Full text of Commercial and Financial Chronicle : January 31, 1946, Vol. 163, No. 4460, Section 1

View original document

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

"US.

ADM.

LIBRARY

•'y.r

'...

•

•Final

•'

• •

•

*•

Edition

ANNUAL.REVIEW NUMBER

2 Sections-Section

isJ'A' V,

7k e

Financial
Reg. U. S. Pat. Office

Volume

Number

163

4460

New

Gov't-Guaranteed

Loans to British

York, N. Y., Thursday, January 31, 1946

Elusive Dream of Full Production Debt Management - Interest Rales
By MELjCHIOR PALYI

V'*V.

,'r

'•<

"■

•

By J. K. RIDDLE

*•;cOrt• A:£••

Dr.

Industry

Palyi Maintains That Because We Are in the Midst of
an Inflation
Psychology, Shortages Are Produced, Since
Inflation Itself Brings About Shortages Through Wild

■

By PAUL

Correspondent

EINZIG

Says

Forthcoming and Unrestricted
Spending. The Spending, He Contends,
Not Only Aims Arises From a Plethora of Money and Under These Con¬

Investment Control

ditions of Expanded Demand, There Is a Check on the
Expansion of Supplies. Sees a Continuous tWave of
Into Unwanted
Strikes During Inflation Period, and Does Not Look for a
Industries, and
"Buyers' Strike" for Long Period Ahead. Holds Because
Will
Provide
Encourage¬
ment of Capi¬

tal

Desired

Fields

There Is No Gold Standard
There'll Be More Inflation
To
we

understand

facing, take

are

port) Through
G

w*'

,\'

ee s

May Prove More Liberal
of

sion

g LONDON,. ENG. ;-Tbe
tioii

was

tience

inter¬

the

Government

the

about

some

principles involved it had

(Continued

Melchior

utter

tives

opinions of

starvation

tially during the war, from which

top, that

"A" & Ordinary Shares

before.

The

fact

is,

wage rates are now-some

(Continued

page

•

Successors

HUtSCH, LILIJENTHAL

j
CO.-/

Members New York Stock
and other

Chicago
r,.

S-OfiOO

A-

Geneva

bank

policies,

and

create

few

economic

Exchange
Exchanges "£.+ •. ; 1

/
,

Teletype NY

Cleveland

Established

541. ^

sible is

Pa?e

Troy

.A"'X

Canadian Securities

..<•;.>.•».•.•

Dealer-Broker ' Investment
.anendations and.

Mutual
NSTA

Funds

•

Recom-

......,.............

v; ■J Jpa ge

-■:

Utility Securities........

524
528

held

Securities

Tomorrow's Markets—Walter

Salesman's

genuine

concern to every

(Continued

"Albany

.....

Springfield

■

pages

Securities

Section

•

Prospectus

HUGH

State and

BROKERS

vf-

NEW YORK

LONG

Members New

"V.. ''v

Bond

•
•

634 SO. SPRING ST
LOS ANGELES 14

•

THE

•■.

30 Broad St. ;t:
Tel. DIgby 4-7800

New York 4
Tele. NY

1-733

NATIONAL BANKs
:

Copv.

THE

Preferred

CITY OF

North

90c

Tel.

REctor

$2.40 Conv. Preferred
oh

request

HART SMITH & CO.

request

Telephone:
•Bell

Enterprise 6016

;

REctor

Teletype

iWM'i'w

York

WILLIAM
Bell

and

Security
ST., N. Y. 5

Dealers

Assn.

HAnover

2-0980

Teletype NY 1-395

2-8600
New York

1-635

ira haupt & co.
Members

Members

New

Members New York Stock Exchange

120 Broadway, New York 5, N.T.

Teletype N. Y. 1-576

Philadelphia Telephone:

upon

Y, f

Reynolds & Co.

Y, Security Dealers Ass'n

2-3600

Co.

Conv. Preferred

Raytheon Manufacturing Co.

INCORPORATED

New York 5

West.

Utilities

Solar Aircraft Company

Prospectus

MEMBERS NEW YORK STOCK
EXCHANGE

NEW YORK

;

Common

.■

>••

Kobbe, Gearhart & Co.
Members N.

CHASE

Analysis

45 Nassau Street

•

Department

York Stock

Exchange
Members New York Curb Exchange

COMPANY

The Firth Carpet Co.
•;

SECONDARY

BULL. HOLDEN & C9

and

Common &

;

TELEPHONE-RECTOR 2-6300

;

Acme Aluminum Alloys, Inc.

MARKETS

14 WALL.ST.. NEW YORK 5.N.Y.

•

;

Hardy & Co.

Request

48 WALL STREET

FINANCE

•

Bonds

and Dealers

;

Municipal

Brokerage

for Banks, Brokers I

incorporated

CORPORATE

BOND

;'{

Woonsocket

573)

536 and 537,

Bond

;

Syracuse
Wilkes Barre,
Washington, D. C.

f";'

page

.Z....... .608

Missouri

531

RAILROAD SERIES

Buffalo

•

banker

country.

Whyte

1927.''.

in the

man

/ 606

Our Reporter's Report.!;...537

;

Pittsburgh.,,; Dallas
Baltimore

the

system

and business

Comer..:.... 607

Says

the-

41 %

banking

530

...

604
r

—...... —..

Real .Estate Securities................

.'JY*, 527

Our Reporter on Governments.

•

Railroad Securities

Literature....... $26

Notes;;.^-:.

•/-^

529

Security Flotations 611

of
over

is
.

Public

propor¬

Service

PHILADELPHIA

■

easy

The fact

debt,

60^

Broker-Dealer Personnel Items.....,
Calendar of New

'•■/■•■•

Street, New York 5

pos¬

tion

NEW YORK STOCKS, INC.

request,

INVESTMENT SECURITIES

BOSTON

1-210

•/•.'.
64 Wall

London

(Representative;

Prospectus

maladjust- ;

INDEX

R. H. Johnson & Co.

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

\ with

rence

ments

on page

that/such

Interest!

normal central

large

*
Bank and Insurance Stocks.;;

Higher

public,

task.

on request

Hirsch & Co.
.

the

during

J. 1946 is included in this issue, starting

COMMON STOCK

to minimize

585)

Alaska Airlines
-

"i..

Long Term

Corp.*

Nu-Enamel
Prospectus

prevent un¬
due interfe¬

execu-

misery, v; The fact is, how¬

C The management of the debt presents about as many problems as
financing of the war, and in some respects it may be even more
;
—-—
J* difficult. Ma¬
naging such a
huge debt so

the outlook for business in their fields

and

the

of the nation's leading

many,

of
relieving
itselffrom

Palyi

ever, that the living standards of
the workers have risen substan¬

dreamed

Aerovox

The

Estate

':?

matter

and-a-half-fold inflated payrolls,
with
savings
as
they
never

Gaumont British

Speaks
Altei thejTum oi the Year

they emerge, thanks to its three-

569)

page

that

Issues

Christmas,

but owing to disagreement within

Government

Obligations.

The unions, sup-

Term

if it

were a

Real

Says Low Interest Rates Hurt Taxpayer and Penalize the j

Business and Finance

may.

acts

and

the burden

mem¬

Prices

determination
and
impa¬

originally due

to be introduced before

Short

.i,

this question
with a bitter

industrial and finan¬

circles/It

Stock

ma¬

By and large,
labor

publican

received with great

•'

out, cost

what

the Control of Investment

was

est In British
cial

Than
*

folios.

;

bership, are
ready to fight

in Provi¬

Capital
Former Conservative Party.

Bill

creased

Spon-

Industrial

of. the
greatly in¬

and That Labor Government

pose

jority

sored
Corpo¬
Already Exist for ihe Pur¬

rations

whelming

Loans.

ernment

Einzig

situation

Rise

|; Thrifty Without Benefiting the Treasury and Advocates Refunding }

ported enthu-fsiastically b y

Says Two Gov¬
Paul

extraordinary the labor
look at the well-known facts.

the

Guarant
and

Foster Industrial Strife.

Unwarranted

Tendency of Banks, etc., to Acquire Second Grade and Unsound J
Equity Issues, and to Bring About a Deterioration in Bank Port-!

Curb

how1
a

vernment

Thereby Created by Surfeiting Banks With Short Term Notes and |
Hampering Federal Reserve Functions in Controlling Unsound De- :
velopments and Inflation. Says Low Interest Rates Are Causing i

•A an

Money and Credit
Money J in Circulation ^ill Increase and

Expansion,

(Prin¬

cipally Ex¬

New York

J Prominent * ; Bank Official, Calling Attention to Progressively Lower ;
on
Government Securities, Points Out Dangers j

Flow of Capital

for

■>

•

Vice-President, Bankers Trust Company,

.•J Interest Rates
■

Prevent

;

Bill in Britain

Price One Dollar This Issue

Montreal

111

New

other

Broadway

New York 6
REctor

York

Stock

Exchange

Principal Exchangee

10 Post Office Sq,
Boston 9

2-3100

Hancock 3750

Tele. NY 1-1920

Toronto
Direct

Private

Wire

Boston

THE COMMERCIAL & FINANCIAL

518

Trading Market§ in:

United Drill & Tool A &

Former Editor American {Mercury"

^Thiy Are Vitally Important in Guirent Worltf^t>eYeloj^erits.
tions \yhether Most of Europe Shall Become an Exclusive Economic Preserve
for Russia, and Whether That Continent Will Be Restored to Economic Nor¬
malcy, Are Now Being Decided. In the Middle East Two Great Empires, the
British and the Soviet, Are Locked in Combat; While in China the Open Door j

king & KING
:

;

Dealers Ass n
Securities Dealers. Inc.
PL, N.Y. 5 HA 2-2772

York Security

New

Nat'l Ass'n of
40 Bxcbange

TELETYPE NY 1-423

BELL

Policy
Delaware Rayon

"A"

The stage

Trecker

SM^ynoweri-Hotel^;:v|

Truman

ing,

mean¬

eco¬

are

nomic

Seven-Up of Texas

prob¬

ambitions,

spheres of po¬
litical
influ¬

Stock Exchange
Broadway.N. Y. 5

Members Baltimore

colonial

FOR SALE

these

the

Curb

Telephone COrtlandt

7-40l0: *

NY 1-1548

the

in¬

the

Eugene Lyons

global security through
and through

"Chronicle" is

reopened; and until the

losing nations alike have been

per ma n e

Carrier Corp,

conditions
be

•

Bought—Sold—Qwted

York 5

3-1223

Teletype NY 1-1843

NCPONNELL&CO.
Members

New York Stock

Exchange,

New York 'Curb Exchange

Boston & Maine R. R.
■■Stamped Preferreds
■

United Piece Dye
Common

We Maintain Active

Trans.

ABIT1B1 POWER

Works

our

efforts to make it so.

to the Congress

Markets in U. S. FUNDS for

& PAPERf Common &

Preferred

DREDGING

legislation to support'the
Food and Agri¬
ana to

Hanover 2-4850
& U'27

Offerings Wanted

l|
|

Teletype NY 1-672

^Electronic Corp. of
•.
America - ; ■

Iii approving the
of

Ail Issues

58/2000,

Minneapolis & St. Louis
1 *'$$all issues
■

Gude, Winmill & Co.
Members New York Stock Exchange

establishment

DIgby 4-7060

Teletype NY 1 -0581

the
International Monetary
International Bank
Reconstruction and; Develop¬

.the Congress specifically
expressed its ^belief; that; addi|

ment,

tional measures for

{J.A,Saxton&£ovInc.
Ij TO PINE ST., N. *. 5 WHitehaU 4-4970

ments

and

cooperation

•

along

St., New York 4, N. Y.

HA 2-2400
Teletype NY 1-376-377

Detroit

Pittsburgh

St. Louis

BONDS

INVESTMENT STOCKS

Knowledge

Experience

Facilities

for Investors

••

Jefferson-Travis Corp.

• •

••

Western Union Leased Line

Common

Pacific

Stocks
Cd.

& Atlantic Telegraph Cd,

Atlantic Teleg. Co.!

Empire & Bay States Teleg. Co,
bought

sold

quoted

J G -White 6 Company
INCORPORATED

Arnhold and S. Bleichroeder

Trinity Place, N. Y. 6

Private Wires to Cleveland

Monetary

BOUGHT—SOLD—QUOTED

Security Dealers Ass'n

MUNICIPAL,

International Ocean Telegraph

Troster,Currie& Summers

Devonshire St.

INDUSTRIAL

8C
..

RAILROAD. PUBLIC UTILITY

...

International

The'

201

Southern &

Members New York Stock Exchange

Tele. NY 1-210

V.:y

:::i

Simons, Linbnrn & Co.
HAnover 2-0600

BOSTON:

Street, New York

GOVERNMENT,

international agree¬

Bought—-Sold-—Quoted

25 Broad

Members New York Stock Exchange

68 William

to- bring

States" to4 ^eek

IMANUFACTURING

Kingan & Company
Common

R. W. PRESSPRICH & CO.

international

Members N. Y.

> 5

Consolidation Coal"

1 Wall St., New York 5, ~N.

HASKELITE

Harrisburg Steel Corp.

♦Prospectus Upon Request

Teletype NY 1-609

Consolidated Film Ind.

these lines,"

NEW YORK 6, N. Y.

...

CORPORATION

Chicago, Mil., St. Paul & Pac;v

lies, hhead.

about further

and Other Principal Exchange*

Telephone BArcIay. 7-0100

ELECTRIC

■

YORK

Cayuga & Susquehanna

Administration, the extension >r
a broader form of the Reciprocal

(Continued on page 522).

AND

NEW

HAnover 2-9470

Republic Pictures

operations of the United
Nations Relief and Rehabilitation
the

United

Goodbody & Co.
115 BROADWAY

COMPANY

carr^

Agreements Act. the Congress de-^
clared it to: be, the policy .of the

Canadian Securities Dep't.

1-1126

ASSOCIATED

York Curb Exchange

WALL ST.

Teletype NY 1-1140

cooperation would be
necessary to render most effective
the operations of the Fund and
Bank.
In
the Bretton
Woods

STEEP ROCK IRON MINES

Msmben N. Y, Stock Exchange

OAS &

Members New
64

economic

MINNESOTA & ONTARIO PAPER

Security Dealers Assn.

St., N. Y; 5
Teletypes—NY

Frank CMastefsou & Co.

are

NORANDA MINES

Bell

Pfd. & Com.

Nations

of culture^ Organization

nations

which
and

under

In his message

BULOLO GOLD

Preferred

37 Wall

Bowman-Biltmore Hotels

The Congress took

are

United

for

sreenecmigotupativ
Members N. Y.

Standard Aircraft Prod.

eco¬

Fund and the

Lusccmbe Airplane

orderly

(Va.)

Common Stock

Kaiser-Frazer

Tennessee Gas

Central States Elec.

reach thte Trade Agreements Act, and the
expansion of the Export-Import
greatly desired goal, We must be
Bank.
These steps will take us
prepared at all times to face the
issues that will constantly present e;long tvey on the^^ rbad to World-iwide
security
and
prosperity.
themselves and we-must be deter¬
They should hot make iis blind,
mined to solve them, if peace is however, to the job that has not
to be permanent, we must never been done or to the work that

relax

120 BROADWAY. NFW YORK
Tel. REetor '2-7815

peace;

ment of

"prosperous

lems.

Bell

remairi
peaceful
involve a
series of
highly complex and difficult prob¬

4% Conv. Pfd.
V

Telephone: WHitehall

prosper¬

can

Capital Stock'-l^vJ;-V;^';;j>

20 Pine Street, New

ity is not a
simple matter.
The creation and maintenance

& Paper

H. G. BRUNS & CO.

System Teletype NY *1-1919

the

its-achievements in this
just cause for pride.
Among the most important of
these others steps were the ratif
fication and implementation of th^
treaty;establishing the United Na*
tions
Organization,'they ^ene^tt
field

| The | estab¬
lishment

Broadway WHitehall 4-8120

Bell

ture, and

follows:

Members New York Curb Exchange

other steps during the same
session which enlarged the strucr

President Truman

Sugar ;

Punta Alegre

Members New York Stock Exchange

many

Wash¬

state of peace

Common.'"V-.-

Edward A. Pureed & Co.

the 79th Con¬
laid this cornerstone for the

nomic

ington by the

and

Soya Corp.
Thiokol Corp.

.cooperation,t
the Bretton Woods

construction

message

from

and

gress

received

world trade

A. S. Campbell

■■

the
as

launched

not

Greater N. Y. Industries

By' enacting
Agreements Act,

text

The

genuinely

will

(Continued on page 563)

Common & Preferred

■'•

•

Electrol

economic

national

Jan.

gress

the peace

Common'

So. Advance Bag

branch offices

our

Myler Plastics

Agreements, Presf
ident Roosevelt called these prof
posals "the cornerstone for interl

30.

Everyone knows that

internal economies of the winning

recommending the approval of

Con¬

sent

reflect
hopes for economic stability.

have been

;

NY 1-1557

La.-Birmingham, Ala

Bretton Woods

fund^

execution was

attempts

Until the channels of

Byrndwi Corporation g

ap¬

essential to its

Even

Big-Power Understandings

Exchange

New York 5

Bell System Teletype

•

Differential Wheel

propriation of

world organization

Vanderhoef & Robinson
31. Nassau Street,

involve

to achieve

Common

the

and

deep-running
economic

Urges Congress
Ratify British Loaii

World Trade.
The expected message of President Harry S. Truman submitting
the Anglo-Afnerican Loan Agreement and requesting its ratification

all

—

terests.

Company

York

HAnover 2-0700

an End to Sterling Fool.
Aiding Britain to Balance
ofInternational Economic Peace in Fostering

East,

Asia

W. & J. Sloane j

New

Exchange

St., New York 4, N. V.

New Orleans,

Ex¬
Tut
SeesLikelihood of Sterling .Creditors
Its Payments and Stresses Advantages

peo¬

conflicts
of
policy in
Europe, the
Middle

400 shares

Members

Members New York Stock

25 Broad

Holds Agreement Will Set an
ample to Other Nations to Remove Trade Barriers and Will

tiveness

1-1221

ples,
■

Foreign Trade Restrictions.

the res-

ence,

WOrth 2-4230

SSS"

c■''r-flrA- '■:.

steiner, Rouse & Co.

In Message to Congress, He Tells of British" Ecohoittic Difficulties
ArisingOut ;bf War/ ana Stressesthe Need :for •Immediate Relief ■
in Order That British Government May Remove its Exchange and

lems and mo¬
tives. National

BeH Teletype N;Y.

Quoted

'>'$*'■::i••

Direct wires to

vital % dimen- ■
sions of

120

of world affairs is held^

and
diplomatic maneuvers. But behind
these, giving them their most

(All Issues)/

Kearney &

Foreign Trade and Investment Is at Issue,

Sold

by clamorous political events

Elk Horn Coal
-

Bought

Yet M

Political and Diplomatic News,

Economic Problems Are Overshadowed by

( CO., INC.

fey EUGENE LYONS

Differential Wheel
Lear Inc.

Members

P. R. MALLORY

In Current Political Decisions

American Phenolic

Established 1920

Stake

World Economic Recovery at

Wm. Simon Brewery

Thursday, January 31,. 1946

CHRONICLE

37 WALL

STREET

NEW YORK 5

ESTABLISHED 1890
Tel. HAnover

2-9300

Tele. NY 1-1815

INC.

30 Broad St.*
WHitehall

3-9200

New York 4
Teletvpe

1-515

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume 1631 Number 4460

The Oxford Case Again

The Anglo-American Loan Pact
By HON. FRED M. VINSON*

- •

»LiCHTtnsTEin

Claim THat Oxford
Opinion on Riskless Transactions
.-and Disclosure Does Not
Change Trade Custom Is

Secretary of the Treasury

519

■

AND COMPANY

Secretary Vinson, Maintaining That Loan to Britain Is Not a Gift, but
|
Erroneous. Article of Former Chairman of SEC,
;a Debt Contract, Points Out the Conditions Attached, Aside From
Now One of the Justices of Our
Supreme Court,
p Repayment at. Interest, Will Contribute; Greatly >o
Cited as Supporting" Position of Uie "Chronicle." ^
the Expansion of Our World Trade: and toi. Peace I
and General Prosperity. '' Denounces Opposition as j
Dealers Warranted in Ignoring SEC Dicta and1; :
Adhering to Existing Trade Custom. Protests May
Coming From Economic Isolationists and Defeatist
Groups Who "Are Muddying" the Water With Their
Compel Commission to Recede From Its Position.
Pet Prejudices, and Holds That Prosperity of Nation
Apologists for the Securities and Exchange Commission
and Particularly the South Is Linked to Our Export
have developed, who contend that the
Trade.
principles enunciated
Explains Sterling Area and the Dollar Pool
in the Oxford case
concerning "riskless transactions" and
as "a Mobilization for War."
'

mMM-TEX
REALIZATION CORP.

Low-Priced Oil

•

Memorandum

Speculation
Request

...

"disclosure"
Coming from Kentucky, I feel that I am
visiting my friends and neighbors when I come
to; North

All of

Carolina*

Secretary Vinson

ideals of the South,

racy built on the: finest traditions and - highest
Tonight Wb shall discuss a measure on which .the

representatives of two democratic nations reached; agreement; that
will better our chances of

establishing a gpufcd world econom/y^That
which is subject to the consideration and approval of,the
[p:.,- i•rr:. :
*An address by Secretary Vinson before the 21st Annual meeting
of the North Carolina Newspaper; Institute, Chapel Hill, N. C., on
Jan. 24, 1946.

It is because

•

The Post-War Money Supply
And Commodity Prices
*

•

;-^or

•

III Will III ■

full

ace.

Some

men-

gard

re¬

insurance

pro

sperity,

others

•

We have beeri

half

a year; but no- one would guess it
from the discussion.; We still de-

pate whether there will- be

serif

bii^risie; in. prices^egatfdlCssspf
of the fact that there has been arise;

J. GOLDWATER & CO.

Members New York Security Derters Assn.

Broadway

of clarity, we quote the following
Findings and Opinion;
"A firm which makes a
purchase to fill an order
solicited by it when it knew it did not have the securities
on hand is
making that purchase for its customers—in
/ fact and within the meaning of the act! Such a transaction
is therefore, a brokerage transaction under the stat-

--Hte;
r

' i

S-

*.%

placed itself in

•■r','C'r H

;"In transactions such

":•

SHELLMAR

'PRODUCTS

•

.y?. r

CORPORATION
■t

brokerage position and it could. hot

:choose;to act otherwise.

J. F. Reilly & Co., i«.
1

Dealers Withdraw
-j avfc.ai s^-%; rS,

danger is of

District Court Petition

i: HAnover 2-4785

Bell

others
is of

prices,
that

•>

\ *•>

* '

Banks

price

——

Brokers

The

—

pelling Registration of Salesmen and Traders.

■

talk

view

Dr. Warren at.

Thiokol Corp..

Sargent & Co.

Billings & Spencer

UiRiak&lo.m

Messrs. Kole Sind Metz have indicated it is their intention forth*

Members New York Security Dealers Assn.

170 Broadway <

are

ence

Board, New York City, Jan.

the

25 Broad Street. New York

its

Lawyers Title & Guar. Co.

.of

^Members

S Prudence Co.

latest

New York

Exchange

MeAtbers New

■

'.viwx^ •% ■

Dealers

St., New York 4, N. Y.

i'> i-uXT-h-r*- —•

Private

Wire

Boston

Public National Bank

(''.fv

1-3

r'*"

•

Common and

•

"■•'.*

"* \

•*

Co.

Trust

American Bantam Car

„

Republic Pictures

>•-'

Income 4s,

Preferred

1965

Bonds and Odd Piete$

National

'v'a^'/Vrp,i
y.B6ught-i-Sold—Quoted

7^j

■

Radiator Co.

Analyses

■

Ass'nj •>

■-

available

J *

CHICAGO 4
Harrison 2078

to dealers only

'
-

-j-j

York—Chicago—St. Louitj:

Kansas City—Los Angeles jV

C. E. Unterberg &

HoeRoseSTrsster

Teletype CQ 129

Direct Wire Service *
New

WHitehall 4-6330

Teletype NY 1-5
York Stock Exchangi

Board of Trade Bldg.lt

Dlgby 4-8640
•
y
Teletype NY 1-832. 834

Newburger, Loeb & Co.
1

issue

Security

Broadway

NEW YORK 4
C

N.Y. 5

25 Broad
-

Telephone HAnover 2-4300

STRAUSS BROS.

N. Y. Title A Mtge. Co.

Bell Teletype NTT 1-2033

DUNNE & CO.
Members New York Security Dealers Assn.

WHitehall 3-0272—Teletype NY 1-956

comments./:^1 v
read the timely

oui
"GEARED TO THE NEWS" BuU
letiri Servicevs£nr oW feqitest.
: ?

Lawyers Mortgage Co.

! r

Venezuela Syndicate

Spencer Trask & Co..

OF THE FUTURE

Bond & Mtge. Guar. Co.

Industrial

Copy

40 Wall St.,

tea Fabrics' ""
U: S. Sugar

PREFERRED STOCKS

amaz*-'

THRESHOLD

CERTIFICATES

Members New York Stock

Eastern Sugar Assoc.

YEAR"

review of factors making fbfl946
prospects:
|

TITLE COMPANY

WOrth 2-0300

CONFIX

revealed by
You will want to

Piinta Alegre Sugar

;

offerings of

Public Utility and

Teletype NY 1~84

re¬

ing# foresight

Confer¬

interested in

l °\

Bell System,

EaiSSilfliJIiil High Grade

and

Industrial

Bausch & Lomib

order in its recent

ments requiring

Round Table Discussion of Post-

National

Los Ang.

Kingait Co.

jwar Monetary Supply and Its Sig¬
nificance at the 275th meeting of
the

Haloid Corp.

proceedings on NASD by-law amend¬
registration'of salesmen, traders, etc., and also em¬
powering NASD Governors to present to their membership by-laws
controlling profits, commissions, and other charges.
|
an

year ago

DENT

1-2733-34-35

Chic.

TRADING MARKETS

Therelief-asked for in this petition was a direction that the SEC

enter

re¬

may

member our

"The

f'A

(

Concerning SEC Stymying of Review Is Headed for' Another
Tribunal^for Proceedings on rNASD -By-Law Amendments Com¬

"NEW. YORK, Jan. 30.~Despite the determined opposition of the
Securities - and ExchangeH Commission, Judge Mandelbaum of the
United States District Court for th§ Southern District of New York,
today permitted Edward A. Kole and, A. M. Metz, as attorneys for
some thirty securities dealers throughout the country, to withdraw
their pending petition.
" ■ *

Dealers

You

amaz¬

ing thing about this whole discus-

>•

(Continued' oh page 610)

Teletype,
to Boston,

Dispute

rise.

JDr. Robt. B. Warren
•'

;

infla¬

tionary
.J

System

Private Wires

a
.

■.

40 Exch. PL, New York 5, N.Y.
*

Members

Tforfc Security Dealers Assn.

■

«« s

New

with to present their petition to the Circuit Court of Appeals of the
catastrophe. the economic and social conse¬
In the specific quences of which are already seri-1 United StAtes for the Second District.i -:
J ,
area of prices,
\ pus; we still discuss whether or
They claim an order by the Commission is necessary to make
some seem to
hot inflation taxi^ bePl^eid^WlUi^
possible a review of its decision.
<
- '
believe
that out having resolved the degree of
o u r
greatest inflation that has already
fall

i«*

Prospectus On Request

Nor could it relieve Itself of the

(Continued on/page 607)..

Teteiype NY 1-1203

HAnover 2-8970

have outlined the firm

■ ...

1 New YorR 6, H. Y„

■

guarantee

•

the future tense.

in the post-war world nearly

pres¬

purpose

•

The question of the significance: of the post-war money supply is
not unlike the one'about the Lady or the Tiger.
Some regard it as
full of prom- -^l'l
sion is that it is still phrased in
ise, others as

Dye Works

Univas Lens

extracts from the Commission's

•>

point of view has been and continues

our

existing inventory is

The Institute for "Advanced Study, Princeton, N. J.

Terming t' Current Inflation Discussion - Unrealistic, - Dr. ' Warren.
Holds That We Are Already in an Advanced Phase of Monetary
Inflation^ That It Is Exerting Upward Pressure on Commodity
Prices, and That Such Pressure! Will Continue.
Disputes the ;
Widely Accepted Doctrine; That Production Is a Preventive of In*\
Ration, Maintaining That Price Control Depends on the Moneys ;
Supply, and That thcForces Causing Increased Production Sinroltaneously .Activate Savings ^and Increase Sp^oding^^ HencevH^i|
Calls for Monetary Action aS Indispensable to Adjust the Volume
of Money Outstanding.

Piece

Taylor Wharton Iron & Steel

ent, is also air wet, that we take occasion to'again-examine
the Oxfotd case.

By ROBERT WARREN*

|| United Artists
United

"riskless transaction" theory is all new
and all wrong and that the claimed need for a
differerit kind
of disclosure by a dealer, where no

p£ge 608)

new.!

say

to be that the so-called

measure,

(Continued

nothing

YORK

STREET, NEW

Telephone WHitehall 4-6551

;

these principles do not in any wise modify
the^ South are trade customs and usages in the securities
field, and are but
We are proud a reaffirmation of
principles already fixed in our national
are making in
!Securities Acts.
~

of what you are doing.
of the great forward strides you
industrial and agricultural development.
We are
proud of the great forward strides you are making in education and public welfare. We see in
North Carolina a vigorous and progressive democ-

"proud

They

are

WALL

1Established

1914

■■

J#.

Members N. Y. Security

;||§Sl|74

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-740#

Co.

Dealers Ass'n

/• Teletype: NT 1-375

Broadway, New York 6, N. Y.

Telephone BOwling Green 9-3569
Teletype NY 1-1666

THE COMMERCIAL

& FINANCIAL CHRONICLE

Thursday, January 31, 1946

Over-the-Counter Markets

ACTUAL MARKETS
IN 250
ACTIVE

ISSUES'

INDUSTRIALS

Transport!

Air Cargo

American Bantam Car
Com.

& Fid.

S. F. Bowser

Iron*
Douglas Shoe*

| Dayton Malleable
|

General Machinery

Gt. Amer. Industries*
Hartford-Empire Co.

Kaiser-Frazert

Kingan Co.

|
|

Mohawk Rubber

National Fireproofing
Pantasote Co.t

Polaroid Com.

Sheraton Corp.

Sylvania Industrial

■

Stand. Comm'I Tobacco

•

Taca Airways

^Thiokol Corp.

■. ■

United Artists

" \

Upson Corp.

U. S. Air Conditioning

j
'

Union Asbestos & Rub. f
United Drill "B"

Waltham Watch

Warren Bros. "C"

'Electronic Corp.

fLe Roi Company

fBishop & Babcock

'Simplicity Pattern
tYork

TEXTILES

Corrugating
?

Alabama Mills*

*Prospectus and Special Letter Available'

fStatistical Stpdy* or Special Letter

Textron Wrnts. & Pld
United Piece

-fAmerican Insulator
on

■

Request

FIRST COLONY CORPORATION

Dye ||

Members

New- York

Hanover 2-7793

UTILITIES

70 Pine Street
'

■■

■

COMMERCIAL and

The

Security Dealers Association

FINANCIAL CHRONICLE

New York 5

i'".Reg.' U. S. Patent Office

'!: Teletype NY. 1-2425
(Greater ;New;

York, Industries

Publishers

.
,

♦Tennessee Gas &
'

American Gas & Pow.

Transmission

Kingan & Company

A. S.

Iowa Pub. Ser. Com.
Iowa Southern Util.

Stand. Gas & El. Com.

Circular-

upon

request

Bell

New York Hanseatic Corporation
120

•; •

Thursday,

Y. Security Dealers Assn

.^Teletype: NY 1-584

♦RANDALL COMPANY (B)

-TRANSPORT C0/.:r

?§|/and

■

{♦SPORTS PRODUCTS•-

avellman engineering co.

FASHION PARK/
Descriptive

PHILIP0AREY MFG. CO.
•Circular

INC., Common

Circulars

Chicago
land,

Diroot WirtK
;

Chieagb and Phila.

Buff. 6024

request

;

Salle ~ St.(
State 0613);

111.
(Telephone:
Gardens. London, E. C., Eng-1

Company

■

■ vvcw■

-t

•

■.;}/.

second-class matter Feb-,
rpary 25, 1942, at the post office at New;
York. :N:\ Y.,, under .the Act- of March
3; 1879.
-7: ; »•
as

i Subscriptions In United
Possessions, $26.00 ,per year;
of

Canada,

Central

$27.50

Spain,

and

South
Mexico,

and
and

GreatBritain,'

peryear;

Continental Europe

States ana.
in Dominion

year;

per

America,

Cuba/$29.50

request

135

(exceptSpain), Asia,

Africa,

$31.00

per

year.

Seligman, Lubetkin & Co
•

Incorporated

Other Publication*

Record-r-Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25 yr.

Bank and Quotation

11 Broadway, New

York 4

•

Bos.2100

1-1287-1280

ENTERPRISE PHONES rVl

llartf'd till)

Monday,,

c/o Edwards & Smith-

Australia

every

Offices:

Other

{Reentered

clearings, state and. city news, etc.)

upson company

SHATTERPROOF GLASS

issue)

(complete statistical issue—market quo¬
tation
records,
corporation,'
banking*

{♦GULF ATLANTIC''

Members N. Y. Security Dealers Assn.

week

Thursday

1 Drapers'

kendall company */•

■

3!■,

-fgeheffi

Broadway
System Teletype N. Y. 1-714

'.i

■' :
1946

'Published twice

2-4SOO—120

Business Manager
.r

January

every

BROADWAY, NEW YORK 5, NEW YORK

Telephone: BArclay 7-5660

•

Established 1908

REctor

.William Dana Selbert, President

Request

J.K.Rice,Jr.&Co.

request

Members N.

fPrcspsctus Upon RequestBulletin

Tenn. Gas & Trans.t|

Analysts

Selbert,

Gelchell Mine, Inc.
*

;

Editor and Publisher

William D. Riggs,

Prospectus

Paget S'nd P. & L. Com.
'

1 1.

#Kaiser-Frazer -Corp^™^
*

Herbert"

:
.

;

Campbell Co., Inc

New York 8

REctor 2-^510 to 9578

;

Cent States Elec., Com.

piace,

25 Park

Great American Industries

William B. Dana Company

Members

Broad

New

York

Security Dealers Association

Street, New York 4

HAcoVer 2-2100

Telephone
WHitehall 3-4490

Teletype
NY 1-960

fluctuation®
remittances for

NOTE—On account of the

in the rate

of exchange,

foreign subscriptions and
must

be made in

New

advertisements

York funds.

:a,

Volume

163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

Olson, Donnerberg & Co.

AjluMing^Piogram^

Formed in St. Louis
(Special*

Dnder Private Enterprise

ST.

Financial 'Chronicle)

The

Don-

LOUIS, MO.—Olson,

nerberg & Company, Inc., has been
formed

wit]^ offices at 418 OliVe

Street, to engage in an investment
business.

Officers

Donnerberg,
T.

Olson,

Elmer

are

William

president;

Fred

vice-president;

Stockho, vice-president, and Wil¬
liam

Speakes, secretary-treas¬

All

urer.

ciated

previously

were

with

assor

Slayton & Company,

Inc.

CANADIAN

SECURITIES

5 V2 % Debentures
F

4.32-;

Due June 1,1957
at 97

and interest

Principal and interest
payable U. S. Funds

Direct Private Wire Service

COAST-TO
&%$&%*■■■■"■■■'Is'Mmff.'%
New York
Chicago - St. Louis

INIIIHIMII

.111

...II

s*7

. .

COAST

Bell

•

Kansas City

Southern Airtities$ Inc,

Harrison 2075

DIgby 4-8640

Teletype:*® U832^4;
"

•.'*%':

15 Broad Street, New York 5, TV. Y.

New York 5, N. Y.

Power &

.T""*'

«v>:V":•

V,t*

<(%>IS

eBaumf Bernheimer Co,
KANSAS CITY

Republic Pictures

Preferred.",-, N 'Ki

Class

Harvill

A'"

Quarterly dividend paid January 15, 1946

Lane Cotton Mills Corp.

Dividends paid 1945— $$.25

Soya Corp.

New Analysis

United Piece Dye Works
1014

'•
7 |\

T.J.FEIBLEMAN & CO.

Specialists in Soft Drink Stocks

•

11 Broad St..

New Orleans 12, La,

Carondelet Bid;.

Carbon Monoxide

Eliminator

Bell Tel.—NYiJ-493

'•

•'

Farrell-Birmingham

Company

;

' J": [■

*•»;""■

/'1 ■1

1?; 74

ANALYSIS ON

REQUEST

t.f

Common

.Gulf Public Service Co.

N. Y. N. H. & H.
•

■r

Consols
«• Y *

Preferred

Sugar Associates,

Missouri Pacific old

W. 1.

Tele. NY 1-2500

Consolidated Electric & Gas pfd.

Gilbert & Bennett

New York 4, N. Y.

Eastern

■

Common

PETER BARKEN

American Cyanamid

//«.-..v.;'*;: Z

Established 1922

common

preferred

old| common & preferred

Petroleum Heat &

Power Co.

Banigan & Co.
.

Established -19C4- 'J-,

Broadway, N. Y. 4

Carlisle,' Pa.

V-':j|

HAnover 2^8380
Scranton,

Pa,

;,.v.

■;Incorporated

MEMBERS N. Y. SECURITY
treet. New York .5,:

N.\Y.;

STREET

BR OAD
'l: y-

YORK 4, N. Y.
rTi?

■

HAnover 2-^600

Teletypes: NY-1-1017-18 & 1-573

Direct Wires to

jfcv-4

^Teletype: NY 1-375

7'\V

Bo, 9-4433

American Insulator

X *><:*•

Trinity Place, New York 6, N, Y.

Telephone: BOwling Green 9-7400..

Securities Co. of N. Y. 4%

Td. WHrtehall 4-6430

Telephone:

Members New Orleans Stock Exchange.

New York 4, N, Y. .."

*:iel J

32 Broadway,

;

>■

NEW

HAnover 2*9335

„,

3 0

;

ESTABLISHED

67 Wall Street, New York

qAllen & Company

request

Stand. Fruit & S/S Com. & Pfd,

JAMES M. T00LAN & CO.

America

Preferred

•

i..

Approximate selling price—33

Reda Pump
^

Associated Tel. & Tel.

teletype NY. 3*2630

Rademaker Chemical

J'. p

Preferred

Corporation

Corp.

Jeff. Lake Sulphur Com. & Pfd,

Associated Tel. & Tel.

v'-,

■

telephone: HAnover 2-6388

Telephone Bond & Share

%Telephone

and Preferred

Common

;

PANAMA COCA-COLA

Light

Tele. NY 1-2078

Telephone Bond & Share

Toronto:

Common

Pledger & Company, Inc.

Exchange
associate members N. Y,Curb Exchange

PETER MORGAN & CO.

Ca^l2Sfc;.

ST. LOUIS
members New York Stock

■

CHICAGO 4

White & Company

P Montreal

Puget Sound

Board of Trade Bldg.

Broadway

NEW YORK 4

ContiheniaC^T^

HAnorer !-«M»

Teletype NY 1-395
-

Members New York Security Dealers Ass'n

Chicago and

Airlines? Inc.

York

STRAUSS BROS.

•> 7

Soya Corporation

Tel. BA 7-5161

Los Angeles

fteW

MM. %

31 Nassau Street

WILLIAM .-ST., N. % 5

DEALERS ASSOCIATION

'BelJ„Teletype:NY..;i-897

Los

Angeles and New Orleans

THE COMMERCIAL & FINANCIAL CHRONICLE

522

Goodhue Director of

•51 W .:*r <V

Markets:

Baltimore & Ohio

t,!>11.■'

Abbott

i "/

)

the

V1 •' 1) t''!"<

president
Manhattan

^'7 r"'W'' '

[I ..Vl

:*i

■

■
.

■

•/

framiiii Urges Congress Ratify British Loan
{Continued from page 518)?.,
Fund Agreement was drafted and
t;

the

Bretton

Act

Woods

enacted

was

ppce \ the

;

their

was

long

arid

financial

Therefore,

provij
a'transition

for

made

;

which might postpone as

period

•

five

application

the

years

this

.complet4

fundamental

rule.; 7;* 7:

;
t.ryfi

i/>';■*'

will have

time of - peace,

as^ wp

decisive

the; international, trade of the

whole world,

Those

sented the United

fully-

aware

nature

them.

consideration

theyagreed

arrangements

which

••

/ '•

LUITWEILER & CO.
'

■

NEW YORK STOCK
.

••

••'

•

EXCHAMGE

••

■:

•"

■

•

F. Abbott Goodhue

•

52 WALL ST.. NEW YORK 5
PHONE

TELETYPE NY

financial

with

1-501

wartime

emergency

controls

unless

ob¬

moval of these" hindrances to the
financial and commercial relation¬

ships between nations. Now is the
time to establish postrwar mone¬

PUBLIC UTILITIES

tary and financial policies of the
United Nations: Now is the time
to
take
action
to
enable
the
United Kingdom to move witb us
toward the prompt abolition of
these restrictions for these rea¬

PRIMARY TRADING MARKETS

Amer.States Util. Com.

*CenL Ariz. tt. & Pr.

^Illinois Term. & RR

Indiana Gas & Chem.

Cent. Illinois Gas & EL

National Gas & Elec.

national business before the Con¬

Pub. Service of Colo.

lations with the United' Kingdom.

Pub. Service of Ind.

The problems involved, which are
severe but not insoluble, are di¬

Citizens Utilities

Commonwealth Gas

ConsoL E. & G. PfdL

Derby Gas & Elec.
Empire District Elec,

New York,

•'
f

"Hi.-'

7.1.

Prospectus
i

•

i-*» v; r '.YJ;

telephones

Philadelphia, Boston

and

V ^ ^ It

real

Broadway

the

re¬

war.

for

their

solution.

will implement the finan-

long period

would

the

make

Accordingly, provision

International

Monetary Fund as
to the facts regarding the balance
of
payments
position
of
the

Britain

United Kingdom. It is not to our
advantage to press for payment of
interest when payment is
impost
sible and thus force default and

crumbling

international

nomic relations.

The

eco¬

■

financial assistance

which;
people.
At the
the; United Kingdom would feceiyci
keep open a under
the agreement has made it
market for those surpluses of the
possible for the two governments
United
States
which
are
cus¬
to agree on a specific course of
tomarily exported, to the United
action which in a short period of
Kingdom.;
These are important
time will result in the removal
short-term purposes of the credit.
of emergency controls lover for-*
But the financial agreement is
eign exchange and discriminatory
much more than a credit.
Let me
import restrictions, and the* reesrepeat.
Its most important purt
tablishment of peacetime prac¬
pose from our point of view is to
tices
designed to promote the
cause the removal of emergency
recovery of /world trade, Brita^ri
controls exercised by the United
has agreed to abolish the so-called
Kingdom over its international
"Sterling area dollar pool". She
transactions; far
more
speedily has
agreed to give up most of her
that; is required by the Bretton
rights during the transition period
Woods Agreements;
The finan¬
provided for In the International
cial agreement will enable the
Monetary Fund Agreement and
United, Kingdom, .through
the thus to abandon controls over
prompt' 'relaxatlo'n^ 'of exchange
foreign exchange which she would
restrictions and
discrimination
otherwise be permitted- by the
to move side by side with the
terpis of that agreement to co4*j
of

British

the

time

same

will

United States toward the

goal

expanded

common

world

tinue

trade

for

considerable

period

of time. In addition to the direct

Hartford.

*V. S. SUGAR

stimulus to Anglo-American trade
there will be the added benefits

BENDIX HOME

Diversified

derived from the abiUty of other?
nations to relax their restrictions
once

APPLIANCES

Investment

TWX-NY 1-1950

**KAISER-FRAZER

TWX-BS 208

'LIBERTY. MAGAZINE

A SERIES OF

have resulted from her large: ex-v

TENNESSEE GAS &

STOCKS, INC.

Another > troublesome financial:
problem which has been fully and
frankly discussed by the two na-;
tions is. that'of the sterling lia-;
bilities of Great Britain which
;

CORPORATION

Fund
NEW YORK

the United Kingdom has led

the way.

LAfayette 3300

TRANSMISSION CO.

Getchell Mine, hi€.
"-

which

benefits which will flow from this

Devonshire St., Boston

Bought

under-

waiver of
interest by the U. S. Government
after
a
certification
by
the

essential to the life and worlc

are

New York 5

;

COrtlandt 7-9400

basis

gress

time

possible.

connect

J. Arthur Warner & Co.
120

financial

is my earnest hope that the Con¬

request,

upon

consequences

inter¬

matters of great ur¬
and I -believe that the fi^
nancial agreement which I am
transmitting herewith furnishes a

Standard G. & E. Com.

direct private

our

gency

*Tenn. Gas & Trans.

>
•

own

order

They; are

*Gulf Public Service

Our

rect

should be

gress

t Sioux City Gas & Elec.
SoVestern Pub. Serv.

Federal Water & Gas 7

The

sons.

Puget Sound Pr. & Lt
Republic Natural Gas

Delaware Pr. & Lt.

All others traded

the agreement/

has been made for the

in accordance with the terms set

forth in

neither

payment of interest on such a
large amount difficult if pot im¬

working capital. needs this credit and she needs it
Company, was recently elected a It is apparent that, in the case now.
It will assist her to meet
of
a
director of the Baltimore & Ohio
principal member of the the expected deficit in her bal¬
International Monetary Fund, we ance of payments during the next
Railway Company.
can ill afford to wait for the pe¬
six years.
It will enable her to
riod
permitted by the Bretton buy from the world the supplies
Woods Agreements for the re¬ of food and raw materials which

difficult

porarily during such
of

additional

tains

2-8820

HANOVER

of its

many

;

nor

are

were

MEMBERS

period

of the credit. We have
recognized
that- conditions may exist fern-*

responsible for this
The financial agreement will
period of1 grace are verified' by by its terms come into operatiori
the facts. The most important pf only after the Congress has made
these facts
is * that the United available the funds necessary to
Kingdom as a .result of the ' War extend to the United Kingdom
must continue for a long period the line of credit of
$3.75 billion

payments will

There is one new concept,'
however, embodied in the terms,

each other and with the world.

relations

those

over

terms

unusual

stpnd.

prove a solid foun¬
dation for the successful conduct

economic

credit, which: will

These

years.

opinion will
our

and

continue '

upon

which

'' f

interest

problems before
long and careful

After

were

of - the^ fundamental

the

line of

dom will be. obligated to
begin
repayment of the principal with

who repre¬

Kingdom

tary Fund, we find that the fearS

The

doing,

produc¬

be extended to the United
Kingf
dom under the agreement
may be
drawn Upon until: the end of 1951'.
At that time • the United
King¬

influence

yapidly; proceed wjth the prganit
?aUon of ,thp International Mone?

BENDIX,

sx.g

many years to-come.»

the

Now in

;

■

ing every where.

much to say that

agreement now transmitted
will set the course of American

f undamental

nonrdiscriminationir)

monetary

sion

(B4nks, Brokers & Uealers only)

eg It is not too

means; expanded

and employV
ment, and rising standards of liv¬

and British" economic relations for

transactions.

Wellman Engineering

war.

which

the

rule

Transmission

;

during the

tion,, consumption

Both recognized that the finan¬
cial condition of some countries

ftpply ;at

Tennessee Gas &

•7;- • -4

Agreement^

cial agreement as speedily as: is
consistent with careful legislative
consideration.
-,
' L

resulting from 7 the war, ? might
make
impossible- .for them? tp

Simplex Paper
\

Goodhue,

Bank

the

i'•Mfii.-t''ty'h•''A- v':''

'»:•:

Thursday, January 31, 1946

Philippine Gold Shares

Bought—Sold—Quoted
*Circular
*

Sold—Quoted

United Paracale

Request

Prospectus on Request;.

Masbate Consolidated

■

San Mauricio

Balatoc

Benguet

HorRsseSIrsster
ESTABLISHED

I Prospectus from your Investment Dealer or

1914

HUGH W. LONG & CO.

Trinity Place, New York 6, N. Y.

•Telephone: BOwling Green; £-7400 \

J. F.
|

7/..Members
New York Security Dealers Assn.

;Jeletype: NJ 1-375

48 wall STREET '

HAhqVer *2-4785

y-y

y " Bell System Teletype;

634 SO. SPRING ST.

•

NEW YORK 5

; K0iD-H0LD^^

BlANUFACTUIUp (piPANI^

Manufacturer of Electric Refrigeration Equipment
^ low priced speculation
.

7 '

•

Analysis upQti request

40 Exch. PI.; New York 5, N; Y»

INCORPORATED
.

Reilly & Co., inc.

Mindanao Mother Lode

LOS ANGELES U

Private

F. BLEIBTREU & Co., Inc.

79 Wall St., New York 5, N.

NV1-2733-34-3S

Wires

Telephone HAnover

7;- :^.*V• Boston, Chicago & Los Angeles

,"r; i:

Over

;

g- Puts

Getchell

;7;/v.'7v?■

PROSPECTUS ON BEQUEST

Mining Inc.

FRANKLIN COUNTY COAL

;

6k Calls

The

Bought-—Sold—Quoted <'/ti

REQUEST

:,s--

''.;T
\

CO., Inc.

Members N. Y. Security Dealers Ass'n

V
111 BKOADWAY, NEW YORK 6, N. Y.X7
7
BArclay 7-0570
•
7
y:y7:;-.
r - •
: NY 1-1026

Dealers Assn., Inc.

HARRISON & SCHULTZ

All

64 Wall St., New York 5

options
Stock

■'

L-. *"

"4-r'l

(.t'

v».V.

*>,?'.*

';y> *•

Kurt Werner & Go.

guaranteed I by
Exch.

;.;7;-;:*77'

:•

EST.

i93i

Members New. York Security

Dealers Asfin,

Members
V

,J >

Phone JfiAnover 2-7872 Tele. NY 1-621

Thomas# Haab & Bolts
Members Put & Call Brokers &

F. H. KOLLER &

' '*.r

I*. -V--*'

Counter

Securities

;

Bought—Sold—Quoted

;

COMMON
CIRCULAR ON

2-86814

39 Broadway, New York 6?

BROADWAY, NEW YORK 4
Tel. BO. 9-8470

Telephone; DIgby 4-6494

tVolume 163

Number 4460

best,

penditures abroad during the war.
In the financial
agreement a the
British Government has under¬

with

in
cooperation
United;;States to bring
successful conclusion inter¬
endeavors

Brookisieyer Joins
Goldman, Sachs & Co.

the

national

taken to adjust and \settle these
obligations out of resources other t
than the American credit and has
butlihed its intentions* with res¬

THE: COMMERCIAL & FINANCIAL CHRONICLE

discussions 1 based

I ri-P r
implementation

The

upon

4*\

j X(Special;- t'd; Ths' Financial Chronict,®) 3
j ST.LOUIS,; MO.—Edward H.
Brpckmeyer, has- become asso-

th#

financial agreement will be a great
pect to.their settlement.;Our, con¬ : contribution to the ^establishment
cern ih this;connection is two-fold, of a permanent state' of peace and

In" the first place

we want other
countries which are in a position

to do so, to grant assistance to the
United
Kingdom5 - within
their
.

Those5 which

means.

sterling balances

hold

can

large
: by

thi$

nation

and

Trust Co.1;

the 5 United

will

of these balances

not,-': discriminate

agreement contains

specific

un¬

dertaking by the Government

the United Kingdom that no such
discrimination shall result from

The financial

-»

mitted

herewith

that

support; to the proposals for
pansion of world .trade and

ex¬
emr

ployment Which the United States
has: recently put forward as a
basis for internation discussions

Formed ia

to conduct

believed

promptly.

the forWooten • & Co.,

R, B.
an investment securi-

Municipal Bond & Investment

BARRY S. TRUMAN,
if"*!*

'f%

X\'J:

';.

•

I5 l(

announce

'/•

'"t

■

:l
f.
j

General Partners

;

■

!S'l r^-'

" r

■

and have resumed their duties

' ■v' • s>!

Lamson Bros.

active duty in the U. S. Navy

;
5

Co.

>A a

Members

141 W. JACKSON

pleased to

are

V|1 '

pleased to

are

.v.

by the United Nations. In the joint
statement- on commercial
policy
published at the same time as the
financial agreement, the United
Kingdom has undertaken to sup¬
port these propbsals and to use its

||gl |H have been released from

en-- ties business from offices in the
acted the Bretton Woods Agree¬ Commerce
Title
Building. Mr.
ments act; I urge that i Congress
WTooten was formerly President !
act on the financial agreement

and

Roger B.

mation

Memphis

MEMPHIS, TENN.

agreements will be fully effective

■taht

■

Wooten; has ranounced

in¬

wise rules of the 'Bretton Woods
than

•V*'' ^

IXE.F;THOMPsdN,jR.,U. S.N.IL

stead ; oi;' "economic
controversy
between the two countries, the

sooner

Lt. Cdr.w. M. Washburn,u. s.n.W

Rr B. Wooten & Co.

means

also possible^ when thfe Congress,

agreement

possible for the United
Kingdom to give wholehearted

much

these settlements.
makes

•.

The; financial agreement trans¬

r against
The:;, financial

American, trade.

begun.

scaling them down. .In * the, secbnd Kingdom i to 0 carry: forward the
place, we Want to be certain that Work: whiph has been so well
the liquidation

ciafed with Goldman, Sachs & Co., V
prosperity., We are all aware of Boatmen's Bank Building.
He
the dangers inherent in unchecked
was
"formerly in charge of the
economic rivalry j and economic
warfare; i These5; dangers can be government and municipal bond
eliniibated -by the firm resolution trading-' at the Mississippi Valley

of Principal Exchanges

BLVD.

CHICAGO 4

♦

WABASH 2400

•

that

announce

MR. Everett F. Wendler
'''and(^3k€''

Curb and Unlisted
Securities

Mr.

■

'•

«.

Jack A. Jossem
v

hai'c been released from active duty
MICHAEL HEANEY, Mgr.
WALTER KANE, Asst. Mgr.

joined

our

1;"

f HJewYorfc 6
Teletype NY 1-1610

DIgby 4-3122

.....

*•

;

;•

Milcliell fvCompunij

;

to our

and has been

Exchange H

•

.* .'v'^v-'

,r,-

-»,

Bell Teletype NY- 1-1227

Tel. WOrth 2-4230

Billings & Spencer

•

organization

appointed

Manager of our-

]

Efe; .?2°'?pOA,PwAX.., lifi NEW.YORK 5, N'; y.

■®4£ riskSW

•??

■

Mem bers Baltimore Stock

ACTIVE MARKETS:

to announce that

has returned

Chicago^Stock Exchange

Broadway

pleased

FRANCIS J, CUNNINGHAM

trading department.

Member* New York Curb
Exchange

ate

Captain A.U.S.

Joseph McManus & Co.
;

■

with the armed forces and have

.J?; .5

Iristi tutional Trading Department

^
^ •-

v,"!

■

Citizens Utilities
.

,.,

„

Common Vf

KIDDER, PEABODY fi*CO.

Great American Industries
Common"'"

IK ')

FOUNDER 1865

v,^s
•

.*»,

•

Klngan Co* * $
Common

\"-i

■

announce

Pfd.

•

■

•

the opening of a

' '>

-'5

ft'

»*•

\, ^':tjtCembers ZHjzv, Tork arid 'Boston Stoch Exchanges

Soya Corp. of America

^ f

MUNICIPAL BONDi DEPARTMENT

Wall Street

boston

New York

s io

philadelphia-

;

East 4$th St.
chicago

•

<r>

fv'

;

under the management

•

Broadway, N.Y. 6

at:-

ofej,fl-

DIgby 4-2370

RICHARD A. CUNNINGHAM

Teletype NY 1-1942

recently released from

|We are pleased to announce that
I. EDWARD J. ENRIGHT
is

now

associated with

Finance

?«$• ST.;

n: •

:'•-•••

Department, A.U.S.
•

i \

■

WrtteX&XlVAz

■'«

aye-pleased to

our

;

•

J-G-White 6 Company

Jphn

trading department

has been admitted
37 WALL STREET

NEW TORE 5

announce

•

Scrimgeoytr}
'*/•'*'V-m "k.

*-*'»:

as a

..."

that

|
*'f "*

(
"

partner-in out fim.

ESTABLISHED 1890

DUNNE & CO.

Telephone'- HAnover 2-9300

Teletype:

N11-1815

Members New York Security Dealers Assn.

Established

Broad St.# How York A# N. Y.

WHitehall

3-0272—-Teletype NY 1-936
We

Private Wire to> Boston

|d08

120Broadway
are

pleased to

announce

that

william frankel
BURMA CORP.
has

I desire to get the names andad-

dresses of
;'

the holders of the

Active Trading Markets in

joined

Guar- i

anty Trust Company American De¬
pository Receipts* for the stock of

our
.

overthecouMentrading ^department

Hajoca Corporation, Com.
*

3' the,Burma Corporation, v v! :
By working-together, it J Is be-'
illeved that the American'holders>
\v.can secure for their Receipts
con ¬
siderably more than the present
Curb price.
k'X/'r. »-v • , *.i'*V5..

National Radiator Co., Com,

Puget Sound Power & Light, Com

Arthur

' '

;

-v'l'.
New

York

Madras, India Correspondent

.<Howard G. Peterson
*

Babson

•

Care American Consulate

Room

768■;*«* 1775

•

^emiers

,•

•

NEW YORK

Laurence M. Marks & Co.

STOCK EXCHANGE

;

NEW YORK CUR* EXCHANGE

Broadway

Member? New York Stock

Exchange

New York City. CI 6-0650.
.:'
♦

»Tftese-receipts have*no vote and-hence there will be no,, call, for

proxies'.\SX •' ;t"-'"'H

Exchange Place

49 Wall
;

New Yprk

Street, New York 5, New York

Telephone HAnover 2-9500

Teletype N.Y. 1-344

THE COMMERCIAL

Cb,;v

Rejoins Robinson &

(Special to The Financial Chronicle)

CONN.—Frank E.
;has rejoined Henry C.

HARTFORD,
Cilento

Robinson

Inc.,

Co.,

U. S.

Street, aftey serving in the

Anny.\

BALTIMORE

■

BALTIMORE, MD,

BRIDGEPORT, CONN,
the

staff of Amott,

150 Broadway, New York
City. In the past he was with G.
Colby & Co.
»

j
'

■'

(Special

has

STEIN BROS. <Sf BOYCE

Building, after serv¬
J

Teletype BA S9S

Bell

Reda

2-8327

Rector

Telephone

York

Iloran &

Request,

1529 Walnut Street,

Dwight Manufacturing Company

Philadelphia 2

•

Pittsburgh, Pa.

DES MOINES

N. Y.

Metal & Thermit

INCORPORATED

Southern Advance
Iowa Power & Light Co.

Valley Mould & Iron

Bag & Paper Co.

Preferred#

Woodward Governor

ago high-grade
stocks sold
on

year

common

Parker Appliances

United Light & Rys.

Common

Boston Edison' ^

Common Stock

DES

.Phone 4-7159

BOENNING & CO.

IOWA

Bell Tele. DM 184

Pont, Homsey Co.
BOSTON 9,

Capitol

'•

DETROIT
■£r?y-t

•

;

r'.s&js*

<•

1",

ly'"*•**

rffU

l
j

'.*•

Reports furnished on request
.

■

...

Invited

Mills pfd. & A

Incorporated

Investment
49 Federal

Tel. HUB. 0810

Philadelphia
Easton

{

Buhl Bldg.)

Cadillac 5752

Teletype BS 189

New York Tel.

CAnal 6-3667

Washington

Members Detroit Stock Exchange

Securities

St., Boston 10, Mass.

Detroit 26

Warner ,Co. common

H. M.

Byllesby & Company

PHILADELPHIA OFFICE

Tele. DE 507

Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717

Allentown

4.5

available

are

now

the

"utility

stores,

5.2

5.0

4.8

Electric

—

Service

Public

With Thomas Dar$t & Co.

5.4

Indiana

Edison—

(Special to Thb Financial Chronicle)

WILMINGTON, N.

4.2

5.2

Calif.

Southern

4.9

5,2%

-Average

Thomas

few

have

issues

already

yield ground, but
fexplained partly by ex¬
pectations
of higher
dividends

bf bkhri into low

Greens¬

Building,

boro, N. C.

—ii

n*i

based

savings.

tax

oil

Edison, Pacific G. &
E; and Indianapolis P, & L. have
been
tdxes.

Rejoins Bankers Sees. Cd.

payipg heavy excess profits
However, "old line" stocks

Chronicle)

(Special to The Financial

(Southern

California

Robert H.
hai rejoined Bahkers* Se-

ST. LOUIS, MO.
Gledhill
cuiities

Con. Gas of

—

Olive

506

Company,

Bait., Common¬ Street, after
wealth Edison and Duke Power Army.

Company,

Darst

Southeastern
A

Ci^-John C.

Smith has been added to the staff

serving in the U. S.

Tele. PH 73

GRAND RAPIDS

Harrisburg
' Portland
■■■■■■■
' •■■■■

PUBLIC UTILITY STOCKS
t.;"''

Michigan Markets

trading Markets

We maintain an active market in the stocks of

Retail Distributors

many

Boston Edison

Dependable

Boston.& Maine Prior Pfd.

?
1

New

—

Accurate

unlisted

Inquiries Invited

securities

England Lime Common

public utility companies and through

the facilities of bur direct
f

system
1

are

private wire

especially equipped to

trade in those markets where
our

various

offices

are

Submarine Signal
:

white, noble & co.
Members Detroit Stock Exchange

Dayton Haigney & Company

GRAND RAPIDS

MICH. TRUST BLDG.

75 Federal Street, Boston 10

Phone 94336

Private New York Telephone
REctor 2-5035

Paine, Webber, Jackson & Curtis
Allan N.

Lewis Tower

Teletype GR 184

LOUISVILLE

Young & Co.

established

i87«

•''

vi'v:

Bldg., J5th & Locust Sts.

Philadelphia 2, Pa. PENnypacker 1750

ST. LOUIS

East Coast Public Service 4s 1948

Suggest

American Turf Ass'n

Common Class "A"
•

Book value—around $18.

'•

Consolidated Grocers common

Girdler Corporation

Capacity—900,000 barrels annually.

•

Old Dominion Power 5s 1951

American Air Filter

Oregon Portland Cement Co.
(

Hallicrafters Company com.

Merchants Distilling Co.

Good
earnings
all
through
war
period.
•'
Company would benefit substantial¬
ly from tax reduction.
Oregon's
huge
highway
program
ready to start.
" "*
r

;

>
.

)

f
v

[

INVESTMENT SECURITIES

Winn & Lovett Grocery
5 b® Olive

street

Hydraulic Press Manufacturing com.

Market about 12

)'.■%

Louisville Gas Pref,

Circular available

:'.[>V

H BANKERS BOND ^

LERNER & CO.
10

POST

OFFICE

BOSTON

Tel. HUB

1990

v.;

1st

SQUARE'

MASS.

Teletype BS 69

In corpora ted

;

Long Distance 238-9

Gilbert J. Posti.ey & Co.

vr'

Floor, Kentucky Home Life Bldg.

y:V LOUISVILLE 2, KENTUCKY

St.LouisI.Mo

: i

Eell Tele. LS 186

Members St.

Louis Stock

Exchange

4.9

Philadelphia Electric

re¬

in the

families

growth" may again become
important market factor.

5.5

Indianapolis Pwr. & Lt.
Pacific Gas; & Elec.—*.—

wartime

some

Many

income brackets

4.8

Light-

this

Vinco Corp.

& Dolphyn
;.J'

5.2

Light-

Lighting
Idaho Power __2—

John Irving Shoe common

Mercier, McDowell

Power

Hartford

Central Steel & Wire

5.9

—

Houston

Empire Steel Corp. com.

•

speculation

H An attractive

Botany Worsted

4Vs
J

5.0
—

Edison

Detroit

Philadelphia Co. common

Manufacturing Corp.

"j'"

Dealer Inquiries

Shelter

Pressiirelube, Inc.
^

Power

Delaware

PH 30

■

Electromaster, Inc.

i) '

Duke

7-1202

COrtlandt

1
(Balt.)_

Edison

Consolidated Gas

MASS.
Teletype BS 424

4330

Pennypacker 8200

Private Phone to N. Y. C.

Bank Building

Shawmut

Edison—

freed

lowest

potential customers for the first
time. When the present period of
labor troubles ends, new building
gets under way, and electric house¬
hold
appliances become freely-

5.3

4.8

Consolidated

Philadelphia 3

1606 Walnut St.,

now

5.7

Connecticut Power

BUILDING

MOINES

has eased.-

strictions.
;

6.0

Serv.

Vermont

Central

Commonwealth

EQUITABLE

residential and commercial usage,

Jan;,

5.7

Central Hudson Gas & El.

5-"'

not eventually

may

pressure
v

about

5.1%

Elec. & Gas__

111.

Central

Cleveland Electrical Ilium.

utility

March/'

Grinnell Corp.

Rath'Packing Co*
•'■■■■■

investors

1945

Preferred*:

Waltham Watch Company

Motors
3.9 %,J General
3.3%, Johns Manville 2.2%,
International. Harvester 3.2%, etc.
Considering the further growth
possibilities of the electric light
and power business, and the many
long-established dividend records,
there seems no good reason why

-Approx. Yield-—

Common Stock

;

General
Foods

regards the growth factor,
the electric industry renriains out¬
5V4% basis, while at present they
standing. Losses of wartime in¬
are
approaching a 4% basis,. as dustrial business are being sub¬
indicated in
the accompanying
stantially offset, so far as rev¬
listf^
enues are concerned, by increased
1.

WHEELOCK & CUMMINS

Naumkeag Steam Cotton

year's

For

Electric

willing to buy high-grade utilities
on a 3j/2% basis, or perhaps even
are
Major "market obstacles
call prices. Paced by the govern¬ lower,
ment bond market, the yields on during the past decade have been
high taxes, and federal regulation
highest grade utility bonds have
and criticism. Taxes are now be¬
dropped below the 2.50% level,
substantially
reduced
for
ing
and best-grade preferreds
may
many companies, and regulatory
soon break the 3.50% level.

Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253
1; ,
Private Wire System between
Philadelphia, New York and Los Angeles
New York

;

pre¬

highest-grade industrial
example,
General
currently yields
3.3%,

issues.

the . preferred issues)
already selling well over their

Angeles Stock Exchanges

Los

Teletype CI 347

.'s

bonds and

that

ticularly

Philadelphia and

Members New York,

;

Many:;: utility

big refunding program, have ad¬
vanced in; many cases from 3 to
5 points, and some of them (par*

BUCKLEY BROTHERS

CINCINNATI 2

Johnson Automatics Inc.

ferred stocks, issued in last

Pump Co.

Memos

Griscliy

UNION TRUST BLDG.

Anchorage Homes "A"

an official "easy money" policy, both bond and stock markets
traveling;, upwards ; together, *and the threat of commodity in¬ still yield a little better than 4%.
flation has not had more than an This yield remains higher than
are

last Friday's trading,
term government 2 % s
moving the full daily limit of a

;

bull

with

with long

Co.

After World

fco pay 7% or 8% for bond money; But thus far, with the Federal Gov*
ernment continuing to play a major role in the financial picture and

quarter point.

American Pulley

stocks and commodities simultaneously.

had very high interest rates—some industrial corporations had

occasional, momentary effect on
bond prices.
Federal and New
York City bonds went to record

:•

Midland Utilities

CALVERT ST., BALTIMORE

associated

highs

SECURITIES

Stock
leading exchanges

York & Baltimore

Exchanges and other

New

become

PHILADELPHIA

CINCINNATI

Chronicle)

COLO —William

Chemical

Noxzema

S S.

Financial

The

ing in the U. S. Army, v

Members New

tional Bank^

CINCINNATI

•...Common

i DENVER,

War I

4% Yield Basis?

old-fashioned economics to enjoy

It is somewhat contrary to

market in bonds,

Joins Otis & Company

■

Will Good Utility Equities Break
.

With Otis & Company, First Na¬

Drug
wv'fe

Emerson

•

■

Baker & Co.,

Inc.,

Heintze

leading Exchanges.

Davis Coal & Coke

position as a general partner

6 South
Calvert St., members of the New
York Stock Exchange arid other

Terminal

i,v

Man¬

H. Tishler has been added to

in Stein Bros. & Boyce,

Bay way

—

uel

Evens^ Brigadier General, United
States 'i Army, has been released
from active duty and has resumed
his

Mj'V- (Special to The Financial Chronicle)

Henry C.

—

FINANCIAL CHRONICLE

With Ammott, Baker & Co.

Henry Evans Returns
To Stein Bros. Boyce

Lewis

BROADWAY,
Direct

NEW YORK 6, N.

Wire td Chicago

■'

Volume
>2;j'

■

163 / Number

/,•;

4460

;i.

v**\ .»

.•

THE COMMERCIAL
.vv. v:<:"

•

-ltt\

.?;•

•

beginnings of history when

The CIO's International Aims
hy& By JAMES B. CAREY
Secretary-Treasurer, Congress of Industrial Organizations.

did

■

Relations.

Traces the Steps

Labor has Pursued Toward

World

Federation of Organized Workers, and Toward Overall Internation¬

alism at Dumbarton Oaks and San Francisco. He Defines the Aims
of the ClO-Sponsored World Federation of Trade Unions, With
66 Million Workers. Urges the Necessity for a Better Understand¬

ing of the People of the Soviet, Which the CIO is

Furthering

need

with

outside
-

as the Great Objective of the
Unions' Foreign Policy. Holds the Workers, Rather Than the Po¬
litical Diplomats, Must Assume Our Responsibilities in International

not

selves

Mr. Carey Cites World Citizenship

(

FINANCIAL CHRONICLE

limited

com¬

table

the

economic

too

For Better

Inter-American

Relations, He Advocates Extension of the Interna¬
tional Training Administration With Its Interchange of Industrial

who

thai the peoples; of
Pennsylvania should
even attempt; to settle a
possible
boundary dispute by resort to
guns, planes and bombs. " '
It always strikes me with great

In these days when the topic df

eign relations
about

Labor's
I

tion, must play
a major role if
we are

from others

When I
labor, I do

not

mean

bor in the

stricted

la¬
re¬

enrolled

ions

of
or

other.

tions

an-

r
who

their hands and brains to
a

secure

living from the bounty of the

earth.

i,;//-.:

him

;

nature

had

drafts

confer

Russia.

i program:

benefits

alone.

aspirations of the people of
Canada are exactly the same as
hopes and aspirations of the

the

nation

be considered

can

„

Trading Markets1

!■>'

-jJ;

National Service Co., $3 preferred

cesses,

National

''V1*

Huntingdon & Broad Top Mt, RR. & Coal Co.;

■

not forget

Red

Rock

Bottling Co. of Cleveland

Such

in¬
its

vicious struggle iri the
the human

race;

FRANK C.

MOORE

CO.

42 BROADWAY, NEW YORK 4, N. Y.

history of

Telephone—WHitehall 3-9784-5-6

;

Teletype-NY *1-2628

The real issue

a
policy
Our pro¬

ACTIVELY TRADED
'

Pennsylvania Securities

/-UTICA, N.Y.

^ALBANY, NT.

^-BOSTON,

AMERICAN WINDOW GLASS
*D.:L, CLARK
/

■-NEW YORK N.Y.

^NASHVILLE, Tenn.
^ATLANTA, Ga.
""-MIAMI, Fla.
"

COMMERCIAL

JOSEPH

BREWING

K. PORTER

RENNF.R

HORNE

H. H,

*JEANNETTE GLASS PFD.

FOUNDRY

;;

BREWING

ROBERTSON

ROCKWELL

MACKINTOSH HEMPHILL

TRUST

PITTSBURGH BREWING

^PITTSBURGH STEEL

FIRST NATIONAL BANK
-FORT PITT

INDUSTRIES

PEOPLES PITTSBURGH

DUQUESNEi'BREWING

^PITTSBURGH, Pa.
"BALTIMORE, Md.

PENNSYLVANIA

CONTINENTAL

-DEVONIAN OIL

•PHILADELPHIA, Pa.

^LYNCHBURG, Ya.
^RALEIGH, N.C.

^NATIONAL RADIATOR

Mass.

■WORCESTER, Mass.
—HARTFORD, Conn.

NEW ORLEANS, La-

MFG.

■;

*SAN TOY MINING
*U,? S. GLASS

f McKiNNEY MFG.
MOUNTAIN FUEL SUPPLY

"VANADIUM ALLOYS STEEL

NATIONAL BRONZE

WASHINGTON STEEL

Complete Research Facilities
^

lor Dealers

develop

new

business,

tvei

the- Pittsburgh

Stock Exchange

...

use

DIRECT PRIVATE WIRE

ar-

dealers in the 31 cities shown above,

allowing tliem to reproduce and

Reed, Lear & Co.

their clients

have,special

rangemcnts with

*Lhted

throughout the Country

O HELP INVESTMENT FIRMS serve

NEW YORK :; '

give specific investment conclusions and

.;;

——PITTSBURGH

HAnover 2-2823

exclusively the

complete Shields Research Service* The Shields

ATlantic 0880

re-

recom¬

mendations, enabling security houses to answer the

by investors for practical, profitable guidance.

Other cities

are

open to

IXSl'RANCE

STOCKS

additional dealer-subscribers.

REAL ESTATE

MUNICIPAL

INDUSTRIAL

SECURITIES

it Wall Street
CHICAGO

NEW YOBK

/CLEVELAND, Ohio

GALVESTON, Texas—

Oklahoma Interstate Mining, common
-

time let

common

/ROCHESTER, N.Y.

ANGELES, Cal.-"
MEMPHIS, Tenn.-—'
TUCSON, Alii—
DALLAS, Texas——
SAN ANTONIO, Texas

demand

Service .'Co., common'

Huntingdon & Broad Top Mt. RR. & Coal Co., preferred

—BUFFALO, N. Y.

LOS

ports

i ] ■;

Huntingdon & Broad Top Mt. RR., & Coal Co.; 5s, 1940

and in many other fields.
same

people—just plain,
ordinary people,
ix There was a time back in the

CINCINNATI, Ohio—
ST. LOUIS, Mo.——

v
-

citizen

Western

and

of the other, with no detriment to

common,

SAN FRANCISCO, Cal.-

people in the United States. In a :
large measure the citizen of either

grams are drafted for the benefit

CHICAGO,
JOUET.lt
DENVER, CoL—

as?

anything that the hopes

and

and welfare of

MILWAUKEE, Wit^
SEATTLE, Wash.^
MINNEAPOLIS, Minn.DETROIT, Mich.-

in-1
thei

endeav¬

to free him when she gave
intelligence and ability to

X'";

in
well

would be self-defeating.

with

work

members

„

labor, all
being

never

tended

mean

human

which

from

ored

that 81 years ago this very day
all questions
bearing on their welfare and the Ave, were entering the last days of
welfare of their fellow men, The Whut had been up until that, time,
brutal,
bloody
and
Congress of Industrial Organiza¬ the ;most

ipress their views

un-

one

sort
all

WMBMB AsJgf

I BBA-10
who'Vp

labor

know

bodies

Man

At the

of the CIO Delegation to

sense

meaning
only those
workers

—

sense.

{

the \

are

and. destruction. ;

peace.
say

world
the 3,000
miles of
imaginary
line & between
the
United States: and Canada--there

war

its

In-

American Federation of Labor
We know

who, work for'a'liv¬
, -.:
ing.
Their ,union does, however, reason..1
give. them a medium by which | As Americans we need not be
Smug on" this point We may boast
and.; through which they can, exr
of pur progress in recognition of
human rights, in education,-in dei
j
Mr. Carey recently, returned
ifroni Europe and was Chairman velopment of technological pro¬

to have

world

old

one

the; Congress of
Organizations and

men.

join unions for their ^mutual de¬
fense and protection: on si specific
job does not differentiate /them

estima¬

our

The fact that

was

this
that 1

both

dustrial

labor

that along the long¬
est international boundary line in

through the
unions

•

brutality
his allegiance to the form of
gov- ?
rejected is neither fort, nor trench nor ernment that he himself
prefers.-;
they dignity of work imposed by
jartillery position.;
No fleets of
(Continued on page 602)
nature, and .chose the degrada¬
.and, women
tion -of being a brute—-a handicap

the moment js likely to be foranother, it seems appropriate to write

Foreign
Pol¬
icy which, in

the

over

part

come

labor

ternational

the

just

The result

another, with

real

Who
after

greater

Ohio

and

games

people and they know i

us?The

make

significance

lived

Canadian

formation

Be that

war

the expanses
of the Great Lakes.
To what can 1,
this condition be attributed other
than the fact that we know the

knowledge has

horizon; by: the> application : of
force,; rather than v through be¬
coming acquainted with.the folks
horizon,;

525

conceivable

instances to widen the

many

men,

play

another

become acquainted.

used, hoy/ever, in far

was

honest

may, the horizon; vvas eventually
widened.
Today it is entirely in¬

achieved mainly through the use
of his intelligence, that widened
the horizon.
-That same intelli¬
gence

warships
one

one another and had hot. tried to*

sense;

rival
with

was

matter of cold fact had not known

■

iri

nothing that could not have been
accomplished at the negotiation

largely self-contained on a com¬
munity basis, and the struggle to
wrest a living from the earth was
so ■ intense that, isolationism : mi
ght
possibly have had an excuse.
It
was the increased
iprdductivity of
Than"

War of the States Tvas the

settled by the most stupid method."
The bloodshed accomplished

iwas

economy

our

widening of the horizon.,

occurring

was

own

The

men

them¬

concern

what

their

munities.

Through Establishment of International Committees,

X/XX'/;X -'

•

MACKUBIN, LEGG & COMPANY
Established 1899

BOSTON
'

Members of New York Stock
New York Curb Exchange

BALTIMORE

Exchange
(Assoc )
NEW YORK

■

Thursday; January 31; 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

Trading1 Markets

Dealer-Broker Investment

Central Elec.& Gas

Recommendations and Literal

•

,,rr"

■,

& Co.

Salle Street *
TeTe, CG 271

A. S. Campbell

& Depressions

C6., Inc.

—

Association
'■

Products Co.

——

quest—Waldheim', Piatt & Co., 308
St. Louis 1, Mo.
Post War

Beneficiary—Descrip¬

companies which

tive Analysis of

LOS ANGELES

should benefit from the automo¬

650 S. Spring St.
Michigan 4181

CG 99

Beaver Street, New York

if?r

}

Corp.

' e'"

and

Balatoc,

guet,

'^'V'

The Chicago

Philippine Gold Shares—Analy¬

sis of United Paracale, Masbate
Consolidated, San Mauricio, Ben-

Utilities Corp.
''

Mindanao

•

Mother Lode—F. Bleibtreu

& Co.,

79 Wall Street, New York 5>

Ipc

Circular

Street, Chi¬

American

Investors-

111.
-:v:-

---

and

Gas. Utilities

mem!

Dayton

Malleable

Co.—

Iron

Study of outlook and speculative
possibilities for appreciation for
this company—Ward &* Co., 120
Broadway, New York 5, N. Y. Also
available
■

late, memoranda on:

are

Industries;

American

Great

Alabama Mills, Inc.; Douglas Shoe.

N. Y.

A. De Pinna Company—Circular
Quarterly Canadian Review —
Jan.,194€l Edition, including a re¬ —Herrick, Waddell & Co., Inc., 55
view of current Canadian condi¬ Liberty Street, New York 5, N. Y.

Request

Analysis of high leverage common
The
Chicago Corp.—Circulars- stock—Sills, Minton & Co., Inc.,
Hicks & Price, 231 South La Salle. 209 South,La Salle Street,, Chi¬
cago 4, 111.
Street, Chicago 4, 111.
Consolidated

The-Muter-Co.
i 1

Salle

South

\)i\ 'A

Pacific

Consolidated Gas

135

cago, 3,
i;;

Panama Coca Cola—Circular on

possibilities — Hoit.
Trinity Place.

interesting

i ■'

■.

Pacific American Investors, Inc.
—Memorandum—kitchen & Co..

Street, Boston 9, Mass.

State

4, N. Y.

Also available is a recent
bile, building, and frozen food in¬
dustries—Raymond &
Co., 148 brandum oh The Muter Cow

LA 255

common

MARKET

135 La Salle St

;

Study of outlook for
stock—Hi: Hentz & Co., 60

poration

North 8th Street,

DISTRIBUTION

State 6502

Common

97 years (all listed on New York
Stock Exchange)—Copies on re¬

UNDERWRITERS

CHICAGO 3

$1 Brondway^New York 6, N. Y.

Stocks with Un¬
broken Dividend Record of 15 to
/ Commonwealth & Southern Cor¬

For

SECONDARY

New York 6, N. Y.

way,

Arthur Wiesenberger & Company,

i'"-''^ !

I-

•../, •;;: -v / -1,>'■ •'■

162

Pacific Coast

—

Rose & Troster, 74
New York 6, N. Y.

HICKS 6- PRICE

brief analyses of four
corporations — copies
available to banks, insurance com¬

Chicago Board of Trade-

Now York Office

;

panies and Other institutions oh
request W- Dominion Securities

CHICAGO 4

Corporation, 40 Exchange Place,
■m
New York 5, N: Y. ^
° 1

1 Wall St.

Electromaster

Canadian

Randolph 5686—CG 972 j.

and

tions

Members Principal Stock Exchanges

Inc.

—

Recent

report
Mercier, McDowell &
Dolphyn,, Buhl Building, Detroit
26. Mich.

Bank

Trust

Co.—Analysis, for dealers only—
C, Ei Unterherg & Co., 61 Broad¬
way, New York 6, N. Y.
Also for dealers only are anal¬
yses of National Radiator Co. and
Republic Pictures.

report
Sheiler Manufacturing ^Corp.

Randall

;

Company

(B)

—

De¬

Safeway

'■*>■■1

Central Steel & Wire, Com/

Food

Coni.

Globe Steel Tubes Co.;

1 ''

CaUf.

Inc., Pfd.
\v' >'$£, i.-""l^' [j.U

»„

*Prospectus Available on

Request.

Alleghany Corporation

Paul H.Davis & Go.

350' Fifth" Avenue,

Coal—Anal¬

County

Franklin

ysis of condition and post-war
prospects—F. H. Roller & Co.
Inc„ 111 Broadway, New York 6:

for

and

brokers

dealers

Young, Larson &
Grand Rapids National
Bank Building, Grand Rapids 2,

Tornga,

Roi

purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N. Y.
Also available are studies of
Bishop

Babcock, York

Merchants Distilling Corp.—re¬

American Pulley Co. —Memo¬
Walnut Street,

1529
Philadelphia 2, Pa.

Also available

are

randum

/Central Coal & Coke

Corporation

Buckley

—

Bros.,

cent

Also available is

memoranda on

Midland Utilities arid Reda Pump

Mfg. Co.

•

—Adams &

Puget Sound Power &

231

Dearborn 1501

So. La Sadie St.

'
■

Co., 231 South La Salle

Brooke Iron Co.

COMSTOCK& Co.
4

analysis of

Teletype CG 955

Navigation Co.—Statis¬

& Co., Rtiss
Building, San Francisco 4, Calif.

Also

Mar

Tex

Realization

Memorandum

study

••

-•

•

1 VJv

' *

Mesta

United

Consol. Electric & Gas.

Corp.

—

interesting low-

Machine

Company

Engineering

'/yVI'.'r /

and

Foundry

—We Maintain Active Markets In—

Stock

Exchange \
of Trade

CHICAGO SO. SHORE & SO. BEND RR. Com.

Midland Utilities

GALVIN MFG. CORP. Common

Midland Realization

NORTHERN STATES POWER CO. 6 & 7 Pfds.

Write

For

study of Midland Utilities

SOUTH

•"

4-*

''C

SALLE

Telephone Randolph

4068

ry •

H. M.

System

Byllesby and Company ]

Incorporated.:
*-:'v/y.
135 So. La Salle Street, Chicago 3

;/ /

Telephone State 8711

Direct Private Wire to New York
Bell

M-3~

ST.
CHICAGO 4. ILLINOIS

208

537

ILL. — Edward J.
joined the staff of A. C..

Allyn & Co.» Inc., 100 West Mon^
Street, after serving in the

roe

armed forces.
Chronicle)

to Tub Financial

CHICAGO, ILL. — William R.
Johnston; Jr. has rejoined Central
Republic Co., 209 South La Salle
Street,

?£ter,.seeing,S.
iVfe:/

Chronicle)

(Special. to The Financial

ILL.

—

James

with
South

Dempsey & Company, 135
La Salle Street.
He was

formerly with Sills, Minton & Co.

Consolidated
Inc.—
for
brokers
and

(Special

Chronicle)

The Financial

CHICAGO, ILL.—Roy B. Sundealers—W. T. Bonn & Co., 120 del! has become affiliated with
Hicks & Price, 231 South La/Ball©
Broadway, New York 5, N. Y.
Street.
He was previously with
Thatcher Manufacturing Co.

—

Special memorandum—Roberts &
Company,
61
Broadway,
New
York 6, N/ Y.
U.

Sugar—Circular

—

Reilly & Co., 4d Exchange' Place,
New York 5, N. Y.¬

Goodbody & Co. in their trading

department.
Chronicle)

(Special to The Financial

CHICAGO, ILL.

Harry Rei*

—

blein has been added to the staff
of Link, Gorman & Co., Inc., 208

South La Salle Street/ after ser¬
vice in the U. S. Army.

Upson Company — Descriptive
circular—Seligman, Lubetkin.A

Co.; 41 Broad Street, New

York 4

New York.

The Financial

(Special to

Chronicle)

CHICAGO, ILL.—Earl C. Peter¬
sen

has

rejoined Rawson Lizars &

Co., 135 South La Salle Street.

Fash¬
ion Park, Shatterproof Glass, Wellman Engineering Co.; Kendall Co.
Victor

Special

Equipment Companymemorandum—W alston,
•

J. Tracy

Alexander

Joins Hirsch & Co.

CHICAGO,: 111.—J. Tracy Alex¬
ander, well-known on LaSaile St.
for the past 25 years, has become
Calif. /
;
•
iwwn
'
——a,',
associated. With Hirsch & Co.;
where he will supervise the firm's
investment : department, Louis J.
Stirling, resident manager, an¬
nounced.
During the war, Mr.
Alexander
left; the
investment
/: CHICAGO, 111.—Lamson Broth/ field to
accept a position with the
ers & Co., 141 West Jackson Blvd.,
War Production Board in Chicago,
members of the New York and
In the past he has been associated
Chicago
Stock
Exchanges, an¬ with a number of the
larger in¬
nounces that W..M. Washburn and
vestment'and broker age > houses
E. F. Thompson, Jr.^ have. been
here. Hirsch & Co., members of
released from active dut,y in the
Hoffman

Goodwin, 265 Mont¬

gomery' Street,

San Francisco 4,

■

Hesunse ai Lamson

Members

Board

Schell has

Washburn, Thompson

J FredJ.FairmanCo.
Chicago

(Special to The Financial Chronicle)

and Bond & Goodwin Inc.

Sunshine

■

I SINCE 19081

Chicago

American State Bank Building.

Memorandum

Inc. — special

available

military service, has< become con*»
nected with C.E. Bohlander & Co.,

Also detailed circulars on

price oil speculation—B. S. Lichtstudy— enstein & Co., 99 Wall Street, NOW
Goodbody & Co., 115 Broadway, York 5, N. Y.
New York City.
Bowser,

completing

Myron Crandall, after;

tical report—Kaiser

Street, Chicago 4, 111. Also avail¬
able is a recent circular on E. & G.

Light Co.

CHICAGO

American Service Co.—Circular

Chicago 4,

in.

Standard Silica Corp.
Maison

Miller

Co.

Kropp Forge Co.

Sports Products, Inc; —Memo¬
& Co.,/209

randum —Cruttenden

Street, Chicago 4,

Illinois.

Chronicle)

BLOOMINGTON, ILL —Finley

CHICAGO,

analysis—Faroll & Co., 208

South La Salle

Chicago Personnels

Woodburn has become associated

Corru¬

gating, American Insulator,

Mich.

Burgess Battery Co.

N. Y.

sound specu¬

Company'— Study

stock

common

/;■

lative

Circular—De

Indianapolis, Ind,
Rockford, 111.
i-Cleveland, Ohio .
'
v

New* York

South La Salle Street,

/'/:/;:/

N. Y.

American Forging and Socket-

Teletype CG 405

Tel. Franklin 8622

Study

only.

Stock Exchanges
Chicago Board qf Trade"

Members Principal
.

^ Birmingham
Co.— been/running rin .the ,Chj;oniele-i
Analysis—W? J. Banigan & Co., 50 write/to : park Merit, in;; care o*
Schenley
Distillers Corporation
Broadway, New York 4, N. Y.

Wall Street,
Also available
study of Baltimore and Ohio,

Both

1916

10 So. La Salle St., Chicago

—

Schenley Distillers Corporatlot
—Brochure of articles they havr

—Vilas & Hickey, 49
New York 5,

Established

660, Oakland 4,

Box

financing.

Wiggins was Vice President,
Secretary arid Director, of the
Commercial Credit Corporation of
New York where he was associat¬
ed for 14 years.
Mr.

(Special

Stores—Safeway Stores, In¬

corporated,

♦Wells-Gardner & Co., Com.

♦Woodall Industries,

Policies—Booklet dis¬

Wiggins

;

•

i::

cussing policies andy the objectives
of
the
Safeway. Neighborhood

scriptive circular—Hardy & Hardy
.11 Broadway, New York 4, N. Y.
i
Also available are circulars on
Gulf AtlahtiC Transport Co. and

"on

Receivable

CHICAGO,

Sports Products.

available

Also

Paul

Accountd*

(Special to The Financial

Public National

—-—

231 SO. LA SALLE ST.,

•/'/ •?>!

Wholesale Distributors
Middle West

Company of New
specialize in

Oregon Portland Cement—Bul¬
analysis of 19 New
Central States Electric Corpora¬ letin on recent .developments —
York Bank Stocks as of Dec. 3i, j
tion—Study. of interesting/ possi¬ Lerrier • &
Co.,
10
Post Office
1945—Laird, Bissell & Meeds, 120
bilities for capital appreciation -~
Broadway, New York 5, N. Y.
Square, Boston 9 Mass.

CARTER H. CORBREY & CO.
of Securities Dealers

Wiggins has been

York where; he will

Bankers Trust

Cur¬

parison and

Russel

Paul

elected Assistant Vice President of

ftreet, Chicago 208111.
airman & Co ., 4, South La Salle

h i''

Cellucotton

International

and

Bank Stocks—Com¬

New York

Member, National

Of Bankers Trust Co..

! New England Lime Company—
Descriptive
circular —D a y ton
analysis—New York Hansea—Including all wars from 1775 to
Haigney & Co., 75 Federal Street.
tic
Corporation, - 120 • Broadway, Boston
1946—graphic picture of American
10, Mass.
>
New York 5, N. Y;
business and financial cycles—Se¬
/ Also available are memoranda i North West Utilities Co.—Analy¬
curity Adjustment Corporation, 16
pn Metal & Thermit Corporation
Court Street, Brooklyn 2, N. Y.
sis—Ira Haupt & Co., Ill Broad¬

CHICAGO 3

[ '

Midland

and

rent

Established 1922

Tel. Randolph 6960

■'*''

Business Booms

■

120 South La

'" '

Utilities

Midland

Wiggins New Asst. V.P.

Realization — detailed studyWrite; for circular M-3-—Fred W.

It is understood that the firms mentioned will be pleased
to send interested parties the folloioincf literature:

Pfd.

United Stockyards

1 '

Kropp Forge

C. L Schmidt

Co.—Study of interesting possibil¬
ities—PeningtonyColket & Col, 70
Pine Street, New York .5, N. Y.

-://C/;///®

Teletype CG273

Navy

their

duties

Cdr.

Lieut;
years

in the Navy. Lt. Thompson

served
New York

Philadelphia

;

Pittsburgh

Minneapolis

and have resumed
general partners.
Washburn was
3%
as

2Vz

years

in the aviation

branch of the Navy.

•

the
and

New

York

other

Stock

principal

Exchange
exchanges,

have just moved their offices to
new

and

•'larger

Field Building.

quarters '< in
'

the

.Volume 163

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4460

Edward

Capital and Labor Representative
Debate Full Employment
1

NSTA Notes

now associated withi
trading department. In the
past Mr. Enright was with M. S.;

Wien

^vestment -Traders
*eb. 21 at the

reductions,

price

Mr.

Barkin

Full

employment,' he
claimed, means "a balance be¬
tween the income we produce and
tion and
v.-

spend

capital developments

for

program

which

believes

economy serve

capital
satisfacr

making

This

"definitely raising labor'#
proportion of the national income j

means

Solomon Barkin

further wage
bate

Full

increases at

discussion,

this

for

continued rise in Wages in i

excess

The

Employment which

took place at the New School
Social Research on Jan. 24.

1 ••• Speakers

de¬

and

of the past

rate."

achievement of an economic

balance

through

wage

essential"

which is

increases

to the realiza¬

Barkin, director of research,
Textile Workers Union of Ameri¬

ness

occurring from

year

27,1946,

It is im¬
portant, he said, to prohibit
the
institution

exchange control,
nor should the bill be' interpreted
as the duty of the government to
provide jobs "for the simple rea¬
that in a free society the gov¬

cordially invited to

Industrial Southwest

said in conclusion.

"Any full

ployment program which depends

primarily. vXpn

ifiscal--

powers, son

compensator^ programs, ori gov¬
ernmental

enterprises

asking

Miss

i,
Kansas, Okla-'C

our

a n dI*
Texas. X These X

Edward Golden Joins Staff

"simply

Such

increases, he said,
are not warranted and may not be
warranted for a long time to come.
Our supreme need* he pointed out,
a balanced economy.
"Too high

wages may
of markets

hamper the expansion
and

employment on
account of the increase in prices".
Mr. Cortney advocated the par¬
ticipation of labor in corporation

tprofits and payment in the form of
a dividend distributed
parri-passu
with a dividend., distributed to
stockholders.
mended

He further

recom¬

that the government in¬

has

ILL. —Edward

Arguing for-wage increases and

the

company

power,

Raymond J. Morfa

Swanson

has

become

associated

Lynch, Pierce, Feriner

may find in the new Southwest.
Raymond J. Morfa is Chairman of

dividends

and

thereto he

Washington,

was an

Prior

officer of Amer¬

ican Industries. Corporation*

(and

dends)

were

mon

Johnson Opens Office
X LAKEWOOD,

rate

stock since

Aug. 1935.

;

Corporation in the offering
George D. B. B'onbright &
Co.; Little & Hopkins, Inc. and
Sage, Rutty & Co., Inc.iX'X./;X..;. ^
are:

14526 Detroit Avenue.

CONTINUOUS INTEREST IN:
THE

Koehring Co.

SECURITIES

Corporation
Common and Preferred.

•

Recent

circular

request

ADAMS 8 CO.
231

SOUTH

LA SALLE STREET

CHfCAGO 4,

TELETYPE CO 361

ILLINOIS

X X

PHONE STATE

ojot

Standard Silica Co.
National Tool Co.

Northern Paper Mills Co.

Co., Com.

Cons. Water Pwr. and Paper Co.
Wisconsin Power and Light Co.
•

Plans
<1

Members

PHONES—Daly 5392

Teletype: CG 1200

**'

•

«•->(.

>,.<u

Guenther Law

Telephone COrtlandt 7-5060

Chicago Stock Exchange

ALLEY, DAYTON & GERN0N
CG

Chicago: State 0933

Stock

Exchange

So. La Salle St., Chicago 3, HI.
262

;X:;

X""'. Central

0780

MILWAUKEE

(2), WIS.

Offices In Wisconsin

iSaU Claire'

Teletype MI 488

X-J

Boston Chicago Philadelphia San Francisco

All Wisconsin Issues

James Manufacturing Co.

X
"r '

:XIncorporated XiX'XX!X.XXK'X'"'XXf;.'
Nev<? York 6» lSi.Yi

Member—Chicago

225 EAST MASON ST.
:

-i

131 Cedar Street

105

CHICAGO 3, ILLINOIS

Prepared—Conference Invited

135 SOUTH LA SALLE STREET

Albert Frank

-xi incorporated

X;;'v

advertising!

Froedtert Grain & Malt. Co.

(Hamilton Mfg. Co..

;

[Id A11 11 s Bran chest

Gisholt Machine

financial

Macfadclen Publications

Nekoosa-Edwards Paper Co.

milling

Central Paper

TRANSIT LINES

per

several extra divi¬
paid on the old com¬

DOYLE, O'CONNOR & CO.

National Terminals

ton

OHIO—Claude

Compo Shoe Mach. Co.

Telephone; Dearborn 6161

■> —

Common:

;

Associated with The First Bos¬

U. Johnson is engaging in an in¬
vestment business from offices at

the

M-K-T Board.

Beane, Buhl Buildin. Her has

GRO-CORD RUBBER

ivX

*E. & G. Brooke Iron Co.

period of
years, and the purpose of the sale,
apcordingx to; the prospectus, is to
over

'XX- '*/'?■.:

X;-XX;:Xx;-Common

being offered consist
treasury stock reacquired by

XiXteM ;
>X"
^Prospectus available upon request

f.-'f

Hoe & Co., Inc.;

Boston

KAISER-FRAZER

>&?'. x-'x

Preferred, Class A and Common
Xyz

The shares

UNION ASBESTOS & RUBBER
LOS ANGELES

First

Merrill Lynch Firm

recently been with the ,W. P. B. in

^American Service Co.

Everett Swanson Willi

Detroit

;

Tele. CG 573

Active Trading Markets

become

pression, and of all the economic
'

Chicago 3, III.
Tel. STAte 4950

share.

particularly
hydro - elec¬
petroleum,
and light met¬

developments

Request

wars.

Investors, Inc.

study of the causes of the 1929 de¬

world

KITCHEN & CO.

increase working capital and es¬
A. als.
Close to .domestic markets, tablish a broader
market for the
associated the region is also the hub of world stock "for the
future benefit of
with Hallgarten & Co., 231 South tr^de rputes; x While decentralizar the *
company
and
its
stock¬
La Salle Street. He was formerly tion is drawing industry 'South- holders"
westward, urbanization, speeded
The prospectus also states that
ah officer of Ames, Emerich &
by war, is broadening the South¬ it is the
intention of the directors
Co., Inc.
western home market.
to declare a dividend, payable on
The economic coming-of-age of
or about April 1,
1946, of 25 cents
the Southwest offers
stimulating per share on the present
common
opportunities to business.
The
stock; This would be equivalent
Missouri-Kansas-Texas RR., which
to $1.25 per share on the former
has grown up with the Southwest
$100 par value capital stock which
for 75 years, has prepared this sur¬
was
recently split up on a five
(Special to The Financial Chronicle)
;
vey of the advantages business
for x one basis. Regular quarterly
DETROIT, MICH, r-Everett C.

CHICAGO,

Golden

with Merrill

two

materials

tric

Hallgarten in Chicago
(Special to The Financim. Chronicle)

stitute art; objective and scientific

between. the

dustrial. age,

Warning against pelicies "which

trades.

Corporation
heads
an
i investment
'banking
group which is offering to the
public
today, 21,170 X; shares of
Taylor Instrument Companies (of
Rochester, N. Y.,) common stock.
The stock is priced at
$30.00" per

of the new in¬

society."

inexorably to a new
disaster," Mr. Cortney branded as

The

horn a,;

form in

in the priviledged industries like
automobile
and
building

attend,

Instrument Co. Common

o u r

vide jobs all the time and under

the

$ XVXX' x'''X.^

Memorandum

Corp.
Group Offers Taylor

formed/by.

all conditions,"

XPacific-American

First Roston

Southwest
em¬

raw

absurd" any talk right
higher wages, particularly

City,

Beane

RR. has issued a
very informative
entitled, "The Industrial Southwest—Land of
The booklet states that an unusual
combination of ad¬

which it is not prepared to per¬

liow of

York

135 South La Salle Street

the

New

"A NON-CALLABLE MARGIN

Survey Issued by M-k-T RR.

are

will lead

are

Missouri-Kansas-Texas

four states

Broadway,

their trading department.

and illustrated
survey

rich

ernment will not be able to pro¬

active duty with the armed
forces,;
joined Mitchell & Co., 120

have

George V. Jackish—Harris, Upham &
Co., Minneapolis.
Robert M. Rice—R. M. Rice &
Co., Minneapolis.
Out of town dealers are

the government to perform a task

son

been made
that Everett F. Wendler and Jack
A. Jossemy
recently released from:

...

free enterprise system.

Minneapolis,

Arrangements

charge of the Entertainment Committee
consisting of:
E. Byron Kairies—Merrill
Lynch, Pierce, Fenner
Minneapolis.

passed on to labor, he
CIO.
Mr.; Cortney, who declared him¬ added, recommending that a new Opportunity.
is
self in favor of a full employment national price control agency suc¬ vantages
hastening the
bill in order "to cut the grass ceed the OPA.
industrializa-i;
from under the. feet of the dema*
"We cannot expect the govern¬ tion of the
gogues
and
trouble
makers."
ment to perform the full task of strategic "cor- >
argued for amendments for the
income stabilization," Mr. Barkin ner". of the
measure in order to safeguard the
ca,

has

ACCOUNT—"

$7.50.

to year

are

tion's, winter party will be
held at the Covered
Wagon,
Wednesday* afternpon and evening; Feb,

must

& Co.
Announcement

Rector 2-7400).

VThe, President of the Twin City Bond Traders' Club, William J.
°^xfran^ & Beiden, Minneapolis, announces that the organiza¬

was

mon

(Pennypacker

Wendler and Jossem

TWIN CITY BOND
TRADERS CLUB

tion of full employment, demands
part of a series "Where
to Go: Governmental Policy in the that employers do not raise prices
Post
War
Period,"
of
which to meet wage increases, Mr. Bar¬
Thomas K. Finletter and. Beryl
kin* continued.
The full savings
Harold Levy are chairmen;: were
Philip Cortney; economist arid iri the rise of man-hour productiv¬
treasurer of Coty, Inc. and Solo¬ ity and in the cost of doing -busir

which

J- Brennan, Blyth & Co.,

(Pennypacker 9500

Guest Tickets

our

the people."

& Co.,

Namee, Hopper Soliday & Co., (Pennypacker
4075); Steve Massey,

Battles & Co.,

society,

our

Co., (Pennypacker 7330 or Rector
2-6528); Bill McDonald,
Paul & Co.,
(Pennypacker 1600 or Hanover 2-1266);
Joseph Mac-

of our national income for

tory'

Thomas F. O'Rourke and Frank
McKee,

Stroud &

The continued large scale use
a

Love, George E. Snyder

Reservations: Newt
Parkes, E. H. Rollins Sons & Co*
(Pennypacker 010° or
Digby 4-7818); Jack Weller,
Buckley Bros''
(Rittenhouse 4488 or Whitehall
3-7253).
'

on consump¬

expenditures cannot be

an-

Room

the income

has

Dinner to be held

Co.

V, ;

2-4552).

5h00J106 Chairman: Charles

breed fascism and ultimate devas¬
•

Association of Philadelphia

.0fSicials for its Mid-Winter

"spells the disillu¬
and
cynicism
which

employment,

tation.".

Benjamin Franklin Hotel:';

(Rittinhmfi A9nprmaS: Thomas
(Rittenhouse 0308
Hanover

stated that failure to establish full
sionment

INVESTMENT TRADERS
ASSOCIATION OF PHILADELPHIA

to the de¬
full employment bill, but disagreed, over the issue of

sirability of a

Edward[

Enright is

their

Prices Are Necessary for

I Representatives of capital and of labor both agreed

Dunne & Co., 25 Broad St., New
City, announce that

York
J.

Barkin, of the CIO, Declares That Higher Wages; and Stable
Stimulating Consumption,
:
;
x.

onion

Enrighf With

Dunne & Go. Slaff

Philip Cortney at the New School Terms Wage Rises Disastrous.
Instead He Proposes Labor Participation in Corporate Profits. Sol-;'

527

Fond du Lac

Madison

La Crosse

Wausau

& FINANCIAL CHRONICLE

THE COMMERCIAL

528

-Thursday; January 31, 1945'

M, Freeman Elects; A. F. of L Wants No
Expands Activities
PHILADELPHIA,

Fluctuating Wage Policy

PA.—Ernest

M. Brown has been elected Presi¬
dent

District Bond issues are finally coming into
their own.
Current prices compared to March of 1944 when we
urged their purchase are as follows:
New York Financial

—

BroadwayA:

68
*130

Beacon

Gov. Clinton.

29%

Maj^fair House..w—

72%

43%

Park Central.....-V

Broadway Barclay..

43
52%
49%
42
60

The writer believes

possibility of vacant space in
the buildings, when the Govern¬
ment vacates their present leases.
the

Demand for space in this section

profits

in Hotel Securities. Rising operat¬

rentals must

Replacements are

considered.

Leading Labor Spokesman Castigates Those Who Maintain That
Wages Shall Be Based Upon Fluctuations and- Uncertainties kid

.var-r

That Wages Should Go Up or Down as the Business Barometer
Goes Up or Down. , Says AFL Follows- Philosophy That Wages

include

Should Maintain Worker Under American Living Standards and

trading department

Brown and a

Not Be

urider the direcction of Albert H,

activities
.

nished

by Export-Import Bank,

and experimentation.

period

REAL ESTATE

SECURITIES

still

decidedly

;

transition

pe¬

perspective

u r

Broadway, 4Ws

165
U

870-7th Ave.4W
(Park Central Hotel)

'•'V

p, 1,

^*u,

(

y'4

agree

^*:V',*. • .-A/.;

„.,<•

\> *

W /riA~A'A\y' /iv}

will

Beacon

Hotel, 4rs
★

★.

■

form

sound

||1 basis

for
-

world

■

3;' Member* Now York Stock Ex change

growth

and

to set favorable

Mombori Now York Curb Exchange
40 EXCHANGE

PL.N.Y.

temporary

'and

taken

Boll Tolotypo NY 1-953

policies is neces¬

sarily

Dlgby 4-4950

Miller Jones, formerly
with Ira Haupt & Company, is as¬
sociated with Newburger) Loeb&
Co., 40 Wall Street, New.-. York
City, members of the New York
Stock Exchange.
He will special¬

living. This post-war opportunity
-

551)

on page

Henry

William §• Swingle
rising standards of

C6 mmercial

SHASKAN & CO.

Henry Miller Jones Now
With Newburger, Loeb

that

trade

ad opt

principles

ISavoyPtea3J6's,'56

|i|

28, 1946.
(Continued

upon

and

Cost

Accountants, New York City, Jan.

opportunity to

•

^'{•»'1'/

Chapter^

Association of

National

the

advantage;

world is readjusting

must

while

the

ize in short term

securities, called

man's

basis.

tion

maintained, from
that wages, - the
structure, : could not and

beginning,

rest,

not

upon any

as ours,

upon

an;

American

ofThe wage struc-

mot

was

loss.

.matter

steadfastly

the

wage

It.

Green

William

wage] policy/
We

en¬

wage

family

profits

our

democracy
flimsy, un¬

.tPart of address of Mr. Green at
the luncheon meeting held unden
the auspices of the

erafion of /Labor,

Chicago FedChicago, 111.,

1946.

Jan. 8.

(Continued

on page

598)

Brig. Gen. Evans Addresses Bend Club
j

CHIC AG CL

'ILL/

Brigadier

—

C. Evans, Artillery

General Henry

American Defense Ribbon; Anier-;
ican

Theatre

Ribbdh; Furopeah

Sey^y-sixtht Theatre Hibboh/(3 Battte Stars) \
Division; and a partner of Stein the^icterY; Rlhl^h-ahd the Rus-Bros. & Boyce of Baltimore, ad^ sian. Guards Medal.
He is a former;President of the
dressed a lunchebnrtne^lhg of the
Bond Club of Chicago 6n- the sub- Baltimore Stock ^Exchange. :;
Commander of the:

j ect "With Pattern in G ermany." [
He served in World War I„ in
the: American Field!Service and
the U. S. Field

Artillery, return¬

close of

ing to business at the
that war as a Captain.
In

1941, he5 returned to

Feb.,

service again as a Colonel
29th Division's 110th Field

of the
Artil¬

lery. In Nov., 1942, he joined the
76th Division at Fort lVieade with

i—111

Los

Angeles Exchange
Sejls Last Seat Owned
By Its Treasury
LOS ANGELES, CALIF.—The
acquisition by Phelps Witter of
Dean Witter & Co., of member¬

ship in the Los Angeles Stock Ex¬
change, completes the transfer of
with the
the last four memberships held by
division and served ' in England,
the Exchange in its treasury.. >
France, > Luxembourg and Ger¬
The other three were acquired
many, leading the 76th Division
by Charles L. Holton of Holton,
Artillery in the Ardennes, Rhine- Hull &
Co.; Frederick R. Tuerk
land and central Germany cam¬ of Cruttenden &
Co.; and John
paigns. In World War I he was E. Wheeler, who is associated with

bonds and preferred stock.

itself to the

ph il osophy
was
in
rela¬

Swingle

Mr.

before the New York

the

tions

world with

address

*An

na¬

all,

economic

such

great

is
g.

significant;

should

developing today as a
outgrowth; of the war, it
wilL perhaps be helpful to; de~

trading

feature

direct

other

States and the

4's

w e

that

situation

riod, present¬
ing the United

super-struc-

one

the

have reared

that

get

First

changes caused by^the war. -For-:
tunately, much is being done to
take advantage of it.

very

were

that Would pro¬
vide an income for them and their
families, commensurate with the,
requirements of. American citi¬
zenship; that the wage in America;
must: be an American wage.
We
contendedthat it, mattered not
whether the ; barometer of. eco¬
nomics ascended high or became;
low, : that
that; wage t standard
should be- tnaintained< iiL brdkL to:
maintain the American working;

estab-

then

e n

;

hrough which
we are passing

titled to

upon the
foundation

ture

interna¬
politicaL and economic fluidity. The

'that-American workers

since

and

1 i

forefathers

certain: basis but it must be es¬
tablished upon a solid and endur¬
ing t foundation. -We maintained

sound

ever

our

*>r-

has

proven

evolved out of experi¬

Early, in the beginningr

expounded an

that

in foreign trade, as the current

tional situation is one of great

Hotel St. George,

Labor was

The American Federation of
ence

economic

•

These are'crucial days

To Us

Means of Expanding Foreign

as a

Trade.

Primary Markets ihv

Points Out That There Are Less Than If

and Labor.

Problem, and Urges Exporters to Use Facilities of the .Department
of Commerce andOfcherAgencies for Aid and Informatibn.
Favors
Loan to Great Britain and Other Economic Loans, Such as Fur¬

mended in this column March 6,

on Strike and Urges
Voluntary Arbitration in Labor Disputes * as Better Than "Fact
Fiuding" or Any Other Kind of Legislation/ Advocates Free Enterprise System and Better Understanding Between Management

Shortage of Dollars Abroad to Pay for Our Exports, but Holds ThatV
There Is Now Throughout the World, a Demand for American Prod*
ucts That Far Exceeds Anything Previously Experienced.
Warns
That Each Customer in Each Foreign Market Is an Individual

Bonds recom¬

or Losses.
Urges Patience
Against Enactment of Hasty,

One-Tenth of One Per Cent of AFL Members

municipal financing.

Profits

Ill-Considered Legislation.

1899, the firm has confined its

Ganged by Prices

Under Present Conditions and Warns

Fenstermacher. Since its founding

philosophy

ings.
of Hotel

Foreign Trade Specialist, After Enumerating the Abnormal Condi¬
tions of Foreign Trade During War Period,, Analyzes the Present
Situation.
Points Out, as Handicaps, Existing Tariff Barriers and

which should cut into future earn¬

Prices

.....

expanded

By WILLIAM S. SWINGLE*

in many of these'hotels

necessary

;,s

What Postwar Foreign
Trade Might Mean

peak. It might be advisa¬

ble however to take some

ing costs with pegged

there is still

profit in these bonds despite

is at its

•

general corporate securities under
the
management of Ernest M.

22%
55%

52%

—

100%
Savoy Plaza...
91
80
:
*New $500 bond (bond was cut Sherry Netherlands
St. George.—- 86 A;
in half in reorganization).
82

Wall & Beaver....-

been

now

1-30-45 3-6-44

165 Broadway—-

>•..

The activities of the firm have

follows:

40 %

109%

Trinity Building

are

29%

South Fifteenth St:
v-

1944, cdmpared with current prices

President, American Federation of Labor

cretary of M. M.- Freeman & Co.,
262

78%

HarfhUan Building-

By WILLIAM GREEN*

Albert

and

Treasurer,

H. Fenstermacher has become Se¬

'1-30-45 3-6-44 ♦>

50 Broadway.:

and

his

present rank of brigadier ge¬

neral. He went overseas

TITLE COMPANY

SPECIALISTS
'M:

CERTIFICATES
BOUGHT

•

SOLD

•

■

Beat Estate Securities

QUOTED

awarded the

Distinguished Service

Ctpss; Silver Star

1929

Since

Complete Statistical Information

of Occupation
'

LJ. GOLDWATER & C0i
!

Members New York Security Dealers Assn.

„

.Vt

Teletype NY 1-1203

.."

(\ '

•£. A

1 4A

•

Members New

Victory1 Medal

y'1"1 V

vr-

Seligman, Lubetkin & Co.
.

New York 6, N. Y.

Incorporated

Ambulance

A.-

HAnover 2-2100

the

Broadway Barclay 2s 1956

165 Broadway

Legion of Merit;

Grant Bldg. 2%s, 1949 W.

Sherneth Corp. 5%s, W.
40 Wall St. 5s 1966 W. S.

Hotel St. George 4s
1

1950

6| -As 62

St., San Francisco 4
•

EXbrook 1285

Oak

Leaf

•

Bronze
Cluster;

treasury^ memberships:
available to

longer

prospective members!

the: hiarkefi is /currently

quoted

$10,000 bid, offered/at $20,000. : •

F 0 R

184
•

•

•.

•

Incorporated
150 Broadway
Tel.

BArelay 7-2360

•-

HELP WANTED

JLJ.;

■■

POSITIONS WANTED

OTHER CLASSIFIED ADS

4%s 1958
870 7th Ave. iy2s 1957 W. S.-

Amott,-Baker
IS5 Montgomery

Medal)

165 Broadway

3fayflower Hotel Corp. Stock

J. S. Strauss & Co.
^Tele.

;

Savoy Plaza 3s 1956 W. S.

Hotel Lexington Units

1956 W. S.

Roosevelt Hotel Common

Gov. Clinton 2s 1952 W. S.

Westinghouse BIdg. 4/48

in; each case was

American $10,000, an increase of $2,500
bver/the last^^preceding sale/With}
Field Service Medal

Roosevelt Hotel 5s 1964

Fuller Bldg. 2%s, 1949 W. S.

4^2/58

Savoy Plaza 3-6/50

N. Y| Majestic 4s

j ]

Commodore Hotel, Inc.

Broadway Motors 4-6/48
•

consideration

been completed
the year. The

TRADING MARKETS IN

Broadway Barclay 2/56

have

the first

World War II, he was award¬

Star.' Medal;

| Trading Markets Maintained:

arid the French Victory

York Security Dealers Association

BroaJ Streytj New;York '4

since

Fourragere;

French

\AAAA- 39 Broadway '-/ll.
HAnover 2-8970

transfers

Medal;*
Battle Stars);

in Germany

Turher-Poindexter & Co, A11 four

Medal; Army

&|Co.||
" •

New York 7, N. Y.

teletype NY 1-588

•

SEE INSIDE BACK COVER

Volume

Number

163

THE COMMERCIAL & FINANCIAL
CHRONICLE

4460

Universal Pictures Reports New

Profits Peak-

529

International

Pictures, a new
distributing organiza-,

world-wide

tion is being formed to be known

Net Equals

$4.86 a Share—Expansion Projected

profits of Universal Pictures Co., Inc., in the fiscal year ended
Nov. 3, 1945, aggregated $3,910,928 the largest in the history of the
company, according to the annual report to stockholders released
Jan. 29 by J. Cheever Cowdin, Chairman of the Board, and N. J.
Blumberg, President.
This was after provision for Federal income
and excess profits taxes of $5,981,000 and compared with net profits
O

$3,412,7010

—

the

with

pre¬

vious* fiscal

$24,375,513 in the preceding

yea r..i- Net
profits were
equivalent to the end of the previous fiscal year.
$4.86 per share Total; dividend payments, at, the
annual ' rate
of
on the 804,219
$2
per
share,
shares out¬ amounted to $1,519,842 for the fis¬
standing at the cal year.
•'
.

.end of the fis¬

over

program

plant
will

at
be

the next few years

improvement,

and

expansion

Financial

Chronicle)

(Special

out-

standing at the

The

Financial

Chronicle)

; DEROIT, MICH.—Samuel Gluck,
previously with Bache & Co., has
Faulkner & Co., Penobscot

become

Building. He was previously
in the U. S. Navy."

its

Universal City.
Work
started just as soon "as

affiliated

■

(Special io' THt PiNANciAt CHRom<nus>

v" '

AUGUSTA,

with Merrill

undertakings as well as for the
company's modernization-expan¬

ner

sion

become

was

II.

725

Zim¬

Meier is

connected

Broad

The

DETROIT,

Stoetzer,

with

Street.

Bldg..

•

Financial

Chronicle)

MICH. —Roland A.
with A. H. Vogel &

now

Co., Penobscot Building.

Lynch, Pierce, Fen-

Beane,

Prior to

the .management
increase the capital

program,

GA.—W.

has

merman

* 'V

with

(Special to

To provide the
necessary funds
carry out the company's new

The

Bank

manpower, - material .and, equip¬
ment become available/
to

has become associated with Wyatt,
Neal & Waggoner, First National

mod¬
•

(Special

ATLANTA, GA.—Louis F. Bunte

was

Smith, Hague & Co. in-the

past.

serving in the U. S. Army
Johnson, Lane, Space

with

(Special

*; ■

The

Financial

HARTFORD,

Chronicle)

CONN.

—

Herbert

R. Swift is with R. L. Day & Co.,

World-wide, .expansion
plans;
V.t(Sl»ectet.vtd>!ni8 FINANCIAL OHRONICLS)
were disclosed in the report.
The.
mbetingi * CLEVELAND, OHIO—Frederick
expansion plans involve the, for-; of stockholders will be called for
F. Lcustig is with Bache & Co.,
mation of a new major American Feb. 18 to authorize
the proposed National City Bank
Building. For
producing company and" a new; public
financing.'»t ;
*
- ' the past four years he has been
world-wide
motion
picture dis¬
in the armed services.
r"
tributing company^ a program of

$5.15 per share
on
662,59 2
•

dertake

un¬

proposes
to
funds of the company
through the
public sale of ; $6,000,000 of pre¬
ferred- stock,
A Special,

\yXf- Expansion Plans Disclosed

with

pared

Universal Pictures plans to

ernization

year, while inventories at the end
of the fiscal year stood at $19,112,041 compared with $19,487,592 at

cal year, com-

United World Pictures Co;, Inc.
new
'company is to be jointly
owned by International Pictures
and the J. Arthur Rank
interests
;/vv
of Great Britain.
as

This

Pearl

was

Street. ; In

with
y

the

past

Spencer Trask & Co.
.h.% ;v

■

(Special to The Financial

Chronicle)

end of the pre-

fiscal

vious

year.
J. Cheever Cowdin
.

modernization.: and

improvement
for its Universal City studio, a
mbdernization
prograiii for.i its
film exchanges,: and the enlarging
of its organization to meet
the

Rentals and

sales

Uni¬

versal pictures and: other opera t?

ing

income"* totaled

$51,049,428

compared with the all-time peak
$ol,56i,504 in the previous year.

Foreign

established

revenues

increasing business
and plans for the future.

Universal is

all-time high of $22,341,928,
art increase of $3,166,945 over the
new

previous fiscal year.

•

Pointing out that the company
in the strongest financial con¬

was

its

needs

terest

Corp.;

acquiring

International

half in¬
Pictures

Peltason, Tenenbaum

William^ Goetz

;C.

Dore

interests

Of Cali¬

LOUIS, MO. - Peltason,
Tenenbaum Co., Landreth Build¬
ing, 'announce that'as of Feb., 1st,

; -

Charles

amounted to

Spitz-Goetz producing
pany, which in its first two
ent-

com¬
years

$28,212,871 and cur- of operation produced a number of
•rent
liabilities were $5,182,316; outstanding
hits.
International
The ratio of current and working will establish its
headquarters at
-

assets

current

liabilities

was

$3.44 to $1 compared with $2.84 to
$1 a year ago.

Davids

made, of

are

firm

the

Partners

(Special

Hirsch.

Maurice A,

and

The

Financial

Chronicle)5'!'.",

Building.
(Special

to The

DETROIT,

Financial

Guttman

; ;

SMIAMI

MICH. —Frank

has

Financial

Chronicle)

added

been
F.

Rice

and

the staff

Company;

Roney Plaza Hotel.

Co.,
(Special to

The Financial

Chronicle)^

MINNEAPOLIS, MINN.
(Special to The Financial Chronicle)

DETROIT, MICH.

—

George

ford

Mercier,

McDowell

nected

Kosmowski has been added to the
staff

Thul

with

—

has, become

Keenan

(Continued

page

A"1-

amounted to

part'owner..

$24,883,827 compared

,~f1

Coincident with

the

jjj

-1

formation

i- &

-J

531)

.-J

j v'

Group Securities, Inc.
A Mutual Investment Company with separate classes of Shares
''

It:
mmmiw ■ mm

Steel Shares

Railroad

Railroad Stock Shares
*
•

Agricultural
Chemical

Equipment Shares
Low Priced Shares

< '

V v!

*' ''

ionj tH;.^Buiidiitg
Autompbile7l^y Aviati
Electrical Equipment,.WP,Vi;
Electncal-:Equipmextt,

Food

.
bv^vvb,®,,

,,...

INVESTMENT

liiflttSfylyftflll

BANKERS

Industrial Machinery

Members New York Stock
Other

Exchange and
Leading Exchanges

•

Mining

BONDS, STOCKS, COMMODITIES

Home Office: Atlanta

^ \i'.^ • '*■ <s'

•

i,^
SKares^-1-^ Railroad Bbnd Shares/
>'<>

rr-,///•
InstituiionaLBond Shares S f

v.i^

'.rxmw/Ky*--,:

l&TiZi,mtv'S fir

IS■ fillip
•

i ■'■■■

Fully Administered Shares !

•

i
IN QUI

Ri ESI NVITED

ALL

ISSUES

.ii J

Underwriters and Investment Managers

■•fr's-'

HAWAIIAN :S EC U.RITJES
11

^ ):rC- •*•»*. \*'*

^ ^

VO*K STOCK
TOftK

20
»

PINE

NEW

STREET

YORK

CURB

?Alt FRANCISCO STOCK EXCHANGE

..•fV

,v,:h\

1500

~ -i'l'i

.'T
R U S S

■

63 WALL STREET
♦ &

«.*•

• ji"

Group, incorporated

■)

3 U I LD I N <3

x:'..-'-/. V-iT"-SAN FRANCISCO

t '<

NEW YORK ?5, N. Y;

^ & *r vi.

BOSTON
*

CH»1G£

E/CH, tlGE

WEM9ER3
l»SW

••

Distributors

Kaiser 8. Co.

^!■;;0:?:;^Tobaccd4p Wf.? j Utilitie#
///' -Tobaccc£$
lutilttii

■

i-i

Phone LD-159

•

I■ f I Petroleum

J':::
General Bond

:h*-m

INVESTMENT SECURITIES

•

•,

Private Wires

tnyesling Ccnq>anyCl |M#rdhfihdi|ihg

M'Al

UNDERWRITERS AND DISTRIBUTORS OF

BROKERS OF

imfMM

CHICAGO

SAN FRANCISCO

ATLANTA-

'
-

Clift
coni

Clareyj,

National Building. He
formerly in the U.-S. Navy.

Inc.,

Total' taxes aggregated $7,568,for the year, equivalent to

wagespQdrMl^ieSit^unort-i organizationof^hic^it^ will*'bd

^'-?

BEACH, FLA.—Louis H,

Daniel

Chronicle)

The

110

,Cut-in
izalion pf film costs, royalties, etc.

Dolphyn, Buhl Building.

rental ibasis. ; It; plans to product
a minimum
of eight, top feature
$941 per 100 shares of stock and' to productions annually through
a)
33 cents out of every dollar
paid new rAnglo-American distributing

•

C.—Albert H.
Field is representing Scott, Horner
& Mason, Inc., of Lynchburg, Va.,

Coi, Inc.

Lyon, Jr., is with Carr and
Penobscot Building;

•'

HICKORY,IN.

Tea

Charles S.

are

OHIO—Richard

with Slayton &

(Special

fices of the firm will be removed
to 62 William St., New York
£ity.

UoTp.,

Securities

Street, after serving in the

U. S. Navy.

Cleveland

name

Hirsch, Jr. & Co., of
Charles S. Hale & Co., members
New York Stock Exchange. "Of¬

Hale, for¬
merly Charles S^Uirsch, Jr^Mll-;
dred P* Arnold, and v- Carmen de
the Universal studio in California; M. Hale, formerly Carmen de M.

where Universal will make
avail-;
able ^production facilities *on
a

Lewis

Lorette

has

First

DAYTON,

the end of the previous fiscal
year;
Current
and
working
assets

—

from offices in the Harris Arcade

Now Chas. S. Hale Co.
Announcement

change

the report fornia, the report disclosed.
The
working capital new C. company; will acquire the;
has increased to a new record high
story and production assets of In¬
of $23,030,555 from $18,798,-387 at ternational
Pictures, Inc., the pres¬

Chronicle)

(Special to- Tub Financial Chronicle)

stated

net

Financial

Harris & Cp. and Ledogar-Horner
Co.

David S. Friedman will be: admit¬
ted .to general partnership in the
firm.

dition in its history,
that

the

Equitable

joined the staff of
Corp.; Na¬
tional City Bank Building.- She
was
previously with Stranahan,

The

ST.

company
in association with the Leo Spitz-

CLEVELAND, OHIO

To Admit Friedman

major producing
that is being organized
new

(Special

HARTFORD, CONN.—Harold E.
has rejoined the, staff of

Faust

-"■*

wa$

THE COMMERCIAL

530

,' The continuing pressure on interest • rates is proving a more
potent consideration in railroad financing than is the elimination of
■the excess profits fax. It had been pretty generally expected that the
pace of railroad refunding would slacken sharply in 1946 when

•

"bonds called for redemption would no longer be almost;
entirely offset by tax savings.- It still appears that the-i—
volume of
-new offerings, exclusive of equipanents, will fall below the record $30,000,000 of-3%s, 1970 and $35,-)
V level of last year but it now bids 000,000 Of 3V2S, 1980.
premiums

tfair

to compare very
with that of any other
recent history.
~ -

Southern Pacific does not con¬
favorably
period in template any reduction in debt in

FINANCIAL.

&
CHRONICLE

by mid-year at the latest. Nothing
official has been said on the Nickel
Plate refunding but there is no
question but that the management
is
fully > aware that the c 3^4 s,
secured by the same mortgage but
with a longer maturity arid small¬
er sinking fund, are selling at a
substantial premium over. par.: (
On, the other side of tHe. ledger
most railroad analysts were rather
surprised at the decision of Illinois
Central directors not to attempt a,
refudirig at this time.'
Presuir^
ably, the stage hasvbeeii; set;for[
such an opera tion by- the com--(
pariy's call for tenders of under-;
lying bonds on the northern part,
of the system late last year
and,
the subsequent authorization
ear-;
-

Thursday, January 31,1946

I'Our

Reporter

Governments'*

By JOHN T. CHIPPENDALE, JR.
;

The general level of interest rates continues to decline

buyers

scramble to* take-up the available supply of outstanding Government

bonds, because of the fear of higher prices.

There is certainly a
and despite the fact that we
debt in our history, the American people seem to be
Sold on the idea- • of higher prices for these obligations. .7
The
"ihoney- managers" have-before them the problem of keeping prices
of the greatest debt -in> our existence from going - through the ceiling.
;
Whether the buying be* for speculative short-term appreciation
purposes, or for legitimate investment requirements, it is carrying
f bull"/ market

hr Government bonds,

have the largest

the market-to levels that could have an adverse effect

our finan¬
;-7/'-7' Vj the refunding and there will be
cial institutions.
With no word from the nation's capital yet with
Already two new offerings have only a nominal cut-in the Union
regard fo -future- financing policy, -to guide the market, there: is no
Pacific
Debentures
outstanding.
.been announced for early Febru¬
lier this month for the creation? way to dissipate the existing fear of still lower interest rates and
ary.
Union Pacific is to replace Details are not yet available but;
of a new blanket mortgage.; .It; higl^r. bond' prices»,^;§#0^
•its two series of Debenture 3Vis. it is generally expected that Great-

with

a/2%%

Pacific

Southern
replace the

coupon.:

going

$50,000,000 of 1st 3%s, 1986 With

Northern too will do little, if any,: had been realized that the num¬
debt reducing in the pending op-!
ber of bonds accepted in the in¬

eration. 7 The Southern
Pacific
bonds to be called have been out-:

•maturity unchanged and the new standing less than five months and
coupon rate to be set by the suc¬ the Great Northern less than a
and a half.
The Southern
Pacific offering in particular is a
expected to request bids in the
very pertinant commentary on the
near future for some $65,000,000
vast improvement in market senti¬
General Mortgage bonds to refund ment towards rail bonds below top
quality since last summer and fall
when many of the new. rail offer¬
-Mr.
v:.-vv*3
ings were^ to say the least, meet¬
ing a rather apathetic reception.
Now that a new pattern has
been set, holders of railroad bonds!
are recombing their lists carefully
to try and determine which other
Common & Preferred
of their relatively recent acquisi¬
tions/ with which' they had/here-;
tofore felt safe, are apt to be taken
away from them. Among the can¬
didates carrying coupons which
looked unbelievably low a year
cessful bidders

Great Northern is

•'

•;

■

year

•;

RepublicPicUires

Corporation

Chicago Railways

and

the

Cons. "A" 5s, 1927

half

two years ago

are

Gulf, Mobile & Ohio 3 3/4s, 1969
and the New York, Chicago & St.
kouis 3 3^5, 1975.:; Both of these
were-

issued late, in 1944.

It is known that

Timm Aircraft

Ohio, contemplates a refunding
operation involving all of its fixed
interest debt shortly after con¬
summation of the merger with
Alton.

make

prehensive
mortgage

not suffi¬

feasible

the

all

northern

half of the system and

substituting

\ newly

authorized

the

therefor

1st

had

been

felt

the

that

old

Mortgage and Collateral 3V2S,

1950

be satisfied thus

would

of the

new

first mortgage,

new!

Then the

bonds.

bonds could have been sold to
deem
and

re¬

May 1 the Refunding 4s

5s,

1955.

Refunding

of the

latter bonds has been considered
as

particularly

much

desirable

reconciled to

turn, it' is expected
will be completed

Chicago 4, IQ.

INTERMEDIATES

STRONG

The bank eligible taxable issues were in demand, particularly
the- intermediate maturities which pushed, ahead to new all-time

tops under the leadership of the December 2s of 1952/54.
The 2s
1949/51 also registered new highs.
The 2^s of
1952/54/were also well taken at their best levels of the year.,.. The
.

of 1950/52 and

Members

j SECURITIES

partially/ exempt bonds were steady to better with; the 3%% dub
1960/65 again at a new all-time high.
* vA good tone is in evidence
*

for the notes and certificates.

COMPLAINTS|:~:fSt.

Commercial banks with

LIGHTENS

New

York

Stock

taking care of the return flow of currency and
the increase in gold since these reverse movements started, is evi¬
denced in the reported figures since the start of the year. . . .
Holdings of Government obligations by the Central Banks reached
an* all-time high on Jan. 2, when they totalled $24,091,682,000. . % .
On Jan. 23 they amounted to $23,341,336,000, a decrease of $750,346,000.
.
(Bills were up $121^354,000; certificates of indebtedness
were down $754,800,000, of;which $343,700,000 took place last week;
notes were off $116,900,000; bonds unchanged.) ... During this sathe
.

period money in circulation decreased $672,000,000 while gold hold¬
ings increased by $70,000,000, making a total increase in deposits and

Exchange

-61 Broadway 7/'

New York 6

Telephone—DIgby 4-4933

J$.%&hihu
'

reserves^ of $742,000,000.

i0mydetvpe-WY-1-310

/
t

CUARAHTEED RAILROAD STOCKS-BOHM

St. Louis

San Francisco

INCORPORATED
9-6400

(when issued)
:

Complete arbitrage proposition

;

request

SUTRO BROS. & CO.
*

Tennessee

Members New Yqrk Stock Exchange

120

BROADWAY,- NEW TOKK 5, N. Y.

*T\

7/'

•r:

GETCHELL MINES, Inc.
>

UNITED PUBLIC SERVICE, Com.
UNITED PUBLIC

Hartford

Lehigh Valley Railroad

General and

co.

Circular Upon Request

52 waI1 street

0/ Securities Dealers, Inc.

HAnover 2-9072

n. y. c.

Members New York Stock Exchange

NEW YORK 5

ONE WALL STREET

......

Member of National Association

s-5s/2O03

Mclaughlin, baird & reuss
,

1. h. rothchild &

Consolidated

UTILITIES, Com.

Adams & Peck
Philadelphia

77 7

Tele. NY 1-724

(

Banks have been selling a few of their/ longest-term

^ ;

77!/

Street, -New York 5

| // profit takirig/has been appearing in the bank eligible taxable
iV&s due 1956/58' and the 2Y2s due Sept. 15, 1967/72, with; the pro¬
ceeds being invested in certificates of indebtedness and the restricted,
2 i^s due June and December 1967/72 depending on the selling institu¬
tions.

Railway!

BOwling Green, 9-8120

PROFIT TAKING

Central "

Common Stock

■

Thus by decreasing their holdings of Government obligations
by $750,346,000 the Federal Reserve Banks have fully offset the
$742,000,000 return flow of currency and gold, which would have
added to the inflationary forces in the mohey markets. ...

of: Government bonds despite the high prices

Railway Company

New York 4, N. Y.

j Telephone BOwling Green
'
.7-7 Teletype NY 1-1063

New'York C/ty member banks continue to add to their holdings
that have been pre¬
vailing since the turn of the yeaf. . . . Holdings of bills by these
institutions decreased $53 millions, from Jan. 2 to Jan. 23, while/
Certificates- oi indebtedness for the period were up $141,000,000, with
notes increased f>y $55 millions and bonds larger by $145,000,000;. . .g
Borrowings /by these institutions .decreased by $53,000,000 from the
beginning of 1946 to Jan. 23. , . .
'
♦ . ,
.

f
m

25 Broad Street

PORTFOLIO

That "Federal" is

Boston

Selected Situations at all Timce

■63 Wall

...

/ '

>■$

pflugfelder, bampt0n & rust

long-term rate of 2.25%.
This will most
point of conjecture about future financing,

one

that with reference to the coupon rate on the long-term obligations
which may be offered.

FEDERAL

RAILROAD

■

certainly eliminate

savings deposits, especially the' smaller
institutions, are voicing their opinion on the need for obligations
ing bonds, all of which mature in
that will meet the cost of the funds they operate with.
the early 1950s, can not. be ex¬
They are very definite in their statements that they should
tended.
It is still felt by many
get the same treatment as savings banks and they are not h'esianalysts that such an operation is!
tant to point out that they cannot pay for«4he funds they now
in the cards over the not too dis¬
have, with the, return on certificates of indebtedness.. * ^
yr.
tant-future, perhaps on the next
Corporate bonds of the highest-grade have now advanced to
redemption date of the Refunding levels: where; mapy,jankers in these institutions do
pot feel justified
in making further commitments!. , ^Likewise they are not, the type
bonds; Nov!; 1; 1946*
J " V /I
that will give tip quality for the sake of a highef return./.They
believe that their problem should be solved by the Government
giving them greater consideration in future financing operations. . . .

Specialists in

•

...

Refunding Mortgage the liriderly-

Railroad Bonds and Stocks

Broadway, New York5,N*Y.

231 So. LaSalle St.,

2*4%.

present rate of price advance continues there will very
soon be mo issue in the bond group that will give the high retuirn
of 2.25%.
Current trends in prices of the two recently issued
2V2% bonds seems to indicate that non-bank investors are pretty

inas¬

under the terms vol the

If the

re¬

lieving the heart of the system to
be covered by the

in the list that give a return in excess of

well

mortgage es the only lien.
It

bond and the V/2s due June 15, 1967/72 are the only obligations

com-,

eliminating

job
debt

was

v 2 Therefore, the market is doing its own speculating on the
financing program by pushing the yield on the recently issued ;«!v
due Dec. 15, 1967/72 down toward a
VA% basis. . . . This -

MEMBERS

New York Stock Exchange and other
leading Security and Commodity Exchs.

120

vitation for tenders

cient

•

Gulf, Mobile &

that the merger

tele. NY 1-1293

TELETYPE NY 1-2155

TEL. HANOVER 2-1355

Philadelphia Telephone

—

Lombard 9008

7>f

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

.Volume 163

uninvested funds have been increasing

taxables and with these and

their holdings, of

.certificates.

;

■

Neal in Post A!

.Non-Bank holders of the intermediate and

restricted securmost recently issued Z^s getting the bulk

ities with a the two

o^ tlie proceeds has

j;of thej funds, although a part

1959/62....

executives are reported to have

effects

Dr.

vancing prices.

oh the other hand,

further issuance of

higher

coupon

indicates

that

Government

the

the effect that it should "hold the line on interest rates" it has

academic

was.

National

elected

President

the

Detroit

Clearing House Association.
succeeds

President
Bank,

Allan

the

Charles

Smith,' Vice-

Commonwealth
T.

year

Detroit,

granted,,the

•

has

been

the

it has fitted in with the "money man¬

Office

Price

elected

Fisher,

Jr.,

and

Second

John

Vice-Pres¬

Calhoun,

Assistant Cashier of the Manufac¬

turers National ...Bank* is the new
Secretary and Treasurer:
*
f:
Mr. Tait has appointed the fol¬

Administra¬

agers'" desire for.

iower interest

rates.

tion, holding the position of As¬

...

Committee, Charles T. Fisher, Jr.,
President

National

Bank' of De¬

troit; Operations Committee,
Charles A. Stoll, Second VicePresident Manufacturers National

Bank;

Advertising
Committee*
McGonagle, Controller
the Detroit Bank; Auditing Com¬
mittee, William Duell, Auditor of
Detroit Bank; Personnel and Per-*
sonnel Relations Committee, A. T„
Wilson, Vice-President National ]<
Adrian A.

George D. Mil-

ler, of

Pacific Railroad

Southern

Personnel Items

and

legal counsel.

Rudolph Weissman
With Cole,
Hoisingfoa Co.
Cole, Hoisington & Co. Inc.,
Broadway, New York City,
announce that Rudolph L. Weiss-/
man; formerly a member of the
120

staff

the

Securities

and

change Commission, is
sociated

with

them.

now
7

Company

(Continued from page 529)
(Special to The Financial chronicle)

Invitation for

4 NEW ORLEANS, LA.—Charles
C. Armbruster is with D'Antoni &

Co., American Bank. Building.: s

$50,000,000 First Mortgage

Bids
% Bonds, Series E.

(Special to The Financial Chronicle)

NEW ULM,

Southern

MINN.—Kenneth M.

CHR0NICI,E)

called the

' 7*

PAUL, MINN.—Charles R.

previously with Kal-

fnan & Co.
Chronicle)

(Special to The Financial

MINN.—James

Morse has become affiliated with
Kalman & Co., Endicott

Building.

with

has

recently

U. S. Navy Air

been

(Special to

mund

The

Read

Florida

First Mortgage Bonds, Series D, due January 1, 1996, owned by Southern
Pacific Company, all of which are guaranteed as to principal and interest by

-[.'j

bonds in the denomination of
fully registered bonds in denomination* set forth in the draft 7'
as

Chronicle)

with

Cohu

National

Southern. Pacific Compahy.

,/The Railroad Company invites bids for the purchase of not less than the
Bids may be made by a single bidder or
by a group of bidders. If a bid is signed by a representative on behalf of a

coupon

entire issue* of the Bonds of Series E.

;

X- Southern Pacific Railroad Company, Suite 2117, 165 Broadway, New York 6,

the net income of the Railroad Company below
such amendment had been made, or new lease

case

N. Y. All bids must be received at that office on or before 12 o'clock Noon,
<>; Eastern Standard Time, pn February 4, 1946. Bids so received will be opened

by
12

the net income-of the Railroad

authorized officer of the Railroad Company, at said office promptly after

o'clock

Noon,

Eastern

Standard

Time,

said

date.

Each

bidder

may

Torrey,

f, and outstanding in the hands of the public, and $25,000,000, principal amount,

attend the opening of the bids in person or fey a duly authorized representative.
Company for any calendar, year shall
be insufficient to provide for the full sinking fund payment described in the
Each bid must be • accompanied by certified or bank cashier's check in New
York Clearing House funds, for $.1,000,000, payable to the crder of Southern
preceding paragraph and the full sinking fund payments to be made on the
next succeeding July 1, on bonds of all series then outstanding which, under
Pacific Railroad Company, such checks to be returned except to the accepted
j
the provisions of the First Mortgage and the provisions of such bonds, rank
bidder. The deposit so made by the accepted bidder,, or group of bidders, will
pari'passu with this Sinking Fund, the amount of net income available for such '• ;v be applied, to the eiitect provided in said Form of Bid, on: the purchase price
of the Bonds. No interest will be allowed on the amounts of checks furnished
sinking funds shall be prorated among the sinking funds for such series of
bonds, respectively, in proportion to the maximum amounts which would be
by bidders.
7'*
The Railroad Company may accept the bid deemed by it to be roost advan¬
payable into such sinking funds, respectively, on such July 1 if the net income
of the Railroad Company for such calendar year had been sufficient to make
tageous, but reserves the right to reject any and all bids. Unless the Railroad
such maximum payments. The amount to be paid into this Sinking Fund in
Company shall reject all bids, notice of acceptance of the most favorable bid,
I subject to the approval of the Interstate Commerce Commission, will be given
any year may fee increased to the extent provided in any supplemental inden¬
tures creating other "series of bonds,
but the principal amount of Bonds of
7 orally, or by telephone .or telegraph, to the successful bidder or to the repre¬
sentative or representatives of the successful bidder net later than one o'clock
Series E to bo redeemed in any one-year out of. .this Sinking Fund shall in no :
P. M., Eastern Standard Time, on February 5. 1946, and all bids shall be
event exceed $500,000,
'
" >
*
>

PETERSBURG, FLA.—Ed¬
D.

entered" into; the annual payment into this Sinking ..Fund' will be the amount
specified in (a) above.
>
'
J" .
H '
-

Building, after

Financial

serving in the U. S. Army.

ST.

what it would have had

MINN!—J. J. Gob-

& Co., Pioneer

lirseh has rejoined Lamson Broth¬
ers

mentipned. They will be redeemable at the. option of.
Company, as a whole, or in part by lot, at "any time, on not less ' /j group of bidders, each bidder makes the representative the bidder's agent, duly
authorized to bid, to improve or vary the bid, to receive acceptance or refusal
days' published notice, at prices determined in accordance with the
7 thereof, to receive notice of closing, to accept delivery of the Bonds and gener¬
formula applying to optional redemption set- forth in the, draft of the Circular,
ally to represent, act for and bind the buyer in respect to the bid, its accept¬
s
As a Sinking Fund, by which the/Bonds of Series E arid bonds of other
ance, refusal, improvement, variance or performance, and the representative
series issued under the First Mortgage may be retired, the Railroad Company
warrants that he has such authority.
Each bid must name a specified price,
will pay to the Trustee on or before July 1st in each year, beginning on July 1,
plus accrued interest from January 1, 1946, to the date of delivery. No bid
1951, (a) a sum equal to one per cent, of the principal' amount of Bonds of
stating a price of less than 98% of the principal amount of the Bonds of
Series E, theretofore authenticated and delivered under the First Mortgage, as
Series E, plus accrued interest, will be considered. As stated in the Form of Bid
supplemented by the First Supplemental Indenture, less (i) the principal amount f
accompanying the Request for Bids, bearing even date herewith, the obligaof Bonds of Series E theretofore surrendered to the Trustee and cancelled,
;
7 tions of the several members of a group of bidders shall be several and not
except Bonds of Series E retired through any sinking fund for bonds issued under
/ : joint. All bids must be submitted in . duplicate on the said Form of Bid/ which, /
the First Mortgage arid (ii) the principal amount of Bonds of Series E which
together with the draft of Circular setting forth information concerning the
shall have matured or which the Railroad Company shall have called for re¬
/ Railroad Company and the Bonds, is being distributed to persons of whom the •
demption, otherwise than through the operation of any sinking fund for bonds
7 Railroad Company has knowledge as being possibly interested" in the purfchase
issued under the First Mortgage, but which shall not have been presented for
of the Bonds. Copies of the draft of Circular may fee obtained from the under¬
payment, or (b) a sum equal to the amount available therefor out of the net
signed ;in reasonable quantities upon request.'
'
• 1
1
•
7 '•
•
income of the Railroad Company for the preceding calendar year in accordance
Bids must be enclosed with accompanying papers in a plain envelope,
with the provisions of the, following paragraph, whichever sum is less. The
securely sealed, bearing no indication of the name of the bidder or bidders or
First Mortgage provides that, if the lease of the Railroad Company's railroad. > *
the amount of the bid, marked "Bid for Southern Pacific Railroad Company
properties by Southern Pacific Company should be amended (other 1$an theFirst Mortgage Bonds, Series E," and addressed to J. A. Simpson, Treasurer,
renewal or extension thereof on the same terms), or a new lease entered into,

ST. PAUL,

which would result in reducing,

the

Force,

(Special to The Financial

Trustee.

Moody, 152 East Sixth Street. Mr.

PAUL,

the Railroad

than

Alsaker and James E. Klingel have

ST.

subject to and contingent upon obtaining such authorization.
* *•*»■
The proceeds of the sale of the First Mortgage Bonds of Series E will be
applied to the retirement or redemption of the Railroad Company's First Moji¬
to gage Bonds, Series B, due January 1, 1986. There are $50,000,000, principal
amount, of First Mortgage Bonds, Series B, $25,000,000, principal amount,
First Mortgage Bonds, Series A, due January 1, 1961, and
$50,000,000,
K
principal amount, First Mortgage Bonds, Series C, due January 1, 1996, issued

1946; to

of the Circular hereinafter

associated with Juran

The Bonds of Series E will fee issued

Chronicle)

(Special to The Financial

was

The Bonds of Series £ will fee guaranteed unconditionally as to both prlncipal end interest fey.endorsement by jSouthern Pacific Company. ;

$1,000,

with Cohu & Torrey,
26 Wall Street.
' ' r
:
f

Klingel

January

Cavanaugh is

become

Series. £*'), to be dated

/'First Mortgage?), to. The. Chase National Bank of the City of

New Vorki
•'

1ORLANPO, FLAvWilliam B-

ST.

"Bonds of

January 1, 1986; to bear interest (payable semi-annually on Janu¬
1 and July 1 of each y^r) at a rate (which must be a "multiple of Vath
of 1%) to be named by the accepted bidder; and to be secured by the Rail¬
road Company's First Mortgage, dated as of July 1, 1945, as supplemented
by First Supplemental Indenture dated as of January 1, 1946 (hereinafter

(Special to The Financial, Chronicle)
•

the

mature

OMAHA, NEB. — Harold M.
Smith has rejoined Buffett & Co.,
Omaha National Bank Building,
after serving In the armed forces.

■-

$50,000,000, principal amount,. First Mortgage Bonds, Series £ (here¬

inafter called

principal

amount, of the Bonds of Series E, and the guaranty thereof, require authoriza¬
tion of the Interstate Commerce Commission. Acceptance of any bid will be

ary

(Speclal tO T8l? FlNANCtAtr

The Issuance of the Bonds of Series E and the sale of $50,000,000,

with State
Bond & Mortgage Co., 26 V2 North
Minnesota Street. He was formerly
in the U. S. Army.

'■

Railroad

Company, hereinafter called the "Railroad Com¬
pany," hereby requests bids for
-

connected

Haugen

Pacific

Bank

„

No payment into this Sinking Fund shall be required in any year if prior to
July 1 in such year all of the Bonds of Series E shall have been retired or
shall have matured fer been, called for redemption but not been presented for

Building.

Any bid not accepted at such time will be deemed
rejected. The determination of the most favorable bid will be

irrevocable until that time.
to

have been

77 made on the basis of the lowest net interest cost, arrived at by computing at
; ! the rate named .in each bid, interest for the term of the Bonds of Series E on
the full principal amount and deducting therefrom the premium, if any, or
.

payment./

(Special to The Financial; Chronicle)

ST. PETERSBURG,

FLA.—Geo.

with W. H. Heagerty & Co., Flor¬

ida Theatre Building, He was pre¬

•

•1

it (Special to The. rihancial"Chronicle)

Payments into this Sinking Fund may be made at the option of the Railroad
% adding thereto the discount, if any, resulting from the. price named in such bid,
7 Company either in cash or in bonds of any series issued at any time under the ;?
The successful bidder or group of bidders will be furnisfeed with a: favorable
/ First Mortgage, other than Bonds .of .Series D, at the principal amount thereof, r 7 /opinion of Messrs. Cravath, Swaine & Moore as to the validity of the First
or partly in Cash afld partly in such bonds. All moneys paid to the Trustee for
'
Mortgage as supplemented by the First Supplemental Indenture thereto, of the
this Sinking. Fund shall fee applied by- it to the purchase of bond^ of any series
Bonds of Series E and of the guaranty thereof, and the successful bidder or
issued at-any time under the First Mortgage, other than Bonds of Series £>,
bidders shall have no right to refuse to purchase the Bonds of Series E on the
i ! as the Railroad Company may instruct, at ..private sale or in the open'
basis of any questions as to such validity if such favorable opinion shall be
market,
but rat a cost (exclusive of accrued interest,; brokerage charges and' other exfurnished.
7 penses) not exceeding the respective sinking fund redemption prices for such
;
A copy of a draft of the First Supplemental Indenture and a copy of the
bonds, oh the date of such purchase, or, if not redeemable for sinking, fund,
First Mortgage (to both of which reference 'is made for a more complete
u
the respective optional redemption prices of . such bonds-on the; date of such
description of the terms of the Bonds and the rights of the holders thereof), ft
purchase, or, if not. redeemable, the ' principal amount thereof.-'The" Railroad
copy of ft draft of the Agreement between Southern Pacific Company and the
Company may, at any time, beginning July 1, 1951, call for redemption for
Trustee under the First Mortgage providing for the guaranty of the Bonds of
77
this Sinking Fund an amount of Bonds of Series E, or bonds of any series^
7: Series E, and a copy of the application to the Interstate Commerce Commission
issued hereafter under the First Mortgage, which are redeemable for this Sinkand. accompanying exhibits are available for inspection at the office of the
::,7
ing Fund, up to the amount which will exhaust the moneys then in this Sinking /
undersigned, Suite 2117/165 Broadway, New York 6, N. Y.» and at the office
Fund. All bonds delivered to the Trustee on account of this Sinking Fund, or
of the Trustee, The Chase National Bank of the City of New York, 15 Broad
v,

K. Symons has become affiliated

viously with Cohu, & Torrey.

WILMINGTON, N. C.—Paul A.
Allen is with Kirchofer & Arnold,

Inc.,/ Insurance Building, Raleigh,

■

N. C.

purchased
f

I: (Special to The Financial- Chronicle)

redeemed by the application of

be cancelled and

IJFOUNGSTOWN, OHIO—Charles
are

now

with S. T. Jackson Co.,

in this Sinking- Fund, shall
-

Street, New York. 15, N. Y., and at the
:

Railroad Company, Room

office of the Assistant Treasurer of the

654, 65 Market Street, San Francisco S, California.

SOUTHERN PACIFIC RAILROAD COMPANY

M. Port and Arthur E. Reynolds,

Inc., Union National Bank Bldg.

moneys

-bonds shall be issued in' lieu tbefeof.

New York, N. Y., January 25,

1946.

Miller/ Canfieid, Paddock
Stone, has been reappointed"

Broker-Deafer
l

re¬

Executive

elected k First

ident,

the

committees:

•

President of the National Bank of

Assistant Professor of Economics,
and later became associated with

Each time this has been to the advantage

Treasury, since

of the

the

and:/

Manufacturers

Chairmen

Bank of Detroit.

Bank, of Detroit, Mich., has been

member pf

faculty of the latter institution

guided much more by the 'pattern that has been made by.

been

the market itself.

Clearing House

Vice-President " of the Clearing
degree of Doctor of Philosophy in
economics by' Brown: University House; -JosephDodger-Pres^
ident of the Detroit Bank, has
in 1941.
Dr. Neal served on the

been

has

much alive to the needs of the market,'and despite advice to

very

•

during

1940—41

precedent,

the'

Science Research Council Fellow¬

bonds by the Treasury more dif¬

Past

Jle is

"In?

George R. Tait, Vice-President

the

/:/7v.'7-

Detroit

Beta Kappa and \studied for
a
year at the London' School of
Economics.
He
held
a
Social

ship

ficult.

California

co-author

Tail President

com¬

The advices

graduate of the

in economics.

contributes,

one

Price

and

journals.

Phi

^ield^or^ th^ outstanding: issues,: which^ makes

lowering of the

Concentration

class of 1934, having received the
degree of A.B. with highest honors

ad¬

It is hard to. reconcile the need for continued

offerings of 2lfe% bonds, when
to a

Neal" is.

University

-these j satne : institutions cpntinvie rto be

buyers of the outstanding restricted obligations at

joined the
organizaHe is the author of "Indus¬

Inflexibility",

piled by the Bank.

further decline in the interest rate on long term issues, money

substantial

trial

traduction to War Economics'' and
author of ; several articles pub¬
lished
in
various
professional

and financial statistical data

company

;market / followers note that

I tion,

search activities, and coordination
and interpretation of industrial

pointed out to Secretary of the Treasury Vinson, the adverse
of

Bank

on Jan. 16 that
Neal has been ap¬
pointed Director ;,of Research of
the Bank.
Dr. Neal's duties will
include general supervision of re¬

FOLLOWING THE MARKET

Although insurance

Reserve

time

the

Reserve. Bank

Dr. Alfred. C,

gone

the 2*4s due 1956/59 into the 214s of

switching out of

Federal

spective

Federal

Boston announced

into the
^ Likewise there has

*!June and December.; 2J4s»t of 1959/62J '* V
been

The

lowing

nator

;

Boston Reserve Bank !

lon^-term eligible

obligations have sold these bonds to take on the
i

sistant War Goods Price Coordi-

531*

By J. A. Simpson, Treasurer 7

Exas¬

THE CUMMLKC1AL

532

Taft

payments,

Regards Figures of Nation's Debt Y
Estimated By Truman as Misleading

Criticism

and

praise from Democrats and

$2,750,000,000

such

phases.

■

Taft,

Republican,

press

advices

Mr. Taft

reported

having asserted in a statement

debt

000.

tfeat "it is not true that the pub-

deficit

does

not

include

will be reduced during

the

"If

these

Electrifi¬
loans

the

deficit

All
of

regarded

loans.

them, except the transfer

gold

fund,

from

will

debt."

the

stabilization

increase

Virginia,

complimented

in doubt about some

others

vigorously."

oppose

On the other

side,-Sen. Olin D.
Johnston,
Democrat,
of
South
Carolina, thought that "if we try
to do too much, We may not get
anything dbne."
\ :
' • r
Sen. Scott W. Lucas/ Democrat,
,

Illinois, termed labor-manage¬

ment

troubles

"The

number

one

posed legislation could bring con-

Harold

proposal* will'

not

problem"

be settled before most of the pro-

tructive benefits."
Several Republicans called for
greater economies, Representative

Knutson, Republican, of
Minnesota, proposed that the esti¬
mates

Gear-

cies

California,

"I agree with some

pf; the President's. recommenda-

Mr.

said that "it must

Bertrand

commented:

and

And Rep¬

disputes."

heart,-Republican,

Sen. Harry F, Byrd, Democrat,
of

resentative

debt

solve labor

public

our

•

•-

•

Federal

the

tions, I
and

Truman's

"fact-finding

ex¬

will f be

$14,000,000,000
than
$4,000,000,000 veven if these ex¬
are

that

Thursday, January 31, 1945

Representative Everett M. Dirksen, Republican, of Illinois, called
the message "highly encouraging."
Sen. Wayne Morse, Republican, of
Oregon,
generally
indorsed
it,
although he remarked that the

penditures

Woods

Mr.

$300,000,000,000.

-Y

regarded

are

penditures

It does

Bretton

Rural

Administration

twice that amount.

note

down to $271,00,000,000
30, 1947, Senator Byrd said
he plans to introduce a bill to set
the Federal debt limit at $275,000,000.
The legal limit now is

of
$250,000,000. UNRRA is down for
$600,000,000 only, but will spend

the pro¬

count

posed British loan at all.
not

include

cation

$4,300,000,000 for 1947 is some¬
what misleading,"
Senator Taft
said.
"It only includes $1,000,000,000
for
the
Export-Import
Bank, which will need $2,800,000,-

the

Ohio,

estimate

approach"

budgetFv^*YY 'F

June

closer

"The

sharpest remarks in this connec¬
tion were made by Sen. Robert A.

will

some of which
have to be continued.
Nor

does

say:

out that some of the

Taking

may

ciated Press had the following to

\-/'IflFYv

Pointing

It is not clear

"an

balanced

subsidy payments,

Republicans in Con¬

year."; Continuing, the Asso¬

the

Truman

and

cash

estimate

had been thoroughly ex-«>

pected, and their principal atten¬
centered on the budgetary

amount, to

gold,

whether the budget includes food-

directed toward President

tion

notes to the fund.

Truman's message on Jan. 21,
most of the comment, however, having followed party lines, it was
noted in Associated Press advices on Jan. 21 from Washington, which
added that the Congressmen generally found the President's recom¬
mendations on the State of the Union such as he had made before or

gress were

which, will

CHKONICLE^

FINANCIAL

for

all

Government

agen¬

except the Veterans Admin¬

istration be cut by a flat 25%.

The House Republican leader;
Representative Joseph W; Martin
of

Massachusetts,

similarly

said

that "if we're really serious about

budget-balancing,
eliminate

extravagance:

its

will

reduce

top-heavy bu¬

Bridges, Republican,
Hampshire, declared that

MrY Truman's

ENTERTAINMENT FOR THE

message ought to
been labeled "a message on

have

in providing

progress

Sen. Styles

of New

COMPANY, INC.

reports

act

spending and

and

substantiallyy the
reaucracy."

UNIVERSAL'^PICTURES

will

excessive

the sorry state of the Union."

"Actually,"
said
Senator
Bridges, the budget is way beyond

MILLIONS

what it should be and we're still

running
FINANCIAL

Universal pictures are enter¬
designed for the
tainment

millions
"'Y-K

Marking a further step in UniversaTs
to the

give increasing emphasis

production of pictures of top

entertainment value,

the company'

of creative talent through

the addition of

group

profit, iti the fiscal

and

the

same

Universal

stars

prosperous with agriculture, labor
and industry functioning at full

United World Pictures Com¬

|nc. is being formed. This new
company, to be jointly owned by Inter¬
national Pictures

capacity in peacetime as they did
in wartime. The people will look
to Congress, to pass legislation to
implement the President's pro¬
gram." h f F fry

(of which Universal

interests of Great Britain, plans to:

paring with $3,412,701 in the precedgft oss income from

developed

the way for our nation to remain

pany,

ended

i-/.ft.-';}.*:

own

half) and the J. Arthur Rank

1. Establish

fearnings

operations
M Y

MIUIONS OF DOUARS

world-wide

One

thing Sen.'James O. East¬
Democrat, of; Mississippi*;
liked about the 25,000-word mes¬

selling and

after taxes

land,

sage was

its length. :■ He and fel¬

filibusterers

low

against the Fair
Employment Practice Committee
a breathing spell during the
reading by clerks.

MILLIONS Of OOUARS.

such

took

delightful Deanna

York; labeled^^theYFresi-^

economic program

Gossett, Democrat, of Idaho, said
that "the President has pointed

Pictures, a new world¬
wide distributing organization to be
as

„

Durbin,

lovely

sational

Yvonne

Maria

Montez,

and on—Donald

O'Connor, Turhan

If-

Bey, Charles Korvin, Ella Raines, Ann
Blyth and Peggy .Ryan—a host of tal¬

ented others.

demands

pictures

For good

ment—to

entertainment';
>11

built to be good entertain¬

appeal to

vast market.

■

indicated

5yi billion cash sales

picture

year

most

•

record

year.

working assets to

Street

Edward G.

Robinson, Joan
*

„

YYYy Y'

-■

Bey

A■■

y-.V.

Sabu
Don-

levy, Susan Hayward, Patricia Roc Y

So Goes My Love—Myrna Loy, Don Ameche

Shahrazad—Yvonne
■

DeCarlo,

Aurnont, Brian Donlevy

Jean

•.

Pierre

Y:.YY Y.;: Y;

new

company, to

company

other

and production assets of
International

Pictures, Inc. (the

present

Spitz-Goetz

company) which in its first
of

of the Annual Report wif! be

gladly furnished
Universal Pictures

Company, Inc.,

Rockefeller Center, New

request to

York 20, N. Y.

operation

produced

number

1. Produce
duct ions

exploita-Y

emphasized that the

arrangements will in

of Y

with

UniversaTs

own

way

wide distribution through

new

coupons

new

which it will be part owner.

J. CHEEVER COWDIN,
:

;

Chairman of the Board

■N. J. BLUM BERG, President

attached will be issued in
of $1,000,
$5,000,
$100,000 and $1,000,000.

denominations

$10,000,

plans for increasing ;Y
'

y ;

Bearer certificates with interest

interfere

■

be accept¬

deposits of public
They will not be ac¬

secure

ceptable in payment of taxes,

The certificates will not be issued
in

registered form.
The

|||

Anglo-

certificates will

moneys.

are

pro-" Y;

distributing organization of

able

business, both in this country

and abroad.

The

new

annually for exclusive world-¬

American

in this

from; the

derived

other excise taxes,,whetherFederal
or
State, but shall be;
exempt from all taxation now or.
hereafter imposed on the princi¬
pal or interest thereof by any
State, or any of the possessions of
the
United • States,
or
by
any
local taxing authority.^/
Y,, v-

important advantages. However,

it should be

its

minimum of 8 top

income

"show win-1

and abroad, and there

two years

imposed. The certificates shall be
subject
to
estate,
inheritance,

gift

undertaking should give the
increasing prestige, both in

this country

outstanding hits. It plans to:
A copy

throughout the world

UniversaTs participation

by Universal and the Leo Spitz-William
Goetz
interests, will acquire the story

dated;

certificates shall be subject to all
Federal taxes, now or hereafter

world-wide

be jointly owned

1,1946, and will bear interest

The

Universal, In¬

tion of films.

This

will

will not be subject to call for re¬
demption prior to maturity,*V;
r

minimum

among

dows" for the exhibition and

a new
major American motion
picture producing company to be known
as International
Pictures Corporation.

Little Giant— Abbott & Costello

Canyon Passage—Dana Andrews, Brian

tion of

.'^Y. Y

certificates

Treasury.

/;■

payable semiannually
Aug. 1, 1946, and Feb. 1, 1947.
They will mature Feb. 1, 1947, and

the possible acquisition of theatres in
key cities of the United States and

-\Y-':•?*HTV'

The
Y:

ternational and United World include

•

; $5,043,467,000.
'advices state:

per annum,

Universalis participating in the forma¬

Turhan

Tangier—Maria Montez, Robert Paige,

■■

debtedness, series A-1946, matur¬
ing Feb. 1,1946, in the amount of

from that date at the rate of.%%

Distribute

Arrangements

NIW WORLD-WIDE UNDERTAKINGS

Night in Paradise — Merle Qberon,

;

ber 1,1946.

voting four quarterly payments of 50
cents per share.

•

distinction each year, starting Septem¬

dividends at the rate of $2 per
year,

Beca Uze of Him — Deanna Durbiri, Charles
Laughton, Franchot Tone '

The Board of Directors maintained

.»

as:

■

of 8 American and 8 British pictures of

people results in many different; liabilities was $5.44 to $1 compared
pictures. Current, and coming % with $2.84 to $1 a year ago.

Bennett, Dan Duryea

world. It expects to distribute

current

types of

Scarlet

Treasury Department an-1

an offering
of i-year; % % certificates. of ; in-*
debtedness; for exchange to ;the
holders of % % certificates of in¬

Feb.

outstanding. American
and British films in United States, Great
Britain and throughout the rest of the
:

capital attained a new
high of $23,030,555. The ratio of

current and

the most entertainment for the

star, story and production values

The

companies in the \ Rank Group, under

$51,049,428 and compared with
ail-time peak of $51,561,504 in the

preceding

em¬

Universal releases include such
strong

of physical facUiti^ of Universal in
and abroad, and also of

lease arrangements:

the

4^ to
in the

of constant

distributing organization, which will make■ Y
use

Net working

UniversaTs policy
on

$4.86 per share.

equivalent

this country

United States alone.

phasis

was

taled

90,000,000 to 100,000,000 cash, admis¬
box offices each week—a total of

This net profit

year.

Rentals and sales of Universal pic¬
tures and other operating, income to¬

by the

sions sold at American motion

ing
to

Something of the size of the motion

picture market is

Treasury Offers %% Ctfs.
nounced'bri^^; 21,

good talent. And Universal

are

sen¬

DeCarlo, hilarious

Abbott & Costello. And the list could go
on

"sound
and/necessary^" and Sen, Charlek;

Coincident with the organization of

will

and actresses in

manner

denTs

in the

of outstand¬

developing

...

young actors

of New

I nternational

$3,910,928, the largest
history of the company and com¬

Universal makes pictures, Uni¬

Universal studio in California. Universal

known

terrible deficit."

Sen. James M. Mead, Democrat,,

headquarters at the

of $5,981,000, was

ing producers and directors.

versal makes stars

year

its

will make available to it production
facilities on a rental basis.

November 3, 1945,; after provision for
Federal income and excess profits taxes

has further expanded its human re¬
sources

Net

Establish

Universal Pictures Company, Inc. to¬
day is in the strongest financial condi¬
tion in its history. It is therefore in a
favorable position both to meet the
problems of the post-war era and to
take advantage of opportunities for
growth and expansion along sound lines,

entertainment created

enjoyed around the globe.

program to

PROGRESS

certificates will

subject

the

general regulations of the
Treasury
Department,
now
or
hereafter
prescribed,
governing
United States certificates.

Subscriptions

will

received

at the Federal Reserve Banks and

Branches

and

the

Treasury

Department, Washington.

•/

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number* 4460

163

George Reinhart Joins

a^;vhon.-tom c. Clark*;
*"

States

Attorney General of the United

; •

Essential to

[ff man's Policies.
,

Col/. InC.,

Federal Department of

| Stock and Curb

the

Jr,, a
Sulzbacher, Granger
Co., Ill Broadway, New York
City, members of the New York
block exchange, will be among

on*

Jan. 28 dis¬
stock

common

those

ington

a share. The money will
tn retire-bank loans, to

award

from

Feb.. 12, in recognition

distinguished

v service
per¬
cooperation with the.
British Armed Forces during the'}

buy machinery and equipment and
to finance building improvements

formed

and increase

Exchanges. He has

receive

the British Government in Wash¬

(par

$1) at $21
used

101,769 shares of Detroit

Harvester Co.

spent the major part of his. career

war.

working capital.-

On Jail. 10 the authorized capi¬
was increased from
200,000 to

irt

the

Commodity field; having

tal

jdined A. C. Israel in 1919. He has
a

when there was no

little Federal

Justice; in fact, there was very

direct!

David' Granger,

partner

underwriting group headed

tributed

Co., 30 Broad Street j New York

wide

acquaintance

importers,
in American history

>' An

by Reynolds & Co.

! City, members of the New York

•

There was a time early

•

hasvresigned

commodity department of Gruntal

Instance. Claims Wartime Price Controls Have

as an

Reinhart

Granger to. Receive Award
I.' Major

secretary^of A. €.'Israel Com¬

modity

Prevented ihe
V Disastrous Effects of Inflation Which Followed World War I, and
§*■ Also States That We Must Have Full Production With Price Conf trol. Sayi Industrial Conflicts Must End, "Otherwise Your Government Will Have to Step in" and Put an End to "Kicking Around of
? the Public."
Upholds Continuation of Wartime Powers of PresiT dent.
Favors Loan to Great Britain, and Lauds President Tru-

George

'as

Measures Against Inflation

1 ■:, Are Ineffective and Cites the Protective

Common Stock Sold

Federal Power Has Be-;
Protect Public in Matters in Which State Powers

Cabinet Officer Contends That Growth of
come

Detroit Harvester Co.

Griinia! & Go's Staff

Price and Other Controls

533

jobbers,... brokers

manufacturers in

numerous

de Samt-Phalle Admits

500,000 shares and each share out¬

the

among

standing i

and

shares.

two

that

on ■

With

date
the

just completed, there

com¬

modity fields.

Andre

became

financing
400,000

are

Broad

members

Moss to

(
Co.,*
,

Street, New York City,;
of

Exchange,

outstanding.

Saint-Phalle

the New

will

York

admit

partnership

Stock:

DaVid
Feb. 7.

C!.
:

Government
at all.

to them, for in our ex¬

necessary

(Government)

arid ;,with ^oiir
responsibilities
the
Federal
Government must
necessarily exercise, certain func¬
tions which are beyond the reach
and
power
of I the • individual

is in truth our

grates

panded
society,
ever-increasing

great

statesman,
J

f f

e r son

k, said:
"The
Federal
t hi

e r n

in States'

m e

Federal

alone

power

t e

p a r a

fact, the
first Attorney
General of the
went A

Golden State

Inflation

Tom

Clark

boundaries.

still some peo¬

the Federal Gov¬
people and

Association,

ll s.

f n'A''

1 I

Stock?ff:

t >

before December 31, 1955)
-

Jan..25, 1946.

Price $103.50 per

;

(Continued

iM'K

Ind.,

Indianapolis,

page

589)

plus accrued dividends, from January 1, 1946; to date of dellTery-

;

'•

r'.:;

.1 -i, ■

•'

x* | -..' •
-V'
1
Copies of the Prospectus may be obtainedonly from sucjt of'the .undersigned r
ss are registered or licensed dealers or brokers in securities in this 'State f
\

R. HARRISON*

Massachusetts Institute of Technology

Blyth & Co., Inc.

ihe United
Stated Since 1920HasExpanded 25-Fold; He Jfold* That Scien¬
tific Research, Which Is Now Directed at Increasing theA™1'
ability el the Sun's Energy, Will Make the Wealth
S
Limitless.
He Deprecates the "Nonsense and CalkmityHoWlmg"
Attending Current Discussion of the Atomic Bomb, Warning That
Scientists as Well as Journalists Like to Startle Theiu Public by
.f Prophecies of Doom.. He Cites the Close Interrelationship Between
Politics, Economics, Industry, Technology and Science.
In discussing the relation of scientific research to economics
Dean Harrison Points

ff'i ''Syi \'

(

by Attorney Gen¬

An address

EconomicDevelopment
\

elf h-l)

GlOG Par Value

Scientific Research and
By GEORGE

Company, Ltd.

eral Clark before the Indiana Bar

ernment is close to the

Dean of Science,

"*\f

American economy must be pro¬
tected from the disaster of infla-

of their sovereignty.

are

;

(Convertible into Common Stock on

ple today who think of the Federal
Government as foreign to them.

4% Cumulative Preferred

it knows no State
Clearly the over-all

Certainly

further,

But in truth

to act effectively.

tion.

vehemently denied that
the States had ever yielded any

50,000! Shares iSi||iii|^Sl

States

Indeed, there

■

example, let us take infla¬

For

in that he

'New Issue

believer

rights, I am equally as
the opinion that the
Government
must step

Protection Against

United

■

protect the whole people in
those areas where the States lack

sovereignty of
states."

stfong

only and is underno circumstances to hit construed as an offering
or as an offer to buy, or as a solicitation of an offer to buy, any of such Shares.- The ■
offering is made only by the Prospectus. This advertisement is published on behalf of only such of.
the undersigned as are registered or licensed dealers or brokers in this State.

of these Sharesforsaie\

in to

taken from the

•

,i'

'<■*

am a

'•

strong

which Depart¬
ment

*''*''

Although I

foreign G o v-

This adiertisementappears as a matter'of record

Out That Industrial Research in

Wertheim:&: Co.

tekmah Brothers
J. Barth & Go.

& Co.

one

should, of course, be as

.ing
cific

too

and

sold in

When

for
n ess,
George R. Harrison

my 10n,;

applied research
in
raising the
economic level,
which have been so ably demon¬
strated by- Dr. Wilson using the
The results of

industry as an example,
demonstrated for any one
of a score Of industries on which
our economy depends.
. • •
.
5!

petroleum
be

American me¬
refrigerators were sold
at $400 apiece. Ten years later, as
•a
result of industrial, research,
•much better refrigerators could
be sold for less than half as much,
In

and

is under

ast an offering of this
such Stock.

circumstances to be construed

or as a solicitation ^of.offers to buy, any of
The offering is made only by the Prospectus.
'

sell

one-half

far

the

•0

v.'v

r*.

;

<:-jrT

f-f V,,

/,/

Julius Kayser & Go.

machines and
greater return,

Common

to
shorter work week; to

153,400.- Shares 5

s*;

Capital Stock

($5 Par Value)

higher taxes, if necessary; to
support a still better research lab¬
oratory than he had before, and
to declare higher dividends.
Re¬

' V".

pay

"custom-built" molecules
such'as freonand atabrine and

gets

labor for

signed

not,

for salet

..«■

which enables him to' pay more

can

many

thus

and
then testing
the resulting
at random

can

manufacturer

sells

icals fizz away

Stock

Not a"; NewTssfae^

previous price, there, is an imme¬
diate reaction on the economy. He

ting his chem¬

•

1926 at an average

machines

better

chemist, vwho,
instead of let¬

spede¬

times as
many were sold. Most of this gain
resulted from industrial research.

methods of
the modern

prepares
ci ally

'This advertisement is

of $54.50, so five

erage

the

useful

1,750,000 radios

sold. Again,

$114. Ten years later much bet¬
ter sets could be sold for an av¬

afternoon pro-

messes,

result ten times as many

f grams about

were

the
was

talking on one
■of the Sunday

were

spe¬

over

radio.

Yet only the Other

specific as possible.

day I got into
trouble by bo-

January 31. 1946

1926, 200,000

Price $25.25 Per Share

economic- panacea

one

These Shares are a part of the 740.000 Shares to be. outstanding on
January 31, 1946 after the adjustment of the Company's capitalization
by the issue to stockholders, without payment by them, of .©uefs;
additional; Share for each of the 370,000 Shares "now""outstanding.

that really works.
Industrial research in the Ur S.

between' 1920
industry was
spending $300,000,000 per year on
research, carried out by 70,000 sci¬
entists in 2,300 industrial labora¬
tories. Profits directly traceable to
this research have paid for it a
expanded

and

1945.

25-fold

dozen times
; ;

The type

emphasized

1940,

Copies of the Prospectus may be obtained in any State only
from such dealers participating in this issue as may legally
offer this stock under the securities laws of such State,

over.

of research which, is
most

applied

CARL M. LOEB, RHOADES &

re-

chanical

*Address by Dr. Compton bethe Economic Club of New
York: Jan. 21,1946.

v?,

for

(Continued

page

593)

..;

January 30,1946

CO.

THE COMMERCIAL & FINANCIAL, CHRONICLE

534

"(Special to The Financial Chronicle)

Harold W.

United

Kahn

National; Bank
Building, to engage in the invest¬
In the past

staff of

.Mr, Kahn,

serving in. the farmed pany, 1801 Grand Avenue,
serving in the armed forces.
forces, was a partner in the firm.

number of years,

;

•

\ !

Workers, Contends That Wage Cutbacks and Accumulated Griev-

the

yances,
; surge

after

Combined With Strength of Unions, Are Responsible for Upof Strikes.^ Holds Unions Are Partners in Industry and

Should Have Access to All Relevant Facts,
a statement made at Freedom House in
New York City on
25, Mark Starr, Educational Director of the International Ladies'

Jan.

Garment

This advertisement is

neither

offer to sell,

The
:

solicitation of an offer to buy

offering is made only by the Prospectus.

fS -V;.•V, f-'i VV' ^

V;-V-''■?:
'■

nor a

of these securities.

Smith

<»

nally

at¬

the

over

hysterical

President's

hate ^ born

misunderstanding. Even the short¬

Con-

Bill

veto

the

tacking

■'■Xv'A
AA
"■ /f1 .'v'"'V' "5 •'^; *•'•*;'"V'

♦

Union;

' '

V'' ir':l ?Vv':V'-.V

^'"4
'•

any

Offensive

Mark Starr, Educational Director of International Ladies' Garment
"

City National Bank & Trust Com¬

dealer in Denver prior, to

investment

for

joined the

Thursday, January 31,1946

Says Workers Are

MO,—Merrill

CITY,

Morong and Harold E. Waecker-

le have

in Sidney P, Kahn

486. California Street.

he was

; KANSAS
C.

partnership with Sidney P.
& Co.,

ted to

States

City Nal'l Bank

"(Special to The>Financial Chronicle

CALIF. ~Lutich has been admit¬

FRANCISCO,

SAN

DENVER, COLO.—Trevor Currie has
opened offices in; the

ment busines.

Two With

SI Lutich Again Partner

"Trevor Currie1 in Denver

■A

sighted

authors

that

bill

are

,of the current

now

other wars, are on the offensive
and
their
greatly
increased

Corporation "

Shellmar Products
.

nally Act and
iother restrict¬
ive legislation,
laid the cause

.(A Delaware Corporation)

strikes

($50 Par Value)

surge

accumula ted

<■

agement cooperation, we need the
recognition:
(1) * that collective

"their
inc

and

yyyyj:--:"

greatly

r ea

sed
Mark

strength.",,; \
i "Industrial

Starr

is like health, most prized
when lost, and it can be retained
only by forethought and coopera¬
tion between intelligent and farpeace

150,000 Shares
Common Stock

sighted employers and the trade
unions," Mr. Starr stated.
"It is
useless deploring
strikes.
The
right to strike for the sellers of
labor power is indispensable in a
free society. The employer like¬
wise -has • the freedom" to shut
down his plant. Can you imagine
productive work being ' done by
men -with * a; revolver
stuck , in
their; backs? The possibilities of
sabotage by. slave labor are un¬
limited. When organized firemen
and teachers volunteer to give up
the right to strike, that is a dif¬
ferent matter, but there can be
no doubt that the prohibition of
the right to strike is the first real"
sign of Fascism in any country."

(No Par Value)

from

such

may

the

be obtained
several

any

Underwriters

Share
which

state in
as

this announcement

registered

are

dealers

circulated

only

state.

such

-v

/...

Glore, Forgan & Co.

Hornblower

Hatlgarteu & Co,

Weeks

Merrill Lynch, Pierce, Fenner & Beaas
&

Shields & Company

Dean Witter & Co.

Kalmanl Company, Inc.

industrial relations,"

"Good

through

was

harmohious-relatioris-

continuance of labor-man¬

bargaining is the law of the land;
(2) that unions, as partners in in¬
dustry, should have access to all
relevant facts;V (3) that workers
are entitled to a
higher standard
of life, based upon the increased
cost of living, the
greatly in¬
creased productivity of their labor
and
the unprecedented
profits
made in wartime by business; (4)
and that this improved standard
of life will be the best preventive

against the return of the depres¬
sion years

^following 1929."

Glore, Forgan Group
Offers Sbellniar Stocks
Glore, Forgan & Co. headed an
investment

29 made

group which on Jan.
public offering of 40,000

4%%

cumulative

ferred stock ($50 par)

pre¬

and 150,000

shares (no J>ar) common stock
Shellmar Products Corp.,

the

leading

■

packaging
preferred
stock

producer

priced el $52.50 per share and

the 'commom at

'$2f per.,shar£v

;

l^oceeds^from^me^ preferred

Smith-Con-

the

was

legislation,* Pushed

punitive

secure

materials. V The

continued, "cannot be restored by
Jaxtuai'F 29, 1946

of strikes.",' "

;V'To

griev a n c es,:
backed up by

(Plus accrued dividends from date of issue)

Copies of the Prospectus

and

pol¬
icy
b y
the
unions against

A%% Cumulative Preferred Stock

Price $24 per

cutbacks

wage

strength adds, to the current ^up¬

offensive

Price $52.50 per

serious

Faced

suffering from many accumulated
grievances, the workers, as after

upsurge

40,000 Shares

anxious to disown it.

stock

with
other corporate funds, will be used
financing,

together

All of these securities
«'*

having been sold, this ad vertisement appears as a matter of record only and is not under any circumstances

be construed as

purchase 40% of the outstand¬
ing capital stock of the Self-Lock¬
ing Carton Co., which represents
all of the outstanding stock not
now owned by Shellmar. Shellmar
Products was merged with the De
Graff Corp. last November, the

offering of these securities for sale, or

as a

solidtetion of

offer to buy

any

such securities.

latter company havipg owned 60%
of the common stock of Saif-Lock-

ing;;Cafctd]i^

120,000 Shares

Proceeds

Carrier Corporation
'/

rJ; '

(

.•

!-'

S>i-

the sale of the

from

stock will not

common

accrue

the

Company since it represents
a portion of the holdings of cer¬
tain stockholders.
.

i'.'i *V"VV

.■

«.*•?

Shellmar is

leading producer
protective packaging materials
and .recently entered the plastics
a

Preferred Stock

(Cumulative), 4% Series

field.

($50 Par Value—Convertible Prior to January 15, 1956)

Self-Locking Carton Co. is

pioneer

manufacturer

egg

cartons of the self-locking cushion
and molded paper

Of the 118,257.26 shares offered to holders of Common Stock of the
were

subscribed for upon

William

Carley With
Webber, Simpson Co.

the exercise of Subscription Warrants issued to such holders of

Common Stock. The 7,113 shares purchased by the Underwriters, severally,

types.

mam

Corporation, 112,887 shares

have been sold.

(Special to The Financial

CHICAGO,
V

Chronicle)

ILL. —William

Carley has become associated with

„

Webber-Simpson & Co., 208 South
La

Harriman

Salle

Street.

Mr.

Carley

was

formerly with Bennett, SpanierV&

Ripley & Co.

Hemphill, Noyes & Co.

Co. and

Olin, Emery & Co. In the

past he conducted his

iTHfcFirsi Boston

Kebbon, McCormick & Co.1

Merrill Lynch* Pierce, Fenner & Beane

ment' business in

Dominick

Union Securities Corporation

V -Dominick &

own

invest¬

Chicago.

Admit

Dominick, 14 Wall

Street, New York City, members
..

Clark> Dodg^e & Cp»
•

•*

Eastman, Dillon & Co*

Hornblower & Weeks

•

'•'••'V

'•

■'

-*'r^

.H.'. -vy

-py~[

li.V

of the New'York Stock Exchange
■'

and

Julien Collins & Company

other

Exchanges, will admit

Adams Batcheller,

Mr.

Will

January 29,1940,

Jr.' to partner--

ship

W. E. Hutton & Co.

acquire

Jan.

31.
to

Batcheller

Exchange

mem-

bersbipapl^William pn Begcfe/jr'.'

THE COMMERCIAL & FINANCIAL CHRONICLE

{this, particular, type of security is (deterrent factor

Sees Yield

istill

Municipal Bonds

selling

At Rtcoid Low
Noting that

"fromla Jan. 1 starting point of 1.62, .the price index
'bonds of 26 large cities rose to an all-time high of

of the municipal.

1.35:

discount oL35% from

^ties ; issued : under plaps

in;;i May
year,", }Of available- bonds, ,a; steady ima n d
that ;provement: in municipal finances;
"Final quota- and a growing, realization of the
of

of rent; control.
JShould properties in this category

in any market, when the demand

begins to exceed the supply prices
are forced upward.
Thus, a note

succeed in

building up rental rates
(to a. point half, way hetween the
The investor should also bear in
(existing r ceiling price and the
tmind that in the real estate bond (rentals enjoyed in 1926-1929 pe¬
jmarkeT we are for the most part riod earnings would expand tre¬
(dealing - wjith reorganised secur-r mendously. Under the circum¬
average

.approximately

current yield basis and at

......

last

par.

of caution is

estate issues

and the

are

same

advancing at

time.

(any weakening in the price level

factory level,

one

Now that the

market has reached

>,cnnsumr stances, it is difficult to visualize

tet^at "a time of depressed/real

order at this time

when the prices of almost all real

satis¬

much higher de¬

((estate |conditions3 /As a ;cdnse^
pf real -estate bonds iri the next gree of selectivity of issues be-^
comes
necessary.;
The
prudent?'
utibrtsgat-.' the |adyai$ageJof ^ax^fe^mptib^|3^| - jqi^ce^present day3 capitaiiza^ jseveral.years.;
;(>year; end ap'$ 'Incidentally, iil Tp453/^Court| jtions. of; many of /these / publicly I A final thought: The floating (buyer will investigate with careonce
p r.oxim a ted
again affirmed the legality jfinmiced; properties represent a (supply of; real /estate
bonds has and thoroughness and seek the;
■

the May

Louis

high."

of:

S.'f Le¬

thai, Se¬

? phase

iof- .tax* .exemption:.

[drastic J-reduction from - original [declined perceptibly : in recent [advice of -■ well recognized and:
j,debJh^se reorganized Cproper- Imonths,, Qn the * other hand the [competent specialists in this field'
jfies^therefore,;areable to show (number of real estate bond buy- (before plunging blindly into the

S.T;Tax: Court held/in the
case
of'the-; "Porjt'i- of
Authority i-Bonds That There is no
distinction between such. political

nior^ Partner
;of (Lebenthal
and/Co.

one

The U

subdivisions- and

any

city in The

January '3 re^view iiofrthe

the

;-M li ni

isiibstaintial: / profits

This announcement
•

Jv: Court refused / to review .the;{de%
.f:^"Nbmherl'of icisibri;\This-means that all muni¬
/factors gw ere
f V%Wv
: Xioiils 8. Lebsnthal
responsiblefor
th-e continued
'ad varied-

£iriC<mie3rec^

states; that:

United^.States^nd^hat^^bb^fbr^

ip.al

/Bpi^^Market Federal/ip£oMe £Tax" TheSt;

despite " the jers has grown steadily larger. As (current market.

;

Authority/Bpnds iis/exempt ;froni

;

"The most
sparse

/taunidpals.

ougn

ari
a

offer to sell,

nor

'jhetprospecius'.

solicitation of offers to buy, any of these securities,

This is published

.dealers

of
betya}ft of

only

seci

those brokers

j/;

States.

NEW.ISSUE

sizeabie of last (year's

offerings

was

the Tribor-

Bndge/feJTqidirig^??pf/$llll,-£

101,769 Shares ;" !. ,': § g

little/'or no new- financing,
,($9,000. 'Tber£Is not? Ukeiy/ 0/be;
the available ;^pply^ibgjj^t^ much
,more municipal^ financing
to jrefwndings .and sales by/some
in 1946, since Targe cash halanees
institutional and State and Muni¬
prevail generally, r and' /unstable
cipal Sinking Funds,
;
prices are likely to discourage the
"Contributing Also to the con¬ inauguration of
large . scale .im¬
Was

is neither

offering is made, only by

cipal bonds/remain .exempt *from
ali;p?r^sent "Fede^ili^^e^axfes|

of«

The

Detroit

Harvester

Company

Common Stock

fidence of investors

was

the! con¬

state

being in a strong fiscal
While, the. temporary
horse - racingcombined

now

position.
ban

With gasoline and tire? rationing
■

cut somewhat into1 tax revenues,
this loss was offset; by fthe forced

reduction in expenditures due; Jo
4

tion of hangars and other
'

"It is expected that the coming

continuation in
the rise of municipal bond prices,
largely because of the same fac¬
tors that have been operating in
the municipal bond market for
some years—a dwindling supply
see

acces¬

sories; promise to require
considerable. municipal financing, It
is expected that total bond issues
for this one purpose may well exr

Shortages of materials and labor:
year will

EarVdue$1.00jWsharel|3jH8sSiift

For the long Term,
however, ' the
outlook
is
for
sizeable municipal bond. issues.
State
and government officials
are planning the erection oEmore
than 6,000 airports. Acquisition of
title, land preparation and erec¬

provements.

tinued improvement in municipal
finances, yirtually every city and

;

Copies of the Prospectus may "be obtained Jrom pnly such \pf the r brokers
securities as

Ore licensed or registered

dealers i%

iti the several States.'

I,,;

ceed those for highway construc¬
tion.
"On the whole, present
of

municipal bonds

the future with

holders

Reynolds & Co.

look to

may-

;

equanimity.".

Alex. Brown & Sons

Visualizes Stronger Market
In Real Estate Bonds

•

Wattling, Lerchen & Co.

Sutro & Co.

''*}'*

$ I'L'

jlV

p', V

.»1

J..

'•

According ,to H. R, Amott, President of Amott, Baker.^ Co., Inc.,
the performance of the real estate bond market during 1945 and over
the past four$
years had Tmf i market has reached its highest
doubtedly point since the period preceding
equalled, if the depression of 1932-1933, there
not surpassed, are many factors w*hjch indicate
the record of that the present- boom will- con¬
any
oth er tinue i for an extended period:
single class of First,
many
bondholders today
,,

securities.

all

own

of. the underlying property. Such
statement, the investors obviously stand to bene¬
Amott - Baker fit
directly from increased earn¬
Realty Bond ings and the higher values that
Price Aver¬ are
being assigned to equity hold-'
ages reveal ings. Second, we are currently be*
some very in¬
set by one of the severest housing
teresting sta¬ shortages in our history. Scarcity;
tistics.-

1. Real estate«bond

nearly

if
H.

Amott

prices have
<enjoyed an
Uninterrupted s rise ' in
market:
value for V41; consecutive months,
i
f2. The average price of the 20,0

commercial
as

circumstances # he construed as an

solicitation .of fin

offering of this Stock for sale, or as an offer to huy} or as 4

,offer to huyy any of such Stbch. The .offer is made only by means of the Prospectus*
'

January 31,1946

part of the equity

support of this

This is under

space,

severe/

This

factor places particular

/l/::,--■!///.
;'r

;;

21,l70|Shares^,/

.,
'■ ■■■

;

-'A'S

Taylor iptrument Cornpanies
Common/Stock

also, is
scarcity'

emphasis:

•//'

($20

■
.

par

value)

■

the replacement | cost pf.
property and its relationship to
the price at which existing: build¬
ings will be evaluated. T&e stpg-:
nant pace at which materials have;
issues that make up the averages become available to the building
advanced from $302 per $1,000 industry is a ? clear indication of
bond on Jan. 1, 1942, to $644 per tbe unlikelihood that we will have
upon

$1,0,00 bond on Nov. 30, 1945, an any
extensive; construction
of
jncraasex>f $342 per bond or 113%. large commercial properties in the
\ J3. Jbe Nov.-.3.0, 1945' average immediate future.; Accordingly^it
price of $644 per $1,000 bond cpm- will take »time to:eliminate the
pares with a depression low fig¬ present .day ,deficiencies. in .housure of $187 per bond reached in ingn and;/ commercial
iquarters.
1933. The, increase of $457 per Third,-The fact that (liew buildings
bond is the equivalent of a gain eventually, ydll/be^cpnstru^
Of 244%/- v- . •
^
; -7 T,. UiUch higher;^
^nd/willilae
-

of tht frospectus

may

heobtained from uny pf

thefeperaJ mder?

Malm' in securities and in which such Prospectus may

;

4;^hb /^nv. 3p, 1045; price of Maintained
$644 per bond is $194 or'43% level than has been our ^experi¬
higher than the top price reached ence: in the past suggests "that
in the business boom of 1936- today's rentals/' shackled, by
gov¬

The First Boston Corporation

•

1937. v

©:3:/V:;,--'///;/?^T

1^ 53 The

Nov.

30,

1945 price of

ernment controls, will and must
go higher. *
- - - :>
,
•: j
The present imlder of real -es-;

George D. B. Bonbright & Co.

Little & Hopkins, Inc

$644 ) per:: bond is $363 or 129%
above the low .of the . market
tgte bonds/ should malice that in:
reached at the .close of 1940 in the
spite of the: very substantial in-1
business recession that / followed
crease in the market value of his
the short lived 1936-1937 boom.
,

Although the real estate/bond

investment in

^recent u^j^stthat

Sage, Rutty & Co., Inc.

THE COMMERCIAL & FINANCIAL CHRONICLE

536

Thursday, January 31. 1946
s"

the highest in the, history' of the

per share the previous year.
Two: dividends aggregating::$1.50
per share were paid on the com¬
mon
stock; leaving the. sum of
$569,334, which Was added to sur¬
plus account On Jan. 2, 1946 a

$5.40,

Missouri Brevities
A

special meeting ^ stockholders of

.National Candy Co., will

proposal to consolidate this company
with the Clinton Co. of Clinton, Iowa, a subsidiary, tl\e resultant cor¬
poration to be known as Clinton Industries, Inc.
Application will
be. made to list the stock of the new corporation on the New York

be held

Stock

Feb. 4, to vote on a

Exchange.

stock of $1 par

value, will be re¬

present

quired for distribution to
"stockholders

stockholders in de¬
cisions to make both companies
Delaware corporations, in which
State the new organization Will be
incorporated.
The ; Clinton Co.
was
formerly
incorporated
in
Iowa, and. the National Candy Co.

proved

capital

tion, : 630,465

the

present

two

cbmpanies. National Candy owns
89.8% of the outstanding stock of
consolidation
proposal
provides that 578,445
^shares of * stock in the new cor{potation will be issued to Na¬
tional Candy; stockholders on a
!share-for-share
basis, and that
The Clinton Co. The

leach

tingency reserve was set- aside;
as the present fund of $2,500,000
was
deemed ample for all re¬
quirements.^ 4
Earnings before

income taxes
amounted to $4,062,442, and after
provision of $2,850,000 for esti¬

| The public offering, of 100,0.00
Jshares of Clinton Industries, Inc.
:would be made as soon as prac¬

?after registration under the Se¬

stock:

ferred

this sale will be used to retire a

indebtedness in-

$2,500,000 bank

dividends

regular

were

nor

349 to the State

offered in dimited quantities.
the
year
proceeds,' -scarcity

The

judge's

proval in
December.

gram- gave

relatively

per

file, such

last

Berkshire Fine Spinning pfd.

Kansas City Pub. Serf. pfd.

Chase Hotel vtc

LaPIant-Choate

the

increase

of money

— ■■

Collins Radio

Missouri State Life

Consolidated Dearborn

Old Ben Coal

Ely & Walker Dry Goods

Puafa

Calf Public Sendee

Reda

Hearst Consol. Publicat'ns A

■'■[r

■ -if-:

and

compared with $1,-

Vice-

President.
a

were

million

"rumiing

dollars

stockholders

The

Lindell

St. Louisi Mo. have

25%

increasing'

capital from $400,000 to $500,-

the

000:
Landis Machine Cot;

couple

in collections

:hrough the hopper"

lave

cial

loaning

officer

*Tncome md^sales taxes,

of St. Louis

for

the

York, Ohio,
Pennsylvania
and

Michigan,
Janson

Mr.'

the

attended

School

Technology
and the Clever

land

Law

School.

Trust

tan Company in

He'

Company.

1926.1

;

Hoffman and Pegram Join
Staff of C. A. Evans Co.
{Spedal to Th» Prt»*NciAt Cbronxcis)

GA.

ATLANTA,

have

Jr.,

CuUen J.

—

Hoffman and Robert

B. Pegram,

added

been

the

staff of Clement A. Evans & Co.,

Inc., First National Bank Build-]
ing.

Prior to serving in the U. S.
was

First National Bank of

with the

Morganion

and the First National Bank and
Trust Co. of Asheville.

armed

the

Mr. Pe¬

who has also been in the

gram,

forces

First

was

National

formerly with
Bank

in 'At¬

lanta.

interested in

e are

the usual

Illinois Terminal

botl^dste^

Railroad Co.
Common Stock

DISTRIBUTORS

UNDERWRITERS

Metropolitan St. Louts
COMPANY

NVESTMENT;SECURITIES

718 Locust Street

Saint

456 Mm,,

joined the Bank of the Manhat¬

pfd.

Louis

I, Mo.

Central 8250

TRADING

OUR

Building

t. D; 208

DEPARTMENfS ARE

St. L; 499

ACTIVE IN MUNICIPAL AND LOCAL
CORPORATE ISECURITIES

Garfield 0225 W
L. D. iilSil

St. -Louis 2, Mo.
■ '

later absorbed;:by the'

was

Cleveland

SCHEHCI4, LIOITEH COMPANY
Landreth

career
started at the
Street Bank of Cleveland:

Pearl

Pump

tiff Bell Teletype

L. Janson'

John H;

H H i f>

banking

1946 of 25

year

each, payable at

cents

the

States of New

declared four quarterly div¬

idends

the last

over

week-end.

Alegre Sugar

Textron

4-^

Kaiser-Frazer

ployees
of

commer¬

Army, Mr. Hoffman

stock dividend, thereby

Smith said government em¬

Suburban Propane Gas

controlled

•atified the proposal to pay a

:.% ■-<

Presi¬

dent

St. Louis Public Service "A"

Illinois Terminal

record

Louisiana

years.

Trust Co. of

collected from

The total amoifnt ocllected as;of

Mr.

Mississippi Valley Barge

ten

of $1,700,319,

Dec} 29, 1945 was $68,5 IB,319, and

Chicago & Southern Airlines

$44,373,030

596,062 in 1944.

greater

Assistant
Vice

Rev¬

pected to show net 1945 income

He attrib¬

income and ;sales taxes.

of John. H. L,
Janson from

share,

by Kansas City Southern, is ex¬

than

Amount

the

Arkansas Ry company,

"Last year's total was $61,156,-

Kansas City Pub, Senr. com.

com,

22-million-dollar average for the

ended

uted

Berkshire Fine Spinning

compared

$7.02

1944;; but Were well ahead of the

common,

$9.47 a

in 1945 dropped nearly 20%

under

record high of

168," Mr. Smith said.

Goodhue, President of
Manhattan Com¬
pany, New York,; has announced
vue promotion

which

for 1945

1944, Mr. Deramus said.

enues

$70,500,000 for the
pee. 31, 1945 accord¬
ing to Forrest Smith, auditor, f

—

the

with $4,418,162, or

formal order confirming the plan.
The income of the State of Mis*
run

of de¬

amortization

$5,668,913, equal to

was

rail* share

issue

then

will

also

Estimated net income

ested parties in the reorganization
and if the results are favorable,

Moore

premiums oaid

projects which was accel¬
erated by the ending of the war.

appeal is taken, the ICC
conduct a poll of all inter¬

Judge

the result of the charge-

Interest charges were cut.

appeal.!

appre¬

fense

announce¬

of the

directors

taken

and

opinion

F. Abbot

the Bank of the

Georg i
cut

were

the retirement of the funded debt

year

Sold

ciably
nffs

taxes

Income

formal

After that

the

ment,

—

revenues,

Com¬

30-page

souri will

Bought

less

the road a substantial
net profits Respite r
sharp drop in grossWilliam N. Deramus,

President states.

Interstate

By Bank of Manhattan

increase

Al
ol

road voted to appeal from the or¬
der.
They now have 20 days in

will

stock

common

the

over

Nonrecurring credits taken by
Kansas City Southern Ry in 1945
in connection with its $60,000,000
bond
and note
refunding pro¬

approval
was
handed down Jan. 23,
He
had announced details of the ap¬

pre¬

$3,80 compared with

jcurred by National Candy in re- amounted;: to

>'•.

v-- i

problem.

commission.

merce

earnings

the

become

$1,042,143

1944.

for the Missouri Pacific RR. sub¬

which

the

should

and represented

increase

mitted

1944.

:'.

John Janson Promoted

•

compared with i .7 %

approximately $2,025,042,228 for 1945.
Income taxes; brought $12,419,-

level

and less of

over

the total

This represented a total volume

the

13.7%

of sales of

appreciable change
of goods available
of prices, state
Ernest
W.
S t i x
President.
Throughout. the year: there has
been a
perceptible. shortage of
desirable merchandise,—-thai situation is gradually improvingf and
various' items that were practi¬
cally unobtainable are now being
was

1.4%

for cost of collection in

declared, pay¬

in the volume

the

After payment of

$1,212,441.

1933. Proceeds of

earnings

net

taxes,

mated

ticable after the consolidation and
curities Act of

there;

and. cost

collected

1, 1946.

ended Nov. 30, 1945
reflects earnings attributable to
wartime Operations, and while
both sales and profits show de¬
clines; the year was not unlike
those which preceded it. No con¬

will re¬
of $6 for

cash payment
share converted.
a

Feb.

increase

1944

George H. Moore, United States
District judge, formally has ap¬
proved a^plan of reorganization

statement

annual

for the year

these

addition,

shareholders

•minority

844

While the war ended in August;

of . the
Rice-Stix Goods Co. of St. Louis

Jriew shares for each of their presr
ceive

able

merchandise

The

^minority
shareholders in
the
J Clinton Co. on the basis of 17
shares.

stock was

common

in New Jersey.

|52.d20 shares will be issued to the

«ent

Collect," it was said. .Sales taxes
for the year 1945 were $40,500,-

dividend of. 75c per share on the

•

According to Richard M. Moss,^.
■ :
' ^
Chairman of the Board, plans call tirement of its. preferred stock on
Aug. 15, 1945.
for sale, through underwriters of
Preliminary steps toward con¬
100,000 shares of Clinton' Indus¬
tries Inc. capital stock. In addi¬ solidation have already been ap¬

State,! also, cost less per dollar to.

-',v ti

j. W. BRADY & CO,

b Co

Stern Brofes
Member* Chicago

Members St* Loui&Stock Exchange

SECURITIES

Avenue

1009 Baltimore

WHITE & COMPANY

INVESTMENT

Stock Exchange

KANSAS CITY 6,

MO.

Long Distance 93

Teletype ICC 273-4

411

NORTH

ST.

PRIMARY

MARKETS

Topeka, Kansas

Omaha; Nebraska

LOUIS

Teletype SL 165

7th

ST.

MO.

Garfield 3348

BANK 6- INSURANCE STOCKS
••

»,

•

:•

• •

•

••

OF THE

NATION

TRADING MARKETS!
Commerce Trust Co.

'•

M-

SAINT LOUIS
TELETYPE'

CENTRAL 0282

1/ WO

1016 Baltimore

SL'477

Bell
i

Private wires to:

Ohicago, Kansas City, 'Los Angeles and New York

SIS

:B AU m. "Bern hism'iff

t'4 -4

MISSISSIPPI VALLEY TRUST BLOG.

SECURITIES

Central Coil & Coke Corp,

Tt'r

Westo wiftJekCdi

•■ "

iiiPfc

COCA-COLA

Pickering Lumber Corp.

Long-Bell Lumber Co. i

444

'V"?

j-m

ALL MIDWESTERN and LOCAL ISSUES
■;

*>■ "

v'.
i

Teletype—-KC 472-3

Strauss Bros.;
New

;

York and ChicafO

White & Company
Pledger
St. Louis..'.'.;'.Los.
.

A Company
.

1932

319 NORTH FOURTH ST

Angeles

Established

Phone—Harrison 6432

Private Wire Connections Tor

wm;Ld

Avenue, Kansas City 6, Mo.

::S.?'';^0Ps

;;
.

Teletype SL-68

«
,

Volume 163; .Number 4460

3.60% preferred stock, already on

contrary

file includes earnings for

seeking outlets will become more
difficult before it improves. There
is no apparent disposition among
corporations to take on debts by
ways of raising new capital,
Rather it appears that investors,
who are in a position to do so,
must develop a taste for equities.
And even here the fare likely will

one

which ends
V

slim since most seasoned

porations

The

"upper-crust'1

the

whelmingly
in

spite

yields

cor¬

bentures

goes
on.
The buyer has little
choice but to "pay up" unless he
is

filling to sit back and let his

S. Treasury

push

issues

municipals

persistently

are

caught

surprise to the investment

reach

redeem

issue

bonds, due 1986
The

all sold

were

month

retired

Series

for-bids

and

One

record

this

week

market

four

Commission.
The

undertakings

;

late

1,200,000

the

veritable

should

its

amend

covering statement

take

over

any

Roche & Co.

name

new
:

partnership and the firm

ing;*A

Offices are in

National Bank Build'-.

The

',*■

;■

*•

•

week's

last

registration

covering the
149,883 shares of

debentures and

Since 1900

Through misunderstanding in

column,

"moved rather slowly."

was

On the

•

-vV/I#

y;...

between

i'f-■

Dealers

UniferwritersDistributors

stated that the earlier financing

Specializing in

ST. LOUIS BANK STOCKS

of new

dearth

in volume sufficient to

UN DERWRITERS - DISTRIBUTORS

G. H. Walker &■ Co.

money

pressing

for

A'V

••

•

invest¬

•*

/■'

Members

Certainly the President's

¥:

budget
message,
indicating a
further'deficit for the next fis¬

'.■{

•

■

Retail outlets for

■

Exchange

New York Stock

t§pfg"

St.

Chicago Stock Exchange
Commodity Exchange, Inc.

Louis Stock Exchange

(Associate)

York Curb Exchange

New

cal year^ is hardly suggestive in

OVER-THE-COUNTER

that direction.

broadway

matter of fact it looks

though

lot

the

-SECURITIESif

'•

investor
>;:■■■■:. ;v>'c;>"

" '

•

■

!':v

...

llllYlllil'

l»

II.'

mil.,

mil I

mo.

York and Providence Offices

'»•
I

louis

Bell System Teletype SL 84

Direct Private Wire to New
•.

st,

locust

Telephone:. Central 0838

..I,

Ml,'..-,

II I

„,ll II.

l"i.

I .Ml I ■

t.1.

Peltason, Tenenbaum Co.
Landreth
Bell

Building, St. Louis 2, JVIo,

Teletype

S t, Louis Markets

•

«r( W8*'

Newhard, Cook & Co.

Central 9626

SL 48S

L. Dp 240
i'&f

' 1^

vA)-

•'

—Members—

iv-

Chicago Stock Exchange

NeW York Slock Exchange"

: ^1 v.

New

T-T

Yo*kAp%Exfchange ■!( Associate)

Lou.^ Slof% Exchange

Local Bank Stocks

UNDERWRITERS and DISTRIBUTORS

and

I; General Market
INSTITUTIONAL and CORPORATION
Securities

<fv-'

iV'./'i' r:«''t •*

•

•'

•

^;'«P

7-'$V"^ =:<"

' <■

ST. LOUIS 2, MO

•:

r'OV.^v :.',A *'V

>J(

•

New York

Correspondent, Clark, Dodge & Co., 61 Wall Street

O. H. WIBBING & CO.

Members

MEMBERS

St. Louis Stock

^'-'

FOURTH & OlIVE STREETS
01IVE
OURTH

M^ \i.:Vxv
'•

**'

TRADING SERVICE IN ALL LOCAL ISSUES

Underwritersand^DistriButgr^

STOCKS

BONDS and

Exchange

ST.

LOUIS

STOCK

EXCHANGE

'1:;;

Street, St. Louis 2, Mo.

319 North Fourth

Long Distanc« 71

Western tinlon Phone

State and

Teletype SL 158

Municipal

Bonds
162 COMMON STOCKS
BOND

WITH UNBROKEN DIVIDEND RECORD
'1'1 ;

DOS

OLIVE

^vi\.-.v K'-'N-,vV.'vt'''

fU;V''-:V-'vv

STREET

\y.''

•

Years

15 to 97

'■

"All Listed" oh "New York Stock Exchange"

St. Louis 1. Mo

■

'■

•

Copies Available

•

'•

- '

•

Request

T«lephone ^CaViield -^14
•

Bell Teletype SL"
vd/'^U; fwu- f ■ .i

y'. -iH-

'.V

•,

vsMembers of

Direct

———

ir"''Si-;; !.'?£:■•

'-:X

•

New

York,^ Chicago jind St.- Louis Stock Exchanges \

te.

y'A\ U''S

■

8th

V-1

St.,; St. Louis 1,
j A
'

1 T-Vv'!**/

j
t

••

Company

MISSOURI

:■

Mo./^
r

Telephone hf
.CenWal 8400-<;

NEW YORK;

:f
•

i"-' ''"yt.-* 1 ' »■ -' y'

t":\Af ji! jw.V— ■*'*>

Wire

id York

j
7~—r-T.

Trust

stiOmaf i

iswaldheim;^>latt frcor

80 !

North

—:—:

'COMMERCE

MERCANTILE
—-B*nk.»»d /i

,.1*

VvV»<*.
•

DEPARTMENT

'A''/-'c"oT/'.W''>■

v-v-u.',

•-

•

•:' *'f\ •

/•-*<« r*, ««-••««

'• '.5; '

-.•''?+.*:

vsv

'v"- .'•**«£•'':iS&jtk-k-tiY

>i*V>.fV**1''!*-vL'S'

CORRESPONDENT

>14 ' WALL

S.
T.

has been changed to Emer¬

the Capital

and

David

admitted

has

Roche & Co.

son,

capital

TEX.—Everett

total of

nothing to indicate
early let-up in the volume

ment.

Roche to

certain properties

AUSTIN,

Emerson

stock of Higgins Inc., formed to

ago.

file with

the SEC to reflect the change.

absorb any appreciable portion oi
the vast reservoir of idle capital.

There

Co.

Now Emerson,

stock

new

the Young

$1 par .common of

Radiator

of these equity
will
consist
of

largest

cheap money, to keep down the
cost of carrying its huge debt
securities

Regal Shoe Co., and 100,000

issues placed in registration with
the
Securities
and
Exchange

the Government's commitment to

and

on Tuesday the same bank¬
ing ; firmi ■ Van Alstyne, Noel &
Co., was listed as the head of
underwriting groups which are

slated

stock of
share's

shares of $1 par common

;

shares of $1.25 con¬
preferred stock of
Biscuit
Corp.;
425,000
$20

Burry

way

set

was

included in the list

100,000

are

vertible

Day

Indus¬
liquida¬

Higgins

statutory

■■;.::••r.^Vv-V-

The others

time.;

the

now
,

The issue to be

part of the

was

tion.

when

mature

would

1986.

new ;

Series

offered

likewise in

tries

rapidly, but

in good

Four In

Something

May 1 next.

issue

new

would

mid-

about

market

decided

and

high ground with gradual whit¬
tling away of potential return.
Investors

for

quite

move

businesses

other

quickly.

537

monthsvof; last year, the. com-;; $125,000,000 of refinancing carried
pany,
according
to, reports,
through marketed several months

continue
into

Railroad ' Co.

Pacific

Commission

merce

week, but because of a letdown
in earnings during the last two

of the market, name¬

top-grade

? Southern

has filed with the Interstate Com¬

This issue had been expected

Jt does itot look, hawever, as
though such relief is in early
prospect.
Quite the contrary,

ly' U.

pos¬

attractive opportunities.

cream

was

authority
to issue $50,000,000 of new first
mortgage bonds. The purpose is

capital remain unemployed
in the hope that time may bring

the

2^4%

A Correction

industry which was pretty much
primed for the undertaking,

idle

sibility.

the

and

marketed

2%s of 1961, however, did

not

behavior

bit of

time

the

Ltd., to forego public offering of
its projected issue of $15,000,000
of 2%%
debentures came as a

"sellers' paradise"
the unprecendented

thinningf out of

whisperings around that a shav¬
ing of the rate on the de¬

Decision of Philip Morris & Co.,

The
».'iA'-'-'v/. „o,.- *.'v.

x»s*

1996

were

turn of the year, there had been

Philip Morris 2%s

in¬

over¬

■'

Because

cash for their needs.

vestment market continues

year,

in March.

Issues Of 3%s,

both

due

1986,

the investment market since the

well supplied with

are

of the fiscal

.».

•

months

seven

the first

THE COMMERCIAL & FINANCIAL CHRONICLE,

STREET

f-,•

i. *■

Thursday, January 31,1945

^£.0^V.v.;:'>. .p.-..• ■;/_v-.\-

ipp.:

VV :>V::>

■■■'V

'• V;\.\

V' /'

fill

14i|||;

■

's'

'M:?feKNW^V0:i<

r''-

yolume 163

'Number 4460

INTERNATIONAL
ir * I

\k.'

i_n

BM^ESS^M^
^

-«*

<u.4

■*«

1,1

-a i

cskjj

>„i*

•<*•

*•?£

-*v.iy*

* * *

W*?.

THE COMMERCIAL & FINANCIAL CHRONICLE

UNITED STATES STEEL

CORPORATION SUBSIDIARIES

vl
Thursday, January 31, 1946 v

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume^ 163 i! .Number 4460
^■7'7'7;v a

541

After The Turn Of The Year
77

HERBERT

Memphis* stands at the? threshold of' greater growth;; 7 interest rates to rise that much with such n large"govern-t
a strategic location. The Mississippi River offers
7 ment. debt.;:,However it does, not seem unreasonable* that",

ABRAHAM

It is in
■! •;

/'/

V President', The Ruberoid (Co.' ', '

C^ebull<^^
virtually

addition

^'^'V , 'thdhp;' transpbrtatiqnTby:/barge Vibes/ toman# important ;
tb7havihg( % centers of the country, and important developments are

interest

rates could rise as we come. into, a^
business,
expansion.'7':7':i;-:; :^

plant reconversion problems, has entered;-; expected to continue along the river. A net work of air
The volume of sales of new business following Worldhighly, important factors in its favor.
lines connect the city with all major locations in the 7 War I increased
tremendouslyIt is* not to be expected;
huge backlog of home recountry; ;It. is also;/the hub of rail lines radiating in all; 7 that .such increases will ofccur at this time but certainly;
r- pairs and ^modernization acdirections.
- ■
7
4
f
7'
life insurance has not reached the Saturation point by a:
V 7 cumulated ! during ? the ;> war
/City.taxes are at low levels, and municipal authorities ; long wa,y. / In? spite of the fact that the 'average increase!
i years.
*'
! i'
1 •'
indicate that future city improvements will be On a
in life insurance protection per family, has
increased;
2. The need for horned by many
pay-as-youTgO basis. Industrial and'residential users of 7 $1,000 since the outbreak of World War II, the protec-i
V; new . families and returning
electricity enjoy low rates on account of city ownership 7 tion carried by the average family is only about IVi years1
I7..• service men.'
V "V
and purchase of electricity through the Tennessee Valley
income.
It is much better than it was- but it still Tails?
I
3; 'Substantial; savings accumuAuthority system.; All in all, business conditions should 7 far short of being enough money to carry the children off
j : . lated during the war years,
equal or approxinftnte ihdices .established in 1945;;
the average family through grade school, let alone highno

1946 with three
■"'

«,

„

j V

a goodly portion of which may
]be expected to be ..spent; for

j,7the •foregoing;,:'* f;W7.' :7
Current

indicate

estimates

President, The National Cash Register Company

that

>;Tberdemahd nvhich exists for casli registers, dcdotiht;:'
ing; machines and t adding machines;,Indicates" that 1946

these three factors add up to a po¬

tential market for 1,000,000 or more

will; see „the/ greatest production in the history? of The
National- Cash Register: ComRany^, :;^■ V;7!7.7 v;; 7
7

annually over the
next
ten• years—an 'annual; rate
greatly exceeding that of any year
in the past.
.......
As a result of the price ceilings
Herbert Abraham
on many building products, coupled
with advancing wage rates and the increased cost of
various raw materials and fuel, the problem of main¬
taining a reasonable profit margin has become increase,
ingly difficult. To help solve this problem, three major
plans are being followed by our company.
*
:
:>
?
Intensified; research1activities, also improvement/
and mechanization of factory equipment to attain?
■J.- the maximum: production in "tons per man-hour'l
with; the minimum of physical effort. •
dwelling units

Looking beyond the current year, we
anticipate a period of continuing de¬
mand which Will assure production
considerably above pre-war levels.
Plans for production in 1946 have
been made upon the basis that the
demands upon the factory will be
approximately 75% greater than be¬

stepsbeingtaken'at pur vari-

and shingles, since the demand for tthis
material far exceeds The supply/ 7

important:

raw
'

wherever possible, with¬

Curtailment of expenses

however, sacrificing, operating efficiency or
tlm quality of finished products^ »7^-V'W?7VV
for both the immediate and long-term outlook, in

ment

out,

7
1

our

V. J. ALEXANDER

V/fV

I BusinC^i Conditions in this territory werevai
Iiigli
level dating 1945; The reconversion problems were not
as

serious here

in other sections of the country. Some

as
.

have shut down, but
"TVother7 plants /have changed tover
quickly to the production of -con-;
sumers goods.
The returning servwas

.plants

7 ice memhaye^aided: th^etnplo^ehi?
Tj/probJe^VM
.

have

accentuated the acute housing

shortage.

>. tion

limitations.

tributed

7: that

v. j.

Alexander

provide

;

additionally
,

oa?tment store sales will continue at

and

additional

high levels

De*

ness

hard
available.
as

; consumers

will materially add to the volume of wholesalers.

^ Banking facilities

life

;

ample to take

the postwar period.

Bank deposits will probably remain ;
at a high level.. The demand for credit from commercial
borrowers will, no doubt, increase in order to carrv
larger inventories and receivables.

Personal loans will
again in

also be in demand when consumers goods are

the market on a large scale,

7:7

;

progresses

with

it.

business

which

the

1945

1946 looks

too

Company
continuing

The .investment side of
is

7«,

in vast
to

prefer the ^beverage of moderation' even

1946.

public" relationsstandpoint,; brewing has
advertising of the
in¬
fluence in establishing beer as a normal part of American
family life.
During 1946,7 this campaign in national
magazines will be expanded. And the theme of the ad¬
vertising will not only continue to provide a good wholesome background for the industry, but will go on sell¬
ing beer actively:
v
"But more than. advertisingj the: conduct of the indus¬
try itself during/the war has gained public confidence
and respect.
The active cooperation in supplying, beer
to the armed forces, the widesperad activity of brew¬
eries in public-service advertising on War Bonds, Red
Cross, Community War Chests, Fats and Paper Salvage
programs, and other war: activities, have all been good
public relations. Many, people who until the war werfe
opposed to beer have been impressed by the high-ethical
standards of the industry. 7 This does not mean that the
been in abetter position.-. The

Drys have abandoned their undercover campaign to blot
up the country, but it does mean that among the reason¬
able bulk of citizens who are responsible for what is
called 'Public. opinion,'

1946777l7;7 77.
our

busi¬

different story. 7 Interest
rates have continued to decline and/;

ness

anything; I think
goingta buy aTot of^

mean

United States Brewers' Foundation has been a fine

The life insurance busi¬

experienced
-in

care of credit
needs of industry and local business for reconversion in

are

erate in

early yet in 1946 to predict what will
happen but so far the volume of new

goods are
Wholesale trade should also be aided by large quantities :
of heavy machinery and agricultural implements.
As
additional supplies of these products are available, they
lines

ness follows the same trend as sav¬
ings. 7 If savings are high, the life
insurance business is good.
This is
the same as saying that when busi¬
ness is good the life insurance busi¬

boom to lumber manufacturers and

beer$; goes on u^abated./i This-pi'ocess will even'uccel"*

never

years have to be spent to pay living

dealers in.this. area,: as- Memphis is one of the ' largest ;

hardwood manufacturing centers in the country >
iRetail trade exceeded; all previous levels in 1945.

•

"From- a

Very good, providing we can get the
strike situation settled before all of
the savings built up during the war
expenses. 7

"On the other hand, those brands that; yielded to; the
temptation to make a killing dur^
inig quality to the thinnestTbeer the?tr^fic/W9ul^I>car^
will pay the penalty/Tor; their lackaqf^ visibhi / It Ts/na
secret that fh::every tnajor mei^t:inferi6r7bwrs h
already begun to back up and slow dowh to a marked
degree, while at the same time;; the demand Tor; quality;

year

though the supply/ of liquor eases. 7 v ? ?
/ '
J "
?,/
:
^These factors make the btitlook: bright for brewers
who have maintained the quality of their beer.
Their
brands wiH cash in oh? the increasing/public/demand: for

•

soon as labor and material; shortages subside. . Several;
large industrial plants are scheduled for erection during
the coming year, 'The revival of building on a large

scale should prove a

continue

business prosperity. If this is true; the
certainly one of great confidence

HARRISON 1L..AA1BEB

little rocky 7

the tightness of the hard liquor supply, which
numbers of people turning to beer. I
think it's safe to predict th^t many of these people- will

the insurance department and the investment
department.
As to the insurance department the

the year unfolds. /
"From - an: industry

resulted

^ ATife insurance company is composed of two parts—

needed farm •equipment.
f "
The. critical housing shortage con*
; 7
,7^
; tinues to be, acute;
This shortage,
will probably; continue tof /sometime; however, • realr7
tors and builders are planning large addition units as
,

now, was

President, Berkshire Life Insurance Company

agricultural manufacturers will

be ; able 7 to

•

;

?■

7,
.
4
Edw« J.Anderson.,
"Another Influence that helped our industry, through
the; ?war years and which should continue to benefit: us

used: in all types of business, it has often
that the; sale of our machines is something

in;thefttjture^ -.7.777,7'..•7-

con-

Company

are

said

Brewing

gin to find the going

service men

immediately ahead, an expanding demand
Cash Register products. Because our

barometer of

Goebel

beer in 1946.

current indication is

greatly to the income of
; farmers with cotton continuing to be
V;the largest cash, crop.;; It is hoped
.

These>men^are

National

products
been
of

The diversification

'7 of farming in this territory has

all

■

letters which, brewers all over the 1
country have been receiving from//

;

in the years

prices

constantly :

•

on our factory payroll which is 1,000 more
a year ago and well above
peace time employment
in any other year; ' *"
-Vr" •••:
/
'
On the basis of a careful appraisal of all factors which
enter into a determination of our market we anticipate

fox1

will V. depend. largely upon
.7 governmental controls^ and produc7

C.,AHyn

imperative. In addition to this,

product develojpmerit program insures the continued

than

V 7? The agricultural situation is some.; what uncertain at this time. Cotton

"1946 should be

■

employees

•

standpoint, ? beer is in a fine position to continue ;
the increased sales enjoyed during ;
the war. For one thing, millions of
GI's, who have now returned or are
7. returning home, have had ■ abundant
opportunity in camp and overseas, •"
to sample beer and acquire a; taste 7
; for/it.
But whereas during their ;;
: service
in the armed forces, they 1
7 were able to get their beer only at 1
7 irregular intervals and in Uncertain
quantity, they can now buy it freely, ?
whenever they want it. Andr if the

At the present time there are approximately 10,000

.great year for the brewing -industry
as a whole/' declared Edwin JV Anderson/ President of>
Goebel Brewing Company, Detroit, Mich., "but I antici¬
pate that some companies will be->
7
as

;

steady progress has been made since V-J Day and it is
expected that the work will be completed in the early
months of 1946. Production is now running at about three
fifths of the total; projected as normal production when
the factory has reached full capacity after reconversion.
However, this projected total is considerably higher than
pre-war production: -

Co',

'77;

.7;

;

Our problems of reconversion have been serious but

President, Union Planters National Bank & Trust
-

factor

business

overseas operations which have always produced
considerable part of our business have been affected
id varying degrees by f he War. In some cases much jre;
building will have .to be dpne and we recognize that in
Our; approach W future Overseas distribution? there ;will
have; to be great flexibility in our thinking and in our
methods. •

•

prodtictiotl can pricOs be held at levels thai wilt *
buying.

Our

employment and wages be maintained at high; ?

stimulate

increasing service to business.

levels, and only through increased efficiency and econ¬
omy Of

immediate

volume

opinion, of' the• benefits; Of life insuranceincreases daily. It is to be hoped that the whole popula¬
tion of the United States become fully informed? of- the
7 benefits and of the good which life insurance does in;
the economic life of our people.
;
*
'r
'.Public,

.•

deyeldpment of / machines whicliv WilP b®^

opinion, the answer, not only for building but for;
all industry, will be found in one word—production. For
only through a constantly expanding volume of produc¬

tion can

the

EDWIN J. ANDERSON

greatly exceeds any previous record
in a similar period.
7 A longer range factor is the everincreasing need for records in all ;
types of business and the fact that |
higher operating costs .and lower
margins make cost deducing equip¬

ous. felt mills to increase the production of dry
Vfelt utilized Tir the/manufacture oT asphalt roofings

war.

this

which has been placed since we have
been in a position to accept orders 7
without restriction, a volume which

Construction of an additiohal asbestos-cement man-.

77 vufacturingunitralso

;

the

fore
in

•

Life insurance must doubletin:volume from its!
present approximate $155,000,600,000 before the average
family has enough protection to carry the children?
through to that' time in life, when they can provide for;
themselves.
' * !
*
'
school.

S. C. ALLYN

the. brewing; industry - has

today

excellent standing. 7; 7
TV •" T
77 / ;. I ;V
"In fact," Mr. Anderson concluded, <4if there is any; note
of caution for 1946, it would be in this last fact. The real
ah

competitive battles will begin in 1947 when the current
It is our 7 expansion plans of so many brewers will be complete.
71 think it is of the utmost importance that the industry
opinion that prosperity cannot con-; ;
tmue
continue to carry on the high operating standards set
on pauper interest rates; Our greatest
all-around prosperity has Occurred in this country with *
during - the, war.">77777 7/7 7 7%;77/; ■* 7
1 ■ - ■
' -7,
interest rates: at from 5% to 6%.
7"
; (Continued on page 542)
We cannot expect
»
v
no

Amber

one

knows

reached bottom

whether
or

they have

not.

*. 7 ;'/
indefinitely
.

Business and Finance Speaks

gypsum^ wallboard and lath plants.
Purchase of two;
steamships, with charter arrangements on others, will
give us ample gypsum rock from our Nova Scotia quar¬

(Continued from page 541)

FRANK A. BACH
President, Fidelity and Deposit Company of
The

burglary business, the lines in which I am

Maryland

ries

primarily in-

opinion

there

field

some

were

000

Brokers

mercial
the

Blanket

Bonds

(classifica¬

which produce nearly 75%

tions

total

30%

procedure, which became effective
about midyear, made it possible for
us

to write all forms of

forgery
'terra,
erage
1

coverage

level that

World-wide

„

dustrial

*'''

■ y-/

■'

•

readjustment, and in

lence

as a means

i' ^

Our country

one.

tact.

•

:•

Whcit about losses?

It is true that loss ratios

when

increase

•

is physically in-

been and . that coverages are the broadest
we have; ever offered, it is reasonable to expet substan¬
tially increased sales, particularly in the blanket bond
field, i Buyers are not likely to overlook such an oppor¬
tunity to; obtain new fidelity coverage or to increase the
coverage they already have at the low cost now prevail¬
ing, especially when it is possible to insure against any
increase in cost over the next three years by having the
policies written on a three-year term basis.
they have

ever

statements

from

"The demand for homes is too well known to require

comment, and this demand will be
:

major factor in the'
country's prosperity in 1946," says a forecast by M. H.
Baker, President of National Gyp--'
sum Company,
a

trustee of men's funds that have been

a mere

for the safety of their families and for their

the. Treasury

times high income taxes and death taxes

upon estates
the last remaining instrument whereby all'
men, rich or poor, may leave behind them a more, help¬
ful share of the fruits of their lifelong labors, to the*

thave inade it

benefit

their

loved

over

"Manufacturers of building
now

starting the flow of war-scarce
products to dealers' stocks. By the
time building operations get under
way on a large scale, many critical
building materials will be in reason¬
able supply.
"Nor is the price picture on bund¬
ling products as dark as it has been
painted. Some prices have advanced,
of course, but in our own case theaverage of prices of our nine major
building products is not yet up to
the level of those prices in 1936 in
spite of the fact that some of these
products have been improved in the

Department

reveal

#that the people of this 'cduntry; collectively, have
placed *in war bonds and other forms of savings enough

through-unwise speeding, for inferior values.' Even if.
disagrees with the 'extent of this estimate there can
be no question about its reality for some years to come
and every man in business and industry shares a grave
responsibility that there be no shortsighted exploitation
of this spending power.
'
-

one

$38,500,000,000.; This tremendous reservoir of

unpredictable fate is supremely vital to the nation's and
its people's financial welfare. Any attacks by organized
groups whose aims spell eventual run-away inflation
must be met by the aggressive resistance of those 71,000,000 policyowners, since such inflation imperils to the
utmost the financial resources they have entrusted: to
life, insurance for the constant protection of their bene¬
ficiaries and themselves in life's greatest emergencies.
Yes, the task of life insurance is eternally to combat
humanity's tendency to ignore the dim and distant (yet
inescapable!) hazards of premature death or old-age de¬
pendency. To perform this task, in 1946 and thereafter,
is not only a duty but a privilege and'a basic necessity
to the future well-being of the United States and of the
world..

CHARLES E. BECKER

President,

The

beginning of the war, especially during the
there was considerable apnrehensiori
part of insurance executives, and particularly of

earlv days of 1942,
the

field

men, as to the future of the
life insurance industry, A huge seg¬
ment of the potential market for life

meantime.'

feel

will be
seen

that

barriers

to. free,

withdrawn

first

As in the
world

war,

by far

soar

Last year

soar.

Franklin
the biggest

Life,
/ear

in its six decade

history.
.*
it, it requires no Delphian

; As I see
Oracle to foresee

Even in the face of industrial
unrest, our produc¬
tion schedules offer no dearth of
product.
Paramount

1946.

course

even

better year
are

and will continue to have

sound condi*

tion.

the.

company—the

completed

exchange of trade.

our industry appears to be in

—and continued to

largely overcome and that our pictures will be
eventually by all the peoples of the world.

.At borne

.being

was

insurance sales shortly began to

sure

e s

aftermath

country and as an ambassador of good will
for its people, t Important
governments have recognized
this fact as a fundamental in their
international trade
relations.

1 ic i

through the drafting of millions of
eligible young men.
The passing of time showed these
fears to be unwax-ranted.

;

Much has been said, by the highest authorities about
the value of the Motion Picture as a salesman for all the

has completed every picture to be released in 1946
and
Melvin H. Baker
"Our reconversion is-'now com- :
six of those for release in 1947 are either
completed or
plete, and in addition we are well
^
before the cameras.
s
J
......
along on a $9,500,000 plant improvement and expansion
;
Our. industry, is confronted by no reconversion or must:
program.
A new. paper mill ~ put into production on \ recover from virtually no
maladjustment in operation.
Jan. 1 will relieve a paper shortage at our Eastern
We go on making the same product that we made in
<

p o

The solution of these problems

Will, no doubt, require strong assistance from the State
Department through reciprocal trade agreements.

•

Franklin Life Insurance Company

At llie

developed into national wealth with the help of Ameri¬
can experience,
ingenuity and such financial planning
as
is
now
in
prospect through world organization.
Although new foreign markets will'be created, there are
as yet evidences that
difficulty will be experienced in

product of

general.

money to insure the economic prosperity of our Nation
for almost a decade, if these reserves aire not
dissipated

ests in various countries.

•

$154,600,000,000ft< of life insurance, backed by re¬

serves

the revival of old markets because of trade barriers that
have been thrown up under the influence of local inter¬

mate¬

breaking bottlenecks

and

•

are

society

funds designed and put aside to absorb the blows of an

rials

and

ones

Some 71.000,000 policyowners in this country now hold

stricken countries can be aided in their
rehabilitation.
Their own natural resources can be

V.\:;"-y,^'.President, National Gypsum Company

than

(

Abroad,

uncer¬

•-

MELVIN H. BAKER

of economic and financial

waves

fore; if its wisdom is to be heard above the tempting
beguiling prosperity.. Men and women
will have money, much money, to spend lavishly or- to.
manage sertsiblyr—and. sensible spending is the key 'tof
lasting economic growth and solidarity.
For a hundred years and more, life insurance lias
justly been called "the poor man's bank"; during recent

Recent

Geo. A. Bangs

conservatism

siren songs of a

■

that premium rates :on fidelity business are lower than

and

own comfort in old age.
Life insurance must teach the
hard lesson of financial sanity and rigorous thrift, and
must voice its precepts more vehemently than ever be¬

Rights ind once our industrial differences rare
reconciled, no nation .was ever geared higher for produc¬
tion of Consumer goods from which an entire world is
»

such

set aside

Bill of

caution

Amid

that by its very nature is the mortal
of extravagance, of. inflation, of "living to the
full this day alone with no thought of tomorrow,"
During the year before us, life insurance must be far

pur basic. system of government
Barney Balab&n
at issue. { No one challenges
the dignity of the individual or his privileges under the

ag-

enemy

single basic right
having yielded a single
principle.
In comparison to other
countries, we face no national ad¬
justment emotionally.

«to benefit;,.

;

purpose, a purpose

optimistic

pros¬

tainty, the institution of life insurance stands like a
comforting rock of security—and will continue to so
stand while the institution remains true to its ultimate

I
i

is not

both in number and amount as the year "pro-;

grosses.'
It must

the moment;
r

: DowiT throughthe ^years
^
inspires reassuring 'faith in the common sense 'of r our
be remembered that.during the past several
citizenry as a whole. Trends toward one extreme or the
years an unprecedented volume of business was transact¬
ed. under conditions where' employers for the most part " .other, in controversial matters, swing like a pendulum,
but always return within the scope of a sound and
had neither the time nor the facilities to supervise ade¬
sensible: mean.quately the activities of employees handling money. As
The dearth of civilian goods during the -last four
business activities gradually return to normal, it is in¬
years has created a consumer demand never equalled in
evitable that defalcations, diversion of funds and other
the history of American business and industry.
Once
irregularities which occurred during the hectic wartime
industrial wrangling subsides, and it will subside, for the.
period will come to light and will be the source of nusurvival of all concerned, the task of supplying this
"l merous claims under fidelity and surety bonds.
eager
domestic: market will require a program of plant opera¬
When losses increase to a point where a particular
tion that largely should meet the challenge of
line can no longer be written at a prbfit, higher premium
employ¬
ment.
'
' '
rates on that line will surely follow. Bearing in mind
■

many

unbearable and short-sighted in the face of what
appears to be a glorious opportunity to throw discretion
to the winds and capitalize the immense possibilities of

and without

fidel¬

ity and surety lines, continued abnormally low during
1945, but over the past 16 years the average loss ratio
on those lines was 41.4%. During the past"several months;
there has been a definite trend toward higher loss, fre¬
quency and it iS| reasonable to ; e^
losses

aime after,

seem

We emerge from the war with-

having lost

some

out

1946 and for

gravatihg scarcity of. them; nullify- \
ing high wages will be inflated liv¬
ing costs and burdensome taxation—
the catalog of contradictions will be
endless and baffling. Days will come

dis- ;

perity in some areas will be offset
by perplexing monetary depression;
in others; countering huge pent-up

determining the C

affairs for the future is

violent

invariably characterized
bewildering
contradictions, by

It is fortunate that

throughout the
history of this country, in times of
stress, our differences are always
settled, after some group, demonstration, by the orderly processes of
reason and foresight.
My own outlook on our domestic
v

busi-

And the travail'

such

.therefore, we may expect
striking antitheses; upsurging

sections of the

some

issues.

social,

individuals,

cause

The thinking of the people of the world was never
more active and progressive than it is
today in the midst
of world-wide

most

cataclysmic
of violent
economic, financial. and in¬

demands for products will be

globe, conflicting ideologies of gov-,
erriment are still resorting to vio¬

the

world's most able prognosticators of
conditions and things to; come.

BARNEY BALABAN

our

strange anomalies that defy the in¬
tellects
and
imagination
of
the

President, Paramount Pictures, Inc.

from

recovery
locations is

business structures at;

lives

,!v of

V,v AjKfv-\

the

nesses, and nations;

gain of $10,000,000 ;ih :
new plants in operaor about double pre¬

«.

especially

war,

struggle in history, is inevitably the

will

basis, that is, three-years cov-;
for 2 Vz annual. premiums,, or

discount to the assured of 16%

and

dislocations

for homes

enter¬

mass

recreation

President, American United Ufe Insurance Company

A great majority of assureds took
:Fra^ A- Bafh
u-, advantage of this privilege, with the'
result that the 1945 premiums of all large fidelity writers
were inflated by the second and third years' premiums
paid during the year, but which must be carried in "un¬
earned premium reserve":and cannot be transferred to,
earnings until they are actually earned.
This point
ehould be kept in mind in analyzing year-end statements
of the various fidelity writing companies and it is sug-,
gested .that earned premiums, rather than written pre•miums, should be considered in comparing a company's
1945 writings with those :of the preceding year.
i There were also some substantial rate reductions in"
the contract bond field.
On one of-our most important
lines this reduction amounted to 33%%.
/•. • .1 Can we look forward to further rate reductions? Generally speaking, no. It remains to be seen whether our
Industry can absorb the very substantial reductions of
the last several years and continue to make a reasonable;
operating profit. - The necessity for increased rates on;
certain of "our burglary classifications is already ap¬
f parent.
r,

•

"With demand

business."

fidelity and
a three-year

1945,

need for

mental

GEORGE A. BANGS

require several years; to supply, and'
expanded volume that should gather momentum
from the second quarter on; National Gypsumi
Company
is optimistic about the future of the building materials
a,

with

rating

change in

35%.

1946 than in

volume.

war

fidelity premiums)
rate
and discounts averaged

reductions

building products.
In 1947, with
tion, we should reach $40,000,000

same

the

people.

days, is

war

supply the

essential

than

cost

pf the loss of $5,000,000 a year in war con¬
tracts, National Gypsum Company expects to do $5,000,-

reductions. -y On Bankers and
Blanket Bonds and Com¬

rate

less

"In spite

drastic

very

plants—at

shown in the undertaking of an extensive sales
training
program in order to be- ready for the time when selling
will be highly competitive again,

In the fidelity

the outlook for 1946.

seaboard

our

"The.company's change of attitude from

to the
future, I think we should first con¬
sider those developments of the past
year which have definite bearing on
In venturing an

for

wartime and

tainment

previ¬
ously. Additions to several existing plants will be com¬
pleted within; 90 days, giving us greater volume on
various products.

surety and

to fidelity,

apply

below

comments

Aitet the Turn ol the Year

having,
rash of

strikes and other labor disorders. But

economists will agree, I
Charles E. Becker

believe, that

plethora of strikes is always symp-

V tomatic of a prosperity trend rather
.>r,i-.:':.;'rthan- - the
opposite.: In
times
of ;;
incipient depression, labor is well content to hold, such
advantages and gains as it already holds, without runv'' (Continued on page 544) * \ -

:'v

ih s i 'i: I.- ^ :l .Hi

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

IMAGINATION IS THE DIRECTING FORCE AT CHRYSLER CORPORATION

*''

Clay models like this

are

used in creating body styling:

Imagination makes
new;

a new car

really

it hunts, creates and develops

the\improvements that increase

car's usefulness and value to you.

Chrysler Corporation,

imagination's recqrd is 20

years

£v. •• v *■4.$*^ QIv4

service of

our Cars

because

and trucks.*

men

apply

Ever since the first

Chrysler intro¬
and different kind
of automobile,
imagination has stimu¬
lated continuous
improvement and
ever-greater value in Chrysler
Corporation cars.
duced

really

can

new

drive

smoothly and
comfortably today because imagina*
tion
helped develop Floating Power,
g^rol Fluidr Drive, new types of
brakes and springs and scientific
weight distribution for our cars.
■
more

safety, performance and
-

cars are new

imagination to improve them.

You

constantly bettering the comfort,
-.1 f.

-New

The greater safety of 4-Wheel
Hydraulic Brakes, Safety Steel
bodies, better vision.and lighting are
results of practical imagination. So
are
better performance and longer
life—made possible by Superfinish,
Amola Steel, and many other new
methods and materials.
;

You'll

recognize creative imagina*

twit's latest achievements in the fine

Plymouth, Dodge, De Soto and
Chrysler cars.

new

■i'<: •■■','•

:%rh+h:../■

REMEMBER THURSDAY

■'

NIGHT)

...

The Music of

Andre Kostelanetz and the musical world's most

popular • stars—Thvrsdayi,

CBS,, 9

HODGE
PRODUCTS
AIRTEMP

Heating, Cooling, Refrigeration*

•

CORPORAtlON

CHRYSLER

CHRYSLER Marine and Industrial Engines

•

OIUTE Ppwdered Metal Products • MOPAR Parts and Accessories

EST,

'/•

transports adapted for civilian use.
In the field of personal aircraft; about the only new

attempts to

lining the risks which necessarily accompany
gain

more.

recent

years

types of airplanes

have become increasingly
important prospects for the purchase of life insurance.
!;This is not merely a temporary condition, since women
•i are playing an ever larger part in business and industry.
^Likewise juvenile insurance is mounting to a larger per| centage *of total volume placed on the books of life
| companies. Add to this the millions of demobilized
[young men who are again returning to civilian pursuits;
who are marrying and founding homes; and you find a
i market which is practically glutted with potential buyers.
i T do not believe- that the increasing availability of
j tangibles will make serious inroads into the potential
insurance market.
People have become "savings-conKscious". The millions of dollars of National Service Life
f Insurance sold to soldiers have conditioned these men
Ito the idea of purchasing life insurance when they return

j'
.

design, build, test and tool up for production.
As we interpret Government statistics, the

•'

No longer does the aver age young man

!to civilian life.

$1,000 policy as wealth untold. And the pur¬
of war bonds by soldiers and, civilians alike,

[think
chase

^engendered the salutary habit of systematic thrift.
I In summation: I have little fear as to the eventual
I working-out of our economic problems and our con¬
tinued prosperity, provided politicians restrain their
furge to control all things through a benevolent, paternal¬
istic government. "Free enterprise" may be a hackneyed
phrase; it is, nevertheless, a modus vivendi which made
fAmerica great.. If hot unduly hampered, I believe it can
'

Ikeep

great—and prosperous.

President, Intertype
foresee

amounting over

Corporation

air¬

during 1946 and 1947 providing always
that Government policies are reasonable and are cal¬
culated to assist the: industry; instead of throttling it.
As far as military business is concerned, the require¬
ments of the Army and Navy probably will be modest
for the next two years* New types of aircraft have to
business

craft

designed, developed and tested prior to being put
production, and airplanes which are now on the
drawing boards will riot / be in production until 1946,
It therefore is our opinion that Government[ busiriesa
will not amount to much in the aircraft industry until
be

into

should be
order

resumption
our air

keep

industry-wide

While the above analysis is based upon

conditions, I am glad to be able to state that the Beech
Aircraft Corporation is handling a nice business at the

during the period of upward

present time. For the month;of December; 1945, we
actually delivered a greater volume of commercial or¬
ders than we did in the/entire prewar year of 1940.
Our volume currently approximates $2H to $3 million

decline

the

•

purchasing

of the dollar over the same
period will probably be not less than
30% from the present level.
This
means, however, a larger dollar vol¬
ume of business and of dollar in¬
come
from which the government,

power

get the taxes which it will

can

stage.
We look for a steady increase in the commercial

prices
above

The

percentage of employment is believed to be larger than
this percentage because of. the development work that
is going on which has not yet reached the production

forces from being obsolescent.

general increase in wages and
the next five years to 50% or more

^present levels; many strikes
adjustment.

aircraft

industry is operating at about 3. to 4% of its wartime
capacity insofar as production volume is concerned. The

that date, at which time there
of Government purchasing in

NEAL DOW BECKER

available are those which [have been

developed during the past year or are adaptations of the
liaison airplanes built for the Government. There are
no personal airplanes of really modern type available
yet, although several companies, including ourselves,
are working hard to produce such aircraft.
Some < of
them should be ready by the middle of 1946 although
others will not be. ready until the beginning of 1947.
Even, a moderate-sized airplane takes about a year to

women

have

month, and is expected to increase gradually during
None of this business is military and most of it is

per

Thursday, January 31,1946

Speaks After the Turn of the Year

Business and Finance
(Continued from page 542)

1946.

donewith the most prominent corporations of
BEECHCRAFTS for their own use and
operation;; We are fortunate in having an improved hew
model of our Model 18 all-metal, twin-engine BEECH-

being

these customers to the very best of
increase

the

will be by large sums

which will be

voted for soldier bonuses

disabled

soldiers

and

and care
their de¬

pendents.
I look for an

unprecedentedly ac-:

domestic

tive

business.
Foreign v
if U. S. A. were

willing to receive

willing

are

JOHN D. BIGGERS

Neal Dow Becker

receive

goods

for

flourish |
not even reach prewar volume measured in
[prewar. dollars.
Nearly everyone, subscribes in theory
to; the practice of taking goods for goods, but there is
goods foreign trade will not

Ismail indication that

our

two strongest pressure groups,

;;labor and farmers, will consent to a sufficient importa¬
tion of manufactured goods or farm products to sup¬
port an export trade in anything like the dimensions
;So frequently mentioned by the optimists who make pre¬
dictions on the subject.
Unfortunately even the broad-

casting of "foreign" music coming in over
seems now to be barred!
"[[I

the ether

WALTER H. BEECH

fl will attempt to give you one man's
[[opinion of the outlook for present
I conditions in the aircraft industry.
t

;

You

are

well

of the fact

aware

i,is quite as it should

statesmanship should aim
to achieve a price level which will!
induce
mass
production commen-'
surate with the large-scale opera¬
tions for which American

new

[
•

plus of current types of airplanes to

that

would

this ;

take

eventuality

place,

Walter H. Beech

surprised everyone and very few companies
position to offer new commercial models to
:Uhe airlines and to the public for immediate delivery.
J There are few exceptions to this generality, g
1

were

.Such

exceptions

are

based upon the. availability of|

transport type aircraft developed for the Government
current production at the end of the war.
The
[task of reconversion of such production lines to com¬
mercial production was relatively easy.- Certain com¬
panies have either begun to make deliveries or will
begin to make deliveries in the near iuture of large

;

?and in

effect

some

Those

who

Biggers

homes,

dustries.

and

addition

have

Orders for

glass from the construction industry of the

nation give evidence that long-pent-up building activity
in

this

country is trying hard to get underway.; Once
automotive industry begin to
operate at full capacity, we can anticipate an increased
and growing demand for automobile safety glass.
the assembly lines of the

In the plastics field the orders on hand exceed the
present plant capacity. Libbey-Owens-Ford is taking
immediate steps to expand its Plaskon division to meet

been

are

started and are scheduled for completion in 1946.
Greatly expanded research projects and experimental
progress, involving basic research in glass, plastics and
plasticizers used in making safety glass, will be started
in 1946 by LibbeyOwens-Ford. New laboratory facilities

the savings
unemployed

are

these labor difficulties will soon

and

and some

that

has

and

new

been

little

new.

bonds were avail¬

construction

and

problems facing the country is hous-.
is produced, the supply of

housing

The bottleneck that prevents

is, therefore, in the material, and labor field.
The mutual savings banks of this country were never

at
the beginning of 1946.There are committees studying
the possibility of obtaining new types of investments
for their funds.
They are also seeking ways in which
they can furthef serve their depositors. At the present
time they have a greater number of customers than they
stronger or more liquid condition than they were

applications of

service

.......

rapid and substantial additions to the supply of housing

ever

had before.

for

flat

from

It will be a challenge to serve

the

gas and electric

peaks

established

...

during Jhe ^war. was to be expected,
the decline thus far has been less than
generally anticipated.
record in

However, the

this respect has naturally
uniform, considerable

been far from

variation being observed in different'
sections of the country.
Sales in the domestic and commer¬
cial classifications appear not to have
been affected

nation

the

greatly by the termi¬
war.
In our field of

operations in Northern and Central
California

have

experienced

continued

upward; trend in these
classes, more than offsetting, from

the standpoint of gross revenues, the

decline in wartime industrial sales,

this

territory,

all

indications

Black

point to the retention of much of the
extraordinary growth in population which occurred in
the war years.
With the resumption of home building
on a large scale and increasing availability of appliances,
domestic sales of gas arid electricity should continue te
expand.
-

have

markets

ahead.

trial

available and

flow of materials needed for construction and the neces¬

new

Public utilities emerged from the war in sound operat¬
ing and financial condition, and relatively free of im¬
portant reconversion problems confronting many other
branches of industry.
]
Although some recession in indus¬

Philip A. Benson

mortgage loans available.

Jabor to do the work.

and

JAMES B. BLACK

mortgage loans will increase proportionately.
The dif¬
ficulty, in producing housing is not lack of credit. There
is abundant credit available for all types of housing and;
in every part of the country.
The difficulty is to get a
sary

uses

President, Pacific Gas and Electric Company

continues
this type of investment will be;

new

industry,

years

price of outstanding Governments

there

opened

culties behind us, and well may lay the foundation for
period of prosperity and constructive progress in the

bonds are, not
,

!
new

large part of the new savings

new

space

1946 as a year in which the flat
along with the automotive and con¬
struction
industries, with which it is closely allied,
should succeed in placing the greater number of diffi¬

possible for sav¬

have

glass

estimates have

provide additional

our Technical Department.
brought technological advances,

I look forward to

-'
.
question but
that the fund of savings is now well -

years

glass and plastics.

There seems to be no

placed it as high as
high as 200 billions of dollars. Mutual
savings banks are the custodians of
a
large part of the total fund of
savings. The problem
they face,
however, is in making savings prof¬
itable.
The successive Government

war

techniques and new products which have made prac¬
tical applications of glass never before thought possible,

to grow.

150 billions of dollars

equipment in

The

under construction to

now

and

adjusted. If they are and we realize
the
prosperity that seems to ' be
ahead of us, savings will continue

One of the major

war,

they return
places for
about 1,000 additional veterans or others who may de¬
sire to enter the flat glass industry.
\
It must be remembered that reconversion to peacetime
production by the flat glass industry was comparatively
simple, and already has been accomplished.
During the war period it was impossible to make ad¬
ditions to flat glass production facilities, he said, and
now it is logical for the industry to undertake an ex¬
pansion and renewal program to meet the high levels of
activity scheduled by the automotive and building in¬
their

through strikes or otherwise will
undoubtedly have recourse to sav¬
ings for current needs. Let us hope

ing

i with Japan

•:

funds.

therefore few

from the begin-

and they attempted
j to prepare as well as possible for ■>
\ the ultimate eventualities. However,
Ii the suddenness of the end of the war

|ning of the

have

fact

ultimately

John D.

than

2,000 em¬
ployees who served in the Armed Forces

throughout the

rise, the yield from
loy/.
We. would all like to secure more mortgage loans as investments but that has not been possible due to the

| add to the surplus already existing,
f All aircraft " companies-; realized

the

A new factory, a pilot experimental plant,
research, power, water and shipping facilities
involving an investment of more than $5,000,000 have

very

now on hand. There is no
in building an additional sur-

sense

all

entire year of 1945 and as 1946 begins there is evidence
that it will continue.
Strikes and labor difficulties may

to.

;| rent types

Libbey-Owens-Ford
has
made
plans to take back into employment

President, The Dime Savings Bank of Brooklyn

the market

airplanes of all cur-

industry is

„

additional

There was a steady increase in savings

Government debt.

the tremendous surplus of practi-

| cally all

tuned.

now

this demand.

Government Bonds and because these

be because of.

economics and wise

cation of sound

able and very few other investments were, a major part
of the resburces of savings banks is now invested in the

f eliminated the military market for
I aircraft in the United States. This

that

from the stand¬

business

ings banks to invest

of Government
contracts after V-J Day practically

years

PHILIP A. BENSON

loans have made it

that the cancellation

of all

point of production and of high employment in the flat
glass industry.
*
1 " >
'
It cannot be foreseen at this time,
however, whether those production
and y employment
goals
will
be
reached in the coming year. Their
achievement will depend primarily
upon a stable labor situation.
Such
stability depends upon steady anc
efficient production, and should be
compensated by adequate wages. In
addition, careful consideration musti
be given to price structures. Appli¬

available; for current delivery to our customers.
This airplane has been iri production for the past two
months. We will announce v§ry improved new mediumsized airplanes for the pilot-owner during the years of
1946 and 1947. We are depending upon these airplanes
to augment our present business with the larger twinengine BEECHCRAFTS. *
$

over

| i
President, Beech Aircraft Corj).
I j have no reputation as a progriosticator or prophet,
land present conditions require considerable ability with
la crystal ball in order to foretell the future. However,

demand for flat glass products indicates

Present

1946 could be the greatest

CRAFT

imported goods in

and may

ability and to

our

President, Libbey-Owens-Ford Glass Co.

America buying

trade could be large

large volume.
This it probably will
not be willing to do; and unless we

our

usefulness to the people of our communities,
and to the State and Nation during the new year.

the interest
national debt, increased as it

to have in order to pay

CHRONICLE

THE COMMERCIAL & FINANCIAL

544

New and wider applications of these services
;
.;(Continued on page 546)

THE COMMERCIAL &

Number 4460

FINANCIAL CHRONICLE

'V-'

;J »V
W$4?

'•

i:-V*
*

(i;®

•

•'

•:

iff

'¥
'

¥
vv

America's

Those who appreciate

the rich, smooth flavor which'

comes

of quality

ingredients skillfully blended have made SCHENLEY Reserve
America's

most

widely enjoyed whiskey. Try it

T> T?

soon.

CT?UTTV

wuDLJVVJJ

86 PROOF. 65% GRAIN NEUTRAL SPIRITS. SCHENLEY

DISTILLERS CORP., N. Y, C

y>" .^{4

THE COMMERCIAL & FINANCIAL CHRONICLE

546

Business and Finance
reason

to believe that much of the war-induced

trial growth

indus¬

Many new industries
have already located here, and we have a comprehensive
program under way designed to promote the further
development of this section of the country.
;
Many public utilities in recent years have been able
to take advantage of prevailing low interest rates to
reduce capital costs and improve their capital structures.
The possibilities in this
direction; have not yet been
exhausted, and for some companies further progress
along these lines appears likely.
The
on

the

will be permanent.

government to
tax business activities of states and their subdivisions.
The constant withdrawal of more and more
property and
income from the reach of

taxation, such

attention,

argument
from

definite

benefit

requested

the

Bureau

"In

connection

market

and

with;the denial of funds for

transmission line

studies

and

protection

against

death

the

and

Treasurer, Atlantic, Gulf & Pacific Co.

large in plans for stabilizing our
peacetime economy. Few, if any, other activities benefit
people than construction. Carefully planned proj¬

give,

directly.'..and''indirectly,

ment
out

areas

the

labor

and

spent

for

years

come

many
way

have

persons

to create

demon¬

that
an

and harbor

estate:

control.

appreciation of the value of
insurance which has been re¬

flected during

recent years.
Despite the great value and prom¬
ise of the life insurance industry to
more

than
this

beneficiaries,

cur¬

dustry is operating below capacity.
being done aside from maintenance,
Elbert

rently rests upon jthe institution. The
Federal Government, through its fiscal

SvBrig!ham

policies, has

new

significance than
sure

PURE

OIL

ever

into

with Pure"
C O M

P A

NY,

work, our in¬
Little work is
construction

municipal airports, and the dredging of basins in which
to lay up idle ships belonging to the Maritime Commis¬
si
(Continued on page 548)

"Be

Emerson S. Bowers

six months after the end of the wars,
and owing to the completion of our war

$67,000^000 policy¬
^country and their
heavy penalty

Federal

Government for river
improvement and flood
present, Federal projects
totaling something over $500,000,000
have been authorized by! Congress.
But because of a provision in the
Authorization Act passed last March
that no work shall be begun until

the

THE

Funds

and

creased

life

Pure Oil's

■*

indirectly through¬

country.

the

is by means of life insurance.
This
fact has augmented the greatly, in¬

developed at Government

employment to thousands. They stim¬
ulate business directly in
improve¬

ity at every turn.
The dredging industry is largely
dependent upon appropriations by

the

and

works loom

indigent

only certain

surveys

certainty

Public

some

dams and that the, activity desirous of securing such
should construct such lines to the point where
Government power is being generated." '
/

the

risk

Secretary

High taxes during wartime and
the prospects of heavy taxes for
strated

power

EMERSON S. BOWERS

materials, reaching back
to
industrial plants,, mines, farms,
forests and pther sources of raw
materials, permeate our entire eco¬

old age.
?

holders

power

if these fiscal policies result in further increases in the
price level, the real burden of carrying the debt for
every individual in the country might readily become
far greater than the burden of somewhat
higher interest
charges on the Federal debt, which would be offset iii
large measure by a higher return on savings and greater
encouragement to people to save.
"y
:
•

nomic structure and stimulate activ¬

sion

market

to provide for themselves

ects

the
committee has taken the position that the.Government
should not go into the business of
constructing transmis¬
lines to

|p ELBERT sf BRIGHAM

out, during times of war and peace, during periods
of depression and prosperity,
the
?
American people rely upon life in¬
surance
as
the major
bulwark of

This action places a heavy burden
thrifty and prudent persons who have endeavored
through the purchase of life
insurance, through deposits in savings banks, and through
thb acquisition of Government bonds and other
invest^
ments.
The Government justifies its policies on the
grounds that the large Federal debt resulting from the
war necessitates low interest
rates, in order to keep
cariying. charges on the debt at a minimum. And yet,
upon

year

them at low levels.

reasonably favorable economic

Life insurance has entered 1946 with great promise.
Increased sales of insurance demonstrate that year in and

Reclamation under the First Deficiency Bill for
1946, the
Committee stated:
•/

forced interest rates to the lowest levels in history and
has promised to exert every available effort to maintain

constructive government attitude, the

President, National Life Insurance Company

In the face of this situation, the forthright and con¬
structive position recently taken by the House Commit¬
tee on Appropriations is highly encouraging.
In denying

appropriations

outlook for the public utilities appears
bright,. with
expanding markets and new opportunities for improved
service to the public.

The outlook for the

certain

*. -

Assuming

pressure.

thereby resuming the downward trend, temporarily
halted by the war, which has characterized utility rates
over a period of many
years.

to the Federal taxpayer. It seems clear that no one in
the end will benefit, if such a policy is allowed to proceed
unchecked.

valid

background and

investors and employees, it is hoped in many
there will remain something for rate reductions,

to be hoped that American industry may
soon produce a flood of goods for
peacetime pursuits.
This is our only insurance against further
inflationary

ties of

public utilities is still partially
clouded by continuing threats of further subsidized gov¬
ernment competition,
Governmental agencies are seek¬
ing appropriations for the primary purpose of constructing transmission and distribution systems in order to set
up competitive systems paralleling and duplicating exist-,
ing facilities./. In, some sections of the country the issue
in these cases has resolved itself simply to one of
govern¬
ment ownership for government ownership's sake, with¬
out regard to consequences to the
investor, the consumer,

Certainly

exists to justify the continued immunity
of government-owned utilities.
Those

our economy.

It is also

advantage is partially offset by the fact that higher costs,
particularly for labor and. material, appear inevitable in
the years ahead.
However, with due regard to the equi¬
cases

now

taxation

permanently associated

| with

This

them.

has been

served by such agencies should not
longer, escape pay¬
ing- their equitable share of the higher burden of taxa¬
tion which now appears to be

impact of war. taxation was particularly severe
public utilities, and the reduction in Federal
became effective at the beginning of 1946
therefore

observed in the utility field, is a
subject which should
receive prompt legislative

taxes which

should

Speaks After the Turn of the Year

The recent decision of the United States
Supreme Court
in the Saratoga Springs Commission case
may be of
particular significance to investor-owned utilities, in
that it reaffirmed the
right of the Federal

(Continued from page 544)
in the commercial field appear certain.
There is also

Thursday, January 31, 1946

U.S.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

.Volume 163

orderly, decent and fortunate
of./life for themselves and

Strikes and Lockouts "Acts of Waf'

Says Butler
Urging Immediate Government Action

way

their families,"

should

permitted by the Government—much less encouraged or endowed.
According to Dr. Butler, whose views were voiced at' the annual
luncheon of the Pilgrims of the United States, at the Waldorf-Astoria

was

described

Dr./ Rutler. as in the midst
"terrifying" industrial civil

war

that must be ended by imme¬

the

after

stated -that

the country now, has a

Connally Act. '

meeting, he told reporters that his
idea was to "prevent strikes and

some

lockouts

Although

A.B.A, Mid-Winter Trust

the problem :f has be¬

desperate, Dr. Butler said,
it should not obscure the. fact that

who
do not
defend
•.'American principles of law and
prder." ' The "Times" in reporting
Congress

of the objectives of industrial
"frequenuy

war were

"We

manual

desire

wages

this added:

admirable."

the

that

people."

Several times he repeat¬
emphasis that the danger

ed with

point had been reached and that

only prompt action could

end labor strife and called for po¬
litical action against members of

come

by law— absolutely.''
The "Times" added;,,. He said /that

■

but a battle between "an or¬
ganized class and the American
war

"We must realize the danger,"
he said.
"We have a situation in
which the Government is
permit¬

ting groups organized for selfish
interest so to act as to attack the
whole people of the United States.
It is an attack on the social order."

the

The real issue, he said, was not
whether manual workers were en¬

titled to wage increases, but what

should * be

steps
them.

taken

attain

Strike's and lockouts

"acts of war" and

were

only peaceful

of settlement should be per¬

means

mitted

Government,

the

Butler asserted..

Instead nf "encouraging hnd en¬

civilization, Dr. Butler de¬
labor trouble affects the

our

clared,

American

entire

people

and

ana

strikes, he

went on,

the Government should
take steps to forbid them. Action
should have been taken by Wash¬

ington three or four years ago, he
said, and added that nothing was
done because of "fear of political

reprisals."

Dr.

Because of the complex nature

by applause and shouts of ap¬

save

dowing" lockouts

Dr. Butler, frequently interrupt¬

worker^>be/sufficient.for

"strike m Maine is felt on the Pa¬
cific Coast and in the South."

situation.

law requir ingvthe people, to, "pay the bill ?
gotiation,arbitration and judicial for the conducting of strike votes;
determination.',
The New York apparently referring to the Smith- failing- to: take? decisive steps fo
"Times"

business, industrial and profes¬
sional leaders, charged that the
labor controversies were not class

ing "all strikes and ^ lockouts and
punishing those responsible. Dr.
Butler, who is President Emeritus
of : Columbia University attacked
the
Federal
Administration for

dutlawing

proval from the audience bf 400

diate Government action outlaw¬

bring a quick end to the industrial warfare

for Federal legislation
any - but
peaceful
methods of settlements^ such as ne¬

The United States

is to press

"There

imposition by the
employer on the worker." v "

Declaring that both the lockout and the strike "is an act of war,''
Dr. Nicholas Murray Butler declared on Jan. 23 that "neither should

Hotel, the only-way to

he said.

"Let

us now

remind

our

principles will be given permis¬
home," he declared.

sion to stay

Conference in N. Y.
♦

Completion of the program for

■>:

Trust Con¬

Mid-Winter

27th

the

ference, to be held by the Amer¬

ican Bankers: Association at The
Waldorf-Astoria

■

York

New

City, Feb. 4, 5, ahd;6;/$s announ¬
ced by James W. Allison, Presi¬
dent

Association's

the

Trust

Division, who is also Vice-Presi¬
dent, Equitable Trust Co., Wil¬
mington, Del. •
Current
developments
which
may have an impact on the eco¬
nomy
of the United States for
years to come will be discussed
by outstanding speakers during
.

the five sessions of the three-day
conference.

features

conference

Special

will

include:

First

Day—"A Tribute to Fred¬
Carroll,"
immediate
past president of the Trust Divi¬
sion, who was killed in an auto¬
mobile accident on Oct. 16, 1945,
near
Paris, France. Mr. Carroll
A.

erick

was

leave

from

Mc-M

the National

Shawmut Bank of Boston, Boston,

Mass., to serve as American Red
Commissioner

Cross

for

Great

Britain.and Western Europe, Basil

O'Connor,

Chairman,

American

Red Cross, will participate in this
tribute.
>
"What
Atomic
Energy
May
Mean to You," by Dr. Reuben G.
Gustavson,
Vice-President
and
dean of faculties of the University
of

Chicago, Chicago, 111.

"Banking's Objectives in 1946,"
by Frank C. Rathje, President,
American

Bankers

Association,

and President, Chicago City Bank

and Trust Co., Chicago..
"The
Veteran
and
the

;

Trust

Department," by Robert M. Alton,
Chairman, Executive Committee,
Trust
Division, A. B. A., and
Vice-President, United States, Na¬
tional Bank, Portland, Ore.
,

Second Day—"Forecasting Eco¬

nomic

Weather," Dr. Marcus NadProfessor of Finance, New
York University, New York City.

ler,

"Are

Public

Relations

The handshake that saved over $35,000 a Year

Worth

the

Effort?" Dale Brown, Presi¬
dent, Financial Advertisers As¬
sociation, and Assistant Vice-Pres¬
ident, National City Bank, Cleve¬
land, Ohio.
!

One

day,

some

months

ago, an

executive of

factory

'a substantial volume of sales.

employing several thousand people called in the rep¬
resentative of The National Cash Register Company.

Third

Day—Address of Willis
Smithy President, American Bar
Association, member, Smith, Leach
& Anderson, Raleigh, N. C.; "The
Conditions of Labor Peace, Dr.
Leo Wolman, Professor of Econo¬
mics, Columbia University, New
York City.
At a luncheon on the closing
day, to be tendered the delegates
by the New York Clearing House
Association, Leonard W. Brockington, K. D.,' L. L. D.» Ottawa,
Ontario, Canada, former counsel

;

A
ter

new

feature of the Mid-Win¬

Trust

will

Conference

the

this

year

consultation

period
on v; Tuesday
afternoonj Feb. 5,
when the visiting trustmen will
have ten "experts" on various
trust subjects available for con¬
sultation. In addition, the officers
the

Trust

Division, Executive
members, and confe¬
rence speakers will be present as
"roving professors" to answer
Committee

was

not their

first meeting, they had been working

together for some time on recommendations for han¬

the

dling

factory's payroll

and labor distribution

"We have decided to follow your
for

our new

tive

recommendations

industrial accounting system," the execu¬

said. Then he

shook hands with the National

Today, figures show that the decision sealed by that
handshake saved the executive's company over $35,000
in

one

the

year.

than the complete cost
manufacturing plant this
be the equivalent of the net profit on

That

was

equipment In

amount would

costs

wherever money

far

any

increase

and

products have helped
profits

can

seen

is handled or records kept For man¬

ufacturers, banks, hotels, retailers and many others,
National

Accounting Machines have opened the way

only to important savings but to greatly improved

results in general.

And in the field of retailing, from

the

largest store to the smallest, National Cash Regis¬

ters

provide the accepted method of recording trans¬

actions and

representative.

;

reduce

not

records.

Empire affairs to the British

Ministry of Information, London,
England, will be the speaker; v

Evidence of how well National
to

The size
Your
you

controlling store operation.

nature of your business does not matter.
National representative will be glad to help

with

Cash

any

problem

you may

have. The National

Offices in prin¬

cipal cities.

Making business easier for the American Businessman

G/fca&onal
l

* * *

Federal

representatives that there will be
an election in November and that
those who do not defend American,

CASHXEGtitm ♦ ADDING MACHINfi
ACCQUNim-BOOKKWim MACHIN&

THE COMMERCIAL & FINANCIAL CHRONICLE

—

••

Thursday, January 31, 1946

(Continued from page 546) •
Navy. ; It is expected that Congress will
son remove the six months restriction, and also provide
appropriations for prosecution of certain projects already
approved.
The immediate outlook for the dredging
industry is dependent upon these factors, and upon
sion

further

new

the

and

Construction

municipal .airports along

seaboard.

the

turers

facture of delicate

home

pro¬

which

To take

double

?than

Part

year.

will

the
;

that

used

many

velopment

was

of wartime

any.

these

for

new

output

new

the

••

motors

will

prewar

facilities

engineer¬

heaters

centered

ers

It.

also

ities.

Precipitron and Bug Bomb, other

ment to

some

George H. Bucher

was

It was compelled tot

industry;

Production of the industry in 1939
The best esti-;
appreciably lower
the 150 million pounds peak production in, 1944.

below'114 million pounds of dyes.

mate is that 1945 production was not
than

Today the United States is the undisputed world lead¬
in dye making. rWe produce every dye we need here.
(Continued on page 550)

Onliwon

Receptacles.
^

,•

outstanding characteristic of

all

A.P.W.

papers

and

Onliwon

sanitary

is that they are interfolded

dispensed from uniform style

cabinets. The

spic and span ap¬

pearance

an:

Onliwon-equipped

washroom is In itself
form of modern

George W.Burfeee

It met this challenge,

A.P.W.

possibil¬

Westinghouse pioneered

Covers

export

huge military demand, to increase production
sharply and, in addition, to supply a large number of dyes
which had formerly been secured entirely from abroad.
meet

numerous

The onset of the war threw a tremendous burden on

2,000 people and turn out $10,000,000 to

Seat

this

factors

In fact, our company even to¬

the American dyestuff

10 million dollar plant and

Waste

alike.
these

day is shipping American-made dyes
Latin America, Canada and to

expected'eventually to give employ¬

$15,000,000 of engines yearly.

For the production of gas turbine aircraft engines—
both jet propulsion and propeller drive—we are com¬

pleting at Philadelphia

result

various other countries.

will

consumers

„

are

It
Its

important industry faces the first
postwar year with a confidence born
of its faith in its ability to meet the
unprecedented demands of the grow¬
ing number of domestic users of dyestuffs. Moreover, this industry is to¬
day in a position to take advantage

be manufactured in a plant at
Emeryville, California, and will mark the Company's
entry into this new field of usefulness oi electricity. The
Vmarket for such units is expected to be principally in

and

the Pacific Northwest .and mid-South.

technical know-how.

productive capacity is ample. Its
products have between the two wars
won the. acceptance of manufacture

;

Home

research laboratory

It possesses

has scientific research facilities.

products Which we have added to our business and
job opportunities include electric home heaters and air¬
craft gas turbines.
"
7.

Production of medium'sized elec¬
tric

day this relatively new industry is
on a firm footing.
It is established.i

new

ing experience.
i

parallel exists between the conditions faced by.
dyestuff industry this" year and those

American

the

Which confronted it id the first year
after the end of World War I.
To¬

of anticipated increases in demands for

care

In addition to the

production of

and

nation-wide scale.

on a

550).

President, General Aniline & Film Corporation
Little

being integrated into those of
Jersey City, N. J. Additional
capacity will be available at.the Elevator Division as a
result of the removal of air conditioning activities from
that plant to Boston.
7«

•

products whose dehastened as a result

research

will be marketed

organization of which

This expansion program will peraverage annual

; '

the Elevator Division at

spent during the next 12 months.
an

•

elevator equipment, Westinghouse purchased the Atlantic
Elevator Company in Philadelphia, the facilities and

mit

soon

is in production now.

the end of
its 60-year
history. If fair wages and prices prevail, its peacetime
business
in
the years just ahead
should be largest it has ever known. •

will

•

manufacturing divisions, the Appliance Division by the
end of the year was in production on
many major types
of consumer goods, including
refrigerators, ranges, and
the Laundromat, the automatic cycle
washing machine.
A new product, pioneered by Westinghouse to meet war
needs, is the Bug Bomb aerosol insecticide dispenser,

The Westinghouse Electric Corporation at
1945 has the greatest production capacity in

amount

Although it required the

GEORGE H» BUCHER

this

most extensive reconversion of any of the
Westinghouse

President, Westinghouse Electric Corporation

plant.

Appliance Division at Mansfield,

attempted by the Company.

to look forward with confidence.

remainder

in the Sturtevant

use

page

GEORGE W. BURPEE

of household electric appliances on a scale never before

We believe that we have sound reasons for continuing

%;•

LOWELL R. BURCH
President, New York Air Brake Co, (see

Ohio, and Springfield, Mass.,-are being enlarged and
re-arranged at a cost .of $11,500,000, to permit production

a large volume of employment.
Our specialized
equipment and highly trained' organizations, both the
result of decades of experience and evolution, stand
ready. Our industry cannot fail to develop and expand
along with the growth of the Nation.

During the last year the Company
has provided $61,000,000 for the re¬
conversion
of
its
plants and the
expansion of its manufacturing facilities.
More
than $8,000,000
has
already been spent and most of the

military equipment, will be built for

Plants of the Electric

vide

■'I

air handling equipment..
Principal Westing¬
conditioning activities will be integrated with
the Sturtevant Company.
The Precipitron, the

electrostatic air cleaner developed by
Westingsouse and
produced in quantity during the war for use in the manu¬

opportunity to help in putting our economy back
stable peacetime basis, and through performing work
the Nation and

those of

have its

Many problems still before industry must be soived
before we can reach a post-war production and employ¬
ment stride that Will satisfy either us or the consuming:
public.: They are serious problems of labor relations,
materials supply, pricing and marketing; employe train¬
ing, and the like. But we are confident that with toler-'
ance, fair dealing and patience, they will be solved.

house air

improvements, essential to navigation and to flood pro¬
tection, must keep pace with this advance and develop¬
ment. In fact, national advance and development depend
largely upon improved waterways.
Moreover, we shall
have the greatest merchant fleet in all history.; Water¬
ways must be ready.
Here is where our industry will

assets

will be headquartered at Boston, Mass.,
Westinghouse has acquired the B. F. Sturtevant
Company, one of the oldest and best known manufac¬

the

development of axial-flow jet engines for the Navy
during the war.

production

will increase

the

Pittsburgh, Pa., main works of
there for expansion of heavy

room

where

,
.
» ,
*
The development of our Country is not complete.
Iti
continue
to
develop
and
expand.
Waterway

which

East

Greatly expanded air conditioning development and

will

on a

Buffalo, N7'Y. 'This operation will be

Company to make

apparatus manufacture.

the

■:

plant: at

moved out of the

The

valuable

public relation s.

advantages of installing all

four A.P.W. Onliwon Products are

conclusively demonstrated by an
costs-r-and'

nance

T IME was when the public
washroom

necessary

ever,

was

looked

relations

tomers

and

b.oth

;

with

employees.

•: cus¬

and

hold

cfesirable

costly to

sanitary washrooms,
hand,

encourage

them with

users

Clean,

the other
to

treat

respect—reduce mainte¬

and other

toilet

seats

ment

from

costly abuse.

»jy'- ^

7;"y

<•

•

•'>*%; /vyyy-7tv;

issue

equip¬

and toilet

seat

covers—are

from locked cabinets to protect
•

and unclean hands.

dispensed

them from

7:'.: 77

dirlif"',
rw

A.P.W. Onliwon Service has been
created

make the

public wash-

the eyes of users—and_ to

vandalism—are

-a

All A.P. W* Onliwon Products—towels, toilet7 H 7

conditions and pro¬

service

fashioned and
age

day, Onliwon Service

A.P.W

'room

maintain—and breed ill will.

Advantages of
■

Public washrooms that look oldencour¬

end of the

tects

4 •('.

unsanitary

inspection of the washroom at the
assures neater

employees.

important factor inv building

better

attract:

customers' and

far-sighted managemeht rec¬

ognizes the public; washroom
an

firms

upon

evil. Todav, how¬

help business

safe, sanitary and adequate in

M'.

ONLIWON

simplify

daily maintenance problems. Com¬
plete Onliwon Service comprises
fqur

products: A.P.W.

Toilet

Tissue—A.P.W.

Towels—A.P.W.

Onliwon

Complete Sanitary Service for Public Washrooms f | g

Onliwon

Toilet

A. P, W. PRODUCTS COMPANY, Inc.,

Albany 1, N.

;

>•:.

163

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

Peterson Pres.
11S. Tobacco

has

Jonathan Whitney Peterson,

United

elected President of

succeed-

Tobacco Company,

Mr.

M. DeVoe.

late John

eterson is

the third Pres¬

the

ident

company, and
is; the son of

chief

first

xecutive,
Jonathan Pe¬
terson, elected
at the, time of
ts

organiza¬

tion in 1911.
'

Starting

1921, at
the age of £3,
July,

Peterson

Mr,
has

fM entire business
"•

life with the

Well

...

J, W.

Peterson

known

company

which

head. After

now

his

spent

than

a year

in the factories in Richmond, Va.,

Nashville, Tenn., and Chicago,«Mr.
joined- the? sales force,

Peterson

and for two years sold his com?

pany's

products

trade in various

tobacco

the

War

certainly proved what
considered

outsiders

Brags" were "Texas I ruths" after all.
Assistant

1924,; he became

Department Sales Manager of the
Metropolitan? New • York. area,
where his executive ability and
sound sales capacity brought him

Because Texas had what it took
to

become

When the

Texas

was

When the war called for sulphur,-

Japs got

our

natural

England territory.; >:
c In
1929,
Mr. ? Peterson

capital of the world.

-: was

Texas provided mountains of it.
As the richest oil state, Texas
course

led in the production of 100-

Vice President and Di¬

When the army

rector: and info

following1 year
appointed Department Sales
Manager of the Metropolitan New
York area. Since March, 1939; he
,was

served

-Executive

President of the company.
;

call went out for

cotton acreage,

rubber, Texas became the Butadiene

has

war

more cotton,

ready with the world's biggest

powerhouse of war.

the appointment, in 1927, of De¬
partment Manager i of the New

elected

and

cotton

parts of the coun¬

try.
L.In

When the

many

just "Texas

Mr." Petefsori Is

train

and

navy

had

flyers fast, Texas weather

vided almost the maximum of

'Vice

pro-

flying

octane

Director of the

National Tobacco Co. of Canada,
the Irving; Trust Company of New
York, is a member of the Union
League Club and lives in Green¬

for planes

well

leum produds.

hours.

•>

gas

countless other war-essential petro*
Yes, Texas had what

needed

war

got

—and beyond that Texas has the

hungry, they called for Texas beef,

rails and docks and ports to ship its

When

the

army

and

navy

■ •
_

!?&£

_->V

*>>

&*■

if-

products to market everywhere.

^l"" '

,< A

*t._

* v *

t1/

___

wich, Connecticut.

WilliamHuckel Heads

Santa

NY Fin. Advertisers
William
cashier

Bank,

Huckel,

the

National

elected -President

was

the New

York Financial Adver¬
tisers at the association's annual

meeting.
Other

officers

elected

were:

First

Vice-President, P. Raymond
Haulenbeek, Vice-President of the

officer

Trust

Co.;

the

Missouri, Illinois, Iowa, Colorado,
Mexico, Arizona, and California.

Continental

Secretary,

Lee

Hofnney, financial advertising

manager*of the New York Post;
and treasurer, -■ Robert J. Stiehl,
,

Directors of the 1946 term were

elected

as
follows;; W. Francis
Gerald,- Emigrant Industrial
Savings Bank; Charles C. Hull,
.

Fitz

American

Institute

Banking;

The NevK York
Times: Louis S. Lebenthal, Leben-,
thai Co,; Mrs/Isabel B. Murray,
B.

Leather,

| Hudson: Advertising
dore

Norcross.

Co.;. Theo¬

Bank

New

York; Dudley L. Parsons, of Dud**

ley L. Parsons, Public Relations;
S. Sims, Albert Frank-.
Guenther; t Law;
Inc.,;! Ruel. S:

Russell

Smith, Time, Inc.;- and - Edward
B. Bturges 2nd, of Edward B,
Sturges 2nd, Inc.
i
j
■

Following
the
elections > the
meeting was addressed by Merrill
Anderson of the Merrill Anderson

Co.,:

advertising

Anderson :-;

ideas

agency.

outlined

Mr.

twenty-two

bank public relations.

F. L. Salomon

Admit

F. L. Salomon & Co., 30 Broad

St., New York City, members of
New. * York Stock Exchange,

V the

will

admit Jesse

nership

Marks

Feb, 7.. ;,

part¬

Galveston to Chicago^

provides rail service between the Lone Star
State and Louisiana, Oklahoma, Kansas,

^eastern Representative b£;Banking.
'

TEXAS

Texas, with automatic block signal protec¬
tion ail the way from

North River Savings Bank; Second

Bank

Fe, a Texas -partner and booster since

Vice-President, JEarl, S. MacNeill,
trust

LINES

1880, and operating 3,698 miles of rait in

assistant

an/

Chase

SANTA FE

Serving Texas anc! the Southwest

Mew

Speaks After the Turn of the Year

Business and Finance

■v«\."•

(Continued from page 548)
Our industry is now

in a position to supply (iyes for tex¬

plastics, ink,,;
gasoline and film; among other products; It is alsp en¬
gaged in, producing textile auxiliaries which will water¬
proof, mothproof, flameproof; niildewproof and shrink-

tiles, paper, leather, fur, paints, woodstains,

proof textiles.

istufs.

Pur own plant at

told

Eensselaer,'few

now

make

J"., is producing 800
intermediates. "All
3,700 different dyes and dye inter¬
.

In addition to the scope
more

our

production we became

Our re¬
laboratory, for example, developed dye making

ciency; of,

various

our;

The

Brake

work.

now on

hand.

r,>

-i

•

V-*v'

■'

^• »

•'

i•

•

the

construction; of new equipment, the

now

has

secured

clear.

its

'■

While;

where it is expedient fort them to curtail dheir

'•■■■■"

indications

point to exceptionally large sales of
purchased by the consumer. The reasonrfl

* •

history of

one

have

been

W^ ^

country. Considerably
hundred} billion dollars

our

over

saved

during the war
full employment, high
^price itself out of the market"?
It maylbe -said- that V wages and lack of consumer goods;
related chemistry, as well as in the development of new
the la?ge accumulated demand arising out of the war.
Although the lifting of man.y re¬
precludes the possibility of goods being <■ priced out of ; strictions on production have tre¬
and more effective dye ^making processes.^
the market. Buyers' strikes commence, howhyer,;When
! America's lack of skilled dye chemists was a handicap
mendously increased department
eyerything looks most favorable, not at the bottom of a
store
sales, there is still a t very
to our development of a self-sufficient Amencamdye M
limited supply of consumer goods due
^depression.
,
'dustry several decades ago. Today, however, we havea
to strikes and shortages of certain raw
During' tne war the railroads made extensive surveys
Wcleus of highly skilled'dye chemists andtas part of
vt o determine the desires of passengers; with; respect tq ; materials.
Increased sales made pos¬
the cars to be built, after the war., This information has
sible through increased ^production
■continuing research activities in this important chemical.
in 1946, naturally means a greater
been used fas a basis for the. designs of the cars now.,
field, we are training hew cliemists and research "spe¬
demand for wrapping paper, bags,
being built. Passenger travel is still at peak: levels' but
cialists.
when redeployment has been completed and other means
boxes and most every other paper
In a period in our country's industrial life in which
of travel ate mqre generally available* will the public
/product..
*
'i
^ : v
continue to ride
color is expected to play an increasingly important role
Inasmuch as our studies indicate
jin large volume in^the cars: into/which f
that
consumer
sales will continue
•its ideas have been., incorporated?
This question cannot,
in thousands of manufactured goods, it should be com¬
Alexander Calder
be answered at this time but will be a factor, neverthe¬
heavy for three or four years, and
forting to realize that today- our -dyestuff industryTs a"
less,: in the orders which will; be placed; a year or do V; because of tho backlogof demand for y y y ,;
World leader., Moreover, through constant research, we
hence.•; It; should, be nptedy however, that, air brakestfbr
paper goods considered "non-essential" during the war
v *;
passenger cars are not an es
important i element
' '4 "
(Continued torn page;552);
'plan to maintain our leadership,
"•
where

necessitate

gaged in fundamental research into dye making and its

;•

President, Union Bag & Paper Corporation
All

all commodities

capital

expenditures in order to maintainart adequate working
'capital position? Will higher wages apd. material costs

ALEX CALDER

large reservoir of demand has been

rests on our country*

staf of chemists and physicists is constantly en¬

is not

during the war, the release
L. R. Burch
depend on the conditions
prevailing at the time present orders
are delivered. Will increased operating costs arid wages

To this end,

satisfactory rate of operations for the next few months.
The present economic unsettlement of
prices and wages
could result, however, in
maladjustments of a serious
nature which would be reflected in our future
order

of this will

central research laboratory

; a

built up

Its future, too,

Own firm now has its own

The future

of scientific research.

ability-to continue its ■ dyestuff research.
our

Cqmpany

share/

improved the effi¬

synthesis of dyes had its genesis in scientific deveV

opment

from

Company is

equipment have
been ordered and The New York Air

manufacturing & operations

dye industry is the child

Aside

•

Air brakes for this

through the employment of techniques developed in our
research laboratories,

V ?■

Company's air brake products is sub¬

deliveries of the orders

techniques which have cut down processing time in va¬
rious manufacturing operations.
We learned to make
maximum utility out of our plants and

Vtff

proficient manufacturers during the war.

■,■

Company's sales and earnings; especially when I
compared with the freight equipment operations.
}

Our plant at Grasselli, N.

t/ "

■

different dyes and 700 different dye

mediates.

President, The New York Air Brake Company
Demand for the

4.A

the

experiencing an appreciable demand$
for freight car brakes from the program of
ject to several influences, each of which will have an im¬
replacing all F
old types brakes with the modern "AB"
portant bearing on the future. The strain placed on the
equipment.{
railroads by the exceptional wartime
This program was initiated by the rairoads in 1934 and'
activity and the railroads'- inability
;; was originally intended to be completed by Jan. 1, 1945.
to .secure new ; equipment or make
The period ;of low earnings for the railroads which fol¬
repairs commensurate with this wpr lowed 1934, and subsequently the wartime material ;
time activity are well known.
The
v shortages,
prevented the fulfillment of this schedule.
desire to improve equipment has re¬
'•■It is estimated that*at the end of 1945 about 58% of the
sulted in the placing* of many orders
country's railroad owned and private line freight cars*•:
for freight > and passenger cars and
-had been equipped with "AB" brakes:
The old type
locomotives since the end
of the
brakes are now being replaced as
rapidly as productive
Japanese War.
This large initial
capacity of the air brake companies and shop facilities
volume of orders had been expected;
of the railroads will permit.
*
1 r
;
i
It will take perhaps a year to make
yyfTji summary, unfilled' orders now appear to assurd

different kinds, of dye-

turning out -some 1,200

ts today

LOWELL E. BURCH

;

such

price increases f or^quipmqftb?as

;t(\

because

BREWING

CORP.

AMERICA

•

CLEVELAND, OHIO

THE COMMERCIAL & FINANCIAL CHRONICLE

.Volume 163 % Number 4460

readjust tariffs to present con¬
ditions.; and
postwar; realities.
Therefore, r; the United States is
prepared to enter into negotia¬
tionswith v foreign;; countries ^fbr
the mutual lowering of excessive

What Post-War Foreign
(Continued from page 528)
briefly the" conditions in
foreign trade as they, prevailed
during the war years. For several
Reasons, wartime exports; and im»
ports were - subj eqted to rigid
government Controls. Most mate¬

Scribe

short

sup¬

ply, and their allocation 'for

both

rials

were

in critically

had' to
be managed most carefully. ' The
.conduct of the war placed inces¬
domestic and foreign use

■

sant

demands

upon v; our,

certain rules of

Of the country, were

jA.mericari

>h through
*

Nations, '■ Organization/ )now /> a
functioning body. - A highly im¬
portant division of that organiza¬
tion is the Economic and Social
where

the

nations

.a .
of the

;

world

exchange15 information r

can

and

views, and perhaps agree on con-'
certed action to mitigate or to

dens on international commercial

The

Department

State-lias already invited fourteen
to attend a conference

nations

several months hence for the pur¬

of concluding trade agree¬
ments and discussing broad com¬

pose

mercial

policy

proposals.

there
should
be
good
probability that foreign suppliers
will find the American market

result,

accessible than it has been

various • prob¬
international •• trade • as

in'the pa§t. At the same time* our

they 'existat; present) and/asAthey
will. undoubtedly arise' from * time

abroad, fewer barriers to Ameri¬

completely

solve

lems

dispatched to

to time.

Barriers

Tariff

government and the governments
of the importing nations. Imports
Into the United States during the

ning again to'*eixert 1 a
fluence.xWithw

?direct%ih$

Sight, Congress;: in" the > Spring; of
.

f rade

can

products and to the healthy

eign Countries rin a non-discrim-

;

ending1 of: the ^war4 has
raised again ' the issue of itariff
barriers, since; tariffs are begin¬
The

1945>

foreign .traders should encounter

conduct of their business, in for¬

or;

Lend-Lease, to the1 forces
Allies^

Other* commercial vorders^
parefully screened rwith a i view
to maihtdmihig^he ^e<b^mies : of
friendly
nations,<-.\we re*' filled
through - somewhatv more , normal
channels,b u t always; hedged
hbout with the restrictions of oUi

forum

constituting

Council,

try;

elimination of discriminatory

the

relations.

cargo

fighting) forcesV

duties and restrictions, along with

is,'emerging;-*-; Y. Y:* vt:
At the top, there is * the. United

SombVcohimercial
Export shipments' moved) through
foreign
government'1 purchasing
baissions established: in this ;couhof'our

practices which place Unfair; bur¬

tended with continually. Interna-?
tional monetary» operations were
limited by meticulous controls,
The bulk of materials shipped but

m p 0

tual-advantage for fne'post^iran-)
sitiori period. A definite pattern

fleet, so that a chronic shortage
pf shipping space had to be con¬
v

fair play and mu¬

trade-hampering

arid

.-the

renewed

;-Reciprocal

Agreements < Act,*; and' re¬

vitalized

nation's•; interna^

the

tional bargaining power by

relaf-

)ng the power of the executive to

inatory;; basis. Shortly after the
trade agreements meeting, present

plans', call for a full dress United
Nations- Trade

V^iicli neven

Conference,,

more may

plished;] toward

b6 accom¬

opening

the

channels) of world commerce in

mended
mer

Needed

is (also

for

its

action

with

Sbristrrictive

policies

widely ad¬

conservative
and
capable management, should be in
a
position to contribute in large

Export-Import Bank
500,000,000.
In
many
countries

there is

to $3,foreign

stability of the

participating nations.
pattern, then, is shaping up
an extent that warrants much

various

Many

of these

countries, although tem¬
porarily distressed due principal¬
ly to the: ravages and dislocations
of war, nevertheless present op¬
portunities for sound business at
reasonable risk in the develop¬
ment of their economies and the

tional
for

future of interna¬
Opportunities
sustained and growing for^
the

for

hope
a

commerce.

eign trade are at- hand. The ques¬
tion arises as to what American
and

do to
from

should

promotion. of American foreign
trade.
If past experience is- a
guide to the" nature of future op¬

business

erations, the Export-Import Bank
can
be depended upon to select
risks with prudence and to ad¬

foreign trade outlook.

can

attain the maximum beneifts
the

potentialities inherent in the
,
j..

Peak Demand for U. S.

Goods

broad statement,
which will ibe mutually benefi¬ as a means of introducing con¬
sideration of business procedures
cial. The operations of this .gov¬
distinguished • from national
ernment ; bank supplement; rather as
thgn compete with private bank¬ policies, it can be said that there
exists today throughout the world
ing business.
Recently, ;the world financial a demand for American products
institutions which have come, to that far exceeds anything here¬
be
commonlyv known
by) the tofore experienced. Continuing to
name
of
Bretton > Woods, v came speak in broad terms, it is also
into
being : upon having - been true that at present one of the
principal £ difficulties in export
ratified by ist sufficient number
lies in. obtaining v goods to ship
of nations. If• 'trade barriers1 ere
abroad," rather than in locating
reduced, ,if. bonstrucAlvet. policies customers & for
available • com¬
vance

Making

dollar credits for purposes

a very

The

modities.

economies

situar

prevailing

tion of supply is

arrif)fbliowed, these two institu¬

probably tempo-

(Continued on page 553)

tions, the International Monejtary

to the business develop¬

measure

ment and financial

critical need

of American dollar credits.

under

ment,

sum¬

expanding the capacity of

the

Develop¬

and

Reconstruction

for

be.'com¬
last

and the International Bank

Fund

Abroad

rational" and to; maintain' domestic

accordance

hered to,.

Dollars

Y Congress

years were as carefully di¬
rected by government as were ex¬

War

ports. Procurement of strategic
tnaterials became almost wholly
& governmental operation; Othe:
commodities / were;, brought intc
the country by

♦

government cor*

to
be
distributee
porations,
through private companies, al¬
ways with the success of the wai
effort as a guiding policy.
Be
Cause of actual governmental op¬
erations in purchasing) and im¬
porting foreign supplies,
cause

were

and be¬

imported materials
controlled in the interest,
other

of the war program,

the effects of

American tariffs oil imports were

Negligible.

Purely

ert their customary
*'

commercial

also failed to ex¬

considerations

influence.

Controls Imposed

World Wide

Yr. The steps taken by our govern¬
ment to control the movements ol
goods and ships were duplicated
one form or another by most 03
the other nation^ of the world.
As a consequence, : the impact ol

;iii

peacetime economic

and political

forces which guide the interna¬
tional exchange of commodities
biid services were ^virtually., sus¬

pended.** The- splendid victory
^cjhieved by the, United Nations,
Jiqwever,
somewhat
abruptly

¥:;:::::W:

entire
situation. Once more it has be¬
come possible for plants to start
to, produce the many articles in
demand by civilian populations.
jShipping is becoming increasingly
sVailable to carry supplies in
peacetime commerce. Export and
import controls have been sub¬
stantially relaxed:* The American

changed the aspect of the

,»v.:;v::

Government - has: withdrawn from
much of its wartime export and

These

injportf activity. | Lend-Lease has
>

been terminated. All these

factors,

are

welding electrodes.. ;, even- smaller than,

musiciasfs taton.)v,yet many, ixioaerji giants

together with others, - including
| drastic political readjustments and
efforts to mold the .United Na¬

streanili»eisi

—

Without*

cient/ simple^

in war,

sticks of coated metal;

£'•

respect

there is a

endeavor

assembly/-

cjialists

are

arc

t^ady to assist you, top, on any

welding ihas:^ become indispensable to

answer

the

Arc Welders

Electric Ifoisft

Welding Positioners

Excovbtort; •
■

Welding Electrodes

Milwaukee 14, Wisconsin

P&H electrode to properly

need.;/;'f^

Here at P&H, leading

metier

well

as user

MMfi

welding electrodes - and - equipment, the fabrication of
.

prpblemj

Manufacturers of

Ov«rh*ad Cran*»

Today, whatever the task may be in joining or sur¬
facing metals, there is

technique—fast, effi¬

And in shops all over the world, P&H
solve literally thousands upon] J
welding problems.; P&H welding spe*r | V

provide maximum ^ strength: with minimum weight;

to) foreigntrade,

■■

joining metals in the largest-battleship or the smallest

tremendous amount of
being expended to set

concept*©!

which

world
at the present time, including the
difficulties confronting us here in
the United-; States, and without,
overlooking the ^ possibilities v of
unfavorable or > even disastrous
f uture developments, I should like
to take this occasion to place some
emphasis upon the positive, favor¬
able elements in the picture. For,
with

thousands of

^
new

moment ^discounting

the gravity of the problems
exist in many areas of the

know-how is helping lo.

contribute to the ^fluidity of the
situation > which Imentioned a
few minutes ago.
t

....

reduced to modern production

tions together in peace as

jail-welded cranes/hoists and excavators has been

ships,

tb^ir trim Imes and rug-

f&iiei \ i C

WELDING ELECTBODES

mmm
ELECTRIC CRANES

ARC WELDERS

EXCAVATORS

vst 'A(

,•*777':

:-V

THE COMMERCIAL & FINANCIAL CHRONICLE

.552

Thursday, January 31,1946

Business and Finance Speaks After the Turn oF the Yeat
.

The total
will

now

(Continued from page 550) '■
M ;S ""
in the paper industry for at

•

look for good business
least three or four years.

O.PA.

certain grades as

duction for

the

United

the

ended,' shipments of pulp

wrapping

paper

extreme shortage

States

from

rather

Scandinavia

The

paper

which

seems

will

is true

4,940,000 tons

—

6,125,000 tons

budget.

ness

Philco

Corporation

products

in almost every company

pediting
and

materials

raw

getting

and

parts

The time will come, perhaps soon¬

than many now think, when the
tremendous productive capacity of
the United States will overtake this

pulpwood

cut in the South during the past year has been cut by

May 1st,
it is

these

The U. S. Army is planning

prisoners between March

1st and

that unless they can be replaced promptly,

quite probable production of pulp and paper in this

country will be decreased to a serious extent.

factories

our

operate at

trees, but a lack of labor, and unseasonal rain

repatriate

wants and the urge

consumer

and

concerns

needs

for

al¬

most J

busi¬

the

ease

•

with

additional

operat¬

by the issue

J. Luther Cleveland

.The main financial problem in 1946, and probably for
time .thereafter will not be to provide adequate
to. avoid • the monetary
instability

credit ■ facilities but
and

disorder that ;so'often result irom ; wartime-credit

expansion.

;

.p.'<

If this objective is to be attained, it is esf

sential that the Federal budget be balanced at the earli*

erator and home freezer market.

Right

limited

some:

to buy,

continue

are

banking system, however, Is lodged with the Federal
Reserve banks, not with the commercial banks; and the
actual availability of the excess funds as a base
foi;
credit expansion,, therefore, depends primarily on Fed-*
eral Reserve policy, ?: For some years this
policy has
been dictated by the Treasury as a means of implement¬
ing its purpose of borrowing at low interest rates.

is on ex¬

production.

our

some

,The banking system as a whole is in an excellent po¬
sition' to meet any probable; increase in credit require¬
ments. The ability to: create excess reserve funds in the

high level and maintain
national prosperity.
Farsighted management is laying
its plans on a long term basis and I
James H. Carmine
predict that in 1946 you will see the
greatest: volume of newspaper, magazine*and radio ad¬
vertising in the history of this country. We are laying
our
plans at Philco " along these lines; and expect to
maintain our percentage of the radio receiver business
and greatly increase our share of the available refrig¬

German prisoners-of-war.

the

loans

ing ftinds can be, met
of securities.

is of

are

ex-

which

tremendous propor¬
tions. Even- the task of sampling dis¬
tributors and dealers and filling up
the "pipelines" will require several
months. So the immediate emphasis

adversely affected because
This shortage is not due to a

Approximately one-third of all

costs

permits

enterprises have increased sub-

ness

radio-phonographs, re¬
frigerators, ^freezers and all other appliances#will in¬
crease rapidly throughout 1946, Demand for all these •

summer.

this
gradually;

•

strong cash position

Production of radio receivers,

both pulp and paper will be

last

until
that

that

Govern¬

pansion in

temporary demand, and it will be up
to
advertising, merchandising and
old-fashioned selling to create new

lack of

level

means

and

additional
increase
is
likely,
though the amount of probable

Charge of Merchandizing,

Increased demand in this country for paper and board
during the first six months of 1946 will result, I believe,
in a shortage of pulp, paper and board.' It is quite pos¬
sible, furthermore, that production in this country of

shortage of pulpwood.

degree
a

This

fi¬

expansion, in ba?'ik re¬
deposits is, therefore, to
be expected in 1946, Loans to busi¬

the

sources and

.TAMES II. CARMINE

5,600,000 tons

TOTALS

deficits.

nation's,

approximate balance in the Federal

immi¬

products.

Vice-President in

440,000 tons
360,000 tons
4,800,000tons

625,000 tons

part

and

the
to

stantially since "V-J Day" and

Six Months '46

560,000 tons

diminishing

beyond June, higher prices will be in. order on many

large

-----

Imports from Canada
Imports from Europe
U. S. Production

emergency
costs,
cntinue to be true in

reduced to

there is strong likelihood that if O. P. A, continues

paper

Estimated 1st

CLEVELAND'S;^

Further

quantities because inventories had been accumulated
during the war.
A great many people expected
and probably do expect that heavy imports of pulp will
have a bearish effect on pulp and paper markets in this
country. This, however, is not true. As a matter of fact,
and as shown by the following figures, I believe that
pulp imports during the first six months of 1946 will be
less than they were during the last six months of 1945.
Last Six

tasks

continued

ment's

there

Months '45

has

nancing

pro¬

In view of the

and grocers bags.

of pulp and

same

of' the

one

banks

nent and which is likely to continue for some years to
come,

came

Newsprint

expenditures

emergency

example, due to the scant profit under O.P.A.

bags, will be increased.

war

compared with others.

J. LUTHER

Although the end sof. the, war has brought sweeping
changes in industry, it has not put an end to Federal

industry,

paper

of- the inequitable profits allowed on;

ceilings; has been radically decreased.

During the war paperboard production was encouraged
because of its importance in the war effort, whereas the
production of many other grades was discouraged.
The
production of grocers bags, for example, at the end of
the war, was 50% of normal.
Now, paperboard produc¬
tion is decreasing slightly and the production of grades
grocers

President, Guaranty Trust Company of New York

have seriously affected the production of various grades

board, with about 8,400,000 tons distributed among other
grades.
■
: - i i
• - 1
Barring strikes and raw material shortages, I assume
the over-all production in 1946 will reach about a million
tons more, or about 18,300,000 tons—probably about onehalf paper and one-half paperboard.
'.

When

V :

unable to secure enough

days.,

seven

running five days

are

still in effect in the

ceilings,

of paper * because

paper

less, because they

pulpwood to operate

production of paper and paperboard in 1945
over 17,300,000 tons. : This will be the

little

highest U. S. production of any year in history excepting
1941.
About 8,900,000 tons of this product will be paper-

such

mills in the South

many

week,

HSsjt possible moment and kept in balance thereafter.
The

might
look

outlook
seem

for

further

expansion

for1 bank

the present jlow

bank

earnings.. Improvement in this

will, however,1 be restricted by
long

credit

to imply a correspondingly favorable out¬

respecf

number of factors.

rates continue,

bank

holdings, pf; the older :Government securities; with

highi

money

(Continued "oh page 554)

"?r;

'*77';77;77:77

7.^7777;

jj,

Our

principle of doing business!
There is»
At

■'/}>

simple, logical principle

-'C-',>>•<1

•

c -.'

'•

It is the

ducer

' 3

*)«/

food. This way we can

upon
*

consumer—without waste,

' 'r; i'>

objective of Safeway

This way we can pay

which Safeway Stores operate.

v "ts

* y';#

,*r*t

take goods direct from the

■

-y

pro¬

without loss of time.

the producer the fair market price for his
"

jf'M

bring the

7-. i:V

consumer

\t I

V ^

-n

7-:

miWih'Z

fresh, quality foods at sub¬

stantially lower prices.
Wc have

secrets

Safeway. Our policies toward the farmer,
7 ;:

banks, labor unions, brokers, manufacturers,
t:
•

•«

etc;, are

clearly: printed in

interesting booklet,entitled, "SafewayPioIicies,'.;^ It's available to

III

°RC at

Iff

I
r

any-

SS-Ml

|:|

|!{
lii
III
...

any

time. If you would like

a copy

of this bookj write Safeway

Stores, Incorporated, Box 660, Oakland 4j CalifofniaJ - We'll be happy •>
to

77 .7". rj

JL
S22

send you one,

V
•i

1:5
III

free.

...

:::

SAFEWAY

"f.r

^••7 f\.

NEIGHBORHOOD FOOD STORES

si!

w»«MMHI«HMaW^^

Volume

163

and another with 'the
Kingdom is now pending

before

What Post-War

Trade

Foieig^ f
Might Mean To Ds

the

and

should
■

ate

pointed out that there

well established/ Suc¬
companies in the United

many

cessful

ished

and to ' expand their
programs
where feasible.
They
have a highly practical knowl¬
edge of the best methods of con¬
ducting foreign > trade which I
shall endeavor to review, hoping

foreign destination, or

tionships,

that such^ a: summary r may

value to some of you.
■;

many

current

large

matters

' In

consideration.

American

Lease credits of

developing foreign markets,
but I should like to turn now to
a

history

the

Government
world

first

War loans

Lend-

the second

broader problem of commercial

Dollars made

century.
go

private

investment

obtained

countries.

allied

repayment cannot be

by the board and are lost for¬
ever,Dollars: made available for
sound economic purposes, through
prudent

allies, or the

Their
reasonably
expected. In contrast, economic
loans
are
productive of useful
goods and services, and their con(Continued on page 555)

ing

available

the terms and conditions on which

our

services

by virtue of such loans or credits,
are used up in the destruction of
war
and the maintenance of liv¬

part of our overall war effort

and

materials

war

nancial agreement and have noted

perhaps in¬

Economic Loans Productive

loans

and

war

compared with sound private
foreign loans and Export-Import
Bank credits of the last quarter

policy which is currently receiv¬
ing much attention.
I imagine
that all of you have been reading
about the British-American fi¬

parts for final assembly
abroad. Sales and advertising ex¬

standards elevated.

the

potentials hvae been
and living

Trade

rower.

increased and realized,

are

reflecting

and

dividual

enter significantly into this
development. As to foreign costs
of production, these of course are
not normally available,: but the
pense

be of

the

of our
foreign loans, we note that a
sharp' distinction emerges when

down

the

international

goods;
articles
knocked
be reconstructed at the

proceeding with their plans to
maintain
foreign business rela¬

are

Foreign Rela¬
;

siderations which are encountered

given to ascertaining the least
expensive method of shipping-—that
is
whether to ship
semi¬
manufactured or completely fin¬

Export-Import Bank, by and
have proved of long-term
benefit to both lender and bor¬

would

foreign trade. There are many
other
day-to-day business con¬

States, accustomed for' decades
past to i meeting unsettled condi¬
tions at home or abroad.
They

facilities

extended to Great Britain, as one

These, then, are k some of • the
procedural methods which have
been found advisable to follow in

tising, as well as monetary; ex¬
change rates and regulations are
all brought under strict
consid¬
eration.
Special attention should

in character, born of the war
the aftermath Of war. • It

Senate

tions Committee.

(Continued from page 551)
rary

credit

dollar

United

ratified,

553

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4460

ai.yyiW!^V.M»M»V>'««,<^'

guiding factor in any event is the
selling price of an article in a
foreign market.- Intelligent guess¬
work by representatives in any
given country should provide i a
reasonably accurate estimate bf

Commerce Dept. Can Help

'h Wisdom, It is said, is the distil¬
experience, and experi¬
ence in foreign trade
shows that
each
customer -in each foreign
lation of

profit margins, from which Judg¬
ment may be made as to the pos¬
sibilities of having to: contend
with drastic price-cuts.. v .
In dealing with the problems of
goods is high is hardly! a reason¬ transportation, frequency of ship¬
chiefly: on
able basis upon which tq decide to ments .will. depend
regular
enter the export field for the' first stock * turn-over. V Once
time or-perhaps to seek foreign
shipping services are again avail¬
markets for new products. .: In able;'there is not, in general, any
proceeding with specific: analyses necessity to go beyond the check¬
of demand in foreign countries, as ing
of sailing dates whbn; the
when to
well as man/ other factors of question arises as to
companies ^maintain
overseas distribution, the Departs, ship. .Some
ment of Commerce can supply in¬ their own freight forwarding de¬
telligence
concerning
thei past partments; others? rely upon' in¬
for¬
export sales volume of thousands dependent foreign i freight
of different products; in, dozens of warders of : which there are many
different countries, and
a
vast dependable ones offering their'
amount of other related informa- services. As .between competing

presents
an ; individual
i problem which; must be tackled
as such.
To say, for example, that
demand
abroad c for 'American

...

market.

-.YY.Y

>■

■

■ •

Y.;

Many companies, particu¬ steamship lines; freight -rates are
the larger ones, will de¬ found to be rather uniform, due
pend to a great extent upon theit to the prevalence of conference
Transportation difr
representatives abroad,: with in¬ agreements.
f iculties ^will be greatly reduced
formation obtained from govern¬
ment and private* sources serving if the buyer gives practical ship¬
to round out a reliable estimate ping instructions which are clear,
carefully
followed.
Care
of the prospects ? for successful and
business. If the item in mind has should be* taken, incidentally, tp
no
significant export record, in^ see that boxes and other contain¬

tion.

larly

formation with respect to com¬
parable products may be obtained
and found useful. Such informa¬
tion should throw much light on
future export prospects of spe¬
cific products.
However, many
factors enter: into a sound calcu¬
lation Of foreign business possibil¬
ities/ To what degree have new
Industrialization and other re¬
cent changes in foreign areas af¬
fected sales potentials?
What of

ers, as well as the merchandise
itself, bear all legal;markings in
conformance With the laws and

Coty takes

separate

each

regulations
1

country.

.<5>.*V1''4>

•

.*--

;'.s y']/

•>,: ~:

-A..

:-v-

Individual Consideration

planning terms and credits
in export transactions; the rule of
considering each customer in each
market as an: individual problem
In

4'
■V.

particularly: pertinent. In addi¬
tion to reports from agents and
Competition from other outside
direct head office contacts, advice
sources? Have fashions changed?
may be sought from any of the
To find the answers to these and
well established banks ' conduct¬
many other questions, if the sup¬
ing
an
international ' business,
plier is not: equipped to conduct
from local foreign trade: organiza¬
the work, it may prove advisable
to employ the services of an out¬ tion, from credit rating organiza¬
side .' agency. A detailed market tions/ or from a World Trade Di¬
rectory. Report of the Department
analysis of various foreign areas
of
Commerce, or all -of these
for. some : particular product or
sources'may, be consulted to de¬
group of related products may
termine the standing of a buyer.
be obtained from established sur¬
Special attention should be given
vey services, competent American
to
ascertaining the exchange reg¬
export merchants or foreign im¬
ulations in force in any given
port houses, or consulting engin¬
eers.
Here again, the Department country;. It is worth while noting
that credit losses in foreign mar¬
of Commerce should always
be
kets average lower than similar
kept in mind as a source of help,
losses sustained oh domestic busi¬
The Departments - of State and
Commerce at the present time are ness,
A vital consideration in plan¬
cooperating in a' review of the
activities of the foreign service ning procedures in foreign op¬

natural pride in its position of leader-

: •-'i

skip in tke perfume and cosmetic
1

<*>&*"{■'

' >

V'i:

***
•

*fv£

•'*

'»

1 >

•

•••

industry, nationally
\

.'V-..

•

' '

...

, ,

> • ^

V-Jj': v;' ••'

i'>'i■■

■'

■"

■

and internationally.

Puklic respect

for Coty quality and Coty prestige

''''''.:.•

kavc rcacked
;

new

Our

■/

-'v,:-i

keigkts—a recognition of
Wk

' :

our
r--..

■

standards under all circumstances.

compromising
J".**"* Jr**r

' •:-i/

:'V;

lit

vB'*ix" "-V/'B

'-xBv

1,,r'*.!' "*v

(

policy reflects

our concern

"v;

;

V'./" ' V

s'f

witk tke kroad

of. the United

States, with the ob¬

ject in mind of modernizing this
service to provide much greater
assistance
to
American foreign

erations is the matter of

Local

tax

both

laws,

future/ not only witk tke

taxation.

corporate

'/i

•'

B -vf- c

'y*

limited

\'tr,.

present.
>'1B

^' '"i'' '/B

/ KA

•

personal, should be carefully
investigated, for these may have
an important bearing on the ad¬
trade.;
•/;>,}'
- / f
visability of establishing a branch,
i Competitive Production Factors
plant abroad, of maintaining rep¬
and

|. Occasions frequently arise
which

found.: advisable

some

fice ih hforeign country,, as

competitive position with

exactitude.

A determination

able

taxation has
most

;

raw

materials costs, total

problem

double
long been among- the

international

ly by referring to prevailing wage
scales in each country.
Factors
as

The

business.

eliminating

difficult

for

which

INC.

find

Much relief
however, through .the

adequate solution.

is promised,

costs

of processing per unit, and
costs of packaging, warehousing,
^wkmg for shipment, transporta¬

negotiation of special tax treaties
to alleviate excessive tax burdens.

tion, insurance, sales and adver¬

France

**<>

well
upon the whole broad question
being able to conduct a profit¬

of this sort cannot be made mere¬

such

of¬

the fiome

resentatives

/compare American and foreign
production costs, to determine a
relative

from

Recently,

such

and

treaties

Canada

have

•<V>

«:

^3:

•

with
been

"■•asp.*'

••

f^n

THE COMMERCIAL & FINANCIAL CHRONICLE

554

Speaks After the Turn of the Year

Business and Finance

This is the chief source of economic

(Continued from page 552)
>V J|j| |
er
coupon
rates and partial tax exemption, will; be
gradually replaced with obligations yielding income at
current rates, which are substantially lower than those

Thursday January 3 1* 1946

inflation in time to permit us all to continue to enjoy

progress^ 'It is the

the good things so. many lives were lost to defend.

competitive system, i It has made our country
economically great.
It must be better understood by a
larger part of our people or we may find ourselves legalfruit of

our.

CLINTON H. CRANE
President, St. Joseph Lead Company

Recoveries from doubtful

assets held over from the de¬

At the present time there is a shortage of lead in the,
world,, partly due to decrease in production and, partly,
to increased use. In the early years of the war, when f
lead was more plentiful than cop- :
per, zinc and tin, uses were found •'

JOHN S. COLEMAN J,

pression period have, for the most part, been realized.
As the Treasury reduces its working balance, a larger

;

President, Birmingham: Trust and.. Savings Co.

proportion of bank deposits will become subject to. re-.
During the period of hostilities' practically all the
serve
requirements and deposit-insurance assessments.
manufacturing plants in this * area- as; elsewhere were
r
•
! "
'
Finally, the abnormally low. rates of loss on loans and
engaged in production for; war pursecurities during the war period can probably not be
poses.Very few plants were built
maintained under peacetime conditions. "
K ;
in the Birmingham ^district strictly
These limiting factors are mostly long-term influences^
as war projects and their output was that will be only partly effective in 1946. Despite their
small in comparison to the* total vol- ' Ti
ume produced here,
graduallv increasing effects, it seems likely that bank
r - \
* T" •
v
There is no problem involved in
earnings" as a whole will be fairly well sustained this

where lead could be substituted for

them; for instance, collapsible tubes,
high lead, babbits and solders re¬
placing tin base alloys, lead plat¬
ing of iron in place of zinc and a

•

few

year, mainly as a result of further increases
ments and moderate expansion in loans.

in invest-,

the local plants from

ROBERT H. COLLEY

available

the

main

in¬

was

war

pigments, has been gradually losing
hoped that pending negotia¬
its
place as one of the principal
tions on wage questions may be com¬
uses of lead.
In the United States,
pleted at once so that resumption of ;p
shortage of labor has resulted in a
industrial production can go forward
drop of production from a peak of
immediately.
j
W' '
Clinton H. Crane
496,000 tons of mine production in.
;
The Tennessee Coal, Iron & Rail- '
1942.to 385,000 in 1945. During this•
road Company, subsidiary of United
past war, Government controls in the production and;
States Steel Corporation, announced
marketing of metals have been on a distinctly different
John S. Coleman
several weeks ago
the opening of
basis from any previous time.
While the OP A main¬
new coal and iron ore mines and the.
tains a ceiling, the high-cost miner is bonused by govern¬
construction of a new battery of coke ovens Jas Well as
ment payments to maintain or increase production.
As
the
addition of an open hearth furnace all of which will
the high-cost miner is of necessity a mine which pro-*
enable it to increase its steel manufacturing Capacity. duces the least metal per man employed, this plan-has
This is the largest center for the manufacture of cast
resulted in producing considerably less lead than would
iron pipe and it is expected that there will be a large
have been produced under a free market!
In the year
demand for this product when the cities and other Gov¬
1945 the average price received by the miner was 8 %0
ernmental
subdivisions and private concerns can go
per pound as compared with a ceiling price of 6^0 per
ahead with their plans for expansion.
;,
,
pound. There is no question at all in my mind that a
The lumber business is one of the largest industries in
ceiling price of 8%0 would have produced more lead
Alabama and occupies an important part in our economic
than has been produced under the present method. More*
affairs.
Due to price controls and wage differences pro¬
over, this low price of 6^0 makes lead seem cheap to
duction of lumber has been greatly curtailed for the past
the consumer as compared to some of the other metals.
few months but it is expected when these difficulties are
At the present time it .would pay a manufacturer of stor¬
ironed out the great demand for homes and buildings •
age batteries to buy United States lead at 6^20 and sell
will result in considerable activity in this line of busi¬
the; battery abroad. ; Foreign miners in Mexico and
ness for some time to come.
,W
Australia are receiving a higher price for their metal
than the few mines in the United States which are not
There are five large cement plants in the district and

products is ample for all users who
will, or are allowed to, pay prices
which will provide fair wages for
workers and yield nominal profits to
investors.
Moreover, products have
been improved to suit the needs of
better than ever before.

use

and it is

Mostly, the outlook for the petroleum industry is
encouraging. The demands of users may exceed earlier
expectations. In fact, despite war's, depletion of the auto .
fleet, the 1946 demand on the Ameri¬
can industry may be at least as great *
as it would have grown to be in the
absence of war.
Current supply of

There

present threat of shortage of
underground reserves of crude oil,
Probably no serious threat will de¬
velop in this generation.

But

uses.

along the lines
Where
was
already a • major
factor- -storage batteries, lead en! casied
cable
and
tetra-ethyl
gas!,
White lead, partly by Government
restriction and partly as a result of
higher price compared with other

than in several years

now.

lead

to peace¬
time operations.
Skilled and semi¬
skilled
labor appears to- be
more

President, The Atlantic Refining Company

users

reconversion of the facilities

the

minor

crease

Some of the difficulties which have

•

impeded the industry during recent
years, like the wartime loss of its
tanker fleet, have been removed.
Others, for example, the current
lack of

Robert H. Colley

meeting of minds of man¬
and
labor unions—an
experience unprecedented in the* industry—are in process
of solution. But another difficulty of long standing per¬
agements

sists and may further wastefully consume the energies of

it is anticipated that their products will be

Some day this difficulty also

the industry's personnel.

erection

the'slow process of education.
attacks upon the industry's
procedures and organizational structure.
No

may be dissipated, through
I refer to the periodic
economic
doubt

ways

its

the number of natural ramifications of its
organization. It is the one industry in which the larger,
"integrated", units perform all four major functions—

capacity.

appear

power

and water supply

in the best financial condition

has been made in soil conservation and in better

companies and individual citizens specialize in one or

for the diversification and

As
are

consequence

the

competition.
Such changes reduce costs and
product values, the benefits of which, as a
matter of the long record, are passed promptly on to
consumers.
They also keep the entire industry stirred up
and its

personnel on the alert, which: is simply another
way of saying that they maintain competition at high
intensity. Perhaps it 'is because of this state of affairs,

which I- believe is wholesome for the entire economy,
that the profits of the oil industry; as represented by rate

investment,

are

fine
with

one.

upon

Out

increasingly higher standards of welfare
>

I do not know how\ this faith

can

be acquired except

through knowledge which comes from a study of chang¬
ing conditions—trends of developments over relatively
long periods of time—over much longer periods than
those covered by the personal experiences of the majority
of business men.
The perspective gained by such studies
would enable persons charged with the administration
of

our

laws to understand such fundamental matters

as;

how economic forces bring about changes in the prices

of products; and how competition brings about improve¬
ments in the qualities and reductions in the costs of

products, a little here and a little there effected by indi¬
vidual companies as a result of their successful re¬

searches, and how these advances,
normal

operating through

stimulate
all
other
members of the industry who must learn somehow to do
equally well or be left behind.
4
;
competitive-

pari; in industrial and

Ifee niarket will allow the domestic and foreign econ-

omy

to adjust themselves much more readily than any

than 1,000,000

tons, about 385,000 tons of this com¬

ing from the domestic mines, 300,000 tons from second¬
ary sources,
ore

and 315,000 tons from importation of either

metal.

The y0ar

1946 will require

come

much, but

from is hard to foresee.

foreign lead is to be imported and the present ceiling is
to

maintained, the foreign miner must receive a

higher price from the Government, which in turn must
take the loss in sellihg in the American market at

ceiling price of 64fc0, So far

the

I know, no arrangement

has yet been made for purchases of this

kind, and Gov-

ernment stocks of lead, which were 275,000 tons in March

1943, at the end of the

year

1945 have been reduced to

75,000 tons, which obviously cannot
ing

far toward mak¬

the deficit.
VINCENT CULLEN

agricultural

CROSLEY, JR.

reason

Insurance business in the United States, has not been
,will not be exempt from the effect of world, wide

and

President; Crosley Motors
see

The consumption of lead

during 1945 in the United States is estimated at a little

President, National Surety Corporation

POWEL

peace,

why 1946 business cannot reach the

evolution of revolution brought about by World War
and the full effect is not ascertain-

11^

highest peak we have ever known in peacetime provided v; ,abie immediately.^
in+^^he American Public fulfills - its\ responsibility/ . The ' / The efficiency of insurance comin the
public responsibility in my opinion cannot be - empha- I f pany- management will be tested as
knows

►fd for faith
misunderstanding I see the need frir fai+Vi
system of doing business—faith that
the
system effects;the 'maximum of economic

progress toward
for our people.

Government responsibility, but with the return,to

production.

on .the part of the public and
the part of those in government, is a
the experiences Sf^l^^oh^indi^trv
*L,~~
•

American

that

before to take its full

I !'

and when Government was virtu*

just where this is to

grades have been improved.

rpisunderstanding

especially

production of crops. The rais¬

region.
The feeling here is that this district and the South will
materially benefit in any improvement of general busi¬
ness conditions and will be in better position than ever ■

somewhat lower than the

profits of publicly reporting; manufacturing and trading
companies and certainly lower than anyone would expect
of a relatively young, vigorous industry which has been *
enjoying nearly uninterrupted growth of demand.
Unfortunately this progressive industry, teeming with
fruitful changes, is harder to understand than a
simpler
business,
The line, between;a; lack of: understanding
and

methods

Institute,'-a .non-profit organ¬
ization with headquarters in Birmingham, is sponsored
by a large number of leading business concerns inter¬
ested In the industrial, progress of the South.
The In¬
stitute has employed a trained technical staff and is
now in operation.
Its purpose is to study Southern re¬
sources, the development of new products and to im?
prove the quality and technique in. manufacture of the
articles suitable to be produced and manufactured in this

enhance

of return

Substantial progress

The Southern Research

another* for making improvements which alter the pat¬
tern

many years.

they

ing of cattle has materially increased in this State and

of this type of organization there
countless opportunities, first in one division, then in
a

experienced for

war

iron-clad Government control.

to be available to consumers.
are

plant has added 150,000 KW's to' "a

production of raw material, transportation, manufacture,
sale and delivery. The complexity of the organizational v
structure is further increased by the fact that many
the other of the four divisions.

During the

ally the only purchaser, prices and wages must be

Company with the completion of

Ample electrical

The farmers
have

enjoying premium price payments.

•

and other improvements.

units to the steam

new

It stands alone among the great industries

with regard to

needed in the

buildings and in the construction of high¬

The Alabama Power

they arise out of the nearly unique character of

the industry..

processes,

•

factors
upset their
a happy conclusion.
-For exam¬
ple: The liquid capital of the American people and
American industry have more than doubled during the
war.
This, coupled with the fact that; we "did without"
for the past several years, has given us a tremendous
accumulated consumer demand with ability to pay which
will be augmented by the prospects of continued high na¬
tional income.
Also, we have been constantly learning
new
methods, and improving eld ones under the added
incentive of war time necessity.
These will improve old

sized

too

strongly

because

believe

the

basic

favorable that only the public can

inevitable trend toward

products and encourage the creation of
will also contribute

the

eventual

new

ones

increased

Although the foregoing is an optimistic picture, it
could be upset by public action leqfiing to runaway
prices and wages.
,

American to believe that he won't
son

and accept

before

the' years

that

lie

ahead and much depends upon force¬

ful, constructive management activ¬
ity during the year 1946.
1
f
The demand;; for new,. improved
and broader forms of coverage will

and insurance company
management must promptly meet
this demand; otherwise, the future
industrial development of this coun¬

grow apace,

try will be slowed down by reason of
of essential insurance protec-

lack

which

demand.

However, I have too much confidence in the

never

average

see the light of rea¬
his responsibility for avoiding disastrous

prospect is that, during the
1946-1947, rate and other reg¬
ulatory statutes will be enacted by
The

years

states

which

have

not

heretofore

Vincent Cullen

taken action indicated necessary as a
result of Supreme Court
_

decision in the SEUA case and

(Continued,

on page

556)

fffiiif

Number 4460

.Volume-J63

dealer

originally- distributed and subse¬
quently redistributed in large and
small blocks; of a mechanism that
develops and maintains a resource
through which investments may
fc>e liquidated at moderate cost and
V relative

provides

even

munity with

securities native
which

the

to the

vast system' of

The

not

dealers.

}

yours,"the NASD, New York Se¬
over-the-counter' curity Dealers Association and
of market¬ other regional, dealer organiza¬

market is the' creation

most

the

in New

York, we have the New- York
Security Dealers Association. The
purposes of the Association are- to

promote; and.

uphold

fair

the. past and] future
this country -is

principles of trade, to
maintain the highest standards of

equitable

business

for

alternate

the

withdrawn

retired

Jan.

partnership in Garvin, Bantel &
Co., Jan.

act

;

...

partnership in W. S:

Sagar & Co. on Jan. 31.
Julius

Bliss,

member,

the

Exchange, died on Jan. 20. r; r

;

in the

Porges and DeFine Rejoin
Hirsch After War Duty

for

alternate

Hirsch & Co., members

Martn

Haupt & Co. will

Ira

from

draw

Privilege of Townsend E. Allen
to

31.

Joseph J. Harrington will with¬

Martin
24.

member of

will withdraw from*

B. Schnell

from; partnership

firm, y?

;

date Edward

same

Pont

Exchange,

Stock

be withdrawn Feb. 2.

Michel

Harry W. Lunger, general part¬
ner.in Johnston & Lunger, Wil¬

DeFine

mington, Delaware,. will become
a
limited * partner effective Jan.

Porges
have

of N. Y.

announces

and

been

Robert

come

released from

armed services and have

the

that

be¬

re-associated with the firm.

point, let's stop to con¬

implications
the recent ."Ox¬

sider the.tremendous
that

and i: integrity

ethics

was

prosperity of godd;^ old."American way,' reserve
> x the; privilege to fight for what wp
■

act

DOherty of M. J. Meehan & Co.

'right

belieVe to; be right:

was,

John H.
withdrawn 5 on

William V. Driscoll,

the Exchange,

for

Privilege of George S.McNamee

predicate^:-/•

The "Oxford". Case J
At this

and

to know-what the rules
of the game are and, may I add,
if ' we don't' agree, let's in the
a

Jr.

Brooks,

which date Jane du

partnership in the firm.

changes: ;:v'::f^'
Privilege of W. Herbert Davis
to act as alternate on the floor

Scherk

31,

Lunger will be admitted to limited

The New York Stock Exchange

has announced the following firm

of, the: ExcKange

example;

For

Weekly Firm Changes
v

ability for local securities.
The tions. This is a problem, that
pattern is similar all over the we should all be occupied with.
country.
;; Business ' enterprises It is. my opinion that these vari¬
have grown by the plowing .back ous. Over-the-Counter
organiza¬
of
earnings,
Then the '.time tions should request from the SEC
comes, sometimes in thie first gen¬ a clarification of what, I believe,
eration of: ownership,; frequently is a confusing and on thq face of
in the second, when* public par¬
it, an alarmingly restrictive deci-;
ticipation ih the; business .is ..de^ Mon :of: this body.: We, "who be¬
sirable;
* Here, 4 the
over-the- lieve' the: pyer-the-cbunter .mar¬
counter market enables them to kets are an important and useful
raise additional capital, resulting
part of our financial system, have

employment, expansion
Over-the-Counter market of industry and continued sound,
economic development on which
an
unregulated: group of

remote investor.
>

efficiently the

serve

interests

and

needs

communications

part of a national system well

organized to
■

and
through

area;

time

same

profit¬

New York Stock Exchange

in greater

mechanismthat
the ..smallest com¬
home market for

ease;

reason

of the

function

on a

Here, I believe, is the
for organizations such as

important

most

the

his inability to

able basis?.

(Continued from page 520)
.

through

maintain his business

mind,

going to be forced out of

business

Over-the-Counter Markets
my

555

THE COMMERCIAL & FINANCIAL CHRONICLE

arise fr6m J

ford"

Let me read to. you

case. -"

excerpts from the Securities and
Exchange • Commission's f findings
pf the investing public and of its and opinion on this case. *.'I quote:

among the Association members;
and thus promote both the interest
.

members.
v

which,

firm

The NASD is: the national po¬
licing and regulation body. Act¬
ing upon authority granted to it

makes

pur¬

order?solicited; by
it knew it djd. not have

chase to fill an

it when

the securities on hand is making
Maloney Act, NASD has that purchase for its customers—
adopted certain rules of fair prac¬ in fact and within the meaning of
Such a transaction is,
tice both for the protection
of the Act.

Under the

investors

for

and

the

protection
practices

of members from unfair

which

would

tend

lower

the

standards of business conduct.

has

taken

the

over-the-counter

rules

adopted by the Commission
x to govern transactions ip the overthe-counter

market

them its

rules of fair

own

made

and

practice

applicable to all its members; In
addition,
the
Association
has
adopted certain other rules of fair

brokerage 1 transac-r.
and it is- a
brokerage transaction apart from
the fact that the particular ,cus-\
therefore,

tion under the statute

(as was true in this
especially reliant- on. the
by reason of particular trusty
confidence or" infirmity;.
Under
these circumstances the firm, must
fulfill the obligations of broker¬
tomer may be

case)

firm

age
in the ; transaction': among
other things, to refrain from act-,
.

practice on matters not covered ing adversely, to refrain from
by rules and • regulations of the taking secret; profits, to make the

Commission

and has made them

applicable in governing its
bers.

mem¬

The NASD has assumed the

responsibility

of supervising fair
accurate
newspaper quota¬

and

summing up, may I say, to

customer at the

obtainable and to con¬
firm
as
agent making specific
disclosure of the amount of its
remuneration.
In
transactions
best price
.

such

tions.
In

best deal for the

as we

have outlined the firm

placed itself in a brokerage posi¬
tion and it could not choose to act
otherwise.
Nor could it relieve
itself of the necessity under the
.

What Postwar Foreign
Trade Might Mean to Us
(Continued from

page

553)

progress is a recognized fact.

should, I believe, regard the pro¬

JERSEY AND ITS SUBSIDIARY

COMPANIES

1946 with anticipation of

look to the year

statuteof;acting as broker ; by
sending a confirmation as a pur¬

ported "principal,"

The decision

by the frim to
purchase of a se¬
curity which it did not own was
a voluntary decision which com¬
mitted the firm to the- role of
brokerage.
That role could not
be changed without explicit and
made

initially

tribution to international business

OF HEW

rUBLIC SERVICE CORPORATION

"Better

things to come".

recommend the

posed line of credit in the BritishAmerican agreement as an invest¬
ment in the business future of the
world. In the first place, it falls informed consent in 1 each case
Into the category of an economic prior to the completion of the
rather than a war loan. Secondly;5 transaction or explicitand. ' in¬
without the line of credit, and the formed ratification afterwards and
non-action of *the customer upon

It will be
but

year

of problems, of course,

they will be problems

of reconver-

•

implementation of. the liberalized

commercial policies that are. part
of the overall agreement, the eco*
nomic outlook of both the United

States and Great Britain, as well

most of the other trading
riations of the worlds will suffer
a rather severe setback. As a con¬
dition of the loan, - the Govern^5
ment of the United Kingdom has

sfs of

agreed

support

;

•

the

United

States in an effort to reach wide

international

agreement on

such

problems as tariffs,' preferences,
quantitative
trade' restrictions,
currencies,: subsidies, state irading, exchange controls and re¬

business

strictive;

'practices

general. There is a highly signif-

concerning

the

£cant

provision

Trade

Organization of the United

establishment of an International

;

help

the | larger national

line of credit would
for us and for other
the ? kind
of
world in

the

sense,

open up

nations
which

could live with greater

and with more oppor¬
tunity for growth in the exchange

security

goods and services on a basis
of mutual business advantage.
It
seems to me that the attainment

of
•'

such world

Joked

upon

conditions.,can
.a

most

pnd-Worthwhile objective.:

tangible

sion—putting together the

machinery for

peacetime production
'

■

and setting it in'
:
•

•

■

motion.

Problems, yes,

but the kind of problems

•

case, validly act, as* a principal
would be to ignore the meaning of
the Act,
and permit the firm,
without

particular,

play

words, to shift its position; in
the course of the transaction to
suit the 'convenience of'the mo¬
on

That:

that result in better

things for our coun¬

explicit, and

informed consent, by a mere

ment.

Nations,

.[[Thus,

pf a principal confir¬
mation did not; in our - opinion,
constitute such ratification. How¬
ever,
these views do not,
of
course, apply to a course of dealr
ing with a customer" (as, for ex¬
ample, a bank or insurance com¬
pany) who does not desire to deal
with a firm as a broker and who
understands the price status occu¬
pied by the firm; To bold .'that g
securities
firm
can,
under the
circumstances
outlined in
this

the receipt

r espondent

try, and better

business for industry.

at¬

tempted to do in violation of the
anti-fraud provisions of the Ex¬
change Act."
just what have we here?v pah.
mean that the 'oft-discussed
Disclosure Rule has Arrived in an
unobtrusive but effective way?
Is
,

this

PUBLIC SERVICE
.

CORPORATION OF NEW JERSEY

AND

SUBSIDIARY COMPANIES

this going to

result in tremendous
hardships for the small dealer
throughout the country, who will
be unable toi compete with
the
large
sizable

organizations ; who
carry
positions? In other words,

speaking

very

frankly, is the small

A-49-4(.

556

THE COMMERCIAL & FINANCIAL

CHRONICLE

Thursday, January 31, 1946

Businessand Finance Speaks After the Turnof the Year
(Continued from page 554)

fable

relationship of

costs and prices,
all bound up togetheer.

wages,

subsequent enactment of Federal Public Law 15 of 1945.
We need sound laws enabling duly authorized public

way in which

officials

country,' certainly not in the

and

the

courts

supervise, control

even

management which may attempt to operate
contrary to the public interest in the matter of financial
or

procedure,

However, if the in¬

•wide. variety of restrictive rate regulatory and other
laws," it will not be possible for it to keep pace with the
industrial development of. the country, nor will it be
possible for it. to. follow and support operations in - the
international field,, where;our country and all of its
£
business components are now called upon to play a
leading part.
*
'
■■
' '
The making of rates, the development of improved
and broader forms of coverage and the promulgation' of
new forms, of coverage must of
necessity be retained as
functions of management if the insurance business is to
continue to operate in the public interest.
Insurance company management should develop ways '
and means of conforming to all of the Federal anti-trust
and related laws without the necessity for a mass of
legislation and incidental regulations which may operate
to handicap and even destroy the American institution-

A 30% wage
basic industries

of insurance.

result of rate regulatory or other statutes and regula¬

stemming!, therefrom, the essential functions of
management are transferred to public officials or governmental bureaus or commissions/
r
Competition, "sound business-like competition, is the
backbone of American business and commerce, of which
,

the insurance business is

C. DONALD DALLAS

copper

increases

We in America today are pioneers of the last frontier—
the sky. v L believe that this wonderful; new! Air
Age
which is already here will
bring with it a better under-r

and the
in

this
'

industry,. without

increase in

any one or two of our

workers, farmers, and people

on;

time,
our
experience, and our prestige to undertakings de¬
signed tobe of did to orderly international commerce.
Benefits resulting from the sensible utilization
of.air
transportation will do much to bind up the wounds of
war and permit the citizens of the
world to live peace¬
fully together.
Where the opportunity is great the

large,

fixed incomes cannot

standing of all men, and the realization that; air trans¬
portation is now international and that we cannot engage
in international commerce unless we
contribute our

responsibility of accomplishment is equally great. ; Thiis,
it is our responsibility to see that air
transportation is
made available and utilized for the common
good. -

Industry is
reduce cost by mass production and
technological
development, giving; part of the savings in wages and
salaries and. part in reduced prices to the
consuming
public, thereby raising the "standard of living, broaden¬
ing the market, and making possible a further reduction
in host.
In effect, the unions are
asking today that

HENRY M. DAWES

President, The Pure Oil Company

Artificial price schedules imposed
by the Government as a war measure have destroyed, for the time be¬
ing, the operation of natural laws and those incentives

which

essential to the successful

industry,1 Their most
damaging effect was upon the pro¬
ducing phase ; of The oil industry.
However, it is reasonable to assume
that prfice control will not continue
•

indefinitely.
' £ 7
\
"
The coming year will be
readjustments.

Some

finery capacity
the

purpose

was

!,
of

one

excessive

re¬

constructed for

meeting the war
this will naturally

emergency, and
have the effect for

time of

encour¬

aging an over-production but event¬
ually the relationship between the

increase which certainly is not "in the cards" for the

demand

for

oil products? and the
crude oil must control.
There is a danger of excessive com¬
petition evidenced by the construc¬
tion of marketing facilities beyond
Henry M. Dawor
the needs of either the public or the
industry. The public; can be; fully
served from existing outlets and to increase them would
be a complete economic waste. These two factors of ex¬

copper industry, nor for companies in other industries
with which I am familiar.
In

are

conduct

reduction in future costs be passed on now to
labor, not
after costs have been reduced but in a forecast of this
reduction as estimated by labor. This would
give all the

disastrous to the progress of American
Industry,
;
~/it
Labor seems to overlook the
fact, in basing its claims
for a 30% wage increase on the 33%
reported rise in
the cost of living since
1941, that it has already received
from 30% to 38% increase
|
during this same period. What
labor is now asking is an additional
30%, or a net 73%
or
over, since prices were "frozen" by the OPA, an

important component. In the final analysis, the purpose of Federal anti-trust and
related
laws - is to eliminate combinations, boycotts,
monopolies and coercive activities which would operate
to destroy competition.
Therefore^ in conformity with ;
the requirements of Federal Public Law 15 of 1945,
which arises out of SEUA decision, it should be uecessary only to strip the insurance business of all anti¬
competitive and discriminatory practices.
an

wage

advantage of reduction in cost" to labor and none to the
Consumer and would
prevent the further broadening of
the market and further reduction of cost.
It would be

pri¬

vate management is now a major issue—an issue of para¬
mount importance to millions of policyholders, thousands

additional

afford to pay the higher
prices, so sales fall off, produc¬
tion drops, and mass
unemployment, such as we had from
the same cycle after the last
war, is the inevitable result.
The fundamental principle of -American

•

tions

are

will, in all probability, result in a general
increase of 30% In
commodity prices. Therefore, what
does labor gairi? 7 Relatively
nothing.
White collar

of stockholders and the general public. .Private manage¬
ment in the insurance business will cease to exist, if, as

have

surance business of this country is to be shackled with a

The continuance of the insurance business under

they

corresponding increases in costs of production, and both
of these factors add
up to higher prices on commodities
which workers as well as everyone else must
pay if they
want the goods.
;

eliminate

structure, rates, forms

cannot

supply

closing, I would like to quote Bernard Baruch, who,

the eve of his 75th birthday, had this to
say about the
American scheme of free enterprise:
"Our political and economic
system saved the world
on

in two wars.: It will save the
peace, if given a chance."
But it can't do it if it is Crushed between
rising prices,
wages and strikes on one hand, and "frozen" prices on
the other.
All that management is asking in this
present
labor crisis is a chance to continue
commerce and indus¬

cessive

phasis

■

refining facilities and unwise competitive
are

em-

the most depressing that will manifest them¬

selves in the next few months.

try in the way which has. made the United States the
President, Revere Copper and Brass Incorporated
The longer view, however, is much more
most properous and most powerful nation in the
encouraging..
World.
The general disturbed conditions which involve strikes
A nationwide tie-up of industry is imminent unless
and the reconversion,of
the wave of strikes now sweeping the country is Checked,
RALPH S. DAMON
industry from a wartime to a
and Government asserts its leadership.
peacetime basis is not likely to be long continued and
Collective barPresident, American Airlines, Inc.
the prospects for an adequate demand is
J;.
; v
gaining fhust be restored, and condistinctly en*.
The year 1946 will provide Ihe air
transportation
tracts lived up to.
*
J!
y
M, ^ \ 4 \ j industry with. the opportunity to j)ut to peacetime use ycpuragingyyyyy^
The war years have seen a
y The voice of copper and brass, •
very great increase in the.
the know-how and experience which it
gained during
number and variety of uses for
while not so deep and penetrating
petroleum product^.
the war years.
1
;
as
There seems to be almost no limit to the possibilities*
steel, is sufficiently basic to • be •
The commercial airlines in this
of new uses and developments which modern
heard in
the /present
controversy.
chemistry
country
have
demonstrated
their, has made and there is no raw
Every automobile that is manufac¬
material which can be,
faith; in the future by
tured contains
j having on; r manipulated and transformed: into various commodities 5
approximately forty
order 400 planes with • a
capacity i as effectively and
pounds of copper and brass. 6,000,000cheaply as prude oil. A synthetic rub-;
Of 20,000 seats as
compared with; : ber
cars is the estimated
process has been developed and is now in operation
quota for 1946.--*
6,250 seats in 1941, the total number
The electrical industry absorb^ 30
which could, in emergency^ provide for all the demands
% '
of seats available for all airlines.
of the
total
that this country inight make for rubber. Plastics
annual production
of
frojh '
Delivery this year of these superior
copper which is in excess of 1,600,000
refinery gases are'being utilized in .everything from:
airplanes will permit a 'tremendous
"tons.
buttons to automobile bodies and there is an almost
-The. balance goes into 'com- '
increase .in service to
every city and
infinite number of new products and new uses to which
munications, transportation, aviation, i
country served by air.
shipping, plumbing, heating, roofing,
petroleum will be adapted. It is almost as though a new
In
1945, more than six million
chemical industry has been
refrigeration," air-conditioning, and
super-imposed upon that of:
people traveled by air, and more
the like. You are, of
petroleum. L *
'
t
course, familiar
than three billion
passenger miles
with the tremendous
To say just how many months Will be
contribution of
required for
were flown. These
figures seem stag¬
copper and brass towards
readjustments to peacetime: conditions would require a:
winning
gering until you realize that delivery
the! w£r, where" we
C. Donald Dallas
suspend proclairvoyant but it does not take a great economist to"
/ of additional equipment to the com¬
duction in the above civilian
classi¬
appreciate the stability of the industry,'
'? • v" > y
mercial airlines will see these figures
fications, and devoted our resources 100% to
the war
doubled and possibly even tripled
effort.
"
^
?
GEORGE A. DAVIS
in 1946.
A prolonged shut-down
Ralph'S. Damon
of the automotive and elec¬
President, Oklahoma Gas and Electric Company
trical
!
industries together with their
As an example of the expansion
affiliated trades,
program which the industry is
wilh have serious
prepared to embark upon,
Our business is essentially a service
repercussions on the
industry and,as;
let me cite my owncopper/industry.
With this appreciable
company, American Airlines.
We
volume of sales cut
-long as the general industrial picture is obscured by
have already
off, copper and "
.on' order
175
brass mills would be forced
labor difficulties, our own pattern is uncertain.
airplanes at a cost of
to shut
Other-.
down, mines would •; $64,750,000. Many of
be closed, and thousands
these planes will be delivered and
of workers would
wise, the outlook here is very good.
v
be thrown out
yy
put into operation this
of iheir jobs.
Has. labor faced this
year, permitting an; increase in
Only a relatively small percentage
reality?
service of more than 100% in 1946.
Time and production lost
( '.
< y
of our sales was to war
now, with attendant unem¬
business;
Service to
ployment will dissipate the
Europe will also be greatly .expanded this
therefore, there should be ho serious
people's savings. These sav¬
year, ; Qnly four months after V-J
ings wiU he used for
Day, American. Over¬
problem of reconversion in our terfood', clothing and shelter rather
seas
than for the purchase of
Airlines, 'the transatlantic operating 'division" of; ritory. i The decline in revenues. In
merchandise, because 'this mer-»
American Airlines, and Pan American are
chandise will not be on the
offering daily $ our own Company has been smaller
market.
Labor, manage¬
service to London. Within a
ment, and the general buying public are
than anticipated and dollar volume
period of weeks, this service
all losers in
•

•

■

the
present stalemate about wage
increase, to say nothing of
the cumulative adverse effect
on
national recovery and
national economy.

Economically

and

theory is all wrong.

practically,

the

"ability-to-pay"

It violates the union
principle of
equal pay for equal work, and would force
many small
businesses to the wall. V
Many companies in this country,

including the

copper fabricating industry, are at
present
operating at a loss., Labor would be doing itself a
grave
injustice if it based its present wage claims on the earn¬

ing

^sheets of such companies. * Management "takes the
rap" under these conditions by paying war
wage rates
already established, while prices are still "frozen."
■

yy-

It is unreasonabe of labor to
single out companies that/
making a profit, base its claims for wage increases
on their
suspected ability to
are

pay out of future earnings,-and then saddle these
wage rates on other companies
whose ability to pay even current
wage rates is a serious
burden.
.,-y ?y - •

The
of

difficulty,

as we see

the workers ignore the

it, is that the representatives
source

of wages,

the insepa-

will be extended to
include the Scandinavian countries
with connecting service to other
major European capitals
this year.
A third U. S.
airline, Trans World Airways,
will shortly
inaugurate transatlantic service to Europe
and the Far East.
Of

vital

has

ing period a
opinion,

our

importance to this tremendous increase in

including iand

and

;;

the full
war

has

However, in
effect
not

yet

area.

the

been
51

The smooth transition from war to
peace economy in our market will

the flow of civilian goods can be re¬
sumed.
Many small businesses here-

The plan requires that

bl% of the total cost be
spent to extend the benefits of r
scheduled air
transport with approximately .143
airports
to be built and 623 to be
improved. Work on our national
airports will begin in 1946 and continue
for a period

years.--;;
v
rf. -7
•*.
On the basis of our
past experience plus an unshake-

the

year ago.

continue only if labor difficulties m
industrial centers can be settled and

$1,000,000,000 (not

buildings).

felt in this

airline service here and
abroad is the airport development program which
will of
necessity have to be under¬
taken- In 1944 the Civil
Aeronautics Administration sub¬
mitted the "National
Airport Plan" for the improvement
of existing
airports and the addition of new airports in
this
country at an estimated cost of

shown an increase each month
since V-J Day over; the correspond¬

many

firms

are

sales to
soon

Geo. A. Davis

expanding their fa¬

cilities for increased

business.

anticipate increased

residential, rural, and commercial customers as I
appliances and other goods are available.
Our
growth has continued without interruption;

customer
.

able

belief in the ingenuity and
progressiveness of the
American people, I am convinced that the
year 1946 finds
us,on the threshold of a thrilling new era in our
history.',

closed by the war are reopening and

since 1932 and

anticipate

continuation of this trend.'

This will be greatly accelerated
'

ing gets back to normal.
VVX;
*
>7 ^(Continued

soon

1
on

y
page 558)

home build-;
.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

Volume 163

Promoted by Mass.
Mutual Life Co.

Bogert Willi
Easbnan, Dillon Co.

Appointments

Eastman

Securities. & Research

National

Dillon

Street,

Of J. K. Rice Go.

Co.,- 15
New .York „• City,

Fund) has announced the
promotion of Walter J. J. Smith

Massachusetts Mutual Life Insur¬

Company has announced the

sociated with the firm. Mr. Bogert
served in the Air Corps
beginning

way,

Exchange,

that John

rence

announce that

Lawf

Bogert, Jr„ has become

as¬

Representative of in 1942 and'advancing from sec¬
vertising maitager.; He will direct
the New York-Metropolitan Ter¬ ond lieutenant to major; Prior to
all. advertising and publicity for
ritory,'' In the" security business his military: service he was with
the'company. -V;;•
the
bond
department
of
the
Since 1929, • Mr. Smith for. the past
He
entered
service with the
Bankers Trust Company for
eight
Massachusetts
Mutual
irt
July, year has been assistant to Douglas years.
Wholesale

returned

New York City,; announces

admitted

/ Scrimgeour;

ment

has :been

partner to the firm.

Wall

the

trading

depart¬

Kidder,j Peabody & Co.,
Street,

New

York City,

members of the New York Stock

Mr; Scrimgeour has been associ¬

Exchange,

ated with the firm for many year's;

nalt yeais

after

three-and-one-

of military service.

•

1934,

and

■

Detroit

was immediately sent
where
he
assisted

Laird, National Securities & Re¬
..

George E. Lackey, general agent,
in promoting the field sponsored
fiftieth anniversary testimonial to
the late William H. Sargeant, then

the.

investment

president

Massachusetts Baltimore

Mutual. In December of last year,
Mr. Gamble .was again, loaned to

was

force, to. < assist Mr.
Lackey in promoting a testimonial
to Vice

the

Following

Macksoud
of

•

rect

mail

advertising.

tion

for

Administrative

and

circulation

since that time has been given iri-

manager

and

for

years

•

■:>lr+l

••

—

Thomas D.

and prior to that

past 3V2

was

with

Doyle, O'Connor & Co. here.

Re¬

Mom$sey in New Quarters

also
sales -* promotion

PHILADELPHIA,

Morrissey

"Magazine 'of

the

V-

been in the army for the

was

made agency assistant in 1937, and

;riil

charge of the firm's trad¬
ing ' department, J. j. O'Connor
announced today. Mr. Walsh has

promo¬

Corporation. He

was

>•'">

dent in

Promotion

advertising and sales

♦

CHICAGO, iLL.

formerly in charge

was

»•

J. J. O'Connor & Co., 135 South
La Salle Street, as a vice presi¬

Manager was also announced, Mr.

Sargeant >' cam-

\ paign twelve years ago, Seneca
„.Gamble became; supervisor of di•

Sales

•

Walsh has become associated with

editorial

the

.%:4-^v/

appointment of George E.

The

Macksoud

com¬

anniversary on Jan. 1. '

pany
•

member

;• v-

J. J. O'Connor & Co,

S'c7

consulting

staff of the "Financial World."

President Joseph C, Behan

celebrated his fiftieth

who

field,- he was as¬

organization* and prior to that he

field

the

entering the mutual

investment fund

Thomas Walsh V. P. of

sociated with "Market Trends"' tibL<e

Sales. Before

charge of

search Vice-President in

and

bank

Co.,

PA. —F. J.
specialists in
stocks, an¬

insurance

creased duties in the advertising

Wail Street," and editor of a na¬

and

tional statistical service with over

nounced the removal of • their of¬
fices to - larger quarters in the

32,000 paid subscribers. ;::

Finance Building.

publicity

activities

the

company.

IT'S YOUR MOVE
i'j.

>' ;■?

J.V

&>f
,

',»

;

y.'

\ *

<i'\'

:•

•

:.'>
A

/*"

}}

'fivtf?

Mr. MANUFACTURER-

TUfANY INDUSTRIAL EXECUTIVES

now

getting the

^facts on what Long Island has to offer them
manent|oca'ion for their business.
*
'

Every day

;
is
.

are

and

being discovered that in

real

answer

to the

Long Island is the

problem of where to locate.

own

community affairs, and
way

inquiries are received, and it

many cases

First of all, the folks here
A majority of them

as a per-

their
are

are

good substantial citizens.
homes,

own

are

Typical scene in Southwest gas and oilfields—well
rigs with pipeline expansion loop in foreground, -

interested in

traditionally American in their

of life.

The

Many

are

highly-skilled in their training—proved by The

excellent record of Long Island in the production of aircraft
and

other

precision products that contributed '

toward final Victory.
To do

our

•

development department will be glad to

•

our

GAS-BORN flame'

much

Behind it -He the

resources

industries.

in¬

These

•

are

the

resources

essen-

that

^''■■■■ ;K'ITik \'"■/:

come

Long Isiand Lighting Company
,1

1600

munities in

COLUMBIA GAS
■

com¬

area

supporting more - than
people;

5,000,000;

sound'fiscal

able the Columbia

Manager

; : ;

en¬

System to pledge pub¬
lic service for years to

phenomenal in-'
•

They are operational efficiency
policy . . . manage¬
ment's integrity.
tial

2S0 Cld Country Road, Mineola, N. Y.

\\uty-'i:ry>-v-,'K. ">v>

progressive manufacturers.

g" '

They are: the7 vast, earth-held reserves of natural
gas ;.. the thousands of miles of pipe-lines that
carry it to hundreds, of thousands of homes and

what Long Island offers.

Address: Business Development

business

answer your

9f the kitchen; range is

every.-day phenomenon.'

dustry...

part in this period of readjustment,

quiries and supply information

Capt, Alfred T. Higle, AUS, has

Rice, Jr, & Co.,. 120 Broad¬

members of the New York Stock

Trust

promotion of Seneca M. Gamble
to the newly created post of ad¬

J. K,

Kidder, Peabody & Co.

Rroad

Capt. Higle Returns

Scrimgeour Partner

Corporation, 120 Broadway, New
York City, (sponsors and under¬
writers of the various National
Securities Series and First Mutual

SPRINGFIELD, MASS. — T h e
ance

H.L

Nat'l Sees. Research

Seneca Gamble Is

& ELECTRIC

CORPORATION

THE COMMERCIAL & FINANCIAL CHRONICLE

558

Thursday, January 31,1946

Business yandlFinance SpeaksfAlter gthe§|Purit of the Year
J

(Contiued from page 556)

Oklahoma is

fidence- to railroad purchases being such, that will per¬

mit this rate of.■

vigorous state with many op¬
portunities for business growth.
The economy here is
almost equally divided between agriculture, mineral pro¬
duction, and manufacturing with good diversity in each
group.
Therefore, we are optimistic about the future
of our territory,,
;
a

young,

President, Baker & Co., Inc.

T. Credit Corp.

production of consumer durable goods can be
attained before the end of 1946 if industrial peace is re? ?

artificial Obstructions to full produc¬

left by the? war.:?
"Once capacity production ?:s at¬
tained, concern; about the inflation
danger will wane rapidly.
The one
sure way to combat .inflation
is to
provide more and still more goods
to consumers, so that they will be
able to spend;; without bidding upf;

President, The Bank for Savings in the City of New York

Savings banks in New York State close the year
the .greatest yearly increase in deposits in
existence, over $1,000,000,000, and with
deposits Jan. 1, 1946 at a new

with

126 years of
v

•

jewelry and other peacetime uses," Mr. Englehard continued.
"This was followed by a heavy de¬

;

several

upon consumer credit to effect an
equitable distribution of the limited
supplies of durable goods that are
available.
Veterans and others who

Charles

Engelhard
!

years,

were

pursue their objective of pro¬
moting thrift with renewed vigor.
Many new branches are being estab¬
lished in the larger cities of the state
to more conveniently serve
existing
depositors and to encourage new
ones. Savings banks
services, such as
assisting veterans in purchasing new
homes,. Christmas clubs, bond aa.counts for the purchase of savings
bonds, and other club accounts, sav¬
ings banks money orders for conve¬
nient payment of bills, and savings

des; rous of re¬

storing their stocks with all possible
expedition and in time for the first
peacetime holiday seasoh in Decern->
ber, 1945.

"Supplies of platinum in the hands of the trade were
hot ade4uate to meet this pent?up demand.
United

enjoy large incomes during
do not have as much cash
spend as those whose earnings §

did not

States

war

total

peak

over

will

mand for platinum by domestic and
foreign manufacturers of
civilian;
goods—particularly jewelry manu¬
facturers — who, having
been re¬
stricted in their use of platinum lor

1945

their

$8,000,000,000. This reflects
continuing confidence in the mutual
savings banks and a high degree of
prosperity for their depositors.
During the Coming year the banks

metals for

prices. More goods will then offset
more purchasing power.
,: ^,
"While shortages of durable goods
exist, we will have to rely largely :

the

DeCOURSEY FALES

nation's largest

governments, removed all remaining
restrictions on the use of platinum

acute shortage

the

removed. There is an urgent
need for these goods, to relieve the

search m^d development are aimed at the continued: im¬
provement of platinum alloys dnd the expansion ;df the
platinum metals in world markets*" * '* '', < •.

refiner o^
precious rr.etals, stated in a year-end
review.
*
.
?
? "Shortly, after the war ended, the
United States Government, and Other
Inc.,

tion are

A. O. Dietz

more people than ever before know about the uses
advantages of platinum metals and moreover have
had actual experience with them, the future holds
great
promise for these metals and their alloys.
Current re¬

Although the1 cessation of hostilities in mid-August
was rapidly followed by a sharp abatement of demand
for critical materials for military purposes, platinum is
not yet in aaequate supply, Charles
Engelhard, President of Baker
Co.,

"Record

stored quickly and

"As

and

CHARLES ENGELHARD

ARTHUR O. DIETZ
President, Universal C. I.

uring instruments apd automatic controllers or record¬
ers.
They, have replaced base materials in many cases. ?

operations throughout the year* /

stpcks of platinum; in the hands of refiners;? deal¬

bank life insurance will be offered
importers when the war ended iverebelow nor??
more attractively than ever before.
DeCoursey Fales
increased sharply, in the* war years,*: mal* They were approximately. 20% lower pn Sept.' I,
Savings bank life insurance, sold
than at the beginning of the year. Deliveries of platinum
If all buyers were, required to pay cash for the automo¬
'bverHh'e couhtey to. all persons residing or working? in
for war purposes during the first eight months of 1945
biles and other costly .durable goods they need, it is ob-;
New York State, has also- made new records in 1945.
were well in excess of the recoveries and import of
vious that serious injustices would result.

^ " /

;;

! to

ers. and

/ ^

fined meltal which averaged about 25,000 troy ounces per
."Fortunately, we have our-instalment credit- ma¬
month during that period.
' ^
*<
*
chinery to place the millions who could not accumulate
;
^
"Throughout the war period',. domestic. .pfoductidn of
large amounts of cash during the war on a bas's of
primary platinum, including Alaskan, was relatively «
equality with those who" did, provided the former haVe
small as compared fo United States requirements. Most'
the current income to maintain instalment payments.;?
?of our requirements came from Canadav
The American sales financing system should play a vital
whichmlso^sup^^ 4
plied ,thp : major i portion of palladium; rhodiumt an<L
role during 1946 in promoting a more equitable distribu¬
ruthenium#:* Colombia and Russia supplied important.,
tion of the Consumer durable goods produced.
This role
,

:
.

Over $15,000,000 was bought during 1945, bringing the
total in force to $61,000,000; It is available In group policies^ ^and

irr; IndivMmF*potrc!eSiW^

endowment, children's policies, etc., at low cost.
sands find it to be

Thou¬

excellent medium for systematic

savings and enjoy thp added protection of insurance."
The

problem of investing new deposits, confined in
largely to the purchase of U. S. Government bonds,
Savings banks are par¬
quantities of platinum;?
will be all the more important since the nation has oeticularly interested in aiding, to alleviate the tremendous
;
"The? merit and value of 'the; platinum metalssfor? in-;
cided against rigid rationing of these goods because of
housing shortage by financing all. types- of permanent
dustrial
purpose^ is demonstrated by the following fig¬
the many; administrative difficulties and the black mar- residential structures, but the shortage? of material is
ures compiled, by 4he United States Bureau of Mines, *
Lets to? which rationing gives rise.''1
; '
; *
c ; ^
such that probably only a start can be made in remedyshowing the use iof the platinum metals during the first
ting the situation in 1946. Huge sums await the slow
six months of th|s year:
THOMAS DREVER
advance of building construction and the, competition for
.vi'ir
whatever loans are available? may keep mortgage? inPresident, American Steel Foundries
; i ^ S# Electrical and chemic^ Pigtinuip:^^PMladlumg"5'
'i
industries
*
7,500
165,00Q^
40,000
tterest rates>at or below* the already reduced levels; of
American Steel Foundries look forward with opti- *
Dental d?n d medical
1945., Savings batiks fare- also' becoming
interested ? in
/mism to 1946 prospects for the Railway Equipment in¬
22.000
?
?
purposes
15,000
housing Mevelopments^building^ioperating ?andtiOwning
dustry despite certain disturbing influences attributable
37,000
Jewelry r
largely to readjustment of industry from the war period
Securities available for savings bank investment are at
to normal
Total
7,500
operations.^
*
,
' about all-time highs. Government* bonds are likely to
180,000
99,000
Recent purchases of modern passenger equipment have
continue at present levels in view of the Treasury's
"Other platinum group metals.
exceeded those of any period over the past 20 years,
determination to keep its interest cost.at a minimum.
"Palladium made great gains during the war as a
and car builders have scheduled building well through
Corporate? securities will probably be,, sold in greater
precious metal for fine jewelry. The white color of pal¬
the year 1946.
volume over the coming year, but the pressure of funds
It is only natural that this type of equip- ?
ladium is used to advantage in settings for diamonds and
ment should receive immediate consideration since, prior
seeking investment and the outlook for good business
other gems, and in two-color combinations with gold.
to the war period approximately 50 % of all passenger
over the next
t\yq or three years at least will --,* ■ the
keep? -. The lightness of palladium is utilized to eliminate ex.x.Ua1;
cars were over 25 years of age, and the building of such
cess weight from large brooches and other pieces,
These
The
equipment was completely discontinued during the war
ndvnnta.crp*; tn^ethpi- with it <4 «trenfffh and rhirahilitv
P
accumulated OVei the past toui
advantages together with its strength and durability as¬
years for durable consumers goods, automobiles, refrig¬
"•years. ^-?;v..f■KS58
sure; for palladiurp a place in ^ine jewelry along with
erators, washing machines and other household equip¬
As of Jan. 1 there were approximately 35,000 freight
platinum? and gold. The public is being better informed
ment, combined with shortages which have developed
cars on order.
We do pot:believe it unduly optimistic
on the preciousness of palladium, through extensive ad¬
in other commodities,
notably men's clothing, should
to expect the construction of at least double that number
vertising; and publicity, and is thus realizing that pal¬
result in an extremely high level of industrial
produc¬
during the full "year 1946* To maintain the present
ladium is indeed: the only, truly natural 'white gold' in
tion and general business
activity
railway and private car line inventory of approximately < existence.
1
»
"
^
Farm income should continue at a
high level because
2.000,000 freight caits based on a normal life expectancy
"Platinum; metals contributed greatly to the winning
of the demand for foodstuffs abroad
and because of the
of 25 to 30 years, woukLrequire the annual purchase of
Of the war through their: widespread use in military
continued;demand at home, generated by the continuaapproximately ,70,000 freight cars. Well over 30% of all
equipment and m tne pioauction of war goods.
ana in the production ot wai
L.aige
Large
tion of and even an increase in
war-time purchasing
freight car equipment is over 23 years of age. In han-;
quantities ot platinum were used for electrodes in airpower,
power.
4
*
•
" • ^ .£■
dling the enormous peak: traffic :during the war years^'
plane spark plugs, for contacts- in magnetos and; in
Savings banks have always reflected prosperous times
the rails not only continued to operate many thousands
numerous instruments, ihcluding airplane flight controls,
in increased deposits, and 1946 should
prove no excepof cars that had been scheduled for dismantling, but the
bombing equipment, and computing apparatus.
;tiOh;:V^:■ f
Elec¬
■
tronic devices, including radar, utilized the superior per¬
intensity of service naturally resulted in reducing ma¬
C.E.FAULK
formance of platindm Oetals in?yafious parts^ one of the
Chairman of Board, Delta Air
terially the anticipated life of all freight car equip¬
Lines, Inc.
most .notable being the use of platinum and platinumment.
The average number of cars built during the war
Some aviation experts predict that traffic on com¬
clad grids in high frequency transmission tubes.; Plati¬
mercial airlines will be ten times as
years fell far short of replacement requirements.
With
num alloys played a vital role in production of military
high in 1950 as in
1945

will become more acute in 1946,

„

•:

•

■

——

omnnmont

OMrl

T„

,.,,v.,

•

the anticipation of a continued increase in industrial out¬

explosives, bejng used as catalysts in manufacturing
nitric acid, which is one'of the principal raw materials4
in the production of such explosives.
From platinum
alloy spinnerets and bushings eame the rayon "and fiber
'glass used for so many varied war purposes. Insoluble
platinum anodes produced the perchlorates-,. peroxides

put, it is reasonable to expect that the railroads will
continue

purchase large numbers of

new

im¬

and

proved freight cars.
For similar reasons there should also be

correspond¬

ingly large purchases of locomotive equipment.
Jan. 1, 1946 there were on

order.

car

Foundries

Steel

are

large

suppliers

otfier: truck

chemicals obtained by anodic oxidation, and
employed in production of war equipment that in¬
electrodeposition of nickel, rhodium: or - other
metals. The innumerable instruments used in communi¬
cations, in navigation, in automatic controllers, and in
were

volved
.

trucks, passenger car, locomotive, and tender

clasp brakes, couplers, springs, and

and other

As of

locomotives

American

freight

approximately 500

com-

ponents for all railroad equipment. During, tHe past few

•-

measuring and recording devices-of many kinds utilized
the exceptional corrosion aiid heat resistance of
p.latinum

metals

properties. *

well

their electrical and

mechanical

this company has spent approximately $1,000,000
"Now that the war is over, the uses of platinum metals
research work for improvement of its products^ in- ; ? in civilian goods are expected to be more diversified
than in the pre-war period*
These

years

eluding the development of
permit safe and
up

to 100 miles

easy
per

freight

car

truck that will

riding at all operating speeds

even

hour.

The company has sufficient-tonnage

metals, which have

long

been

valued, primarily for adornment purposes,
• have demonstrated their
merit and economy as working
materials for industrial uses.
The*

its books to

permit it to continue at close to capacity Operations for
the next several months,, and looks forward with con¬

important, improve¬
ments * contributed by* the
platinudi metals are better
quality in chemical products at lower costs;, appliances
and equipment that give better service with less main¬
tenance;, and greater? precision and reliability, in meas-

1941.
In my opinion traffic will increase about
seyen
times- during that period. / 1
.

Considering all things,; I believe
passenger traffic over our
cial airlines in 1946 will

commer¬

approxi¬
mately double the 1945 figure, which
itself was up about 69% over 1944.
Others in the aviation
scale
but

their

the

of new;
service

estimates

limitations

planes that
this

;

for

trained

old
to

the

placed in

the

necessary

year, :

new

employees

workers who

handle

number

can be

training program for
and

industry will
higher,

much

new

must

and

larger

equipment, will curtail the speed of
our
industry's' growth during' the
next 12 months.

The Army and

Navy have exerted

great influences on America's think¬
ing along aviation lines* That influ¬
ence is already felt and reflected in:-

Faulk

the flood of

applications for positions
with airlines.
Delta Air Lines recently received
''?'
(Continued on page 560L? ^;

175

Volume 163

Number 4460

THE COMMERCIAL & FINANCIAL
minimum levels

Baltista V.-P. of
Union Bk. of Commerce

Which Would be

fixed." ^
"If ceiling prices are
at

his.statement

steadily since last August and is
above parity.
Without such
a
notice, it would have been legal¬
OPA's notice applied,
only to the ly impossible to establish any ceil¬
1946 crop.,
■'
ing prices later in the year,

established

the prices proposed

^CLEVELAND, OHIO —
in,the notice," Mr. Bowles said.
Thompson,, President, Union Bank "In other
words, the prices in the
of Commerce, has announced that
notice
are. the
lowest
ceiling
A. J. Battista, whn ;has been an
prices that can be established, not
official of the Foreign Department
the highest"..
of J. P.

VI would have
-

Mr.- Bowles said the. purpose

been

covering

ton,": he declared,

cot¬

raw

situation is developing in the fu¬

now

regardless
cotton

of what

prices.

Mr.

ture

technical

would

the
call

price
in

group

of cotton

with

happened to

It is

and

cotton,

growers to consult

advise /me

Bowles .said

advancing should decide that

that

OPA

stabilized

comes

"no

ceiling will

inflationary be imbosed."

or-,

Union Bank of
Commerce

Assistant Vice

President,

ef-

f ective Jan.

15, Mr. Battis¬
ta

will

charge of the
For eign De¬

partment
the

Union

Bank of Com¬

merce,

serving

companies and
individuals i

A. J. Battista
n

the Cleveland area/in 'connection
with business in foreign countries;
'

Mr. Battista is a graduate of the
University of Pennsylvania and of

Rutgers

University Graduate
Banking. He has been
with J. P. Morgan & Co. Incor¬

School

porated

since

1929

various

banking capacities, specializing iii
Foreign Department work includ¬
ing service abroad.

7 *

Congress Resists OPA
Cotton Price Ceilings
1

If the Office of Price Adminis¬

tration carries through its proposal

to place price ceilings on raw

cot-

tort, it "will meet with organized
resistance

from

Cotton

angry

State Senators who have

threat¬

ened to seek its discontinuanceupon

it^expiratio^ datei June 30, in re¬

taliation.

Fulfilling the legal re¬

quirement that growers be noti-

tfie4 of -planned price schedules at
,

least 15 days in advance

of the

?normal planting season, the

OPA

on Van.

announced

14, according

Press

j4a

rfmerUcan
SttttoeM,

SeacU P

Washington,

United

advices", proposed ceiling^ of 24,09
cents a pound for 15/ 10-inch

mid¬

dling: American upland cotton in

Ceilings for all

area

grades
Press

United

the

and - staples,

other

war

reconstruction materials.

planning

In announcing it,

now
•.

•

according^ to

the Associated Press from Wash¬

ington, on Jan* 15,j Price

:v,

potential foreign demand in history for

To take

necessary.

v ;

r...

•

'•

;v;r

post¬

advantage of this opportunity, intelligent

•

•*

.v•

■:■Vi

-•

\
;

*•

WHAT WILL BE MOST NEEDED?

Chief

Chester Bowles said the rise
cotton

the greatest

pointed out, are based on

this grade.

(

Americanbusinessfaces

,yfc 4^t

*V.

fy* ,£r

•

A ;

vJ'.-

•>

Vv. A.'

WHAT ARE THE CREDIT RISKS INVOLVED?

prices threatens the whole

stabilization program in the cot¬
ton textile field.

(

Saying that continued increases

iWould-

mean

higher

prices

everything

its

Burnet

provide dependable

can

Maybank,

Through its branches and correspondents abroad, the Chase is in

answers.

tion

power to prevent this.
Senator

sources

for

clothing, Bowles added that OPA
intends

Only information gathered from authoritative

our

supply just such information. These facilities which

domestic

(D-S. C,), according to the United

are

posi¬

always at the disposal of

correspondent banks provide a valuable service for their

own customers.

J fcress, said he would try to amend
I the next OPA appropriation bill
I to prevent the agency ^fronr usifig
f. any* of the funds for enforcing
ceiling prices on cotton,,

The

been

statement

that

cotton

crop

You

are

invited jo send for

ilearned

from

will

THE

CHASE NATIONAL BANK

ciated Press accounts

Asso¬

7 /

•

last

week

meet

legal requirements "represent the

CITY OF NEW YORK

HEAD OFFICE: Pine Street
*i

'i?

t'H'
'

that date,

He added that proposed ceilings

announced

OF THE

on Jan. 22, vit is

Washington

which reported:

Folder "Import and Exchange Regulations of the principal countrfasoftH WoHdY

7 brought under price control was
fmade by Price Administrator

I Chester Bowles

our

\
there lias

no final decision on whether

| the V 1946

■-

•

Havono

•

Sait Juan-.l
,

'■>

Fanoma

•

corner

of Nassau
~

'si

c/"

Member Federal Deposit Insurance Corporation

LONDONr—& Lombard Street
•

Colon

•

THE CHASE BANK.-

•*

51 Berkeley

Cristobal
Paris

•

Square

Balboa

Shanghai

•

every

aspect of this problem." He reiter¬

corporated of
New York,

joined the
ganization

representative

ated that if the price of cotton be¬

procedure."

"The. market

for raw,cotton has been

remiss

duties if I failed to: issue the

recent .notice

Mor-

gan & Co., In¬

559

to correct -"some

misapprehensions
among
cotton
growers."
He ; adde£ that the

later date, they can, of course,

be higher than

was

CHRONICLE

Bush House, Afdwych

Offices of Representatives: Mexico, D. F.

Hong Kong

•

Tientsin

•

Bombay

'Y YYY

,Y?> •'!■ y^p-bist:

■■;•■

VY';'-.-

THE COMMERCIAL & FINANCIAL CHRONICLE

Business and Finance
(Continued from page .558) V
applications in

j Ex-military pilots apply for any type

job we might have

The-American business mail is in a

war.

All of these factors will maintain

will

from rapid growth.

come

At present, we are

ing problems

Since 1941 Delta's net

any

sheets

Earring

unforeseen

one

available.

and

W. J. Field

problems.
Economic laws

•5

ers

ld'46,1
the';type?writer-^d^try';^n^nce-,:.afc:-.seyeire problem of •
year

increasing production to hew highs in order to meet an
unprecedented demand for both office and portable
The

commonly heard prior to the

prediction most

one

and

controls.

This

estimate

was

and closes them

to facts.

tracts

tu-

stagS

with

production which will shortly exceed that of any

prewar

period.

operating at

Not only is present business activity,
unusually high level, causing

demand.for typewriters^ but huge
were

accumulated

during the

universal

when the prin¬

cipal producers manufactured no machines. We estimate
be over a million office type¬

the backlog of demand to

writers and
the

over a

million portable typewriters.

period in

Inventories

certain

Clearly,

industry is likely to be operating at peak production

order

meet

this

levels for several years before the supply and demand

been

necessary to

relationship approaches a balance.

On the production

producing standard
rate within 90 days
to move
our

war

side, Royal's Hartford factory

of YV-J Day. The Company

goods production.

are

was. able

belt lines

used in

making good

now

complete.

1945 due to

Reconversion

minor way by labor

Royal
unrest.

was

interrupted

While

foresee

only"

lower

our

union

which

tional

developments

effect.

■

■/

favorable

represents
in

relationship
relations ;may

cient numbers of aircraft.

has

I?:»

na-; ;,?
an

fk:\iM

Respecting prices, present Government policies do not
appear to

permit the price increases which

are

justified

economy.

upon»the
measures.

c£

the

|
.

:
Alexander Fraser

readjustment; to.

so
.a

to min- '

peacetime

The outlook for 1946 is accordingly, dependent,

extent

and

effectiveness of such corrective

YY Y,-Y

Western

Air, Inc.

Since the

hostilities,

problem of

each

; v;

concentrating

getting its

postand within
fast, com¬
fortable, four-engine aircraft will be
placed in service by the major air
carriers. We anticipate that by-next
fall the airlines, for the first time,in
war fleet into operation,
a matter of weeks new,

will be adequately equipped
pent-up demand for air

to meet the

reduction in overalT demand and somewhat?

effects

airlines
the

years,

prices for gasoline in particular. It is expected that

the

has been

realistically the changed market situation
imize

the

■

serious $ The oil producing States Tthd the oil industry will ad^
?
the; just crude oil production and refining operations to meet-

have

aims.

termination

with

Royal's factory workers,,
labor

was

During the war years, the normal growth and de¬
velopment of commercial air transportation was re¬
stricted : by The inability of the airlines to obtain suffi¬

disturbances

enter 1946, American business management

prise reassert its superiority over any other economicsystem for delivering the goods in the greatest volume
at the cheapest price to the largest number of
peopl^
providing they are given favorable circumstances for
doing business.
We of American Locomotive look forward to a
busy
period in the fulfillment of these expanded production

operate refineries

the mid-Western markets.
Oil industry earnings hiay be expected to decline below those .of

JACKFRYE

capacity- which .wasi leased .during The-

years ahead is
locomotive orders from Brazil, Mexico, and

Fresident, Transcontiuental

cline to lower levels, and a trend in
this direction has already appeared

use

Physical reconversion at the factory is

years.

was

«°t

substantial

high percentage of
capacity with the result that a heavy
accumulation of gasoline is currently
occurring. In view of this it is quite
likely that gasoline prices will de¬

typewriters at 50% of the normal

and store the machines and

additional plant

relatively

never more confident of its ability to make free enter-

products,?

situation

•

other countries in the western hemisphere,

principally distillate and residual
fuel oils, were however somewhat?
below normal peace time levels in
the face of a substantial continuing
demand from the military services—•
the Navy in particular. This has re¬
sulted in some tightness of fuel oil.
supplies over the current winter. In

pnfilled requirements

war years

war

in trade and commerce in the peacetime

relatively strong financial position with increased pro¬
ductive capacity, improved technology and the. ability to
make generally superior products.

vantage of the tremendous backlog of typewriter demand

other countries are m various

negotSion

reflected

us.

The oil industry emerged from the

•

The dominant part that Latin America expects to play

Until then the present kind of labor uii-

;

take ad¬

can

mass?production iriethbds^ for manitfacturihg

p™)!
paV+»T«!??*■
wnmntW'nmwJSSS "

President, Shell Oil Company, Inc.

Royal faces 1946 in a position where it

new

aircraft destroyed 6,583 locomotives and dam¬
aged 4,425 more. Just before the end of 1945, our unY
filled steam and diesel i locomotive orders for overseas

ALEXANDER FRASER

cancelled.

were

Allied

A little

However, present strike troubles will be compromised

by the Royal Typewriter Company's reconversion prog¬
ress since. Aug. 15, 1945, the day on which all war con¬

ever, we

A staggering number of locomotives-were made
inop¬
erative in Europe. For! example, in the 11 months be¬
tween D-Day in June, 1944, and V-E Day in* May, 1945,

war¬
(but not settled) in the near future and our country will
fulfilled % then begin what should result in many
prosperous years,

than

power

lqws will eliminate the racketeer and give labpr
deal.

buying

tablish.

production lines within 90 days after relaxation of
time

est

To be busy means
production means

busy.

finding by Congressmen could be used profitably.

square

Fraser

Research and engin¬
eering developments in the field of diesel-electric locoK
motives will manifest themselves in 1946 and the impor¬
tant steps we are now taking will be important factors
in" the record of accomplishment the railroads will es-

would

every

greathave the

locomotives' of advanced designs,

However, the clamor of union lead¬

ears

rest will continue with

th£t typewriters might flow from

was

seen

Some day enough courage may be developed to incorporate all unions and enact laws to compel union? to
show where they get their income and what they do
Such

end of the war

reaches their

fact

President, Royal Typewriter Company, Inc.

machines.

and

Yf|

To meet the demands of the

Although our prime goal is to help re-equip America's
railroads, an important new market has developed in thfe
foreign field.
American locomotive executives who
Unfortunately we are in an elec¬
have returned from survey missions to Europe
report
tion year so that honest solutions
that mile after mile of railroad tracks throughout thp
cannot
be had on labor troubles.
continent are operating at. greatly reduced efficiency
Fear of election results causes our
because of the havoc wrought by Allied air power, lack
representatives
in
Washington to
of equipment and maintenance. With their manufactur¬
duck propers solutions
| of| pressing • ing facilities also destroyed,' many Governments ■ in
||:If-1I::Y?|;??• ;S Europe are looking to our shores for new locomotive
give way to vote enticement.
If our
equipment.
-

changed materially.
E. C. FAUSTMANN

New peaks in passenger and freight traffic will be
reached by the railroads all over the world in the
decade ahead. No small part in this rising curve will be

Congressmen would consider that only one-third of our
employed are members of unions and many of that onethird are forced against their better judgment to follow
unscrupulous leaders their courage in voting might be

industry passed from adolescence

Projecting. current conditions. Through the

devoted almost 100%

was

strated while we were at war, and we are going ahead
,?with peacetime research with renewed enthusiasm.

increas¬

conditions

strikes

production

The aviation industry

into manhood.

are

honesty.

such
of

wealth.

but the year

the

free

would

during 1946 and other cities that have only;?
along a single route, will be transformed into

time when the aviation

There appears

common

Under

heed

railroads

machines, the plants and the vigor.
It is no.idle thought that we have
gained 25 years of scientific. and engineering progress
in four years of war. This
progress is rapidly being ap¬
plied to manufacturing and production methods at all
of our plants. ? The value of research was clearly demon¬

ing daily.
While savings bonds are
being cashed, the proceeds do not
add materially to the savings de¬
posits of our banking institutions.
All we need at the present time
to start prosperity is proper thinking

During 1946 the Civil Aeronautics Board in a series of
hearings, examinations and awards, will add thousands
of miles to the airline map of the United States.
Many ,,
cities never before served by an airline will welcome its

will expand greatly during 1946
will be marked principally as the time when
foundations for post-war aviation were laid—the

accounts in banks which

greatly improved within the next
six months when the giant Douglas DC-4's, the Constel¬
lations and other faster ships appear on the skyways to
begin replacing and supplementing the; 170 mile per
hour, standard Douglas DC-3.; The faster schedules will |
appear first on the longer routes, and by early Fall, many
of the shorter routes will be supporting the big fourmotored planes.

the

that

road markets.
i

to be some
spending
at present and
mostly for inferior commodities, but
this does not seem to affect savings

Schedules will be

cohdiv

ahead

year

careless

Douglas, Boeing and other manufacturers between the
war period and reconverted America.

the

Our country is overburdened with spending money, a
which presages exceptional
business when
are

under? war

is now 100% converted to the
job of meeting the requirements of
both the domestic and foreign rail¬

condition

commodities

this

which

of domestic airlines will be a major
year and the orders already placed with
manufacturers are high in the multi-millions.
Orders for new type planes are by no means complete
and during the next six or eight months hundreds of
new planes will be requisitioned, thereby providing
am??
excellent
''carry-over" for Glenn Martin, Lockheed,

meet

energetic way

young

WILLIAM J. FIELD

plane

will

same

locomotives, spare parts and rolling
stock' to Y replace
much
of - their
equipment which did double and
triple duty in the war years.
The
American
Locomotive
Company,

President, Commercial Trust Company of New Jersey

influence this

railroads

wai%

developments,

industry > and

We know

sought.

outstanding

challenge to the

'j lionsJhif11Yv Y:

employees

being

are

Y■

transporting

challenge in the

forces, they

Additional

railroading

they performed

process.

rapidly

;

America's
'.

unprecendented typewriter sales and

full typewriter production.

been stops

payroll.

armed

selling positions

should

The buying power

aerial hubs by 1947.

the

production

although Delta's staff today consists of about 1,6001
people. In 1929, when aviation w^s in its infancy, Delta
employed only 60 people.

first plane

leave

our

and

^entire

material for sales and .production jobs.

improve this year and our industry wil aid greatly in
solving post-war unemployment problems.
Within;;12
months Delta alone will be employing about 2,500 people;

•

Royal employees

future.

near

The Company has been able to attract

airlines will continue to

of the

the

for

working capital increased from

financial

factory employment top

our

being added to

! $45,173 deficit in 1941 to a surplus of $847,823 in 1945.
The

level

see

nels..' The .'matter, .of

'«thesje essentials is

typewriter

our

integral in. the reconversion

are

tem¬

Acute hiring and train¬

are

-;"

Since 1940 the United States has gone without a great

;

bulk of essential goods and 1946 is certain to restore the
flow of these goods into .their normal peacetime chan^,

for the; present,

rapidly rebuilding

expect to

prewar

former

$3,121,054.
Current '; assets jumped from I
$385,169 to $4,573,035, and earned surplus rose from a

! $50,912
!

However,

actual post-war aviation period will begin.

DUNCAN W. FRASER

Chairman of Board, American Locomotive Company n

The present rate of production-

sales and factory organizations.

year y

However, by 1947 that demand will be met, and then

[the

prices,

depressing effect upon earnings.*

porary

high demand for $}

completely meet this

Machine

coupled with price ceilings, is naturally having

greater:

equipment limitations and the normal pains

because of

[that

unable

price restrictions.

remain at prewar levels.

(airline seats during the post-war years—a demand the
airlines

Thursday, January 31, 1946,

Speaks After the Turn of the Year

increases, but has not lost time in reconverting because

[hurry than ever before to complete his business trip
and return to^ his desk
Vacations postponed during the
[war will be possible this summer.

Sfff|

the considerations pointing to the desirability of price

[to offer—as purser, ticket agent, reservations clerk and
[mechanic—and the parents of these pilots look upon
airlines in a different light today than they did before;?
the

1 'i

by higher production costs. The. Company has explored

day for nine ippsitions. as pursers.

one

'«

Y:v:?^'Y?w

travel.
Y

The

ing

airlines

growth
fleet

carriers totaled-166

now

without

modern business.

combined

•

are

•

experienc¬

| parallel in!

June 1942, the:
S. domestic |

planes, with

estimated book value of $15,000,000.;

Today the same carriers are operat- .*?
Jack Frye
ing approximately 375 planes, with. ?
an
estimated value of: $25,000,000, Y?M' : ??: Y*" | |YYY
and have on order for delivery in 1946 and 1947 an esti¬
mated additional amount of $250,000,000.',: The domestic
(Continued

page

562)

Volume

163

Number 4460

THE COMMERCIAL & FINANCIAL- CHRONICLE

French Cabinet Approves

under

date

Jan.

the

from

Sherwood Sec.

Ministry of Information at Paris:
Nationalizing of Gas and
"Acting on the reports of Fran¬
cois Billoux, Minister of National
Electricity—Food Rations
Economy,
and - Pierre * Tanguy', The French Cabinet has adopted
Prigent, Minister of Agriculture
the text of a law draft pertaining
and Supply, the Cabinet moved
to. the nationalization of gas and toward a
temporary solution of
electricity.
This
text, .it ;was the desperate food situation. Ceillearned (Jan. 19) from the French
ling price of meat has been fixed
Press and Information Service, an
at 100 francs per kilo (a little
agency in New York of the Provi^
oyer 2 lbs.). Rations for this week
sional Government of the French are 5 % ounces of frozen
meat,

Republic, is to be submitted to

plus; Z}/%'. OdnceS of

Constituent Assembly
proval.
■
-V :

potted me^t

the

The,

agency- also

follows

the

for

ap¬

sausages

piade public

Bread

Sherwood

Sidney

Secretary

Import Bank was announced
Jan. 22 by

the
on

William McC. Martin,

Jh, Chairman of the Board.

Foreign Requirements in the Of¬
Special

period he served successively
• Secretary * of
the
Advisory Commission to the Coun¬
cil of National Defense; Executive
war

fice of War Mobilization;

Assistant

Officer of the Division of Industry

to
the
Administrator,
Foreign Economic Administration;
and
Consultant to the
Foreign

Operations, ; W a r
Production
Board; Assistant to the Director

Liquidation Commissioner of the
Department of State.
Prior , to

and

going to Washington he was in the
copper business.

of the

Production

Combined

Resources

Consultant

Board;

Assistant

Mr.

Sherwpd has been with the Gov¬
ernment in

Washington in various

capacities since 1933,
mained

During the

general,

unchanged,

but

persons

engaged in hard manual labor will

ft!''
in

appointment; of

Board of Directors of the Export-

per person, not count¬

rations,

;

.561

I or

tions.I|I^r;i!|:j
;

Board

Export-Import Bank1

The

ing; the; usual • supplementary^ ra-.

information received

■:

receive

112%' ouiic^sr per v week

instead of 1QV2 ounces.

re-

; ;

mm.

MERCANTILE - COMMERCE
■

},.■>. :„v'■

'■ :"v

:,'V. v

BANK

•

AND
Locust

i--Xv'V:

TRUST
-

Eighth

•

DECEMBER

THE

>'vr^

:■'' ■'

—■

St. Charles

31,

1945

RESOURCES

Cash and Due from Banks.

United

C*.

COMPANY

;

„__

States Government

rect and

Obligations, di¬
guaranteed (incl. $104,568,343.25

pledged'5')

___________

Other Bonds and Securities.-

Demand and Time Loans—
Stock in Federal Reserve Bank in St. Louis

Heal Estate

(Company's Building)

merce

Estate (Former

•

Bank of Com¬

Buildings)__-____

Overdrafts

1^00,000.00
-

23,149:92

Customers'Liability
Other' Resources

.1..

Acceptances and Let.-.
^

DIPLOMATS and businessmen, travelers by the
ships well.
-

Other Real

thousands, know these white

Since the

of the century it has been
\

turn

•

* *

.«* *

an
,

Inter!
r

American custom, to travel the Caribbean via the

.u.. •

Great White Fleet* Yet the
:

ships of the FleetU are
'->!♦ v*

,*u«-

'*>.

VW-rx

equally well known for thelr fast, reliable
t;■<:%

;'JXIAIILITIES

■

..-J..

service;
„..

'Z:

cargo

They have played a prominent part in

Capital Stock

__.$ 12,500,000.00

SurplusV^_^^_^^^_^__:.___
Undivided*Profits

7^^^^^._

Reserve for Dividend
Reserve for

5,000,000.00

__^..i - i_ M

/". 1,728,983,26

Unpaid Dividends..- _3,856.30
Bank's

Liability: on Acceptances and Letters,:

fpfvCredit

|||S|

1,240,118.53

Other Liabilities

com¬

States*

■1^-v t v:',-

v':;;

r,;'

'?>

.•••:,

■

//,-•

** r.

•

\J' I;"!-'"
'

' I.'

'-V '•
il Since Pearl Harbor the Great ^hite Fleet has

;:|

■

v .■•

been devoted entirely to the war effort. Now regular

sailings

are

being gradually resumed. If

you

98,051,73

Deposits, Secured; II
\ : ' I " I
:
U. S. War Loaiu$ 86,792,908.38 :
Other Puh. Funds
5,768,712,21 $ 92,561,620.59
,

Other

Healthy; 2-way interchange of

modities betweenMiddle Ahierical#^
•

4,735,929:58

Declared^:-^ ,5;;-^ 256,000:00

Interest, Taxes^

developing

have
•

shipping problem involving

countries listed

any

of the

below, please call bn us.

Depositsf \ I
.J..:..$240,424,732.54

Demand

?;llSavingsIc:Siai®51,038,186.9$I:;:::I^te-:::

Time

.........

131,384.34 $291,594,303.86 $384,155,924.45
$409,712,863.85
UNITED FRUIT

*Ait Securities yUdgefcate to the V%

Government

Missouri and ike City Of St. Louis,-to -secure deposit and

its

COMPANY

Agents, State of

fiduciary obligations.

COLOMBIA

COSTA RICA

DOMINICAN REPUBLIC

MEMBER FEDERAL DEPOSIT INSURANCE
CORPORATION

EL SALVADOR

J *

GUATEMALA

JAMAICA, BW.L-*

CUBA

★

ECUADOR
★

HONDURAS

NICARAGUA^ PANAMA:

PANAMA CANAL ZONE

•

•"

562

V, THE COMMERCIAL & FINANCIAL CHRONICLE

Business and Finance
funds

:';i

(Continued from page 560) •,
fy§
carriers operated two billion seat miles in 1942 as com¬
pared with an estimated nine billion seat miles in 1946
;

and 141/2

in 1947.

passenger

rates

Y*ri4-Viiv>

•

■

mand.'

1946

y/ill be

tles

period
earn¬

be solved

can

shall

turned

whole Will not Vary much from that enjoyed during the

•

y _*

for

~ " V

? 'J

" " i

-1

Manufacturing Co.

see

and

•* v"* v

No. 4 priority

respective^companies

best

free

mean

planned fpr

furnish

ture

was

tion

I believe

for

future

President,

ments in the

Distributors

Group,

Incorporated

The

has taught us a great deal in improved metal¬

war

lurgy.

Pent up demand for products which

evident

risk

use some

every

hand.

for it. We

thing that
a

new

that

can

1946

Such

companies
assets

doubled

the well-being of everyone.

entirely

stocks and bonds of

our

leading

;

en-

tude

terprises.
Appreciation of the effects of this

idly

extraordinary growth of a relatively
new
type of financial institution is

my opinion
the outlook
banking for the coming year is

cellent.
in

our

likely

confined

rather

from

informed

professional

small

investors

under

writing

and

the

or¬

distributing

and

ters

stockholder influence upon the
management of our large corpora-

Gaston

y'^Htions. Yet

stitutions directly influenced appear as yet to be little
aware of the potential force of mutual
investment com-

panies.

prosper¬

Geo.

the

Perhaps 1946 will increase the number of those

threatening

they substitute

stability. It is

informed and alert critic of corpora¬
'
/;
'

tion managements.
No major changes

in policies

practices of mutual

course

strikes,

constitute

real

which

if prolonged

menace:to

business

central

our

in the de¬

although

year.

opinion that

jthe ioi«

favorable.

CHARLES P. GULICK

The prospects for the chemical industry for the com¬
from many points of view extremely

ing year are
encouraging.

Because of the substantial mora¬

torium on-many types of;; consumer,
as well as capital goods/production

during the years leaves a tremendous
A substantial part
is that of the produc¬

"void to be filled,of our business

tion of processing chemicals for in¬
dustry.' -The demand for these goods

course

the

will denend

largely

unon

activity of the fundamental indus¬

tries

served./ There

doubt in

mind that all of these industries
operate at a very high per¬
centage of capacity and will do. so
if some of the present (and I hope
temporary) obtacles of reconversion
my

could

are

cleared away.

of many kinds,
particularly those made by the
Committee for Economic DevelopBased upon surveys

and

would

Chairman of the Board, National Oil Products Company

contrary,

"group investing." \ > •.« §&$
Bernard F. Gimbel
downward. Finally, on the favorable
Fortunately the mutual fund exerts forces which are y
side, the pent up demand for ar¬
wholly constructive. For uninformed, emotional buying
ticles out of production during the war continues un¬
and selling they substitute appraisal of values and care- > i
satisfied and once the flow of these goods from the fac¬
ful placement of orders. They promote decentralization
|| tories gets under way, this will contribute much to
of the business of security distribution in that the retail
maintaining the satisfactory level of sales volume I look
distributor is no longer dependent upon the New York
| forward to in 1946.
or
Chicago underwriter and can select investments
In appraising 1946 prospects, I am not overlooking
solely on the basis of their suitability for his customers.
pending and i

For the well-known indifference of the small stockholder

Jhing$/6^^

rap¬

■

who follow the progress of

located

cen¬

this is not likely, to assert itself until.

Greenwood

mediate outlook

satisfactory levels.
that/estimates of
peak in unemployment expected to :
be reached during tbe first half of
1946
are;
being
sharply : revised

peace

banks

cities, but these shifts, while,

fairly late in the
All

last year's highly
It
is significant
/

from

manufacturing

With Reconversion progressing as
favorably as it Is at present there ;!

volume has continued to go head of

many individuals and in¬

those

j
shifts

con¬

affecting the figures of a compara¬
tively small number of banks, will
difficulty since the
banks have been anticipating them
and have wisely prepared for them.

consequence

war

financing

mand for commercial loans

but

be made without

expected. With lay-offs
plants all but completed

materialize.

reserve

will

deposits

diminish

located

anticipated. As
the predictions of a
dur¬
ing the period immediately; follow¬
ing the end of hositilities- has Jailed-

under¬
industry,

not

deficit

There

substantial drop in sales volume

security

will

for
ex¬

increase somewhat'

tinues.

ment is far less than

...

management

affecting security markets, the

ganization

war

Government

releases from the armed serv¬
ices ahead of schedule,' • unemploy¬

small >

circle. The concentration of funds of

thousands

than

banks

should be some increase

war

has progressed

economy

The total volume of

and

yet

Kenneth

from

°f Seattle

V
,

Reconversion

substitute for

GEORGE H. GREENWOOD

optimism as of today on
prospects for retailing during 1946.

■

There is

Chairman of Board of The Pacific National Bank

Iproad aspect and recognizing that

sooner

But I think

ity in the retailing field parallels conditions in industry
as a whole, one is
justified, it seems to the, in an atti-

size.)

of course, almost
comprised of the listed

The

/production in any successful economy.

President of Gimbel Brothers, Iiic.

are,

ment,

business

and

improvement

which will include the chemical in¬

Charles P. Gulick

belief, however, that the differences
responsible for the nqt unexpected /upsurge of /strikes • dustry .will move forward with accelerating force/volume
'
: /(Continued on page 564)
will be resolved in time to avoid serious deterioration in/:
my

feeling prevails generally the better will it be for

eral

and will have

be done to fend off depression and build

economic climate Will blossom'forth and make
of promise with many bright potentialities.

Viewed in

war

prosperity is to get back to work.

year

at the beginning of 1945, sales plus

costly

already paying for it; but the best

are

BERNARD F. GIMBEL

market appreciation during: the year
added at least half a billion;
(Sev¬

steel is

use

We have gone through a long

to pay

other workers.

Placing them back at work under

proper

Grace

Eugene

making of flat rolled steel in the past dec¬

for those who wish to fit * themselves for better jobs.
All in1 all, I firihly believe that: industry given the

special perspicacity is required to forecast that
1946. will bring further expansion, in influence as well
as size, of mutual investment companies.
With gross assets of over a billion

the future of

ade have opened up a vast number of new markets.

Walter Geist

carefully devel¬
oped, long-range program, we have found the veterans
offer far less problems than were predicted.
We have
upgraded many who came back to us with newlyacquired skills. Our training plans have been enlarged

na¬

was

general ma¬
chinery export bookings, for example/are approximately
300% ahead, of production.
An important part of peacetime production plans con¬
cern the veterans.
These men are returning in increas-*
ing numbers-rmore than 1,300 of our. men haye been re¬
employed—and they are bringing with them a. vigorous
spirit which is a challenge to all of us. I have been quite
/happy to note their industrious attitude and to learn that
their, ''quit rate" is approximately one-half of that of
.

our

economy.

steel, if allowed to operate normally,
never better.Great improve¬

post-war employ* at our* plants.
appears to have been
a

items of American production.
the export picture is quite bright.
Our

KENNETH S. GASTON

ahead.

are free to forge
use the '
*-• /'

employment.

On the other hand,

war-ravaged countries before they will be in a position

look forward for several years with

one may

^/
coun¬

deeper will be the harm to
tional

healthy move to encourage greater circula¬
capital among those about to enter new
fields.
The government is aware, I feel sure, that tra¬
ditional tree enterprise still is the best form of business
operation, and aims to preserve this freedom.
Another factor which will help to keep business
barometers high during 1946 is the reopening of foreign
markets;. ~ Some foreign trade .agreements remain to be
completed, much rehabilitation work is ahead in the

confidence.

free economy.

insurance

I hope to see accelerated relaxa¬
tion of government controls. Revision of the tax struc¬

E. Chester Gersten

;

the

The longer such threats continue the

firms will grow into hew
enlarged
factories.
Research

our

serve

Obviously,, no satisfactory peace¬
time condition is irt the cards for the

ades.

national

Tnent increase of 50%

•

science, free to compete,!
the best manufacturing
processes, and free to make neces¬
sary profits to support progress and
steady employmentall a part of a

"full

conservative.

free to adopt

its

unemployment should be relatively
low for the year.
During the war,

the international field, that is only
.what one would expect after the

V'M

magnificent opportunity to

By that I

Full-scale production will provide
jobs for the returned servicemen and

^ ^^

1,v

ucts for peace which will
further production impetus.

dec-

,v< ..." \

which developed the
many new tools
war will
bring forth new prod¬

con¬

several

v>^hairm^»^BethIehem Steel Company

the;

for

While much remains to be done in

upheavals of the past

close.

*•'-

•"

now;coining to

try in the coming several years if the managements of

that during

open

1 n

Steel has

:•

production throt¬

wide

■''I,:;" ;r/;/»/SDaWGRACE:®

*■

....

investment

mutual

year

•

many

system is well geared to handle that /
important phase and the funds are
,

♦

worker, the investor, the employer
or the public until present industrial
.disturbances cease. The long continued threats to most major indus¬
tries
inevitably retard action on
those expansions which are the best

•

_\«

Speed ahead" the order of the day.
As equitable agreement is reached
on
labor demands, expansion plans

Assuming that common sense will prevail and adjust¬
bring about a satisfactory and lasting rela¬
tionship between labor and management so that re¬
conversion can proceed to a greater
extent than at present, the outlook
appears clearly to be one of great
production,
distribution and con¬
sumption.
Contacts with hundreds
of
business
concerns
among
our.I
bank's customers definitely predict /
this.
The pent-up demand for all
kinds of goods is, tremendous and
facilities for producing them never
larger.. While much can be done in
the matter, of distribution, still our

/»

However, I believe that these dif¬
ficulties

ment will

sumer.

poor

Settlement of labor difficulties rates

President, The Public National Bank and Trust Co.

the

year

That figure now

for many management
groups as industry launches
first full year of peactime
production since the war.

prospects of the industry are ex¬

spent

record

President, Allis-Chalmers

E. CHESTER GERSTEN

WALTER GEIST

the entire organization and facilities of the
airlines must be expanded. New hangars, shops, ticket
offices, and other facilities must be provided. Many
thousands of additional personnel are being employed.
Because of the high standards of service of the cornr
mercial airlines, the new personnel will be required
to undergo extensive training prior to their, serving the
public. The airlines are/ therefore, faced with! "greatly
increased costs during the transition period required for
the inauguration of new equipment. Once this transition
period has been passed/the airlines should enter a long
period of continued development.

±*m»

companies.

Before the new equipment can begin to produce

available

•.

it.«

My judgment is that sales volume during 1946 as a

results—and in general have
performed creditably".

revenues,

;

and. prolonged delay in the manufac-

power

ture of goods 'the public is waiting for.

Managements- have every inventive to produce

1946 we

cellent, it must be recognized that the expansion
now
under way will materially affect current

ings.

„

41-i/swk

performance in
that their shareholders dan1 fedeem their shares on de*

craft.
While the long-range

Investment Com- ' purchasing

subject; to | complete and detailed publicity, all .have

within themselves the corrective for

now

are

in prospect for 1946. The

Act of 1940, which placed them 'under
jFederal reg~:
ulation, has been operating smoothly. All companies are

lower in many cases
than first-class surface
transportation. Wartime load
factors may not be maintained as service is expanded.
Costs, and particularly wage rates, are rising substanti¬
ally. However, we believe that these factors will be
equalized by the improved efficiency of the newer ans
where

Speaks After the Turn of the Year

seem

pany

'
The above figures are exclusive of a proportionately
greater growth. in internationaLair Jransportetiqh. #ow
taking place. Before the war, U. S. carriers made six
North Atlantic crossings a week as compared with an
estimated 110 crossings per week by July of this year;
Service which formerly extended only to London and
Lisbon will soon go to Moscow, Calcutta and Ceylon./•■/•
Many new problems must be met by the industry in
1946. During the war, with load factors at a maximum,
mail and passenger rates were progressively lowered to
.

;|| Thursday, January 31, 1940

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

163

them-right!"

orld Economic

7. i-

Recoveiy at Stake

Iii Cnrient Political Decisions
It is

effort

reconvert

pauperize

Central

Europe

world

consequences."
The question is

Germany

Can

one cre¬

ment;

that

ate

the

heart of

doubt.

vast

slum

ex¬

Americans and Britons

feel

not

The

whether it

whether

grim

punish¬

there

can

Germany

Europe

whole.

as a

Thus

•

far

Soviet Empire?

the present

trade picture

that

preamble to a
tion of British-American
c6mmer-1
cial policy it said:
4
course

"Human

institutions

But after
of

thatx the
wisely.

great

choice

United

use

Unhappily the statement smacks
thinking..For the choice

democratic versus totaltariarn

thing

made.

Only those who adhere to
Pollyanna school of world
politics
still
believe
that
the
.

the

United

Nations

such

are

position to guide affairs, wisely or
otherwisely.
Clear
around
the
world the major powers are strug¬
gling

"against

each

other

for

restored

some¬

normalcy?

economic

"Whatever one may think of the
phrase One World, there is a good
of reality in the
conception
One Europe.
One can no more

deliberately destroy

ductive

likd

mechanism

Since

prewar

the

notably

York

"Herald

from

Berlin

disparity

wider.

dated

cated

off

dispatch

Dec.

European countries to remain
scathed

than

could

one

American

factories

zone

arfd, more significantly, that
plans to boost production to 68%

peace

1938

the

figure for that

lem in these

un¬

blot

out

not

erase

The

between

terms,' but that

does

widespread

occupation authorities. Meanwhile

charges

(Continued

that

page

565)

That world recovery on the eco-

North America

from

NATIONAL

the greatest industrial poten¬
The productive

BANK

tial in the world.

capacities and the markets of that

thickly-populated
not be

continent

can¬

destroyed with impunity;^

An economic slum of such dimen¬

DETROIT

DETROIT, MICHIGAN
y.
-yyyyy^
"•

power," with no holds! sions ^wopld *ipset ih&: balance of
MU'ToWU"lu*^y^^'l "Ifwl, P
The rights and prefer- world economy, teato estaMish&
ing a tragic breeding ground for
ences of smaller countries are be¬
ing ignored and among the great disorder, new experiments in po¬
nations the sole arbiter is raw litical oppression and new wars.

}

Unfortunately that

recovery

STAtEMENT

has

ciples of the Atlantic Charter; In¬

OF CONDITION DECEMBER

been cruelly handicapped > by ter¬
ritorial and population settlements

the power-vacupm created by
collapse of Germany!!! It is
treating
"liberated"
victims
of

)

Complete Banking and Trust Service

In
shattered
Europe, Soviet
Russia has marched roughshod in¬

jy-y- :'yyyy

force.
,

the

which violate economic good sense
as much as they violate the
prin¬

*Z.215SS

Cash'on Haod and Due; from Other Banks

Germany an<J sthall Allies as arbi¬ disputably Polish cities have been
annexed by Russia and indispu¬
trarily as satellites of Germany.
The main question still to be an¬
swered is how far westward So¬
viet penetration will
extend, and
the answer will not be shaped by

the United Nations, It will be de¬
termined by the vigor and skill
with which Britain and the U. S. A.
counteract the dynamic Russian
drive.

The western fringe of European
peoples, from the Scandinavians
to the Spaniards, look to the
Eng¬

lish-speaking

powers to saye them
from forcible inclusion in the Rus¬
sian area- of direct or indirect

domination.

Their

chance

escaping this fate depends in large
measure on whether Central
Eur

^pWG^man^ Austria,

Czecho¬

slovakia— falls under permanent
Muscovite control. Without Cen¬
tral

Europe

as an economic

base

tably

German

tacked

ducing

areas

sistence

cities -have

United Stated Government Securities

Stock of the Federal Reserve Bank

been

to Poland.'

Food pro¬
which the sub¬

Europe

Other Securities

Sudetenland
into

are

833,851,605.36

1,455,000.00

...

58,433,009.13

•

.$142,719,895.86

Real Estate

Branch

Mortgages
Buildings and Leasehold Improvements

Accrued Income Receivable

Customers'

Liability

.V
.

161,917,636.24

2.805,208.61

crowded

Germany. They are be¬
ing shoehorned into a Germany,

moreover,

LIABILITIES

Deposits:

that has lost one-fourth

of its farming area to Poland.
This contracted country, packed
with additional millions, will be

deprived of

Commercial, Bank and Savings
t

8963,899,829.69

United States Government

245,949,629.941

-Treasurer—State of Michigan

industries and

some

Other Public

restricted

in the development of
Viewed from the angle of
retributive justice, one can dis¬
miss the problem with a "Serves

Accrued

others.

....

Deposits
Expenses and Taxes Payable
.

Common Stock Dividend No. 23,

'1. A-

Common

31,647,413,07! $1,258,522,558.89

2,664,755,70

;

812,500.00
.
,

^1,970,568.46
7,855,183.82

17,025,686.19'

Payable February 1, 1946

Acceptances and Letters of Credit
-

....
,

1,970,568.46

•

$1,326,506,470.49

Preferred Stock

1,014,362.91

Acceptances and Letters of Credit

19,197,740.38

over¬

—

Reserves

D11R

265,059,079.78.

being

already

Loans and Discounts

Soviet-dominated sphere.
About
12
million
people - of German
origin — nine from the Eastern
provinces of the Reich and three
from

•

Loans:

dependent

have been arbitrarily cut off from
the continent and joined to the

driven

Capital Funds :<:%.

Common Stock

.$ 12,500,000.00

♦

\»

'^8,500,000.00

•

V
_

Surplus

Filling, Land Reclamation,

;

Undivided Profits

27,500,000.00
6,180,903.62

46,180,903.62

—

Canals and Port Works
L

•

$1,326,506,470.49
■y:r^:y'ly:y[y.

f-H

River and; Harbor

;

are

pledged

to .secure

public and

;

United State* Government Securities carried

Improvements, Deep Waterways

trust

$'286,874,237.13 in the foregoing

statement

deposits and for other purposes required by law.

We
v

are

equipped

Execute

all kinds

V tion and port work''anywhere

dredging, reclama-

the United State* >,

Contractors

the' Federal

DIRECTORS

X
..

Government

HENRY E. BOBMAN

^It OTARLEST.
!

Correspondence
v

■

invited -from

and

v ' "1

Private
'

;

JAMES 1NGLIS

GEORGE A. STAPLES

JOHN B. FORD, JR.

WALTERS. McLUCAS;

R. R. WILLIAMS

JAMES S.IIOLDEN

C. E. WILSON
TRUST

New Vork!7
15 Park Row

Houston 2, Texas

Citizens State Rank Bldg.

R. PERRY SHORTS

ALVAN MACAULEY

Longest 1 Experience

Atlantic, Gulf and Pacific Co.

W. DEAN ROBINSON

WILLIAM S. KNUDSEN

FISHER

CHARLES T. FISHER, JR.

Corporate

interests I Everywhere

zone

With the approval of the Russian

the problem.

nomic level requires the recovery
of
Europe seems self-evident;

Aside

indi¬

output in the Soviet
had reached 30% of the 1930

exclusive Russian preserve?

still

New

that

will ; be open to, world trade*

how mucfr of it fenced

han

Tribune"

level

ized controversy between the ad¬
vocates of "hard" and "soft"

great pro?

then

grown

minor frac*
tion of its accustomed
economic
strength. The. highly emotional¬

wealth and

barred.

than

compared to 5 to 10% in

the U. S. zone."

Germany and expect neighboring policies rarely analyze the
prob¬ during 1946 have been adopted

recover more

deal

all

c\ 0

of wishful

has in most respects already been

continent

The fundamental choice

is whether countries will struggle

against each other for wealth and
power,;; or work together? for security and mutual advantage."

is around -forms

J11®?1

regimes .and
and
the
J
regimes
the like.
Deeper down there are two in¬
timately related economic issues*
First, can the ruined and bankrupt

important

Nations

Eu-

tarian

war some power

exists:

Outwardly the struggle

level,

with Soviet economy) and minus
its industrial heart in Central Eu¬
rope could hardly be expected to

policies and emotional confusion.'
r°Pe

con-

are

seryative; only within limits' can
they be moved by conscious choice.

berlin, : recently put the dilemna

.this way:

economic

what economy eastern Germany
had left. By last week, industrial
production was at 20% of the 1930

In* the way to giving up Central Europe
declara- ! by default,
through blundering

global reconversion.

achieving

26, "Time" reported:
1
"Though the Russians had plun¬
dered industrial equipment at will,
they had started the wheels of

Britain and;America

.•

■

recovery
much faster than the
other zones.
As far back as Nov,

One of the ironies of

ih Tp^ask' such questions is to be¬ the; elimination
of
Germany,
gin', to Cwonder whether a venge¬ which used to be an
have -been ?• out-maneuvered
at
important
ance v'; that: undermines
the eco¬ outlet for British goods, has added
mon denominator, in all the for¬
every turn. First they gave -up the
nomic vitality of
Europe does not substantially to England's load of
Baltic countries, including Poland,
eign news in your morning paper, 4
help t6f fulfill Hitler's boast that economic troubles. The
to Russia; only recently, at the
even where economic matters are
effect on
if he falls he will pull down the
nations closer to Central
not mentioned.
Moscow meeting of the three For¬
~
Europe
pillars of Europe with him.
A must be even more
drastic.
L?: Early in December our State eign Ministers, they surrendered
competent commentator ori for¬
A
Europe minus its eastern
Department made some remarks what/ remained of the Balkans;
eign affairs, William Henry Cham- third
(already largely integrated
that are pertinent to the problem and now they seem well on the
the

otherwise, reflect the

Soviet propaganda.
The strange
part of the story, however, is that
the Soviet zone of occupation in

rather, is
punished by the

from Soviet
from critics who, con¬

sciously

question,

can

being

chiefly

come

sources

kind of economic measures which
inflict colossal damage on

are

too tender with the defeated Ger¬
mans

deserves

izing all of Europe?

Pacific to the Atlantic. J

bring it into line with
changed power relations
among nations.
That is the com¬
economy to

America

as a

Soviet

Chicago and

pect the rest of

562

Pittsburgh and

economic vantage point, it cannot
be so glibly dismissed, • Can one

Europe, embracing perhaps 150
territorial buffer,against
million people without condemn¬
dynamism,' Europe must
ing jt, to beqome part and/ parcel
tend to become part of the Eura¬
of Asia, or more
specifically the
sian mastadon sprawling
the
and

possible, indeed, to

regard the whole complex of cur-rent international developments
as' an

from

permanent basis without pauper¬

(Continued, from page 518)
health.

Viewed

Tlds. hank
■w

«'

acts as

t"J

».

DEPARTMENT

Trustee, Executor and Corporate Agent

io-v

Member Federal

1
1
c
*(~v - •
fil r*4ys^',:
Deposit Insurance Corporation
'

y"1'

Thursday, January 31,1946

THE COMMERCIAL & FINANCIAL CHRONICLE

564

of the Year

Business arid FinanceSpeaks Afters the Tu*ri
speed, with timet Industries, including the chemical
Industry; have developed many new products which are
yet to be made and marketed.
Publifr psychology is
ready and expectantly awaiting these new products.
Certain of these products, particularly those in the tech¬
nological fields, will ' influence the operations of many
plants in many industries.' American industry has be¬
and

taining of law and order in a community and the right
should be the prerogative of an
I

depend greatly upon the cooperation of

results will

segments of our economy.Cooperation is the key
that will fling wide the doors of a prosperity never
all

this

actual minimum at this time.

world," must also learn that it is tremendously import¬
ant that this concept cannot come to be unless we alSo
Any group or block which is

unwill¬

ing to cooperate with all other groups^~and I am referring
to such groups as Government, owners, management,
labor—will be guilty of obstructing and impeding the
fruition of the highest possible living standard which all
Of these segments

being.
Again I

say

the funds

are

What

here;
,,

v^nVj.1

wish so ardently to see come into

':v

•

waiting fori
~

J.C i-$

-■»

they have

Naturally, it is difficult to hazard a guess regarding
the future—particularly in these uncertain times. We
have experienced a terrible conflagration and, in my
i strictest economy in order to assure our country of a;
1
"
opinion, the repercussions of same
more lasting prosperity.. >
'
»
{i •
4
will eventually overtake us.
The matter of retaining and extending! riniiecessary
In considering the future, from
wartime controls and price regulations is another factor
the standpoint of this country, the
which will have a negative influence on business.
I
problem must be divided in two hope that Congress will take a constructive position in
national and international..
this matter.
•
i
The
national
situation
is,
of
The effect of influences, such as mentioned above,,
course, of vital importance to every¬
upon various lines of business, will not be entirely uni¬
one
in this country. This country
form.
There is unquestionably considerable over-ex¬
was
built along the philosophy of
pansion in a substantial segment of the industries in
free
and
individual enterprise, in
which we are engaged. There will be some contraction
which the individual assumed the
,

good business in this country during the coming
As the year progresses, however, X believe busi¬
will become more competitive in certain sectors
and many industries will find it necessary to go through
some drastic readjustments.
Governmental policies will
have considerable bearing upon any sustained prosper¬
ity in this country,

and

responsibility of building up a busi¬
ness
and
creating
employment,
wealth and purchasing power.
The
savings were largely used to create
vehture capital and develop addi¬
tional enterprises.
This
country had been, blessed
with vast resources, which had the
W. Harnischfeger

tendency

to stimulate

and bring about a

Buffalo, New York
In 1946

perity over the years.
In 1932 the country went through one of its major
business crises and, instead of permitting the natural
fbrdesvto bring us^ui,of isamc,;cyye:^started in on^'program of artificial subsidies and; regulations; dEver since
that time, we have been drifting in the direction. of a

popularly classified as a war industry, it is the fact that
for the .past four years the major
im¬
policies and activities of banks have been concentrated on financing and
furthering the successful prosecution
of the war. The,challenges posed byf

;

good.

which

which
are

l- i

V--1

opportunities of our post
There is every reason
for7Confidence In the expectation
banks can and will meet all the le-.
needs and
war

•

economy.

gitmate

requirements

reconver¬

sion and business expansion*
* It is readily apparent to even the
most casual observer

that

banking system is abund¬

our

antly' conditioned to*supply

capital and credit. Of at

.'-••of Richmond

reconstruction

strikes

•

fully in the great task of its orderly
refunding and discharge, greater at¬
tention can now be given to the

regard to the international picture, X believe that
this country arid Hhe wprid, jn general, finds itself: in a
rther precarious position.
The next few' years will
probably determine - whether the capitalistic form of
government will decisively > influence world affairs or
whether the communistic form of procedure • wih get

We have depleted a great many of our natural re*
and we are about to enter a period of rebuilding

While it will continue to be a first

and vital function of all banks to
finance the public debt and cooperate

Sources

and

ca¬

pably met by our private banking
system. The record is outstandingly

ardiwhichl

ffj

demands of war have been

the

readjustment.
l\ *
the construction industry^ there appbars ' to; be a

*'planned'i;oconomy; We deviated from "the gold standi

lion.

commercial banks will be well started on their
While banking was not

transition from war to peace.

the economy

vp to that period, had been* more or less, an
regulator,for our economy; We Replaced this
with man-made subsidies and this, naturally, had a ten¬
dency to i progressively dislocate our economy.
We
entered into a period' of deficit-financing and this was
further accelerated by the war so that, today, the result
•is, we now have a national debt of well over $250 Bil¬

Traders Trust Company,

president Manufacturers

least'equal importance is the mental attitude arid ag¬
gressive intent of bankers to take the initiative in mak¬
pent-up demand and this segment of industry should be
ing their services and functions more widely understood
relatively prosperous for some time to come;
There
arid; more readily available than ever before. Bankers are
too, the question will arise as to Jiow some of the pubno longer the political whipping boys of the thirties nor
lic projects will be financed over the long tu«, taking;
are they restricted and burdened by either adverse, pub¬
into consideration the. national "fiscal situation.*
lic opinion or the problems engendered by a decade of
The railroads have "gone through^ a long period of
depression. Quite the coritrary. They are ready to go and
capacity operations Without adequate maintenance; and
dare saying so tq business'and the bubliCi ^.
;
y :
*'
replacements and there,-unquestionably,"'is ;a great
The* world is^^ concerned With what comes next and its
amount of buying power which is pent up in that seg¬
hope lies in an expanding economy, a rising standard of
ment of industry.
t
•
-.
living, a greater utilization an$ efficiency of manpower,
The durable goods industries arid the housing indus¬
materials and the-machinery of manufacture and dis¬
I
try, of course, will operate at capacity and there, un¬
tribution, the furtherance of scientific and technical re¬
doubtedly will /be a substantial demand in ^ those' lines
search and the exploitatipn of the products of the test
for some time to come. The progress which; will be
tube and laboratory.
made in expanding these, industries; will depend someIf the sixty-four dollar question is "what are we wait¬
.what on the Government'*^labor;^^ipqlicies^and;whether ;
ing for?'—you can be sure of one big lusty answer.
OPA will permit venture capital to earn a decent return.
11 isn't the bankers.
In the consumers industry, there will be a heavy de- mand during the coming year and, with; the! pent^up •
II. IIITER HARRIS
savings, the demand for consumers goods will be backed
;
President, First arid Merchants National Bank,
by buying power.
....
•
|
\
I.
In

sustained pros*

automatic,

LEWIS G. HARRIMAN

„

:
the entire picture, I believe therei will

year.

ness

to a point

* W H ARNISCHFEGER

export
summing

In
be

President Harnischfeger Corporation

[

gone up by
fax bill which has been

taxes,

spending is curbed arid wage increases are rationalized
where the increase iri cost can be offset by
new
methods, which usually require capital, 'we will
very likely go into a period of inflation whicl^ will, of
course, mean a high level of business for a ;short time,
followed by a very drastic reaction. I hope that Our
Government will modify its position and insist upon the -

^ ?>

.->V»

years^firsti with such countries which have credit bal¬
ances
with us—thereafter, or simultaneously on the
basis that we must import from such countries to which

believe
is the

reactionary influence on-our economy.
The question naturally arises, whether we are going to
have inflation -or deflation. * Unless« the * Government •

cooperation is the key. The plant is here,
here, the workers are' here, the market is

are we

leaps and
bounds! The new
passedf and
has been effective since Jan. 1 of this year, has reduced
taxes and will give some relief,: Nevertheless, a re¬
duction in taxes is not the only thing that is required ;
to sustain a period of prosperity.
The important prob¬
lem is to balance the National Budget, which, in turn,£
will require a very drastic reduction in governmental
expenses. With the additional appropriations which; are
being made and contemplated through consideration of
expansion of social security and unemployment insur¬
ance, health insurance and the full employment bill,
there does not appear to be any; possibility that there
will be a drastic reduction in governmental expenses
and balancing of the budget in the,years to come. This
can only result in a national, deficit which will affect
all of our bondholders and; it will certainly, have .a
Regarding

before .experienced.,' The .American people, who; have
been pretty thoroughly sold upon the idea of "one

have "one nation."

not opposed to a legal minimum rate but
should be substantially below that which

banker. Interest

loans should be substantially greater than
on domestic Government bonds./
.
Naturally, our policy on loan* will have an influence
on our exoort business.
I believe that our export busi*
ness should be gradually reconstructed over a period of:
foreign

to work or not to work

individual.,

come so completely intfer-related thatit is
difficrutlt:
today for any one company to develop a mew material
which will .not influence the activities of many" plants
in many fields.
Because of this inter-dependency, it is clear that maxi¬
mum

handled between a businessman and his

developed; to modify our present legislation to again
make it possible to adopt a simple method of managing
business. Governmental functions should be the main¬
be

(Continued from page 562)

is being hampered because
taking place throughout" the

;•

;

and I believe
be true regarding, banking generally that never
we been in; a • stronger condition finaucially nor
I
; better equipped to serye the legiti-*

I know that in the case of our own. bank
it

have
,

mriteT^mand*;jn*dewriPon;

us.

Allarge ,part of our income con¬
$| the upper hand; .This; in my opinion, is1 a very serious >;
tinues' to come .from United States
a set of procedures and regulations regard¬
picture-to contemplate and only a souiid,! realistic' and1
;
Government securities but we have
ing collective bargaining, which, in my opinion, if not
farsighted program, on the: part of our ; Government, '
been, pleased
to notice In; recent
modified,; will prove to be unworkable. My - reason for
will.bring order out of the;present chaotiq coriditions. ^
•
months a slight increase in the de¬
This country is, unquestionably, in the unique position
taking this position is that manufacturing constitutes a
,
mand for loans. As you know, total
substantial part of our productive economy: Labor usu¬
6f being the strdrigest nation in the world froid a mil-;
loans
of reporting
member banks
ally represents a substantial part of the cost of com¬
itary and short-term economic standpoint.* I; believe,;
increased
$3,260,000,000 in 1945, a
modities. During the period in which this country
grew
therefore, that we must impose sound viewpoints on the
gain of 25%. Our own experience
find* prospered, under the. capitalistic
rest of the world, patterned on the capitalistic system, if
system', a man
with loans was almost identical, the
started in business by negotiating an arrangement with
we want this system of $ociety to survive.
, <
? / f;
gain last year being 24.6%. One en¬
the employee, individually, and compensating each one
To properly rehabilitate the war*torn countries will T
couraging part of the ; Nationwide
in proportion to the prevailing market and in
take years and we should take part, in setting them up proportion
figures was that commercial, indus¬
:*/ tb what he could afford when working in competition.
so that they can rehabilitate themselves. •
i r
!; »
'
trial and agricultural loans were up
F?ch arrangement was an individual proposition, based
I believe that this, country will be > required to! furnish
13%.
We shall strive to see that
i ron the ; knowledge and abiltiy of the manager of the
relief to prevent starvation and complete disintegration-'l
this trend continues until banks gen¬
c
of society in the war^torn countries,; This relief, howdterprise and if he was in a position to sell his product,
erally have regained their rightful
after paying for material, labor, overhead and taxes,
ever/should be kept to the necessities of life arid should
position as the primary source- of
he retained the net re-invest in his business, thereby
be administered with the greatest possible efficiency.
business credit.
"
'
:-v. \ ' "
H. Hiter Harris
providing additional employment and, in this-way, auto¬
We find ourselves again in the position^ of the credv I
As for what we bankers expect
itor nation of the worlds which position we occupied at
matically providing for a method of expansion and in¬
for 1946, the one certainty, in my opinion, is that we
creased compensation.
the end of the firsjk war; however, instead of maintain- v
will have increased operating costs; In the face of that,
Under our Constitution, it was possible for a man to
ing a strong hand and handling the situational on a sound
it now appears that many of maturing obligations of the
Seek other connections if he was not satisfied with the
basis, we allow ourselves to relinquish the influence
that we should rightfully exert as the nation through '>"• United States Government will be refunded with lowemployer's procedures and, if the employer was not sat¬
rate short-term securities and that interest rates gen¬
isfied with the production and attitude of the employee, B which the-war was brought to a successful conclusion. :•
erally will remain low.
The Treasury probably this
I believe, in extending credits to
he could discharge him and replace him with a more
'rftf:'

Country. ;
>We have

foreign

efficient,

man.

countries,

should work out each proposition on Its individual
merits so that we will receive something tangible in

This automatically developed the incen¬

system and built up our economy accordingly.
|
Under the prevailing system, a complicated method

tive

year
new

fd'

will not have to raise any subsantial amount of 'A'
if any at all, through sale of new securities
savings bonds for cash. Deposits in the ag¬ \ :

money,

other than

return—either raw materials or various bases or posses- i
>"'•
gregate may increase slightly, particularly if money in
sions. -Otherwise, we will weaken our own economy
bargaining and fact-finding has been developed which
circulation comes back to the banks, but not a great
is being
through our generosity to other nations rif the wbrld
•J
administered by a substantial; number; of
■change is anticipated.parties who are not directly involved in the successful % over the year. Lend Lease should be liquidated to us: :
It is going ta be difficult to greatly increase the total :'5v
on a sound basis.
It seems to me that the matter of for- - v
operation of the business.
'
1
\
■
:U
v
'
>
?
^Continued on page 566) v.;T
I am, personally, of the opinion that some means must f eign credits is not" any differerit than a credit matter ^
*

•

.Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE,;

Number 4460

mal. >■ There

World Economic Recovery aiStake
In Current Political Decisions

myriad

are

ways

which the Soviet leaders can re¬
serve all economic
plums for Rus¬
sia

without recourse to formal
treaties.:, Moscow has never been
constricted by the procotol of in¬

der

the

Churchill

political disputes around
■ VWhat
is being
decided is, at bottom; whether and
which
European
nations
shall
those

countries.

(Continued from page 563)

retain

economic

autonomy

attaining

the

American

still

zone

and industrial potentials,
proposed treaties in effect
would give Russia total control of
sources

the

10%. .■■:

around

However harsh they may be in
other"respects—arid the accounts

signed in : Moscow established a
joint Russo-Hungarian companyto
develop bauxite, petroleum,
coal,
power
plants,
chemicals
(especially fertilizers) and • other

follow a "soft" course in the mat¬
ter of German, economy.
At the
same time they continue to hold

nomic

line

and

"hard"

eco¬

agricultural

riches;

natural

this endeavor

Hungary's case, the pact

tries.

of their depredations have a bar¬
baric ring—the Russians evidently

the United States to

economic life of those coun¬

the

ma¬

other
ship¬
motor transport and avia¬
Little:"; of economic value

have the support of their exten¬
sive fifth-column among Ameri¬

chinery, electrical goods and
manufacturing enterprises;

can opinion makers.
It now seems
altogether likely that in the near

ping,

future the Soviet half of Germany
will be more prosperous than the

would

non-Soviet half.

The

tion.

volt

in¬

effect will

lies, toward the Russians.
Soviet

purposes

It is not

easy
to
to grasp

are

so easy

are

trade map,

they must first be guaranteed real

riationalirideperidence. That bdrrii
mori-sense proposition holds tfrie
for

immediate neighbors of the
Soviet Union like Poland,
Finlarid
and Bulgaria and for more
distant

countries like
Germany and Aus¬
tria. In any
case, it is not hard to
discern economic motivations un-

sion

The most dangerous area on the
map
now

East,-and here the economic fac¬
tors are fairly obvious. A con¬
trived revolt in Azerbaijan, in
northern Irani, has Virtually de¬
tached

one

integrity had been

pledged

territory,

military

Dardanelles

why the United States and Britain

?%* (Continued

Roosevelt,

on page

Small wonder that businessmen

Hungary were hor¬
td lodge ap¬

accept-;the?-situation so apathet¬
ically.
Having lost Eastern Eu¬

rified and

by a process of appeasement,
We seem: determined to surrender

enslavement with the

in Austria and

Central

Sharp protests by
London gave
the Hungarian and Austrian Gov¬
ernments'the tourage to temporize
arid at this writing, the treaties
have not yet been ratified.
It is
not likely that they will take ef¬
fect dri their present; form*
-

Europe: to the "Soviets
through sheer inepitude.

trol Councils.

both Washington and

To date the most forceful and
Anglo-American inter¬
vention in Stalin's East European
domain has been in connection
effective

with the trade treaties drawn up
by Moscow for Hungary and Aus¬
tria.
That .in itself supports the

suspicion that

hastened

peals against the proposed foreign
Allied Con¬

rope

However,

the

••

•

important, if less obvi¬
than political objectives.

ST, LOUIS, MO

can remain
accessible to other
nations while politically subservi¬
ent to Russia siniply do not know

y.rcJ:
•{'*/

the nature of the totalitarian ani-

**•

;■

\J'\%,r'-"['I-

Europe

economically

Through the device of a fiftyfifty Soviet participation in the
exploitation of all 'natural re¬

Eastern

«■•'.Ay

International Shoe Co.

foreign trade experts who suppose
that

-V*'.

;

and

statesmen

ic purposes

econom

are more

ous,

••

&-3T;

vi./
y'\ ? '%■

'■

*4* '*":r

••<<;**-

COMMERCIAL TRUST CO.
;

OF NEW JERSEY
+

>'•

"Jersey City, New Jersey

•

FINANCIAL STATEMENT
'

at the close of business

•

(

./^a

/december 31.1945
assets
Cash and Due from Banks
*
:U. S. ^vernnient Obligations (All
State! and Municipal Bonds;

$ 17,187,214.72

...

Direct)

84,229,600.28
146,579.51

;

•?GtherJ.Securities12,418,866.79
^Loans and Bills Purchased

Mortgages
Six-Bank: Buildings
Accrued Interest (all current) -———.J
Customers' Acceptances

;

Otherj,Aissets/*.^w-.«^K-r--——

-*■

v'.:.•'-;-r-?-?7 Vr

4,349,877:30
6,401,253.68
1,594,189.83
332,958.83
>
1,900.00

•

■

6,419.14

:V;:
•

•

Surplus

L.,

Cajpital

Undivided Profits
Reserves

"
_

Quarterly Dividend
(15bth

regular Consecutive Dividend 2fe> and

Extra Dividend

2%)

V* ' Acceptances and Guarantees

Shipments of Sulphur to

Time

761,125.07

- ;

.....

War Loan Acc't

118,805,937.49

■

—

ROBERT A. ALTSCIIL'LER,
President, OTTO A. IJEMBECK, President, Fifth
International Fideliiy Insurance Co.
Ward Savings Bank
W. AMES, President,
GEORGE LETTERHOUSE, Vioe.Fres-

JAMES

ldent & TrUst °fficep ' ?

FISIIER ANDERSOV

CounSr^L^
-

John F, Boyle Co.

ROBERT V.

JOSEPH G.

GEORGE
i'K'

KINKEAD, Judge of the
-Circuit Court
^

'ft*
*

'
>

»:.;f

'•/. **vv;.v,
•'

-J

Vr-.K

' I*

*•

^ *' \ ^

\ * f"

•

'-*'•'!» '• -V-

? ■•'*'* +j\'Y.

SHANNON,

Sulphur-consuming industries

as rayon, paper,

t-.t.r

•••'-'••

'■

'.-is.

fertilizer,

octane

President,

Guttenberg Bank & Trust Co.
MARK A. SULLIVAN,

FREEPORT SULPHUR COMPANY

7'-

Counsellor-at-Law

•

v-**." >-,vA

V.vjV.; •i'.<

•

■

-V\...''•X"'?" '

Member- Federal Reserve System-«-

Member'Northern ^Neu> Jersey

v?;

122

EAST

42nd

STREET

Member Federal. Deposit Insurance Corporation
■

■'*

important production year for

/WILLIAM V. TOFFEY, Vice-President
A Secretary
'
friis
bVi-' v/
'
<*"■'' .( '"■, <■ "* \yJ'V\}k

LAIIEY, Retired

s>.

:.-.r

Vice-President,
Co.

^-New Jersey

•

WALLACE PYLE, M.D.

WILLIAM J. FIELD, President

Dry Dock

D^''^

Vice-President,

GCSTAV F. FISCHER,
•Brewer

'^v"

' KENNETH K. McLAREX, The Corpor.

JOHN F.^BOVLE, JR.,

fuel, Synthetic and natural rub¬
ber.
For these and others, now turning from military to
civilian needs, production and stocks are ample to meet :every
anticipated demand.^ ; v.- L
;...
^ ' •
;

$126,668,859.28

record

chemicals, steel, high

;

DIRECTORS

.'"j

such

18,083,925.80
i_

■'"

1946 promises to. be

■

.V.*I, *•.

40,277,590.20

—

•

war industry have beep main¬
heights during the past five years. Today\
peacetime industrial and agricultural needs are replacing the
wartime uses which ended with
V-J Day.

tained

1,900.00

$59,683,296.42

Industry will have a plentiful supply of Sulphur: in 1946
help speed the flow of goods to civilians.

...

Savings
United States

3,400,000.00
3,400,000.00
123,056.96
801,964.83
136,000.00

Demand

$126,668,859.28

Charing House Association

?J;::

:??■'

NEW YORK 17. N. Y.

and.

bases
other

plosive possibilities.
The imme¬
diate targets of the Soviet drive
are
Iran
and
Turkey, but the

Iranian independence

solemnly

of
the

the pressures home.
V7 I
^
The situation is loaded with ex¬

of the richest Persian

and territorial

Meanwhile

humiliating surrenders; Red Army
deployments in the Caucasus and
Bulgarian military concentrations
on Turkey's flank serve
to drive

of international trouble just
is without doubt the Middle

provinces.

their

meeting.

to submit the issue to in¬

Hungarian hands.
The Austrian
trade pact was likewise a fiftyfifty arrangement and equally in¬
clusive. This, indeed, is emerging
as
the typical pattern of Soviet
economic imperialism in areas not
actually annexed to the U, S. S. R.

be to divert the Germans, today
inclined to favor the Western Al¬

grasp.

the world

Russia is pressing Turkey for ces¬

vestments.

European nations
on

ternational discussion.

ternally, as well as "open doors"
in foreign trade for; foreign inr

solely

remain

thus

If the
remain

Stalin

Teheran

Nevertheless, Moscow has refused
to acknowledge its role in the re¬

ternational relations
its ends,

and

memorable

565

567)

THE COMMERCIAL & FINANCIAL CHRONICLE

566

Thursday, January 31, 1946

Business and Finance Speaks Alter the Turn of the Year
ber of their outlets, and it is anticipated that many new¬

As I

You

When^this will develop, however, is contingent

the availability of labor at rates sufficiently stable
to enable, contractors to place bids on the basis of fixed
amounts which will give them a reasonable profit ex¬
pectancy. The experience thus far has been that con¬
tractors are reluctant to bid, principally for the reason
that they are unable to anticpate with any degree ef
certainty the cost of labor which in the construction in¬
dustry is an important item.
There are still shortages existing in
many lines allied
with the construction industry, namely:
lumber, hard¬
ware, plumbing
fixtures, and household appliances.
Many of these shortages can again be directly traced
back to the inability of producers to obtain satisfactory
and sufficient labor.
upon

support the belief that

LESTER E. JACOBI
President, Schenley Distillers Corporation

Ahy effort to analyze the 1946 prospects and outlook
for the distilled spirits industry must, in my estimation,
lead to a seemingly paradoxical conclusion. That is, in
brief, that the difficulties confront¬
ing this industry in effecting read¬
justments following the inevitable
dislocations of the war period are'
more
than ordinarily complex, as
compared with many other indus¬
trial "reconversion" problems, while

important factor in the
of great de¬

at the

and

shortage of cement would
quickly develop. It appears, therefore, that Until such
time as the present labor difficulties are
adjusted and
the labor supply becomes
adequate, the outlook for the
coming year will remain confused and almost unpre¬
a

President, Western Auto Supply Company
The prospects for concerns in our line
of business are
exceedingly good for 1946. Sales volume will reach an i
all-time high record,
In lines of merchandise where

closer to

management
an

area

are

and

except

some

few

isolated

they will not greatly retard
production.

settlements

ing costs

trend

indicated

in the

being negotiated.
substantially higher.

now

are

wage

tilleries will not be able to launch a period of uninter¬
rupted production which would assure adequate whiskey
suply three or four years hence.

dispute

Rentals and build¬
Extensive employee

are

being

distribution field.

widely

Demands for

considered

Currently, distillers

forty hour week will
increase, New York State having just passed a law to
y^this effect; other States will probably follow.
Most retailers in our line
contemplate modernizing
their existing outlets and catching
up on maintenance
work which was deferred during the war
period. These
factors tend
to increase operating costs and reduce
profits.
1
r

cial condition to enter the postwar
the increase in price levels requires

are

expect to see much keener competition.
Most distribution concerns expect to increase the

on a limited

came

;

clarified.
•

The

development.

These considerations can best be under¬
stood in the terms by which all private
industry and
business willmost likely be fatedfor periqrmahce in the
coming years
quality products at reasonable cost,
sustained high levels of employment within the industry,
.

•

banishment wherever possible of any feeling of insecur¬
ity on the part of employees and a convincing contribu¬
tion toa

continually improving American ^standard of

living.
In the field of veteran re-employment alone,

the in¬

dustry has the opportunity to set a striking example of
broad public service which can go far toward enhancing
and
safeguarding favorable public
opinion
earned
through the distillers' important production contribu*
tions to military victory.
Servicemen: are returning to
civilian jobs with the expectation that they will be given
ample chance for recognition and advancement merited
by special training, education and experience gained in
the Armed Forces.* Other opportunities and constructive
assistance must be provided for those of our veterans
who are handicapped as a result of their war service.

In a program which T believe may be regarded as
typical within the industry, our own Company has tried
to establish a sound policy regarding re-employment so
that the veteraacan return to his job with the least

possible delay and be given ihforination and assistance
he may need it.

our

contacts with employees not

yet discharged from the Armed Forces, our first aim is
to set the serviceman's mind "at ease" both for the pres¬
ent and future when he will be

returning to civilian life.

Early in the war/ liberal military benefits were estab¬
lished for employees or for the families of employees
gone to war and these benefits are, of course, being con¬
tinued.
With the occupation of Japan, over 1,500 Schen¬

ley employees serving in uniform both at home and
abroad were given detailed infonnation on both Govern¬
ment and Company facilities to speed and facilitate their
return
to civilian status
with every protection and
''

benefit.

The Company's program

for veterans includes special

Benefit

benefits under the Employees' Retirement and
•Plan for

providing a comprehensive form of social secur¬
ity. Time spent in military service counts as time spent
with the Company in respect to the Plan, which provides
retirement income paid for entirely by the • Company,
plus hospitalization, surgical, medical, accident and sick¬
ness benefits and permanent life insurance coverage on
a contributory basis.
It is my earnest hope that enlightened planning in all
phases of the distilled spirits industry will produce a
general program advancing the manufacturers and dis¬
tributors of alcoholic beverages to first rank in the

whole, broad field of employer-employee

relations.

position of leadership in this field, achieve^ both through
inter-company programs and active participation in civic
and community projects, will undoubtedly assure the
unparalleled growth and service within the industry
which I regard as the not-tb-be-missed opportunity of
the postwar period.
MAXEY TARMAN
President; General Shoe Corporation
:

I look for

production in the shoe industry for 1946 to

record breaking year with pairage for

the year

running between 550 and 600 million pairs.
Supplies
of raw materials will be tight but should be sufficient
to take care of this greatly increased
production..; However, if price con¬

trols and international hide distribu¬
tion controls are continued after

June

1946, then the supply situation will If
'■> be
more
difficult and production m
will suffer.,

Employment Mn : the

■

^••

industry

5
'■-'if.

picking up and will probably con¬
tinue to increase back to levels that
the industry maintained before the m
war as fast as people are available.!
The industry could use perhaps 15%
more employees.than it now.has if
people were available, • <
'
•

originally.

supply of mature whiskey during the next four

our;

most other industries at present, there is a brighter side
in considerations affecting its long term welfare and

month-

existing acute shortage of acceptable white
whiskey storage and aging.
As a direct result of this scarcity, it is considered doubt¬
ful that the industry will be able to
put away much
more than 60,000,000 gallons of
whiskey for aging this
year, as contrasted with production of more than 135,000,000 gallons in 1941, even if the grain picture is

industry is confronted with
protracted problems of reconversion, not common to

Inventories

of finished

shoes

are

extremely low level, both in
the hands of manufacturers and re¬
tailers.
Current demand is absorb¬

oak cooperage necessary for

num¬

operating

grain

period, even though
comparatively more

merchandise production

are

years.

Meantime, although

outlook is the

may
;

during the next few

Another factor complicating the
industry's production

;

in sound finan¬

increases and the supply comes nearer to the demand

rums,

grain supply—of which small percentage at least onethird is recovered .and processed in the form of
highprotein by-product feeds for livestock and poultry and
returned to farm areas whence the

working capital than was necessary in prewar days.
Competitive conditions will not be too severe in the
early part of the year, but

hand, there is no reason to expect that
beverages., such as gin, domestic wines,
brandies, cordials, and liqueurs, will be scarce

tion, since the conclusion of the war alcohol program in
August, 1945, thus has been limited to approximately 7Vz
to 10 days of distillery
operation per month.
It seems
worth noting, in this
respect, that the industry - nor¬
mally uses considerably less than 1% of the nation's total

Generally, distribution businesses

On the other

other alcoholic

produc¬

the

to-month basis, with
whiskey-making schedules depend¬
ent on government grain allocations.
Beverage

training programs are the order of the. day.
Pension
plans, group insurance and hospitalization benefits for
employees

per year of

urgently required for synthetic

production. The obvious
corollary, of course, is that until there is an adequate
flow of grain and other raw
materials, the country's dis¬

the

few months ago was so

and other urgent
military and industrial uses,
lack of sufficient grain has
delayed the resumption of
full-scale
beverage spirits

market and

with

more years.
be explained that the "reconversion"

gallons

For

rubber

even

line

four

.1945 will
ready for marketing as a matured and properly
aged beverage until 1049, and whiskey that is put into
barrels this year will not be
fully matured until 1950.
Moreover, while there no longer is need for the bever¬
age distilling plants* record output of war
alcohol, which

a record
year in our line of busithough available supplies will probably fall
short of the demand.
Distribution costs-will be higher.
Wages will increase

can

not be

Unemployment is less than anticipated and the recon¬
program is moving along with less
dislocation
than expected.
Most indications point to a
very good
ness,

maintained only

cause "age"—a number of
years of aging, in fact—is
essential before the distillers'
product is released for dis¬
tribution at the consumer level.
For example, much of
the whiskey that was
produced in the Fall of

version

consumer

was

period for the beverage distilling industry will neces¬
sarily be longer than for numerous other industries be¬

agree¬

items

•,

Basically, it

creating prob¬
retailers,
gradually ironed out

Hutching?/

levels for three

that

lems for manufacturers and
but this will be

alcohol for the govern¬

no possibility that this war-imposed sup¬
ply situation can be corrected in 1946. In fact, we can¬
not realistically
anticipate a return to normal inventory

ment, with salary increases of be¬
tween 15 to 20%. It
may be expected
that the bulk of strikes
will occur
in the early part of the
year and the
labor situation will then
improve.
Price ceilings are

Lester

war

unfortunately,

coming

of general

exclusively to the manufac¬

means of withdrawls from stead¬
ily diminishing prerwar whiskey, reserves. While re¬
sumed beverage spirits
distilling operations have been
underway on a limited scale since last Sept. 1, there is,

Labor unrest, is somewhat retardand

new

to the consumer

Lester E. Jacobi
v

items, not in production during the
war,
such
as
radios, refrigerators
and washing machines, will be
pro¬
duced iri substantial quantities.
'

labor

ture of

1945, there will be very sub¬
1946, while new

reconversion, but indications

afforded

ment, distribution of beverage spirits

stantial increases in

are

almost

avail¬

were

time beverage producers

opportunity for growth,
development and service.
Reflecting the wartime dislocation
of the industry most severely is the
shortage of aged and aging whiskies.
For nearly three years, while pro¬
duction facilities of all
registered
beverage distilleries were devoted

LESTER HUTCHINGS

only limited quantities

same

distributors

unusual

dictable.

able in

probably smaller mark-ups,

this, competition will force

time, there is every reason

important

seriously affect 1946, but will be an important
subsequent years.
With higher costs and probably smaller mark-ups,
increased volume is essential to profitable operation and
to obtain this, competition will force more and better
services to the public.
I >
Although the writer anticipates a record year in sales
volume, added costs and competitive conditions will not
permit earnings to increase proportionately. The eli¬
mination o fthe excess profits tax will undoubtedly help
the earnings picture ahd profits should be substantially
better than have been experienced in recent years.

of the United States Govern¬

factor in

taking
shape
within
practically every state in the union, involving roads,
bridges, water supply, conservation work, and flood con¬
trol. Much of this is sponsored by the states; other work

The question of labor is

will not

are

cement industry also, and should a
period
mand develop within a short

warehduses of

whiskies to the fullest advantage.

and

more and better
services to the public.
;
Although the writer anticipates a record year in sales
volume, added costs and competitive conditions will not
pqrmit earnings to increase proportionately. The elimi¬
nation of the excess profits tax will undoubtedly help
the earnings picture and profits should be
substantially
better than have been experienced in. recent years,
always characterized' the retail distribution field.
This

President, Lone Star Cement Corporation
can
well appreciate how difficult it is at the
present moment to make an accurate estimate of condi¬
tions for any future period. The general labor situation
is so badly, confused as to make any intelligent estimate
extremely difficult.
So far as the cement industry is concerned, there is
without question a period of very heavy*demand in the
making. When this will develop, however, is dependent
on many factors. The demand
for Portland cement is
increasing, and if the labor situation improves in the
very near future, the demand is likely to develop within
a period of a few months.
.

ment.

from

increased volume is esential to profitable operation and

ROGER A. HUMMEL V

the jurisdiction

als

to obtain

seriously affect 1946, but will be

With higher costs

is under

it therefore appears, must consist of the gallonage
hand in
warehouses, minus the losses which will

occur through normal
evaporation and leakage over a
period of many months.
This will permit .net withdraw¬

factor in subsequent years,

ings.

programs

will enter

approximately 52,OpO,000 tax
whiskey during the next four years.
comparison, 83,000,000 tax gallons were withdrawn
in 1941 to supply the "normal"
market of that year,
However, the total supply of whiskey available to the
trade; will be adequate to meet the demand through the
increasing popularity of spirit blends, which has enabled
the industry to use the
dwindling reserves of aged

will not

now see

cial banks for :1946 may

Construction

men,

production of badly needed consumer
it, operating earnings of commer¬
not be greater than 1945 earn¬

full

allows

goods.

now on

discharged service

Cooperatives will expand in the distribution field
and there is a tendency for independent. retailers to
form buying or service combines.
These factors indicate
a
return of the keen competitive condition that has
always characterized the retail distribution field. This

However, hanks generally are hopeful of obtaining a
volume of consumer loans when at last labor is appeased
and

years,

comers, principally
this field.'

(Continued from page 564) - '
as a large part of the year will be a
transition period from war to peace.
As demand for
commercial credit develops, it will be offset to a large
extent by the payment of loans made for war purposes.

volume of loans

means a

Jarman

ing shoes as fast as they are shipped
retailers, but this very condition
of low inventories with the retailers

continued demand even though there should be

(Continued on page 568)"

*""

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number: 4460

of peace in the Pacific—and a

World Economic Recavieiy at Stake
In Current Political Decisions
,

*/1>

J\'V

"v J

<»

rf* >?*''

-n

;

(Continued from page 565)

irig to impose its economic hegem?
ony over Manchuria. The Amer¬

Middle

keystone of Great
Britain's world structure will have

powers,

been destroyed.

the

State, John Hay,
addressed himself to all interested
ican Secretary of

East

merely,

which has

to Britain's life line—but to Brit¬

;

Turkey

market

inevitably follow.

needed for strengthening the Im¬

perial Government and maintain¬
ing
the integrity of China,
in
which it believes the whole West¬
ern World alike is concerned."

interests

air

Addressing both House? of Con-,
on- Nov. 18, 1943, Cordell
seven Turnesa
then Secretary of State,
Brothers, who
drew a roseate picture of the
when

come

♦

need for

there will

longer be
spheres of influence, for

any other
special arrangements
through which, in the unhappy
past, the * nations strove to safe¬
guard their security and to pro¬
mote their interests."

Those

words

sound

golf

the

ment, is

1938,
recently
honorably dis¬
charged from

an,

Vice

the

en¬
a

first

recon¬

was

Corporation,

formerly

Differential

resides

J at

White Plains, New York with his

Wiiliam P. Turnesa

peace-time

wife and two children. He intends

grade Lieu-

to resume his golf career after a

long layoff, and expects to partici¬

—some open, some

pate at the next amateur tourna¬
ment which is to be held at Bal-

tusrol, New Jersey in September,
1946.

The Tsar's reply was vague
and evasive. History in 1946 seems
curiously
reminiscent.
Russian
dominance in Manchuria—the fear

implications of that struggle
the

who

President

Wheel

was

■»

Mr, Turnesa,

promoted
man

preparing

now

products.

Navy

where he

listed

war

manufacture

version program for its

the United

from

many

different types of fighting equip¬

was

utterly

its

program

amateur

title

tragic in the context of the reality
of this period.
The carving of
spheres
of
influence
proceeds
more lustily, more ruthlessly, with
less consideration of the rights of
the weak, than ever before in

won

the

States

commended

its active contribution to the

clubs

who

war was

divisions of the Armed Forces for

number

and

alliances, for balance of power,

•

peoples of other countries

*.v'r

"Soft Tone" insulation.

Pressurelube, Inc., which during

record

course

He told America

been achieved.

holds;

victory has

pressure

Woodruff

guns,

extinguishers, Everready hy¬

ment and

gress

Hull,

grease

draulic jacks and greasing equip¬

Mr. Turnesa,
of the famous

supervise

operated equipment, "All-Out"

fire

rector of Sales.

will

sions, including the high
portable

Di¬

Turnesa

Pressurelube's various.sales divi¬

William P.

Turnesa

Mr.

ciple.

for

balance

not

the

conflict, but they are minor when
seen against the titanic
struggle
between Russia and Britain and
economic

eco¬

the

involved

them.

„

curity, it aims at the conquest of
economic empire, chiefly val¬
uable for its vast oil deposits.
also

conceal

disguised—are
being worked out everywhere..
The "unhappy past" seems, if
An "open market for all the modern times. So far as the scale
anything, cheerful by comparison
world's commerce" was the point is
concerned, there has rarely
with the unhappier present, Noth¬
of the pronouncement.
Of the been such feverish
grabbing. Al¬ ing is gained, by denying or blur¬
governments addressed, only the
liances and special arrangements ring this truth.
Russian failed to accept this prin¬

are

com¬

hasten united action of
Peking to promote
so greatly

thereby

combined can fail to be impressed
with these possibilities. However
the Russian push
may be disguised
with claims based on military se¬

region

world's

remove

administrative reforms

greater than the rest of the world

oil

open

the powers at

Only those willing to look on
misgivings at the crea¬
tion of a Soviet economic sphere

American

dangerous sources
international
irritation,
and

merce,

the

all

for

there

Jt»

Sjt

that:

retain

reason

Pownall.

Pressurelube, Inc., through its
Chairman, Philip M. Carter, and
President, E. Richard Bagarozy,
announced
the
appointment of

his last 18 months

the staff of Admiral Charles A.

exclude other nations from trade
and investment.

and the

same

Open Door to Chinese
opportunities' would

world

hopes

At the

nomic

be prejudiced
exclusive treatment by
the
controlling powers
within their
respective 'spheres
of
influence'
in
China, and it

without

was

through
any
of

Stalin unquestionably

Africa would

known as

to be

Open

broken.

sufficiently in evidence.

have

its citizens may not

into

quies¬
has
the means and the urge to extend
Russian influence into Afghanistan, Iraq, Syria; Palestine, Saudi
Arabia, in all of which places So¬
viet political agents have been ex¬
ceedingly busy for some time.
Repercussions in India arid North
cence,

are

"It is the sincere desire of my
Government that the interests of

Should he succeed' in

intimidating

come

view,

Door policy,
summed up iri these words:

The threat is not
the pat phrase has it;

ain's life.

Russia included. His

time American economic interests

tenant,

Dir. at Pressurelube

nations in the event the peace is
once

seWing

Turnesa Now Sales

lar of strength for the democratic

larger target beyond them is the
British Empire.
Should Iran fall
under Russian dominion,: should
Turkey be forced to: yield, • the

pil¬

567

that it may become an exclusive
area—is again the most alarming

the

Whole globe.

economic

factor

litical surface.

In China the American stake is

under

the

po¬

The present diplo¬

more apparent.
Under the com¬
plexities of the civil struggle and

matic maneuvering is concerned
chiefly with the fear that the Chi¬

the

nese

Communists may establish a
special Soviet sphere in North
China, precisely where the eco¬

international tensions is the

American determination to pro¬
tect the Open Door principle
w

h ich

Government

our

nounced for China in 1899.

nomic

pro¬

vitals

the

country

are

located.

Wash¬

ington at that time sought no spe¬
America certainly would like to
cial privileges, at a time when all see China united and on the road
nations were grabbing spheres in to democratic government. These
China.
It; sought rather? to- put are in themselves highly desir¬
an end to the
able ends, if A democratic China
grabbing.
Russia at theitime was attempt- i would tend to become a bulwark

SERVING
MANY MASTERS

REALLY
You

Meat

packers are required to

serve

not one, not two,

interested chiefly in quality
and low prices overlook the

but

four masters:
(1) They must be the mar¬
keting agents for livestock
producers,, (2) They, must be
buying agents and manufac¬
turers for consumers,
(3)
They must provide satisfac¬
tory jobs, steady employ¬
ment

and "Social

problems inherent in buying
prices which will encour-

return

the

in-

In serving

these.four

marketing, overlook the
problems inherent in main¬
taining ■ efficient operating
and sales organizations and
in meeting* the price and
quality demands of a very
exacting consuming public.
No packer, however, can

mas¬

ters, v:there are these three

requisites:
must

(1)

Livestock

obtained

ade¬

quate amount and at prices
which bear a definite rela¬

tionship to the prices of the
•

moting company's products and services.

interested chiefly in prof¬
itable prices and ease in

vested in it.
v

11 Increase the confidence of the stockholder in

finished products, (2) An op¬

erating personnel, competent V;
to do a good job in a highly
competitive field, must be
built up and maintained,
(3) Sales outlets and an effi¬
cient sales organization must
be developed.
Occasionally, consumers

remain in business unless he
meets

all

three

requisites.
Company has
succeeded in meeting these
requirements for jthreefourths of a century and that
is why Armour and Company
has
constantly progressed
and has constantly increased
its capacity to serve pro¬
Armour and

ducers and consumers,'

■.

2v Be a mean? of attracting
since

what you stand for.

Enable your company to

shareholders,

when

advisers serving potential investors rely heavily
on

your

obtain better terms

undertaking financing, either for

pansion, refunding

official communique-your annual report

or,

in the

ex¬

of closely hel.4

case

corporations, for partial sale of ownership.

We have been privileged to assist in the preparation
known corporations, both large and small. Out of

of the annual reports of nationally

this experience and from oiir back¬

ground in the field of finance and public relations, we can create for you a truly effec¬
tive report—one that will be not

the

significant phase of

your

merely

an array

of figures but one that will emphasize

operations—one which will implement

your every

day

efforts and be your corporate show window.

We would welcome the
annual report

opportunity of demonstrating how we can make your

for 1945 do justice to

your company

and its management. May we sug¬

gest a preliminary discussion now? No obligation is entailed.

ALBERT

FRANK-GUENTHER

LAW

INCORPORATED

Advertising and Public Relations
131 Cedar Street, New
aosroN

^ARMOUR

new

banks, rating agencies and investment

President

3 Afford you an opportunity, of telling what
you have accomplished, what you plan am}

the management and interest him in pro¬

ers

fair

money

attractively designed, it should:

organization.
Also occasionally, produc¬

Security''

earn a

gain many definite and tangible advantages for your corporation by publish*

annual report that will be read and understood, Properly conceived and

age livestock production, and
in maintaining an efficient

(4) They ipust conduct their
so as

can

YOU?

FOR

for their workers, and .finally

business

ing

and Company

PHILADELPHIA

York 6

CHICAGO

SAN FRANCISCO

Business and Finance
(Continued from page 566)
reduction in the takings of shoes from the
-

some

Speaks^/Aiter the Tu*n of the Year

-considerably heavier export demand for the .United
prepared by experts, containing descriptive booklets giv~j
States mines///■/:
ing the background and history of the records and the
O. J. LACY
artists,; One of the; most important functions of a
*''v>
■/
y'-W^ t
progressive record company is not to- be caught napping
President, California-Western States Life Insurance Co,
when emphasis on styles change in popular trends
Investing problems of/life/insurance companies are
Of utmost significance is the fact
t£at most
|" • becoming steadily more acute. 1 Continuing;; low yields
radios will be equipped with phonographs. LVT938, only
oii bonds, coupled with the end: 6f the big Government:
about 60,000- combination radio-phonograph sets were
war-loan drives, will force more life. /.;//
S

retailers

themselves.

*",lv;

Chairman of Executive Committee,

Buffalo Niagara

Corporation

Electric

■

The prospects for 1946 for the power business in Western New York are very. good.
.

•

upori the expansion and pros¬
perity of all other businesses in the
territory served.'

insurance money- into mortgage loans
and

Will

be; 'far in excess of7 the 1941 total. The production
plans of coin machine manufacturers also call for ex¬
tensive expansion—a proof of the great increase in the

lem of. the

success

phonograph record industry in 1946 will be
its products.

for

Development

business in this region

view to

ascertaining

encouraging.

Since V-J

looks

now

even

maintain

•

than the estimates indicated in 1944.

Negotiations for taking over all
large war plants in the area
for postwar use have either been
the

concluded

are

;well under

way.

plans f?,r expansion -of other plants

Col. William Kelly

well

are

and construction

along

toward

completion

cquld cause a serious recession in business that would
materially curtail the

the strikes in the motor industry would have a similar

use

A continuation of

power.

normally
services available /
wil be S7 billion.
It is a stupendous >
inflationary sum.
It will be ab¬
O. X Lacy
sorbed in Savings/Banks, Govern*
ment Bonds, Life Insprance, or plain
darn fool inflationary spending, for which there will be
ho adequate return. How much of this we divert to the'

purchase of life insurance will depend upon the vision
of life insurance field men and women./ I
sincerely hope they win the Battle of. Inflationary Gap.
and industry

MILTON S/LENNAKD
'

* A

£4,«.,'/»•;

«-t

„*.* i

it*

•

Corporation
During the war we were engaged in the production of
magnesium powder.Our investigation has shown that the
magnesium industry - .should be one of the most im¬
portant of the American industries
Vice-President National Magnesium

automobiles,

i.a

involving installment fi¬
developed during 1946. Our enthu¬
Even with; greatly in¬
siasm for the possibilities of metallic
competition, most units oper¬
magnesium is. reflected in our will¬
ating in the field would seem likely,
ingness to undertake an extensive
in time, to equal or surpass the pre¬
program of plant expansion which
war
Maxwell C. Kinsr
average annual volume of loans. /
will enable us to extrude, die cast,
From the viewpoint of earnings,;:
permanent mold, cast and possibly
however, the volume of Joans made is not as important
roll, and forge magnesium.
as the average balance outstanding during the year. Most
Magnesium has a definite place on
of the retail paper acquired at present is subject to
the
list
of
engineering materials.
"Regulation W" of the Federal Reserve Board which reThe
fact
that it
is
the lightest
quires a minimum down payment of one-third and limits
structural metal known indicates its
the term to a maximum of 15 months. If this regulation :
use wherever the saving of weight
is continued in force and ^applied to loans on new auto¬
is important/
.
'
'
mobiles, a much greater volume of loans would be >
The huge backlog of transporta¬
needed to attain the pre-war level of outstandings. This
tion equipment, high speed recipro¬
is but one of the many government regulations, subject
cating machinery and household ap¬
to revision, that will have an unpredictable influence on
pliances is bound to have a positive
future operations.
/
effect on the increased consumption
Finance companies, facing the most severe competitive
of magnesium metal.
Milton S. Leonard
pressure, already have announced substantially reduced
It is our hope to play a part in the
rate structures. The annual per cent of interest and dis¬
development for the use of magnesium.
count charges to net receivables promises to be much
lower than in pre-war years.
This lowered income on
F. L. LIPMAN
/service rendered cannot be offset by cost reductions;
Chairman of Board of: Wells Fargo
and Union
rather, costs per retail note handled have; steadily gained: /
•Trust Co.* San Francisco (see page 570).
7
v
/ V /
in line with increased Wage payments and advances in
other operating costs.
Expenses are additionally aiSIDNEY MAESTRE
i
/fected, in the early post-war .period, by the necessity* of
President, Mississippi Valley Trust Co.
expanding off ice and field4 personnel to handle properly
the anticipated increase .in installment business/ Loss / /
1946.! will probably rbe ;ihe 'first of a series of years in
ratios .are -expected to remain low in view of the gen- • which business/ Industry and finance will strive, to pd?//
erally' favbrable business conditions that should prevail - just to the ~ new world growing out < of -tile!' .changes!
in the early post-war years.
brought about: by the/war; Not* only/

only disturbing factor in the situation is the threat
A protracted strike in the steel industry

;

sales

difference.

the

and

nancing.

of; strikes.
?

of net

that

income

creased

1946.
The

now.

priced goods and

other items

only about 2% since the end of the war.
If contemplated expansions are carried out on schedule, this re¬
duction should be more than recovered by the middle of

ratio

reasonable

are

calculated

between

houses, radios, home furnishings and

The power load in Western New York has fallen off
;

for

levels

of them has actually started.

on some

earnings to sales is the real chal¬
lenge confronting: managements /in/<
the consumer goods and allied lines'
during the present year.
// The tremendous replacement de^mand for goods built up during the
war
years
and additional demand
created
by larger national income
and a higher standard of living for
the average family assure new high

Day;

favorable

have

In connection with the present

We: haye rechecked the situation and

California

position and prospects
and of other f in the field of time sales financing, our company is look-:/
in 1944 with i ing forward to a greatly increased volume of finance
business accompanied by a sharp re¬
the probable
duction in unit profit margins.
in the " first
To

as
1946. The results of this survey were

very

business i never 'were

To me it//
appeal's to be The-Year-Of-Oppor-■f:
tunity. For instance, in the 11 west- /
ern states in
which we Operate, we

MAXWELL C. KING
President, Pacific Finance Corporation of

Erie

employment " situation
postwar- year, which was taken
'

'bright as/they

.County, NeW York, I supervised 'ii/
survey/of. all industry

competition
corollary to

for/new

not to increase but to meet the demand for

'As Chairman of the Committee for
Economic

industrial

financing, where the
already keen;
A
steadily declining in-/:
terest yields is the lowering of re- /
serve
requirements and raising of /
demand: for records and also a'means of further increas- ? the
price at which life insurance can .
ing that demand. : • :
I'
' • /// be sold.
These various factors add up to this: the No. 1 prob¬
On the 'other hand, the prospects '
■

service which depends for its

The power business is a

try throughout the year.
probably also continue to increase.
Operating profits are expected to decline. The reduc¬
tion in taxes may offset this vin the showing of net
profit, but the operating outlook from a financial standsold; in 1941, the, last year in which their manufacture
point has some very serious problems for 1946,' was permitted, total 'sales approximated , 1,750,000.; The
makers of these sets expect that this year's production

iridus-/
Other costs of operation Will

Wages will probably continue to increase in the

Thursday, January 31,;1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

£563

effect, but they will affect this area less seriously than
;

would a steel strike.
JACK KAPP
••'•/.

••

-V '"•.•'•"-President, Decca Records, Inc.

The phonograph record

industry has entered the postwar era with no reconversion problem to- retard the
resumption of, full-scale production. It faces no shortages
of essential materials.
With
■
the return of former employees from

I
,

I the

armed

forces

-•

supplement

present personnel, the-industry will

| have

workers skilled in the

art of record manufacture than ever

| before.

■

j; /'.Yet despite these favorable proI auction factors, so great is the pent- /
up demand for recorded entertaini ment, there is little likelihood that (
| the supply, of records can keep pace

that

with

/ several

| ahead.

•

demand

1946

that

lie

immediately

years

Based

the

for

industry's

\ known
manufacturing, capacity at
present and a study of Decca's own

.
■

In summary, while the volume of

time!

sales financing/

\ production schedules.

I should say •
! that unit manufacture ought to .ap-v„
V proximate 225 million this year.

I'. What this means in increased proi ductioii cah be appreciated best per>
.f

may reach record

riod, it cannot: be assumed that net
I

Jack

million units. In 1941, the total was
approximately: 100
i million, and in 1945, the fourth war year, it amounted to
1Kn
about 150 million.
There

was

time not

outlook for all these is good

be very

created

Music,
■

„

however,

remains the basic medium

corded entertainment.

of reThe younger generation is learn-

iireir-faTorite

bands- and

§f

singers "through "album

States has not enjoyed

the
a

;

time.

ultimately

sub-:
,

will feel the impact of these,
forces. • • •/> /////■ /-////://///•'/)
financial

relation¬

Monetary

Fund,

and interna¬
will be en¬

Sidney

Maestre

Bank.// /;

loan;will serve to relax
restrictions and the World Trade
Conference to be held later in the year may make fur¬
ther contributions in this direction '
Domestically, finance and banking will be confronted
The British

large

somewhat world trade

Other

but

part of the American ecoriT

couraged by the International

by an expanding volume of consumer credit/ The actual
will depend," of course, on the rapidity with

amount

which

products are manufactured. Some expansion; in.
is ill prospect but the reserves of cash
by business enter¬

loans to business

tremely short of production and with
their very high costs will not be a
factor in foreign markets in compe¬
some

stantial

the

from the Solid Fuels Administration
for -War.
English mines are ex¬

for

others

than

•_

tional capital investment

The war has changed this and
extremely heavy demand for ex¬
port coal is now here, most of which
is being supplied under directives

will have to be adapted tq;
peacetime uses. Some of these ad¬
justments'' will require more time
• war

International

tition with

/the

ships will be influenced during the
coming yea? by the organization of-

coal.

coal

adjust to many new domestic con-,

new

United

very

which)

organizations

influence/international trade
and commerce but it will also have

omy

and

marketable securities built up

prises during the war will-probably be utilized rather*
resorting to borrowed funds/ Housing loans will
unquestionably increase, and new business enterprises
will probably require a larger volume of funds.
This
will be especially true of loans made to veterans under

than
Frank F. Kolbe

producing areas in Europe are
slowly getting back into production but cannot hope to
supply their local demands and particioate in any export
sets,:.- tonnage for at least the next 12 months./This means~a.

1 ing about style changes in music; the presentation of
-

years,

;;

will

ditions.' Likewise, the technical' and
discoveries
produced/by

high.

recent

international

scientific

for the next year and con-

proportion of the foreign markets

by superb background music; Broadway shows /
Hollywood movies, with their original casts; his-

/;;•/// toric speeches interpreted by stars of the entertainment
World; children's records that educate as they enter/ tain; interpretations of literary classics by outstanding
■///// • actors; grouping of leading artists on the same record,
,.::'//Z;V and other significant innovations that constitute a radi¬
cal departure from the limits which the industry once
:/ /,/
set for itself.
'
'
./ ./ . . •
'■■ ///

Until

will business be confronted by new/

Strikes in our major
industries now are slowing produc¬
tion but these will eventually be
"straightened out.
The demand will
have the effect of maintaining prices
that will; give f the industry/ a good
return*on its investment.

only has. the popularity of purely musical records

variety of diversified recorded presentation,
/r This includes stories and dramas in which the mood is

-.'V-

Sequently the demand tor coal will

great

and

The three largest, customers for the coal industry: are
the steel, -railroad and electric power industries.
The

increased, but-the public has been encouraged to expect I
a

buying records in order to play
phonographs, most people now buy phonographs in or¬
der to play records. •
;•* - / ;*

will ortnol or exceed pre-war levels.
equal

President, The United Electric Coal Companies

;-/' ';/./^Gxtehtrinstead'/Of

t(»

tirilT

;

•

Not

earnings necessarily,

FRANK F KOLBE

long ago when the making
/.of records -was regarded .merely as an adjunct—a very
necessary "adjunct, to be sure—of the phonograph in-.
:
dustry. Today the' situation is reversed at least to this
.

eariy ipost-war pe-:

Kapp

„.

haps by a comparison with other years. In* the depress
,«inn year 1933
vear
nmrlnftinn
hori
in
sion
*1933, production bad declined; to about 10

heights during the

^(Continued

on page

570)

dustries than

Gov't-Guaranteed Loans to Biitish
(Continued from first page)
Vbe delayed./Now' that all contro-

| versial points

are settled, the Bill
introduced on Jan. 23."Many

was

its

provisions have been a
matter of general' knowledge for

time.

sotne

proposed

It is known that the

National.

Investment

Council1 will ' assume
-

the'

role

played by the Capital Issues Com-

mittee#which, I during the last ten

Facilities Act and by the Export
Credits
Guarantee
Department.

companies

The

has only a minority
in their capital.

present

scheme

means

the

granting Of guarantees, for the
erection, extension or conversion
of industrial plants for the pur¬
pose of increasing export trade.
; The capital will actually be pro¬
vided by the Finance for Industry
Corporation and • thej; Industrial
and Commercial Finance Corpo¬
ration.

4 Both corporations were
years or so,; has advised the Jreasr:
created last year, the forinerifor
'^-".{ury -on;; the granting or "refusing
authorization to new issues, The granting large Joans, ttye • latter
.for granting medium-sized loans
f new Council, as its predecessor,
in instances where the existing
will play a purely advisory
role,
•viand will have no authority to take private facilities are not adequate.
They are. privately owned, their
decisions.
'
'
.

As the control of capital issues
is

already practically watertight;

Industry

capital

scribed

having

the

been "Sub¬

banks, insurance

interests.

and

other

The

Bank

Conservative Gov¬

ernment would haye. been.
there is strong resentment

*r;

Dalton will

resources

are

Bank: of

own:

financial

limited,

but

ensure

that Mr.

from

the

Jackson, seventh Presi¬
dinners

for

industries
low interest

marked

the

rates;;:H-':^r®

the

for

Democrats

poses.

from

■

vestment

Bill.

some

Control of In¬
is

Democratic; campaign " for

the

vision

New

York

'4 ■:4;' ,4

Jan. 13

Redfield hi Spokane
SPOKANE, WASH.—Ben Red-

•

impres¬

Con¬

field will open offices in Spokane

gressional seats in the fall elec¬
tion,; and President Truman will

industrial circles that

prove/more liberal in the

ear¬

Washington, stated

A nation-wide; chain -of Jackson
Day dinners on March 23 will
signalize
the
opening
of
the

the Labour Government is likely
to

Celebrate

the

purposes,

Jackson Day March 23

4 It is expected that the proposed
guarantee scheme will go a long
way towards reconciling business

sion of

will

campaign

dispatch

"Times"

provides
all
the
funds: required for approved pur¬

with the

the

anniversary of the 178th birthday

Government

interests

The

commemorate

of Andrew

plentiful capital

the

dent of the United States. Proceeds

somewhat

Nevertheless, its mitigated by the hopes

are

business, the feeling is

of England
participation

board of directors and executive

appointed by,
England,
Their

Committee in Washington.

dinners

against
nationalization and other forms of
Government interference with

financial

While

shortly

to engage in

the

ment business. In the past

heard by

invest¬

was

all groups, over the
radio, from the dinner being ar¬

of capital required by in¬

associated with E. J. Gibson & Co.

ranged by the Democratic Nation¬

pro¬

for many years as an officer.;

jthe new law is not expected to do
/'more - in this sphere than; place
the existing practice on a regular
and permanent legal footing, ..It
-has been understood for some¬
time,- however, that the planning
of investmentsunder 'the new Act
is not meant to be purely
nega¬
tive.
Doubtless, one of the main
Objects of the Act will be to pre¬
the flow

vent

capital in

wanted directions.

ALL

THESE

EXPANDING AMERICAN

SERVED

8Y ST.

REGIS

INDUSTRIES

PAPER COMPANY

un¬

It is the Gov¬

ernment's intention to discourage

the development of lukury trades
V Working
mainly for home con¬

sumption, at • least until Britain's
.

foreign trade has been balanced,
and to prevent a boom in the pro-

emotion of "socially useless";
panies.

com¬

the same • time, the
allowed
it
to
be
understood that its control of the

flow

investment

will

negative.

purely

Official

officially inspired
that

V-'

re ma

not

r,"*/?

.♦

and Publication

d •

•

Government

rJ'

>4.

# V;'•

Papers,

(AuWwoH

<AGRICULTURE

ROCK PRODUCTS

be
or

rks to

effect gave rise to the im¬
the Treasury will

pression that
seek

powers to compel investors
to invest their money in certain

directions.
as.

far

This may be the case
banks

are
concerned,
judging by Mr. Dalton's statement
; during the debate on thef Bank bf
England Bill, that the banks are

Intended to be induced to

agriculture.

These
AUTOMOTIVE

use

There is, however,

the

visages is to
ment

Government

capital

directions

AVIATION
en¬

dustrial firms to issue loans under

It is

terms

raised

unless

which the money could
would be prohibitive,

the

Government
case

Packaging Systems

BUILDING

I
.

-r Government

Under the

try

cotton

St.

Guarantees

such inconsidered by the

new law,

'-stances will be

CHEMICAL

National Investment Council, and

accordance with the public
interest to grant a Government
,

it will make
The

final

and efficient,

PUBLISHING

Bleached and. Unbleached Sulphate (kraft)- for

Regis and other paper mills throughout.the coun<
Sulphite arid Groundwood Pulps for the maritffacture of
Regis Printing, and Publication papers.
'• '44

...

Regis congratulates the basic industries of America on their
to solve the problems of the'
quick change-over from war¬

time

peace-time; production. The expansion- projects: which

Company already has under

are' designed to keep the out¬
put of all its divisions in step with the increasing tempo of

decision

COMMUNICATIONS

It is " understood that Govern-

...

Bag Filling Machines.

>UBUC UTILITIES

the

jrests with theiChan^
f

Multiwall Paper Rags for Construction

, •«

recom-;

|Exehequer.

efforts

fmendation, to - that' effect to the
♦Treasury.

Panelytei, v * the leading laminated structural plastic,serving. ^
Arito>mqtive, Electrical, Radio, Refrigeration, and many other; s
St,

fif that body i? satisfied that it is
•in

^guarantee,

RAILROAD

conversion at St.

thorough re-equipment.

(

Automatic

Woodpulp

|industry which is in bad heed of
|a

operations from forest to the pnished
product, St. Regis makes available to American business

Materials, Fertilizers, Food Products^ Chemicals

inter¬

of the

Regis products manufactured at its nineteen
coast to coast throughout

factories, located from

...

vened.; This is believed td be par¬

ticularly. the

REFRIGERATION

ex¬

pected that it would be imposr
sible for many; industries to raise
all the- capital they needed for
reconstruction, or: at any rate the
be

Lightweight Printing and Publication Papers... for Magazmes,
Catalogs, Directories; and many other Printing purposes ., i ideal
printing qualities
low printing costs.

approved

byiehabling certain in¬

.Government guarantee.

the invest¬

encourage

♦

y-...
With3 integrated
*

What

4":;;

the United States.

question of compelling private
investors, or even companies, to
invest their money against their
wish.

various St,

mills and

assist

■

major industries V.

and their manifold subdivisions

way

"American business in the postwar era*

■■;

PRINTING
;■

Iment guarantees'Will be granted
mainly for the

purpose of encour¬
aging export trade.
In the ab¬
of the proposed - arrange¬
ment, it is feared >; that British
exporting
industries would v be
gravely handicapped during the
early post-war years by-lack of
adequateI financial resources, that
are indispensable in order to en¬

sence

able

them

convert

their

The

tutes

principle involved
an

In ;■> the

REGIS PAPER COMPANY
: >

New York .17: 230 Park
Boltimore 2: 2601

TAGOART CORPORATION

Avenue

O'SullWon Bldg.;

Chicago 1: 230 N. Michigan Ave.
Sah ProncUcb 4: 1

Montgomery St

plant

for- present-day requirements.*

ST.

■

consti-

entirely new departure.
past, "-export trade was

facilitated

by Government guar¬

antees to individual export trans¬

action^ ^ This; was" done between
the

two

wars

Under

the

Trade

FERTILIZER1

PAINT
m

PAPER

-PETROLEUM
m.

;

J&frVMV,* Mutism

THE COMMERCIAL &-FINANCIAL CHRONICLE

570

Thursday, January 31, 1946

Business and Finance Speaks After the Turn of the Year
(Continued from page 568)
the GI
'

own.

The volume of bank deposits will

situation in employment and maintenance of the nation's
purchasing power.
4
•

continue at the pres¬

f ; 'The effect of general strikes within

since there is:;;;
little likelihood that any substantial part of the Gov-7;
ernment debt will be redeemed in 1946. Some shifting "
in its distribution may come about as a result of the?
declining importance of certain areas following; the
curtailment of war production.
' / -,
"
Banking will be greatly influenced by the trend of
business activity in the coming year. Some delays in 7
production may result from shortages of critical raw ;
materials, price controls, and labor difficulties. Although v
many raw materials are now scarce, they probably will
become more plentiful as the year progresses. This is
especially true of building materials. Price controls wills;
probably be relaxed somewhat although Government
ent

/.The

line" but

spiralling

tlement of the

lish a pattern
In

business

means

it is likely that a fairly high level of

Auto-Lite

al¬

of America

Life insurance
sition

at the

good-to-excellent.
.

impossible.

with the

with the Nation in

Postwar San Francisco is sharing

as warmly on one or
other side of the controversies

the

W-

Pe°Ple
other parts of the
countryv4n trade, the dominant fact

UMi

•

I
|

"Inventories have been

is* scarcity of merchandise. Retailers
continue to handle shoddy goods,
when they cannot get better, and
inform us that, the public is beginning to show resistance to sub¬
standard quality, ' but yet all the
goods still being received are being

distributed
What

„
.

/man these two new

distribution.

be considered in

the over-all prospects
business, and (2) the
meas¬

direct stake in almost

phase

of our national

econ¬

omy.

Reaching all-time highs in almost
operating category except that
of interest income from investments,

every

total

life

United
the

completed

war

1939

plants," Mr. Martin continued,

insurance

States
years

$154.6

had

owned

climbed

the

during

from $114 billions in
billions in 1945—up

35%. Reserves to guarantee the pay¬

"and production is gradually reach¬

ment of

policy benefits totalled $38.5
billions, an increase of 49%: over
1939.
During, the six years, Amer¬
ican families received payments under their life insur¬
ance policies amounting
tO| more than $15 billions—$2.68
James

McLain

billions in 1945 alone,

;Of those 1945 payments, death

benefits * totalled $L3. billions, a new peak

; due, in the
plain, to war-deaths,
j
•
* '
7 7Tbe ownership of :Iife insurance protection went up
almost $ljOOG per farpilyj from 1939 to.1945, bringing the.
family-average in the Ufiitecl States to $4,500.... - •. f ^
;..
The death-rate among civilian policyholders was low
in 1945-^ower than in/l944 andvmore favorable^ than; it
had. been in many prewpr years. Relatively few people
borrowed against their i policies during 1945, and sub7 stsfntial repayments were made against loans outstand¬
ing. Early lapses and surrenders of policies (which tend
to increase operating costs) were favorably low in 1945.
Although cash surrender value payments increased
materially after V-J Day, they were at a rate far below
prewar levels. Total surrender values paid to policy7 holders far 1945 were $24a millions, against $732 millions
,

plants.

71 ^'Pressing: civilian needs at iheretfd
.war/pre?
facturing the same thing applies to"; vented us from closing down for reconversion purposes/
the materials to be processed. 7 The ;! Reconversion, in the main, was done- while production
lines were kept in operation to manufacture vitally
general opinion seems to be that
channels

po¬

1946 is

every

without much difficulty.
in retailing is nat- \

(1)

tomers and

An exception to .this, of course, is
production in our battery plants where we are ham¬
pered by a number of contributing faetors.
:
7"Twnmew plants, ?ond at .SharonvUIe** Ohio/an&an*
.other,, a.battery plant at Vincennes, Ind.^ are how Under
construction and should be in operation, in the very near
future. Approximately 2,00flf workers^will> be; heeded: to

excellent

to the. responsibilities of a
service business with 71 million cus¬

ing normal figures.

true

urally true of other operations and

in all

Royce G. Martin

1946 must

American

ures

problems of the availability

extent to which life insurance

manufacturing equipment, man¬
power in the areas in which we opperate and governmental control of
prices. ■:
,,*■/::7';/7;77-;/ -■
7:/^//-' "7

probably feel

occupied

However, the nature, of the service
it" renders makes life-insurance, a
beyond

the effects of strikes and our citizens

whole

terms

it is

long-range business and the outlook

dustry," Mr. Martin said, "we are
locking forward to a gratifying ex¬
pansion in both the original equip¬
ment and replacement fields during
1946. Already we are moving for¬
ward
and are rapidly completing
plans for increased operation. AutoLite's prospects at the present time
are /very
bright.
' ■
«
* v 7
"Generally speaking we are faced

Union

close of 1945 and the outlook for

"Despite the unsettled labor condi¬
of the entire automotive in-

merely hard to predict what is ahead of us:

It is not

JAMES A. McLAIN
President, The Guardian Life Insurance Company

Company,

tions

F.L.LIPMAN
Co., San Francisco

starvation in various; parts of the earth.

of the Board of Directors.

% highest level ever achieved in peacetime.

Trust

war-torn nations are in a position to manufacture their
own
machinery, they will be dependent upon North
America to provide the equipment
necessary to prevent

manufacturer of
automotive electrical equipment; is looking forward to
one of its greatest years in history, according to Royce
G. Martin, president: and Chaii^nstn"
Electric

that national income in 1946 will be at the

post-war years, because the feeding of the nations of
the world will present a difficult
problem, and one
which will require the1 high mechanization of
farming
and a large production of food and
forage. Until the

Auto-Lite Co.
The

present strikes will undoubtedly estab¬

Chairman of the Board, Wells Fargo Bank &

ROYCE G. MARTIN

though certain industries may not operate at capacity.
This

...

'•

The farm-machinery industry is one that is most es¬
sential to the welfare of the world for the. immediate

President and Chairman of Board, The Electric

although set¬

activity will prevail throughout the year

smaller volume of business-than

we experi¬
However, I have great faith in American
industry, and believe by next ;fall7will/begiA a" twoor-three-year era of good business.
y • i ;•/ v.*

paratus are expanding plapt facilities, establishing new
plants, and hiring additional workers in substantially
larger numbers .than, were employed in;the industry
either during the war, or in any time previous, "

for the settlement of future ones.

summary,

enced last year.

the concerns: themselves, which

Manufacturers of electrical distribution and control ap¬

Labor

inflation is less • probable.

labor, the frozen prices, and inability to get sufficient
materials, our company will, no doubt, have to be satis¬
fied with

merely reflect the attitude of the thousands of employers
the industry serves.
•

retreat to a new^-and higherr—"price

troubles will continue throughout the year

of rill

activities

permit increases in prices in order to permit increases in
wages presage a

industrial management to solve; and, with the unrest of

supply industry in general with electrical equipment 'are/
tangible indications4 of confidence', in the future, ■ and

prices of strategic commodities will be
Current decisions by, the Government tp

over

;

any one

control

tain full employment at home.
•
4/7 y
/• •r I believe^ the yearl946 will present many problems for.

key indus¬
try must be considered, however, because our industrial
economy is so intermeshed that a stoppage of one stra¬
tegic industry, or the largest unit, within that industry
can be extremely far reaching.

high level throughout most of the year

maintained.

factoring facilities from two to three times what they
/ were before the war, aiid it will be necessary to sell
more goods in the international market in order to
main¬

on the threshold of extraordinary business and
industrial activity that will bring about a. most favorable

truly

•

new;businesses of their

Bill Of Rights to start
:
s

manu¬

■

„

■

in 3 needed automotive equipment. In many Instances, how¬
ever, we were forced to abandon manufacturing equip¬
F, L* Lipman
spite of government interference,/
ment that had worn out during the hectic days of war
however well meant.
production and are still awaiting new equipment in
order to increase our production/
'J
r
.
F/W# MAGIN
"As a whole/* Mr.* Martin concluded, "Auto-Lite is in
President, Square D Company
an excellent position and intends to take full advantage
Because their products are
of all opportunities afforded and created during 1946."
capital'goods, the demand
these

(

conditions

willv improve

for which

serves

as a

gauge of building and tooling in

almost every other industry in the nation, what
in the order departments of the firms

W. C. MacFARLANE

happens
,,

manufacturing

Power Implement Co.

Now that

There is hardly an industry or field
using electrical
controls, with the exception of the aviation and am-.

industries, forwhich the Immediate activity

and employment outlook; are not

extremely favorable,

are

celebrating

our

were permitted to manufacture
by the Government and for which

materials

could

obtained,

/No. 1 duty of providing;financial protection for policy¬
holders and their families, the life insurance business
has at least five distinct responsibilities. ,;:
I. It must continue to help finance victory with the

our

plants produced substantial quanti¬
ties of

actual shortages

war

products

including

Materials, too, continue to be in short supply.
Excepting delays from these causes, industrial America

:■

rious high-caliber shells, cargo hoists

and

Bofors guns, amphibious

rosters to meet tremendous demands from the
public for
all types of merchandise. Machine tools used in
every

feel that because) many of
products were of a nature
quite foreign to our ordinary manu¬
facturing methods that it has helped
to broaden our
manufacturing ex¬

and distribution manufacturers. / Control equipment is
vital to the process industries. Once under
way, reports

building, in which various control and dis¬

apparatus

forward in every
never

now

in great demands/will

community in the nation to

known before.

Both

commercial

and

perience and to stimulate our or¬
ganization to take advantage of the
many innovations that were intro¬

extent

duced

domestic
/

building, large and 'small, awaits only the availability of
labor and materials. - The

plans"are drawn. In rural

too, electrification of farms
ever

before 4s

construction
to afford

on a

indicated, with farmers planning

now

areas,

much greater scale than
new

while "they are In a financial position

improvements.

into

called in to specify electrical
equipment for new build¬

to believe the nation is

W. C. MacParlane

shops during these

•era

very commonly referred to as the Atomic Age. The
adaptation of many recent achievements of: science has

affected our manufacturing program, has been a
great
challenge to all of our personnel, and I am of the opinion
that scientific processing in the years to come will revo¬
our

methods.

Many manufacturers like ourselves are not only en¬
deavoring to satisfy the national market's demands, but
are laying plans for expanding greatly into international
fields.
- r
-v;7 7 y'.-7%7: 7/777'7|)7:
American industry has increased its productive manu.

ings and plant layouts, lead

our

troublous times. World War II has accelerated: scientific
research to an unbelievable
degree, ushering in a new

lutionize

Backlogs of orders already scheduled for production,
plus the reports from; field representatives who are

these

purchase of Government bonds ($20 billions of U. S.
Government securities^ Over 45 % ofIthe' total assets/of
/U. S. companies, ,are[in life insurance portfolios).
2. It must push with renewed vigor the fight against
runaway inflation (life insurance premium money goes
ta work and stays at work to help keep prices down;
arid living standards up).
3. It must do its part toward postwar progress by the:
sound
financing of industry, /business; and., homebuilding (legislation will be necessary insome states
before a fully effective Job can be done; but life com¬
panies held mortgages to the value of $6.65 billions and
had $10.8 billions invested in the securities of business ;
all

type of industry employ products of the electrical control

new

va¬

winches, Welin davits, fire con¬
trol mechanisms, and many other
items aggregating about $100,000,000.

poised to expand its facilities and to increase personnel

tribution

tariks,

■

material covering some

sixty 7 different

of labor.

indicate,

interpreted from the demand for electrical supplies.,
Every industry, of course, is hampered today by labor
problems— either work stoppages

in 1939.

X^Witir;mofe7pefcple7buymg7fah&7m^

i their policies, the life insurance business has built up a
first peaceful Holi¬ i momentum that can scarcely help butmake l948 a good
day Season in four years, our employees all take pride
in looking back to our contribution to
help hasten the 4 / But td the life insurance busine^s-?-a$ to all Americans
Allied victory# In addition to pro*
• ■ %;^v: 7 fi-4he 4cbmiftg of / peacd brought greater rather than
ducing all the farm machinery which
smaller /obligations and opportunities#/ On top of its

electrical control and distribution equipment is of
par¬
ticular interest to observers.

munition

President and General Manager Minneapolis-Moline

7 and industry at the close of 1945).
;
4; It must raise its personnel to a new peak of effi- J
ciency, in home offices and in the field, to meet the in¬
evitable public demand1 for a maximum of service for 7
7 each dollar of administrative overhead and to hold its '
w- own
against goods and: services so long absent from
the American market (i,t is estimated that the number
of full-time life insurance fieldmen has shrunk at least;
30% since 1940, and this' reduced.organization cannot be
expected to contribute the selling- effort that will be
required in the years immediately ahead). ? ^
^
5. It must give special attention, advice and counsel to
the policyholders who are war veterans—and to its own;
employees who have contributed directly to the war
(Continued on page 572)

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

President Urges

Godwin Director of

S Billion Cutback

Research Service
repeal

President Truman recommended on Jan. 14 that Congress

i.1

$5,021,887,483 in appropriations and contract authorizations, over and
$50,345,409,169 in decisions approved near the end of the
session, the Associated Press reported from Wash¬

above the

last Congressional

Morris
dent

search
16

the appointment,

American

cal

and now recommended
for repeal "will have to be appro¬
priated in subsequent years to
liquidate contract authority still
on

year

the books."

(The gross amount of the Presi¬
recommendations

dent's

was

the

repeal of $5,751,428,483 in approriations and $420,079,000 in con¬
tract authorizations.) >

Inter-American

Dr.

Re¬

Director,
Godwin, Latin

Francis

research

risk in¬

expert

and

formerly Associate Director of the
<"<
'
4. A reduction of $260,068,000. m Armour Research Foundation, Dr.
Maritime Commission appropria¬ Godwin, who recently
completed
tions and repeal of contract au¬ a
15-month
amounting to $420,079,000, both
made possible by revisions of the
maritime program.
vf- •
5. A reduction of $850,000,000
in lend-lease

the

brought;

leading
and

which,

In-1 Dr. Godwin has lived in both the

together

bankers,

U. S. and Latin America, traveled
extensively throughout both con¬
tinents,
and
lectured
in
the

last
in

indus¬

United States

Government officials

topics.

both countries to promote the

technological

economic survey of

for

dustry
one

the

and

Mexican

Foundation,

in¬
was

of the organizers of the Mexi¬

His

Latin American

writings

Latin

American industrial and technical

interchange of technology, parti¬
subjects have appeared in publica¬
cularly in the field of industrial
tions in
both the

relations.

Prior to

Mr. Shipley also stated that Dr.
Godwin

would

leave

for

the

both

the

Mexican

Dr.

A.R.F.

field

in¬

Godwin- headed

(Armour

Research

' technological

Foundation)

organization's field

and

economic survey of Argentine in¬

representatives and to* institute a
field study for one of its

the

vestigations

Cuba and Mexico to confer with
some

Americas.

commission

the

thorizations

Chicago
trialist

Jan.

Conference

Research

October,,

Shipley, Vice-Presi¬

the

amdunfs to $5,021,887,483, because^
of claims against the war
surance fund."
v * ; >

dustrial

Service, announced

$1,149,620,000 of the appropriations
not needed during the current fis¬

can-American

ington./: The President's statement explained that the actual reduc¬
to obligate the government in his recommendations

tion in authority

dustries,

clients.

which

occupied

the

entire year 1942.

appropriations which
said

statement

were

made

repeal, ac¬
the Associated Press,

possible "by Congress in liquida¬
tion of the. program,"

$1,503,971,475 set aside for. civil¬
ian agencies, $1,420,576,472 of War
Department finds and $2,826,880,536 earmarked for the Navy. *
As'
disclosed by the White
House the' major proposed reduc¬

Federal Works Agency appropria¬

Recommended

cording to

for

6. A

were:

tions include:
1. Cutbacks of

appropriations

$1,420,576,472 in

for

the

military

establishment "made posible; by
further reductions in war produc¬
tion requirements."

$2,826,880,536
in appropriations for the Navy,
$1,677,260,536 of which is mainly
the result of cutbacks in procure¬
and

shipbuilding and $1,-

149,620,000
priations
year

representing

not

needed

this

appro¬
fiscal

"but which will have to be

restored

subsequent

y^rs to
liquidate contract authorizations."
'

3. A
in

reduction

of $383,766,000

War

Shipping Administration
appropriations "due to revision
of

military shipping

tions for community facilities

expenses and

STATEMEN-T

CON DITI ON

addition to small items for guard¬

ing

public

and

buildings

THIRD

con¬

structions of

flight strips.
reduction of $2,500,000 in

7. A

reduction

Interior

$1,391,143

As of December 31, 1945

ASSETS
Cash and Due From Banks
United States Government Bonds

defense in the Hawaiian Islands.

for

the

old

War

other

the

'
__$ 28,564,723.79
38,942,559.48
9,241,196.33
3,662,088.22
25,063,946.75

State, County and Municipal Bonds
Corporate Bonds and Securities

9. A reduction of $1,600,000 in
Department of Labor, appropria¬

tions

BANK

TENNESSE-E

Department funds made
to provide for. civilian

Board.
Besides

NATIONAL

NASHVILLE,

Department of Agriculture ap¬
propriations; "for emergency sup¬
plies for use by island posses¬
sions in case of enemy isolation."

available

2. A reduction of

ment

reduction of $3,100,000

Loans arid Discounts-

Labor

Bank

■

Building

670,000.00

Furniture and Fixtures-—

recomenda-

1.00

Other Real Estates—
Income Earned—Not CollectedCustomers Liability-^-Letters of Credit
■Other Assets

tions, the President also proposed
return to the Treasury of $346,890
in corporate funds, which, accord¬
ing to the statement, would be
from three corporations which are
now being liquidated and "which
were part of the Office of Inter-

1.00

321,166.78
20,564.00
91,941.26

Total

$106,578,188.61

—

LIABILITIES

American Affairs."

Capital
Surplus-

__$

—

Undivided Profits—-—
Reserve jfor Taxes- and
JneomeCollected-f-Not Earned-^.
Letters bf

1,000,000.00
-:3,000,000,00

—v..

159,623.97
327,196.52
112,740.89

Credit—20,564.00

.DeposifSf^Demand ^.ii««,-,^^4j*4Xww.u^.—$73,970,099.26 5
1

PREFERENTIAL

•'
•"

•-&,>■-}&,hi)\ y.*r.'O'-Kf
*> <i?
W&&-7 y.5M

■

■--tev.v>;.

•' A

■

Total

COMMISSION

RATES

The San Francisco Stock
tends

sions

Exchange

banks, members of National

the National Association

mv\*

"• sv.'-'.v1

'"'..''ft-11

The preferential
(f;v*

.''"v'i~* 'f

five

(•<

per cent

rate
s

»»*

apv.

,v.

jv'/'-'v'ay

Other Securities;

475,689,16

is
£.

seventy*
yv-

rate

$63,627,602.67

"* V'*"

Total Deposits.................... $298,358,885,01
''
,

j1*

'f' ./;*

•

■

vv-

j*. W

Unearned Discount,

12,113,809.85

request.

............

25,046,693.84■

•»- '

189,095.96

-■

•

Accrued Taxes, Interest, etc

1,081,575.14

Reserve for Dividend Payable Jan 2,1946....;....

Time Collateral loans....;........ 11,899,415.87
Bills Discounted.....
19,433,479.63

■.; Bank Buildings.
Furniture and1 Fixtures

forms will

upon

Deposits!

Deposits................... 234,731,262.34

$246,981,721.18

' XV*t.'f »'*"j\'

Other

12,589,499.01

and

promptly forwarded

liabilities

U. S. Government

commissions.

Demand Loans...

of the public

Complete information

"!]

State, County & Municipal Securities

ptoval by the Exchange.
^

RESOURCES

Cash & Due from Banks..,....... $ 61,606,915.49
U; S. Government Securities....... 185,374,805.69

of Securities

Dealers, upon application to and

--.$106,578,188.61

——

Member Federal Deposit Insurance Corporation

ex¬

"■{

Preferential Hate of Commis-

Securities Exchanges and members of

14,015,295.22;,- r; ^
14,972,668.75 101,958,063.23

War

Acceptances Executed....

:;o

56,379,589.34

less:

...

Acceptances Held in Portfolio.

142,187.50

2,809,543.05

2,751,973.48

•

57,569.57

2,523,341.18

Capital Stock (par value $20.0C)

127,529.69
2,650,870.87

Customers' Liability under Acceptances

57,569.57

Accrued Interest Receivable........'

Surplus.
Undivided Profits

...

5,687,500.00
10,000,000.00
2,335,104.34
18,022,604.34

525,727.46

Other Resources.

74,166.81

Reserve.

1,407,246.72

$319,259,144.24

V/Amfi
> f,'

155 SAN SOME'"- STREET ?

SSpgSt

SAN FKANCISCO 4, CALIFORNIA

Telephone EXbrook 6533

National BanKno Trust Company
.

ESTABLISHED
1858

PHILADELPHIA

MEMBER FE0ERAI DEPOSIT

.INSURANCE CORPORATION

THE COMMERCIAL £• FINANCIAL

572

Thursday, January 31, 1946

CHRONICLE

Speaks Aitei§t

Business aiid rthaiic<e

The history of civilization shows that progress is
■| closely linked with the development of transportation.
possibility of slight increases or > decreases, but with / As we in the aviation industry look to the future, we /
extremely small losses in comparison (with: many years / see our nation facing its greatest opportunities. The new /

#''Jis' (Continued from page 570) < , - v\ ■/ * /
effort—for it has a measurable self-interest in assisting
these servicemen

are

(life insurance men and women
great deal of time andU competent
in all parts of the countiy, notably

contributing

counsel to veterans

connection "

them¬

they re-establish

and women as

in civilian life

selves

with

all

that

bank officers

can

discoveries of science have brought us to the threshold

remember.

of advancement which is the nearest

Service Life Insurance

National

;

y One might summarize by saying that the outlook for
banking in ^946 is for generally steady earnings, with a

„

A. T. MERCIER '/' J

President,

Southern

Pacific Company

PrAlieiare"

responsibilities that present problems. If
Notwithstanding the shortage of labor and materials,
and the record-breaking volume of traffic handled dursolutions are found,(there is little doubt that the growth
of the life insurance business will continue—and that.it
:
+r,
c^,iritv and oros-inS the war, the rail carriers were able , to maintain
will contribute substantially
security and, pios. . ^ properties in a generally good
perrty ot all business and
a| Ani
physical .condition and are in exGEORGE V.

McLAUGHLIN

I believe that com¬
enjoy a moderately prosperous
the term "moderately" advisedly;

/" Barring unforeseen developments,
year

will

banking

mercial

in 1946. I use
.

the
tern of the

1 because

•

A,__

large volume of traffic expected
during the coming years. By their
record-breaking performance during
the war the railroads have proved

that

they,

national

cohimerciai.banHir^;:^Sjrr'

continue

will

country has never re¬

indispensable to

are

safety

gained the earning power which -it
enjoyed in the five or six years pre¬
ceding the stock market crisis in
1929, and I do not see any immediate

prospect' that it will. We may con¬
sider ourselves fortunate if we do as
well in 1946 as we did in 1945, or
even
if the decline in earnings or.
profits is of small proportions.
The outstanding
fact about the
commercial banking position at this
time is that government securities
comprise well over half the assets of
the average * commercial bank and
produce about half of its gross in¬

and

}

began; to fly- arid who through the past tough,; twenty ?.
(years have kept their(faith,; have never faltered in be¬

lieving in aviation's destiny.

J Therer is no reason today to; be. less believing, less
?: optimistic/
Aviatiori shall make our world of tomorrow.
y* There are obstacles of course,; Every hew development.; ■
in the progress of the world has come into being over ;

/The railroads have no reconver¬
sion

problems such as confront many
manufacturing industries, so will be
to concentrate
on
improving

opposition, much of it • bitter and determined. - The avia-

The Southern Pacific,

their service.

the end of the
war has placed orders for more than
$14,000,000 of new freight equipment
(not including its one-half owner¬
A. T. Merder
ship in $12,000,000 of new refrigera¬
tor cars being ordered) and will re¬
establish fast over-night merchandise trains between
metropolitan centers and other distributing areas. Typ¬
ical of the improvements planned in passenger service
is
the
inauguration of the through .Diesel-powered
for

example,

since

I tioh

of government security holdings is, generally
* streamlined Shasta Daylight between Portland and San
; speaking, four or five times as great///
\ as the total amQunt of outstanding ;
As to 1946, the general outlook is encouraging for a
Ceo. V. McLaughiiii
joans> and the interest received on , volume of business considerably higher than; the pre¬
these securities is about double the amount of interest ; war years, although a. decline, compared with the allcome.

The

dollar value

*
.
.k.
Government securities, therefore, dominate the

received
-

loans.k

time peak of the war, naturally cpn be expected as
/result of the' falling off in military traffic^ As soon as
the wage questions have been settled, there should be
a gradually increasing volume of many peape-time commodities such as automobiles, trucks, constmrtjon roa- -

■;

bank¬

ing picture,. With the end of the war and the large-scale,
government financing, which accompanied it, the great

expansion ofgovernment security holdings probably will
come to an end, although there may be some slight in¬

(industry recognizes 7 that > many/problems , face it.

There is

lack of support for continued

research and
during peacetime; there is opposition to
the Federal airports program, without which aviation
a

development

comes to the end of progress; there is the fight for "in¬
tegration." the scheme sponsored by American railroads
to enter the air transport field which they scorned years
ago.

record of public service,
this service in the- heart of: a
fellow citizens; will see it past these

believe that aviation's

and

the, knowledge; of ;

majority of our
obstacles.
Through

due to sales by

unselfishness,-

vigilance,

•

the

and

American love of free enterprise, the aviation industry
will survive; and once
gress to
nation.

past its trials, aviation will pro¬

heights of" usefulness wWf^sUgger
.

thqimagi//-

ROBERT G. MERRICK

President, The Equitable Trust Co. of Baltimore
enter 194g with much

furniture,
w ashing
machines,
refrigerators.
etc., tor which there is a tremendous demand
because of the curtailment or cessation of manufacture

tenuis.,

non-banking holders to the banks
through the open market. Income from interest on gov¬
ernment securities has not kept pace with the expansion
?n fntTi S
"r hecatise rate<? of vield on securities
in tota

crease

that day..

large, controlled and. operated by men who /
have grown with it. Other airlines, like PC A, are being /
built and directed by men who saw a vision when planes

our

/
/

It is, by and

able

••

of what it will mean to the public.

't*. The aviation industry is preparing itself for

dominate the field

transportation.

mass

this day ahead, and

and

economy

"millenium";

Many farseeing eyes have envisioned huge fleets of com¬
mercial planes which will quicken trade, open up vast
new trade areas,, and reduce by many times every day
travel and communication time. ?/'
f'

position to handle efficiently

the

Trust Co., l/;

President, Brooklyn

the

;

cellent

approach thus far

Indispensable to this progress, of
course, is a properly developed and thriving air transport
industry.
'
1 •
/ Many glowing word pictures have been painted '{ of
to

over

Iabor

"At
situation. *At the same time ther.-l.
earn, time, there is
tremendous demand for goods of

••

radios,

nearly all kinds/ Therefore, it seems
logical to think there will be a com-

of these articles during the war. Here in the West we
holdings^.xpec a subsU tial hero
pr0p0rtion 0f thewar will be renew industries.;:
available for bank purchase;have been reduced consid-^
- £ t
inratPd
the
erably-by government policy in the case of new securi.*; J™1™.fiS"whn nmi west to
ties and by the rapidly rising market in the case of older > tamed, and a groat man.
people w o Cc me^west to 0
issues. It therefore appears that there may be a downI2i
l^SJhnw

promise on the labor situation. This
would probably mean higher prices /

for/ finished; goods.
means

This, in turn,:

inflation and it is then:-

ward trend in banking

income from holdings of-govern

in such income due to

;

been

likely that we will have a period of *
so-called

and hospitals the thousands of veterans"
forces brought in daily to the Pacific

armed

(ports; and this military movement, greater since

Y-J Day than at any time
receive our first attention.

the field of consumer credit in 1946. but the effects of

during the war years when it *
proved itself in the greatest test of
all time. It comes of age in the com-:

such expansion on

mercial field in

be felt very much

Virtually every air line in the na- .
tion is expanding rapidly during this
postwar period.
PCA's expansion:

quite low.

age

Most banks

are

planning to expand their activities in

banking earnings probably will not ^
until later years, as it takes time to (
develop a profitable volume of business. As bank service
charges have generally been stabilized on a basis bearing
a close relationship to the cost of rendering service, and ■?
are
competitive in communities where there: is more
than one bank, any great increase in income from this source should not be expected.
as

the possibilities of losses

are

program

banking system appears to be in a much
position than it was at the corresponding stage of
any business cycle in the past. Lessons learned from the
depression and the War have improved lending technique
and policies of most banking institutions, so that losses'
on loans are likely to be very much smaller than those
sustained in the depression period of 10 to 15 years ago
Losses through declining market values of government

C. Bedell Monro

plentiful
and
abundant.
Of
the above is all pure specu-j
lation and none of it may happen

market operations of the Federal Re-.
serve Banks or possibly in other ways. Since the bulk :
of bank holdings of government securities have been
acquired at cost prices which are materially lower than
today's market values, there is a considerable "cushion"
in

market

values

before

imponderables come into
However, I would be

willing

Robert G. Merrick

based"

to
on

steer my ship or ships
the
above
assumption,

keeping, however, a firm hand on the tiller and all »rew
the alert to "come about" or change course if nec-

essary.

•

ROY W. MOORE
President, Canada Dry Ginger Ale, Inc.

Sugar is the principal concern

of the; carbonated bev-

manufacturers at the present time. The end
war did not bring any immediate relief from the
quota amounting to 51 % of 19.41 - % /
consumption. It is forecast that a
erage

of the
ration

nearly

had in

cargo

will, materially reduce (flying time
between the nation's key cities and

anticipated

have

:/The plan does not stop there. This airline already has
order, for 1947 delivery, the big,; fast Martin "202"—the big postwar ship which will carry forty passengers
and fly five miles per hour. With a fleet of 50 of these
planes, PCA looks to a continually growing business.

the

continuation of

increase in
the
industry

rapid

Resented

consumption
experienced
prior to the war. Plans for the ex¬
pansion of production facilities rep-

the

which

1945.

open

declines

transports that is

certain

the situation.

seats each day more than three times the 2,500 we have
been able to offer an air-travel-hungry-public during

securities, which were quite a problem in the years im-Z
following World War I, do not seem to be
probable at this time because of the announced policy
of the United States Treasury to keep interest rates low I

minor

yvhich will provide a much greater
number of passenger seats that have ever before been
available.
PCA alone expects to have 8,000 passenger

mediately

absorb

De¬

gradual increase in sugar allotments
can be anticipated by industrial us¬
operation at. the beginning of 1945. / ers of sugar and an unlimited supDuring this spring. PCA expects;/
j
will be avaiiable at or near the
to have in operation a full fleet of
end 0f j946.
r"
:' ^
;
'
16 postwar air transports—56-pasIn spite of this restriction, car¬
senger,
four-engine planes which
bonated - beverage / manufacturers

better

is fairly typical,

twice the size of the fleet it

and

concerned/the

commercial

through the

/ ;

course,

period.

the postwar

g. PCA has in operation today a fleet,
of twin-engine
Douglas passenger

// As far

the

€. BEDELL MONRO
reconversion of industrial and commercial enter¬
\
r
*
President, Pennsylvania-Central Airlines
prises from; wartinie to - peacetime operations has < ex¬
ceeded by only a slight margin the amount of credit / /
Almost any day now we in aviation expect the public
-released by the ehd of war production. Loans secured / to
stop using those bromidic aphorisms to the effect
by government security collateral have increased; but
that aviation is in its infancy; that air transportation is
these will be liquidated in large part during the coining
a youth in industry.
For aviation is ~
months.
Moreover, rates of interest received on such
growing up. Air transport came of
are

based

that the War Loan

believe

posit Account of banks will go off
sharply but that other deposits. of
banks will increase. Money should;

during the war, continues to

finance

loans

prosperity

above mentioned factors.

or camps

the

Coast

moderate increase in commercial and
industrial loans since the end of hostilities, with Japan,* ^
but it seems evident that' the demand for bank credit to
There has

homes
of

switching from shorter to longer

maturities,; itwillberelatively/^s?ighf.

The.Sout)ieni Pacific, \v*ithfinish in returning to kowother Western roads, their
still has a war job to

ever,

securities,: which however may not become notice¬
able until after 1946. In any event, if there is an increase

ment

construction 'contracts
for/bottling equipment
are being carried forward as fast as
construction conditions permit and
as
fast
as- bottling
equipment is
made available. The full use of ex¬
isting equipment plus the capaeity
and

orders

R. W. Moore

of equipment now being installed
r/////
v /\/
4
This company is continuing
_
to expand through all must wait upon unlimited sugar supplies before the in higher cost of doing Z departments. We anticipate a clearly indicated growing
dustry can meet potential demand.
// ."
/••:
business. Since banking is essentially a service business;
popularity of air transportation for the products of many
For 1946, the output of sugar-containing carbonated ,v
fha
colomr
in
• i.
.nniinnn
in mm AAnntnr
A# {nnnQooinn
J*
the salary met nfnorcnnrinl is 4 In
cost of personnel
the largest single item
sections in our country, of increasing internation .de-/ .
,
h^veraaes should gradually increase Companies manu-/ /
of expense and the level of salaries of bank personnel
livery of goods.
>
>
;
>
■. ^
■
: facturin^ sugar-free carbonated beverages should show /
As our future develops, we will offer more jobs. Al,.Ainmp
Most of the soft drink manufacturing /
must necessarily follow the levels established by other
balance sheets of banks aire affected.

A......

Last, but hot least, banks face

types of business which employ the same kind of per¬
sonnel. Supplies and services used by banks also cost
as much or more than they did
during the-war and con¬

ready we haw doubled our employment rolls since V-E
Day. With 4,000 now on the 30b, we are stil .growing and,,
expect to have nearly 9,000 on our payroll by the end •

siderably

of 1947;

than before the

war.

}S^an1esVwi"f benefit
^%f«s

directly from the repeal of the
1, 1946. Soft drink manu-,1
(Continued ^4
on -page 574)

tax as of Jan.

^Volume 163

dumber 4460

THE COMMERCIAL &

FINANCIAL CHRONICLE
574

Debt

Management and Interest Rates

V (Continued from first page)
;,r,; Wnile no comprehensive state¬
ment of debt; management
policy
has been announced
by the Treas¬
ury,it has become more and more
•

apparent

that

jective is; to

the

end

1945.

The

total

about

was

S69

the amount due within five
years,
about $89 billion. In

addition, the
debt payable on demand
(savings
bonds and notes) aggregated over

costs

a minimum. In
fact, that one
objective seems to overshadow

completely all other considera¬
tions, even .* the desirability of
checking a further rise in our
money supply. The Treasury con¬

If the

$56 billion.
ged by the Federal' Reserve at
%% and certificate rates are held

rates.

that the

the

from

tions,

headed in

the opposite

version

the

debt

direc¬

''>-•* U"

for Short-Term
Government Notes
need in

fixed
the

our

substantial
amount of short-term
Government
securities
because of the vir¬
a

growth

bank

de¬

stantial shifts from
community to

community and from one region
another, large amounts of shortterm obligations are
needed to

provide banks with the
liquidity
necessary to facilitate these opera¬
tions. However, the
present volume
of short-term securities
has

gone

far beyond money market
needs
and there is no sound
reason for
further
short-term issues. ; The
•

floating debt' (bills

and ;certifi¬

aggregated' $55

billion5 at

•

Continuously
est

rates

and

declining
rising

inter¬
prices

bond

ex¬

prices,

real

estate

because
forces
far

prices,

sooner

have

can

later

called

indefinitely,
economic

turn.

inflate

bond

How

1 '■

they
compete with
the
public for the existing outstand¬
ing issues, thereby driving the
prices higher and higher. How
long the Treasury will insist upon

*'' f*

«•.

Lower Interest

rate
soon

structure
after the

war.

that

was

out,

v-v.f

•

zti'i

v.f VvV *5"

This pressure on rates is of
course, not limited to Government

ities.

bond

Furthermore, the declining level

oritstanding,

for

example,

tory Loan the yields

rates

and

expanding

the long-

term bonds not available to
banks
have also declined

rapidly,

part to

that

the fear of

due
investors

long-term

volume

of credit causes, surplus funds to

low:

'sv

<;> V"

may

pay

traints

the

resist the

rowing

and

easy

ing a sound fiscal
brushed /aside.

trend..

The

yield

tinued,

may

ioration

That's

the

on
these
declining rates.
First they are driven into
longerterm
Government

eligible

banks

and

then,

decline; into
As

the

corporate securities.

(Continued
<

-.V-

when

know. Acousti - Celotex
of-

tributors.

1. Gu aranteed

tees

Five Convenient

Efficiency.

Offices

26 Cortlandt

Street,

Broadway, north of City,Hqll, N. Yf
Spring Street, at Lafayette Street, N Y.

41 Rockefeller

743 Amsterdam

Plaza,

Avenue,

■

fraying office noise to

by repeated painting

dry

increases

keeps
or

office

tenants

pleasant hush

efficiency and

happy. His cooperation

^^icejwithout Migaiion.

Acousti-Celotex tile against

that

are

Or
drop a note to The Celotex Corp.,
Dept. CVA 46, Chicago 3, Illinois, It

cial, integtal treatment protects
every

He has the know-how to reduce nerve-

3. Exclusive Ferox Process*
This spe-

will bring a trained Sound Conditioning Expert to your desk.

rot,

50th Street, M Y. 20
at

96th Street, N. Y. 25

f Established 1848

affected

enameling.

Church Street, N. Y. 7

291
60

workmanship and results.

Permanency., The sound absorb¬

not

•

So consult
your local AcoustiCelotex distributor with confidence;

Every

ing properties of Acousti-Celotex

IN NEW YORK

high quality of

Acousti-Celotex distributor
guaran¬

.2*

maintain the

ing and training Acousti-Celotex dis¬

them

assures

Remember, too, the same care taken

Acousti-Celotex is exercised in select¬

they sound condition. They

Acousti-CELOTEX
REG.

t..-

Sold

by Acousti-Celotex Distributors Everywhere. '

•

for

as • these: ratey

high-grade^ rates decline,

conditioning. Such success is
proof of product superiority!

original perforated fibre tile—

•

con¬

fully

sound

why the majority of office

}

of the smaller institutions
whichv
find it difficult to
operate success-;

Outstanding Leadership. AcpustiCelotex is the best known name in

buildings insist on Acousti-Celotex*--

quality of com¬
mercial bank
portfolios, especially

trained, distributors.

■'

consequence

policy, if long

fungus and termite attack.

plus painstaking inspallation control by professionally

long-

*; t'? "• "v"

be the gradual deter¬

manufacture;..

the

of- the

Than with All Other Types Combined !

the

possible

aMtv.jsfAf.Wf.

control in

easily

not

,k?

Acousti-Celotex

'Til
♦his .leadership stems from

for

implications of such policies.
•!$ h# M;
V'
A'' '''

this

,;x<
Gelotex rigid quality

course are

illusions about

■m

of bor¬

Pleas

Although ^ tho
always ' im¬
evident,,there should'

damage done is

would be issued. Constant official
assuarances of continued low in¬

downward

course

spending.

balancing the budget and follow¬

bonds

terest rates ? have; stimulated

all, normal
res¬
spending, and its resis¬

tance to pressure
groups is weak¬
ened. With none of the usual
testsof the market
applied to its finan¬

high '
X-,

Government

from

unsound

very

by banks, such poli¬

of the present

are

country

the

excessively

rates,

relieved

Another

monetary policies toward
the traditional objectives of
trying
credit developments. Their hands
tied and in the long run the

amount

Deterioration of. Bank Portfolio#

ely

to prevent inflation and

excessive

Furthermore, when the banking
system supplies the
Treasury with,
unlimited
funds
at

~,A:

direct

the

banks, thereby
further increasing the
country's
already inflated money supply.

Fiscal Policy Hampers Federal
Reserve Functions :
i
—

because, the same in¬
fluence affects all
types of secuiv

securities

exces¬

cies may cause a
growing propor¬
tion of the debt to be
concentrated
in the commercial

run

tion of monetary policies for
pur¬
fiscal purposes. So long as
this situation prevails, the Federal
Reserve System is not free, to

mediately

Apparently the Treasury con¬
templates. the continued domina¬

permits- corporations to
borrow at lower and lower rates.

has declined to
1.26%, and on the
bank eligible 2 ^'s of
67-72 to
1.99%. Since the close of the Vic¬

false economy and will defeat its
own ends in the
long run.

Effect of Lowering. Rates
Industrial Securities

ities^; but gradually spread into
the longer maturities;
eligible for
commercial bank
ownership. The
yield on; the longest 2 % taxable

influences,

couraging the distribution
public

ing inflationary

policy

cing, the Government finds it hard

prices

needless
expansion ; of
bank credit and accelerates exist¬

policy which continues to inflate
bond prices remains to be seen.

this

easy

of debt held

beginning of

has worked

further

for

money rates. A con¬
tinuation of present
policies will
lead to
increasing reliance on the
banking system to support the
debt
structure.
Instead
of " en¬

those

exert

causes

downward influence on rates first
affected the intermediated matur¬

tremendous

provides fpc: multiple

more,

however, this policy has- resulted
in a further
lowering of rates. The

tual

posits and the possibility of sub¬

arid

ves

designed to stabilize the in¬

terest

disappearance of commercial
paper, trade bills, and
othermoney
market instrumentalities.
With the

depleted
additional Federal

This

Reserve credit spreads out
over
the system as member
bank reser¬

Originally, this monetary policy

rates

„

unchanged there is little
that the downward
trend

reserves.

short

was

money market for

cates)

The Tendency to

con¬

Need

There does exist

pressure to

Low

dency for yield s on stocks and
bonds to move/ in the same gen¬
eral direction.

Treasury's present policies

This

maturities.
The

taking
amount

absorb the Government debt*:

policy

into

by
any

banks

fields.

strong upward influence on stock
prices / because, ythere is. a ten¬

in, effect, guarantees pansionsof; member bank credit. without
having these economic
a market
for short-term securities When member banks have
call
the
surplus forces
turn?* Holding
regardless of the amount'issued, funds
they compete with each down debt costs is a commen¬
and the Treasury
depends,less ahd other for the existing longer-term dable objective but when exces-'
less upon the
investing public to issues eligible for banks. Further¬ sive zeal in this direction

traditional concepts of sound debt

tion, i.e., toward the gradual

market

credit to support debt opera¬

serve

refunding the short debt into
longer' maturities,v according to
is

the

member

other

price

sively

thereby extending

issues, thereby sup¬
plying the" necessary FederalRe¬

Instead

present

and

support

better return,
the inflationary

in interest rates will
continue, cannot be brushed aside >-lightly
The mechanism for
creating credit by the monetae authorities; or by
and driving up bond
prices works the; banking communityv The ^os-r
almost
automatically. The banks Sible long-run consequences on
are
surfeited
with
short-term our financial structure and on the
securities which
they turn over general economy should be weigh¬
to 'the
Federal Reserve
Banks ed with great care. It has never
whenever it is
to
necessary or ex¬ been possible
inflate
com¬
pedient $ to
build
modity prices or stock:
up

Of short-term

management, ■?.the

doubt

peg¬

partly through openoperations.. The- Federal
Reserve banks, in accordance with
Treasury wishes, stand ready to

generally ru¬
policy of

years.

market

current

several

by the Federal, partly by
preferential discount rate of

Vz %

converting all maturing obliga¬
tions into % % certificates of in¬
debtedness will be followed for
the

continue

down

tinues to issue large amounts of
short-term "securities
and, with
the apparently reluctant
acquies¬
cence of the Federal
Reserve Sys¬
tem, to hold down short-term in¬
terest

remain

Bill rates

equities, real estate,
anything else which promises

2V2% bonds sold in the Vic¬
tory
Loam, Drive
has
already
declined to 2.28 %;
i.e.* the price
has risen over
3V2 points within
a
few weeks, after the end of
the drive.

one

billion, and

into

over

the

mar¬

ketable debt maturing within
year

dominant ob¬

keep interest ~

mored

flow

U; 6. PAT. OFF.'

In Canodo: Dominion Sound
Equipments, Ltd.

page

575) ;:

the effects

expenses directly affected by labor costs,

inflation will

favorable, but

be substantial

and immediate.

It now

the increase in fuel, labor and material

that

appears

;

25% of other opera¬

erated by fuel burping plants, and

will benefit on ting

'i The outlook for the industry is most

held by business and individuals should,
in itself, go a long way toward preserving a high state
of business activity.
Accordingly, life insurance sales.
are likely to continue at a high level during the current;
bank deposits

proximately three-fourths of the total electricity gen¬

572),

(Continued from page

v :

;

factoring companies having fiscal years
a proportionate basis.
»
■
*

1946

Year

Speaks After the Turn of the

Business and Finance
,

Thursday, January 31,

THE COMMERCIAL & FINANCIAL CHRONICLE

574

"■'■'v'

§;'yiea-S'^
4

less favor to life
and war years,'
Congress and the Federal administration collaborated *
sugar.
in a cheap money program for the investment market.,
companies.
'
\
*
? .
>
* ,
WILLIAM J. MURRAY, Jr.
/Now the inflated investment demands of individuals and .
One of the important factors in the near term labor
business, plus those of our inflated banking structure, ■;
President, McKesson & Robbins, Inc.
picture, is the need for increases in personnel to pro¬
/are/producing excessively low interest yields. This is of|
vide for promotional activities and research in a period
Sales of pharmaceuticals and preventive medicines,
concern to the 75 million American life insurance pol- i
when increased business cannot provide sufficient reyalways the backbone of the wholesale drug industry,
icyholders,* because the cost of their life insurance is i
Tenue to offset this expense.
*
1
should show a steady growth in 1946 as the result of an
increased by every reduction in the interest earnings,
It must also be borne in mind, that some utilities
increase in public "health consciouson
their life" insurance savings, called the policy re- .
serve
industries that have
future prospects is sugar and the rate
depends upon the availability

the key to near

which volume increases

costs, and the absorption of returning

completely offset the effects of reduced taxes, and a
possible small increase in operating revenues, in most

picture presents other aspects" of
During recent depression

Our

service men, will

insurance.

•

gained through emphasis laid
subject during the war years.

ness"

principally

produced

con¬

/,
n

serves.

goods, while others are affected materially by
reduction in the products of war, creating'a widely
divergent situation among the various component com¬

sumers'

On this

v In this connection some of the socalled "war drugs," such as penicillin
and streptomycin, will be available
to
the
general public in greater
i: quantities on medical prescription

•

The shortages in

through drug stores as wartime restrictions are lifted and production

emergency.

for

through drug outlets appears
promising.
The year 1946
should bring into sharper focus the
future sales potentials in this im¬

products

problems of securing rate increases which may be made

lems
Wm.

; and air conditioning to
other types of outlets.

meet the keener competition of

cient to md£t the

increasing demands from all branches

of the drug industry and will continue so until registrations in pharmacy schools are increased materially.

a period of continued scarcity during the
early months of the new year, people may expect an

Following

;'
•

accelerating return of popular lines of sundry merchandise to the shelves of the country's drug stores from
have been conspicuously absent since 1942.

•

which they
This

the

will

include

items

drug store such

batteries,
alarm

pen

ERNEST E. NORRIS
President, Southern Railway

President, The Long-Bell Lumber Company
The outlook for the lumber industry is

good as a re¬
backlog of delayed building con¬
struction, which during the war, or for approximately
three and one-half years, was restricted and could not
be expanded to meet normal needs.

traditionally associated with
and films, flashlights,

cameras

and pencil sets, razors, heating pads and

clocks.

While production of this "come back" merchandise is
at present hampered by the uncertainties of price ceil¬

ings and trained labor shortage, supplies should begin to
catch up with thq public demand by late spring.
A. G. NEAL

cial and industrial

of the lumber industry for some time ahead.

present position of the lumber industry is one of
Slowly recovering from the sudden ending of the war*
Shortage of labor, and strikes since the close of the war,
have greatly reduced production of lumber. The present/
price structure and regulations have not been revised
The

sufficiently to encourage production of the items necessary to help meet the shortage of building materials.

in production will depend,
improvement in the labor situation, price ceilings
logging conditions. The labor strike has been set¬
tled; experienced men are returning from the service, and"
as favorable logging
conditions develop between now
and spring, we should see production schedules on the
upgrade by spring.

With the most

significant changes

at hand, resulting
the Electric Utilities are now in a
position to appraise the prospects for 1946 with some
•
degree of certainty.

from the War's end,

want and need, I venture

that 1946 will

The

utilities

are

the fortunate

commercial and
has

brighest era in the
business in this country.
I

duction
is

industrial

business.

interesting to note that

sales

16%

decrease in industrial

of electric energy, an 8% de¬
in total sales, but had no ap¬

crease

preciable

ating

the

total

oper¬

of the large privately
public utilities.
From this,

revenue

owned
we

effect

can

see

that the utilities

should

.maintain the operating revenue level
of
around
$3,160,000,000, in. 1945,
•.
'

compared

with

;

$2,271,000,000, / in

»
/
1939, a 40% increase. Against this
major increase in business, we find
operating expenses and taxes, which have
than wiped out the gain when reflected in net

increases
more

Neal

income.

During
5

Jf'
f
,

the War period, many

lessons

were

learned,

regarding economies in operation through more efficient
use
of personnel, interconnections, use - of generating

station capacity and electric system design, which along
with reduction in fixed interest charges and taxes, may
provide the basis for overcoming the inflationary factors immediately ahead. .
■
*" J
The

outlook

for

1946 shows

many

conflicting trends,

prediction difficult. • The industry is es¬
timating a net loss in sales of around 5%, compared
with 1945, and a slight increase in system peak loads.
With the expected growth in residential and commer¬
cial business, a 3% to 5% increase in operating revenue

which

makes

With prospects for such a small increase in
the answer to 1946 net income obviously lies

probable.

revenue,

the

trend

operating

and

maintenance

(that is, fuel, labor and material) and taxes.

Everything I can see and hear convinces me that
the South has entered an era of industrial growth and?
commercial expansion that will far outstrip anything
that has gone before. This belief is bolstered by the
fact that, prior to the war, the South was growing faster

industrially/than any other section of the. United States,
and the war only. accelerated: this; growth. During last
year, for example, 148 new industries were
in Southern Railway territory and 53 existing plants
were expanded; Great as our previous growth has been,:
industrially, I firmly believe that, as yet, the surface
has just been scratched.

established|

!'ABi

President, Bankers Life Company
In

drop of

expenses

With ap¬

collective sense, our American John Q.

sallied forth into this new year

liquid assets—$64 billion
$92 billion in currency
and
bank
deposits
immediately
spendable. During this year, John
Q, is likely to have his purchasing
power augmented by an income of
$120 to $130 billion, provided prog¬
ress is not impeded by extensive and
extended strikes, or other damaging

bonds

Citizen

with about $156 billion

highly

Government

Southern; agriculture, too, is

and

artificial
Like

beginning to make themselves felt. Moreover, the new
industrial uses that are being made of Southern agri-;
cultural products are adding strength to our agricultural;
economy. :*''
/
;/•//
• ■ ■,
''
" '

agement

collective American citi¬

been

our

vestors

now

With

us,

;

outline

purchasing

in the armed forces of the nation.
reservoir of such ability and skills

Gerard S. Nollen

power

recent

inflated

fact.

war

(;j

situation

to justify

gives

late

evidence

existing

;

Southeast, for

support of its faith

serves,

the

Southern

in the future of the territory ;
Railway is readying itself,;

equipment, the inaugura-»
schedules,/yard and j
tradk improvements, and the like, to keep pace with any j
transportation demand which this new era in the South j
may produce.
• •
'
-f
/ '■ " ;

through the purchase of new

that

•tion of new
:•

uncertainty involved in the present

predictions about the magnitude'of
However, the
purchasing power in currency and

national income for the current year.

extensive

There is too much

our

years

sales,

belief that4he South is the;

expected to be 0.8%

quarter.

commodity
sales, follow the ebb and flow of national purchasing
power. The accelerated growth of life insurance during
insurance

indus-'

the first quarter in 1946, j,
above'the same period in 1945.
And only fivq of the estimates for the thirteen. regions ?
throughout the nation forecast an increase in the first j

let us consider its significance to
life

for Southern

the future.

Lending emphasis to my

loadings in the

the business of Life Insurance.

Traditionally,

the factories and;
Thus, there's a vast ;

up-and-coming section of the country is the recent esti¬
mate of the Shippers' Advisory Boards that freight car i
are

picture
of
before

"know-how" and industrial skills that/ have '

acquired during the war, both in

tries to draw upon in

is $296 billion.

this

American

of consideration in any fore-;
the South's future is the greatly, increased man¬

Another factor deserving
cast of

restraints..

our

assuming even greater

importance, - with contour farming, mechanization, di¬
versification of crops, and improved methods of all kinds

collective American busi¬
ness
other than banking has accu¬
mulated unprecedented reserves in
money and Federal securities. Busi¬
ness holds about $35 billion
in cash
and bank deposits,/and about $40
billion in Federal bonds, or a total
of $75 billion.
The total of liquid
assets
held
by all non-bank ' in¬

zen,

particularly optimistic concerning the outlook
served by the Southern Railway Sys¬

tem.

re¬

25% in general business .activity, as
indicated by a published index, pro¬
duced

GEORGE S. NOLLEN

revenue

Ernest E. Norris

of
history of

for the territory

v.;

residential

offsetting effect against

all

the opinion

mark the beginning

the

completely ex¬
hausted in the war effort, leaving substantial cash bal¬
ances available for replacement of inventories,-and this,
together with the large cash reserve set aside for con¬
struction, should result in a gradual increasing activity
in the lumber industry as material and construction
crews are available.
-

position of having a wide diversity
in business, whereby the
increasing

will be¬

turning out the things we

gin

Mill and distributors' inventories were

President Potomac Electric Power Co.

services are em¬

the wheels of industry soon

The prospects for increase

upon

and

■!

ployed 'only after processes of pro¬
duction and manufacture have been
completed by others. Thus, the vol*
ume of freight traffic rises and falls
with the amount of industrial pro¬
duction and, with production slowed
down because of strikes, it is diffi¬
cult to make an accurate prediction
as
to railroad traffic and earnings
without knowing how long produc¬
tion will be retarded.
Assuming, however, that the pres¬
ent unrest will soon be intelligently /
and satisfactorily resolved, and that t

of active building
the capacity

whose

institution

urgent housing needs will require several years
operation, and, in addition, I commer¬
replacements and expansion will tax

The

System

railroads in 1946, with the wheels
of industry grinding to: a stop, because pf strikes, is particularly difficult to forecast at this moment.
This, is true/because a railroad is
not a producer; it is a public service
What's ahead for the

M. B. NELSON

sult of the tremendous

trained pharmacists continues to be a
serious problem to both the wholesaler and retailer.
Despite the return of some war workers to this field,
however, the supply of trained personnel is still insuffi-

;

be reason¬

we can

which the industry looks forward.

stantial growth to

The shortage of

•'

satisfactorily disposed of,

are

ably certain of incomes keeping in line with: the sub¬

Murray, Jr.

pected to stimulate capital expenditures for physical
improvements in drug store operations including mod¬
ernized store fronts and interior displays, better lighting

;

continued

the

and

wartime restrictions
labor and materials may be ex-

factors

competition of tax exempt public power. If these prob¬

Removal

inflationary

necessary

search and development,
i

Many of these problems are of a temporary nature,
the industry should be in a strong position • by the
In the background, however, we have the

end of 1946.

portant and comparatively new field
as the result of intensive market re¬

Skilled

requirements for construction may exceed supply,
du,e to accumulation of projects held up during the war

increasing dis¬
tribution of animal and plant health

problems

labor

is stepped up.
The outlook

materials for construction and main¬

work, will continue to be a

consequence;
and rthe; ad-;
ministration should take warning.
Their• efforts/ must:
now be directed toward stabilizing our ecbhomy which»
is already seriously out of balance with low/investment:
yields and high living costs.
The thrifty soul who lives in harmony with the demo- *
cratic American tenets of self-reliance and individual |
independence is being ground between the millstones • of •
cheap money and high living costs. There is a limit > to *
the thrifty soul's endurance.
If that limit should
"
reached, he will throw caution to the winds and, in des- :
peration, cast his lot with the spendthrift in the com- '
modity market and the gambler in the stock market./
That is the road we will travel if Washington gives way *
to political expediency land selfish group pressure.

panies.
tenance

■

The present situation is of such seripus
to our entire economy that both Congress
.;

and faster freight train

^Pnntinnprl

-from

r»ncfp

Volume 163

(Continued from

securities

may

lar

taxpayers

and

industrial

and

concerns

public utility companies to get
more
plant for every dollar of
their fixed charges."

will

The

interest

low

that

theory

rates

policy based upori the assumption

promote, ipso facto, econo¬
mic progress and employment is
open
to serious/ challenge. The
claim
is
altogether % meaningless

that

thermore/any 'debt management
:

through

„

ression is

will

never
again/ go
financial crisis, or dep¬

short-sighted/indeed,

i/by; all the'tests of experience,
/ one prime obj ective of debt man¬
agement should be to get as. much
of the debt as possible into the
hands of the public and,; out of
v

the /commercial /banks,< thereby

time when

faced with

we are

for goods

demand

unrivaled in
history and when liquid as¬

our

sets

are

sufficient

than

Compared
interest charges
are usually so negligible that they
do not exercise a major influence
this

support

demand.

business

decisions.

one

pocket

into/another.

the

other
hand,/; there"
taxpayers .; who
are
recipients *of interest.

all

taxes

not

/paid by the
and the interest paid by the
Government was all received by
the rich, the argument for lower
were

poor

and

have
ever,

lower
some

Federal
been
and

interest

validity.

not
tax

rates

would

That, how*

the; situation.
laws

secure

much

group
favored at

example,

are

Our

are

investment

poor
pos¬

sible from corporations and from

charitable

Secretary
cerns

ins¬

benefit at

them

are /now

straits.

severe

many

financial

interest rates

philosophy
seems

•

favor

groups.

by life insurance companies, sav¬
ings " banks,- trust accounts, and
4>ther ' institutional investors. A
Sound

refunding policy on the
part of the Treasury would make
of these saving* in order to
distribute the debt. This, however,
would require a substantial change
use

existing

policies.

The

dis¬

tribution

of the debt cannot be
effected if monetary policies cause
banks to competq in the market

for outstanding issues, thus driv¬
ing interest rates lower and lower.
Treasury offerings of medium
.

and

long-term issues sufficient to
absorb accumulations of/ savings
Would

contribute

much

toward

checking the decline in interest
rates.

however,

equally

necessary,
the expan¬

restrain

sion of bank credit which is used
to

compete for outstanding

ket issues. This would

check

on-

banks

acquire

Federal
;

the

with

ease

some

which

from

reserves

Reserve

mar¬

mean

the

Banks.

The removal, of. the '•%%. pref¬

erential/discount

rate on shortterm, Governments would be one

step

direction. Another
would be for the Federal to sup¬

ply

this

reserves

little less

this meant

even it

freely,

all

fairness

the

expense

low

corresponding decline in
deposits; and help to combat a
serious threat of inflation. Such
a

than

justify

any small increase that might oc¬
in the interest cost of the

cur

public debt.
The Merits of Low Interest Rates

While there is general recogni¬

tion of certain benefits from low
interest rates,, there is a growing

conviction among obj ectiver stu¬
dents of monetary matters that
the

doctrine of : easy money is
being overstressed and its benefits
greatly exaggerated; Treasury of¬
ficials whose policies continue to

drive

interest

rates

lower

and

-lower, .reiterate 'the • benefits
low

interest

/give

side

verse

rates

but

address

the

appear

consideration

the

27,

ad¬

question. In

November

money advocates
in
statements give no
recognition to the importance of
the saver and investor, nor any

Committee at

1945,

Indianap¬

run

policy of.; low interest
clearly benefits the taxby making possible a

payer
lower level of Government ex¬

penditures and, consequently, a
lower

would

j;,./More

level

taxation

otherwise

than

possible,

important, low interest
a
stimulating force

rates will be

•/in

the

they

//the

economy

will make

generally,
it

home-buyer

house

value

possible

for

consequences

penalizing

Underwriters and Distributors

the

thrifty. Thrift has built Amer¬
ica and made it great in produc¬
tive power. It is a virtue, which
the country can ill afford to dis¬

card ifwe expect to continue to
expand our productive power and
increase the standard of living of
the people. Some countries today,

including England,

are suffering
economic pains because of
and
out-dated
productive

severe

old

equipment
ficult

which

makes

expand

dif¬

Dealers in

production and

compete with more modern equip¬
ment
elsewhere, Harrassing the

United States Government

thrifty and discouraging capital
accumulation, if continued, may
a
future date put us in the
same unenviable position of stag¬
nating while more vigorous na¬

tions

ahead. It is

move

for rates to decline

State and Municipal Bonds

thing

one

result of

genuine

savings and capital ac¬
cumulation, but quite another to
depress rates artificially by ex¬
panding bank credit.
It is somewhat disquieting to
find

the

Government

mical and

ing

those

Public Utility, Railroad, Industrial
*

econo¬

niggardly in

even

interest

who

,*•;-

*;<V, v'f'J

^CvKiVv- 'I''- '

;-r

/y'l*?

and other investment securities

pay¬

saved

ditures. These other expenditures
must

get
each

also

for

dol-

borne

payers. %/■/

The

that

savings

can

rates

fraction

the

to
are

what

practicing

Canadian Government

..;/ /■./
Treasury
depressing
only a small

be effected by

interest

by the tax¬

could

Provincial and

Municipal Bonds.

saved

in other
in
other
Government
expenditures
and
loans, furthermore, would help to
check
existing inflationary in¬
fluences instead of accentuating
them. Rising prices may cost the
taxpayer many times the amount
of any possible savings through
directions.

lower

economy

Economy

interest rates.

The

same

true of the

home-buyer and other
economic groups mentioned
by
the Secretary. Even a small rise
in the cost of labor and materials

greatly ; outweighs any possible
saving in interest cost to the homeIf artificially/ cheapening
also mean artificially in*
creasing the prices of food, cloth¬
ing, land, houses, and rents/ it
buyer.

money

Harriman

Somebody Pays the Price for
Artificially Low Interest
Somehow

the

been

created
are

impression

that

low

has

interest

a question whether the advan¬
tages to taxpayers are not more
than
outweighed by the disad¬
vantages to savers and investors,

and for that

matter, to the general
public, if the policy generates a
rising
price /spiral.
In / some
measure,

BOSTON

PHILADELPHIA

clear

gain to the
general public without any off¬
setting disadvantages. This is er¬
roneous. Somebody must pay the
price for these low rates, and it
a

Ripley & Co

Incorporated

does not benefit the poor man.

rates

olis, Secretary Vinson said:
rates

public

consideration to the possible long-

before the State Chamber of Com>merde " and
the
Indiana
War

/Finance

easy

their

course,

taxpayers,

savers, and inves^'O aresame

they

of inves¬

declining rates of interest.

and furnished the funds for finan¬

policy, result in a better distribu¬
tion of the debt, and create a
better debt structure. The grad¬
ual reduction in the debt held
by the commercial banks would

now

the

paying a high price for the
alleged benefits of these low and

cing the war, and at the same time
so
generous in its other expen¬

the unsound features of monetary

result would

are

that

the

borrower and to penalize the saver
and
investor.
Any analysis
of

among

remove

of short-term rates,
These changes would

The

not

are

which

firming

some

lead to

costs

factors

When

tors,
including
life
insurance
policy holders and savings de¬
positors. The fact is that the public

'<"•

whole

for
bor¬

benefit from lower rates he should

losses

and

greatest

that industrial con¬
public utility companies

add

income

corporations,

says

and

titutions have suffered substantial
; of

the

savings depositors
life insurance policy holders
among
our
most important

and

expense

the

while

rowers

types of secur¬
ities,/whether
Government
or
private, are reduced. All endowed

makes

why
always

should
the

other. Business

the income of every savings de¬
is reduced. The incomes

educational

classes

understand

;•

positor

certainly have //The

designed to favor the
to

one

of investors in all

are

many

people in the lower income groups
are savers and investors.
They all
have their incomes cut by declin¬
ing rates. The cost of every life
insurance policy is increased, and

building activity and slowing up
the production of needed goods.

Substantial amounts of investment
funds are accumulated each year

out

them

economic

Certainly
the
retarding

interest

funding maturing obligations into
the types of securities that will
be taken by the investing public.

putting

simply results in

these

difficult

with other costs,

reducing the present inflated level
of bank deposits. That means re¬

the Government

taking funds

for

qualify under the

foresee what
happen to^ ihena in the next
financial crisis / or business de¬
pression, or what tlje effects on
the banking system will be, Fur¬

for and the payment of interest/by

payment;

local

pitals for their tax dollars; and

prophet" to

and

get more schools and more hos¬

Crating" regulations, ft does not
take

monthly

State

into I

switch

573)

page

secondrgrade
then / into
and;
third-grade securities. While these

middle and upper income groups.
On the other hand, millions of

Debt Management and Intel

the / tendency

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4460

Representatives in other Cities

CHICAGO

THE COMMERCIAL & FINANCIAL CHRONICLE

576

Thursday, January 31,1946

Business and Finance; Speaks;After thejTurn |of
-00

'■

ivr

wnpwnnn

;;

„

unfortunate since ,the lower grades are required for
housing and prefabrication and these grades can only

r*0 •ui* vv

developed under wartime practices,; are being widely
and wisely- applied to peacetime: production methods.;

be manufactured at

(Continued from page 574)

the Year

substantial loss, and therefore
not being produced in any quantity.

Vice-President,'Electro Metallurgical Company

are

"Also gratifying is the keen interest of so many indus¬
in new or enlarged production facilities; an in-

trials

Theierro-alloyindustry depends so much on the steel,
Since our products go into "so many fields we have"
industry for the bulk Pf vIts- business; that: anymake a number "of observations.cf the prospects for the ferro-alloy industry in 1946 must rFirst, every business, large or small, with whom we
Be based, on probable steel rproduction.^An; esttoa^^contact has an^ ambitious expansion program. "

•'

terest which eyen eurrent labor problems.do not seem
to have dampened. This interest by no means appears
to be confined to central eastern Pennsylvania; although
here we firmly believe that this area offers some ofV
the greatest industrial advantages in the nation.
valuv

industry and
developments;

been estimated that if reconversion proceeds

going into the manufacture of deep freeze units and

are

called
it did
1943, when almost 90,000,000 net

clerly manner, the steel industry might well be
upon to deliver from 75 to 85% as much steel as
in the peak war year,
tons of ingots and castings were

produced.
• ■
;
largely upon the
production of alloy steels, and since the output of these
steels is expected to exceed pre-war figures, it is believed
that requirements for alloying elements will follow the
same patterns Duringthe -war- when" there nvas at times
;a critical shortage of. some of the. alloying elements, a
number of plans were adopted to conserve them.
Gov¬
ernment regulations restricted their use to the produc¬
tion of war equipment, and alloy steels with less than
the usual or standard alloy content were; developed and

All

controls

and

tain of immediate success if

the

use

seems

line

any

they

are

NaJy'

was

production in 1946

young men out of the

country. If our Government were
of a capable business executive,
a survey would be made of each field of endeavor to
achieve a qualified opinion by each industry of possible

in pre-war years.

One of the

under the management

outstanding features of alloy steel produc¬

tion; is the steady

increase in the output, of the high

chromium-nickel steels commonly known as ihe -staintfess or heat and corrosion resistant steels. There was a

feirly; continuous land rapid; rate of increase in the pro¬
duction of these steels for several years immediately

preceding the war, and this trend is expected to continue.
These steels, because of their resistance to corrosion, *edistance to scaling ■ > at high; temperatures, their high
strength "at both high and low temperature, their easer
of fabrication^ theirsattractive appearance when polished^
®nd< the ease witlri which polished surfaces cab: Be kept
clean and sanitary have resulted in a 'wide application
m- the
chemical, food, -beverage, transportation, and
power industries^; and for architectural Uses.* The^ de¬
velopment of new aircraft utilizing the rocket or jet
principle of propulsion has led to a renewed interest
pi new power units of the gas turbine type which must
operate at high temperatures to obtain good fuel effi¬

consumption over a period of time, as well da projected
production, so that those contemplating the entrance^
into any field could be intelligently guided.
That might
tend to prolong the period of prosperity and level off
the ultimate depression, whereas otherwise we will
again develop a peak which is too high, only to swing
into a valley of depression dangerous to our economy.

market.

As the ferro-alloy industry
was

able to take

has

care

reconversion prob¬

of the maximum

President, United States Plywood Corp.

Plywood received its initial impetus in this country
during World War I. The availability of the plastics
as bonding agents in the intervening period presented
to engineers of World War II a vir¬
tually
new
product,
completely

which

voluble

are

performed with

V-

residential

The

boxes

lined

radio

with

detector

masts
as

variety

and

infinite

opportunities, and

others,
facts; and to

knowledge,

our

well

as r

25% of customers saying "Yes" to the new sequencetype washer; 15% with an active interest in new home

building with
and

for this

lies in

On the other

duction and cost to the

serious effect upon pro¬

consumer

since their refusal to

grant; increases commensurate with the higher prices of
raw materials and labor is
forcing the industry to con¬
centrate on selective types as to size and quality in an
attempt; to stay out- of. the red, and this is particularly

hand, the

survey

reflects little reaction

ning" purchases of $10 and less. This confirms the principle that such appliances must constantly be exposed to
customer-traffic to produce sales volume.
The Number Two indication of future accelerated bus¬
iness

has much to do with the fact that the abundant
electric power which helped so much to make American

production of ships, planes, tanks and guns the world's
Sreaiest. is the same power that is now so readily available for placing American peacetime production in the
category.

same

policy is having

>
„

questions on small appliances; indicating not a lack in
intent to purchase, but rather a lack of interest in "plan-,

.wo.

The OPA

the fact

number of years.

war,

„

that

plywood must be manufactured
Lawrence Ottin«er
from good logs and we have been
;
0 notoriously wasteful of our forest
reserves as a national habit, and the acceleration of
lumber and plywood requirements during the-war has
further depleted our timber reserves. New manufacturing techniques and conservation methods are gradually
being adopted, but their effect will not be felt for a

a sizable percentage listing renfodeling
planning as "musts" in the five years fol-

kitchen

lowing the

exceeds: present

reason

in other locations

ers;
:

production,
but it is doubtful if plywood will- be
available in required quantities at
any time in the foreseeable future.
The

surveys

type of cooking equipment; a big interest in home freez-

consequence of the

demonstrated usefulness of plywood
in many fields the demand
today not

only

the

founded.

and

shelter

uses.

closely parallel our own findings. Our survey shows: A
stainless f 0 subs tan iiai demand tor eiectric
ranges over any other

packinging of all kinds,
other

field

close-running third in
facts here are even better
Lending itself to actual survey better than the
the residential market discloses very definite

market

landing craft, PT boats, smokeless
steel,

the field

clusion.

distinction in all theaters, including
the tropics. A few of its important
uses
included the .manufacture of

powder

the forecasts of others who

predict
offering the most wide-open
possibilities.
This opinion, and it seems soundly based,
evolves from the fact that farmers, generally, have
learned from their war experiences the pressing need for
more electric service in order to apply to agriculture the
same progressive electrification used in other phases of
American industry.
The sound financial position of the
American farmer is a contributing factor in this con¬
as

the rural market

LAWRENCE OTTINGER

waterproof,

appliances were
existing ones were
out, today again finds an upward trend in residen¬
tial consumption though only the barest trickle of new
appliances reaches the market.

'Anticipating

no new

substantial, nation-wide step-up in all
over the
next ten-year period, the
companies generally are moving ahead on in-

electric

demands

electric

' creases in generating capacity. Pennsylvania Power &
light Company^alonei has tinderivayia: $65 million pony
struction program of which a major portion is new
as anything else that may be said, the
rationalization, by General Motors*, keen-summarizes utility thinking—
"My big interest is in the future, for I am going to spend
the" rest o£ my life there.". There Is every reason to

clearly

clever,

new

witted Charles Kettering

believq America is just at the threshold of a pew era"
...

the real beginning of

electricity,

others in

some

Another enhancing factor is that recon-

version of industry has not developed the industrial load

thq Electric Age

as new uses

already in production and countless

the development or laboratory Stage,

become

commonplace realities of every-day Americana.

CLIFFORD E. PAIGE
President & Chairman of the Board,

nesses,

The Brooklyn Union Gai Company 4

has

industry,. unlike many busi¬
comparatively small reconversion problem.

manufactured

The

(with

Just

time requirements,, no difficulty is expected in filling all
^ibreseeable^demands,:.';;#^;#::.:;^

SSS,

iperiod^tvhen^residential used in*' f

spite of the fact that

worn

opinion of many utility men, the commercial
its new high levels of lighting and with
other electrical modernization required by the comt petiti:ve position of commercial establishment#
-the upswing.
^
' 4

war*

Many >o*f these newcomers will
who certainly deserve better

available and countless thousands of

In the

field

This

servicemen

As during the war
creased in

pent-up demand for equipment in the commercial, rural
probably as much as three
to five years will be required to satisfy even current
demands for some types of equipment.

of steels of ttiis^
type will; continue for-some -time at thq highest wartime

••

particularly

firms without established repair- service And' war-

returned

and residential fields where

♦easori to believe that the production

it.

most

The Number One gauge to the future is the immediate
The war-restricted years created a tremendous

are
of the high
chromium-nickel-molybdenum type,
probably modified by one or more other alloying metals.
Because of the pent-up demand already existing for the
iligh alloy steels of the stainless or heat and corrosion
resistant type, and the possibilities for increasingly large
Use in the gas turbine and power fields, there is good

«ate and may even exceed

when

1946

durinc

to aontonre deaiem

time-created sidelines.

critically viewed, the prospects for
the future of the electric industry for 1946, and especially- through the next decade, appear exceedingly
bright in central eastern Pennsylvania; and for the same
reasons that lead to this encouraging attitude,
here, a
similar conclusion appears logical for the industry, na¬
tionally.

The only alloys which can give adequate serv¬
ice under the conditions imposed in this type of service

new
.

-appliances

new

plant facilities.

CHARLES E. OAKES
President, Pennsylvania Power & Light Co.
Even

few

^ SfyTgLd ^nen

ciencies.

lems and

comparatively

latfsi

we sup-

com¬

Clouding the electric industry picture is the unsettled
on appliance manufacturing.
Prolongation of
present labor-management 'negotiations may* -result iiv

merchandise,

already

condition

a^t> Marme, bhe largest Air Force, we supplied
Lend Lease

have

pleted plans for new plants in the territory and other
important negotiations are under way..
;

that^Social Security and Old Age Pen-

industries

nationally-known

new,

fine, with the, pre-war trench the plied 0Ur.A y and Navy ^ ke^Vw torn? eran^my
of alloy steels p expected to be a somewhaton a high basis with 12 million of our most productive

Higher percentage of the total steel

;

actively pursued' by the company's Industrial
Development Department. The result:
A number of

program

sions will improve the standard of living of a large part
of our underprivileged population, but it must be re-

billions of dollars

The "Heart of the Market" is the theme of a current

at all skillful,, but

Contrary to the opinion of most executives, I do not
believe that this country can consume the full produc¬
tion of which it is capable for any extended period of
time. I realize

alloys

radius, lives one-third

cer¬

serious trouble.

revoked before the end. qf 1945, ^so that'Cpnsump?
tion: during |946 may be expected; to follow with*■some
minor changes the pre-war pattern. As a result of war*ime experience and in

than it

almost

the day of reckoning will come
anticipate and we may be in for

most

were

production

are

that

than

sooner

restrictions

Manufacturers in almost

pated.

high level in transportation

Market" where, within a 200-mile
of the nation's population.
,;

satisfied

Consumption of ferro-alloys depends

facilities; a sound balance between industry and agri¬
culture; and a giant market for peacetime goods . .
I
for central eastern Pennsylvania is the "Heart of the

if the pent up demand, large as it is, is likely to
in many fields much sooner than antici¬

adopted for many uses.

abundant electric power;

refrigerators and this field seems to have I attracted I
manufacturers in many other lines. One aircraft manu¬
facturer is making cigarette lighters, and it appears to

gas

-"boom* and hence

V-J Day cutbacks.
Its
and service^ ^essential M
peace, were even more so in war.:
Hence, the war brought only an in¬

very
""

few

product

creased

service.

demand
Now

for

that

gas

and

gas

has re- v
industry's
enhanced
reputation for dependable service ;
and
its newly-won friends assure
continued healthy growth.
In more than 20 million homes, '
factories and commercial establish- '
turned,

peace

the

„

ments, gas today is valued as never•
before

for its dependability,, econ¬
adaptability and cleanliness. The outlook is for, a continuing

omy,

growth/in number of. customers, in
purposes for which; gas is used, in "
Our financial

total volume of sales.

position has never been sounder as
attested by the excellent market that
has existed in recent months for gas
company securities.

Clifford

■*

The rapid expansion of our domestic business is tielayed only by the time lag in getting equipment and
app0ahces.1 In the industrial market, ;,itr is interesting
' to note ^at in the Brooklyn Union Gas Company as. £
;^se m point,industrial ga$^^ sales have increasedyabout
50^ when comparing November, 1940, with posft-war
0 November 1945. In anticipation of the tremendous increase in domestic gas usage by average families when
equipment is available, our company, for example, is
even now putting in manufacturing apparatus to enlarge
volume of production, increasing its pumping capacity
; and its distribution system, an investment altogether of
$5,500,000—an indication of our confidence in the
bility and earning power of our industry.
•
1
• •
A broad research and promotional program sponsored
,

bF thf American Gas

_...

veloping new markets and expanding present ones, ine
anticipated had Ihe .Wfr been
prolonged m the ipstitute of Gas Technology and other investigators are
Pacific.
Contributory to the minimizing of industcial;: working 0n improvements in making.;.gas at reduced
,

losses

load

losses

is that

new

and

additional

applications of

electricity to production, with the resulting efficiencies

cost.

are being constantly improved,
(Continued from page 578)
;•}.

Gas appliances

(Continued from

521)
The
educational programs of hundreds
page

garded in the immediate housing

and colleges of the country.-

program for the American

thousands of: young men and
who were in the armed
service
wer^:,, interrupted.
As a
matter of right they are entitled
to the opportunity - to make
up
that which they have lost.
The
of

our

is in

country

small degree dependent upon the
proper training of those who are
to

assume

hence.

leadership in the days
Our
universities,
their

administrations
trustees
and

and

never

can

boards

forgiven

should

family.

1. The

women

welfare

building
program
m
possible way should be car¬

every

ried out by private business.

There

cilities

the

are

exception

rule

rather

the

than

American

home.
Practically all of these
homes have been built by private
enterprise. Government standards

Housing

of homes occupied

essential

such

program.
We should

also be mindful of
the fact that when an individual
builds his own home, either di¬
,

rectly or through private contrac¬
tor, he builds something a more

local communities. The
banks And
building and loans are

locally

duction in certain fields of
build¬

ing materials because of price in¬
creases

permitted.

housing

czar

has

greatly

because that which is needed to¬

effort to

day to solve the housing problem

now

inter¬

It has been
so

by the

now

been

der

private

ownership and pri¬
vate construction.
We have an

made

istration that the American
people
completely lost confidence
in not only the
law, but in the
political manipulation and admin¬

istration of the law.
i

to build

some

homes

1945

seventy-five thous¬
hnudred

one

thousand

and

day

trying

find out what
their government will
permit them
to do, or furnish them.

program that permits a situation
like that to come about. I am ad¬

vised ,that the export of lumber is
increasing the first quarter of this
year over that which went out of
the country last year. A
public

building

administrator, such as
has been appointed, can have but
one function to
perform, and that
is to break the bottleneck in sup¬

plies.

courage,

will

take

the

fearless

the. ability and driving

energy

Jeffers

the

man

rubber

William

paramount.
The individual
citizen of America is not one of a
of Americans.

mass

For him, his

rights, his opportunities, his,

joyment, the: American

en-

govern¬

mendable, but it is only

ment

was
organized . and must
continue to be his servant, subject

to his guiding will. • The lure of
a good family life -and of a home
and

yet a better home—is
.

one

the

noblest, motives of our
American community, life.
That
i; ambition
to
own
one's
home
America dare, not injure, for gov-

from

the

mills

America

and

industry start
will

not

and

until

ernment cannottregenerate it.
It
is
something .inherent in
the
Aroerican.heart and.souL and con¬
.

science and upon it we must build

later.

think

that

Undenvriter

tion as contrasted with
private
operation. This contrast is mere
marked when there is a

tions

and

goverpment regulation

prevents the free flow o|
materials and rapid reconversion
and
in
promotion
production.

Those

are
the bottlenecks,
to be opened. There is, of

shortage of labor

an^ Here 4s

field in which the

virtues of the Republic

ought to
Housing calls
private
enterprise. Opportunity with gov¬
ernment encouragement must be
established.
There is,
reassert themselves.

for private initiative and

sufficient

government power today to direct
the- flow of the available mate-

continued

program

on page

i<Vl^

public policy.
■
housing problem is to he solved; i
The local problems of housing
There are already too many
require d i i Ye t en t/Approaches. czars,
directors,
regulators
in
There are some fundamental prin¬ Washington for the
good of the
ciples that must guide the public housing program.
There is ade¬
housing program at this time if it quate legislative Authority for
is- to ultimately effectuate the government
encouragement
to
.

good that

we desire.
V
I am excluding in.this consid¬
eration
today the problem
of
-

building houses.

Each house that

is built means

home for

one

some¬

and in most cases—a veteran.

housing for the needy .and those There Is not enough ability in all
who are dependent upon their the bureaucratic
organizations of
government for the. necessaries of
Let us consider a few of the
that must be re¬

life.
i

fundamentals

the Federal Government to mesh
the various detailed needs of the

communities

For Bankr*rBrakers^-Bealers

America

into

Only

Trading Markets in
-

A. S.

Sb».T«»No»^
and Insuran

Campbell Co. Inc.*

Bank

Metal & Thermit

Corporation*

International Cellucotton Products Co»t
Automatic Canteen

Company of America

The

FIRST. BOSTON
New York Hanseati c

CORPORATION
NEW YORK

Corporation
■

■J:i i zo
New

Broadway

;;i:x

York-5New "York

Ttiepbone: BArclay
Teletype: NY

584

5660

BOSTON.
'-.■•
■

,:.r

NEW YORK

•

Executive

•

BUFFALO

•

Offices

CHICAGO

•

PHILADELPHIA

•

BOSTON

CLEVELAND

.''•fi*: /.v-

PROVIDENCE

•

first

coursej,

which will be

taken care' of in
my judgment
with the release of materials
and
with the
returning of the veter¬

scarcity

of materials as there is
today.
2. There must be less govern¬
ment regulation, and more
gov¬
ernment
encouragement if the

supply-

which

Distributor

and

ojf

available.

Financing

those

factories

The greatest handicap that pror
duction has today are the restric¬

Corporate and Public

figures generally mark the rela¬
tive efficiency of political opera¬

tem7

the wheels

to turn that

units have been built and sold for
figure of six thousand each or

years

porary expedient.
The material
for
building homes must flow

under.
In the Spring of
1943,
Defense Housing Incorporated, a
government agency, ^undertook to
build tvvo hundred units in the
seventy-five hundred dollar class.
These were completed- nearly- two

been

army. and

for the building
Temporary housing far

are

has

supplies

program.

foreign countries during

step

releasing the

cilities have been made
availably
for immediate needs. This is com¬

/1 note in the

Washington Daily
News of Friday, Dec. 14, that
enough lumber has been shipped

navy

politically vicious in its admin¬

America.;; The article
appointed.
The very name is re¬ further
says ' that
higher prices
pulsive to; the American
public could be secured in the foreign
and yet it is
typical of the bu¬ market than OPA would,
permit
reaucratic
attitude- •• toward the here at home; With the
crying
people of America—that they must need for more and more
material
be pushed
around, directed, re¬ in America, no' one can
justify a
stricted

regulated. We have
has increased in a marked way just fought a horrible war
and
during the war years. A million gloriously won it to do away with
housing units have been erected that kind of thing and permit
during war years.
A great part our people to live their lives
of this construction has been un¬ father than
grope about from
owners

second—labor. <;A

inept in its work,

occupied by the owners', It is most
encouraging that the percentage

in America is first—material
and

fering with the housing program'.

and

has

place to live. Something
his personality, his individu¬ example here in Columbus that
ality; bis aims and ambitions in private Ownership ' has proven 7 Through the power-mad
bung¬
life enter into the structure.
It speedier, more efficientand able ling Of OPA, we now have a
ties him mote closely to his
home, to produce in greater quantities shortage of butter and a surplus
to the community and to the na¬ than
any government agency.
In of - milk, and butter fat. This is
tion of which he is a part.
That 1940 in a city of three hundred just the most recent mistake of
factor must not be forgotten in thousand
people, private builders this political institution of gov-'
determining public policy.
built seventeen hundred building
; American Tife .has. been built units.
In 1941— fourteen hun7
around. the. individual, his family, dred, and since 1940—four
thou¬
bis home,; His individual rights sand two hundred
fifty-four home
a

forward and is

bulging have

in America.

fixed have protected the
public
interest.
Approximately
nineteen million of these units are

uniform policy that will be
in the
public interests Control and
regu¬
lation should be brought to the

over :

the

which

handicapped Americans'
move

thirty-seven with money—ready to be used.
Ap¬ Owners and builders are ready to
proximately thirty millions of proceed and will proceed as soon
these meet high standards of liv- as released from
the red-tape of
ing conditions.
Electricity, gas, Washington. OPA recently, in a
refrigeration, adequate water fa¬ bulletin, boasted of increased pro¬
; are

million homes

not, unless: ; they do
everything within their power to
provide the facilities to make pos¬
sible the best educational pro¬
gram for the returning veterans.

than

ernment,

Building Program Under Private Enterprise

•
'

SAN FRANCISCO

•

HARTFORD
\-:4sh

; v

SPRINGFIELD

579)

Speaks After the Tu*n of the Year

Business aiid Fiitaiice
both in performance and appearance,

rugged trouble-free

still retaining their

characteristics.

the luxury of a few is
majority of those who own their
own homes.
This is not only true in the new home mar¬
ket but thousands of existing homes are being converted
to gas heat through its easy adaptability to almost any
heating system.
Even with Governmental restrictions
covering the sale of gas heating equipment during the
war years, installations have increased 37 % since Jan. 1,
Gas for house heating—once

1941.

nized.

■

President and General Manager,- The

tures

refrigerators, and

water heaters. The rapid expansion of our business
waits only for the appliances to become available which
customers want and which will be put into use as soon as
manufacturers can supply them.

picture of airline. transition
,TU.
.war-time to *a peace-time.
econoiriy is an absorbing one.
On -the one hand, there ate- Such /

increase in the use of electricity. -The .elec—
irical industry is young,: growing * and nothing now in
sieht chh challenge* its Place, atraioic- U\
sight can challenge its place, atmoic
available

comes

used

will be

now

source

assume''it/
of heat in

special type of boiler in much the
in which we now use coal.
However, we will still rely on the?/
initiative
of
private
management
and the -good cooperation M em/;
ployes to lower costs as deserved by
the /greate* customeruse of ^ectri/
city, Present investment in turbo¬
generators, transmission and distri¬
bution equipment, motors and other
customer appliances would not be
changed by the use of atomic energy,
as we
now
see
it. We hope when
a

COLA G. PARKER

Kimberly-Clark Corporation

market for all

Industry wiU find a ready
produce in 1946.

The Paper

that it

can

will make for this re¬
sult are many and varied and will hot operate with com¬
plete uniformity on all of the myriad of grades, Sizes,
weights and qualities of product produced by the indus¬
try. However, what is said here is true of substantially
all major products and also of most special products.
Furthermore, the flexibility of the industry is such that
The forces and influences "that

drop in demand for one

the production and use of paper

For almost four years
have been

needs
diverted from

Due to tremendous war

controlled.

production was

much of' the industry's

Government and war indus¬
tries.
Inasmuch as permissible use in many'instances
exceeded production remaining after satisfying'Govern¬

peacetime customers to the

ment and war

industries' needs, inventories have been
handset producer^ and

(

manppwer

ages

in short¬
materials further limiting :the producers'

Marysville Power Plant started

before the war.

the

same

order

that

modernize

automobiles,

During

reconversion periods.

papers

Not

circulation and

rigidly—by

space.

con¬

course

myriad daily

pipelines be

filled—mill

be supplied at the

same

industrial

and consumers stocks rebuilt—but the

uses must

use

of electricity.

for 1945 were only 12% less
Detroit

time.

Since the shortages of paper and board of all kinds

and

/
/
the country we are

than in the United States and Canada

intimate acquaintance with

offset a decline in
.

than in 1944.,
a

great and important

part of industrial America. In common

cannot look

fill all the void here immediately.

and

Gross sales of electncily

its environs are

have been even greater throughout the rest of the world

to imports to

benefit to our
| have of

demands

demand of residential farm

and commercial customers helps to

stocks

and the end

decreased, the decline has not been serious

the continued growth and

Household

of all kinds have been in short supply;
only must the

merchant stocks,

advertising

industry

with the rest of
lit

not without our problems, but

fear and we face the

I'M) ER WRIT E R S

...

ouir

them gives us no cause for

.future with confidence.

managements and stockholders must

ton-mile and passenger-mile
revenues due to the already referred-to cuts in mail $ay
and passenger fares; the declining load factors wmch
will become the order as plane capacities increase; the
extremely large investments required for new aircraft
and for the development of ground facilities; the cost
of training many thousands of new personnel, and the
substantially increased sales, promotion and advertising
expenses which will be called for as the airlines move
into a highly-competitive "selling" era.

During the war years, airlines could not help but make
The problem was not that of obtaining pass¬
enger-cargo traffic; it was one • of attempting to ac¬
commodate the s most essential part of that., commerce,
and of endeavoring to maintain a reputation for courtesy
and service while turning other business away. Loati) §
factors literally "hit the ceiling," pften running close to !

money.

100%^ over/section^ of

theibusiesivtrariscolitinentai airil

routes. Mean^ile^ costs did-no^rise to the same extent;! |,
The airlines,, which turned over approximately half ;
their fleets to the government for military use, had to
learn new tricks of attaining maximum utilization of
the planes

left to them;

Many peacetime frills of air-i; I
with; "selling" costs were

line service were dispensed

de- I

spite war-time increases in the cost of virtually every¬
thing, by the reduced size of airplane fleets.
The change-over to peace-time airline operating con¬
ditions, while still in process, is abrupt in view of the
many major projects to be carried out. It is gratifying;
however, to know that the public will be treated to a
rapidly unfolding picture of airline developments, with
all the benefits which those will bring.

Right now, airline cruising-speeds are being increased

Planes a*e going up $

from 21-passenger to 44-passenget versions.

m «ize

tWs summer,

cruising speeds wm, go-V again to 3(W/

miles an hour, with planes carrying from 52 to 70 I
passengers plus cargo. Coast-to-coast airline travel and

% ^SS[ i

Passengers will ride m pressurized cabins which will pro4 f
ne
vide low level comfort at upper altitudes. Use of the
airlines for both business and pleasure travel will be in

(Continued

DISTRIBU TOR S

—

(

tro^^and'htherTaids; which ;will make possible>signi£ican advancer in the r^gulnrity-attd 'efficiency: of >airlin^
schedules; H) The' rapid* development;of .our domestic. e
arid interhatioriabairway sysiesxi;i5XThepuihngpower
»
of lower air passenger fares and shipping rates; (6) The
approaching ability of "the Jairlines to„ provide more {had ,
adequate space for, their patrpns; ami 0J The return
i
frorij military serdcesof experienced personnel.
v ,, ,•
On the other hand, there.are such counter factors with
$

eliminated, and operating expenses were held down,

financial condition.

war-time

While

business.

able to retire , a

was

litigation is both a relief and a

of rate

during their shut¬

Newspapers and maga¬

zines have had to control their usage

trolling

Company

;

End of the Federal excess profits tax

All industries must use paper even
or

large program is underway to

portion of its mortgage bonds which gen-

$19,000,000

nevertheless very real.

down

the

1945

erally improves its

lacking, during the war.

wholly

and

obsolete street lighting systems in many

some

communities served by the Company.

production of which was
But the demand is

radios, kitchen equipment, etc.,

expects to build about 175 miles of farm

The Company

lines during 1946

advertising will not
now be printed; nor will goods sold without wrapping
be recalled to be wrapped. A backlog of demand exist?
of

the

Obviously, last year's news and

not

construction project in the 1946

single

kilowaft t&rbo-

ability to supply permissible demands.

but

This money will bring

generator and one boiler, at the MarysviUe Power .Plant,
south of Port Huron. This will complete the extension

both here arid in Canada resulted

raw

James W. Parker

budget is the installation of a 75,000

of
01

concerned as reduced per

largest

?m7fVrnJ off of foreign pulp sources ana snortages
onutting nW /if fnreiffn nnln sources and shortages

trans-/;

good Edison service.

be
The

gr^Qy /

air

for serving
electric and steam
•service to new customers, and in the Port Huron area,
-to gas customers. \,Jt will build needed additions to our
substations and transmission lines, add equipment to our
power plants and, in general, keep our whole system
in condition to give what we have always considered
to

the

which airline

spend

its customers.

materially reduced both in the
consumers.

about $12,000,000 during
1946 for improving and increasing facilities

acceptance

peace-time applications are avail¬
our Company will be among the
first to use it.
/
The Detroit Edison Company plans

demand,

The

fetorsisrU)

public;, (2) /The
i
acquisition of heW, * * much ; faster/ '?*:
W. A. Patterson
more comfortable and more efficient /
aircraft; (3) Theavailability of xeVolmiQharyhew elec^

able

grade quickly leads to a shift

production to another grade in greater

increased

its

„

portation by

Way

President,

.promising
'•

included, Fox when ibis ;#>e/|;

energy

expansion pos-.

The

from
^

to a sharp

that

make

sible.

Detroit Edkon Ce.

prior to recent shutdowns,

The trend locally has been,

gas

involved,"

Every/airline,' feeling the thrill of "
operating under steadily 'relaxing
war-time restrictions, is 'preparing /
feverishly for the immense expan- :
sion of peace-time air commerce. By
the same taken, every airline man- '
agement is confronted with the im-r
mediate necessity for large expendi-

JAMES W.PARKER

Their value is continually more widely recog¬
There are large backlogs of orders for gas house

heating equipment, for gas ranges, gas

wholly

and of the costs

and its prod¬
be pro-,

sufficient to absorb all that can
duced during the coming year.
- ;
*
ucts will-be

service are in de¬

Our product and our

optimism.

mand-

Gas

me that
breakdown of

these forcesr convinces

analysis of all

barring a complete and general industrial
sustained duration the demand for paper

Kitchen—being introduced by
the gas industry through national advertising-^-already
has struck a responsive chord with millions of women.
The popularity .of gas for .cooking, refrigeration, and
water heating appears to be greatly enhanced.
.
.
We view the future of the gas business with confidence
and

in¬
in¬

are

/:/

The New Freedom

understandable enthusiasm over the ex^
tremely bright prospects for air transportation in this'
hew year must be tempered somewhat- by an * underr
standing of the tremendous development tasks which face the industry
A

also short of wood. The time lag between:
cutting of wood and production, of pulp and paper is a
further drag on increased production.

tact,

President, United Air Lines

„

Manpower is still short in the woods and reports
dicate that foreign producers, even when mills are.

within reach of the

now

W. A. PATTERSON

Expansion plans have been announced by many Pro~
ducers and undoubtedly. there will be more such an¬
nouncements. But it takes time to build mills and equip¬
ment and they must be supplied with raw materials be-;
fore they can produce.
,

(Continued on page 576)

Thursday, January 31,1946

& FINANCIAL CHRONICLE

THE COMMERCIAL

578

—

on page

580)

DEALERS

Net markets to institutions and dealers on

RAILROAD BONDS

UTILITY BONDS

•

REORGANIZATION SECURITIES

-»J.c ur*v„s

BRITISH and OTHER FOREIGNS
s\

■

•

»■

'■

Quotations Furnished—Inquiries Invited
/•-

HIRSCH & CO.

•' V'.

Successors to HIRSCH, LILIENTHAL & CO.
Members New XorJc Stock Exchange and H&ther Exchanges

NEW YORK 4, N. X.

(CLEVELAND 14, 0.
Main

2933

—

Teletype CV 190

LONDON, ENGLAND

25 BROAD STREET

1010 Euclid Avenue

—

TELETYPE NV 1-210

GENEVA (Representative)

CHICAGO 3, ILL.

135

HAnover 2-0600
••

•/.'

South La Salle St;;

Stat© 8770

—

Teletype CG 1219

•

Direct Wire to Chicago

and Cleveland

;

Volume

163

Number. 4460

THE COMMERCIAL & FINANCIAL CHRONICLE

£
serving

OfficersNamed for f
^

•

* -V-/*-r
-.

its

*V'**;

meeting

•... • t

•

;f''

■

1 Vv \

1946, the by¬

laws of each branch were amend¬
ed to provide for the designation

A. V

Jan. 10, the

Major in the U.

Effective Jan. 1,

SI. Louis Reserve Bank
v v

.as

Af my.'

Vice-President of the bank as

board of directors Of the Federal

Manager of the branch, instead of
Managing Director. * "
James H. Penick, President of W.
>&T6 fill remaining vacancies, the
B. Worthed Co., bankers, Little
St. Louis board appointed the fol¬
Rock; Ark., to represent the Eighth
as
d i re c t ors
of the
District on the Federal Advisory lowing
Reserve Bank of St. Louis selected

branches:

Council during 1946. He succeeds
Ralph C.v Gifford of Louisville;
'Ky,.,' who has served three years.

Jt(

.,'.

■

Reopens Chattanooga Br.
:

Elder

Company,
York

Broad¬

members

of the New York Stock

Exchange,

which Tvas inactive for the dura¬
tion

the

is resuming its

war,

brokerage business,
It has opened

branch

Building,

in the

Louisville Branch: H; Lee Coo¬
parent bank A and
branches.- They are as follows: ■> per, President, Ohio Valley Na¬
tional Bank, Henderson, Ky., and
7
Parent Bank: Chester C. Davis,
A.
C. Voris, President, Citizens
President; F. Guy Hitt, First ViceNational Bank, Bedford, Ind.
; ;
President; Qlin M. Attebery* ViceMemphis Branch:: H. W. Hicks,
President; Clarence M. Stewart,
Vice-President
and
Secretary; President, First National Bank,
Henry H. Edmiston, Wm. E. Peter¬ Jackson, Tenn.

Building Program Under Private Enterprise
(Continued from page 577)

rials-

into

the

channels.
enough home builders
in America to do the job. There

who would regiment them,
them about, use them

There

the American people as a mass—

proper

are

sufficient

shift
according

local

authority to
protect the public interest. There
is

We must-again encourage pride

needing homes to establish their
families, to own their homes.
will

political whims of personal de¬

sires.

desire here among all those

of production and release the full

Chattanooga, Home owning has continued and

Tennessee, under the direction

the

A
■

City,

James

Ljoyd Spen¬
President,,
First 7 National
Bank, Hope, Ark.
.
;

New

way,

Little Rock Branch:

■

cer,1

The directors also appointed of-;

ficers' for

Elder. & Co. Again Active

579

force of competition.

;co^

way

can

secure

Rhoades

Co.'s

office

that

those in every bureau and

com¬

home loving instincts,

mission

city.

upon

girders of the Republic.

who look

once,

the under-

A. F. Bailey, C. A. Schacht,
W, B. Pollard^ Vice-Presi¬
dents ; S. Fi Gilmore, Frank N.
son,

>'-r' 7

'&K

Hal.

G. O. Hollocher, Howard H.
Weigel* J. H. Gales, and L. K. Ar¬
thur, Assistant Vice-Presidents;

Lewis

The

-V., s ;

U'l

,7^':

Suspended

Securities

and

Exchange

Commission

has announced that
effective Jan. 24, it has suspended

Carstarphen,7 General

H..

Action

for

Counsel, and Jos. C. Wotawa Gen¬
eral Auditor.
,

fourteen

dealer

days

its

revocation

ere

interested in

issued

Little Rock Branch:

•

A. F. Bai¬

Branch:

Louisville

Chas.

High Grade

against Norris & Hirshberg, Inc.,

Atlanta,

ley, Manager; Clifford Wood and
Clay Childers, Assistant Managers.

Ga.

the

Commission

The

stated that it had

been

charged

company,

informed

with

cre¬

Public

Schacht,; Manager;' Fred Burton,. ating
an
internally
controlled
Stanley B. Jenks, and Lee S. market in which it sold securities,
Moore; Assistant; Managers;7 and
them back and resold
Earl R. Billen,i Acting; Assistant, bought
Manager.

.f-■

Jos.

Wotawa

view

Laird Bisseli

General Auditor to succeed L. H.

Baileyj^who retired

Circuit

Decembe^y:

Laird,

Court

Bisseli

''V,"'

?t\J 7'14^

'lV

Admit
Meeds,

120

bers of the New York Stock

appointed Acting

has

v'"
'aK,

Walker has been

Spencer Trask &. Co

Ex¬

change, will admit Fred D. Wild-

been

Member* New York Stock Exchange

hack to

General Auditor until the return

Wotawa,, who

preferred stocks

Broadway, New York City, mem¬

Mr.

'[:<•'"••• "V

re¬

after,. 27 years'- service. LaurieT.

.v:*''V

^\ :SXyi'/■

Appeals.

elected

was

before

order pending

Utility and Industrial

•

them at rising prices, would seek

Memphis Branch: W. B. Pollard,
Manager; S. K. Belcher, C. E.
Martin, and H. C. Anderson, As¬
sistant Managers.

stay of the

broker-

order

Members fiew York Ctirb Exchange

partnership

Feb. 6.

,25 BROAD STREET

135 SO, LA- SALLE STREET
CHICAGO 3

Telephone HAnover 2-4300

Stocks

•

Bonds

Commodities

•

DEALERS AND BROKERS IN

U. S. GOVERNMENTS

FOREIGN
;

Bell System

Albany

Telephone* Andover 4690

Teletyper-NY 1-5

Glens Falls

Boston

Schenectady

Worcester

MUNICIPALS

AND

CORPORATE BONDS

AND

Special and Secondary Offerings-

Private Wires to Branch Offices and

Corespondents in Princi¬

pal Cities in the United States. Foreign connections in Europe.

HUTTON

8c COMPANY

ESTABLISHED 1904
MEMBERS

NEW YORK STOCK EXCHANCE AND OTHER

PRINCIPAL SECURITY AND COMMODITY EXCHANGES
'

6! BROADWAY, NEW YORK 6
BELL SYSTEM TELETYPE NY
'

listed and unlisted

WHITEHALL 4-2100

CABLE ADDRESS: TONHUTEF

\
;

1-1675

IOS ANGELES

SAN FRANCISCO

Atbu(|u«rque • Beverly Hills : *' v 6 Paso •
Pasadena r Phoenix * San Diego • San Jbse

Hollywood

long Beach

•

Santa Barbara

•

Santa Monica

securities

Oakland
•

Tucson

Reorganization and
Francis I. duPont &Co.
Stocks

Bonds

When Issued
Bonds and Stocks

Commodities

Underwriters, Distributors, Dealers in

Complete Arbitrage Facilities

CORPORATE AND MUNICIPAL SECURITIES

Christiana Securities Company, Common and Preferred

MEMBERS
New

York

Stock

Exchange

Chicago Board of Trade

New York Cocoa

New

York

Curb

Sutro Bros. & Co.

Exchange

New York Produce Exchange

Exchange
•
New York Coffee & Sugar Exchange

Members New York Stock

New York Cotton Exchange
-■

New Orleans Cotton Exchange

Tel. BOwllng Green 8-6000

Wilmington, Del.
Rochester,

;

NEW YORK 5, N. Y.

Cable:' RHetpont.

Teletype:

NY 1-1181

i ;,

Philadelphia, Pa.
Charlestpn,

Exchange

120 BROADWAY, NEW

ONE WALL STREET

S.. C.

other

Eugene M, Thomasson, who was hearthstone of the Republic, We ment* retain individual freedom
recently manager of Carl M. Loeb, must drive from government all and foster the home
owning and

and

full employ¬

Telephone REctor 2-7340

YORK 5, N. Y.
Bell System Teletype NY

1-67

THE COMMERCIAL & FINANCIAL

results

(Continued from page 578)

CHRONICLE

that follow in the waive of inflation

and have

possibilities for shippers.
'
Meanwhile the airlines already are hard at work de-t":

veloping and adapting to their operations
technological aids born of the war—aids which

LOUIS PETRLr^,' i,: f

s*:

numerous

The oil industry became one of America's great insti- ....
•possible such things as routine .automatic instrument;^tutions for service to the'public because of its competing
•operations over the airways'and into airports. Jyyt; tiVe nature. -If this industry is to advance it must be
Mahv more cities are-being added to the domestic air"
released from the OPA economic strait-jacket.; This is
"

what may

will make ;

the

airlines -are gearing up for
chaotic race for traffic, but which, in

international

And

-routes.

wo.

event, will mean new opportunities for people to
go places and see things in a hurry.
-•-.■-•J
~;-The airlines have entered that much-heralded Age of

body exercises
.any

the

given an air transportation system" so' vastly
i: that it will bear little resemblance to what
,

Improved:

President, The Oliver

'•

Corporation

-.;

terials and parts

•

1946 can be one of great opportunities for
petrloeum industry, or it can become one of disastrous consequences, depending in large part on de-

;

cisions to be made in Washington,

Prospects are bright for ample
supplies and steadily expand¬

with

the

best

Washington officialdom
linquish wartime powers, ;

re¬

particu¬
larly in the field of prices, and a

by the industry have not been

newly-evidenced desire in that quar¬

Alva W. Phelps

subject all industry to controls
which, if effectuated, would amount
to collectivism.
Unless overcome—

forcing complete shutdowns of plants in many instances
and forcing widespread unemployment in. inany midwestem'citieswv-:^:^:://;^
•

quickly—these trends
will create an unemployment prob¬
lem in the next few months that will
strangle in its infancy a period of
J. Howard Pew
post-war prosperity and well-b
g
for the American people.
overcome

get OPA off its

ment.

■

in maintaining

tities since 1941,

;

for
There are
oil supplies that a freely-

problems attendant on
functioning market will not promptly solve.
Continua¬
controls will only intensify old problems

tion of OPA

and create new ones.

looked
users

wholly unrealistic manner.. Ceilings have

omy-^an economy that
tions which exist today.
We have heard

•

which

i.'*■<.*

I't

1 •»

type of advertising campaign which it hopes will aid in

■

;

war;

price became less of a factor and consumers began
'

to demand quality.
]
At the same time, the

•

have been forced to operate

for

not been over¬

preparation for the future, with the result
equipment will have available to them

facilities in

dustry, because they? mean*better. wines;,t

W. T. PIPER
President^ Piper Aircraft Corp,'-

During the

ahead we look for a continued gradual
production of light aircraft;-At the mo-

year

increase in the

exceeds the supply but it is
question of time until' the '
n
^

ment, of course, demand far

only

leading manufacturers wilLbe«able
to reach the optimum production
capacity.
We

recently

Piper

tured

and

delivered

manufac¬

Miami

the*;'

since V-J Day.
That in itself was no mean feat and J?
I salute our indefatigable. workers
who
threw t themselves
into our •
peacetime operation with the same ;
zest that 'helped to establish our en¬
1,000th

Piper Cub

viable war record.

that the 1,000
during ,the past
represented ^.1,000

I would like to say

Cubs manufactured
several

months

profitable packages. However, such-;
is not the case.
The production of

ponent companies such as Oliver appears to be a bright
one. for the years immediately ahead, if work stoppages

the part of OPA and its
.

are

double talk,

designed to deceive and. confuse the jpublic.
It; is a specious effort to- put the cart before the horse.
Actually, price increases are one of the many disastrous

held

minimum and if supplier

industries are

able to operate regularly so that a steady flow
terials and parts will be available to us.

mass

scale requires

of ma¬

methods. Mass methods require

training in assembly line man- 7

Againnew jigs, heavy ma,
chinery and most * of' all learning- through experience to maintain a constant flaw means lots of money.in'the be¬
Ufacture;

ginning.

" 1

Once however our methods have been per-];
(Continued on page 582)
...''3 •
.

specialise in all

Industrial Issues

Insurance and Bank Stocks
■

whole and its com-

mass
mass

The future of the industry as a

Public Utility Stocks

Investment Trust Issues

Securities with

and Bonds

SECURITIES

TEXTILE
a

New England

Market

Frederick C. Adams & Co
,7

Specialists in New England Unlisted Securities
24 FEDERAL

STREET, BOSTON 10

ESTABLISHED IN

Telephone HANcock 8715

and; modern/-

nation-wide' merchandising ot the product.

airplanes

industry.

sale, of producers own brands

Producers thus were able, with this new;. &
demand for quality* to bottle their; own wine in Califor- ?
nit under; their own supervision, .and to assume .respon^
bility*
•
• •
•
i
>:
These new factors augur; well for:the;fiiture of the 1
skyrocketed.'

instances,

of farm

the history of the

propaganda supporter, the Office of War Information,
to the effect that high prices' cause inflation.
This is

the strongest distribution and maintenance

lias little relation to the condi-

much talk

Sales and service organizations have

■been set, for the most part, on the basis of our 1941 econ-r
1

many years.

result
of price control relationships between fuel oil and coal.
;
If continued price control were necessary—and em] phatically it is not—the OPA hierarchy has gone about
a

farm

profit on

Already we have witnessed the

dislocation of kerosene and fuel oil supplies as a

its work in

equipment mani5actin,ers already have
begun large scale modernization programs within their
own plants. The rehabilitation and re-equipping of plants
will move forward rapidly in 1946 and the industry will
be a large customer of the electrical, tnachine tool, and;
other capital goods industries.
The modernization of
plants should bring production efficiencies to offset the
lower labor efficiency with which all industries are faced
today and thus help to safeguard the Harrow margin of
Most

price ceilings on petroleum and its products.
,

has concentrated its effort toward pro*-1
during, as many units as- possible to meet the emergency
needs of farmers, whose equipment rather generally is
over-age and practically worn out because of the lackof replacement units and parts in any substantial quan-

Consequently, there no longer exists any reason

;

Petri Wine- Company this spring is launching a new

but the industry

rising standard of living.;
compromise with this problem.
.OPA was
created as a war agency at a time *when all production
was dedicated to winning the war. Supplies were grossly
inadequate for civilian demand and thus OPA served a
inecessary purpose. But today the war is over and the oil;
industry is amply able to produce all the requirements of
four civilian population as well as those of the Govern¬
instrument

7*^

manufacture has been started in a number of

industry—cannot
back, it will destroy us as an industrial

the-petroleum industry—and all

There is

and tractors available to purchasers in;

quantity in 1946 Will be?;substantially; th£ sami te
UlUUtlvCU
UC1U1C
IHC
Wdx
\V4SH/lilv lIllllV/1
illlRly V v
produced before the- war, with some minor improvements. Improved products are under test and small-scale

;

Implements

overly

plentiful and virtually no stockpiling
has been possible.
A isteel strike
would seriously affect our activities

ter to

and

toward these

war

popularizing various types of wine., i This campaign has
for its theme* "Don't Buy One, Buy Two!" and stresses
the fact that guests and family: members have different
plements faster to meet the demands
tastes in wine.,*
—
A '
'
•
' '
of our customers.
Two wartime changes in consumer buying habits have
Various types of steel used widely - revolutionary import: for wine producers.
During the

products ever manu¬

was

tion,

plants.

prices which they are
both willing and able to pay.
But
overhanging this
favorable
outlook is the continued reluctance
factured

•-

made before
objectives. In
Louis Petri
1934, the national consumption of
wine was
.26 gallons
per capita.
This rose to .85 gallons in 1942. A proj ected consumption
curve would pass the gallon-per-capita mark by j-1948,
and spell an increase of 400% since the end of Prohibithe

will become avail¬

important" bearing, producing
Bearings have been short for
several 7 years
and indications are
that the shortage will continue for
many months to come and handicap
us in our effort to turn out more im-/

Steady progress

Moreover, the Oil in¬
dustry is ready to provide consumers

ing markets.

goals

wine types.

result of the strikes

crude

the
con-••

in America are to in¬
consumption and to create an
appreciation of the uses of various

A large user of ball bearings, the
industry has suffered a setback as a
in many of the

;

crease

able in larger quantities and permit
full-scale production activities.

The year

the

millions

As in the past, the wine industry's

great

the hope that badly needed raw ma¬

President, Sun Oil Company

from

return

impossible to foresee today the defi¬
end of the shortage which ap-i
peared during the war.

industry has - awaiting it in 1946,'
only by its own ability to produce,
v
The industry was among the first to complete conver>,
'
sion from war to peacetime product
manufacture, and is marking time in

J. HOWARD PEW

nite

a' volume limited

has gone

the

forces

sumers.;..v7■■
i In the face of these factors, it is

The farm implement

and

armed

alvaw.phelps

one v

mands

;

probably cannot look too hopefully for
soaring profits and airline managements-may ^experi¬
ence some headaches.
But the public at large will be

of life and death over all or

power

of itsunits.J -

stockholders

In the face of that prob-

of. .the largest grape
history, ^the demand, for * ^:<?.;■
promises a steady increase, vf f
•:Favorable
inventories,"'therefore*
must be measured against higher de- *

ingenuity. Airline

Flight, with characteristic energy and

before.

1 problem for all of us.

marked

crushes

wine

lem, all of our other difficulties pale into insignificance, ';;
for no industry can prosper when any governmental

any

•

to do with the cattse of inffctibJH:
President* • The: Petri Wine Company
inflation which threatens «s were •_ The ratio of inventory to demand creates a most :fa«1W
'
forable position for California^ wine industry.
;, :r:
\>^^ed in the unsound and imprudent national policies®
While the wartime
wine
of the last 15 years. There is nothing OPA through price
shortage ^ apparently has
;
;
; passed
its acute stage,;' and *>19450^
control can do to prevent that inflation, v J .
s

air freight developments in equipwhatsoever
■Went, schedules and rates will spell hitherto undreamed.iThe-germs of the
full swing. Also*, new

1922

Teletype BOston 22

Volume 163:

Number 4460

198, in

Annual

Meeting of N. Y.

Meeting

Thirteenth

the

expenses
gross

;

The

Bank's

resources

total

now

$42,406,293.54.
Referring; to the record of the
Federal Home Loan Bank of New

Annual

Stockholders

Operating

were-1*M% of

year

against 14.4% in 1944, ac¬
cording to Mr.- Fallon's report.

Jersey and New York atthe

THE COMMERCIAL & FINANCIAL CHRONICLE

income

Representatives
of
over
300
hiember institutions in the States
tented

1944.

for the

Fed. Home Loan Bank
of New

■

York; for;1945, Mr. Fallon stated
that "in. a difficult period the

the Federal Home Loan

Bank

members have managed their in¬
stitutions with skill and ability."

New York at the Waldorf-Astoria

Hotel on Jan. 24. Nugent Fallon,
President
of
the
Bank,
an¬
that

nounced

its

the

$691,679

added,, "practically all mem¬
institutions now enjoy greatly

ber

enjoyed
year in 1945,
of $1,007,904
1944, and net
against $479-

profitable
with gross income
against $751,586 in
income

Bank

most

increased

581

While

congragulating
ourselves shifting
of savings,
decreasing
fine showing of 1945, we mortgage interest rates, increas¬
recognize that 1946 and the ing overhead and intense compe¬
following few
years - will
test tition for first-class home mort¬
management to a point seldom gages." \;
« ,;
v
..
'
before approached. There is, how¬
The Federal Home Loan Bank
ever, every indication that our of New York is one of 12
regional
member institutions are qualified
banks
making up the Federal

serve

the

successfully meet all problems,

Home

including, a varying value for "our

Loan

twelve banks

dollar, the rapidly .accumulating

District

effects of

tories and

tax,

our.

progressive income

extensive

social

Bank

serve

gregate
bank

the

The

are

sav¬

364^11 embers of the Federal

Home

Loan

Bank

New

York,

which includes in its District New

Terri¬

York,

Island Possessions.,

Jersey,

New

and the.

The banks provide a source of re¬

programs,

The

$9,000,000,000.

banks and insurance companies.

48 States, the

Columbia,
our

over

system's members

ings and loan associations, savings*

The

System.

credit for nearly 4,000 mem*
assets ag-^

institutions whose

ber

must

Puerto

Rico

Virgin Islands, had assets

totaling $911,884,466 Dec. 31, 1945,

liquidity and manage¬

ments have

displayed

high de¬

of conservative sound judge¬

gree

ment

making mortgage loans.

Equity Financing
in 1946

opportunity for balancing capital structures

; Vy*'-v\ f.

Eastman, Dillon & Co

-r

Ninety-five percent of

V--

1945

;'•/'£*

v''*.

financing has been in tlie

form of senior securities .and

only eighteen percent of

the tdtal

This trend toward senior

securities
»V* v*
:

*V7'

>!»•■

vV*

■■

>'<

for new money.

was

stimulated

was

iV'"'1*"1''

>•

••

Lower

taxes

by high wartime tax rates.
1

*/-v^

• ■

*; .-*•?■;

V" •

prices'should stimulate equity financing for

requirements. Thus

f»,

A- A'v y "T ,»V-V

1 "•

•

1946 and the present level of stock
new money

unusual opportunity exists to

finance with bonds, preferreds or equities for the purpose

•,

PHILADELPHIA

balancing capital structures and keeping the ratio Of
gross

sales healthy.

■v-'
h/''
.

other

side
.ra

period, to
" 7-

-■;

by side

our

•■-.-•7". 7 :..y "4-Jv .'7'-.7

7"'

'•

•

■•.'

"...
CHICAGO

•

leading

VA discussion of your
our

T-:

:,v)

~
,

•

» >

> •

,-:.v

' V "i ci V'

PrimU.Wir«ftoCorrespo,ndcntsM.^,y,.:.j

LOS ANGELES

•

;

•.-"/r " ;1

!x.V';;V,%v:..v-'.j

::"'Y■ ;$#"

ST. LOUIS

„

:;_J.,-

SAN FRANCISCO

•

stocks.

future capital requirements with

involves

partners

common

obligation andf may prove

TJ. S. Government

Public Utility

"FOUNDED

'A7

':'r~

1865
■'■■■

Industrial

Railroad

' '

p-'y7'

Municipal

Canadian Government Securities

KIDDER, PEABODY a? CO.
;

EASTON

•

''■'■•vV i~!y.

HARTFORD

•

timely.

7,.:

READING

'::K -;i>;

.<:y '

LOS ANGELES

3.50% basis for better grade preferred stocks,.and a 3%

basis for many

'.-"J-

•

7 .-''7^ 777

knowledge, has there existed

2.75% yield basis for high grade bonds,

CHICAGO

PATER SON
•

working capital to

♦

-A

Members of the AVco Ydrk Stock and S'eiv York Curb Exchanges

;-V""7"
NEW YORK

'BOSTON

PHILADELPHIA

CHICAGO

Members New York Stock Exchange

< t

Sixty Wall Street

New York 5, N. Y,
S:';Jv
BOSTON

Private wires te

PHILADELPHIA

•

>■ *■" YYYP-1

CHICAGO

CLEVELAND

MUNICIPAL

BONDS

Boland, SaSiiti & Co.
Established

52 WILLIAM ST,

NEW YORK

5, N.

Bell System

1920

TELEPHONE
■-7 7'

WHITEHALL 3-3414

Teletype—NY 1-535

30 State

30 Pine Street
New York 5, N. Y.

Sliest

Boston 9, Mass. »

THE COMMERCIAL & FINANCIAL CHRONICLE

582

"Thursday, January 31, 1946

Business and Finance Speaks After the Turn of the Year
some war workers, to their former homes is
being, balanced by the return of discharged veterans.
Housing shortages remain critical in the area, and in¬

not refer

I do

ods.

There has

...

never

with

private light aircraft/ Second, they showed that at
light aircraft industry has nothing new
The stars of the show were the same

cost

which

fierce but none turned back

It is
people multipliecfby their friends and their fam¬

Chas. Miller Preston

and

light plane market.

the

also

;

global basis in which we expended

meeting

JAMES H. POLHEMUS
President, Portland General Electric

Created by shortages during the war years,

utility its most helpful backlog of
; during
the reconversion
period. Barring unforeseen develop¬
ments which, might upset the trend
of utility revenues that has taken
place since V-J Day, this backlog
gives every indication of being suf¬
ficient in
size to
offset in large
measure
the effects of the sharp

since at the moment

into

prises.
General commercial and small in¬
users

displayed

assimiliation

The

of electricity also have

stability

who have

the

effects

Polhemus

the combined

well

over

million

seen

war

ended.

veterans

life,

These are men and:
the world and who realize the

business and the spurt of

threat to

here during the war

new

seen

Our

yMff

MMfey

military training always has
necessity must place em-

and

Omk

and at the same time one of the best

and

our

immediate economy lies not in these short¬

and commodities still

On
comes

there

the

continue scarce.

financial

from

front, the greatest encouragement
the fact that for the first time in; *16 years

to be a likelihood that our national budget
be balanced. While it is. apparent to everyone that
our expenditures will be many times
larger than they
have been in normal times, due to the need for return¬
ing soldiers from foreign areas and the general dis¬
seems

may

assembly of

our

gigantic military strength to

peace¬

time basis, it is possible if we make the effort to keep
•our

expenditures within our income.

most

wholesome

and

mobilized

means

the

^Hi

re-

recreation.

In World War

downs, together with the threat of many more to come,
constitute one of the greatest menaces to our future
safety. Inherent in this basic problem of wages is the
ever present threat of
inflation, should wages be raised

•

in indications that
population transplanted
have taken root, and that the dethe

♦

ages, but hi .the inability of labor and management to
arbitrate their differences. Our current industrial shut¬

The interjection of uncertainties into the appliance
has slowed produc¬
of peacetime goods in many plants, although a
factor in considering immediate prospects, is not as seri¬
ous to the utility as it might appear at first glance.
A
meager supply of new appliances is reaching the mar¬
ket, and certainly the situation is not worse than it was
during the war years when, by some means or another,
the Company's residential and farm customers succeeded
in obtaining current-consuming appliances and equip¬
ment despite their extremely limited manufacture—a
fact evidenced by a steady rise in domestic energy con¬

blocks

•

has gone forward faster than we had
right to expect. There are bottlenecks in materials
that have delayed some programs, but the most serious

encouraging sign is

■

Reconversion

market by industrial unrest which

Another

returned

homes.

laxation

any

tion

substantial

and

phasis on athletic games and contests, which provide one of the best
methods for physical
conditioning

leaders for years to come.

new

demobilized

their

problem, but that veterans do have problems. Our
ability to help solve them will determine the success
with which we are able to assimiliate this'most im¬
portant segment of out population. They will be the

consumption in the home and on farms will continue
throughout 1946 at least, and is more likely to continue
for several years. By the time normal conditions are
again reached in these fields, reconversion in some of
the larger industries should be sufficiently progressed, to
permit a substantial recapture of industrial energy sales.

sumption.

were

made

It is our view that the momentum

Of general commercial

proverbial and historically true, that wars have
participation in
Our national game of baseball swept the
country after the Civil War. It was
actively played in the Army camps
during the conflict and was spread.
^
HI
over
the
country as the soldiers
wffKtmmmMBSs
athletic games.

we enjoy to a greater degree than
other people. These veterans will also constitute
a challenge to us to give them
every assistance in re¬
adjusting themselves to peacetime, civilian' pursuits.
However, it must be borne in mind that veterans are not

| not showing the percentage of increase it did during the
Avar period, has nevertheless more than held its own
since the

It is

the effect of stimulating the interest and

any

for all classes of business, while

CHAS. F. ROBBINS

continue the freedoms

rapid

war to peace.
The experience of Portland Gen¬
eral Electric Company has been that

revenue

wartime

President, A. G. Spalding & Bros., Inc.

possible here, with the highest standard of
living the world has ever known.
They will want to

switch from

1
interruptions, the foreign remittance de- |

circling the globe.

overcome

communications continue to

advantages that lie in America.
It is my firm belief
that they will want to maintain the way of life that

utility which, were its econ¬
omy based entirely on large indus¬
trial users, might be hard put to

will
policy of expanding operations to meet all
requirements for its services. Already the American
Express has re-opened twenty-eight of its foreign offices,

since the war's end—a further help

encouraging

funds

now

continue its

to the

be re-established for

and

years

eler return to the international scene the company

great hope for the future.

women

them American

protection

The

partment is constantly expanding its facilities for sending money abroad.
"" "
As the American businessman and the pleasure trav¬

peacetime economy and into our national

our

offers

Cheques.

the

of the United
That this en¬

major power
is involved in war.
The greatest
hope for the maintenance of this
condition lies in the apparent im¬
provement and solution of the per: r *
plexing national problems within the Chinese nation.

cut-off in wartime industrial enter¬

Travelers

war

peoples of the world. Our nation is
contributing leadership in this su¬
preme effort.
World peace today seems to have
a
better chance of accomplishment,

business

The economic necessity

the transmission of funds to relatives and friends after

may

fervent

the pent-

demand of the general public for current-consuming
household appliances of all sorts offers the electric

dustrial

London

Warehousing Corporation

greater demand for its services as the

that travel, commercial as well
as pleasure,
is on the up-swing, the company expects
a wider use of its international "blue paper."

the

start successfully is the
wish of the peace loving

terprise

Company

Nations Organization.

"As Americans travel they carry with

current

the

also anticipates

;

these cheques provide gained in poularity and use during

and natural resources.
of opportunities that
face us, the ability to maintain world
peace will get its greatest impetus
of

lines, bus lines as well as highways will be crowded
the most popular of the tourist seasons, ap¬

summer,

Express

JSiHfo.

list

success

tourist facility in the
All rail lines,

every

for inventory financing is apparent.

men, money

the

Consequently

reconversion program develops.

riMiHk'V;

from

the
current year inasmuch as
travel to other sections of the world

The American Express Field
#

brings the American people face
to face with many opportunities and problems.
This
seems to be our annual lot.
However, unlike the last

the

ing to, the Bureau of Foreign and

In the export field a marked increase in foreign shipping is anticipated by the foreign traffic division of the
American Express Company. The world will look to the
United States to furnish the majority of the items needed
for reconstruction and as production gets back to peace¬
time normalcy the quantity of exports will increase.

both individuals and corporations.

proaches.

The turn of the year

limited.

air

burden

year's end, we are now freed of the
terrible scourge of war waged on a

'
5

America

United States will herald a banner year.

FRANK C. RATHJE

exploits of our Air Forces were proclaimed
throughout the world and the tremendous publicity
value cannot be estimated in terms of dollars and cents.
All of us in the aviation industry should subscribe for¬
ever to the theory of the ill wind blowing good.
In summary, we at Piper believe 1946 will vbe a
healthy .one for the light aircraft industry. We do not
expect to make a fortune during the year but we do ex
pecfc to lay the groundwork for a sound, permanent enterprise in the years ahead.

South

and

Ralph T. Reed

war

tax

North

A greater per¬
centage will be recorded at the end

lung-continued pros¬

reduce the

not

Domestic Commerce.

President, The American Bankers Association

The

James

;

Only

—

'■?

than

will

on a pre*
scale whereas tourist movements

lars—$651,000,000 at its peak—was
spent in Canada and Mexico, accord-

perity, it will be necessary for the
Government to religiously carry out
its plan to reduce its expenses and
proceed on a course of balancing
its budget without too much delay,

of the tremendous difficulties incurred.

commercial

Prior to the outbreak of the war,
44% of the gross export tourist dol¬

have just fought.

To have any

point: In evaluating the future of the light
plane industry, we manufacturers along with our dis¬
tributors and our dealers should- recognize the fact that
the most effective sales agent we had in the years 1941
through 1945 was World War H.

much

com-;

will utilize all existing carrier serv¬

supplying the
goods.

than

ice."

avoid drifting into
inflation which would

dangerous

Approximately 2,000 light airplane owners flocked to
over the country in their own equipment.

soon be
demand for

other

Governmental

between

to each other and

will

enormous

during the

may break all tourist
Western Hemisphere.

the

world,

war

in this way can we

Miami from all

One

management and labor unable

agree,

wise,

which
in

travel,
enter into the 1946 picture

with labor willing
give value received for its pay
and management willing to do like¬

He put that ship through the most
trying maneuvers, actually bouncing it off the runway
on several
occasions and subjected it to more ^punish¬
ment than it would ever receive at the hands of a private
owner.
Implicity, Mike was telling the crowd that the
good old Piper could take it and that anyone could fly

ilies who will continue to friake the

the
and

But

to the consumer,

forgiving airplane.

those

year

Travel to Europe and other parts of

in our history in which
greater demand for goods

way was

ing

records

a year

basis that is fair

airplanes we have seen over the course of five years.
They proved once more, as if they had to, their depend¬
ability and their safety.
,
t Mike Murphy put on a show in the 1,000th Cub which
demonstrated better than volumes that the Piper is a

the

part of Americans

the outlook is uncertain.
However, if management and labor
will compose their differences on a

under the sun.

has expanded its operations to cope]
with the demand for travel on the-

and services than the year 1946.

the momerit the

in spite

been

could look forward to.

at Miami proved two things
First, it demonstrated the tremendous interest

The weather

„

C. M. PRESTON

The recent air maneuvers

it safely,

Chairman of the Board, Hamilton National: Bank
of Knoxville, Tennessee

The export dollar and the tourist dollar
step into the
picture with an emphasis that will forecast the
years to come, The American Express Travel Service;
1946

betterments cost¬

uled.

will be the day before we all go out
of business.
However, I am convinced that Our present
models proved themselves during the war and until we
have at least met the demand, we at Piper wlil stand by

me.

ing $2,500,000 in each of the next three years are sched¬

day we believe that

RALPH T. REED

President, American Express Co,

"catching-iip"

problem of the Company is

Biggest

Transmission and distribution system

here to experiment in design or

'■

total; of residential and general com¬
single

with war-deferred Hist.ribnt.ifin svstem new construction.
improvements and hptterments rnst.Transmission anH

riaclcm

iv,

in the net

creases

ican people approach their problems and opportunities
in an understanding and
co-operative manner. •

mercial customers have continued steady in every
month since the war's end.

engineering techniques.
I believe that kind of testing
was done before and during the war.
This is not to say
I believe we have reached the stage of perfection.
The

them.

1946 has prospects of being a good year if the Amer¬

parture of

(Continued from page 580)

fected, toe can operate profitably.
It is this that we
hope to achieve in 1946.
' *,, „ [
I have spoken above for Piper Aircraft Company
which, of course, I knc#/ best, However, J believe the
principles apply to every light plane manufacturer ot
any importance.
1946 will be a vear of experiment in production methtr

II, the United States
largest

Navy and Air Force in its history—a
total of some 11,000,000 men. As a
consequence, the Armed Forces, during the conflict, purchased for the
use of their men, very large quan¬

HHHHHHH
Charles F. Robbing (

athlqtic goods. There is
every reason to believe that history will follow the pr64l I
verbial pattern and that the country will see the largest; |
and most active interest and participation in athletic
games and sports in its experience.
The enrollment of every school and college in the
country is at a peak heretofore never reached, with the
prospect that this condition will continue for a period
of several years. It is also significant that in the schools
and colleges more and more emphasis is being placed,
on the importance and benefits of intramural (athletics
<
which have the effect of broadening the influence of this

tities

field.

several years and particularly during the
there has been steadily growing the realiza-

In the past
war

years

tiori

the part of, large sections of our population that

physical condition is a prime requisite for the individual
and the welfare of our country.
Athletics and sports

(Continued

on page

584)

Volume 163

Number 4460

THE COMMERCIAL & FINANCIAL

which

Of Full Production
(Continued from first page)
70% higher than they were in the more things at higher prices, and
late '30's, while the cost of living to buy the more
expensive qual¬
has risen by only 30 to 40%. Why, ities.
They pay fantasy-prices for
then, the urgency and uncom¬ luxury goods which are. not under
promising bitterness with which ceilings, and resort to subterfuge
methods to circumvent1 the regu¬
lations

and

doors and windows

open

other

words, labor has no
inhibitions in asking for higher
wages; employers are willing to
grant them in part at once, with
more to be granted if ceilings are
taken off; and the public does not
seem

little"

to mind if it has to pay "a
more. It all adds up to the

typical

chology.
tudes

picture of inflation psy¬
To be precise: the atti¬

labor

and

black

trol
cars

pectation; that ;he
short of cash.

ing

press

will

not run
Uncle Sam's print¬

will take

care

that.

Rampant Inflation Psychology
Inflation psychology is rampant

already,

sign. People
than

indicated
are

every

willing to spend

"normally"—to

buy

which

markets

which

due

"short" in this country?
large, and with few exceptions,
•the

prevailing

and

to a combination1 of

sev¬

eral of them.
Could it
less

at Hot Springs?

be, e.g., that we have
housing and rail transport
,

the

harass

tiful and almost the

number

same

produce a certain quantity, say,

power—is

purchasing

Excess money creates

the element of literal
"shortage" scarcely enters into
the picture.
People travel and
spend more because 'their pur¬
chasing power has increased in¬
ordinately: they have much more
money and earn more, or expect
to do so, while most prices have
not increased as yet in proportion.
If an economic system is geared

the other of the inflationary fac¬

tors,

decline of visitors in

course,

threatening

"shortages" are sequels to One

to the

California

actually
By and

demand

buyers,"

tively
Bank

this

...

hotel accommodations,
luxuries, and of hous¬
ing in general; If farm and stock
equities skyrocket, too, it is not
because of a "static volume" of
facilities,

all kinds of

stocks, as the "Wall Street Jour¬
nal"

intimated,

whiskey

(Continued

of farm land.

on page

compara¬

National

restrained

City

January report. But why
buoyancy of demand? The

favorite

answer

is: there is

an ac¬

cumulation of

"want," due to the
war-time neglect of its satisfac¬
tion, and the consequent intensity
of demand is being greatly sharp¬
ened by the persistence of current
shortages.
Inflation

Produces

"Shortages"

Underwriters «—Distributors

Shortages

Members

the

popular
inflation,
whether
German,: French or.
American, until it reaches the
run-away stage.
Iq reality,-it is
not "shortage" that causes- infla¬
tion, but inflation brings about
shortages, and creates, incident¬
battlecry

are

New

every

York Stock

Exchange

New York Curb

Exchange

Philadelphia Stock Exchange

Chicago Stock Exchange

Chicago Board of Trade

Commodity Exchange, Inc.

120

Broadway

ally, the conditions under which
full

production

ized.

There

cannot

exceptions,

are

Empire State Building

real¬

The

Sherry-Netherland

NEW YORK CITY

BRANCH

OFFICES

PHILADELPHIA, PA

BOND

Consuming more and better qual¬
ities, not because more of them
are produced, but because the de¬
mand is being, bolstered, is the
very essence of the inflationary
process that owes its popularity to'
this appearance of rising living

influences

the

says

ALLENTOWN, PA.

SCRANTON, PA.

BROKERAGE

POTTSVILLE, PA. v

YORK, PA^

MORRISTOWN, N. J.

BRIDGETOWN. .L

EAST ORANGE, N. J.

LANCASTER, PA;
' &&

SYRACUSE, N. Y.

SERVICE

for Banks, Brokers and Dealers

Hardy & Co
Members

New

York

Stock

Exchange

Members

New

York

Curb

Exchange

30 Broad St.

New York 4

Telephone DIgby 4-7800

BOND

and

STOCK

BROKERS

Teletype NY 1-733

Pershing

MEMBERS

Publishers of

:x;;

NEW YORK STOCK & CURB
EXCHANGES
•-•

CHICAGO

BOARD

TRADE

Guide

'V*

Railroad Reorganization Securities

Brokers in
STOCKS

120

BROADWAY, NEW YORK 5, N. Y.

•;REctor 2-3500."
;

PFLUGFELDER, BAMPTON & RUST
Members New Yor\ Stock Exchange

PRIVATE WIRES TO CORRESPONDENTS

61 BROADWAY

CHICAGO, ILL.
BOSTON, MASS
PROVIDENCE,

SAN

R. I.

MANCHESTER, N. H.

V>,

FRANCISCO, CALIF
HAVERHILL, MASS

WARREN, OHIO
PITTSBURGH, PA.

FRANKLIN, PA.
SHARON, FA.

YOUNGSTOWN, OHIO
"

cVf

'<*

NEW YORK 6, N. Y.

*p-"

Telephone—DIgby 4-4933

shortages,

by generating excessive demand,
illustrated in the case of travel

everything from second-hand
to liquors and cotton goods.

dence

merely reflect the inflated pocketex¬

shortage to be blamed or an ex¬
cessive volume of money?
; <

Is the
Florida

Accordingly, optimism is the
keynote to all forecasts. "Confi¬

business

book of the consumer and his

But

necessities

OPA in its futile attempts to con¬

all

destruction.

life's

countries .time record of
100%?
large-scale over-flow; of visitors to

of beverages, and the demand for
purchased, as an indirect way of an inordinate fashion as to mul¬
raising the rent); It is the public, tiply fourfold (!) the passenger them doubles suddenly due td a
too, that ' patronizes the illegal rail mileage—with gasoline plen¬ windfall-increase in the nation's

for further increases..

suffered

(such as by renting an facilities than we had four or five
apartment with the provision that years ago? Or that the
country's
often
worthless furnishings are population has increased in such

What

is, or should be, even
disturbing is the public's
apathy toward higher prices.
There is no energetic clamor that
they should fall, npr even serious
resistance against further boosts,
not the slightest sign of a "buy¬
ers'
strike"
(with the
biggest
Christmas market on record), nor
realization that tolerating wage
raises now means to perpetuate
the war-time high level of prices

•

have

physical
of

labor's demands are set forth?

especially

course,

The Elusive Dream

CHRONICLE

Bell System

Teletype—NY 1-310

585)

CHRONICLE

THE COMMERCIAL & FINANCIAL

584

Speaks After the Turn of the Year

Business and Finance
(Continued from page 582)*v.
play

important part in any program or
"Keeo Fit

Tt i« crpntiv tr» hp. hntipd that this

in-

Changed emphasis on'the product we sell, more on
....
_
,
,

•

ess

*h many other ways it will sharpen oui

philosophy

surmice protect.on and

this nature,

This

war, have contributed fnuch to the eco¬
nomic development of our southern neighbors and to the

ousiness acu

well-being of-their people.iThe industry^ has every con¬
fidence in its continued ability to improve and expand
its services to the "mutual benefit dfjts local customers

spread; but will be translated" .men, preserving,, at ttie same ..time,
every
petitive exercises as between companies in the business.
there is every indication todav that
indication today: that

Willindicate"the'reason^ for the;
active ;

factors in the sittisitioh

and partners,

W. S. ROBERTSON

of the more important

of some

mention

brief

belief that there is very sure to be a strong apd
market for all sporting goods for several years.;

President, American and Foreign Power Company,

■

Mutual

there

The

•

I employed and putting new
money to work at rates consistent
with contractual interest assumptions

absolute

living in
As

keeping
it was to float

necessity f of

interest

we have been
controlled credit market.

direct result of this control and

the

tremendous

the

income

plethora of capital,

which

can

derived

Retirement and refunding of debt have
accomplished on an unprecedented scale and by
Imeans of private gale and bank loans institutions have
lost many of their old bond issues. State, municipal and
Icbrporate debts are less than they were a year ago, but
brivate savings alone have increased during that period
v.iby at least $40,000,000,000.
lernmenf rates.
,been

While I never have been a pessimist on the subject

M all-out inflation,

degree of inflation is. with

and

is to comm and all ot this causes concern to

'more of it

fboth policyholders and the management,cthough it is not
'.regarded fearfully.

There are some who feel that interest rates will stif¬
fen, I can see nobasis for this in Ikeforeseeable-future
if the Government's financial program is to be main¬
■

tained.
i>

Some students of the situation

jthe repeal of the

are of the opinion that
profits tax would lessen the

excess

.number of refunding operations that we might otherwise
expect to see in 1946.
Personally, I feel that if a high

|volume of business is done,

a strcmg velocity?
credit
I will be; attained and the refunding of outstanding debt
will continue.

All of this impels me to the belief that

]ia wider latitude in " permitted investments should be
^granted such businesses : as our

<wn

pnless the Cost to

jihe policyholders is to be greatly increased, and almost
^immediately.
•
I There is very little emphasis on the payment of the
national debt and

some

of those

charged with this

re¬

sponsibility. feel that the size of the debt is unimportant
as

long

its debt service

can

be supported.

The debt

Service is to date budgeted at the level of $5,500,000,000
and while this is sizable it is workable if

•income is maintained.

high national

Because of the magnitude of the

debt ttiere: is every need for keeping the; debt service as
low as possible and the Treasury now 1 puts the overAll figure at 1.9% and intimates that it is probably less
because of

some tax Impositions.
.
:
hopeful that the Insurance Commissioners will
adopt some variation of the plan presented by the Joint

Is I

trailer builders of this

mills,

ficulties
tioned

addition

above

Government

country. Difthose men¬

regulations.

...

gains in sales of electricity to residential and
users paralleling, and at times exceeding,
category.
The public utility industry has been making every ef¬
fort, consistent with economic realities, to keep pace
with the increasing demand for electric power. With
the greatest installed generating capacity in its history,
capacity operations have been the rule, rather than the

steady

exception. Further expansion has been held in check
by war-time difficulties in obtaining equipment and, in
situations, by nationalistic government policies
mounting costs which have made operations un¬
profitable. The problem of increasing costs, quite general in Latin American industry, is a manifestation of
a broad inflationary trend. Behind the rise in the price

certain

line with the

and

operator over the past several years, and which seem to
be increasing rather than decreasing. It i;s doubtful that
the truck operator can afford to pay higher prices for
his equipment when ;he is faced wiJih higher prices fm
the material and labor necessary for the operation of

level ai^e tremendous increases in government note issues
and in bank deposits, resulting from the acquisition by

the vehicles without

banks of foreign .ex¬
change and gold, arising from a succession of favorable
trade balances; The inflationary effect of the ^increased
supply of money has been magnified by an insufficieny
national treasuries

And; centraT

The

goods. At the same time, heavy govern¬
have • resulted, in unbalanced
budgets and increased internal debts, .despite the im¬
position of higher taxes. Fuel costs for the,public utility
industry have, in many cases, increased more than 100%
since 1939 and wages have been raised repeatedly.
In
some
countries, the .regulatory bodies have recently
.

...

our

....

The future outlook for the household sewing machine

certain

indeed bright and promising. Independent
indicate something like 3 % million prospective
buyers, and these figures are based
on releases by the Civilian Require¬

industry is
surveys

inability to secure materials and
Unfortunately, there has been a tendency
in

ment Division of the War

of April, 1945,; which is
several times the largest annual pro¬

duction

enforced rate cuts and, in some cases, confiscation of
'' P™Peity- On the favorable side, have been the stability
of

Even

with

Associa¬

the American Life Convention having to do
new valuation for
preferred stocks.

Comoeting

do with others

with funds to invest,
including cer¬
tain agencies of the Government itself and
lately the
banks, who hkye been looking for new edtlets for their
swollen funds, a relief of the sort suggested
by/this Joint
Committee and something beyond
that is necessary.^ J
dm confident that the Insurance Commissioners and the
as we

legislatures of the several States -where legislative relief
is needed haWan equbl awareness ot aSe
Dr. Williams, President of the Federal Reserve
Bank of
Philadelphia, referred to this in his addess to the Amer^
lean Life Convention in the fall of 1944 as a need for a
Jiew legal 'concept having to do with the classes of
pe^
haitted investments for Life companies^ v j
■

|j
a

The foregoing is not. intended

as pessimism, but rather
living with and the
it. On the Whole the com¬

real appraisal of the things we are

things that

panies

are *

face,

see

financially stronger than they

there is

ever

were.

industry ever enjoyed.
it would still

very

large potential market. (|

of this potential market
based on reliable infor¬
mation, that some 14 million women
spend approximately 2% millions of
appears,

dollars
and

fact

month

each

clothes

one

that

the

vice for hand

long-standing inequities, and

A. S.Rodger#

no apparent let-up in the
persistent demand for
electric power.

seems to

inflationary

be little hope for early
prices, taxes and

pressures on

women

living costs. Most Latin American countries possess large
rwc,n
of foreign exchange and
although some have
recently been losing exchange on balance, the decline

i
rvps
reserves

has

been less

than

fine

was

years

did

America

purchasing

mechanical de¬

sewing occurred many

in fact, so far back
manufacturing1 in those early

many years ago;

that
-

about

for women,
must not lose sight of the

control about 80% of the

there is

Unfortunately, there

read

magazines

The substitute of

anticipated in many! quarters.
acceptance at the hands of the public -Dollar exchange should be adequate for the service of
qnd they are discharging their responsibilities.
In the
| foreign public utility investments during 1946. Exchange
economy that lies iust ahead it would seem that unless

They have

the

discounted 50%

In support

was previously noted, power rates are being adjusted in
some countries to correct

abatement of

Production

Board !as

countries.

l°wara extreme nationalism in certain countries, resuiting ^in agitation against foreign-owned enterprises,

Although most utilities are still faced with; the diffi¬
cult problem of adjusting service rates to the higher
price level, there are some favorable factors in the.out¬
look for the industry. Materials and equipment are again
becoming available, and many companies are now able
to embark upon extensive programs for the expansion
and improvement of their facilities.
New capital, both
local and foreign, is available and is finding employment

Insurance

Fresident, IVhite Sewing Machine Corporation

tenance expense, due to

nationalism

com-r

A. S. RODGERS

industry has been able to sur¬
vive in the face of rapidly rising costs, and inadequate
rates is largely because of a constantly increasing volume
of sales. In some instances, however, earnings have been
maintained only by the enforced deferment of main¬

extreme

our

;rnar1;Pt
market.

That the public utility

toward

increase in his revenue.

therefore, making every effort to keep the cost of
product to a minimum in an effort to increase the

are,

disposition to recognize increased
costs with rate adjustments but, generally speaking, pub¬
lic utilities have been Unable to pass these higher cost?
on to the consumer as have other industries.
;
,
increasing

equipment.

getting

Silent Automatic Division of

plant has been purchased for this operation," and these
■improvements along withothers we * are making in quir
three major plants will cost in excess of $3 million.
In
spite of the difficulties facing us, we are confident that
the advancements of the past decade in motor' transport
tation will be far surpassed in the next decade, and we

of imported

Timken

;pany have plans for greatly iucreasedrproduction of i all
of the* units they manufacture for home heating.! A!newr

mental :, expenditures

shown

cost that have faced the truck

increased

tion and

Life

ex¬

the

some

vestment interests.

Committee of

due
For

example, they give
portion of the Parts "
Builders who are makingoriginal.
equipment for passenger cars, and
Walter F. Rockwell
yet give .no relief to those Parts
Makers, in many cases the same firm and the same
parts, who are making original equipment parts for the
truck industry.
The uncertainty that such a situation
creates is making many Parts Makers doubtful of their
wisdom in proceeding with their original plans which
call for increasing their productive capacity unless they
have some definite knowledge as to whether or not the
increased operation Willi* be at a profit. Further Gov*
eminent regulations affect the ultimate user of our
product since the tariffs that the common carriers are
permitted to charge are not permitted to be raised in
principle. As

relief to

exchange rates and the freedom from remittance
problems :which, in the past, have plagued ^foreign; in**

Investment

;

largely

are

ample, the OP A has issued rulings
that are diametrically opposite in:

increases in the industrial power

all-time low and, at certain
nasds^ has broken^ through Gov-

•

ques¬

of this is evidenced by the
large volume of orders that have
been placed with the truck, bus and|i

commercial

itimes' in some unusual

the

new

/ /

proof

conditions in agriculture and mining,
together
with
notable
advances
achieved in education, sanitation and housing have raised
the living standards of millions of our fellow Americans
south of the Rio Grande. This has been reflected in

to*an

and steel

need

-'mounting demand for electric power.
The growth of local industry during
the war and generally prosperous

from corporate bonds has slid down

E. A. Roberts

iron

There is

the
transportation,
country is in dire ;
equipment.
Ample -

what

but

industry

W. S. Robertson

and, accordingly,

rate

tion

New

production while ham-

ficult to forecast.

certain

woodworking establishments, cement
plants, food processing, chemical and
textile factories have contributed to a

of deficit financing

same

for

industrialization
of
Latin
continued to gain mo¬

mentum.

guarantees.

earlier issued nt jiar if
further bonds at the

demand

Industry, ihe Automotive Parts

plants and at our customers' plants
makes the results of operations dif-

noticeable slackening in

States

volume

full

America has

the Government has been met with

the

produced

surpluses of Latin American
£ commodities and minerals were not
i unduly burdensome.
?

serves

program

able

The greatest single prob¬
the matter of keeping re¬

Locally

strategic materials. However, export¬

reserves.

was a

United

and

It seems clear that our

Industry, can expect a large volume of business during
the coming year, but the problem of getting back to

un¬

manufactured
products'found reW markets
though, with the end of the war,

in. far better shape
.'than most dared to hope in 1941.- The mortality savings
foave beeir!favorablepretty^generallysand: the security
of most companies has been greatly;
enhanced by careful attention to the
weeding out of doubtful assets and
the strengthening of policy and other.,,
is

were

commodities and light

We have come through the war

lem

active.

usually

Life. Insurance Co.

President, The Timken-Detroit Axle Company

equipment,

industry

and

commerce

and its foreign investors.. -. ?\

WALTER F. ROCKWELL

past year has been one of continued economic
and social progress for most of the "good neighbor" re¬

E. A. ROBERTS
President, The Fidelity

Inc.

The

publics. Despite "shortages of materials and

lems which have arisen during the past fifteen years of
depression and

Will not only continue to
into* action—and-

Thursday, January 31, 1946

iiot have available the marvelous modern tools,

materials, technique, engineering and equipment such
as has been introduced in more recent years. But despite
*

thirfacT"acco7dingTo^historicaf information, there~were
something over a hundred thousand sewing machines
built in the period from 1846 to 1856,
that

for household use

which is an indicaton of public acceptance even at

early date.
It is

>•

generally estimated that there are some 25 million

marked change, some of which may be brought

about by the relief I have suggested, two things seem
inexorable Jri the picture to me. -The first is that Life

Insurance will cost

and the second is that
and beneficiaries, will buy

money

the proceeds to* policyholders
less in our markets.

■f j These problems are not insurmountable, nor is a fail uro to solve them- to be cataclysmic. It will necessitate a

-riX
he

utility companies, and by the additional opportunities
companies are providing for the participation of
local'-capital.t ! v,^^
x
M North American public utility interests» in Latin
•America, while surmounting the many difficult probthese-

Forum indicates ap¬
proximately 24% of the families interviewed expect1 to
buy sewing machines.. Then •; one cannot overlook the
(Continued on page 586) :
A; survey by a Wage and Eairner

^Volume 163

Number 4460

TJHE COMMERCIAL & FINANCIAL; CflRONJPLE
•

monetary factor

that makes

production- evade us; like
sion

the

complete

our

tive

Continued from page 583)
^
(That is one reason
3. Because of the necessity of
why it is so difficult to stop the softening the repercussions of in¬
process once it gets under way.) flation on the masses, government

Also, "shortages" are being arti¬
ficially fomented through OPA
regulations and similar interfer¬

check

Nominally, the convertibility in
illu¬ gold i§ maintained, but actually

it.

disappointments,

will find also: that the

standards.

chase

full
To

inflationary ex¬
"buyers' strike," is
inoperative, under these circum¬
stances—for a long time to come.
on

the

cesses,

"Buyers' strike"

that the

means

does

not

exist except for spe¬

well.)

p.
.

History will repeat itself, people
like to believe: should the rapidly
::

discount against gold on the
markets of the world.
At

home, there is

f History Doesn't Repeat Itself

purposes,
permitted- from
time to time, and the dollar sells:
open

-r.i

20%; it might be reduced tq

zero as

cific

effec¬

one

growing output of goods (which
take for granted) not turn
the
price
trend
automatically,
then a buyers' strike will develop,

they

convertibility at
all. Consequently, the central bank
is free to print money ad libitum
no

will be forced to continue the im¬

elasticity of demand is restored since it cannot be called upon to as it did in 1920, and in due coursq
position of OPA regulations. This when prices have risen suffi¬ pay out in gold, and as Mr. Eccles the price inflation will be checked,
will contribute
told a Congressional
further to
the
committee; The trouble is, however, that a
ciently so as to exhaust the pur¬
ences.
and
shortages
which chasing power of the consumer. the volume of money has no re¬ buyers' strike occurs only under
Ceilings which attempt to stresses
lation whatsoever any more to the the gold standard, as in
keep prices on a level incompat¬ cause labor strife and inhibit Under the gold
1920,
standard, as a rule,
ible: with the supply 2 demand management in the pursuance of no inflation (of
gold in circula¬ gold reserves. (The reserve ratio when the budget is. being bal¬
situation, invite hoarding that de¬ full production.
tion or of credit) can go very far; of
gold • to Federal Reserve lia- anced, when the accumulated cash
: There
never has been a time
pletes,, the markets, and bring
that indedd • is the essence of the
bilities has; been reduced lately
about
reduced
(Continued on page 587)
'J
production
that when a democracy at peace has gold standard, that it does not per¬
been able to achieve full produc¬ mit
keeps' them from being refilled.
expansion except within nar¬
The
most
important indirect tion in the fac^Of inflatiqhi There row limits. It stops expansion by
source
of
"shortages" is labor is nothing to indicate that the compelling the monetary author¬
trouble, which is essentially a current paper prosperity will be ities to hold the "credit base," to
,
^consequence of the monetary in¬ an exception.
\
i#* %
v
restrain: from issuing more legal
flation, too; Swollen pocketbooks,
tender or (what amounts to the
The Illusion of Buyers' Strike
due to the war-time, inflation,
same) more balances at the cen¬
The further the war recedes, tral bank. That
strengthen
the
self-confidence,
stops the rise of
the
more
shortages
bargaining power, and fighting
increase, the national income, or reverses
will of the working men and of which goes to show that the de¬
it, and commodity prices have to
the unions, the more so
since cisive cause is not the war-time adjust themselves accordingly.
Specializing In
labor is aware of the vast accu¬ mal-allocation ' of
national
re¬
But we are not on the/ gold
mulation
of
pent-up
demand sources per sc. Decisive is the
standard, not by a long shot.
backed by ability to pay (the
consequence
of
inflation)
and
wants, to insure its share •; in the
pie. The distortion of "relative"
We Offer a
wages—disproportionate rise in
one category as against the other
COMPREHENSIVE INVESTMENT
—adds to the smoldering dissat¬
AND
isfaction and sharpens the class•

consciousness.

All of which leads

to. industrial strife, fanned by ir¬
responsible political factors, which
in turn reduces production! and

shortages.

causes more

Will-o'-the-wisp bf Full
,/; ■ProdUCUony'^^-c'

p.:

'Members

'. »:

i ii:.

ALL CLASSES OF BONDS
*

•

'Pjitt

Vilas & Hickey

DEALER SERVICE

PUBLIC

•

AND STOCKS

including^.

Neta

York

Steele

Exchange

Members

Neta

York

Curb

Exchange

49 Wall Street
:

Telephone:

UTILITY—RAILROAD—INDUSTRIAL

HAnipver 2-7900

Teletype:

NY 1-911

That

brings

the question of'

•

FOREIGN—MUNICIPAL

prospective shortages. If the pres¬
ent

ones are

largely

We Are Particularly Adapted to Service Firms
With Retail Distribution

a consequence

monetary inflation, the forth¬

coming
disproportion. between
supply and demand will. be al¬
most entirely due; to the fateful

Your

fact that inflation expands the de¬
mand and simultaneously checks

pthePexpansion of supplies.

P. F. FOX & CO.

Gov¬
who

ernment and industry experts

preach that full
end inflation

production

120

Telephone

pursuing a willthat will not mate¬
rialize iii the foreseeable future—
unless

the

BROADWAY, NEW YORK 5, N. Y.

will

are

o'-the-wisp

not

Inquiries Solicited

Teletypes

;

Adler, Coleman & Co

NY 1-944 & NY 1-945

REctor 2-7760

Members New York Stock Exchange

Members New York Curb Exchange

flood is
stopped and is actually reversed.
mpney

The American people are being
that
as
soon
as
industry

told

reaches capacity production and
goods are available in quantities,
prices will tend to level off auto¬
matically. The prevalent idea is
that inflation is

caused by

short¬
ages and will disappear when the
latter is overcome by production.
In reality, inflation creates condi¬
tions under which full production

15 Braad

Primary

CONNECTICUT

JIIAIlkEXS lor

Dealers

Insurance

We particularly invite

Utility

your

Bank

BILLINGS

Municipal

because

the

working

faced with a progressively
lower purchasing power
of his
wage
dollar, will be quick to

Securities

fixed wage as long as price in¬
flation continues, even at a slow

RUSSELL

MFG.

CO.

COBURN & MlDDLEBROOK
37 Lewis Street,

Hartford 1

N. Y. Tel. HAnover 2-5537*

Hartford Tel. 7-3261

Teletype. HF 464

One Wall St., New York 5
N Y. Tel. WHitehall 3-4794

New

Haven

Hartford Tel. HAnover 2-5537*

London

Norwich

Direct

Portland,

Me.

INC.
^

2-1135

> 2. American business will tend

to become

MAGH.

SCOVILL MFG.

7-1288

pace.

BRITAIN

TORRINGTON CO.

man,

realize that he is not getting what
he really bargained for..
Labor
will not be satisfied with
any

CONN. LT. & POW.

that new wage
be negotiated in

LERNER, Managing Partner

SPENCER

LANDERS F. &

probability

the next few months will not in¬
hibit more strikes or slowdowns

ivi?

MURRAY

in:

AM. HARDWARE

State &

1. The wave of strikes will be
followed by more waves of strikes.

will

inquiries

AETNA LIFE

NEW

contracts

everywhere
Trading Department

Industrial

cannot be realized.

The

Street, New York 5

HAnover 2-9780

303

Hartford-New York 'Phone

'
:

4-2693
,

40 WALL ST.

El Dorado of specu¬

Dealers in

lation. The entrepreneur, harassed

by ^distprtions Of the price struc¬
ture, unable $ to; predict costs of
wages,r materials and other fac¬
tors of production, will tend to
.avoid long-term: commitments and
seek, instead, quick capital turn¬
overs.
In place of operating com¬
plete industrial processes, there
will be

inclination to limit

ac¬

NE W
NEW

MUNICIPAL BONDS

operations

We will
ahd

see

by
era

UNICIPAL

LEBENTHALfc CO.
135

chiselers

very

buSv

money,. and £ producing
everything but production;

making

CITY

STATE

BON PS

MUNICIPALS

GENERAL

MARKET MUNICIPALS
REVENUE

BONDS

Compkte Service
MUNICIPAL

TELEPHONE:

REctor 2-1737

WHITE HALL

TELETYPE: N Y J-2030

3-6742
■
_

EN'ODD*LOTS

fly-by-nights; all

BROADWAY, NEW YORK 6,N.Y.

OldestHouse in America

middlemen.
of

YORK
YORK

PUBL1G

tivity to single phases of produc¬
tion, such as quick buying and
selling of; materials or; specular
five-

NEW YORK 5

Lt»KNTNAL»CA^|

$pcciaUzmgin

ODD IDT MUNICIPALBONDS

OS
IN-ODD-LOTS

.B.ell System Teletype NY 1*2272

;v-; l I a IWTHAt 4 Cft

THE COMMERCIAL & FINANCIAL CHRONICLE

586

Business and Finance
girls enroll in Home
Economics classes each yeajr, and that there :#re more
than a million and a quarter new familiesPadded each

fact

that

over

million

young

year.

Pattern sales should be a very

definite indication, not

•only of the interest shown in home sewing, but in the
actual use of a sewing machine, and information re¬
leased indicates that sales of patterns in the year" 1930
amounted to some 59 million patterns and. in 1944

So, all in all, it
would appear that the potential prospects of the house¬
hold sewing machine industry are very rosy.
amounted to over 100 million patterns.

hold
an

sewing machinesl should be viewed largely from
standpoint as contributing greatly to the

economic

necessities

life

which

commonly referred to as

are

food, clothing and shelter. Further than this, the elec¬
trical household sewing machine occupies almost ex¬
clusively the unique position of being an article that
begins to produce almost from the moment it enters
the home, and if used often enough, the production of
the sewing machine, can be translated into a consider-

A sharp, increase in the number
banking offices, the augmentation of our tra¬
ditional services by such new facilities as payroll savings
plans, life insurance, the safekeeping and redemption of
Treasury savings bonds, promotion of home exhibits, etc.,
and an increasing community-minded attitude on the
part of savings bank management can be counted upon
to enlist mounting public favor in the communities
which we serve; \'
\ i(,
of branch

FRANCIS P. SEARS

&ith the highest pay
the desirability of
savings through the teaching in the War Bond Cam¬
paigns and the instruction given in
the Army camps on the many ad¬
vantages of saving through Life In¬
surance, which provides the surest
and easiest way known to man to
1 build up an estate.
in

Wage earners are
history, and they

it would ap¬

of 1942 when the national

inline began to reflect the
^ country's rapidly expanding war production program.
Unfortunately, figures for the nation as a whole are not
| 'available at this time but here ih the State of New York,
where we had on Jan. 1, 1945, 131 mutual savings
,banks;with 46.3^%, of the total number of depositors and
•

depositors as

of the first of this year had increased 276,000 to 6,672,732

deposits (exclusive of dividends) $1,052,000,000 to
$8,282,988,494^-gains of 4.3% and 14.5% respectively for
1945,
In - the absence of • exact figures this may • be

and
i

assumed

illustrative

the

national

experience.

In addition the mutual savings

banks, aside from their
r wn heavy investments in United Stdtes Treasury bonds,
p ayed a leading role throughout the war in the sale of
War Bonds to the public. In New York these bond sales
ran well over $1,000,000,000 during the course of the war
years of which approximately $228,000,000 was disposed
of in 1945. Our own Erie County Savings Bank, we are
proud to report, was in the vanguard in this under¬
taking, having issued almost 900,000 individual bonds
with a maturity value of $39,500,000 from May 1941 to
the end of 194$.
V

Prospects for 1946 would,

seem

long period,

Any

able

nancing becomes resurgent,

new

controlling influence

over

indeterminate period

problems of diversification

security

investments

have

a credit¬
their wartime role of

the

Despite these handicaps

some

time to

come.

in the savings banks are

satisfactory

and

demand suggests a
The cessation of

earnings.

possible

decline

temporarily, some
bank deposits,

naturally, closely related to government

very

and

are

The

industrial

activities.

The

liquidity

re*

excellent position to meet their require¬

present

surprise.

the

problems of reconversion

It has been recognized for

adjustment

from

war

certainly

involve^ a

would

peace

are

time that

some

resetting of prices and wages,' increase of

unemploy¬

ment, decline in production, and falling of national in¬
come;"

However, while these changes $o not seem to be

fundamentally unlike
of

other

the

wars,

those

accompanying
occasioned

stoppages

the
by

closing
the

dis¬

agreements between labor and management, if allowed
continue

point

too

long,

disaster.

could

them

accentuate

Therefore,

the

welfare

future

happiness of the American people

and

dependent

are

upon

the ability of labor and management to reach a speedy
settlement of their differences and the American people
less to labor than to management for a solution

of their problems.

The shelves of this

world,

these

Once

turn

goods, all will

agree

We have the money,

us.

•

country, and for that matter of the

almost bare of most things necessary to

are

well-being.

energies

our

producing

that great prosperity awaits

the ability to produce, and the

demand.

A. D. SIMPSON
■

».

V. V

,r. -• •

• Th«>y

,4-t'v • %

•

President, The National Bank of Commerce of

Houston, Texas
As

convert irom
,

industry to peacetime in¬

war

dustry,! i qahnot help but feel j^atithe Gulf Coast ai$a
and other -parti ;of Texas can look* forward with conffc
dence

to ,the brightest of prospects.
During^the-- war,
Houston and other Texas? bankers have done an outr

standing job, taking the lead in eight War Bond Drives,
at

and

all

times

than they earn.
to

urging their customers to spend less

They have made

industry to forward the

war

many

unusual loans

effort and have handled

the War Bond program without cost to the Government.
I

convinced

that whatever

the problems

bankers

Government

hands

of banks

se¬

reports

peace¬

swing

area

Our banks

willing to take care of the
legitimate demands of American in¬

spirit

same

I believe that this

minimum of unemployment and similar

HERBERT E. SMITH

making

and

funds for working
capital,
purposes.

While the

increase of 66%

wholly peacetime production year.

1939,

Major part

bq accounted for by tires#

than 80,000,000 units, of which

tires.

66,000,000^111

Previous largest passenger

car

Achievement of the

tire shortage^ but not

noticeably until the latter half of the. year.'
other
Henry H. Sanger

provide

relationship be¬

depositors and banks calls for careful scrutiny and
making of longer-term loans, an

caution in the

earnest effort has been and will be made to
supply

There

goods, such as footwear,

sundries, will also be
but with the

plant expansion, and other

very nature of -the

generally seeking

figure of $900,000,000 in

66,000,000 goal of 1946, which is at the rate of more than

term loans

in this direction.

$1,500,000,000,

two tires a second, will ease the

financing problems is being employed in
of revolving

value of

tire output was 50,000000, in 1941.

all-important. part of financing its peacetime volume.
The knowledge gained
during the. war in solving many
very unusual

the corresponding

be passenger car

dustry for, credit to be used in the

their

the

contributions.

problems.

duce

are

eager and

tween

war

to peacetime work,

over

will have

with

them

Operating at capacity, the industry is expected to pro¬

stand

banking

needs of the nation.

some

tackle

of this record production will

and

evidence of the part played.

the

will

through which they made their

1946 with

The mil¬

production financed

of banks

dividends to depositors for

they

dollars
in

war

funds necessary

continuance of low interest

large part of banks' portfolios

increase loan

some

ments.

the last

to type and maturities and the maintenance of adequate
a

make

The rubber industry is expected to produce goods in

discharged in

cash

positions, forecasts

This

The
institu¬
tions -for 1945 show a very healthy
condition, indicate good earnings
and reflect liquidity, which should
confirm confidence in the .ability
of
banks
to
meet
the peacetime

interest rates generally for

period

fleeted, in the financial reports of banks indicates that

industry.

mortgage fi¬

and, coupled with the related

II.

manner

annual

major

are

over

the

savings bank

k-'

of business for the year 1945 must take

of the most important

War

curities

Because of

which

financing

Government and

carefully

The tremendous national debt will undoubtedly ex'ert

present

activities will cause, at least

redistribution

lions

must look forward to

treading water for the present until

this with
continuation of
and

financing the requirements of both

past several years, will no
nancing of existing mortgage loans is a limited field,
lending for home modernization is
/ hampered by the
same obstacles hamstringing home construction, and GI
home loan applications, while increasing .daily, have

continue to represent

The records will disclose that the

during the
longer be available, a re-fi¬

these factors and the restricted field for

the

President, United States Rubber Company

banks

of investment for savings banks funds

investment in other directions

features

dangerous any prophecies as to the future. However, it
is obvious that United States Government- securities will

peace.

normal mortgage investment outlet. Government financ¬

materialized in appreciable volume.

unusual

The

Texas

event, the end of
long-hoped-for close of the war
has brought with it the problems of
reconversion and the winning of the

The investment problem promises to remain acute as
the critical shortage of building materials and the lack
of skilled craftsmen continues to retard
private housing
construction and thus deprive the
savings banks of their

not yet

Bank of Detroit

survey

cognizance

insignificant proportion of the total asset structure, mort¬
gage delinquencies havebeen reduced to the lowest level

the

obligation of banks to assist in supplying the Amer¬
ican people with desperately needed housing, through
mortgage financing, will be fulfilled and reflected by a
growth in mortgage accounts.,
..

look

' '

Life Insurance experienced its greatest growth in the

World

acquired during the depression era has been
liquidated to the point where it represents a relatively

which provided

Offsetting the current low interest rates in some de¬
mortality experience that life insur¬
ance companies have been having for several years now.
There is expectation for pven better mortality experi¬
ence with the termination of the war and the introduc-tion of the marvelous new sulpha drugs, and penicillin.
Heart troubles are the worst enemies of longevity and
account for* nearly half the deaths among insured lives,,
but there is ground for .hope
of improvement .here
through the investigations of the Life Insurance Medi¬
cal Research Fund which the life insurance companies
have voluntarily established With an Income of some
$600,000 per annum for the purpose of studying the
causes of these outstanding disabilities and to discover
prevention and cure.

available in quantity.

scale,

The

gree is the good

their already vastly improved asset and capital positions.

war-time

HENRY R. SANGER

Real estate

estate in any other

Chairman of the Board, The Manufacturers National

This year, generally, is expected to be one in which
the savings banks will further consolidate and strengthen

consumer goods directly and through financial assist¬
ance to dealers and wholesalers of these commodities.

time banking and reconversion are, Houston and other

sizable withdrawals are
anticipated during this period
of economic dislocation and adjustment and again when

source

age

interest rates con¬
doubt it will be necessary^ for
the life insurance companies to raise their premium
rates and thus increase the cost of life insurance, but
this cannot affect those who have the foresight to ac¬
quire theh^ low cost life insurance in 1946, since the
premium once agreed upon cannot be increased by the
companies.

labor-management difficulties and the ensuing time
lag which must inevitably follow before production is
resumed and the level of employment increased.
Some

ing

following the First World, War, and • I am con¬
fident it WiU develop even greater usefulness arid serv¬
ice to the people of this country in the coming years,

to indicates further

in fifteen years and mortgage loan
portfolios
screened to eliminate the weaker items.

If present low

tinue for

ent

are

years

through the payment of less than
$300, and the estate can be continuously maintained by the payment of
a similiar amount annually.
In these

to create such
Francis P. Sears

which the current earnings and accumulated savings of
the nation's industrial workers are affected by the pres¬

goods

twenty-one

decade

growth in the number of depositors and a continued net
gain in deposits, conditioned largely by the extent to

consumer

by annual

days of low interest rates and heavy
taxation, it would be hard indeed

The year 1945 was a notable one for the mutual sav¬
ings banks throughout the nation. Both the number of
depositors and volume of deposits reached new record
high levels, continuing a trend originating in the Spring

of deposits,

estate,

be maintained

can

man

DEXTER P. RUMSEY

dollar volume

such

establish

once

premiums. An estate of $20,000 pay¬
able at death can be started by a

President, Erie County Savings Bank

of the

with

which

in the past.

53.4%

unbelivably small com¬
the estate desired will

sum

pared

learned

has facilities that can and will be quickly ex¬
panded to a point where the industry's production will
catch up with the potential demand. It would also ap¬
pear from all indications involved that for at least a
number of years in the future the general annual level
of production should be considerably higher than it has

prosperous

have

.•

our war

President, The Columbian National Life Insurance Co.

pear

V been

our

cal years just passed.

| able number of dollars annually,
The household sewing machine industry

in which the,public has mani¬
institutions during the criti¬

manner

fested its confidence in

electrical house¬

It is well to consider the fact that the

Speaks After the Turn of the Year

heartened by the

(Continued from page 584)

Thursday, January 31, 1946

are

many

the

signs

opportunity to) broaden
services, including the establishment of depart¬
an

ments for the extension of credit both to purchasers of

scarce

golf balls,

and

to¬

drug

in the early part of the year,

industry geared for capacity output,

sup¬

plies will greatly increase as the year progresses; 'A
Total consumption of rubber by the United States in
1946 is estimated at 900,000 tons, which compares

the

with

previous high of 780,000 tons in 1941, and an average

of 540,000

tons in pre-war years.

Of the 900,000 tons;

approximately one-third may be natural rubber and the
remainder various kinds of synthetic rubbers,
World consumption of all types of rubber for 1946 is

placed at 1,400,000 tons.

The year's potential world pro¬

duction of all such rubbers is
of which 1,200,000

estimated at 1,900,000 tons,

is synthetic capacity in the

States.

•

(Continued

on page

588)

United
••

•
,

Volume 163

Number 4460

THE COMMERCIAL & FINANCIAL CHRONICLE

Tha Elusive Dream of

people would spend all of their

Gait it *. Y. Slate

for gifts to celebrate

money

the

first peacetime Christmas in five

full Production

Savings BaakDeposits

years,: our

savings

deposits

rose

A net gain of $1,167,564,768 in by $90,070,613 and the number of
(Continued from page 585) '
accounts
increased
by
25,926.
'savings do not amount to much, savings deposits for the 131 mu¬
in other words, when the income tual savings banks of New York Certainly nothing could indicate
::%!• the buying public cannot match State is reported for 1945 by Rob¬ more clearly the will to save on
Rising prices. Thia is a different ert/ M; Cathatohe^ President of the the part of American people and
% situation now. ' We have an /un¬ State
Association.. This brings
the confidence they have in this
balanced budget and are ready to savings
bank
deposits in New
York State to an all-time peak of fundamental savings system."
,

J keep it unbalanced for an indef¬
inite

period and in an indefinite $8,283,462,494,
an
increase
of
magnitude. The more prices rise, 14.8% for th'e year.
This is the
the. more public deficits will be largest gain in savings ever re¬
pouring but, and the more of the corded.1 Mr. Catharine states that

$200 billions excess, cash savings
will be disbursed. And they may
: be disbursed over and over again.
,Of course, it happens even in a

inflation

run-away

that

prices

jump ahead of the printing
The

press.

German

inflation, e.g., wit¬
in its run¬
away
phase, which had to be
"corrected" by the printing press
working over-time* to overcome
such' "crises"

nessed

the

.In

temporary

shortage.

money

slow inflationary process like
ours, it will take quite some in¬
a

prices,
probably, a
doubling from the present level,
crease

before

this

kind

"Since Jan. 1, 1942," Mr. Cath¬
arine

been

pointed
an

out,

"there

has

increase of approximately

ihore remarkable than the 628,000 in the number of savings
gain in dollar deposits is the fact bank depositors, while total de¬
"even

that

these

deposits are repre¬ posits have risen by $2,734,000,000,
bjr 6,672,824 /separate ac¬ a
gain of nearly 50%. In addi¬
counts, or the equivalent of a sav¬
tion to this, people have bought a
ings account for one out of every
two people in the State.
The net total of $1,160,000,000 in War and

587

Cotton Merchants Dinner
A

Williams to Advise Reserve

Victory Meeting and Dinner

will be held by the

Association of

Council in Philadelphia
/ David E. Williams, President of

Cotton Textile Merchants of New

Corn

York oh Feb. 1 at the Ritz-Carlton

Trust

Hotel, according to an announce¬
ment

Bell.

Guest speakers for

casion

its

will

President,

the

Ray

the

oc¬

Hancock

arid

Brothers

Reserve

Federal

the

Third

the

Mr. Williams is R director on the
boards of
and is

Cotton-Textile

the

representing

Comer,

President of Avondale Mills and
Chairman

System

(Phila.) Federal Reserve District.

Lehman

Hugh

Company, Philadelphia, has

beeit appointed to serve during
1946 on the Federal Advisory
Council

Secretary of

Agriculture, Clinton P. Anderson,
John

Exchange National Bank and

Institute.

„

corporations,

numerous

Trustee of the University

Pensylvania.

:/'>/^/V

v: v

sented

gain in the number of depositors

Victory bonds through the savings

for

banks since the Government pro¬

the

year

was

266,996."

likewise says:

"Furthermore, the gain

was

not

entirely due to "wartime" savings,
for

even

might

have

started in May, 1941.

gram

December,
been

when

expected

that

808,000

these

$56,-

purchases

made

during

the

Drive

which

was

Victory
114%

savings bank quota."

INDUSTRIAL, RAILROAD, PUBLIC UTILITY.
'

/•' ' 'VW*

' '»

and FOREIGN SECURITIES

were

Loan

the

UNLISTED

TRADING DEPARTMENT

"deflation"

can

occur—provided that in the
meantime the money-tide does

not continue its

1::.,.
At

.fu

the

audible

;

lie

ascendency.

Sum Up

present,

even

there

dissatisfaction

with

WERTHE1M

not

murmur

pub-

the

EMANUEL & CO.

on¬

slaught of price inflation. To the
contrary, the public is perfectly
willing to condone a "compro¬
mise"

New

New York Curb Exchange

MEMBER
NEW

YORK STOCK

N. Y.

EXCHANGE

Stock

Co.

•

N. Y. Cotton Exch.

Chicago Board of Trade

Cocpd Exch., Inc. Commodity Exch., Inc.

4//..12#ljsROAB

labor

trouble

acute

Teletype:,.NY 1-1693

52 WILLIAM STREET

NEW YORK 5, Cables: Wertma New York

for the

Telehpone:

NEW YORK 5,

REctor 2-2300

as the money flood—the pol¬
icy of large scale deficit spending

home

and

;

it?*-.-

abroad—continues.

$ ."$*$.

The

wage earner simply tries to
make themost of4hat. As a--*ule

he does

RE0RGANIWIUN & "WHEN-ISSUED"

in the primitive fash¬

ion of John L. Lewis, who drh^s
a

<*■:

bargain with the employers at

rise. Which

each time

they do anyway, and
labor troubles will

rise, causing

there
time,

in turn

SECURITIES

RIGHTS G SCRIP

Railroad, Public Utility & Industrial

was

one.

And

"*•

'•i

•

f f/t:. f

.
.

■'%iir,':*•

•

Joscphthal & 0a

'•

vi*-.-e/V*K,

every

production will be inter¬
rupted, if indeed it ever gets fully
underway, with no prospect for a
"consumers' strike" until prices
»have run up very much further,
: but with
good prospects in the

J?.

Brokers and Dealers in General Unlisted Bonds and Stocks

Bonds & Stocks

It is a vicious circle, if

ever

? >-*

price

Dealers and Brokers in

new

inflation.

the expense of the consumer. The
-CIO tries to boa»4ittle?mofe so^

phisticated,-realizing that the la/ borer's gain is soon lost if prices

•

N. Y.

long
at

Chicago Mercantile Exchange

solution of the current la¬

$ present, and chronic for the visi ible future. It will stay with us as
.

•

Exchange

New York Produce Exchange\

higher prices. This is what makes
the

York

Coffee & Sugar Exch., Inc. ,N. Y.

bor controversies and to swallow

MEMBERS

Ingalls & Snyder

MEMBERS

New

Members New York Stock Exchange
Members New York Curb

York

Stock

Exchange

Chicago Board of Trade

Exchange

■

Neio

York

Curb Exchange

Commodity Exchange, Inc.

meantime

that

the

incessant

in¬

dustrial strife will offer unusual

100 BROADWAY

NEW YORK 5, N. Y.

120 Broadway, New York 5, N, Y.
REctor 2-5000

Bell System Teletype NY

COrtlandt 7-6800

opportunities
for
communistic
propaganda to foster more strife.

19 Congress St., Boston 9, Mass.
Lafayette 4620

Roosevelt Dimes

Direct

•"

Bell System Teletype BS 360

Telephone to Boston and Private
To

Released Jan. 30

1-319

Correspondents

Principal

Wire System

Cities

Secretary of the Treasury Vin¬
announced on Jan. 17 that the
»United States Mint would begin
son

Brand, Grumet & Ross
MEMBER NEW YORK STOCK EXCHANGE

/striking the Franklin D. Roosevelt
dime on Jan. 18, while Nellie Tayloe Ross, Director of the Mint,
stated that on and after Feb. 5, the
•new

2the

coins would be released

Reserve

well

EXCHANGE

was

branches

later;

WHOLESALE DISTRIBUTORS

over

120 Broadway, New

York 5, N. Y.

Telephone: BArclay 7-2580

DEALERS IN

through the cashier of the

^Treasury.
known

and

Banks

YORK CURB

UNDERWRITERS

through the Federal

country

MEMBER NEW

made

Railroad * Public Utility • Industrial

that the release date had

been fixed at Jan. 30. The Treas¬

Department advices Jan.

ury

-said:

-i

The 19-cent

ing

the

late

Bonds and Stocks

{ • f;//:■

/,;•

piece commemorat¬

President

and

de¬

signed by John R. Sinnock, the

Chas. E. Quincey & Co.
•

pint's chief engraver, is of exactly
•

the

same

size and metallic content

the dime

''head,"

now

circulating.

ESTABLISHED 1887

Telephone

MEMBERS
NEW

YORK STOCK

EXCHANGE

NEW YORK CURB

EXCHANGE

The

obverse side, bears

/portrait of Mr, Roosevelt facing
/left, the. word Liberty around the

25 BROAD

STREET

NEW YORK 4

J • G - White 8 Company
INCORPORATED

HAnover
2-9300

37 WALL

/God We Trust, and the date,

1946, in the lower fight field.

•

System

Teletype

NEW YORK 5

NY 1-1815

1890

/
In

association

with
>/:-v

left border, in the lower left field
In

STREET

ESTABLISHED

| 1|§/j

Bell

Kirchofer &
RALEIGH,

N; C.

Arnold, Inc.

-t ■>

CHARLOTTE,

Thursday, January 31, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

588

After the Turn of the Year

Business and Finance Speaks

large industries. While the industry does hot itself have

(Continued from page 586)

HERMAN W. STEINKRAUS

the

problems of reconversion, it must await the recon¬
version of its customers. It has no extensive plant alter¬

President, The Ainericai> Insurance Company ,
As

the impact of the Supreme
holding that insurance is com¬
;

;

ratios in the fire insurance business.

taking stock
of their manpower situations booking
7 forward to a more aggressive mar¬
keting program through local agents
f and brokers during the year 1946.
The return of many qualified men
companies

Most

are

from the armed forces should stimu¬

.!#!«.,

several states during

The laws

the past years have been changed to
permit fire insurance companies to
write those classes .of protection-for¬

merly the exclusive charter rights of
casualty insurance companies.
Ag-

*..'gressive management,

; >

"As has been the
-

sumer

tion

were

demand

The

Cor industrial

wire

for

use,

well

record.

for

nickel

tho

„Cfte

ally being used for war purposes# It will take months
be replenished.
While the industry finds it is in this position of losing

before these stocks can

money on

Peacetime outlook for stainless steels is most
whlph

those industries demand is being made on every

current production, it is one of

in which the 30% wage

SteelsareS S

the

chemical,

are

industries.

food processing

transportation and
-

;

in|t^y belief that within the next three to six months

both the wage question and the
fully resolved, and also the remaining .
problems of reconversion from; war to peace completed,*
that beginning the second half of 1946 the industry

mills at Huntington, West Va.,
Birmingham; England, and Glasgow, Scotland, delivered
substantially increased quantities of vitally needed
The company's rolling

far ahead as we wish. The

tremendous*.. need

alloy¬

encouraging. -Some of the fields in which? the uses of
nickeJ.cbromium staMess

book,

the supply and we are able to
orders

1
'/
oh the brass !
industry for quick delivery of products to the general;
public at this time is the fact that during the war the
War Production Board created the Copper Recovery
Corporation. This government corporation bought from
every holder of brass or copper products any material
on hand not for war purposes, and they were legally re¬
quired to give it up—therefore all stocks in the United
States had been completely depleted, except those actu- .;

consumed by' the steel industry for
during the year, over 40.% went into
stainless steels.
The tonnage of stainless steels during
the past;three war years has averaged the highest on

"Of the

H.'W. Steinkraus

which

engineering steels,

although" they are under
consideration.
A matter which has puf further pressure

wartime

production had ceased. So
price increases have been

war

granted,

wrought; steels

far greater than

pultural, - remains

far

developed by metallurgists of industry and govern¬

agri-

when

ing elements, were adopted as standard by the American
steel industry during 1945.
These steels, which are
known iri the trade as 'triple-alloy steels,' contain nickel.

"Wire Company

products;

ment in the United States to Conserve supplies of

REUBEN E. SOMMER

Steel*

;

series

what would happen>

knew full well

This was dorie in addi¬
supplying Canadian, United States and British
requirements
at
greatly increased wartime

"Four

promising as to
premium income for those companies which sell aggressively. A small margin of profit should be obtained
through careful underwriting despite the trend towards
higher losses unless inflation grips our land.

President, Keystone

the inrhictrv tn nhtnin rpli<*f for thpv
industry to obtain relief, fnr they

the

annual rate more than twice as

schedules.

general the. outlook' for 1946 is

nickel

source.

last two year? by members of'

Approximately 60% of the

great as any year prior to 1939.

operations, involving satisfactory re¬
capital, surplus and unearned premium
reserves will continue to be a problem, particularly when
striving for safety plus an adequate income from this
In

of nickel in 1945.^

the United States at

invested

forts havevbeeq made over the period

nickel for

companies

turn

OPA, in March, 1942; Consistent efr

1942 through 1945, International Nickel delivered*
war purposes to steel and other industries in

years

7 The investment phase of fire in-

surance

past, the steel industry*

i-o+'inriH v\iWol
+U5r.
refined nickel deliveredrweiit into this field;' During

that could thus be obtained.

jp£ul B. /Sommesrs

in the

case

in the United States continued to be the greatest con-

doubt, will
survey - the possibility of multiple
line operations in the light of this
trend looking toward the economies

•

;

late this: activity.--1

mill products industry enters the;

copper

1946 with its books crowded with business; but at
prices on which it is sustaining heavy losses.
"Following the sharp, decline in nickel consumption V? During the war the brass industry;!!-!
:? :
7.
which: occurred at the war's close, the fourth quarter of
making strip, rod, tub?, pipe, wire,
the' year has witnessed betterment in the demand,> This x
and similar products, was working
improvement ,would; have been greater had it not been
100% for war purposes. It was pro¬
fon labor troubles -particularly in the steel'and automo¬
ducing around 400% of its normal
tive industries in the United States.
!'peacetime tonnages, and was show¬
.4"To provide ^or war contingencies, the output; of; ing reasonably good profits through¬
nickel was maintained in excess of requirements for
out...
I
;-n'- .
some
months prior to the cessation of hostilities with
When all war contracts were can¬
Japan. Stocks on hand were rapidly accumulating. The
celed on Aug. 16,1945, the entire in¬
drop in consumption which followed placed the produc¬
dustry went into red figures because
tion of nickel far above current demands and forced op¬
on its peacetime products .it had to
erating curtailments at International-Nickels Canadian
return to prices originally published
on Dec. 26, 1940, and frozen by the
year

:peac

continues to share the limelight with increased
'if: premium volume and higher burning

merce,

"... A brass and

nations to make in this transition'period from war,to,

enter the New Year,

Court Decision in 1944,

President, Bridgeport Brass Company ?'I

expect1 to! see

may

pric€ question

homes j and,

equipment of all kinds • would indi-^
cate

prosperity-for

come,

time

some

the Huntington Works, which was honored seven
timeshy the Army and Navy of the United States.

particularly, in view of the

"The end of the

great supply of money. We look for
several

years,

production

All decorative applications
plating had been discontinued under war conservation
measures. There was a substantial pent-up demand. Research and new developments in the past few years have

monkey wrenchs

furthered

into the machinery., it will be. a great

wealth comes only from

;the adoption

specifications

calling for

production.

ities and most others

ROBERT C. STANLEY

nickel in

plating.

onft

most

for

clvereRt

^ inHiKstripe::

Matiy^i

have already

important' progress, but-the
complexities of labor relations, high¬
er
wage costs, rising raw material
prices, scarcities of materials and
made

nickel

plating in its 1946 line of cars and trucks, which
will result in a marked increase in the consumption of

.business, nrnnagement,dn my
challenge since the outbreak of Xho waf.
course, have no special problem
in converting to peace-time activ¬

R. E. Sommer

;;

awt rrtmnanv

a
While 1946 should b4 a

thicker nickel coatings.
Nickel is already flowing in'
Sizable amounts into plating uses.
The automotive in¬
dustry in the United States is planning to use heavier

day when labor leaders realize? that

F: STERN

;.**■

President, Amcr can

almost immediate resump?

unless •somebody in

Washington throws

war saw an

tion of nickel electroplating.

at least, of high rate
;

l AWRENCE

"ceilings

selling prices will test the,

ability and ingenuity of employers
of ^upro-nickel in
of a. large segment of our workers.
Company of Canada
condenser tubes on large "ships and III piping in hayal vr
VUUW
W1
ldlgC Mlipa dliu in piping ,JU1 lxdVeil
It is apparent that -the restoration of
Deliveries of Canadian nickel to all markets in 1945
constructioh indicates broader use in peacetime appliCapeace-time efficiency* brings many
tions.
Much of this product will probably go into con¬
will.be approximately 25%, under the peak levels at- "1': +?'—
J---"
—
problems#
^
' i
*
'
struction of new commercial vessels, coastal power sta¬
tained during the war years, but will be in excess of all
Despite 'ibis; it is >reasonable to
tions, oil refineries and other equipment. .-t
but one peacetime year," Robert C.
•
assume that business actually will be
Stanley, Chairman v;and President,
"Due to war restrictions the use of nickel silver for
progressively better as the year goes
.The: International Nickel Company
civilian purposes almost ceased. ^ With the reawakening*
on. The strikes which we have had
of Canada, Limited; announced in a
of this market, production of nickel silver for
peacetime!:;! arid which we will have are no surChairman and President, The International Nickel

"The effectiveness

during the

war

„

»-

**•

1945 year-end statement.

"In recent

uses was resumed late in the third
quarter. Since then a!
large demand has been noted and a continuation appears
likely for'its many applications, a few of which are
silver-plated flatware, slide fasteners and hardware.

months,he

continued, "deliveries'
declined substantially front the cor¬
responding period of 1944.
.

"Production!

was

reduced

our

«Our company's stock of refined nickel at Port-Col/ /times and, on the whole; their effects are
a
borne is now exceptionally high due to lack of demand; -. nature so long as management
which is believed to be temporary
Many war uses of
periods of prosperity, agreements :f bet ween
nickel were-in industrial
equipment converted to war
■
services and these wffl now resume their
place as peaceo£
year
a
time applications. New uses for the metal have been

.employers^ ;
and'employees^will be workedlout. and the-S^fy'evd v.
production this
should reach reasonably good

reaching a high of 1,850 men in the
spring, and by a sharp drop in nickel
demand since August, caused by the
sudden cutbacks in military require¬

■"Up

V-E

nickel-went

into

United Nations.
of nickel and
Robert C. Stanley

and since then

practically- all

war

uses

Controls

use

nickel alloys were re¬

have again been free to pur¬

chase their full requirements.
"In the six years beginning

in September, 1939, the
company produced and delivered to the United Nations
about 1,500,000,000 pounds of nickel in all forms/SIts ca¬
pacity "was materially increased in these years through
expenditure of its own funds.
The rate of our refined
nickel production during the war years was about 50%
greater than in prewar years.
•
!

nickel

qualities.

the

moved by the Canadian and United
States governments in late August
consumers

developed during the
used

Day

war and manufacturers who never

previously have discovered its beneficial

Additional

durmg the war

peac^me apphc^ions uSrfeSed.-

years promise to

"Barring
dustry has
vorable.
vanced

any unforeseen obstacles over which the in¬
no

control,

our

long

range prospects are

World War II has utilized

equipment than

ever

enlarged

before and nickel

ployed in most of its construction.

fa¬

technically ad¬
was em¬

Since much of this

equipment will be produced for peacetime applications,
nickel's usage will be broadened.
?
;

"In meeting the wartime
requirements of the govern¬
ments in Ottawa, London and

nickel

"The war's end brought the nickel industry many of
the same unsettled conditions that now confront other

again enable the Canadian nickel industry to
markets

formerly."-

^ I were to make a guess,

Quarter of this year as the one in which most
occur and,_at

«...

I would select the, first.,

strikes will

the same time,

condensate for losses

to competitive materials.

'
Washington the Canadian
nickel producers hav,e jnade a remarkable war record
capacity of Canadian pro¬
ducers is nearly 320,000,000 pounds annually.
The larg- 7 through increased production, the furnishing of technical
est annual prewar nickel consumption by the world was ;
service, the assistance in conservation of scrap, and aid
approximately 240,000,000 pounds in 1937.
From this it
in many other ways.
It is hoped that these governments
would appear that Canada's nickek capacity is greater
will soon terminate or relax obstacles to trade and
than the world's peacetime requirements.
thus
;
i.
"Present

Lawrence F. Stern

of temporary.
is ^^abIefc^; in!Othe^> ,;

•

Canadian plants by a shortage of la¬
bor during the first half of the year,

ments,

prise to business leaders. They were
anticipated last summer at the time
that the war was drawing to a close,
Strikes as such go along with good-

serve

world

earnings for the first three months will be the least sat-?^
isfactory, and those of the second quarter will be some- >.:
what better. The first six months,.therefore,.should be
the most difficult for

material

difficulties

business as the full impact of raw
and labor problems will be felt.

Management's ability to deal with these things and to |
recapture the higher production per man hour which
was common to American business before; the war will
very largely! determine
half of the year.
In mentioning

profit possibilities in fhe - final!

first the unpleasant things business wilt-

face, I do not wish to minimize the many bright aspects.- ;
of the business picture this year. We have emerged from *,
the war with a heavy debt, but our wealth is still great
and the average amount of spendable money is large.
At this time, the available supply of goods is, on a
relative basis, at an all-time low. This means, among
other things,
for

that the back-log of orders cannot be filled
ot.be** word*. bos**^ss is in a sellers*';

long time. In

;■.

(Continued on page 590) ! ,t!'

!;!

Volume i63

Number-446(5

f |§§§|

THE COMMERCIAL & FINANCIAL CHRONICLE

589

sage,-reminded

that the

tries "of .'the'"world
•'

(Continued from page 533) t
it was witn tms 'in
-(view
:'ih.at '"the 'Congress provided price

ment, .it is unbelievable that there
still those opponents of price
control who would ;thjrow aWay

Price

controls

this

avoiding1 a repetitions of the
terrible .;; disaster-Hthe \cfia in i of
followed

fore production has caught up
with: demand and^ the, inflationary
threat has been removed;
."

moment

are

disaster—that

Big Men of Labor, and
Big Men of Business iquit this
tug-of-war for power. They each,

They must

are

control.
•

World

War I.

Must Have Full Production

11%: ig ^.constant.. source. of:

whole

production- to reach
demand, and there¬
after to stimulate both production
encourage
the level of

the wisdom of his

sees

and

program and .supports it..

^V
7
r That, - to :
me, ■ is a heartening
sign £ of a people alerted, and
educated to the problems of the

hour.

all

now

re¬

cognize it
answer

as elementary that the
to inflation' is production!

Let me repeat:
full production! *

demand.

We must have
.

We must have it

} ~ Bigi Men of Labor and Big Men,

;

too

much

said .yesterday,

already.

power

come

forward

the

interest

of America and settle
their, differences, otherwisevyour

appropriate steps taken to foster
peaceful ;: communication,*
trade
and commerce.; I wholeheartedlv
subscribe to that view.

Government will have. to. step irt.
there: will be the same^old

of too much 'Government.

cry

But it
much

hot

One of the impor¬

omy is our export market.
;We>
export the largest volume of prod-

ucts of any country in the world/
England is the largest importing

country

the

world...

.seems-

that if the commerce.

of the

In order

;

world,/including our own/
(Continued on .page, .591)^::

question of too

Government.

products.'

tant factors iaour peacetime econ¬

question of too much
kicking around of the public; and
you may be sure that your Gov¬
.

ernment

will

put

end to that.

Yes, put art end to that—for
President is

production, we must'treate and'
maintain, a sufficient demand for
our

;;|||2|The

Then

the. President

have

coun¬

interde¬

pendent; and that" they can1 no
longer exist in peace unless this
interdependence is recognized and

As ypu/knowv the Aplao of your
Government is to use all measures

en?

couragement to President Harry
Truman and, to his
Cabinet, and
to all those who make
up Amer¬
ican. Government, that the nation
as

It is time

these: national safety measures,be¬

tion,

are

determined to

your

INTER-CITY WIRE

SERVICE

exer¬

cise every power of Government

now.

his

command to maintain pro¬
^ATqmor^ow»may: • bpJtoo; la% ■
FAST
Business: came to Wakhin^ton
duction at its highest peak..
Today we do not have it.
I V
during- the War to assist; in the
Today;instead. We have the
Last night I was privileged to
vastly complex Administration of
spectacle-of some of our largest
our war
attend;
testimonial dinner for
economy, and they learned and most
vital factories standing two
great
the
Americans, General

AND

EFFICIENT: SERVICE

MAINTAINED

BETWEEN

THESE

CITIES

widsom of the Controls which
id)e, at a time when the demand
force;
for goods is
greater than it has
I This group^
newly educated in. ever been in the
history of our
the
processes
of
are now in

Government,
gives- strong
support to all of jhe
Administration's forward-looking
.

measures^.

However, while

men?of-labor

there

and

are

big?

are

Eisenhower

)H CLEVELAND

IN ST. LOUIS

prophetic

mes-

MISSOURI

SECURITIES

oUF

ovEU-TiiE-coonreit
TRAULVG

f
•

Special Sitiiatibns"

|Y" J

»E1»AKT.MK.\T
to

Department

IN NEW YORK CITY

is maintained for the accumti-

Banks^ Brokers

thematter;'ofprice contrail

For example, .we have the
.facts of
history5 to; guide? lis. It was con; tended

Chester Nimitz—both native Sons
Texas by the way. - General

OHI0 SECURITIES

complete facilitie8 of

fighting the reaction¬

a
struggle in which the economic
future^ of; our
country: is; at stake.

We extend the

ary elments Within the councils of
labor ancl
industry., ThCy, cham?
pion the cause of big-men-of-thepeople in your Government.
It, is

; r

big-ntenrof-

b'usiness, there are also just big?
labor,-men and big-business-men.
Big inert of labor and big men of.
business

country..

Dwight Eisenhower and Admiral

;

. .

•

and Dealers

f lation - or; ;plaqeinent; of
blocks

Ordjert executed

qri ajcommtssioh

has\s.

Over

the

-Stocks:and.JBonds,

jargc
OVER THE COUNTER SECURITIES

Counter

-!■:

that price control; would

hamper

war production. We know

howV however,-that America's pro?
.ductive capacity
during this War
reached

astronomical proportions
remains the5 greatest £ indus¬

and

■

cmiuonipcnMi

trial .miracle of all time.

-But• what

the

are

figures?

-■

facts

and

Ii^ World War I, without; price
control,

our

control, our production
116%. Instead of
r

Teletype Bids & Offerings

YOUNG & CO.r INC.

Tel. IIAnover 2-4850

WESTERN

PENNSYLVANIA
MICHIGAN SECURITIES

at oair expense

BELL SYSTEM TELETYPE—NY

jumped

hampering

duction, price

St, New York 5, N. Y.

IN DETROIT

SECURITIES

production rose 25%.
World' War II,' with
price

Membert New York Security Dealers Association

37 Wall

IN PITTSBURGH

1-1126 &

1127

pro¬

control promoted it!

World War I cost this nation
thirty-two billion dollars.,, World

War II cost this nation
three' huhdred and one
billion: dollars.
These expenditures, financed in

large

part

duced

borrowings,

enormous

the

over

IN YOUNGSTOWN

LANGILL & CO.

pro?

pool of liquid

capital which hangs
tion

IN CHICAGO

ILLINOIS SECURITIES

Luckhurst & Co

na¬

awesome, inflationary

OHIO

SECURITIES

Members N. Y. Security Dealers' Assn.

; That, to me, would seem to in¬
dicate that runaway inflation
after
this

could be expected to
be
much more disastrous than
the
events after World War I
as, say,
war

v as

the atomic

bomb,is to

cap
The threat of inflation is

Inquiries and-orders invited

pistol.
We

being

diligently attacked in spite of the
powerful forces that would, over¬
night, ^remove; the controls which
stood as bulwarks to make us.
as
victorious in our,
peace-economy
as

victories in

were

economy.
To appraise

fight of

your

inflation,

let

the

success

interested in block

offerings of

unlisted securities for distribution

War-

our

are

through

our

organization,

of the

Government against
us

consider

these

viacts^;-^
We fought the greatest
our

war

history with an increase in the
living of only 31%.' At the

EXCHANGE PLACE

NEW YORK 5, X. Y.

cost of

time" of

the

Armistice

Wprid

War41, however, the cost of living
rose e*a<itly twice this
amount; or
62%.

and

what

living reached 108%

year and a half after the

Inactive Unlisted

which

the

nation
war,

has

Was on V-J

INDUSTRIAL

INSURANCE

that-

victory for the people

should,Jieverlbe.-iforgottert!;

In the face of such

STOCKS '■

achieve

J31 >WLK STREET,: BOSTON 9, MASS^gg:^:?tgi|

V•>*

2-4?30

•

HANcock. 0170"t-> ' '%

* -tsrBell Teletype—BS- 51"
■Western Union .Teletype- *.', T.

'•

■

NEW YORK 5, N. Y.
v

■

U'fsr?*' :V -,\r\
N.Y. 1-1227

Bell Teletype

SECURITIES

paul d. sheeune 6- co
f

•

;

OVER-THE^COUNTi!

NEW ENGLAND 3BANK.STOCKS

not risen
1

BROADWAY

QocxAasi^ji

STOCKS

contended

Day;: * It" has

120
'•

Tel. WOrth

and, in spite of

penny since the War ended!

i~ That .is: a

War, '

this, today-^six months after the
victory > over; Japan—the cost of
living is at the same level as it
a

Securities

Keep in mind that the inflation¬
ary pressures ; in World >War% I
were
only a K fraction- - of those
with in this

0TburtdwJib QxiIilm/yiJi. SiacA

worse,
that
spiral of inflation continued until
the cost of

MMiieu«!

;-rvj

;

Speaks After the Turn of the Year

Business and Finance
(Continued from page 588)
market, and its prospective
buy its products.

customers are well able to

President, R. H. Macy & Co., Inc.
The year

serious

proper handling* this could-end in
inflation. On the other hand, it probably will result

nothing worse than some

increase in price levels. Cer¬

is over. As business goes along the
satisfying the enormous requirements
of our own people and of those in other countries whose
needs are even larger than, our own, it is readily ap¬
parent that there is no lack of demand. In other years,
when somewhat similar conditions existed, management
has been able to meet this challenge and nothing has
happened in recent years to justify any loss of faith in
I the native ability of our business leaders. A review of
these various factors, therefore, leads me to the confew

Company

In 1946,

industries

we may

expect

We have

Jack I. Straus

time industry

lines of merchandise and many
months must elapse before a proper balance between
civilian production and consumption is restored.
The present industrial conflict between labor and
management and consequent strikes have produced a
serious setbeck to the crying need of the country for a
rapid resumption of all-out production of consumer and

Government

the
owned

insurance

service

men

important problems of

•

and

re¬

adjustment. Rising expenses due to restored services
and higher wage costs will characterize operations in
1946.
Moreover, prevailing margins are likely to be
squeezed severely by rising merchandise cost and con¬
tinued price control during the first part of the year.

highest total in

;

Nobodyv can foresee what eco¬
changes may occur* in the
postwar period.
But the backlog of

John A. Stevenson
I purchasing power built up by warV time incomes; the thrift habits ;de,
,
>
.
■"
veloped by wartime payroll savings plans; the more

Intensive

cultivation

of the market

for

life

insurance

frozen foods last..

standing orders as rapidly as conditions permit, better
turnover, better utilization of facilities,- improved me¬
chanical aids where possible, revived sales arid executive
training programs and intensive preparation for a better
all-around merchandising and selling performance. Sus- "
tained profits will result from these inore efficient oper¬

people's ability to build estates and to make
high-bracket incomes by increasing in¬
all these are among the important factors
which would tend, to support a rising life insurance sales
curve.
Moreover, this rising life insurance sales curve
has a significance beyond the life insurance business, for

;

time has the threat of inflation .made it

im¬

President, Trust Company of Georgia,

Now that the

tional need for
and

|j|

stores.

war

new

goods.

seems

little prospect of an. early upturn in the
.returns of the life insurance companies.
The unfavorable effect

net

|insurance companies on disease of the heart and arteries,
bound

eventually

have

favorable

effect

future life insurance costs.

During 1946 the attention of the life insurance com¬
panies will, naturally, be focused on questions directly
affecting the business such as the authorization of new
life insurance mortality tables which will come before
several State

Legislatures, including New York, and on
problems occasioned by the Supreme Court's decision
holding insurance to be interstate

commerce.

Obvious¬

ly, however, satisfactory progress in the life insurance
business

must

the country's

reflect

satisfactory

progress

solving

economic problems and the life insurance

companies must shoulder their share of responsibility in

arriving at these solutions,

tendency for this number
out, it is due for gradual
increases up until May.
Many eligibles are accepting unemployment
level

Robert
..

Strickland
..

shipbuilding

standing the fact that employment
is available at higher wages and, in
many instances, are declining prof¬
fered jobs.
As
an
illustration, construction
mechanics are generally plentiful in
this area.
After the closing of .war

projects they

plants,

which

are

very
now

Notwithstanding the high

largely entered
almost

wage

savings.

Meanwhile,

our great textile industry will be busy,
nearly all of our pre-war industry will likewise
produce fully as rapidly as materials are available.

and

•

interim, accumulated savings of war workers

and service men are
keeping retail trade at high levels.
Unemployment indices do not reflect fully those not
gainfully employed as many not now working are not
applicants for places through any of the employment

services.

They will not be until their savings

run

low. *

The long term outlook for the
growth of Industry in
.the Deep South States is good.
We shall have to shift
from a nearly 50% agricultural
employment to vastly
increase our approximately 7% industrial
group.

must

enlarge

and

Van

Bomel

123 billion pounds in- 1945 set.
Nevertheless, dairy products still fall
far short of the demand, particularly in the case of*
butter and cheese. There are several reasons for this.
an

construction

In the

were

tion of approximately
-

entirely
scales in the
industry many of these unemployed prefer
to accept
unemployment insurance or to live on existing
closed.

much

dairy products has continued sinfce ;
V-E and V-J Days.
Milk produc¬

benefits for the full period notwith¬

to be

mortality
; was not as serious as anticipated at the outset, war
! claims between Pearl Harbor and V-J
Day being only
;6% of the total death benefits paid by the life insuriance companies. Moreover, the medical advances made
during the war and postwar reasearch projects, such as
Ithe cooperative research being undertaken by the life
are

there is

life insurance costs of de¬

die war's effect

total of 296,-

000 in six Southeastern States. While

interest

clining interest yields has been offset, in part at least,
by favorable mortality .rates. The health record among
life insurance policyholders during recent years has
even

At the first of the year it was es¬
there
were
80,000 unem¬

in view of the large volume

;of money available for investment, there

excellent and

factories,

timated

very

value, milk, cheese and ice
also consumed in much
larger quantities by workers in fac¬
tories turning out war materials.
Increased purchasing power stimu¬
lated
a
high civilian demand for
dairy products. As a result, even the
increased milk production fell short
of the demand. Shortages "for civil¬
ians
developed in butter, cheese,
cream and other dairy products, and
rationing was necessary to spread
the available supply as equitably as
possible.
The unprecendented demand for

of building materials is

ployed in Georgia and

energy
.cream

na-

stabilize.

31, 1945 the U S.. Government Bond holdings
of all U. S. legal reserve life insurance companies totaled
over. $20,000,000,000 but it is clear that
financing by the
United States Treasury in 1946 will be on a greatly, reduced scale. It is true, also, that most corporations now
are in strong financial positions and many are able to
undertake their reconversion projects without resorting
to new money financing. There. are
others, which may
believe it advantageous to borrow at the current low

been

in homes,

BOMELJ1S I fiffi#:

greater degree than during; any pre¬
vious war.
Because of their great

the South shares the

construction

On Dec.

level of interest rates but,

L. A. VAN

product&rt
the <Uhited states /was increased
substantially during the war. Dairy -*»
Dairy products were included in the >

increased, arid when mechanics are
again available, for work, this vac¬
uum will quickly provide
large em¬
ployment, provided building costs

rather than allowed' to compete for the available supply

■

over

When production

portant that dollars should be channeled into savings
of consumer

Through the efforts of; farmers, the "dairy industry,

Atlanta, Georgia

vestments;

diet of the Armed Forces to

canned

-and^ceijaln branches*? of the' Government, total milk

ROBERT STRICKLAND

real increases in

both

President, National pairyProducts Corporation

and juveniles and the wider adoption of
employeeretirement plans; •. the effect of I present tax

My best guess is that the shortage on macaroni products
be taken care of first, canned foods second, and:

't among women

rates

Tenderohi that prevails

will

These include better balance of stock's, reduction of out¬

ations.

on.

foods and frozen foods.

nomic

We have another division to our business; '/the Ten-"
deroni end, which is a special improved short cut mac-;

situation

management to return promptly to those tested
principles of good management which, for one reason or
another, have been impossible under war conditions.

As regards frozen foods, there is a tremendous market
waiting there, which currently cannot be taken care of;
by anyone due to lack of production facilities..^ I believe

aroni, which is moving very well. We .believe the mar¬
ket will continue on this, but there is not the; scarcity;

retail

will stimulate rather than
discourage regular life insurance
erage,

freez¬

it will take three or four years to catch up on this item.
'

A moderate decline in sales volume would increase oper¬
ational difficulties. It is therefore most important for

by "raising sights" on the
amount required for adequate cov-

J women,

stake in both the canning and quick

There is a tremendous deficiency in dealers'; shelvesthroughout the country on canned foods which has to be
filled, and I do not believe it will be filled in the current,
calendar year.
In other words, I expect a shortage for
at least Another 12 months on canned foods in general,
although there might be particular items which would
prove an exception to this rule.
<

■.

ing industry.. I think the prospects in each branch of
our business are excellent.
v' •' I

many

durable goods.
The retail industry faces

President, Stokely-Van Camp, Inc.

further

W; B. STOKELY, JR.

gets into full swing to meet the large replacement de¬
a long war has created. There are still acute

shortages

history of the business. Moreltover if World War I history repeats

civilian

well in meeting these

mands that

than problems of immediate re¬

$155,000,000,000

insurance—the

sales,

that

seen

ments and perhaps some temporary
declines in income payments until peace

the

■

ported from our colleges, to build in the next generation
approach to industrial Utopia which has been,
in our nation.
I '

the nearest

It is re¬

.| approximately

extent, con¬
accumulated

importance.

...

purchased by those in the armed
I forces, the American people owned

some

have drawn

contraction of Government disburse¬

At the end of 1945, in addition to
the National Service Life Insurance

now

So it is my view that the Deep South States, not yet1
our national industrial,
life, will undergo many growing pains in the near future,!
but that it now possesses the capital, and will retain
the "know how" it, has heretofore in large measure, ex¬

tensions

war

heavy merchandise demands.

v.;

from

buying. To

markable

conversion.

itself,

having shared proportionately in

have done

wartime to peacetime economy,
life insurance companies face problems of long-range

tion, better living standards, more stable government,
dependable industrial relations,
" ;|

and
y;

relief

been of minor

In the transition from

life

These advantages are translatable in the course of
relatively short periods of time into increased produc¬

savings, but thus far this factor has

JOHN A. STEVENSON

of individual freedom.

Government1 disbursements,

that

sumer

I1CSS

sumers

that, on an over-all basis, we are going to have
prosperity which will be beneficial not only to em¬
ployees but also to the shareholders in American busi-

development rather

Purchasing has

$ has also stimulated considerable con¬

•

rapidly.

clear

years,

President, The Penn Mutual Life Insurance

equalization, can remove. They are in part • physical,"
arising from the warmer climate, and in part moral, aris-ing from a greater regard for spiritual values as ex¬
pressed in religious attitudes, respect for law, and a love

separation payments in industry and
by unemployment benefits. It seems

elusion

The South enjoys certain definite advantages that no
legislative program, or other premature artificial wage-

Contrary

sustained by the high level of

ume

flood before the year

•exodus is likely.

high record for

activity in industries other than man¬
ufacturing, the continued large vol-

reaching our markets; now
;

fallen off
been

trickle of their products which are
can very well turn into a

the

store; sales.

new

to expectations last
summer, the end of World War II has not- resulted in
sharp declines of retail sales. While
industrial production has declined
sharply, income payments have not

try. We should not lose sight of the fact that, while
strikes are head-line news, the bulk of our companies
at work, and

1945 has established

department

tainly this will be true if the things which are inter¬
fering with production at the present time are substan¬
tially lessened and .management can;' again resume pro-:
duction on the scale characteristic of American indus¬

are

roll money here, but with war expanded facilities to beabsorbed in their present locations, no early or general

JACK I. STRAUS

Without

Thursday, January 31, 1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

590

expand, with our own capital, and |
energies, much of our present manufacturing structure.

all time high.

First, consumers are more conscious than eyer before
of the. nutritive value of dairy products In their various
Second, the cost of milk arid other dairy products
is very reasonable in comparison with that of other:
energy foods. Finally, high purchasing power has un¬
doubtedly been a contributing factor.
There is every reason to believe that- this situation
will * continue through: 1946, and that .the demand -for >
dairy products will again exceed milk production. Con-.
sequently,: Isome; dairylitems will remaih : difficult toobtain. While every effort is being made to> stimulate *
an even greater milk production in 1946, it is not pos¬
sible now to say how successful, this*effort will-prove j
Weather conditions during the Spring and early; Summerforms.

always have an important bearing on- milk production,
as well as on the growth of. feeds for use during the sue- ;

iceeding fair and:winter,.

It is, of course,^ impossible to

predict what the weather, will be.
Looking forward to future years, an increasing per
capita consumption of dairy foods seems likely. Mil¬
lions of young men and women have formed & taste for
them while in the Armed Forces, and public understand¬
of their
rapidly.
ing

important

nutritive

value

is spreading

The war and its food requirements provided an added
l stimulus to research in the; dairy field, and a number ■
I of new by-products of milk have been developed. Pen¬
and if they expect to enlarge their sales in an improved J icillin, streptomycin and the amino acids are examples of Southern market, they must spend some of their pay¬
(Continued on page 592)
This is not to rule out the coming here of branch factories for national companies.
They will be welcome,

Volume 163

Number 4460

THE COMMERCIAL & FINANCIAL CHRONICLE

'591

price
safe¬
guard for the public in that Act.
thority

PricRaiicL Other Controls
(Continued from page 589) *
become healthy again then
Vmuchc depends • lipori what England

heretofore mentioned.

and

the

States do

United

■I in

normal

timfes

say

freely

re-

will

the world.-. In: short,
us assurances of an ex¬
panding market for our. products;

business

over

assures England of the

y
;

opening of British markets to

our

•

United

commerce of
two
important members of the United

Natiofts,;it thereby; contributes to
the health and growth of the trade
and commerce of all the world.

There
prophets
There

are

cry .for co-:
Some want coercive

erCive laws.

laws against One group-mothers
against another group.
It seems
that the selection of the group

pends only

the

Labor

Resraints :3 r

start it,
Coercion

once you

force.

Ours

system that

negotiation and arbi¬

and • a

meeting

the

Disputes

1*1.

•v

'-bther^lah'ds

able to
these restrictions: then the

posal.

{

.;r

disasters

economic

become

the

fair

decisive

settlement

Kidder, Peabody & Co., 17 Wall,
Street, New York City, members
of the New York Stock
Exchange,
announce
that Capt. Francis J.
Cunningham, A.U.S., has returned
.

to the organization and has been

appointed manager of the
institutional

trading

firm's

department.

toss away their free-

R. H. Johnson & Co.

both.
As

Established 1927

..yony- Attorney General, my

INVESTMENT SECURITIES

64 WALL STREET

NEW YORK 5

A*'

BOSTON

PHILADELPHIA

Troy

Dallas

^Repressions''

Buffalo

Wilkes Barre

Syracuse

Baltimore

Pittsburgh

Williamsport

Springfield, Mass. Woonsocket, R. I. Harrisburg
Washington, D. C.

1946

Members

16 Court St.
St.,'

New 'York

Scranton; Pa.:

*
<

We are specialists in the retail investment field. JOur
retail salesmen in; 10 states enable us to distribute ainbrig
real dhxyestor^ attractively;situat$(t^bonds and. stocks.

'.Security^.DeW^r,s^>Association

B'klyn 2i; N^Y^-vC;;; :^*?t.-T€l^TRian
-TRiangle 5-5054

We have participated in estab¬
lishing the United Nations OrganJ ization to end the scourge of war,

LISTED

2 ;

the

ideals

implicit

DEALERS

that

strictions

SECURITIES

and:®i0KE^?iri

traded

=r-c%-

{organization will be meaningless
{unless the peoples of the earth cari
t truly work; together to end; re«t

Listed and UnlistedfScfenrities
I

OVER-THE-COUNTER

trade and commerce,

thereby

establishing one of the
{foundations for international pros1 perity.; Need I; remind yon that
fe i our prosperity depends upon"the

| prosperity of the
v

;

•

'py

v'^

.J-

Dealers

2-9667

YOnkcrs 3-0S55

Bell Teletype—Yonkers 2318

Meixibers New York,

BROTHERS
Philadelphia and Los Angeles

Stock Exchanges"

-r

Securities

-'y'2

Yonkers 2, N. Y.

New York City—LOrraine

BUCKLEY
.*. v r

of Securities Dealers, Inc.

SERVING DEALERS FROM COAST TO COAST

NEW YORK 5, N. Y.
.

1920

SUETENDAEL & CO.

Members National Association

Over-The -Counter

Servicing

*•'

Telephone WHitehall 4-5461

Dealers In

A. O. VAN

.'^41 •'.{

viV?

ESTABLISHED

;;C':

SO S. Broadway.

80 WALL1 STREET

secure a guarantee
from the United Kingdom to re- i
2 WVe all of the restrictions I have

:.r

INCORPORATED

{ terest, but we

>{.-1

Kromer Jc Goivipany

to
will

I make this loan.1 We riot oriiy
the repaid the
principal with in*

•

Reorganizations>

Member Society for the Advancement of Management

world?

It is good - business for

Industrial

Private Wire System between

from1

Philadelphia,

New YorU and Los Angeles

!U;

•

Cbast
MM

ib
to

1529 Walnut Street
Coast

BLAIR F. CLAYBAUCH
•

•

CO.

Member Philadelphia Stock Excharige
New York Security Dealers Ass'n

72 WALL

STREET, NEW YORK 5, N. Y.

Tel. WHitehall 3-0550

Syracuse
•

Tele. NY 1-2178

Harrisburg

Miami
Own

Private

Pittsburgh

Beach'
Wire

System

' I

Philadelphia
vj

LOS ANGELES

NEW YORK 5, N. Y.

14, CALIF.

530 W. 6th Street

63 Wall Street

Member

;

HAGERSTOWN, MO.
Wareham Bldg.

PITTSBURGH

SAN DIEGO, CAL.
625

19, PA.

Union Trust Bidg.

Cunningham Dept. Mgr.
Peabody

SecurityAdjustrrientCorporation

warfare

so vivid in our minds;
and economic
warfare, as we all
know, is one step from war;

I but

then
in

j which are
•

publicize

At Kidder,

suggested, as you know,
the strengthening of the Concilia¬

elimiriate^imiiar'- restrict

f arid
the/commerce of the
world will be,immeasurably benefited. The alternative-leads to the

Uions

and
.;,

give

He has

other nations: of, theVworld will be
able to -

-I

facts
-

labor-management disputes.

problem, the President has
intelligent and democratic pro¬

^^j^jnij^RSiness
AndiFmarieialf'G^les

ii'

would

ment
an

factor

him" your full support,
Similarly,
in regard to the labor-manage¬

dom;-to{^ab at economic security,

{?-iriicludirig'"Ml^W^

;;;

will

the
,

iThe strong arm of public opin¬
ion—your opinion and mine—

recom-

can

operating

now

f^cjliyb, in an age in which we
"ha^ie^eri^ight;urider: our very
i^ris^djiii our time^peoples; of

"Business Booms

Britain

has

and

Albany

•ridw^in ;fact, the

■

,•«

;liberty^w'e enjoy. •{,/:

Boards,

secure

and on

year,

progress

...

tion Service in the Labor Departis slow- merit,' He has also
proposed the
not be settled with a granting of
power to the Presi¬
stroke of the pen because we haVe dent
to
appoint Fact Finding
never .given
power like that to Boards for the
prevention of stop¬
anyone's pen, and we never shall, pages of work in nation-wide in¬
•^om^price must be paid for the
.

Sometimes

f -il'

These

its extensiorirand T feel
that as a thinking and
ylou'concur (in this

recommendation

canriot{make mm{dn
I{ot2us Prmei Controls Jealously Guarded
not-forget: thafecoercioriVriot^riM
'ii i-in
p^Tj^;|«jCpngresshas jealously
has dts
limitations, but {also ^itS{fguarded^rid properly so, its au-

^ merce; to
; i the United;-Kingdom is

.•

over

•

X A.

been

during

articulate group

encourages

are

has

Act

all

one

President

Your
certain

reduced "its^export Com^

remove

Control

them.

mened

believes in letting off steam, that

soriie things on whichcannot legislate successfully

I restrictions ^ith<mf^capitai■; to fiJ nance ?the f resfOratiQrf of: its pro-

•

de-f,

to- the!

answer ?

dustries, but only after collective
bargainings and conciliation and
voluntary arbitration have failed.

extended for

adyice;is/against any type of co¬
than you can. legislate ercivelegislation.. ?...
■ v.V
away the rising of the sun or the "tiThis is' not the
country for that!
movements of the; tides. There*# d-t^is not f j u stice!
It is not the
a
homely expression for, it:>yYou^ ;.democratic{ way!
can lead a horse to;water
S
•'
.but; you

•; which if imposed for its self-pro2tection. It cannot eliminate these

"blitz"

interests

any

^Kingdom • to; eliminate"wartime

•

;•

under wartime emergency powers,
would
have
the
authority
to

answers—it

History

coercion,

For

Price

temporary

other

tration,
^perhaps minds,

you

:restrictiori^on;^rad^arid curre^

•'

the 'land

merely by impatience;

And

is riot a one-way street.
begets coercion.
Ours is not a
system that is hospitable to ideas

fear ; and
despair.
those whor motivated

by.• - selfish

there

duction. and- commerce.
has little to; sell

Wants

•

abroad

are

But wd are lawyers trained in
careful thiriking, arid we know'

Kingdom,, which is
'>now before^ the vCorigress ior approval.
\ ? ' " '■
^ .What is this agreement? ; Is it
a gift?
NOj definitely-notr It is a
loan that will 'enable, the United

restraints?

will.

international

reference

It has placed every

the
war period.! In fact, the grant of
authority under the Act has never
a

Will not labor restraints lead to
restraints?

the

means

invoked

The

June 30th it again expires.

fpr.vtlje restoration of her corii-

question of whose steer you wantbranded.
Some, I am sorry - .-fo'
say, have hate in their hearts.

products on fair and non-dis¬
criminatory terms.
You, in Indiana, have an important interest
•, in these outlets
for your .produc-"? tion and thus you have an important interest in the proposed fi? nancial
a g re e. m e n t heretofore
i signed by the United States arid

against one group
against an¬

use

not

Jmerce; % and,iri; thus securing the

•

ourselves:

ask

other?

f erence between prosperity and de^ pression to the United States, and
-even' iri depression C years;. it" is
2 interesting to know that we ex¬
ported some 8% of our entire
: agricultural' and
industrial proEduction.
For; every two pounds
?' * of tobacco we consumed in rieace■'.i time, we sold one pound abroad,
\ and for every bale of cotton, we
sent one into foreign commerce.
Before the war, nearly 40% of
all of our exports were sold to the
British Empire.
This is evidence
,' to
me that every section of this
v country and every, American, inr
dustry has a vital interest in the

Let

that its

it affords

dif-

the

means

Once coercion' is. used, are those
who' recommend it prepared to

This com¬
will > protect .our trade
from discrimination and
permit
American products to go more

establishing their export and import trade.'„•
' A healthy foreign export trade

•

dangers.

mitment

is 1 to

with

control.

Broadway

592

Speaks After the Turn of the Year

Business and Finance
:

- •

;

• •

•

■

(Continued from page

590)

-ofcwhich
important part. .I be¬

by-products have played an
lieve these developments are in their infancy, and that
the future will see great advances in milk chemistry

milk

dairy research, leading to
milk by-products for use as

and
new

the discovery of many
foods, for supplemental

medipinal and industrializes.
,
profits will always be influenced by
purchasing power and general business conditions, I am
confident that the dairy industry has great possibilities
for further growth and expansion, both in the sale oL
its present products and in the development of new ones.
While sales and

machine.
It

BRADFORD H. WALKER

Company of Virginia

comes.

i v,v.

t; 1V •{•

yf :i,•

delay.

for the

demand

centive

With the

'duction.

iwe

enormous

should

entering

period

that

true

some,

war

following

decreased

extent

and

save

invest

of the dollar

the

the highest standard

potent

jof living this country has ever
jknown.
j If labor and business get together

optimistic that during the

year

shall

immediate

area

air transportation
commercial

that of the

whole,

The public is aware

about

4J/2d, will be even further reduced

adversely affect such
ar¬

warrant.' Naturally, such
of operational costs could
tendency.

of airport improvement in¬
volving extensive Federal as well as State and local ex¬
penditures, will make possible the rendering of service

in both labor and

industry, and I trust that we may ac¬
complish this without unduly calling upon Government
to act as the arbitrator. The more we can rely upon col¬
lective bargaining and the law of supply and demand,

ex¬

t""'

economic force for reconversion, peacetime

level

ent

rive at reasonable compromises between the extremists

;

when technical improvements
factors as the prevailing levels

assured purchaswe

made speedily

they were a Yital
transportation.
substantially
expanded use of the more recently developed types of
planes, inasmuch as most of this larger and newer equip¬
ment ; wj 11 not become available until 1947; • It is to be
expected, however, ;that passenger fares; which have
dropped from 80 per^ passenger-mile in. 1930 to the pres¬

incentive to save

1946

"f.f.'

It is not likely that 1946 will bring any

ing power and earnings.

;

-■

commerce; and military preparedness as
force in maintaining effective wartime

proportionate to the risks that investment;
There would be

equally encouraging pic¬
of the importance
of expanding the air transport industry arid appears to
feel that * airlines, if rapidly expanded, can become as

productive enterprises,

jume of business* ancl with the in¬

government reduces

war

•

types of product

turn from the outlook for

we
own

ture is revealed.

If there is to be a continued in¬

glow of health.

and invest unless saving and investing

our

every

our

airline industry as a

brought about by war are either normal
We must not mistake the flush of fever

always involves.

jand

effective value.

Ihigh employment with a great vol-

accelerated

program

of the country which are not presently
- Hand and glove with such
development should come within the next year or two,
Bradford H. Walker
the sooner we shall arrive at a fair and normal basis.
come.: - ■'
the development of a policy which will call for the
The great need of the world today is for the production.
movement by air of all first-class mail, arid perhaps
of useful commodities for constructive uses.
America
LOUIS WAKE
feel post, moving for distances in excess of 300-400 miles.
must assume its role of provider to the world in con¬
President, International Minerals and - Chemical Corp.
High military officers have recently pointed out that na¬
nection with most of these products, and the sooner we
tional defense will be substantially strengthened if at
In a year-ending-statement to the "Chronicle", Louis
get about it, the better.
least 4,500 air transports are in the. service pf commercial
air, lines.
These planes would represent an auxiliary
C. C. WEST, JR.
Corporation, said that mechanization,* research and the
force available to the military in the event that condi¬
intelligent use of plant foods made
Vice-President, Continental Air Lines, Inc..
tions should require their use.
it possible for 7,000,000 fewer Amer¬
If a nation can achieve
the dual purposes of facilitated mail movement, profit¬
During the war period. people have stifled a natural
ican
farmers than
there
were
10
desire to travel. Vacations have been foregone, convenable operation of its postal department/ and the achieve¬
years ago to produce approximately
tions have, been postponed, and even vital business travel
ment of greater national security through; investment in
25% more foodstuffs annually dur¬
has been held to a minimum.
The
the future of a major industry, certainly no serious ques¬
ing the war years. Yet, he believes
summer of 1946 should bring an eas-.
tion can arise as to the desirability of such a program.-: j
r
farmers need have no fear of overing of military as well as reconver¬
production in peacetime if present
R.B. WHITE
employment levels are maintained.,, sion travel' Which will make it pos¬
sible for people to vacation, attend •-* v
Concerned with the welfare of the
President, The Baltimore and Ohio Railroad Company
r conventions, and attend
to business
fnation's farmers
because his
firm
The business outlook iri this country for the year 1946
with a facility not enjoyed since the
h-;
is the world's largest miner of phos- ;■
is one of both high promise and challenge, in, the sense
beginning of the war.
phate, a dominant factor in Amer¬
that an unprecedented volume of industrial arid trade
Informed observers believe Eu¬
ican potash production, and a manu¬
activity is in sight if the necessary
.' ropean resort areas will be unable to
facturer of fertilizer and other min¬
unity, effort and understanding are
serve vacationists adequately
before
eral and chemical products such as
forthcoming.
! ""
j
1947 at best.
For this reason the at¬
the
amino
acids,
including
mono
It is very difficult jto forecast with '
tention of' millions who desire to
sodium glutamate, Mr. Ware warned
even
reasonable accuracy, f a; .railtake vacations will, .we believer be
against the "theory of scarcity." The
f road's business for the coming year.
focused upon the beauty spots, re¬
War proved the world can consume
Louis Ware
£ Since they have no reconversion
sorts, and dude ranches of the Rocky
every item the farmer can raise, he '
problems, their job being the same
pointed out; but it will take a sound j Mountain area, Pacific Coast, and
in war or peace—to carry traffic-—*
Mexico.
Much of the western area
economy in our own country to -help insure the ability
their first problem is to improve
of the United States offers unsur¬
of the rest of the world to purchase, its needs.
their competitive position
and tor»
passed fishing, big game hunting,
As, an example of how the use of fertilizer has enabled
replace and modernize equipment..:
mountain climbing, and general out¬
Col. Ci C. West, Jr.
farmers to increase production, Mr. Ware
pointed out
The amount of revenues the rail¬
door sports. In season, winter sports,
that in
1943 American farmers produced
r
'
513,322,000
roads receive will rise and fall, with
bushels more corn than in 1929—and on
including skiing, skating, and tobogganing may be enj
3,350,000 fewer
the volume of industrial production.
acres. At the same time, the
joyed. Along with these advantages, the area is favored
percentage of the country's
with such natural scenic attractions as Carlsbad Caverns, ; If reconversion of other industries
corn crop which'was fertilized rose from
penses,

When
„

then there must be a determination to make the value

creased wages,

period, when

destroy vast quantities of material without

desirable.

conceivable kind of goods,

If or every

also

not

can

Of course, we read of the inflation
"threat and the cure for this is pro■

end

which are pres¬
ently being transported by air out of the Rocky Mountain
area
includes the following articles: Carnations, celery,
mushrooms, mountain trout, cantaloupe, turkeys, broil¬
ers, ham, bacon, an,d many varieties of valuable furs.. In
turn, traffic coming into our region includes such things
as West Coast flowers, lettuce, and grapes; Eastern fash¬
ion-styled clothing, strategic machine parts, shrimp, lob¬
ster, and many other seafoods. It appears that the magic
of air cargo, both via air-freight, and air express, will
open up new vistas within this inland region. pVs'VVyV-'

been

the conditions

*"r !*:

"Aft?/'*

-•

the

An illustration of the

reducing the value of the resources of which the dollar
is only the token, but we must certainly not assume that

opportunity if the wage question is
...

dollar

feel this country as a. whole
should be, entering an unparalleled
I

settled without further

that

produced pretty much regardless of
cost and wages have been paid regardless of output, that
wage earners find it difficult to adjust to lower 1 in¬
have

goods

Chairman, The Life Insurance

•

natural

foods which will be

numerous

available.

■

feeding and for

■

tent in the

That issue depends primarily oh how much human
labor the dollar will buy. Too often this fundamental
issue is not clearly presented.
The wage earners of America are also the owners qf
capital to a great extent. Their bank deposits, life in¬
surance policies, holdings of shares in corporations; and
the currency they carry in their pockets all will be
•affected by the outcome of the decision as to what a
dollar will buy. We use the word "inflation" to indicate
a cheapening of the dollar and inflation certainly is not
only destructive of accumulated savings but it also is,
in the long run, destructive of our whole industrial
buy?

the production

benefits to mankind in

recent

Thursday, January 31, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

be able

then

should

|enjoy pfdsperity for many^ years to

many parts

favored with air transport.

(

!Ware, President of International Minerals & Chemical

■

15%
'

to 23% in 1943.

in 1929

GEORGE AVERY WHITE
President, State Mutual Life Assurance Company

year 1946 can hardly equal 1945 in recording sig-

t|nificant world-wide events. However, it is likely to have
even greater bearing upon some
[i future economy than any previous
! year within our memory.

phases

I an

winning

have

made

which

World

choice

War

our
;

before

shall

go.

involves,

look
considerably above the normal peacetime
level, although less than the war

Some

possible to choose in

direction

The
>

travel

included

the

ford

| as to price and

wage levels.
Much
discussion today' seems to

the

fof

assume

that there is

between

labor

;

and

J industry.

management, or
Actually the conflict is

jnot that.

"Management" represents:

our

industrial

that

concerns

endeavoring to stabilize
■

level
of

at a

investment.

the issue

our

industrial

V"
.

much

desirable

merchandise

Georse

;

strife is the effective value of the dollar.
how

white
,

for the first six months of

1946 will be lower than

months. Final results for the year should
average between those for the years 1941. and 1942. The
indications are that passenger revenues for' thfe^ year

making concrete plans and saving money for a
post-war trip, while an additional market of 22,000,000
made up its mind, and is waiting;;
to be sold." >
.* **
'*
i,!

;

1946

may

surpass

the jpre^war years, due to

the, con¬

Army and Navy personnel,
Although air passenger travel is naturally more spec-v
especially during the;first half of the year. ^ ' Y ;. "
tacular than the movement of cargo, 194-3 will doubtless *
An Interstate Commerce Commission survey indicates
see
Substantial expansion fof the air-freight program •
that the railroads plan an estimated capital expenditure
which'many commercial air lines are now initiating, on
of over $1,600,000,000 in .the next three years. Orders
a full scale.basis.; Air-freight offers the business man a*
for great numbers of- passenger and freight cars have
means of widening the market area withini which he has f
been placed and the roads will add to ;Uieir equipment,
tinued

business.-Air-freight makes-

feasible the maintenance of low inventories because ad¬

Fundamentally,,

involved in

for the. last six

now

I been accustomed to transact

;

which will preserve the value

the

heavy movement of

»,

speaks ,in
wages

•

and it is for

management

the great body of investors who own

jthem

.Correspondingly*^ it is estimated railroad freight rev¬
enues

X exists which has not yet

basic conflict

confront the railroad in¬
dustry today. The demands being made by labor jeopar¬
dize the ability of industry to earn a fair profit and
increased operating costs will- make ^ it :'imore; difficult
to compete with other kinds of competition. However, I
believe clear thinking will prevail, and that these prob¬
lems will be settled satisfactorily to both management
and labor.
If price increases are allowed where neces'"safy/it would seem industry should be ready to go ahead
by early summer or shortly thereafter on an unprece¬
dented peace time level.

University, for the Pacific Advertising ^Association.

are

can

Troublesome problems also

Professor Faville states, and we quote: "Surveys we have
been conducting . . . indicate that 15,600,000 Americans

bulk of Americans than the decision

railroads

years.

1944 report pre¬

factors, but none perhaps more sig¬
in the lives of the great*

nificant

the

forward to freight traffic

interesting factual material on probable volume

vacation

ponement,

pared by David E. Faville, Professor of Marketing, Stan-

many

forward without undue post¬

can

ments.

be maintained.

can

Verde, and numerous national parks and monu¬
National Park officials have already estimated
that 1946 will see an unprecedented volume of vacation
travel through the major parks within the area, includ¬
ing among others, Rocky Mountain and Yellowstone Na¬
tional Parks.
It is not "surprising then, that' the region
within which Continental Air Lines operates is looking
forward during 1946 to the greatest volume of vacation
and pleasure travel ever achieved.
Just as efforts of
people within this region are being bent toward arrang¬
ing adequate development to welcome, accommodate,
and entertain these vacation guests, so is Continental Air
Lines, along with other air lines serving the region, striv¬
ing to provide adequate and speedy travel facilities.

Mesa

Pointing to the. current and wartime rise in dietary
standards; Mr. Ware said, everything possible must be
done to insure maximum
employment so these standards

ditional

;

Wh,te

...

In other words,
the dollar to

goods

may

the hazards of style or fashion
come

changes.

Of- radically.improved designs^

Tailroads | at the present time
millions of drillarsi will I probably
operating costs through ytegej increases

is the fact that many

be added to their

The public will

to enjoy superior, ripeness, flavoiyand-vitamin con-

type^,

The chief concern* of the

speedily secured when needed.*

^This naturally enables business men to avoid many of

locomotives of all

•

•V-i <j'1 ■'
i

<>.» ;***•«

'I i

It is unlikely that we shall

Scientific Research and Economic

Development

(Continued from page 533)
search, but this in turn rests, on
basic, or fundamental research.
Many people confuse these, two.
Probably the most characteristic

respectively certain, probable,
possible, unlikely, and just plain
worrying about. One of

difference between basic and

contains about 40

new

desired end such

some

product,
machihe/iAvta^

process, a new

new:4

get about

aimed

„

without

nomic world than research which

tenth of 1% of this

one

It
:

is
be

can

used

that

for

this

many

which

even

their

firewood,

place

forms

but

beside

that they need never
be
re-fueled
again before they
wear out. I strongly
suspect, how¬
ever, that new problems will be

purposes

The

discoveries

made

are

of
in

basic

chunk of uranium. ( The
is in the uranium, all right,
and I am sure that if you insisted
on
owning such an automobile at
once,
Dr. Compton and a few
a

energy

dozen
one

assistants

could

construct

for you. You would feel

pretty
funny driving it, however, perched
up on top of eight feet of concrete
arranged to keep damaging rays
frona/coming : through the seat
cushions,, and with eight foot thick
fenders of concrete

all sides to

protect the passerby from radio¬

to start

the
it

atmosphere,: or jar
orbit, or blow
completely. I realize that
better scientists than I have

worried

about this, but I know
enough about the situation to take
a

chance

danger not indicated by the cal¬

any

that

small modicum

have

been

and wish to reassure any

ing'member

this

made,
quiver¬

audience

Scientists

are not above titillat-

". (Continued

page

597)

advantages of

atomic energy in this
connection,
that the grass; in this new

and

New

tt:

;

I. LEWIS ARMSTRONG & CO.
MEMBERS

re¬

PHILADELPHIA

vi'.:?:/: 11■■

STOCK

"v1"'

EXCHANGE

1;v

./v..
,

;

UNLISTED
t$''itL}."/

departments ;of the universities is
to train: new scientists,1 and this
can best be done by
immersing

Brokers and Dealers in

«-

Railroad, Public Utility and Industrial

'Listed and Unlisted

students in the

practice and prin¬
ciples V of disinterested scientific
investigation.
The " justifications
for; carrying on basic research in
government and industrial labor¬
atories is that in'many cases it is
impossible to attract able scien¬

•

■

....

/•?

V„"fW«
•

SECUR FT I E S

'..-.i

'*.14

o-v

V'V

.#;<•.

V r-

' >.-}* \#

.'•>»

•„

Securities

interested In block offerings ot listed and unlisted

are

securities either for

our

own

account

or,far distribution

through

our

organization.;

they are given some

GIIHAHD TRUST C0MPANY

opportunity to engage in the; pas¬
time of new fact collecting;
'
•4 When we
pass to a more de-

ESTABLISHED

BUILDING

PHILADELPHIA 2

1914

.tailed consideration of how scien¬

Telephone Locust 0860

tific research affects economic de¬

Boenning & Co.

velopment, difficulties sometimes
arise because of the confusion of
scientific terms*; in the mind of
the layman. Only a few weeks ago
a lady called me on the phone and
asked to borrow a diesel engine, r
At the same time it is important

-MEMBERS PHILADELPHIA STOCK EXCHANGE

MEMBERS -NEW' YORK :CtJRB'

-EXCHANGE'';(ASSOCIATE)

1608 Walnut Street

PHILADELPHIA 3, PA.

•

that the scientists should

PBHaypacker 8200

Bell System Teletype

tfew Toyk.TieXepkoae

FH 30

under*

COrtlaadt 7-1202

stand the language of the layman.
The National Bureau of Standards

received

once

plumber

who

letter

wanted

from

I.IMJiV & CO.
MEMBERS; PHIL AD ELPHIA STO CK

c\r.:...

EXCHANGE

i'.vr '.fiv":

:v^.'

know

whether he could clean out

pipes

With

hydrochloric acid. £ 1 \
The most direct effect of scien¬
tific research on
the economic

ii'.d i

t .*

level of

the nation appears to be
in increasing the availability of
energy. All of our energy, whether
found in coal,, water, wood, pe¬
troleum, butter^br what you will;
has come to us from the sun; and
since:

sunlight lavishes

earth/each

:ii

<■..$

■

:.:V" '■?>)<}■■

TRAD ING

■

DEPARTMENT

<y.':/444

...

UNLISTED SECURITIES

CORPORATE

upon the

day : 200,000 times as
much energy as we now use for all

EDMUND J. DAVIS

combined, scientists are
naturally tempted to try to find
some direct way of harnessing' this
purposes

MUNICIPAL

Mlaiiro Office:

RUSSELL W. SCHAFFER

THeyAJiave not yet; suc¬
ceeded beCapseihhe^do mot yet

energy.-

Fackani! Building, Philadelphia 2, Pa.
Branch Office:

have enough facts, and basic re¬
search is needed to cure this.
In

40. Exchange Place., New/ York 5, M V.

scientific

slang, solar energy is
too "soft" to handle efficiently;
though one horsepower falls on
eaclrsquare yard/of/ground;on a
sunny June day, the apparatus re¬
quired to concentrate and store it
is too complex* and cumbersome
to be practical. We need a "hard¬
er" type of energy.
r .V »
w
: 'i 1 can mo Jonger/ignpre/atomie
energy.: My. principal feeling at
this moment is regret that I; can¬
not talk about atomic energy

RAMBO, KEEN, CLOSE & KERNER, INC.
''_t

J"'

1518 Locust

' #

//.'

''C"

Street, Philadelphia 2

Telephones
■%., Phila.—'Pennypacker 2800

Dealers^Mri^rBrokers in

.Teletype
./ PH 63 '■

New York—REctor 2-2820

Public Utility

Railroad

Industrial

•

i securities!#®!

with¬

out

having you think about atomic
bombs. I hope that the gloom
,

which

seems

soon

NTew

to have .settled over

Scientisp and' layman .alike will
be. lifted

that

the

cheerful aspects; of atomic power;
which to my mind far transcend
the gloomy, will be apparent.1. In
any case I must digress for a mo¬
ment, since there is no use talking
about
we
-

economic i development

are

all to be blown: up;

The situation
some

''•"r-rt-j t-fi
''i

4".

VJ"/'

'..Vo*, vJ.v'
i1'
V

■

'**

•

'■ *' \ !

•

*■

t-1-' '

v.-F

ft'-

•

i.V)K.

/•

W-"V5

l*:

-.'V"-"•"'T

■

V'"

' f

y.f.
;f'.

•

,•

"'Y'; •",> V

Electronic

and

v-i-' ?

Securities

Guaranteed and Leased Line Stocks

Equipment
;•

Television

•

Specializing in Railroad Reorganization Issues

Jjersey and General Market Mimm

INVESTMENT SECURITIES
T*

Selected Situations Currently Available

Trust

Obligations

Bank and Insurance

Stocks

would be helped
;>

of the nonsense and1 ca¬

lamity howling could be separated
from the facts about atomic en¬

Five- classes of events have
predicted, and, though all ap¬
pear to be jumbled together in the
public mind, they can be divided
pretty easily into events which are

ergy.;

been

;•> '

..:.

:tx

EULER & CO.
1518 Walnut

Street, Philadelphia 2

KINgsley 236S

Charles A.
rtv

1500 .Walnut

Taggart & Co.

Investment Securities

St^

Dime

the full extent of my ability.

culations

small

tists unless

the

earth from its

many

activity. Fifty tons of concrete /
take away much of the charm from

number of labora¬
tories/most of which are in uni¬
versities. This is as it should be;
for the purpose of "the scientific

pea-

Zpv

chain reaction that will

touch off

tively

from

compara¬

with

Finally, it is just plain foolish
to suppose that someone is going

energy ^rid v new; uses,
yard may later not look quite so
produces wealth without taking and supplement, old forms, but green, though entirely
edible, as
it from others/ and -thus benefits "seldom do,' they: supplant them: it does/how, to certain comment
management and labor/ producer Atomic energy is too "hard," and
PS//////
and consumer: alike,I 7 ■ ; / /, '
U

automobile

encountered which will greatly re¬
duce the apparent

will, take

these/'

see

energy sources
when they are

them

into

launched,

energy

of coal, or

have

will

fttted

which will greatly.raise the living
standard of the world. Uranium
and plutonium will not take the

place of petroleum,

shall

ships powered by atomic energy

probable

be softened up to be of

energy too much.
It is possible that

out, under extremely spe¬
cial conditions, from two natural
chemical elements, uranium and
thorium.
"
.
energy

or a

at determining
knowing or caring
how they are to be used. ;
♦
Basic % researchis ■ sometimes
called
"pure research," but-the
term;"pure" is perhaps unfortu¬
nate because it implies that applied research is impure, and I
; know of nothing purer in the
eco¬
facts

British

thermal units of energy per pound,
and that, scientists know how to

ap¬

million

industrially, and. this in¬
volves
new
complications.
The
great uranium piles we read about
soften
energy : while
producing
plutonium, but at present they
rather overdo this, softening the

the certain facts is that all matter

plied research is that the latter
involves investigation, directed to¬
ward

needs

from

sized engine.

going down the: street,
powered by tiny engines running

value

not worth

see

automobiles

;Phiiadelpiiia4^--T-j^^

Building/Allentowii, Pa.

-r

Speaks After the Turn of the Year

Business and Finance

installation

Tire and Rubber Company

time

of automotive tires is probably as criti¬
cal (or more so) today than at any time during the war
or since 1941,
•
V
s xll
A great many motorists and tire
dealers were of the opinion?-that,
The shortage

rationing

all their tire

pase
and

the

troubles would be over.

lit

(we do not anticipate there will be) the
in monthly production should, in

;

continued in¬
the next six

requirements.

of the opportunity of hav¬
ing good tires, that have no breaks in them, recapped.
The material used for recapping passenger tires particu¬
larly is ever so much better, than it has been in" the
jobs, should avail themselves

Good carcasses, recapped, will often deliver as
of new tires; they will av¬

much mileage as many makes

of old
tubes. Every motorist with a tire that apparently has
10,000 or 12,000 miles of service (and it usually can be
Many tires are being put out of service because

that

ascertained whether or not

so) should make it

his business to know that it has a good tube.

Last,

do not discount tires made of

but not least,

synthetic rubber. We do not believe any manufacturer
is making an honest

who

thetic tire

ever

the synthetic
inner

made

effort to make

good

syn¬

better natural rubber tire than

he is making today.

This also applies to

tubes; there never was a better tube of natural

rubber* than

that" which is being made today out of

synthetic rubber. 4

C. E. WICKMAN
President, The Greyhound Corporation
It seems apparent

that intercity passenger traffic will

eventually fall below the unprecedented volume han¬
dled during the war years. However, there are many
factors to

support the belief that the traffic demands

intercity motorbus during

the

materially.

Demobilization of

tremendous

armed

forces will not fee completed much before the end of the
year,

and there will be continual replacements of

pyerseas
ers

personnel to be handled. Millions of

and their families who have migrated to

travel

i^trictj^ And
m a

jlV.-:

President, Freeport Sulphur Company
No shortage of

sulphur, a basic.need of American in- v >
dustry, will hold back ,the flow; of goods te the public ■

David E. Williams

in 1946.

In spite of the
dr^in; ofr four war ye^rs during which;
shipping and production were maintained up to record-,
breaking levels, the American sulphur industry today, .
stands ready with stocks and tecihties sufficient to supplyi l
all anticipated dem4nds.
"
• •
> Shipments from Gulf Coast mines
during the year were!;
estimated at 3,800,00p long tons, as against 3,500,000 longr
tons last year, a new all-time peak.
Production also:
climbed to new highs.
By August, the month of the
war's end, more natiye sulphur was being produced than: ^
in any previous monffc^in the history pf;sthe^ndustr^ andos
production for the eptire year was approximately 3,750,*; .
000 long tons, as compared to about 3,200,000 for the year1944.
Stocks on hand at minesv.ready for the needs of; (
reconverted American industry, today amount to around
3,500,000 long tons.

our

„

Consumption of American sulphur in 1946 may well
high levels, with markets bo.th at home And

continue at

letdown.

By far the largest proportion of sulphur shipments are sulphuric acid industry. At the close of

1945 the sulphuric acid ^production

small

War-born expansion of such industries as the rayon,
petroleum, steel and fertilizer manufacture, all sulphuric
acid consumers, also is not expected to drop to prewar
levels; first, because of the great bank of civilian orders
and second, because of new developments in these fields
Which increase their use. of acid. Other industries, pre--,
vented from full growth during the war, are also expect-;
ed to need additional sulphuric acid to fill long-delayed

For small and medium-sized businesses, Corn Ex¬
change, together with a group of other Philadelphia
banks, has set up a $10,000,000 bank credit fund to
provide an additional source of revenue during the re¬
conversion period. This is a practical, effective bank
service that will continue to bear fruit in the Phila¬
delphia area for years to come.
Corn Exchange and other Philadelphia banks are pre¬
paredfor this period of readj ustment with complete
banking services and with special credit facilities for
consumers, veterans and businessmen.

projects.
Significant to the postwar outlook of the sulphur in¬
dustry is the anticipated demand for sulphuric acid from
superphosphate fertilizer manufacturers. Maximum crop
production will be needed to supply food for this coun¬
try, for our men in seryice abroad and for starving Euro¬
pean peoples who must be dependent upon us. About
6,800,000 tons of superphosphates were produced in*
1,945, and Department of Agriculture figures show an
increase in general (fa^ta use of fertilizer ranging from

E. G. WILLIAMS
President, American Type Founders Sales Corporation

manufactures

100 to 367% over prewar years.

has•: been

progressing with accelerated speed at our
plants in Elizabeth, New Jersey, And Mb Vernon, New.

work¬

are

still faced with

short supplies of some items,

kaye

holders of ATF Civilian Priority
Delivery Certificates in the order of
their preference. Present production
schedules call for delivery of other,
models of both our letterpress and
sheet fed offset lines by early Spring,
and we expect to,step
up deliveries
gradually until peak production js

Wage levels are higher in relation to cost
of travel than ever before. Vacations with pay have be¬
jpurneys.

come

almost universal.

Permanent military and naval

establishments will almost certainly be much larger than
before the
«

war.

Extensive plans have been developed for an intensive

only include points of interest

E. G. Williams

Preparations have been made for internal solicitation in

4. &

r,„,

handle,? such
equipment,

drills,

cameras

and

proof

composing

{

presses,

Sulphur will continue to be in demand for
ization of rubber,

room

cutters,

platemaking equipment, and most

Experiments in the use of sulphuric acid in the production of high octane gasoline, diverted to large degree
to aviation during the war, show that this process may
now be extended to improve automobile and other mo¬
tor fuels.-Intensification of power applications has also
Stimulated the development of sulphurized oil lubricants,'
in the production of which powdered sulphur and sul¬
phuric acid are used.
u

£
Deliveries by our suppliers have already started on many lines that we

within the United

States, but also vacation spots in Alaska and Mexico.

foreign markets.

theAtage of commercial production.

reached in the Fall of 1946.

promotion of all-expense highway tours. These trips will
not

Jtefertilization and conditioning of European farms to
supply even a portion pf the minimum food needs will!
also require large shipments ,of fertilizer.
" ;
Allied to the fertilizer industry in catering to the food,

notably
gray
iron castings
and
electrical
equipment, we are hopefuLthat these i needs of the world 4s the manufacture of fungicides and
will continue .to improye as we ap¬
insecticides, for which sulphur is a base. , Sulphur,' fore¬
proach peak production,;.^.;; ,
most among the fungicides, has also been discovered to;
By Jan. 1, 1946; we hope to , begin; ? combine successfully with DDT, the new and yery effec-!
deliveries of the first C-Kellys and V tive insecticide.: Sprays and dusts,-combining the quali-!
our Big Chief sheet fed offset presses
ties of both-sulphur and DPT^ are. reported already near-

tremendous backlog of postponed

responding drop in sulphuric acid consumption with4he 4
closing of explosive plants. Ingenious salvage and reuse.; ^
of the acid, employed first in explosive plants, has helped 4
to hold expansion of sulphuric acid capacity to within.
limits which the.industry should he able to utilize Jn
peacetime production. Fresh acid will now be supplied
direct to peacetime industries instead of being routed
first through explosive plants.

success.

While

coun-hB

Although the major portion of this increase went into
the manufacture of explosives, this does not mean a cor-

surrounding circumstances indicate a good * chance of

York.

capacity of this

try was 10,500,000 short tons> 10Q%, acid, an increase of ,,
than a million tons over 1944 and of more than two
;
million tons during the war.
4

non-existent. Credit is supplied for ventures if the

Since VJ-Day reconversion to peacetime

made to the

tures where the chances of success would be <very

sulphur consumers, indicates*that there will be ho largedecrease in demand, assuming no; general industrtel*'

commercial banks of Philadelphia are keenly

the special credit problems of returning
veterans and of small business. Corn Exchange and 35
other Philadelphia banks have established a $10,000,000
operating fund for the exclusive benefit of war veterans.
This fund is operated by the Philadelphia Agency for
Business Loans to Servicemen Inc., set up by the co¬
operating banks. Veterans receive expert business ad¬
vice so that they will not be enticed into business ven¬

abroad. An examination of domestic industries which are

sensitive

standpoint of facilities,
r
.
:
~
I believe that our experience at Corn Exchange in the
past year indicates a healthy condition not just of the
bank, but pf fhe community. Our deposits other than
Government deposits were increased by nearly $25,009,-4
00.0 or about 12%. There was a sharp rise in demand and
time collateral loans and in bills discounted, the in¬
crease aggregating more than $19,000,000 or about 55%.
A recent estimate for the Philadelphia Federal Reserve
District indicated a 10% increase in deposits in that dis¬
trict between July, 1945 and the end of 1947.

centers

mc^

keep An;

Metropolitan area.
In this readjustment period Philadelphia is in an ad¬
vantageous position. Performing a major part in pro¬
duction for war, Philadelphia industries were so diversi¬
fied that many of its normal products were essential for
our armed forces. The changeover to peacetime produc¬
tion therefore is relatively simple, at least from the

I#rge segments of the population who never before have

Wartime

'iTJV.'vV

A '

manufac^, i

enterprise system. We believe that banking has a vital
role in channeling funds into productive enterprises and
that one of the major responsibilities of our Bank is aid¬
ing in the creation of goods and services frrtbe benefit:
of consumers. $
%
'
' 1
,
»
Intelligent advice and cooperation must be based on
specialized knowledge. Here at Corn Exchange we have
had years of experience with many of the diversified
industries and branches of commerce in the Philadelphia

made intercommunity journeys are now travel-conscious.
certainly resulted

Speakiqg for Corn Exchange, our position is clear.. We

to return to their former domiciles.

be expected

can

war

commitments.In.wpife>^

1946 will not fall off
our

complicate
Doubt of the

forces

pattern.

made ? available? to •printers, everywhere .through trade" ;
associations. andv employers'- groups wite gratifyingc re-•. (•

Inflationary

The

erage better than 70%.
/

deflationary
business

In the meantime, those passenger car owners and,
yes, some of the truck owners, particularly the smaller

past.

suggestions for printers on how to make the best and.
most profitable use of their equipment, and how to
prepare to .meet'the

recognize and act on the principle that our Bank and ;
other commercial banks are an integral part of the free

taking up the shortage. We
have reference to passenger tires. In respect to heavy
pneumatic tires for truck work, our situation is very
much better than it has. been at any time since the war
and the next 60 days shoul^ see enough heavy truck
country to take care of

the employment situation ,V
Readjustment from war to peace re- ?
quires the ultimate placement of ap-t
proximately 11,000,000 civilians and
about 9,000,000 discharged veterans, v
eye

months, come very close to

tires built in 4he.

turers and distributors must

crease

•

or even com-

problems.

many

with many

immediately arrived at the conclu¬
sion that the old tires were no good
for further mileage and that they
would have to get new tires. The
tire dealer, in turn, when he did
not have to send in rationing cer¬
tificates with his order, ordered as
though tires were 'growing on trees.
The
discontinuance of rationing
did not help the manufacturers build
any more tires; hence the shortage
today is apparently greater than at
any time previous,

is usually darkest just before the dawn and, if there
interruption in tire production through tire strikes

•*.;

us.

ing out marketing plans,

fact,; many - people who tjLinder ; ra¬
tioning had planned to get along
for some time with their ,old tires,

stability of price ranges interferes^

They have i since learned that such,
was not
the case.- As a matter of

J. W. Whitehead

with

plete stoppages in the face of tre-v;
mendous demands for durable goods

discontinued,

was

now

|- Production slow-ups

when

WHITEHEAD

J. W

■

*
The commercial banks of Philadelphia never were - in
a better position to assist and guide business
and in¬
to time.
:
i
•
dustry through a period of readjustment than they are
; Every Attention is also being given to the
today.
vv.'v4
■
444;
development. %
of new products .and new processes in the graphic arts 4*
Jt is a fortimate. situation because;while pur nation has seen many eras f
field by a staff of specially trained research engineers::-^
of readjustment, none has been so v
Theiresultetef fhis^re^earchs^vill be':made-availabie46^?;the printing industry, as fast as practicable, v
challenging, none so perplexing or
•
;i : v V :
more difficult to Appraise than 4he.:
44 During the war ATF 'deyeloped a number of helpful ^

rendered during the war.

President, The Norwalk

ably sometime late in the year..;
ATF will introduce some new products during the year!
of practical value to :printers.
Announcements of the
specific nature nf4hesc-products wilL be made from time

break, will successfully meet this competition and con¬
tinue io render the same necessary and efficient service
as was

.1946 until the present: backlog of orders -is filled, prob-»

President, Corn Exchange National Bank and Trust
Company, Philadelphia

if given an_ even

equipment,

modern

supplies.. These, too? yvillvbe? "stepped up"- throughout

DAVID E. WILLIAMS

(Continued from page 592)
as to freight and passenger rates
and rate-making policies.
Trucks, buses and airlines
will compete aggressively for traffic, r However, the rail¬
roads through increased operating efficiency and .the
the uncertainty

and

Thursday, January 31, 1946}

FINANCIAL CHRONICLE

THE ^COMMERCIAL &

594

1945, production
*

the vulcan|

whether natural or synthetic. During

of synthetic rubber, in which sulphuric

(Continued

page

596)

JSS9

Volume

..Number

163

4460

THF. COMMRRCTAL & FINANCIAL CHRONICLE

595

•

.' (ill »•

in plants in' California and
plant in Wisconsin. ; / •
< \

KayserCommon Issue
Offered al 25V4 Per Sh.
Underwriters headed by Carl M.

Loeb, Rhoades & Co. and. Smith,
Barney & Co. onr Jan. 29 offered
after

the

153,400 shares

the

market

($5 par)

Giving effect to the present fin¬
ancing the company will have

In California, where it is the
largest dairy', products dealer in

outstanding bank indebtedness to¬

talling

the state, the company is engaged
also in house-to-house distribu¬
tion

milk,; cream,

butter,

cheese and eggs.

cream,

$4,500,000;

of 4% cumulative

50,000

preferred stock,

($100 par),

ice

common

stock,

common

stock of Julius Kayser & Co., ho¬
siery and underclothing manufac¬
turer, for account of stockholders.
The stock was offered at $25.25
,

her Share. Among the underwrit¬
ers participating are Kuhn, Loeb
& Co.; Blyth & Co., Inc.; Goldman,
Sachs & Co.; Harriman Ripley &
Co., Inc.; Kidder, Peabody & Co.,
Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane; Conu &
Torrey; Eastman, Dillon & Co.;
Hallgarten & Co.; Johnston, Lemon
& Co.;, Laird, Bissell
Meeds;
Lee Higginsorv Corporation;

Jaffray

Hopwood,

& Co.

Members
New York Stock Exchange

Piper,

Chicago Stock Exchange
Chicago Board of Trade

New York Cotton Exchange

r-}

Sutro

and

;

New York Curb Exchange

Commodity Exchange, Inc.

4' 'J''V4v'"v, 'sV/V-KV-V': yVvi^V^.':-'TV1 -'S'

National Association of Securities Dealers, Inc.

I
i

Investment Bankers Association of America

Biylh & Co., Inc. Offers
Golden State Go. Pfd.

CHICAGO

i, ILL.

NEW YORK 5,N.y,

135 SO. LA SALLE STREET

Telephone DIgby 4-2500

Teletype CO 1279

underwriters headed
by Blyth & Co.,Inc., today (Thurs¬

ONE WAU STREET

Telephone State 0933

A group of

Teletype NY 1-633

day)' is offering to the public a
issuu of 50,000 shares of Gold¬
en State Co., Ltd;, 4% cumulative
preferred stock,
($100 par)
at
$103.50 per share and accrued div¬
idends.
The stock is:convertible

AXXAUXN««>COMEANY
Incorporated

new

into shares of

common

fore December

31", 1955.

•

Proceeds

be¬

this financing,

to¬

Chicago

New York

Minneapolis

gether with approximately $2,300,.the « company's
general
funds, will be used over the next

Boston

Milwaukee

Kansas City

Omaha

000 fof

•

H',.

../£

two years for the enlargement and

improvementv of

existing plants;

for the construction of

72(1

plant for

ANNIVERSARY

the dehydration of milk and milk

products at Marshfield, Wis., and
for the acquisition arid
of hew1 equipment.

After seventy rone years of continuous service in the

installation

handling of securities and commodities,

Golden State Co;^ Ltd;;
decessorshave been engaged srnce
1905 in the manufacture and

express our

business associations which have enabled

dairy products.
In
carrying on the usual

operations of

maintain

and

of diversified
addition to

STRAUS & BLOSSER

wish to

:v'

appreciation of the patronage and pleasant

our

r'ix

It.

''i^

/V«

<t'JL

\'v

^ \
>

a*,

develop

organization.
MEMBERS
5-

distributor of fluic

P
-

milk? and: creaihi, the. 'company
manufactures and distributes pow¬
dered milk and powdered milk
products, including ice creain mix,
ice cream, butter, evaporated milk
and cheese,; The company's man¬
ufacturing operations are earned

LAMSON BROS. & CO.

;

Members

the

«•

^'?

11i

3JEW VORK STOCK EXCHANGE

•

CHICAGO STOCK HXCHANGE

w
"

■"

NEW VORK CPTiB EXCHANGE
(ASSOCIATE^
^

1 s

of and furnishing private wire service to

principal security

and

commodity

exchanges,

Home Offices 141 W. IJackson Blvd., ~ Chicago 4,

111.135 SOUTH LA'SALLE STREET

CHICAGO 3, ILLINOIS

Underwriters and Distributors

Listed and Unlisted Stocks and Bonds

—

Telephone ANDOVER 5700

Municipal Bonds
Direct Private Wires Coast to Coast

National Underwriters

—

Fidelity Fund, Inc.
DETROIT

KANSAS

CITY

MILWAUKEE

INDIANAPOLIS

Paal H.Davis & Go.
"

Established

1916

principalStockExchanges

10 South La Salle

Street, Chicago

CG 405

INDIANAPOLIS

;

1;}3S

CLEVELAND

^fr-!

ROCKFORD

Brailsford & Co
Members Chicago Stock Exchange

Underwriters and Distributors

Of Investment Securities

208 South La Saller Street,

Chicago 4

THE COMMERCIAL & FINANCIAL CHRONICLE

596

{Thursday, January 31, 1946

After the Turn of the Year
*-';v;'• ^\v-•

Business and rinance Speaks

;,-.;vWvN'V/" FV':~vv^
months to

(Continued from page 594)
acid is used for several stages, was estimated at

1,000,000 tons, and a projected

about

total of 1,200,000 tons has

been set for 1946.

the paper industry is esti¬
about 354,000 tons annually, about 10%
sulphur production. Expected expansion of the
industry, held in check by war requirements, may send
this amount up during 1946.
Consumption of sulphur in

mated to average
of total

Ulll(

to have in the next few years as

continues to be an
of a new OWOinafof sulfa
group
4
OtmiTtS'

in which sulphur

exff

drugs, sulfamyl-dibromoanilids, effective
of bacteria resistant to other sulfa drugs.

such

against strains

HOWARD L. WYNEGAR
•

President, Erie Railroad Company
The railroads

themselves do not produce, their job

The

t
>

the goods produced by farms and industries.
It is therefore very difficult to forecast with eyen rea•
\
' sonable accuracy a railroad's busi¬

be * on

the

for

coming'

amount of revenue the

re¬

will rise and fall with the
amount
of
industrial
production.
show

that

the

amount of

spent for transportation in
is a nearly constant per¬
cent of our national income. If busi¬

money

this country

ness

Erie

whole

other

and

000.

is prosperous, the
railroads will be

one

end of its

sudden ending of the war
'

with Japan in August.

handling

outstanding debt and fixed charges. .The Erie's
position was greatly improved during this
; period, and its fixed charges are mow below $5,000,000
annually as compared with $14,000,000 prior to 1941. Be¬
cause of these huge debt reductions there is a general
to reduce

financial

timpression that the railroads will be in excellent finan¬
•

certain

not taken into consideration, namely,
that since 1939 railroad wages have been increased on
are

two occasions, by a

total of 29%, and material costs .have
increased approximately 24 %.
On the other hand, the
cost to the shipper, as expressed in the average revenue

•

2Y2% since 1939 and is

per ton mile, decreased
lower than in 1921.
•

The

y creases

railroads

absorb

same average
the heavy volume of traffic
utilization of equipment, heavier

prompt loading and unloading. For
f in their one hundred years of operation
more

24%

cars

realize

that

uted to

long distances in full capacity trains.

and the

little extent to

sustaining

rank cif ..Commander. Mr. .Dribben.
is the possessor of 6 battle1 stars,
the bronze star, a fleet commen¬

Geruldsen M«n.

Appointed Asst. V.-P^

dation and Pacific and American

For Daniel F. Rice

Of Chemical Bank

assignment was a survey .of stra¬
tegic bomb damage in: Japan. He

Seymour Dribben Is
i

]

Chairman

Frank K. Houston,

of the
■

Board of Directors of the

Chemical

|165

Bank
the

•

after

Com.,

York City,

appointment ?; of

Seymour
Dribben
Vice-President.
from

Trust

New

Broadway,

announces

Mr.

area

University

for

.Bank

most

CHICAGO, ILL.—Nils S, Geruldsen, who has been in the
.

municipal bond business here for
the past 25 years, has become as¬

March 3 st.

He .will again be associated with

sociated with Daniel F. Rice and

the

Metropolitan Division ; han¬
dling the Bank's business in New
York City.

two

five years

achieving

the

'As

pairing
•

war

Street, New York City, in its sales

past eight years hp has been as¬
sociated with Paul H. Davis & Co.,

department, serving savings banks
the

Metropolitan

New

and prior to that with

York
;

gan

& Co.

Glore,»For.

•

buildings, will be in

the

buildings,

progress dur¬

This demand plus the normal

automotive,

steel,

brass,

electrical,

rubber industries will far exceed the pre¬

It is. believed that this demand will

all of the present productive capacity and grad¬

ation of those industries fabricating

LOS

zinc into the fin-

To Dean Witter & Qo.

ernors

ANGELES, CALIF.—Gov¬
of the Los Angeles

Exchange elected
of Akin Lambert

Bateman,

Stock

C. Lamtiert
Co., First Vice-

their

Eichler

For the

of the farmer,

' ished product.

New York in 1929, coming to Chi¬
cago

power

Consumption will depend entirely on the rate of oper¬

Equitable Securities Corp., 2 Wall

purchasing

ually reduce the stocks that have been accumulated,

released from active service in the

for tiiem, in 1927,

from

consumption.

consume

P. J.

Cavalry, will represent the

additions to

paint, and

Henry

York

backlog demand

heavy purchases of material for re¬

ing the last half of 1946.

meeting.

New

major part
during the

buildings and equipment, and new
as

demands

named Second

well

manager-

war purposes

built up a large

With the present high
it is expected that

business with Eldredge & Co, in

of zinc for

there has been

war,

President

the

result of the system of allocating the

for civilian consumption.

their municipal bond department.
Mr.
Geruldsen started in this

Lt. Robert A. McCurdy, recently

of the production

ing, members of
Stock Exchange,

years.; He

The consumption of zinc during the first quarter of
the year will, no doubt, be curtailed as a result of the
distiilbahces in these taree industries.

Company, Board of Trade Build¬
as

The outlook in the zinc industry for the consumption
during 1946 would be most encouraging indeed if it were
not for the present strike threat in the three major in-*
dustries, where the major portion of zinc is consumed,
namely: steel, automobile, and electrical equipment and
appliances.

Elects Officers

recent

was

joined the staff of the Chemical
Baiflk & Trust Co., in 1934 and
became an Assistant Secretary in
1940. He has been on leave of
absence with the U. S. Navy for
nearly

returns to the

His

Assistant

graduated
Princeton University in 1931
which he attended Oxford
Dribben

citations.

iil

I. YOUNG

President, American Zink, Lead and Smelting Company

Angeles Exchange Fitzgerald Returns

Los

Mgr.

HOWARD

production

mass

high standard of living enjoyed by this country.

me world,

part-of the American banking system and have'contrib¬

While passenger travel will continue heavy for some

national better¬
leanings, have

our

fh^himv"^
J*«£«ility to maintain our war-time leadership

credit rates will

consumer

impartially, for

ment. We, all of us, regardless*of political

Among the diversified financing activities Of Commer*
cial Credit Company factoring, open accounts financing
large inand other branches of our business have functioned nor¬
freight rates
mally throughout the war years and we have every
handled, the
reason to believe will show a definite volume improve¬
loading and
ment in the. period ahead. The facilities offered by our
the first time
the railroads | company and like companies have become an integral

{have been:able to do the job they are best fitted for,
| namely, mass transportation, which means hauling fully
> loaded

treatment instituted

these

and still retain the

because
better

able

were

now

.Let's have art immediate governmental analysis of the
cause, and the cure.
And let us have the

illness; the

of this practice.

be
lower than in the, prewar years to the advantage of
American families who depend on credit to acquire auto¬
mobiles and labor-saving appliances. We know that the,
commercial financing company will need a larger1 vol-'
ume of business to make the same gross and net dollar
realized before the war. In this respect our position is
not different from that of banks and business in gen¬
eral. A broadening of business volume \o meet lower
price rates is the normal and "healthy" Irend of Amer¬
ican business.
We are taking step${to achieve this in¬
creased volume in the current year. Since the close of
the war we; in common with other finance companies,
show a marked expansion in the company's facilities.
At the present time we have 236 consumer credit offices
throughout the United States and Canada organized
completely to handle installment financing. This expan¬
sion is continuing for our company and we anticipate
when completed we will have between 350 and 400
offices in this country and. in Canada.
' •

business during the war, they wisely used their earnings

cial condition in the future—come what may.
In arriving at such a conclusion, however,

survey

now to both fac¬
industrial ills, than it is to let -either

our

patient off easy only to see him pass away.

buying out of earnings. From
we' have made I foresee the universal continu¬

We well

heavy volume of

tions to cure

There is a widespread desire to
acquired savings, to use such savings for
home building and for income producing investments
and for other purposes.
In the consciousness of the
;
American. Consumer,
consumer,£ installment} buying—a custom
installment > buying-—°
Which has jproven over the years its ability to raise the
average family's standard of living—is her^ to stay.

but will show a decrease for the full year.
were

opinion and

not.

It is better to administer medicine

retain newly

gasoline rationing resulted in some decrease
travel, although the movement of
troops continued to mount, and as a result, passenger
revenue is running about 8%' higher than this -time: last
While the railroads

Howard L. Wynegar

planning to the practice of

The end of

basic factors

More positive action in Washington* without regard for
political toe-stepping, is direly needed,- When a person
is sick, as our nation is today, industrialwise, a definite
cure is called for whether the patient likes the treatment

purchasing practices. In the prewar period the average
American family had adjusted its budget and financial

in civilian passenger

year,

ing and bleak.

ance

jeopardized

completely stopped.

Immediate deconversion must be achieved, so that the
of peace-time production, and income, and pur¬
chasing power, may continue smoothly. If this is not
done, the future of industrial America appears devastat¬

materially—I make this assertion on the basis of a survey of consumer

with freight business approx-s
imately 20 % - less than that handled at the- end of 1944.
"When the war with Germany ended in May, there was
a slight decrease in the amount of freight business of¬
fered *ahd it continued at about the same level until the

hopelessly, stalled,

Not

The Erie ended the,year

recon-

flow

personal savings and war bonds af¬

f,.

quickly,

of American? citizens whose incomes will be

■

financing.
Will the war-created increase in

satisfactory level.

' com-

causing chaos not only in manage¬
ment, but'in labor as jwell; and .in the homes of millions

mand for consumer credit

agricultural west. In between are
Lima, Mansfield, Cleveland, Warren, Youngstown, Ak¬
ron, Jamestown, Buffalo, Elmira and Binghamton, each
;an important production center.
If the plants in these
industrial communities are busy, the Erie's revenue for

version, will

Herbert J. Yates

•

Unless this is done

fect ' consdmer^ creditf ^purchasing?

great

legis¬

two-way

•pelUng'arbitratiori.'

industrial

another

immediate

lation,, outlawing strikes and

cityK as well as the gateway to the

•_•••-•; .-•*
'R°?ert E- woodruff

obviously lies in Wash¬

administration, which should

institute

financing. As these
automobiles, radios, household appli¬
ances, etc., flow in increasing num¬
ber to the public there will be a
corresponding upswing in the de- yy

is New York City—a center of

Chicago,
»_,,v

; present

installment

great industrial activity and the out¬
let to Europe.
At the other end is

1946 will reach

the

answer

ington, and directly in the lap of the

•

consumer durable goods
listed above lend themselves readily

particularly to the
Erie, running as it does through the
most highly
industrialized area of
the United States;

•

;

All

prosperous.
This applies

y line

'Vl

The

anticipated volume of .
durable goods:
Motor
cars,
4,000,000;
refriger¬
ators,
3,500,000-4.000,000;
electric
and gas ranges,
3,250,000; washing
machines, 2,500,000; dish washers,
600,000;
home
freezers,^ 1,000,000;
radios, 16,000,000; oil burners, 420,-

ceive

Statistics

1 -

of the year's

The

year.

railroads

pect us to proceed as we are now,
with management limited to certain'

restrictions, while labor is compara¬
tively free to do as it pleases.

is currently, coming into {

outlook

On the assumption that major, labor, troubles will
their way to a solution within the hext 30 to 45

days, I offer the following projection

ness

business

focus.

to carry

1946

■

(handling of nation-wide strikes af¬
fords an intolerable situation for.
management and labor
alike.
A
jStfong policyr ;armed- with • teeth;
■must be adopted immediately, with
absolute disregard for political as-!;
pects; It is eminently unfair to ex¬

■

President, Commercial Credit Company

A weak governmental policv in the

rates when the'

arrives.-

WOODRUFF

R. E.

Washington to preclude the rash of strikes which is now
:
'
,v- 'overwhelming -our entire nation. r V;{

•

compared with the war

for increased freight

request

proper time

or not 1946 will be a goocj! year is a question:
to be answered only by what steps are to be taken in

it may be necessary to request an increase ih the
selling, price pf railroad service, In view of the circumstances I feel sure that American industry and the Interstate Commerce Commission will look with favor upon

^%nc^^e Tep^°^iSw technological and indusoutstanding aid, is the discovery

Whether

years

trial developments,

in order that they may continue to 1

provide the efficient and progressive transportation serv¬
ice which the nation requires.
■
; f
" - *- x '
' J
With the decreased volume of traffic that we are likely

HERBERT J. YATES

President, Republic Productions, Inc.
•

which is necessary

•

the current drop in the volume of
freight being offered plus the greatly increased expenses
will make it difficult for the railroads to earn a profit !*. *
come,

organization

M.
&

service, -has

Dean Witter &
ery

was

Treasurer. W,

Archie Gilbert and

Vermillion Assistant Sec¬
\

military

turned to his former

BatemanV

reappointed Executive

Secretary, and

retaries.

years

re¬

position wit!

Co., 45 Montgom¬

Street, members of the Nev

Vice-President; and York Stock Exchange,

Co., was chosen

Nancy

FRANCISCO, Calif

—Philip. J. Fitzgerald,: after^ fou:

Co.,

Shropshire, Mitchum? Tuliy

G. Paul was

fiSAN.

as partne:

charge of. analytical'and statis;

tical research.

Fitzgerald,
was

During the

special advisor

Chemical

war Mr

lieutenant-colonel
to the Chief

Warfare- for

Control;v-;---{■'

Materie

.Volume 163 S Number 4460"

THE COMMERCIAL & FINANCIAL CHRONICLE

richer than they were by several

Scientific Research aitd Economic Development
;

(Continued from page 593)
ing themselves and their hearers
by prophecies of doom.
Let me

averaging

quote from the New York "Times:"

around

several hundred people and then
fessor

the'results. The

asked

the

each

examination

table

fold;, it

fact

v:""Whenever a discovery of an ex- •give his estimate of the distance
^
traordinary character is made, it to the Moon. He then averaged
is seized upon by a multitude of these
estimates, which
ranged
writers, who, knowing nothing of from 1,000 miles to several million
the scientific principles involved,
miles, and came out with the re¬
<

but being actuated by sensational

sult-that

f; tendencies, make claims for it that
not only excel the actual accom¬
plishments but
in
many
cases

the

moon

in the world has there been

never

such

2,200,000

thing as over-production
useful item; only poor stor¬
and distribution. Nine tenths
of the population of the world has
always lived at a low economic
a

miles away. Thus he arrived at a

of any
age

ties." That is from the "Times" of

precise % result which \ was
wrong by about 2,000,000 miles.
One telescope is often better than
a hundred
questionnaires, and the

March 15, 1896. Here is what peo¬

scientist

ple

much

transcend

the

limits

very

possibili¬

worrying about then. "It
is suggested that if all that has
were

reached
will

home,

armed with

as anyone

of the

new

through

;

X-ray outfits
brick wall."

can

his

important

television

helicopters

and

see

bombs.

economics

because

tomed

generalizations

back

fall

ple rich. Will

known it

there if the astron¬

was

hadn't said it

omers

later

was.

tails of the machine to

A few

the Endless Frontier. I

see

has, the

entific

whole

weight of sci¬

experience

behind

limit

can

the

wealth

see

society

be brought by progres¬
in the control and

Egyptian Pharoah, and
have to house

raise

can

don't

feed them.

this

Re¬

number

;

800; or 8,000 if you will. The

;

nomic level of the meanest Hindu
outcast

can

raised

far

eco-

above

While recognizing that a problem
in economics is-much more com-

many

in physics, having
more variables and much

lionaire, and I don't mean by tax*?
ing the millionaire* either.
Lapsing into conservatism,
I
would say that our real wealth

politicians to a more real¬
istic appraisal of the situation,
The gloom arises because the wea¬
pon is one which gives advantage
to the aggressor rather than the
defense, and hence results in an

more*

confused

level is at

unstable

comes

and

equilibrium

evil

which

intent

any

without notice. I would point out,
the

caliber

condi¬

conclusions which

ternational

however, that this is true also of

tradict fundamental

upset

can

boundary

least ten times too low,
tions, the scientist nevertheless is i on the average over, the earth,
likely to feel that the, economist! Some economists have pointed out
for perhaps it is the political that we are now enabled to bal-:
economist) often gets himself so ance our national economic budget
tangled up in details, that he ordinarily only by the 10% mar¬

our

person

,one

trade,

con-

laws. In
for

in-

Society
has learned fairly effective ways

face

the

about

tariffs

our

foreign trade.

all

and

ex-

process

whole

group

of making stable a
of; equilibria which

grpw,

".it

Where are they com¬
Theoretically from the
universities, but they just aren't

ing from?
there.

The

situation

Dr.

Standard

is ' different

fei i

the world

Oil

Petrovsk

Russia

has

war

years,

the

immediate post¬
the Russians awarded

thousand

doctors'

'hastened,, though
personally that
tened

during

our

may

must

Statistics collected tby Harvard's
President
Conant
indicate
that
half of

our

able young

people who

could profit by a college educa¬
tion do not get one, primarily for
economic reasons.
Surely there is
■economic

reason
enough to justify
educating these "mute inglorious"
Langmuirs
and
Comptons
and

Millikans.

Scholarships

on a

measure

the

PHILADELPHIA,
E.

Garrett

PA.

—

Law¬

and Edward

Monaghan are'forming Garrett*
Monaghan & Co. with offices in
the Architect's Building to act as
dealers in general market securi¬
ties. Joseph J. Cummings, recently
discharged from the U. S. Naval
Reserve, will be associated with
the firm as manager of the trading
department.
>
"

Dick & Merle-Smith Admit
BOSTON,

MASS.—Evans

Rog¬

Dick who has been represent¬

ers

ing Dick ■ &

Merle-Smith,

mem¬

bers of the New York Stock

for

change,

Ex¬

number of years,
will; be admitted td partnership;
in the firm on Feb. 7th. He has
a

30 State Street.

With

the

Boston

office

CARTER H. CORBREY & CO.
WHOLESALE DISTRIBUTORS
For

UNDERWRITERS

DISTRIBUTI^^

77—

COMPLETE TRADING FACILITIES

135 "South La Salle Street Chicago 3* *RL
6502

Teletype CG 99

■
r

BRANCH OFFICE
....

Maintaining Primary Trading Markets In

:■

■

....

■■'"C-

....

650 South Spring

MARKETS

' '•

■

•'

TV''.'

' '

.f■ 4}

' V

V' »

Street Los Angeles 14, CaL

ON ALL WESTERN SECURITIES

Issues Active In Over-The-Counter Markets In
A. E. NICHOLS.

'New York and

Chicago

scientists to¬

started by
accomplishments of the "longhairs" in developing radar, prox¬
imity fuses, and other devices
which helped win the war, and
was helped along by the success
of the atomic bomb, which served
as an ace in the hole which was
was

Manager

Telephone Michigan 41?l

Teletype 3LA 255

We Invite Your Inquiry

the

"
'

.a.-?

3nnrg"8T(T5 5 6' 6T0Tff W
Direct Private Wire to Neiv York

fortunately

not £ needed. < This
change in attitude was symbolized
by an occurence which I observed
a few
months ago in a Pullman

Telephone WABash 868*3

Bell Teletype CG 640 & 641

COM STOCK & co.
231 So. La Salle Street

small Vermont railway.
{Case of ' the impecunious
clergyman and; the sterling por- J
canon a

ter).

'•

does

longer

the

handouts

;

'V-'• vn'

;•

f-'p7/. Ir:UH.pi''

c>
o

Trading Markets

pursue-his calling; ]
now
he has become the sterling '
porter," apportioning i his services
to Caesar and to God; or if you
will; to applied and to basic research! i.
#

of
o

scientist

the part of the impecunious
clergyman, diffidently requesting.
..

CHICAGO 4
'J Underwriters and Distributors

take

, i

Open in Philadelphia
rence

been

State

the past six months come of age
arid learned to vote. It is easy to
see the change in attitude toward
the scientist of the man in the

street,- and

Garrett, Monaghan to

ment, and by government, which

& Go.

The

pel us to be thoughtful,, but by no
dismayed.
In .any case, science has within

ward himself. This

industry,

10% margin. Sci-;

means

economics; our economics by our
industry; our industry by our
technology; and our technology
by our science.

which stands to profit immediately
and directly by such an invest¬

-present world situation should im-

need¬

and this is a responsibility
which should be shouldered in in-

ceasing

a soldier,
lawyer, jurist, and executive.v
Let us never
forget that our
politics are determined by our

.iff*

SCHICAGO

has-

lifetime.

are

ed,

BOARD OF TRADE BUILDING

regret

degrees,

graduated 60,000 engineers.

increased

her number of colleges eight fold
since 1914; : She has doubled her
number of college professors since
1925.
During the war, while we
were shutting off our
supply of
doctors for

! Those are the words of

will

trouble; getting; research

workers.

to with such

country in the
eloquently

Wilsonovitch - of the

entific research has made people

Knee land

surely^ahnot in ^the^pverall-view
f& regret that ; this process. is being
,

And in

hope.

^SECONDARY MARKET

:h'\ 0,

"sometime;^^yo

has it been'listened

world does it speak so
as
in our own."

MIDDLEWEST

are,normallyunstable.T.Mankind
must

the

stands to profit ultimately in* the
general economic improvment..
Secretary of War Patterson has
said, "There is a great voice in the
world today, the voice of science
and technology.
It is a voice
heard
since
ancient
times, but
never
until today has it spoken
with
such
authority;: have its
words been so filled with promise,

for foreign trade, but I would hate

re¬
volvers Under normal conditions,
and after all, civilization is main¬

ly the

adopt. Dr.

of controlling the misuse of

workers, and would

many

example,, to stake the economic future of

you canuntil you are blue in

revolver.

gin of

two years.

and

that of the present American mil¬

plex than

availability of useful energy. Each
of us now has at his beck and call

him.

The military and poltical impli¬
cations of the atomic bomb cannot
be so readily brushed aside, but
scientists have overemphasized the
gloomy side to bring our people
.

time research

four

energy equivalent to
80 of the
human slaves that worked for an

foolish

was so

Wilson said that the petroleum in¬
dustry has several thousand full-

sive increase

why it

dynamics, that energy can neither
be created nor
destroyed except
as matter is destroyed or created.
In saying the machine won't work

can

which

won't work; he knows that it con¬
tradicts the first law of thermo¬

speaker stated that
he expected the sun to blow up in
about fifty million years. One of
his hearers asked him to repeat,
and then panted, "Thank God, I
thought you said fifteen million!"
years

so, how" much?
given in the title
report, Science

of the recent Bush

research make

The answer is

doubt;

When an inventor brings a Per~
X-ray outfit?
When I was a small boy people petual motion machine to a scien¬
were worrying about our atmo¬
tist, of the sort which purports to
sphere being wiped off, by the tail give; put i more energy; than it
of Halley's comet. We went right takes in, the scientist doesn't have
through this and wouldn't have to spend any time analyzing ■ de¬

richer?

them

over-all

in.

tion

have

Scientific research makes peo¬

is. accus¬

when

to take science seriously.
It is
beginning to recognize that our
supply of scientists is dangerously
low, made so by ; short-sighted
draft policies which no other na¬

carburetor.

•

For the first time in history, our
national government is beginning

Russia.

likely- to be im¬
patient with. the messy details of

1896,' but how - much time have
recently worrying about
looking into your bath¬

looking into.

control the speed of an auto¬
mobile by drilling holes in the

approaching

The scientist is

someone

room

be pardoned for naively feel¬
ing that plowing cotton under, or
killing off little pigs, like trying
may

and

problems^-the "3 c i e n t i f i
Method.",

one

you spent

with

atomic

rectified it will be, the scientist

society

outfits

and until this is rectified,

level,

something

This is his method of

X-rays
improved since

have been greatly

;

than

by cable is true, there
privacy in a man's

contribute

can

can. in the future make
richer by several hundred
fold. Scientific research is worth
them

change and a thousand other de¬
tails, but you mustn't overlook the
that what really counts is
goods and services received in re¬
turn for goods and services.Frequent use of the term over¬
production bothers the scientist,
for he knows perfectly well that

pro¬

seated

person

597

Specialists In

o
o

PUBLIC UTILITY

INDUSTRIAL

RAILROAD

INVESTMENT TRUSTS

TRACTION

OVER-THE-COUNTER SECURIRES

:
o
©

FOR DEALERS

Science has much to contribute

to
'

economic • deevlopment,
but
scientists also! have something to

'contribute to economic thought. I
heard a Professor of Mathonce
:

ematics take

suits

nomics

exception to the

doctor's

which

submitting

had
?

thesis
been

re-

eco¬

obtained

questionnaires

LEASON & CO., INC.
..

'-...i.

39 So., La Salle St., Chicago 3

Telephone State 6001

Teletype CG 982

Western

Union Telephone

TELEPHONE

DEARBORN ISO!

tjUL£JL£JLiUULfiJULkJL$UUlJUUL$L^^

TELETYPE

01
o

CG 955-956

LSLS2_C_3

THE COMMERCIAL & FINANCIAL CHRONICLE

598

Thursday, January 31,1946

tion which denies the .countries of

American wage
(Continued from page 528)
ture overshadowed all that and —enough to keep the worker and
we
maintained that no industry his family in decency and com¬
women

shall be an

right to survive
unless it established and paid to

fort. '
Is there any

its

has

could

claim

the

workers

American

wage

thinking man who
the economic

studied

ever

you

democracy.;

Wage Policy

A. F. oi L Wants No Fluctuating

were when

the right to freedom, liberty and

men

It is much easier for the

Wants Free Enterprise

masses

the

economics,
who
that the wage of Amer¬

study

maintain

American

That is sound,
hot, fluctuating

of the

people, in fact business as
pass from a
peacetime
economy into a wartime economy

Secondly,. we
are
passing
through a very trying economic,
social and political period but we
need not be surprised if we take
into account the facts as they ex¬
ist; We are living in a

well,

than it is to pass back from the
wartime economy to the peace¬

ican workers shall be based upon

fluctuations
Can

uncertainties.

and

accept that?

main¬
tain
that
the
wage
shall
be
gauged upon an ascending barom¬
we

eter then

must equally agree

that the wage shall go down if the
barometer goes down. The Amer¬

then

Well,

down.

and

above

all

maintain that

American

demand

the wages

working

and

guaran¬

income, so
economically possible
for him to have it, that will pro¬
far

it is

tect him and his family and keep
them in decency and

It occurred

comfort.
that I could

properly refer to that be¬
have noticed now some

sort of

new

philosophy being

ex¬

pounded which we regard as dan¬
gerous
upon

paid to that

men

tee the wage earner an

cause we

the cost of living shall be
considered when the wage ques¬
tion is being considered but first

will agree
sun. We

the

main sufficiently high

very

that

we never

maintain that our wages shall re¬

osophy. It is true that

insist

must

wages

to that—never under

ican Federation of Labor does not
maintain such an economic phil¬
we

our

-and

unjustifiable,

based

vacillations and fluctuations

we can never

or agree

to.

The-Muter-Company

There is

system.

;; between

ence

great differ¬

one

the

Per¬
differ¬

greatest

form

there

are

strikes.

want

Do you

returning service men feel the ^
satpe, when they come back homei1;
as
they ; did when they turned
,

psychology and

new

just

ourselves

we must ad-

these

changes
thinking.

and to these lines of

Calls for Patience
What

need

above

now,

everything else, is the exercise of "
patience and good judgment while I
we are passing through
this re-!
adjusting period and if we will v:
just exercise patience; and good! \

judgment in du6
we

We are filled
apprehension over the ad¬
justments
and
changes
which

is that in the first, the to-

talitarian

before the war?

war

they did >i
think the

With

ocratic form of government.
ences

same as

the present time.

form of government and the dem¬

haps

the

workers feel the

keep what we have
acquired, we want to have.
We
do not want to give.
There is the
basis Of much of our unrest at
we

totalitarian

the

and

women

their faces across the Atlantic and
time economy.
Men and women' the Pacific?
They think differ-*"'
are reluctant to give up anything
ently now. We have developed a'

wage

tom

and

philosophy of labor who would
agree to a plan that would fix a where men are free, we are living
they ever have and, in passing
upon
such a fluctuating in a country where the free en¬ from the wartime to a
solid, abiding —
peacetime
basis as prices? That would mean terprise system prevails and, first
and unsteady.
economy, we find we must make
that if through competition, over of all, it is of transcendent impor¬
But now, in these later days, we
adjustments. We must adjust ourtance that we preserve democracy
have been reading in the news¬ which we have no control and
solves to changes and the trouble
labor has no control, the barometer and freedom and, secondly, that
papers that there are* those, men
is we are reluctant to do that. We
we
preserve our free enterprise
who have lacked experience in would go down to the very bot¬
want to hold on to what we have,
that would maintain

standard of living.

they, went into it?. Do
the, returning service ^

think

government,
But, who

threaten

wants to live in a country, after
they have gone through the exn
periences of democracy and free¬

Wd must have

us.

vision and

a new

outlook and all

new

that goes into the situation as we
now find it.

find

will

course

of time

have

passed
trying' period and have! !
settled down upon a solid, sound,*

through

American basis.
The

trouble, is

that

there

are

soihe Who become

impatient. We
find people who believe that we;
and while we may change, many ought to find a: statutory
remedy;
things it is difficult to change for eveir^ sbci^ pbHticahand eco¬
that. It is these human character¬ nomic ill, through' legislation.
In
istics, these human qualities of other words, they feel we ought
human nature which enter into it to go to the lawrtnaking bodies
enjoying, all our rights, even all. We go through these experi¬ and. prevRil
ubdfr them to pass a
though we may be compelled to ences through which we are
pass¬ remedy by law. v Well, those who!
suffer some inconvenience.
The
ing following any great upheaval engage in that line of thinking
law of compensation works.
We and surely we
passed through one are shallow thinkers. Experimentscannot have liberty and freedom
of the greatest upheavals that any in democracy, freedom and lib¬
without paying for it.
We must
people ever passed through in all erty show that what we need at
pay something for those blessings
the history of the world when we all times is less Government and
and I would rather pay a little
went through this awful war. Do not more of Government. How d£
and enjoy freedom and democracy
we expect to maintain a free en¬
than to be subject to government you think men and women came
terprise system if we are going to
control and government domina¬ out of that war the same as they
pass a law for the

dom, where they do not have the
right to strike*
Would we' want
to change our conditioin to the
other?
Would we prefer to live
in; a ; strikeless country with no
rights than to live in a democracy

Human nature is human nature

purpose of cor¬

Consolidated Gas Utilities

recting ^ what ^believe is

so¬

cial -and economic >ill?; There is;
no law more inexorable than the '•

Chicago Corporation

economic law and do you think
you can change an inexorable law

DAVID A. NOYES & COMPANY

Circular upon request

by passing

artificial, legislative

measure?

Stocks - Bonds

Commodities

208 So. La Sallo Street,

HICKS & PRICE
NEW YORK
CHICAGO

NEW

YORK

STOCK

CURB

STAte 0400 r
~!.w&\£*-w. »i'K£

1 Wall

MERCANTILE

Street, New York 5, N. Y.

lation. We'feel^ure that if

we doi *
In¬
stead Of passing legislation of, this,
type: what we need to do is show"

(ASSOCIATE)

•

Chicago Stock Exchange
Chicago Mercantile Exchange

Winnipeg Grain Exchange

that

Branch Offices
-

CHICAGO 4

236 SO. CANAL ST.

Telephone BOwling Green 9-1432

we are men

and

ment

Board of Trade Building
INDIANAPOLIS, IND.

Chicago Union Station

Monthly Stock Suthmary jtent free upon request

patience# -

with good

common

? ^^s >?

•

judg^i
and!

sense
• ■',fj;

«v. ^ • *'

Would you believe it if I told
i.:

that in this: trying situation*

you

there
1%

are

less than one-tenth

of: the

7,000,000 members of
the American Federation of LaWr
bor on strike? Are these 7,000,000 r
w ork ers,
affiliated .with the
American Federation of Labor, to
be punished through the enact-;

LEECE-NEVILLE CO. COMMON

NU-ENAMEL CORP. COMMON

ment

TEXAS SOUTHEASTERN GAS CO. COMMON

SINCERE AND COMPANY

anti-labor

legislation?;!
It ia

Who will say "y^s" to that?

unjustifiable.
We have found from experience

WEST OHIO GAS CO. COMMON

MEMBERS OF

;

and, I know, outstanding thinking
representatives
of
management!;
will say that they have found

New York Stock Exchange
and all Principal

J. J. O'Connor & Co.

Stock and

from

experience that

cannot!

promote industrial peace in that;
way. We can promote it better by
working together as free men than;
we can by working handicapped!!^
through the imposition of statu¬
tory laws* !Ih Order to reduce in-*

Commodity Exchanges

Incorporated

CHICAGO

135 South La Salle Street

CHICAGO 3
Telephone Franklin 8200

will live to repent.

not we

Chicago Boarif of:Trad<

New York Stock Exchanio ^ V;K "
New York Curb Exchange (Assoc.)

EXCHANGE

Telephones Randolph 5686 and State 1700

-itA.-yfr ■$>i\

•

EXCHANGE

231 SOUTH LA SALLE STREET
Teletype CG 972

reason why labor is
standing hetOviminovable and un^ •>
compromisingly against theenact-^*
ment of hasty, ill-conceived legis¬

EXCHANGE

CHICAGO BOARD OF TRADE

CHICAGO

Decries Ilasty Legislation

That is the

Chicago 4

dustrial

Teletype CG 635

strife

need

better/

collective bargaining system.

need

engage in frank, open^'
sincere collective bargaining,*

where

FOR OVER

feeling
:>

CENTURY

'
.

'"'r.

'■

;V:/'v V''

■

•'•

•

.■

-'''

' ^

mental;; reservations
collective^
bargaining ought to be frank and !

•

sincere and the representatives of
labor

'"A

V'L ''

Meritorious Securities.

•>

•!

'Vfrv. u'[ V. (;V.

is C,.

should

friends, open!
other, and

Phone Central 5690

Arbitration!

develop voluntary arbitration.

These
Telephone ANDOVER

vr'

Another thing we need to do is
to

Teletype CG 878
.,

each

Favors Voluntary

CIHCAGO 3

SOUTH LA SALLE STREET, CHICAGO 3
1

the facts,

upon

SMITH, BURRIS & CO.

CASWELL & CO.
Teletype CG 1122

management
with

the outcome of; their deliberations

'M "

120 SO. LA SALLE ST.

120

frank

and

arrive at the facts and then base
*.

Specialize In The Acquisition & Distribution of

and

talk to each other

STOCKS and BONDS

STOCKS & BONDS
We

be; presented: and ; instead of
deception i and

shadow-boxing,

INVESTMENT TRUST SHARES

INDUSTRIAL & PUBLIC UTILITY

sit: around the table*
interest in each '

a common