Full text of Commercial and Financial Chronicle : January 9, 1947, Vol. 165, No. 4558, Section 1

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flto i v,ite A^iii;rfc?4it

^^yiij^iiy^ ^^?.i

A.DM»RAi«

in 2 Sections

ESTABLISHED 1839

Final Edition

Section 1

Reg. U. S. Pat. Office

York, N. Y., Thursday, January 9,

New

Number 455£^

Volume 165

•<

Copy

Price 30 Cents a

1947

} -*3

By EMERSON P.
s

SCHMIDT*

Director, Economic Research

;lC

Chamber of Commerce of the

Significance and Legal Status

Department

United States

Sit-

conditions of 1946 will continue through
this year, Dr. Schmidt cautions against over-optimism on ground
mass economic behavior cannot be predicted.
Contends success of
wartime price control is deceptive and decries adverse encomiums
heaped upon business since V-J Day. Concludes 1947 should see ;j
less government controls, less bungling, fewer strikes and more
goods of superior quality, but without the country going "reac¬
tionary. Sees businessmen having heavy tasks ahead, with piece¬
meal adjustments and shortage of industrial capital in offing.

Asserting it appears boom
/

•

;

About two weeks after
<>'n

Christmas and
the winter

in
of

stated

the Senate Fi¬

d i n g."
(Hearings
S.
1274, p. 521.)

p e n

pears

and

through 1947.

y-%

Yet /^prediction

each De¬

*orcv!" vt

cember underestimated

national income for

ber 1945

the

1946

29%—a

wholesale

off

forecast

Its

useless.

than

worse
forecasts of

continued

and

on:, page

164)

by Dr. Schmidt be¬

Chicago, 111., Jan. 8, 1947.

King

;

the

'A"

Prospectus on request

STATE

and other Exchanges

Common Stock"

•: ; r

25 Broad St.,

New York 4, N. Y.

HAnover 2-0600

;' .Teletype NY 1-810

Chicago
-

Cleveland • ;

Geneva.

•

London

Head
'
*

members
from

all

except

organization

labor market—"was a

basic feature of the

medieval

guilds; I'was I found in
colonial
America; ? and has
craft

;

• •

Bulletin"

(March-April, 1946).
Depart¬
ment
of
Labor, the f term
"closed shop" is applied to ar¬
rangements under which the
employer can hire only mem¬
bers of the union, who must
remain:

Woonsocket

; >

good

members

(Continued on page 146)

^|Municipar:iiv:
Bonds

" ''

i''

•

:
w'

••

'X1

f'/ '•

)\i :•$:

zh
*
•

['iiu i*"

1 v

■'

•'

5 "

Bond Department

SMITH & GO.

THE NATIONAL CITY BANK HART

•

M||0F NEW.YORK ;§i'
'

Bond Dept. Teletype: NY 1-708

*Air Products,

CORPORATE

*Emery Air

FINANCE

Members

•

WILLIAM ST.,

N. Y.

HAaovor MM

:;y;: vv Ball Teletype NY 1-268
New York

Kontreal

THE CHASE

•

New York Security Dealers Assn.

NATIONAL BANK
%

OF THE CITY OF NEW

YORK

Toronto

conducts every description
banking and exchange business

Trusteeships and Executorship*
■: also
undertaken

Freight

Corp.

Bond Brokerage

•,Z"

^Universal Winding Co. Com.
*Prospectas

Gearhart & Company
INCORPORATED

Members N.

Security Dealers Ass'n

New York 5

45 Nassau Street
Pel

REctor

Philadelphia

3-3600

Enterprise 6018

Members

New

York

Stock

Exchange

Broadway, New York S,

120

Telephone:
r

■

•

Brokers

Analysis

upon

''•,

request

and Dealers

request

Reynolds & Co.

Teletype N. Y.1-876

Telephone:

V for Banks,

Utilities
v:,t£;;Vr.A

$2.40 Conv. Preferred

^'f-^iMARKETS Z0:'ZZ

ifisr Northwest

Service

Raytheon Manufacturing Co.

Ceylon, Kenya
Zanzibar

Bank

Inc. Com. & "A"

Common & Preferred

...

26, Bishopsgate,
London, E» C.

principle of the closed shop
—exclusion

MUNICIPAL

t".•*' '*< ' «■»"" •'

New York 5

SECONDARY

Office:

i-:.\

of the United States

.V •*.-)>■ \

Springfield

New Haven

Subscribed Capital
£4,000,000
Paid-Up Capital
___£2,000,000
Reserve Fund
£2,200,000
The

consid¬

the Government in

Branches In India, Burma,
Colony and Aden and

problem of monopoly in
economic
system. The

BONDS
•°V >t £,\Z'f\ kS,

INVESTMENT SECURITIES

WiUiamsport

■

(Representative)

Kenya Colony and Uganda

AND

: I
PHILADELPHIA
Troy
Albany -.Buffalo .> Syracuse
Baltimore
Dallas " V
Harrisburg
Pittsburgh
Scranton. - Wilkes-Barre

of INDIA, LIMITED
to

old
the'

BOSTON

NATIONAL BANK
Bankers

Established 1927

64 Wall Street,

;•

Members New York Stock Exchange
v

■

•

R. H. Johnson & Co.
Hirsch & Co.

should
-

•••

power merits careful
eration.
Z\'zZZ :':.

relations

Near York, Iiuf.
:

recent

Liberty Fabrics of
ii i

-N

the

of the Constitution.

personal ones of the writer.

*Opinions expressed are the

Havana Litho. Co.*

• •

great in¬
crease in the number, member¬

housing difficulties besetting
thereto, were inevitable be- been favored by many labor
(Continued on. page 144) ^
.
organizations , since adoption

.v ;

•

ployment of the closed shop
as
an
additional source of

fun-

changes in la¬

Administration*

A passive attitude, that the current
nation, and the misery attendant

Vacuum Concrete

Aerdvox Corp.*

in connection
with any

■.•••••
With

■

ship, and power of American
unions, however, their em¬

consideration

Harold

fore the Chicago Economic Club,

KING

Institute of Business

used.
It is true that the housing problem
may "solve itself" in time/ either because of, or
in spite of, the current emergency housing pro¬
grams
of the government.
Prompt solution,
however, would seem dependent upon an ac?
curate diagnosis of the trouble.

one-

♦An address

receive much

damental

ing

retail prices were

and

one-seventh

—

Jihe postvvax. economic problems remain¬
ing,-the most urgent, in the thinking of many
Americans, the housing dilemma, appears far
from solution, although hostilities ceased a year
and a half ago.
The persistence of the "disease"
casts doubt upon the validity of the remedies be¬

hazardous;

discernible at the moment for 1947.
v
of leading union practices which

closed-shop agreement is high on the list
an d,
n o
doubt, will

pi the leading bank letters

\p.

The

facilities to

expand

1
•£.

refutes theory housing shortage arises from failure of living
policy. ; ;
Closed Shop and Union Shop
keep up with population. Ascribes shortage to increased
The closedBefore noting the preva¬
demand for more ample living quarters because of
shop problem,
lence of the closed-shop prin¬
higher incomes, and contends rent controls not only
of "course, is
ciple in present-day employ¬
intensify this demand, but also .impede new con¬
not a recent
T. J. Anderson, Jr.
ment practice it is well to dis¬
struction. Says landlords, because of their political
or
evan
a
tinguish the-closed shop from
weakness, are exploited and must accept less than
modern jprie in its economic the
union shop. ! As employed
market value for use of their properties.
V.
fundamentals; it is the age- in the "Labor Information
Of

Dr. King

will

continue

Schmidt

those problems which are

among

bor

it
ap¬
that the

boom
Dr. E. P.

Staff Member, Babson

great boom is

By HAROLD J.

Com¬

mittee

Now

of closed-shop
of labor, wage
differentials, wage-rate inflexibilities, employment, labor productivity, industry concentration, and gen¬
eral economic well-being.
*
' pf
\ , VV
:
The problem of revising American public policy on labor relations is outstanding

Housing Problem
—Its Cause and Cure

cau¬

and
lai$sez~faire or

problem of economic monopoly,

public consideration. Holds either

proclosed shop policies are inimical to general welfare. Advocates complete prohibition
of treatment as regulated monopoly. Estimates effects on mobility

The

tiously before
nance

closed shop—representing age-old

of union power—demands foremost

source

agreements, in lieu

1943-46,

Associate Professor of

Professor Anderson maintains

vocal govern¬
predicting collapse and mass

unemploy-<$
m
e
n t
by

■/-v ;
Economics, New York University

By THOMAS J. ANDERSON, JR.

5;*
\

f1 '

additional

V-J Day, when the most

in .Washington were

ment spokesmen

Shop—Its Economic

The Closed

The Economic Outlook for 1947

N.\Y.

REctor 2-8600

Ben Teletype: NY 1-635

Hardy& Co.
York Stock Exchange
Members New York Curb Exchange

Members New

(0 Broad St.
Tel

DIffbv 4-7AOO

New York 4
Tel.

vv... .-r»

IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal Exchanges

Hi Broadway,
REctor

2-3100

N. Y. 6

Teletype NY 1-2700

THE COMMERCIAL & FINANCIAL
CHRONICLE
ZZ:

Trading Markets in:

The Urgent Crisis of French Franc

Standard G & E Com.

National Skyways

•

By egon kaskeline,. v/';-

Old

Reorg. Rails

Commons

Preferreds

Taca Airways*
Prunpecitu

the

KING & KING
SECURITIES CORP.

Exchange PI., N. Y. 5
BELL

£LE!YiJ£.

run.

1-4*4

fimated

Howe

Scale,

May, McEwen & Kaiser
M.

Bank

Rhodes

Steinway & Sons

MilcltelUCompuj

terms

Bell

Teletype

ing,

1-1227

•"

Egon

indicated

Kaskeline

ment

Rogers Peet

Common

also

"the

Franc

3/6a,

1956

Fr anc

Vanderhoef & Robinson
Members New

time

81 Nassau Street, New York

devaluation

the

Bell System Teletype NY 1-1548

Stock

Common

! v ;

currencies

Franc.

and

today hiay

be uSed to defend

can
-

After

the

Common

Preferred

'0#^
V

recent

20 Pine Street, New York 5

WHitehall 3-1223

'V'l

•?

::y:

Members

New York Stock

•

New
120

•'

Detroit,
made ,the_.

serious

■

Both

Members

Bell

Teletypes—NY

1-1126

Complete ,;S-

a c

discus¬
sed the prob¬
lem, and it has

A. M. Sakolski

(7. S, FUNDS for

for ;■
Banks and Dealers

anybody

Monroe Auto
'-

Common

—

-i

■

120 Broadway, N. Y. 5, N. Y.
REctor 2-7630

Teletype NY 1-2361

The

come.

Solar Aircraft

„

:T; ■/;• /'

production

^Twin Coach

record

Ford

Motor

*Prospectus

Company

request

■

■■■-.' -ii

Request

is':

'v. ■.*''

..'T/: ;■

York Security

Dealers Association

Members New York Stock
Exchange

12Q

Broadway,

New

Telephone:

York

REctor 2-8800

Bell Teletype: NY 1-635

Y.
//

;

Haytian Corp.

Common

Punta

•<

■

Savannah Sugar

/.:,v

/'J

|||

Teletype 1-376-377-378

Buffalo—Cleveland—-Detroit—Pittsburgh—St. Louis

BOUGHT—SOLD—QUOTED
"

"■«

J-G-White & Company
INCORPORATED

FARR &
Members
New

37 WALL STREET

NEW YORK 5

ESTABLISHED 1890

Tel. HAnover 2-9300

Alegre Sugar

Quotations Upon Request

74 Trinity Place, New York 6, N. Y.

Telephone HAnover 2-2400

\..x-

' '

■

Tele. NY 1-1815

Reynolds A Co.

Com¬

%4::

Company

Conv. Preferred

year

■ '■
~

•

90c Conv. Preferred

PUBLIC SERVICE

Equipment
Warrants

4•'•. "

Prospectus

Member New

Private Wires to

Conv. Preferred

NORTHERN INDIANA

Troster, Currie & Summers

Members New York Security Dealers Assn.

Earnestly

^Detroit .Harvester Co. Com.

pany are certainly riot today ih
any position to 'guarantee an an¬
nual wage.'
But progress toward
(Continued on page 156)

\<J

C. E. de Willers & Co.

fpt Jth* Building Fund

Acme Aluminum Alloys, Inc.

of peace has
turned the spotlight; on some of
the great difficulties to be over¬

Teletype NY 1-672

Contribution

fair

"This normhl human desire on
part \ of our employees for
greater stability in their j obs is a
challenge to mass production man¬

"'-T

]

really - believes that

guarantee security in
What he really" wants

steady employment at

-yy,-''iy"^
,'f...

Memorial

For Banks, Brokers & Dealers

r'y

-■

JOSEPH McMANUS & CO.

can

this 'world.

during the first

Goodbody &. Co.
-

■■
iwVw /

Financial District

Solicited

the

CANADIAN MINES

■

Wat

Your

little too close to being

rate of pay.

Members N. Y. Stock Exchange and Other Principal
Exchanges
115 BROADWAY
NEW YORK 6, N. Y.
>

Brokerage Service

(*5ii r -eWW.^# >' *4
J & t4\f~
"

HAnover -2-8470

Victory Church

political phony; It suggests that
someone /is in a position to guar
antee
an
anual
wage
and is
merely refusing to do so. I doubt
very much whether the American

." 'f' ^ ^ V
Sj?

NEW YORK 5

It. is misleading.

It comes

lately

-r

York Curb Bxchano*

X-^.Twl

choice of words.

agement.

Established 1923

'•

turers have

Telephone BArclay 7-0100

Annual Wage." Ip ;a great many
ways this seems to me a poor

Association of

CANADIAN UTILITIES

1127

Members New
64 WAIX ST.

the

Hanover 2-4850

Frank C. Masterson & Co.

CANADIAN BANKS

Y. Security Dealers Assn.

St., N. Y. 5

under the title "The Guaranteed

CANADIAN INDUSTRIALS

&Teette<mA(iompaTi\}

Common & preferred

"The idea of steady employment

an u

;

Fred F. French Investing

is sometimes discussed these days

Canadian Securities Dep't.

37 Wall

Avon Allied Pioducts

Beverage,
employment regu¬

Henry

Citizens Utilities Common

i:,

wage -earner

Detroit Int'i Bridge

garding this question (see "Chron¬
icle,";Sept! 19, 1946, p. 1454):
\

Standard Thompson Products

4-8120
System Teletype NY 1-1919
>..York A,-Mi
'

Ira Mosher of

BROADWAYV NEW YORK 8

Co.

Broadway WHitehall

Bell
'

Ford, 2nd, and

We
Maintain Active Markets in

Guaranty & Trust

Members New York Stock
Exchange
Members New York Curb
Exchange

consideration.
'VJa fyl

Exchange. !

Newmarket Mfg. Co.

Title

158)

Teletype NY 1-1140

has been given

York Curb Exchange

Stpd. Pfds.

Northern New England

Edward A. Purcell & Co.

purchasing

page

industry; ;it

also found its way into official de-

General Aniline & Film A

liberalions of those who Jhay^ Meii
Shaping out1
,,4
M m -ad-.'s
eies^tThus^^^
dress befofe -%h*

some

Tel, REctor 2-7815

Boston & Maine R.R.

(Continued

Colony RR. 5s & 5y%&

Boston Terminal
3%s

Power

in competitive

Mc Bqnnell & To.
:

Purchasing
Decreasing

Northwest El 5/41 :
Old

ap-

im¬

the National

Bell Teletype NY 1-1843

months,.:

despite' its

Boughtr^-Sold—Quoted

H. 6. BRUNS & CO.
Telephone:

?\r r

braach offices

Chicago Ry. A 5s

Since - the CIO has dominated the labor
scene, the tenet of the
guaranteed annual wage has beferi gradually
gaining ground and in

the

war,

to our

Chicago Rapid fran. Bonds

Airlines
V-

Direct wires

>',

NY 1-1557

La.-Birmingham, Ala.

as a means of steady employment. Holds attempts at wide¬
spread enforcement of guaranteed annual wage may, lead to destruction. of private competitive
enterprise, -elimination of small,
business! and finally to statism.

American Overseas
-h'' S'":

measures

In. terms of internal

V-'VCommon ''.4.v : ":fi
Wells

practicability

Douglas Shoe

Struthers

drastic

larity

se¬

;

Franc's

au*

parent

Campbell

take

and notes efforts of NAM and others to anbstitufe

Common & Preferred

the

By A. M. SAKOLSKI

French reserves abroad were es-

Byrndun Corporation

its remain!

New Orleans,

reconstruction credits
outside world,, if they

Dr. Sakolski traces recent movement for "guaranteed annual
wage"
and points out its
inadaptability to competitive industry. Cites
views of Henry Ford,
2nd, lra Mosher and Sir William

$1,500,000,000-$2,000,-

000,000 and
the

from

fail

St., New York 4, N. Y.

HAnower 2-0700

new

the

internal

present,. France still owns
assets
consisting of

foreign

amount

receive

Guaranteed Annual Wage

curities abroad, which

Telephone COrtlandt 7-4070

some

gold,

Doubtful

Employment Stabilization and the

substantial

York Curb Exchange

Credits

Yet the- French cannot hope to

Govern¬

being controlled by the

probably be

although,

run,

Outside

the

utilized to
materials
and

use

25 Broad
New

were

trying to

■^ Members New York Stock Exchange

the

Franc crisis is not retrieved, a heW
reduction ■ of -the' external Franc
rate will be inevitable in the long

Savoy Plaza '■£
Class

for

There will

immediate

Savoy Plaza

Hecpiest"

Steiner, Rouse & Co.'

prices and the high rates

will very likely be able to
the foreign exchange rate

come.

least- 50%

assets

defend
of

& Preferred

(that

it* large budget, deficit, the

cover

$4,000,000,-

thorities,

by the upward

However, the French Govern¬
:

than

circulated inside and outside -the

lations with the outside world are

pow¬

black market.

;

r-vt;

Analysis

reserves abroad

decreas¬

paid for "hard currencies"

New, When Issued

"''/uf,/ro?•

pur¬

trend of

Hathaway Bakeries

French

of .' in-

chasing

120 Broadway, n.y.
WOrth 2-4230

-i-

Franc

internal

Members Baltimore Stock Exchange

v.:.7:.'.

B°u8ht~—Sold—Quoted

■

balance; their budget and to halt
thriftily.- Th^
have obtained large forf inflation, The financial decisions
taken by the liew^^ Socialist «Goyeign loans, especially from th^
ernment of Mr. Leon Blum and
TJnitedv States. ; They have also
been artificially, stimulating iheir adopted by the National Assembly
appear to be inadequate to attain
exports in. order to! reduce conr
this .objective. .'The- crisis of -the
siderably the deficit of their bal¬ Franc is likely to continue.
ance' of trade. Other economic re¬
ing

The value of

the

but

ment

weeks

and months.

are

in order to

buy
food,' \raw
equipment. The French

Cur¬

tion,
therefpre, has been'
rapidly goingA
up during the
last

original

circula¬

rency

Pfd.

Com. &

000

from

France.

Refrigeration

Copeland

future

near

State

borrowing.

the

Cassco Corp.

■'v!;7;. i'-v;.';..'1-:,.;,

increasing
Alarm

Manufacturing Co.

•

seriousiinapciai crisis. Onci again, rumors

The French financial situation is critical
as,

French

amounts

Fire

grip bf

country.

Automatic

I!;!;;, Rockwell

.ctevf.'

HA 2-2772

N *

long

Once again-France is in the

the/Franc wUL be devaluated in the

Established 1920

Members N. Y. Security Dealers Assn.
Nat'l Ass'n of Securities Dealers, Inc.

Political economist cites efforts to bring about soundness
by strictly supervising foreign commerce, in¬
creasing production, stopping tax evasion and reforming budget.
Nevertheless budget remains unbalanced, state borrowing is increasing, and prices are rising sharply. Hence he concludes that
although
there will be no franc -devaluation
immediately, a new reduction of 4he external -rate is ine viiabie in

Expreso Aereo
•With

Thursday, January 9, 1947

ZZZZ

New

120

York

New

York

Curb

CO.

Stock

Exch,

Exchange

Assoc.

Member

Coffee & Sugar Exchange

WALL

ST.,

NEW YORK

TEL. HANOVER 2-9612

Volume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number '4558

t> ' o

Economic

INDEX
f'.iv/:/ ■'■":

Articles

and

Page;

The Economic Outlook for 1947—-Emerson Py Schmidt----Cover,
The: Urgent Crisis of French pranc—Egpn Kaskeline--—- 122
Employments tab ilizati on and the Guaranteed' Annual
Background of 194? Bond

Market/

t—Raymond•Rodgers.'i.-'—123
Price Control in the Securities Field (Editorial)-———— 123

demands

The Past Year in Municipals—Louis

S. Lebenthal———~ 124
Unionism—Enemy of Labor!—Leonard Block——————125

126
126
The Republican Party Platform—Sen. Robert A. Taft_ —/ 127
Neither Labor Nor Capital Should Endanger Stability— ■■
—Governor Dewey
———
—*
/127
Secondary Boycotts—Legal Racketeering!
., /'
r—R., Stafford Edward?V------—---—129 ^
Glasgow—Empire's Second City—Herbert M. Bratter13Q
The United Nations and, World peace—Arthur SWeelser—-. 132/
Un-Curtaining the Uncertainties—-John E. Loshar____--___ 133.

Holds prices

fo he

one

will have

Problems,I

Foreign-Trade Zone Urged,-

136

State Department Domination Over Foreign Lending
Dutch Switching of American Securities Reopened.

'Most Business Heads
•f

137
139

Not"Expecting Depression Reports

140

Senator Lucas Urges Labor Study.:—
Expects 1947 Prosperity for Small N. Y. Businessman—
Z.
/Reports Changes in National peb tOwnership--/1 iLL£
/Wall St. Looking to Congress for Margin Trading Relief,—
"SEC Overrules NASD /pn Membership Issue
^,

Secretary of

mM
Bank

and

Canadian

Insurance
Securities

Dealen-Broker

Investment

/Recommendations

162
'

Einzlg—Britain Favors

NSTA

: •f

130

•

124

-Vi Multilateralism

Mutual

136

Funds...../.............
Notes

142
131

Observations—A. Wilfred May.. 125
bur Reporter on Governments... 160

Published Twice Weekly

Y.,

under

the

Office
ivitUAM B. DANA COMPANY, Publishers
25 Park Place, New York 8, N. Y.
'«

;

Reg.. U. S. Patent.

; REctcr 2-9570. tO:

9576

■

HERBERT D. SEIBERT, Editor & Publisher
WILLIAM DANA SEIBERT, President

/"WILLIAM D; RIGGS, Business Manager

Every Thursday (general news and ad¬
vertising issue) and every Mopday (com¬

statistical issue — market auotation
records, corporation news, bank clearings,
plete

state*

Offices'.

■

March
^

A-

Union,

Dominion

Canada,

Dtber

$35.00

per

$38.00

Countries, $42.00

Bank,

and

♦

»<

»•

•>"

•

StrCet vis-a-vis Wall Street.

—

•

".*•

**.

••

J. F.
/

—

Quoted

//'//////;////.

Reilly &Co.,bc.

New York

//,

Chicago

«<!-

•

117b Our Friends

conflict of Main

■

...

■,

•

'»

Happy

and Prosperous

•

business can go in for smaller paark-up$, it seems absurd
tbihold the smaller firms tq/the %m^
prjee
uihe

^
B6th the SEG' and the NASD, contend t{iat the 5%' yard¬
stick does not attempt

il!l|New Year
ttiRIOD

fgir spread

[oM

Members New York Security Dealers Assn.

specifically tp define what constitutes

170 Broadway

profit.

WOrth 2-0300

Bell System

Teletype NY 1-84

We quote from the pertinent
Opinion of the Commission
in the Matter of the Rules of the National
Association of

(Cpnti|iupd_on

166).

page

Haytian Corporation /;

„

Punta

♦

Alegre Sugar

year;

per

per year.

Eastern Sugar Assoc.

year.

are

interested in offerings of

Lea Fabrics

S. Sugar

Record—Monthly;
(ppreigitllpstage extra.).

High Grade Public Utility and Industrial

Note—On account of the fluctuations in

New York funds/ / "

Sold

/■ '//•;///:/' ////,—

^Commodore Hotel

^Fidelity Electric Co.

PREFERRED STOCKS

the rate'.of.; exchange, remittances toy foreign subscriptions and advertisements must

(plasA A Csmmon Stock////:.;
.

1 v."f/ /

135

25 Biroad

Tel.; HAnover 2-4300

,.4

Central Soya

Members

Street, New York 4
>■

New

Boston \

Glens Falls

;

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

Teletype—NY 1-5

Albany.

Members New York Security Dealers Assn.

Chicago 3

Tel.: Andover 4690

•

Susquehanna Mills

DUNNE & CO.

itork Curb Exchange

135 S. La Salle St^

•

•Prospectus on request

Spencer Trask & Co.

Members, Neto *York Stock-Exchange

Oneida, Ltd.

Copyright 1947 by William B. Dana
Company
;
Reentered as second-class matter,.Febru¬
ary £5, 1942,. at the1 post office- av New

v.y.v< *•. •>-

Bought

Since it is, axiomatic tjiat the larger firms
doing a vol-

Monthly' Earnings Record /— Monthly,
(Foreign postage extra.)

Security Dealers Assn.

$25.00 per year.

made

•'

Teletype NY 1-1203

Member

New York

Quotation

$2J>,0Cr. per/year.

'■

Industries

on spreads which establishes an OPA in the
securities^ business has encountered pur constant.opposition.
/H Among: other fhings, it, completely /ignores the/profit

Other Publications
•<

•'.••••

| Great American

/'/-/•This fiat

Pan-American

Broadway, New York, N. Y.
'}

Securiti^s DeaJers, Inc., dealing with the letters that estab-

find -city., news, etp.).

Other

176

Subscriptions; in .-United/ States,/ U.
Possessions/ Territories and /Members

v
.
,
s.
- «
S., La Salle St.;
Chicago V in.:: .(Telephonft: $tata.06i3)t
T. Drapers' Garden?, Londpn, J2. £/ i
~
Sand; c/o Edwards & Smith.
•
•

176/

Subscription Rates

Thursday, January 9, 1947
'

Act
V.

g:/erly/ changed by fiat of interpretation, Congressional opportunity
tp prevent control of spreads and profits.-.
/
•

Page

York,

^*,

HAnover 2-8970

which intelligent1 finance will oppose as detrimental to Cause of
capitalism. SEC opinion; quoted. Trade custom and usage improp-

^otif I^i L h^$iness and' tends to establish

3, 1879.

and
FINANCIAL CHRONICLE

5% yardstick n significant evil in the securities field. Profit
motif ignored. Creates (conflict between Main Street and Wall Street*

■;

Our Reporter's Report..... vi»... .182
Prospective Security Offerings; .;l28Z
Public Utility. Securities...♦/... ,182
Railroad' Securities•. /;;//,//./ .134
Real Estate. Securities...., ./•. .•. .132
Securities Salesman's Gorner: .'. ;161>
Securities Now in Registration.. f 177
Tomorrow's Markets (Walter
;/ Why te:^ Says)//!./. .•....
176
125
Washington and,; You

The COMMERCIAL

ki._-.f-;••//*i_. <•'

4 NASD

142

Page

•

Stocks.....
:i. „vv.

Mortgage Certificates

befqre Savings Bank Boiid Men of the
York, New York City, Jan. 8, i947.

143

.183.

Regular Features

141

GOLDWATER, FRANK & OGDEN

Raymond Rodger*

//
One of the significant evils .in .the securities field was
£reated hy .the 5
spread -yardstick enunciated throtigh the

;

^./Conference Board

-Marshall Succeeds Byrnes

z>V.'/

Securities Field

Revived,"

—

Panama

-'■

129

129., ,•
—/—I 132
Department of Justice Accuses 15 Companies of Violations
of Anti-Trust La ws__
>——-/
^
131
Many Conflicting Tendencies in the New Year
/*~Li&Salle Extension Instituted
I 134 /
Offers International Stability PIan_,_,_,—'—
134
Wants a Moloney: Act for Labor—^ 135

■

;

Price Control in the

128
—

Weakness in Price of Sijver————

The Bank for international Settlements

' "•<.1

Title Company

the year

/'/.J v-

>■

126

—

•••

;

________

—

*Address by' Dr. Rodgers

Roosevelt's New Deal Revealed as Biggest Market Manipu/lator in History—,—,_——__
127

Preview of 1947

1946

Offerings Wanted

A ^All

National As?n. of Security Dealers, Ino.
State of New

WHitehall 4-6551
1

Thp Stock Exchange's Opportunity—CoL. Herbert G. King—.184

■/

rising to the great
challenge, labor, sowed.aireconoinic^."dragon'.s broodh and capital,
tod/so/yed seeds'/of ;econo.rtiic erro,h which will fise to plague us in the
; /
/
'
(Continued on page 166)
*
1

(ii AU of Wall St. Doesn't Agree with Schram that Haskell's
Registration Should Be Canceled—Edmour German—— 184

■

present costs,

memo

//"^/_•''>•/

Telephone;

eaten/' So/ in ray
characterize the year/

to look back

cause

girl

WALL STREET, NEW YORK

hath

historians

self-addressed

glamour

"Varga"

our

In a-very old book, which we call the
Bible, /
of the parables characterizes a
period as "the '

will

pads.

v-//.

of lost opportunities. Instead of

140
* 141

Danish Tax Specialists to Negotiate Treaties-—
President Truman's Economic Report—

figured

send

don't,

you

an /

fiscal policy. Concludes, 1947 ought
gnod y<^af "for those wbo pan withstand a '
to real competition.,>

opinion,

139
—

cannot be

years; that ~the' locust

Wa?es~*~K®en Johnson—

——

Sees

envelope without postage for one of

return

"Whose Freedom of the Press Is It?—Henry A. Wallace—- 135'
Trading iii U. S. Bonds—j?Y N. Childs—u————135;
No Depression from- High

Against Reaction—Chester Bowles-

to be successful.

expect—

you

FRENCH POSTCARDS?

government

The New Tax Bill—Rep, Harold Knutson
A Model Labor Relationship—John B. Alcorn

likely

and that future of business will depend largely

—

A Program

not

are

unhealthy inventory situation in industry and a need
for serious adjustments in present price structure.

Task of the New Congress—Rep.'Joseph W. Martin, Jr.—_
"The Question Before the House"—Jo Bingham——

What do

' Professor of Banking, New York University

Characterizing 1946 a* "the year of locusts/' Dr. Rodgers cautions
against expecting immediate elimination of business handicaps because
of Republican victory. Holds first hurdle is to
bring' ' / /:/. /z/hz.Z< \ ^;
about wage stabilization, and argues that high wage

; i

;

i^Wage^A./MvSakoljski.^
Economic

AND COMPANY

By RAYMOND RODGERS*

Housing Problem—Its Causejpjd ,Cpre__ /--/------/-Covfer

The

LiCHTtnsTEir

Of 1947 Bond Market

5^-^ li#-: ^loseft^- SiiolPr^Xt Scbii oml^ £ Siff ni^
^
>y.' status
J—J——..cover:
-

Background

-'v

News

123

3-0272—Teletype NY 1-956

•

Schenectady

•

Worcester

Private Wire to

Boston

Foote Bros. Gear Mach.
TITLE COMPANY

Nath. Straus-Dup.

CERTIFICATES

;

-S*

Coca-Cola Bottling Co. of New York
Coca-Cola Bottling Co^of SL Louis

;

il/SllW"' Macfadden
Publications,

//:;/?//;%/;//

/$mid

(Jo.

Lawyers Title & Guar. Co.

II. T. Title & Mtge.

STRAUSS BROS.
' /'.;/! ■•/

Members

Co.;f
//./^//

Newburger, Loeb & Co.
Si, N.Y. 5

WHilehall 44W

t«U Tolatyp* NY 1-20a?

Broadway

,.•

•*:/•/?

DIgby 4-8640' *

Board of Trade BIdg.
CHICAGO 4 •/:/
/ Harrison

207t

Telephone: 3-2137 "
;r

;

Chicago

of Los Angeles

•/

ESTABLISHED 1914

/;/

Telephone:.

•'

BOwlimr Green 9-7400

' Z
t

/
;

C. E.

-r

/•//

Teletypes:
—

National Bank
Co.

//••■';

'
NY 1-2751

«>» .••

•

••

Vs"•

Unterberg.& Co.

M.embers, N.

- jjy 1-375

■

* Analysis upon Request

v,
t'.'V Siy

*''

;V:'Vv^ll.

-J

Trinity Place, New York

■/

/'-/ •;/•/

National Radiator Co. /

Specialists in Soft Drink Stocks

/'* 'Teletype MM 80^

*Public

Trust

HOURQSE S TRUSTER

Direct Wire Service
/
York—Gh'ca{jo—St. Uoii;■

Co.* of

Panama <; Coca-Cola Bpttling Co.
Red Rock Bottlers, Inc. (Atlanta)

Security Dealers Assn

Coca-Cola BoUling Co.

Telefe-pe NY 1-832,834/,TeletypeQG 129
Pan American Bank BIdg.,.Miami 32

New

Iff emb.fr» Neic York Stock Exchange

■>'"INC.*

NEW YORK 4
,,

Prudence Co.

15 Broad

Coca-Cola Bottling

...

Lawyers Mortgage

Inc.

6s, 1968

Y. Security Dealer* A9»'n

61 Broadway, New York 6, N.Y.

Telephone BOwlmg Green 9-3585
Teletype NY 1-1666 ' "

THE COMMERCIAL & FINANCIAL CHRONICLE

124

Britain Favors Multilatera ism

ward & Co.
.

Thursday, January 9, 1947

BUSINESS BUZZ

By PAUL EINZIG

f St. 102*

Dr. Einzig notes Sir

Stafford Cripps' pronouncements in favor of

/multilateral trade and contends this departure from former
policy
of bilateralism arises from accumulation in Britain of frozen con¬
tinental currencies.

Says Britain has favorable trade balance with
Continent, but needs dollar exchange, and is seeking a way to convert ."soft" continental currencies into dollars. ; Foresees European

:;
„:.

trend toward multilateralism under British

Abitibi Power1

Buckeye Steel Castings
Cinecolor

BASLE, SWITZERLAND.—On recent occasions. Sir Stafford
Cripps, President of the Board of Trade, pronounced himself strongly
favor

Chicago R. I. & Pac.
Pfd.

Diebold Inc.*

•

emphasis

Sir

Stafford

Cripps

tinental

certainly a
!' depar¬
ture | on (• the

consumption. He might
as
well, advocate fair 4 weather,
good health, prosperity and ever¬

lasting happiness for all. • Every¬
body; is in favor of all this, but
they cannot be brought about by

new

part
r

gov-

spokesmen.
Until

Machinery

recently

the

Gt. Amer.Industries:

Hartford-Empire Co.*
Higgins Inc.
Hydraulic Press
.

Lanova*

Majestic Radio & Tel.
■*v Michigan Chemical
Minn. & Ontario Paper
Missouri Pac.
Pfd.

merely being in their favor. Nor

official

attitude

decidedly
favor

lateral and

bilateralism.
Dr.

re¬

Paul

most

Einzig

trad¬

trend

play the multilateralist game
according to the rules.
But no

international

And

we
are told by
Sir
Cripps that Britain's sal¬

lateralism..

Even

sources of

tial,

to multi¬

return

though he be¬

the

the Fund

quotas

highly

such

countries will

fundamental

departure

substan-:.

are

drawn

upon

once.v

probable

that

reserve

the

Tenn. Products

Upson Corp.*
' •
Conditioning

U. S. Air
-

United Drill & Tool "B"

Alabama Mills*

Aspinook Corp.*..
N. J. Worsted, New

Municipals

By LOUIS S. LEBENTIIAL

seems

Senior Partner, Lebenthal &
Co.

poor

Commenting on rise in ayrrage yield of municipal bonds from
1.29% to 1.91% from April lo December, Mr« Lebenthal
points oat
that inview oflarge amount of investment funds
available market
in
municipals has overdiscounted increase in their supply as well p
as
expected tax reductions. Predicts passage of Boren Bill and
notes not a single municipal bond default in
1946.

these quo¬

policy hitherto pursued, tas, as they are reserving their
without the approval of the Cabi¬ gold reserves, for purchases from
"hard currency" countries.
For
net.
one
thing, the Fund charges usu¬
The ^explanation libs probably
rious interest on its
facilities, and
in, the fact that while Britain is
no government is
likely to assume
accumulating frozen claims on the
such costly commitments
merely
continent she is unable to receive
for the sake of
converting Sir
dollars
and
other "hard"
Stafford Cripps' frozen balances
rencies. The British export drive,
into dollars.'
'
''
;
though
an i: outstanding
success
1
It is well to bear in mind that
from a statistical point of view,
has been therefore a failure from under the Bretton Woods Agree¬
the point of view of Britain's ment member countries are under
no
obligation to restore the con¬
liquid .external
resources.
The

TV A review of the,
prices

are

year 1946 in Municipal Bonds is important wteii
compared With that of previous years. For the
greatest
recent^

Vacuum Concrete

; v'

-You and Your

Can!"

The Past Year in

from the

Taylor-Wharton*

Hope You're Satisfied, J. C.Oil

the smaller
countries are not very impressive
and In any I case th'ey : cannot be

longs to the Free Trade, wing of
the government, he would
not
have made a statement indicating

Rockwell Mfg.

"Now I

exaggerated importance should be
attached to this factor in the sit¬
uation.
Although the total re¬

now

lies

currencies at the disposal of poor
countries in order to enable them
to

trade.

vation

Richardson: Co.

are

Stafford

Purolator Prod.*

countries

•

lateralist

Philip Carey

continental

ing, arid the British Government
expected to lead, at next
year's Geneva 'Trade Conference come from "hard currency" coun¬
that school of thought which is tries, now- that American direct
opposed
to
multilateral
trade. aid is being cut down, and the
While under the Washington Loan Export-Import Bank has almost
Agreement Britain, is committed; exhausted its facilities.
It
is
to the principle of non-discrimi¬
true, the International
nation, it was fully , expected— Monetary Fund will begin: its
even ' on
the; basis of the expe¬ operations in March 1947, and its
rience of the recent London Trade object is precisely to place hard
was

fight to the last to
retain the right of quantitative
discriminations
leading
to
bi-

N.Y. New Hav. & Hart.

is preferable
to
The gold reserves of

down, a^d are drawn upon very
sparingly, to pay/ for indispens¬
able
imports
which can * only

Conference—that the British Gov¬

Moxie

convertibility., be- brought
by merely • deciding that

about

multilateralism

in
bi¬

gional

can

was

ernment would

Mohawk Rubber*

Evidently,

Expreso Aereo

•-

be converted into dollars.

o n

advocates multilateralism not for
British consumption but for con¬

Old

surpluses to the continent would

This

Douglas Shoe*
General

<£>-

the advantages
of that system

District Theatresf

■*

multilateral
trade.

Old

leadership.

years,
prices
have continu¬

market, which

ously

bonds

risen.

However,

a c-

dealers
at

cording to the

was

Buy¬

er's" Index

successfully

the

market

Birmingham Elec.

American Hardware

Cent. States Elec., Com.

Scranton Elec.

Buda Company
i.

Bulletin

Circular upon

middle

d 1 e

1946

Prospectus available

the highest average of all
times, to

105 West Adams St., Chicago
Teletype NY

' *

1.29% yield,

1.91% basis. For

Request

Exchange and Other. Principal Exchanges

Broadway, New York

increased

returns from

Goodbody & Co.
Telephone BArclay 7-0100

ing

Louis S. Lebenthal

ity of

Members N. Y. Stock

De¬

price

Request
on

averages de¬
clined
show¬

Bought-Sold-Quoted
*

115

tProspectus Upon Request

**Research Item available

Southwest Natural Gas

reached

cember,

**Rodiwell Mfg. Co. /
" Tennessee Gas & Trans;

^Crowell-Coilier Pub,

Standard! Gas Elec.

**Grinnell Corp.
Oxford Paper Com. & PId;

Art Metals Construction
•

Derby Gas & Elec.
New England P.S. Com.
Paget S'nd P. & L. Com.
j

Municipal
Prices, from
until the mid-

1-672

20-year matur¬

4% bond this meant about

13-point

decline

$130

;<
,

■

per

,S: i«'k-.T

The year started with an

age

.^
buy

the

and

did

decline

bottom.

During

December,

future prices

had

clearly charted and

the

course

been

had

found de¬

mand

resulting in increased pricfes.
From a United States
depart¬

ment survey

was

found that the

were

various states

contemplating

soldiers' bonus issues which would
result
in
about
$1.1 billion of

bonds within, the next five
years.

The

survey

and

showed; that future

improvements,;

small,

will

large

amount

less

than

$4,500,000,000 of public works

and

consequently the issuance of

aver¬

yield of 1.42 and closed at

1.90 return. During the. declining

request

its

municipal

bond.

$46,000,000
/Turnpikes
distributed, did

stabilize

that

appear

for

gradual,

sell to their clients. For

April

Textron Wrnts. & Pfd.

was

point, until the
of Pennsylvania

issue

"Bond

vertibility of their currencies till
1952, and even then their obliga¬
tion is not absolute.
of continental currencies, so that
Britain, on
the proceeds of the British export
(Continued on page 160) \
1

remedy would be, of course,: the
restoration of the convertibility

were; reluctant

(Continued

169)

page

CTIVE MARKETS

Ward & Co.
EST.

^District Theatres

*Hungerford Plastics

XifrZ::-

♦Hoving Corp.

Di-Noc Co.

♦Capital Records

1926

■:;-r

*MetaI Forming Corp.
•

■.i•*j. v*s.'

y>- *

Prospectus

*Dumont Electric
• *'•••

„•

U. S. Finishing Com. & Ffd.
T.wfK:-

FIRST COLONY CORPORATION
Tel. HAnover 2*8080

^.*1: L .r-'A'

•

"C*l-

Virginia Dare Stores

Available>

New York

\^v''■/;*•:

Aeronca Aircraft

V-"vVc

♦Prospectus

52 Wall Street

'■

5, N. Y.

Teletype NY 1-2425

Established 1908
JV.

Security

REctor 2-4500—120
Bell: System

Dealers

Industries

request

J.K.Rice,Jr.&Co.
Members

Great American

■'j•

Assn.

SIEGEL & CO.
89 Broadway, N. Y.

DIgby 4-2870

Broadway

Teletype N. Y. 1-714

Teletype NY 1-1942

Volume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4558

CANADIAN
SECURITIES

By A. WILFRED MAY
,V

;
During opening days, Congress has shaped up about as expected.
Major exception was drafting of Texas Democrat Rayburn, last
Congress Speaker, as Democratic leader in the House.- That will
strengthen but at the same time will make more honest, more con¬
structive, more productive the critical opposition to Republican oper¬
ations stemming normally from Democrats as a minority party.
Rayburn is a politician of proven^
ability, but he's likewise a patriot. content long to function as Taft's

will follow him

Democrats

happily than Massachusetts' McCormack,
originally
slated for
Rayburn's job,
;
'
i

■

* •'

shadow.

organization
of
anticipated scar

ambitions

-Presidential

tissues.

i for 1948

were involved,, still are.
Through the session, Republican
Preforms will be pinned down by'
crossfire of White House hope¬
fuls,

In the Senate, early showdown
between
Ohio
Republican Taft
and

Maine

Republican White is

scheduled. Taft wants to be Presi¬

dent, as head of the Steering Com¬
mittee is' trying* to. promote his
candidacy ' by publicly bossing
Senate Republicans/ That public
job nominally belongs to Repub¬
lican Floor Leader White. Quiet,
colorless, but competent and ex¬
perienced, Mr. White won't be

bills

have

been

and

dropped y into the
Senate
and
House hoppers. Of every hundred,
99

are

worth.

They can be scratched off
ical! dandruff.

;

Wilfred

May

consideration,

will

polit¬

many

days, maybe weeks^ before: 'pro¬
posed legislation which really has
any chance of enactment gets Con¬
sideration.
And you
can
mark
down that most measures finally
reaching 5 a vote will bear the
names of Republican, authors.;
(Continued- om page: 167)>
-

Steep Rock Iron Mines Ltd.
5i/2s, 1957

HART SMITH & CO.
5S WILLIAM ST., N.

American* Insulator

Albert Pick
Carbon Monoxide Eliminator

effort to
reconcile the^lmdertakings of the Potsdam Agreement, signed Aug. 2, 1945, with the present politi,1 cal / and economic exigencies facing the Big
Powers, The tightrope which the signatories there

American Beverage

PETER BARKEN

hand attempts to safeguard future peace

against Germany's ever
position to attack-her neighbors, necessitating destruction
of her war potential. On the other hand, other measures were insti¬
tuted for preventing her destruction or dismemberment, because of
the need for an; economy recovered sufficiently to feed, clothe and
house an efficiently-working people (albeit below the living standards
of other western and central European countries). By way of further
compromise, .Potsdam also provided that'Germany make; reparations
through surrender of existing goods arid equipment, and of credits
abroad, although payments lasting lover a long period were barred.
being in

32 Broadway, New

l; ^Thte

program

Specialists in'

of; course reflects! ari a^-bld ldilemmay namely;

the year-end report of the Colmer Committee (House Com¬
Postwar Economic Policy ) very clearly points out, the "ob¬
jective in administering the economic affairs of Germany is to make
that country self-sustaining, without at the same time permitting it
to threaten the peace-of the world." We are becoming increasingly
conscious of our material sejf-interest in stimulating Germany's re¬
naissance, to lighten the huge relief burden on American taxpayersestimated at $200,000,000 per annum in the U. S. zone, plus a com¬
parable sum loaned ffby;us^for relief tfyrppses in: fhe^British anc

and the malpractices of a few big employers

nurtured

in less distant years,

ppjnion in the

than there

public,

management,

mind

are

chiefs

adhered to -the side of the unions.

cult,

But

in
these days of
paralyzing in¬

dustrial strife,
change or

remove.

Virtually'
everyone
even

the

jawed

"Unionism

unionism

has y built

—

in
Leonard

"in

principle";

Block'

the other, is a
proper and democratic procedure.

ing in some unions; nor is it in¬
spired by impatience and disgust

;
This belief is wrong.
It is a
conception that has been colored

with

by femphasis
ated

sides" in
are more

local issues; activ¬

man's instinct
a

Because there

battle.

little

"take

undemocratic

Railroad

Brotherhoods

Typographical

For,

Arkansas-Missouri Power*

BROKERS

•*

•

.•>

Kew

York

Exchange

Stock

YORK 5, N. Y.

Telephone: BArclay,7-8506
Bell Teletype—NY

Rockland Light & Power;
Sioux City Gas & Ught^

1:1248-49

We maintain active

markets

the

Great American Industries

PREFERREDS

Eastern Gas & Fuel 6%
Queens Borough Gas
New England Public Service All Issues
jt

Willys-Overland, Pfd.

& Elec.

* Prospectus'available to Dealers* and. Bankers only

G. A. Saxton & Co.,
70 Pine

Whitehall

the

4-4970

Dumont Laboratories
r

W. '

■

Inc.

WSMM©

*—

H. I. BAKER &
40 WaU

Teletype NY 1-609

;

Pantasote Co.

Street, New York 5, N. Y.
.

trading

following:

Southwestern Public Service

Members of

CO., inc.

WHitehaU 3-0590

Street

page

Nat'l Securities Dealers Assn,

—

172)

Dravo Corp.

CO., Inc.

American Maize Prod. Co.

DEALERS

announce

the

formation

qfv

GOULET do STEIN

)

27 william street

s";! •' "new;:york

>Tel.; HAnover 2-7768

^ Foreign ExchangeJ

5, n.,y.

.Tele.; NY1.-1055.-*

Gold

transact a

FREDERIC H. HATCH' £ CO., IHC.

Silver ^ Platinum.
:

79 Wall

St^New VorkX

N'
63 WaU

Teiepboiie

general

over-the-counter

HAnover; 2-8681

•

iniMBsna'Y^rSEGURCTY
Y.

»EALEEa'ASSb<nATic^5^4.;i .-fV;

./rI'

securities

business s ■ ••

Wm. F: G0UUET

165 Broadway, >NeV York

Forgjng Co,:

120 BROADWAY, NEW

Northern New England

:
No. Indiana Public Service

1■ •

Moore Drop

170)

Domestic?Unlisted Securities
;

Central States f|ec. (Va)
Christiana .Securities ?

Bought»—Sold -r-Quoted

HODSON& COMPANY,

All American Aviation

Birminghem. Elec., Com.

page

Common

1-2613

City, N. J.

St., Jersey

e'gjj Trading Markets In

such a continuing .safeguard is
will be epitomized by the Moscow

Foreign Securities

Hudson

organizations. And

(Continued

F. BLBBTREU &

Branch Office /

' Michigan Public Service

The

and

Teletype

Dallas Railway & Terminal^! U.Pub. Serv; of New Hampsbire^
Iowa Public Service
Republic Natural Gas

indict¬
ment includes all unions
even
the "good" conservatives like the

people in the world

113

coercive

and

in others.

Uird, Bissell & Meeds 1

This

practices

i: Members

reasoning is not the result
pf ire at the records of racketeer¬

management

status.

working people in gen¬

admits collective bargaining, with
union leaders i on one side and

Securities

New York 5, N. Y.

„

WHitehaU 4-2422

obstmctinn preventing

eral.

and file of

Dealers

Investment

Telephone

COMMONS

second

Brokers

62 William St.

(Continued

exploiting class whose pressures
result in inequities and discrimi¬
nations at the expense of the rank

re¬

"believes"

Unionism the Exploiter

iron-

actionaries

Another

the intra-Allied

—

among

MAKER &HULSEB0SC1

Intra-Allied Diplomacy

unionism, as it operates to¬
day is unfair; to labor! It results
in a bad economy that is bad fo*
the people and bad for the copn;try as- a whole.
Its victories'do
not result iif th&^greate^ good for
the greatest
pumberA 7

even

—■"A"™"

proclivities

barons of

tjhat is ;j diffi¬

Philippine

(Mining Issues

;

theoretically could be effectively con¬
trolled by institution by the Allied countries of a system of direct in¬
spection and by continuing control of imports of strategic materials;
but it would be-only a matter of time until these steps; which
theoretically could effectively prevent the German war machine from
rising ^gairi,' would "become inoperative because of the psychological
factor of the victors' ^war-weariness."

"opinion" has

War-making

fy The strikebreaking practices employed, in the early coal strikes

and

French zones.

Domestic, Canadian

;■

mittee

Drug manufacturer declares that unionism has exploited rank and
file of working people. States union successes in raising wages
have not raised aggregate pay, bat only distributipn thereof—to the
detriment of the unorganized. As* cures ? for such inequalities he
proposes: (1) elimination of pressure exploitation by well organ¬
ized unions; and (2) establishment of a sound Wage policy univer
sally applicable to all working people.

Tele. NY 1-2500

Thus,

By LEONARD BLOCK

York 4, N. Y.

Tel. WHUehall 4-6430

to forestall the danger of warmaking, and at the same time avoid eco¬
nomic' paralysis?, resulting in extreme ? poverty >and-civil disorder,

Labor!

iViillihg

San Carlos

Toronto

Montreal

Viw York

-made for the United .Nations to traverse, on the
one

Unionism—Enemy of

HAnoml-MM

V. 5

Bell Teletype NY 1-895

it must be realized that the Moscow
proceedings will not follow the traditional tech¬
nique of Peace conferences, where the victors
settle with the vanquished enemies; but the cli¬
mactic airing of the German situation will rather
represent an attempt of the victorious Allies^to
adjust their own "within-the-family" struggle
for power.
The immediate difficulty lies in the

cockeyed

conceived

1950

Mexican Lt & Power 5s,

Even so,

hatch

usual

than the "best deals attainable."

No.

The

applicable to World War II.. If the world is to have any
semblance of genuine peace, there must be real
agreement there/ in lieu of the previous settlements reached regarding other European and
Asiatic areas, which have constituted nothing

VBig question is whether from
this hodgepodge of GOP political i
I ingredients will emerge a Republican adroit enough to force
the
sublimation
of
personal
ambitions to party harmony and •*
national welfare. Best bet - is—^

■

Conference, taking place two months hence, can
scarcely be considered a mere item of "unfinished business" left by
the departing Mr. Byrnes. Likely to last two years—as forecast by
the resigning Secretary to President Truman—.the coming attempt
to determine the future of Germany will constitute the actual Peace

Republican
Congress left

Moscow

Conference

Company 5s, 1959;

Brown

£,7-.yGermany—Pawn in Intra-Allied Struggle
The

196$

Abitibi Power & Paper 5s,

BYRNES' LEGACY TO MARSHALL ;

;

•.

v>;.

IRVING STEIN
Formerly with-

L. D, Sherman & Cot:
-

Bett Teletype

THE COMMERCIAL & FINANCIAL

CHRONICLE

Thursday,1 January 9, 1947

baltimore

Danish Tax
Baltimore Transit

Co.

Issues

All

Specialists
Negotiate Treaties

J. Walter Thompson Co. To

Robert Jy, Sullivan

Bay way Terminal

the

Wall

Monumental Radio

Preferred

relations

Thompson

>•

joined

staff

Company,

taxation, and prevention of tax

1
Mr.

Street, New York City,

■■

House

the*

tion

controls, points

"Chronicle").—-A delega¬
Danish

tax

specialists

S. CALVERT

ST.,

Monell & Co., 115
Broadway, New
York City, members of the New
York Stock Exchange, is celebrat¬

BALTIMORE 2

Bell Teletype BA 393

New York Telephone REctor

H. S. Smith, partner in Minsch,

Exchanges and other leading exchanges
6

Years in "Street*-<r|^

•

Members New York & Baltimore Stock

2-3327

ing 48

treaties between the United States
and Denmark for. the avoidance
of

double

vention

boston
J

philadelphia

;

expenses,

Merrios on Request

Members

Homsey Go.

BOSTON

Also

New

Member of

York

Curb

Internal

Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253

6-8100

Private Wire System between

B<m

Grinnell

Circular

on-

Corp.

■

;

and

Thomas

BOENNING & CO.
1606 Walnut St., Philadelphia 3

Street, Boston 10

PEnnypacker. 5-8200

Tele. BS 128

;

Private Phone

;

ncc

•

: -

to N.

COrtlandt

Messrs. Weil were preVibusly
partners in Kohlmeyer, Newburger & Co., and Weil & Co. J Other

this

^Botany Worsted Mills
Empire

BROKERS and DEALERS

•>,

Steel

Iowa Power &

Pittsburgh Railways Co.

Sterling Motor Truck

STOCKS

Warner

3.30% Preferred Stock

Wawaset Sec. Co.

H.M. Byllesby &

Established

EQUITABLE
DES

BUILDING

MOINES

Phone 4-7159

Bell Tele. DM 184

,, „.

still hungry; they,

enormity, of

'•*

United States of

America—send¬

By JO BINGHAM {

Contends

grants ill

BROKERS

Salt Lake

PH 73

iEriticiiet
iccbrd'ahce With state individual heeds.

basic principle adopted iii extending grants
becoming

mww mm

provisions, and Fed¬

encroachment

Concludes £ome

other

and

state func¬
reliable

founds tiince,

as it
stands, the "variable grant" formula "is an
administraitive gift horse which needs to be looked
squarely in the moiith."
The traditional

wedding-dress inventory of the
ihight • be Used to describe some Vof the
honeymoon - issues facing the new Congress:

bride

City, Utah

Teletype SU 67

■

now

Stock Exchange Building

RIttenhouse 6-3717

1898

Members Salt Lake Stock Exchange t

OFFICE

Stock Exchange Bldg. Phila. 2
Telephone
V.'
r
Teletype

IOWA

are

ing its igleam'of; hpi>e;to the 'far-♦Addrels of Speaker; Martin at theimbst; points •:pf^he£wbrjid;; -.11
the opening of the 80th Congress, the iorcd bf freedom and prog-Jan. 3, 1947.
';
(Continued on.page 159)
* t

tions.

W. H. CHILD, INC.

Company

PHILADELPHIA

homes; they

are still dazed by the

re¬

generouslyfpresented hie to. the Ppdi-', stilishurns^pbrightly i in in^

House.

method of allocation must be^

v,Y* *W ,• v'"J

Bought——Sbld—Quoted

eral aid is

Company

deep

is iii contradiction tb statutory

UTAH MINING

Light Co.

;

fail
a

and women-—

and.-little children-^-are^ still dis¬
placed ; far,: from ; their ^ 'native

sponsibility in j^f-hbtrible^^fdisastef:fWhich
wrecked vtheir ' livfes, laid wasted
(assuming. t h e
duties of. the Speakership because their'hatiye lands, lbft Ihehi With-out hoines and,: in many
cases,
of the- tremendous problems which
bereft of loved Ones,,/
.;
beset bur country and bur times.
?
4:1 pay tribute to the honorable
Those| millions of: war stricketf'
gentleman; frorri Texas ' whom I peoples turn to the beacon of free-,
succeed to the Chaiir; • and whb> has dom and security.vwhich, thank

policWbf varying- siich

Empire Southern Gas

Millions of men

HoiuJ.W.. Marling Ji*.

J•V

historic

TRADING MARKETS

INCORPORATED

uThe Question Before the House"

unikicc

WHEELOCK &

periericed.

privilege
Orderly government has, to a
of b e i n g the
great extend lost control in many
S p e a k e b of
countries,
t f
'

officers, were associated with Weil

PH 30
V. C.' ;

7-1202

American Bdx Board

lies

and

could

Secretary-TreasUrer,

24 Federal

great honor

have

Whalen,

tim^

world

sense

dents;

Waiter J. Connolly & Co., Inc.

fail

80th CongresV

existence -in

cfushed,; broken ; and in waste',
deep 1 y from: tho raVagesfbffttte-mbst
touched by the rible war mankind has
ever exb

Weil & Co., Inc. Has

;: Officers of the firm are Walter
H.;; Weii? President; Walter, : H;
Weil,; 7r^ Evangel N. ^Ariagnosti,
and Travis
T,-Hailey, Vicfe-Presi-

Request

Tel. Hubbard 3790

could

into

when f most ? of "the1

august
body. No man

Street, to engage in
tho! securities .business.
/ 1

Inquiries Invited

mah

and

at 830 Union

-■

Colleagues,> the

upon

comes

N of

Reve-

NEW ORLEANS,' LA.-~-Weil &
Companyj Inc. has opened offices

American Meter Co.

Boston & Maine RR.

Preferred

honor
me.

•

Bureau; of Internal R^ehue^
Washington 25, D; C.
.1. J

Opened iii New Orleans

Philadelphia, New York and Los Angeles

Prior

King, Special Deputy
of

assuming the duties of Speaker of this House of
Represen-'
tatiyes, I am deeply grateful to my
colleagues for having bestowed'
;
'
"
this
signal^

suggestions from them concerning
problems v in tax relations; with
Denmark. Communications in this
connection should be addressed to*
Commissioner

nuey

Exchange'

re-,

preparation for the negotia¬

Mr. Eldon P.

and

cutting ~gbyernment
eliminate Communistic ana

Federal positions. Sdys jpebple shduld
ond not government
people, and insists on >
dominance of Congress in
shaping national policies. Asserts that f
v,!?!!?
* and cooperation we can achieve prosperity and1
'
< security greater than ever known before.
;
.
\
v

Teletype BS 424

Y. Telephone CAnal

and

1420 Walnut Street, Philadelphia 2
Now York
V
Lbs Angeles

9, MASS.

HANcock 8200

New

York, Philadelphia
Los Angeles Stock Exchanges

31 MILK STREET

;

■

BUCKLEY BROTHERS

Inquiries Invited *:;i;-V:v;;,t

du Pont,

materials scarcity, and gov*
new
Congress is to restore

out task before

reduce. taxes

will welcome conferences with in¬

Philip Carey Mfg. Co.

Warren Brothers Class "C**

;

with

terested parties or statements and

Saco Lowell Shops
4."

evasion

pre¬

impeded production from

tions, ;theyc American^^delegation;

Gruen Watch Co.

Parker Appliance Co.
Purolator Products.

International Detrola

Naumkeag Steam Cotton
>

tax

ad¬

Dwight Manufacturing Co.

for

and

cooperation

spect to income taxes and to taxes
on estates of deceased
persons.

Bates Manufacturing Co.

Berkshire Fine Spinning Assoc.
.

taxation

ministrative

in Wall Street.

years

tions

®n^TPr!?e>; to balance budget;by

to visit Washington at
early date to conduct negotia¬
looking to the conclusion of

s^"^es>JbdustriaI disagreemfertts,
ernment

WASHINGTON, Jan. 8 (special

expected

STEIN BROS. & BOYCE

Speaker, calling attention,

evasion.

Congress

By IION- JOSEPH w. MARTIN,
JR.*r
Speaker of the House of Representatives

Will seek elimination of double

Sullivan for ten years was with
the financial department of United
Press.'-,::
;v.r-' v;:: v V>:

National Sash Weight

public

Walter

Davis Coal & Coke

has

Task of the New

Phone 5-6172

jacksonville, fla.

st. louis

Foremost Dairies, Inc.
.•I"

; *

Common & Preferred

Winn & Lovett

f ''

669
"■

SECURITIES

i"J

Nat'l

Jacksonville

•

*•

•*'

•

>■:.-Ml

Circular On request

£.ft•"

'*'T,AlVJ:;

STREET

■

'«

■

:;v'^

-7

».

-v

>;>■

INVESTING COMPANY
"i

•

S -1

INC.

Bank Bldg.

1, Florida

Members St. Louis Stock

«'

Teletype JK 181
Petersburg, Fla.

Branch—St.

"V '

ST.LOUISI.MO.

■Florida Municipal £ Corporate Securities

—

V'V

MOHAWK VALLEY

[Clyde C. Pierce Corporation
[' Long Distance

'•«

OLIVE

'-i

Barnett

Mills, Inc.

BOUGHT—SOLD—QUOTED
:

;.sjrks sio:'

Cotton

Stix & Co.
INVESTMENT

•

Utica & Mohawk

Grocery Co.

Common & Preferred

Sbiriething old—Federal aid to the states.
Something hew-—Thie variable grant. • ■
Something-borrowed—The public debt.
Something blue—The taxpayer. ;

utica. n.y,

Exchange

i3S Genesee St.

Utica 3, N. T.

Tel. 4-3195-6-7 ,'

Tele. UT 16

salt lake city

American Air Filter
American

Turf

Consider H. Willett
Girdler

Utah Power 6»

Ass'n

}

montgomery, ala

NORTHWEST MINING

Lime Cola Co*, Inc.

SECURITIES
For Immediate Execution of Ordera

f Utah-Idaho Sugar

Corporation

Amalgamated Sugar

Murphy Chair Company
Winn &

SPOKANE. wash.

Light

Jo Bingham

Although balancing the budget, reducing the debt
and cutting the tax burden are popular, major items on the hgendai
Federal aid is a hardy perennial ahd will not fail to show up prom-;
inently in W Dumber of fields^;^
Annual money grants-in-aid to a peak, of $815 million was reached in
the states bfegan in 1887 when the 1943; the estimate for 1947 is over
Hatch Act authorized a lump sum a billion.
For several years it ha^
Of $15,000 to each state to estab¬ been a three-quarter billion dollar
lish an
Agricultural experiment business involving aids to such
station iri connection with; laiid state functions as highway con¬
grant colleges.
Aids were later struction, protection of natural re¬
giyeh for other purposes, and the sources, vocational education and
amounts paid out increased.
In rehabilitation, employment serv->
1915, Federal aid was $5.4 million; ices, health and welfare services;
The last
but by 1937 it amounted to mdre and nublic assistance.
than a hundred times as much; and
(Continued on page 169)
;

Quotes call TWX Sp-43

Exchange

A.M.,

from

Std.

Pac.

10:45

Time:

Floor

Common Stock

il:30

Sp-82

Bought—Sold—Quoted

other hours.

Lovett Grocery

■

Offerings made only by "prospecttis

STANDARD SECURITIES

!"! BANKERS BOND "E

Edward l. burton

1st

Floor, Kentucky Homo Life Bldg.
*
LOUISVILLE 2, KENTUCKY
Long Distance 238-9
Bell Tele. U3 186

ESTABLISHED 1899

-160 S. Main Street
Salt Lake City !, Utah
BELL

SYSTEM

TELETYPE

464

upon

request

CORPORATION
Members Standard Stock

a company

Incorporated

—copy

Brokers

Exchange

Spokane

Dealers

THORNTON, MOHR & CO.

Underwriters

Peyton Building,

Montgomery, Alabama ;

Spokane

Branches at

Kellogg, Idaho and Yakima, Wn.

»v.
:

...telephone

3-6696

L. D.

Teletype r.t
cMGxS4^^'

The

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4558

Volume -165

Republican Party Program

U. S. Senator from Ohio

;

Asserting main issue in

recent

flection was • restoration of free-

*dom and reduction of interference with
1

war to peace; (2) niodify control se^Aa
productive energies of industry,; labor and agriculture;

(3) putbasis. Says* first task is
ending controls, and elimination pf powers of many administrative;
boards and revising New Deal laws, particularly those relating to
labor/ Says labor legislation vetoed by President will be included
in program."
\
•
»
\ '
•

ting the government

on a

;

their

The

organization

conducted

in of 35

of the
a

Senate

action because

market,
and
appraisal
are- revealed

President's

associates,

of<&
of strategy
in

of the; epochal • and
turbulent days of the early-New

The
Republicans and a
number of Democrats; constituting
about two-thirds of the- holdover

the Senate

kept record

contrac¬

his

Senators.
.

P,esi,fcrt Ca"ed MontaSue Norman "01d Pink

currently-disclosed excerpts from
the former Secretary's personally

new-

ly-elected

grain

late

key

few Southern Senators against the swearing

dealings

the

;

today by a fili¬

blocked

was

monetary

Senators,

Deal.

•

time

Mr.

Morgenthau,

appointed

Gov¬

got to do something
price of wheat."

the Farm Credit Admin¬

about the

istration. Mr.

Morgenthau's organ¬
carrying through a
mortgage refinancing opera¬

ization

late

was

But

feared

was

that the

another mil¬
support the

mediately he bid for
lion at

74Vs, trying to

price at that level. The market
plunged through this stop order
16, Mr.- Roosevelt called Mr. Mor¬ and the price flopped back to 63.
Continued on page 171)
\
genthau at his home. "We have

step aside temporarily until the
Senate
Was
prgsfniied * J and the
President deliyerbd1 his message
on the State of the Union.
The

Mead

had

Morgenthau got Hopkins' O.K.
; that
night, and the next
morning arranged to buy wheat
vast
through the National Grain Corp.
tion, and it succeeded in helping He first bought a million bushels
many farmers; to hold on to their at between 72 and 74 cents. Im¬
ernor

land.

who is charged

with

whom he

refinancing •vyould break dowri
under, the impact of continuing de¬
clining prices. On the night of Oct.

took: the position that
Senator: Bilbo should be required

re¬

seat

this

war

tors."

They took this

fused

with

mil,ion busMs of wheat to "squeeze the life out of tU
T?** [easu7j^ec 7etary's ^'ary discloses. Gold price fixed daily at >

amaz'nS periods in the world's entire financial
Mmnti*L°nal +iarr> °- 1 New ^al's Secretary of the Treasury,
"philosophy'' ? tile earlv'00.sev.elt~Morgenthautheir gigantic manipulation
oAtie early nmeteen-thirties, of gold-buying program, oi
*

Henry Morgenthau

buster

lnrkv'm

bedside breakfasts bv

history

pay-as-you-go

Biggest

Manipulator in History

§ Whiskers," an d Dean Acheson

to;release

jtransition from
'

•

Revealed

' v

S STidtff.

family life and business

by government bureaus and, autocratic labor leaders," Republican
Party leader outlines immediate! program as t (1) completion of

mi*

By HON. ROBERT A. TAFT*

filibustering Senators insisted that

Senator Bilbo
of

Mississippi

the

War

Investi¬

should

Senate

the

gating

Com¬

mittee

with

was

using his high

Senator for his personal gain in

first sworn in.

is effected.

radio

organ¬

I hope that
supporters
may
recede
from
this
position
tomorrow;
Otherwise it will probably be nec¬
essary to hold the Senate in con¬
tinuous session until organization

Robert A.Taft

off ice j as
United' States

United

Kingdom 4 s, 1960-90

Bilbo's

"improperly

not

all unless* Senator ;Bilbo

ized

Senator

addressby

H. Morgenthau, Jr. President Roosevelt

Gaumont-British

only be said that such

can

abuse

clear

Taft Over the National Broadcasts

Trust

Rhodesian Selection

filibuster

Particularly significant light is

thrown

power

the Administration's at¬

Scopliony, Ltd.

tempts tp alter the low level of
1933 prices, motivated particularly
by Mr.; Roosevelt's^ fear of the
"danger; of bankruptcy'* for Amer¬
ican- agriculture;
.<
.

jtng Network; Jan/ 3', 1947V

;

Neither Labor

(Continued on-page 150)

;

Capital Shonld
Endanger Stability: Dewey
a

F.D.Rv!s Quarterback Technique
•

fair j

with

nity and security of individual and Holds
continued economic progress, r

..*•*

Stresses digHave essentials for

ures

secure

international security- without surrendering a vital

motion /Wpnld- gain
be throwit for a lPss.
make

modern
•

WW?

so-

Your' State adminir

term.

new

the

people and it has
given; a .new mandate for
good government. We pledge our¬

security
giv¬

ing

selves

essen¬

vance

anew

to maintain and ad¬

who

the dignity of the individ¬
and the right of every citi¬

tial freedoms."

ual

He counselled

of-our State freely: to "pursue
road to happiness with
the full support of his government
his

course

which

would

allow

-neither

labor

nomic

stabil¬
Thomas

In inter¬

ity;

£.

Dewey

to have both

full share and more,

Tdday we pledge anew our, loy¬
alty ta the ConstitutiQnsv of our
State and Nation; and* we take up
the opportunities and-burdens'of

General
*

Com¬

Machinery Corporation
•1

Iloving Corporation

the

Other farm
jump. ■

*Title Guarantee & Trust
.

fol¬

Memorandum

request

New York Hanseatic Corporation

purely specu¬

the

could

farmer

bottom again

120

BROADWAY, NEW YORK 5, N.

and)

the. beginning i of

October,

wheat drifted down from

$1.24 jto

Them the '• downward trend
gained momentum, and the price
fell in. 12 days to a low of under
70 cents.
*
/
N
$.90.

Mr.

Sick

Wheat-Bull

Roosevelt

had

discussed

74,687 Shares

Halliday Stores Corp
»

/V;""v' ' 'V.

■; v

v .*■

Common Stock

Sullivan-Waldron Products

Company

SJHEEka&to.

Member* N, Y. Security Dealert Ass'n
"

•*

We render

•*.

■ :.■*■

/vy.:.

COMMON STOCK 1
:'fV-.V't"'yry.v. V:

Manufacturers

;

pf the Nationally Known

"WHIPSTER"

PROSPKCTlfS- ON REQUEST

brokerage service

;

'■

;r-;
-:

ih' all' Unlisted Securitiesfop

Ranks and Dealers

Ward & Co
F. H. koller & co., Inc.
;

60 Wall

Street, New York 5

Telephone:,WHitehall 3-7830
Jeletype Noa. KY 1-2762-3

-tCPr-

;

*Members N. Y. Security Dealers Ass'n

120 BROADWAY

^
KEW YORK 5

1 111 BROADWAYa NEW YORK 6, N.

BArcttjr'7-0570^

Teletype: NY 1-583

Telephone: BArclay 7-5660

dropped out of the market. Between the market peak on July 18

—tJ

Co.

BOUGHT—SOLD—QUOTED

difference

products

harvest his crop, the

inUhe win?

nihg pf thkt mighty struggle.;
(Continued on ;page 157)
The text of the address follows; ; ■

Campbell & Co., Inc.

A, S.

low of 45 cents a bushel to

lative;' Before

Your new State" administration
rela¬
tions, where "the question is how, Wasx then dedicated to the task of
can each nation be secure against
turning all. of the energies of our
an attack in an atomic age with¬
people to; the winning, of the war
out surrendering a vital part of its and I believe it can be said that
sovereignty," he asserted "we can the. people of our State did their
a way

know

But the, rise was

national

and: will find

$1.24.

,When we met in this Chamber;
four years ago all of the institu¬
tions we represent were under the
heaviest challenge. of, .our history.

freedom and security."

far

lowed the

the

capital to
endanger eco¬

•nor

didn't

from

own

active preservation of his
liberties.
in

BArclay 7-0100

hptween wheat and rye, had bid
wheat up. over a six-mopth period

zen

middle

10 yard£ pr

The,early "plays" of the Admin¬
were
successful, in Mr.
Morgeiithau's opinion. Prices rose
sharply. Farm prices, especially,
soared.' By July 18, 1933, "bulls"

been

without

touchdown

istration

decision of the

achievement

^Telep&one

]H.e wanted: to

modity prices went;

stration has submitted itself to the
>« <

115 BROADWAY

Governor Thomas E. Dewey, in. his second inaugural address, de-<

industrial

and Other Principal Exchanges
NEW YORK 6, N. Y.
Teletyps NY 1-972

Members 1V. Y. Stock Exchange

was?

be,, but vthe play after that de¬
pended on whether the play in

•livered at Albany on Jan. 1, called attention to "the great dilemma
Jbf opr

back of a football team. He knew
what tkevnest play Was going to

part of sovereignty*

J
;

technique that

compared himself tp* the quarter¬

Deplores in|eraal, qua^relling ^ and;. j

^"Hunglin^^aiid calls for vigorous, courageous andiarse^ng/mej^

it, the

saw

defi-^
nitely experimental. For example
in April, 1933 the Chief Executive

balance between rights of alt should bemaintained.
*

As Mr. Morgenthau

President • was fightihg; the battle
for higher prices on many' fronts;

Dept.

Goodbody &. Co.

nor

fiew^York Governor, in second inaugural 'address,- assess

British Securities

ny WW*

-i

THE COMMERCIAL ft

-j

FINANCIAL CHRONICLE

••

•

\ J ''

•

•'

•

John

of Kuhn, |

Snyder, Jr.,

Loeb & Co., has been elected a

Utility Securities

<«'**'*

;

John I. Snyder Director

;

Public

•'

Thursday, January 9,>1947

John

Snyder,

Jr.-

•,.*

di-

rector of Pressed Steel Car Com¬

pany, Inc., Pittsburgh, it was an¬
nounced by Ernest Murphy, Pres■

■

•

-T-; • t{-; #

Fiduciary Management,
Incorporated
That this

porations

country's leading

need

expert

cor*

financial

^vice;^arid ipftcij funds to tem^r ;
rarily finance a consolidation or
sale, has been demonstrated in the

case

Fiduciary Management Inc.
which, after three highly success¬
ful years in this business, is now1
about to expand.
>
,

The Fiduciary Management, Inc.*
closed * end,
non «• diversified-

;

management

company; is

issuing:_

its stockholders rights to sub->
scribe for an "aggregate of 867,420

additional shares of its presently
authorized common stock. 1 This'
additional stock is being offered
at $3 per share to stockholders of
record Nov. 25, 1946, and subscrip-

tions

payable

are

3 pm,

before

or >

(EST), Jan. 24.

The most profitable field of en^i
deavor for the corporation at the

present time; lies in
business

situations

investment

the- so-called

type.

special;

Thusthe..

man-1;

agement proposes to pursue hence¬
forth as its primary business the

organizing and financing of new, ;
and
the reorganizing
and refi- •
nancing of existing business en¬
terprises,
including: enterprises
where, in the opinion of the man¬
agement, the correction of a tem¬
porarily unfavorable situation
through improving the organiza-f?
tion

and

business

working capital
should

result

supplying 'j:

other financing .id-

the

corporation-

ultimately realizing a profit in its
investment. The corporation has V
already engaged in transactions of
that type with profitable results.
Notable examples were the Crosly
Corp. consolidation with Aviation
Corp., Buffalo Machine & Foun¬
dry

sold

Blaw-Knox

the

and

corporation's recently purchased
Woodlands Farms, at Sacramento
Calif.

Trading Markets in Common Stocks

Numbered among the board of

Birmingham Electric

Public

Delaware Power & Light

Puget Sound Power & Light

Federal Water & Gas

Southwestern Public Service

Service

Indiana

directors

Fiduciary Management, Inc

Tucson Gas & Electric

COMMON STOCK

Jackson

are

President

Martindell,

Treasurer

and

the

corporation, who is also President
and Treasurer of Fiduciary Coun¬
sel,
Inc., which manages over
$600,000,000 in Funds; also Powel
Crosley, Jr., President and director
of
Crosley Motors, Inc.;
Charles

Hook,

President

•;

American Rolling Mill.■ Co.; and J
Glenn L.
ESTABLISHED

Martin, President of The >

1879

Glenn L. Martin Co.
,i

Originally the stock of the cor*

poration

Prospectus

American Gas & Power 3.5s & 3.6s

Request

per
one

Central Public
/

...

ESTABLISHED

Members

Assoc.

Gilbert j;postley & co
29 BROADWAY.

NEW YORK €, N. Y.

Direct Wire le Chicmge

New

York

ing

York

Curb

Telephone HAnover 2-6660

per

Present

new

share in April,

rights

•

give

the

.
.

The net value of the assets ap¬

Exchange

plicable to the capital stock of the £

50 Broadway
.sv; \

the common stock at $3 per

share.

Stock 'Exchange

New

Members

stockholders the privilege of buy¬

1868

1945, the

basis in June,

1946.

Portland Electric Power 6s. 1950

1944 at

share. Split-up on a four-for-

stock sold at

UtilitiesS^s, 1952

sold in

was

corporation is as follows: Jan.
;j

Bell Teletype NY

1-2575

1£45, $2,184,385; Dec. 31,. 1945, $3,-. ;
075,548; and Sept. 30, 1946, $2,942,436..

•

Volume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 45S8

129

Premier de

Gasperi's
Washington Activities

Secondary Boycotts
—Legal Racketeering!
I

Trying to reach agreement with
UK

By E. STAFFORD EDWARDS

Mr. Edwards calls upon

Congress to outlaw all forms of secondary •;>£
boycotts, which, he states, under the Wagner Act have become a
punitive, coercive, uneconomic and monopolistic weapon that rides
roughshod over rights of public, employers, and in some cases, over
segments of labor.
Cites situation in electrical industry in which
secondary boycott has given one union practical monopoly of —
manufacture, distribution, and installation of electric products.
The electrical manufacturing industry—victimized for 12

secondary

States

again

boycotts—is

has

nized

message
Y the
State

its

indus-

Congress

condary
boycott.
The right to

R. Stafford Edwards

the

and

strike

% other tremendous powers guaran¬
teed labor by the Wagner Act ac¬
tually make any boycott a puni¬
tive, coercive, uneconomic and
monopolistic weapon with which

may' ride
the rights of the

organized

any

body

roughshod over
public, employers, and, in many
cases, over another segment of

labor itself.
The

secondary boycott is the same type of economic
force as mass picketing and the

organized

sit-down strike. It takes from the

•

public the right to make its
decisions

the

merits of

own
dis¬

pute and, indeed, even takes that

right from the group of
ployees directly concerned.
same

em¬

The so-called primary boycott is
accord with American ideals

and

principles but that distinction
applied to any kind of
•; secondary boycott
To permit a
secondary boycott as a method of
protecting wage rates and work¬
ing conditions is simply to say
that contrary to the Wagner Act,
one group will be given the
privi¬
lege-of deciding the wages and
working conditions of •: another
group.
Each group has that right
and privilege, including the right
cannot be

to strike.

concen¬

and will seek World Bank aid for

reconstruction needs.

to main¬

that

monopoly; The
employees who

Italy

He asserted

stabilize

cannot

He is

now.

Lira

meeting with Exports

imminent.

under the

City Bank of New York lists: (1) adjustment from buy¬
market; (2) correction of unbalanced inventories; I
(3) a shift from non-durable to durable goods; (4) downward [
movement in farm and food
prices; (5) reduction in unit cost of
gproduction;:and (6) ending the wage-price spiral.
Holds if
activity in durable goods is maintained no general depression
ers' to sellers'

need be feared.

will

have

ing the next
the

view

dealt

year

that

with

and

Further price softening expected.
If

foreign

silver continues to
the market in large vol¬
further softness in its price is

come on
ume

expected. According to a usually
well-informed source the H'andy
and

Harman

"official

price"

businessmen

looking into the

new

use

of its problems,
but
good spirit and enterprise,"
a precipitate
decline
in ' trade
and-i produc¬
tion. According to the
"Monthly
a

million

with
It

with

another

union

(Special to Thk Financial

occurred

at about two cents

Chronicle)

understood

to the

Blair, William H. Johnson, James
three
Koulbanis, Michael S. O'Brien,

shortages, rising costs
price controls. In many cases
low-priced
lines y almost
disap¬
peared from the market, and in¬
ferior or over-finished goods and

stocks

high-priced novelties

his decisions

out

the

expense

had purchasing

when the choice

tour^ic^nts

of silver

ounces

either

affiliate

with

their choice.

union

It
are

Act

unfair

employers who
prohibited under the Wagner
from

influencing

ployees in any

way

their

em¬

whatsoever,

from

these
<

subsided

prepare

changed conditions.

(Continued

168)

page

HERBERT H. BLIZZARD & CO.
the formation of

announce

(Special to

The

Financial

HESS, BLIZZARD & CO.

Chronicle)
incorporated

Members

imiiiHf

123 SOUTH BROAD

•

Herbert H. Blizzard

Elizabeth K. Scott

Vice-President

•

Ralph jB. Hendee
Vice-President

Vice-President 6 Treas,

Daniel J. Taylor

ANNOUNCING THE FORMATION OF

80 BROAD ST., NEW YORK

complete trading and investment business

President

- -

Arleigh P. Hess

Bittner, Edelmann

ST., PHILADELPHU 9

•PEnnypaocer 5-6161

conducting
:■

I———

Philadelphia Stock Exchange

Secretary

•

Henry B. Gurney, Jr.

Assistant Sect'y-Treas.

Co.
We

4, N. Y.

are

with

pleased to

announce

the association

of the following representatives

Telephone BOwling Green 9-2590 ~

Arthur L. Batten

Thomas J. Joycb

Y:y .y*y

Willum M. Hess

INVESTMENT SECURITIES

MURRAY C. BITTNER
HENRY

January 3,1947

EDELMANNr'

Announcing Change of Name
george k. baum &
are

pleased to

the installation of

announce

DIRECT PRIVATE WIRE
•1 •

,.4

v: ;

AA >

,'Y '-K

Y'V: .'/Y

:. ;

YY..

Y/Y:..;'YY rYV*

<;•:!

*> ?

'» << $

y-. k j

:;y

WARD & CO.

<z>

120

''i

BONDS

CORPORATE STOCKS AND BONDS

■

x*-

Y>^:.'•r-.,
^ '' ^

MUNICIPAL

1 v..

company, inc;

(formerly Baum, Bernheimer Company)

■>' »i*j* t

'«*> 'i

a v'

r *

''-"V

\'i

' \

V*'-♦

George K, Baum, President

Wayward H. (Pete) Hunter!

»*"'*

Broadway

Vice-President - Corporates

George J. McLiney
Vice President Municipals
Eldridge Robinson
Vice President Trading /
Chas. E, Lewis
ViCe President. Treasurer
Dorothy Smith, Secretary

.V^

NEW YORK CITY

Edw. O. Prothman

Sales

C. C. Jones

Sales

Ervvin H. Eisen

Sales

Russell Smith

Sales

fred w. fairman & co.
208
-

So.

CHICAGO

Salle

Tel; Randolph 4068

Kansas

ILLINOIS

Members

Chicago Stock Exchange

1016 Baltimore Avenue

Street

Chicago Board of Trade

Teletype CG 537

Telephones:

City 6, Missouri
Bell

Teletypes:

HArrison 2090

Municipal

385

HArrison 6432

Trading

472

for

Their

AND

Company.

ARLEIGH P. HESS

LOS ANGELES, CALIF.—Mal¬
colm Resnick is now with Wal-

Square.

throws

appeal

formerly partner^ Boenning & Co,

BOSTON, MASS.—Frederick X
Sears, Jr.; has become affiliated ston, Hoffman & Goodwin, 550
with Merrill Lynch,
Pierce, Fen- South Spring Street. He was pre¬
ner
&
Beane, • 10 Post Office viously with Edgerton, Wykoff &

by the

not

with

Retailers have not waited until

demand

power and

square

consumer

WitK Walstoii, Hoffman
;

(Special to Tin? Financial Chronicle)

them out of jobs because their
employer's market is throttled or
it forces them against their will

b^cwj|he of¬

The secondary boycott is unfair
employees who have exercised

Act..

umpire

staples.

to take or.

was

sub-stand¬

and

normal competitive

r.v$i

With Merrill Lynch Co.

Unfair to Employees

Wagner

Even so, sales did not suffer. Con¬
sumers

and

excess

to do

business, in which the

turned;

were

the

merchandise;

away

ard

ficial price today.

Leon F. Turynowicz, and Walter
F. Voner.
;.;
•
' '

public be¬

the rights guaranteed them

diamonds, jewelry and some food
products; in retail mark-downs,

area

is informed that it is possible to

buy 1,000,000

evi¬

and

be-t

Mathews Co., 53 State Street, have
added to their
staff Robert E.

MASS.Y-Edward

services of an employer who has
strictly obeyed the law, whose
employees have made the choice
given to them by law.: As any
monopoly does, it forces exorbi¬
tant prices on the public.

visible

especially on women's apparel,
where a problem is even during
Christmas; and in the
readjustment is general¬ reappearance of post-Christmas
ly under way is in retailing. From sales.. The overall problem now
the beginning of the war sellers', is to
adjust production again to
markets in consumers' goods have meet
consumer
preferences; to
prevailed.
During much of this provide as in the past lines for
time producers were hampered
by every pocketbook; to clear out of
One

seen

low the official price. The writer

it is denied the goods

The

Letter":

have

BOSTON,

union.

is unfair

cause

ended.

dence is in price declines in furs,

ounces

are

products manufactured by em¬
ployees who have exercised their
rights under the Wagner Act to
affiliate

has

era

and with less fear of

or r more

of identifying

members, this union boycotts all

they bought what was

Retailers and producers of con¬
sumers' goods now agree that this

terly has not been reflecting fully
the price depreciation. ;L a r g e
transactions

carefully organized and
boycott by one union to
maintain a complete nation-wide
monopoly on the manufacture*
distribution,
transportation
and
installation of electrical products.
the products made by its

"with

year

awareness

with

do without

offered.

are

lat¬

Six Join Mathews Staff

What has existed in the

Through the

dur-<$

expresses

executed

;

January issue of the "Monthly Bank Letter" of the National
City Bank of New York contains a rough schedule of problems that

materials Y

Weakness in Silver1

Wagner Act. ^

industry: fori twelve
is nothing more nor less

labels

The

and

fervently hope that this unfair
type of boycott will be made il¬
legal by the new Congress as
quickly as possible.
It is obviously restraint of trade
and the remedy could be found
in
the
injunction - procedures,
damages and penalties now in the
Clayton Act and by loss of rights

electrical
years
than

point

solution of
Italy's
1947 " economic financial
needs.:
Italy
expects
to
ratify
Fund Bank'agreements this month

boycott the President wishes
to give his blessing,
but they

the

here

seeking

entirely

seem

makes

mission

States.

all

forms

his

trated

this type boycott don't care what
or to what other type

upon

outlaw

United

the

similar

it is termed

however,

calls

aY complete

with

Lire

employers and
Import Board today; It is reported
have suffered for 12 years Under that a loan
from" that source is

applications..

that

Military

optimistic.

union to raid another

tain

; YY

However, he doesn't

they are put out of busi¬
ness altogether.
It is nothing else but a legal
racketeering method used by one

secondary
boycott is "an
..unjustifiable
Y practice"
in

try,

years

United

the

Allied

if they felt justified in doing
Their market is drastically re¬

duced

that

so.

rthe

The

of military

WASHINGTON, Jan. 8—(Spe¬
cial to the "Chronicle")—Premier
de Gasperi of Italy today expressed
his wish for agreement with the
United
Kingdom on redemption

even

the Union that

certain

President

World Bank aid.

❖-

recog¬
in
his

the

glad.that

redemption

Lire. Doubting Italy's ability to
stabilize Lira now, he is seeking

President, National Electrical Manufacturers Association
v

Preview of 1947 Problems
National

CHRONICLE

THE COMMERCIAL A-FINANCIAL

130

return bf
based

CARTER H.C0RBREY&CO.
Nationdl

Member,

New York 5,'

Recommendations and Literature *

Wholesale Distributors

-4

•
.

I'.'"'":

i''

Pacific Coast

—

-V

;

,477; to send interested parties the fallowing literature:

to*

Also
'

7-^''

■

Lackawanna RR.

—

Ne,w Jersey

situations.

DISTRI&Uf ION

Review of

conditions

affecting industry—Hirsch &
25 Broad

LOS ANGELES 14

CHICAGO 3

—

financial

Accessaries

Auto

business, and

4, ,N; Y.. /

New "York

*1.. 7

Nurin-Bush ShOe

C0./.56 B^dadWdy, New Ybrk 4

•

Street, New York 4, N. Y.

Canadian

Bonds

Wood,

—

We have

Analysis of

777' Showers'1141?,j :
Brothers Co.
v
.

;Vj

Common

••

;• •

7„..

-.-.4 7:x'f ,G;-';

Copy on request:-

Federal

& Co.,

abrpad—G.H.Walkfer
Co., 1 Wall Street, New York 5,

turhed frorn

Gas

Ralston Steel Car Co.
lar

—

Lerner & Co.* 10

Circu¬

—

Post Office

.-,44-;

Square; Boston 9,' Mass,

Grihhell
'

tforp^Besem^

Rockwell

Metals—Special re¬
California t Co., Ind.,
^Montgomery S t r p e t, vSan

Reynolds
port—First

research iterri
Manttfactdring Cd.

Also available is

Inc., 41 Broad Street, New

300

Calif.

Francisco 20,

N,'Y.

York 4,

Unterberg

Broadway, New York 6,

•

Corp.—

.—Goodbody & Co., 115 Broadway,
NeW York 6, N. Yv
7

■

T" '

Water

Memorandum^-J. G. White & Co.,
37 Wall Street, New York 5, N. Y.

Argo Oil Corporation—Descrip¬
tive circular—Seligman, Lubetkin 4

Brown, Jr., general partner in G.
H;
Walkerr;& Co.", feceiitly7re7
&

v"v-

—Comment^ by 4Tha t C h e- t7

Ccr.v

•

sis—Kugel, Stone & • CoM Inc., 20
Broad Street, New York 5, N. Y.

iii Great Britain

Devfelopments

Stone

Holding Cofp.—Analy¬

Amerex

Street, New York 5, N. Y/ 7
77:77-77|7
i. r
v ...
Wall

^ Co.i 61

Street, New York 4, N. Y;

25 Broad

pamphlet form
Gundy . & Co., " Inc.,

4'Bubiie National Barik & Trust

Co.—Analysis—C.

Co.—Memo4

Motors

randum—Hayden,

Year-eiid

—

Valuations

-s*—pPip

y7'.'
ACF-Brill

Michigan 4181
IA 255

CG 99

Dresser

Cd.7— Memo-

Co., ..225 East
St;^; Milwaukee 2, Wis.;

Ibetsiled

Co.l change Place, New York 5, N. Yi

650 S. Spring St

13S S. Li Salle SL
State 6S02

Industries

memorSnduriii—EdwSrd A. PurCell

i'k-P

"ftndurft—Loewi * &

opportunities
Co.j Infc., ,40 < Ex*i

market outlook and

---Luckhurst

.several mtefestina
*
'
'
>
.

VEasori

MARKET

—

& Co., 25 Broad Street

W. Pizzirii

;

.Analysis

—7.

UNDERWRITERS
SECONDARY

leaflet of

available is. a

News' Britfs

tltilities—Analysis-^

•

Haupt & Co., Ill Broadway,
New York 6, N. Y.

N/Y.

Vs.&< ij.;;rl———

v.y.7' ■
D. L. & W.

Northwest
Ira

•

Middle West

•'

thk firms mentioned will he pleased

It is understood that

6% at present quotatiohs,
71946 payments—F. - J

Young & Co., Inc., 52 Wall Street,

Dealer-Broker Investment

Association

of Securities Dealers

9. 1947

Also

available

are

reports, dn

R, Iloe & Co., Inc.—Circular—
circulars on
California
Pacific1 UtiUtleS' 4Cd.,
Tennessee Products and Wellmaii Adapis & Co., 231 South
Salld Harbor
Plywood' Corp.#
C.
J.
Street, Chicago 4, 111. 7
7
^
!4
Engineering.
Hendry Co, and Puget Sound Pulp
Earnings Comparison On 19 New
& Timber Co.
*
York
City /■ Banks—Comparative
Aspihook Corporation—^Gifculair
Hydraulic Press Manufacturing
figures—Laird, Bissell & Meeds,
ii'*
7* ■P'W*:.- "'4: >7-' ?7.
•: -"V
—Ward
Co.,J20 ' Broadway Co.—Detailed Analysis—Comstock
120 Broadway,* New York 5, N. Y.
Bock well Manufacturing C0.7New York 5, N. Y.
& Co., 231 South La Salle Street,
••';;,G7 77f77^4 44' 4-^47';7777774
i Also available are memoranda
Analysis—Steinpr;' Rouse & Cq.»
Guide to Investment Selections
Chicago 4, 111.
25
Broad Street, New York 4,
on W. L. Douglas Shoe Co.; Hart¬
Also available; are annlyses^ ol
1947—E. F. Hutton
& ; Co., 61
ford Empire; Lanova Corp.; Moi
N.Y.
Long
Bell
Lumber
Co,,. And
Broadway^ New York 6, NrY.
f hawk
Rubber; and Taylor WhartjMiller Manufacturing Co." 7 4
;7 7■'*■'4OP74 7
P'PP'Poii Iron & Steel; Purolator Prod^
Guide to the Perplexed—a chal¬
Scheniey jDistiliera Cb^ofatieu;
nets; Upson Corp.; Alabama Mills;
lenge to the barrage of pessimis¬
7 international
Detrola—Memo¬ —Brochure of articles they have
Diebdld,\Ine.
tic 4? state^^nts---hulletin^^w
randum—Buckley Brothers, 1420 been running in the Chroniclelist of suggested stocks for income
Walnut Street, Philadelphia 2, Pa. write to Mark Merit, in care of
Associates Investment Co.—An¬
Scheniey
Distillers Corporation,
and capital appreciation—Strp.u5s
Aiao available are memoranda
alysis—Albert McGann Securities
350 Fifth Avenue, New York 1,
Bros., 32 Broadway, New York 4,
Co., Inc., 131 West Washingtph on Gruen Watch CO. ailcL4 Bhilih *. Y.
'■ 7;7474:v7f7r7,
N. Y.
Carey Mfg Co. •, .4
/
? I
Avenue, South Bend, Ind.

Also available

are

•

CASWELL & CO.
Street

120 South La Salle

■

CHICAGO 3, ILL.
Tele. CG 1122

7;;

Phone Central 5690

•

■

'•

■

TRADING MARKETS

Nntrine
v/

.'.

Candy Co.

' Common

Prospectus on request

:
.

•

Common

15th

209 S. La Salle

Calendar;

Sugar

Boston

containing

edition,

annual

—

Circular

Stock Exchange

Greetings—Analysis

Nevy Year's
of

the

outlook—Vilas

market

5, N. Y.

■

Stocks—Detailed
field

S. La Salle Street,

about the growth
of economic .life in -America—In¬

York Security Dealers
Illinois Securities Dealers

New

Members

Board of Trade

Ass'n
Ass'n

Bldg., Chicago 4

Teletype CG 129
Direct

Wire

New

Central :
of

pt-i
& -Trust

Bank

Wall

Na¬

208

Co., PittsT

Street

Comprehensive

—

la Salle Street, Chi¬

111.

Detroit International Bridge Co.

Searchlight—Bro¬

discussion1,

Pfd.

South

cago 4,

containing

Consolidated

study and analysis in brochure
form—Fred y WA Fairihan & C6.^

burgh, Pa.

chure

Gas

Utility :"5^s
Electric

Public

and

'52

and

United Stateg* Government iSg-i
tional

York Officii

Syndicate, Roanoke Bldgj:J
Minneapolis, Minn.
,
,
;

eufltieS-^Brochure-Mellon

Telephone: Harrison 2075

k"'*"

♦Jessop Steel

^Prospectus Available on Request.

Alleges Glasgow libs greatest* diversification of man*
products in Europe,? add Serves 8s distributing centre for
'North and South Ireland, as Well as Scotlaiid.
>

—Bulletin

indicating

SCOTLAND—Jh addition to lall the economic prob¬
.

homogeneous.

free

tax

GLASCOW,

lems which face the United Kingdom as a whole, Scotland has some
'" '"
*
peculiar ,to 1^-^"";;11''
'' *
■ 4v
.7,'
self. Econom- the Board of Trade.
Mr. Oakley,
ica 11 y,
the although an Englishman by birth,
country is the has lived in Scotland about Thr.ee
opposite
of decades and is an authority on its

7v;7'■

Only

little

million

ants

Leading Manufacturer of D6or$ for the Building Industry:

Paul IT.Davis & Go.

Osgood Company

Exchanges
Chicago Board of Trade

;

,'4"7

INCORPORATED

Teletype CG 405

Indianapolis, Ind.
\ Rockford, 111.
Cleveland, Ohio

;

209

SO.

SALLE
.

Direct Private Wire to-J,

■

him the

"Chronicle"- obtained4the follow¬
ing

Glasgow and the Develop¬
Scotland.

ment Area of Southwest

Mi7 Oakley, incidentally* is 4 the
author of "an unusual book, "Sec¬

City," whose title denotes that

ond

Glasgow is the second largest city
in the British Empire.
Whether,

partly as a result of the industrial
remaining developments which fesulted from
population of the recent war, Birmingham will
Scotland; or overtake, Glasgow, remains to be
seen.
' '
■
4
some 4,000,000

Herbert M. Bratter

* *

ST., CHICAGO 4,
>

acro^ Ihc.Sputh.

Glasgow, Scotland's chief in¬
dustrial center, the writer recent¬
In

ILL.

Teletype CG 864

G. WHITE &

7 r
lives in-ahTndiistrial belt

persons,

Members Chicago Stock Exchange

Telephone Dearborn 1421

afea

trade and industry. From

the

sills, minton & company

Chicago 3

1 m o. s t as
large as Eng¬
land,
while

Convertible Preferred

Prospectus Available *

7 7 ;;

Established 1916

Scot¬

Members Principal Stock

Tel. Franklin 8622

live

land,

Common Stock

10 So. La Salle St.,

inhabit¬

rural

CO., New York

ly had,the advantage of an inter¬
view, with Mr1. C. A. Oakley of

Glasgow's liidustrlal History

■

7 Ak

toldJbiy Mr4 Daklfey, Glasgdw,

with all other districts;
Great Britain, has both advan-

in keeping

(Continued on page 170)

SINCE 1908HMMM

Fred.W. FairmanCo-I

We Maintain Active Markets ixt
" .1

sRecent

1 -74:4

Analyses

Request 7

Cent. Pub. Utility Corp.
.

CHASE CANDY COMPANY Common

Central Public

Utility
77

5y2's Of

Write

for

our

CHICAGO
Telephone

SALLE ST.

4, ILLINOIS
Randolph 4068

System

CHICAGO SO. SHORE & SO. BEND

RR Com.

Common

Stock

Common

Stock

Income 5y28, 1952

Chgo. No. Sh. & Milw.

47:''7';s Ry.?Co?7j';s?|7^

Standard Silica Corp.:

•

Common Stock

4-%,;°4:.-7v"

Brochure

Direct Privdte Wire to New

Bell

DEEP ROCK OIL CORP. Common

Merchants Distilling Corp.

>52'pM:'-

analyzing these Bonds.

208 SOUTH LA

;

York

CG 637

H. M.
;4"

Byllesby and Company?
Incorporated

777 135 So. La Salle Street,

Telephone
New York

State

8711

Philadelphia

buildings.

Pfd. 77

Wheeler

^ ? (V'i; ^ 7 "•777

i*-"

district;

over a

•Seismograph Service Corp.,Com.

of its

Snap-On Tools Corp., Com. v

Cksjow—Empire's Second City

Com.

•Wells-Gardner & Co.,

ufactured

vestors

STRAUSS BROS.

& Co., 231
Chicago 4, I1L

CO.—Circular—Adams

Progress-f-

Facts and figures

Members

jNew ;York Hanseatic

,11.
Trends: inf»American

&
.

47::S- ■: /4-. ■:.! ; By heBBeBt m. bBAtter 7
on Title Guarantee & Trust Co. W
Correspondent notes- that 80% of S tottish fMgulatiob is concfen*:
trated in Southern industrial belt, with most factories in Glasgow
Central Illinois Electric & Gas

MIDWEST

'^71777 tfMlP

tltica & MohaWk Cottoh Miils»
England
CO.
^tock^Analysis—Greene Inc. — Circular — Mohawk "Val¬
Co., 37 Wall Street,. New York ley investing Co./ Inc., 238 Gen¬
esee Street, Utica 2, N. Y.

cdrtifnon

Corp., 120 Broadway, New York
5, 'N. Yi < •
-,y
fciliili
Also available is a memorandum,

survey^—Dela-

Northern i New

A; Co.—Memo¬

-A.;. S. Campbell

ahcje

5, N. Y.

fdr the

randum

Delafield, 14 Wall Stfeet,

New York

■7v.,

--v.'

?'.?

Outlook for Fire Insur

MARKETS

United Brick & Tile C6»—Bul¬
Kinney Coastal Oil Co.—Mfemoletin—Doyle,
O'Connor
& Co.,
randum—Amos C. Siidler Ac Co.,
Inc., 135 South La Salle Street,
First
National Batik
Building,
Chicagd 3, UL
. 4 7
:
Denyfer, Colo,,t
,4
7.

—

Inc.,Sah i'rancised,

.Street,

Calif:"'

Hickey, 49 Wall Street, New York

NEW YORK

Railroad

Walter J. Connolly &

—

369 ,/Pine

Tele. CG 146

•

Co., 24 Federal Street, Boston 10$
tion; pertaining to the sugar indus¬ Mass.
try of the United States and The
world—Lambom & Co., 99 Wall
;
California pacific Utilities Co;--^
Street, New York 5, N. Y.
: :
Analysis—Walker's Manual,

Street-Chicago 4

Tel. Dearborh 6600

Mlaine

statistical data and other informa¬

WilliamA.FulIer&Co?
Members of Chicago

Lamhorn's

7774774!77777
/Lear Inc.

.:77'7'77

Chicago 3

FAROLL & COMPANY
■

Member

208

Teletype CG 273
Pittsburgh

Minneapolis

York

New

and other

Stock

203 S. La

So. La Salle St.
CHICAGO

Phone

Brailsford & Co.

Exchange

Principal Exchanges

Andover

1436

Tele.

Salle

Street

CHICAGO 4

4
CG

166

Tel.

State

9368

7
CG

{THE COMMERCIAL & FINANCIAL CHRONICLE

Illinois Brevities

Active Trading Markets in

For the first time since 1854, when Samuel Carson und

John ;T;

business association in LaSalle, 111., that grew into
■'Chicago's Carson Pirie Scott & Co., the pattern of ownership of the
Pirie

began

R. Hoe &

Loop department stores' outstanding stock was disclosed in connec¬
tion with the company's first public offering. -The -store also; an¬
nounced an expansion program1 expected to cost about $4,200,000..,

//■ / The

mon

the

f 19,990

outstanding

1,250,000

,»preferred: and

$6 3> "•'

are

11 common,:
are held by three distinct fam- *
/ Sly groups, with no Shareholder
owning as much as
10% -of;,
// -either class.
^ '
/j*. /••/ %'' /:/
shares, except

The

families

the

ceased Pirie brothers,

John

I$296,142,915,-■

■

farmers and try to
or

Circular

■

Request

■

★

—

ADAMS 6- CO.
231

SOUTH

SALLE

CHICAGO 4,
TELETYPE CO 361

STREET

ILLINOIS
STATS 0101

PHONE

t;,

preference

shares/will

and the

second

ence reduced.

■

>■.

interview

Indicate, he said, that earnings
increased
Jiave reached a "current peak."

—

Matthew

Pilchfer

Herbert Pettey

Vice-President—Hefbert

first

ca¬

and

discussing the recently-anfiounced Z annual
statements
of financing plari,: which Geofge A/
banks, Philip R. Clarke, President Ra^Whbd^^re^denti'. * said would
of
the
City National Bank & get under way as soon as "general
Trust Co. of Chicago, said "results market conditions justify." In.ad¬
to
this | change
of late were somewhat less.favor¬ dition
in the
able than in earlier months." They original £lan, th<» number of new
In

years

turning out presses in record volume.

Armour & Co. Wiljnot issue. any
additional shares of common*stock
in connection with its delayed Re¬

•;

v/'//;

Now booked
than two

persuade them

news¬

ten-year conserva¬

tion, programs.
;

country.

for more

printing presses

Hf...

The organization would

to sign five-

in the

•

§8.63% Zof thethe; preferred and
8.77%
of common.
.

Mid-South Securities Corp,

the late Andrew MacLeish, owns

B/PilcheJ-,

..iflg of families of descendants of

magazine

pacity

Illinois bankers will meet- Feb.
in Chicago to make, plans for
a new organization tb, sponsor
Statewide1 conservation program.

and

Association elected the following

manufacturer

and

from

/ i

&»

own

cf the preferred and 40.37% of the
Icoftimon. The third group, consist-.

/"President—Matthew

oldest

paper

business

the

$316,623,014

with

value

The Nashville Security fraderis

The
*

12,015,oetore, but tue

the year

climbed

'; ■.//://

000

officers for, the year 1947;

11,518,000

was

compared

dollar

the common. Families
of Robert L., Frederick H. anci the
late John W. Scott/own 40.22%

40.85%

NASHVILlE SECURITY TRADERS ASSOCIATION

our

exchange

shares,

L.,
preferred

Z of.. the

toward

the
1

three de¬
Samuel O.,

Gordon

and

41.06%

■

prog¬

goal, to become
a
midwest stock exchange for
^midwfest securities." Volume Of
ress

of 56 holders. All of

names

-the

11'' '

' ' ,r':r

•

1946 has shown *''definite

conii l;
registered in
\

Co., Inc.

-...

Class A and Common Stocks

/ Aeronca Aircraft Corp.

Wilson

Baltimore Transit Co. Pfd.

Rettejy, Equitable Securities Corp".

'//

•:■■■'. Secretary and Treasurer—Buford G. Wilson,: Jack M'. Bass & Co,
Directors—D.

Wileiy

Wiley,

Temple,-Thomas Hv'Temple Co.
.

prefer¬

Buford

Decker

Brothers, Inc., and Thomas H.
'

•

Mfg. Co. Com.

Howard Industries, Inc.

■;■//:'
Delegate—Patll O. Frederick, Commerce Union/Bank/
Alternate Delegate—Jo Gibson, Jr., Webster & Gibson.

NSTA

Burgess Battery Co. Com.
Chgo. Auro. & Elgin Ry. Units

•

'"Hydraulic Press Mfg. Co.
Old

Ben

Coal

Corporation

Long-Bell Lumber Company

Tftl-CITY PARTY

Beginning in Chicago on Jan. 28, the Bond Traders Club of Chi¬
WilftM Sykes, President of In^ / - Another hieat packer, Swift /
& Co., filed a registration staffed: cago, Bond " Tr aders Ciub oi
Kansps ;City, ahd the Twin City Bond
Jand Steel Co., has been named
ltteftt
covering * $50,000,000 of
Traders Club will hold their annudl wihter "dinners.'
Sor the 1947 Presidency of the
debenture issues, representing
Reservations for hotel in Chicago should.be made with LawrenCe
Chicago Association of Commerce.
new
financing of $31,250,000.
Jle will succeed Thomas B. Free¬
W[. Marr of E. H. Rollins & SOns; for dinner with Charles T. Matz of
Swift will
tetlrfe.$18,750,000;lit|
man, President of Butler Brothers.
■Urn
'-i-'-K :yi
liarrimah Ripley & Co.
-y
'
—
outstanding debentures and use
j •
#
.
the balance of the proceeds for/
1
Hotel and dinner reservations for Kansas City (dinner to be
State Street stores, which had
modernization and expansion.
held Jari. 30) should be madC. with John Latshaw' of
Harris, Upham
their best year on record, are

Miller

Manufacturing Co.

;

/Oil Exploration Co. Com.
Trailmobile Company

•

*Petailed analysis Cviiiltible

request

♦

COMSTOCK & CO.

•

/■■■■/'"///

im¬

for civic

plans

continuing

$25,Meanwhile, A. G.
Spalding & Bros., Inc., closed

:lts
the

last

-withdrawal from the retail
ness.

Appeals upheld

Chicago

busi¬

////:/■/,

after

The
the

plan

Lines,

of holdings.

activities

will

commerce

surface

■

The

Illinois

the

commission's

lines

■

hear¬

CHICAGO 4
231 So. La Salle St.

dinner in Minneapolis will be held

Jan. 31 and

reserva¬

/;•

tions for hotel and dinner Should be made" with Charles J, Rieger of

Jamieson^

Co.

A group will leave:Chicago ; in,
for Kansas

Feb. 1.

spepiaUJFHillman cars ,oti Jan. 29
to^ Chicago on Saturday,

City, and Minneapolis, returning

The

cost, which will include round trip rail and

room/, For rail and Pullman reservations, those planning; to attend
should contact

specialize

tractive issues

taining
own,

would

insure

^President

International

Har¬

publicly-owned

Transit Authority intends to is¬
in order to purchase the two
/establishments.
'
li/1
sue

Z '

BOOTH FISHERIES CORP.
Common

Bought—Sold—Quoted
*

Booth

Conv. 4% Preferred

Trading Markets

S'Z

rapidly. Prices were cut as
much as 49% in the Winter sales
order houses.
#

board

Chicago

■?

governors

Stock

Exchange,

—

t'yp"

• y

y.-'

SOLD
■

—

QUOTED

" ;/i' ;v '//SS/

y//-;

General
■■;

/ S />///

'':

Prospectus

■y';'/y/-'yy

upon request
•/:

:V ;

y ;

Oroville
.

Bottlers

Common.>

Incorporated

135 South La Salle

Minn. & Ontario Paper, Coin.

the
said

yy-

E. H. Rollins & Sons

Gaumont British Pictures

Ralph W. Davis, Chairman of
the

•

Fresnillo Co.

♦Prospectus oh Request

mail

*|§

big

Seismograph Servicd Corp.
Common

B0VGHT

Cinema Television

mand

Fisheries Corp.//
Common

Brown Co. Com. & Pfd.

Chicago's

our

with

Chicago

Abitibi P. & P. Co. Com. 6l Pfd.

way .'

exclusively.

120 South La Salle Street

Chicago

^Schumacher, economist, said proeduction was catching up with de¬

•

them

FLOYD D. CERF CO.

ready market for thb $90,000,000 in revenue bonds which

vester Co., said this resistance al¬
ready was building. Arnold C.

catalogs

serve

Correspondence invited.

city.

Kuppenheirrier & Co., warned
that prices may advance to the
ipoint of creating real sales resist¬
ance, while John L. McCaffrey,

department

compete

but

the elevated

and

increases

the

under¬

such

3n the first quarter.

Cahn, Chairman of

for their clients. Main¬

retail

Bertram J.

exclusively

writing- and distribution of securities,
providing investment dealers with at¬

dealers,

Edwan| H. Welch,* Sincere & Cd., Chicago,

Guest fee for the dinners is $7.50 for each

Serving Investment Dealers

Pullman/

parlor car from Minneapolis to Chicago and dinner leaving Chicago
on Jan. 29, also
guest fee at Kansas City and Minneapolis, will be

Railways' petition for increased $
fares, It has been contended that

said there were only a
Yew portents of prices weakening
*

Dearborn 1501

Teletype CG 955

Chicago

$71,78 each, for two in compartment; $75.74 each for two in drawing

affecting

ings of the petitions of both the/

staff,

food

pur¬

appeal by junior securi¬

the proposed payoff

said markets
ultimately must be found to ab¬
sorb the "unparalleled" produc¬
tive capacity of the United States.
The
Federal
Reserve
Bank of
-World

Federal j udge's

ties holders who were left out of

were

area

chase the Chicago Surface

general

Circuit Court of

^proval of the city's plan to

prices and
plentiful in the
business began
talking about the new year. S. M.
Bruce, of* the United Nations'
Views

^production

•

week when the

involved in its

moves

unification

plan passed another hurdle last

Street store in one of

State

transit

& Co.

<000,000.
.

///////

Chicago's

provements that by 1950 are ex/pected to cost more than

AjCAUXNA«I>COMEANY

Dredging

530

,',\i
> r •'
Central
Direct wires to our offices in

Incorpoirhted

Rhodesian Anglo American

Chicago

New York

Boston

1 'V y;;
Street

CHICAGO 3
7540

principal financial centers

MiltiraukdP

Minneapolis

Omaha

Rhodesia Broken Hills
Rhodesian Selection Trust

FOUNDED 1913

San Francisco Mines

(Mexico)

/ Greiss Fleger Com.

^Morris paper milLs

THOMSON&

Scophony, Ltd.

M5KINN0N

Vicana. Sugar Co. 6/55

chica60 south shore & south bend,

Vicana Sugar Co., Common

*Prospectus available upon request

united

Steep Rock Iron Mines

brick

Nu Enamel Com.

| Industrial Brownhoist
Common

industrial brown

.•securities

Commodities

''231 So. La Salle St.

Chicago 4 '
.

Branches in 35 Cities

Hearst Class A

Long Bell Lumber Co»

/fj

,/'/

Members New York Stock Exchange and other
principal exchanges

Common

ZIPPSPI & COMPANY
Specialists

208

Foreign

Securities

Chicago 4, Illinois
CG 451

•

INCORPORATED

135 SOUTH LA

S. La Salle Street

Randolph 4696

DOYLE, O'CONNOR & CO.

,V r ' - .CHICAGO
-Telephone: Dearborn 0161 >

•///';v/

SALLE STREET

3. ILLINOIS
'

STRAUS & BLOSSER
Itembers

New

York

Stock

135 South La Salle St.,

Teletype: CG 1200

Exchange

Members Chicago Stock Exchange
ilssociafe Member New York Curb

Tel

ANDover 5700

Chicago 3, 111.

Tele

CG 650-651

THE COMMERCIAL & FINANCIAL CHRONICLE

132

most

Thursday, January 9, 1947

immeasurably for consumer

purchases bf~ all sorts during the
coming year, they reveal. Such re¬
flections

these

The United-Nations and

lead only to

can

World Peace

bullish

conclusions, they believe.
Though the hotels may be cry¬
ing about their high costs, never¬
theless, by all the statistics, they
are doing a very big business, the
analysts continue. The situation of
the present time cannot be com¬
pared to the conditions which ex¬
isted in the twenties, they say. In
fact, it is never accurate or safe,
they point out, to compare the
,

Bullishness,: according to

market analysts, can .be
said not only to be present but actually to be growing very strong
among investors in real estate securities. In late weeks particularly,
they point out, any uncertainty over the future that may have been felt
some

stock

to give way in very marked

j in that section of the market has tended

swelling confidence in the soundness really not only of
situation but also^
of business condtions
generally. houses will be 'falling off very
Careful analysis and a sense of soon. No new structures are being

fashion to

the real

estate

[perspective, they declare, have
[combined to dispel much of the
fear, bordering on panic—an un¬
fear, it Would appear,

reasonable

(in the light of subsequent develop[ments—that was present in real
estate, as in other sections of the
I market, in the early fall. i . ; ; ,
If

market

the

much

was

too

constructed

matter of
fact, it will be a long time, they
think, before any of them can go
up. Meanwhile, the population of
the city continues to grow, they

and,

What is triie of New York is

say.

think.

Each

should

studied

peace.

governments

sovereign

conditions
and analyzed

set

support it, and points out organization now has nonXr
Sees need for UN to advance from a loose

powers.

association of

sovereign states to

separately, in their opinion.

Attacks

Moreover, the news coming to
as
we go to
press suggests
thai hotel earnings are likely to
show a further improvement over

a body having sovereign powers.
irresponsibility, tariffs, and other international

discriminations.

national

as true of many
communities in other parts of the
*

sembly

meeting here tonight in California, the General As¬
United Nations is on the
verge of closing its first

are

of the

annual session

.
present high levels. We refer to
in the Washington press advices indi¬ on the other
side // of f<- the
commercial buildings of New York
cating that the Office of Tempo¬
Continent
in
is also terrific—and terrific is the
rary Controls has ordered removal
New York
upward to levels more in keeping word—they say. An example of of ceilings on rents for transient
For
almost
[with trade possibilities. Some de¬ what is happening is seen, they hotels and motor courts effective two months,
cline in prices may have
been point out, in the fact that a large Feb. 15. The same source quoted
215 Delegates,
[good for the market but be that New York bank plans to take over OTC Administrator Fleming as 131 .Alternate
for its own use 10 floors additional
as it may, it is unrealistic to think
stating that controls would be re¬
Delegates, and
that prices must continue to fall to the space it already occupies in
tained, however, on rooms avail¬
299 % Advisers
any longer, they argue;-A modest a large building it owns on lower able to weekly or monthly guests.
representing
degree of fright is probably actu¬ Broadway. The present tenants

[high before, the analysts reason,
jit is much too low now. Security
[values must, they say, bound back

<S>

Demand for office spa^e

ally normal in the average mar-

probably find it
to obtain other
quarters, either, they think. If
unoccupied offices were really
as plentiful, vacancies would be no¬

quently, it never does take much
to start a stampede of selling. It is
not just the market in real estate

[securities but the stock market
(a whole which has already hit
rock

and

bottom

with/real

can

[justification look forward to bet¬
" /
of view of the
investor in real estate securities,
there is much in the market situa¬
ter

days,

they think.

the point

From

will

conse¬ premises

|ket, they point out,, and,

too

none

ticeable

Thatcher G. Jones With

easy

third

the

now

class

It is
ask

Thatcher C. Jones has be¬

come

i associated with,: Josephthal

that is, Hhe' blcter,
less modern, structures which al¬
ways feel the pinch of less busi¬
ness first, they declare.....
;
bull dings,

ourselves, coldbloodedly and

have battled
and

Three

struggled

fullest blaze of

Dr.

the

momentum

objectively, three questions:

together, in the

Josepthat & Company

solemn

life-story of mankind. We must

nations

must vacate these

course

„

representing 410 publications from
38
different
countries, and 118
radio
correspondents
from
18
countries, with the United Nations*
own
radio
broadcasting
every
meeting in five official languages
and often in nine other languages;

„

who of

p
\

Warns, however, that as mechanism or "method of co-S
operation," United Nations is powerless unless peoples and their

ing

they

another,

with

Chief of the Washington Office of United Nations

Former League of Nations Official and United Nations
spokesman
reviews accomplishments of recent General
Assembly meeting, and • /
concludes results give promise of providing mechanism for enforc-

conditions and trends of

period

By ARTHUR SWEETSER*

hand

probably also just

country, they think also.

business
one

•*«

publicity, , to
Arthur Sweetser
try to advance \
the peoples of the world along the
long and hard road to peace.
A
blistering
spot-light
has
been
upon them; over 800 journalists

Questions

First, what specifically has this
great
assemblage
accomplished
out of its long labors?

Second, how much

does

reason

it give us t6 hope for continued
peace and the

prevention of war?
Third, what can we ourselves

individually do to improve those
chances?

Earnings on commercial build¬
ings as on apartment houses must
tion to warrant optimism, the an¬ remain
high for a long time yet,
alysts
feel. For instance,: they they believe. Competition from
point out, demand for apartments new construction, for one thing,
in existing buildings in New York
must be very limited for the fol¬
City must continue strong for at lowing three very good reasons,
[least three to five years more. In
they argue, (1) the fact tjhaf pres¬
[fact, there is nothing in the New ent buildings, occupy the best ,lor
[York real estate scene, they* de- cations, (2) the fact that large
Iciare, • to justify any 'fearthat tenants .especially4hate to' -move

*An address by Mr. Sweetser

before the Institute of World Af¬

These are the greatest questions
our times. They go to the root

fairs, Riverside, Cal., Dec. 11, 1946.

(Continued

152)

on page

The Bank for International

[earnings

apartment

present

after
some

Settlements Revived

becoming 7 establifhetfr "at
address, and (3) the fact5 that

construction

costs

tures must make

(Special to the "Chronicle")
Dr.

present buildings

Correspondent calls attention to first meeting of BIS directors since
beginning of war and a reported loan of the bank to Finland as
indicating institution does not contemplate liquidation. Holds Bretton Woods resolution favoring bank's liquidation arose from belief
institution was Axis-controlled, and, in view of Allied
victory, this
opposition has died out. Sees opportunity for the bank to conduct

Co., 120 Broadway, New York
City, members of the New York

by compari¬
Stock Exchange. Mr. Jones Was
Besides, general business ac¬
tivity will 'continue at - a brisk formerly in charge of the New
York office of W. H. Bell & Co.,
pace for many more years, too,
Inc. Prior thereto he Was with
they are sure. The heavy indus¬
Lehman Bros, and was directing
tries have not yet got their pro¬
economist for National Securities
duction rolling as it must to'take
& Research, Corp.
,
^ ,
care of the world demand for their
V/'.
products, they say. Such building
construction as there is, when it
Francis V. Nixon Adds
does actually get under way, must
(Special to The Financial Chronicle)
extremely valuable

son.

REAL ESTATE

SECURITIES

•J

SHASKAN & CO.
Mombert Now York Slock

stimulate business all around, too,

Mtmberi Now

they point out. At least one large

Exchango >
York Curb Exchango
Dlgby 4-4950

40 EXCHANGE PL., N X
,

Boll Toktypo

finance company

NY 1-953

LOS

ANGELES, CALIF.—Fran¬
cis V. Nixon & Co., 697 South Hill

also is known to Street,

have

John

added

preparing to expand credit al¬ Gardner to their staff.

operations not within

Hotels

Christmas
held

since

the

board

directors

meeting at Basle, the first
the outbreak of the war.

according

California & New York

2,000,000

tion.

Real Estate Issues

>*" •'•- v

;

.t'-V-R

Seiigman, Lubetkin & Co.

155

V-:-*:

EXbrook 8515

Broad Street, New York 4

does

into

not

ternational

'52

Bankers Bldg., Inc.—Chicago
3-5s

'60

Roosevelt
v.-;

Hotel,
St.

Gov.

Common
■

•

Center 4s,

Fuller Bldg.

Bldg.

Louis

Wall

Film

W.S.

Wacker Wells

National Hotel Cuba 6s, 1959

Broadway & 41st St. 41/2S, 1954
Court & Remsen St. 3^8, 1950

York

W.S.—New

matter how small a

•

Valiquet & Co.

passed

Bldg. 2»/2s, 1957 WS

Windcmere-92nd St. 3s,

Hotel Waldorf Astoria Common

ton

Allied

war.

The

of Bret-

men

Woods wanted

presumably to
make a gesture dissociating them¬
selves entirely from the Bank for
Beyond doubt, in 1944 that at¬
was

was

not unreasonable. The

still on,

and it

not

war

pleasing thought for Allied Gov¬

for

after

this

the

war.

resolution

The ernments and their
was

there

existed

(Continued

was

79
..

East 42nd St. 3s,

1946

on page

155)

for

Realty 5s, 1949 WS

80 Broad
500

1956 WS

St. Bldg. 4s,

5th Ave. 4s,

1956 WS

1961 WS

HELP WANTED

•

3 POSITIONS WANTED

OTHER CLASSIFIED

Tel. BArclay 7-4880

SEE INSIDE BACK COVER

New York

7, N.Y.

Teletype NY 1-588

experts that

Switzerland

Amott,Baker & Co.
150 Broadway

Central 4402

*»>•.

with the Axis Powers before and

unanimous titude

W§

4'/2s, 1951 WS

Incorporated

CHICAGO

*--*r

Beaver St.

1952 WS

Lincoln Bldg. 5J/zS, 1963

the

International Settlements.
f

reason

Westinghouse Bldg. Part. Ctfs. CBI

1949

135 So. La Salle St.

Settlements

Pittsburgh Hotels Common

2>/2s, 4949 WS

Clinton 2s,

Grant

;

Myles Standish Co. Boston

CG-81

was

OFFERINGS WANTED
Broadway-Trinity PL 4Y2st 1963 WS

Prince & Lafayette Streets
5s

reason

countries, owing to its association

partly Jhat the experts of Bretton

Real Estate Securities

But the main

liquida¬ during the

Yet. in 1944 the Bretton Woods

Settlements

HAnover 2-2100

going

ous.

tion of the Bank for International

Uembers New York Security Dealers Association

Montgomery St., San Francisco 4

Tele. SF61&62

es¬

International

resolution in favor of the liquida¬

Incorporated

seems

;

Conference

J S. Strauss & Co.

small, but it

Settlements

scale.
i.'*r

the

The unpopoularity of the Bank for In¬

For, if that were its intention,

ness,

^Prospectus upon request
r

credit

it would not undertake new busi¬

Universal Camera Corp.
i'-'V";-"1'-i'-

Swiss, francs.

contemplate

^Hilton Hotels Corporation

that, with the

tablishment

indicate that the Bank for In¬

ternational

Foundation Company

Woods assumed

Monetary Fund and the Interna¬
Helsingfors tional Bank for Reconstruction
report, the Bank of Finland has and Development, the Basle in¬
just obtained from the Bank for stitution would become superflu¬
And

transaction is

Statler, Inc.

pf Bretton Woods institutions,

scope

International Settlements

Markets:

BASLE, SWITZERLAND.—It seems that the Bank for Interna¬
tional Settlements, which was moribund during the
war, is coming,
to
life
again./ Shortly
before^
—

Commodore Hotel, Inc.
Firm Trading

*'r

Jones

struc¬

new

•'/

Volume 165

.'''i

V■■

Number 4558

vf-Vf,v/////SfV..»/""'ui■
& FINANCIAL CHRONICLE

THE COMMERCIAL

terials to produce, a condition

Un-Curtaining the Uncertainties
SSfj'ff

and, therefore, will be will¬
ing to grant moderate concessions
to avoid prolonged strikes. Work/
ers, realizing that their bargaining
power has been considerably re*
year;

By JOHN E. LOSHAR

;j.

.Market observer, listing bullish and bearish business
influences,']
.'.concludes that they constitute a
"stand-off,"excepting for the;'/
crucial labor factor.
As he considers the outlook here
duced, if not by actual losses, at
hopeful,
-Mr. Loshar anticipates a higher stock market.
\ least by the lack of conclusive
A"
V'■.:/,;//' //>/, '■/.
Any attempt to forecast future
•

////
an

analysis of bullish

// ■/• •

;.y*

market action must be based

and bearish factors.

further

If the former predominate,

recovery is probable; the<S>i converse, of course, being
equally thinking management and shrewd
true.
It is well to bear in
mind, labor

however,

that the soundest of
prognostications may be upset not
/ only by the usual unforeseen con¬

tingencies, but
jfactors

also

technical

of the market.

Hence

first

bullish elements

that

did not exist in many plants last

>■

summarize

the

follows:

may

insignificant,

appear

the indicated
figure of $1-35 bil¬
lions wouid be a new
high.
2.

favors

Employment, too, is setting

conservative

controls

On the assumption
that such legislation is passed, the

number

and

depend

duration

the

management

and

worker.:

Management

the

time excess;

individual

the

has

;

JEFFERSON CITY,

Merritt &
branch

the

under

Associated

with

will

the

active business.; As

charge

branch.

the

firm

Edward,J.

President; Gene Mako,

Bourbeau,

Vice-President, and S. R. Miller,
Vice-President.

Formation of the firm

million

workers

..employed.
3. With
of

pear

war¬

profits taxation—ap¬

to be low in relation to earn¬

With F. L. Putnam & Co.
(Special to The

Financial

Wagner is

Inc., / 77

burgh &

with W. C. Thorn-

now

Co., 18 East Fourth St.

rec-

gainfully

building, this type of

construc¬
tion should show at least a
30%

increase

1946.

over

4. Retail sales should
approximate
the record volume of
1946, with
the
expected
slump in / soft

goods

being largely overcome
by maintained demand in hard
lines.

Production of

and

cars

trucks in 1947 should exceed
by
the 3% million units of

50%

last year.

A levelling-off of in¬
flated prices, in lieu of
causing
a
recession, might eliminate
the present trend of
goods being "priced out of the market"

and.

actually' stimulate

con¬

sumption.
On the other

ing

hand, the follow¬

appear to be

the, most impor¬

tant bearish factors:

1. Although
now

major labor crisis
unlikely, I it is
a
possibility, and

appears

nevertheless

labor turmoil may
consequently
be the main
stumbling block
in the path of
recovery. Claims

for retroactive

portal-to-portal

have reached alarming pro¬
portions.
Almost all observers

pay

still

fear
f

another

strikes in the

near

round

years;

the trim white liners of

Its business of

duction down to 135
by the end
erf the year.

the

United

Fleet

carrying

Fruit Company's Great White

have

building

been

serving

the

materials/ railway

new'

2. The;

abnormally' high

tories

being

now

cars, and

inven-

carried

Caribbean,

steamers
vessels

/ peak

prices should result both
substantial markdowns in

[

stock

and

cutbacks

other merchandise/to Latin America and

bringing back 'bananas; coffee;
tropical

cacao

the

sea-going personnel have

ariother

year of bumper farm
(where
already
some
agricultural prices are at 1945
levels), is expected to drive the

crops

;
J

;

BLS

commodity

price
v

3. The

number

cause

0\.

much

bankruptcies and
especially among

publicized

higher property levies

-/■

hungry world.

a
''i*

-cj.1

gone

Ci\V.

United

■

under -way,

with' six ofthese;

already in service between New Orleans

....

all out in the

-s.v%A

•-!

/">Vn,r.

9,200,000 through the Port; of Mobile.

serv¬

' 1t' lV

xt'

Fruit

operated

of its Own

ships

104 vessels. More
were

than

now move annu¬

ally through the Port of New Orleans and

its;

round fruit movement fans out across the

to Seattle

country

the west, New York and Boston on

Montreal

the east,

lost by enemy action:

over

This. year*

agents for the War Shipping Administration,

score

1$ fully refrigerated

and Los Angeles.

ice of their country, During* World War n,
acting

and Winnipeg in the north, and

all intermediate markets.

and 275 of its officers and men gave their lives.

Since V-J Day, United Fruit has been engaged in

With fine steamers, good acres and willing

rehabilitating its tropical properties, its fleet and

United Fruit

Another

income

Southern

tax : reductions may be more
than offset by appreciably

;
i v

greater

newly established postwar en¬
terprises, and increased unem¬
ployment would naturally follOW,
4. The

liquidations,

resulting stiff competition

would, in turn,

index

down below 110 before the end
of the third quarter.

Oyer 10,700,000 stems of bananas
In two World Wars the United Fruit fleet and

structure

now

crops.

presently booked. This,
together with the pressure on
price

•

program

other :

and

any

orders

whole

shipbuilding

equipment/

'»

helping feed
t

Federal Reserve Index of Pro¬

^OR nearly 50

■

future which

^(together with other poten¬
tial
factors)
may
bring 'the

industries,

industrial

the

series

development.

ready

its

serves

part

has

helped

supplying

■■

finance

others

with

hands,

the Americas.

by Equitable Securities Corporation

Equitable

many

featuring
Southern

capital

funds.

government."

]

forced

by the rising costs of municipal

Labor the Crux

the

above-cited

factors

;

/
on

each side of the market
appear to
■counterbalance each other, and

;
-

]? result in

a "locked verdict," it
apthat the crucial determinant
of the future course of prices will

NASHVILLE
DAL

LAS

KNOXVILLE
BIRMINGHAM

pears

NEW ORLEANS

-/be the development of the labor
.

situation.

Although

NEW

EQUITABLE
BR OWN LEE O. CURREY,

•

;•

f /

radical

322 UNION

anti-labor

legislation is favored both lay

un-.

YORK

HARTFORD
GREENSBORO

Securities Corporation

STREET, NASHVILLE 3/TENN.

PRESIDENT

Chronicle)

CINCINNATI, OHIO—Robert L.

Grant has become connected with

residential

;

Thomburgh

mass.— Eugene

ings/a higher market may be ex¬ F. L. Putnam & Co.,
Franklin Street. ////'.
pected.

ma-

With W. C.

;

Chronicle)

.(Special to The

boston;

practical elimination

controls

pre¬

Chronicle" of Dec. 26th.

the

all

are

was

viously reported in the "Financial

excluding those engaged
agriculture, a total of 49

the

Other offi¬

are

ords:

;

asso¬

Bourbeau

Co., 510 South Spring Street

cers

also associated.

were

become

Edward

Long Beach

McCarthy,

Schubert

has

Lower

with

Vice-President

office will be Oscar H. Bark-

lage,: Alfred

ciated

Peter

management

Picotte.

new

liam

Co., Inc. has opened a
the Jefferson Building

present stock prices—particularly

|
now

1946,

in view of the termination of

strikes

attitude

of Edward Bourbeau Co. f
LOS ANGELES, CALIF.—Wil^MO.—King

Linhardt, Robert
Charles L. Propst,
flexible about accepting moderate Monroe
M.
Schubert,
Earl / R.
concessions, and go back to work. Schutz, and Galen B. Vandament.
Mr. Picotte was previously local
Hence the' favorable labor out¬
Manager of O. H, Wibbing & Co.
look seems to balance the above- of
St.
Louis, with which .Mr.
cited factors toward anticipation McCarthy, Mr. Propst, and Mr.
victories

of continued

labor unions.

will

.1. National income is
expected to
v
rise almost 2% this
year. While
this

leaders, its inherent dangers
are too
widely recognized by the
Congress.
Consensus, therefore,

William A. Lower V.-P.

King Merritt & Co. Opens
Branch in Jefferson City

■

CHATTANOOGA

THE COMMERCIAL &

134

directly served and in territories
served by connecting affiliated
carriers.
The importance of this
latter development during the past
20 years is obvious from the fact
'that agricultural products in thh
years prior to the incidence of war!
distortions

Texas arid Pacific
As

Common

minority situation with interesting

speculative potentialities

were

dividend payments were re¬
sumed with a distribution of $1
share

1942

amount

this

and

same

paid in each of the

was

next two years.

dend

In 1945 the divi¬
to $2.50 and
the company paid out $4.
increased

was

last year
The

Texas

Pacific

sub¬

sidiary of Missouri Pacific which

accounting con¬

common

all

Lave been

number of elements

of basic strength apparent
Texas & Pacific situation

in the
over

period of years. For one thing,
through a combination of retire¬
ments and

lien

the

refunding of the junior

has been able
to improve its debt position ma¬
company

terially.
down
around
sents

ten

Fixed

charges

permanent nature..
road

The

now

benefited

also

ma¬

terially from the opening up and
intensive development of new ag¬

repre¬

in the territory

ricultural areas

than 30% from

further debt progress

distinct

possibility.

common

with

other

roads

operating in the territory Texas &
Pacific

ment in the

means

employment at!the highest possible level was made public on

ydio feel that earnings of such
proportions would justify even
than were paid
.

last year.

enjoyed

particularly

pronounced bulge in traffic and
revenues
during the initial stage
of the oil development and a cor¬

respondingly

contraction

sharp

Department of Justice Accuses 15 Companies
of Violations of Antitrust Laws
Justice obtained three

3V2s, 1961-1980

Arden Farms

indictments charging violations

of the Sher- :

President

Chamber

The

the

;;

which represents
Chamber's first

report,

the International

postwar

investigation "of. world
conditions, is the
; study
of: several

employment
result v of
a

months, duration made by a com¬
ent countries headed by

President
of .$ the
.JCorporation,
of

Hoffman,

'•Studebakers!

:South

Bendj^Ipd.

Recommendations
W.

fered

Aldrich

rather

sion."

"as
than

urged that each

was

for

Consolidated
Dearborn

Corp.

for

action

national group composing the Interna-'
in concrete terms the application Of

tional Chamber should work out
the

principles contained in these .recommendations tp the situation jri
and should then "make precise recommendations for

its own country,

action to its

government."
■

(Continued on page 160)

The New Year
"Business Btdletin'* of the LdSoUe Exterisiori
Correspondence Institution, Chicago

(From <the

University',

will be determined by the net results of
Industrial production "fairly steady at fe Mgh
level.. Consumer buying and business volume- higher than last
r
year and close to the peak. Some dominant factors jn the new year.
Business .enters the new year with the rate of activity holding
quite steady, at a rPte just a Ijttle .higher than it was a year ago;
Business trends this year
many cross

currents.

against ' a
difficulties during the past year.
under way Feb.. f7, the Justice
Factories are well equipped to go
in
Department alleges that the Elec¬ ahead and to turn out large quan¬
manufacturing or the export busi¬
trical Apparatus Export. Associa¬
tities of. goods which consumers
ness, all of which are scheduled
tion brganizedf by Westinghouse
will be able to buy and which
to be heard in New York South¬
and General Electric, since it has
ern District Federal Court com¬
they have so far been willing to
entered into an agreement with
purchase " even at higher, prices.
mencing within the next two
the INCA
(International Notifi¬
The possibilities for further prog¬
months.
cation and jCompensation Agree-f
ress
are
excellent, if the many
While no- decision' is known to
ment) is acting in violation of the
aspects; of our economic system
have been made yet regarding
Webb-Pomerene Act which, true*
are allowed to. adjust themselves
possible anti-trust action the De¬ permits combines for the promo¬
into proper balance and then are
partment : of; Justice; may .take tion of American trade in foreign
maintained that Way.
against certain New York under¬ countries but which, according to
writing houses, an official of the •the Justice Department^ does not
Production Up—Sales Up More
Department said he thought an
permit combinations with cartels
The movement of trade and in¬
important announcement concern¬ in other countries for the purpose
dustry during 1946 was in the di¬
ing this matter could .be expected of suppressing competition, fixing
rection that was
anticipated^
within the. next month or six

Webb-Pomerene

Act,

of 15 companies engaged

York

Stock

and

Exchange

other

leading Security and Commodity Exchs.

120
231

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

is still

The Justice Department isr in¬

the

NeW

Jury

push the inquiry, he revealed,

criminal suit , against

stituting

MEMBERS

Grand

voting all of five days a week to

Ernst&Co.
LaSalle St., Chicago 4, 111.

1st Mtg "A" 4s 1993

First Mortgage
c'

Properties

Bond on Main Line
of Strategic Nature

Priced to yield better than
V.
■';[} ■' >. %
;
. \
•*

Analysis.

Carboloy

violation

Company, alleging
Sherman Act

the

through the illegal pooling of pat¬
ents and the fixing of unreason¬

prices and allocating business.
In another civil suit, a Sherman
Act i? violation - case • involving an
interpretation of the Webb-Pom¬
erene Act, scheduled to be taken
up on March 3,: the Justice De¬
partment charges the United States
Alkali Export Association and the
California; Alkali Export Associa¬

non-members j n the

United States

every

yyork stoppage, was

ingly rapid

surpris¬

and vigorous.

highjest
leyei'rever i reached--in 'peacetime
and close to.7^% higher>than the

'FRISCO

has been

average

SEABOARD

DENVER

at the

months

of the five prewar years.

Enormous

sumers

demand

from' con¬

and large amounts of pur¬

the
stimulators of the high, levels. in
j production and in trade.
Consumers have been buying from 20
chasing by business have been

(

GUARANTEED

RAILROAD STOCKS-BONDS

2S Broad Street

New York 4, N. Y.

Telephone BOwling Green 9-6400
Teletype NY 1-1063

few

demand

ing, although it can probably not
be maintained at such a high level

indefinitely.

1947

Dominant Factors in
When

tempt

look ahead in an at¬

foresee the course of
this year we can

business during

rely

the usual methods of ecomuch greater
time since 194©

nomic analysis to a

extent than at any
the

when
to

have

war

over

ence

conditions

began

the predominating influ-t

all

business trends.
going to be

These trends are now

level of prosperity

can

be main-f

tained.
Some trends were

becoming in*

any

This

but the many obstacles
determined to an even greater
(which included shortages of ma¬
extent than they have during th^
terials, reduced output per manyear £ by
the relationship
hourof work> and extended work past
among costs, prices, and demand.
stoppages in - ma j or industries)
If these! can be kept in proper
have prevented the advance from
balance so that the income of
becoming as great as productive
business will be large enough to
capacity made possible. In many
cover
all costs with a suitable
significant respects, however, the
tion, the two composed of 12 com¬ achievements a were ; remarkably margin to conserve capital and
provide adequate profits, a high
panies altogether, with keeping significant as the rebound from
year ago;

r
ably high prices on tungsten car¬ from exporting to territories al¬
Excellent indicators which show
bides; used for tipping the hard located to members and foreign
the4 current
situation best are
edges of tools.
The Department companies engaged in the same
those of business volume and in¬
contends there should be more
dustrial
production. Both have
business from exporting to the
competition in the field.
This
been. rising quite : steadily; from
United States.
«
•
case will ..come up on Jan. 21.
the low points of the year; an,d
have held their gains. / Both are
D'."'-,-;.
T'
higher than they;were a year ago
and production is coming, more
Offerings wanted in all OLD ISSUES of the
nearly in balance., with. business
volume. ' Production for sevetal

;/■

Request

••

far greater than
previous peacetime year.
has so far shown
significant signs of slachen-»

stores have been

DL&W—Lackawanna RR N J

Many Conflicting Tendencies

investigating suspected violations
of the anti-trust laws among the
underwriting group, in fact,! de¬

Cons. "A" 5s, 1927

—r—■

weeks. : The

Chicago Railways

Hoffman

Paul

discus¬

Universal Match

of-,

were

further

! basis

Common & Preferred

of differ-Paul G.

mittee of businessmen

and of jthe Webb-Pomerene Act, Grand Jury Is still investigat¬
ing activities of underwriting £rms. Cases against, those indicted
scheduled to commence in New York Southern District Federal ,
Court within the next two months.
Substahtial progress towardmain^ ;
^
\^
Even after allows||
The New. York office of the Anti-Trust Division of the Depart¬ taining a high level of production ceding years.
ance is made for higher prices, the
ment of Justice has obtained three indictments, charging violators and employm ent has been made
of the Sherman Act and of the <S>
by industry in spite of the many quantities of goods sold in retail
In a civil suit scheduled to get
#man

total

Prov. of Alberta

Anti-Trust Division of Department

While New York office \of

W. Aldrich,
International
Commerce. :?;y;.'■? ;rr

Jan, 2 by .Winthrop

rail men

higher dividends

business men on
maintain productive
:
' ' > ;

international. committee of
the business cycle and to

moderate

company's debt and

finances there are many,

creating full,

...

report of an

ago.

years

Allowing for the
present Federal income tax rate
this saving is alone equivalent to
more than $2 a share on the com¬
mon
stock.
Moreover,! the road
Las maintained a strong financial
position (net working capital is
still close to $20 million) so that

plant capacity is considered

new

level4 of

which

$2,800,000
cut of

are

indicated

tices.
•

229,500 of the 387,550 shares
stock outstanding and
of the 5% preferred.
There

owns

of Commerce

employment. Report result of study by international committee
headed by Paul G. Hoffman. Supports free enterprise system,
but advocates investigation of competition and monopolistic prac¬

As the crude ton¬ js an efficient property to operate,
as evidenced by
the fact >that it
nage was lost, however, Texas &
Pacific as an individual property has consistently been able to carry
afar larger proportion of -gross
was able still to show more favorr
able long term traffic and revenue through to net operating, income
trends than those of the general than practically any other . rail¬
region in which it operates or the road Qperating in the' Southwest
Class I carriers as a whole. For or Centralwest Regions. * In 'this
era of constantly mounting costs
one thing, the road benefited ma terially from the expansion in in¬ this. inherent efficiency stakes: on
There? ^ is. no
dustrial plant capacity in the ser¬ added; importance.
vice area, opening up new traffic ouestion but that operations" and
sources. ' Automobiles
and prod¬ earnings are going to fall well be¬
low the war time pre-tax levels.
ucts, and iron and steel in par-4
ticular have
become important Nevertheless, it is indicated that
revenue sources.
This industrial earnings last, year topped $10 per
share and estimates for the cur¬
growth of the service area re¬
ceived additional stimulus from rent .year run to $15 a share, or
the war needs and much of this perhaps more. With the improve¬

years,

Winthrop W. Aldrich releases International Chamber
recommendations for moderating business cycle and

pipe lines.

the depression and early recovery

Plan

Oilers International Stability

sistently- for more than ,25% of
total freight revenues.! On the
basis of the world-wide food out4

railroad analysts have been consid¬
look and the industrial, growth of
ering the common stock of Texas & Pacific in recent weeks. - The
stock has. recovered some 10 points from the 1946 low but has still parts of the service area railroad
been available almost 20 points below the year's top level.
At these analysts visualize a continuation
of high traffic and revenue levels
prices the stock is only about four times indicated 1946 earnings and
for Texas & Pacific for a number
perhaps three times earnings po-<$>of years to come at least.
tentialities for the current year.' shortly. thereafter as virtually all
After an extended lapse during of the crude tonnage was diverted U: Fundamentally Texas & Pacific
the intermediate term many!

over

9, 1947J

Thursday, January

FINANCIAL CHRONICLE

creasingly favorable, at least tem¬
porarily, during the latter of last
year,

Throughout

that

period*

except for the interruption in coal
mining,
industrial
disturbances
in major industries were kept at
a relatively low level and produc*
tion was rapidly coming nearer to
business volume.
The supplies of

goods have become more nearl^
equal to the demand and sales of;
them have been a larger percent-r
age

of total business volume. This

index, which is 6% higher than it
was

a year

ago,

is based

bank*

ing figures and. Indicates the total
amount,of. business and financial
transactions carried on by means

of! checks;?4 As

most

business} is

L h. roihehild &
Member of

National Association
of Securities Dealers, Inc.

52 wall atreet
HAnover

2-9072

•

1 n. jr. c. S
Tele. NY 1-1293

30%

goods each month

they purchased during the
corresponding, months of the,.pre-;

;...than

conducted in that way, this .indicator shows what

Continued

is taking place

on,,

page

173)

Volume 165

Number 4558

THS COMMERCIAL & FINANCIAL CHRONICLE

"Whose Freedom of the

Clarence Smith Joins

F, L, Putnam & Co,

•

r-v-.;

By HENRY A, WALLACE*

Editpr, ''The

Commenting

Npyir Republic"

opposition to him, fQrroer Vice-Prosiient and
Commence Secretary claims *'few ineii frav£ jloiaq jnore
create T
food abundance than L"
Asserts jiberal commentators jiave beeq
.eliminated from the air and though people in long run will never'
be against liberal cause, they
"ay^ mighty M°w in catching up."

;

on press

Says it is more important to know "the liberal truth than reactionary
lyuth," and expresses faith |n destiny of an active press.
~

■

This is

first award from the working newspapermen.
I can't
how happy I am to be with friends who for the moment are

tell you
not

after

scalp

not

disparage
the help which

a c

t i

n e ws

WmTifj

•

3By

Some

tjie

tons of printer's ink

for

•' me

thai less -than half >a
.

called '(on"7 me

Senators

over/.-;^^^KK.y^H
-

legendary

figure. Some-

Henry

My-

certain

and-

than they yvill

eyer-know by

cro\yning me/with a continuous
succession of brickbats. Probably
l|. would not be here tonight if it
had J not: been/for the /constant

Y JHR

HHH ■ JKKM

into

friends

and

also

with

Scores present system of

dealers

some v

barrage of attacks in 1946.

Wallace

their,

choice

and

form

livelihood, L appreciate this

portunity

acquaint

questions arise

to the

der

securities in the corporate

nicjpaji markets; pr; bow

With Garyeir & Co.

bank

brokers;

briefly.dis¬
-

bond

served

may

purchase

government bond at your

through

-your

tiable

diffqr

and

not

These

•-

amounting to
Federal

about

debt,

70%

Maloney Act for Labor

labor upions operate/^der a/self-regulat^
vised by a Federal Commission similar to SEC.

handle.

///•■'

•

page

•

«V

/T^

ToJbcjiue annually $331,000
1

(,f.

1'^

,'c

| I

' " ; /
•

(Philadelphia Plan)

* 'f

each January, 1, 1948 to 1957, Inclusive

"**'

^/I/

T ! 'K

V'.A1

To be unconditionally guaranteed as to payment of principal and dividends by
endorsement
/„/.'/:"; -

Says this would

require union rules and regulations to conform to provisions
sary fo protect public interest.

neces¬

.;"/\r

The house

organ "News" of the Association; of American Ship-?
haa released.the summary of article to appear in its issue of
10, prepared by George
Morgan, President 01 the Associa-} merous dealers we?e taking adtion, who, * as an attorney, was 1 vantage of the ignorance of jnformerly counsel |o.£ District 13 yestors as to the market values

;

These
Z

-./

'7;--'

■'

■■

.7"

'./

Certificates

art to be issued under an Agreement to be dated as of January 1, 1947,
provide for the issuance.of ,$3,310,000 principal amount of Ccrtihcafes fp.bq
by new standard-gauge railroad equipment to cost not less than $4,149,750.

which will
secured

:■

fry The Baltimore and Ohio Railroad Company

■

;

owners

Jan.

MATURITIES AND YIELDS
(Accrued dividends

the

of the National Association of Se¬

curities

that

Dealers, Inc. The article
proposes a system of "self-regula¬
labor

unions

unaer

vast

number

securities

The

Ship
Owners, / and
Which, it is stated, is "for purposes
qf discussion and does not repre¬
sent Association policy," is as fol¬

the

article

Association

lows:
'

"The

establishment of

for

the

labor
themselves

position of

than

purities

well be

with
of

marked

success

over-the-counter,

dealers.

in
ser

•

"The

'National

•

1956

2.225

1.50

1953

1.95

1957

2.25

2.10

•

2.20%

Issuance and sale of'these Certificates are subject to authorization by the Interstate Commerce
The Offering

was

then

formed and substantially all deal¬

ers joined in pyder to qualify.ior
the

advantages of the Act.

The

Act is administered

•

ties

not

acquire

an ♦ appreciation
responsibilities;.to their
members, to the national economy

their

oppressive

R. W. PRESSPRICH & CO.

THE

suaded

that/ the over-the-counter
securities business was
being con¬
a

irresponsible

large extent in- an
manner-and that nu-

FIRST CLEVELAND

MASON, MORAN A CO.

seems

punish¬

WM. E. POLLOCK A

7,/

OTIS & CO.
(INCORPORATED);

JULIEN COLLINS & COMPANY
THE ILLINOIS COMPANY

KEBBON, McCORMICK & CO.

McDONALD &, COMPANY

to/ register
appropriate quasirjudicial

commission

as a condition prece¬
dent to the right to represent their

/l^/^onfinuedt;pri'/page-/183)^;;^

•

McMASTER HUTCHINSON & CO.

MULLANEYrROSS A COMPANY

CO., INC.

ALFRED O'GARA A CO.
r — — y-

SCHWABACHER A CO.

THOMAS A COMPANY

F. S. YANTIS A CO.

•

v'7l.::?v-

INCORPORATED

.7-. 7.7 7: '77;':"777' f-y-*v t'1 / 77'"7

7 7~;s

"•'

•

7.-7;;' r7;/7'.r'777;':...
■
■
Princfpal and semi-annual dividend® (January ! and July 1)'payable in New York
-,t,7. 7 city; Definitive Certificates, with dividend warrants attached, in the denomination of $1,000, registerable as to
Z"7
principal. Not redeemable prior to maturity. These Certificates are offered when, as and if received by us. It is/ :/7
/■", expected that Certificates in temporary or definitive form will be ready for delivery at the office of Halsey, Stuart
'
&. Co. Inc., 35 Wall St., New York 5, N-Y. on or about January 20, 1947. The information.contained herein has 7 V\
,-v.
been carefully compiled from sources considered reliable and, while not guaranteed as to completeness or accuracy,
•

•••

■

.,.

To be dated January 1, 1947.

J-berequired

yj.

(INCORPORATED)

CORPORATION

gains: are to be / retained; it
entirely,;, reasonable •• that

unions
with

■

HARRIS, HALL & COMPANY

L. F. ROTHSCHILD A CO;

lE. W. A R. C. MILLER & CO.

if its

■:

■■

discharge

but it might be extremely diffi/ cult to compel.;/ .•'
/ f\ "When Congress became per-

FIRST OF MICHIGAN CORPORATION /
■
• .-/■
•/;77 :
V/ ^

/for/.violation of-Jthe rules
to society generally. / Such and by-laws.*
// £ >//• J 7 />/ / //1
''/Labor
has
made
fhaturity can perhaps be encour¬
substantial
aged by proper' labor legislation', gains during the. last 15-years and

7'/-'.l

ments *

r .... -7,'^

obligations and that it does
actarbitrarily or impose ex^and

: / 7:.

of its

qessiye

/;:■ 7/.-/

EQUITABLE SECURITIES CORPORATION

it is called; of ;; its self-regulatory
functions.-. The SEC has the re¬
sponsibility to see that the organi¬

peed

ducted. to

HALSEY, jSjyART & pp; INC.

and;

zation is not lax in the

Commission/

Circular may be'obtained in any State m which this announcement is
circulatedfrom only sfich of the undersigned and ot{ier dealers as may
lawfully fiffetJ/iese securities in such State.

Association: of

Securities Dealers, Inc.,

and

1.80

vided adequate machinery for the

"It is sometimes said that;labor
Unions lack maturity in that they
t

into

by the Securir
Exchange r COmnfiission,
Congress.
Such machinery > has Which
has general supervision
been
devised/ gnd
has > been Oyer the exorcise by^ the NASD, as
case

im¬

Worth consideration b,y the 80th

applied

the

system of rigid gov*

ernmental controls might

: V

1952

lated -them.

;

rather

organize

associations

machin¬

self-regulation of
practices by labor unions

ery

1955

1.35

discipline qf members who vio¬

summary

American

1.65%.

1954

ap association or
whose articles, by¬
laws and rules of fair practice met
appropriate- standards and pro¬

195 T

1950

newspapers, the Maloney Act was
adopted in 1938. That statute ex¬
securities dealer? certain
advantages provided they, would

plan paralleling that of the NASD,
sis provided by the Maloney Act.

added)

1.15%

1949

not publicly quoted in the

are

1948

tended to

released

the

all that dealers

are

fff/ Continued

fc2% Equipment Trust Certificates"

George W. Morgan, /President of Association of American Ship
:*0 wners. and former counsel for District No. 13 of NASD,
propose?

for

Savings

bonds, since the marketable issues,

Wants

tion"

stock

At this point I should
say

Baltimore and Ohio Railroad

dealers- when

$3,310,000

that I refer only to those govern¬
ment securities which are
nego¬

CSpeciar to' The 'Financial Chhonicle)

.i—- *

operate

you may won¬

function

broker.

or ipu-

sell

the subjects

are

know that you

you

outlook |or

what

government

credit,'to the extent of

revenue or

These

would

and

afford

/In the first place,

niarket, whqsq securities do not

Co.

can

daily fluctuations in such a giltedge market as the government

associated" with that firm's Boston
office
and $ subsequently -w i t h
G." M.-P. Murphy & Co., Smith,

do.

dealers

cuss./;

cause

that

with

you

how

op¬

some of the fundamentals of our
functions and operations. At times

its

other

•

bond quotations

government bonds from the stand-

government

handling

sure the 19 recognized government

j *An address delivered by Mr.
BOSTON, MASS. — Wayne
•
attacks stirred the truly liberal
honest but simple. commentators*;and columnists' to- Wbiiihg Las become * associated Childs befqre Chicago Chapter qf
At other times I am painted as action, "and as' a -result, few' men with Carver & Co., Inc., 75 Fed¬ the American Institute of Bankr
dishonest • and designing. When I have
been -more - benefited r by eral Street.
ing, Chicago, 111., Dec. 10, 1946.
launched the eyer normal gran¬ favorable publicity than: myself..
ary they criticized it as the abYou in the Guild hav.e in effect
hobhal granary; : When I pre¬ by this award'rallied to my de¬
pared .the way lor farmers to run fense and I want you all to know
their own affairs by county com¬ how prpud I. .am to be honored
mittees I was culled a dictator. .by the. Guild. 1 am proud
to'; hoi
Probably few- men have done working ; at the "New Republic,\'
more
to. create food abundance which is a Guild shop comprised
4
\* ^
^
r
!' '
T "r
^ ^
than I, but thanks to my enemies offine hard-working liberals for
whom .1; have, the highest/esteem.'
*A talk by Mr. Wallace at the
For 10 years your organization
Annual Z Page One > Ball of the
haf fought like any Other•; trade
Newspaper Guild of New York, Union for higher wagea jand^ job
.•
New York City, Jan. a, 1947.
Continued on ; page /175 V/''
times"they

describe

dealer

not prices of last

the country must<£wonder
themselves from

times

about

subsidiary,
t h e', Asia, Banking
Corp/ in China,. Later he was

bond

government

this investment field.

;
My^ assignment is to discuss
PPlr\* of a stealer, and since I'm
bond

New York in their New York and
London' offices

method

transactions,
and suggests that establishment of a central exchange
trading floor
| for dealers might be step in eliminating some
existing weaknesses

war Mi/ Smith was
number of years engaged in
and
foreign > banking

Co.

history of

present

Corporation '/from

Guaranty /Trust

Traces

merely dealers' judgments and

domestic

the

developed.

;

pseudo-liberals, have, helped" me Barney & Co.,. and Clark, Bodge depend for vqlue

| me they -have//
a

fable

;

reactionary

have c criticized

dealers.

j marketing and shows how

Prior to the
for

with

While | was Yice-Presidentl

i ng

/hundreds of;;.

made

dozen

toZme.

preps no man

multitude of . conniving
fyiends while others have spread

p a p er

p o u r

havipg

/ friends have
been

the

scarcity. r

re-,;.:

o n a r

has been
cursed for "producing food

among
'

& Co.

present functions of specialized

bond

government

which organization he is at pres¬
ent on terminal leave,
-

•

O f

Vice-President, C. F. Childs

Mr. Childs describes in detail
marketing methods relating to U. S.
Government securities and explains

course 1 would

Finance

By F. N. CHILDS*

;

Smaller Wap Plants, Corporation
as District Loan Agent, and since
Jan. 25, 1946 with the Reconstruc¬
tion

i/J

•

BOSTON, MASS.—Clarence E.
Smith, formerly active in local
financial circles and during the
war period in government
service,
is returning to the investment
field, having .become associated
with F. L./Putnam & Co., Inc.,
77 Franklin
Street, it is announced
by 'the\fii*in./.'in receht years, Mr.
Smith has been connected with the

January 7, 1947,

believe it

be correct

of this date.

174)

THE COMMERCIAL & FINANCIAL CHRONICLE

long term

the market, on , a
■

•'

1 v..- vf

would favorably affect
business opportunities for

trading corporations by American firms,

freight

ocean

and offer

rates,

Panamanians. '

new

■

?E.

Thomas

v■

•

"'" ,y "

T •'

•.

Industrials declined

—

only 8.1%.

of '1942, the
American Banker index has moved
from 22.9 to 44.3, equivalent to ail
lows

the

From

and would increase cargo

Lyons, Execu-

tfT*

tive Secretary

SypH9BBk>7*£

eign

should have

For-

the

said

merce

new

1945 year-end

index.

Stocks v
appreciation of 93.4%; this comclosed the year 12.6% below their pares with the Dow-Jones Indus¬
measured by the "American Banker" daily trial's move from 92.92 to 177.20,
stocks varied between a maximum decline or 90.7%.

prices,

Individual bank

EmB^' Jan.6/
E.

Jimenez,
President of

Lyons

the

become

six months' study of trade

both

in
the

;

important

arm

The

\,/

per
■v

have

accompanying table shows the market changq of 18 stocks
New York City banks, arranged in the order of their
cent:decline. > v
:
'
' ■> ■:i
■. Asked Price' • - ■'
^&

appreciated from 41.22 to 177.20,
or 329.9%; while bank stocks have
appreciated from 23.9 to 44J, or
only 85.4%. It should be notedl
Change at this
point that the bank stock -

■

12/31/46

12/31/45

Bank of New York

2,095

Chase National

Central

Hanover—
P._.

106%
;

New

York Trust...

Corn

116%

Exchange

...

Bank

National City

—12.0

^20%:
46%

21%
375

19%

constitutes: an advanta¬
time for the long term in- ;
vestor to place funds in high grade
bank stocks, for the market hasr •
subsequently moved them sub¬
stantially higher.
geous

9.5

343

8.5

t—

price-to-book-value rela- f

tionship

9.7

—

that,

such

^•11.0

...

....

Irving" Trust
Guaranty Trust

matter of/■

generally speaking,;

record

—11.1

51%

Trust.....

755

book-values,^ It

—12.7

840
>
22%

United States Trust.

Continental

—13.3

64%

„

few

47%
4554
101%

At current prices leading New
City bank stocks "are, with ;
exceptions, selling below their;:

York

—13.4

5654

5254

;

4.6% below •'

was

while the Dow-Jones v
Industrials, at their 1942 low, were /
125% above their 1932 low. .
/
:

—14.5

45%,

ChemicaLBahkv&iTrust..-.L-tal--ii^^:/54%ii
Commercial National

—14.6

271

Bankers.Trust.^7i.52^

1942

market

its 1932 low,

—16.8

1
V:

35% /
317

•

—20.0
—17.6

40%

49V8
*;

—20.5%

1,675

]

128.

.j.

Bank of Manhattan...

Morgan. J.

380

-478

;

First National

port."
In addition to

Industirals

Dow-Jones

1932

the lows of

However, from
the

of leading

com¬

branch of the zone should
be. provided in the National Air¬

arrangments made

Zone, Through

for

merce, a

Canal

and

Panama

Mole

used

facilitate
the
handling of cargo in and out of
the area. As air cargo has already

Republic

Conditions, tariffs and port facili¬
ties

"It? should

construction

after

Warehouses and docks of modern

.-.V"
of Panama
a
special' fiscal > committee

and

Cristobal

near

that

shipside
possible to
the
mains ship
channel of the
Canal," he said.- "The foreigntrade zone should include ample

Enrique

for Public National.

':'yV'
recommended

Harbor

and located

Don

Senor

area

zone.

l§l|i made the rec& ■ -1 °mmendation

gLlM-.
.IbHRV

Colon

Lyons

Mr.

em¬

6.7%

for Bank of-New York and a minimum decline of

of 20.5%%

It would also
business opportunities

ployment.
Mr. Lyons
the

Ml..

favorable effect

to Panamanians and increase

ment of Com-

which

freight rates.

offer

if8®iPR®t.1" theDepart■

Panama

ocean

Trade

z 0 n e Board,

%'^

i. out

and

tonnage

/
/

New York City bank stocks

K-

;

from 192.91 to

177.20, equivalent to

DEUSENi

VAN

basis, j.

During 1946 they declined 12.6%
as already rioted;
the Dow-Jones

•

This Week—Bank

•

zone-in the Republic of Panama
report made at the request of the Republic by

Establishment of a foreign-trade
is recommended in a

Bank and Insurance Stocks

Report compiled under aegis of U. S. Department of Commerce
states that free port in Panama would stimulate establishment of

■■

concise recom¬
60
Manufacturers Trust".^
6454
:
mendations on establishing a for¬
—6.7
Public National
' \
4854- '•
45%
eign-trade zone, the report con¬
tains detailed analyses of Pana¬
■v:.r
f.:;;■
10 ao?
Government.
t"
Average of 18—...
.V'p.'y.';; '<+;■' r:
v..;
Yi'k
v
.''There is little chance of de¬ ma's foreign trade, the effect of a American Banker Index..^...
I.
50.7"
: jiy
—12.6%
trade zone on transportation costs,
veloping a profitable consignment
It is a coincidence that exactly tional City remains on a semi¬
air
commerce,
Pan
American
andre-export - business on - the
basis,
but
raised the
Isthmus unless new facilities are business support of the plan, and nine stocks declined more than annual
WASHINGTON, Jan. 8 ~ (Spe¬
the average of the 18, and nine amount from $0.65 to $0.80; Public
cial to the "Chronicle")—Interna^
provided in the Republic which press approval.
raised its fourth quarter dividend
will permit greater freedom in
In gathering > material for his stocks less;/ Strongest to resist the
tional Fund and World Bank offi- :
decline were Public, Manufacturf to
$0.50 : from
the/ previous cials are incensed over the State :
handling the commerce passing report, Mr. Lyons visited most of
ers Trust
and Guranty;
A few amount of $0.41%. Bank of Man¬ Department's : refusal to vacate
through
Panama,"
the
report the countries in Central and South
stocks rallied slightly: in the final hattan's increase was made in the additional promised space in the
states.
"A canvass of leading im¬ America. U
imonth of the year, viz: Bank of last
quarter of 1945 When its private building they jointly occu¬
porters, exporters, steamship ex¬
New York, -t-1.3 %; Central Hani- quarterly tate was raised - from
ecutives and government officials,,
py, according to the Washington :
Nelson Wagner Opens.
over, 4- 0.5%; Chemical, -{- 0.5 %
$0.25 to $0.30, resulting in the an¬ "Post."
and of businessmen in South and
The newspaper
quotes
Corn Exchange, -f-3.2% and Na¬ nual
difference
shown
in the World
Central American^ countries,
Bank
Acting President Own Investment Business
as

State Department,
Mr. Lyons was assigned to make
the survey for the Panamanian
the U.

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

World Bank in Row

■

„

Over Office Space

well

the

United, States

and

BUFFALO,' N.

Y.r-Nelson B.
forming his own in¬

Mexico, furnishes ample evidence Wagner is
that a foreign-trade zone would
vestment firm with offices in the
be well patronized."
M. & T. Building.
Mr. Wagner
The purpose of a foreign-trade was
formerly co-manager of the
zone
(or free port) is to provide Buffalo office of R. H. Johnson
a
site where goods may be un¬ & *Co*
Prior thereto he .was a
loaded
duty-free for transship¬ principal of Hayes & Wagner, Inc.
ment or for examination by pros¬ He began his career in the invest¬
pective buyers.
Any goods leav¬
ing the port for the interior are
subject to all customs laws.
At
present there are two such zones

ment business more than 20 years

City

and

The report states
zone

v; in

that

ANTONIO, TEX.—John H.
McMullen has opened offices in
the Alamo National Bank Build-

foreign-

Panama

would

inf,

to engage
business/1'

prompt American firms to estab¬
lish

trading

corporations

1946

there,

the securities
*

the

1.60

2.40

With Inv, Securities
,

2.20

City

Public National
Chase

—

National

1.50

changed

1.7375

from

semi-annual payments of $0.70 to

g JACKSON, ; - MICH.—Peter J.
Van Valin has joined the staff of
Investment Securities
Co., Na¬
interest to note tional Bank Building.

It is of further

that

Jan.

Ex¬

1947 Corn

change declared a quarterly div¬
idend of $0.70 per share, instead
of' the former quarterly rate of

HerrickT WaddeH

With

(Special to Tot Financial

become

Compared with the Dow-Jones H. Gillett has
Industrial stocks, New York City

stocks

are

NEW JERSEY

SECURITIES
•
:

■

'"v. V-"'

Y.
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New

York

■

•

Telephone: BArclay 7-8500

Rippel &Co.
1891

EttablUhed

18 Clinton

;

1-1248-49 ■
Department)

Belt Teletype—NY
(L. A. Gibbs,

■

Exchange

Stock

NEW YORK 5, N. Y.

120 BROADWAY,

%.;:Y-":

' •.'

Members

I. S.

Laird, Bissell & Meeds

'.'I

of America
\ '$kY
:'p;

•

Request

."'.v, Yy/Kv

'' 'f. \ ' C''>( -y

J,i

/y' U.r > •%

City Banks
y-;'

Tagging -behind

19 New York

affiliated^

A imniio

•.rt.rv

f p-'/f

$40,000,000

due January 1, 1967

Phone—REctor 2-4383

WHOLESALE MARKETS IN
BANK and

INSURANCE STOCKS

INCORPORATED

NEW YORK 5;
:

10 Post

231

Office Square

HUBBARD
;

S. CaSalle Slretl

CG'/oj

■

412

WIRE SYSTEM CONNECTING:

TELEPHONES TO:
Providence.

SAN

MICHIGAN 2837

' j

FRANCISCO 4

Russ

West Sixlb Street

Building

Sutter «0«7

'
'i

SF-J7J

NEW YORK, BOSTON, CHICAGO,
ANGELES, SAN FRANCISCO

Hartford, Enterprise 6011

Enterprise 7008

;

NY 1-287S

jyLA-ioSO

CLEVELAND, PF'LADELPHIA, LOS

January 9,1947

Wall Street

LOS ANGELES 14

FRANKLIN 7535

06SO

B0-ig7

PRIVATE

WHITEHALL 3 0782

CHICAGO 4-;

BOSTON 9

MArket 3-3430

;

N. Y.

Manager Trading

St., Newark 2, N.

2.55% Promissory Note

The First Boston Corporation

Waddell & Co., Inc.,

with Herrick,

Earnings Comparison

}een and is not hereby offered to the public. This advertisement appears as a matter of record only.

Chronicle)

MQ^alcoIrnl

KANSASCITYV

$0.60,

V-V;

Co*

Chronicle)

(Special to The Financial

quarterly rate of $0,875 to $1
of 1945.

placed privately through the undersigned with an institution acquiring itjor investment. It has not

was

lying to
months."

in the second quarter

...

quarterly payments of $0.40; Na-

1945 resulted from an increase

bank

This Note

small increase over

Trust's

York

of Manhattan $1.05 $1.20
Bankers Trust
1.40
1.80
Bank

1.30
1.60
New - York Trust--— 3.875 4.00

SAN

Orleans.
trade

1945

that somebody

I'll say is

Fund and

Bankers
Trust
increased:
December, 1945.
Several banks
paid higher dividends in 1946 thai} quarterly rate from $0.35 to $0.45
in 1945 as noted below. }■
in the first quarter of .1946; New

National

J. H. McMullen Opens

"All
has been',
for at least two
article reports the :

Smith as saying: ;

Harold D.

The
Bank officials as bitter its and contemplating drastic action.

being that made by Public in ments.

cent

Manufacturers Trust

Pomeroy, Inc.

New

one

above

table; Manufacturer's quar¬
No capitalization changes were terly rate -was also increased/in
made during 1946 among the 18 1945 from $0.50 to $0.60, resulting
higher 1946 dividend pay¬
banks Under review, the most re<- in
;

Chase National —.1.40

with Schoellkopf, Hutton &

ago

in the United States—one at New
Vork

tional City .+2.5%,

Portland, Enterprise 7008
Detroit, Enterprise 6066

Volume

165

State

Number 4558

Dep't Domination Over Foreign Lending

Edmund Whiling With
Kaiser & Co. in N. Y. C.

Members of Congress reported becoming suspicious that intent of

Congress is being circumvented by State Department in determining
day-to-day policies of Export-Import Bank and World Bank, and in

^ dominating National Advisory Council.
objecting to "modern" dollar diplomacy.
WASHINGTON
of

Edmund

Whiting is

Brown Bros. Harriman Biltner, Edelmann Go.

Announces Appointors Formed in New York

now

Brown Brothers,
Harriman &
Co., 59 Wall Street, New York
City, members of the New York

the trading department of Kaiser

Congressmen reputedly
s

Co., members of the New

and

San

Francisco

York

Stock

Ex¬

Stock

changes, in the New York office

(Special to the "Chromcle").—Some members

Pine

Street.

Mr.

Congress who have been interested in the evolution of the United

the

Bittner,
been

Exchange, have

with

Co.

offices

has
80

Street, New York City to

announced engage in the securities business.
Joseph ,r. Murray C. Bittner / and Henry
assistant man¬ Edelmann are partners in the firm.

appointment

Whiting Kenny, formerly

Edelmann

formed

Broad

was formerly manager of the trad¬
ager, a manager in the New York
Mr. Bittner was previously Presi¬
foreign lending activities^
City office. M. Dutton Morehouse
the open discussion stage on Cap¬ ing department for Peter Morgan
are watching a little anxiously the
dent of M. C. Bittner & Co., Inc.
has been appointed a
manager in
& Co. and prior thereto was with
role the State Department is play¬ itol Hill anytime soon is a matter
the
firm's
Chicago
office, ; 135 and Mr. Edelmann, proprietor of
for speculation. '
Mitchell & Co.
ing in the determination of in¬
South La Salle Street.
Henry Edelmann & Co.
dividual foreign loans. These Con¬
gressmen have an eye on the Ex¬
port-Import Bank in particular

States'

On the board of directors of that
bank

the

Secretary

his alternate—sits

State—or

only one o:l

CHARTERED

| five members. Congress planned
it

1853

that way.

Similarly, the State
Department was assigned only one
of the five seats comprising the
NAC

the

National Advisory
foreign lending set up
by the Bretton Woods enabling
act. Congress, it is now being said,
—

Council

did not intend that the State De¬

partment should have the decid¬

ing or dominant voice in those
bodies; but there is a suspicion in
Congressional circles that the in¬
tent of the Congress is being cir¬

cumvented, whether by design

TRUSTEES
john j. phelps

That

the
State
Department
leading role in the de¬
termination of day-to-day policy
as
to
the
lending
of
dollars
abroad should surprise no
one.
Indeed, until the department in
the
instances
of
Export-Import
loans to Poland and Czechoslo¬

plays

vakia

Retired

:-V

JOHNSLOANE

RESOURCES

the

lack

Chairman of the Board,
W, & J. Shane

Cash and Due from Banks

President

■..

WiLon &

co¬

State and

Mcllvaine, Chicago

Real Estate

GEORGE DE FOREST LORD

understand¬

Lord, Day & Lord

ROLAND L. REDMOND

at a directors'
that Bank was re¬
ported in these columns last week.
appearance

fact

that

American

the

ex¬

render

not

weaker
the influence of that department
in Wofld Bank affairs.
If

■

Debevoise, Plimpton

sponsorship of Mr. Clay¬

ton does

the

State-

thbbe influential

any

Department
in

is
activities

the

and policies of the Export-Import
Bank and the NAC than the Con¬

intended when those bodies
created and enlarged, the
national " legislature
is
itself

Mortgages

7,378,000.00

3,850,000.00

1,475,000.00

■

;

563y4l8:21

Total

;

4,123,71345

840,000.00

$165,067,967.45

FRANCIS T. P. PLIMPTON

from the State Department

with the

Lawyer

ecutive director of the Bank both
came

...

^ccru^d'interest Receivable

Carter, Ledyard & MiJburn £ ^

HAMILTON HADLEY

ex-

alternate

v.;

Banking House

able respect. Undersecretary Clay¬

The

;

90,398,153.69

Obligations

Federal Reserve Bank Stock

New York

Department and in fact its mere

cutive director and

27,914^704.94

...

Municipal Obligations

Other Bonds

BARKLIE HENRY

Bank circles the voice of the State

ton's

United States Government

.}■?■

JOHN P. WILSON

political and
finacial foreign policy. In World

meeting

$ 28,524,977.46

williamson pell

our

is awaited with

Loans and Bills Purchased

"put its foot down," there

ordination

nod

->■

of Condition December 31, 1946

criticism

was

Statement

otherwise.

&. Page

LIABILITIES

BENJAMIN, STRONG

;

Capital Stock

J. H. Whitney & Co.

•

Surplus Fund

First Vice-President

•JOHN HAY WHITNEY

v":

•-.

Undivided Profits

Reserve|.

General

4,000,000.00

24,000,000.00

♦

....

G. FORREST BUTTERWORTH
Cadwalader, Wickersham & Taft

2,810,528.33

1,060,000.00

gress

were

partly to blame. For, under the
Congressional reorganization act
of last year in the redistribution
of

functions

committee

tion

was

Currency to theCommittee on
Foreign Affairs, the "State De¬
partment" committee. This could
not but strengthen the voice of
the department in foreign loan
and investment matters.

tion

Vice-President,

Davis Polk Wardwell";
}

;

•

1945.

Some

the

programs on;

theJ very

con¬

and

Woods

President,.

lUnitnt Sulphur

^
tympany

JOHN M. HARLAN?
j*

Root, Ballantine, Harlan,
Bushby & Palmer
;

the theory that we

buy international coopera¬

Total

visit of

•

9,642.11

•

350,000.00

•

$165,067^67.45

Securities, carried at $5,965,000.00 "have been' pledged ltd

War Loati

secure: United States tiovernment
Deposit of $4,090,389.oj. and for other purposes as required or permitted by law.

OFFICERS

BENJAMIN STRONG, first Vice-President
ALTON S. KEELER
'.

JAMES

Vice-President

M,' TRENARY

AUGUSTUS J. MARTIN

Vice-President and Secretary

Vice-Presi4ent

Assistant Vice-Presidents
lelandc. covey

henry b. henze

george merritt-

h. john simmen

arthur h. erb

Berkeley d. Johnson

frederick m. e. puelle

lfenky l. smithers

ferdinand g. von kummer

frederick n. goodrich

elbert b. knowles

carlo. sayward

irvin a, sprague

lloyd a. waugh

george f. leb

henry e. schaper'

w. a. w.

sterling van be water

stewart, jr.

Assistant Secretaries

of reach¬
helmut andresen

following

conclusion

European

j
;

russell h. johnson

paul

frank

of its

group

archibald c. curry

elmo p. brown

that

1947

Committee,

Colmer

for example, gave signs

ing

WILLIAMSON PELL, President

to the conclusion that we had beeh

The

similar

tion, at the time mentioned came
wrong.

975,732.96
-

....

emerged late

who actively supported

Bretton

could

131,862,064.05

;

Department in foreign lending is
with the "get tough with

ir.

HERMAN FRASCH WHITON

linked

gressmen

Dividehd* Payable January 2,

Sunderland & Kiepdl

present dissatisfacLthe role of the State

Russia policy." which

the

with

;

Reserved for Taxes, Interest, Expenses, etc.

Company

EDWIN S. S. SUNDERLAND
.

Unearned Discount

(

"Aetna Life Insurance

lending

shifted from the
House Committee on Banking and

Partly

:>??

jurisdic¬

international

over

legislation

Deposits

JAMES H. BREWSTER, JR.

members in 1945. On the basis of

campbell, jr.

j; keeler *

thomas

J. madden

armitage morrison

jeanmauze
/

a william

joseph pickarp
william d. ryan

j. miller, jr.

academic logic there may seem to
be

discrepancy between a Con¬

gressional

desire

loans

have

henry g. diefenbach
■

georgb p.

Comptroller

jochum

Auditor

withheld for political reasons and
an

unwillingness

made for the purpose
dollar
^

diplomacy.

Whether

them

see

of modern
-

the matter will reach

FEDERAL DEPOSIT INSURANCE CORPORATION

FEDERAL RESERVE SYSTEM

NEW YORK CLEARING HOUSE ASSOCIATION

Our

Military Gov't Effecting Drastic Economies Pittsburgh Stock Exch. No

has been
your

lems

which

are

prob-^ cation *

Military

facing

can

change,
nual

personnel at our disposal to
fering?',;
cope
with these problems. You
can
well imagine what such a
drastic reduction in personnel will
B. G.
mean.
It seems to me that this
B. G.

the

Officers

will prove

the

Exchange

John;

•contract

service?.

Ledlie W. Young,

are

A. E. Hasten &

■

•

Co., Vice-President; and William
John B. Barbour & Co.,

J. Bauer,

Cantor Director

Treasurer.

elected

terms

for

cannot

Broadway,
New York City, has been elected

three years each were

help but remember that an econ¬

Chairman of the Board of the Art-

Kinkey, Ji;.; Carl S. McKee, C. S.

omy-minded legislature not very

Craft

type

extremely

long

ago

expensive.

Cantor & Company, 61

Briar

Corporation of McKee

Pipe

Co.;

and

Eugene

cpntends

Says wage increasss in collective bargaining cannot
depression.'■

the

answer

present
ord

for- America in 1947 depends upon
question—can we avoid a recession?
Can we i

one

the

Both

breaking

economic

ing offers

high prices
re-

and

be¬

tween
and

prices

result

highs. Nel sales amounted to $141,544,442 compared
with $108,199/846 ia the preceding year. Net earnings after preferred divi¬
dends amounted to $3.47 per.common share compared with $1.32 earned jn
the 1945 fiscal year (after adjusting for stock splits). Improved profits result
profits reached

new

;general

Keen Johnson

price collapse
as after the last war?
I -cannot give you a positive
answer to that question because
there are too "many factors in¬
.

while we carried out the tremen¬

dous task of military and indus¬
trial demobilization, total unem¬

combined with increased volume from various
Burlington Mills carried forward
of fabric development as well as plant expansion. The Company

ployment never exceeded 2%
million. Today 58 million Ameri¬
cans have; jobs.
'
;

acquisitions and expansions. During the year
its program

strengthened its financial and trade positions.
!* f '
* ' 1
*
* - *
'•
;
*
'
. V% •«
ij - • '
*
!
THE FUTURE; More normal conditions, which are returning gradually to the
'

industry, provide
With retail

countries still to be

exceed the

supply for

some

the

leadership in the production pf high quality merchandise and
development of new fabrics.
v ;
:
v.

•

;■ -v

■

v,;

■>

For the fiscal year
-

•

and amortization

profit, before depreciation and amortization

, -

;

Depreciation and amortization

107,645,859.88

;

33,898,582.35

$8,297,245.17
1,706,850.52

Each

in human values,

the^e

very costly. >
Economists <. and historians

it.

10,004,095.69

wqfe Igived too large a share of
the; national income.
^

Todays there is growing agree¬

make

mistake

Americans

economic

shall

power

national

our

about

resolved

are

that neither blind chance

nor raw

determine

welfare.

reject
of boom and
bust,
trying to cooperate to
the way to peace and abun¬

the

fatalism

and

open

dance.
vent

To reach that

major

goal-r-to

depressions

minor

pre¬

and

recessions

—

both unity of purpose and
renewed spirit of fair play. That

need
a

obligation. lies

industry,

.good.

common

all

upon

agriculture,

Government

us—

labor,

dedicated
;

and

the
w

"Honey at Work"—
Slock Exchange Film
First, showing
and

Chicago

Philadelphia

of, the

New

York

Stock

Exchange film, "Money at
Work," produced by March of
Time, Inc., will be held on Jan.
15 and 17,
respectively, it was an¬
nounced today by James F. Burns,
Jr., President, Association of Stock
Exchange
Firms, under whose
auspices the film will be distrib¬
uted throughout the
country.
The

exhibit

Other income

Other deductions

;

•

;

the floor of the Phila¬

Exchange and ! in
Chicago in the Grand Ballroom of
delphia
the

Stock

Palmer

o'clock.

House

both

3,30

Officials of corporations
securities listed, officials

having
of banks, members of the Invest¬
ment

Bankers

Association,
the
of Security

National

Association

Dealers,

members,

managers

partners and
of stock exchange mem¬

;

...

•

"•

production and equitable distribu¬
tion, within the framework of a

817^764.68
'

free society. I do not believe that
is an impossible task for a Nation

•

23,894,486.66

;

•

sentatives have been invited to

1,748,580.75

sion by maintaining an economic
balance which will insure full

...

•

ment that we can avoid a depres¬

ber

....

(including charitable donations of $355,078.88)

»•*»/>

;
<

(

—III

Net profit before provision for Federal,foreign
and before minority interest .
.
.
.
.

Provision for

I. Ill

.1 ,1..

I ] II

and state taxes'on fncothe '
income:

Federal

Federal, foreign and state taxes

excess

Net

profit.
|,J1

Total

.
1

assets

net

taled

;

$2,722,428.06

;

7,389,671.47

;

.'v#

•

/■ \

•

our

11,577,110.60

13,248,192.13
327,394.63

;

s
.

$ 12,920,797.50

vV*^''''

of the company as

at September 28,
a year

♦

1946, amounted to

earlier. Current assets

$58,363,825 compared with current liabilities Qf $21,264,666, making
working capital of $37,099,159. - Cash and Government securities to¬

liberty and j ustice.

J. SPENCER LOVE, President.

difficult task because

economy

vast and com-

pLex! ,^e find it easier to agree
upon principles than to put them
into practice. Today, as never be¬
fore, labor and

management are
being called upon to write, not
merely the bread and butter con¬
tracts

determine

which

wages,

hours and working conditions, but
a
broader agreement — a
social

firms

and

registered

repre¬
a

reception prior to the showing of
the
film
at
which
Mr... Emif
Schram, President of the New
York Stock Exchange, will be
,

present.
";

special showing at 5 o'clock
Friday afternoon, Jan. 17, will be
held in Chicago's Palmer House

Grand Ballroom for employees of
member firms which Mr. Schram

ivjll address,

Runner With Moseley.
F.. S.

Moseley & Co., 14 Wali
Street, New York City, members
of the New York Stock
announces

has

that James

become

firm.,:

associated

Exchange,,
R.

Runner

with

;.Vo-

the

■'./

contract which will encourage the

widest,
fullest
distribution
goods and services to all
people.
V

Fortunately,
ter
this

$13,952,932.

Nation fortified by its abiding
But it is

J,465,011.07

V if

in men, materials and machines—

faith in

24,825,302.73

•

of subsidiaries applicable to minority interest;

•

$90,130,525 compared with $55,108,640
were

profit, tjfter taxes, before minority interest

Less: Net profit

Foreign and state income taxes.
Net

...

profits taxes

Federal income taxes

blessed with unmatched resources

Philadelphia

25,643,067.41

Operating profit

are

minimize

will

always agree on what caused
these recurrent attacks, but one
fact is quite clear, From 1796 un-r
til today, no major depression has
been due to the fact that the wage
and salaried workers of America

not

;

........

Selling, general and administrative expenses

were
painfully i similar.
depression -brought wide¬
spread j suffering, unemployment
and grave financial losses to busi¬
ness and agriculture. Measured in

results

very,

$141,544,442.53

have

longer and , were
than others, but the

severe

dollars

•

;

•

Let

•attacks of economic paralysis were

' *

time

lasted

Some

Cost of sales, exclusive of depreciation

jin

•

Sales, less discounts and anticipation, returns and allowances

Gross

PROFIT AND LOSS

ended September 28, 1946

that

Since

through about a dozen of
these;- economic ^ cyclones.

"■v

■■:

,*'

■

CONSOLIDATED STATEMENT OF
>'

1796.
gone

time Jo come. The Company intends, as always, to

maintain its

by far

postwar, performance In our his-,
fory.;%yvouftd like to remind you
that this NdtiOn felt the Impact of
its first major depression Iback in

a sound basis for the continued progress of Burlington
sales/at record levels cfnd 'the needs of many foreign
met, it is likely that the demand for better merchandise will

textile

Mills.

formance.; It

also further

per¬
^he best

is a very impressive

vi;; That

unduly large

share of the national income.

prevented a sharp
downswing
during reconversion is very sig¬
nificant and very hopeful.
Even

almpst entirely from lower taxes

freedom-

give to wage afid

salaried workers

volved. -But I do know that a dis¬
astrous slump is not inevitable.
For one thing, the fact - that we

year.ended September 28,1946, both sales and

the fiscal

THE PAST YEAR: to

labor

people

recession

on a

(

(and Subsidiary Companies)

collective bargaining could bring

produc¬

tion

aims

Looking at ; the
present scene—at production, em- :
ployment and profit levels—I find
nothing to suggest that genuine

the lack of

balance

the

finding

•.

have been the aims of

loving

of the soundest and

one

Historically

em¬

ployment,

for collective bargain¬

collective prosperity.

are

grasp of

most democratic means of

.con-

116

<4?%

management

realities.- That

should be,

and

steadily broadening their

eco¬

tion

labor

nomic activity

lower produc¬

;

T.V\

rec¬

rateof

sump

M I L L SCO R P O R AT I O.N

Fundamentally, the outlcck

dUced

oUAlirir

■

axause oi

result

Lear, Reed, Lear & Co.

Brooklyn, N. Y.

voted against the fortifi¬

Charles E.

J hat encouxaglg widest, fullest distribution, of goods anj

maintain

......

Directors

■

economizing

Carothef^

Cantor, President of B. G.

meeting

JOHNSON*

a disastrous slump
not
depression has ever been caused by wage
aod salary earners, being given tao .large a share of national inand. management called upon to write "a: social;

ine ritabl?,

James Carpthers & Co., President;

country in human lives and suf¬

"-'.ByKEEN

Administration spokesman, asserting
•

the

Who

Ex¬

reelected kh'%

were;

Jan. 2.

tell

"economy"; cost

Guam.

of
this

what

You have also seen

Government.

'y:

Under-Secretary of Labor
v

of the

own eyes some

of the Pittsburgh Stock

cers

25% reduction in personnel is becoming
Jan. 1, 1947. A further cut of as yet undisclosed proportions
announced to take effect July 1, 1947. You have seen with
that

interest you to know

effective

In that connection it may

is progressing.

■'

PITTSBURGH, PA:—The;offi¬

■

You ask how our work

Thursday, January 9, 1947

Depression from High Wages

Reelects Officers

(The following is excerpted from a letter received by the ''Chroniclk"
froin an official of OMGUS in Germany—Editor.)
•; ' ;' ; r.

FINANCIAL CHRONICLE
&

THE COMMERCIAL

138

and

we are

better

complicated

of
our

Hettesheimer Partner in ^
Wm. E. Lohrman & Co.
Frank

getting bet¬

acquainted -with
economy

ours.

E.> Lohrman

Street,
*A radio address

the Mutual

by Mr. John¬

Broadcasting
Network, Jan. 1, 1947.
son over

Hettesheimer

admitted, to

New

has

beera

partnership in

Wm.
Beaver

Co., 76
York City. He' Has

been with the firm for some time
as

manager

partment;..

the

trading
..."

de¬

THE COMMERCIAL & FINANCIAL CHRONICLE

John Arrowsmith Now
By CHESTER BOWLES *■>
*

Former OPA Administrator

Is With

)v
'*

-4

Cohu-Torrey

JvCohii

New

Chicago S. E. Admits Colonial Trust Company
two SI. Louis Members Announces Promotions

& Torrey, 1 Wall Street,
York City, members of the

CHICAGO, ILL.—Ralph W.

Da-

/ Arthur S. Kleeman, President of

yis, Chairman of the board of gov¬
Holding Republican* victory portends reaction and drift from Jiberr ^v
New/ York Stock Exchange, an- ernors of The Chicago Stock Ex¬
|f:|alisrt^ v former^ OPAf Administrafoi asserts it jx'responsibiltty;^ I:J
n6unce\that" John E. Arrowsmith change, announced today the ad¬

| American liberalsto disprove rmtioiiafy lh$otfex

now

mission to

' associated with the

"membership of John

firm;

issacs, Jr., of Semple, Jacobs
; Rigfit and extreme Le^t.. Lays: down yds.' program:;(Upmmngy
Mt/Arrowsmith has recently been
Co.; Inc. And Julian M; White,
responsibility on Republican party for solving econpmic problem^ y ;
.m
tbe "''-past".;iie White & Co.
yin next two years y (2) working to develop greater economic tinder- y:%
.

jbis own investment I The Exchange now has"
attack^ "y; biisihesi' finder the^^-name of Ar¬ 151 brokerage firms and
'conducted

standing

—

constituting majority of people:;. (3),

among groups

| fj ing monopolists and "scarcity thinkers"; (4) holding fast to "New;./
V Deal" ideals; and
(5) in foreign affairs, supporting program that:f
Vt. is generous,;yet practical;and>

avoids/powerpoliticsWanW noj:

rowsmith

•

Co.

and

was

of¬

tions

ficer of Van Alstyne, Noel & Co.

which

located

?are

Vice-President, to be Vice-Presi¬

dent; Joseph M. Sullivan, Walter
of H. Klaum, James H. Shaw and
Arthur B. Stewart, Assistant Sec¬

total Pf

retaries,

corpora¬

members,

St.

Colonial Trust Co., has announced
the following promotions:
William H.
Bassett, Assistant

Assistant

with

Clerk, to be Assistant Secretary

Louis, Missouri.

Assistant' Treasurer.

and'

y - third party.
\

x
For many: months, fand "particularly ; since • Nov,. 5,; the air ? has
been filled with reactions- The Labor-Baiters ,have.i)een
busjr.' baiting.

1 ab

or.

Tax

yThe ^ Ty77']. ~

get
ha

been

Cutters

rr;.

...

„

their mfew; jpositiort; inyan:
bdcf/as-;
sprthient r of

Reducers

and the Bud-^

^haye

^uite^rel^xed 'and' eyefiThrfcr

OSOphical 'abotit it. y They urge ' us
busy sharpen¬ hOt^td/Wofry N According^ to4 their
been

v e

ing their
i

ThepT^riff'Raisers

'have

•

iiEii|A|iii

view,'^

par-

gp- Knivesf bound to swing

be.fen looking
for
the':most

it did.

Sooner'

later, the Republicans-will get'
thingS into a mesSJaja^the/p^O^

NATIONAL BANK

tfats vwill". be/hack; ifr$.th^Nsadclle;

again: Tovothers: the election was
likely' places h signal that'stark reaction ' is here
to begin.
In to! stay; The: futufe, as/they- see
:the 'fields of it, is one of deep economic depres¬
i h t ernational sions; f;
inflationary ?; booms, - - and
relations/ our Catastrophic wars.
- '
:

rBi'g

Stick

| Between these

Wavers have

been

•

•
.

■

•

1 *

v. v

v-'

•

:V-v'

■

STATEMENT OF CONDITION, DECEMBJiR 31;
1946

■

■'•'■S'y'-:

'.■*?.;',V; 'y

"■-*./,*■/'*

■■

V'-' %

V;;

r-.-':

v.---',

V'; -■■■v.

-r-

RESOURCES

18years;; Congress is to this point of view that most
thet with a Republican
majority of us who are gathered here this
ifi both Houses.
evening will subscribe.
in

•

The

%finally arrived:/This hoph' loc ithd jnet promptly and ^vigorously/ | it

liberals

Cash and Due from Banks
u>

$1,143,400,689.02

throughout

i The
conservative .victory \oi
f cjpuntry have been reacting i to Npy; 5 was a longtime brewing.
Since 1938, the American liberals
'*-A talk by Mr. Bowles at the have won few
legislative^ yic*
.

extremes are the

majority of American liberals who

economic, social and
\ For all of them the Big Day, has political "democracy which must bO
,

^ ^^

v.-

■

first time

•

<-ri

„

OF THE CITY OF NEW YORK

•

impatiently flexing' .their accept .the
present reaction -as. a
tfiuscles.
" \
v
'■
"
threat to our

,1^1

-s

the

-'•••••

;

/',) /.N

j I

•

v-.

:* \

J '■

U. S. Government
State and

Obligations.

Municipal Securities

•

2,221,342,803.35

•

'•

•

118,135,196.10

Union for Democratic Action Din¬
ner;

Washington,

C.,

tories.

Jan. .3,

Other Securities

Even under the.leadership

pf i Mr/ Roosevelt, we
(Continued,

were

■

Twenty-five percent of the proceeds must be turned in for guilders.;
Only applicable to prewar accounts.
'

•, " > > *

.-V#'4

•'

1,'

Financial

intermediaries

were

iioned license is only applicable

the

fcannot be switched

reg¬

•

mature

applies

securities

within

only

that

months.

Securities

R.D.U.S.,,

The

owner

can

invest

/■this full 75% in other dollar se!curities. From then on he is free
in

selling and buying for- the full
(after 'the original one¬
time 25% deduction). / '•

amount

Dollar securities

are:

shares is¬

sued by U. S. and Canadian

panies
value

;

and- all
which

bonds
is

com¬

U. S.- ■ dollars./g*|y|^

Account

them

R.D.TT.S.") have, to sell
the Netherlands Bank,

and will be
.

The

pa*d in guilders.

counter value

the 25%

of sales proceeds will be paid out

fry: the Netherlands Bank in guil¬
ders, 60% in free, and 40% in
blocked account. /
It

seems

that: the

men-

LIABILITIES

4l 11,000,000.00

sii II1III

• *

154,000,000.00

48,500,613.BZ

$ -313,500,613.02
Dividend

Payable February 1, 1947

2,960,000.00

♦

15,623,913.90

Reserve for Taxes, Interest, etc.

13,663,693.10

Deposits

Augiijst/

4,495,303/5 i2.l4

Reserve for

•

Contingencies

•

The election of
thrpe new vicepresidents also; was, announced by
U n i bn
Securities jCprporation;
Nbrman W/ Jones, James A. Sand-/,

Acceptances Outstanding $ 15,600,237.86

bach and John W. Sharbough. Mr.

Liability

Jones /has,' been

assbciatdd

with!

-r-•

Less Amount in Portfolio
7

organizations since January, .1941;.
Mr. Sandbach, since August,
.1935,
And Mr. Sharbough, since March,
1936.N

/;/J,.,; /^;;;;

White

Company,
Broadway, New York City,"
nounce

Oliver
ated
was

that
L.

with

John

Sause

the

A. Nolan

are

firm.

in the past with

now

■.

i-,v

' ' f !i't

' V

A-•"

»•

■'

»'

Endorser

Foreign Bills

Other

3,870,414.29

f~'~

" ''

■

•

associ¬

Brown/ Ben¬

Johnson, in charge of the

municipal bond department,

•—

'•

■

••

•

-•-*•

*'.

;

>%'

funds and

'■

•

11,667,597.64

J '. •>

'»■

.7,'

•y*

.'/..''-f-, V, v?'

wl.

deposits, and'for other
t:

purposes as

required

Member Federal Deposit Insurance

$402,936,340.00

Deposits of $113,075,631.66 and

trust

•

1,086,324.31

an-

Mr.' Nolan

;"v

Acceptances

United States. Govemmtat and .'other securities carried
U. S. Government War Loan

and

11,729,823.57

Liabilities

to secure

120

y -' *

$4,865,535,477.68
p'i:

Adds Moian & Sause
R.

R. D. White & Co.
•

'V /

and

iheCorporation'and'itsaffiliated

nett &

above,

;

Undivided Profits

Those who do not want the 75%
in dollars (the balance in "Special

Surplus.

1944, prior to which time he was
Associated with Smith, Barney &
Co. and predecessor firms.

the /face

expressed

Corp.

the Board of Directors. ' Mr.'
Wilson has been with Union Securities* Corporation since

on a special ac¬
"Special
Account

not

will be credited
called

;

Capital Funds:

{■

Securities -Corporation)
65 Broadway;: New York" City,' an¬
nounces/that S. Wayren .Wilspnj'.
Vice-President, has been elected

The

remaining 75% may be retained
fry the owner in dollars/ They
count

2,523,388.94

j Union

offered to the Netherlands Bank
in return for guilders.

American

7,950,000.00

32,588,572.13

865,535,477.68

Announces Elections

When switching,, 25 % I of the
dollar proceeds (of those securi¬
ties which belonged to Dutch resi¬
dents on Jan. 1, 1947) must be

license

10,656,354.33

Other Assets

Capital Stock«

Onion

: This

Acceptance Liability

account Of

technical difficulties.

i The securities must be certified
...

1,126,462,490.27

V "'11,488,983.11

•

Press

of securities.

In Holland, first.

•

Banking Houses

to accounts

cases
where American securities
have been deposited in ,the name
of one of the Dutch offices which

istration

♦

Stock of Federal Reserve Bank

of .original /U; Si> seen
J
Cities that. existed in the ,U. S.'AT
Agency. The license will remain prior to the war. «
valid one year.
As a rule. this, j Dutch certificates (since t they
license will be granted in those
ire;now certified and cancelled)

Netherlands

182,949,569.36

■

8,037,431.07

Customers'

Dutch clients, according to word
currently received here by the

Mortgages

The: Netherlands Bank - has; granted a; general license f or switch¬
ing between their American securities, to those members who have
an account .in the U; S. ;for theirs
f x

■

Accrued Interest Receivable

Dutch Swifchmg of American Securs. Reopened

Loans, Discounts and Bankers' Acceptances

-v;

blocked

page; 462); |C

on,

Corporation

Vice-

Presidents; George Ortner, Chief

•.

are

■/

pledged

other

public
permitted by law. '

THE COMMERCIAL & FINANCIAL

Thursday, January 9, 1947

CHRONICLE

workers by

The New Tax Bill

Most Business Heads Not

y It/is .hoped

Board

National Industrial Conference
.j,

shows executives look

survey

for normal period in 1947 and many are planning
through use of cash and other liquid assets.
The

belief that

for expansion

only

six months of 1947 is held by

during the first
small minority of the executives

surveyed by the National Indus-<^
trial Conference Board regarding' serious labor difficulties and con¬
the business outlook for the first sequent delays in- raw material
shipments. Estimates as to the size
half of 1947.
Virtually
all
the
executives of the increase in volume of busi¬

the most com¬
monly-cited hmounts range from
1% up to and including 10%. Ap¬
proximately a third of the execu¬
tives expect little or no change
in volume, whereas about 17 %
look for declines (most of which
ness

queried look for a return of "nor¬
mal
competition" sometime in
1947.
Most of them feel that pro¬
the first half
attain a volume

should

1947

of
at

during

duction

but

vary,

Republican Chairman of House Ways and Means Committee explains provisions of his new tax bill. Provides for 20% decrease
in current income taxes for incomes not in excess of $300,000 as
well

business recession will occur

sible incentive to

C -U. S. Congressman from Minnesota
A:

ployment
„

investment in

/•

soon

ventures.'

new

will

take

the

ditional exemption

of $500, mak¬
ing a total exemption of $1,000.
The group which receives the full
20% reduction includes the work¬

reduction

bill,

H.
I

which

have

introduced.

er,

the

and those who util¬
in production,

earner,

their

ize

expanded

materials.

raw

that

its

I ami

will
beneficial to all classes. It

prove

provide

incomes

the

greater

ever

make it

operation

Treasury

with
will

that

revenue

possible to speed up the
of retiring the national

process

tax

income

markets for

and

the legislative

personal

well

will start the country on the road
to
complete economic recovery

budget with its ceiling on appropria¬
tions is approved later this month, the Ways and Means Committee
As

ventures, which

new

satisfied

65
Says bill is expected to give greatest possible incen-

old.

years
AA. five to

capital in

the investment

will open up new avenues for em¬

additional exemption increase for taxpayers over

expected that

and

H. R. 1 will give the greatest pos¬

By HON. HAROLD KNUTSON

Expecting Depression

increasing their takewithout delay; A y

home pay

debt.
The

four

tax

reductions

when

the Republicans were in full con¬
trol
resulted
in
accomplishing

these

various

know

that

objectives and we
history has a way of

that experienced
expansion, and employment. Fall¬
Applicable
repeating itself.
<
•
to the entire
ing within this class will be the
during the last six months of
/ Comparison of individual in¬
are hot expected to exceed 10%).
1946 "barring widespread strikes."
calendar yeat
management
groups v and
those
come tax under existing law, and
who furnsh risk or venture cap¬
Materials and labor are expected
Estimates of dollar volume are 1 9.4 7, a the
H.R. 1, allowing additional exemp¬
ital
for
new
will
enterprises which
tp be in more abundant supply. generally higher since" prices on measure
tion of $500 to persons 65 years of
would create more jobs in an ex¬
Costs are anticipated to be about the average are expected to be at
provide a 20%
age and over, y
i n
10% greater than in the latter a higher level during the first six reduction
panding economy. In general, in¬
Single person, 65 years of age
months of 1947 as compared to the the individual
half of 1946.
comes
y "
above $300,000, are un¬
and over, ho dependents:
earned..
tax
Many companies are planning last half of 1946. However, lower income
Net Income
to expand their plant facilities in prices are expected in some in¬ payable,
un¬
Because of the necessity of re¬
/
Before
Hon. Harold Knutson
'1947, but some contemplated pro¬ stances, particularly in foods.
ci er existing
/•
vising wthholding tables, and the
Personal
grams have been deferred or re¬
law
on
in¬
Exemption y Present Law /
H. R. 1
fact that individual taxes are now
Manufacturing Activity
duced because of rising costs, la¬
comes up to and slightly iri excess
$500
on a current pay-as-you-go basis,
:$£;///'/■:>
$—
The most consistent estimates of
600
bor problems and uncertainty as
19.00
of $300,000. The tax attributable
a percentage reduction in tax ap¬
:
700
increased activity in the first six
/ 38.00
to the general business outlook.
to that part of the income of tax¬
750
47.50
months were received from dur¬
pears
to be the most feasible
800
payers which is in excess of $300,57.00
'// "A y
able goods producers.
The con¬
|
Volume of Business
method to apply relief to 1947 in¬
.900 V:;
76.00
000, is reduced by 10V2%.
95.00
1,000
About half the executives sur¬ sumer nondurable goods turned
The bin also grants an added comes,
effective Jan. 1. Since
"*30.40
1,200
133.00
veyed look for an increase in vol- in only slightly less favorable re¬
76.00
190.00
1,500
such a method can be put into ef¬
The automobile and auto¬ advantage fo taxpayers over 65
ufne of business during the com¬ ports.
247.00
121.60
1,800
285.00
152.00
2,000
ing six months.
Such estimates motive equipment industries look years of age, in that it gives to fect almost immediately, it will
380.00
228.00
2,500
(Continued on page 165)
generally assume the absence of
each person in that group an ad- mean quick relief to millions of
304.00
3,000
484.50
least as great as

.<•<

■

4,000

921.50

6,000

638.40

1,168.50

1,000

471.20

693.50

5,000

1,434.50

8,000

IRVING

2,023.50

10,000

2,346.50

1,033.60

1,719.50 *

9,000
•

*11,000

1,261.60
1,489.60

.1,748.00,

2,688.50

836.00

2,006.40

3,049.50

2.295.20

13,000

3,434.25

2,584.00

14,000
15,000

3,842.75

2,910.80
A 3,237.60

12,000

TRUST COMPANY

25,000

Chartered

4.270.25

20,000

•

NEW YORK

30,000
40,000

50,000

60,000

Statement
■

;

■

„

—1

n—*

18®l£//:
i

;•%

'r'1f

, •

* y» * *

f •••/■

; \-

assets-

Bank

•

•:

•.

First

V:\

' :

(>1<;

w*v

Condensed Statement

■* *

Headquarters Building . . •
Customers' Liability
for Acceptances Outstanding

•

6,510,850.84

•

15,022,400.00

•

'. \

ASSETS

3.266.688.41

•

3.334.444.42

Obligations y

»*

•'

•

Portfolio

•

«'

•

385,765,415.37

•

«.«*•««

•

;

•

,/>;

Real Estate

Mortgages

Customers,* Liability for Acceptances •
•

Dividend

Capital Stock
Surplus and

4,005,041.47

3,375,664.67

•

3,488,113.06

Expenses
•

payable January 2, 1947

Other Liabilities

4,105,786.81
12,005,982.42

•

' <

•

4,005,065.47

•

3,036,448.27

•

<■'

1,750,000.00

6,926,011.25

♦

$20,000,000.00
30,000,000.00

...
.

....

Dividend

Deposits

Payable January 2, 1947
-

.■>

•••

Certified and Official Checks.

62,675,449.17

United States Government Securities

6:00

112,675,449.17

600,000.00

1,006,934,771.39

vvyV* ';'*y»y$yV /.*'/: %
•

•

Acceptances Outstanding. . ■ . i v.« #
Other Liabilities, Reserve for Taxes, etc. V

are

stated at amortized

Jan.

Import Credit Problems."
Kreuser, a graduate of the.
University of Michigan, has trav¬
eled extensively in Europe and
and:
Mr.

America.

When

located 4n

•

48,516,244.25

■"*

4,667,041.75

to/

the German
Standstill Agreement. At present,
and for the past 10 years, he has
been in charge of the bank's South

6,130,418.31

concerning

matters

American Territory division.
for /the

Reservations

dinner

bank

$3.00.

■

//-/Ay/\

$38,804,366.87 are pledged to secure public deposits and for
and certain of the above deposits are preferred as provided by law.

Ass'n cf S. E, Firms
Member Federal

accredited
representative, with John E.
Morrison, Jr., Bank of New York,
48 Wall Street, New York. Tariff

should be made through

Deposit Insurance Corporation

Monthly Newsletter
The

news
on

Association

change

Firms

December

Deposit Insurance Corporation

held

at Fraunces' Tavern.
Principal speaker will be Otto T.
Kreuser, second Vice-President of
the Chase National Bank, who will A
address the members on "Export

Of the above asset*
other purposes;

$43,673,508.35 are pledged to secure deposits
public monies and for other purposes required by law.

will be
p.m.

ities were principally directed

63,110,036.19/

13,110,036.19 $

$1,129,958,511.89

Of these,

Member Federal

3,822,823.50 "

A regular dinner meeting of the
Credit Associates of New

York

Member Federal Reserve System

1.502,323.50

Berlin office of the • Chase
National Bank in 1931, his activ¬

$1,149,846,949.44

cost.

Undivided Profits

4,275,000.00

/
'

the

$50,000,000.00

535,448.50
728,823.50

1,704,646,75

Bank

South

LIABILITIES

Undivided Profits
•

{

Of N, Y.foMeel

6,103,694:46
20,749,016.22

Surplus.

Less Amount in

Reserve for Taxes and Other

Loans and Discounts

$7,380,706.14

•

624,021.75

378,042,003.54

•

Capital (2,000,000 shares).

Acceptances

316,145,094.33

19,364,180.57 $1,021,002,334.49

•

iyooo,ooo®yf J?840,146.75

$1,129,958,511.89

$1,001,638,1^3.9^

•

342.073.50

;

•

LIABILITIES
•

264,723.50

Baiik-Cradit Associates

•

■Other Assets

187,651.60

321,446.75

407,896.75 ' A

5,000,000

^1"|vy

•

Other Public Securities

Banking Houses Owned

$1,149,846,949.44

•

Cash and Due from Banks and Bankers

Other Securities
•

Other Assets.

Official Checks

234,996.75
v

3,088,100.00

Ui S. Government

Deposits

of December 31, 1946

3,197,444.58

153,071.60

191,771.75
•

750,000
t

50,502.00
84,306.80
118.499.20

63,540.75

500,000 / ':

of Condition.

43,912.80

55,290.00

12,000,000

290,729,087.77

Mortgages on Real Estate

•

25,513.20

31,418.40
37.551.60

;

148.551.50

250,000
300,000
400,000

.......

105,806.26

150,000
200,000

YORK, N.Y.

...

573,887,112.59

Stock in Federal Reserve Bank
Loans and Discounts

y,/Vy,.v>

$ 250,810,820.83

U. S. Government Securities
.

•

Company

of the
Manhattan
NEW

'**.**

Cash and Due front Banks

Other Securities

'LC V.' '

14,478.00
19,836.00
/

,32,247.75

39,643.50
47,324.25

80,000 ,;U
90,000
100.000
-

of Condition, December j/y 1946

■

«,"• '

7,265,60
9,576.00

25,137.00
.

70,000

5,114.80

6,645.25
9,362.25
12,264.50
18,425.25

has.

Stock

issued

Newsletter,

Ex¬

their

containing

of the association, resolution

the

Federal

Reserve

margin requirements. /

Board
:y-

Volume

165

Number 4558

THE COMMERCIAL & FINANCIAL CHRONICLE

A Model Labor Relationship
:;••

By JOHN B. ALCORN*

•"

Broker Telegraphers Representative
Commercial Telegraphers Union, AFL

Union official

;

describes method of obtaining

V-"

harmonious

labor-P

management

relationships in section of Commercial Telegraphers, f
Stresses mutual respect, an
understanding of each other's '

Union.

problems, a line restraint in not taking advantage of each other,
and a thorough ^ realization that best interests of worker
and employer

intertwined.

are

"streets," for
half

century
the

pursued by the dove of industrial

pattern

peace.-:

that

in g

tion,

vex-

;

na¬

"I believe that

•

'■

tatives

from

Washington dispatch,

Dec.

ment

morning

that

Neither
snicker

^reached

the

(in

our

purpose

straw

Co., principally
j

-r

•

(Direct

tootin'. An

little

and

Offers resolution for

•

;

horn

(Continued
/

«'

v*.

Adrian

"•

Acceptances

*■'"

■

omitted)

•

Transit

7,000,000

Expenses,

collective

♦

Branches

•

; ~^

(MEMBER
i

* A

and

13,781,383

„

are

31,520,002

4,650,000

$ .77,500,000
152,500,000
29,534,614 /

•

259,534,614

•It

$4,977,735,667

♦

„

4,147,064

Total

etc.

Accrued

......

Other

Figures of Foreign Branches art included

;
a

'■£].-\

; ;■

$4,977,735,667

the Dairen Branch.which

as of December 23,1946, except those of ;
prior to the outbreak of the War, but less reserves.

-,v;'

$376,317,672 of United.States Government Obligations and $1,712,449.of other assets are deposited
to secure $318,115,058 of Public and Trust Deposits and for o^her purposes required or permitted by law#< ..4$

$15,975,382

Portfolio - 2,193,999

Surplus. . , . ,
Undivided Profits

15,021,205
2,159,803

•

Dividend

29,280^431' Capital

■

AX ^

Chairman

improve

•

Bills

hInterest, Taxes, Other

6,900,000

with

•

Unearned, Discount
§;U Unearned Income

12,759,386

•

Total

resolution in the Sen¬
thoroughgoing study of labor conditions and .labor legisla¬
tion issued the following state-^
ment on Jan. 5:
stoppages in.essential,industries,
to

$98,257,569)

Reserves fob:

3,346,134

1,093,944,555

International
Banking Corporation
,

$4,664,102,604

Accept.

ances in

■,

Bank Premises

.......

Bankers*

and

101,029,479.

Federal Reserve Bank:

Ownership

163)

page

111.) in offering

The most crucial domestic
prob¬

of December 31, 1946

£££; Less: Own Accept-

186,734,856

........

Other Assets

and labor relations by Senate Committee on Labor. * In statement
be asserts more affective measures to
promote peaceful settlements
of labor disputes must be taken if
public welfare is to be preserved.

lem

securities business.

(Includes United States War

Liability

35,353,712

„

J-oans, and Securities
CustomIrs" Liability for
i

Items

thorough study of field of labor legislation';

Sen. Scott W. Lucas (D.,
ate for a

Acceptances

ances and

Real Estate

Stock

cherished cap-

our

■

2,188,205,130;

without which

Opens
—

Royce Feckler is engaging in the

Loan Deposit

and

Loans, Discounts,

industry

I$1,296,000,976
or

Senator Lucas Urges Labor Study

WIS.

LIABILITIES
Deposits

and

Municipal Securities. '•,
Other Securities
*'

ignominiously

has;

as ours

Banks

State

industry that has been

maligned

regulated

do'

from

Fully Guaranteed)
Obligations of Other-Federal
Agencies *

however, resist the

Due

and

Bankers

MMMMM

temptation

the wind,

•

of Condition

dollars only—cents

U. S. Government Obligations

anything, is hearten-

We cannot,

had

e e

Telegrapher.

•

A. R. Feckler
K MONDOVI,

over-the-

ASSETS

'•.Cash

reportedly unani¬

solemn : ing. \

mi 11

and agree on

♦Mr, Alcorn is associated with
the Detroit office of Goodbody &

,,f j

•

Including Domestic and Foreign Branches

will produce the cure for our eco¬
nomic frustration. The
very fact
that these gentlemen could confer

appear¬

and

Office: 5 5 Wall Street, New York

Condensed Statement

reached

sort of accord arid

some

hailed it

securities, specializing in
those local to the Kansas City and

Head

mous

joint manage-

c om

deal

counter

Manufacturers,

newspapers

16, headlined

labor

R. Hansen,
Werges,
ViceD. A.
Gilstad,

corporate

continue

National

preliminary
conclusions,
by concededly divergent
are
convinced
that
interests. We hope they are only
summary
the beginning of a diagnosis that
action offers the only solution.

declaration

Treasurer; .William

THE NATIONAL CITY BANK OF NEW YORK

represen¬

the

** j

1 »

FEDERAL DEPOSIT INSURANCE

of the Board

CORPORATION)

' i A ""K ',"A

*r xrL

' *

Vice-Chairman of the Board
W. Randolph Burgess

Gordon S. Rentschler

w-i

y", ft) /

V, yvj

PresidentWm. Gage Bradv, Jr.

bargaining

country today is
the relationship between manage¬

procedures and practices, an* ex¬

ment and labor.

cern

facing

found to

Unless

means are

improve these relation-

and

snips,

the

avoid

the

constant

interruption of production caused
by labor disputes, we will never

amination of

the health and

ployees

which

measures

hazardous

CITY BANK FARMERS TRUST COMPANY

con¬

safety of

em¬

industries

;

and the desirability; of uniform
voluntary system of welfare funds;

also

calls

for

of basic structure of labor

while to strangle

Office: 22 William Street, New York
*

to ascertain how union funds are
controlled and accounted
for, how
union officers are

threatened for

( "

f " '

-i

investigation

able to achieve the
goal of
stable full production
economy.
The
recent
coal
strike,
which

Head

•

Condensed Statement

unions,

selected,

the

,v^'

(in

of Condition

dollars only—cents

*, •-

•*

^' «•*#*

of December 31, 1946

omitted)

,l."

•

tc.:'','" „■/

*'«>

most

production and to shut off degree to which democratic prac¬
the- service
of
public
utilities tices prevail in labor unions, and
throughout the nation, has brought» the effect on labor relations of
into

sharp

focus

the

dangerous
nature of the problem. '
It

vitally important that the
Congress and the whole country
know what

are

underlying

the

labor

and

management

find

way out of our present dif¬

ficulties.
soon

basic

friction

this

end

between

and

shall

resolution calling for an

extensive

investigation

relationships
management

into

between labor
to

made

the
and

by the

Senate Labor and Public Welfare

Committee.
;

;

Among other things, the

lution calls for
measures to

hands

power

particular

or.

the

always been
of

cause

and

the

status of

the

have

shall continue to do

support
to

any

punish

come,

The

designed
time

has

however, in the interest

rank

and

find
file

out

unions

of their

leaders, and whether

particular practices, including the
control and expenditure of
money

(Continued

on-page

165)

$ 44,055,505

and

100,677,404

and

•.

1,078,205

Bank Premises

*'668,978'

Securities

Federal Reserve Bank
,

1,938,177

600,000

3,235,614

Other Real Estate
;

Other Assets

113,870
•

•

...

$1.21,902,478

Loan Deposit $8,273,748)
Reserves

Advances

Deposits

(Includes United States War

4,730,068

(IncludesReserve for

Dividend $310,621)
Capital . . . » ...
Surplus
Undivided. Profits • •
,

$10,000,000
10,000,000
8,097,020

28,097,020

2,361,813

$154,729,566 ^WTotalM:M0i

Total

whether

the

LIABILITIES
>

Other Federal

(MEMBER

Chairman

FEDERAL DEPOSIT INSURANCE CORPORATION)

of the Board "■;

Gordon S. Rentschler 1

President
;

•

;

$154,729,566

$11,744,596 of United States Government Obligations are deposited to secure the
United States War Loan Deposit and for other purposes required or permitted by law.

being properly represented by

some

Stock

examination of

terest against the effects of work

Loans

I will not

legislation

labor.

labor itself,
the

so.

man.

Fully Guaranteed).

Real Estate Loans

improve

laboring

Banks

from

1 Agencies.

vigorously supported progressive
legislation which would

Obligations
-

labor

Due

(Direct

manage¬

champion

and

U. S." Government Obligations

individuals

protect the public in¬

Cash

I have

ASSETS

the

ment.

are

reso¬

identified with labor

reasons

possible introduce in the

Senate

the

concentration

War¬

Walter

Richard

welfare.

that there

reason

common; the latter

many

Presidents;
Secretary.

trading department.

trading depart¬
ment, established in 1938, with
Eldridge Robinson in charge, will

investment

Anderson,

and

ship,

must be a way to persuade man¬

President and

]

outstanding

each

Association

good

agement and labor that they have

to corporate stock and bond

The

•

are:

Gouchenour, Jr., President;
Irving J. Rice, Executive Viceren

vf~ r "'i/'

knowledge

our
•

caused two
John B. Alcorn

The former

ing in

The officers of the firm

municipal

underwritings and distribution in
the future. Up to this time, he has
been devoting most of his time to
the

MINN. — Irving J.
Company, First National
Building, has incorporated.

Bank

com¬

There is no intention here to de¬
tract from the high purpose that

men

something in

Rice

while
Hayward H.
Hunter will devote more

(Pete)
time

since that time. George K. Baum
& Co., Inc. will continue the op¬

"American United States Chamber of Com¬
Way," great emphasis is placed on merce, American Federation of
"The labor question."
Labor, and the Congress of Indus¬
trial Organizations to undertake a
Rationalizers
are
patiently
searching for the answer and the meeting of minds on an acute
extremists vow they already have problem so vital to the nation's
it.

ST. PAUL,

who has
incep¬

department,

about five years ago and has not
been
with
the
associated
firm

general

St. Paul Incorporates

McLiney,

pany as manager of the

business prac¬

ten years prior to that
Bernheimer withdrew from
the firm and moved to California

tion, will continue with the

time.

■

are mow in

position to put

deter¬

the

George

tically

eration

wire
to

Irving J. Rice & Co. in

of corporate stocks and

been with the firm since its

Warren,

-.V.

to work."

mined to scut¬
tle

■,

lead¬

ers

bewildered

Edgar

quip ment

seem

ponderous £ points

bonds.

■

bottle

the

■••••.

all types

ment:

standard

and

Mr.

continue

win

will continue to

change in its
corporate
name
to
George • K.
Baum & Company, Inc.
The firm
was originally established in 1928
by George K. Baum and Earle
J. Bernheimer, both having been
announces

Private

markets.

maintained to New York, Chicago,
Los Angeles and St. Louis.

municipals, the firm
participate in the
underwriting and distribution of

in¬

Baum, Bernheimer Co., 1016 Baltimore Ave¬

nue,

southwest

connections

Oklahoma

MO.—The

times,

CITY,

firm

di¬
organzation,
continuing
practi¬
Labor; Department's
cally the same pattern that has ex¬
Conciliation Service, closed
the
deal
with this; consoling state¬ isted; since its organization. Jn ad¬

large- sized
i

KANSAS

rector of the

when' ;>• the

aspirin

four

revealed to

were

are

today attempt¬
ing to design.
In these

After

nation's

leaders

vestment

in the investment

It may come as somewhat of a
surprise to learn that, of all places,
AFL union has functioned in "Wall
Street," and a number of other

almost

participating in the un¬
derwriting of general market mu¬
nicipals and specializing in underwritings of Missouri, Kansas and

George K. Baum Co.
|J

dition to

Firm Name Changed to

-.^7;A'.:

-1

141

Lindsay Bradford

:;%i//;:

THE COMMERCIAL & FINANCIAL CHRONICLE

142

Inc.

that
cooperation of road equipment, etc. Purchasing
investors make possible ..an power exists to satisfy these needs.
investment service that is a real War savings will pay for demand.
help. Shares held by the-.organ-, The political atmosphere is more

states

H. F.

many

ization

divided into 22 classes; favorable
representing a diversified been the

Developments After Wars

Valente, Vice-President in charge -of research'of Dis¬
tributors Group, in the investment management sectiori of the annual
.

Frank

report of Group Securities, Inc., tells of a study of business develop^
ments after every war in America.; First, the end of the war, and

business

second,

hesitancy;

some

dominated by

activity

consumer

than

Boynton Named j

For NASD Chairman

has

WASHINGTON, D. C.—Herbert
F;; Boynton,. of H.. IF.-, i; BoyntonV&
continuously managed investment; rTHe public has .demainded1 a res^
Either one or a combination 'may toratioh; of free enterprise.; *} All CO., Inc., New York City-, has been
be selected in any way JtbvmeM- that points to good times. On; the
different; person's needs^Thus; .other^harid • labor Headers "*l have
-there is a certainty-.of an| i$vest * "been: able^toycreatej a monopoly
merit portfolio for- each arid eVeiry ih?restraint : of trade, and' a" new
requirements
found;;of- wage: increases^would
Extra dividend's nre paid out/qf create: difficulties.
profits,
representing
additipriAl
expressed,^ iwihis(
spending -power — or these; funds f^-'f
may be > used for j buying
-mofe firticle:{da not necessarily at any
time coincide with thoS'e: of the
shares,
Extras will, When /prag/
Chronicle. iThey are presented as
tical, be paid in the'final quarter
each

By JOHN MARSH

business

are

Thursday, January 9, 1947

case

for

many

years.

goods replacement; third, readjustment; fourth, prosperity and cap■
~^ital expansion. /The report points
out that industries now having the
greatest influence in determining
whether

RAILROAD

'*"'

consumer

%goods index would be "buildings, automobiles,, and
,

durable

slight consequence.

goods make the'probabil¬

Goulet&Sfein Is

;.r
readjustment periodva
'V
i^
;
4
Herbert F.'Bpynton
Wallace H. Fulton
short one;
1947 should f, see^ipfn
Important Considerations
7>.Y •y.U •''
-N
r^v;.
-E 'J- ;
In their digest of economic de¬ portant steps toward a perioa;qf ;f;f Goulet & StCin has been .formed
nqmiriafed v'as-? Chairman: 'Of ^ the i'
with offices at 27 William Street,
velopments
Selected > American prosperity.
Board df Gbyerhdt^ of the Nation* &
New York City, to act as dealers
Shares, Inc. considered the fol¬
ah Association of Securities PeaK.
Money Makes Money~But^
and brokers in mining, oil and
lowing / items
important,
arid
exs, Inc., for 1947, ^according to ad' Only When Wisely^Invested.V industrial
securities; real estate announcement .made by the As*;
quoted the President's Council of
This is difficult for many; a" pef-,
Economic Advisors as expecting
^nd' • whole mortgages; eof gariiza- sociation's office here today/ H L.y
son who ftiight do bettericould hi®
trails Ipid'stockj^HhYdstm^t .^The r following vwere-'nominated
at moderate temporary dip in 1947.
This may be averted;, by courage- put savings in a Mutual Fund such trust;issues, and stbcksv^em6V^d
as Wellington.
"Wellington News" from the New York Exchanges, a^^Vice^Chaifniei^1 E^'Raymdndv;
bus and sensible l^bpr action. And
Billett, of Kebbonf McCormick & ;
should we run into a mihTreces- poses this question r Haye^you 'd j; Partners are William F. Goulet
C6.; - Chicago; Johh
Shober/ of;
sion fundamental conditions are program? Or a substantial amount ahd^rving; Stidlri. Mfi^yGoulet; was
Woolfolk, Huggins-& Shober, New of* idle cash? If you

ity of

■■.;•.;■ //

• ■

of prosperity are in a strong
those of the author only.]
of 'the year.
: ;
position. They are durable goods.
.——i'
Shortages, plus the demand, for.
For this reason a decline in the

SHARES
.

will

year

EQUIPMENT
;■

1947

not

Group Securities, inc.

our

M.-.i

Formed in New York

•

♦

'■ i'a*':

•

••

•

*1'

•

■

A CLASS OF

/HCURITIES.W

A PROSPECTUS ON REQUEST

sufficiently

want/to 'irir.

strong
to
suggest
of high production,
full employment, and purchasing
ahead. The President's own fore¬
cast was included namely.
"No

from your Investment dealer or

some

Distributors Group, Incorporated
63 Wall Street, New York 5, N. Y.

'47 depression

Among

were:

if we work."

other
opinions
L. McCaffrey;, Prgsideht

International

thinks

Vest it, your

timing may/ be/slriw"
and. you mdy f[nd„,your^lf;pbiiy^
ing on top of the;market.'HBy jilaOr
ing moneyin: a. well 7 b&lanced,
well managed Fund you i may be;
sure of a regular dividend.t Well¬
cited ington has paid for 17 yearsJ*>vl;?

years

'.'prices

Harvester,

•

your

investment dealer,

who, $7

} of manufactured

research

securities

-r

•

Share Distribution/; // > ;■

corporation

120 BROADWAY, NEW YORK 5. N, Y.

Sfemt3c;^6i:fbr;l2;.Y0aTs^
%l-* '* "f /

the

Commerce, con¬
thought that
the

the

dividend dollar has lost pur¬

the

chasing power in " the same ratio
has the wage dollar.

/./The
in

living costs appeared to A. P.
: of - GeheraT
Motors As an

Sloan

economic

He' thinks

absurdity.

"Today labor has become a mo¬

nopoly and something is now go¬
ing to be done about it."

A Diversified

The Lord-Abbett

j" i

In Palm

holders

Group

Business, Outlook.

>/ i

seen

stone

the

the * Key¬

by "Keynotes" of

Company of Boston

whole bullish;

are

^They, however,

the favorable
enormous

backlog of deferred

needs

construction

Securities, houses,

finds,

one

requirjed to

for

plant

new

machinery,

and

household equipment, rail¬

continued

;

local investment dealer

tions

sales are anticipated.

.survey

execu¬

shortages- that have been ;
completion of firiished
goods.
Industrial production Is
expected to rise to a new peace¬
time high in 1947.
/ "As
consumer, / resistance/ be-"
comes more evident and competi¬

tion becomes keener,

to, ea§e

sized

delaying

re-

by the

„

and

Inc.

York,

/ A cross-sec¬
of
nine

tion

the increasing

to reduce prices will
bring adjustments in various in¬

pressure

' '

Thomas

Miley

dustries from time to time and it

and

;

////://////'W

Applications should be in writing only and.should // /
give*'a detailed -account of: <1> age -and marital status/A/:/
(2) education;;(3) business experience/ including accurate*///H:V
description of affiliations, specific duties, and approximate! /
earnings; and (4) picture, if convenient."
*
<"'''*]*
,

The
50

•

Keystone Company of Boston
Congress Street, Boston 9, Massachusetts

of the

are:,

textiles, foodstuffs, printing
publishing, pharmaceuticals,

•

year.

turers will

and. steel products,", paper
products, furniture, leather prod¬

to"

radios. //H
principal feature of the
reports received was the almost
ucts and

indication

that

devote

cutting

tion of their finished

."The

unanimous

-To combat these evidences/
manufac- /

of consumer resistance,

more attention/:
production costs and
$ obtaining more efficient distribu- \

iron /

•

/ The

busi¬

survey

consumer

products."/.'V

indicates that signs
resistance have al¬

ready appeared,
particularly in
hampered by - another luxury lines (such as furs) and in
round .of labor disturbances," said lower-priced items (radios) where
Thomas Jefferson Miley, Secretary increasing supplies of .merchandise ,v\
of: the Association.
."The - survey, are now available/ Some retailers ,
have' large inventories of
rela¬
also
ness

will continue to be good.un¬

less-it

/, *; • //''•O

Street. Boston 9. Mass.

expanded

In .some in-*

by mid-year in: certain categories

me-,

Commerce

two

James W. Bridges, Personal

50 ConjrjM

limitations,

dustries, notably paper and steel,
supply will catch up with demand

conducted
among

and

city's leading industries is is believed the general price level
represented in the survey. /They will decline by the end of the

are

Address:

Keystone Company
of Boston *

-result of. abandonment of%

New

Representatives

All applications-will be treated in strictest confidence.

pour

"As ;a

spot

Jan.

The

•

'burdensome/government regula*' ;

essential;":

•/.

from

■

prosperity
in
1947,
ac¬
cording/ to a

r;V

■

Barring major interruptions due ta strikes or similar causes, New
so-called "small businessman" is looking forward to a year

opportunities* to become- associated/ ■ / ;
with our wholesale distributing organization in established
i v
territories.*; The work requires extensive traveling, and .. /;./•while previous wholesaling experience is desirable it is not
J.

be obtained

dium-A,

Wholesale

Quail/ Quail & Co.; Davenpbrtw i

Industry
Association of

There

map

York's

side

Keystone Custodian Funds

Prospectus

Boston;; June

Commerce and Industry Associationiof New York reports result
of surrey of city's leading industries. Fear of labor disturbances
^continues, and there is/more:cautious buying and - more stress,, by
purchasers^, on quality merchandise; 4 Paper shortage and printers'
wage demands hamper publishing industry.

present both sides of the situation.

FOR

unos

Co.,

Small N. Y. Businessman
;

leased

CMICAQO

ian

brook

Jones/ Atkinson,- Jones &
Co.; /
Portland; Robert S. Morris, Robert <1
S. Morris & Company, Hartford;

Expects 1947 Prosperity loi

S, NY*.

GustoJi

;

businesses
.

York; Hermann' F. Clarke, Esta*

Beach, Fla.

jRyan.-r;

for. ;19^7 as

tN<ORfO«AUD

f.iOi ANGtlli

HareyA^/Beebe,vHarrimari/ Rip*^

f;p^M:BEACH/FL

tives

NEW YORK

{■$ .*

-will

Cup has ibeeh

Investment prospects

accumulate

In its 13th annual report " to its

WAtl STREET,

Committee was

Atwill & Gort Opens Branch •ley^&?*Cp;/:Hncorporated,?;Nevfl:

awarded-'to Bob de Graffenried;
I -v.: ;'- ;- • •;;
- 7* -"-.'I ;>l
Both Sides ,of the

demand. Years will

Continuously
Managed Investment

Vice-presi¬
The eastern

welcojne thee news; of his prpmo^
tion.
•
;
*|

share'

-elected

where he is well khowri

area

thought that: a wage in¬
is justified by.an increase

crease

was

dent of the company.

Report: ignores ^ the fact

Nathan

'■
...... :

„

tributed

HUGHW. LONG & CO

r
...

The Nominating

composed of the following retire]
ing NASD Governors: Peter Ball,
Ball, Burge &-Krdus, Cleveland;^

■

U. S." Chamber of

Sherman $c

inghouse Electric, commented on
Lord,- Abbett & Co.,: in /their Coy} ha^ fopened a> branch office
the tax carry-backs of 1946. and "Current Information for Distrib¬
•at;>233 South ^ County Koad; until Norman Nelson, Piper, Jaffray
>
stated that no such operations can utors"
announce
that ' John 'L. the ;
management; of 1- Ralph j T. Hopwood,> Minneapolis; John; J.
be counted' on to offset losses in
President W. K. Jackson of

Prospectus from your Investment Dealer or

St^injW^ with Lr.

Schmitt

Bond Fund

BroadWay, -New -York. Mr-

The

1947,

Manhattan

Board ^ of * Governors
oi }/
NASD-wilT vote oh; these nominal
tions: at a meeting - jah; 20.
: ^ \ .•
v t

whole;mortgages

Shumai^^pf ||

J.r Robert

real; estate;and;
at' 32

sumes/resistance.
are not
buying, the things they"want be¬ they distributed $7 a
'share.^This
cause prices-. are too - high." V Un¬
was more. or; less itt
;theJnaturerpf
fortunately wage increases force- Capital gain and of a
norr-recti^.
prices up. Moreover it is now rent nature"; 'so it'may advantagef
necessary to, build adeqitate re¬
ously be re-invested. •
\.£i
T J--;?;-*
serves." "
; .
^.
*■
' '
J
\ I
G. A. Price, President of West- Abstracts* * '
■
J J '**: J f

Shuinan, Agnew & Co., Saiv Fran-i ;
Realt^jUiquidatOr sf• Inb;fpf "Ydh-: cisc'o, was nominated for Treaskers;; he was Vice-President of urer; and; Wallace: H;/Fixltdn^of ;;
Muth and Maxwell, Yonkers, until
Washington/was^ again named Ex- ;
1943;-and ^subsequently ^rehducted
ecutive Director^ by the' Nomin* ;
h^ ' oiyh ; business asr a dealer In ating Committee; '. '
"
•''t /'{h

; iv>~

Orleans.

\ It must have been ,a\ nice; sur¬
Co.ffbr ;3W years, and prior there-»
prise to shareholders,in;the State Id^ohducted; Irving - Stein & Co.
Street /Investment
Corp. ; when 4
and ;"was^yntlf3V^

„

National

from

goods are building up.a real - con¬

Trdtptcfut^ upon request from

'■

previously President of W. F; Goulet; <&! Co., Inc., and was with

shows/ however,;, that there

;wlll>be more cautious buying
more' ;V stress / by / purchasers

qualitymerchandise.

/ '

and tively high-priced.items which can/
on; be; spld only at. reduced prices as '
///(Continued on > page ,161)
.

iVolume

165

Number 4558'

THE COMMERCIAL & FINANCIAL CHRONICLE

ness

Worth Probst

Reports Changes in

To Address NACA

tion,

National Debt Ownership
(Brooklyn- Chapter)
February, 1946 that

N« Y. Reserve Bank traces
movement from
'resulted from redemption activities of the
Treasury.

t
'

The

Brooklyn

Chapter

the

control

For the past

ter

closely iden¬

well

Probst

and

the

served

Estimating

preparation
the

Director of Publications

being

active

the

Rochester
Commerce.

Chamber

o£

Provisional

Now Temple Securs. Corp,

demptions of the Federal debt and
the: effect thereof on .relative

holdings showed a small net de¬
cline of $200 million, a indicating
that, in contrast to the heavy open
the subject of his address will be
business con¬
market
purchases
of
previous
"Straight., Line
Budget
Pro¬ nections, Mr. Probst taught at the
years, the weekly reporting banks
University of Rochester. He has
did not fully replace the Treasury cedure.";;'^:.,. :•:/vv';\ .v'•
>'>•/'
addressed many organizations on
bonds lost
Mr. Probst was educated at St.
through retirements,
the subject of Budgetary Control.
owing to the pressure on their re¬ Lawrence
University where ha He is a member of NACA and is
serves exercised by the redemp¬
tion program and the expansion graduated with a" degree in Busi¬ currently serving Rochester Chap¬

amounts of the

Public Debt held
by the commercial
banks
and
others. Of a total reduction in the
debt

approximately $23.3 bil¬

lions, the weekly reporting banks
cities show that
they have

in 101

accounted for about $12 Vz billions
of this
amount, while now mem¬
ber banks and non-bank
investors
accounted for $9V2 billions.
The

Federal Reserve systems
holdings
have shown slight change,
i The text of the
Federal Reserve
Bank's report follows:
.

Officers

troller of

alternative* outlets

particularly

credit,
loans.,

for

c u s

tome

were

reduced from 24.4

to 2.2 billion.

„

The effects

ment

the

retire¬

program

debt
the

'? major

classes of

investors, as far as they
can be determined
from currently
available figures, are shown in
the
accompanying chart. The data
represent the total interest-bear¬
ing debt, less special issues which
are available to
government agen¬

cies and trust funds
only, tax Savings notes, and Armed Forces
leave bonds.
Savings bonds, the
issue of which has increased
about
$1 billion since the end of Feb¬
ruary
to the

(thus providing

some offset

retirement of public

ketable

issues);

are

mar¬

included

the data.

lic marketable

issues

the

cor¬

responding period and well in ex¬
cess of their probable holdings of
iredeemed securities. Sales of
gov¬
by these banks
for the purpose of
adjusting their
ernment securities

% reserve positions, principally to
meet the losses of funds
resulting
from the redemption of
securities
held
by
the
Federal
Reserve
■

from

J offices- in

Building.

; the; McBirney

THE

utable

primarily to the redempy
tion of large amounts ;of
y their
short
term : securities,
together
with substantial sales of such
and

to obtain heeded

PHILADELPHIA

se|

reservesj

was

Only secondarily the • re¬
sult of purchases of medium term
bonds.

NATIONAL

The decline in bank hold-:

BANK

iiigs <5f government securities also
v^as primarily responsiblefor ' a
reduction

Idans

and

17 % in their total
investments since the

ejnd of 1945-

(^paantzetf.

J<903

Toward the close

of
1946,
government
securities
had fallen to 64% of total earning

assets, against 72 %

a year I.

previa

OUS.
,

I Despite the

fact

that

cash

re¬
;f

demptions of Treasury obligations
held
by the Reserve ' Banks

amounted

to approximately $4%
billion, the holdings of these banks

haver risen

since

Feb.

Federal

withdrawn

RESOURCES

Cash and Due from Banks

from

^hem;: by
the Treasury to redeem securities
held by the Reserve Banks.:
Thus;
While the redemption program in-r
vplved recurrent pressure on the
reserve

Statement of Condition, December 31,1946

Reserve

were

-.J

about \$200 " million
27.

security holdings securities, directly or indirectly
of the
weekly reporting: member from5 commercial
banks,; provided
banks in 101 cities declined almost
the latter rwith more funds than

$13 billion between Feb. 27 and
Dec. 18, an amount
equal to more
than half the
redemption of pub¬

engaging in the securities business

j The decline in the government

purchases of about 4.7 billion

iy Government

TULSA, OKLA.—W. F. Bush 3s

security holdings of the weekly
reporting banks brought about a

February. In that period the
Treasury's deposits in War Loan curities
accounts

positions

7- 7

7- 7 $224,584,826.91

U. S. Government Securities

330,341,131-23

State, County and Municipal Securities.
Other Securities

member

12,209,153.20

>36,236,912:13

....

•

99,407,174.62\

1,893,974.98

Accrued Interest Receivable

serves, because of the ready avail?
ability of Federal Reserve preHit.":
All other investors, including

Loans and Discounts

banks, the banks had little trour
ble in meeting all needs for
re?

.
.

^Customers' Liability Account of
Acceptances

4,.881,913.33*

•Bank

nonreporting member and nonmember banks,' as well as nonBanks, account for the difference. bank
investors, show a decline; in
About $7y2
billion, or close to their holdings of
government se?
60% of the decrease in
reporting curities of about $9^ billion
dur?
member bank government securi¬
ihg this period. It appears that in
ties, consisted of certificates of

Buildings

1.00

§709,555,087.40

indebtedness.
counted

for

Treasury notes

ac¬

4.8

billion, or more
than one-third, and
Treasury bills

for one-half billion dollars.

Bond

this group nonbank investors

re¬

placed part of their losses by buy¬
ing other, Treasury, obligations in
the open market.

Capital Stock (Par Value $20.00)

Changes in; the Ownership of the Public Debt*
(Cumulative weekly froro February 27, 1946)
;

Surplus

•

DOLLARS

Reserve for

♦ 5

FEDERAL

Dividend

RESERVE BANKS

Taxes,

•

36,000,000.00

•

7,364,252.63

Undivided Profits

Millions
Of

2,997,479.49

875,000.00

179,306.52

etc

(Payable January 2,-1947)

Unearned Discount and Accrued

ALL

Interestv.

Acceptances
yf

$14,000,000.00

$8,919,077.39

Less Amount Held iri Portfolio
3,112,946.30

OTHERS
o,,? J

(' - *

?/<,' •

y '

5,806,131.09
v

Deposits
United States

TOTAL

All Other
WEEKLY REPORTING %
BANKSIN f01 CITIES

Treasury

Deposits

$. 12,756,031.38
*

629,576,886- 29

<S42,332^917.67

"§709,555,087.40'

;

APR ^MAYru,JUN

Philadelphia, Pa<
^

JUL j^AUG

SEPOCT -NOV

Total interest-hearing/ debt;,
exclusive; «• of*special issues,
Ajrinedr

are

W. F. Bush in Tulsa
•

end

corporation

December redemptions brought
lengthening of the • average maa
total of
approximately $23.3 tdrity of their government secu¬
the amount' of called or
rity portfolios. This was attrib¬

the

bank

billion

matured marketable
Treasury se¬
curities
retired
by
the
United
States Government since the

Bausch & Lomb
Optical
*
Thomas
H.
Temple,
President;
Company.: At present, he is op¬
Probst,
head * of
erating his own professional or¬ Rudolph S. Farrar, Tavel Pickard,
Associates, which
Robert R. Read, Vice-Presidents;
specializes in the installation and ganization, the Worth Probst As¬
Ray, G. Martin, Secretary
and
supervision of budgetary controls sociates, installing and supervis¬
Treasurer; and Mrs. V. K. Herring,,
ing Budgetary Controls.
K
will, be the principal speaker and
Assistant Secretary.
In addition to his

•.

member

Mr.

Department
of
the
Telephone and Tele¬

American

design,-installa¬ iri

Budgetary Control Systems.

The January issue of
"Monthly Review of Credit and .Business Brooklyn."
:
Mr.. Worth
Conditions", of the Federal Reserve Bank of New- York
contains; a
section dealing with the recent
Worth Probst
re-3>

with

NASHVILLE, TENN.—The firm
Reports little ^ National Association of Cost Ac¬ graph
name of Thomas H.
Company.
Temple Com¬
change in Federal Reserve holdings and largest reduction in hold- v countants will hold another in its
He was Budget Director
pany,
Commerce
Union
Bank
for the
ings of commercial banks. ;Sees these hanks lengthening average > series of technical sessions on
Taylor Instrument Optical Com¬ Building, has been changed to
Wednesday evening, Jan. 15, at
maturity of their government bond portfolios,
Temple
Securities
Corporation.
the Park-Vanderbilt Restaurant in panies and Assistant to the Con¬

;

Administration.

17 years he has been

tified

DEC:

Savings notes,V

Mtmber of the Federal Deposit Insurance
Corporation

Thursday, January 9, 1947'

THE COMMERCIAL & FINANCIAL" CHRONICLE

nificantly since 1942.
As money
incomes
increased,
while ••-rrerits

Roy Rodabaugh V.-P.
Of Riser, Colin Co.
Rodabaugh

Vice-President

—

director

and

of the burdens incident to such dif¬

that there exists a serious physical

Although
complete figures are
not available, it is reasonable to
conclude from an anlysis of those

1940 standards.

obtainable, that
growth in the domestic population
of the United States, that is the

magnitude we are experiencing
today can be explained only by
reference to other things.
•

Roy
prevalent today. The logical con¬
elected clusion to such thinking is that figures which

IND.
has been

INDIANAPOLIS,
R.

(Continued from first page) ">■'
cause
of
the
war
seems
quite

by
Difficulties of the

dearth of housing as measured

are

were
held constant, people were
discouraged from economizing on
; t
•
the use of rented housing quar\b..' J1
ters.
Families
demanding
one
room before the war began to de-, V
f;;;. .

mand

two

their income

rooms

increased
and their
rents were
Shumaker, Inc., ficulties should be borne in pa¬
Circle Tower, to succeed Fred I.
Family units deAccording to the estimatess of held constant.
tience, and indefinitely, by those number of individuals within our
Shumaker. Mr. Shumaker, one of upon whom they happen to fall. continental borders, has closely the U. S. Department of Com¬ manding two rooms before the
war demanded three rooms, and
the founders of. the firm, resigned If
they should happen to fall most approximated the increase in the merce, the "disposable income of
so
forth
on
up
the line.
This
effective Jan. 2 and will devote heavily upon the returning sol¬ number
of
occupied
dwelling individuals," in 1946, is likely to

Kiser,

Cohn

be almost double the 1940 figure
the affairs diers and their families, that is units,
*
of $72.9 billion,
As the dollar in¬
which firm unfortunate, but unavoidable. > •
It; seems: probable, therefore,
is engaged in the operation of real i This callous attitude is not well that the ratio of the actual num¬ come of an individual or a family
estate and concrete construction supported- by Census figures. The ber of rooms (in all types of hous¬ increases, that individual, or fam¬
and allied lines.
Census
Bureau
estimates
that ing untis) being occupied, to the ily, is very apt to demand more
r
"

his

time

hereafter

■

of Shumaker Brothers,

•

occupied dwelling units"
en¬ "total
gaged in the investment business in the United States increased
for over 30 years and during the from 34,855,000, in 1940, to 37,600,last 20 years has been affilliated 000, in 1945, an Increase of 7.9%.J
with Kiser, Cohn & Shumaker, A further increase, no doubt, has
been experienced in the past year
Inc. and its predecessors.
Mr.

Rodabaugh

has

been

continental

borders

Especially is this so, if
price of housing (as in the
of rent-fixing) is arbitrarily
kept from rising, as income rises.
Rent ceilings on residential quar¬
housing.

within our
has, during

number of individuals

the

case

the past six years, decreased very
slightly, if at all.
Our current

difficulties, therefore, cannot be I
explained away by a contention

ters

have

been

raised

but

insig-

"
//

of expansion went on
painlessly and relatively
unnoticed during the war years.;; life
Men were being drafted into the "
army
in huge numbers and, in
many cases, being sent overseas.
Physical vacancies were thereby
created, which were promptly ab¬
sorbed by the expansion process
:
noted above.
The problem arose „>
when soldiers returned and began
to search for quarters. They found
^
that those who had occupied the
■
dwellings - during - their absence#^ ■

process
rather

immediately-began to-exercise a*ii
form-of

"squatters' rights," and in
refused to move unT

evicted.

less

cases,,

many

therefore

in-

teresting to note that in the light
of such events, the proponents of

the Administration's rent program

that it benefits the veteran
It is un- >

argue
to

the greatest extent..

fortunate that the leaders of vet-

do hot yet perceive the fal-

erans

WEST

MONROfc

lacy in such an argument,

A Waste of Housing

]

* -

The present situation can be
characterized by overcrowding on

hand, and a "waste" of hous- »
ing facilities on the other, i Some j
people have much more housing ;
at their command than they did ;
before the war. Others have much :

one

less.The

veterans

;

the

fall, * in

;

jhain, in the latter * groups : Their. i
usual, ^are, of housing swas "taken y§
over"'during their absence: by in-, :
dividuals-, who are now encour- C
aged by rent ceilings not to yield I
any of
the housing which they ;
"took over?': The housing stand- :
ards of the :;-"stay-at-homes" ; in-.:
creased during the war. v Now, by ! ;
virtue of rent ceilings they are ;
able
tomaintain- their
higher
standards at the expense of the >
veteran class.:,The present uhbalanced situation can be adequately
-

explained only as the logical
suit of the imposition

Directors

Statement of Condition

JAMES M. BARKER
Chairman, Allstate Insurance Company

December 31,1946

Executive Vice-President

President, American Steel Foundries &

Cash

Hand and Due from Banks

U, S, Treasury

•

Municipal Securities

Liability

Customers'

Letters of Credit

Stocfe

HOWARD W. FENTON

21,089,231.87-

Hall B Ellis

600,000.00

Capital
Surplus

•

ii
$ 25,326,659.91

6,588,32519

General Contingency Reserve
Reserve lor Taxes, Interest, Etc.

3,672,218.55

Time Deposits

A. H. MELLINGER ! -;
Telephone Co.

Director, Fairbanks, Morse

R't

GUY E*REED

459,006,255.28

39,079,799.23

$496,623,829.06

Total

$36,850,000 of United

nicipal Securities

are

States Government Obligations and $300,000 of State and Mu¬

pledged

■

$11,213,100.02 of United States Government
Trust Deposits, and to qualify for fiduciary powers.
'

to secure

Deposits and $24,302,615.80 of

#■

•

Vice-President

■

Federal Deposit Insurance Corporation

expansion

program

occupying

MaM

rooms,

and

At the

same

ers

President

oc¬

hrice

four

satisfied
so

with

rooms

three

down the line. *%

time, private build¬

would be encouraged to build

units

for rental.

•

Owners of

ex-

isting homes would be encouraged

HAROLD H. SWIFT

put houses once again on the

Co.

rental

STUART J. TEMPLETON
Wilson & Mcllvaine

the

again be satisfied with four rooms.

Vice-Chairman ol Board, Swiit &

roms vwotild

: five

would

WILLIAM P. SIDLEY ■;;

in¬

Rent

Many families

1940s.

early

Many '

market,

and

improvise

apartments out of already existing

WARD W. WILLITS

Director, The Adams & Westlake

Co.

FRANK H. WOODS
Chairman ol Board,

Member of

•.

quarters.

would throw into reverse

& Co.

Sidley, Austin, Burgess & Harper
,

;

economize on their defor

cupying

PAUL S. RUSSELL

,•7:;-?.,;;

$419,926,456.05

thq

CHARLES a MORSE

12,030,370.13

Credit

Demand Deposits

mands
creases

Director, Illinois Bell

Acceptances and Letters of

aged to

FRANK McNAIR
ViceChairman of Executive Committee

8,000,000.00
5,326,659.91

Undivided Profits

Co.

JOHN McKlNLAY
Chicago V

12,000,000.00

First,

current renters would be encour¬

President, Sears, Roebuck & Co.

Liabilities

general

be, in the main, twofold.

McCONNELL.

F. B.
■

rents

time,

removed

were

The effect of such increases would

john l. McCaffrey

$496,623,829.06

ceilings

probably would rise temporarily.

STANLEY G.HARRIS

President, International Harvester

Total-

Chairman of Executive Committee

1,517,093.66

this

AlBERT W, HARRIS
'■
•
Chicago: ; ■;;; >•

rent

ARTHUR B. HALL

2030,370.13

Accrued Interest and Other Resources'

Effect of Rent Ceiling Removal

Santa Fe Railway Company

facilities, and

quarters available.

rental

President, Atchison, Topeka 6#
h

Acceptances and

the

encourages

rental

FRED C.GURLEY

160,333,154.41

discourages those who might make

Chairman of the Board

14,949,830.02

"waste"

Chicago

111,590,433.85

Federal Reserve Bank

FRANK R. ELLIOTT

61,080,592.98

Other Bonds and Securities
Loans and Discounts

•

Bills and Certificates
and Notes

U. S. Government Bonds
State and

•

ings (i.e. ceilings at levels below
market:, ^values)

$123,433,122.14

and demand

imposition of effective rent ceil-

THOMAS DREVER

Resources

the law of supply

required to understand that th<

MARK A. BROWN

of rent

Only a slight knowledge

ings.

Addre8sograph-Multigraph Corp.

Bureau

of Census, "Housing-

Special Reports," Series H-46, No.'
1, May 16, 1946, p. 1.
;

2 See

Federal Reserye Bulletin,

Octobdr^'4946,-p,

T192.»:^:S^

Volume

Number 4558

165

THE COMMERCIAL & FINANCIAL
CHRONICLE

dwellings.
Investment
funds spicuously absent from the cases .time, because higher rates of oc¬
again flow into the rental of butchers. Immediately follow¬ cupancy permit many landlords

as a
class, refrain from investing
further in property which is sub¬
jected
to • such
discriminatory

would

market.
have

risen

construction

materially

ing

in
instances,

demise of the
Administration^

tentative

the

Office

Price

it is, in many
ceilngs ; on
meat
lapsed,
and
definitely
unprofitable ■ in
the the. ' product
became
abundant
light of current rental ceilings to throughout
the
United
States.
build for rentalpurposes, or to Shortly following the resurrec
improvise apartments out of ex¬ tion of the Office of Price Admin¬
isting
houses.
Therefore,
the istration in the summer of 1946,
years,

•

prises
recent

I elimination
time

of rent ceilings at this

would

tion

{uals

result in

who

already

This

events

would permit thou¬

.living

veterans, who are

they

were

higher than

are

into

now

other channels.'

How¬

prewar years.

ever,

the purchasing

rentals
with

has

the

declined

fall

the

of the

power

This

work.

shocked

Americans

many

ceiling

realizing that

sequence

prices

power

dollar.

For

it may be a
before rent controls are re¬
moved, and the housing market
once
again economically organ¬

this

ized.

makeshift

arrange¬

not

lords
votes

tenants
ests

protect

certain

made

organ¬

relation¬

economic

izations have to, date launched a ships" crystal clear to millions of
campaign against rent ceilings, Americans, and- they could no
which actually work, in the main, longer be duped by all of the
the

bemg

political
are

relatively

power ;

weak

the

bers,

detriment

their

meat,

solved

proceedings. As time goes
and more landlords dis¬

short order.

blind

other

on, more

spot

Once
the

rent

price

then

to-rent"

from

the

inter¬

said

consum¬

the

violators
classified by

conscientious

The

review

directed
the

convicted

the

Service

those

expanded.

the

Board
of

cases

.under

Act

and

persons

all

the
to

If rent controls

lifted,

were

Manufacturers
TRUST COMPANY

nize the fact that meat is not the

many

15%.

Such

lieve

the

Others

increases
situation

;

have

would

casions.

re¬

somewhat.

such

Only

rich

the United

(Condensed Statement

countries

States

Cash and Due from Banks

proposal standards of ; living ; are high is
that increases in rent ceilings be meat actually considered a neces¬
permitted
in cases where
the sity.
'
landlord is experiencing "undue
It is ironic that the American
hardship," because of increasing people should be* shocked into
costs, or complete dependence on economic
intelligence by devel¬
rental income.
Such proposals, in
opments in the luxury product
the main, would justify rent in¬
"meat," rather than by happen¬
creases
based upon the financial
ings in a field such as housing
position of the landlord,; rather which involves actual necessities.
than on the value of the quarters
Economic laws are universal in
he happens to be renting.
This their
application.; They do not
collectivistic argument is reminis¬
apply to one commodity or service
cent of the one presented by the in
one
manner
and to another
United Auto Workers (CIO) over
commodity or service in an en¬
a year ago to the effect that auto
tirely different way. Any fallacy
manufacturers should pay wages
in the Office of Price Administra¬
'

bas$4

close of bitsiness- December :31; 1946

as at

RESOURCES

where

the

made

of Condition

V/.

■

h*b'.dL'

i"v >

U; S;

$> 631,322,810.99

•

U, S. Government Securities 4';

;

1,233,148,318.3L-

Gdyerhmfeht Insured F.; H; A. Mortgages ,\*

'State

and!Murifcipal Bonds

Stock of

federal Reserve Bank £

Other Securities

;

„

* *

J 23,818,427.84 >

2,475,000.00,,

;

V„»

25,938.291.48 ~

Loans, Bills Purchased and Bankers' Acceptances

Mortgages

Banking Houses

Other Real Estate

,475*065,720.56;

."'

;

3,798,274.10

12,180,030.84
.

....

Equities

279,840.25

Customers'Liability for Acceptances

8,145,191.89

Accrued Interest and Other Resources

their financial re- tion
propag$nf(pline is a^mu£l>;
rather than on the value a fallacy in regard to housing as.

11,177,726.40

...

6,903,250.57

upon

sources,
of the service rendered
workers.
The economic

correct

way

the
to

$2,434,252,883.23
MtUIUTIlsj

it is in regard to meat.
Yet many
of our business, social, and eco¬

the situation is to elimi¬

Capital
Surplus

nomic leaders are still indicating
ceilings, not merely to in their
public utterances that
Increase them. The complete elim¬
they believe rent controls should

nate rent

ination

...

Undivided Profits

rent

ceilings would still be maintained.
They do not
permit the release for productive
yet realize that rent ceilings inr
"employment of hundreds bf fed¬ terfere with people getting hous¬
eral workers now engaged in ad¬
ing, and actually prevent many
ministering them.
would be
renters
from - renting
quarters, just as truly as ceiling
Plight of Tenants
prices on meat interfered with
Much concern is professed by and, in many cases, prevented
certain government officials, radio would-be
purchasers
of
meat
commentators, and others for the from accomplishing their mission.
plight
of
the
"poor tenants," They do not yet realize that, in
should rent controls be removed terms of pre-war standards, there
at this time.
Similar "tears" are is no marked physical shortage of
being shed by the same persons housing.
They do not yet realize
for the veterans now displaced by that the current housing "short¬
tenants
exercising ' "squatters' age" is. 'entirely a; monetary phe¬
rights" on the choice rental quar¬ nomenon, which might disappear
ters of the nation.
Many tenants almost overnight if rent ceilings
moved in while the "boys" were were eliminated.
They do not yet
away.
Their ability to hold quar¬ realize that their pity and: great
ters so appropriated is reinforced concern for the tenant class, when
by rent ceilings.
Such controls implemented
by
rent
controls,
permit them to pay rents estab¬ works great hardships on many
lished
in "1942
with
relatively tenants,
and would-be tenants,
cheap 1946 dollars. The~returning while encouraging other tenants
soldier is prohibited from bidding to demand more
space than their
the market price for the dwellings income would
ordinarily permit.
so
appropriated, V and in "many They fear a wave of evictions
cases his hardships stem from that
which might occur, should rent

Reserve for

...

$41,250,000.00

Contingencies

41,250,000.00

36,529,897.62

Reserves for Taxes, Unearned Discount, Interest, etc.
Dividend Payable January 2, 1947 ....
.

119,029,897.62

9,926,985^34

....

8,154,852.14

1,237,500.00

8,706,949.84

fact alone.

controls

Outstanding Acceptances.

Liability
Deposits

Endorser

as
.

ing
of

Meat

Control

causing

extraordinary series of
recently - led
to
the
awakening of millions of Ameri¬

events

cans

the

insofar

the

economics

not

rent

have

caiised, and

$2,434,252,883.23

New York

EDWIN

jr.

City

meat

industry is concerned.
Immediately prior to the time at

public

purposes as

required

permitted by law.

■

Co., Inc.
GEORGE J. PATTERSON

President, Scranton & Lehigh

•

;

Corporation

President, Curtiss-Wright

JOHN T. MADDEN

JOHN P. MAGUIRE

\:'j
■

■

Corporation
HENRY C. VON ELM

•

Vice-Chairman

President, Emigrant Industrial
Savings Bank
■
:
V

■

Chairman, Trust Committee
GUY W. VAUGHAN

Chairman, McRoberts & Teglmeyer, Inc.

*
"

ERNEST STAUFFEN

SAMUEL McROBERTS

President, Dana Corporation
HORACE C. FLANIGAN

President, Home Insurance Co.

President, United Biscuit Company

of America

City

„

KENNETH f. MacLELLAN

President, George A. Fuller Company

C.: RICHARD

New York

HAROLD V. SMITH

Simpson Thacher & Bartlett

•

CHARLES A. DANA :

HAROLD

President, Lambert Company

OSWALD Lv JOHNSTON

■'

Coal Co,

President^ Lincoln Savings Bank,

LOU R. CRANDALL-

Company

President

JOHN L. JOHNSTON J

Chairman, American Home
Products

•

FREDERICK GRETSCH

;

President, Cluett Peabody &

Chairman, Atlantic, Gulffind j,
West Indies Steamship Lines

ALVIN G. BRUSH

HARVEY D." GIBSON

EDGAR S. BLOOM

C. R. PALMER

President, Gerli & f-o., Inc.

Chairman, TheSperry & Hutchinson Co.

•

PAOLINO GERLI

BEINECKE

-t
'

President, John P. Maguire & Co., Inc.

ALBERT N.

of the Board

WILLIAMS

President, Westinghouse
Air Brake

Company

realize

truth that rent
ceilings, if low
enough to be effective, unneces¬
sarily
reduce
the N number
of

DIRECTORS
EDWIN M. ALLEN

President, United States Lines

are

250,004.00

2,286,946,694.29

funds and trust deposits, and for other

IQHN M. FRANKLIN

.•

...

■■■.

■

...

Vice-President

evictions. They
the
simple

numerous

yet

controls

...

abolished, while fail¬
that

see

themselves

United States Government and other securities carried
at 478,076,362.69 are
pledged
tosecure U. S. Government War Loan
Deposits of $44,478,352.98 and other

Case

......

Acceptances and Foreign Bills..

on
.

dwellings available for

rent.

Principal Office: 55 Broad Street, New York City

BANKING

OFFICES

GREATER

NEW

YORK

which the Office of Price Admin¬
istration

entered

its

temporary

price
ceilings
on
meat
in effect, and meat was con¬

grave.,
were

;

•

•.

Position

.•

Landlords

The
argument that rent con¬
trols should not be lifted at this

•

•d

.".European Representative Office; 1, Cornhill, London, E. G. 3

Member Federal Reserve

System

•

ex¬

Selective

it deems deserving

executive clemency."

an¬

landlords would continue
necessity which American house¬
renting; their property,
rather wives and their men folks believe
than putting: it up .for sale.
it to be.
To most of the two bil¬
It has recently, been proposed lions of people who inhabit this
In some quarters that rent ceil¬ earth, meat is a rare luxury to be
ings be increased, on. the average, enjoyed only upon exceptional oc¬

persons

"recommend

low.

Asso¬

11,000

public
housing

mind is eliminated the
cover that they can more profit¬
ably sell their property than con¬ problem can be solved almost as
tinue renting it.
They, therefore, rapidly as was the meat problem.
place it for sale and take it off
For the purpose of scientific
the rental market. Evictions fol¬
analysis,: it is necessary to recog¬

Bar

are

Government

amine

will

that

dent

disappear
and

American

by
the
Amnesty Board may result in
some
regaining such civil rights
as voting
privileges.
The Presi¬

political

newspapers,

the

objectors.

"dwellings for let" columns

Other

cases.

A White House statement

only about 800

brought to bear;
will

ciation.

eliminated, "wanted-

columns

violation
of the

dent

by the

controls, just

proper

Amnesty

Board, according
an
Associated Press dispatch
from Washington, are James F.
O'Neil, Chief of Police of Man¬
chester, N. H., and Willis Smith
of Raleigh, N., ,C., former Presi¬
to

soon,

controls

the

pressures will be

mem¬

their

served

law

members

best served by the eradi¬

rent controls

sense

•

of such

that

would be best

cation

the interests of meat

draft

land¬

tenants and would-be

realize

ers were

moment,

being exploited in the

tenants.

elimination of

psuedo-economic propaganda of that they are being forced to ac¬
the Office of Price Administra¬ cept less than
market values for
Once this blind spot in
One may read almost daily of tion.
the use of their property.
The
pathetic eviction proceedings oc¬ public thinking was eradicated,
logical consequence is that they,
curring throughout the nation. the people brought pressure to
Rent ceilings are the main cause bear and the meat problem was
to

lords,

sensitive

are

the

;

however,

of the veterans'

none

outnumber

fold, and politicians

many

necessarily

the American people are
more interested in
obtaining liv¬
ing quarters, than they are in the
general level of landlords' profits,

that

Tenants

three-member

Board, headed by former Supreme
Court Justice Owen J.
Roberts,
was appointed
by President Tru¬
man on Dec. 23 to review
11,000

political
long time

yet

them from the for the same reason that they
ments
in trailer camps and the evils of inflation but merely "pro¬ were
more
interested in porklike, to re-enter the rental mar- tect" them from obtaining goods chops than in price control on
ket and acquire better accommo¬ they desire in satisfactory quan¬ meat.
dations.
It is indeed surprising tities.
This dramatic
sequence
The blunt truth is that land¬
under

for

reasons,

materially
purchasing

the

Draft Violations

...

Unfortunately*

event,

renting

out

process

landlords

many

Amnesty Bit. to Review

treatment, and investment money
is
unnecessarily
diverted
into

reason, the relative position of
landlords in general has declined
in the last six years.
But in any

individ-

dwellings, and would bring more
dwellings for rent on the market.
sands

un¬

price ceilings on meat were again
established, and meat rapidly dis¬
appeared from the butcher shops.
In
many
cases
the shops were

contrac¬

are;

experience high profits is

sound and quite immaterial.
It is
true
that the dollar profits of

closed, throwing many employees

demands of

the

Member New York Clearing House Association■» Member Federal
Depositlnsurance-Corporeuton

;

THE COMMERCIAL & FINANCIAL CHRONICLE

146

Significance and Legal Status

The Closed Shop—Its Economic

join the union before riod of time. Sometimes the supply situation for an essen¬
union shop practice is coupled tial agent of production. Con¬
starting work.
The /'union shop," as em¬ with
preferential hiring ; of sumers who are reliant upon
union members—that is, em¬ a product or service produced
ployed in the above "Bulle¬
tin," refers to an arrangement ployment of available union by /a closed-shop /union are
members
in
preference | to dependent upon the collective
whereby the employer may
will of the union group for; a
non-union workers./ /; '
hire from any source, but any
continuation of supply.
Dis¬
non-member employees add¬ : Prevalence of Closed and : continuation of this
supply-—
Union Shops
ed to the payroll must join
if the
item is an essential
The / "Labor
Information good/such as coal, or an es¬
the union within a stated peBulletin"
for
March-April, sential service, such as trans¬
must

(Continued from first page)

standing throughout their pe¬
riod
of
employment. 4 Most

secure

suitable per¬

stated period of
In the latter case, the

within

sons

lime.

type of /industry in
closed-shop princi¬

elsewhere

hired

workers

The

which the

ple prevails affects its power.
Employed to its limit to tie
up operations in
industries
providing non-essentials, it is
an
annoyance to the general
public; employed:; no more
effectively to paralyze opera¬
tions in fuel; transportation,
communication, and other in¬
dustries of the "public inter¬
1946, gives a brief summary portation—may induce indus¬ est" type it becomes a poten¬
of the extent to which the trial demoralization,
spread¬ tial source" of extreme dan¬
closed shop-and union shop
ing unemployment and im¬ ger to public health, safety,

agreements re¬
quire an employer to hire
new
employees through the
union, unless the union is

closed-shop

unable to

Thursday, January 9, 1947

■

principles w are. employed,
during 1945, in Ameripan in¬

COMMERCIAL NATIONAL BANK
AND trust

company§|||^|

o/NEW YORK

dustry.

safety.*

13,800,000

Approximately

covered

by
collective-bargaining

workers

w e r e

written

pair merit

'the

of services esisentml
pubis health and
differences in. the
-

economic

of the
shop—when compared

union

economic

welfare,

The

regional area subj ect to
jurisdiction of a closedshop /union will affect its
power. . The larger/the area
covered by such a union's
Jurisdiction, the more diffi¬
the

Certain

and

position

agreements in 1945. 7 Some with the closed shop-r-should
45% of these .workers were be noted at this point, It does cult it is for: employers and
employed under terms- Of not subject an employer to a workers seeking .employment
closed
shop or union - shop complete monopolization of to escape the monopolistic
-

Wall Street

Forty-Six

agreements.
workers

Condition—December 51,194&

Statement of

Hand, in Federal Reserve Bank
$ 46,391,179.11

and Due from Banks and Bankers
U. S. Government Securities.

State and

Municipal Bonds

•

*1.

-j.

• -.

130,813,238.88

147,000,00

_•

1,256,155.32

Other Bonds and. Securities
Stock of the Federal Reserve Bank
Loans and Discounts
Customers'

Liability

./ I

♦

540,000.00

./♦.

Acceptances V

J.,832,$59.82,
•

Interest Accrued and Other Assets
t

..'/••*/
j

••

.7 .v..v.}>«

V .'-V /-'•

../

.•/;./ .• V;

'.*•

-V V/// /*

$$$$!

.•

's'V

284,708.71

V*.
«•;/. V v.

•,

iV/*

$229,493,938.58

LIABILITIES

Capital
Surplus.

•, •

i .»

♦

Undivided Profits >.
'

■■

20,005,633.50

2,005,633.50
I

■■

Contingencies. ./. . •
Expenses » • •
Acceptances Out-*
standing ; . .
2,925,778.25

2,021,864.82

903,913.43

......

Dividend

Payable January 2, 1947

Other Liabilities

•

175,000.00

;

•

576,710.85

Deposits

•

••••••

•

•.

.■

United Stated Government and other'secuHtfes carried at $l4,4$9,939.7d are

pledged

to secure

trust deposits (including $3,702,400.00 United
Deposits), and for other purposes as required by law.

public and

States Government

DIRECTORS
EDWARD J. BARBER
v
Chairman of the Board,
Barber Steamship Lines, Inc*

£-7

vV•

JOHN M. BUDINGER

EDWARD J. NOBLE
Chairman of the Board/
Life Savers Corporation
B. EARL PUCKETT

President

WILLIAM H.

COV£RDALE%

Partner, Coverdale & Colpitis
EDWARD P. FARLEY
Chairman of the Board,
American-Hawaiian

Steamship Co.

Board,

Petroleum Corporation

R. M. GUNNISONv

President, The Reuben H.
Donnelley Corporation

The Omnibus Corporation

•

WILLARD F. ROCKWELL '
Chairman of the Board, The
Timken-Detroit Axle Company

SAMUEL L. FULLER
Partner, Merrill Lynch, Pierte,
Fentier & Beane

CHARLES M. ROBERTSON
Chairman of the Board,
The Kroger Co.

HAROLD E. TALBOTT
New York

WILLIAM T. TAYLOR
7
Vice Chairman of the Board ■
.

WALTER G. KIMBALL

JOHN VANNECK

•-

FRAZAR B. WILDE
President, Connecticut General

Life Insurance Company

control

membership requirements of indirectly—for another typd.

shortly after ob¬ Applying unified j urisdictional

union

the

taining

control, under the closed

Obviously/

job./

these /distinctions

of rio shop, to various related types
of labor, therefore,; is likely
one con¬

are

significance when

to restrict the possibility of
employ¬
obtain non¬ substituting/ other labor for
that supplied by a
or who would
closed-shop

siders the case of an
er

who. cannot

union workers

union.

}

•

Problem

be different from that of the

employer and available jobs.
by formal workers of

it is under the exclusive con¬

union

group/ and
that employment can be ob¬
tained in the field only if
union membership is avail¬

trol

ployer

Filially, the

union shop are

and

obtained .prior

sion

membership in the-

be to

.....

face
■

ployment

•

within

subj ect

•.!'•

the
to

;

■

Power

of the Closed

Before

undertaking

Shop
an ap¬

labor

union

ers,

under closed-shop agree¬

ments,

face

monopolists

ment

additional

of union power,
that the amount
varies

up generous

for

out-of-work|benefits; by

union funds

adoption of restrictive regu¬
lations

tending to limit the

supply of labor made avail¬
able

the

enterpriser; and
upon an

source

and to note

ing from cooperative action of
outside

union

refuse to
engage
or

cross

er's

The

.t'

who

picket line.,

buy the employ¬

//7;" /

product.

greatly with a number shop
./,■,.

workers
the

fn sympathetic strikes,

refuse to

power

of this power employment

of variable factors..
4

by build¬

ing

employer, during a strike, the
the consumers' welfare.
supplemental pressure flow¬

unem- well to think of it for a mo¬

enforced

...

labor markets;

it may

employment. Union members
praisal of the 7 economic ef¬
who * are
suspended or ex¬
fects of the closed shop it is
pelled from a closed-shop
-

employers, regard¬ by bringing to bear

lessf of how essential

Corporation

Deposit Facilities

in a position analogous to that
monopoly aspect of the of the members of a closed
closed shop affects workers shop to deny to the consum¬
and others in several ways. ing public a continuing sup¬
Workers seeking employment ply of a commodity or service
in a new market discover that made available by their em¬

monopolization. The employ¬
Safe

requirements.

agreement between them. 7/

market ^
Member Federal Deposit Insurance

given closed-shop union,
Likewise, • union, membership is likely to affect the power
In
is not a prerequisite of em¬ of the closed-shop rule.
numerous instances one type
ployment to the worker seek¬
of labor may be substituted
ing a j bb/~agaim if he is able
and willing to comply with to some extent—directly or

membership

hazard of

between

union

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

New York

Chairman of the Board

types /of

labor brought under

able

EOUIS J. HOROWITZ
New York

union's

The

Chairman of the
Mid-Continent

President, Allied Stores 7

ARTHUR T. ROBERTS
New York'
■

JACOB FRANCE

■

union workers, or

JOHN" A. RITCHIE
.Chairman of the Board,

•

the

terms

unjust suspension,
monopolize the sup¬ strikes, if non-union workers
or dismissal from the union.1
ply of labor in the market were not available for hiring in
The power of the closedcovered
by the practice— significant numbers, if union
whether the practice is sup¬ membership rules would ex¬ shop rule over
the enterh
ported by uniform refusal of clude them from the union, priser's freedom and welfare?
members of a strong union to or if coercive picketing prac¬ is enhanced by applying the*
work
alongside non - union tices of the union workers de¬ closed-shop principle to more
workers, by tacit understand¬ terred them from seeking any types of labor/in more and'
ing

Corporation

;

number

The

workers

203,728.118.75

•

$229,493,938.58
.rTS'/:'r-'.'-v--• ,*&•"V-:^v:»«£'•

open

and " will comply

shop for the worker union; which increase1 the
costs of remaining 'a member;
lem, created by the closed who is suspended or expelled
which reduce the influehce of
shop is the problem of mo¬ from |his union. Nor, would
the individual member over
nopoly in the economic sys- the union shop principle be
tem.
Under the closed-shop significantly different from union administration and pol¬
arrangement a group of union that of the closed shop during icy; and which increase the

•

in the market arid

can

: by shifting their
sale of labor to art
labor market.

pressure

purchase

/ The basic economic prob¬ closed

Less: Held in Port

folio

The Basic Economic

677,766.61

Reserve for Taxes and

With

a r e

„

2,308,844.05"

Reserve for

they

supply—

workers

required/ under rules of
The power of the closedpreferential hiring, to employ
ments specifying the union only available union workers shop principle over the wel¬
until his:need for additional fare of workers is enhanced
shop without preferential hirpersonnel had been satisfied. by rules which increase the
ing.
*
i
T f v
** *' *
' Neither would the situation difficulty and cost of admis¬
j; * 't

7,Opo,0OQ«OCi
:ll,0.00,(IOQ.pO

•

'•

According to these j data,
somewhat more
than 4,000,000 workers!were
subject,.during 1945, to terrris
of collective agreements call¬
ing for a closed shop i or: ja
union shop with preferential
hiring. 7 Some 2,000,000j were
subj ect v to terftis of agree¬

of labor

sources

non-union

Union if

therefore,

48,228,796.74

his

shop were subj ect to a closedshop arrangement or a unionshop arrangement with | pref¬
erential hiring.' The remain¬
ing one-third were subject to
an
arrangement calling for
the union shop without | pref¬
erential hiring.

RESOURCES
Cash

closed

uiide'r available

employed

terms

of .those if

two-thirds

Some

•

flowing
of

the

principle,

from

closed*

therefore,

tends to reach an extreme de-

Volume

165

Number 4558

THE

COMMERCIAL

FINANCIAL CHRONICLE
147

when -the
applied— v

principleris' bargaining 'agent /than/one .'inability to
pay high initia- ministered to
the recalcitrant
| which does riot represent all tion fees, or because of the
member; and,
7
;
(•
•Il> on : an ••:
industry-wide of the workers; and, lastly, . union's adoption of a "closed(7) that to force
union"
basis;1"
'
;
(7)
that' the
any work¬
principle; 7 (('.((7
compulsory
er, by a
closed-shop arrange¬
•(2) to all or most types of membership feature ' of the
(4) that the closed
shop ment, to join and
closed shop is no more
labor in the industry;
support a
foreign principle — due to the fact
private organization against
^r-knoo
to /the American philosophy, that loss of
membership in a his will is a
flagrant violation
^ Y
product or^senuce ^ Whlv of- individual freedom than closed-shop union results in of basic
s, s p ! certain ^ practices^.for' loss-of a Job and a source of vidual in rights of the indi¬
essential
ill continuous,
our democratic, so¬
;nstancej - the
requirement' livelihood — increases to an
ply—to the public welfare;.
ciety:' 7 (.(!: %
7
that all citizens
pay taxes, in [ unwholesome degree
((/.(4) under rules which make
the
:. Among arguments advanced
support of government, or they power of the union and its
it difficult for workers to
join
requirement, in some States, leaders over the union mem- against the closed shop from
the union, to
pay its operat- that all
the point of view of the
em¬
lawyers admitted to ber; ((,7 77ing expenses,., to control its the bar
ployer are the following con¬
become members of
y (5) 7 that
this
policies, or to avoid unfair a har
increased tentions:
association.
7.7 ,.7 7
v'
7
:
gree

permit

closed-shop

monopo¬

lies in the labor market.1

•Additional Considerations

of the union

power

dismissals; and

Several

claims

have

and

its

(1) that it is

been

leadership over the •»worker
conditions which advanced in behalf of
/the encourages- various malprac¬
employers 7 to
the closed
shop, also, (from f the—
tices,, such as imposition of
additional p r ess u re s and
j p0j
©f yiewi of the employer. | excessivet union dues and. as
hazards of a
closed-umon
Among these claims are the sessments, • waste of 1 union
—
*ule* of:^iolehdb and d^
; contentions:
/
funds by union
tion of
officials, grant
property during strikes
( (1)
that the closed
and picketing,, and of
shop p| excessive salaries, to(Union
conspir¬

X 5under

subject

the

sitions

union's

acies

with

outside

workers

to/boycott the product, toengage in sympathetic strikes,
or. to
refuse to cross- picket
lines in order to supply essen-

/ tial products or services durr

ing strikes/77;.

.7 777

v':

frees

an
enterprise from the
disturbances which grow out

membership drives; 7 7 7

strong

' closed-shop
with 7 a 7- Weak(

than

fact,

-are -

equally

important

Increasing use of
closed-shop (principle is
likely to result in many ef¬

who may

fects upon
general economic
conditions and
upon economic
groups other than employers

if, for any reason, they lose
dissi¬
their union
elements in 7 the
membership;
union/
(3j that some workers (do
and'a'general tendency to dis¬

and

;

employees directly

cerned..

Its

con¬

increased

use,

;

union
union

membership by: means

without

reasonable

doubt,

join unions, and would have significant effects
for employ¬ relative to (1) labor produc¬
required, as in tivity, (2) mobility of labor,
(3) / wage differentials,
(4)

illogical

of the

are

the

leaders/ intimidation of

em¬

there

from the point of view of the
general welfare of the Amer¬
ican people.

7:(7

dent

po¬
union¬

other considerations which—
in the
judgment of the writer

entirely satisfactory to the
employer must be discharged

regard the welfare and rights not wish
of the individual
member; - that it is
7 (6.) that
compulsory union ers to

(2) that it is easier, .in fact,
for an
employer to deal with

■

77(27that workers
be

those

the

ized industries and their

disadvantage

membership;

upon
workers in

ployers.

employer to have- his
employees > limited

—

•

consideration

the

to limit

bearing mainly

choice- of'

■y7'

properly

closed-shop problem,

suspensions

appraise

higher

It is not sufficient, in order

closed-shop

agreements/
to
closed shop is
especially dis¬
wage flexibility,
(5)- unem¬
advantageous to workers in com{iel union membership as ployment, (6)
industry con-;
further reduce its
a ;i condition
cases of unions dominated
of
and
strength;
employment centration, (7) general busiA number. of arguments
(;7(3) that the employer gains manipulated,, for their own when the law (as in the Wag¬
have, -been advanced /-^ by! from the
greater harmony re- enrichment, by those unscru- ner Act) prohibits the re¬ ( 1 In preparing the above sum¬
union, members and leaders,
maries of
sultihg from.: elimination of t rjulous uiiion
arguments, the. writer
leaders who .re- quirement of non-union status has drawn
stildents of labor relations, or
frictions between union, and
especially upon argu¬
•'7/77 -.7--v7: 7"/ 77(7;■'

•

which

'77;'

Arguments for the Closed
Shop

move

questions

his

every

potential plan to

otfters-in
closed

behalf

the'non-union

shop, These arguments ;f(4) that.

emphasize the possible advan¬

tages of the closed shop to the

employees;.'

well

t£

employer,

union

frda

: as

the
the:

workers, ; gams
reduction in .juris-*

lar^plv

■

condition of

as a

largely as a
S0UrCe °f gam from lar§e'sal"
aries and

ments

mentioned in "Trends
Collective Bargaining,"

employment ;

pp.

and,1

expense .accounts,

from (any
and who seek to
pprpetqate forbid business enterprises to
workers, and to a lesser de¬
dictional controversies result¬ their
/lucrative: positions^ by engage in«
gree to the employer,
monopolistic pracing from the; closed-shop prin¬ threatsr
^^eveiirvi61ehce7a& ificestands'htithAtlsama; > Among the more important
ciple; and, also,
* /
advantages claimed forithe
(5) that the employer bene¬
closed shop from the
point of fits from
greater, stability in
view of the workers are the
wage rates and a tendency

following:

tqward removal of labor costs
closed shop is as a
competitive factor in in¬
a y
significant aid to union dustry.
strength, and unionization is
I Arguments Against the 7
essential under
modern/con¬

<the

■

•

[

R:% LEfFWGWEi.L'h
fihairww
~

-115-117. (/
I

ship;

the union's

member¬

facilitating (accumula¬

•:

"bargaining;
(4) that

•••••-/

i. e. R IA TKIN.
Vice-President '■

PAUL

(

the

continual

following. conten¬

President

C, CABOT

Morgan

JOHN L.

Other Bonds ahd Securities
:

■

•

constructive

purposes-; 777
J

p:77(7;:77 '77 v
(5). that employment of the

closed-shop
tects

principle (

union

from

pro¬
rival

satisfied members;

(;(3)

that

the

constitutes

777: 7

closed

•"

■($} that

tends to be

closed-shop union

a more

responsible

union

membership

of their

race,

on account

because of their

Less

14,059,598.36
112,738,741.76

.....,

2,393,433.27

i3,000,000.0(7

Letters

Prepayments;

;

' 1

$7,$5§,326.9T
:1

■(

(

90,356:00

7,467})70.97

.$653,740,349,72

Incorporated y

7 7
LIABILITIES

G USTA V METZMAN

W.A.MITCHELL

Deposits..... i
•.

/ /"

$583,927,459.31-

4,511,996.94

Capital..*.

Motors

1 Credit Issued./A*

7,558^326.97

*>..».».•««.

Surplus/. :.Z /

f+*• /"'«•.•>»4*.

•

.v*

,20,000,000.00

20,000,000.0G>

....

Undivided Profits.»♦

-ALFRED P. SLOAN JR.*
Corporation

etc.

Acceptances Outstanding andLetters of

S. MORGAN
\
Vice-President
■ *■■/,

( "/■■■Chairman General

9,045',285.22;.

7/': JtfNIlfS
-(

Accountf Payable,: Reserve for Taxes;

(

$574,882,174.09

Official Checks Outstanding;

•

■

Vice-President

(

THOMAS S. LAMONT
1:.
Vice-President
President New York Central
•,
Railroad Company

;

• * .

v.«»....».

'
.

*,..-...»•

•.

"*■*.

17,742,566.50

$653,740,349.72

* /■■ \ \ ■}

7 i( TAPPAN STANNA RD
/ //President Kcnnecott:

.(/,"

'Copper Corporation

signifi¬

workers from

-V'•

Chairman Finance

Committee Hartford Fire

■':'//Insuranee Company

United States Government, securities carried

;■:/■'■

JAMES L. THOMSON

„

1,200,000.00 '

GALLAGHER

cant

shop

barrier to
-unions and reduces the num¬
employment
ber of jurisdictional contro¬ in certain fields, of
work^ due
versies between
to exclusion of
unions;.
:*

7. (....

........

ofCredit and Acceptances"

...

»•*

ND.JAT

may consti¬

tute in some cases—a

13,186,860.80

Vice-President

prevent

(iricluMfii:Shares i

Purchased......»

Liability of Customers

7
>

::n,

358,329,717.86

dis¬

$141,364,026.70

CHARtES-D. DICICEY
RALPH }Y.

necessity : of carrying on or¬ attrition 7; which
(/otherwise
ganizational activities and, would
develop from with¬
thus, is permitted to divert its drawal from the
union of

•efforts

Banks,/.,t.,,

Accrued Tnterhst, Accduhts
Receivable, etc..

Banking House.

■

Vice-President/

and Bills

(/Vice{ChairmahMergant^p Cie//

•(>((-*'-

of Morgan Grenfell $ Co, Limited, and
Morgan
Cie, Incorporatadyv//. //. i
"

Loans

COLLYER

HP. DAVISON

I President The B^F, Goodrich, '
.:.•
■
Company ,(■■,

Stock of the. Federal Reserve. Bank
•

& CicJ

Incorporated

.unwilling workers
and

•

United

CHARLES S. CUES TON

(2> that the essential unionstrengthening function of the

unions

page

ASSETS

States- Government
Securities:.
State a&dMuhieipat Bonds and Notes,.
»>..

BERNARD 8. CARTER

■

into

,./7,

///<//////

President State' Street

Cask on Hand and Due
fpavi.

•,

Investment Corporation

■y

7(;« 7 77 closed
shop today,: therefore,
closed-shop union is to force

freed, from

closed-shop arrangement—to ploy ers;.-

sibilities

.♦

Vice-President

share of the respon¬
and costs f of such

Condensed Statetneitt of Condition December.
31,1946

C. ALEXANDER

ARTHUR M, ANDERS ON
Vice-President

tion of union funds; and
■
pre¬ tions:
7777777®'
venting employer discrimina¬
(1) that the closed-shop de¬
tion in (favor of (non-union
fense of (the Union
against
workers;,
v
anti-uniori discrimination and
•'•"77 (3) that the selfish or short¬ other
practices of the em¬
sighted non - union worker ployer is ho
longer," needed/
who is
willing to share in the since the Wagner(Act and
benefits of collective
bargain¬ simitar. State 7: laws
prohibit
ing can be required—under a anti-union,
practices oiem¬
assume a

'/(( 7/7;..

((Continued

: i

President'

7 HENRY

closed shop, from the
point
of view of the'workers, have
the

GEOR GE WHITMEY .,(
■

against

been

of "The Jour¬

Economy,"

NEWYORK.7

(v7(-7:.Vh,

■

Political

/ iyCORPORA TED

•

.promot¬ directly affected,* or employ^
ing
solidarity
among/the ers.; Among the more import¬
workers; promoting union ant, arguments against the

tion

.Chairmatu

yK: (2) .that the closed shop as¬ the closed^ shop—mostly^from
sists
instrerigtheningaunion the point of view of workers
in ja number of
ways:

discipline; preventing' deple¬

J. P. MORGAN & CO.

^777

THOMAS W. tiJMONT
,

ditions as a means, of
Closed Shop
securing
A
number
( a fair share of industry, earn¬
of arguments
have been advanced,
ings;.
7-7
..

April, 1943 issue

nal

DIRECTORS

7(77 (1) that the
:

Twentieth Century Fund
"The Dilemma of the Closed
by John V.. Spielmans in

Shop"

the

and

1(4) that it is inconsistent to

;

statemeht

$25,178,677.63 in tlie. above

are pledged t-o
qmlify for fiduciary powers-, to secure
public monies as required by law, and for other
purposes.
•

'
•

(- " JOHN

S. ZINSSER

President Sharp & Dohme Lnc*

"•

43-45/

•

Member Federal Reserve
System

Member Federal Deposit Insurance
Corporation

pp.

'( (7'(

148)

THE COMMERCIAL &

148

FINANCIAL CHRONICLE

Shop—Its Economic Significance and Legal Status

The Closed

duly raise the cost of labor of mobility of labor between dif¬
union members to the em¬ ferent regions and different
ness stability, and (8) the so¬
fields of employment.
Each
cial
hazard
resulting from ployer, which in turn is re¬
flected in higher prices to the closed-shop labor market is a
strikes.
Also, the practice! market with a union-made
i> A few brief statements out¬ consumer.
permits greater power of the' hurdle or barrier around it.
lining the probable effects of
Labor, can be brought into it
increasing use of the closed union to discipline its mem¬
member only upon such terms (of dues,
shop jon the above conditions bership, 'including
should be helpful in obtaining practices pertaining to output eligibility requirements for
a
better basis for appraising limitation.
Altogether, it membership, etc.) as are de¬
seems
reasonable to expect termined by the union con¬
it.
that widespread use of the trolling the market. .
1.
(1) The closed shop pro¬
Highly restrictive member¬
tects union members from the closed shop is likely to re¬
the
competitive pressure of non¬ duce, rather than increase, ship requirements . of
closed-shop unions, therefore,
union workers, and enhances labor
productivity.
would tend to aggravate the
the power of a union to limit
(2) The closed shop appears problem of labor mobility in
the number of workers in a
economic system which
to constitute a real threat to an
given labor market and un¬
calls for substantial shifts in
-

(Continued from page 147)

■

Thursday, January 9, 1947

'•
(8) The ability of an irre¬ cording to the terms of the
v,
:
'
sponsible union leadership— State law.
-V' SI
by means of effective disci¬
'(3) Some of the States re¬
pline of union members and quire a special referendum on
complete control of the labor the closed-shop principle be¬
supply through the closed- fore it can be incorporated in
shop. arrangement—to bring the terms of collective bar¬
.

standstill

one or more

gaining agreements. Wiscon¬
sin, Kansas, and Colorado fol¬
stitutes a real danger to the low this
policy. Colorado, for
stability of our society, •
example, enacted a labor re¬
essential industries, con¬

our

This

effect,

noted—as

should

well

lations law in 1943 which per¬

those out¬

mits a closed-shop agreement
previous paragraphs only when three-fourths, or
—is just as likely to grow out more, of the employees of an
as

lined in

virtual-closed-shop situ¬ employer have voted affirm¬
as out of one resulting
atively for a closed, shop in a
from a formal, legally-bind¬ referendum conducted by the
State Industrial Commission.
ing agreement.
'i-i*\f|V
'
"'i.'''
"v-'\'
•-1.'
labor supply due to changes
Furthermore, urider the Colo¬
Legal Status
rado law, the State Industrial
in population,: technologyj and

■

ation

...

is directed to
No attempt will be made In Commission
terminate any such closedWage differentials, it this discussion to present a
appears, are likely to be re¬ detailed survey of the present shop agreement if the union
of
the
closed
duced within a labor market status
shop "unreasonably has refused to

consumers' demands.

(3)

the

under

jurisdiction of a agreement under terms of
closed-shop union.
On the State and Federal law. A sur¬
other hand, it is reasonable vey of the present legal status
to anticipate a greater differ¬ of the closed-shop, however,
ential in (money) wage rates discloses several conditions of
as between a closed-shop la¬ the law on this type of agree¬
bor market arid an open (un¬ ment. These legal policies on
organized ) labor market. Jhe the subject may be referred
monopoly aspect of the closed- to as (1) laissez-faire, (2) the
shop labor market is the ob¬ Wagner Act policy, (3) per¬
vious basis for expecting the mission by specific referen¬
latter trend.
dum, (4) prohibition by stat¬
(4) When monopoly jpower ute, and ? (5) prohibition by
in a market is significant it constitutional provision.
.

;

Business "Established 1818

Co.

Brown brothers harriman &
PRIVATE BANKERS
NEW YORK

Statement

PHILADELPHIA

of Condition, December 31,1946
ASSETS ' *

•

Cash

BOSTON

Hand and Due from Banksl';

United States Government Securities

$ 55,714,099.46

67,045,856.63

permits

39,471,711.74

control

and Other Public Securities

State, Municipal

Other Marketable Securities

•

Customers'

Liability

Other Assets.

4,973,559.08

Loans and Discounts
on

Acceptances

;

.....

(1) The laissez-faire policy
greater degree of
price. When a is very common 'among, the
greater degree of control oyer States, Under this policy, no
price is held by a group, it is status for the closed shop has
reasonable to expect that the been provided for in the Con¬
price will fluctuate less, in stitution or by any of the laws

59,542,722.85

14,115,641.47

693,413.74

response to changirig supply
and demand conditions.

$241,557,004.97
LIABILITIES

Deposits—Demand
Deposits—Time .
Acceptances

Accrued Interest,

Expenses, etc.
Contingencies .

.;,

The

14,536,391.30

1,500,000.00

Robert A. Lovett

•

'Foreign Banking

Thomas McCance

Prescott S. Bosh

™

E. R. Harriman

Ray Morris

->i

H. D. Penninpton

Brokers
*

for

■"

•

V; ».^

T. '

Purchase

and

Securities

Managers

k 'Vj

..y

Sale
'

■

L. Parks Shipley

Joseph C. Lucey

Donald K. Walker

Howard P. /Iaeder

David G. Ackerman

Investment Advisory Service

Limited Partner—W. A. Harriman

Edward Abrams

Commercial Letters or Credit

Knight Woolley

'* 1

Accounts-Loans-Acceptances

Deposit
•

Louis Curtis

'
'

Charles F. Breed

Edwin K. Merrill

John C. West

Joseph R. Kenny

M. Dutton Morehouse

Gale V/illard

; Ernest

F. II. Kingsbury, Jr.

;closed-shop V agreement

Harry L. Wills ;;

E., Nelson' ,v2

Maine, Montana, Oklahoma,
monopolization of the la¬
bor supply to an entire indus¬ Virginia,"Vermont and Texas.
(2) The Wagner Act policy
try (as a result of unioniza¬
toward the closed shop per¬
tion
on
an % industry - wide
basis, coupled with a closed- mits such agreements to be
shop arrangement) is a means entered into between an em¬
of imposing
enormous mo¬ ployer and a labor organiza¬
nopoly pressure upon enter¬ tion when the labor organiza¬
prises:; within the industry tion is one meeting the re¬
concerning. an agent of pro¬ quirements of the statute as
duction essential to their sur¬ the collective bargaining
vival. It seems reasonable.to agency representing a major¬
anticipate that such monopoly ity of the employees in an ap¬
pressure in connection with propriate collective bargain¬
labor supply is likely to drive ing unit, and when the labor
marginal firms out of business organization is not dominated
and
provide an additional bv or assisted by - the em¬
basis for industry concentra¬ ployer.2
/
.

•Assistant Managers

•

James Hale, Jr.
William C. Horn

;

c
.

' ,v V:

William F. Ray
Arthur R. Rowe

George E. Paul,

Richard Platt
■

Laurence W. Simonds

Charles S. Carlson, Comptroller

Licensed

;, Arthur K. Paddock

J. McElrath
Herbert Muhlert 4;

Thomas

Arthur L. Nash

William A. Hess

tion

•

John. A. Knox

Robert H. Chamberlin

Merritt T. Cooke

Private Bankers and

■ ■ -

Treasurer

' •/. *

;

Arthur B. Smith, Auditor

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 examination by the Commissioner of Banks of the Commonwealth of Massachusetts.

policy, • including

and Idaho.

Nevada, for ^ex¬

are

Complete Facilities tor Domestic and

Stephen Y. Hord

similar

courage

PARmERSWiSM:0}
Thatcher M. Brown

courts.
more likely to en¬ the
Approximately enter 1 n t o an agreement
unemployment than one-third of the States are in whereby "an employee or
this category^—including/ for prospective employee of any
employment.
person promises, as a condi¬
(6) Adoption of a principle example, Georgia, Iowa,
which

13,765,283.54"

Required by Law $1,600,000.0.' SiC^verritrient Securities are
Pledged to Secure Public Deposits.

Moreau D. Brown

A number of States follow

bor and reduced

$241,557,004.97
As

trustee.3

(5) Reduced mobility of la¬ be contrary to public policy closed-shop contract in its
1929 statutes by declaring it
flexibility in and unenforceable as a result
to be unlawful for anyone to
wage
rates are
conditions of common law decisions of

139,188.24

11,765,283*54

prohibits a trustee in bank¬
ruptcy from entering into, a
closed-shop agreement with a
labor organization pertaining
to employment in any enter¬
prise for which he is acting

outlawed bottf.. the
rates in closed-shop Ja- wpuld be legal in ,$uch States, ample,
hbr markets. J
therefore, unless declared to "yellow-dog" contract arid the

$ -2,000,000.00,

Capital
Surplus

terms of general statutes^perclosed-shop taining to labor matters or a

Railway Labor Act of 1934
the Bankruptcy Act of
1933. The Railway Labor Act
forbids carriers subject to its
terins to require a person
seeking employment, to join
(or not to j oin) a labor" organi¬
sation. The Bankruptcy Act

and

wage

943,632.12

Less Held in Portfolio.

Reserve for

the

of the State—whether under

member any em¬

as a

special labor relations law. Nevada, Maryland, Louisiana,

15,480,023^42.

Spread, of

$208,600,348.91
: 3,015,792:98 $211,616,141.89

over

receive

ployee of such employer."
(4) Prohibition by statute
is
another policy
on
the
closed shop. This policy is fol¬
lowed under terms of the

in those industries sub¬

A number of the

tion of
in

obtaining or remaining
employment, either to hev
not to become or con¬

come or

tinue
labor

member of

organization." An Idaho
1933 denies enforce¬

law of
ment

courts of the State

"of any

promise or undertak¬

ing by an employee -or em¬
ployer to join or not to join
any labor or employer organ¬
ization,"

(5) During the past three
years

five of the States—Ar¬

kansas!^^ Florida, Arizona, Ne¬
and South Dakota—

braska,
have

the

prohibited

closed

shop by constitutional amend¬

leading in¬
ment.
Arkansas and Florida
including
such States as Pennsylvania, adopted amendments in 1944
(7) The foregoing analysis
does not appear to indicate New
York, Michigan,
and and the other States adopted
that one should expect the Connecticut—have adopted a
2 The fact that the Wagner Act
closed-shop principle to be a similar policy of permitting
is promotional of unions and per¬
development
conducive t o the closed shop when such an
mits closed-shop
agreements, as
greater business s t a b i 1 ity. agreement is entered into be¬ stated, causes the law, in its effect,
Rather, it might well prove tween an employer and a la¬ to be promotional of the closed

ject to unionization of labor.

dustrial

to be

bor union

significant factor tend¬

ing to aggravate depressions

and deter recovery.

agency

•

States

—

which is certified

collective

3
_

for the employees ac¬

shop.

bargaining

See Metz,
•

"Labor Policy of the
i

•+

-a

A m

Volume 163

Number 4553

THE

COMMERCIAL & FINANCIAL CHRONICLE

labor, productive efficiency
labor,, and other general

conditions.

economic

bition

this

Prohi¬

monopolsitic

feature of unions would per¬
mit a less detailed, less costly,
and

less

bureaucratic

public
Also,
a
policy of prohibition would
foster competition, rather than
monopoly, in an economy
which relies strongly on com¬
petition to protect economic
groups from exploitation, to
maintain productive efficient
cy, to facilitate market and
supervision of unions.

industry adjustments in link
with basic economic

changes,

and to promote

general

omic

and

progress

standards of
The

ecom

rising

living.* ^

CHRONICLE

invites

com¬

ments

on the views expressed
by
Dr. Anderson in this article, or on

related phases of the subject

any

under

discussion.

should

Comments

addressed

Editor,

Commercial and Financial Chron¬
icle. 25 Park Place, New York
(8),
n.

•

Corn Exchange Bank
Trust Company
—

X...

;■>,

X; xxx 7.x"

);f

ESTABLISHED 1853
X77.7

■

•x ^

••'■xX:

x.\

7" ■■'777 7

■

REPORT OF CONDITION
At the Close of Business, December
31,1946
>

7777''.

ASSETS
Cash in Vaults and Dub from Banks

U. S. Government Securities

$203

538

($36,318,335.44 pledged to secure deposits
and for other purposes as required by law.)
Federal Reserve Bank jStock
......

State, Municipal and Public Securities

Other Securities
■ni.:-: i

iijr

' u

■

•

.■«.

Loans and Discounts

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

U;
& U:

■

*i,•

':ri<

.Fi^st Mortgages • ; . p.;
Customers' Liability oif Acceptances
49

Banking Houses

•.

v,7

>■

■

•
.

♦

•

Other Assets

•

Accrued Income Receivable
.

Other Real Estate!

•

LIABILITIES

X ;7fX:7 "-XXX:xXX.';X7 X- 7.

Depositg

.'X
•

(Includes $15,607,209.71 U. S. Deposits)

Acceptances Outstanding
Less: Held in Portfolio
Reserve for Taxes,

...

•

Expenses,

Capital
Surplus

etc.

•

Undivided Profits

•

•••«.••«»

BOARD OF DIRECTORS
Robert a:, drysdale
Senior Partner

-X7

RALPH PETERS, JR,
vx

President

Drysdale & Company
JOHN H. PHIPPS

President, Capital City BroadcustingCorp., Tallahassee,Ha.

■

C. WALTER NICHOLS
1

Chairman, Nichols Engineer•
ing & Research. Corporation
GEORGE DOUBLEDAY

Vice President

•

!
4

EDMUND Q. TROWBRIDGE
Retired

JOHN R. McWILLIAM
Executive Vice President

E. MYRON BULL

•

President,.A. H. Bull & Co.
SIDNEY A. KIRKMAN

■

. ,

HENRY A. PATTEN
7

•.

Chairman, I nger soli-Rand A
Company - gI ■ ■
xx'x
.

Livingston Worsted

Mills, Inc.

DUNHAM B. SHERER
Chairman
*

HERBERT J. STURSBERG

77 Treasurer,

Retired

■

THE

ISO

1947;.

Thursday, January 9,

COMMERCIAL & FINANCIAL CHRONICLE

gaining agents should register and
basis.;We must reduce .a furnish, financial reports to their
government
swollen with war members! The bill; last year §ls»
set up Federal mediation machin¬
if the people desire to retain cer¬ powers to proper peacetime pro¬
The general purpose of ery to establish an independent
tain established programs, it is not portions.
1 the program is to restore to the
mediation board operating impar¬
possible to tell the President in
tially between employer: and em- ,
detail how '.these programs shall people the freedom of initiative
and enterprise : on which
sound ployee.
It is generally felt that ;
be administered. Nevertheless, the
A lot'of the pro¬ in recent years;the government
Republican Party will have great progress rests.
boards
have; strengthened
the
gram may look
to be negative,
power in determining many do¬
but essentially it is a constructive hands of labor unions by almost ;
mestic programs requiring legis¬
taking their side / in. every -con¬
lative action.
In the foreign field job like clearing the ground after
a. great
The bill also provided
catastrophe so that the troversy.
at the present time, there is a
people may plan and build anew, that 'foremen could; pot; be con- '
general agreement between the
sidered employees for the purpose
two parties on our political: poli¬
"
Controls £nded
pf the; Wagner Act, but as part of'
cies throughout the world, and
management. ; The bill also out-,'!
there was no 'substantial differs V: The first -task, therefore, is tlxe
ending of controls, partly accom¬ Tawed the secondary boycott, by;
ence on this issue in the election.
put the government on a pay-as-

The

Republican Party Program

will

probably lead to

The

Representatives

House

which gives
wide freedom of choice in

complete him a
United determining "how
;:

change in the rules of the
;
/

States Senate.

power

the laws,

execute

Constitutional

the

has

(Continued from page 127)

organized today has now a Repub¬

any legislative
policy .shall be worked out; In the
field of foreign affairs- the Consti¬
tution confers upon the President
the full power to deal with for¬

majority of 57.
When the
Senate is organized, the Republi¬
eign nations without consulting
cans have a majority of six.
•Congress, and the legislation set¬
ting up the United Nations, the
A Republican Congress and y
International Fund, the-Interna¬
Democratic President
tional Bank and many other inter¬
The responsibility of the legis¬ national
institutions greatly in¬
lative
program,
therefore, falls creases
his
power
in
foreign
lican

Congress, although
President Truman, of course, has
a
veto power in that field.
It
should be pointed out further that
primarily

still have

Democratic Presi¬

you-go

plished

affairs.

In
fact, about all that
Congress has retained is the right
foreign

policy, requires

appropriation.

Undoubtedly, Congress

can

de¬

dent, and that his powers are
of certain
equal to and in many respects, prive the President
greater than those of Congress. powers in the domestic field, but

main issue

The

the election

President's
are,

own

however, <a
on the

third

nocent

war

actually

itself, which President Truman
constantly increasing inter¬
did not terminate,*1; These should
with family and individ-'
be definitely repealed, preserving
ual life and with
business,*: iby
only those which - should.: form
autocratic- government ^ bureaus
and autocratic labor leaders.
This part bf';a;ihore permanent pro¬

markets

freedom

elimination

the

reduction

the

duration

Of the

of the

ference

the Issue made by the Repub-

and.

;tjha

;

can^

didates

showed

desired

reconversion

people

the

that

the

and

re¬

sumption of progress in the United
States bii the. basis ;of dh6se!prinn
ciples pf freedom which have in¬
sured our. progress for-l 60 ;years.

gram such as the maintenance *of
American troops in Germany and

Japan.; In ^removing these con¬
trols,; various ! special problems
arise

which

must

dealt

with

by legislation.; The whole emer¬
gency housing program should be
recast.

have

Special
legislation will
be adopted relating tq

their claims

support

pressure

through threats- and injury to in¬

and

restoration

the

and

overwhelming vote

NEW YORK

There

number, of laws, dependent

tried to bring;

unions have

various declarations of emergency

Was

was

Bankers ^Irust^ompany

the

actions.

Voters

Main Issue Before

to cut off funds where the

which

parties, and have
out from certain >
goods made by members
shut

of ' unions of^which

approve.1 "v-;v

they ;did hot
*•

Legislation Proposed;

were

.propo¬
measures
last

sound

legislative

All "• of these
sals

when they were .vetoed by
President Truman, and they are
sound today. -; They will be in¬
year

cluded

In" any; Republiqau;spohr

sored labor bill.

> Many additional;
proposals have: been made,.; the
most: important of whichi probablyj are the following:"

sugar and probably wool.
These
President Tjrunlan!s credit
are only samples of transition legli;!The putlawng *of "closed/shop.
the people spoke Tie
2. Some limitation on the power
£i
changed his mind on tne most
>>
of nation-wide monopoly, bar-5
outstanding of these controls and ; ■, An immediate study should be
hastily accepted the verdict of the made;of the; various pre-war and j. gaining which brings about.the
nation-wide strikes that inter-1?
people. He almost abolishedip"r|ce New; Deal -laws, in order to elim¬
fere; so seriou sly. with the! wel-;
control. He greatly reduced hous¬ inate jnahy .of the powers of the

It Is tq

when

that

various

eliminated

Deal

control

Wyatt.

taxes.

Cash and Due from Banks

U. S. Government Securities

^3,442,654.34

•.

State and

Municipal Securities

Qther Securities and Investments

Banking Premises* .*.

•

.* 4

(

Customers' Liability on

Acceptances

•

».

•

"14,911,867.64

\«
.

•

4,230,871.17

■

welcome::the

Bresideni-s

ac¬

tions, but let us remember that! it
was all brought about by the bat¬
tle which the Republicans made

„

very; com¬

Congress on, the * subject, i Theo^e
is some evidence sthat he iwoupd
accept laboF measures even mcxre
sweeping than those which
he
vetped last..year 4n the Case Bill.

» c* *

■%'

, r

powers was -a

plicated one, that, he was having
complete
survey
made
and
would .later make suggestions to

* w j

war

38,263,952.59. ;

.•

.
11

15,521,664.85

Accrued interest and Accounts'
':'Receivable-;.,

^9^897^10.69.

^Before the election he hhd
fought bitterly to retain price con¬
trol unmodified, and recommend¬
ed the increase of housing control.
Only two weeks ago he j wrote
Senator -Wiley- that the question

347,62 3,987.22

Loans and Bills Discounted*. V

last

against > the President,
and the campaign Tssues made by
them-and approved by the people.
year

With
the President's change iof
heart, it is likely that there will
be much less controversy between
the President and this Republican
;

Capital

•

Congress than between the Presi¬

$30,000,000.00

ihe; last
*

dent /and;

*80T,000,000.00

37,15 3,661.7 3

147,15^,661.73

«...

'«

.15,428,103u 18

Dividend Pay able January 2»,T 947

•

beposits

*1,390,389,699.37 >

Surplus

;

Undivided Profits

•

GeneralRbserve

;

Reserve for .Taxes^
.'

♦. /

.....

\ *

* 5',307,613.00

in Portfolio

; ;

;

1,265,640.23
r

4,268,731.22

$1,565,163,448,73

Securities in the above statement are carried in accordance with the

method described in,the annual report to

stockholders, dated January

Assets carried at $56,365,291-66 haw been deposited to

deposits, including $34,464,914.86 of United States Government

deposits, and for other purposes.

•

/ "'

Member of the

Federal Deposit Insurance Corporation

Acts. ;

purpose

During

of the

the

Measures intended to limit vio-

lence in labor disputes.

New

every; statute

period,

' was

:.y'-y

de¬
be.

determined by the 246

Republican

members

House

and

the 51 Senate members.; Many pi
them are new men who have not
time

study; the problems

Congress in detail,
some

determined.
a

land'it

time before. Ja

must be

can

way

general

prp-

only

own
Views of what a program ishould
be. -Roughly, the program divides
itself

into

immediate

action

re¬

quired, and a long-term program
of peacetime progress. v These two
cannot perhaps be divided by i a
sharp line.
The immediate pro¬
gram must be designed primarily
to cleaning away the rubble of
the

war

and the

jfrew

Deal to pre¬

the "way for constructive
building in the future.
W6 must

pare

correct

fourteen

years

fusion and unfilled promises.

con¬

Proposals for

labor court and

-to

control

peace.
so

continue

these

pro¬

the scope of each program
should be definitely determined

grams,

by law and reduced from the pres¬ mittee may determine that some
ent .excessive power. ;
; :
f ; of these ; proposals are without
merit,

that they require

a more '

v'n;.; fundamental*
study than can be
; The second program relates to made during the next two months.
labor.
The people have resented If
it: approves
any
additional
the
interference;! to their daily measures, they can be added; to"
lives -brought about by the exer¬ the
program
already
approved
cise of arbitrary power by labor and reported-out in one bill.' I
union leaders almost as much as believe most Republicans feel that
they have resented the interfer¬ they have a mandate from the
ence by
government.
Often the people to adopt legislation which
Labor Program

labor action has been encouraged

will

by the government. The Republi¬
can Party has frequently declared

lations

its

belief that he

solution of

em¬

ployer-employee relations rests on
a sound system of collective
bar¬

bargaining rested with the
employer, ? and
he abused that
power.
By a series of laws such
as
the Clayton Act, the NorrisLaGuardia Act and the Wagner

Congress/attempted to re¬
balance.; Perhaps these
far

Act,

laws would not have gone too

if they had not been
ed by many rulings

and

boards

supplement¬
of executive
many court de¬

cisions which carried the laws far

beyond the original intention of
Congress.
The result has been to
far

shift the balance of power so
it

that

way

over

the

side

of labor unions; If arbitrary power

exists, arbitrary labor leaders are
bound to use it, and every other
labor leader has been forced to
use

lose his power.

As I see

employer-employee

011

welfare

people.
;

and
■

Reduce

progress

" -

;

■

Expenses

and

Taxe$

Republicans have- stated

their

intention of reducing the expenses
of
government and cutting the

personal
ent

income tax,

burden

The

taxation

pres¬

seriously

hampers the welfare of the entire

people.

Single;

men ; oir; women

earnings $1200 a year,
it is difficult enough to

on which
live, have
The Presi¬

to pay $110 in taxes.
dent of the United States receiv-

ing $75,000

centive to take

risk in the

which

ventures

employ¬
ment, or do otherwise than invest
their money in municipal bonds.
All of these taxes

are

that there is

some

burden¬

constant ef-~v

fort to redress them by

increasing

creased prices and Inflation.;

able demands
cessive

those

because of the

power

demands.

given
The

ex¬

to obtain
Republican

new

create

regulation
until', employer arjd
employee can meet on" a fairly
equal basis, and neither of them
be tempted to insist on unreason¬
decision

$40,000 in :•
taxes, r The very wealthy pay up,;
to 90% and certainly have no in-;
a year, pays

wages

the

it, the job of Congress is to re¬
verse
some
of the things which
have been done by law,

re¬

basis

just to all and
discourage the strikes which have
so
seriously .interfered with the

gaining.; In the early part of the
Century, all of the power of col¬
lective

put

that1

'and

total

that

taxes

: Of

increased

means

essential
come

salaries.

course;

costs,, in-»v

Jt. is;

personal an-;
by 20%, ,

reduced

and this can be done if the budget

does not exceed $34 billion.
The
has somewhat compii-..

President
cated

the

one-third

problem by removing
the excise tax on;

.of

Party last year supported a bill
to require labor unions to engage in

liquor and various other luxuries,

collective

stored.

bargaining and making

but

after

all

these

There

could

reason

re-}

why.,

them responsible in court for vio¬

the "budget shouldn't be far below

$34 billion, without interfering in

release the pro¬

ductive energies of industry, labor

ing contracts.; It is generally ad¬

mitted that labor unions desiring
agriculture.
Wes must
straighten out the finances and to be certified as collective bar¬

and

ately on all of these proposals so
a bill may be reported to the
Senate by March first.
The Com¬

that

must modify- lations of their collective bargainr

must complete the transition from
war

wishes

dress the

Republican

gram is
state in

;

>979,647.74

Other Liabilities

15, 1946.

It 'will

before

$ 2,245*287.97

Less Amount

secure

With -regard -to

had

program, I have no right -to
clare what that program will

Acceptances
Outstanding

Democratic

The Republican Program

l,350y000X)D '

*,*,*• *

Accrued

Expenses, etc,. ;

Congress.

the .real

compulsory arbitration.
;
:
fifty laws, some of them of \great drafted by -smart lawyers in the
None of these' four proposals
importance, like the ending!of the broadest possible terms /to give
unlimited
executive-power has
received
farm price guarantee in 1948 in¬ thte
as
yet sufficient
stead of 1949, and the repieal ?of which was the - very essence of study.
The Republicans propose
New
Deal
some billion and a half of excise
policy. If Congress that hearings be started immedi¬

^CONDENSED STATEMENT OF CONDITION,
DECEMBER 31, 1946

the operation of some

them

-the"people!a

are;of

administrative boards and confine

• and
fired ; Wilsbjh
He has just declared that
hostilities are ended and thereby

ing

•

any way

military

with the strength of our '
forces

throughout, the

world.;} Such!;!a

reductioh ! is the

-;y:> ■■■■,■:
v.-

Volume 165

4558-'/'"^",'

Number

■..■

•.

;

•

THE COMMERCIAL &
FINANCIAL CHRONICLE

•

Republican program.
Of
coursb,] come families unless public hous- 1 inclined as
tax reduction must be
Henry Wallace and
contingent ing is part of the overall program. the New
Dealers to make huge
the reduction of
expenses and
It should never be
oans on a scale which
necessary to
■balanced budget. ■
probably
i;<; build public
housing in an amount will never be repaid, but
they do
There are a number
of house- more than 10% of the total new favor reasonable
assistance to na¬
cleaning jobs to be done. We in¬ construction in any
tions trying to get on their feet.
tend to propose a

results
been

ment to eliminate
what is

and

something done to eliminate
the windfall claims
resulting from
Supreme Court opinions on
portal-to-portal pay.
the

feel

very

strongly that

some

action should be
taken toward the
unification of the armed
services.

] careful study of the different
plains proposed by the
Army, the
Havy and others should be imme•diately begun, and the best one of
those plans put into
effect. Action
.-should be taken to return
the en¬
listment in the
Army to a volun¬

rapidly

possible;

Unanswered Challenges \
And * so we come, to the broad

program

for

the

future.

After

fourteen years of unfilled

prom¬

ises by the New* Deal, these
great
challenges of our times remain
unanswered:
1. How

•'

eliminate; b u

.crises without

imposing

ess

.cialistic control to deaden
the
.productivity of! a free, system.

2, How. to reduce strikes
;

and turn

labor-management warfare
cooperation;

3. How to

into

Fojr Education

A ;

X believe also that there should
some
assistance by the Fed¬

eral government to insure that
no
child shall
be illiterate

simply

because

the

State

in ; which

lives is unable to
provide

quate education. If
effort

greater

ade¬

State makes

than

the

na¬

tional average and is still unable
provide the minimum neces¬

sary

give children at least

opportunity for a minimum edu¬
cation, then I believe the Federal
government

should

assist

State. In this

field,

in all pub¬
Federal

lic

welfare'

legislation
to

sure

that

measures,

should absolutely as¬

the States and

local gov

ernments,

complete power over
of their,, own
health and welfare.
Furthermore,
the Federal aid cannot be
so great
that it imposes a burden of
taxa¬
tion which deters the
very initia¬
the V administration

tive

necessary

produce '* the

taxes. I do feel
very strongly that
the
Federal
government
should

assist,

in. putting

floor under
absolutely essential services' I be
lieve the American
people think
a

that in

a country as
productive as
United States we can and
should eliminate extreme
poverty,
hardship and lafck of opportunity
for American children.

the

Export

trade;

based

lending

clear

is artificial and uncertain and in¬

great, the boom collapses 2 as it
did in 1929 and the resulting un¬

must

based

velopment
ports; v."

>v.
doubt

free

prohibitive
trade.

•

tarriffs*
-

•

measures for

serve

Roger B. Shepard,.
redesignated Chair¬

/Bank

of Federal Re¬

Minneapolis to
year ending Dec. 31*

1947,

■'

The Board of Governors of the

Fedeivl Reserve System also re¬
appointed W." D. Cochran, Iron
Mountain, Mich., as Class C di¬
rector for

three-year term end-

ing Dec. 31,1949, and redesignated
him
Deputy
Chairman
of
the

re¬

but

serve for the

fu¬

de¬

Dec,

man of the Board

trade

bank's

Henry E. Atwood, President, of

the

First National Bank

neapolis,

quantity and at such prices as will
destroy Cany American industry
providing a substantial part of
American consumption.. In other
words, we favor reasonable tariffs,
not

St.- Paul, was

nec¬

ture enactment.

make ourselves in such

through the adoption of

:
that

general affairs of the system.

pro¬

present ground is

and recommend

quire and will import huge quan¬
tities-of goods, but we
do not
favor - the importation of
goods
which

new

conclusion

and"; im¬

exports

■

There is

the

secur¬

sound

Republicans will

bring it to

essary emergency action. In
every
field they will invite
counsel from
the best
minds,, initiate studies

flationary. When the lending stops
as
it ; must if its extent is too

employment threatens the
ity; of the nation.' Export

soon

Federal

Reserve System on gen¬
eral business conditions
and make
representations to the board on.

has

member

; been

of the

appointed

Federal

directors

also

elected

First

Federal

Reserve

Bank

Commitee of the Senate under the

whose

Minneapolis

insure

serve

President of

appoint

the Federal Reserve

support of Secretary Byrnes' pol¬
icy in Europe and develop similar
cooperation in' other fields

effective Jan. Bank of Minneapolis assigned to
the
Helena
branch.
Designated
1,1947, as the District's represen
Assistant Cashier assigned to the
tative will confer with members

throughout the world where the

branch

"the Board

of Governors of the

Clinton

was

formerly Assistant

tunate

and

widespread

education for all our
people. In
short, how to make our Jcom-

So, also, in the health field, we
proposing a program to assist

the

MAIN OFFICE

FIFTH AVE. OFFICE

States and local
governments

Fifth Ave*

making their treatment of the
indigent and medically indigent

at 44th

140

St.

4, How to improve and
strengthen
the United Nations
setup to se:<> cure peace and justice

wish.to take it out. Qn the other

to live and work.

out

through¬

the

world

promising

without

the

liberty

nation'.
\

jrhe

" Republican

nizes

these

.good

society.

goals

cannot

Party

great

any

recog¬
of: a

goals

They
be

com¬

know

such

achieved

ance

LONbON

which attempts to impose a com¬
plete system of
compulsory sick¬
ness insurance on
all the people

They

to back whole¬
economic study and

propose

Full

by the

Employment Bill as that bill
rewritten by the
Republicans
in "Congress. Unless
business crises
can be
greatly reduced in inten¬
was

sity, they: fully 'realize there is
serious danger of
-this country
turning
to
regimentation
and

socialism

Whatever

adopted,
alt

solution.

labor

a much

may; be

broader study of
relations

employer-employee

promptly begun in the
labor; field,
calling iij the leaders
the groups to insure
coopand the best
expert ad-

oration

Vice,

myself

particularly

medical

the

care

committee

fields
and

under

ship made

prepared
of

the

housing,

education.

chairman¬

complete study, of the

long-range housing

cludes

interested

bill to

housing

cover

all phases

program.

increased

and

program

This in¬

government

sistance through
insurance and
otherwise for the construction
of
rental

housing,

urban

velopment plan which will
slum

areas

available

bousing, and a
housing program
ters

for

persons

rede¬
make

for

private
public
to provide quar¬
limited

with

subnormal

income. I intend to
join in

troducing
though it
them

into

posals.
if

rein¬

these

may

measures, •; al¬
be wise to divide

several

Nothing is

different
more

pro¬

important

wish to give children born
in the United States
an equal
op¬
we

portunity to make progress in life
..than decent home
conditions. Be¬
cause

of the

cost of

impossible in

United

all

the

people

the

housing, it is

my- opinion to. get
rid of the slums and
provide de
cent
housing for the lowest in¬

Foreign Loans

In the field of

}
so

much

...-

j-. ?/<•

1,340,421.55

90,000,000.00
170,000,000.00
61,627,360.90

.-/••.

26,640.002.24

Liability as Endorser oh Acceptances
V-and Foreign Bills
; j.
1
.Dividend Payable January 2,1947
Accounts Payable, Reserve for'
*
;5
Expenses, Taxes, etc.4.
v*.'.

321,627,360.90

32,754,549.39

....

$2,474,873,455.90

„

Outstanding'
Deposits
^

Total

2,501,513,458.14

;

14,946,674.58
7,197,508.18

7,749,166:40

360,950.00
2,700,000.00

♦

26,671,384.35
:

37,481,500.75

Total Liabilities j,. 1
>

Securities carried

powers, to secure

public

of December
•

moneys as

26, 1946,'

v'.';V

;

.;.

•

$2,893,376,869.18

$160,926,707.40 in the above Statement

This Statement includes the

;;

10,0.28,784,44
1,395,134.98

foreign trade the

Republican Party is not

Less: Own Acceptances Held for
/
Investment

the. price of industrial
products.: S e ve r a 1 .Republican
committees have been
working on
this subject, and a
program will

...

....

Acceptances

pres¬

$2,893,376,869.18

Treasurer^ Checks.

During

1948 session.

121,336,098.25
4,899,793.78
145,153.86

Deposits

program,: 'designed to
keep the general average
level, of
farm
prices without

probably be developed for;;

Total Capital Funds
General Contingency Reserve

permanent

entation to the

LIABILITIES

and the development of a
per
manent agricultural
program. For
two years the government's
guar¬
antees of 92% of
parity will as¬

subsidy

7,800,000.00
11,135,777.33
7,749,166.40

81,886,813.55

.........

One of the: most serious
prob¬
lems relates to
agricultural prices

with

Capital
Surplus Fund
Undivided Profits

Agricultural Needs

out

•

568,371,041.22
1,451,254,460.95
747,370,321*12

Total Resources

•

work

«\

Bank Premises

tion, directly subject to political
pressure.:;-gHf>:V
; i
■$'f'

must

;

Other Real Estate

organiza¬

farm'' prices.

Branches)

We are also
proposing a meas¬
ure to set
up a permanent scient¬
ific foundation to
promote re¬
search in many fields. Our meas¬
ure creates a
scientific council of
50 leading scientists to
select the
director and determine the
scope
of the work. This is a
substantial
modification
of
the
OKilgore
Magnuson bill of the last session
which authorized the President
to
appoint a director with 15 bureau
chiefs and an elaborate

••••••....

(and Net Difference in Balances between Various
Offices Due to Different Statement Date of
Foreign

principle for "which the Republi¬
Party-stands.

time

•

.•

Bank, and Due from

Receivable
V.
Real Estate Bonds and
Mortgages .
Items in Transit with
Foreign Branches

terfere with the
daily lives of the
people. It flies in the face of
every

line

»-

.v.

(■

Credits Granted on Acceptances
Accrued I nterest and Accounts4

other • measure
before
the
American people proposes such a
tremendous increase in the
right
of the f ederal government to in¬

i■ good

..V

Stock of the Federal Reserve Bank
Other Securities and Obligations «

sure

."'.J;-.--

;

is not only
medicine, but it
the federalization of medicine

that

H'.

Loans and Bills Purchased
Public Securities

States." It

socialization

BRUSSELS

•

RESOURCES

.
..

can

bill

should be

of all

....

the United States. That
plan
would tax the people to raise four
or five billion
dollars a year to

PARIS

•

Cash oh Hania, in Federal Reserve
Banks and Bankers
;
U. S. Government Obligations

give free medica

constant report required

Condense^ Stateniient of Condition, December 31,1946

care

heartedly the

;

hand, rwe ;strenously> oppose"the
Wagner - Murray - Dingell
bill,

study.

,.'

to be available to those who

;«mpty-promises; and they propose pour into Washington to be used
by a Federal bureau to. pay all
to- deal with them
by legislation the
doctors to
and

40 Rockefeller Plaza

systematic and complete. We
should encourage the formation
of
plans for voluntary health insur¬

ROCKEFELLER CENTER OFFICE

in which

\ munities better places

MADISON AVE. OFFICE
Madison Ave. at 60th St.

Broadway

are pledged to
qualify for fiduciary
required by law, and for other purposes.

resources
-

and liabilities of the
v

English, French, and Belgian Branches

Member Federal Deposit Insurance Corporation.

Larson,

Manager.

Health Assistance
are

two-

ment is for one year

were

Jacobs,
President
of
Bank,
Missoula,

.National

year terms. Directors of the Min-.
neapolis Reserve Bank also elected
Robert E. Towle,
formerly man¬
aging director of the* branch, Vice-

Minne¬

/'Mr. Atwood,

Mont. They will

ena,

apolis. The announcement by the
Reserve Bank also said'. j _j~

leadership of Senator Vandenberg will continue the bi-partisan

1947.

dent

Mills, formerly Cashier, as
Vice-President and Cashier of the

/ ;In the general field of foreign
political policy, I have great con¬
fidence that the Foreign Relations

year

Mont., and E. D. MacTaffie, Presiof State Printing
Co., Hel¬

Al¬

bert W.

the

announced on Dec. 28

was

Theodore

28.

The

for

eral Reserve Bank of

Advisory

Council by directors of the Fed¬
eral Reserve Bank of
Minneapolis
the Bank announced on Dec.

not

board

Appointed directors of the Hel¬
ena, Montana Branch of the Fed¬

Min¬

/ :

constantly improved
sustenance, - housing,
; medical
care.; greater; security
?; for the v aged and the unfor¬

teer, basis

Aid

left of

the poll tax as a
condition of vot¬
ing in five or six States: The min¬
imum wage law must
be revised,

short, the

not

set in motion at once
as

have

satisfactory.

gram, and

yearv;fV;p:'.y;

Constitutional
amendment limiting
Presidents to
two 4-year
terms; also an amend¬

to this time

152

-■

.THE

'Ml

COMMERCIAi; & FINANCIAL' CHRONICLE

Thursday/ January 9,

posal for

a conference to consider
revision of this part of the Charter
was
also rejected as premature

The United Nations and World Peace
_

century European who had

(Continued from page 132)

civilization

everything. They underlie all
other problems. On their answer
depends whether we live in an
atmosphere of peace or war, dis¬
sipate our wealth in a huge mili¬
tary establishment, conscript our
youth, prostitute our minds with
fears and aggressions, tax our¬
selves to the hilt—and eventually

flower

exactly

most dread.

noticed

venturous

all

the

would

point about

The

the

United
ex¬

the

United

first

World

States

Struggle
For

of. the

half

"to

refused

days

delegates at this Assembly

the

have

fought and struggled. It has been

hard, bitter going. The physical

19th-

hour

were

each

in this first year Of the'
agency's
greatest:
and each experience. The debate threw into
and from sharp relief the cleavage of prin¬
And then ciple which exists between those
like
the
United
States, which
intermin¬
would apply the veto* only at the
regardless
last
moment, when
the, Great
dinner hour and

of the

morning
evening just to get to
the place of meeting.
long, sometimes almost
able debates going on,
of

the

lunch

doubling up at the end to night
and Sunday sessions; the innum¬
erable difficulties of always two,
often three, arid sometimes four
languages;
the
differences
of
parliamentary rules and practices;
the mental effort of even trying
to

what

understand

people

other

the

aiming at—it was a
tour de force even to keep this
vast machinery moving at all.
were

But

all

above

mechanical

the

recent, war; the Arab world
is awakening to an asser¬

which
tive

nationalism;
the
colonial
which is seething through¬

world

out

its

of, millions

hundreds

peoples;

Western European
struggling to rise
again within its now shrunken
confines; even our own world
which

the

not

The

•

State and

'•

Municipal Securities

Other Securities

Loans and Discounts

....

;

Customers'Liability for Acceptances

.....

;

heat

the

out

the 5 council

across

and

the

four

can

corners

that

seen

the

great

residue remains for the construc¬
tion

the

world's

edifice

Peace,. The foundations have been
laid and

of the

some

buttressing

walls put in place. The structure
never
be complete as long

will

246,647.24

mankind

;

survives

this

always the hope will be

planet;

| $588,383,751,7$

that

LIABILITIES
•

•

the world the walls will be

Dividend

,1,

6,604,001,65

Payable Jan. 2,1947

v..'

Less: Own in Portfolio
v

Deposits

...

few
•"

242,310:32
552,052,882.94

public arid trust deposits, and for other purposes ps,
or

permitted by law,

>',?'/
:

-V'-f

■■

the

treatment

urged

ments,

such

Indians in conformity with treaty

obligations, and requested a re¬
port from the two governments
at the next Assembly.

The

Trusteeship:

last prin¬

cipal agency provided for in the
Charter signed at San Francisco

countries and viewpoints come to¬
gether. A Russian proposal for a
census
bf troops in
non-enemy
countries, which had been em¬
barrassing to some and suspect t')
others, was widened by successive

additions

during

armed

cover

the

forces

debate
and

arma¬

ments
but

everywhere, not only men
materials, and hot only abroad

but

dict

home.

how

far

one

this

can

pre¬

will; get;

at
least it is a start oh a long, long,
road. And the Security Council at
last has a positive task to perform
in place of the somewhat stale
debates

which

paralyzed

last

the

results

achieved

cover

these

' j,

highlights:
Veto:
most

Let

/ ;

take this first

discussed

and

least

Assembly and the Commission ac¬
complished any real result or re¬
sulted only in a polite platitude.
In sum, the Great. Powers, which
alone
possess ; the • veto,
were
merely asked to make efforts to
limit its use voluntarily, but not
before there had been a great

mandates under v;

which exercised

the

League

Nations

growing

out of World War I, and were now

prepared

convert

them

into

trusteeships under the United Na¬

tions, were approved with modifications, and the membership
of the Trusteeship Council made

definitive, with the first meeting ;;
not later than March 15, Also, de- w

arrangements were worked
receipt and handling

tailed

;

out for the
of

information

from

other

non-

self-governing territories, which
may turn out to be one of the big
of

advances

the

Charter.

But

South Africa was refused annex¬
ation of the territory claimed and :

Atomic

Energy:

Here

matter

specifically for the
Council, there can be

Security

•

the'presence

of the

The

discussions

have

been

and laborious over a 10period, weaving back and
forth from the; political to the
technical, and were obviously dis¬
appointing to many of the Assem¬
month

bly delegates, but at least they are
under way and the world will
soon
know
objectively where
they stand,
.

4. Political: Almost all questions

in the United Nations have a po¬
litical ; coloring
now
that
the

requested to place the territory
under trusteeship,
submitting a

specific agreement to this end. The
United States proposal did not
in

for

public discussion at
would classify the
Pacific Islands as a strategic area ;■/
rather than a simple trusteeship
and
must consequently be dis- /
come

this time, as it

cussed with the
.

Security Council.

6. Economic and Social: Here a

vast field

was

because

covered with very

unequal progress. History's great¬
est relief agency, UNRRA, had to
be allowed to pass out of exist¬
ence

the

withdrawal

of the

United States, the largest
contributor, but a Special Tech¬
nical Committee was appointed
to survey and advise on continu¬
ing necessities and an important
International Children's Emergen¬
cy Fund was authorized to care tor
this most poignant part of the
problem, Refugees and displaced
persons were once again buffeted
around

the conflict of princi¬

ple between the Western idea of
closely right of asylum and freedom of
predomi¬ choice of residence, and the Eastnantly so, as the Spanish problem ern idea that many refugees are
which has plagued: the world's political
agitators
and
should
governments ever since the revo- mostly be returned
home, but
lution and the unsavory non-in¬ eventually the Assembly provided*
tervention days.
Again pressure for the creation of the Interna¬
for outright severance of diplo¬ tional Refugee Organization, with
matic relations came from two op¬ a budget of around $160,000,000,
posite ends of the world: The which however,
must still be
Soviet group and the Latin-Amer¬ raised. The Assembly had better
ican, but the -United States and fortune in ,;steps ,to coordinate / *
Britain were firmly against such action regarding the recon¬
action, feeling it would be, more struction of war-devastated
effective in securing what every¬ areas, in mee tin g the world
'
one wanted if, as long as Franco
s h o r t age
of cereals, and for
remained in power,; Spain were
raising the world's standard of; !
debarred from all United Nations living. So also in the field of in¬
activities and her people invited ternational law, there was greater
to set up a provisional govern¬
unanimity, including creation of a
ment
to
hold
a
free' election. committee of experts ta work out

ideological
drawn.

lines

But

are

some

Eventually the Assembly passed a a precise program for its pro;
resolution debarring Franco Spain gressive development, a beginning
from all United Nations agencies, on an international agreement on
;
clarification of the views of the
recommending that mem be r s human. rights, another agreement
other: nations and a sharp criti¬
^withdraw their, chief: representa¬ to classify "genocide" as an inter- ;
cism
of • recent
practices. ' The
tives from Spain and leaving to national crime, and arrangements
sharpest proposal," involving a
the Security; Council any further for continuing the League of Na;
definite condemnation aimed at
measures.
•'
';'"tions' very effective treaty regisr;
Russia's free use of the veto,: was
rejected under the strong urging { The Greek issue also came be¬ tration, and its studies on the. ;
;
of the United States and Britain, fore the Assembly in disturbing legal status of women,/ In the
social
field,' the Assembly ar¬
which, while not: agreeing .with echo of the Spanish and with the
appeal - bf • the • Greek ranged to take over the; League'^;.
what had been done; nevertheless dramatic
against
bends valuable work as regards narcotic ;
wanted no word of -reproach tor jprime- Minister,
the past. Similarly, another pro¬ claimed r to be c invading Greece drugs; together with considerable
.

;

•

://'

V FEDERAL DEPOSIT INSURANCE CORPORATION

26 Offices Loca ted

end

Finally, in another* passionately
debated issue regarding the ^
charges of the Indian Government ; i;
against the treatment of Indians . :
in
South Africa,' the Assembly
noted the impairment
of reia*
tions between the two govern-;,;'

../..,

was

frontier.

turbed

■XXX- J MEMBER: N. Y. CLEARING HOUSE ASSOaATION
FEDERAL RESERVE SYSTEM

go
on
for a
whether the intense debates in the.

Securities carried at $10,$58,717.23 are pledged to secure
.//*.
U. S. Government War Loan Deposits of $7,770,565.45 and \
I

required

Results Achieved

will probably
long time as to

$588,383,751.75;

other

clarified;. Argument

1,868,192.77

as v

$4,115,786.93

sweeps

long meetings, let me mention a

4,788,234.69

2,247,594.16

that

storm

While it is impossible

all

553,129.38

Other Liabilities

;

275,000.00

Unearned Discopnt. / \

Acceptances

$28,604,001.65

Reserved for Interest, Taxes, Contingencies

;

„

22,000,000.00

12,375,000.00

Undivided Profits

each

strong enough to protect us from
still another world conflict.
:itJX

$9,625,000.00

•

over

which might

events

ginning in order to prevent it
creating an insurmountable diffi¬
culty. As one delegate put it, how¬

Now that all the smoke is clear¬ long
a Way and the delegates are

globe, it

1,272,241.66

Other Assets

started

chain of

little doubt but that

train

2,183,001.791

>•

Surplus

once

need of armed action, it was nec¬
essary to control it from the be¬

mo¬

scattering by plane, steamer, and

1,219,577.10

Accrued interest Receivable

Capita^

that

lem.

860,000.00

the

ing

Stock of the Federal Reserve Bank;

Banking Houses

veto; and others, like
which have always held

Assembly, with its uneasy
and unsatisfied delegates from all
the
not made in this way; it is when over
world, constituted a
nations withdraw from the coun¬ powerful pressure which led the
cil table, as we did in 1920, or Security Council to decide to re¬
Hitler in 1932, that the danger port to the world on Dec. 31 just
where it stands with this prob¬
flag, must be run up.
;
-/ ;;l
,

138,864,947.11
^

from

Russia,

were

1,530,400*87

(

motives

8,^42,203.851

hardest

international

speak
bluntly what
really is in their hearts! Wars are

31248?,737.05

'•

.•

,,.

leaving all the prelim¬
inary steps of peaceful adjustment

free

table

$121,974,995.08

U. S. Government Securities

the

measures,

face

' V'.V v•

with

enforcement

again
ment; the policies of Rations, in¬ you will be reading in your New
Years Day papers an. interim re¬
cluding* our own, were indicted.
Some dieplored this, and perhaps port on: this »most awesome of
there'was at times too: great a problems. While Atomic Energy

RESOURCES
.

license, but how fundamentally
healthy it is to have the nations

December 31,1946

Cash and Due from Banks

its

conflict

the

were

Bad

ascribed

./V:)
*

that

and

debates

records.

STATEMENT

*,«•.»'

-•

immediate

and the harshest in

CONDITION

see

surged back and forth, even over
apparently insignificant questions.

NEW YORK of

X'i

seem

clearly. Small won¬
der, indeed, that agreeihent was

AND TRUST COMPANY

CONDENSED

not

does

at all

course

The Public Rational Bank
Main Office,

confronted

are

world which is

;;

Powers

responsibilities

Security Council went at length
the matter and decided, on
the immediate dispatch of a Commission of Enquiry to the dis¬
into

a year and a half ago, the. Trustee¬
problems were the political and
ever, the veto is not the disease;
ship Council, which it had not
psychological. The world is yet it is
only the-symptom of the lack been possible fo create along with
far from peace. The echoes and
of
confidence which exists be¬ the others at London, was at last v.
fears of battles still reverberate;
tween nations.; T; a:'
put into place. After long and /
The international community is a
often bitter debates, which were ; .;
long way from having settled •2. Disarmament: Here, to every¬
by South c
down. There are huge areas of one's astonishment, a beginning perhaps stiffened
Africa's
claim
to
annex ; Ger¬
uncertainty:
the
Soviet world, was made. Almost no one would
South
East Africa
have predicted it before the ses¬ man
and;/
which may not revert ' itself be
America's unexpected proposals for
sure where it is going
after the sion; the result is another illustra¬
the Pacific Islands, the agreements
tion of the power of
terrible convulsions which have
spontaneous
shaken it since the revolution and combustion when men from many submitted by the other Powers

the

Assembly

hundred

difficulties

neighboring countries. The

from

War,

host of the United Nations."

out from his

even

the

join the League of Nations aiid
our seat was empty at the first
meeting of the League Assem¬
bly. This time the United States
is not only a member; it is the

hills to the far confines of

follows:

"After

Aegean. Or, the Roman Sen¬

Empire!

President

natibns

striving to bind together into a
single nation the 13 scattered and
bickering colonies! Or, on the
other
side
of
the
world,
the
/ancient Greek who had watched
{his triremes set sail from his cen¬
ter of the world into the treacher¬

$iis

pression to this startling reversal
when, speaking from the rostrum
of this great meeting, he wel¬
comed the delegates of the world's

they were struggling to
Or the Founding Fathers

he looked

such

Johnson, who

States gave the most succinct

the world would move onwards to

seven

own

keep our country out of
organized community of na¬
tions, as King Canute tried to
stop the tides.
'

the

ator as

Hiram

our

the

{the .rocky, inhospitable shores to

ous

search of gold
of

incredulous

tried to

course

cling!

Most

California's

American soil, How true in¬

which

ad¬

probably be
isolationists

later-day

saying that "Westward
of History holds its
sway." How little would the Pil¬
grims have anticipated only three
icenturies ago that the capital of
the

his

fellow-countrymen

seas

riches.

and

the result we
•
'

The first dramatic

deed

seen

richest

going out into the barbaric lands
across

this first meeting for us as Ameri¬
cans is that it took place on our
own

its

his continent and had

scarcely

arrive

reach

1047

'T.

Throughout Greater New York

Volume 165
social
and

work

Number 4558

THE COMMERCIAL & FINANCIAL CHRONICLE

initiated by UNRRA

otherwise

now

tainly of

terminating.

number

Finally, almost unnoted, it author¬
ized the
convening, before the end

1947, of

ond

7. Organization:
Finally, the Assembly did a
lot
of
essential

elected

the

four

can

world

this

■:!'■

the chances

are

mechanism

and

ef¬

the peoples of the

spare

another

mem-

war?

foers, Afghanistan, Iceland, Sweden tablishing the United Nations..
1} and Siam, bringing the total memMy own very deep and sincere
bership to 55 states. It also elected conviction, based on continuous
3 rotating members of
the Secur¬ association with this type of work
ity Council and 6 of the Economic since the first Paris Peace Con¬
-

;

and

Social

the

Council.

small

;

the

and

peace and

if the

war

prevent¬

governments

and

particularly the peoples of the
world make it their vital
interest
hat it do so. A
fighting chance, I
a
good
fighting

repeat,
even
chance, but by no means a sure
thing. No mechanism conceived of
is

man

infallible, and

political

the

least of all

mechanism;

even

our

Staff; approved arrangements own superb national constitution
did not prevent) the cruelest civil
with ; the ? Unite d? S t a t e
s,
war in
history, nor would anyone
Switzerland, and Holland on mat¬
oday say in face of all our strikes
pertaining respectively to the
and maladjustments that
United Nations, the
we have
League of
established unbreakable peace at
Nations,
and
the
International
Court; formally approved the ap¬ lome.
Let
pointment of the eight assistant
us
be
very
sober
and
ters

solemn about this; There

Secretaries-General;

made \ other
necessary administrative arrange¬

peace

ments

governments

and

sufficiently.

But

to the

for

personnel

3,000 mark; adopted

cial emblem for the

now

offi¬

can

amongst the nations if their

peoples will it
is

peace

not

date to the third
Tuesday in Sep¬
tember. Finally and most

tant,

battleships,

changed its

organization;

annual

meeting

impor¬

approved

ments for

the

arrange¬
over all the re¬

taking

maining assets and functions
; the League of Nations.

made,

however,

quarters
rafter

months

%. considerable

•

wandering,

permanent

head-

long last,
uncertainty and

? United Nations is
5

the

problem. 'At

home.

one

the

moving towards

the

This

most

proved

difficult

problems that the Organization
?had to face, for the
very good and
simple reason that there is no one
place in the world that is ideal
from all points of view as
a world

headquarters,? and

there

are,

the

contrary, strong arguments of
distance, of scarcity of housing, or

politics that can be invoked
.against almost any specific provposaU Last January, the fateful
■I -decision was taken,
first, to locate
?
.

somewhere
and then

chester

the

United

specifically in the
New

area,

York,

generally accessible.
headquarters
were

immediately
area,

then

York

proved

decision

West¬

most

Temporary
transferrec
New York

to the
first to Hunter
College and
to Lake
Success, but "New

somewhat

States,

very

congested

and

overpowering, and the

was

taken at this Assem¬

bly to widen the search to include
Philadelphia," Boston, and San
Francisco. The Commission
visited
the four areas in a
quick air trip

battles

Guns,
always

are

thrilling

than the softer,
activities of peace;
they
make one's blood throb
through
his veins as does no
agreement in

quieter

8. Site: Special mention must
be
5

conference,
There

how

vital.

certain static milk-toast atmos¬
phere about peace which is
very

hard to
self

overcome.

unmistakably

the journalists
out

This shows

the

few

the

it¬

press;

predominantly seek

lines

conflict

dispute; there is little news, and
certainly still; less excitement,
about

destructive tendency which drives
on from his ancient
past to

him

Such?

awesome ? experiments
Bikini. It is preposterous for

any

to think; that peace can
be assured all at once or without
one

the

most

supreme

mankind has

effort

which

put forth in all
age-long evolution.

his

ever

The United. Nations is

mech¬

anism, a good mechanism,
but
only a mechanism. It will not op¬
erate by itself any more than will

ang both equal merit. The
Unitec
States then said it would
be glac
to
contribute the Presidio
site

direction to guide it. It will
go as
far
and
as
straight as, but no

Pacific

Coast; the
States; declared
flatly in

^•United

favor of the Atlantic
Coast as mosi
accessible to the
principal Unitec

Nations

members;

Rockefeller,
with

Jr.?

Mr.

dramatic offer

?? 500,000

site r in

York; and

the

John

forwarc

came

mid town'

$8
New

Assembly iftimedi

ately and unanimously seized, on
it as the only
generally acceptable
? way out of
;

It*

insoluble difficulty
will? take? four;.;years ,to

build

the

new

meantime

the

plant

temporary

quarters will remain
At

the

same

.required

head

at present

time; the* former

f * League buildings at; Geneva have

fopen fully!
6

{taken

qver

^and

will

be'the seat not only qf an
appre
ciable Secretariat but almost cer

can

use

false

thing
selves

not.

The

delude

worst
our¬

pretenses to
build false hopes. It is vital from
the very outset to
recognize that
the United Nations is not a
gov¬

ernment,
eration

but

method

between

coop¬

governments.

does not have

been free
where

Geneva

United
it

Nations

cannot

im¬

Already

that

draft treaties or
recommendations
which can be enacted into
laws if
the soverign states so
desire.
It
cannot.tax even for its own in¬

enough!

significant expenses;; it
contributions from

member

other mechanism. It requires
both fuel to give it
power and

farther and

governments

straighter than, the

and

peoples, of

the

world demand. Whether it is able

to achieve its great
goal will? de¬

pend in part
in

government

the skill of those
who

the

massed

world's

has

Merely
Natioris,
charter
then

proclaim

to
as

sit

San

back

about

declaring

war

serve.

United

beautiful

Francisco, and

expecting
as

peace

sinful

and then sitting

awaiting

victory.

world's great boons do not
as

interests

the

fatuous and

and-

draft

back

whose

established to

the

? will-power | of ? the

millions
been

are;

steering-wheel, but still

actual

not

hold

responsible

the

for

own

Nations should admit

with

weaknesses.

Nations

feel, and

even

concentrate

the

devotion,

the

not

ignore

Nations

is,

effort,' ap$

short,

let

such

central

(Continued

154)

page

give

world

organization. The organization it¬
self

cannot

held

blame for

this. Nationalism

runs
very deep;
fear and mistrust of the
foreigner
is
very; strong; few peoples are

STATEMENT

willing

to
give
control
to
an
agency which they cannot them¬
selves control or at
least check

Many, of

critical

1945

San

Francisco

CONDITION

DECEMBER

the

''':/.?>?-■!?"/hiI'*'?•: '.v
Cash and Due from Banks V1.

United States Government
State and

-"•?

.?.•'?

$ 88,517,473.71

.??

Obligations. :

Municipal Securities

525,000.00

Other Securities^.

demanded

?? 5,672,015.64

Loans and Discoun ts

unanimity amongst Great Powers

«.*.

123,526,742.11

3,523,281.26

„

•

...;»?.

Mortgages

sine qua non, of our member¬
ship in the United Nations.

Customers'

Liability

Acceptances

League of

Other Resources

Nations

547,988.98

;

174,855.27

Some have said and
many have

$315,702,580.43

that

radically different document.
be

natural

li a d 11.1 t ie s
•

greater chance of

Other Liabilities

of the

most

sacrifices

They

were

familiar

that

previously

•:
•

there

got to be fought for with utmost

impiwgment
tional

less

sovereignty,

Executive Committee.

?;?'

Chairman,
••

•

JOSEPH, p.. ROUT.H
;:
Chairman and President,.

Trusty^

•EHSTAOE
r

Barringer & Brooks

■

Chairman
:

The

•

Executive Vice President and

Secretary

1????!

herbert h. leonard

'¥■

President, fy.-it
Currier Corporation

4v'

ETTE S. W It ICHT
Vice President, CurlissWright

HENRY J.WYATT

Corp

Executive Vice President,

■'
■

-.4.?

•
,

MAIN; OFFICE-120

128 Chambert Street
•:

£, 1

BROADWAY

H:*V'*410 William Street

Battery Place

emphasis

•

;?
??? V??"?

Crum & Forster

na¬

» ,.4

J3UIt D

4 ;

CLOUD WAMPLEK

President, American Machine &

Foundry Co,

Sullivan £ Cromwell

JIARR AL S. TENNEYi '

of the Board,
• V : 4
Marine Trust Co. of Buffalo

?:"?

Honorary Chairman nj the Board,
Irving Savings Bank v

' V

SEYMOUR H.KNOX

-ft-'

SEI.I CM A N

HAMPDEN E. TENER
I

Buffalo, iV. Y,

JOim C. JACKSON
Jackson, Nash, Brophy,

■,

i TMPiUHtM Company

un¬

transfer

on?unrestricted

I ice

PAUL II. IIUSTED
♦

repudi¬

central agency, less

BAYARD F, POPE

.' "

edjvard l. fuller
;
President, International Salt Co, t

inclined to believe

was

Neto York City

of the Dt>ard, 1 ',v

President, The Marine
-Company of Buffalo

authority to

LETCIIWORTH<f.

F. A.McKOWNE

It is, of course, argu¬
am

statement

Ker.efick, Cooke, Mitchell,
Bass & Letcliworth,
Buffalo

made.

seeking to follow

and

able, but I

had

above

EDWARD II.

CHARLES Hi DIEFEND0ItF

for organized
inter¬
cooperation. It was not
do so; adaptations and

easy

in, (tie

.....

movement

even

? 290,069,131.22

BAIRD

Chairman, Execulue Commit lee

bring these two nations into the
national

11,986,371.00

to secure V. S. IPar l,nitn Deposits
of $4,160,733.50
ppblic deposits arid for oilier purposes tetptireJ hy Into,

samuel s. coNovr.it

per¬

was

Chairman

World War

;

ttirriM Jit $9,900,00^.00

"; General Reinsurance Corp.

permanent, results

second

EDGAR If. BOLES'

•

haps the

JAMES G. BLAINE, President

single
control,

and

Vice President Marsh &
McLennan, Inc,,.^,'.^ l~

fortune to

greatest,

DIRECTORS
DAVID

which, except for a
few years for the
latter, was de¬
nied to the
League through no
fault of the
League.
the•'

\dctlfitd

and other

two most powerful
nations in the
world, the United States and the
Soviet Union,

$ 20,717,286.88

;

:w,,...

$*euritirs
arc

membership the

One

3,217,286.88

$315,702,580.43
k

namely, that the United Nations

has the supreme
good
have within its

12,500,000.00

2,162,019.65

Deposits

that that is due not to
any con¬
stitutional but rather to a
political
reason.
The difference between
the two agencies lies in a
own

.767,771.68

success than the

their

Liability on'Acceptances

League was ever permitted to
have, but it is vital to any under¬
standing of worldrlife to: realize

outside

.•

Provision for Taxes, Interest, etc..

far

ooo,ooo.oo

= •

Undivided Profits

That

assumption

League; of, Nations... It has

Capital;
Surplus.

and at least a
partial recompense,
for the
unprecedented sacrifices.
But it is not
true; the United Na¬
tions is
equally an association of
sovereign states subject to
many.of
the
same; weaknesses
as
the

factor

706,940.52

♦

Accrued Interest Receivable,,.

Comparison With

would

92,295,352.03
?: 212,930.91

Stock of Federal Reserve Bank

as a

assumed

31, 1946

RESOURCES

for

are

Member Federal

4.;4'':4v.;;'44l43 liberty Street

Park Are.

46th Street

Depqs't Insurance Corporation

if4;. v;;t;' :"yfy'y

;

In¬
be

uncooperative, ap*t

such, lies not

ready

publjc

this

respon¬

world, who, despite the horrors
of two world wars in
one genera¬
tion, are not yet
power

can¬

government

your

reactionary

points,

to? support

groups

stitute,

but rather with those
creators, the
and peoples of the

^Qur

(it, elect hostile publfp

fail

opinion

would

good

that

officials,

prefer, that I should

United

personal responsibility. You

United

Many

the

of working without

one

readily to

security

the

ated paths.

devotion; there

four

that
sure

constant care, thought,

myself who has had nearly
23 years with the League of Na¬

its

the

feel
not

and

false

worlds. I should like to make ypip

far

that

objectively

with it and pot

United Nations,* which
only what its creators made
it,

consecration

and

curious

seem

and

goiqg

are

that this is the best of all possible

far,

right to knqvf

where you stand
be lulled into

attacked

not

you

cold-bloodedly

.?:,?£•,• ????v\.?;;y?..V.:?

tions

United

that:

sibility, if there

The

as that, and least of
all,
greatest boon of all. Peace has

does

you

come

cheap

the

only

say? Yes, very weak
delegated powers. But

too

your future,
ultimate the kipjfi

directly opposite direc¬

may

such

Weak,

went

can

states.

with

controls
the

to live. You have

light in this country, that where
;he League of Nations was at¬
Nations

it
in

of world in which

seems to justify this
view; it
interesting to note, as a side¬

the

ask

Nations:
decides

the

because

even
be criminal in these sober
days. This is, in fact, your United

bly

United

mope

would, I feel, not only be
irresponsible Pollyanism; it would

ground-swell
of world opinion which has
surged
;:orth at the First General Assem¬
: s

would
you

that

ate to overcome the first
cautious

fears.

tions would do it all for you. But

it and gladly paid in the
conviction that time would
oper¬

from

merely recommend.
laws; it can only

worth

tion

can

simply to pick

gone on with these
in mind. But the
price was

essons

It cannot make

pose;

powers

they had left off

certainly

if I did
.
said you have nothing to*
worry about, that the United Na¬
if

and

the United Nations
agreement. Peace is, after
all, the last great pinnacle, which is based on a different principle
from the
mankind has never yet scaled,: in
League of Nations, that
his long climb upwards from the we have used the
experience of
the League and the
swamps to civilization; there lies
horrors of a
deep within him another and more second World War to hammer out a

any

as,-the

what

Russians

matter

deep

finally recommended Phila
delphia and San Francisco as hav

away

and

lad
::rom

their insistance on
psychological
the veto; we seem
law here which
to forget that
probably dates
we
back to the terrors of the
ourselves refused in 1920 in
jungles
and
which
certainly has never ^.Washington to join the League of
been sufficiently studied as one of Nations because
,wetfelt it might
diminish our
the deterrents to
sovereignty and in
peace; there is
a

and

free; Soviet Russia announced it
? would not send delegates as far

the

and

comfortable for

case

governments

automatic. Quite. on
Ijhe contrary,
there is some justification
in Mus¬
solini's cynical remark that
it. is
against
human
nature.

nnd

tacked

super¬

Organization

essential

moment, I think, is to understand
just what the United Nations is

the

preserving

ing

regarding
the
dip¬
lomatic rights and
privileges

for

greatest

Government

The

fighting chance

vision of the' budget of the dozen
or so associated
agencies; exam¬
ined J; and ,approved
the
draft
convention ?

strative and Budgetary Committee
for
first
consideration
to
such

;

The

Not

;han would have been the
;he
League-experienced

entity and being in
a
stratosphere of its own; it is an
emanation, an extension of, even
a
bridge between, governments.

Admini¬

problems; took steps for the

unanimity and veto, less full
;rusteeship for dependent peoples

ference in 1919, is that the United
Nations has a good

approved

budget for 1947 totaling $27,-

740,000; named

?? UN

?.'?

sec¬

That, after
all, and not the minor matters, is
he key purpose and
object for es¬

Organiza¬
new

all

fort

tion.

BeW/fvi

must ask that

question: What

that

housekeeping for

now

is,*as President Roosevelt well put
it, no easy, royal road to peace. ?

Prevented?
And

in all the principal fields
of press,
radio and films.
*
'

conferences.

Will Another War

world conference to
freedom of information

consider

constantly increasing

•

;

THE COMMERCIAL & FINANCIAL

154

Mankind is indeed engaged in his

The United Nations and World Peace
(Continued from page 153)

human

;

[still.expect your United Nations to
[do its job. It will not; there lies
|the road to another world

family who might other¬

wise neither hear

their

be heard by

fellow

human:, beings, on
one way or
another,

whom, in
their fate and future may depend.

war.

Not Doomed to Failure

But

Sees

does

this

lack

But the United Nations will not

continue

tions is of secondary importance

loose

doomed to failure? The
mswer is
flatly no. The nations
zan/agree to anything they want
to agree to, including specifically
jiving the United Nations more
lirect
power.
But even today,
nth its present powers, it has imlense strength and influence and
>r; even

the

most

world's

states. The whole

never

powerful

from

than

Intended, the first steps have been
taken
towards
disarmament,
a
>eginning has been made on con¬
trolling the atomic bomb, the wel¬
fare
of
dependent peoples has
>een advanced, and world society
:nit more closely together in a
hundred
different
ways.
The
Jnited
lower

clearing-house,

jperative center, and
lobilizing

immense

has

Nations

the

co-

place for

move

the

other,
backwards, but
or

dead center. If it is for¬

means

history's most terrible war#

Specifically, this does not
of

as some

our

,■

-s

mean,

most sincere people

feel, that
everything up by
seem

experience
and
confidence.
If
they did not advance any more
radically in the United Nations
over the League
of Nations than
they did with
II

War

World

all the horrors of
echoing in their

ears, they are not likely to take a
huge, sudden step in the relative
quiet '.and
let-down of peace¬

have to dig

all

over

violent

tired

ndely scattered elements of the

operation

world

operations,

violent

but

who

want

improvements
address
when they
send them direct to
the United Nations; they ought in¬
those

the

them

send

wrong

tions

United

The

full

knows

well

its

Nations

own

limita¬
other

weaknesses.

and

words, recourse should be had to
the doctor and not the

patient. We

enough in the last inter-rwar
period of governments who were
responsible for the destiny of
mankind hiding
in a cowardly

YORK' *>

NEW

(Singer Building) NEW YORK 6

(Bet. 77th & 78th Sts.) NEW YORK 21

1002 MADISON AVE.

CONDENSED STATEMENT,

DECEMBER 31,1946

the

•

the world of our every

We are

of Individuals

Task

The

kindly, gener-

seek no great conquests J
no ill-will.
But we
do not seem so perfect to others as
anything we
ourselves in our
to ourselves, and actions which
small zindividual worlds ; can
do
often appear wholly justifiable to
about all this?;' The answer
is
ple;

And

just a few final words
question: Is there

now

emphatically

There are in¬

yes.

The -Preamble

history.

United Nations Education,
tific

Cultural

and

effort

whole

UNESCO's

bases

born

the

minds

perfectly
the

men.

mankind

foremost,

must

radically change his whole
mental outlook if he really wants
peace

this planet. ~ He cannot
cheap or at little effort.

have

He must * make the

world's

prevention of
major interest and hot a
wholly
secondary
interest
for
spare moments.
He will have to tiers into
war

wholesale

house-

mental

I had started .to speak,
ayy •

f/y

kindly, really civilized people will
will even

speak,

earth

that

man's

has

seven

seem

seas

as we gen¬

•

;.f*n-i*..*•''-vvvr-g-'

It is only

;

; Self-righteousness

in the most recent few seconds, so
to

breakup

uinely feel ourselves to be.
The
most powerful member of a com■' *
j.i,
J.
1_ s
munity must recognize that his
slightest move is being watched
and may well ripple out into the
farthest confines of the world.

it, but it is true.

all the

innocent and harmless

of man's
But this

not like that statement,
resent

the

peace,

simple and innocent enough to us,
but it is sometimes hard for thff
rest of the world to; accept us as?

age-old desire for peace.
-f nl
nxrrwfincl
oyy'c
nrfn_
is
a false expression;
man's ageold desire has been for war. Good,
in

constituted ;
before v

blow

system and
preventing another
war.
Our Hawley-Smoot Tariff
was
within our powers to enact,
and
certainly was not enacted
vindictively,
butit • prostrated
world economy to the point of a
crisis which very quickly brought
us also into the morass. ; Our re¬
cent unprecedented demonstration
of power on battlefields all over
the world, our sole and awesome
possession of the atomic bomb,
and the pushing out of our fron¬

and

matter for

towards

the chance of

to have peace.

First

and

single

greatest
the

are
Let

few mental attitudes
which must be changed if we are
suggest

fair

Manchuria

;

in 1920 seemed to lis

ourselves alone, but it

Organization

the striking phrase that wars

cause disaster to others..
abstention from the League

of Nations

of the
Scien¬

may

Our

finite things that individuals can
do at this cross-roads of world

• • «

harbor

third

the

•

peaceful, well-disposed peo¬

ous,

-;c

akin

to'

this and comes close to being our
stay on this
Having
not .-glorified, greatest single weakness.
,

J, &ood conscience and good moI tives,_we assume the world will
football' take us at our owh. value and not

held it almost as good, clean
sport, "gone off to the wars" as it

war,

put, with the joy of a
ascribe bad motives to what seem
Tribal
chiefs,
princes,
to us to be legitimate actions. We
League of Na¬ kings and emperors have organ¬
tions which
wanted to act but ized war through the ages as the can understand, for instance, our
own tariff, but sometimes regard
could not act because of those final expression of their strength
others' tariffs as unfair discrimina¬
and
very same uftctious governments,
virility, whether for food,
tion. We can see no harm in, our
land, empire; or glory.
It is only
Lines of
yesterday, comparatively speak- +keeping troops in China, half wa^v
across
the world, but often look p
ing, that war became ignoble and
The 'lines of possible
develop-# outcast as ''an instrument of na¬ with suspicion on Russian troops
ment seem to me already outlined.
in neighboring lands nearby.
We
tional policy,". They provide a rich program fbr
have no hesitation in setting up a ;;
years of effort and progress.
The
million square miles strategic area
To Change Man's Warlike Nature
United
Nations
will inevitably
,
.
.,
.
...
i in the world's greatest ocean 5,000
strengthen still more all its cen¬
*i''miIes from our shores but react
tralizing and cooperative func¬ ficult task to change this basic strongiy against strategic bases or
tions, and in addition add new viewpoint, all the more because it {outlets for other powerful nations. ,:.
is
so,k little
understood;
Deep We are
powers
and
activities. We
can
quick to criticize or dis¬
fight to give it a central position encrustations of it lie in all our trust others but very sensitive
temperaments; even those who when they criticize or distrust us. '5
in the all-important field of arma¬
ments and atomic energy, increase least realize it.' War responds to It is the age-old story of selfits economic and financial work, our aggressive tendencies, to the deception, f We would be a better
add to its social and humanitarian instinct to hit out, to the instinct member of the community if we
to kill which even the mildest of
endeavors, help it raise world
spent more time; analyzing our
health and food standards, widen us possess deep down within us. own actions and their effects on
international law, settle or at least It will require a huge psychologi¬ world-life for which we are re¬
fashion

•149 BROADWAY

?■{

cleaning to rid himself of accept¬
ed theories which he has carried
over from his caveman days.

had

fiilton Trust company

effect
action.

warning:

of us, however,

Few

world-

conscious of our power or

are

But there is this word of

Progress will come, I think, not by Nations.
a

the

powerful nation in !'ry.}[^

being the most

greatest ' universal
effort,
his
greatest step in the political evo¬
lution of history,
-

unlimited challenge for tomorrow.

the roots and
again. It took a
colossal effort, even the consecra¬ stead to send them to the indi¬
tion of a world war, to get this vidual nations who have in their
far.
Let
us
not
jeopardize it. hands the future ' of1 the United
start

of; the

opinions

man¬

will

hold back or merely stand times.
•
*
pat, it means war as surely as that ;
The United Nations is, indeed,
night follows day. Personally, I
the next immediate step in man¬
have no doubt of the answer; I
kind's
faltering ; progress
from
think we have at least the rest
cave-life to ultimate civilization.
of the lifetimes of the youngest
It is not itself the ultimate, but it
of us to struggle along these lines.
represents the most and the best
We must not get panicky because
that we could get from the na¬
the millenium does not burst upon
tions asembled at San Francisco.
Us. at once in $ the after storms of
It offers much for today and an

Iran

sooner

tions

the United Nations, foreign troops
withdrawn

history of

strength;
more confidence, and more chance
to
contribute
to peace; if it is
backward, as God forbid, if na¬

can be little doubt
>ut that, because of the pressure
>f world opinion foeussed through

Minor far

as merely a
of
sovereign

that

direction

ward,

Indirect, there

been

indicates

one

either forward

single force, as anyone who had
good fortune to attend the
issembly discussions can attest.
reto or no veto, direct power or

iave

indefinitely

association

kind

the

md Asia

Strengthening of UN

direct

[powers mean that the United Na¬

by slow, steady accretion, by add¬
ing a bit here and a bit there, by
moving in a new piece every now
and then, or replacing an old piece
by a stronger one. Nations are
cautious, even unduly suspicious.
They want to test the ice care¬
fully before venturing out into
the pond. They will do a bit today
and a bit tomorrow as they gain

194t-

Thursday, January 9,

CHRONICLE

behind

was

game.

possible Development

RESOURCES
Cash in Vault,,....,.
Cash

286,811.35]

#......

Deposit in Federal Reserve

Bank of New York.....'..........

Cash

9,953,839.88

^40,320,398.44

369,961.31

Deposit in other Banks......

U. S. Government Securities....... .29,709,785.90

State and

attenuate the veto ;

382,868.30

Municipal Bonds.

Federal Reserve Bank of New York Stock

120,000.00
1,703,229.48
1,022,693.00

........

Other Securities
Loans Secured

Overdrafts—

by Collateral.
39,224.76

-Secured

9,430.00

205.24....

Unsecured

Real, Estate Bonds and Mortgages;
Real Estate (Branch Office),. . .....,;,..

218,383.80
75,000.00
142,840.51

.•
..

Accrued Interest and Other Resources

343,994,843.53

means

mensurate

■

.V......

$38,326,928.28
30,000.00
320,995.38

Dividend No. 169

Reserved for

Capital.

............».............

Surplus...

.$2,000,000.00

1 *'
1,316,919.87^ 5,316,919.87

2,000,000.00

Undivided Profits......,;...,.

■

and, by

tasks

com¬

has

perform for the good of human¬
ity.
Our aim now should be, I

think, to foresee all these possi¬
bilities, be prepared to jump the
moment
and

fronts

one

press

them

forward i

opens
as

up,

many

possible.

■And let

United

ever

remember that

Nations

operates on
levels, one negative
positive.
On the
one hand,
it is a police force to
suppress war if humanly possible,
and even, if unavoidable, to meet
force by greater force.
But its
and

Payable January 2nd, 1947.....
Taxes, Expenses and Contingencies..

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

the

budget

two different

liabilities

Depositors.

with

the

Due

least, secure

$43,994,843.53

the

other

cal effort to do away, or

at least

sponsible and less in analyzing
others' actions for which we are

harness, this primitive force and
much of it may have to be done in
the

But

subconscious.

there

not responsible.

are
'

Exaggerated national sovereign¬
ty is another seed of war.
Hovr
many crimes have been committed
Personal Irresponsibility is the
under this fair symbol of national |
most obvious.
Most people sim¬
sovereignty! Originally conceived
ply leave foreign affairs to the to
express the ideal of an agglom¬
government.
But it is just that
eration of people banded together
sort of indifference and irrespon¬
as a sovereign group, it has often
sibility
which
enormously
in¬
been prostituted to mean that a
creases the chances of war. If even
particular group is a law wholly
the majority of individuals around
unto itself, obligated to no higher
at least

Which

surface elements at
can work constantly::

some

the world felt

his

own

in V preserving

that each

had

one

and

the

peace

law, in fact above the law.

responsibility

ing

the

world, that peace would be pre¬
served.
First and foremost, we

humanity. Hitler used it as perfeet cover to allow him to hound
that
namely to remove the
millions of Jewish and other citiworld problems are our own most
war through such an improvement
zens
out of their own country*
They
of human conditions and standards vital and personal concern.
with utter disregard not only of
that war will become genuinely are not something far off in an- their
elementary human rights but
stratosphere;
they >;go 1
,
archaic as a method of redressing other
burdens and responsigrievances.:, As
human
society straight into our homes and decide a*so
bilities caused to the
countries
whether we stay there or go out
advances,
as
it goes into
the
which
gave
them succor. ,"My
calmer waters that will surely fol¬ to the furthermost confines of the
country, right or wrong," may
low the upheavals of the last war, earth.-; We must think straight, have a
glorious ring in war-time,
We
it is this side of the United Na¬ vote straight,, give straight.
other

function

far

higher,
causes of

must

each

^recognize

„

BOARD

EDMUND P.

ROGERS, Chairman of the Board

Bernon

John A. larkin

s. Prentice

Russell V. Cruikshank

o'donneil iselin

de coursey fales

E. townsend irvin
Franklin b. lord
russell

Stephen C.

e. burke

Member Federal Reserve System and Federal

SPECIALIZING

P E R S O N A L

development just as in municipal
life it is the departments of

charles s. mcveigh

Charles S. Brown

Henry w. bull

tions which will take the greatest

Charles J. Nourse

lic welfare,

Clark

Charles Scribner

walter N. stillman

Deposit Insurance Corporation

T R U STS

DIRECTORS

ARTHUR I MORRIS, President
stanley a. sweet

Noth¬

be more arrogant, or
contemptuous of the rest o£

could

BANKING

pub¬
education, health, and
highways, which far surpass those
of police and fire.
We have to
begin gradually; we have to start
with our police and vigilantes. We
must recognize that international
life is still in a very embyronic,
almost uncharted condition, but at
least

can

now:

see

the

goals

and the tracings leading to xnem.

could

well

afford

set

aside

but

how

hollow -it

sounds

civilized society and what an in- •
specified time each day to under¬
vitation to. chaos it would consti;
standing this world in which we
tute if adopted universally!
^
live and a specified percent of our
Mendicant mentality is perhaps
income each year to help doing
something about it.
He who tries the least appreciated danger. Our
to wash his hands of the whole American arms budget for next/:
affair
deserves
the foxhole
in year is set at ten billion dollar^
which he may well find himself..
our United Nations contribution at
.National irresponsibility is the ten million, v Reflect on that for .J

;

logical companion of the previous,
The United States stands today in'
the proud but awesome

moment;

much

for

one
war

thousand trmes
as

for jssace.

position of < wonder we do not gqt

farther with

;

;
,,

Volume

our

165- Number 4558

peace-making efforts.-' Too
: people
try to get peace

feften

cheap.
stance,

What

beauty,
rather

s-/.;

its

or
on

land

This is, I
fact that

its

adaptability, its

independence, but

whether
free

they

get

can

least

cheap.

fear, symptomatic of the
many

people

are

ap¬

proaching the United Nations cau¬
tiously, skeptically, halfheartedly.
They are not disposed to put much

'i\:

into

out

it—they will

not

get much
We spend money for
conceivable kind of insur¬

of it.

every
ance:

life, accident, J sickness, fire,
tornado, burglary, etc., but hardly

penny for the greatest insurance
And we blow up in a few

(Continued from page 132)

bank

the

board

it would be
easy to secure a ma¬

directors

jority vote in favor of liquidation.

which included
and

German, Japanese
It seems,
nevertheless,
bankers,
some ; of; the Allied Governments

Italian

whom

were

criminals.
of the

the

list

Moreover,

acquisition of German

con¬

board

the

Bretton

Bank

made

dec¬

Woods institutions begin to
oper¬
into their stride.

neutrality, and gave ate and come
undertaking to refrain from Meanwhile the
transaction which would fa¬
either belligerent party.. Nev¬

ertheless

the i Bank's

ports caused

annual

useful purpose by granting credits
such as the Finnish transaction

re¬

just

much Irritation

among the Allies and there was
ten whole
years!.; Let us be
a
great "deal of criticism of the
guard; the budget is often /the
B apk up v Britain and
first ipoint of
the ; TJnltedi
attack, not'for itself
States.
but for the
J!
'
objectives behind it.
Those who want to
Above
all,
the
surrender; to
cripple an
agency but dare not attack it head Germany of a gold deposit
belong¬
on, often
seek to starve
it for ing to the Czechoslovak National
jfurids'.. "Pretty .soon we
Bank was well: remembered and
imay isee
people going up and down the was frequently
quoted as evidence
for

„

'proclaiming that vast sums of the pro-Axis policy alleged to
being squandered Virr interna¬ huye been pursued
by the Bank

this

budget or the
value of its insurance. "Bewareof

before

there

the

war.

wonder

was a

strong and widespread
feeiing that the only thing, for the
Allies tq do, as, soon .as this be¬
comes

often either
small-minded, in their

view-point

treacherous in their

approach.'

■

ggj

•
great

least,

Last,

but

number

be in

coun-'

pending their admission the Bank
is the only official international
their

source

disposal.

The question is, has the

of >the

tion

liquida¬

Bank- been

;

merely
postponed, or are the Allied Gov¬
ernments considering the idea of
its .maintenance

some

form

additional international finan¬

cial^^

;

organization?;

considerations

have

^Sentimental
against the Bank

weakened

materially

amongst them,
tionalized.

have become

out

World

cfl-1 !

Age.

^aduhlly a^d
Innrt

& Loan Assns.
Americans

mately
nual

tions.

tions

the

Bank

are

year-end, it was announced
Dec, 29 fey Raymond P.
Harold,
President of the National

sible to make out
favor

the

for

strong

case

International

this sense, or

Harold

$212,000,000
said.

savings and loan
had

banner

still

have

that the $11 billions in home mort¬
gages
recorded, this year were
than

total in

year

World

the

Settle¬

pates
if

third higher than the
which was the. best
the
decade
following
a

1928

War

nothing

interferes

whether

said

he antici¬

better year in

an even

major

with

production

home building materials.

ex¬

arbitra-,

yidtpry; tidn; as a result of the Gzechoslo-=
Governmentswould .yaik National Bank's intention to
position: to. carry.but claim the; restoration of
\its gold

ffm&r

the Central Banks of the

CRACK NATIONAL BANK
OF NEW YORK

HANOVER SQUARE. NEW YORK

another - and,

an "■ infinitely
world holocaust

gruesome

Statement

of Condition, December

will depend
very largely on in¬
dividual citizens around the world.

they insist

if; they

then. work

out

EMICAL

Gash in Vault and with Bafifes
'•
i
Demand Loans to Brokers, Secured
a
U. Sv Government: Securities
:.
;.
State, Municipal and other Public Securities
Other Bonds
\
Loans and Discounts
.

BANK
'

and; the

wrong men rejected, if
they support the many agencies
working in this field, and demand

;

Founded 1824

that

165

that,

cies,

and

this

them' to

chance,:we have

even

greater likelihood of
sliding once
precipice of catas¬
trophe,
Our fate is in our own
hands. It is truly up to us.' ^ ;
more down the

At the clpse of business, December

U. S. Government

Obligations.

Other Bonds and Investments

Loans arid Discounts.

""Banking Houses

Acceptances-

the

ef¬

provided

automobile

"appraisal
is

the

guide
lower,

value,"
In

this

connection, the Board on Dec. 16,
1946, .designated certain appraisal
guide books for
poses

use

certain

for the

Regulation W.
of

will

the
not

pur¬
.«

designated ; guide
be

delivered

Capital Stock.

sult that the guide books

are

•

817,913.14

6,817,913.14

78,652,478.7$
7,094,849.54

1,721,157.75
989,282.26

•1,.

731,875.49

'871,208.73

$94,168,325.68

-45,:T94T,,and'' the

max-:

imumr credit value until that
time
fee based fen. the cash
pur¬
chase price

will

feniy.'l!6li;ll )

David M. Keiser

President, Oxford Paper Co.

Cuban-American Sugar
Company

F. G. Kingsley

Vice-President and Treasurer,

70,000,000.00
y.

Funk -6? Wagnalls

8,501,663.45
5,980,149.43 $109,481,812.88

-Company

Chairman of the Board,
Mercantile Stores Company, Inc.

Chester R. Dewey

•

Clark H. Minor

•

Acceptances Outstanding
(Less

;;

David Dows

1,125,000.00

Other Liabilities '

416,042.33
v';

Anaconda

;

:'5 Vi

President,

Securities carried
.

I £ $1,347,574,271.91
'•••.

ry'

deposited

;

statement are

;■/

A Griswold

•

;

Comnany; Joe..

| Assessed Valuation $4,056,690.00

;

ViccChairman,-'
W. R. Grace If Co,

President,

'-';y:

Pan American-Grace

Vice-President

Frank C.

Airways, Inc.

•

' \

■

„

Walker

President,-

Chairmao, Executive Committee,

Ingcrsoll-Rand Company

Comerford Theatres. Inc.

■

-j

James H. Sharp

Kirlin, Campbell, Hickox 6»* Keating

D. C. Keefe

Charter Member New York Clearing House Association
,

■

to secure

Member Federal Reserve System '

and

■

Cletus Keating

public funds
and for other purposes required by law.

;

Vice-President,

$49,99^,552-56 in the foregoing

Copper Mining Company
Harold J. Roig

U General Foods Corporation

John C. Griswold

Outstanding $54,439,048.50) 1,226,822,540.95

•

William M. Robbins

Executive Vice-President,

376,344.91

;

Chairman, Executive Committee,
International General Electric

Go., Inp.

Robert E, Dwyer

5,628,843.45

Deposits (including Official and Certified
ChecJcs

New York

$6,044,885.78

;■

•

4,139,729,72

acceptances

own

held in portfolio)

President

;

;;

Dividend Payable Jan. 2, 1947

v-..}

•'President,

Robert J. Cuddihy

Surplus-

not

required to be used for the purr
Regulation W until en and

poses of

3,000,000.00

,r/V

DIRECTORS

$25,000,000.00

Undivided Profits,

by.

Jan. 1, 1947. The Board
has there¬
fore postponed the
effective date
of the
designation, with the re¬

after J an.

•

Hugh, J. Chisholm

L1ABIOTIES

"Because of
printing difficulties

books

•Includes U. S. Government
Deposits aggregating $2,943,244.11,

$1,347,574,271.91

Reserves for Taxes, Expenses, etc,

©r

,$3,000,000.00

492,674.05

y:„'::7Tn

revised

would be
the cash purchase
price

whichever

253,830.98

3,045,9151)1

5,443,717.48

Unallocated Reserves-—

based

180,000.00

454,247.40

Reserve for Contipgenries, Interest,
Expenses, etc,

2,231,828.53
145,911.37

(Part 4 of the Supplement)
that,
after Jan. 1,
1947, the credit value
used

'■

Certified. and Cashier's Checks. Outstanding

Acceptances

239,793.50

"Other Real Estate.

;

Less Own Ac^eptauces in portfplio

,282,138,718.36

1,558,247.88
20,029.44

22,860,114.35

JDeposits*

52,000,557.41

Undivided Profits

Credits Granted

Dec. 26 by the
Board of Governors of the
Federal
Reserve System:/

Acceptances and Call Loans 75J095,69.8.65
State and Municipal Bonds;
.56,239,843.05

fectives1946^;

Capital Stock
Surplus
'

628,273,214.21

Bankers

Other Assets

\
.

•;c;

LIABILITIES

$242,226,400.29

$94,168,325.68

1946

31,.

;

The, following statement for the

"Regulation

Accrued Interest and: Accounts

Regulation W
issued

Customers' Liability for
Acceptances
Accrued Interest and Other Assets

ASSETS

Cash find Due from Banks

•

press was

BtQck-^Lfe^Bral 'Reseive',Bank

•

Broadway, New York

Mortgages-

Effective Date of

44,825,407.30

CONDENSED STATEMENT OF CONDITION

agen¬

band, the individual citizen passes
up these
problems and leaves

1,011,700.00

...

United

associated

may eventually arrive at
of law,
order, and peace
world.
.If, on the other

state

through the
its

„

TRUST COMPANY

their
government have i a
right and liberal policy in world
affairs,; we have a very good
Nations

$23,004,748.33

considered judgment, see that the
Tight men are elected to office,

chance

1946

31,

being informed,

.on

knowing, and On| having the

facts,

1947

character

before

through

year

financing, making over
third of the estimated
$11,000,-

also
asso¬

000,000 in urban home mortgages
in 1946 recorded by all
types of
mortgage lenders. Mr Harold said

the Bank has merely been granted

■

whether

the

home

ments. Whether the decision will

be taken

Mr.

sends

payments .for

the

over

ciations have

maintenance

dividend

stated that

It seems, therefore, that in the
changed situation it would be pos¬

Bank

mark,

to avoid clashes

so as

League. This

1946

pre¬

ance, it could perform a useful
task. It could operate in close col¬
laboration with the Bretton Woods

overlapping.

Loan

.total

reconstruction finance,
and, since
Europe is in bad need of assist¬

and

Savings

and

cluded. In any case, the Bank for
International Settlements has con¬
siderable experience in European

institutions,

approxi¬
semi-an¬

from

carry out opera¬
which the Fund and

International

dividends

savings,
building and loan associations at

would

from

received

$106,207,000

the

cai'ioo

Dividends of Savs.

na¬

ments decided against liquidation.
Moreover, the statutes of the
Bank are less rigid than those of
the two Bretton Woods
institu¬

formerly trol of the yGovernments, since id
peacefully through1 a long series 4
countries, are mow; free the meantime some of the principf ^evolutionary^ jstepsawhichvfi-^';of German
icqnlwL^
shareholders, the Bank ; of
nally
arrive
at
the
goal,
pr
npapflfllllu

respite, remains to

responsibilities, and opportunities this intention. After,
all, the share¬ deposit.1 Anyhow jt is now
in this struggle of
past
peace against holdings of
Germany; and Japan hi story. For all practical purposes
war.; We
stand truly today on the are now under Allied
control, and the Bank is now under the con¬
threshold
of
the
Wbether we.^nte* it

months

seen.

since

1944. The Czech gold affair is

result of the AJlijed

Allied

now

are not yet members of the
Bretton " Woods
institutions, and

or "skcourt of

rAs

tries

technically possible^ would pected to be thrashed
be. to wind up the Bank!
a iaw tcourt

the

($) Th^ M

concluded.

means

portance

Bank may serve a

ex¬

England and the Bank of France

is not at all

laration, of

seconds time in
a Bikini bomb

tional work, without ever;
a' sug¬
gestion of the comparative unim¬

favor

surprising. After all,
occupied countries, the Axis Pow¬ the main reason for the
liquidation
certainly*. he^M^ majority of bf thO Bdnk^that it had Axis con¬
the share capital and of the seats
nections, :; has ■ ceased" to exist.
on the board. It is
true, at the be¬ Moreover, it will take some little
ginning of the war the Executive time
before
the
two

vor

are

ers

any

land

that

few

are still
The Bank disposes other certain
the: Bretton Woods resources which would become
resolution, they are in no hurry available for the assistance of
for. putting it. into practice. This weak countries if the
Govern¬

war

result

trol oyer the Central Banks of the

of all.

periment .enough to pay our con¬
tribution to the United Nations

THE COMMERCIAL & FINANCIAL
CHRONICLE

The Bank for International Settlements Revived

sight, for in¬

when the

capital not

the

sad

world's states¬
base their search for
a world

men

•

Member Federal tleposit Insurance Corporation

|he Grace
i;

MEMBER

;

name

has been identified with domestic and international

banking and
FEDERAL

commerce

DEPOSIT

for almost

century.

-INSURANCE

CORPORATION

156

ly to be desired, and I would like
to discuss
briefly some of the con¬
siderations we face when we start

thinking about

what

toward

stabilized employ¬

ment.

....

"The

have

fault

anteed

tomobile

they

most

plans

so-called

Annual

be done

can

;v:"

with

lor

seen

•

'Guar¬

Wage' in the

business

guarantee

au¬

simply that
increase

Unless such
plan would clearly insure a sub¬

stantial
or

increase

economies to

productivity
offset

the

in¬

in costs, it is obvious that
the result would be
simply to in¬
crease the cost of automobiles.
To
crease

that extent, the standard of living
of

all

Americans

duced

—7

would

seem

;•

„
_

Ira

Mosher's

Mosher

thetic.

re¬

those
who
benefit from such

plan."

Mr.

would

including

was

':r,-/

■?,

Position
more

sympa¬

Speaking before

the

Na¬

tional

Association
of
Manufac¬
turers in New York City on Dec.
5

(see

3202), he said:
"In

the

;

opinion,

for

reason

"Chronicle," Dec. 19,

tne

the

relation¬

and

manage¬

today is the worker's unsat¬

isfied

craving for security.
We
know through opinion
polls that
he wants security above
every¬
thing else./He not only wants a
job, but he wants to to be a steady
job. And, we know that he regards
this

kind

highly than
that

the

"This

security far more
synthetic security

any

Government

offer

can

wholly understandable de¬

sire of the American
working man
is reflected in the
growing de¬

I ' "A'•-tAAjv'

Av/

the

"X am warned that the use of

The

has been placed on

now.

and

the

of workers.

minds

the

will

worker's

admit it

hardly the

and

term,

known

bad

answer

nored the

craving for

guaranteed annual wage

other

nor

Any plan of this nature has been,
still

and

is, in Great Britain re¬
as
purely academic and
wholly, unsuited to actual or po¬
litical conditions. Indeed, Sir Wil¬
liam Beverage wrote in his first
book on "Unemployment" back in
garded

1908:

this

for

work

weeks'

"If the solution of, the problem

Economic

work-week

standard

whether it's 40, 45 or 48

Undivided Profits

planning
of
stabilized
employment so that steady pay
and the worker's goal of security

will be the natural consequences."
;un-

once

us,

the plan was

surance," the very idea overlooks

have been able to
operate even through the depres¬
sion on a fairly even basis; so that
not only those who were entitled
to operate under the steady em¬
ployment plan, but most of the
others have had steady work. The

established,

what the individual employer can

competitive economy. The
employer, indeed, has
little control over the problem.
He must face conditions, untramdo in

by a theory which handi-:
him in competition. V More¬
over, a scheme of stabilization may
mean ! nothing
more than a
re¬
striction of output and a further
were so blue and uncertain that in
line with our right to withdraw or boost to monopolistic industries in
modify the plan the- board of di¬ strangling independent compet¬
meled
caps

strain came during the
depression in the early 30s. Dur¬
ing this period general conditions

rectors in 1932 felt that we

should itors.

the

advantages

over

for employment stabilization, but
also to installations of some sort
of

7,500,000.00

the

Cash

Hand—,

Banks„______

£3 k

follows:
itations

Government

■

Bonds
N.

30,278,997.24

State

Bonds

Oiher

and

City

dustry, for in concluding
dress he stated:

trade

his ad¬

Bonds

5,996,225.37

825,030.70
1,267,368.63

Fonds and
on

.Demand

Mortgages.
Collateral,
and

Bills

Time.

621,758.00

Purchased

Re^l

E'tate—

Other

235,580.37

Undivided

645,000.00

Checks

333,395.64

$58,770,999.00

500,000.00

Profits..—,

480,317.99

Unearned

'•

11,265.67

Discount—./

Reserves

for

1,072.77;

Taxes,

least

Expenses and Con-

tingenfcles
Official

Checks.

180,618.60

$58,770,999.00 *

The

Kings County Trust Company offers to its depositors every facility and
to modern.'banking.
If you are not already availing
yourself of the advantages offered by this institution, the Kings County
Trust Company win be
glad to have you open an Recount.,
'
accommodation known

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION;

organized

groups have
pro¬
increasing rigidity, and it
has therefore become increasingly

other

•

months

and

who

have

difficult to secure proper price re¬

lationships."
.r,

plan, which has been in ef¬

fect since 1923, is very simple in

The

•

'erf

concepts-end;

;

Study

?• ;"7 #,.v. K;-V

/-f

and employment guarantee
reveals only one-half have
succeeded and that companies that
have been successful with plans
have
been those which have a
wage

plans

employing

steady flow of output and a con¬

large number of workers, though
undoubtedly desirous of retaining

sequent long history of harmoni¬
employee relationships. Some
companies, the study also states,
are in a more favorable position

vast bulk of industries,

ous

permanent personnel staff and

avoiding heavy losses arising from

than others to assume the respon¬

the\

throughout

This stabilization idea,

received

but

sibility for a guarantee of wages
or employment.
An obvious pre¬
requisite for success of any plan
it is pointed out, is that the con¬
cern. itself be in a prosperous con¬
dition

other

year.

through

knows

.■i hi *>i-!«Lai

:"i

KlvlV;-

years

its market.

op¬

An¬

yital factor is the relations

ship of labor costs to total cost of

production! If labor costs

which has

scant' attention

and

eration,

sent; a small
Lvl.-r

repre-

percentage,-.the risk&

administration; Great Hfitain—the home of social
>

study by the National
Industrial Conference Board of 61

■

its

"V;! ;

•.*'»*--V'

Industrial Conference Board

A recent

rapid labor turnover, have either
never
taken up; the question of
installing a guaranteed wage for all
classes of employees, or have re¬
garded some form of unemploy¬
ment and severence wage benefit
plan as more desirable or more

or are

control

duced

factories

"Out

(

found.' The policies and devices

buying stock in the
market value equal
wages.
It entitles
such workers to guaranteed full
pay for 48 weeks in each calendar
year.- Regarding the working-out
of the scheme, the following state¬
ment was made by Mr. Richard practicable, or, what is more like¬
R. Deupree, President of the com¬ ly, they have taken measures to
pany, on Oct. 11; 1945 (see "Chron¬ bring about a stabilization in the
volume of employment in their
icle," Nov. 8, 1945):.;.
' *]'■:. vr<

Out-'/A. A

standing

company of a
to one year's

KINGS COUNTY TRUST COMPANY

six

bought

785,527.48

;

; y

early as Aug. 1, 1923. As insti¬
tuted, it applied to workers with
wages under $2,000 per year, who
were
employed steadily for at

49,312,196.49

Certified..—'.

is f largely to
be
of
labor; industrial com¬
binations, trade associations and

theproblem

Govern¬

attempts to guarantee steady

7,500,000.00

'•

Assets

ment

of control by private groups

much that neither

"I hope very

the State nor the Federal

had. been
it is in the exercise
that

recovery

once

made. Indeed,

or
as
well-known as Procter &
'
Perhaps the most outstanding Gamble. They are, for the most
example and the one most widely part, local- businesses having an
heralded
is
that of Procter
& assured minimum output, and, in
Gamble.
This well-known soap some cases, severely limit the ap¬
manufacturing concern adopted a plication to selected employees
long service periods.
The
limited wage guaran'ee plan as with

LIABILITIES

Due Depositors

5,092,114.87

Stocks

Loans

business, December 31, ■1946

Capital

forth by
Montgbmery as
"There are distinct lim¬
upon what monopolistic
and

of the company for

now"
20 years now.

wise restricted.

Surplus

--v.-,u1:v.' 4b''«♦.* ••■•;v" si

«•.--r.•

•

Millis

Prof.

jobs. I think such a program is
doomed to failure before it starts,
operation of these plans are ex¬
and will do nothing but make for
tremely small, and are limited
trouble."
■
'V-: •/••''' ,
largely to a few concerns, well
Other concerns, among which is
fortified financially and having a
steady demand for their products. the Dennison Manufacturing Com¬
And even in these, the plan is ap¬ pany, who have adopted similar
plied only to a part of the total plans to insure steady employ¬
number of employees, or other¬ ment to workers are not so large

LEONARD D. O'BRIEN, Asst. Sec'y
WILLIAM TUNIS, Comptroller

1,344,330.11

period-of work to
But, in view of the
indus¬

tries, as well as changing cycles
of business, the cases of successful

RICHARD C. CUMBERS, Asst. Sec'y

12,131,198.01

over ^ years optimism
Despite his now'

guaranteed

employees.

seasonal character of many

480,000.00

This view is clearly set

precaution to limit the
guarantee to 75% of the estab¬
lished work week.
However,' at
the end of the year all employees
take

;
^
price relations get out of balance, i
regarding Getting them back into balance is
his company's "quaranteed wage" a condition of recovery: and keep¬
ognized and has led in a few no¬ system, Mr. Deupree does not rec¬ ing them in balance is a condition v
table instances not only to plans
ommend its enforcement upon in¬ of maintaining a sound state- of
well

STATEMENT

RESOURCES

individual

greatest

.the
as(th* ^
pro/edure
em-l

ployers in having a/permanent
working personnel, has been rec¬

Sec'y

fit the close of-

toward

concerns

1But without
the,gruesome
within three
the sales department

OFFICERS

ALBERT I. TABOR,
Secretary
WILLIAM N. BOYLE, Asst.

individual

and

flattening out production and dis¬
tributing employment throughout
ployees. With the two years' serv- the year, there are, indeed, seri¬
ous
handicaps and. evils .which
^ce requirement and the very natmay arise from v a broad scheme
ural coming and going of work
industrial econ¬
men, we know about 70% of our throughout our
force will be steady, so that im¬ omy to enforce a universal em¬
mediately our responsibility for ployment stabilization scheme. As
steady jobs is limited to approxi¬ stated by Prof. Harry A. Millis
mately 70% of our force. Fortu¬ and Royal E. Montgomery in their
book "Labor Risks and Social In¬
nately for

that

nil states,
LSf 1GS1fe

WILLIAM J. WASON, Jr., President
CHESTER A. ALLEN,
Vice-Pres.
CARL J. MEHLDAU, Vice-Pres.

Handicaps

Yet, although much has been
accomplished by some industries

hours.

^e"
When
started it, and
Particularly
this sub-

500,000.00

for a wider application
guaranteed annual wage.

of the

that every in the plan had worked the full 48 industries and organized groups
man should have the certainty of
can
be expected
to accomplish
weeks,:.;/r.
■
continuous work throughout life,
"When I say the plan is simple, toward stabilization, for what they
then no solution is to be expected,
I don't say it was simple to put naturally do may be precisely the
or, indeed desired.
If, however, into effect, because we had a great wrong thing from the point of
by a solution is meant tnat no man
that nomanr;—. - - , ■■■■• .,
...
.
,
view
of ■ general
stabilization.
able to work and willing to work a]
+r?Uu
W1* ,ouf s, /rs
Groups in position to exercise
should
come
to degradation
or-Partment
we
control
are
prone
to maintain
destitution for want of work, then | ?
on
prices of their;-products and to
a
solution is not indeed within I?ct
cause, was General Sales restrict output. This not only af¬
sight but by no means beyond I Manage* at
time.
fects the consuming public, pur-,
hope. The demand for labor can-■ ?°?n%
chasers of fuels or raw materials,
not be stereotyped, except in a ?etfUs-1 wl11 sa* th?4
and buyers of capital goods, but:
stagnant industry." '
to fo"r years
all too frequently causes a greater
t
e.
.
was thoroughly satisfied in having
maladjustment
between
prices
nthor
htw
on
itg g00(js regularly produced and than would otherwise obtain. In
umrVor. for
.
regularly shipped. That has been the swing of the business cycle,
worker f
steady employment

realistic

...

Manufacturers'

way open

The guarantee applies

year.

the

Surplus

of the

of unemployment means

wage, but from the practical and

..$

industrial leaders gave serious

posed any action along these lines.

upon

were

guaranteed annual wage was

study to the matter and none pro¬

problem, not from the impractical
basis
of
a
guaranteed
annual

•

manifest, that neither the Brit¬
Government, the trade unions

ish

"Your Association recognizes this
basic truth and is tackling the

statements

which to build his security.

These

Jin

words, the impracticability

the
an im¬
to the

management

annual

community' economic action.

possibility is no answer
problem. The worker needs some¬
thing more than the unrevealed
nobleness

QnnilOl

fixed

try—one that strives to meet the
exigencies of fluctuating seasonal
and
cyclical market conditions,
something which cannot be settled
by legislation or by application of

off

llvnrl

They seem to regard this
internal question of indus¬

wage.

security cannot be guaranteed—at
least for very long. All you have
to
do is to
count the Utopian
schemes that have tried it, and
flopped. The idea that the Gov¬
ernment can guarantee security is
just as fallacious, because any
such Government program is no
better than the productive capac¬
ity of the economic system which
supports it, ^and that economic
system is business—your business
and my business, all business.
"But merely shrugging

assured

given

possibility of solving the

stabilization

that

know

because we

eligible

the studies

em¬

imernployment evil through work

nfnh.l.nntiAn

security,

meration of the

permit the enu¬
plans and the ef¬

Association, stressed the need of
more action along these lines as a

unemployment
continuous

does not

Space

"I think you can reason very
ployment under a guaranteed wage
to
the
employee.
The
British quickly from this statement that
studies, including those
of Sir our guarantee applies only to ap¬
William Beverage, generally ig- proximately
70% -- of
our
emB7'v:r*
.F'VAnnaicv
/0

has been promoted extensively by
the unions and the government.
All

organizations.

research

private

acquainted with the man and the
man with the company, but if he
is with us for that period he then

generations, more emphasis

insurance than

air

"The annual wage is in the

job
em¬

riod wherein the company can get

where problems concern¬
the
economic
security
of
workers
have been studied for
many

has beeh
the

forts thus far made to effect a
plan stabilization in employment of
after he has worked for the com¬ workers by various industrial con¬
pany for two years; in other words, cerns, but it should be noted that
there is a two-year probation pe¬ Mr. Mosher, in calling attention to

States,

•

—

Association of Manufacturers as well as in official and

National

pay

ployee' is

ing

from

1947

this country by

under study in

calendar

is controlled by the
rate which covers the specific job
that he is working on. • An em¬

Stabilization

the

we can

ployee's

In Great Britain and the United

BROOKLYN 1,'N. Y.

Study

willing' to take any
give to him. The

which

in¬

security movements

guarantee a worker

work

provided he wants to work

year

been

people to turn purple with apo¬
plexy, but all of you are going to
hear more and more about it in
the coming months, so you might
as well hear a few things about it

weeks'

regarded as extrava¬
gant, if not preposterous less than
a decade ago.
;
'

342, 344 and 346 FULTON STREET

and

have

Company

Capital

■

the guarantee of security
of permanent employment for the
workers—a
claim
which
would

vT»'

dustry

Kings County Trust

;

•

In effect, we

guaranteed annual wage in an
NAM meeting hall causes a few

principal

strained

ship between labor
ment

bor leaders that the ultimate aim

guaranteed annual

the

for

wage.

manufacturing costs.
a

mand

of the unions is to force upon

(Continued from page 122)
able employment is
great¬

t * *

■

doubtedly made in answer to an¬
made
by
Walter
Reuther and other prominent la¬

Guaranteed! Annual Wage
s

nouncements

Employment Stabilization and the
more

Thursday, January 9,

FINANCIAL CHRONICLE

THE COMMERCIAL &

,a •"u-*

Volume 165

Number 4558

THE COMMERCIAL & FINANCIAL CHRONICLE

ately less than if labor constitutes
large share of the cost.' This

such

makes

plans

unsuitable

most basic industries such

steel,
autos,

ers

well, is the best

continuation of

industries, in
monopolistic
position, are permitted to "hoard"
or "monopolized"
efficient labor,
to

maintain

competition

costs.;"f C;3

comes

Steady earnings for the workerthroughout the year is undoubt¬
edly a highly desirable objective,
but it will not be socially or eco¬
nomically beneficial unless it pro¬

motes

rather

than restrains

com¬

eral

from

public

the

the cost of such

will

end

hoarding

the

is not yet wholly

war

not, as we had hoped,
the first year of peace. < We can
now only hope that it was the last
year of war. The destruction and
disruptions, the staggering debts
and

encumbrances

left

have

war

leaden load upon our oppor¬
tunities and upon our progress.
a

still have to

achieve

conditions in
markets

small

business

and

the

Within
us

the

lifetime

revolution

mankind's

has

occurred

relationship

world in which
selves have

seen

our¬

the development
a

novelty

its present status of both lux¬

and

ury

necessity.

lives have

come

Within

recall

how

When

deeply those two

inventions have
course

our

the invention of

the airplane and of radio.

tle

the

live.

of the automobile from
to

most

bring about the rule of

nopoly,

and, perhaps,

ership

Russia.

industry

state

from

developments

the

will

newest

discovery,
$
Man has sprung in a few short
years from the relative simplicity
of thg; horse and buggy .days to
thq terrifying realization that he
is standing in darkness on a nar¬
row
ledge, holding in his hands
secret

false

it!.

own¬

step

new

cars,

multitude of goods of
all kinds, with vast accumulated
a

savings available to finance both
production and consumption, with
the greatest productive plant and
the most

the

breath
will

whether

see

its internal

stop

America

quarrelling

and get to work or will lead the

back

retreat

world-wide

nomic stagnation.

eco¬

have, indeed, mighty prob¬
They
are
not " economic
problems in the ordinary sense.

lems.

the

and

universe.

One

lose not

may

challenge of

day is the

our

get along with each other.
At

this

moment

the

se.ek to bring about a. better un¬
derstanding and good will among
ali people and all nations/, Thiols
not

task

calls for

platitudes

arid

solved

vigorous, courageous and

farseeing

measures

and

frustrate

men

but

know himself.

does

are

like chil¬

not

understanding.

ample,

by pious
It

exhortations.

anxieties

universe,

supreme

which
their

cloud

arid

the

cure

hardships

We must, for ex¬
for an answer to

the conflict between freedom and

dren who have come into the pos¬
session of knowledge without yet

having acquired understanding.

ciety.

Our generation has seen the in¬
ventive genius and imagination of
men
soar
like
angels but that
same generation has also seen two
devastating
wars,
equalling :*•'in
ferocity the darkest chapters of

the ancient past.

Yet, in the face

of these grim lessons we have seen,
the leading statesmen of the na¬
tions

laboring under the greatest

of difficulties even to establish the

security which is the great dilem¬
of

our

modern

industrial

so¬

How can we achieve secu¬
rity without giving up our essen¬
tial freedoms?
of

our

time.

That is the riddle

It repeats itself per¬

sistently throughout the pattern of
existence.

In,the grand theatre of interna¬
tional
how

■

relations

can

against

each

attack

the

question

nation, be

secure

atomic

age

without surrending a vital part of
its sovereignty.t;
•/
-i
*

of the problem is

core

depression, followed by five
of

have

war

sense

years

accentuated

helplessness

dividual.

that

thein¬

;

ment

not to

our

society should exist
solely to serve

control but

the individual citizen.

The indus¬

trial/ machine

has

the

ours

powerful
him.

serve

should

which

most

exists to
man

slave

earth

The idea that

come

the

machine

end.

For

Perhaps

the
most ; important
need .today is
to restore man's
faith in his fellow

The first

man.

step is to restore the individual's
faith in himself.

speech and

free press/Too often

rights

service

received/ only
lip
those
who
were

from

powerful enough to ignore them,
but little by little
they have been

implemented
and
extended
through
progressive/, legislation

enlightened public'custom.

Our

freedom/ is
us

grows

riot

created

once

down to

principles

have

tions

shall

ple

sound
the

well-being of

chance

destroy

the

section for
Business

the

has

profit.

freedom
benefit

to
we

right to

Labor

has

society

our

It will be

zens,

devor

that

see

The

bitter

lesson

the

human

ours

attempt

can

bring

most /

the

and

It is

stable
our

country

our

truly free society
be

the

society so
such
in the final analysis
failure, hunger and

only
despair.
Here -in

that
and

both
it

cause

head,
be

can

world.

by continu¬

and

both

solvent; that it

people

without

master,

happy

the

ing to show, that government
have

this, the worst

decide at
are

'/%

work stop¬

year of

than

45,000

between

employers

and

unions

had

peacefully

con¬

been

summated without
Once

work.

the

gins

know

function,

that

suggest

interruption of

can

177

can

ways

useful

power

sion.

the

This

? as

our

The

use

will meet
w

liberty.
When we chip
at the rights of a minority,
chip away at the rights of all
seek to reach

limiting

the

freedom

59,770,278.72'

/147,846,449.26

Municipal Bonds,

Loans and Bills Purchased

Bonds and

group we undermine the free¬

Bank

And it makes
difference whether that group

Mortgages
Buildings
.

Other Real Estate

racial, agricultural

Other Resources

5,450,645.68

Other Securities

dom of every group.

be religious or

of Condition, December 31,1946

Hand and due from Federal

State and

away

Broad Street

Reserve Bank arid Other Banks

tutional

YpRK QEHCE:

RESOURCES

2,679,570.01,

£ 33,633.509.15

825,278.91

■,

2,500 000.00

':
«

•

■V

1,000.00

703,471.35

$253,410,203.08

LIABILITIES

see

ideological
cannot

the spectacle of great

torn with political and

confusion

even

that

they

establish stable gov¬

ernments, much less achieve free¬
dom
peace

the

stable economy and
greatly needed after the

all-powerful pa¬
ternalistic state.
They have dis¬
covered too late that security can¬
not be bought at the sacrifice of
freedom. The security of the slave
is a cruel illusion. For his master,
the state, can

Here

our, own country — so
fortunate than others

have had present all of the
essentials, for 0great- economic

—we

progress, yet we have
our
affairs that there

always destroy him.

all

the world.

Says We Have Temporized

our

own

country we have
temporized with the dilemma; we
have yet to solve it. Our approach
to a solution has too often been

impeded

those

extreme

bungled

views who insist

actually

alternatives in terms of black and

painting the

Yet

however

great

victory.

used, withers and dies by impercepitable degrees. Freedom must
be won and rewon.
e,very day. The
battle to established it, to extend

to keep it is a part

everyday lives.
•*

Out

war

and

the

its

aftermath

♦

5,600,000.00

•

V/1,637,401.44

Deposits

•

...v.•>.

Reserves for Taxesj

1,220,497.73

If1/ 205,000.00
'

235,134367.49

•

Expenses, etc. •"'

1,412.936.42

United States Government and State and Municipal bonds

;

carried

,/••

$22,517,105.13

deposits and for other

One

are

pledged

purposes,

secure

pubiic

■

required by law.

of the Oldest Trust Companies in the United States'
'

our

;

experiences

8,200,000.00

Contingencies

MEMBER NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL RESERVE

Dividend payable Jan. 2,1947

freedom, if it is not constantly

it and

never

can

the

Reserve for

We have fought two great wars
to save freedom for ourselves and

rest,

Undivided Profits

Only in that way can we achieve
security and the preservation of
free government.
/'/-/■•///

For
;

much

Surplus

individual.

the hands of

war-torn years.
We Have Essentials of Progress

Capital

the

have

SYSTEM AND FEDERAL DEPOSIT

bar¬

to main¬

„

nations

the

vV/ New York 4, N. Y.

U. S. Government Securities

increasing disregard for consti¬

When

the

power

With

Asia

persua¬

COMPANY.

NEW

only

your

are

• ■ •

assembly

February.

Montague Street

fpff
Cash

policy of free collective

bargaining."

their

Condensed Statement

which

only

can

gaining table if
tain

.///■

able

mediating

power

the

Government

the

serve

becoming

do, remember that

you

Brooklyn 2, N. Y.

our peo¬

be¬

asserted,

agent." He added: "But, whatever

heart;

progressive

he
will

you

other

can

M,AIN, OFFICE:

stroke

one

to remain free

agree¬

organization

'?//?/;////: ?/////>/

have

War¬

BROOKLYN TRUST

or
on an enduring peace/
business,/factory workers or
Among individuals the question doctors./ When, to cure one evil,
virtually- all
men
and is h<rw
can
men
and women be we
establish
another, we
are
women
everywhere agreed upon
protected from the economic haz¬ bringing ourselves ever closer to
the great objective, it has seemed
ards of. unemployment and sick¬ the abyss.
1
at times as though we could barely
ness without
surrendering to the / It is our duty and it must be
agree upon the order in which we
state control
over
too
much of our high
purpose, to make sure
should parade our disagreements.
their lives.: The people of some that in
every act we perform, we
There is frustration among men nations
grew tired of the dilemma are building
wisely and well, for
almost everywhere. In Europe and and delivered their
destinies into the
freedom of
the

beginning

The Philadelphia

advices said that Mr.

never

the

told the meeting that even in

ren

solemn duty under God

to advance that

Dec. 23.

continue to

can

nroductive,

society

dispatch

where

that every

and

Press

held its organization meet¬

recent

relations

business relations of

two

attorneys, according

ments

is/ that /no one is wise
enough to try to control and di¬

vast

ing

labor

and

pages,

years

rect

new

labor

Philadelphia,

press

between the rights of all.

ance

two

Associated

group

en-

the

loss

The

handed

and

stable government where

from

citi¬

constant

our

the

strikes."

industrialists,
and

management

the

or
our

rights of
none are imperiled
by the power
of any and to maintain a fair bal¬

ple are/ protected by a constitu¬
tion, or we are building an in¬
creasingly regimented society with

is entitled to exercise those rights
at; the expense of the economic

stability

without

through

standing

right to
But neither

;

unions

leaders

the

bargain collectively.

Warren, Director of

assembly is composed of 10 out¬

others.

make as we go
along.
By each
act and decision, we are building
either for a free society under" a

one

and

time

one

pursue

Edgar L.

tle differences between
employers

our peo¬

the expense of another, or to limit
or

choice is being made now/ day by
day, week by week, month by
month, in the little decisions we

end

ad¬

whole.

labor rela¬

a new

the Service, will endeavor "to set¬

We shall oppose
every effort to advance the inter¬
est of one section of the
as

surrender to totalitarianism. That

us.

was

which, in the words

group

family heirloom.
withers day by day

Accept Totalitarianism

;

favor

which

measure

continue

improving

relations

We in America will

States

principles

and to advance them.

Dec. 24 by the United
Conciliation Service with
on

the setting up of

those

whether

experiment

initiated

/static

Decision to Remain Free

labor-management

;

stood these past four years and I
take the election to be a
mandate

depending, on how we nurture it.
Writing a law or enunciating a
principle is only
^ beginning.

Group Starts

is essentia,

one
'

A ' z

Long ago we established in this
country certain rights of man, re¬
ligious and political freedom/free

The

these

man.

these

that

to? continue

made

truth the' machine is the slave of

fundamental freedom of

Government, business, organ¬
ized labor—every organized ele¬

task before all governments is to

only the secret, but the world it¬
Man has learned how to
deal with nearly all nature except
human nature.
He has explored

peren¬

nial problem of mankind—how to

rights of

a
widespread feeling among many
people today that they are small
and helpless in the face of allpowerful forces.
Ten years of

thing,

problems.
They
problems.
The great

the

truth

people at

The hard

simple

material

for

others.

and

human

respect

New Labor Peace

lasting security with¬

the other.
On

way

progress along that
must all learn to have

They are not political problems in
ordinary sense. They are not

self,

the

million

140

vances

on every

and

can

The

cannot have

make real

greater

depression.

With

people eager for
homes and

are

the secret of atomic energy.

the

possible

Think

of the world, we have lit¬
to doubt that even more

extraordinary
flow

security.

every

the

cause

They do not

better understanding of/

out freedom.

want that?

find

mo¬

exists

widespread apprehension
hand

to affect the

come

their freedom.

road

the whole world waits with baited

a healthy, produc¬
tive, harmonious society at home.
These are the primary tasks of
1947 and of the years that follow.

security.

come

the essential truth that there is nc
real choice, between freedom and

to have both
freedom and security.
If we are

end

the world and

irresponsible
I deny

other.

serve

its

highly skilled workers in
world
with every require¬
ment for a better, richer, happier
life,
we
have
been
stumbling
along, encumbered by industrial
conflict, governmental ineptitude
and
general foolishness./ Today

and

the

must

industry and the
products, if uni¬
sound the death toll

for

peace

hand

der to have

or mo¬

(Continued from page ,127)
The year that now lies be¬

between black reaction

one

validity of that bleak choice.
Our people do not. need to give
up their essential freedoms in or¬

nor

us was

must

the

pay

Capital Should
Endanger Stability: Dewey

But

country

guaranteed,} annual need to abandon the effort to
wage, unless; justified by stable achieve security in order to pre¬

will

won.

the

nopoly

tion requirements and encourages
new
individual enterprise.
Po¬

hind

that

radicalism

gen¬

versal, will

Neither Laboi

the

be¬

effective, and the

less

chose

outsiders

petition and unless it permits an
adjustment of prices to consump¬

tential competition of new and
independent concerns, not only in
attracting customers, but work¬

insisted

large

economy.

order

manufacturing,
mining,
printing, etc., in which wage pay¬
ments constitute bulk of operating
•;,..

white.
We have had extremists of
the right and of the left who have

assurance

competitive

INSURANCE

CORPORATION

;

...

again

FINANCIAL CHRONICLE

THE COMMERCIAL &

158

borrowed by the State. The bal¬
ance
item
"rediscounted
bills"

The Urgent Crisis of French Franc
power,

the

30-40%

been

during the
There has always

important "black market"

"hard

.for-

since

lost

value

last 12 months.

probably

Franc
its

currencies"

France

the

While

liberation.

the

official exchange rate of the dol¬
lar* remained
at
Frs.
119.10669

of last

to the dollar since the end

This

tivities.

(Continued from page 122)

the "black market" offered
; francs
200 for the dollar already
in January, 1946, Frs. 250 in June,
and Frs. 350 in December, 1946.
year;

regression

sudden

peoples.

mainly to"a drop in coal
which,
in
November,
1946, had fallen 30% below , the
September level. But the finan¬
cial and monetary instability con¬
due

was

likewise

tributed

tarnish

understatement, as indirect taxa¬
more developed in France
than in the Anglo-Saxon coun¬
tries.
The new French tax. pro¬

the

confirmation

the

last

posals

can¬

long as the financial
monetary situation remains

and

unbalanced.

"Sport" to End

Evasion

Tax

The

•

Purchasing

Falling

;

'Trying for Budget Balance

Power

The development of the

Today, the

French

Blum Govern¬

new

almost

against inflation" and to
stabilize wages and prices have
failed dismally. Taking the price
index of the year 1938 as
100,
wholesale prices in France were
523
in April, 1946, went up to
637
in
September to reach 802

early in December, 194-3. Retail
prices have shown similar, if riot
greater advances. This spectacular
rise
in prices and living
costs,

only

tells

-moreover,

half

the

story! The official indices reflect
-prices on the official markets
only. Actually the French con¬
sumer
buys
at
least
one-third
of his more or less meager diet,
of his clothing and other commod¬
ities

flourishing

the

"black

market." Black market prices, ac¬

cording to Professor Charles Rist,
economist,
have
run
up
to
more
than
1600% of the 1938 price level!
the well-known French

France—to

certain

extent—

unanimously adopted the
which were elo¬
quently defended by Mr. Andre
Philip, the new Minister of Fi¬
reform proposals

and

nance

former Professor of

Social Sciences.

to these proposals,
government expenditure will be
reduced, mainly by abandoning
most of the- subsidies for keeping

According

prices of basic commod¬
a result,
only subsidies
for steel, for imported products,
for bread and for milk will be
As

maintained.

Instead

Frs.

97,-

been a kind of national
sport in France.
Tax* frauds in
1946 are estimated running up to
always

150,000,000,000. Only 400,000
independent farm¬
ers
pay
any
income tax at all.
Of the income from agriculture,
estimated at Frs.
400,000,000,000
Frs.

of the 2,000,000

only Frs. 2,000,000,000 or

year,

1% is paid to the tax collector!

Philip's reforms

Mr.

financial situation and to end the

increasing budget deficits.

era

the government will
budget" will be balanced appears
Frs. 28,000,000,000 for
to be an expression of wishful
v
As
a
first step
Moreover, there is a
toward reducing the number of thinking.
"extraordinary
budget"
state
officials, which increased large
which is completely uncovered by
from 700,000 in 1938 to 1,100,000.

000,000,000

only

pay

this

purpose,

in 1946,

50,000 government clerks

employees will be dismissed
immediately.
*
and

government intends to in¬
state
revenues
substan¬

The
crease

regular receipts.: Based on, the
budget7estimates for the
first
three months of 1947, as adopted
by the French Assembly, the bud¬
get for the year 1947 does not

favorably with those of

comprae

the years

Expenditure:

"Institut
507©
the 1938 level during the year

1945.

It had climbed up to 80, and in

some

was

Agriculture

Considerably
sions of
tion.
the

has

too

recovered

from the repercus¬
and German occupa¬

war

This year's crops have been
best
since
the
liberation.
food

French

production

1945.

According 7to )t recent
reports
from France, the end of the year
in business ac¬

brought a slump

ordinary budget-.

of the

373

450—500

149

212

90—140

etc.

Total

-—;——

During the financial discussion
the Assembly, Mr. Philip was
repeatedly accused of overesti¬
mating receipts and of under-esti¬
mating expenses, especially in the
"extraordinary budget."
7
*-

[currency inflation - during ; the

past year. In order to cope with
current budget needs, the French
Treasury had to draw heavily on
national savings and to borrow

Currency Inflation Continued
The

Frs.

uncovered budget
deficit of the state, to which those
of
the
municipal
budgets
and
other public expenditure, not con¬
tained in the budget, must be
added, has been the main source
large

100,000,000,000 were borrowed

directly

indirectly

000,000,000 Treasury Bonds were
issued

mostly taken over by

and

nationalized

French

extensive

Due

States

liquidated Frs. 120,-

assets

from Banks

$ 66,779,250.49
97,902,766.12

Securities

Banking Premises Occupied
Customers' Liability
Other Resources

LIABILITIES

Total

—ij

—

for

Dividends

Reserve

for

Taxes—

Reserve

was

14,910,122.44

3,002,842.00
90,000.00

*'"696,488.56

•

——

186,835.05

57,913.94

DEPOSITS:

♦♦Commercial, Bank and Savings
S.

Government

*ln

addition

standing in

shown

286,262.99

have

the amount of $6,939,018.05.

unused loan

commitments out¬

♦♦27m includes $2,834,009.93 of trust moneys on deposit in the Banking
Department, lvhich under the provisions of the hanking law, Section 710-165
of the State of Ohio is a preferred claim against' the assets of the bank.

Member Federal Deposit Insurance Corporation
Member Federal Reserve System

French

cur¬

Monetary circu¬

end

the

Frs. 580,000,000,000 at

German

occupation

new

value

the French currency.

•The deficit of the: French

bal¬

ance of

rent

Frs.

143,000,000,000 or 257c comes
probably close to the amount of
direct \ and indirect
government
borrowing.
The

French

internal

debt

to become once- again •• a
problem for the French

likely
major

Government and the French pub¬
lic.

1944

Frs.

the

public debt

was

1,334,000,000,000 but had in¬
to Frs^ 1,830,000,000,000.

creased

000,000 of its assets abroad.

Dur¬

ing the past months,, the Frepcli
substantially increased their ex¬
ports. 3 Exports of goods covered
only 257o of imports during the
first six months of 1946.

36%

.was

in October and
757© of imports

September, 43%
estimated at

was

The ratio

during the period July-

ddring; the, months November and
December,-.

Despite this favorable develop¬
at; the end of last year. The up¬
ment of her exports, France will
ward trend continued during 1946
need .large foreign loans during
as
the debt reached Frs; 2,041,the coming years. She has already
000,000,000 in August and may
made an application for a $500,-'
now
be:-estimated
at ;at least
000,000 loan from the new World
Frs.

2,300,000,000,000.

On-

Bank.

capita basis, the
only $453 as
compared to $1,885 in the United
States and $2,152 in Great Britain.
a

French

per

•

debt

But France

try

was

today is

income

its national

and

poor coun¬
was

estimated

at only Frs. 2.000,000,
000,000 in 1946. Short term debts

balance

coming

$i;577,000.000 in 1947, $957,000,000
in; 1948, $303,000:000 in 1949 and
to.

disappear eventually in 1950».

Substantial Foreign Credits
;
Needed * ■ •
V 7

France, fails to; obtain new
credits
during.71947,

has 7

un¬

substantial

dangerous

the

payments during the
is expected to be

years

inflation

race

be¬

her

Monetary
leashed

She will continue to seek

foreign credits wherever they cart
bej obtained.
The deficit of the

(Treasury bonds and Bank Cred¬
its) represent approximately 65%
of the total.

foreign assets will be used up
living costs and in a few months. In this casa, the
Fall, 1946, the foreign
exchange
rate
of
the
French: price level was six times Franc could hardly be defended
as high as that of 1938, while the
for. any length of time*
,
; •;
wage index was onlv 400-459 on
The United States already has
the -same
basis,
French trade loaned France some $2,000,000,000
unions obtaining a general wage
for reconstruction purposes.. The
increase
of 25%. • Today, prices
Franch expect to receive further
have gone up to eight times the credits
to
cover
the deficits of
prewar level and, in view of the their balances of
payment. 1 They
rising living costs,;the unions are point out that America has an im¬
now
coming out with new wage portant stake in- France's eco¬
tween

prices,
When

wages.

about further
will add; new

bring

strain to

already troubled po¬

litical and economic situation.

The

inflationary

trend

the

last months in- France has had an
adverse

life

effect

whole.

the economic
a certain ex¬

higher prices contribute to
production
but their
continuous upward movement also
induces;
producers
to withhold
their goods from the open mar¬
kets.
Most of the prices are still
regulated by the authorities. Pro¬
ducers, therefore,: prefer to sell
"black." The French "black mar¬
tent,

stimulate

nomic, political and financial fu¬
ture, and they hope that. Ameri¬
assistance will not be stopped

can

suddenly;v

Today, large French orders are
being carried out by American
factories.
lines

Production
industrial

and

certain

transpor¬

tation equipment has been. key&J

technical standards

to French

dimensions.
fail

new

through,

come*

France,

does

because

hdve ) enough,

not

be1

conservative

"hard currency's to pay for them,;

the French financial

because

situatioiiv h e'c 6

scourge

gerous

life

nomic

temps

desperate,

long

to restrict

failed.

the

stability of the national currency
been

not

has

French

restored,

capitalists will continue to seek

haven for their assets abroad. The

has

political !

also to

repercus-

prolonged and aggra¬
This may

France.

Mr.

bring about the
Blum's

and the formation of

velopment would
interest

weaken

♦

This de¬

go against

Western

the

Cabinet

Communist-

dominated government. 7

and

suffer

financial-monetary crisis in5

downfall

confidence

vated

the

siona

at-

far—all
or

suppress

United' States

The

consider

eco¬

French

and—so

its activities have
As

The

estimate.

the most dan¬

market" is

"black

and

orders should

ket!'—according to some experts
American
industry 'J> will
absorbs today one-third of the
national product, which appears to considerably.,
'

strength
also

the- Communist vote

has frightened many French

industrialists
new

The

war.

most

the

Vichy

occupation

running the printing
speed.

again

costs by

presses

Charles

borrowed

but its debts
the

paid

top

The liberation government

General

State

from ;the

were

the

December,
On

Dec.

Government,

Bank

ance

Franc

Some

the

to swallow up
ment

its to, the State had again

for

reality

In order

having

companies, shelved its

12, 1946, the Bank of

60,000,000,000.

after

nationalized

as coal

taken

subventions

govern-

compensate

high production costs.

Actual

France

flight
1946

enter¬

mines continue

substantial

capital

influence

the

powers

Considerably

/
from

probably did not

the

European

their
con¬

tinent.
Political

mines, banks and insur¬

prises such

larger amount had been probably

that

nationalizations

far-reaching nationalization plans.

Franc© reported that direct cred¬

Frs.

coal

1945,

reached

believe

who

to alleviate these fears, the French

over

liquidated with

devaluation of

wave

basic industries is ahead-.

Gaulle

$244,255,134.40

—

this item

220,131,329.47
4,893,339.95

TOTAL
Q.

— -

—

Other Liabilities

circulation

banknote

the

Payable--

against Frs. 120,000,000,000 before

Interest, etc
Under Acceptances

that

clearly

for

cause

inflation.

2,010,122.44

„■

for

Liability

main

lation

Funds

Capital

Reserve

indicate

France

rency

$ 6,000,000.00

put

6,000,000.00

Profits

■

the

$244,255,134.40

—

Undivided

the credit needs of the State were

3,717,499.73
57,913.94

—

TOTAL

General

cope

reports of the Bank

597,823.70

Under .Acceptances—

Capital Stock
Surplus

13,734,215.82

Stock

Reserve

order

61,105,664.60
360,000.00

♦Loans and Discounts
Federal

abroad

The weekly

Bonds

and

pp-

the domestic market,

with French reconstruction needs.

RESOURCES
Cash and

banks.

000,000,000 or $1,000,000,000 of its

CINCINNATI,. OHIO
of December 31," 1946

the

from

In addition Frs. 70,-

central bank.

the Treasury

United

500—550

■

increasing amounts from the Bank
of France. Internal loans in 1946
amounted to Frs. 125,000,000,000.

Circulation

credit requirements of
brought about a'rapic.

State

increase

erations

Other Bonds

415

;

299.

But, despite, these

Heavy

Note

price boosts; and
375—400

203

150

—i\

the

Statement

•

the

certain

—

deficit

Increase

demands. New wage increases are

Comprising: deficits of the French railways and
nationalized enterprises, reconstruction fcrfed-

during

fie current year has than it 25%
been was
igher in the average

590

EXTRAORDINARY BUDGET—

its,

117o,higher than
' .7
•

585

438

Deficit

of normal at the end of 1946. Coal

before the war.,

410

289

Receipts

key industries even to 90%

production

S: 180

12&

——

National de Statistique," was
of

1947; (est.)

1946

;

412;'-

Total

ac¬

French

19%...

Military

ily—at least until November, 1946.
the

1945 and 1946
(In Billions of Francs)

Civilian

dustrial production went up stead¬

Minister's statement

Finance

The

that, from now on, the "ordinary

today
an
economic tially. The French, Mr. Philip de¬
Despite current political, clared in the National Assembly,
financial and social difficulties,
French
economic
recovery . has
ORDINARY BUDGET-~"

cording

not

may

drastic enough to stabilize the

enigma.

The French industrial output,

has

evasion

Tax

taxes.

represents

^een surprisingly strong.. Her in¬

population which
far avoided paying adequate

income

down the

ities.

additional
collected from
the

that part of the

the part of the authorities to "hold
line

bulk

will

revenue

ment is tackling the difficult task
has
of
balancing
the
budget.
The

"the

the

But

price level reflects also the dwin¬
dling purchasing power of the na¬
tional currency.
All attempts on

French Assembly, some days ago,

$200,000,009,

Capital exports, therefore,
strain on the external

poses.

The

indirect

several

increase

•

payments during the cur¬
year will run up to, $2,250,From Frs. 570,000,000,000 iii
De-^
taxes such as the tax on railway
000,000; but the government • has
cember, 1945 it had climbed ux> to"
fares, on subway and bus tickets 'Frs,- 713,000,000,000 on Dec. 12, obtained
$1,300,000,000 foreign
the post and telephone rates.
'1946. This circulation increase by loans and has liquidated $1,000,-

basic

that economic recovery

rule
not

France.

tion is

brighter aspects of the economic
picture.
This development is a
new

Great

$100,000,000

foreign exchange transactions
are! strictly controlled by the au¬

certain
Direct thorities. But the French poslwar
State borrowing from the Bank balance of payments shows al¬
is expected to reach Frs. 100,000,- ready a large deficit as a result of
000,000 by the end of 1946.
imports for reconstruction pur¬

Britain and only 22.1%
This is probably an

exceed
asi

of treasury bills.

amount

the national income in USA, 40%

imports

conceals

probably

than other
Taxes represent 50% of

less heavily taxed

are

Thursday, January 9, 1947

economic consid¬

and

erations, therefore, speak in favor
of

American

continued

France.

But

to r France

their

recovery

help

American loans

only

can

effect

full

nomic

new

on,

if,\

then
French

have
eco¬

simultane¬

ously, the French make a serious
effort

reorganize their - public

finance.

Public morale in

France*

especially in matters; of tax pay¬
ing,

must

restored and

French

people must regain

fidence

own

the

currency.

the
con¬

stability of their
V

Volume 165

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4558

■

responsibility of putting this coun¬
try back on the American rails of

Task
in

United

the

for

flicker

who

worth

millions

those

Bill

who have been crushed under the

the

ernment of the United States for

the torch of freedom and progress

who prefer the Communistic
system, or any other form of ab¬
solutism, to our American system.

Domestic

Grave

Here
and

; v

home

face

Those

grave

this

which

into

has

nation

been

of such magnitude it
paid off in more thar
century. Our people are bowed
be

down .under

should

intolerable.
Strikes, industrial disagree¬
ments, scarcity of raw materials
and machinery, and a large rem¬
nant ; of
governmental controls,
still hamper production. *

oceans,

and two wars on
haye plunged us.

Expects Cooperation

principles of freedom, of
ment

i f say to you, my colleagues, with
sincerity, that for the con¬
structive accomplishment of good
Government, I hope»to see a de¬
deep

gree

members

aisle,

between the

cooperation
On ;

both

this and the

between

and

other" branch

the

Congress

which will be unsurpassed

history of

the

sides

in the

nation. ' ;

our

are

to accomplish successfully

the

painful

war

conditions

readjustments

from
spend¬

deficit

ing, waste, and the "don't-countthe-cost" policy. Those readjust¬
ments must be made in every field
of our domestic economy—agri¬
culture, labor, small business, big
business and by all the citizens.
These readjustments facing us
call for hard work, endurance, paA tience and, above all else, honest,
earnest, sustained cooperation be¬
>

tween all classes, se.ctions
dividuals in the nation.
.

one

people)

and in¬
v

• :

class of the

group,

section of the country

heroic

our

have

to it that those who have

suffered

for

American

read¬

justment may be.
' ' T *
We simply must get back to the
sound philosophy that the Gov¬
ernment
does
not
support the
people;

must be held inviolate.
the safeguards against
dangerous drift away from

: conclusively that
people surrender
their liberties to a government by

tions

prove

whenever

for

men

the

too

results.

long a time, disaster

'• *.* 'v'h?'°!.x\X~v.

.v.....

No disaster can overtake Amer-

ica without all the citizens suffer¬

ing

the

We know

consequences.

must be

fully restored as soon as

efficient

and

wise

exercise

tory
that

and

sense

government—ad¬

ministration for the common good,

partisan advantage or
private gain—will keep America
great, free, prosperous and pow¬

and not for

erful.

■.

There is
'<: x

•

room

.•••'

r:. r •

and

ijy

the

ica's

little to

States,

ing the rest of the world

that

peace. Our
not

•

sound

does

lower

can

deny, that competition is

regulator of prices and
quality than all the governmental
bureaus and departmental
regula¬
tions which could be
organized Or
devised.
Price

mean

Lcxx

un¬

doctrine

any

and

alism

Guide

social

and

economic

progress

face

purpose

help

rest of the world from

economic

chaos,

and final utter

saved

chal¬

liberty

our

Representatives and of

ment, of all classes, and all citi¬
zens, to the end that we may meet
the task

successfully.
x '*
give us strength and the
wisdom, the will and the faith to
go
forward to meet and solve
God

confusion
all

while.;

and

builded

all other branches of the Govern¬

these

deeply convinced if Amer¬

faith

was

it. The pillars of

House

to save

destruction of

Independ¬

upon •

operation of the Democrats of the

save 'the
despotism,

social

that makes life worth

ica

the

founded

and progress rest upon it.
s
We want and hope for the co¬

the rest of the world will be found

f We must

Declaration

was

upon

in how we, in America, solve our
problems.

lenge of this high
ourselves, and to

God

materi¬

upon a

God. The Constitution

The greatest influence for good,
for freedom, for spiritual, cultural,

ideals

for

which would substitute the

The

World

high

reverence

State for the Deity.

ence

Must

their

cast

aside, and embark

up with us.
Only a
strong, sound, solvent, free Amer¬
ica can help to rescue the world.

America

their

problems, and' to help Save

for posterity all that our forebears

put back

nobly

the high road to spiritual, cul¬

for

us.

sacrificed to
\'-- :;X >xXx.:XX;

provide
/

'■

„

Continental Illinois
v

jX-.-XXXVV,..-.- >

y.* V-

'•""•'•V

-■■J)

National Bank

XX. -"V-X

Trust Company

and

OF CHICAGO

Statement
!

can

will

■

we ever

prosperity

knew before.

comforts,

new

miracles

our

production

and

taxation. A

decrease in taxes

possible

•

-i

•

,''X.

10,500,000.00

-*•'- 'jr.

v~\

$2,227,056,286.04

;•

.*:

.......

:-v

•

X X '

..<,

*•'

" V

X. $2,038,434,994.25

Acceptances
Reserve for

2,134,435.31

Taxes, Interest, and Expenses...

12,478,871.36

Reserve for Contingencies

18,112,575.67

Income Collected but Not Earned. .X.........

can

Capital Stock.

through,
r

by,

Deposits
"

•

prices

only

5,485,637.81

Banking House.........X.... XL

1XXX:

lems directly related to increased

made

2,071,666.37

Income Accrued but Not Collected

LIABILITIES

unparal¬

and must be accompanied

3,600,000.00

new

capacity for mass production.
One of the most important prob¬
lower

53,925,291.42
406,741,298.36

B§§

outlets^ for bur in¬

genius and

565,280,423.07

Acceptances.X,...

production,

•

Customers' Liability

X >

•

know

can

achieve

Obligations..,,.,. 1,179,451,^69.01

Stock in Federal Reserve Bank.v.......

XX'X'X

Loans and Discounts............. 1,......x

prices and prosperity in this

can

—:

Other Bonds and Securities;.........
X,(
;;,;/7

won't.
full

United States Government

fail, will

J—

Cash and Due from Banks..... .T.

accom¬

—

RESOURCES

honest

achieve

of Condition, December 31, ig^j.6

.......

310,091.30

X; 60,000,000.00

Surplus.................160,000,000.00

ex¬

tensive economies in Government.
It is not the intention of the Re¬

publicans in this Congress blindly
wildly to slash here and there.

Undivided Profits...................

^X'.XX...:

;'-L

35,585,318.15

;X ^'xx-: '

$2,227,056,286.04

1'?.'

The

best

evidence

the study committees
at work

for two

that

United States Government obligations and other securities carried
at

have had

$133,961,981.34

are

pledged to

and for other purposes as

secure

required

public and trust deposits

permitted by law

and more,
time when we

years

preparing for the
should be

Wage increases
.1

any

and

levels

nothing if
people cannot get fuel to warm
them, food to sustain them, homes
to shelter them^ and fabrics to

yielding against

themselves

Possible

can't.

attain

can

greater than

deny,

better

people

our

miracles

trouble, if

nation. We
We

•

economist

toward

and

can

war

because

ventive

trend

any

...

sternly

which would seek to persuade the

leled

economy.

faces

our

We must stand firm and

ness.

the danger of so depleting
weakening ourselves as to- be
dragged down with them, instead
of being able to help them lift

Atlantic

Prosperity

greater

even

opportunity for jobs, and low¬

Competition Best Price Regulator

set

the

(

and

•

miracle

prices

American

and

war.

weakening of religious liberty and
influence in our civilization, or
any sacrilegious creed of Godless-

too

must

against

try

practical for¬

disarmament,

avoid

pretends Amer¬

An America which

plish

help the rest of

free

help themselves.

■

men

the

both.

even

Unparalleled

and

for

outlawing of

We all recognize that while we
desire to do our full share in help¬

part in the great struggle
less than decisive.

full

mula

'/"'A

be led to rely too much
United

fighting

any

the world effectively, we must re¬
gain a basis of full production,

persuade the rest of

adopt

foreign affairs, there is
the war-stricken nations

them

be because

t'j
c

helped
of

war

now

arms; or by keeping alive con¬
flicts between classes within our
own' country. * '
.
.

America

*>-•)>■

millions

won

person

can

endeavor to
the world to

our

fought another
war in the Pacific
practically un¬
aided, and almost single-handed—

of jus¬

clothe them.

•

r' ."r V M

"\x

victory.

conflct, while

was

adequate, ef¬
ficient national defense, while we
an

in Ger*

years

with

American way, either by force of

ministration

for

billions of dollars in machines and

so.

Before

stand with

sourid

XX''X;-

governors, the people must
frankly told the facts about
government, its policies, and
its operations.
.Truth, honesty and sincere ad¬

supplies

'
x x) t-X X;
•
We cannot—we simply cannot—
allow any forces outside or in¬
side this nation to destroy our

their

basis.

section, and

class of good Americans to

every

on a

race,

Outlaw War

revenue, and at the same time ad¬

just prices and quality

party, to cooperate

We call upon every

federal

regardless
or

offensive war, and were on the

road

bureaucracy. The his¬
America
hasproved

destruction.'

;

Allies

designed to mislead the
people, lie the seeds of national

their

In false information and propa¬

and

In three years we were

tice greater than that of any gov¬
ernmental

Russia,

many.

Mandatory

Once

wisdom

wages,

right.

suicide.

achieving a
higher national standard of living;

nation,

economic

re¬

for

expansion which will create

desper¬

people

with us in an honest effort to save
this blessed country of ours from
ruin and destruction
by internal

years,

money

the

the Constitution,

tuitive

this

color, creed

commence

the

for

to the plain, facts of accom¬

eyes

Laws

free

good.

necessity

plishments.

three years, free labor, free
mean
that enemies of this coun¬
agriculture, free industry and free
try and of our people, conspiring
cooperating with each
to Overthrpw by violence our gov¬ citizens,
other, Surpassed 40 years ofXwar
ernmental, economic and social
preparations in. Japan; 20 years of
system, shall have license 'so; to
war preparations in
Italy; 20 years
conspire under the protection of

budget;

individual

XX I am

ple of this nation believe America

of assembly, and of press does not,
and
must not
be
permitted to

Government

long

;

is ready to go to seed, and wither
on
the vine, simply close their

form of political monopoly. On the
other hand, freedom of speech,

government and

control over their

Fascists—and

nickel's worth of dif¬

Those who would have the peo¬

Constitutional representative
system of Government into some

practicable.
To

sky-rocketing of prices,
hope for continued

loot the nation.

our

that

through painful experience.x
The government's control over
the private affairs of the citizens
must be ended, and the people's
control
over
their
government

labor x and

tatorship under which they could

are

ganda,

Past events and present condi¬

failure

stitutional system of ours in favor
of some form of tyrannical dic¬

free press^

people fnust support

the

the Government.

hope for
between

America

ference between them—who would
like to overturn this grand con¬

again history has clearly
demonstrated that only under a
ganization must, like freedom, be government of
laws, and not under
based upon equal justice to en¬ a
government by men, can any
dure.
Whenever
that
balanced
people long remain free and go
justice is disturbed, it must be re- forward to a better life. The peo¬
stored through
proper readjust- ple, given the
truth, possess an in¬
ment, however painful that

could

there isn't

Religious liberty, the rights of
free speech, of free assembly, of

any

;

persons

Communists

died,

ideals,

have not sacrificed in vain.

They

controversies between great or¬
ganizations of labor unions, or be
tween
unions
themselves, with
picket lines, silent factories, and
paralyzed production, are those

down

see

could

who

country must

our

never

only

tinued

or borne wounds. The
ideals they so nobly fought for we
must maintain. Those of us privi¬

leged to live for

can

for

management, who could hope for
a failure of
production, and con¬

govern¬

laid

formula

and plenty

cooperation

their lives

long profit at the expense of
the rest. Economic and social or¬

who

those

women

history

our

and

The

pow¬

for which

and

men

through

can

progress

taxes

may

tion.

)■/ This cooperation is requisite if
live

and

citizens in

call upon every
liberty-loving man and woman in

intend

paying off the national debt;

danger

Production

unless production is kept
going
while
labor-management
disagreements are being settled.
To this great pressing problem, we
must give our immediate atten¬

tect the liberties of the people and

secure

■■

basis

progress

■

make

X:-x;; AXX 'x:X "XXXX ^x*,A

found

must

hours.

Such

strong vigorous Con¬
Congress determined to
face
firmly
its
responsibilities;
and a Congress which will pro¬

after

the

prog¬

by ourselves

We, therefore,

jobs,

Uninterrupted

gress—a

must,

material

close ranks and fight for the

provide the incentive for business

are

work

governors.
This nation can remain free only

balance

the

both

and

people and we
that it shall be fulfilled.

formula

until

reduce

wherever,

common

ate

promptly, as it is feasible to do so.
We have given that promise to the

duce

found

American

produc¬

prices, and fair profits, without
decreasing wages, or lengthening

;

their

two

rates

intend

contracts; to cooperate in achiev¬
ing increased production, lower

their government and

delegate its fundamental
ers either to the Executive
arrogant bureaucrats. v
-

never

and

We must recognize the

rec¬

obstacle to business

expansion;

and

basis

the

them.

High taxes have long been

social

We must cooperate

be reduced

can

intend to reduce

ready to shoulder their
fair, share of responsibility far

not

Such

sides

Congress. Congress is
the people's special instrument of

prayerfully conscious of our re¬
sponsibilities—as we seek the co¬
operation of every man and wom¬
an in this nation to'help pull our
heloved country out of the eco¬
nomic bogs into which mistaken

and

dominant

through

justly and effective¬

tion.

concept of gov¬
ernment rests upon the idea of a

over

management

stoppages

can

•

disagreements

and

ly without

American

control

labor

the
■'

"XX ■
formula and a

which

upon

be settled

can

■

between

They

value

must find

basis

be—re¬

must
L

Our

;

these
momentous problems, the
Republicans do not gloat over a
victory won. We Republicans are

policies,

Government.

be—and

lA-A Dominant Congress A

face of

this time and in the

believe in the

not

moved.

which is well nigh

American

burden of taxation

who

exchange

dollar.

of life which has made us the
greatest nation of all time, should
not be permitted to occupy posi¬
tions
of trust
or
power
in the

plunged is
cannot

room

way

pressing problems. The debt

governmental costs

tax

any

Problems

offset by
strikes, and

ognized

duced

Gov¬

future—we must keep

alight dn America.

and the fixed-income people
alike,
of purchasing power through a re¬

Rights.

There

own

are

idleness in

will rob the wage earners and
the salaried people, the farmers,

living is expressed in the

of war—for the sake

all that makes life

juggernaut
our

they

by such increased costs and prices

—for

ing

are loyal to our Constitutional
system and the Bill of Rights. The

very essence of

sake

destroy

weeks

sake of the world—of civilization

the

would

and

world would be
Therefor, for the

out, the

left in darkness.

those

America. All true Americans love

should

States

tural,

ress, it must be done
and ourselves alone.

Our studies have shown

progress.

(Continued from page 126)
ress

159

can

Xf'<

mean
'

,xi:> ~:jt;exuxc:,',"lI~. el

i.'".

nothi

charged, as we now are
charged by the nation, with the
•

■

...

¥■'■*>

Ahmktr FtJrral Dtfttil tnnranct Ctrttraiitn

,.i

♦•y

THE COMMERCIAL & FINANCIAL CHRONICLE

160

"Our

•*

•

j-'"

'S.'

•'

Britain Favors

there would be from a

appearto have toned down

redemption of the March notes, than
partial redemption bf certificates. . , ,

(Continued from page 124) ;
the other hand, had to undertake
in the Washington Loan Agree¬

RESERVE REQUIREMENTS
The termination of

after

ment to restore the

state of hostilities, by Presidential decree,

convertibility

of sterling in July, 1947. For near¬

brings with it the end of exemption from reserve requirements, of
war loan accounts on June 30.
These accounts have now declined
.

||jf

Multilateralism

pointed out that there would be more of a saving in v

was

interest charges through the

■

the somewhat automatic and impulsive action
during the early days of the New Year. ... It seems as though trad¬
ers and investors alike are now inclined to be a bit on the cautious
considerably,

1•*''

•'*../»

CHIPPENDALE, JR. j

By JOHN T.

government securities markets

The

opinion is held in some quarters that the Treasury is likely to pass
up both the Feb. 1 and March 1 certificates and concentrate on the
redemption of the 114% notes on March 15. . . . >
•

Reporter on
Governments'9

Thursday, January 9, 1947

ly five

the

Britain will thus get
both worlds.
Any¬

years,

worst

There has been some to levels where the carrying of reserves against them will have prac¬ body earning sterling out of cur¬
'profit-taking on the one hand, while on the other there are reports tically no effect on the banking system. . , , While the Treasury will rent transactions will be entitled
of good buying in both the bank and restricted long-term 2y2s. . v . no doubt continue to keep deposits with the member banks, they are
to claim conversion into: dollars..
not likely to be more than one month's expenditure, or roughly $2,There are differences of opinion as to the more immediate
On the other hand, the large ma¬
500,000,000 based on a $32 billions budget. ... It will, however, be
course of the market, since it is felt in some quarters that prices
jority of countries will be entitled
another control for the authorities over the money markets.
;
have gone ahead a little too fast, and must adjust for this advance
to refuse to convert into dollars
before a trend will be reestablished.
This has resulted in,
the proceeds of British exports*
dealers and traders taking advantage of the demand to lighten
It
is no wonder Sir Stafford
side, pending

a more

definite trend in prices.

...

positions....

that must be
taken care of, which has lead to sizable purchases of both the
eligible and ineligible issues., \
contrast to

•

this there is the need for income

EXPECTED
/
There is little doubt about what the financial community expects
pf the government market in 1947, because there appears to be a
rather widespread belief that there will be a very good trading
market, with substantial activity," although the trading range is
likely to be considerably narrower than that of 1946. . . . The action
of the market in the coming year, it seems, will be influenced in a
very important way by the switching that will take place, as institu¬
tions adjust positions in order to maintain income. . . .
■
The bank eligible issues appear to be in a somewhat favored
position for the time being at least, with the demand coming not !
only from the commercial banks, but also from non-bank in¬
vestors.
This is attributed to the belief that the deposit banks,
that are likely to increase durable goods loans, will be inclined
to dispose of some of their longer-term obligations in order to
GOOD TRADING MARKET

...

■

reduce somewhat the risk

factor.

comprehensive course

involving " continuous

the, intermediate- / and
to maintain income which has been maximum employment, that busi¬
operating expenses. . . . These shifts in hold¬ ness should endeavor to develop
ings of bank eligible bonds should make for an active trading and preserve vigorous and fair
market, and at the same time afford opportunities for trading profits competition; should emphasize re¬
for those that follow the market closely and are in a position to take search for the discovery of new
products
and
better methods;
advantage of price swings.
should pass on, as higher produc¬
BESTRICTEDS SEEN ATTRACTIVE ;
'
tivity' permits, a substantial part
The restricted bonds are still in the upper reaches of their recent of the gain in the form of higher
trading area.
; Nevertheless, there has been a tendency, in" some wages ' and 1 lower
prices;
and
quarters to point out that these obligations are still at such attractive should employ practices that help
levels that an upward revision of the trading range is in the making. to moderate economic fluctuations
The price trend of these securities will be affected by the refund¬ and thus foster economic stability.
ing operations of the Treasury as well as the selling of corporations
Government action for the peo¬
and others, that will need funds for business and similar purposes.
ple:
vvV The demand is still large and insurance companies and savings a. Should assume its inescapable
banks will dominate this market as they have in tim past. Y. . : /
f
responsibility for creating a fa¬
Although these institutions will probably await the outcome
vorable climate for a dynamic
of impending developments before they evidence much interest
free economy under which peo*
in the restricted bonds, it is very likely that they would take
will be in the market for

longer-term eligibles in order

affected by the increased

...

institutions which have been largely on
take advantage

the sidelines, would no doubt

of another such opportunity if it

should develop.

...

REFUNDINGS

government will bear careful watch¬
indications yet as to what is likely to take
place.
In 1946 the pattern was very clear-cut, because the refund¬
ing operations and debt redemptions were carried out to fight the
forces of inflation. :
Although there will be debt retirement and
refundings during 1947, these will not be anywhere near as large
as they were last year,,.
Also the inflation fear is not as important
now as it was in 1946, which probably means that refundings will be
tuned to the action of business, the trend of loans and commodity
prices, as well as the course of government revenues. . . . ; vg
It is the opinion of some that if there should be a minor
downtrend in business and other allied conditions, refundings
and debt retirement will be either eliminated or very sharply
curtailed.
On the other hand, if there should be a marked
uptrend in business, prices and loans, and the inflation fear is
again in the forefront then refunding and debt redemption will
:r Refunding operations of the

ing, although there are no
.

carried out very vigorously.

of the government as well as trust fund balances
will be available for refundings and debt redemption during 1947,
but the extent to which they will be used will depend considerably
Cash surpluses

upon

the trends in economic conditions, that are just beginning to
Therefore, it is believed that little will be known about

unfold.

the refunding program,

trends.

until more is available on these basic business

LOAN RATES
The

increase

considered

in rates

loans by several New York banks is

and

normal occurrence

it is not likely to have any

appreciable effect upon the government securities markets. . .
firmer trend in bank lending rates does not reflect a change

general level of short-term interest rates.

This

in the

Certificates are still
is

pegged at %% and are likely to continue that way, until there
clarification of the trend of underlying economic conditions. .
What the

and maximum

loanable funds.

COMING MATURITIES
-

...

y.„

'."V

- ,

along with expected large Income

payments on the 15th of the month, bring forward discussion
about the redemption of $1,000,000,000 of certificates on Feb. 1. . , .

tax

threatened

inflation.

to i carry out

such;

projects, not only planned
blue-printed with all fi¬
nancing and legal details com¬
plete.
Maintain a broad program of
social security benefits that will
alleviate the fear of total loss of
but

■

*'
1,

-ii

coun¬

has accumulated

ance

some

adverse

bal¬

$60,000,000 in rela¬

tion to Britain: Unless Britain de¬
cides to. pay high .prices

for Dan¬

ish dairy

produce the choice will
be between cutting down British
exports to Denmark and carrying
frozen balance for years.
The |
position is the same in relation.to'!
France,- only on a ,;much larger *
a

In such circumstances the

scale.

temptation for Britain to buy
goods she does not really want or
income and privation,
vcannot
afford - is
really
very
Discussing the need for an in¬
strong indeed.
vestigation of the operation of the
The unilateral renunciation of
competitive system, the report
•

bilateralism by Britain cannot be

said:

of expected to produce any imme- ■
diate practical effect.
Bilateral¬
the various ways in which com¬
ism will remain the policy of poor
petition is now infringed by pos¬
countries for many years to come*
need

"We

sible

abuses

tional

reexamination

;

patents, interna¬ The
only significance of Sir Staf¬
and monopolistic
ford
Cripps' declaration lies in
as combinations in
its effect on the attitude of con¬
restraint of trade on the part of
tinental governments towards the
both business and labor.
principle of bilateralism and mul-,,
:
"We need also a thorough study tilateralism. Until now
many con¬
of how competition actually func¬ tinental
governments,
following
cartels,
practices such

multilateralism,
still

Britain's lead is

important factor in de¬

termining the fundamental prin¬

ciples

policies,

continental

even

economic

if in practice the

requirements of the actual situa¬
tion have to

prevail.

Commercial Air Pad
Between U. S. and Peru
Under

The statement emphasized the
and to foster multilateral
international implications of- do¬ Press
private trading.
'■
said:
Labor., and agriculture, accord¬ mestic policies when it said:,

date

Dec.

United

peace

ing to the report, have the same
interests as business in fostering a

"The

attainment

and

mainte¬

advices

from

Lima, Peru,,

"The first commercial air agree-,

production,
ment between the United States
dynamic economy and in moder¬ employment and living standards
ating economic fluctuations,. and in any one country,is a matter ,of arid Peru was signed last night by;
therefore
and

of high levels of

promote

international

policies

directed

concerted international

objectives.

Govern¬

cal

invited to

are

pursue

toward those

nance

Without Foreign Minister Enrique Garcia
action, lo¬
Sayan and American Ambassador

concern.

policies for maximum employ¬

it was pointed out, should ment cannot fully succeed; and
recognize its great responsibility without a growing volume of in¬
in such an effort, and should use ternational trade ^ind intercourse,
ment,

Prentice

Cooper.

"It authorizes United States air

lines to operate routes into and
it possesses for the the possibilities of raising local
through Peru, and grants recipro¬
mitigation of the upward
and standards of living are limited.
cal rights into and through the
downward swings. It should en¬
"Governments should therefore
sure that its policies and actions
pursue
whatever policies they United States to Peruvian air
in other fields are co-ordinated
adopt for the furtherance of do¬ lines.into a consistent whole with its
mestic employment with due re¬

the implements

anti-cyclical

specifically

coun¬

aim

that

government

international trade.

the integration of

all

findings suggested this course

government:

^Yhat will be $one is purely a matter of conjecture, although, the Is

Use methods of

tend
w

direct result of the agree¬

growth of ment, two American commercial
Through ap¬ air lines, which have not been

propriate agencies, governments
aspects of its policy touching should co-ordinate their employ¬
with a view to ment policies, foster counter- cyc¬
stabilization and development, the lical policies, and develop joint
should

"As

tries and the prosperous

out

Pointing

policies gard to the welfare of other

the economic field

Th^ t\vo recent war loan calls,

production.

and actions.

does reflect are the
banks, some increase in the risk
a minor step-up in demand for

order

"Out of this investigation should
extension come realistic policies for dealing
of
private
enterprise,
foster with monopolistic practices, for
vigorous competition, and es¬ extending the area of effective
tablish
a
tax, structure and competition, and
for promoting
other policies that stimulate en¬
stability in ways that will supple¬
ment competition and not restrain
terprise and output. ...
c. Should
provide
appropriate or extinguish it. In particular,
aids " to
business, particularly this should encourage and facili¬
through the improvements of tate the entry of new businesses,
facilities for the dissemination opportunities for
the self em¬
of - business
information and ployed, and the expansion of ex¬
economic statistics.
r:
:
isting businesses wherever there
opportunities for increased
d. Should pursue an international are
policy
designed to preserve production and employment."

higher rate for over-the-counter loans

larger operating expenses of the
factor in these loans, as well as

•

continental

the

that the maximum

b. Should encourage the

...

suits

- '

tions, what it can and. cannot do Britain's lead, regarded bilateral¬
to mitigate depressions, and how ism as the basic principle of their:
its action in this respect is ob¬ permanent policy.
As a result of
structed,^togetherwith' careful the change of the British official
pie are encouraged to create consideration of alternative forms attitude, they will now regard it
for themselves the fullest pos¬
of competition and alternatives to as a necessary evil which ought t<*
sible
productive
employment competition.
be replaced in the long run by
1

advantage of any price recessions to pick up securities. . . .
The last downtrend was missed in many instances, and these

EYE ON

ing productive employment at its
highest possible level can not be
accomplished by simple devices or

maintaining

.!'«-*•,

tries to maintain the inconverti¬

program it is absolutely essen¬
tial that, the government have
on hand at all times a backlog

for

to most coun- 1

•
-Vf

emphasis being placed on the as¬
sertion that, the task of maintain¬

business

unattainable at present*

tries.

times

moon.

end;

unsatisfactory

But he is crying
For convertibility

and for many years,

•

cooperation between government,
business, agriculture and labor,

ities

most

pub- bility of their currencies in exist¬
ing circumstances. For in doing
of
expenditure
be
made
in so they hbpe to induce their cred-r
times of low business activity itors to buy their goods at high,
For instance, Denmarlc
and the absolute minimum in prices.
lie works

the part of both business and
labor.
The recommendations
action

in depressions.
Time its construction of

combinations in restraint of trade

called for

aimed

dampening
inflationary pressure in booms
and promoting credit expansion

the

for

policies

this

state of affairs.

amplify economic fluctuations.
is
Develop £ money and credit

Staunchly supporting the free
(enterprise
system,
the
report
nevertheless requested a thorough
investigation of the functioning of
competition and a reexamination
of monopolistic practices such as

other

mortgages

from

Cripps would prefer multilateral¬
ism

(Continued from page 134)

hand, these banks will be in the market for by any section of society acting on
the shorter-term and intermediate maturities. . . . Those commercial its own.
The recommendations specified
banks that are not expected to share in the demand for funds that
will be forthcoming from the durable goods industries as well as among the duties and responsibil¬
the

Offers International Stability Plan

moderate

«t«!'«t« »j M w w M s* <*

for undertakings'for the formulation
of

commercial

taxation that conducive to
throughput, the
rather

policies, that are
economic stability

Tworld."
•» * s* « * *

specified, will provide daily serv¬
ice
between the two
countries,
and the recently

organized Peru¬

vian air line will

inaugurate soon

States,"

Vm *

service

new

•* n

...

«*"■# '*•«* *** **

United

the

;v-_'_

■

„

[Volume 165

Number' 4558

•'1

,<y.7v

iTHE COMMERCIAL & FINANCIAL
CHRONICLE

1 >* t\ ^

•

v
,

161
1

Expects 1947 Prosperity for Small N.Y. Businessman
(Continued from page 142)

and

new

better

Manufacturers
ventories

report

low

are

that

such

the

goods / become

available.

in¬

basic

printing

industry

try to absorb very much of these

ex¬

pected to continue until the latter
part of 1947, at which time there
may be some
for job

increases.
ments

The first basic
adjust¬
costs are calcu¬
come in the greater vol-

slackening of demand lated to

paper

printing. ' The city's third umed of low-priced
grades which
materials and parts as
steel, paper, largest industry is faced with will take the
place of -higher
leather, glass, radio tubes and shortages of skilled labor1:
and grades."
•
;
'
*..
v",
fractional horsepower m ot o r s.
paper.
Although the paper short¬
Furniture
"
Many of them have more than age
may; be relieved withiri: the
-

ample stocks of goods in process
but are held up in
completing pro¬
duction because of
inability to ob¬

tain
are

scarce

items,

expected

some of which
be produced in

record quantities
The analysis

during the year.
by industry of the
by the Association

made

survey

follows:

' :,v

likely

resistance at current

price levels.
A seasonal increase
in wholesale5 trade is
expected in

mid-January

retailers start

purchase spring goods.
revocation

that

With the

last October

L-85

advances

Sales
be

although

1947

15%

are

expected
1946

over

indications of
stock yof v< wobleri
are

room

situation is expected to ease some¬
what Wjthin the next few months.

Iron

and

Steel

remain

Inventories—I n v 6 n t o x i e s of
cheaper lines .are relatively high,
better quality bedroom and
dining room furniture is in com¬
but

ex¬

es¬

fats, oils, parative short supply.

alcohol,

although

Leather Products

some

Despite indications of consumer
resistance,, 1947 output of shoes is
expected to be slightly higher than

Products

machinery,

but an improvement
production! ,is in this situation is expected within

filled although

expected

return

the

pre-

few

months.

One

shoe

level

rgoods
shortly after the turn manufacturer has summed it up
we believe, will be
readily of the year.
In. The - two weeks this way: "The old-line companies
disposed' of; in the -first half of prior to the coal
strike, steel out¬ will continue to enjoy good busi¬
1947."' •:
;
put had reached 91% of capacity— ness for: the year 1947,
J>ut The
V ^Quality rayons Contihu'e'in
newer
short ■the highest, level since
factories will not be able
June, 1:945.
supply and new facilities cannot !
Large quantities of steel are re¬ to carry on unless they are strictly
reasonably be expected to come quired for consumer
goods which quality-minded. There is a more

which,-

were

PricesT-Growirigricbnum^

sistance is expected; to,
keep* fur¬
ther advances in
prices of textiles
to.

minimum.

Labor

Statistics

The

Bureau

Index, of, Retail

Clothing Prices for. Nevif York City
was

reported at 185.3 in Novem¬
ber—85.3%
above
the
1935-39
average.
It is believed that
with the
cent drop in

prices of

raw

re-*

cotton,

cotton goods will settle at or
near
former
OPA
prices.
Increased
operating costs in production of
woolen goods are
predicted for
1947, which will be reflected to a
certain extent in
prices for fin¬
ished products.
N'o material ad¬
vances are

anticipated in prices of

rayon goods.

ported in

not available

during the

some cases

are

re¬

to have rela¬

tively large inventories of less de¬
sirable

cautious

war

and for maintenance and
replace¬
ment < of ' industrial

.vhuyinfcvpi;qgram'-Yp^vjthe

part of buyers which will elimii*
riate "thesd;

""equipment.

fringe mahufactUrersi'

Large amounts also are needed •v.;Manufacturers ©f
for building construction
planned other leather goods
for this area.
ciica.
u
It is estimated that good year in
is
caixniclLCU
IXIcll

luggage and

•

i.yjL

look

for

1947, with prospects
vy v.^
{dependent largely on supplies of

uuo

approximately

15,000,000 tons of
>1.
IbafHoP Onrl n-fhnt*
+ inl
steel were lost in ;
1946i duet to leather and other essential mate¬
strikes in the steel and coal indus¬ rials* such as linings and
plywood.
tries.
■
y
•
Prices—In the past six
^4.^x1

—r

^•.

•*

a n

apciam

w-.n

weeks,
Shortages
are
perhaps
most leather prices have increased 50 to
keenly felt in steel sheets which 75%.
It is believed prices will

are

used in production of

variety of
The

steel

consumer

district

sales

wide

durablegoods.

offices

two

manufacturers

become, fairly

stabilized

shortly

after the first of the year and that
a

drop will take place within the

three to five
report that
months, with
they
are
already
booked
up corresponding reduction in prices
through the first quarter of 1947, Of finished leather goods
becoming
while
another firm states it has

backlog which will take

evident by the middle

the latter

part of 1947.

months to clear up.
were

announced in December
(1946) by
some of the leading manufacturers

ventories of leather and finished

goods

are

reported by

manufac¬

turers and distributors.

because of higher
operating costs
and increased
freight rates. It is
expected that all necessary price

Radios

higher-priced lines which
probably can be cleared only by
offering at reduced prices.
adjustments will have been:

Output of radios in 1947

is likely
to be 30 to 40%
com¬
greater than in
pleted within the next few weeks 1946, although competition will be
Foodstuffs
provided that operating costs can extremely keen, particularly in
Although 1947 food production be maintained at
the small table models.
present levels.
Buyers
may- not reach the record 1946
are
getting more discriminating
Paper Products
level, the amount available for
and signs of consumer resistance
domestic consumption is
Paper production in 1947 is ex¬ to off-brand merchandise
expected
already
to be
approximately the same be¬ pected to run approximately 10 % have appeared. The
industry got
cause of the
probability of reduced ahead of 1946, which was a record off to a late start in 1946, due to
exports, according to the Depart¬ year, and this availability of out¬ reconversion from
wartime pro¬
ment of Agriculture.
Per capita put undoubtedly will be reflected duction of

food

consumption
in
1946
was
estimated at 15% above the
pre¬
war
average.
1
y.
Total meat
production for
,

1947

probably will be at least as large
as in
1946, with beef outlook par¬
ticularly favorable. With seasonal

increased

output of converted
products in New York City.
By mid-1947, supply of paper is
expected to catch up with demand
in
most
categories.
Manufac¬
turers of paperboard
products in
New York City who have
been
paper

increase in milk
production, output
of butter is
expected to rise. Some

handicapped

increase

consolation

but little
be

food fats

expected

expected,
improvement can

supplies of mar¬
vegetable shortening and

garine,
cooking and salad oils
petitive shortages
of
and

soybeans.

com¬

cottonseed

yy7.;-;

Prices-—Food prices
be

due to

are

likely to

stabilized at somewhat lower
levels than the record
highs re¬
ported for November, 1946.
•>,

Printing and.Publishing

•7 -The present high.rate of
activity

ana

I could make money sitting at a
telephone all day long just writing out orders that were given to
me, even if I worked for one half of the regular stock exchange
commissions

that

are

now

effect, providing I got enough busi¬

to make it pay for desk space.
I wouldn't need a

ness

That is all I would need to be

order taker.

well-equipped office, statistical
services, wire and teletype facilities, or a great brain either.
If that's what the public wants then the present commission
^

•

rates

in efect are about

now

right.
Unless you enjoy a tremendous
volume of business, with many large accounts and conduct your
operations on a department store basis, you can't afford to devote
the

time

proper account supervision on today's meagre rations
commissions are concerned.
If you specialize in unlisted
securities,, and are not a member of an exchange, YOU SHOULD
BY ALL MEANS CHARGE YOUR CUSTOMERS DOUBLE COM¬

far

MISSIONS

LISTED

BUSINESS, IF YOU ARE GIVING THEM

WHICH

YOU

SHOULD BE

COMPENSATED.

-7

by shortages of
paperboard may at least have the
that

production

paperpoard in 1947 is expected to
be the greatest in
history.
De¬

heavy-duty communi¬
cations equipment.
■
i Prices—A break in the prices of
table models is anticipated
shortly
after! the first of the year.
As
.

console sets become avail¬
able, price reductions may spread
more

table

model

combination

phonograph-radios, but it is

ex¬

pected that prices of console sets
will hold through most of the
year.

Inventories—Stocks of finished
mand, however, also is expected to ralios in the hands of
manufac¬
reach new peaks and it is
doubtful turers are relatively low.
Parts
if
enough
paperboard
will' be inventories are
unbalanced, with
.

made

available to fill total needs

in 1947.'

•

Prices—One paper executive re¬
ports that "slightly higher prices
may be expected over the next 90
days
due
to
increased
wages,

parts in ample supply while
shortage exists in such items as
cabinets, speakers, coils, tubes and
variable
condensers.
Supply of
tubes is expected to catch
up with
some

demand

first

quarter

1947.

transportation costs, etc., and there Some dealers
report sizable
is little
opportunity for the indus¬ ventories of smaller sets,

in¬

holding at regular intervals.
If you
want to preserve capital and maintain income from
securities, it is
a constant
job to remain adequately informed to decide whether to
change, shift, buy, sell or retain them; Handling an investment
account is like playing a game, of
checkers; you• can think, three
ahead

moves

but

your

opponent

may

make

imperative for you

change your next

move and disrupt all your plans.
This kind of
service takes up your time.
It costs money to handle an investment
account.
IF YOU DON'T MAKE MONEY OUT OF AN ACCOUNT
YOU WON'T PAY-MUCH ATTENTION TO IT. A
good horse is

worth his hire." Your customer

can see this if, he has it explained
For $10 commission on a hundred shares of stock
you can
be his order taker THAT'S ALL—FOR 20 YOU CAN PROBABLY
MAKE HIM TWICE WHAT IT COSTS HIM TO COMPENSATE

to him.

YOU
,

FAIRLY

FOR

Frankly, it

YOUR

seems

EFFORTS

HIS

BEHALF.

about time that the entire unlisted securities

business raised its sights and got tough on this matter of commissions'/Trime after time some customer will' call 'you on the tele¬
phone: arid ^asfcyyou. /what^yhu"think of: a, certain listed/security;/
,

whether

buy

sell,

what have you; Then you'll go. to a lot
finally /give him some good advice.
That's the end' of it^—they call.up some one who is an order taker
of

bother. arid

trouble

and turn the business

member firms in the
--but

the

number

and

over

to him.

majority of
times

This is not meant to infer that

cases are

nothing but order takers

that

similar instances, such as this are
by most unlisted dealers are by no means few.
The
present commission scale on listed business is not designed to cover
the expense involved in giving the-public real
encountered

UNLESS

investment service,
;

YOU ENJOY TREMENDOUS VOLUME.^
nature being what it is there are many

if Human

security buyers
who*would expect a broker or a dealer: to do business for
nothing
if they thought /they could get fcite to do it.
They are; also the ones
who usually get themselves in a financial
jam sooner or later.
If
it xmeans something to your customers to
obtain a real thoughtful
opinion

on the purchase or sale of a security, if
keeping them posted
they have made an investment means anything to
them, if
ending up after five or ten years have passed with good securities

after

instead of

for

headache is

important, then they should be glad to

pay

work, i; DON'T BE BASHFUL—IF YOU ARE WORTH
IT ASK FOR IT—IF YOU DON'T THINK
SO, THEN

you

your

QUIT.! i,y 77,'
Member and non-member firms should both
charge double
commissions except on orders that are handed; to
them, and that
involve no supervision, advice, reports, or service.
If an

investor;

wants

pick

mechanics
rates

Inventories—Relatively low in¬

Prices—Increased. prices

Inventories—Retailers

customer's account. The former takes little time

effort—the latter just the opposite.

strike

into operation until* the latter
part
of 1947,

or a

guidance of

SERVICE/FOR

ern -sectipnbLfurnjtur^^
< i
Prices^—Increases -ate

months before unfilled
orders can

little

gradually

Present demand for most com¬ the record reported for 1946.
Pro¬
grades greatly exceeds duction in 1946 was handicapped
supply and it will be several by shortages of raw materials and

to, make any predictions for the
second half, of the
yeai>' He adds:
y

may

mercial

"There

will

Production
is y
shortages of paper, cardboard con¬ room suites probably will
tainers and glass bottles, but this firm or tend to decline.

of men's

business
for
the
first
six
months of 1947, but is not
willing

larger

volume,

may absorb
increased costs.

increase

1947

furniture is meeting
sales
resistance.
An
increasing
trend is noted in demand for
mod¬

some

undoubtedly be featured greater
Volume
by growing emphasis on!creation
of these

By JOHN DTJTTON

are two entirely different functions performed by a broker
securities dealer; one is order taking and the other is intelligent

expected -y^This j&' hoW it works out.
y You should take a continuing intermid-year; in prices of/ bedroom and dining est in
your accounts. ^ This means following up each security and
handicapped / by room furniture. Prices for living
reviewing the status of every

skirts, sleeves, etc.), competi¬
glycerine
tion will

clothing expects

which

Living

manufacturers feel
that competitive condition's' will
become mor,e acute by

ofv

sales

eased
as
increasing supplies of
seasoned lumber become
available.

Pharmaceuticals

materials such

wool

25%

field

printing costs

Prices*—Some advances are
(le,, the war conservation order
pected, due to higher costs of
restricting the length-and fulness
sential

of Style merchandise; :.
A large,
manufacturer

Volume

run

training is

material

anticipated

months,-indicating
buyers.are, becoming; aware

of consumer

quarters

unless wages are increased.

department stores and chains' have
slackened off
appreciably. within
the last«Tew
that

months, the opinion in

higher than in| 1946;
competition will; be keen and
not being provided for a
sufficient
buyers will demand better qual¬
number of apprentices to meet de¬
ity merchandise.
There has been
mands for long-term growth of
a
good demand for quality bed¬
the industry and for normal
re¬
room and
dining room furniture,
placement of older workers.
particularly in the medium-priced
'Prices*—No

approach
However, orders from

1946 levels.

few

some

are

■.•..

Textiles

Demand

77 There

his own and
buying, selling

listed

securities

are

all

you

have

handle

the

and

delivering, present commission
probably about right. The unlisted

houses that offeri a true investment service to the smaller
investor
should certainly charge double commissions.
If everybody in the
business did this it would be a
great boon to all —• especially the
investor. You don't get something that is
any good, for nuthin'!

■

162

THE COMMERCIAL & FINANCIAL CHRONICLE

Smith, Barney & Go.

Canadian Securities
By WILLIAM

meeting of the Canadian
Exporters' Association the Dominion Trade and Commerce Minister

of the New York Stock

detailed exposition of the state of
Canadian foreign commerce.
'
£
.
.
The picture painted was quite glowing—in newsprint, pulp,
paper, lumber, wheat, base metals,<$>—-'
——
asbestos (and gypsum) and even metal, has failed to take adequate

Charles

exporter.
Moreover most of
these products are in urgent uni¬
versal demand and the volume of
available

although

supply,

mous,

exceeded

enor¬

by the world

demand. Mr. MacKinnon also
mented

com¬

briefly

the relatively

sections

minor

the

Canadian

export field, such as iron and
steel, rubber, textiles and chemi¬
cals. The subject of gold, however,
was

It is possible that the omission
deliberate
in
view
of
the

was

mounting protest in the Dominion
concerning the indifference dis¬
played by the Federal Govern¬
vital Canadian

industry. Failure to dilate on an¬
other important aspect of the Ca¬
nadian export situation—the tour¬
ist traffic—can
be
justified in
part as no precise figures can be
cited for this important export. 5
This is not the

nadian

aq industry was worthy
only of proper encouragement
forthright subsidization
such support can very well be
not

claimed for gold.

case

in regard to

gold. The statistics covering the
production and movement of the
yellow metal are more exact and

Canada has al¬

watched heri? foreign ex¬
change position with anxious at¬
tention. Despite the overall favor¬
ways

ance

for

trade doubting

not

are

Dominion's

bal¬

observers
prices

convinced—-world

basic

commodities

perhaps to suffer

severe

likely

are

decline

—the Canadian trade position vis¬
a-vis this country is ill-balanced

-r-and/ many

other justified

and

Unjustified criticisms, If, however, the foreign

ex¬

change position of a country is
adequately backed with gold the

part¬
effective

ner,

Jan.
who
i

'During the next two

1,
1947.
Kennard,

Mr.

uate

Republicans Will Make Mistakes

They will make mistakes be¬
cause they have so little inherent
understanding or respect for the

Cam¬

Uni¬

bridge

versity,

be¬

great

ated

of E. B.

ment

Charles

W. Kennard

Co.,

predecessor of Smith, Barney &
He remained with the firm,

nancial Chronicle" of Dec. 26.

in the

"Fi¬

.an

saviour

of the Canadian foreign
exchange position., Before the in¬
troduction of wartime restrictions,
gold ranked in the forefront of
the Dominion's basic industries,.
s

Now, = however, the Canadian
Government, instead of encourag¬
ing the production of the precious
-

should not be forgotten moreover
that throughout world history civ¬
ilization

and

economic

Name Now Minneapolis

discoveries
known

of gold.
deposits vof

Canada's
the
yelloW

metal

are
already sufficient ; to
permit at least the doubling of the

current

production.

But;

with

proper encouragement on the part
of the Dominion Government the

unlocking of the vast treasure box
constituted by Canada's fabulous
2

CANADIAN BONDS

million > square

Laurentian
motion.

■

mile: V

Shield

area

can

set

The

importance of this
step can be assessed not only by
the value of the -gold
produced,
but also by the results secured
following the opening up to civili¬
zation of Canada's virgin northern
empire.

GOVERNMENT
PROVINCIAL

MUNICIPAL

Grain Exchange

apolis

Exchange and

Grain

Chamber

the

Building

Commerce

progress

have followed in the path of fresh

becamg the G r a 1 n i Exchange
Building, Mipneapolis^^ Minne¬

CORPORATION

curities

was more or

se¬

less nominal.

common man.

that

CANADIAN STOCKS

which
were

were

bid at 100Vs. Internals

also dull and the long Do¬

minion

3's

remained

steady

98%-99. The second portion of $37

A. E. AMES & CO.

millions the City of Montreal fi¬

nancing

INCORPORATED

was

completed during the

week and there

TWO WALL STREET
NEW YORK 5, N. Y.

RECTOR 2*7231

NY-f-1045

renewed dis-

of strength in the golds in

an¬

D. M. S.

Hegarly V.-P.
Corp.

derwriting
t i

underestimate
nomic

the

II.

their ; credit

abandoned

the

3-1874

Presi-

Dietz,
d

are

Provincial

Corporate

dent

Rollins

and

join
C.I.T.

Toronto

Montreal

While

our

with
many
middle-of-the-road

But if

the other hand

under-estimate the determina¬

of our conserva¬

ability of out;;
It is opposition that;

strate the power and

opposition.
we

liberals cannot afford to take

lightly.

;
Full,

Packed

Future. Months

of Danger

packed

The futufe months are
believe in

free, prosperous and

democratic America. The situation

equally critical for the millions
throughout the world who are
looking to us for the proof that
personal freedom and economic
security can exist side by side iri

our*
;

modem world.

I returned

from
and
my

just before Christmas
trip to France, Germany

England. In the brief time at
disposal, it was impossible to

secure

than

series of su¬

perficial

Navy

Hegarty

the elections

o n

Department

Price

Vancouver

the contrary, the

request

reaction¬

aries of the Right, with whom I
talked looked on - America with

anticipation.

hopeful
the

November

elections

that America could be counted on

side! with them in any show-,
against the revolutionary
forces of the Left.
to

down

•

Communists

The

all

;

these

I :•

of 1946 know what

funds at their command.

They are
supported by well-organized pres¬
sure groups skilled in the art of
the

' V",: 1

are

~ '

election gave

working majority in Con¬
gress,
they
demonstrated
their
ability to confuse issues and to
influence public affairs. ;We have
had three noteworthy examples of
their power in the last six months.
a

the world.

In the next five years,

they told me hopefully, America
will surely prove the accuracy of
Karl

Marx's

belief

that

what

world is
doomed to blow itself up in a suc¬
cession
of booms and
busts of

left

the

capitalist

ever-increasing intensity.
It is the responsibility of Amer¬
ican liberals to disprove the the¬
ories

the

of the reactionaries -of both

extreme

treme Left.

Right
It is

the

and

our

ex¬

responsibil-1

ity to create new hope and con¬
fidence among
both

democratic groups
abroad, in the

at home and

ability of America to fulfill a con¬
structive and dynamic role in the

development of peace, - freedom
public support for price and rent and economic security for all peo¬
of
control, they managed last June ple* everywhere — regardless
to. wipe
out
all
e f f e c t i V e racet creed or color.
controls over inflation. Second, in
spite of a staggering public de¬ 'XtirSlK A Liberal Program
mand for good housing at decent '^■:IiViitS: broad; outline, it seems to
prices/ they successfully sabotaged me, our program should divide it¬
Wilson Wyatt's courageous effort self .into five parts:,^4^
yocDArt*
to > modernize our housing- Indus-;

First, in the face of overwhelming

London, England

them,
proved

eco¬

Adjust¬ tion pictures. They have unlimited
Depart¬

them

pamphlet,

Street, New York 5

racy.

watching us with
equal interest* They know that a
nomic and social catastrophe,
new American: depression would i
t The conservatives who swept have catastrophic results all over
deed the entire world

military leave from 1942 to 1944, they want; and

contained in

Winnipeg

sabotage of the housing program,
the all-too-successful attack
on the labor movement—demon¬

minority, and our country and in¬ countries

the
group.

will weaken

tive opponents we will doom our¬
selves to the role of an ineffective

'Incorporated

examples—the
price control, the

and

ascribing foreign

immeasurably

tion and power

Sons,
Incor¬
porated to

of which is available

14 Wall

three

These

wrecking

citizens.

Vice-Presi¬

Wood, Gundy & Co.
<•••<.

normally reasonable people as
troublemaker and radical.

■

case

CANADIAN

SECURITIES
Municipal

But in

place they; seek to substitute,

agree with us, we

Canadian Bonds

These appraisals
copy

Government

they have
political

motivation to all those who dis¬

Year-End Valuations of
.

eco¬

narrow

isolationism of the 1930's.

its

Even before

WHitehaH

social,

political forces which
have been set loose by World War

modern habit of

ment Price Adjustment ■* Board/.

Street, New York 5

of our

workers is considered by millions

and

propaganda*;,". * y'

64 Wall

diminishing incomes

idly

If we liberals fall into the easy

ac-

i t i e s,

action to assist the industry.

COMPANY

effective have been; the propa- ;

OF GIT Financial

ment Board and the War

TAYLOR, DEALE

living—are at the lowest point
And yet,

to think

they are deter¬
Cussion concerning a new issue of Mr. Hegarty served as Commander mined to get it.; They will not be
easy to dislodge in 1948.
the City in this country. Internal in the United States Naval Re¬
To a major degree they domi¬
stocks were irregular with a flur¬ serve and was a member of the nate our
press and radio and mo¬
was

—

rapidly rising cost

ticipation of possible government

seem

Th6y will make mistakes in
foreign affairs because they are
largely ignorant of the dynamic
new world in which we live.
They

1965;

the

self to the "postal services, public
roads and Indian affairs.

neglected although there

was some

full of danger for all of us who

millions

5's

workers

complicated
modern
economy will miraculously solve
its own problems if the Federal
government will only confine it*

Mr. Hegarty
has
resigned

Abitibi

industrial

collar groups today

white

thanks

our

nounced.

for

far

American

and

state. Some of them

The external section was generally

demand

been

impressions of-, what is
sota.iu-■9 ■ -f-' not the Roosevelt-Willkie ideal of going on* in Europe. But I found
London, Berlin and Paris better
one
world, but a narrow isolation¬
places than Connecticut in which;
ism based on increased tariff and
to sharpen my perspective on our
selfish use of our .economic power.
own country; ; /
- V /'
The actions of our opposition
;
I was disturbed to find that
for the most part will not flow
mOst people with whom I talked*
from evil motives or from any de¬
regardless of their personal po¬
D. M. S. Hegarty has joined sire to establish; a fascist State.
litical persuasion, consider Amer¬
Commercial Investment Trust In¬ They will result largely, as j have: ica
the last stronghold of reaction;f
suggested, from narrowness, from
corporated, 1 Park Avenue, New
The liberals looked on us with
York City, as Vice-President and ignorance, from the easy ration¬
fear and foreboding; doubtful of
alization. that what seems good for
Will be asso¬
our
ability to maintain success¬
the fortunate few must inevitably
ciated with its
fully full employment and a dy¬
securities un¬
benefit; the many.
namic jsodal; and political democ-^;

ArthurI O.

During the week activity in

the

It results

They will also make mistakes
here at home because they fail
several short govern¬
ment assignments, until Septem¬ to understand the workings of our
domestic economy. They have but
ber, 1944, when he joined Mellon
Securities Corp. as a Vice-Presi¬ little appreciation of the functions
of wages,
prices, profits and taxes
dent. In February, 1946, Mt. Ken¬
in maintaining full employment
nard resigned from Mellon Secur¬
or full production.
Many of them
ities Corp. to return to the buying
honestly believe fhat democratic
Department of Smith, Barney & economic planning represents a
Co. His admission to the firm was long step towards the totalitarian

and

The

profits since 1939
greater than the
increase in wages. The real wages i
have

except for

easily obtainable than for
any other commodity. Neither can
it be said that gold is not an im¬
of the production of gold is as
portant item in the Canadian econ¬
high as anywhere else in the
omy. It is a matter of recent his¬
Effective Jan. 1, the name of the
tory that at the outbreak of war, world, it is inconceivable that the
before the operation of the Hyde Canadian authorities can ignore Chamber of Commerce of Minne¬
much longer this vital problem. It apolis was changed to the Minne¬
Park Agreement,
gold was the
more

thinking

Co.

previously reported

depression remains firm, and
unsettled period is the only
universally accepted; medium of
exchange.* / \
In view of the fact that the Ca¬
nadian potential for the expansion

evil

largely from ignorance, from lack
of
imagination, /from a lack of
feeling of the hopes and fears of

depart¬

Smith

industrial history.

increase in net

gandists of our conservative op¬
position that any labor leader who
raises his voice to protest the rap-;

from

from arrogance.

with the buyg

American

in the last several years.

our

situation is clear and undeniable.
The price of gold through boom
in

masses

or even

at prices the

does not stem

De¬

1934,

cember,

million; and

a year

people.
For
the most part this lack of respect

associ¬

came

they

years

mistakes, and for
many different: reasons.:
.'/•£■.

England
a grad¬

build

and

quarter homes

conserva¬

will make many

born

was

and is

ever

but also of

try

majority of our people can afford.
tive-reactionary Republican lead¬
Third, they have launched a
ership is really in the saddle. Our highly successful campaign of dis¬
confusion - against
political,
economic
and
social tortion / and
destiny for the next two years at American labor. Profits this year
least is largely in their hands.
will be the biggest, after taxes, in

.of

general

dollar.

able state of the

coldly ignored.

ment towards this

teps to offset the effects of the
sharp blow inflicted on the indus¬
try by the revaluation of the Ca¬

Today, however, the

Exchange,

admission

almost every turn-—at least in

the field of domestic affairs.

W.^V • '

Kennard

ing

the

announced

the Hon. J. A. MacKinnon gave a

fish—Canada is the world's lead

(Continued from page 139)
at

Smith, Barney & Co., 14 Wall
Street, New York City, members

j. McKAY

In his recent address before

Program Against Reaction

Admits Chas. Kennard

Gold has indeed become the Cinderella industry in the Canadian
economy.

Thursday, January 9, 1947

...m,

Volume' 165

Number 4558

sibility for the

THE

COMMERCIAL & FINANCIAL CHRONICLE

163

next two years ex-'

and political program, for which must
make it crystal clear that
belongs—on the we have
fought since 1932.
there is no place in the American
Republican Party leadership. We
Throughout American history, liberal movement for those who
must bring home to
every family liberals
have;-pursued two basic would
-

lish

liberal

cratic

control of the Demo¬

JL+

e hard Poetical fact

•

ideals.

The first was the concept
personal freedom fathered by
Thomas Jefferson and expressed
in the Bill of Rights of 1791.
The

p/rlv to Up- Z,the Republican
Party toS maintain good jobs'at

u
^a£es> t° solve the problems
housing and scarcity, to protect

According

big stick,

There

are

enormous

American life that

forces

both pro¬

are

est conflict of all time. There

gressive and non-Communist. It
is these .democratic
groups and in¬
dividuals that /must be brought together; into/'the fullest political

second- was the concept of eco¬
aS3inst; sudden gluts nomic
democracy which goes, back
and price
depressions, to keep our iilto
th^ beginning otbur history/
economy running ph a high level
arid: 'Aw h: i c h '•/ Was Z formulated
graphically by/Franklin Roosevelt partnershipZ/jbased on a common
protect our minority g ro li p's
in his'Economic Bill of Rights of (X>nvictiori/triat freedom and plan¬
against exploitation, to guard our
ning are' iirit/only not- incompat¬

SL?rofpe"-■v

interest, fo develop
ot

V!In spite

•

atmosphere

pf-tbe efforts

son, jJackson,

international peace, and under¬

ible, buL/m/the long

of Jeffer¬

arable..

Lincoln, Wilson and

£.*$$$£ /

■

•

they

Communism

and

the

Without

provide

cratic

are wrong.
a

It is

•/•-

program

and

ity

for

every-day

people

success

this

failure

alternative

a pro¬

way

down

always has when

ial

every¬

Over

where.

//Our
viding

our

commentators, columnists, editor¬
writers, economists, financial
editors, market
analysts,
pam¬
phleteers, the ism boys, etc., etc.,
must be smacking their lips.

demo¬

action—dynamic, politically

practical—a program designed to
provide freedom as well as secur¬

...

confronted with vital issues. Radio

task

our

doubt, the so-called

influence

during the next year or two.
The mercury in the Congressional
barometer Will likely bounce up

It is the responsibility of Amer¬
ican liberals to prove that the ex¬
tremists

have

_ife

because

"Labor Question" will have
found

one

'■*'

properly appraise each

other's function.

Capitalism

narrow

are

earned to

are

say,

other.'

the

insep¬

run,

•""/////'■/'/•/

Every effective liberal leader
Roosevelt, the fight for personal
standing between the Allies with
has also been an effective
poli¬
freedolri/'the right, of all our peo¬
whom we fought side by • side dn
ple regardless/of race, creed and tician—Jefferson, Jackson, Lincoln
the war against
Fascism.;]^'Ztf/V/•/
and Roosevelt. And yet when it
color, to speak, think arid; vote as
_.:I' do not mean to' absolve the
comes to
the/down-to-earth prob¬
Democratier minority of the re¬ th^y/see fit, .has "riot been wholly lems of
practical politics many
won./
•/';:/;/?;//»'
sponsibility -for maintaining
liberals /are / inclined
a
to
/ Iri spite bf Mr Roosevelt's ex¬
wrap

;

hand

>€^pipyin^Wt;ito'

natural resources from
predatory

alternatives,

narrow

all!

because union rep-,
appeasers.
Not

resentatives

the

reactionary
extremists of both the Right and
the Left, the world must eventu¬
ally choose up sides for the great¬

compromise the principles
of individual
liberty.

the "financial giants" wield

cause

party in 1948.

what?

this

writer

something as
simple as making a dot or a dash,
or hitting the right
key on a Tele¬
type:
seems

in pro¬
will de¬

over

termine
not only the" shape - of
Right traordinary efforts iarid the'
pas-; themselves/? up- in high-sounding our own country but the shape of
the country is
watching to sage of much. liberal
principles and leave the battle the world as a whole.
HOW
CAN' WE
CONDUCT
legislation,
see how the
Democratic members the
OURSELVES
AS
EMPLOYERS
right of all of our workers to ground to4he/men with the cigars
America today is in control of
arid the ;derby hats.
AND EMPLOYEES WITHIN THE
niil ■ ^enate vote on the issue of jobs/ at good/wages, the right of
half the

Vigorous liberal opposition.
now

farmers and business

our

men

productive

during the fair return on their efforts, the
wev bberals must right of "every citizen to a decent

education, still "remain, asyfarras
millions of/our people are con/
cerried; only a 'series of inspiring
phrases.' " "< / ■
//:'//;• //-

groups which go to make
up: our
great country, /Wemust- convince
,

groUp^an

©Wvpeople that

no one
hope to prosper unless all
groups
prosper, and that only through the

development

We liberals cannot afford to re¬
lax for one minute in. our fight to

constantly in¬

these

translate

creasing

action. If

expect to regain the
ground we /shall have lost by 1948

twin; American

purchasing power of our ideals into a
itying reality tori :all
factory workers, our white collar of
we must elect a liberal President
our people;
workers, our farmers, and all our
and a
liberal Congress. t0 accomFifth, in foreign affairs we must
millions^ of- little
people, can we support a program/that is gener¬ plish this^we; must work through
,.

nppe to achieve sustained full em¬
ployment; and full productiori

the

BOUNDS OF TRUE HUMAN RE¬

LATIONSHIP?

Work to develop greater;
economic
home, .good health; and ' a decent
understanding
among
all- - the
.

power

Party entire world. What we do or fail
to do eventually must affect
every
Jri;: parficul^i: we should: not
harbor any illusions about a third human being, on earth. Franklin
Roosevelt, who had earned the
p^rty. The legal and organization¬
respect and affection of, all the
al obstacles in -the
way of an ef¬
world's
people, is gone. In his
fective third party movement are
place we have the reactionary tubtoo great. The Democratic
party
with all its .faults is our most ef¬ thumping leadership of the Re¬
fective instrument for political publican party.
No Illusions About a Third

Pycfy day

When

considers

one

demagogues have for
ed to

this industry

reactionism,

the

point¬

the citadel

the

brokerage houses

that

years

partners

and their

tele¬

graphers could easily suggest that
sometimes

The peoples of Asia, India and
the Middle East, South America,

the

answer

mo¬

mentous questions is found in

un¬

expected places.

and Europe, as well as the tens of
millions who fought and worked
for the New Deal in the
1930's,

Leon Graham Now With

are
the Democratic partywatching anxiously to see
machinery.
practical; that is based
what kind of leadership we Amer¬ Bruns, Nordeman & Co.
on
the principles, of the United In the next two years we must re¬
ican liberals may provide in the
v>We must educate all of our peo- Nations and
turn the Democratic party to the
Leon W. Graham has become
pne/World, and which
Jfact that reasonable
is firm, indeed Unyielding,'in de¬ ideals and objectives of Jefferson, years, immediately ahead.
associated with Bruns, Nordeman
r. profits are a source of
strength in fense'Of thar
By a demonstration of hard- &
principle/// ' : Jackson, - Wilson and Roosevelt.
our economic
Co., members of the New York
system, but that ex¬ S3 Incline with/this
This will not be easy.
headed unity during the months to
program we
orbitant profits hoarded
in cor¬ must resist
/ Wri; cannot blink • the fact that come, by a vigorous acceptance Stock Exchange, in charge of the
any temptation to play
porate reserves can become the
new business department in their
power politics pr to seek to impose the party of Roosevelt is also the of the issues of the day, we can
•
our "own ideology - on any other party- of Bilbo and
Jm. econom« catastrophe.
hope,
and 60 Beaver Street office. Mr. Gra-»
Rankin/; But provide - inspiration,
; ,;AThird. we - must attack the monations. At the same time we 'must the fact remains that we have no leadership to the cause of ecot
ham was formerly with Joseph■■i
nopohsts-and the scarcity thinkers
nomic and political
throw our full weight against ag¬
democracy all
practical alterriative. All our r efthai
& Co. and Carl M. Loeb,
over
the world. Ours is a great
al}1 0UJ fQrce and with no gression—from whatever source it
holds barred, In
many areas of may come. .Unilateral action on
and Zdyridteic tradition. ~We must Roades &
our economy
today, free competi¬ the part of any nation is no longer thrown into the struggle to estab¬ not let it down.

ous

and yet

U3,?

tion

has

all.

but/disappeared.

consistent

with

the

^
; ar® " rigged
signedvto
j

-at levels de-

provide high profits

'lmi*ed

amount

production

of world "peace,

preservation

y!4.i

/
/Above all,we must understand
that our foremost responsibility in

•

^eia.h??day/ The
I f/

record for
generations has

proved that effective support for
vigorous

program
of monopoly
must come from liberal

their

economies

cerely

the

•

assume
that all big business is
Liberals Must Find Basis
ating disputes.;
necessarily bad. A majority of the
for Agreement
3. Far wider use of
American people will
voluntary ar¬
agree that
Sixth, we. liberals must develop
bitration without re $ or t to
many business interests, both big
some hard practical political sense.
and small, are
strikes; inclurion of no-strike,
grasping, greedy The conservative forces in
their
no-ldckout clauses in contracts.
and wholly
irresponsible. But the
opposition to change find it rel¬ 4.
majority of our people want to
Employment
of
"emergency
atively easy to reach agreement.
see legitimate business
boards of inquiry,"
(a new
encouraged Liberals who favor
evolutionary
and strengthened.
name
for fact-finding boards)
They do not democratic
change often destroy
want to see the
to
hold hearings
baby thrown out their effectiveness
and make
by bitter fights
with the bath water. If we
public recommendations where
expect
over just what kind of change we ;/ "normal mediation efforts have
to win friends and influence
•'

elec¬

tions,

we must not hurl

our

institutions.

We -Must also maintain our ob¬
jectivity on the subject of labor.
Organized labor today is, as it al¬
ways has been, our most effective
instrument for the improvement
.

the lot

of those who work for

wages—which means four out of
every five of us. Organized labor
is our most effective source
of

lib¬
eral political
strength.
Most of
the reforms and social
advances of
the mst 100
years were achieved

by labor
elements

efforts. And yet, some
in
labor today are de¬

structive and undemocratic." If we
expect to achieve the respect of
themiUions we must not hesitate
to,face up to this fact '/'//////V

The

British

Labor

Party

has

failed."
■

If we

to have any chance of
must find ways and

are

success

s"--

:-'-v

The

Mui?

purport

these

conclu¬

contract

had to write

would be

tual respect,
each other's

our

best interests

But

have

must

number

lessons

For 44 years stock and commod¬

of them is that a ity brokers using private wire sys¬
tems and The Commercial Tele¬
progressive
democratic program
graphers' Union, AFL, represent¬
can
be
presented

admirably

our

agreements

attested

work

unequivocal/'

employer-employee relationship.

convincingly

Too
form
which
erate

often

been

' •

the

made

•

When

appeal
in

unity tion

effort

artificial front through
undemocratic
forces op¬

exploit

the

best

inten¬

tions pf honest men of
good will.
We must be prepared to defend

forward , looking economic^ social

their

propagate their views through
own

organizations.

But

the

consider

that

eight

gentlemen

propose as at least

edy

for

por¬

recommendation

the

in
a

the

Washington
partial

troublous

rem¬

"Labor

all

the

wire

houses

the

As
take

considerable

fact,

it would

statistical

re¬

search to determine just when the
last grievance

would

case

also have to

occurred.
go

to the

tions-strike

above, and that the other portion

resorted to.

has

never

been needed

wan¬

This situation

lock-out

was

last

the

district

school

Resolution

issue?

duly
day of
i

was

10th

denominations

the

are

the

follows:

Said

bonds numbered from

eighty inclusive. They
February 1, 1947. 160 of

dated

bonds

shall

denominations

Said

bonds shall mature according to the
following schedule. Four bonds of $2,000.00

"each

shall

bonds
shall

1948.

December

for

and

bonds

shall

observed

the anniversaries
1st,
retired

are

four

mature

December

period

and

shall

bond of $1,750.00
1/ 1948. The same

retirement

1st

$17,500.00

1..1948,

each

One

following years

June

year

June

$2,000.00

mature

in all
of

mature

December

that';

twenty; (20»

each
yearsit!

Anyone desiring to do so may present a
or bids for said bonds bearing a
defi-'
nite rate of interest different than specif
fied.in the advertisement, providing, howeve/ that where a fractional interest rate
bid

•

bid, such fractions
of one percent

shall

(Vi)

thereof.

Said

bonds

(1%),
will

one-fourth

multiples

sold

the

highest bidder at the time and place above
mentioned at not less than par and acr
crued
interest.
Bids may be made upon
all
All

any. number of bonds in this issue.
bids must state the number of bonds

bid

for

drawn

Education
School

gross

interest

must

The

the

and

accrued

District

Board

District

favor

the
the

certified

the

Board

Township
sum

Education

reserves

Jackson
in

bid and
delivery. All

amount of

date

accompanied

School

reject

and all bids.

any
•

Local

$3,500.00.

said

privilege

•

By order of the Board of Education
of

Jackson

District,

Township Local School
Stark County, Ohio
-w
'

Bids should be sealed and endorsed "Bids
for Jackson Township School Bonds".
•
•

t»

r»

HOVERLAND, Clerk,
Nn

TVAossillnn

accord¬
of

Board

hundred

one

said

and

respectively

docs not exist he-

said

which

bonds

shall

chives to ascertain when arbitra¬

the happy relationship mentioned

Issued

$2,000.00 each, and 20 of said bonds shall
be
in
denominations^ of
$1,750.00
each,.

ar¬

Problem," has formed the base for

and

improving

under

the Board
1946.

mature

check

matter

bonds,

Said

and

Resolution

by
December,

bids

United States.

purpose

Ohio,

schedule

only by those whose devotion to
of human freedom is

one

the. values

has

said

in¬

by the
fact that one union official, work¬
ing leisurely for a maximum of
ing both Morse and Teletype tele¬ 30 days a year, could handle all of
graphers, have enjoyed a happy the grievances accumulating from

learn, and

with

passed

When we put our feet under the
table to negotiate a contract, there

that

the

Education

tertwined.

proof

constructing and equip¬
fireproof high school building:

bonds shall be serial

for

Code

re¬

are

Threes

($350,000.00)"

1, 1947 and bear-;
exceed 4% per an¬

semi-annually

new

and

straint in not taking advantage of
each other and a thorough realiza¬
tion that

not

ance

one: mu¬

fine

January
27,
1947,
bonds of said school"

purpose of

one

payable

and

understanding of

present fireproof high school building, and
authority of the Laws of Ohio and
of Sections 2293-1 et. seq. of the General

formula, it

problems,

the'

School'

under

inviolate-

simple

very

of Educa¬

Local

aggregate amount of

ping

is old stuff with us.

ness

and

that we are there for the purpose
extremely intensely'gratifying to many part¬
ners connected with "Wire houses" of doing as much as we can for the
careful that the unity we
forge
in the broker
is a unity based on
business, as well as employees. And, it is all amicably
principles, on
achieved in a matter of hours. The
democratic principles. We liberals to their telegraphers.

ica.

the right of American Communists

lock-outs

received

dated February

interest

num,

of unifying the

learned this lesson the
h^rd way
Fourth, we must hold fast to the
-

tary

sions, reported in page one Wash¬ isn't the slightest glint of mistrust
potentially
in anyone's eye.
We both know
powerful liberal forces in Amer¬ ington "News," must have been
means

ing

relationship operates
most friendly basis. Volun¬
arbitration, no strikes, no

.should have.

har¬

poons indiscriminately at business

the

for the

time.

medi¬

noon,

purchase
in

Dollars,

•

conciliators

the Board

Township

Hundred and Fifty Thousand

ernment

o'clock

the

district

known and qualified men as
principles of One
The
World, aid will not be withheld
Commercial
Telegraphrsconciliators; in major industrial
groups.
from any peaceful nation or group
Union, AFL, today has contractual
disputes.
But let me offer one word of of nations .>
relations with a majority of brok¬
solely because their 2. Creation of 1 a bo r
-industry
warning.
In our attacks on mo- way of life may differ from our
ers using private wire communi¬
panels to work along with gov¬
nopolistic thinking, we must not own.
cations. The
control

twelvefor

agreed to

and

will

Clerk of

District, Stark County, Ohio, O. C. Hoverland, R, D. No. 4, Massillon, Ohio, until

on nearly the top level pencil they have been
looking for
to raise their standard of living to by management and labor, are: ' these
many
years
has reposed
a decent level. If we believe sin¬
snugly behind their ears all the
1; Designation of na tiona 11

rehabilitate

proposals

of the

of 4Jackson

tion

Relationship

Sealed
office

can be sure that Republican world affairs is to extend the good
(Continued from page 141)
leaders,
ip^spite of their blind neighbor policy throughout the
italistie system could not exist; an der whether we in this
worship, of the ideal of free com- world. At this time
when such a
industry
Petition will have but little inter- large part of the world has been industry ..that continues to fulfill have been hiding our light under
its mission; despite the efforts to a
bushel/ or whether some top
f|xu nr,the /;Vrbing oi mohopoly. prostrated by war, this means that
If the Republicans are left to their
destroy it; is entitled to that riiuch: management and labor, executives
we must extend the helping hand
own devices the monopolists will to all
Briefly, the points reportedly have suddenly discovered that the
peoples in their efforts to

Notice of the Sale of Bonds

A Model Labor

Ohio

Thursday, January

THE COMMERCIAL & FINANCIAL CHRONICLE

164

9, 1947

terferes with preparation for fu¬
a full employment
The labor leader is not ture consumption— namely the
only interested in an adequate making of more capital goods. The
volume of jobs, he wants more low interest rate also stimulates
jobs than. there are people to fill the demand side for more "dur¬
them, i; Furthermore,
he is not able" goods but it does not help
satisfied with the remuneration the supply side in the short run at
movement for

The ESconomic Outlook lor 1947
tr»—i';

tions?

(Continued front first page)
eighth respectively.
It underesti¬
mated
physical
production by
If

the

busi¬

How then can we

predict the behavior of 100 mil¬
lion people through their prospec¬
tive billions of transactions?
Socalled economic forces work them¬
selves
out through human
de¬

Prophets Are Made

How

the

predict

even

associate!

ness

not stand up too

well under scrut¬
Indeed, considering the sell¬
1946, it is surpris¬
ing that prices were not higher,
and
that
corporate net profits
iny.

ers' market of

one's best friend, or closest

previous year, this
would have a very salutary effect
on all "dopesters."
of

casts

fewer

economic behavior of one's spouse,

all reexamined the fore¬

involve more

dollars? : "
One
cannot

about 10% for 1946.:

Will each ' transaction on

the average

program.

were a

tional

income

All

than* in

this

interest rate has

too

that we

recent

mal

standards

war

relatives

may

other. I do
understand this re¬
lationship clearly, but it does seem
fice holders whose only interest
that a flexible interest rate, an
is dissension and power. The la¬
equilibrating interest rate, is an
bor leader faces competition from
indispensable part of. a properly
rival
labor unions.
He always

,
been

In economics

good thing.

Nor

over-publicity has

psychological

forces

domi-

may

believes that
a depression is coming some time
in the future, but most of them
are a little uncertain as to just
when this very prospect of denate.,' If every, one

pression'may set in motion com-}

did

to the
,

reflect

consumer

full costs

the

because part VIA
wvvuwuv
t of

the price was hidden iii consumer
r>aid

rnll.hark

for

f°"baC?t did not aflow for the
Q«ot ^^for the
*

buv

house

artificial

heavilv

being

controls

rgnt

help prevent
excesses
of both boom and depression.
It

Chicago

would

justify

nomic

Club holding

this

the

Eco¬

meetings of

type!

Every
economic situation is
unique—economic history never
quite repeats itself.
Nearly al¬
ways some event or events, which
could not have been foretold, up¬

one's

set

appraisal

economic

trends

Our voluntary
known

economic system,

individual private en-

terprise, has enormous vigor and
durability partly because it rests
on such a broad base of millions

of
■

owned by even more

ments

mil¬

Yet it is sensitive,

lions of people.
v

establish-

business

separate

fluid and volatile.
Who

can

predict the decisions,
to contract, of these

to expand or

establish¬

individual

millions

ments.

They

are

autonomous

units; yet the decisions of most of
them are affected by the decisions
of the others. These decisions in
turn

are

sions

governed
than

by the

deci¬

million

100

Every day some 100
million buying and selling

consumers.

to 200

transactions
you
ness

carried

are

on.

When

ask for a prediction of busi¬
for 1947 you ask: How will

these, millions o{ people behave?
Will there be
.

tirpe

interval

greater
a

between

from

tories

consumer,

the

producer

and with

large

the

quan¬

tity of consumer durables to tide
us over the war period.
Natu¬

with the -passage of time,

rally,

the scarcities of commodities made

themselves
done

1945

felt

sures were

and

the

had

would

war

have

ended

later. The pres¬
building up all during

year

the war, and after the war they
made themselves felt more forc-

ibly.

lesser

increases

For

all

these

reasons,

encomiums heaped

the

upon

businessmen since V-J Day with

regard to prices are scarcely de¬
served.

The notion that we did a

good job of price control during
the

war

and

bad job since does

th(s

doubted

see:

"So

You

Be-

dur-

become

may

habit- not only; in output} but - also

justments ; without'; a 1947 recess■,
sion. This is our hope.
The technical position for capi¬
It seems perfectly clear that we tal
goods and consumers' durable
cannot have full employment and
goods expansion has never been
price stability at the same time. better. Shortages abound every¬
This is a problem which so-called where. The whole world is capi-

likely to precipitate depression.

ahead.

Wm. Beyeridge is
of the
w"ad?u nnTJT; 1—• Home ownership has Inemployment" spokesmen
hfrd cwJ Q4n
i? ma
it clearly.
. third s^ce 1940. This^ means a
f; | major shift in buying from prer
one

few "full

who has,seen
W,.

not
to

„

Senerahzations do

mean

that

the probable ride

higher and higher price levels
attended by interven-

will not be

ing depressions
ment and prices,

war

conditions, partly because

this

ownership will absorb
for mortgage payments

increased

income
axici partly because

of the necessity
of both employ-} 0f refurnishing these homes.

of
But the long run
For the foregoing reasons we
loans trend seems to be for higher are
likely to have an increase in
have been increasing rapidly. Bor¬
prices, and 1947 may not be an what may be called frictional,
rowings today stand fully 50% exception.
though somewhat enduring unem¬
over prewar and have increased
ployment before the year is out,
Shortage
Real Capital over $3 billion since VrrJ Day and
It will not be too easy in many
are. increasing,Consumer- credit
?;;Another factor making for ris¬ communities to shift workers from
by October wa^ jaboye; the. 1929 ing prices, especially in the face the soft goods lines to the}durlevel and only about 10% below of
the foregoing points, is the
the. liquidity

spite

American

business]

the prewar

peak. Instalment cred?-

bank

nearly 75% in the first
"5. months after, V-J Day.

ii^construc-

it jumped

Years ago economists thought
they detected a fairly close longrun

relation belween the amount

of money in use

and the general

price level. This was given the
name, " "the
quantity theory of
money." Excluding time deposits
and

government

bonds, we have

much
deposits in

today about three times as

and

money

circulation

demand

Of course,

prewar.

larger volume of business
now, we need more counters; but
in terms of the money supply

doing

long-run

further

upward

price

is indicated. If we include
that portion of time deposits and
government bonds which may be
viewed by owners as near-money,
the tendency for prices to rise is

pressure

facilltfesf S&gM ■ try Iabor-increase its output by
Tbe auto™bile ind-

productive

may

capital j building,
designed to produce a na¬

the past year. This
adversely some
tional income at prewar prices of other price lines. Steel shortages
about $90 billion.: Total invest¬ will continue. Inter-industry com¬
ment in manufacturing, distribu¬
petition for the consumers' dollar
tion and the service trades in line will increase so that the cost of
after line is still not geared to a living index is likely to have less
60-million-jobs economy. We seem upward pressure upon it this year
to be in the position of the Opera than in 1946.
,
Company which sold more tickets
Inventories
than it had seats and then to cor¬
rect the imbalance more' tickets
The position of inventories is
were sold,
The high and constant generally Regarded as crucial in
raising of wages and subsequently governing future leyels;j>f pro-*
Inventories have accu¬
prices, puts ever more pressure duction.
mulated during 1946 at unprece¬
on many of our productive facil¬
ities.
*
'
'
*
dented rates. Yet relative to sales
In some mining operations we they are still below prewar rela¬
Furthermore, the in¬
have passed the stage of diminish¬ tionships.
ing returns in spite of the march crease is due in part to the price
wartime

the

were

50 to 75% over

too

will

affect

of technology so

that we will get

minerals at steadily higher
real costs. Plastics and other sub¬
our

stitutes may
for the most

obviate this tendency
part—but of this we

cannot be sure.

rate
in some
obscure way appears to be inter¬
fering
with
capital formation.
This situation makes it difficult
The

artificially low interest

coupled with high wages,

may also be
of its unbal-.
anced nature. Reconversion is not
yet complete. A considerable por¬
tion of the increase is due to de¬
layed delivery because of the lack
of essential components.
Thus irt
mid-October, in the case of one
Chicago plant, in the final posi¬
rise,

The

increase

deceptive because

tion in the fitting
wards

of 90

stalls, stood up¬

coaches—

passenger

representing almost $7.5 million
The Labor Movement and
in inventory.
Small components
other resources
the Price Level ■■ V
factories, commercial outlets and were missing, delaying delivery.
Equally scandalous is the gov¬ housing. The pressure for. im¬ How general this situation is we
ernment's complete misreading of mediate consumption no doubt in- do not know. But there is reason
to believe that except for furs, ^
the
implications of * the
labor
4 For a more extended analysis of this
some jewelry and some soft goods
2 See:'
Business
Action
Chamber
of problem see the writer's "Economics, of lines the inventory position of
to

divert

manpower and
to the building of

enough

Commerce

USA,

Dec.

23,

1946,

for an

of- the
Nathan-CIO
Report released December, 1946.
v
3 See:
"Maintaining Purchasing
Power
in the Transition," Chamber of Commerce
analysis

, „

American

higher price levels and under con¬
ditions of excess money is less

adverse

got

volumes of these goods
but at poorer values in many lines
than ever in recent history.
The
year 1947 is likely to see a shift
greater

already have become a habit. prices is likely to -be^ struck in
our perfectly enormous sup¬
1947 and the adjustment is already
ply of money and near-money, well under way. If this readjust¬
this constant upward pressure on mentcan be made, first here and
the
wage
level
may
steadily then there, a little chunk a a time,
translate itself into higher and we may make the necessary ad¬

tbe period

dollar for

the

in which the consumer

With

the holdings ^amount
to
about $222 billions. All this indi¬
cates a further decline in the val¬
of

year

may

today

in history

t?7ard Vbe"er balance of

Furthermore,
average
hourly
earnings of factory workers from
1939 to V-J Day rose by 58%,
further reinforced.
against a cost of living index rise
How
government
economists
of only 30%. Yet a study by the
could envisage postwar deflation
Department of Labor indicates
in the face of the, foregoing has
that efficiency rose little, if at all,
always been a mystery.3 They
during the war in civilian produc¬
seemed to be victims of a "quan¬
tion, so that by the time of V-J
tity theory in reverse." In short,
Day costs of production in many
there is reason to believe that we
lines were already pushing heavi¬
have not yet adjusted- the cost
ly against prices. Little wonder
and price structure fully to our
that prices burst through the fixed
new money supply condition.
ceilings since V-J Day.

^ve in Rent control," by v.- o. .watts,
Foundation for Economic Education, Irv
transact, ington, n. y., 1946.\ y • •/;

money

Durables

1946 may go down
a soft-goods year, a

jables production; One reason peo-

$65 billion of liquid assets held by
businesses and individuals in 1939,

pensatory reactions and forces
- Furthermore, the alleged sucwhich will prevent it! Whereas, cess of . wartime price controls was
if every one felt sure that depresdeceptive in another respect,
sion were coming next month or [ When the OPA fixed a price it
next
spring, then this current! generally fixed the price at the
then equilibrium level. Since this
feeling would probably be enough
was the case, there would not be
to cause, a depression at that time,
if not earlier. Commitments would expected, of course, to be much
upward price pressure for some
: be cancelled or shelved and new
month or even years.
Further¬
investment' plans would be put
into
abeyance ' and
inventories more, we at times forget that 1941
was a high production year, nearly
} would be allowed to tun down.
50% better than 1939 according
:
If this analyst is sound, it makes
to the Federal Reserve Bank in¬
a strong case for intelligent dopdex.
Thus we entered the war
;; ing, estimating and weighing. : It
with better than average inven¬
should
the

as^

viewed

This matter is mentioned at this l
ilnti because of its
point Wcause of its relationship pie have been paying 80 cents for
to the general price level, the val¬
a pound of steafc is because they
ue of money for the future.; An¬
could ' not buy automobiles and
nual demands for 15 to 30% wage other durables.
A better balance

Sir
£*?»*! ar

re-

f®J*
#£,?
v.15 J
sponsible for the housing scarci„

which

Shift

In any case,

derstand.*

Doping

profess to

functioning free economy.

people have not yet begun to un¬

No doubt this

the

which

momentum

K»inrf

not

"competes" with the employer for
the; workers'* favor. ; The labor
movement today probably is more
political, in the strict sense of the
word, than at any time, or than
any other movement.
The labor
movement has a dynamism and

consumption, on the

unions particularly from

Communist-minded would-be of¬

ast October of 26%.
on him.
,;V |
deceptive.
New "normal" rela¬
The cost-of-living index from
Entirely apart frpm the wartime
tionships are inevitable.
prediction that war's end would 1939 to' V-J Day rose by about
Currency in circulation now
be followed by collapse, the ow** 1 30% and from jf.V-J Day to last
gen/o
aixu xa
V "*U JLJiiy
IU 1HSI
stands at about $29 billion com¬
eral opinion of the Washington ' October it rose another 15%. Conpared with $7.5 billion in 1939
dopesters has been, at least since sidering the time interval, prices
and only about $5 billion in boom
last June, that the "next six to did rise more rapidly after V-J
that,
"
'••'J- T*v_
* V*
A...-1 •
year 1929. Demand deposits stand
nine months" will bring a col¬ Day.
at $82 billion in contrast to $28
But the wartime index was de¬
lapse. The public press has taken
billion in 1939 and only $23 bil¬
up the same refrain.
If depres¬ ceptive.
It did not cover black
lion in 1929. Similarly time de¬
sion comes this year, it will be markets; it ignored the deteriora¬
the best advertised depression in tion in quality; it did not make posits are up more than 100% oyer
prewar.
Individuals and business
history!
adequate allowances for the dis¬
hold some $83 billion of govern¬
appearance of low-priced items.
Compensatory Reactions
ment bonds, a goodly portion of
w

nor¬

would-be office holders, and

in many

ing

both from

union

within his

price rises. Although here
predict a collapse
we
must distinguish between a
or
a
boom you are bound to be
• v"^ general price rise all along the
right if you repeat the prediction cisions;
line and the price boosts of in¬
long enough.
Most of the prog"Success" of Wartime Price
dividual commodities in specific
nosticators who at one time or
Control—Deceptive
sectors of the economy.
A gen¬
another have been credited with
Most of us are interested in the eral price rise means the value of
prophetic foresight simply turn
the dollar is declining; specific
out to be right finally—because general level of business and in
commodity price changes may
they kept up the same refrain. general price levels for the months
mean merely disequilibrium
be¬
Shortly after V-J Day one of 'the ahead. Our consciousness; of the
tween supply and demand in spe¬
chief Washington dopesters said: price increases of the last few
cific sectors of the economy—ag¬
"A recession will come within the months makes us wonder whether
riculture for "example.
next six to nine months." I saw the inflationary forces have spent
Whether prices, are "high" or
We
are:: constantly
him about once a month there¬ themselves.
old that "We did a fine job of "low," furthermore, is, after all,
after and he regularly repeated
the same refrain—the last time controlling prices during the war, partly a matter of custom and
habit. Any price to which we are
just one month ago.
Sooner or and a poor job since V-J Day.'
habituated becomes a "normal"
later he will be right!
But the This conclusion may be deceptive.
From 1939 to V-J Day (August price. We should expect a major
interesting thing is that although
1945) wholesale commodity prices war covering half of a decade to
very sophisticated in every other
lead to many enduring structural
rose about 37%, as against a fur¬
way, he apparently is not aware
of the trick his own mind is play¬ ther increase * since V-J Day to price changes! Measuring by pre¬
Whether you

proportion of our energies to be
devoted to satisfying current con¬
sumption, one the one hand, and
to
capital formation or future

politician.

competition for his job

He faces

should not be too alarmed at the

always been our
for rationing the relative

device

The labor leader is a

means

the

forgotten that

least.

sign to the value of the services
of the worker.
„<*

yearsA

prosperous

We have

which the free market would as¬

smaller fraction of the na¬

errors

.of

USA,

jJuly, 1945.: -

> >? $>',»

iv }

Collective
Bargaining" - and
"Industrial
Relations—Frust-rated and Perverted."
"Commercial

Mar.

tively.

21,

1946

and1and

Reprints

Financial
Oct.

also

17,

Chronicle,"
1946,

respec¬

available from the

Chamber pf Commerce of. >USAy ,

whole is

favorable for continued

prosper*

American industry as

ity„ Yet. there

jyill, be a.rise

165': Number

Volume

4558

bankruptcies in 1947 due to
extended
the

imbalance

and

tories in

inventory

THE COMMERCIAL & FINANCIAL
CHRONICLE

gress may-have some salutary ef¬
fects on labor leaders. By strength¬

inven¬

accumula¬

bor," but the thinking citizen will
recognize that a carefully worked

ening the hand of the employers,

over

number of lines. Once

rate

plan

factor and this will be in evidence

throughout the year in

In addition to

declines

after

this

depressing

another;'

line

one

Foreign Trade

./The outlook for foreign trade
appears gobd. Yet this trade will
be unbalanced. Effective produc¬

tion Abroad is hot being res
In the past year we exported nearily. $2 for every dollar of imports.
This

imbalance

tinue and

likely

indebted

and wont

con¬

for

us—

it.f Credits

outstanding and likely to be
tended

abroad 'would

hours
of

terprise;

receive mostly scraps
in return.5 France and

tators

Germany are ruined beyond early
England, also a key fac¬
tor in world
trade, is losing part

empire and dissipating her
energies in a bootless socialization

carefully

not

What

occur.

this

country

needs is more friends of the work¬

ing man instead
a capital L).

process in the name of the com¬
mon man.

She steadily is ceasing
to get the benefits of the innumer¬
able foci of energy inherent
only

of Labor

(with
are
so¬

lution to ' the labor problem must

private enterprise economy,
although it must be admitted that

by returning ■ industrial

come

re¬

lations back to the employer and
own
workers or the latters'

less enter¬

prising than businessmen should
be. What the global effect of this

his

decadence will

from their

for the

mean

planet
;and for our foreign trade is still
obscure, but the notion that it
spells peace and prosperity is only
for the consumption of children, The United Nations and its sub¬

sidiary institutions, noble in

representatives
own

selected

freely

numbers.

The Il¬

linois Fuel Merchants" Association

here: in
one

city has made
along this line.

your own

suggestion
are others, The labor leader

There
will

denounce all such sugges¬
tions ai attempts "to
destroy! La*

con¬

The year

return of

were

the

which

government must

elimination

About

some

to find

downward
adjustment.
The
futures market for wheat- arid
other cereals suggest that further
declines are in prospect. We will
>

devote less of

our

food

resources

rehabilitation of foreign areas
In the months ahead.. The
compe¬
tition of other industries for the
consumer's dollar will help reduce
food prices still further. It is like¬
ly that in 1947 we will be a food

importing nation
as

has been the

on
case

net balance,
in the past.

This in turn will make available

foreign V exchange

to peoples of
•other lands and stimulate further
our export industries.
■

The liquid assets owned - by
farmers exceed their debts. Thus
decline in income will not create

the

hardships which followed 1920.
Furthermore, if business in gen¬

eral holds up as well as now
ap¬

probably, there will be no
catastrophic
collapse
of
farm
prices.
:
pears

Strikes
.

learned the hard way in the past
year something about the interdependencies of our economy. f;A
strike is not merely

against the

employer, it is against the com¬
munity and against workers * in
other:plants and industries. High¬
er

wages/ without corresponding
increases in production do little
good, and augment the disparities

of income of different
groups pav¬
ing the way for depression. "Softamong

employers will
still be picked
out by the labor
leaders and in time the
others
will fall into "line." In
their own
and in the
national

interest

ployers will have
sist

labor

learn

monopolists

em¬

ef¬

5 Fed.

1321,

Res.

levels

Bulletin,

unless,

December,

1946,

'
..

vented; from
strikes.

■

in the past,

doing / so

pre¬

„

tent

upon

The

looks

1947.

out

which

one man

threatens

labor;, It must

of these

postponement of the in¬

troduction of

automotive?

;

models by the

new

industry

tribute to the drop
in their

will

con¬

production

industry.,

The

Some

few

service

new

orders

trolled

are

although

downward
are

Order Situation

trend

flourish.

report

still

that

being

con¬

instances
in

new

orders

noted.

However, backlogs of
unfilled
orders
generally
are
heavy enough so that a moderate
drop in demand would not result
in

decline in production in the
first half of 1947. There is fear on
the part of some executives
that
the books may contain
a

duplicate

orders

and

that

any

general

re¬

cession

might be accompanied by
large-scale cancellations.;
.'//" :
Outlook for Material and Labor
The

outlook for availability of

labor is regarded as

favorable
in

the

than

slightly

that for materials

coming six months.; Both

8. The

most

man.;

United

the

ular

govern¬

sane

Congress

States pertinent and

a thorough
study and in¬
vestigation of the field of labor

relations, including, but not lim¬
ited to—

longer

labor

but
of

these

are

the

war

note

mizing

stoppages
putes,

supply.

views

are

that

their

predicated

supply of materials.,

optimistic

on a

limited

material

receipts exceed expectations, they

with

such

necessary

deem

may

de¬

sirable.
Sec. 3. For the
purposes of this

resolution, the committee, or any
duly
authorized
subcommittee
thereof, is authorized to hold such

hearings, to sit
times

and

act-at

such

and

sions,!

places during the ses¬
recesses,
and
adjourned

periods of the Eightieth
Congress,
to employ such clerical and
other

assistants, to require by subpoena
otherwise the attendance of
such witnesses and the production

or.',

such

correspondence, books,
documents, to admin¬
oaths, to take such tes¬

papers, and
ister such

timony, and to make such

expen¬

work

labor

dis¬

excess of 25 cents
per hundred
words. The expenses of the com¬

mittee
which

under
shall

this

not

resolution,,
$50,000,

exceed

shall be paid from the contingent

labor

sential

disputes in

industries,

es-

fund of the Senate

upon

vouchers

Committee."

; 4. Measures
!

out

together

the effects, of work stoppages approved
by the chairman of the

due

sounded by some executives who

point

legislation

eliminating
due

3. Measures to protect the
pub¬
lic interest and welfare against

becoming
caution

investigation

recommendations

becoming less

are

man-

-.•••

bringing about

y agement, for improving col- ditures, as it deems advisable. The
cost of stenographic services to
; •
lective-bargaining procedures
and practices,, and for mini¬ report such hearings shall not be

since

.,,

improving rela¬

tions between labor and

problem since workers hired

skilled.

;

2. Measured for

shortages of technicians
skilled labor are still present

even

relating to labor relations,

Serious
and

1; The administration and
oper¬
ation of existing Federal laws

and

I'p

•

can

make

looking for somd ihcithe

legislation

changing such methods

practices;>and:s vV;

Sec. 2; The committee shall
re¬
port to the Senate at the earliest
practicable date the results of its

the basis of which

and sensible:

desirability

and preserving
equality in the
bargaining positions of man¬
agement and labor.

ma¬

Resolved, that the Senate Com¬
mittee on Labor and Public Wei*
fare is authorized and directed to

rela¬

the concentration of
in the hands of
partic¬
individuals
identified

10^ Measures for

the

RESOLUTION

The labor picture is more prom¬
ising—with the large majority of
executives expecting no difficulty
in obtaining the
necessary labor

provement

labor

upon

the

An exhaustive in¬

terial facts

at least

power

Contained in-this resolution will

Availability of Labor

to
are

accord-

the *wiews* of

effect

tions

received by the

are

materials.

can

bring

acute
among
manufacturers 6f
metal products where strikes have
curtailed production of basic raw

markets

with

ance

degree

activities
and

^membership,

law

of production

Material Supplies

Among the prod¬
frequently^, mentioned
being in very short supply are
steel and pig iron,
bearings, elec¬
tric i motors ' and castings. Some
executives
report an improved
supply situation for raw materials
since
decontrol, partly because

the

ardous occupations, and to see to
it that a just share*of the
fruits

food

most

ac-

provide; to protect by
the
safety. and
liealth of those wfeo work in haz¬

peak

and
union

controlled by

can

Federal

vyorki*ig

black

companies

which

vestigation of the subject matter

ucts

with management or,
labor,
9. The methods
and
practices
followed in
establishing or de¬
termining collective bargain¬
ing units and the -

months of 1947.

their

bership,
/

voluntary settlement of labor
disputes backed up by the best

tool

base

ill, disabled,

of
union funds, the free
selection
of union officers by the mem¬

"r.:

man¬

However, manufactur¬
be enacted.
ers of petroleum
products, paper
The text of the resolution
subr
products, and textiles also expect
to
be
plagued
with
material mitted by Mr. Lucas follows:
shortages during the first six

manufacturers

wage

oolicy

particular reference to the
counting for and control

never

products, lower prices are antici¬
pated as more supplies become

are

portal

plans,

the

ful

ment

shortages

7; The organization and
admin¬
istration of labor
unions, with

anticipated declines: gen¬
eral
industrial
machinery, ma¬
chine tools, railroad
equipment,
and food products. The remainder
who anticipate decreases are scat¬
tered throughout the entire
group
Included in the survey. Machine

opinions on the fact that sales of
surplus government machine tools

problem,

throughout 1947. Some
executives feel that prices may
have already reached their peaks,

Material

effective measures will have
to be taken to
promote the peace¬

months/however, is not expected

•

need

influenced

the benefit of

to continue

A small minority of
companies
look for a drop in production dur¬

ing the first half of 1947. Four
industries account for about half

portal
have

conciliation

place

the

aged employees,
\
/
6. The
feasibility and desirabil¬
ity of guaranteed annual Wage

forgotten, either by labor or
management, that the public, in¬
terest-;is paramount in these-natiohrwide industrial disputes.
To
solve the basic

recent

with respect to cash
positions:

of John

displayed by

that

issues;

executives

stress

troactive

public interest must be
challenged
whether it be

some

demands

levels are' still; ahead.
instances/ particularly

one-

funds

stock

improving cash positions and
obtaining greater liquidity. Re¬

position of such power.

Arrogance

number

considerable

available.

influences.

planning to expand

how it is possible for

costs

obtain

bond

other

for

Certainly the spectacle

the outcome of the
negotiations. The rapid

steel wage
acceleration

cash

while the other half will
rely on
bank loans. *
.' \ '
/ "

ability to shut down the
American economy - at will
calls
for an intensive
-examination

what that is.

through; while " others': believe

petroleum industry
for- an excellent- six
months with volume at a
higher
level after allowance for seasonal
also

The pending legislation
in Con.

higher volume
of output. Steel makers
expect to
operate at almost full capacity
a

re¬

fectively.

J)#

ducers look for

and the

One would be courageous in¬
deed to predict the labor situation
for 1947. There is good reason to
believe that labor leaders have

touches"

chinery and supplies, heating and
plumbing equipment and special¬
ized £ industrial
machinery pro¬

expect

through

L. Lewis'

beneficiary :of war and postwar
(Continued from page 140)
prosperity. Since V-J, Day the rise for
increases although not as siz¬ arcT expected to cost more. The
in the cost of
living was largely able as some earlier estimates in¬
degree of change in costs of both
attributable to the rise in food
dicated, Almost all electrical ma¬ factors will
depend to a large ex¬
prices. Food prices are in process
of

remainder,

the selection of
officers, are
harmful to the unions and to
the
public interest.

Expecting Depression

heavy

and

responsibility
responsi¬

use

the

(Continued from page 141)

the chief ele¬

to this end and it is the

bility of eachof

through the
half

Senator Lucas Urges tabor
Study

play in

to build solidly this
year, for many good years ahead.
has

in¬

finance

asserts.

ma¬

products.

obtain

programs

controls

their plant facilities

and

About two-thirds of the
report¬

are

costs

efficiency.

ing companies expect to
their
1947
expansion

third of the
companies

queried

have

agement

Agriculture has been

return

productive

Financing Expansion Programs

Plant Expansion

We ought
us

creased

up.

ments.

Each of

production

hastened
competition and
their programs for more
intensive
selling efforts have been speeded
the-

present

buy¬

products,,
food

excess

(b) the need for new
to
produce new prod¬
ucts; and (c) the desire to reduce

felt in¬

petroleum

programs

facilities

sur¬

tools, and

expansion

facilities;

Some executives contend that
the

Most Business Heads Not

Agriculture

itself

money,

are

the second half oi

to moderniza¬

the replacement of obso¬
equipment.
Companies em¬

largely motivated by (a) de¬
mand/for existing products far

ex¬

companies
return of

chine

controlling the money supply, of
which demand deposits loans and
credit

achieve

personnel
is
heavily staffed with collectivists
of various colors.

the

clude

its

and

all

beginning to make

ception, have not made auspicious
progress

regulate
the value thereof," (Article
1, Sec.
8) in terms, of the proper role

consumer

pro¬

them

ana

barking

Industries in which
competition
is already present
or
currently

Businessmen, generally have not
j*et thought through the implica¬
tions of the Constitutional man*
coin

sellers'

have

are

1947.

get out of hand.

"to

tion

lete

ers' market

whereas price rigidity may pre¬
cipitate a general decline. Rising
prices in some sectors are being
fed by credit expansion; instal¬

power

competitive market.

veyed look for

Piecemeal adjustments, well
timed,
may
obviate
general. recession

Congress, shall

have

fining expenditures

wartime

easy

pect to encounter real competition
during the first half of 1947. A

responsibility in the months ahead.
There are danger signals:
Some
price readjustment is inevitable.

that

transition from

third

proce'ss of losing

may

cooperating

buyers' market,, About 13%

heavy

ment credit

the

slightly smaller percentage report
that they are
already in a period

in the past decade and a half.
The businessmen have a

date

Fortunately, a few people
beginning to see that the. real

were

similarly

would

of her

her businessmen

The breaking

damage
the
working man or genuine collec¬
tive bargaining on a plant or/com¬
pany basisr—in fact the opposite

repair.

labor

evolved plan to diffuse the power
of the speech-making, labor die-,

our man-

and

paper

the

number

expansion

underway.
remaining companies are con¬

The

selling
have already been
replaced by the

return to less

report; that

"order-taking" ■/and

controls, less bun¬
gling, fewer strikes and more goods
of superior quality.
The country
is not going "reactionary"; but it
is becoming more
conservative, on
the. theory
that we had many
things worth conserving, which

are

of the oil trust and the tobacco
trust did not damage private en¬

continuing high level of exports
losing game in which we send

—a

abroad the products of

within

power

diffusion of power.

ex¬

suggest

.One-fifth

companies

indeed blessed.

are

smaller

completed

grams

Competition

government

likely to get
a few
changes in the Wagner Act
and a few other negative controls
but Congress is not likely to see
clearly that what is needed is this

the world will become

and

will

sion

movement.

Return of

conclusion, in contrast to the

1947 should mark

The other prime ^requisite to in¬
dustrial peace is a greater diffu¬

either

peoples of the rest of the planet
we

slightly

Conclusion

legislative enactments, one pri¬
mary aim of all policy should be
to greatly raise the risks involved
in calling strikes. Unless this is
ctpne, little good will follow.

out, they may be handi¬
capped by labor shortages.

:In

remedial

numerous

16§

point

plans along this line will
actually benefit the working man.

the risks of calling strikes will be
increased
and ; this
will
reduce
their number and their duration.

tion

„

;
;

concerning the
health and safety of employees

& engaged in industries
•

essentially hazardous,

5. The

that

are

Now James 8c Stayart
DALLAS,

name

TEX.

—

The

of James, Stayart &

firm

Davis,

feasibility and desirabil- Inc., First National Bank Build voluntary , ing, has been changed to James &
funds for' Stayart,
Inc.v<
•
:
;!
r ; ;/

ity of a uniform
systemtof welfare

crease

123) •
years to come. Unfortunately, we,
the long-suffering public, reap the

redemption
and shifting bonds
from
commercial bank to non-r

the

hands

bank

commercial

whether wage-price spiral gets out of con¬
trol. By the same token, an ex¬
sowed by labor, capital, or gov¬
treme break in prices causing a
ernment!
('(;(:('
v
business recession will not only
The inspiring American success
bring deposit reduction to a halt,
formula of more and more for
but may even reverse the process.
less and less was largely aban¬
The trend of business in 1947
doned during the year by :both
will depend on what is done about
labor and capital.
In its stead,
the four great and pressing prob¬
the throttling, monopolistic, lowereconomic whirlwinds,

;

,'standard-of-living formula of less
and less for more and more has
too many lead¬
labor and industry.

been embraced by

ers

(We

both

have

American

the

traded

v'.economic credo,
our' industrial
birthright, if you- please, for a
mess of figures.
And, if this trend
■

[(continues, the torch of industrial
supremacy may pass to another

lems

which

confront

now

us.

of labor for

refer to the demands

increases, the dangers of the
large and unbalanced inventory
situation, the demands of consum¬
ers for price reductions, and the
burden of the large and unbal¬
anced Federal spending and fiscal

wage

situation,
which
briefly discuss, in

shall

turn.1

how

(As I said before/ the
Republicans are not, anxious to
discipline labor in 1947, if it pos¬
sibly can be avoided.. After all," a
and

vote is

elected in : 1948,

what

vote!).

that" the( present

demands
will be compromised along - the
lines of the pattern already estab¬
lished
in some industries,, with

Still
ness

there

some

slowly increased in
industries; furthermore, the
being

business

ratio. compares "fa¬

the

that

rpf

over-employment: and. will un¬
doubtedly spur those remaining

strikes, Wage Stabilization—First Hurdle
nesSv. -In my:opinio^the (end: of
inventory
on payrolls to greater productive
this, boom ' approaches:
:
g
The first hurdle which business
hoarding, and no profits! (((((((
ityv
must rsurmount is that of* the re¬
In addition to some unemploy¬ (Adjustments in ]£rice( Structure
(•( In my opinion, the American cent rash of sharp wage increase
consumer
cannot and will
not demands made
ment, which will act; as a brake
Of the: various problems facing
by the?leaders of
on
strikes, the declining price business*:. I. am /niore : concerned
continue to bear the heavy burden
powerful unions in several of our level;
anticipated for; 1947 will /about the (priceistriito
of strikes,
stoppages, shortages, most basic industries. These de¬
remove a great deal of the eco¬
and bureaucratic fumbling such
anything else. V The (index T of
mands, which range up to $2.80
nomic compulsion, on the union wholesale ( commodity. prices for
as we had in 1946." The shameful
per day; are so great that if they
membership.
the week ended Dec. 21 reached
spectacle of the American people are fully granted to the automo¬
being unable to buy bread with
So, despite the loud labor grum¬ 139.8%( of the; 1926 average? This
bile, rubber, oil, packing-house,
millions
of
bushels, of wheat and steel
was
a
30.9,% increase over; the
workers, they will unr bling throughout the~, land, (I :anr,
same
week s of last; year. .Prices
dumped on the ground along the
doubtedly so increase the present ticipate that 1947 will be a year
roads in the Western states, or
have risen; so much that the pur¬
of relative labor tranquility.,
spiral between wages and prices
the
equally
disgraceful'. empty that the only possible outcome
chasing > power of the' dollar is
Inventory Developments
butcher shops with countless mil¬
about half of what it was in-1939.
will be economic collapse. On the
lions of meat animals on the fanns
Inventory developments seem to. In fact, farm products are selling
other hand, if their demands are
nation where there are no

"speculation, ; • no

;

the

the western ranges, or

tragic farce of John L. Lewis
growling in the lobby of a Wash¬
ington hotel and challenging gov¬
ernment itself, must not be re¬

peated.

...

Economic Power

Looking ahead to 1947, we must
certain that we shall not

make

concentration of eco¬

suffer from

nomic power whether in the hands
of laborf bureaucracy, or

business.

to survive such

democracy

of power must

concentrations

by law or public opin¬
And, it will not be easy. You
recall how the bureaucrats of the
OPA held on like grim death until
broken up

ion.

populi

vox

such

in-the

had

months

outlook is

part of 1946.' Labor leader^ are
talking "big" and ''tough," but I
cannot believe that they are anx¬
ious to strike.

They all saw what

happened to John L. Lewis

who
drive.

spear-headed the current
must [ know that manage¬
ment

land¬

Willi: oppose

further

wage

prospect of a political

slide of earth-shaking

optimist, but I do not anticipate
that business in the year, ahead
will have to face the widespread
strikes' that "it "did irf the early

It took

Nov. 5.

early

1946.

dark, I am still hopeful that an¬
other siege of open labor warfare
can be avoided, Perhaps I am just

in unmis- They

out

rang

takeable terms
the

substantially granted, there is

danger that we may have to

( Although the current

Concentration of

Must Remove
;

be giving the. government econo¬
suffer mists more concern than any of
through another round of strikes the other current economic, prob¬

not

proportions

get our. President to face a
microphone in Washington on the
night of Oct. 14 and announce the
beginning of the end of the many
Federal
wartime
controls :■ over

•

any

demands much more stren¬
uously than in 1946. They must
realize
it

that

strike

called

probably will have to be of long
no

wants

strike,

long

the

under

leader

labor

duration—and

current

especially
of

conditions

high prices, and
depleted union treasuries.full employment,

business and industry.:
word

two

about the na¬

political landslide may be
helpful in estimating future trends.
Despite widespread public opinion
to the contrary, I do not believe
that the election indicates that the

Roosevelt status are "kidding no¬

body but themselves"! Before you
put your money down on such
wishful thinking, may I remind

that the Republicans are poli¬
ticians, too! They are just as in¬
terested in the labor vote as the
Democrats
ever
were
and
the

you

have

Republicans

undoubtedly;

learned from

the New Deal

effective

most

way

the

get.Such

votes!

Significance

Bond

Men

The economic conditions

will

which

will , be of
than ordinary signifi¬

prevail

1947

much

cance

to bond men.

mal

times

Even in nor¬
there is a close rela¬

tionship between developments in
the field of business and those in
the

money

and

capital markets.

Although there

infallible

the

economic

many

warning signals. Invento¬
are
new considerably
above

storm
ries

the highest point in - history and
at the last report were being in¬
creased at the rate of $12 billion
per

.year. ? This

rate * of increase

yeryvgrfat^tt^cannot continue

much

longer.

some

filled!
ment

The

pipelines

haven already

distribution

filled

been

many lines;- in fact/; in
lines, they are more than
When inventory replace¬
demand falls off, competi¬

operate at the pro¬
level : causing, prices Jo
soften or to break until they re¬
tion begins to

ducer

flect the new conditions.

Business

who have confused inven¬
tory replenishment demand with
true consumer demand, will find
men,

adjustment to these new condi¬
difficult, if not impossible.
,

tions

i From

low the danger

sufficient funds to pay strike al¬
lowances
dooms

inadequate war chest in a labor

dispCTte is the equivalent of fourwheel brakes on the highway.
The

that

leaders

rank

The

and

are

must

file

know

their

not anxious

members

have

to
not

their losses of income
during the 1946 strikes; in fact,
it will take many of them years
to recover the income they lost.
In this ( connection, < statisticians
estimate that it will take the steel
workers six years to regain the
income lost during the steel and
forgotten

coal

strikes." ('(:

((;/.:((./

" V?

From another

standpoint, many
of the more able labor leaders
have read the handwriting on the

ments in business become of para¬

mount importance because of their
effect on Federal Reserve policy.

acter.

the

strike.

and

deposits.by selective

union

membership

wall.

ther reduce

to
hire
pickets
strike from the start, an
and

They realize that if serious
production

strikes further disrupt

consumption, labor legislation
probably will be drastic in char¬
They know that if the labor
situation
is
relatively tranquil
when the Congress convenes, ex¬
treme labor legislation will - not

for

did

nearly three times what they
in 1939. Whether the higher

unbalanced
ventories

condition

serious than the huge

available.

current

prices

justified

are

not recovered.

the

consumer

It is thus that r:

gets .the benefit .of

capitalism.(/<;(.•

May: I epitomize: In

■

competi¬

largely of J
historica Iinterest; only
market *
price is ■ real,:
■.
,.Nbw! .that /wq are entering ra (
different .era iri price determina--V
tion,,„whatsis the outlook with;
respect to the prices which will;/
be set by the .market?
.
•j
,

If Pmay hazard a gUess br two*'
I ( should

say (that the prices, of %t
products have already passed
their peak. Record-breaking crops' (
and ;decline in- the effective; de-s

farm

iniand; (; from;; Europe v will ( drive'
farm products, "downward.
The (
sharp*/ panicky break iri Cotton ' (
prices (a. couple of months(-ago; (
oven - though the (cotton crop \Vas •
not a large 'one, demonstrated the (
vulnerability of (the agricultural; r
.

price/ structure/; Of(course/
products will enjoy
support at slightly lower»
levels for the next two or three v
eral. farm
Federal

probably hot !

and thus will
drop too far. * :
years,

have

•

i Another,weakness in our inven¬
tory situation is the large
inventories in
consumer

acceleration of

structure.

viction" that

;

One symptom- of the weakness

These inventories are

generally thought.
During
the war people got into the habit
of forehanded buying.
(In fact,

than

tent

of consumer inventories.;

know, soap and soap powders
disappeared from store: shelves
for some six months during 1946,

didn't see anybody going
around dirtier than usual!- There
but you

must have been

quite

bit of soap

family closets! The widespread
use
of home, freezers and cold
storage lockers is another new
development which greatly in¬
in

creases

consumer

inventories.

economists have attempted
to rationalize the inventory total
Some

are,

the current

Production of

priced

such goods

in l&rge volume .and can *

now

expanded: even more.'There'
in; general,- no accumulated

much

and

hands

the physical volume
in
many
lines has

larger than .is generally thought»(
Moreover, and most importantly* ■

higher sales totals in dollars,
of goods sold
stopped : in¬
creasing; in fact,, in some lines
.,

volume started tb-.der
cline two or three months ago.
More'and more dollars (• for less
and less goods not only, absorbs
purchasing power, it is a power¬
ful psychological factor, discour¬
aging demand. Declining volumes
with mounting sales figures • is
one
of the oldest danger signals
in business; yet so: many business
men( refuse
to heed the .clear
physical

;
Over-emphasis on cost account¬
ing, which reached a peak during
the: war, is undoubtedly at; the
bottom of (much of ; the: current

disregard of market realities and
potentialities. In wartime, busi¬
ness
men
could pass their costs
on

the

what

government no matter
result might be.

final

consumers

are

larger proportion of the family-

be devbted -to pur- %
chases? of durable goods/^sueh as:
home- furnishings, J automobiles*'((
income will

and so on, which are now begin-'
riing to come oh the market in!

real-volume.

- • -

'•

•-

■(/ As (for the ( pyiceS, o^
;
goods, I anticipate7^ thafT, they Will
remain: high' a
as soon as we

little longer;; but!
get rid of some "

can

bottlenecks,; increase

our

the (

productivity of labor a little and
really get production rolling, dur-;
able -goods prices, too; are bound,,
to drop.; Of course, labor may be "
unintelligent enough to prevent
prices from dropping. If this hap-'
pens, sales will not he as large as (
expected and profitless prosperity
and a (Teelle mite'* of bankruptcy :
may be expected.
?
^
Disappearance of the vaunted.

•

seem to think that they can
their costs on to the "Consumer backlogs of demand for durable'
in( the same fashion* no matter goods will be one of the features (
how high their costs may be. Un¬ of 1947. Increasing production and!
der conditions of competition this the higher prices now prevailing
eliminate
these
backlogs
is, of course, nonsensical. Under will

They
pass

shall

once

enj oy,

the

coming year, price determines
cost much more than the opposite,
V/hen

producers do not get their costs
producers are se¬

much quicker
in

than; expected; Sb,
opinion,;competition and?

the search for volume will begin:
to lower even durable goods

prices;

by the second half of the year;;
;
Anyone who doubts this should:(
pause and reflect on the utterly j
fantastic productive facilities of
this great country of ours. -Ac-•
cording to the National Industrial:,.
Conference Board, in 1939 we had ■
$39,588,000,000 of productive fa- •
.

cilities to which we added, during:
the

lected, ' by consumers,

which

seems

have

to be the

been

for¬

gotten by many.: /,•
| (There is another, important as¬
pect in which pricing on the basis
ofs

market

from

competition

;

differs

pricing on the basis of costs.
normal conditions a pro¬

Under

period

July,

1940, to June,:
totaling •
June*:
losers in the economic race. - Fail¬ $23,505,000,000,; and ?since
ure of
these marginal. producers. 1944, we have added several "bil¬
lions more of productive facilities.'
is : normal and
happens : all the
time in competition* a7condition Thus; despite current thinking and 'v

back. 'Certain

by pointing out that the increase ducer will lose money On a sub¬
been largely due to the in¬ stantial proportion of his output,

has

is:'

price ( level is the demands in the soft goods .field; recent behavior of prices^with re¬ on the contrary, as pointed out
the- inventories in fhe(
lation to volume. Despite higher earlier,

business man says he has
to get a certain: price because hf
has to get his costs back; he con¬
you had to buy ahead when op¬
portunity presented itself in order veniently forgets the two great
to protect your family from some consumer safeguards of. substitu¬
of
the
wartime maldistribution tion and competition. One of the
and mismanagement.) Soap fur¬ characteristics of a normal market
nishes a good example of the ex¬ is that a substantial percentage of
you

decline.

of the present

total of competitive capitalism,, which

hands.
much larger

With respect Jo

a
deep-seated con¬
prices are" too high
and that creates a dangerous price

sumers

standpoint, the Warning conveyed.

price

But, under conditions of managed
interest rates and managed money,
which we have today," develop¬

Beyond; question, the monetary
authorities will be forced to fur¬

conspicuous

are

soft goods of all'
lems.
Swollen inventories .have higher;: wages,^ - take|(; vahd^other categories, I anticipate a marked;
been, in the past, one of the most costs is beside (the. point.; Con¬ improvement in quality and an

of our in¬
probably even more
total. Un¬
exceptions, the treasuries of many
fortunately, much of our current
unions, particularly those of the
inventory consists of products fin¬
industrial type, are at very low
ished except for some small bot¬
levels
in
relation to -/ the ; huge
tleneck part—fof example/ refrig¬
number of members they would
national government will make a
erators
awaiting motors, radios
have to carry in case of a strike.
sharp swing to the right. While
awaiting
cabinets,
automobiles
Falling off in dues-paying mem¬
we are bound to have important
awaiting generators, etc. Such in¬
labor legislation in 1947, business bership during reconversion, and
ventory can come on the market
heavy organizing and strike costs,
men who think that labor is go¬
with price-shattering rapidity the
ing to be forced back to its pre- pushed many union treasuries be¬ moment the missing part becomes
point. As lack of
A

tional

'
today, however, arev
generally, insisting on a. standard > •
mark-up over cost on each prod-- A
uct -regardless of. market conditions.
This cany be- done <in ga¬
seliers' market;, but the buyers' ( :
markets
which o are
starting ' in
many lines will force all produC- :"
ers to meet the price of the lowest-- •
cost producer, even though costs - ufacturers

and

of his prod¬

some

the remaining few. Man-

tive economy, costs are

inventory, accumulation
stops?
And it mi^ist stop some¬
time. Clearly, the; end; of theinyentoi^ vltopmv ^
far.r
reaching and basic effects onjbusi4

end the present abnor¬

mal and uneconomic condition

busi¬

inventory

profit

efficiency,; economies? and ',im- :
provements, and .that is the glory s :

lion

anticipated for

recession

1947 Will

the

even

holds up. (But, what will the ratio
look like when sales drop $12 bil¬

Productivity is al¬

done.

relate

break

ucts; and make a wide margin of L

vorably with prewar ratios. They,
therefore* conclude there is noth¬
ing, to worry about. Of course,
they - are right if- sales (volume

higher
its ef¬

and

will be

ready

particularly

others,

men,

find

productivity,.,, but
is ground for hope that this

ficiency

longer in the demand

total to current sales volume and

increases of 8% to 12%. Of course,
costs unless labor increases

happen when that $12

..column.

wage

such increases will lead to

will

billion is

probable,'- therefore,

It; seems

They-overlook

in,1 (first out".Hnvenfory
price policy followed by many
producers nowadays, which effec¬
tively prevents, inventory .price
inflation.. They also overlook the
real. problem^ which : is . not ' the
total, but the rate of.; increase- and

be passed.

President will be

prices..

the ,^last

of 1947 Bond Market

Economic Background
(Continued from page

Thursday, January 9, 1947

FINANCIAL CHRONICLE

THE COMMERCIAL &

166

1944,

further

facilities

indications

to the contrary, me
undoubtedly have,' on. any realis-

tic basis, great over-capacity in
nearly all lines of bunness activ~>>:ity.
(
■=
!

The

Federal Taxes

last

economh'

>■.

> ^,.

nroblbm

listed for discussio>" «dlT be only

briefly

mentioned

because ' it

Iis

(
"

Volume

well

known..
end

refer

to'the

expen¬
In the

present "fiscal
30, 1947, we

THE COMMERCIAL & FINANCIAL
CHRONICLE

huge Federal
heavy taxes.

continuing
ditures

/Number 4558

165

spending

Wat' I;

decade

the

than

the

roaring

the

Federal

Reserve

markets.

money

The

fiscal

and

debt

Administration

will

there will be

trend toward

;• end
of 1947 should
commercial banks hold¬

the

ing fewer government obligations
than

This'trend

now.

and

the

entire

the

volume

will

deposits

liberal Rooseveltian spending just
prior'.to the outbreak of World
War II. The current
spending im-

revealed;

relationships

the

Federal monetary, authorities will

not

their

retain

control

tionary aspect of such heavy tax¬

need

ation is well

plea/ that

crease

burden
as

known; it is
the-economy

the

individual.

great
well

the

Conse¬

quently,- it is imperative1 that

June ;30

defer

Congress

death

to June

from

30, 1948,

wartime

increases

War-borniiegaey of
"spend, spend, spend" be promptly

/**

•-

„•

American
v'-\

.*•'

business/'
""

Summarizing

•

••

'
'

views

prob¬

labor.

■'

duce

cession in business.

how

withdrawing their /.support; from
the financially weak as soon as a

will be will depend

attitude of
on

centration

largely

the
and

Congress/
bankers

the cost of construction in the

building

industry.

labor

from

will

be reasonable and /If it will in¬

depres¬

proval

able goods is very great; and the
current income and the liquid as¬

pledges.

levels/

ments

Decline

<s
-

"■

•

return

heavy,

flow

excess

crease, which might
and

and
currency
is
may

cause

gradu¬

exports

in¬

certain

in¬

He
*

certificate

rates to "defrost"
themselves by declining from the

asked

proposes

exchangeable

designated

foods

ment, and (2) that such

than the amounts

re¬

come

tem
.

and

coupons

25% discount from

provide

minimize
an

]

groups. He holds this sys¬

would

between

rail

surpluses.

adequate diet.

and

Commission.

Rails

they

lose money on this
traffic because their charges are
held down to compete with trucks.
Truckers counter with
complaint
that competing rail' rates force
them

to maintain their tariffs

unduly low level.
ICC looks to
the Chicago
hearings for enlight¬
enment.

Ar-

are

leigh P. Hess,
President;
D.
J. Taylor and
R.

Hendee,

dents; Herbert
Blizzard,
t

ry-

Treasurer;

E.
As¬

Scott,

sistant

Secre-

tary
B.

and

Gurney, Jr:,

aimed
of trade bar¬

was previously a part¬
Arleigh P.'Hess & Co.; Mr.

ner

Taylor and Mr. Hendee

Boenning & Co. Other officers
were previously partners in Her¬

The succeeding stage will
sessions of the preparatory

committee:

opening

Geneva,
-T

That

renowned

may have

bert H.

inflation circle

big farm owners/dizzy

before the 1947 recession is/come
gone.
Farm debt is lowest
now since ; 1915, but some
farm
and

associated

Arthur

are

with

were

Blizzard '& Co.

Also

with

the

firm

Batten, Thomas J.
Joyce and William M. Hess.
•/ ;

Hess,
duct

Blizzard

will

Co.

con¬

complete trading and in¬
vestment business.
i
;/ // v'/:/:"
a

land

purchasers with heavy in¬
debtedness will be hard pressed if
agricultural incomes decline. They
have, to incorporate operat¬
ing and production credit obliga¬
tions into real estate indebted¬

may

thereby

pointing

the

way

toward distressed farm land

H. Neil

Mcknight Co.

Formed in Pensacoia
:

PENSACOLA, FLA. — Harry
McKnight has formed H. Neil

sales.

Congress will

ruminate

Neil

this

situation, perhaps prepare for it

Ward & Co. Offers

Halliday Common
///Ward & Co.

made

public of¬

fering Jan. 7 of 74,687 shares of
50c

value

par

stock

common

Halliday Stores Corp;/, operator of
chain of women's and children's

shops located "

wear

The

stock

share.

the South.

priced

was

per

H. Neil

Proceeds from the sale will be

applied

the

company to the
purchase of all of the outstanding

stock of Benton Stores,
Inc., and
The purchase price

it? affiliates.
of

the

stock

expected

McKnight

McKnight Co.

to engage in the
securities business. Mr. McKnight
was

previously an officer of Milhous, Martin & McKnight, Inc. of
Atlanta.

approximately $425,000.
Halliday

Stores

Corp.

was

formed under New York laws
Jan. 5, 1946, as an affiliate

Benton

Stores, Ind./ which was
organized Dec. 6, 1938, /Through
itself and its
affiliates, the par¬
ent organization
-presently-oper¬
ates

five

leased,

leased

stores

departments

and

four

various

Ready-to-wear

opera¬

conducted in Atlanta and

are

Augusta, Ga.; Gadsden, Ala.; Char¬
lotte, N. C.; Florence and Charles¬
ton, S. C., and Louisville, Ky. The
main office is in New York.

Without

giving effect to the
offering, Halliday Stores

present

Corp. has

of common

standing.

stock

mon

total of 80,000 shares
stock issued and out¬

All shares of the

Holley-Dayfon & Gernon
Admits New Partner
Leonard

office

rights..

Dayton

the

partner¬

Rand

Tower.

organization

and served for

1943

time in the Navy.

graduate

Princeton

University and the Asheville
School,, Asheville, N. C, /
Other

equal / voting
rights of one vote per share. The
no
securities; have
preemptive

ship in the firm of Holley, Dayton
& Gernon of Chicago, members of
the Chicago Stock Exchange and
Chicago Board of Trade, has been
announced. : Mr./ Dayton
is
in
charge of the firm's Minneapolis

partners

com¬

have

CHICAGO, ILL.—Admission of

joined

Now Hammond & Fisher

are

;

Ward

Dayton, Edward T. Gernon, John
M. Holley, Jr., Ernest A. Mayer,
Joseph C. Ores and Elizabeth L.v
Dayton. Branch offices maintained //;•
in Madison, LaCrosse, Eau Claire,
du

Lac

and

Wausau,

Wis¬

consin and Roswell, New Mexico/

/Frances H. Lyon retired from
limited partnership in W. Wallace
Lyon & Co., 50 Broadway, New
York City, members of the New

Mitchell Securities

York Stock

to crush

one

strive"

supply bottleneck

available

the railroads.

(1)

greater steel

production, (2) greater flow of
steel

car

and

exports of

cars

and locomotives.

particular, transportation de¬
ficiencies contribute to lumber
shortage.
Tariff

tussle: gets

Committee

and

Exchange,

Jan. 1 the firm

Dec. 31,

name

was

changed to Hammond & Fisher.

locomotive

makers, and (3) curtailment in
,

Mr. Hess

ITO,

Fond
^

Herbert H. Blizzard

////;/// '■:.;/■■ "■ /•/

riers.

tions

less than
carload freight in pickup and de¬
livery is to be ventilated in Chi¬
cago
Feb. 8 by the Interstate
rates

over

They envision

for*

face value to people in low in¬

As, on balance, the redemption
refunding of securities held
by the commercial, banks should

sold

and

this year by upping numbers of
locomotives
and
freight

that

be greater

Washington,

tap public opinion
of

organiza¬

tion

cars

and
.

Hearings will

Chicago, New Orleans,

support

South
•

new

registered grocery stores be is¬
sued by the Agriculture Depart-

the bill

retailers

Federal/ agencies will

ft*

■*

ruction

truckers

claim

pay¬

present fixed levels.
-

The

' 1 '•

stamp plan.
(1) / stamps

prices drop

reserves

Organization poll
launched by the State De¬

locations.

Vermont
Republican
Senator
Aiken to prepare for inevitable
surplus foods by enacting a new

whom, will largely depend on
business activity and loan and de¬

the

-X'

/ Congress

spot

"'VvV a',:fi.-V"Z

trends.

from

posit

anticipators report

nay,

two; make Z a revival of subsidies
look unavoidable.

to whether the Treas¬
ury will offer new securities, arid
,

While frozen fruit

consumers.

vote

may

evitable, consequent fall in do¬
mestic price feared. Together, the

outlook is for a bal¬
budget. This means that the

decision

and poultry.

more frozen meat
and poultry will receive a warm

demand for the grain has passed

/•r) The present
anced

phenomenal growth in quick
freezing and marketing of meats

reception

are

peak.

busi¬

risky.

cost¬

eral

wheat before 1947 yearanticipated by Agricul¬
ture Department prophets/ Export
end

Over-the-counter rates, however,

becoming

House

Senate will vote

financing of durable goods.

ness is

agricultural

check shows

campaign

Parity-supporting Federal

the. tapering off of loan
expansion from such sources. In
the coming year/ the chief source
of increased loan volume will be

perishables will be a 1947 stand¬
out. Rates will remain more

Commerce

dicate

increase

for

transport

vegetable industry faces a
chilly future right now, Fed¬

/ greater
benefit to low income citizens*

inventory accumulation in/

!■ will continue to

The

ing. Gaining in favor is
ated
reduction, with

developments: on, the capital and
money .markets piay be worth¬
while. Declining prices and the

in the

toward

/ will distill this cosmic dreaming/
down to more realistic reason-:

A short analysis'of the probable
effect of the foregoing economic

end of

Cem-

tion

Air

new

Treasurer.

financial

contribution

because:

The

aye.

sets in the hands of the American

people are at very high

with

Talk of a £0% tax cut across
the board has; become purely
political.
Republican : House
leaders will sanction its ap¬

sion because the accumulated de¬

plants

another

mand' for. housing and some dur;

HottSe' Interstate

Commerce

mitee to which airline jurisdic¬
is; aissigned; by* the Con¬
gressional Reorganization Act.

con¬

Already,
says
FTC,
are
withdrawing loans
denying. loans towar-

the

Foreign

and

prices continue, to rise and labor
troubles flare, the. recession will
be much more serious. But, even
a

the

/industry

monopoly through the shallowing
of the wpak by the strong.

hand, if costs and

that, I do not expect

and

Interna¬

Trade

Hess,
been

123

V i ce-Presi-

ity should be only-moderate and,
the~who!e, beneficial.
1

matter 4s

declines in general business activ¬

On the other

ly than for rail or water move¬
and
market
weaknesses.
The ments, but will be offset by sav¬
agency foresees more of this as war ings in lighter containers and re¬
industries wither under the heat frigeration expense.
*
of competition.
*
*
/
FTC offers no
solution, simply cites this trend
And keep an eyei cocked for

productivity so that. the
current high costs in
industry, es¬
pecially in the construction indus¬
try/ can be ameliorated, then the

of;

spawned

crease

Certain to be heard from in this

and re¬
sultant monopoly, Federal Trade
Commission warps in a report to

/ recessiph

labor in general

want to learn if remedial
legislation is possible and desirable:

;

depression .cloud appear? >oiri the
horizon" ^contributes

demands

a reckoning. Airminded legislators are
honestly
disturbed by the airline mess,
•

How long and

thi$

pronounced

gress

projected

conducted

ness,

Commercial airline operations
shouldn't be surprised if Con¬

assets. There's

"The self-interest of banks and
bther. financial
institutions
in

7-rthat is; ihatwshalbbave^r^i

•

acquisition

durable goods will begin to

OPA, won't < give its holdover
shysters more taxpayer toll.

enacted before adjournment.

con¬

to fi¬

money

prosecution

But

/-;

—

has

Street.

Assistant

will

politicians of both
major breeds have had enough of

fair chance something of this
character may be fashioned and

some lines by. the second half
of the year/ By that time, I also

lawyers

against

♦

the

selves.

common

these

April 8,

amending

under

//•••

.•

x'-*

toward lowering

striving to create jobs for them¬

falC I furthert expect that thepe
declining prices will have a tem¬
porary effect on business activity

dis¬

Inc.

offices

purpose is to

the

will pro¬

and

old
OPA
commands will be rebuffed.
It's
the oft-told tale of bureaucrats

to curb more effectively the in¬
creasing mergers of competing

of their stocks

OPA

transgressors

explorations

through

continued

nance

means

monopoly

/corporations

proportions

anticipate that the prices of

Ambitious

Ad¬

Co.,

Officers of the

Seer

Boston,

system

new

stamps

the

with

Broad

pegged plague Congress for

legislation

;V He ■'

(2)

Section 7 of the Clayton Act as
/

■

serious

and

ways

couraging

Jri

sumer

ownership

assume

and

the

Congressional

see it,, we. shall have a
slowly declining price level, which

defrost

into

petition.

may

•;/////:/;•;/

partment Feb. 25.

i-I1,ivr'//"'/

•

Blizzard

Denver and San Francisco. Real

of a punchable coupon,

short-term certificate market.

,//. As I

donment

short-term

certificates,

thereafter

general
1947 ought to be a good year f6r
those, both labor and capital, who
can face the return of real com¬
-

reserves

Federal

petition between producers and
competition in Vie ranks of labor.
* This
competition will bring lower
prices and some failures to capiI talr it wilLbrihg some unemploy¬
ment and higher
productivity to
the ranks

their

con¬

bargaining

to be

stamp-banking plan substitution :

The- Board wants to (1) /require
banks to hold a certain portion

able economic^ developments in
1947, it seems clear that the; big¬
gest and most significant develop¬
ments will be the return of com¬

■

that

will trade
with unfettered

tional

of sugar rationing by mid-year.
The agency is considering aban¬

Reserve Board's contemplated de¬
sign for supervising bank credit.

■£'

CPA may turn to

Phila4ei|ihia

PHILADELPHIA, PA.

will

quotas

vL «■<-//

Reciprocity Committee hearings

of this group to

some

•

sional consideration of the Federal

April,

trade

More to be watched than the

in¬

sers,

.highUght Congres¬

the future of

substantial

in their quotas before late

■>

industries

might shortly be
lifted to prewar levels. * Such ? is
not contemplated by OPA dispen¬

early

expect

hope

action cutting;: back /the/
examined with a critical eye. The / rates even before June-30. ,•//.."j •-/
J
«*>
/i
success - achieved
degree of
^
i;•;
in
< solving this problem will have a
Caution wHl
on

world-wide
in

power.

consuming

encouraged

contrary,
/Republican?/^ arecortsidertng,

//New* Dealaftd

controlling effect

the

ministration

1947, if then. Recent trends have

in excise taxes. On the

our

Sugar

—

brawl

■

•

Hess, Blizzard & Go.

Congress, special interest formed

will

marts

(Continued from page 125)
Almost certain rejection is in
sight for President
Truman's

unidentified;

ference

Washington and You

month

with reciprocity
legislators.. Probability is that no
legislative action can emerge be¬

fore

yearly Federal tax load
alone; *o£; around $1,000 bn
the
?:■ averagbAmerican lamily^ Ih ad¬
dition,-there-is a heavy load of
state, local, and municipal taxes
which n^ust be borne. The defla¬

seminars, dull,

actually empty gestures; (2) final

(3); in

money

pbses a

statistical

decisions will be drafted in
secret
chambers by parties

the

blocs

the

and

reciprocal trade agreements.
Here's': the4outlook:: (1 )•
hearings
will

protracted,

between

the various interest
rates; and the

change greatly.
structure
All in all, 1947 should be a very rate
interesting .year/in the capital and market

years: of

167

nislhagement policies of* the

traditional

probability that loans will not in¬
crease very much indicates that

twenties;

five

the

find

than in the entire period of World

Banks/,, the

ending- June

year
are

j leased

Street,

Frank B. Cahn

Admitting

BALTIMORE, MD.~
Cahn

Frank

Co., Equitable Building,

members

rougher

Reciprocity Infor¬
mation; readies, for?, hearings Jan,
13 on projected
modification? in

Open in N. Y. G.

Baltimore

the

Stock

New

York

and

Exchanges, will

admit Milton Gerber. to
partner¬

ship

Jan. 16.'

Mitchell Securities' Corp. is be¬
ing formed with offices at 37 Wall

New

York City, to en¬
securities business.
Bancroft
Mitchell,
President and Treasurer; Robert
*
H.
Smith,
Vice-President;- and;>
Lynn
Hafner, Z Secretary.
Mr.
gage in
Officers

the

Mitchell

was

are

previously with

Marx & Co. of New York

ager/of the

statistical

business department.

as man¬

and

new

•Vv-COMMERCIAL & FINANCIAL CHRONICLE.

168

(Continued from page 129)

Securities ;Reld|p|
(Continued from page 123)

5% spread interpretation. ■§ This
dered on Nov. 25, 1944.
*
;

opinion was ren¬
'

aspect of the letters is that they set forth
flexible criterion to be used in determining what prices,
"The third

inclusive of .spreads

of mark-ups, bear a 'reasonable

rela¬

tionship' to current market. As we have already noted,
the percentage of spread or mark-up is only one of the
factors pertinent to such a determination. Others include
consideration of the dollar amounts involved, market con¬
in; the particular security, the relationship be¬
tween the member and his customer, and any unusual
circumstances incident to the particular transaction.
,The
ditions

'devoted to
the principle; that/its members are entitled to make a
'profit,' as stated in the letter of Oct. 25. The same prin¬
ciple is embodied in Section 4, Article III of the Rules of
recognizes that the Association is

Board also

/'*

Fair Practice.

reduce in¬
ventories
and shorten commit¬
ments.
They are carrying out this
policy while demand is still sup¬
ported by high purchasing power,
and
they/ propose to; have the
situation in order if a falling off
in
employment
and
payrolls
should come and deal a Teal blow

emphasizes that 'it would be impractica¬
ble and unwise, if not impossible, to write a rule which
would attempt to define specifically what constitutes a fair

spread or profit, or to say, in exact percentage or dollars,
i; what would result, in each and every transaction, in a
priceto the customer which bears a reasonable relation¬
ship to the current market.'"
HoW is each dealer to determine whether the Business
Conduct Committee of the NASD, its Board of Governors,
and the Securities and Exchange Commission, will have the
same reaction to "dollar amount," "market conditions," cus¬
relationship and unusual circumstances that he has.

policy

common

is to

to their sales.

Thursday, January 9, 1947,

are

subject of comment along with
those of retailers, and were re¬
ferred
to
in this •' "Letter" last
a

month.

They

but

shipments,
short

are

not excessive
against sales and

are

when measured

the

contrary

relation¬

according

ships which have prevailed in
past.
While speculation fpr
higher / prices undoubtedly
has
animated some buying, the pri¬
the

mary reason

has

been

for building up stocks
support

the

expan¬

Sales; and there has been

notable increase of caution in
recent weeks.
Nevertheless, in¬
ventories are unbalanced; and as

in the- past

Union

approach of the 1947 harvests. At
several press conferences during
the past month Secretary of Agri¬
Anderson

culture

belief that

has

in money wages.

expressed

retail food prices will
months and

has

predicted;

We shall not
anticipate here the discussion of
CIO proposals which appears
further on in this "Letter," except
to
point out that general and
substantial wage increases can¬
not possibly be absorbed without
increasing prices, because they
could not be so absorbed by all

5 to 10 %- decline

prices from the October

peaks over the next few months,
15 to 20%

decline for the

marketing year beginning July 1
next,/-//v f-;;

■

The

peak in meat; and lard
prices clearly was passed several
weeks ago, for the drop in these
commodities from the high points
reached

after decontrol has been

of the order of 34%

in wholesale

beef, 43% in pork shoulders, and
55 % in lard.
Lesser declines have
occurred in butter and eggs, corn,

wheat, and flour.
Contracts for
distant future delivery in almost
all

agricultural products are be¬
current spot prices.
Citrus
fruits and canned juices have had
a violent decline, and weakness in
low

other

some

canned

and

frozen

they would become foods is observed.

excessive in some things if sales

should fall off.

has

swollen

the

demand in

the

calculations as to what
increase employers on the
average can absorb are meaning-*
less, for there is no pooling of en¬
terprise, profits and losses in this
country, and changes in costs ex¬
ert
their, influence not on the
average but on the margin. Hence
the proposal to catch up with the
cost of living by raising wages is
one
which would
give another
turn to the wage-price spiral.
As was said here a month ago,
"the longer the wage-price spiral
lasts and the higher it ascends the

greater is the danger that the next
wil

destory the balance of
and start it top¬
pling."
Organized labor includes
only about one-fourth of the gain¬
fully
employed
people in the
country.
If one group insists on
higher money wages which lead
to
higher
prices
than
other
groups, in the long run, can pay,
the product is priced out of the

the

of Labor Statistics consumer

market

price

statistically

producers.-; Even
corect,

high cost of living is one of
the major eocnomic problems of
1947,
The trend of the relation¬

decline

markets, and that when it ceases
there will be a smaller outlet for

wage

turn

The

expecting a busi¬
put stress on inven¬ ship befween incomes and living
tory accumulation, but not pri¬ costs for some time past has been
marily because they fear liquida¬ unfavorable. Per capita national
tion will
suddenly set in and income after taxes almost doubled
cause
depression.
Their
main during the war, while the cost of
argument is that inventory buying living, according to the Bureau
Forecasters

ness

different

the

The
of Agriculture Economics

in farm

However, this is

illusory route.

then decline later this year.
Bureau

leaders have

approach to the income-price re¬
lationship,
They favor increases

off for several

level

and

inventories

Manufacturers'

sion of

"The Board

Preview oi 1947 Problems

Price Control in the

lish the

structure

and

nominal

the

money

index, increased only 30 %. Since

gains of the workers are given
the end: of the war, however, the up in unemployment. ...
Doesn't it seem incongruous to have the SEC charac¬
production unless other demands increase in disposable income per
As
opposed to this illusory
terize as impractical /theestablishment of a ruld which rise to a compensating extent. capita has been less than 6%, means of catching up may be set
This is true, but it is not the last while the cost of living, using the the
advantages Of. effort to in¬
would attempt to define what constitutes a fair profit or a
word on the matter. For if prices figure
for
Nov.
15,
increased crease efficiency and production,
fair spread, and nevertheless, at the same time, have the
and incomes are in balance and 17.2%.C Most of the
jump has oc- and of waiting, in the interest of
NASD attempt to do by interpretation what cannot be done the pattern of production fits the cured in the
past five months. stability, until normal competitive
demands of the buyers," there is This is moving in the wrong di¬ forces and the return of buyers'
by rule.
never
any
reason
why buying rection. If the cost of living can markets in one line after another
.v.
The 5 % mark-Up yardstick has served to point up the cannot absorb full
tomer

problem of Main Street against Wall Street, particularly be¬
cause the result has been to change trade custom and usage
as it theretofore existed in the securities field by means of an
interpretation, which was not submitted to the NASD mem¬
bership for approval, to the detriment of small dealers in

production. be cut without an equivalent de¬
puts the emphasis on other cline in national income—which
aspects of^ the -outlook^ namely, is possible by increasing produc¬
the balance in costs, prices and tivity—real purchasing power will
income relationships.
rise, and nothing could so im¬
This

Production

securities in all

parts of the country,
In our judgment intelligent finance is opposed to this
yardstick, and any other policies that favor big business to

problem of the economy as

the detriment of small business,

may

as a

whole.

Our view has always been that trade custom and usage
be altered either by a self-operating change of such

customs and

■

else by specific legislation.
Never, in our opinion, can that result be legally accom¬
plished by any artificially imposed fiat.
'
In the light of the above quoted opinion, we find
the arbitrary attitude of some of the business conduct com¬
mittees in calling dealers to account merely because of the
size of the

whole in the Coming year is to

knowing that it will eventu¬ proportion of non-durable goods

ally be detrimental to all concerned and the cause ofcapitalism

make the changes required as the

usage, or

spread, is wholly improper.

bought

may

If so important a matter as spreads and profits cannot
properly be the subject of a rule, then they may not prop¬
erly be the subject of an interpretation or yardstick.

consumers

declines

the

be expected to shift toward

the latter.
;

proportion of durable
goods rises. This shift is already
under way, but has had no busi¬
ness effect because there has been
room for expansion in both kinds
of goods.
However, the catching
up with deferred needs goes faster
in non-durables than in durables,
and as the year goes on the pat¬
tern
of
consumer
expenditure
while

•

Shifts in demand require shifts

production, and the question is
overall activity can be

whether

sustained if there is some easing

and

the

benefits

are

distributed

through lower prices, all groups

go forward together.
• v
r
*
% Any forecast that 1947 will be a
good year must be based, in final
one
which it is now seen free analysis, * upon
a
belief
that
markets will accomplish, is to through good sense and mutual
bring down the retail food prices adjustment a workable answer
which are so weighty in the cost will be found to the wage ques¬
of living, and which have risen as tion.
For if the year is to be one
compared with prewar more than of long and costly strikes, or if an
other prices and the run of wage exorbitant price, in thd form of
rates.. Declines in prices of farm wage increases which the econ¬
products may mean moderately omy cannot possibly sustain, is to
smaller incomes for farmers, even be paid to avoid strikes, then de*
though production is huge as now pression threatens. ;
/
expected.
Nevertheless, the net
effect of lower food prices upon
New York Stock Exchange
the economy should be beneficial.
Farmers as a group are in unpreFirm Changes Vcedently
good financial shape,
The New York Stock Exchange
with reduced debt and increased
has announced the following
liquid assets.
They have had a weekly firm changes: *
»
?
greater rise in income and buying
Leslie L. Bennet & Co. was dis¬
power than most other elements solved on Dec. 31.

prove the outlook.
One way to narrow

A Shift In Demand and

bring down living costs.
When
productive efficiency is increased,

the gap, and

Weeldy

of the

population.

survey

would conclude that they

can

stand

Any general

modest loss of income

Transfer of the

bership

the

Exchange mem¬
late William J.

Baroni to William J. Baroni, Jr.,
production and employment in
The problem is to through price declines better than will be considered by the Ex¬
HERE LIES CONGRESSIONAL OPPORTUNITY TO
the rest of the people can stand a
take up the slack by expansion in
change on Jan. 16. It is under¬
continuation
of
present
living stood that he will act as an indi¬
and
GIVE IMMEDIATE RELIEF TO A SORELY OVER-REGU¬ construction,; automobiles,
costs.
As buyers they will bene¬
other hard goods. Such transitions
vidual floor broker..
v
LATED INDUSTRY BY PASSING A STATUTE DECLAR¬
fit along with city peoples from
are not easy.
M. D. Doyle & Co. was dissolved
On the other hand,
a check to the upward trend, and
on Dec. 31,
'
ING IT TO BE ILLEGAL FOR ANY REGULATORY BODY demands on the durable goods in¬
the obvious place for the check to
dustries are so intense, and plans
Interest of the late G. Hermann
: IN THE SECURITIES FIELD TO CONTROL OR ATTEMPT
for expansion so widespread, that begin was in foods.
Kinnicutt in Kidder, Peabody &
From that standpoint it would
Co. ceased on Dec. 31.1
\<'1
TO CONTROL THE SIZE OF SPREADS OR PROFITS OR it is hard to believe the transition
be wrong to consider the prospec¬
problem can have more than sec¬
; Frederick A. Lockwood, mem¬
TO COMPEL A DEALER TO TELL HIS CUSTOMERS THE
tive drop in food prices as bear¬ ber of the
ondary importance. All economic
Exchange, and a gen¬
ish
on
the
general
situation. eral partner in
INSIDE OR WHOLESALE
MARKET
Lockwood, Peck &
PRICE BEFORE precedents are against a major
Rather it helps restore balance
depression originating in the soft
Co., became a limited partner as
EFFECTING TRANSACTIONS FOR THEM.'
and stability, maintain real pur¬
•7^,/
of Jan. 1.
goods industries, for by their na¬
- ,
I.
ture their cycle of decline and chasing power, and support trade.
Lewis W. Feick retired from
in

non-durables.

fVaess-Gummings Admit
Thielbar

Partner

Naess &

Cummings, investment
counselor
firm,
announce
that
Henry B. Thielbar has been ad¬
mitted to partnership in the firm.
Mr.

Thelbar

became

associated

with the firm last March upon

release from active

his

duty with the

U. S. Naval Reserve. Prior to the
war

was

investment

for

some

advisory

time in the

department

of Alex. Brown & Sons in Balti¬
more,

Lehmann & Verace Admit
Lehmann

Verace, 1
Wall
Street, New York City, members
of the New York Curb Exchange,
have admitted Frederick W.
Klingebiel to partnership.

short one. When
Lower Unit Costs Needed {<i
production is mak¬
'•:? The second way to bring down
ing a full contribution to income
and
purchasing power, * adjust¬ living costs relative to income is
ments in non-durables make only to improve the efficiency of in¬
dustrial output, reduce unit costs
a minor impression on the general
of industrial products, and pass
situation. '
w; • ■
•;;

recovery

durable goods

the
Food Prices and Living Costs

Storrow With Blair & Co.
BOSTON, MASS.—Blair & Co.,
Inc.

announces

Storrow,
Freres

that

formerly
Co.,

with them in

Thomas

with

now

Lazard

associated

their Boston

50: State Street^ ~ -«g

office,

Another preview of an adjust¬
that is likely to go further

ment

saving along in lower prices

in: which
To

everyone

bring this about is

in 1947 has been

urgent; problem

food markets.

and labor

given in certain
It is now generally

agreed that the peak in farm and
prices has been seen, and

can

the most

management

in11947, and the extent

which it may

or may

food

that

further

declines

are

expected, possibly; even before/the

share.

not be

accomplished. is the year's, greatocj? pni^ma

*** 4*

** **

partnership

Riter

&/Co.

Dec. 31.

on
*

Exchange Sponsors Special
Services at Trinity Church
/ On

Wednesday, Jan. 8, the New
Exchange community
sponsored the first of a series of
special services in Trinity Church,

York Stock

Broadway

the

head

Wall

Street, as a tribute to the Ex¬
change's
distinguished neighbor
as it enters upon its 250th
anni¬
versary .year.. The service lasted
about 30

ivri-;

■

yolume 165

Number 4558

THE COMMERCIAIi & FINANCIAL'CHRONICLE
r\.

16#

l*L

cabinet

stature, coordinating "equalization"? Why not a direct,
supervising all welfare activi¬ flat-rate
bonus
grant ^.tp
the
and services, is one of the
needier states? On the other hand,
leading steps to ultimate Federal if the equalization formula is to
greater per capita increases In
Federal: aid have already gone td domination of. this function* ••.
; assist the poorer states because of
the "poorer" states. What then is
general fiscal inadequacy, why tie
Federal Aid Becoming An
to determine if more differentia¬
the grant in to a welfare base?
Encroachment
tion is/needed, and how much
Why not a general Federal for¬
more?
4 Regarding the subject of Fed¬ mula for the redistribution of
eral aid for public
assistance, it is state fiscal resources and unre¬
Does The Formula Work A;Z
abundantly -clear that the en¬ stricted grants-in-aid?
;! Finally, there is the technical croachment of the
If the states are to continue in
Federal gov¬
question of the formula itself. As¬ ernment into this state function Federal fiscal bondage, the only
suming now, that grants are to be has widened
decidedly, and is on way left for them to maintain any
allocated according to need, that the
way to becoming greater. The independence,
or
to ; exerciseis, more to the poor states, does states are being more and
choice with regard to internal
more in¬
the
equalization formula effect volved, as their own relief
management, is to sue for the,
expen¬
this? The answer is no; the vari¬ ditures
increase, in a burden over right of unrestricted grants—even
and

ties

; (Continued from
page 126)
Congress added grants for
airport
construction, for hospital

make

surveys

and

construction,

and

for

profit" school lunches,

the lower per

capita incomes are
higher amount of Fed¬

funds

capita.

per

words, the grants

are

"variable."

the Federal

cause

has been

ble

new

important

Security Agency
varia¬

formula for public assistance

grants for

some

time, and will

percentage increases

Far West
U. S.

1™*.

.-AA..---—-ZIZI:

Average

...

general
effect
would
"lows" in New England and

the

seaboard.;

the

other

■

100

5.54.

States,

show

not: Ohly^ih

creases

Income Payment

capita
$1,381
New York:——41,595
Nevada
1,243
Connecticut —1,449
California
1,480
New Jersey
*
1,373
^
Delaware

1940
54

-w—

•

number

states.

■;

Georgia
Kentucky

3.72

84
71

7.51

4.96
5.60

700

161

160

556

175

4.48

It is obvious that the movement
is toward the
average,
extremes.
is

shift

ing

to' the

policy

•

such

tions in

state"
a

implicit

The rich are not getting
richer while the poor get poorer.
In regard to the changes in Fed¬

ism changing or
equalizing those
conditions
by
the
manner
in
which tax money collected from

eral aid, the significant factor is
the increase of aid to the so-called

the

poorer states, and the decrease or
minimum increase to the richer

Within this question of prin¬
ciple is another question, for the

states.

In fact, what the variable
grant would be expected to bring
about is

already well under

way,

without the variable formula.

equalizing, redistributing
has already occurred.

effect

The Question of the Variable
Grant

states >

was

variable
a

grant

needs-budget, comprise the

have to

several questions.

answer

first

is, should the Federal
Government allocate funds ac¬
cording to the relative needs of
the

states?

substitute
essential

Or,
a

we going to
concept for the

are

new

premise

the

Social

Security Act in regard to health
and welfare grants?
This premise
is in the first sentence of; each
title

establishing such grants-in-

aid.
are

provides

"for the

that

the

grants

of enabling
each state to furnish financial as¬
sistance (or to extend and
purpose

improve

services)
der

the

far

practicable

un¬

conditions in such state."

(Italics supplied.) The principle of

need

the

really

years,"

There

that is,

the

lowest.

are

large surpluses in the
highway
and
postwar

general,
funds

of the states.
Employment
throughout the country, except
for strikes, is higher than it has
ever

been. The attainment of Mr.

average

case

excess

states,

nor

funds to the poor;
for sizable

allows

case

payment and

loads in those

states.

The

would be increased from 44.9 %

factors

states

general effect, is merely that of
increasing the over-all Federal
participation. In the 16 rich
states,
Federal
participation

means-

fiscal. need

the

states the*
payment is lower.

"poor"

payment. (It is significant, however, that more than half of
the * "poor" states made case
payments above the U. S. aver¬
age.)
Fourth,
the result
of
the
formula thus is not what is ex¬

case

ade¬

Federal aid? The debt
situation in the states has been
referred to as "the best it has been

to 50%; and in the 32
poor
states; from 48.7% to 55.7%. (It
is interesting that in no states
is the 75 % maximum participa¬
tion reached.)
^
;
The

problem

of
the
relates it¬

variable

grant thus
self to matters of a more general
than the individual state

nature

caseload

the

first

faced

case

payment. One of

considerations
whether

not

public
assistance is to continue primarily
as

state and local function. Al¬

ready

since

above the half-way mark. Under
equalization formulae the half-way
mark
becomes
the
minimum.

goal of 60 million jobs
has been conceded. The per
capita
income of the states has doubled
1940.

individual
average

of these

There

were

states; in

was

only

which

16
this

not

were

attained, and 13
among the highest

And
to

Federal

formula

provide
case

participation

were

substantial

devised

increases

payments and to allow at

income states in the
country. The

the

greatest

load, then controlling responsibil¬
ity would be assumed by the Fed¬

income

increases

in the so-called poor states.

has

been

were

And,

pointed "out; "k the

variable

grant

administrative gift
needs to be looked

which

Municipals

bonds would be governed by the
supply of material, and: labor,

$18,757,000 by the Port of New
44 York Authority. A'A,;'.
^:
Some of the moneys would be $19,750,000 by the Los Angeles,
Calif. Dept. of Water & Power
expended by the Federal Govern¬
X:
—Electric Plant Ref.
; A :.
ment, a certain amount of casH
■;
would be made available
by the $30,000,000 by the Delaware River
■

same

time

would

be issued

increase in

case«

eral government. The pressure, to
establish a single Federal" agency

finance

Joint Comm.

Municipalities and less than $4,000,000,000
of
Municipal bonds

*'AA4;:AA'A

$10,000,000 by the Seattle, Wash,
v A; School District.
;
■

the

municipal improvements. When it

$29,100,000 by Philadelphia, Pa.
is considered that ~
Municipalities $15,000,000 by California.
retire close t6 a "$1,000,000,000 of $10,000,000 by Los Angeles, Calif.
debt a year and the
large amount $16,050,000 by Massachusetts.
of investment
by the Sacramento,
money which is, or $10,500,000
shall be available, the market in
Calif. Mun. Utility Dist.
Municipals has overdiscounted the $20,000,000 by Rhode Island.
•

increase in supply as well as"
pected ta.x reductions/
;

Interest rates

curities have
the price of

government

ex¬

se¬

great bearing upon

Municipal bonds. Most

econorqipts ;dd not feel: that there
will

$46,000,000 by the Pennsylvania
State Tpke. Ref. Rev.

$23,200,000 by the City of Balti¬
more, Md,
$10,000,000 by the Chicago,
Sanitary District.;*■ A

111 A

■

great

coming

years

change

the

over

;

in the interest'rate.

The Boren Bill, which received
the attention of Municipal dealers
and'; Municipal - officers is
ex¬

pected to be taken up during 1947.
Such a bill will keep the Secur¬
ities and Exchange Commission
from its control in either the
pur¬
chase or sale of Municipal' and

government
securities
United States.

William Raffel Forms
Own Investment Firm
PHILADELPHIA, PA. — Wil-I
Raffel is forming Raffel &

liam

the
.

The volume of Municipal and
state securities issued during 1946
was close
to $1.2 million,.; being
larger than the last five years
and considerably lower than 1940.
There was not a single default

during the

year.

The

Municipal Officers Associa¬
tion statement made to Municipal
officials concerned itself with fi¬
and

nances
revenue

entire

Wallace's

the variable grant is in basic
'con-* as'

assistance,; What

the

increases

test which determines whether or
not
an, individual
will
receive
.measure

The

quate "means-test" for state need?
variety" of known factors, fi¬
nally combined into a scientific

states?

Congress will ultimately

fective

assumes

jin state needs. What is

the

new

concept

assuror

pected. It, neither provides ef¬

best

the

real and measurable difference

facing the increasing fiscal signifi¬
states,

and

•

public

of Federal aid to the

reallocated

given back to them.

To go back now to the question
of the variable .grant itself.
In
cance

the

than

would logi¬

jeases^

grants; and in ,15

case

average case

•Federal mechan¬

work.,

new

smaller

in that clause. "Under the condi¬

cally preclude

for

increase in the level of
case
payments,- the ^caseloads
could be increased 4.4% in the
16 rich states and 7.8% in the
32 poor states. This greater in¬
crease
in
the
poor
states is
logical, of course, since the dis¬
tribution
of some • $20,000,000
will go further when given in

416.1
419,5

4.48

tradiction

away from
other
words,

equalizing

to allow
i

432.5

4.84

Mississippi

month could hardly be
;of much "equalizing" value. ? ; V
i; Third, if. the excess is applied

453.0

654

Arkansas

horse

the

now,

(Continued from page 124)

efA;

case per

440.8

132

states and $1.82 for the 32 poor
states. This 90
difference per.
.

434.4

4.59

663

—

137

stands

The Past Year in

states,

over

case payment increase of
a month in the 16 rich

$1.73

—23.0

139

determined

;j for > a

4 9.3

2.75

dollars, spread

half million

—21.2

745

Carolina
Alabama

the

■'■46.1

•

see

that

income

low

Second, if the excess is, ap-;
plied to 1945 caseloads,* the
: spending
of funds would allow

0.0

14.06

One and

fective agent of "equalization."

4.3

735

South

there

•

need

could not be considered

1940

3.67

;

If the aim is to

must be met by a reliable method
of
allocation.
All in
all, as it

squarely in the mouth.

only

% from

questionable.

Whatever

seriously

formula? In fact, why bother with

that

capita
$6.49

then, one of the
questions before the
new
Congress is Federal aid bymeans of variable grants. And if
the principle is accepted, an ade¬
quate means-test must be found.
important

challenge, but the

effect of its operation is

In; summary

:+•

ments. Not only is the need for a
variable grant formula for all the
states open to

Federal

excess

;

per capita in¬

1945 per

ma¬

widened;

responsible forconspicuous re¬
straint in; state assistance; pay¬

million for
high income states, and
$23.0 million for double

—i—Federal Aid-*--?*

% above

has

very

of mind

1945 would be $21.5

treme,, their poor relations/ the "poorest" states.
1945 per

eyes, the welfare state
is, turning into the wel¬
fare state. '
..A.. A A; 4
y A;.
our

formula

the

for the six'"richest" and the six

ex-

increased

likeness*

day. Before

every

the poorer states are
given
larger assistance payments, why
include the richer states in the

First, the

payments, but in Federal
aid, too.
This
general result
is
seen
rather sharply in actual
state-bystate changes.
Ranking the states
according to 1940 per capita in¬
come payment, here's- the
picture

the

have

eligibility

coincidence. It is

growing closer

funds provided by this formula
over
those actually granted in

come

traditionally "rich" Atlan¬
At

7.90

grants

terially;

been

mere

low-income

Federal maximums have not been

expenditures for old-age
assistance, the results are most
illurhinating:

'[highs," with unusually high in¬

East.
Both regions had
the least increase in income
pay¬
ments, and both had definite de¬
creases in Federal aid. These
areas
tic

5.24

9,16

Middle

are

101

143

Southern

per

for

427.6
444.2
4 2.14
4 7.3
4 5.3
4 9.5

the

woefully inadequate.".:. Assist¬

ance

tual 1945

7.44

national

Security Com¬
Altmeyer's contention

states assistance has continued
be

capita, and
states having
average
or
above.

average

—10.9

1940

4.90

conformity of patterns
would show
clearly if the data
were done in
weather-map style.

wholly sub¬

Social

"in most of

individual relief

recipient
privileged by
unretricted assistance payments. The
parallel between the individual
recipient and a state unduly de¬
pendent on Federal support is not

questioning the need for
this great volume of Federal aid.
The record does not

that

the

has

dence

stantiate

the

—16.4

127
;

the

below

income

3.62

136

The

national

% from

capita *•
$4.93

761

1,217
MOl
1,443
1,150

•

are

capita

per

which they are having less and less
voice. There is substantial evi¬

missioner

When this formula is applied on a
state' by state . basis, with 1944
per capita income data and ac¬

1945 per

906

Central

Northwest

1940

over

-/■Federal Aid—A

Payment
1945 per
% above
1940
capita
78
$1,288
82
1,370

Southeast 4.4.ASouthwest

it is purported to do. It is not the

Robinhood formula. A;;, 4;;
This is demonstrated by apply¬

providing 50%

Income

New England
Middle East

able mechanism does not do what

also given.

ing the formula to actual grants.
The formula most frequently used
in proposed legislation ^over the
past few years has been one limit¬
this period, the 1945 regional per
ing Federal participation to 75%
capita income payments and, their pf expenditures for states having

Congress be¬

recommending

•

change for the country as a whole,
from 1940 to 1945, can be seen
most easily' on a regional basis.
Because these changes follow in
general the pattern of increases in
per capital income payments over

the

totaled $401 mil¬

But the total picture of Federal
aid ought to be shown first.
The

of a variable
grant is not new, this is the first
time in our
history that a specifi¬
cally defined variable formula has
been legislated.

factor for

Federal aid.

other

Although the idea

% This Precedent is

now.

rity (health, welfare, employment
security)
accounted" for
over
71.5% of Federal aid in 1945, to¬
talling $522 million. The variable
formula is therefore a large-scale
question in the total" picture of

allowed
eral

efforts

lion out of $730 million, or 54.9%.
All grants related to social secu¬

lunch grants
allocated to the states
on a formula
which takes into ac¬
count the relative
needs of the
states. : That
is, the states with
to

its

over

1945 these grants

And therein lies the
"something
new" facing the
80th Congress.
Both the hospital and

are ;

■

alone now
half the entire to¬
Federal grants: in fiscal

tal

"non¬

increase

doubt

Public assistance grants

recommended

that

provided for the re¬
payment of loans contemplated.
It

was

been

noted that

created

have

trend
the

had

states

William Raffel
J

V-Zt'<.

Co.

4'A'r' J-i14'

with

;'Z-

r\A

offices

Broad Street. Mr. Raffel

states

fel &

thus

pay

the

expenses

schools and highways. The gaso¬
line, automobile license plates and

liquor

taxes

source

burden

Income
which

are

important
relieving the

income,

real estate.

taxes

should

may

leave

be reduced
more

funds

available for investments.
The following are the important
Municipal Bond issues underwrit¬

ten in 1946:"

viously

• •

■■

South

123

collect certain taxes and distribute
them to the Municipalities. Many

was

pre¬

partner in Collom, Raf¬

Co.

Baumanii and Roth Willi

Hay, Fales & Co.
Hay, Fales & Co., 71 Broadway,
York City, members of the

New

nounce

Stock Exchange, an¬
that Jerome Baumann and

Milton

Roth have become

New

ated

York

with

their

firm.

$15,000,000 by the Maine Turnpike previously partners in
*
Authority.
';:j :AA:;A A'; • AA / Low.
•

associ¬

Both

were

Jacobs

THE COMMERCIAL &

170

New York Institute of

; v!!;> Observations
•

(Continued from page 125)

•/:

1947

Glasgow—Second

Finance Spring Term

Thursday, January 9,

FINANCIAL CHRONICLE

lit City of the Empire

The New York Institute of Fi¬
'meeting, the victors are basically jockeying between themselves for
advantages, instead of acting concertedly against a common enemy. nance, 20 Broad Street, New York
(Continued from page 130)
Thus, the Russians have been interpreting the Potsdam agreement as City, has announced the curricuum
for
its Spring
Term. The tages and disadvantages. To many results in industry, judged both •
giving them permission systematically to strip its occupation zones
manufacturers the former include
jy the quantity pf pr0ductiou;ah4
;
.'
of production machinery as well as natural resources.
Despite the courses offered are;
Accounting Principles I, under labor and good factory buildings jy its quality,'
clearly stated provisions, previously agreed to, that "during the period
at reasonable rentals. ,: The dis¬
of occupation Germany shall be treated as an economic unit," the Melvin G. Ott, Robert Winthrop
,■
The Tobacco apd Textile
than is
&
Co.
and Samuel'- P.
Lisman, advantages are fewer
Soviet has extracted reparations in her own way by moving factories
Industries
1
Indeed, al¬
Auditor of the New York State sometimes supposed.
—along with technicians—into the interior of her own country.
Three large factories, all mod- ,
lusions are occasionally, made to
Department of Labor.
Thus the first move will consist of maneuvering the Russians back
ern
in construction, are engaged v#
Accounting Principles II:r Je¬ some which are actually based
within the bounds of the agreed-to contract at Potsdam. ;
f
'
upon incorrect assumptions, Four in the tobacco trade, while there
rome J. Kern.
As is all-too-clearly getting to be Soviet practice, it is in this in¬
Business Economics: Louis
H. misconceptions in particular stand are other survivals from the past , |
stance also going to be necessary to bargain with concessions in
out and should perhaps > receive such as clay tobacco pipes, most ,
Whitehead, Louis H. Whitehead
order to get the Russians merely to live up to their previous agree¬
first consideration.
It has been of those used in the world—the /
Co.
.

wise, Moscow can afford to be extremely indepen¬
has 62% of Germany's total food supply, thus
enabling her actually to remove food out of the country for her own
benefit; in contrast to the converse British status of having to support

ment.

And in this

dent, for her

own zone

the Germans in their zone, at an annual cost

of $300,000,000.

Business

Brodsky,
Seligman

Irwin'

Finance:

Legal
& Co.

Advisor,

said that:
1.

William K.

Glasgow

Vice-President of First
ational Associates of Florida, Inc.

ugly

squalid,

place;

Money and Credit:
de

■■y"'

#:#■;,:# #'#v

Glasgow

workpeople

are

"difficult";

Veer,

Four may
;
3. Glasgow has exceptionally bad
have to pay Russia for living up to her agreement to administer
Work of the Stock Exchange
weather;
<
Germany sanely as an overall economic unit, is to permit her to take
and Brokerage Office Procedure: 4.
Glasgow is a long way froih the
reparations from current production. This, just as in Italy, would be
John) H.' Schwieger, Department
an extremely costly concession to make, both on principle and mate¬
chief centers of, distribution.
of
Member ? Firms,. New
York
rially—as it would represent our feeding sustenance in at one end,
: These beliefs are unjustified.
Stock Exchange;
A. P.: Morris,
with the Russians doing the extracting at the other.
Also because of the real necessity for ideological placidity, the Estabrook Sc Co.; and George W. Glasgow as a Distributing Center
Elwell, Hicks & Price.
present concurrent quadripartite economic systems must be unified.
Judged by' American standards,
The United States within its bounds of influence, is pushing capitalis¬
Work of the Order Department: Glasgow's distances, from London
tic free enterprise; the British in Germany are pushing their socialist Fred W. Hansen; Pershing & Co. of 350 miles, from Birmingham of
techniques; the Russians are pushing for an all-over Marxist Ger^
Advanced
Margin
Problems 250 miles, from Manchester of 180
many; while French aims have consisted of a varying hodge-podge.
Paul C. Fitzgerald, Hirsch & Co. ipiles, and from Newcastle: of 125
miles, seem small.
Nevertheless,
Work qf the P. & S. Depart¬
the .separation front, in particular,
Territorial; Problems
ment: Carl Dreyer, D. H. Ellis
t^omipn's market of eight million
Neither did the Potsdam agreement, formulated under changing
& Co.
>4)
/##
people i§ apparently regarded by
leadership in both England and the United States, provide definitive
Work of the Cashier's Depart¬ some manufacturers as discouragsolutions in the political sphere. In the first place, despite the ideal¬
ment: George E. Rieber, Assistant
istic principles so solemnly proclaimed in the Atlantic Charter, and
Secretary, District No. 13, Nation¬
even contravening the "appeasy" Yalta arrangement, the British and
Glasgow has, however, much to
Americans at Potsdam acceded to a great, inexcusable grab of terri¬ al Association of Securities Deal¬ offer on its own account.
It Is not
One

price that the other three countries of the Big

tory in Eastern Germany by the Poles and Russians. ' "Subject to
final determination at the Peace Conference,"; Poland here tempo¬

ers,

Inc.

the marketing center for
Accounting Background for Se¬ Scotland,; with its population^ Of
curity Analysis: Albert P. Squier, over five million, but for both
Security Analysis I and II (two North and South Ireland also, and
terms): Carl C. Adsif, Blair & for the northern fringe of Engonly

Prussia,
but also most of Pomerania, Lower Silesia, and portions of Brand¬
enburg. These sections at the. time were occupied by nine million
Germans, and produced food supporting one-quarter of Germany's Co.; Herman j.* Borneman# New
entire population. Additionally, the upper half of East Prussia was York Stock Exchange; Joseph V.
taken by Stalin.
' •
;
^
/ Franchini, J. R. Timmins & Co.;
#-,■ . Before and since these grabs, American policy, although definite Sidney B. Lurie, Faine, Webber,
about the Western frontiers, has been vacillating and hazy about the Jackson & Curtis; Charles F. X.
East—an impression which was reinforced by then Secretary Byrnes' McGolrick, Charles Clark & Co.;
and Waltef S. Morris, Argus . Re¬
speech at Stuttgart.
In any event, American reminders that the
Russian-Polish annexation was supposed at most to be a temporary search Corp.
|
.
arrangement-'subject tofc. final-determination, was aggressively an? if Mfestment# Account# Manager
swered .by Mr. Molotov last September. He admitted that the 'new ment Stephen M. Jaquith,- Invest¬
Polish-German frontier represented only a temporary arrangement; ors Counsel, Inc.
rarily "stole" from Germany not only Upper Silesia and East

but also insisted that the annexations were now de facto and could
not

be undone,

meanwhile been
Fait accompli, coup d'etat

because the populations which had

expelled, now could not be moved back.
technique!
*"
'■'# ■■■■■':< "-, .•*

;

The Nettlesome Status of France

Again the Controversial French are with us! France did not sign
the Potsdam agreement; hence she is in the advantageously ambigu¬
ous status of not being bound thereby, but able, to veto any of its
provisions. The vacillations of United States and France until recent
months resulted in a situation jof Russia knowing what they wanted
and "making hay while the sun shone";" and France, knowing what
they did not want, obstructing plans; objectionable to them.

lfand—-hence
Went

for

the struggle which
many decades be¬

tween retailers and

wholesalers in

Glasgow and in Manchester, over
which was to be the principal dis¬

tributing center of thef country
putside London.
>
•
'
;
The port of Glasgow is in itself
asset for manufacturers.
of the leading harbors in
the world, with shipping facilities
great

It is

one

to Oil countries, and it is, ' inci¬
Analysis of Public Utility Hold¬
dentally, also much used by coast¬
Co. Securities; W. Truslow
al vessels.
The Clyde Navigation
Hyde, Jr., Josephthal & Co.
Trustees claim that Glasgow is
Analysis of Hailroad Securities: the; cheapest and the most effi-*
Fierre R. Bretey, Baker, Weeks piehtly run of all of the large
L

ing

& Harden*

ports in the country.

J: Current Developments in Util?

made

still large—being
Clydeside is

Glasgow.

„

not only a center for sugar refin.
ing, but is well known for its con:
fectionery, biscuits, cakes, syrup ;

jam.
In recent times it has
specialized in some manufactured
and

coffee

cornflour, .
qustajd; phwj^r* ';

including

foodstuffs,

essence,

and canned soups.

•

The textile, industries are jstil! ;
very strongly represented in the
district.; The Paisley cotton thread
mills
and - the Johnstone linen :
thread mills are of international importance. The; cotton industry :
weaves large quantities of shirt- :
ings—it is often forgotten that !
household words, like gingham
;

;

and izephyiv are really Glasgow .
trade-names — Window hollsnds, "
mu§lins and laces. An interesting

point is that the export of squares
of muslin to the Middle East " is
still considerable, and that the
flowing
headdresses of> the
Sheikhs of Araby actually come
from the East-End of Glasgow.

:\;
'

Clydeside #
is perhaps better-known for its''
Woolens,
the. largest carpets •
weaving company in the Empire >.
has its works in Glasgow, arid' I
severaT other firms in the district
are also engaged in this section -*;
of the Industry,
In addition to
other branches of weaving and
spinning--including the distribu- , f
tion of yarns to the ipwblio—knit^:;
ting hosiery has become a major/#
employer of labor.
Several firms ;
specialize
in making women'? # ;•
outer wear, and one plays a leadr«J;
ing part in setting the world'^ *. v
Nowadays, however,

fashions. Associated

with the tex¬

tile industry' isigarment^making,";
another. large Glasgow industry -;;
and one- noted for some > of its re¬
model factory

buildings, and dye.^,

ing and finishing.

Glasgow Workpeople

ities:; Harold H. Young, Eastman

export market is

The other source of

the diver- -

i
Less working time is lost in the sification of the; Clydeside indus¬
tries .has been the requirements •
Se? Glasgow district through indusr
trial disputes than in a good many of shipbuilding, /j^hips, once jthey;.f"
lected Industries: Oil, E. L. Ken¬
other parts of the country. For ex¬ are at sea, have to be self-con-; J
nedy,
Lehman
Brothers; Steel,
The, main trouble vis-a-vis not 'only France, but the entire sit¬
ample, during the war years the tained—that is to say, they have - ,;
Oscar M. Miller, General Ameri¬
number of days lost per worker to be fitted out as hotels and, for- j.
uation, lies with French intentions toward the Saar. % Prompted by
can Investors Co., Inc.; Aviation,
in Scotland through industrial dis¬ large modern liners, to provide all
vengeance, economic need, and fear (reinforced by her realization of
Edmund G. Blackburn, Hornblow
of the services available in the,
being nationally outnumbered, three-to-two); France is making all
putes was 1,46, while in ; Great
er & Weeks; Automobile^ Malcolm
finest of hotels. Accordingly, com^ K
Britain as a whole it was 1.54.
plans for insistence on annexing this territory. Already—two months
D. Brown, R. W. Pressprich & Co.;
panies had in the past opportuni¬
before the Moscow Conference—the French have unilaterally set
Although many of the variations
Construction, J. M. G a 1 a n i s,
ties fpr supplying all
of these;; •
up a customs barrier separating the district from the rest of Germany,
in character between the peoples
Shields & Co.
things locally, i Many of those *:
and have made all kinds of particular intra-zone rules, warranting
pf the various British districts
Commodity Trading Principles:
companies which grew up with#
Russian and general criticism for being a major step toward de facto
have been "ironed out"—perhaps
the shipbuilding industry did not ;
annexation.
The Saar, contrary to popular impression, is inhabited Victor J*. Lea, Standard Brands,
unfortunately^ in .recent, times,
expand outside its confines, but#
Inc.
over 99% by Germans, and the rich coal mines were the property of
some of thp older traditions per¬
some did, and so several famous;:
the German state.
These mines are now being efficiently run by
Correspondence Courses are sist on Clydeside,
For instance,
French mine managers who conducted them when the territory was also offered in "Work of the Stock Glasgow workers are still perhaps companies; founded toVmake,: for-) ■
under the League of Nations
Exchange and Brokerage ; Office slightly ; b e t t e r educated; than instance, boilers, sanitary equip--.
mandptp pending the J935 plebiscite,
ment,
cranes,
scientific instru¬
Procedure" and "Investment and
pmany other workers (in Scotland
ments, and air conditioning plants'#
Security Analysis."
; ####:.. ^
the compulsory school leaving age
J ;t
German Representation and Responsibility ; .
for ships, have in the passing of >;
Not the least of the question?' that will have to be settled at
Transcripts of lectures by Ben? was raised to 14 as long ago as
time extended their aqtivitie^ oyej^#
Moscow, is the securing of German representatives to sign a final jamin Graham on Current Prob¬ 1883; in England the compulsory a much wider field.
i- ## • J #
in
Security Analysis ; are age in 1880 was, age 10; 1893, age
document, particularly if its provisions are as inequitable as now lems
1 Apart from these industries
seems indicated.
Even apart from the latter factor; it must be re¬ available at a cost of $7.50 per 11;1899, age 12; and 1900, age 14):
those which have their rpot§
i
membered that the country has no national government—the German set (first five lecture transcripts and they are to some extent still
the past, other industries, not in^-/
imbued with their grandfathers'
"government" consisting of an agglutinative collection of separate available in January,-.last five
digenpus to piydeside? have comeupon completion pf;the ,course1 in spirit of craftsmanship. They ar®
si#te governments. And for tfie Allfes to rig UP P German group tq go March, 1947).
as
in- other larger
cautious, slow to learri new |n- into being
g# ,
> / "
through the mechanical motions of mechanically affixing their sig
jdustriai skills, but thorough, out- towns—and add to tjie variety of#
Also available at a cost of $1.00
natures to a document handed to them, would constitute a final is a booklet of "Educational Tests Spoken and inclined to be argu¬
industrial Enterprise tq be; foupdf, #
V- »
'
additional caricature of democratic procedure! u for New York
Stock Exchange mentative,v ,
pn Clyde^ide^rfor instance# b^93tsi i
Their ^ ; independent
ways r ol
Member Firm Employees." :
thinking lead them.; to. responc shoes, and, in particular, chrome. \
-JUP:,..'
m,.....-i—r r;
much a better to I some : kinds pf
•;
managers than to others—compa¬ industrial rubber; articles; paints.;
With Chas. E- Bailey Co.
nies
establishing^ factories ; in
(Special to The Financial Chronicle)
and varnishes; Vbright" bolts ahd'; J
Southwest Scotland should give
DETROIT,
MICH.
Isadore
nuts; soap;;: matches; > firebricks;/ ;
particular thought to choosing the
PHILADELPHIA,
PA; — Van Banks has become associated with
Nathan Shaer has been admitted
aluminum foil; aluminum kitchen' #
most suitable men from " their
to partnership in Hart Smith & Alstyne,. Noel & Co., members of Charles E, Bailey & Co., Penob¬
scot
Building/ members of the staffs for serving as managers of utensils; wood pulp container,?;;;
Co., 52 William Street, New York the. New York Stock Exchange,
medical drugs; pottery; and yarir];
In the
announces that Paul Jones, Jr. Detroit Stock Exchange,
their; Scottish undertakings-rbut,
City. Mr. Shaer has been with the
has been appointed Manager in past, Mr. Bank? was with Whit*
ler
...
uhder proper .administration, they I pus chemicals, including j,
'*! firm for gome time in the Cana¬
charge of the firm's Philadelphia Jock. Smith & Co. and George
mn •be led:^-?&
F. W. Reid &
dian securities department.
.# office, 1500 Walnut Street;
;

Dillon

& Co.

Current

Developments

•

■

Harl Smith & Co. Admits

Nathan Shaer to Firm

J^herihj^^^leatl^

.of

Van Alsfyne fn Phita.

exp|p-

•

■

,v-' *"

I'.,';.; /'.v.';

■;

••••••

v#,

■;

!1I

>,
;■

■ft

■■

c 1

i I

Dt - ' ^

{ J ot

Volume 165

"Number 4558
♦

THE COMMERCIAL & FINANCIAL CHRONICLE

' 1

Roosevelt's New Deal Revealed

put into bankruptcy.". While
tried to reassure Nor¬
man, Mr. Roosevelt and Morgenhauriooked at each other, pictur¬
Harrison

Biggest
Market Manipulator in History

(Continued from page
127)
In his Diary Mr.
Morgenthau con¬
fided,1 "I was a pretty sick
boy
•when this
happened. It seemed to
me as
though I was trying to hold
up -not only- the
commodity mar-

from

a wealthy Connecticut fam¬
ily. In his youth he had served as
private
secretary
to
Supreme

press

this,-he '\yas; elated, "Squeeze the
fife but; of 'the
shqrts,"; he said
with fight in: his;
yoice; "and put
the

price

can"

just

•

Beginning

you

Juggling the

Gold Price

Mr.

Morgenthau goes into a
great deal concerning Mr. Roose¬

gold-buying

paign the President had been

Edward

Exchange

Werle,

Johnson

Wood,

cam¬

Vice-Chairman
of
the
Governors of the New
York Curb Exchange for the past
Board

con¬

•V. The

President is represented
more and more

having relied

!
as
on

aent's
room.

Mr.

Roosevelt
on

his narrow,

Morgenthau-, They - were old with
friepds^ They had met over a rail hard
fence; in Duchess County a decadp Next
had
cam-paigned with Roosevelt in New
Yprk State and had worked with

its

thin
him

table

which

kept:

pirin,

he can get

p e

"Acheson
Acheson
mouth

notes,
cigarettes, his
watch, and a
memo

Jesse

Chairman

opened

Mr.

board.

Werle

will

The

headed

was

succeed

Mr.

Pres¬

two

years. Mr. Posner becomes a
Class A Governor for i a term of

throughout

the meeting.
this period he

H, Jones

the

ident pro tern as well as Chairman
of the Curb Exchange for the
past

Light-Weight"—FDR

hardly

nominating committee
by Milton E. Reiner.

Posner, who has served

out."

as¬

pencil,

xchange on Feb. 10, 1947, was
made public
by Edwin Posner,
Andrews, Posner & Rothschild,

three years.
,;
,
U
As announced at the

•

During most of
President's plans for gold.
year-end,
continued to follow his course of
was surrounded
Francis
Adams
by peo¬
Truslow,
New
ple who; he knew, opposed his couple of telephones. While the obeying the President's direct or¬ York
attorney, will take office as
of "Rubber Dol- policy.- He asked Morgenthau to President breakfasted, usually on ders, while making it clear that paid President of the Exchange on
ar,V Warren.
Professor Warren argued that see that the Treasury followed out his favorite of scrambled eggs, he disapproved of the policy. Mor
March 1, succeeding Mr. Posner,
his instructions on
the trio discussed the gold market genthau agreed that Acheson was whose term
farjn ^prices- were out of
gold.
" V •
expires on Feb. 9,
j
balance
a man of great
courage, hut that 1947.
because of,the
Under-Secretary Acheson; who reports from abroad. That first
change in the value
During the short interim be¬
headed the Treasury
of the gold
dollar. In 1933, twice
during Wood- day gold was selling at $31.02 in he; infuriated Roosevelt to the tween the two dates, Mr. Werle
in's sickness,
as much farm
quickly came into London and $31.09 in Paris. The point where the President re¬ will serve as President
produce was
velt's conversion to the

gold-price

nating committee for offices to be
filled at the annual election of the

boat," he warned. "If

same

anybody does not like the boat,

bath-

m-ty

r o o

in the

small

white

at least a surface
resemblance to

bed

mattress.

was'

him in

Albany.* Jn Washington,vh£
carrying out successfully the
grain-buying program, which had

sat

white

Mr.

before.Morgenthau

while.
A few days later he
spoke stirringly to his advisors of
the need for 10c cotton, 50c corn,
and 90c wheat by the first of the
year. The gold-buying campaign,
he said, was achieving this.
He
emphasized that it was an Ad¬
ministration policy. "We are all

oeu-

was

far

;

Fixed at
Breakfast-in-Bed '

the

firmly opposed to gold buying.

ser-

;

Gold Price

Of NY Curb

„

his job with as much
efficiency as
could have been
desired, he was

vices, and kept his fingers crossed.
Thq neWs\ was no sooner on the
ticker thatn .wheat
began • to climb
and continued
until Vit closed/jat
V4%. When the President -heard

en¬

Chairman of Board

every

on end
With horror.
Morgenthau began
o laugh.
The President roared.

stantly
handicapped
by
Dean
opposition.
Woodin's year, has been nominated to the
Oct. 25, the Presi* Acheson s
f
dent conferred with Morgenthau prolonged illness made it likely Chairmanship of the board for the
Mr. Morgenthau
reports that Mr. and Jesse Jones each morning to that he might never return, and ensuing year.
Roosevelt was to rue his
set the price of gold for the day.
policy
remained
jn
Acheson's
The nomination of Mr. Werle,
appoint¬
ment of Acheson. For
hands.
'
though the They ,-met in ~
together with the remainder of
new
The .President did nothing for the slate
the
Pr e s i
Under-Secretary swung into
proposed by the nomi¬

lic service.

Street and ''the general

politics because he felt it his
responsibility to be of useful pub¬

Brandeis.

with

^eir hairs standing

or!?,

During

tered

sary.
Mr.5 Morgenthau
placed a
standing order for all wheat offered, reported ,the news to Wall

Justice

Werle Nominated for

foreign bankers

ing

said, "and I feel for the first time
though I had thrown them off."

as
everything n was
sagging.", \
V Firmer measures were neces¬

Court

ice ts of the world but
also the stock

market, *

the

Roosevelt

•
■

J'uggling .theories

needed

to get the

;

same amount of

seven years

gold

was

doubled,

prices a$

gold as
before. If the price of
so

believed,

whole would also dou-

fele. Manipulating the
price of gold
eupposedly would give the
dollar

a more

constant .value in terms of

commodities.

;

Mr. Morgenthau reveals in
der
tail how he and his
chief, immedir
ntely after the inauguration, ^ bejgan to experiment with gold ma¬

;
.

conflict
with § Morgenthau.
He
argued that the whole gold busi¬

United States wanted to keep its

marked

price

slightly above the world
ness was illegal.
Morgenthau was market. Mr. Morgenthau suggested
adamant. Together
they went to $31.36 for the first day's price,

Treasury was.' a "heavyweight" while Acheson was only

the President. Acheson
again
raised the question of

27c

pro

the

Mr. Morgenthau asserted that
Mr. Acheson himself knew noth¬

see

legality.

Morgenthau , tartly * suggested
that all the
lawyers who had ideas
on the
subject be locked in a
room

above

the

Paris

rate, and
$1.56 over the first day's previous
American price. "All right," said

&? Q?r,fsid^ -"W Will
yOl.oD,

together until they came to. a
de¬

that

what he

needed

"light-weight."

Woodin,

were

under

"the

genial

guitar player," was
"conspicuous
by his absence." At one pf
the im¬
portant meetings on gold
buying,
Mr. Woodin was
represented only
by a yerse he sent to the
Presi¬
dent, illustrated by a well-known

of the general committee on trans¬

actions and the stock transactions
committee and

describing

how

furious.

opposed

our

bination of lucky numbers, etc., I

buying gold," he announced. "The think they would really be fright¬
ened."
President has ordered me to do it.
As

I will carry out his
orders"

the

United

price

States

gold

above

rose

the
the

world price, Mr. Morgenthau told

Speed Embarrassing

The speed with which the Board

approved the resolution was eni*

the President it was foolish to go
much further unless he began for¬

Acheson, the
present

intention to buy
newly-mined gold
in the United States at prices set

Un-

der-Secretary

by himself and his advisers. And,

Stated had
been made!

"whenever necessary," he
added,

Under-Secrpr
t

a r

hope

"we

in1 the.'
that he 1

y
i

would

act

In- the
u r

as •

e a

new

Stock

the

exchange firm of Wade, Temple& Co., then worked for two
for Morin S. Hare & Co.,

ton

beginning of

Dean G. Acheson

waxed

came

than gold, and Mr. Roosevelt

humor,

en my

was

grand

"P have had the shackles

hands for months now," he

terms

Norman

As it turned
out; "the President
enjoyed h: hirnself
tremendously
while Harrison notified
foreign
The

French

nearly
skins when

hew

government officials—great
small—probably no man ever
came out of Washington with such
a Diary as Henry
Morgenthau, Jr.
Nearly 900 volumes, all together
running pver a quarter of a mil¬
lion pages, comprise a record of
his 12 years in the Treasury.
Telephone conversations were

help

President called him.
"This
is the most terrible thing that has

happened," Norman wailed
the

ocean.

•

across

"The whole world will

board

Mr,

ihember.

are

Pershing & Co.; Benjamin H,

Hemphill, Noyes
nominated
B

Governors
a

for

Co. have

election
of

Curb4

the

three-year peripd.

E. R. McCormick of the firm or:

Streicher

J.
the

Ar¬

Co.

has

nomination

for

term

received

three-year

trustee of the

Gratuity

Fund of the Curb Exchange.

Avenue, N. W.,
Washington, D.C., under .the man¬
agement of Phil J. K. Reily. Also
the

Exchange for

York

soa£c Co., and Claude F. Leaman,

Washington, D. C.

associated

named in 1946 to fill

Van Keegan, of Frank C. Master*

New

Mr.

Cluett & Dana; Edward J. Cohan,

Warner Branch
C.—J.

board. (

Franklyn B. Boutelle, of Burton^

Class

1420

was

of the

current governors.

been

Mr. Bowler will be

Dyer and Mr. Wohlgemuth

recorder.

WASHINGTON,

Class A Governors of the

member

Shean

and

Exchange.

Cushing

fice will be Guy Campbell, Patrick i
C. Cronin, Earl McQueen, James
C. Patterson, E. D. Sampson, G. L. |

Roosevelt'

membership also names Edward J.
Bowler, of Wm. P. Hoffman &
Co.; Carl F. Cushing, of W. E. Bur^
net & Co.; James R. Dyer, of Dates
& Dyer, and Morton Wohlgemuth, ;
of
Ernst < &
Co., to three-year

and

the

partner of the

the unexpired term of Edward J.

the

hectic

Curb and became

measures.

with

the floor of the New York

firm, 'i/,
'
••
<)
Th e
Dominating committee's
slate presented to the exchange

Despite all the past memoirs of
the country's former Presidents

transcribed

Exchange until, in 1940, he
acquired his rqembership on the

tributiorl of gold and grain-buying
from the intricate complex of in¬

thur Warner & Co., Inc, announces
the opening of a branch office at

Morgenthau camped

firm
Curb

ac¬

jumped out of their
they heard the news.
But the
most startled reaction came when
Harrison
telephoned
Governor
Montague Norman of the Bank pf
England —- "old "pink whiskers,"

Mr.

appointed
salaried
employee
for
Aymar
Johnson, of Johnson & Wood, and
in that .capacity represented the
was

market

complished, at least in part, his
aim of giving the producer a bet¬
ter break. But it is impossible to
isolate and disentangle the con-

flationary

1923 joined the employ of
& Wood. \ In 1928, Mr.

Werle

were

Mr.

Under-Secretary.; He

job, and he

and in

Johnson

FDR Roars at "Pink Whiskers"

officials.

in the Cabinet
room, had a tele»

'•
{;;
tache, was jvist forty -when he be¬

came

and sell gold

rison was handling the
his way.

had

there

He quickly be¬

order clerk for the stock

years

the crop-curtail¬
ment program; the NRA; a public
works program; and other infla¬
tionary measures. Prices did go
up, even if somewhat more slowly
cies

Exchange.

came an

programs was difficult to deter¬
mine. For along with these poli¬

phone installed and kept track of
gold purchases for the President.

Acheson, tall, ',
blue-eyed,
curly hair, and v:

was

period.

ri,

with, reddish-

also buy

A Hectic Period

Treas-.v

y..D

shall

in the world market."

"strong: map"v

member of the

Acting Secretary would be executive, finance and arbitration
cision.
genthau and Jones met with Pres¬ Henry Morgenthau, Jr. *;
committees. He is also a director
"That's
With Morgenthau in the Treas
fine," Mr. Roosevelt ident Roosevelt to determine the
of the New York Curb
Exchange
laughed, "let them go to the At¬ price of gold for the day. The uryt Roosevelt felt free to con
Realty Associates, Inc.
V
tinue the program.
On Jan.. 30
torney G eneral's office/and do
important; thing was tp- keep th$
_._Mr. Werle began his career in
The* lawyers were pot confined trend
1934, the Gold Reserve Bill was Wall Street in 1919 as a
gradually upward, hoping
page boy
very' long before they decided that that commodity prices would fol¬ enacted, which fixed the Presi on the floor of the New York

Every morning after: that, Mor¬

eign exchange operations. Since
haji barrassing to Morgenthau.
The this was a job that required tech¬
caught cold from Jesse Jones. Be¬
nical skill, Governor George Har¬
questions raised by the RFC meni-%
fore settling down to serious bps!-?
rison of the Federal Reserve Bank
bers after the resolutions
had was
pess, the President read a take-off
put
in
charge.
Harrison
beep passed made it clear that
agreed, provided he had full au¬
on. the
poem, also about Jesse
they hadn't the slightest idea what thority. There was to be no in¬
Jones* pnd
everybody had a good the whole
thing was about. Ache* terference; if the President didn't
time except J ones.
like the way he handled it, he
spn at least understood the
pres¬
wopld resign.
Mr.. Acheson vs. Mr.
Roosevelt
ident's plans.: These men sipiply
Harrison was anxious first to
Mr» Morgenthau says that Mr. lacked the
courage to go against consult ; the
English
and
the
Roosevelt did .what he could to the
President.
French.
The President was less
strengthen the Treasury. On the
anxious.
On Sunday,
"Everytime we • have
advice of
October 22, the
Raymond Moley and
taken the English into our confi¬
Lewis Doug-' : .'
President in his fourth 'fireside
\'4
dence,"* he protested, "they have
las, ^ D e a n
chat" informed; the country of his
given us a trimming."
But Har¬

artist,

change. He is currently chairman

about his resignation until
reporters informed him thereof
and of the announcement that the
ing

matters

tern.

Curb * Ex-

the

Mr. Werle has been continuously
active in the affairs of the Ex¬

important

since July, 1940, and a':
Governor for the past three years,

nipulation. Then on June 5, .1933,
Congress declared "gold clauses"
in contracts
invalid- The price of
gold gradually increased from
the government was
dents power to devalue the dol¬
$20.67 to $29 an ounce. ^
.
.
.
legally em¬ low. ; '
; l
i.
lar and set the level between 50
powered to buy gold through the
Jn August, the
President plan*
A "Lucky Number" Price
and 60%.
Reconstruction Finance Corpora¬
tied to buy
By proclamation, the
newly mined* gold, at
tion.
over $29
The actual price on any given following day, Mr. Roosevelt fixed
an-ounce, but was hand!
Mr; Morgenthau
day made little difference. The the gold content at 15 5/21 grains
capped on the eve of. his
agrees
experi¬ Acheson's position showed a that amounts settled on were
ment by
generally nine-tenths fine, a reduction to
good
having as Secretary pf deal
of personal
the Treasury a sick
integrity, but arbitrary. One day, for instance, about 59.6%. This was equivalent
man.
During stood in the
to gold at $35 an ounce, the price
the banking
way of the President's the bedside conference decided on
crisis, William
in; had worked, hard and Woodp program. On one occasion Mj% a rise of 21c,* "It's a lucky num¬ at which it was stabilized.
But ill-health caused him. loyally. Roosevelt spoke to Morgenthau ber,"
the
President
remarked,
to. drop
Grain
Gold Programs
"because it's three times seven."
more
and more into
the back¬ just, before an RFC meeting on
Difficult to Appraise
Mr.- Morgenthau commented, "if
ground and the President
dared gold purchases. Acheson came in
Mr. Morgenthau held that the
not depend on him. One.
anybody ever knew how we really
news¬
to the meeting late
and obviously set the gold price through a com¬ effect of the grain and the gold
paper writer noted that
whenever

discussion,

member

change

In addition to Mr.

Reiner,

mem¬

bers of the nominating committee

Washington of¬ included Fred G. Gurke, William

Sampson and Abbott Ware.

„

TT«Pi„rtfl.

r\„«,-oc«

Hassmger, C. V. Quayle, Benfcmin H. Armstrong, O. Viking
Hedberg, and William S. Wilson.

'"'.V;' •■■,'. .'•■■ ".Z'-,•

'
•

FINANCIAL CHRONICLE

THE COMMERCIAL &

■■

172

—Thursday, January 9,1947
for

come

of job. But all have a
commbn starting point—the wage
of common unskilled labor.

must

ation

•

in evaluating Ahe wage

each type

125)7' '

(Continued from page

the

orbitant

benefited union, but also
of other; and smaller

means

members

predicated on ■ eco«j.
nomic
laws and not upon any unions, working people who be¬
long4 to no organized group, as
criminal code.' y7'7:

"the charge is
,

well

the public mind.

few cents added

price-hf a ton of coal.

the

only

nothing

to -the

;

citizen compared to

small business men, state

•( ( Applied

the national work

picture, there might be a different
base wage for different areas, but
the
relationship
between 7 un¬
skilled and the various grades, of

That

coal-burning
the'.phaqs .of

„

by, unions had
no coal at all,
* ^
many things to fight for.
When and civic employees and even the t One of the reasons for the high¬ ^killed would remain roughly the
grotips,
including
members struck, they often struck non-earning
same and area differences in the
er plane of living in America lies
and
institutionalized
minimum wage could be grad¬
against bad sanitary conditions, pensioners
in: the fact that the nation's pur¬
persons.
.
ually eliminated by
:
long hours or dangerous working
chasing power is largely in the
/conditions.
Now, if the pressure of, certain
The Injury - to Labor as a Whole hands of the consumers.
At the
The
"wobblies" of the West
organized groups is removed, the
In other words, the successful present time, it is estimated that
Coast led a battle for better con¬
rates for skilled groups
wages, salaries and pensions rep¬ wage
ditions in the logging camps of union's membership has benefit¬
seek
levels (dictated by
resent about 80% of the national would
the
Pacific
Northwest.
They ed at the expense of labor as a
If there
whole. ,77 (,
;*
'7.7'777' income. The other 20% is repre¬ supply a and demand. carpenters
struck
against
weevily
food,
shortage
of
by
interest,
dividends, were
Even in industries where com¬ sented
"crummy" bunk houses, the dawnthat raised the carpenter's wage
rents
and entrepreneurial earn¬
to-dark working day.
They won; petition is not effective because of
two-and-one-half times the
ings. In some countries, in which to
7 and others who followed a less patent ownership, monopoly, col¬
labor is heavily exploited, wages, rate for common labor, more peo¬
violent line ultimately won gen¬ lusion or restrictive agreements,
salaries and pensions represent as ple would train to become car¬
uine comfort and healthful sur¬ and wherein the power of a union
the supply
has forced an increase in wages, little as 45% of the national in¬ penters., Ultimately,
roundings for the rugged individ¬
of carpenters would meet the de¬
come.^
>
"
'
*
1
ualists who labored in this rugged the result on the balance of labor
mand and the relationship be¬
It is impossible for wages, sal¬
will be the same.
The monopoly
industry. r
aries and pensions to represent tween the common laborer's wage
:
It was inevitable that the cause will pass on the wage increase to
the whole of national income and and the carpenter's wage would
of the logger, the "timberbeast'?- price, the price will be paid by
it is doubtful that the percentage reach its normal level.
of the Pacific Northwest camps, the public and once again, a small
received by employees can run 7 If carpenters' wages dropped
should be espoused by the people organized group will have bene¬
much in excess of 80%.
Only two because of a surplus of carpenters,
7 who made the laws of Washing¬ fited at the expense of the whole,
the cost of carpentering would be
♦fr A
recent survey published in influences appear able to increase
ton, Oregon and Idaho.- Working
this figure—or even maintain it reflected in lowered prices which
conditions, hours of labor, safety the "United States News" set forth
would ( mean an* increase . in the
these facts graphically.
The sur¬ at its present high level.
: precautions, health measures, beThis,
One is the continuation of low real wage of everyone else.
vey compared the "real earnings"
came matters of law and .were reinterest rates which will keep the of course, is possible only where
moved from the category of labor- of five groups of working people
true competition exists.
in 1939 with their projected real factors of dividends, interest and
management dispute.
rents low in relation to the total
.-'•.ft
71,
V :7/.77K'''-7
This competitive condition does
earnings in 1946. It chose for com¬
The second is to perfect not yet exist in the United States.
Reforms Followed Public Opinion parison the well organized and income.
further our. competitive condi¬ Goods are still tqo scarce to create
-y.
Not all the reforms for the ben¬ politically powerful farmers, the tions so that savings in costs are
a buyers' market.
But the time is
highly organized and "politically
s'. cfit of workers have come about
passed on to the consumers in the not far distant when production
7 because
of labor-union
activity. potent" auto workers, the loosely
form of lower prices and not ac¬ will have caught up to demand and
Many have, of course, but the end organized and unorganized retail
true competition will again be the
workers, the factionally organized cumulated as additional profits.
In

years

gone

established,

our

be relieved of

economy

the^pressure

from ( highly •/■ organized
groups.
These groups have developed high
skill

the tactics of labor

poli-.

If their power is

tics.

maintained
or' increased,
it Will bring; continued inflation of the price level
through
the
exploitation
that

brands

unionism

"Unfair

La-

■

Bonds of Sydney,
A

writers

000

Ulti¬

same.

•

governments for the

benefit

What

7 unions?

remain

functions

the

777;'./(-rv,7:7/7

/; Under present conditions, the
unions can give their members a

;

certain element of job security—
protection against capricious and
unjustified discharges.
But their

;

their, members more wages. Their
efforts,, in this direction may take
many different .forms.
They may

main

;

function

involve

today

demands

for

give

vaca-

tion with, pay, more: holidays,
:"featherbedding" or other forms

r
.

of made "work"
v>

fund

contribution.

special sick

a
-

But

the

end

sought is always the same—more
money for the same work. *
;

yt'

The
successful
union
leader
negotiate a contract for the

may

milk wagon drivers that increases
their pay by 15%.
John L. Lewis

obtain

may

increase

miners.\ The

Railroad

for

sinking fund bonds, due Jan.
1, 1957. The bonds are priced at
101% and accrued interest. Pay¬
ment for the bonds may be made
either in cash or in City of Sydney
5.%% bonds of 1955 at a price of
102.468%. The offering represents
the first financing -by a political

by $166 and the- junior Whole!
executives' salaries are worth $lk
406 less than five years ago.

f
..

the

Brother¬

higher

•

►

demand on the
transportation tieup.
wage

In all those segments of the

econ-

7 omy where competition'is work¬
ing

effectively,

modities

prices

services

for

are

com¬

low

Maldistribution of Income

the

unions

competitive
industry succeed in forcing an in¬
crease in pay, the price of that in¬
a

dustry's products must rise in

or¬

der

be¬

maintain

the

balance

tween production and distribution
costs and the fair

profit that keeps

the industry going.
This

rise -is

wage

leveling off the real
of their membership.

ly, a

are

redeemable at the regu¬

redemption price of 103Vz%, if
redeemed on or before Dec. 31;

inflation
years.

over

the

course

77v':7y7ss;;77

There

reason

why these

which to pre¬
for
skilled and other classifications of
work.
*
(-7
\
7.
basis

dicate

schedule. of returns

groundwork for
such a formula has already been
laid.
Industry
and
commercial
public
apathy
and
produce a enterprises have conducted elab¬
scream
of general indignation— orate studies in order to evaluate
the chances are they'll get their the jobs within their own organ¬
Thus, if the coal miners demand
a

modest 10%

approximately £A4,457,000
for any year in the
history. The electric op¬
erations of the Council have been
: In many industries, particularly
self-sustaining;
however,
along
old and long-established ones, the
with other political subdivisions,
increase
in
productivity
per
the Council has the power to levy
worker might be negligible from
taxes on the improved and unim¬
year to year.
In other industries,
proved capital value of land with¬
particularly younger ones where in the
Sydney County District.
the arts of manufacture have not
7 The
Sydney
County
Council

alent to a

been

in terms

increase at any one

time, it does not appear to be ex¬

the

completely explored, the in¬
in productivity will be con¬

crease

siderably more than 3%.
Under
a
determined wage 7 policy and
with competitive conditions pre¬

highest

Council

plans to make application to list
the new bonds on the New York
Exchange. Associated

Stock

Kidder, Peabody & Co,

able

wage

policy that applies to

all men and Women
a

who work for

living with maximum

tion,
marks the
economic. stability

Peters, Writer Admits

competi¬

route toward
.and continued

Sweet

progress.
V

We can live in

don't

have

7- DENVER,

better homes if

Writer

to pay tribute to

Firm Member
COLO.

—

Peters,!

Christensen,-Inc., U.-

S.;|

trades unions; we can National Bank Building, announce;
afford better cars if we don't have that William E. Sweet, Jr., has:
to pay tribute to auto workers'
been taken into the membership;
unions and we could afford more
of their firm.
" ''
of almost everything if the rail¬
road unions did not exact from us
their tribute in the form of high¬ N. Leonard Cohen
er freight rates..
,
The amendment of this law that
Incorporated j
v :
would
establish
the
minimum
An intelligent wage policy is a
INDIANAPOLIS, IND.—NJ
of
administration well
wage as the present going wage matter
within the powers of American Leonard Cohen & Co., 8 East Mar<
for unskilled common labor would
establish

increases, every year!

936,577,000. Gross revenues for the
12 months ended Sept. 30, 1946,
were

increase every year as
their contracts expire.
The only
real control lies in public opinion.
As long as the unions' demands
are "reasonable"—as long as they
don't bite through the shell of
wage

year 1936 were461,301>000 ahdfqry
the year ended Sept. 30,1946 were

living* which is equiv¬
3% increase in the real

the building

the

and

with
in the of-r |
fering. are: Harriman Ripley &
vailing, this increase in efficiency
will be for the benefit of all in Co.,: Inc.; Lazard Freres & Co.; M
White, Vfeld & Co.; Dominion ;|
the form of lower prices,
Securities Corp.; Equitable Se-,
A Universally Applied Wage
curities Corp., and Hay den, Stone i
Policy
- v ,
the elimination of the pressure
(7;'7y yvy/ j
exploitation by well organized
The combination of an. equit¬ & Co.

unions cannot demand—and get—
a

of 3 %

average

this would mean, rough¬
decrease of 3% per year in

wage—-in other words, of what people can buy.

grown

big unions, can only lead to steady

(Australian pounds) in 1936
was
£A10,168,000 Sept. .30,
1946. Kilowatt hour sales for the

000

the cost of

unions.

The muscles

have

the

public.: This
public
consists not only of the members

bonds
lar

per year,

the effect of

wage

passed

purchasing

$8,170,000 City of Sydney
51/2% bonds of 1955 at par and ac¬
crued
interest.
The new
3V2.%

the

machines by

For union successes in getting
this deal organ¬
ize and press demands that will higher wages would not affect the
keep their real wage in the same total paid to employees. ' It would
relative position?
This is the na¬ only affect the distribution of that
tural
question
to
ask. > But it income. The powerful unions have
doesn't represent the solution.
little to fear from steady inflation.
:
Through their power, their con¬
Highly Organized Groups in;
trol over essential services and
Preferred Position
manufactures, they can always in¬
The highly' organized
ffihoups crease their income, in advance of
are
in strategic 7 position. ; They the rise in the cost of living,
operate in ^'key" industries—steel,
v TjBy 7 the * timer
increased 7 prices
coal, transportation. The millions have reflected themselves in a rise
engaged in personal service busi¬ for the majority of the (people
nesses, domestic service, salesmen who
work, the unions are ready
and employees of government are
with another demand that will get
among large groups* of '"working them a larger share of the pie
people'' ;who:. probably could not at the -expense of the balance of
form powerful unions.
labor.
-Moreover, the big unions prob¬
: ■
•
Remedies
• \
5
ably would never • let the new
The obvious cures for these in-?
unions "catch up" to them, for
equalities are:
v
success in other fields would have

possible, because price is one of
the major stimulants to mass ac¬
ceptance and mass distribution, i
If

the American investment

our,

undertaken in .
market
since before the war. ' Proceeds;
from the sale of the securities Willy
be used to redeem on Feb. 1; 1947,

of .Australia to be

can continue to increase
' prq^luctiyity
per
worker
through new methods arid new

Union Successes Aggravate

Why, then, don't the groups on

of the big unions
large and powerful. 2.. the?■ establishment of a wage
threat of a
How they came to grow—whether
policy that would apply to all
But
no
matter
how
successful
they were developed as protection 7 people who work.,
these unions are, they cannot in¬ against the exploitation by man¬
There is now in existence the
crease the real wage of labor as a
agement—is beside the point.
It potential machinery for the es¬
whole.
The increases they obtain
remains that
now
the--.powerful tablishment of a consistent wage
are
decreases for the rest of us.
unions are using their muscles for
policy.:
The Wages" and Hours
Their increases are passed on to
the exploitation of our economy. Law sets a minimum wage of 40
all of us in the form of higher As unions come to the full real¬
cents an hour for employees in
prices. (7 ;;'
ization of their power, this ex¬ any business engaged in interstate
commerce.
This is, of course, an
Wages and prices in the United ploitation is bound to increase.
States are based on an economy
The power we have placed—- unrealistic figure because of the
of competition—except, of course,
increase in the cost of living that
with the help and sanction of the
in times of national emergency. government—in the hands.of the occurred since the law's passage.
a

subdivision; of the Commonwealth7

Wages,-

reduced

hoods may get a quick settlement
for

(Common¬
3Vz% ten-

may

the losing end of

| of all.

unorganized school teachers
unorganized group in the

and the

^nfprced by •. either state - or (Fed-;
eral

Australia)

1947, and at decreasing prices in
salaries iand pensions controlling factor in the distribu¬ each successive year thereafter.
remain high in relation to tion of .manufactured goods, prod¬ They are also redeemable for the
higher
wage
class known as the total income, but as long as uce and service.
sinking fund at 101 prior to Jan.
junior executives; ;
: unions retain their' monopolistic
Increased Productivity Means an 1, 1948, and at declining percent¬
According to this tabulation, the power and influence over our
ages thereafter.
1
7
Increased Real Wage 7 7 :
farmers' real wage is up $897 from economy, the distribution of this
The Council's funded debt les3
We
have
increased the per
1939, the auto workers' up $226. portion of the national income
sinking fund and special fund in¬
The retail workers'*real earnings will
be discriminatory • and in¬ worker productivity an average
vestments amounted to £ All, 796,are down $80; the school teachers'
equitable—unfair to labor as a of 3% a year for the last 40 years.
and

17measdi^;are.v.adniinistered -and
.

'of

year

been,the

County s Council

wealth

has

principal amount of The Syd¬

ney

;

mately; existent1 evils have been
7 corrected by laws passed under
y the
pressure
of public ('/opinion.
The objectives for which unions
v
might once have fought are no
,>•• longer
subject
to v controversy.
7 Laws that prohibit child labor,
limit hours, give benefits for in¬
juries, social security, unemploy¬
ment insurance, health and safety

headed

Aus.

of under¬
Kidder, Pea-

grouo

body & Co. offered to the public
on Dec. 30 a new issue of $8,500,-

/result

nationwide

More than the

izations.

Wage rates are stepped

in accordance with responsi¬
bility, arduousness or skills. Many
factors are taken into consider¬
up

execution. 77 The achievement;. of
maximum
competition ( requires
some

tain

vigilance.
We must main¬
alert and conscientious
over

mond

applied.

vigorously

statutes
upheld and

The

patent

Mr. N. L.

liberalized.
the
basis for

the

Ray-I

Vice-President

Parrish, Treasurer; an

Irwin G. Cohen,

laws, too,

They now
form
dangerous
practices. which create monopo¬
lies and therefore the tendency
toward over-value prices.
7 But; while
these policies ; be¬
must

President;

Cohen,

N. Parker,

Chester A.

business

Officers are N*

corporation,

Leonard

monopolistic

tendencies; the anti-trust
must

surveillance

is now doing

ket Street,

Secretary.

Cohen was

proprieto

predecessor, firm,

witlj

associated
with F. S. Mose*

which Mr. Parrish was
Mr. Parker "was
"

ley & Co. .J

„

Volume

165

Number 4558

THE

COMMERCIAL

& FINANCIAL

CHRONICLE
173

Tendencies in the New Year

(Continued from page 134)
V
in nearly all phases oi- economic
activity.
' • - <'
*
' '
'

Constructive
labor leaders,

count

for

all; of

the

having
force

lines, however, they have
(not yet taken all the goods that
v
produced while in others
mand is still ahead of

de¬

free

supply* The

many

lines

Significant

uncertainties

The effects

number

plish

the

even

which

out

■

some cases

increased productivity
has kept the price rises from
go¬
ing too high, but in others effi¬

rates,

costs,

maladj ustments

and

prices, i While

covered

up temporarily
last year by

were'
costs

may
as

they

passing

the

higher prices
more

are

the

consumers,

the

likely to meet
resistance.

consumer

The

danger of boosting prices beyond
the

ability

willingness of

market is far more
has
been
during

the

acute than

the

prevent

restrict
were

from

;

nich less.
in further

alance
ower

rices.

ill

This situation results
distortion and lack of

between

the

purchasing

different groups and
The interests of all labor
promoted best by main-

aining balance, continued prouction, and the right relationships
hich will enable goods to be

ex-

hanged at prices within the abilty of the largest number of peole to buy.

;

the

part

thus

offset
The

still

the

unfa¬

stimulating
'

may
overcome
of " rising
prices

the

and

This brief
summary of the

forces now at work
useful guide for eval¬
current trends in

provides

uating

general

business and fn
making
mate for the future.

the

among manufacturers is

aspect

esti¬

Outlook in Leading
Industries

achieved,

hand

compari¬
within a few

son; With

industries

somewhat

amounts of goods
still low in

are

although

different

Although the

different .rates
recession.
f

pansion

all

times

change
of

at
ex¬

■!.;; ;

The

readjustment

least

Expanding debt is
time

but

when

The

excesses

are

percentage
although the trend

than
is

needs to be

watched carefully as
indicator of future buying.
Ih addition to " the amount of

one

power

attitude

in the hands of

consumers

the

out

un«r

com¬

may

considered by business as part of
cost of operation and when
they are so high that they cannot
be met out of the amounts re¬
ceived through the sale of
the

goods,
business activity and employment
mustbe

curtailed.
Sometimes
lower taxes and reduced cost of

doing

business

may
so .greatly
business volume, that

stimulate
total

governmental revenues may
be increased rather than
reduced.
On the other hand, taxes must
be

large enough to finance the huge
national

;

debt

and

meet

being"maintained.;

the

;

the

''yH.??

right

balance between
considerations can
be
established in tax policy as well as

opposing

other

phases

government

policies, the future outlook for
production and employment will
be favorable.
Current prospects
•

are

that somewhat better
decisions
be made than have been
at

will

many times in the past few
years.

Artificial restrictions

are

being removed and when
ers

rapidly
consum¬

have

greater freedom to buy
what they want at
prices they are
willing to pay, the production of
those goods will be
greatly stim:i v.

•

>'# i'

».

.1'!

Constructive Factors Also

types of consumer durable
goods, just as soon as these goods
Of

available.

these

Will

Significant

the purchase

Economic trends

are

articles

the result

stocks of fin¬

have declined in recent
weeks, but
they are still almost ^double
those
of the
corresponding period of the
previous year.
Total construction
f}
of all kinds
during 1946 was esti¬
mated to total close to

indirectly

industry

hand are not
large. J
building industry made
rapid strides during most of the
;
year in spite of
shortages of all
kinds. Building contracts
awarded

commercial, indus¬

trial,

other

are

;; The

these; loans are used to
carryin*
yentoryWor■ itO finance consumer
credit either
directly or

Bank loans for

which

consumers

all

ished steel

readjust¬

The rise in commercial
loans in
the banks is another
indication of
the current situation
as
many of

which

purchasing

Current

readjustment' need

tion and prices would not
be
expected
during that

normal

one

indications are that demand for steel from
domestic and
foreign buyers will be sufficient
to maintain
very 'high levels of
output throughout much of the
year. Work stoppages due to

until

liqui¬

out of line with current
ment.
They
still
represent
a

smaller

month

and* at

recession

rapidly

slump to about 60% last
during the coal shortage.

serious, however, nor need
long continued provided it
is
made
manpromptly
with
such
changes in prices as will move the agementrlabor difficulties would,
of course, reverse
goods most speedily.
that trend and
A recession
result in lowered
of from 20 to 30% in
output through¬
both produc¬
it

Although consumer debts
large and increasing, they are

sales.

the

from the

not be

goods.;

not; yet

temporary

dated.

charges, the debt becomes
obstacle to the purchase of new

are

some

terest
an

has recovered

would rriake that
point come even
sooner.
The end* of an
inventory
boom is a

few

so large that
a considerable
portion of current
income must be used to
pay off
past indebtedness and to meet in¬

would have been ; turned
producers could have re¬
enough
to
cover
their

modify the amount of
purchasing power for different
types of goods.
Taxes must be

pro¬

come

conflicting

nearly

high volume

substantial

completion.; That
inventory rise will

are

the amount becomes

higher prices but

large volume of expenditures that

among the highest paid ones and
the products which these workers
make must find a market
among
those whose incomes have risen

for

to / new

longer, consumers will be
deeply in debt than at any

stimulating for

production*
least partly

is still

already

than

of
are

time to

some

trends.

landicaps

costs.

partly finished goods which
need only a few
additional parts

received

previous time.

extreme

are

sales.

inventory

spending

accom¬

last12
months. Many of the increases in
wage rates now being considered
among those who

with

months

re¬

ing months. Taxes change the dis¬
tribution of current income and

shortages.

these

channels

line

for

steadily !
nfluences
higher than they

sales,,
i;
excellent indicator of this months, if present trends continue,
situation is the amount of con¬ they will not only be far above

agency.

control did

closely watched during the

ciency has been low, due not only
to restlessness but also to
material
re-^

consumers

than

vorable

rise

and? agricultural
purposes
made by the member
banks of the
Federal
Reserve
System ; have
items of cost were go¬
tude
has: been
favorable
for risen about 40% during the. last
ing higher did result in; fewer
greater buying but whether or not year and are at a. new
peak. For
goods being available. In the
long it will continue to be for
another several weeks the rate of increase
run the
inflationary pressures be¬
year is one of the-important un¬ has been accelerating.
came steadily
It is not
stronger and harder
certainties to be faced. Will peo¬ yet out of line with sales or other
to control until now a
large per¬
ple continue to spend their sav¬ aspects of the economic
system,
centage have. been freed.
The
ings, a Targer percentage Of ;their but the. total ..debt^strncture, both
best objective is to get the
largest current'
by business, and by
incomes, and then go, into
amount of goods on the
.consumers, is
market, debt in order to
get the goods they being expanded steadily.
and the trend for some time
Unless
has want as
they have been doing? the current trend is halted before
been in that direction.
The desire is undoubtedly still it goes to extremes, later exten¬
The rates and kinds of taxes
very great for automobiles, refrig¬ sive readjustments
may be neces¬
greatly affect business and the
erators, radios, electrical appli¬ sary; fip
prospects of tax changes will be ances of all
'-t:--v.;;/.
kinds, houses and

the

are

bution
in

farces

making for high volume
duction and employment

amounts

have ever been
before.
Part of
the production this
year has been
used to fill the
pipelines or distri¬

sev¬

have
toward current
higher costs; The attempt to keep
prices and their viewpoint as to
prices at relatively low levels
future incomes;
So far that atti¬
when most

Accompanying many wage set¬
tlements have been provisions for
higher prices and in nearly every
,line prices of the finished
prod¬
ucts have gone up to
compensate

year's changes

ceived

where.

last

For

are now

early postwar period, they also

protected

involve

years

savings has been evi¬

continued

they

in¬

sales not orfly in
retail
stores but also in all
other forms
of
buying. The constructive

about

they were, also deprived of goods

create bottle¬

peated this year the result will be
further distortions
wage
among

they; were
savings
mounted
peaks.
Savings, which

nearly free than

a government

much

Consumers

; take

higher costs.

sound

and

type

ability to buy.

time in many years. Prices

tended

pro¬

for much of the

have

and

than income and that fact
accounts
for a part of the
extremely high
level of retail sales.

price rises that have been asso¬
ciated with other wars and
during

man-hours lost, by
directly involved. They also
' critical
shortages else¬

those

coming to. represent the

specified by

any

be measured by

eral

sults of competition
among buyers
and sellers rather than the
amount

"place in smaller industries-they
may result in shortages of essen*

tion cannot

and

the last year the
of the war regulations

Although price

necks.; Large quantities of goods
have been held up and production
in many lines handicapped due to
those causes during the last
year.
The total effects of
any; interrup¬

current trend continues for

at any

of work stoppages

tial items and thus

year.

future.

sumer

be made to almost
any

can

becoming

are

•

are, of course, to delay the
duction of needed goods and
'When
these
interruptions

;•''

Although in time adjust¬

majority

known, business planning will
handicapped and no close ap¬
in

coming

of major uncer¬
tainty in business planning is that
of
consumer
attitudes and con¬

have been removed and business

Possibly both will take place and
1 thus tend to hold down both
pro¬
duction
and
business
volume.
Until the terms on which
wage
settlements
in
major industries

trends

one

Throughout

possibility of either

praisal of future
line can be made.

any

ment.

extensive work stoppages or
sharp
changes in wage rates and costs.

goods

large

■

tion of last year in
many indus¬
tries with the

; are

force

taking place. The

nearly
'

these

steel
industry has been pro--1
especially disturbing unless those
ducing at close to 90% of
any previous peak but also
capacity
above for
changes work definitely in the di¬ sumer debt outstanding.
It has
the normal
many months and
been rising
turning out
rection of helping business
relationship to current close to
rapidly, in fact, twice
to in¬
demand.
7,000,000 tons of steel each
as rapidly as ever
Any decline in sales
crease
production and employ¬
before,; If the
month.
It

between labor and
management will again constitute

during the next few months. Cur¬
rent indicators point to a
repeti¬

;

es¬

kind of regulation,
any indications
that changes are
likely will be

Relations

major

Inventory trends indicate
what is

control.
ment

the

policies » may

dent

> ;

and

hand;,by manufac¬ Strong and
outstanding turers,
wholesalers, *and retailers may more

the

conditions

tne

comes

Another

Lahor-Management Relations

one

few

effect

not

Variations .among different in¬
the
dustries have been
be
unusually great
quickly
really remedied
by the
just as soon as some of during the last year but they are
claims that may be made
businessman when he is
against the current
planning
bottlenecks are elim¬ pecoming less.
As
the
normal
for the future.
These policies in¬ production, are still high, although inated.
Unbalanced inventory is forces of competition are allowed
the expansion last
clude not only expenditures
year was the
by
quite as much a factor now as
';o; operate
more
smallest in many
is
freely,
even
governmental
years.
Among the size of total
agencies but also
greater
inventories.
uniformity may be '■■■■
"
many groups spending was greater
many forms
of regulation
and

production, distribution

one

The

the fun¬

order to have

productive,.; economic

may

must be taken into account

different lines at different
times,
require extensive readjust¬
ments in

of the

Government touches business at
so
many points that its policies

and

of- this difference but
all of it.

un¬

: •'vAw;;
v,'J
Inventories Are Rising

'system.
That 'educatlon will continue and

Government Policies More
Favorable_;
--.i

; significant
development
(throughout much of this year and
such a change is
likely to come
suddenly.
It will take place in

regardless

weight

uncertainties^<7TIhe
months.
>;>.:<■,; '

costly edu¬

cation in economics and

damentals needed in

can

play 6f competition will

group.;;

;m o s t

decisions

which

but

than usual

present
conditions, and consitute another of
the- flfgnificant

Consumer Attitudes Uncertain

competition

sellers is becoming keen¬
er.
The change from a sellers'
market to a buyers' one will be a

monopolies

basic

tablish better results than will the

among

and prices.

provided

unrestrained

relationships
between * demaffd
supply are Changing rapidly
in an increasing number of fields
in

years

balance of power among compet¬
ing,, groups, (.win most fields the

and

;.and

and

der,

The experience of recent
with outside controls has

economic merits of those decisions' achievements
of the
and to restore more
nearly even As a result of it

some

were

ulated.

coming months to
keep business activity high. Much
the problem will be to avoid

price

than have retail prices.

level has been steadily
rising. Re*
4ail sales have
increased even
more

leadership;
businessmen,

government officials will be need¬
ed during the

Somewhat higher prices account
for much of the increase over
a
year ago in some lines;
they ac¬

given

$10,000,-

000,000.
A large part of it was
residential building
although large
amounts of other
types of con¬
struction were also put
up. Almost
1,000,000 new homes were
started,
but not over
..

650,000

pleted.

were

com¬

Production' has been

increasing

in such lines1 as
textiles ahd print¬
as well as1 in most Consumer

nondurable goods industries. Out-

ing

put this year will exceed that of
last year and
supplies are coming ;
inore nearly in line with
demand,

■

The

automobile

industry

has

fallen far short of the
goal which ;
was set for-1946.'
Output

recently,

however, has been

very close to
100,000 passenger cars and trucks
weekly. Total output for the year

represent addi¬ of conflicting tendencies and an
buying on top of present appraisal of all of them is needed
was
purchasing or will consumers cut to estimate what is
slightly over 2,000,000 passen¬
likely to take
down their
buying of other items place in the future. Some of the ger cars and 1,000,000 trucks. Un¬
in order * to
buy the new lines tendencies boost business while less the industry is handicapped
coming on the. market in increas¬ others retard it and the
by material shortages and inter¬
tional

ing

volume?
Shifts among dif¬
ferent lines may be
extremely sig¬

nificant
and

just

during the coming,
as

year

important to watch

is the total volume of

buying.;

On the other hand,
people may
be more cautious
and, remember¬

ing; their

difficulties during;the£

of unemployment and dull
business, hold on to their savings

years

well

substantial percentage
of their current incomes.
If pro¬
duction and business
as a

cline somewhat

during the

activity de¬

they usually do

second

postwar year,

people may hesitate to make pur¬
chases

and

business

thus

still

tend

further;

reduce

Such

change could

come very
suddenly
it did in 1920 when
production
and prices declined
as

few months.

sharply for a
temporary

After the

lull, however, business again ex¬
panded and the long period of
prosperity followed.
Recognition
of

the

possibility that

consumer

attitudes may change for
should be a part of
any

for the future.

public

time

planning

Considerations of

psychology

can

well

outcome
this tug-of-war is either
pros¬

perity

or;

depression.

Consumer

purchasing

power,

strongest force
making for increased
business
activity.
It exerts pressure on
prices and on (production for it
provides the market for the goods
factories are turning out.

which
is

also

the result of

activity and
causes

business

consideration of the
of income in the hands of

consumers

important

the effects of it

sales.

are

faVfa;'

Total income payments to indi¬
viduals have continued to rise and
have reached a peak of over

$14,760,000,000 monthly. That figure
is 6% higher than it was a
year
ago

and

two

and

one-half

times

the. prewar level.
Even in rela¬
tion to current prices it is much

higher.^ Incomes have risen
than,

factory production

should

provide

the goods that

can

market

be turned

all

out,
75%

some

i, n u.

U JC;

double this

Production of coal, except for
the periods when the mines
were
closed, has been running over

12,000,000 tons weekly. Total output ;
for the year, however, was about
fa
50,000,000 tons less than in the
preceding

year and considerably
below demand. Future trends will

depend upon the settlement of,
as all that can
be mined will be needed,
fa
;
f
Trends are somewhat similar inL

labor" difficulties

most

lines, with only a few signs
significant falling off in de¬
mand.
Expansion has continued
of

I'll*

much longer than usual,
and

some

however,

readjustments may, be

expected during the second peacetime

year.-;

(Special to The

Financial

Corp.

Cbsonicle)

INDIANAPOLIS, IND.—-John
Partenheimer

S e

c u r

Tower.

it i
,/

With City S^riHties

and

for

output of goods is only
higher. Rising prices offset
■)l

of passenger cars
may
year,

both actual in the form of
current
income and potential in the form
of savings, is the

ruptions in operations, the output

now

with

City'
Corporation, Circle

e s
.

...

i„;y

THE

COMMERCIAL 8c FINANCIAL

1947

Thursday, January 9,

;

CHRONICLE;

174

the-market, in order to

•

Government Bond
Functions

Dealers—translate
„

ficult

(Continued from page 135)

and
into

best

Dealers'
the

supply

demand for such securities
bid and asked prices, there

by making and
market; Perhaps
PesS domes

representing the
90% of our busi

from hanks,

insurance

companies, stock exchange houses,
and Similar institutions. The bond
sold by an
tion

individual of corpora¬
bank, stock broker, or

consider- the customer's
objectively ywhen

interest

good. Although,
middlemen,

represent the market, We differ
from other bond and stock dealers
and brokers in that we charge no
commission and have no organ¬
ized exchange.
In fact, all the
dealers' head offices are not even
located in New York, and the dif¬
ferent houses may be quoting dif¬
ferent markets for thb same issues
at the same timer The reason for
this
difference
I shall explain

transactions

These prices
are
obtained so rapidly that the
customer waits on the telephone
for the reply. The sales and purbe

could

executed.

approaching him under the lure
of a commission/ If we were in
the advertising business we would
chases are all ^agreed/upon ver¬
probably refer to our salesmen as
"account supervisors," which is bally, written confirmation being
mailed by the dealer. > The Verbal
more
apt.
"Account
advisorswould be even more fitting. Gov¬ agreement, however, is an abso¬
lute contract, and human nature
ernment bond salesmen must have
being what it is, it seems at times
a thorough working knowledge of
remarkable that there has never
the problems of their clients and,
been in the history of our com¬
because most of their clients are
financial

institutions,

under¬ pany

banking and
general bond dealer will eventu¬
the money market is a basic re¬
ally be sold in turA to a govern¬
quirement. Thus fortified, a sales¬
ment bond dealer. The same chain
man
learns as much as he can
in reverse applies to a purchase.
about the particular investment
As underwriters, government bond
problems
confronting an indi¬
dealers only subscribe to new isvidual real or potential customer.
sues
as do
any other investors,
It is interesting to mention at this
except that larger subscriptions
point that some salesmen do busi¬
are allowed if distributional abil¬
ity is considered
in the form of

various

the

which

standing of central

ness

the telephone

for years

without
ever
meeting each other.
When
a
salesman is able to obtain an
up-to-date list of securities held
in the investment portfolio of an
institution, he is in a position to
commence expressing at least in¬
telligent, if not helpful, opinions.
As in any profession, this confi¬
dential information is necessarily
held and treated in strictest con¬
fidence; Without such a holdings
list he is wasting both the port¬
folio manager's time and his time.
You wouldn't expect your insur¬

with

certain

customers

reheging

ulated in such a

the price stip¬

verbal contract.

Any attempt would obviously be
ruinous to reputation and credit.
I mentioned

that Salesmen Jones,

asked- their
head office for current prices on
the issues concerned.
'
Smith

and

Brown

heart., and
Be¬
fore 1860 the comparatively small
amount of U. S. securities were
traded on the New York Stock
Exchange by brokers charging U

the role of

•;

/ :

investor himself.

equivalent of the American dealer
is known as a jobber whor/ is d
member of the Exchange. I. /h 7

recognized as a member of
the Government Securities Deal
Group by the Account Man

ager

tee

The

of the Open Market Commit

of the Federal

other

prices are

"traders."

words; one

trader may

equivalent

Opeti

the

Market Committee in Lohdon

Reserve- Sys¬

located in New York. Cer¬
tain dealers with large Capital
resources and with proven distri¬

fore

sufficient

be¬

(I doh't know how

was

tem

volume

and

ability

butional

of retail business,

it's

in ad¬

Government

now

under

riationallzeK

quietly buy or sell for the ac¬
of the various government

funds

upon

direction

from

the

stabilize the
market. : In .prewar Berlin, it ii
my understanding that the mar¬
Treasury in order to

Group, have agreed in writing to
cooperate with the Open Market
Committee in its effort to main¬
tain a stable market. They submit

ket

for

the

various

government

obligations was fixed daily at noori
by Reichsbank

officials and mar-*

That was the .market
unless one wished
deal outside of the official mar¬

ket experts.

until next noon,

small

Nineteen dealers may seem a

done

count

Dealers

Securities

war

was one of the brokers Who
appointed and reimbursed to
act as the government's agent and

being members of the
informal association known as the
dition

the

tion)

furnished by
The usual
procedure is to assign the respond
daily to the Open Market Com¬
sibility of making prices on the mittee confidential reports regard¬
various issues to traders in ac¬
ing their position and volume.
cordance with the types of issues.
These

so-called

partial

the

There

Exchange. y

still

securities
the London

British

England on

traded in

mean

ers

This practice is

for

force

there

dealers.

bond

of his business.

commission'.

yy:A

recognized
government
By recognized, I

are

the

nerve center

Government Bond Dealers

I mentioned earlier that

er's/position

quote a

price t<5 "the investor which Will
be satisfactory to the investor, as
well as to the dealer who assumes

number in view of the size of the

specialize in short-term securi¬ debt and the number of holders
ties; another in intermediate-term of this debt. However, the nature
issues; another in the long-term of the business is not only highly
tap bonds*; another in partially tax
specialized, but of a sort that has
exempt issues; .while still another caused several who were tempted
may. specialize lit governmental to enter it to change their minds
agency bonds. These" traders, sit¬
after
giving the
matter more
ting together, are in a position to
thought and after reviewing the
see the. supply-and-demand pic¬
experiences of others. Unlike the
ture represented by the inquiries
exchanges which have listed the
coming to them from the sales¬
securities of thousands of corpo¬

ket

official

the

risk

finding /the

market

day ' quite

from

the

unofficial

different

prides at which be dealt.1 All of
this is sihiply by Kray Of saying

paths to thri
The present
operational procedures in this
country were stimulated by a de¬
later—the justification is open to
sire on the part of my father to
doubt. We may best be described
specialize as a dealer rather than
as traders, whose only regulations
man.
In a three-day transaction,
ance agent to advise you without
rations and can, therefore, support a btoker;/ /By / doing btrsiness at
are
imposed indirectly by the
knowing What insurance you held, such as I have described, the trad¬ the
thousands > of - brokers ; and net prices; andtprofiting by the
Open Market Committee of the
ers would, of course, be presented
or your doctor to treat you with¬
dealers who specialize' in the se¬ small difference between a bid
Federal Reserve System. The real
out first learning your medical with no particularly difficult task.
curities " of- their choice, the tre¬ and asked price on each' issue, the
market is regulated by the law
history. Unfortunately, there are The operation would be a pure mendous direct debt of the Fed¬ cost of buying or selling was re¬
Of supply and demand; and ex¬
and simple simultaneous exchange.
a few investors who still seek ad¬
eral Government is only repre? duced ;tri banl«,; in^rahce fcdittr
treme
competition. Government
vice, but are reluctant to give Physical delivery and pick-up of sented in the form of 43 issues of panies, and all other Oustomers., '
bond dealers concentrate on spe¬
basic information to enable in¬ the bonds concerned might pre¬
bonds. j
'
Stock Exchange brokers charg¬
cializing within a specialty.
If
telligent advice. The value of ser¬ sent "certain technical problems
The dealers may be classified ing commissions found difficulty
y we can place bonds for sale by
vice rendered under such condi¬ to the cashier's department, but
into three types—large, small and in,, competing, As time weni on^
an Eastern insurance company in
tions can logically be negligible.
usually banks maintain the ma¬ bank. The latter category may be
'the portfolio of a Western bank
and as more issued becomd avail¬
jority of their securities in safe¬
who wants those bonds, we have
large or small. The large dealers able/-with the rise of the . debt,
If, on the other hand, a sales¬
keeping with a large New York
are
financially
and physically and as interest in government se-r
performed a real service;' have man is given not only a list of o*
Chicago correspondent bank
seen the degree of supply and de¬
large and* have snational contacts clarities Was aroused In large; part
holdings, but additional informa¬
If, on the other ; hahdythe three
mand which will enable us to tion including cost and " current
through wire systems, branches, by the efforts of our company
banks did not simultaneously ap¬
and representatives. The descrip¬ when the First Liberty Loan was
make the market for these bonds,
amortized book value of securities
prove of the respective recom¬
and we expect a small profit for held, a recently dated statement
tion, though, is determined more issued,- the spread between bid
mendations made, or if one of the
ourselves.
'
<
'/
of condition showing time and de¬
by the fact that a large dealer and asked Was reduced from : J/4
banks in the three-way transac¬
mand deposits, total gross earn¬
actually makes markets and is to the l/32nd and 1/64th of 1%
tion disapproved of the recom¬
Possibly a
government bond
ready to "stand on his market" basis that is found today. A 64th
dealer's economic function could ings, net current earnings before mendations made to it, the trad¬
for sizable amounts, not knowing Of 1%; amounts .to a gross of 15*&
taxes on income, taxes on income,
better be described by following
ers
would receive not only an
and regardless of whether the cents per $1,000 bond. Needless to
net profits after taxes on income,
a typical transaction through from
entirely different picture of sup¬
customer is a buyer or seller.
say,
the volume and turnover
start to finish.
We will assume together with the investor's fore- ply and demand, which might in
Cast of the trend of his deposits
The small dealer is what the needed to operate profitably on
for the sake of example that the
turn influence their quotation of
this basis is formidable—running
name implies, and performs in a
during the current 12-month pe¬
dealer is a house doing business
prices, but also they would be
iritol rriarty billions per year It
on
a national
scale with branch riod, his expectation of any heavy presented with a more difficult relatively smaller way than the
has been said of our profession
withdrawals, and his forecast as
major dealer. His function is not
offices located in various cities
problem. They would have to de¬
to the demand for loans in his
to be
belittled, but because his that it has the largest turnover
and a wire system connecting all
cide instantly whether Or not to
at the smallest margin of profit
community or district, it is then
offices to enable the fastest pos¬
act as principal rather than mid¬ capital and contacts are less he
finds it usually impossible to make of any business" in . the country.
sible communication. I might di¬ possible to make an intelligent ex¬
dleman. Since dealing in govern¬
amination of the investor's prob¬
his markets in size and stand on A large volume at a small unit
ment bonds is a service business,
gress long enough to remark that
lems.
Such an examination may
them.
He can operate more eas¬ profit would present no problem
the selection of cities in which the
the purpose of which is to al¬
if it were that simple. ' But vol¬
be made by the salesman himself,
ily, efficiently and conservatively
branch offices are to be located
ways make a market in any of
ume, like rain, usually never hap¬
but in all likelihood the data will
has an element of humor based
the government bond security is¬ by following and using the mar¬
pens but what it pours—all in one
be presented to the statistical de¬
kets of the major dealers. 1
upon civic rights.
Investors in
sues, the decision would, with few
direction. After the many factors
partment for analysis. y If, as a
Dealer banks, in most cases, are
some cities feel that they are just
exceptions, automatically result in
affecting the outlook for the mar¬
result of thorough analysis, it de¬
as big or important as those oh
One of acting as principal.
This those : banks Which have estab¬ ket are analyzedd'nd weighed,
Wall Street, and therefore prefer velops that a purchase or sale or would result in the dealer having lished a trading department, to
something
unforeseen develops,
exchange of one government se¬
doing their business direct with a
a
long or short position in the handle and match up the pur¬ and sentiment changes along with
dealer's head office, rather than curity for another should be made,
securities
which
he purchased chases and sales of their deposi¬ the market
overnight.
Whether
the recommendation is presented
with that dealer's branch office.
from or sold to one investor with¬ tor^ arid correspondent banks. To
or riot the sentiment and its re¬
to the investor by the salesman.
The same pride in other cities
out a simultaneous offsetting pur¬ render this service they must, as
action on the market seem justi¬
Let us assume that Salesman Jones
prompts the investor to favor that
chaser or seller of those securities any other dealer, carry an inven¬
fied
by facts, one way volume
has had the holdings of a bank
dealer who takes enough interest
tory in the form of a trading po¬ commences to run its course and
known to him.
in Texas examined, and recom¬
in the investor's business to es¬
sition.
Whereas the maintenance
I shall discuss the subject of
the dealer must be prepared to
mends that the bank sell March
tablish a branch office in the in¬
of such a position may not appear
be
the source'or depository of
position or inventory later on.
1
vestor's home town. In most cases 114 s of 1947 and buy a similar
to represent an orthodox banking
supply, depending on which way
amount of September IV2S of 1948 believe, from the foregoing ex¬
experience shows that an investor
practice, and only a few banks the market is moving. y Here is
amples, /you can ■' see that the
as a self-refunding operation. At
cannot be expected to seek service
have a trading department, as op¬
dealer acts as a middleman be¬
where the dealer must not only
the same time Salesman Smith is
by contacting a dealer's branch
posed to a bond service depart¬ have volume capacity, but a trad¬
recommending to a bank in Rhode tween investors throughout the
office located west of the general
ment
which • handles customers'
country, and as such performs a
ing position.
;
-y Island that March 11/4 s of 1947
securities transactions as a broker
vicinity of the investor's city.
function which could be likened
be purchased as a purely shortIf the dealer does not have re¬
Each of the dealer's offices is
between
customer ;■ and
dealer,
to the slogan coined during the
term issue in which to invest
tail outlets to handle a surge of
staffed with "salesmen." That title
these same banks have one con¬
war by industries when they re¬
funds coming to hand as a result
is actually a misnomer, unless its
siderable advantage over the rest supply, or retail sources to meet
ferred to their ability to produce
of maturing bills. Salesman Brown
surge
of demand, the dealer
of us.- They can use deposits in¬
meaning is strictly limited to that
as being a case of having "Know
has recommended to a Minnesota
himself must serve as a shockof selling ideas.
stead of having to borrow money
But even then
HoW." ;; Dealers could coin a sim¬
bank the sale of September iy2S
absorber
which
must be Well
the definition is inadequate when
in order to finance their position,
ilar phrase and say that they have
of 1948, because of its relative
lubricated
and
flexible iri the;
compared to the salesman Who
"Knew Who." This could be car¬ regardless of departmental book¬
short maturity and low yield and
sense of being ready to assume a:
sells the idea of a purchase of
keeping.
Most banks, including
because
the
Minnesota bank's ried a step further by saying that the Federal ^ Reserve
something and receives a commis¬
Banks, as large trading position, or in the*
dealers
have
to
have
"Know
sense
of already having a large;
sion for his ability based upon portfolio is light in longer term
What'.' when they act as principal you know, prefer to handle cusholdings which could conserva¬
according to Circum-I
tomers'and correspondents' bonds position,
the resulting profit. A government
rather than middleman. The mo¬
stances. This places the dealer jnr
in the capacity of a broker be¬
bond salesman may sell the idea tively be added to as a means of
ment they act as principal they
the same ciass with the croupier!
Now let us
tween client and dealer, with or
of a sale rather than a purchase increasing earnings.
serve as a cushion for the market,
at Monte Carlo.
If he chooses he!
assume
mat the Texas, Rhode
without charge^
; ■
and, speaking for our company,
and as such they contribute a tre¬
can
and
Minnesota ' banks
stop the wheel, but he may
receives a Salary instead of a com¬ Island
mendous stabilizing influence on
Dealers' Operations
as well drop out of the game en-f
approve of the
mission for the reason that it is simultaneously
the market, When acting in this
virtually impossible to calculate recommendations made to them.
Having mentioned the word po¬ tirely. if he is only prepared to:
latter capacity, dealers must esti¬
win; ; His major income results
the profit resulting from any sin¬ The three salesmen would con- •
mate all factors, present and fu¬ sition, it is time to say something
from having his position in proper
about operations, because a deal¬
gle purchase or sale of a bond, tact their head office over the j
ture, which will probably affect
and because it is extremely dif¬ wire system and obtain prices at1

that there are many

top of the same hill.

Volume'165

Number 4558

THE COMMERCIAL & FINANCIAL
CHRONICLE
175

.„i,

Adjustment to market sentiment
at all" times./ The indome from

ly indicates that individual deal¬
er's

inventory

tiffte

position

market values at

for

positions. Or if investors' de.sires were not instant and, in¬
stead, the investor were willing

be no

order

! Clients'

and

could

wishes

time—from

minutes

few

for

order with

•

mediate offset in

pected to make

matically
and may

order

However, the

•

dealer

"•

who

can

the

•

anticipate
-

than not

correctly
can

average

concerned,

himself

quotations

his

customers if

between

dealers: Such

establishment

the

direction

some

the

best

give

price limits

the recent

step

the

moment.

The

dealer

one

these conditions is able to use his
retail facilities rather than

being
required to immediately liquidate
his risk./ZZM/^

tax

illustration of

executed

the

speaking

only • for otir

seem

cause.

itual

to them

else

little like

concentration

write

important for

story
changes
a

headline
with

one

and

ported.

facts

often

has

well

the

variance

they

know

re¬

these

ask,

press,

•
"Whose
is it?" The

.freedom i$ the freedom
of the people to know
the truth.
Today in the U. S. the people
supreme

man¬

take

who

freedom

puts

which

may

They

Somebody

way.

spir¬

camp.

altogether

the

truths

postwar inflation

end, newspaper

have
not

very

that

freedom

exercising

but

they

because

ate

they

and

plan to help

man¬

commentators, liberal columnists
liberal newspapers to
sup¬
port them vigorously. A half used
freedom cannot be stored

wage structure

arid

j ob security.

away

Anyone who lived through thfe
dislocations of 25

years ago

indefinitely.

/ - //>/->'<•. /,./Zi / 'V./
Therefore I hope that in the fu¬
ture as in the past he
Newspaper
Guild
will
fight fof
adequate
wages, job security, a. fair atti¬

knows

the nature of the problems. The
true
statesmen- of
Management
and Labor will
try to minimize
these

dislocations, hot

Govern¬

The

the

Guild

has

forefront

movement.
dom

to accentu¬

ate them.,

to-perfectio^. Jn s4ar,t,

tude

always been in

the

progressive

It believes

that free¬

expression means more
freedom of the publishers

and

the

owners

the /radio

consensus

re¬

problems

■

have hot cared
enough for liberal /

operation I than

secure

the

guildsmen and women are work¬
ing under conditions which must

create

agement to survive with the mihihium of dainagfe to

could

liquidation/of almost

exempts,

agement

On the contrary,

toward

management,

free¬

dom of the
press, ahd above all
the freedom of the
public to know
the truth and the desire
of the
public to know the truth, For the
peace and

it is

prosperity of the world
important for the public
liberal 4suth .than the

to know the

investors; % is chains/ to "decide
^St'/what" the reactionary truth. Perhaps some¬
dealers ihtb public should know.
It believes day all of us will be
strong enough
quotations, but these quotations that freedom 6f
private institu¬ to stand the real truth. //
are simply &
/ .//■/
temporary guide. If tions means more than freedom
In /conclusion I want
the investor makes
to reaf¬
;Up his own for a few hundred
publishing and firm my faith in
thind with respect to
the potential
values, al¬ radio monopolies to dominate the
destiny of an active press. It can
ways considering the insignificant method of
translated

the

value of 32nds and 64ths in

Again

its

drastic action in order to survive.
All 6f us must

ripple in that sensitive market

parison

Offsetting Positions

de¬

years

When

years.
comes

ment trustLiund without/
making
a

know

what management is
against will be especially
great
during the next two or three

securities, mostly cohsisting of difficult-to-market par¬
tial

twice

135)

page

ernment

the

under

it makes in

prosperity

working for the most
reactionary magazines as well as
the /newspapers.
Some
of
our

understand

% billion dollars worth of Gov¬

and. may fare better for
himself in the long run if he tries
for execution at quoted, prides bf

the

gressives

it is for manage¬
ment to understood the
problems
of labor.
The heed for labor to

examples of Well in-

many

placing orders.

interest

rather ; than

frater¬

patrons."

without

advances

management

eliminating

ramifications,

great

labor

these

many

much

are

dismissal

sponsibility. It

costly weaknesses
existing operational scheme
of things.; Past
proposals to this
effect have hot, however, been
favorably accepted by ail dealers.

getting about
as
they were

They

against
These

central

prove a

now

much

ago.

in the
government bond
,

in the

desired

the

exchange floor might

Order

success, 'and will disappoint himSelf and

The

several dealers into a
gam¬
The investor can set his own

ble.

•

times

cofiSider

basis

all

or more

to t anticipate
supply and demand ahd hopes to
'/ be in a position to
give his clients
«'
Immediate service.

{quoted

force

Of course, a propo-

attempting

those

have at
have served

practice is known to the trade by
the unflattering term
/"fencihg."

dealer into his confidence and
that dealer to work On an

by a customer to a dealer
may fit the dealer's position and
the transaction -could be"
<com}pleted instantly. The dealer is always'

broker

On current

allow

made

(

capacity

that the larger the transaction the
wiser it is for the investor to take

'•

mind

financial
times beeri

tehtiohed, but poorly handled ex¬
accordingly-—against: the ecutions of
/ transactions by in¬
of the investor. - As
^ vestors who do- not
thoroughly
rule of thumbs Tt might be said
understand
the
advantages
of

especially"

sition involving a million

veloping

average

few

very

interests

capi-

tal structure.

;

IhStitutidhs
largeM reported to

Either by shopping among
the best price, or

size

the market

heavily
at

are

rendered.

tations

one

the contribution

security. You have on the whole
been remarkably successful.
Guild
men and women on
the

lor and between government bond

dealers,/charging the dealer aslisted1 l/64th of 1% for services

actually is, and the respec¬
tive dealers will adjust their
quo

adding-to

This

than it

true if ah addition to his
position
would place a strain on his

•

ever

quote

tween dealers to appear more
able as a supply or demand facto*

the added

[ Ms' position.

critical

dealer

nity in concluding with our com¬
pany's guiding slogan, "The real
test of a financial
institution is

trying to cover
short time, and

Is It?"

Going back, and concluding the
siz¬ subj ect of
quotations Which ha!

forced r into a/; gamble
adjust his prices accord¬
cover

Government bond

;

(Continued from

checking of markets by and be¬

ex-

risk that he incurs by

has

one

sale

business

possible the

a bid or offer on

ingly to partially
/

transaction may be multiplied by
the constant checking and re-

telephone rather than being
/given an order, the dealer is auto'

the

by splitting up his business and
showing parts Z of it to several
at the same
time, it ife

the

•

aware

a
big field in a
did not intend to be

a
fcommon meeting place
exchange floor for our mem-;
bers. They serve in a liaison ca¬
pacity as confidential agent, solely

dealers

mind, and is

ack of

the dealers for

proposition inVplv>
more, has no im-

million

relies too

prices.

purely from the retail standpoint.
However, when a dealer is pre¬

ing

turn

can

purchase

ecute

Mainly because of Competition,
dealers have developed the prac-

sented with

sheet
of the dealers that

investor

and

wholesale jobber,

ing opposite.
,

middlemen's middlemen and fill
; ^art of the gap resulting from the

quota-:

quotations in his attempt to ex4

tice of doing wholesale business
op a retail basis.
$1(10,000 bond
'trades are and should be treated
.

And

government

sized

store than you do when
you place

/sua

fluctuations

against himself if he has

instant service.
In
Other Words, you pay iriore for the
privilege of buying-in a retail

days, yet the

put out by any
specified the potential size
of
trades that his quotations cover.

:! hours—many times at more satis¬
factory prices than the investor
obtains

the

seen

satisfy his
very
short

direction with the wind blow¬

one

trades in a particular issue

several

active issues.

he buys or sells listed
stocks, the
'dealer * could operate without
a

position

tions for that issue will move up
and down all day long in relation

he does when

evaluated.

either directly. Or
; in
each .issue
was
indirectly.
I pedantic as might
appear. I be¬
performed, as in the case of Stock used the phrase "directly" because lieve I dan
speak for the whole
there is in the government bond
Exchange quotations. *1 doubt if
you willfever sebsuth it daily re¬ market a little known group of
cording of transactions under our, individuals referred to as govern-; \\
present system. Often there will ment bond brokers.
They are the

the

and all buyers and sellers could
have their instant desires
matched,
the dealers wouldn't have to take

place

and

transaction

change in the market.
Iff supply and demand' were in
perfect equilibrium at all times,

accepted

that
on
judgment of commented
occasions
given moment/ (usually just before the close of
The list does hot
necessarily rep¬ daily trading) our company enters
resent prices at which the last the
Sizable
inter-dealer market

simultaneously buying issues on
Ifte bid price and selling on the
asked price dan double or
evapo¬
rate, depending on the status of
the

interpretation

and

tion/

com¬

to yield,

relation

and then enlists a dealer to work
with him rather than for

and

disseminating informa¬
believes that the public

should

exercise

positive

way

continuous

its freedom

mean

for peace thah all the

diplomats of all the
foreign of¬
fices. It can contribute more
to
education than all

the Universities.
him, he aefcess to the whole truth. There-,
Or .the
press
by
himself, not fore I. am sure that
continuallly
every guildsonly ja smallpercefttage df the
r
factor presently
throwing the truth out of focus,
only results, but a knowledge of man "is
tending to force
time that/VVfe/ off set i>psitioh risks
enormously
concerned by
dealers into incurring larger
the true relationship between in-'
selecting the facts. to favor
posiwith the Ways in which liberal
by buying or selling* direetiy or vestor and
certain
tions is .the same as that
groups,
dealer.
can ; travel
which
the
commentators have been elim¬
indirectly, from other government
is having a /
downward
path v bf lost; public
tendency \6 :f cause
inated from the .air.
bond dealers. At such infrequent
They know confidence. There
is no question
/' banks to lengthen maturities in
there are only a few liberal
Causes of
v

higher aspifatidfts/

has

that/thefe/fs

Ah incidental

will demonstrate

their investment
portfolio—name¬

ly*

risky method of covering firflated operating costs. Because of
a

the vital importance of
position to

■'A 3 dealer, one
;

can

argue with logic

Purchases and Sales

times the transaction is
usually in

the form of

the

our

size

undergo
sist.

of
a

exchange whereby
position does not

change—only the

A transaction of

con¬

this nature

not

be considered in
th,e
light as one which is com¬
monly referred to as an operation

"Perhaps f t
much

time

have
to

devoted

news¬

papers/and that some
have
recently been

too

of. these

obliged/ to

the

problems of
operations without discussing the
of
purchases
and ; sales
which result in market fluctua¬

discharge
eral

cause

large number of lib¬

that; the

Guild/ will throw the
weight of its influence on the
constructive side. May it ever be
thus.:/// v/

;///"

newspaper; men.

,'..v

"Who is to. blame for the dis^
tions/ The two subjects are inters appearance/of the liberals?-"-Is/ll
its resulting from the turn
woven, though. Operations can be the advertisers? Is it the pubM'
betWeen bid and asked prices. After in/the-prof essibnalmiarket//This a large factor in
fluctuations. We lishers? Is it the working new-s-»
is an entirely different affair and
paper men? Or is it the Amer¬
all, sufficient volume should enread daily of reasons for
pins
ican people themselves who have
able the dealer to foresee a trend one which is looked upon as be¬ chases or
sales, and the opposite
Emery N. Cleaves has been
ing highly unethical. Such a mar¬ of the
and thereby allow an
lost faith in the liberals?
adjustment
very trade that is good for
f appointed
Assistant to the Presi¬
in trading positions which would ket is ofterr found when a dealer one is sound for
One thing 1 am sure of is
another. Not to
that dent of Celanese Corporation of
has a particularly
be ample reward and
long or short risk insulting your
compensaintelligence, I in the long run the people Will America,
according to a recent
position which he does not wish mention
i tion for the expense of
only a few of the more never be against the liberal cause. announcement
handling
by Harold Blaneke,
the volume,, and prices could be to- maintain, and /soio/ liquidate usual reasons
causing investors to But in the short run they may President of the
it he talks the market
corporation. One
up Or down interest themselves in the
a single/quotation rather than a
be mighty slow
pur¬
catching on, es^ of Mr. Cleaves's principal con¬
as the case
may be, and raises or chase
double bid and asked
or
sale of Governments: pecially if those of us who are cerns
quotation.
will be the
lowers his quotations to
carrying forward
support Expansion or contraction of ex¬ in position to discern
Frequently,- as -a matter of fact/
the trend of
the
his campaign. To further
company's
program
of
prices are single. The dealer in
support cess reserves or investable
of the; times don't
funds,
help. It is stockholder and investment re¬
the
campaign the dealer must, increase
an
or
active, rising or falling mardecrease
in
loans, foolish to blame the publishers lationships.
under the
;
,: ' t".
circumstances, be pre¬ change
•f
ket may buy bonds at his offered
of
portfolio
maturity and the advertisers.
They are
The Hew
Celahese executive
'/ price or sell bonds at his bid price pared to add to his position while schedule, change of portfolio quaU like the Supreme Court
only more previously had been
to get his position in tune with her is in the process of getting ity
engaged in
structure, change of tax out/ so. You will remember Mr. Doothe
independent practice as a con¬
the market trend.
quotations^ to the * level at look, stoppage of loss or realiza^ ley said the
During dull
Supreme Court al¬ sultant in
which he < will
management problems,
quietly, and he tion of profit arbitrage. This last ways followed the
markets, however, the bid- and
election re¬
making field studies for several
hopes profitably, commence liqui¬ reason is one
asked spread is the
which justifies a turns. We
only means
surely can't blame the large industrial
dating. / A professional market, separate
organizations. He
of livelihood for a
i
treatment
unto
dealer, and he
itself publishers and the advertisers for served in the
war
that volume per se should hot be
desired for the possibility of prof-

•

same

Cleaves Asst. lo Pres.

Of Celanese

•

Corp.

•"'*

•

■

/must

depend on this spread.
In
periods of extreme market fluc-

*. tuations,

uncertainty, he

widen his spreads

even

may

cautionary measure,

request

pre¬

the

investor

ftess on an order

Quotations

basis./,

Merely

must
busi•

"Indicators

which

does

can

home

one

truth

►'/this /evening,
►
.

which is

rumor

simply ink

ket

board.

quotations you may look at

mere¬

leSs in¬
one

times referred to

some

great amount of

upon

rumor.

the im¬

This is also

considered unethical, but it is not
so dangerous to the
investor be¬
cause

indicators
The particular list of

professional, is that in which ac¬
tivity is caused by Circulation of

it is that government bond dealers'
quotations are
on paper or

true

market, and

emphasis being laid

Board''

drive

represent

investor can be hurt.'
sidious type of

portance of
If I

not

picture of investment supply and
demand, is One in which the real

the quotations in the

actually
supply
and

represent

demand

mar¬

real

resulting

from the way in which the

rumor

Suffice

say

that

market stabilizer and

tablished markets throughout the
Needless to add, there are

always

the

reasons

found

for

fluctua¬

Treasury

policies,

money market conditions
and domestic or international
af¬

fairs.

turns.

world.
tions

following

arbitrage

is
practice
which, though unpopular with
some, is Conservative, profitable,
and is used widely in the U. S.
Government bond market, as; well
as, in form, in all the older es-*
a

Finally," there is that

un¬

predictable and often unexplainable factor—sentimp^t or
investor
psychology. It is like a tide in

the

That

cash

ge'ts it down

workings newspapermen.
they do?

re¬

the

mand of a

What

can

Z When

1944

found

the
and

Lieutenant

firm

ciates

U.S.N.R.,' in com¬
mine sweeping division

Pacific
he

war

theatre.

was

Robert

Prior

member of the

Heller

Asso¬

Cleveland, Management

Consultants.

He-is

Harvard University.

graduate of
/■; /;

that

nearly everywhere
publishers were for Dewey
70% of the working news¬

paper

the

campaigning

nearly every town what was the
poll in their owh newspaper shop.
I

in
the

newspapermen

was

asked

Commander,

men

were

for

Roosevelt.

Generally speaking the most

re¬

actionary

the

newspapers

had

most progressive sentiment
among
their
workers.
I
have
met
an

With

Montgomery, Stone

Bert De

Nobellis, formerly with

Adams & Peck, has become
ciated with

asso¬

Montgomery, Stone &
Inc., 57 William Street,

Peyser,
amazingly large number of pro-»New York City.

T;.<.
:

•
..

THE COMMERCIAL &
176

that even if the aver¬ can easily be changed the fol-;
^j.'!
taking the highs, didn't lowing day.
V.: /'V/P-V'aa *
*
' %
go up, the; lows kept climbing
You still hold a number of
rung by rung. Only one day,
Jan. 3, did they miss a step, stocks.
Up to this writing
when they slipped down to there was nothing in their ac¬
tion which indicated anything
174.71

will

;

Markets

Whyte

nothing or decline or advance
time
fractionally, is a market that
some usually is getting ready to do

marked

have

ment. So

fashion, lows up, highs do all

this

■By WALTER WHYTE-

Expect
immediate

of action in

stops are as follows:

;■

^7 if

While

The

first few days

of the

year showed little for
cither the bear or the bull to

new

speech

either upset the

market

cheer it up. I might

say in passing that the chat¬
tering of the ticker interfered

The last trading day
with radio reception.
If I
of 1946 the familiar average
shut the ticker off I wouldn't
made a high of 177.89 and a
know what was happening. If
low of 175.79.
The first few
I turned off the radio Td miss
feed

on. "

days of 1947 showed little im¬ something.
I
provement. Up to Saturday, promised.
I
Jan. 4, the high was 177.83;
both off pi;.'.
*
low 176.04. On Jan.; 6 (when
this
was

written)

was

high

the

finally
turned

com¬

them

things look

177.87.

eye-to-eye

! See

the matter.

fact,

will

bankers

the

be« able' to

never

■

would

actually ap¬

that Eccles and the brokers
aren't even on speaking terms,

pear

even

the

terms

which

cold,

speaking

terse

Congress to take such steps as may

required to lift the restrictions
margins; the
hopeg of the
almost beyond
all
bounds.
Eccles,
they sayy

brokers have risen

gressional

called before a Con- *
hearing of some sort;

certain questions con- :

should

answer

•

margins.

business formalities

cerning his treatment of

Eccles hasn't seen fit,

often require.

Though Eccles' influence on the \
Federal Reserve Board is con¬

for

instance, to give even a cour¬
tesy reply to the letter sent to him
on
Dec. 10 by James F. Burns,
President of
the Association of

strong in view of
only begun
his second term of 14

sidered as very

the' feet;; that he has
to

serve

stating in years as a member of the board,
Board of still he has only little more than '
margin restric¬ a year to complete his presentY

Stock Exchange Firms,

resolution form why the

feels

Governors

tions should be lifted at this
letter

Burns

The

was

time/

sent

term

four years

Chairman

of the board. He

up to Eccles, the restrictions on
margin trading will never be
lifted. More and more now, the
financial community here is look¬

Dhpt. Under A.S. Knapp

against a low of will mean
If you take a casual
tion is doubtful.
at all these figures

Eccles, Chairman of the Federal Reserve >
the question of margin trading in listed

Eccles and the

now

and

brokers

Wurts, Dulles Opens
■

178.39

'Wf-

speech
Congressional ac¬

ideas

will continue as f
the other members of the Federal a member of the board until 1958, J
Reserve Board, too, and replies of that is, but his term as Chairman
;
More next Thursday.
a purely perfunctory character, it
expires on February 1 of next
is said, acknowledging receipt of year.
The next year, • however,
—Walter Whyte
the letter and promising consid¬ could easily prove decisive as far r
eration of the question, have been as the question of margins is con-*
'
[The views expressed in this
cerned, it is felt,,
■ •
article do not necessarily at any received from some of them.
The conviction is steadily gain¬
time coincide with those of the
If some of the power of thqT:
Chronicle. They are presented as ing ground on Wall Street that Federal Reserve Board on mar- :
if the question of margins is left
those of the author only.] j
gins is transferred to Congress,

Truman's

Whether

securities, brokers and investments
banking groups and many another ever since Senator Styles Bridges,
segment of the money market, Republican, of New Hampshire
have
theirs, too, and the way announced that he would try to get

of recent and, current
the Christmas bills that to it I also looked at the stock
tape. It was soon apparent action it looks like 50. I may
now pouring in.
v
,
that there was little in the be more specific next week.

are

Marriner

Board, has his

basis

off

President of the New York Stock Exchange V-

a way out of the impasse in which it finds itself on the subAnnouncement of Senator Styles Bridges that he will try to
get Congress to take such steps as may be required to lift the
restrictions on margins buoys up hopes of brokers,
-

', s-

❖

will =3?

ject.

Stocks, purchase price

•

and

to find

positions stays in effect.

')■.

be lifted., The financial community is looking morp

Emil Schram

.to

advice to maintain

and
Anacon¬
something. Frequently this da, bought at 37; stop at 37.
future.
something means higher Take profits across 44. Dress¬
Now that the holidays are
prices. Whether or not this er Industries bought at 17,
over and you've had a chance
will happen from here on is
stop 18. Accept your profits
to mull over the Christmas
something that I can't be cer¬ across 25.. Gulf, Mobile and
cards
you've
gotten from tain of. .Where the market is
Ohio bought at 12 still carries
people you didn't send any concerned, I can't be certain
a stop at 13.
I'm not giving
to, and had to rush out and of
anything; I just ifolio w you any profit-taking price
mail some in a hurry, we can
signs and hope I don't get because I don't know what it
go back to worrying about the lost, or if I do, that I get put
is. Southern Pacific came into
.market and what it says, if
with nothing worse than a the list at 43. A week later I
anything. Naturally we'd like scraped knee.
recommended a stop of 44.
them to go up. Not only be¬
V;5-'''i'J'''Wk ii~V.:' •'/V
'S'X> J
Stock is now about 46 and
cause
everybody prefers fit,
As I was writing this the looks higher. How much high¬
t)ut what is of much more im¬
er is something for the crystal
mediate importance, is to get Truman speech was coming
over the air.
While listening gazers to tell you. On the
.some money together to pay
enough.

long

kind

Looking to Congress for Relief
;
Restrictions on Margin Trading

Eccles, Chairman of the Federal Reserve Board, the restrictions
never

„

that if the question of margins is left to Marriner S.

Belief grows

unsettle-

minor

than

A market that creeps up

Stocks

Wall Street

age,

Tomorrow's

Walter

see

;•>' *•:'

Thursday, January 9, 1947

•i>

FINANCIAL CHRONICLE

■"

PA.—Wurts,

PHILADELPHIA,

Dulles &
members

ing to Emil Schram as President
of the New York Stock Exchange

Co., 1416 Chestnut Street,
of the New York and

to find a way

only the Board will be to blame, Jr
some Wall Street observers point;,/
By lacking a flexible policy >;,
margins, the, Board is really^
displaying its incapacity to carry

out.

out of the impasse
itself on the sub¬

in which it finds

ject. Appeals to reason addressed
to the Federal Reserve Board, it

out the desires of

subject,

Congress on the

all, ac-

they say., After

cording
to
the
Board's , own
reasoning,
they point out, the

"
^

What Con¬ Philadelphia
present margin
restriction has;",
Stock
Exchanges,
is said, have failed. It may be been
applied to prevent excessive
have opened a municipal bond de¬
glance
gress will do from here on,
desirable now, it is pointed out
expansion of credit. Many in the
they mean little one way or rather than what the Presi¬ partment under the management all
around, to resort to political financial community will argue—
of Alfred S. Knapp. Also associ¬
another. (Just between our¬
mean8
to
gain the
objectives at the drop of a hat, so to speak—
dent wants, will be more im¬ ated With them in the new de¬
selves, I can't stand figures
sought.
'
that )■ excessive
credit does not
portant.; Yet, nobody who partment is George S. Burgess. )
Wall Street is expecting much exist in the stock market today,
cither.;
They either bore or reads
Mr. Knapp was formerly with
papers, or has heard the
from Washington these
days in
distract me.) fe But if you've
in fact,' that the very reverse is *
speeches ^6f the new law¬ Newburger & Hano in the munici¬ view of the new political align¬
read so far maybe Lean give
true.
'
r;;: ■
-*
pal department and prior thereto
makers, has any doubt about was manager of the sales depart¬ ment in the nation's capital and
you at least one conclusion, tuture
plans: labor legisla¬ ment for the Philadelphia office
or,
rather an v;observation.
tion, higher tariffs, tax cuts, of Charles Clark & Co.
SEC Overrules
on
Make your own conclusion.
etc., how much of these plans
All during the fading days of
; Orders readmission of R. Leeby & Co. to membership on ground 4
will become fact remains to be
G. S. Emery is Now with i:
1946 and the start of 1947 you
^
that refusal lacked "informative statement of its reason." /
*
seen.
Some of them will be¬
Wm. J. Mericka & Co.
On Jan. 7, the Securities and Exchange Commission directed the
come laws.
Others will come
H(Special to The Financial Chronicle) "'.y~
National Association of Securities Dealers, Inc., to readmit to its
in for a kicking around which
CLEVELAND, OHIO—Grenville membership Lawrence R. Leeby, doing ^business as Lawrence R,
Established 1856.,.:;.,
'■■>;!'} '
will make: for interesting
S. Emery has become associated
Leeby & Co. of Miami Beach, Fla.
On Aug. 14, 1942, the NASD ex¬
headlines and radio specula¬ with Wm. J. Mericka & Co., Union pelled Mr. Leeby from its membership, alleging his firm sold secur¬
Commerce Building, members of ities at unfair prices in violation of the Association's rules of fair and
H. Hentz &
tions by commentators!
the
Cleveland
Stock Exchange. equitable practices, and almost^
*
Members
'l >\'
Mr. Emery was previously - with a year thereafter
(on June 26,
R. H.
New
York
Stock
Exchange
'
Hirsch &*Co.
Prior thereto he 1943) the SEC itself, revoked the
; How the market will re-,
New
York
Curb
Exchange
had been with Davis, Skaggs &
firm's registration as a dealer and
gard this will be answered

Membership Issue

NASD

Co.

Murray Partner ^
In Ketcham & Nongard

■

York

New

•

•,

Cotton

Chicago

Board

New Orleans
And

Exchange

itf'
%■
U

Cotton Exchange

other

Inc.
Trade

Exchange,

Commodity

Exchanges

N. Y. Cotton Exchange

Bldg.

NEW YORK 4, N. Y.

On the basis of

in due time.

action up

it seems ap¬
parent that prices will go up.
But what is apparent one day
to

now

Co. in San

Francisco. In the past,

before entering
he

the armed forces,

Co.

Horner

With Townsend,

Pacific Coast

The

brought

Chronicle)

action

'•

Orders Executed on

LAMBORN & CO.

BOSTON,

Securities

•'';'4':v

••••/;•.

Joins Morton Seidel
^Special to The Financial

NEW YORK

5, N. Y.

Schwabacher & Co.
Members
New

SUGAR

V;; _.;

Pacific Coast Exchanges

99 WALL STREET

New

York

LOS ANGELES,

Singer
staff

York Stock Exchange

(Associate)

Curb Exchange

pany,

has

been

Morton

Staff

Chronicle)

CALIF.—Jack

added
Seidel

458 South Spring

Exports—Imports—Futures

With M. B

New York 5, N. Y.

Teletype NY 1-928

COrtlandt 7-4150

Street.

Private
San
1

DIgby 4-2727

Wires to Principal

Francisco

Monterey

—

Santa

Oakland
■

Fresno

—

Offices

O'Donohue is

Sacramento
'

B. Vick &

Street.

the

and
this
action
appeal to the SEC.

SEC stated:
"It

incumbent

upon

the

to'sustain its

admitted

been

has

partnership.
v

A Lt. Commander

general

to
.

in the United

the war, Mr*
investment experience
dates from 1923 when he joined
the bond department of the Har¬
ris Trust & Savings Bank.
Leav¬

States Navy during

Murray's

disapproval, to present

ing the bank in 1929, he later was
with Brown Bros., Harriman &

adequate reasons in addition to the
disability arising from the 1942

Co., and Harris, Upham & Co. Be¬
fore
entering the Navy he was

NASD,

are

expulsion for barring Leeby in¬
definitely from membership. The
NASD, although afforded the op¬

additional information or pro¬
vided a satisfactory basis for con¬
tinuing its exclusion order." 4

of the bond department
Bankers Life As¬
of Monmouth^

manager

the

surance

Illinois

Company

Illinois. •

any

The NASD action,

the decision

concluded, "lacks the very es¬
sence envisaged by the statutory

ILL. — James G.
procedure, namely, an informative
connected with M.
statement of its reason for reject¬
Co., 120 South La Salle
ing him for membership."

CHICAGO,

Barbara

n Co.
Chronicle)

Vick

(Special to The Financial

NASD, however, re¬
the applicant to

the portunity has not apprised us of

& Com¬

Chicago Board of Trade
14 Wall Street

rendering a decision ordering
NASD to admit Leeby, the

MASS. —Townsend,
Dabney & Tyson, 30 State Street,
members pf the New York and
Boston
Stock
Exchanges, have
added John F. Geary to the firm's
staff.

GENEVA, SWITZERLAND

•

membership,

Dabney & Tyson

PITTSBURGH

Mr.

fused to readmit

(Special to The Financial
DETROIT

CHICAGO

years,

1946.

connected with Ledogar-

wag

a lapse
of three
Leeby petitioned the
CHICAGO, ILL. — Rowland H.
SEC to again register him as a Murray, sales manager of Ketcham
dealer and broker, and the ap¬ &
Nongard,
105
West Adams
plication was granted on Oct. 10, Street, investment banking firm/

After

broker.

Smith with Dean Witter Co,
(Special to The Financial

LOS ANGELES,
non

ciated
632

Chronicle)

CALIF.—Ver-*

Smith has become
with

Dean

asso¬

Witter & Co.>

South Spring Street.

Volume: 165

Number 4558

THE COMMERCIAL
&

FINANCIAL' CHRONICLE
♦

•,«•

^ri;.^v: T/. ^ .^^^40 r A :tA;K,. >■■ 'A

INDICATES ADDITIONS SINCE
PREVIOUS ISSUE
Acme Electric
June

filed

Corp., Cuba, N. Y.

132,740

($1 par) common stock.
Waddell & Co., Inc., and First

Underwriters—Herrick,
Colony Corp.
share.

Underwriter—Henry Hall Marshall, 280
Broadway, New
To be

York.

Offering—To

offered

and

publicly at $5 ;<$

Proceeds—Company

will receive proceeds from
four selling stockholders
the proceeds from the
sale of 63,860 shares.
Company
the

sale of 68,880 shares

price of $200;

Of the

net

20,000
an

used

pay

war¬

aggregate ';

proceeds

($292,940) $50,000
loans; about $20,000
will be used for
machinery and equipment, and the re¬
mainder for
working capital.
will be

current bank

)).)■■

common

units

$1.10

per

general corporate purposes.

preferred

; t

;

American Water Works
Co., Inc., N. Y.
March 30 filed
2,343,105 shares of common (par
$5) plus
an additional number
determinable only after the re¬
sults of competitive
bidding are known. Underwriters—
To be filed by
amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld &
Co., and Shields
& Co.

(jointly), and W. C. Langley & Co.
Corp. (Jointly). Offering—Price

First Boston
:v

Aerovox Corp.,
Bedford, Mass.

and

Philadelphia

by amendment. Proceeds
—A maximum of
$15,540,000 of the net proceeds will be
applied to redemption of the
company's cumulative pre¬
ferred stock,
convertible 4% Series
A, at $105 a share.
The balance will be
added to general funds for
corporate*,
purposes including
repayment of obligations, acquisition
of additional
production, and expansion of refining,
transportation and
marketing facilities. Offering tempor¬
arily postponed.
'
;
•
Babbitt (B.
T.), Inc., New York

The

to public

by amendment. Dec. 23 the
recapitalization plan
jected by the SEC and the

Atlantic Refining
Co.,

Oct. 29 filed
293,000 shares ($100
par) cumulative pref¬
erence stock.
Underwriter—Smith, Barney & Co., New
York.
Offering—Stock will be offered for
subscriptions
to common
stockholders on the basis of one share
of
preference stock for each
nine shares held.
Unsub¬
scribed shares will be
sold to the underwriters who will
reoffer it to the
public.
Price

unit. Proceeds for

and

also will receive
proceeds from the sale of
rants for common stock to
underwriters at

offered

one

was re¬

company was allowed 30

days
in which to file
Aug. 22 filed $1,500,000 of 5%
amendments providing for
sinking fund debentures,;;?
additional
due 1961, and
payments to the various classes of
50,000 shares ($1 par) common stock.
security holders in|| volved;.. " *
' * 1
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
~ ;
Vl>
\
)f 5'
; 'fir«i■;%■ if
& Co., Chicago.
Offering—The debentures will be ofp f-rw 'W.-h-**
V. American Zinc, lead - &
fered publicly. The common shares
■Jan 7 filed
will be issuable
Smelting Co., St. Louis
;207,937 shares ($1 par) common. Under-*
upon) ? Sept. 6 filed
the exercise of stock
336,550 shares common stock
purchase warrants for purchase of
writers—Headed by Lehman
(par $1).
Un¬
Brothers, Goldman, Sachs
common stock at
derwriting—No underwriting.
& Co.; Wertheim &
$2 a share above the bid price of such
Co. and Burnham & Co.
Offering—Stock will be
1$ offered for;
Offering—*
common on the effective
Of the total
date of the registration. Com¬
subscription to common stockholders in
company Js selling 66,000 shares and re-,
the ratio of one
pany will sell warrants for 25,Q00 common
additional share for each two
maining 141,937 shares are being sold
shares to the
shares
t

♦

;

underwriters at 10 cents

Unsubscribed shares will be offered
for subscrip¬
tion to officers and directors
of the

warrant. The
remaining war¬
rants will be sold to
officers and employees of the com;
pany. Price—Debentures at 98.

$1,025,000 of proceeds of debs, for
payment of an
Indebtedness to Bankers Trust
Co., New York. Balance,
will be added to
working capital. Offering postponed.

share and 1 cent
In the State of

Arizona-Cochise Petroleum
Corp., Douglas, Ariz^
27
(letter - of notification) 500
shares (no par)
capital stock. Price $90 a share. No
underwriting? To pay
part of cost of drilling an oil
well.

preferred

If offerings are made
be made by Frederick
To complete plant and
equip¬

C. Adams & Co.. Boston.
ment and to provide

working capital.

—Manufacture of household cleansers
and lye.

Uxbridge Worsted Corp.
45,000 shares of 4% preferred

Nov. 27 filed
$100) and 200,000

June 5 filed

16,197 shares of

Underwriters—Rauscher,

Rollins & Sons Inc.
the public. Price

- •

American Broadcasting
Co., Inc., N. Y.
27 filed 950,000 shares
($1 par) common stock.
Underwriter—Dillon, Head & Co. Inc., New York. Offer¬

will be offered to

are

being sold

Basic Food

(letter of notification)

common,

•

Dec.

Manufacturing Co., Lewiston, Me.:
(letter of notification) 500 shares
($10

•

common

•

Underwriter—White,

Weld & Co.;

to retire all "

pre¬

pates it will

company antici-

the funas for its building and
expansion
program. Offering date indefinite
2

V \\'r

mon

me
-

;

(■!'>•

■

•!-

-\'i

S''r

£ ?

/'v,"". ^

•'

(letter of notification)
10,000 shares (no par)
capital stock, to "> be offered to
present stockholders.
I Price—$59 a share. No
underwriting. For additional
|capital funds for expansion purposes.

ance

•

investment.

Dec.

;
?

Bell & Gosset
Co., Morton
30 filed 105,000 shares

Drove, III.

($5 par) common stock.
Emerich & Co., Inc.) Lee
Higginson
Corp.) and Kibbon, McCormick & Co.
Offering —
100,000 shares will be offered to the
public .at $9.50 a
share. The
remaining 5,000 shares will be offered
by the>
company to its employees who are not now
shareholders
at $8.30 a share.
Proceeds—The proceeds from the sale

Underwriters—Ames,

will be used to
pay principal and interest
notes and reduce loans.
'

rrit

,->.•

^ .* "i
\

}

)

•>

debenture

)

Berbiglia, Inc., Kansas City, Mo.
Sept. 12 (letter of notification)
41,000 shares

cumulative convertible
$6 par preferred.
$6 a share.

Dec., 30

—

SPECIALISTS IN

Kans. To pay
-

to open five additional
stores in Kansas

ing postponed indefinitely.

(Continued

page

City, Mo. Offer¬

;

178)

■

State and

The

Underwriters and Distributors of

Corporate a?id Municipal

Municipal Bonds

Securities

FIRST BOSTON
CORPORATION
Boston

—

United States Government
Securities

New

C. J. DEVINE
48 WALL

York....;;.

Chicago and other cities

CO.

Pittsburgh. £
\

ST., NEW YORK 5, N. Y.

Chicago»• Boston

,»

Cincinnati

Philadelphia
•

St. Louis

•

San Francisco"

Cleveland

;

;;

Founded 1865

HAnover 2-2727

Pittsburgh:

■

Kidder, Peabody &P Co.

Members of the New York and Boston
Stock
.

New York.

Offering price,
Snyder & Co., Topeka,
outstanding indebtedness and expenses and

Underwriter—Estes,

Corporate and Public. Financing

President of Beaunit
Mills, Inc.

will

Associated Metals, Inc.,
Seattle, Wash.
(letter of notification) 200,000 shares of
com¬
mon. Price, 45 cents a
share.
Underwriting, L. A. Adams,
Kirkland, Wash.) R.. C. Rumball, J. S.
Kennedy, and
E.
Williams, all of Seattle; S. W.
Grub, Yakima,'
Wash.; and J. R. Evans, Sequim, Wash. For
purchase
and installation of mill
equipment.

•

—

of the preferred

100,00 shares of common. The
remaining 50,000
| shares of common are being sold by three
stockholders.
Estimated net proceeds of
$2,300,000 will be used by
the company to
pay off bank notes of about
$1,100,000
and to purchase additional
machinery and* equipment?
in the amount of
$1,200,000. Offering date indefinite.
,

American Soil Products.
Co., Inc., N. Y.
)ec. 27 (letter of
notification) 541,818 shares of, 7%
>referredTstock (par 500), arid
290,909 shares of Glass A
pommon (par 10(f). Latter amount includes
20,000 shares

Proceeds—Company

from the sale of all

and

•

notification)

amendment. Proceeds—Of the
total, 140,000 shares am
being sold by St. Regis Paper
Co., New York,' and the
remaining 40.000 shares are being sold
by I. Rogosin,

refinancing plan.

reserved for issu¬

Price, $16.82

'■

Philadelphia

upon conversion of preferred.

receive proceeds

shares each of $100
par prior pre¬
ferred stock and
$100^par convertible second preferred
Btock. Underwriting—Union
Securities Corp., New York.
ice by amendment.
Proceeds—Net proceeds, with
jther funds, will be used to
redeem $20,000,000 of 7%
cumulative preferred stock at
$115 a share plus accrued
lividends. Indefinitely postponed.

part of company's

—

com¬

Associates, Inc., Providence, R. I.

(letter

Beaunit Mills, Inc., New
Y'ork
'
j?$ript.. 27 filed 180,008 shares ($2.50
par) common) Under*
writer
White, Weld & Co., New York. Price

Underwriter—Newburger & Hano, Philadelphia.
Price—$25.50 a preferred
share and $12 a common share.

American Locomotive Co., New York

|July 18 filed 100,000

•

($25 par) AVz% cumulative
convertible preferred and 150,000
shares ($1 par) com¬
mon.. It also covers shares of common

/hich will be offered to
underwriter

stock"

Artcraft Hosiery Co.,
Sept, 27 filed 53,648 shares

./V

American Fidelity Co.,
Montpelier

I Dec.

George Eastwopcl, President, iri letter to
stockholders,
Dec. 22 said "we havfe" come to
the conclusion it
will
hot be
necessary to issue any additional
shares of
I

par)

896 shares (no par)
share.
No Underwriting. • Forf
either liquidation of loans
or as advances to
subsidiaries.

unexchanged shares of $6 prior stock and to
redeem its
outstanding 7% preferred stock.

Price

common.

<•

by amendment,. Proceeds—Net
proceeds Initially will
be added to general funds, however, the

Beacon

Dec..

ferred stock.

behalf of

of the
company.

Colortype Co., Clifton, N. J.
Aug. 12 filed 30,000 shares ($100
par) cumulative

Herman D. Ruhm,
Jr., President,
Price, $30 a share. Underwriting, to be
sold on over-the-counter
market through R. W. Pressprich & Co., New York);
acting as a broker) Proceeds
go to the selling stockholder.

iw>

•

Bates

.Materials, Inc., Cleveland, Ohio

v |;
5,000 shares (no par)to be offered to
stockholders; 295 shares o£
($100 par) preferred, 4,750 shares
(no par) common an<L
$50,000 10-year 5% debenture
notes, all to be offered tothe public.
Prices—$5 per common share to
stockholders;
$10 per common share to
public, $100 per preferred shareand debentures at
face.
No
underwriting. To increase*
working capital.

Nov. 26

Armour and Co.,
Chicago
July 12, filed 350,0Q0 shares (no
ing—A maximum of 100,000 shares
par) cumulative first
may be sold by com-;; preference
stock, Series A; 300,000 shares of
pany to persons, firms, or
convertible
corporations with whom the
second preference
stock, Series A, and 1,355,240 shares
corporation had network affiliation
agreements on March I common stock
(par $5).
81. The remainder will
be offered
Underwriter—Kuhn, Loeb &
publicly. Price by ; Co., New York.
Offering—The 350,000 shares of first
amendment. Proceeds—To
prepay notes payable to ac¬
preference stock will be offered
in exchange to holders
quire radio station WXYZ, to
construct broadcast trans- ; of its
532,996 shares of $6 cumulative
mitter for station KGO at San
convertible prior
Francisco and for working
preferred stock at the rate of
1.4^ shares of, first prefer¬
ence stock for each
snare of $6 prior
preferred.
f\
v"
Shares
i'"x",
y*
'
of first preference not
"r 1
^ u'
4
issued in
American Building
exchange will be sold
Corp., Dover, Del.
to underwriters. The
300,000 shares of second
Nov* 5 (letter of
preference
notification) 20,000 shares each ($10 : stock will be offered
publicly. The 1,355,240 shares of
par) 5% cumulative preferred and no
common
will be offered for
par common. Price,
subscription to common
$10 a unit consisting of one share of
stockholders of the
preferred and one
company in the ratio of one-third
6hare of common.
Underwriter—E. M. Fitch & Co., Phila¬
of a new share for each
common share held.
delphia. Proceeds—For additional
Unsub¬
machinery, - working; scribed shares of common will be purchased
capital and other corporate
by the
purposes.
underwriters.
Price—Public offering prices
;
H
*'
by amend¬
i_v/.V ' &.•$£':&
' •' »*'
ment.
%{hip ■* .w'- 'v,2VSv 7,**
J
Proceeds—Net proceeds will be used
American
s

(par

stock
(par $1).
& Co. and Bear, Stearn»
Co.; Proceeds—Will go to
selling stockholders. Priceby amendment. Offering of preferred at
end of January;
common may be
withdrawn
i

June

;
stock

common

-stock

(par $5).
Pierce & Co. Inc., and E. EL

Offering—Stock

by amendment.

Underwriters—Kidder, Peabody

common

by six stockholders.

■

Bachmann

Arkansas Western Bas Co.

common share.

the net

reimburse

•

Maine, they will

proceeds
to/company will be used to.
company for expenditures incurred in theJ
construction and
equipping of a new plant at Clearing^
111. The balance will be
added to general funds. Business

Price—By
Offering in¬

capital.

Dec.

each of pre¬
a;

Proceeds—Working

definitely postponed.

Air

Lanes, Inc., Portland, Me.:
Oct. 9 (letter of
notification) 15,Q00 shares
ferred arid common.
Offering price, $10

000

company

amendment.

Proceeds—Company will

use

by certain stock¬
holders. Price—By
amendment, Proceeds—About
$500,-;

held.

V)') BbsroN X

;

Philadelphia

Exchanges
-Chicago

;

THE COMMERCIAL &

of offering)

(Showing probable date

.'L'

1947
of America—_Pfd. and Common

January 9,

Intra-Video Corp.

;»——Capital Stock

Magnacorda Corp/—.

1947

January 10,

Republic Indemnity Co.

of Am.—pfd. and Common
13, 1947

January

Corp., Ltd. J.
J— Common
Cristina Mines, Inc.
———I,—Common
Canadian Admiral

'-'.-'""January 14, 1947

•

Capital Stock

(Wm. H.) Corp
Public Industries, Inc
Harman

Pfd. and Common

—

1947

January 15,

Corp. —o_„—Debentures
Curtis Industries, Inc.—
-—Preferred

General Phoenix
Helene

Pantasote Co.
Swift & Co.

Common
.—————^.Debentures

—

l—

1947

January 16,

& Carbon Co
Frontier Power Co. Li————

.Common
.Common

Old Town Ribbon

1947

January 17,

Birmingham Electric Co.

—...—.....Preferred

January 23, 1947
Alabama Greatj Southern., RR.
'

(3 p.m. EST)

.————Equip. Trust Ctfs.

Cincinnati, New Orleans & Texas

Pacific Ry.

—..Equip. Trust Ctfs.

(3 p.m. EST)

January 27, 1947

—Common
Debentures

South West Corp..—..
Firestone Tire & Rubber Co
Central &

1947

February 3,

Continental

Car-na-var Corp.

Common

....

Book-of-the-month Club, Inc., New York
Oct.

filed

300,000

capital stock.
New York. Offer¬

($1.25 par)

Underwriter—Eastman, Dillon & Co.,
ing—Of the total, the company
and six stockholders,

dent,

Meredith Wood, Vice-President, are selling
200,000 shares.
Price by amendment.

and

remaining

the

Proceeds—Company will use

ing capital to be
paper

its net proceeds for work¬

used for expansion of inventories

and other raw

(F. E.)

Booth

Dec.

common.

materials and book inventories.

Offering date indefinite.
•

is selling 100,000 shares

including Harry Scherman, Presi¬

. i

Co., Inc., San Francisco

34,344 shares ($1 par)
underwriting. To augment

(letter of notification)
Price, $1 a share. No

working capital.

Industrial, Public Utility, Railroad
and

Municipal Securities

Hemphill, Noyes C& Co.
Members New York Stock
NEW YORK

PHILADELPHIA

ALBANY

PITTSBURGH

Exchange

CHICAGO

TRENTON

INDIANAPOLIS
WASHINGTON

FINANCIAL CHRONICLE

Thursday, January

9, 1947

•

■>'..

j1!'.

••'■'••

Volume 165

Dallas

Number 4558

(Texas)

«.\! "

Railway & Terminal

•'

''',

■

Co.

shared of 7%

preferred stock

and for purchase of
as

filed

stock.

indefinite.

/v'h;

y.y

amendment. V

are

Dec. 30

(letter of notification)
$35,000, first mortgage
sinking fund bonds. Frice, $100 a unit. No
underwriting.
For retiring
outstanding mortgage and to rehabilitate

ber,

Inc., Brooklyn, N. V.

Mark

■

Empire Mlllwork Corp., New York.
/■
Aug. 28 filed 50,000 shares of $1.25
cumulative converti¬
ble preferred
stock, (par $25) and 150,000yshares of
common
stock
(par $1). Underwriters—Van
Alstyne*
NdCl & Co.

Proceeds—Corporation will receive the pro¬
ceeds from the issuance of
50,000 shares of the common
stock which will be used
to increase productive
capacity,
add new lines of
products and expand the business. The
remaining 100,000 shares of common stock and
the pre¬
ferred shares will be sold
by present stockholders. Of¬

pre¬

ferred ($100
par).
Price—$100 a share. Underwriter—
Richard Meade'
Dunlevy Childs, Boise, Idaho. Proceeds
to retire debentures
and for expansion
purposes.

JFarquhar (A. B.) Co., York, Pa.
i Sept. 26 filed
30,000 shares ($25 par) cumulative con¬
vertible
preferred; 45,000 shares ($5 par)
common; and
an
common

shares to permit con¬

of the preferred. Underwriter—Stroud &
Co.;
Inc., Philadelphia. Price—By
amendment. Proceeds

—

Proceeds will be used to
redeem $355,350 4%%
sinking
und

mortgage

bonds,

certain" contracts

and

duel Aug.

£800.000 to reduce principal
«r

•"

1957,

chattel mortgages of

'\\\*

pay

$72,000 and
v* \ '

*-*•

25, filfed i00,000 shares ($5
par) class A

stock and

Each

lares

ell

class A

stock

of common stock.

initially

►Ubliely at $8.10

convertible into

Underwriters—-Herrick^

Co., Inc.* New York.

Offering—To

Wad-/

offered

Proceeds—$201,-*

00-for retirement of
2,010'shares ($100 par) preferred
;<M?k at $100 a
share; remaining proceeds, together with

ther

tlms.

funds,
•

Will be used for production of
educational
v:y/ y v ;; ':5 V'
W5yyy-y-■::y -M ;V 5,v-V, ty, /y... V;,5:

Firestone tire & Rubber Co.
Ian

filed

$25,000,000

25-year

(1/27)

debentures

due

1972.

rnderwriters—Harriman Ripley

& Co. Inc.; New York;
Inc., Cleveland. Price—By amendment,
roceeds—For redemption of
250,000 shares out of
id Otis, and Co.

outstanding

shares-of 452%

4l4,r
preferred (cumulative)

$105 a share plus accrued
dividends. Business—ManiiCtUre of rubber
tirbs and tubes. / - V
5 V ..,5.: ;''.55

reserved for

are

stock

Dec.

share.

selling stockholders.
Underwriters—Van
Alstyne Noel & Co. * Price by amendment.. Proceeds—
selling stockholders. Offering temporarily postponed.

Graybar felfe&tric Co., Inc.,

New York

9 filed voting trust certificates for
15,000 shares
($20 par) common.

Jan.

•

liVestSrh Cori)^

Great

Jan.

(ietter of notification)

cbninibn. Price,
expense and

a share.

220,000 shares

($i jjar)

No" underwriting, For plant

working capital.

Griggs, Cooper & bo., St. Paul, Minn.
Sept. 3 (letter of notification) 12,000 shares
($1 )p8f)
common,
share.
Proceeds
modernization program.
^

For

—

Co., Inc., St. Paul.
improvement and

l..

;

-*>

•

"vv

r -1

•*

V'f

$4.25 cumulative preferred

($100 par), with non-detachable
common stock
purchase warrants entitling
registered holders of shares
the $4.25 preferred to
purchase at any time
64,750

added

general

corporate
:,/

•

•;'-

Buckley Bros., ,Los Angeles, will be sold by

one

of the

following firms: Buckley Bros.; Durand &
Co;, Tucson, Ariz.; J. Earle May & Co.; Palo Alto, Calif.

Hy-Grade Supply Co., Oklahoma City
Dec. 3 (leter of notification)

54,350 shares of cum. con v.
preferred arid 50,000 common stock purchase warrants.
a preferred share and 2 cents a warrant.

Price—$5.50

Underwriter—Amos Treat & Co., New York. To exer-i
cise options for purchase of five
variety stores, to retire
notes and for working
capital,
' 'V'

Illinois Power Co., Decatur, III.
June 17, filed 200,000 shares ($50
par) cumulative pre¬
ferred stock and 966,870 shares
(no par) common stock.
Underwriters—By competitive bidding. Probable bid¬
ders include Blyth &
Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and W. E.

Button & Co. (jointly). Proceeds—Net
proceeds from the
sale of preferred will be used to reimburse
the

pany's treasury for construction expenditures.
ceeds from the sale of

com¬

Net pro¬

common will be
applied for re¬
demption of 5% cumulative convertible preferred stock
converted into common prior to the
redemption
date. The balance will be added to
treasury funds.
Company has asked the SEC to defer action on its finaricirig program because of present market conditions.

not

Offering indefinitely postponed.

Groller Society,
Inc., New York
July 29 filed 18,500 shares at

Proceeds—To

Hollywood Colorfilm Corp., Burbank, Calif.

liic., Milwaukee, Wis.

ble preferred stock series A
($20 par) and 150,000 shares
(10c par) common, all issued and
outstanding and being
Sold by eight

(1/15)'

Oct. 16 (letter of
notification) 119,500 shares of ($1 par)
capital. Price, $3 a share. No underwriting
contract, how¬
ever, 55,000 shares to be issued to or
through H. R. O'Neil

temporarily postponed.

lndustrles

60,000 shares

-funds.

—

Glen

5 filed

;

„

($5 par) 50-cent cumulative
preferred, Series A, and 120,000 shares ($1
par) common* reserved for conversion of preferred.
Underwriter—Simons, Linburri & Co. Offering—Coriipany will offer 40,000 shares of preferred to
employees
-at $9.50 a share and
20,000 shares to the public at $10 a

purchase warrants.
Underwriter
Van
Alstyne, Noel & Co. Offering—The 300,000 shares are
issued and
outstanding and being sold for the account
of certain stockholders.
Company has also issued 55,000
stock purchase warrants to the
selling stockholders at
10 cents a share
entitling them to purchase up to Aug. 1,
1949; common stock of the company at $11 a share. Price
by amendment. Offering

stock

a unit consisting of one
share of class A

fcock and one
share of common stock.

Price—$25

00,000 shares (10 cent
par) common stock, of which
100,000 shares reserved for
conversion of class A.
of

55,000 shares
cise

common, of which
issuance upon the exer¬

Underwriters—Kalman

Films Inc.* * New York

lare

Aiig:. 28 filed 355,000 shares ($1 par)

convertible

:y^V^ y5?.:

York

off

outstanding bank loan*

Helehe Curtis Industries^ Inc.

publicly. Of

supply. Business

—Operation of health resort.

development.

July 31 filed 50,000 shares. of $1.25 cumulative converti¬

Fa Ik

unspecified number of

Daniels & Co., Toronto. Price—40 cents

1%*$ Glensder Textile

postponed,

Mercantile! Co.; Ltd., Boise, Ida.
(letter of notification)
3,000 shares of 4% %

Curtis, Boston.

(Canadian; Funds). Proceeds-^-For mine

—

•

of the preferred and

will be offered

common

ceeds will be used to build and
equip hotel and health
facilities and to acquire a mineral water

Glencair Mining Co. Ltd.,
Toronto, Cavi.
bct;/2 filed 300,060 shares
($1 par) stock.; tinder writer-

;

stock.

common, 9,998 shares Will be issued td
Charles J. Van Ruska in
payment for promotional serv-*
ices and a 99-year lease on real estate
assigned to the
company, and one share each will be issued to, Tom A;
Corbett and Emil M. Van Sant for
services. All three
men are officers of the
company. Price—$10.15 a preferred share and $10 a common share.
Proceeds—Pro¬

;

Price by Amendment.
iise part of the proceeds to pur¬
chase 25,000 additional shares
($5 par) .capital stock, Ot
$10 esich, of thfel Stuyvesant insurance
CO., a subsidiary.
The balarice Will be added to
general funds.

Dec. 31 filed 5,000 shares
($100 par) 5% non-cumUlativ

equipment. *

Underwriting—None. Offering—All

are

common

existing stores. Offering tem¬

Proceeds-^Company will

preferred. Underwriters—None,
Offering—To be offeree
at par to
customers, officers and employees of the com¬
pany. Proceeds
For corporated
purposes including
Modernization and improvement of the
manufacturing
plant and machinery and

Jacksoii

par)

Institute, Inc., Hot Springs, N. Mex.

40,000 shares of the
the remaining

New York (1/15)
Dec.127; filed $2,066,000 15-yehr 4% Cohvertible: Subor¬
dinated debentures, due 1962.
Underwriter—Paine, Web¬

feast Orange Post No. 73
Inc.-. (The American
:tuf§4Legloii Dept. 6f New Jersey), East' Orange "

version

Health

being sold by three stockholders, in¬
cluding J. G. White & Co;, Inc.; New York, which is selling all of its holdings of sucli stock.
Following the sale
of it$ holdings J. G. White
will no longer be
parent of
Frontier. Coiiiphhy Will receive hone of
.the proceeds.

($1

Dec. 16, filed 50,000 shares
($10 par) 5Y2% cumulative
prior preferred and 50,000 shares
($10 par) common.

Trinidad, Colo. (1/16-21)
6ct. 25 fiied 119,431 shares/
($5 par) common; tiriderWrit#r5-Sills, Minton & co. Price by amendment;: Pro*

machinery,'plant renovation and working capital.
Offering date indefinite.

Offering date indefinite.

For

Inc., Los Angeles

100,000

porarily postponed. 1

Frontier Power Co.*

ceeds~>Shares

filed

To be offered to the
public at $8 a share.
ProceedsCompany is selling 60,000 shares and stockholders are
selling 40,000 shares. The company will use its
proceeds
to pay the costs of
opening additional stores and to ex¬
pand merchandise in its

potatoes, plant expansion, addi¬

Underwriters—Van Alstyne, Noel & Co., New
York, and
Johnston, Lemon & Co.* Washington, D. C. Offering—

tional storage facilities, research and
development work
and working
capital.

of commciri
purchase warrants
covering 50,000 shares of common.r Offering—Price $3 a common
share and five cents
a warrant.
Underwriter—Amos Treat & Co., New York.

Oct. 21

Hartfield Stores,
June

Roland E. Fulriier and Louis H.
Newkirk, Jr., are selling
the remaining
100,000 shares. Price—$6 a share. Proceeds
—For purchase of sweet

| Dura site Corp., Clearwater,
Oct 11 (letter, of: notification) 99,006 shares
and

fering temporarily

Under^
writer—Newkirk & Banks, Inc.
Offering—Of the total
company is selling 350,000 shares and two
stockholders,

...

brewery,

share for share

Dry Foods, Inc., Columbia, S. C.
Aug. 30 filed 450,000 shares (10# par) common.

(William

filed

ceeds—Will be applied to the
purchase and installation
machinery and equipment and to the carrying of in¬
ventories and receivables.
Additional
working capital
is expected to be made
available under a credit
agree¬
ment with the Chase National
Bank.
*
>

Fresh

($100 par) stock,

making exchange

pdr) coirimon/ Under¬
Co., Chicago. Price by amend¬

H.) Corp., Phila. (1/14)
300,000 shares of capital stock. Under¬
write*—Smith, Barney & Co. Price by amendment. Pro¬

Nov.

Proceeds—Approximately

capital.

fedelbrew

Harman

$1,060,950 for redemption of class A
preferred; balance
for expansion,
working capital, etc. Dividend rate and

—

■

offer to holders of Class A
preferred
basis plus a cash adjustment.

—

headquarters.

—

post

Foster & Kleiser
Co., San Francisco
"
July 29 filed 100,000 shares of $1.25 cumulative con¬
vertible preferred stock
(par-$25). Underwriter—Blyth
& Co., Inc.
Offering—Underwriters

\
Detrolt Typesetting Co., Detroit, Mich.
Sept. 25 fiied 70,920 shares
($1 par) common. Under¬
writer
C: G. McDonald &
Co., Detroit. Price
$5.50
a share.
Proceeds
Stock is being sold
by six share?
holders
who, will receive
proceeds..
For
working

price by amendment.
Indefinitely postponed.

price—$100 a share. No underwriting. For
purchase
machinery, equipment, tools and for payroll.

1 '

y;;-:v5

E>eepWells,lnc., Tulsa, Okla.
Jan. Z (letter'of
notification) 240 shares

ment.

Chicago

($1

Proceeds—Net proceeds will be used to
recteiBM
its outstanding 6%
cumulative preferred stock at an
estimated cost of
$213,258, exclusive of accrued divi-*
dends.
It also will use
approximately $402,000 toward
the purchase of a
manufacturing plant in Chicago; bal¬
ance for
working capital. Offering date indefinite.

Foreman Fabrics Corp., New York
July 29 filed 110,000 shares ($1 par) common
stock, fell
outstanding. J Underwriters—Cohu & Torrey. Price
by

■

Instrument Co.,

writer: Paul H. Davies &

new

Offering date

■

Hammond

Aug. 8 filed 80;000 shares

Price by

Proceeds—To be used

62,000

'?'

& Co.

to redeem
15-year
3^% sinking fund debentures, due
1959; and $2.50 cum¬
ulative preferred at $53 a share.
Balance will be added
to working fcapital.
Temporarily postponed.

Boston.

Underwriters—Eastman, Dillon

amendment.

shares ($25 par) 5% cumulative
convertible preferred stock and
71,950 shares (par $2)
common stock
40,000 by company and 31,950
by certain
Stockholders. Underwriters—Paul H.
Davis & Co.; and
ShillinglaW, Bolger & Co., Chicago. Price by amendxherit.
FrbcCeds-^-Company will use proceeds, together
With a
$1,000,000 bank loan, to purchase
machinery;
buildings and to retire bank indebtedness.

179

Fair

Stores, Inc., Philadelphia
Aug. 5 filed 60,000 shares ($15 par) cumulative
preferred

part of its modern¬
:.' y
y; v'
"

Danly Machine Specialties, liie.f
tl^ro, III.

July

Food

Nov.; 27 filed 40,000 shares
($25 par) 5% participating
preferred stock'.
Underwriters—Names to be supplied
by amendment.
Probable
Underwriters—Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane;
Rauscher, Pierce & Co. Price by amendment.
Proceeds
-/-Proceeds will be applied to the
redemption of 3,843

equipment and for construction
ization; and expansion
program.

THE COMMERCIAL &
FINANCIAL CHRONICLE

International Dress

Co., Inc., New York

Aug. 28 filed 140,000 shares of
Underwriter—Otis & Co.

common stock (par $1).
Offering—Price $10 per share.
will receive proceeds.

Proceeds—Selling stockholders
Offering date indefinite.

shares of common stock at
$16 a share at the ratio of 3%
shares for each preferred share
held; and 120,000 shares of $1
par common stock.
Underwriters—H.
M.
Byllesby and Co., Inc.
Offering—Underwriters to
purchase from the company
18,500 shares of preferred
and 20,000 shares of
common; and from Fred P. Murphy
arid J. C.
Graham, Jr., 100,000- shares of issued and out¬
common

standing common. Prices, preferred
$100 a share; com¬
mon
$14 a share.
Proceeds—To retire $6 cumulative
preferred, pay notes, discharge a loan.
Indefinitely post¬
poned.,, / /'v.
J- •" v. ..a',

"i 'S::

•v!>

Vv
,7

Gulf Atlantic

•

,..v

•

" •>

\\
V"

••

r-\'.

■

Transport'n Co., Jacktonvllla, Fli.

Jan; 17 filed 270,000 shares of

common

stock

(par $l).
Underwriters—Blair & Co. Offering—Stock is
being of¬
fered to present shareholders at
$3 per share. - Holders
of
approximately 200,000 shares have agreed tb walvb
their preemptive
Hghts. Offering date indefinite.

Iiiter-Mountain Telephone Co., Bristol, Tenn.
19 filed 47,500 shares
($10 par) common.
Under¬
writers—Headed by Alex. Brown & Sons,
Baltimore, Md.

Dec.

Offering—The shares will be offered for subscription to
stockholders at $10 a share in the ratio of one

common

nfew share for each share held.
be sold to underwriters.
usled

Unsubscribed shares will

Proceeds—Proceeds will be
pay off $250,000 bank loan and for property addi¬
and
improvements.
\

"'"V
.

tions

a.:-

v.;v

•

intra-Video Corp. of America, N. Y. (1/9).
Jan. 2 (leter of
notification) 55,000 shares each ($1 par)
30# cumulative convertible preferred and common

(par

5#).

Price, $5

ferred

and

one

unit,

consisting

one

pre¬

share,of

common. No
subscription for
less than 50 units will be
accepted. For payment of ob*
for working capital.
1; >v.

ligations and

(Continued

page'

;
V

c'.'[■*''

>■'

.•

1 ■*>, '•> J.

[•

l~.

Josten Manufacturing Co.,

•

/.(Continued from page 179)

J.1

••

"•

(letter of notification) 10,000 non-voting shares
common on behalf of Daniel
C. Gainey, President.

Dec. 26
of

Price,

share.

Toronto, Canada '■
Dec. ,3 filed 1,000,000 shares (no par) common.
Under¬
writer—Jack Kahn, New York.
Price—70 cents a share,
the underwriting discount will amount to 21 cents a
share.
Proceeds—For exploration and development of
mining property and for administrative expenses.
Kiwago Gold Mines Ltd.,

bids for the purchase

VMad* Yellowknife Gold Mines, Ltd.,

postponed.

company

McKeesport, Pa.

' r: Z

Chicago

7 filed 250,000

shares of capital stock

the

($2.50 par) com¬
mon shores. Underwriters—First Boston Corp., New York,
and Lee Higginson Corp., Chicago. Price—By amend¬
ment. Proceeds—The stock is issued and outstanding and
is being sold by shareholders. Names of the selling
stockholders and the number of shares to be sold by each
Sept. 27 filed an unspecified number

will be supplied

(par 40c>

company.

Offering—Stock will
(Cana¬
Proceeds—Proceeds, estimated at $75,000,
v will be used in operation of the company.
offered publicly

in the U. S. at 40c a share

National

•

Magnacorda Corp. of America, Brooklyn

part of its
used for property
i' *** V'
- - ,1'1 'X' 7 i *'
•'
Old Town Ribbon & Carbon

.■

Price, $12 a

(1/9)

Maine

July 11

($5

warrants.

par).

A.
shares ($1 par) common and 40,000
Underwriter—Floyd D. Cerf Co., Inc., Chicago.

Orange-Crush do Cuba, S.

Offering—Price $4.75 a

England Gas and Electric

share.

Proceeds—Of the total

stockholders are
its proceeds
1

is selling 37,500 shares and
selling 87,500 shares. The company will use
company

maximum of 1,568,980 com¬

for

Underwriters—By amendment.

Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody & Co. (jointly).
Offering—Bonds and common stock are being offered in
connection with a
compromise recapitalization plan

150,000 shares

equipment and
Oro

working capital.

Yellowknife Gold Mines

Ltd., Toronto, Cani
capital stock/
Price—60 cents
and exploration and

filed 2,000,000 shares ($1 par)
Underwriter—Tellier & Co., New York.
7

Jan.

share.

; a

Proceeds—For expenses

development.

approved by the SEC, on June 24, 1946, which among
other things provides for the elimination of all out¬
:
Pacific Power & Light Co.,
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000 X July 10 filed 100,000 Shares ($100
Underwriters—By amendment. Probable
of new common shares. Bids for the purchase of the r
Blyth & Co., Inc., White, Weld & Co.
bonds and the common stock which were to be received

Portlandr Ore.
par) 'preferred stock.
bidders include
and Smith, Barney St
First Boston Corp., W. C. Langley. & Co.;

Co. (jointly); The
withdrawn Aug, 12.
Harriman Ripley & Co. Offering—Company proposes to
SEC provides
Manning, Maxwell & Moore, Inc.
,
for the issue of 77,625 convertible preferred shares (par J issue the 100,000 shares of new
Nov. 27 ^liled* 160,000 shares * of J $12.50 pari common*
$100) and I#46,01I common shares (par $8). Under the $ pose of refinancing at a lower dividend rate the
outstanding preferred shares of Pacific and the 47,808
Underwriter—Hornblower & Weeks, New York.
Price
proposed plan consolidated funded debt would be pracpreferred shares of Northern Electric Co., in
tically unchanged from that provided in original plan,
by amendment.
Proceeds—Proceeds will be used s to
with the proposed merger of Northwestern into Pacific.
repay $1,000,000 in bank loans with the balance goingf the Association to issue $22,425,000 coll. trust bonds.
In connection with the merger, the outstanding preferred
into general funds.
Offering temporarily postponed. ;.
• These bonds and preferred stock may be sold, subject
to an exchange offer, to the holders of present deben¬ I stocks of Pacific and Northwestern will be
&;■'$, \
T: fr
**"7
i,S\ J
1
) 'V7}'
JJ
'$?.
share for share, with cash adjustments, for the new pre¬
tures on a par for par basis. Present preferred would
o
.Mercantile/Acceptance Corp. of Calif.San
ferred stock of Pacific, the surviving corporation. Offer¬
receive for each share held 8 shares of new common with
Francisco 7/17/;
7/777
ing price—To be supplied by amendment.
rights to subscribe to 5 new common shares at $9 per
Jan. 3 (letter of notification) $20,000 5% series first,
share. The present plan does not affect the status of
preferred. Price—$20 a share. Underwriter—Guardian
pal Blada Co.; Inc./ New ;Yprk;.//7 7
original plan, but determination as to which will be used 5
Securities Corp., San Francisco. For corporate purposes.
will be left to the SEC hnd the court.
Hearings on the
June 28, 1946 filed 227,500 shares ($1 par) capital
' '$i
tt'-'-Wir.
V.
alternate plan are scheduled by the SEC for Dec, lp.
f Underwriters-r-F. Eberstadt & Co., Inc. ;
:
•••■'
Meyer-BIanke Co., St. Louis, Mo.
v
V/: .V
225,000 shares are outstanding and are being sold by
"

X. •'

,'p-

•'

••

vW.^.

••

•

••

i-'

*•>"+'

the

company

An alternate plan

•.

••.

Aug.

were

filed Nov. 25 with the

preferred for the pur-

67,009

connection

••

exchanged

stock,
Offering—.
10
/stockholders,'and 2,500 shares are being sold by A. L.
Marlman to all salaried employees. Issue may be withdrawn;
7SJ /;/ k
7.

Noyl;; 29 (letter of notification) : 1,200' shares (ho /par) ?: / New York State Electric & Gas Corp., Ithaca
common, 50% on behalf of George A. Meyer Finance Co.,
§^v;N. Y.
\>./;/•'
St. Louis; and 50% on behalf of Robert L. Blanke, Jr.
Oct 30 filed $13,000,000 first mortgage bonds, due 1976,
and Marian Blanke, both of University City, Mo, Price—
and 150,000 shares of ($100 par) cumulative preferred.
Palmetto Flbre Corp., Washington, D. C.
$31 a share. Underwriter—Smith-Moore & Cp.* £>t.< Louis.
Underwriters—To be determined by competitive bidding.
August 16 filed 4,000,000 shares (100 par) preference
Probable bidders include Blyth & Co. and Smith, Barney
Michigan Gas & Elec. Co., Ashland, Wis.
stock.' Underwriting—Tellier & Co., New York. Price
& Co. (jointly); First Boston Corp. and Glore, Forgan &
June 24 filed $3,500,000 of series A first mortgage bonds,
Cp. (jointly) and. Halsey, Stuart & Co. Inc.; (bonds only).; ;50 cents a share. Proceeds—The company will use
due 1976; 14,000 shares ($100 par) cumulative preferred • Proceeds—Estimated proceeds of $28,000,000,
together r mated net proceeds of $1,473,000 for purchase of a new
factory near Punta Gorda, Florida, at a cost of
stock and 120,000 shares ($10 par) common stocK.
with a $6,000,000 contribution from NY PA NJ Utilities
Un¬
derwriters—To be determined by competitive bidding,
$951,928. It will set aside $150,000 for research
Co., parent, will be used for redemption of $13,000,000
Probable bidders include Blyth & Co., Inc.; Kidder, Peavelopment purposes and the balance will be
as
of 3%% bonds, due 1964, and 120,000 shares. ($100 par)
5-10 % cumulative serial preferred and to finance new
operating capital.4 *•
, ,
. /
'
■
^
1
body & Co.; The First Boston Corp.; Harris. Hall & Co.
constructions.
'
'
*"
- - ;
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Pantasote Co., Passaic, N. J. (1/15)
Haupt & Co.
Offering—New preferred will be offered
Northwestern Public Service Co.
on
a
share for share exchange basis to holders of its
Dec. 20 filed 50,000 shares ($1 par) common.
Under-j
outstanding 7% prior lien, $6 no-par prior lien, 6%
writer—Van Alstyne, Noel & Co., New York. "Price—■
Dec. 20 filed 26,000 shares ($100 par) cumulative pre¬
preferred and $6 (no par) preferred. Of the common
ferred and 410,000 shares ($3 par) common.
Under¬ By amendment. Proceeds—For construction
ware¬
stock being registered, company is selling 40,000 shares,
writers—To be supplied by amendment.; Offering—The
house, purchase of equipment and for
Middle West is selling 57,226 shares and Halsey, Stuart
Business—Manufacture of artificial leather and 1amnew preferred will be offered in exchange to holders of
& Co. Inc., New York, is selling 22,774 shares.
Proceeds
the company's 7 % cumulative preferred and 6 % cumu¬ ,inated fabrics.
i
»,•
.
,—Michigan will use net proceeds from bonds to redeem
lative preferred, on a share for share basis.
Shares not
Peninsular Oil Corp., Ltd., Montreal, Canada
$3,500,000 3%% series A first mortgage bonds, due 1972,
issued in exchange and all of the common shares will
at 106.75 and interest.
Net proceeds from sale of com¬
be sold to underwriters.
Of the total common, the com¬ / Sept. 3 filed 600,000 shares of common (par
writer—Sabiston Hughes, Ltd., Toronto, Canada. Price-/
mon and from shares of new preferred not issued in ext pany is selling 110,000 shares and the remaining 300,000
change will be used to redeem $375,000 3%% serial de- ' shares are being sold by Bear, Stearns & Co.
Price—By 60 cents a share. Proceeds—Net proceeds will be used
bentures, due 1951, at 101.2 and interest.
It also wilLl amendment. Proceeds—The company will use its pro¬ ; purchase drilling machinery and;
redeem at 105 and accrued dividends all unexchanged
ceeds to redeem old preferred stock.
Peruvian International Airways, Lima, Peru /
shares of orior lien and preferred stocks.
Dec. 5 filed 477,122 shares ($7 par) 50-cent
//' Northern Engraving & Mfg. Co., La Crosse, Wis*
Monmouth Park Jockey Club, Oceanport, N. J.
Aug. 29 filed 70,000: shares ($2 par) common stock. ; preferred and 238,561 shares ($1 par) common.
Dec. 5 filed 16,000 shares ($50 par) 5% cumulative con¬
Underwriter—Cruttenden & Co.
Offering—All shares writer—None stated. Offering—Shares will be offered
vertible preferred and 633,500 shares (lc par) common.; *
publicly, in units of two shares of
are issued and outstanding and being sold for the account
and one share of common at $15 a unit.
The
Underwriter—Unsubscribed shares and additional shares
of present holders.
Price—$16 a share. Proceeds—To
also may offer the shares other than by unit at a
to a total of 315,000 will be purchased by the Monmouth
selling stockholders. Offering temporarily delayed.
of $7 a preferred share and $1 a common share.
Corp., formed last May to finance construction of the
—To increase capital for expansion
of proposed
racing plant.
Offering—Company will offer present
Northern Indiana Public Service Co.
common stockholders the right to purchase 387,500 addi¬
/ route connecting Peru and
*
Aug. 28 filed maximum of 384,016 shares of common
tional common shares at $4 each in the ratio of 1^4
stock. Underwriters by- amendment as shares will be V/::.' Petroleum Neat & Power Co.,
shares for each share held.
Price—$4 a share. Proceeds *
offered under competitive bidding. Probable bidders in¬
Dec. 30 filed 912,464 shares ($2 par). common.
*—Part of the funds will be used to redeem 25,200 shares
clude Blyth & Co,, Inc.; The First Boston Corp.; Stone
writers—None. Offering—Shares will be offered;
of $50 par 4% non-cumulative convertible preferred held
& Webster Securities Corp., and Harriman Ripley &
change for entire outstanding capital stock of
by Monmouth Corp.
A 'balance due on construction ,
Co., Inc. (jointly). Of the shares registered, 182,667 are
fining Co., consisting of 8,946 shares; (no par)
work will be paid by distribution of 14^636 shares of the"
being sold by Midland Realization Co.; 54,426 by Mid¬
with an underlying book value of $2,458,224 as
new preferred to F. H. McGraw & Co.v and subcontrac¬
land Utilities Co., and 146,923 by Middle West Corp. ^
tors.
Business—Operation of race track. :1 ■ ■;
•
.....
■
"
:■■■■ ■
.
■

;

Jply 22 filed 125,000

Bidders may include

Co., parent of Maine Public Service, in compliance with ?j
geographic integration provisions of the Public Utility
Holding Company Act. ' •
by

■

(1/16-21);

filed

";:;ment.5;^

business enterprises and to the negro

fund Series A bonds, and a
mon

Public Service Co., Preque Isle, Me.

filed

-—The

140,900 shares ($5 par) common. The
are being sold by three stockholders* Underwriter
First Boston Corp., New York. Price—By amend*

Wash¬

Association
filed $22,500,000 20-year collateral trust sinking

New

($10 par) * capital stocks
Underwriters—To be determined through competitive
bidding.
Probable bidders include The First Boston
Corp.; Kidder, Peabody & Co., and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co; Coffin & Burr and
Merrill Lynch, Pierce, Fenner & Beane. Proceeds—The
shares are being sold by Consolidated Electric and Gas
25

Corp.,

people generally.

June

Investment

of notification) 20,000 shares of common.
share. No underwriting. To provide financial

service to negro

(letter of notification) 6,000 shares (no

ing

additions. ;.

>v>.v *
Co. Inc.

Dec. 27 (letter

par) stock
and 2,000 shares ($25 par) stock. The 6,000 shares will
be issued to incorporators in consideration of i giving
company control of certain inventions and the 2,000
shares will be sold at par. No underwriting. For work¬

Jan. 2

Finance

comprise/its entire
Price—By competi¬
use its net pro¬
outstanding serial notes. The

balance will be

by amendment.

ington, D.C.

will be sold ,by

140,000 shares

Standard's shares

ceeds to prepay

Sept.

dian money).

Standard Gas &

will be sold by

holdings in Oklahoma Gas common.
tive bidding.
Proceeds—Oklahoma Avill

Undewriters—Mark Daniels & Co.
he

750,000 shares

Electric Co., parent and

;

■

June

Under¬

common.

competitive bidding..
Probable bidders will include The First Boston Corpj;
White, Weld & Co.; Lehman Brothers and Blyth & Co.,
Inc. (jointly); Harriman, Ripley & Co.; Kuhn, Loeb &
Co., and Smith, Barney & Co., (jointly).
Offering—Of
the total

Toronto

(

Electric Co.

;Dec. 23 filed 890,000 shares ($20 par)
writers—To; be
determined by

postponed.

;'/ ;'

shares of common stock (par $1).
Underwriter—Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬
ferred stock at $109 a share plus dividends. Indefinitely

National Aluminate Corp.,

toJ selling

ceeds

Oklahoma Gas and

Murphy (G. C.) Co.,

The pro¬

$197,000 for other corporate purposes.
from the other 3,000 shares will' go
stockholders. Offering temporarily postponed.
ance

;

4, but the

:!;•••; >i\'.*• \*■'»V
'

notification) 150,000 shares of (100
par) common arid 57,000 shares ($5 par) 6% cumulative
convertible preferred, Series A. Price—10 cents a com¬
mon
share and $5 a preferred share.
Underwriter—
Gearhart & Co., Inc., New York. Proceeds—To replace
working capital used to promote new publication called
Fashion Trades and
to provide additional working

indefinite.

June 13 filed 250,000

26 (letter of

capital. Offering date

of the stock on Sept.

sale has been temporarily
:

Inc., New York

Leader Enterprises,

Sept.

York ,' : / .
stock,:
Gearhart
pro-^
ceeds to the
from 62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred stock; $41,649 to
purchase 100% of the stock of two affiliates, and bal-

Nugent's National Stores, Inc., New
21 filed 85,000 shares ($1 par) common
Underwriters—Newburger & Hano, and Kobbe,
& Co., Inc.
Price, $6.75 a share. Proceeds—Net

June

Ripley & Co.; The First Boston Corp. Offering—Shares,
are owned by Standard Gas & Electric Co. and con¬
stitute 56.39% of the company's outstanding common.
Sale Postponed—Standard Gas & Electric Co. asked for

underwriting. Proceeds go to

7//:

selling stockholder.

9, 1947

140,614 shares of common stock (no par).
Underwriters—To be determined by competitive bidding.;
Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb
& Co. and Smith Barney & Co. (jointly); Harriman,

June 6 filed

'■*"

Min.

Owatonna,

Mountain States Power Co.

;

Thursday, January

FINANCIAL CHRONICLE

THE COMMERCIAL &

esti-

about
and deused

of
Working capital.,

$1). Under

t<
other equipment

convertible

Under' i

convertible preferre.

companl

pricl

Proceed!
af

;

Montreal, Can.
Stamford, Com
Undei,
in/ ei
Taylor R<
commc
of la
; ■■

Volume 165

.Number 4558

THE COMMERCIAL &
FINANCIAL
5 to the extent of
not
•

CHRONICLE
181

Sept. 30. At a meeting of
stockholders, Dec. 23 company
authorized an increase in common stock
from; 1,000,000
to 2,000,000 shares and also
authorized the issuance of the
present offering in exchange for
.the Taylor stock. Ap¬
proximately 70.9% of the common stock is-held under
a voting trust
agreement of Aug,ftl 5, 1945, which it is>;
expected will be terminated upon the
acquisition of the; ft
Taylor

be underwritten.

///

;

"ft

'■

•

•*

•

offered publicly at 100.
The offering
price of the 25-year
debentures, which will be due
1972, will be supplied by
amendment.
Proceeds—Proceeds will be utilized for re¬
tirement of
outstanding serial and term ' debentures
yamounting to
^18,750.000, with the bala^e to be used

•/'?,; V-ft'!K

Ritepoint Co., St. Louis, Mo.

Jan. 2 (letter of
mon.

•

share for each five held.
Issue will

one

Price—$7

notification) 42,500 shares ($1 par)
share.

Co., St. Louis.

com-

Underwriter—Dempsey-Tegeler <;

;for plant rehabilitation,
modernization

For additional
working capital.

International Co. Ltd., Buenos
Aires,
Argentine
!

Dec. 6 filed
deposit certificates for
500,000 shares, par
a share.
Underwriters—
Offering—The shares will be
ottered for

—

value 15 Argentine
gold pesos
None.'

■.

—

•

Cambridge, Mass.

ferred

stock.

right to

pre¬

Underwriters—Stock will be sold out&, Co., Inc., Butcher &
Sherrerd, and

Glover &
MacGregor, Inc. who will sell
customers at market but at not
exceeding

Proceeds—Will be

used for

working capital..

Santa Cruz

" -;

Pig'n Whistle Corp., San Francisco

(Calif.)

Sky Park Airport, Inc.
(letter of notification)
53,000 shares ($1

Der 6

Pro¬
ceeds—Proceeds will be used to
reduce
outstanding bank
loans, to finance additional
investments in

their

per

same

$102

through brokers or dealers at a publicly or privately
net price,; after cus¬
tomary brokerage
commissions, of not less than the
offering price to stockholders. Price
by amendment.

Dec. 27 (letter of
notification) 8,000 shares ($25 par)
6% cumulative preferred.
Price, $25 a share. No under¬
writing. To increase working
capital.

Stroud

sub-

scription to

stockholders of record Jan. 16 at
rate of one
share for each three
shares held. Price
by amendment.
Unsubscribed shares will be
sold

(

Philadelphia Dairy Products Co., Inc. /ft;;
Dec. 26 (letter of
notification) 2,907 shares of first

and expansion.

Swift

Pharis Tire & Rubber
;/'• Ross (James E.), Denver, Colo. ft'ftft^.ftftftft
Co., Newark, O.'
ftft-Yftft/ftft Dec. 31 (letter,of
Sept. 27 filed 100,000 shares ($20
notification) 500 Jim Ross Grubstake
par) cumulative con¬
units. Price
vertible preferred.
$20 a: unit. No
Underwriter—Van Alstyne, Noel &
underwriting. For gold
Co. and G. L. Ohrstrom &
/prospecting mining property. Business
Co., New York. Price—$20 aft
Exploration,
/ development and/ operation of
share. Proceeds—For
payment of loans and to
mining properties in
replace, / Dominion of Canada.
1
" ,T * v
working capital expended in purchase of
f
£
'
building from :
RFC and to complete construction
•
of a building.
Sanborn Co.,
1
ft
x

and

;

to provide

plant facilities
additional working
capital.
.

par)
Of the total
31,000 shares will be offered
pub¬
licly at $1 a share, 16,000 shares will
be transferred to
Alex.' Wilson and
Wayne Voigts for their interest in

common.

Taylor-Graves, Inc., Saybrook,

Conn.
/ July 12 (letter of
notification) 44,300 shares of ($5
p«nj
cumulative convertible
preferred stock and 44.300
share®
common stock
(par 50c). Offering—Price $6 a
share for
preferred and 75 cents a share
for common
Underwriter
—Amos Treat & Co.
Proceeds—For payment of
notes,
/ mortgages and for general

/ Santa Cruz

Flying Service, which is a
Dec. 26 filed 50,000 shares
flying field and
(par $7.50) cumulative con¬
airport, and 6,000 shares would be issued
vertible prior preferred
in cancellation
$2 dividend stock. Underwriter ',:of
partnership indebtedness.;? No
—G. Brashears &
underwriting, ft For
Co., Los Angeles.
Price by amend¬
operation of airport business.
ment.
\
<-v ; • Proceeds—23,481 shares are being issued by com¬
•
pany and proceeds will be used in connection with
recent
Searchlight (Nev.) Consol. Mining &
purchase of four Chi Chi
Milling Co.
restaurants
and
Jan 2 (letter of
cocktail
notification) 2,500,000 shares (100
lounges in Long Beach, Riverside, Palm
par)
common. Price—10 cents
Springs and San
a share. No
Diego and for working capital.
underwriting. For
mine operation and
purchase of mill.
*

corporate purposes.

temporarily postponed.,,

Offering

Tele-Tone Radio
Corp., New York
^

Aug. 1 filed 210,000 shares

common

^tock
(par 50
; cents).
Plastic Molded
Arts, Inc., New York
Underwriters—Hirsch & Co.
Slick Airways, Inc., San
Offering—Com¬
pany is offering 75,000 of the
Antonio, Texas
Aug. 27 filed 60,000 shares of preferred stock
shares registered.
Dec. 9 filed 500,000 shares
($10 par)
Eleven
stockholders are selling
($10 par) common and
end 75,000 shares of
135.000 issued and
common (par: 50c). ft Underwrite*—
options
to purchase.
175,813 shares of common.
outstanding
shares, for their own account.
Herrick, Waddell & Co., Inc. :
Underwriting—
None.
Offering—Price $6.75 t
Offering—Company;
:
Offering—The common shares are to
H share.
be offered
offering the preferred stock to the
Options—Selling stockholders are also
public, while the
publicly. The options for purchase of the
the underwriters
selling to
common is
at 7 cents
175,813 shares
being sold i?y certain stockholders. Prices—
per option warrant
of common are to be
options to
offered to original
purchase 18,000 shares of
subscribers of
Preferred, $10 a share; common, $4 a share.' Proceeds- ft the
the issued and
company's stock.
It also will issue
outstanding
common owned
Proceeds from sale of preferred will
options to emby them. / They are also
be used to purchase | ployees for
purchase of 69,875 shares of
selling to Hallgarten & Co., for
common. Price—
equipment, pay bank loans, and other
$1,500, plus

$10

corporate purposes.

•

Potomac

(Broadcasting Cooperative Inc.;

ington, D. C.Jan. 2 (letter of
notification) 7,000 shares ($10 par)
ferred.

share.

.for

Proceeds—For purchase of
equipment and

working capital.

Wash*

»
.

Solar

June

pre¬

;

toward the expenses of

additional

18,000

| common.

Manufacturing Corp.

filed

80,000 shares of $1.12%
Price—$10 a share. Underwriter—Rochdale Co¬
cumulative con¬
vertible preferred
stock, series A
operative, Inc., Washington, D. C. to finance erection
(par $20).
Underand
'! writers—Van Alstyne, Noel & Co. Price
Equipment of radio station and to
by amendment.
provide operating
Proceeds—Net proceeds will be
Capital.
applied for the redemp¬
tion of
:
outstanding series A convertible

$360

the

issued

contribution

issuance, options

purchase

and

outstanding

Proceeds—Net

proceeds for the sale of
com¬
pany's 75,000 shares will be
used for
increasing working
capital, with a view to
entering the Frequency Modula¬
tion and Television
fields at an
advantageous time. Of*
fering date

postponed.

,j.

..-i( '

•

Public

Industries, lnc.r New York
notification) 24,700 shares

Jan. 7 (letter of

§ which

(1/14)

ceeds

(par $1) and 10,000 shares - preferred
(par $10). No
underwriting. Price of common $1 per share and
pre¬
ferred $10 per share. Proceeds for
working
:
a
Y» hY:

^..

capital.v

V: v:'/

vv v ft

;

Montreal; director

will

used

into common stock.
for additional

Soss

and

Sept 3 filed 40,000 shares ($25
par) 5% cumulative

Underwriter—Ames,

■r

of common held
Queen City Fire Insurance
unsubscribed shares will be sold
Co., Sioux Falls, SftD.
to underwriters at
same
Dec. 23 (letter of
ft price. Price
Public
notification). 1,500 shares of $150 par
offering price of unsubscribed
shares by amendment.
Comjhon. Price—$150 a share. No
Proceeds—For expansion of
underwriters. Shares
plant
facilities and for additional
being offered for subscription to stockholders/
Any un¬
working

subscribed

Casualty Co. of
pany's stock.

St.

will

Paul,

purchased

owner

The

94.4%

postponed.

Anchor

of the

underwriting contract.: ProceedsDevelopment of mining properties and
exploration work.

fov* 20 filed 60,000 shares of
cpmmon .stock ($2,50:par)^
Offering Price—$10 a share.
Underwriter—Bankers
Jond Co., and Almstedt
Bros., both of Louisville, and;
'ruttenden & Co., Chicago. Of the total
of 60,000
shares,
ihe company is
selling 40,000 and seven stockholders are
lisposing of the remaining 20,000.i

Stone Container

ft?

V '•?*

■'ft.

Ariz.

12 filed

ky'sh

common

bscription to common stockholders of record on Jan.
0, 1947, in the ratio of % of a share of new
common
^each share owned and 1% shares of new preferred
each

common

held.

Unsubscribed shares
ill be offered
by the company to the public. Price—
0 a common share and
$10 a preferred share. Proceeds
The proceeds will be used
to augment capital
by an
ditional $300,000 and
surplus by an additional $800,000
r business
expansion purposes. ftjftftftft; /
•

Republic Pictures Corp., New York
igistration originally filed July 31 covered

ftft /ft..

184,821
tares of $1 cumulative convertible preferred ($10
par)
jd 277,231 shares (50c par) common stock, with
Sterling,
race & Co. as
underwriters.
Company has decided to
me 454,465 shares of
common stock
only, which will be
fered for subscription to
stockholders of record $ept

Corp.^ Daiias, Texas

(letter of notification)

Colo.

•ft\

30,000 shares

(no

par|

to be offered to,
stockholders at $5 a share in the
one share for each
three shares held,
ft

ratio of

Under^
writer—Federal Underwriters,
Inc., Dallas: and Trinity
Bond Investment
Corp., Fort Worth.
For additional
capital.
r

Under¬

;

•

Utah Chemical &
Carbon

Co., Salt Lake City

"Dec. 20 filed $700,000
15-year convertible debentures and
225,000 shares ($1 par) common.
The statement also
covers 105,000 shares of
common reserved for
conversion
of The debentures, ft

Underwriter—Carver & Co., vine.,
Price—By amendment.
Proceeds-^For plant
construction,; purchase of equipment and for
Boston.

arid 50,000

hares ($2 par) 50c cumulative
preferred. Underwriter—
f company finds it
necessary to enter an underwriting
greement, the name of the underwriter will be filed
by
mendment.
Offering—The shares will be -offered for

common

Offering — Of
selling 200,000 shares and stock¬
holders are
selling the remaining 100,000
shares. Price
; by amendment.
Proceeds—Of net
proceeds, company will
use
$1,225,000, plus a premium of
$12,250, together with
accrued interest, for
payment of a bank
loan, and $493,500, together with accrued
interest, for discharge of its
10-year 6% debentures.
Any balance will be added to
working capital.
v
'

(1/10)

20,000 shares ($10 par)

Dec.

Corp., Chicago

Hornblower & Weeks,
Chicago.

Republic Indemnity Co* of
America, Tucson,
ec.

ft Universal

the total,
company is

Proceeds—Company

•

underwriting. For
mining properties.

Oct. 24 filed
300,000 shares of ($1 par)
common.
writer—

use its
proceeds, together with $500,000 bank
loan,
to finance paints and varnish
plant now under construc¬
tor ft;'ft.ft- '•

Sa3idaf

share. No
acquisition and, exploration of certain
a

Reliance; Varnish Co., Louisville, Ky.

'•:*,v

Inc.,

p^r)"^cumula«^

Nov. 20 filed
800,000 shares of common* stock ($1
par).
a share to
public.
Company has
not entered into
any

Offering Price—$0.60

v^
ft/ft■ '/ft-

Fluorspar,

SJan.

Realmont Red Lake Gold
Mines, Ltd., Toronto,

ft:«;«[■?.-*»/•i-

Offering

•

;y:;:y.;'vx Canadaft

•

States

(letter of notification)
250,000 shares ($1 par)
class AA common;
Price, 25 cents a share; Noe under¬
writing. To; pay debts and
To* operation of jpill (ftncj .ore

§,

United

Jan.

/ mining/'fti-'/ftv;:
Southern Advance
r.7' :./r'^.ft'
Bag & Paper Co., Inc., Boston
3
U. S. Television
detter- of notification)|4,300
shares ($1
Manufacturing Corp., New York
common. Price,
$23 a share. Underwriter—E.
Par)^NoV;4 ine6 30o,ooo shares^"(no
H. Rollins
and-Sons Inc., New York.
^
vertible preferred and
Shares are being sold on be150,000 shares of common
half of trustees under.
(par
will of Agnes M.
$1) to be offered for special
Lindsay.
purposes. UnderwritersNames by amendment/Price
•
$5 per share for preferred.
Star lite
Mining Co., Reno, Nev.
Proceeds—For working capital and
expansion of busi-i
Jan. 3 (letter;, of
ness.
1
notification) 150,000 shares (500
par)
ft
common. Price—50
cents

com¬

For additional
working capital.

i£l

" \

necessary, the $5,000,000 to be
contributed by its
parent, Cities Service Co., will be
used
outstanding debt and preferred
stock, involv¬
ing a payment of
$53,906,590, exclusive of interest and
dividends.
•

—

capital.

$32,000,000 first mortgage
bonds, due 1976,
($10.0

160,000 shares of

to redeem

preferred share for each five
shares

bidding. Proceeds—Net proceeds
together with $4,4
500,000 bank loan and if

con-

Emerich &

par) cumulative preferred.
be determined
by competitive bidding.
Probable bidders include The
First Boston
Corp.: Halsey,
Stuart & Co. Inc.
(bonds only);
Blyth & Co., Inc.; and
Smith, Barney & Co. Price to be
determined by competi*
tive

Co.,
Tnc., Chicago. Offering—To be offered
to common stock¬
holders for subscription at
$25 a share in the ratio of
one

Price—500 a share.
Proceeds—For explora¬
development of mining property.

Edison Co.'

Underwriters—To

Manufacturing Co., Detroit, Mich.

vertible preferred.

(O.)

Oct. 25 filed

Such pro¬

ft* ?

Quebec Gold Rocks Exploration
Ltd., Montreal
Nov.'"13 filed 100,000 shares
(5001 par) capital stock.
Underwriter—Robert Br Soden, company.;
tion and

are not converted

also

manufacturing
facilities in the amount of
$600,000; for additionaTinventory amounting to $400,000 and for
additional working
capital. Offering
temporarily postponed.
:
:
'
;

stock

common

Toledo

;

preferred stock

Street & Smith
?;

Publications, Inc.

July 17 filed 197,500 shares of
common; stock,
writers—Glore, Forgan & Co. ft Offering—The

represents

part of the

holdings of

holders. Indefinitely
postponed.

the

;

/ft

| Y;v

present stock-

Swern & Co.,
Trenton, N. J.
Aug. 28 filed 195,000 shares

ft ceeds—For

common

sold

/initially.
ft'.ft

applied

Offering date indefinite.•
ft'•

ft-

Swift & Co.,
Chicago
Dec. 23 filed

$15,000,000

to
-

ft-'y

(l/15)ft.

working
ftt
' i'ft

ft
ift"'1

/;ft

$50,000,000 of.

•*

Underwriters—Salomon

($1 par) capital stock. /Un¬

Price—25 cents

share.

Watles-Bageman,

Dec.

lnc., Vernon, Calif.
(letter of notification) 2,475 shares

preferred
preferred

and

20,046

and

common.

common

writing. For payment of obligations.

rr';

-ftft''

West Coast

(ft: ft'ft: " Vft

yet.

Pro-

•

par)
$10 a

ft-

under¬

y ft:

Hutzler,
Price—Serial debentures, which
will be due
•; $1,500,000 each
ft Jan./ 1, 1948 to 1957 inclusive, will be

D. C.
ment

—

($1 par)

Auchincloss, Parker

Price—$7

Airlines, Inc., Seattle, Wash.*

Sept. 2 filed 245,000 shares
writer

•'. >

($10

Price,

share.
-

111

25-year

Bros.

•

capital

of 1-10 year serials debentures,^consisting
and $35,000,000 of

debentures, ft

New York.

developing

stock

K. Pistell &
Co., Inc.

company .will

Canada

mining ft property.
Business—
ft Acquiring and
developing mining properties. ;. ft

(par $1).
Offering—Com¬
45,000 shares, and
eight selling stock¬
holders are
disposing of the remaining 150,000 shares.
Price—$10.50 a share.
Proceeds—From 45,000 shares
is selling

'/ft/ft;

Nov. 13 filed 400,000 shares

derwriter—None
'

pany

ftftftftftft;';

Victory Gold Mines Ltd., Montreal,

offering

;

Underwriter—C.

Under-

rr"

working ft

capital,

common.

Under-

Redpa+h, Washington,

share. Proceeds—Will be
used for pay¬

various
expenses, repayment of bank
purchase of equipment and for
working eapitaL
•ft ft ft
; r;
■ ;
(Continued :6n page 182)
ft ft f ft

loans,
—r»
,,

commercial St financial

the

chronicle ;

1947

Thursday, January 9,

182

(Continued from page

\ V.;: •/-. v/-

|nc.

Lines,

Air

Western

1,200,000 shares ($1 par) capital stock.
Underwriter—Dillon, Read & Co. Inc. Price by amend¬
filed

Nov.

Proceeds-r-Offering consists of an unspecified
number of shares being sold by the company and by

ment.

Coulter, President

William A.

being offered by each will be
ment and the total number

and Director. The amounts
stated definitely by amend¬

of shares

presently" stated

if the offering consists of a smaller num¬
ber of shares. Company will use its proceeds
at a minimum of $6,500,000 together with a
bank loan, toward payment of its promissory notes and

will be reduced

estimated
$7,500,000

program

White's Auto

banks and from White's Em¬
Trust, and for additional working
Offering date indefinite.

capital.
rp,\S"

i' .*•

T-

v•

•

sold

cumulative convertible
50,000 shares common

Wis.

super

and Harriman

Forgan & Co.,

to remodel its
working:- capital.«r / e 4 /

three new cafeterias,

markets and to increase

Wash.

lnc., Bremerton,

Zerp Frozen Foods Co.,

(letter of notification) 1,940 shares of 5% cumula¬
tive preferred and 200 shares of common/ Price—$100 a

preferred share and $250 a common

Weld & Co.; Glore,

Beane; White,

/v<"

Dec. 19

include Merrill Lynch,

Probable bidders

Wyatt Fruit Stores, Dallas, Texas

used in part to equip

%'+".<•')' vj\

\ tvvv-

'-vm";

(par $100) -preferred stock.
Underwriter—Rauscher, Pierce & Co. Proceeds—Will be

competitive

Fenner &

Pierce,

vV/v.'Viv

Light Co., Madison,

vv v.v." .v.>

,-t.

NoV. 12 filed 5,000 shares

shares ($10 par) cpmmon stock tc
bidding. ; Underwriters—Bj

May 21 filed 550,000
amendment.

75,000 shares $1
preferred stock ($20 par) and

.»it:/

Wisconsin Power &

ployees Profit Sharing

Stores, Inc.

29 filed

Aug.

/v,•?>/'.' l '■>

sidiary, retire loans from

Utilities Col^

of' North West

dissolution

Wiscopsip

distributed to them' upph th#

which will be

common

sale of the preferred stock
provide funds for a wholly-owned sub¬

Proceeds—Proceeds from the
will be used to

elect to sell such shares of

of Wisconsin, who

Price by amendment

dividuals for their own

and facilities expansion

company's equipment
now under way.

to finance

outstanding and
account.

Of common are

Part of the shares are to be sold by Middle West Corp.,
top holding company of the System, and part by pref¬
erence stockholders of North West Utilities Co., parent

Childs, Jeffries & Thorndike, Inc.
is offering 75,000 shares of preferred;

Proceeds—

and Dillon, Read & Co.

The Wisconsin Co.,

and
Offering—Company
the 50,000 sharei
being sold by four in¬

Underwriters—First Colony Corp.

(par $1).

stock

181)

share. No under¬

in business.'

For reinvestment

writing.

Ripley & Co. (jointly);

V;;

.; ^

Offerings

Prospective Security

REGISTRATION)
ADDITIONS SINCE PREVIOUS

(NOT YET IN

INDICATES

•

(Only ^prospectiyes"
given herewith. Items

Teported during the past week Are
previously noted are not repeated)

be received

Bids will

& Texas Pacific Ry.

New Orleans

Cincinnati,
(1/23)

70 Pine St., New

office room 20)8,
EST Jan. 23 for the

at company's

York up to 3 p.m.

and 5s of 1962.
\

$1,700,000 equipment trust certificates Series K.
Dated Feb. 15, 1947 certificates will mature in 10 equal
annual installments 1948-1957. Dividend rate is to be

States

state,
.*!*' .r'Vr

<].'•

/ -5»-' '•*

v-'

o.r*

•.

»..-{*.v».

•

'
„

..
.

v/:

'-- ' v'.'v"

boston

•

pittsburgh ?

chicago

Foster &
4

•

st. louis • san

cleveland

francisco

plans to seek

Hartford Gas Co.

:'-'v '

may

Kidder & Co, Agree to Presence

$2,000,600
plqnt ex^ansioiiV |ssue

finance

issue

reduction in fris weekly pjiy
increase in the numjapr

/ or any

weekday;

closings."

...

Seaboard

the asking for bids for
trust certificates. V
V ^

authorized

judge

manifold

the view that

position to
what the market will take

in a better

are

than are the

officials of companies

seeking to sell an
dications

And in¬
likely,

issue.

that,

are

portal-to-portal ,pay. ; 1; "i f/ :
In effect these interests ^eel
that the portal pay suits have
tended to upset the entire econ- '
omy, perhaps only temporarily, <
but to

very;

such

will be more

Ten Days

bond

Hence

market and banking

the consensus seemed ^ to
be that there was ,little chance
of: Birmingham Electric Co. get¬

nego^
V Investment bankers evidently
ting any. bids for its issue unless
contract which it has imum supper allowances for those have come to the conclusion that
there is a revision' in the - restric¬
who work overtime and increased
lodged with the U. S. Mediation
there is little satisfaction in un¬
tions as they now stand.
Board against A/ M. Kidder & vacations with pay.
dertaking a piece of business that
Bankers who looked over the
Co. on the understanding that a V The union has also revealed that will not produce a satisfactory
deal calculated that if they took;
conciliator acceptable to both the strike votes have been taken or return for the task.
the issue as a 4.20% dividend
union and the firm be present at are under way among the 1,200
At any rate there was grow¬
payer they would have to mar¬
all negotiation conferences in the employees in the 10 offices of the
ing evidence this week, a quiet
ket it on approximately a 4.10%
Title' Guarantee & Trust Co. in
| future.
period in other respects, that
basis or at a price of 10214. This, /
New York, Mineola, White Plains
It was Merlyn S. Pritzele, labor
underwriters are in no mood to
they maintained^ would offer?
and Riverhead, L. I. Here also, the
news editor of "Business Week,"
rush in and bid for an issue
too slim a margin considering
union claims the firm is refusing
where the terms, arbitrarily set
acting in the capacity of tempo¬
the overall situation "
to grant adequate salary increases
rary conciliator in the case, who
by the prospective issuer, do not
Feeling was that the stock should
or to meet other union demands.
last Friday arranged the compro¬
offer the prospect for a profit.
have been accorded a dividend
Threat of a strike against the
mise between the union and the
This was the long and the short
rate of 4.50% or thereabouts to
firm on the points of the dispute. Trust Company of New Jersey at
of the situation
which brought assure its successful distribution.
Both the union and A. M. Kidder Jersey City by this same union about a ten-day delay in "opening
It will be worth watching to see
& Co. are now understood to be on Sunday resulted in the signing
of bids" on Birmingham Electric what happens a week hence.
preparing panels of persons from of a contract at 5:30 a.m. on Mon¬
Co.'s 45,478 shares of 4.20% pre¬
which the conciliator is to be se¬ day, three hours before the strike
^
portal Fay and Market •
lected.
Points covered
in the was scheduled to commence. The ferred stock. •.
I
Thus far in th^ New Year there
union's original complaint against contract granted wage increases
r
It was another of those under-, has been Tittle sign of revival of
the firm include wages, union se¬ of $7.50 a week, a 39-hour work
underwriting activity/ The .rieyy
takings in which the company
curity and grievance machinery. week and full pay on bank holi¬
issue market is stagnant with lit¬
proceeded to lay down rather^
days.
"* V
The Financial Employees Guild;
tle sign of an early break' in the
stringent restrictions, fixing tjie
In behalf of bank workers who
CIO, announced Tuesday that it
log-jam. •
v;.,'
\
would recommend strike action at are members of the union, the
dividend
rate ; already
men¬
It is only natural for those who
UOPWA is sponsoring a bill at
a
meeting of the employees of
tioned and informing bankers
make ; a business of distributing
^

•

providing that all banks in
Street called for early last eve¬ New York shall be closed on Sat¬
ning. The union claims the firm urday. The bill, whiph the union
has refused to agree to salary in¬ says 'will be introduced shortly,
would make
Saturday closings
creases, a 35-hour, week,- a_ job
classification system, equal pay mandatory and would providg that
*W employee . / * shall receive
for equal work,, establish'min¬

Albapy

that

less than par,
fie considered.

would

bid

"Well the upshot: of
was

that

four: banking

had been formed tp seek
stock they all withdrew- torn..

groups
the-

while

the matter

new

securities to look

around for

There is. little

the

current

disppsition'.,to Is¬

securities under such circum¬

and naturally a lot
disposition to' buy them if
should develop.. • - - :
■

stances,

District'Bonds

Power

week

less
they
•.

; •

irom ' next Tuesday^

the Omaha Public Power
District board will open bids for

Jan. 21,

$42,000,000 of electric revenue
bonds, dated 1947/ " This should
prove the : real kick-off ; fpr thq
new

issue market,

gf '| " I

{

J; These bonds are to be issued ]
to fund bank loans incurred -by
the
authority -to- finance -the ?
purchase of ; utility properties
acquired early last month from !
the

Omaha Electric

Inc., including

Committee,

Nebraska

Power2

privately owned;
statej';;'^'/:
-The issue will consist of $28,-'
000,000 of serial bonds, due 195(
tp 1967 inclusive .Sincf $20,000 I'ir
term bonds, maturing in 19771 jO,
the serials $950,000 would f^ll du/
in 1950 with the annual maturity
increasing ^ about. $50,000 there?
Co.,

last .big

utility in the

„

-f-'

after.'.;,;V
Two with J. H.
.
.

•

explanation
dullness;; ;
an,

such actions be

companies would, be more than'
they could stand, it is observed.

sue

circles

disturbing degree none- <

upheld in any great number ?
the obligation placed on many {

stringent manner.

the-less. Should

veering away
fromV new prospective i ssues
where, the vendor seeks to stipu^
late the terms of the bidding in
there

of labor leaders and their
court actions-seeking»

i havior

Bankers lean to

bad faith in the

Broad

Air'Line RR.

8 -directors

tiating of a

of 30

\ ,m

inc)u<ic(IlalseYi: Stuarii 8? Co.
Hutzler.."
k
VV

bidders

Salomon,Bros. &

^3,000,000 eqnipn^ent

•<

they

by^^reason^ of swh

Stern

;
probably will be in market
large offering of equipment trust cer-

competition before bids were

dup.

heretofore worked on any

of hours

urday

the

conciliator in case for U./S. Mediation
Board, arranges compromise in dispute between AFL union and
firm arising out of union's charge firm was negotiating contract in
bad faith. The Financial Employees Guild, CIO, taking strike vote
i among employees of Title Guarantee & Trust Co. Union sponsoring
bill at Albany which would make Saturday bank closing mandatory
but without reduction in pay for employees.
The United Financial Employees, an AFL union, seeking to
organize Wall Street's brokerage firms, has agreed not to press

"'v:'1:

Savoy Plaza,

Jan.

privately.

Merlyn
in capacity of temporary

Herzfeld

•

company

'♦

open-end mQrigage ahd .to

be placed

Negotiations for Contract
S. Pritzele, labor news editor of "Business Week/' acting

charges of

Inc., New York
The Sheraton Corp. of America will offer at public auc«j*
tion on Jan. 20, a block of 1,944 shares of class A com¬
mon stock arid 27,350 shares- of Class B." stock of Savoy
Plaza, Inc. The court order permitting the sale has set
an upset price ;pf $507,708 for the stock. An pearlier oourt
order, applying to a sale planned.for Sept, 20, had-set
a minimum price of $667,803.
\
: \
^' v

written consents from

first-mortgage bonds to

| of Conciliator at
V

'v-

•

preferred stockholders authorizing creation of
not ^xceebW $1,250,000 funded deht> to be used for ex¬
pansion and working capital.

any

UFE and A. M.

Inc. and

Kleister Co.

company

to create an

•

riqclthpiders

NEW YORK
• v'::•**
-v v; v''

•*' .buffalo '

philadelphia

6- CO

shortly with a
.tificates. P^ohable

Class A
MS-

INC.

Jan.

Securities

BLAIR

Municipal and

Corporate

«s.

7 reported

Jan.

specified in the bids. Probable bidders include
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
'' v '•
i1 '
• • t<.
'< ,h. s kj/u * ' ' «•'1 ,j v '
' ' v ?
- >
-*v 'y
v rffi/i
\ & re

Government,

* ^;

Pennsylvania RR.'

•

sale of

Halsey,,

United

will open bids: on a $5,000,000 loan to
be secured by pledge of the road's prior lien mortgage
4% bonds of 1986. Proceeds will be used to acquire Mis¬
souri, Kansas & Texas Ry. first 4s of 1990, and MissouriKansas-Texas RR, prior lien 4s of 1962, 4l/z s of. 1078,

Jan. 14" company

-;v. iv;/.v';'v

•

RR.

Missouri-Kansas.Texas

Halsey,

the bids. Probable bid.ders include
Stuart & Co. Inc.; Salomon Bros. & Hufzler.
in

cified

(1/23) '
Bids will be received at company's office Room 2018,
70 Pine St., New York, up to 3 p.m. EST Jan 23 for the
sale of $1,907,000 equipment, trust certificates series J.
Dated Feb. 15, 1947 certificates will mature in 10 equal
annual installments 1948-1957/ Dividend rate, to be speSouthern RR.

Alabama Great

•

ISSUE

Goddartjl (Co

(Speci&l to The fr^ft^qial

BOSTON,

phftoftiptp)

MASS^lem^jt

McCormack" and Alden

.V|.
I

)Yel{

have* joined thef" s)rtf| of J.
a^ the mpment belief is
held in many quarters that the
Poddard ; &, Co., 85 p.oyopshif
current state of affairs can beStreeL/^f.'1;/
V;i''J
charged to the "high-handed he- -

And

Volume

165

Number 4558

THE COMMERCIAL A
FINANCIAL CHRONICLE

Reserve Board Govs.

Oscar T. Crosby Dies
:

Terry Crosby, one-time
Assistant Secretary of the Treas¬
ury, died at the age of 85 at Warrenton, Va., on Jan. 2/ according
to Associated
Press advices,
A

Reappoint Dearmonf
The Board of Governors
of the
Reserve System has re¬
appointed Russell L.
Dearmont, St.

Federal

former executive of electrical
and

Louis, as a Class C director and
redesignated him Chairman of the

public

Louis.

under

and in 1917 had

charge of loans to

Allied

powers,

sistant

Douglas W. Brooks, of

Memphis, Tenn., has been redesig¬
nated Deputy
Chairman, the St.

Secretary.

Louis Reserve Bank
announced on
The announcement further

lecturer

Jan. 2.

eral

said:

low

'v#

the

Federal Reserve Bank:

;Rock,

Chairman

author

and

and/, Emmet Morris,
the /Board, W?. B,
bankers, Little Rock,

the

sev¬

books, Mr. Crosby was a fel¬
of the
Royal Geographical
French

commander
of Honor

Legion

and had received both the
and Italian Orders of the

•>.

"Little Rock
Branch—Ralph E.
Plunkett, President, PlunkettJarrell Wholesale Grocer
Co., Lit¬
:

tle

Treasury As¬
Widely known

skkk Society of
London,

"The following have been
ap¬
pointed directors of the branches
of

utility companies, Mr.
directed
Belgian
relief
Herbert Hoover in 1915,

Crosby

Board and Federal Reserve
Agent
of the Federal
Reserve Bank of
St.

Oscar

was

member

politan

and

the

Cosmos

Washington

the

and

Club of New York.

Belgian
Crown.
Metro¬

Clubs

University
k

Worthen Co.,
Ark.
%

"Louisville "Branch

—

Dunne With Bogardus

o s c o

(Special to

Stone, farmer, Hickman, Ky., and
A.
C. Voris,
President, Citizens

National Bank,
Bedford; Ind.

■"Memphis, Branch

ald A.

Hugh M.
Brinkley, farmer, Hughes, Ark.,
and, W. W. Campbell, President,
—

National Bank of Eastern Arkan¬

Forrest City, Ark.V 1

sas,

:■

;

The Board of Directors of the
Federal Reserve Bank consists of
nine

The

Financial

LOS ANGELES,

-,,v

Dunne, formerly with Dean

Witter
with

Chronicle)

CALIF.—Ger¬

Co.,

associated

now

Bogardus, Frost & Banning,

618 South

Spring Street, members

of the New York and Los

Stock

Angeles

Exchanges. k ky^'7^.,

■

DIVIDEND NOTICES

members, six of whom are
the member banks ;and

chosen by

three by the Board of
Governors
in

Washington.

AMERICAN

Each branch has

CAN

seven

directors, four of whom are
appointed by the Federal Reserve
Bank and three by the
Board of

Governors.

Burgess

■

•

seventy-five

1S,» 1947,

Council From N. Y.
Reserve District k'

books will remain
r

Allan Sproul,. President of the
Federal Resbrvd Batik' of* New

a
quarterly dividend qf
share was declared on the

Company, payable Feb*

Stockholders

the close of business

DIVIDEND NOTICES

1946

cents per

Common Stock of this
/uary

Advisory

COMPANY

COMMON STOCK
On December
30,

record

R. A.

BURGER, Secretary.

LEE RUBBER & TIRE

York in advices
ber

banks

the

S CORPORATION |

Jan. 2 to mem-'
local

REPUBLIC RUBBER

Reserve

dolph Burgess, Vice-Chairman of
the National
City Bank of New

Yorkj New York^ N. Y.; to
during the year 1947 as the

INDUSTRIAL RUBBER
PRODUCTS

District stated that at a
meeting
on
that day the directors of the
Reserve Bank selected W. Ran¬

msm

Youngjtown, Ohio

IEE TIRE & RUBBERCO.of
N.Y.flnc.
1

TJUBES & SUNDRIES

■

NU-ENAMEL

fePttgl

VConshohpchcn.Ps.

CORPORATION

serve
mem¬

ber of the Federal Ad
visory Coun¬

cil from the Second (New
York)
Federal Reserve District.

The'Board of Directors has this
day
declared the regular
quarterly divi¬
dend of
5Qcper share on the
outstanding capital -stock of the

Moflee of Dividend

| COMMON

SITUATIONS WANTED

the close of business

1947. Books will

not

STOCK

The Board of Directors of
fhisj. Cor*
poratlon has declared

Corporation; payable February It,
1947# *to stockholders pf record

15c per share

payable

January 15,

holders

be closed.

March
of

record

business March

dividend of

the Common Stock,
15, .1947 to stock¬
at

the

1947. Checks will

be mailed.'

'k:v.k

'"/v

Nineteen

years

-Good

ence.

both.

Biox M-19,

commission,
d

a n

Coordinate

general

Com¬

ily
No.

and

assume

REDEMPTION NOTICE

re¬

TRADE

business

and

press

or group. Post Office Box

672,

Mamaroneek, New

York.

Segal Lock & Hardware Company, Inc.
NOTICE

OF
.

WE SEEK ADDITIONAL
This widely advertised
municipal bond house undergoing
a
program of expansion is
planning to add additional
customed

estates

well

Write
\

us
1

Would

prefer

salesmen

dealing
as

with large institutions and
experience in selling individuals.

essential details in strictest
confidence

L,'.phone for appointment,

Lebenthal# Co.
135

bond

BROADWAY, NEW YORK 6,N.Y.

REctor 2-1737

ODD LOT MUNICIPAL
BONDS

CONVERSION

-,J'

MUNICIPAL BOND SALESMEN

staff.

REDEMPTION OR

$2.50 Cumulative Preferred Slock

-Notice is hereby given that the Company has called its
$2.50 Cumulative
Preferred Stock For redemption on March
15, 1947 at $55 per share plus
accrued dividends in the amount of
41%c. In lieu of redemption, each
share of $2.50 Cumulative Preferred Stock
"may be converted into 4®
shares of Common Stock on or before that date.

HELP WANTED

its

m. norby, ;
Secretary-Treasurer.

Interests of individual, fam¬

Chronicle, 25 Park Place,

;,-v'::kk"

financial, legal, real estate,

New York 8,/N.Y.

salesmen

T'"m"

sponsibility Tor management
of

Financial

Lawyer, 42, ex-Lt. Col. will

following.

mercial

•;

experi¬

Salary

December 26,1946

BUSINESS-ESTATE MANAGER

Trader Available
"k'-k1.:-

A. S. POUCHOT

SECRETARY

Over The Counter

ac¬

trust

v-3

k NOTICE OF REDEMPTION OR EXCHANGE OF
^'k'kv :'r:X'""likr
Cumulative Preferred Stock
,kv
Notice is hereby

given that the .Company has

"Stock

called

for redemption on March 15, 1947 at
$55
dividends in the amount of $52.35. In lieu of

its 7% Preferred
share .plus accrued
redemption, holders of
per

7% Preferred Stock have the option to exchange each share on or
before
that date, for either, one share of the
$2.50 Cumulative Preferred Stock
plus 10 shares of Common Stock, or for 20 shares of Common Stock.

IMPORTANT

;

Proper notice of the above and instructions

to effect the same are
being
mailed to all registered holders of both classes of
preferred stock (which
constitute all the authorized and
outstanding preferred stock of the
Company) and copies thereof are obtainable from the
Company, 395

.Broadway, New York 13, N. Y. or United States
Corporation Company,
Transfer Agent, 160 .Broadway, New York
7, N. Y.
Dividends thereon and all
rights with respect to-both classes of pre¬
ferred stock shall forthwith after said
redemption date
ate, except only to receive amount of said

cease

and termin¬

redemption, without interest.

Dated:

January 2, 1947

LOUIS SEGAL, President

Checks will be mailed.

open.

January 23, 1947. Transfer

apd Treasurer

9, 1947

Thursday, January
THE

COMMERCIAL &

CHRONICLE

FINANCIAL

index

index of

For detailed

contents see page

123

Reorganization

Old

Rails

Domestic & Foreign

Securities
mm

New Issues

1919

ESTABLISHED

Members

PL, N.

Exchange

Teletype N. Y.

148 State St,
0421

Tel. CAP.
N.

1-1397

Boston 9, Mass.
Teletype BS 259

2-7914

Telephone HAnover

Astfn
Y. 5 HA. 2-8780

Security Dealers

Kerlte

Diamond

Alkali

;

Petrol,te Corp.

International Buttonhole
Boston Woven

Monolith
Conn.

Rubber

Hose &

pfd.

Portland M'west
Rwy.

Ltg. com.

Missisquoi Corp.

$1.60 pfd.

Teletype—NY 1-971
HAnover

2-0050

Trading

Firm

Ralph F. Carr & Co., Inc.

Markets

ff-31 Milk 9treotf Boston 9,
New York

Boston

Hubbard <442

GUBAN
Government

i Harl

mares & no.
FOREIGN

50 Broad

We Specialize

Street

iNailll

Insurance

.f:':

SECURITIES

SPECIALISTS

AFFILIATE: CARL

Mass.

Teletype

BS 321

2-7913

Railroad
.

Hanover

;

tf f New York 4,

Industrial Issues
Issues

Investment Trust

' 77'f7f 7 -f

MARKS & CO. Inc. CHICAGO;

■

in all ;

and Bank Stocks

N. Y.

Stocks and Bond*
TEXTILE SECURITIES
Securities With a New Eng. Mark
Public Utility

Frederick C. Adams & Co
-J ' Specialists in ^
.
; j
England Unlisted Secutittes
f
New

BOSTON 10

FEDERAL STREET,

vil

Established in 1922

Tel. HANcock

8715

Teletype

Bs'l

i—Insurance

Industrial — Real Estate

'"Seaboard Fruit Co.,ln<
'General Products

Cob

'"Susquehanna Mills
Shortage

Delhi Oil

Freight Car»

large volume

long-term

indicates

business

for

erred and Common

Stocks

;

Gerotor-May
U. S.

Sunshine

Consolidated

(freight car

high

Circular

about

8V2

RENIER,

Available

208 SOUTH

-■

-v."

LERNER &

•

'*!

New York
COrtlandt 7-0744

Broadway

Telephone
Bell Teletvoe NY

Inactive

00.

;

Securities

Office Square, Boston 9, Mass.
Telephone Hubbard 1990. * < Teletype Bs 69.
10 Post

request

manufacturers)

Market about
1946

120

*Pro*ptctu$ on

BOUGHT—SOLD-QUOTED

Radiator Pfd.

Empire Steel Corp. i

MITCHELL &

LA SALLE ST.,
7

WESTERN UNION

•

REITZEL, INC.

CHICAGO 4 • PHONE

'•

TELEPRINTER

•••»¥'.

RANDOLPH 3736
*.
f.v. f

"WUk1'" • BELL SYSTEM TELETYPE

CG.-9Q9

Hill, Thompson & Co., In
Markets end

Situations for

120 Broadway,
Tel. REctor 8-2020

Dealei

New York |
Tele. NY 1-26