The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Final
Edition
ESTABLISHED OVER 100 YEARS
In
2 Sections-Section
1
s.
brarI
'JUL IS 1943
ommetcialan
Beg. U.
Volume
158
Number 4194
i
"The Spirit Of
j
New York, N. Y.,
Enterprise"
be
can
made
the
t
e x
A
—
short
of
potential
accomplishments."
-
/
-
is
That
•
hope which
Edgar M.
Queeny,
the
of
directors >
M
o
C
h
Co
f
o
board
p a ny
the
Edgar
M.
in
book,
Spirit
leased
Queeny wrote the book
quest of Scribner's.
comments have
of
those who
we can
Mr!,
have
•
aging
n
s
e
S t
interest with
activities
necticut,
in
reference
the
Michigan
in this
appear
me
Wright.
seems
to
that unless
postwar prob¬
lems
Con¬
well
are
thought
out
and
planned
Missouri
and
the
Inflatio n,"
written by Dr.
of
issue.
and
Through
dealer
of
Busi-
holders
.
^
found
tive.
I
Missouri
Michigan,
on
see
tire
a
most
tive
'vv
For index
to
/
flation
are
ate
the
after
QUICK ACTION ON DESIGN
be
Dr.
This
war.
*
very
serious
and unfortun¬
224.
page
that there
situations
warning by
also
f
debt; to keep
a
liquid cash
position
to
:Vv'; D. W. Fraser
un-
"
'
speculation in inventories.
(Continued on page 208)
Bay
MANHATTAN
WAR BONDS
R. H. Johnson & Co.
52 WILLIAM STREET
NEW YORK
,'r
San Francisco
Established
INVESTMENT
64 Wall
BOSTON
1927
SECURITIES
L;'V-
Street, New York 5
Wholesale
HUGH
ON
REQUEST
w/lONG and company
t-—INCORPORATED
-
Syracuse
Dallas
15 EXCHANGE PL.
:
;
in
Over 'The - Counter
-,C;:
Members New York Stock Exchange
and other Exchanges
JERSEY CITY
LOS ANGELES
Broad
Members
St.
2-OGOO
Teletype NY 1-210
124 So.
N.
Y.
Security
Dealers
Ass'n
tures
of
Hon.
J.
L.
Ilsley
3, ILL.
45 Nassau Street
LaSalle St.
New York 5;
'
State
8770
Teletype CG 121!)
plans
and
proposed "
their
in
experts
general
sum-
observa-
"B
a
I
ele¬
Canadian
up
„
ac¬
tion
cer¬
new
currency
stab i'liz
American
them
Morgen-
thau
both
-
a n
as
monetary
involves
.
'the
organization
extension
of
rehabili¬
tating
the
fir,
and
economic
strength
of other
Rep. Chas. S. Dewey
tries after the
machinery will deal
only one of, the .numerous
problems which must be faced, but
.
method
a
f
nancial
inter¬
of
Coo peration:
a World RFC,"
o
an
k
ternational
n
coun¬
and maintain¬
war
ing equilibrium of their interna>
£ (Continued
page 219)
on
it is
ing
a
logical and convenient start¬
for joint international
place
action.
THE
,
(c) The credit made available
(Continued on page 210)
CHASE
NATIONAL
BANK
Bond
Brokerage
Service
Broaden your customer
V;, for Banks, Brokers
and Dealers
correspondent
J
facilities
Hardy&Co.
York Stock Exchange
Members New
York Curb Exchange
30 Broad St.
New York 4
tele. NY
Jfember Federal Deposit Insurance
;
,
Corporation
;
1-733
Tel.
REctor 2-3600
Philadelphia
Teletype N. Y. 1-576
Telephone:
Puget Sound
Power &
Analysis
Enterprise 6015
Light Co.
upon
request
HART SMITH & CO.
Members
New
York
Stock
Exchange
.120 Broadway, New York 5,
N. Y
^ Telephone: REctor 2-7400
^VBell
Teletype
NY- 1-635
^
Keynes
and
at e,/fea¬
p or
REYNOLDS & CO.
INCORPORATED
25
mem¬
:
criticized
the
im- '
5% PREFERRED
Kobbe, Gearhart & Co.
Rep.
CHICAGO
a
Ways
Means
tee,
incor¬
porate
Bought—Sold—Quoted
Hirsch, Lilienthal & Co.
HAnover
"they}
Stokely Bros. & Co.
manifold grades of
Securities
4, N.Y.
the
Actual Trading Markets, always
Dealers
Geneva
caption,
(Rep., Ill:),
in
bearing
Charles
the
and
Members New
634 SO. SPRING ST.
Underwriters |
•
24,
Rep.
Commit¬
state:
Tel. DIgby 4-8400
■
of
House
character;"
Distributors
PHILADELPHIA
'
Albany
Buffalo
Pittsburgh
Williamsport
Troy
Distributors
Dewey
June
service with Chase
PROSPECTUS
ENGINEERS and CONSTRUCTORS
NEW YORK
tentative
BON® FUND
Sanderson & Porter
-
ber
published
of
OF THE CITY OF NEW YORK
FINANCING and VALUATIONS
London
S.
REPORTS
In connection with
L
"pro visional
and
(b); Such
MANAGEMENT PROBLEMS
Chicago
are
above
with
and
avoid
"Chronicle"
the
cooperation in the post-war world
is to be achieved., ;
of
r e e
article
an
credit is essential" if international
to
.
SURVEYS AND
state,
which
in¬
necessary
Wright is timely.
AND CONSTRUCTION
'
be
In
latter's
national
the
of
i
World RFC
e
for the establishment of
attempted
avoid
effects
/—*
ex¬
tions, suggest that
(a) An international agreement
be
can
now
many
William L. De Bos1
see
perts
ming
protec¬
from
will
!
v
i t h
plans,"
The
the
);
Cooperation: A
ments."
ad¬
:
American
Canadian
in
,
Bank Of International
British and
tain
measures
that
be
pre-<$>—1
of Commons
on
"Likeithe
the
general character and to
a
^
July 12 by J. L. Ilsley, Canadian Minister of Finance.
to
ment with Dr.
Wright's
that
was
plans/and add
g re e-
vice
Plan
to the House
at Ottawa
observations of
alternative plan."
and British
en¬
on,:
206;;
Connecticut
page
207;
page
208.
sented
the
;
in
am
for
For
it
most informa¬
Vicissitudes of
It
to
States
an
Canadian
the experts
;
for
a
s
ckholders
o
Ivan
items
The
further
Company
I have read Dr.
Wright's article
"Managing a Business for Stock¬
Through the Vicissitudes
o f
Inflation,"
;
"Man¬
article
and
President, American Locomotive
I
good deal
a
V *'■;of interest the
:'v-
re¬
with
read
base their
material
a num¬
DUNCAN W. FRASER
Bank, New York City
I
In This Issue
Special
in this issue for only
room
re¬
on
it-
make
President, Union Dime Savings
postwar
the theory that our econ¬
omy
has reached maturity and
that our chief problem is to learn
(Continued on page 224)
;
plans
come to hand regarding the views and con¬
Wright in this excellent article. Due.to space
"led to make certain
are
proposals
Denying the fundamental tenets
f
a
WILLIAM L. DeBOST
"The
at the
draft proposals for an International
Exchange Union
this week by Canadian Experts on Plans for
Organization, who in their observation state that
following their study of the British and American proposals, they
The first group of comments are given herewith:
,
WOL»y
have been announced
the
his
of( Enterprise"
just
by Scribner's Sons.
a
ber of these expressions and others will appear in subsequent issues.
postwar
world
Queeny
With
limitations, however,
holds forth for
d
Currency Stabilization Programs
Tentative
submit
expectations.
clusions drawn by Dr.
emical
m
hedge
fct 1115^
Post-War Monetary
merous
f
o
nto
nsa
best
thorough knowledge of inflation and defla¬
tion conditions,
and their effects upon business and finance the
management and investor can prepare, a blueprint for a flexible
policy.
?
*
i
:
With the foregoing in mind Dr. Ivan Wright, Professor of Eco¬
nomics, Brooklyn College, wrote his article, "Managing a Business
for Stockholders Through the Vicissitudes of Inflation," which ap¬
peared in "The Chronicle" of July 8.
As was to be expected, nu¬
the
chairman
the
is
and
prophecy will
fall
management
0»'
Proposals Offered As Substitute For British and U. S.
corporation
or its stockholders have against inflation and the deflation
readjust¬
ments that follow.
The management should have a full knowledge
of what to expect and a flexible program constantly in the
processes
of readjustment' to meet changing economic and political conditions
most
avagant
r
well-informed
r'TlCtr
Canada Proposes Plan For
International Exchange Union
Vicissitudes Of Inflation
with
certainty
that
Thursday, July 15, 1943
11 Stockholders Through The
"The possibilities of the future,
now that industry has
embraced
science, are so limitless that only
forecast
Office
Pat.
Managing A Business For
V
one
S.
Members
New
York Security
52 WILLIAM ST., N. Y. 5
Bell
New York
Dealers Assn.
HAnover 2-0980
Teletype NY 1-395
Montreal
Toronto
ira haupt & co.
Members
New
York Stock Exchange
111 Broadway
REctor 2-3100
Teletype NY 1-1920
•Trading Markets in:
Thiokol
We Maintain Active Markets
Corp.
^ y' I y
KING
Security
Ass'n
■
;
Telephone
BArclay
s
NY
---Teletype
•>
Wyomin
1971
'*/,
Steiner, Rouse & Co.
McDonnell &Co.
v
>.
'■*"
!
•'
New
Members
York
New
NEW YORK 6, N. Y.
7-0100
r
;
and Other Principal Exchanges
115 BROADWAY
HA 2-2772
Exchange Fl., N.Y.
*
3s,
•
Dealers
Birmingham Gas.
Remington Arms V
;
Walworth Pfd.
Goodbody & Co.
Members N. Y. Stock Exchange
Alabama Mills
Cyanamid Pfd.
Warren Bros. Class "B" & "C"
.
CANADIAN BANKS
Established 1920
York
.
X
CANADIAN RAILS
Mid-Continental Airlines
New
.; V,
,
.
CANADIAN MINES
Common
Members
Thursday, July 15,>1943
-
Botany Pfd. & Common
;
CANADIAN UTILITIES
Peoples Light & Power
&
American
for
CANADIAN INDUSTRIALS
Common
KING
;
Z
Welch Grape Juice
40
FINANCIAL, CHRONICLE
&
THE COMMERCIAL
202
•'
"»>
■
•
-
Members New York Stock Exchange
■
25 Broad
Stock Exchange
York Curb
1-672
NY 1-1557
-
Direct wires to
.
.
.
La.-Birmingham, Ala.
New Orleans,
'■7" 120 BROADWAY, NEW YORK T1
^ V
Tel. REctor 2-7815
. J
BEZiII TELETYPE NY 1-423
St., New York 4, N. Y.v
HAnover 2-0700
Exchange
branch offices
our
U;
IBA Nominees For Office Are Annonnced l Stock Market In Line
;
.
*
Bonds
'
■
&
investment banker of Washington,'- D.*: C.}
of the Investment Bankers
Emil
Association of America to be elected at the; association's annual meet-
•
Rails and Industrials
Schram, President of the
New York Stock
Exchange, visit¬
ing the Chicago Stock Exchange,
& Sou.
Common
Actual Markets in
Says Sckram of NYSE
will head the official ticket of nominees
Du Mont Labor., new
Ft. Dodge, Des Moines
Clifford Folger,
John
Cons. Machine Tool, units
.
told members that neither the Se¬
Axton Fisher Tobacco,
B
Pittsburgh Hotel 5's, 1962 & 1967
has
Washington Prop. 7's, 1952 & Com.
Mitchell &
.
Teletype N. Y.
the
on a cash basis, he said, add¬
ing that member borrowings have
been
held
been
WOrth 2-4230
Bell
,
that
market
much
Broadway, N. Y. 5, N. Y.
120
hinted
as
Listings,
in "The Sheets"
is. getting out of
hand;' The market has been pretty
Exchange
Stock
much
so
stock
Company
Baltimore
Members
See Our
curities and Exchange Commission
nor
the Federal Reserve Board
no
in
line
'
-
*
C. t. de Millers & Co
has
there
competition with national
credit needs.
1-1227
and
'
1,120 Broadway, N. Y. 5, N. Y.
teletype NY 1-2361
V
REctor 2-7634
;Mr; Schram, who was accompa¬
nied by John A. Coleman, Chair¬
of the New York Exchanges,
man
and
1952
6.
■
<:
J. C. Folger
Taggart Corporation
Albert
T,
Edw.
Armitage
Hopkinson,'
Jr.
Preferred
31
York
Neio
;V
Curb
of the firm of the
ness
which
&
transaction
Preferred
same
established
was
quarter of a
Douglas Shoe
Common
Indiana Limestone
...
0s, 1952
j
a
of
Vic
&
Preferred—5Vis,
1949
H. G. BRUNS & CO.
20 Pine Street,
New York 5
two
Telephone: WHitehall 3-1223
Bell
years
as
Others
Lumber
Common, New
&
Aircraft
Happiness Stores
Vertientes-Camaguey Sug.
York
Corp.
When
N.
Y.
am
T.
Teletypes—NY
1-1126
&
are:
since
1929
present
president
organization
has
He
and
in Washington
extensive
of
since
his
1931.
business
in¬
,
>
men
this represents re-
since
they
at
are
present serving as vice-presidents.
Nomination
Y.
mount
1127
tions
to
of
is
considered
election,
the
Board
been approved.
tanta¬
the selec¬
as
have
;
always
change (associate) was associated
the ; old firm for over ten
years
as
a
partner.
Henry D.
Boenning, Jr., will resume an ac¬
tive interest in the organization
upon ..his
return from military
service.
He
a
vice
chairman
of
the
War
Bond Committee of the
District of Columbia, co-chairman
Savings
the
Washington Victory Fund
Committee and also a member of
of
executive
the
committee
of
(Continued on page 219)
a
the
as
i
■
,{»»vV-
Request
on
BUCKLEY BROTHERS
Members New York Stock Exchange
1529 Walnut
U
Philadelphia 2, Pa,
— PH 265
N. Y.
RIT 4488
DI 4-1527
St., Los Angeles
W. 6th
530
a
St.,
Bell Teletype
Phila.
14 '
Paul
have been associated with the
years
as
£.... Circular
w
A. Haffner and John R, O'Connell
tor
Taking an active part in war
financing, Mr. Folger has served
serving
now
Captain in the U. S. Army.
ganization
addition, being a direc¬
of the Chesapeake and Poto¬
is
>
Preferred
&
York Corporation
WkJCommon
with
terests in
Armitage of
nominations
Security Dealers Assn.
Wall Street, New York 5, N.
Tel. HAnover 2-4850
Bell
meeting,
business
vestment
Boston;
first three
Members
annual
submis¬
pany, Chicago, all nominated as
vice-presidents. In the case of the
Issued
cma
37
H. Collins
mac Telephone Company and the
Coffin &
Albert H. Gordon Appalachian Mills of Knoxvilie,
of Kidder, Peabody & Co., New Tennessee, chairman of the board
of the Piedmont Mortgage Com¬
York; Edward Hopkinson, Jr., of
Drexel & Co., Philadelphia; Vic E. pany, treasurer and director of the
Breeden of R. H. Moulton & Com¬ Mayflower Hotel Corporation and
of - thei Cumberland
pany,
San Francisco and Julien president
Trust Company of Knoxvilie.
H. Collins of Harris, Hall & Com¬
Albert
Old
Burr,
Northrop
for
Governors
the
at
sion
>>
.
association's
the
by
of
Board
v
.
the regular ticket, as
on
approved
Long-Bell
vice-president of
a
the association.
Teletype NY 1-1843
Common,
Julien
Breeden
ing in New York, November 3, 4, and 5, it was announced today by
Jay N. Whipple of Bacon, Whipple & Co., Chicago, President of the
association.
The presidential nominee is head of the Washington
investment house of Folger, Nolan f
Mr. Folger has been in the in¬
& Co. and has served for the last
Struthers Wells
Common
E.
1959
Common
«
change and New York Curb Ex¬
6s,
*
Autocar Co.
•
Williams, member
Philadelphia Stock Ex¬
Properties
Retail
Four Wheel Drive
in
firm: Albert J.
the
■
TRADING MARKETS IN:
;
.
century ago, for the
of a general invest¬
Preferred
6%
:
name
over
The following
comprise the partners of the new
Queensboro Gas & Elec.
York 5
Bell System Teletype NY 1-1790
stocks and-bonds.
:
;
;
1915
Telephone DIgby 4-7900
ment and commission' business
Inc.
Established
30 Pipe .Street, New
t•
PHILADELPHIA, PA.
Boen¬
ning & Company,'? on July 12, 1943,
succeeded and acquired the busi¬
Telephone COTtJandt 7-4010
System Teletype NY 1-1548
Spg. Brook W.S.Pfd.
Robert C. Mayer & Co., Inc.
g New Partnership
Exchange
Bell
W. L.
Spokane Int'l Ry. Esc. Recpts.
Scranton
Ohio Match
Boenning & Go. Forms
New York 5
Nassau Street
the Board of Gov¬
change.
Vanderhoef & Robinson
Members
on
of the New York Stock Ex¬
ernors
,
United Cigar Whelen
|,
Chicago
Pfd.;
Interstate Bakeries,
Kenneth L.
the
resentative
Preferred
'•
on
the inspection
Harry M. Paine, Chairman,
Smith, President
Exchange, and
Charles C. Renshaw, Chicago rep¬
of
Deep Rock Oil Corp.
conducted
was
tour by
Interstate Power
for
or¬
'seventeen
over
in the
capacities of statis¬
tician and
cashier, respectively.
Offices of Boenning & Company
are
located at 1606 Walnut Street.
Steven
Taylor Joins
f| E. H. Rollins & Sons
PHILADELPHIA, PA.
P.
—
Steven
Taylor, formerly with Salomon,
Bros. & Hutzler and Stroud &
Mid-Summer Idea Review
v
In
the
issue
current
"Preferred
of
their
is
now
Co.|
in the trading department
of E. H. Rollins &
Sons, Inc., 152B
Stock
Guide," G. A.
Saxton & Co., Inc., 70 Pine Street,
New York City, review a number
of situations which they have out¬
lined in previous issues as offer¬
ing attractive possibilities. Copies
of the "Guide," which also con¬
tains comparative figures on pub¬
lic utility preferred and common
stocks, may be had from G. A.
Saxton & Co. upon request.
Walnut Street.
Position Markets:
i-
Aircraft t Diesel Equipment
American Fuel & Power, Notes
Chefford Master
Columbia Baking,
Mfg.
Pfd. & Com.
Galveston-Houston Co.
Trading Markets in
All "AIR LINE" Stocks
$3.50 Cumulative Preferred
Missouri
,
MISSOURI
Elastic Stop Nut
No funded
debt
bank loans.
or
Bendix Home Appliances
as
of
Earnings
April 1, 1943.
1942 in excess of
$9.00
per
share
First Boston Corp.
ISSUES
Descriptive Circular
120
|
I
70 PINE ST., N. Y. 5
Teletype
WHitehall 4-4970 T
NY
l-titta
|l
Ward
Established
1920
Direct
Wires
&
Co.
Broadway. New York
Phone:
REctor
2-8700
Bell Teletype NY 1-1288
Members New York Security Dealers Association
to
New
BOSTON
—
HARTFORD
—
PHILADELPHIA
on
Nu-Enamel
Members New York Stock Exchange
25 Broad St., New
HAnover
2-0600
York 4, N. Y.
Tele.
Southwest Consolidated
U. S. Radiator,
Request
SIMONS, UNBURN & CO.
NY 1-210
Pfd. & Com.
England Industries
Accumulations $17.50 per share
All issues
G. A. Saxton & Co., Inc.
Jefferson Lake Sulphur,
Com. & Pfd.
Pacific
PACIFIC
FASHION PARK, Inc.
York
Pfd.
Corrugating
T. J. FEIBLEMAN & CO.
Members
New
Orleans Stock
Exchange
41 Broad Street
New York 4
BOwling Green 9-4433
Tele. NY 1-493
-Volume
f
158" Number 4194
THE COMMERCIAL & FINANCIAL
: The COMMERCIAL and
1
FINANCIAL CHRONICLE
/J'''.
' ""
h,
[•! '
|
Reg. U. S. Patent Office
William
BEekman 3-3341
•-)
A. E.
7'Y"
j
William Dana Seibert, President
7
William D.
J
7
Vv
July 15> 1943
(Fred
|
Vertientes
Alegre Sugar
Reentered
STRAUSSBROS.
Members
as
York
New
Security
Dealers
OUR
32
Broadway 7] Board of Trade Bldg.
NEW YORK 4
"
DIgby 4-8640
Teletype NY 1-832, 834
second-class matter Feb*
$27.50 per year; South and
America,
Spain,
Mexico
and
Cubar $29.50 per year; Gfeat Britain,
Continental Europe (except Spain), Asia,
Australia, and Africa, $31.00' per
year.
CHICAGO. 4
foreign
subscriptions
and
7
Teletype CG 129
Our
Real
Estate
Department
has
Securities
specialized
for the past twelve
years in:
REPORT
Call
a
tration
awaiting the
of
required
office
in
in
Building, Atlanta, and
underwriters, partici-;
act
as
corn
7
of
The market, these
To
B.
activity
Gaines
has
formed
Gaines
i
&
general
Eastman, Dillon & Co!, members
Exchange,
will open an office in Chicago in
the Field Building on August." 11
|The. office will be under the su¬
pervision of AlvinF. Kramef, who
lis expected to become a partner
the
4
what
' busness.' Mrf
formerly president of
recently
dissolved* 7 firm
Milhous, Gaines & Co., Inc.
of
the
more
'
:
war
that
on
Mr.
date.
Adaibs
Hew
jPeck,
&
York
is that the market
concerned- with
an
•
is
invasion
con¬
Trust
Boston
n^anager in the
Company of Chicago', from for
which position he is resigning on
August 1 to join Eastman, Dillon
/
)
.
,
over
is
decisive, that is, decisive to
the extent that it
points to a
mean the im¬
•
crisis that may
minent end of hostilities. The
And
satisfying,!
Corporation
CINCINNATI,
>
OHIO —Stanley
Fountain Square
Cooper & Co.,
•Bldg., formerly a sole proprietor¬
ship, has been incorporated and'
officers of the new corporation are
Stanley M. Cooper, President and
Treasurer, R. Kneeht, Vice-Presi¬
dent and Secretary; Ralph C. Ben¬
Sicily, while im¬
portant, does not, according
to the market, mean a turn¬
ing point in out ' European
war
no
cessful
New York office
v
^
securities*
pears.
19 years.
is
a
director
of the
firm
in
^addition to the officers.
7
• a
-
invasion
member
i;
have
virtually disappeared in
months,
but ~ w i t h- o u t
The banks', ability to go along
com¬
and
preferred, and York
Corporation w. i.:, which offer at¬
tractive possibilities
at current
levels the firm believes.
Copies
of these interesting circulars may
the
be
City
mon
had
from
7,;7'.7
firm
the
7-
7
upon
re¬
V.7 .:7
7
practically without
becomes clear if
have
of
the
excess
funds;
end
an
in
IN WAR
AIRLINE
situation
as
set forth
Bank
of
New
York.
in
points out, the in¬
area
are
Last
stocks all
were
.
Punta
Alegre Sugar
Vertientes
Camaguey Sugar
J.F.Reilly&Co.
Members
New
Ill
York
Security
Dealers
Assn.
Broadway, New York, N. Y.
REctor 2-5288
Bell
System
Teletype,
N.
Y.
1-2480
Federal Screw Works
and
right a
Stromberg-Carlson
Bartgis Brothers
>
,
fact that
their
to
substan¬
•
'
The
Preferred
77
Memoranda
HtRZOb&[oM
it didn't
week
over
there
the board
up
must be
indications
as
evidences
■
7,
request
on
179 Broadway
COrtlandt 7-6199
7.7 Bell System Teletype NY 1-84
Central States Elec. Corp. (Va.)
Common, 6% Pfct. & 7% Pfd.
Great American Industries
they did not live
regarded
j
Segal Lock & Hardware
not
which gave every indication
of
renewed .strength.
The
:
7
(
was
rather because
advance.
;•
July letter uf the National-
As the bank
INDUSTRIES
of
Greater New York Breweries
Berkeley-Carteret 5Vis, 1951
*
:>v7 *
air-
*
transport
stocks,
Savoy Plaza 3-6s, 1956 W.S.
which have been
outstanding
time, got
fillips last week
performers for
added
news
highly liquid short- which should
7;
7(Continued on page. 219) i :•
(Continued
some
have
on
added;a
Frank C.Masteison & Co.
Members
New
64 WALL
ST.
York
Curb
Exchange>
NEW YORK 5
Teletype NY 1-1140
HAnover 2-947W
219)
page
OF TOMORROW
SECURITIES
NO. 3
r
7
Red Rock
BRANIFF
...
Federal UliL Gas
The characteriza¬
tial holders of
*
Y.
1-12#*
that
failure.
happens to
one
the explanation
run across
stitutions in the
IN PEACE
N.
Teletype NY
suc¬
much that it didn't decline
but
reserves,
as
such,' of
banks in the New York
-
Autocar, Co,
ceptions.:,
so
Buckley Brothers, 1529 Walnut
Street, Philadelphia, Pa., members recent
evidence of creating any -undue
Philadelphia
Stock Exchanges, have prepared strain on the general banking pic¬
ture in the area.
interesting
circulars
on
Four
quest.
2-8970
Argo Oil
Guadal¬
of
tion of its behavior
7777
■
N. Y. Excess Reserves
of the New York and'
Drive,
Broadway, New York,
HAnover
common
the
than
more
canal meant
indicating the application of the
"eggs and basket theory," it ap^
Excess
Wheel
J. GOLDWATER & CO
inc. 7.
Members New York
Security Dealers Assn.
39
of
invasion
reported a growing tendency on)
the part of the latter to attempt '
area
Now A
.
war
a
itself
-
Situations Of Interest
,
Participations
■
City,
office for more: than ^12
Mr. Perry has been office
years;
Trust
Ctfg.
is
,
1929. Since 1940 he has been
Co.'e
Mtge.
other
isolated
battle
.
nected with the Trust Department
.of the City National Bank and
Ctfe.
news
theatre of war.
what amounts to an effort
63 Wail Street;
|at; 77v7;7'';'-'77;-- .v. * :"'v * 77 *77.77'7/7';^:7
have admitted
"hedging" against the future.!
Kramer was ohe of the founders
Reginald Wood and George W. 7; This is done
At the beginning; of this
through the sale of 1
land Executive Vice-President of
f erry to partnership in their firm.
important blocks of stock and the column
I said, the 7 market
the Federal Securities Corporation
Mr.
Wood
has
been
associated
placing of the resultant funds into
of' Chicago, leaving that firm in
acted poorly, with a few ex¬
with the firm as manager of the a broad list
of other
firm
:
Ctfe.
Co.
Title
&
all
:
r
just another battle in
Substantial pieces of bonds
naturafly originate Tprmerpatty
With" banks, insurance compaih- i
7 ie» and corporations.
But es- j
tatejs are active too and there! is
Adams & Peck Admit
does not
watch out for re-
:•—unless, the
t
stocks.
>
market
news
good
battles—and
7.
•of the New:York Stock
,
is*
In
Co.
The
not
there is x broad demand ready
to absorb such emissions. :
..,^T-r
-
7777
soon,
reason
Septem-
Each day brings forth sizeable
off bonds and> also in-
vestment; quality
Invited
Complete Statistical Information
resulting from the invasion
of
Sicily is amazing. - One
people hold,
blocks
securities
was
.
If
as
indifference to the
on
.
Jn
Co.
entire market, with
exceptions, gave a poor
( performance last week.
Its
the part of
investment officials
v77
Specialists
Title
rare
precedes)
Loan which is due out in
National Building to engage in a
Open In Chicago
;i
toward building up cash reserves
for the purchase of the Third War
Own Investment Firm
Gaines
nett
YORK
4-6551
By WALTER WHYTE
heavy Treasury financing projeet. -7;■:;7
BIRMINGHAM, ALA. —Walter ber7 7'7:;-
Eastman, Dillon & Co.
I;
it I
WHitehall
Art
Bank
actioil.
a
■
institutional
1-2033
occur
in regis- i
between
folios which normally
Co., Inc. with offices in the First
-
give
Mtge.
and
construes'
expiration i
time
We
Bond
close to it.
the usual shifting about of port¬
'
Milhous, Martin &
James F. Milhous,
indicates
WHitehall 4-6330
NY
the
are
Some observers feel that they
can
discern the beginnings of
bonds,
McKnight are
President; Wayne Martin and H.
Neil McKnight, Vice-Presidents. I
City Banks
Teletype
number of which
filing and offering.
securities.
by
St, N.Y„ 5
Bell
their
the
for quotations
us
on
through. /"
Birmingham, Ala. and the change
name to
Milhous, Martin & McKnight, Inc.
The company, will
of
announces
porate bonds and stocks and local
U Members New York Stock Exchange
& Co.
of
box,
to
STREET, NEW
Inquiries
Market
\
•
/
This business is- proving de- '
cidedly helpful to underwriting j
firms
pending. resumption of i
corporate financing operations, ;
discontinuance
Newburger, Loeb & Co.
•
yonr
able
Lawyers
action,. in; face of
good war news is poor. Many
are
in a position td
stocks now in selling area or
s
the
volume' going
pating distributors and dealers in
Mortgage Participations
New York
who
check
Milhous,
—
u,,.
.
judging by the comments of
those
ATLANTA, GA.
Gaines & Co., Inc.
.,
Officers
Issued
.....
Says
bond houses is running at a brisk
pace
Southern' municipal
Title Co. Certificates
the
in
be
SOME
Telephone:
Walter Whyte
7 Day to day business of larger
Millions,
will
Prudence Co. Issues
•in
bond»
should
least
WHOLE
worthless
Lawyers
continue its offices in the Rhodes-
advertise¬
ments must be made in New York funds.
•
.Teletype NY 1-5
? r
those
REAL ESTATE SECURITIES
s
v
' Harrison 2075
.
Haverty
NOTE—On account of the fluctuations
) Jn the rate of exchange, remittances for
t
we
at
99 WALL
Tomorrow's Markets
:
40 Walt
f
(
i
Ass'n
Canada,
:
25 Broad Street. New York
„
Telephone HAnover 2-4300,
I Central
-
r
r
3, 1879.
!
'•:
j
but
you
you your
on
and
Chicago—In charge of
Western' Representative,!
Gray,
7 Subscriptions in United States and
Posessions, $26.00 per year; in Dominidn
i
back
Offices:
H.
Copyright 1943 by William B. Dana
Company.' - <•77.77:
;7:7'";v7:-V\
''"of
Camag'y
& Co.
t"
ruary 25, 1942, at the post office at New
j York.r N. Y.v under the Act of March
,
We can't
give
roll
Spencer Trask
,7.::
Punta
issue on Monday]"
.
f
ROLL-BACK
Puget Sound Power & Light Co. 5% Preferred
stocks
Building (Telephone State 0613).!
K London—Edwards & Smith,
1 Drapers':
; Gardens,
London, E.C. "7 7
' '
!
t
AND COMPANY
(When Issued)
■i Field
■v
icrasifin
Southwestern Gas & Electric Co. 5% Preferred
7;j'i
I Published twice a, week [every
! Thursday (general news and ad¬
vertising issue) with a statistical
>7 Other
B. S.
Tt'iggs, Business Manager
7 -Thursday,
:f;777;:
Staley Mfg.
Long-Bell Lumber
7
,
trading interest in
•.
VHerbert D. Seibert,
Editor and Publisher
active
an
203
Rochester Gas & Electric Co.
5% Preferred
.«•.
25 Spruce Street!, New YOrk 7
■
We have
H. H. Robertson
'
'
Daria Company
Publishers
B.
CHRONICLE
NATIONAL
PLASTICS
NORTHEAST
7
i..
7
7*
Bought
?
Eastern
Bottlers, Inc.
.
—
7;
Sold—Quoted
:.
■
Bonds
;
.
Corporation
Preferred
Common
Warrants
MIDCONTINENT
Copy free
AMERICAN EXPORT
on
request
Established
1847
Members N. Y.
Security Dealers Ass'ri
60 Broad Sf.
Tele. 1-1825
New
York
Stock Exchange
N. Y. 4
.
C.B.Richard & Co.
Members
60 Beaver
Street
New York
Established
r
-
LUCKHURST & CO.
Bought
Hon Rose sTrqster
CHICAGO & SOUTHERN
.
...
74
<
•
1914
7
Members New York Security Dealers Association
.
BOwling Green 9-7400
—
Quoted
.
CRAIGMYLE, PINNEY & CO.
<
Members
Teletype:
NY
Sold
.7.7.,.
'
Trinity Place, New York 6, N. Y.
Telephone:
,.
-
—
1-375
one
New
wall
York
Stock
street,
Televhone
Exchange
new
WHitehall
york
4-5280
5
.1
t
*.*» rtv »
;
'•'.*; '-
"" "«
»«•»>' ■" •*.»' *>•*' v''
■- ■•>
' *•, •'•••■*♦■■• 1
- iv
: -
.
,
»«• 4 v« »»■.# 4-
- '••• »*» * . fww.%46****
,
CHRONICLE
THE COMMERCIAL & FINANCIAL
204
To Dealers:
Thursday, July 15, 1943
I'-'
UTILITY
PUBLIC
Are
AMERICAN TURF ASSOCIATION
Sold
Stock Bought and
■
;<v;,
If
so,
take
'
'• t
,,
'18th
<
INDUSTRIAL
;
-
RAILROAD
furnished to dealers
MUNICIPAL
-
BONDS
request.
on
:
:
INCORPORATED
;.:
PELTASON, TENENBAUM,
HOME LIFE BLDG.
FLOOR, KENTUCKY
Distance 238-9
'
.
,
,
which brings this situation up-to-date (includ-
,
803 Landreth
LOUISVILLE, KENTUCKY
Long
-1
.
ing outstanding facts revealed by the company's
recently published annual report)
.'.r
■.!;/
BANKERS BOND sS
I
sound, underpriced bond for retail?
a
Associated Electric 41/2,s and 5's
\
y
#
look at
a
A study
ml
seeking
you
'<\
Teletype SL 486
Bell Teletype LS 186
'
'
INCORPORATED
Mo.
I
Telephone L. D. 240
.
Roosevelt signed
President
■
Milwaukee
Boston
Red Rock Bottlers
July 12 the $143,000,000 Urgent
on
^'
.
CHICAGO
New York
President Charges Congress Willi
'Encroachmenf In Rider To Pay
Information
Statistical
A.CittLYN^COMEOTr
INC.
St. Louis 2,
Building
„Common
designed to supplement appropriations of various
This bill carried $89,000,000 in reappropriations of Presi¬
funds and included a rider providing for the drop¬
ping of three Federal workers unless they have been .nominated by
the President and approved by the Senate before next Nov. 15. The
~
'"
•?:' V--... t-.y —»*.s
-v.-■•••'.>'#U >*' \
::»•.
Deficiency Bill
memoranda, studies, surveys and
statistical reports, all prepared by our Statistical De¬
partment in 1943, are now available on the following
agencies.
issues:
three
Individual analyses,
American Barge Line
Federal Electric
;
Foote Bros. Gear
Clearing Machine
Foote Bros. Gear &
International Machine Tool
Manufacturing
Lipe-Rollway
:
Marmon-Herringtpn
Black Hills Power and
Public
'
-
.
Cities Service V
have vetoed the
,
East Coast Public Service
J |! I
Northern Utilities
-
fact
f RepublicServicer
Birmingham Terminal 4/1957 ,- ■< 1
Boston & Albany 41/4/1078
Intnatl. Rys. of Cent. Am. 5/1972
Macon, Dublin & Savannah 5/1947
Maryland & Pennsylvania 4/1951
Washington County 314/1954
W. Virginia & Pittsburgh 4/1990
essential
*
•
-
•
*
Southern Cities Utilities
Telephone Bond & Share
Industrial Bonds
American LaFrance-Foamite
.
.
California Consumers
;-
-
Consumers /■',
\
'
V5 '
1
-:V\
'''•*>■
\*
■
'
r! :
.•
•
/
1■T
'
*
•f-.'X'-p
Crowley, Milner
Gair (Robert)
,
Lehigh Valley Transit .'
*
-
and all of this material
Host
Salle
La
Knies before the
C.
-
are
Direct Private
fcr
f
-
-
-
J
'
>
^
.
<•>
1
'.M-
-*"-1
•
I
\
\
i h
.1 s
.
<\
>
>
;f-
vi
•
U
'
'
Rippel & Co.
Established
1891
'
18 Clinton St., Newark 2, N, J.
3-3430
MArket
New
2-4383
Phone—REctor
York
Allan M. Pope Heads
N. Y. Welfare Council
at
available upon
fur¬
the undersigned
a
the
of
dent
;
-philadelphia, pa.
Melvill Pope, Presi¬
First
Boston
Corp.,
special meeting of the direc¬
tors, was elected President, of the
Welfare
Council
of
New
York
Announce the dissolution
of the firm of
City, succeeding the late Alfred H.
Schoellkopf. The Welfare Council
is
\
a
federation of 700
New York
health and welfare agencies,
BOENNING & Co.
to take effect july 12.
public and private.
Colonel Pope is
the
1943
Investment
a
both
of
governor
Bankers Associa¬
tion of America and was President
from 1933 to 1935 of the American
Street
v
albert j. williams
arleigh p. hess
•
J. S.
by . Arn
Massa-:
Savings
Stock Exchange.
y:-t-?!•{'
-
Host;
-
Col, Allan
Teletypewriter CGO 650-651
—
Vr'.v
*
address—"Have You
Parasite?"—delivered
thur
'k
•
Jersey, Insurance Co.
of N. Y.
1606 walnut street
v
DETROIT
'
*
Acceptance Council.
CHICAGO 3—Telephone Andover 5700
—
ji 9
Parasite?,
•-
The
or
>v
«-
Straus Securities Company
South
1
-
Banks Associa¬
The President said the rider, was
unconstitutional, unwise and dis¬ tion is now. ready for general dis¬
tribution and .copies may be had
criminatory, adding that, in his
request,; from
Vilas
&
opinion, it was not binding; on upon
either the executive or judicial Hickey, 49 Wall/.St., New York
City, members of the New York
branches of the Government.
Our Trading Department is prepared to
nish quotations on these and other issues.
Your inquiries are invited.
MILWAUKEE
j
Monon Coal
request.
135
Or
chusetts
United States Radiator
any
Have You
it contained funds for
governmental functions.
Southern United Ice
Copies of
(Newark)
virtu¬
bill except for the
Old Ben Cbal
Scranton Transit
;
Minnesota & Ontario Paper
International Railway
American Insurance Co.
Federal
,
Chicago (All issues)
Conestoga Tractidn
of Newark
*
During the course of debate on
Cosden Petroleum
Bonds
that
,
Public Utilities Consolidated
"
was
Firemen's Insurance Co.
workers.
in that it
provides the punishment without
judicial trial.
He said he would
Citizens Utilities
Railroad. - Bonds- -
Baltimore & Ohio 4/1944
measure
overtime pay-due to *
for
ally a bill of attainder,
,
NEWARK
The funds ap¬
-
New York 4
propriated in the bill were chiefly
reading parts of a message which
will later send-to Congress,
-
Crescent Public Service
branches of
The President,
he
said that the
American Railways
<
• Associated Public Utilities
•
them ta continue.
Orleans Stock Exchange
41 Broad Street
15, at which time Presidential ap¬
pointment and Senate confirma¬
tion would be required to permit
Government.
Quoted
<—
BOwling Green 9-4433 Tele. NY 1-493
three would be delayed until Nov.
the
American Gas and PoWer
Woodward Governor
-
insistent that
as
in September
reconvenes
Sold
—
Members New
"At his press
executive and judicial
Utility Preferred Stock
Public Utility Bonds
/'
-
«..
/American States Utilities
Palace Travel Coach
Snap-On Tools'%
Sport Products«
•— '*
Steel Products Engineering
Superior Tool & Die
Light
Public-Service of Indiana
Miller & Hart
3-
almost
objecting to this rider. He called
the attachment of this rider an
unwarranted encroachment on the
-
4
Common Stocks
American States Utilities
.
•
was
after it
Company
Public Utility
Mastic Asphalt
Mickelberry's F'ood Products
Mid-Continent Airlines
Mid-States Shoe
'
Miller Tool & Manufacturing
Traction
Senate
United Printers and Publishers
-
,
1953
FEIBLEMAN & CO.
T. J.
the
the
from
However,
stricken
be
payrolls.
conference on July they be kept on the job, but in
the end yielded to a compromise
13, the President disclosed that he
will send a message to Congress plan under which dismissal of the
Poor &
General Industries
f
Federal
Bought
bill, the House voted several
employees
liam E.
IA pe-Roll way
:
5s,
times that the three Government
United Stockyards
Machine
General Bottlers
Roper (George D.)
the
Dodd, Jr., of the Federal
Communications Commission.
v
Goldblatt Bros.Hearst Consolidated Publications
Detroit Harvester
James
,
& Machine
General Bottlers.;
C. G. Conn
:
Common
employees are Robert Morss<&
Lovett, Government Secretary to
the Virgin Islands Government,
and Goodwin B. Watson and Wil¬
Industrial Preferred Stocks
Common Stocks
Industrial
Consolidated Textile
dential emergency
.
'
estate of henry d. boenning,
INDIANAPOLIS
Wires from Coast to Coast
dec'd.
Idapard lnrsh & Go.
Admits Six Partners
.
to The Financial
(Special
Chronicle)
CLEVELAND, OHIO—Frank E.
Baker, W. Yost Fulton, Wilson C.
Handyside, Frank B. Reid, Jack R.
BOENNING & CO.
members
members
We take pleasure in announcing
philadelphia
new york
curb
Staples and D. J. Wilkinson have
exchange
stock
exchange
been admitted to
partnership with
(associate)
Maynard H. Murch, member of the
that
1606 walnut street,
philadelphia, pa.
Cleveland
! MR. DAVID W. LOVELL
the
of
and
undersigned announce the formation
above
the
12,
july
firm
1943
the
for
Euclid
were
MR. WINFIELD H. PERDUN
Exchange,
Murch
&
Co.,
in
925
Avenue. All new partners
formerly associated with the
firm for
transaction of a general
Stock
H.
Maynard
some
time.
investment and
bonds.
commission business in stocks and
CAN YOU USE A
have been admitted
as
albert j. williams
General Partners
member
in
our
philadelphia
member
firm
new
henry d.
stock
curb
york
: ■
exchange
exchange
Trader
(associate)
boenning, jr.
former partner
haffner
paul a.
john
Laurence M. Marks & Co.
Members New York Stock Exchange
>!•
49 Wall
Street, New York, N. Y.
July 9, 1943
j
r. o'connell
Army
■'
I
TELEPHONE:
new
;
-
.
.,
.
*
'
PENnypacker 8200
york
wires
COURTLAND
WHITEHALL
i
:
N. Y. unlisted
house, recently released from
manent
-v
The
Service
wants
connection.
Financial
Box
Chronicle,
per¬
J8,
25
7-1202
4-6770
Spruce St., New York 8, N. Y.
IIWKWUMmai mmw MWfWWWlM'Ut Wt|lfcin<<'M,llllt|(M-l
Volume 158
Number 4194
THE COMMERCIAL & FINANCIAL CHRONICLE
•
I
fl'Sfifc. <-A. il' ' >A |.?t
.
V
'!
,
'''-I
\rj
>.'".
' J "'. "'<1,1 W^*Wft
T"
205
.
Kansas City, Fort Scott
REORGANIZATION
II7-7.7;
RAILS
-
;
4s, 1936
Circular
-
Abitibi Power & Paper
5s, 1953- Bonds -c'ds.
request
on
Inquiries Invited
Aldred Investment Trust
Members
;
.
MEMBERS
New York
New
Stock
Exchange
Curb
York
Exchange
Baltimore
Boston
Stock Exchange
Stock Exchange
Cocoa Exchange
Coffee & Sugar Exch.
New York Cotton Exchange
,
York
Tele. NY 1-2972
being liquidated and it
terest at
Laurence
The Interim Commission of the
Conference
on
M. Marks & Co., 49
New York City; mem¬
bers of the
New York
Lovell
to
have
Agriculture is scheduled
begin its formal sessions in
Washington today (July 15) in re¬
sponse to a call from Secretary of
State Hull.
77
f Senator
Wiley
(Rep.,
Wis.)
pointed out on July 12 that this
Stock
Ex¬
change, announced that David W.
Food and
and
Winfield
H.
Perdun
admitted
been
to
general
partnership
Lovell
their
in
has
been
firm.
Mr.
associated
with
the firm for ten years, previously
having
been
& Co.
with
Graham,
Par¬
Mr.
Perdun, who has
International food-planning group been with the firm for eight years,
associated
with
begins its sessions in a country formerly < was
whose food situation- has been! Young & Ottley,
sons
the '
Admission
hopeless
Indeliberate."
v
•
Mr.; Lovell .and
partnership in the
previously reported"in
Mr. Perdun
firm
was
of
to
the "Financial Chronicle" of
j This was reported in a Wash¬
ington dispatch of July 13 to the
1st;;'J
New York "Journal-American" by
> its correspondent David Camelon^
July
Reorganization Rail
Outlook Interesting
j
who in his advices added:
fjli^Andin ^
'
■?
men
It is
period
of
and
com¬
parison of
.
into
will
a
precipitated
world-planning scheme that
do
to
us
in
world
a
the home front." •'
"7
The program before the Interim
(Commission will be, it is charged,
on
,.
/
a
projection into the realm of in¬
ternational
socialism,
said,if next Winter the people
just
the
short
are
sense
'what the planners have done to us
type of planning which the Sen¬
In
assailed
on
America
the home front.
itself, the
Senator
vegetables and
fruits, they must realize that "it
is due entirely to the inadequacy
of government
agencies."
\
The ( Interim
Commission
is
made up of 44 members, one rep¬
resenting
each of the Nations
,
which
ator
of vital
participated in the
conference at Hot
recent
Springs, Va., de¬
tailed reference to which appeared
in our issue of July 5, page 50.
payment of
postponed.
That
cautious)
factor
cord' of
and
The
7
address
by
being
"•
son's
been
Massachusetts
is
now
Savings
Parasite?
Knies
Banks
before
the
Association
ready for general distribution.
.
Members New
York Stock
49 Wall Street
1
unneces¬
the
•
the
step has
Minneapolis & St. Louis 5s
re¬
We
1934
Minneapolis & St. Louis 4s
1949
A
Iowa
Central 4s
Moines
Des
&
New York 5,
Bell Teletype NY 1-897
,
N. Y.
bonds, con¬
sidered likely next year, would
reduce the total annual require¬
these
to
below
a
requirement
on
earnings.
but
Contin¬
Three
years
the total of fixed and
tingent charges amounted to
ago
4s,
con¬
on
$13,250,000. With the reduced
charges it is difficult to conceive
of conditions under which Atchi¬
son's
credit
standing could
questioned in the future.
That
the
further
debt
ment mentioned above is
be
the
of
the
and
ter
showed
receivables
believed
j 000,000.
after
April
cash
from
more
:
Teletype BS 259
^
earlier.
year
The road continues
year-to-year gains in net
operating income and while taxes
will
undoubtedly take
toll
in
the
last
half
net income for all of
a
of
heavier
the
1943
$70,000,000 and $75,This would leave a bal¬
000,000.
ance
of at least
able for
$49,000,000 avail¬
capital expenditures and
debt retirement after
dend
on
With
tainly
the
this
seems
a
$6.00 divi¬
common.
background it
that an even
liberal evaluation of current
ing
yearj
should
between
run
cer¬
more
earn¬
would be fully justi¬
Earnings last year amounted
$27.79 a share of common and
power
fied.
should
$29.00
run,between
a
share
$26.00
and
this year.
30
items
the
U.
Spokane..
S.
v
than $180,-
Net working
allowing for
:
to show
(most of the lat¬
due
I Government) of
4%s!
The
company.
balance sheet
0425
liability, amounted to $78,868,826,
up more than $30,000,000 from a
to
retire¬
entirely
feasible is obvious from the pres¬
ent earnings and financial status
$51,346,000 of Adjustment 4s, 1995,
in addition to the regular serial
equipments. Both of these issues
CAP.
N. Y. Telephone HAnover 2-7914
^
more
than
$151,-
redemption of
Of
amounts
fixed
gent
only
the California-Arizona Lines
$8,000,000.
$2,053,840 would
represent interest on the Ad j ustment 4s, payment of which is not
of
non-callable.
a
systems.
of this report will be sent
•
balance of the callable
$8,501,000 of Debenture
and
the
for
.
the total of fixed and contingent
charges will be reduced to round¬
maturing in .'1955 and 1960.
There is a general feeling, sup¬
ported by the management's poli¬
cies to date, that both of these
issues will probably be called for
redemption some time in 1944,
1995
outlook
postwar
18 leading railroad
148 State St., Boston, Mass.
Tel.
Incorporated
4s
with
factual
of
Dodge 4s 1935
'
only two other callable bond is¬
Line
and
of
special
a
comparison
'
been
$22,545,000
prepared
1951
Fort
63 Wall Street
higher than
will then have
Short
have
copy
Frederic H. Hatch & Co.
a coupon
With the call for
,7'.
5
equest.
V
Iowa Central 5s 1938
.
This will eliminate the
last of the road's debt outstand¬
4s
YORK
statistical
group
Minneapolis & St. Louis 5s 1962
cur¬
300,000.
company
NEW
jresent
ments
are
Telephone: IIAnover 2-7900
over¬
approximately $28,-
General
request.
upon
Postwar Outlook For-
ind
Minneapolis & St. Louis 6s 1932
the amount of
the
Reorganization,
sent
Rail Reorganization Bonds
ly $10,100,000. Retirement1 Of the
and
*
72 WALL STREET
(in reorganization)
for redemption, on Sep¬
1, of the California-Ari¬
zona Lines 4%s, 1962, outstand¬
ing in the hands of the public in
outstanding,
of
be
! 1
1-2060
'
Atchi-always
had
two bonds outstanding, the
New York 5, N. Y.
Teletype: NY
ST. LOUIS RAILROAD
call
934.500
Exchange
3-3450
-
tember
4%. The company
Plan
will
Co.
MINNEAPOLIS &
property,
fact .that
structure
ing carrying
the
in¬
tem¬
one
the
latest
and
subse¬
V as
eminently
sound, the management has been
following' the, same -program as
the marginal carriers whose very
salvation depends on debt retire¬
leaving
Vilas & Hickey
WHitehall
job
by the riianagement.
The
principal
Lehigh Valley RR.
II WALL STREET, NEW YORK 5
considered
ment.
by
of
of
Special
Master, Tazewell Taylor, of
1951
to
as
Report
Van Tuyl & Abbe
(consid¬
long term
of
the,
debt
-
condensation
Draft
LEROY A. STRASBURGER & GO.
excellent r financial
done
capital,
the large
tax
International
Railroad
Inasmuch
Mclaughlin, baird & reuss
Members New York Stock
as
we
understand that the final recommendations
of
Special Master Taylor will be presented to the Court prior
to
Exchange
July 20th,
we
feel that
study
our
on
Escrow Receipts for
the
Common Stock
SEABOARD AIR LINE
BOND
BROKERAGE
Inquiries Invited
SERVICE
Reorganization proceedings
should
be of especial
I
interest.
Specializing in Railroad Securities
1. h. rothchild &
ONE WALL
STREET
TEL.
2-1355
NEW
YORK
5
.7.
-
*.
.
.77 :
7'
r
I
HANOVER
,
TELETYPE NY
1-1310
j
RAILWAY COMPANY
a
interest
the
prosperity, the high
Despite
1958
C.
Arthur
1st 5s,
Guaranteed
was
on
background,
earnings
and-: the
.
11;
I|i
Toronto
the :fmajor
that ;this
by the
2-0980
1-395
Montreal
SEABOARD AIR LINE
A
lapse of the company has
porary
offer
cou¬
in the road's fall from
faded iinto ;the
and
own
(TERMINAL
,
sues
or
action
was
favor
IIAnover
Teletype NY
of 1938 when
part of the management
ered by most people as
sarily
Bell
-
New York
LEHIGH VALLEY
busi¬
the Adjustment bonds
pon on
WILLIAM St., N. Y. 5
war
semi-annual
one
Transcontinental
Have You Host
railroad
52
$100,000
$1.50 is safe at
of the uncertainties
rent
not
We
that
cent, months
the present and post¬
ica to be on the alert and see what war prospects for 18 leading rail¬
road systems prepared by Ray¬
.this international organization is
.about;f•;■;( > v -; 7,: f;7"7* mond & Co., .148 State St., Boston,
1
"When we see how, on the home Mass.; Copies of this report may
4front, the planners have 'missed be had from.|he firm upon; re¬
ithe boat,' we must make sure now quest.
'
is
of
duration of the
HART SMITH & CO.
as
intervening
special factual and statistical
that America
shares
developments in
years
preclude
the likelihood of a later repetition
ness,
the
iHe said:, (7|
^((77'.''<7#"7
the
swollen
shadowed
77"It will be well for all Amer¬
view
rate
least for the
| concern for the American people;
.
still
-
—
considered that the recent
dividend
reorganization bonds, offers" inter*,
esting possibilities according to a
grave
5i/2s, 1957
broad buying in¬
any
Despite4>
substantialrecovery,
quent slow recovery of confi¬
dence.; : .In fact Hi is only in re¬
:
find
possessing attraction; for further
price enhancement and for liberal
yield,
v 7:
• 7
v
■ *
vestment
The post-war^ outlook for' rail
.
Warned, there is- matter of
;-
difficult to
was
prices under 20.
very I
,
crisis by administration bungling,
at least some of which he called
Steep Rock Iron Mines Ltd.
strong spots in the railroad stock
group has been' Atchison, :Topeka & Santa Fe common, hitting new
highs consistently regardless of intermittent periods of uncertainty
in the general list.
The recent price above 61 is a far cry from the
experience .6t thd'Stock a few years ago when British holdings were?
rail
■
6s, 1949
Bell Teletype—NY 1-310
One of the most consistently
Wall Street,
World Food Planners
( almost
New York 6
4s, 1961
LovelS And Perdusi
an
Canadian Internat'I Paper
Exchange
.
Railroad Securities
Warns
Why
brought- to
■
Shawinigan Water & Power
U. S. To is Captious Of
Nations
^
York
Chicago
L M, SWarks Mm\k 77
United
Stock
];
7w7?•:7V7.7'
^
^
Telephone—DIgby 4-4933
Exchange
Produce Exchange
Board of Trade
Chicago Mercantile Exchange
^Commodity Exchange, Inc.
Winnipeg Grain Exchange
New
30 BROAD ST., NEW YORK 4
Senator
Broadway
York
New
New York Mercantile
Chicago Stock Exchange
Philadelphia Stock Exchange
Pittsburgh Stock Exchange
St. Louis Stock Exch. (Assoc.)
Salt Lake City Stock Exchange
HAnover 2-6540
61
New York
New
4V2s, 1967
pflugfelder, bampton & rust
NEWBORG 6- CO.
'
*
specialists in raile
*120 broadway
COrtlandt 7-0136
co.
n. y. c.
Adams & Peck
'
;
'63 Wall
5
Tele. NY 1-1293
Street, New York 5t
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
FINANCIAL CHRONICLE
THE COMMERCIAL &
206
Thursday, July 15, 1943
Teletype KC 472
HArrison 6432
Trading Markets in
\
t
Alligator Co.
tONG-BELL LUMBER COMPANY
York
$2
Corp. Com.
i.
w.
INVESTMENT
Investment
League
Louis
St.
Fine
pfd.
cum.
;
PICKERING LUMBER CORPORATION
♦Berkshire
BERNHEIMER CO.
Teletype—-SL 486
Liq.
Co. (St. L.)
Spinning
A}
&
Nat'l
Bank
(St. L.)
Hotel
Chase
Inc.
(E.
Chicago
(UTC)
option
com.
Coal
Franklin
♦Chi.,. Wilmington &
com.
'
;V'-'"v;-;
♦Consolidated 'Dearborn, Inc.
.
quoted.. 1-6-17$$;
com.
St. L., 111.)
(St. L.)
♦Chicago & Southern Air Lines
L. D. 240
com.
Castlereagh Corp. Com.
INCORPORATED
St. Louis
$5
Assoc.
Assoc.
Albany R. R.'
Broadview Hotel Co.
STIFEL, NICOLAUS&CO.
ST. LOUIS 2, MO.
Kansas City, Mo.
Ave.
1016 Baltimore
Inc.
Landreth Bldg.
of
Co.
"
•
Fine Spinning
Boatmen's
♦Boston
BflUM.
4
com.
of Commerce
Bank
♦Berkshire
1890-1943
.
803
Illinois
Baseball
Anheuser-Busch, Inc.
BANKING
Peitason Jenenbaum,
of
Co.
pfd.
cum.
,
Boughi~Sold----Quoted
COMPANY
WESTERN LIGHT & TELEPHONE
Co.'com. «.<>/
American
,•
i
(A. S3.
American
CORPORATION
GLEANER HARVESTER
}:H • V-'
com.
Aloe
Fifty-Three Years
Y'*
v.' f-
|g
g York- Ice Pfd.
,
,,
Cons.
warrants
Retail
Inc.
Stores,
8%
cum.
pfd.
have
Missouri Brevities
continuing interest in
a
First National Bank of St. Louis
of importance
Employers Reinsur. Corp.
have been sold and little increase.in activity is
ex¬
E. W. PRICE & CO.
term
DEPARTMENTS
the
with
ARE
Regular
to
of
August
Quigg
Avenue
tanta¬
Chicago office ef¬
1. A graduate
of
University,
the
Mr.
depart¬
bond
the
,
Long Distance 93
602 INSURANCE BLDG.,
is
Mississippi Valley
Trust in the Chicago office 21
years ago, later moving to Kan¬
sas City.
In 1924 he entered the
CITY, MO.
KANSAS
Teletype KC 273-4
joined
ment
Sleffi Brothers & Co.
Baltimore
Nomination
Ticket
Northwestern
municipal
buying
department
in
St. Louis and since then has held
OMAHA, NEB.
various
positions until his ap¬
pointment as manager of the bond
department
in
1936.
He
has
been
in all
and accurate Markets
Fast
active
very
served
SECURITIES
ent is
in
and Providence
Offices
be
McQuay
Stock
capacity
1927, and at
His work with
holders
pres¬
Paine;
•
Considerable
Other Principal Exchanges
503
Locust
shown
Street
interest
the
is
being
announcement
by
Kansas City press that the
Long-Bell Lumber Company will
shortly
Tel. Central 0838
replace
common
all
stock,
certificates
its
$50
par
represented
of
by
interest,
through
issuance
of
$5.00 par
capital
stock, resulting in a 10 for 1 splitup.
This will eliminate frac¬
tional
the
a
will
increase
of
stock
to
trol
SAINT LOUIS
the
on
509 OLIVE ST.
System
and
supply
million
shares, the con¬
being held by the Maryland
Corporation, whose stock is listed
^7/U CO.
Sell
interests
floating
about
change.
Teletype—SL 80
New
The
York
Stock
company
Ex¬
under
has done
of
March
stock' in
common
$4.74 per share in 1941.
The ."re¬
port stated that although pre¬
liminary conversations had been
with the
held
Board
Price
Adjustment
had been
conclusions
no
reached, but that readjustment of
was not expected to be
necessary., The company has re¬
cently been notified by Wash¬
While the bulk of Missouri
contracts covering
are
still
be
to
war
1942 operations
renogotiated,
an¬
Peitason,
Tenenbaum,
Inc., nouncement regarding the results
Landreth Building, St. Louis, Mo; of two such
programs are of parhave prepared recent analyses on Ucular interest -to Missouri dealers.
York Ice preferred and York Cor¬
Curtis Manufacturing Company,
poration common w. i., which they under date of Jan. 22, 1943, ad¬
•
»
helieve offer
ties.
may
interesting possibili¬
Copies
of
these
circulars
be had from the firm
upon
to
KANSAS
G.
The
CITY,
Mader has
with
pany,
B.
C.
Financial
Chronicle)
MO.—Edward
become
associated
Christopher &
Com¬
Board of Trade Building,
•
of
the
reserve
for
post-war
contin¬
gencies, earnings in the fiscal
year ended Nov. 30, 1942, were
$484,397, equal to $2.50 per share
common
firm
stock.
renegotiation
company
has
Liquidating
Airfield,
These
illustrate. the dif-
cases
.
fieulty of appraising stock val¬
of companies holding large
ues
f
contracts until renegotia¬
tion has been completed, which
war
in all probability will be many
months after the reports have
A speeding
released.
been
up
would be wel¬
comed by the corporations con¬
cerned, investment dealers and
the
of
process
their clients.
dominate
Louis,
in
.
.
continues
Candy
National
with a further wide gain
price to
Rumors
a
link
recent high of,30,%'.
the
F.
William
Rothwell,
who has
I
the
Clinton
Louis Publ. Service
♦St.
informed
indicate
Candy received a
sources
.
cum.' 1st
cum.
that
pro¬
pending
Mixter & Company
and
believe
Chicago
that
Southern occupies a
sition
both
sition
as
of
view.
from
well
as
Among
and
strategic po¬
a
domestic
a
foreign point
the
many
po?
ap¬
The
report
set
....
up
no
your
reserve
between
Chicago
and
Singapore.
Common and common v. t. c. are
pfd.
cum.
conv.
(St. L.)
com.
Co.
com.
Engineering Co.
com.
Seven-Up Bottling Co.
Southwestern
♦Steel
Pub.
Products
Coke
&
Service
Coal
Co.
*XJ. s: Print & Lithog. $3
*
—
Inc.
com.
cum.
pfd.
request
Description on
BOUGHT
SOLD
Scherck, Richter
Is
St. Louis 2*
Formed In Boston
BOSTON, MASS.* — Announce¬
ment is made of the formation of
Company,
&
Mixter
members of
New. York and Boston
the
Stock
Exchanges.
The new firm, suc¬
cessors to Chandler Hovey & Co.,
offices at 82
Devonshire Street, Boston, where
the predecessor firm was located.
Samuel Mixter, George H. Ly¬
man, Jr., C. Terry
Collens and
Wellington Wells, Jr. are the part¬
will occupy the same
Mo.
Garfield 0225
Teletype
L.
SL 456
D.
123
Puget Sound Power & Lt.
Interesting Speculation
Puget
Power
Sound
&
Light
Company offers interesting specu¬
possibilities under the Re¬
lative
capitalization Plan, which is ex¬
pected to be operative on Sept. 13,
1943, according to a detailed study
prepared by H. L. Federman of
Ira Haupt & Co., Ill Broadway,ners
in the new firm.
Messrs. New York
City, members of the
Mixter, Collens and Wells were New York Stock Exchange and
former
partners
in
Chandler other leading exchanges. Copies
Hovey & Co. Mr. Lyman, the new of this interesting circular may be
partner in the firm, has been in had from Ira Haupt & Co. upoii
the investment business in Boston
request, v
' . ]'
*
24 years.
Messrs. Col¬
serving
States Navy.
Mr.
memberships in the
New York and Boston Stock Ex¬
Attractive Situations
the ,United
in
Blair
Mixter holds
pany
was
previously reported in
the "Financial
Air Lines,
Inc.,
common, " c o m m o n
v.t.c.
and option, warrants have moved
up sharply on increased trading
activity.
Missouri dealers famil¬
iar with the progress of the com?
pany since formation, are optimis¬
tic regarding the post-war
out¬
look for expansion of air traffic
3%%
Barney
company
Chronicle" of July
.
Chicago and Southern
Vandervoort
pfd.
Sedalia Water Co. pfd.
SeVen-Up Bottling Co. (St. L.) 5% %
Landreth Bldg.,
posal for the subsidiary company's changes and is an associate mem¬
ber of the New York Curb Ex¬
some time ago but that the
offer was rejected as unsatisfac¬ change.
Formation of Mixter & Com¬
tory. Company officials have de¬
nied the existence of any
6%
Barney
pfd.
Scruggs
:y
Company.
Insurance
lins "arid Wells are now
-
$quip. Corp.
Class A
Vandervoort
Scruggs
cago;
for. over
Usually well?
products division.
"A"
;
,St. Louis Bank Bldg. &
the Bond Department of the Har¬
Trust. & Savings Bank, Chi¬
corn
Company,
;
com.
Rada Pump Co. com.
,
ris
will be identified after
August 1 with the investment de¬
partment of the Bruce Dodson
Barge
Panhandle Eastern Pipeline Co.
*
with
been associated for 25 years
and
deal
company
General Foods in a possible.
for
to
trading .activity in St.
Co.
Valley Trust Co.
Stonega
Maxton, North Carolina.
Trust
Bank &
Valley
♦National Oats Co.
is
8th.
/
Interesting Situations
Scherck, / Richter;
Company,
Landreth Building, St. Louis, Mo.,
have
interesting
prepared
des¬
criptive circulars on Berkshire
Fine Spinning Association, Bos¬
ton
&
Albany
Railroad, Chicago
Lines, Chicago,
Wall
'
F.
Claybaugh & Co., 72
New • York City,'
Street;
the
Philadelphia
Exchange/ have prepared
interesting circulars on Ft. Dodge/
Des Moines & Southern Railway
(4s of 1991 and common), Utica
& Mohawk Valley Railway (4V2S
of 1941), and Consolidated Deafborn (common), which the firm
believes offer attractive possibil¬
ities at current levels.
Copies of
these •circulars may be had upon
request from Blair F. Claybaugh
of
members
Stock
&
Co.
'.
V
'
N. Y. Title and
Mtge.
and Southern Air
Wilmington
&
Franklin Coal,
Consolidated Dearborn, Inc., Kan¬
41
Ctfs/
Series C-2 Interesting
sas
"City
Public
Service, Lowell
Bleachery, Marathon Paper
National Oats Co., St. Louis
Mills,
Pub¬
lic Service, Steel Products Engij neering Co. and U. S. Print &
imagina¬
view of the impossibility of mak¬ one which kindles the
j Lithograph. Copies of the circution of the post-war picture is the
ing even an approximate esti¬
j lars on these issues, which the
mate of the effect, if any, of con¬ proposed Trans-Alaskan air route Jfirm feels offer attractive possi¬
tract
Commerce
Missouri Kansas Pipe Line
England.
same
Laurinburg-Maxton
at
ington that- its last year's profits
are not
subject to any refund.
plications which the Company has
to
the
Civil 1 Aeronautics
stated that the earnings were sub¬ made
ject to renegotiation but that "in Board for additional routes, the
Christopher
(Special
thaf after pro¬
setting up
vision for all taxes and
of
Mader With
B. C.
vised stockholders
j a
request.
in
stock
has completely retired $20,•158,800 of preferred stock.
Situation Looks Good
landed
pfd.
Mid-Continent Airlines
Washington, D.
Lieutenant Donald D.
while
Belcher
.the
-
deal.;/#;:;/;//^
J
Mercantile
Service System at
C.,
12,
ended Dec. 31, 1942, as .com¬
pared I with $541,81,7,
equal. to
National
tion
Louis Stock Exchange
Manufacturing
date
com.
$3.50
Mississippi
Major W. W. Holloway is at the
national headquarters of Selective
year
paid off $4,500,000 owed to banks,
and through purchase or redemp¬
St.
Puree!!,. has
per
amounting,
as.
remarkable job since emerging
from bankruptcy in 1935, having
a
Members
$1.00
reported to stock¬
were
share: of
,
the
ST. LOUIS 1, MISSOURI
Teletype SL 84
in
or
Serv.
Mississippi
after taxes,
etc., to $610,437, equal to $5.34 per
1943,
co-ordinating municipal bond
among the company's mid-
western offices.
and
Exchange
Norris
-
Company
Members
York
New
$192,748,
Publ.
♦Marathon Paper Mills
KANSAS CITY PERSONALS
In contrast, the earnings uf the
sales
G. H. Walker & Co.
to
Erty
Mercantile
share/
V/ebber, Jackson and Curtis will
Direct Private Wire to
York
Invest¬
member of the Board of
Governors.
New
the
official
some
each year since
a
♦Kansas
■
Public Service
♦Lowell Bleachery,
Association, having earnings
ment Bankers
ST. LOUIS
in
Johnson Automatics
tions the company
Paine, Webber, Jackson and
fective
CORPORATE SECURITIES
100!)
Asso¬
election.
Curtis in their
LOCAL
AND
MUNICIPAL
of Governors
America.
Interstate Aircraft & Engineering
♦Kansas City
&
Valley
Trust
Company,
St.
Louis,
will become
associated
INVESTMENT SECURITIES
IN
ers
pfd.
Independent Realty & Investment
with
pi
UNDERWRITERS ; DISTRIBUTORS
TRADING
1942
duced
of
mount
ACTIVE
of
James F. Quiff g, manager,of the
bond department of the Mississip¬
of
OUR
half
com.
Fulton Iron Works
predominating. Prices
steady to a little higher. Deal¬
report a good retail interest.
are
Vice-^v
:
Com¬ against this specific contingency."
three-year Upon \ conclusion of renegotia¬
a
first
of
the
Several
Kansas
recently issued
City
a
"revised'.'
statement
showing bond firms have been badly hit
that the Price Adjustment Board
by. the war: Soden & Company
had determined that $1,053,000 have; announced that they have
(before deduction of income .and closed for the duration due to
excess profits taxes) must be re¬
loss of personnel.
Word has been
funded.
After giving
effect to received
that
Lieutenant
Hoyt
these changes, earnings werexre¬ Purcell, of Martin, Holloway &
on
ciation
Teletype KC 375
Bell
for
the Board
the
Properties Units
Fulton Iron Works
issued
small gains
Dickie,
of the Investment Bankers
MO.
CITY,
KANSAS
A.
Whitaker
St. Louis,
pany,
Avenue
Baltimore
1004
Roy
of
in
as
TheExecutive Committee of the Mississippi Valley Group has
President
downtown
statements
of... June, 30, with the figures
as, of December 31, 1942, reveals
•that earnings are about the, same
Ore.-Amer. Lumber Corp.
nominated
of the
Louis Bank
us
pected over the near term.
While trading volume has been small,
transactions have; been at increasingly higher prices.
Corp.
Gleaner Harvester
St.
The past several weeks have witnessed one of the dullest pe¬
riods in municipal financing in Missouri for many years.
No issues
Dickey Clay Mfg. Co.
W. S.
St. Louis
Fox
Comparison
Central Coal & Coke Corp.
bilities
L
o
/I
at present
IvAtvi
fh AW)
levels, may be
Seligman, Lubetkin & Co., Inc./
Broad
Street, New York City,
have
prepared
series
C-2
cates
<;
an y
analysis
originally issued and
anteed
by
New
guar¬
York: Title
Copies of this analysis
from
Seligman,
Co. upon request.
&
V
Mortgage Co.
had
of
first mortgage certifi¬
may
Lubetkin
be
&
.
'
.Volume
Number 4194
158
THE COMMERCIAL & FINANCIAL CHRONICLE
•
-
Municipal News And a Congress Adjourns y >
Until September 14
Notes
(Continued from page 218)
:
of
the
Commission.
Cash
/Congress
Sept.
V
Michigan Brevities
Detroit's bank deposits passed the two billion mark for the first
time in the city's history, reflecting the tremendous
job being done
by war industries here.1
«
i
v
-.
adjourned on July 8
14—this representing
until
has
■
already been deposited with the
fiscal
-
to meet the maturity and semi¬
annual
interest
September 1,
mission
has
Com-
The
floating
first
,
Offered
called
recess
at
the
general refinancing of the
city's outstanding funded debt of
approximately $231,000,000, it was
announced July 9 by J. O. Asselin,
Chairman
of
relatively
a
of
amount
has
debt
Ex¬
total
large
which
in
for
the
sideration
whole
of the city's debt.
proposals
the
a
Com¬
30-day
guarantee that the. city would ac¬
cept no plan until the firm's pro¬
The
according
company,
in which you
gains
a
upon
one-third*;of
debt
outstanding
United
the
bank
States funds,
more
Bank
six
k
held
the
by
the American
Power & Light Co., according to
a report in the New York "Jour¬
company,
nal of Commerce" of
July 12. The
bill
authorizing the city to take
over
the utility properties was
signed by Governor Dwight Grison
May 29.
However, it
wold
approved by the Legislature
by less than a two-thirds major-,
ity, and* for this reason a waiting
period of 90 days was necessary
under
laws before
Nebraska
could
measure
the
effective.
A
be
bill specifically
provision in the
the
trict
of
utility
quire.
(gas and water)
Omaha
over
f
Dis-
Utilities
Metropolitan
take
of
the present authority
removes
and operate any elec¬
the
city
in
the
ex¬
braska Power Company, virtually
of the outstanding common
is
pre¬
holders
Federal
who
six
•
ration
might
ac¬
■
Detroit
months'
:
The current situation in
•
Stand¬
Corporation offers in¬
teresting possibilities, according to
a
issued by Faroll
memorandum
Brothers,
Street,
206
South
La
for
The
York
Stock
YY-
❖
the
,
half
-
.
was
subsidiary,
of Detroit Stock Exchange
INVESTMENT
SECURITIES
an¬
639 Penobscot
Building
DETROIT, MICH.
Great
Telephone
Private Wires
Randolph 5625
To All Markets
.
corporation will have
capital
of $5,000,jointly owned by
Corporation
of
Iron
construction at the
ration.
National
same
corpo¬
Sloetzer, Garr Go.
DETROIT,
Carr
&
MICH.
Co.
has
formation of
2056
a
& Dolphyn
and
v
[-Members Detroit Stock Exchange
Buhl Bldg.
the
Cadillac 5752
'
DETROIT
.
partnership at
to deal
Building
unlisted
membership
on
Stock Exchange.
securities
the Detroit
y:
The general partners, Robert R.
Stoetzer and Howard F. Carr and
.
Request \,r
Mefcier, McDowell
Stoetzer,
—
announced
new
Penobscot
a
on
|
Formed In Detroit
a
Latest Information
location,
new
Stamping Co.
Common
Y
in .listed
share.
M
distillation in
ovens
have been sold to the
.
a
the
Chicago tar distilla¬
plant has been in operation
for three years and its tar acid
and naphthalene plant, now under
with
$16.27
for
chemicals
tion
$489,379 or
a"f. share.
Earnings in the
previous full year were $849,285
or
Interlake
V -Interlake's
year
$9.78
had been insufficient to
its
authorized
980,058. and. earned
and
the
Chicago and the Great Lakes Steel
Corporation of Detroit.
the
$19,000,000 /increase . in deposits
during the six months to $138,-
in
of
coke
new
Interlake
bank's
The Commonwealth Bank had
the
court
that
assuming
" defendants
would
-
Y:
not
Despite
this
improvement
bank
earnings,
these
institutions
little
improvement
r
faithfully account for all money$
paid for such purposes. The order
in t
the/! stocks
of
>
the
in
Michigan Municipal
their
associates,
C.
S.
Dorst,
George L. Faulkner, Russell D.
Hudson, Jerome E. J. Keane, and
Percy P. Newman,^were all af¬
■
shown
have
last
had been
Bonds
sought by the SEC as a
f 30 days. The National Bank of
preliminary to a • complaint in¬
Detroit is quoted 36*4-36%, only / filiated with Keane and
Co., which
stituted by the Commission charge
a fraction higher in four weeks.
was dissolved
June 30; Helen L.
ing "gross misconduct and gross ; The Manufacturers National is: Faulkner, Seward N. Lawson, E.
abuse of trust" in the sale of se¬ v 135-145
with little or no stock
H. Fletcher, and W. C. Martin are
curities and certificates to invesavailable.; Death of Edsel Ford,
special partners in the firm.
tors over a period of fifteen years. i
largest single stockholder, had
Robert R. Stoetzer will be in
Edward H. Cashion, SEC attorney,
declared that the denial would not
stop continuance of the action."
;
f
,
E.
-virtually
E.
and
Crabb, President of In¬
vestors Syndicate made the fol¬
lowing statement: v ;
is
rat
for
the
120-125
the
in
all
respects to
business
carry
on
certificate
the
Well
*
.The
'..p>
'■
was
their
filed
company
registra¬
a
tion statement with the SEC
cov¬
ering $1,245,600 of 4% debentures
dated July 1, 1943, to be offered
only to prior preference : stock¬
Penobscot
Detroit,
the
here, Mr. Stoetzer's
also
years
Teletype DE. 475
shown by our
v; A
holders
a
ex¬
period
West Penn Public
Virginia,
writers
in
District
Sales
Service
King-Sseley Corp'n, Com.
Refineries, Inc., Com.
Federal Screw Works, Com.
Vinco Corporation, Com.
Graham-Paige Motors
Leonard
Co. in
also/.with Under¬
New
York
and
later
Manager .of Hearst
Consolidated Publications, Inc., in
charge of the sale of Hearst "A"
stock in
R.C.O'Donnell & Company
Michigan.
Members
similar
statement
filed
'was
covering $996,500 in 5Vz% sinking
debentures', dated vMay
1,
1933, and due May 1, 1946, as ex¬
RAndolph 3262
of
with New York Stock Ex¬
covers
change houses. Mr. Carr was for¬
merly Manager of the investment
Department of the Monongahela
West
Building
Michigan
securities
holders.-
during
the
progress of this suit has been excedingly gratifying."
Detroit
Stock
INVESTMENT
Detroit Tax Collections
Exchange
SECURITIES
625 Penobscot
Reach All Time Peak
fund
Building
DETROIT
As of the end of the fiscal year,
Y
CHERRY 7040
>
and modified to Oct. 31,
June 30, 1943, the City Treasurer
1952/ under a plan of debenture
adjustment and agreement dated of Detroit, Mich., reports the cur¬
Five Selected Portfolios
Putnam & Co., 6 Central Row,
April 1, 1933.
'
Hartford, Conn.,, members of the
Under the plan,
New York Stock Exchange, have i
will
five selected ? portfolios-
prepared
in
business
reported
figures.
news
known
perience
with: sales
latter
gain
Bank
the capital
plan of Crow¬
ley, Milner & Company, one of the
large Detroit department stores.
v'v'n
confidence
In
.
ing all obligations promptly when
"The
fractional
a
charge of the Trading Department
George L. Faulkner will man¬
age the Bond Department.
-
Miller, Kenower
& Company
and
quoted
stock readjustment
usual, keping intact a
record of nearly 50 years of meet¬
/
is
:<s
as
due.
the price.
on
Bank
Commonwealth
"The decision by
Judge Nordbye
againstthe Securities and : Ex¬
change Commission in its suit for
a
restraining order against ? our
company is naturally gratifying to
us.
The companies will proceed
effect
no
The. Detroit
67-68%
-
share
Salle representative of America's five
Chicago, 111., members of
the 'New
Charles A. Parcells & Co.
f Members
sit
000 and will be
deposits
of June 30, a
period.
for
an
National
.
Silica
al¬
not
was
Steel.
The
showed
tended
Situation Interesting;
ard
amount
processing
and
Lakes
to
was
measures
purchase
by
George
R.
Fink,
President of National Steel Corpo¬
months
would compare with $9.17 a share
earned in the previous full year.
in -Minf
Court
said
NEW YORK
RFC
.
all
which
certificate
for
Corporation
of
by-product
$44/.
000,000 to $356,127,395 and earn¬
ings during that period amounted
to $532,000 or $4.69 a share. This
tem¬
Syndicate, Invest¬
Mutual, Inc., and Investors
Syndicate of America from mak¬
ing cash surrender and loan pay¬
to
the
nounced
The Detroit Bank reported a six
month increase in deposits.of
Investors
moreover
pected to act soon toward Ac¬
quiring properties
of the Ne¬
of
first
Manufacturers
of
vious year.
a
DETROIT
public.
purpose
$494,805 or $8.23 a
share as compared with $674,991
or $11.25 a share in the entire
pre¬
to
Members of Detroit Stock
Exchange
com¬
equipment,
recovered from the
$1,520,294,
earnings
ors
warrant
Acquire Utility Soon
parent
to
amounted
order
justify such drastic
\J The City of Omaha, Neb., is
stock
the
-
of* $392,631,358, as
of over 63 millions
his ruling
that the showing did not seem to
Expected To
in
■
The
one
Enjoin
Syndicate
restraining
allow
the
Chemical
passing
share 'for " the entire year of 1942.
there
A motion by the Securities and
bye
-
$1,028,809,000,
equal to
$1.52 a share. This compares with
earnings of $2,762,376 or $2.76 a
SEC Motion To
neapolis,
city offi¬
of
amounted
faithful
more
time
Incorporation
year previously, the total was
only $773,000,000. Earnings, of the
addressed
can say
to
v
A
serve.'"
Investors
made
f;
(
Fihst of Michigan Corporation
This
$45,000,000.
same
additional
though
good
also.
respect
to
the
creased
of
its June 30 statement reported de¬
denied by Judge Gunnar H. Nord-
in
this
in¬
commit¬
-The National Bank of Detroit in
Federal Coisrt Denies
ments
the
is callable
cials pointed outl
Omaha
r
3%% and not to in¬
budget-control bu-
About
reau.
in
shown
had
contract
subsidiary
revealed
that
the
Chrysler contract was also in¬
serv¬
in
'After
a
have
gain
vent
agreed
lower than
sist
tric
been
never
At
cases
its
mitment
,
the billion mark for the first time.
Rayburn
here, !
s
and
most
Corpora¬
it
Company by $16,500,000.
brings the total > overall
issuing of thousands of
war
bonds, the Detroit banks have
managed to maintain earnings and
in
that
ment to the Packard Motor Car
and f
diver-
manpower
announced
>•
»
sessions
bitterest
holiday,' he said.
porary
to
to - provide for
the
refinancing
of; the ; city's
debt at an average interest rate
t report,
to
the
draft
Plants
creased
as
Exchange Commission for
posal had been studied.
was
of
by
*
•/
r
period
pre-recess
granting
in
outlined
investment f house
the
'
and
tion
with
Despite the most of extra
'V
ices
posits
has
antici¬
Executive
the
of
had
mittee
:
Administration
the
hit
war;
Municipals
statement
filed.
The Defense
!
:'■ y.
sions.
to
member
-0
Price
hard
/other
'<; /'
"The subsidy fight and struggles
over appropriations for the Office
Congress assembled than the
are
staffs
transactions
registration
-
/'.
increases in
are
'job
financial
President
a
also
was
doing a tremendous
handling
vastly
swollen
■
than 30 years
Co. is reported to have
specifications which a
ley; &
by
the sensational
banks
two-month
,
which
millions^ of
upon
':} bank deposits and also that the
be
iq Associated Press
from Washington July
8 that:
a
pated from other sources, it was
said, although the plan by Mose¬
held
could
the House before, the final gavel.
"
'I'm glad you're going to have
Executive Committee,
f Similar
for
6:33
noted
was
"Speaker
Details of the
by
time
any
accounts
con¬
picture"
study
further
It
one
public until it had been
given
its
at
.
Michigan
question but that
no
millions
dollars expended for war mate¬
rials are primarily responsible
,
years.
proposal, he said, would not be
made
There is
the
marked
The plan covers
Asselin, "it takes into full
the
Office of War Administration had
and, according to Mr.
pages
has
Roosevelt, by the President of the
Senate and the: Speaker of the
House, or by joint action of the
majority or minority leaders if in
their
opinion, legislative exped¬
iency should warrant it.
y
of
the
default
on
been
several years.
15
Municipal
above-mentioned
includes
city
the
Committee.;
The
from
back
F. S. Moseley & Co., New York
City, have submitted a plan to
the City of Montreal,
Quebec, for
effect
Congress
Refunding
'?
ecutive
into
went
New York Bankers
Plan By
it
of
recess
outbreak
,
EWT.
p.m.
Montreal
the
September 1939.
v
,
; The
adjournment
resolution,
adopted by the Senate and the
House
debt.
extended
since
in
war
due
payment
1943.
no
the
taken
agent of the Commission
207
offer ;
'
?
the
company
in exchange
for each
/ of > prior
preference
and / accumulated
stock
unpaid , divi¬
dends, $40 of the 4% debentures
and* $10 cash. There are $31,140
major fields of business, covering
Exchange
;
rent tax collection of 96.97% is an
all-time peak,
the previous record
having been' made in 1923 when
96.31%
was
lections
95.07%.
.
*'•
It is also
enterprises f which ' can
announced -that
the -$4,600,000
convert
and
other
principal exchanges. quickly to peacetime pursuits with ;shar'es of the stock how outstand-? carry-over deficit has been en¬
ing. :
U
&,
Favorable
points,
the company little or no delay and which are
The debenture adjustment and tirely eliminated. Four years ago
feels, are the fact that it is an ex¬ at present engaged in activities es¬ deposit agreement calls:-for the this amounted to $14,000,000. For
cellent inflation hedge and has a sential to the nation.
Copies of a deposit of debentures by those the first time in a decade it was
*
r-V",
Contact
collected, 1941-42 col¬
were
Dealers...
>•
us
•
'
for
,
*,V-v;•'
''•
up-to-date
Information and markets
Michigan securities.
on
„
very
or
small post-war change over
renegotiation.
memorandum may
most
who
to go along with the
plan, at either the Detroit Trust
interesting circular describ¬
Copies of this
ing these five portfolios in detail
be had by in¬
may
be had from the firm
upon
dealers upon
request.
'
request.
"
•
'/
-
Company or the Bankers
New, York and accept
of
'
terested
agree
<?eipt
certificates
of
Trust
not
necessary
any
Members
short term borrowing prior to
as
re-
collection of
deposit
for
summer.
for the city to do
new
Wm. C. Roney & Co.
Members
812
taxes during the
•
Buhl
Detroit
Stock
Exchange
Chicago Board of Trade
Bldg.
Teletype DE 167
Detroit
THE COMMERCIAL
208
We
Connecticut Stocks & Bonds
high
a
For information
or
markets, phone
write DEPT.
or
United Illuminating Co.
and
ge||
INCORPORATED
Established 1868
;
'
-
few
years, there has been little said
that, to my way of thinking, analyzes the
problem so
announced
municipal
Connecticut
bond market
probably
is
at
now
level—with a minimum of offerings in the market.
Near the close of the first half of this year, a small block of State of
Connecticut 1%%' bonds due in 1967 were sold on a 1% basis, the
highest price on record in this country for a tax-exempt security of
this maturity.
So far this year, new financing totals $620,000, and
additional issue in pros- *5
the only
pect is a $100,000 issue of the City
of New Britain sewer bonds which
probably be offered for sale
will
soon.
Dividend
payments made by
during
Connctieut-concerns
six
first
the
of
months
1943
$19,550,316
about
totalled
■
was
gun
the
and washer plants, which
presented one of the'most dif¬
ficult conversion problems. While
Landers is now primarily engaged
in government work turning out
countless items varying in cost
range
had
•
49
mount
$20,565,204 paid in the
period in 1942.
against
from ten cents to several thousand
dollars, the company's research
Bank and insurance dividends ; department is engaged in inten¬
sive planning
for the post-war
continued at the same rate, de- §
recorded
being
industrial
and
Principal
reductions
in
utility
amounts paid by
the
era.
*
in
were
Judd, Peck Stow & Wilcox and
On June 14, the
proved
and!
Telephone
England.
the utility
now
three
the
Inc.
Boat - Company
>
is
hours a day,
has recently
submarine
ninth
its
-
of Hartford,
operating_24
shifts, and
launched
category.
liquidate
in
17 weeks.
Marion, Ohio; Ogden, Utah; Peabody, Mass.; Peoria, 111.';- Rockford,
111.; Springfield, Ohio;" Steubenville, Ohio; Wilmington, Dela-.
ware; Zanesville, Ohio.
Other- withdrawals include:
:
Bement & Pond and Greenwich
j Water, Pfd. ;
*
After conferences • with
eral
prices, the
turing
market, value, of
locally
traded issues is the highest since
lowed
.
Six fire insur¬
September 1941.
have
stocks
ance
since
advanced
while
14%
754,090
the
for
^.insurance companies have gained
which
the past
same
period.
During
month, there has been
no
cents
a
year.
^Insurance
Fire
This
repre¬
$2
than
more
compares
a
14
with
'
share for the
drastic change in the local market.
Hartford
ended
year
December 31, 1942.
slightly
$37% in the
six
profit equal to 10.6C% of
total sales which aggregated $2,-
share
ago,
al¬
been
a
sents
year
has
Company
life
a
*
was
The
#
preceding
#
Company has
among'those showing the greatest fiied an application with the Se¬
■advance.
curities and Exchange Commission
Landers, Frary & Clark presents
outstanding example of
switching to wartime production.
?
The
manufacturers
of
household
f electrical appliances faced a more
drastic conversion problem than
any other type of industry.
>
■
In
before curtail¬
actually issued,
first preparations for war produc¬
1940,
even
ment orders
were
tion were made when the company
opened
a
Washington office to
se¬
cure
government orders for prod¬
ucts
to
supplement their
normal
line.
Owing to the widely diver¬
sified nature of the plant's equip¬
ment, no one type of government
work could utilize all their facili¬
ties, thus necessitating the obtain¬
ing of contracts for a variety of
products. Tremendous tooling and
engineering
tasks
delayed
the
but
program,
contracts
gradually taken
on.
after the addition of
stamped
due
first
July
Company,-
&
Un¬
consolidated
from
its
listing
and
stock
common
registration
on
to suppose that the same
pattern will not be repeated dur¬
ing and following this war.
reason
The maintenance of; a strong
liquid working capital position in
the period ahead, upon which Dr.
Wright
insists, cannot, in
opinion; be overemphasized.
W.
♦
American
*, .♦
Hardware
Corp.
New Britain has elected five
of
new
directors:
Richard L. White, President of
Landers, Frary & Clark; Morti¬
II.
mer
Camp,
Attorney;
President
Lucas,
of
Noah
Bank of New Britain; Joseph O.
Andrews,
Vice-President
in
charge of purchasing; and Harry
I.
and
Vice-President
Lewis,
General
£
-
>•
Connecticut Industries
of
thought,
which is about
it
all
is
;
tended
No
in¬
to
be.
in a "j
article,
one,
brief
all
cover
ntingencies
and,
as
always,
the :
c o
manager
the
o
f
business
must : k n o w.
his job and if
gifted
sound,
i t h
w
-
j.udg-- 4
w;p..Lough'
,
:
through.* .' *
come
HENRY BRUERE
C. ^ President, \ThecBowery; Savings
Connecticut
Royal
M.
Bassett,
General
Manager Corbin Cabinet Lock
division has been elected VicePresident;
and
repeatedly
panies -have
Elmer
G.
E.
participate
fully in general", industrial activ¬
ity? whether generated by war re¬
quirements or > peacetime needs,
according to a booklet which sur¬
veys nine Connecticut industrial
following
v
,
"quite
■»
-
nine
the
of
changes
in
the
showing their activities, resource¬
fulness and adaptability, post-war
prospects and other facts of sig¬
nificance
to
investors
today.
Copies of this interesting booklet
be had from the firm upon
request.
:
■
•
may
Members New York Stock
&
Wright,
opinion
he
(Special
to
The Financial Chronicle)
ILL.—William
M.
road
in
general
se¬
Mr. Wadden
was
a
was
with Straus Securities Co,
of
.
5-2410
take
this inflation will
of .how
come
the
cannot
best
for
course
bank
a
ful
in
is to be exceedingly
to
amount of Government bonds.
least half of
resources
our
are
Government bonds of short
maturity between
four
the
In
years.
At
in
aver¬
three and
future
near
have our average
Government bonds
to
expect
down
in
the
the
Bell
operation
standpoint
In
that
any
of a bank
of preserv¬
we
can
depositors
in
event,
it
full
in
feel
money
could
out, but the thing I
uncertain
the
we
always pay off
much faster than they
is
.
Copyrighted by
Underwood
on
file
<v
Underwood
Henry Bruere A
future
reference
because
it
covers
the
subject, I think, extremely well.
Attractive Situation
Kansas
1936
according to
tributed by
&
Fort Scott 4s of
City,
offer interesting possibilities
a circular being dis¬
Pflugfelder, Bampton
Rust, 61 Broadway, New York
City; members of the New York
Stock Exchange.
Copies of this
interesting circular may be had
from the firm upon request.
,
Situation Looks Good
current
The
Pitts¬
Warehouse
&
Transfer first 5s of 1936 offers in¬
teresting possibilities, according to
a
memorandum issued by Hill,
Thompson & Co., Inc., 120 Broad¬
way,
New
York City.
this
memorandum
the firm
Copies of
be had
may
upon
request.
ever
am
about and interested in
stockholders'
money
or
Seaboard Reorganization
Plan Summarized
Tuyl & Abbe, 72 Wall St.,
City, have prepared a
the Draft Report
Van
New
York
condensation of
by Tazewell Taylor, special mas¬
ter, of the plan of reorganization
of Seaboard Air Line
Copies
mary
of
may
this
Do
you
think it would be
Railway Co.
interesting
sum¬
be had from Van Tuyl
Teletype HFD 464
equity.
in
situation
Terminal
burgh
be very
ing, if possible, the stockholders'
draw
.■
the'
on
from
to about three years.
Torrington Co.
the
falla-
certain
cies
its
credits, and keep in a
position all-the time, v lt
is true that we now own a large
age
J
care¬
Conn. Lt. & Pr.
Phone—Enterprise 1850
■'
ventiliation of
will
not
.do
this
and,
therefore, a bank is exposed. to
heavy risks and losses.
from
HAnover 2-5537
:
useful
a
nesses
about
Boston
Hartford:
to
least
Russell Mfg. Co.
7-3261
is
for
Scovill Mfg. Co.
New York Phone
;
Wright's
keep it
Landers
Hartford Phone
Dr.
flation. I shall
Am. Hardware
ST., HARTFORD, CONN.
impover¬
ishment.
subject of in-
interesting to
know what Dr. Wright would say
PEARL
of
any
scheme
"It
New Britain Mach.
Coburn & Middlebrook
or
seem
.strong
66
Bell Teletype NH 194
Telephones: New Haven 6-0171
as
guessing and
speculation and thoroughly pre¬
pare for it."
A great many busi¬
with offices at 209 South La Salle
engage
tion
other
safest
the
pursue
Street to
pol-
a
of. infla¬
to be best and
Wood
H.
It would
NEW HAVEN, CONN.
is
states:
would
Wadden, Jr. and Dayton H. Mudd
have formed Wadden & Company
Markets for Dealers in:
Exchange
Dr.
m y
foresee and no
one
else can.
The thing I am
thinking about is how can a bank
best meet it.
Of course, I realize
Chicago
Aetna Life
Co.
quote
; to.
about, I
in
gain by
icy
July 8 issue
evitable,and
Word
:
article in your
As to all the "ins" and "outs"
Wadden & Co. Formed
The
guess . is
a serious
that
-
money.
Chas. W. Scranton
,
companies
In
list of legal investments for Con-
My
while.
a
debt.
al
country could
no t
possibly
inflation is in¬
;
companies, prepared by Chas; W.
Scranton & Co., 209 Church St.,
New Haven, Conn., members of
the JNew York Stock Exchanged
The booklet gives thumb-nail
recently with Cruttenden & Co.
the past he was an officer of
Medway, Wadden & Williams and
*
has
;
b e e n in my
;mT?Td. constantly
for
demon¬
strated their ability to
curities business.
The
flation
com¬
Johnson has been elected Comp¬
*
an
ar-
tide, and the
subject of in¬
;;
-
industrial::
is
.
sure
and "
provocative
>
C; interesting
Write for this Booklet
6-7870
pre¬
is
-aa
Prospects Look Good;
CHICAGO,
SURVEY discusses the
adaptability and diversity of Con¬
Industry and gives statistical data together with brief descrip¬
tions of nine leading companies with substantial
war business and
favorable peacetime prospects.
CAnal
sane
WOOD
vf. This'
Corbin
of
Manager
THIS
York:
a
sentation
.
Screw division.
necticut
New
by Dr. Wright
is
-Bank^ New, York ;
>
I have read with interest the
1946.. Reading. Company gen-'
Of course I am in favor of pro¬
eral & Ref., Series A 4%s due article ' by Dr. • Ivan Wright en¬
January. 2, 1997, Gen. & ^ Ref. titled "Managing a Business For ceeding with the greatest scruple
Series. B4%s due Jan. 2, 1997, Stockholders Through the Vicis- ahd
integrity *: in the • post-war
and Philadelphia & Reading R. R;
* t;
situdes of In¬ hand I i n g
of our nation-:,
Imp., 4s due. April J,.1947. •
flation.'?,
"A SURVEY OF 9 SELECTED
CHURCH STREET,
,
1,
Savings
CONNECTICUT INDUSTRIAL STOCKS"
209
H.
Bank
Savings
article
■
Trust Company, Charlotte, N.
maturity
A,.-
The
Chairgnan of the Board, American
we
•■•'A
my
-
,,y
;
LOUGH
President,
foresight, will
5s
First & Con¬
solidated 4s of December 1; i960;
and Income: Series A-l 5js ? due Jiily
sketches
the Boston Stock Exchange.
were
machin¬
sequent
col¬
lapse in later years. I see no valid
1946;
1,
troller.
By late 1942,
new
Torrington
withdraw
to
another
Railroad
i
Staten Island
can
wars and sub¬
contract negotiators in
war
aggre¬
gate
:
Fed¬
Washington, the Gray Manufac¬
current
At
Sioux? City?
Iowa;
Chicago
Heights,
111.;
Wyandotte, Mich.; Oregon Short
mediately following the
'Charles A. Higglns
best
we
... -
Niles- s
were
.
prices,
the
the period im¬
-
*
*
~
| vidend payments
Central Falls, R. I.;
in
with rapid ac¬
celeration
in
in¬
•
increase di-
those to
Among
information
Alameda, Cal.; Alton, 111.;
Clarksburg, West Va.; Fitchburg,
Mass.; Joliet, 111.; Kokomo, Ind.;
Lakewood, Ohio; Mansfield, Ohio;
come
a
level of
clude:
can
.J
the
been
crease
■
years,
through what will
after this war is
WILLIAM P.
substantial in¬
Withdrawals for failure to fur¬
Line
stockholders ap¬
to
Electric
The
Southern
Connecticut Light and Power in
plan
a
Industrial Bank
Torrington Company in the in-:
New
*
.
groups.
Colt's, North &
dustrial field, and by
$
equipment
l%s due serially to May 1,
1953.
-
How
steer this bank
in¬
have caused
Co.,
financial
with this bank.
Certainly, it
nish Bank Commissioner with up-
corresponding
creases,
Railway
to-date
a
new
commenced
in
of
production
ery^
Ohio
trust
active
42
for
working in a bank
every day for 50 years, and have
always come through successfully
probably
of
of
experience in
the past cent¬
ury that wars
Richmond, Cal.; Tacoma, Wash.;
Woonsocket, R. I.; Chesapeake &
the
been
bank
over?—W. H. W.
point
has
of June 25, 1943; Additions in¬
clude: Butler, Pa.; Dubuque, Iowa;
all-time high
have
this
this
on
and have been
dustry.
by the
as
Connecticut Brevities
I
of
the
view
were
S.
head
clearly from
New Haven 5. Conn.
Office of the Bank Commissioner
The
P.
Company
Investment Bankers
Church St.,
215
Teletype
necticut
an
possible to get his views
subject?
Powder
While there has been much talk
HFD 564
Hartford
6 Centre! Row
President, Hercules
issues.
Edward M. Bradley & Co.
S.
New York, Cflnal 6-1255
Members New York Stock Exchange
Connecticut
about this subject in the last
Telephones: 5-0151
VVi
other
Inquiries Invited
-
Dl ITM A MX*
r U I HIMIfl
Ofc
(Continued from first page)
C. A. IIIGGINS
Security Insurance Co.
AGENTS
FIDUCIARY
INSTITUTIONS
BANKS
Co.
Haven Water
Thursday, July 15, 1943
Managing A Business For Stockholders
Throiigh The Vicissitudes Of Inflation
always interested in:
are
New
investment rating and in many
instances offer unusually good post-war prospects.
As we have specialized in these securities for over
37 years, we are in a position to make sound invest¬
ment suggestions to
enjoy
& FINANCIAL CHRONICLE
& Abbe upon request.
/Volume 158
Number 4194
THE COMMERCIAL & FINANCIAL CHRONICLE
paid in
Six Months' Rayon
|/8| Shipments Up 5%
Shipments
of
filament
producers to
totaled 242,-
rayon
by American
yarn
domestic
consumers
600,000 pounds for the first half
of
1943,
increase
an
of
5%,
as
compared with shipments of 231,pounds reported for the
;400,000
'corresponding 1942
period, states
the
"Kayon Organon," published
by
the
Textile
Economics
reau, Inc., New York.
Bu¬
June ship-
merits alone
aggregated 39,600,000
the
publication,
compares with shipments
41,800,000 pounds reported for
pounds,
adds
on
shares still outstand¬
ing/:-'^
8
8/
s"Ip8pr(jler do maintain^ a;
distinction
my
to
as
opinion, requires contribution shown for the out¬
accounting.<■recogni-J standing shares Would thenceforth
my
tion of the classification of shares
be
"/capital * and
opinion that it is
not/only
in respect of the legal
or ystated
capital but also in re¬
spect of the related contributions
paid -in
in
the y entire
by sharehold¬
regardless
of
excess
tal./ In
whether reflected in the accounts
a
of
legal
opinion, reflection of
redemption premium paid to one
tion
tributed
appropriate
legal
tion
action
as
a
by another class,
earned
be
con¬
by
or
to
the
principles
surplus
would
for
case
the
of
and
39,000,000
'shipped in June, 1942.
The
Bureau's
shareholders
surplus.
any amounts are
accumu¬
on
account of accumulated
dividends
therefore
distribution
hands
pared
as
likewise
as
dividends, al¬
such' amounts
be
charged 'to
in
respect
shares
intact.'
had
the
outstanding
been
maintained
888
:■
*In the
of
not
"
' ■'
-
course
.
6,400,000
of June
30, 1943 com¬
6,700,000 pounds on
with
"For
.
the
first
staple:
rayon
half
of
on
8118
1943,
fibre
j.
shipments
totaled 78,700,000
pounds as com¬
pared
with
75,80,0,000
pounds
.shipped in the first half
an
increase of 4%.
ies
of
aggregated
pounds
in June
1942.
staple fiber held
Stocks
*
.
'v'"
"
*
'''**,*>
i
.
'
'
•
J
•
i
'
,j
'
,
of
June 30, 1943
on
amounted
to
2,900,000
pounds
2,800,000 pounds held on
.May 31, 1943 and 2,300,000 pounds
•i held on June 30, 1942."
against
A
will
SEC On Redeeming
Preferred Stock
Corporation Stock Retirement Plan financed by life insurance
assure
gency
the smooth passage
of
resulting from the death of
Securities
Commission
opinion
in
and
has
its
business through the
public
8.
regarding the treatment of pre¬
paid upon the redemption
preferred stock.
The opinion
8''8
'
■ '•
;
.
tt'8;
'
*'s.
•••
".
,
insured for the value of their
respective
holdings.
Each
'■
V.
....
Under this plan, the lives of stockholders in the
corporation
an
Accounting Series
emer¬
stockholder.
i
Exchange
made
your
a
x
The
agrees
are
that
8.
miums
of
indicates
that
if
William
paid
frequently
whether
the
on
ferred
has
to
as
a
been
in
.
•
.
-
death, his stock will be transferred
'8-8.
•
8
8"v;-r\8
8'8
f'
| v'
.8
T«:. *8. ,.8 */' 4
f. ?
receive the
""*/•''• ."8*
pre¬
of
excess
j
-
7
to
sated.
in
the surviving
: 8 >{,•-- ♦ 88
>
88
re. w{y „???■?
U'
8v. •
*■■■'•
proceeds of the insurance.
'». ;
}j.''
;8
Thus the family of the deceased stockholder is
fairly
■
i-8
compen¬
-The survivors, whose interest? in the business, are increased
proportion
to
their
present
premium
redemption of
stock
...
stockholders, and his heirs will
W.
"Inquiry
made
*
T
Werntz, Chief Ac¬
countant, Was made public as fol¬
lows^by theCommission:
-.■
in the event of his
the
redemption
price exceeds the amount paid in
on such
shares, the excess should
ordinarily be charged to earned
surplus. The opinion, prepared by
holdings,
continue
can
without
embarrassment.
the
amounts
paid in thereon may
properly be charged against capi¬
tal contributed by another class
of shareholders
whether, when
earned surplus is present, the ex¬
cess premium should be
charged
Ihereagainst.
The following case
is typical. The A Corporation has
outstanding 10,000 shares of $100
par
value
cumulative
ferred stock which
and
is
company
date at
110.
at
the
option
dny dividend
on
There
*
pre¬
sold at 105
was
redeemable
of the
are
common
simple
stock
from its
arrangement,
isn't it? Yet what misfortunes have
come
neglect.
:
'.-"'".V-8.8
We suggest that
.8
you, as a
j
v
'
■ ■■/.
■
;
''
8"
;
stockholder, give serious thought
Stock Retirement Plan for your
own
business enterprise.
It
to a
goes
hand in hand with efficient management.
also out¬
standing 40,000 shares of $50
value
A
or
6%
which
par
were
sold at $60 per share. At the time
the corporation proposes to call
A Massachusetts Mutual
representative will, be
full information.
8
glad
r
<
the preferred
to
give
you
88
shares, for redemp¬
the balance sheet reflects
earned
surplus of $300,000 and
capital surplus of $450,000.
The
capital surplus consists of $50,000
paid in by preferred shareholders
and $400,000 paid in by common
tion,
shareholders.
"The
-
•
.
presented involves
case
fundamental f principle
of
a
ac¬
counting, maintenance of the dis¬
tinction
comer
between
capital and in¬
In recognition of this prin¬
ciple, it has long been agreed that
paid-in capital may
to absorb expenses or
not be
used
charges that
should be deducted from gross in¬
come or
revenue
income.*
While
to determine net
the
charge
volved in the instant
relevant" to
a
the amount of net
raise
the
whether
cognate
paid in
on
should
first
is
excess
be
of
INSURANCE
I':
-
8y'
COMPANY
88
Organized 1851
question
of
of
of
redemption
of the amount
considered
available
surplus, rather than
to
be
earned
of amounts
' i
'
in¬
not
the shares being retired
distributions
LIFE
88-8>"8f:
SPRINGFIELD, MASSACHUSETTS
income, it does
payment
premiums in
case
determination
l(
,
Corporation Stockholders
1942,
June deliver¬
13,300,000 pounds
.as
compared
with
12,900,000
pounds
in
May and 13,700,000
*
t
Bertrand J.
should
earned
;
Perry, President
of
a
formal
re¬
organization, or a quasi-reorganization, a deficit in earned surplus
may be charged to capital surplus.
pbunds
May 31, and 7,000,000 pounds
June 30, 1942.
paid
unpaid
-8
surplus."
announcement
totaled
paid
excess
Also, if at the time of
redemption
"Filament rayon stocks in pro¬
pounds
in
contributed
by
them should be charged to earned
re¬
July 9, further said:
ducers'
opinion that
amounts
"which
"May
my
cited the amount
though in fact capital contributed
these principles in that the capital
men¬
of
Surplus; and (3) such
available
is, therefore,
preferred
although
in fact
were
apparently earned
classifies its share capital, with
shares of the same class still Out¬
resulting distinctions in dividend
standing, would ordinarily be in¬
rights,
asset
priorities,
voting
with
powers, and other matters, ad¬ consistent
recognition
of
herence
amounts
lated earned
diminu¬
utilization of amounts
or
no
such shares
on
bursement there existed
my
class of shareholders
less than the amount actually
(1)
stated capi¬
or
capital stock or as capital or
paid-in surplus. When a corpora¬
as
by
"It
in the
paid in respect of the outstanding
shares; (2) at the time of the dis¬
consider
capital
in-;
proper
amount contributed
ers
;
appropriate
between
income, it is
necessary
tioned,
209
'.,,8
THE COMMERCIAL & FINANCIAL
210
Canada Proposes
change transactions are, however,
effected in national currency. The
Canadian
proposals are similar in
respect to the American;
this
no
has been suggested in
name
new
of "bancor" and "unitas";
is merely referred to
"an international unit" or "the
place
(d) The extension of credit is
cure-all; it merely provides
time for adjustments; and unless
hot a
the currency
positions (except those accom¬
panying long-term capital move¬
ments) are brought into equilib¬
rium, any arrangements made will
unit."
as
accounts
Press
Associated
In
vided
principal resources will be pro¬
through capital subscrip¬
eign exchange control fund, like
those now operated independently
tions
by the United States, Great Brit¬
similar
ain, Canada, and the Axis coun¬
(Continued from first page)
and it should provide time to
their inter¬
national accounts unbalanced to
take the necessary corrective mea¬
sures to adjust their position.
proposals provide for an
fund whose
international exchange
$10 United States currency—will
be primarily an international for¬
Plan For
through the international mone¬ official Canadian announcement
tary organization should be ade¬ points out that "in the British plan
transactions with the union are
quate to deal with that portion
of current account surpluses and carried out through accounts es¬
deficits which is not met by relief tablished in a new international
In the
and other concerted international currency, the "bancor."
action in the years immediately American plan the accounts of the
after the war; it should be suffi¬ union are established in terms of
"unitas"
and member countries
cient to provide a firm basis on
which multilateral
world trade may establish unitas deposits by
can
be re-established after the depositing gold with the fund; ex¬
countries which find
Canadian
unit, and will be equal in value
137 1-7 grains of gold—about
to
International Exchange Union
war;
Thursday, July 15, 1943
CHRONICLE
like the British plan
tries.
the
"Chief difference in the Cana«*
dian
of
proposal and the earlier plans
Britain
the United States
and
member countries.
In
the Canadian plan is
by
this respect
the American
to
and
un¬
under which
organization would not
with any initial cap¬
new
be endowed
ital funds of its
own
but would be
enabled to meet the exchange re¬
are
the
capital up to $12,000,- quirements of member countries
000,000, compared with the $5,- through the willingness of creditor
000,000,000 in the American plan countries to provide their national
and as much as $25,000,000,000 in currencies in exchange for bal¬
the British
suggestion, and the ances in the newly-created inter¬
that the
and
should be
resources
adequate to provide a real breath¬
ing-spell during which basic re¬
adjustments can be made.
The
plan provides for aggre¬
American
least $5,000
provision
mandatory loans though it
gives the institution power to ne¬
gotiate loans and, if possible, in¬
gate
of
quotas
"at
million" and makes
no
for
its
crease
In
this
in
resources
way.
the British plan the resources
of the
in
clearing union
amount
credit
state
of
of
amount
partic¬
depend upon the
outstanding at
ular time would
not fixed
are
the
but
any
member
in
unbalance
small national currency, Bancor, which countries' international payments.
would accumulate to their credit Theoretically, the aggregate bor¬
"The two provisions are inter¬ in the books of the clearing union. rowing power of member coun--;
twined, since the voting power of
2. Size of resources of the new tries, as measured by their quotas
which are based exclusively on
the participating nations and their institution.
The
Canadian
pro¬
contribution to the capital of the posals provide the new institution international trade, would be in
union are to be based, under the with assured resources of $12,000 the neighborhood of $25,000 mil¬
Canadian
plan,
on
an
agreed million. Each member country is lion, but not all countries could be
"quota."
to be assigned a quota based on borrowers at the same time.
stronger voting
debtor nations.
The
advices said "it [the
same
Canadian
of
power
designed,
is
plan]
as
such factors
as
international trade,
national income and gold
and for¬
3. Form of contribution of
ber
countries
to
mem¬
of the
resources
the British and American eign exchange holdings. The ag¬ organization. In the Canadian plan
the capital subscription would be
plans, as an international pool of gregate of these, quotas is to be
15% in gold and the balance in
as
foreign means of payment for the $8,000 million, and in addition
national currency; the entire cap¬
"It
proposes
an international
break down.
participating countries, a method each member country is to under¬
ital subscription would be paid-up
(e) No country participating in lending agency with a capital of of providing British and Peru¬ take to make advances to the in¬
originally and a vians, for instance, with dollars to ternational exchange union, as at once, but time would be allowed
the
arrangements loses control $8,000,000,000
to countries with small gold re¬
over the size of its international possible $12,000,000,000 eventually,
pay for American machinery ex¬ required, of amounts equivalent to
serves to complete their gold pay¬
commitments, since it can deter¬ which will be designed not merely ports, and of making pounds or half its initial quota. These ad¬
ments. In the published American
mine their size by its own action, to take care of immediate post¬
pesos available for Americans who vances would only be called up
war currency problems but to pro¬
proposals, only 50% of the capital
if it wishes to do so.
want to buy British or Peruvian When the union was short of any
subscription
would
be
paid-up
(f) No country participating in vide permanently better money products.
particular currency, and in these
the
arrangements
loses control machinery to facilitate trade be¬
circumstances
the country con¬ initially, the balance to be subject
The following official explana¬
to call provided four-fifths of the
over
its domestic economic pol¬ tween nations.
cerned would be faced with the
member-votes
"The clearing union, which pro¬ tory notes on the Canadian plan alternative of
agree.
Initially
icies.
reducing its exports
for
an
International
Exchange
As to the International Currency poses to create a new currency
as
other
countries
would lack 12% % would be paid-up in gold,
Union have been made available:
12j/2% in national currency and
means of payment if it were un¬
proposed in the several plans, the which so far is called merely the
The proposals put forward by
25 % in government securities. In
willing to make advances until
the Canadian experts are in cer¬
the British plan, there would be
equilibrium could be restored. The
tain important respects a compro¬
no initial capital subscription but
view of the Canadian experts is
member countries would provide
mise between the American and
that there is more danger in estab¬
other members with their national
the British plans. The main pro¬
lishing
a
fund
with resources
visions of the Canadian plan may
which are obviously too small than currency against the transfer of
be compared with those of the
"Bancor" deposits on the books of
there is in
establishing a fund
the clearing union.
other two plans under the follow¬
Organized as N. WV Harris & Cd. 1882—Incorporated 1907
whose resources turn out to be
HARRIS TRUST BUILDING, CHICAGO
4. Ability of member countries
ing headings:
1. Form of organization.
The somewhat greater than needed; to obtain foreign exchange. In all
the proposals the ability of mem¬
were
July 12, it was noted
to the Canadian plan:
from Ottawa,
Harris Trust and Savings
Bank
ber countries to obtain foreign ex¬
change is measured in relation to
Statement of Condition
June
REPORT OF CONDITION
30, 1943
OF
their quotas, which aggregate "at
least $5,000 million" in the Amer-
THE MANUFACTURERS NATIONAL BANK
v
Resources
OF DETROIT
Cash
U. S.
in the State of
Hand and Due from Banks—$103,680,055.34
on
U. S. Government Bonds and Notes—
,
Other Bonds and Securities
Customers'
Liability
and Letters of
on
Accrued Interest and Other Resources
1,517,991.30
guar¬
249,275,918.41
977,760.02
and debentures
—11,590,992.94
$240,000.00 stock of Fed¬
stocks (including
eral Reserve Bank)
Corporate
399,500.00
—
Cash, balances with other
banks, including reserve
balance, and cash items in process of collection
Bank premises owned $330,393.88, furniture and fix¬
tures, $1.00
—
Real estate owned other than bank premises'Other
assets
97,479,603.18
330,397.88
52,928.56
.
716,519.03
.—..——,——
Capital
$
—
Surplus
liabilities
44,038,055.85
20,421,333.57
9,727,195.66
27,833,783.00
2,358,890.94
883,194.91
—
$ 19,806,484.20
4,806,484.20
LIABILITIES
$393,514,552.51
__________
Reserves for
Time
common,
65,224.81
total
par
profits
Reserves
1,921,758.95
.
10,446,100.71
418,296,021.65
459.49
of
of
U.
S.
Government
Municipal Securities
obligations
are
of United States Government
Trust
Deposits,
ACCOUNTS
$403,960,653.22
vertible
and
to
pledged to
and
$301,000
secure
of
$27,577,-
Pledged assets (and securities loaned) (book value):
U. S. Government obligations, direct and guaran¬
teed, pledged to secure deposits and other liabilities
Deposits and $11,172,170.40
qualify
for
for
the
current
of payments
eign
not
may
a
fiduciary
Assets
powers.
or
use
for exercise of fiduciary
and for purposes other than to
to qualify
pledged
corporate powers,
liabilities
union
may
which
has
to
a
from
the
of for¬
the
resources
con¬
union
of the
to
of capital. The
require
used
a
country
25% of its
capital exports
up
control
condition of making fur¬
a
foreign exchange
The purpose of this pro¬
ensure that the resour¬
vision is to
ces
252,280.57
and is in
union, without special permission,
from it.
secure
transac¬
net purchaser
exchange
ther purchase of
$ 31,987,720.57
of set¬
purpose
account
country which has
a
deficit in its current account bal¬
as
MEMORANDA
of the in¬
resources
tries^ are to be freely inter-con¬
tling
quota
$445,597,445.05
—
its
year,
to finance exports
24,806,855.11
Total
and
524,341.76
-———
-—
.
CAPITAL ACCOUNTS—
TOTAL
TOTAL LIABILITIES AND CAPITAL
$42,114,800
5,000,000.00
$393,489,166.54
Deposits
Deposits-—_
State
3,090,000.00
——
.
—i
.__
Undivided
a
(b) Within the limits indicated
above currencies of member coun¬
sequence
Capital stock,
Surplus
Acceptances and Letters of Credit.
Demand
that the
ance
7,429,714.39
twice
quota, at
subject to
the following conditions:
(a) Country which holds inde¬
pendent gold and free foreign ex¬
change rserves in amounts exceed¬
ing its quota shall not have the
right to be a net purchaser of
tions, but
TOTAL
Taxes, Interest, Con¬
tingencies, Etc.
of
288,252,098.58
—
Other
Undivided Profits—
extent
sure
deposits of individuals, partnerships, and cor¬
porations
—
—
deposits of individuals, partnerships, and coriporations
Deposits of United States Government
Deposits of States and political subdivisions
Deposits of banks
—
---—
——;
Other deposits (certified and cashier's checks, etc.)£££
TOTAL DEPOSITS
$392,631,357.60
9,000,000.00
the
the rate of 50%
stitution afe used primarily by
those countries which have the
greatest need of them.
LIABILITIES
Time
6,000,000.00
each member country
purchase foreign exchange to
foreign exchange from the union.
This provision is
designed to en¬
Demand
Liabilities
proposals
can
$403,960,653.22
ASSETS
$445,597,445.05
—-
-
$ 43,197,033.20
$15,931.89 overdrafts)-
obligations, direct and
—
TOTAL
Total
differences in the conditions
utilized, however, make compari¬
among these figures some¬
what misleading. In the Canadian
JUNE 30, 1943
Obligations of States and political subdivisions
:
65,224.81
—
Government
Other bonds, notes,
'450,000.00
Acceptances
Credit—
discounts, (including
States
anteed
84,365,366.42
I
Federal Reserve Bank Stock
Loans and
United
45,307,956.86
——
Loans and Discounts—.
approximately
$25,000 million in the British plan.
sons
39,469,904.46
Municipal Securities-
$8,00Q million in the
under which these quotas may be
ASSET S
87,939,865.91
State and
plan,
Canadian plan and
The
Michigan
AT THE CLOSE OF BUSINESS ON
82,801,079.95
Treasury Bills and Certificates
cian
of
nance
the. union
j
are
international
used
trade
to
fi¬
and
other current transactions and not
$ 32,240,001.14
TOTAL
Secured
Member of Federal Deposit Insurance Corporation
Liabilities:
'
flights
Deposits secured by pledged assets pursuant to re¬
quirements
of
law
1;
^—
enable
to
$ 20,174,679.55
disturbing
capital
take place from one
to another.
to
country
(c) When
Offices
DEARBORN
.
'
.
to
HIGHLAND PARK
DETROIT
Penobscot
Buy War Bonds
-
Building'
Member Federal Deposit Insurance
Corporation
50%
chase
the
a country has used up
of its quota for the pur¬
of
foreign
exchange
from
union, the latter may, as a
condition of making further sales
of foreign exchange, request that
Volume 158
Number 4194
THE COMMERCIAL & FINANCIAL CHRONICLE
■
country
to
amounts
v
of ' its
of
serves
sell
it
appropriate proceed to ration them,. At this
independent re¬ point the union has the duty to re¬
and free foreign consider the exchange rate struc¬
gold
exchange. ; •*/., ^
(d) The union has the right at
any time to impose conditions on
ture
and
under
there
which
is
a
provision
member
countries
be permitted to restrict im¬
may
ference
tions
such
may
with
of
the
normal
controls
choose
as
to
and have re¬
explanations of this pro¬
posal from American officials. A
ceived
under
country
any
impost consistent
similar, procedure
ports from the country whose
improvident
Exchange rates. In the Cana¬
plan the initial exchange
rates are to be fixed by agree¬
may
ment
their
of
use
the
plan, as
published, the ability of member
countries to purchase foreign ex¬
change^ from the fund is
ap¬
parently limited to 125% of the
quota, of which 25% m'ay be used
in the first year and 75% in the
first two years.
Additional sales
of foreign exchange beyond these
limits
require
approval
the
four-fifths of member votes.
of
for
provides
The
serve
a
between
member
countries
and the union and any subsequent
change requires the consent of the
country concerned. Member
tries
undertake
not
to
coun¬
vary
provision under which
the
which
Canadian
experts—(who,
noted
be
TENTATIVE
remain
have
it
behind in its current
goes
account
by a certain
right to depreciate
footnote to this pro¬
FOR
n
AN
PROPO¬
versations.
British
INTERNATIONAL
have
UNION
by 5%. Iri
a
Canadian experts have
2.
Government
of
Tentative
Draft
Proposals
able to raise this permissive de¬
to
country which is exhausting
quota more rapidly than is
a
its
warranted.
•*
-
plan, member
countries may obtain exchange
through the facilities provided by
the clearing union to the extent
of their quotas, subject to the
following conditions:
;
(a) A country may not, without
special approval, use more than
25% of its quota within a year.
(b) A country which uses up
50% of its quota may be required
to deposit collateral in the form
,
of gold, national currency or gov¬
ernment securities, (c) As a con¬
dition of being allowed to use up
more
than 50% of its quota, a
de¬
preciate its exchange rate, impose
country may be required to
control oyer capital exports or
a
surrender
a
suitable proportion of
its gold and foreign
what different
exchange re¬
under
some¬
safeguards.
In the
British plan the initial exchange
i ates are fixed
by agreement and
there
Under the British
10%
is
similar
a
5%
permissive
the
American
provision
for
depreciation.
In
plan as published
the fund fixes the initial rates and
part,
fact
that
tentative
Experts
Plans
on
for
in
1.
Officials
of
the
of
and
the
comment
suggestions. Ca¬
who have been
British
and
the
general character and to sub¬
alternative plan^ Like the
British and the American plans,
Canadian
Associated
a
mit
oppor¬
an
the proposals of the Canadian
tunity of examining the U. S.
Treasury Department Preliminary
Draft Outline of a Proposal for a
United
that they
American proposals are, therefore,
led to make certain observations
Post-
an
to those
as
critical
experts
studying
War Monetary Organization
Government have had
(as well
governments)
and constructive
provisional
are
tive in
Nations
ex¬
American
and
tenta¬
character; they incorporate
important
features
•
of
both
and
the
British
2,
,
The
main
objectives of the
American and the British
propo¬
sals appear to be
identical, namely,
the establishment of an interna¬
tional monetary mechanism which
will aid in the restoration and
development of healthy interna¬
tional trade after the
war, which
will achieve
a high
degree of ex¬
change stability, and which will
not
conflict with the desire of
countries to carry out such poli¬
cies as they may think appropriate
to
achieve, so far as possible, eco¬
stability at a high level of
employment and incomes. To aid
nomic
in
the
achievement of
lishment
that
each
of
a
international
new
*It
might
be
preferable to
proposed organization
Exchange
Fund.
as
to
the
the voting
countries
quotas.
In
voting
with
the
describe
both
the
term
the
association
resources
Union
document
has
to
of
been
the
used
describe
strength
quotas which
is
are
Canadian
plan,
OF
the
(Continued
on
organization
page
The
Complete Banking and Trust Service
like
the British,
voting on pro¬
posals to increase the (quota (and
hence the borrowing power) of
provides
that
DETROIT
based, in turn,
trade.
in
Statement
of Condition June 30,1943
.
its
obligations.
tries.
The
taken by
,
of
5. Position
;
creditor
British
coun¬
scheme
pro¬
vides that creditor countries shall
pay
interest
on
their
"Bancor"
majority vote. The ex¬
a general change in the
value of gold, for which a fourfifths majority is required.
In
ception is
the
American
proposals
many
decisions
require
a
balances while no such provision
important
is found in the American or Cana¬
four-fifths
majority which would
RESOURCES
Cash
on
Hand and Due from Other Banks
United States Government
guaranteed
......
Other Securities
.
.
plans.
All three schemes place veto power in the hands of
provide for interest payments by countries with very large quotas,
debtor countries. The British plan ican plan two years' notice.
The
Loans and Discounts
8. Withdrawal from the union.
provides that the clearing union
The Canadian plan provides that
may make recommendations de¬
signed to restore equilibrium in any country which has been a
the international balances of a creditor in the union may with¬
persistent creditor but leaves the draw by giving thirty days' no¬
ultimate decision in the hands of tice: Deficit countries must give
Overdrafts; (
Real Estate
>
Branch
gested
recommendations designed to re¬
power
rendered
be
If the drain of
persists and the
store
equilibrium.
that
currency
in
the
9.
as a
substitute for the veto
for
its
supply of that currency
with
arranging, if possible, ■ with the
country concerned and in cooper¬
ation with such international in¬
vestment
tablished,
agency
for
a
as
may
be
programme
es¬
spect
to
has been suggested in place
and
"Unitas;" the
(or earlier if deemed advisable) a
on the situation is to be
rendered; and when it becomes
obvious that the remaining sup¬
No
new
"Bancor"
currency
"An
is merely referred to
international
unit."
unit"
or
.
.
.
.
.
.
•
,
.
.
.
.
14,733,044.66
.
.
.
$ 88,894,254.64
.
.
.
.
.
.
.
34,695.87
.
.
.
.
103,661,995.17
1,065,227.18
1,909,834.26
.
.
.
...
....
.
.
.
.
.
188,039.10
.
3,355,497.06
.....
$1,073,494,906.46
.
$897,739,292.12
99,620,093.19
„
Treasurer, State of
Other Public
Michigan
Deposits
7,687,094.30
23,763,312.67 $1,028,809,792.28
Capital Account:
_
Preferred Stock
8,500,000.00
Common Stock
A
.
.
.
.
Surplus
11,500,000.00
Undivided Profits
Reserve for Common
August 2, 1943
Reserves
Our
10,000,000.00
....
.
....
Stock Dividend No. 18
.
.
;;,
.
.
.
.
37,435,219.85
.
500,000.00
.
.
.
.
7,435,219.85
payable
,
3,394,397.27
Liability Account of Acceptances and Letters of Credit
3,355,497.06
TOTAL LIABILITIES
$1,073,494,906.46
United States Government securities carried
are
pledged
public and
to secure
trust
at
$127,338,234.57 in the foregoing statement
deposits and for other
purposes
required by law.
experts would appear to be that
if any limit is placed, on the will¬
creditor
countries
accumulate the international
rency,
to
Member Federal Deposit Insurance Corporation
cur¬
the differences between the
procedures envisaged in the Brit¬
ish and American plans are pure¬
ly technical and of secondary im¬
portance.
10. Exchange market.
None of
plies, of the scarce currency may
soon be exhausted, the union is to the plans contemplate any inter¬
900,000.00
as
"the
The view of the Canadian
of ingness of
foreign capital investment. When
the 85% level has been reached
report
the American.
,
U. S. Government
tablished in terms of "unitas" and
of
.
Commercial, Bank and Savings
name
53,829,347.13
Deposits:
In
the British plan transactions with
dealing with scarce currencies member countries may establish
begin at the somewhat earlier unitas deposits by depositing gold
stage and carry on somewhat fur¬ with the fund; exchange transac¬
ther than the American propos¬ tions are; however,
effected in
The Canadian
als..!; When the union's operations national currency.
have resulted in net sales of a proposals are similar in this re¬
particular currency to the extent
of 75% of that country's quota,
the union is to attempt to increase
.
l
currency.
holdings
are
threatened the union are carried out through
exhaustion, the fund must accounts established in a new in¬
apportion its remaining supplies ternational
currency,
the
In the American plan
among member countries by some "Bancor."
equitable method of distribution. the accounts of the union are es¬
proposals
.
LIABILITIES
fund's
Canadian
.
TOTAL RESOURCES
with
The
...
Buildings and Leasehold Improvements
of Credit
referred to above.
International
.]
.
Mortgages
Cana¬
dian plan would appear to be sug¬
with
must
port
countries
or
.
.
concerned.
The one year's notice in the British
provides that when plan on year's notice of withdraw¬
al is required and in the Amer¬
any particular currency becomes
scarce
(in the sense that the ican plan two years' notice. The
fund's operations have resulted in short withdrawal provision for
credit
.
Prepaid Expense
.
Customers' Liability Account of Acceptances and Letters
country
to the
extent of 85% of the quota) a re¬
.1.
,
Accrued Income Receivable—Net
American plan
net sales of that currency
612,148,705.26
.....
.
■'
dian
the
296,436,261.30
fully
or
.
.
Stock in Federal Reserve Bank
Loans:
$
....
Obligations, direct
BUY
U;
S.
WAR
BONDS
REGULARLY
OUT
members
itself.
the
larger
plan the
based on the
international
on
the
of
institution, the
throughout this
strength of
British
the
any
misunderstanding
which
might
through the use of the term Fund to
arise
NATIONAL BANK
quota. The
to
avoid
possible
country
effect of this provision is to dilute
refer
the International
However,
should have 100 votes plus a num¬
somewhat
ob¬
monetary institution. Their pro¬
posals are large in conception, but
7. Voting power. The Canadian
proposals follow the American in
ber determined by its
these
jectives, the British and American
experts have proposed the estab¬
fifths of member votes.
providing
plans
and add to them certain new ele¬
ments.
and
perts
changes are permitted thereafter
only with the approval of four-
(d ) A country which has
used up more than 75% of its any
country
increased
voting
quota for two years may be re¬ strength
should
be
given
to
quested to take steps to improve creditor countries. The Canadian
its position and if it fails to do so plan provides
that, with one ex¬
it may be declared in default of ception, all decisions should be
serves,
and
their
the
are
welcome
nadian
General Observations of Canadian
preciation
other
would
of
power
to
for
on
proposals
General Observations of Cana¬
quota,
and the fund is given
to impose conditions on
further sales of foreign exchange
American
stress
dian Experts on Plans for Post¬
war Monetary Organization.
1.
might be desir¬
securities exceed the
currency or
that it
exploratory
to representatives of the Canadian
Canadian Experts for an Inter¬
national Exchange Union.*,
indicated
The
experts,
laid
their
CONTENTS
payments
vision the
entirely
not been committed to any course
of action as a result of these con¬
DRAFT
EXCHANGE
been
character, and have made it clear
amount has the
countries with the fund when the
ex¬
and the Canadian Government has
anony¬
SALS OF CANADIAN EXPERTS
the
country
a
con¬
discriminatory exchange perts for an International Clearing
Union.
The discussions with both
practices.
c-i \
The tentative draft proposals of British
and
American
officials
of the union but there is
consent
paper
from
initially-agreed rates without the
J atter's
holdings of that national
'
dian
a
special re¬
to be deposited by member
plan
cur¬
: -
6.
quotas.
American
scarce.
followed in
the
with
taining proposals by British
mous) follow in full.
Under
has become
rency
was
connection
with the general obligation found
in
all
three
plans
to
refrain
further sales of foreign exchange
to
countries which
are
making
,
Stabilization Fund,
opera¬
exchange market
OF
INCOME
212)
THE COMMERCIAL & FINANCIAL CHRONICLE
212
Thursday, July 15, 1943
currency
it realistic, alternatives? in the form large; (and may.' in consequence
foreign >coun-; of trade disorganiza^-" — ---A
never be entirely used) than therd
is in the establishment of an in¬
through its imports and other lier; than? the-;
current payments abroad—^n othef sources.'-Moreover, and
stitution whose resources are ob<*
words, trade would in effect be portant of all, the resources
viously too small; The interests
reduced to barter. In point of fact; vided are; not' given away;
of all will, best be served by pro¬
amount
made
of
its
own
available
,
to
tries
.(Continued from page 211)
no
larger than
rium is to be achieved and main¬
the problem i
improve
the structure and operation of the
monetary mechanism on the basis
of experience.
But there is no
reason why
proposals should be
based- exclusively on the limited
: knd, on the whole, bad experience
There is every reason to
tained.
Nor should it be
thought
proposed international
monetary institution is merely an
instrument of the transition period
that
the
.
from
war' to
peace.
.True, it has
special importance in this period
but it should be designed as a
—
however; there is no possibility
that countries wpuld for long,
alloyv. themselves to beconfined
in such a strait jacket/ Faced with?
the problem of an unsalable - sur¬
plus of export goods and whh con)
sequent domestic *unempIo.y ment?
they would refuse to accept ?the
penalty of disorganization of ex-,
pott "trade if ' that penalty^could
.
,
Unless permanent institution and not as
dependable exchange and-credit a stop-gap to function during a
relations between countries can be relatively short period of time.
achieved before the stresses and
5, An important, perhaps the
strains of the post-war period be¬ most important, feature of the
be avoided;' even temporarily,' by
of the
past two decades.
that
irreparable damage can be avoided.
gin, there; is little likelihood
•
British
and
American
the
pro¬
the extension of credit.
Countries
posals is the provision in both would embark on bilateral credit,
for international plans for the extension of credit arrangements, * no doubt v linked
monetary organization are to be between countries. The two plans with deals relating to, "the.}pur^
successful/ other problems^by no differ as regards the precise tech¬ chase and sale of goods; andYas
means less difficult or less imporniques to be used in extending soon as certain countries began " to
itant-^will also have to be faced credit and ?as regards the amounts adopt; this course otlierswould;
and solved by joint international which may be involved; but both find that" they had to follow- suit
actibn. It would, indeed, be danr plans provide that foreign credits to protect their trade interests, a It.
gerous to attach' too • much impor¬ are to be available under certain is-difficult to imagine. a more;
countries
having fruitful source of international;
tance to monetary organization of conditions to
and ■' by itself, if this resulted in need of them, and that they shall dissension
than
a
competitive
neglect of other problems which be made available through an in¬ trade and credit extension pro-;
;may be even more important and ternational monetary organization gramme of this character.
The Canadian experts believe it
•difficult, or in a misguided faith rather than through bilateral ar¬
.that with a new form of .monetary rangements - between
pairs
of to be«true, therefore, that the. Sta¬
organization the other problems countries. The .provision for credit bilization Fund or Clearing Union
would solve "themselves.
In the extension is nothing more nor less plans do not involve 1 a ' decision
international field alone (to say than a straightforward and real¬ as to whether foreign credits shall
nothing of the - innumerable do¬ istic recognition of the fact that be extended or withheld, ^ rnj soine..
mestic problems involved in the at the end of the war a large form or other, credit (wflltin>ifact;
profound changes in the structure number of countries, whose im- be extended, and the decision
of (production ; and employment pbft lequiren^rttswill be consid¬ which has to be taken relates pri-v
which have taken place in all bel¬ erable, will not have immediately marily to the method .employed;1
ligerent and many; nonbelligerent available a sufficient reserve of' For the reasons given; above,fin)
countries due to the exigencies of foreign assets to enable' them- to international'
arrangements
are
the| war) it will be necessary to expose themselves to the risk of greatly to be preferred to bilatf
attack frontally such problems as participation in a world economic eraT deals.
?'.???.)
commercial policy, international system. An interval will be needed
7., This leads to the ) question/,
investment, the instability of.prir to give time for adjustment and how
much credit should be made
ma^y product prices—to name but reorganization. If the penury in available through the ? interna¬
aifew. No international monetary,
foreign means of. payment of cer¬ tional monetary mechanism?^ A;
organization, however, perfect 'in tain' important countries is to he
vital feature of any .pian)6f (thi$
form, could long survive economic allowed to fix the pattern of post¬
sort is the provision it; mdkes Jfor;
distortions resulting from bilate-^ war trading and domestic policies,
)the borrowing power of each1', parr,
ralist trade
■
3.
-
If plans
.
.
.
practices,
continued then all
rbfijisal of creditor countries „ to
ury—no
can-
look forward to pen¬
country, rich or poor, will
acCppt imports in payment of the escape the impoverishment result¬
service on their .foreign invest)
ing fropi .the. throttling of inter¬
ment "or to invest their current national trade which will result.
account (surplus abroad, or enor¬
mous
fluctuations in food and raw
material prices such as character¬
ized the years between the two
wars.
But the fact that there are
problems to be fa'ced cannot
be used as an-excuse for facing
many
/
pbrie. A start must be made
some¬
6.
It is useful to consider what
of
an
in¬
ternational monetary organization
is po
substitute for the
measures
of international relief and rehabil¬
itation whiph will be 'required as
war
and
the(organiza^,
participating5c(^n|pesi
through the provision of . capital;
the accumulation of balances or
through loans.
Some concern has
chinery • of • the.general- character
may
be assumed by prospective
It is probable that Can¬
United
States
Kingdom.
ternative
and
the
Theoretically,
would
be
.
of the
.
United
one
al¬
immediate
of
acceptable foreign assets such
as
securities
and
gold.
The facts
regardirig the • distribution of the
world's monetary
gold reserves
and the changes which have taken
draws to its conclusion
place in the course of the war in
afterwards; and in the view various countries''
holdings-of for¬
of the Canadian experts any mon¬
eign securities are too well known
etary organization which is set up to
require elaboration.
Broadly
should not
be
called
upon
to
speaking, and allowing for certain
finance transactions of this nature.
exceptions and time-lags, a cash
Sortie Continuing and stable ar¬ basis, for the settlement of inter¬
the;
tion by the
of
of
,
The establishment
resources
size
where, and for the reasons given
cash settlement for; all interna¬
in paragraph 5, the problem of
tional transactions. But how can
international monetary organiza¬
cash be produced for purchases
tion is a logiCcil and fruitful start¬
abroad? * Only 'by selling goods or
ing place.
•
services, abroad, or by disposing
4.
the
been
by .the experts
zation's
•
acter;
tional
to'participation xh|interha^ justrnents; to(be
^relief!)schen^
andj
,
-
will, by and large, lose •by. the reduction in the ' institugain rforeign; exchange ?to'- the :tion's holdings ;of 4 that 'particulart ■
Countries. which: are
Extent,1 but only to the extent; of. currency.
the unbalance in their current' ac¬ likely to; require a "scarce'' cur-';
count; transactions : with the rest rency will hasten to .make* theirt
of ith'e world. If a country.is?build¬ purchases which: are payable) iri
ing : up a substantial; credit: posi-. that- currency; As the holdings of
countries '
Or >
.
tion, it will know that this situa¬
the "scarce" currency are
tion is
as
ing
produced because it is sell¬
goods
.more
and
services
abroad .than it is buying abroad;
the
commitment
which
ada will be a creditor, country, on
current
and the
account,
Cana¬
pxperts have therefore given
careful
thought to this aspect of
the arrangements.
.
used
up,)
discussions and arguments corn-'
regarding
mence
of
enlargement
an
the quota or some other form
of extension of credit,-: grave
mis:-)/
If>Jt is: dissatisfied. with - this;posi¬
tion,it wishes to ' reduce its givings in regard to the interna^
.tional situation will arise.
The
credit^
position will be very much; akirf
of the to that of a bank whose cash rereserves are feared to
be insuf-»
courses ;of action ever open to it.
True, it is by no means easy for ficient. There will be a (run* on
'a ;• country?^
that; currency in the ihsUtutibn;
ficipation • in the proposed organ¬
ization rlost
"nosingle
one
problems, of)unbalance?1*But? as a
last :resort? a country) can Vf ind a
solution > by ? unilateral action.
It
carif do- the only things it ever
could': do) in .these ; circumstances ;>
.
it; can X buy.
and
if
the
is
concerned
currency
one? the interna);
tional effects will be very serious
an
important
No form of' international
indeed.
monetary organization
can con tin)
for chronic'
nialadjustrnents in-the current-ac)
uously.
compensate
" abrpad^goods,
"services or investments;, or it can
sell (less abroad a It • is therefore
quite:wrpng.to. assume that:coun¬
tries" participating 'in; the :proppsed
institution? woto(of? this'
countries
pafyici^
(stopd;a vfair; chaiipe; of facing )a;
■crisis at a comparately. early datel
more
count balance of
which
.
'payment of .the
be
may
con-?
cerned; but it would be most un):
wise to. set up. niachihery, - which'
.
^mitments/It 'may<be^andmo;doubb
'•11.
To
ayoid (misunderstanding
is, v.usefulltp,' erect J danger ^signals' ?ii) should <be • empha^zedAthat;^
'stations • along; the road would be extremely dangerous to
followed
by both
debtors and use short-term credits as a device
creditors. Such signals are useful to
cover
up
basically unsound
at various
expressed in regard to; the reminders;
creditors.
dian
rtccomplish^;)^
•must)be stich)hhat;the ?or^
necessary'though the1 latter, tion? will command 'getiprtah cortfW ;
may / be. :
;)•': 'a
dence' in its I own stability.- Fort?
9.
It seems apparent that, in ifk-this is not ? the " case, what r will
one
It?will?be"belieyed;that::
way or, another, substantial' happen?
unregulated movements of cap¬ certain. currencies • are_'likely, to
ital) between, countries will be becopae y "scarce?' v Aeuri^hcies-^)
prevented.1 in;these circumstances, ■belief > which ? will ■ i be* reinf of eed^%
ticipant and for the .'contribution :tfoUbver;theirdnternatibna
to
would happen if no action were
taken to set tip international ma¬
suggested
fully secured by the organi¬ viding a fair degree of latitude;
holdings • of : gold and na¬ a satisfactory breathing-space-—to
tional, currencies. It .can only- lead debtors and creditors alike. If'its
to confusion1 of thought to regard objectives' are to be • achieved; the
participation in such plans as these resources? must Abe 'large enough
as
in? any* way • similar; in ; char¬ to" perrrtit - time :'for? basic • read^
are,
which
should
in this connection.
distortion
of
situation for
the
,
::
10. .If the
analysis
of
foregoing is
the
correct such
situation—and
would appear to be a
it
simple state¬
of fact—creditors
ment
,
a
need
not
be
8., There is one preliminary, ob¬
servation
But there is nothing positions. This would be no less
in
prevent
either
creditor
or disastrous
the international
debtor frpm (taking remedial ac¬ than in the domestic field, and
tion at any time.
any monetary system which made
to
made
be
It would
realities
of
be
a
the
country, or its
citizens, to regard the willingness
to provide resources to an-inter¬
any
unduly concerned-about the
possible
size
of
their
invest¬
ment
in
the
Fund,
knowing
an
attempt on a large scale
would I Inevitably
break down?
A;
chronic unbalance; in current ac¬
count
balances
payments
which
of
is
international
not
matched
by
voluntary long-term capital
movements—lending abroad by?
that the ultimate actual size of creditor countries, and borrowing
by
debtor countries—is
their stake can be determined by abroad
of
a
deep-seated
their own course of action from symptomatic
day-to day and from- year to year? maladjustment .which has to be
dealt with if equilibrium is to be
Nevertheless; even the appearance
,
,
organization of the gen¬ of an unlimited commitment is restored. No debtor country can
character ^proposed by the probably undesirable and in (the liye beyond its resources indefi)
national
eral
nitely; and no creditor country?
can persistently
refuse; to lend its
surplus abroad or make other ad¬
performed for. the sake of foreign
justments to its creditor position
countries. Resources are provided
to the organisation, first,; because tion? \ But? there is ' less ?real; 'dan¬ ^without ripping the internationalall have a stake in recreating: a ger,; to ? the a interests of ( creditor fabric; But time is required fort
rangements
regarding
interna¬ national transactions would mean functioning international econom¬ countries ' in the establishment of adjustments to be made and fori
tional long-term investment are that any country's capacity to ex¬ ic system and, secondly, because a Fund or a Union whose potem remedial measures to have their:
also clearly essential, if .equilib¬ port would be limited- to, the for each individual country t the tialA resources > * are • unnecessarily j
(Continued on page 220)
)
:
'»
... v
v •-■.:■
British and the American experts
as
an
act
of generosity
tenative
proposals * of Canadian
limit is placed on the
obligation of each participant to
provide; resources? to, the institu¬
which, is, experts,
i
a
-
,
..A.;.;--.a;;
;
a-V-A-A; A- ;•
>•..
v,
,
.
Liberty Aircraft Products Corporation
Farmingdale, Long Island
Suppliers of precision parts to the Aircraft Industry
Volume 158
Number
4194
;.;.v.;.v.v.v);^vI£.;XyX£;
ssv^--.
/v-•£:*</>
»v.y.v >
W:
mmm
£$«&
Industry is helping win the
industry must help build
•
Fighting
;
now
Thinking
peacetime world
a
is winning the
war...
win the peace
now can
Today millions of service
world
war...
men are
fighting for "a better
live in." Other millions of individuals
to
are
fjjrj§
perform-
ing miracles of production through the united efforts of
;ij
and
management
wage
earners—all of
^unconditional surrender."
.
'
*.'•
>.<:*v./
"...
•.
;
;
-
_
•
•
•«•..
•.
•
*.•••••,
•
■•••
<
A>v;
■
.
ml
!,1
Wt
-
„
peacetime pursuits provided they—all of
If the world is
among
to
one
>V V.J
calling for sustained prosperity.
prosper,
there
must
be the
same
as
now
cohesion
exists during the world-wide conflict.
Internal stability here and in other nations
\
M
mind—dictate
the United Nations during the transition period and
V thereafter
■
|
can
be gained
and maintained only by sustained industrial production and
|||
,
V.
W**-
by economic interdependence.
I;'.
■,
The people of this country, in common with the people of
other lands, will
this
3
-
:
sound peace terms
I
;
-
r
<
Vp
mind—for ''an
,4? Tomorrow these millions will be permanently employed in
r
■
:m'V\I
-
one
war
scope,
THE
is
is
prosper
ended but
now
materially and spiritually when
only if insistence, world-wide in
voiced for A JUST AND DURABLE PEACE
INTERNATIONAL
NICKEL
Subsidiary of The International Nickel
New York,
COMPANY,
INC
Company of Canada, Limited
N. Y.
y&iWww'XvS.
■Sz|'S
iyi-Xy^w/.y;
vXyXX
V.V.VAV/.'.V.'AV. V,
§1
mmsm
yyXXyX
yysyXyX
Awarded to
Huntington Worke
mM
,
X........
"
,
-
XvX-
'
sttifrs'Xv&r.V.
m&m
y&yA
^Wv!;
THE COMMERCIAL
214
A series
of advertisements
Advertising Campaign
individual
produced unusu¬
adaptable to your own
available. These ads have
ally successful results by actual tests.
requirements is
lina.
The
Financial
only
can
be arranged—the cost
Chronicle, 25
is moderate.
Spruce St., New York
City 7.
the United States to any
from'p-
blocked'
country, other than China and the
blocked members of the generally
licensed trade area,
effective
which
IF YOU WANT
Salesman's Cornei
SOMETHING ASK FOR IT!
written on the subject of salesmanship that
if most salesmen who have the patience to
this one do not wonder if those who write about
So much has been
we
sometimes wonder
read columns such as
Aug.
25,
.and
such
within
The importa¬
more
the
important
to
which the
countries
blocked
"The
little story.
If you remember, some years
currency,
which
been
have
General License
No.
"Why has the inflationary
lations.
in
unless
Remit¬
tances to and from these excepted
areas
the
nevertheless subject to
are
past?
question will be plainer if it is re¬
lated to some of the earlier calcu¬
of the blocked countries to
which the ruling applies.
gap
grossly over-estimated in
The answer to this
so
the
such instruments have been with¬
in any
to say:
on
been
'general¬
53
Zelomek
comments Mr.
his
In
went
ly licensed trade area' as defined
in
be
soon
may
realized."
ruling does not apply to
blocked countries in the
provisions of Executive Order
OPA is¬
freezing
"More than a year ago,
its
sued
general
order
In the Statement of Con¬
that accompanied the
prices.
siderations
Regulation, a description of the
inflationary gap for 1942 was in¬
cluded.
Since this statement was
April
issued
28, it must be as¬
partial information
sumed that the
available then should have
great¬
8389, as amended.
Treasury ly increased the accuracy of OPA's
spokesmen also observed that the estimates. However, here is what
ruling imposes no new restrictions actually happened:
on remittances to and from China,
'During 1942
individual in¬
which
are
already
adequately come will total $117,000,000,000.'"
No.
Bank
of New York as fiscal agent of the
United States.
Persons arriving
in the United States on or after
over
or
instruments
1943.
after Aug. 25,
Among
not ap
since such im¬
portation is already restricted by
General Ruling No. 5.
-
This brings us to our
of the econo¬
time when their
a
predictions
direct
importation of securi¬
^
ties
by a prohibition on dealings in
financial instruments imported on
or
finan¬
abroad.
"It is to be noted that the im-
provisions are implemented
tion
of satisfying
prohibit,' portation "prohibi«o"ns" do
1943, the im¬
have, been
blocked countries.
means
cial needs while traveling
ruling applies are all enemy and
tried out their theories in actual practice.
enemy-occupied countries, Portu¬
This time we are therefore going to admit to a bit of our own
gal, Spain, Sweden, Switzerland,
experience which happened quite a few years ago when the writer and their territories and posses¬
first started out as a cub bond salesman.
sions, Tangier, Finland, French
It has always seemed to us that the toughest problem for most North and West Africa, and the
salesmen (no mattei4 what their line) has been in knowing when French Antilles.
to ask for the order and then asking for it.
Many times beautiful
The
Treasury's announcement
sales presentations are- made, desire is skillfully created by the use further stated:
of suggestion—and what happens?
Too often the best opportunity
"Any such financial instruments
for doing business is muffed right at the time that action should take
which have been within any of
place. This is an old, old story but we doubt if there are many suc¬ the blocked countries affected and
cessful salesmen today who wouldn't honestly admit that their per¬
which are imported on or after
centage of "call backs" and lost sales is still proportionately too
Aug. 25, 1943, must be turned
large.
"this secret weapon
discredited at
the best
the subject have ever
•
tionary gap has been greatly over¬
estimated. "As a result," he says,
checks, drafts, and similar negotiable instru¬ mist is now bedeviling its original
ments to blocked countries and restricting the importation of, and
exponents and providing false as¬
surance for the public.
The or¬
dealings in, checks and drafts which have been in such countries.v'
The regulations, identified as General Ruling No. 5A, prohibit iginators of this war-time inven¬
the sending or taking of checks, drafts, bills of exchange, promissory
tion, having cried wolf, are now
portation of checks, drafts, bills
of exchange, or promissory notes
The Securities
of the infla¬
the importance
that
ing the exportation of
notes, securities, or currency
Available to
one dealer in a state, but not in North and South Caro¬
First come—first served.
For details, write Box RR7,
Trial
public could understand it has also
contributed to the present feeling
Department on July 7 issued regulations prohibit¬
The Treasury
Desiring Successful
Thursday, July 15, 1943
CHRONICLE
Treasury Bans Export Of Checks, Drafts To
Blocked Countries—Also Restricts Imports
Opportunity For Investment Dealers
v
& FINANCIAL
to the Federal Reserve
"
controlled
under
existing proce¬
Income to individuals was
dures.
"Treasury officials called atten¬
tion to the fact that the ruling sets
actually
this
at $116 billion, so
was
good.
" 'Of
reported
estimate
this
$31,-
amount, it is estimated that
exemptions for cer¬
tain categories of checks, drafts,
and bills of exchange, unless such
forth specific
000,000,000 will be saved or paid
to the Government in taxes.
The actual results are reported at
before the advent of the "more abundant life, etc.," we used to
instruments are destined for or $34 billion, so that this estimate
have something in this business which was then called "new issues."
was not bad.
" 'During 1942, the
In those days it was the rule for every up and going securities firm Aug. 25, 1943, will be required to have > been in enemy territory.
(of available goods and
There are thus left open certain supply
to hold sales meetings where all the highlights and pertinent selling
report and surrender such instru¬
services)
.
will total $69,000,points were covered by the sales manager, whenever we had a "new ments to the collector of customs channels through which travel
000,000.'" This supply has since
issue" to offer.
There wasn't much that we didn't try to soak in at the port of entry, who will de¬ may be financed and legitimate
been reported at $82 billion, which
during those days when the spark of industry and ambition was liver them to the Federal Reserve trade and financial transactions
shows plainly where the main er¬
burning pretty high. Evenings were spent in burning the midnight Bank of New York. The Treasury effected between countries in this
ago,
.
.
made.
ror was
statistical manuals to "How To Become has stated that it will not be its hemisphere and neutral blocked
"OPA concluded that 'demand
Salesman" in 10 easy lessons. Meanwhile our days
European countries.
The except
policy to license the exportation
tions include non-negotiable bank in 1942, unless limited, will exceed
were filled with interviews but despite the fact that some of the
or importation of, or dealings in,
supply by $17,000,000,000.' Goods
rough edges did wear off a bit«—we didn't break any sales records.
checks or drafts which are af¬ payment orders; incoming travel¬
and services, however, turned out
ers
checks; outgoing travelers
Then one morning "came the dawn."
We have a hard-boiled fected by the rulings.
to be $13 billion greater than ex¬
checks carried by and issued. in
sales manager and at times he didn't take particular care of what he
"The export restrictions, which
pected; this alone accounted for
said nor how he said it.
This morning he called a meeting on the are immediately operative, are a the name of persons departing
an error of 76% in this April esti¬
the
United
States
for
subject of "Call Backs." After • his usual warmup which this par¬ continuation and implementation from
mate of the inflationary gap for
blocked countries; outgoing
ticular morning was about 10 degrees above his normal boiling of existing prohibitions.
Atten¬
1942.
Treasurer's checks carried by and
point he let loose with this story.
"Some of you fellows look like tion is directed to the fact that
"There
are
two reasons
for
the best salesmen in the world until it comes time to ask for the persons departing from the United Treasurer's checks carried by and
OPA's mistake. One was failure to
order.
Then something happens and you fold up like a tent.
In¬ States are prohibited, except issued in the name of a person in allow
sufficiently for the large
the service of the United States
stead of bringing in the order you come back and tell me—he's under
specific Treasury author¬
inventories that still existed,, on
Government; outgoing currency
thinking it over and will let me know."
f
ization, from taking with them
which consumers could draw in
"All this reminds me," he went on, "of the English sailor who any securities, currency, checks, valued at $50 or less carried for
oil, reading everything from
-
A Successful Bond
,,
was
visiting some friends in America for
the first time.
One evening
attending a very formal dance. Every
time the sailor would dance with another girl, the dignified gathering
would be treated to the spectacle of seeing him receive a resounding
the sailor and his friends were
drafts, or promissory notes which
destined
for
any
blocked
are
traveling
drafts
or
expenses;
incoming
bills of exchange drawn
The more
meeting their demands.
important one was failure to allow
for the extent to which consumers
under letters of credit; incoming
affected by the ruling,
were
'trading
up',
purchasing
required to report the drafts or bills of exchange drawn higher price and better quality
importers
in the Western merchandise.
slap in the face. Finally one of his American friends asked what was possession of any such instru¬ on
For example, in
the trouble.
Unabashed the English Tar replied, "Nothing much, I ments or currency to the collector Hemisphere in connection with one year consumers may buy one
just ask them all for a kiss." "You can't be so forward in America," of customs at the port of exit. the importation of merchandise $10 dress for every three $5
his friend replied. "American girls are not accustomed to that quick However, it was stated that any into the Western Hemisphere; and dresses they purchase. If because
approach. That's why so many get insulted." The Englishman didn't person leaving the United States incoming checks, drafts, bills of of rising income they buy these y*\
hesitate a moment in replying, "Sure I know that but you'd be sur¬ for any blocked country affected exchange, or warrants drawn on items in the proportions of two
the Secretary of State, the Secre¬ and two in the following year, this
prised how many don't!"
by the ruling (except countries
And that was the answer.
Ask for it! That's the lesson we can constituting enemy territory) is tary of the Navy, or the Treasurer shows up as a 20% increase in
of the United States.
The excep¬ dollar sales. However, price in¬
all learn over and over again.
Ask for the order. If you don't ask authorized to take out currency of
tions, it was emphasized, do not dexes show no gain, and the un¬
an equivalent of $50 in value and
you can be sure you won't get it—but you'll be surprised how often
travelers
checks issued
in his obviate the necessity of a Treas¬ wary economist jumps to the con¬
you do.
clusions that unit sales to the con¬
name, and that such items need ury license with respect to trans¬
not be reported to the collector of actions within the scope of Execu¬ sumer have fully kept pace with
country
and
are
customs at the port
tive Order No. 8389, as
such items
or
What
a
treat...
At
indirectly, for enemy territory.
the same time it was pointed
out that since there are many re¬
strictions
on
save
it
of United
outside the United
the
States currency
I'll
amended,
but
of exit, unless
destined, directly
are
use
merely exempt the instru¬
ments referred to from the special
restrictions of the ruling.
checks, letters of require a license specifically re¬
telegraphic transfers are ferring to General Ruling No. 11."
rate.
is
"This
the
a
inflationary
right in
in
situation
which
the other exponents
and
OPA
have
gap
detail.
credit,
effective
anti-inflationary
have been the large volume
accumulated
ventories
for
special
occasions!
SCHENLEY
Most Critical Period With
Inflation Danger Becoming Real, Says Zelomek
Price Control Facing
The
conclusion
that
"price control still faces
was
that has been
over-estimated in the past is now
becoming real."
He further de¬
the inflation danger
ROYAL RESERVE
its most critical
emphasized on July 7 by A. W. Zelomek, Economist
of the International Statistical Bureau, Inc., and Fairchild Publica¬
tions, who at the same time stated that "with inventories reduced,
production for civilians below the unit volume of sales, and the
desire of consumers to spend more dollars for the same amount of
goods limited by OPA regulations,^
period"
public to the real danger
of the next twelve months."
According to Mr. Zelomek "the
and the
of
been
principle and wrong in
To date, two of the most
States, travelers
or
thus
liquidating inventories at a rapid
It was
stressed, moreover, that transac¬
tions
involving trade or com¬
munication with enemy nationals
rise in the dollar totals,
the
in
forces
of in¬
1941,
when
production for civilians was
at
all time high, and the trad¬
an
ing
tendency of consumers,
kept changes in unit
at a minimum despite the
up
which
sales
has
in dollar totals.
stocks have been
greatly reduced; by the end of the
year they will be well below nor¬
mal.
Futhermore, although con¬
rapid
increase
Now, however,
sumers
still demand
a
better qual¬
ity of merchandise, OPA limita¬
on
the highest price lines
tions
that
can
having
a
be produced and sold are
restraining effect.
This
price ad¬
clared that "it would be most un¬
vances
will be accelerated has policy of price line limitations is
fortunate if the bad publicity the
a
basically
unsound
principle,
been exaggerated by faulty esti¬
danger
60% grain neutral spirits.
Blended whiskey, 86 proof. Schentey Distillers Corporation, N. Y. C.
inflationary gap has been receiv¬
ing
as a
takes
result of these earlier mis¬
should
blind
businessmen
that war-time
mates of the
inflationary gap." He
to explain this
that businessmen and the
states that failure
term so
tending to weaken
important
weapons."
one
anti
-
of the most
inflationary
iVolume 158
Number 4194
THE COMMERCIAL & FINANCIAL CHRONICLE
"Our Reporter On Governments'*
American Car 8
Foundry Co. Reports
Hel Of $5,055,719 For Year
By S. F. PORTER
And
that the June financing is just a pleasant memory to
all investors who obtained the securities, to all dealers who
got in
on the deal and to all
representatives of the Treasury, the endless
now
President
215
need for
purposes
of the
ma¬
steel
and
other, which
must enter into their
construction.
There
cars
Hardy Comments On Post-War Period
war
terials,
is
are
no
question that these
needed by the
roads, and
undoubtedly the necessary clear¬
ances to permit of their
building
1943, made public will be
topic of conversation in the bond crowd of Wall Street is "why?"
forthcoming just as soon
July 13 by Charles J. Hardy, president, shows net earnings of $5,055,- as the
'Why did the Treasury throw the issue open to all subscriptions,
exigencies of the military
publicly remove the usual limitations on orders and plainly invite 719, after all charges including interest, depreciation, amortization, effort will permit.
Meanwhile, as
and provision for estimated income and excess
profits taxes.
This above
people with information to subscribe to the limit?
Why did
indicated, your company's
compares with net earnings of $9,275,377 reported for the previous
Secretary Morgenthau, in short, "ask" for it?
facilities for the manufacture of
fiscal year and is equal to
$5.05^
railroad equipment
This observer intends to avoid the subject of free riding
are, and in all
per share of common stock out¬ 362,272.
For the year ended April
probability will for some time to
by institutions or individuals from now on—unless a change
,
.
.
.
.
.
annual
for
the
.
.
.
.
.
standing against $12.09
share
mon
for
the
profit.
;
...
the
simple
that he
reason
this relative¬
success on
ernments.
an
:
.
And
make
impression
advantages of being active in Gov¬
all who had lost track of the
on
wanted to
need no elaboration on the elementary rules of
psychology to know that nothing succeeds like success.
Nothing
brings a little banker into the market or a wealthy individual into
the list quicker than the knowledge that there's money to be made
you
.
—and fun to be had.
If
1
minute
act?"
.
and
then
.
is
snatching
idea
an
able
that
im¬
figure, "how did
I and
my
.
.
before
there
thing this financing did
this
possibly
Hardy
.
SHARP REVERSAL
between
-
issue
the
and
bring into the open vthe
was
last
one
October.
.
.
When
.
of
will
our
from
come
own
country
insistent that
even
then,
the
roads
demand,
a
so
compliance with it
Production Posters
War Output Intensified
and
peace
Charles J.
There's your answer.
contrast
abroad.
NAM Booklet On War
stockholders further stated:
mediately fol¬
lowing the
of the air, wait a
fellow investors re¬
out
"During the
...
Another
here and
use
hand
on
.
.
think this
you
.
The report shows cash in banks
and
continue to be, largely en¬
come
gaged in supplying the demand of
the Army for
rolling stock for its
amounting to $24,"Fortunately
your
company,
"renegotia¬ 612,257; U. S, Government bonds,
because of the size, location and
tion" of Gov¬ treasury bills
and treasury tax
equipment of its various plants, is
ernment
con-; notes,
at cost, $73,619,110; ac¬
in position to respond
efficiently
tracts
has counts
receivable, less reserve, and
promptly to such demands as
been adjusted $18,553,785; notes
receivable, less
may be made upon it, whether
to $7.28.
reserve, $2,447,204; inventories at
that demand be for the
produc¬
;
In his letter cost or less, and not in excess of
tion of materials of
war, offensive
to
stockhold¬ present market prices, $48,078,and
defensive, or for vehicles of
ers
accom¬
272; advance payments to ven¬
transportation for military and
panying
the dors for materials contracted for,
other use."
:7-;report
Mr. $281,656; and marketable securi¬
Hardy said:
ties, at cost or less, $1,643,504.
"It is prob¬
Mr. Hardy in his remarks to
.
For
$56,553,484.
but this latter
-
To put it succinctly, he wanted an all-out
ly insignificant $2,500,000,000 offering. ?
*
30, 1942, total current assets were
$95,923,736 and current liabilities,
of
to discover again the joys of making a quick
ones
com¬
ended
figure because
...
and the small
per
year
April 30, 1942,
"color" of tremendous buying, minor allotments. . ;, He wanted
the "excitement" that accompanies an operation of this kind.
He wanted the big bbys to know they were not forgotten
;
report of American Car and Foundry Co. and
fiscal year ended April 30,
.
occurs in the situation that demands attention.
But since
free riding is a main topic of talk among traders still, maybe the
answer to the removal of restrictions is that Morgenthau wanted
this issue to be terrifically oversubscribed. . . .
lie wanted the
'
The 44th
subsidiaries
of
your
iaries
the activities
year
and its subsid¬
prime producers of ma¬
company
as
terials of warfare for
Govern¬
our
ment—combat
tanks, armor plate,
shells, bombs, fuses, valves, metal
containers for the transportation
The
National
Manufacturers
Association
its 9,000 members
Production"
of
July 6 issued to
on
"Posters-For-
a
booklet
containing
reproductions of 70 morale-build¬
ing posters chosen as "truly rep¬
will
be
imperative,
for
new
Morgenthau offered an identical note issue carrying a V/z% rate, due
resentative of our war
effort."
equipment
by
in slightly more than four years and some 2% bonds due in 10
way
of
rolling of chemicals, minesweepers, light¬
years,
The posters were chosen
from
stock to replace that
callable in eight.
destroyed ers and other vessels for naval
approximately 1,000 submitted by
or
worn
out beyond repair by
The lV2s sold this time were the same type of security.
use
besides
an
almost infinite
700 companies in the nation and
But in October, Morgenthau shocked us all by giving us a 2% reason of the heavy and continu¬ variety of miscellaneous
supplies were judged
by a committee of
ous
service given by the roads
bond when he had let nearly all investors expect a 2V4.
—have continued at an intensi¬
He made
three, non-members of the NAM.
during these years of national fied
a bad mistake in timing and
rate.
psychology by announcing that 2% was
Additionally,
your
They were Frederick C. Ken¬
It is probable also
to be the maximum rate on 10-year obligations from October on. emergency.
company has been called upon to
He permitted himself to be placed in the position of needing that, with the coming of peace, produce, for Army use both here dall, Editor "Advertising & Sell¬
there will devolve upon our Gov¬
and abroad, a very considerable ing"; Dr. Robert Leslie, an execu¬
desperately the support of the Federal Reserve System and of having
tive of The Composing Room, Inc.,
to promise bankers who subscribed that he would take whatever ex¬ ernment the major part of the number of cars of different
kinds,
task of
cess they had off their hands.
rehabilitating those coun¬ comprising flat, tank, kitchen and and Tudor H. A. Tiedemann of
The Federal Reserve owned $535,...
.
.
.
...
.
.
.
.
.
.
000,000 of the Vfcs (an issue which suffered along with the 2s during
that deal) at the end of 1942—a perfect indication of how much sup¬
port
was needed.
But this time,
,
Morgenthau gave the banks what they wanted—
the first note to be sold in months.
It He didn't let
"money curve" has been accepted
the
coupons.
And the
the 1 Vz s
on
.
.
.
.
.
.
now
(2)
(3)
V/2%
(4)
2%
(5)
V/2%
.
.
point premium
discount bills, due in 90 days.
on
one-year
.
on
.
quoted
now
.
bonds due in 25 to 30
now.
remain
.
stock
.
But there's
.
beautiful
so
no
and
be
the
.
such
motive
time
are
estic
.
the foreign indus¬
sufficiently
re-estab¬
as
care
for their
needs.
Your
ing forward to
a
in
activity
.
time.
dom¬
own
.
Admittedly,
.
.
war
Management
justified, therefore, in look¬
sified
.
of
until
power,
.
.
.
.
systems
.
with extreme
to believe the situation always
reason
comfortable.
will
the
equipment, both rolling
and
.
.
years.
at this
sense
eco¬
transportation — and
this
un¬
doubtedly will require the mak¬
ing here for use abroad of the
feels
.
of
.
.
certificates of indebtedness.
four to five-year money.
bonds due in 10 years.
on
it doesn't make too much
ease
rehabilitation
lished to
.
Morgenthau is getting the cash he needs for the
will
of
restoration
tries
curve," here it is.
There's some gossip around about a shaving of these rates on
the coming financings but that's definitely in the
gossip class. . . .
And
first
necessary
.
on
on
and
of unparalleled warfare. Of
importance in that process
years
.
%%
7/h%
industrial
,
Money is plentiful.
The
and investors are willing to
.
oversubscription plus the
tell the tale.
.;
As for that so-called "money
(1)
the financing until the
on
the deal, he also revealed the
announce
of subscription restrictions.
And the market was strong. . .
removal
take
whose
nomic life has been disrupted and
shattered by the impact of these
...
information nut
any
last minute but when he did
tries
the manufacture
road
—in
period of inten¬
the industry—
and sale of rail¬
equipment and rolling stock
which
company
for
many
has held
years
your
commanding
a
position."
"Complacency" still
Sales and Financial Position
is a great danger on anyone's side.
And the money curve has
Gross sales, less discounts and
just been established.
Shifting it—except in a minor way—would allowances
aggregated $289,275,probably be most unwise now.
689 for the
.
.
.
.
.
.
.
.
year
sales
Analysis of Government bond holdings of banks throughout the
reveals some highly intriguing points.
United States this past week
For instance:
(1) Due to the fact that excess reserves now are virtually con¬
centrated in banks in the interior, banks outside of New York City
have been increasing their holdings of Governments at a much
v
faster rate than banks inside the financial center.
This is considered
the Treasury.
excellent
an
It should—and
...
trend and is
.
.
.
being sponsored by
doubt will—continue.
no
.
.
...
.
.
.
...
return
interest.
Under
Federal
Reserve
ruling, they may be
Or, of course, may be
sold in the market.
Result is bills constitute a fund of secondary
reserves
and banks in New York are operating smoothly despite
decline in their primary reserve funds.
(3) Banks throughout the country are constantly increasing
their percentage holdings of intermediates and longs.
In com¬
parison to shorts, longs are way up.
Although gains in holdings
are reported right down the line,
the percentage figures show this
preference clearly.
A most important point.
(4) Comparison of issue totals available to banks and gains
in holdings shows banks have been heavy buyers in the open market
in addition to heavy subscribers to all types oh offerings at new
.
.
.
turned into Federal Reserve at any time.
...
...
...
...
.
...
issue dates.
.
.
.
/
.
.
.
/*
.
.
';7- '
INSIDE THE MARKET
Fairly large-scale selling has been going on in the new IV2S re¬
Offset by buying originating among bankers eager to
cently.
new
of
and compare with
of
$216,336,568 in the pre¬
Company entered the
fiscal year with a back log
ceding
year.
business
of
$350,000,000,
largest in its history.
The
consolidated
balance
the
as
de¬
cars
representative,
time
in
its
has required
increase
sheet
of the company and its subsidiar¬
as of April
30, 1943 shows total
current
total
assets
current
history, naturally
a
considerable
very
of facilities
and
person¬
of
Malcolm
NAM's
mittee and publisher of "News¬
week," who said that "interest in
been
careful
to
to
see
neither
facilities
has
the
expansion
the
limits
and
in
personnel
been
dictated
sound
it that
nor
by
beyond
prudence
business
a
tion
organiza¬
ability needed for their
the
successful
solution.
business, that having to do with
building of equipment for the
the
difficult.
its
to
,
been
Your
books
which
for
a
number! of
it
has
because
are
has
on
of
very
con¬
new
been
cars,
unable
lack
of
governmental
necessary
con¬
still;
and
company
orders
orders
fill
country, the
our
have
.
.
.
.
form, with
others either the
design, artwork,
the posters themselves has been
most
encouraging expression of
industry's cooperative attitude,"
the
clear¬
.
.
.
foreword
a
of
.
.
list
will
be
under
...
on
pressure
A
over
reaction,
good.
.
.
and woman in every plant and
factory must be inspired with the
will
win—and with the
to
produce to the utmost of his or
her ability.
Under the American
way of life they cannot be com¬
manded
work
to
that
harmoninously."
The
reproduced posters were
by companies from 12
submitted
States.
?
Mme Chiang Back Home
Mme.
Chiang Kai-shek, wife of
Generalissimo, who had
China's
been
on
United
an
extended
States
and
turned to China
taxables.
...
.
.
.
of the
re¬
July 4 aboard
on
The
was re¬
Chiang had
States
since
been in the
Novem¬
last
ber when she arrived for medical
,
.
.
a
.
.
.
tour
Canada,
American transport plane.
Mme.
percentage
surplus.
As customary in the past.
Individual subscriptions in future to be restricted
by deposit require¬
ment of 10 or 50% on
order, says same dealer.
Would curb free
riding, not eliminate it.
Elimination being considered un¬
desirable.
an
United
One dealer forecasts next
regular market issue will be restricted
...
hour
ported, took less than a week.
or correc¬
.
subscriptions to
extra
turn out that extra part—they
must want to do it voluntarily and
or
trip back to Chungking, it
coming
tax-exempts into taxables and vice versa
with savings banks and insurance companies supplying
to banks and banks will be limited in
of their capital and
desire
to
from
the exempts and commercial banks
supplying the
booklet,
.
.
weeks with "approval" of authorities.
tion of any nature would do this market
Switches
.
the
the NAM stated that "every man
..
.
more
"The willing response of the
originating companies to offer to
In
"In the field of purely domestic
railroads of
these
Mr. Muir wrote.
Unable to Fill Domestic Business
ditions
booklet
widespread
posters
so
— including
the
availability of these poster ideas
to other companies."
I
or
own
was
decided
complete '' data
in the limits of
our
was
\enient
judgment.
While the problems arising, and
which are of practically daily oc¬
currence,
have been many and
complex, yet we have found with¬
.
that
Com¬
it
$169,235,788 and ances to permit of their construc¬
liabilities of $144,- tion—this because of the
urgent
around
Muir,
War
exhibit
going on.
Coming from
now getting into excess
profits bracket and need¬
ing exemption from partially-free bonds.
The 2%s of »1965-60 still
a
favored bond, still being bought
by investors knowing market
trends.
Issue at 112.24 against a low in 1943 of 108.24.
Mar¬
ket range is terrific.
Talk
accompanied
was
from
the
commercial banks
going
Chairman
repro¬
should be reproduced in this con-
.
.
booklet
letter
a
not
were
booklet.
that
of
.
in the
The
by
Counsellors,
nel. While recognizing the neces¬
sity of this, your management has
round out portfolios of notes and to raise totals obtained on allot¬
ment date.
Issue holding well at % point mark with
high of
100.20 reported at one time
immediately after offering day.
.,.
Consistent buying of tax-exempts
.
duced
has done and is doing—
company
Relations
Five other posters chosen as
on
greater by far than at any previ¬
ous
Industrial
Inc.
hospitals
as
"The vast amount of work your
siderable
ies
.
(2) New York City banks substituting holdings of bills for ex¬
reserves.
Surplus funds held by New York institutions are
down to zero, below zero at times.
But banks are continuing
to be fully invested and to buy heavily through manipulation of their
bill accounts.
Bills are equivalent of cash, except that they
cess
well
as
wheels.
.
REDISTRIBUTION
.
cars
signed to be used
.
.
..
gondola
.
.
treatment. Early
the
guest
of
this
the
year
she
President
was
and
Mrs. Roosevelt at the White House
and later toured the
country mak¬
.
ing
addresses,
cities*
in
the
principal
She also visited Canada.
Thursday, July 15, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
216
,
Foreign
J earth of
bombed
In 1942 debt service
Bonds," issued July 6
Bought—Sold—Quoted
announcement^
Institute's
the
of
default
"The
Incorporated
Japanese
issues and the suspension
"Data
the status of all
on
matured bonds by some ob¬
ligors are responsible for the re¬
duction in the proportion of bonds
Teletype NY 1-920
Dec. 31,
Dec.
Debt
Per Cent
(000,000)
Percent
$3,190.2
56.38
$2,789.6
50.07
to
interest
2,427.2
42.90
2.664.0
47.81
to
sinking
40.6
.72
118.0
2.12
$5,658.0
100.00
$5,571.6
100.00
as
In
WILLIAMS
default
default
as
fund
Total
gratifying to see the more conservative elements in our
of Canada's effective contribution to
the war effort of the United Nations.
Such recognition is bound to
lead to closer harmony and greater cooperation in working out post¬
is
It
27.1%
while
America
for
opening up the vast North West Territories.
The
following
well-deserved<S>tribute to the Canadian war effort that the freezing of rents came
within the scope of this principle.
appeared in the latest issue of the
and
of
1942
Europe
defaulted bonds, as com¬
of total
involving Canada's capital needs in
problems, particularly those
Latin
accounted
41.8% and 43.8% respectively
end
the
"At
financial community take note
With 47.7% and 47.8% on
Dec. 31, 1941.
On the other hand,
the Far East accounted at the end
pared
of
1942
10.9%
for
of
total
de¬
and
31.0%,
German
respectively,
issues
52.3% of total European
bonds.
of
the
Far
defaulted
On Dec. 31, 1942, 80.6%
70.8% of the
European,
bonds
Eastern
New York's five
represent
Latin American and 55.4%
of the
in
were
the
"the amount of
31, 1942
paid in full
service
In
•,
salvage and
statement declares,
good done will far
outweigh the dollars we give. By
strengthening our friends every¬
where, we weaken our enemies
everywhere,
and thereby con¬
tribute 1 toward
winning
and
shortening the war."
v
•
-
morale,"
,
1941
(000,000)
Canadian Securities
"In terms of human
our
allies.;"
fighting forces and our
31, 1941 and 1942 are
summarized v in
the
following
of
needs
human
the
meet
of Dec.
table:
coordinated campaign 1 "to
single
pub¬
licly offered foreign dollar bonds
as
are
port of
16 major war-related
agencies united for the first time
in the history of this war, in a
in
56.38%
ing fund payments and failure to
New York 5
included in the Na¬
tional War Fund's appeal for sup¬
1941.
of sink¬
pay
war
from
similar
other
and
these
causes
~———
■
full
in
armed
own
our
marine and
overseas."
Allies
bur
All
University.
.
Serviced
further states:
Wood, Gundy & Co.
for
Madden, Director of the
by Dean John T.
Institute of International Finance of New York
The
By BRUCE
for hundreds
and merchant
forces
"Statistical
entitled
for
aid
timely
$2,789,563,473, or on
on
total of $5,571,578,318 of publicly offered foreign
outstanding on Dec. 31, 1942, according to a bulletin
Analysis of Publicly Offered Foreign Dollar
bonds
dollar
had been paid in full
the
of
50.07%
AH Issues
Bell System
indomitable
of
homes
of thousands of homeless refugees;
Dominion of Canada
14 Wall Street,
stricken" ,China and the
assistance
Britain;
de¬
fault.
boroughs will
contribute al¬
most $17,000,000, including $14,875,000, or 11.9%, as this city's
share of the national goal.
More
than $1,000,000 of the local goal
is for support of the New York
called upon to
be
"The geographical distribution City Defense Recreation Commit¬
Government simply faulted bonds as against only 2.1%
present on Dec. 31,; 1941.. Of the total of foreign dollar bonds in default tee, now serving upwards of
economic conditions, now was the Latin-American bonds in default, as to interest on Dec. 31, 1942, is 1,000,000 service men each month.
;■ dian business activity is indicated.
The balance
of the New York
Brazil
and
Mexico
account for shown in the following table:
The official index of the physical time to bring the moratorium to
Amount in
Per Cent of Total
goal is to finance the work of
Amount!
volume of business, seasonally ad¬ an end.
Default
Defaulted
certain
other local war-related
Outstanding
The whole situation strikes a
justed, stands for April at 236.9%
(000,000)
Bonds
(000,000)'
agencies whose applications for
$1,112.9
41.8
"of the 1935-39 average, marking welcome but unfamiliar note to Latin America
$1,572.5 !
membership are now before the
1,166.0
43.8
American ears, long accustomed Europe
an interrupted advance from 195.5
1,446.9 f
289.3
10.9
New York Admissions Committee.
Far
East
522.7 j
in May, 1942. The index of indus¬ to the paternalistic strains of New
95.8
3.5
North America
2,029.5 i
The fund-raising
campaign is
trial production has risen corres¬ Deal practice and propaganda.
100.0
scheduled to start Oct. 1, and will
$2,664.0
Total
-r$5,571.6
pondingly from 217.3 to 274.4.
terminate Dec. 7, 1943, the second
2.78%
as
constituted
J "The coupon rationing of meat
"An
analysis of interest de¬ received
contractual anniversary of Pearl Harbor. The
.'that became effective May 27 has
faults by types of obligors shows against the average
money
raised will be used to
rate of 5.26%.
The amount re¬
unusual significance.
Having asthat 48.5% of the national gov¬
finance the programs of the War
'sumed a major task of supplying
ernment issues, 31.8% of the is¬ ceived in cash for 1942 coupons Fund
agencies through October,
food—besides vast quantities of
was
45.2%
of the
contractual
The Bank of Montreal, in its sues of the States, provinces and
1944.
Besides the USO and the
amount due, as against 52.7% in
weapons, ammunition and related
departments, 52.2% of the munic¬
current crop report, dated July 8,
New York City Defense Recrea¬
"war
materials—to
Britain
and
1941.
While interest was paid at
ipal bonds and 53.8% of the issues
states that "in the Prairie Prov¬
tion Committee, the agencies in¬
-other associated nations, the Do¬
of corporate borrowers were in the contractual rate on all Aus¬
clude: United Seamen's Service;
inces, crops generally continue to
tralian issues and practically all
minion, by thus limiting domestic make
default at the end of 1942.
War Prisioners' Aid; Belgian War
good progress, with the best
;( consumption of its abundant supCanadian bonds, Europe paid at
"The actual rate of interest re¬
Relief Society, Inc.; British War
prospects in Manitoba. The
the
rate- of
1.01%
and
Latin
plies, manifests the national pur¬
bank's' report further said:
turn
in
Relief Society, Inc.; French Re¬
1942, representing the
America 1.24% against the aver¬
pose to ensure, with evident sac¬
"While the season is about 10 amount of cash interest received
lief Fund, Inc.; Greek War Relief
rifice, the meeting of all its comage contractual rate of 6.10% and
days later than average, higher for 1942 coupons on the nominal
Association, Inc.; Norwegian Re¬
mitments.
The rationing, it is
5.43% respectively.
...
temperatures during the past two amount of publicly offered for¬
lief, Inc.; Polish War Relief, Inc.;
estimated, will effect a reduction
"The contractual amount of in¬
weeks
have
promoted
rapid eign dollar bonds outstanding at
Queen
Wilhelmina Fund, Inc.;
of 20% in the home consumption
growth. Wheat is coming into shot the end of the year, was 2.37% terest due and the amount re¬ Russian War Relief, Inc.; United
of meat."
ceived for 1942 coupons of bonds
blade and in some districts earlyas
China Relief, Inc.; United Czecho¬
compared with the average
sown
crops are heading.
Coarse contractual rate of 5.25%.
In outstanding on Dec. 31, 1942, are slovak Relief Fund; United Yugo¬
Of perhaps even greater signifi¬
grain shows healthy, even growth. 1941, the amount of cash interest shown in the following table:
slav Relief Fund; Refugee Relief
cance than the steady rise in mar¬
Contractual:
Average
Actual
Moisture conditions are satisfac¬
Nominal <
Trustees and U. S. Committee for
ket prices of Canadian GovernAmount of ; Contractual
Amount
Amount
Average
tory in Manitoba, but good rains
the .Care of European Children.}
Interest Due j
Rate of
Received
Rate of
Outstanding
(ment and provincial bonds as a
are
required in many parts of
(000)
Interest Due %
"(000)
Return %
(000)
measure of the basic improvement
5.43 ' ' 1
$19,452
1.24
Saskatchewan
and Alberta,
in Latin America
$1,572,469
$85,420
The
Guaranty Survey:
"Continuing expansion of Cana-
Quebec
contended that in view of
'■
—
-
Canadian Crops Are
Generally Progressing
"
■
.
in
internal econ¬
the Dominion's
is the recent ending of Que¬
bec's moratorium on real estate
omy,
mortgages,
in
since
effect
The law was abolished on
1933.
July 1,
districts of which deteriora¬
some
tion
already
has
and
hail
from
in. Losses
have been
set
pests
Sugar beets in Alberta and
are
progressing favor¬
small.
Manitoba
1943.
North
—
America
—
88,284
522,651
2,029,525
28,981
89.872
5.55
$292,557
5.25
$5,571,578
Total
"The Institute has
•
obtained in¬
4.43
.
r*
11,596
1.01
2.22
86.496
4.26>
'14,577
6.10
1,446,933
Europe ______
Far
East
.
*
$132,121 •
'
'
2.37
*
in
action
Government's
minion
freezing of all rents as of October
1941. "
,
:
They
failed
either
-
to
their
took
and
Ottawa
both
carry
their
to
case
Quebec
but
point
in
instance.
the Dominion Gov¬
sacrifices
be made in wartime and
In answer,
ernment contended that
had
to
N. Y.
Community Trust
of
any
nounced
We
specialize in
zations totaled
with
-
Municipal
Corporation Securities
'■•••
•
©
■
;;(>
; >
six
$221,285 in the correspond¬
months
49
Wall St.,
New York 5, N. Y.
WHitehall 3-4784
Tele. NY 1-2675
of
In its first
1942.
existence
in
1924,
the Trust made philanthropic out-
payments
gregate
made
H. E. SCOTT CO.
98 organi¬
$223,624, compared
ing portion of
Government
is
During
totaling
of
the
The
ag¬
subsequently
$3,728,552.
the
second
compared
same
$20.
grants
now
this year the Trust
988,
which
* * * through the accepted media
e
would work
tirely
information,"
of
had
and
sus¬
pamphlets
and had scrapped its
pended issuance of all
and posters,
service
field
entirely.
"OWI will not issue any
printed
are
prior year, it is an¬
Disbursements to
tor.
of countries
by Ralph Hayes, Direc¬
,
CANADIAN
Director of the
paying in¬ developments of importance to matter directly to the public," Mr.
terest in accordance with the loan holders of foreign dollar bonds, Hoyt said.
contract.
including an analysis of the offer
The advisory committee, ac¬
of servicing the defaulted eleven
The
New
York
Community
"Germany
and Japan, which
cording to the Associated Press, is
bond issues of the four Colombian
Trust, whose operations began 20 are in complete default of debt
made up of the following:
Banks, made by the Agricultural
service, account for over 62% of
years ago, made larger charitable
Roy Roberts,' managing editor,
total principal amount of bonds Mortgage Bank, and the Mexican
appropriations in the first six
Government offer to resume debt Kansas City "Star;" Lawrence L.
lepatriated. These two countries
service on its external loans.
months of 1943 than in the initial
have repurchased $243,020,400 and
Winship, managing editor, Boston
half
v
Hoyt,
Palmer
Policy
$195,181,080 of face amount of Office of War Information's do¬
bonds, or 36.57% and 68.77% re¬ mestic
branch, announced on July
spectively, of their dollar issues
6 the appointment of an advisory
publicly offered in the United
of
nine
newspaper
States.
In contrast, however, to committee
Mr. Hoyt also disclosed
the German repatriation, which, editors
was carried out mainly during, the)...
ably. In the Province of Quebec,
formation on repatriation or pur¬
legislative intervention now
the season continues to be back¬
between
the
mortgage
chases by foreigners of issues of
ward and frequent rains during
22 countries out of a total of 39
(holder and the owner of real es¬
the
past fortnight have caused
tate on which the
mortgage is
countries still having dollar bonds
further delay in operations, as
held.
Failure to meet interest or
outstanding in the United States.
well as considerable damage in
At the end of 1942 these 22 coun¬
capital payments on mortgages in
nfctny
districts.
The
yield
of tries had outstanding $2,720,536,- period the country was in partial Quebec province now means foregrains will probably be below av¬
or
total default on interest and
Closure by judicial sale.
668 principal
amount of dollar
erage.
Cutting of a good crop of
sinking-fund payments, the re¬
As might have been expected,
bonds, of which bonds with a
hay has commenced in most dis¬
value
of
$704,407,035, or patriation by Japan took place
proprietors of mortgaged prop¬ tricts. Pastures are in very good face
while service of the bonds was
25.89% of the outstanding amount
erty made every effort to have condition."
were held abroad.
Only $52,931,- fully maintained."
the moratorium continued until
The Institute also; notes that
after the
war.
800 or
7.51% of the total re¬
They cited as
.ground for this request the Dopatriated amount represent bonds the bulletin also discusses recent
No
exists
To
Newspaper Editors
Advise OWI On
period
quarter
$106,016
a year ago.
Appeal For $125,060,609
Seen Benefiting Estimated Sixty Millions
i
National War Fund's
people in this and others of
of this Fall's National War.
paign, according to figures compiled by the New York
More
than
60,000,000
Nations will be beneficiaries
of which Emil Schram
of
in
the United
Fund cam¬
Committee
is Chairman.
of
,
state¬
under
to¬
gether for Our Men and Our Al- own fighting men; comforts for
lies."
It explains that a total of the 'barbed wire legion' of pris$125,000,000 is needed to provide oners of war; food for
"support for the far-flung USO— Greece; medical supplies
the home away from home for our lant Russia; aid for the
starving
for galscorched
George
W;
editor,
managing
Healy,
Jr.,
Orleans
New
"Times-Picayune;" Paul Bellamy,
editor, Cleveland "Plain Dealer;"
Mark
ville
Ethridge, publisher, Louis-.
"Courier-Journal;" Gardner
Cowles, Jr., .editor and publisher,
Des
potential beneficiaries is contained in a
ment made available July 12 by the New York Committee
the title "New York
Gets To-<S>
:.
1—:—.. . (. „
This estimate
.
paid out $147,-
with
"Globe;"
Moines -"Register
and
Tri¬
bune;" Fred Gaertner, Jr., man¬
aging editor, Detroit "News;" Wil¬
bur
Forrest, assistant .editor of the
New York
H.
D.
(N.D.)
"Herald-Tribune," and
Paulson,
"Forum."'
editor,
Fargo
Volume 158
V'..
Number 4194
ADVERTISEMENT
the Stockholders: ;
To
The
'
•< ; •/;;
THE COMMERCIAL
^
(
ADVERTISEMENT-
Balance
been careful
Sheet, Income Account and Statement
facilities
auditors
their
Certificate of Audit—show
and
are
accompanied by
as
the
to
the
as
amended
therefore.' of the figures
submitted
has been
given—necessarily retroactive to the
close, of the fiscal yean—to such estimate
in the belief that the result of the re¬
negotiation when finally arrived at will
not materially differ from the estimate
made and effect to which is given in
the statements
now
submitted.
•
"!
: In
this situation, while the "uncer¬
tainty" referred to above has now been
measurably lessened, it still persists—
and will persist until the renegotiation
proceedings, still pending^ are brought
to a definitive conclusion,
*
*
-!
'
Out of the Earnings of the year,
before its close, there had, been
clared and
of
on
one
and
de¬
paid two quarterly dividends
and three-quarters per cent each
Preferred
Stock -outstanding.
the
Since the close of the year,
such
earnings;
dividend
on
another like
such. stock
has
and out of
quarterly
been
de¬
clared, payable July first. It is the ex¬
pectation of the Management that there
will shortly be declared, also out of the
earnings of the year, another like quar¬
terly dividend—and with such payment
the way will be open for the declaration
and payment of a dividend on the Com¬
mon shares. It is the earnest wish of your
Management to put the shares of; your
Company, both Preferred and Common,
on
a
regular dividend basis—and the
Stockholders may be assured that will
be done as soon as conditions permit,
f:
During the year the activities of your
Company and its subsidiaries as prime
producers, of materials of warfare for
our
Government—combat tanks, armor
plate, shells, bombs, fuses, valves, metal
containers
for
the (transportation
of
chemicals, mine sweepers, lighters and
other
vessels for naval use besides
almost infinite variety of
an
miscellaneous
supplies—have continued at an inten¬
sified rate.
Additionally, your Com¬
pany has been called upon to produce,
for Army use both here and abroad,: a
very considerable number of cars of dif¬
ferent kinds, comprising flat, tank, kitch¬
en and gondola cars as well as cars de¬
signed to be used as hospitals on wheels.
The vast amoUnt of work your Com¬
pany has done and is doing—greater by
far than at any previous time in its his¬
tory as evidenced by the fact that your
Company entered upon its fiscal year
now current with a back-log of business
on its books having a money value of
approximately Three Hundred and Fifty
Million Dollars,—naturally has required
a very considerable increase of facilities
own
or¬
PLANT
AND
on
purely domestic busi¬
its
books
orders for
a
very
' $
Equipment......
Reserve for Depreciation.
7*674
$ 65,208,073.60
90104
.$77,232,059.38
38,740.012.71
.
38,492,046.67
.'.
19,041,125.89
ASSETS
on
169,235,787.92
hand
$24,612,256.53
U. S. Government Bonds,
•
Treasury Bills and Treasury Tax Notes at
(Quoted maTket value $73,620,376.50)
Accounts Receivable, less reserve....;...
;
♦♦Notes Receivable, less reserve
cost..
73j619!llol25.
or less, and not In excess of present market prices...,.,Advance payments to Vendors for materials
contracted for..
Marketable Securities, at cost or less
(Quoted market value $1,757,345.82).,
consid¬
48,078,272.48
18,553,784 91
2,4471203.78
inventories at cost
;
clearances to permit of their construc¬
tion—this because of the urgent need
281,655 94
1,643,504.03
.
SPECIAL RESTRICTED DEPOSITS
(U. S. GOVERNMENT CONTRACTS).,........
PREPAID TAXES, INSURANCE, ETC
21,679,088.44
....
war
and
of the materials, steel
purposes
MISCELLANEOUS
SECURITIES
other, which must enter into their
construction.
There is
no
Preferred,
the
war
CURRENT
our
For
,
-
-
.
and
Insurance
and
'
•
•
.
''
for
will
require
abroad
use
of
the
the
consolidated
'
"
-
•'
-
Less:
•:
Dividends
on
earned
surplus
!.i..,
.L, L.
••"•••••
.
1
•
|
:•
1
'
i
:
•••"•';
i
Consolidated Earned Surplus, April 30,
statement
v
-
•»
1943.;
on
-
'
of
Gross Sales, less discounts and allowances
J
account
$289,275,689.04
•
f.
;
Ernest
25
"
'
ij
V
250.736.879.07
To
v'
Depreciation and Amortization.
established
to
needs.
care
for
their
own
re¬
do¬
Your
Management feels
justified, therefore, in looking forward
to a period of intensified activity in the
industry—the manufacture and sale of
railroad
equipment and rolling stock—
in which for many years your
Company
has held a commanding position.
It will be noted from the statements
.
submitted
that
Company is in a
strong, healthy and liquid position, and
is amply able to take care of all its ob¬
ligations. It has no fixed debt and no
bank or other loans outstanding.
The
your
Advance
tracts shown
on
Balance Sheet is
on
We
Government Con¬
self-liquidating item,
representing advances made by the Gov¬
ernment to cover, in part, the cost of ma¬
terials entering into the product in course
of manufacture and to be repaid by
oi
from
Operations
Other Income:'
D.vidends
Interest
$
and
$
———_____
242,312.76
87.971.40
on
Property Retirements
Earnings
before
(estimated): Federal
Provision
we
1.888.207.94
reviewed
Deduct—iProvis'on
Federal
Taxes:
Normal
Excess
Income
their
auditing
$
income
$
2,168,892.13
1
-25.706,009.87
Less: Post War Credits (estimated)
Excess Profits Taxes
2.500.000.00
adjustments.:
In
25,374.902.00
our
Sheet
Surplus
or
near
$
the close of the
under the supervision of responsible
employees of your Company and have been
conservatively valued—and while large in
amount are not out of line with the vast
year
volume of business on our books.
there is recorded the death,
7, 1943, of William J. Harris
after fifty-four years of faithful and effi¬
cient service rendered and who at the time
February
Company's Vicein charge of Purchases.
death
President
was
your
of
:
.
accompanying
Statements
:.
.
Balance
Inoome
and
the consolidated position
the
American
Car
and
Foundry Company
its wholly-owned subsidiaries at April
30,
1913,
and
the
consolidated
results
of
their
operations for the fiscal year, in con'ormity
with,
proportionate deductions from invoices for
completed product as delivered, Inven¬
have, as usual, been taken at cost
or less and not in excess of market prices,
all verified at
,
the
related
and
7.055.718.69
generally
accepted accounting principles
on a basis consistent with
that of the
applied
2,000.000.00
tories
his
avoid
inventories
of
$
the
of
corre¬
States
present -fairly
Your
Yo'rs very truly,
year.
5,055.718.69
Ernest
New York,
on
to
opinion,
and
Surplus
—i
Earnings Carried to
sorrow
by
-
order
effort,
preceding
With
direct
ihe United
have satisfied ourselves as to
by extending our tests of the
records pertaining to such receiv¬
tively stated.
on
Deduct—Provision
for
Contingencies,
including
possible
tax
and
other
were
from
but
mately 42% of the total inventories.
We have
reviewed the oost records supporting such book
values and are satisfied that they are conserva¬
Net Earnings for vear before Provis'on
for Contingencies, including possible
Net
standards
applicable in the
included all procedures which
war
tax
adjustments
internal
plicable
tax
tax and other
of
any slowing down of
the
of work in process ap¬
to certain United
States Government
contracts were not taken.
These inven¬
tories are reflected in the financial statements
at
their
book
values, and represent approxi¬
war
$27,874.902.00'
;
Com¬
correctness
In
(estimated)
Excess Profits
».
profits
and
ables.
32.430,620.69
for
and
systems
necessary.
unabie to confirm
were
accounting
i__.
the
spondence amounts due
for
Income Taxes,
Contingencies and Adjustments
!
Balance
Foundry
considered
We
919.092.86
and
the
Go,eminent,
Net
Consolidated
car
and
c.rcumstances
780.814.98
100.328.70
Miscellaneous
Loss
34.318.828.63
accepted
$
_____
Royalties
■
Company,
accounting procedures of tne
without
making
a
detailed
audit
of
the
transactions, have examined or
tested accounting records of the companies and
otner supporting
evidence, by metnods and to
the extent we deemed
appropriate.
Our exam¬
ination was made in accordance with
generally
1,801,019.10
$
Other Charges:
and
companies,
7.976.60
L
the
American
nave
control
1.531.014.53
Miscellaneous
of
Foundry
Street, New York City.
its wnol.y-owned subsidiaries as
of
1943, and the Consolidated Statements
binpius icr the iiscal year then
end^d,
19.715.21
<
j
accountants
Income and
oi
Royalties
Interest
April 3o,
32.517,809.53
'
-
':■■■"■
./v,'
Street, New York
and
examined
tne
•-*•••*..
Company
and
Stockholders
Car
Church
have
Sheet
Bell
pubi.ic
Beaver
the
Aml.,;jan
pany
Earnings
the liability side of the
a
38,538.809.97
6,021.000.44
W.
-certified
r
$
^
''
of
'
;
;-.v;
,
income
'
•
goods scld. including Administrative. Selling and General Expense, but
before Depreciation and Amort.zation__^__
J
Preferred Capital Stock paid during
1936; H $3.50 per share out of earnings for year ended April 30, 1942:
1938;
:
$3.50 per share out of earnings for year ended April 30. 1943.
consolidated
I
•*
7f4,425,690.50
.V.,.......,.... $ 31,135.282.71
the year:
^
j"
4.......
v
Cost
$ 35,560,973.21
v
.
* .'v.
T
*
-^;>v i
$ 5,025,090,50...
599,400.00
,r,
mo¬
the
v-
Capital Stock publicly held, $15.29 per share,, paid
.-v
•
..i.
:...-.$ 4,425,690.50
Common Capital Stock publicly held, $1.00 per share
599,400.00
f.'r;Note # 1: Dividends
of
$ 33,390,871.59
-*1)
_______
equipment, both rolling stock and
power,
until such, time as
industries are sufficiently
::
5,055,718.69
$7.00 per share out of earnings for year ended April 30.
$1.29 per share out of earnings for year ended April 30.
making
foreign
31,135,282.71
$264,765,366.36
Preferred
(See Note
necessary
tive
'
•
$ 38 446 590 28
Renegotiation Refund (estimated) fiscal year ended April 30, 1942
$ 8,385,617.07
;tLess: Reserve for Contingencies
y..A/,.,,..
3,500,000.00.^ 2.885,617.07
the systems of transportation—and this
undoubtedly
■
-
.
'«
{.
Govern¬
restoration
22,016,000.13
7,251,811.07
Less:
-
rupted and shattered by the impact of
these years of unparalleled warfare. Of
first importance in that process of re¬
the
"
1,934,544.74
.
Deduct—Common Stock Dividend charged to Reserve available lor that
purpose
dustrial, and economic life has been dis-.;
be
4
}■
$ 5,317,266.33
•
J...,,
ACCOUNT...............................
statement of
£
'the major part of the task of re¬
habilitating those countries whose in¬
will
! i.V?.V
' ■*'"Y A'
to be paid when and as declared
Consolidated,Earned" Surplus,"Apfil 30, 1942. .V,; ,w.v............
-Add:
Net Earnings for year......
..;
Dividend on
ment
habilitation
*
V
:
-
Contingent Liabilities:
Secured notes purchased by American
Car and Foundry Securities
Corporation, a" wholly^owned
subsidiary, and by it resold under agreement to repurchase in event of default, and secured
obligation of Shippers' Car
;
Line Corporation sold with guarantee: aggregate amount
$671,153.36.'
:
during year
It is probable that immediately fol¬
lowing the peace and possibly even be¬
fore then, there will come from the
roads of our own country a demand, so
insistent that compliance with it will
be imperative, for new equipment by
way of rolling stock to replace that de¬
stroyed or worn out beyond repair by
reason of the heavy and continuous ser¬
vice given by the roads during these
years of national emergency. It is prob¬
able also that, with the coming of
peace,
our
'
1943.. 135,344,109.24
84,313.22
50
upon
'
'
~
nature.
item of
144 362272 45
8933 84999
;
;
,
our
devolve
•
'
overcome successfully,
organization has met and|
successfully overcome the difficulties
attendant upon our •change-over from
peace-time pursuits
to 1 activities
so
largely and importantly of a military
mestic
-
Contingencies including possible tax and other adjust-
V
met and
will
4,729,736.10
533,399.75
........
(300,000 shares—par value $100.00 per share), $ 30,000,000.00
(600,000 shares—no par value)
!.
30,000,000.00
For Dividends on Common Capital Stock,
by Board of Directors
EARNED SURPLUS
present many difficulties of adjustment,
financial and other—but your Manage¬
ment is confident that such difficulties
there
reserve
outstanding
LIABILITIES
m
.
Govern¬
y thorough research and careful study of
conditions, probabilities and possibili¬
ties. The transfer of our activities from
a
war-time to a peace-time basis will
as
less
2,500,000.00
$264,765,366.36
RESERVE ACCOUNTS
their successful solution entails the most
will be
[
ADVANCES ON GOVERNMENT CONTRACTS
ment; yet full measure of consideration
is being given to the problems that will
confront us following the peace. Those
problems undoubtedly. will be many
;;,and perplexing and the approach to L
just
274.563.50
Accounts Payable and Pay Rolls.-.".".
Provision for Federal, State and Local
Taxes, including (estimated)
amount due on Renegotiation of U. S. Contracts
through April 30,
Advance payments received on sales contracts
of
effort of
'
authorized
Common, authorized and outstanding
war, offensive
and defensive, or for vehicles of trans¬
portation for military and other use.
While, naturally, the attention of your i
Management is and, until the world war
in which our country is now engaged
comes to its inevitable
victorious end,
will continue to be centered upon the..
obligation of your Company to support
to the utmost extent of its ability and
resources
reserve
liabilities
CAPITAL STOCK
that demand be for the pro¬
materials
173,771.91
COMPANIES, less
Plant and Property of parent
Company included in above val -ations were inventoried and valued by Coverdale &
Colpitts.
Consulting Engineers as of April 30, 1939, on the basis of values at March 1,
1913, with subsequent additions at cost.
Plant and Property of Subsidiary Companies are included at cost.
Plant
and
Property includes $13,010,249.0/ represented
by expenditures for extension of plant facilities under the National Defense
and War Programs; aggregate amortization there¬
on has been taken In the amount of
$7,897,384.38 to April 30, 1943.
**Includes $1,943,081.82 maturing subsequent to one year.
equipment are, and in all
probability will for some time to come
be, largely engaged in sup¬
plying the demand of the Army for
rolling stock for its use here and abroad.
Fortunaltely your Company, because
of the size, location and equipment of
its various plants, is in position to re¬
spond efficiently, arid promptly to such
demands
as
may
be made upon it,
of
430,915.14
reserve....
.
continue to
duction
SECURITIES, less
AFFILIATED
.10,550 shares of Preferred Capital Stock
;; ..v.; 600 shares of Common Capital Stock
•
railroad
whether
OP
POST WAR CREDITS ON EXCESS PROFITS TAXES
(estimated)
NOTES AND ACCOUNTS RECEIVABLE OF AFFILIATED
COMPANIES,
TREASURY STOCK AT COST
question that
these cars are needed by the roads, and
undoubtedly the necessary clearances to
permit of their building will be forth¬
coming just as soon as the exigencies of
the military effort will permit.
Mean¬
while, as above indicated, your Com¬
pany's facilities for the manufacture of
here
1943
ACCOUNT
Amortization and
Cash in banks and
number of new cars, which or¬
ders it has been unable to fill because oflack
of
the
necessary
governmental
for
APRIL 30,
Improvements
Machinery and
Intangibles
CURRENT
difficult.
are
and
Less:
erable
:
PROPERTY
SHEET
assets
....
;
the conditions have been and
Your Company has
country,
REPORT—YEAR ENDED APRIL
30,1943
f--'
*
Buildings,
still
v
preparation,
our
ANNUAL
CONSOLIDATED BALANCE
Land
solution.
In the field of
,
shown by the statements now
to the Stockholders,, effect
FORTY-FOURTH
ness, that having to do with the building
of ' equipment for the railroads of our
of that year. >
;
:
In the letter-accompanying
the re¬
port of your Company for the fiscal year
ended
April 30, 1942 reference was
made to the then recently-enacted Fed¬
eral legislation authorizing the "rene¬
gotiation" of contracts having to do,
generally, with the country's war pro¬
gramme, and the consequent uncertain¬
ty as to what of the profits normally
resulting from ■ operations would ul¬
timately be available for distribution by
; way of dividends.
-'<. i' "•'.
' j'
i During the year just closed the warwork contracts of your Company and
its wholly^wnedy subsidiaries for the
two years- ended -respectively April 30,
1942 and April 30,1943 have been under
review in the process of the "rene¬
gotiation" directed by the legislation
referred to—this involving a,revision of
the sales prices as fixed by the contracts
and the allowance of a profit based on
the sales prices as so revised;
While
that process had; not been completed at
the close (April .30, 1943) of the fiscal
year covered by the annexed Balance
Sheet and Statements* and is not com¬
pleted at the time of--this writing,
nevertheless it is sufficiently far ad¬
vanced towards completion to justify at
least an estimate as :to the final effect
upon the profits; resulting from operations^forthelwo^ years ^noted;-?Ip;the
AMERICAN CAR AND FOUNDRY COMPANY
ganization the ability needed for their
by the Revenue Act
„
>•-•1
successful
the operation of the Sixth Supplemental
National Defense Appropriation Act of
1942
ADVERTISEMENT
to it that in neither
found within the limits of
under
Government
see
nor
practically daily occurrence, have
been many and complex, yet we have
year's operations of your
Company and its wholly-owned subsid¬
iaries a net profit carried to Surplus of
slightly more than Five Million Dollars,
'—this after all charges including neces¬
sary reserves, depreciation, tax charges,
Federal, State and Local, the amortiza¬
tion of facilities acquired and installed
to meet the demands upon the produc¬
tive capacity of your Company and its
subsidiaries as prime contributors to the
nation's war
effort
and
(more im¬
portantly) the amount, estimated, to
be returned
217
ADVERTISEMENT
of
are
of the
result
to
personnel has the expan¬
sion been beyond the limits dictated by
prudence and sound business judgment.
While the problems arising, and which
of Earned Surplus—which as usual have
been prepared and certified by indepen¬
dent
& FINANCIAL CHRONICLE
ADVERTISEMENT
and personnel.
While recognizing the
necessity of this, your Management has
; ;
,
Consolidated
annexed
,
'
.
June 25,
W.
1943.
Bell
and
•
f
Company
-
-
Management is glad
to
?
express
to
each and every member of our organization
its thanks and anpreciation for the
loyal,
intelligent and efficient cooperation and aid
given it in the working out to a successful
conclusion of the many and difficult prob¬
lems
presented in the course of the year's
operations—a cooperation and aid that have
been of incalculable value in
Company
obligations
fully
to
to
perform
-our
enabling
its
duties
Government
Stockholders in these
and
your
and
our
trying times.
For the Board of Directors:
<
Respectfully submitted,
CHARLES J.
June 29, 1943.
HARDY, President.
-
:
Thursday, July 15,' 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
Arkansas'sIndustriaL^
Municipal News & NotesS!
TRADING
$14,315,600
314%
Serial
Bonds, due in varying amounts,
of
today $22,111,000 State
of Arkansas 3x/4% and 3% High¬
offering
MARKETS
STOCKS
T
\
'
"
■,,
Y!
•
Engineering
Aetna Standard
of the State
Alabama Mills
funding
Cyanamid Pfd.
American
and interest on the State's
highway obligations.
The bonds
constitute, in the opinion of coun¬
Appliances
Spinning
Berkshire Fine
Hose
Braniff Airways
Buffalo Niag. & East. $1.60
Buda Co.
'
Pfd.
v'.4/Y'';Y:Y YY;'Y
Cliffs Corp.
Insulated Wire
Collyer
Cornell-Dubilier
Crowell Collier Pub.
Cuban Amer. Manganese
Oil Com.
Chem.
Dictograph Products
Deep Rock
Co.
Dwight Manufacturing
Eastern Corp. Com.
'
rated.
-
.
and R. S.
Incorpo¬
Company,
&
Dickson
mainte¬
-
July 9.
the
with
<
■
,
kansas,
*
possible
mined in Arkansas was
carried
Aluminum
The
ica.
$22,1
M. A. Hanna
' Y
'
/
'
/•
'
'
«
I
Houston
1
Indian Motocycle
l
,
'
> u
■
x
1
' J'
•
Vj*.
yield of 362 pounds was the
Pub. Service Com.
These Bonds
- ,i
?
\- -
'
of
part
are
General
1
'
,7.
,
total of $136,330,557,29, authorized by. Act
a
P. R. Mallory
Marlin Rockwell
Light Pfd.
Nashawena Mills
1
:
1
Northeast Airlines
Nu-Enamel
v
;
Oxford Paper Pfd.
]
Pfd.
•/•v.y
;
Charles Pfizer
-
'
v
• 1
Vr"' fl'.
■' /
.•.
'
'
1
'
<
*>'' 1 1
'
/'?, !
Amounts, Maturities
Mfg.
».♦'*, +1 vlr '
11
s,,
V !Y !
* '•
f/!-'-•/
:
and Prices
v" »
*
$14,315,000 3%%
Punta Alegre Sugar
Serial Bonds, due April 1,
To Yield
Remington Arms
1.20% to
Republic Natural Gas
Rockland Light & Power
Saco Lowell Shops
Southwestern
Struthers
104.50%
to
and
Taylor Wharton Iron
G *
* .
A"!
Timm Aircraft
Vertientes Camaguey
y
-
establishments for both
outside consumption.
Such
operations
as : canning,
abattoirs, poultry plants, cream--
v
larger
!
"*■ •
}' •. ;?'
,
eries, furniture* manufacturing
low-cost apparel for local
and
may be expected
the
economic
population contin-,
ues
on
its
present
upward,
trend.
Given the capital
and the managerial skill which
the State's resources invite and1
consumption
A
•.
..
Y
Warner & Swasey
,
.f
Steel
Wickwire Spencer
i
Y ' '>
'
1
*'»•
:
V
''
♦
;»
•
V* v/.-v'tY" '•'y -i-'x: y:
^
••
•' •
.'y
•».
.'d
_
• v-
'
Y7
'
' '
Hmmmmmmmmmmmmmmmrnrnm.
•• •';:
..
- •• •
,<
•'*
f
)•
■
[ >'''*%"+* 5s-'
Y:' ! ,
■" f'.-:
>•; .• 7.
Accrued interest to be added in
-Y-
teletype
graph collect
on
These bonds
traded
or
are
offered subject to prior sale and change in
by the unqualified approving
tele¬
varying amounts \
%
'»
;
^
,
.
!
•
' .»'•
■*
Y
f{r'c
■
Harriman
.
Dated April 1,1941.
COrtlandt 7-9400
89 Devonshire
Lafayette 3300
Or
Teletype NY 1-1950
St., Boston 9, Mass.
;
f
the time of delivery
and Hoffman of New York City,
St., Phila. 2, Pa.
Pennypacker 3333
.
/ ii-r
■:
\
houses which is
Y
.
■
'
,
%
v
'
-
V.
'
95
firms
and
offering today at
102% and accrued interest a new
issue of
As of June
to
be
with
7
;
. ..
'of
•
30, 1943, the bonds
redeemed from the pro¬
ceeds of this
Principal and semi-annual interest (Aprill and October 1) payable in New York City, St. Louis, Missouri
the option of the holder. Coupon bonds in the denomination of $1,000, registerable as to prin¬
carefully compiled from sources
it to be correct as of this date.
including
group
financing together
$465,000 principal amount
i%&
tember
July 15, 1943
1528 Walnut
•"
Little Rock, Arkansas at
Teletype BS 264
Ripley & Co., Inc.,
Smith, Barney &
Co.,
Y
'• ' '?'!*.
"•?*,
•*'. f'r
price and will be accompanied at
cipal only, or as to both principal and interest. The information contained herein has been
considered reliable, and, while not guaranteed as to completeness or accuracy,, we believe
Commission
To Investors
$37,000,000 The Delaware
River
Joint Commission
2.70%
'ss refunding bridge bonds (Philadel¬
■• Y.!
phia-Camden Bridge), due Aug.
1,
1973.
The purpose of this
. -» financing is to provide funds for
the redemption on September 1,
next, at 105% and accrued inter¬
est of $35,238,000, 414% bonds of
the Commission due 1944-73.
■*.'
•'*>*'.
r ' b.'f'T " • ' ■» */.'
HALSEY, STUARr{& CO. Inc.
Broadway, New York 5, N. Y.
de¬
Co., and Lehman Brothers, head
a nation-wide investment banking
U\s.
v
&
Arkansas
industrial
portant further
velopment."
Drexel
all orders
j.iR
warrant,
the threshold of im¬
on
Bonds Offered
Y »Z
,
stands
.
to
appear
f
\
as;
Delaware River
*'-J YA V!.
all cases
opinion of Messrs. Thomson, Wood
.
.
York Ice Machinery Com.
All other issues
expand
status of the
2.8o%y;
'
and
local
to
Maturity to Yield 2.85%
1972
Wamsutta Mills
by
the State's
further industrial expansion will
take two courses, small manu-:
factures for local demand and;
/stating: "Specifically,
£
2.85% to First Optional Dates
thereafter to Maturity
..
and coupon rate
Sugar
concludes
brochure
The
v.
Optional Bonds to Yield 0.75% to
United Stockyards Pfd.
which are lo¬
cated in the State.
published notice at par and accrued interest, serially, in numerical
inclusive, and annually after such initial optional dates.
United Drill & Tool "A" & "B"
United Public Util. $2.75 Pfd.
'Phone,
fueled with purified sour gas,
be
extensive fields of
upon 30 days'
order April 1, 1944-71
Optional
Triumph Explosives
generating plants
large
two
of installation. One of
latter, a 30,000-kw. unit, will
the
3%% Term Bonds, due April 1, 1972
$5,225,000
Products
*t>oth hyr
steam-generated, is rer
in process
Wells Com.
Tennessee
than $96,000,000.
ported as favorable, with 57 gen¬
erating plants exclusive of pri¬
vate industrial units, in operation
1946-69,-in, varying amounts
Yield 2.75% to 2.77%
pulpwood, the
of
cords
and
dro
•
Springfield Gas Light Co.
Stromberg-Carlson
the
manufactured value of which was
/
Bonds, due April 1, 1969-72, in
$2,571,000 3% Serial
Public Service
and
available
The electric situation,
*
\"-h !••
■£ Y'/Yf
•
/
(latent
produced approximately
feet of lumber and
683,300
v * *,
No. 4 of the
^ +
? • '
-
timber,
billion
two
Poor & Co. "A"
120
in
State
Assembly of Arkansas of 1941, to
'
Peoples Lt. & Pwr. $3 Conv.
of
1941
production
on
Com.
Nashua Manufacturing 1st Pfd.
Nashua Manufacturing 2nd Pfd.
New Eng. Pow. Associates Pfd.
Nashua Manufacturing
attained.
and pea¬
than doubled.
is also reported third
the Southern States in the
among
/
f
refund the outstanding obligations of ) *
the State issued under the refunding program authorized by Act No. 11 of the!- '
Second Extraordinary Session of the General Assembly of the State in 1934. 1 - ;
and designed to remedy the 1933 default in payment of principal and interest
the State's highway obligations. In the opinion of counsel, they constitute . Y
valid obligations of the State for the payment of which, both principal and Y
interest, the full faith and credit of the State and all its resources are irrevo¬
cably pledged. Act No. 4 provides among other things that the first $10,250,000 >c
/•,
of State Highway Fund revenues in each fiscal year shall be'set aside 70%'
exclusively for highway debt service and 30% for highway. maintenance. - . *
Products
Loft Candy Corp.
Mass. Power &
t
-
, v
has
State
the
more
more
Sulphur Pfd.
Jefferson Lake Sulphur Com.
Liberty Aircraft
*
1
in 1942
Production of soy beans
3°jo
Highway Refunding Bonds of 1941
334%and
Jefferson Lake
Kansas City
,
Agricul¬
1,485,000 bales (third among
Southern States).
The per
highest
-
IS®!! State of Arkansas*!;f§fj
International Mach. Tool
Pollak
the heading of
Under
1,000I
'
$70,-
which ture, the brochure points out that
figures)
"A"
Lighting & Power
represent
about
of
000.000."
Haskelite
Hearst Cons. Pub.
lease by <
of Amer-,
plants
two
Arkansas
Gas&Elec. Com.
under
Company
investment
an
nuts
Giddings & Lewis
Corporation and
operated
are
financed by ,v
were
Plant
Defense
General Machinery
General Water,
These
type.
acre
Federal
Opinion of Counsel) from all Present
Arkansas State Income Taxation
now
at two recently com¬
on
the Arkansas cotton yield
Interest Exempt, in
and
are
processes
pleted mills of the most modern
the
Foundation Co.
both
pigs,
,
and.
aluminum
into
manufacture
bauxite
shipped
reduction
for
elsewhere
Tel.
Weld.
Federal Water & Gas
well-in-;
to
Whereas previously all
was
Farnsworth Radio &
•
ores,
quantities ade- ;
according
quate,
utiliza-
lower-grade
in
formed sources, for many years.
Pfd.
Federal Mach. &
its
exist
which
Those of
(from
bauxite
are
are
profitable
the
of
tion
economic impor¬
greatest present
ores
proved reduction facilities make
being
are
re¬
known
)
"Apprais¬
published by
Co., Inc., in
25
its
presently
being
A com¬
produced commercially.
tance
-
which
of
of
<
war-time
from
difficulties)
higher-grade
parable brochure, titled
was
increased
rapidly consumed, recently im-
Gov¬
of
approval
resulting
serves
v.
Homer M. Adkins.
ernor
under
(to offset reduced im¬
cooperation with State officials
and
bauxite
Though
enormously
ports
is in the form
brochure entitled
' 24-page
a
all/domestic
of
shipping
The publication
of
Commerce Un¬
of Nashville
Bank
ion
debt service
nance.
announced
was
'v-v'
for
demands
York, it
New
and
Halsey,
Ross & Company,
ratio of 70% ex¬
highway
for
30%
and
by
petroleum^
existing
some
is being pub¬
Halsey, Stuart & Co.,
Chicago
Inc.,
*
accounts
now
production.
Stuart &
Other leading participants
in April, 1941.
"The
greatest recent gain in
the
offering
includes:
Lazard
the brochure states,
Freres & Co., The Northern Trust Arkansas,"
"has been in its mineral produc¬
Company, Otis & Co., Bank of
tion; likewise one of its greatest
America, A. C. Allyn and Com¬
potentialities for future gains lies
pany, Hornblower & Weeks, C. F. in this field and in the processing
ThirtyChilds and Company, Equitable of its mineral products.
five minerals are found in Ar¬
Securities Corporation, Mullaney,
and
all its resources are irrevocably
pledged:
The Act under which
the
bonds are issued
provides
among other things that the first
$10,250,000 of highway revenues
going into the State Highway
Fund in each fiscal year shall be
clusively for highway
lished
2.85%.
and credit of the State
faith
set aside in the
Dewey & Almy
Eastern Sugar
interest,
and
principal
95%
,
photographs,
yield < ing Arkansas,"
to
priced
is
maturity
State
both
the full
sel, valid obligations of the
for the payment of which,
Boston Woven
100
optional
pal
Co. Com.
Bendix Home
designed to remedy the
default in payment of princi¬
1933
Auto Ordnance
Autocar
in
in
authorized
program
1934 and
Arlington Mills
"Arkansas
"Re-Appraising Arkansas."
Text
and
illustrations were prepared
1,
Arkansas, illustrated by
made);
natural gas and coal.
potentialities of the State
bonds are priced to
yield 0.75% to 2.85% to the first
optional dates, and 3%% there¬
after
to
maturity.
The 1972 ;
obligations
issued under the re¬
outstanding
the
fund
and
ress
optional
in
various amounts
each April 1, 1944-1971.
The
$136,330,557 authorized by the
General Assembly of 1941 to re¬
of
•
comprehensive review of the
industrial and agricultural prog¬
1946-1969, priced to
yield 1.20% to 2.80%; $2,571,000
3% Serial Bonds, due in vary¬
ing amounts April 1, 1969-1972,
priced
at
104.50%, to
yield
2.75% to 2.77%; $5,225,000 3H%
Term Bonds, due April 1, 1972,
bonds
.aluminum?. is.
A
of
April
Refunding Bonds of 1941. The
are a part of a total issue
way
present offering consists '
The
Halsey, Stuart & Co. Inc. and
associated group of dealers are
an
-,
Im^essive"'^-^! ;v i[
Progress
bonds maturing Sep1,
f
1943 constituted the
entire outstanding
funded debt
(Continued on page 207)
,
k
Volume 158
Number 4194
THE COMMERCIAL &
Tomorrow's Markets
Walter
.
Whyte
Savs
(Continued from page 203)
few
\
points
to their
But what I warned
more
prices.
against in last week's column
-—to watch out for reversal—
occurred.
Eastern Air Lines,;
^hich-
was at 42 and which
column said indicated a
this
rise to
Seaboard Reorganization
Possibilities
the
significance of the Special
Master's plan for the reorganiza¬
figure and then
again.
TWA,
24, showed signs of a rally!
26-27. ; It got to 25% and
at
to
42
backed off to 24.
ivv'
;
The
>'f \:X '
%
.
.-is
thing happened
in
the
farm
equipments.
Oliver Farm, the
outstanding
,
same
stock
of ;
the
had
group,
everything in its favor.
I
warned, however, that if it
be
Air Line which
to
presented
the
Court
from L.
request
child '& Co.
upon
H.
Roth¬
down
it would
group after group has
made its objective, or is close
enough to it to warrant the
professional trader to be ex¬
request from Herzog & Co.
r.;
war
;
market
age
much
thinks it does.
rooms
fore, to get;
another
which
on
aver¬
in the £ustoaxiers'
inan
for
the
as
a
is that
it.
far
-So
the
as
stocks
you
current
of
rest
have
are
the
con¬
advice
is
as
it
you
got at 31^, is
32.
Raise your
impetus
an
about
must
But if it
into
example
of
level
stop to 30.
gets to 39 and
dullness
37
how Get
affects stock prices be¬
fore it becomes public knowl¬
don't
runs
wait
that
out then.
v
for
time.
some
Last week I
-
Fairbanks Morse
bought at
felt
they
were
close
a
low enough to
Congressman
article
If at 21 it hems and haws and
no
In suggesting the
one,
tablishment
too.
*
*
jH" '•
-
•*'
*
T
•
would
nor
something
radically
With the
industry."
wrong
Over the
iweek-end it happened.
Truman Committee
with
a
is
The
came
out
There is
report.
and
the
in
discussing this
latter
still at
16.
keep the
old stop at 14.!
,
*
:
More next
no
re-
is
Raise your stop in Distillers
to 32.In Newport
(
point
;
*
"V
*
•
Thursday.
currencies.
ing
stabilize
rlJhe views expressed in this
.
those of the author only.]
nothing
commodity purchas¬
a
corporation.
York
Stock
complish nothing
which
could
be
Curb
Exchange
New
York
Commodity.
.Cotton
.
Chicago
New
Orleans
And
Exchange;
Board
Cotton
99
WALL
Exchange
of
Inc.
<
.
Trade
STREET
NEW YORK 5, N. Y.
;
the
"bank"
Y.
speculation
on
commodity
most
a
NEW
speculation
CHICAGO
DETROIT
GENEVA,
4, N.
r
Y.
Exports—Imports—Futures
Hotel
HAnover 2-2100
Sept. 17, 1942 issue)
our
Inflation
Hedge
Securities Show Market Strength"
securities
as a hedge
against the inflation threat is noted by brokers
specialize in that type of security.
"Investors are seeking a tangible investment for their
money and
who
feel
the
that
medium
these
the
securities
backed
real estate values
as
inflated.
For many
years
by real property provide such a
traditionally increase when prices become
before^
depression, real estate mort¬
bonds occupied a preferred
position as investments.
Today
gage
they still
are looked upon favor¬
ably by insurance companies who
have about 19% of their assets so
secured
by hotel properties have
gradual ; but steady in¬
shown
a
due to the marked increase
crease
in
business
tures"
less
of
such
there
guarantee behind them.
used
chase and retirement of
the -effect of
to fixed interest bonds in order to
maintain
return
a
their
on
in¬
vested capital.
"These
ket values
real
have
IBA Nominees
field.
mar¬
issues in the
Several
investments
Federal Reserve
ably
in
usual
which
District.
Long prominent in civic activi¬
Capital, he served
in
Bank
or
sold
in
the
exec¬
Giving
effect
holdings,
the
cess
such
bank
bill
calculates
York
all
poses, spme
to
institutions
intents
and
pur¬
$2,000,000,000 in
about
reserves,
cates
maturing
in
utive committee of the Commun¬
year
ity War Fund and since 1942 has
exceed
ex¬
half
the
less
than
a
shown at the peak.
chairman -of the
Red
Cross
of
In
addition, he is
tee
of
and
the
is.
on
Washington Cathedral
the
executive commit¬
tee of Garfield
y
With
been'
the
Hospital,
IBA, besides
elected;
having
vice-president
as
twice, he has served on numerous
important committees including
the Federal Legislation Commit¬
tee, : of which he is currently
chairman, the Education Commit¬
tee.
and
of
The
Issues
to
This
reach
the
many years
ington, and
28,
1896,
lived
for
in the State of Wash¬
was
graduated
from
State
College of Washington,
1917, receiving the de¬
of B.S. and M.S.
of
of
head the IBA
in
was
the
Mr.
Folger
previously
Financial
to
re¬
Week
fraternity
sues
reports
on
which they believe offer at¬
possibilities.
which
their advertisement
may
Copies
are
<on
of
listed in
page
204,
be obtained from Straus Se¬
curities Company on request.
81
2-4s,
31%
69
1950
1958-.™.
;12%
29%
,
16%
7
Benjamin Franklin 3-5s_-
89%
62
Berkeley ;Carteret- 1st 5%s_
51
48
Hotel
Drake
Hotel
Lexington
5s,
Hotel
St.
Hotel
Waldorf
44
Units
72
Taft
Hotel
1953__~__
George 4s, 1950__
5s, 1947-™.-.™.
1953-54
marketed
count
of
by bankers for the
a
39%
~
52%
37%
v
92
78
19%
2%
Hotel business today is near its
peak for all times and
this
condition
eral
believe
we
years.
will
exist
for
sev¬
Increased earnings, in
our opinion, must be reflected in
higher market prices for the out¬
TRADING
y:
ac¬
SECURITIES
of large stock¬
holder's, and blocks of preferred
stock
of
MARKETS IN
REAL ESTATE
group
common
United
Corp.
The latter
was
made up of 4,050 shares of
preferred and 13,500 shares of
SHASKAN & CO.
Members New York Stock Exchange
40 EXCHANGE
common.
Bell
PL.,N.Y.
DIGBY 4-4950
Teletype NY 1-953
Tomorrow,
unless
something
happens to change the situation,
investors will have opportunity of
subscribing for $7,000,000 of tenyear
3V4%
sinking
fund
de¬
bentures of the Consolidated
New
York
as
banks
and
trust
Fl
and
all
Series
A-18
other
of June 30th, 1943, have
TITLE CO. CERTIFICATES & MTGS.
Corporation, 120 Broad¬
New York
City.
Copies
of
request from the New York
Hanseatic
Prudence Collaterals
com¬
this interesting table may be had
upon
C2
Compared
prepared by the New York
Hanseatic
way,
BK
NXTitleJtee.
panies
been
Active Markets
Cigar
interesting
tabulation
of
comparative figures for leading
Corporation.
'
28
.
a
An
seventy-three is¬
1942
86
6s,
Hotel
Hotel
1949_
3-6s
standing securities.
'Chron-i Corp.
individual studies
Beacon
today.
secondary
offering of $2,744,000 of 5% sink¬
ing fund debentures, due July
1950, of Jacob Ruppert, being
of
NY Bank Stocks
have prepared
;
5%s,
York
New
was
icle" of July 8th.
Straus Securities Company, 135
So. La Salle St., Chicago, Illinois
Albany Metrop.
market
These consisted
and
May
ported
reserves
States Plywood
:
T
Prices—
1943
able to bring about three
cor¬
porate financing undertakings this
week, two of which were slated
Securities Acts Commit¬
Mr, Folger was born in Sheldon,
Io\va,
free
investment
"
I
.
that
Three
member
a
added, the total would
are
8
the Ways, and Means Commit¬
—Bid
July 12, July 12,
Ambassador
ings of $2,500,000,000 of certifi¬
of
prices
Allerton
Community -Chest Drive, is at the
member
more
possibil¬
(end of reprint)
be
total at their peak, and if hold¬
a
with
appreciation
ities."
at the
of the
general chairman
these studies,
DIgby 4-2727
cam
5
to
present
yield consider¬
a
of 6%
excess
securities, comparing bid
today with a year ago.
the open market.
New
as
pur¬
bonds to
We give below a table showing
the market action of several hotel
gill! Report
have,
1940
i.v»
outstanding mortgages,
have the natural tendency of sta¬
bilizing and increasing market
prices. At current levels, many of
bonds
Reporter's
that
the
for
Market Action
Our
(Continued from page 202)
Victory Fund Committee of the
in
sinking fund
a
than
already
increasing
of many
estate
as
these bonds offer
factors
had the effect of
term
ties
of
reduce the
high taxes in reduc¬
ing stock dividends, have turned
quickly converted into cash
Reserve
the
earnings after
on the bonds,
"Many investors, needing and
depending on income and seeing
(Continued from page 203)
Federal
of
amounts
payment of interest
un¬
Government
a
earnings
Sizable
cash available from
I doubt
institution
an
was
and
properties.
invested.
much whether the investing
public would buy the "deben¬
tractive
PITTSBURGH
SWITZERLAND
is
dangerous and obnoxious of
forms of speculation.
and
Exchange Bldg.
YORK
commodity
large scale, and
Interesting Possibilities
other Exchanges
Cotton
'An
into
>
Exchange
SUGAR
N.
than that
more
done
by private
speculation and enterprise.
It is
my
belief that the plan would
grees
LAMBORN & CO.
Exchange
York
it
domestic production, it would ac¬
the
Members
New
as
acquisition
of strategic
materials, or to such
commodities as may be in demand
in specific countries beyond the
Nomination
New
Inasmuch
is to be limited to the
class
H. Hentz & Co.
•
domestic
It amounts to
than
more
tee
—Walter Whyte
do not necessarily at any
time coincide with those
of the
Chronicle. They are presented as
Established 1856
This pro¬
tee, Public Information Commit¬
article
,
it
Security Dealers Association
New York 4
<<
es¬
international
an
posal would not eliminate the in¬
ternational
exchange
problem,
bia.
34
there
-
Dewey's
proposal of the
of
York
Real Estate Securities
Chapter of the District of Colum¬
•
You 1 still
hold
two
old
category I warned, however,
that if they did not hold their, stocks, National Distillers at
31: and Newport Industries at
critical levels,
"you can be 16. The former is now at
certain
S.
New
(Partial reprint of article in
been
volume, step out-of this
purchase of two stocks in this
treasonably
Charles
the
on
"Bank of Cooperation."
>/
Flintkote, bought at 20 V^,
with a stop at 19V^,
may run
speculation: with
stops.
Broad Street,
41
Fifth
into trouble at 21 this week.
warrant
Incorporated
Members
"A decided trend of capital
being invested in selected real estate
with much interest
Are Announced
the
airplane
going down
Seligman, Lubetkin & Co.
weaker.
for
figure to be broken;'
edge take a look at the air¬
39; keep stop at 37.
plane issues.
Everybody
knows
the
tion, The College of the
City of New York
news
Stocks have been
of
Professor of Business Administra¬
all
Auto-Lite, bought
33, keeps its old stop at 37
at
the
1' For
now
Electric
news
feed
can
the
upon request.
a
very
the
move
from home.
Come
Reynolds Tobacco B, which
Complete descriptive circular will be sent
■
stronger
inevitably pulling the strong¬
to
1942,
MARKET: 39V4-40y4
foreign
weaker country on
favorable trade of
lead
There¬
new
unfavorable
I have read
it doesn't hold 36 don't hold
does not affect the
as
some
;
reasonably certain that
news
trade of
the
You have already read
port.
it in your daily paper.
What is important
follows.
It is
the
-
cerned
tremely cautious.
Morgenthau proposals, in Mr.
Dewey's opinion, represent noth¬
ing more than a means of sup¬
Carlson,Federal ous comments
regarding the pro¬
Screw
Works, Bartgis Brothers gram suggested
by Mr. Dewey,
and Segal Lock & Hardware offer
and several of them were given
attractive situations, according to ■in last
week's issue.
In the in¬
memoranda prepared by Herzog
terim, the following expression
& Co., 170 Broadway, New York
has come to hand:
City.
Copies of these interesting
memoranda may be obtained upon
A. M. SAKOJLSKI
Stromberg
mean
and
Ratio of Liquidations to December
31,
80% of Asset Cost
The Keynes
,and
porting
Series C-2
-
Mortgage Liquidating Certificates ;
(Continued from first page)
tional trade balances.
Since publication of the article,
the ''Chronicle" has received vari¬
the end of the
clusions that stock after stock
1st
er
Sperry—an airplane acces¬
sory—which you bought at
move for the
whole
group...
You
know 30, with a stop at 29, broke
what happened.
through -with a bang. ; But;
United Aircraft, which you
The over-all answer to all bought at 38, has so far stayed
these actions is the sober con¬ above its stop price.
But if
turned
New York Title
one,
Situations of Interest
219
International
prior to July 20th.. Copies of this
interesting study
may
be had
45-46, managed to just
off to
of Seaboard
will
shave the 45
sold
'
Interesting
L.
H.
Rothchild
&
Co., 120
Broadway, New York City, have
prepared an interesting study of
tion
FINANCIAL CHRONICLE
SIEGEL
39
Broadway, N. Y. 6
Bell
System
&
CO.
DIgby 4-2370
Teletype
1-1942
.
;
&*&'
^ IWO&musm
m*
tumor
Canada Proposes
-Aetna Life Ins.
\
Mid Year
•
.'
■
Available
Travelers Ins.
effects, and the contention of this
paper
is that the time allowed
must be adequate. More time may
be purchased at a
smaller real
'■ t
'; ".•;
■
'■ •'_•
).
,
•'
Request
on
with
There is
12.
should
New
Members
York
other
and
leading
•
1
Stock
Exchange
exchanges
Telephone
Dlgby
lish
NEW YORK 5, N. Y.
120 BROADWAY,
''Bell
L.
4-2625
1-1248-49
Teletype—NY
to
Gibbs, Manager Trading Department)
A.
and
obviously lies in the strong growth in the volume of earning assets
financing
nection
Government's
is
of
interest
experienced
war$>
In this
program.
it
amine
institutions have
the
con-
to
since
the
of
member
accompanying
table
shows
the
changes
that
which
the past year, as a
'r:«;.y-;:■!:
• .:i:' '?!■•'-L,^;
have taken place in the reported
over
j''-...v
assets
ex¬
the
'• ''t'''•
p'V
Comm.
Date 1942—
'
January
7
| April
'
May. 6__-—
Invst's.
& Invst's.
$6,983
$8,447
6,932
8,382
Sf-ovS 12,137
7,157
8,595
3,895
7,033
8,507
3,738
7,447.
October
7
! December
2—
•
.1943—
9,473
8,547
9,860
13,266
13,505
10,322
13,959
:
8,990
3,862
9,936
11,128
10,286
11,438
2,392
May
2
June.
3,448
3,443
4,422
11,632 i'F!
12,727
2,213
L____
5^
3,599
2,225
3
April
.3,669
2,402
—
,
3,850
13,416
11,666
,
12,831
be
observed
j
though commercial loans
have
declined, total loans are moder¬
ately higher.
This is because of
increased
brokers'
activity ; in
loans.
Holdings of Government
bonds
and
have
notes
Bought
advanced
investments
50%.
'
;
:
have
•
.
-
■
Special
'
total
.1942
and
first six
f',' '
averaged $16,912,000,000.
words,
earning assets
averaged
have
banks
the first
and
the first
and
In other
of these
$4,-
some
the
six
second quarters
months of
1943
periods in 1942.
1 : After eliminating
the special
non-recurring
profits
cited
in
vs.
same
footnotes
(1) and (2) under the
indicated earnings of
these 18 banks averaged approxi¬
this
•half of
1942.
served
that,
year
over
the
cases,
OF
L.
A.
«
v
279
L.
-
A.
in
and
unusual
interest
is
operating report by Bankers
Trust,
on
the
standard
form
adopted by most of the banks in
New York City last year.
This
report shows net operating earn¬
ings for the first six months of
year
1943
to
be
to
$1.88
pares
with
This com¬
indicated
earnings
shown
above
of
ter
figure,
$7,500,000
first
cur-
This lat¬
however,
includes
transferred
to
serves
from
re¬
profits
undivided
reflects
and
$2,000,000
charged
against undivided profits in
nection
with
writing
book value of the
ises.
After
con¬
down
banking
allowance
for
But
proposals here advanced
agreement
can
national
13.
To
.
national
the
prem¬
these
which
the
involves
York
New
New
a
Trust
Bankers
Brooklyn
$1.88
reported
earnings.
EARNINGS
Corn
$0.36
6.47
*2.88
-
1.02
-0.76
1.15
0.58
0.62
3.45
0.60
0.25
,
.
45.08
0.95
1.86
0.37
0.48
5.; 1.23
0.85
>;,$2.49
0.74
l.At
28.51
0.67
National
.=; ■
transfer
these,
of
from
tOn 500,000 shares.
-
Shippers
Pittsburgh
;
C.
E.
Street,
Berkeley. Square, W. 1
with Banks \
Agency arrangements
throughout
>
h
.
the (J.
S.
A.
.
..
,.I
NATIONAL BANK
of INDIAI LIMITED
Bankers
to
Head
;
26, Bishopsgate,
London, E. C.
;
'
in
India, Burma,- Ceylon, Kenya
Colony and Aden and Zanzibar • -
Subscribed Capital.:
Bank
conducts
banking and
•
£2,000,000
£2,200,000
Fund:
Reserve
-
£4,000,000 ' ^
Capital
Paid-Up
The
in
Uganda
and
Office:
'
...
Branches
Government
the
Colony
Kenya
Trusteeships
•>
-
description
every
exchange
■
of
business
Executorships
and
■'
also undertaken
NATIONAL BANK
of EGYPT
Head
v
"
Cairo
No.
CAPITAL
FUND
.
.
.
1
Cairo
£3,000,000
£3,000.000
.
-)v 0.69
*v,vv'
16.05
in
principal
Towns
EGYPT
and
all
the
the
in
>\
SUDAN
2.00
0.90
8.06.
'4.00
0.84
'0.40
1.63
1.20
49.83
0 82.-.
16.47
v..
-
King William Street, E! C.
0 70
1.31
1.25
7
2.00
2.55
tl.74
§1.41
AGENCY
Branches
0.70
1.35
v
and
7.00
2.65.
0.91
8
$0.45
40.00
9.23
6.00
0.38
0.30
2.17
1.00
'
2.20
0.50
2.79
1.75
51
n.ne,
32.52
35.00
1
.
reserves
$0.88.
are
FULLY PAID
Office
Register
Months Dividend
surplus;, afteiv adjustment,
credited to
these
.
Half Year
3.64
1.63
-1.30
5.23
0.20
■
Six
and $0.80 write-down of building; ad¬
tlncludes $1.00 distribution by City
indicated earnings are
§On 600,000 shares..-/fIncludes City Bank Farmers Trust.
$2.80
indicated earnings
recoveries
6.00
0.32
'
13,25
15.26.
in
OFFICES:
LONDON
LONDON
12.05
32.69
0.46
tl.38
1.26
i,
S. Trust—
Plastics—An Industry
Of Tomorrow
The
future
prospects for the
plastics industry are most promis¬
ing according to an interesting
study prepared by C. B. Richard &
Co., 60 Beaver St., New York City,
members
of the New York Stock
Exchange. Copies of this interest¬
ing study may be had from the
firm
upon
dustries
of
request—ask for ''In¬
Tomorrow—No.
3—
Plastics."
.■
were added to sur¬
Indicated six-month earn¬
ings shown in the tabulation in¬ Lawrence Lindsay Joins
clude the above $7,500,000; when
Harriman Ripley & Co.
this
is
allowed
for,
indicated
CHICAGO, ILL.—Lawrence J.
earnings become $0.99 per share
compared with $1.08 reported. V • Lindsay has become associated
with Harriman Ripley &
The earnings outlook for lead¬
Co., Inc.,
ited
ing
New
the
balance of
National
Bank also is¬
operating figures,
which show net operating prof¬
its to have been $1.08 per share,
clusive
Security Insurance of New Haven
Detroit
0.40
0.72
17.14
0.91
'
——
»
;l
investors,
to
Interested
Threadneedle
Commercial
$0.66
0.77
0.69
4.61
0.44
4.00
0.18
0.92
;3.00
0.16
service
ity profits which have been cred¬
MARKETS
-
.
1.53
0.80
27.39
.
1.25
6.11
0.50
3.27
2.84
3.00;'
0.16
:
—
City
$0.21
2.37
2.26
0.40
17.69
.
.
for
1.32
.'.'.* 1.15
0.73
_
Manufacturers.
and
1.26
0.65
0.55
National
Irving
First
Quarter
,0.25 11
Exchange
First
1943
Second
■■
Six
$0.30
5.58
0.76
.
&
J
complete
most
countries.
RESERVE
Quarter
T,_.
B.
the
travellers
and
traders
re¬
operating
net
8.58
National
Cont.
banking
offers
PER SHARE
1.11
Commercial
la
efficient
(Continued on page 221)
of
Second
1.05
Australia,
of
States
and
equilibrium
$0.63
__
all
it
achievment of
by
4. To aid in the
international
0.36
Trust
in
London,
foreign
of
reduction
temporary
Months
National--—
Chase
With over :
largest bank In Australasia.
branches
markets.
4.61
Hanover
Central
.
>
their economic and
policies by long-run
considerations when faced with a
earn¬
0.61
SYDNEY^
of New South Wales Is the oldest
commercial
$0.33
_______
George Street,
in
guided
Quarter
York
£150,939,354
Zealand, Fiji, Papua and New Guinea,
reduce .the
to
order
$0.30
Manhattan.—
of
including
Cleveland
exchange
foreign
in
3.97
of
Bank
Trust.
-
countries
all
to
Quarter
City
Bank
$0.53.
Jersey Insurance
Buffalo
provide
to
—-1942
First
30th
New
a
the war will be
largely determined by a shortage
of foreign exchange and to en¬
able
countries thereafter to be
„
extension
INDICATED
:
Office:
The Bank
danger that economic and com¬
mercial policies in the period im¬
City
sued six-month
to
of
in international payments.
access
ings become $1.64 compared with
Co.
Place, N. Y. 6—HA-2-2400—Teletype NY 1-376-377
Wires
provide
3. To
inter¬
items indicated six months'
justing
Security Dealers Association
.
*
To
ances
that:
an
f
ALFRED DAVIDSON, K.B.E.,
General Manager
Head
870
r
8,780,000
£23,710,000
Aggregate
Assets'
Sept., 1941
convenient
clearing mechanism to settle bal¬
2.
organization
monetary
^National
Bankers &
provide .for stability
ination.
(a) An international agreement
for the establishment of
of Prop.
/
An
for
Experts
orderly method for their determ¬
are
1
suggested
is
it
"Reflects
Private
Liability
of
Proposals
Draft
exchange rates and to provide an
these general ob¬
sum up
servations,
'
*
Guaranty:
Troster, Currie & Summers
TRADING
Reserve
Purposes of the Union
I.
1. To
give greater scope
policies than
can
it.
outside
Public
74 Trinity
Fund
International Exchange Union
international
conceived
6,150,000
Reserve
and
T
1
£8,780,000
Capital
Paid-Up
47
Canadian
1817)
; (ESTABLISHED
29
mediately after
U.
Members New York
v
no mem¬
Tentative
WALES
NEW SOUTH
cies.
sources
New York Trust--.——
|
hoped
creditor, it should have returned
to it its original contribution to
the resources of the organization.
Chemical
also
It may be
share.
$3.64.
advice
-
and
(f) No country participating in
the
arrangements loses control
over its domestic economic poli¬
$4,711,938, equivalent
per
action, if
disinterested
bership, it should be free to with¬
draw after making provision to
liquidate its obligations to the or¬
ganization or, if the country is a
for
mid¬
a
commitments, since it can determ¬
ine their size by its own
it wishes to do so.
280
rent
dividend
rates
are
being
comfortably covered, and in some
instances, generously covered.
Of
BANK OF
.
(e) No country participating in
arrangements loses control
the size of its international
It
,
Ltd.
Australia and New Zealand
SIR
down.
than
,
Bank,
Glyn Mills & Co.
cure-all;
a
position to offer in¬
a
great weight.
carry
soundly
Francisco
San
-
of disequilibrium
put forward in the belief that
Angeles
WIRES
Chicago
«
corrective
position.
necessary
The
Co.
CALIFORNIA
'PRIVATE
York
it will have
been available before.
will be
exist
It will also be ob¬
in most
'
TELETYPE
mately 18.5% higher for the first
of
(P. C. T.)
solicited.:
Orders
Seattle
tabulation,
half
to 5 p. m.
they
000,000,000 or 31% greater in vol¬
ume, during the first half of this
year compared with the first half
of last year.
This situation has
naturally been reflected in bet¬
ter earnings, as shown in the ac¬
companying
tabulation,
which
gives the indicated earnings per
share of 18 New York City banks
for
New
during
months of 1943
Brokers.
&
m.
210 West 7th St., Eos
i
well,
Deacon's
to
brought into equilibrium, any ar¬
rangements
made
will
break
institu¬
by the actions of the organ¬
ization, and is willing to sacrifice
the advantages of continued mem¬
Service
Butler-Huff
.
functions
proposed
unbalanced
those accompanying longterm
capital
movements)
are
dized
'
investments
$12,920,000,000;
averaged
the
loans
a.
Inquiries invited.
During the first six months of
the
Associated Banks:
Williams
cept
low, the advice given by the or¬
ganization. Moreover, if a coun¬
try; feels .at any time that its na¬
tional interests are being jeopar¬
Compared
-
Booklet
and
Dealers
Trading: daily 7
'
In their national poli¬
cies, countries should be limited
only by their own will in enter¬
ing and remaining in the organ¬
itself -in- all circumstances to fol¬
Quoted
-
Reviewed
Bulletin
to
•
advanced
4
18,240
Sold
-
-
^
from
be
achieved.
If
find their inter¬
(d) The
not
the
^cannot
purposes
£108,171,956
the
after
extension of credit is
it merely pro¬
vides time for adjustments; and
unless unbalanced positions (ex¬
realizing
agreement
m TOTAL ASSETS
and
to adjust their
measures
ber state should be asked to bind
•
BANK STOCKS
$6,983,000,000 on
Jan. 7, 1942, to $13,416,000,000 on
June 2, 1943, an increase of $6,433,000,000,
equivalent
to
ap¬
proximately 92%. ; Total loans
and
18,144
INSURANCE &
Analyzed
sharply
16,196
14,390
..
!'
15,994
13,722
11,374
.
al¬
that
such
which
accounts
the
take
pro¬
that the. auality of the advice of¬
fered will be such that it will
16,500
16,422
12,753
,
<•>——
It. will
12,823
12,546
11,674
;
common
the
common pur¬
advantages.,
without
to its members.
15,253
2,255
March
3
and
poses
that
formed
.
14,990
3,815
2,324
February
into
64 Neu} Bond Street, W, I
the
re-established
national
Na¬
causes
li:) 8,212
,
vfv
January;. 6—.——
enter
surpluses
Charing Cross, S. W. I
Burlington Gardens, Wfil\;i
and it should provide time to
ever
3,793
3,646
2,538
should
action in
countries
has
12,864
3,626
tions
posed agreement for
'
war;
The
interna¬
supernational.
49
be
the
.12,734
'
tional and not
be
account
b
fj'i 8 West Smithfield, E. C 1
g
.
.
can
12,568
8,963
2,605
im¬
8,830
9,127
2,600
4_—J—
November *
should
,
0
the
7,630
•
organization
.
over
7,878
2,541 ;
the
L-
3 Bishopsgale, E. G 2
i
sufficient to provide a firm basis
on which multilateral world trade
national financial transactions and
3,771
a
contribute to
.
OFFICES:
LONDON
faced,
years imme¬
diately after the war; it should be
not
or forced, for lack of
cooperation, to pursue
which impoverish them¬
and
be
The credit made available
tional
12,402
3,738
2,5.95
2+.jw-——
peo¬
will
numerous
must
Scotland
throughout
deal
logical and convenient
place for joint interna¬
_
OFFICE—Edinburgh
HEAD
deficits which is not met by relief
and
other
concerted
interna¬
at its disposal more information
regarding the currents of inter¬
2,588
5
they
will
a
current
to
12,471
.
2,576
August
which
own
poverishment of the world.
tion
$12,225
3,755
.
free
are
induced
ization.
Total Loans
3,876
2,614
3
September
!
!*'•
'»
Total
Govt's.
$3,778
2,793
July
•
''/> 3r
U.S.
2,734
______
2
June
*kt$ 7
* -
*
2,645
4—
-
City,
January, 1942.
Loans
:
York
New
of Dollars)
Total
$2,578
4__
February
March
Loans
Reserve
Federal
banks,
;':'V
(Millions
c.
in
policies
In accord with expectations, mid-year statements of New York
City banks show second quarter indicated earnings to be substan¬
tially above those of the first' quarter, and also above those of the
second quarter of 1942. ■; The reason for such a favorable showing
these
countries
?
.
through the international mone¬
tary organization should be ade¬
quate to deal with that portion of
out sound economic policies
selves
of
omniscient
Incorporated by Royal Charter. 1727
Branches
machinery
one
of the
action.
(c)
organized
By E. A. VAN DEUSEN
which
tional
estab¬
omnipotent. Its aim will be
conditions in which
ple
be
result
neither
to
for the welfare of their
Bank Stocks
—
starting
institution
proposed
be
member
Bank and Insurance Slocks
but it is
Royal Bank of Scotland
achieved.
be
only
problems. which
inter¬
new
to
(b) Such
promote
carry
This Week
The
monetary
is
it
will
nor
Telephone: BArclay 7-3500
NEW YORK 5
WALL ST.
which
Exchange
Stock
York
New
be made.
is
general character which
national1
Laird, Bisseii & Meeds
Members
a
cooperation in the post-war world
final observa¬
one
tion of
Aclli.Ki3()ct(&(i).
is essential if international
credit
cost than less time.
Figures
•"• '•• •/• •/
\
Internationa! Exchange Union
(Continued from page 212)
Bank Stock Analysis
Conn. General Life
,
Thursday, July 15, 1943
THE COMMERCIAL & FINANCIAL CHRONICLE
220
-
St.
Louis
to
250.000
City
These
of
Bank
Farmers
earnings are ex¬
recoveries
reserves,
of
and
secur¬
except for $1,which, to¬
recoveries
New
York,
plus.
York
City banks over
1943, and longer,
gether with a $6,250,000 distribu¬ appears both interesting and fa- -——- ••
tion-* by
the City -Company of -vorable.
■A
i
f-
j.'
i;
i>v
i.v-.t-
;i-
j
>•
i v.
:
■»
*
11' .**•(>
»<
iv < (»
''
J
•
a«i
•
i
135 South La Salle Street.
past twenty-two
say
years
For the
Mr. Lind¬
has been with C. W. McNear
& Co.
-
Volume
:/; .;; THE COMMERCIAL & FINANCIAL CHRONICLE
158/ Number 4194
DIVIDEND
purchases of the currency of each
NOTICES
member
however,
shall,
DIVIDEND NO. 56
consent
share
the country
of
stock
|
rell
John
capital
Mor-
TEXAS GULF SULPHUR COMPANY
:
1943.
•
"
'
a
cf record
as
Union:
the
the
under
'
New
•
request
provisions
of their quotas shall be
aT'•>.'
Prospectus
a
&
Vw-% :.-f •?■
*'
the
preceding
sentence,
right
to borrow when its holdings of
the currency of any member coun¬
try have been reduced to 10% of
the quota of that member country.
accepted by the road at 91%, the<3>
;K'I;
^
BOSTON, MASS.
bonds
=
the
IV.2
and become
ties
obligations
subject to the penal¬
the
of foreign exchange
Uniop
(arising from
in the
Giant" is the title of
the
a
icle.
; formula which will give due
gard to factors such
as
provisions of the present art¬
re¬
interna¬
1
•
HI. Monetary Unit of the Union
1.
tional trade, national income, and
holdings of gold and foreign ex¬
The
Union
unit
unit
monetary
shall
of
be
such
an
of
the
international
may
be
change convertible into gold.
A
agreed (hereafter referred to as
may be levied
the Unit) and it shall consist of
[in any case where this formula
137 1/7 grains of fine gold.
The
.would be inappropriate.
name
as
^special assessment
accounts
:.(b) Payment
of
scriptions—The
Capital
t
date set by the Governing Board
;
*
shall not be changed with¬
out the approval of four-fifths of
member votes,
to
begin.
Each
member country shall pay in at
least 15% of its quota in gold and
a
country
national
Member countries shall agree
with the Union the initial values
3.
of
in national currency;
may
be
of gold
which the Union's
are
the balance
shall
Sub¬
be paid up in full on or before the
.operations
Union
kept and published in terms of the
subscrip- Unit.
^v-:;;v;V"C.
country shall
2. The value of the Unit in terms
.
on
the
depreciation
with
their
currencies
in
terms
of
the Unit and, except as
provided in paragraph IV.2 below,
gold
substitute gold for
in meeting its
quota requirements. -. The Union
.may make such arrangements as
currency
or
shall undertake not to alter these
values without the approval of the
'IV.l
of
balance
payments on
current account during a two-year
period of such magnitude that it
has
utilized, to
50%
cover
this deficit,
of its independent gold and
foreign exchange
reserves
and is,
in
addition, a net purchaser of for¬
eign exchange from the Union to
Union.
acquiring gold to
capital subscriptions.
;
(c)
pay
Change
in
Quotas
may
from
time
Board
change
their
the
extent
of
50%
of
its
quota
shall be entitled to
y
1.
basis
The
of
Union
shall
exchange
fix,
rates
the
initially
on
agreed between it and each
—
to
The
time
the
quotas of particular
countries, provided, how¬
ever, that in voting on proposals
member
to
/;Yy/YY/'t
-
member countries for the purpose
of
-
increase
quotas
the
voting
strength of each member shall be
increased or decreased to take ac¬
count of the Union's net sales
or
mem¬
ber
country, the rates at which it
will buy and sell one member's
currency
for another's and the
rates in local currencies at which
it
will
buy
and
sell
gold.
The
spread between the Union's buy¬
tunity to make such observations
it, deems
as
appropriate
No
3.
change
currencies
tries
shall
alter
the
in
of
This sponsor is
cross-section
a
thinking
on
to
are
of
invest¬
this subject. The
be
made
The
*
*
from July 12 to August 31.
bonus
current
of
issue
of
National
%
sell $2,000 or more during
period of the contest.
Sales
of any of the seven funds spon¬
sored by National will count.
must
the
vv'-•■-•
•
■
*
On June
petroleum,
/v./-.Y
following table:
J
Before Taxes
1939—$5,320,000,000
.
After Taxes
7,390,000,000
$4,088,000,000
4,847,000,000
1941^_^_——
13,938,000,000
6,857,000,000
1942
18,784,000,000
6,884,000,000
1940
Another
4,223,000,000
1,549,000.000
5,015,000,000
_
1,821,000,000
feature
of
the
service
be
value
trend
of
stock
coun¬
the
member country,
on
market
a
$46,000,000.
diversified among
99 corporations,
of
investments
largest
in
the
non-ferrous
/;;_YV
Y*
Several
*
*
months
;;;;;t r Y;.;■.
MIT's
ago
Rrevits published a chart showing
the length of past bull markets in
relation to
since
markets
months
the present one.
the six previous
of
as
1900
continued
on
The
bull
lasted
compared with
page
a
23
dura-
223)
prices.
"The
Industrial
Average
has
for a week.
But it has been marking time at
a high.
The action of the market
been
marking
time
Keystone
Custodian Funds.
Certificates of Participation
in
Trust Funds
WELLINGTON
investing their capital
as
follows:
Series
FUND
y
B-l, 2, 3 and 4 in bonds
page
Prospectus ol this Mutual Investment
through your invest¬
222)
ment
dealer
or
K-l, 2 in Preferred Stocks
from the distributor
Series
to
assets
reduction in the value of
a
of
Here is last week's forecast:
Fund available
permitted
of
of
in terms of gold or
Thus, if the Union ap¬
(Continued
had
is its weekly forecast of the inter¬
mediate
before
of the Union
the Unit.
are
securities
shortest
1st Quar.—
w.
000 in dividends.
Y;
.
Year—
:
metal,
steel and chemical groups.
Since
incorporation in 1932, Dividend
Shares has paid out over $21,000,-
■//>' '• /Y
Corporate Earnings
*:
excess
These funds
with
*
30, 1943 the assets of
Shares
in
the
vealed in the
of total sales
regular offering price
paid to all salesmen who
qualify.:
To qualify, a salesman
interesting analysis of "Corp¬
orate Earnings Trends and Stock
Prices/' The steady rise in corpo¬
rate earnings after taxes is re¬
•
of 1%
be
Securities & Research Corp.'s In¬
vestment Timing service contains
an
A cash
at
will
value
...yy
;
Securities & Research Corp. to run
Dividend
; *
;
:
.
;A "vacation cash bonus contest"
been announced by National
has
public
through the Letter.
.
seem
Series
the
member
value
ing and selling rates for member
currencies and for gold shall not the currency of
provided in
movement is resumed."
.
dealers'
are
the probabilities
taking such action."
proves a
exceed 1%. Except as
get
results
any
depreciate its
4. Deposits in terms of the Unit exchange rate to the maximum
period of time within which coun¬
may be accepted by
the Union extent of 10%. The provisions of
tries having less than $300 mil¬
from member countries upon the this paragraph shall only be ap¬
lion in gold or foreign exchange
delivery of gold to the Union. plicable once in respect of each
convertible into gold in official
Such Unit deposits shall be trans¬ member country unless the spe¬
exchange reserves may pay up ferable to other member countries. cific approval of the Union has
their gold contribution in full, the
They shall be redeemable in gold been obtained. Any member coun¬
equivalent in national currency and the Union shall maintain at try intending to depreciate its ex¬
to be paid in the interval.
Not¬ all times a 100% reserve in gold change rate under the provisions
of this paragraph shall inform the
withstanding the
provisions of against all Unit deposits.
subsequent paragraphs, the Union
management of the Union in ad¬
shall sell foreign exchange to such
vance and shall afford it an
IV. Exchange Rates
oppor¬
it deems appropriate to provide a
to
ment
member country which has had an
adverse
seen
:
conducting
nation-wide poll among dealers
a
safe¬
above,
prospects
Hugh W. Long & Co.'s New York
"Notwithstanding the provisions
paragraph
sume
York
general dis¬
Y
that the
assurance
will not be another ad¬
We must, therefore, as¬
that lower prices will be
before
the
major upward
made
Letter.
IV.2 of the text:
of
the
New
of
a
york
against it.
post-war
plans?" asks the current issue of
a some¬
different
of
"What
permissive range of
in
exchange
rates
somewhat
From
great
no
move
vance, but
folder
vidual oil stocks.
guards than those incorporated in
paragraph IV.2. The following is
a
draft
of
a
paragraph which
might be substituted for paragraph
capital
»tion of each member
of the Union
of
what greater
Series
next
for the
industry, the folder leads into a
summary of the advantages of the
group method of investing in indi¬
Washington the Canadian experts
provide for
Oil
cussion
expressed the view that it might
be desirable to
the
Stocks, Inc.
on
of loans made to the Union under
coun¬
by
gives
handsome
a
four-page, >two-color
new
Incorporated
63 wall street—new
Average.
- /-I
Study of a Growing
"Oil—A
.
be., determined
GROUP,
Bond
Fundamental Investors
same
Jones Industrial
..
shall
>
Request
on
DISTRIBUTORS
period rose 66.1%, or
nearly three times as much as the
24.4% gain scored by the Dow-
•% I ?;
try
and- Lower-Grade
Average.
prac¬
The quota for each member
19432
Medium
provisions of paragraph II.2 at 12 months shall be entitled to de¬
any time., The member country
preciate its exchange to the maxi¬
I .f II. Resources of the Union
making the loan shall have the mum extent of
■
5%; provided, how-i
| Member countries shall agree to right to demand repayment in ever, that the provisions of this
r make
the
following f resources gold to the extent of the Union's paragraph shall not apply to any
: available to
the Union: ';
gold holdings at any time and
country which holds independent
shall also have the right to de¬
1. A capital
subscription to the
official reserves of gold and for¬
mand repayment in its national
/amount of the quota assigned to
eign currencies freely convertible
currency, provided that such re¬ into
I each member country, the aggre¬
gold in amounts exceeding
gate of such quotas to be $8,000 payment does hoty reduce the 50% of its quota. No country shall
Union's holdings of that currency
million.. - ;Y''V.
be entitled to repeat the exchange
below 50%
of the quota of the
depreciation provided for in this
! Detailed provisions regarding member
country. • Member coun¬
11—Quotas and Capital Subscrip¬
paragraph without V the specific
tries shall agree to give, 30 days'
tion.
approval of the Union.
notice of demand for repayment
In the course of conversation in
V (a) Determination !of Quotas—
;
Prospectus
age and 25.3 for Standard & Poor's
capital account trans¬
actions) to the extent of at least
50% of its quota and has so been
on the average of the preceding
loans contracted under the
-Y-" Y-■ "YY Y
Dow-Jones Industrial Stock Aver¬
other than
.
a Class of Group Securities, Inc.
price advance of 44.7%. This com¬
pares with gains of 24.4% for the
the provi¬
paragraph IV.l above, any
member country which is a net
from
SHARES
Marquette
same
Since early June 1940, Manhat¬
tan Bond Fund has experienced a
Notwithstanding
purchaser
tender
•
sions of
••
the
mortgage and return
higher current yield." r
'
i
a
and
RAILROAD
portion of the
from
4V2S due 1980, which are secured
by the
provided in XI.1 below.
2.
realized
tendered
was
of
range
reinvested in Pere
Inc.'
profit to
a
from 88 to
was
substantial
funds
were
consent of the Union shall be de¬
clared in default of its
resulting in
The price
accepted
so
A
92.
The entire block of these
Fund,
Fund.
bonds
below, member
countries shall agree not to change
the initially agreed exchange rates
without the approval of the Union
and any country which alters the
value of its currency without the
paragraph
its first mortgage 5s due 1956.
owned by Manhattan Bond
on
transaction
Tillllllllll llllllllllllll HBIIIIIIIIlllllllll^
Proposes
,
^
tenders
E
right
under the provisions of paragraph
11.2; to borrow additional supplies
of the currency of any member
country it shall have the duty to
(Continued from page 220),
attempt to improve its position in
measures designed to
prevent ex¬ the currency concerned by acquir¬
cessive
short-term
borrowing ing the currency or gold from the
through the Union or the excess¬ holdings of other member coun¬
ive accumulation
of uninvested tries for payment in their national
currencies or in other foreign ex¬
foreign .surpluses, "h
y;:
5. To contribute to the re-es¬ change they need.
tablishment and development of
(b) Conditions of Repayment—
; a multilateral trading system and The Union shall have the right to
currency
tices. ; f'r ■ ;':i 't
208 So. La Salle St, Chicago
Falling squarely in the category of "things investors like to hear"
is the following excerpt from Manhattan Bond Fund's latest
monthly
report to shareholders.
•
.. v
"During June the Pere Marquette Railway Company asked for
E A. W. SMITH & CO., Inc. 5
E
111 DEVONSHIRE STREET
E
When the Union exercises its
tory trading and
Broadway, New York 5
10 Post Office Square, Boston
:
the Union must exercise its
repay
•
Investment Trusts
request
on
DISTRIBUTORS:
to acquire addi¬
supplies of the currency in
question. Subject to the provi¬
of discrimina¬
210 W. 7 St., Los
Angeles
....
authority.
resources
of
request
upon
TRUST
tional
sions
Prospectuses
-
120
INVESTORS
of
from
currency
*
NATIONAL SECURITIES & RESEARCH CORPORATION
GENERAL
until 'it has used its available
gold
of the close of business
the elimination
FIRST MUTUAL TRUST FUND
Y
countries in amounts up
row
Vice President & Treasurer
to
SERIES
Prospectus
The Union
shall not exercise its right to bor¬
John C. Montgomery,
•
INTERNATIONAL
STOCK SERIES
England
Fund
on.
domestic
to 50%
July 23, 1943.
Canada
SERIES
LOW-PRICED COMMON
-
borrow
revolving
July 14, 1943, a dividend of $1.00
per share was declared on the cap¬
ital stock of the Corporation pay¬
aHe July 30, 1943 to stockholders
on
to
member
I
the Board of Directors
er
STOCK
the
to
Paragraph II.2 shall be set out in
the rules and regulations of the
Union.
The Union's authority to
of The First Boston
on
PREFERRED
BOND SERIES
made by member countries to the
Union
regular meeting of
Corporation held
LOW-PRICED
of
The terms and conditions of loans
Treasurer.
Boston, Mass.. July 14,1943
At
the
Conditions of Borrowing—
(a)
:
divi¬
*
rH.F. J. KNOBLOCH.
-
SERIES
.
dend of 50 cents per share on the Company's
capital stock, payable September 15, 1943, to
.stockholders of.record, at the close of business
•September 1,
in
made
Union, as re¬
quired, in amounts not exceeding
50% of the quota of each member
country. V
'.'•Vv':' ,•:r."...' J,.•
Detailed provisions regarding 2
—Loans
a
be
representative
concerned.
Loans
2.
Co., will
be
paid Ju.y 31,; 1943, to stockholders
of
record
July 17, 1943, as shown
on the books of the
Company.
Ottumwa, Iowa. Geo. A. Morrell, Treas.
&
Tghe Board of Directors has declared
the
of
INCOME
SERIES
quota of any country v/ithout the
A dividend of Twentyfive Cents ($0.25) per
\
BOND
set out in IX.3 below. No increase
JOHN MORRELL & CO.
the
/
country j in
accordance
weighted voting formula
with the
on
22V
W. L. MORGAN & CO.
Real Estate Trust
Bldg., Philadelphia
S-l, 2, 3, 4 in Common Stocks
Prospectus may be obtained from
your local investment dealer or
The Keystone Corp. of Boston
50 CONGRESS
STREET, BOSTON, MASS.
THE COMMERCIAL & FINANCIAL CHRONICLE
222
of the
Canada Proposes
International Exchange Union
if
a
the
country depreciates its ex- I for
change under the provisions of the
preceding paragraph, or if a sig¬
nificant depreciation in the value
of the currency of a member, as
determined by quotations on the
exchange markets of other mem¬
ber countries, has in fact occurred,
that country must on request de¬
liver to the Union an amount of
and
of
purpose
maintaining
principal payments on
foreign debt.
"(b) In order to promote the
regarding 1—«
Accumulating Supplies of Gold
and Foreign Exchange.
ing stocks of gold and foreign ex¬
change, no member country shall
have the right to be a net pur¬
chaser of foreign exchange from
the Union so long as that count-
and
gold
considered.
are-
Each
•
provision regarding (b)
—Restriction of Right of Coun¬
tries holding large
Independent
an amount in the currency of that
country or in gold" equal to the Gold and Foreign Exchange Re¬
resulting increase in the value of serves to Purchase Foreign Ex¬
change from the Union.
the Union's holdings.
In interpreting this provision,
V,. Operations of the Unionthe Governing Board shall give
Provisions of Special Applica¬
special consideration to the posi¬
bility to Deficit Countries
The
1.
Union
shall
,
have
the
to sell to the Treasury of
any member country (or exchange
fund or central bank acting as its
power
agent for the purpose) at the rate
exchange established by the
of
Union, currency of any country
which the Union holds, subject to
the following provisions:
(a) Without special permission,
country shall be a net pur¬
chaser of foreign exchange from
the Union except for the purpose
no
of gold and foreign ex¬
change holdings, public and pri¬
certain
of
Asiatic
countries
has long been used as
where gold
private treasure.
(c) In general, the Union shall
have the power to sell foreign ex¬
change for domestic currency to
member countries up to 200% of
:
When the5 Union's operations
excess sale of the
2.
Detailed
tion
have resulted in
100%, 150% or 200% during
consider
the
the first two,
nevertheless, with-the
of the member of th,e
representing the country
concerned, sell its own securities
approval
Board
not be
infraction
of that country the Union
mayj, in
order to increase its resources of
nation
regarded
of
as
rationing, directly to* the public or to insti¬
constituting anj tutions of member countries.
the
favored
most
8. The
obligations of commercial
treaties
the
in
except
of
case
the view of the Governing Board
the currency in question, attempt
cooperation
try
of foreign' capital:
(or repatriation) and'
program
a
investment
may sell foreign, exchange to fa¬
cilitate such capital movements.
When the Union's
3.
holdings of
the
taken;
supply
During
with
the' Union
the
any
time the Governing Board has
to believe that
reason
an
outflow
country which would bring its net-
purchases to an amount in excess
of its quota, require such
of 50%
Union
The
5.
right
at
shall
have
ber
in the country
is being rationed
the purchase by
of the rationed
enter
with
any
member
country for the
purpose
Union, for of providing an emergency supply
domestic
currency,
appropriate of the currency of any other mem¬
rectly in net: purchases of foreign amounts of any reserves it (or its ber country on such terms and
exchange by that country from the residents) may hold of gold or conditions as may be mutually
Union, it shall have the right to foreign exchange acceptable to the satisfactory.
of
capital from any member coun¬
try is resulting directly or indi¬
country
require
sell
the
Union.
a
control of outward cap¬
ital movements
as
a
condition of
making additional sales of foreign
exchange to such country. Without
limiting the generality of the
(e)
visions
to
Whenever it becomes appar¬
the Governing Board that
6.
Notwithstanding the pro¬
of paragraph (c) above,
whenever
a
member
country
is
exhausting its quota more rapidly
than is warranted
in the judg¬
ent
to
the
anticipated
currency
Union's
may
demand
soon
holdings,
for
any
exhaust
movements, if
Union
shall nor¬
member coun¬
the
the
Governing
none
exist.
may
(iii) In considering applications
from
countries
which
have
been
net
purchasers of foreign exchange
from the Union for the special
permission referred to in para¬
graph V.l (a)' to purchase foreign
exchange for purposes other than
the meeting of an adverse balance
of payments on current account,
the
Governing
careful
for
the
Board
attention
to
shall
give
foreign exchange to facilitate
adjustment of foreign debts
able from the point of view of the
economic
situation
shall also
and
give special attention to
applications for foreign exchange
by member countries not in default
on
their
additional
such conditions upon
sales
of
foreign
ex¬
change to that country as it deems
to be in the general interest of the
2.
A
charge of 1% per annum
payable in gold shall be levied
against member countries on the
amount of their currency held: by
the Union in excess* of the quotas
provisions
regarding
Rationing of Scarce Curren¬
(a) The provisions of paragraph
shall come into force only
VI. 6
the Union
full its
Operations of the Union—
Provisions of Special Appliea- j
VI.
bility
to Surplus Countries
promote the most
of the avail¬
accumulating supply of
1. In order to
effective
able
gold
and
and
sources
utilization
foreign
exchange
of member countries,
re¬
each
has exercised
in
right under paragraph II.2
additional supplies of
request
member
current
account
of
exceeding in the ag¬
of the quotas of all
countries.
twtr
At
the
end
of
operation the
Governing Board shall propose a
plan for the gradual further liqui¬
years
dation, in whole
or
in
part,
through the Union, of abnormal
wartime
balances lying to
the
of
credit
member
countries
in
other member countries and other
financial
ilar
indebtedness
If the
character.
of
sim¬
a
Governing
Board feels unable to recommend
that the Union's
resources
for this purpose
be used
it shall have the
duty
to
propose
some. other
method by which the problem can
be considered:
'.
-
Each member country
1.
have
the
100
votes
shall
plus one vote fdr
equivalent; of •< each ToO-,000
„
I1& quotaf,; v \,
>
: :
All decisions,- except where
specifically provided otherwise,
shall be made by majority of the
2.
votes.
member
Notwithstanding the provis¬
ions of paragraph
1 above, in
any vote on a proposal to increase
the quota of any member coun¬
try,. member countries shall ac¬
quire one additional vote for each
100,008 Units of its contribution
to the resources of the Fund (by
: *
holdings shall1 be free from any
as
to their use for
payments within the
Voting Power.
IX.'
"
country con¬
cerned.
3^.
Union's holdings
of the local currency of a mem¬ way of original capital subscrip¬
tion or by way of loans made
ber country exceed the quota of
under the provisions of paragraph
that country the Union shall have
11.2) which has been utilized, net,
the power to resell to the mem¬
on
the average of the preceding
ber country, upon its request the
Union's excess holdings
of its year by the Union for sale to
other
member
countries;
and
currency for gold or acceptable
the
2. When
? -
cerned
4.
their
age
shall
Union
of the Union on the aver¬
...
.
X, Management
administration
The
Union shall
have the
one
of the preceding year.
1.
approves.
The
net
sources
shall lose
100,000 Units of
utilization of the re¬
each
for
vote
shall have
Union
The
3.
countries
member
exchange.
foreign
of the
Gov¬
be vested' in a
erning Board.
Each government
to buy and sell currencies shall appoint a representative and
non-member
countries, but an alternate who shall serve on
shall not normally hold the cur¬ the Board for a
period of three
power
rencies
countries
after the date of
of non-member
beyond 80 days
purchase.
5. The
-
~
t.
Union
*
-
-■
shall
years
have
subject to the pleasure of
their government. Representatives
and alternates maybe reappointed.
'
the
2'.
a
tries
and
such further
penses
Governing Board' shall
The
coun¬
steps to1 increase its
supply of this currency as it has
such
deemed
only
appropriate
possible.
and
fou,nd
*
(b) The provisions of paragraph
V.l (c) shall, if necessary, be re¬
stricted by the duty of the Union
assure
tion
cur¬
foreign exchange
meet
amounts not
select
borrow
the currency of the member
to
for
or
to
power
to
national
of
cies.
after
mem¬
member
government.secur-!
•
Detailed
6—
by
other
the
of
have
abnormal
held
in
for
try and after the Union has taken
of such countries.
foreign obligations' member country shall, on
demand and supply.
Union.
applications
where this is deemed to; be desir¬
general
place
helping to equate the anticipated
years
shall
of the country selling such
gregate 5%
the
Board shall inform the member
ment of the Governing Board, the
power to invest any of its cur¬
any
countries of the probable supply
rency holdings in government se¬
try which has been a net purchaser Board may make such recommen¬ of
this currency and of a proposed
of foreign- exchange to the extent dations to that country as it thinks
curities of the country of that cur¬
method for its equitable distribu¬
of 25% of its quota to impose re¬ appropriate with a view to cor¬
rency,
provided that the Board
tion together with suggestions for
strictions
on
outward
representative of the country con¬
capital recting
the
equilibrium,
and
foregoing, the
mally require
com¬
deficits in such country's balance
of
international
payments,
in
lestrietions
;
and
purchase
balances
balances
Union's, local' currency
the
of
into
concern,
two
Union
countries
needed
exchanges
the
through
currencies and
the*
to
arrangements
special
time
any
to
right
wartime
detailed
foreign exchange to any member
the
countries
currency
of the Union Committee appointed
the first
operation
rency
residents
investment
VIII. Abnormal Wartime Balances
currency
whose currency
and to prevent
their
may ex¬
mercial policy.,
bills of exchange,
Union's operations have
resulted in excess sales of the cur¬
as
established to deal with
of international
ternational
of any member'
country, it may require the re-,
maining member countries to pre¬
vent the sale by their residents of
each other's currencies, including
of
of; the foregoingj When-^
the
ever
paragraph,
preceding
steps to ration the Union's
the currency of a member country
generality
i
the
including but not restricted to in¬
has, under the provisions of
Board
the
be
or
matters
,
of
have
international character
ist
countries holding official reserves
with | of ■; gold and the currencies of
as may be estab¬
member countries in amounts ex-,
lished to promote international in¬
ceeding 50% of their quotas.*.
vestment, with the member coun¬
7.' Whenever
the
Governing,
in
such agencies
arrange,
ities; of member countries; to ac¬
country's prospective bal¬ to draft the report.
The report
ance
of payments is such as to shall be sent to all member counM cept deposits and to earmark gold,
(ii) The Union may require any
to issue its own obligations and' to
warrant the expectation that the tries"
member country to furnish at pe¬
and, if deemed.<• desirable,:
discount or offer them . for. sale
excess
currency holdings of the made public*
riodic intervals
statistics of its
f
*
in member countries; and to act
Union- can be disposed of in a: rea¬
4.
The Union shall have the!
balance of international payments
as
a
clearing house for the set¬
sonable time.
on current account and on capital!
right at any * time to enter, into!
tling of international movements
account and statistics of gold and
arrangements with any member
(d> In order to promote the
of funds: and gold.
>
,
>
foreign exchange holdings, public' most effective utilization of exist¬ country to borrow additional sup-'
Detailed : provision
regarding
and private.
plies of its currency on such terms
Each such member ing stocks of gold and foreign ex¬
I—General Powers of the Union.
country shall agree to furnish offi¬ change the Union may, as a con¬ and conditions as may be mutually
Member countries agree that all
dition of making further sales of satisfactory.
cers
shall
to
that the
explanations of the basis on which
such statistics are computed. If at
Union
and the duty to co-operate
with such other institutions of an
power
,
of capital subscription
or
Union may,
.
inally provided to the Union by
the
with
any inter¬
national
banks
owned
predom¬
inantly by member countries. The
%
way
have
only
try in question, and (c)
three and four years
markets of
non-member coun¬
payments on current account' and of the operation of the Union.
rency of any member country to;
tries.
In addition, whenever the
Detailed
the Union may at any time limit
provisions regarding the extent of 85% of the quota
Board has taken steps to. ration
the amounts of foreign exchange (c)—Restriction of Sales of For¬ of that country, the Union has the
the Union's supply of. the cur-r
to be sold to any member country eign Exchange to Specified Limits. authority and the duty to render
rency of any member country, it
On special vote
which is permitting significant ex¬
of the Gov¬ to the country a report embody¬
shall have the duty to re-examports of capital while having an erning Board, in which voting ing an analysis of the causes of
ing the prevailing exchange rates
adverse balance of payments on strength shall be weighted to al¬ the depletion of its holdings of
and to recommend such changes
low for the Union's net purchases the
current account.
currency
and recommenda¬ as: itmay regard asappropriate
and sales of each member coun¬ tions appropriate to restore
Detailed provisions
regarding
the; to
changed circumstances.
try's currency in accordance with equilibrium of the international
(a)—Restriction of Right of Def¬
icit Countries to Purchase Foreign the provisions described in para¬ balances of the' country concerned.:
VII. Powers of the Union
Exchange to Amounts Required to graph IX .3 below, the Union may Such recommendations may relate
—General.
Meet an Adverse Balance of Pay¬ purchase any currency in excess to monetary and fiscal policies,
1. The Union shall -have the
of these limits provided that (a) exchange rate, commercial
ments on Current Account.
policy
powers to take such actions as are
the country whose currency is be¬ and international investment.
(i) A country shall be regarded
required to carry out the opera¬
ing acquired by the Union agrees
Detailed provision regarding 3—
as a net purchaser of foreign ex¬
tions enumerated in the preced¬
to adopt and carry out measures
Report on Countries Whose Cur¬
change if as a result of the Union's
ing
paragraphs.
For
greater
recommended by the Union- tot rency Is
Becoming Scarce. •
purchases and sales of currencies
clarity, the Union shall have the
correct the disequilibrium in its
The Board member of the coun¬
the Union's holdings of its cur¬
i power to buy, sell and hold, gold,
balance of payments, or (b) it is
try in question shall be a member
rency rise above the amount orig¬
meeting an adverse balance of
of
deal
such
of
duration
to1
own opera¬
shall
(b) central' banks
with the consent of the member of
the Board
representing the coun¬
currency, f
scarce
Union
governments,
importations of goods from a
country whose currency is being
rationed by the Union shall, for,
member country
of the quota*
any
quota
ceed
also
the
,
of
country.
cumulative net sales shall not ex¬
shall
i
to the extent of 75%
currency
'
of each such member are being exhausted more rapidly
Net sales of foreign ex¬ than is warranted in the judgment
change shall not exceed 5Q% of of the Governing Board, the Board
the quota of each member coun¬ may make a report on the situtry during the first year and the ation.
Without
restricting the
the
It
per
through (a) the Treasuries, ex¬
change funds or fiscal agents of
(d) Member
countries
shall
agree that restrictions imposed by;
other member' countries on the;
vate.
country
should
appreciate, the
Union must return to that country
urgent
most
-
request for the
country shall agree to
furnrshthe Union with periodic
held by the Union. Likewise,
the currency of a particular
value
needs
point of view of the
international
economic
situation.
reports
the
rency
if
general
member
try's holdings of gold and foreign
currencies freely convertible into
in
the
ser¬
all gold transactions.
on
tions
of this provi¬ the special needs and resources of
sion, only free foreign exchange 'the various countries making the
gold (including private as well as
official holdings) exceed its quota.
crease
power
from
a
one-quarter
of
.7. In- conducting its
•
the purpose
For
charge
cent
isfying ' the
of the amounts held im¬
Detailed provision
of exist¬
most effective utilization
The Union shall make
vice
-
(c) In rationing its sales of any
currency the Union shall
be guided by the pdinciple of sat¬
foreign exchange it acquires
excess
exhausted.; 1
scarce
mediately after Joining the Union.
equal to the de¬
of that cur¬
its local currency
>
in
contractual
6-
Union's supply
currency the
of which is being
any
currencies which it needs, all gold
(Continued from page 221)
or
Union, sell to the Union, for
currency or for foreign
local
its
Thursday, July 15, 1943
an
appropriate distribu-1
among various members of
ings
to levy upon member coun¬
a pro rata share of the ex¬
operating the Union,
levy to^be made, however,
to the extent that the earn¬
of the Union are inadequate
"This
reviewed
fieio
shall
as
may
be
made
the
Union
The
shall become an ex-of-
of
member
be
of
assistants.
chief
the
of
the
Board
and
operating
The Governor
and his assistants shall hold office
for five years
for
regarding
commercial policy and
ordinated1 with those arrangements.
international
more
staff of the Board.
current expenses.
proposal will clearly have to be
in the light of such general ar¬
rangements
or
Governor
of
to meet its
one
Governor
co¬
.
and shall be eligible
reelection
and
may
be
^(Continued on page 223)
re-
Volume 158
Number
*
4194"
THE COMMERCIAL & FINANCIAL CHRONICLE
223
Calendar of New Security Flotations:
OFFERINGS
lated
V
sheet
glue.
UNITED
STATES
•'
TION
XT' United'
filed
CORPORA-
^
States' Plywood
for
Others
preferred
Address—616
York
City.
is
,
Street,
the
and
3Series
V-v'':
■
be
named
be
used
the
to
net
New
the
manufacture
tric energy.;.
ster
and
3-1.
ment."''
related
102
the
products,
and
purchase and
wood,
Douglas
is
sale
fir
also
of
hardwood
other
and
engaged
in
ply¬
plywood,
div.
and
■
the
anu
per share- by
associates.
re¬
1943,
the
preferred
at
common
Eastman, ;Dillon
&
at
$41.75
Co.
and
received
ments
Hied less than twenty
were
certain
daysMgoy
grouped according to the dates
are
days after filing except in the case of the securities Of certain foreign public authorities which
normally
become effective in seven■ daysl'i-^v^
K' These dates, unless otherwise
specified, are as of 4:30
■
-
be
its
securities
price
the
research
&
tion
has filed;
40,716
'cuv'.:
Securities & Research
registration
a
shares in
Address—120
First
trust. '
Underwriter—National
:
for
Fund.
search Corporation,
of" America
$641,000
the
be
:■•-.
of
Securities
Re¬
&
......
continuous
and
the
Offering price will
vary with the value of
share, which value in" turn will vary with
a
the
value
the
of
trust
the
fund.
underlying
•,
„
securities
in
(6-28-431.,..
-
NATIONAL SECURITIES
I;
•
&
RESEARCH
CORPORATION
v
has
filed
1
Address—120 Broadway, New
Business—Investment trust.
(
1
j: Offering-t-Effective
date "of
Statement.
registration'
'
;
(6-28-43>.
,
%
RIVERSIDE MILLS
U Riverside
;
_
.
»
,
fi""-.
.
Mills -has
1943, due Feb.
15,
1963.
|
Address—Augusta, Ga.
)•.'
Business—Company
-
devotes
its
activity
almost entirely to cotton textile by-prod¬
ucts or waste.
?:'*■ i
K.- Underwriting—No
formal
underwriting
agreement has been-entered into covering
,
the
exchange offered.
Offering—Under
tion
of
-
Riverside
plan
a
Mills
of
reorganiza¬
offers : to
the
preferred stock In exchange therefor
$120 par value in first mortgage 5V2 %
bonds, plus $2,625 in cash for each share
its
fn
amount
preferred
preferred
stock,
provided that 75%
issued and outstanding
the
of
stock
accept
the
and
same
ten¬
der their stock in exchange on or before
Sept. t, 1943, but time may be extended by
the
board.
only
be
sold
to
tire
>
The
exchanged
raise
which it does
disposed
Should
stock
purchase
or
and
re¬
the
reimburse
to
or
shall
for preferred stock which it may
before- plan
becomes
effective,
company
purchase
and
issue
preferred
to
stock
this
of
for
money
preferred
be
bonds
of
^company
not retire
and
shall not
other
for-any
acquire
jborids not exceeding $120,000 through
S-l.
Johnson,
agreed
to
erside*
than
Lane,
buy
Mills
Space
desires
$83.50
to
$100
per
Purpose—For
i
t
sell
and
ac¬
reorganizaztion.
surrended
for
'
BOND
MORTGAGE
&
Bond
&
Mortgage
ARDEN FARMS. CO.
registration
a
statement
for 26,000 shares
without par value.
of
preferred
.
,
'
,
Address—1900 West Slauson Avenue, Los
Cal.
v;-vX V;V,;
*
'buying and selling of ice cream, the proc¬
Angeles,
essing
of
of
milk,
the
and
general
business
buying and selling milk, butter, cottage
cheese,
at
various
and
eggs
wholesale
and
retail
related
in
the
to
solicit
rants,
the
and
the
the
with
shares
sold
the
exercise
of
for
all
will
company
$1 for each
If
company
If
of
Underwriting
scribe
being
for
its
for
preferred
shares
will
their
registered
each
2Mi
at
pay
are
such
sold
through the
procured
by
such
preferred
the
shares
statement
rate
held.
of
North
Proceeds—For
to
the
stock
now
share
Subscription
filed
a
cer¬
of
amount
Minnesota
Street,
1
list
is
has
100,000
Custodian
ments; this
FUNDS, INC. XV
Funds,
IncI,
has
1906
1903--_
1914--1.---
Nov.
21,
1916
".v.
jy
/■*
Custodian
1919____
.
Inc.,
for
-
+338.6
28,
1,
+371.6
16;' 1937
Apr.
trial
1943
—
measured
by
the
Dow-Jones
Indus¬
"It will be noted that the small¬
est
previous percentage
FUNDS,
a
of
full
stone
certificates
Custodian
Address—50
of
participation,
Fund,
Series
Key¬
"S-2".
Congress Street, Boston.
Underwriting
Keystone
—
Custodian
Funds, Inc., sponsor,
Offering—At
investment.
Registration Statement No. 2-5170. Form
(6-29-43).
'
'
.
from the
beginning of the
Another
interesting angle to the
position
of
the
present market is pointed out in
Co.'s
ments
Selections.
From
a
K
Business—Corporation
and
its
subsid¬
engaged in the business of
man¬
first
half
28.9%
of
1943
in
the
amounting to
20.1% for the
against
as
Underwriting—Eastman, Dillon
&
Co.,
York is named principal underwriter.
be supplied
Offering—Price to
plied by amendment.
Proceeds—Net
payment
notes
Company;
before
to
1,
of
will
to
The
be
sup¬
on
of
shares
of
prior
its
on
outstanding
Industrials, the bulle¬
before
standing
ferred
are
Sept.
Sept.
1,
1943,
outstanding
preferred
shares
stock
at
exclusive
crued
1,
stock
of
dividends
$105
share.
per
accrued
which
interest
will
be
on
pre¬
Figures
and
paid
ac¬
out of
Registration Statement No. 2-5171. Form
(6-29-43).
CALIFORNIA
California
tered
Electric
Power
first
in
the
place in
first
half
exceptional in this
of
re¬
.
"In the 47 years in which the
Dow-Jones
Average
Industrial
has
been
Stock
computed,
there have been only four other
years
rose
Co.
has
mortgage
regis¬
bonds,
exchange
with
ditional
countries
request
casting
shall call
meeting of the Board
a
considering
shall
be
any
by
the
distributed in the
following manner:
(a)
50% to reserves until
reserves
year
the members in pro-
among
Withdrawal
the
provision
regarding 2
Exchange Con¬
on
Capital Move¬
of
conditions
favorable
are
abandonment
Expulsion
for
A;
the
relaxation of for¬
or
eign exchange restrictions other
than those required
effectively to
control
capital
movements
and
each member
country shall agree
give consideration to such rep¬
resentations.
3.
To cooperate
other
member
effectively with
countries
when
such
countries, with the approval
the Union, adopt or continue
of
<
of regu¬
purpose
lating international
and
ad¬
Union.
controls for the
from the Union
coun¬
any
The Union may make represen¬
to member countries that
equal to 10% of the
are
aggregate quotas of the Union;
(b)
50% to be divided each
move¬
tations
to
the
effec¬
capital
member
movements, without the approval
of
of
one-
transactions
restrictions, except for
controlling capital
Detailed
On
convene.
the
the purpose of
The
to
as
required
other
Governing Board shall —Abandonment
hold an annual meeting and such trol Other Than
other meetings as it may be desir¬ ments:
movements of
capital.
Detailed provisions regarding 3
1. A country failing to meet its —Cooperation in '
Enforcing Ap¬
obligations to the Union may be proved Exchange Controls on
Cap¬
suspended provided a majority of ital Movements:
member
votes
decides.
so
member
end
of
of
the
Union.
At
the country
be
automatically dropped
membership unless it has
one
year
been restored to good standing
Cooperation shall include,
recommendation
that
measures
be taken:
by
can
upon
the
Union,
appropriately
>
-
(a)
Not to accept or permit ac¬
quisitions of deposits, securities or
investments
by
residents
of
any
member country imposing restric¬
tions on the export of capital ex¬
by cept with the permission of the
majority of the member votes.
government of that country and
2. Any country which has been
the Union;
a
net purchaser of foreign ex¬ >
(b) To make available to the
change from the Union may with¬ Union or to the
government of
draw from the Union by giving
any member country full informa¬
and
its
withdrawal
shall
from the date
During the inter¬
one
year
of such notice.
such
the
shall
country
same
3.
been
be subject
obligations
to
net
purchaser of foreign
from the Union may
as
in
which
much
as
giv¬
ing notice and its withdrawal shall
take effect 30 days from the date
of such notice.
that
Average
20% in the first
and
During the inter¬
the
taking effect > of notice
such country shall be subject to
the same obligations as any othermember
of
the
Union; except,
however, that no country which
has given notice of withdrawal
shall be required to make loans to
the Union under the provisions of
paragraph II.2 above.'
4. A country which is dropped
which
or
withdraws
from
mem¬
bership shall have returned to it
in
amount
its
own
currency
months.
equal to its contributed quota plus
"The
other
half-years
four
1915
.1933
excellent
first
1908 (up 23.6%);
(28.3%); 1919
(63.7%.)
In
years
went
on up
each
the
on
in
these
Aver¬
June 30.
the final rise for
46.6%;
of
to close higher
December 31 than
was
(30.2%); and
preceding
four
age
were:
1915.
the
owed
by
Union.
years
in
that
The
in
Union
which
any
country
(c)
the
residents
Such other
Union
of
that
to
enter
bilateral foreign
arrangements
tiple
measures as
the
recommend.
may
Not
4.
into
any
new
exchange clearin mul¬
practices except
nor engage
currency
with the approval of the Union.
5.
To give careful considera¬
tion to the views of the Union
existing
on
proposed monetary or
or
economic
policy
the
which would be to
effect
cause
a
of
serious
disequilibrium in the balance of
payments of the country adopting
such policy or of other countries.
6.
all
furnish
To
information
the
it
Union
needs
with
for
its
operations and to furnish such re¬
ports as it may require in the
forms and at the times requested
by the Union.
7.
To adopt
lation
or
appropriate legis¬
carry out its
decrees to
undertakings to the Union and to
facilitate
the
activities
the
of
Union.
to
shall
Judge & Co. Formed
sums
to
have
liquidate
The
the
5
its
obligation to such country.
addition
assumed
to
under
the
obligations
the
preceding
firm
of
Smith
& Judge, 2
Rector Street, New York
City, has
been dissolved and has been
ceeded by Judge &
in
XII. Policies of Member Countries
In
of
obligations of the Union to
the country and minus
In
year
81.7%;
1919, 30.5%; in 1933, 66.7%."
on
other
on all property
in the form
deposits, securities and invest¬
country; and
other
as any
Any country which has not
a
tion
of
ments
effect of the notice
member of the Union.
an
six
1908,
ELECTRIC POWER CO.
$16,000,000
prices
was
spect:
out¬
corporation's general funds.
S-l.
5.
soon
tries; and not to impose
decide.
so
val between notice of withdrawal
took
6Va%
at
1943, of its 20,939
of
7%
cumulative
$110
which
or
10-
share, and $2,303,290 to redemption
per
1943
rise
1950; $3,150,000
before
or
Manhattan
redemption
1943,
notes due July 1,
cumulative
or
Bank
$938,130
Sept.
4%
year
by amendment.
public
proceeds will be used to
$1,000,000 face amount of
of
payable
"The
selling cigars.
New
the
mittee shall
withdraw from the Union by
Shares
stock
July 1, 1943.
and
more
exchange
tin goes on to report:
Others will
and
val between notice of withdrawal
comparative
Cigar Corporation has filed
registration statement for $7,000,000 ten
year 3V4%
sinking fund debentures to be
ufacturing
every two months
and the taking
Dow-Jones
CIGAR CORPORATION
Consolidated
are
Com¬
Selected American
C-l.
iaries
Executive
comparison showing the gain for
market.
Proceeds—For
City.
the
ex-officio
frequently if the Executive Com¬
the latest isue of Selected Invest¬
Business—Investment trust.
j-
of
notice
55%
INC.
Keystone Custodian Funds, Inc., has filed
registration statement for 500,000 shares
foreign
a
member
take effect
bull market occurred
1917-19
present bull market to date."
CUSTODIAN
as
its
for¬
;
,
abandon,
ments
This compares with a rise of some
market.
Registration Statement No. 2-5169. Form
C-l. (6-29-43).
To
of
member country decides that con¬
ditions permit, all restrictions on
of
Governor
sales
eign exchange.
shall
be
itself for
and
the
gain for
during the
period when stock prices
registered an advance of 81.4%.
a
Custodian
v
by the Union
purchases
2.
may
within
exceeding the spread
a
participation,
trusst.
fixed
own
Exchange
countries
fluctuate
those
from
Average.;
25,000
range not
to
control
shall
54.5
+
permitted
to
the
i"
1942——
be
than
Union
con¬
only to the
direction ap¬
Union.
tively
other
July8, 1932_1*_
0As
has
—;
the
member
other
the
try shall be denied the privileges
of membership but shall be sub¬
ject to the same obligations as any
1929_li:
Mar.
INC.
Proceeds—For investment.
KEYSTONE
con¬
While under suspension the coun¬
81.4
+
-
1923.—
by
of
and
the
+107.2
-——
1917-1-
Nov.
.3,
July 31,
Sept. 3,
89.7
+
________
Dec; 19.
July
Keystone Custodian Fund, Series "S-l".
Address—50 Congress Street, Boston.
Offering—At
to Bull
24,
Underwriting — Keystone
Funds, Inc.; sponsor.
-
to
ex¬
para¬
with the
or
the
Committee
XI.
+144.4
Dec.
FUNDS,
of
the
Market High
.
1
19,
Funds,
Business—Investment
1903
15,. 1907-—,-™.
statement
certificates
with
r
9,
19,
Registration Statement No. 2-5168. Form
(6-29-43).
v;.::-v:Xvjv
registration
'
Bull Market-—
Dec.
Keystone
Keystone -"Custodian
'
/
•
Nov.
Jan.
Proceeds—For investment.
full
Committee
% Change*
Nov.
C-l.
a
supple¬
in
be the Chairman of the Executive
from Bear
100,000
for
Funds, Inc., sponsor.
•\ Offering—At market.
CUSTODIAN
with
sist of not fewer than 11 members.
The Chairman of the Board shall
Market Low
participation,
of
Business—Investment trust,
shares,
information
-
Keystone Custodian Fund, Series "K-2".
Address—50 Congress Street, Boston,
filed
Brevits
/.-• X
2-5167. Form
statement
—
of
•
.certificates
Underwriting
issue
recent
'
registration
KEYSTONE
connection
for
foiibwihg highly significant data. portion to their quotas.
sponsor.
Custodian
full
Executive
an
Union
(Continued from page 221)
tion thus far of only 14 months
for the present bull market.
A
.
a
in
character
matters placed before it.
6. ' Net profits earned
;
filed
consultation
for the purpose of
incomplete this week.)
Investment Trusts
CUSTODIAN
Keystone
a
member
investment.
and
of
international
the
and
sent of the Union and
extent
proved
fourth of the votes the Chairman
(6-30-1943).
(This
operating staff in
cept under the provisions of
graph IV.2 above,
rates
able
company.
trust.
Statement No.
(6-29-43).'
KEYSTONE
sub¬
one
has
Registration Statement No. 2-5174. Form
A-2.
Union
the Union
on
currencies of other countries
to alter
exchange rates
not
Members of the staff may be made
an
<
maintain by appropriate
exchange rates initially
with
available upon request of member
countries or of other institutions
once
Co.
Offering—At 100.
INC.
for
Keystone
—
named
Registration
30,000
reim¬
instead
rights
19
Underwriting—No underwriter named,
::
the
accordance with regulations estab¬
lished by the Governing Board.
CO.
investment
in
Business—Investment
in the
Inc.,
Proceeds--For investment. •'
C-l.
of
out-of-
shares
stock,
of
is
pay
such
Offering—Company has granted to hold¬
of
Inc.,
redemption
dealer.
ers
FUNDS,
Funds,
Offering—At market.
to
connec¬
all
such
share
warrants
Custodian
war¬
to
proposes
employees in
dealers
expenses.
dealers
option
solicitation.
not
security
pocket
sold
such
are
burse
company
of such
expenses
tion
of
exercise
for
1203,
Address—26 V2
of
Meetings of the Executive
Committee shall be held at least
'
v
New'Ulm, Minn. *
v
of
Funds,
products
States
Washington. Oregon and California.
Underwriting—There are no underwrit¬
ers.
Company proposes through certain
of its employees and
through security deal¬
ers
CUSTODIAN
Business—Investment
1
Arden Farms Co. has filed
istock,
board
Address'—444 Madison Avenue, New York
,
.
by; the
Series
Governor
mittee.
-
a
SUNDAY, JULY 18
|
company's
cancellation.
(6-29-43).
dated
(6-28-43).
the
The
.
CONSOLIDATED
Registration Statement No. 2-5165. Form
S-l.
the
mortgage .trust gold bonds pledged by
company as security for such note will
$500,000.
at
company.
registration
a
shares
®
-
•
fixed
public
full certificates of
participation,
Keystone Custodian Fund, Series "B-2".
Address—50 .Congress Street, Boston.; -
less
at' not
value
par
crued interest,' -'
of
3.
agreed
appoint from among its members
in
of
to
National Trust & Savings As¬
Upon the payment of such note,
amount
the Board.
face
effect
to
face
(Continued from page 222)
;
for cause at any - time
by
moved
shall select the
To
action the
economic problems and policies.
4.
The Governing Board shall
1956
(6-29-43).
filed
the
&
Co., Inc. has
such bonds which Riv¬
any
the
the
company's notes outstanding
KEYSTONE
of
jexchange;bf preferred stock purchased by
it,
bonds
Balance
ge
be
trust
of
.
purpose.
amount
an
be
may
of
to
the
holders
its
of
warrants,
1.
proceeds
giving
certain
will
first
series
MONDAY, JULY
com¬
through
of
shares
,
registered $639,000
first mortgage bonds, dated Feb. 15,
5 Va %
as
subscribed
.
Registration Statement No. 2-5164. Form
f
C-l.
funds
Registration Statement No. 2-5172. Form
principal amount of- $1,050,000.
Registration Statement No. 2-5166. Form
City;
\
\; Proceeds—For; investments
'
the
warrants
not
proceeds jvill be applied
the prepayment, so far as they
suffice,
Series.
York
-
the
After
:
"
& Research Corpora¬
registration statement for
a
price
of
directors
amendment.
Proceeds—Net
.V&
16,631 shares of National Securities
-
such
of
National Securities
r.
tion
of
are
exercise
by
to sell such of the shares of
as
Keystone
Registration Statement No. 2-5163. Form
t
filed
expiration
the
,
Proceeds—For investment.
C-l.
the
after
$641,300.
sociation.
first
with
pay the balance then due
3%. installment note held by Bank
the
on
tificates,
to
\
sponsor.
Offering—Will.'be
be
preferred
Broadway, New York. .City.
Business—Investment
i
Trust
will
pany proposes
Corpora¬
statement
Mutual
Other
amend¬
per
V" SATURDAY, JULY 17
.corporation;
by
;.•
5%
registration. statement
National
Denver.
•;
properties,
all
gold-bonds,
used
State
National
v.
Bosworth,
together
electric
redeeem
,
surrender of
STATE
:];
and
named
vv
-outstanding
will; be
rule 930(b).;
Offerings will, rarely be made before the day follow%
as
of
amount' of
S-l.
P.M. Eastern War Time
f
the
These issue*
which the registrar
become effective, that
fs twenty
will
rr'.
■
to
•to7 be
on
tion statements will in normal course
for
by the company from the sale of
mortgage
Following iFd: list ofissue*whpse^registmtjon
-
Inc.,
Proceeds—Proceeds,
used
fe t
underwriter
ment.
i
,
.
preferred stock will be supplied by amend¬
:
14,
July
paragraphs, each member country
shall undertake the
following::
Riverside,
"Vv'
Offering—Price of both bonds and prior
,
■
Offered
shares
Street,
Chanute, Loughridge & Co.,
Registration Statement No. 2-5177. Form
(7-1-431.
: X5
;
.
v
■
Blodget,
.
plywood and molded plywood; under its
trade-name "Weldwood,"-and of fabricated
airplane parts and other laminated and
\,
underwriters
'>:• ,H'v
,.\v
■
40,000
the bonds is Dillon, Read & Co., New
York,
and for the preferred stock Stone & Web¬
requirements of the corporation either
the
present
war • emergency
or
thereafter.
Eighth
Underwriting—Principal
now
during
Douglas fir plywood, hardwood
and
;,r. v;
Business—Engaged
in
the
generation,
transmission, distribution and sale of elec¬
proceeds $554,840
20,176. shares of
redeem
stock
1968,
Address—3771
by, amendment.
r
public will be sup¬
to
due
5V4%: convertible prior preferred stock, par
value $100 per share.
&
.
outstanding
at
the
redemption price of $27.50 per share. Bal¬
ance of net proceeds
will be used to meet
.Q':
in
will
,
Proceeds—Of
will
.
46th
Business—Engaged
!
and sale of
1
preferred
43/4%...
West
;
.
products
plied by amendment.
par value, and 50,000 shares- com¬
stock, $1 par value. The dividend rate
the
laminated
Offering—Price
15,000
of cumulative preferred stock Series
$100
mon
on
and
,
..
.Co.,
New York, head the group of underwriters.
Corporation has
statement
.
Underwriting—Eastman,1 Dillon
;v-
registration
a
shares
A
PLYWOOD
the
new
firm
Co.
are
suc¬
Partners
Vincent
A.
Judge and Vincent W. Judge.
The
number
will
address
and
phone
•
Thursday, July 15, 1943
224
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
Markets
Firm Trading
.
.
Ft. Pitt
.
Aeronca Aircraft
PERUVIAN BONDS
Bendix Home
Jeff. Lake
Corp
Allen B. DuMont Laboratories,
'
HO- INC.
f!ARL MARKS &
Inc.
4.50 Pfd.
Majestic Radio & Television Corp.
M. S. Wien & Co.
FOREIGN SECURITIES
Four
SPECIALISTS
Members N. Y. Security Dealers
prospects,
25 Broad
selling between $4 and $6.
New York 4, N. Y.
50 Broad Street
stocks with post-war
common
Sulphur
Twentieth Century
Fox Films
Appliances, Inc.
all issues
-
Bridge Wks.
St., N.Y.
N.
Teletype
Ass'n
HAnover 2-8780
1-1397
Y.
Trading markets and information on request
U
Spirit 0( Enteiprise
"The
(Continued from first
with our new and unman¬
to live
ageable riches, Mr. Queeny
main¬
rich in material
by comparison with
nations and with the past."
tains that "we are
things
other
-
only
he predicts
The day may come,
of "The Spirit
of Enterprise," when workers will
travel a hundred miles from coun¬
offices and factories
by helicopter bus with no greater
expenditure of time and money
for a bus-ride
through five miles of city traffic
required
is
than
today.
-
-
page)
happily,
far
with
,
rights and feelings of our
the
postwar
dustry.
-
,
that pre-fabricated houses of the. future will
be warmed by sunlike, healthful,
"Business believes
penetrating radiant heat from tiny
wires buried within walls. They
will be air-conditioned for sum¬
mer comfort, illuminated by cool,
germicidal light, and equipped
with
built-in,
low-temperature
refrigeration to keep food fresh
for months, even years.
House¬
wives'will buy fruits and vege¬
they are
abundant
and
And we
know that research is on the way
to create new fruits and vege¬
when
cheap.
bulk
in
tables
tables—larger without seeds—and
that
yields
increased
greatly
Our radios
will be static-free and television
in full color will be universal."
should cheapen them.
i
,
foresees
possibilities
other
Among
"But
other
which will
stockings
molded
and
waterproof, stain-
be
flameproof and as easily
cleaned as a pair of rubber boots.
Revolutionary new tools of sci¬
ence, he says such as the cyclo¬
tron, which accomplishes the al¬
proof,
chemist's
electron
a
one
another, and
microscope, which
the
of
into
element
ables
turning
dream
us
en¬
the first time to see
for
chemical reaction actually tak¬
ing place, may unlock great new
sources
of power so that planes
and
helicopters
powered
with
atomic fuel could stay aloft for
philadelphia
V
i'
YORK
0045
Red Rock Bottlers
Air Communications
1-570
york
new
neigh¬
General Aviation Equipt.
and many hundred
these
directed
visions," he points out, "are
and while he
imposing array of
contemporary data
an
historical and
to
Great
support his choice, he does
not,
businessmen—just by any means, find business fault¬
as the unexplored west, the dream
less.
■
of the juncture of the Missouri
"Businessmen," he says, "should
and Columbia Rivers lured Lewis be
willing to accept more of the
and Clark into their historic voy- classic conception of the free en¬
and
-
-
terprise system.; Business
recognize the justice of
should
much
emerge
he
peace
will
emerge a
nations
which
of
council
L D. Sherman & Co.
United
this
of
out
' But
hopes
among
Russia,
from this war,
Britain; and * the
States.
economy,
marshalls
promises of great adventure
which lure modern pioneers—our
scientists
Telephone WHitehall 4-7970
Bell System Teletype NY 1-2218
will,
other achievements, guar¬
rights and
BUY WAR BONDS
apply the principles of our Sher¬
and Clayton anti-trust acts
on
an
international scale to ab¬
man
olish
and
cartels
open
world
up
although
misdi- markets to vigorous, healthy, free
rected, criticism by New Dealers. competition.
Businessmen should correct the
Finally, far from advocating any
sacrifice of the social gains of
causes of the antipathy to their
the past decade, Mr. Queeny says
ways that has arisen in such pro¬
found and superb intellects as that "in a resurrection of a climate
achieved by our uniquely indi¬ that of the Archbishop of Can¬ wherein private enterprise may
vidualist American economy
terbury.
They should be willing again thrive, we need not abandon
resume of the results of our re¬
to have all conditions necessary
any of the publicly-expressed so¬
cent experiments in a planned or to a free market restored, and to
cial aims of the New Deal.
Be¬
collectivist economy.
One con¬ provide the people with the full cause/the public saw the New
clusion reached is that business, advantage of competition.
They Deal as an idealistic movement
operating under a truly free; en¬ should accept remedies that go all aimed at bettering working condi¬
terprise system, has the same ul¬ the way in destroying all obstacles tions and alleviating distress, the
timate
goal as the collectivist to free competition and open era will leave an enduring appre¬
planners
inspired by Thorstein markets."
ciation of its moral and spiritual
Veblen and the latter day prophets
Among the specific suggestions pronouncements."
of the New Deal—production for Mr. Queeny offers for the im¬
But, he warns, it is not necessary
use.
'
;;;;;;;
mediate future are a national in¬ to socialize our
economy through
.
that the man of the future
will live vigorously for <t century
ness.
will live without ill¬
We may even
discover
what
conceivably
glandular
make criminals.
defects
Being healthier,
Triumpli
American
runs
enter¬
prise?"; Mr. Queeny asks.
"The
ultimate consumers!
You and I
and 130 million other Americans.
spend our money where we
think we get the best value or
service.
All American enterprise
We
competing for our
the people who run
terprise."
is
that
people, expressing their
the market place, are
the
in
desires
much
Queeny's conclusion
Mr.
is
It
further
state-planned,
any
production sys¬
tem. This is not due to any funda¬
mental flaw in the characters of
politicians of any
under
Inevitably,
maintains.
party, he
type
any
of stock
by
and
one
interlocking
the
of bureaucracy,
public officials "can't lose by de¬
lay and inaction.
They operate
business in another.
tariffs
with
nations
against
an
equivalent standard of living and
be reconciled to a reduction of
tions
state-controlled
New Dealers or
ownership
tors
those
spiritual gains he deems
than
possible
direct¬
competi¬
prohibiting
toward the ma¬
progress
terial and
orates, mergers between
stimulate
to
likely
more
corporation
law
which would,
among other provisions, strength¬
en 4 existing
anti-trust laws by
BusiA
favor. It is ness, he suggests, must also give
private en¬ up "the special privileges it now
enjoys in the way of excessive
monopolies; they are not in com¬
petition."
'./T y';.;"!
mobiles.
would
It
have
been
a
P0PuJar industry in cutting prices
>PPointr?entv Ford had
led the
—in
production. He led in
high wages.
He was a pioneer,
proven, honest and fearless.
But
with his power to veto any sug¬
gestion with which he did not
agree, is there not a chance we
might still be riding around in
something resembling Model T's?
mass
low
against
as
standard na¬
fast as it can be accom¬
plished without disrupting our
economy." '
To
be effective,
however, he
points out that these
moves
by
business
progressive
must
be
matched by an equally enlight¬
ened attitude on the part of gov¬
ernment.
By applying Hatch Act
principles to pressure groups, he
suggests that Congress might de¬
central
der to
economic planning
in or¬
provide adequately for the
third.
lower
so-called
Expl
~
On
——
Sold
terprise, we encourage the tech¬
nological progress which brought
us to our present peak and which
greater gains for
the future.
By absorbing a part,
or even all, of the savings of tech¬
nological progress through a pro¬
promises
even
gressively
^
increasing
facturer's
excise
tax,
finance
much
more
a
we
manu¬
could
ambitious
and extensive social program
than
redistribution of our present
wealth, and we could do this with¬
out raising average prices to the
public or reducing incentives to
capital, labor or management.
any
period of years,"
concludes, "dreams
of
adequate standards of diet,
health and housing, and social se¬
"Thus,
Mr.
Quoted
York Stock Exchanae
Broadway N.Y. Blwling Green 9-7027
Bali Teletype
As
another
necessary
measure,
suggests that taxes should be
reconsidered on the basis of what
he
kind and what rates
over
will produce
greatest po¬
needed for normal
the long pull the
tential
revenue
ficit financing and
lead it
which
HAY, FALES & CO.
NY 1-61
Southern Traction 5/50
Rochester Transit Common
*
available
Circular
Blair F.
them
in,
,
never
once
recaptured'
held.
the
Had Ford been
all
011
would
over a
request
on
Claybaugh & Co.
Mr.
to
a
of reconstruction and new
trial expansion
indus¬
which lies ahead.
toward
future
dictable
abundant
a
more
world for all than any
philosophers, pessimists or
Exchange
Tele. NY 1-2178
Whitehall 3-0550
New York
Pittsburgh
Harrisburg,
Syracuse,
Beach
Miami
Sees Excellent Prospects
Electric
For Associated
Company
Electric
Associated
interesting
possibilities according to a circu¬
lar prepared by Peltason, Tenenbaum, Inc., Landreth Building, St.
Louis, Mo. Copies of this circular
discussing the attractions of these
issues may be had from the firm
4y2s and 5s offer very
upon
request.
Happiness Candy
4 Stores
E. W. Bliss,
Nat'l
Pfds.
Fireproofing
■!*,:
5'., 1952
S. H. dUNGER Co.
Members New York
40 Exchange
Phone
optimists, ever dreamed possible.
"To realize the four
he says, "we
DIgby
Security Dealers Assn.
PI., New York 5, N.Y'
4-4832
Teletype N..Y. 1-1779
freedoms,"
peed only one free¬
'
dom—Freedom!"
'
Pittsburgh Terminal
Warehouse &
INDEX
Stocks......... 220
Bank and Insurance
Calendar of New
Canadian
1st 5s,
'■ -V ;v''7.;, Page
";■
Security Flotations 223
216
Securities
Investment Trusts
221
Municipal News and Notes......, ^.
218
Our
Reporter's Report...............
Model T's—a ruling
Queeny rejects any supra-nation¬
Our
Reporter On Governments......
215
been made in
al, world state as dangerously im¬
Railroad Securities
practical in favor of a peace sup¬
ported, through a series of re¬
gional ' Monroe doctrines, by the
Real
1936
Current earnings,
ciation,
of
before depre¬
properties
these bonds more
present
.
Transfer'
securing
than 27% of
market price.
Memorandum
on
request«
203
have
Queeny
votes
un¬
hesitatingly for free enterprise as
opposed
for
Stock
Philadelphia
together might achieve in the pre¬
sphere, Mr.
sincerity?"
While
markets
freeing capital
the tremendous job
Member
Queeny,
of the
debt, thus forestalling the infla¬
tionary threat of continued de¬
standardize
71
from business excesses.
so
believed
commissar, might not his decision
have
been
to
concentrate
and
Members New
crippling
uncertainty at the same time it
continued to protect the people
could free business from
almost too late.: Indeed the Ford
——
-Consolidated Dearborn Com.
the
stroy the
that he refused to
change his production until it was
Ford
company
Bought
I§:;f:|4^-4i
contrary, by encouraging free en¬
operating expenses of government
and
liquidation of the national
thoroughly
osives
fUtica & Mohawk Valley Ry
•
"Who
pose
and that he
*Ft.'Dodge, Des Moines & i
and Common
Southern Ry.4/91
-
Ford had been commissar of auto¬
make it reasonable to sup¬
;
antee uniform property
well-deserved,
-
Street, New York 5
Pine
30
world
disproportionately swol¬ curity for all, could emerge a
len power of vociferous minori¬ reality."
months
exploring
our
polar
To this conclusion he adds a
ties.
By substituting regulatory
"Suppose planning had been in
wastes.
laws for government of business final
chapter visualizing the pro¬
effect twenty years ago," he offers
Advances of equal significance
as an example.
"Suppose Henry by capricious and unpredictable gress which science and business
in the field of medicine, he ob¬
boards and commissions, Congress
serves,
Candy
Sugar
Birmingham Gas
5
Teletype
Bell
telephone
Enterprise
Loft
Vicana
- -
■
NEW
STREET,
2-3000
•'
■ ,
Association
Security Dealers
New''"York
TELEPHONE
but
•
fabric
Members
'
INCORPORATED
*
,
bors.
extruded
of
clothes
are
he
■
NASSAU
RF.ctob
"Business
"that
\
4 5
with less friction .and
greater regard for the
i
,
.
:
irritable, more secure, we
shall certainly live together more
foresees/' ' he says, age. : That we have reached ma¬
turity is a conclusion of pessim¬
horseless car¬
ism. In the preservation of health
riages, with light, tough, plastic and the
conquest of happiness, the
bodies, powered by small engines
fight has just gotten under way."
using ultra
high octane motor
Much of "The Spirit of Enter¬
fuels, will continue the ceaseless
prise" is taken up with an evalua¬
progress : of
the automobile in¬ tion of ; theprogress
already
'
'
,
less
in the final chapter
try homes to
Kobbe, Gearhart & Company
'
state
planned and
In the international
three
great
powers
likely
to
Estate
.................
Securities Salesman's
Tomorrow's
Says
..*
205
Hill, Thompson & Co., Inc.
Markets and Situations
for Dealers
219
Securities
Corner........ 214
Broadway, New York 5
Tel. Rector 2-2020
Markets—Walter Whyte
..........
120
203
Tele. NY 1-2660
@FedFRASER