Full text of Commercial and Financial Chronicle : January 4, 1945, Vol. 161, No. 4348, Section 1

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5

JAN
Edition

Final

Reg. U.

Volume. 161.

OVER 100

ESTABLISHED

New

Number 4348

1945

in 2 Sections-Section

YEARS'

1

Pat.'Office

S.

Price

York, N. Y., Thursday, January 4, 1945

Gustav Metzman

60 Cents

Copy

a

Restoring Stable Moneys

Board Member of
By WALTER E. SPAHR

By IVAN WRIGHT

u:; V,

Economics, New York University

Professor of

*

Professor

,•

of

Economics,

regular

a

of

meeting

the

Board of Directors of J. P; Morgan
&
Co. Incorporated, on Jan. 3,
Metzman

Gustav

elected

.was

a

member of the

/v
'

Mr.

Board.

has

Metzman

Presi¬

been

of

dent

the

York

New

Central

Rail¬

(4) the Manipulation of Federal Reserve Bank Notes;i

Silver Coins;

(5) the Allied Military Fiat Currency; (6) the Continued Suspension
of the Gold Coin Standard; (7) the Confusion Regarding the Meaning

Money" and "Legal Tender," and (8) the Elfectiveness of
Agreements in International Exchange Stabilization,

of "Lawful

the Bretton Woods

He

1,

1944.

was

born

in

Baltimore;
Md., in 1886,
entered

and

For

V

or

dozen

a

dangers in

business

as.

Adminis t
t i on,

of

staff

1916-17,

York

1942

lines

served

for

Chief of Rail

as

and

the

with

and

to

i

s-

.

ern

S. Army, at

"%

-

Spahr

criticisms

admit

B. Delafield to

Clelia

limited partnership as of

Jan. 11.

on

page

.

time

to

issues with

have, of course,

ucts are

them

of

Some

that

understood

they

what

(Continued on page 70)

Circular

/"/-■'

Buy War Bonds

Request

on

the

of

.

by

Hni I FUNDAMENTAL

Successors

HIRSCH,

PROSPECTUS
&

CO.

and

other

London

-

Exchanges

>"

Chicago1

Teletype NY 1-210
V

Cleveland

MAY

OBTAINED

64 Wall Street,
BOSTON

Actual

BOND
BROKERS

84),

page

Bond

v.:

,

Trading

Syracuse
Dallas;

iviarkets,

always

ELECTRONICS

cash
Dr. Ivan Wright

* g"

/'

;

tions

'

.

set

are

economies

v/7:;/4u'or

from

■

>../.„•1 /

HUGH W. LONG and COMPANY
wall street

new york

:

634 SO. SPRING ST.

LOS ANGELES 14

5

barter

and

regula¬
protect the

trade
to

up

of the

-

;V-

,;//■:

stable

-

currency

and

cheap goods of the countries

with unstable currencies.

Mere

legal and political enact-

(Continued

68)

on page

'

Municipal

■*'

■'

-•

'

-

and Dealers
! /

Hardy & Co.

Bond Department

THE

.

CHASE

Members New York Stock Exchange

York Curb Exchange

Members New

30 Broad St.
Tel.

New York 4

DIgby 4-7800

Tele. NY 1-733

Philip Carey

NATIONAL BANK
OF

THE

CITY OF

New

Manufacturing Co.

NEW YORK

England

:

International

RAILS

INDUSTRIALS

Public Service Co.

Detrola Corp.

PREFERREDS

Electrolux

Bull, Holden 8c C°

Kohbe, Gearhart & Co.

MEMBERS NEW YORK STOCK EXCHANGE

INCORPORATED

Members N.

14 WALL ST.. NEW YORK 5.N. Y.
TELEPHONE-RECTOR 2-6300




Y.

Security Dealers Ass'n

45 Nassau street
Tel. REctor 2-3600

New York 5

HART SMITH & CO.
Reynolds & Co.
Members New York Stock Exchange

120 Broadway,

Telephone:

New York 5, N.Y.
REctor 2-7400

Teletype N. Y. 1-576

Philadelphia Telephone;

Enterprise 6015

Bell

Teletype

NT

1-635

Members
New

York

Security

Dealers

32 WILLIAM ST., N. Y. 5

Bell Teletype NY

New York

Assn.

HAnover 2-0980

1-395

Montreal

Toronto

s

a

countries against the cheap money

Brokerage

tNCORI>0*ATI»

48

or

i
to

basis,

I

BE

DEALERS

AUTHORIZED

New York 5 .
PHILADELPHIA

Albany
Buffalo
Williamsport

Troy
-

reduced

The

FROM

Established 1927

//'" '/INVESTMENT SECURITIES'

25 Broad St., New York 4, N. Y.
HAriover 2-OGOO

R. H. Johnson & Co.

-«•;

Geneva Rep.

on

for Banks, Brokers

to

ULIE^THAL

Members New York Stock Exchange

countries

INVESTORS • INC'

victory

i tely,

n

Mr. Walker at the Marketing Confer¬
Management Association, Waldorf-

Hirsch & Co.
i

d ef i

trade between

New York City, Jan. 3, 1945.

(Continued

■

the secondary

be

in-

on

American

Astoria Hotel,

Q. Forrest Walker

is

produced, marketed and consumed.

address

"An
ence

was

distribution

money

.not

can

counted

These Wastes

the life history of every commercial
Raw, semi-finished and finished prod¬

stage in
product.

various

follow the

care,

confused.

basis.

of

ue

and Are

or

a

When the val¬

Marketing Where

Marketing

have been deeply disturbed, either
because they have not been sure

Aircraft & Eng. Co.

Retail

are

to

hand-to-

Particularly. Important
Expensive Customer
Services Add Materially to Operating Costs. Warns
Against the Indiscriminate Use of Statistical Aver¬
ages in Measuring Costs and Asserts That Low Mar¬
keting Cost Is Not an End in Itself and Will Not
Necessarily Produce Maximum Sales and Profits.
in

Busy people, not specialized in
matters and with insuffi¬

been

66.

Y

trade

subdued

Throughout All Production and Distri¬

bution Processes

these
cient

Pennsylvania Securities Section

prod uction

Turn-Over Practices,

Delays
Are FoundT

warnings by monetary economists

will

strained, and

-

and others have characterized the

field of money.

are re¬

mouth

and

Delafield, 14 Wall

all
trans¬

actions

Expert Stresses Importance of Improved Accounting in
Measuring Distribution Costs. Points Out Opportunities for Economies
in the Elimination of Time Wastes, Transportation

gov¬
merit a 1

can

confi-

e n c e

credit

Marketing

Con¬
gress i onal
hearings, and

Admit

Exchange,

d

Economist, R. II. Macy & Co., Inc.

Y

actions,

/

of the New York Stock

people

<5>

By Q. FORREST WALKER*

.

unprece¬

Street, New York City, members

Delafield &

Its Equivalent.

or

of the government of each country to provide an
honest and dependable currency.
Without a stable currency in which

and
.

dented

Dr. Walter E.

Delafield

Payable in Gold

It is the duty

Cost Problem

unusual

ings,

months

,

tional Balances

-

Division, Trans¬

Corps, U,
Washington
D. C.
portation

ri

trative.ru 1

In

1920.

in

proc-

tions,

a

a m

adrai

during

some

Attempt to Superimpose! New and Controlled Money Upon
Currency Conditions Throughout the World Will
Not Succeed.
Advocates a Sound Convertible Currency With Interna¬
That Any

the Present Chaotic

of

Presi¬

dential
1

Tariffs, Quotas,

as

The Nature of the Distribution

-

this
mul-j

e

laws,

lie joined the New

Central
he

the

Confer¬

Administration

World War I.

a

titud

Eastern Presidents

Railroad

period

the

on

was

r a

Such

Systems and the Like, Must Be Corrected Before Stable
Currencies Can Perform Their Functions in International Trade and
Two-Price

have

'

During

He

1903.

Holds that Government Regulations,

rencies./

and•

others.

timore & Ohio
in

Monetary Stability and Asserts Mere Legal and Political Enact¬
Promises Will Not Establish Sound and Dependable Cur¬

—

Congress,
the
Federal

a

Government's Stability to

a

and

ments

y;veconomists,^

Bal¬

with the

agitating-monetary

monetary structure have been

clerk

copy

controversies regarding the virtues, defects,

years

our

railroad

the

in

Gold; (3) the Power to Alter the Weight of

Power Over the Price of

Sept.

ence

Maintain

iTpahr Points Out the Following Monetary Problems With Which the
People Are Now Concerned: (I) Greenbackism; (2) the Treasury's

road Co. since

Gustav Metzman

Economist Stresses Need of Confidence in

Asserting There Is No Indication That the Policy of Polluting and
Diluting the Monetary System Is to Be Curbed or Abandoned, Prof.

College

Brooklyn

Secretary, Economists' National Committee on Monetary Policy
At

ira HAUPT & CO.
Members

111

of

Principal Exchange*

Broadway, N. Y. 6

REctor 2-3100

j.

Teletype NY 1-1920

COMMERCIAL & FINANCIAL CHRONICLE

THE

58

1

Trading Markets in:

.

New York New Haven R.R.

Members

Dealers Ass'n
Dealers, Inc.

Security

Members N.

|

BROADWAY

115

HA 2-2772

Telephone BArciay 7-0100

Bought—Sold—Quoted

.

McDonnell

J

....

*

.

.

Sold

—

lei.

NEW

KLctor

Request '

on

YORK

Members Ntu

York Stock

•

■

Kearney & Trecker

& Vending 1

Peerless Weighing

& Preferred

Common

/•

Pfd.

Sirian Lamp,

Measures to Insure Their Sound

Home and

Operation.. Contends the Price Record

Leading Investment Company Shares Show a Better Performance
Than the General Market Averages and Demonstrate the Working of

if

"Leverage? Principle in Connection With the Purchase of Invest¬
Company Shares for Income! and Appreciation., Advocates the
Use of Investment Company Shareshby Small Investors for Diversirica-.

the,

ment

MitctelUCompftiuj
Stock Exchange
Broadway, N. Y. 5

Baltimore

Members
120

iicn

Purposes.

WOrth 2-4230
Bell

I

Y. 1-1227

N

Teletype

to; thank

want

for the in vita-

Intern ation al

{

Direct wire* to

PHILADELPHIA, PA.

his

appreciation

Rober

—

H. O'Bi ien has resigned as a com¬

missioner, of

.the

.

Securities

:

f

•

■

••

•'

torney in the Registration Divi
sion' of. the SEC. in September
1934v and later served in the
as

a

Commissioner b;

Roosevelt

Feb/

.on

'Kl- Y

K:r^|l Company

N. E.; Public Service
: '• •'

Iv'tta"'1 7s >. Pia.n T. P;d.

.

American Gas & Power

H

Assistant Director.

appointed

President

same,

,

3

Edward A. Purcell & Co.
Member* New York Stock Exchange

1942.,.v-:.

:*■

Members New York Curb Exchange

65

F. S,

by your Asso¬

••

branch office*

Southwest Natural Gas

4^-

\

our

-Eaf tern Corp.-

; ;

anc

Exchange Commission and is join
ing Paramount Pictures, Inc., a.
Special Assistant to the President
Mr. O'Brien was appointed an at-:

was

good friend Beardsley Ruml;'for

I also want to express my deep

extended

tion
*

very

my

?v

division

t

~

,

excellent introduction.

NV 1-1557

La.-Birmingham, Ala.

f

Abroad and Points Out Their Past! Errors and the Present Protective

& Pfd.

La France Ind., Com.

By ARTHUR WIESENBERGER*

Reviews Development of Investment Companies at

Broker

New Orleans,

Option On the Markel S§§ Joins ParamcMl

•::'

•

Preferred

Common &

O'Brien Quite S&5;

An

Excnung*

St., New York 4, N. Y.

HAnover 2 0700

Elk Horn Coal

/

2-7815

25 Broad

Carborundum, Com.

Quoted

-—

Steiner, Rouse & Co.

Exchange

120 BROADWAY,

V

J'v * Analysis

Exchange

York Curb

Neic

J

Stock

TELETYPE NY 1-423

BELL

Bought

Mr tube it
York

New

Teletype NY 1-672

>•

.

•Pi R. Mallory & Co., Inc.
v

NEW YORK 6, N. Y.

•„

-

-

Rockwood Co;.

•

,

5% Preference*

r

.

Other Principal Exchanges

Y. Stock Exchange and

Securities

Exchange PL, N.Y. 5

40

•

:

Goodbody & Co.,

Established. 1920

of

CANADIAN UTILITIES

J

Canadian Securities Dep't.

KING & KING
York

■V.v,>

CANADIAN MINES

:.

•

Old Com. & Pfd.

Ass'n

si||CYANAMID.|^

CANADIAN BANKS

American Barge Lines

New

Avondale Mills

AMERICAN

CANADIAN INDUSTRIALS

Franklin Stores'

Nat'I

U. S. FUNDS for

We
Maintain Active Markets in

Corp.

Lanova

Thursday, January 4, 1945

JMjurra^ IWcGpiinel Is

Moseley Absorbs

Broadway

Bell System

WHitehall 4-8120
Teletype NY 1-1919

ciation to talk

Power Securities

keenly

Savoy Plaza
on

N.

this

by

Curb Exchange

York

Members New

31

COrtlandt 7-4070

Telephone
Bell

bytsiem

war

New York 5

Nassau Street

Teletype

NY

ford

W. L.

Douglas Shoe

Conv.

Kooker

\

Electrochemical

1952

Struthers
Common &

Wells

Preferred

8. G. BRUMS & CO.
New York 5

Telephone:'WHitehall 3-1223
Belt

T'letvpe

1-1843

NY

:'

speqnc ousiness. Then they
to their own language to

too

no

complete accuracy,
many facts, and figures
is

involved to trust'to

ire

After

memory.

brief historical comment

a

companies

investment

in

take

Factual

companies show a better perform¬
ance than the general market.

Common

Old

&

Marion Steam

Old

erage,

Preferred

of Lev¬

Shovel, Pfd.

glamour aspect of in¬

the

leverage

chosen

well

and
why
shares apbears. This

companies,

vestment

oeal to either bulls or

Common

U. S.

&

Works

like double-talk, but
double-talk.
After

may

sound

It

Preferred

sensible

is

heard it, I think you
will agree that here is a case of
having your cake and eating it
have

you

Finishing, Pfd.

too!

*eeYleand,

'iv- '■'■■■'

•

';v'\

■

practical

Third: The many

uses

Members

direc¬

a

37 Wall

Y. Security

St., N. Y. 5

Dealers Assn.

Hanover 2-4850
1-1126 & 1127

by Mr. Wiesenber-

*An address

Teletypes—NY

firms oc

eupying positions of leadership in
;he financial field.
F. S. Moseiej
& Co.,

organized in 1879 to deal i:
paper, are prominent

Gar^kckcl

T
I

neries,

£ i

e

New York

Exchange,

City, Nov. 28, 1944.

(Continued

on page

Stores. He

YORK

5

investment

in

securities

addition

stock exchange business

to "their

Arthur Perry
has

of

distributors

and

been

a

!

securities

entire staff of Arthur

maintains offices in Boston, New.
York, Chicago and Indianapolis.'
The

consist of Neal Ran-

Arthur

toul,

of F. S. Moseley

partners

Co., will

Charles

Perry,

C

Auchincloss. William Bayne: Her¬
D.

Boker,

Alvah R. Boyn-

ton, Herbert F. Boynton. F. Wadsworth
Busk, Leo F. Daley, F.
Fletcher Garlock. Melville P. Mer-

rector of J. G. White

Company established 1926

•

Produces Viscose Rayon
Annual

& Co., Inc.

Ernest J. Woelfel.

y'

Now J. A. Williams & Co.

the change

of firm

Williams

Jan.

&

name

2nd.

to J. Al¬

Inc.

Co.,

-

as

of

<:

for

Ratio Current Assets to Current Liabilities 6 to 1

Wm. Cowan Ss Willi

Analysis

Paine, Webber Uptown

Members

111

wilh

town

been with Harris,

Upham & Co. since 1939 and

prior

R. W. PRESSPRICH 8C CO.
.

associated

was

Munds, Winslow & Potter as

their

of

ager

Now Frost,

several

Members New York Stock Exchange

68 William

Man¬

uptown

BOSTON:

>

v

1945,

1,

the firm name

•

Devonshire

201

of

St.

MUNICIPAL,

RAILROAD, PUBLIC UTILITY
5C

,

BONDS

INDUSTRIAL
INVESTMENT

Knowledge

Inc., 21 Broad

•

...

STOCKS

Experience

Facilities

•

for Investors

Frost, Read

Street, was changed to
&

Street, New York

GOVERNMENT,

Read & Simons

Frost, Read & Co.,

(

with

CHARLESTON, S. C— Effective
Jan.

NY 1-1026

745 Fifth Avenue

office at

that

Security Dealers Ass'n

Y.

the firm in its up¬

Mr. Cowan has

to

N.

Broadway, New York 6, N. Y.

BArciay 7-0570

William H. Cowan has become as
soc.ated

-

Request

on

F. H. Holler & Co., inc.

& Cur¬
tis.
members of the New Yorl
Stock
Exchange, announce tha
Paine, Webber, Jackson

/

EAST

ORANGE, N. J.—Wil¬
Parmele & Co., Inc., 44
Church f Plaza,
announces

Yarn

$1.50

'

branch offices.

■:

Dividends

past five years
•

"itt, Ben P. P. Moseley, Harry C.
Bobbins, Ernest L. Ward, Jr.,-and

Rayon Co.

•

di¬

since

Perry & Co., Incorporated, will be
associated with 'the firm, which

&

*

& Co., Incorporated,

mun'cipal
The

dent and

McConnel

Murray

leading Boston under-

writer and distributor of corporate
and

•

Presi¬

-

HAnover 2-9470

Class A Stock ($15 par)

was

underwriters

bert

76)

Exchange

Curb Exchange

NEW

Delaware

c.;
and
Dixie-Horn e

formerly F'rst

Brick

at the New York Stock

York

New

ST.

Teletype NY 1-1140

n

Vice

liams,

Co.,

York Curb

&

commercial

Wiesenberger &
City, before the

of Arthur
New York

ger,

New

Co.; Mid-West

The merger unites two

Association of Customers' Brokers

Bell

WALL

i4

of 'Julius

•

Members N.

on

Frank C.Masterson & Co.

Mr. McCon-

nel is

.he New York Curb Exchange.

mann

United Piece Dye

*Dealt in

\'v

tor

-1916.

proof that these

Second: An explanation

Long Island Lighting

will

I

aspects

three important
industry;

up

of the

Standard Engineering

made

they

First:

Aetna

I

:

& Co

*

'oerships in the New York, Boston
rnd Chicago Stock jExcnau^es dpY

urned

md

20 Pine Street,

J

i

Arthur Wiesenberger

;

until we began

ibjective

the f:rm.

Preferreds

&

Mtge. Gear. Com. & Pfd.

general
partnership in
-

F. S. Moseley

mistakes.
So, this afternoon, I would like to
isk your forbearance for read¬
ing from notes.
I, too, want to
re
sure
to avoid mistakes.
My

Limestone

6s,

English,

sure

exchange commission
commercial papei

and

(Va.)

Debentures

5%%

Nat. Commercial Title &

has

to

business.

^

ie

Common

Indiana

in

...

juine

stock

business

St.

Common

been admitted

general

their

discussing

Preferred

Prior

Connel

*5%

Murray; Mc-

ganizations during many years of
service to investors, in addition to

Ox¬

Central States Elec.

Com. S hearing'8. Stamping

change,
an¬
nounce' that

investment banking
the two or¬

the

quite
best

Ex¬

Stock:;

business developed by

the

talkative
the

Byrndun Corporation

large

banker friends
were

1-1548

person¬

and resources . of
Arthur Perry & Co., Incorporated,
with their firm and will carry on

French

my

the

the merger of

business

nel,

attendance.
Before

Hayden, Stone & Co., 25 Broad
Street, New York City, members
New York

nounce

I
highly
complimented

Vanderhoef & Robinson

Hayden, Stone Partner

50 Congress Street, an¬

ley & Co.,

for

me

S.J,-

Perry & Co.

BOSTON, MASS.—F. S! Mose¬

inter¬

am

Curb Exchange

Y.

so

many years.

3/6s, 1956
Traded

has

ested

Arthur

subject

that

6V2S and 7s

♦

the

on

Simons, Inc.

Associated
continue

We

Gas

to

suggest

send for our detailed

that

dealers

Wellman

report on

FASHION PARK, Inc.

Associated

A

strong

field.

Electric

and

unit

Owns
Weber

reconversion
war

in

trade
&

the

men's

name

clothing

chain.

Excellent

Ij

It

PINE
(

ST.,

N. Y.

5

Inc.

WHitehall 4-4970

"

Troster,Currie & Summers

Teleytpe NY 1-609




St., New York 4, N. Y.

HAnover 2-0600

Tele. NY 1-210

N.

Y.

Security Dealers Ass'n

74"Trinity Place, N. Y. 6

Members New York Stock Exchange

25 Broad

on

Corporation
Common

Request

WM. J. MERICKA &

post¬

possibilities.

Members

«

Circular,

Stock

No

Simons, Linburn & Co.

G. A. Saxton & Co.,

Eastern

Engineering

Company

I

SWASEY

"Stein-Bloch"

Heilbronner

problem.

WARNER &

Teletype
Private

Wires

Detroit

-

NY
to

Pittsburgh

-

Union

-

St. Louis

Bldg.,

29

Broadway, New York 6
WHitehall

Direct

SOLD

&

QUOTED

Cleveland 14

Telephone MAin 8500

Cleveland

BOUGHT,

Cleveland Stoch Exchange

Commerce

HA 2-2400

1-376-377

Buffalo

Co.

INCORPORATED
Members

Private

4-3640

Wire to

Cleveland

'(oc/a z'-'
MEMBERS

One

Wall

NEW

YORK

Street,

STOCK

EXCHANGE

NeW York

5,

N.

Y.

COMMERCIAL and

The

Old Colony

R.R.

.Publishers\

1959..

25 Park
.

Herbert D.
,

■■■■ •>'

Missouri Pacific
Sec. 5 %

.

Seibert,"

New

4,

1945

Thursday

Harrison 2075

Teletype NY 1-832, 834

Teletype CG 129

;

Members New

1944

Copyright

- 13o
S. La- Salle St.,
(Telephone: State 0613>;

by

Reentered as

Securities Department

■

Teletype.NY 1-5

ruary

Yoik,

Specializes in

1

-

j

>;

In United St?+e« nnrtj
$26.00 per year; in Dominion

I Subscriptions

TITLE COMPANY

Possessions,
of

CERTIFICATES

$2/.aU

Canada,

America,

Central

>car;*&i1
Mexico and1

per

Spain',

Monthly Earnings

Mewburger, Loeb & Co.
Members

40 Wall

New

York

''T'

Record—Mth. $20 yr.
Record—Mth.. .$20 yr.

NOTE—On account of the-fluctuations
rate of exchange, remittances for

Privileges

t"

knowledge

'

were

'

.

Harnischfeger Corporation, * ,V

X

Milwaukee, Wisconsin

t

have

I

been

matters of nutionaT im¬

portance

and

111:-;

I

that

;.J

appeared on behalf of the Trading and Exchange
Division of the Securities and Exchange Commission,
Loss

"this

the

time

j

with

It

matters

which

can

come up

tion, long before it is

called

upon

to

The

Curb

ately. after
that
"

necessary

and

(Continued on page 63)




Security '

York

L

w

Dealest

r

Assn.

Ill Broadway, New York 6, N.Y.
Bell

System

Private

Teletype,

Wire

NY

Los

to

1-2480

Angeles

'

Bartgis Bros.

<

and

Billings & Spencer

York
:

Hooker Electro-Chemical

;

Albe-

of

Laclede-Christy Clay ProtL

Stone

Corpor ation.
In 1939 he be¬
came

tive

Megowen Educator Food
•••

V:-v

Vice-

;

Units

,

Execu¬
Bought

—

Sold

President of
£lmer

of

G-.

which

was

Gear-

Kobbe,

Parsly

he

hart & Parsly,
of the or¬

one

During the period 1919

ganizers.

to 1938 he was first a partner

Hinioo & [o.m
Dealers

Ass'n.

COrtlandt 7-6180

Parsly Bros. &

Co.; Philadelphia,

York Security

System Teletype NY 1-C4

Bell

and

later President of

New

Members

170 Broadway

v.;;;,

there- are

Heergaard, Her Has
JtdmM Ri G. Albiighl

SUGAR

SECURITIES

Neergaard, Miller & Co., 1 Wall
Street, New York City, announces

ture,

and

include-1

-

this

<

should

training

fundamental

•which- will -help ; to

*

teachings'

make

them

good citizens and enable then) to
"meet the problems of lifeh .'
.,■■■■
"... I am also of the opinion that, in
^. •

.

(Continued

on

page 82)

,

:

A

Robert

that

Copley Albright has

been ' admitted

"to

nership in the firm

general

Mr. Albright has been

1945;

the firm for some time in

of

part¬

of Jan. 1,

as

the

with

charge

•

DUNNE & CO.
Members New York Security Dealers Assn.

25

Broad St., New York 4, N.

WHitehall

3-0272-—Teletype NY

'

Y.

Private Wire to Boston

panama coca-cola
*

Public National Bank
•

*1':*
1944

.

$2.75

—

1943 $4.50

1942 $3.65

—

National Radiator Co.

Approximate selling price-—29
Circular

on

Analysis available

request
'-i

•

•

...

Association of.

might!

& Trust Co.

DIVIDENDS;

»v.

\

.

.

a

«

.4

»

-.

..

Hon. Rose STrsster
-

-

.

74

Established 1914

C. E. Unterberg & Co.
■

-

•-

Trinity Place, New York G, N. Y.

Telephone: BOjvling Green 9-7400

Teletype: NT 1-375

Members

N.

Y.

Security

Dealers Ass'n

Broadway, New York 6, Nf. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
1

51

•

l»95Cj

Binghamton, N. Y., office.

Dividend payable January 15, 1945—$.75

'

j

.

Request

F.Reilly&Co.

New

director

indirect advantages to hav¬

are

studies which their representatives

a

ing the youth of the country re¬
ceive a brief training as they ma¬

amply qualified to state!
their points of view in connection with the pending con¬
troversy.
These bodies were and are qualified to make;
any

believe- that

I 'also

some

determina-j
exercise such judi- i

Exchange and the National

Securities Dealers were

hence, rather than immedi¬
the end of the crisis
we-are going through. ^ 1 d

years

j

-'v

J.

]

Sold
on

,

for its quasi-judicial

cial duties.

policy).,
adequate

_•

an

believe, however, that it will be
necessary' to have ah ade¬
quate armed force in 10 or 20

|;

"position" in some

have

*Circular

more

j

a

so

Lehd-rLease

our

I

'f.,'J
the Securities and Exchange Com|

and does take

became

we

world

Com.

Allerton

rene

one

to the
liberal

the

Corpor ation

I

that

military, organization at, all times.

commented upon the;
introducing in evidence "a good deal of sta¬
He further said:
,j

mission.

that

should certainly

Loss, in behalf of the SEC,

jurisdiction of

and

New

wealth

(prior

&

Pfd.

Bought

is President

of

portion

the

of

W. Hdrhischfeger

Secur¬
Baker,

point to a certain direction, and if that constitutes taking
a position, again I say we will take a position."h ;
\
In that statement lies the ntib of our objection to

at

*U. S. Finishing

of -Allertbn

time, at least,
possessed 1 a
of the

.

-

L-

i

Com.

Corporation

" country,

which

cooperation with both
NASD and the Curb, and if the results of those data.; !

the
1

so

by 1 the
token

of

t

e n

&

REctor 2-5288

It is

same

"We made these studies in

re.

d

watchman

believe

■;£/;

United Piece Dye
Pfd.

corporation.
Mr. Parsly al¬

this

and

the]

tistical data."

in

a

,

*

as

res

|

Wickwire Spencer

Members

Parsly

Vice-P

•my" theory
that any good

argument before the Commission on behalf of
INew York Curb Exchange was made by William A.. Lock-;

Commission's

G.'

arn-

country.

emphasize these appearances because here is yet
•another instance where the Commission, which sits in judg-,
:
ment, nevertheless, actively participates in the presentation
'of the case proper under the guise of allegedly protecting;,
the public interest. We shall come later to the extent of!
that participation.
"
j

Mr.

to'

other

We

.

Teletype NY 1-1203

Triumph Explosives

E.

of

election

ex¬

sgreat

Exchange* and the National Association of Securities :
Yet, in the appearances, it is noted that Louis •

;Hostetler & Patterson.

one

treme

»

Dealers.;

,wood.
The argument for the National Association of
ities Dealers was made by Stephen C. Thayer of

'

to s;go

prone

the New York Curb J

The

ment
New-

plant requires

.

The adversaries ostensibly were

r

HAnover 2-8970

invest¬
bankers,
37 Wall
Street,
York
City, announce the

are

we

.from

hearing before the Commission
last November and oral argument was heard at that *time.

}

39 Broadway

B 'L.Gi White & Co., Inc.,

feel, at times,

.

,

applications. > '
The matter came on for

COi

New York 6, N. Y.

;

Parsly Is V.-P. cf
J. G, White & Go.
B

inclined to

am

considerably more wide¬

similar

a

prob¬

committee studying defense'

spread, and that dealers andlbrokers in securities-had a,'
| more adequate appreciation of the significance of this and'
1

of

member

a

lems and

|vileges to the following stocks: Lukens Steel Company
| Common Stock, $10 Par Value; Merck & Co., Inc. Common
IStock, $1 Par Value; Northern Natural Gas Company Com|mon Stock, $20 Par Value; Public Service Company of Ini diana, Inc. Common Stock, Without Par Value; /The Warner;
& Swasey Company Common Stock, Without Par Value;;
;Fuget Sound Power & Light Company, Common Stock, $10
_

Information

Members New York Security Dealers Ann.

E. G.

r

W. HARNISCHFEGER

11

generally known, there is now pending before the
; Securities and Exchange Commission an application by the
New York Curb Exchange tb extend unlisted trading "pri-

We wish that

Statistical

"

institution.

As is

Value.

QUOTED

-

J. GOLDWATER &

..

opinions of, respectively, a prominent Catholic
educator, members of the New York Synod of the Presby¬
terian Church and the President of a prominent educational

,

I Par

SOLD

-

tion to several

foreign subscriptions and advertisements
must be made in New York funds.: •

Unlisted Trading

WHitehall 4-6551

1

v';

" Tr

in the

Teletype NY 1-2033

Complete

reflected the

Exchange

WHiteball4-6330

St., N.Y. 5

Bell

Stock

BOUGHT

In connection with this symposium, we would call atten¬
discussions of the subject which appeared in
the "Chronicle" of Oct. 26, starting on the cover page. These

Australia and Africa, $31.00 per year,
Other Publications

STREET, NEW YORK

_

Cuba, $29.50 per year;- Great Britain,
Continental Europe (except Spain), Asia^

for quotes

us

WALL

Dept.

CERTIFICATES

equal division of affirma¬

Bank and Quotation

Call

the

get

us

TITLE COMPANY

negative responses-were received in connection with
our symposium on the question of compulsory military train¬
ing in peacetime. The.results of theunquiry have been ap¬
pearing in our columns beginning with; the issue of Nov.) 23
and, at this writing, a considerable number of responses have
not as yet been published. Some of these are given in this
issue, and it is our hope that , the balance can be accommo¬
dated in the next twTo.or three issues.
'
"

at New
March.

■

,

Let

Securities

Telephone:

tive and

second-class matter Feb¬

25, 1942, at the post Office
N. Y., under the Act of

It would appear that almost an

>11

William B. Dana Company

3, 1879.

99

York Stock Exchange

Igainsl PeaceTime Training Equally Divided

Drapers' Gardens, London, E. C., Eng-,
land, c/o Edwards & Smith...•}"^
■

Estate

Q.!

D. T.'s.

Sentiment For And

^

I

\Our Real

P. D.

us

with

days are over?
should be dumped

issue) 1

Offices:

Other

Chicago 3, 111.

on

up

best

,

(complete statistical issue—market quo¬
tation" records,
corporation, banking,
clearings, state and city news, etc.)
i.;;;

CHICAGO 4

•

Dig by 4-8640

whose

why stay hung

Obsolete

and every Monday

Ass'n

get

But

These hangovers

York "

Telephone HAnover 2-4300

Board of Trade Bidg.

NEW YORK 4

Trask & Co.

25 Broad Street. New

Holiday Hangovers
rid of them our¬

mean

can't

stocks

ill: Spencer

*'

Published twice a week
every

York Security Dealers

HANGOVERS
We ..don't
-—we

:;*V |

r

1948

Broadway

-

selves.

{general news and advertising

32

-

Business Manager

b"""-v.-1

STRAUSS BROS.

HOW TO GET RID OF

arid Industrial

PREFERRED STOCKS

s

Chi. Mil. & Gary

Membets

j

:.

President

William Dana Seibert,

Thursday,. January

5»,

Public Utility

:

„

AND COMPANY

■

Editor and Publisher

William D. RiggS,

*

:

' f

Place, New York 8

REctor 2-9570 to 9576

',r:

5», 1940 •

licHTtnsifin

"•

of

High Grade

William B. Dana Company

.

Steph N.& S.Tex.
:

interested in offerings

are

.

-

.

We

*

U. S. Patent Office

Reg.

Wisconsin Cent.
4s,

-

CHRONICLE

FINANCIAL

59

CHRONICLE

& FINANCIAL

THE COMMERCIAL

Number 4348

161

Volume

:

>,

60

THE COMMERCIAL

i'

& FINANCIAL CHRONICLE

Thursday, January 4,. 1945
BOSTON, MASS.

Fonda, Johnstown &

AMERICAN BANTAM CAR

G1 oversville R.R.

6% CUMULATIVE CONV. PREFERRED
31;

1945

.xx;

Randall Company

',j'xv •-./>,;

'

Selling price—13 ;:.V ;i;:fp
Circular

on

Request

"A"

Boston & Maine,

Harris, Seyboldt & Potter

'

BOwling Green 9-7400

Teletype:

William

52

NY 1-375

St.,

York

5,

N.

Remington Arms

Valley Monld & Iron
CHICAGO
fPe Deal in

| Emerson Radio
Franklin Stores

.

*

,

West

CARTER H.C6RBREY&CO.
;

Michigan Steel

.System Securities

Standard Stoker

q-i t

\

| Triumph Explosives

Underwriters

Dye Works

70

Pfd.

U. S. Finishing,

.

and

Distributors of Investment Securities

1

STREET

PINE

Teletype: NY 1-2425

.

,

Capitol

v

v '

CHICAGO 3

Telephone: HAnover 2-7793

A

LOS ANGELES 14

135 La Salle St
Randolph 3002

650 S.

>

•

CG 362

;

X::XX:

Trinity 3908

-

«'•

Market

Bird

Pfd.

A,Son**1

■

i

i1

-

•'

'

-■!>

i-i

-

;j'. X

:

filpE:.

[

Radio

Collins

■

Cuban

:

:

Cons.. Cement '"A"*

Co...

:

Harvester

Gleaner

>

New

Liberty: Aircraft;

'
;

231 So. La Salle St.

**

'

V-

.

INCORPORATED

Oxford

"

"

.

'•

«

;

37 WALL STREET

Pump

"A" & "B"

United

Drill

United

Truck

S.

Dr.

' Dearborn 1501.

2, /p/J.

v

I

NEW YORK 5

.%

North Texas

I

FredJ.FairmanCo
Members

Chicago Stock

v

of

All Texas
Check

NSTA Notes

Consolidated Textile
B.

Amer.

Machine,' Pfd.*

Merrimac- Mills

Palmer

Bros,

-

r

.

-

X'

-

.XX' 3- 5s

.

y

.f

/»;

■

Telephone

,
-

X;

-

-

Bell

•

i

San Antonio

r

•

}

.

DENVER

Stevens

w/x

.

CHICAGO 4, ILLINOIS.

.

V.

;

.

*"

,

We

208 SOUTH IiA SALLE ST.

Sanford

Goodall

Venetian

Columbus
i

Securities

DALLAS, TEXAS

Aircraft

Magnavox Common■

:;r,>

Aspinook

H.

Southwestern

RAUSCHER, PIERCE & CO.;

Garrett. Corporation y

.,

Berkshire Fine

X

Company

Utility Preferred Stocks"

on

us

Houston
X

J

Trade

Trading Markets

Interstate

TIXtii.ES
v

Board

Company

Galveston-Houston

Exchange

Firm

Corp. J.; ■>/•■
Spinning
Botany Worsted, Com. & Pfd.

X '

Southern Union Gas Common

Chicago

"January

Quoted

—

Pepper

I:.;Republic Insurance

X

I SINCE 19081

Lines

Alabama Mills*' '

Teletype BS 69

X

BoughtSold

Stove

U.

:

DALLAS

'•«'•/.

Teletype CG 257

1

i ■:,

Comm'l Tobacco
&

«.

So'western Pub. Serv% Com. & Pfd.;

Punta

Oil Tank

$5

OFFICE

Tel. HUB 1990

J. G. White & Company

Tokheim

about

.

{

.v:;. CHICAGO 4

v
■

....

Standard

share
share

request

on
•

..

Paper.
Alegre Sugar
Remington Arms Riley Stoker* •

•

per
per

SQUARE
BOSTON 9, MASS.
■

i

COMSTOCK & CO.
:

.

X

u :■

V;X:';X-:v\

.

Magazine Repeating Razor
Herrington \
:
'i i
Merchants .Distilling
•

OF THIS CORPORATION

POST

10

Ir'y'b

Common

f&ur-page-brochure,:
available

? •••

"V

-

Marmon

Mokan

now

• ■-> .; i

-

Industries*

American.

Moxie* :

rv

.

-

'

& Welding

Federal Machine

*■-*...»».

•

New

AS VICE PRESIDENT

/

.

:

,

G. PARSLY

■.J's. :}'

Tobacco, Pfd.

Deep Rock Oil..*
Drackett

,

-T

.

Co., Inc.

Buda Co....

Great

>

THE ELECTION OF

.

«

-$7.16
$16.34

.

LERNER & CO.

Long-Bell Lumber

Eng.

Glass, Com. &

.

,

Par^X-sXX!
v'-

V

.

S#bdJk>'..v'V;»

WE TAKE PLEASURE IN ANNOUNCING

Aetna Life:

>

jTyffjl" Circular Available 11

1

Post" War'

•,
.

.

Book Value

INDUSTRIAtS

Blair A

$10

.:: •

Net Quick

Outstanding

Suggest:

Low-Priced Steel Stock

Central Iron & Steel

.

Spring St.

| Wickwire Spencer

Aetna Standard

Ttletype BS 424

We

; "

MARKET

Whiting Corp.

Amer. Window

Building
MASS.

9,

4330

DISTRIBUTION

Waldorf Astoria

i

Bank

BOSTON

For

SECONDARY

NEW YORK 5

.

rv;

:

Shawmut

Pacific Coast

—

UNDERWRITERS

Available '

FIRST OF NEW YORK CORPORATION

Title Guarantee & Trust

L> United Piece

f

,

_

now

Pont, Homsey Co.

Wholesale Distributors
Middle West

Summary md Practical Study

du

;

Position Markets Maintained in

Purolator*

I

,

<

,

Scovill Mfg.*

I

|

..

Pittsburgh Railways

Philip Carey

|
1

.

^

General Machinery
Maine Central Pfd.

Appliances

Y,

Teletype NY 1-2419

Electrolux*

I

;

Midwest Refineries Pfd. & Com.

......

1924

New

WHitehall 4-3990 *

Douglas Shoe, Com. & Pfd.*
Eastern Corporation

I

Laurence Portland Cement

(

Parker

Trinity Place, New York 6, N. Y. ■"*

Telephone:

Brockway Motor*

I

INC...
Established

74

Pfds.

Christiana Securities Common
Colonial Stores Pfd. & Com.

-

'

Established 1914

American Hardware*

I

"B"

George R. Gooley & Co.

HOIXRSSESlkSSTER
,

and

x

Bird & Son

/ .!

v,

,

,

American Optical > ;

-

A11 Issues

;

/

(callable at 14 plus arrears)

par

f

x

':;X

(Arrears $3.75)

\

$10

300 payable Jan.

of

Dividend

Randolph

System

4068

:t

::

buy and sell

the

following:

^ Alma Lincoln Mining V

X-

Gulch

Cow

CO 537

Oil

x "

.Cresson, Consolidated Gold

UTILITIES
Gas

Amer.

A

Power

■

:Birmingham. Gas
Conn. Light & Power Com.
Cons. .Elec.

&

Gas

"}:-

'

Federal/Water

Southern

y

Arr. and
Com."

Util.

LX$2Pfd.*

Portland

Power

Com.

DALLAS BOND
''

Prior*-Pfd.,

Natural Gas:..

Union
■

..

year.

•

Mont

General

Jan. 31,

at

1

at the Palmer

p.m.,

.f".•"

X

r

l

■

Lab. "A"*

Instrument*

<

■-

International Detrola*

as

CLUB ELECTS DIRECTORS

Trust

Co.), and W. A. Jackson as directors for The conpng
Rogers Ray (Rauscher, Pierce & Co.), was reelected Secretary.

.

j.v-

.x,

\

The

retiring board consisted of Joe E^Gallihan, George T-.iHem^
mingson (Crummer & Co., Inc., of Texas), James F. Jacques (Dallas
Rupe & Son), and Judson S. James, Jr. (James, Stayard & Davis).
x

.

P. R.

-.

Rauscher, elected a governor of the Texas
recent Chicago convention, gave a report

group

of the IBA

the
of the meeting,
discussing addresses by Secretary of the Navy For'restal, Alfred P.
Sloan, Jr., Chairman of General Motors, and Lord Halifax, Ambassa¬

at

dor from Great Britain.

CHICAGO TRACTIONS
INSURANCE STOCKS
Circular

on

Request

NEW ORLEANS

wa^.

SECURITY TRADERS

Mk

■>■■■■1

while

rather**

phinful,

was

convalescing rapidly.
add

Members N.

jzo

REctor 2-8700

NY

Direct Wires to Chicago and Phila.
ENTERPRISE ' PHONES
Hartf'd 6111

Buff. 6024

Bos. 2100




It

Izzy

underwent

particularly

not

was

to the fireworks of New

Y. Security Dealers Assn

BROADWAY, NEW YORK 5

of-

an

operation

serious,

Year's Eve.

The

•

.

Jan.

National

Committee

of

the

National

to

i \

y-.<

■

Security

-

Traders

.

•

.

v

Association—Meeting,

31, at

1 p.m., Palmer House, Chicago.
Baltimore Security Traders Association—Annual
Boston

Security Traders

Chicago, Bond Traders
ing Officers, Jan. 30. "

Winter Dinner, Jan. 26.
Winter Dinner, Feb. 21.

Association—Annual
Club of—Annual Banquet and

Presentation of

Incom¬

•

Philadelphia Investment Traders Association—Annual Winter Dinner, Feb. 9.

"

'

x

on

• -

-Denver 2,.Colo.

jOO California Bldg.

•

;.

KEystone 3101

bank at the latest date held
hand and due from banks

ST. LOUIS,

$44,268,008,* compared
with
$46,238,641 „on Sept.: -30; .invest¬
ments in United Stated Govern¬
ment

securities

of

$178,103,283,

206,423.
Capital was unchanged
at'. $7,000,000,; while surplus: in¬
creased
to >'$10,000,000, and
un¬
against
1944.

■/

INVESTMENT

:v'

profits] werp, $1,148,851
$1,900,41$ on :Sept.' 30,
'
•nin'A
'• v

Available Oh Request

;

/i

request by writing to Mark

Merit,; in
ers

care

of

Corporation,

Schenley

Distill¬

350 Fifth

New York 1, N. Y.

Ave.

^

;

509

SECURITIES

OLIVE

STREET

X.

v

; '

:

"

Members St.jLoula

Stock Exchange:

Bernard Winkler Admittin
Bernard

Copies of this booklet may be had
upon

*

i.;''

St.Louis I,>lo.

it'-frr

Schenley Distillers Corporatior
have prepared an attractive book.let containing. the first - article!
iri the series they have been run¬

V*■").«'

/■•V1 --v
■'

compared with $145,983,580 three
months ago.
Loans and discounts
of $40,897,679 compared with $46,-

ning in the "Financial Chronicle.':
;

;

B. E. SIMPSON & CO.

ofv

been

down

Calendar of Club Events
•

h Kinney-Coastal

..

cash

which,

and has

expected that he would be

/.

United Gold Mines

spdctiVel^r;- with -$220,909,473 7and$244,14-3,490 - on V Sept. 30, v ^1944/

Christmas week due to the absence from the "Street" of Izzy Kings¬

& Alvis.

r;:;/"<■?

-

'

1944, total deposits
$244,089,650 and total assets
$268,004,597,. compared; x xe-

divided

ASSOCIATION

much less noise in the New Orleans Trading fraternity

bury of Kingsbury

'117.

i;

•

There
it

V

Elkton

of Dec* 31,

Of

John

Magnavox Corp.*
'<
Majestic Radio & Tel.*

Mallory*
Stromberg Carlson
Submarine Signal

Statement of Condition

"r. The Commercial National- Bank

r:

Empire Lee Mining X--

J:

& Trust Co. of New York reported

Texas, elected R. A. Underwood (R.-A.'Underwood & Co.), R; A. B.
Goodman (Schneider, Bernet & Hickman), -B. Frlloustoh;, .(Dallas

Treasurer.

Du'

on

-yx'.. I x>'

At its annual meeting on Dec. 13, the Dallas Bond Club,r Dallas,

•

Puget Sound. Pr. & Lt.
Queensboro Gas A Elec. Pfd.
Republic* NaturalvGas
Southwest

meeting

a

Chicago...:

-

.

Mass. Powerdt
Elec.

hold

will

House in

;'hzz:^-

Commercial National Gives

The National Committee of the National Security Traders Asso¬

,

Illinois Power Div.

Iowa

*

ciation

Pfd.

Derby Gas & Electric

SECURITY TRADERS ASSOCIATION

NATIONAL

& Wrnts.

Winkler

&

Co.,

1

Wall Street, New York City, merr
bers of the New York'Stock E>

change, will admit Ernest Stiassi
to -limited
as

partnership An the fin

of Jan. 11.

Volume

Number

161

Wc

•

Clark, Dodge & Co.

llic consolidation of

announce

61

FINANCIAL CHRONICLE

THE COMMERCIAL &

4348

61 WALL STREET, NEW

Abitibi Power & Paper Co.

YORK

Brown

IIARVEY FISK & SONS, INC.
SINCE 1863

>

JVe take pleasure

,

Fraser

/; ///// and ]

'-/"A \s'.\•'

.;V

has this
of January 2,

as

conducted

as a

/■

;

\'

' L'-'V- '"'•••'/ ' -".m

'•' ]. /

* •>.

-

Minnesota &
-

of

Noranda Mines
Price Bros. &

firm.

our

St. Lawrence

Clark, Dodge & Co.
January

Corp., Ltd.

Sun Life Assur. Co. of Canada

/, l<)45

Harvey Fisk & Sons
State and

Co., Ltd.

Quebec Pulp & Paper Corp.

partnership by the undersigned.

Bank of Montreal
Bank of Nova Scotia

Sce^iritie*

Deiilen in U. S. Government

Utilities

Ont. Paper Co.

V*'» 3

day become a member

1945. The business will be

Companies, Ltd.

International

MR. WILLIAM M. REX

R. W. PROCtTOR & CO.

Company

Electrolux

in announcing that

Municipal Bonds'

-

,

-

Canadian Bank of Commerce
Dominion Bank

MARTIN G. CRUNWALD

We

J- RYAN SMITH

RALPH W. PROCTOR

are

pleased to

that

announce

Imperial Bank

HARRISON M. IIAVERBECK

MR.

Provincial Bank

ARNOLb FELDMAN

Royal Bank
EDWARD F. WRICUTSMAN, Mgr.,

has become associated With' this firm

Municipal Dept.

V

mani^irfof our"''v

as

HART SMITH & CO

•

WILLIAM

52
*

40 WALL

:

STREET, NEW YORK

M

Investment Department

Bell

HAnover 2-9989

St., N. Y. 5

Teletype NY

1-395

Montreal

New York

Toronto

Bell Teletype-NY 1-1860

IIAiiovcr 2-2900

HETTLEMAN & CO.
Members New
Members New

Community Water Service

Tor\Stoc\ Exchange
Yorl(Curb Exchange

5'/is-6s 1946

4s

HAnover 2-7530

r

\

Issues

that
■it:

MR.

-

1

4%

LOUIS A. GIBBS

Incorporated
Members

1-2312
A.

...

,

■

Laird, Bissell & Meeds

-

;

Wc

pleased to announce the installation.

are

of
?

>,

,

'

.

t,

;

'

j

>

(I

Vt

-

\\

,

Members New York Stock Exchange
and Principal Commodity Exchanges

,,

.-/u '•

*y

(

,

cv.

Kansas

NEW YORK,

N. Y«

West Jackson Blvd.

:

A

u--

Wm,A.Tihis,Jr*V.-P.

Brown Bros. Harriman
Assets at New

Ward

Co.

&

Phone:

REetor

been placed on

1-2173 & 1-1288

Tele." NY

two years

Association

Members New York Security Dealers

1926

Z-o/uu

year,

service

Lieutenant
Reserve, is re¬

".

Higfis
consecutive

eigthth

high, records, for total
and deposits are reported

Brown

financial

statement

of

Mellon

Nat'lI Bank of Pittsburgh Marks ?5th Year

In recording

Bank

on

of

end

Co.,.. Inc.,

Jan. 1 the 75 years of its existence, the Mellon
points out that that period "closely

des¬

Vic e-Presi-

parallels that of the great Industrial Pittsburgh District it was
tined to serve."
The: institution had its beginnings on Jan. 1,

1870,

Thomas Mellon, who had retired from the bench,
founded the private banking firm of T. Mellon & Sons." In 1880 when
Thomas Mellon retired as head of A>
President.
Andrew
W,
Mellon
the firm he was succeeded by his
Judge

Andrew W. Mellon, who had
served the Bank under his father's
son,

served

as

he

when

President
retired

to

until
1921
accept the

City,,
den

M

t.

Marshal, and,

Security .Of¬

the

ficer"

A i

t

service,

consolidations,

Richard

mergers,

B.

rations, and large expansions re¬

quiring a broader financial ser¬
vice, the house of T. Mellon &
Sons, to provide these banking fa¬
cilities,-was incorporated in 1902
as the Mellon National Bank. The
national bank began

new

business

a
capital of $2,000,000 and
deposits of $8,491,947. The Bank's
first
board of directors, says
a1
sketch of its history, "were men

with

with

vision

and

sound

business

judgment -— representatives of
Pittsburgh's important
industry
and
lon

commerce.
was

Andrew W.

Mel¬

elected President, and his

brother, Richard B. Mellon, Vice-




:v:\

Eleven

poration

,months after its

/the ■T'Mellon

incor¬

National

a

t i

r-

earlier and

in

o n

of the

lie,

Grosse

Other

Prior to en-

i

n

g

v

-

compare

the
Mr.

September quarter.

Wm.

A.

..

..

asset items
follows with the fig¬
ures of Dec. 31, 1943, and Sept. 30,
1944:
Cash,
$38,129,179, against

Michigan.;,;
e r

$41,555,915 at the close

Titus, Jr.

important

deposits:,h$d; increased to

$20,981,377"'."'wftfle*'
were

its

resources

$24,342,^4^0 1924 the Bank

moved

intojttyrjiew home which

had been erected as; a monument
to

its

founder's

unfaltering, faith

in

the

future

of

the

30,

Pittsburgh
1944,

the

Bank's deposits amounted to $570,-

172,814

while;

$627,200,527.

V. were
/V '

resources

/

>

•

-

common

:rederic H. Hatch &; Co.
i

'

i/

.

Members
63

Wall

/

N.

.

Incorporated
Y.

i

"

New York 5, N. Y.

NY

1-897

HAYTI AN 1
/

CORP.

.

1

Quotations Upon Request

FAR It &

COL

Members
New
New

York

Stock

t

'

Exchange

York Cofjee <fe Sugar

•

Exchahge

,

DAP

.

58t,h

a.'.....-

..

•

..

\*rhir»h

W

.T

Dnnri

i<5 Pi'psident.

120 WALL

"TEL.

'

Security Dealers Ass'n

Street

Bell Teletype

«

"

On. June

Staley Co.

been

1

District.

E.

had

$36,597,482 and $33,073,616, re¬
prominently identified with spectively; United States Govern¬
security trade associations, having ment s e c u r i t i <e s, $59,515,927,
been a- director of the Security against $59,531,362 and $62,990,Traders Association of New York 324; State, municipal and other
and a governor of the New York public
seeuritidS/'' $33,703,939,
Security Dealers-Association. -In against $18,045,624 and $28,361,523.
addition, he was formerly a direc¬
tor of Claude Neon... Lights, Inc.,
Now W. J. Dunn & Co. **
and of the Scullirf Steel Company
;LOS
ANGELES,
CALIF.—Ef¬
of St. Louis. '
fective Jan. 1, 1945, the corporate
Mr; Titus' return to F. J. Young
name of Longan, Dunn & Philleo,
6 .Co., Inc.,' was previously re¬
621
South
Springs Street,
was
ported, in the: "Financial Chron- changed to W. J. Dunn & Co., of
Titus

Lion Match ;

1

A.

as

t

Bank's

General Tin Investment

Petroleum Heat & Power Co.

982,822, against $41,522,247 a year

Naval

fice."

brother,

American Maize Products Co.

preceding year

States

United

5 t

the

$13,585,802 on Sept 30, 1*44.
Loans and discounts were $38,-

Mellon,; succeeded him to this of¬

younger

of

close ;of

and

the

at

5, N. Y.

Teletype NY 1-955

Olcby 4-7060

Capital and surplus of $13,605,284 compared with $13,525,284 at

Provost

as

incorpo¬

sole owner until 1887 when

portfolio

r.

Titus: served,

Mellon,, became his equal partner.
At the turn of the century, with

Andrew

a

as

Secretary
of the
Treasury, 'of. the United States.
Richard Bv Mellon was President,
from 1921 until his death in 1933,
at which time his son, Richard K.

for six .years.

Members Neio.Yorlc Stock Exchange

1 Wall St., New York

30, 1944. Total assets

New'York

Pittsburgh

Gude, Winmill & Co.

amounted to
$180,612,121, compared with $167,555,691, on Dec. 31, 1943, vand
$176,766,919 on Sept. 30 last.: De¬
posits increased to $160,895,415
from $147,304,540 on Ded. 31; .1943,
and. $156,310,176 on Sept. 30 last.

Wall

Greendale •' Minerals;;
Mir Hudson River jBridge

Dec.

J.» Young

&
52
Street,

/

Bear

.....

Brothers Harriman &
Co., private bankers, in their yearby

F.

to

r

new

assets

as a

'.V;

the t

For

inactive duty after

in the U. S. Naval

turning

•{T

A'. Titus, Jr., who has

William

4%s/49

City & Pacific 4s/90

Lehigh Valley Coal Sales

GO.^Iil:||||

&

120 Broadway. New York

his

New' York 5, N. Y.'

No/folk & Southern 5s/41

/^January 2,1943

CHICAGO 4, ILL.

/'

MY,®

^vas

'

Chicago & North Western

,

,

Of F. J. Young t Go.

141

Established

i j.

120 BROADWAY

'

"

•

-

f'/>

,

wire to

direct private

a

-

§|§:;|f KNEE LANK

guidance

,/

Y-. Security Dealers Ass'n

N.

Bell Teletype NY 1-897

:

when

v

Frederic H. Hatch & Co.
this firm

63 Wall Street

Teletype: NY

._.,

'National

Consols

"

-

.•

.....

..

Securities Co. of N. Y.,

•-/./:

that

announce

has been admitted to general partnership in

New York 5, N. Y.

Telephone: COrtlandt 7-4550
1

>■

jthem in charge, of their

Department'

120 Broadway,

'

'

Peoples Gas (N. J.) 5Y2s 1960

We-are pleased to

v

•Trading

SV^s '51

Minneapolis & St. Louis Ry.

FRANK YJ CANNON
is now associated with

1948

Eastern Minnesota Pr.

J. W. GOULD & CO.
announce

/

East Coast;Public Service

*

NEW YORK 5, N.Y.

52 WALL STREET

ST:, NEW YORK

HANOVER

2-961^

:

Teletype N. Y- 1-2123} V
L
i

THE COMMERCIAL & FINANCIAL;CHRONICLE

C2

Thursday, January 4, 1945

PUBLIC UTIIITY STOCKS
We maintain an active market in• the stocks

the facilities of our direct
^

private wire

Pacific Coast

Corporation

Securities

Common Stock

system are especially equipped to
in

trade

where/

those markets
offices

various

our

■

located.

y

:

Resistoflex

of

public utility companies and through

many

are

.

..

Executed

y

on

.

Pacific Coast Exchanges

^

Herrick.Waddell & Co., Inc.

Paine, Webber, Jackson & Curtis
ESTABLISHED

Orders

Prospectus, upon request

,•

55 LIBERTY

1879

STREET/NEW YORK 5, N

Schwabacher. & Got

Y.

Members
New York Stock Exchange

New

York Curb Exchange

(Associate)
Trade

Chicago Board, of

Public

Utility Securities

The Securities Salesman'sCoiner
.1945 Should Be

Long Island Lighting Recap Plan
oc.mpany,

I>oth parent company and

or g preferred dividends;
of

subsidiaries'have had difficulties maintain¬
the parent company has an accumulation

$45 on its 7% preferred;*^
County preferred has $6; state business, and suggesting a
Queens Borough $42; and Nassau recapitalization oh the usual 1stock basis. (The contention thai
& Suffolk $65.
Long Island Lighting has made it is interstate is apparently basec
on'the fact that it supplies power
rn paj'ments since 1938, although
to : aviation or other
c- vidend requirements were subcompanies
f^antially earned in recent years, which do an interstate business.)
because the Public Service Com¬ The SEC' on Nov. 23 began pro¬
agaipst E. L. Phillips
mission has required the com¬ ceedings
pany to charge off certain "in- (Chairman of the Board) and sev¬
eral investment companies—Em¬
home appropriations," largely to
iretire securities. Share earnings pire Power Corp., Eastern Sea¬
fori the preferred stock were re¬ board Securities Corp., Lauridel
ported at $4.21 for the 12 months Corp. and Delaware Olmstead Co
fmded Sept. 30; but would' have —to determine whether they ex¬
been nearly double that amount ercise control over Long Island
$1 figured before the special ap- Lighting and are subject to reg
istration under the Holding Com
j|.ropriations. ■
f
t
On Feb. 11, 1944, a petition was pany Act. A hearing was sched¬
over

Jfings

If there is

number

Ifyted with the N. Y. Public Serv¬
ice Commission proposing1 to
down

write

the

capital

or

par

uled for Dec. 27.
:

[ Meanwhile, as noted above, the

proceeded to put its plan
effect, without awaiting the
decision of the SEC as to its jur¬
into

'\;-hen

isdiction

trade

determination

final

a

is

to .depreciation reserve,

as

lender the plan the 7% and 6%
preferred stocks would be reduced
f o $60 par value by over-stamping,

modification of
plan which it might wish to

the

make.

or-any

When the

§EC discoverec

this, it quickly filed a complain;
with the U. S. District Court, anc

inunction

issued
by Judge Kennedy.
After one
jl Lough the arrears would remain day's trading in the new securi¬
unchanged. As partial compen¬ ties the N. Y. Curb Exchange or¬
sation, " preferred stockholders dered dealings suspended in the
would receive 1
share of new unew (as well- as the old) securi¬
.thus

reducing the dividend rates
io $4.20 and $3.60 respectively, al-

bommoh

for

each

of

share

pre¬

Common stockhold¬
ferred held.
ers would receive 1 share of new
fonmmon (po par, stated value $5)
each 12 shares of old stock.

Preferred
*

i

>53,800
nd

stockholders would own

shares

the

of

common,

new

stockholders

common

stockholders
v/ould thus have a majority vote.
The plan was approved by stock¬
holders on April 26 but approval
$150,000;

t>i

the

5

Public

Service

Commis-

temporary

ties.

was

On Dec. 21 the District Court

Changed its mind and denied the
SEC petition, but the Commission
immediately appealed to the U. S.
Circuit Court of Appeals and won
a
second temporary stay.
Hearings are now set for Jan. 8 in the

ones.

do

come

Other

/along they

businesses

some

who

has

not

was

announced

Recently.

lug in Philadelphia. Some of the
j referred stockholders, dissatis¬
fied with the plan, had filed a pe¬
tition Nov. 10 with the SEC, ask¬

ing

the

Commission

j urisdiction
si

holding

over

to

assume

the company as

company

of the lean years

understands

According to a press report, the
ban on dealings in all stocks of
the company also applies to overcounter transactions, the transfer
books having been closed pending

that

should

be

reason,

increasing public interest in investment and
the purchase of securities.
For those who have really worked and
put forth intelligent, constructive effort, the year 1944 seems to
havlrbeen generally one of the best years in profits and sales volume,
in a long, long time. Once again, public interest and confidence in
the securities markets has been manifesting itself.
A long period
when most of the public stood aloof from investment in securities
has now changed to a condition wherein an almost normal invest¬
ment demand for

securities is asserting

Since it is the easiest

itself.

thing in the world for

to let

us

up

next twelve months- will be months of continued and growing invest¬

activity

if

—

so',

why. not go

to

work' and

even

REAL RESULTS CAN BE ACHIEVED — ARE THE GOOD YEARS.
can build a better ^clientele / in one good year of investment

You

activity than in three

four fyears

of sub-normal business, such
When people are in a buying mood—
when they show an interest and have a desire for the product you
or

existed back in the- thirties.

19th
new

(the only day in which the
issues were traded on the

Curb) the 6% preferred closed at
68% and the common 8%, the
combined value to the holder of

77, a 4 point gain
high for the year. As-

old stock being
a new

Corp.
II

Year

disinterested.

to

Chicago

signs

new

Hold

seems

until

on

!

appear.

By WALTER WHYTE
The

New

Year

is

\

few

a

days old and I just realized
that I never told you about
what the market will do

1945.

Thoughtless

Should

have

for

of

me.

it

last

done

But the fact remains,
I'll probably be barred

week.

and

from the prophets' union for
this, I don't know.
1L■ V;

/ I've taken
tossed it

half dollar and

a

dozen

a

Heads it's up;
First I made it
I

made

times.

so

or

tails it's down.
toss. Then

one

it two out

Qf threes

Finally it became four out of
five. I practically came to a
conclusion when it rolled into

suming , that
the
plan
should
eventually be approved, the price
of 68% would (based on the $3.60
dividend rate) return a yield of
5.27%." If a downward readjust¬

1945 before

:

crack in the floor.

a

Interesting Developments
In Pittsburgh Railways /•
A lucid and

comprehensive

an

alysis of the interesting complexi-

that some further balance,, sheet
adjustments could be made to
eliminate part or all of the in¬
come appropriations and increase
the amount of net income

able for dividends.

avail¬

However, the

of

ties

the

Company
summation

Pittsburgh
system,
of

ments in the near

All Its

In

Plans

Branches

Prepared—Conference Invited
*

Guenther Law

131 Cedar Street
.

Boston

Chicago Philadelphia Satx. Francisco

am

with

all

of

and without

me

of whether

to

buy,

or

way

I don't fish.
*

I

••
*

❖

could write

thousand

future, has beer

words

(Continued

on

a

couple of

about
page

eco-

86)

prepared by the Research Depart¬
First of New York

of The

ment

Corporation, 70 Pine Street, Nev
York City.
in

booklet

UNUSUAL

Copies of this report
form,

are

available

CHANCE

request.

upon

New

York

Commission

also,

which makes it hazardous to pre¬

an
opportunity for
permanent position with
a
national financial pub¬
lication, which in addition
a

SINCE 1889

Headquarters For

Sextoblade Razors

a n

Experienced Statistician
capable of writing financial
articles and handling in¬
vestment
correspondence.
This is

Quality Cutlery
:

For An

would

doubtless retain jurisdiction

d

Cutlery .Repair¬

ing of Every Description.

to paying
adequate com¬
pensation, also shares prof¬
its with its employees,
State qv allocations when

NewYork6,N.Y.

Telephone COrtlandt 7'5060

idea

I

-i-

go fishing. Except it's
too cold for fishing. And any-*

s

develop¬

dict the outcome.

ADVERTISING

here

Railway?

including

possible

-I-

v

sell

an¬

If you

don't believe it I'll show you
the crack.
So

-

Incorporated

BROADWAY, NEW YORK 6, N. Y.

hangover—lots of things

in the wind but market

selling, THAT'S THE TIME TO GO OUT AND DO A JOB.
Building a clientele in the right; way, planning your way ahead,
doing a good job for your customers — that's the answer to what
can happen as far as success goes in 1945, for every securities sales¬
man in the business.
Intelligent,- constructive work can make-this
one of tthe best years we've had since 1936.
are

Albert Frank

Gilbert J. Postley & Co.

I

Says—

last

beat

although that is • important, / as ? we all know.
There is also "the
important matter of building a larger and more productive clientele.
THE YEARS WHEN THIS. CAN i BE ACCOMPLISHED — WHEN

as

Sacramento

Market still affected, by New

There is more; to it. than just increasing income,

yearjs records.

Blades.




of

,

outcome of the court

Debentures

Wire

any

and coast when the going gets good again, possibly this is as good
a time as any other to resolve not to do it.
Let us assume that the
ment

—

■

BarbaM

Walter Whyte

with

filled

A "black market" appears

doing inter-- and

Direct

subject to periods

are

only too
the salesman ?wno really' knows something about
past history, and has the correct outlook regarding his business,
takes advantage of the good years in order to make up for those
trying times which he has seen in the past, as well as those which
may come again in the future. 1
'
Now, we are once again turning the corner, into a year that
For

Santa

—

Tomorrow's Markets

Circuit Court.

Associated Gas & Elec.

29

make up for quite a

can

also

Francisco

f

studied' the. past, or who has lived through
in the pursuit of a livelihood in this industry,
well that good ; years don't last, indefinitely.

ment in income appropriations oc¬
proceedings
curs
(as seems likely in 1945)
to have
some earnings might be available
developed over-the-counter (ac¬
for additional payments against,
Amendments to its Certificates of cording to the daily sheets of the
the substantial arrears,
y
V
Incorporation and on the 19th the National Quotation Bureau) al¬
However, if the SEC is upheld
}k ew York Curb Exchange ad¬ though there is apparently little,
by the courts and assumes juris¬
mitted to unlisted trading the new if any, trading.
it
seems
likely
that
On Dec. 18, the last day of diction,
preferred stocks and the new
(based on.; previous plans, ap¬
foommon stock (the old securities trading in the old stocks, the 7%
Lamg removed).
preferred closed at 80, the 6% at proved by the Commission) any
new plan might be on a
1-stock
Meanwhile, however, trouble 73 (both up about 5 points), and
basis. In that event, it is possible
for the company had been brew- the
common
at
7/s ths. On the

until
On Dec. 16, following
this approval, the company filed

j;:on
'

preferred

a:

of slow

Anyone

company

Value of each class of stock, to
create a reserve to be available

years

NY 1-928

Fresno

one

good

Teletype

<

Monterey.— Oakland

of extraordinary dullness and extremes of unusual activity r—. but
few otner vocations otter the salesman the opportunity to make
up
for lost .time in a few good years as does the securities business.

■

'

San

characteristic of the investment securities business
that makes it stand apart from many other lines of endeavor, it is
that when

4

Private wires to Principal
Offices

a

By JO to BUTTON

I
'

„.

New York S, N; Y.

COrtlandt 7-4150

Year of Opportunity
For Securities Salesman,

r

Long Island Lighting Company is- both an operating and holding
controlling Kings County Lighting and Queens Borough
Gas & Electric Co., while the latter in turn controls Long Beach Gas
iod Nassau & Suffolk Lighting Co.
Being somewhat overcapitalized,

14 Wall Street

questing

WECK CUTLERY. Inc.
138 Fulton St.
CO. 7-1176

:

45 Nassau St.
RE. 2-9192

an

Address 5-C,

re -

appointment.

Postoffwe Box
26, Trinity Station, New York

City.

Volume

Number

161

'COMMERCIAL

4348

Great Northern

Railway

■

i J.

•:

-

Teletype:

NY

61

to

considered

and
we

aras.-

net

that

that

possible

the NASD in protection of securities markets
; •
i
Mr. Thayer's argument, we believe, was a particularly
masterful one.
It highlighted the distinctions between overthe-counter trading and trading in listed securities.
Its
explanation of the functions of the over-the-counter market
is a fine example of a succinct, clear and comprehensive
statement,. He "laid emphasis on secondary distribution,' a

million

generally.

retired

frading market that stretches over the entire country, main¬
tenance of a

dealer market, the .merchandising of securities

(finding of buyers and sellers to take the securities bid and
offered) and sales and customer relationships.
We believe this part of his argument dealing with the
subject of over-the-counter functions should be in possession
of every dealer and broker in securities.
Where attempts are made to encroach upon the overthe-counter market, by extending to any of its securities the

"privileges" of "unlisted trading," these, in our opinion,
"should be some of the guides in determining the issues:,
(a) the general fitness of the particular securities involved
for auction trading, this to include amongst other consider¬
ations, those „of extent of distribution, size of the issue, the
meeting of statutory requirements; (b) the desire of the
issuer of the security.
If the issuer of the security prefers
the

that

be

same

traded

in

that should

over-the-counter

important bearing upon the determination; .(c). the
and in many instances, the contrast of the
services rendered by the respective markets should be con¬
have

an

"entire

nature

stantly borne in mind as well as the fitness
securities for the appropriate markets.
We

cursions

of the particular

deeply concerned in, and opposed to, the in¬
attempting to circumscribe over-the-counter activ¬

ities.

real danger to the

retail market.
We

believe

that

counter dealers and

unless

retailers

and

over-the-

brokers generally adopt some pro-

which will continue to segregate the
markets and keep their respective functions indepen¬
tective program

dent, the time will come when there will be no overthe-counter market in the true sense and small business
will
of

in

no

longer be able to raise capital through the sale 4
The approach to such a condition, the

securities.

direction towards it in which we seem to be heading, in :
■t our opinion, constitutes a disservice and is against the
;

i

public interest.

tt

•

v

.

,

General As

"

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

120

should con¬

Broadway, New York 5, N. Y.
So.

231.

1

will

earnings

been

influence

Congenital bears on railroad se¬
that it

contended

impossible

was

prices in the
face of declining earnings.
What
to

advancing

have

they failed to take into consider¬
ation was that by and large rail¬
road securities had never reflect¬
the

ed

they

peak earnings at the time

improvement and

debt- retirement.

of

In any event, in

lower

road.

scored

in

securities

have

to

prograhir of

'the

with

rapid financial
face

net-left

sufficient

was

continue

the

and

with earnings declining

even

there

reported,

being

were

that

earnings rail¬
the past year

almost

unbelievable

price advances. From the end of
1943 to the close on December 29,
Dow-Jones

the

1944

of

average

rail stocks rose 44% to 48.30, sec¬
ond

grade rail bonds rose more
than 35% to 91.44 and defaulted
rail bonds rose more than 35% to
advances

Individual

45.43.

were

In the
same period the Dow-Jones indus¬
trial average advanced less than
12%, to a close on Dec. 29 of
much

spectacular.

more

151.93.

those
been

is gratifying to
for many years have

who

urging

more realistic in¬
speculative attitude

a

vestment and

securities.

rail

There is

■

little

profit, however, in looking
back and dwelling on the past.
The important question now is,
Where -do we go from here?
To
that

extent

Influenced

markets

temporarily

will

by

most

high. ' For
maximum tax

has

Boston Terminal

1944.

in

felt

been

not

should

cut

more

any

heavily into 1945 net.
Increased
wages have also been fully re¬
flected

results.

1944

in

the

At

; 3/is 1947
A

Bond with

appreciation
possibilities via—reorgani¬
zation

back

and

interest.

present time there appears to be
pretty good chance that another
be request¬
ed.
' Whether or not it wJl be
a

increase in wages will

granted depends largely
Government

eral

In

in¬

any

earnings influence.for
come.
If they dre

an

months to

some

finally granted they will come
mainly from taxes, and not out of
net
earnings.
On this basis it
conservative

seems

1945

minimum

around
same

in

net

(about

with

1941)

estimate

earnings

million

$500

as

to

a

at

the

strong

possibility that they may amount
between

to

million.

$650 million and $675

'

it

virtually certain
that 1945 earnings will remain at
As

appears

high levels it is reasonable to as¬
that debt retirement and fi¬

sume

nancial

strengthening
this

To

continue.

also

will

will

be

charge re¬
ductions through debt refunding.
These
rant

would

factors

a

more

of

uation

Established

1921

115
New

'

Broadway
6, N. Y.

York

alone

Partner in

Clark, Dodge & Co., 61 Wall
Street, New York City, members
Exchange,

of the New York Stock
that

announce

has become

a

William

M.

Rex

member of the firm.

Mr. Rex has been associated with

Clark, Dodge
since
December,
1935, as manager of the bond de¬
partment. fFor thirteen years prior
to' that

he

with

was

the

Conti¬

nental Illinois

Co. of Chicago and
predecessor organization.
y

its

Mr. Rex's admission to partner¬

ship
the

was

previously

"Financial

of

*

cember 21.

in

reported

Chronicle"

De¬
'

•

war¬

liberal market eval¬

unchanged earnings

an

Finally, with finances and
debt structures so vastly improved
is

a

Slark, Dodge & Go.

Attractive Power Issue

level.

there

1

:

Win. Rex

added

influence of fixed

the

I

Telephone
REctor 2-0166

that may be granted will

be

not

R. F. GLADWIN & CO.

gen¬

on

policies.

labor

however,

event,

any

creases

every

liberal dividend

prospect of more
policies this year.

Common stock of the Arkansas
Missouri Power
tractive

Co

situation

offers

memorandum

prepared

Wall

Torrey,

1

an

according

&

at¬

to

Railroad Stocks Should

Bampton &
New York

Rust,
City,

members of the New York

Street,

Stock

Pflugfelder,

unanswerable.
That
fundamentals will justify further

61

substantial

enhancement,
particularly in the stock group, is,

however,

McGinnis

from Cohu & Torrey upon requeci.

Exchange, have prepared reprints

question

Aside

is

price

not

from

ment that has

and

which

reflected ;

open

the

to

credit

question.
improve¬

already taken place,

has

been

pricewise

pretty fully
by
second

Broadway,

of

address

an

by

entitled

Should

Stocks

Patrick B.
"Railroad

Follow

Railroad

Bonds."

Copies may be had from
Pflugfelder,
Bampton
&
Rust
upon written request.

Boston & New Yoirk
Air Line R. R.
r::

purchase, ALL

1

■:

is, 1955

,

'

:

Bought—Sold—Quoted

SEABOARD AIR LINE

POTENTIALITIES i

Circular Upon Request

Underlying Bonds & Certificates

Mclaughlin, baird & reuss
Members New York Stock Exchange

ONE WALL STREET
TEL.

HANOVER

2-1355




TELETYPE NY

Adams & Peck
I. h. rothchild &

NEW YORK 5
1-1310

Member

of

National

CO.

Association

of Securities Dealers,- Inc.

;

.

52

specialists in rails

wall

street

HAnover 2-9072

n. y. c.

a

by Cohu

New
York City, members of the New
York Stock Exchange.
Copies of
this i memorandum may
be • had

Follow Railroad Bonds

trend and duration of the war the

We wish to

1975

Chicago 4, III.

St.,

remain

part the

be

the

LaSaiie

tinue, even witli highly favorable
war
developments, through most,
if not all, of 1945.
If business remains high, rail

taxes

MOP"

SPECULATIVE

at

1944,

curities have for more than a year

the

>

whh

On tie basis of present

business.

the

billion.

towards

these attempts pose a

faced

indications this period

have

may

still

^are

number of months of peak

a

$500

The past record

are

We believe

debt

of

railroads
least

as

much

as

Ernst&Co.

grade bonds but not by stocks, the

which would Unless there is a change in the
bring the aggregate to below $9 law, which is considered unlikely,

'

:

compared

million,

$667

by

made; by

4

that

estimated

has

amounted to approxi¬

income

mately

eouiiutac.1*^-

interstate

lne

!

Commission

its attitude, is being espoused by itl j with $874 million in the preced¬
ing year and the;peak of more
representatives* Until a division of duties is created
than* $900 million realized in 1942. •
which will make it impossible for the Commission to act
Dividends continued modest in re¬
as a judge in a matter to which it is in effect a party;
lation to earnings, with most of
available income again diverted
there can be no guarantee of just and equitable results.
to the reduction of debt.
It is
At this time we wish to commend the excellent effort
cause

I

freight ton miles, passenger miles, and gross revenues. Net profits,
by month behind the levels of a
earlier.
Taxes- took a mounting toll, material costs continued
on ;the upgrade, and the fyll impact of the wage increases was felt.
Nevertheless, the net results were highly satisfactory by any standyear

Again, there is the unfortunate condition wherein fy
Commission is compelled to pass judgment on a >4

.

the

;

in

Bought—Sold—Quoted

however,;ran consistently month

the pending

proceedings.
For the Commission;' independently to prepare studies
present them as part of the evidence to be considered,
believe to be wholly unjust.. •
:
•/

oe

(When Issued Securities)

of

present before the Commission, as part of the data

to

care

1-310

another record year in point

industry has closed

railroad

:

Railway Co.

New York 6
Fell Teletype—NY

4-4933

Railroad Securities
The

(Continued from page 59)

.

Seaboard

Exchange

Stock

Broadway

Telephone—DIgby

Unlisted Trading Privileges 4
■

York

hew

Members

-/A•'

1-911

Preferred

&

request

WRITTEN

on

4 pflugfelder, bampton & rust

New York 5, N* Y.

Telephone: IIAnover 2-79.00

.

Common

by

gg

^ ' Mevibers New York'..Stack ■Exchange

\

49 Wall Street

Arden Farms

Patrick B. McGinnis

"

V, >-;•

Copies

Vilas &l Hickey

Address

An

-'"A"''

■

Letter Available to Brokers and Dealers

63

Railroad Stocks Shauld Follow Railroad Bonds

c

Preferred

FINANCIAL CHRONICLE

&

63 Wall
5

tele. NY 1-1293

Street, New York 5

BOwling Green 9-8120
Boston

Philadelphia

Tele. NY 1-724
Hartford

THE COMMERCIAL & FINANCIAL CHRONICLE

64

Thursday,January4, 1945

SPECIALISTS
•in

ReaI Estate Securities
REAL ESTATE

1929

Since

SECURITIES

need

Seligman, Lubetkin & Co.

Primary Markets in:

Incorporated

Hotel St. George,
Park Central
(870

New

Members

4V

Association

York Security Dealers

■

HAnover 2-2100

Broad Street, New York 4

41

Hotel, 4Ws

the

7th Avenue)

-

Many obstacles,stand in the
comes

Real Estate Securities

Broadway-Barclay 2's

Fixed

Leasehold

First

The

SHASKAN & CO.

consequent

must

know

of a dozen conditions

one

loss

to

can

client and invest¬

firm.

Cumulative

&

Income

Familiarity with Blue Sky Jaws is essentia 1-r thorough under-

Bonds

standing of the technique of stabilizing—awareness of State

$6,0Q0,000

original

issue

the

>pn

25-story

General

and Federal laws

58th Streets, New York

Dlgby 4-4950

City, has been reduced to $3,232,000.

.

1933, is

The

Morgan Stanley Partner

1948.

the present time, unpaid accumu¬
lations total $6.60 for each $1,000
bond. The amount of interest pay¬

1, 1945, totals $30
contingent).

able Feb.

uation,

1944

sufficient

to

Ac¬

clean

matters is

vital.

Company, with

years

Secondary distributions,

of experience in Special

help

can

of

and

ex¬

revoca¬

can

provide

you

avoid pitfalls

opportunity for successful profitable

every

distributions.

Ground rent now pay¬
able in the amwmt of $260,000 an¬
nually will toe reduced $50,000 as
of Oct. 31, 1945. ^TSifs reduction

our

be

Shields &
and

registration could be the

security firm's license. Obviously, experienced knowl¬

edge of these

of the bonded debt of about

cess

we

to

valuation

$6,975,000 is considerably in

analysis of this sit¬
believe the total pay¬
ment
per
$1,000 bond will be
$36.60 as we expect earnings for
cording to

assessed

tion of a

$3,100,000.

($20

and ,$10

fixed

The

big chapter in itself. The penalty for distribution of

a

"control" securities without

operation of the $100,000 primary annual sinking fund for 1944 will
in all probability result in a further reduction to about $3,100,000,
or
to about 50% of the original^
above the $100,000 primary sink¬
issue.
These bonds pay 4% fixed in¬ ing fund might also be available.
The property has the benefit of
terest plus contingent cumulative
interest payable Feb. 1 each year the General Motors Corp; lease
at the rate of 2% per annum. At covering 13 floors and running to

NY 1-953

governing the sale of securities—Exchange

regulations—control. "Control," under the Securities Act of

Motors

Building, having a net rentable area of 473,435 square feet, occuping
the entire block bounded by Broadway, Eighth Avenue, 57th and

Exchange
York Curb Exchange

Members New York Stock

Bell Teletype

of the uninitiated when it

Y

New York City)

(General Motors Building,

Hotel, 4's

40 EXCHANGE PL.,N.Y.

way

Secondary distributions. You

offering with

upset an

Attractively Priced for Yield & Appreciation

Members New

or

BROADWAY MOTORS BUILDING CORP.

London Terrace, 3's
Beacon

Special

guide books intimately. Any

ment

Chanin Bldg., 4's

to

Will have

favorable effect

a

on

Shields & Company

the

total annual amount available for

sinking fund.

up

the unpaid

accumulation of $6.60.
The earnings for 1944 would only
have to exceed 1943 by about $18,-

appear

-

NEW YORK

it would

CHICAGO

BOSTON

that these securities around

current

tne

■:

of conditions

In view

•

market

under-

are

00Q in order that this payment price$ and are worth considera¬
can be made/
We belie,ve it quite tion 6n a yield and appreciation
'.M:.
possible that an additional amount basis.'"
,

Walter W. Wilson

W.

Walter

Wilson

Mr. Wilson became asso¬

ciated with Morgan Stanley" &

in June,

He is

1937.

Co.
graduate

a

of the University of Pennsylvania
and the School of Business Ad¬
ministration

sity.

Univer¬

Harvard

at

Formerly he

associated

was

with the Continental-Illinois Na¬
tional

Bank

&

Co.

Trust

in

Chicago.
Reference

these

new

to

was

of

previously made

"Financial

the

admission

partners to the Morgan

Stanley firm
in

the

Chronicle"

of

Nov. 30.

The

new year gets off to a fly¬
ing start in the new issue munici¬
pal
market, with the
opening
weeks scheduled to be punctuated
with a degree of activity not wit¬
nessed in quite a spell.
Highlight
of the business in prospect is the
New York City offering of be¬

tween

$60,000,000 and $70,000,000
bonds, bids on which will be
opened Jan. 16. :
This will be the city's second

in the market since
January, 1942.
On the previous
occasion, in August of 1944, the
municipality awarded $13,740,000
appearance

Idlewild Airport

bonds as l3As to
syndicate headed by the Chase
National Bank of New York City.
a

The

bonds, due serially from 1945
inclusive, were re-offered
by the underwriters from a yield
of 0.40% to a dollar price of 99.50.

to

Gannon Trading-Mgr.
For J. W. Gould Gor
Frank Y. Cannon is

now

for

associ¬

some

years

for

<1933

and

later

President and
of

Board

York:
tion.

served
a

member of the

Governors

Security

Vice-

as

of the

New

Associa¬

Dealers

'■:

-

©

of projects

be¬

Thus none

of the fund is intended for proj¬
ects and improvements included

sue

ciation of New York from 1931 to

completion

fore the war began.

Unlisted

Asso¬

the

which had been in progress

partner in the firm of J. K. Rice,
Jr. & Co. He was President of the
a

Dealers

forthcoming

the

McGoldrick, will be used to pay

in

Security

of

large-scale financing, according
to City Comptroller Joseph D.

■

was

1974

Proceeds

ated with J. W. Gould & Co., 120
Broadway, New York City, in
charge of their trading depart¬
ment.
y;- ' • ''
: '■
:.y.
Mr. Cannon

Special to The Financial Chronicle)

lker Jr. is
;

business

te
t

Street.
was

a

MASS.

—

Guy

engaging in
from

a

offices

the

of post¬

construction. The

war

program

bond is¬

city's

in question will be in serial

form, the maturity
from 2 to 40 years.

being
Average life
range

of the loan will be 15 years.

The

New

York

City

offering,

which

will constitute the largest
piece of municipal financing since
Pearl Harbor, will be preceded by

53

Mr. Walker in the

partner

in

lker & Co..




G.

amount and of equal

ket interest,

*

general mar¬

A

v

The initial transaction

W.

securiat

units

W.

was com¬

a

maturity

The

issue

consists

to

of

a

of Edmonton/Alberta
helped to maintain the tempo of
activity which has characterized
the Canadian municipal market in

for

today

are

State

various

Other

water

relatively

the

short-

■

000

Loup River Public Power Dis¬
of

Eastern Divi¬
sion Electric Revenue bonds, pro¬
ceeds of which will be applied to
the
redemption
of
an
equal
amount
of
outstanding district
Nebraska,

notes.

The bonds, bids on which will
be

considered Jan.

9, will

ma¬

ture semi-annually from July 1,
1945 to Jan. 1,1951, and contain

of

the

electric

utility systems in

foregoing

the

To

.j-l

Triborough Bridge Cases
Court

on

•

of

::

firm

of

P.

A.

Harvey* G. King, who have

been associated for many years as

general

partners.

The

firm

was

originally formed in 1926 and ex¬
pects again to furnish the type of
unlisted

brokerage

service

ren¬

dered in the past, with special at¬
tention being given to the execu¬
of

orders

in

bonds

common

new

and

issues

of

preferred

stocks.

,

&

Co.; 52 Wall St.,

York City, members of the
York Stock Exchange, an¬

nounce

that Arnold Feldman has

...

i
re¬

Agencies, are .political

sub-divisions and that

the

Montgomery & Co. at 150 Broad¬
way, New York City, has been
made by Austin P. Montgomery

New

Supreme

Jan;;3i refused the

their bonds

exempt from
laws. Imme¬
diately after the court's action
was announced, over-the-counter
quotations on bonds of the aboveare,
accordingly,
Federal income ta#

Announcement of the re-estab-

Hettleman

ity and the Triborough Bridge
Authority and, inferentially, simi¬
other

Montgomery Go.

lishment

New

quest of the U.i Sn Solicitor Gen¬
eral for review/by rthe court of
lower court rulings 'which held
that the Port of New York Author¬

lar

v

Willi Hetfleman A Go.

Supreme Court Refuses
Port Author ityUnited* v States

Toll

Arnold-Feldman Now

Review

The

California

Formed In New York

and

*$500,000

.....

the

New

$60,000,000 to

day;

Jan. 22.

U. S.

A. P.

Lebanon, Pa./

15th;

Union City, N. J., on
the
18th; and the
$1,500,000
Pittsburgh, Pa., refunding on

The next substantial deal on the

trict

the

and

corporate

$716,000

sive.;.;::-:;
of the $15,600,-

on

case

Bridge Authority.

tion

in

Charlottesville, Va., on the 17th;

maturity range
being from 1946 to 1951 inclu¬

consists

;'

-

now

$70,000,000 on the 16th; $593,000
St. Clair Shores, Mich., also on

dated paper, the

calendar

/

loans

material

York City item of

sinking

mission

and

same

include $1,500,000

$2,214,000 Roch¬
ester, N. Y., issue.
The latter
of

for

July 1 next.

prospect for the rest of January

funds and the
consists

of

been called

have

on

Control District.

sales scheduled
the New York

portfolio offering of $5,676,000 local municipals now
by

Purpose of this
to provide for the

day of the Miami
deal, Harris County, Texas, will
open bids on an offering of $9,050,000 bonds for new construc¬
tion, ,of which $3,800,000 will be
for account of the county's Flood

State

held

which

On the

months, having sold ion
Wednesday an issue of $3,500,p00
refunding bonds. Not having been
registered with the Securities and
Exchange Commission, interest in
the offering was confined exclu¬
sively to Canadian dealers.

an optional
provision. yesterday
(Wednesday),
when the City of Roanoke, Va.,
The scheduled passing from pri¬
sold $1,585,000 Water bonds to a
vate ownership of the Omaha util¬
group headed by Shields & Co.,ity system, incidentally, will com¬
New. York
City. The bankers
named a combination of interest plete municipal acquisition of all!

bid figured

1940

payment

recent

sub¬

also the

an

borrowing was
redemption of $7,623,000 33/4s

The City

the

Associates.

was

obligations of the
Pennsylvania Turnpike Commis¬
sion, Delaware River Bridge Com¬

previously in the market

was

and

'r/v;'v

Among

on

of
$7,600,000 refundings to the
Chase National Bank of New York

$570,000 maturing in 1975 and op¬
tional Jan. 1, 1965, at 102 and in¬
terest.

10

Oct. 26, last,, when it disposed

on

1974 inclusive, and a block of

pleted

rates and the accepted

city

non-callables7 maturing from 1946
to

consider bids Jan.

issue of $10,000,000 water revenue
and revenue refunding bonds. The

$1,OR?,000

advanced

with respect to

will

dollar
price of 96.25 for the 1975 series
one-year

on

9, having requested bids

issue of $1,000,000 road bonds.

The next important item on the
January list will be contributed
by the City of Miami, Fla., which

to the city of
Re-offering was %iade
yield basis of 0.30% for the

1.3629%.
from

stantially. This

an

interest cost

net

a

several other issues of substantial

1. W. Walker in Boston
JOSTON,

mentioned

on

Jan.

Municipal News & Notes

along

who,

The State of West Vir¬

ginia will also be in the market

with John Story Wright and Her-,
jpert S. Hall, was admitted to
general partnership
in Morgan
Stanley & Co., Two Wall Street,
Hew York City, members of the
New York Stock Exchange, on

Jan. 1.

Nebraska.

'

■

joined their organization as Man¬
ager of their Investment Depart¬
ment.
Mr.
Feldman for many
years

firm

has been head of his

own

and

has been in the invest¬
ment business for nearly 25 years.

Kendrick Taylor With
Journal of Commerce
Kendrick W. Taylor has joined
advertising staff of the New
York "Journal of Commerce" ef¬
fective Jan. 2nd. Mr. Taylor Will
cover
the industrial advertising
the

field.

He

was

previously with Al¬
Law, Inc.

bert Frank-Guenther

65

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4348

161 "

Volume

NOTE—From time to time, in this space,
there will appear an

•••'v..,

i

i

v.-.

One

hundred

Stock

Exchange

/•;

•,

-

and

also traded

are

Exchange between the hours of 10

'•

VV"'"''•• ••»*'•

,.-W

...

forty-eight stocks traded

on

-

of interest to our fellow Americans.
This is number seventy of a series.

'v. V-'V

> •«*

•;*

a. m.

and 5:30

(E.W.T.)

p. m.

Post Bellum!

A Hit of these stocks is available upon request

Quotations and executions promptly handled over our Direct Private

Wire

This recorder has received

Kaiser & Co.

of

STREET

BROAD

SAN

FRANCISCO STOCK

TEL.

WHI

BUILDING

RU5S

copy

a

by the chair¬

of the board of this company,

man
1SDD

EXCHANGE

Schenley Distillers Corporation, to

SAN FRAN CIS C □ 4

NEWYORK 4
V

letter addressed

a

,

NEW YORK STOCK EXCHANGE

25

CORP., NEW YORK

SCHENLEY DISTILLERS

the New York

the San Francisco Stock

on

MEMBERS

we hope

article which

will be

SAN FRANCISCO TRADING IN NEW YORK STOCKS

TEL.

3-9015

DO

its

077 3

in

vice-president

president,

-

of production and vicepresident in charge of sales. His

charge

letter states in part;
*

*

"Our Reporter on Governments"
By JOHN

Despite

deficit

for

T.

INVESTMENT

CHIPPENDALE, JR.
calendar

the

.

.

X:

has

over

the

markets.

money

...

Private Wires

it seems reasonable
the; action of the Government bond market in
1944, that interest rates will remain as they are, of go to somewhat
lower levels.
It may be that the Treasury, by the use of the
0.90% Notes and the 1V4% Notes, is preparing the market for a
change in the rate of financing the war, which is entirely within
their power.
Also the Secretary of the Treasury has indicated
that the use of short-term obligations with low rates is suitable to

Home Office Atlanta

•

•

their needs.

.

.

junior officer in

changes in United States Government bonds, during the

Price

year, were as

follows:

-

Closing Bid Price

Price Changes

12-31-44 in 32nds

in 32nds

103.12

»

Closing Bid Price

12-31-43 in 32nds

Y

101.18
101.28
103.25
103.13
103.18
109.18

—1.26
—1.17
—2.14
—1.26
—1.30
—2.7

"9-15-1945-47-,—..

23/4%

3M»

*6-15-19461-49

414

"10-15-1947-52

103.13
106.7
105.7
105.16
111.25

2

"12-15-1947//

104.4

• 12-15-1945

•2Va

"*3-15-1946.-56

3*4

v?6-15-1946-48

3

'

:

2%

106.20

6-15-1948—
"12-15-1948-50

2

9-15-1949-51———

2

101.8

12-15-1949-51

2

"12-15-1949-51—-^
**12-15-1949-53

Vb
2\'i

110.4
106.17

—

100.30

3-15-1950-52—

2

100.20

9-15-1950-52—

2

,■

■

"9-15-1951-55

3

——

"12-15-1951-53
12-15-1951-55
3-15-1952-54
6-15-1952-54-

2'a
2
2 V*'
"

2''"

-

•

Issued 6th War Loan
"6-15-1953-55———
104.21

2

100.10
105.24

100.15

"6-15-1954-56

2V4'
2*4
2%

2 Ma

2 Mi
2 Mi

•'

2Ma

2Ms
2 Ma

market,

R.

active

in

^

+0.11
+0.11
+ 0.10
+0.12
+0.10

during week were rather moderate in the
although a good demand was noted for the-

brokers

dealers

and

for

purchasing

or

carrying

Fraternity" have been adding to their holdings of these securv

?

,

/.

>,

reported that there was a substantial order in the market
for the 2*%% due 6-15-51/54, with a large trade in this issue having
been consummated near the end of last week. +:

i FEDERAL'S HOLDINGS AT NEW HIGH

.

1944 closed with the holdings of Government securities
by the Federal Reserve System at an all time peak of $19,064,404,000.
This, represented an increase of $7,449,515,000, or 65%, over the
figures reported at the end of last year. The largest gain took place
in the system's holdings of bills, which1 went from $6,906,175,000 at
the close of 1943 to $11,520,617,000 at the end of last year, an increase
of $4 614 442 000, or 66%. Certificate holdings of the Twelve Federal
Reserve Banks were up from: $2,407,150,000 at the end of 1943 to
$4 732 140,000 at the finish of 1944, an increase of $2,324,990,000, or
96%.
Note holdings increased by $891,321,000 to $1,568,221,000 at
the close of this year, a gain of 132%.
The year

system's holdings of Government bonds was the only
classification to show a decrease during the year, and these secur¬
ities declined by $381,238,000 to $1,243,426,000 at the end of 1944.
The

,

was

At the

a

decrease of 23%.

close of

&

Sons

also

was

"financing

Locomotive

is

in

field

the

offers

pany,

with

no

cording to

a

detailed study of the

Wrightsman, active in municipals
past 11 years, is manager
municipal department.
Harvey Fisk & Sons traces its
history back to Fisk & Hatch, or¬
the

being adopted in
1886, following completion of the

Kimm

Central Pacific Railroad iri which
a

to

,

the respect

in our
of the
returning veteran, of the Gov¬

&

Co.,

to

Admit

120

of the New York Curb

Exchange,

has admitted Walter E.

Kimm, Jr.,

to

partnership,

as

of Jan. 2nd.

.

.

year

tended for

1944,




.

85.3%

.

reserve balances of the member
banks during the

member

.

9

"■

%■

■

■

••

hanks in

1944, through the

•

of the total Government security

acquisition

of

a

o£, Government obligations, notably short-term
V*

■

V-

A, '•

■

/'■

■'

/■

• ••

t';

fact, at the end of 1944, of the total volume of
Treasury bills
outstanding the Federal Reserve banks held
$11,520,617,000, or 70%.
Government securities by Federal
during 1944 amounted
to $7,449,515,000, which made credit in that
amount available to the
System.

This compares with the increase, in money in circulation
decrease in gold holdings
totalling $6,272,000,000, -which took

credit out of the system to that extent.

...

v/'-

IN

"MADE

label

bears the

THE U. S. A."
*

MARK MERIT

-

of Schenley Distillers Corp.

Situations of Interest
208

W. Fairman

South

cago,

Stock

La

Salle

Chi¬

Aircraft

Corpora¬

& Engineering

tion, Garrett Corporation, arid

also

have for distribution a brochure
the Magnavox

the

is

a

Columbus

had

war the Federal authori¬
of furnishing member banks with

Company,

Street.,

111., members of the Chicago
v Exchange,
have prepared

from

Company. Also

recent analysis on

Stevens

Venetian

Building 3%-5%.

It is indicated that during the

&

interesting analyses of Interstate

were

ties will continue this policy
the necessary reserves. ...

Fred

Copies may be
W. Fairman &

Company upon request.
mirriii

.New York City reporting member banks, during the year 1944
showed increases in their holdings of Government bonds of
$1 498 000,000, with Treasury notes up by $1,729,000,000, while certificates
gained by $253,000,000, with Treasury bills down by
$654,000,000.
The trend of investments in Government securities
by these institu¬
tions during the year was decidedly toward the

longer maturity,

•

Aircraft and Radio

available

$1,177,000,000 greater than the
credit withdrawn from the System by these two
factors, and was
mainly responsible for maintaining excess reserves, of the

higher income obligations.

FREE —Send a postcard or letter to
Schenley Distillers Corp., 350 Fifth Ave.,
Y. 1, N. Y. and you will receive
a booklet containing reprints of earlier
articles on various subjects in this series.
N.

on

Thus during the year purchases of Government
securities by
the Federal Reserve banks

System.

augurs

well-being of

country.

Fred

;

In

and

which

business

! SJylte'/.incre/scd from $1,126,000,000 to $1,400,-

figures, the increase in the volume
circulation, and the decrease in gold holdings have

considerable amount
,®.

*

publication, but it is

well for the future

It

last year.
.However, the Reserve authorites following the policy
adopted at the outbreak of the war, of
keeping the Government bond
market orderly through
open market operations, made reserves avail¬
the

**

*

good to withhold. It is an
expression of the spirit of modern

our

indicated by these

in

tended to reduce

to

•'

too

decreased by $1,365,000,000 to
$20,639,000,000 from $22,004 000 000
—

able

*

*•-•7

.

money in circulation increased by
of $25,335,000,000, while gold hold¬

us, -

The statement above was not in¬

American
one

for

through its accomplishment,"

REESERVE BALANCES LOWER.

*S 12CU.LX_v<L€>S#

everyone

and'" gain happiness

Greenwich

holdings of the Federal Reserve System had a
maturity of
or
less, with 8.2% in notes and balance of 6.5% in bonds.

currency

of

present organization,

Street, New York City, members

leading

part/ *
' '
.I Tt-was iri the dark days of the
Civil War that Harvey Fisk, then

ings

This policy should be so
so human, so attuned
the times, that it will merit

ernment, and of the public,

Kimm & Co.

Sons

financing the firm took

j

policy '

see a

broad,

G. A. Saxton & Co. upon request.

ganized in 1862, the name Harvey
&

opportunity.

pany.

situation

F.

that this company
organization willing

adopted which accords with
the foregoing for the guidance
of the entire' Schenley com¬

attractive outlook,

teresting study may* be had from

Edward

;

every

so

an

"I would like to

deconversion problem, ac¬

for the

Haverbeck.

its

give veterans every possible, 1

true

:

of

M.

be the

it should

...

position,
will be

an

.

component part, to be staffed

Corporation, formerly
Fire Extinguisher Com¬

General

since 1933.
firin are

new

.

our

by veterans in every possible

Tubes.

prepared by G. A. Saxton & Co., Inc., 70 Pine Street,
New York City. Copies of this in¬

Fisk

over

Grinnell

Government

/

aim of Schenley, in

the

and

of

gamut

"When this tragedy of war

only

not

Outlook Attractive

RESERVE BANKS' CONTRIBUTION

-

was

This

Hudson

has

007^0 nnn\e an all time peak
$4 907,000,000 to year^u.^ closed,

obligations increased by $22,000,000 for the )veek
ended Dec. 27, which seems to bear out reports that the "Trading

-

Fisk

American

municipal

G. Grunwald, Ralph W.
Proctor, J. Ryan Smith and Harri¬

Government

■

partnership un¬
Harvey Fisk &

the

municipal

of

It

in

the
Central Pacific, first rail route
across
the * Continent,
but also
many other principal trunk lines.
In later years the firm financed

of Jan. 2,

W. Proctor & Co.

nimCnnnrTr is
000,000, As

■%yities.

as

entire

business.

Harvey
active

iv

search, New Products, Office
—the

War.

Martin

son

12-15-52/54.
;long-term partially tax exempts were firm with some interest
being evidenced in the certificates of indebtedness.
It is indicated
that the dealers are carrying large positions over the year-end in
anticipation of higher prices during the early part of 1945. . . V
to

a

returning veteran, whether it
is in Sales, Production, Re-

the

to

position

available

"Every

consolidation

Co.

of

long 2 ^s, the June 2% due 1952-54 and the new 2% due

Loans

war

should be earmarked for the

firm, and later in
refunding Civil War loans and in
financing the Spanish-American

&

as

name

The

•

was

..

movements

Government

firm

to

1863.

and

TRADING FRATERNITY ACTIVE
Price

the

Partners

+1.2
+0.13
+0.12

"Partially Tax Exempt.

turned

The business hereafter will

been

+0.16
+0.24

*

the

years

requirements in the Civil
when
President
Lincoln

Harvey Fisk & Sons dates back
to

+0.28
+1.6

_

2 Ms

early

em-

ployees of other than
replacement status.

bonds.

+1.6

—

2%

the

Fisk

securities and State and

+1.2

111.16
103.7

107.23
112.22
103.23
9-15-1956-59
:
—Issued 4th War Loan
100.24
"9-15-1956-59
111.6
112.2 f
"6-15-1958-63——:—
110.28
112.2
"12-15-1960-65——
111.12
112.14
6-15-1962-67———
100.1?
100.25
12-15-1963-68.
100.3
100.15
6-15-1964-69
100.0
100.11
12-15-1964-69..
100.0
100.11
3-15-1965-70__—-Issued 4th & 5th War Loan 100.10
3-15-1966-71—-——^Issued 6th War Loan
100.12
9-15-1967-72,
100.10
100.20

r\

2Vz

106.21

"3-15-1955-60—
—
3-15-1956-58———

2»/4
2%
•

its

War,

Sons, dealers in U. S. Government

+0.10
+1.3

•

103,31

101.19

——

+0.12
+ 0.10.
+ 0.20
—0.5
+0.20
+ 0.17
+ 0.13
+0.15
+0.16

110.26
106.29
100.24

Issued 5th War Loan

1

•

100.24

12-15-1952-54—

2

der

+0.18
+0.20

-

Harvey

be conducted

—0.7
+0.12
.

of

nouncement

1945.

—0.8
+0.2
+0.8;,
+ 0.11
+0.12

102.3

.

103.18

6-15-1952-55

'

2\\

.

107.1
107.0
100.4
110.31
106.0
100.7

("9-l5-1950-52_—
"6-15-1951-54—
9-15-1951-53——

2u2

2*4
2

101.16
101.11

6-15-1949-51—

2

small bank, be¬

ernment

R. W. Proctor &

—

em¬

sistent with fulfillment of our

prominent in financing U. S. Gov¬

chapter in the history of
one of the oldest banking houses
in America, identified with U. S.
Government financing since Civil
War days, is written in the an¬
new

Sons, Inc., 40
Wall Street, New York City, with

—0.21

106.8
104.8

•9-15-1948—

2Va

105.31
101.8
106
104.10
101.24
101.22
101.20
109.23
106.29
101.16
101.8
107.13
109.10

a

•

associated with A. S. Hatch.

came

In

of

—0.16
—0.5

101.8

°3-15-1948-51

1*4

.

103.20
101.27

102.0

3-15-1948-50

2

0*

A

.

every

veteran every

responsibility to present

.

PRICE RECORD FOR 1944

,

ployment with Schenley con-

...

.

give

to

war

possible opportunity of

to assume, based op

.

is

obligation
returning

Phone LD-159

•

\

job with Schenley to j

join the Armed Forces, full
opportunity of reemployment
with the company. Our next

UNDERWRITERS AND DISTRIBUTORS OF

BROKERS OF BONDS, STOCKS, COMMODITIES

With considerable financing yet to be done,

j

left his

INVESTMENT SECURITIES

.

Government

*

*

obligation ia to

give the returning veteran who
.

OTHER LEADING EXCHANGES

year

*

"Our first

EXCHANGE AND

MEMBERS NEW YORK STOCK

of 1944, estimated at
$52,000,000,000, a sharp increase in currency in circulation and three
War Loan Drives, the Government bond market closed the year with
practically all of the obligations on the plus side, except for the
shorter-term issues which declined due to approaching maturity or
call.
This should be evidence enough of the controls that the
a

BANKERS

"

Now Clayton

—

Securities

BOSTON, MASS.—C. Comstock
Clayton

has formed

thb Clayton

Securities Corporation,
shire

Street,

82

succeeding

business of C. C. Clayton

Devon¬
to

& Co.

the

;

THE

6-

COMMERCIAL

CHRONICLE

FINANCIAL

&

Thursday, January 4, 1945

..

PHILADELPHIA

FACILITIES ;

CLEARANCE
We

Crompton & Knowles

enced

Loom Works

to

offer

and

Brokers

handling

for

department

transactions.

Security

;■/''77//7

■

an

:■

Phila. Electric Co.

experi¬

of

Dealers

security

clearance

the

7:Y;7

!

;

'

j

Common Stock

,

(

$1.00 Preference

Our facilities

of the best and the cost is very moderate.

are

V
Memo

Request

on

THE

BUCKLEY BROTHERS

PENNSYLVANIA; COMPANY

'

and

New York, Philadelphia

Members

Angeles Stock Exchanges
Wire

Private

v-.-'

between

System

onLivestxnd Granting Annuities

f or- Iinsurances
'

Los

'■

;

v."■ ' V

'

Philad&lph a, New York and Los Angeles

^

New

.

•

1510 CHESTNUT ST..

York

Bostop

ctticago

PHILADELPHIA

PhHa. Phone

N. Y. Phptie

Boston Phone

Rittenhouse 8500

Whitehall 4-1234

Enterprise 2050

St., Philadelphia 2

San Francisco

Bell

•

System Teletype PH 279

,

•

.

;

,

to

Girard Trust Co.

Pfd.

New York Phone
HAnover .2-2280

Phone

1477-

Locust

V

-

.

Teletyp? PH 257

■

is

a

the

for

out

Under

duration.

for

establishes

equities

diminishing

the

exceeds

which

demand

a

supply.

tj'/zs 25% Paid

selection

Phila. Reading

Tremendous stock¬
piles of war materials and sup¬
plies are an inevitable necessity.
In fact,
they constitute a vital
factor in bringing victory closer.
Despite careful
and intelligent

Ctf.

ERSTLEY, SUNSTEIN tr CO
;113 So. Broad St.
Vork

New

Philadelphia 7, Pa.

Phone

WHitehall

Bel)

4-2300

System
PHLA

Tel.

J
|
|

501

-.ore-planning, a European peace
s bound to bring about major dis¬
locations in labor and industry,

'/.rtually, all war production has
useful

'}ut the problems of reconversion
will
not
fall
equally upon all
elements of individual industries.

Columbian Nat. Life

Richmond Cedar Works

Bought

—

,

Sold

KENNEDY

1923

\v_

Philadelphia Stock Exchange
Land

Title

Building

PHILADELPHIA

Telephone

10,

Rittenhouse

Bell System

nessed

last

PA.
3940

Teletype PH 380

negligible

Leckie Fire Creek Coal Co.

Leckie Smokeless Coal
Preferred

and

«*..

Coal

SOLD

&

—

Coke

QUOTED

W. FOGARTY & CO.
Established
■

the

to

manufacture

of

jquipment extraneous to its peace¬
time activities.

30,

!

ended Sept.

1944, the Company's annual
disclosed
the
following

Sales

Lombard 6400

281

in

qualified for profit, $34,compared with $31,393,1943.

Net
cents

PHILADELPHIA 6, PA.

Teletype PH 240

:-'///

earnings, $729,838,
per

$240,000

special

on

New

or

share,

common

$2,386,083
taxes

Inquiries Invited

American Box Board Co.
Odd

Lots & Fractions

Empire Steel Corp. com.
Pittsburgh Railways Co.
All

Issues

Warner Co. pfd. &

reserves

Federal

and

78

Wawaset Securities

il- M.

Byllesby & Company

PHILADELPHIA

OFFICE

Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717

shares

Teletype PH 73




ful

6,895

so

common.

in

In

the

of the 1944

the company com¬
pleted all contracts for various
types of heavy webbing and other
war
materials, and, on Oct. 31,
had no contracts or inventory of
raw
materials or finished goods
of

armed

difficulties

services.

was

been

not

able

to

meet

United States and in
continues

to

foreign

be

on

an

the

and,

in

better

much

a

than

yield
tions

lucrative,

more

particularly with reALUthcriiy obligations.

afford

obliga¬
of

general
a

majority

IA eur opinion, tic spread

cases.

is much greater than the risk.

the

mar¬
allot¬

somewhat

These

Because

increased
demand
for
tet-on/hats.
Distribution in the

Pennroad

At

Nashville

-ates

bid¬

is

however,

in

gieatly

kets

Ne^'*-

The Over-the-Counter market

obtaining mate¬
rials and in maintaining an ade¬
quate working force, the company
has

;

1,1744, and again
saving in

further

"/7/7'::7;7;;-77;7:k:and

Memphis

of

reduction in other

or

forms

any or all of which
beneficial to the citizen.

taxation,

will

be

Brown Eros. Harrisnan

year,

the

for

June

with

have
The
resuLs, of course, wi 1 be in a few
years
the elimination of utility
debt and either very cheap utility
;

still
ve^y brisk
V1.
and; municMw"ri
ipalities are obtaining exception¬
ally' favorable prices.

common

on

also done well in this respect.

some
li tie

a

ding

the treasury

last quarter

/and

theless

acquired has

bonds

interest.

>s..iU hope¬

made

considerable

a

-

refund

slight,
Others /

money.

of

shares

~

or

bonds

losses.

the

refunded

market being fivorable
the operations of the prop-' 5
so,
profitable/ they were
again able to call these latter

their
holdings
and

with

1.71943,
and

issue at

a new

tv

^

on

the

Dec.

called

The

deal¬

disposed

of

were

saving in interest;
.

reduce d

prices

preferred stock

held

are

some

ers

cost.

fiscal

the

vs.

Penna. RR.

next

meeting of Pennroad directors, Jan. 10, it is ex¬
pected that company counsel will
advise

on a

future

course

of action

The: Pennsylvania
Authority; permi.s the creation of such

Act

bodies

certain

for

specified

the;,Pennsylvania Turn¬
pikes, v.the
Philadelphia-Camden
Bridge and., the Easton-Phillipsburg Bridge. With these excep¬
tions. almost all of the other
thorities

created
or

have

sewer

been

au¬

a

reargument, ask the

fields

will

be

purposes.

within

included

BOSTON, MASS.—Brown Bro¬
Karriman
&
Co., private
bankers, observed the 100th anni¬
versary of the founding of their

Boston office

on

1844. by

Dec. 31.

Thomas B.

Cur.is, grandfather of
Louis Cur is, the present Boston
The firm h^d baen estab¬

partner.

lished in Philadelphia in
in

New York

1818 and

in 1825.

The history of the firm
ton

covers

the

a

a

in Bos¬

period during which

city has

grown from a mer¬
shipping center withpopulation of about 100.000 to

cantile

and

become

a

leader

and industrial

in

the

financial'

development of the

nation.

Shortly after the opening of the

for

judgment of $22,?
Unlike other States, the Penn¬
104,515 awarded Pennroad against
Pennsylvania Railroad by Federal sylvania Act does not provide for
Judge George A. Welsh and now j the establishment of agencies to
set aside by the Circuit Court of | acquire gas or electric properties.
Appeals.
It is pointed out that However, it is not only possible
Pennroad
can
ask
the
Circuit but distinctly probable that these
for

Genlury in Boston
thers

pur¬

poses.
Three issues predominate
in this field at the present time
and have a far-reaching market

either water

in respect to a

Boston

office, now located at 10
Post Office Square, and soon after
the British Government had estab¬
lished

the

placed

Cunard

Line, the firm

in

operation the Collins
steamships, the first transAtlantic line set up in the United
States.- As business developed, it

Line of

financed the shipments of other
Court for a review, the ^cope of the Act in the future. merchants.
After
a
time,
this
isome
States
these
utilities
or
seek to retry the case in the In
phase of its operations expanded
Delaware' Court,
where it orig¬ operate in comparatively restricted to such an extent that it sold its
or
in
fairly large u.cas'
areas
inated.
m
i»uijr
io.gc
'J areas, ui
merchandising business and con¬
serving a relatively small populad
The ruling setting aside the
i fined itself th»„.fl.r tn the finan_
thereafter to the finan.
tion.
cial field.
As private bankers, it
$22,104,515 award has no effect
In Pennsylvania, however, al¬
upon the financial statements of
accepts deposits, provides check¬
most all of the electric and gas
either company, since both car¬
ing facilities, grants commercial
ried the item in their annual
properties serve large areas and
loans, issues commercial and trav¬
U. S. Supreme

the'U.

S.

Circuit
case

minority dissenting hold¬

York

Ice

Machinery Corp.
7% preferred who sought to in¬
validate the company's plan of
reorganization and merger, con¬
summated last year.
The dissent¬
ers

will

be

previously
price

of

holdings.

Pittsburgh
In

Court refused to. Review the
of

forced

to

determined

$90

per

embrace

"pending litigation."

accept

the

appraisal
share for their
,

several counties and

a

volume
of
consumers.
While it may be true that this
great

income.

Last: week,

as

Railways

Company
*

booked, $41,435,Preceding-year, $34,462,556.
Uncompleted
orders
at
year
end, $27,139,922, compared with
$24,683,556.
Net
working' 'capital at year
end, $13,703,595^

ers

reports

State

business

of three

com.

preferred

wit.i

a

ing

the company

been cancelled and the

after
and

415.

Dealer

13,873

The

After

•

As

bonds

of

.

highlights:

If) 19

Lafayette Building

Con¬

were

purchase,

and

Court

77./

For the fiscal year

106,874,
.

considered
of

are

less than 2%

report

Pemtoerton
SOUGHT

Common

since

its productive floor space has been
converted

Hurd Coal & Iron Co.

Yet its reconver¬

effort.

problems 7

1944.

mium.

the

half

namely

ditioning, this Pennsylvania man¬
ufacturer is engaged in capacity
production, almost all of which is
directly or indirectly related to
war

by

Ox

period of wait-

are

year

levels appears to be strong and most

issues

last

year

ment basis.

Continuing to forge ahead in the.
refrigeration and air con¬

sion

1943 results.

net sales

acquired

at

buyers

during

Corporation

field of

the

Jamison Coal & Coke

wit¬

year.

York

CO.

and

Established
Members

par¬

advances

specialized

the

Quoted

—

in

12 45, a continuation of

find, in

,,

.

is

over

shares of its 8%

Properly advised, he will likely

Wolverine Power
; ■'

investor

ticular need of sound guidance.

Bay way Terminal
7-'

the

Thus

—

!

application,

pseace-time

fiscal

getting under way with a more opti¬
prevailed.for the last thiee or four months.

has

.

Company

the

than

us

by

31, 1944, showed mod¬

During the

increasing

of

for

year seems to be

hope and expect that the period of lethargy we have witnessed
will soon end and normal trading ensue.
J
In the Pennsylvania municipal mart very little money was made

$16,850/819, compared with $16,251,831.,
Consolidated
net
income, r after
reserves
for
depreciation,
con¬
tingencies and Federal, State and
Canadian
income
taxes,
was
$458,731, equivalent to approxi¬
mately $1.14 per share.

are

becomes

gains

solidated

importance.

Coal & Iron
St.

est

quick to point out,
however, that as the war ap¬
proaches its final and decisive
stages, the necessity for careful
Analysts

Inland Gas

5s

-

Stetson

Operations
ended Oct.

tone

new

will

these circumstances, the quest

•1st

of

greatly from record breaking 1944 fig¬
the way of-tax ameliora¬

steady, upward pres¬
sure on security price levels. New
financing has been and will con¬
tinue to be largely in the form
of refunding operations.
Equity
financing on a substantial scale

Chestnut Street, Philadelphia 2

1121

investment

constitute

II. N. NASII & CO.
Phila.

mistic

it is pointed out mac nai o. a/ i< co...c

Thus funds seeKr-^—.—,—:—
continue to•
John B.

anticipated.

ing

Common

&

new

The market at slightly lower

tion, either individual or corporate, it is conceded that no increases

Transportation Co.

2039,

The

..

While not much may be expected in

are

Provident Trust Co.

3-Gs

JNtw xear.

tire

1945 is not likely to vary

ures;

Philadelphia National Bank
Phila.

operations m

in

Lives etc.

on

..

Pennsylvania securities dealers and distributors^ not unlike those
throughout the country, look forward with confidence and optimism

Fidelity-Phila. Trust Co.
Penna. Co. for Ins.

Pennsylvania Municipals
By EDWARD W. KLING

Outlook for 1S45

.

!
i

Corn Exck. Nat. Bk. & Tr. Co.

I

Member
7':
Deposit Insurance Corp.

F. J. MORRISSEY & CO.

Penny packer OHIO

1528 Walnut

Pennsylvania Brevities

Central-Penn National Bank

.

Incorporated

-

i

Telephone—WHitehall 3-7253

Y.

Philadelphia Bank Stocks

i

i

Streets

Federal

System

Reserve

BANK STOCKS

•

Hagerstown, Md

Pittsburgh, Pa.
N.

Federal

,

E. H. Rollins & Sons

-VV;'•':-

'

•

':•■■■ •v7../

Member

Los Angeie?

New York

.

PHILADELPHIA

Philadelphia 2

Walnut Street,

1529

■!.

Chestnut

and

15th

:

.

j

.,

(bought—Sold—Quoted

:

Inquiries Invited

/7

Specialists in

PHILADELPHIA

:/ /■
.

Common

//

an

action taken to

speed

up

reorganization proceedings of the

Pittsburgh 7 Railways
which may serve

Co.,

but

only to further

matters, eight bond¬
holders of underlying companies
last
month
petitioned
Federal
Judge R. M. Gibson to have Phila¬
delphia Company, traction -com¬
pany parent, barred from sharing

State

field,

has not pioneered

it

is

not

this fact.

unlikely

■

*■'

has

been

/

Tennessee

; >

a

acceptance

deals in

that

7

7

notable

example in the creation of suc¬
cessful authorities services by the

earnings of electric properties. An
outstanding example has been, the

fiscal

as

and
in

business,

>

and//,

foreign exchange. It acts

in this

taxpayers " will benefit to an
even greater
extent because of

complicate

elers' letters of credit, does a gen¬
eral

agent

for

corporations

governments, holds securities 7

custody for others, maintains an

investment advisory
chases

aqd.

others,

as

sells- securities

broker for a

for

commis¬

sion, but does not engage in the
underwriting

business

or

in

Pittsburgh

underliers. The

,

.

•

the

participating in the assets of City of.Chattanooga. As a munic¬ sale of securities to the public.
Railways Co. and its ipal credit, this city, with a Moody
The latest published report of
petition also asked Rating of Baa on its general ob¬
Brown Brothers Harriman & Co.
that
the ' underlying
companies, ligations," is only fair, In 1939 it
showed total assets on Sept. 30,
net at present under court juris¬ acquired from Commonwealth and
diction, be made a part of pro¬ Southern the electric properties 1944, of $176,766,919. Deposits ag¬
ceedings.
v
/
serving the city and to finance the
gregated $156,310,176 and capital
Neither of the petition's aims acquisition, sold $13,200,000 bonds. and
surplus amounted to $13,585,are
particularly new.
The City Of this amount, $6,040,000 of the
bonds were redeemable at a pre- 802/7
;
(Continued on page 67)

or

;

Service, pur¬

'

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4348

161

Post-War Job

Requisites

PHILADELPHIA

TALON,

INCORPORATED

FEDERAL WATER
LUKENS

Full

Employment. Calls Measures
the Nineteen-thirties Unsatisfactory.
* v
for

of

2039

DIRECT PRIVATE WIRE

STEEL

&

COMMON
•

GAS COMMON

COMPANY

DELAWARE

POWER

LIGHT

&

PUGET SOUND POWER &
PUBLIC SERVICE

Calling jobs the most important post-war business problem, the
Dec. 27 issue of the "Guaranty Survey," published by the Guaranty

OF

COMPANY

LIGHT

COMPANY

INDIANA

BUFFALO, NIAGARA &

$1.60 PREFERRED

EASTERN

AMERICAN-LA FRANCE-FOAMITE

COMMON

Reed, Lear

PHILADELPHIA ELECTRtC COMPANY COMMON

Company of New York, reviews the pre-war efforts in creating

EMPIRE

jobs and concludes that the results of these measures were compli¬
cated and obscured by the numerous types of social reform and

DISTRICT

CENTRAL

REPUBLIC

ELECTRIC

ILLINOIS

COMPANY

ELECTRIC

NATURAL

GAS

GAS

&

COMMON

Members

the

during

jobs

of

supply

the

of

ture

amounts of public
unsatisfactory
and
avoided in the post¬

large

funds

was

should

be

period.

war

"In

important respect," con¬
"Survey," "the war

one

tinues

the

marks

continuation and intensi¬

a

the

of

fication

trend.

pre-war

Employment is still supported by
the
Government, j.through war¬
time activities, and to a* vastly
increased extent. It is; not strange
if there

are misgivings as to what
happen when this support is

may

V

withdrawn.
"It

seems

that

the

to be,

generally agreed

readjustment

to

peace¬

dollars.

No

be

can

enough

money

are

we

proof ever offered that
governmental borrowing and
spending on a large enough scale
can
raise
employment and na¬
tional income to almost any level
within

the major phases of the
reconversion are completed, the
that,

once

and

demand

deferred

mulated

the

accu¬

of
stimu¬
production and employ¬
purchasing

power

wartime will be powerful
lants

to

war-created

These

ment.

fluences,

however,

1

face-to-face with the crucial ques¬

tion:

removed,

been

that

in the nine¬

recovery

teen-thirties
if not, is

conditions

the

Have

prevented

and

there a clear and early

prospect that they will be?
Continuing Obstacles
"It would be pleasant to answer
this

question in the affirmative,
to support such an

difficult

but

in the

answer

light of the avail¬
This

evidence.

able

is

not

be¬

commentators
assert, ours is a 'mature' economy
in which scarcity has given way
cause,

some

as

abundance

to

free

private

longer capable
adequate employAs far as we know or have

enteTpfise is
of providing
ment.

no

to

reason

-.any

and

-

private

believe,

enterprise is as inherently capable
of providing employment as
it
ever was.
It is because there has

prospect of
in the public
policies that created such an un¬
congenial economic environment
during the pre-war decade, and
that may well have been, as so
many
business men-and econo¬
mists believe, the decisive factor
preventing our economy from re¬
as

appeared

yet

substantial

establishing itself

on a prosperous

basis, as it has so often in the
past.
".It is true that some Congres¬
sional leaders are insisting on the

reducing taxes and
balancing the Federal budget as
soon
as
possible after the war.
More convincing evidence, how¬
necessity

of

fact that Federal,
State and local governments are
already planning to spend billions
of dollars for public works, and
that no serious effort is: being
ever,

■

the

is

made to

'Philadelphia

up

There

of

Surtaxes

be

should

and

be

simplified

should

Taxation

ized.

solely

as

a means
as

The

"The
Act

National Labor

should

be

rev¬

its

per¬

certain
Monongahela Street Rail¬

to

to

stockholders

higher

Regu¬
lations in the field of wages land

sented

corporations are.

for

unpaid

modified.

'"'All

should i

initiative

dividual

5%,

coupon

funded

by

refunding of

a

obligations.

debt

is

of.

review.

heard

practice

before

the

Federal

Court

Wilmington on Dec. 20.
Ob¬
jections were voiced by the Guar¬
anty Trust Co., as trustee for the
company's debentures, and by an
independent debt holder.
It was

legislative power to
administrative agencies should be
delegating

discontinued.

of credit ;and
other forms of governmental com¬ pointed out that since no' elements
of
bankruptcy- axe- "involved,
petition
with. private j business
should be reduced to a minimum*. Standard Gas. & Electric deben¬
"The- granting

•

"The

gold

should

standard

tions.

issues

i

>

ture holders are entitled either to

be

retain
receive

On

the

contrary,

■

political

the

investments
call

price,

or

forts of

private enterprise, to .fur¬

nish jobs will encounter the same
obstacles after the war that they
did

before the war, and that the
will again consider

Government

i

\

"Public policy in general

itself

obliged to fill the gap bv
spending
billions
of
borrowed




enable them to
fulfill their, .public obligations^
They are the answer to the state¬
sider necessary to
.

ment,

so

fashionable

.

27,

5.

-

S.E.C.

The

has

approved
H. Ware,

John

by

(Pa.)

Bangor

ila. Real Estate

the
III,

Securities

Co.'s

Gas

ila.

Gas

Corp.,

manufacturers

supplies and fix¬
tures, announces the purchase
of James Supply
Co., Chatta¬
plumbing

all

bringing to 31 the num¬
of
Hajoca
distributing

branches.

Members

Philadelphia Stock

Packard

Exchange!

Bldg., Philadelphia 2

Teletype

N. Y. Phone

PH 375

REctpr 2-0037

operates

plants

manufacturing

three

the

firm

The

issues

Samuel K. Phillips & Co.

nooga,

ber

Transportation Co.

Gas
Co. of Stroudsburg.

Ilajoca
of

two

on

Atlantic seaboard.

of

As

the

the

of

first

year,

We

by the Fed¬
eral Reserve Bank of Philadelphia
are
as
follows: Resigned, Philip
F. Coleman, assistant vice presi¬
dent,, to become vice president,
First
National Bank of Phila.;
James M. Toy, assistant cashier,
retired.
Appointed, William D.

will

buy

announced

changes

American
Public Service

,

$7 Preferred

Cobb, head of transit department,
Mr. Toy,* Walter H.

tosucceed

BOENNING & CO.

Wray, to succeed Mr. Cobb,

1606 Walnut

St., Philadelphia 3

Pennypacker 8200

Baldwin Goodwin With

PH 30

Private Phone to N.

Y.

COrtlandt 7-1202

Stein Bros. & Boyce
BALTIMORE, MD. — Baldwin
became associated with

cash.

in

Exchange, effects Jan. 2,

Stock

*

1945..

has

for

many

in¬

been connected with the

Baltimore, having served as

of

.

Baltimore office of
Company prior

the

W. E. Hutton and
to

entering

the

armed

Municipal Bonds

in
Man¬

business

banking

vestment

ager

Pennsylvania
and New Jersey

,

Goodwin

Mr.
years

Cal¬

members New York

Street,

forces

in

Dolphin & Co.
Fidelity Philadelphia Trust Buildisg

April, 1942.
:

Mr. Goodwin served as a
in the U. S. Army Air

Major

Force both

to. in the European theater and

the Holding Company Act;

country.

this

PHILADELPHIA 9
Telephones:

Philadelphia—Pennypacker, 4643
New

York—-HAnover

Bell System

2-9369

Teletype—PH 293

-

which thg
deemed

under

reorganization plan was

.

predictions are true, it
is much to be feared that the ef¬

Jan.

Dec.

r Compliance with the provisions of

security

should be liberalized,

their-

necessary, does' hot in¬
should
validate the .simple, fundamental
commentators
declare
that
the reflect an attitude of impartiality
laws
of
contract.
The
court
post-war era is likely to bring as "between groups of citizens,; and
of respect and sympathy for hon¬ granted opponents two weeks in
renewed emphasis on the 'Leftist'
which to prepare and file briefs.
est business, whether
tendencies that, in the aggregate,
small or
The S.E.C. will not-file a brief
4
•"
spell the very environment
of large.
but will have until Jan. 15 to an¬
"These are the principal steps
which business men complain.
swer opposing briefs/
that business men generally con¬
"If such

ties.

Philiadelphia Electric
stock,
postponed
will be made on

common

Stein Bros. & Boyce, 6 South

in

of

i

Goodwin

Testimony
on
the
SEC-approved Standard Gas & Electric
Co. ..[ reorganization
plan
w a s

be

administrative

The

Co.
from

vert

boards should be made subject to
court

PHILADELPHIA
contracts in

repre¬

approximately

000,000 collateral 4}4s, 1961.

-

rulings

Moncure Biddle & Co.

one

divi¬

hours that tend to discourage in¬

the lack of economic

ex¬

be found.

guarantee? of

accumulated

[

Settlement of when distributed

Company may offer for sale in

unions

--"The regulation of new

vitality

its claims

may

respect

connection with

promptly re-established, particu*
larly for international transac¬

during the nineteen-thir¬

press

It is reported that Kuhn, Loeb
& Co. and Smith, Barney & Co.
kre
forming
an
investment
banking group to bid for any
hew securities that Philadelphia

pre¬

repeal or amend the leg^
jslation, or to abandon or modify
the administrative policies, that
business men hold responsible for
hibited

its

Interest

and

zens

Present

as

note

stock.

common

&

1.85%

a

subsidiaries,
Co. and Citi¬

should be subject td public regu¬

lation,

4%

issue

&

with

120.341

To Net

Oxford, Pa., for $250,000, of Con¬

vol¬

|

Relations

L;abor

to

willing

respectively.
Directors
of
two
"guaranteed"
companies,
Suburban Rapid Transit Co. and
Pittsburgh Incline Plane Co.„ are
withholding dividend declarations
pending assurance that the re¬
spective tax bills have been paid.

equal treatment for man¬
agement and labor;
Regulatory
policies , tending : to : force j the
'closed shop' on business should
abolished.

be

other

scribe

be

5-year

Price

Co.

purchase

dends at the rate of 4V2% and

j

amended'to

$600,000

$600,000 in

Gas

in

checks

used

:

authorized

been

January 1, 1975/62 J

$1,425,000,

Electric

year's

theory

should be abandoned..

lias

indications,

way Co. and Pittsburgh & Birm¬
ingham Traction Co. have mailed

instrument

an

reform.

for

Co.

solidated

leases,

of
of
compensatory Government spend¬
ing—spending not to provide; re¬
lief
but
to
create
prosperity—
not

enue,

social

may

formance- in

stabil¬

of raising

Gas

AHentown-Bethlehem

holdings

tion

whole

be

pre¬

Following last month's decision
the. Pennsylvania
Supreme
Court,
directing
Philadelphia
Company to pay income taxes,
theretofore ,disputed, iiij connec¬

higher brackets should! be
drastically reduced.
The capital
gains tax should be repealed. The
as.a

burg

of

the

Federal tax structure

Bethlehem Gas Co. and Ilarris-

isfactory solution

individual incomes in

on

is

against

eliminated.

3/4% Bonds

of

Philadelphia

that

untarily not to

abolished.
goppdrate

be

course,

should

dividends

Co.

Pittsburgh
Railways
Co., provided an otherwise sat¬

asked

,

The double taxation of

Edison

investment.

strong

are

however,

they can operate suc¬
cessfully, as they have in the past
the individual answers : vary to
some extent,
but the list is Sub¬
stantially as follows:
•
4 j
"Wartime taxes and, restrictions
should,

substantial

very

environrhent

an

Company

pared vigorously to oppose such
procedure, posssibly for fear of
being "Deep Rocked" out of its

Company

men' are

Metropolitan

its gas properties to Allentown-

its holdings by court order, the

which

in

no

change

set

and

all the

by

;

Philadelphia-

In respect to subordination of

.

what specific measures should be
to

seeking to have the court

exercise jurisdiction
underlying properties.
To date, no action has been taken
on
this petition, which, in some
legal circles, is held to involve
points of new and unwritten law.

Specific Needs

taken

a

assume

over

certainly not what the
American
people
want. [They
want jobs under a system of free
enterprise.
But they do not yet
realize, apparently, that free en¬
terprise can give jobs only if it is
truly free—free to prosper, free to
expand, and free to manage its
own affairs, [/• *; ''
;
j
"When business

in October, 1942,"
petition with the District

66)

page

:

City of

Pittsburgh,

Court

tation, merging by perhaps im¬
perceptible degrees into totalitar-

in¬

will pass off,

[leaving government and business

.

of'

filed'

"This is

unemployment. There is a wide¬
spread support also for the view

Securities

PITTSBURGH

•

Washington, Pa.

Street, Philadelphia

(Continued from

process,

ian control.

Offices:

Meadvillc, Pa

Pennsylvania Brevities

however, would seem too obvious
to require emphasis.
If long con¬
tinued, the practice must lead
either to political and economic
disorder or to increasing regimen¬

time conditions and needs will be

■

this^

Kerner, Inc.

&

$100,000

physical capacity of a
The essentially tempo¬

character, * of

rary

Co

Private telephone wires to New York and Baltimore

the

country.

Investment

,

1518 Locust

vincing

difficult and may involve a con¬
siderable amount
of temporary

.

Rambo, Keen, Close

seeing the most con¬

now

&

Stock. Exchange

CORPORATION

Branch

doubts that jobs
in that way," if
is spent. ..In fact,

one

provided

Pittsburgh

COMMON

experimentation upon which the Government embarked and holds
that the method of supplementing
i
nineteen-thirties by the expendi¬

NEW YORK CITY

COMMON

PUBLIC SERVICE COMPANY OF COLORADO

.

Trust

3-6s

PHILADELPHIA TRANSPORTATION PREFERRED STOCK

Guaranty Trust Company Formulates Specific Measures
Required

TRANSPORTATION

C7,

Thayer, Baker & Go.
Appoints Officers
&

Commercial Trust Bldg.,
announces
the
appointment
of

in Tecent
chance. And
want both

John E. Fricke

Secretary.
been

as

dance if it is given a

if the American people

been

jobs and freedom, they must

years

private enterprise

r

with

Mr,
the

with

as

the

is

Members

Assistant

New York Stock

has
company' for the
Fricke,

who

company

in charge
trading activities.
and

Rakestf aw, Betz &

Vice-President

past 14 years, Is in the sales de¬
partment, while Mr. Hudson has

cannot

gip
that chance." J

Brokerage Serviced

^

Co.,

years,

that, if private enterprise
provide jobs, government
must.
Private enterprise believes
that it can provide jobs in abun-

and

PHILADELPHIA, PA.—The in¬
vestment firm of Thayer, Baker

and John M. Hudson

Pennsylvania Public Utility
Commission has approved sale

Complete Investment

for 17
of their

~

>

Co.
'

Exchange

Philadelphia Stock Exchange.
12 3

S. Broad St.,

...

•;

Philadelphia 9

PhiladelphiaTelephone Kingsley 3311
New York Telephone

Hanover 2-2280

'

68

COMMERCIAL & FINANCIAL CHRONICLE

\ THE

.

speak of the gold standard or the
foreign exchanges breaking down

and

currencies.
decree

Efforts to legislate or

have

,

a

the

countries

of
can

respective

of

legal

into

which

economic success.
Functions of government in
or

never

storing stable moneys seem to be
that of first establishing a govern¬

rency

ment in which both the

they

are

laws

the

once

government to do what it

the

to maintain the'economic and

cooperation of the people to
dependable standards. One

of these standards will have to be
money.

of

some

unit

is

of

order, in¬
honesty have

sound

and

routine

There
ters

or

legal and government reg¬

before stable currencies
form

their

functions

tional-trade.

To

free

markets

work of misguided

barriers

these

conditions

are

righted.;

the

to

the

discriminate

may

such countries

tariffs.

eral

be

practiced

restoration

stable

only

upon

of

exchanges,

sound

rates

investors

now

debts,

governed

and

controlled

present
tions

moneys,

in

the

production and trade all

of

the power

until

an

economic

other legal and government

or

political

not

take

place

many

the

money

the,)

throughout

mar¬

result

can

and free interest
only by the con¬

chaotic

kets which will provoke increased
over

out

and

and credit collat¬
being made of gov¬

Any attempt to superimpose,

But

and free

of

ditions of free money markets and
the demand and supply of capital.

against

them.

use

ernment

allow these arts

as

hands

of the currency

has
effect as a proportionate
tariff against all foreign goods. A
two-price or two-currency system

in

new

upon

the

condi¬

currency

money
markets
world will only

another

demonstration

of Gresham's

law,

over

rule

Law,

legal

any

regulation—

or

4

can

per¬
interna¬

which

and

are

;t)

-

lit

sound

Plan of

si"/

Here'

Reorganization of
51 IF,

SEABOARD AIR LINE

are

mainly j

-\

i

sit;

between

other -major

removed.

are

ernment

the

unless

conditions

have to be delayed until

fact .what people mean

same

know

same

convertible currencies will not

or

restore

•

in

establish

stable moneys under these. cohdD

change for each other in the

addition

tariffs.

to

o^ restricting

other mat¬

course

For for¬

free markets two moneys will ex¬

square

ways

in

not

budgets, the eradication of
currencies and credits,

inflated

ulations which must be corrected

sound

can.

tions may

and

other

than

seem

world

of

are

the size of
In

establish¬

dependable
follow as a

easily

can

of

the

ines/ and foreign .trade, barriers
may upset the currency stabiliza¬
tion- of- any country. . Restoring

importance.

no

Once

simple

countries

custom and convenience.

the

which

down,: law,

dealing.

law'

powers

universally accepted value such as
many grains of fine gold..; The
number of grains of gold in the
money unit -should be adopted to
purposes

in

of

matter

value.

of

breaking

people

economy

free markets, eliminating of def¬
icit financing, debts refunded into

A devaluation of the
currency

the

the

moneys

of the best informed eco¬
nomic management. Wars, foreign
crises, domestic revolutions, fam¬

well known and

so

eign exchange

function

condi¬

Instead of the

institutions

ment

live, at times these
conditions may be outside of the

.money

A money must have a unit

measure

the

conditions

cial

set up

is

political

damaging

more

Most

social

so¬

it

far

to

can

While

conversion

its

anced

been restored in governments and

at

and

in

,

and

tegrity and

a cur¬

dence

up¬

order, integrity, and governments

lost confi¬

have

governed

foreign

abroad

people either

peoples have confi¬
dence in its integrity. Such a gov¬
ernment can then proceed with

and

or

war

systems, dual-price systems, quo¬
tas, bilateral trade quotas, and a
host of other legalized practices

about

had broken down.

convertible.
country can

home

This

the

of each coun¬
try for restoring sound currency
and exchange conditions are bal¬

trade

exchanges

standards

of any
maintain the value of

But the

re¬

the

of

exchange

from

tions of the times.

money

value

foreign

resulted

course

economic

units and help create the
confidence whereby the curren¬
cies of the countries will main¬
the

gold standard and

established

within

necessary

extraordinary and unnec¬
tariffs, both government
and private cartels,
two-currency
essary

which could not be met under the

gov¬

tain

undependable rela¬

the

removed. Some of the

are

conditions

as

setting contract performances, and
over extended debtor obligations

fix the size of the

clipping and stamping coins
ahd
paper
moneys
with values
which they did not represent fails
to reveal a single case of either

coin

that

systems could not function.

contents,

physical

in such

the

conditions

economic

world

tions

costs of other means of delivering
cash payments.
The laws of the
ernments

The entire records of

failure.

their

as

domestic

in 1930 or 1939 is that

were

varying only to the amount of the

values by gov¬
complete record

monetary

ernments

of

ratio

promises will not es¬
and
dependable

sound

barriers

such

the

(Continued from first page)
tablish

changes can functions smoothly.
Among these unfortunate laws are

in 1914, or

Restoring Stable Moneys
And Foreign Exchange
ments

Thursday, January 4,1945

.

the

law and gov¬

RAILWAY COMPANY

only the correction

of these unfortunate laws and di¬

In

rectives

when they

can

which

in

restore the conditions

the

international

NOTICE THAT PLAN HAS BEEN

ex-

V.
To Holders

p
/

of Securities. Called for Deposit under Plan of

- Reorganization

October 1,

^

of Seaboard Air Line Railway Company:

: Pursuant to the

-

J

DECLARED OPEKATIVE

provisions; of the Deposit Agreement,, dated

of

as

1944, between the undersigned Reorganization Committee

*

arid holders of.securities who shall become parties, thereto as "therein

provided, the undersigned Reorganization Committee hereby, gives notice
that it has-declared the Plan of Reorganization of Seaboard Ait Line
Railway Company, operative as to all classes .of securities for which
provision is made in said Plan.:CC *
V.k" "
...r. • ,
i
Any depositor may withdraw from said Deposit Agreement at any
vb time on or before February 3, 1945, by •surrendering his certificate of
."•deposit in negotiable'form to'Chemical Bank & Trust Company, the
Depositary, at tile address.belOw.' '/. : V ; .»
'
•
^
Depositors who do, not withdraw from said Deposit Agreement on
or before said date will have no right to withdraw therefrom, thereafter

.

"*

,

-

.

.

,

,

-

riglit

:

(66of,all securities.outstand-

:

except upon the happening of one Of the events giving rise: to a
of withdrawal which are specified- in said/Deposit.Agreement.'

;

Holders of

than two-thirds.

more-

;

-

ing. in the hands, of the public Nvhich have been called for deposit under
accepted the Plan by depositirig' theiif securities with the

the Plan have

-Reorganization.Committee or iwith one, of the Commit.tees.wlttch have
approved the Plan. It is important, in order that consummation Of tKe,/-:.;--:,

-.

be expedited, that the remaining'outstanding securities be b :'

Plan may

deposited promptly with the Depositary

of the subdepositaries'

or one

named below,
-

-

-

f-

v

Dated.New York, N. Y., January 4, 1945.
TRISTAN ANTELL, Secretary
40 Wall

15 Broad

v

14

Street, New York 5, N. Y. '

.'

•

^

•,

CHARLES MARKELL,
p

.

•-?.

C"

,

165 Broadway, New York 15, N. Y. /

't

SUBDEPOSITARIES

The First National Bank

j

.

-

38 So. Dearborn Street, ^
Chicago 90, Illinois..

'

|
V

'j

Baltimore 2, Maryland.

Company,''i \

*

•

••."■• 43 Milk Street,
Boston 6, Massachusetts.

you—wherever you may be—you see

All around

fruits of'mass

production

—

Behind it is the story

the

raw

product, delivered to you.
For

more

P&H to
fact

serve

some

materials to ihe
,

;

b.

•

think, not of the product itself,

which helped to produce it at

..':b

make

H^al

?

ing of cost.
of

ore

with

The

It

may

be

"thru-the-air" handling

of

basic

as

far removed as the digging

Shovels.

metals whir




1206, 52 Wall Street,

Manufacturers

Overhead Cranes
Excavators
Arc Welders

•
•

Milwaukee

•

of

,

Y.

;
./_■

The undersigned owns#

Electric Hoists

Bonds. Please send data

Welding Positioners

Welding Electrodes

^

of

Line

on

the Seaboard Air

Railway Company Plan of Reorganization by return mail.

14, Wisconsin

Name..

Saving manpower with

by Electric Hoists. Or the joining
arc

REORGANIZATION COMMITTEE,
Seaboard Air Line Railway Company,
Room

facilitate manufac¬

vital contribution to the final lower¬

Electric

(Cut out, fill in and mail this coupon)

New York, N.

has been the privilege of

P&H product does not
some

you own undeposited, bonds of the Seaboard System please im¬
mediately cut out, fill in and mail the attached coupon in -order
that you may receive copies of a letter and proxy statement which will
give you full information in regard to the Plan of Reorganization.

If

r

brochure, "Three Score Years of Free
Enterprise," vividly portrays the American
way of business growth as seen through the
eyes of one company.
A request, on your
business letterhead will bring your copy.

»

ture or

a

-

,

-V'

■/"

,

will find almost no type of plant

you

you

This

produce
It touches every field,

American industry and grow with it.

today

is,

where

lower cost.

y

than 60 years, it

inescapable when

,

.

•

of American free enterprise—

of

production

.

..,

but of the equipment

and growth fostered by the urge to

products at lower cost.

better
from

»

the

the evidence of American

"know how" in manufacturing.

of progress

Ships

•
■"

.

»

IMPORTANT NOTICE

Off Shoes and

' - ij-tyib'-'*

x;1

Old Colony Trust Company,

Broad Be Chestnut Streets,

Philadelphia 2, Pennsylvania.

Company

of Baltimore,

Calvert & Redwood Streets,

-

k

"

\

,

I

Girard Trust

.

r

Mercantile Trust

i

of Chicago,

;

Reorganization Committer

""

.

DEPOSITARY
hemicai Bank cc 1 rust Com
'•>Chemical Hank 8C Trust Company,
b

•;

:>■

•

,

JOSEPH FRANCE,

LEONARD D. ADKINS, Counsel
■

GLAZEBROOK, JR.,

OTIS A.

'

Street, New York 5, N. Y.

welding.

But the result is

Address
(City)

(State)

Volume

that

bad

i

THE COMMERCIAL & FINANCIAL CHRONICLE

NumbeAv4348

161

drives

money

the

out

.;V.y"1..,;

good money.

|An International Money
The

suggestions

many

0
le¬

and

international documents
propounding ways and means of
and

gal

rency or a

international cur¬
scheme of international

currencies

wh|ch can be juggled

setting

up

an

sight of the

at will all seem to lose

the

that

fact

international

is

history
the

an

so

able to establish
its origin.
We have

not

of

date

good

very

had

t hat has
long that

money

rather well

worked

has

world

of the

records

of

use

gold for both domestic and inter¬
national exchange purposes in an¬
cient

Egypt,

Assyria,

Greece,

Babylon and other countries. The
use
of gold and silver as money
is

found

throughout the Old Tes¬

money

well

are

tioned

here:

and

be¬

Exchange

(1)

with

gold

into

convertible

tical

with

Inter¬

most

between
in

currencies
be

will

of

values

(4) / Exchange

,

inconvertible
markets

the

limited

for

cash barter
trades and speculation in transac¬
tions with large enough profits to
tempt extreme risks.
It

that
value,

part

to

quite

seems

possible that

country with sound economic
ditions

could

cies within

buying

its

uncertain

two

results from the fact

itself has no

with

money.

This instability of paper

fluctuates

opportunities.
destruc¬

more

free

managed paper currency standard
varies with the changing price of
the metal in terms of the paper

but

currency

tive of international trade.

prices of gold and silver.
(3)1 The exchange between the
gold or silver standard and a

the money in

and

national trade depends on credit;
and long-term credit is not prac¬

relative

money

inconvertible

an

large" profit
Nothing could be

exchange between a gold stand¬
ard country and a silver standard
country varies with the changing

money.

an

with

curren¬

and
with free markets, the price of
the two currencies, one to the
other can not vary more than the
costs of shipping gold.
(2) The
cies

economic

every

political threat that occurs, ylt is
provocative
of
instability,
and
foreign commitments in a country

these economic rules may be men¬
tween two countries

or
build up a islate
decree money values,
relations with and at the same time maintain
unstable domestic financial con¬
necessary
credit terms.
But
a country with a sound
ditions and controlled trade, price
economy
suitable for these conditions will and currency relations with other
find it unnecessary to maintain countries
will
reduce
foreign

and

power

Some of

,

manage

its

a

con¬

curren¬

relatively stable limits

successfully

as

of values.

or

meas¬

This appears to be

few-if-any-other

are

commodities

or

of

means

a

payments

because there

metals

established.

to have func¬

seems

international
ure

rules of value.

as early as 550 B.C.
coining gold and silver

Nothing else
tioned

or

and

tament,

records of
into

laws

will be limited to/the speculative

definite economic

erned by every

of

such

universal

acceptability, and avail¬
supply needed yyith such
value in smalr'bulk and

in

able

large

other characteristics adaptable for

credits

ernment

have!
in

mbhje'y, gov-and 'promises

Paper

use. /

money

general

acceptability for any
period of time.
Until

very1 long

governments and their legal
tems
establish a reputation
dependability, :* and

as gold, it
continue, to

will

gold

be

It.would

purposes.

for 12 Straight

in

exchange
from the

seem

Year after year,

hold.the preferred place in inter¬
national money values for some

in

radio

Bagehot urged

articles

numerous

progress,

/

come,

In' 1869 jWalter

interna¬

an

over

'oi\-universal ?money.He
assembled some of these articles
tional

in

Philco research led the

improving

more

Assimilating the English and
Money as a' Step To¬
Universal Money." He saw

12

in radio

America bought

over

straight

...

years, j

/

17 million

radios, making Philco the industry's

whelming leader

American

way

and performance, making
enjoyable in the hpmeJ* And

tone

useful and

the years,

Philco

book called "A Practical Plan

a

for

ill'#:

;•

de¬

present.state ofgovernment paper
moneys and debts that gold will

generations to

Years Before the War

as

that

seems

fori international

'RaM-

m

for

their

until

dependable

Ik LWm,

sys¬

credits and their bonds become

mand

11: America Made Philco

1

notorious record of failure

a

;

over^

America's favorite radio fori

11/

Ill#

-•

'

ward

the

advantage

of

that' would

coin

" a

currency

have

or

universal

circulation in addition to the uni-

Look to Philco for

farmity brought about by the uni¬
versal acceptability of gold in set¬
tling exchange

Bagehot's

balances.

But

recommendations

<

in

of

st

universal" cpin JngI:4nterhationaI
money: h^7 had ~in, mind"; strictly,
sound
money
in'"- the accepted
.

sense.

had

Bagehot's ideas of

in

money

integrity that would

an

Quality and Value

..

.

after Victory

not

fit into modern currency

juggling
the- proposed*- international

or

of

schemes

reconstructing;; the

currencies of the world.

agraph

seems

to

sum

up

This par¬

his ideas

After Victory,

of money:

"Money seems to do what noth¬
ing else will do. Those who have
it need nothing else, for it will
buy everything else; those who
destitute of it

are

are

eager to

finest Philco
will be

performance,

get

to

for

without it they may on
occasions
b#' unable to obtain
it,

built.

more

its tradition of

they most want. Money is
universal procurer, the one

the

...

war

research, it

;

more:

powerful in

Born of

beautiful in tone,

you

handsome in design. And

leadership, it will be the

value your money can

what

the

more

Philco engineers will bring

ever

buy.

t

,

11

thing by

which you are sure of
everything, and , without which
you are sure-of nothing., It seems
proof against time,.,, too;^ other
things
though

less

are

hand.'

'second
for
as

valuable'Hoday,

only bought
but money is

them

you

yesterday;

You

may

never

hoard it

and be. sure it will be
when you extract it as

years,

good

it

ever

is

at first.

Government

the

was

only, maker of this magic
and consequently the prerogative
of making

As

too.

trating

an

it seems half magical,
impressive and pene¬

advertisement

of

.the .'image
and
scription' had, and. even
curious efficacy.'.' ##1-

power

a

Le£al Rules and Government
Pxfitfmises Can Not Estab-*
,

Irsh Exchange Relations

'

Or Provoke Trade—

I
■

But

They

Can Destroy

International

Both

exchange is gov¬




'•Mco'.tft

royal
super¬

has,

buying war
BONOS
•

"""Cm*

tha Son*

yo»f

true.,

greatest

flwy

of

fluctuations

measure

and

pi trade

the

The

inconvertible

paper

currency.

trade

advantages of a con¬
vertible currency or paying inter¬
national balances in gold or its

equivalent will! be found so great
that
any
country
economically
capable of meeting these condi¬
tions will- cling' to the interna¬
tional

standard because of
advantages:. Laws
and governments can be of great
help in bringing about the eco¬
gold

its commercial

nomic
can

freedom

in

which

trade

flourish and sound money ex¬

changes based
maintained

upon

gold

can

be

against all except the

extraordinary crises.

But to leg¬

trade

to

the minimum

and carry

basis. V;.

Bettman &

on

;

a

cash

,

Reilly Formed

; The firm of Connell & Bettman
has been dissolved by mutual con¬
a new firm, Bettman &
Rei^y, has been formed by Clar¬

sent/and
ence

A.

Bettman

Reilly, to act

as

and

Joseph

J.

stock specialists

on

the New York Curb Exchange,

of

which

both

Mr.

Bettman

Mr. Reilly are members.
of the

firm

are

New York City.

at

and

Offices

115 Broadway,

?0

I

iHE

I

COMMERCIAL & FINANCIAL CHRONICLE

Itfs Your

PRIMARY MARKETS IN

Thursday, January 4, 1945

Money

Royal Bank of Scotland
Incorporated by Royal Charter, 1727.7

That#s Involved

BANK and INSURANCE STOCKS

HEAD

(Continued from first page)

Huff, Geyer & Hecht
York

New

Wall

67

Boston
10

Street

Post

3-0782

WHitehall
r

6

7

9

Office

HUBbard

Chicago 3

135

Square

0250

S.

La

Salle

FRanklin

.

Street

7535

"

NY 1-2375
PRIVATE

CG-105

WIRE

SYSTEM

PHILADELPHIA,

LOUIS,

ST.
'

'

■

CONNECTING:

7

LOS

6011

PROVIDENCE,

CHICAGO,

YORK,. BOSTON,

ANGELES,

TELEPHONES

■

Enterprise

HARTFORD,

NEW

'

TO

,

777'-

'

PORTLAND,

Enterprise

SEATTLE

FRANCISO,

SAN

7058

Enterprise

7008

Bank and Insurance Slocks
This Week

—

Insurance Stocks

J
Two of the largest and strongest of American stock fire insurance
companies are Home Insurance Company, New York, and Insurance
Company of North America, Philadelphia.
Both stocks are prime
vorites with dealers and investors.

Based upon their Dec.

31, 1943

iCatements (latest available), they compared in size as follows:

777:V'7-7

/7.

'

.V,

Policyholders'

37

me

L.—i

__

in surance

V It

Total

Written

Admitted Assets

$66,563,000

7-v:

Net Premiums

Surplus

.

$61,549,000
39,256,000

$132,10^100

of N.A.,—

will

be

88,900,000

observed

that

al-<$——

it

Hid

is

very

Bank Stocks

im¬

more

of these issues, and he
hardly afford tc ignore them.

on

Request

merely the

money

the

With

of other people.

ever-mounting- Fed¬
with the continua¬

of

explosive agents, al¬
ready great and steadily expand-

ing^ can be set off quickly and

is

Members

New

York

Stock

Exchange

Telephone: BArclay 7-3500

in-

Bell

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager Trading Department)

into the
relative effect
these two policies have on earn¬
(iuire

a

sion will

120 BROADWAY, NEW YORK 5, N. Y.

American

people, to a
large degree, have been sleeping
rather peacefully or in some in¬

not

will

or

regarding

its

continuous

way

no

explo¬

severe

But

come.

possibility

to

and

accumulation

of

the
ex¬

plosive agents there is observable
in the United States a most un¬

healthy psychological attitude at
which

aljl of

need

to take a
long and careful look. ; It is,
briefly, what we "commonly call a
us*

3

49

Charing Cross, S. W. I

Burlington Gardens, W. I
64 Neu) Bond Street, W. I

this field.

Some holes have been plugged;
few things have been stopped,

a

Bishopsgate, E. C. 2 777

3 West Smithfield, E. C. /

stances
even
pooh-poohing the
warnings and urgings and recom¬
mendations of the specialists in

TOTAL ASSETS

but not nearly

enough considering
that the pressures arising from
continued spending,- ever-mount¬
ing deficits, unprecedented ex¬
pansion of our currency, and a
rapidly falling ratio of reserve in
good money against our top-heavy
credit

of

structure

£115,681,681
Associated Banks:

Williams Deacon's Bank, Ltd.

Glyn Mills & Co.

incon¬

and

vertible paper money are mount¬
to

reserves

liabilities

in

note

The ratio
deposit

and

NATIONAL BANK

Federal Resarve

our

of INDIA, LIMITED

System has fallen so far that there
is already talk of, and plans for,
lowering or even removing the

If this should
be done, it will be unprecedented
and will have a serious meaning
for
the
people of the United

Bankers

States.

nation

a

at

can

bring

26, Bishopsgate,
London, £. C.

India,

exercised

be

in

Our
even

moderate

has

Government

care

in so far as our

not

shown

in this respect
a

n a

7;

£4,000,000

Reserve
Bank

£2,200,000
description

every

of

banking and exchange business

7

77;

FuntL
conducts

Trusteeships and Executorships
also undertaken

an

monetary system

concerned—and

Kenya

Paid-Up Capital-.7„—_£2,000,000
The

despite a govern¬
efforts—extraordinary

effort not to inject dangerous or
Weakening factors into the social
fabric .where these can be avoided.

is

Office:

in

Zanzibar]

ruin

should

in

Burma, Ceylon,
Colony and Aden and

must of

war

that

control—things
ment's best

the< Government

Subscribed Capital

necessity face many undesirable
and dangerous things beyond its

care

iHead

Branches

.,

Since

to

Kenya Colony and Uganda

legal requirements.

economic

probably;

Scotland

london offices*

situations,

monetary

the

of

demonstrate that

Laird, Bissell & Meeds

while

ing higher and higher.

There
Available

explosive

portant

It is his money that is involved—
not
the
Treasury's money nor

throughout

block the unnecessary creation of

can

these agents.

1914

striking,
to

'

under¬

can

ot the

many

easily; and certain monetary fac¬
tors, which can and should be
eliminated, contribute greatly to
the volume and explosiveness of

New York

North

worthwhile

seems

essence

eral; debt and

Comparative Analysis

difference in op¬

policy

erating

of

Insurance

This

Any mature person
stand the

volume

and to be more speci¬
fic, for each dollar of capital and
surplus
Home
writes approxi¬
mately 92.5 cents of premium
Business compared with only 44
for

volving the welfare of every citi¬
of this country.
They reach
now, and promise to reach farther,
into his pocketbook in the years
zen:

136,346)1)0

—

other way

/merica.

■

in¬

tion: of heavy public, spending, the

(Lough total admitted assets and
policyholders' surplus (i.e. capital
{/< id
surplus) of Insurance Com¬
pany of North America are larger
U an are Homo's, yet the latter
company writes between 50% and
C'0% more premium business than
does the former.
To put it an¬

cents

controversies

or

immediately ahead and for
to come.
7; 7 77

By e. .a. van deusen

71.7

.'

issues

tain

Mum

v

going on or because they have
thought they did and have dis¬
approved. Many if not most oth¬
ers, realizing that they did not
know what it was all about, have
seemed to ignore the controver¬
sies and have been apathetic, ap¬
parently
trusting; to luck and
hoping for the best.
Out of this welter of monetary
matters, there stand out today cer¬

OFFICE—Edinburgh

Branches

t ion '

s

and credit are the blood¬
stream of commerce and industry.
ings, market and gain to the in¬ five years will now be examined
Our monetary system has been
false sense of security, apparently
vestor.
Operations for the past and compared.
resting chiefly on the thought that subjected to practically every dis¬
HOME INSURANCE COMPANY
ease
germ
known/* to monetary
since there has thus far been no
Net Under¬
Net Invest.
Federal Inc.
Total Net
Income
7
Taxes
Dividends
Vi&r—
writing Profits
explosion, despite the many warn¬ science; and there are no indica¬
Oper. Profits
tions that this policy of polluting
J;39
$4,638,000
$3,268,000
$1,458,000
$4,800,000
$6,448,000
ings that, "it can' and .may hap!
and diluting this vital agent in
J 940
383,000
1,092,000
5,748,000
4,800,000
/ 5,040,000
pen," th£re is a decreasing proba¬
J 741
5,432,000
1,896,000
34,000
7,294,000
4,800,000
our economy is to be curbed or
bility, or no probability, that it
3942—
605,000
4,995,000
2,767,000
2,833,000
4,800,000
abandoned.
7,
1743
will happen.
5,613,000
4,504,000
3,392,000
6,726,000
4,800,000
7 It needs to be emphasized that
'
We see this attitude manifested
Total
$24,609,000
$12,474,000
$8,034,000
$29,049,000
$24,000,000
these are times for great concern
not
only toward the explosive in the
7 INSURANCE COMPANY OF NORTH AMERICA
r 777v
monetary field and that
monetary gases which economists there
Net Under¬
Net Invest.
F-77.7
Federal Inc.
are no indications that the
Total Net
have repeatedly pointed out but
Income
Taxes
Thar—
writing Profits
Dividends
Oper. Profits
causes for concern promise to be
also in the amazingly widespread
J- 39
$3,245,000
$4,513,000
$750,000
$7,009,000
$3,000,000
less
in
the foreseeable future.
3740-7—_
4,875,000
3,664,000
1,124,000
7,414,000
3,300,000
assumption that .we are protected
Governmental and other talk to
3:- 41
5,327,000
4,253,000
1,258,000
3,600,000 from
8,322,000
catastrophe because the price the
3742
5,410,000
3,888,000
2,334,000
6,964,000
effect
that
the' American
3,600,000
level has been kept fairly steady.
7,934,000
3,504,000
4.713-75,676,000
10,106,000
3,600,000
people can light up their pipes So#"
We are again talking about the
confidence, watch with indiffer¬
Total
$25,801,000
$8,970,000
$22,984,000
$39,815,000
$17,100,000
virtues of a stable price level, and
ence
as
lighted
matches
are
These
Insurance of N. A.: By invest¬ we are showing about the same
figures
disclose
some
thrown about, and relax safely in
V7>ry
interesting
facts.
In
the ment income, 1.51; by total net faith in its ability to protect us
the midst of the explosive agents
Erst place it will be observed that operating profits, 2.32.
against
a
great
economic
up¬
that have been accumulated and
(«>e aggregate net investment in¬
The question now arises, how heaval that we manifested in the
are
still being added to is not
come
of
both
companies
are
In fact, we are talking,
does the market appraise these 1920's.
wise talk, and it rests upon no
closely comparable.
Net under- two
stocks, relatively?
In this thinking, and reacting now very sound nor verifiable lessons of
vjriting profits, however, are far connection, we will
much as we did during the 1923-.
go back ap¬
human, experience.
i ^art, those of Insurance of North
proximately four and a half years 1929 period of a stable price level,
Probably- the. most important
/ merica
aggregating
approxi-5 to the lows of
and we :are saying in a chorus
May, 1940, at which
monetary issues with which the
1 "ately 85% greater than those of
time Standard & Poor's index of noWj as we did then, that "it" will
largest number of monetary econ¬
Lome,
despite
the
fact
that fire insurance stocks was 83.8 but not happen this time.
When it
omists,
and
others,
are
most
Home's aggregate net premium has since
risen to 119.2 on Dec. 15, did happen in 1929, there was a
vritings during the five years 1944, an appreciation of 42.2%. great cry as to "why we were not. greatly concerned today, and re¬
garding which the American peo¬
1 mounted to $318,050,000, against
Over t^e same period Home and warned." '
77:7777---' I-7 .'7 77 7
ple should stop, look, listen, and
c ily $175,342,000 for Insurance of
If it happens again, and there is
Insurance of North America have
ask questions, are the following:
Forth America.
In this connecnothing in the field of economic
performed as follows:
(I'rn, it is of interest to note fivescience that says ic probably will
Greenbackism
money

'

•

large numbers of monetary econo¬
mists have been urging the Trepeal
of this amendment.
ation of such

a

law

The continu¬
on

our

statute

books,
particularly
while
the
Treasury is at the same time ask¬
ing people to invest their savings
in Government

securities, reveals,
opinion of these monetary
economists, an inexcusable piece
in the
of

bad

faith

the

part of the
managing
the
people's fiscal and monetary af¬
fairs.
All citizens should be con¬
Government

on

in

_

-

_

,

-

—

,

.

«

•

.

_

cerned about the retention of this

law.

Perhaps it should be pointed
in passing that it would be
somewhat unjust to Secretary of
the Treasury Morgenthau to hold
out

him responsible for the passage or
the continuation of this law,
He

has

pointed out to

Committee

a

of

Congress that he did not pass
law, that Congress passed it
and has the power to repeal it,
the

and that he would be satisfied to

_

•'

average operating ratios of
jEhe two companies, as follows:

May 28,

Dec. 15,

Appre-

1940

1944

elation

27 Vi

29 V4

Ins, Co. of N, A. 56Va

90%

year

Loss

Expense Combined

Ratio

li

s.

Co. of N. A.

Ratio

54.3 %

t*-me

Ratio

42.5%

96.8%

Home

40.1

53.9

94.0

It

—

will

action

has

be

noted

that

7.3%
60.6

market

outstandingly favored

Insurance of North America.
:

It would appear,

therefore, that

Lome's policy of going after large

volume has not been
j/urticularly advantageous. True,
provides more funds for in¬
vestment, but here, too, Insurance

premium

c

£ North America makes a better

f lowing- for the five years, while
hi 1943 its net investment income

lupresented 5.0% on invested as-

lLome.
1

five

dividend

years, as

Home:

i.025;

4.6%

for

.

It is important

tilve

:

with

compared

i ets,

to note compar-

coverage

for the

follows:

By investment income,

by total net operating

prof¬

its, 1.21#




But
is

market appreciation alone
of itself a sufficient test,

not

for the investor's total

gain over
period comprises both mar¬
ket appreciation and dividends.
The comparison on this basis is

the

not—on

contrary, what

science

nomic

teaches

is

eco¬

that

it

probably will happen again—we
expect 7recurrence
of
the
usual complaint that "we were
not warned sufficiently about this
possiblity or probability."
'
The characteristic thing about
can

,

the

common

warnings

•.

nore

or

reaction

is the

to

tendency

such

to

ig¬

frown upon them so long

the possibilities or probabilities
do not
materialize, and this
as

number of these economists have

been

trying,

$ay

and

night,

to

ar.

Power of the President and Sec¬

retary
:

of

the

Treasury

to

Alter the Price of Gold

The power of the president to
alter the weight of the gold dol¬

lar—that is, the gold-dollar price
an
ounce
of gold—was per¬

of

mitted

by Congress to expire on
July 1, 1943.
Monetary econo¬
mists, outside the Government,
had fought long and hard to per¬
suade
Congress
to
bring
this
to

power

an

end.

But

the Gold

Reserve Act of 1934 still permits
the Secretary of the Treasury,

Inflation

with the approval of the President

(Sen. Elmer Thomas
of Oklahoma) to the Agricultural

in. Section 8, and without his ap¬
proval in Section 9, to change the
dollar price of an ounce of gold.

12,

May

called

the

1933,

Thomas

Amendment

Adjustment Act. This amendment
provided that the President could
issue enough greenbacks to make
the total outstanding at any one
time equal to

presen t

"

pared with 89% for Insurance of
North America to yield 3.3%.

Just why
Congress has shown reluctance to
repeal this very bad statute is not

Congress
passed what has popularly been
On

$3,000,000,000. The
supply of greenbacks—
$346,681,016—is secured
by ap¬
as follows:
proximately $156,000,000 of gold
is done- during the only period
held by the Treasury which, how¬
Market Divlin which such warnings can be of
Gain
dends
Total Gain
ever, cannot use it for the re¬
value. We would do well, there¬
Home
$2.00
$6.80
$8.80
32.3%
demption of these notes ui|der
Ins. Co. of N. A. 34.25
fore, in respect to the prevailing
,y ,13.00
47.25 83.7
the Government's policy of4 pus-.
Home is a relatively high yield notions of safety in a stable price
pension of gold payments!, j The
stock among the fire insurance level, to take a good look at our¬
additional supplv of greenbacks,
selves in the mirror of the 1920's.
group,
which
presumably
ac¬
authorized in 1933, would there-,
counts in large measure for its
And as to the monetary issues
fore be just that much more irre¬
popularity with dealers and in¬ which have been, and are, dis¬ deemable
paper
money-^a fiat
vestors,
Currently it is priced turbing monetary economists so
pa^r money.
'
7 7
around 27% to yield 4.3%, com¬
deeply-, let it be said that a great
There is no valid defense for
any

have the law, repealed.

the

and,

issuance of such

from

1933

a

down

currency

to

date,

This

was

what the Administra¬

tion did

during the year 1933 and
up to Jan. 31, 1944, under the socalled Warren gold-buving policy
(the

late

Cornell

Professor

Warren

of

University's

College of
Agriculture). If the Administra¬
tion should undertake such a pol¬
icy again, as empowered' under
these Sections 8 and 9 of the Gold
Reserve Act of 1934, it could force

Congress into

a

position in which

H would practically be

compelled

to devalue the dollar in the inter¬
ests of

stabilizing, its then-existing

foreign exchange value.
There
are
good reasons—and
only good reasons—why our Gov¬
ernment

should

*

not

unwise experiment of

reneat

the

1933-1934,

Volume

and,

a

as

Number 4348.

161

economists

tyty

consequence, monetaryhave again and again

the

face, of

Act

of

urged the repeal of these sections

to continue to

sliver

That

Alter

and

Silver

of

Weight

Subsidiary Coins

Other

law,

in

for

same

the

retains

also

to

President

the

of

the

\

Section

12,

President

to alter the weight of silver
other subsidiary coirs to the

power
and

weight of the
that

means

he

that

extent

same

This

dollar.

gold

he

the

has

the

altered

to

power

devalue these coins by 41%

(spe¬

Stated in other
tern s, he has the power to write
up the silver-coin price of silver
by t9%; that is, the silver-dollar
price of an ounce of fine silver—
$1.2929—could be raised to ap¬

cifically 40.94%):

other

our

applies

subsidiary

to

currency.

Since the face value of the silver

other subsidiary coins is,

and

and

been, considerably
of the market value of

generally has
in

excess

the metal entering the coins, there
is

why the value of this
should be written up still

reason

no

metal

further.

Consequently,

monetary

economists have urged the repeal
of

section

this

the

of

Gold

Re¬

Act of 1934.

serve

r

.

Our Silver Laws

chiefly silver-purchase laws— is
long and intricate, but in the mainit comes under the heading of a
national scandal.
These laws, in
been the result of
from the silver interests
to obtain a subsidy; that is, a price
for their product considerably in
general, have

pressure

of

excess

its

in an open

.value

market.

Act

June

of

which not only authorizes but
rects the

di¬

Secretary of the Treasury

buy all silver presented to him,
at. a price which he shall desig¬
nate, until the supply. of silver
to

shall equal in value

one-fourth of

the monetary value of our stocks

silver, or; until the
price of silver shall rise to $1.2929
per
fine ounce.
This law has
been confined to the purchase of
and

gold

Prices of domestic

foreign silver.

understandable
made in

recommended

to

But

subsidy

but thus

6,

?

to

July
6,
1939,
Congress
passed, in deference to the silversubsidv bloc, what is known as a
domestic < silver
purchase ! law
under which the Secretary of the

ficates could

in¬

ha^d

time, be
counted as reserve against silver
certificates
outstanding.
This
meant, in practice, that if one

To

the
71.11

On

wished

fixing of subsidy
prices for domestically-produced
silver by Presidential proclama¬
tion, has been just as inexcusable
the

the

1934,

Purchase

Silver

the

°s

Gold Reserve Act of 1934, and

silver

silver

all
getting

has

bloc

insistent

on

the

of

after
the

thatufor

consequences,

riod

States

United

the

war

a pe¬

abolished,

subsidy

approximately 19 months
entered

see

silver

natural

its members were able to

see

compel
the
Secretary
of
the
Treasury to hold out of war use

au¬

are

certificates

actually

secured

in

held

trust

Act,

empowered to do
The .? Treasury

(Dec.

direct obli¬
gations of the United States and
up to 90% of certain other types
of paper which the Reserve banks
may post with' the Treasury as
until

the

12,

1942)

so.

began at once
to deposit these

notes, for which under the law it
is

a

trustee not

an

issuer, with the

various Federal Reserve banks in
a deposit credit and,
month thereafter, the

exchange for
month

authority

continues

'by

this

law,
issue them, and their issu¬
by the Treasury which is not

ance

any

Since

they were paid out
issued by the Reserve

not

may

as

security.

1939,

President

by

(Continued

72)

on page

were

This advertisement is neither an offer to sell nor a solicitation of an offer to buy any of
The offering is made

only by the Prospectus.

these securities.

t

practice'

,lt has been the general

of Secretary

Morgenthau to main-*
tain the buying price of the silverpurchased from foreign sources
above what would appear to be
the
competitive
price in free
world markets, the theory under-,
lying this practice differing from
time to time according to which
it

group

was

proposed
favor

to

was

'

100,000 ; Shares:
'

'i

'•

£

*

*

*

'

s.

i»

,*

'

*

a

«

-J'c

VWjftc.*

*

• *

-y \

'

*.v■>£•? ;~;sr

Butler-Brothers

conty
own

our

>

<

%

,

whose
silver
general fixed by

silver

.

s

'

.

to favor.

Perhaps invariably the first
sideration

New Issue

-

-/aA-4;

,

producers,

prices were in
the President, until July 6, 1939.

Cumulative Preferred Stock,'414% Series

high,* as, or higher than, the
Treasury's artificially high prices
for foreign silver.
But in some
as

instances

foreign producers

also

ounce

One

reason

(Par Value $100

„

Share)

per

,

ty;

It/

J,

i'

j

;

were

the objects

per

r

of our favor, as,
for instance when, in the case of
Mexico, the OPA, in August, 1942.
authorized a payment of 45 cents,,
instead of the preceding 35 cents,

would

in

silver.
given was that this
Mexico collect more

help
During

taxes!

of this program,,

had

silver

been

for her silver.

,

early stage

an

prices for foreign

China by giving
to

Price $103 Per Share

Mexican

for

raised

her

a

What

to

"aid"

Copies of the Prospectus

high price
did

we

her

into

convertible

a

was

paper

system

of

WA*.

in-,

strong in her fight against Japan.
!■' With the entrance of the United
World War II,, silver
strategic metal in our
armament program.
In order not
States

into

became

a

divert

and

silver

away

which

to

the

see

'

;; '■

j
.

v.

-

■'

flowed

He

to

took this




the

war

step

in

■

'Harriman Ripley & Co.
Incorporated

-

'

-;T.'

•

-C

...

Glore, Forgan & Co.
■

*

V

•■

'

.

'

:

Smith, Barney & Co.

from
the industries
it, Secretary Mor¬

it

v

-"-i

Goldman, Sachs & Co.

"

needed

that

X■

Blyth & Co., Inc.

Treasury

genthau discontinued buying sil¬
ver for the Treasury in an effort
industries.

;

monpv, - thus

weakening her greatly at the very
time that she; should have been

to

be obtained from only such of the undersigned as may '
the respective States.

legally offer this Stock in compliance with the securities Jaws of

drain her sliver from her and

throw

to

may

January 4,1945.

•

"v/\

.

.

•'

'

,

w

•'

"

_

Re¬

before

banks which alone, under the

Federal Reserve
be issued by the
Federal Reserve banks against a

by

issu¬

banks which had not issued

but

bank notes may

100% security'of

the

them

amended in 1933,

to
at

use

Reserve

by

serve

emergency

Federal

the

before

ance"—"retirement"

national banks.
provisions of

by

"retirement

called

in

1935,

Under

of

want

proper

conditions.

general nature sim¬
ilar to national bank notes, issued,

prices, and they want to

silver

silver

they

to

put

certain

under

notes

monetary economists ^ave urged
Congress to repeal dpd amend.
These Economists want the silver

apparently regardless of so¬

cial

are

by the Federal Reserve

authority to issue them be¬
came
effective
in 1916.
These

or defective silver
statute books which

our

on

in

of the currency

name of "Na¬
Currency," decided, in co¬
operation with the Reserve au¬
thorities, to issue all these notes
as a
Treasury currency and as a
liability of the Treasury rather
than as a liability of the Federal
Reserve banks.
This transaction,
without authority in the Federal
Reserve Act, was carried out by
a species of manipulation involv¬
ing a sleight-of-hand performance

The

amend¬

some

to

tional

„

thorized

bad

very

laws

sub¬

of

on

ing the questionable

the face

on

Federal Reserve banks

until

characteristics

notes

depression and bear¬

rency."

,

chief

sidy from the United States Treas¬
ury,

law

bank

of the stock said
been
hastily
prepared
part

needs of the

of each the words "National Cur¬

These, briefly, are some of the

along
a

hand,

not

of notes which carries

Green

This

radical

needs

ment.

so

cer¬

against silver
mines, since the hold¬

security.

radical

specialized in our
affairs, it is necessary
to dip somewhat into some back¬
ground regarding the nature and
history of Federal Reserve bank
notes and of this particular brand

obtain the silver being

as

Reserve

Federal

monetary

of the certificates could not in

counted

the

Reserve
a

some

person

to authorize the issuance

case

"Federal

change.
The
Treasury, announcing that it had
a stock of $660,000,000 of unissued

Act to issue Federal Reserve bank

either

our

1933 to meet

notes

ers

prices, and,
as
a
monetary economists
have repeatedly urged that it be
stricken from our statute books.
The

silver

a

had

notes

oann

the

same

redeem

a

unprecedented

have

performance.
clarify this matter for

in the silver

consequence*

been

the

war

At that

circulation

in

notes" underwent

bank

—

of silver certificates

of the

sections

silver

to

fensible

of

Act

be leased to

maniDulation

*>f

Keserve

of

nature

and

and devious piece
a
sleight-of-

unprecedented

still

by the Treasury.
Beginning on Dec. 12, 1942. the

their face, was doubly deplor¬
because it was done by an

on

Fur¬

serving,
for instance, as "a bus bar" in an
electric plant, he .could .get his
silver only by clipping off a part
of a bus bar!
In principle, it
would
have
been
just as. de¬

excess,

replaced

fine ounce.

per

of

tificate secured by silver

fine ounce—a price
perhaps twiee1 as
great, as the value of silver in the
world markets.
This law, which
in

cents

subsidy "price

dustries and, at

(treasury is required to purchase
the domestic output of silver at
far

domestic

except at

notes

been retired

able

these industries

to

out¬

Treasury liabilities and

leuerai

known to man.
Their is¬
which
was
completely
illegal on every count, even: in¬
volving the use of a false legend

thermore, the Green bill provided
that silver held as security for
the redemption
of "silver certi¬

has

then

notes

of what is called "Treasury
currency" — that
currency
for
wnicn tne Treasury is liable.
By
December of 1942, at which time
the manipulation began, all but
approximately $18,000,000 of these

suance,

sold

Congress

,

t:

Treasury

bank

the

became

money

continued with
its policy of kowtowing to the
silver
bioc. ; Large numbers of
independent monetary economists
have urged,'again and again, the
repeal of this law.
far

1933,
fixed by
Presidential
proclamation; since
that time, by statute.
July

the

of

promise

banks

part

fiat money—

a

the

1935, the Federal
had
retired,
as
liabilities, all the Federal

time

pay—and fiat paper money is the
cheapest
and
poorest
form
of

law—the

b 11,

effective
July
12,
1943
(Senator Green of Rhode
Island)—the silver was not to be

stricken

laws

books,

statute

this

under

even

are

declared

funds with the Treasury.

currency

secured by nothing but

are

the

the

that

reason

not

standing by placing the required

in the matter.

These notes

they

(and civilian) industries.

has

Reserve

that
corrective

any

the

for

By February,
their

Congress,

body failed to take

Green

our

before

action

journals in "this country in
that Congress passed a law
providing for the sale or lease of
Treasury silver for use in the war

Congress, and has told the press,
silver

laid

were

1942

that he would be happy to see all
from

nation's

this

effect

Reserve

record; and yet, after the facts

on

were

exposures

of the leading pop¬

some

of

recog¬

emergency at an end.

This manipulation of the peo¬
ple's money, which began in De¬
cember, 1942, and which is sail
continuing, is probably the most
outstanding piece of maladminis¬
tration

emergency

by the Presidential

President

of Federal Reserve Bank
("National Currency") Notes

,

the

71

procla¬
mation of March 6, 1933, it is still
in

only after

was

nized

cur¬

The Manipulation in the Issuance
:

ular

of this embarrassment
by repealing that law.
More than once Secretary Mor¬
has

It

honest silver and silver

rency and silver sertificates.

peared that the nation's boys and
were expendable in this war
but
not ; the
nation's
hoarded
surplus silver!

terminates

In short, they want

Treasury.

see

December,

between

silver

and

1

Treasury

genthau

else¬

men

war

proclamation

is the Silver
19, 1934,

One of these laws

Purchase

of

effort; yet Congress
in deference to the pressure from
the Congressional silver bloc—of
which the spearhead is the Senate
Special Silver. Committee—failea
to
relieve the Secretary of the

and

Point

to

where, in an effort to give silver
a
scarcity
value,
despite
tne
urgent needs of the war indus¬
tries.
In short, in so far as the
members
of
the
Congressional
silver bloc were concerned, it ap¬

violating this law of Congress in
an
effort to do the proper thing
by the

West

at

the

Treasury's huge hoard
silver stored in its

surplus

vaults

purchase all foreign
•
for
purposes
of

offered

71.11 cents per

story of our silver laws—

The

of

him

requires

adding to the nation's monetary
supply of silver.
As a conse¬
quence, the Secretary found him¬
self in the awkward, position of

our

proximately $2.19.
The same principle

which

most of the

Purchase

Silver

the

1934

of the Gold Reserve Act of 1934.

Power

f;

THE COMMERCIAL & FINANCIAL CHRONICLE

%;

-

** •'

Union Securities Corporation

•'t.

THE COMMERCIAL &

72

mutilated until it
It
th'en

circulation

these

by

put

Daniel Bell admitted under ques¬

tioning before a committee of the
House that these notes were fiat

was

same

time

banks

money—that

im¬

lawful money.

should have been

liability into a
reserve asset—surely the acme of
financial legerdemain.
Although there was a consider¬
able rumpus in the first months of
1943, in Congress and out, when

$594,000,000.

a

of the ma¬

dogs" over the people's
money, deal with this unauthor¬
ized injection by the Treasury and
fiat

Governors

into

state

a

of inaction.

Treasury improperly and

Taft introduced

received

1943, in

books

banks

a

illegally
deposit credit on the

the

Reserve
that it de¬

extent

all

bill

Senator

on

Feb. 4,

effort to deal with the

matter, and it passed the Senate
on May 12 of that year after being

Federal

the

of
to

an

a

were

outright fiat money and, since
they were interchangeable with
our other currency, they did
not depreciate in terms of gold.
But they did dilute, as fiat money
always <|oe5» ttie quality of our
money, and they gave both the
Treasury and the Reserve banks a
purchasing power to which they

the Fed¬

of

of

money

understand that these notes

eral Reserve System were able to
talk
the
majority of Congress

By this manipulation the

banks.

of

authorities

into
the currency
stream of this country.
Since the general public did not

pointed

Board

Reserve

Federal

out publicly
by some
monetary economists, the admin¬
istrators
in
the
Treasury
and

consequence

a

Thus did Congress, as

"watch

the nature of this transaction was

nipulation in the issuance of these
notes, they are not only liabilities
of the Treasury rather than of the
Federal Reserve banks but they
also serve as lawful money for
reserves
in the Federal Reserve

As

with

important reaction was stim¬
ulated among the people's repre¬
sentatives.

not

were

amply provided

was

80 billions of francs
for

to

take to

out of

this fiat

sqeeze

but it
simply was not interested in doing
anything about the matter—and
money

that still is the

form

of issuing fiat
without the author¬

what

of

has

been called "Allied

commonly

Military Cur¬

rency."
In various theaters of this war,

the

United

States

Treasury

and

United
in

have been

utilizing this brand of
The extent to which it
has been, and is being, issued has
not been divulged by the Treas¬
not even to Congress, nor has
the Treasury made clear the na¬
ture and extent of the liabilities
ury,

which may
assumed

have been, or may be,
the Treasury as a

by

of such
issuance.
Scraps of information reveal, as

consequence

S.

issuance

of

all

United

asked it for

authority to issue this

money.

The procedure involved was un¬

precedented in this country, a fact
recognized by the Treasury when
it said on Aug. 2, 1943: "This is
the firstHruly allied venture into
the field of military monetary ex¬
pedients
and
an
undertaking
without precedent so far as the
United States is concerned."

The

Treasury took these steps
Congressional authoriza¬
tion' on the ground that the Con-

without

The
Marine Midland Trust

Company

of New York

COMPANY

*

!

of NEW YORK

STATEMENT OF CONDITION AS

OF DECEMBER HI, 1941

RESOURCES'"

Forty-Six

Street

Cash and Due from Banks'.

United States Government
(Par Value 1129,373,000.00)

...

$ 65,910,153.55

.

Obligations

.

.

.

.

129,323,992.72

.
"

Short Term State and

Statement of Condition—December

S^CS U R C
Cash

■■V,

*»■

.

Demand Loans Secured

.

450,000.00

.

1,863,432.42

by Collateral

Time Loans and Bills Discounted

Hand, in Federal Reserve Bank and Due

on

.

Other Bonds and Investments

^

726,468.88

Municipal Bonds

Stock of Federal Reserve Bank

y, 1944

V 55,413,745.06

.

.

46,468,438.82

•

-

v

.

.

"

from Banks and Bankers

•

U. S. Government Securities
State and

•

Municipal Bonds

,

•

Other Bonds and Securities

.

Loans and Discounts

.

.

-

-

r.■

•

■

Customers*

Liability on Acceptances
Interest Accrued and Other Assets

.

,

-

.

•

«

..

•
.

•

1,824,809.99

v

*

.

457,452.95

LIABILITIES
.

•

>

.

.

.

Capital
•

i

.

Surplus

...

Undivided Profits

$ 7,000,000.00

.

.

.

.

.

.

...

.

...

.

.

'.

.

.

'

.

.

.

_

„

,

Other Liabilities

Deposits

.

.

.

.

■

.

■.

.:

Deposits

.

B.

'

United States Government and other securities carried
trust

at $77,102,627.70 are pledged to secure
deposits (including $71,682,949.03 United States Government Deposits), and

for other purposes as required by law.

„

R.

President, Barber Steamship

:

Securities

Senior Vice-President

Mi GUNNISON

ARTHUR T. ROBERTS
k
*

,

-

Partner, Coverdale & Colpitis

'President

Chairman

of the Board

.

.

Steamship Co,
JACOB FRANCE
President, Mid-Continent
Petroleum Corporation

SAMUEL L. FULLER
Partner, Merrill

Lynch, Pierce«

F entter & Beatte




EDWARD Jr NOBLE
Chairman of the Board, Life
■,
Savers Corporation

J

in the above statement

V. S. Wat Loan Deposits of $59,933,944A5
deposits and for other purposes required by law.

secure

KDWAR D

BEERS,

Biscuit Co. j

JAMES C. ELAINE, President
EDO A

It-it.

BOLES

F.

1

;

Stutler

r

11. DIEFENDOKF

JOHN

\

IIUSTED

EUSTACE

.

?

-

SELIGMAN

HAMPDEN

V

E. TENER

Chairman ofthe Board,
Irving Savings Bank
^

!'

HARRAL S.

^

?

'■

TENNEY#

Vice President and

Secretary

>

CLOUD WAMPLER

FRANK A.
SEYMOUR

II.

President,

KETCH AM

Chairman

-

Sullivan & Crom well

S

Corporation

Chairman of the Board, The
Timken-Detroit Axle Company

^;

s

POPE

President,
Company

The Pittston

;

!

j

F.

JOSEPH P. ROUTH

■

;

G. JACKSON

»

•

Chairman and

FULLER

L.

Company, Inc.

'

*

,

Vice Chairman,
Executive Committee s,

President, The Marine Trust

•

Mc KOWNE

BAYARD

CONOVER

Chairman, Executive Committee
CHARLES

A.

President, Hotels

President, General Reinsurance Corp.
SAMUEL S.

LETCH WORTH

II.

Kenejick, Cooke, Mitchell,
Bass & Letchworth, Buffalo

i

Chairman, American Viscose

WILLARD F. ROCKWELL

Carrier

HENRY J.

KNOX

of the Board, ;
I
of Buffalo

"

'

.

Corporation

'

WYATT

Vice President;

-

Crum & Forster,

The Marine Trust Co.

Inc.

New. York..

MAIN
JOHNVANNECK

President, Allied Stores
Corporation

JOHN A. RITCHIE
"
Chairman of the_ Board,
The Omnibus Corporation

283,067,049.20

.

....

.

464,225.30

1,205,611.48

*

HAROLD E. TALBOTT

B. EARL PUCKETT
-

.

,

1,137,885.43

.

...

■

$ 18,378,136.28

.

.

Barringer & Brooks;

President, The Kroger Grocery
& Baking Co,

President and General Manager,
Best & Co., Inc.

American-Hawaiian

.

.

.

.

Jackson, Nash, Brophy,

Company, Incorporated

PHILIP LeBOUTILLIER

EDWARD P. FARLEY

FREDERICK

PAUL II.

Directory Treasurer and \ ~. «' '
Comptroller, Socony- Vacuum Oil

CHARLES M. ROBERTSON

WALTER S KIMBALL

WILLIAM H. COVERDALE

*

.

President, International Salt Co.

LOUIS J. HOROWITZ
*
New York

JOHN M. BUDINGER

.

.

carried at $65,738,178.70

arepledged to

and other public

EDWARD

President, The Reuben H.
Donnelley Corporation

,

Lines, Inc.

.

.

'

Company of Buffalo

DIRECTORS
EDWARD J. BARBER

.

Vice President, National

715,480.45

244,089,649.95

.

3,378,136.28

.

.

♦

♦

.

i
-

v

DIRECTORS

'$268,004,596.65
public and

.

$5,000,00.0.00

.

140,000.00

.

.

•

-

Y-:":;-,-y';

$304,252,907.69

1,148,851.37

1,841,521.39
'

.

626,779.91

i.yvTO,000,000.00
.

.

.

Acceptances

3,069,093.49
,

891,278.52

.

.

>.

.

Undivided Profits

'

Contingencies, Taxes, and Expenses .
.
Dividend Pay able
January 2, 1945 . ■.
.
.
.
v
Acceptances Outstanding
.
.
.
$2,732,799.91
.

212,609.00

.

.

10,000,000.00

.

Reserve for

Less: Held in Portfolio

.

....

Other Liabilities

.....

.

3,257,287.33

.

LI A K I L.I TIES

.

Reserves.

$268,004,596.65

Capital
Surplus

.

$304,252,907.69
.

40,897,678.93

-

1

.

.

Accrued Interest and Other Assets

510,000.00

,

.

.

'

.

.

.

*

.

1,764,363.09

•.

•.

Mortgages

Liability for-Acceptances

180,000.00

.

.

•

.

178,102,283.34

.

,

Real Estate

Customers*.

$ 44,268,008.35

.

.

,

.

*

.

.

.

,

.

Stock of the Federal Reserve Bank

.

.

,

*

Member Federal Deposit Insurance Corporation

FRAZAR B. WILDE

OFFICE--120

BROADWAY

'
110 William Street

120 Chambera Street

New York

V

"

President, Connecticut General
Life Insurance Company

>

17

Battery Place
Member Federal

States

but, in this
case,, the
Treasury neither consulted with
Congress about the matter nor
money,

War Departments, acting together;
money.

States, as interpreted by
Supreme Court, repose
Congress authority over' the

the U.

legally entitled.

COMMERCIAL NATIONAL BANK
TRUST

The monetary and related sec¬
of the Constitution of the

tions

ization of Congress has appeared
in the Treasury's
printing and
issuance

printed, issued, and used

apparently are not available out*
side the Treasury.
; :
<

Currency
Another

lira went to Italy
But accurate facts as

Sicily.

to totals

The Issuance of Allied Military

paper money

printed

of paper

and

case.

were

in France and that several

use

tons

our currency,

The

AND

samples of what is involved, that

with suggestions as to the proper

United

no

what

converted

no

States securities were posted

In short, the Re¬

banks

that

Treasury and kept there as
security against the issuance of
these notes as required by law-

amount to their reserves of

serve

is,

Congress:

Thursday, January 4, 1945

steps

the

properly and illegally added the
same

outstanding

31, 1944, the amount

Reserve

Federal

Even when

Under Secretary of the Treasury

the

notes
banks; at the

Reserve

the

through
the
banks, mounted steadily until De¬
cember, 1943, when the total out¬
standing as a Treasury liability
reached $639,000,000, after which
the volume in circulation began
to decline slowly because of re¬
tirement due to the usual wear
and tear or mutilation.
On Aug.

with

these

posited

into
the Treasury,
Federal
Reserve
notes

practically
\vent to the

House Where it died.

(Continued from page 71)
of

CHRONICLE

was

useless.

It's Your Money
| §
That's Involved
amount

FINANCUL

143 Liberty Street

Park Ave, at 46th Street
Deposit Insurance Corporation

,

the regular
within the
United States but that the rules
controlled

stitutiorv

of

issuance

& FINANCIAL CHRONICLE

THE COMMERCIAL

Number 4348

161

Volume

currency

amounts

consequence,

a

as

is

it

in

cannot—except

people

of

really a rich man's
standard.
Finally, there are some
who suggest some form of a gold-

which

Confusion

The

very

small amount for industrial

of

Laws

Our

exchange standard which, appar¬
ently,, might not differ greatly
from
the arrangements now
in

as

effect.

far

established by international agree¬

v

Money, and Money Receivable
foreigners,
but
not
for Specified Purposes
American
citizens, should have
K Some of our monetary affairs in
access to this nation's gold supply
is a question to which the Admin¬ respect
to these matters were
istration has never attempted, so thrown into a sorry confusion by

The

governing the issuance of a special
currency
by
the military
authorities within the-area under

"

occupation

military

the

of

those

ment and the usage of

international

Under

are

.

.

nations

of

law

the world.
law,
The

Hague Conventions and the deci¬
sions of the Supreme Court of the

States, the Military Com¬
mander in areas occupied by the
Forces under his command has
United

the

all

carrying

for the
governmental

necessary

powers

of

out

...

to

intricate aspects and

men

for
in

it

has

apparently

that, under our

ury

revealed

not

to

a

gold-bullion stand¬

the

people; that is a Treas¬

secret, and it has been a secret

can

of

Apparently

confusion

money

does

get our gold if we owe

regarding which Congress

not

exact

reports

any

the

matters

may

to,

nevertheless

is

tions

of

contract

and

to

the

use

of appropriate assets against cer¬
tain
liabilities.
For
example,
when

money is made full legal
it, legally, can be used to
settle any debt.
Literally, this
means that,
in so far as law is
concerned, Federal Reserve notes
(not to be confused with Federal
Reserve bank notes), which are
full legal tender and yet liabilities
a

tender

,

ofu

our

can

that

direct causal bearing

a

and banking struc¬

every

ing
to
these
matters
require
prompt attention and correction.
Essentially, the considerations
involved relate to legal obliga¬

be

banks

Federal

Reserve

used

assets

to

as

their

meet

by

banks,
these

deposit, lia¬

bilities.

upon
some
of the undesirable
things that have been taking place

keep itself informed.

anything, while our American

fact

they have

nor

these

in

money

and

mature person
should know that the laws relat¬

May

and far re¬
from, the general reader.

moved

people's

the

of

Amendment

technical

seem

But

other

every

handling

ury's

suspension of gold pay¬

domestically,

Thomas

12, 1933, and the law of June. 5,
1933, which made all our money
full legal tender.
It is quite clear that the legis¬
lators did not know what they
were
doing when they enacted
those laws.
The legal and prac¬
tical difficulties flowing from the

this is another aspect of the Treas¬

nation

occupied......"

is

international

provide for the currency needs

Congress raised no serious ques¬
tions about this procedure, and

each

American

since December, 1941.

ments

v

is

now

the

to pro¬

present system of maintaining an

"These powers include the right

of the area
v

to

point

the American people to* bear
mind

this author knows,

people with a
satisfactory answer.
Further¬
more, just what foreign countries
are getting it and how much goes

they tax the

But the

the field.

in

as

our

ture,

why

vide the American

many

judgment of the most experienced

ard and

functions.

have

here

issues

Just

in

Relating to Legal Tender, Lawful

uses.

Despite legal tender law
(Continued on page 74) -

important

no

knowledge of, and seemingly little
interest

what is taking place

in,

to the issuance of such
Why it has not at
exacted reports from;;the

in respect
fiat

money.

least

Nor, have

Treasury is not clear.

the Constitutional versus interna¬

of the question

tional law aspects

explored by, or expounded
in, Congress. The people's repre¬
sentatives
have
simply let the
been

Treasury operate with a free hand
this

matter, with the conse¬
that not only Congress but
the American people know noth¬
in

quence

ing of importance about what is
taking place in connection with
the issuance of this fiat money.

Apparently only persistent ques¬
tioning of Congressmen by thei^
constituents or more active in¬
quiries by the press can be count¬
ed on to
prod them into what
would seem to be appropriate ac¬
tion in this matter.
ii

pi i

;;i

jiH

since March, 1933, under a mone¬

involving

system

tary
sion

tion

payments.

gold

continue

can

a

The

this sort without the
non-gold currency depreciating in
terms
of gold.' Presumably, it
the gold re¬

could continue until

trial

against the money and de¬

posits declines to such a low point
that people lose faith in the ex¬
changeability
of
the domestic
currency
in terms of gold, at
which time the domestic non-gold

Pittsburgh District it was "destined to'serve. '

begins to depreciate in
terms of gold.

value in

Sons, in

factors

ciation

of

precipitate

can

an.

depre¬

a

inconvertible

cur¬

in terms of a more valuable
currency such as gold.
The only
certain way to prevent such de¬
rency

is to - provide for* re¬
For this reason,- not to

preciation
demption.

mention various others of a more

nature, many monetary
have urged a speedy

technical

economists
the

States—that is,

United

turn to a

There

payments in

of gold

resumption

a

re¬

gold-coin standard.

are

object to such resumption on the

ground
that it might lead
to
hoarding of gold and a subse¬

quent suspension of gold payments
the
attendant > upheaval.

with

There

"fire
can

are

others

who

done

there

In

he

two-story

consisted of real

in' those days.

succeeded by his son,

sole

was

owner

equal partner.

turn

would

then

and

as

of the

markets.

order

In

required-by foreign

and, commercial

the

years.

first

Mellon

As

Consolidations,

a

of T.

The

was

a

new

mergers,

in¬

were

men

(Two-story frame building
,

*

r

,

as

a

home

been

'■•I

J

its founder's

to

monument

moved

had

which

at

Pittsburgh District.

Sons

On

right)

June 30, 1944, the Bank's deposits
.

sources

$627,200,527.

were

*

♦

Bank
and
policies of its founders who pledged its full co-operation and
has

*

vice-president. Andrew \V. MeJlop

»

president until 1921 when he retired to accept^ the

&

Throughout the seventy-five years of its existence, this

The Bank's first board

ment—representatives of Pittsburgh's'impotta&t industry 'and
Andrew W. Mellon was elected-president, and-hk

as

In.1924 the Bank
new

,l*amounted ft) $570,172,814 while re-

r

^

with vision and sound business judg¬

brother, Richard B. Mellon,

the

activities,

■

unfaltering faith in the future of the
Origirfai home of T. Mellon

commerce.

served

continued

commerce

Pittsburgh's industrial

erected

begaa .business with a capital of

$2,000,000 and deposits of $8,491,947.
of directors

made their appearance.

along with the industries which

into

incorporated

national bank

Cheques

industry and

it served.

growing

the Mellon National Bank.

as

specialized service

grew

banking facilities, the house

Mellon &. Sons,

the

the Bank inaugurated its

always in close touch and familiar

broader financial service. To pro¬

vide these

extend

with

brought

corporations, and large expansions re¬

quired

,

world¬

expand, the Mellon National Bank,

to

~

of

to

commerce,

Travelers

B. Mellon,

century

structure

-

Foreign Bureau, establishing connections with correspondent
banks in countries throughout the world. The year following,

head of the firm

Andrew W. Mellon, who had

for six

V

$24,342,258.

By 1904 Pittsburgh's products were reaching out to
wide

\

:

MellouNational

incorporation the

deposits had increased to, $20,981,377 whilc^its re¬

sources were

■■"•
retired

fjy>

r

changes in the industrial

numerous

nation.

Bank's

Succeeded

which time his son, Richard K. Mellon,

this office.

until 1887 when

bother, Richard

his younger

The

mortgages,

Bank under his father's guidance

the

became his

estate

to

Eleven months after its

•

building oh Smithfield., Street.

1880 when Thomas Mellon

Andrew

had retired

secured by emtersement. Loans on collateral

were rare

was

him

Band's deposits; were $600,000. At that; time

insist that

escapes" against hoarding
be provided' and ' that if this

were

modest

commercial paper

security

in 1933, at

v

founded the private banking firm of T. Mellon

the Bank's, business

in 1902

economists who

some

a

In 1874 the

served

structure is
delicate mechanism,'and various
A nation's monetary

a

January 1,187Q, Judge Thomas Mellon, who

from the bench,

.

currency

Richard

of its existence closely parallels that of the great Indus¬

On

j

portfolio of Secretary of the Treasury of the United States#
B. Mellon was president from 1921 until his death

history and growth of this ..Bank during the seventy-five

years

period of sus¬

pension of

serve

i

a suspen¬

It has
been next to the longest period of
suspension of gold payments ever
experienced in the history of this
country.
The longest was for 17
years—from 1862 -to 1879.
Probably no one can predict
with any accuracy how long a na¬
of

^

consistently adhered to tbe fundamental principles

resources

the'needs of

to
..

beginning of

V"T4 -y,

a

'•

commerce
'
-vf
"

and industry

...

•;>

At the
.

•

'•

-i.

i'

hew yeaf^-and looking forward with faith in

the future—that;plqdge i^/enewed.

be
Ul'JOH'j.1

overwhelmingly good
the

United

States

reasons

why

should .return

Owl

■
..»

promptly to
There

are

willing
bullion

to

a

gold-coin standard.

still

others

who

recommend

standard

on

the

a

are

hoarding would be relatively
But
some
monetary
economists object to this type of
the

»

.

•

N AT IO N A L B A N K

gold-

difficult.

on

M E L L ON

ground

that

gold standard

j

living,

been

has

nation

j

:

* **

r

Standard

Gold-Coin
This

<S

Mellon National Bank Building

Question of Returning to a

The

„

PITTSBURGH

:J||

C?enZels

Cyf^u-ucu.

ground that

the typical

gold-bullion standard
usually -allows people to obtain
gold
only
in
relatively
large




MEMBER. FEDERAL..DEPOSIT

INSURANCE

CORPORATION

•.

THE COMMERCIAL & FINANCIAL CHRONICLE

74

It's Your

operate in a vacuum since there
no assumption that an inter¬

was

Money

national

That's Involved
(Continued from page 73)
this could not properly be per¬ proved in principle for submis¬
mitted, and it has not been per¬ sion to the respective govern¬
mitted.
Or a debtor can now ments of the delegates who aU
that
conference.
One
irritate his creditor by paying off tended
involved a plan for an Interna¬
a large debt with pennies, nickels,
tional Monetary Fund; the other
or dimes, since they are full legal
tender.
And, while gold and gold a plan for an International Bank
Reconstruction

certificates

for

they

Develop¬

principle,
Fund

by the participating nations of

ing debtor
obligations.

When the Department of State

released,
and

In

a

that

fact

assurance

for

reserves

Federal

in

of their own currencies
they may exchange for the

sired

of

for

other

nations

de¬

making foreign
theory back of
this proposal is that it would aid

Reserve

The

against their deposits. Fun¬
damentally, it is a question of

various

nations in

chasing

power

assets against certain lia¬
bilities, and does not necessarily
the
question
of legal
proper

stabilization

the

tender.

Money is sometimes made "re¬
purposes" to

bility that nations with weak

concepts of legal tender and law¬
Prior to 1933, Federal

would

the

that
exists
in
our
monetary
structure because
of
the ill-advised legislation of 1933.
accounting

of

dollars
the

and

have

United

wish to

use

profit.

could not

use

There

tion

of

Congress

from

time

criticisms

to

power

tions

with

here,

'. At

New

1944,

a

debtor

milk

the

the

it

as

of loans

are

can

the

but

it

is

perhaps not too
that these are largely

secondary to the issues just
tioned.

creditor

na¬

The

thoroughly;

Bank

an.

shall

men¬

plan for the International

provides

that

each

to

subscribe

certain

a

nation
pro¬

portion of the capital, and that the
Bank can then lend, or guarantee
ln^ns

to

through

mad"

nels,

ternational distribution of check¬

other

whether*

that if there
made

ing

interna¬

some

board, not directly

loaned, and,

to

States

.and

tional

vide

enforce
*

sions.

It

is

probably

that

many,

who

have

and

its

soundness

deci¬

to

say

the

of

that

their

on

than

coun¬

feet

otherwise

they

mucft

be

would

freely, that world stability
hastened and encouraged

more

believed

will

be

in

manner

a

and

to

degree not

a

stitution, perhaps in the form of
an international bank
acting as a
bank and clearing house for the
various central banks, might ac¬

otherwise possible, and that char¬

complish all of

it

that

ity is not involved.
If it could be demonstrated that

these assertions

beneficial nature

a

be

accomplished by an
international banking institution.
Here, too, the issues'are involved
and technical, and the question of
appropriate international govern¬
mental organization to control and
can

enforce the decisions
institution would be

such

of

authorities

There

whether

would

an

be

can

Woods and as the picture has been
modified by the Dumbarton Oaks
Peace Plan announced, in review
form, by the Department of State

as

in

the

case

proposed

institutions

November 20.

on

to be in the last
merely unusually intri¬

prove

analysis

not these aims

or

accomplished through the institu¬
tions^, recommended
at
Bretton

those who think that

are

two

of money

banking would be happy to
endorse the proposals.
The diffi¬
culty lies in the determination of

the Bretton Woods proposals.
these

in the field

and

important

as

accurate, then

of

consideration

a

are

highly probable that most

seems

It

:

<•

f

be supposed, at least
that all these issues will

may

hoped,

cate mechanisms by which United
States funds would be drained off

floor of

for

will be found to extract

multitude of

a

in

uses

be

foreign
form of

countries, either in the
business loans, some or many of
which may not be repaid,- or in
some other form of voluntary or
involuntary charity.
It has been
suggested several times that if we
are to engage in providing charity
internationally it should be done

thoroughly thrashed out on the
Congress, and that ways
evidence

reliable

as

much

possible

as

United States

that the

order

in
can

the proper course to
and, should it be decided

determine
oursue,

that

we are to participate in these
institutions, to reduce to a mini¬

the

mum

the

of

risks

wishful

openly and directly, not through
complicated,
poorly-under-

element

st<?od,

involved

because

thinking and the

the situation.

any

or

devious

and, also,

means,

of

guessing

inherent in

chan¬

mmmmmmmmmmmmmmmmmmmmm

it would

Chartered

The National

to .'pro¬

us

consequence that

a

get

enable

aid to foreign

the case, that international trade
will then flow more quickly and

international" clearing in¬

an

have

will

proper

sooner

Bretton

proposals

in the
i

opposing view, in general,
that the proposed Fund

Bank

tries with

if not most, of those
questioned the value

Woods

participate

has been

will

accurate

should,

The

-

"governmental;organization;
to

Therefore,

people, there is really
reason why the' United

proposed institutions.

up

power

them.

make

good

no

respon¬

we

these

say

to November 20,
apparently designed to operate
without there being any interna¬
with

sound loans to be

are

already have the bank¬
ing institutions anxious and will¬

sible to the people of the various
nations
whose
funds are
being

the

this proposal is

for

sees

trol in the hands of

various borrowing
countries.
Pernaps the ""c h i e f
question thus far raised regarding

Woods, books, issued chiefly against the
Hampshire,
during
July, United States Treasury; and that
two proposals
were
ap-J, it | apparently was designed to

it

as

tional

from

many

with

nations

own

maintaining

for

much to say

Bretton

at

the form

its

con¬

policy no¬
toriously unsuccessful—by an in¬

meeting of representatives
nations

that

financial difficulties—a

|! Monetary Fund and Bank
OD44

effect

re¬

tailed and intricate for discussion

that it would
attempt to purchase
goodwill of nations now in

the

International

an

the

to

constitute

TJhe Matter of the Bretton Woods

Proposals for

of

trol

time; yet that body has made no
move
to rectify
the errors in¬
volved in that legislation.
i

the

to

proposed Fund would be in

ap¬

other aspects
of this question which are too de¬

•

Monetary economists have
brought these things to the atten¬

20

value of its currency.

Closely related have been

or

stabilize

to

with such help

responsible

States

in

exchange weak
which
it
might not

currencies

November

seen.

nations willing to lend to it, and
that each nation should be held

of which
would be

consequence

supply

exhausted

and

law

to

nation

obtain in

of4 the

in

each

cur¬

currency

a

Bank that had

and

be

if not most of the op¬
ponents of the Fund have thought
that it probably would be best for

soon exchange them
stronger currencies—for
instance, for the United States

dollar—as

Just how

vacuum.

Many

the

ity, and it should, be restored as
promptly as possible.
These are merely a few samples

a

up

to

rencies would

Reserve notes had this legal qual¬

mess

peared
mains

for

ful money.

greater

apparent

the Fund

the

rested upon the fear of the proba¬

difficulties inherent in the

chaotic

pur¬

curren¬

this plan, up to November 20, has

ceivable for certain
avoid

of

bring

may

best

each country to
fit, thereby keeping
control over the lending of its own
funds, rather than have the con¬
lend

De¬

recognition by the
Department of State of this situa¬
tion may modify the criticisms of

foreign ex¬
change rates of their currencies.
Perhaps the chief criticism of

involve

]

obtaining

in foreign

State

Dumbarton

those

to

operate in

cies and in the determination and

banks

of

of

who, up to
that time, could visualize nothing
but two institutions designed to

in

use

payments.

"Text

a

Review

portion

currencies

Oaks

Giving Tentative
Security Plan," no mention was
made of the proposed Fund and

which

in

Dumbarton

on

Documents

the tech¬
nical legal sense refers to that
money that is proper to use for
certain purposes as, for instance,
money"

October 9, "Texts of

on

Statements

—a

''Lawful

enforce the Fund's
compel a default¬
nation to honor its
to

or

of their domestic debts,

i

neces¬

Oaks
Peace
Plan," released "on
November 20, the proposed Fund
and Bank were included by name

program for
contributions

the

involves

was

to

power

decisions

partment

In

the

and

the

Bank.

ment.

are full legal tender,
be used only in a most
restricted way to meet debt obli¬
gations—American citizens cannot
legally use them at all in payment

can

government

to supervise it or to provide

sary

be

not

Thursday, January 4, 1945

1799

City Bank of New York

j.\h

Branches

{yllead Office:

.

I

st!

"Fifty-five Wall Street

a?

Bank

Throughout Greater

ojpwManhattan Company

H-

'

New York

New York

^

:'$AAA A*AlA

A

■'

AAAA::A''iA■: AAAAA.A A'AAA'vA- AAA A.

Condensed Statement of Condition

t(

■'MS
Condensed Statement
-

n

of Condition

*

:

of December 31, 1944

of December 31, 1944

as

J AAA A

-v-A

£ I*/

INCLUDING DOMESTIC AND FOREIGN BRANCHES

ASSETS

■

#

.

0

(In dollars only—cms milted)
•IV

J

:

ASSETS

Cash and

LIABILITIES

Dutfjfom Banks and Bankers

U. S. Government

Cash and Due from Banks and

it

Bankers.

•§;»$

Fully Guaranteed)

Deposits

';

871,882,875

United States Government Obligations

(Direct

i

,

^

.

2,409,240,200

Obligations of Other Federal Agencies.

41,379,228

11

State and

l

Other Securities

..If:

I

A

H

.

Municipal Securities.
......

Customers'

'if

69,889,628

•

,

Liability for Acceptances.
.

*

.

A

....

901,404,243
5,488,617

7^433,420
5,850,000

.

«

.......

i

*

«

«

*

.

7,000,000

#

•

•

.

*

Items in Transit with Branches
Other Assets

.

•

«

*

.

•

Total

•

•

•

•

«

«

•

•

.

Unearned Income.

i
.

.

.

•

Dividend

•••••!

«•••...••

4,030,000

•

Gordon S. Rentschler




,

,

.

.

.

Owned

.

.

_

15,339,652.65

345,132,608.43
5,207,295.51

,

v;A

.

207,676.46

(Less Anticipations)

3,053,283.89
3,490,262.84

.

$1,170,340,oYhOl

-

—:—:

'

Undivided

.

.

«
,

.

Dividend

.122,500,000

,

28,610,465

228,610,465

.

$4,469,686,465

.

Total

W. Randolph Burgess

.

3,

.

.

.

.

•

.

. • •»

.

•

&tcial

20,000,000.00

•

j*

.

Liaibilil^lReserve for

Of the above

*

*

*

•

.

,

5,049,465.41

.

.

•

.

.

.

3,901,258:94

•

.

.

.

.

.

Taxes, etc.

,

■

'

'

'

■

1'®'.

'•

A: -''

6,813,076.31

■

i—

,; -■.

r~^

A

■

aris^ts $256,287,495.80

?%'

■

.

"
■

^

$1,170,340,024,01

•

Rci^r*i) System

Member Federal

500,000,00
1,099,656,423.84

.

•

are

plcd(?eil to

purpose<|'«fUtl certain of the above deposits
'

. i.

•

•

,

"

A

.'

.
•

m

'

.

52,4fV,281.62

.

•

•

,

.

%Wn

•

.

12,408,281.62 $

^

Jr.

\

'

...

•

if'

President

•
,

2,011,517,89

Checks

C|i0tanding

Acceptances

-

Wm. Gage Brady,

.

C|i|tingencies.

Certified and

Other

$20,000,000.00

.

Paype January 2, 1945

Deposits

except those
prior to occupation but less reserves.

Vice-Chairman of the Board

Pr^i^i

Reserve for

.$77,500,000
•

.

LIABILITIES

ym.
||f £ .

,

other

of the Board

,

:

.

Surplus

21,468,909

etc.

includedjas of December 23,'1944,
are

5,840,637.33

„

12,783,063.29

|||
Capital.

$924,380,614 of United States Government Obligations and $6,846,830 of other assets are
deposited to
secure $881,338,109 of Public and Trust Deposits and for other
purposes required or permitted bylaw.
(Member Federal Deposit Insurance Corporation)

-Chairman

•

E%t|te

1,452,707

i

Interest, Taxes, Other Accrued

A

t.j

.

•!.AA*?:A.

Undivided Profits*

are

.

Liability for Acceptances

-

Surplus.

for enemy-occupied branches which

.

Unearned Discount and Other

3,326442

Figures of foreign branches

.

'

Customers'

?;•

$4,469,686,465

.

...........

Mortgages*

Reserves for:

2,122,859

•

.

.

•

!&

Capital

30,795,901

.

Other Real

9,052,372

2,329,970

229,027,820.77

Ilouse!|0vvned

Banking

.$11,382,342

.

•

.

Disq^jints

Real Estate

Less: Own Acceptances

Expenses,

iI

|j

Loans and

Acceptances
.

Securities^

$

550,257,722.84

.

.

Other Assets

&

■If

on

in Portfolio

Ownership of International Banking

Bank Premises

-V

113,873,052

•

!

Stock in Federal Reserve Bank.

Corporation

11
I

,

a

.

Real Estate Loans and Securities

iSf '•

Loan Deposit $744,588,040)
Liability

and Bills

.

Other

....

Obligations

Other Public Securities

Loans, Discounts, and Bankers'

Acceptances

P.

.

$4,205,072,012

(Includes United States War
..

.

.

or

«

''

■

'
.

■

-

secure

are

'

public deposits am] for !

preferred
-

as

provided by law.

A"

;

;

<

"

Member Federal Deposit Insurance Corporation
■■

mmmmmmmmmmmmmmmmmmmmm

Volume

Number 4348

161

This is largely new financing,

OUR

Groups
to

since the company plans to ap-

REPORTER'S

;.

least, or,
perhaps more correctly, until Sec¬
retary of the Treasury Morgenlhauls

is

,{./Y.':

v.;.'

shares

considering

be

Formed In Detroit

of

$21,000,000

re¬

of

utility

While
away

up

railroads

the first

were

market
new

ployees

Penobscot

{' Mr. Carr and Mr. Lawson

to

formerly

equivalent amount of

an

the

year,Ymany prospective
undertakings are shaping
for the weeks ahead.

The

expected

would be

company

in the mta^ket with the turn

dividend rates.

and 7%

6%

the

Co.

Mr.

of the

financial

district

has been announced by the Asso¬

ciation of Customers' Brokers. Ac¬

Carr, Roy F. Chapin, Valette R.
Eis, general partners, and Seward
N. Lawson, limited partner.

ing preferred stocks which carry

Utility Offerings Ahead

in

Group Insurance

The first plan of group life in¬
surance
instituted
by the em¬

engage in a securities
business. Partners are Howard F.

And Potomac Edison Co. is re¬

generaj funds.

offices

with

ported looking over its outstand¬

added to

-Y

Building, to

applied-M plant expansion,

be

Get

(Special to The Financial Chronlole)

'

DETROIT, MICH. — Carr, Chapin & Company has been formed

4s

first

reconversion, fct&, and the balance

to

favor of the issuer.

this week's action
in refus¬
ing to review a decision of the

to

Customers' Brokers

re¬

,yy

4Hs.

rea^yytfor market, part

preferred

legal batteries unearth a
new premise upon which to base
a new action, it looks as though
the question of taxability of mu¬
nicipal bonds by the Federal Gov¬
ernment has been cleared up in
At any rate,

any

$5,500,000 Of sinking fund

and

cumulative

of.;'$4.50

Said

funding

Servel, Inc., has 60,-

Meanwhile

000
For the time being at

pic¬

new

in

Carr, Ghapin & Go.

which

securities

involved

be

.

tures.

REPORT

of

reported forming

are
new

financing
operation projected
by Kentucky Utilities Co., which

| the balance to

finance production

seek

would

current

reduce

ply

$300,000
liabilities and

75

THE COMMERCIAL & FINANCIAL CHRONICLE

x

cording to President Richard G,

Horn, the required 75% of

mem¬

bership have applied for the ben¬

were

efit under the Association's

with Stoetzer, Carr &
Chapin was with Baker,

will

which

be

written

Life

the

Weeks & Hardin, and Mr. Eis with

000,000.

United

Hornblower & Weeks,

preferred, approximately $6,-

States

policy

by

Company in effect Jan. 1, 1945.

Insurance

1

of the Supreme Court

Second

Circuit

Federal

Court,

which held that bonds issued by
the

Port of New

ity

are

York Author¬

Federal

from

exempt

taxation, is regarded as another

CHARTERED

1

1853

important victory for those who
have
and

others

Morgenthau

Mr.

opposed

who

deter¬

seem

mined to obtain a ruling in their
favor.

It

#tatrs Ernst

*

should

give new life to the
municipal market, which has been
rather

laggard in recent months,
partly, of course, because of the
absence of any need to finance in
the prevailing absence of mate¬
rials and supplies needed for new
projects.

11

of Hrm fnrfe
'

dearth

of

new

<-gg TRUSTEES

offerings in that direction seem¬
ingly

stems

from

however,

part,

in

i
;
jog$t sloane

high court's action in the Port

Authority
of

since there have

case,

not been any

RESOURCES

.

■

Frank C. Ferguson,

Cash in Banks.

\4&si<(ent

v.: "YYYyYY

$ 26,216,083.42

.

.

«

•

.

.

•

•

§

•

•

•

«

»

sential transportation and terminal

...

•

•

»

.

♦basklie henry

™£s.

Lead the Field

; ; Rails

Railroads

were

first

the

Lord, Day t" Lord

from the starting line as the New

Year; in corporate financing got
Bids were taken on
offerings
yesterday,
course, to approval by

1

;

*

i

■

•.

[ ;

7,010,668.46

•

4

2,947,500.00

840,000.00

.

4,079,293.53

»

*

*

%*•••#*.

.

.

'

.

><♦ **• u* •*
Accrued Interest Receivable .•.

/

: ■

.

.

•••••

•

...

00

#

\

?.

,

Mortgages

Banking House

,

1

-

*%gwyer

-s

*

1

hamilton hadley

issues involved.-

new

Lcdyard &M,(burn

;

Real Estate

...

l. redmond

■

the Interstate Commerce Commis¬
sion of the

:

.

ro^nd

......

Federal Reserve Bank Stock.

,

-

w,'

-

way.

large
subject, of
I

RcJve '

Naval

george deforest lord

away

.

United States Government Obligations
Chicago

projects planned by the agency,"
when the way is clear, naturally.

Yf

p

91,121,535.50

State and Municipal Obligations

,

■

45,397,167.01

Other Bonds

,

Y

'

.

Loans and Bills Purchased

Williamson pell

Chairman of

1

!

,

'

Boari'

the Port Authority, said the court's
action "assured financing of es¬

two

December 31, 1944

:

'

V" :":-

^y Y Y; t
x

sizable refundings

-Y

■.

either.

late

under

v Statement of Condition

^

S:. §|lil||{;

jomn j. phelps

disposition to await the

a

«•

|

YYYYY..\Y{Y Y" Y-YY..

YY

..

veritable

The

(Emiqmtut 1

»

503,414.15

•••'•'.

•

,

-

-

'

1,600,w0.0Q

-

^

•

...

.

o

.

•

•

r\r\r\ aaa r\f\

•

•

$179,715,662.07

.

Total

.

$

2,000,000.00

francis t. P. plimpton

«

'

Presumably
size

undertaking,

bidding for Lousville
ville's §53,835,000 of
and

•

Jii'y Bcbevone, Stevenson,*
Plimpton & Page

the
the

of

because

the

of

Nash¬
first

&

be^amin

new

But, it was indicated by
liminary inquiry, that any

strong

Army

-U- s.

of

would

road

the

pre¬

of

§11,000,000

'

;

-

of new

4

and

bidders

.

•

•

•

.
.
.
.
Undivided pfofits

S

;.

Air Forces

•

•

•

\ Surplus

'

•

•

Y

•

tr

likewise

Forrest butterwori'h

.

JAhl^

Y'

detfjieux

>

was

,

'

■

2,551,245.56

.

.

.

•

*_ ♦

'■

T

.

*

.

.

.

.

-:-v.."■■■'

>

-

Y

.

:

•*
■"

;

;

Pennsylvania RR. Next
baskr harris

The next

major undertaking is
scheduled for next Tuesday, when
the Pennsylvania RR. is due to

1

'

,

rVSW&sident, J

.

ed States Lines Co,

{49,355,000

j

par

v,

1
'*.■ ' • ; i

'

\

000 of

1

*

'

bonds due in 40 years.

'

'

j

31/2%^,
Here

•

"'S'

is not to exceed

.v.y

'

•'

'-.mi

again it looks as though
of the issue involved

scale

down' the

groups

entering

will

used

be

james m. trenary
Vice-President and Secretary
Assistant Vice-Presidents

.LEtAND C.. COVEY

an

Y

bentures.

{

Two

Stock

Dealers
two

were,

sizable

Deals

stock

to

look

financing

operations to reach market before
the end

of the week.

Il^RY

B. HENZE

mLY;

Due

inclined

.

MTYX'
J

!

a

illpIRY G. DIEFENBACH
iMfftuR H. ERB

issue

4^2%' de¬

4-year

""

'

•

.

BERKELEY D. JOHNSON

V /
LAWRENCE C. MARSHALL
"

•

vi

•••sf

that

the

Indications

group

shares

of

new

5xk%

cumulative

preferred would bring that issue
to market-.today.




'

'

HENRY E. SCHAPER >

*H. JOHN SIMMEN

HENRY L. SMITHERS

■-

THOMAS J. MADDEN

FRANK J. KEELER

WIILIAM J. MILLER,

.
*

\
*

Serving with the Armed Forces

;

LLOYD A. WAUGH

MEMBER FEDERAL DEPOSIT

ARMITAGE MORRISON

.

JR.'

'•

.

STERLING VAN DE WATER
FERDINAND G. VON KUMMEP,

^

Assistant Secretaries

FREDERICK N. GOODRICH

..

IRVIN A. SPRAGUE

CARL O. SAYWARD

INSURANCE CORPORATION

^

*W. a. W. STEWART, JR.
'

'

handling

Monogram Pictures Corp.'s 100,000

...

'

ELMO P. BROWN

.

MARTIN

GEORGE MERRITT
v
FREDERICK M. E. PUELLB

ELBERT B. KNOWLES

;; »PAUL CAMPBELL, jr.

%

"• AUGUSTUS J.

GEORGB F. LEE

'

were

; •:

of

Proceeds

bids.;
redeem

to

outstanding

number

'

Vice-President

\ '

'

,

(

~

\

Vice-President

•"

pell, President

benjamin strong, Pirst

alton s. keller

•

scope

will

for

,

williamson

the bidders will name the inter¬
est rate which

OFFICERS

-

refinancing oper¬
ation the road has specified that
In this large

of

■

bids

open

the

j
!

Government and other securities are
public deposits and for other purposes required by law.

■»

on an issue of $51,782,general mortgage series F

••.

value of United States

pledged to secure

•,>

(

|
!
.(

' 1 >»,UOZ.U /

A

.

:0;.■■

.

3,909.62
500,000.00

1179 715 662 07

.

vs.."p...

■■

.

1,228,546.52

•

'

,

■■''K

.

.

.....

A 0tai

:

•

.

146,655,180.19;

.

.

i

' 776,780.18

-

{{•

-

'

,

Dividend Payable January 2,1945

;

y:r".

:.

Y

•

•

•j•

.

Unearned Discount

'

' '

• , ♦

•

26,000,000.00

.

»

.

•

....

•

Reserved for Taxes, Interest, Expenses, etc..

:

EBWiN s. s. sunderland
Wppwii Polk Wardwell
•-^Siwderland & Kicndl
'■ ■■■'

assured of ready market.

Deposits

'

c. Josephs -

.ri^SXr^r

:

J

■ General Reserve

,<

>

H. brewster, jr.

*

.

§2^'A

first

lengthy aggregation

more

...

.

LIABILITIES

.

'

Capital StOCK Y

y*-,*A*uiwai(ia<:r, Wicljcrsham & lajt

new
move

bonds, brought out a

mortgage

g.

.

Washington Terminal Co.'s is¬

of

-

,
,

*JC^ hay whitney

;

along in satisfactory manner.

seen

i

,

involved.

groups

much

~

Vice-President

F 3%s,
due in 2003, was not aggressive
from the standpoint of banking

sue

,

series

refunding

bonds

.

■

■

V

•

.

'

■ ......

THE COMMERCIAL & FINANCIAL CHRONICLE

76

Historical Background

An

cuts and fits

shares for
special or general needs for your
clients, particularly when you are
faced with the problem of new
and

ment, company

become well posted,

fied

you

dnd expertly managed fared

alluring to recommend.
Our experience has been that
we can satisfy almost any client's
requirements—from the largest to
the smallest—with some type of

much

better-than-average results such
as
we
have experienced over a
period of years. <

nothing

is

there

Once you

custom-made suit.

a

should be able to show the much-

very

forts to invest

There is
worker

a

a

cycle Works

ideal investment medium and our
clients have benefited handsomely.

collecting, he finally

subject, I think
you will find these securities just
as
easy to use in setting up an
investment program for your
clients. Investment company shares
are so varied in their application
that you can fit them to your
client's needs as easily as a tailor

cause

investment company

security. For
these shares have proved an

After studying the

he

■

money was

instead of

gun

So

with

a

of

bicycle.

days of
looking for
good buys in standard stocks, we
always wind up with a better buy
in

these

in

us,

bargains

rare

this

put to work through¬
'

;

:

;

t

oldest

they

s|ill
of

re¬

their

Scottish
Scottish
etc., but

invested in securi¬

are

ties

instead

farm

mortgage interest rates de¬

clined

company

share.

8%

from

and

of

mortgages.

As

the

10%

pioneer rates of

to

5%, most of the

'

'

Scottish

Railway

Light

&

One

Securities

by the

,

had

a

well.

Preferred

dividends

by

have

1929. Lehman shares today
selling about 5% higher than
their
1929
offering price,
and
stockholders who still have their
are

com¬

original
shares, have
pocketed
$17.69 in dividends. (3!/2% for the
period on the basis of the original
looked
British
the fundamental
offering price.)
How many pri¬
policy of investing primarily for vate or
professional investors have
income.
Most of our investment
done so well?
How many of us
companies answered the public here have
anything like this rec¬
clamor for appreciation—appreci¬
ord for the same period?
ation regardless of income.
They
issued new securities right and Past Errors and Present Protective
boom.

They

copied

British

the

set-up, but they

sums

real¬

stocks at the

common

mar¬

In

millions

sent

Hundreds

top.

over¬

of

-'-Measures

-

organized

capitalizations,

In

levels.

peak

few

a

y)

moments

I

will pre^

were

the

public, and

far

more

as

of them lost
public. •

many

than the

sands

is

probably
The
market value of the : company's
issues at the peak was over a

STATEMENT OF CONDITION DECEMBER 31, 1944

their

sav¬

industry re¬
ceived"
unfavorable
publicity.
Government, investigations : dis¬

States Electric
case

lost

of investors

ings.

ten rockefeller plaza

notable

in any mushrooming in¬

as

dustry
some
investment
com¬
panies
were
operated
by
un¬
scrupulous 'individuals.
Thou¬

ignorant
about the hazards of leverage as
managements

some

Just

cases

many

whole

The

closed

Central States Electric Corp.

.

Corporation, formed in Octo¬

at the top of the 1929

came

Central

ASSETS.

noteworthy example is Leh¬

A
man

expan¬

sion of American investment

Most

CONDENSED

recognition.

Corporation

Lehman

ber;

Unfortunately, the great
panies

less universal.

or

more

record deserves real

comfortable margin.

a

of judgment which

errors

been

Since that time their management

been paid without interruption for
40 years—and have been earned

at

IOO BROADWAY
*

companies benefited greatly

surprising figures on
were lost because of the then lit¬
management results for the indus¬
tle
understood
leverage
factor. try as a whole, but to conclude
The trusts were blamed for the" my ( Comments on the historical
huge losses that were inevitable aspects, a few words must be said
for companies with highly pyra¬
about past .errors_and abuses. NV:

Company
'

similar

abuses

found

in

earlier

some

to

those

insurance

companies and savings banks,
f
Corrective
; legislation
was

.

.

/

Cash and Due from Banks*.
United

States

Government

\

\

...

Loans and Discounts

J.

.

.

v

;

Obligations

Other Bonds and Securities

}

:

,

.

* ;

;

.

«.

Equities in Real Estate
Customers'

;

...

.

>•

*

*

Liability for Acceptances.

;

-

'.

;

..

.

.

.«•

75,631.43

.

.

MAIN OFFICE:

321,283.48

.

.....
.

1,206,104.41

s \

.

2,086,112.96

\

'

.

COMPANY

;196,120,055.71

.

Interest Receivable and Other Assets
{-

BROOKLYN TRUST

<20,871,753.89

,

.

.

.

;

' 438,608,355.08

4

Real Estate Bonds and Mortgages

j

$143,427,203.90

..

.."h.-

*

fi

177

1

ry

1. ^fv'. .V

Capital

Surplus V.

...

Undivided Profits

ifsf'i '.

*

*

;

Dividend

:

.'

.

."

.

V

.

Payable January 2, 1945

T'.'

•

•

*Vy.-. *• 1

•

»•/.

i; "-3

/ RESOURCES

8,237,381\40

*

.

*.

.*

*

.

•

$15,000,600.00
Cash

$53,237,381.40

on

.

.'

.

...

.

•.

.

.|

-.

.

.

.

.

.

.

.•

5,913,334.83

:

Hand and due from Federal Re¬

Bank and Other Banks

serve

j General Reserve

.1

•

* 30,000,000.00

:

.

'New York, N. Y..

Summary of Statement at Close of Business, December30,1944

4

;

;
.

V

26 Broad Street

Montague Street

Brooklyn, N. Y.

'

i'

•

NEW YORK. OFFICE:

$802,716*500.86

LIABILITIES

U. S. Government Securities

525,000.00

State and

i

371,808.86

Other Securities

/

4,420,217.69

,

.

Municipal Bonds Y

$

.

'

.

,

44,044,220.50
152,921,563.11

'5,435,047.16

.

.

#

.

«

.

3,553,833.33

♦

•

•

32,378,210.49

'

Acceptances

.

\

.

./;;♦

Reserve for Taxes and Other Liabilities

•

V

•

_

•'

.

-'V

Deposits.

}

>.

-■

>

.

.

.

%

■ •

i

.

.

•

•

•

;

v

'

/

.

t

•

.

*

»

.

-

•

;

:

».

•

*

.

'•'

,

•

.t

oans

v...

r

Bank
;

$802,716,500.86

r.

.

..

.

and Bills, Purchased

onds and

738,248,758.08

•

Mortgages

#

the balance of the General Reserve

plied

assets.

reduction of

as a

'. V-'V-V'

United States Government obligations and other securities carried
ment are

pledged

to secure

deposits and for other

trust

shown separately but •Vyas

account was not

at

i

-

*

v

3,946,321.52

*

Other Real Estate

♦

.

$244,554,548.36

state¬

Y

•

y•

i:

'• 'v.

•

'••••

••

"

• y

/

:

•.

ralph s. damon

v

..'v;•

':'-

'1

'v.President

'

New York

v-1-'?

v.,

X,

...

Colt's Patent Fire Arms Mjg. Co.
'■

arthur a. ballantine

.

5

Goldmark & Loeh

"

..,,

Dividend
-

L-.

..X,

SETON

PORTER;*

Products

■*

Corporation:

fi

"

.

-1 •*"'

,

<

>

-

'

'"

horace hav.emeyer, jr. /
Executive Vice-President

i

The National

*

-

*

'

/

V

T

,

Sugar Refining Company

American Brake Shoe Company

President, Socony-Vacuum Oil Co., Inc.

»

.

■

i-

•»-'

.

.

As

Company

•

-

-




.(

.

s'i

■ %-

..

.

.

h-

'■

■'

..

V

164,000.00

.

Expenses, etc.r
.

667,964.19

,

■*.

,

1,477,644.71

.

,

.

227,990,711.97

1,054,227.49

*
V

.•

.

.

'

y

required

Member of

by

layv, Urtited

.

States

State and Municipal bonds "carried

-

-

pledged

'

to secure

at

Government

and

$57,581,166.36

are

public deposits and for other

purposes.

Com Products Refining Co.
: ;
..

*

vanderbilt: webb

New York

;

"

:

One

of the Oldest Trust Companies in the United States
MEMBER

-

5.

.

8,200,000.00

$244,554,548.36

morris sayre

Executive Vice-President

b. brewster jennings

-

«

.:,C;

President

American Re-Insurance

Vice-President

.

$

•,

•

New York

; William f. cutler

.

•'

y: 5,000,000.00

Contingencies

Reserves For Taxes,

•

President, Natiotial Distillers

*7 "

*\

•

»

payable Jan. 2, 1945

Deposits

•

o

:

Reserves for

Meters

New York

•

v,

.

robert c. ream

t alfred a. cook
President

;

samtltl h. ffsher
Litchfield, Conn.

william hale harkness

Cook, Lehman, Green man,
i

•

'

-

john e. bierwirth

t; jI

t

'

f

harry t,
•

United States Rubber Company

^

Root; jClark, Buckner"& Ballantine
■

.francis b. davis, jr.
•Chairman of the. Board

v

•

Undivided Profits

howard w. maxwell

American Airlines, Inc.

graham h. anthony

LIABILITIES

VC'"*., '

Surplus

Vice-President & General Manager

New York

■

■

Capital

musTEESfff^,

'

malcolm p. aldrich
••i

1,010,585.24

A

ap.

,

"•••

1,000.00

.

1.:

■-

$196,742,474.04 in the above

.

v

.

x

United States Government deposits of $l81|456',66.7.64*and othejr-public and
purposes required by law.
:
7

"

1,263,767.01

if.-.-';

Buildings

Other Resources
In pre\ious Statements

the Federal Deposit Insurance Corporation

in

cascade, invest¬

1929

After the
ment

Co.,

Its
good one. Man¬
been conservative

mided

madison avenue andmotft street

dollars

1,000-to-l shrinkage. Har¬

a

of leverage in reverse.

the

of

started in Boston in 1904.

was

record has been

ket's

New York Trust
if

forebears.

oldest American investment trusts*

ized in

*

'

million

a

idea took hold rison Williams owned the major¬
slowly after the turn of the cen¬ ity of the stock, saw its value drop
tury. In the beginning our coriP' from over $900,000,000 to zero.
panies were patterned after their This is the most horrible example

left, invested the huge

mmmmsmEmmmmiiMi

than

less

1942,

In the United States the invest¬

corporate

hri

"MKT TF*

'-■■■

i

names

now

when

investment

some

and

companies
descriptive
original activies, such as
American Mortgage Co.,
Investors Mortgage Co.,

be¬
machine

a

the

tain

gave up

got

medium

ef¬

Hun¬

invested

were

offering better yields.

Large Scottish funds went into" agement has
farm mortgages in this country and not
greatly publicized/ but
during the 1880s and 1890s. Some shareholders have fared extremely

near

always

this

out the world,

Mandl Bi¬

speculate.

or

millions

of

through

story about

pre-war

the Fritz

at

individual

than

better

dreds

Vienna. Each
night he sneaked out a few parts,
hoping that at the end of a month
they would add up to a complete
bicycle. But after two months of

us,

of

It shrunk to a low

billion dollars.

ties

canny Scots found that large ag¬
gregations of capital well-diversi*

(Continued from page 58)

selections

Scottish funds switched to securi¬

Investment companies originat¬
ed in Scotland in the 1880s.
The

Option On the Market

of investment company

Thursday, January 4, 1945

MEMBER

NEW YORK

FEDERAL RESERVE SYSTEM

CLEARING

AND

HOUSE ASSOCIATION

FEDERAL DEPOSIT

INSURANCE

CORPORATION

THE COMMERCIAL & FINANCIAL CHRONICLE

posed on banks and trust com¬
panies.
So the name was offici¬
ally change to investment com¬
panies.
Eliminating
the
word

passed.
Most Vf the investment
companies voluntarily aided in
the framipg.pf the new laws. To¬
day
all
investment
companies
operate under Federal regulation.
They virtually live in glass pouses
and every possible safeguard has
been provided against fraud and
misuse of funds.
The public's at¬
these

towards

titude

trust- should

sions
true

,

to

S

of the portfolios provided

a

large mmargin of safety.
f
The continuous expert supervi¬
sion
more

of

funds

these

marked

shows

results

even

longer

over

ridden

markets—net

assets

57

of

investment

29%

companies were up
compared with the Dow-

Jones' 22%.

Vr<7

..

,

shown

group

more

year

,

.

During the past
years in our war-

periods of time.
difficult

companies
startling in¬
in assets over longer pe¬

o m e

have

bal¬

the

individual

gained 29% during the 14period. , Please note -that
these are all gains.
creases
During the
riods.
Here is the record from same period the Dow-Jones Aver¬
1930 to. 1943: 77-'v-Y :Y7;-7;7:77Y: aged declined 23%.
:> Loomis-Sayles
This should be proof enough
Mutual
Fund,
that these
companies do better
up 190%;
,
than the market Averages. < We
General
American, Investors,
up 136%;
•
report figures on all the individ¬
State
Street
Investment, iup ual companies in our year-book,
I have a copy handy if any of you
Lehman Corporation, up 91%. — want to see it later.
In passing

time

same

in

companies

Thirty-nine

7a 7

as

(Continued on page 78) '

,

.

1943,

28%. The

showing of the investment
companies may seem small, but
the Dow-Jones Average is a fully

service not rendered by
companies.
It also
implies the same restrictions on
security transactions as those im¬

plies

...

the

better

im¬

trust

Performance

Stock Average went up

present operations of these
companies.
The reason: this is a
word

public

ance

At

diversification

58 combined funds
showed a 32% gain in net assets
while the Dow-Jones Composite
In

the

misnomer, t The

the

field.

has

referring

impres¬

performance records on the
58 leading companies, published
annually, show the good and bad
management results of the inindividual companies.
This is the
standard
reference
data in the

the

trust"

when

omitted

of

use

"investment

phrase
been

the

correct

to

Our

rising in price., Some of them are
selling at the highest prices on
record,—even
over
their
call
prices.
Throughout this talk you may
that

much

erroneous

about the
functions of these companies.
with

companies

steadily improving.
Many' in¬
vestment company preferreds are

noted

do

the

wide

five

is

have

of

some

preferreds.

a

THE

position whereas the in¬
companies had about
8% in cash and .15% in bonds and

invested

investment

CHASE

vestment

National BANK
i

j.

i|; STATEMENT

.

CITY OF NEW YORK

OF THE

OF CONDITION, DECEMBER

M:7!Y7Y77,;77:

.

.

;

7;YsY7Y7Ev.Y 'tjYY;' ';;77y

*

RESOURCES
"7 7'''

*

'•;,»

:

7''

'/ 'vk:",

V/"

". '

.

'

•""

'

' V

-

f' •' '

Brown Brothers Harriman & Co.
PRIVATE BANKERS

Cash and Due from Banks

Y.

NEW YORK

U. S. Government

BOSTON

PHILADELPHIA;

*

fully guaranteed
State and

Statement

*.

Obligations, direct and
,

Municipal Securities

of Condition,\December 31, 1944

Other Securities

.

.

.

;-2-,899,834,061.16

.

.

.

f

.

I

7.

.

.

.

900,689,410.72

$

Y

108,605,889.49

.

_

135,574,896^74

ASSETS
Cash

on

Hand and Due from Banks.

United States Government

7

■,

State, Municipal and Other Public Securities*
7 OtherMarketahloSecurities

.

.

Customers'

Mortgages

5,018,425.29

38,982,821.59

...

.

.

7

v.

Banking Houses

6,566,439.66

^

.

.

Stock of Federal Reserve Bank,"

.

.

.

Y. Y Y.

.

...

.

Customers'Acceptance Liability

liability*on' Acceptances Y . . . ' 4,-724,091.63'
!
7 *.Y VV-"7"
*537,738.23

Other Assets

,

Y"" 11,470,847.95

Accrued Interest Receivable""Y * % *Y" YY Y

33,703,938.87

.

Loans and Discounts*.

;

1,041,046,484.2 3.

Loans, Discounts and Bankers' Acceptances

$ 38,129,178.84

.

Securities."7^7"'*59,515,926.73

6,656,246;6l

.

.

Y

.

.

.

34,941,796.76

.

3,983,963.07

; 7s

\ 7,050,000.00

'

.$180,612,121.18

**:

!

1

I

!

1

Deposits^-Denrand
~"Deposits—Time .

.

.

.

,

.

$

...

.

.r.

.7

..

;

.

.

.

; f.

.

•,7',*"T

'

Capital Funds:

Thomas McCance

.

•V.C.--.Y

to

J

Secure

*

•

'

' '

*

*

y

.
'4

f

PoMfesTic*AND

'

.

-

"■* ; Y.*■ Y'■*.

■

*

'

1

f

'

"*■*

4

|

.

• t

*

,

♦

■

.

•

f

••

,';V

4

: 7Y i'Yy'Y■'V1"1

•

^

.124,000,000.00 ./ 7

;

Profits*

1

1

-

'

.

$li 1,060,000.00
♦

.

.n

»

■■

■ 1

.

.\-(.w

v

-

49;800,385.68-

:

;

;

/

;

r

»

,

"

4

Payable February-1,» 1945

.

284,800,385.68
*

♦. * . •

Contingencies' 7

iC;.it

.Y", .7y .'7v

i';

-

5,i80,000.00

•

''v'Y'-Y'7 Y

.

.

.

.

*•* •'

:

11,338,137.44
l".
-Y';*.•';

7

7.Y*. ^/:YY;'Yvv,-c = «*

•••»Y7/Y-\

YY

■*•%■.

11,240,827.64

.

Liability

r

4,835,219,257.93

Acceptances Outstanding• $ 11,563,912.27

as

Portfolio

Endorser

on

4,315,828.12

Acceptances

Y

7,248,084.15

y

Howard P. Maeder

.

and

'

♦Charles W. Eliason,

Y y.Yi ;Y.

Reserve for Taxes, Interest, etc.*

Deposits.

Purchase and S.ale
Securities

of

*TI. Pelham Curtis

/

David G. Ackkrman

Ernest E. Nelson

Jr.

Foreign Bills

•

•

•

.

Y.

124,332.72

.

♦Donald K. Walker

Charles F. Breed
v

Alister C. Colquhoun

■

♦John C. West

■;

Other Liabilities

«

4,852,930.10

•

Assistant Managers
Mkrritt T. Cooke

.

.

Arthur R, Rowe

♦Edwin K. Merrill

William A. Hess

Herbert Muhlert.,-

Joseph: R. Kenny

"YY-':

L. Parks Shipley

Arthur K. Paddock

.■

■

Gale Willard
-

United States Government and other

IIarry L. Wills

to secure

Comptroller
•

-

Arthur B. Smith, Auditor

==

*Now in Government Service.
-

examination and regulation by the
Superintendent of Banks of the State of New York and by the; Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and ex¬
amination by the Commissioner of Banks of the Commonwealth of Massachusetts.

trust

at

$1,265,557,440.00

y.

•

are

pledged

Deposits of $1,094,886,463-41 and other public

deposits, and for other purposes as required or permitted by law.

i

Private Bankers and subject to




$5,160,003,955.66
•

securities carried

U- S. Government War Loan

funds and
George E. Paul,

:

mil k;-.'

•

♦Eugene W. Stetson, Jr.

Jr.

Joseph C. Lucey

,U^

'ir&

William F. Ray

Tiiomas J. McElratu

.

James IIale, Jr.

as

1

"

'.'I.

-

tor

Managers

Licensed

?

^

Less Amount in

F. H. Kingsbury,

'

\

Investment Advisory Service

Knight Woolley

Edward Abrams

4

d

r

*

Loans. Acceptances
Letters of Credit

Commercial

Brokers

II. D. Pennincton

E. R. Harriman

•

•

^

•'

.LIABILITIES

i

Surplus,

7 Undivided

Foreign Banking

.

Deposit Accounts

Ray Morris-

...

•

4

r

*

*

*

'■&-

Capital Stock.

Reserve for

Louis Curtis

*

*

i

13,605,283-54

Complete Pactlities for

Stephen Y. IIord

Prkscott S. Bush

*

f'<\-

facilities

.

•

3,583,919-27

.

..

' *\V. A. IIarriwan

Thatcher M. Brown

' ■'

1

*

Y

Dividend

Moreau D. BRown

.

,<

- -

Pledged
Required by Law.

-

partners

.

.

71,71?.54

2,000,000.00
.11,605,283.54

as

.

.

,

.1,500,000.00

U. S. GbvernmcarSccurities Par Value $700,000 are

Deposits

.

.

r

4,539,703-17

$180,612,121.18

Public

., ^

.

•; n

510,626.52/

Expenses, etc.* .YY.Y
Contingencies . . .
7 ...

Capital *, .. . .
Surplus ....

.

.

S5,160,003,955.66

Accrued Interest,
Reserve for

.

.

Other Assets

$" 5,050,329.69

.

.

.

Less Held in Portfolio. 7

.

Other Real Estate Y

•

$156,583,729.18
7' 7 ' >' 4,311,685.75 $160,895,414.93

•

Acceptances

'■

LIABILITIES

Member/Federal Deposit Insurance

Corporation

,

,

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, January 4, 1945
points which follow..

An

Option On the Market

companies with the

to

well

gadget demonstrates the
principle of leverage better than
anything I can tell you.

Leveige

of

Explanation

use

of

"the
gained by
Applied to in¬
it

define

would

I

combined
white

as

the

:!"/■

.

Com-;
pimy B

pany A

$22,000

$22,000

20,000

v'10,000

2.000

12,000

2,000

12,000

Represented by:
Preferred stock—
Common

stock____,_____

Common stock

outstanding

(shares)
Asset

value

Working

of

common

per

$1

$1

$11

assets

$1.83

com¬

share

mon

of the

that

equal

The

one.

scale

It will be noted above that the

■

equivalent to

increase of 50% in its value.

reflected

is

COMPANY PERFORMANCE

;

in

5^ inch

a

This

the

red

weight

factor of 11 to

Now, let

compan¬

Common

applies

stock

Common stock

(shares)

1.

Common

how this theory

us see

with

leverage

a '

specific

some

$33,000
20,000

2,000

13,000

factor of 11 to

2,000

2,000

$1.00

$6.50

stock asset value

Here

fig-

.

equity.—
outstanding

_____________

have

we

a

similar case, a
Note haw

preciation of

B

has 12,000,000 common shares
outstanding compared with 2,000,shares of Company A.
This
adds to the leverage of Company
A's common stock.
Company A
has $11
of working assets per
common
snare; Company IB has
000

This may all
academic but
with preliminary Jp find it

s^eith

this

company

value—$1.00

vides greater leverage for its com¬
mon stock.
Futhermore Company

$6.50—an ap¬

$20,000

Preferred stock___

demonstrates

$t tb

has risen from

each

share.
However, Company A
$20,000,000 of preferred out¬
standing while Company B has
$10,000,000 of preferred outstand¬
ing.
Company A therefore pro¬

commqnXstock. In this
common^stock asset value

$22,000

Represented by;

inch to 6V2 inches.
This

50%

Increase

of

asset

same

Has

5.50|||while the total
assets have
onlypsen 50%.
Here again
w^Jsee.-a: leverage

Value

1

/

the

the

per

ahdfhow the entire

appreciation accitufs to the bene¬
ease

Present

move¬

from

mains constant

fit of the

Investment Company A

an

Total assets

of

ment

generally

although margin accounts, coL

is

(000's omitted)

exists because of fixed senior
capital such as bank loans, bonds,
or
preferred stock.
Unless this
senior capital has a participating
feature only the common stock
benefits directly from a rise in
the company's assets.

and

scale

the

on

.■

TYPICAL LEVERAGE INVESTMENT

assets) from 1 inch to IV2 inches

The term leverage is
confined to investment

has

i•/.?v.v:,^'{.•••• •'
u'XK ■ .*■ v.fw...v

varying values in the market.
CHART I

companies lever¬

s,;ock

common

represents

Moving the black weight (total

age

lateral loans

00111-

Total assets—.

■

the headache.

ies

(

(000's omitted)

weight of the red and

objects

black

gained
by the use of senior capital." The
result: a margin account minus
"the speculative advantage

In investment

RESULTS
■

leverage as

advantage

lever."

a

vestments

II

LEVERAGE

,

a

Webster defines
mechanical

IN

•First Stage

The black weight represents the
total assets of a leverage invest¬
term often used
ment company.
The white weight
by all of us. It is seldom under¬
The
stood by
the layman and un¬ is the senior fixed capital.
usually difficult to explain to him. red weight is the common stock.
After years of study I have failed The white
weight is ten times
to
find
a
simple
explanation.
heavier than the red weight. The

Leverage is

CHART

VARIATIONS

This

portfolios will do

the Averages.

as

•

situations.

similar

need take for grant¬

we

ed is that their
as

panies with senior, capital provide

leverage

of

discussion

a

shares all

amount

same

of assets but different Capitaliza¬
tions.
•'
; '

(Continued from page 77)
on

"

Here in Chart II we illustrate 2

helpful to explaip more easily the
""

"

50% rise in total assets.

industrial com-ures:

the preferred stock obligation re-

Corn Exchange Bank

llll Trust Company tltllf
ESTABLISHED 1853

«

^

/

t

»

'

-

r

v

V:'

' '*

A

'

GRACE NATIONAL BANK
OF NEW YORK

HANOVER

v\ '

1

A Bank Statement that
any

1

*

'

•

,

Man

1

Statement

,

or

RESOURCES

.

?•

Understand

can

of Condition, December 31, 1944

■i
fr:

Woman

NEW YORK

SQUARE,

*

Cash in

.

V^ult and, with Panks

.

i
»

i

.

U. S. Government Securities

State*

Condensed Statement

as

of close of business December

31,1944

Other

Deposits and Other Liabilities

are

.*■■■■

.

To meet this indebtedness

,s Cash in Vaults and Due

k

from Banks

other

Loans and Discounts«

r

1 First Mortgages.

;

Customers'

•

.

Liability

deposits

secure

.

Total
This

to

.

v

....

Acceptances

.

.

,

■

38,719,584.84

g|

331,609.26

i

125,411.18

,

„

.

9

i

............

;

f

,

Reserve for

BOARD

DUNHAM B. SHERER
Chairman

ing

&

L ;

/SL^TE'
*

tAtt*t"tt

j

$ 38,178,571.44

.

l,

GEORGE DOUBLEDAY

'Chairman,

■

%;:■

,

"I

^.

.

.

$ 5,266,230.17
77,567,535.59 1
456,770.32

.

»

;

»

673,251.94

377,956.28
722,472.26

Deposits aggregating $15,042,450.32

DIRECTORS

rl1,:v|

David M. Keiser

•

President,

.

Cuban'Amcrican Sugar Company

Ji Cuddihy

■■

v

.

Service

JOHN

■

First

,

t>

**

Wfagaalls Company

|R. Dewey

t

t

President, Johnson if Higgini

1

President,

Robert DtsBwyer

»

I. .1

:.'

;

Vice President

Co., Inc.

|

c

"

A% H' M & C°"

General Foods

President,R. Grace ^ Co*
•

:

■

•Cletus
Kirlin,

SIDNEY A KIRKMAN

1

Harold

^eAting

J. Roig

President,
Pan American'Grace
}

.

■

(

*

'

•

Airways, Inc^

\-/

'

.

...

-

•;

'•

•

,u

James H. Sharp
Vice-President

Inger6pll'Rand Company

—

:

Corporation

■

•;

Catpip^ell, Hickox ^ Keating

D. C. Keefk

Deposit Insurance Corporation.

1

.

'

Vice-President,

mvpamim-tt

Consulting Engineer

•

International General Electric

Anaconda^. Copper Mining Corbpany
Iff •;
•. :;|| William M. Robbins

-

R. McWILLIAM

Exchange Safe Deposit Company operates vaults in 56 of
conveniently located throughout the City of New York.

i'

Clark, H. Minor.

-

D. S. ICUBHART
r

Copper Corporation

\V. H. La Boyteaux

President

Executive|VicC'President,'
w/tt

•:

Director,

David DoWs

Treasurer, Livingston Worsted

rmi\t

,

r '

.

Harold Kincsmill

Vice'Prcsid^fit and Treasurer,

Mills, Inc..

Company

The Corn

.

295,295.66

President, T.' V|
■

.

Outstanding

HERBERT J. STURSBERG
:

<!

EDMUND Q. TROWBRIDCE

Member Federal

.

Contingencies, Interest, Expenses, etc.

New York

BRUNSON S. McCUTCIIEN

Home Life Insur•

.

►

.

The

E. MYRON BULL

Chairman,
ance

•

'

Company
ETHELBERT IDE LOW

*

.

Chisholm

Chester

'

v

,c

.

IngersolVRand

•

President, Dxtord Paper Co^

WILLIAM C. IIOLLOW'AY
Vice President, W. R. Grace

JR<

ptitppc'

1
ln«Cover»ment

t

.

$2,000,000.00
2,500,000.00
766,230.17

iV

»

...

i

F |;|

^

•

Nichols Engineer•
Research Corporation

.

a

i

Cerro de Pasco

,

Chairman,

i

258,971.17

OF DIRECTORS

Vice President

'

363,975.82 >
520,874.13.

,

f

1,913,575.95

$718,781,201.70

,

...

HENRY A. PATTEN

C. WALTER NICHOLS

■

Includes U.US. Government

Funk C

*«

135,000.00

.

$84,390,964.62,
*

Capital, $15,000,000.00; Surplus and Undivided Profits, $23,178,571.44

Drysdale & Company

.

.....

Own^Acceptances in Portfolio

Hugh J.

ROBERT A. DRYSDALE

.

10,373,598.63

.

Less

Robert
>

i

■

•

Certified and Cashier's Checks

Acceptances

........

V

.

nl

.

Deposits* | .I''.;

7,194,749.46

...........

,

Capital
Surplus

13,160,217.84

.

...

..........

Meet Indebtedness.

Leaves.;

.

LIABILITIES

Undivided' Profits

#
.

plptesil
Stqck.
"

required by law.)

Accrued Interest Receivable
Other Assets.

'♦

a

V .'.»..»■■

...

...

.

22,625,291.27

$84,390,964.62

491,375,697.30

-

.

Other Real Estate

a

i

93,098.10

.

«

.

$155,327,786.07

........

*

on

.

.

««»...

Accrued Irfterest and Other Assets

...............

Banking Houses,

>

H

to

purposes as

....

.

,

...........

($97,409,704.59 pledged

i}.
and for
I Other Securities

.

2,616,254.85

»•-■

Have:

TJ. S. Government Securities

[

,

we

.

,

Customers*|Liability for Acceptances

(includes $81,036,069*77 U, S. deposits)
f

*

•

Stock of Federal Reserve Bank

$680,602,630.26

.

2,575,000.00 |

39,446,301.60

■

Mur^leipdi attd other Public Securities'
Bonds't .
| *• » 'k , . . ,

Loans andV Discounts

Our

$16,015,168.85

i

...

K

.

Demand LoanTtb ISrokers, Secured

the 74 branches




are

on

sale

at

all'offices.

The Grace

name

has been identified with domestic and

banking and

'
M EMBER
—

FEDERAL

ILL

commerce

DEPOSIT

for almost

a

international,

century.

INSURANCE

CORPORATION

i

I

Volume

161

Number

'

snare.

THE COMMERCIAL & FINANCIAL CHRONICLE

In fact, U. S.
3 times
faster than Adams Express in any
important general market fluctu¬
ation,
(in
both
directions,
of

total assets)

course).

&

50% .rise in total assets.

Foreign

Express.
should

move

.

: chart in

"J;-

.

RESULTS

VARIATIONS IN LEVERAGE
V
'

V

.

■

7:
'

'i

\

■

'

•

'

•

•

Com•

panyAv

Total assets—____________
«•

divide

pany B

$33,000

$33,000

20,000

10,000

13,000

23,000

2,000

12,000

$6.50

$1.91

Company

stock

Common stock

.

sesses

Assei,

_ _ ___—_

vaiue

*

common

01

in

increase

%

incieased in
the

the

50%

stock of

common

is

the

in

of

16 V2

the

to

leverage factor

be
to

Thus if com¬
working assets

shares :with

$16 V2

$4, the

are

tual

market,

Company A

up 550%,
is up a mere

necessary

Company

ac¬

1.
If
$2, the

4 to
at

on

superficial calculation

it appears to have an actual lever¬
age

($15 of market price
$60 of working as¬

of 4 to 1.

divided

into

sets.)

X:
the

On

other

CITIES

AMERICAN

assets

is

POWER

12%

&

This

portfolio,
particularly advan¬

therefore

tageous to its common stockhold¬
in

ers

finds

a

Here one

rising market.

the

full

effect

of

leverage,

railroad

in

and

naturally the
common

sulted

in

calculation

market.

any

asset value of
fluctuates
sharply

these

growing

of

as

industries

established, funda¬

industries.

He

summed

(1) electronics and
sound, (2) chemicals, (3) foods,
(4)
transportation.
The
lady
thanked him for his advice, prom¬
ised to return for specific recom¬
up

as

mendations,
friend

A

month

met her at

a

later ' my

country club

dance and

or

less than

owns

who

he hadn't heard from her.

Utility

was

she

con¬

and for that transportation

rich widow.
The
lady
knew
nothing

by
charming

fall of the general
Talk
of
Railway
&

rise

and

new

well

as

mental

years;

issues;

friend

counselor

the

1.

of

general program which
investment in securities

a

expressed surprise that
"Oh,"
said, "I bought all
those
Equities hold only about 15% in stocks.
I picked them out of the
utility securities;
and
National paper. In the electronics field,
Bond and Share has only 20% of I selected Howe
Sound; for a good
its total assets in bonds.
chemical stock I picked Chemical
This brings to mind an amus¬ National Bank; my choice on the
ing experience of an investment food stocks was Roan Antelope,
Carriers & General

in

invested

are

stockk.

common

of

you

haven't for many

and

sets

x...

96%

hand,

warn

times

as

I got some

Adams Express."

so

about investments

so

her

(Continued

advisor

on page

in

why I mention it.
The

important

to establish actual lev¬

eliminate cash, investments
high-grade bonds, non-specu¬
lative preferreds and other non¬
volatile
assets
in
figuring
per
share working assets.
This must

much because of their

leverage
factorv
This
simple you may wonder

greater
seems

Another

investors be done because such static assets
lever¬ will not move with the general
age
shares trend of the market.
and try to compare issues on a
Here are specific examples to
price, basis. Tor instance, Adams illustrate my point:
RAIWAY & LIGHT SECURI¬
Express and U. S. & Foreign have
approximately the -same amount TIES CO., as previously mentioned,
of
assets
today — $35,000,000. is a well managed leverage invest¬
Their shares sell at about the same ment company.
Its total assets
price. Despite this the shares are are currently about $10,000,000.
totally incomparable because of There are 163,140 common shares
Many

reason:

overlook

capitalization in
investment company

rrt IT

1

XT

XJL JLy.

.

the

difference in capitalization.
S. & Foreign's preponder¬

outstanding, The apparent lever¬
age factor is high, with about $60
of working assets per share. How¬

.

U.

of

ance

senior

stock far

capital

makes

than that

volatile

more

its

$5,000,000

ever,

half

(or

of

the

PHILADELPHIA
N ATI ON A L
x

x; ■

B A N K
XX;..;\

i.

27/ie (ffi/c/edt fine/

(3&irt^edt Sftariji

Statement

O F
149
1002

NEW

BROADWAY

MADISON

,

,

•

;

'

•

as
-rift,

.

,

'

.

\

21

*

•

of Condition, December 30'r 1944

*

'

/"v;.

;

.

♦,,

''>

•j

f.

'c'1

.

Cash-and due from Banks

«£&

■

-■

x

RESOURCES

(Singer Building) NEW YORK 6

■■

^

"

(Bet!.77th & 78th Sts.) NEW-YORK

AVE.
*

YORK

k'Xx

S^enndy/l'ania

in

%yfinizec/

FULTON TRUST COMPANY

'

*

'V

' r'

v

i-\?'

.

J'1

„

$179,670,195.27

.

,

•

.

.

.

.

471,028,479-15

.

10,547,043.46

saaaaa

■

♦

"

.

'

.

U; S. Government Securities

•

r

CONDENSER STATEMENT, DECEMBER 30, 1944

State, County
Other

'

RESOURCES
.:•»

.

Cash

on

on

U'. S. Government Securities.
Demand Loans Secured

State and

.

.

..

.

.

164,638.36*

Overdrafts—Secured

1,453,361.90,
x

..

.

v

.

.

Real Estate Bonds and

.

..

.-.

..

Mortgages.

Bank

32 7,'l 27.60

.120,000.00
1,516,289.82
♦985,179.65
3,215.02

..................

hy Collateral

.

.

29,499.884.04

.

.

.

"

.78,800,074.86

.

2,176,993.07

'
•

Customers'

Municipal Bonds.

Time Loans Secured

.

.

Accrued Interest Receivable

Federal Reserve Bank of New York Stock
Other Securities......

...

.

>10,937,297.88

.32,558,848.72

by Collateral

i.

.

Loans and Discounts

365,846.0.0^

.».,

Securities.;.

.

6,394,602.91)

Deposit in other Banks.

and Municipal Securities

777

Deposit in Federal Reserve

Bank of New York

Cash

,

;^X7 X'

Cash in Vault.:.......;..».,....,. $

X

X

118,042.60

Accrued Interest and Other Resources

1.00

.

S

100,000.00

Other Real Estate.

2,403,399.12

;

$774,126,069.97

*224,146.94

'.

Real Estate (Branch Office)

Liability Account of Acceptances

Buildings

131,485.79

liabilities

X^XXX-X:.'X ;: X;x'■

-

X '" ix xX;

Capital Stock (Par Value $20.00)

•

$ 14,000,000.00

s

>

.

7

•

144,462,755.30

Surplus

:

.

•

.

.

•

.

^

.

.

.

.

28,000,000.00

LIABILITIES

Undivided Profits
Due

Depositors

..

1

Capital..,..
~

30,000.00.

Reserve for Taxes

rnl

.

.

■,

9,958,268.70

,

.

2,531,815.94

,

267,696.50

...$2,000,000.

Dividend

*

875,000.00

Unearned Discount and Accrued Interest

145,851.18

(Payable January 2, 1945)

.oo.

nli
Undivided Prolits.

7.

139,048,588.62

,.;V$

Dividend No! 161 Payable January 2, 1945..
Reserved for Taxes, Expenses and Contingencies,

1,116,470.18 " }'

*

*

.

5,116,470.18

Acceptances

•-^'$44,462,755.30

•

,

«

#

.

,

3,248,617.88

•

Deposits
United States
EDMUND P. ROGERS, Chairman of the Board
v

ARTHUR

J. MORRIS, President

Stanley A. Sweet

john A. larkin

charlesvS."Brown

bernon S. prentice

o'donnell iselin

russell "th £ruikshank

E. townsend irvin

de

Franklin

b. Lord

.$101,518,722.75

Treasury

•

All Other

Deposits

.

x /■

■

Russell E. Burke-

stephen c. clark

Charles J.Wourse

henry W. bull

charles scribner

■

'•7'

7

.

'

-7

■

77:-::-X,

.

.■

715,366,516.27

613,847,793:52

./ 'I,;::;;.

_

Course! Fales

-*ir

'-r ■7,7 •;

1

$774,126,069.97
7 ,,77 7.7

■

..

77'.

.

.

'

..

-7

Charles S.-mcVeigh

Member Federal Reserve System and Federal Deposit Insurance




.

**

Corporation

Philadelphia, Pa.

'

%&$&***

stock,

a

erage:

6

that of Company B
91% in asset value
A's shares appreciated

are

whereas

pos¬

price must

about

$30, and when
with
the
prevailing
market of $15 per share, we find
the actual leverage only 2 to 1,

mon

outlined

included

reminds me
about investment
company names.
They are apt to
confuse you if you are unfamiliar
with
their
present
operations.
For instance, less than 7% of Rail¬
way and Light's total assets are
railroad or utility common stocks.
Adams Express is not a transpor¬
tation company; American Inter¬
national, Tri-Continental, and U.
S. & Foreign hold no foreign as¬

in cash, Govern¬

are

ments, and non-volatile securities.
After eliminating this amount, the
working assets per share of com¬

LIGHT

market

selling at
leverage is about
the shares are selling
actual leverage is 8 to

than

asset value more

increase

the

related

stocks have

common

Chart III)
leverage factor of
-

mon

While both

by the
Thus,

get actual leverage.

550%

common

shares.

A ;(in

a

But

of

value

assets

total
common

1.

to

Common stock outstanding
(sh a res)

the

number of

Represented by:

Preferred

greatest leverage

I

V
get the,; leverage factor we

To

Com-

•

I;:*--.

the

factor.

Market Values

.

with

issues

Alter an Increase
of 50% in

•

*,' <!

i

•

(and losses, too)
occur
in
those

gains
invariably

will

(000's omitted)

'

,

Greater

Second Stage

'

•

Light Securities Co.

to

compared

of Adams

Chart; III shows what

happened to both companies after
a

WBBwHKWWBIlBWwWWWWBBWi

4348

$1.83 of working assets per common

hhhnhhhhihh

mmmm

mW&

..

-

;

;.

r

Member of the Federal Deposit Insurance Corporation

,

81)

settlements\ which may be .opinion nothing short of drastic
reached, and any world organiza¬ measures can maintain the peace
in a world * torn by social, eco¬
tion for peace *: which is estab¬
If ycu contemplate making additions to your personnel
lished, will be no better and no nomic, and political revolution.
please send in particulars to the Editor of The Financial
worse
than the pacts, alliances,
Chronicle for publication in this column.
r This book is a brilliantly argued
(Special to The Financial Chronicle)
and arrangements of the past, un¬ and powerfully written plea for
135 South La Salle Street.
Mr.
less the real nature of, the present intelligent thought and intelligent
BOSTON, MASS.—Edward B.
Lindgren in the past was with
world crisis is analyzed. *
Watson is now associated
with
action.
Mr. Ziff has had a wide
With a realistic approach based and intimate acquaintance with Paine, Webber, Jackson & Curtis, Link, Gorman . & Co., Inc., and
on long familiarity with military
-a
Webber, Darch & Co.
diplomatic and military develop¬ 24 Federal Street,
and international affairs, Mr, Ziff ments of the last decade, and has,
(Special to The Financial Chronicle) 'a
analyzes the situation in which it is stated, been consulted by both
each of the major countries finds our own and foreign
BOSTON, MASS.—Vincent No Early Prospect of
governments.
itself as the war draws to a close. He has also appeared before com¬ Blake Allison has become con¬
Service on Peruvian Debt
Many of the facts he presents are mittees of both Houses of Con¬ nected with F. L. Putnam & Co.,
any

"The Gentlemen Talk
Of Peace":
^T;a-;A

from

book

new

on

the pen, of
the subject of

'

peace
entitled
Talk of Peace,"

"The Gentlemen
has just been pub¬
lished by the Macmillan Company,
The ^author poses this question:
Are !we, through ignorance and
unfounded optimism, already sow¬
ing the seeds of an even greater
and

to

which

from

that

about

conflict

devastating

more

-

than

emerge?

The

whether

not we

or

evaluate

and

competitive

been

power

world

and

to

The solution

difficulties which Mr. Ziff

our

is

offers

He also believes that

it holds for the

drastic one; but

a

in his

Mr.

Ziff

Coming
best

is

claimed with

the

war.

entitled

is

authority, had

influence

rect

now

ence

the

on

Rape of Palestine,"

regarded

standard refer¬

a

Ziff

was

in

born

He

spent

World

in

several

years

many

and I other

journals.

a

and

D.

in Peru. Discussions have

progress

not been resumed and there is no
(Special to The Financial Chronicle)

early prospect of service on

CHICAGO,

debt. The

has

Lindgren

W.
affiliated

become

Rollins

H.

E.

ILL.—David
&

Sons,

situation1 will

the

receive

to

Council's

attention."

Inc.,

>'

Organized 1866
:

A-

'

Statement

A S S E T S

v

v;V-?AA^^A;;.; .'A

A ,A':; A-^Aaa : A":A >A^A'-YA-.- ;A-A A-YAifAv :;3v

A/v;

-■

AJ$::.A A

of Condition, December 30,1944
■

Cash and Due from Banks

U. S. Government Securities

.

444,931,343.47

.

.

Municipal Securities

^

\\

A.

rf

7-

'

'

v

•'

11

-

Mortgages

Banking Premises

.

.

V A

.

*

l.,

•

"* 'A;'/,

* <5

>

Receivable '.

;

.

.

.

Customers'Liability

Acceptances

.

.

.

.

.

.

.

•

'

i

1

'

978,434.84

/

**

t

'

>

»

•

*

•

•••••••

Surplus |....

i

'•

i

32,654,350.22 :§!
7"

'

1,

.-;v>

j

f

\

>■

f

'7

112,652,407.80-

.

..

.

.

.

.

.

.

•

.

.

.

2,561,004.94

11,815,719.09

.

.

.

2,228,837.87

«

3,134,036.58
!

A.

866,787.22

1,075,863.93
757,439.99

•Accrued Interest Receivable.........

1

>

.

180,428.77 ;&>

.

Cash and Transient Collections.
Other Assets

A,,'-;'..

$30,000,000.00

...

«

V*

Prepaid Taxes and Expenses.

.

•

Vaults, Furniture and Fixtures.

LIABILITIES

Capital

•

'

$40,206,798.33

s

Real Estate Owned

•

.

'

«

;

Investment in Fidelity Building Corporation

$1,896,775,337.76
'

.

;

State, County and Municipal Securities

Mortgages

-

,

.

Other Investments.

' 51,433,484.93

.

on
.

.

.

.

.

.

W U. S. Government Securities

15,548,833-64

.

Hand and due from Banks

r/-fV-;; "•

*

j Accrued Interest and Accounts
^

•

Investments:

286,664.86

.

.

on

Loanb.

47,855,644.28

.

.

Cash

9,646,523.19

.

.

Other Securities and Investments
Real Estate

ASSETS

1,059,569,241.35

...

Loans and Bills Discounted
State and

312,525,167.20

.7 $

...

v'."

V

80,000,000.00

'

.........

,

.

...

'•«'

*'

,

'

611,190.67

.......

*

.

;

104,421.18

;

"i.

,

$208,849,286.59

LIABILITIES
: Undivided Profits

$137^,344,871.13

27,344,871.13 '

a

j Dividend Pay able January 2,1945. *
'

Deposits

.

.

;.

.

.

.

.

.

.

.

'

875,OOt).O0

1,726,073,556.53

/

Capital "7.
Surplus

•

............

Undivided Profits.
Bills

Payable

,

.

.

:

.

.

.

.

Accrued Interest, Taxes, etc.

.

.

; 24,000,000,00

>
.v

Acceptances

*

Outstanding.

*

5,403,816.90

••;

•

.

.

.

Reserve for Interest,

.......

13,000,000.00

3,076,226.47

.

Reserve for Contingencies, etc.

■

25,425.25

.

980,512.15
f

Other Liabilities

.

...

.

.,

.

2,097,581.05

■

.

$1,896,775,337.76

.

.

Securities in the above

statement

are

carried in accordance with the

method described in the annual report to stockholders, dated January
13, 1944. Assets carried at $634,040,925.27 have been deposited to

...

1,250,065.09 .A

.

i

£V V-•

•

639,321.71'

;
/

• •

A

United States Treasury

.

22,500.00

46,755,616.96

Other Deposits

.

137,405,556.36

.

.

.

.

VA-

A_jV.Vv.--'UY

deposits, and for other

purposes.

...A

184,161,173.32
'

$208,849,286.59

and other securities carried in the above state¬

Government,State and Municipal deposits,ClearingHouse
Exchanges, and for fiduciary purposes as required by law in the sum of $55,495,647.78.
ment are

pledged

to secure

MARSHALL S. MORGAN

KENNETH G. LEFEVRE

President

Treasurer

deposits, including $583,022,892.44 of United States Government

,

.

135 South Broad Street,
Member

.

Taxes, etc.

United States Government obligations

secure

.

$6,700,000.00

Deposits:

Less Amount

fin Portfolio

.

"jOther Liabilities:,.^;*

$1,005,937.40

.

Philadelphia 9

of the Federal Deposit Insurance Corporation




MEMBER
MEMBER

was

vices it says:
"It is disappointing to report no

Trust Company

DECEMBER 31, 1944

been

resump¬

almost

Fidelity-Philadelphia
CONDENSED STATEMENT OF CONDITION,

a

As the Council re¬
daily inquiries on
the subject, a further report seems
necessary, and in its Jan. 2 ad¬

Gernon, 208 South La Salle Street.

with

1

that

contemplated.

ceives

Dayton is with Holley, Dayton &

gen¬

magazines

'

had

bonds

but

tion of discussions in the Fall

State

ILL. —Leonard

dollar

unsuccessful

staff

the

studying international af¬

fairs, and has written

nical

to

Funds, Inc., 33

CHICAGO,

eral and special articles for tech¬

YORK

NEW

abroad

added

(Special to The Financial Chronicle)

Aero

I.

been

Chicago

Squadron

War

has

Trusteed

of

and served with the

202nd

negotiations in Lima looking

resumption of payment on the

Peruvian

BOSTON, MASS.—Ernest S. Coletti

Street.

in its field.

Mr.

the
to

(Special to The Financial Chronicle)

of

The author's earlier book
"The

Council

for himself in New Bedford.

di¬

a

conduct

Jan.

Bondholders

Foreign

Tifft

In the past he was in business

Co.

of

of

seller

with

was

Brothers, and E. M. Dickinson &

"The

Germany," a
1942 which, it is

Battle

formerly

of

3,
the
Protective
points out that in the
statement of the Council, issued
June 20, 1944, it was stated that

Inc., 77 Franklin Street. Mr. Alli¬
son

author of

the

for¬

on

46 years ago,

Bankers Trust Company

date

Under

witness
eign and military affairs.
gress as an expert

to give the

with the contradic¬

of tomorrow.

peace

already shaping the world of

tomorrow.

today

tions and dangers

which

forces

as

public an over-all picture of the

recognize

can

marshaled

so

specialists,

time they have

but this is the first

answer,

dynamic

the

to

available

already

are

we

Ziff believes, will depend on

Mr.

Broker-Dealer Personnel Items

'

ZWFC/W

W. B.

William B. Ziff

are

Thursday, January 4, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

80

FEDERAL

FEDERAL

DEPOSIT

RESERVE

SYSTEM

INSURANCE

CORPORATION

.

■

the

continue
constant

-

;

sides of the
with com¬

talk out of both

we

mouth at one time—but

For optimists or

plete sincerity.

pessimists can serve their pur¬
poses at almost any stage of the
market
by
purchasing
these
shares.
Here, as T said at the
beginning, you can tell your customers that they can have their

"

cake and eat it too.

pessimist who has
the market rise for several

There is the
seen

wants to sell out but can't
make up his mind.
We
how he ;'can liquidate

years,

quite

show

can

in standard

of his; holdings

■75%

common

stocks, place the remain¬

ing 25% in well chosen high lev¬
erage issues and benefit as much
in a rising market as if he were

fully invested.
For example,

and

the

will

in

note

high lever¬
stock like U. S. & Foreign,

000, invest $4,000 in a

dollar appre¬
if he continued with his

and obtain the same

ciation

as

1.

the

by

outstanding,
Here

is

der"

of

"batting

current

our

the

all

issues:

records
as

or

tax

sales

ASSETS PER

WORKING

VOLATILE

Agricultural Shares.

Work. Assets
Per Share

Current Per Dollar of

Stock—
U. S. & International

1

$11.92

Selected Industries

1

11.48

Selected

8%

Indus.

Conv._

Utility Equities
:*'1%
U. S. & Foreign Sec.—
10%
Tri-Continental Corp._
4'/2

Shareholdings.. '

Pacific-American

can

release
at the

$12,000
present

Mkt. Price

Price

States

Capital

Equity Corporation

5.62
4.87s1
4.48'
3.98

2

Administration

3.29

.

9%
2%

Inv._

3.29

"

3.14*
'••• 2.86

1%

_

closed-end

These

suggestions when you have
nothing very special to recom¬
mend as a tax sale replacement.
ment

to

•

1%
3%

Inv.

7%
SVa

1.99

-

American Cities P. & Lt.

General

American

Adams Express

12%

_______

,

1.98*
1.98

„

Blue Ridge Corp.______

2%

Railway & Light Sec.__

15%

American

10

the

dollar result

him the same

give

This is almost the

the upside.

on

perfect

Corp.__

6%

Preferred

90 %

__________

15V2

1.16

& Int'l

S.

Atlas

Corp.

General Amer. Investors

Includes
volatile

at

tDoes
value

include

oil

These

and

gas

adjusted

are

.,

.

well, eats welDapd
to consult a doctor
cers.

'

.

Now for
to
on

see

v

doesn't have
about his ul¬
t/
'
.

.

.

.the optimist;. It is easy

that the man

the market can

who is bullish
find a number

leverage invest¬
stocks, vwhere he
can
expect appreciation 4 or 5
times the amount of his commit¬
ment, and in some of the extreme
"underwater"
stocks, or option
of

issues

ment

among

company

find issues
of 10 to 1.
Of particular significance to the
optimist, is the knowledge that he
warrants, he can still
with a leverage factor

has the

margin
aches.
shares

none

he

wiped out by a
sold out margin

margin call.

A

*

.

.

.

.

.




.

.

.

.

.

.

.

.

Acceptances

on

Receivable.

:

.

.

.

Real Estate Bonds and

Bank

Special Uses of Investment
Company

27,049,236.86
3,060,979.90

.

,

\

7 7'

Mortgages;

>
■

,

12,188,286.59

1,609,493.08

•

<

.

,

Shares

If;

Buildings

I could continue talking a great

J!'

-

.

.

,

„

.

.

Other, Real Estate

.

.7

7

t

'
.

J.

.

.

.

.

.

.

.

.

.

....

V

.

.

.

7

.

106,961,520.96
9,649,172.19
836,282.98

....

.

Total Resources

*

$3,826,161,881.54

.

deal
a

time

the

is

LIABILITIES

growing

Capital
Surplus Fund

short and I would like to conclude
with

cial

.

.

.

.

...

It

.

7

Deposits.

.

seems

versified

an

try to assemble a di¬

list

of

stocks

the

for

small investor. There are
of people who occasion¬
a few thousand dollars
invest in securities, just as Mr.

Ruml
depicted
father,--an Iowa

with

the

his

entire

.

managed
issue—?or 2

or

diversify

investor -is
he obtains

tion

#

possible and'twhat is

65

......$

more

his {investment.

stocks

.

Outstanding

.

7

302,222,570.91

.7

.

...

.

.

.

.

.

*

7

.

.

•

.

.

.

.

.

.

.

v

21,750,000.00 v
'

.

3,517,104.32

*

!

3,060,979.90

$ /

.

.

3,441,036,640.75

.

6,578,084.22

.

.

.

33,520,902.91

....

TV

.

.

$

-

.

.

8,149,036.21 /

V
»

,

.

.

>

i

.

$3,432,887,604.54

.

.

.

;

:.

7

.

>

,

;

^

J.

82,590.00
246,486.00
2,700,000.00
1

(and Net Difference in Balances between Offices Due
to Different Statement Dates of Foreign Branches)

'

815,324.12

was

Accounts

impor¬

penses,

Payable, Reserve for Ex^^i
Taxes, etc

Fur¬

represented

/

.

.

7

powers,

to secure

at

moneys as

This Statement includes the

December 26, 1944, and
-

—

•■»;..
are

required by law, and for other

resources

27,631,766.97

;

$1,211,049,727.96 in the above Statement

public

.

pledged

as

$3,826,161,881.54
to

qualify for fiduciary

purposes.

and liabilities of the English and

Belgian Branch

;

20,726,386.95

Total Liabilities 7 7 7 7 7 7 7 7 7 7 V 7

Securities carried

by

By concentrating these smaller

"7

■'■■t-V.-'"A-:--7='^ vT:

the final cost to the in¬
vestor is less. • Do you know that
if an investor bought 1 share each
the

v

,

.

because

dreamed

,

.

company

faibgreater diversifica¬

...

.

managements,. The

than-.-he>fever

...

Liability as Endorser on Acceptances .
and Foreign Bills.
Foreign Funds Borrowed
>
Dividend Payable January 2, 1945.
Items in Transit with Foreign Branches

soundly

served

,

-

3 issues if you want

well

.

.

%

tant he. obtain^ continuous super¬

of

.

Acceptances ............
Less: Own Acceptances Held for
Investment.
7

problem of occa¬

$2,000 in-a
investment

to

.

Federal Funds Purchased

his,; venerable
country doctor,

Why try to suggest 10 shares
Motors,
10
shares
of
General
Electric, etc., when
such an investor can easily put

.

Total Deposits

sionally investing his modest sav¬
General

42,222,570.91

.

.

Treasurer's Checks

ings.
of

90,000,000.00
170,000,000.00

.

economic waste for

ally have

faced

....

Total Capital Funds

broker to

to

.

Undivided Profits.

shares.

a

$
...

General Contingency Reserve.

few suggestions on the spe¬
uses of investment company
a

..

""

.

.

.

Accrued Interest and Accounts

We also make ad¬

account has no the Dow-Jones Composite Aver¬
chance for a come-back.
No mat¬ age it would cost him about $3,500
ter
how
low the market goes, today, and the commissions and
odd lot charges would amount to
there will always be some value
about $350 or 10%
of his pur¬
to these leverage stocks, for they
chase?
.7
are
in fact perpetual options on
the market.

.

...

.

.

.

7

.

working on vision of
of the head¬ thermore;

buys-these leverage
outright, he will never be
If

.

Credits Granted

justments as published portfolios
of the companies show changes in

advantages of

with

.

.

.

.

millions

away;

.

Other Securities and Obligations

by
the

changes affect

volatile assets.

.

.

figures

various issues.

.

.

estimated
properties, equal to

average

runs

■

on

.

$19,000,000

"

market

as

'V

146.53

$0.93 additional.

us

„j

Hand, in Federal Reserve Bank/and Due from
7./-,
Bankers.,
.*
...
.7. . . $ 519,876,568.15
U. S. Government Obligations
'.7 . . . . . .
2,362,481,367.07
Loans and Bills Purchased
.7
/
826,356,970.19
Public Securities.
$
55,253,524.53 :
Stock of the Federal Reserve Bank
'
7,800,000.00

Cash

Banks and

holdings in investment trusts
working assets per share.

not

of

-93t

7'A

Corp.

Dow-Jones ~r~^
*

Madison Ave. at 60th St.

Bush House, W. C. 2

RESOURCES

1.37

'

.

Chicago

if the mar¬

he saves 20% of
his capital if the market goes to
hell.
In the meantime, he sleeps

ket

MADISON AVE. OFFICE

-

1.23

14V4

Niagara Ehare
U.

speculation for the pessi-

mist—he loses nothing

&:S.

;7 7 •"■■■'' ' 7 -* ' ' 77' • 7'' ' ;';'v7777'7777
Condensed Statement of Condition, December 31, 1944

7//;.;r"

1.75
1.58

European Sec.

Broadway

140

LONDON: 11 Birchin Lane, E. C. 3;

1.92

However,

practically

/

MAIN OFFICE

AVE. OFFICE

Fifth Ave. at 44th St.
t

dollar

profit in any sharp
example, he reduces
his chance of loss to a maximum
of about 20%, assuming a drop to
100 in the Dow-Jones Industrial
Average.
On the other hand, a
100% rise in the market would

Pierce, Fenner & Beane.

'

In this

gain

Lynch,

Merrill

with

recently

wish to present..

may

from 1930 to 1940; and more

pany

you

as

general

A. Pierce & Com¬

2.05*

American International

FIFTH

2.28*

Service

rise.

and

partner of E.

Guaranty Trust Company of New York

2.85

Public

General

same

tirrfe,

questions

such

answer

associated with Merrill, Lynch

& Co. from 1919 to 1930; a

attention and I will now endeavor

might be suitable.
If you are selling a high yield
industrial preferred and require a
sue

longer on leverage as it is
fascinating subject to me with
its many mathematical problems.

market

the

from

was

for your very kind

I thank you

is¬

stock

offices at 115 Broadway
to engage in business as a regis¬
tered investment advisor and fi¬
nancial consultant. Mr. Woodward

simple replace¬

provide

Jr., has

Richard H. Woodward,

opened

Building Shares, etc. ,v;

7

sale represents a

common

Opens Advisory Office

<

Aviation Shares.

standard non-leverage open-end

or

the

6.45

*

Deb.i_^ ; 51%

Central

a

J«.

•

Shares.

Automobile

relatively small amount of money;

Volatile

in

Me.,

R. H. Woodward, Jr.

the

all

almost

where

funds

as:

this

time, investment company issues
offer numerous helpful ideas. '/If

to offer or if the

DOLLAR OF MARKET PRICE

main¬

being

There are also numerous open-

major industries are representedby specialized group funds such

at

a
branch
in Portland,

Chapman Building.

Superpower.

basM

end

effecting

Cities,

American

—

American

Sale Replacements

Tax
In

tained

Utilities

fit.

you see

Boston,

Stocks.

jpn past
speciM~reatur

other

Allied

&

Tobacco

—

2,

mann,
Howard S, Harris,
&ndi
Benjamin F.. White. The main of¬
fice is located at 30 Federal Street,

'

Real Estate—Sheraton Corp.
Tobacco

an¬

Jan.

Co., members of the Boston Stock
Exchange, are Lester G. Brugge-

suranshares.

Mining—Newmont.
Oils—Petroleum Corp.

effective

..

Insurance—Century Shares, In-

quarterly by
can
m^ke your

recommendations

investment com¬

an

Chemicals—Chemical Fund.

year-book and many
you

find

/Aviation—National Aviation.

are selling any of the high
grade standard stocks and have ho
positive replacement suggestions

IV

CHART

would expect
this stock to move about 5 times
faster than the general market,
for its actual ^ leverage is about 5
to 1.
On an advance of 100% in
the general market, U. S. & For¬
eign should advance from its pres¬
ent price of $10 to about $50 per
share. Therefore, one can visual¬
ize this $4,000 invested in U. S.
& Foreign, increasing in value to
about $20,000, if the general mar¬
ket doubled in value.
The net
gain of $16,000 would be the same
as
that obtained
by continuing
with the $16,000 investment in A.
T. & T;*-'-:
In reverse,
if the market de¬
clined sharply, say to 100 on the
Dow-Jones—A. T. & T. might sell
at about 100 with a loss of $6,000
from its current price. ' At that
level, U. S. & Foreign might be
selling at 2!£ with a loss of $3,000
from the current price.
The pes¬
simist has" lost about $3,000 less
than if he had held his A. T. & T.
he

or¬

leverage

leading

investment company

General

Thus

so

to

that

.1945, the business formerly con¬
ducted by Baldwin & Co., estab->
lished in 1925, and B. F. White &
Co., Inc., established in 1922, will
be succeeded by the firm of Bald¬
win, White & Co.
Partners in Baldwin, White &

issue which can replace cer¬
tain similar common stocks, viz:

published

Barrons

of shares
shares.

number
7,500,000

large

$16,000 investment in A. T. & T.
The explanation lies in the fact
that with the current position of
U. S. & Foreign, we

;

our

sible

BOSTON, MASS. —"It "is
nounced

pany

you

also double in value and
sell at $320 per share.
If pessi¬
mistic, this investor can sell his
100 shares of A. T. & T. for $16,-

'

currently

stock

this

in

also

a

selling

age

table

leverage

might

>

you

leverage ratio of about 2 to
This low ratio is accounted for

has

able
are

As

1929.

in

our

IV),

(Chart

priced stock
of

reminiscent

is

name

high gyrations

at' about 160. •' If the
Dow-Jones doubled, A. T. & T.

T.

ferreds, or one of the open-;end
specialty funds with an entire
preferred stock portfolio might
prove a practical replacement.
In certain industries, it is pos¬

proper.list of recommendations,
and of the moral obligation of at¬
the principle of
tempting to supervise your selec¬
highly important
to recognize the ratio of leverage tions.; : You can offer your clients
any one of nearly 100 open-end
possessed by the various invest¬
common
stock funds, 13 closedment company issues.
As men¬
end non-leverage funds, and 36
tioned previously the price of a
share is no indication of its vola¬ leverage issues if he is specula¬
tively inclined.. Tn addition there
tility.
Yet it is surprising how
are 10 specialized preferred stock
many
people think that a low
and bond funds available in the
priced leverage share necessarily
open-end companies and 24 pre¬
possesses high leverage.
For in¬
ferred stocks in the closed-end
stance, Blue Ridge Common sell¬
companies.
The long term rec¬
ing at 2% appeals to many traders
ords of these companies are avail¬
because it is a low

suppose an in¬
shares of A. T. &

100

has

vestor

end

a

(Continued from page 79)
In
applying
How to Use Leverage Shares
leverage, it is
Now we come to the -dual-pur¬

pose aspects of leverage invest¬
ment company shares.
And here

replacement,

company shares you are relieved
of the costly burden of assembling

Option On the Market

Baldwin & Go. Merges
With B. F. While Go.

some of the closedinvestment
company
pre-

investment accounts in investment

Ail

81

FINANCIAL CHRONICLE

THE COMMERCIAL &

Volume ,161/ff Number -4348

of October 31, 1941.

Member Federal Deposit Insurance Corporation

'

French Branches

~V"

as

of

.

82

THE COMMERCIAL & FINANCIAL CHRONICLE

CHARLES R. HOOK

Sentiment For And Against Peace
Time Training Equally Divided

President,

our

Yet I

REV. WILBUR E. HAMMAKER

Bishop, Denver Area,

The Methodist

Church,

would be

Congress
legislation.

enacting

unalterably opposed to
compulsory military training in
peacetime. Many of my friends
believe that it is good strategy to
deferment
the
ation

this

of

of whether

tion

until
the

af¬

essential. It seems to me
present war has taught us
it is that we have a

sary or

if the
on

not

lesson

material

both in the Navy

that

f

e r

I'have

to
me

be

our

large our

to

change
conscien-

tious attitude.

Bishop- Hammaker
•,

Of course, I do not

want

to lay myself open to the
charge: of having an absolutely

closed mind.

schools for training of¬

so

that

much

convince

my

standing Army and also en¬

ficers

likely

larger nucleus

to

far

be

we

would have a

more

desirable

compulsory military
| think we would

of trained

seem to

This would

forces/

"I

me

than

do

press

ion

would

be¬

August,
went

definite

sufficient.

I

vv

The

Florida

would

I

by all
pulsory
military
training
in
peacetime;
There is some risk to

ex¬

this,, of course; but it seems to me
•that the risk can better be taken
because if the matter is dishon¬

opin¬

am

v/-

...

During
he

was on

the

desert

the staff of

boys

handled

estly

it

would

provoking wars.
hand, if. we do not
have compulsory military service
we are then not prepared to im¬
mediately cope with-the situation

con¬

na¬

have

Front

the

had

and

to
which

Browning

entire Western

secured

Front

area.

and

both presidential

writer

issue

understanding of what
would probably happen if we ever
got involved in another war. The

it

sidestepped the
Americans
diplomatic have likewise
many

fit not to view the situation

realistically. Between isolationism
and

internationalism there is the

American Way of past generations
and that way leads to what some

would call

Imperialism, and that
am suggesting.
If America is financially able
and fair enough to feed and arm
the world, then why can't Amert
is

-

exactly what I

development of the robot bomb

ica

short period of time his request

tion

which

this

nation.

barrier with respect to immediate

enough to take a greater hand
(alone) in seeing that the world
is run with justice to all. Frankly-,
I do not think that we need Bri?
tain,- nor Russia, nor China to
help us. If we are strong enough

attacks.

arid

a

granted.

was

...

.

Benning shortly

I visited him at

after

his

from

return

California

and he told me that his reason for

jet and other jet-propelled
equipment brings about a situa¬

nothing

before

never

Distance

and

will

oceans

We

will

faced

will

have

mean

be

no

v*

herself

arm

if

feir

pre

we

and

and

asking for transfer from staff to
the line

the

because he felt that

was

only

handle

a

to learn how to
job was to have had ex¬
way

perience in doing it yourself, and
that

ifi he was ever given com¬
of a group of tanks, he

mand

training and

wanted
tank

as

He

able

be

to

well

as

to

operate

a

BANK

his driver.

apparently made a good rec-

Founded 1824

DIRECTORS

Chairman

i
■I

^

At the close of

INCORPORATED

THOMAS W. LAMQNT
:

Condensed Statement of,Condition

December 31,1944

ASSETS

GEORGE WHITNEY

President

,

Cash

Hand and Due from Banks.

on

Direct

HENRY C. ALEXANDER

j

Vice-President

rARTHUR M. ANDERSON

$128,580,741.82

Vice-President

I''

Vice-President

;

Municipal Bonds and Notes........

535,055,435.96
10,766,289.01.

of the Federal Reserve Bank...........

1,200,000.00

Other Bonds and Securities

(in cluding Shares
of Morgan Grenfell 4' Co. Limited)........

I. C. R. AT KIN

Loans and Bills. Purchased........

15,697,733.80

11

......

116,959,509.44

Accrued Interest, Accounts Receivable, etc...

State and

Banking House

3,000,000.00

..

Liability of Customers
and

H. P. DAVISON*

on

Letters of Credit

Acceptances.

CHARLES D. DICKEY

/

,v. *....

.

'

74,058,514.92

.

Other ReabEstate

•

;

G US TA V METZMAN t

President New York Central

^

|

;

Railroad Company

V

—-—

...

1,846,206.66*
351,835.54

Credits Granted

2,534,660.83

Acceptances—
Accrued Interest and Accounts
on

Receivabl e_

3,772,993.97

—

254,253.67

Other Asset|

$1,500,836,755.34
LIABILITIES

$20,000,000.00

Capital Stock.

;

W.A.MITCHELL

|

Accounts

Vice-President

I : JUNIUS S. MORGAN*

I ALFRED P. SLOAN JR. >
I■

Chairman Gcneral Motors

Corporation

4E.

TriPPAN STANNA RD
President Kennecott

.J
'

*

8,319,953.98

..

Credit

|6r-Taxes, Expenses, etc.
Dividend;; Payable Jan. 2, 1945

Capital...,.,v».«.../.

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

General Reserve..............

.

I'

Company

JOHN S. ZINSSER

900,000.00

(Less^wn acceptances

held

:

^ portfolio)

Liabilities

3,537^94.86

346,056.70

288,161.84

.............

Other

20,000,000.00

Depositsjiricluding Official and Certified Cheep, Outstanding $24,977,449.53) 1,398,753,586.64
$1,500,836,755.34

4,429,101,56
8,921,242.40

.

.

..

$816>396'6l9J.Z

Securities carried

statement

Chairman Finance
Insurance

/

20,000,000.00

.....

Surplus......................................
Undivided Profits..

2,599,805.25

.

.:

Acceptances Outstanding $3,883,351.56

Issued........................2/39,13435

Copper Corporation

| ;i Committee Hartford Fire
■

3,957,354.23

;

4,159,560.38 $94,757,906.75

Reserves

Acceptances Outstanding and Letters of

;; JAMES L. THOMSON
i

$75/5,549,776.85

Payable and Miscellaneous

Liabilities..............

10,598,346.37

Unallocated Reserves—

$748,229,822.87

Official Checks Outstanding..

60,000,000.00

Undivided Profits.

LIABILITIES

Deposits

198,159,376.05
359,793.50*

——

Surplus

|

53,888,496.74 ;

—.

-J.

Banking Houses

2,739,134.35

Vice-President

| i THOMAS S. LAM ON T

77,035,291.14

Municipal Bonds

-

JmJ%fi0939

~

.....

836,557,275.32

and Call Loans

Loans and Discounts.-

2,597,765.0.1

President State Street

Corporation

$757^1

Mortgages

RAUL C.CABOT
Investment

Rgnlra-

U. S. Government Obligations,
Direct and Fully Guaranteed.

Other Bonds and Investments^

"

and'Fully Guaranteed,.. '...........

State and
Stock

Cash and Due, from

Bankers' Acceptances

United States Government Securities,

■

31, 1944

ASSETS

.

-

\

,

business, December

NEW YORK

% : R. C. LEFFINGWELL
if Chairman Executive Committee

i

Broadway, New York

CONDENSED STATEMENT OF CONDITION

J. P. MORGAN & CO.
*

United States Government securities carried at $243,987,328,53 in the above
statement are pledged to qualify for fiduciary powers,- to ■secure

*

as

required by lata, and for other purposes.

are

$354,478,328,60 in the foregoing:
deposited to secure public funds

at

jand for other purposes required by law.

•

public monies

*

•

.

'

t} Assessed Valuation $4,654,733.00

%

' •

.

President Sharp & Dohme Inc.

Member Federal Reserve

•

*On active service in

the armed forces.

System

Member Federal Deposit 'Insurance Corporation

CHflfter

Membel New York Clearing




House Association

Member Federal Reserve System
Member Federal Deposit Insurance Corporation
'

t Elected January 5, 1945.

to

and

get much more

*

seems

have

that

and

be

seen

I

an

that

candidates
to

accompanied
on a tour of

war,

the

an

General

a

about: isolation

opportunity to talk to sev¬
eral of my business friends who
had just returned from the West¬
ern

decides

commence

In the recent campaign for the

Presidency, much has been said

During the week of Dec. 4th I
had

other nation

some

it beneficial to

opportunity

an

the kind of training

the other

when
-

would prepare them for combat.

165

.

merely

mean" America

On

were a number of things
I did not understand and

secure

v

.

TRUST COMPANY

.

National

that
America
means have comt*

say

:

should

full year's training

a

our

page

General Murphy, but upon ar¬
riving at Fort Benning, he asked
to be transferred to the line. After

benefit from such a program.

.

on

Bank and Trust Co. at Miami

;

which require a lot of time and
limit the period during which the

basic training at Camp
Wolters, Texas, then received his
commission at Fort Knox, Ken¬
tucky. He has been a member of
Armored
Division,
went
through desert maneuvers in Cal¬
ifornia
during the
spring ] and
summer of 1943, then maneuvers
at Fort Benning, Georgia, until he
went overseas the latter part of

1.944.

be

Which
Charles R. Hook

May,

President,

/ There

1942.

He

competent to
and

necessaryin the interest of
tional defense.

going in¬
the Army

in

ex¬

very

final

1944,

h. A. USINA

son,

>is

fore
to

my

real

had

in

appeared

7,

2509)..

with

vinced that

ex¬

perience

Dec.

,

had

business

of

accepted his view¬

feel

not
a

comments

issue

respect, to the number
of months of such
training."
I, feel now and very definitely
that I. was in error in saying that
a period
bine months training

three years of

and the Army.

From my viewpoint, the logical
thing to do would be to enlarge

suspended
j u d gm e n t.
I am sure that
ho arguments
will

country,

this

in

officer

folks

n

of developing

system

fine

very

willing to have
i

and

vious

fracture

a

our¬

• ^/
Editor's Note: Mr. Hook's pre¬

I

serious minded,
and I believe competent to ex¬
press sound opinion,
;
In my letter of Nov. 14th I said:

but

maneuvers

ily agree with
that
position.
am

not we should have

or

not believe that it is either neces¬

war

I heart¬

But I

question

compulsory military training in
peacetime in this country, I can

ques¬

ter

ends.

With reference to the

have

perience, is

particu¬
larly with my
son, 1st Lieut,
George M. V,
Hook, who is
a
Yale grad¬

.

Vicksburg, Vicksburg, Miss.

of

consider¬

-whole

of

tional Bank and Trust Co.

the

for

ask

Na-

Merchants

The

I

./;v through

R. A. GEARY

President,

I

more

uate

and

but because he has

with

others

wounds

ready

selves.

a

point, not because he is

the

discuss

to

subject

now

khow

have had time

such1

am

to prepare and we must be
without notice
to
defend

at

of the first and second vertabrae.
I tell you this so that
you will

in

you

November

revo¬

.

I

wounded

,

the 7th of September. He

on

1/ 1944,-I shrapnel

my

Sine e;I
wrote

the possibility of

wise

you

in Peacetime for America."

part of. other, nations, that I

cannot envision
a

Denver, Colo.

so

seriously

patient at Nichols Hos¬
pital in Louisville as /a result of

-

,

views with respect
to "Compulsory-Military Training

lutionary in our own thinking,
and so susceptible to suspicion on
the

Resident

now

:

Nov.

of

date

Under
gave

am so

tradition

Metz
is

Ohio

al Budget is so severely unbal¬ that
anced, the cost of such an under¬ time is a denial of all that we
taking must have some consider¬ have been standing for in my
ation, Under the circumstances, I generation that it seems to me to
personally feel that a six months' be utterly unthinkable. Before my
period of training is sufficient at time, the fixed thought of the
the moment and if, at a later date, American
people was that the
it is desirable to increase this pe¬ military system inevitably made
riod, the time element could be for war. This nation prided itself
adjusted.
I am not unmindful on having its face turned toward
that our military men have made peace.
With a determination to
a
careful study of the time ele¬ escape the pitfalls of the military
ment
and
there,
undoubtedly, psychology,
the
United
States,
might be certain groups which re¬ steadfastly refused to entertain
quire a somewhat longer period the idea of military conscription
in order to become more profi¬ in peacetime. To depart from this

cient.

was-

'

basically convinced
military training in peace¬

Nation¬

ord in Fraiice up to the time that

he

Rolling

Mill Company, Middletown,

(Continued from page 59)
view of the fact that

American

the

Thursday, January 4, 1945

'

;

■

'

•

■

be

in«t.

fair

we

Volume

be

can

a

THE COMMERCIAL 8c FINANCIAL CHRONICLE

Number; 4348

161

in the world,

power

President, Th©| Ohio State Uni-

Staff to recommend what

gic bases there are throughout the
we would require and
such bases should immediately be

world that

whether they
presumably fly the flag of Britain,
France, Holland, Japan or Ger¬
taken

many.

„

us,

•

,

.

-

high dime for

is

It

by

over

,

America,

with the sense of fairness that I

to take
world-wide manner and

inherent in

think, is
in

over

thus

a

which

are

It should

thereabouts.

or

years

us,

these European wars
started every twenty

stop

costly in Ameri¬
in doiars, and cer¬

not be nearly so

lives, nor

can

sufficient military force
and all that goes with it should
materially help reduce unemploy¬

tainly

a

ment in America.

not

do

I

much

see

difference

isolationist with
live ostrich-like in

between being an

desire

a

to

America, and lining up with Bri¬

and
Russia who are our
friends today but who tomorrow,

tain

commercial

for

might

reasons,

well find it desirable to look
the other way if we needed their

very

help.
;

cannot make all

As I see it, we

foreigners love us, but it is cer¬

tainly within our power to make
all of them respect us.

II. WALKER

BRADFORD

!

President, The Life Insurance

Co.

I Personally

There

think
military
training does a boy a lot of good.
The question how young and how
long the time he would serve
have

would

■p..

a

good deal to
with

do

u n

d

I

it.

readily

can:,

tand

e r s

that

many

families
would

feel, if

considerable

is

question

b

prema¬

training

im

■

however,

At

hope

that

a

would

render. I

the Far

leSS necessaryHoward

L.

Bevis

decisive^-a.
The

in

!

f
H.

Bradford

have.
a

med,

American tradition.

;

is

war

if

over**

warfare

chance

already

talk

some

about

their starting the third war, right
in the face of their defeat in this

undoubt¬

industrial,

technical,

commercial skills

and

well

as

as

the

strictly military skills. Uni¬
versal
trainings if
allowed
to

crystallize

into

dating

pattern

a

from the Civil War

or even

World

War II,

mights become a positive
danger to future defense if it es¬
a^'Set*'

tablished

of

mind

to

must .have

it

think

1

shock

this

country

number

tremendous
men
.

to

been
see

a

rejected.

that the

improved by
training. They have
learned how to receive and give
the military

thought and practice.

they have confidence
themselves,
which demands

respect from those with whom
they come in contact.
I have the greatest respect for

opinion of the Church, but I
cannot believe that this military
the

training given to our young men
will turn
us
into a militaristic
nation.

most

did one of the
astounding jobs in getting

itself

ready

This 1 Country

after the

Pearl-Harbor that has

is

if

in

and

world

when

war,

if

ever

hap¬

have another

we

we

attack on

and my guess

history,

are

not thor¬

oughly prepared long in advance,
the
enemy
will see that this
Country never

a chance to
have this tinrje.

gets

get started as we




drawn to

con¬

a

plans

result

would not be

operation

of

and

only

were

methods of warfare have changed

rapidly in the last

we

will

In

have

probably will change just as rap¬

able army

idly in the next 10 years, there-

effective

an

as

enough time

taken, if the period

one

specialists.

10 years and

in

inasmuch

reserve

be

of.

care

youth but I wonder whether

would

it

year,

any
to

develop

to

event I thipk

maintain

a

siz¬

nent basis.

and navy on a perma¬

Manufacturers
COMPANY

TRUST
Condensed Statement

of Condition

close of business December 31,1944

as at

RESOURCES

Cash ancl Due from Banks

.

.

U. S. Government Insured F. H. A.

State and

Municipal Bonds

.

.

.

.

1,205,104,025.83

.

*

r,

.

,4,

,;

Other Securities

,

.

.

5,142,007.22

.

Mortgages
.

Stock of Federal Reserve Bank

.

a

19.941.305.85

#

f

»

.

.

445,668,127.31

$

,

U. S. Government Securities

•

Loans, Bills Purchased and Bankers' Acceptances

Mortgages 4 . .
Banking Houses'

»

4

,

,

2,220,300.00^

ISr"*

■

21,606,252.39
367,338,388.54

.

I

13.304.092.86

*

4

,

,

,

.

Other Real Estate

Equities . „ ,
Customers'Liability for Acceptances

♦

,

»

.

#

.

,

,

,

*

;

„

.

11,771,030.67

,,

,

.

.

Accrued Interest and Other Resources

Mature Ecoiii>iiiy Manifestation?
We

ought to be

sure

its

that the

for uriiversal training is not
another mariifesfation of the phil¬

'

633,361.99

?

2,954,175.03
4,615,019.49

mature economy—not,

of

stiff simply

a means of
certaih number of mil¬

this

a

mah-hburs

out

of

the

quantity of Jabor power from

production, if necessary, should be
regarded as^::n£cessary evil and
not as an economic goal.

»

,

,,

,

Common Stock

.
,

.

Undivided Profits

•

.

.

,

.

,

i';

8,009,920.00
32,998,440.00

.

,

33,000,000.00

.

419,604,009.64

.

Meeting of the Air

93,612,369.64

~

Contingencies, Taxes,

Unearned Discount, etc,
Dividend

.

4 $

,
,

.

Surplus
Reserves for

:

,

.

,

,

,

10,598,757.96

,

,

Common Stock

824,959.50

(Payable Jan. 2,1945) .
Dividend on Preferred Stock (Payable Jan. 15, 1945)
Outstanding Acceptances
.... f.
Liability as Endorser on Acceptances and Foreign Bills
Deposits. ... ...» » » ■ * '.» «
i
on

.

CLARENCE^ A. PETERS
Director of Research, America's
Town

Preferred Stock.

$2,100,298,087.18

{'

LIABILITIES

urge

.

«

.

.

200,248.00

3,438,845.06

.

.

■VP

240,764.82

1,991,382,142.20

.

As my

experience and training
has been in the field of education,
whatever value my opinion would
have on the subject matter of your
tional.

do*

I

have

these

this

United States Government

the end of
for American youth.
I
at

DIRECTORS

Works, Inc.
EDWIN J. BEINECKE

for American
fined

yoiith should be con¬

solely to "military training,

and should

BOUpervised by mili¬

tary experts, preferably the more
enlightened personnel of the Army
and Navy.
American youth de¬
serve better than routine drill by

West Indies

to

should be

There

attempt

education.

convinced

that

educational.efforts for Amer¬

ican youth

should be directed by

men

who

our

educational^system.

hav$improved and built
One of

the great mistakes we have made
in this
is

a

war

■

.<

JOHN M. FRANKLIN

Chairman, Trust Committee

E'qw York City

JOHN T. MADDEN
President

Vice-President

President, Home Insurance Co.
ERNEST STAUFFEN

SAMUEL McROBERTS

Emigrant

President, John P.

CHARLES FItOEB

President, Curtiss- Wright

Industrial Savings Bank

JOHN P. MAGUIRE

City

GUY W. VAUGHAN

Corporation

-MJr

Maguire

Vice-Chairman

& Co., Inc.

Chairman, Lincoln Savings Bank

C. It. PALMER

PAOLINO GERLI

of the Board

ALBERT N. WILLIAMS

President, Cluetl, Peabody
& Co., Inc.
:

President, E. Uerli & Co,', Inc.

HENRY C. VON ELM

President, Western Union
.

Telegraph Company

Principal Office: 55 Broad Street, New York City
68

BANKING

OFFICES

IN

GREATER

NEW

YORK

military training and

combine

any

no

HAROLD V. SMITH

The. Charles L, Jones

President, Spicer Manufacturing"Corp,

fessional
3.

Chairman, General Bronze

Corporation

Company

HORACE C. FLAMGAN

disintegrating.jsergeants and pro¬
lieutehjnts.

HAROLD C. RICHARD

CHARLES L. JONES

Steamship Lines

CRANDALL

Lehigh

Coal Co,

Simpson Thacher & liarllett

Vresident, George A. Fuller Company

JNew York

President, Scranton &

OSWALD L. JOHNSTON

i'resident, Atlantic, Gulf and

LOU

GEORGE J. PATTERSON

President, Lambert Company

Chairman, The Sperry & Hutchinson Co,

CHARLES A. DANA

militarytraining program

pledged to

-

JOHN L. JOHNSTON

United

Natipfts.J

are

President

EDGAR S. BLOOM

2. Any

$330,979,884.29

at

HAltVEY D. GIBSON

Chairman, Matliicson Alkali

thinjc 'its.extent should be
governed ;";by
the size of the
agreed-upon 5mj1 i t a r y
forces
which form an integral part of the

should

securities carried

h, S. Government War Loan

Deposits of $300,866,523.93 and other public
funds and trust deposits, and for other purposes us required or permitted by law.
secure

EDWIN M. ALLEN

training

war

$2,100,298,087.18

educa¬
general

r,mijs| be compulsory

1. There

commands;

pened

This is

an

military

wonderfully

been

;

future war

argument against univer¬
sal training. "It is a powerful ar¬
gument in favdr of fluidity of

ofyoung

It would appear to me

our

unquestionably be good for

unre-

the •conviction^ f-^

young men I have seen, many of
whom I know- personally,
have

in

appliance Which

symposium; is' • primarily

one.
;

is

automatically

would

The

followrmore

scientific,

as¬

power

country to start another world
We must realize this when
Germans

East

taken

and more the
pattern begun-m this war—a pat¬
tern which, draws
heavily upon

edly

of

war.

the

young

Training

Military

Compulsory
would

career

a

and

Bank

■

will

marketf-t.Tfm subtraction of

political

have no

clusion.

weeks. It
an entire
year shoulcLbiel required
to ac¬
complish the same result after the

labor

changing

we

ing is now given in 13
is not quite dear why

lions

States

and the desire for
expansion may lead

and

for

National

Trust Co., South Bend, Ind.

to military life in any branch

sary

United

*

terrible thing to say, but

the

pects

time

of the servicer'This "basic "train¬

that is to

being able to prevent
future wars.
We may be able to
do so for a period of time, and
then

attract

to

army

CUNNINGHAM

F.

doctrination deemed to be neces¬

keeping

any

the

to
on

subject until after the world

C.

suf¬

a

opposed

Congress

ing would,^junioubtedly, be to
give the "basic".* training and in¬

osophy
f

ever

our

amount

into

of

were

the

by

object -of* universal train¬

of the greatest

one

J do not think there is
of

warned,

1

these

safeguards
It is

o r e a r

Walker

trained. This is

can

o r e

army

in

a

nutshell; how¬
ever, is being
f

ficient

power

possible that any bill
that might be considered at the

not

whole

selective

by

covered

It is very

will undoubtedly require.

The

peacetime

needed

are

much

very

action

President,

that the matter of available man¬

entirely

At the present

made

receive

has been restored to peace.

pulsory training in peacetime for
America. This opinion, of course,
could be changed depending on
the peace terms.
It appears
to me that if the
salaries
paid
to
soldiers
in a

men

idea what the peace terms might
be after the war in Europe and

may

break in

present time it is not
that we have such a bill

service.

be
which:*?

so

that any action
thfe issue

services

being

this

At the present time I am very

is

the

might

man

a

his

any

this question.

on

passed by Congress as the -matter

better kind of
peace

the

necessary

to

surrender

It appears to me

by the Congress before the war is
over is certainly very,premature.

perative. l am
not yet ready,

that

Again I wish to express myself
as

much opposed to any kind of com¬

that might be taken on

such'

make

their views

Abilene, Kan.

affect and in¬

thing

ing

would probably be obsolete by the

that

men

the armed forces.

-

terfere with

s

our

time

■

and

education.

unfair to

at the optimum time in the

Secretary and Treasurer, The
United Trust Company,

long, it would

college

very

longer than six months, occurring

L. W. WILLIS

military train- ing? There'
grave
possb-M
bilityof akindA;
of peace which 4
would, in my: 4
judgm ent

ceptive to the advances of science

boy's

be

„

universal

e

carried too

a

The period of military ser¬
should be confined to not

are fighting overseas if something
boys' was done on this question that
ture at this time in attempting an
educational program, preferably will materially affect their fami¬
answer ..to
the; basic
question; at
the end of the normal high lies, and they certainly should
should
there 4'% ...■,,
school course. ;
&4>-■ .44 ■■44 have the opportunity to present

fniy not be

we

Future

I

4;

versity, Columbus, Ohio

whether

Virginia, Richmond, Va.

of

tional methods.

vice

strate¬

fore the year of compulsory train¬

present time would be out of date
after the peace is made.
It also seems to me that it would

transcends tried and tested educa¬

BEVIS

L.

a

for good, and as a starting
point we should ask our General

power

83

is to

kind of

assume

that there

jG^I* education which

European Representative Office: 1, Cornhill, London, E. C. 3
Member Federal Reserve System
'
Member New York Clearing House Association
Member Federal Deposit Insurance Corporation
Preferred shares, all of which
convertible into and have

a

arc

held by institutions and other investors, have

a par

value of $20 and are

preference over the Common to the extent of $50 per share and accrued dividends.

Thursday, January 4, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

4

"Employees' Pension Funds
v'-:

_,; •

>;-v<";"y

:v{;y

1

"T

-

aAyt"*-

7

rV "< m

iiw /

r.ii

|;l

"Large investors accustomed to
Stock Exchange Commissions
"The investor who doesn't want

Cost Problem

to be 'locked in' for the pe¬

Affiliated

(Continued from first page)

.

Fund, Inc.

'

The Nature of the Distribution

tehs' arid ' institutional

s

buyers

,

of

riod

time

usually

neces-

ends of production are

to -wipe out a 7% load."

;sary

tained

Prosp^etus upon request

Program

1 OF INVESTING COMPflNltS I

markets.

tunate

investment

000

'program

the

CHICAGO

•

•

JERSEY CITY

LOS ANGELES

»

A Good Job
year-end, Lord, Abbett sent a special communication to
dealers giving the final details on the special offering of American
Business Shares. As reported previously in this column, the merger
Business

Shares

Shares has

Until Jan. 31,

arid

1945, sales of American Business Shares will be

made

only against tender of the »
negotiable warrants which have
been sent to the

~

?

—

than 40,000
shareholders in the combined fund.
more

range

'of up to 38% of the number of
shares : now owned at a discount

the shares of American Business
"Shares

will

A Class of

nary

•

Accompanying
a

the

brochure

new

Can

Prospectus

on

lished

Request

Share

'American

in

entitled, "You
Success

the

with

Business

63 wall st.

A tabular

of

performance covering
Three periods—from Sept. 1, 1939 jnipn pf 7%. to a flat 1% effective
■(start of war), Dec. 7, 1941 (Pearl as of Dec. 30, 1944.
The* ahnduncement
further
Harbot) and April 28,1942 (mar¬
ket low)—compares the perform¬ states* "The Trustees themselves
*

ance of American Business Shares

are

•with

their

that

of

the

Dow-Jones

In¬

dustrial Averaged In each of these
three -periods ABS outperformed

the-average. -V,. ( '*

'^

directly,

An important announcement of
•policy' with respect to future sales

y

of

General

has

Trust

Investors

been issued by John

H. Sherburne,

Chairrpan of the Board of Trus¬
tees. *■ The

"reached

Trust

a

having

now

the

where

size

costs

of: management ift proportion to
income is reasonable;" the Trus¬
,

tees

<

have

decided

to

indirectly through
friends and mem¬

f5mflieS, substantial
Thfey
expect to apquire for themselves
for

accounts

they

the

reduce

selling commission from a maxi-

the

Trust

shares.

income.

bility of asset

Investment

retailers,

all

market

goods.
assessed and col¬

may
are

and

Need for Better

value/W^ich Gen¬

of

The

Fund.

Refined to include the costs
"sales promotion (including ad¬

'

5

Securities & Research

National

in

Progress

,

these

measure

upon

,

Fund has been mailed to all pres¬

time

ent shareholders and A. W. Smith

tronics are listed and it is pointed

&

INVESTORS

out

Co., general, distributors, in its

t.-v'vya-

j,

-.v.

1032

v

The

/

'

;

•■:

.

!>»

Distributors

;■■■■H5,"William St., New York
;

•" t "•

.,*0^

A.

continues

customers

send
it is

W.

Smith

as

follows:

&

:

'

,

,

on

5;^

1944.
be

'

all sales, effective Dec. 30,
The dealer discount will

% %.

"V

With

reduced to 1%, a
able

field

is

tomers

of

the

selling., load
new arid profit¬

prospects

open

to

you,

and

cus¬

for

ex-

in

and

this

ginnings in the determination of
unit marketing costs.
We have
barely
started
to tackle these
costs with the skill and ingenuity

Literature

Fund

Steel

of

"These

News and Railroad

Things
V

as

mission commented:2

Impor¬

Seemed

of the Bulletin.

is

Hare's Ltd.—Current

was

copy,of the

memorandum "Current Consider¬
'

ations.".

.

Lord, Abbett—New

.

of

10

Fund,

Inc.

has

per

share

and

Federal

groups,

commodi-

or

Trade

Commission:

"Case Studies in Distribution Cost

;

y

•

Prospectuses upon request

V;

National Securities &
Prospectus
from

may

be obtained

Wholesaling," 77th Gong.,' 1st Sess.
(1941)v p, 1.

de¬

H. Doc. No. 287
•

2

Ex¬

Ibid, "p. 21-22.

authorized.dealers,

or

The PARKER CORPORATION
ONE COURT

ST., BOSTON




•

to

holder^ of record as of the; close
business January 5, 1945. -

of

Dividend^

Incorporated

t

*.

"

"

inson-Patman amendment it has
had special reasons for promoting

improvement of marketing; costing.4 Among, trade associations of
manufacturers and wholesalers, a
have made notable Strides.

few

For

the

retail

associations
stitutions

trades,

and

;

have

several

educational

in¬

made

significant
approaches to the problem. Out¬
standing examples are the Har¬

48

in

this

While

country

there

are

for the tardy de¬

reasons

velopment of interest in this kind
of costing, there cart be no doubt

about its growing importance;

Marketing

costing

;

v

V

presents
difficulties

more practical
factory or production cost¬
ing; but solutions must be found

many

than
if

we

are

to

achieve

intelligent

cost reduction and to defend
many
of these costs.
The text books

by

commodity, channel of dis¬
tribution, territory, quantity, size
of delivery or sale, method of sale
and method of delivery. Naturally
the

fineness

depends
problem.

on

of

the

the

classification

nature

the

of

The most difficult task is sound

allocation of joint costs. In Tnanu-

factoring and wholesaling this in¬
volves apportionment to functions
and often to commodities of. such
expenses

as

sales

supervision,;

offices,
compensation
of
salesmen, advertising, warehous¬
ing,
/transportation,
delivery,
credit service and collections and

general

and

administrative

The

justification of

ex¬

the"
costing expense must, of course,
be appraised ,ito relation to potontiaJL savings. 'Since many arbi¬
trary decisions must be made in
penses.

deciding the proper bases for ex-*
pense allocations, some allowance
or judgment must
always be made
for probable error.
Cost accountJ
3 U. S, Dept. of Commerce, Bu-;
of Foreign and
Domestic
Commerce:/''Distribution Cost Ac¬
/

reau

See

bibliography, p.. 80-83.' Also;
"Effective- Grocery Wholesaling,".
Economic; Series, No.: 14 (1941),
«
4 Federal Trade Commission,
cit, p. 14-.15, 17-18.
;
:
„

.

-

5

Malcolm

.

P.

McNair,
Costs,: .an

.

op#

;

.

alj

et

/ Inters
; Ltd.—A
dividend of "Distribution
share payable on Stock national Digest," Graduate School
of
arid Bond Group Shares to hold-!
Business'.Administration; Har-(

37 Vz0 per

>

Wall Street, New York S, N. Y.

costs

abroad,5

several

Securities,

•

'y National Distributors

: :

dividend of 630 a share
of 100 a share
payable Jan. 15r 1945, to holders
of record Dec. ,30.
Institutional
ries B-3, a

HUGH W. LONG and COMPANY

CHICAGO, 208 So. La SaUe St. (4)

.

Keystone; Custodian' Funds—Se¬
and S-4, a dividend

1

Management Associates, Boston' Mass

.

BROADWAY, NEW YORK, (5)

LOS ANGELES, 634 S. Spring St., (14)
BOSTON, 10 Post Office Square (9)

been interested in the Subject; and
since, the enactment of the Rob-

counting for: Wholesaling," (1939);

per-share payable January ,15, 1945

\Research:Corporation*
120

pioneering work in this
of accounting, especially
for
wholesaling.3
The Federal
Trade Commission has also long
branch

.

traordinary Distribution, of 5 cents
"

Department of Commerce

its

accounting for Manufacturing and

Ordinary Distribution No. 26
cents

procedure such costs by

customer

of Directors of Man¬

Bond

few

routine

MANHATTAN; BOND FUND, Inc.
clared

experimental

alyze, and control costs of distribution.
Even
today
rela¬

i

hattan

the

Until very recently there
little urge; to ascertain, an¬

business concerns,
either large or small, find by

prospectus, dated Dec. 30, 1944.

.The Board

: in

still

tively

prospectus on American Business
Shares dated Dec. 22, 1944.
General Investors Trust—Revised

.

-

stage.

.

.

ample:,"

na¬

sales

"Distribution cost accounting

Calvin Bullock—Cur¬

.

issue

rent

factory costs.
As recently
1941 the Federal Trade Com¬

with

Equipment News. . . . Selected
Investments Co.—Current issue of
tant."

widely in evidence in dealing

so

"Distributors Group—Current is¬

.

reducing the selling load to a flat
;

marketing expense, but we know
too little about functional costs,
we have made only scant be¬

for elec¬

uses

participation

a

Mutual

sues

:

■:

for

;

com¬

letter

Co.

New

industry.
that

growing . industry
is
available
through Industrial Stocks Series.

"We call your particular atten¬
tion to the action of the. Trustees
1%

-

'■

your

•

:^®BULlMANAiH£llfOfl.5ISGL
yvf;'

of

any

that:

subscriptions directly t© us,
our desire to pay you %%
mission on any such sales."

FUND Inc.
Founded

"If

this

in

reduction of and official studies stress the. need
in no small for & variety of classifications and
the development
commonly,, mention classification

A Subscriber's A p.p 1 i c a t i o n
Blank for additional shares of the

..

states

companies

little

the

Corp., in Letter No. 13 on Indus-' 'and* > use of better .costing tech¬
trial Stocks Series, refers to elecniques;
We know a good deal
the natural divisions
of
tronics- as a billion-dollar peace¬ about

letter to shareholders

done

are

costs depends

;

REPUBLIC

have

Much credit is due the United
States

and

has

vertising), direct soiling, storage,

;;.
..a"i
Billion-Dollar Peacetime Industry; •

has afforded
/

any
sub¬
A consider¬

large and
tionally important firms."

short discussion

a

Hugh

and which your Trustees are "de¬
.

made

progress.

distribution

Costing

handling and delivery of the prod¬
ucts being distributed, credit and
of how the competition of billions
collection activities, and all other
of dollars now seeking investment
office supervising and
adminis¬
makes generous investment return
trative activities necessary to a
difficult but still possible to ob¬
proper functioning of the distribu¬
tain. Copies may be obtained froih.;
tion process."1
W. Long and Company. u
folder contains

income': and sta¬

termined to maintain."

pier-

Distribution cost accounting

*

versified

Trustees

without paying a
large premium or selling commis¬
sion, and to participate further ih

eral Investors Trust

Thfe

"Tough Competition" is the un¬
usual title of a new leaflet on Di¬

represent

their holdings,

of

ulti¬

been

believe that many present share¬
holders
would
like
to
increase

the benefits

interesting leaflet on
Speculative
Shares,

as

amounts of

The

product is
delivered and

haps serviced.
They occur all
through
the
economic
system
wherever goods of any kind are
sold. They are costs of producers,

capital gains is worth as much
$125 of additional ordinary

bers of thei!

Substantial Additional

final

sold,

had

stantial

„

holders of the Trust shades*.
and

General Investors Trust

number

•

or

clients,

cost accounting, only
had made..any start in this
and a much smaller

direction

major objective of Diversified
lected ks constituent parts of the
Speculative Shares is to achieve
capital gains and the leaflet points prices of commercial goq<Js and to vard Bureau of Business Research
:of
out7 that, as a result of present some extent as specific charges. studies
department
and
This is the simple, what, when,
tax laws, capital gains are worth
specialty stores' expenses, spon¬
sored by the National Retail
more to the average investor than where, who, how and why of mar¬
Dry
keting costs.
The reduction of Goods
Association.
ordinary income.
Perhaps
these costs is the broad question specific mention should "'be inade
For an investor in the $7,000
before this group.
of the Harvard compendium of
tax bracket, $100 of additional

new york 5. n. y.

•

the

mately

York

GROUP, Incorporated

of

Amer¬

per¬

They be¬
gin when raw materials are stored
prior to movement, and they end

the new series of New
Stocks, Inc., recently made- wholesalers,
available for public distribution. others who
These costs
The

DISTRIBUTORS

in

time and place utilities.

of

one

pros¬

new

ican Business Shares."
'record

an

tribution
34

incurred

costs that

when

Diversified

pectus and the announcement data
:is

'

'

way.

types and sizes; selected because
a
probability that they had
developed a procedure of dis¬

direction

they embrace the wide variety of
arise in the creation of

objective—-he is, therefore,

When $100 Is Worth $125

Croup Secutities, Inc.

are

indirectly

Commis¬

of

marketing costs,

that

costs

and

The

able number of these

the

Hugh W. Long & Co. has pub¬

available to the
public through dealers in the ordi¬

or

studies.

sion's field survey , . . showed
that out of 137 concerns of many

operations.

forming marketing functions.
In
dull language of econdmics

.

growth."

b.e

those

are

directly

seeking the type of investments
which will provide liberal return
and
opportunities
for
capital

if Shares

of 1.6% from the regularly estab¬
lished offering price. After Jan. 31

special

Scope of the Problem

Distribution,

^in. moving toward his long-

N

liow Priced

.

.

The

incurred

are

ascertain such costs, even on
periodic occasions after making

which

an

for emergency purposes.

The warrants authorize purchase

of these business

primarily interested in
estate; that he has
years of earning power ahead of
him and that he has already ac¬
cumulated a backlog of War Sav¬
ings Bonds or other reserve funds
creating

American

into

ac¬

describe

economic

investor is

'

been effected.

now

Fund

Maryland

to

term

a

other like cost classifica¬

or

jointly
in
respect
to
such
classifications; and npt many

"distribu¬

processes that oc¬
production and con¬
sumption.
Such usage tends to
focus
popular
attention
upon

Keystone Corp. assumes "that this

At the

Income

as

ties,

tions, where costs

Medium-grade bonds_,000
the
ultimate distributor and to
Low-priced bonds
2,000
obscure the importance of prior
High return bonds.——— 2,000
Income preferred stocks
1,000 costs of a like economic character.
Income common stocks--—- 2,000 Undoubtedly,."marketing" is a bet¬
Speculative common stocks- 2,000 ter term than "distribution." The
connotation
is
broader; and it
In
setting up this program. stresses the functional character

;'^^^Mu1|^ial Fwids
of; Quarterly

word

the

,

unfor¬

between

cur

follows:
NEW YORK

somewhat

is

that

ceptance

$10,for a

The division is as

busine^ man.

INCORPORATED

It

tion" has acquired such wide

Keystone Corp., in the current
issue of Keynotes, sets up a

Lord, Abbett & Co.

finally at¬
satisfactory

finding

by

Business Manrs Investment

ers

of

Record Jan. 31.

vard

University (1941).

•

-

/

i'X ;■

•

'

:

-

-

■

■

■■

'

:

■■

■

•'/-V i.

;

ii

;•<!

Volume

Number 4348

161

frequently happen that
-the cost analysis will indicate that
may

Man item is being sold,
performed, at

service
considerable loss,

a

or a

but the item or service may nev¬

ertheless

be'

necessary"'for

com-

even

other reasons.. How¬
in such cases the an¬

may

be helpful- in bringing

•petitive
ever,

alysis
.these

or

control.

better

under

costs

items in
numbers
small dealers may not always
justifiable on a cost basis,'but
the

Similarly,

of

sale

v«.

THE COMMERCIAL & FINANCIAL CHRONICLE

,

,ing, like other business devices, is
a guide and not necessarily a sub¬
stitute for* business judgment.
It

••':

A few illustrations will
/ /

ing costs.

clarity tne point.

,

A few years ago

automotive
down

on

was

said that

were

Detrorf

often

was

keting

at

obsolescence

Perishable

other

and

about

retail

made

have

trades

considerable progress in

classify¬

ing operating expenses by natural

/divisions, due perhaps in part to
the

of

pressure

determining

net
Among

income for tax purposes.

the

larger and better managed
functional expense an¬

concerns,

alysis

But not very
in

done

well developed.
much has yet been

has- been

costing.
A
pioneer preliminary study was
■made several years ago by the De¬
partment of Commerce for retail
grocery and drug trades.e
<
commodity

"/ Commodity cost analysis in the
-retail trades is complicated by
-several factors../ The wide variety
and number of items, and the rel¬

atively small quantities of individual items sold,, may make ex-

.tensiye item costing immany' con¬
cerns financially impractical. Ob¬
viously; there is a;-large sector of
.the, retail trades that will never
.be able to undertake such costing.

Department/

-

have

stores -

done

/ much work in departmental cost¬
ing! but allocation of indirect ex¬
pense

■

/

upon,

of

basis,

the

sales,

/space occupied- and . other factors
"often .affords an inadequate meas¬
ure of true costs.
There is need
.

/for

.of
for

study of com¬
If practical ways

experimental

modity costing.

determining true selling costs
individual items could be de¬

efficient

WHitehall 4-8980

of

movement

cost
reductions.
railroads will

important
war

our

rehabilitate their ways and struc¬

high-speed

new

secure

there is
on

trade laws,

possibility of passing

no

to the consumer.any

that

more

economies

scientific costing might

permit. As in manufacturing and
wholesaling,
tradition
and
the
'necessity of meeting ignorant and
blind competition will frequently
.prevent full use of the results of

\

better costing..

comments indicate some

These

the

of

that

difficulties

must

be

faced in securing better account¬

ket

familiar

Nor

marketing students.

contribution

the

•

/promise

/

for

intelligent

cost

re?

Many

f

that/the

poor

While it is difficult to differenti¬

■

little

costs.

Some of these costs

cal remedies for

some

cessive

and

of the

bur¬

source; )

business

social

dens

selling

and

greater

of

use

and
be

in marketing seasonal

-

and

retail

in

pense,

Perhaps

we can

do

more

proaches

to

a/reduction, of

the

that

in all

occur

whether

move¬

they

are

.charges for assembling raw

ma¬

costs,

It

•

in production
.significance is,
.therefore, lost. New methods and
better uses of existing methods to

/are

buried

often

costs

•

'J

r

move

-

various
no.

other services

specific

for

customer

made.Much

has

which

charge

been

is

written

about these service costs and the
.

for

need

rational plan that

some,

will; not. require

the

.

cash

and

customer to pay for services

carry,

stop wastes at the point of origin.
They .often begin with top man¬

machines

.quicken product flow into. con¬
sumption -lowers interest, ware¬
housing and many- other market?
6 U. S. Dept. of Commerce, Bu¬

reau

"of

"Foreign

7

Cf,

and

Survey"
and

'Louisville

Domestic

(1930).

*

Profits

Grocery

Also ' "Costs,
ih the

Drug Store" (1934).




KuzhWtsJ

"Com¬

Simon:

nomic- Research, Inc.

(New York,

1938)/ Vol. I, p. 228-230 for inter¬
table

of

freight

rates

in

formidable

a

ment

of

But

petition

than full,service

long

as

prevails

as

and

-

INCORPORATED

free

NEW Y0RK

Western

-»;f

with

/ quietness

the

NY-M045

RECTOR 2-7231

be

tone

and

Canada,

strong

a

continued

i

there

switch

was

of

in

pricing plans 9
these service costs.

to

/appears to be scope for profit^
in exchanging Dominion" 4s Of

.the

;

1960/50

/>

/w/./;
.

,

There

Turning to recent events, it is
gratifying to note that the ratifi¬

was

for

National

a

was

Albertas,

cation of the-

but

-

9

of production.

Cf. Kuznets, Simon: "Seasonal

Stewart,

hurst,

J.

Variations in Industry and Trade,"

tribution

National Bureau of Economic Re¬

Cost

p.

Inc.

13-30.

(New

>

York,

1933),

method

of

"Does

Too

Dis¬

Much?"

Century
Fund.
Inc.
(New York), 1939), p. 351-352.

(Continued

/

on page

86)

■

interest in Montreals and Abitibis

U: S.-Canadian

still

in

evidence/

Internal

trading

bonds

Of

continued brisk in gold shares and
the Canadian dollar in the "free"

double: succession .duties ' has

been

followed

by: an agreement

Quebec for the

same purpose.

This should prepare the way for
similar agreements between those

remarkable, especially/in/view;/of

this country where the impact of
the inequity of double taxation

With regard to

•/

but.

the marked increase in the volume
of transactions, and the Canadian

Canadian Provinces and States in

has been most acute.

inactive

market finished firm /at 1014%
discount. The stability throughout
the year, of free funds has- been

between the Provinces of Ontario
and

were

dollar

:/

provides the only im¬
trading medium on-the
exchange market. •
'
now

portant
free

the market for

the past week, the long period of ;

(Continued

on

page

8'7) (

We offer:

t-j-'j (• j'

$82,000
,

Province of Nova Scotia

V;

—vjr

(non-callable)

wc/v/ M

-i,

v

Payable in U. S. and Canadian funds

Priced to

yield 2.75% :

Taylor, Deale

&

Company

Twentieth

Retail search,

/

slight reaction in
the recent buying

4V2S, due Nov. 15, 1953

Paul W., and Dew-

Frederic:

of;

5s

tax convention for the elimination

-

Responsibility for Cost Reductions

fourth

// r1 M

connection, there still

1970/50 or4Hsofl951.

than limited progress toward

differentiated

a

to
to

consumers

and
get these services
specific charges for their
performance, it remains difficult
or practically impossible to make

Perhaps

under¬
the

,to

Dominions

;//M' //'•

In this

*

up

were scarce

comparable maturi¬

ties. >:•/// /

re¬

beneficially felt throughout

the Dominion.

;

disposition

a

direct

from

Nationals

Sirois

obstacle

was

year-end. High-grades

be

new

/;

^

N. Y#

5,

without

recoup

/V,/'}^./';.V

com¬

demand

more

1//L

TWO WALL STREET

materialization of which would
-

;;

Mr ■

A/ E. AMES & CO.

percentage of value at the point
8

Commerce:

•Sales,

be-

modity Flow* ;ahd Capital Forma¬
tion," National Bureau of Eco¬

esting

'■(

produce,

can

.

the path of the proper develop-

>

livery service, the return goods
/privilege, open credit service and

stores.

and

of

,

at lower prices

.their

and

•

same

/Royal Commission and thus

are

-J t.'>"■4.^; Si

'

can

%

;

recommendations

may

a

this marketing cost problem is to

terials or for retail deliveries. In agement ; in manufacturing. It is
manufacturing, particularly,, they not enough to know what men

|

possible date to implement the

textiles

some

..'Hi. I-}: '<w,\

the willingness

attributed .to; the
ilr

tj-v. ^ v., -i

CANADIAN STOCKS

-should be taken at the earliest

he may not need and does not
A second broad field for the re¬ time wastes in marketing. /
duction of marketing costs will be
want.. Chain grocery stores and
Reduction of Wastes at Point of some other
jfound in improved procedures for
types of retail out¬
•the prevention of time wastes in
/'/: - Origin /•■/. .'/:///. ■ ;•■;/./::/ lets have met this problem by
A third method of dealing with
/performing marketing:functions.
selling on a cash and carry basis
ment

v-

the de¬

washing

without

number of expensive cus-i
services add materially to
operating costs.
These services
include free or. ultra-liberal de¬

must

oeriods, there, are right and wrong
to incur extra, selling ex¬

CORPORATION

period of
the .economic

es¬

consumer use.' • r

nary

times

as

textile

often too poorly finished for ordi¬

with

business

because

municipak^';

elsewhere in the West to lis¬

cause.

'

.

ten to socialistic doctrines

directly

*'• v.1

.■

.

PROVINCIAL

drought

berta default and

};/fAdditionalbkne^ayings/will-fee: r?jTn;;retail ; marketing;^ particu- j

question

GOVERNMENT..

'v.'.

of the electorate in Saskatchewan
and

the

(

/These wastes

de-- '

Therefore, it cannot be suf¬
ficiently emphasized that steps

-of

case

ironing instructions.
added

of

use

mechants,

the

sold

products

price concessions.**
These
other methods of effecting

economies

for

costs

season

and

of

pecially

off¬

,

J/ /

CANADIAN BONDS

power,

early Thirties,
consequences of which were borne
by the Prairie Provinces. The Al¬

This -is a perennial
additional / / operating

product.

they create.
There is need
for more complementary product

care

and

the

„

the

for

ex¬

—r—

,

has

constitutional

times of crisis such

It is not unusual for an ava¬
appreciably lowered,
but no one can study these wide, lanche of customer adjustments
seasonal variations and still be; jo be precipitated simply by fail¬
satisfied that there are no practi-{ ure to furnish proper instructions

..

Reduction, of Time Wastes

adult

as-an

certain

pression

be

cannot

spariies to furnish vigorous leader¬ to avoid or at least minimize the
ship in this important work,. :,r; M: costs of these timing errors.
'
•Such
are ;/ some .-of - the / ap¬
V

Canada

.

create-demand.- Still, within short

.

when

success.

Poor styling, like
poor
design, may result in in¬
adequate sales and high selling

Perhaps it is not too
expect that these pres?

(marketing wastes may cause trade
iassociationsanjlprogressi ve.com-

——

opportune, therefore, at

stage

that

expense.

/costing '.problems / closer

Isures and the,need for reducing

is

externally

tomer

to

■

■

un¬

clearly consolidated her position

that is later corrected at consider¬

able

larly,

much

degree

.

sales, promotion expenditures to
general business conditions; but,
in a sense, this statement begs the

{these

a

fects which impair internal co-t /'.
hesion, be urgently re-examined.
Designers
often lack practical
The clarification of the relation-1
knowledge, of the conditions under '
which products will be used. /Fre¬ ship between; the Dominion;; and ■
tempo in marketing ' is not /anU
e Provinces, the uncertainty of
quently the users of important
tended to obscure the place sav¬
hich has been a bar to complete
products draw their own designs
ings 1 -that improved transporta¬
to hasten the adoption of change^
ational unity and has led to eco-i
tion will also make possible. r//' ; :
that
should have been in the nomic / disequilibrium : in. the
Closely related to better trans¬
original plans. It took a long time Western Provinces, should not be
portation is the possibility of im¬
Tor
manufacturers /of
vacuum further % delayed.
This
question
proved stock turnover for mer¬
cleaners to be fully conscious of should be considered outside the
chants now located some distance
•the urgent need of finding ways range of. party or provincial pol-'
from their sources of supply. The
to;.reduce .the weight of their itics and should be raised to.the;
false economies of extreme turn¬
products. Too often products are plane of a national issue of par¬
over need not
concern ushere;
not designed to permit easy and amount importance. :
''/v;/
;
but there is much in the principle
inexpensive... maintenance • -and > Much of the apolitical unrest in;
of sound turnover policies/ that
service./ Lack of standardization the West is a direct result of the
can
be adapted
with profit in
of parts is cften a sales barrier inability of the Dominion to act r
prior " stages of* the "marketing
in

properly between time and
place utilities in marketing, this
emphasis of the need for increased

/realized by better adjustment of

.attention.

v.' ..V

It

table.

has

product

chance of real commercial

ate

/State and Federal/laws, manufaciturers and ^wholesalers must give

'■■"[Xr.

on

maintained to

this

edits1

marketing
the drafting

The mechanical design may be so

jductio% ■ TOder / the ^ressure of
'

high

originate

air

of

System Teletype NY 1-920

surpassed by any other belligerent.

.

transportation in particular cases.

marketing.

request.

on

Street; New York 5

of the Canadian dollar has <£*

power

I been

scrutiny;
and frequently the delay is ex¬
aw
tremely costly.
v/
costs get close executive

we

can

meth¬

production costs is fully appreci¬
Then, selling plans 'and

haul

cross

of marketing costs.
Yet no products may be explored
/other single effort offers greater prdfiLC^Z^iT: ;y; v/';'
!.y

available

Canada is still in a youthful stage of
development, the Dominion finished the year as the second largest
exporter in the world with industrial production and cash income at
unprecedentedly high levels.? Furthermore,, owing to the excellent
control of prices and wages and the fact that more than 50% of the
enormous war costs are being, covered by taxation, the purchasing

ated.

question will doubtless engage
again serious attetntion of many
overlook

.-

pamphlet,

a

By BRUCE WILLIAMS

before the

often saturated

is

necessity of better selling

The

t...

...

■/,:■.' In spite of the fact that

ods to increase sales and maintain

costs.

.,

Canadian Securities

sold

If they properly mer¬
chandise low cost, rapid freight
movement, the marketing of goods
will be accomplished:
at lower
equipment.

ing

''■>'

be

can

motive power and other improved

* • / ; /,
veloped, there would be much op¬
Another-time-saving in market¬
portunity for more efficient mer¬ ing is reduction of the
costs, of
chandising.
Where retail prices high seasonality of
production and
under fair

what

is' known

profitably.
It is a fair criticism
that production-minded manage¬
ments tend to neglect marketing
costs.
The easy part of the mar¬

^processes.

fixed

Bell

•

it

capitalize on this experi¬
shall miss an opportunity

ence, we

tures, and

is

'/

'

/

.

-

that knowledge does not ac¬

cause

v

are

-

14 Wall

fail

After this

•

Incorporated
Y.

quire high commercial value until

for

,

.1'

Wood, Gundy & Co.

goods during this war; and if we
to

which

Toronto Stock Exchange

31 Broadway, New York 6, N.

food

for

continuing the practice.

t:

*'•

of

copy

CHARLES KING & CO.
Members

costs.

products repre¬
sent still another example.
We
have
learned < something

/•/; The

'

More

minimum.

a

examples; are commonly
styled consumer
goods when shortened time spans

there may be other sound reasons

f ;/M

Bought—Sold—Quoted

in highly

of

"'/•

.

'v

These appraisals are contained in

extreme

found

cut

be

'v.-

time delays in mar¬

cases

are

•'
'

'

men¬

tioned/for rolling mill products.
In such

Year-End Valuations of Canadian Securities
r-f

STOCKS

while they
and
similar

warm;

rapidity of flow

small quantifies to large

•

CANADIAN

- laid
Cleveland docks for

to

still

"

it

castings

,

the

shipment
were

85

64 WALL

STREET, NEW YORK 5

WHitehall 3-1874

'x-:

THE COMMERCIAL & FINANCIAL CHRONICLE

86

Walter

■

f Electric Bond and Share Company
i

Announcing

$6 and $5 Preferred Stock Dividends

The

share

regular quarterly dividends

of

$1.50

1945, to the stockholders of record .at/-the close
January 6, 1945.
L. B. WIEGERS,

Treasurer.

any

«#

A

tistical

and

which

regular

a

December 28,1944

share

FINANCIAL
WORLD

35 cents a
the Capital Stockr

on

of

Sar value declared, payable
been $13.50 per share,

7902

Founded

as

y

Feb. 28,1945, to stockholders
of record Jan. 31, 1945,
.;

THE UNITED GAS IMPROVEMENT CO.

his

86

the

features,
reader

for

copy

ing

to

Trinity Place, New York 6, N. Y.

subscribe, inclos¬
lot of valuable material

a

which I

frequent

advertising message will

pa|s

can

on

to

you as

my "original"
would know

Work. No one
thj^difference
unless they read the other
guy's stuff first; It isn't ethics
that stops me. ^1; don't under¬
stand the stuf| well enough
to pass it on. And who knows
maybe some reader ) may ask
me
to
explain ; and ; where i

be^

g s

*

H

!j{

Another cookie you

have oh
hands (on my advice) is
Climax Molybdenum,
You
Advertising Forms Close Jan. 11.
got this one at 341/2, stop 33,.
1945
After a lot of hemming and
hawing it's still at 341^. If it
doesn't- get
across
36 by
Thursday (that's. When you'll
would I be.
ffc1read this valuable column)
%
*
give it back.- Let somebody
So this year^deair reader, else
earliest stages of its creation. The
worry about it.
:
raw
materials to be used in its you'll have to get-along with¬
*
'?
1
seen

Weekly

treasurer

dividend

A

Your

America's Investment and Business

THOS. A. CLARK

reference

encourage

me an

invitation to

consultation and guidance.

andv£l^

The transfer books will not close.

V

prognostfeator in the

United States haCsent

"year-round'* guide with sta¬

retain

of Directors has declared

trends, social and po¬
changes. I could do it
For in the last few days

every

PRODUCTS CORPORATION
The Board

easy.

January 17, 1945

S"S

quarterly dividend of 500 per share on the out¬
standing Common Stock, payable on February 1,
1945, to stockholders of record on January 15,

litical

FINANCIAL WORLD

vF.AR'

,

NATIONAL DISTILLERS

1945.

nomic

FORECAST NUMBER of

of business

Whyte

(Continued from page 62)

ANNUAL REVIEW &

per

the $6 Preferred Stock and $1.25 per
the $5 Preferred Stock of the' Company
been declared
for payment February
1,

about the market
probably panting to
hear.
Hmmm, let me see*
You're still holding American
Smelters at 39^, stop 38.
Stock is asleep at about 40
and is beginning to look like
it wasn't
sleeping. Maybe it's
dying. Anyway, if it isn't
across 42 by the time
you
read
this, better get out.
There's no percentage
being
stuck with a sleeper.
;
n

you're

Savs——

;r

,

on

share on

have

t h i

Tomorrow's Markets

DIVIDEND NOTICES

r

Thursday, January 4, 1945

again and again.

Rate Card

Request

on

your

;
.

*

v

•

'

JOHNS HOPKINS,
December 26,

1944

treasurer

;

finished

_

Philadelphia, Pa.

manufactured

It

stage.

haS generally been impossible to
determine
marketing
costs

'

.1!

manufacture

efficiently pro¬

are

through the prior stages; but all

duced and marketed under stable

The Nature of the

production
costs
contain
some
marketing costs of previous pro¬

price

Distribution Best

ducers.

out

Critics

(Continued from page 85)

selling at wholesale and retail are

toward
frequently ignored, yet costs are
marketing costs lies in a functions of the
quantities sold in
public understanding of the the individual sale.

making
better

progress

some

Too often it

nature of these costs*

is

blithely assumed that

the re¬

sponsibility for high costs rests
principally .upon the national ad¬
vertiser and the retail and inter¬

The service

distributor.

mediate

that the

public demands, the nec¬
complexity of our eco¬
nomic processes and the costs of
economic
freedom
are
seldom
essary

Marketing is

properly appraised.
an

intricate process with cost re¬

sponsibilities

that

extend

way

back to the primary stages of pro¬
duction.
'•

The.

distribution

relative

of

these costs is not well understood.

Primary,

intermediate

and

final

costs of

marketing are not always
separately distinguished in public
discussions.
In a notable study of
marketing costs in 1929 it was
stated: 10

"Although

retailing
is
the
most costly single phase of dis¬
tribution, the total of costs in¬
curred prior to this final stage
is about twice as large as re¬

tailers' expenses in selling fin¬
ished goods to the consumer....
j*.

Manufacturers'
costs

not always careful to

judge marketing costs in relation
to
the specific
functions
per¬
formed.
The high differentials in

Problem: Walker
lower

are

are

distribution

r

estimated

$9,000,000,000;

at

about

Occasionally

official studies 12 calmly

prescribe

elimination of intermediate

keting functions

consideration

scant

transfers

of

mar¬

remedies, with

as

resultant

to

the

social

costs

amount

000,000.

to

All

about $7,000,-

costs, to¬
gether with national advertising
and certain minor items,

equal
compared

$26,000,000,000,

as

with

$13,000,000,000

less

than

for retail trade."

While;

there

studies of the

significant
marketing costs of

manufacturers,

are

wholesalers

and

retailers, small progress has been
mac[e in determining total mar¬
keting costs for individuaP com¬
modities.
Where studies n have
been made for individual products

like automobiles, agricultural ma¬

chinery, flour, bread, cereals and
paint, the costing begins at the

of averages expressed

use

dollars

sales

of

percentages

business
purposes
when
properly interpreted; but, in the
hands of the unskilled, their reck¬
serves

less

unwise

and

perpetuates
misinterpretations of marketing
costs and promotes much naive
use

and unjust criticism of marketing

In many cases

costs.

nate

use

indiscrimi¬

of averages constitutes a

National

major statistical crime.

io

Stewart, Paul W., and Dewop. cit., p. 171.

(,ii Report of the Federal Trade
Commission
on
Distribution
Methods and Costs: Part I, "Im¬

portant Food Products," Part HI,
"Building Materials";
Part IV,

to

total net sales; and retailing runs
a close second.
In the former case

and labor

efficient and

might point; out that I

have

un¬

cide

interrupted production. The pro¬
duction organization is among the
most competent in the field,
The

secrets in how I de¬

no

the market:-All. I do

on

market decide for"

the

let

is

So I'm

wr^ng sometimes.

Who isn't?

identified

properly

It is

I'm

run

still

Raise the stop to 22

r

find

that

33 Vz and is

the stock market.
way ; those
count;
•
■

''

•

f

"'V-4•''

*

don't

-

■/:(&■<
•''

has been up to 38.
#

So far

But

conditions.

The selling plans are carefully
drawn with the best scientific aid

price

may

much

more

cautious

of

use

per¬

centages.

short, if we are to make
progress in reducing marketing
costs, there must be broader

un¬

derstanding of the highly complex
nature of the problem and relative
responsibility of producers, dis¬
tributors and consumers for these

There

costs.

light
and

on

more

is

need

studies

of

Conditions

vide

for

of.

marketing,

its

we can

costs

and

for Economical

obtain

a

clearer

idea of the methods for reducing

marketing

costs

if

we

roughly

series of conditions nec¬

for the ideal marketing of a
product. We will begin with the

essary

12

cit., xParf V.

dividual

skilled

The plans pro¬
selection

dealers

are

the

of

chosen

,

In¬
for

their

outstanding competency in
their respective markets,
Their

continued interest and loyalty are
cultivated.
The consumer mar¬

all pre-tested before final
decisions.
The discount and al¬
kets

are

planned

Marketing Costs

a

shrewdly devised by highly com¬

lowance

factors in the marketing process.

sketch

give.
Advertising
promotion,
dealer
helps, and other, sales aids are

more

intelligent cooperation of all

Ideal

that marketing research can

character

for

the economic

significance

better

;'

best channels of distribution.

In

has shown at

and ingenuity are used to make

petent specialists.

is
soundly
promote orderly, ef¬

system
to

•

as

Jj:

stocks

any new

concerned I'm still under

are

the influence of that soda in

that

Knew

drink.

mixed

shouldn't have done it.

v-; More next

I

Any¬

!

Thursday.
—Walter

wind. I qualified it, however,
by saying that; Reaction po¬
tentialities Would be reduced

retail

even

»f.

■

increase; but if the
has
gone
down

particular item

Put your

stop up to 35 and sit back.

/'■'.V

that

stant or

took at

about 37 and

And any¬ New Year!

cplumns

tentials under competitive market

percentage cost of

now

Fn| right, that's

selling a
remain con¬

high in relation to sales; but

pear

the absolute cost per unit of per¬

is Timken-De-

Whyte

tagged

and

All possible skill

use,

one

way here's the end of the
only to be expeeted. If I'm
wrong it's becfrcrse~you don't page and you'll have to be
understand thef fine points of satisfied until next week, 'py

the

ap¬

and

and let it

troit Axle which you

fahehd of the

Of course if you want
to argue about It I'll refer you
to the fifty-tWo columns I
Wrote in
1944|; If after you
game*

with appropriate instructions for
care

got it at 21V^,

But in the final

me.

company is

use.

little

a

ride.
The last

I

forming the marketing function
may be trivial.
In the latter case,

percentage expense may

tbid. Pare I, p. 15-16.
is
Products,
Automo¬
Borden, Neil H.: "The Eco¬
biles, Rubber Tires and Tubes, nomic Effects
of 'Advertising,'*
Electrical Household Appliances, Richard D. Irwin, Inc. (Chicago,
and
Agricultural
Implements"; 111., 1942), p. 452, 453-459*
Also
Part V, "Advertising as a Factor Federal Trade 'Commission,
op.




numbers;

assure

You

•

is

in advahce,

year

seriously the market
feast one thing
it in the
past few days which is
an
outstanding product. 'More-;
slightly encouraging. ; In last
over, it is soundly priced to afford
week's column I pointed out
assurance of maximum sales po¬

the

"Petroleum

in Distribution."

adequate

ever| talking about

.

Perhaps
hurst, J. Frederic,

a

fpr six Inpnths in ad¬
not

vance,

force is well traified and available
in

is better.

4:

Martin

do-.. to

cocked

finished
product.
The
layout and machinery are
the best that money and engineer¬
ing skill can create.
The labor

conditions of consumer

The
as

can

the

plant

relations

Glenn

tert have all

relief,

a
'

add,

may

•

worK'1-' a - ..Week stop, at 20. It's. now about
ahead without go1|ig off half 24^ and has been up to 25%;
I

terials and labor, and of markets
for

the size of percentage expenses

damage they may create.

occur

these

quite

turing plant is scientifically lo¬
cated, permitting a proper balance
between accessibility of raw ma¬

F

Which,

me.

manufac¬

The

advertising 13 is the perennial tar¬
get for criticism on the basis of

or

sharply, the absolute cost of per¬
forming the function may show
before the retail stage, account;
astonishing decreases. In analyz¬
for $8,800,000,000, and interme¬
ing marketing costs, there is need
diate or wholesale distribution; for wider
use of absolute costs and
which

-

soundly financed; its
accounting controls are highly de¬
veloped and its costing systems
represent the most improved tech¬
niques.
It enjoys excellent trade
and public relations.
The man¬
agement is able; alert and ag¬
gressive.
;>
:
.v." V,
The product to be produced has
been carefully selected*
It will
fill a customer need; and the po¬
tential demand is large.
It repre¬
sents the best in design, style and
performance.
It is pre-tested in
the laboratory to determine maxi¬
mum serviceability under rigorous

costs

transportation

charges, most of

conditions.

annual;forecast from

an

if

reaction

a

[The views expressed in

;

coincide

time

Chronicle..

v

99 WALL STREET

NEW YORK 5,

N. Y;

SUGAR
Exports—Imports—Futures

just finished

DIgby 4-2727
❖

f-} :
,

of the

letters

of the loads of rna.rket

■$'>:.

those

LAMBORN & CO.

and if they gq
- v ; Stuff
doesn't make fany sense* ; Or
does it. Must be the influence

•

with

They ate presented as

those of the author only.]

a

#

.

the

was in

rally occured in the next
few days. (If Jhat isn't a lot
of double talkf, brother, then
I never heard any.) If they
don't go dowii they'll go up

I

this

article do not necessarily at any

•

v

•

wasi/trjdng to be¬

Here I

|;ahd::give you
solid advice and
do
I
!■ myself?

retail¬

come

serious

in areas
where there is wide acceptance of
differentiated pricing with specif c
charges for expensive services.

some

real

fective
ers

The

distribution.

of the product operate

The

selling staff is scientifically
selected; salesmen are properly
trained;
and
field
work
is

planned to permit maximum con¬
centration on intelligent selling.
Expense control and marketing
costing leave nothing to be de¬
sired.

The sales quotas are real¬

istic;; and reasonably attainable
despite seasonal and cyclical fluc¬
tuations

in

customer

demand.

where-

Okay,
Instead

okay, fdbW teir the.
of double guessing

mayKIt | should
atlached to G-2
(that's Military /Intelligence,

the

have

been

the

whole

process

(Continued

of

4

87)

■

■

■.

-

Boy, there's a lot of white
ciill

bavpr»*t.

fill and I

tnldl the kind of

Exchange

Curb

York

Exchange

Cotton
-

Chicago
New

/.

Stock

York

New

Commodity
Orleans

Exchange
Exchange,
Inc.

Board
Cotton

of

Trade /

Exchange

'

:

■

':

_

And other: Exchanges

N. Y. Cotton

_

production1 space yet left to

on page

New

influence

The

selling plan and quotas are
so dependable that production can
be planned for long periods; and

York

'

didn'tkhow!)'.. Could
■

1856

Members
New

,

of - the
Johnny Walker V- soda. ; Al¬
ways knew th|it soda didn't
agree with me;
the

Established

H. Hentz & Co.

stock

if you

as

be

.

Exchange Bldg.

"NEW. YORK 4, N. Y.
Chicago,
.

k

Detroit;

Pittsburgh

GENEVA, SWITZERtAND

87

THE COMMERCIAL & FINANCIAL CHRONICLE

..Number 4348

Volume..161

DAYTON

Stevenscn Admitfsd tp

The Nature of ihe

Calendar Of New Security

Flotations

has

CO.

Of

Distribnticn Cost

By Alfred L, Baker

«

Baker

j-.v (Continued from page 86)

,

and

Chicago Stock Exchanges, an¬
nounce that John A. Stevenson, a

and sale flows smoothly with the

minimum of time and oiher losses.

I

such

If

others

many

conditions

ideal

have

that

Specific • "mehtioni

former

and

for

partner

years,

many

there Js

C. J, Grate With

that the marketing costs will be
a minimum.. But obviously all

G. B.

these iceal conditions do not pre-

wh.ch they
enormously

aha the degree in

present

are

•

shows

-

.

other

and

skiil

fection; but the

actuality

partment.

slow improvement in the methds and mechanisms of marketing.

MarketWise

1

Perhaps one final

in

wil-

comm ent

complete-, the.,background of this

'^discussion.

group

objective in
.V't

profit

that the stockholders will

leans

have art

Under

of

production and
biarketing costs.14. /
I.. Lew marketing cost is not al¬
ways an end in itself,, because the
cheapest method of marketing an
will

relative;

are

they

and

and

demand

of

holder

each

In addition,

will be

upon

comple¬
dividend

paid.

Stockholders' meet¬
ing is scheduled for January to
act upon tffls resolution.
In the

be

on

tomers

the

meantime

has

market

ad¬

New York

eral

Society/of Security Analysts

In

process.

there

is

labor
costs

apd
the

subdivision

minute

Holding Company Act."
10th,. Charles A. Higdn«. Preddevt of Hercules Pow¬
der Co.. will be

are likely to
absorb large
perhaps increasing Darts of

be

too

disturbed

T.eld at 56
Proacl Street, New York City, at
12:30 p.m/

if;

they are wisely incurred.
After.
aU, the costs of purely mechanical
functions
of
production
seldom
•afford

wholly

a

basis

sound

duction

tion" is

.•

^

for

offers**® n
with
interesting

oany

post-war

City.

De¬

may

requires mass distribu¬
pleasing euphonism; but
ultimate

Co. upon request.

in

differences

the

Werd

Insftiis

Wire to

two

Bower, Marvin: "Cutting Dis¬
tribution
Costs
Through
Inte-^
.

p.

cago.

t

r

i but i

27.
Nathaniel

tribut'on

•mod'ties" X

on

of

stock

The

will'
of

stockholders

the 'ratio

in

co.

registration statement for 150,common
stock
(par $2).

a

will

offered

be

record

of

-one

19,

of

Union

to

common

Jan.

on

stock

held.

' The

1944.
19441"

that

direct

a

Kneeland &

Co., in Chi-

^

111.

they

private

'■

-

the

with

ment

public
the

^

Si 5

J 950/45

Clark and Clark:, "Princinips

the

Markef-ng."
The Macmillan
Co. (New York, 1942), p. 761.
pf

regard

million

to

new

a

refund

4^s of March

is shortly expected.

present

centers

to

issue

Quebec

bn

a

At

2U%

sub¬

Wm Gordon Partner In
Colpitts, 120 Broad¬
New York City, consulting
announce

has

since 1930.

admitted

to

The

Public

National

Bank

and

Trust Company of New York oL
fers an attractive investment, ac¬

cording to
is

being

a

the
;

by

C.

had

from

the

firm

upon

quest. •' ' /';.


http://fraser.stlouisfed.org/
Federal Reserve Bank of ■■■Hi
St. Louis
tfggggg

re¬

gating

with

issues,

comparable

and

this

factor,

tories, should lead to the main¬
tenance

of

a

steady

market.

mamma

to

firmer

$2,400,000 and $140,000 of funds
with trustees will be used to
the company for funds depos¬
1945, of

Georgia-Carolina Power Co. first
5 % bonds, for; the /redemption
1945, of $3,959,999, South Caro
lina Power Co. first lien and refunding
mortgage gold bonds, for the acquisition

mortgage

July 1,

on

Canadian Securities/
1

Wood, .Gundy, & Co., Inc.,. 14
Wall Street, New York City, have
ssued

containing
year-end valuations of Canadian
securities.
Copies of this inter¬
pamphlet

a

request from Wood, Gundy & Co.
h

,!/(*—■/

.

.T ;

_..

ILL.

Jan."1st the firm
Bennett &/Co.,

to/ Bennett,

was,

There is

corporated.

changetT

Co., In¬
change in

&

Spanier

no

of

lien's

5s

shares

South

stock

personnel of the firm, which main¬
tains offices at 105 South La Salle
Street.

Total

premiums

of

the

an

to

registration

chase

for

shares of
par-.value.' \5-kV;

tributed
Broad

of the New York

members

Exchange

Copies of this circular
upon

may

the

&

at

rants
tion

Works

common

Loom

exchanges.

Copies
had

Preferred and
S.

Dye

common

stock of

is

A-2,

Ill

Broad¬
way, New York City.
Copies of
these circulars may be had from
request.

of

the

as

shall

be

at. the

the

to

to

in

the

A-2.

plastics

Form

&

stock,

without

par

and

sale

of

amount.

■' ■*'

''

'■

■

net; proceeds will be ap¬
corporation's
outstanding
promissory notes dated May 1, 1944, pay¬
banks

to

amount

poration

in

of

funds

With
the

to

amount of
said

assist

The

to

and

may

company's

the

and

and

CO., LTD., INC., has

statement

199,847

rate

$100
like

.

the

on

pre-

selling

and

tobaccos.

..?

Underwriting—Lehman
Brothers
and
Glore,
Forgan &
Co.
head
the, under¬

group.-/;,

writing

of

ers

its

scribe at

...

for

stock

shares of

rate

of

be

corpora¬

its

the

of

common* stock,

stock
of

shares

the

old

4V4%

right

offers,

also"

rights to the
to the holders
4Va%
pre¬

to

exchange, their

stock,

share

for

cumulative

new

preferred
adjustment,;* • Such

cash
not

^

of-'commod-

and

preferred

are

stock,

cumulative

of

company

subscription

for the
plus
a
as

hold¬

to

preferred

shares

to

The

outstanding

issued

the- sub¬

under

scription

and exchange offers will be-pur¬
by underwriters and offered to the
,

./*./,•/:/;•'•,

Proceeds—Net

stock

ferred

be

■

/

proceeds from
in

will,
to

devoted

the

stock.

sale of

the

exchange for old

to

the

redemption

of

old preferred stock
March, 1945, at $104

in

share and accrued dividends
4Vi%:'/'preferred and ■ $107 and
of

the

4V2%

for

will

Proceeds

be

Registration Statement No.
(12-27-44.)

*

■

the

accrued

preferred.

Any

/

/,

2-555V.
.'

.

the

to

added

general funds of the company,
A-2.

old

the

per

for

pre¬

extent necessary,

The

redeemed

•/■

/,■■:'■

Form

//•*

■>''' •/
■ ■'

TUESDAY, JAN.
THENATIONAL

;■■•

'

used

ASSOCIATION

tration

statement

has

$250,000

FI¬

a' regis-

filed

of.

,

-

pre¬

I

South

Address—343

Chicago,

Dearborn

-

Street,

111.

.

Business^—Cooperative association,'.

Underwriting—None.
be

offered

ciation

will

be

its

to

investment

sold

The

securities to

direct by

the

asso¬

stockholder-membersj

purposes.

'

;

.,,

for

/ '/

Offering—Offering price to the public is
$100 per share.
Proceeds—Total
company

develop¬

be

busi¬

for

ferred stock.

in

in

used in

proceeds

received

Form

(12-28-44.)

(This

bv

the sale of the securities will

making loans to members.

Registration Statement No. 2-5558.
S-2.

Form

16:;"//

COOPERATIVE

NANCE

the

"/•

five

;.

wartime

peacetime

the

share

one

for each

held.

holders
of

offering

rights to sub¬
price to be filed bv amendment

199,847
the

preferred

is

stock

common

a

from

Registration Statement No. 2-5553.

(12-23-44.)

for

City.

of

ness.

S-l.

&

The'dividend

cor¬

balance

the

added

conversion

operations

this

production

war

thereof.

will be

general

peacetime

ment

aggregate

statement

financing

proceeds

connection

the

borrowed

was

termination

tion's

to

in

The

•••/

,

stock will be filed by amendment.
Fifth
Avenue, New York;

fervod

the

$1,600,000.

"

Form

■.'

Proceeds—The

to

;./

:

nu¬

by Merrill Lynch, Pierce, Fenner
•

industries

chemical

preferred stock,
subscription
rights, „for

and

the

develop¬
place

will take

cumulative

of

use

Offering—The offering price to the pub¬
lic will be filed by amendment.

plied

the

in

*•.■/•.:'■•'' 'M-'-' /'.//"''•

registration

a

par,

i./'///"''" /"// ■'/'

././/

Beane.

enable

to

expected

PHILIP MORRIS

shares

is to

rate will be filed by
/, ■//. /•./ // ;/
•-/ / ■' *..
East
131st Street,
Cleve¬

products for

headed

funds

and

shares not Issued

principally in the
automotive and aviation industries, etc.:, ? •
Underwritin"—The
underwriting
a roup
is

it is

1.

will be used

proceeds

(12-27-44.)

filed'

a

dividend

Business—Manufacture
merous

net

participate

to

balance

land.

all
thereof

part

such

Registration Statement No. 2-5556.

public.

and

has filed a regis¬
the Securities and

CO.

•

own

only

purposes

or

the return of peace.

upon

be

with

for its

purchased by stockholders,
price at which they are being

which

warrants.

the

corporation

.

preferred

Address—300

shares,

additional

company
ments

purchase

to

the-stockholders.

provide

cumulative

The

in

investment

same

dividends

amendment.

0„

Proceeds—The

chased

by

vice-president.

statement

to

common

not be

offered

A.

received

of

holder
of

the

at

rights

of

the ratio of
share for each share held

a

73 208

shares

from sale

proceeds

will

WEATHERHEAD

-

upon

for

account
of

Exchange Commission for 20,000 shares «f
value.

"share

per

Cleveland.

share,
stock,

the

and

record

1944,

shares

The company has entered into
with the M. A. Hanna Co.

preferred

the

by J. F. Reilly & Co.,

esti¬

THURSDAY, JAN. 11.

situations,

interesting

of

ferred

treasurer

27,

hold¬

to

agreement

common

(12-22-44.)

the

offer

is

Registration Statement No. 2-5552.

Finishing and United Piece

according to circulars just issued

shares

The

warrants

director

able

Situations Of Interest

public

/'/■/"■;/;/

date.'

the

He

attractive

offers

possibilities, according to a memo¬
randum
issued
by
Buckley
Brothers,
1529
Walnut
Street,

U.

any

Dec,

73,208

$29

record.

an

subieet

•///

to

Proceeds—The entire

request.

Knowles

pic¬

by

the

to

100/583rds of
of

stock of

common

business

at

the prospectus are issu¬
exercise of purchase war¬
time prior to their expira¬

stock.

covered

be had

Attractive Possibilities

//,;//'

.•

motion

underwriters.;

upon

tration

Crompton

New

mated at $13,375 for the warrants and $21

Stock

other/exchanges

and

stock

at

Schneider,

New

of

price

,

manufacture-

the

is granting

Offering—Company
Seventh ./ Avenue,

,

Hirsch

by

Street,

pur¬

stock and
without

Underwriting—Samuel J. Briskin, Holly¬
wood, Cal., and A. Schneider, New York,

for

in

Address—119

stock,

■

named

its

of

subscribe

■

Form

7,880

commoii

Business—Production

•'.

,

.

s

$5.
Tona-

par

phenolic

cigarettes and smoking
for

City.

tures.

statement-

CORP. has filed

common:

Addresss—729
York

of

Business—^Manufacturing

/warrants

of

dis¬
&
Co.,
25
York City,

including

$10,107,765.

statement

21.013

circular being

a

public is

COLUMBIA PICTURES
a

stock

Eng. Co.
interesting situation ac¬

required,

the

of

Form

CHEMICALS,

&

registration

a

New ork.

sale

of

ers

(12-22-44.)

able

&

hands

(

capital

(

or

23,023

preferred

Regii»w Statement No. 2-5551.

Offering—The

Aircraft

$6

the

in

amount

cost

of

bonds and preferred stock in

on

bands

are

Interstate Aircraft & Eng.

Carolina

outstanding

public.
the

redemption

for

PLASTICS

filed

has

Carolina

Commonwealth's

and

of

South

$3,411,000
at

$2,855,562,

s-i.

of A. A.

name

Inc.,

retirement
first

Co.

Effective

—

from Commonwealth & Southern Corp. and

.

Now Bennett Spanier

the firm

flfGSGflB

ofr

Commission's

foi* the redemption on Jan. 1,

A

stock

of

used for working
contingencies.

for

Offering—Company

proceeds,
together
bank loans aggre¬

of

public

the

sale

plastics, certain re¬
lated chemicals, and phenol,:
•
.'//■/ Underwriting—None.
r'/'V v /•••'■-"//

reimburse

Year-End Valuations of

con¬

do¬

•

by

net

from

Business—Engaged

.

V

proceeds

will.be

DUREZ

and

deposit

on

ited

ranare,

when

the

to

price

to building and improve¬
machinery' and
equipment,
etc.

wanda,

and the interest
the.. successful

rule

named

Proceeds—The

in

together with a probable early
replenishment of dealers' inven'

this interesting memorandum may

investment

mestic

E.

maturity

be

:/•

Company

named.

(12-23-44.)

close

the

under

';.

:

for 73.208 shares of common stock,
Address—Walck
Road,
North

,

be

plastic

MONDAY, JAN. 15

Charles¬

will'

others

materials,

Registration Statement No. 2-5555.

be

v

utility.
bonds

to

sub-license

dealers.

or

reserve

S-2.

$641,500

attractive for insti¬

trasted

Unterberg & Comnany, 61 Broad¬
way, New York City;
Copies of
,be

appear

tutional

memorandum which

distributed

5-10-year

still

sale

will

with

other national

especially

and

•/'..-

./-,/-;
Street,

to

-

be applied

ments,
Balance

//;,•/■•
Offering—The price to the publid»will be
filed by amendment.
;'//-r-;■ //,':■

-

.

for

rate

of th;s memorandum may be

hieii-grades,

will

has

will

/.-;;/ :•//

bidder.

that William

been

rate

/

Meeting

competitive -bidding

Coverdale &c

from Buckley Brothers on request.

dian

interest

The

1975.

due

fered

in five

Attractive Investment

series

Underwriting—The

Coverdale & Colpitis
Gordon

CO.

exclusive ^license

per share.
Proceeds—Proceeds

"Chron¬

POWER

and

units.

and

in

It has acquired from

an

Offering—Offering

//.

CAROLINA

1944.

is $100

registration statement for $8,000,and
refunding mortgage bonds

a

Day¬

incorporated

was

Henry

underwriters

000; first

ton, S. C.

eral

j

.SOUTH
filed

Business—Public

engineers,

the com-'

in

common

Building,

Canby

Underwriting—None

WEDNESDAY, JAN, 10

Address—141

Philadelphia, Pa., members of the
New York Stock Exchange and

years! As far as the genmarkeUjs concerned, Cana¬

Details

1944.

of

plans to sell the securities registered direct
to
the
public without the assistance of

.

discussion
due

.22,

Form,

registration

a

shares

manufacture,, plastic

INC.,

bond

moment

Dec.

filed

1,868

May,
A.

homes

Corp. and Hornblower &
the
underwriting
group,—

filed by amendment.

way,

to

held.

icle,'/. Dec. 28, 1944.

shares

for

manufacture,

connec¬
the
ex¬

of

has

CORP.

in

Cashly

be

head

Filed

25, ; 1945,

one-half

and

Ohio

for

1936

will

its

at

(12-23-44.)

Business—Genii

Securities

Weeks

Proceeds
working capital.
Filed'
Details
in
"Chronicle,"
"
/ ////'V"

to

added

be

Dec.

Dec. 28,

cording

(Continued from page 85)
Looking towards possible fu¬
ture developments,an announce¬

Distribution.

p.

V

Canadian Securilles

o n.

H.r

Proceedings

PostonConference

,

shares- of

from the firm

"DisCost Analysis by Corns

iSEngle.

((1937.)

s

City/ announce
installed

wire to

-grated "Cost
Reduction."
Pro;c«edmtfs of the Sixteenth Boston
D i

las-filed
000

offers

Ward & Co., -120 Broadway, New

•14

on

"Chronicle,"

:. .'cooker

Interstate

Kneeland Co.. Chicago
York

Conference

;

Appears Attractive.

of 'a

sale

in*
-

-

in
by

facilities

ton, O.

common

common

commenced

of

productive

Address—211

the
net proceeds of the
with other funds of the
used for the establish¬
ment and acquisition of additional plant
and
warehouses,
the
purchase
of
nev
machinery and equipment for the proposed
new
plants,
the
purchase of additional
delivery equipment, : for the improvement
and rehabilitation of
existing plants, etc

Copies of this memorandum
be had from Amott, Baker &

have

j.

pros¬

pects/according to a memorandum
:ssued
by';-Amott. Baker & Co.,
Inc., 150 Broadway, New York

processes.

.=■

Good

Wilcox Comattractive situation

The Peck, Stow &

•product is to an individual.
We
may not. .wisely, confuse the enor¬

(1944.)

,

a

'actually- the

mous

are

Post-War Prospects

phases of the functions required
'to satisfy the needs, wants and
whims..of more than 138,000,000
"Mass

-

CHICAGO,

unremitting disparagement of the
costs
of
the
non-mechanical

j«dividual cu«tomers.

Details

.v

of

that/

sale

Stock.

offered

continuation

program

company,

esting material, may be had upon

speaker.

All/meetings

We need

dollar.16

greatly

Jan.

On

of

these

specialization,

consumer

hot

sev-

free economy where

a

and

and

Commission,, speak on
"Economic^mplications of the

economic' Enforcement of Section 11 of the

the

, 1944.
1944

19,
28,

additional

S-l.

stock/ together

Monday, Jan. 8th, the New

responsibility 15 fori Exchange

throughout

Dec.

.Dec

of

shares

the

in

pany

the

don has been associated with the

York

is joint

by

financing

new

12

will use
the
50,000 shares

company

the

from

GENII

holders

the

to

anticipated

with

pansion

stock

(no pari.
issued and outstanding;-. >

represent

each

/. is

tion

sdmpany.' / Lehman Brothers and Lazard
principal-;; underwriters,
bthers- Will be: fiied by amendment.
Filed

Analysts to Hear ! firm

On

Marketing costs are only about \ will hear Leslie T. Founier,- specne-half of the whole cost prob- j cial assistant to the Securities and
cost reductions

■It

CO.,

membership in the firm. Mr. Gor¬

they are willing to pay.

lem; and the

not

Jo

by amendment.

Details

1944.

being

automobiles

Registration Statement No. 2-5554,

1944.

are

pneumatic

of

passenger

expansion of its Dayton, O., plant
for
the
acquisition and installation

and

the rate of one share of preferred

at

for

INVESTORS

AMERICAN

The shares are

A.

to 36.

vanced from around 31

which

for

-/•.-".SUNDAY, JAN 7

rights .expire Feb. 25.

tion of this, a 20% stock

the basis of work done.
At various levels of purchasing
iability, there are differing ratios
iOf costs; and they are incurred
to meet the type of service cus¬
'judged

stock

scription

theX/plan

held.

costs

must

subscription

the / capitalization.

ip^

shares

The

ment.

share

outstanding stock -will
be given rights to subscribe to
two-thirds of one share at $27 per
share
for- each
share
presently

.

Like other costs, marketing

>•.

,

for -each

presently

necessarily pro¬
duce maximum sales and profits.
not

the discretion of the

v.,/',/-^

opportunity to vote on an

jthan objectiveJs attained by high

article

///•

,

un>

and

of ; me¬

Dayton, O., and Waynesville, N. C., plants.

GINGER ALE, INC., has
filed
a
registration statement for 50,429
shares of cumulative preferred stock
(no
par), Dividend rate will be filed by amende

.

increase

ratios

:

improvement has
market wise,
it is re-

price is all that counts, whether
low

Improvement

tional BankLof Commerce in New

It has been
jwell said that 4he;final con sumer

or

SECL

effective,

i

i

sale

the

of

DRY

CANADA

for

Proceeds—The

proceeds

WEDNESDAY, JAN. 10

to

goods

tubes

Day¬

Avenue,
'"

and

Underwriting—Lehman Brothers.
Offering—Offering price to the public to
be filed

and G. H.

Co.,

&

rubber

statement

twenty

dates
statements will

'.120,000 shares, of common

ported, from-the recent announce.1 ent
of the directors of the Na¬

jstirnulate the system.

*

less accelerated at

Anthony

Filed Dec. 21,

"Chronicle," Dec. 28,

Riverview
••

and

two

trucks.

and

registration

become

course

in

than

less

according

registration

normal

in

filed

were

which

on

whose

grouped

ago,

GENERAL

Nat'l Bank of Commerce

resulted

to maintain and

necessary

days

„

-Considerable

maximum ;• physical- production
fconsisteiit with the ultimate.. net

■.fT'v

'

in New Orleans, La.

basic

'The

>

free economy is the

a

Tucker,

Walker & Co.

INC., has filed a registration statement for

Marke'ing/ Costs and Total Costs

.

'

-r

Issues

statements

de¬

investment

the

D. B. Bonbright & Co.,
Powers Building.
Mr. Grate-will
be connecved with the bond, de¬

only

can

of

of

List

George

e

$103

./ ••'"' /'//•

Leish,

New York Stock Exchange firm of

n.arketing costs.-; The ideal is per¬
'

head

for

company.

be

$1.

par

being sold

are

and- 10,000 shares by

,

chanical

Ripley & Co., Inc., Mellon. Se¬
curities Corp., A. G. Becker <fc Co., Merrill
Lynch. Pierce, Fenner
Beane, Union Se¬
curities
Corp., A. C.
Allyn & Co., Inc.,
E.
H. Rollins & Sons,
Inc., Slade & Mc-

the

narriman

NEW FILINGS

partment of the Union Trust Co.,
has become associated -with the

influence

factors

at

Assoc.ates

o.

shares

50,000

Business—Manufacture

general

tires

of

may

total,

stock,

common

Address-y-2342

ton,

Pro¬

the

,

B.BcnSsrigh!

ROCHESTER, N. Y.—Charles J.

and

and

&' Co.,' Inc.;
share,

Grate, for fifteen years an officer

large'-y a r a tie n. .-.Like other busi¬
ness costs,; great differences, in the
nature of products, demand, mar¬
kets,'* selling * ability, • managerial

iU.'.;

ley

par).

(no
to

added

be

of

the

Part of the pro¬
expended for plant expan¬
sion,
reconversion and changes and for
tools, .machinery
and equipment.
Prin¬
cipal underwriters are Kuhn, Loeb & Co,,
Blyth & Co., Inc., Coggeshall & Hicks,
First Boston Corp./ Glore, Forgan & Co.,
funds

ceeds

Inc., heads the group of underwriters.
13, 1944. Details in "Chronicle,"
Dec; 21; 1944. ' " ' :
>../;//
Stocks offered Jan. 4 by Harriman Rip¬
per

at

will

stock

preferred

ceeds

Harriman Ripley &

working capital.

has filed a registration
shares of $4.50 cumu¬

INC.

SERVEL,
lative

registration statement for

a

company
stockholders.

statement for 60,000

4Va%

Filed Dec.

high probability

a

a

shares

100,000

stock,

oO.,

•

then

filed

has

for

preferred

Any remaining funds will be added to cur¬

existent,

are

BROTHERS

statement

tration

cumulative

rent

has been admitted to the firm,

escaped

regis¬
of
series,
par $100. Of the proceeds $8,398,272
will
be used to redeem in February, 1945, at $31
per share,, all of the outstanding shares of
convertible preferred stock of the company.
BUTLER,

..CHICAGO, .ILL. — Alfred •;Li
& Co., Ill South La Salle
Street, members of the New York

I

JAN. 9

TUESDAY,

OFFERINGS

the

by

'

MANUFACTURING

RUBBER

filed

shares

60,000

list

is

incomplete this

week)

-/

THE COMMERCIAL & FINANCIAL CHRONICLE

83

;

;/

Thursday; January 4> 1945
■

Teletype
NY

Trading Markets

To All

'

New England Public

■;

Of Our Business Friends

'■

.

.

Preferreds

.

Thank you

Telephone
all issues

sincerely for

At the end of 1945,

2-0050

hope

we

favors lo dale.

your

<

:

.

Robert Reis, Common

Majestic Radio

business rclation-

our

Service

,

Howard Stores 1

•,

FOREIGN SECURITIES
HAnover

"

*

»

Firm

1-971

/

-

'

ship

will be

confidence,

greater

r.ARL MARKS & CO- INC.
'

N. Y.
:

;7

due

50 Broad Street

its

to

Actual markets in

AFFILIATE: CARL MARKS & CO. Inc.

having

and

the

met

M. S. Wien & Go.

of

Members N.

securities

40

CHICAGO

--

Teletype *L

Stocks

New

York

Security

Dealers

45

NASSAU

STREET,

NEW

YORK

5

PHILADELPHIA

2-3G00

REctor

IlELL

TELEPHONE

Enterprise G015

77 new

&

:

-

Bonds

Bonds

~..j

••••/■

Distribution

Term.

Stocks

ensuing year:
telephone

HA. 2-8780

1-1397

Lincoln Power Co.

Association

■

elect¬

V.

Northwest Cities Gas

INCORPORATED

Members

y. Security Dealers Ass'n

Exchange PL, JM. Y. 5

Kobbe, Gearhart & Company

ciation, held at the office of the Association at 42 Broadway, New
York City, on Tuesday, Jan. 2, 1945, the following officers were

K

Goodall-Sanford

77

-

Security Dealers Name Unterkrg Pres.

Adolf Gobel

^

-

of another year.

wide range

a

ovi;n-Tin:-roi.\Ti:n

New York 4, N.Y.

•

cooperation

of the vicissitudes

test

At the annual meeting of the New York Security Dealers Asso¬

ed for the

closer

even

SPECIALISTS

m
.

additional

:

FOREIGN SECURITIES

of

one

& Bonds

TELETYPE

Central

1-576

York

Whse.

Warehouse

Corp.

Common.' -.-Vv

Continental

States Tel.

Bonds

Shields* Co. Will

0'Neil, Jasper V.-Ps.
of Herrick, Waddell

AMI Two Partners
Shields

New

&

44 Wall Street,

Co.,

York

City, members of the
York Stock Exchange and

New

other leading

mit

Exchanges, will ad¬

Theodore

L.

Crockett

John Jerome Reilly to
Jan. 11.

on

the

and

partnership

Both have been with

firm

for

Mr.

time,

some

Crockett
vestment
C. E.

H.

tTnterberff

R.

advisory department.

of

in¬

the

Members

11

N.

Y.

Waddell & Co., Inc.,
bankers, 55 Liberty
Street, New York City, announce

Dealers

Security

Ass'n

Broadway, New York 4

Telephone:

Herrick,

Bell

investment

WHitehall

Teletype:

NY

4-1044

1-1721

the election of John J. O'Neil and

George M. Jasper

as

Vice-Presi¬

dents of the company.

is

Sales

New
is

Manager
office

York

Mr. O'Neil

of

NATIONAL SERVICE COS.

firm's
Jasper

the

and

Mr.

PREFERRED

Manager of the office in Spring¬

Mass.,

field,

he

where

has

been

CONVERSE RUBBER CO,

for the last three years.

Allen

Herbert

Amott

as: manager

Henry De Meester & Co.

COMMON

"

Clarence

E.

Unterberg, C. E.
Unterberg & Co., President;
Fred J. Rabe, F. J. Rabe & Co.,
Vice-President;
Herbert
Allen,
Vice-President;

&

Allen

Co.,

Harry R. Amott, Amott, Baker
7;-.

Theodore C. Corwin, T. C. Corwin & Co.„ Treasurer.
The personnel of the

Harry

Philip

R.

Amott;
Gammons

Carret,

Board of
Allen;

Herbert

is:

&

Carret,

Co.;

T.

C.

Corwin; James Currie Jr., Troster,
Currie & Summers; Frank Dunne,
Dunne & Co.; John J. O'Kane Jr.,
John J. O'Kane Jr. & Co.; B. W.

.Pizzini, B. W. Pizzini & Co., Inc.;
Fred J. Rabe; Otto H. Steindecker,
New York Hanseatic Corp.; Percival J. Steindler, P. J. Steindler &

Co., and Clarence E. Unterberg.
The

Board

.

Executive Sec¬

as

all

is

are

nineteenth

the

of

ner

to

be

held in the Grand Ballroom of the

Hotel

Waldorf-Astoria

to

have

this

Thurs¬

on

It is planned

day, Feb. 15, 1945.

the

dinner

annual

biggest and best in the history of
Association, with larger and

the

entertainment

elaborate

more

than heretofore, and good speak¬
ers

to be headed by an outstand¬

ing personality whose

will

name

These

erally

dinners

annual

conceded

standing

to

social

"Street,"

and
a

of

the

out¬

the

of

have

large

offering
for

debentures

eral'Intermediate

of

the

Credit

an

Fed¬

and
''.

been

Dunn, New York, fiscal agent

New
Dec.

sisted

of

$26,715,000

0.90%

con¬

solidated debentures dated Jan. 2,

1945, due Oct. 1, 1945.

The issue

The proceeds,
together with $8,315,000 cash on
hand, was used to retire $35,030,placed at

was

000

par.

debentures

due

Jan.

2,

1945.

As of Jan. 2,1945, the total amount
of

debentures

outstanding

'

was

compared with $5,312,018 a year
:7 ;:7 :V;| v-'

Phila, Nai'i Bank

earlier.

Profits Increase

31,

is

Co.,

120

Broadway,

New

York

City, members of the

York

Stock

ship

James

Exchange,

N. Slee to partner¬

Jan. 11.

on

will

Mr. Slee in the

of

total

assets

on

Teletype

Hubbard 6442

Hanorer 2-7913

BS 328

respec?
We specialize in

and
.1944.

as^

Public Utility Stocks and Bonds

TEXTILE
Securities with

against

Capital and surplus

Dec. 31

undivided profits on

and

Specialists in
New

$4,429,102 against $4,095,419 on

England Unlisted Securities

24 FEDERAL STREET, BOSTON
Established
Tel.

HANcock

Dec.

by

30, 1944, made public today

E

shows

v a n
an

Randolph,

President,

increase of $2,277,017 in

undivided profits for the year,
which compares with an increase
of $1,812,018 reported a year ago.
Net

earnings

from

current

against $49,681,252

During, the

the

year

In

his

stated

report,

that

investment
substantial
ures

the

Randolph

Mr.

value

excess

at which

they

are

the

adding profits

on

,

After

securities

other income and after

and

deducting

on

Bright Possibilities
The current situation in Central
Iron and Steel also appeal's

inter¬
bulletin lust

account, and miscellaneous

issued by Lerner & Co., 10 Post
Office Square,
Boston, Mass.

amounted

to

$5,777,017,

,/•; '"*"7:-

;-';7

7

r-

Page

•
•

One Statistician

80

Calendar

87

New

Security Flotations

Municipal News and

We seek the services of two additional able traders to

Mutual
Our

our

of

Canadian Securities

One Contact Man
help develop

70

Broker-Dealer Personnel Items.;....

out-of-town trading.

Funds

Reporter

85

..........

Notes

,64

"',T,.».7' 84

on

Governments

65

Our,Reporter's Report.......

esting, according to

dends

v..'

handle and

carried

the books of the bank.

taxes, the amount applied to bond

charges, net income before divi¬

Two' Traders

fig¬

operations amounted to $5,920,247,

against $5,870,116 in 1943.

|

a

over

22

Bank and Insurance Stocks....

of

shows

market

securities

•

■

bank

.

Tele. BOston

INDEX

at the* end of

increased its surplus account 33%
from $21,000,000 to $28,000,000.

'

10

1922

Sept. 30.

past was a partner in the firm.

.

1943.

In

8715

Capital, surplus and undivided
profits amounted to $51,958,269, as

The report of The Philadelphia
National Bank for the year ended

New Eng. Market

Frederick C. Adams & Co.

unchanged at $20,000,000 each,

are

SECURITIES
a

purchased are now

$116,959,509

$100,79-8,734.

'

Investment Trust Issues

while

$536,742,422,

x

Industrial Issues

securities, $535,055,-

against

all

Insurance and Bank Stocks

$128,580,742, against $137,-

856,901; holdings of United States

are

New York

of

30,

Sept.

MASS.

9,

Boston

hand and due from banks

on

now

deposits

BOSTON

of

$759,212,131

$817,396,301
Cash

as

reported

compared,

with

tively,

Incorporated,

total

and

$816,596,609,

shown

&

1944,

loans and bills

Gillen & Co. To Admit
Gillen

City,

Government

;-

-

York

$756,549,777

436

admit

.

J. P. Morgan & Co.

for the banks. The financing con¬

R.

RALPH F. CARR & CO.

Banks

New

ever-

J. P. Morgan Co. Reports
Bank Condition

concluded Dec. 21 by Charles

was

gen¬

events

increasing number.

by

are

be

always

attended

successful

issue

$271,510,000.

be announced later.

member added to the

Alfred E.

din¬

anniversary

Association,

A

that

made

plans and arrange¬
well
under way for

necessary

ments

FIG Banks Place Debs.

.

Announcement

Mr. Pizzini;

new

was

retary.-

the

& Co., Inc., Secretary;

Governors

Loyd continues

Copies of this
asking.

may

a

be had for the

This

out-of-town department

will operate indepen¬

dently, but in cooperation with our regular trading

department.

one

statistician-corre¬

Utility Securities.......

,Railroad Securities
Real

7

also seek the services of

We

Public

Estate

spondent for this

same

department.

cooperate with dealers by

'

62

63

Securities

64

Securities Salesman's Corner
Tomorrow's

He will

75

Says

62

correspondence;

regular dealer letter; and service the trad¬
ing department.
prepare a

Unlisted

Eastern States M

Public Utility, Industrial

PressureSube, Inc.

Real Estate '

III. Power Div. Arrears
i). S. Radiator, Pfd.

;

Lumber &, Timber
Stocks & Bonds

Offerings Wanted
good dealer contact man can contribute to
rounding out of this department and we Avill
pleased to hear from any qualified men.

A

Write

or

telephone to Mr, Warner or

Bought—Sold—Quoted

W. T. BONN 8t CO.
120

Broadway

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-886




REMER, MITCHELL & REITZEL
Inc.

tyK ^ming

JL Arthur Warner & Co.

208 So. La Salle, Chicago

120
*

Bell

Teletype—-CG

989

EMPIRE STEEL
Common

(formerly Empire Sheet & Tin Plate)

for appointment

Telephone RANdolph 3736
v

the
be

broadway. new york 5
Telephone COrtlandt 7-9400

Hill, Thompson & Co., Inc.
Markets

120

62

Markets—WaLter Whyte

and

Situations

tor Dealers

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2860

-