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JAN 7
Final
ESTABLISHED OVER 100 YEARS
Edition
In
1944
2 Sections-Section
1
\&L and
ommeicia
Reg.
Volume
:
•
159
The Challenge
■
,
New
Number 4244
Alfred P. Sloan, Jr. Sees Control
Period
U.
S.
Pat.
Office
York, N. Y., Thursday, January 6, 1944
American Policies Of
:
of Prices During Post¬
With Expand¬
ing Job Opportunities.
■
Condemns
Double
Elimination
Of
Taxation
Capital
On
Corporate
Term Gains
Long
Enterprise
Tax
And
And Urges
Confiscating
Levies On Individual Incomes—Wants NO WORLD WPA At Expense
Of American Tax Payer.
Keeping Up
Purchasing Power And Spreading It Over Time.
American business
ac¬
challenge of a post-war "opportunity for accomplishment
unparalleled both in magnitude and scope in the .history of American
enterprise" was expressed by Alfred P. Sloan, Chairman of the
Board of the General Motors Corp. In an
address last month before
the annual dinner in New York City of the National Association
cept the
that
tial Discharge Payments To Servicemen And Dismissal Wages to War
Following
the
take
of
form
all-out
an
effort all
along
whole
the
duction
p r o
long before the war ends. The war and post-war
present time, at ah unknown number of months or years from the
economies overlap each other for a considerable period of time on
both sides of the date marking the end of hostilities. Even at the
economy emerges
By A. M. METZ and EDW. A. KOLE*
Mr.
front,
that
if
met
."it
The customs of
is
it
which have the effect of unwritten law.
reestablish, in
fundamen¬
a
tal
free
competi¬
tive
P. Sloan, Jr.
American
economy
as
pattern of the
for the long
Once
new
"master
plan" including the cost
conversion, the advancement of
present equipment to the latest
of
technology and
(Continued on page 65)
a
stituted
a
custom.
establish.
business
a
are
"Chronicle" pertaining to the legal
aspects of "market price" and "mark-up" practices.
(Continued
Delaware Power
'
Bay War Bonds
delivered,
-
Geneva
4, N.Y.
25 Broad St.
HAnover
"
Established
i
Rep.
State
INVESTMENT
64 Wall
CHICAGO 3, ILL.
We
succeed.
pmil Schram
battles and that
together."
termi¬
nated,
plants
being
closed, surplus
materials are
being
sold,
sol¬
are
ly
curtailed
being
disch arged,
and previous¬
Harold
civilian
Somers
M.
are
ing
the
market.
still
are
the
was
of
the
addressed
first time
Stock
the
Troy
8770
Teletype CG 1219
*A paper read by Professor Harold M.
of the School of Business
Ad¬
Pittsburgh
Buffalo
Williamsport
7/
Syracuse
Dallas
Presi¬
members
the
of
Curb
Exchange, although in 1042
Mr. Schram paid a similar friend¬
ly visit.
The "Chronicle" is particularly
impressed
with
the
sentiments
expressed by Mr, Schram as it is
(Continued on page 81)
In This Issue
PENNSYLVANIA SECURITIES
section containing information and
comment
pertinent to
dealer
tivities in that State starts
For index
see
page
on
ac¬
p,
62
88.
ministration, University of Buffalo, at a
joint session of the American Historical
Association
Association,
at
Columbia
and
the
Economic
History
Wednesday, Dec. 30, 1943,
University, New York.
Bond
on
page
70)
the
chase
Brokerage
bank
OF THE CITY OF NEW YORK
Service
Broaden your customer
service with Chase
FUND
(;0
)
HUGH W/LONG and-GOMPANY
A-INC0RP0RATeo
PHILADELPHIA
Albany
a
Exchange had
and Dealers
correspondent
1927
SECURITIES
will work
items
reappear¬
The magni¬
relatively small
significance as portents
of the future can hardly be ex¬
aggerated.
Post-war
economic
on
tudes
It
dent
we
for Banks, Brokers
BOND)
Street, New York 5
BOSTON
135 So. LaSalle St.
2-0600
Teletype NY 1-210
being-
R. H. Johnson & Co.
Members New York Stock Exchange
London
not be able to
your
PROSPECTUS|ON REQUEST J
Hirsch, Lilienthal & Co.
NEW YORK
MANHATTAN
VICTORY
Exchanges
are
Invest in
Light
Common
other
suc-
are
country.
Contracts
(Continued
88)
doesn't
ceed,the Stock
Exchange will
national
!
and
on page
Exchange
battles
n
Somers
*Editor's Note—Messrs. A. M. Metz and Edw, A. Kole are members
of the New York Bar and are the authors of numerous articles
said:
"If the Curb
to
i
but their
re-
Schram
our
usage.
;
x-
eh-anger—Mr.~
know that
well known at
something you deliberately set out to
Topsy, it just grows. If duly constituted
the
E
justment
this
disabled
never
of
ident
Curb
you
are
which have appeared in the
When
of
erous
C.
Fred
Moffatt, Pres¬
want
;;
implicit in custom and
:
Like
m
u
diers
are
his
signs of read¬
is
Custom is
of
&
n
.
engaged in that particular industry, since their
dependent upon that acquiescent knowledge.
particular usage finds general disfavor and a sub¬
practice is engaged in, we may be seeing the birth of
existence
term
standards
are
appearance
those estab¬
long consent,
t
the
witnessing the
are
on
of
we
least to those
the
position ahead."
lie ex
plained that the General Motors'
and consent
Of course, the customs of
enter¬
prise
Alfred
Both age
way,
and
a business or
industry
practices, resting for their authority
lished
will
d
e n
said
Sloan
to
New Year.
by
University of Buffalo
It is becoming generally accepted that the war economy persists
for some time after peace comes; it is equally true that the post-war
Attempting To
Establish Custom And Usage
In Securities Business By Fiat
challenge must
Exchange
introduction
..".'V "■«
-<j>
the
of
on
the
of
prosper¬
Workers.
floor
happy
and
^Exchange,
the
Curb
ous
SEC And NASD
accept¬
ance
York
Sees Rapid Demobilization Of Armed Forces And Need For Substan¬
war,
Emphasizing
New
Stock
visited
mem¬
turers.
-
York
31
Dec.
a
of Manufac-<«>
,
New
Schram, President of the
bers
-
leadership is willing to
Emil
wish its
By HAROLD M. SOMERS
■;
■-
And Warns Provision Must Be Made For
-
belief that
The
Same Boat"
Of
Advancement In Our Standard Of Living
Copy
a
"All In The
Shortages A Real Problem—Asserts
Utilization of Raw Materials, Manpower and Plants Can Professor Somers Traces Course Of Business In Years
Create High Level Of Production And Insure A Sound Immediately Following Civil War And First World War
war
60 Cents
Price
15 EXCHANGE PL.
JERSEY CITY
634 SO. SPRING ST. I
LOS ANGELES
Hardy & Co.
Members New York Stock
facilities
Exchange
Members
Exchange
New
York Curb
30 Broad St.
Tel. DIgby 4-7800
New York 4
' Tele. NY
1-733
Member Federal Deposit
Insurance
Corporation
I
Actual Trading
Markets, always
BROKERS and DEALERS
Purolator
thru wide dealer contacts
New
Products, Inc.
Public Service Co.
in
Over -The * Counter
England
Federal Machine and
ALL ISSUES
BONDS
Welder Co.
Securities'
Analysis upon Request
'
Bull, holden & c°
MEMBERS
Members
telephone-rector 2-6300
N.
Y.
Security Dealers
45 Nassau Street
Tel. REctor 2-3600
Ass'n
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
•
HART SMITH & CO.
REYNOLDS &CO.
INCORPORATED
NEW YORK STOCK EXCHANGE
14. Wall st.. new York 5. N.Y.
Bought—Sold—Quoted
Kobbe', Gearhart & Co.
hfembers New York Stock Exchange
120
Broadway, New York 5,N. IT.
Telephone:
Bell
REctor 2-7400
Teletype NY 1-635
Members
New
York Security Dealers Assn.
52 WILLIAM ST., N. Y. 5
HAnover 2-0980
Bell Teletype NY 1-395
New York
Montreal
Toronto
IRA HAUPT & CO.
Members of
Principal Exchanges
111 Broadway, N. Y. 6
REctor 2-3100
Teletype NY M920
\
FINANClAL,CHRQlilCLE
THE COMMERCIAL &
58
•.Trading Market* in:
Common
-,.i|
CANADIAN UTILITIES
Republic Natural Gas
York
New
Dealers Ass'n
Security
115 BROADWAY
BELL TELETYPE
Telephone
Com. & Pfd.
II
Broadway, N. Y. 5
,
r ''
Geri.
ber of Commerce." *
III)
■/7;;
"when
,v
-
the
of
the
with Ger¬
war
is
won,
demands
MacMillen Corf
Common
Taggart Corporation
is d
Preferred
f
e
for
.
cease
Vanderhoef & Robinson
t e d
almost
will
and then
shall
we
our
Gen.
New York 5
Limestone
Bros.,
32
Broadway,
City, members of the
New. York Security Dealers Asso¬
\\
of
L. P. Ayres
take
sec oh
d
Advisory
and
artificial atmosphere,
and inaugurated the Strauss Bul¬
and during the pasta; two years
letin, "Geared to the News," which
that
has
been
largely true... of;
is' distributed to dealers through¬
almost ail kinds of business," Gen.
out the country. 7 He has repre¬
Ayres declared that before, long
"we
are
return
to
than
activities
time
in the
fighting forces."
the question
As
the men
are
-
to
of
" r
man¬
sented the firm
admission .to
the
long step." :
follow
con¬
so
Broadway
Bell System
7i'v'7,77;7'>.7;?77 U
European Theatre
Fred
Central States Elec. (Va.)
*5%, & 5 Yz % Debentures 7:77;V
Common & Preferreds
of the
"Commercial
Chronicle,"- has
V-Mail
attractive
an
New York A. C.
,
f
and
Fi¬
received
Christmas
"Dealt
.
Teletype NY
lems
Pfd.
won.
-
major
Vertientes
Inc.
be
settled
that
Bell
ment
1127
&
warned
problems
will
"acute"
Hanover 2-4850
Teletypes—NY 1-1126
in
lions
in
Preferreds..
.
the
&
&
7%
PARK, Inc.
Bricker's
Mr.
•
(Continued
.
86)
on page
TRADING MARKETS
.
7
WALL ST.
(
Mid-Continent
American
FASHION PARK, Inc.
Export
York Stock
Central
Airlines
W.
Clarke
7
,
Department in the European the¬
ater.
Major Clarke was formerly
head of ; John W. Clarke & Co.,
Chicago.
«
!
He would be glad to hear from
American Cyanamid, Pfd.
iugar Associates, Com.
Lawrence Portland Cement
his present address is: Major John
W.
Clarke, 0-519659
Company
Minneapolis & St. Louis Ry.
"D," 2675th Reg't. A. C. C., A. P. O.
394, Postmaster, New York
City. yy7 777
:v
No.:
7
Ohio Match
DAYTON,
OHIO—
George W.
Peffer and Mrs. Elizabeth Brewer
are.;
officers
of
Feight-Yager
&
Frederic H. Hatch&IC6.
7
63
Gas
&
Electric Building.
Fred C. Yager is president of the
firm. .7: '777;',7>'::
7:"77:77
Co.,
,
.
Scranton Spring
Pfd.
Brook
:
Incorporated
Wall Street
New York 5, N.
Bell Teletype NY 1-897
RAILWAYS CO.
Estimated net earnings
for 1943-after taxes
Present cash and
Water Service
Bonds
.
7-
;
Preferred 7.; ''
■
■/■Vv-'
74
Trinity Place, N. Y. 6
Members New York Stock Exchange'
St., New York 4, N. Y.
NY 1-210
HA 2-2400
Teletj^e NY 1-376-377
Private
Wires
Detroit
-
BERWALD & CO.
Y. Security Dealers Ass'n
to
;
Buffalo.-' Cleveland
Pittsburgh
-
St.
Louis
'
30 Pine Street, New
York
Telephone DIgby 4-7900
BelV System
Teletype NY
1-1790
Y.
•PITTSBURGH
.
.
equivalent
Selling
late
N.
5;^:
Penn. Bankshares & Sec. Pfd.
Feight-Yager Officers
7
7
:
.y
Simons, Unburn & Co.
Tele.
J.
Y.7
WHitehall 3-7253
Wires to Philadelphia it Los Angeles
Special, Letter
Members
2-0606
Major
7"-y
Bought—Sold—Quoted
HAnover
7
Chicago & Southern Airlines
i
25 Broad
7 7;
Direct
•
V.
'
Exchange
63 Wall Street, New York 5, N.
;
,7
Airlines
5
BUCKLEY BROTHERS
Preferred
Airlines
>
YORK
^7t'
Members New
•
Preferred
I
NEW
Teletype NY 1-1140 ; ; HAnover 2-9470
5s, 1931
New York Water Service
i
Inland Airlines ,--i
'.'"...i
Penn.
G.A.Saxton&Co.,Inc.
170 PINE ST.. N. ¥. 5 WHitehall 4-4970 I
Teletype NY 1-609
indus-
Common
Preferreds
Preferreds
war
FASHION PARK, Inc.
Virginia Public Service
6%
of
text
National Airlines I
Preferred
7%
and in
Deb. 5s, 1963
Northern States Pwr.
6%
full
address follows:
FASHION
j ' 7
Mississippi Pwr. & Lt.
$6
John W. Bricker.
The
Exchange
Bonds and C. D.'s
extent
production
*
Jersey Central Pwr, & Lt.
fullest
the
to
kept even at a
higher level than that achieved
in the pre-war period."
when
armed forces
Ah
and
be
the many mil¬
V
utilized
be
production
and
employ¬
Y. Security Dealers Assn.
St., N. Y. S
1944
of
anAXjOmDOYlCJ
York Curb
Members New York Curb Exchange
64
his friends in the bond business—
announced
to
1944, the Gov¬
Camaguev Sugar
ernor
N.
war
;'
Bricker, who has formally
his candidacy for, the
Republican
Presidential
nomination, further stated that,
if high employment is to be main¬
tained and prosperity preserved,
the "great industrial plant must
issues
the
others".
Mr.
ple expect the
Alegre Sugar
Time
37 Wall
extent to employ
that most peo¬
of
Members
-
:
Pointing out
Peoples Light & Power, Pfd.
New
on
Seaboard Air line
1—
pursuits.
7—^
civilian
to
industry cannot do the job^alone
but that "everyone engaged in the.
production, transportation or sell¬
ing of goods must utilize his
money and ability to the fullest
is
war
return
He asserted that Government and
when
the
Mokan A
tries
' be
to
faced
Amer. Car Fdy. Motors,
2s, 1955
Bought—Sold—Quoted
®
in
solving
the
great
prob¬
1-1843
in
Frank C.Masteison & Co.
from
greeting
"declaration of America's faith" to guide this
nine-point
a
nation
Telephone: WHitehall 3-1223
"T
1956
our
posed
;7,7'77.'7
Amer. - La France - Foamite
Gray, Chicago representa¬
fellow-man, in God and in our country." <: '-7
In a radio address over the Blue Network, Gov.- Bricker. pro¬
in
WHitehall 4-8120
Teletype NY 1-1919 %
5%s,
tive
will
65
"
nancial
"there
'77
Maj< John W. Clarke in
jor
will probably
this
i Members New York Stock Exchange
Members New York Curb
Exchange
'7
"Financial Chronicle" of De¬
Gen. Ayres said thai the
stringency of the labor supply
many
partnership in Strauss
.■
'u:
reorgan¬
Mr. Ginberg's
previously reported in
was
cember 30th.
power,
continue until Ger¬
is defeated and that after
on many
ization committees.
Bros;
Dumont Lab.
.
Than Pre-War Production Vital
Street, New York 5
Punta
—
England P. S. 7% PI. Pfd.
77
Says Full Use Of Nation's Industrial Plant And Higher
6s, 1952
H. G. BRUNS & CO.
V/j.
branch offices
.
Statistical
the
New
Declaring that the events qf 1944 may well determine the kind
of life people will live for centuries to come," Governor John W.
Bricker of Ohio on Jan. 1 called for "a great new faith in ourselves,
Bell
to our
York
1J
lide
Gov. Bricker Says
Individual's Place In Society
20 Pine
1-1557
New England P. S. 6% PI. Pfd.
Strauss
v:
New
an
■
Telephone GOrtlandt 7-4070
<•
System Teletype NY 1-1548
Bell
Income
NY
Orleans, La. - Birmingham, Ala.
Direct wires
American Util. Serv. Pfd.
Major John W.
f
7 •
y-'M:: 1" ■
Pointing out siderable i a decrease in- the de¬ Clarke,' now serving with the
for
munitions
and
ships American Military : Government
that "for more than three years mand
(Continued on page 75) v.
American industry has been liv-
York Curb Exchange
31 Nassau Street
New
~
Exchange
St., New York 4, N. Y.
HAnover 2-0700
Ginberg As Partner
Research Department of the firm
in
ing
munitions
for
United Cigar Whelan
e a
demands
the
New
~
,
going to make a partial
peace-time ^^ompeti^
In
munitions tion."
urging thata.ipQ§t-war
will be sharp¬ planning " become post-war pre¬
ly curtailed," paredness, he ; warned that "mil¬
adding that lions of war workers are a good
"when
Japan deal nearer to returning to peace¬
the, Gov¬
ernment
Preferred.
.
Ayres^
asserted that
Teletype N. Y. 1-1227
Members
'"'77,
PFD..
Strauss Bros.
v
many
r
25 Broad
2-7815
ciation," with offices in New York
The most important prospect for 1944 will result from the defeat and
Chicago, announce that' Frank
of Germany when business takes "one long step back toward,, and
Ginberg
will be. admitted as a
partly into, the realm of economic reality," Brig.-Gen. Leonard* P.
general partner; in the firm as of
Ayres, Vice-President of the Cleveland Trust Co., predicted last Jan.
1, 1944.
For the past eight
month in-his annual business forecast before the Cleveland Cham-,
years Mr. Ginberg has been head
Baltimore Stock Exchange
WOrth 2-4230
-
Tel. REctor
^
V
York, New Haven & Hartford, Pfd.
120
-7
Into
Realm Of Economic Reality Following Germany's Defeat
—Says 1944 Will Also Be Boom Year For Business V
Kearney & Trecker
Bell
1-672
;
-
YORK
120 BROADWAY, NEW
Leonard P, Ayres Sees Business Taking Long Step
General Steel Castings
Members
'New York Curb Exchange
>
Prospects For Business In 1344
:
Du Mont Laboratories
New
; 77'7 ' Members
777; "•'7
7, 7 f .New York Stock Exchange
'' V:
Exchanges
Teletype NY
BArclay 7-0100
&
Members New York Stock
NEW YORK 6, N. Y.
~
COM.
;
■v7
NY 1-423
Axton-Fisher Tob., B
Elk Horn Coal,
r
■'
McDonnell &fo Steiner, Rouse & Co.
Members N. Y. Stock Exchange and Other Principal
PI., N.Y. 5 HA 2-2772
Ralston Steel Car
'"7,:
Walworth Pfd.
v
GoodbodY & Co.
Established 1920
Birmingham Elec. 7%
-
Warrqn Bros. Class "B" & "C"
7"">:-::7
CANADIAN MINES:
KING & KING
Birmingham Elec. 69<
Remington Arms
CANADIAN BANKS
:f
Cyanamid Pfd.
Botany Pfd. & Common
Rohr Aircraft Corp.
40 Exchange
American
.
CANADIAN INDUSTRIALS
'
United Gaslmprov.
Members
U.
We
Maintain Active Markets
Long Bell Lumber
.
.
.
.;
under
available
on
$4,500,000
13,000,000
.
50%
interesting
developments.
T. J. FEIBLEMAN & CO.
Members
New
Orleans
41 Broad Street
BOwling Green 9-4433
Stock
Exchange
New York 4
Tele. NY 1-493;
Volume
Number 4244
159
THE COMMERCIAL & FINANCIAL
CHRONICLE
59
The
COMMERCIAL and
FINANCIAL
CHRONICLE
Reg,
'
U.
William
S.
B.
Patent
Dana
Office
Seiberling Rubber
Street, New York 8
BEekman
Due
Ralston Steel Car
Seibert,
Editor and Publisher
,
i
"
William
William
Dana
D.
Seibert,
Riggs,
Chicago Rwy. Equip.
President
Business
Manager
Thursday, January 6, 1944
'
v
Due
Bought
l':f
'
Published twice
■■
;
and
news
advertising
and every
135
S.
•
'
*
,
Reentered
by
as
La
32
Salle
New
York
Security Dealers
Y.,
William
„
B,
Dana
the
Act. of
PRUDENCE
-
BONDS
CORPORATION
Canada,
|
Publications
;•■«?!
NOTE—On account of the fluctuations
in the rate of exchange, remittances for
foreign subscriptions and advertisements
made
New York
in
«of
ALL ISSUES
;
.
.L....>• $35yr.
Bought—Sold—Quoted
Nlewburger, Loeb & Co
Members
40 Walt
New
York
Stdck
also elaborated
Exchange
native
St., N. Y. 5
Bell
WHitehall 4-6330
Teletype
NY
for
post-war
this
icle"
has
ments,
received
of which
some
commodated
and
various
in
this month and the ''Chronicle"
hopes that the Governors
good sense to rescind the illegally
adopted 5% mark-up rule if they have not already been in¬
will at that time have the
by the SEC.
time,
sents
cal
—
a
adoption
thereto
*
of
*
any
*"
representation of its members in the
rule of the association or amendment
If this does not make the intent of
Congress
only has to read the proceedings of the hearings
held by the Senate and House of Representatives Committees
on the
Maloney Bill to have all doubts in this respect dis¬
pelled.
Vi
clear
one
The Honorable
.
George C. Mathews, who
was
Chairman
ings. Representative Boren asked Mr. Katz whether under
the bill the individual members "will have their
rights prop¬
erly protected in the Association,^ Without any hesitation
Mr. Katz said "yes" and then
proceeded to read that part of
his
have quoted above in bold face to
prove
point.
Additional
.
hearing
it
we
was
arise
ing
as
was
not
testimony by Mr. Katz at this stage of the
intended to convince Representative Boren that
true
that
"certain economic
advantages might
between individuals and the
corporate
our
entity (mean¬
Maloney Association)." Is this not conclusive evidence
of the fact that
Congress did not mean to countenance the
adoption of any 5% mark-up rule that would work to the
If not, it
is^only necessary to
Congressional Committees on the
Maloney Bill to make this clear. Furthermore, such
reading
would also make it obvious that
Congress definitely intended
to actually prohibit
any Maloney association from
imposing
schedule of prices
fide attempt to prevent,
any
\
commissions whether in
or under the pretext of
or
(Continued
Botany Worsted
Wickwire Spencer
gov-
ernment
First
Rep. Chas. S. Dewey
in
the
World
War.
I
think
a
that
Ways and Means
Foreign
these
stabilization Further
subjects, would do
|Continued
J.F.Reilly&Co.
great
ihany members of the administra¬
tion, who are giving thought to
Committee
well
Members
New
Ill
have found that
produce
more
weapons
and
of
some
munitions
armed forces c3n
won
we can
types
of
than' the
This leads
use.
to cutbacks in production sched¬
ules,, which release materials and
labor
first
products,
to
and
make
in
other
due
war
course
to
civilian-production, which
now
to
only
become
a
trickle,
seems
likely
good-sized stream.
General Eisenhower has expressed
himself
a
without
qualification
as
believing that the defeat of Ger¬
many
will
come
during
When that happens contract
cellations will rise to
an
a
bona
preventing,
on page
82)
/
System
Teletype. NY 1-2480
TRADING MARKETS
Stromberg-Carlson
and mak¬
to peace¬
defeat of Japan.
Unless policies
have been established and
organi¬
zations enlarged to handle
Gisholt Machine Co.
Bartgis Brothers
Federal Screw Works
170 Broadway
COrtlandt 7-6190
Bell. System
Teletype NY 1-84
con-n
tract settlements
promptly, and to
deal with the related
problems of
disposal of inventories,- machines
plant, the transition to peace¬
and
time
SUGAR
manufacturing will be slow
and difficult.
Much of the indus¬
organization will- be tied in
knots, with working capital frozen
trial
"Before the end of 1944 the re¬
lease of materials and plant facili¬
ties for
is
Broadway, New York, N. Y.
REmor 2-5288
m
war
reconversion
we
Security Dealers Assn.
on page 80)
Devoting every effort and resource to
winning the
ing all possible preparation to facilitate the
is that
York
Bell
to
Greatest Possible War Effort And
Preparations
1944.
in
war
space
inventories
encumbered
and
Govern¬
•
"Other problems which call for
policy-making decisions are also
,
pressing.
More materials, espe¬
cially metals,- are available and
could
be
used
for
civilian goods
to the
can¬
enormous
SECURITIES
working
with
ment property.
extent that
labor, plant
pacity and component parts
(Continued on page 83)
DUNNE & CO.
Members New York
Security Dealers Assn.
25
Broad St., New York
4, N. Y.
Tel. WHitehall 3-0272
ca¬
are
WE MAKE BIDS
ON BONDS WITH
Coca-Cola
Bottling Co. of ff. Y.
/
a
detriment"of the small fellow?
read the reports of the
Vertientes-Camaguey
of
the period fol-
Member House of
Representatives
turn out piore civilian goods.
of the SEC at the time, and
Milton'Katz, who was then at¬
tached to the legal staff of the SEC, testified at those hear¬
the bill which
Punta Alegre
experien¬
lowing
is still far from
fair
Teletype NY 1-1203
future
our
of
Broadway
HAnover 2-8970
not
rule, the Maloney Act, which spawned the NASD, makes it time work are the two great tasks facing the United States at the
beginning of the new year, according to the
January "Letter " pub¬
obligatory upon the Board to do so and mandatory upon the lished
by the National City Bank of New York.
Commission to compel such action. We say this because the
Regarding general business conditions, the bank's review
further
Act states, as mentioned in a previous article, that an asso¬ states: :
>.v,y:
;
The reason why reconversion
ciation shall not be registered as a
volume, even though war
Maloney association unless
prod,_^
it appears to the Commission that "the rules of the associa¬ problems have become pressing tion must continue large until* t'he
while the war
a
39
New York
6, N. Y.
-
Aside from the utter lack of wisdom inherent in such
assure
INC.
practi¬
points
the
ces
QUOTED
Information
Members New York
Security Dealers Assn.,
activities,- but
ac¬
columns
Statistical
-
i. GOLDWATER & CO
only in regard
to
SOLD
some
view
By HON. CHARLES S. DEWEY
Exchange
..
to", the
very
given below. Others will
be given in subsequent issues.
V
Complete
-
pre¬
are
and of the House
BOUGHT
I
it
public
com¬
be
can
today's
I have read "Post-War
"/A meeting of the Board of Governors of the NASD is to
held at Hot Springs, W. Va., on the 17th ,and 18th of
tion
CERTIFICATES
at
think
for
Street, New York
Com¬
ing-just
his-own alter¬
proposals
state¬
ments.
and currency stabiliza¬
tion in the war-stricken
countries.
In connection with this
further
paper on the subject, the "Chron¬
^.v;.;' J
so
on
constructive
somewhat
TITLE COMPANY
son's
financial
1-2033
Reject Contention Advanced In Some
Quarters That Continued Opposition Is Futile And Are
Ready To Participate In Any Organized Effort To Kill
structed to do
Wall
of Dr.. Ander-
recently published, Dr. Anderson
strongbox! How¬
may recoup
our bid!
Telephone: WHitehall 4-6551
^
r~ s
proposals
in the Chronicle issues of
May 20
May 27, 1943. In the article
Dealers Flatly
be
the
and
funds.
.V'
American proposals
originally made
for
stabilization of
foreign ex¬
change had appeared in two parts
NASD 5% Role Contrary To Will
Of Congress And Must Go!
Measure.
and
ber, 1943. Dr. Anderson's analysis
i;'
Monthly Earnings Record—Mth.. .$20 yr.
State & Municipal Compendium—
Semi-Annual
be
99
Pennypackep 0300
article
an
your
you
Obsolete Securities
Dept.
Philadelphia Phone
foreign exchange in light of the revised
plan issued by the Treasury
in July, 1943, and the
plan for an<S>
international
investment
bank
Considered", with the deep in¬
which was
promulgated in Octo¬ terest that I
always accord to all
PRUDENCE COMPANY
Bank and Quotation Record—-Mth. $20 yr.
must
STREET
Foreign Exchange
the British
March
$27.50 per year; South and
America, Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except
Spain),Asia,'
Australia and Africa, $31.00 per yean
;
ever,
by getting
bearing the above caption and published in the
"Chronicle" of Dec.
16, Dr. Benjamin
Anderson, Professor of Eco¬
nomics at the
University of California, Los Angeles, and
formerly
Economist of the Chase National
Bank of New York
City, renewed
the discussion of
Company
Central
"
'
Considered
In
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
.
WALNUT
Harrison 2075
Teletype CG 129
second-class matter Feb¬
Other
hcttcm of
Quoted
—
CHICAGO 4
DIgby 4-8640
Teletype NY 1-832, 834
J 3, 1879.
Of
Sold
to
PHILADELPHIA Z
Post-War
Ass'n
,,
under
1528
Board of Trade Bldg.
Broadway
NEW YORK 4
ruary 25, 1942, at the post office at New
York,, N.
—
REctor 2-0790
1 '■
i
1943
FORTUNE
Too bad you had
the misfortune
buy that junk that
lays at the
August 1, 1968
Yarnall & Co.
Phone
New York
STRAUSS BROS.
Members
St.*
Chlcagd 3, 111. (Telephone: State 0613),
in
charge of Fred H. Gray, Western
Representative;
1
Drapers'
Gardens,
London, E. C;> England, c/o Edwards &
Smith.
■
'
L:
Copyright
OUTRAGEOUS
PENNSYLVANIA
Monday
(complete statistical issue—market quo¬
records,
corporation,
banking,
and city news, etc.)
■J
AND COMPANY
.<
tation
Offices:
OF
^
Vertientes Camag'y
issue)
clearings, state
Other
Alegre Sugar
week
Thursday
every
(general
a
Punta
liCHTfnsTfin
"
1975/65
TURNPIKE REVENUE
3%% BONDS
' /
>
1,
August I, 1973
COMMONWEALTH
*
,
1, 1975/62 and Jan.
3-3341
Herbert D.
|
Jan.
DELAWARE RIVER JOINT
COMMISSION
REFUNDING BRIDGE 2.70% BONDS
Company
Publishers
25 Spruce
.
CITY OF PHILADELPHIA
BONDS
H. H. Robertson
'
Panama Coca-Cola
Coupons Missing
White Rock
.OR
1st
Mutilated
•
Red
;
;
7% Preferred
Rock
Public National
Rank & Trust Co.
Year-end
analysis
Bottlers, Inc.
,
CLE.de Witters & Co.
Hon Rose STrssmi
Established
Members New York Security Dealers Assn.
Members N.
120 Broadway, N. Y. 5, N. Y.
74
REctor 2-7634
Bottling
Teletype NY 1-2361
Y.
1914
Security Dealers Assn.
Trinity Place, New York 6, N. Y,
Telephone:
Teletype:
jBOwling Green 9-7400
NY 1-375
C. E.
Unterberg & Co.
Members New York
Security Dealers Assn.
61
Broadway, New York 6, N. Y.
Telephone BOwling Green' 9-3565
Teletype NY 1-1666
k-p
THE COMMERCIAL & FINANCIAL CHRONICLE
60
Delaware Power &
V
///7//7
Thursday, January 6, 1944
Mr. S. Edward Dawson-Smith
Light Co.
has
;///;'/;;
COMMON STOCK
Yeaf®oi
When Issued
Bo»dRevieVf
tnb«fi
1943
publication presents
tive resume of
the bond market
obligation. Ask for NC-01.
•
CO.
an
as a
^
J
-
Sold
in
Members N. Y. Stock
"
r
//:;::::;comi»ANY ?:: /;
105 WEST ADAMS ST.
NEW YORK
TELEPHONE
135 SOUTH
CHICAGO
BARCLAY
7-0100
;/7''//j/.
us ;
Trading Department
Stuaijs Secuiuties ;
Exchange and Other Principal Exchanges
115 BROADWAY
our
Quoted
-
Goodbody & Co.
authorita¬
whole and
analyses of the Industrial Bond Market, the
Railroad Situation, the Public Utility Industry
and the Municipal Bond Market. Also discusses
the investment outlook. Sent investors without
•
-
* 5;
FOR DISTRIBUTION
This annual
txce
Bought
NOW READY
associated
/;;///;:]/; with
'
;
become
■/:/7/:
TELETYPE NY
;
'
7
1-672
LA
!
■■■..■
INDIANAPOLIS
DETROIT
STREET
SALLE
CHICAGO 3
.
MILWAUKEE
//
\
ihC
9T0*bT^— »•"""?
Bowser, Inc.
.
7/
'Jac. Caaii
Maryland Casualty
HALSEY, STUART & CO. INC.
chicago
90, 201
>
South La Salle Street
Maryland Drydock
Struthers Wells Corp.
Wall Street
principal cities
other
and
new york 5, 35
Wyeth
cruttenden & co.
T
.
Members New York Stock Exchange']
,
to—
East and
•
Chicago 4, Illinois
./)
»;r<n
West Coasts;
NEW YORK
i'VA
ijj
'j
LOS ANGELES
;
.
Members Los Angeles Stock Exchange
?:
;
•
.•
;
jv,
-
..
AND INSTITUTIONS
DEALERS
FOR
Wires
209 South La Salle Street
Teletype
Chicago 35
Cp.
Direct Private
and Chicago Stock Exchange
'
Dearborn 0500
&
'Since 1893' ,•>.-;//
ij.
BOSTON
An Attractive Short Term Industrial Bond
Selling at
a
'
/
Discount
TRADING MARKETS
U-
EMPIRE SHEET & TIN PLATE COMPANY
on
FIRST
MORTGAGE
To
yield
6% BONDS, DUE
4
years over
•
111.), contended that "a new crop of war millionaires" will result if
the Committee's revisions are al-<S>-
2.
Total funded debt
3.
Net
4.
Net
property (exclusive of net current) equivalent to
more than $4000 per $1000 of funded debt.
said
5.
Earnings 1942 equal to $3.40 per-share of Common Stock.
Debt reduced more than $450,000 in past five years.\ ;
ation
6.
now
working capital
Memorandum
'
-
>
than 125% of funded debt.
more
on
M
Request
■
The
lowed to stand.
In
statement, Senator Walsh
a
proposed
amendments
would "emasculate"
the renegoti¬
the
--
protection
existing
the
down
strike
and- would
statute
against
profiteering "allow¬
war
ing, and in some cases, compell¬
I, Thompson G/Co., Jric./i
and Situations for
Markets
120 Broadway,
Tel. REctor 2-2020
Dealers
\
(1
/
ing large groups of war contrac¬
make couragepus profits."
Associated Press Washing¬
to
tors
■
7 In
ton :
New York 5, N. Y.
tional
addi¬
the following
advises,
„
Teletype NY 1-2^60
^
an
war
"Under it war con¬
have
tractors
lib¬
allowed
been
their war business,
but inordinate profits have been
eliminated. Through its operation,
soldiers and the public have been
eral profits on
giving below the text of the joint'resolution introduced
in the House on Dec. 16 by Representative Dewey (Rep., 111.) pro¬
given
viding for a central reconstruction fund to be used in "joint account"
with foreign governments for rehabilitation, stabilization of curren¬
orbitant
cies, and reconstruction.
•, Mr.-Dewey, a former Assistant Secretary of the Treasury in the
plies."
no
group
profits
Poland
on
1927
from
to
1930,
House
the
fore
currency
amples
Committee
on
Affairs
urging
Foreign
Dec.
17,
adoption of his new international
plan. He proposed it as an amend¬
ment to the bill under considera¬
tion which provides for U.
ciated
with
the
firm
as
asso¬
head
of
S. par¬
their expanded bank stock depart¬
ticipation in work of the United
Nations Relief and Rehabilatation
ment. Mr. Butler has been in this
phase
of
the
brokerage business
for 18 years,5 having been with
In describing his proposal on
G. M.-P, Murphy & Co. for seven
the floor of the House on Dec. 21;
years in charge of its bank stock
Representative Dewey said that it
department / and
more
recently
"is not only germane but indis¬
with Frederick H. Hatch & Co.,
pensable to all matters of rehabili¬
Administration.
Inc.
Mr. Butler's association with
reconstruction, because!
Huff, ;Geyer & Hecht was previ¬
bring all such efforts under]
ously reported in the "Financial
a
single supervision; hence, the
Chronicle" of December 30th.
American people will know*5at all"
tation and
it will
Mr.
the
in
Dewey
post-war period.":
explained 4 that the
reconstruction
central
vided
•
his
in
fund
resolution
struction bank." He further said:
"It
also
cooperates
with
that
section of the United Nations Re¬
lief
and
tation
Rehabilitation
attempting
tration
work,
It
can
Adminis¬
any
rehabili¬
do
all these
things in joint account, that is by
specific
contract] agreement, with
(Continued
on page
84)
Townsend, Graff & Co., 120
Broadway, New York City, mem¬
bers
New
York
Stock Exchange,
Harry A. Greenhall and Irving Herzenberg have
been admitted to general partner¬
ship in the firm..
announce
that
Admission of Mr. Greenhall and
Mr.
Herzenberg
was
previously
these
war
contracts
show
over
in;: 1942
after taxes
value
but
'
Government
net
after
any of
/'
"
companies
'
earned
the
on
business."
war
Another
these
of
com¬
the
several
are
which
have 'earned
in
500%.
du Pont, Homsey
BOSTON
furnished in obedience to
and /Sunder
;
„
criticized:
permitting
an* amend¬
"de novo" ap¬
was
peals to the Court of Claims of all
renegotiation
those
which
contractors
take
to
BS 424
DALLAS
Bought
—
Sold
Quoted
—
/•;///Di\ Pepper 4 ///;////
Republic Insurance
;
;;
Southern Union Gas Common
So'western Pub. Serv. Com, & Pfd.
Dallas Ry. & Terminal 6%
All Texas
Check
us
1951
Utility Preferred Stocks
on
Southwestern Securities
including
cases,
already
have agreed to close, and another
which would require renegotiators
Teletype
WPB
a
.
negotiation for all war produc¬
tion
except-; combat / weapons,"
they said.
Also
Co.
Building
MASS.
9,
4330
which
the
minority condemned as a "sleep
er," retroactively would exempt
prices and profits on any article
ment
Bank
Shawmut
Capitol
,
into 7 account
RAUSCHER, PIERCE & CO.
DALLAS, TEXAS
Houston
.
San Antonio
-m
Fed¬
eral taxes and probable post-war
reconversion
in
costs
suitable profits for a
1
In
our
computing
issue of Dec. 30,
the
ma¬
jority report of the Senate group
on
the
on
page
tax
bill
2652.
was
Also
ST. LOUIS
contractor.
referred
in
this
An
Situation
Interesting
In
to
a
Growth
Industry
-
r
issue
were
Secretary of the Treasury
Morgenthau's
criticism
(page
2665) and Senator George's reply
(page 2664). /
•
companies
excess of
York Corporation
COMMON
Analysis
on
/
request
negotiation
Similar
ment.
tained
by
the
in
Treasury
the
War Depart¬
cases
files
of
^ltason, Tenenbaum, Inc.
*
"Incidentally," these eases have
been solely selected from among
cases which are in process of re¬
are
con¬
the
Navy,
Departments,
the
803
Announcement / is
Samuel
made
Weinberg,; for
that
the
past
several years with S.; H. Junger
Co., has become associated with
the
over-the-counter
securities
the
the
"standard
Maritime: Commission
Shipping Admini¬
Landreth
Bldg.
ST. LOUIS 2, MO.
Teletype—-SL 486
L. D. 240
firm of C. E. de Willers & Co., 120
Broadway,
New York City, as
Manager of their Trading Depart¬
ment. Some years ago, Mr. Wein¬
stration."
berg inaugurated an active service
Declaring
"in the
long
run to brokers
by bidding on bonds
business
itself
will
pay
most with
missing coupons or bonds
dearly for any recurrence of war that are mutilated thus creating a
profiteering," the minority called market for "poor delivery securi¬
for
the
defeat
of five specific ties."
Through his new associa¬
amendments.
tion, Mr. Weinberg will continue
The
proposed
exemption
of to render a personal service as a
War
commercial
articles"
from
renegotiation, they claim,
"would permit excessive profits,
clear and free of taxes, amounting
a
STOCKYARDS, PFD.
companies listed is 965% and
there
reported in the Financial Chroni¬
cle of December 23.
to
UNITED
section,
panies as shown by their books.
The highest per cent earned by
and
do
..
statement,,
had
have
the
100%
RFC,
pro¬
"can
everything proposed by the Treas¬
ury stabilization fund and recon¬
which
with
his
"
of
"Forty
and
times the extent of their commit¬
ments
in
commented:
that John Butler has become
, 1
minority re¬
200 /gjjecifip1 ex¬
not hame
did
firms
the
Huff, Geyer & Hecht, 67 Wall
Street, New York City, announce
sup¬
.
excessive ' profit
of
He
taxes.
stabilization
testified be¬
war
Mr. Walsh said the
port would .list
and ♦>
Administration
and
///v-'///'/:'
i
_
United States financial adviser in
assurance
would make ex¬
during the war
munitions
from
of
measure
a
that
renegotiation the profits on prod¬
ucts not physically incorporated
in
a
completed
contract
item
"actually compels profiteering on
QPA
has ceiling.
"This mysterious provision may
effective means of
profiteering," the be tantamount to repeal of re¬
Senator said.
are
minority said another sec¬
would exempt .from
renegotiation statute
"The
provided
Coolidge
REMINGTON ARMS
UNITED ELASTIC CORP.
which
tion
directive
reported:/
was
limiting
We
BIRD & SON
COLONIAL STORES
Connally (Dem., Tex.); La Follette (Prog., Wis.), and Lucas (Dem.;
7 times.
less than $950,000.
minority group ot the Senate ..Finance Committee criticized
Jan." 4 several proposed amendments tp the war contracts rene¬
gotiation law in the pending tax bill. .
<k
" F
1
The minority report, signed by Senators Walsh (Dem., Mass.);
8% to maturity
over
Interest earned average past
1.
1948
A
quarter million dollars,"
brokers'
Willers
broker.
Chester
E.
Co.
509 0UVE STBell
System
Teletype—-SL
80
was
Traders
York.
s,
SAINT LOUIS
de
recently elected Sec¬
ond Vice-President of the Securi¬
ties
St/x
-
.
'
Association
of
New
Members St. Louis Stock Exchange
nWjC^ffiOT^wwvTi;^AA^*•
«%^aVMN -'«•
mj^tiwwMww"auMnu«t
***»%
•"» itu
ijVj/,AK'i'1' i{, irii'TA'/
n .,'\lu*wi.u.. ^«M«vi
i
.'•••'
Volume
•
.
•
•
•
■
■
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
159
.J
••
•
.
"A
Reappraisal of Railroad Credit"
A discussion
Bond Brokers
road
61
of the present and future position
securities,
particularly
reorganization
of rail¬
securities.
By Patrick B. McGinnis
Copies
Vilas & Hickey
Members
:'.
•'••'
'.
••
•
v
York
New
'
•
*
•
'
"
■
The
•■
•'
seizure
of
the
•
/
.
.:V
!•'.'■
'
railroads
* •
5
'
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v
'
•
•
■
New
York
5s, 1953, Bonds and C/ds
4V2S, 1967
Exchange
Stock
Broadway
61
: j. rVA? !•]•:•••'
NY 1-911
Brown
New York 6
Telephone—DIgby 4-4933
Bell Teletype—NY
Company
5s, 1959
1-310
HART SMITH & CO.
The Seizure Of The Roads
*•"•*•>;-. '
•.
Abitibi Power & Paper
above
request
pflugfelder, bampton & rust
Telephone: IIAnover 2-7900
l',
the
on
written
on
.."..i
Members
Teletype:
address
Aldred Investment Trust
•'•"• v'',w. '. !' •'\
'*'
New York 5, N. Y.
49 Wall Street
the
available
Exchange
Stock
"'*•' ••: .'• ,*'
|J •%*}"
of
subject
y.'-:"
" ,4
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/
'
Railroad Securities
•
the Government has little in
common with the corresponding move by President Wilson
in De¬
cember, 1917.
Then lack of coordination in traffic movements, with
the " fact that
WILLIAM
St., N. Y. 5
IIAnover 2-0980
Bell Teletype NY 1-395
has not
other
52
by
factors, had caused such congestion that inadequate transporta¬
tion service
the bottleneck of
was
the whole
ernment action was. for the purpose
control
by a central authority.
No
such
this
condition
On
war.
the
accomplishment
the
commands
has
the
railroads
admiration
of the
-4
>#
; A
'•;
(•>■■<.
President Roosevelt's
move
effort.
The gov¬
of establishing coordination and
—
in
the
contrary,
of
.V Vs:':
country.
arisen
war
was
Friday Right Bond
Club Dinner Dance
|On Saturday evening, Feb. 12, the
the
of
purpose
putting
th<?
except in such manner as neces¬
sary to secure the purposes of the
order.
that
a
The
deduction
is
return of the roads to their
owners
labor*
natural
is
contemplated
relations
as soon as
become
stable
financial section.
■;
Admit Daniel Condon
'Garvin,
Bantel
again, following the parallel to be
Co.,
120
Broadway, New York City, mem¬
found
bers of the
coal
in
the
mines
1
taking
of the
over
earlier.
From
the
January Monthly Bank Letter of
the
National
City
Bank
of
New
change,
&
New York Stock
will
Daniel
admit
Condon to partnership in the
shortly.
Condon will
Mr.
alternate
the floor of
on
majority of the major carriers had finally used up
their tax credits and were thus subject to excess
prove highly favor¬
able. It is now estimated that net after taxes and
charges will not
fall far below $900 million com-®
pared with roundly $960 million to worry about while maturities
of ten years or under (exclusive
reported in the preceding year.
the
balance
Ex¬
G.
firm
act
the
as
ex¬
York.
change for Henry S. Allen, Jr.
;
a
There
are
number
a
of
uncer¬
1943, andwages,v even though
largely offset by the tax factors,
will be higher. Also, the carriers
will
have
not
benefits
any
increased rates which
from
in ef¬
were
fect in the early months of
Finally there will be the
of the war,
1943.
course
which will be the
ma¬
jor determinant of traffic volume.
Regardless
the
of
duration
of
Securities
Chicago
O'
~,
of
■
'
.J
.
>;y:
& North Western
security behind the ma¬
bonds, including the San
Francisco Terminal property and
virtually all of the Central Pacific
mileage, as well as the security
which supported loans
Minn., St. Paul & S. S. M.
(When Issued)
diverted
be
tional debt
—
Sold
—
this
cause
Quoted
and
retirement,
in
rail
many;
'nointed
pointed
to
.any
great
yet
extent
traffic
even
if the
European
The
120 Broadway, New
Telephone:
tirement
Ernst&Co.
York 5
BUY
Broadway, New York 5, N. Y.
Boston 9
St.
231
Telephone:
So.
LaSalle
LAfayette 4620
WAR
''
MEMBERS
New
York Stock Exchange and
other
leading Security and Commodity Exchs.
REctov 2-5000
120
19 Congress
complete
St., Chicago 4, III.
BONDS
details
Pacific's
are
not
as
1943
It
.
not
R. R. Bonds
Discussion
free
sent
on
request
148 State St., Boston, Mass.
Tel. CAP.
of
0425
:
:
Teletype BS 259
N. Y. Telephone HAnover 2-7914
in¬
which were pre¬
increased by operations
St. Pauls
,
Old Colony
is estimated that net income
last year ran between $60 million
Seaboards
and $65 million and even with
jjeavjer taxes and increased wages
re¬
it
is
Frisco's
expected that net will hold
above
now
$50 million in 1944. -Up to
the
company
has concen¬
Bought
—-
Sold
trated its debt retirement program
near
on
of
outset
war
as
securities
Louis, San Francisco
3%s.
the
maturities, which at the
the
boom
were
ing
re¬
the
intermediate
J.F.Reilly&Co.
admit¬
tedly a serious problem. By now,
however, the problem of refund¬
to
debt
holdings
St.
Appraisal of the
in the last two months of the year,
were needed to retire the Secured
rgil
financial ..progress ■ already' made,
that, the company still has very
substantial;- liquid resources, and
that the Pacific war will support
that
A Post-War
resources,
sumably
out tnat
out that
not
indicated
these
looked
securities
It is
it is
securities'have
Southern
other Exchanges
5, N. Y.
$20,000,000 or more on Oct. 31.
1943, compared with none a year
earlier. Only about $29,300,000 of
..
Members New York Stock Exchange
New York
Teletype NY 1-891
to
1943..
should be brought to a successful
conclusion some time this year.
Josephthal&Co
Street
Bell
cluded in current assets amounted
in
anticipate that junior bonds
flected
Western Pacific
Bought
to
is
Government
,
these
,
Incorporated
63 Wall
warrant
it
With the background of a vir¬
tually assured high level of earn¬
ings and the prospect of addi¬
advance
4
Frederic H. Hatch & Co
to
for in 1944
iy44.
New Securities
~
paid in recent years.
Finances are still strong enough
will be the leaders in the further
Delaware Power & Light
aggregating
$100,000,000 (RFC, banks and the
3%s, 1946) which have been re¬
and the stock of Southern Pacific
Railway Co.
•
Stock
turing
rehabilitation of practically all of
men
Chicago & North Western
and
have the
to
war,
1944 than in
:
General Income "Scrip"
further
substantial
all present indications
debt reduction in the coming year.
maintenance'; of peak
As of the end of October cash
traffic
volume
throughout
the
stood
above
$176,000,000
major part of 1944 at least, and items
while
receivables
(believed
in
even with taxes, wages and rates
exerting a drag on net, as com¬ large measure due from the Gov¬
pared with a year ago, there is ernment) were about $94,000,000.
little question but that earnings The total of these items, roundly
will remain at high levels in re¬ $270,000,000 compares with $146,lation to the pre-war experience. 660,000 a year earlier. Net work¬
Also, there is little question but ing capital during the 12 months
that the debt retirement programs had increased approximately $52,will again be pushed.
In fact, in 000,000 to $126,000,000 even with
and
view
of the complete financial the interim debt, reduction
dividend payments.
In addition,
the
will
New "When Issued"
"New"
General Income 4s, 1996
tainties in the earnings picture for presumably been reduced below
the current year.
Certainly the i $150,000,000. To aid in refunding
tax bill will be heavier than in these maturities the
company will
marginal carriers it is gen¬
erally
expected
that
art
even
larger proportion of net income
specialize in the
MINNEAPOLIS &
ST. LOUIS RAILWAY
of regular serial equipments) have
the
We
Toronto
of
profits taxes, final earnings results for 1943 will
point
Garvin, Bantel Co. To
Montreal
Despite the impact of increased wages (the full extent of which
as yet been determined)
and the heavier tax burden due to
s
Friday Night Bond Club will hold
Its eighth annual dinner-dance at
railway unions in the position of.
the Hotel Delmonico, 59th Street
working
for
the
Government,
and Park Avenue, New York City.
thereby subjecting them to pen¬
Membership of the. Club in¬
alties against strikes, and to put
cludes employees or officers of
the roads under the protection of
most of the large firms and bank¬
the Army both for security and
to aid in operation if necessary. ing institutions on the "Street."
The aims and purposes of the or¬
The President instructed that the
ganization are to create a better
ordinary management, operation
understanding among, and con¬
and financial transactions of the
tact between, the personnel of the
roads were not to be disturbed
Tor
New York
term
ma¬
■
'
Members
York
New
Ill
so large.
It
therefore, that the com¬
pany may soon change its former
policies and start on the retire¬
ment of the longer term Deben¬
tures and Oregon Lines 4V2S," 1977.
yet available.
felt,
Figures that have been published
show a reduqtion; of some $63,000,000 in non-equipment
debt
from Dec. 31, 1942, through Jan. These bonds are
outstanding at
2, 1944, and it seems likely that slightly less than $206,000,000 anc
the final figure will be in excess
are
still selling in the 60s.
Use
of $65,000,000,
During, the1 next of
cash to Repurchase these issues
five years the company now has
would naturally result in a far
only
about
$10,000,000 Central
Pacfiic European Loan 4s, 1946
(Continued on page 81) V
Assn.
Dealers
Broadway, New York, N. Y.
turities does not loom
is
Security
REctor 2-5288
Bell
System Teletype, N. Y. 1-2480
Beech Creek
R. R.
iV 4% Stock ($50 par)
•ts/fIf!*(>:>
"Rock Island"
We maintain active trading markets in:
Reorganization
SEABOARD 4s/50
Profit Potentialities
T
on
•->.'
■■■
'
it**
Circular
SEABOARD 6s/45
Circular
"
i'mq ' '.u ■
(Lessee New York Central R.R.)
on
request
SEABOARD 4s/59
request
SEABOARD-ALL FLORIDA 6s/35
Mclaughlin, baird & reuss
1. h. rothchild <&
Members New York Stock Exchange '
•'
ONE
TEL.
WALL
HANOVER
STREET
2-1355
'
NEW
TELETYPE
m
YORK
NY
S
1-1310
co.
specialists in raik
120 broadway
COrtlandt 7-OI30fW
n. y. c.
Adams & Peck
63
5
Tele. NY 1-1293
Wall
Stree^ New York 5
BOwling Green
Boston
9-8i2j)
Philadelphia
Tele. NY 1-724
Hartford
THE COMMERCIAL & FINANCIAL CHRONICLE
62
Thursday, January 6, 1944
Rated AA
CLEARANCE
Long Bell Lumber
of security
4 lA % Bonds
Inquiries Invited
50,000 April 1, 1957
/
'-V.
A
:■
Members New
1529 Walnut
For
Insurances
Stock Exchange
Yorfy Stock Exchange
Philadelphia 2, Pa.
■'
PHILADELPHIA
circular
^
request
on
Municipal Bonds
!
•
-
1421 CHESTNUT
/
'
•
Member
Member
Federal Deposit Insurance Corp.
.'
N. Y. WH 3-7253
Phila. RIT 4488
:
Chestnut Streets
Federal Reserve System
PH 265
—
1.25%
<
Descriptive
V"
A. Webster Dougherty & Co.
Lives and Granting Annuities
on
15th and
St.,
Bell Teletype
,■
•
•
PENNSYLVANIA COMPANY
THE
Members Philadelphia
$28,000 Feb. 15, 1954 1.15%
<
;•
BUCKLEY BROTHERS
$78,000
NORTHAMPTON COUNTY, PA.
of the best and the cost is very moderate.
request
on
experi¬
an
transactions.
Our facilities are
Memo
4
Security Dealers
for handling the clearance
and
Brokers
department
enced
Common
to
offer
We
FACILITIES
STREET
PHILADELPHIA
!
New York-
Teletype
Philadelphia V
Rittenhouse 2580
•-
-
BOwlingJGreen 9-8184
PH 70
Pennsylvania Brevities
Philadelphia Bank Stocks
Central-Penn National Bank
Renewed Activity in
Nat. Bk. b Tr. Co.
Fidelity-Phiia. Trust Co.
Corn Exchange
Girard Trust Co.
U.G.I. Shares
approval by the SEC of the distribution to United
Last week's
Improvement stockholders of 1,162,000 shares of Delaware Light
brought renewed activity and interest in U.G.I,
Gas
was
Throughout the year 1943 the Pennsylvania municipal market
definitely and consistently strong. Dealers were faced with a
scarcity of new issues and the market received very little in the way,
liquidating orders with the exception of some City of Philadelphia
v -/-"vr/V <v~ ■■■':'-.a..
There were, however, a few sales that provoked comment as to;,
Philadelphia National Bank
strength of the market and<§>Provident Trust Co.
indicated a willingness on the part high-yielding issue. It is under¬
Phila. Transportation Co.
outstanding
will
receive
1/2CW
of dealers to step up into higher stood that an additional issue of
3-6s 2039, Pfd. & Common
share of Delaware Light & Power. olution which will "stagger" di¬
price levels to obtain merchan¬ $1,500,000, to be sold in the future,
With the new Delaware stock ac¬ rectors' terms of office from one dise.
In June, Allegheny County will complete this financing. ;
II.
tively traded on a "when issued" to three years. This will assure a sold $1,500,000 bonds from 1944 to
Firinness throughout the year
1421 Chestnut Street, Philadelphia 2
basis around 15, the distribution greater continuity of direction by 1973 as
Phila. Phone
Neiv York Phone
iy4s at 100.20. This was an characterized City of Philadelphia
has an indicated value of about persons familiar with the opera¬
Locust 1477
HAnover 2-2280
issues.
Improvement in the city's
exceptional price and coupon con¬
Teletype PH 257
tions and affairs of the company.
75 cents per share of U.G.I. Physi¬
sidering the long average life of financial affairs was officially rec¬
cal distribution of the dividend is Mr. John S. MeMartin, Vice-Pres¬
the issue. In October, the City of ognized on January 3, 1944, when
not
expected before the latter ident of Selected Industries, one Pittsburgh sold $1,000,000 bonds, city bonds regained an "A" rating,
the
Tri-Continental
Corp.
part of May. .'
-/,■/: of
1944-1963, as 1.10s at a bid of Edgar W. Baird, Jr., City Trea¬
We Maintain Markets in
U.G.I, directors also state that group of investment companies,
100.376, or an interest cost to the surer, announced that during the
has been nominated as a director.
action will be taken at the-an¬
city of about 1.06%. The City of first eleven months of the year,
Philadelphia Trans, Co.
nual meeting, May-1, 1944, on a
Application to list the 962,046 Allentown sold
a
small
issue receipts reached a total of 99.09%
All Issues
proposal to change the present shares of York- Corp. common
i$10Q»QOO>;;/1954:1952^JjM^ of4he-budget estimate* for the en¬
"no par value" classification of stock on the New York Stock Ex¬ bid
price of •10-2-26y reflecting an tire year,- indicating a comfortable
Jacobs Aircraft & Engine
U.G.I, common to a stated par of change has been made by the
interest cost to the city of about overage for the year when final,
$13.50 per share and to exchange company. It is expected that the .58%.
figures are available. The unex¬
Autocar—Com. & Pfd.
each present share for 1/10 share listing will become effective the
Of note in a comparatively dull pected success of the Refunding
of new U.G.I.
This action comes latter part of this month.
year
was
the refunding of the Plan marked the turning point in
in belated recognition of demands
Delaware River Bridge issue.
A the city's credit rating. Of a total
of stockholders and dealers, dat¬
Pittsburgh Railways In Spotlight large syndicate of dealers pur¬ of $161,000,000 bonds authorized
ing
from
last
spring,
when
for exchange under the Plan, over
Restive holders of some $4,000,- chased $37,000,000 new 2.70s as
U.G.I.'s holdings of Philadelphia
1500 Walnut St. Philadelphia 2
000 in underlying bonds of the against the former coupon rate of $100,000,000 were converted or ex¬
Electric Co. and Public Service
N. Y. Phone
This amount far ex¬
Teletype
Pittsburgh Railways Co. system 4i/4%. The market absorbed the changed.
CAnal 6-4265
PH 16
Corp. of New Jersey were sched¬
on
an
over-subscription ceeded the expectations of the
and $1,000,000, more or less, of di¬ issue
uled for distribution.
basis and the bonds are currently managers
and
group
members
visional stocks, were represented
Because
of the fact
that the
negotiating the refunding.
;
by a dozen security dealers from selling several points above the
program of disposal of assets of
The outlook for 1944 is for a
Philadelphia and New York who issue price.
U.G.I, is well under way and that
scarcity
of offerings
The financing of the Pennsyl¬ continued
met in the offices of Craigmyle,
further negotiations are in prog¬
vania Turnpike entered its latter with a further firming of prices;
Akron, Canton & Youngstown
Pitpiey & Co., 1 Wall^St., on Dec.
ress, the board has decided not
Little can be expected in the way
17 to discuss ways and means of stages with the sale to the public
SYzs & 6s and When Issued
to appeal the two divestment or¬
of an additional $1,500,000 bonds, of public works or municipal im¬
finding a practical solution of the
ders entered against the company
gn
amount quite insufficient to provement issues until after the
traction company's problems.
by the SEC.
;
•
jj
Northern Ohio Ry. 5/45
satisfy the public demand for this end of the war.
Operated
by; court-appointed
Trustees since 1938, the system
York Corp. Initial Dividend
has adequately met the heavily
quest of issuer unless proposed
expected to maintain revenues
Philadelphia Reading Coal & Iron
With the payment of an initial
at peak levels over the medi¬
request be approved by 66%% oi*
increased demands of war-time
5s & 6s
dividend of 15 cents per share on
the amount outstanding and theri
um term. Earnings for 1943 may
transportation.
Equipment and
Jan. 4, to stockholders of record
be somewhat greater than the
only provided less than 10% have
rolling stock is in excellent con¬
Dec. 20, York Corporation signal¬
not
dition.
objected. The SEC, in all
$42 earned per combined pref¬
Earnings are at all-time
CERSTLEY, SUNSTEIN & CO. ized completion of its Plan of
erence i share
in
1942.
While
fairness, ruled against the right of
high levels and the Trustees find
213 So. Broad St. Philadelphia 7, Pa.
Recapitalization,
and -Merger. themselves
the Chicago Exchange to enforce
costs
are < somewhat
up,
the
possessed of some¬
New York Phone
Bell System Tel.
Steps in the Plan included mer¬ thing over
a
retroactive rule, but promised
WHitehali 4-2300
PHLA 591
company, files
a
consolidated
$13,000,000 in idle
ger of the former York Ice Ma¬
to do some cogitating of its own;
cash.
return with that of its parent,
Following * their appoint¬
chinery Corp. into York Corp., ment five years ago, the Trustees
Over-the-counter dealers are sug¬
Standard Gas &
Electric Co.,
refunding former York Ice Ma¬ devised a Plan of Reorganization
gesting that it is a poor rule that^
thereby achieving a reduction
chinery 1st 6s, 1947, with an issue involving a drastic scale-dowh *o£
won't work both ways. If stock-;
in Federal tax
liability.
The
of York Corp. 1st 4148, and the
American
holder approval is to be required,
Standard Gas & Electric Plan
capitalization. The Plan was never
exchange of 15 shares of York acceptable to public security hold¬
for de-listing, why shouldn't the
of Reorganization, thus far ap¬
Corp. common for each share of ers who now believe it is inap¬
same approval be required for the
Investment Securities
proved by the SEC, provides for
Penna. Co. for Ins.
on
& Power Co. common
Lives etc.
of
issues.
.
special meeting of U.G.I, stockholders has been called
for Feb. 29, at which time ratification of the distribution is expected. the
Each holder of one share of the 23,252,000 shares of U.G.I, now
A
shares.
N. NASII & CO.
W. H. Bell & Co.,
Inc.
.
,
York
Bought
Sold
—-
—
AND
Established
CO.
Sept.
for
30,
the
fiscal
1943, the
of $31,-
with $22,541,preceding fiscal year.
Net income is reported as $902,314, equal to 97 cents per common
compared
345 for the
10, PA.
Telephone Rittenhouse 3940
Bell System
ended
394,281,
Exchange
share,
Teletype PH 380
the
with
compared
previous
$1.11
for
comparable period.
The
Smith Barney Announce
Five Mew Partners
The
admission
of
five
'new
general partners is announced by
Smith, Barney & Co.* <14 Wall
Street, New York City, members
of the New York Stock Exchange
and
other
Exchanges,; effective
January 1. They are W. Fenton
Johnston. Holden K. Farrar, Norbert W. Markus, James Cheston
4th,
and
C.
Cheever
Hardwick.
Joseph R. Swan has retired
general
limited
partner
to
as
become
taxes.
Provision
for
for
1943
were
$2,196,000 compared with
$716,000 for the previous year.
New
the
business
year
booked
during
totaled
$34,462,556, of
which 85% comprised refrigera¬
tion4 and air conditioning related
to the war effort. It is
significant,
however, that less than 2% of
total
productive
floor
space
has
been
completely
converted
to
manufacture of direct war mate¬
rial^ Thus the company's
a
version
partner.
heavier
Federal and State taxes
a
These partnership changes were
previously reported in the Fi¬
nancial phronicfe of December 23
and December 30.
slight decline in net-is en¬
tirely attributable to the impact
of
problem
appears
recon¬
to be
comparatively simple.
The
propriate and impossibler of con¬
summation.
The
Philadelphia
retention
the
Philadelphia
of
Company.
annual
meeting
which owns all the
preferred stocks of
Pittsburgh Railways and is a very,
substantial holder of many, under¬
and
common
lying securities, opposes any sub¬
ordination of its interest. It would
apparent that the conflict of
seem
public holders
Philadelphia Company
between
interests
the
and
can
only be resolved by compro¬
mise and there is good reason to
believe
that steps now being un¬
dertaken
may
be
productive
of
such results.
with
in
<
petition to dismiss the Trus¬
teeship and to return the proper¬
a
ties
to
its
owners
without
reor¬
ganization.
Such
a
procedure
would be highly desirable from a
tax standpoint.
Preliminary let¬
ters of inquiry suggesting such a
delivered to tlfe
Philadelphia Company early this
week
by holders of substantial
program
were
amounts of securities.
of
York
Corp. will be held Jan. 11 at
York, Pa. It is proposed to amend
the by-laws by
adoption of a res¬
Philadelphia Company
The high rate of war produc¬
tion
in
the
opportunity
Pittsburgh area1 is
for
excep¬
tions
Or objections to the Phila¬
delphia & Western Railroad Plan
of Reorganization
will be at a
with the se¬
Such a ruling^
lot of in-(
ternecine strife, .which the busi¬
District
both ways, would save a
Court.
Special Master L.
bondholders
gage
the
of the
terms
have accepted
plan. It is ex¬
that Judge Kirkpatrick
final approval.
pected
rule
*iyy-.
Members
Stock
with
of
the
Exchange
Philadelphia
keen
interest
the
the
SEC ;and
tween
Stock Exchange
following
are
the
tiff
be¬
(Continued
The
Regarding the de¬
of
tfye issuing corporation.
Fuller Manufacturing Co., for
reasons
and
mon
which it considered good
sufficient, withdrew its com¬
shares from the Windy City
board.
The
Chicago
feeling
change,
promptly
Stock
a
that
Ex¬
outraged,
itself
adopted
retroactive
security
ruling
providing
should
not be. withdrawn on re¬
a
on page
m
,
J
63)
" i:
—
Buckley Irolbers Add i
G. E. Parks la N, Y.
Buckley
the
New
Brothers,
members of
and
Philadelphia'
York
Stock 'Exchanges, announce
G. Everett Parks
is now
with
ciated
them
as
Sales
that
asso¬
Man¬
of the New York office, 63
ager
Wall Street.
Chicago
listing of securities on the moti¬
vation
V
could well do without.
ness
on
I.. Peininger reports that $1,941,000 out of $2,089,000 first mort¬
holders.
curity
Jan. 10 before Judge
W. H.! Kirkpatrick in the U. S.
hearing
trend of thought is
public holders to join
the Philadelphia Company
the
Final
will
The present
for
original listing? ' In either event,
it would seem that the
choice
should properly rest
Company/
statement
company reports net sales
Title Building
PHILADELPHIA
its
year
1923
Members Philadelphia Stock
Land
7%
Corp.
latter issue.
In
KENNEDY
Ice; Machinery
preferred, thereby eliminating the
Quoted
Now S. T. Jackson & Co.
r
YOUNGSTOWN,
OHIO—T h e
name of Flannery-Jackson &
firm
Company,
Inc., Union National
Bank Building, has been changed
to The S. T. Jackson &
Officers
Inc.
are
J.
of
the
Stacy T. Jackson,
C.
Jean
Manning,
L.
Arthur
Truog,
Company,
firn^
new
President;"
Vice-President^
Treasurer,
Morgan, Secretary.
and
'
"1.
Uff. Volume 1159
Number j'4244
THE COMMERCIAL & FINANCIAL
But there
Tomorrow's Markets
,
thing the
had accomplished in its
group
was
it"
reached
We
It had
t;
Current
market
end
cates
renewal
of
of
from where values
action
indi¬
hesitation
upward
and
'
poke their heads.
'
•'
By WALTER WHYTE
Up to
;
market had all kinds of symp¬
toms that
decline
dull
pointed if not to
then
certainly do-
lative interest.
was
a
But
causes
interest
interested
not
in
action the
whatever
the
airplanes, together
pointed to higher levels..; I
therefore recommended* the
they spelled dis¬ purchase of two stocks at
cific
prices,
Curtiss
The
spe¬
tion
the
of
%;
mThe favorable action of
war,
The
the end of which seemed
to be
just around the
seemed to be
corner,
on
again,
1 increased
supposing
an
sustained
demand
planes. The other
pre¬
the
signals of
averages
air¬
beginnings to
point to I warned that storm
clouds
months
had
column
,writ-
was
.
airplane
declining.
While other groups were mer¬
rily playing leap frog on the
way up the airplane issues
displayed
a
lackadaisacal
quality which seemed strange
in comparison with the
prod¬
ucts these issues
represented.
year
ended
$2,176,146,
-
Trust
Nov.
$5.44
or
On
was
that
day
placed in
which
the
30,
market
a corner
from
1943,
George
reported
ceding year, as reported by James
Gowen in his report to stock¬
holders.
Philadelphia
bank
stated that the
was
repaid
1943
at
level
the
year.
of
ending
Dec.
31,
their
$450,000
prising
index
yield
ket
the
II.
was
Nash
Increase
for
the
Co.
&
$187,538,000
4.55%.
value
N.
com¬
in
and
mar¬
year
86):
?
"
All Issues
of
1942
Philadelphia Real Estate
Bonds & Stocks
the
$750,000
plant im¬
for
Samuel K. Phillips & Co.
Members Philadelphia Stock
Exchange
Philadelphia & Reading Coal &
Iron Co. reports net profit of
aggregate
; market value of 10 stocks
*
in
highest
In the week
the
Transportation Co.
company had
provements.
stocks
670,432,
$1,-
Packard
Bldg., Philadelphia 2
Teletype
PH
N. Y. Phone
375
REct&r
taxes, for the 12
months ended Sept. 30, 1943, com¬
pared with a loss of $521,334 for
the preceding
12-month period.
We
have
a
'
Jones &
drive
Recapitalization plan that
involve I refunding-- of
may
rate
the
is
under
,
over
consideration
by
..Scranton-Springbrook Water
Issues thatfmay come
Service Co.
ers
for the fiscal year
ended Oct.
2-.0040
after
was
•
page
Exchange
Philadelphia
Russell, Jr.,
Stetson Co.,
of $406,218,
net
borrowed
J
L.
profit
equivalent to $1.20 per common
share, compared with $174,931, or
$0.23, for the preceding' year. It
E.
things had under the plan are $16,000,000
happen; - Either it would Scranton-Springbrook Water Ser¬
vice
and "B" 5s,
start
$11,000,000
nibbling at offerings or Scranton
Gas & Water 4V2S, 1958,
it would back
away to lower and $7,800,000
Springbrook Water
levels.
A few weeks
ago in Supply 5s,' 1965.
>
looking ahead I believed the
In annual/ report to stockhold¬
weight -■ of offerings would
on
Co.
&
Stock
PITTSBURGH
sent
of
to
produce
steel
products
in
Southern Advance
Bag & Paper Co.
and resulted in 598
production records in 1943,
new
Common Stock
according to a report by the com¬
pany. New records were made in
firm's
plants
Aliquippa
and
interest
its operating rate to 102%
j
capacity
the
contimiing
Laughlin Steel Corp.'s
and
at
Pittsburgh,
Pa.,
McKeesport,
BOENNING & CO.
Cleveland, O.
to
(Continued
Pittsburgh
Kerner, Inc.
President of John B.
share, compared withA $1,722,928,
or
$4.31 per share for the pre¬
of two
one
31,
per
$35,000,000 outstanding debt with new
obligations bearing lower coupon
reason was
the
been
the
Girard
gathering.
All
good until Tuesday,
when this
i
For
for
were
of
were
and this held
for
decline the
a
were
earnings
yclosed
in the market itself. /
group
Co.
one
general list»was group doesn't make for a bull
airplanes. This may have market.: So
keeping in mind
causes.
Members
(Continued from page 62)
Net
V
the
been due to two
PFD.
Street, Philadelphia
Wright
only
group w h i c h
seemed divorced from the ac¬
&
CO.,
°\
Reed, Lear
Pennsylvania Brevities
ac¬
"A" and Lockheed.
■'
%
Investment Securities
1518 Locust
market
on
,
Private telephone wires to New
York and Baltimore
I
market
And based
• NEW YORK CITY
in
then
appraisals
interested
<
TRANSPORTATION
Rambo, Keen, Close
means so
with other stocks, seemed to
reflection of have reached a level which
a
,
basic
I
■
tion.
the conditions both here and
abroad.
It
use.
one
•
statistical
am
specu¬
Much of this
i
»u
different things •! to
many people that its defini¬
tion only leads to arguments.
a
period devoid of
tendency
to
care
few days ago the But if I'm
a
:
The term "values" is
many
mended.'
began - to
its
DIRECT PRIVATE WIRE
I.)
CHAS.
;;
4Je
.
(W.
PFIZER & COMPANY, COMMON
*
WARNER & SWASEY
COMPANY, COMMON
GIDDINGS & LEWIS MACHINE TOOL
CO., COMMON
TALON, INC., COMMON
PHILADELPHIA TRANSPORTATION
CO., 3-6, DUE 2039
PHILADELPHIA
trend—
equipment, airplane don't
specialty stocks recom¬
and
Vtf
.
Railroad
t-
'1
-
base
a
active interest in:
an
POWER & LIGHT
COMPANY, COMMON
PUBLIC SERVICE OF
INDIANA, COMMON
WEST PENN POWER
COMPANY, COMMON
IDAHO POWER
COMPANY, COMMON
MERCK &
COMPANY, INC., COMMON
'
\
it couldn't advance it at least
showed it had reached
always have
DELAWARE
level from where if
a
63
one
slide down the ladder.
v
CHRONICLE
160<5 Walnut St.,
J,
Hamilton
Cheston,
Vice-
Society, has been elected
director
of
vacancy
Reading
caused
by
Joseph E. Widened
Co.,
to
PH 30
Private Phone to N. Y. C.
President of Philadelphia Saving
Fund
Philadelphia 3
Pennypacker 8200
COrtlandt 7-1202
a
fill
death
:
of
•
Pennsylvania
Jersey
Municipal Bonds
and New
This advertisement is neither
v
an
offer
The
to
sell
nor a
solicitation of offers to buy
any
of these securities.
Dolphin & Co.
offering is made only by the Prospectus,
Fidelity Philadelphia Trust Building
PHILADELPHIA 9
Telephones:
Philadelphia—Pennypacker
;91,577 Shares"-"y:
r
'
...
•
."'.s
.
4
i-'.
•
;•
'
-y--.;•
■ *..m
4646
New
York—HAnover 2-9369
Bell System Teletype—PH 299
'•
Derby Gas & El&triclCorporation
A DELAWARE CORPORATION
Delaware Power &
Light Co.
Common
Common Stock
%
(Without
par
(when
Stock
issued)
value)
E. H. Rollins & Sons
Price $18
per
Incorporated
share
Pennypacker 0100
1528
New
York
San
Copies of the Prospectus
may.
be obtained from the undersigned:
Walnut St., Philadelphia
Boston
Francisco
Chicago
Los
Angeles
We maintain
primary markets in
the
leading New York Bank
and
Insurance stocks, and also in
spe¬
cial Public
Utility and Industrial
situations.
mllen m Co.
30 Broad Street
New York 4, N. Y.
HENDRICKS & EASTWOOD
INCORPORATED
Established
January 6, 1944
PACKARD
Rittenhouse
Race
1921
BLDG., PHILADELPHIA
1332
178S
New
&
York
BArclay 7-3500
Direct private wire to
Laird,
Meeds; N. Y. C.
Bissell
64
Ass'n Of S. E. Firms
Committee Heads
Delaware Power & Light
Clark, President of the
of
Stock
Exchange
Firms has announced the appoint¬
ment of the 14 standing commit¬
Association
(When distributed)
tees
Bought
—•
Sold
WE ARE PLEASED TO ANNOUNCE THAT
John L.
Common
Quoted
—
of
year
1944.
Association
the
AND
the
In addition to serving
Chairman
as
for
Mr. Harry A. Greenhall
of
Mr. Irving
Executive
the
Committee, Mr. Clark of Abbott,
Curtis
Paine, Webber, Jackson &
;'%V:V/vr
ESTABLISHED 1879
Proctor
&
Public
the
/--'v/
Vice
its present
to
advanced
of, the
and
the
Members New York Stock Exchange
l"z;.
Chair¬
Committee
Finance
Investment
which
taken
was
Light
in
Gas
series of
deals between that sys¬
Delaware Power &
consolidated
the bond
prospectus indicates share earn¬
ings about as follows for the new
The
forma
pro
in
statement
ably not merged because their
operations are in other States)
serve
a
substantial part of the
stock:
common
of
side
ern
the east¬
Chesapeake Bay and
peninsula"
Delmarva
$1.08
31, 1943__
Year Ended May
industrial
city of Delaware, and also a large
part of the remaining area of that
State. Two subsidiaries (presum¬
//%>//■;'%//
earnings
Light serves
principal
Wilmington,
Improve¬
Gas
United
and
tem
ment.
compared with
as
liabilities of $2,041,734.
current
complicated
a'
sociated
$3,804,475,
january 3.
1944
was
and
We
on
1942
pleased to
are
that
announce
K; Mr. Frank Ginberg
has this
day been admitted
as a
Paine, Webber, Jackson & Curtis;
General Partner
Office—Theodore A. Lauer,
Back
of E. F. Hutton &
thew
E.
Smith, Jr., of Harris,
Upham & Co.; Investment Bank¬
ing
jin
Committee
Special
and
Government
firm
our
Co.; Back Office
Sub-Committee—Mat¬
Technical
on
Markets
Bond
BROS.
o
Members New York, Security Dealers 4ss'n
'/.TV:
BROADWAY
32
—
DIgby 4-8640
Teletype NY 1-832,
Board of Trade Bldg.
'
NEW YORK 4
Eugene P. Barry, Shields & Co.;
Banking
Relations—Homer
A.
Vilas, of Cyrus J. Lawrence &
Sons; Sub-Committee on Educa¬
tion—Walter
W.\ Stokes,
Jr.,
'
1
'
.
.
CHICAGO 4
P
W'.-r Harrison 2075
834
Teletype CQ 129
Wire Service NEW YORK-CHICAGO-ST. LOUIS-KANSAS CITY
Through
January 1, 1944.
1.09 four counties in southern MaryCalendar year 1941—1.26
Stokes, Hoyt & Co.;", Customers'
land on the other side of the Bay.
Brokers—Thomas W. Phelps, of
Calendar" year 1940-----_r v * 1 -64
This territory is principally rural,
Francis
I.
duPont. &
Co., and
These
figures did not reflect helping to balance the industrial
Bond—Sydney P. Bradshaw, 'of
economies in operations or other load
in
Wilmington.
However,
Calendar year
';■*
Telephone COrtlandt 7-1364
Advisory
p;
Exchange (assoc.)
BROADWAY, NEW YORK 5, N. Y.
Springer H. Brooks,
of Piper, Jaffray & Hopwood, St.
Paul, who is Second Vice Presi¬
the "when issued" stock of Dela¬ dent of the Association,
initiated around 13 Vz and the stock named head of the Taxation
quotation, around 14-141/2. From the Legislation Committee.
Company, *
from As¬ of
over
New York Curb
120
appearing "in the sheets," the new issue
The
Chairmen
of
the
other
popular reception. The present company standing committees are as fol¬
between Delaware Power & Light and Eastern lows; Salary—Frank R. Hope, of
represents a merger
Shore Public Service
FIRM
Townsend, Graff & Co.
number of dealers
appears to be having a
large
■j/P
-
Committee.
Trading over-the-counter in
Power & Light was recently
has
•'
PARTNERSHIP IN OUR
Chairman', of / the
r
Committee and
man
Utility Securities
ware
Herzenberg
•.
Committee.
Livingston Del afield, of Delafield & Delafield, who is Treas¬
urer of the organization was ap¬
Executive
Delaware Power &
Relations
■■■
•
■
HAVE BEEN ADMITTED TO GENERAL
head
also
•
>
M.
pointed
Public
will
Paine
'■
■'
.
,
.
the merger,
given /to im¬
benefits arising from
and
effect was
no
resulting
from special deductions in con¬
nection
with
refunding of the
bonds and preferred stock.
Also
they were after deducting 14 cents
"amortization
of
electric
and
common plant acquisition adjust¬
ments," though ■}, this
does not
represent a cash outlay.
Later
interim figures on the new basis
are not yet available,
but should
be forthcoming in a few weeks
(the September figures based on
the
old
set-up
were
released
about Nov. 5). '■■■'V'f
All of the common stock of the
merged
company
is
held
by
savings
tax
mediate
,
Improvement, and in
line with that company's dissolu¬
Gas
United
tion
program,
nounced:: that
it recently
1,120,600
of
an¬
the
of * Delaware
1,162,600
shares
would
distributed
to
its own
stockholders in. the ratio
of 1 for
be
up"'-for. that stock.
United
Corp.,
as
in
stockholder
U.
:■
.
the largest
I., will re¬
G.
303,311 shares or 26.09% of
It is anticipated
ceive
Delaware's stock.
that Delaware may pay
on
dividends
basis—possibly $1 a
liberal
a
share, in view of the earnings of
about $1.22 before plant amortiza¬
tion, and the substantial Federal
tax savings anticipated as a result
of the 1943 financing. ;
The
cash
should
company
the
ance
pro
excellent as
sheet for May 31
showed
new
bal¬
forma consolidated
fect to the
and
be
the
of
position
(giving ef¬
financing and merger)
total
total
cash
current
of
Service companies
Maryland and Virginia companies
were
not) contribute only about
of total
10%
system revenues.'
about
81% of revenues and gas 19%,
while ice and cold storage bring
in
•
$2,436,051
accrued
assets
sizable
amount. A A
small
a
part of -the company's electric and
iA purhased 'from
Philadelphia Electric, which until
recently was a U. G. I. subsidiary.
The
ratio
of
depreciation" and
*as
output
-
•
maintenance
to
revenues
gross,
(less purchased power and gas) Is
18%.
the
At
current
around
price,
1414, the stock is .selling at about
11.6
times
the
earnings before
amortization of plant
with a yield
possible
of about 7% based on the
$1
dividend
Electric,
Philadelphia
rate.
paying
the
current
$1.20,
first traded
based
on
quarterly
rate, re¬
cently sold as high as 22, having
advanced
substantially
since
it
on
a
yield
basis
issued
when
months
over-the-counter
ago.
On
basis —assuming
forecast
of";
a
that
Light
priced around 19. Both
companies have
stock
the
$1 dividend rate is
correct—Delaware Power &
would be
few
a
similar 54/2%.
a
basis
in
a
broad common
relation
to
total
McKenna Partner
N.
preference
stock
common)-,
which
market
most
as
standards
well
under
is
as
the
current
usually
the
important factor in investors'
j appraisal of a utility operating
company
common
stock.
J
I
t
In
Go.
Reynplds
was
will
Common Stock
field
120 Broadway
general partner of^Reynolds &
Co., 120 Broadway, New York
City, members New York Stock
a
Exchange.
Mr.
■
?
McKenna
■
.
general
a
was
partner of Eastman, Dillon & Co.
until October 1940.; He was the
first
Divisions
Publishing
&
Printing
Paper
of the Pulp
director
of the War Production Board
instituted the
planning which
location
come
after
chief
so
useful
has be¬
Shortly
he
became
and
Production
the
of
today.
Harbor
Pearl
and
pulp and paper al¬
Branch of the Motor
Service of the U. S.
Scheduling
Transport
Army. *
j!
t
Mr. McKenna will be
investment
a
general
of
partner
banking
Reynolds & Co., in' charge of
brokerage and retail distribution
departments.
Mr.
MacKenna's admission to
partnership in the firm was pre¬
viously reported in the Financial
Chronicle
of
December Y3.
^
,
ciated
Edward
ILL.—S.
CHICAGO,
with
has
become asso¬
Straus
Securities
135 South La Salle, in
Company,
grading
department,
spe¬
ment
for
the
of
trading
Weinress
&
Cd>
depart¬
Y.
Watts & Hinchman
Willi
Snyder, 100 Broad¬
way, New York City, members of
the New York Stock and Curb
&
Ingalls
Exchanges, announce that Samuel
H. Watts and Ralph P. Hinchman,
Jr., have been admitted to part¬
nership in their firm and that
Waldo P. Clement, Jr., and H. C.
Westendorf
with
are
them. "
Hinchman
were
associated
now
Mr.
Watts
Mr.
and
formerly partners
of the dissolved firm of Fellowes,
Davis
&.
Co.,
with
Mr.
which
Clement and Mr. Westendorf were
Herzfeld
&
Stern, 30 Broad
Street, .New York City, members
of the New York Stock
Exchange
since 1880, announce that Edwin
Wolff has joined its organization
to handle inactive and guaranteed
railroad
Mr.
telephone number has
been changed fo Cortlandt 7-6800.
their
&
Co,
inactive
as
situation
Indiana, Inc.,
possibilities, ac¬
cording to a circular being dis¬
tributed by Edward D. Jones &
Co., 300 North Fourth Street, St.
Louis, Mo., members of the New
of
the
miscellane¬
securities
ous
departments, and
prior to that/headed
firm, Edwin Wolff & Co.
own
The
firm
also
the
announced
opening of ajbranch office at 50O
Fifth
&
in Public
and
1940
Steiner,
manager
railroad
Avenue
under
the
joint
Isak D. Spiegel,
Hirsch, Lilienthal
Co., and Harry A. Kuffler, in
management
The current
Since
been with
for 28 years
Ingalls & Snyder also announce
that
securities.
Wolff has
Rouse
his
also connected.
Herzfeld & Stern !
Opens New Branch
of
with
formerly
With Straus Securities
.
Edwin Wolff Is How
Situation Of Interest
Dawson-Smith
New York 5, N
Ingalls-Snyder Admit
-
S. Edw. Dawson-Smith
//v:
York Security Dealers Association
■■j,-,Members New
January 1, when he.Twill become
Wall Street since 1908.
Service Company of
offers interesting
York
and
St.
Louis
Ex¬
Stock
other leading Ex¬
Copies of this circular
may be obtained from Edward D.
Jones & Co. upon request. '
changes
and
changes.
linn—
'A
r
—
N. Y.
The
Analysts To Meet
York
Society
of
Security Analysts will hear H. F..
Wyeth
New
of
Southern
eon
Shields
Pacific
&
at
Co.
their
on
the
lunch¬
meeting to be held on Jan. 7.
Jan.
10, Wilson Wright,
for
the
Armstrong
On
economist
Cork Company will speak on the
"Introduction
of
New
Products."
.
All
Pixies In The Proxies
Brady & Go, Formed
In Hew York City
Michael J.
Brady and Frank M.
Cryan have formed Brady & Co.
Bear. Stearns
&
Co.
with
offices
New
York
securities
Members New York Stock Exchanse
.
at
City,
49
to
business.
Street,
in a
Mr. Cryan
Wall
engage
formerly an officer of Barrett,
Uerrick & Co., Inc., with which
was
C. E. DE WlLLERS & Co.
to
on
Broad
meetings
are
held "at
Str.eet, at 12:30 p.m.
56
.
,,
Bought—Sold—Quoted
NEW YORK
■
MANAGER OF OUR TRADING DEPARTMENT
return
banking
investment
manager
Public Service Co. oj- Colorado
as
a
McKenna
A;
bert
the
• 1
i
us
period in which he
engaged in war service, Nor-
Following
cializing in real estate securities,
Mr. Dawson-Smith was formerly
il
/ Formerly with S. H. lunger Co. j
.
has become associated with
their
A
/
capital—Delaware 49% and Phila¬
delphia 46% "(including the new
pleasure in announcing that
MR. SAMUEL WEINBERG
contributes
Electricity,
We take
Clark, Dodge & Co.
(the Delaware
Company was merged, while the
was
2, on or about May 22, 1944, fol¬
lowing a 10-for-l "reverse split-
Public
Shore
Eastern
three
the
CHICAGO
Mr. Brady was
also associated.
Eastern
100
Sixth
Corporation,
Avenue, New
York
Printing
Interesting Data
is distributing an Interest¬
Vilas & Hickey, 49 Wall Street,
ing and informative leaflet by
New York C\ty, members of the
Andrew F, Gibson entitled "Pix¬
New York Stock Exchange, have
ies in the Proxies." This leaflet
discusses recent trends, the an¬ prepared an interesting abstract
from the opinion of Judge Hincks
nual report, proxy material and
on the New
York, New Haven &
delayed meetings briefly but com¬
City,
prehensively. Copies may be had
upon
request frorh the Eastern
Printing Corporation.
.>
...
.
Hartford
Secured
6s.
Copies
of
this abstract may be had from the
firm upon request.
Volume ,159
THE COMMERCIAL £ FINANCIAL CHRONICLE
Number 4244
65
ADVERTISEMENT
NOTE—From time to time, in this
space,
there wilt appear an
We regret to announce
PLEASURE THAT
WE ANNOUNCE WITH
article which we hope
of interest to our fellow Americans,
This is number fourteen of a series.
will be
that
SCHENLEY
mil frank altscbul
DISTILLERS
CORP.,
NEW YORK
MR. C. GERARD MORGAN, JR.
has retired from
/,
.
"
.
AND
firrii.
our
'
.
"An Old American Custom'
MR. WALTER C. POHLHAUS
•
.
■
•
'
'
..
:
: '
■
;
.
r
•.••• '"
v.-
We wish
•
_
that
to announce
A friend of mine,
WHO
HAVE BEEN
HAVE
GENERAL
US FOR
ASSOCIATED WITH
MANX YEARS
a
most
mr. andre me yer
PARTNERSHIP AS OF JANUARY
a
1, 1944
mr, wm. howard sciiubart
interesting hobby. For many
years
ADMITTED TO
BEEN
the head of
prominent advertising agency, has
mr* pierre david-weill
he has been collecting topical
advertisements
of
;
MACKUBIN, LEGG 8e COMPANY
^
■
have been admitted
as
general partners.
NEW YORK
other
friend's
Lazard Freiies
can
&
Co.
look
planning
periods that have passed.
The
day I had the
fortune to take
BALTIMORE
that he
so
back at the thinking and the
mr. albert j. hettinger, jk,
peek at
a
one
good
of
my
scrapbooks. What wealth I
discovered!
Here
New York, December 31,1943,
of
full-page advertisement
was a
local committee of
a
known relief
a
nationally
organization, in
a
New
York newspaper on September 6,1923
just
...
We take
pleasure in
announcing
■
•
few months
over
twenty
Here is the first para¬
>
graph:—
the admission of
We
are
pleased
to announce that
; i
.
THE CITIZENS CF
"TO
GREATER NEW YORK"
D. Frederick Barton
"'One of the greatest disasters
and
has this
Jokn F. Power
day been admitted
as a
as
a
years ago.
in
history has falleni swiftly on a
large section of the Japanese
nation. Earthquake and fire have
to our firm
General Partner.
destroyed their homes and stores,
General Partners of this firm.
obliterated their communication
-
transportation, and have left
and
LEHMAN BROTHERS
the
Eastman, Dillon
MEMBERS
NEW
YORK STOCK
Co.
&
living helpless in a scarred
and seared land. They are in
V;;;"-/Hi
January
3,1944
stark need, and
EXCHANGE
unless relief in
tremendous volume is hurried to
15 Broad Street, Hew
Chicago
Philadelphia
January 1, 1944,
Reading
>
,
York 5, ^N. Y.
•
lenge—NOW or NEVER! To do so
requires courage. And imagina¬
Hartford
Paterson
Easton
tion!
X
It
spirit
demands
return
a
of venture.
to
challenge
few, however
powerful they may be. It requires
concerted action along the whole
The
Challenge
all-out
has
(Continued from first page)
tooling
for
post-war
methods,
involves an expenditure of about
$500,000,000 "to help preserve the
free - competitive enterprise sys¬
tem as the keystone of the-Ameri¬
can
economy,"
Mr. Sloan said
type of economic responsibil¬
ity as affecting the security and
social progress of our people. It
It
effort—an
taken
duction
ent
front.
place
front
calls
effort
along
which
for
an
such
the
pro¬
make
possible the ultimate winning of
the war. If such a challenge is met
it
exchange their
for
a
proper
time
must be
civilization.
our
on
no
3, International
relationships ir
the economic sphere on the basis
of a "two-way" street.
concerned tonight primar¬
with the first—the problem
of jobs. There is, I believe, much
confusion in the thinking on this
subject. It should be clarified,
dramatic
Declaring that
opportunities are
cal
economic
and
■
added
"must"
in
the
new
that
a
direct
Government
tween
viewed
expanding job against the background of the
social, politi¬ momentous problems that we face
things to produce
and by producing existing things
at lower prices, at the same time,
warning that unless this is done
the
people
"will
demand
of
Government through political ac¬
tion
what
they cannot
obtain
through private enterprise." He
;
when
a
post-war era, Mr. Sloan stated that
these, must. be provided by de¬
veloping
intensity
conflict be¬
in
business
is in relation to this
broader phase of industrial lead¬
ership that I speak to you at this
today.
It
time.
a
statesmanship
vital
part
of
has
business
of
the
millions
Through evolution it has reached
the point where it now important¬
ly influences the always changing
pattern of the economy. It is not
an exaggeration to say that under
existing
circumstances
it
may
who, in well determine the fundamentals
in far-off of the
pattern itself, The greatly
fields of combat, are prepared to
involved problems that arise as we
sacrifice their all, and in the in¬
pass
from a war to a peace
serving
our
country
wider. front and private terest of the tens of millions who
economy, the highly volatile; for¬
enterprise "would mark ! the be¬ are supporting such efforts by
ces
that will exist during
the
ginning Of the end-—the end of carrying on so effectively their
transition and the great uncer¬
along
a
the American
competitive system appointed tasks
at
home.
When
tainties involving the longer term
the begin¬ the war. is finally over, the cry
position to follow—all bring that
ning of the socialization of enter¬ from these many millions of the
fact into bold relief. It is in per¬
most
prise." 1
aggresive
and productive iods of
great adjustment and rapid
Mr. Sloan predicted an upward elements of our people will be for
evolution that the prevailing for¬
spiral of business activity after an
opportunity of accomplish¬ ces
develop the maximum effect.
the process
of reconversion is ment.. A chance to live and to
For then all is in a state of flux.
completed but cautioned that in progress and to avoid, above all,
The dangers are then the greatest;
the period of shortages some tem¬ becoming an object of charity.
the! Opportunity! for constructive
porary
controls must be main¬
Here is a challenge to each of
accomplishment
the
most
fartained "to control the inflationary us
individually. It is also a coir reaching; the necessity of intel¬
influences" and be kept in force
lective
challenge to all of us ligent cooperation the most essen¬
"until production develops a bet¬ here
tonight—representing as we tial. Leadership under such cir¬
ter balance and the law of supply do
a
broad cross-section of the cumstances demands
courage, im¬
and demand can operate freely
leadership of American enter¬ agination and faith, These are the
again."
prise,
The
challenge
presents circumstances as they hppear to¬
The full text of Mr. Sloan's ad¬ what I believe to
be, an oppor¬ day, as we look forward into to¬
dress follows:
tunity—an opportunity to capital¬ morrow.
I appreciate the honor of again ize in the long-term interests of
I believe there are three clearly
the country 9s a whole a set of defined "musts" the attainment of
appearing before you this evening.
Some eight
circumstances that in all probabil¬ which
years ago
we,dis¬
would
go
a
long way
cussed the then developing de¬ ity will develop out of the war. toward
insuring; our winning the
mand for the acceptance/ by our This set of circumstances cannot
peace and making certain,that the
industrial leadership, of a differ¬ repeat itself. We accept the chal- sacrifices
being made in winning
as
we
have known it,
,
result
of
certain
definite
forces
put into motion. They result from
a combination of Capital, manage¬
leadership. It assumes increasing
ment and opportunity. The cat¬
importance and at an accelerating
is a possible profit. The
rate as the economic system be¬ alyst
foundation is confidence in the
comes more and more intensified.
■■
Tonight I offer a definite pro¬
posal. It takes the form of a chal¬
lenge. This challenge is presented
least importantly in our own selfinterest; but most importantly on
behalf
Economic
become
future of
enterprise as determined
national
economic
policy.
Without these ingredients there
by
can
be
no
jobs in a free
economy
Expanding job opportunities
are
social, 'political
United
it
in
States,
en¬
with
plenty, quickly
should do her full share."
Needless
remind
to
millions of dollars
sent to
am
difficult to foresee.
the
task
world's
the
dowed
World War III,
re-establish, in a funda¬
had become clear that American
mental way, free and competitive
business leadership must superj
enterprise as the pattern of the
impose upon its normal functions
American economy for the longthis plan was based upon an ex¬ a broader philosophy of manage¬
term position ahead. Failure will Some think that the number of
pected post-war national income ment-—one that must take the
involve uncertainty and lack of jobs can be determined in the
of $100,000,000,000, as against a form of economic statesmanship.
abstract by some arbitrary meth¬
confidence with
an.
end
result
Such a concept stands out with
pre-war income of about $70,000,od.
That is not so!
Jobs are a
not
000,000.
which
There
tremendous that
so
becomes
2, Means to prevent further at¬
tacks
is
them
and
wage.
ily
will
from hunger, thirst and
sickness. The task of succoring
1, Jobs for those who are will¬
ing to
I
perish by thou¬
sands
talents
as
will
them they must
will not be in vain. They
war
are:
the
The
cannot be met by a
economic
the
•
that
you
raised and
were
Japan to assist in relieving her
distress.
Almost twenty years
later, to show
of the most das¬
her gratitude, one
tardly acts of depredation was com¬
mitted by Japan at
while her
meeting with
For this she will he
nation has
as no
were
State Departmeht
our
in Washington.
punished
Pearl Harbor
grinning ambassadors
punished before
.
.
.
ever
been
the punishment
will fit the crime! In other words-—
plain English words—we
lick the tar out of her in
will
never
are
going to
a manner
she
forget! And while doing it
her skies will be emblazoned by her
fires with the
own
and, economic
"must" in the post-war era. The
evidence of that is clear. We must
The years
livid word—
one
REMEMBER!
a
that
recognize
doing so.
demand. And ir.
must bear in miqd
that the sole instrumentality by
which
we
it
be
can
is
met
in
a
free
virile and expanding
system of enterprise.
economy
a
Our
productive plant has in¬
creased actually and potentially
as a result of wartime. expansion:
The problem of providing jobs
will be greater in the post-war
period. And before the war the
problem had not been solved. In¬
creasing
technical
efficiency
means
we
must provide an in¬
creasing number of job opportun¬
ities, apd in two ways: We must
develop new things to produce.
We must produce existing things
at
lower
prices.
there
are
stead
qf
If
we
do
not,
Time, the
great healer, will do his work; towns
and cities and nations will be rebuilt
because progress can
it cannot be
tions,
we
be retarded, but
stopped. New genera¬
hope, will have
new,
whole¬
philosophies; but hurricanes
earthquakes and holocausts will
some
and
come
again. And when they come,
and where they come,
difference.
will make
V"..
no
■
America will always
answer
the
appeal for help, because that's
,
AN OLD AMERICAN CUSTOM.
.
P.S.
Now!
•
<
.
*
.
But, let's Uck Japan first—
Buy War Bonds and Hold
Them!
jobs available as
by, This must NOT
Id
more
happen. If it should, our people,
having in mind their war experi¬
ence of high employment,
gener¬
pay
go on.
certain to be fewer in¬
the years go
ous
•
will
rolls and other manifest
benefits, will demand of Govern(Continued on page 67)
•
yc
talning the first ten articles in this series?
Just write your name and address oh the
hack of a penny postal and send it to me,
care
350
of Schenley Distillers Corporation,
Fifth Avenue, New York 1, N. Y.
the asking.
it's yours for
MARK
of Schenley
MERIT
Distillers Corp.
THE COMMERCIAL&
66
We
:
-
-
,^
,
'
in
MR. JOHN BUTLER
G.
M.
P.
FREDERIC H.
000v FIRST ////
Departments at-
;-:i''
.'00
MURPHY & CO.
HATCH & CO., INC.
"
Since'
v:
,
0 CERTIFICATES
in charge of our
Bank Stock Trading.
0000
'0
Wall
6-7
WHitehall ' 3-0782
Boston
■
•
Post
1Q
Street
HUBbard
,
135
S.
LOUIS,
ST.
LOS
FRANCISCO
TELEPHONES.
Enterprise 6011
•.W:. PROVIDENCE,
Enterprise ' 7008
7008
and other Title
[Offerings
.
v.00
-:r"_
This Week—"Insurance Stocks
Bj E. A. VAN DEI'SEN
Trust
issue
recent
a
0
.
records in Washington
in different plants to
planes and engines. The differences in efficiency are almost in:
credible. (Bold face ours),
Mariy plants produce several times as
much
worker
per
as
products." '
making the same
j '
Bank and
manufacturing wide differences iri
and
efficiency
economy
formity
one
Inquiries invited in all
Laird, Bissell & Meeds
if
we
the marginal
ignore
pro¬
become perfected
Nevertheless,
are
differences
speaking,
ly-
standardized.
and
even
here
there
sufficiently great to deserve the
notice of the prudent and dis¬
^;,0>0,
cerning investor.
An
interesting
example
of
a
mature American industry
is fire
whose history dates
back to
the days of Benjamin
Franklin.
Here is an industry
j a rich heritage of experi¬
ence,! soundly financed, success¬
fully ; operated and, withal, one
that
has
attracted
to
it
of
Exchange.
Telephone: BArclay 7-3500
Bell
Teletype—NY 1-1248-49
Trading Department)
L. A. Gibbs, Manager
one
another. Manage¬
company as
is
ment
something of
an
intan¬
gible and is not always easy to
appraise, but over the long term
the comparative results of man¬
agement in the operation of a
business can be measured statis¬
Sometimes, however, the
relatively poor showing of a com¬
tically.
due to factors be¬
yond management's control. :
,
may
pany
It is
insurance,
with
Stock
York
New
Members
120 BROADWAY, NEW YORK 5, N. Y.
possible. In the more mature in¬
dustries,^however, such extreme
differences do not usually exists
ducers, since manufacturing and
operating procedure has, relative¬
few
be
now
of interest to
statistical
tests
apply
to .the
a
man¬
agements of representative - stock
fire
insurance
companies.
As
"guinea
pigs,"
we
selected
have
companies .having
21 well known
business age of ap¬
the best minds in America and proximately 100 years; they there¬
has, built up a well integrated and fore can be considered as mature
thoroughly capable organization. and well seasoned representatives
Yet it would be
sume
a
some
mistake to
as¬
that all companies, even the
top ranking companies, are man¬
aged with equal efficiency and
?
:';4
•
.
,
•' v;0 •"
f
:
' ..V.-.'-
0
;'..f0, V'\'v
HAnover 2-2100
)
.
Experts Bullish For Post-War Real Estate
0 According to Glenwood J. Sherrard, President of the American
'Hotel Association, hotel [facilities will continue to be taxed to the
"utmost for at least a year or two after our, victory over-the Axis
is achieved.
powers
Hotels, not only will be called upon to hou$e
.
and feed members of our armed forces returning to their homes, but
also must accommodate the millions of war workers going to their
peacetime homes, he said. In ad-<& ;00,r'■,■.
the - almost 0 immediate of the largest real estate firms in
dition,;;
scramble for the re-establishment
civilian business by
larige ; industrial companies will
bring/ into existence "a greater
over-all measure.of management's than ever army of traveling sales¬
men—the group that in peacetime
operating results Which serves as
a
useful test:
The average an-» always „ is the backlong of. the
nual return
capital
on
and
sur-i
plus of the 21 companies, over the
of 1 normal
.
business",
hotel
American
-
New York.
;
Assuming
:
estate bonds
he
j
is
correct, real
commercial build¬
on
ings should" benefit considerably,
especially those with present! va¬
cant
stores.
For example,1 165
Broadway has about $50,000 worth
Mr, of store vacancies and 61 Broad¬
Sherrard stated.-- The end of war¬
time travel restrictions also will
way
has
a
store vacant that used
to rent for $100,000 a year. ■ 000'.
highest
enable the general public to start,
A new "yardstick" for measur¬
average- return
was. 9.4%
for
" ing the value of real estate bonds
Home, and the lowest, 4.6% for again "going places".
V If Mr. SherrarcLis correct, hotel is the recent -.announcement;[ that
Phoenix.
"
0
Home
that
reason
shows
an
average
of the
relatively high return on
a
the
to
marked difference in
the
Unlisted Issues
im¬
is
performance
of
32 BROADWAY
capital and surplus, and Phoenix
such a relatively low return, vis
plant
Thus, uni¬
IANICE&Cdl
due
of war needs. Its manu¬
processes and methods
have not yet become standard¬
ized but, on the contrary, are in a
state of continuing change and
in another.
•
-
urgency
and then
/;'00'';0;000v:'
•
such
facturing"
improvement, first in
request 0?
on-
Stocks
rapid expansion
industry by \ thd
the
on
;
Insurance
uhder
the conditions of
forced
sent
0'0v0000
The
are' un-j
particularly
derstandable,
•
-
industry of aircraft
In the new
Companies
five years; was. 7.0%; the
others £
do
■
,
New York.4
.
appeared the following statement: ""There are
showing the numbers of man-hours required
produce thfe same sorts of ships and weapons,
Company,
0
■ .■
0= ■■■ New York: 4, N. Y. • 00A
Telephone: DIgby 4-6886
of The Cleveland
of the "Business Bulletin"
Broad Street,
\
and Insurance Stocks 0
In
0
i t
'
-
'■
vU
Mortgage Co.
00:0,/00./''''
TO
PORTLAND,
Enterprise
,,
Members New York Security Dealers Association
...
41
BOSTON, CHICAGO*,
AND SEATTLE -
NEW YORK,
CONNECTING:
ANGELES,- SAN
HARTFORD,
.
."000'
CG-105
SYSTEM
WIRE
PRIVATE
N. Y. Title &
7535
FRanklin
0:.-
0650
NY 1-2875
;
Lawyers Title & Guaranty Co.
Chicago 3
La Salle Street
9
Office i Square
•(-•' v
. c.
Lawyers Mortgage Co. 000;;
Huff, Geyer & Hecht
;
'
Incorporated
....
York 5
'
.0 .; 'u
1 nhotlfin
Culicrmsin
001
isst;ed by
Title Guarantee & Trust Col
New
1929
J
MORTGAGE
,
»•-
has become associated with us,
0
Estate Securities
,
formerly in charge of Bank Stock
■{.i,^'\51:^hiiMiy^Janua^6>:^944
SPECIALISTS
WE BUY
pleased to announce that
are
FINANCIAL.CHRONICLE5
The period cov¬
ending
T7;
0 0"', •'
' ■
"leverage" supplied by the
unearned premium reserves.
The
average for the 21 companies over
the five years is 44 cents of un¬
earned premium reserves per dol¬
lar
of capital and surplus; for
Home
the
average
leverage is
86 cents, while for Phoenix it is
only 18 cents. This fact also serves
to explain why the market prices
of some stocks are high in relation
to liquidating
value and others
low.
Currently,
for
example;
Home is selling 28% above liqui¬
dating value, while Phoenix * is
selling
8%
below
liquidating
.
value.
00;' 00000
.
•0000000
The market,
therefore, in an ap¬
proximate fashion,
attempts
a
continuing appraisal of the many
variable
up
factors
that
go
to make
the composite intrinsic worth
of the
stock
In
company.
of
a
a
fire
insurance
subsequent article
hohds should appreciate consider¬
an
..
bonds
'
69.
sold at
Last
Sunday, Charles F. Noyes,
predicted that when the war ends,
New York City will be in a unique
position to capitalize upon
its |
dominant
greatest
status
TRADING
America's
as
financial
appreciation
dends.'. 0,<
plus
divi¬
.00.0/00 '0.:.070";70'
MARKETS IN
and
REAL ESTATE
leader in the
peacetime goods
SECURITIES
seaport,
*
aviation center, as a
production
and
as
a
of
world's
center
of
art,
a
tabulation
will be
presented music, entertainment and fashion.
showing the investor's gain over After the war, he stated that there
the five year period for each of will be an immediate increase in
the 21 stocks, as measured by store rentals and that vacancies
market
unusual amount of sales of real
Capacity business estate took place in New York
of; the past couple of years has during the year of 1943 and i that
enabled
many
hotels' to make the sales averaged 69% of the as¬
large interest payments and in ad¬ sessed valuation. For instancef, the
dition to operate sinking funds. property at 61 Broadway is as¬
Retirement
of
bonds of course sessed at $8,075,000.
First mort¬
gives; the bondholder the advan¬ gage bonds outstanding amount to
tage of a participation in a smaller $7,927,000, but the bonds are only
mortgage with the hope that if selling at 27%: of face' value,
the mortgage is reduced consider¬ which places a value of only $2,ably, it might some day be re¬ 140,290 on the entire first mort¬
funded with an institution loan. gage against $5,571,750 arrived at
Such a refunding would result in by taking 69%
of the assessed
a pay off of bonds, which are cur¬
value. This is only one example
rently selling at large discounts. of how very cheap indeed real
An example of this is the Syracuse
estate. bonds. are. .;
v0/yr0h *'<l
Hotel which paid off its bonds at
par
two years after the same
ably in value.
will be all taken up.
His
opinion
as
Msmbarj New York Stock
Members New York
V.-00' '.v-
should ' be
spected, inasmuch
SHASKAN & CO.
he heads
40 EXCHANGE PL.,N.Y,
Bell
re¬
Exchange
-1-
Curb Exchange
DIgby 4-4950
teletype NY 1-953
,
one
industry.
ered is for the five years
with 1942.
The first test will be
economy,
and that an investor operating ratios,
would therefore fare as well in'
ages, as follows:
five
made
year
on
aver-
Firm lame Is Now
of
OUR
Riley & Co., lac.
402 %
preferred
of the
stock
Firestone Tire & Rubber Co.
REPORTER'S
Stockholders
thorized
a
last
new
month
preferred
au¬
issue
MILWAUKEE, WIS.—W. Thurin the amount of $60,000,000,
man
Riley, President- and Treas¬
Average of 21
Best
Worst
But the company will sell at this
Combined loss and expense
96.8% 0
*93.3% V
11100.1%
urer, has announced the change
Expenses incurred to, premiums
time only a sufficient amount to
44.9
t41.5
^
§48.5
in firm name, from Dalton, Riley
Losses incurred to premiums
earned__0__
51.9
$48.3
054.7;
provide for the retirement of
& Co., Inc., to Riley & Company,
The next week promises to be
Continental.
tFidelity Phenix. • tPhoenix.
liHanover.
§New Hampshire.
the outstanding 6%
preferred
effective Dec. 31, 1943.
Charles the busiest period for the under¬
stock. :• ,/■; ;
The next test is on Net Under¬ Franklin
Fire
and
the
lowest F. Jacobson continues as Secre¬ writing world in several months
'■ y':;
The balance will be held avail¬
writing Profits, expressed as a average is
3.6%
for
Phoenix. tary of the company, and the ad¬ and very likely will clean up new
able for future needs of the com¬
From this we observe that those ditional
percentage of Earned; Premiums,
personnel remains the issue
business
immediately
in
five
The firm will retain its sight
year
averages,
as follows: companies which produce the best same.
' 0
until after
the Treasury pany as these arise.
Average of 21 companies: 3.20%; underwriting results do not neces¬ present quarters in the First Wis¬ -completes its Fourth War Loan
best average, Continental: 6.70%; sarily produce the highest invest¬ consin National/ Bank' Building,
Two Groups Seek Florida's
Drive, scheduled to get under way
worst average, Hanover:—0.47%. ment
return
on
capital funds. Milwaukee/and will continue to on Jan.: 18.
Two banking groups now loom
;"-0v0
These two tests show that, so far Continental,
for. example, with operate its branch office in Wis¬
as bidders for the $55,000,000 new
It leaks now as though in¬
as
underwriting operations are the top figure of 6.7% on Earned consin Rapids; with the same man¬
securities of the Florida Power &
vestors wEl get the opportunity
concerned, Continental has the Premiums shows an investment ager, Sam W. Howard. \
: Light Co., for which the company
to participate in offerings in¬
best record over the five years, income return on capital and sur¬
The firm deals in both listed
will open bids on Monday.
volving an aggregate of $126,while Hanover has the poorest plus of 6.2%
and
unlisted investment securi¬
; Franklin, with* the
006,000 of
new
securities, a
This
financing,
which
has
record.
specializing in
Wisconsin
top figure of 8.3% investment re¬ ties,
public utility issue, an indus¬
been in process of preparation
on
We now turn our attention to turn
capital
and
surplus, issues.
trial preferred stock and a rev¬
for a considerable time, involves
Mr. Riley, who has been active
Net Investment Income, measured showed only, 2.6% of underwrit¬
enue bond issue of the Puerto
the sale of $45,000,000 of new
in investment circles in Milwau¬
against capital and surplus and ing profits on Earned Premiums.
-
REPORT
,•
,
,
.
*
Rico
averaged
to
1942.
over
The
companies
the five
average
shows
turn of 5,6%
on
an
years
for
1938
the
annual
capital and
21
re¬
sur¬
plus;, the best average is 8.3% for
Total
Net
Operating
profits,
comprising net underwriting
profits
come,
of
plus
net
expressed
investment
as
a
in¬
percentage
Capital and Surplus/ gives
an
kee and Wisconsin since
one
of the
pany
has
in
past six
organizers of this
1932, and
been
1920,
with
years.
the
was
com¬
Mr. Jacobson
firrm for
the
ity.
Water
Resources
Author¬
Harriman
Co., Inc.,
will head a large banking group
which is, slated to offer publicly
on
Monday
1st
mortgage
1,
Oct.
..
Ripley
an
&
issue of $45,000,000
1971,
bonds to
along
mature
with
$10,-
000,000 of sinking fund deben¬
to mature Oct. 1, 1956,
140,000 shares of cumula-"
tures
and
."'0 (Continued
on page
79)'
.
Volume 159 '
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
reconversion is completed.
(Continued from page 65)
ment
political
action
obtain through
enterprise. 'Even though
through
what they cannot
private
it
is
the
provide
never
demand
be
that
clear.
if
solution,
a
would
nevertheless
That
made.
crystal
fact
It
this
that
perfectly evident
would
stands;.out
equally clear
is
to
depend upon
Government expenditures, or con¬
tinuous deficit spending, to main¬
tain and expand employment,and
we
were
>;
in
excess
of 100 billion dollars. A
Consumer indebtedness will have
peace,: - Government
to operate -in* a far
before. It
directly
private enterprise" in the
production of goods and services;
if any substantial support were
have
would
to
ever
compete
with
to
effected.
be
Here
arises
di¬
a
rect conflict between Government
in business
along a widened front
and private enterprise. It is in-!
herent in such. an approach. It
been
largely
liquidated.
The
of installment purchase
.
It
reasonably clear that
appears
of this enormous back¬
log of potential purchasing power,
upon
that
which
currently created in pro¬
ducing the goods to relieve con¬
shortages, should provide
the
means
for
raising,.the peace¬
activity to
time level of economic
a
point considerably in excess of
pre-war standard.
However,
the extent that the price level
any
to
is permitted to rise >; due to the
highly inflationary forces exist¬
ing, this possibility is prejudiced.
not
yet
_
war.
by
won
any
The
period of shortages
begins with the reconversion of
industry, and continues until the
law of supply and demand again
means.
Otherwise,, the objective of
economy
will be
importantly prejudiced.
.;
expanding
an
I
am
enter
ness
that
confident
an
we
are
to
upward spiral of busi¬
activity after the process of
..
,
we
of
The
start after
great
conse-
.
us
opportunity for,, accomplish¬
ment unparalleled both in magni¬
tude and scope in the history of
an
American
enterprise.
constitute
valid instrumentality
establish our national income,
to
a
expressed in general terms, per¬
manently on a substantially high¬
level
than
pre-war standards,
self-sustaining basis, in¬
suring a sound advancement in
our. standard .of
living with ex¬
panding job opportunities?
on
a
i':
Here is what I believe:
•
is-
siveness
in
business
of
Are
tant
we
management
taking the initiative and
ability to assume the risk
its
in
'
adopting such policies as to insure
maximum overall utili¬
zation of existing - economic re¬
not only a
.materials,
representing
section
of
impor¬
an
management
enterprise, prepared
leadership and
step up to this opportunity? Do
we believe in its
importance? Are
we willing
to take the risk? Do
exercise
our
consider
we
it
franchise
our
worth
worth
while?' Is
—
raw
man¬
and plant capacity,— but
also
an
expansion ' of such re¬
sources
to a level of production
power
a new
defending?
'
;
I
have
•
cations.
It
to
sems
the direction
me
clear
This, advertisement is neither
an
'
The
-
emphasized
fact that acceptance of the
challenge must take the form of
an all-out effort
along the whole
productive front. Some points are
vital
more
all
as
motivating centers
Only about 25% of
jobs needed to insure high em¬
than
others.
ployment are within the field of
manufacturing. Perhaps one-half
a
different policy—one demand¬
ing little imagination, aggressive¬
of
ness
risk—a
or.
its
take
policy of "let
course," in other
words. Is it not its essential to win
the peace, in an economic
sense,
as it is to win the
war, in a mili¬
this25%
constitutes
major,
motivating centers that stimulate
the
other
half
into
action
in
American
agriculture, distribution, trans¬
portation and services in general.
In
making this presentation,
busines leadership over the coun¬
try believes it is and will accept
the
challenge. We in General
and supplementing these conclu¬
sions, I realize that in the general
discussion as to what is tc\ happen
Motors believe it is and
after the
tary sense?
the
;;
I
sure
am
accept
we
This acceptance is based
both
conviction
as
and
faith.
upon
Con¬
to the fundamental val¬
idity of the opportunity/ and- as to
the
reasonableness
that
establishes
of
its
the
desire
objectives.
our
over
ing
that
to
the
problems
of
the
national economy—will have died
with the war. That our .people, as
several
such
years
of
to
nothing
living, we
to
stitute this balance. -V.y: /
First of all, the essential econ¬
omic forces for a rapidly expand¬
economic
burden
present and future
genera¬
tions,
an
and create automatically a
and lasting prosperity fQr
sound
all. Such reasoning does not make
There is a price that must
paid for such enormous eco¬
nomic
wastage. It means hard
of the war, have found
inspiration in an opportunity
to do something worth while and
sense.
to work for the
work, greater efficiency, and re¬
quires considerable time to over¬
result
a
an
I
believe
the
be
come
the. loses that
ated.
■
If
;
w.e
accept
What?
the
has
war
Rochester
challenge—>
.7;::
.•
Every business unit, large or
small, must study its post-war
problems from the standpoint of
its
own
individual circumstances.
This is particularly true
of small
offer to sell nor a solicitation of offers to buy any of these securities.
offering is made only by the Prospectus, • - •
•
Telephone Corporation
Common Stock
origin.
Such a state of apparent
prosperity will not be based on a
self-sustaining economy.' Modern
history records the fact that after
all big wars there follows a per¬
iod
of
great business
activity.
Only in duration and intensity
does the pattern vary. All the cir¬
cumstances point to a repetition
of this pattern at .the end of the
i
..*•
•
(110
Price
par
$15%
.*,**•
value)
f!
«• •_--y y. t<i
,
per
,
.
share;
present conflict, but on a greatly
intensified
has
tion
of
toward
No former
scale.
such
seen
war
great concentra¬
a
economic
Copies of the Prospectus may be obtainedfrom any of the
directed
forces
undersigned:
single objective and one
not in any way concerned with
the normal
peacetime needs of
the
a
Moreover, in the 25
the last conflict our
people.
since
years
productivity
not
panded,
has
enormously
only
in
volume but in variety.
->
ex¬
aggregate
In World
Union Securities
War I American industry was just
•
.
armistice.
it
verted.
The
The former
Practically
durable
.
.
.
>
.: White, Weld & Co.
{.
.
.
"'.tLW V4V.*sU
*\
'
I
Goldman, Sachs & Co.
Kidder, Peabody & Co.
already completely con¬
war
involved
Merrill
only a relatively short period—
already exceeded in the present
war.
Smith, Barney & Co.
Corporation
George D. B. Bonbright & Go.
conflict
present
•'
*J'.
preparing to change over to total
war production at the time of the
finds
The First Boston Corporation
a
no
goods such
as
Lynch,-Pierce, Fenner & Beane
.
consumer
F. S.
motorcars
electric refrigerators will have
been produced for several years.
Moseley & Co.
"
..
.
-
'
' '
.
Tucker, Anthony & Co.
Stone & Webster and Blodget
.
Incorporated
Sage, Rutty & Co., Inc.
or
It
is
clear
tential
that
an
demand
enormous
for
all
kinds
Lee
po¬
of
January
goods and services is developing.
Assuming
continues
1944, it is esti¬
wartime savings of
the
war
V-->
until the end of
mated
that
Little & Hopkins, Inc.
Higginson Corporation
CfiSBSSMfiSBB
4, ,1944
'
t->
cre¬
'
•'
380,0.00. Shares
ing peace economy as measured
by pre-war levels will be present.
But
they, will be synthetic in
our
cannot
balance,
;
creat¬
destruction
that
of.a.very, deli¬
importantly influ¬
enced by The psychology of the
immediate post-war period. Let
us identify
the factors that con¬
We
a
contribute
standard ; of
place
ap¬
realism.
large part of
and productive ef¬
instruments
upon
"rabbit-out-of-the-hat"
little
resources
fort
Faith that the economic panaceas
proach
there is far too much
cannot devote such
—the
>
war
Utopia—too
challenge.
will be the result
cate
and,
spread their influence throughout
all the other job-creating forces—
take a.t that time
we
..
already
the
becomes
operative, with purchas¬
ing power in balance with current
production. The problems of re¬
conversion,
generally
speaking,
are
non-recurring, they are of
vital importance
of themselves.
But they
are, I
submit, vastly
more important as to their impli¬
con¬
part of Government
Or do we prefer to
accept, on the
other hand, the evident dangers of
things, they want.
"something - for i*
nothing" • philosophy /has - passed.
This change is certain to reflect
possibilities commensurate .with itse.lf in new and different nation¬
the progressively higher income al/economic
policies that will
level desired. Second, a positive broaden the field of business op¬
or constructive attitude as to the
portunity. Perhaps our faith may
problems of business on the part not be .justified by future events.
of; Government,
expressed
in But let it be said it is only be¬
sound national economic policies, cause of this faith that we move
sources
the
on
ure.
:
the
of American
to
cept
in its relationship to business,
any*
such effort could but end in fail¬
Here is the challenge:
viction
possible, in an economic
sense,1 to achieve such an objec¬
tive. As to the probabilities,! the
answer
depends upon at least two
general factors: First, the aggres¬
It
-
destructive attitude of the last
decade.
nature
Here is the question: ffs.
Do the circumstances presented
er
The real
;
is
submit there lies ahead of
I
and
.
is
armistice
quence.
sumer
is one of the things we are fight¬
period before us, from an ing to avoid. But it would be far
point of view, com¬ better in my judgment to con¬
prises three main areas of time; tinue
price controls for a (limited
the duration, the period of short¬
time until we can establish this
ages and the long-term position
equilibrium between goods avail¬
beyond. Each carries its individu¬ able and
purchasing power. Such
al problems. As to the duration,
controls, however,' should be re¬
I should like to re-emphasize here
moved
at
the
earliest
possible
that first things always must come
date.
it
spiral might turn downward.
the impact
The
And
unemployment, the
ing power will have been refilled.
economic
first. We must first win the
iod of serious
distinguished from the negative forward. Without such
as
or
effec¬
tively and realistically and—most
the
V
,
solved
direction in which
problem of the period
cannot be avoided. And, no matter
of shortages will be to control the
how efficiently private business
inflationary
influences. (Unless
might be conducted, it could not some
temporary
controls
are
continue to exist. Such govern¬
maintained until production -de¬
mental policies would mark the
velops a better balance and the
beginning of the end—the end of law of supply and demand can
the American competitive system
operate freely again, the conse¬
as we have known it, the begin¬
quences may be truly disastrous.
ning of the socialization of enter- We all hate regimentation. That
prise.
not
are
reservoir
will be
of
transition
part of this will be important—promptly, on the part
in liquid assets—in banks, savings of both industry and Government,
and there results a prelonged per¬
deposits and war savings bonds,
times
have
/;
considerable
superimposed
broader way than
/.vlV'
,
individuals and businesses will be
to increase the national income in
would
•
But to
make this possible we must have
a foundation of public confidence.
If the problems incident to the
67
G
Let
business, which embraces in the
aggregate a major part of the
whole. Moreover, because of its
broad geographical distribution, it
acts as a stimulant spreading, its
influence
ness
is
That
of
the
free
start
We
the conviction
standards of na¬
passed with the
period itself.
Our in¬
productive capacity as a
nation, our broader distribution of
improved
add con¬
fidence.
Confidence in industrial
now
judgment, are the
components of
my
more
faith
ery.
only be listed briefly.
tion in General
the
Motors, including
the
conversion,
of
cost
important
They
confidence.
and
familiar
ready
ad¬
conse-
and
;
;V
^
in¬
obvious that the rules
is
It
dealing
are
There
be free to
the
also problems of
are
justify
within the
move
econ¬
Technological
efficiency
verted, of the disposition of gov¬ should be encouraged by some
ernment-owned .plants,^ machin-, form of tax advantage, having as
ery,
work in process and ma¬ its objective the more rapid turn¬
terials.' '"■'V
'■
v.<■•. over of instrumentalities of pro¬
t
Consideration must be given to duction. Extravagance of Govern¬
Ex¬
the release of material for en¬ ment should be eliminated.
of
clearance
be*
to
plants
omy.
con¬
cessive
business expense, and
a
as
serves
of
elimination
the
charges
decline.
WPA
problem that
has been given" too little
far
elimin-,
be
of stimulating
sake
economic
International
And may I add a
so
the
rela--
tionships must be on the basis of
a
"two-way" street. No world
;J ■
,
should
taxes
for
production through lower prices.
overtime
the demands for war
as
products
.
■
ated
the
at
Labor
specific consideration?. It is prac¬
the
of
expense
American taxpayer.
v
•
relationships
represent
probably the most urgent social,
economic
and
political question
tically certain that enterprise will
have to operate on the basis of a
affecting the entire home front
the opportunities of expan¬
sion of enterprise that may be
expected to develop, according to
present trends, as we pass into
the post-war period.
It must be the responsibility of
the management of private en¬
terprise to direct its planning and
as
to the latest standards of tech¬
volving
governmental economic part war and part peace economy
reasonable demand nology and retooling for post-war
policies relating to the period of following Victory in the European
on
the part of our people for an
products, there will be involved reconversion must be established theater of war. Plans should be
advanced order of things.
Our an
That is of prime import¬ made accordingly.
aggregate expenditure of ap¬ now.
enormous
public debt, the con¬
The major part of the essential
How otherwise can man¬
proximately $500,000,000. That is ance.
stantly increasing costs of Gov¬ the contribution we. are prepared
agement plan
aggressively and reconstruction of governmental
ernment, legitimate
and other¬ to make to help preserve the free
intelligently can be prepared to national policy in the period to
wise,
demand
a
greater1 vol¬
follow
reconversion
lies within
.-:v■*
competitive^-enterprise system as bet?
ume
of production and a high¬
The new ap¬
the
The financial considerations in¬ the tax structure.
keystone of the American
er
national income base. Other¬
must be different from
volved in the cancellation of gov¬ proach
economy.
wise, the burden of Government
contracts
should
be that prevailing in the pre-war
This might 4?e called a master ernmental
on enterprise, and on the individ¬
It must proceed on the
established. A proper selectivity period.
ual, will seriously prejudice the plan. But thq|intelligent admini¬
stration of any plan is fully as in cancellation of one contract as principle that lower rates will in¬
possibility of an expanding econ¬
crease dollar revenue by expand¬
important as the soundness of the against another with the objecomy.
ing.
the
productivity
of
the
—all
Capital should
tirely eliminated.
quence.
can
You are al¬
with some of them.
of present equipment
vancement
great
to
Here, in
such as manpower,
plant and machin¬
In terms of such a projec¬
capital
gains
should be
drastically reduced or, better, en¬
term-"
the .time of re¬
of
desired result.
organization,
tech¬
is
gineering development of post¬
war
products, to post-war re¬
production,
niques, the acceleration of our
technical
knowledge
resulting
from the stimulation of the war
conversion
to apply the essential
economic
statemanship and. the
detailed know-how to achieve thq
leadership
of
.he needed economic resources
creased
our
economic
To these I
'
pre-war
know-how,
those things
that
national
of
area
policies.
determines
and
base
operating
Faith
that must be done will be done in
the
opportunity, recognizing
that each item of necessity has a
different ' elasticity
of demand.
The result is a measure of the new
with
income
jectives,
the potential
of .reducing
five
to the soundness of
as
conception and the
social justice of its underlying ob¬
duction
the
approaclji:
the prewar
tional
is
conviction and faith.
upon
economic
its
new, on
thewexpanded pro¬
of
basis
is
CHALLENGE
THE
Conviction
both oldu and
services,
the
based
base of
each of bur products or
volume of
fundamental concept
Here
be a
vVe then determine'
necessarily different.
General Motors
that
should
Each busi¬
contribu¬
self-interest. Each
enterprise.
-
of
ance
of the same dollars
reasonable objective.
billion
100
everyhwere.
problem is
plan itself. To repeat, our accept¬
pre-war
a
as
circumstances, a new
war
must make its own
tion in its own
assume,
us
base, a national income of 65 to 70
billion dollars.
Under the post¬
Thursday, January 6, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
68
and
a
.
,
•
its
toward
resources
reducing to
the minimum the period of unem¬
ployment involved in the process
Orders
"■.■"X.i
-A":
reconversion.
of
should
released
be
promptly for the replenishment of
inventory required for the pro¬
duction of peacetime goods, now
tion is now levied against corpor¬
liquidated. Likewise, orders for
ate- enterprise: first, on corpora¬
stocks of supplies and parts while
tion
earnings
and, second, on
stockholders.
Some better way plants are being rehabilitated.
Orders
should
be
released
must be found.
Taxes on enter¬
promptly to modernize equipment
prise itself must be / drastically
in line with technological progress
reduced.
Taxes
oh
individuals
and to bring maintenance up to
must not be confiscatory from the
Double taxa¬
of revenue.
sources
^
Corn Exchange Bank
,
normal standards.
standpoint of prejudicing the in¬
centive to invest. To insure busi¬
Trust Company
taxes
expansion,
ness
should
Orders
released
be
(Continued on page 69)
long-
on
,
•
ESTABLISHED 1853
A Bank Statement that any
Man
Guaranty Trust Company of New York
or
Woman can£ Understand
■V-
as
December 31, 1943
of close of business
Deposits and Other Liabilities
are
«
»
•
a
$608,117,775.32
a
a
a
a
meet
this indebtedness
have:
we
,
Cash in Vaults and Due from Banks'
U. S. Government Securities
•*->"#
($60,188,896.05 pledged to
and for other purposes as
Other Securities
V
.
.
Loans and Discounts«
a
v
»
»
a
a
a
»
«
•
a
a
a
a
deposits
'
.•
r •
.
•
V "•
•
'
»
»
■
*
•
»
a
a
a
a
a
a
«
«
Securities
.
Receivable
.
a
a
«
■
14,986,618.51
a
a
.
•
a
.
"V
*
»
•
.
.
.
•
•
•
•
.......
•
*
.
«
•
.„
.
;
■
Mortgages,
,;j
«
»
»
•
:
■
8,481,089.12
1,654,511.52
34,440,36L60
Customers'Liability
on
Banking Houses.
a
a
•
Otlrnr Real Estate
a
.
a
a
V.
•
Accrued Interest Receivable
Other Assets.
.
.
.
.
.
■
I
a
a
a
I
a
a'
a
a
a
a
a
«
a
•
■
a
a
Acceptances
a
•
a -
■
a
«
a
a
a
a
a
a
a
a
a
«
a
a
a
a
a
a
-
a
a
a
«
a
»
a
a
a*
a
«
a
a
a
a
•
a
a
a
9,600,9o5.17
j
738,568.03
10,673,599.63
1
412,902.88
j
v
'
^
a
/.
.
97 689 69913
40,276,388.19
Other Real Estate
Meet Indebtedness,
to
a
■
a
a
a
■
a
»
1,613,424.75
Surplus Fund
..
.
Undivided Profits
'-289,975.42
•
aiaaaaaaaaaaaaaaa
.
•
•
•
•
•
•
•
.
•
•
•
•
♦
•
•
•
•
•
»
.
•
Total
31,391,853.78
Held for Investment
BOARD OF DIRECTORS
39.006,978.49
,
.
■
.
$ 3,456,733.08
•
2,149,561.21
WILLIAM G.
DUNHAM B. SHERER
C. WALTER NICHOLS
...
HERBERT J.
JOHN H; PHIPPS
Research Corporation
GEORGE DOUBLEDAY
Vice
President, United States
E. MYRON BULL
President, A. //. Bull & Co.,
Home Life Insur«
Inc.
EDMUND Q. TROWBRIDGE
Company
'^
JOHN R. McWILLIAM
First Vice President
DAVID G.WAKEMAN
Fire Insurance Company
ETHELBERT IDE LOW
cnee
»U;
Mills, Inc. J
■
s
in
Items
,
.
'•
j
Cl
,
Transit
penses,
'
Taxes, etc.
.
.
.
.
/
:
r
2,356,675.51
*
.
'
•
►
14,872,328.31
«
21,485,621 69
.
*
.
.
.
.
•
«
•
$3,243,371,511.86
Deposit Insurance Corporation.
pledged to qnaljiy lor
for other purposes.
includes the resources and liabilities of the English Branches as of
1943, French Branches as of October 31, 1942, and Belgiun Branch
This
Statement
26,
December
United States War Savings Bonds
and Stamps
are
on
as
of October
sale at alLoffices.
.——
!<S
«637,497,563.63 In tlie above Statement are
fiduciary powers, to secure
.
;
:
,
Exchange Safe Deposit Company operates vaults in 56 of
branches conveniently located throughout the City of New York.
'•
-
Diflerencein
Balances between Various Ofr
fiees Due to Different Statement
Dates of Foreign Branches .
.
Accounts Payable, Reserve for Ex-
The Corn
"
.
152,550.00
2,700,000.00
j;.
Sccuritie* carried at
the 74
96,896.00
'
.
,
with Foreign
Total Liabilities
Member Federal
'
Accept-
on
Foreign Bills
Branches and Net
-A
Treasurer, Livingston Worsted'
vv
\
Chairman, Ingersoll-Rand
Company ■] "
'
-
Chairman,
STURSBERG
as
arid
.Foreign Funds Borrowed . . .
Dividend Payable January 3,1944
W. R. Grace
& Company
Chairman, Nichols Engineer'
ing &
ances
HOLLO WAY
Vice President,
RALPH PETERS, JR.
President
■
^
1,307,171.87
$
Endorser
Liability
Vice President
*. ;/■,
~
.
•
-
Chairman
26,700,000.00
-
.
«
'
BRUNSON S. McCUTCHEN'
HENRY A. PATTEN
Drysdale & Company
, :
2,903,794,036.39
♦
.
.
Acceptances
.
....
Less: Own Acceptances'
/'
291,391,853.78
$
.
.....
.
.
$2,864,787,057.90
•
Deposits.
Federal Funds Purchased
Capital, $15,000,000.00; Surplus and Undivided Profits, $22,009,367.70
ROBERT A. DRYSDALE
v
170,000,000.00
•
.
Treasurer's Checks Outstanding
$ 37,009,367.70
$3,243,37.1 »511.86
.
$ <>0,000.000.00
.
.
931,342.13
.♦>
•
•
.
.
...
.
.
....
Capital Funds.
$645,127,143.02
Deposits
This Leaves
•
•
LIABILITIES
....
Total
Total
•
•
.
•
Total Resources
Capital
i
«•
Bank Buildings
First
__
0__
:
•
Real Estate Bonds and Mortgages
_
A
563,906,253.23
1,959,786,746.17
610, *81,083.0D
$
•
•
.
.
.
.
.
Accrued Interest and Accounts
required by law.)
.
a
•.
♦
$55,903,665.64
Stock of the Federal Reserve Bank
V 7,800,000.00
Other Securities and Obligations •
22,543,260.98
Credits Granted on Acceptances •
1,307,171.87
413,976,173.71
secure
,<
Bank, and
on
Public
$158,394,563.32
«
RESOURCES
■
Hand, in Federal Reserve
Due from Banks and Bankers .
U. S. Government Obligations
•
Loans and Bills Purchased
.
>
Cash
December 31,1943
'
(inclndes*$46,346,384.60 U. S. deposits)
To
Bush House, W. C. 2
Condensed Statement of Condition,
!^
Our
Madison Ave. at 60th St.
C. 3;
London: 11 Birchin Lane, E.
'
Condensed Statement
140 Broadway
Fifth Ave. at 44 th St.
n
V
r
public moneys as required by law, and
31, 1941.,
Member Federal Deposit Insurance
Corporation —
- -
•—
- ■
Volume
159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
Y
(Continued from page 68)
promptly for plant and equipment
and expansion of working assets
to raise capacity to the new levels
as established by the possibilities
of the post-war era.
Engineering development should
be prosecuted aggressively as ma¬
terials
and
available,
products
and old
become
manpower
the' end that' new
become available
to
may
equipment, as well,as some $50,000,000,000 of stock piles of sup¬
plies. The report says;
NAM Seas Full Reconversion Job
The Challenge
products improved. ;
The
responsibility of manage¬
ment of private enterprise from
the standpoint of its longer pull
position must involve, as its most
fundamental concept, technologi¬
69
Taking Six
To Eighteen Months "After Last Shot Is Fired"
"The
effect
"all
war
controls should expire
by legislation twelve months after
hostilities
lessening the
The postwar report of the National Association of Manufacturers possibility of peacetime produc¬
tion
and
employment far more
reveals that in the judgment of the Association conversion of war
than offsets any immediate finan¬
industry back to civilian service, already starting, can not be com¬
cial, gain obtained by the govern¬
pleted until six to eighteen months after the last shot is fired in,
all major war zones. This period, after the Japs as well as the ment from dumping any postwar
Germans are defeated, is identified by the NAM as "the major excess of consumer supplies."
transition from war to peace." The^—
The report finds it possible that
—-———
—
advices
from
the
Association; long-drawn-out audit which would the wartime controls of prices,
tie
the funds needed by busi¬
ness- for
civilian production and
employment. It deals with the
that the report
contains de¬
tailed principles and proposals for
dealing with such problems as
termination of some $50,000,000,000 of war contracts by quick ne¬
state
gotiated
settlement
conditions
of
of
safety
in
jobs,
wages,
after
the
that
$17,000,000,000 in govern¬
'owned- war
plants
and
materials;
shot
last
different
is
controls
Admit Three To Firm
Davies,
City,
attorneys,
Harris
and
F.
Cornell
have
Durand,
GreenawaltYand
be
may
Auerbach,
lifted at different times; but that
Jr., to the firm
John
as
admitted
Kenneth
W.
of Jan.
cal progress.
That is the great in¬
strumentality that enables real
gains to be made throughout the
system as a whole. That point can
never be overemphasized.
There¬
fore, research and engineering de¬
velopments must be encouraged.
There is
not
CHARTERED
the
to
physical
It must be applied,-, and
sciences.
aggressively,-to all the functional
activities 'of enterprise; YY',7 Y,s ^
The
Mxnst (Cnummm
Ittiirii
rate must be recog¬
wage
nized and
dealt with,
not as the
predominating issue between two
::'
itf Knit
but as one of the most im¬
portant
economic problems
in¬
volved in the whole economy be¬
cause of its dominating
influence
on costs and selling prices. It.must
be dealt with from the point of
vidw- of a proper economic bal¬
groups,
between all groups.
ance
incentive should
An
.YYY.
apply
; : r Retired ;
have
directly
vidual
-
progress
YY-'
is
equal
WILLIAMSON
i
State and
-
Real Estate
Lord; Day'& Lord
'Y'
Cost
savings,
'
.
'• li'
..
of the
some
■
:
.
'
and
expanding
Surplus
.
'
-
'»
:
.
Y
$ 26,106,160.24
•
•
•.
«
30,279,347.84
•
•;
74,702,667.37
Obligations Y
.
•
•
.
•
,
•
.
.
4,240,000.00
*
•
•
.
.
•
840,000.00
•
•
•
•
•
•
.
.
.
.
s 147,412,756.33
$
•
,
.
.
4,737,084.90
Y
.
»
.
.
Mortgages
.
4,339,025.03
1,700,000.00
.Y
.
YYY
VYYY
.
.
.
ViccPresidcnt,
economy,
'
'
468,470.95
'
.ir
i V
y'
-
'
Davis
x Y' Y
P.olk War dwell
Sunderland & Kiendl
•
Y
»
.
• >
•
1
•
•
•
•
•
•
•
.
.«
•
•
2,000,000.00
Y
•
*
*
,
•
•'
-
♦«
^t
.
> y, v.,
Reserved for Taxes, Interest,
Unearned Discount
Dividend
■
-:Y
26,000,000.00
2,349,980.94
v
.
.
700,744.62
\
r
•
[j)
.
Expenses, etc.
.
114,707,133.13
,
•
1,151,361.45
.
.
Y
•
,
Y
;.
\
Payabie^January 3,1944
Y
Y
y;y&|:y; ;1 Total
3,536.19
Y
•
Vi
.
.
•
ry :
"j1'.
■
•
>'
y-
'Y
>Y
•
.
•* '
EDWIN S. S. SUNDERLAND
—
•
.
.
.
JOSEPHS
■
,1
.
Deposits
& Annuity Assn.
>;. ty
.a
.
President., Teachers. Insurance
■."?
,
are
,•,
.
♦
Life Insurance Company
DEVEREUX C.
,
'
.
General Reserve
JAMES II. BREWSTER, JR.Aetna
*
;
•■'. Y'""-'
v' : *
Cadwalader, Wichersham & Taft
Y
.
Y. Undivided Profits.
:
.'YYY
G. FORREST BUTTERWORTH
with higher standards of,
living—
objectives which may
well challenge the imagination of
every individual in the country.
Through these means lies the op¬
portunity to help cement the vic¬
tory of war into the lasting vic¬
Colonel,
U. S. Army Air Forces
Widening job opportunities, a dy¬
namic
•
•
Capital Stock
j
First Vice/President■■''•.■■.'X
•
depends.
post-war- goals
Y" Y;.
liabilities
i
-
*JOHN HAY WHITNEY
factors
upon;ftyhichrfthe .achievement of
,j
.
YY; : .Y: Total
'
f
'
Plimpton & Page
BENJAMIN STRONG
;
are
'"'r
.*•;
Dcbcvoisc, Stevenson,
result
These:
"
Y
♦
.
.
:
.
.
.
FRANCIS T. P. PLIMPTON
produce the most ef¬
in promoting job
opportunities and expansion of
enterprise, when expressed in the
form of lower prices to the con¬
sumer. YY YY Y' > Y:Y
:'YY, YY; YY
these
J*,'. '
can
source,
fective
resources
.
Y.
•
Lawyer.''."YVYYYYYYYi'Y
'
.
whatever
from
i''•
•*
,
effects.
harmful
our
' ,'j .'Y-
their
eliminate
j
HAMILTON HADLEYY
should be made to reduce business
and
o
Accrued Interest Receivable
Carter, Lcdyard & Mi/burn
'
of each
resources
particular business as measured
by a realistic estimate of its actual
productive capacity. Every effort
fluctuations
♦
.
•_-.*!
-•
Banking HouseY;
Y'
ROLAND L. REDMOND
the
all the economic
'
GEORGE DE FOREST LORD
practical rate of
long term of
a
over
"YY:-•' Y.-
Federal Reserve Bank Stock
j.
_
Costs should be established
utilization
"v.
Municipal Obligations
Other Bonds
j "Y
\ '.
:■ a Lieutenant Commander,
Y tU. S. Naval Reserve v
.
YY!
YY- 'YY
*BARKLIE HENRY t
policy of enterprise is
vital responsibil¬
the basis of
on
'
Y / Wilson& Mcllvaine; Chicago
of its most
ities.
'
United States Government
Y:Y'"Y'
YYY--
JOHN P; WILSON
:;
dY
PELL-
President
,
-
ings must not be permitted to be¬
come static.
Y v;Y: Y
The price
-V.
r
plus savings should be respected.
This is of vital consequence. Sav¬
one
•'
YCash in Banks
■;
'
consumption
to
/
Loans and Bills Purchased
The economic formula that pro¬
duction
-;:Y
of the Board,"
\J,:.Siome
- •
•
to
'
YYY'YYYy;: rYy';;'
r-
■Chairman
according to their indi¬
ability and their willing¬
to contrbute.
ness
!
opportunity
an
|Im*k
I |y Statement of Condition December 31,1943
Y.V
;; •" -y Y
_■
JOHNSLOANE
should
All
workers.
and
Y
'
JOHN J. PHELPS YY
not
.v,n
Ygfm Y
&
trustees
only to capital in the form of a
profit, but. likewise to manage¬
ment
1853
limit. Research should
no
confined
be
1
.
500,000.00
$147,412,756.33
>
,•
-.
S.tates Government and other securities are
public deposits and for other purposes required by law.
$19,855,000 par value of United
vYY pledged to
-y.
secure
,
tory of peace.
officers
McConnaughey, New SEC
Member, Sworn In
Robert
Ohio
K.
in
sworn
was
of
member
a
the
Yy WILLIAMSON PELL, President
":Y yy
Dec. 29
on
Securities
BENJAMIN STRONG, First Vice-President
of
McConnaughey.
as
Assistant Vice-Presidents
SEC—
the
of
members
HENRY
O'Brien.
Robert
E.
Healy and
Mr.
McConnaughey,
associated
tural
with
agencies of the Government,
was
nominated
Roosevelt
Oct.
on
Edmund Burke,
Senate
on
formerly
various agricul¬
19
to
succeed
HENRY
Nomination
E. SCHAPER
IRVIN
A. SPRAGUE
the
Y
STERLING
J. MADDEN
VAN
of
Mr.
McCon¬
referred to in
21, page 1605. ,
our
»•'
H. JOHN SIMMEN
FREDERICK M. E. PUELLE
LELAND C. COVEY
Assistant Secretaries
THOMAS
DE
WATER
nomination
was
FERDINAND G. VON KUMMER
H. ERB
AUGUSTUS J. MARTIN
LAWRENCE
#W. A. W. STEWART, JR.
fPAUL CAMPBELL, JR.
MEMBER
18.
issue of Oct.
KNOWLES
F.LEE
*
naughey
HENRY G. DIEFENBACH
B.
Y..Y.;.
Serving with the Armed Forces
C. MARSHALL
YV;'--.
BERKELEY D. JOHNSON
WILLIAM J. MILLER, JR.
ELMO P. BROWN
ARMITAGE MORRISON
FRANK J. KEELER
FREDERICK
Jr.. resigned. The
annroved
Nov.
President
bv
MERRITT
GEORGE
LLOYD
ELBEkf
CARL; O. SAYWARD
GEORGE
Sumner T. Pike.
ARTHUR
A.WAUGH
HENRY, L. SMOTHERS
B. HENZE
Chairman Ganson Purcell, Robert
H.
Vice-President and Secretary
Vice-President
Exchange Commission. The brief
ceremony was witnessed by
the
other
JAMES M. TRENARY,,
ALTON S. KEELER
and
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
&
Hardy, 1 Wall Street, New York
while
a
fired;
spe¬
Davies, Auerbach
rations,
have to be continued
may
disposing
some
ment
of
instead
up
end, and at such earlier
date as economic situations
cified by statute exist."
of
N.GOODRICH
/
W.
Burke,
1.
THE COMMERCIAL & FINANCIAL CHRONICLE
70
then there was
American Policies Of
letter part
FIGURE I
gradual, decline
a
in
dullness
to
the
Thursday, January 6, 1944
•:
The
summer;
of 1865 found business
activity in a recession phase com¬
pared with the high level of war¬
Post-War Readjustment
time
Hilliefis
A mild depres/
sion ensued in the next year with
(Continued from first page)
policies are now being put into ernment policy will be considered
v/<
effect, with or without benefit of separately.
prosperity.
Government
of
Expenditures
•
-
Doll
struction
active.
were
210
fol¬
The
.
The North was left with overV
lowing year was definitely, one of
expanded manufacturing and ag¬
Although it is perhaps already
depression
with • industry
and
ricultural industries but was not
trade at a low level and with,un¬
too late to institute a comprehend
seriously disorganized while the
sive post-war plan there is still
employment considerable. A re¬
.
h
...
for
opportunity
the past.
avoiding the mistakes of
ever.
this is a bigger war than
What was
valid before,
what
happened
True,
before,
no
may
longer be relevant. But a bigger
war means that bigger mistakes
be
can
made.
Can we afford to
extensive
suffered
had
South
vival
physical destruction of productive
property of all sorts. So complete
policies may prevent
Avstudy of past readjust¬
be and what
and
it without car¬
them?'
may suggest the
type 6f problem to be faced and
may indicate possible lines of so¬
ment ;
policies
indirectly
lution.
The
in this
miliar.
United
1865.
.
provided
an
the
investment
country are generally fa¬
likewise familiar.
iness activity is
The
purpose of this study is to
try to find the relation between
the two, to examine the post-war
policies and evaluate them,' using
as the: criterion of evaluation the
maintenance of a high level of
business activ¬
employment and
at
"Various agencies,
lis.
flated
came
once
stagnation
in
and
to
first
at
thought,
would
stock
hand
on
of
,
of
.
.
cotton
as
: a
agricultural
of
400
dollar
per
period.
same
.
the
200
1860
day in
marked, of
■'/*'*'
*
1859
1060
course,
1861
|
1862
Condition
Business
j X-
FISCAL
in
the
At
the
P0LICV, PRICES AliD
mands for
of
ices
pf the war
government.; de¬
supplies arid serv¬
war
,
*
Deposits
Bankers
.
.
.
.
•
•
United States Government
-
(Direct
or
•
•
•*
self
comprising the army of the North
began April 29; 1865, even before
Lincoln had been laid to ;rest.
little
more
it
leased.
In
necessarily
abrupt
even more
the
bilization, if it
South
the
almost
short time
a
disappeared
from
.
2,174,265,96L
;
State and
.
.
.
...
Liability
v
Obligations of Other Federal
Agencies
Loan
//X/
Obligations
Fully Guaranteed) •.
.
.
Municipal Securities
.
36,204,882
.
.
130,284,824
.
.
.
.
,
what
in
some¬
surplus
the
absorbing
labor force, both, civilian and mil¬
itary, released by the war. Under
the well-known Homestead Act,
passed in 1862, settlers could ac¬
quire farms of 160 acres free of
demo¬
paid
when
claim
the
the
he
settler
live
must
without
on
1870
any
special
was
concession
a
the limits
within
grants,
regular price,
80
i.
e. on
GtfV.t-';
•
.
.
...
.
47,038,098
.
Loans, Discounts, and Bankers' }
Acceptances.
....
...
Reserves for:
11!''"
'
C
633,126,637
Unearned Income
.
2,791,171
.
.
Other
.
.
*
.
1,402,585
.
for
Customers' Liability
Acceptances.. /.
.
.
.
./♦
".
Stock in Federal Reserve Bank
.
.
4,-471,464
5,625,000
.
Ownership of International Banking
Corporation
Bank Premises
;
.
.
.
.
V
.
.
Dividend
Capital
.
.
.
7,000,000
:.
.
.
•«
.
.
.
.
.
.
.
.
.
*
.
-
>
.
privileges
extended,
time
.7 24,053,596
a
A min¬
year was
promoted the granting of pensions
ItTXdisabled/ war .veterans. The
provisions
110,000,000
.
Undivided Profits
further
r
3,100,000
$77,500,000
.
.
12,695,897
.
eralized.,
were
In
progressively lib¬
the .disburse¬
were nearly
$15,500,000 and in 1870, over $29,000,000. •
■
K
; .V
;1866
ments on this account
211',353,596
36,649,081
♦
,
.
..
.
us
Branches
...
Items in Transit with
Interest; Tases^Other Accrued
Expenses, etc.
'
:
A.y.
nearly
....
Total
.
.
.
.
Fiscal Policies
1,917,734
The
Total.
$3,967,819,349
Figures of foreign branches are included as of December 23, 1943, except those
for enemy-occupied branches which are prior to occupation but less reserves.
$572,456,453 of United States Government Obligations and $5,398,354 of other assets are deposited to
6ecure $539,525,139 of Public and Trust Deposits and for other purposes required or permitted by law.
gradually reduced in the en¬
Sharp
(Member Federal Deposit Insurance Corporation)
;
.
,
as was
nevertheless
the
before
than
V,
the fall in expen¬
ditures the level of
was
disbursements
much higher
war.
■
From
April," 1865, to the
first of June, 1869, the govern¬
ment spent about $700,000,000. In
a comparable pre-war period the
of
first
the
spending
level of
only about
was
quarter as great. The eXpendi-?
tures themselves had a stimula-.
a
tive; effect
bounties,
pay,
of
settlement
activity;
of
business
on
The disbursements for
arrears
pensions, and the
contracts,,
consti¬
tuted^/according to a contempo¬
account, "a very great stim-.
rary
ulus|to consumption, and''Were
the j crea-f
domestic markets, 'or
therefore equivalent to
tion of
the
to
new
continuance
or
extension
of those previously existing,."
on
The
contemporary account goes
same
that
to say
"Was"
a
great part of the
spent by the government
amount
immediately invested in the
purchase of food; shelter, imple¬
ments, transportation, or business;
arid "really constituted a fund op
which the disbanded soldiers of
the army reestablished themselves
in the arts of peace."
yXV
cal
policies of the government had
net expansive
or
restrictive
effects": on the economy. An examinatiori of the tax structure and
no
break-down
the
of
fiscal
been
in fiscal
" /
.
,
■,
.,,
.
.
;
^
.
policies
Annual
,
as
a
expenditures
a
peak of $1,300,000,000
1865,. falling to $500,000,-
of
government
experidithres is required for an
adequate! appraisal of the impact
period.1
fiscal
reached
U:
years!
$2,750,000,000
of
suing period.
whole
were most closely associated with
the post-war pattern of business
1,050,345
$3,967,819,349'
debt
Federal
in 1865
in 1866
post-war
and 1 subsequent
A
behavior.
Other Assets
$1,000,000,000
a
there^ developed a surplus
still required,
however. A great many; soldiers
/In! monetary / terms, however!
took advantage-, of these provi¬
the expenditures .were more than
sions and; hastened the settlement
offset by revenues; as pointed out
of the public-lands. •,/
a' mqment ago the billion dollar *
7; The soldiers were also aided by deficit of 1865 was wiped out and
pension payments. The develop¬ a surplus developed!
This does
ment of a surplus in the Treasury
hot necessarily mean that the fis¬
y
.
usual¬
In*1872 soldiers'
imum of
5,418,025
'..
4,783,329;
Real Estate Loans and Securities
full
gain title to a homestead.
Unearned Discount and
*
1870
served in the army being credited
towards /residence
required
to
J-
.
In
the
circumstances.
were
Less: Own Acceptances
.
160.
allowed
such
cance.
$8,209,196
.
was
in
of
ly had a ready resale value the
concession, was of some signifi¬
;
Acceptances
in Portfolio
acres
a
alternate
Since land in these regions
$3,733,649v246
;
soldier
to
a^; double the
allowed only
was
instead of
acres
160
i
'
Other Securities
made
him; Under .the Homestead Act
/////'/
.
the
on
The war
land bounty
privileges being
provided for the soldier. Not until
r
Deposit $409,714,667)
f and Bills
fee
filed.
passed to
was
Before title to the land
ended
Branches
.
:
expenditures in that year by some
$36,000,000.
From a deficit of
was
p:The land policies helped
be called such,
can
and in
rapidly
had
sight.
In
than three ^months,
by Aug. 7, 60%. of them were re¬
(Includes United States War
885,401,994
•
.
1859-1869-
7
were; termi¬ penniless officers abounded. The
immediately. The
army; nevertheless assimilated it¬
H" liabilities
.,
1869
Activity
v?
and cases of stranded soldiers and
demobilization of the million men
a
Business Annals.
Thorp,
was
kind
every
almost
nated
BRANCHES
'■/'• Vi;
///
./;,
1866
conclusion
the
ASSETS
1867
B V SINESS ACTIVITY>
tremendous
(In dollars only—cents omitted)
Cash and Due from Banks and
18661
1865
'
'
INCLUDING "DOMESTIC AND FOREIGN•
1064 1
w
much
of December 31, 1943
as
1
1863
/ ?
sections which sold
*
100
gold basis in
Commodities
railway
*
'"A
rose
homesteader
Condensed Statement of
.;*>
yd Rscovery
/
New York
.
■
110
,
'
Tlirougliout Greater
*/■*■.'
Activity
; m Depression
100
a
orany
Fifty-five Wall Street
New Y ork
v
/
[vjj Recession
homestead for five years.
«
130
'
//
Demobilization: Military, and ft ^.Sourcesf Oovernment expenditures and revenues, tf.S. Treasury Department
:v¥ Civilian
/// /
HCeS' ClS' ®ure vU-of:Labor statistioe? Business activity, Mitchell
and > woolen
9
(Fiscal
-year«)
%
v
120
V/ar
City Bank of New York
Officer
140
Revenues '
/ □ Prosperity
all charges, except for a small
Head
r
300
may,
post-war years was
.
1 may be used Industry and trade expanded rapAll aspects of gov-' idly at the close of the war and
The National
\
V/ ■'
■
•
after/ the
years
examples
The lowest
nearly 50%
basis in 1871.
more
of Figure
guide.
Government
•
N
correspondingly. OriV a cur¬
rency basis the higher price level
THE CIVIL WAR
bottom
.*
rose
goods, there was no accumulation
of
the
so-called
manufacturing
Southern, .and
Turning first to the Civil War, industries.* The
we
may
glance briefly at the heretofore rebellious States, combackground of economic condi¬ prising a population *of about 12,tions at the close of hostilities and 000,000, were, moreover, destitute
trace;the course of business ac¬ of nearly Cvefything essential to
tivity1 during tbe following few gender possible the cpntfnuance of
years;
The shaded strip at the civilization, or even life itself."
y.\
some
few
Rents
the
1865, and to an unnaturally stim¬
export; and with the ex¬
of
600
average,
more: on
ulated
ception*
annual-,
from 40 to 120% on a
The
Attention is concentrated on. products had been reduced to a
minimum, owing to the enormous
war, \ the
critical
readjustment consumption of the men and ani¬
period,
which
will
determine mals of "the army, to a partial
whether the longer-run problems
failure of the crops in the year
position of prosperity or one
depression.
/ ::-'W///;:
after
gold
which,
seem to
first few years following the
will have to be dealt with from a
150
then .fell
but
received
ity.
the
for
gold
one
of
the business of the country
have been almost inevitable.
600
*:
be
mentioned.
class of
unskilled labor which had earned
prevent that
derangement
billion dollars:
a
The
A
war.
\
,
a
was at its highest level
1865, as shown in, Figure 1.
The price structure remained in¬
4"J contemporary v observer,
e e
tells
160
in
poned consumer demand, led to a
short booni David A. Wells, that
k
700
and
arid
•
however,
opportunity without equal.
170
,
both ; North
million. men
iri 1866,
rapidly.
•/!•//'
The resulting demand for goods,
post-war policies adopted including goods to satisfy post¬
The broad pattern of bus-,
over
war,
600
cost the
had
war
Prices reached their peak
to only
300,000
bales- in
The reconstruction of the
country
the
far from
not
180
;/
(is so-icq)
the
States,
South,
of the entire United
bales in
Wholesale Prices'
900
in the South
higher "level of
activity.
Directly and
business
States fell from 4,805,000
1860
190
improvement
characterized
rying his rations With him." Many
planters on returning horpe found
that their erstwhile
slaves had
crop
of
.return
a
post-war period;; Railroad
building, expanding foreign'; trade
unturned in find¬
planted cotton land to corn. The
ing out what those mistakes may
cotton
leave any stone
and
diate
said of some of the land:
could not fly over
1868
prosperity in 1869 end, the imme¬
that it was
"A croW
devastation
the
was
in
200
1„000
.
considerable
;
220
trade
generally
dull. although
manufacturing and railroad con¬
.
post-war planning.
Index:
Numbersf
(Fiscayears)
"At the
direct
1 The
the
policy in the
post-war
■:
;
■
•
beginning of the
or
internal
avoided
war
vr.T
all
taxation/had
because
Congress
economic basis for this analysis of
impact of
fiscal policy was explained
writer in the American
September. 1943, pp. 679Canadian Journal of Eco-
000 in 1866 and to less than $400,-
by
000,000 in. 1867 and
Economic Review,
1868/ Reve¬
nues lagged,
attaining their annuaLpeak irt 1866 and. exceeding
-
,,
681/
the: present
and
the
,
nomics and Political Science, August, 1942,
.pp.;
•
•'
Volume > 159
afraid
■was.
institute
THE COMMERCIAL &* FINANCIAL CHRONICLE
Number 4244
that
any
such
attempt to
-
would
taxation
such
opposition as to im¬
pede the' war effort. The people
had. never been accustomed to in¬
arouse
policy - increased.'
commodities
further
and collection.
At
Congress relied
indirect/ taxes
imports, and it
•upon
til
first, therefore,
on
four
months
not un¬
was
after
the
begin¬
ning of hostilities that direct and
internal
After
the
taxes
some
of
rate
set
imposed.
preliminary schedules
at 5%
were
income
'
taxation
was
incomes under
$5,exemption of $600
and of. house rent actually paid.
on
000, with an
Incomes
in
$5,000 and
of ,$10,000 were
in \ excess
pot
taxed
additional
an
incomes
of
excess
%;
and
$10,000 were sub¬
additional tax of 5%
over
jected to
an
without any exemptions. The bur¬
of : excise
taxes
may
be
den
.
from the following sam¬
cotton, 20 per pound;
judged
ples:
raw
salt, 60
per hundred pounds; su¬
2-3Vz0 per pound;--distilled
spirits, 200 per gallon in 1863, 600
gar,
:
■in.' 1864,
then $1.50
gallon. There
per
.
5%—later
and-later
$2
tax
of
was
a
6%—on
manufactures,
a tax which was imposed at each
stage of production so that .the
amount,
actually
sometimes
much
as
paid
value of the finished product. The
manufacturer also had to pay a
,
license tax
5-10%
:
and
income tax of
an
his profits.
on
v In the last year of the war,
cal
1865, the total
$300,000,000
revenue
of
fis¬
over
distributed
was
roughly in - the following propor¬
tions .by-, source:
customs,
14;
internal
revenue,
%,
(In
1862
there had been
internal
no
nal revenue
similar
twice
were
important
as
than
more
income and
as
profits taxes.
;
(
This
analysis of the tax struc¬
ture is designed to provide a basis
for gauging the effects of tax pol¬
icy in the first post-war year, i. e.
before
changes
any
There
to
seems
doubt
be
that the .tax
made.
were
no
room»to
structure
was
highly regressive since a wide va¬
riety of commodities provided the
major portion of tax revenues and
J'; "the income tax
was very moderin the upper,, levels, ranging
from 9% on the lowest taxable
;
ate
jl
income
^
vbin
to
ait maximum
incomes
of
10%,
Jt is
$10,000.
large part
over
t^^likely, therefore, that a
j
of the tax revenue had
a restricon national income and
activity.
Much of the
tive effect
I
business
j
money
j
in the form of taxation would
\\
|
|
/
diverted to the Treasury
probably have been spent. Hence
in the first full post-war year, fiscal 1866, when a , small surplus
developed
and the > tax structure
described; yielded over half
just
a
billion
that
the
dollars
substantial.
that
it
effects
were
The
expenditures
of
went,
year
interest*
likely
seems
restrictive
one-quarter
to
debt
on
and
the
rest
mainly to the War and Navy De¬
partments. Of the interest on the
debt
certainly
had
no
substantial
a
expansive impact
Taking both
expenditures into
economy.
and
part
the
on
revenues
account,
then,
it Would seem that fiscal
policy in the first post-war year
tended
to
restrict*
business
and
ered taxes
manufactured prod¬
ucts,"; removed
the
differential
rates
on
on
incomes in excess, of $5,-
000 and increased the
from
them
$600
now
to
on
exemptions
$1,000,
all
allowing
incomes.
The
proportionate importance of
ous
revenues
same
the
vari¬
types of taxes in the total of
remained
after
these
previous
changes
year.
expenditures fell
revenues,
roughly
as
the
in
Ndn-interest
mpre
than, total
however, and it is like¬
There had been many
increases
during the war and
the-first post-war increases came
in May and July, 1866. The ces¬
in rates. Duties
marble'
following: tremendous
perhaps
effect
The
the
1870'when
The
in; 1868;
business
activity / in
corre¬
shown
prosperity in
1865, depression in 1866 and 1867,
and some improvement early in
1868.
Allowing for a not unrea¬
sponding
calendar
in' Figure
1,
years, ;
was:
sonable six-month
time
lag rep¬
resenting the difference
between
the
fiscal
and
50
next
made.
1872
major
some
change
What
have
effects
domestic
and
net imports
(i.e.
ed
im¬
other
products, and reduced rates
on
large number of items, in¬
First,
effects
a
and
of
number
a
and the corre¬
sponding calendar years, it seems
clear that to the fiscal policies
pursued must go a large part of
the blame for the depression fol¬
lowing the Civil War. Evidently
private spending did not take up
of
(Continued
on
page
••
Monetary Policy
after the Civil War
reflection
The
largely
was
fiscal
the
of
adopted
policy
monetary
a
policies.
sharp
and the
drop in expenditures
development of a budget
surplus
removed
continued
issues
the
Company
for
need
of paper money.
Act authorizing the
An
contrac¬
IOO
tion of the currency as a prelude
to
/'
the
resumption of specie
ments
passed in April,
1866:
was
Bonds
issued
be
to
were
wasset
first
six
at
backs
months
i
and
had
been
retired,
$356,^00,000 ;s till
Some
of
the
Cash
leaving
notes
economic
no
United
spending
since
financed
the
amount
while the
V
.
'
^
,
became effective in
Deposits.
'
i
1865,
'
'
notes
;
t
.
;
;
.
ss
.
.
;
i
.
•
.
items
arguments
;
;
.
.
at
we
capital."
In
ally:
in
favor
of
of'
the
cases
a
the
tax
whole "actu¬
discriminated
domestically;
For
as
instance,
-
*
••
•
/
'
.
.
.
...
•
•
.
.
.
.
%
.
2,011,867.74
70,177.09
«
2,494,053.92
/
526,869.96
'•>'•
'
^743,939,270.76
'
against
the
produced
article:
imported
$648,701,337.45
40,507,109.46
Manila
.
•
•
•
.
.
.
.»
.
.
...
.
.
$689,208,446.91
;
.
525,000.00
x
2,932,387.25
.
.
70,177.09
15,000,000.00
.
.
.
30,000,000.00
'./*
6,203,259.51
51,203,259.51
obligations and other securities carried
$101,95S,379.90 in the above statement'are pledged to secure
;
TRUSTEES
v
'
malcolm p. aldrich
r/v//.
'
;
francis b.
;
,
russell h. dunham
arthur a. ballantine
/
1
/
Bennington, Vt.
Hercules Powder Company
william hale harkness
New York
„
•
New York
seton
porter^
President, National Distillers
Products
Corporation
morris sayre
Executive Vice-President
Corn Products
alfred a. cook
■
Cook, Lehman, Greenman,
■
,
Litchfield, Conn.
james c. colgate
,
■
samuel h. fisher
bierwirth
••President
v
New York
Chairman of the Board
/: john e.
:
howard w. maxwell
1
of the Board
United States Rubber Company
harry t. peters
Root, Clark, Buckner
./ ./ & Ballantine
;
davis, jr.
Chairman
New York
r
strength¬
told
are
some
158,771,343.20
deposits of $93; 194,261.48 and other,
public and trust deposits and for other purposes required by law.
domes¬
"hordes of monopolists and man¬
ufacturers who have infested the
structure taken
.
United States Government
as an equalizing device.
Lobbyists filled the halls of Con¬
and
.
...
;
.
"r
•
President, Veeder-Root Inc.
The per¬
.
.
United States Government
the tariff
gress.
.
$743,939,270.76
.
on
.
.
Surplus
'The
popular
discontent
with
the internal revenue taxes did not
the tariff.
.
Undivided Profits
outstand¬
;.
the
.
'
Capital
South.
heavy taxes
;
;
•
/ -graham h. anthony
ened
•
Acceptances
though the volume
tically-produced
'
.
Payable, Reserve for Taxes and Other Liabilities
Tariff Policy
carry over to
381,441,910.32
Accounts
By October;
there were already 35 of
in eight
Southern States!
sistence of
.
23,001,161.92
.
.
the establishment of national
them
•
.
ing increased from $170,000,000 in
1865 to $290,000,000 in 1870.
A
stabilizing and, under the circum¬
stances,
favorable
development
the
.•
Payable January 3,1944
bonds, the measure may be
regarded as deflationary in its in¬
in
.•
Con¬
charters.
bank
/
.
/
Dividend
the requirement' of the
deposit of United States Govern¬
even
%
♦
.
sidering
national
67,673,551.09
from
ment
fluence
v
Direct and
.
Outstanding and Certified Checks
August, 1866.
transfer
national
*
$107,948,335.52
.
LIABILITIES
-
to
.
.
.
v
a
.
.
—
■
.
%
.
.
still going ory.
was
in
.■■/•.•////://./•/
.
.
Mortgages.
Equities in Real Estate C
On the banking side/ the dis¬
criminatory tax of 10% ori notes
of state banks, which had been
passed before the end of the war,
resulted
.
;
,//.
Real Estate Bonds and
several years before,
war
..3
.
of
.
taken place
Obligations
Customers'Liability for Acceptances.
outstanding might
important but. it had
been
banks
'''
/•/■'
' /
InterestReceivable, Accounts Receivable and Other Assets
not
of
Government
Loans and Discounts
paper- money
was
'
'U.
by
significantly
A: sudden stoppage in
increase
States
Other Bonds and Securities
voluntary purchase
implies that current
was
curtailed.
of
•'
...
■
Hand and in Federal Reserve Bank
Guaranteed
-
bonds and the
of the bonds
on
were
effects
was
/•/////
Exchanges, Collections and Other Cash Items
outstanding..
retired
retirement
state
v
ten rockefeller plaza
ASSETS
be said to have had vir¬
can
tually*
It
*
At the close of business, December 31, 1943
;
•/■ ..//:'*
'• ■ I.
-
///:':
subsequently reissued.. These pol¬
have
J'-"'-
"v
CONDENSED STATEMENT OF CONDITION
$10,000,000 -..in
only $44,000,000 worth of green¬
the
-:
to. fi¬
$4,000,000
per
month thereafter.
The
provisions of this Act were sus¬
pended in February, 1868,: after
the
$
the retirement of the notes
ment
icies
BROADWAY
:
"
madison avenue and 40th street
and the maximum rate of retire-,
the
V.r
pay¬
'
Refining Co.
horace havemfyer, jr.
Executive Vice-President
/
The National Sugar Refining Company
vanderbilt webb
b. brewster jennings
medley g. b. whelpley
New York
Guggenheim Bros.
{
Goldmark & Loeb
william f. cutler
Vice-President
American Brake Shoe Company
Member of
re¬
Second, tempo¬
war-time changes in struct
rary
the slack.
The
the
the armed forces.
years
•
two
short-
tion of government war spending
and the rapid demobilization of
ports rose somewhat and exports
tea, coffee
had
the
turn to peace were ignored. This
is shown in the sudden termina¬
imports continued falling. In 1869
imports
improved
substantially
while exports fell.
In 1870 im¬
on
War
Civil
term economic
following year, 1967, both de¬
clined, with exports-falling much
more
sharply than imports.
In
1868 exports rose slightly while
Finally two laws passed in
the
after
Civil War
policies adopt¬
characteristics.
the
entirely repealed the duties
Readjustment
The readjustment
ex¬
ports less re-exports) doubled. In
were
of
Policies Following the
7
ports
has
was
ulated exports in 1866.
Consequences
year
both
war
activity—what
primarily to fiscal, and partly to
monetary, policy—probably stim¬
tariffs
In the first
evidently
hardly
policy.
On
hand, the decline in the
price level — traceable
the other
became
these
did
trade?
on
after the end of the
in
was
of
The tempo¬
thus
tariffs
war
Imports
import—and
influenced by tariff
long-term policy/
items.
reductions
"thereafter.
years
rary '
raised
other
many
sity to
imports in I860. By 1865 it
and by 1868 it attained
peark of 46% and remained
a
on
expansive
pattern of
slight
a
were
16%
business
been called the marginal propen¬
pre-war
above the pre-war level for some
prompted
for an in¬
* pressure
rates remained
38%
Was
sation of army demand
successful
of
total
in tariff rates
and
the
greatly.
related to the domestic state
leather products.
high compared with the
years.
Duties had been
per ton.
expansive effect in 1865, some re¬
strictive effect in 1866 and 1867,
shows
rose
were
and
Nevertheless the
States aggre¬
gated from $48 to $73
wool,1 wool manufactures, hairdoth/steel rails, cotton thread,
cotton fabrics,
linseed oil, flax,
copper,
nickel, telegraph -wire,
ac¬
burden...:Acting in July, 1866,
March, 1867, Congress low¬
fibre in the United
crease
;
'/
/
The pattern of fiscal policy then
The net effect of the banking de¬
tivity.
•'-•// v;..-/.''I
velopments, however, was prob¬
By the second full, post-war.
ably restrictive although to only
year,
fiscal 1867, Congress/ had
a minor degree...
f
%/
made
certain
reductions in the
tax
cluding coal, salt, tin, and cotton,
wool
manufactured out of Manila
rope
*;
■
j
revenues
$85,000,000. Nonexpenditures
increased
reve¬
In the inter¬
receipts, excises and
taxes
aggregate
some
at the close of the war Was
taxed $56 per ton while taxes on
rope
of fiscal policy.
nance
receipts at all.)
nue
still
$23,000,000 in the same period
thus reducing and possibly
re¬
moving the net restrictive effects
was
20% of the
as
.
declined
;
reduced
were
and
interest
5
;
/ ■
In the third post-war year, fis¬
cal 1868, tax rates on income and
ternal taxes on any scale and no
machinery existed for assessment
.
effects of'
ly "that the, restrictive
fiscal
71
New York
the Federal Deposit Insurance Corporation
72)
from
American Policies Of Posf-War
ture
is
Thursday, January 6, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
72
(Continued from page 71)
made permanent. This rather different
were
demonstrated
recession
with the confusion resulting from
the armistice.
The expansion of
foreign trade came to a halt and
stock prices slumped. The reces¬
sion was soon halted and in 1919
there was a recovery and then
prosperity. Uncertainty was over
and
unusually
active business
took place, building revived, for¬
eign trade recovered and stocks
There
greenback
in the retention of the
permanent part of the
monetary circulation. The struc¬
tural policies somewhat mitigated
issue
as
a
the effects of the short-term
icies
since
immediate
the
pol¬
conse¬
of' a: withdrawal of the
greenback and a removal, of tar¬
quences
deflationary
iffs would have been
would have accentuated the
results of sudden termination of
and
spending
tion
and
The
stagnation and severe unemploy¬
ment hit the country late in the
forces.
of these two sets of
policies
were,
respectively,
a
post-war depression and a per¬
petuation of the war-time change
in the structure of production.
Business orders were can¬
volume. The de¬
year.
celled in heavy
pression lasted through 1921 and
then
there was
a
gradual but
steady recovery in 1922 centering
around booms in the building and
WAR
THE FIRST WORLD
automobile industries.
readjustment policies which
adopted
after
the
First
World War seemed to have the
Except for
mild depression in 1924 prosper¬
a
were
same
phase
prosperity
The
boomed.
slight
extended well into 1920 and then
consequences
The
a
was
demobiliza¬
rapid
armed
the
of
the'bot¬
Figure 2.
tom of
lesser extent,
tive tariff and, to a
The latter
way.
in the strip at
shown
is
mainte¬
the
in
and increase of the protec¬
nance
Readjustment
prevailed
conditions
ous
during
the next few years.
underlying
characteristics
activity behaved in a
risen
had
Prices
but business
100%
over
further
in
at
in
1923
to
there
1922
by
was
Service
jobs
It
rather
was
difficult
$5,000,000.
of
appropriation
assisted in its work by the
was
semi-governmental
Council
of
National Defense. Representatives
of the U. S. E. S. with the neces¬
Vocational
application ^blanks had even
sent to France, By the end
1919
over
134
million dis¬
The
veterans.
the
der
veterans un¬
■
%,;•
;V A.-
Forces :'
\
The demobilization of the
bers
of
re¬
.
'■
mained.
The demobilization policy clear¬
ly did not tend to assist in dove¬
tailing
discharge
the
soldiers
of
principles
France
to
eco¬
900,000 had been placed.
;
I,
A discharge payment of $60 was
made to all ex-servicemen. Total
disbursements on this account ex¬
Men
this
on
mainly
expedi¬
men. in
were
million
two
in
by going to school.
Within
$250,000,000. Later, in 1924,
bonus bill provided
ceeded
veterans'
a
for
kept busy by par¬
organized athletics
were
ticipating
and
took
administrative
The
ency.
forces
followed
of
and more than
the U. S. E. S.
endowment policies,
a
of 20-year
form
the
against which
year the process of demobilization
the veterans could borrow money
virtually complete, with 3%
the government. Each sol¬
dier received $1.25 per day credit
for overseas service and $1 per
was
million
of
from
released
men
branches
the
the
demobilization day credit for home service. Some
some
recognition was given to years later, in 1936, the veterans'
economic considerations. Any sol¬ certificates were paid for in ninedier
who
faced
unemployment year 3% non-transferable bonds
might be held in the service for which could be redeemed by the
veterans on demand.
Other aids
a reasonable time while trying to
locate a job for himself.
Simi¬ to the veteran were the Bureau of
larly
an
immediate
discharge War Risk Insurance which sold
latter ' stages
of
could
show
that
job
a
discharge
ex-servicemen
was
to
allowances
and paid monthly
disabled
the Public Health
by military
was
demand
owes
buying
their
or
civilian market,
being partly made
the
on
demand
effective
three
suddenly
now
men
some¬
consumer
resulting from
million
four
by personal or family
The subsequent depres¬
sion could have been
mitigated by
higher discharge payments spread
over
number of years.
a
took
veterans,
Service, which
disabled
over
Termination
cases
after
of
Termination
took
War
of
On the morning of Nov.
1918, after receipt of official
news of the armistice, the Secre¬
tary of War, the Secretary of the
Navy and, the Director of the
11,
United
States
that
Shipping
all.
work,
Sunday
and
overtime
government
on
contracts
would cease at once and that
production
would be
war
tapered off
by the various procurement agen¬
cies in consultation with the De¬
half
unfinished
of the
Some
many
did
the
and in fact
in an in¬
not,
contracts
many
about
at
contracts
termination clauses
standard
but
War
$7 ¥2
contracts
of
remained
had
the
some
and
Of
Board,
worth
armistice.
TRUST COMPANY
Board
conference and announced
a
billion
:
per¬
factors.
Industries
;CdfCffA]
contracts
haps greater regard for economic
partment of Labor
CITY OF NEW YORK
Contracts
war
place rapidly but with
policies to held
insurance
low-priced
soldier
any
nevertheless
boom
thing to the increase in
from
all
In
service.
negligible effect in keeping up
power.
The 1919
certificates savings.
service
adjusted
which' took
a
had. applied their purchasing
servicemen
charged
discharged first and the
were
those
of
mem¬
without
armed
and
inhibitions.
nomic
side
the
rapidly
place
ever,
DECEMBER 31, 1943
Law
try and, on the financial side, had
waiting for him. In general, how¬
STATEMENT OF CONDITION
residence
special
Homestead
with their reabsorption in indus¬
units rather than by trades or by
''u JS.U';'-;i-Tki
voca¬
disabled
of
privileges accorded
which
the
with
rehabilitation
been
NATIONAL BANK
OF THE
Guidance,
concerned
was
tional
sary
Demobilization of the Armed
who
CHASE
it
but
an
rise
a
Employment
valuable in finding
States
was
discharge and the Federal Board
for
to look after four million men on
fairly stable level.
a
might be obtained by
THE
The United
few years
a
seg¬
ments of the economy.
rose
followed
various
of
economic; needs
November,
to a peak
in
May, 1920, having increased
more
than 170% over the July,
1914, level. In the following year
prices were cut almost in half as
a result of a
very sharp decline.
After going
down only slightly
1914,
then
July,
They
1918.
were
formal and unwritten state. Term¬
'
ination
YORK
NEU
but
ffV,:v:Cflk RESOURCES
Cash and Due from Banks
fully guaranteed
State and
Statement
of Condition, December 31,1943 "
Obligations, direct
U. S. Government
and
suspended
took
i$1,050,012,132.96
V.
.
.
Municipal
.
/
.
%
.
Securities
>.
.
.
89,737,516.11
1
Loans, Discounts and Bankers'
Acceptances
.
.
.
.
.
Customers'
.
.
.
791,979,924.59
.
9,114,028.50
<
Accrued Interest Receivable
Mortgages
.
>
.
>
.
Acceptance Liability
.
Banking Houses
.
V
Other Real Estate
Other Assets
...
.
.
.
.
....
.
•.■'*•
Stock in Federal Reserve Bank
.
.;
.
Loans and Discounts
.
4.990.637.67
.
T;'-;'Mi LIABILITIES ¥
Surplus
u.
.
,
.
,00
1,971,418. ,40
<
r
"3,088,100. ,00
First
Mortgages
on
r
;
.
Real Estate
Headquarters Building
»
207,516,205, ■57
8,838,483, ,58
f.
'
U.
.
.
'."
*
.
*
Other Assets
.
.
.
.
'
.
.16,764,000. .0.0
82,
r ;
-.
.
.
1,762,924, 88
.
.
3,176,764. 68
$1,078,718,819.21
Reserve for
Contingencies
.
1944
.
.
Acceptances
Outstanding
.
.
.
.
.
$
.
.
5,180,000.00
Deposits
Official Checks
.
.
Reserve for Taxes, Interest, etc.
Deposits
%
.
6,455,398.70
.
.
5,863,504.79
4,375,581,740.97
.
and
.
.
Other Liabilities
.
Acceptances
on
as
.
.
.
.
.
.
.
561,411.98
.
.
7,565,170.19
Acceptances
.
S4,104,0i3-I6
.
:
Less Amount in
•
•
Dividend
1
2,019,972. 52
Expenses
payable January 3^1944
4,358,260, '57.::
•
^
.
750,000
,00
Other Liabilities
551 >215, 35
Unearned Income
462,169.37
Capital Stock
;
$50,006^000.00
.
carried
at
$735,982-
Undivided Profits
.
.
;1 :: f: ;7'
56,428,927.17
106,428,927, •11
fledged to secure U. S. Government War Loan Deposits
of $583,660,010 04 and other public funds and trust deposits, and for
other purposes as required or permitted by law.
755 00 are
,
the
the contracts in force at
of
armistice.
By July 1, 1920
liquidation of contracts was more
than 98% complete. At about that
depression set in
help wondering
statement by-; the Assistant
date,
at
Insurance Corporation '
the
too,
cannot
one
the
Secretary of f War, writing- in the
latter half of 1921 when the
was.
sion: ;'
and
coun¬
in the midst of depres¬
"■'.•YE:1'"A F.\V• F
promptness
and
wisdom
industry to taper off
war
without
stop
shock
to
the
economic structure of the country,
stabilized
had
business,
relieved
which they were
the war producers,
and thus had brought the nation
safely and easily through what
might otherwise have been the
sharpest business crisis it had ever
of
cost.Ofthese,$l3l ,093,793.76
of
debt
$1,078,718,819. 21
are
are
stated at amortized
pledged to secure deposits
public monies and for other purposes required by law.
for
known."
Disposal
.
Materials
of
disposing of materials and
plant the government was actu-r
ally concerned with the effects
on
business activity.
It kept for
itself
could
policy
all
of
Insurance Corporation
materials
plant and
followed
and; it
use
releasing
all
it
the
general
commodities to the public through
the
industries
which
had pro¬
actual
these
extremely
instances
.the
commodities.
methods
of
varied
materals
cated before
Member Federal Deposit
Plant
and
In
duced
United States Government Securities
tions
carrying
2,084,040.64
Surplus and
Member Federal Deposit
,
load
\
$4,679,973,963.50
United States Government and other securities
allowed
of
the banks of the country of a vast
Reserve for Taxes and Other
5,888,599-41
2,808,450.76
.
were
10% on these
costs. It is not surprising &at the
Assistant Secretary of War could
write, , "These
terms
received
widespread
acceptance."
The
government paid an average of
profit
a.
lowed
$961,205,40.1.89 ;C/:T;F
::7 v %%
2,942,872.34 $964,148,274.23
«
Portfolio
Endorser
Foreign Bills
Liability
.
8,697,050.17
Less Amount in
Portfolio
LIABILITIES
272,878,137.46
;
were
shown in that settlement had'al¬
——
$
amounts
of the contract
plus
"The
37,878,137.46
Dividend Payable February 1,
ance
try
134,730,000.00
.
the
once
The alternative of
long drawn-out court cases made
for speedy agreement.
All costs
actually incurred in the perform¬
and
$100,270,000.00
Undivided Profits
were
about 13%" of the unfinished por¬
•.
Liability of Customers for Acceptances ;
^
1,250,000.
,.v
.
•
.
.
Other Real Estate
.
Securities
'
1,885,543.02
Capital Stock
&y6*3>7W2.$ 56
Other Securities.
35,740,420.22
.
Capital Funds:
.$220,548,903 ,89
.
~
State, County'and Municipal
$4,679,973,963.50
-
.4;.
.
4,535,147.91 ."k
V
.
-
U.S. Government Securities
7,050,000.00
.
Stock of Federal Reserve Bank <
.
Bank and Other Banks
7.371.146.66
.
.
Hand, and Due from Federal Re-
on
serve
*
.
Cash
Ad¬
75 % ;
agreed upon.
ASSETS
74,385,803.51 v
.
.
.
....
government
of
payments
made;
5
2,603^171,662.35
>
the
and
unused materials.
over
vance
1
Other Securities
policy varied accordingly
general production;;was
in
methods
sale.
may
The
disposal
and
in
were
One
be
or
were
a
few
fabri¬
two
of
illustrated.
A supply of 600,000 tons of nitrate
,
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
159
riod reflect the new and increased
II
FIGURE
from
Bllliot
Index
of
■
$!72
DoHnr
income and excess
stock
and
Prices
may
estate
be called
on
on
commodities and services pro¬
76 per cent.
In 1917 they
each
cent.
income
contributed
By
about
50
per
the relation be¬
h^d been reversed
with8 proportions, of roughly ,80
The total of excise
per
on
and wealth"—rose from $125 mil¬
22
210
ing
.20
J.
liquor,
turers'
200
which
18
190
from
be
may
called
and
what
excises,
"taxes
cent and 20 per cent, respec¬
This
tively.
70
to
levelled
off
some¬
and 30 cent,
per,, cent
respectively, in 1919.
The
taxes
in
force
first
$400 million in 1916 to $1.1
ing the nature of the individual
taxes just described, it seems safe
to say that not more than about
half of the revenues had restric¬
tive
effects
private Spending.
to the spending side,
of the nearly $19 billion of ex¬
penditures in 1919 less than $%
Turning
billion
the
during the
half-year following the ar¬
mistice, i.e. from November 1918
on
services"—rose
to the end of the fiscal year
1919,
and wealth and
30% from com¬
modities and services.
Consider-*
on
now
were
for interest
rest
going
Department,
$9
for
12
160
,'i
Covernnent
Expenditures
10
150
(Fiscal yef'ls)
j
'.I
Bankers Trust Company
\
8
140
NEW YORK
130
I
4
,C?6veranent
'
/
f
J-.
120
—
yeorkp*'1'0*?61'1^
/^/
£
^
Revenwns
(Wscal
I
fwli'er
"
1
Activity
f^Recession
1
110
|7?.}Dcpre scion
0
P/fcecov<ery
1913
1914
11916 11917 11918 11919 1
1915
w
j
1920
100
X,1'
-
IE-
J
1922
1921
W'-
1923
iy
Business
Activity
CONDENSED STATEMENT OF
v;"'.-fiscal policy, prices "Am business
Sources:
■•7,
and revenues, U.S. Treasury Department,U.S.,. Bureau of Labor Statistics? Business activity, Mitchell
prices,
Thorp,
Business Annals.
;-o'f soda "was
'
^
■:
as a war
billion in the fiscal year 1918 and
then rose in the following year to
reserve, part was taken over by
the Department of Agriculture for
use
as
a
fertilizer and the rest
the succeeding two years expendi¬
tures fell to about a third of this
lows: half
retained
was
fol¬
as
Department
importers
nitrate
by
disposed of
sold for the War
was
at' market
prices. The Ordnance Department
turned its surplus cartridge cloth
'into clothing fabric before sale.
The
cost had been 72c a
average
At
yard.
rment
first
after fabrication it
than 85V2C.
DepartI2V2C
but
received
The
retail
disrupting
that
prices
actually
kept
trade.
fear
But
seeing
high and
Congress, after the
middle of 1919, authorized the War
Department to sell food, clothing
and household supplies at retail.
At first the post-offices served as
agents
and
<
sales1,were
made
by
'mail order."But this was not very
;
successful and in September 1919
army
retail "stores
set
were
up.
Selling prices were fixed at 4/5
of the
prevalent retail market
from
$300
to
vailed in the
following8 few
.
right order of
'
■
,
The existence of large
must have
had
a
supplies
retarding influ¬
ence
on
prices but the orderly
marketing of the items avoided
any
sharply
disruptive, effects.
.
From
economic
an
point of view
the principles underlying the dis¬
position of plant and materials
have
to
seem
been
In order to appreciate
be expected from these
is
to
necessary
break-down
of
many
rates
For
taxes
new
old taxes
on
incomes
from %%' in
Under
the
1916
good
Revenue
6%, with 12%
the. surtax
1917
The
greatly.
1916
9-18
and
corporation
ous
while in
••
fiscal
policies
policies followed
terms.
in
so
far
expressed
The
as.
in
the
in
latter
monetary
pattern of the aggre¬
gates is shown in Figure 2.
ernment
Gov¬
expenditures reached $13
,
Mortgages
.
.
•
*
.
.
«
.
12,621,357.02
;
.
.
.
.
•
.
48,941,929.48
•
•
*
•
•
•
.*••••
.
♦
732,649.81
15,867,316.64
.
•
«
4,245,604.78
.
•
1,696,632.10
Acceptances
on
.
.
,
in
cent
of
.
.
.
.
Deposits
Accrued
....
>
$25,000,000.00
.
75,000,000.00
.....
.
.
.
25,366,747.03
.
Payable January 3,1944
and
in
income
•
t
•
•
«
»
♦
•
«
•
•
•
»
$v 125,366,747.03
875,000.00
1
trend
taxes
•
.
Taxes, Interest,
etc.
«
*
.
1,594,694,072.48
.;.
•
4,397,109:15
2,108,504.22
%
112,333.67
.
Other Liabilities
...........
.
.
1,996,170.55
in
ih:
$1,728,824,975.5 6
and
raised.
this
1,495,876.35
.
ex¬
imposed
were
in
.
unmis¬
excise
were
old taxes
.
excess
was
new
.
Less Amount in Portfolio
were numer¬
upward
...
Acceptances Outstanding.
1918.
evident
was
There
but
v
class
•r:
Securicifs in the above
statement
described in the annual report to
ar?
carried in accordance with the method
stockholders, dated January 14, 1943. Assets
stance,
luxury items, for in¬
the 10 per cent tax on
carried
frames
$297,799,420.20 of United States Government deposits, and for other
on
over
$10,
trunks
valises over $25, um¬
brellas over
$4,- men's neckties
over
$2, and many others.
In¬
over
this period were to a large extent
the result of
the various other
were
Municipal Securities %
picture
•
Fiscal Policies
The
State and
Dividend
1917
changes in definitions and
emptions
bad government pol¬
v
362,407,441.55
from
income
profits taxes.
effects
\
.••••••.«
Undivided Profits•.
Income
exempt
per
trend
same
were
a
950,441,228.19
Surplus
1918,
$10,000-$20,000 bracket was taxed
1 per cent in 1916, 8 per cent in
can
as
•
Capital
1917.
of
Act
was
in
uncertainty
•
•
on
in
and 1918 the exemption was low¬
ered to incomes under $5,000. The
the
icy.'
*
LIABILITIES
income ex¬
Surtax rates were
$20,000
on
its
*
war.
on net
increased
also
Most
bad in
•
ex¬
1919, the rate became
and rates
as
•
$1,728,824,975.56
which was passed near the end of
February,
government policy surrounded by
be
.
Customers'Liability
raised
was
miscellaneous taxes
A
and
to 4%
themselves
them.
•
the
example, the normal tax
individual
Many
surrounding
.
increased
and
of
ties
•
policies it
during the
takable.
uncertain¬
.
Banking Premises
fully the
might
revenues
taxation
the
•
penditures. Congress bad imposed
staisfactory.
in
•
Accrued Interest and Accounts Receivable.
years.
examine
The defects lay not in the policies
but
.
nature of the effects which
under
to be of the
»
Real Estate
Surpluses ranging
$500 million pre¬
the
seems
•
.
Other Securities and Investments
dropped with expenditures
surplus of nearly $90 mil-
enues
ceeding $4,000.
magnitude.
to
peak of
a
creating a surplus of
$200 million. In fiscal 1921 rev¬
prices. Taking the disposition of
plant and materials as a whole
percentage of
recovery
is
difficult to estimate but 65-75%
:
steadily
penditures,
away
for
markets
331,870,815.99
•
Loans and Bills Discounted
$7 billion in fiscal 1920, a
after the high point in ex¬
over
year
a
remained
rose,
increased
Revenues
$5.4 billion in 1919 and
remained.
shipping
$
•
U. S. Government Securities
Thereafter it remained at the
ion.
YYX-
ASSETS
$4 billion level for several years.
but
government hands.
Cash and Due from Banks
In
level, $7 billion and then $6 bil-
ion
government
the
from
of
in
peak of nearly $19" billion.
European gov¬
form of cantonments and
•
a
property in the
Much
ernments.
remained
more
Some railroad equip¬
sold to
was
War
the
bffered
was
ment
CONDITION, DECEMBER 31, 1943
!y-..V'
1913-1923
s
Governnerrt expenditures
Yfholesale
'
in
activity
$314,653,613.74 have be;n deposited to
secure
deposits, including
$50,
creases
in the more stable
of revenue
increase
are
sources
exemplified by the
in, the tax of $1.25
per
thousand cigarettes in the lowest
price
1917
at
range
in
1916,
and $3.00 in
Tax
revenues
to
$2.05
in
1918.
for
the
war
pe-
Member of
debt,
War
billion,
Navy
Department, $2 billion, civil ex(Continued on page 74)
170
U-
on
the
160
14'
manufac¬
retailers'
.commodities
16
taxes, includ¬
tobacco,
and
1918
tween the two
and miscellaneous taxes—
stamp
■
'
taxes
lion in 1916 to $2.7 billion in 1919.
220
(1913*100)
■
1916
vided
taxes—which
"taxes
1919;, In
wealth provided 24
cent of the total while taxes
per
The total of
profits, capital
Numbers
VJhclesale
,
income, and
billion in fiscal 1916 to
$3.8 billion in 1919.
'
billion in
Total internal revenue rose
taxes.
73
the Federal Deposit Insurance Corporation
purposes.
THE COMMERCIAL & FINANCIAL CHRONICLE
74
American Policies Of Post-War
might have been loaned to pri¬
industry, were not restrictive
in nature since private industry
Readjustment
vate
X Continued from page 73)
and
only
of
over
$13
the
half
about
With
restrictive.
were
in
billion
reached nearly $25
stimulus of government
$15 billion. During
overlapping
calendar year,
pansive
was
closer to
the
policy, so often for¬
gotten in seeking for explanations
of the boom, played an important
part in stimulating business.
The
same
structure
tax
vailed in the following two years,
Even
raised, reaching 7 % in 1920. Sub¬
sequently
member-bank
loans
investments fell, as did also
rediscounts
inflow.'
the
still
changes in fiscal-policy were as¬
sociated
with
business
depres-
firms
pand.
tax
the
boom, but could not have
the
sion could
fluence
subsequent
have
1922,
of
set at their.
were
and
to
binder twine and potash
left
were
Duties had been
free.
much
not
6%
over
of total
im¬
ports in 1918, 1919 and 1920. In
1921 the figure became 11% and
stood in the vicinity of 15% dur¬
Tariff Policy
little
buys, agricultural imple¬
ments,
sharp fall in ex¬
and other aspects of
is
except
.
that he
fiscal policy.
There
level
chinaware, toys, coal-tar products
dyes. As an ostensible con¬
cession to the farmer some items
depres¬
prevented
been
the
of
penditures
which'
part
tariff
textiles
on
pre-1913
a
the< belief that part of the
that
Rates
extremely
The-*' ease
with
which
could i be borrowed con-
revenues,
and
materials
various
on
manufactured goods in the Ford-
different monetary policy is
doubtful, particularly
in view of the overwhelming in¬
by
ciple and loans and investments
money r
mon¬
ney-McCumber
Whether
of member banks continued to ex¬
government in 1920. and 1921
cannot have had anything but an
unfavorable effect.
These sharp
these
meat, wool and; sugar, in
the Emergency Tariff of 1921 and
corn,
that laces
made much headway against the in general paid 90%. Junk jew¬
continued
government spending, elry paid 80%. Among other items
assuming that the latter was in¬ which received benefits under the
dependent of the monetary policy. Act were iron and steel products,
heavily involved in the
of
of
interests
farm
floundering for some remedy for
low and falling prices served to
increase
rates
first
on
wheat,
'
:■■
and
war
then
of
capital market. The "Borrow and
Buy" policy was retained in prin¬
fiscal
at¬
gold
.
the
if
adopted - sooner,
might have reduced the intensity
Even after
therefore, it seems likely
policy had some ex¬
pansive effects. But the sharp de¬
cline in the net expansive impact
anced,
that
is
,
measures,
government
the
ended
war
was
though the budget was bal¬
latter
V
'
evaluation
An
immediately
described: easy money.
the
tariff policy as a factor in read-! wages, will be father reluctant to
justment immediately /after the buy goods whose purchase can be
war
since the moderate rates of deferred.. All
history attests that
the tariff of 1913 prevailed until a crisis of this
kind, if the govern¬
1921. Unlike the situation during ment does not
intervene, will be
the Civil War no tariff changes
accompanied by a period of fall¬
were made while the war was on.
ing prices. This discouraging of
A combination of pressure by in¬ industrial venture on
the part of
dustries created and protected by employers
tends
to
unemploy¬
etary policies is a large and con¬
troversial
subject.
Restrictive
of 1920-21.
policy
Monetary
but
tributable partly to the large
following the war can readily be
commodity tax rev¬
remained about the same.
and
enues
to
seems
Monetary Policy
coming
The proportions of in¬
until 1921.
come
policy
and the depression
pre¬
year
easy money
expenditures, combined with
the rapid relaxation of controls,
help explain the continued rise in
prices in 1919 and 1920. The sub¬
sequent sharp fall and moderate
growth in revenues can share the
blame for the decline in- prices
fiscal
the next Revenue Act not
in November 1919, that the
policy was abandoned
the
rediscount
rate
was
a
and
Fiscal
years.
of
1919, it will be recalled, business
was very active,
It seems likely
that
war,
the
and
i
it
It
the
after
nob
played some parti in the immedi¬
ate post-war boom and a major
part in the subsequent depression.
The maintenance of a high level
taxes
1919
over
until
was
:
•
have
following
likely that the initial ex¬
seems
gradually reduced
was
deficit
a
could borrow from the banks.
debt which
billion in 1919
public
The
sion.
penditures $7 billion. Practically
all of the $19 billion of expendi¬
tures
were
therefore expansive
Thursday, January 6, 1944
be
said
underemployment, and
to a delay in getting the industrial
system organized to meet the de¬
mands
of peace.
In addition, if
the government furnished no
plan,
there
These tariff changes were
:
decline
the
after
of
.
that
or
into
no
the
laborers
will
employment without
be.
knowledge, skill, and
training which they now possess
being wasted.
t
"In most
sion of
be
too, the
cases,
plant to
a
dependent
new
conver¬
ital.
This cannot be obtained
less
there
is
plant '.will
1812
FOUNDED
and
pay:;'
the! lines
of production into
they go are properly ap-.
portioned to each other, there is
which
of financial success^
assurance
was
they
make
demand
a
of
THE PENNSYLVANIA COMPANY!
INSURANCES
FOR
v
Let
•
State, County & Municipal Securities
Other Investment Securities
•
.
••
First Mortgages
Owned
Interest Accrued
Bank
.
.
.
.
•
.
.
•
.
.
.
made
14,231,294.57
•
-
Customers1 Acceptance
Liability
«
1,489,984.46
•
•
•
;•
.
•
.
•
«
♦
•
•
•
1,890,120.93
»
-•
1,492,466.63
«
•
'•
V
'
0
i*:'
:".'v
i
.'-v
...
'
-
7
;
M
\V
r-'. *
.
'
:';i\ >/..
•;
•
it
the
end
(
be
is
#
;
;
;
.
;
.
«
.
s
,
•
$10,000,000.00
Surplus
•
•
•
•
•
•
«
t
*
•
»
•
15,000,000.00
.
•
•
•
•
Undivided Profits
.
.
•
.
.
•
•
Contingencies
Reserved for Taxes and
Dividend
.
.
.
Expenses
•
/
•
2,680,526.75
;.
•
•
•
.
.
*
least
the
Unearned Interest
•
g 400,000.00
•
■
•
•
:v
,■
United States
All Other
•
.
.
.
Acceptances
Miscellaneous Liabilities
Deposits
v
.
.
•
.
»
valued
$20
canceled.
and
341,295.21
125,772.62
•
.
.
.
•
.
.
•
.
.
.
billions
forces
least,
Treasury
Deposits
.
47,028.46
$ 49,975,936.91
.
war
The
of
depression
primary
from
cause,
came
looked
point
of
view,
abruptness of the drop
expenditures, which expressed
itself through rapid demobiliza¬
one
wasXthe
in
renew
servicemen
of
without ade¬
provision
for
sustained
purchasing • power; and sudden
termination
of, contracts and dis-^
charge of workers without ade¬
quate
provision; for
sustained
at
MENT
calling for
from
$12
annually
This
skilled
are
leaves
are
a
them
to
it throws
look
a
to
-
depression
either
very
which
threatens
.
immediately after
after the war
or
soon
is to recognize the
fact that the post-war economy
creeping
up
the
around
and?the
war
will last for
Potentially, at
out
POLICYj
The first requisite in preventing
must
of ' employ¬
now
on
some
be
even
us
war
time.
made
is
though
economy
Provision
for
keeping
the; level; of purchasing power
and spreading it out over time,'
much
larger than the ' number
actually discharged from govern¬ People are not going to disgorge
ment service.
In view of these their savings On durable goods or
two conditions, a number of other on anything but bare necessities if
things may be expected. The host .they ..do nob have assurance that
of free laborers, all seeking em¬ their income will be maintained
at least for a reasonable period,'
ployment, means, temporarily, at
ment
433,874,819.12
•
most
skilled,
for other markets.
Letters of Credit and
at
large part of the industrial estab¬
lishments of the country without
immediate sale for their products,
709,865.83
.
Payable January 3, 1944
from
men
the
to
1,471,048.78
,
The
quate
be
«
.
to
forecast
tion
materials
•
the
true.
from
men
fail
to
Government contracts
'
Reserved for
War, in
of the govern¬
discharge
and
today.
advice of the
authors of this report and of other
reports was .not taken and, as we
all know, after but a brief respite,
reorganization of the indus¬
trial
system for peace ; to the
simple and obvious system of
natural liberty. But note what is
involved in this: Four or five mil¬
to
'
Capital Stock
to
army
true
to an end, the
came
the simple theory
upon
very
creation
of ' purchasing
power
" j
to be through private enterprise.
turned loose without employment
REQUISITES OF A READJUSTor
assured means of livelihood.'
JV
.
Civil
slight,
holds
war
is to be handled
the
of
With
slight, changes
this report made to the ; United
States government during the last
.
handled in this country
was
lion
->■
•
-
war a report
United r States
the
LIABILITIES
-.i
•'
system
munition contracts and then leave
1,669,591.54
•
the
"If the problem
the
125,772.62
•
the: Jast
that the function
$464,650,356.77
.
easily
can
upon
trial
England after the Boer War, and
in
almost
every
country after
every nineteenth century war, it
932,470.87
'
Miscellaneous Assets
which-require
which
portunities, for the profits of such
depressive; tariff policy
to
at
102,337,471.80
'
•
*
•
.
.
concerns
converson, or
find for themselves industrial op¬
government had this to say about
the readjustment problem: / i:
ment
Other Real Estate
interest of
y
5,749,400.07
#
•
a
having the rest of the indus¬
occupied in making
profits and the people, busied with
earning wages."
v;
;
' \?
>
will
Buildings and Equipment
to avoid these costs!
plan, too, is for the best
necessary
establishments depend upon their
sales and their sales are contigent
During
206,009,868.08
•
-
»
.
is
as
—largely neutral.
$128,721,915.20
•
#
i'-f*
•:•
.
these post-World
no
as
Commercial and Collateral Loans
to be .serious
depress jive; fiscal policy—ex¬
pansive for a short time and then
•
.
:
.
•
*
which will pay
sure
depressive; monetary policy—ex¬
pansive for a little longer time
.•••••
•
pe¬
ard
1943
31,
DECEMBER
;
con¬
judg¬
manufac¬
waste, duplication, and a long
period of delay. A concerted plan
Such
and then
U. S. Government Securities
Readjustment best, there is
sive; contract termination — de¬
pressive; disposition of materials
and plant—neutral tending tow¬
RESOURCES
Cash and Due from Banks
But, if the
Several
industrial opening
of
array
policies
the
riod of transition tries to find the
to their economic
effects: demobilization — depres¬
Philadelphia
OF
us
of
turers, each of whom in this
prosperity of 1922 and 1923.
World War
War
AS
point
have helped
may
ment
Policies Following the First
•
STATEMENT
they
view,
Consequences
GRANTING ANNUITIES
AND
LIVES
ON
short-term
for
each
for
version is to be left to the
in the
the
If
only a few
plants were to be converted, such
assurance
would be easy. If all
war
plants are to be converted
positive part in that de-r
a
un¬
that
assurance
had
From
will
uses
borrowed cap¬
upon
underway and can therefore have
no
got
great
a
other's products.
cline.
the
that
assurance
deal of the
made
1920
is
plants used to produce war sup¬
plies will be converted to peace,
uses without a great deal of waste,
ing the following three years.
on
and
ment
383,898,882.21
,650,356.77
a.
host
of
men
and
up
women
social
considerations
will
United
at
States
Government
$96,998,519.99 in
obligations
and
securities
other
!
Trust
Funds and Government, State and Municipal Deposits, as required by
law,
,
.7.;.'
■
President
MIMIIR
PIDIRAL
DIROIIT
INIURANCI
CORPORATION
•
MEMBER
PIDIRAj.
RIIIRVI
Since
probably make it necessary to de-?
mobilize the armed forces rapidly
and terminate the major part of
The uncertainty about pur¬
chase of war wares and markets
carried
the above statement are pledged to secure
WM. FULTON KURTZ
any rate, a glut of the labor mar¬
ket.
IYIT1M
leads
the
to
caution
on
the
part
of
war
around
for
a
chance
which
ment, or who may expect lower
solution
stantial
is
to
provide
sub¬
discharge
payments
to
servicemen and dismissal or lay¬
will
promise the largest volume of
profits, but the uncertainty at¬
tending so colossal a disturbance
will require caution. The laborers
who have no immediate employ-
production immediately the
best
of industry. Those
of the managers whose factories
have become idle will be looking
managers
off
wages
to
war
workers,
both
spread over., say, a six-month
period if necessary; and, in ad¬
dition to this, speedy and adeouate advance payments should
>
be made to wrar contractors.
The
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
dismissal wages and layoff should
be allowable as expenses in con-'
proceedings. In
the money will be dis¬
these ways
bursed
lished
cries
no
waste, and
of
fear,
;!
\ In the matter of disposing of
plant and materials, the policy of
•orderly marketing through pri¬
vate
.
outlets
is
i
desirable
and /the
only added suggestion is that un¬
certainty be dispelled through an
early statement of-policy,
%
/
The possibility—and the danger
y
—of
excessive boom right
the war does not alter these
some
pf
A
retire
con¬
continuance of
was
Jan.
was
for
1944,
2,
due
and
money
new
f
necessary, and the need for such
controls may be aggravated by a
purposes.,
gradual as opposed' to
■fall
in
but
government
that
would
expenditures,
be
.running the risk of
better
in
purchasing power.
point in bringing on
.true
that private
boom.
It is
Brothers,
Street, New York City, members
Exchange,
Paul
announce
that
has
admitted
the slack, but with the
pression—and
different and
out of
us
that
been
Mr.Manheim's
de¬
a
Manheim
E.
The
into
the
is
will
be
sharply
-
for
cur¬
That is when business will
tailed.
its
long step back toward,
and partly into, the realm of eco¬
nomic reality. When Japan is de-
Almost
lieve
or
all business
men
still be¬
that
Business Survival
important^
the Gov¬
In this country the test of busi¬
ness
the
efficiency has always been
ability to survive. When a
business
has
become
too
ineffi¬
cient to meet successfully the end¬
less challenges of its competitors
it
has
either
absorbed,
been
or gone
liquidated,
or
into insolvency.
The records which best reflect the
ousinbss^activity.
experiencing !a busi¬
are
we
individual
they are engaged in
competitive activities, but in real¬
ity in nearly all cases the nature
of
their
competition has been
greatly changed.
in
kind
every
Now
that
have to stop being dis¬
criminating. They buy what they
want, and pay what they must.
huge amounts, and it
has paid whatever
prices were
necessary
to
obtain speed and
quantity. Its payments have been
so
huge that they have affected
the
won,
Government
circulation
buyers
customer, and that was
It has bought goods and
services
discrimi¬
values at the lowest prices.
During war-time booms all that
is changed because Government
purchasing puts so much money
ernment.
When, the
which
(Continued
on page
76)
.
admission
=
to
=—
icle" of Dec. 23.
experience of the Civil
War and
general
a
as
Germany
of
munitions
take
reality.
goods and serv¬
keenly competi¬
in
partnership was previously re¬
ported in the "Financial Chron¬
is
quite
a
difficult mat¬
more
with
war
of the New York Stock
jbe left, not with the problem of partner in their firm.
problem of pulling
economic
in
best
'
have had only one
ness
one
long step babk toward conditions
William
1
shall take at least
we
demands
Lehman
are not discussing the
longer term
.problem here—but if government
expenditures are allowed to drop
abruptly private enterprise will
up
1944
of
Manheim As Partner
enterprise may
the slack—w£
be able to take up
taking
in
we
nating buyers seek to obtain the
except
scarce
sold
markets
are
tive
During these past two war years
large sections of American busi¬
By far the most important busi¬
prospect for next year is that
Lehman Bros^ Admit
depression
a
a
no
become
money.
ness
that
previous
our
In normal times
ices
his¬
has
in
time prosperities.
the supply.
far
in
thing
than
There is
income
before
ever
Text of Gen. Ayres' Address
$317,860,000.
was
sudden drop
a
in order to prevent
1944, the total
outstanding
3,
national
of that sort
had
war booms it is
different in character from peace¬
As a result there have
developed shortages of labor and
tory, Gen. Ayres stated that the of housing, of materials and of
coming year also will be a boom fabricating capacity, of transporta¬
tion and of fuel. - Almost every¬
year for business.
amount of debentures
abrupt
an
Jan.
of
As
and
greater than
exceeding in intensity
ever
history.^ Like all
(Continued from page 58)
that
tion
like amount of debentures
a
becoming
$9,655,000
wartime. controls will be
our
concluded dur¬
proceeds
after
clusions.
an
was
period
have
shortages of manpower will feated the demands for munitions
ing December by Charles R. Dunn, no longer be major problems." will almost cease, and then we
New York, fiscal agent for the Regarding
wages, he said
this shall take our second long step.
banks. The financing consisted of same situation is
likely to pre¬
For
more
than
three
years
$31,725,000
0.90%
Consolidated vail when "there will almost American
industry has been liv¬
debentures dated Jan. 3, 1944 and surely come a sharp decrease in
ing in an artificial atmosphere,
due Oct. 2, 1944. In addition the overtime
payments, and probably, and during the past two years
agent placed privately an issue of but not surely, a levelling off in
that
has
been
largely true of
$17,000,000
0.75%
Consolidated the rates of base payments."
almost all kinds of business. The
debentures, dated Dec. 30, 1943
Saying that in a business sense chief characteristic of the period
and maturing May 1, 1944.
Both 1943 "has been our
greatest boom has been that the demand for
issues were placed at par. Of the
year," with employment, produc¬ almost everything ■ has exceeded
$39,070,000
used to
of
nor
extravagance.
Credit1 Banks
boom
any
Prospects For Business In 1944
offering of deben¬
tures for the Federal Intermediate
estab¬
channels — there
private
be
need
A successful
through
mainlyv
ness
FIG Banks Place Debs.
termination
tract
75
the World War demon¬
ter.
SAYS", Second Series, 1871-2, pp.
491-492.
(London, Paris and New
York: Cassell, Petter, and Galpin, 1872).
V V:
strates the folly of a government
policy which is based on the as¬
sumption that the post-war read¬
justment beginsr with the peace
and
the
that
with the
war
*
Benedict
ends
economy
armistice.
Paxson
HISTORY
STATES
THE
SINCE
WAR," Vol. I,
THE
:
"A
"READINGS
ICS OF
The
•
•
Wells, "The Recent
Industrial, and Com¬
NATIONAL BANK
IN
WAR",
Organized l8o3
ECONOM¬
THE
635.
p.
(Chicago:
University of Chicago Press,
A.
Financial,
•
Clark, Walton H.
Harold
G.
Moulton,
Hamilton,
CIVIL
:
Macmillan, 1917).
David
JL JLlJLv
•
Maurice
J.
UNITED
56. (New York:
p.
•
and ' Robert
Wilson, "DEMOBILIZA¬
TION", pp. 153, 143. (New Haven:
Yale University Press, 1921). : •:
Oberholtzer,
OF
•
Forrest
.
Quotations
t
Ellis
Crowell
•>
1918).
The quotation is from
mercial Experience of the United
confidential
States", in "COBDEN CLUB ES-
States
"a
report to the United
government".
December 31, 1943
f
•;
s. '
RESOURCES
Fidelity-Philadelphia
Cash and due from Banks
;
Organized 1866
~
Statement of Condition, December 31,1943
'•%
J'[
<
*
Othe* Securities
r \
;i■•
Cash
'v
on
Loans.
I^3*W:assets
.
...y
. ,
,
*
J
yU. S. Government Securities
•
•
•
.
•
..
.
•*:••••
:
•
•
'
......
Accrued Interest Receivable
.•.'
-
75,505,095.31
.
Customers
■
•
•
•
•
f
...
.
.
.
Mortgages Owned'. .".
•r
Investment in
.
1,043,506.00
$768,390,934.11
v
2,582,478.47
.......
Fidelity Building Corporation
LIABILITIES
.
V' 3,182,342.95
:
;
.
Accrued Interest Receivable
■
.
r
\ ">■:
.».
y,.
...
Other Assets
.
.
.
.
.
v
.
.
.
«.;•
y ;
'
■
.
Surplus
V
46.3,106.55
.
^^
,
.
.
»
.
i
H; Surplus.'
Undivided.Profits*.
Reserve for
*.:$6,700,000.00; .,:
.
-11-000,000.00 -C
\
.
»
.
i
.
«
.
» .
Contingencies,fete.
.
>.
v
.
•
■
y;3,415,745.52
*
..,
Reserve for Interest, Jaxes^etc...
,
.
.
Other -Liabilitiesf
.
.
United. States
Other
Deposits
.
....
.
vv'v
137,157,746.46
.
to secure
and other securities carried in the above
purposes as
required by law in the
MARSHALL S. MORGAN
•
MEMBER
-
MEMBER
-----
.
.
.
.
.
.
.
.
.
.
.
14,681,251.96
...
.
.
.
.
.
3,016,856.57
.
.
.
v
v
j '::
>
3,1944)
Unearned Discount and Accrued Interest.
.
.
.
.
*
•
21,000,000.00
•
•
•
•
•»
.
• •
875,000.00
,K<:
.
164,704.06
1,382,528.45
•'
7Deposits
'7£;. United Stated Treasury
•
.
.
$89,160,372.36
*
All Other
j
V:-;
;;,.
..
.
-.■
Deposits
:
.
710,665,227.75
621,504,855.39
:L-,;:
$768,390,934.11
FEDERAL
'
'
state¬
EVAN
RANDOLPH, President
-
of $31,323,827:97.
fc,Tr«i$urer^
.
MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
RESERVE
SYSTEM
INSURANCE
'
Pl&iladelpkia» Pa.
325 Chestnut Street
*
FEDERAL
DEPOSIT
sum
KENNETH G. LE FEVRE
President.
135 South' Broad Street
'
.
;
Government, State and Municipal deposits,Clearing House
Exchanges, and for fiduciary
;
. • •.
...
Reserve for Contingencies
^
United States Government obligations
pledged
.
.
$179,010,014.90
■
ment are
........
%v:-V;
•Acceptances
:
8,450.00
19,369,223.53
>;
......
^
Deposits
-.465,462.00
•
'
-
.
.893,387.39
.
.
.
.
Dividend (Payable Jan.
LIABILITIES
;
.
14,000,000.00
;
2,605,365.32
V
i
u
Capital
$
•
.
«
.
109,013.28
S--; v-s^KKJv'-viv.r:j$179,010,014.90 ;v|
-
Undivided Profits
:
243,178.11
.,
.
.
745,267.70
"
"
.
«...
Cash and Transient Collections.,:
;
Capital Stock
.
v
Prepaid Taxes and Expenses.,.
•
77
v
\
.-y 3; i . f.:. /. ;> .y 2,771,020.65 y
Vaults, Furnitureand Fixtures1:
. V
.')w.?.
1,187,570.49
••.
2,216,279.44
.
-
Real Estate Owned
'
2,200,000.00
,
.
'
........
-
'
CORP.ORAfiON
-v—
'4-
'
d "
■
:
'*
•
'
•
■
,
■
30,551,508.93
92,136,574.29
•
•
Liability Account of Acceptances.
State, County • and -Municipal Securities :y,> .■€ 6,723,558.06
Other Investments'.
>>>..
16,936,483.34 V
I
1
.,
13,591,981.47
.
28,536,573.27
♦
Investments:* *#
'
•
v",-
431,727,627.03
,
11'
$40,024,326.72
•
.
.
...M.
. 4 . ,
^
Loans and Discounts
7
Wfc
$194,923,456.95
•
.
Handan^ due from Banks..-.
,...
^
jj
,v
•
»
State, County and Municipal Securities
*-
\
v
V: 7 ':r
.......
«
U. S. Government Securities
Trust Company*
\.
.
'
1
THE COMMERCIAL & FINANCIAL CHRONICLE
76
also important short¬
in whole industries, as for
example, in nearly every kind of
transportation.
These shortages
are growing more acute as large
There 'are,
years,
ages
have
Thursday, January 6, 1944
and most of the increases
in the prices of food.striving to secure
(Continued from page 75)
.
even higher prices for their prod¬
degrees of business competition | tions contracts have been comucts, and if they - are successful
'which have prevailed at different pleted.
Up to the present time numbers of men and women are the cost of living will surely move
times in our history are those of j nearly all such planning has been drawn off into the armed serv¬
upward again. The present pros¬
the
numbers
and
liabilities
of i general
rather
than
specific, ices. Probably this stringency of pects .are that the trend of retail
commercial
failures,
We
have There have been many meetings the labor
supply will continue prices will be, a rising one in 1944,
such records covering nearly 90 and conferences, many, notes and until
Germany
is, defeated,
It but it does not appear likely that
years, and they show that three some
memorandums, but very seems likely that as soon as that the rate of increase will be nearly
times in that span of years busi¬ 'few
blueprints,» -and almost no happens there will follow so con¬ as rapid as it was in the
period
ness
failures have nearly disap¬ working models.f
v vx
siderable a decrease in the de¬ of the first World War.
Prospects For Business In I ©44
''
-
-
peared.
This
declined
They
in
War,
to
zero
fourth years
and
third
the
almost
of
They
fell to an
even lower level in the period of
the first World War.
Now they
Civil
the
have
There
dropped still lower in 1943.
have been no peace-time
in that period of almost a
century in which the numbers of
business failures have been even
years
comparably as few as in those war
The evidence is clear that
years.
time
the
is
ning committees to
cases.
It
is
all plan¬
for
time, for
the
mand for munitions and ships that
get down to
of manpower will
longer be major problems,
shortages
manu¬
facturing
companies to make
working models of products they
hope to market when peace re¬
turns, and to find out whether
they will- really work satisfac¬
torily,
and whether they
can
probably be sold in highly com¬
petitive markets. Post-war plan¬
ning should become post-war pre¬
paredness.
Our industries have
successfully provided munitions to
equip our fighting forces.
The
armed services call that pari of
our war effort the problem of in¬
A
in
artificial
an
similar
comment
1
When\ wholesale
rise
prices
the process
like
fast
and
far
and
wonder
we
X
■
In 1944
■
it
•
.
-a
Politics,.X,'
,
shall have
we
national
a
and elect ai
President.
That fact complicates
the
problem of attempting
to
estimate the business probabilities
of a year in which we and our
allies
campaign
shall
be'victorious
in
one
of the two
great wars we are wag¬
ing, and in which, we might win
the other
also.
war
The
business
records of years in which we have
held presidential elections do not
call
inflation, and. in times
these
■
political
retail
we
•
.
x
aid
whether
greatly in trying to esti¬
us
to happen, and if mate the immediate effects of
not why not.
We have in this such political contests on busi¬
There
has 1 been a: steady
and
ness developments.
;.
rapid advance in the wage pay¬ Country the materials of inflation,
and they consist, of the combina¬
Records of business in election
ments of industrial- workers for
tion of plentiful
money
and a years stretching back for over a
more than two years.
It has re¬
Many prices century indicate that the nomina¬
sulted * in 4 part" from
increased scarcity of goods.
have risen, but not enough to con¬ tions are likely to be regarded by
rates
of pay,
and partly from
stitute what economists call in¬ business
sentiment
as
being of
greater amounts of overtime.
It
seems
likely that
the upward flation. Economics* is a science of more importance than the elec-;
human behavior, and the reason tions themselves. It has generally
trend
will
continue
until
Ger¬
why we have not had real infla¬ been true that security values and
many is defeated, and this proba¬
tion is that our people have, not business activity have had declin¬
bility is emphasized by the great
behaved as the
textbooks
said
ing trends in the early months of
increase in pay recently granted
years,'; and,- advancing
to the coal miners. Following the they would under prevailing con-; .election
can
business operates
atmosphere, and
that is why the most important
prospect for 1944 is that in the
coming year a long step will be itial equipment. If it is done in
taken back into the realm of eco¬ a hurry, as it always has been in
nomic. reality. ;
'•,!■
,':x ;xlj our military history, initial equip¬
ment requires an all-out indus¬
There are records in Washing¬
in times of war,
somewhat
no
prospects are that we shall not
experience real inflation in 1944;
been
The farmers are
be
made
about: wage
rates.
ending of large scale fighting in
Europe there will almost surely
qome a sharp decrease in
over¬
time payments, and probably, but
not surely, a levelling off in the
rates of base payments.
that
is
ditions
going
of increased incomes
and
in
trends
decreased amounts of goods.
the -"last
two
quarters.
There is little support for the old
belief
that
election 1 years
are
Americans have not questioned
trial effort.
showing the numbers of manthe fundamental goodness of their likely to be periods of poor busi¬
hours required in different plants
Following
initial
equipment
money.
They have not gone on ness. In the case of 1944 the elec¬
comes
the
second
to produce the same sorts of ships there
phase
unrestrained sprees of buying and tion campaign
and its outcome
and weapons, planes, and engines. which the services term that of
hoarding/ Most of them have not will no doubt affect business ac¬
maintenance. That requires a flow Nf-y'jv-.;'Prices
The differences in efficiency are
patronized black markets.
They tivity, but they can hardly exer¬
Wholesale prices have advanced have.not been inflation-minded. cise important; immediate influ¬
almost
incredible.
Many plants of munitions adequate to keep
the armies, and the naval forces, only moderately durng the past
produce several times as much
They have instead bought large ence, The major influence will be
per worker as do others making and the air forces, supplied with two years. They are mostly con¬ totals of war bonds.' They have exercised by the course of warthe same products. The Govern¬ everything they need.
We are trolled by Government restric¬ accumulated astonishing volumes expenditures.
'
/XX;-X/X .'V^xx
ment buys the outputs of the ef¬ entering that second phase now. It tions.
Probably the controls will of cash -savings, and they have
Transportation
1
ficient makers and those of the calls for a large output of muni¬ continue to be effective next year, paid down their debts with
unpre¬
There
is
clear
prospect that
inefficient ones alike because it tions and supplies, but not nearly although some advances must be cedented rapidity.
No one can 1944 will be our
toughest trans¬
has to have the munitions. Peace- as large a one as that demanded expected. Coal prices will prob¬ guarantee that as a people we
portation year. « Our automobiles
tifcie competition has no customers by
initial
equipment.
Already ably have to be advanced as a shall continue to act in that re¬
are getting older, and their tires
like that, and before long we are some Government plants are result of the increase in wages strained and prudent fashion, but
going to make a partial return to being closed down, and there will recently granted to the miners. as long as we do act that way we are getting thinner, and there is
be
progressively
more
as
our More serious increases are to be shall
avoid real inflation.
peace-time competition.
The little prospect that new replaceproblems of military supplies be¬ expected if the farmers are suc¬
?
Peace Work
come those of maintenance rather
cessful in their campaign to se¬
Most large businesses and many than
those of initial equipment. cure higher prices for agricultural
smaller ones, have already done Millions of war workers are a
products. Even if they are suc¬
something about post-war plan¬ good deal nearer to returning to cessful, it seems unlikely that
ning. v They are represented on peace-time activities than are the there will be in 1944 serious ad¬
community, or state, or national men in the fighting forces.
vances
in
the general level
of
"organizations that are making plans
wholesale prices.
Manpower and Wages
for post-war^ activities.
In very
Prospects for retaiL prices that
COMPANY
many cases there is in addition a
Shortages of manpower have
enter into the cost of living are
plant committee charged with the been officially classified as being
duty, of developing products to be critical in 70 cities, and they are less reassuring. They have risen
ton
...
BROOKLYN TRUST
^xx
XxXXX/:
made and marketed
when
muni-
serious
in
a
MAIN
still
larger number.
considerably during the past two
A
OFFICE:
177 Montague
NEW YORK OFFICE:
26 Broad Street
Street
Brooklyn, N. Y.
DIRECTORS
;X
•
XV
INCORPORATED
THOMAS W. LAM ONT
Chairman
fiCi
X
.■
X
RESOURCES
NEW YORK ■ •XS/
Cash
It. C.
LEFFING WELL
Condensed Statement of Condition December 31,1943
GEORGE WHITNEY
.■
•
President
Cash
on
Hand and Due
from Banks
State and
$131,528,531:58
.
Direct and
ARTHUR M. ANDERSON
of Morgan Orenfell
I. C. R ATKIN
H. P.
«
.
DAVISON*
Vice-,President,,
.
Co.
.;
Limited)'
Y
and
Acceptances
on
• • • •«
7 Total Assets
"x/x
MORGAN*
<
ALFRED P. SLOAN JR.
Motors *
Corporation
TAPPAN STANNARD
President Keniiccott
Copper Corporation
JAMES L. THOMSON
Finance
..........
Accounts
5,331,284.42
(fl« l 2,473,746.69
.«
9,182,600.00
*
N) 8,17},908.54
.
<
,
«
4,950,930.60
on
Buildings
.
Bonds and
by Collateral
.
.
Mortgages^.
....
....
.
.
7,680,860.82
......
.
.
.
V
•
.
iv
•
•
>
.
,
1,371,956.60
4,230,411.84
•'•••<
X ..I 87,169.22
•
.
r
•
,
•
772,679.60
•
it
210,007,804.56
,,
LIABILITIES
!
:
$709,019,278.99
ms
*
•
»
•
Undivided Profits
....
Acceptances Outstanding and Letters of Credit
Issued .......J........,.........,.*....
Capital........
Surplus
,..........
Undivided Profits............
$20,000,000.00
1,656,991.39 :
XX' XX.',
4,278,521.03£
XxX-ri.
•
•
t
H,(
43,101624.081
& Dohme Inc.
On active service in
forces.
1,452,590.80
,
•
<
.
»
*
,*
♦»
.»
•
*
♦
s
»
654,625.38
•
.
.
•
i
•
194,151,642.74
#
»
•
164,000.00
»
.
s
*
634,945.64
.
*
•
«
.
•
/»
.
■«... •
*
payable January 3, 1944
As
reserve
for
,
taxes, etc
required by law, United States Government and
-State
pledged to qualify for fiduciary powers, to secure
public monies as required by law, and for other purposes,
and-Municipal bonds carried at $29,452,863.71 are
to secure public deposits and for other purposes.
pledged
System
Member Federal Deposit Insurance Corporation
One
of the Oldest Trust Companies in the United States
MEMBER FEDERAL RESERVE SYSTEM
January 4, U44.
4,750,000.00
.
210,007,80456
are
Member Federal Reserve
8,200,000.00
;
..
$758,056,415,49
United States Government securities carried at $112,360,323.80 in the above
statement
i
♦,
.
Other Liabilities,
i
,
•
Deposits
t
•
»
*
Dividend
"...
20,000,000.00
3,101,624.08
Reserves
Company
the armed
'•
Other Real Estate
Payable and Miscellaneous
Liabilities
Total Liabilities
JOHN S. ZINSSER
*
.
.
LIABILITIES ; X, ,;x''.\
$678,964,370.77
Official Checks Outstanding..»■. 30,054,908.22
.... ....... .
Committee Hartford Fire
President Sharp
•
•
.
Insurance
.
.
$758,056,415.49
X''
x
Deposits
Chairman
,
120,377,755.76
i,
V-X
Vice-President
E.
#
•
f
W. A. MITCHELL
General
.
•
THOMAS S. LAMONT*
Chairman
•
V
Other Resources
4,278,521.03
......................
•
.
Bank
2,282,155.41
Letters of Credit
.......»• • • • • •
•
•
.
Loans
4,000,000.00
Liability of Customers
•
$ 45,374,500.47
|V«
Acceptances
Bills Purchased
100,955,227.68
Accrued Interest, Accounts Receivableetc.*
•
.
by Collateral
Time Loans Secured
9,408,727.91
*
♦
»
V
.
•
»
Call Loans and Bankers
XX/
'
v:
.
,
»
■.<
Demand Loans Secured
1,200,000.00
.......
Banking House
CHARLES D. DICKEY
JUNIUS S.
Bank.
{including Shares Xr
Loans and Bills Purchased
Vice-President
.
and Notes
Stock of the Federal Reserve
Other Bonds and Securities
Vice-President
487,615,089.05
16,788,162.83
Fully Guaranteed
State and Municipal Bonds
Vice-President
.
,
,
Municipal Bonds
Other Securities
United States Government Securities,
HENRY C. ALEXANDER
.
.
U. S. Government Securities
ASSETS
J'-.
Hand and due from Federal Reserve
on
Bank and Other Banks
Chairman Executive Committee
■
x
York, N.Y.
Summary of Statement at the Close of Business, Dec. 31,1943
P.MORGAN & CO.
J.
V';'X.
New
-
li Hi -i
?
11 ii ii i-ii.-i -h\ hi
AND FEDERAL DEPOSIT INSURANCE CORPORATION
J
<f'|
;1
r?w v,sw:i jut
\
;.
''
'
'
.Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
merits will become available next
As the numbers !of useable
year.
automobiles
dens
must
cities
No
be
by
which
decline, greater bur¬
over
and
already
are
less
taken
buses
serious
the
in
street
cars
overcrowded.
the
are
problems
of transportation by trucks.
The
volume of freight carried by in¬
ter-city trucks has
doubled
dur¬
ing this emergency and it appears
to have passed its peak and to be
declining.
'-Z
trucks
wearing
are
and replacements and repair parts
are difficult or impossible to ob¬
tain.
be allocated shortly
of Germany are
the
capacity
which they
freight
have
we
transition
and -post-war
ing
to
readjust themselves to
changed conditions, and millions
after the fall
trucks, farm im¬
struction
opportunity.
also
be
That
recon¬
periods of
to
I
Prospects for 1944
Each month of the coming year
will
find
smaller
numbers
of
forecasts during (the closing weeks
of each year. In conformity with
people engaged in War work, and
larger numbers making civilian
goods.
Even the beginnings of
transition from war to peace will
result in many injustices as some
that
individuals and business firms are
next year.
life.
lected.'''
back
from
to return to civilian
tasks and peace-time production
while others must carry on with
Transition >
will usher in the be¬
Even
•
in
times
tradition
Business
make
workers
cerning
thewriter
of
The
1943."
with Ger¬
which
railroads
or
shipyards.
our
have
be
must
done
a
mag-i
must
the
major
will
precede
come
;
which
conversions
on
later
like the business developments of
It seems
entirely likely that be¬
many
more
months have
fore
passed the railroads will be called
upon to carry great numbers of
troops and huge amounts of mu^
nitions and supplies from our east
coast ports to our Pacific ports.
Those
long hauls will tie up large
of railroad equipment.
amounts
Probably they will produce the
peak transportation demands of
the entire war period.
They are
likely to come at a time when the
other
on.
demands
on
all
forms
of
transportation will be at their
highest levels.
They may inter¬
fere materially with a good many
kinds of business activity, but if
'.
of
cost
living will almost
surely be higher .next year, and
it is not likely that the average
in
will
1944
less than
be
5%
or
and
will afford, good prep¬
aration for the greater irritations
theless they
of 1945.
to war
is a far simpler undertaking than
that from war to peace, and that
is particularly so in the field of
industry.
When war breaks out
the government tells us what to
do, and it tells the manufacturers
peace
Our
we
It
tells
are
free
to
The
us
do
that
instead
what
central purpose
likely
year
(Continued
that we shall
advance in
page 80)
;
an
on
the
IQIL
J
best insurance
accumulated
will
be
shortages.
demand
in
r''
•
we
the
has
world
whole
been
,
V•
/>
.v.-•
;
'
•
• •
this
country
for
great numbers of
automobiles; dwellings, household
furnishings,
agricultural appli¬
ances, and so on through a long,
long list of needed goods. We shall
have
great' accumulated, money
savings with which such goods
can
be bought.
More,'than that
please,
we
-
.
not
next
gfriwoft
Business Established 1818
-
purpose
do.
is
It
have
greatest business assets as
our
There
and one unified di¬
rection.
When peace breaks out
all that is changed.
The govern¬
ment no longer tells us what to
tral
of 1943.
enter the transition period will
be
There is one cen¬
what to make.
is
paredness
policy.
:
from
Conversion
than 15% above the average
more
peace-time production is the
safeguard against the hazards
and
injustices of the transition
period.
For some firms the re¬
maining time is shorter than they
think, and for others it is longer
than they hope. A policy of pre¬
they will entail con¬
uncertainty.
Never¬
1944 because
fusion
have in 1943.
probable
not
best
Probably we shall not
nificent
v
miners
.
and
job in the war so far,
they must somehow manage
to do even more in 1944 than they
is
it
but
.
The
many,:''
nitions factories
The
carried
but the
that their average in 1944 will be
more
than 10%
higher than in
Labor shortages will probably
ginning of the end. Nevertheless war work. We must expect them,
it will be only the beginning. The and be as philosophical as we can continue to be serious until Ger¬
real change-over
from the war about them. They are an in¬ many is defeated, but will de¬
economy to the
peace economy escapable part of war which is it¬ crease rapidly in importance after
that
may be expected to take place in self the most grievous of all in¬
Average weekly earnings
of
1945 and not in 1944.
Next year justices. ';''
//■' ■;:/ /jcf-:!; -/erf' ■,,
workers have increased
we
shall
have the adjustments'
Definite post-war planning that factory
and the preliminary modifications
consists of getting ready to work rapidly and steadily for two years.
have
price of coal will
surely be higher next year
advance,
allies shall
passed a along
to
the
railroads
which are already burdened to
capacity. There is where our most
important transportation problem
is located, because the railroads
are just as indispensable parts of
Our war facilities as are our mu¬
would
will
Wholesale prices will generally
developments
war
workers
rather than the operators.
comments
In 1944 we and our
other
and
than it has been this year,
increases will benefit the
to
following
be victorious in the
Eu¬
average
almost
the
ventures
possible
in
war
defeated.
his personal opinion con¬
on
be expected
the
decrease rapidly after Germany is
business
war
Bulletin
the
based
-
of
expect commentators to make
men
■
..
K permitted
•
Next year
women
trying to reenter civilian
wars
may
is ended.
Overtime payments of factory
get under way, we shall learn
how
the
government plans to
handle
its
problem of deciding
which firms shall first be given
men
the
rising trend
continue until
rope
of
ucts
and
will
plements, railroad equipment, and
household appliances.
When the
allocations of steel for such prod¬
As their carrying
declines
disappear, and
instead millions of civilians seek¬
ucts for which steel
permission to start reconversion
for peace-time production.
Such
head starts will prove extremely
out,
advantageous for the firms se¬
.
Our
direction
Among the civilian prod¬
will probably
come.
77
Brown Brothers Harriman & Co.
:
i
'
.
':
PRIVATE BANKERS
.
'//
7
;
PHILADELPHIA
BOSTON
NEW YORK
accu¬
shortages
during
the
of warfare. Our periods of
mulating
and unified
years
Statement
of Condition, December 31, 1943
'
prepared for them we may
are
we
diminish
the
•
Cash;
.
//''
In
Boom Year
business
a
been
:
sense
has
this
income
than
The
have
before
ever
coming
boom
year
duction is
in
our
Loans
history.
now
also will be a
business.
Pro¬
at or near its peak
-
increase
little
a
is defeated.
many
until
TRUST COMPANY
165
in
one
Broadway, New York
//S///;/'///"
OZZZ,
doubt
similar
prevail
in
The
of
allocation
the
in
I
-
_
—__
Other Real Estate
Mortgages
Great
on
civilian
and
the
.
929,179.15
at near capa¬
production for a long time to
4,834,199 74
101,626.64
Portfolio.
etc,
..
.,'.
.
4,732,573.10
81,078.42
.
Contingencies
1,912,216.65
$'
.
,
2,000,000 00
11,525,283.54
13,525,283-54
S167.555.691.36
Government securmrs Par Value ,$000,000 are Pledged to'Secure
..:
Public Deposits as,Required By Raw. 'uuC::, "...A,7;
ZfZZi-dZ
TARTJYERS
at.
3
*
'
■»''•>^''
* .i'
'
FACILITIES
>
'18
*
E. R. Harriman
Moreau D. Drown
Complete Facilities for Domestic
Foreign Banking
$1,249,514,078.73
$
o
LIABILITIES
Thatcher M. Brown *\V. A. Harriman
''/A
■
Deposit Accounts
Capital Stock,
55,000,000.00 -V'L
_
Undivided Profits.
LL'lv
$20,000,000.00
_
Surplus.
3
Knight Wooeley
IT. D.
Dividend
Payable Jan. 3,' 1944
Reserves, Taxes, Interest,
(less
own
held in
acceptances
/
•—
etc.
Acceptances Outstanding
-
oe
.
.
for
Purchase
Securities
:
Credit
and
Sale
g
g
^
v
m
.'
Investment Advisory Service
•
/
8
:
^
319,370.00
•
Deposits (including Official ai\d\Ckrtified
Checks Outstanding $i2,h00,388.1 g) 1,153,998,165.83
'"■■•j
j
'■■■■
.
,
$!,240.514.078.73
U. S. Government
Obligations and other securities carried at
$210,927,453,70 in the foregoing statement are deposited to
secure public funds and for other purposes required by law.
Manager?
^Charles
..
J.
.
* ;
Eliason, Jr.*
•,
f
>
»
"
*
Thomas HcCance
'
Stephen Y. Hord
Charles F. Breed
Alister C. Colouhoun
j 1676,143.40 g 3,868,722.68
-j
.
Edward Abrams
>:
1 Ij -I
•<
portfolio)
Pennington^ General Manner;*.
900,000.00
7,958,257.91
.
$4,544,866.08
Other Liabilities
.
.
8
Loans • Acceptances
o?
Ray Morris
Louis Curtis
8
and
'
7,469,562.31 $82,469,562.31
■
-
^ Prescott S. Bush
•
Commercial Letters
•
"w/
Brokers
-♦'
'Howard P: Haeder
Ernest E. Nelson
*Donald K. Walker
■""John C. West
*H. Pelham Curtis
Assistant Managers
Thomas J. McElrath
David g. Ackerman
Merritt T. Cooke
William A. Hess
■*
»'
,
5
AEowin K. Merrill
jlerbf-rt muhlert
Arthur K. Paddock
Joseph R. Kenny
Joseph C. Lucey
,
William F. Ray
Arthur R. Rowe
L. Parks Shipley
^Eugene W. Stetson, Jr.
Gale Willard
F. H. Kingsbury, jir.
"
George E, Paul, Comptroller
Harry L. Wills
Arthur B. Smith, Auditor
*Xow in Government Sendee.
Licensed
Charter Member New York
steel
in
,
4,132,782.70
21'"
face.
for
uses
have accumulated,
industry will probably
continue to operate
city
...
won we
of
3 238.560.30 $147,304,539.65
•
Interest, Expenses,
tor
2,037,000.92
Acceptances
Other Assets
diffi¬
that the authorities
shortages
'
2,819,334.76
;
,
U. S.
139,435,523.75
/: 419,793.50
;
:
;
Credits Granted
controls over
materials are
leased for other uses.
WCdMv;
$144,065,979.35
.
.
.
61,132,235.74
_
relationships
When the war with Ger¬
is
497,025.19 '
2
63,769,792.38
shall not want to
build any more Liberty ships, and
great tonnages, of steel can be re¬
many
.
Surplus
77,734,925.32
—
much.
Washington will have to
•
_
Banking Houses—-—
by
Shipbuilding now consumes more
steel than any other industrial ac¬
tivity. "
and Call Loans
Loans and Discounts
likely to constitute the most
cult problems
.
-Capital
657,728,405.67
State and Municipal Bonds
in
force.
Accrued
Reserve
.$239,375,104.84
Other Bonds and Investments:
much the
now
"
'4,405,511.48
,
-
continued next year in
same way as they are
be
.assets
Bankers' Acceptances
porate profiteering In this war
period. '
■■■ • '■ Price controls, wage and salary
controls, and controls 6over. the
allocation of materials, will prob¬
ably
.2,
.'
....
$
Less Held
•
Obligations,
Fully Guaranteed—
Direct and
1944, nor Should
they be too much regretted, for
they make a clear record that
there has been a minimum of cor¬
will
1943
U. S. Government
127%, while payments to capital
of interest and divi¬
dends have increased by 10%, or
No
■.
Acceptances
'
in the form
by about one-thirteenth as
31,
Cash and Due from Banks
/
increased
6 955,440.06
LIABILITIES
At.the close of business, December
Jq,: be -a -boom year for the
employees /rather than' for /• -the
proprietors. /The records of na¬
tional 'incdme show that during
this emergency the payments to
employees in the form of wages
have
on
Acceptances,
that
salaries
18,045,623 55
n \.z.
/41,522,247.32
iviv-p1 posrts—time
prove
and
59,531.361.82
'
CONDENSED STATEMENT OF CONDITION
likely to resemble
it will probably
Next year is
this-
>7%
Deposits—Demand
■
decline,
-
$ 36,597,481.94
,
'/'
Discounts'
and
Other Assets
:)j-;
.
' "
pens
-
,
.
.
Other Public Securities
and
Founded 1824
After that hap¬
be well sustained.
.
1
Ger¬
there is likely to be some
but it will probably be
gradual, and cushioned by con¬
tinued production
for the war
with Japan. Even after the defeat
of Germany Jhe outputs of naval
vessels and airplanes are likely to
Banks
from
8167,555-691.36
levels, but it is sure to hold up or
even
Due
Customers' Liability
.
year
for
and
Other Marketable Securities
far greater
been
Hand
u-7 7. State, Municipal
ployment, production, and nation¬
al
on
/ United States Government Securities
greatest boom year. Em¬
our
:
interferences.
•
;
ASSETS
■
•
Clearing House Association
Member Federal Reserve System
Member Federal Deposit Insurance Corporation
as
Private Bankers and subject to 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.
j
YJ/JSJSjD
I
I ♦
78
Governments''
"Our Reporter On
By S. F. PORTER
We're
the month
into
now
demand, of repur¬
of reinvestment
the market until
fiscal authorities
preparatory to the new financing.
, .And of the Fpurth War Loan
drive for $14,000,000,000 •minimum.
,
.
There's no; reason why we
should see a runaway market on the upside even if there were no
war loan hanging over us.
A booming price list doesn't make
sense under the circumstances and wouldn't be desirable from either
the investor's or the Treasury's, point of view.
But a creeping
advance is to be anticipated as the days pass...■■During the next
few weeks you should see higher prices on such issues as the 2s
of 1953/51, the favored tax-exempts, and other key bonds. . . . And,
certainly, this is no month to look for any important price reac¬
Had the market boomed during December, according to this
story, the free riders would be back again for the Fourth War Loan,
trying to catch the top on the 2*/4S. ..v But with the quiet; dull market
we've had for so long a time, they're disappointed sufficiently to
stay away.
.
.
.
.
tion.
.
.
Treasury, a sluggish market is not a
borrowing. ."/./■ '■< ■ ■•■'■
So
carry
.
has proved beyond
doubt the wisdom of buying bonds selling close
the shadow of a
to par
sound atmosphere for a major
C? ■'N.v/y:/'
cautious optimist to lift his
for good intermediate investments.
around
the
of
action
The
has arrived for a
time
the
voice and look
since November
market
and protected by an official "bottom level" for the interest
between financing. ... Those investors who followed the
urging of this observer to purchase the 2s or 2^js for the "carry"
mid-January now have an excellent profit behind them. ...
to
for special securi¬
1944 months, f . . Of
course, institutions which are eligible to enter the Fourth War
Loan have one of the best bonds in years coming up.
.
The
Those who didn't may examine the lists now
ties
want
they
the
early
to hold during the
.
.
/. '
.
simple
''
They've little to worry about until Feb. 1, when all
large-scale buying of the;-2bis by non-banking
...
point to
.investors.
;■
...
QUIET "ON PURPOSE"?
the
One of
intriguing reports going the rounds in Wall Street
and Treasury have combined
quiet''the market in recent weeks. . . .
The objective being, to quote one dealer, "to discourage the huge
numbers of free, riders who came in and undermined the 2s during
these days is that the Federal Reserve
"hold back" and "keep
to
the Third War
In short, to keep these in-and-out specu¬
January-February drive by cutting theirminimum.
'
Loary"
.
.
.
lators from disturbing the
possible profits to a
There's
no
.
.
.
question about the fact that thousands of individuals,
small
companies, brokers, etc., expected a lot more premium from
the 2s than they obtained.
Premium on the 2s has ranged around
the 3 to 6/32 mark for weeks, represents the average profit of most
speculators. V/ And considering the amounts of money they had tied
.up in the loans and bonds, that profit just wasn't enough. . . .
Exchange, investment bankers and
the
New
York
Curb, has been
formed by Edwin S, Webster, Jr.,
=
..
logical tale and
a
.
.
.
-
INSIDE THE MARKET
Substantial
decline
in
outstanding bank
Govern¬
loans against
ness
period of this month, reflecting brokers'
One broker, for instance, re¬
sales of accounts frozen until now/
.
.
Dealers
almost
this month.
stock markets.
or
Mr.
unanimous
for
outlook
the
on
other
various
busi-:
in the downtown
groups
com¬
also announced by
Perry E. Hall, a
was
Eberstadt.
partner of Morgan, Stanley & Co.,
will
head
the
committee
for
the
profession; Walter H.
Vice-President of Com¬
Sammis,
monwealth
better market
a
head
to
accountants
/
...
General feeling is the 2s of
...
appointment of five
munity
.
ports that he won't keep his clients frozen in Governments indef¬
initely for so small a profit as is obtainable on the 2s. . , . Declares
his feeling is typical of several of his friends. . . V Reyeals he will
sell before January 18, to get his clients into shape for reinvestment
either in the bond
The
Chairmen
ments looked for in the first
& Southern Corpora¬
the Public Utility Commit¬
Douglas M. Cruikshank, of
tion,
1953/51 will hit the %
tee;
Equally strong opinion around that these bonds Cruikshank-Morrison,
Inc.,
the
are worth
% with the market around this level, but "if they're V2, Real
Estate
Committee;
C.
J.
they'll get to %".
Which is the market jargon for saying bonds Wood, Executive Vice-President
rarely reach the precise price at which they belong according to of Thomas J. Lipton, Inc., the Tea
technical calculations.
The human element always shaves a bit Group, and Emil Pangal, proprie¬
premium mark.
.
.
.
.
.
.
.
.
.
from the top.and the, bottom.
As for the new 214 s, when they are opened to
-
.
.
tor of Ye Old Dutch Tavern, Com¬
'
,
trading, the feeling
'
mittee for Bars and Grills;
v
>
Again, the Vz level is being
It was stated at the Beekman
forecast by optimists, but that's on the basis of today's prices plus
Maintenance Fund headquarters
a rally plus a perfect setup. . / . And this date is too early for predic¬
tions worth anything, in the first place.
.
The 2I/4S won't be traded that numerous subscriptions had
Until after books close on the Fourth War Loan, which will be after been received in the past week,
on
these is that
February 15.
the
.
they'll be worth
.
•
.
.
•
,
although
report is that the 2*4s will be treated in
the first issue of 2^s. . . . The bonds due in
authoritative
An
same
way
as
1967/62, which
now are
be
year's high of 101.2 and
.
If
.
this
year's low of 100.3.
a
was
,.
.
will
campaign
the
not
officially until Thurs¬
started
Among these subscriptions
day.
selling at 100.12 bid, 100.14 asked, against '
The 2Ms may
turn out to be a "tap" issue, says this source. . .. With the Treas¬
ury reopening the hooks on the bonds for the next war loan
drive.
And continuing to increase this issue until the total
outstanding runs into the'many, many billions. . . .
a
...
.
consisting of
the New York Stock
of
A;"y.^'-J/y v"/■
a
partner of Kidder, Peabody &
one which explains some of the Federal
Co., to assist Beekman Hospital inReserve's indifference to giving the, market "color and life" during its
campaign to raise $160,000,
all this period of sluggishness.
And if it does permit the con¬ Ferdinand Eberstadt, Chairman of
tinuation of liberal controls on speculation, it was an extraordinarily the ' hospital's 1944 Maintenance
shrewd policy.
Fund, announced.
'■
'
It's
,
214s.
signs
A securities group,
members
drastic
that there won't be the necessity for
reason
action.. V.' /■■:'
advisable a quiet market may be to the
No matter how
,
.
...
,
.
.
Securities Group Aids
Beekman Hospital Fund
Which, the report is, fits in perfectly with the Federal Re¬
serve's plans.
And which also suggests there'll be no unusual
restrictions on bank loans or in-and-out trading this time, for
chasing by institutions which have held back on
now
because of tax factors, of "dressing" by the
,
Thursday, January 6, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
from the firm of Handy
one
& Harman,
dealers in gold, silver
and platinum.
v
.
/
.
Lazard Freres & Go.
happens—and the report is based ori judgment of the
on official information, it is said—the 2V4S will
market rather than
be
/
depressed after their initial advance by the rumors of reopening
of the books.
The same pattern which was drawn by the 2l/z%
Lazard Freres & Co., 44 Wall
tap issue would be redrawn by these bonds. . . . An initial advance,
then a reaction to the par level as the books are opened, then a slight
Street, New York City, members
advance after the closing for the second time.
Then a market of the New York Stock
Exchange,
movement in accordance with the Treasury's plans for the issue and
announce that Pierre David Weill,
with the action of the general price list at that time.
\ This
is based, it., is repeated, on a ?report circulating among Andre Meyer, Wm. Howard Schudealers now.
It is not official, but it will help you determine bart and Albert J. Hettinger, Jr.,
Admit Four Partners
...
mmmmmmmmmmmmmmmmmmmmm
.
.
.
.
.
.
...
Chartered
1799
your
investment policy on the
loan.
level.
.
.
...
in line
Bank of the
Manhattan Company
.
.
.
.
new securities. ...
rock bottom during the
have
last few
days
2V2S
of
1969/64
The 2s sold at 100.3-4/32.
with its past performance.
dropped
to
the
100
to
'.that
Altschul
100.1
has
retired
.
.
.
.
of Condition
Frank
from
These admissions to partnership
.
in Lazard Freres & Co.
were pre¬
.
reported
viously
cial
Chronicle"
in
"Finan¬
the
of Dec.
16.
H :
of December 31, 1943
as
V 4
ASSETS
Cash and Due from Banks and Bankers
U. S. Government
•
Loans and Discounts
******
,
.
10,045,180.36
******
•
•
«
»
1
<
■■„•
-
**.**,*,,
Customers'Liability for Acceptances
•
•
statement
of
december
«
391,997.78
3,402,567.65
••**•••«*.
$1,034,108,575.85
at
condition
31.
nineteen
the
close
hundred
•
«
y
...
•
1
»
•
;
«
#
•
.
U.S.GovernmentSecurities
.
.
.
$20,000,000.00
t
»
.
Loans and Discounts
20,000,000.00
Banking Premises.
10,071,867.49 $
Contingencies
,
.
,
,
Payable January 3, 1944
,
,
,
,
370,1 15,709.34
Capital
,
,
•
*
,
,
! 200,000.00
a
.
•
•
.
.
,
/
Profits
1 1,1 53,042.56
Reserves
40,165,066.81
2,978,703.70
.
.
.
,
§
a
a
a
t
Acceptances Outstanding.
.
,
«
«
*
,
,
,
59,061,624.35
,
,
2,935,855.54
,
,
4,164,214.18
.
Liabilities, Reserve for Taxes,
etc.
(
,
$1,034,108,575.85
V' *1
Deposits
490.628,294,39
.
$546,427,478.1 1
DIRECTORS
A.
BLACKMORE
V.
DAVIS
CHILDS
wiLLIAM
/
BENJAMIN F. JONES
Of the above assets $88,797,792,06
other
purposes;
are
pledged
to secure
and certain of the above deposits
are
* RICHARD K. MELLON
FRICK
B. GIVEN, JR.
WILLIAM
as
L. MELLON
LAWRENCE N. MURRAY
HENRY J. HEINZ II
HENRY a.
HUNT
public deposits and for
preferred
111
^ CHARLES LOCKHART
DAVID
t
*
IN
a.
PHILLIES
WILLIAM
C.
ROBINSON
WILLIAM M.
ROBINSON
* ALAN M. SCAIFE
WILLIAM P.SNYDER, JR.
HARRY S. WHERRETT
CURTIS
REED
MILITARY SERVIO-E
provided by law.
m t
i ;
i
•>
.,j
4,481,165.69
«<'
^
GEORGE
ROY A.
'
■'1
1 1,318,018.03
.
J
ARTHUR
Certified and Cashier's Checks
Other
'
32,500,000.00
915,263,496.40
»
•'
7,500,000.00
$
.
Surplus
400,000.00
.
.
■»■ r
.■ 11.
LIABILITIES
$ 1 22.01 4.955.70
2,011,517.89
,
.
.
.
DepOSltS
MEMBER
Member Federal Reserve System
i!
,
f
50,071,867.49
Special Dividend Payable January 3, 1944
1
■;
business
of
$546,427,478.1 1
Dividend
j
r.''•*
i
Undivided
Investments.
and
1
Undivided Profits
Reserve for
•
forty-three
RESOURCES
Cash and Due from Banks
Other Bonds
LIABILITIES
Surplus
•■
M.:' ' ■; ."■
2,368,378.23
(Lees Anticipations)
'
Capital
H
!.
..
6,116,568.85
«
■
13,383,449.44
Other Real Estate Owned.
««
PITTSBURGH
281,487,016.62 f
•
.
Mortgages
Banking Houses Owned
■
1
16,734,781.10
•
•
National Bank
Mellon
433,851,333.48
I
Real Estate
Other Assets
266,327,302.34
.
•
...
$
•
,
Obligations, Direct & Guaranteed
Other Public Securities
Other Securities
•
Member Federal Deposit Insurance
FEDERAL
DEPOSIT
Corporation
«
f, £
mmmmmmmmmmmmmmmmmmmmm
the
a
...
Condensed Statement
Mr.
7V:/;,//'
firm.
With new 2Vzs coming out
par-plus price, the general list couldn't
sink from that point.
This is technical reasoning, but with a
market at this stage, technical factors are in control.
(Continued on page 79)
•
and with the 2s assured of
general
as
and
The market generally held
...
admitted
been
partners
"Rock bottom," that is, in light of the forthcoming
.
the
For
to
receded
market
The
of December.
/
INSURANCE CORPORATION
M.
YOHE
■
Volume
159
,
Our
;
*
:
THE: COMMERCIAL & FINANCIAL CHRONICLE
Number7/424,4.
Split Between Treasury Aiiil Internal Revenue
Bureaus Urged By Rep. Knutson
Reporter's
79
Our Reporter On "Governments"
(Continued from page 78)
THE RECORD
Separation of the Bureau of Internal Revenue from the Treasury
Looking back over the record" of 1943, it is apparent that the
Department making it an independent agency was proposed on
Treasury and the Federal Reserve handled the bond and money
value. ■'
■■
'; Jan. 4 bye Representative Knutson' (Rep., Minn.).
7
markets in superb fashion, ...
Public
Mr. Knutson said that he plans to ask the House Ways and Means
offering, should come
within-48 hours of the- award, de¬ Committee, of which he is ranking minority member, to sponsor legis¬
Despite the largest volume of new financing in the history
of the world, the average price level today is substantially
pending,
of course,
upon
the lation to bring about the change.-In a statement Mr. Knutson said
(Continued from
page 66)
tive preferred stock of $100 par
,
••
,
_
'
-
,
action
*
the Securities
of
change
Commission
and
in
Ex¬
.
releasing
above the
he believed "the time has come to ♦>
of the
Treasury
eliminate
completely
operation and enforcement
our
tax
laws, prevent the
"
the securities.
dictation
7V:;
Queried
His
of
matters
on
policy."
Why Only Two Bidders?
.
:
'.V
of
tax
' Administration,
from
using the
threat of unwarranted investiga¬
7.7
added:
statement
tion of income
why bidding in un"There is no good reason why
: dertakings
like
the
foregoing the
Bureau,
the
activities of
■finds only two, or occasionally
which relate strictly to the collec¬
"three syndicates in the running,
tion; of taxes, should' continue to
/ a banker. explained the situation be under the domination of the
on
; as
follows:
:
It is not, he said, due to any
v77;x,
writing
industry,
like
manpower
"That's
many
a severe
f
bottleneck,"
pointing, out that for
present only a veritable
the
;
worked out."
son
said, "there is no doubt but
improved procedure in the
collection, •
of
could
taxes
Mr. Knutson's statement
Because of the vast amount of
work involved, he : added, most said: x ::77x7 : ^ 'y y -; -7 -
also
(such .firms ■ would rather-go, alt^ng
: as members of a
group
heading it
instead
6i
under present cir7-x/V:: 7:''
7
up,
cumstances.'
.
.
»
.
.
Secretary
and
his
.
staff
'ry-;77:i ;■ ■ nomic system which are contrary
separation of the two to American principles and to
agencies would take politics out which Congress is opposed."
VI AAl
t'A4 TI'UEIIS
TftlJ&T
■77.
COMPANY -7
/;;
"The
Condensed Statement
x
;7.:',7
of Condition
as at
close of business
December 31„ 1943
/
•
.
.
revealed: time and
again that
their approach to tax. problems is
influenced
by
their
desire
to
bring about changes in our eco¬
,7-v..- /
,1
"The
.
nave
be
x:7: -
.
•
.
second
ent; bureau, Representative Knut¬
; needed .to handle this type of
:, financing. 7'' /;:
%
";7N ■ 7 ■ ■
*
The
.
that
.
,
outstanding achievement has been the excellent
instrument
of
punishment
or
handling of the money markets, in the face of tremendous gains
duress and permit the bureau to
in currency circulation (the total was above $5,000,000,000), declin¬
be of much greater
service to
ing excess reserves and an intense effort to distribute bonds among
Congress in advising on the me¬
non-banking investors..
The Federal Reserve authorities absorbed
chanism of collecting taxes.
Treasury, • which
too
often is
$6,000,000,000 of; Governments during, the year, but that still was
"So far as the Treasury is con¬ far below what had been
more concerned with the politics
expected.
7,
of tax policy than With giving cerned, a great many members of
One • major point stands out above all, of significance. to the
Congress,
unbiased
information Congress, regardless of party af¬
present and the future.
Last year's record shows beyond doubt
upon which it can 7 intelligently filiation, are at the end of their
that our fiscal authorities have learned the lessons of central bank
formulate revenue legislation/' ; patience in reference to the at¬
and money management. .
.
And they have shown their ability
If the revenue raising commit¬ tempt of Secretary Morgenthau to to
place the market where they desire,
tees of Congress were enabled to usurp the constitutional control of
the legislative branch over tax
work directly with an independ¬
handful of firms boast the syn■V dicate. and buying departments
.
various domestic and foreign pressures.
.
he
averred;
,
an
,
.
shortage.
the
as
.
>
'
others, is suffering from
returns
.
.
lack of capital, but rather stems
from the fact that the under-
:
tax
price level at this time a year ago,
On a yield
basis, yields are 6 to 20 points below the marks of early 1943....
The market is down from the prices established in the summer,
but the decline has been surprisingly small considering the
.■/
'] Puerto Rico Revenue Issue
With
vately^
.
Cash and Due from Banks
■
of bankersis
slated to bring out, on Wednesday, an issue of $20,000,000 Puerto
'Rico Water.Resources Authority
The public, it is now
F. H. A. Mortgages
Main
indicated,
about $10,000,000 of the
bonds are being sold to
total. The
refinance
outstanding debts in the foregoing
amount, and to pay for the acqui¬
.
.
NEW YORK
AND TRUST COMPANY OF
sition of the Puerto Rico
Light & Power Co.
.
.
.
$401,956,452.50
.
.
.
.
887,436,947.74
Other Securities
C ON DEN S ED
Railway,,
7;; ;
S TAT EM
EI^T
of- condition
,
7.
,
.
.
......
.
;
,
..
....
298,950,311.04
13,897,195.28
12,129,030.67
2,039,173.46
3,688,277.14
3,597,767.76
Accrued Interest and Other Resources
,
$1,682,356,908.92
Rail Financing Dormant
Aside
.
from
occasional
an
:
sale
the close of business,, December 31, 1943
at
of equipment trust
field has
certificates the
provided lean
.pickings for the banking" frater¬
nity recently and appears des¬
RESOURCES
Cash and Due from Banks
*
Common Slock
•
•
no
U. S. Government
;
near as can
.
•
potential railroad issuer is of
Loans and Discounts
disposition to
undertake
anything in the way of refinan¬
cing
The
now
consensus
Customers'
stand. 7
to
seems
Reserves
7,583,758.60
Dividend
v
.
.
•
««
v.
Other Real Estate Owned /♦
*
•
•
•
Federal Reserve Bank Stock
.
•
.
.
480,000.00
..
.
\
•
32,998,440.00
•...
•
•
6,183,421.91
«
Common Stock
on
824^959.50
Preferred Stock
on
602,316.61
petitive
bidding
com¬
before it
now
for consideration inconsequence
of
Accrued Interest Receivable
-
insistence' i>f ► Midwestgroups that such
the
.
Other Assets
procedure be followed.
*
•
v. 7'•
7-'
.7 7"'
Celebrates 5Q Years
firm of Calvin
WaU Street, New York City, es¬
tablished in 1894, is this year cele¬
its
fiftieth, anniversary.
During, this period the firm has
witnessed tremendous changes; in
investment values;
Capital
•
•
.
-
•
.
of the investment company in this
the
firm
points
ment company under
ment has
ever
omitted
cash dividend.
no
•
.
.
'
♦
>
.
.
.
President, Cluett,
Peabody & Co., Inc.
EDWIN J. BEINECKE
$7,000,000.00
Chairman, The
Dividend
9,000,000.00
"
3,321,128.60
$19,321,128.60
Payable: January 3* 1944
.,
-
t
7
Acceptances: Outstanding
Less : Own in Portfoliu
150,000.00
#
202,039.39
2,597,143.01
$1,538,728.78
*;.
President,
.
EDGAR S. BLOOM
,
,
.
;
Gulf
Lambert
LOU R. CRANDALL
.1,247,541.41 -
Other Liabilities
',■*
•
:,
/
#
,
204,194.23
...
,
^
.
7
325,343,792.05:
Total
r
.
with
statement
$349,066,438.69
HAROLD V. SMITH
President,. Home
Company
The Charles L. Jones
New York
City
^President, Curtiss-Wright
Corporation
'
City
Maguire &
Co.,^nc,
Vice-Chairman of the
Boarct,
ALBERT N. WILLIAMS
President, John P.
"'
GUY W. VAUGHAN
HENRY C. VON ELM
JOHN P. MAGUIRE
Neto York
"i
Chairman, Trust Committed
-7
Company
Vice-President
Insurance Co,
ERNEST STAUFFEN
SAMUEL McROBERTS
HORACE C. FLANIGAN
Chairman, General BronxQ
Corporation
7-
CHARLES L. JONES
are
a
book value of $32,Q18J18.11 in the above
7
President, Western Unioi\
,
A
Telegraph Company
Principal Office: 55 Broad Street, New York City
68
>
BANKING
.
-
Since 1929,/these
!
of
OFFICES
IN
Member Federal Reserve
FEDERAL DEPOSIT INSURANCE CORPORATION
26
System
Member New York Clearing House Association
Member Federal
'
Offices Located Throughout Greater Nete York
,
GREATER NEW YORK
European Representative Office: 1, Cornhill, London, E. C 3
quarterly
>
Bartlett
.
President, Spicer
pledged
to secure public and trust deposits
(including U. S. War Loan deposits of $29,830,692.22)
and for other purposes required or
permitted by law.
its manage¬
$50,009)000.
HAROLD C. RICHARD
-
Simpson ThacherSt
JOHN M. FRANKLIN
*
■
,
Manufacturing Corp,
.Deposits.'.,,.
Lehigh Coal Co,
-
OSWALD- L. JOHNSTON
President, George A.
Company
President-
y
president, Scranton &
-
President,
Steamship Lines
Fuller
•
V
GEORGE J. PATTERSON
.
E, Gerli & Co., Inc.
JOHN L., JOHNSTON
and West Indies
CHARLES A. DANA
291,187.37
7
PAOLINO GERLI
;-
Sperry Sc
HARVEY D. GIBSON
*:
Reserved for Tnterest^Taxes,; Contingencies
j;
•:
Hutchinson Co.
.
,
,
7
/
invest¬
companies have paid dividends
over
C.R. PALMER
,
Chairman, Lincoln'
Savings Bafik
MEMBER: N. Y. CLEARING HOUSE ASSOCIATION • FEDERAL RESERVE SYSTEM
a
AIRECTORS
/CHARLES FROEB
President, Atlantic.
.•7.1 Securities with
:
pioneer in the, development
country,,
permitted by taw.
years,
and two World Wars.
pride to the fact that
-,':r.;
pledged
Depositsof $133,098,43Z17 and other public
Alkali Works, Inc.
"
five separate
periods of prosperity;; boom
U. S> Government War Loan
President, Mathieson
depressions*or panics; intervening
A
$349,066,438.69..
LIABILITIES
Unearned Discount 7.
Bullock, 1
to secure
funds and trust deposits, and for other purposes as required or
*
Undivided Profits
Cafviit BislEocfe Firm y 7
$1,682,356,908.92.
United States Government and other securities carried at 1165,461,085.31 are
EDWIN M. ALLEN
Surplus
brating
.7'
have been
pected.
The
155,391.83
74v., ■
TOTAE
/ (*•
held and
both sides pro and con, have pre¬
sented their cases.
As yet ther
Commission has given no hint
•of when its ruling may be ex¬
Hearings
''v
v:7
banking
era
65,143.66
-
89,650,526.37
48,344,446.37
.7
207,691.00
(Payable January 15, 1944) . . ♦ .
4,280,834.76
Outstanding Acceptances . V .. . ..
Liability as Endorser on Acceptances
300,214.02
and Foreign Bills . . . . . . . > 7 .
Deposits.
• • • *.• 1,580,909,261.36
2,022,750.48
that the carriers will await dis-
...
Dividend
1,011,722.13
,
$ 8,307,640.00
.
(Payable January 3, 1944)
73,777,932.36-
.
Liability under Acceptances
Banking Houses
be
.
position of the matter of
■
;
things
as
...
.
»
Undivided Profits
195,284,343.76
State, Municipal and Corporate Bonds.
be gauged now,
7 the
-
Obligations
.
Surplus and
$ 68,(#8,079.26
•
.
tined to- remain dormant for some
As
LIABILITIES
Preferred Stock;»»
railroad
little time,
8,027,541.56
21,430,886.55
2,229,200.00
26,974,125.22
.
..
V
.
...
.
7
.,
Loans, Bills Purchased and
Bankers'Acceptances . « . ; . . . ♦
Mortgages . , ..... . • . .7. . ..
Banking Houses . . ..........
Other Real Estate Equities ...
Customers' Liability for Acceptances
f-7;
,
.
State and Municipal Bonds , .
Stock of Federal Reserve Bank
Office. 37 Broad
will get an opportunity to take up
.
.
.
U. S. Government Insured
bonds.
revenue
7
.
.
U. S. Government Securities
group
a
RESOURCES
f
approximately, half of the
'total expected to be placed pri-
Both Common and Preferred,
and has
a
preference
over
Deposit Insurance Corporation
shares havo apar tgdue of $20 each, The Preferred is convertible inta
the Common to the extent of $50 per share and accrued dividends*
%
THE COMMERCIAL & FINANCIAL CHRONICLE
80
credit
Foreign Exchange
Stabilization Further Considered
single plan can adequately meet
the requirements of the various
nations that will need assistance:
This
after
definitely proven
was
War, and it was
World
last
the
also found,
that some success was
achieved by tailoring each stabil¬
ization effort to fit the require¬
ments
be
to
country
the
of
sisted and,
as¬
further, that this meth¬
od cost far less.
V
to make
effective, experi¬
ence
has shown, that temporary
rehabilitation may be difficult to
control
and may- develop
into
commitments for comprehensive
will be required
Take, for instance, the case of
displaced peoples. The UNRRA
would
naturally
take care
of
their relief, and
but
feeding
once
restored
their
to
own
rehabilitation
their
country,
■
probably arrange
and repatriation;
just happens that on Dec. 16,
I introduced House Joint Resolu¬
through the development of op¬
portunities to work and produce
to be complementary to
House Joint Resolution 192, now
wealth
It
tion 207,
being considered by the Foreign
Affairs Committee of the House,
which enables the United States
is
not
relief
a
economic under¬
taking for which UNRRA will
probably not be equipped if it
in
its role
as
purely a
relief institution.
bilitation Organization.
to the so-called White and Keynes
^
I think that we all are familiar
what relief
with
namely,
means;
food, medicine, and clothing for
the peoples of those countries who
have been: under Nazi jurisdiction.
Just how much we can give of
our
production for this
work
when
it
necessary
established;*
be
can
but
the matter of
despite the fact
to
comes
rehabilitation,
that the United Nations Relief and
.Rehabilitation
to
.
limit
endeavors
Council
rehabilitation
that
to
I
am
and
in
been
have
opposed
is
of value
to
fund.
adherence to
ests
other
For
the
this
to
H.
J.
192, the
the
House
tions
trol
DR.
A.
M.
international
on
exchange
right to create and con¬
clusive
i
:
accom¬
a
operations, or (2) an international
bank of rediscount having the ex¬
De¬
on
standard)
SAKOLSKI
bank
the
issues
note
countries.
member
City College, New York City
Professor
Anderson's
(or
and the entire absence of restric¬
purposes
21, 1943.
(1) the
universal gold
a
free and uninter¬
market/ for such metal
by
rupted
described in my re¬
are
before
cember
participants.
I have offered
complementary
as
Res.
of which
marks
207,
proposed that this could
metallic
panied
other
reason,
H. J. Res.
I
only be accomplished by,
might be subordinated to the
of
set up by
Stabilization
unit
International
the
of the
y
.
y
I realize that these
restrictions > are an
invasion of
Of
analyses
course,
of the defects and shortcomings of
the proposed plans for post-war
national sovereignty, and will
exchange stabilization
whole
sound;
* *
he
evidently
tries
on
But when
^
be
or evaded by the coun¬
which they are imposed.
opposed
the
on
are
has
internal
the
endeav¬
looks back at the
one
ernment agency.
Obviously, these
difficult
to put into operation.
Regarding international capital"
measures
extremely
are
loans following the war, I am par-
tially
these
that
should be permitted at all)
left
be
should
inter¬
strictly to private
and
ests
;
with Profesor An¬
loans
(if any
agreed
derson
there should
that
be
no
inter-governmental loans. I also
agree with his suggestion that they
be in the form of equity securi¬
ties, rather than fixed interest ob¬
ligations. If there are opportuni¬
ties for profit in any of the war
torn countries you may rest as¬
sured that there will be private
capitalists who will venture into
these realms, just as they did in
after
the
South
But
bankers
mitted,
as
War.
Civil
our
should
not
be
per¬
happened after the last
monetary
belligerent
the
World
last
.
be
Main
currency
be a
member of some great interna¬
tional
financial
organization in
views
to
Or
situations in war, to shift the risks to small
nations following investors or speculators, eager to
ored to fake;
War, one can obtain high returns, and who are
a highly real¬
hardly conclude that there will not in a position to bear business
be anything
different following losses. Our people burned their
attitude
velopments between the nations istic
the present conflict. Each coun¬
fingers badly through their par-,
of the world may automatically regarding the
try's government, excluding our ticipation in foreign loans, and we
bring into being some form of proposals. But
own, will be faced with the neces¬ should not let it happen again.
international banking institution, he is not as
an
international
loan
bank
realistic
as
sity of vast expenditures for re¬ If
but in view of the up-set condi¬
habilitation and their taxable re¬
(such as has been proposed by
might appear
tions that exist today and politi¬
sources will have diminished- al¬
Secretary Morgenthau) can assist
from
his
re¬
cal, uncertainties that may exist
most to a vanishing point. Their private capitalists in aiding re¬
H e
in
countries
freed
from
Axis marks
fails to suffi¬
only recourse, therefore, will be habilitation thYough taking up the
occupation, it appears to me that
the
resort
to
"printing press" secondary impact of these loans,
it would be far wiser to set up ciently em¬
money, since their impaired credit by a system of highly restrictive
phasize the
and the dearth of loanable cap¬ credits, so much the better. The
fundamental
defect of the
ital, will preclude public loans. situation would be greatly aided,
Under the circumstances, there is as Professor Anderson suggests,
whole
plan.
bound to be recurrence of hyper by a revival of the American cap¬
The three dif¬
A. M. Sakolski
inflation. It may be eased by in¬ ital market, and a removal of the
ferent propo¬
loans
sals set up will
(or
gifts
of handicaps imposed by the Secur- *
•:
Vv\v ■
:• A ternational
as
Professor
Anderson ity and Exchange Commission and
undoubtedly meet with difficul¬ funds,
rightly suggests) but it can hardly the operations of the Johnson Act.
ties, if not complete failure, be¬
Plans, and the long term credit
plan as recently proposed by the
Treasury.; Future cooperative de¬
FliLTON TRUST COMPANY
cause
quate
of
YORK
NEW
OF
a
international
the
-nations, than to
if such
fixed ratio
currency
bear
to
cooperation with other
interested
but definitely an
continues
issuance of domes¬
measure,
participate in the work of the
United Nations Relief and Reha¬
to
merits
System.
right to create and issue cur¬
rency) from lending to any gov¬
tic
its own
case on
Reserve
accomplisehd by pro¬
be
may
similar
Rediscount,
hibiting a national central bank,
(which should have the exclusive
which American wishes and inter¬
reconstruction.
their
ped to study each
it
of
Federal
16, 1943) there must be sufficient
national organization equip¬
some
our
letter of September 2, 1943
lished in the
"Chronicle,"
control of the
the relief effort
Bank
■
pointed out to you in my
(pub¬
Sept.
As I
(Continued from page 59)
which
member
operations of the
nations.
Post-War
study the various points that Dr.
Anderson so clearly sets forth.
It must be obvious that no one
Thursday, January 6, 1944
they fail to set up an ade¬
internal
domestic
of
and for this should be
currency
con¬
On the whole Professor Ander¬
opera¬
son's destructive criticisms of the
drastic
a
currency
the control tions be imposed.
machinery for
the
avoided unless
trol
The machinery
an
International
Office: 149 broadway (Singer Building)
Uptown Office: 1002 MADISON AVE. {Bet. 77th & 78th Sts.)
stabiliza¬
exchange
international
proposals are good, but, like
many other of us, he has not yet
outlined clearly a practical sub¬
stitute. He tears down, but in re¬
tion
building he only fills up a gap
and there in the structure,
here
Certainly,
CONDENSED STATEMENT,
DECEMBER 31, 1943
RESOURCES
Cash
on
Deposit in Federal Reserve
Bank of New York.
Cash
on
5,942,743.24
266,435.91
Deposit in other Banks.....
U. S. Government Securities.....
Demand Loans Secured
State and
..
903,860.80
\
-.. y.
Other Securities
by Collateral
Loans and Bills Receivable
Overdrafts—Secured
.
,....................,.....
Real Estate Bonds and
Real Estate
HANOVER SQUARE,
Statement
V.;...; y. *.
Federal Reserve Bank of New York Stock........
Time Loans Secured
and
Mortgages
(Branch Office).,..............,...
Other Real Estate. .1
Accrued Interest and Other Resources
518,115.69
120,000.00
1,789,521.77
939,704.65
1,417.94
3,981.92
228,702.06
100,000.00
120,950.00
126,595.55
help
a
will
war-torn
.
Prospects For Business
Banks..
Brokers, Secured.....
Cash in Vault and with
Demand Loans
to
.,
U. S. Government Securities-
$18,211,317.14
..
«....
.
Loans and
...
»
*
Stock of Federal Reserve Bank
•
»
•
'»
.....
Customers' Liability for Acceptances
»'»'»
•
i
t
»
*
•
*
»
»
7
LIABILITIES
commodity prices so general that
will be commonly considered
to constitute inflation.
261,985.48
....
Discounts
(Continued from page 77)
3,196,963.61
State, Municipal and other Public Securities........
A
Other Bonds
In 1944
1,945,000.00
37,839,168.97
*..*.."
it
17,301,378.78
V
,yV.......,..
105,000.00 '
Next
138,563.91
'
.............
179,325,107.86
x-
Depositors. .............
157-$L50-Payable January 3rd, 1944
Dividend No,
Reserved for Taxes,
Expenses and Contingencies..
Capital..,....................... $2,000,000.00
$ 1,500,000.00
Capital Stock
Surplus
$31,789,394,94
30,000/90
2J6,555.94
.
Deposits*
./V
......
A <>■■/,•
Certified and Cashier's
Surplus., ..,,...... . . .2,000,000.00
Undivided Profits...... ..iV.....
1,033,680.98
Acceptances
^
Checks Outstanding..;...., ;
.....,,
5,033,680.98
Expenses, etc..
"'■/
•;
i; * Includes U.
ing trend until the war ends in
2,649,213.94
...,..»...;
♦.
-y-X '"
'
$37,069,631.86
probably continue in a slowly ris¬
71,556,839.22
Reserve for Contingencies, Interest,
.
2,000,000.00
759,292.12
i,
Profits
Undivided
Europe, and then turn
244,358.07
615,404.51
Steel
downward.
production will probably
several
S„ Government Deposits aggregating $12,729,950.90
years
to
Produc¬
come.
tion in 1944 is likely to be
of
DIRECTORS
directors
hugh j.
lewis spencer morris, Chairman of the Board
PresZ.W.
'
arthur j. morris, President
-
>
robert j.
cuddihy
Vice-Pres. & Treas.,
.
Funk
& \Vagnails Company
John d. peabody ;
henry w. bull
John a. larkin
Charles s. Brown
Bernon s. prentice
o'donnell iseun
russell V. cruikshank
Franklin b. Lord
e. townsend irvin
stephen c. clark
charles j. nourse
Kirlln, Campbell, Hickdx,
Keating & McGrann
International General Elec¬
tric
■
chester r. dewey, Pres.
Grace Airways, Inc.
j. e. rousmaniere
Sugar Company
robert e. dwyer
Executive Vice-President
w. h. la boyteaux"
Pres., Johnson & Higgins
AnacondaCopperMiningCo.
New York
.
J. ii. sharp, Vice-Pres.
Member Federal Reserve System and Federal Deposit Insurance Corporation
The Grace
name
has been identified with domestic and international
banking and
specializing
in
personal
trusts
&
commerce
for
more
than three generations
or
-
but not by more than
will probably
1943.
be
coal
1944
by less than 2%.
Production
harold j. roig
Pres., Pan American-
probably
7%,
bituminous
be hitter in
of
Production
will
than in 1943,
Vice Pres., General Foods
Corporation
david m. reiser, Pres.,
The Cuban-American
david dows, New York
Company, Inc.
william m. robbixs
keefk
Pres.,Ingersoll-RandCo.
de coursey fales
Russell E. Burke
,'
d. c.
charles scribner
Stanley a. Sweet
cj.ark h. minor, President,
R, Grace & Co.:
cletus keating
slightly
less than that of this year.
d. s. iglehart
chisholm
Pres., Oxford Paper Co,
edmund P. rogers, Chairman of the Executive Committee
and in
be well sustained in 1944,
$79,325,107.86
■
promises to be our
year
toughest transportation year with
respect
to
automobiles, trucks,
buses, street cars, and railroads. ,
The volume of industrial pro¬
duction is near its ceiling. It will
325,729.97
$37,069,631.86
board
made
be
that
up
to
time goes /
of Condition, December 31, 1943
RESOURCES
LIABILITIES
.
some
world.
Accrued Interest and Other Assets
Due
set
machinery
bring
NEW YORK
can.
.25,659,135.83
by Collateral
Municipal Bonds..
$33,120,642.28
readjustments
on,
OF NEW YORK
.
to be re¬
are
must be undertaken. As
GRACE NATIONAL BANK
348,466.50
Cash in Vault.;s;......... .$
world
chaos avoided, some
positive action, such as are con¬
tained
in
the
three
proposals,
and
stored,
*
the economic rela¬
if
of the
tions
electric
of
power
be greater than in
The increase is not likely to
less
than
10%
or
It
now
seems
likely
that
member
federal
deposit
insurance
na¬
tional income in 1944 will not dif¬
fer much from that of 1943.
banking
than
more
20%,
Prob¬
corporation
ably the increase or decrease will
not
be
more
than 9 %.
7
7
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
" Number .4244
159
& Notes
i
A syndicate headed by Halsey,
Stuart
&
Co.,
Inc.,
Lehman
Brothers
will
ing
bonded
troller
the
debt,
(Continued from page 61)
more rapid reduction
in charges
than
could
be
accomplished
through using a similar amount
"It
Comp¬
was
the
and Kidder, Peabody &
Co., is making "public offering of
a
new
issue of $9,450,000 1.40%
delinquent and deferred instal¬
of
ment
priced
State of Minnesota, Rural Credit
Deficiency Fund certificates of in¬
Wendt
stated,
and pointed out
debtedness.
that $4,923,000
of the $5,500,000
This
group>'was high
bidder
declared.
taxpayers who have built
the amortization fund", Mr.
up
on
Jan* 4 for the issue,
offering 100.112 for 1.40s, as com¬
pared to the next best offer of
fund
"interest
on
100.029
tended
taxes
the
for:
;1.40s,
Bankers
by
submitted
Trust
Co.
New
of
J'<■
York, and associates. '
The
certificates
semi¬
mature
annually from Aug. 1, 1956 to Feb.
1, 1963, incl., and the public of¬
fering was .made at prices from
101% to 101, according to ma¬
turity. The securities are redeem¬
able at the option of the State at
par on and after Feb.
1, 1947,
and the yields to optional date
range from 0.81% to 1.06%, and
to actual maturity from 1.25% to
1.34%. Counsel reports that these
certificates
eral
constitute
valid
gen¬
contributed
street
he
city's
aged
$268,000
To
Large Utility Issue
Vote
On
term
and
the
Has
2(M/a
cost of
a
approximately$1,000,000.
Altoona, Pa., "Refunding Plan
Suggested By Controller
;
Ward B, Morrison, Altoona, Pa.,
City Controller, has urged that the
municipal < administra¬
incoming
tion
of
Southern
marked
Pacific
lessening in
its
to
as
outlook.
any
post-war
of
this
All
augurs well for the potential mar¬
ket action of the road's
junior se¬
allied with the elimination of its
affording
a
perma¬
fund
closely
debt.
V
Milwaukee
also
has
a
...
,
per¬
1944,
levy for
the levy for
increases
tax
as
debt service declines.
As the
An analysis of the
for
which
specific
liquor
on
Jan.; 13.
in
the
Interest of
the
ceased
Revenues
In
Your
Dominick,
York
City, ceased
Interest
of
amount
dividual
State
in
question.:
in
of Dec.
as
the
street
Council
City
refinanced
f
on
most
sary to
Hallgarten
of
money
neces-
to
into
State
each
county
cludes
well
the
City, ceased
over-the-counter
auction markets, are
"all. in the same boat," and no
single segment can be expected to
social
making
1942
1943,
by
1942.
perhaps,
This
revenues
30 %
would
in
1943
partnership
approximately
in Sutro &
on
;
,,
State
on
a
cash basis
permanent improvement
improvements
probably soon be the
only large city in the country that
is debt free, it was stated in the
fund, will
annual
of. William
summary
H.
Wendt, City Comptroller. The re¬
cently adopted 1943 tax levy, Mr.
Wendt said,
includes a sum of
$300,000 to take care of bond prin¬
cipal maturing in 1944 and, when
this payment has been made,, the
city's
public
debt amortization
fund will be in a position to as¬
sume
the remaining outstanding
bonded
debt
of
the
city.
The
fund will
$1,859,000 of prin¬
cipal due in the current year, and
thereafter
both
maturing bond
pay
principal and interest.
This
lished
city's
fund,
in
which "was
1923
bonded
to
/
*
'
services.
the
eventually,
$398,000
and
cities and private
capital, of necessity, must find a
solution
to
this
problem
if
free
enterprise is to survive and if
do
we
not
turn the operation of our
American political system into a
government by bureaucracy.
"We have studied for years-the
formation of
Discount
a
Bank to
do
only equity financing of small
and
promotional enterprises in
this
and
area
Judge Healy,
of
real
the
benefit
regard."
suggestions of
hope, will
we
in
this
Vv-
prove
particular
<■
With Goldman, Sachs
(Special to The Financial
Chronicle)
the Professional
OHIO
John
—
H; Fillmore & Co.,
First National Bank Bldg.
Building, is
now
associated with Goldman, Sachs &
Co. of New York City. Mr. White
formerly conducted his
vestment
under
&
business
the
firm
in
of
name
Co.
in¬
own
Waterville
White
:
■
,
counsel, from all present Federal Income
and tax exempt in the State of Minnesota,
•
•
.
Taxation
-
'
Minnesota
1.40%]Rural Credit Deficiency Fund Certificates of Indebtedness
*
Due
$675,000 semi-annually August 1, 1956 to February i,
1963, inclusive
These
Certificates
subject to
are
~
"
or
interest
any
redemption
date
payment
at
thereafter
par
30
these
„
refunding
purposes, in the
constitute valid general obligations of the State
of which the full faith and credit of the State are
observat¬
duction
:::-v
Maturity
August
formerly major
on
distillers
October
,
,
Opinion of counsel will
pledged.
V/-
,
•
.
.
.
J, 1&56
Yield to
.
Price
.
101.75
Approximate
Yield to
Optional Date
0.807%
Maturity
Yield to
Optional Date
Frice
»>
Approximate
Yield to
Maturity,
Maturity
1.248%
February- 1, 1900
101.125
reT
1.018%
February
1, 3 057
101.50
0.890
1.274
1.822%
August
.1,
1980
101.125
1.018
August
I, 1057
101.50
1.324
0.8f>0
1.278
February
1.018
1,
1058
101.25
0.976
1,802
August
1, 1961
I, 15)01
101.125
February
101.125
1.018
1.328
August
1, 15)58
101.25
0.076
1.805
February
1, 1002
101.00
3.060
February
1, 1059
101.25
1.337
0.976
1.808
August
1,
1002
101.00
1.000
1.339
August
1,
101.25
0.976
1.311
February
1, 1963
101.00
1.060
1.310
ago
1059
1.326
rev¬
Accordingly, State
have
'
use
curtailed receipts from
taxes and license fees,
were
1947,.
of Minnesota for the payment
Approximate Approximate
from
Government
severe
1.
notice.
,
These Certificates, to be issued for
avail¬
revenues
days
'
;
booklet
February
on
upon
Legal Investment, in our opinion, for Savings Banks in
New York, Massachusetts and Connecticut
'A;.\
beverages:
sources.
These
,
;
;
;;;
Certificates
are
offered,
Wood, Hoffman,
Messrs.
when, as and if issued and received by us and subject to the
approval of legality by
King & Dawson, whose opinion 'will be furnished upon
delivery; The offering circular
v/
be obtained in any state in which this announcement is circulated from only such, of the nndersignea as
are registered dealers and are offering these securities in compliance with the securities law in such state.
may
v
"...
HALSEY, STUART & CO. INC.
LEHMAN BROTHERS
PHELPS, FENN & CO.
KICDER, PEABODY &XO,
BLAIR & CO., INC.
GOLDMAN, SACHS & CO.
8/ 1942, and
had
to
allocate
STONE & WEBSTER AND BLODGET
'INCORPORATED
their
V
F. S. MOSELEY &, CO.
S'"
R. W. PRESSPRICH & CO.
remaining whiskey stocks:
accordingly, State
tax
receipts
from whiskey and other distilled
FIRST NATIONAL BANK
FIRST NATIONAL BANK
NORTHWESTERN NATIONAL BANK
MINNEAPOLIS
SAINT PAUL
MINNEAPOLIS
spirits
E.H.ROLLINS&.SONS
have
declined
precipi¬
tously.
this
State
trend
of
declining
beverage
tax
continues, States obvi¬
ously will be compelled to seek
other
/
of
sources.
now
readily
available.
■
the
revenue
not
ment
As
basis
or
a
ALEX. BROWN &.SONS
OTIS &.CO.(INCORPORATED)
T
..
EQUITABLE SECURITIES CORPORATION
.'V.y,
:,rj f~\,
^ Y'jV/
BAC6N, STEVENSON
of
of
&, CO.
and
revenues
INCORPORATED
MULLANEY, ROSS & COMPANY
INCORPORATED
:
CO.
•
v
CHICAGO
EDWARD LOWBER STOKES &. CO.
fig¬
this year, it is estimated
State
CAMPBELL, PHELPS &,CO.
■
R. S DICKSON & COMPANY
J. R. WILLISTON
fact,
collection
-
HEMPHILL, NOYES&CO.
I
1
NEWBURGER, LOEB & CO.
apparently
matter
released by various States
far
that
INCORPORATED
B. J. VAN INGEfl & CO. INC.
EASTMAN, DILLON &. CO.
.
ures
i1,/•.
alcoholic
revenue
on
■■■
GEO. B. GIBBONS&CO.
INCORPORATED
;
"If
estab¬
the
The states and
$9,450,000
di¬
placing increasing dependence on
other tax media, such as sales and
alcoholic beverage taxes. The dis¬
tilling
industry
has
made
no
whiskey since its facilities were
completely converted to war pro¬
so
assume
debt
originally, totaled
-.,
•
to
and local governments have been
Wiscon¬
"The thoughts
and ideas ex¬
pressed in the enclosed letter, in
our
opinion, will help in the con¬
sideration of this vital problem.
Interest exempt, in the
opinion of
gov¬
strictions imposed on civilian
of
automobiles
some
time
enue
bonds and since then has financed
properly, must solve the
problem of the development and
financing of small and medium
sized business.
from
funds, and the
State
on
which
sin, which in 1932 stopped issuing
post-war economy, to func¬
tion
Co., San
Cregmile is secretary and
director of W.
'
.
subject
manager
of
the investment department of the
Bond Co., declares in a
Jan. 1, 1944.
CINCINNATI,
Griffin
as
compared with the $542,000,000
collected in 1942."
Thomas
;
.
retired
New 'Officer
of
$380,000,000
the
on
Capital."
Graham,
WATERVILLE, MAINE—Ray¬
mond L. White, with offices in
such
level
a,
•
Jacobs
on
from
place
at
Herzog retired from
P.
Francisco,
the
local
and
bureau made
gasoline
Dpbt-Free Status
B.
31, 1943.•;
H.
Irving
:
•
,
as
Dec. 31, 1943.
join together in
combating their respective prob¬
pensions and assistance, char¬
itable institutions, poor relief and
seriously
owners.
Milwaukee, Wis., Nearing
from its
James
Co., New York
of Dec. 31, 1943.
partnership in Shields & Co.
succeed unless all
lems.
of Dec.
Edwin
as
the
as
age
:''The
ties would be collected from the
The City of Milwaukee,
late
Co., ceased
in¬
and
,
property
31.
the
as
purposes for which specific allo¬
cations were made—schools, old-
alcoholic
:
Co.
securities
which each in¬
State general
ions
meet the annual maturi¬
assessed
&
L.
Interest of the late S. H. Fessenden in F. S. Moseley &
ernment, the amount which went
tical
that this debt be
a five-year serial
of the
Melvin
able, .Allied's research and statis¬
basis and expressed the opinion
i that
verted
In
paving bonds, Mr. Morrison said
that he would suggest to the
of Dec. 31.
late
(Continued from first page)
perfectly obvious that the entire
this
Council
pur¬
received,
which
amount
similar
to
reference
With
as
the
New
Mabon in Mabon &
and
England
of "Venture
revenues
beverages .-.•in
show the
;
:
S.
Colburn in Bell & Beck
with, To¬
ledo, Ohio, ceased as of Dec. 31.
Interest of the late Elton Parks
in Dominick &
States and the; Dis¬
trict of Columbia from the sale of
the view, that
the obligations can be refinanced
under present market conditions
at an interest cost of 1%%, or per¬
ness
Walter W.
of Dec. 31, 1943.
of the late Albert
as
Interest
Where They Went," breaks down
the $541,680,265 collected by the
latter become callable in. 1944. Mr.
bility of refunding the indebted¬
late
1.
Price, limited partner in Abbott,
Proctor & Paine, New York
City,
analysis, contained in a
20-page booklet, entitled "Liquor
alcoholic
haps less. He said that he has re¬
ceived inquiries lately from var¬
ious sources regarding the possi¬
limited partner
a
firm effective Jan.
"Ail lit The Same Boat"
industry,
a letter written
by Judge
Healy of the Securities and Ex¬
change Commission to the New
Carlsen, general partner
letter accompanying the
&
reprint,
Marshall, Seattle,
"The
Emerich
levels.;.';;-;
Inc., t>
Building,
"distributing
The
and
$300,000 bonds of 1924, which
& Co.
is
Foster
Wash., became
forty-eight
Morrison- expressed
are
Co.,
Life
Bankers
Carl I.
Interest
are used by the various States has
just been made public by Allied
Liquor Industries, Inc.
give early consideration to
his proposal that the city refund
$551,500 of outstanding 3% special
assessment
street .paving
bonds
,
Both
partners in Collin, Norton
ceased
at recent price
improvement fund, close¬
ly allied with the elimination of
the
Harry E. Collin will be
considered
return of around 8.5%
a
manent
debt,
St. John to
improvement in the long
status
a
year
progressive
.
bonded
also
improvement
poses
,-
.
the
1955.
curities. ":-A $2 dividend was
paid
on the stock last
year and at least
that much should be
paid in
Milwaukee
nent
envisages post-war addi¬
program
witness
,
financial
city
S.tppped issuing bonds in 1932, the
/
The finance and judiciary com# improvement fund levy has pro¬
increased
and
the
mittees of the Madison, Wisconsin/ gressively
amount for 1944 is $3,035,000 and
Common
Council
have
recom¬
thereafter will be $3,800,000. The
mended adoption of a resolution
city's tax rate for 1944 is 2.03 per
calling for a referendum at the
$1,000 of assessed valuation below
April 4 election on the question
that of the previous year and the
of the issuance by the city of $11,city's financial program is now in
500,000 bonds in connection with
such
favorable
condition
that
proposed municipal acquisition of
Comptroller Wendt has suggested
the facilities of the Madison Gas
the possibility of stabilizing the
& Electric Co. The total bond is¬
tax
rate
at least
for four-year
sue would provide not more than
periods.
$137,000 negotiating expense and
$363,000 for immediate plant ex¬
Purposes For Which States
tensions and improvements.
The
Use Liquor Revenues
tions and betterments at
a
the overall system
on
apprehension
'
years."
charges
highly sal¬
copies of
in
further
aver¬
for
year
a
and
have
This
in
Bond
changes:
Proposed transfer of the Ex¬
change membership of Howard E.
of New York and Toledo.
should
itself,
contributions have
monies
maturities.
nearer
rapid reduction
Bankers
Kentucky Home
Louisville, Ky.,
Exchange
following firm
gage maturities in 1949 and
All
in
all, the coming
ex¬
continued, "has earned $4,these
high
Equity Capital
The
The New York Stock
has announced the
credit, thus further simplifying
problem of refunding mort¬
600,000 interest from the invest¬
of
the
Exchange
Weekly Firm Changes
the
instalment
ment
purchasing
utary effect
from
fund
The
in
would in turn
deferred
and
cash
more
the
to
came
delinquent and
assessments."
which
Madison, Wis.,
1923
improvement
bonded
obligations .of the State.
the city
by
since
New York Stock
Railroad Securities
outstand¬
the
equal
soon
81
local
from
Dated
February 1,
Coupon
1944. Principal and semi-annual interest, February 1 and August 1, payable in New York City
certificates in the denomination of $1C00 registerable
contained
herein
accuracy,
we
has
been
carefully compiled
from
sources
believe it to be correct a? of this date.
'
as
to
principal
considered
only
reliable,
or
and
as
to
while
principal
not
and
©r
as
alcoholic
January
6,
1944.
Minn.
information
to' completeness)
'
'
govern¬
beverages will drop sharply in
St. Paul,
interest.;The
guaranteed
VPv.
or
-
is
NASD 5% Rule
Of Congress
Contrary To Will
And Must Go!
(Continued from page 59)
^
a
•
.
profits just to insure there being no such thing
10% limit on mark-ups.
;
; ; ;v : ■
time and again Commissioner Mathews during the
3%, 5%
And
made the Committeemen understand that
work on the presumption that the SEC would
pret the Maloney Act in the light of the reports of
islative committees which are now public records.
they
inter¬
these leg¬
*
again that it is obligatory upon the Board
of Governors to rescind the 5% rule and mandatory upon the
SEC to see that this is done.
•
While the rule stands, the SEC Commissioners and the
Governors of the NASD are doing nothing more nor less than
And
so we
say
,
the will of Congress and challenging both the
and House of Representatives'to do anything about it.
few of the high and mighty in, the Association are
ignoring
Senate
A
controlled by the members of the NYSE and large underwrit¬
h'?.
ing houses.
We have sent our
resignation to NASD and
asume same
'*■
•
109
DEALER NO.
though they may not make as much money as before, and
that the SEC wants it. And, since the SEC is here to stay,
well abide right down the line by their wishes.
This, it seems to us, is like condescending to have a leg
chopped off on the theory that you can live with but one.
Organized effort to have this rule rescinded is beginning
to manifest itself. Dealer associations all over the country
might
as
telegraph to Ganson Pur cell, Chairman of
the SEC, and Henry Riter, 3rd, Chairman of the Board of
Governors of the NASD, and insist that the rule be abrogated
when the Governors meet this month. Where no organiza¬
should write
or
of dealers should have their lawyers fol¬
They need not mention the name of their client if
dealer ; does
not
wish
his
identity revealed.
(The
tion exists, groups
low suit.
a
Incorporated by Royal Charter 1727
■!', HEAD
3
49
having no provision for profit for non-member firms who are com¬
risking that the customer will take the advice and order directly
a stock exchange firm and thereafter be considered a customer
of the stock exchange firm. It seems more than possible that stock
TOTAL
possible that they also have a very strong
in
Williams
voice in the NASD affairs and that their best interests do not lie
direction
the small dealer.
the small dealers but rather at the expense
as
':."■■■■ r
'.
v.
-
■'■/■■■
of
and Edward A. Kole which starts on the outside front cover
of this issue.
..
(i
Saturday after¬
Personally, I'd be satisfied with 5% and like it, but what right
have I to say that is enough for a dealer down the street. Let him
charge what he wants. If it's too high he'll lose his customers (to me
I hope).
//'/,■.,-{■'?'■ v'">■ ■(,:-?/%-■■ V; ■
Y Y'Yv;•
Respectability, what crimes are committed in thy name!
R!'
What I am wondering about is what two or three busybodies are
.,.
getting together in Washington and putting all these ideas into
other peoples' heads. It isn't a question of 5% or 10% limitation. That
is not the issue at stake. It is the right of representatives not chosen
by the people, or evidently by the majority of the industry, to regu¬
late so minutely other peoples' business. Next year some four ply
thinker is apt to hear "the call" and hit the trail for 1% limitation.
Next will come a roll-back idea wherein every dealer pays every,,
investor 10% of all securities he has sold them. Only in this case
there will be no government subsidy.
- '{■.}
; :
Why not get hold of these birds both in the SEC and the NASD,
pull them out in the open and hear what they have to say. Or maybe
it's only one man. Whoever it is they should be personally identified.
Australia and New Zealand
BANK
NEW SOUTH WALES
you
(ESTABLISHED
Paid-Up
could be accommodated in today's paper are given
below. As in the past, no letter favorable to the 5% decree
has been omitted. And please remember that in informing
the "Chronicle" of your views on the subject you are help¬
ing the cause in a substantial manner. The names of those
submitting comments will be omitted where requested. Com¬
as
Liability of Prop.
"
'
-
DEALER
DEALER
SIR ALFRED
instructed to send the "Chronicle"
was
a
copy
of the follow¬
ing letter which is self explanatory:
Chairman & Board of Governors,*
National Association of Securities
;
Dealer's, Inc.,
1616 Walnut
Street,
Philadelphia 3, Pa.
.
,
;
^
'
a
Head
Office:
30
Dec.
the
following
The Bank of New South Wales is the oldest
and largest bank in Australasia.
870 branches
share
of
profits
and
efficient
traders
the
membership for approval
secret ballot..
or
disapproval by
v."
We fear that it may be the forerunner of other arbitrary
and pernicious regulation.
,
'
We believe that it is not practicable or advisable to formua national profit yardstick.
late
We
challenge that such a yardstick, should be applied to
the State of Maine territory which we serve.
The Secretary was instructed to forward this communication to
•
or
branch managers,
to
branch managers,
departments and others,
it is evident from discussions had
serves
for this purpose,
:
our
opinion that membership in the NASD is a
a help. We feel that
to the small retail dealer instead of
Lamborn
&
the
New
Inc.,
Co.,
nominated to
has
banking
service
travellers
to
interested
investors,
LONDON
in
the*#
29
Threadneedle
47
•
OFFICES:
Street, E. C.
Berkeley Square, W. I
Agency
with
arrangements
Banks
J
throughout
the
8.
U.
A.
:
■
NATIONAL BANK
of EGYPT
'Head
Office
J-yf
Cairo
No.
1
1
Cairo
FULLY PAID CAPITAL
RESERVE
FUND
LONDON
6
and
7
!Cing
.
£3,000,000
£3,000,000
^
AGENCY
William
Street, E.
all
C.
the
principal Towns in
EGYPT
and
the
SUDAN
been
President of
serve as
York
served
Coffee
and
as
NATIONAL BANK
Sugar
Vice-President
of INDIA. LIMITED
of
Bankers
the
also selected Charles Slaughter
Slaughter, Home & Co. to
Vice-President
as
inated
John
C.
and
Head
Branches
The
following
to
serve
of
the Board
two
Governors:
L.
Jr.,
M. E. Rionda, P.
Vice-
R.
Horne has
serve one
26, Bishopsgate,
London, E. C.
India,
Burma,
Ceylon,
■
Kenya
Colony and Aden and Zanzibar
Paid-Up
Reserve
The
Capital__„._£4,000,060
Capital___«._„£2,000,000
—£2,200,000
Fund—.
Bank
conducts
every
description
banking and exchange business
Trusteeships
and
.
of
Executorship*
also undertaken
Har¬
Interesting Situation
Bache, John A. Higgons,
R. Nelson,
F. H. Silence and F. Shelton Fam
to
Office:
in
Subscribed
nominated
as
members
old
F,
in
Uganda
were
years
of
Government
Colony and
of
serve-
renom¬
Gardner,
the
to
Kenya
President of Lowry & Co., to again
serve as Treasurer.
and, un¬
been
nominated
C. E.
Unterberg & Company, 61
Broadway, New York City, are
distributing an interesting memo¬
randum
year.
A
on
The
Public
National
new
,
.
on
Exchange."
.
Jan. 20.
New
Bradford
Cgo. Exch. Members
:
KNOXVILLE,
previously connected
detriment with Cumberland Securities Cor¬
Hawes
the NASD
With over
Australia, in
Coffee-Sugar Exchange
CHICAGO, ILL.—Pierre StraTENN. — Fisher
Maine Investment Dealers Association Hawes has become associated with lem, of New York, partner of
Hallgarten & Co., and Lewis I.
J. C. Bradford & Co., Hamilton
of
Chicago, were
National Bank Building, as man¬ Brunswick,
elected to membership in the Chi¬
ager of the bond department. Mr.
DEALERNO. 108
It is
NY
(Signed) NATHAN C. FAY, Secretary
Dec. 23, 1943
of
Bank and Trust Company of New
Nominating Committee
they have already done, so,
York, shares of which the firm
was
named consisting of G. V.
to make specific applications im¬
believes
offer
an
intrinsically:
Christman,
Chairman;
Carl H. sound investment.
mediately for approval of such
Copies of this
Stoffregen, William B. Craig, Ed¬
memorandum may be had from
payments, with respect to which
ward A. Weber and Walter Mur¬
applications member firms will
C.. E. Unterberg & Company on
phy,
VV
■■
,;v
receive the cooperation and assis¬
.request.
■
'."r»T
The annual election will be held
tance of the Association and the
F. Hawes With
Faithfully yours,
,
and
f
less
the Chairman and Board of Governors of the National Association of
Securities Dealers, Inc.
all States
countries.
departments" and others:
commissions
Wef believe that this limitation rule should have been sub¬
to
V
i
so,
of
Exchange for 1944.: Mr. Lamborn
overriding has
held at Portland, Maine, Dec. 17, 1943, those present
by Exchange authorities with the
including Directors, Maurice A. Bowers, Walter T. Burns, A. Clinton Office of Economic Stabilization
Edgecomb, Harold D. Jones, Chas. W. Leonard, Stanley H. Patten; in Washington on Dec. 29, that the
President, Carrell K. Pierce and Secretary and Treasurer, Nathan C. only possible approval of such
Fay, expressing the will of our membership as ascertained by poll, payments other than in conform¬
it was unanimously voted to submit to the National Association of
ity with the amended regulations,
Securities Dealers, Inc. an expression of its disapproval of the so- must be on an individual applica¬
called "5% profit rule."
tion basis.
Member firms, there¬
We submit this expression of disapproval in the
spirit of cast¬ fore, are advised before closing
ing a dissenting vote so that it may become a part of the record.
out their books as of the end of
Our reasons for so doing include the following:
the year to make provision for re¬
mitted
in
New Zealand, Fiji, Papua and New
Guinea,
and London, it offers the most complete
Lamborn Named To Head
notice concerning the payment
Association
;
George Street, SYDNEY
Ody H. Lamborn, President of
heads of
meeting of the Directors of the Maine Investment Dealers
DAVIDSON, K.B.E.,
Manager
General
/,
V Commercial Register
Y;"YY.Y
Exchange since August when
he succeeded Frank C. Russell,
"With regard to: the payment who
resigned.
The Nominating
of a share of profits or overriding Committee of the
Exchange has
Gentlemen:
At
on
heads of
-
,>£150,939,354
Branches in
commissions to
.
30th
us
should form another association that will do
The New York Stock Exchange
the Maine Investment Dealers Association
lit
directly but we are opposed
to it in principle and would have so voted if given the opportunity
which we definitely feel should have been provided us. Furthermore,
it is our opinion that if the NASD does not begin to show indications
of a desire to serve the numerical majority of their members, dealers
issued
The Secretary of
NO.
The NASD 5% rule does not affect
Of Share Of Profits
107
NO.
£23,710,000
,
Aggregate
Assets
Sept., 1941
serve as a
Commercial &
New York Stock Exchange
Spruce Street, New York 8, N. Y.
Advises On Payments
%
More Dealer Comments On NASD Rule
£8,780,00®
6,150,000
8,780,000
Fund
for you "over-chargers"
And anyway, why
munications should be addressed to Editor,
Financial Chronicle, 25
£
Capital
Reserve
In the meantime if I steal any of your customers because
have over charged them—don't get sore about it because in this
I, in effect
1817,
Reserve
ONE MAN SEC and NASD. If it weren't
I'd have a tougher time getting business.
J
don't you resign from the NASD as I did?
The SEC has been 100% with me and if enough get out of the NASD
ergo, there will be no NASD. But maybe I'm getting childish in my
simplicity.
(Signed) Number 1,000
way
'
•
now.
Such additional letters from dealers, on,.the 5% profit
spread
Ltd.
"
•
This is strictly a home-made letter written on a
long
'
Bank,
DEALER NO. 110
.
reading "SEC and NASD Attempting To Establish Customs
and Usage in Securities Business by Fiat" by A. M. Metz
Deacon's
Glyn Mills & Co.
copies of such pro¬ Let them bear the results personally for their ideas. Every other
Y
tests.) This rule should not, must not, and will not stand. politician has to do it.
But let them have a good time while it lasts, boys. It won't be
Dealers and associations should cooperate in* any organized
bring about its rescission.
Those interested in this subject will not want to miss
ASSETS
Associated Banks;
•
same
,
£108,171,956
exchange firms have been making excellent progress in the overthe-counter business in addition to having had a good raise in com¬
the
,
64 New Bond Street, W. I
from
seems
Smilhfield, E C. I
Charing Cross, S. W. I
Burlington Gardens, IV, J
pelled to turn over the stock exchange business they originate to
member firms? Charging a service commission is, in my opinion,
"Chronicle" would appreciate receiving
effort to
Bishopsgate, E. C. 2
8 West
happened to the proposed division of Stock Exchange and
Over-the-Counter business? What is fair about Stock Exchange firms
It
Scotland
LONDON OFFICES:
What
mission rates.
OFFICE—Edinburgh
Branches throughout
\
trying to make the rule stick. The most persuasive argument noon after reading a few of the comments on the 5% profit clause.
in favor of it they seem able to muster is that "most" (what¬ SO if this letter doesn't look as though it was written by a professional
-:'Y
ever that means)
dealers can live on a 5% mark-up basis, stenographer, you are perfectly right—it wasn't,
we
Royal Bank of Scotland
will be
accepted.-As we see it the only organization which could be of benefit
to the actual retail houses would be one which would exclude mem¬
bers of any exchange.
ow?
v.*.v '
'
• ■'
: ' "
Looking the facts straight in the face—exchange members and
retail houses have never had any thing in common and their inter¬
ests are of a direct opposite and conflicting nature.
!
or
hearings
should
now
Thursday, January 6, 1944
S,
■
unreasonable
as
FINANCIAL, CHRONICLE
THE COMMERCIAL &
82
was
poration.
-
•
-
Stock Exchange by the Ex¬
ecutive
Committee,
it
is
an¬
cago
nounced.
Available On Request
!
Schenley Distillers Corporation
have prepared an attractive book¬
let containing the first ten arti¬
cles in the series they
have been
running in the "Financial Chron¬
icle." Copies of this booklet may
be
had
to Mark
upon
request by writing
Merit, in care of Schen¬
ley
Distillers
Corporation, 350
Fifth Avenue, New York 1,"N.- Y,
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
159
Greatest Possible War Effort And
Preparations
For Reconversion Stressed By Rational Oily Bank
also available.
to whether
as
But questions arise
some
lowed to
tion
has
their
by official indexes,
substantially less than
been
most
civilian produc¬
competitors are
resume
while
companies in
to be al¬
risen
competitive field
a
measured
as
are,
people looked for.
Whole¬
sale .prices during the year have
2%
the
and
of
cost
living
The decline in
work; whether stand¬ only about 3%.
ardized or 'Victory' models are consumer goods trade has not ma¬
desirable for a time; what consid¬ terialized
at
all. : Retail
dollar
eration should be given to manu¬ sales have totaled some 9% higher,
facturers who want to make a new and it seems probable that the
product; how prices should be es¬ volume of merchandise distrib¬
tablished, and similar problems. uted, coming partly out of inven¬
These questions are beginning to tory, has increased as well.
be urgent and will become more
"This record shows that the ca¬
so as the year goes on.
pacity to produce 'butter' as well
as 'guns,' and the effectiveness of
I "All these problems have been
under study by Government and rationing, price controls and peo¬
private agencies. They are now in ple's savings in restraining infla¬
the competent hands of Mr. Baruch tionary forces, were both under¬
and his associates,, who have the estimated.
There may be a lesson
task of establishing policies and in this for the coming year.
laying down lines of authority.
"Looking into 1944, there are
kept ofi
war
.
■
Their
purpose
gram
to avert needless confusion
is to' set
in the industrial
up
a pro¬
organization, and
if they can clear the way an opti¬
mistic view of conditions during
the
reconversion
period
will
be
justified.
"The part of the problem which
;
falls upon industrial management,
namely, to
resume making familiar
is 'one which the manu¬
things,
of
this
country
are
superlatively able to solve. Their
record in converting to war work
facturers
record-breaking totals of 1943
be duplicated.
In general,
merchants are looking upon 1944
will
as
a
some
in which there will be,
a swing back to¬
year
Union Bond
time,
ward
more
They
look
sooner
normal
conditions.
forward
to
Fund "C"
getting,
more
later,
or
durable
goods
and
tomed
lines and qualities in non¬
of
more
their
accus¬
Prospectus
durable goods. They are likely to
push sales of 'substitute' goods ac¬
| i.
upon request
S& SS&.s
cordingly.
"Manufacturers have
no
knowing
some
their
be
whether
plants will
freed
Lord, Abbett & Co.
of
way
of
part
INCORPORATED
for
NEW YORK
peacetime work in the middle of
the year,
at
contracts
seems
which
or
peacetime
work,
can
LOS ANGELES
»
is
Investment Trusts
"Outlook For 1944"
be used in
evident.
It
"We
industrial
raw
materials
have
no
crystal ball
but our Investment
Department is of the considered opinion that:
plain that when the cutback
production comes, stocks
war
of
JERSEY CITY
all.
to
in
•
at the end of the year,
However, a disposition
keep down inventories of ma¬
terials, except those which are al¬
located
to
specific Government
or
CHICAGO
•
1.
Will
We
.
in
are
which has
.
.
Research
broad, long-term bull market, the first leg
a
of
been
completed.
thinking that the be heavy in almost all lines, and
2.
Certain groups of securities are
drastically undervalued at
output of the industries is now behind the stocks will be an en¬
current market levels, and thus afford
substantially greaternearly at its ceiling.
One is that larged producing capacity to fill
than-average profit possibilities
further increases in the manpower all needs abundantly. This makes
"As to the groups
which wt<S>
—
available, after allowing for the hoarding of materials in general,
believe are most drastically un¬
1944 additions to the armed forces, unattractive,
During the past
dervalued at present—they are;
are hardly to be expected.
(To be month the freeing of pig iron from
STEEL
SHARES,
RAILROAD
control,
cutbacks
in
sure,
the
productivity
of
the allocation
EQUIPMENT SHARES and LOW
Railroad
workers now employed should and aluminum production, end of Sun¬
PRICED
SHARES
among
the
may be increased.)
The second is day work for copper miners, and
equity
securities;
RAILROAD
that the goals of war production, the announcement that a program
SHARES
(discount.
railroad
in
the aggregate, have already for the liquidation of the Govern¬
bonds)
and
GENERAL
BOND
been approximately reached.
Mr. ment-owned stock of foreign wool
SHARES
in
the
discount
bond
A Class of Group Securities, Inc.
Lawrence
'
Appley of the
War is in preparation, have provided
field."
From a letter by Distri¬
Manpower Commission stated Dec. additional evidence of the easing
butors Group; Incorporated, to
af¬
28 that war production was at the in raw material supplies."
Prospectus on Request
filiated dealers.
■
rate
of $80,000,000,000 annually,
Issues of
Railroad Equipment
and this is somewhat higher than
News and Steel News were pub¬
Year-End Bond Review
the total of the schedules for 1944,
DISTRIBUTORS
lished at the year end by Dis¬
even without allowance for
later And Investment Outlook
tributors Group, Incorporated, in
GROUP# Incorporated
cutbacks. Mr. Wilson, Vice-ChairHalsey, Stuart & Co., Inc., 201 which
the
currently
favorable
man of the War Production Board,
South La Salle Street, Chicago,
63 wall street—new york
outlook for these two industries
told the National Association of and 35 Wall
Street, New York, was stressed.
Accompanying each
Manufacturers during the month announce
that
their
"Year-End
mailing was a small notice en¬ plies indicates there was no sig¬
that war production in 1944 must Bond Review" is now
ready for titled' "A
Suggestion" which read nificant difference."
exceed 1943 by 20%, but this was distribution. This annual
publica¬ as follows:
From this survey, Selected In¬
a comparison between the aggre¬
tion
presents
an
authoritative
"The
Treasury's Fourth War vestments
Company
concludes
gates for the full years, not be¬ resume of the bond market as a
Loan Drive is scheduled to com¬ that the
tween the year-end rate and the whole and
majority of shareholders
analyses of the indus¬
mence
on
Jan. 18.
You will no prefer semi-annual
1944 schedules.
■
/ /•' .%
y
trial bond market, the railroad
payments "be¬
two
for
reasons
.
,
.
.
Equipment Shares
—
and
turning • out unfamiliar
products is sufficient proof.
Obligations
,
experienced observers doubt that
the
at
(Continued from page 59)
83
war
Individuals
of
"Some comment is heard to the
effect
on
that the growing
reconversion
emphasis
to
tends
detract
£
.
from
the
war
The
effort..
argu¬
ment is that it diverts
thought and
energy—also that some people be¬
gin to take victory for granted,
and consciously or unconsciously
weaken their support of the war
The
measures.
answer
to the first
point is that events make
prepara¬
tions for reconversion imperative,
and
the
.
"On the
planning of the war ef¬
a point where it
is feasible to take up new prob¬
lems.
If people become heedless
or selfish, the cause inmost cases
is lack of leadership and under¬
standing,
Obviously, the obliga¬
premise that thq course
will permit curtail¬
ment of war production sometime
during the year, the prospect is
that
total
industrial production
also will turn downward, for civil¬
ian industry will hardly take up
tions of individuals
all
fort has reached
In the
real
are
not altered
slightest, and there is
reason
why the greatest
no
pos¬
sible
war effort, preparations for
reconversion, and such shifts back
civilian
to
production
as
war
permit, cannot all be car¬
ried on successfully together. ;
:
"People have the duty in 1944,
as they had in 1943, of doing more
to help win the war.
There is
heed for everyone to economize
and save, to buy more Govern¬
ment bonds, to work more effec¬
tively whether they are in war
plants or civilian occupations, to
Cooperate more wholeheartedly in
the ration and price control pro¬
grams, and in general to subordi¬
needs
nate their
personal and group in¬
in greater degree to the
terests
effort
and
the
the
of
war
the
The
slack.
time
welfare.
swing " smoothly
back
into
peacetime operation and the dif¬
account,
level
wartime
to
Also,
it
that
the
industrial
ac¬
understood
be
have
above—have
on
into
taken
be
should
which
of
some
—-
touched
been
of
tivity is wholly abnormal.
It in¬
cludes operation of many plants
which
will
of
and
have
use,
cover
by
The
industries
many
workers who after the war
and who should
will want to go,
back into the homes, back to
school, or into retirement.'
go,
indications
1944
in
sumers
that
are
will
fare
con¬
in
the
hower had in mind when he
re¬
but
with
smaller
inventories
in
meant when he called for national
distributors'; hands to draw upon
as
the. year begins.
However, if
the rise, in national jncome flat¬
'unity.'
tens out as the
home,
and
what
Secretary <Hull
production increase
"The
fapers, retail sales would be
business
observers
who
ventured at this time last year to
cause
pressing
form
Halsey, Stuart
ex¬
pected to flatten out also, and in¬
private matters before
A'/.
.• ■;' ■::■■
that date..
"We
sending you this re¬
with
thq thought that
minder
dealers
who
get
early start
after the first of the year will be
able to give their clients the im¬
for NC-01.
Attractive Situation
an
mediate;, attention
require
money" in the
and other
save
labor,
materials
and
paper
saved.
This
is
in¬
an
will
undoubtedly elicit re¬
plies from the funds which prefer
to
follow
the
policy
of
paying
dividends quarterly.
:■
they
they
of
teresting analysis of the question
are
,
..."',
■
The
!•••'
*
latest
sis
Empire Sheet and Tin Plate
Company offers attractive possi¬
according to a detailed
memorandum being distributed by
Hill, Thompson & Co., Inc., 120
Broadway, New York City, Copies
of this interesting memorandum
may be had upon request from
bett's
torial
by the
Hill, Thompson & Co., Inc.
American
of
Lord,
Ab-
Abstracts
f'AV'r
:;
*
.
issue
and still be ready for the Fourth
War Loan Drive."J.
bilities
*
The
old
DENVER,
recent
Shares. This fund pays
semiannually
memorandum
ments should
annual
Moun¬
the
and,
to
was
held
indicated
at
the
Albany Hotel on
Thursday, Dec. 23.
;
Despite shortages of help and
liquid refreshment, the officers of
the two groups managed to have
a plentiful supply of both, and a
good time was had by all (judg¬
ing from the abundance of head¬
icy.
in
share¬
of
quote
"Their
extremely
an
their
their choice
was
Semi-annual
Quarterly
No
the
re¬
strong
pol¬
present
preference
as
and
payments— 73%
payments
24%
preference
3%
figures relate
to
the
number of shareholders, and not
ever,
the, number
a
of
shares.
the
New
,
reprints ah edi¬
financial editor of
York
World-Telegram
in which the progress made in the
Utility Holding Company field is
cited. Abstracts sums up the ar¬
ticle
follows:
as
of
Union
"This should be
particular
of
which
interest to holders
Preferred Stock Fund,
has
63%
vested in utility
An
earlier
its
of
assets
preferreds."
issue
of
discusses
American
Shares
"answering 1944 invest¬
ment
of
as
fThe
questions."
American
believed'
to
Business
Business
portfolio
Shares
generally agreed upon three
One was that indus¬
main points.
trial activity — governed by the
supreme need to get ahead with
the war—would rise again to new
The second was that prices
would advance, perhaps consider¬
ably.
The third was that con¬
sumer goods trade would fall off.
'"The first of these predictions
highs.
WE
WILL
accept
limited
a
outlook.
The
fund
a
is
currently
How¬
common stocks,
8.0% in preferred stocks, 14.6% in
bonds, and 2.9% in cash.
A third recent issue of Abstracts
lists the portfolio of Union Com¬
mon
Stock Fund
(Continued
"B," the invest85)
on page-
1,000
re¬
Manhattan Bond Fund, Inc.
number of accounts! of holders of
The Board
of Directors
of
or
securities, for whom
and call options,
put
/'•
•
will sell
we
Manhattan
has
on a
basis.
service
■
declared
tribution
per
Bond
No.
share
Fund, Inc.
Ordinary Dis¬
22
of
payable
10
Prospectus,
cents
January
Republic
15, 1944 to holders of record
'
has been realized, and
has
been
pected.
1943
has
even
the increase
than ex¬
greater
Industrial production in
exceeded
1942
by 20%,
as
Board's index.
The
price advance,,
the
close
of
business
Investors
January 5, 1944.
FILER, SCHMIDT & CO.
&
Call
Brokers and
Pine
Street,
N.
Dealers
Y.
WHitehall 3-9177
Fund, Inc.
Distributing Agent
HUGH W.LONG and COMPANY
Members
Put
30
according to the Federal Reserve
of
Inc.
Incorporated
5
National
15
Distributors
Exchange Place, Jersey City 2, N. J.
W. R. BULL MANAGEMENT CO. Inc.
40
Is
logical
weighting In view of the present
possess
make predictions for the year 1943
were
v
Abstracts
test check of the number
of shares represented by
,
in¬
invested 74.5% in
follows:
"These
ment
next
To
More than 3,000 shareholders
to
morning).
be made.
memorandum:
sponse
endorsement
the
whether
quarterly dividends has been
by Selected Investments
Company, the sponsor of Selected
tain Group of Investment Bankers
and the Bond Club of Denver was
dealers', offices
of
semi-annual
holders, requested that they ex¬
press their own preferences as to
how
frequently
dividend
pay¬
Party
COLO.—The
prefer
A
•
or
dividends
cocktail party of the Rocky
:i:
raised
a
Held Cocktail
*
question
shareholders
aches which existed in all invest¬
The Production Outlook
'
doubt want to 'clear the decks' of
be had
reconversion.
are
employing
common
ferred to the "duty' of people back
upon request from
& Co., Inc.—ask
may
extensive
only
"The
Copies
others which could
civilian production
many
turned" to
be
civilian
no
these
Probably
ment outlook.
to
ficulties
Also discussed is the invest¬
ket.
needed
aggregate about as they have done
points in 1943, with larger production of
about what General Eisen¬ consumer goods later in the year
common
situation, the public utility indus¬
try and the municipal bond mar¬
.
Exchange Place, New York
Prospectus
from
may
authorized
be obtained
dealers,
or
The PARKER CORPORATION
ONE COURT
ST., BOSTON
the Board upon such terms to be appointed by, the Speaker
and; for such period; or periods of the House of Representatives.,
as may be agreed upon, but only
(7) Two members of the Board
if the general purpose of the ex¬ of Governors of the Federal Re¬
by
NOTICES
DIVIDEND
Text Of Dewey Resolution
Providing For
Central Reconstruction Fund For
AMERICAN
A
(Continued from page 60)
COMMON STOCK
Transfer
1944.
20,
of business January
Ipooks will remain open. Checks will be mailed.
>
R, A, BURGER, Secretary,
,
count with a group
the
CtSitrtW
has declared a regular
quarterly dividend of 50?! per share on the outStanding Common Stock, payable on February 1,
1944, to stockholders of record on January 15,
1944.
The transfer books will not close.
The Board of Directors
THOS. A. CLARK
v :
December 23, 1943
treasurer
LIQUIDATION NOTICE
Nebraska
State of
the
In
All
are
central
vided
project, is
to present claims for
hereby notified
payment.
2,
the
of
text
the
joint resolution:
>
•
■
■
Business For No
A Cincinnati
lowing
was
Foreign..Affairs.
JOINT
To
inquire: .V
to
"Do
,v
purposes.
in
bonds?"
Mr.
Street.
Salle
Stokes,
mann,
;
ticipation by the United States in
activities among the United Na-
them
F.
with
Lipp-
Sehulz;*
in
the
respect
to
present
extension of long-term
reconstruction
war,
rehabilitation,
and
stabilization,
currency
allf previously
Woolf & Co., Inc.
with Stokes,
associated
nations
the
and
with
•.
the
credits for
purposes,
the
en-
Central
3.
lished
a
com¬
as
Fund
reconstruction
provided in this joint resolu¬
shall
There
three accounts
as
in
be
fund
the
P:
follows:
A revblving fund account,
which
initially shall consist of
assigned
such
to
and
from
account
fund
trans¬
which
the
is
at
of
the
United
States;
as
may
be
assigned and transferred from the
said stabilization fund.
An administration account,
(2)
which
shall
consist
amounts
x%
istrative expenses incident to car¬
rying out the provisions of this
joint resolution.
The
authorized
is
Board
empowered to assign, sell, br
such
undertaking, in whole or in
part, upon such terms as the Board
may
otherwise
account, which shall con¬
sist of all moneys appropriated for
participation by the United States
Nations
'(b)
';; 7
/•
;
1;
v
The initial term of office
and
Relief
Re¬
habilitation Administration.
.'mem
one
initial term
the
-
the
of
be
Nations
rehabilitation account without the
Board;
the
off
approval
except
project the
total cost of which will not be in
that
in
the
case
Board
shall
be
"
.
.
:
;
.
There shall also be a'First
(c)
shall
United
the
shall be
Second Vice
a
Chairman of the
moneys
from
the
of
appointed for a term of four
years; The term of office of the
Vice Chairman and
loaned, granted, or otherwise dis¬
bursed
office
after each such member
Use Of
Account
No
5.
Sec.
of
group
other member in each such group
shall be two; years;
and,there¬
Chairman
equitable.
each
of
four years.
of a
of $1,000,000,
Board; to be ap¬
pointed, by the President; by and
with
the
the
consent
and
for
of
four
of
term
a
>; /7;.;;-V; 77j
Chairman of the Board
years.',
„
advice
Senate,
(d) The
of Governors shall be
paid
sal¬
a
at a rate equal to that of
Cabinet
officers,
and the two
ary
loans, grants,
be made' VJce Chairmen shall each; receive
therefrom upon the recommenda¬ a ,salary at a rate equal to that
tion of. the; Chairman with the ofUnder Secretary of an ex¬
exees
disbursements
or
may
the executive com- ecutive
department.
The
other
fund, established by members of the Board shall not
receive any salary for their serv¬
joint resolution.
All
loans, grants, or disburse¬ ices as members of the Board of
ments in the case of a project Governors,
but shall be reim¬
the total cost of which will be in bursed for travel, and subsistence
excess of $1,000,000 shall be ap¬
expenses incurred in the perform-"
proved by the Board, and only ance of their duties as members
' ;
approved if the purpose for which of the Board.
they are to be made is consistent
with the purposes and objectives from office the Chairman of the
of this joint resolution.
Board,
or
either
of the Vice
approval
of
mittee of the
of
7
section
(3) The United Nations rehabil¬
United
;
ernors.
par¬
terminate its participation in any
this
Board
itation
Sec.
6.
Board
of
to
Of
(a)
Chairmen
Governors
shall
There
of the
Governors
advice
and
cause
any
deemed sufficient by him. ■'
be a
fund,
composed as follows:
(1) One member, who shall be
Chairman of the Board, to be ap¬
pointed by the President by and
the
thereof, for
«
be
with
consent
of
■
The
(f)
of
the
as
Chairman
Vice
First
shall
Board
Board
serve
the
on
Chairman thereof in the
absence of the Chairman and the
shall
serve
on
the
of
Chairman
Vice
Second
Board
Board
the
Participation in Joint Account
as
Chairman thereof in the ab¬
the Senate.
Undertakings ;;;^';:-Ppp;P;P
sence
of both the Chairman and
(2) Two officers or employees the First V Vice
Sec. 4. (a) The Board of Gov¬
Chairman,
but
of the State rDepartment, to be neither
of such Vice Chairmen
ernors
of the fund,9' established
by section 6 of this •joint resolu¬ appointed by the Secretary of shall, serve as members of the
•
-
tion, through
its Chairman,
may
State.
of the Treasury Department; to be
joint account, to the extent of not
more than
50% of the total cost
appointed by the Secretary of the
Treasury.
>
> ~r ~
in the
of any one risk, with
case
other government or govern¬
(or with any duly author¬
or agents thereof) for
the purpose of promoting the eco¬
any
ments
ized agent
•
welfare
of
(1)
Vice
perform
such
connection
with
however,
shall,
other
in
duties
the activities of the fund
as
may
(4) Two directors of the Recon¬ be directed by the Board.
<;
struction
Finance
.Corporation
Cg) The Chairman .of the Board
(one from each of the two major
shall also act as the principal ex¬
political parties) to be appointed
ecutive officer of the fund* In his
by the Chairman of the Board of
Directors
of
the
Reconstruction
;
Finance
Corporation.
-
.
;;
(5) Two Members of the United
credit for
and intermediate
other circum¬
Chairmen
any
Such
.
nation
extensions of' shortany
under
Board
Two officers or emplayees stances.
(3)
the amounts in the revolving
fund account to
participate, in
use
term
notice of
7(c)
and
v-
shall be administered
fund which
Chairman of such Board of Gov¬
specified ,in paragraphs (2) Jo (7),
inclusive,, of the foregoing sub¬
section shall be four years, and
hereby estab¬
central
two
tative.-
v
is
the
of
Limitations On
Reconstruction
There
Sec.
through
United States of Mexico
government
a
United Nations Rehabilitation
nomic
FINANCIAL NOTICE
of
com¬
in the rehabilitation work of the
1. Because of the need
Section
tions
Oliver S. Stanley and Fred¬
erick JW.
'" '":'V
*'
■
for coordinated and efficient par¬
South
Albert
are
.
of
Associated with
business from offices at 105
La
*
other
Necessity For Legislation
general securities
a
1
for
and
and
by the Senate and
Representatives of. the
United States of America in Con¬
gress assembled:
1 ; •'
CHICAGO, ILL.—Philip D.
Stokes; formerly
President of
Stokes, Woolf & Co., Inc., which
was
dissolved on Jan, 3, is now
engaging
of currencies,
Resolved
House
D. Stokes
Now Philip
provide for a central recon¬
fund to be used in
reconstruction,
by
offering
and compensa¬
tions for not selling
s;; P:;7
hereafter appropriated for admin-
RESOLUTION
stabilization
business
benefits
certain
■
joint account with foreign gov¬
ernments
for?
rehabilitation,
moved
flight of fancy—that there will be
introduced a move to subsidize the
securities
.
struction
suppose—by any fond
you
which
resolution;
joint
use
deem to be to the best inter¬
'■< ; ests of the United States and
hereafter appropriated thereto, or
referred to the Committee on
Administration and associ¬
ate solicitor in the Department of
Agriculture, had been sworn in as
a
member of the Securities and
;
Dewey introduced the fol¬
Mr.
ment
Exchange Commission,' was
.
mittee of the fund.
President
December 16, 1943
investment dealer,
Agricultural Adjust¬
of the
■■■ ■
the executive
and such other amounts
chief of the benefit contract sec¬
tion
:,s'■■
the
present under the direction of the
OF
THE HOUSE
:
Robert K. Mcformer assistant
Connaughey,
■;
of
Governors
means
stabilization
REPRESENTATIVES
Sales?
that
reading
on
;;
means
The term "executive
(3)
mittee"
ferred
H. J. RES. 207
IN
of
Board
fund...
"Board"
term
$500,000,000
1st SESSION
1943.
Subsidize Securities
pro¬
(1)
78th CONGRESS
President.
DONAHUE,
S.
ED.
December
the
the
sentative
;
\for in this; joint resolution.
The
authorize the
in the joint undertak¬
ing, other than its own represen¬
joint
reconstruction, fund
(2)
receiving the credit
supervision of
of the credit by a repre¬
government
(one from each of
major political parties)
who * shall be appointed by the
System
serve
ticipating
this
in
used
As
(1) The term "fund" means the
tion.
is
Following
therefore
association
the
creditors;'.of
Dated
located- at Butte
Is closing its affairs.
Bank
National
First
The
resolution
resolution—,'
2660.
.
joint
/!'•; ■
Definitions
2.
Sec.
typically American; we know in
advance just what we are getting
into, and can stay out of a partic¬
ular project if we feel the risk is
too
great. It is my belief we
should approach the post-war in¬
ternational problem in the same
manner.
;'•■
A brief description of the oper¬
ation of the plan was given in
these
colums of Dec.
30, page
NATIONAL DISTILLERS
PRODUCTS CORPORATION
is necesary.
of friends in
financing of some
this
eco¬
nomic objectives, and only if the
will
vVV--
-
of
actment
interested
nations.
Each
national project will stand on its
own feet with all the facts known,
and with
the ultimate liability
established, the United States will
at all times be in control of its
own sovereignty. Going joint ac¬
other
quarterly dividend of
seventy-five cents per share was declared on the
Common Stock of this Company, payable Feb¬
ruary IS, 1944, to Stockholders of record at the
On December 28, 1943 a
Close
tension of credit is for sound
Rehabilitation & Currency Stabilization
COMPANY
CAN
'
Thursday, January 6, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
84
States
Senate
(one from each of
major political parties)
to be appointed by the President
financing
seasonal
operations,
and/or support of currencies when
under
speculative or economic
pressure;
or
(2)« extensions'! Of
long-term construction ior wealthdeveloping credits.).'
(b) Such jaction shall be taken
the
oi;
two
the
Senate.
.
(6) Two Members of the House
of Representatives (one from each
of the two major political parties)
absence
shall
tive
First Vice Chairman
the
act
the
as
officer
principal execu¬
fund, and in
the
of
the absence of both the Chairman
and
First Vice Chairman the
the
as
of
Chairman
Vice
Second
shall
act
principal executive officer
the fund,;
;7::7-77 \
the
■(h), A vacancy 'in the office of
member of the Board or other
officer referred to in this section
any
shall be filled in the same manner
FINANCIAL NOTICE
Second Interest Payment
the
united states of BRAZIL
Payment of the January 1, 1944 interest coupon will be made
office of the undersigned at 70 Wall Street, New York,
Debt of
To the Holders of Dollar Bonds
-
the United States of Mexico who have assented to the terms of
an
agreement dated November 5, 1942 between United Mexican
States and International Committee of Bankers
who surrender their coupons
■
'
Holders
securities
of
of
on
the
Mexico and
External Public
Debt
of
the
United States of Mexico who have hot previously accepted the
offer of the Mexican Government for; fhe
on
a
but
modified basis
who
now
desire
securities with the
been
duly
Mexican
as set
to
registered^
Decree.
resumption of service
forth in the terms of said Agreement,
accept
said offer,
undersigned, provided
as to
Letters of
,
may
'
deposit their
said securities have
,non-enen$| ownership under- the
Transmittal'.for assenting
to
the
terms of said Agreement and for obtaining fiscal payments
thereunder, including payment of the July "1, 1943 coupon;may
its States and
In accordance
of United States of Brazil,
Municipalities:
with arrangements made with the representa¬
Council, Inc.,
New York, and the Council of the Corporation of Foreign
Bondholders, London, the President of the United States
tives
V
for payment.
person
vacanqy
at the
N. Y. to all holders of any issues of the External Public
appointed to fill the
shall be appointed for;
unexpired term of his pred¬
ecessor.
V'.':
V;■ ■;/ v-.Y.'
(!) The Board shall meet on the
fourth Tuesday of each month in
the offices of the fund, at 9:30
antemeridian,
and
may
hold
special meetings at other times
the
Public Debt
External
on
original appointment, and
the
as
of the Foreign Bondholders Protective
of Brazil has issued
Decree-law No. 6019 of November 23,
call
on
rum
of
action
of
eight
including the Coffee Institute of the State of
and the Banco do Estado de Sao Paulo.
bers
The details of this Plan are
tive
being studied with the respec¬
Fiscal Agents, and a complete statement of its terms
Board,
present are Mem¬
Congress.
Neither the
Chairman of the Board nor the
Vice Chairman thereof shall be
entitled to vote in the proceedings
of
the
of
a
Commission.
■
',o.
C. Souza Lemos
Agent
January 3, 1944.
r
'
purpose
whether
except
in the, .case
counted for
determining
of the Board
,7,
vote, or be
a
of
quorum
present.
*
Executive Committee
pan american trust company
January 3. 1944,
Board
tie
the
is
BRAZILIAN MISSION
,
if at least two
only
but
of
will be
proceedings now pending with the Securities and Exchange
simple majority of the
of the members
and conditions, so
far as the same apply to the Dollar Loans,
published promptly upon completion of registration
action may be
of business
action
Further information may be obtained from the undersigned
or from
counsel for the Mexican Government and the Fiscal
Fiscal
shall consist,
members. In the trans¬
taken by a
Sao' .Paulo
Board, for the trans¬
business,
1943, authorizing a Plan for the general and definitive regu¬
lation of the external loans of the Federal Government, as
well as those of its State and Municipal Governments,
be obtained from the undersigned upon request.
Agent, Messrs. Hardin, Hess 8c Eder, 74 Trinity Place, New
.York, n. y.
of the Chairman. A quo-;
of the
J. Paes Barretto
'
;
Sec.
7,
(a)
ri>-
There shall be an.,
executive committee of
which
shall
the fund,.;
consist of—
,7y
(1) the Chairman of the Board',,
Volume 159
Number 4244
who
chairman
shall
be
of
85
Accounting Department And
the
executive committee;
(2) one member of each of the
groups
specified in paragraphs
(2) to (7), inclusive, of section
Other Departments And
6
(a), such members to serve on
executive
the
terms of
for
committee
six
Sec.
11.
maintain
ment of the fund,
which shall at
times maintain complete and
all
respect
the
when
the
of
executive
committee, and
the
and the First Vice Chairman
Second
the
act
Vice
chairman of the executive
as
committee.
shall
shall
Chairman
not
Such
serve
under
committee
Chairmen
Vice
the
on
any
executive
other
cir¬
cumstances,
The; executive
(c)
shall meet
on
committee
the first three Tues¬
the
by
or
of
operations
the
and
acts
Department,
by the Board,
Accounting
approved
shall
with
account
decisions
All
and conclusive and
shall be final
in the absence of both the Chair¬
man
all
to
fund.
of
of
books
accurate
months;
(3) the senior executiv^officer
of each of the main divisions of
organization of the fund.
(b) In the absence of the Chairmart, the First Vice Chairman of
the Board shall act as chairman
Depart¬
Accounting
an
shall
The Board
(a)
subject to review
other department, agency,
be
not
any
Investment Trusts
Divisions
<
^
(Continued from page 83)
of
ments
which
(b) The Accounting Department
>
The average
price of the 41 portfolio securities
present is $12 % as compared
with
folio securities
to
their
1937
all to return
were
appreciation
average
amount
to
132%.
of
Is
Cash
a
Posi¬
of#
bulletin
goes
rising
prices."
various
their suitability for
A quorum
all matters.
on
.•
nancial items
appoint subcommittees thereof to
study,
with
representatives of
other governments, projects-, with
respect to which joint account
undertakings are proposed, and
the
for
preparation
of
reports
^vith respect to such projects,;.
from
the
United
States
for
purposes
the
Treasury
for
of
emergency
the revolving
fund
any - fiscal
year,
amounts not in excess of 10% of
in
account,
the amounts
appropriated to such
for
such
year,
and
account
amounts
so
borrowed shall be
re¬
paid to the Treasury from .the
appropriation made to such ac¬
count
fqr the
following
fiscal
year.
and
holding in
a
of
all
provide
class,
invest¬
as
a
twice
the
'inflation
same
insur¬
ance."'
-
!<:
'
....
of
stocks,
as
the
'blue
chips,' a
investment is required to
smaller
gain
these
approximately
move
fast
dollar
per
Since
ment.
securities,
maximum of 'inflation
a
insurance'
as
of listed
National
*
Securities
Research
&
and
division
established.
so
traded
12.
There
authorized
to
hereby
are
be
appropriated,
lower
stocks
priced
chosen
for
veloc¬
ity,"
The folder points out that
from
the
1942
low
the
to
1943
out of any money in the Treasury
not
otherwise
appropriated, to
high, National's Low-Priced Com¬
each of the accounts in the
fund
106%.
specified
such
Pro¬
in
amounts
as
section
be
may
vided, ; however,
may
make
from
the
3,
necesary :
That
additional
stabilization
Congress
transfers
fund
at
Stocks Series advanced
mon
Calvin Bullock has issued
folder
all
over
a new
Dividend Shares, listing
dividend
payments by that
on
fund from 1933 to 1943, inclusive
present Under the direction of the
The total amount distributed
President of the United States, to
the revolving fund account.' The
tb*
Board of Governors shall annually
for
Congress
a
submission
to
the
budget estimate of the
amounts
required for the pur¬
>Yy Of "Governmenty-:;yy;;V
poses for which such accounts are
Sec.
9.
All
departments and to
be used.
agencies of the Federal Govern¬
ment
shall
cooperate with the
fund in making available to the
fund, and to the officers and em¬
ployees thereof, such statistical,
•
*
-
/
'
.
>
•
•
mm
$22,000,000.
Based
offering price at the beginning of
each year the per cent, return on
Dividend Shares over the 11-year
period averaged 5.55%, including
1.89% from net security profits,
The
December
Bullock's
of
issue
Perspective
an
Calvin
contains
a
scholarly discussion of the "bank¬
ing position and the bond mar¬
.
Growth Leader
In
on
ket." A number of charts
interesting survey of five
largest processors in the
to
illustrate
the
are
used
of
trends
the
various
of the
monetary factors.
One
economic, and other information
canning
industry, prepared by particularly striking illustration
possessed by such,. departments
shows money in circulation rap¬
Blyth & Co., Inc., and Reynolds
and agencies
as may be useful
& Co., Stokely Brothers & Com-' idly .approaching the point where
for purposes of carrying on the
pany is shown as achieving since ib will exceed the total U. S. mon¬
activities of the fund.
/
1935 by far the greatest growth etary;!, gold: ,-stock.
Whereas the
of any company in the industry gold, stock has remained relatively
;
Personnel
for which figures are available. stable during the past three years
Sec. 10. (a) Except as provided
According to the study of the sit¬ *nd )is now in a declining trend,
in subsection (b), the executive
uation, the remarkable progress of the sharply
upward
curve
of
committee * shall appoint all em¬
the company during the past four money in circulation shows no in¬
ployees necessary for the carrying
years, the sound financial position dication of topping off.%.V:;
on
of the activities of the fund.
*
*
:b:>~ //'
achieved, and better-than-average
,
"
Technical
advisers
perts may
and other
ex¬
appointed without
be
rpgard to the civil-service laws,
and their compensation may be
fixed by the executive committee
without regard to the Classifica¬
tion ; Act
of
1923,
as
amended.
provided in subsection
(b), all other employees shall be
appointed in accordance with the
civil-service laws, and; their, com¬
pensation shall. be fixed in ac¬
Except
as
cordance
Act of
with
the
sales
growth
over
the past eight
combine to warrant
lished
by
Street
Investment
sinking fund debentures of Stoke¬
our
ly Brothers & Company, Inc.
Copies of the survey may
had
upon
request
either
be
from
Blyth & Co.,,Inc., 14 Wall Street,
New York City, or from
Reynolds
& Co., 120
Broadway, New York
City.
■
Low Priced
New
Board,, and shall make such re¬
ports as may be required. Such
persons shall be appointed from
offer
list of nominations made to the
by
executive
the
chairman
committee.
The
of
the
Board
pub¬
Broad
the
Corp., surveys
potential capacity to produce
goods. The conclusion
is reached that
ductive
ereat
our
capacity
as
post-war pro¬
will
not
be
as
Suggestions
York
Stock
Exchange
and
other leading national
have prepared an
of
low
the
exchanges,
interesting list
priced suggestions which
speculative
attractiveness,
firm believes.
Copies of this
list may be obtained from the Sta¬
noted
into
tistical
Reserve
Board
Index
all deferred demands
a
can
appoint
such persons
In view of this
state
that
of
t<f time
all the
are
recated;
cite
To
from
Shipshaw
billion'
horse¬
power hydro-electric undertaking
in Quebec was the subject of un¬
favorable
comment
here,' prin¬
cipally because certain high pri¬
ority material was diverted from
this country. However, this colos¬
sal power-plant was an essential
cog in The United,-Nations' war:
machine and helped Canada to
supply 40% of the total aluminum
requirements.
vf /.
The
Oil project received
Canol
blistering
of
more
chiefly
criticism
its high
account
on,
which
cost,
incidentally
repre¬
sented about half the amount
ex¬
pended each day for war purposes.
Moreover, it was a superb piece
of engineering on the part of our
Army technicians, and is an in¬
valuable
and
an
unexpectedly
large source of fuel for our opera¬
tions
the
in
Also
Northern
there
is
•
understanding
Turning to everyday affairs, it
interesting to record yet another
resounding defeat of the C.C.F.
is
party. In the
Toronto civic elec¬
tions held New Year's Day, every
C.C.F, candidate
defeated by
was
wide
margin, and it was sig¬
that compared with the
previous election, the number of
voters was doubled.
.y;:,
With regard to the market for
the past week, the year ended
and the New- Year began with the
recent improvement in tone well
a
nificant
,
maintained.
Direct
virtually
were
tionals
Dominions
unchanged.
better
were
with
are
There
was
medium
a
resumed enquiry for
Ontarios on a 3%
basis, but business was restricted
by lack of supply.
; "
r
term
and
Coiumbias, Nova Scotias
New Brunswicks
and
were
Bond
fore
such
Should
steadier
accusation be levelled at
Internal
making
an
shipment.
with
the
issues
4%s,
75%, bid.'.
continued
and
that
country
the United Nations, and
other smaller acts of gen¬
erosity, is in process of sending
100,000 tons of wheat to alleviate
famine fn India and 15,000 tons of
any
of
among
wheat
monthly
to
Greece
as
a
gift of the Canadian people?
Such
unworthy
obviously
the
are
dications
for
of
renewed
a
demand
Canadian
market
securities, and the
should
soon
regain its
previous buoyancy, especially as
any doubts concerning the Can¬
adian political outlook now seem
to have been effectively removed.
criticisms
of
work
a
RR Credit
short-sighted minority, and the
truce to this small-minded bick¬
Pflugf elder,y Bampton &
61
Broadway, New York
ering.
wel¬
Imembers of the New York Stock
col¬
Exchange, have issued an inter¬
esting discussion of the present
and future position of
railroad
securities, particularly reorgani¬
zation securities, by Patrick B.
majority
of
Canada
our
comes
laboration,
tance,
us
would
needs
call
and
wholehearted
and
financial
our
past
and
assis¬
technical,
has been invaluable in the
nomic
development of the
minion.
Moreover,
a
from
eco¬
Do¬
the
will
ultimately
prove
our
best
international investment. Spirit¬
ually,
our
close
relationship* is t
McGinnis.
sion,
"A
Reappraisal of
from Pflugfelder, Bampton & Rust
upon
request.
;
'■'& Company
STREET, NEW YORK 5
WHitehall 3 -1874
CANADIAN SECURITIES
Government
*
Provincial
City^
^Railroad Credit," may be obtained
Taylor j
64 WALL
Rust,
Copies of this discus¬
entitled
out
firm
the Canadian dollar in the
voluntarily con-:
market
was
steady
at
tributed a gift of a billion dollars "free"
r
worth of goods to Britain, that is 10%% discount.
Now that we are past the year
now making
available a further
billion dollars of mutual aid to end period, there are definitive in¬
a
mar¬
Fund,. Inc.---
quiet
but
Manitobas
concerning urgently needed
imports of feed grain from Can¬ were in better demand with the
ada, on the grounds that the medium term issues quoted on a
basis.
Saskatchewan
were,
Dominion
has
employed
sharp 4%
practice in awaiting a temporary weaker with the ;.4%'s of 1960 of¬
-emission of the import tariff be¬ fered at 87% > but Albertas were
cism
unchanged,
glutted with goods.
Manhattan
5's
October,1969, in demand at 11$
and the 4V2's of 1956 bid at 115%.
Dividends
two compre¬
Na¬
the
of
British
criti¬
state
a
among
the world.
Pacific.
' current
real
the English speaking peoples of
instances
few
—the
even
of
time
to be dep¬
more
a
stepping stone towards
a
pin-pricks
the
administered
are
happj^
relatively
affairs,
Department of Ira Haupt
Co. upon request.
Also available
the
the lion's share of
is
circulars
on
with¬ hensive
Engineers Ordinary
Distribution
No.
22
regard to the civil-service Public Service Company and New
amounting to 10c per share, pay¬
laws, and fix their compensation England Public Service Company,
without regard to the Classifica¬ copies of which may be had upon able Jan. 15, 1944, to holders of
tion Act of 1923, as amended.
request from Ira Haupt & Co.
record Jan. 5.
may
with
publicity. The 95% is taken for granted and every major form of
collaboration has been so simply consummated that, generally speak¬
ing, the situation is considered as perfect to all intents and purposes.
be satis¬
short time and the
relations
our
perfect—but the remaining 5%
is the irksome portion which sometimes receives
ing increasingly apparent that it
factors
likely to be in the range of 150
to
160
and
possibly somewhat
higher within two years after the
war is
over.
This suggests that
it is not likely that we will have
a productive
capacity so high that
ket
about 95%
present time. "Taking
consideration, it is felt that pro¬
capacity in terms of the
fied in
are
materialistic angle, it is become
various
Federal
of human capabilities
scope
observers seem to
many
think at the
the
of
sponsor
ductive
quired to investigate,^ or to super¬
vise the performance Of, any un¬
dertaking of the fund. Such per¬
sons
shall be responsible tb the
Board
Letter
peacetime
persons
a
Street
good
a
Ira Haupt & Co., Ill
The Board may- appoint J
Broadway,
whose services may be re¬ New York City, members of the
(b)
Broad
investment ranking for the 3%%
years
-Classification
1923, as amended.
The
the
Dominion of Canada
ex¬
ceeds
Toronto <£ Montreal
By BRUCE WILLIAMS
Within
common
market
Wires to
Canadian Securities
stocks, the most volatile
classes
United
the
in
common
The Board: shall establish Corp. has published a revised
such other, departments and divi¬ Jolder. .on its.. Low-Prided Com¬
sions of the fund as it may deem mon Stocks Series.
The invest¬
necessary and shall assign duties ment is described as "a group of
and functions to each department well
.diversified
and f; actively
prepare
Cooperation Of Other Agencies
securities
(d)
Sec.
Sec. 8. The Board is authorized
borrow
be of assis¬
may
and. agriculture
States.
/
For Revolving Fund Account
to
as
tance to private capital, industry,
Appropriations; Budget Estimates
?
Authority To Borrow
of
the
be necessary for the making, period of rising prices. The con¬
by the Accounting Department, of clusion is reached that "low priced
shall "consist of half of its the reports above referred to, in¬
membership, but only if at least cluding a complete record of all
one Member of Congress is pres¬
the undertakings of the fund, both
ent. In the transaction of its, busi¬ those
accepted and those rejected.
ness,
the
executive committed The Historical Division shall also
may act by a simple majority: The ! prepare
a record
of, and make
chairman of the executive;, com¬ available to the
public, informa¬
mittee shall have the power * to tion as to such economic and fi¬
(d) The chairman of the execu¬
tive committee is authorized to
types
discuss
to
on
Street, New York 5
Direct Private
The
may
ness
v
14 Wall
tion?" The current issue of Key¬
because
Congress,
pamphlet,
Incorporated
Sound
publish semi-annual reports stone Corp.'s Keynotes raises the
of all operations of the fund, and question.
"Money in the bank,"
such reports shall be sent to the states the bulletin, "has always
seemed to be a comfortable posi¬
President, the President of the
Yet, an unemployed cash
Senate, the Speaker of the House tion.
of Representatives, the head of balance since the outbreak of the
each executive department
and war in 1939 has lost 28% in value
Member
a
request.
on
Wood, Gundy & Co.
^
shall
each
contained in
are
of which is available
copy
would
%
which, shall keep such records as
vote
These appraisals
highs, the resultant
days of each month in the offices
of the Fund at 9:30 antemeridian,
of the executive com¬
Canadian Securities
the
1937
average high of
In other words, if the port¬
$29.
(c) The Accounting Department
shall have a Historical Division,
mittee for the transaction of busi¬
Year-End Valuations
•
of
up
at
:;aHow
officer of the Government.
made
are
lower priced stocks.
♦
Municipal
*
Corporate
of
part
are
Governor Bricker Says
daily
our
There
America.
in
are
life
here
Society
Walter
side to freedom of speech
and of the press, but we believe
in it. We shall see to. it that the
Bill
of
this
(Continued from page 58)
war
come
unscathed
-
we
*,
.
h
•
I
living in our
who seek to make a
country. Everyone engaged
in the
the conviction that man can
himself, that self-govern¬
ment will respond in war and
crisis as well as in peace and
upon
where for
govern
ful
production, transportation or sell¬
ing
of goods must utilize his
money and ability to the fullest., prosperity, This year will deter¬
mine whether the place of the
extent to employ others.
in, society
shall be
If high employment is to be individual
maintained and prosperity pre¬ strengthened or whether he shall
served, this great industrial plant
must be utilized to the fullest ex¬
become more
and more dependent
organized government. This
tent and production kept even at government of ours was organ¬
ized as a protection against the
a higher level than that achieved
in the pre-war period. This great power of the masses as well as
classes, — as
a
protection
industrial
plant has built the the
the mightiest navy of all tpne. It against the ever encroaching pow¬
has equipped not only our own er of government itself.
So, faith in our system of selfmillions of men with arms and
clothed and fed them, but it has government' means that we must
helped to clothe and feed and keep it as near the home as pos¬
equip the armies of our allies. sible. We must keep it close to
The year 1944 should mark the the heart and the hand of the
way
in which this tremendous people of America and • respon¬
force will be utilized in the years sive to their guiding will. A great
contribution can be made by this
ahead.
•
v./
None of these great problems nation through precept and ex¬
ample, through guidance and en¬
before America will solve them¬
selves. There must be work, sac¬ couragement of the other nations
upon
.
rifice, integrity and foresight. And
of
back
all
there
endeavors
our
mighty faith. Tonight
1 wish to give you a declaration
must
be
a
of America's faith,
We
1.
v
in
our
forces. An invasion of the
armed
—that
for
of
and
government,
the op¬
have
should
man
man
every
free
this
in
woman
/■/
;;
equality
in
believe
We
4.
gov¬
the will
responsive to
of their people.
ernments
opportunity
faith
have
must
keep their
world to
the
of
portant
portunity to labor without re¬
straint, and to enter other fields
without
hindrance.
He
should
wise
have the right to
continent of Europe, in which our
army
the
a
and navy will take an im¬
part, is imminent. Like¬
great offensive on land, on
sea
and in the air is nearing
in the Pacific. We know our army,
and marines will meet every
challenge. Never let it again be
said by friend or foe that America
navy
is
decadent
a
nation.
Our
men
conduct his own
business and build it to a bigger
and better business. He
should
have
the opportunity
to move
from
the
to
j position of the laborer
pqsition of the employer.
in humble circumstances
start
to
to
and
opportunity
the
have
should
He
have
fought from Arctic snows
tropic jungles.
They have
the
marched in the heat of India and
great heights in this
land. That has been the glory of
Africa.
America.
They
world around
and
on
the
land, in the skies
and under the seas. They
taken
have
fought
have
on
toll
a
of
the
enemy
wherever they have met him many
times
our
and
navy
our
men
own
are
are
losses.
Our army
brilliantly led and
heroically fighting.
This nation is truly
a
young
and
rise
to
been the
It has
beacon
that welcomed the humble
our
shores. We demand that
iight
to
society in America be not strati¬
fied, that it be not broken up
competing with each
other for special benefits. We in¬
sist that equality of opportunity
be preserved and that every one
into
strengthen our faith and fill our
with pride.
They - bring
home to
us
a
new
meaning of
sacrifice and a new realisation of
other., '.V
our
faith/There is not a.home in
America
does not
from
go up
which
a
prayer
daily for lives of
loved ones.
2.
We
must
have
faith
in
our.
fellow-man. No nation whose citi¬
zens
lose
faith
in each other
can
hope to long endure. Great cour¬
age brought the American*to our
shores. A super-human faith in
assures
5;
We
Rights.
right
equal
an
to
every
•'
■
Therein
the. individual
is
the
Bill
the
in
believe
preserved
sacred
•
of
exhausted. Let
war.
They
bring a better life and greater
to
the peoples of the
of
ites
show
:.
believe
We
Providence.
in
faith
have
v/'..
Divine
in God.
life.
and which attempts
this yearning of the
soul of man to reach out toward
ties
of
life,
destroy
tion
Morris
a
Cohon,
Let
in
have the faith to know
us
will
God
which believe
nations
those
that
ultimately
lead the
peoples of the world to the dawn
of the new day of peace and good
will. I do not care what a man's
religion may be, if it is founded
upon moral law, if it has behind
it a spiritual power and belief in
God,
.
that
is a better man
man
his nation is a better nation
and
and his practice of
his belief
for
finally we have faith in
the America of tomorrow and be¬
9. And
lieve
the
that the war
that men
yet to be. For
is being fought. For
is
best
the
following stocks
the
problem of
markets or profits
of
new-study
disclosure
of
the
containing an analysis of recent
cases.
This interesting booklet,
entitled "The Broker-Dealer Cus¬
is
Problem,"
tomer
available
dealers at
and
brokers
We have been
to
of
cost
a
chasing U.S.
Steel for
a
far it has
stayed out of range.
L
t
a s
recommendation
49% to
50%.
was
I advise you now to
Steel
so
was
50%; recent low
Big
get
few weeks but
and try
for¬
for
Bethlehem Steel instead.
,
$1 per copy, and may be obtained
Cohon.
from Morris
Z
Buy BS at 56%-57 stop at
55.
Sidney H. Kahn Dead
Sidney H.
Kahn, Chairman of
of Straus Securities Co.,
the Board
Mr.
Kahn
Vice-President
years
of
,
in¬
the
Chairman
becoming
Securities
of
the
when
Co.
the
formed in 1933.
was
also
/
;
twenty-five
of S, W, Straus &
vestment firm
Co.,
for
was
He had
Vice-President and di¬
been
rector of the old Straus, now
well
Ex-Cell-0
are
and
American Smelters.
heart ailment
a
Two other stocks which
;
act
Buy
with
Ex-Cell-O.
21-22
at
stop at 19 and Ameri¬
a
Smelting 35%-36% stop
can
at 34. In addition to the above
still long of Western
you are
Union
43%.
"A"
bought at about
Hold it.
the
American National Bank & Trust
CO.
It
,
is
possible
before
that
read this the market may
have already advanced to a
you
To
Manage Depts. For
level where
Ernst & Co., New York
Ernst &
Co., 120 Broadway, New
City, members of the New
Stock Exchange, announce
York
Charles
that
in
charge
L,
of
Benesch
the
firm's
will
stocks
are
none
of the above
available.
But that
is
a
;
More next Thursday.
chance you
have to take.
be
Institu¬
tional and Syndicate Department,
and Nathan Abell will manage the
Arbitrage Department after Janu¬
ary 3rd, 1944.
—Walter
[The
article
time
views
do
not
coincide
Chronicle.
Whyte
expressed in this
necessarily at any
with
They
those
of the
presented as
are
those of the author only.]
Now Schwamm & Co.
>
Following the dissolution of H.
L.:,
Schwamm
&
Saul
Co.,
the formation of Schwamm & Co.,
to act
LAMBORN & CO.
dealers in state and mu¬
as
WALL STREET
99
nicipal bonds, with offices at 60
Broad
Street,
NEW YORK 5, N. Y.
New York City.
and women work tire¬
lessly in the factories and the of¬
fices of our land. In that faith
the farmers till the soil
vest
.
of
portions
and Elizabeth Schwamm announce
;
that faith.
other
market
Broadway,
42
York City, has had printed
New
York
■
In
Customer Problem
Divine, is doomed to destruc¬
the
/
recommendation.
dry 33-34 stop at 31.^
The Broker-Dealer
firm
to
Here
Curtiss
previous signals means a are recommended- American
complete reversal of market Steel Foundry 24-25 stop
22%; American Car & Foun¬
Straus
powerful thing in the indi¬
vidual life. Any nation which de¬
nies God and the spiritual quali¬
rec¬
of
more
most
didn't
weeks
recent
renewed signs of
.Such action in the face
The
spiritual forces of life are
powerful than the material
forces. The yearning of the soul
to live now and hereafter is the
Buy
any
after six weeks' illness.
We
ommended.
be
or
stocks
new
*
Chicago, died of
be healed.
cancelled and
Douglas will probably also
down for some
go up but this stock moves too
firming up even if the favor¬ rapidly to permit of weekly
world, that the wounds of war and
bitter hatreds which follow war
8.
occurred
reaction
had pointed
time began
Stocks which
freedom
may
the
event
should either be lifted
they are:
Wright "A"
had thrown off the fear of the 15% to 163/Cstop at 14. Buy
Lockheed 15-16 stop at 13.
offerings.
have faith that
us
setback of ap¬
a
proximately five points would
occur.
In Tuesday's action
the market gave signs that it
period America may help
in that
to
and har¬
In that faith we
and have our being.
the crops.
live and move
May 1944, as we enter it this day,
bring to us a great new faith in
ourselves, in our fellow-man, in
God and in our country.
Haseltine Withdraws
CHICAGO, ILL.—Bacon, Whip¬
ple & Co., 135 South La Salle
Street, members of the New York
SUGAR
Exports—Imports—Futures
and Chicago Stock Exchanges, an¬
nounce
has
that Donald M. Haseltine
withdrawn
from
partnership
%//:
DIgby 4-2727
in their firm.
Ye
cisions of the courts of the
mon
turies
law.
During
the
all
these
individual's
freedom of
The dawn of
Rejoice,
your
That
assembly, all of which
ampler life;
whatever
....
:
anguish rend
heart,
God has
given you for a
priceless dower,
To live in these great times and
have-your part
In Freedom's crowning hour;
That you may tell your
see the light
sons
High in the heavens—their
itage to take—
"I
saw
the
powers
saw
the Morning
who
current
situation
her¬
Established
Lum¬
attractive
Company
offers
possibilities according to a memo¬
randum
prepared
by • Buckley
Brothers,
1529
Walnut
Street,
1856
H. Hentz & Co.
Members
Philadelphia, Pa., members of the
New
York
Stock
Exchange
New York and
New
York
Curb
Exchange
Philadelphia Stock
Exchanges. Copies of this inter¬
esting memorandum may be ob¬
tained from the firm upon request.
York
New
Commodity
Chicago
Orleans
New
And
Cotton
Exchange
Exchange,
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanges
Over-Counter Review
Bristol
& Willett,
115 Broad¬
New York City, have pre¬
pared the current issue of their
"Over-the-Counter
Copies
of
this
R
e v
i
e
interesting
view" may be had from the
break."
the
in
stock of Long Bell
ber
way,
of Darkness
put to flight,
I
Attractive Situation
The
common
v;
eyes
death shall rise
cen¬
in
faith to look with
Beyond the tragedy of a world
at strife,
And trust that out of night and
com¬
voice
that have
fearless
to
leges for which generations have
fought. ■» Into it is written the
spirit of the Magna Carta and the
Bill of Rights of old England, the
written laws and the great de¬
has expressed
lines:
Sir Owen Seaman
that faith in these
privi¬
society has been more and more
emphasized.
When
government
himself drove him ever farther has not recognized it, he has risen
into the west, across the plains up
and demanded freedom of
and over the mountains in the speech, freedom of the press and
face of natural hardships, to build
will be tired of
world
the
of
ket and that
#will be physically and materially
in his labors and in his successes
„
free and peace¬
nations
,
too much for the mar¬
prove
groups
virile nation, and these men and
women
of
the
armed
forces
hearts
more
The
a
world.
Whyte
(Continued from page 63)
remain
enter a new year j the sturdiest race that the world the corner stone of American
that in all probability will be the has known. The American's sturliberty and the hope of tomorrow.
most important year1 in the lives ( diness lies not only in his physical
6. We believe in the economic
of people now living. The events 1 vigor, but in his mental and spir
7
i
Thof ctronCfT 1
itual power as well. That Strength system that we have developed
"of 1944 may well determine the
in
this
country. Wealth comes
and vigor comes from hardships
kind of life people will live for
from human labor and from the
centuries to come. As we enter overcome, from problems solved.
utilization of natural resources.
These are the imperishable quali¬
1944, the forces of evil and de¬
Our resources have been exploit¬
ties of the soul of a man who
struction
have
been driven to
takes care of himself and builds ed at times. The power of money
the wall and the forces of right¬
has not always been intelligently
his way in the world.
eousness and freedom are on the
The American has never been used in this country. It is the duty
conquering march. The war ap¬
a
defeatist. He has been willing of government to regulate the ac¬
proaches a climax. In the judg¬
to
tackle
anything that comes cumulation of great power, be it
ment of most people, the major
in money, politics, groups* or or¬
issues of this war will be won along. That heritage still abides.
Government should
Let us have faith that it will drive ganizations.
in 1944/ But, when this war is
never forget that the paramount
us on to nobler achievement. The
won, there still will be momen¬
interest
is
the
public interest.
of
many
races
have
tous decisions to make and dif¬ people
is necesary in our
brought to our shore their con¬ Regulation
ficult problems to solve.
tributions of civilization and cul¬ system that public interests might
With ten million men and wo¬
ture.
They
have
strengthened be protected against selfish in¬
men
in the armed services and
America and America has strength¬ terests. But there is a vast dif¬
many more millions in war in¬
and
ened them. From the amalgama¬ ference between regulation
dustries returning to civilian pur¬
regula¬
tion of all that is best in our soci¬ regimentation — between
suits, problems of production and
tion and government ownership.
employment will be acute. With ety shall come the future counter¬
In other words, political owner¬
billions of dollars spent on war part of the American pioneer of
ship and management of business,
plants and industrial expansion, yesterday. ;/.
agriculture, of commerce, of
3. We have faith in our Ameri¬ of
reconversion and
utilization as
industry has no place in our free
can form of government. The real
well as the protection of private
economy and the public interest
business must have more atten¬ genius of our system of govern¬
Z/77
ment is founded upon faith in the does not require it.
tion in 1944. But government and
7. We believe that out of this
the industrial plant alone cannot dignity and worth of the individ¬
maintain employment of all those ual human being. It is founded war shall come a yearning every¬
Today
changed to up action.
Specifically this means that
the prices you were asked to
pay for certain stocks in the
now
Savs—
out of
and
will
Rights
opinion. The down action has
Tomorrow's Markets
threats on
every
Decide Individual's Place In
Thursday, January 6, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
B6
upon
request.
N.
Y. Cotton Exchange
NEW YORK
Bldg.
4, N. Y.
w."
"Re¬
firm
CHICAGO
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
m
i 50
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4244
-
assets
Calendar Of New Security
GAS
ELECTRIC
&
CORP.
Derby Gas & Electric Corp.,
6f
<
Ogden Corp.,
a subsidiary
91,577 shares
registered
of its common stock without par value with
the SEC.
This
stock
is
already issued
and
outstanding,
the
and
shares
50^,000 shares of
agreed
not
are
The
company.
They are to be sold by Ogden
Corp,/as part of its plan to dispose of its
public
utility
the
of
Act
S-l.
One
City, N. J.
;
Business
and
sale
The
in
Jersey
tured gas.
the
ment.
'' '•
"••'■
later.
>'■';/
1
(9-15-43).
Stock
of
award
y'.-
&
Dec.
on
Offered
1944,
:•
3,
Jan.
' V- V.
:
•,
by
TELEPHONE
Rochester
.
filed
Telephone
registration
Allen
■;
:
Inc.
of
;r/.;
I
COMPANY
'has
Corporation
statement/for
common
outstanding.
now
' ■•>'
V.
,v:. ••:
Main Street East, Rochest¬
Address—335
Y.
er, ■: N.
'' W-
Business—Is
;
telephone
operating company conducting a telephone
business wholly within the State of New
-York, serving without competition the City
jof Rochester arid the adjacent area.
V Underwriting—The underwriters and the
independent
an
underwritten
amount
First
^shares)
are
Boston
follows:
as
Corporation,
(In
78,000;
Securities
Union
by
Corp, and Smith, Barney
each; White, Weld & Co.,
George D.; B. Bonbright & Co.,
•Goldman,. Sachs & Co., Kidder, Peabody
.&
Co., Merrill Lynch, Pierce, Fenner &
Beane and Stone & Webster and Blodgett,
Inc., 25,000 each; F. S. Moseley & Co.,
•and Tucker, Anthony & Co.; 20,000 each;
•Sage, : Rutty & Co., Inc., 12,000, and Lee
bond3,
The
net
homa
proceeds,
from
the
A
registered,
of
the
to
Avenue,
.
named
be
together
share, pro rata;
shares of preferred
of common held of
the
of
rate
each
,
at
of
close
the
The
pire
seven
shares'
10O
at
record
a
business
Dec.
A-2.
will
ex¬
subscription- warrants
p.m. on. Jan. 10, 1944.
writers vwill purchase unsubscribed,
Under¬
shares
and offer them to public at price to be
named
by amendment.> Stockholders t- on
Dec. 22> 1943, are to vote on amendments
to authorize 200,000 shares of cumulative
preferred
stock,
$100
par,
issuable
in
series, and 100,000 shares of management
stock, $10 par value.
Also to authorize
.
of
shares
to
be
capital
stock of
the corporation
changed
into
shares of
common
$10 par value, and that authorized
thereof be. increased to 2,500,000
stock,
number
Shares—against
Of
2,000.000
par—and
unissued
for
present—authorized
issue
of capital stock,
$5
shares
shares
2,817
sale
to
and
officers
Proceeds—To
authorized
of
continue
common
used
be
be
to
but
reserved
for
general
S-l.
PUBLIC
Dec.
on
1943,
19,
approved
changes in the capital stock.
Registration
statement
effective
p.m., EWT, on Jan. 29, 1943. /:
5:30
Worth,
Burnett
Building, ^Fort
Texas.
Business—Public utility
corporation.
;
;
of
parent
registrant. '
Offering—There
underwriter,
registrant,
will
the
but
will
preferred
The
basis of
the'bonds
stock.
be
in
$100
The
for
the
the
of
for
of
same.
of
par
registrant's
registered
preferred
Purpose—The
The
however,
ments were
grouped according to the dates
which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
'/;•
v'V
These dates, unless otherwise specified, are as of 4:30
[P.M. Eastern War Time as per rule 930 (b)»
i
Offerings will rarely be made before the day folioware
on
,
'
in
securities
registrant
stock..: The basis
value
par
preferred
ferred
SATURDAY, JAN. 8
CENTRAL ILLINOIS
Central
•filed
.
of
share.
per
and
The
stock,
stock
outstanding
&c
and
is
Main
Rock-
the
//■';
beneficial
outstanding
V
.-
Electric
owner
all
of
Gas
&
of
the
stock of Central Illi-
common
Consolidated
is,, in
turn,
controlled
,j>by Central Public Utility Corp., a regis¬
tered holding company. The. stock regis¬
tered
J.in
is
befng disposed of by Consolidated
compliance
Section
the
with
11
(b) (1) of
Company Act.
'»Holding
proceeds
of the
sale
of
provisions
; the
Public
Utility
No
of
portion
of the
the
common
stock
registered will be received by Central Illiri
nois..
Consolidated Electric has petitioned
the
Commission
for
an
exemption from
•the
competitive bidding requirements of
;
the
-it
Commission's
sell .the
can
Rule
stock
U-50
in
that
order
at
Central
negotiated sale to
an investment firm
Republic Co.,
Chicago, which firm subsequently would
.make a public offering.
•
.
of
Proceeds—Consolidated plans to
the
use
proceeds to retire Federated Utilities, Inc.,
,5Vafc bonds, and to apply the balance to
-the
purchase in the open market of Con-
solidated's
S'
bonds.
own
'
'
(12-20-43.)
::
'
Registration Statement No, 2-5272.
S-2.
Form
7
::
'
■;
...
in
in
to
are
be
of¬
The
is
case
for
$100
balance
of
par
of
the
pre¬
PULP &
Virginia
a
Pulp
PAPER
has
registration
$300,000
filed
a
"
statement
for
'
5%
convertible
Feb.
debentures, series of 1943, due
1951, and 11,400 prior preferred
1,
shares,
for
:
...;
the
...
purposes
Angeles,
,
of
such
con¬
Traction,.Avenue,
Los
Business-—Engaged in
marketing
easing" and
business
at
of
proc-
wholesale
of
exacts,
prepared mustard
' Underwriting*--:Pacific Company of Cali¬
fornia,, and fVyeth
Co., both of Los
f"
■
.
Angeles,
are
stock,
named
underwriters,
each
: having
agreed:.' to purchase $150,000 of the
\ debentures at''92or a- total amount of
$277,500. j-#.
;
_
cumulative,
South
Address—600
Okla.
$100
par
per
Main
Tulsa,
Street,
&
Paper
has
Co.
statement for 155,830
cumulative preferred stock,
4% %-
value $100 per share.
Park
Avenue, New
V -y ...■£*
par
Address—230
City.'-.;.
'
Business—Engaged
purchasing,
ating,
also
and
principally in gener¬
selling electric energy
Business—Owns
facture
and
mills
=tock
which
Bonds
for
is
will, be
will
be
exchange
offered
petitive bidding and
supplied
by
for
names
of
operates six highly
in the manu¬
white papers,
kraft papers with
production of certain
chemical by-products and
and
products.
writers.
chemicals
other
re¬
Ripley & Co.,
York, heads the group of under¬
holders
$6
subsidiary
company
is offering
to
24,255 publicly held shares
without
par
value,
of
of
of
change, on
a
Light & Power Co., principal
Oklahoma, the right to ex¬
share for share basis, 15,000
of Southwestern
shares
such
number
of
homa.
Subscriptions
in
rata
5%
-
case
preferred
the
for
shares
be
to
holders
like
a
of
Okla¬
reduced
of
pro
than
more
15,000 shares of
exchange offer.
Southwestern accept the
Middle West Corp. has
agreed to purchase from Oklahoma at $100
per share and accrued dividends, 2,500 of
said
15,000 shares/ less such number, of
thereof in excess
shares
exchange
series
at
$100
dividends,
share
and
accrued
10,000
shares
of
said
15,000
5%. preferred, less such number
in excess of 5,000 shares
of
be subscribed
offer.
will
connection
result
filing
of
a
of
of
for
-No
be
with
price
fering
the
purchase from Okla¬
per
shares thereof
missions
to
underwriting
paid
the
pursuant
by
the
bonds
will
competitive
post-effective
be
com¬
company
exchange offer.
filed
bidding
by
the
in
Of¬
after
the
amendment,
Proceeds—Pursuant to authorization
in
December, 1943, by, the Securities & Ex¬
change Commission,' Oklahoma will, upon
•the- dissolution''of
holding
V;
shares
for
on
share
a
with
.
cash
a
4% %
of
for
share
dividend, ad¬
justment of 37.% cents, which adjustment,
together
the
with
dividend
receivable
on
the
cumulative
preferred
stock,
4%%
series, will give the stockholders who exer¬
,
cise
the
right to exchange a dividend for
quarter ending Feb. 15, 1944, the date
the
when
unexchanged
stock
rate
3
will
shares
of
preferred
be
redeemed,
at the annual
Exchange offer will expire
Jan. 14, 1944.
The company will
redemption on Feb. 15, 1944, any
of
6%,
p.m.,
for
the
shares
of
preferred
not
deposited
exchange at the callable price of 106.50,
including
equivalent
of
$1.50
dividend
per
share.
The
have agreed to purchase any
series
preferred,
not
quarterly
underwriters
of the 4%%
in exchange
issued
for
presently outstanding preferred, at a
purchase price of
$100
per
share plus
accrued dividends from Nov. 15, 1943; and
of
the
if
excess,
of
any,
initial
the
price per share (exclusive
dividends)' over $100 per share
offering made by the underwriters
accrued
of
any
such
but
shares
such
$104.50
prior
purchase
to
the
price
per, share
and
closing
shall
exceed
not
accrued
date,
dividends.
Underwriting agreement provides for
pensation
fering
the underwriters.
to
will
price
Purpose—To
demption
be
com¬
Public
named
by
of¬
amend¬
company
Southwestern,. principal
of
Oklahoma, acquire
effect
exchange
outstanding
of
and
re¬
preferred
stock.
Registration Statement No. 2-5276.
Form
S-l.
(12-21-43.)
rights
to
two
•
..
be
named,
will
the
shares
Offering—Price to the public to
plied by amendment.
-
STOP
JAN.
NUT
CORPORATION
OF
$3,500,000, 15-year sinking
fund debentures due Jan.
15, 1959, with
annexed
stock
purchase warrants..
The
ment.
rate
.
will
A
be
supplied
by
amend-
-V','.
Address—-Union, N. J.
Business—Engaged in ..the
:"•
.
manufacture
self-locking nuts of a wide
variety of types.
Underwriting — Principal
underwriters
are H. M. Byllesby & Co., Inc., and Ladenburg, Thalmann & Co., both of New York.
Others will be supplied by amendment.
and
sale
of
Offering—Price
by
to
the
as
be
be
from
sale
will
be
additional working capital.
to each debenture
amount
stock
holder
will
annexed
principal
able
public
amendment.
Proceeds—Proceeds
will
the
of
purchase
right
$1,000
a
There
in
the
non-detach¬
warrant
giving
the
to
purchase on or before
15, 1959, 35 shares of common stock
at prices
ranging from $14.50 per share
to $18 per share.
122,500 shares of com¬
mon stock, $1 par,
are reserved for issu¬
Jan.
ance
upon
conversion
of
the
warrants.
Registration Statement No. 2-5277.
S-l.
of
be
sup¬
of
making
sissippi.
The
the
tration.
record
Dec.
the
stock
The
total
Mis¬
Atlas
in¬
offered
by
with
which
company
from
completion
of
Atlas
prospectus,
contemplates
expire
pur¬
the
after
the
under
the
same
from
Atlas.
ing
of
Proceeds
will
the sell¬
to
go
stockholder.
.
Registration Statement No. 2-5278,
A-2.
Form
(12-23-43.1
and
It
AIRLINES, INC.
Northwest
Airlines,
Inc.,
is
sirable
statement
for
filed
139,460
common
stock, without
117,460 shares will
a
itself
shares
University
tunities.
the
acquisition
tion
with
routes
United
and
its
as
at
United
this
with
de¬
time
which
and
to
oppor¬
additional
hangars,
flying,
equipment, the
the purchase of
other
other
facilities
in
present routes and
connec¬
such
new
hereafter be acquired pr
participated in by the company.
It is
probable, although not certain, that addi¬
tional
flying and other equipment may
As
may
available
before
the
for
commercial
termination
additional
flying and
available,
the
becomes
a
sufficient
carrying
position
out
the
it
find
may
opera¬
the war.
of
other
equipment
its
program,
to
necessary
must
company
promptly
for
to
place
needs.
the
In
company
provide
addi¬
tional funds through the sale of additional
'•
St.
transportation
to persons, property and mail,
performance of contracts with
in-the
the
of
and
construction
of
invested
the
securities, bank borrowings, ths issuance
equipment trust certificates, or other
financing, although the company has no
present plans for any such other financ¬
ing.
"
: ;
of
Business—Engaged in air
and
will
funds will be used
communications
machinery
be
responsibilities
be-in
.....
be
Jan.
considered
funds
is expected
orders
Minn.
with respedt
It
is
company
to
Avenue,
It
with
future
its
meet
the
of
■
Address—1885
Paul 4,
to
on
group
they will
securities of
in
value,
the
company's
present
common
stock¬
holders and the balance to be issued under
options.
each
subscription
p.m.
underwriting
offered
par
be
3
of
common
for
price
a
The
expected
that
provide
tions
has
at
at
Government.
become
NORTHWEST
of
Proceeds—The entire net proceeds will
available for general corporate purposes
pending specific application of such funds,
for
purpose of resale
to
its officers and keymen at the
price that it purchases such shares
certain
The
temporarily
the
for
shortly
offering
1944.
States
the
regis¬
by Atlas also
(not exceeding 50,000)
shares
held,
amendment.
will
aggregate
share
one
rata
pro
be
com¬
of
held
includes the
chasing
by
shares
connection
shares
the
parent
IS,
of
J
company's
purchase the unsubscribed shares and offer
them to the public at a price to be named
by amendment.
constituting
of
owned
227,000
the
277,612
power
Atlas
in
as
company,
voting
pany,
cludes
of
the
the
States
in
connection
with
Registration Statement No. 2-5279.
the
A-2.
prosecution of the war.
Underwriting— Auchincloss,
Parker
7
Form
^
(12-23-43.)
(This list is incomplete this week)
&
The Securities Salesman's Comer
A
Campaign For New Accounts
to wonder why anyone should buy. securi¬
ties from you rather than from the other fellow? What inducements
do you hold out to your potential customers that lift you and your
ever stop
you
organization out of the average
less
the
in
same
When
render?
of securities firms, all more or
they offer, and the services they
stop to consider these things isn't it true that
Form
(12-22-43.)
securities
soliciting business in the
and
same
investment firms alike, go about
cut and dried way, day in, and day
out?
V
"Well,"
say,"what if we do—we are obtaining our
paying the rent, and getting along alright
(and) without a bag full of fancy tricks that may or may not work,
but will surely cost us money". If such is the case it's all to the good
but there is one thing no firm can afford to do if it intends to go
share
you might
the business,
of
ahead and that is GET IN A RUT. The best thing about a new and
progressive sales program is not only that it can pay you dividends
in dollars and cents but (also) in increased enthusiasm and interest
in your work. If you' are trying to expand your clientele by ex¬
tending your facilities and widening the scope of your activities you
not stagnating nor standing still.
Select a hundred, or as many names of investors
growing—you
are
Here is
are
plan:
a
your sales organization can intensively cultivate and still do a
thorough job. After you have carefully picked your prospective
clients $nd have made sure that they are substantial investors,
as
begin
a
mail campaign.
In this
mail campaign lift your firm out of the crowd by send¬
ing these people the sort of interesting articles that appear weekly
in the Commercial & Financial Chronicle.
Send them reprints of
such articles as those written by Dr. Benjamin M. Anderson en¬
titled POST-WAR FOREIGN
STABILIZATION
EXCHANGE
FUR- :
THER
CONSIDERED, which recently covered this vital subject in
a
manner
not readily obtainable from other sources—if at all.
Every week (other) exceptional articles by world-famed authorities
are appearing in theV Chronicle.
The reprint of the address by Dr.
Wriston of Brown,
University, entitled FREE ENTERPRISE, in our
opinion, is another outstanding expression of current opinion that
your prospective investor clients should gratefully receive.
Other
in
articles
thev
the
mailing
pieces
one
be
can
permission
request
BECAUSE
VERY
the
as
are
authorities
bv
REFLECT
such
ticles
vein
same
written
are
information
of
their
THEY
fields
CARRY
FAVORABLY UPON
by
Dr.
Anderson
photo-offset
and
full
in
we
feel
at
a
are
and
since
will make
PRESTIGE AND
they
THE
SENDER.
available
in
Ar¬
reprint
of expense—just
"Chronicle" will be
minimum
certain
the
pleased to cooperate.
When
list include ; a
stationery is of
good quality and your letters are individually typed and signed.
Send out a series of these letters and reprints. Keep it up for
a while.
Ask for comments upon the enclosed. material. Try and
get some of the recipients to open up a little correspondence with
SHORT
you.
you
send
COVERING
these
reprints to
LETTER.
Make
your
mailing
certain
your
You will be surprised how many will do so if you make your
letters
friendly and don't try to push any securities upon anyone to
whom
you
are sending these letters.
Let them see you are a real
investment firm, with your eyes wide open as to what's going on in
the world
of politics, economics, and finance. Let these people get
acquainted with you first BEFORE YOU TRY AND DO BUSINESS
WITH THEM.
After you
NAMES
have kept this up for a few months DIVIDE THESE
AMONG THE MEMBERS OF YOUR SALES ORGANIZA¬
TION AND THEN LET THEM MAKE THEIR CALLS AND
WORK.
IF YOU
AMONG
OVER
A
YOUR
GO TO
LIKE, YOU CAN THEN CONDUCT A CONTEST
MEN
CERTAIN
BASED
UPON
THE
BEST
PRODUCTION
PERIOD, OR THE GREATEST NUMBER OF
NEW ACCOUNTS SECURED.
This sort of
TUESDAY, JAN, 11
MISSISSIPPI VALLEY BARGE LINE CO.
of
run
facilities
the
you
salesmen
most
form—others
Stop Nut Corporation of America
registered
interest
owned
of
WILL
10
AMERICA
Elastic
has
1943,
stock
39.66%
Corporation
an
shares
ratio
then
by
the
given
to
additional
in
of
be
subscribe
117|,460
stock,
warrants
ideal
MONDAY,
used
Co. has agreed to
may
shares
together
ice
as
such
registered,
basis,
supplied
shares
by amend¬
cumulative
of 2,500 shares as
subscribed for pursuant to
the
exchange offer, and American Public Serv¬
be
homa,
be named
>.7
ELASTIC
preferred,
Southwestern
of
will
Offering—Company will offer to holders
its outstanding 155,830
shares of 6%
preferred stock, the right to
of
Offering—.The
the
of
Others
of underwriters
amendment.
by water
Monongahela,
underwriters.
.
ment. .V.v
purposes.
at
com¬
sale
stock
named
of
Did
engaged
collateral
natural gas
and selling water.
Underwriting—None involved in issue of
Ohio,
to
of' freight
transportation
York
ment.'..
.
exchange
Cal.
coffee,, tea,
and spices. ■
preferred
of
'
;
Address—800-812
a
share/and $6,600,000 first mortgage bonds,
Series A, 314%, due Feb. 1, 1971.
carrier
common
January,
v
CO.
registration
shares of
i
pklahoma has filed
registration statement'for $1,500,000 5%
St.
Form
public offering
of
street,
the group
ohe $100
the
of
VIRGINIA
West
filed
of
PUBLIC SERVICE CO. OF OKLAHOMA
a
the
Mississippi,
registration
in
each
bonds
stock.
stock
WEST
90%
may
BEN-HUR PRODUCTS, INC.
Ben-Hur
Products,
Inc.,
version.
filed in San Francisco.
Public Service Co.
utility.
applied by amend¬
Offering—Consolidated
;nois.
Street,
public
be
■'
.
is
issued
represent
Qlive
head
the
underwriting
group.
Others will be named by amendment.
Offering—Holders of record at a date In
Allegheny and Kanawah Rivers.
f
Underwriting—G. H. Walker & Co. heads
which
Registration Statement No. 2-5274.1
S-l.
(12-21-43.) '
■
on
Business—Operating
.Co.
$15
Registration Statement No. 2-5273.
Form
S-l.
(12-20-43.).'
' Statement
originally
7
.Underwriting—To
>
not
./'v/'-.' '.
SUNDAY, JAN. 9
| ford, 111.
ment.
value
already
does
working capital
purposes.
,
•V- Address—303 .North
;
for" 400,000
par
and other
has
Gas .Co.
statement
.
common
'"new financing.
Proceeds—For additional
ELECTRIC & GAS CO.
Electric
registration
a
•shares
i
Illinois
in
the
on
of
it
:/
registrant outstanding
in the amount of $5,875 will be called in
by the registrant and retired.
for
,.;
Business—Is
engaged
which
/
exchange for
outstanding preferred stock and by the
underwriter (Keystone Pipe & Supply Co.)
In exchange for Its outstanding
preferred
of
100.
Address—1017
Mo.
exchange
stock
•
its
call
Offering—Price to pubic,
Redpath
Louis,
outstanding and do not
financing by the company.
of
preferred stock of
has agreed to. accept
->
the
registered.
owner,
the
the ' bonds
by
holders
exchange
securities
is
owns.
fered
to
par
registrant-and
par
by
value of preferred
underwriter Is not bound to
24,096: shares
at
principal
received,
Supply Co., parent of
offered
stock
underwriter
the
bonds
*
.
.
exchange is to be $100
for
all
VI .v
be
no
Underwriting—Harriman
list of issues whose registration statefiled less than twenty days ago.
These issues
are
repre¬
and
new
prospectus
Underwriting—Keystone Pipe & Supply
Co., Butler,
Pa.,
is named underwriter,
lated
a
sent
15,
TEXAS
Corp. of Texas has filed
statement for $800,000 5%
25-year first mortgage bonds.-,
Inc.. New
Following is
shares
corrimon
issued
of
OF
Service
integrated
Stockholders
the
the
The
.
SERVICE CORP.
registration
a
cor¬
(12-9-43).
funds
to
(12-21-43.)
Series,
employes,
porate purposes.
;■
Registration Statement No. 2r5269. Form
general
applied
87
share.
per
Proceeds—Atlas
29,
3
with
to be
are
1, 1969.
by Okla¬
received
the bonds of Series
$1
..
take
105,032
subscription at $100
for
amendment.
by
of
Dec.
redemption, at 105%; of such bonds of
subsidiary.
Registration Statement No. 2-5275.
Form
its
transport system, v Ripley & Co.,
namedi- principal
underwriter.
;,
be
sale
company,
due
value
par
to
3%%,
the Keystone Pipe &
■
.--is
for
40,000
Co.,1
'30,000;
Corp.
; Cicero
South
.
Offering—The
at
Co,,
&
•
>
380,000
stock,. $10 par. value.
«The offering does not represent
new financing by the company as the shares are
a
shares,
,
1943,]
19,
Underwriting—Harriman
1943.
ROCHESTER
1954.
Transport
Lines
Dec.
shares of 4l/a%
preferred are being offered by the corpo¬
ration to.the holders of its common stock,
share.
per
$100 par value
[Name changed
Others Will
i
18,-1943.
Jan.--6,
.'York,' at $18
Air
a
shares
Bid price was.
immediately disclosed, i a
Registration statement - effective 3 - p.m.,
New
filed
Inc.,
Co., New York,
91,577
1944, from the Ogden Corp,
EWT.
*
Chicago.
'
not
i»,
\
Business—Air
■
Awarded.—Allen
the
won
:•
Lines,
Address—5959
.
;
v
United
from
stockholders
Registration Statement No. 2-5213. Form
8-1.
Air
INC.
cumulative preferred stock,
Offering—Terms'will be filed by amend¬
ment
LINES,
—convertible prior to
,K'-\
1
share
per
registra¬
tion statement for 105,032 shares of 4%%
opening will be filed by amend¬
later,
AIR
United
•.
bid
of the
Series A,
amount
Public
at $15%
1944,
4,
properties of
$6,648,000 face
subsidiary's first mortgage
subject
Address—Burk
v Underwriting—Ogden
Corp.,
after
the
•registration becomes effective, will publicly
Invite sealed proposals for the purchase or
underwriting of these shares..
The result
of
Jan.
UNITED
the lia¬
Southwestern at date of acquisi¬
the< subsidiary,
(10-27-43).
distribution
and manufac-
energy
stock
the
by The First Boston Corp, and associates.
engaged
is
generation,
of
sale
the prospectus are to be re¬
the sellers, and not by Rochester
by
Offered
\
company
the
electric
of
Place,
V"
—
primarily
Exchange
the
of
380,000
of
underwriters.
the
Telephone Co.
Registration Statement No. 2-5239, Form
Public
—
aggregate
to
have
stock
common
new
an
stock
proceeds
offered
investments in accordance
Utility Holding Company
sell
-
such
ceived by
1935.
Address
to
of
shares
being offered by or for the account of the
with;
bilities of
subject to
tion. Oklahoma will acquire the
Higglnson Corporation and Little & Hop¬
kins,, Inc., 7,500 each.
Offering—Offering price will be supplied
by amendment.
'Proceeds—Certain of the holders of the
OFFERINGS
DERBY
of ^Southwestern
"
Mississippi Valley Barge Line Co. has
registered 227,000 shares of common, stock*
zation
on
^
campaign is guaranteed to keep any sales organi¬
its toes and if you plan it well, select good names and
a
circularize, write short, impressive covering letters,
be assured.
success
should
Thursday, January 6, 1944
COMMERCIAL & FINANCIAL CHRONICLE
THE
88
Mfallory & Co.
P. R.
Teletype—N. Y. 1-971
IIAnovcr 2-0050
Firm Trading
Of Our Business Friends
To All
Markets
Thank you
'
FOREIGN SECURITIES
'
all issues
"7V'<
777""'
/
*
•
7:77.'<
7
"
'7
•
■
of
one
your
7
•' 7
'
hope
even
^7-;v77
4% Cum. Conv. Pfd.
.
7
'
Rochester Telephone
Common
'
.
•
Central Veriront Pub. Serv.
business relation¬
our
Merrimack Mfg. Co.
having met the
another
M. S. WlEN & Co.
specialists
New York 4, N. Y.
50 Broad Street
—flFFll iflTE:
SEC And NASD
And Usage
7
7.7
7:
OVER
" * 7
existent.
"/■
-
york
new
777 5%.
1-576
26, page 31.;'
See 'New York Times,' Oct.
tion all relevant
of the New York Stock Exchange or other
Exchange or market where executed and/or subject to
the recognized customs and practices of brokers and
dealers in securities.'
The quoted rule of the NASD
and usages
7 7
ers
.
extent
an
Eastman, Dillon Admit
Barton And Power
announce
with them in
their corpo¬
depart¬
The "5 % spread rule" should be and must be
at
Street, New York City, members
institutional trading
New York Stock Exchange,
Bar¬
partnership in
Both the Securities and
Mr.
Barton
and
subject of "custom and usage," and to stop using
improper labels.
The
this
in
of
;v.
discussion.
on
or
The
any
names
omitted
ously reported in the "Financial
30th.
December
N.
Security Dealers Ass'n
Y.
30 Pine
Street, New York 5
Cbas* E,
where
Weigold Co.
Formed In New York
&
Roosevelt
the
nounces
Col.
Weigold, Inc., an*
resignation
Archibald
of
Lt>
Roosevelt
B,
as
President,-and the change in name
to
Chas.
E.
The company
in
Weigold & Co., Inc.
will continue to deal
and
State
Municipal,
Bonds,
specializing in Bonds of munici¬
palities in New York State. Chas.
E. Weigold is the new President,
and Edwin J.'Cross is Vice-Presi¬
The address
dent and Secretary.
remains
unchanged,
Street, New York. 7-''
407 Wall
■
7.;77.,;777.
Mackubin Legg Admit
Morgan And Pohlhaus
BALTIMORE, MD.,—Mackubin,
Legg & Company, 22 Light Street,
members
7
of
the
York
New
and
Stock
Baltimore
Exchanges, an¬
nounce
that C. Gerard Morgan/
Jr. and Walter C. Pohlhaus,., who
have
been
associated with the
many
years,
have been
general partnership
as
of January 1, 1944.
Admission of Mr. Morgan and
Mr! Pohlhaus was previously re¬
admitted
to
ported in the Financial Chronicle
of December
23.
~
Allen & Co. Offer
related phases of the subject under
of those submitting comments will be
Editor, Commercial and
New York 8, New York.
of
77 7;
CHRONICLE invites comments- on the views expressed
article,
Mr, Power to the firm was previ¬
Chronicle"
Exchange Commission and the
would do well to
National Association of Securities Dealers
their firm..
Admission
ment.
abolished
once.
review the
ton and John F. Power have been
admitted to general
that tide is stemmed, the better for our country.
sooner
Eastman, Dillon & Co., 15 Broad
formerly of
Clark, Dodge & Co., is now asso¬
ciated
Quoted
L D. SHERMAN & CO.
Members
firm for
Blair & Co.,- Inc., 44 Wall Street,
New
York City, announce that
rate
give rise to immediate and grave concern.
to
as
The
77
that D. Frederick
—
circumstances," the cost of doing business
not be disregarded. Yet the Securities and Exchange
Commission and the National Association of Securities Deal¬
may
have wilfully disregarded this vital element.
Their
"philosophy" deals not with "profits" but with "spreads."
clearly sets forth one of the recognized practices of deal¬
The process of encroachment upon the rights, powers
ers in securities.
*
7 7"
and duties of business and enterprise by the alphabetical
"A recent study of the .mark-ups over the current
agencies; of the Federal government has advanced to such
of the
Sold
-—
Tel. WHitehall 4-7970 Tele. NY 1-2218
the Commission in effect, urged
upon the United States Circuit Court of Appeals that in over
the-counter transactions, it was the well recognized custom
and practice among brokers and dealers in securities not to
take a mark-up in excess of 5%.
We doubt whether any broker or dealer would dare to
say under oath that such is the general custom.
The fallacy of the SEC eontention is inherent in its very
argument.
If such a custom prevailed, there would have
been no need for a survey by the NASD to establish it, the
taking of the survey, as well as the "5% spread philosophy"
since developed by the NASD, in and of themselves negative
the existence of any custom among dealers and brokers on
the subject of ceiling profits or spreads. .77'77''-7.;:fv777-J7/./7:'
The above quoted rule of the NASD certainly does not
warrant a 5% spread, for, if we are to "take into considera¬
by petitioner contain a specific statement on their face
that 'all transactions shall be subject to the regulations
Now With Blair Co,
Bought
1952
By these arguments,
'unlisted' securities, if a
H.F.Schroederls
77:
Limestone
Teletype
Bell
telephone
Enterprise 6015
2-3600
Indiana
5
actually taken by members of the National As¬
sociation of Securities Dealers shows that 47% of the
transactions were effected at a gross mark-up over the
current market of not over 3%, and 71% at not over
''7
7
777v'77777
Hughes case, the SE.C cited Article
Herbert F. Schroeder,
1-1391
Y.
market
member buys for his own
account from his customer, or sells for his own account
to his customer, he shall buy or sell at a price which is
fair, taking into consideration all relevant circum;7 7 stances, including market conditions with respect to
such security at the time of the transaction, the expense
involved, and the fact that he is entitled to a profit. . .
The Commission then added the following footnote ob¬
servations:
v7. ,>■ .77.
77;'
"It should be noted that the confirmation forms used
7
HAnover 2-8780
N.
7f776s»
7:
'
philadelphia
telephone
7
.
YORK
NEW
STREET,
NASSAU
REotor
3, paragraph 4 of the NASD rules as follows:
;;777%:
"In 'over-the-counter' transactions, whether in 'listed'
or
"'77:':'
77 ' '
''
4 5
"recognized customs and practices of
securities,".which in effect are non¬
In the now notorious
25 Broad St., N.Y.
Kobbe, Gearhart & Company
legislative authority passes a statute establishing a principle,
that is the law which overrides any contravening custom.
In the absence of such a statute, the custom or unwritten
law would have prevailed.
It is our theme that the recent hand and glove activities
of the Securities and Exchange Commission and the National
Association of Securities Dealers is resulting in a designed
in
Members N. Y. Security Dealers Ass'n
COUNTER SECURITIES
7.
7
77 INCORPORATED
777. 7'7 7
77,:
Members 'New York Security Dealers Association
.
Fiat
In Securities Business By
attempt to give rise to
-
Teletype
Attempting To Establish Custom
brokers and dealers
THE
Inc. CHICAG0=^-
CARL MARKS & CO.
(Continued from first page) 7777V
"'
-
& Pfd.
Common
year.
Actual markets in a wide range of
7V
Common
»
closer cooperation and
due to its
confidence,
.
favors to date.
additional test of the vicissitudes of
CO- INC-
-77' foreign securities
•
.
will he
ship
greater
P.ARL MARKS &
i
At the end of 1914, we
777'
"■
•
'
■.
sincerely for
.
Derby Gas Issue
requested.
; Comments
should be addressed to
Financial Chronicle, 25 Spruce Street,
.7 77777 777 ;7777 '
Offering
common
of
91,577
stock. of
shares
Derby
Gas
of
&
Electric
Corporation
is
being
made today by Allen & Co., New
York.
The stock is priced to the
American
public at $18 per share.
NOTICE!
Cyanamid
The
To
;
—"—
/
A
New
Booklet
— 7 7"-7:7 f
Philadelphia
of
on
THE
Bought—Sold—Quoted
:
We
BROKER-DEALER
maintains
have-aprepared
or
a
and
of disclosure of
analysis of recent cases.
115
Send your
Broadway
NEW
YORK 6
1
Telephone BArclay 7-0700
Bell
System
Teletype NY 1-1493
$1
00
orders in NOW
Morris Cohon
42 Broadway
Telephone
WHitehall
4-0869
New York 4
Teletype
NY
1-2187
D.
C.,
Easton,
from Allen & Co. upon request.
Pa.
SEE
Our Advertisement
INDEX
Page
Insurance
and
of
New
87
85
Trusts.
83
Investment
81
Municipal News and Notes
Our Reporter on Governments
......
78
Our Reporter's Report
66
Public
64
Utility Securities
Railroad
61
Securities
66
Real Estate Securities
■
Security Salesman's
Tomorrow's
Says
..
Page 60
66
Stocks
Security Flotations
Securities
Canadian
Bristol & Willett
I
an
also
offices
.in
principal
study of the problem
profits containing an
Interesting Situation
Allen
Allentown, Pa.
Calendar
.
&
Philadelphia,
Washington,
Bank
Members New York Security Dealers Assn.
Bell
the opening of
Street
nut
CUSTOMER PROBLEM
markets
1920
H.
whose main office is at 1500 Wal¬
5% Preference
Established
W.
announces
.
investment
Co., Inc.,
& Co., 30 Broad Street,
of¬ New York City, have prepared an
fice in Boston, Mass. at 49 Fed¬ analysis
of Magazine Repeating
eral Street, under the manage¬ Razor Company.
Copies of this
ment of John Cannell. The firm, interesting analysis may be had
firm
Brokers and Dealers Only
7.7 .7 77 7 7—
Co.
Branch Under Cannell
7
v
Markets and Situations for
120
Dealers
Broadway, New York 5
87
Corner
Markets—Walter
—
Kill, Thompson & Co., Inc.
Tel. REctor 2-2020
Whyte
63
Tele. NY 1-2660
@FedFRASER