Commerce
—
•
books will remain open. Checks will be mailed.
CORPORATION
dividend
„
Lehman
—
United
dated
Address—141
West
Jackson
Boulevard,
Qhicago, 111.
'
Business—Phosphorous, high grade phos¬
phoric acid, and phosphate for food, phar¬
maceutical,
technical and manufacturing
1,
The
mission
at
The Board of Directors has declared a
regular
quarterly dividend of 50(f per share on the out¬
3%
debentures
$5,800,000 3% de¬
and
1946,
1946.
identity of the seller will be filed by
amendment.
H. F. Sinclair, President and
Director, as of Nov. 30, 1945, held 168,366
shares of the comhion stock.
According
stockholders.
Business—Operates a natural gas trans¬
pipe line.
Offering—The offering price to the pub¬
lic will be filed by amendment. - I"
%
PRODUCTS
VICTOR
registration
cumulative
$5,700,000
March
follows:
(0.95%)
preferred stock have ex¬
the proceeds of the
the redemption of all of
1962,
due
.(12-27-45).;'
amended,
istered
to
the
purchased from the com¬
pany
by
the underwriters,' while • other
shares
will
be
purchased
from
certain
COMPANY
NATIONAL DISTILLERS
subscribe
to
be
seventy-five cents per
Common
Stock
of
,
1,
rights
S-l.
the
as
'rselling'.vAtockh01ders.;7-"iV7>;^iH;/;;;;-::'
Registration Statement No. 2-6063.
apply
to
Underwriters
TRANSMISSION CO.
a;, registration
of
as
of
Its
Underwriters—Glore, Forgan & Co. heads
underwriting group.
.At ; i-'-'l;
approximately
Feb,
1, 1966,
due
all
the
petroleum industry.
Texas,
,
the
1963, or an aggre¬
gate principal amount of $11,500,000.
•
Lynch,
On December 27, 1945 a quarterly
:
is
of
f
group.
AMERICAN
the close of business
It
;
sale
inventories
It is estimated
and
depreciation
TENNESSEE GAS
February 15, 1946, to Stockholders of record
to
part
company's
pro¬
Pierce, Fenner & Beane head underwriting
mon
7
3
receivables.
Indeterminate
COMMON STOCK
and
in
Of
sale
the
May
antici¬
will
Underwriters—Laird, Bissell
&
Spencer Trask & Co. and Merrill
has
-
next
disbursement charges.
DIVIDEND NOTICES
A;-
is
amounts
required for these pupsupplied by earnings to be
be
in
supplied
S-l.
CAN
at
amounts
will
retained
Portland,
of
the
A,
it
that
says
expected
for
poses
and
corporation
$3,-
apply
series
substantial
within
that
incor¬
1945,
10,
the
of
purpose
statement
that
and customers'
10% payable
; V
..-7;. ■
Building,
Port¬
Nov.
stock,
vide
providing
Meadows'was
will
company
required
authorized capital stock of $100,000.
an
Proceeds—The
tration
777;;7';;:77 ,77%;V;;;
Business—Portland
after
bentures
the
at
the
redemption price of $107.
Accumulated
and
unpaid dividends will be paid from
other funds of the company.
The regis¬
of
from income. '
Address—911
Spalding
only
to
are
share for each 10
Subscription rights
held.
common
pated
1971,
1,
shares
stockholders
preferred
one
M
rT)
common
lative ^preferred
tration statement for $900,000 in unsecured
notes
to
r
preferred
101,823 of the net proceeds to the redemp¬
tion of all of the outstanding 4y2% cumu¬
PORTLAND MEADOWS has filed a regis¬
income
r,
a
from
being
by Self-Locking will be cancelled
and not reissued.
Proceeds, from the sale
of 150,000
shares of common will go to
,
1
'
26.
of Dec.
reducing
flavoring ex¬
expire at noon, Jan. 26, 1946.
Any shares
not subscribed for by common stockholders
will be offered to the public. 1
for 40,000
preferred stock (no
rate will be filed by
•
.
issue
Details—See
of
shares
8
statement
registration
a
INC.,
CO.,
s
offered
rate
BROWN
<
„
,
finance
inventories.
in
debentures
cumulative
pired
gas,1 pressure
Offering—The
,
.
TUESDAY, JAN.
the
A-2.
ice cream cabinets, oxygen,
acetylene and medical gases home freezers,
Underwriters—A.
to
and
tracts, dry ice,
stock, par $5.
\
v
G. Becker & Co., Inc.
common
carbonic
of
regulators and gas cylinders,
consists
B
*
used
proceeds
the
due
manufacture
a
net
the
Avenue,
Illinois.
23,
Business—Includes
7
Kedzie
South
Address —3100
7
shares is being pur¬
54,000
increase
authorize
shortly
CORP. has filed a
registration statement for 72,810 shares
of 3 V2 %
cumulative convertible preferred
stock, $100 par.
Price to the public will
be filed by amendment.
"
issue
Details—See
to
named.
stock
common
Self-Locking Carton
outstanding stock not
presently owned by Shellmar.
Thereupon
the
117,296 shares of Shellmar common
be
$15,000,000
CARBONIC
LIQUID
of
applied principally to the
reduction
of
the
company's bank loans.
The
statement
says
the directors intend
WEDNESDAY, JAN. 9
certain
by
funds, will be used to purchase 600 shares
by
part
on
and were
the
will
sale
registration statement for 150,000 shares of
class A common stock, $5 par. The shares
the
part
stock
Statement No. 2-6054. (12Originally filed at San Francisco.
20-45),
a
in
Thursday, January 3, 1946
owned
balances
expected
will be
Registration
MONDAY, JAN. 7
VISKING CORP.
cash
Co.,
in
income
of
proceeds
underwriter
Underwriters—No
period the company
for
which
cash
total $1,000,000.
capital of $65,000,
THE
sale
the
capital stock
the
of
needs
"Oct,; 31,
1945,
amounted to $33,850,0007 The proceeds of
these loans were added to the company's
from
util¬
ized approximately as followslpGrandstand
and clubhouse $600,000, stables $100,000 and
other improvements which, with operating
issuance
its
bank ;i loans
.
from
with
together
notes,
course
During this
financed
'-'V.:; j7; ■
v'!7;:\:::7';f|%f'77-/v■''>
Offering—The offering is to be at par,
with total net proceeds to the corporation
statements were filed less than
in
885,352.
construct a race track
grandstands, clubhouse,
to
construct
to
etc. PP
registration
twenty
whose
issues
which
on
and
FILINGS
NEW
CHRONICLE
*
^
f""'
^;/.Vt
>
;"'Wall/ Street, /; New
Address—63
j'N.
THE COMMERCIAL
163" 'Number 4452
Volume
York,
Vvv'*"•>1'
TV -'Vv-'
Y.
hold for
investment securities subject to the limi¬
tations
of
the certificate of
incorporatlon
and
to • the
provisions of a'■ trust
and
sell'
Business—Purchase,
and
at
,
,
_
!
■
,
,
\
Offering:—At market,
\
,
,
V/V'V/v;:'
principal underwriter.
named
Registration Statement No. 2-6071.", Form
i
(12-28-45)
A-l.
,
,
.
NEWPORT INDUSTRIES, INC., has filed
registration statement 'for 40,000 shares
>
of
cumulative preferred -Stock,: par .$100
i The dividend rate will be filed by amendV xnent.
/ '■■■
ys '•
^
V
i. a
Address—P.
;
basis
Box
O,
Fla.
Pensacola,
911,
Shares
'
'
The
BISCUIT
CONSOLIDATED
CO.
for by
which
pursuant
which
also
not
at
stock
of
fractional
for
Merrill
—
Lynch,
the
'f
Proceeds—The
net
r.
company,
to
the
heads the underwriting group., /:
Registration Statement No. 2-6074.
Form
tlon
«
filed
Dec.
for
"i 162,500
13
;
present below a list of issues
registration statements were filed
days
twenty
or
dates
offering,
mined or
affiliate
—
of
Electric.
3 filed
Oct.
CORI\ on
TRADregistration
PALESTINE
AMPAL-AMERICAN
a
,
-.
55
,
preferred
:
Scott
CO.
Dec.
on
•
-
•
&
holders.
at-the -close of business-cn -'Janiv 8,
record
into
Price
Canadian
underwriters
havf agrees I to
purchase any unsubscribed preferred stock.
The
public offering prices of the deben
tures and preferred will be filed by amend¬
ment.
k
f.
- " * "
s "
The
1946.
entered
Mines
firm
a
will
expressed
Shares
will
The
make
the
remaining
cials
ICA
offering,
•.
Republic
Central
Inc.
Corp.,
and
$1.
The
YELLOWKNIFE
reserved
tion
-
(par '$5)v>.:V;;•
'
'
>
;,
Details—See issue "of DecV 20./
T
s
Offering—Company : has an authorized
capital of $40,000, divided into 8,000 shares
(par
$5)." There
have been
issued for
property, 2.000 shares, in escrow; issued
for cash 280 shares and in treasury 5,720
shares which are being offered at par for
public subscription; \
•
v\.; ,
'
'
BUFFALO BOLT CO. on Dec.
* *
v
14 filed
a
registration statement for 58,386 shares-of
stock,
common
$1.
par
Offering—The price to the public It
87.50 per share.
■
.
1 ,
Underwriters—General Finance Co., At-
Offering—The underwriters
43,386 shares at a price to
offering
are
be
filed
by
there
addition
may
be
eventually offered under the prospectus all
or
a
part of ar. additional -15,000 shares
of common, issued
and delivered by4 the
Lee Industries, Inc., on Aug.
Buffalo Bolt acquired the assets
subject to liabilities of Eclipse Lawn Mower
to
company
1945,
10,
Co.
of
from
shares
the
Bolt
to
market
worth
dissolved
15,000
Lee
stockholders
Bolt
value
of
Sept.
$10
Lee
shares
Industries
the
common
$150,000.
on
for
common.
its
Buffalo
of
then
were
Industries
Lee
Buffalo
distributed
15,000
which,
per
Alstyne, Noel
underwriting group.
the
on-
12
Dec.
NIAGARA
filed
Co.
&
,-/v
ELECTRIC
registration
a
;
CORP.
statement
for
350,000
shares
of
preferred
stock
($100 par). The dividend rate will be filed
by amendment.
Details—See
Bids
the
City,
of
Invited—Bids
Will
stock
tion
at
Room
up
be
V
.
V
Dec.
for
15
purchase
by the
Broad
Jan. 8,
a.m.,
a
y.
Ottering—Ot .the
14,999 shares being
registered, additional shares in a number
as
yet undetermined, but estimated to be
no less than 6,250 and no more than 7,500,
will
be
offered
to
all
stockholders, pro
at
rata,
expire
Jan.
and this offer
V
J
Underwriters—None named.
served
Y;
N
1946.
;
fof
stock purchase
common
shares
40.000
and
issuance
V' -'"'a*
f&tlts
"•/
upon
of
war¬
common
re¬
Offering—The offering price to the pub¬
lic
be
will
of
)i
$30
share
one
common
unit, a unit consisting
preferred and one §hare
per
of
/'/;/;V ■■' /::|V ■•//:••''.///
F.
Tellier, doing
Tellier 8t
stock.
Underwriters—Walter
CABOT
YELLOWKNIFE
LTD., on Nov. 13 filed
a
GOLD
MINES,
registration state¬
ment for 1,000,000 shares of common
stock,
par $1.
'
:.V;.
Details—See issue of Nov. 22.
Vv-'A :
ROBERTS
under
ousiness
do.
the firm name of
New York, is named
principal under¬
writer-
t
■
/'
/
./•=
& Co.,
Offering—The
per share.
price
to
the
Underwriters—John
named
public
,
f
William
is
30
,,
McCRORY
filed
Langs
is
principal underwriter.
stock, "
cumulative
rate
will
on
statement
,
be
by
14 filed
a
reg¬
for
preferred
filed
Dec.
120,000 shares, of
stock.: The 'dividend
amendment.
of
; v
ire
stock, par $1.
of
Hearings—Stop
stock.
of
dividend
issue
■■
1
of Dec.
:v/
on
pre¬
the
■!
Vx"- ■
'/•' ?":'/:'■
/'..//./://;„
13.
u.-T, .
■
which
the
rate
preferred will be filed by amendment, ';/
Details—See
,
The
4
60.000
preferred
registered
conversion
for
for
4'
a
of
TOWING
COMPANY
4ya%
equipment
165
Broadway
MINES,
registration
a
shares
LAKE
of
capital
:-:yy .
Details—See
issue
of
The—James W.
LTD.
statement foi
stock,
Aug.
$1
par
2.
Offering—The offering price to the pub¬
lic
is
60 Ya
United
cents
States
Canadian
funds.
53
or
New York.
centf
v'■
s
k
:;/ WELCH GRAPE
a
JUICE
registration
&
Co.
Briscoe—Bulletin
of
Business
CO.
on
statement
for
Offering—The 20,392.8
Nov.
shares of
EXECUTIVE
second
CERTIFIED PUBLIC
ACCOUNTANT
held, at $100 per share.
Navajo
Corporation has agreed to purchase all oi
common
discount
any
it
will
shares
at
$100
commission.
or
purchase
the
1
V.y,
23
$100."
are
unsubscribed
Ken¬
20,392.8
par
being offered to the holders
of common stock, at the rate of two shares
of second preferred for each 15 shares oi
the
of
Ky.—paper—
z..-'y/-,^ v'z .,;.y y,
50c.
fi Details—See issue of Nov. 29.
preferred
Bureau,
College of
University
Lexington,
Vera
and
The
Research,
Commerce,
tucky,
of
*
^
^
Martin
on
Over 15 years continuous experience as
without
Principal and Executive in public and
Navajo states
unsubscribed
shares
commercial accounting included;
Underwriters—None
mentioned;
a
registration
of
INC.,
1.
on
statement
for
Federal Taxes.
29
2.
State and Local Taxes.
197,876
3.
Cost Systems:
4.
WESTERN AIR LINES,
War
Oct.
stock, par $1.
Offering—Stockholders of record Dec. 28
common
Standard, Job & Process.
certifi¬
ledger,
general
/
6.
Supervision of large
7.
Commercial Litigation.
8.
charge, small unlisted house,
Consultant to Accountant
and
underwriting,
neers.
Chronicle,
Concise, I informative
ports.
-
Place,
Park
.
Security
11.
Financial
25
,
10.
J 1,
Address—Box
&
Attorneys.
;9. Cooperation with Engi¬
details experience, salary re¬
Commercial
'
excep¬
tional opportunity. Write full
quired.
•
"X;^/,..
/v/'/y; groups.
full
rapidly expanding, consider¬
able
7 /■:
'Z/fy tions. '>;;/'/.//
BOOKKEEPER
Male,
Renegotia-
"v
War Contract Termina-
5.
Analysis.
-
Re-
^
12.
Audits.
13.
Country-wide
Factory
Surveys.
14.
Investigations.
15.
Policy Committee Work.
16.
Assistant Trader (Female)
Conferences.
thorough and varied Wall
St. experience. Excellent secretarial back¬
ground. Christian. Well educated. Salary
Box
open.
Financial
years
C
Box
.
Commercial
106,
Chronicle,
Offering—The price to the public of tht
different series ranges from 99 to
102
The average price to the public is given
Contract
/y///;4iOn.y./
hear¬
on
trust
contemplated
underwritten,
Kentucky State Budget System,
RED
8, N.'Y.
&
Place,
Park
25
y
Financial
New York
No. J
Place,
13
Commercial &
Chronicle, 25 Park
New York 8, N. Y.
|
100.47.
as
Pittsburgh,
jOUiS,
and
SEATTLE
Bids
Co.,
Inc..
St
for
filed
28
Nov.
on
$4,800,000
$
first
due Jan.
issue of Dec. 6.
Invited—Bids
bonds will
be
1429
Walnut
a.m.,
11
CO.
GAS
Details—See
to.
Nordman
1, 1976. The In¬
rate will be filed by amendment.
terest
Jan.
at
Cunningham,
statement
mortgage bonds
the
K.
John
for
the
received
Experienced analyst of industrial
railroad securities, available.
Box L 1227. Commercial & Finan¬
—Questionnaires, Balance Sheets,
Place, New
mercial & Financial Chronicle, 25
and
cial Chronicle, 25 Park
York
Available January
etc.
Park
8, N. Y.
1st. Ad¬
dress replies to Box CFC 7, Com¬
Place,
New
York
8,
N.
St.,
Philadelphia, up to
14,-1946, the successful bid
SOUTHERN
UNION
of
•-
GAS
^:y zy;■
CO.
%
Dec.
on
Statement
registration
a
Complete Wall Street experience
by the company
specify the ■ interest rate.
filed
of
purchase
Senior Accountant
STATISTICIAN
Mo.
We have
10
opportunities for:
27,000
for
cumulative
preferred
1
''/VgHMfrZ'
q- injM|
'
'
*' ■
•
par $100,
Details—See issue of Dec.
Two Traders
•
stock,
Two Assistant Traders
20.
Offering—The price to the public Will be
filed
by
.y■/://■;///'
amendment.
c.
Underwriters—E. H, Rollins & SonS, Inc.,
heads the underwriting group.
We
STERLING ENGINE CO.
of 55
cent cumulative convertible preferred
stock
($8 par)
stock
and 150,000 shares of com^
($1
par).
Details—See
issue
mon
Offering—The
ferred
stock
'....yZ:■/."
of Dec. 20.
/
f
be
shares
offered
of-
first
in
our
installing four additional trading positions
Trading Department and require the services z
of two
high grade traders
traders
or
to
pre¬
the
reserved
for
ferred.
any
-The
preferred
time into
conversion
is
&
of
UNION
Dec.
14
ASBESTO
filed
a
common
Co.,
The shares
are
are
&
stock.
Inc., 57 Wil¬
CO.
Mr. Joseph
for
stock
(par $5):
issued and outstanding and
or
telephone
H. Young, partner.
120
Z;:: -/Z.;,)." V- r.Z
Private
Direct
BROADWAY, NEW YORK 5
Telephone COrtlandt 7-9400
Boston,
Wires to
Philadelphia and Hartford
being sold by certain stockholders.
/
y ■/ .■A
■
///■/ ./■.
two assistant
J. Arthur Warner & Co.
on
statement
RUBBER
registration
common
as
pre¬
liam Street, New York 5, N. Y.
217,384 shares of
well
convertible,, at
shares of
Underwriters—Burt
as
men.
Write
holders of the company's outstanding com¬
mon shares at $10 a share.'
The common
are
service
,.
.
100,000
to
are
are
12 filed
Dec.
on
registration statement for 100,000 shares
:: .,v /
'•*?;
Texas,
New York 8, N. Y.
Details—See Issue of July 19.
y/y;yy
'
of
Zy/■
order
not
be
16.
underwrite)
Inc.. Dallas. Texas.
cates. i
shares
150,000 shares of
In addition 150,000
were
common
reserved
ferred
Dec.
on
convertible
and
$100,
CORP.
statement
cumulative
par
common
shares
CARRIER CORP.
istration
STORES
registration
a
shares
shares
in exchangi
Inc.,
Principal
—
.
cents
to an ad¬
regis¬
common
530,823
Julj
registration statement for $500,-
serial
000
a
Nov;/i2;^//7"/y//Vl:
Co.
filed
Fifteen
'./■,/ ■'
of
of
of
pended now pending before the SEC.
exercise of war-
Vt
Details—See'issue
of
corpora¬
St.,
40,000
rants
Order
Stop
MANUFACTURERS
and
Bennett & Co.
ings to determine whether the effectiveness
of registration
statement should be sus¬
shares
CREDIT CORP/ on
Nov. 13 filed a registration statement for
40,000 shares 6% preferred stock, $25 par,
and 40,000 shares of common stock, $1 par,
acquisition of 54 %
of Seatex Oil C*».
of the sharer
shares
balance
Bennett & Co.,
be deregistered and
will not be issued/
registrant
to stockholders of
Products Corp. in exchangi
Underwriters
stock
Any
1946.
30,
for will
share which
per
asset value,
net
on
subscribed
not
of $100
price
a
less than
is
will
the
issued
to Bennett
issued
registration
Details—See issue of Dec.'20.
v,V
20.
the
received
1800,
11:30
to
,V
'
.
issue
14,999
stated
registration statement for
shares of capital stock, minimum
value of $50 per share.
was
J
BUFFALO
Dec." 1
■;/■•'VV
;,
Underwriters—Van
heads
share,
Industries
17, 1945.
at
filed
on'
return for a like
to
is
will
issue
113,468
150,000
Underwriters—S.
CORP.
for
'
for various obligations of the registrant.
tanta/ Ga., is fiscal agent.
GRAHAM-NEWMAN
'
•
the
13
Aug.
on
N., Y.
(Canadian).
,
&!
of¬
$16.50
par).
V
stock being registered have heretofore beer
,
4.
Oct.
of
issue
with the
100,000
The
11 filed
GENERAL SECURITIES CORP. on Sept
filed a registration statement for 200,000 shares of common stock, par $5.
28
is
•••
.
7.
is the sole underwriter as
Inc.,
ditional
.
■/,/
24
sharet
990,793
June
loaned
addition,
Steel
tered.
/.
:
Details—See issue of Dec. 20.
In
'
of
of Federal's stock.
for all
will
---.y-'-"
.
:
Details—See
In
Federal
Underwriters—Burr & Co. heads the un¬
derwriting group.
shares
of
registered will be
and
the public
Offering—The price to
be filed by amendment./
for
(par $1).r
issue
209,970 shares in
In connection
1.
Details—See issue of Nov.
|
'
amendment.
outstanding
and
issued
Oil
shares
of the outstanding stock
Inc.
/
,
Underwriters—None named.
receive
The 160,000 shares of com¬
is
statement
be
at
public.
Offering—Of the shares registered BenCo., Inc., parent of Red Bank, will
aumber
be
being sold by certain stockholders..
for
statement
stock
CO.
(no
aett &
260,000 shares of common,
dividend rate on the pre¬
filed by amendment.
The
preferred.
mon
Dec. 10 filed a registra¬
5,720 shares common
MINES, LTD., on
stock
GOLD
be
OIL
statement
stock
A
the
r
May 31 filed
on
will
officers
New
a
public
the
to
Underwriters—It
,
stock
common
/
registered includes 100,000 shares
for issuance upon conversion
of
common
the
BERYLACA
v
will
ferred
\
,
par,
par
,.
price
BANK OIL CO.
Details—See
registration statement for 60,000
convertible
preferred.
$20
Details—See issue of ' Dec. 20.
•Offering—Price to public will be filed by
amendment.
T'
!
■
\
> ; Underwriters—Ho'rnblower & Weeks and
June
filed
/
and
share.
per
investment, and not for distribution to
being sold
are
of--
and
additional
Breen,
for
Nov. 9 filed
on
shares
76,310
employees
to
be
employees
prospectus.
F.
i•
statement for 100,000 shares
stock, par $1.
The shares are
registration
of
employees.
a
I
>'-V y?
$:\.A. *• • ■'»
\
outstanding and
and
RED
cumulative
3hares
:
■
filed
25
129,960 shares of common- stock,
$5.
par
and
are
will
to
share.
a
additional
An
fered
;
Underwriters—Van Alstyne, Noel & Co.,
heads the underwriting group.
ol
to
securities
<
W.
this
George
OSAGE
class
York,
filed
27.
•'V,
.
150.000
under
—
shares of second preferred stock,
CORlt
$5.75 per share.
acquired
are
-
/ Offering—The
aforesaid.
as
shares
195,000
;
29.
The
of
VIRGINIA
statement
Details—See issue of Nov. 22.
GENERAL INSTRUMENT CORP. On Oct
i2?fHed:»;registration state¬
Decv
on
ment for
.
terms
so
Co.,
by certain stockholders.
to
AMER¬
OF
issue of Nov.
sold
Underwriters—WiUis E. Burnslde
group
BiATTfiRY
PANTASOTE CO.
common
Issued
purchased by the company geologist, offi».
the underwriting, group.
CO.
in
not
-v;
registration
Ltd.,
commitment
■
THE
of
?/'
Finance,
generally to the public
the option
not 1 be exercised" by
Mines Finance; Ltd.; the company
Toronto
itself
is
money.
,
CANTEEN
/
-\
•
?
offered
be
Should
Underwriters-^-Smlth, Barney & Co. head
AUTOMATIC
,.
28? filed
,,
4.
will
public
being offered by the. corporation.
•
Request to withdraw registration. state¬
J.
purchase
480,000
shares
at
$1.23
per
share, and has an option on 1,920,000
shares at the same price.. The offering
is to be made among the shareholders of
Ventures,
Ltd., Froblsher, Ltd.,
and
La
Luz Mines, Ltd. (Canadian companies)
at
SL95
per
share,
and
to Eureka stock¬
by the company to the holders of its com¬
mon stock at a price to be filed by a~""mdment at the rate of one share of preferred
for
each
261 shares
of common
hem of
the
registration
a
/ Underwriters—None.:
2,595,000
for
Oct.
of
Offering—Toronto
Offering—The preferred stock is offered
13.
Offering—The price to the public is $10
per share.
/
,
issue
New
a
35,000 shares of capital stock, par $10.
Details—See
•
■
and Irving
filed
23
Nov.
on
for
stock $10, common
-;'\/v / :
Colony Corp., Si¬
Co,* Hirsch & Co.
•
Details—See
s
Details—See issues of Dec. 20. ;
to
CADMIUM
NICKEL
-
*/ registration
statement
shares• of common, par $1;
amendment.
-
price
be
registration
a
220,000
by Hayden, Stone &
Co., Inc. •
temporarily postponed,.
ment filed Dec.
has
Dec.
Curb
on
to
crease
Co.,
headed
be
Offering
list
Details—See issue of Aug.
the
and Halsey, Stuart &
6.
EUREKA CORP.; LTD., on Sept.
■
of
19,077
through -optiofts
Offering—The price to
the
public If
$12.50 per share.
Underwriters—The
underwriter
is
Gil-
the
&
100,000 shares common
and
Rice & Co/
14
filed a registration, statement for $25,000.000 20-year debentures due Jan. 15, 1966
and
102,000
shares
ofcumulative pre
ferred stock, Series B, par $100. The in¬
terest And, dividend latest; will be filed by
REFINING
will
on
convert¬
-
ATLANTIC
Offering—The
,
,
issue
Details—See
mons, Llnburn & Co., Childs, Jeffries &
Thorndike, Coburn & Mlddlebrook, Grubbs,
,
Evans
A.
the
on
*
.
shares
held.
is
VALLEY
basis,
to
shares
com-
•
for
statement
cumulative
cent
Underwriters—^First
directors and
the
of
efforts
the
AMERICA
OF
CORP.
registration
shares
Offering—Preferred
.
through
filed
3
Stock $5.
Details—See
for
share
price
NEW YORK DOCK CO. on Dec. 5 filed
competitive
at
Details—See issue of Dec.
Offering—The price to the public >
$5.50 per share.
.
v,
V
Underwriters—The shares will be sold
employees of the corporation,
sold
be
shares
for
The
registration statement for $12,000,000 first
mortgage Vh% bonds due Dec. 15, 1970.
/"•
stock $1 par.
shares of 1% cumul¬
preferred non-voting shares.
issue of Oct. 11.
ative
V
their
share
a
payment.
four
York
shares
Inc., Atlanta, Ga. heads the group.
subsidiary or an
;
on
cash
the
New
filed
oppor¬
be filed by amendment.
Underwriters—The
underwriting
ELECTRONIC
ING
•
Underwriters—To
ible
a
Underwriters—Ciement
bidding.
Dec.
shares
the
each
York, is named underwriter.
on
22.
public is $103 per share.
-
,
70,000
atatement for 400,000
-
by
Dallas, will cease to; be a
more ago,/but whose
have": notbeen deter¬
unknown to us.
are
*
' '
;•
.
The ; shares
are
presently
Electric Power & Light Co.,
parent of Dallas, and proceeds from the
sale will be received by Electric Power &
Light.
Upon consummation of the sale
UNDETERMINED
We
20.
issue of Dec.
Nov.
preferred
exchange
to
new
plus
Offering
owned
cumulative
$7
tunity
stock
$20).
Details—See
whose
and
CO.
statement
of V common
shares
of
additional
others at $20
that
Nov., 29.
list
to
which
Underwriter
CORP.
of
Exchange 350,000 shares of its
shares
Offering—The company is offering to
holders of its $5 cumulative preferred stock
.l
,
issue
issue
corporation
to
&
preferred stock par $100 per share.
Details—See
'
SERVICE
registration
of common
a
shares
stock
registration statement for
of 4Va%
cumulative
con¬
a
shares
vertible
TERMINAL
&
LINEN
filed
16
30,000
shares
/•- ■'■': •'
registration
a
some
four
mentioned.
RAILWAY
on
(par
DATES OF OFFERING
per
each
■■"■
/ DALLAS
V
(12-28-45)
S-2.
record
Nov.
share in-the
$10
for
share
one
Underwriters—None
ing a new plant at Oakdale, La.
Underwriters—Union Securities Corpora-
at
January
of
held.
defray the cost of construct¬
to
in
ratio
of
stockholders
common
time
the
general funds of
with
proceeds,
J
will
apply
will
company
NATIONAL
Offering—The new stock will be offered
CONDITIONING
filed
for
presently issued and
outstanding and application has been made
,
Business—Naval stores. /■'
Offering—The price to the public
be filed by amendment.
••••.■
;
AIR
21
500,000
share
new
Rights expire Jan. 15.
An
mon
Pierce,
Fenner & Beane and Kidder, ^Peabody
Co., head the underwriting group,
heads
Co.
Curb
/'V.v./
Underwriters
Nov.
for
Details—See
war¬
1946.
given the right to subscribe to 102,489
shares of $20 per share irt ratio of
Offering—The price to the public is $4.50
per share.
Application has been made by
which will remain valid until Dec. 1,
rants
&
stock, par 10 cents, of which 150.000 shares
are to be offered through
an underwriter.
purchase
reserved
common
exercise
upon
new
one
STATES
on
statement
attached to such shares of stock,
the shares of
issuance
common
UNITED
CORP.
purchase
by the
preferred stock
common
amendment,
fered
purchased
cumulative
the
by
Underwriters—Kuhn, Loeb
the underwriting group.
stockholders.
will
are
Offering—The price to the public will be
not
are
47
Details—See issue of Dec. 20filed
the (ratio
in
preferred
common
are
5%
"to
warrants
except
Dec,
on
of
27,
preferred
new
of
holders
a
of
Dec.
share any of the 150,000 shares of
common
registration statement for 80,750
stock, par $1.
Details—See issue of Dec. 20.
:
12 filed
shares
record
underwriters
$22 per
''
r, • '
r
FINANCIAL CHRONICLE
share
of
subscribed
of
underwriting group.
of
3/50ths
shaYes
preferred as are not sub¬
scribed for by
the common stockholders,
together with the balance of the authorized
120,000 shares which are not offered to
stockholders."
The
public offering price
will be filed by amendment.
• ■
Underwriters—Harriman Ripley
Co.,
Inc. and Hemphill, Noyes & Co, head the
such
.
for each
common share held at $104 per share. The
underwriters have agreed to purchase any
of common held1.
underwriters have agreed to purchase
■The
r*
\
Proceeds—For investment. Uhderwriters—Lord, -, Abbett & Co., - Inc.,
is
of
ferred for each 100 shares
agreement.
stock
mon
price to be filed by amendment,
of so many shares of pre¬
a
the
■ /
are
Offering—The company will offer the
preferred stock to the holders of its com¬
mon stock on a pro rata basis upon terms
on
&
?•• •■
Offering—The 60.000 shares of preferred
being offered to holders of its com¬
20.
Details—See issue of Dec.
,
if
CTV-*•>>./"-•■•■V:1- z/Z.,/■'
?/'*
■"'
■"
'■/:'->
•
••
•/' ■' ,■/'.
■
[i:-
Y.
^
THE
Thursday, January 3, 194(5
CHRONICLE
COMMERCIAL & FINANCIAL
48
Establishes
Eric Johnston
Piofii-Sharing Plan
President of
and New "Czar'' of
of Commerce
U. S. Chamber
Motion Picture
Industry Announces a
Plan to Share Profits
of His
Employees. Says It Is Solution of Labor* ;i
Management Problems and Will Aid High Level of Production, f
According to a dispatch of the United Press, Eric A. Johnston,
President of the Chamber; of Commerce of the United States and a
Spokane Concerns With
member
P
of
Truman's
bor
-
If we cannot
labor-management relations we
cannot secure the high level of
of
La¬
Manage¬
production
ment Advisory
in
essential
so
our
firm announced.
ment banking
of
unit
one
plan among
the employees
of
his
three
-
v;
toward
States
ment
Treasury
the
in
tinued
general partner of H,
a
become
Co, to
a
Hentz &
general partner
they are part of the management
and that they have a voice in
what's
going on.
•
.
-
\
•
ESTABLISHED 1919
>1Teletvoe N. Y. 1-1397
Broad Street for the
Sardik's Inc.
Keyes Fibre Co.
latter firm. :
Waltham Watch Co.
.
63 Wall Street,
Adams & Peck,
New York City. ;
ton Co.
Says
;;
Admission of the new partners
iii the
previously reported
.23
................
Pennsylvania Securities
14 and 15,
pages
on
Airplane & Marine
Securities
<""T':
.
BOSTON 9, MASS.
,
Hanover 2-7913
Hubbard 6442
specialize
We
Industrial Isxues
-
Investment Trust
:
Stocks and
Public Utility
TEXTILE SECURITIES
Securities with a
New York 4/N. Y»
AFFILIATE: CARL MARKS &
Bendix Home
Appliances
s67.SO
Wilcox & Gay
\
\
it
..■■■
«"
A
4-
J v
par
"
•
^
' '
>|_'f
I
fit
ri'
'
'
on tKe 5% $fC0
preferred stock of a
New Engiandi Company
ARREARS
\> u
•
1
1
established in 1862.
"
i
£ Kobbe, Gearhart & Company
NEW ENGLAND
;j
.
Members
INCORPORATSO
...
4 5
1944Earn. Bef.
,
new york
WALTER
*
;
★
...
■
.^64.43
21.88
..
Earnings since 1939 range
$12.82 to $57,33 a share
from
after
■'taxes.;'
1-576
"
'
-i)
*^
England Local Securities
•■'■..v,-
Taxes
After Taxes
1944 Earn.
,
YORK 5
'
BELL TELETYPE
r»
Enterprise 601
REctob 2-3600
New
TELF.PTtOXF
PHILADELPHIA
TELEPHONE
NEW
STREET.
NASSAU
Association
Dealers
Security
York
New
'
s'ili
i
Tele. BOston 23
,
Telecoin Corporation
CO. Inc. CHICAGO ;
Ti; XT I L £
"■'■■■
BOSTON 10
FEDERAL STREET,
Majestic Radio & Television r
*'W
.
■
Unlisted Securities
Lear Inc.
HAnover
2-0030
New Eng. Market
Established In 1922
Bendix Helicopter
& Pfd.
On Mont Laboratories
SPECIALISTS
•
Bank
Insurance and
%
Clyde Porcelain Steel
,
TeletypeBS 323
NowTork
'
Boston-
Frederick C. Adams & Co.
;
Baltimore Porcelain Steel
| HARL MARSS &r.0> INC.11
:
Section
Globe Aircraft
Int'l Resist 6% Pfd. & Com*
Ironrite Ironer Com. & Pfd.
Amalgamated Sugar
Artcraft Mfg. Com.
^
|
RALPH F. CARR & CO.
Tel. HANcock 8715
MARKETS
FOREIGN SECURITIES
Instruments
Schoel 1 kopf Mutton & Pome roy
specialists in
Trading Markets in
|
Oklahoma Interstate Mining |
Markets-- Walter \Vbyt«;
Tomorrow's
Telecommunications
Finch
24
•
.
one
has returned; to
50 Broad Street
,
Halle Mines Inc.
New England
Telephone
HA. 2-8780
Exchange PI., N. Y. 5
W.
Morris & Co.,' members of the
New York Stock Exchange, and
is opening a New York office at 30
"Chronicle" of Dec. 20.
NY. 1.971
Aas'it;
Y. Security Dealers
Members ti.
40
| Mr. Blumenthal's admission to
throughout the eight Wat Loan partnership in A .- W. Morris & Co.
was
Foreign
;H'l
Angeles firm of A.
of the Los
unit for each year
Campaigns.
For the past seven pFsviously was reported in the
of continuous service, five units
"Chronicle" of Dec. 20,
;
-S p okan e,
years, Mr. Falsey has been a tnem*
for each term served on newly
Wash, con¬
created "junior" boards of direct ber of the New Haven City Board
Eric Ai Johnston
cern s;
the
tors composed of employes, five
of Finance.
;• !
INDEX
Brown - John¬
units for holding a
supervisory
ivX
•■.^^Page
Mr. Sampsell has been manager
ston Company, retailers of electri¬
position, fifteen units for being
Bank end Insurance-Stocks....>.....22
cal equipment, the Columbia Elec¬ an assistant department head and of the Chas. W. Scranton & Co.
Broker-Dealer Personnel Items....... 6
tric and Manufacturing Company,
twenty-five units for being a de¬ New London office for the past 12 Business Man's Bookshelf.....»...... 47
and the Washington Brick 'and
partment head. ,
' V
V ' years. In World War I he served Calendar of New Security Flotations.48
Lime Company. It is Mr. John¬
It is reported that the value of
Canadian; Securities
....24
as an Ensign in the U. S. Naval
ston's purpose to allow employes
Dealer-Broker Investment Recommenabout 25% of the net profit, be;- the units will be determined each Reserve.
After the war he was
dations aiid Literature,,....12
fore taxes, of each concern, to be year by dividing the amount to
attached to, the American Com¬ Municipal Hews and Notes
..». ;40
distributed among them according
be shared by the total of units mission
to
...............20
Negotiate Peace at Mutual -Funds
to a point system.
j
credited to all employes that year
Paris, v Prior-to joining Chas. W, .NSTA Notes ............r.,........13
"We must bring industrial de¬
Our Reporter's Reporth..............34
mocracy into America," he said
Scranton & Co. 16 years ago, Mt.
Our Reporter on Governments........38
in his announcement. "We hav;e
Price Rejoins Adams-Peel? Sampsell was a member of the Public Utility securities.. . ...........18
political1 democracy and so we
Railroad Securities.. *
.16
Raymond K. Price, released firut of Tiley; Pratt Co.; Essex, Real Estate Securities.................11
must have democracy for indus¬
try to make workers feel that from active duty with the AUS, until it was sold to the Torring- Securities Salesman's Corner.. .......1-2
earnings,
Corp.
Cinema
M. S. Wien & Co.
leadership
t i ve
■; a c
East Coast
resigned as
his West and
business interests, has
appoint¬
Department
j
Morris
link
to
;
Blumenthal, in a move
A. Pam
under
volunteer worker
as a
N. Y. Office for
Depart¬
Treasury
;
U. S. Finishing
Blwneiilkal Opening
high schools there.
United
of his annual
profits, for each $100
Majestic. Radio
Mexican
was born in New
educated in the public
' I
Bendix Helicopter
Hadley & McCloy.
For the
past four years he has been active
in
war
finance
work
for the
and
a
credit
England Public Service
Gaumont-British "A"
City,
here¬
Milbank, Tweed, Hope,
be
after
•'
of the organiza*
as
a
"dollar-a-year-man.^
tion and that he is helping to prof ment
mote policies. Most important, he
Wheii the War Finance Committee
wants to share in the profits he
was
originally formed in New
helped to earn." , \
'.'; ; Haven iq May of 1941, he was ap¬
Under Mr. Johnston's proposed
plan each employe will receive pointed Chairman and has con¬
profit-sharing
New
Mr.; Falsey
Haven and
feel he is a part
that
he
was
introducing a
.
Street,
New York
The name of the firm will
Broad
Stock
Jan.
on
ners
post-war years. One of the best
methods of improving industrial
relations is to make the employe
Commit tee,
who recently
became
the
"czar" of the
motion pic¬
ture industry,
announced
announced that
until recently the
Assistant Secretary of War, has
become a member of the law firm
of Milbank, Tweed & Hope, of 13
became general part¬
2, 1946, the invest¬
Exchange,
Investment
John J. McCloy,
Sampsell, asso¬
ciated for 27 years and 16 years,
respectively, with Chas; W. Scranton
&
Co,,' 209 Church Street,
J. Falsey and Paul
members of the New York
WALLACE, IDAHO — Richard
Fudge has formed the Fidelity
Co. to engage in the
securities business;
•:
K.
been
has
It
CONN.—William
;;NEW HAVEN,
" solve ~~ problem
~
, ,
.
the
w
^
:
esident
r
Fidelity Inv. Co. Formed
Falsey & Sampsell New John J. McCloy Joins
New York Law Firm
Scrantcn Partners
;/■ xfi 'ir ★ J ? \ /I A ^ 11 _/{jj1;.
V /'' ;|
Recent Price;
Sy
*
★
.
JICONAOLLY
&
Write
COJf
or
call for Analysis
M.C.P.
s
INCORPORATED 192S
24
FEDERAL STREET,
Telephone Hubbard 3790 '''^■<
>
BOSTON 10, MASS.
Bell System Teletype
>\ ^
Unlisted Securities
Specializing in
V
BS-128
BANK
INSURANCE
—
148 State
Northern
Founded 1897
Wt:'>"t-'V;. ■
,
Sunshine Consolidated
f Pressurelube, Inc.
k Reiter-Foster
Pfd.
Oil
Broadway
New
York 5
'
Bell Teletype NY 1-886
—
REAL ESTATE
IS""*-"
V"".
'■ u/
->.7'^ '
1 A'.
share.
liabilities.
>•/",'
BOUGHT
ri H.-.f
—
W
j
^ vi'h
COMMON STOCKS
v:-/.
'V
SOLD
—
.
WANTED
1
:
.
T': {''*t klWV
'•
V'V "L\'.*4
Blocks
QUOTED
VI!'%*'*.;'/UlV.'I•r-'-{! • *>• v~« • ''Vv-V '• v'l'•*
4. Current yearly dividend $1.00.
5. Average earnings 5 yrs.
No
No preferred
about $3.
stock.
bank loans.
about
208 So. La Salle
6%.
Amos Treat & Co.
Wall St.
.
of Securities
REITZEL, IRC.
St., Chicago 4
RANdolph 3736
Special Report Available Upon Request
40
REHER, MITCHELL S
low-priced stock to yield
J, A
Telephone COrtlandt 7-0744
sb!
3. Current assets 4.3S times current
No bonds.
120
BONDS, PREFERRED AND
Net current assets $13.56 per
.
W. T. bonn & co.
-
2. Net book value $20.63 per
INDUSTRIAL
—
Mass.
LUMBER & TIMBER
IUII Works ||
!
San-Nap-Pak
U. S. Radiator,
PUBLIC UTILITY
Engineering
St., Boston 9,
Tel. CAPitol 0425
c
New York 5, N. Y.
BOwling Green 9-4613
western UNION
; TELEPRINTER
'||>"WUX'' '
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BELL SYSTEM
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TELETYPE
CG-989
Hill, Thompson & Co., Inc.
Markets and Situations
120
for Dealer*
Broadway, New York 5
Tel. REctor 2-2020"
Tele. NY 1-2660
@FedFRASER