The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
•""***"
•US. AMU
LIBRARY
Volume
THURSDAY
New York, N. Y.,
Number 4090
156
84i
JUL 17
Final Edition
<^M»1ll^»^fW(WiW'iM^i|VIIM^lwj>^iii^<:itfi«i>iMiiiiA>iB-^)t.n^
In 2 Sections
Section 1
-
Price 60 Gents
Thursday) July 16, 1942
Copy
a
New Tax Bill
Designed le Yield $6,144,000,000
AddHienal Revenue Reported By Reuse Gronp
OUR
In
Our Reporter On "Governments"
REPORTER'S
The House Ways and Means Committee on July 14 formally
reported to the House its new tax bill designed to yield $6,144,000,000
in
additional
revenue.
Approval came
after
rejection of an
attempt to revise the proposed corporation tax increase.
Although
the new measure is the largest on record, it is still some
$2,556,000,000 below Secretary of the Treasury Morgenthau's goal of $8,700,000,000.
Of the $6,144,000,000 of<$>
additional revenue to be raised by excess-profits tax of 94%, with
the bill, nearly $5,386,000,000 is to the
corporations entitled
to
a
REPORT
There's big money to be made in Government bonds today and
there will be big money to be made over the coming
months of spec¬
that's a startling
Admittedly, it may be unwise to begin a discussion
of Government financing during this crucial war period with a
comment on "profits to be made."
But the writer is going to
tacular
begins to look as though
underwriters who had been point¬
Now it
efforts toward partici¬
their
ing
pation in the many potential pub¬
utility-municipality deals, in¬
volving
the sale
of privately
owned properties to cities around
the country, may have overlooked
one big element that may compli¬
lic
For
of
.
it
.
$10,000,000 for the 83,000 com¬
shares of the utility.
And
mon
plans had been worked out to
finance
the taking up of re¬
and mort¬
debentures
maining
the city of the necessary
of
bonds.
revenue
amount
But out of the blue came a re¬
.
The fact is that in re¬
.
from
taxes.
expected
that
to
offering.
Government
new
.
.
.
.
.
.
.
put up
sources.
Senate
The
.
and
Means
Committee
long
litigation, throws into the fu¬
ture, financing contemplated by
the city to carry through the
lead
to
(Continued on page 177)
has been exercised in
instance not to place an un¬
care
ever,
every
bearable
In all probability,
...
burden
upon
Starting
free
about
burdens
of
the
increased
rates in
existing taxes and of new
have been carefully exam¬
a few years ago, Morgenthau became highly excited
riding, decided to eliminate this class of} Government
broke
war
by 6ne regulations after the other. , 4 . When the
there were so many restrictions on subscriptions,
out,
i
...
discussion, take out your blank covering the
last issue of 2s of 1951/49 and read the regulations. ... Notice the
To
this
follow
of any
omission
restrictions
on
subscriptions.
And
.
.
.
here's
now
point: the Treasury today wants subscriptions above all else.
Morgenthau is more interested in financing the war, less in¬
volved in reform.
He's actually encouraging free riding because
the
,
at
"through
shameless
that
and
a
series of trades and
log-rolling."
"In
increasing
surtaxes
for
It
year.
was
changes ad¬
to the bill's
$1,078,000,000
yield.
The Committee on
reaffirmed
to
abnor¬
an
these
that
ded
its
July 11 also
decision
previous
to start collection of individual in¬
taxes
come
through
ductions of 5%
payroll
de¬
of taxable net in¬
beginning Jan. 1, with the
credited
against
1943
come,
amount
from
.
last
at
.
.
the argument of dealers all along that
he has awakened to
the so-called free riders are many individuals of consider¬
wealth (and thus importance to war financing projects) and
men,
of
sands
of
the
and
an
issue if not badly
an
(inactivity that helps the(
appearance
abused. ;
.
success
.* And free riders don't abuse their
privileges for their own profits are too closely tied in with a good
...
1
,
'
/
>
death
thou¬
July
on
11
when
tax
it
the
revised
The
program.
upon.
The
of
surtax
rates
(Continued
on
page
ex¬
to
.
Page
Bond
Insurance Stocks.........
Calendar of
(The)................ 171
New Security Flotations 182
Investment
Trusts.
't;,,......
and
increase
to
Personnel
Railroad
Items
172
,
Securities
............
in
bonds
anteed
Sanderson & Porter
the
world
guar¬
against depreciation
to maturity)
Office
Head
■
1
Commercial
to
45%.
the
normal
175
Market
Walter
ENGINEERSand CONSTRUCTORS
R. H. Johnson & Co.
52 WILLIAM STREET
RESERVE
CAPITAL
FUND
173
181
and
THE
CHASE
on an
active
BANK
OF THE CITY OF NEW YORK
trading
Corp.
Broaden your customer
Cairo
service with Chase
-
National Shawmut Bank
£3,000,000
.
Whyte
Says
Uptown After 3..............
First National Bank of Boston
■
PAID
173
169
markets in:
...
in value prior
FULLY
maintain
First Boston
1
.
Reporter's Report..............
Previously the Commit¬
tentatively decided
We
Cairo
Register No.
—
Securities Salesman's Corner........
Our
rate from the present 31%
surtax
of EGYPT
(Series E and F are the only
FINANCING and VALUATIONS
173
.
and, thereby, eliminate a
proposed post-war credit of 14%,
NATIONAL BANK
WAR SAVINGS BONDS
MANAGEMENT PROBLEMS
v
Municipal News and Notes
.176
Our Reporter on Governments...... 169
NATIONAL
BUY UNITED STATES
174
Selector
87 Vz %
.
In connection with
174)
INDEX
Bank and
Tomorrow's
decided to reduce the
tax from
94%
profits
cess
decided
scale
.
tion by the Committee was taken
tee had
184)
page
on
busi¬
the
and
The principle last-minute action
group
volume
and
signed
thousands
the war."
able
It gives it color
graduated
to
corporations who
injured rather than aided by
are
corporation
...
previously
normal
31%
small
among
doesn't hurt the market at all.
He said
45%,
Committee, in the opinion of
warrant
v
.
(Continued
,
tax¬
any
In this respect the addi¬
payer.
RIDING"
know what free riding is, of course.
market.
;osla
In its
effort toward this objective, how¬
REPORTS
SURVEYS AND
allowances
excess
period
you've played the market yourself for a quick turn during new is¬ taxes
taxes, due in 1944. It is reported
sue periods in recent years. . . . Maybe you haven't sold your allot¬
ined."
that the withholding rate would
ments before the payment date (and maybe that was because you
A minority report was filed by rise to 10% in 1944.
received so few bonds on your order that you could take them
Representative K n u t s o n (Rep.,
At a night session on July 10
up easily). . . . Maybe you've sold only after a few weeks of trading Minn.) objecting to the corpora¬
the House group adopted a motion
had passed. ... But you've taken quick profits on new issues— tion tax
provisions and charging
and therefore, you are familiar with this type of operation. ...
that the measure had been arrived to add 1% to the new surtax rates
of
AND CONSTRUCTION
make
mally bad business
national economy can bear.
a
that
said
their
earning
base
estimated
tional
and
QUICK ACTION ON DESIGN
could have modified
profits
...
"FREE
that free riding
deal.
addition, the House group
a previously approved
provision
whereby
corporations
which, in its opinion, the
economists
may
from
eliminated
cure
revenue
has
which
the
com¬
surtax
In
Finance
had "endeavored to se¬
every
dollar of additional
ness
tion,
the
of
during
and
normal
the group
competent
cal, but certainly the court ac¬
14%
31% to 40%.
House
majority report of the Ways
quick new issue profit.
is problemati¬
of
paid
and to raise the present
bined
Committee for hearings.
Individuals can place orders in any amount as
can
the
to
Power
where the whole matter
war,
of the measure by
(July 20) and then send
bill
selling allotments and operations by professionals and active traders
that only the real investor or the giant buyer could count on a
Just
refund
excess-profits
dispose
the
straining action by the GuadalupeBlanco River Authority, a Federal
will wind up now
post-war
about
the
the
Agency, which claims a
prior right to the private prop¬
erties by constitutional mandate.
and in¬
miscellaneous
revenue
Monday
want—without worrying about "free rid¬
they
as
security, buyers
,
is
.
.
ANALYZING
bonds through the sale by
gage
.
bank subscriptions automatically limited by
.
they
as
You
signed
subscriptions
bonds
official
the price.
under which the city was to pay
It
10% deposit. . . . In short, "free rid¬
ing" is possible again—and no holds are barred except those
placed voluntarily by the buyer or implied by statements from
long
city, basis for the transfer of
properties of the San Antonio
Public Service Company had been
reached
with
an
approximate
been
internal
has removed all rigid restrictions on
of
ing" rules."
had
$758,000,000
program
will
longer are
many
banking group acting for
contract
be derived from corporate
dividual
taxpayers
and
the
capital they have.
No longer must individual
subscribers show proof of their ability to pay for every bond they
order.
Banks and insurance companies today can order as
the
A
.
,
angle for the moment—taking for granted
of the nation recognize the importance
investors
...
institutional
No
the
upon as
the
And how.
amount
Traction
of $34,600,000 agreed
Admittedly,
.
Let's start from the beginning.
Company.
overall price
.:
.
by this time or heaven help
national economy!—and concentrate on the money to be made.
.
.
that
the American Light &
a
either
supporting the financing
our
City of San Antonio, Texas, and
With
borrowing.
.
.
the first such
deal was well along toward suc¬
cessful conclusion between the
„
.
cent months, the Treasury
brief spell this week
a
appeared
.
brush aside the patriotism
that
things a bit.
cate
Treasury
statement.
Mass.
£3,000,000
correspondent
Bonding & Insurance
'Established 1927
San Francisco
NEW YORK
Chicago
INVESTMENT
*
SECURITIES
64 Wall Street,
Established
Wilkes
New
York
Stock
Exchange
New
York
Curb
Exchange
Cotton
Exchange
York
New
Chicago
New
Board
of
Orleans Cotton
And
Inc.
Exchange,
Commodity
other
Trade
7
Towns
NEW
finest contacts in
BOSTON
"
CHICAGO
to
Kenya
PITTSBURGH
GENEVA, SWITZERLAND
Security Dealers
Tel. REctor 2-3600
Teletype N. Y.
Philadelphia Telephone:
Boston
Telephone:
•
and
Colony
Office:
Phone—Hubbard
Member
Federal Deposit Insurance
8360
Corporation
Teletype BS 568-569
-
in. India,
1-576
Enterprise 6015
Enterprise
1250
and
!
E.
Capital.
Capital
Reserve
Fund
Bank
conducts
banking
and
Trusteeships
also
..
Kenya
Inquiries invited
Zanzibar
.£4,000,000
£2,000,000
£2,200,000
every
exchange
and
Reorganization Bonds
C.
and
Paid-Up
The
*
Uganda
Burma, Ceylon,
Aden
in
Bishopsgate,
26,
Subscribed
Ass'n
New York
45 Nassau Street
Government
*the
London,
INCORPORATED
DETROIT
Boston
Railroad Bonds
Bankers
Kobbe, Gearhart & Co.
Y.
Y. Phone CAnal 6-2610
N.
in
Underlying Mortgage
Securities
N.
the
SUDAN
Boston
of INDIA, LIMITED
Head
Members
the
Milk Street
NATIONAL BANK
Over -The * Counter
YORK
and
facilities
MAY & GANNON
i
Exchange
Exchange Bldg.
C.
•
Colony
Cotton
E.
Barre
Branches
N. Y.
all
in
principal
EGYPT
~
Exchangee
Street,
Branches
?
Williamsport
Trading Markets, always
thru
AGENCY
William
King
31
Watertown
r
Actual
Memberi
•
Albany
Pittsburgh
1856
H. Hentz & Co.
LONDON
and
6
PHILADELPHIA
BOSTON
Troy
•i;
,
New York
description
of
HART SMITH & CO.
Members
New
Executorship*
Dealers Assn.
52 WILLIAM ST., N. Y.
business
undertaken
York Security
If
•
HAnover 2-0980
CUARANTEED RAILROAD
(h.
STOCKS-BONDS
.—XJ—CJ
Bell Teletype NY
1-395
Telephone
New
York
Montreal
Toronto
BO.
Gr.
9-6400
52 Broadway
NEW YORK
Teletype
N.Y.
1-1063
s
THE COMMERCIAL
170
& FINANCIAL .CHRONICLE
Thursday, July 16, 1942
Price
ceilings are being punc¬
by one; farm prices
have soared on the prospect of
100% parity loans; living costs are
rising;
further
wage
increases
seem
almost certain
(the latest
proposal is that wage increasas be
paid in war bonds), and most
tured
Firm Markets
Phila. & Reading Coal & Iron
4
5/1973 C/Ds—8/1949
Houston Oil Preferred
American
'
'
said
week
Schoonover, deWillers & Co.
will
INO.
S. BROADWAY
YONKERS.
N.Y.
MArble 7-8500
Bell
NY
Teletype
the
income
things for which the
be
spent:—think
implications!!)
1-2361-
Certainly
V
in
May Be In Offing mm
30 Broad Street
Further
extension
of
the
recovery movement during the past
principal impetus in the rather substantial seasonal
mid-year reinvestment demand. | ,:'• T:;v:
V-L'
New York
t
week found
Telephone:
Bell Teletype:
WHitehaU 4-4?50
NY 1-636
To
Denver Bond Club &
its
large extent such demand centered in the hedge type
—as
we
surmised it would -r although it was suf¬
ficiently broad to subsequently embrace practically the entire list; ,;
Developments are beginning to#.It seemed like cold logic, to us
shape, in our opinion, where a:
still more powerful demand may,, at least, to reason that war news
in the not too distant future, be-! for about
the first
six, months,
we
gin to manifest itself in a more would be bad marketwise
aggressive spirit and we believe! pointed out on numerous occa¬
a
very
inflation
issues
,
DENVER, COLO.—The
Invest¬
together
with the Denver Bond Club will
ment Bankers Association
Annual Frolic
Fri¬
on
day, August 7, at the Cherry Hills
Country Club.
t
*
Events will include
shoes,
shooting,
will
be
dinner
bicycle race, skeeter
etc.
In addition, there
beer, and
plenty of free
will
•
be
in
served
the
There will he the usual
number of
which
golf, tennis,
a
evening.
prizes, the majority of
will
Elmer
consist
of
war
bonds.
Longwell of Brown,
Schlessman, Owen & Company, is
Chairman
of the. Entertainment
that
investors should
&
Higgins
F. T,
<
seems
sions
herein
that
the -last
in
buying
Politics
dominating
the
likely
are
op-j
influence
of events
course
ing months.
4.<
■> <
be
considered, marketwise at least,
in shaping
of minor importance. :• Obviously
during comthe market's
attention
is * being
;
.
Street for the Commerce and
dustry
after-the-war
•
focused
The elections this fall—the first
on
the main
the
after
major
election,
tax
Pollack
has
been
firm
Sutton
Mr.
associated
for
many
j
past month,^or so.
BOSTON, MASS.— Charles
What might
happen
marketwiser we would, Carney and James R. Mellen, both
ask, if the Senate (which is noted, formerly associated for a number
the' development of •* a
Western offensive against
major
office are ob¬
Germany.
importance. J
investor;
Higgins in the past
was
with
Burr & Co. and Bond & Goodwin
and
in the securities business
was
for
Western Europe?
with
years.
Surely
pitious conditions.
War
In
•
;
■
of
:
h
a
*
porate managements
:
newed
the first
place, consider the
military situation — in retrospect
Next, consider developments in
as
well as in prospect.
"
1 the domestic situation.
Now note
>
son,
the
pleased
are
ney
securities
and
of
the
specialist
to announce
the association with
our
as
a
vice president
Mr.
in
Gas
number
his
own
of
years
LESTON B. NAY
(formerly vice president of Webber, Darch
&
Company)
in
Wall. Street and
was
in
the
partment
of
trading
Edward
A.
e
are
also
pleased
to announce the association
of
de¬
Purcell
Mr. VINCENT T. KANE
and
Arkansas Power &
$6
& $7
$7 Preferred
as
Co-Managers of
our
Trading Department
Common
&
*
;
G.A.Saxton&Co.,Inc.
Y.
WHftehall 4-4970
Teletype NY
1-60$
and
is
a
member
the Boston
of
Albert
position
any
Mr.
of
the
University
of
market
St. Louis
Wainwright & Co., 60 State
Street, members of the New York
and
Boston
the
is
short
in^a
interest
significant
only
when
Stock Exchanges and
other national
j
ney
in
exchanges, on July
Tweedy was formerly
manager, for Smith, Bar¬
Mr.
,
.
& Co., and prior thereto was
charge of the investment
partment
Edward
he
of
B.
the
Smith
local
&
office
Co.
In
de¬
of
the
past
of
Guaranty Company of New York.
dealings.
A short
early .last April it
thing
daily,
when
when
vance
say,
it
but
volume
interest
was
513,500) is
trading
is
run¬
1,000,000.shares
is
something
is
around
less.
of
(514,100 shares—
else
500,000
Clearly the ad¬
has not been at the expense
of the "shorts."
Street, Chicago
H. C.
viewed in relation to the volume
INVESTMENT SECURITIES
South La Salle
Tweedy To Be
BOSTON, MASS. —Albert W.
Tweedy will become a partner in
appreci¬
pointed out, the
previously
All
that
we
Comm-n
105
ST.. N.
As
shares and
RYAN-NICHOLS 6- CO.
General Public Utilities
$5 Preferred
changed to
ning around,
Community Power & Light
70 PINE
*
virtually unchanged from what it
erne
Light
Preferred
White.
consultant lecturer.
21,
(both formerly with Fuller, Cruttenden & Co.)
Empire District Electric
&
lecturer at the Boston
f
the present size
Mr. DONALD B. STEPHENS
Light
Preferreds
Central States Power &
6%
as
Boston
size
W
Watson
a
School of Business Administration
showed that the short position was
•.
& Co.
'■
'
'
internal
the
'was early in April.
operated
firm
recently
cation
faculty
degree in the meantime. As
of fact, the figures re¬
leased 'during - the
past
week
and director of
Electric System is now asso¬
with them.
Mr. O'Brien
a
Stock
Public Library under the auspices
of the State Department of, Edu¬
matter
ciated
for
of
Mellen is
able
firm
■
Associated
Boston
in charge of the Boston
was
office
and
In the past Mr. Car¬
Last April we commented upon
a
Rice, Jr. & Co., 120 Broad¬
New York City, announces
O'Brien,
York
New
Exchanges.
tight technical position pre¬
vailing at that time. The situation
J. K.
A.
department, have joined the
Townsend, Dabney & Ty¬
30 State Street, members of
staff of
the
has not
S.
'
What It Takes
of the market.
Ve
Curtis,
of the
stock
re-;
a
&
manager
as,
stocks.
,
S. S. O'Bri
that
and
—
Carney
Inflation
*
way,
for
demand
with Jackson
years
Mr.
to
market
•;vl\ *:Y vw-*
•
r
a
himself.
J. K. Rice, Jr. Co.
In¬
the
uncer-1
Spicer, about $5.65 to United
to give some thought to prospecE. Higgins have been admitted to
that can advance in the face-of Aircraft, about
$2.40 to Yellow!
tive developments
in these and
partnership
with
Frederick
T. other
Such a development;
military
reverses Truck, etc.
fields, for events will surely discouraging
Sutton in F, T. Sutton & Co., 67
would certainly encourage divid-!
have a vital bearing on invest-; should be expected to give a good
Wall Street, New York City.
account of itself under more pro¬ end liberality on the part of cor-j
Mr. ment sentiment.
; '
the
of
tainties still existing., the market!
has continued to advance over the1
strategy,
war
known .until
Despite
namely,
during the war—while not involv¬
Rudolph A. Pollack and Arthur
Division
,
war
words military reverses have been
the!
v.;•.
York
-
p.
.
be
to
New
Treasury has proposed about the employee solicitation.
The
Commerce and
most drastic bill imaginable, and
Industry
Division has already approached
the
House
has
concurred; with
a
total of $500,000 since the in¬
some
exceptions.
Clearly about5
the
campaign ' on
the worst is known with respect; ception • of
and in Crimea, the market for the to
!
corporate taxes—this is prob¬ June 1.
past month or two has advanced' ably not true as regards individ¬
along a broad front — in other ual income taxes—the worst won't
portunities.
Political Considerations
Emil
Schram, President of the
Stock Exchange, has
accepted chairmanship of a com¬
mittee for special gifts in Wall
;■ -
.
for such an eventuality.: the news was bad for about nine
Interruptions in the forward: months—but this time we were
movement
are
bound to be ex-j somewhat better-prepared.; ; .
perienced from time to time but
However, despite continuing de¬
these, in our opinion, should con-i feats in China, in Egypt, in Libya,
tinue to afford suitable
.
Schram Chairman Of
to be reflected in
Could it be that the for its conservatism in tax mat¬
time for such an offensive is. ripe ters); should
really afford relief;
reaching sig-! this summer
or fall—before elec¬
to corporations from "excessive":
have been or
tions?
Such a development could excess
profits taxes.
The pro¬
will be made with due regard to
have a very important bearing on posed 14% tax refund would mean,
the
political
situation
in
its
the political situation.
; all the difference in the world toi
broader
aspects,
involving
not;
What, we might ask, would be a lot of companies—it would mean
only the conduct of the war but:
for instance about $6.80 per share:
also price control, wages, taxes - •he market's response to the sud¬
to Clark Equipment, about $2.80;
deficit financing, inflation, etc. It den announcement—and it will be
mdden—of an Allied invasion of to Jones & Laughlin, about $4.50;
therefore
behooves the
"•
Pollack
continue to i
prepare
-Committee, and will be assisted ing the Presidential
by
Earl
Scanlan of Earle
Mi viously of first rate
Scanlan
Decisions" of far
&«Company, and Phil
Clark of Amos C. Sudler,& Com¬ nificance probably
pany.' '
NY 1-1557
|!
-•
—
horse
New York, N. Y.
British
period, when
War Relief Society, according to
the public Will be so fed up with
announcement
by
Winthrop
W.
Government interference with re¬
Aldrich, Chairman of the Com¬
spect to price control, rationing;
merce and Industry Division.
•
priorities, etc., that it will demand
The goal of the 1942 campaign
its fling.
\
-P
of the
Commerce and
Industry
Taxes;;--C j;
i1
'V'.! 'if Division is the raising of $2,500,The campaign is national in
Now consider the tax situation j 000.
This is in about as much of a mess scope but highly selective as to
as price control and
the gas and prospective contributors. It is set
rubber situations,
Congress has up according to business and in¬
played^ with
the
tax
bill
for dustrial classifications rather than
months, and corporations don't geographical areas. The primary
know even at this late date what approach will be to corporations
their tax liability amounts to. The and firms; there will be no direct
the
KEIPER and ZIMM
BH 198
25 Broad St.
the
and
\
expanding demand for inflation
hedge type equities, Of course the
danger of any run-away price in¬
flation during war-time is rela¬
tively small—the real danger is in
BONDS
Orleans, La. Birmingham, Ala.
Direct Wire
some
to increase and
LATIN AMERICAN
'!
can
money
that
of
New
•
degree of pre-¬
Inevitable
in the light of political considers-!
tions. Inflationary sentiment dur¬
ing coming months seems bound'
Specialists
their
Members New York Stock Exchange
Maritime Bldg, Brown-Marx Bldg.
of
value
the
Co!
Steiner, Rouse &
people;
$30,000,000,000
than
election inflation
hold
Debardelaben 4s, 1957
American
over
;
Birmingham El. 7% Pfd;
implications is the
sharply expanding
a
have
:
more
20
BROADWAY
NEW YORK, N.Y.
REctor 2-7634
12ft
Alabama Mills
supply of cash as a result of huge
deficit financing (Jesse Jones last
and Bank Stocks
Mortgage Certificates
\>
all
prospect of
Mortgages,
County
of
potent
Colortype Pfd.
Westchester
All
one
.
in all of the
are
trying
to
say
foregoing is that the
present situation has what it takes
to
develop
a
genuine bull market.
—G. Y. Billard, J. R.
Co.
Williston &
was
an
officer
of
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4090
156
Volume
171
COMMERCIAL and
Savs,-Loan League For
FINANCIAL CHRONICLE
Patent. Office
S.
U.
Reg.
War
William B. Dana Company,,.
Publishers
•
3-3341
BEekman
;:v
■Herbert D. Selbert,
5
;
J
Editor and Publisher
'
William' Dana Seibert, President
D.
William
•
twice
;
■
[every Thurs¬
week
a
day (general news and advertising issue)
with
issue on Monday]
statistical
a
of
Fred H. Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Other
offices;
charge
Chicago—In
Gardens, London, E.C.
Copyright
Company.
William
by
1942
Dana
B.
second-class matter Feb¬
as
25, 1942, at the post office at
New York, N. Y., under the Act of Mar.
8. 1879.
;V
•/-' , 'V-: ';
ruary
States and
Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain, Mexico and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Subscriptions
United
in
Possessions $26.00 per year; in
$31.00 per year.
the fluctuations
In the rate of exchange, remittances for
foreign
subscriptions
and
advertise¬
ments must be made In New York funda.
and
Africa,'
NOTE—On account of
Australia
borrowers.
issued
BOND
&
HOME
that
LAWYERS
Y.
STATE
TITLE
&
MORTGAGE
GUARANTEE
TITLE
All
other
&
local
TRUST
40 Wall
York
New
g
St., N.Y.
Meanwhile, Fermor S. Can¬
non,-
Bell
Teletype
NY
PerHi Killinger With
Wm. J. Mericha S Co.
if-;./
tb The
(Special
Financial
Chronicle)
.
,
•
CLEVELAND, OHIO—Perth K.
Killinger has joined the staff of
Wm. J, Mericka & Co., Inc., Union
Commerce Building, members of
Cleveland
the
Stock
Exchange.
Mr. Killinger was formerly
Cleve¬
land manager for Eaton & Co.,
Inc., was with T. H. Jones & Co.,
and prior thereto was a partner
in
Killinger &' Fangboner and
Gillis, Wood & Co.
•
President of the League, has
Insurance
the
savings,
will
associations
undertake. the
informing all home own¬
whose loans are1 with them in
detail
about
the
would
be
to
re¬
Recommendations about
insurance will be that the
seriously
consider
(Special
SAN
to
The
Financial
Co.,
FRANCISCO,
317
members
of
Montgomery
the
San
Ernesl Coulon Joins
Sparks & Co.
formerly with
Street,
Francisco
is felt that the Plan
Since it
April 30 will be accept-'♦>-
on
J. J. B. Hilliard & Son from which
resigned.
v*
*' "
F. C. Adams Go. Adds
Elmer Garr To Staff
to The
Financial
Chronicle)
Mr. Carr
was
for¬
of Boston for.many
years.
DeW bonds to be
issued—and
more
particularly the 4^8, 1956 —will
The
-
der
bonds to be issued un¬
new
the
Reorganization
Plan
are
A
Collateral
and $4,150,300
Collateral Trust Income
5s, 1977. Both issues are secured
collaterally (and equally) by like
$8,500,000,000 naval
construction bill designed to add
principal
300,600.
are
secured by deposit
r
The
new
Collateral Trust Series
sels
boats.
Senate
on
June
t"f::
passage
26
was
these columns of
Such
net
income
after
lated
referred
to
in
To Be Snedeker & Co.
The firm of Snedeker & Co.,
61
Broadway, New York City, has
been formed effective today, with
Charles V. Snedeker, member of
the New York Stock Exchange,
as general partner and Edward De
Bard
as
limited
partner.
The
name of the firm was previously
In
Bailie Joins Sincere
is to
be
calcu¬
(a)
deducting
Title
Co.
Ctfs.
Mtge.
Co.
Ctfe.
Title
Co.'s
other
Trust
Ctfe.
Participations
Broadway, New York, N. Y.
HAnover
income
net
as
2-8070
Teletype
NY
1-1203
described
funds arising out of
disposition of Cuban bond hold¬
ings in excess of those securing
the Collateral Trust bonds, plus
cash
miscellaneous
sale
of
realized
other
various
Philadelphia
Bank Stocks
from
assets
Fire Association
not
Insurance Co. of North America
required in running the business.
As
sheet
footnote
a
at
Dec.
to
the
Warren
3-6s
31,
Brothers
of
ments
Phiia. Transportation Co.
balance
1941, it was
stated that $268,966 of cash on
hand was earmarked for payment
into the sinking fund upon con¬
summation of the Reorganization
Plan.
Of this amount, $195,815
represented interest received by
its
on
the' .Series
A
bonds
such
H. N. NASH & CO.
Chestnut Street,
1421
"
Phila.
Phone
Locust
lated
Teletype
I
and
date of
consummation of the Re¬
ing fund,' Sinking fund also is en¬
titled to cash arising from divi¬
& Co,::
dends
which
on ..3 pledged ; stocks
not been paid out of
paid
has
riet income subsequent to
July 31,
Alexander Bryson To Be
1941, and to any cash arising from
Wright Wood Trading Mgr.
liquidation
money
be
applied
market
of
assets,
etc.
All
fund is to
purchase * in the
in the sinking
to
of Series
257
Struthers Wells
Common
In addi¬
ment of Series A bonds/
Preferred
St
Indiana limestone
tion, at the present time, approxi¬
mately $100,000 is available for
sinking fund operations, and in¬
,
Income 6s, 1952
r
cludes the 25% of 1941 net income
allocable for
sinking fund.
Upon
out¬
H. G. BRUNS & CO.
Telephone: WHitehall 3-1223
Bell
Bill
ample coverage for the new
bonds.
This factor coupled with
ing
SAN
The
FRANCISCO,
Francisco
San
CALIF.
Stock
genthau
1-1843
Offering
announced
on
July
thereabouts, of 91-day Treas¬
or
bills to be dated July 15 and
mature
to
on
Oct.
14,
July
10, were opened
which
were
—
Ex¬
Co. has been formed as successor
Stewart, Rice & Ducato. Part¬
of the new firm, which will
on
July 13 at the Federal Reserve
banks.
\
(
The details of this issue are as
follows:
,*
ners
continue
at
216
Montgomery
Street, are Paul F. Stewart, Neil
L. Laughlin, and Robert S. Scan¬
lon, member of the San Francisco
Stock Exchange. All were form¬
erly partners in Stewart, Rice &
Ducato.
,
rV
.
i
Chicago, South Bend & j
South Shore Attractive
A bonds at not.
Total
total
applied for, $650,704,000;
accepted, $301,186,000.
Range
of
accepted
(ex¬
bids
$45,-
cepting two tenders totaling
ooo):
High —99.920
equivalent
rate
approximately 0.316%.
Low—99.906 equivalent rate ap¬
proximately 0.372%.
Average
price—99.908 equivalent rate ap¬
analysis of the
proximately 0.365%.
in
Chicago,
(6% of the amount bid for at
South Shore & South Bend Rail¬
road has been prepared for dis¬ the low price was accepted.)
change, as manager of the trading
There was a maturity of a simi¬
department. Mr. Bryson was pre¬ same sinking fund provisions will tribution by Adams & Co., 231
viously for a number of years in apply -to the Collateral Trust In¬ South La Salle Street, from whom lar issue of bills on July 15 in
copies my be obtained upon re¬
charge of trading in the local of¬ come 5s.
amount of $150,073,000.
i\, In other words, the Series A quest.
v
•
•
• *;
fice of Blyth & Co., Inc.
•/
"
exceeding par and accrued inter¬
est; or by call for redemption at
par plus accrued interest.
After
all Series A bonds are retired, the
An
interesting
current
-
situation
.
'
reported
as
Snedeker & De Bard.
6
for $300,000,000,
tenders
the
that
offered
change firm of Stewart, Scanlon &
to
NY
Secretary of the Treasury Mor-
ury
Co.
Teletype
Result Gf Treasury
As stated in the Bond Selector
Now Stewart, Scanlon
New York
20 Pine Street
sinking fund during 1942.
and
sinking fund also provides
within three months from
PH
'■*
Phone
2-2280
B
balance, or $73,151,
represents proceeds of liquidation
of certain assets, and is payable
to
the sinking fund for retire¬
the
liberal sinking fund
provi¬
(c) Federal income sions, warrant an optimistic atti¬
and excess profits taxes for the tude toward the 4%s, 1956.
preceding calendar year.
•
York
HAnover
Cuban
ning of such period on Series B
bonds,
Philadelphia
New
1477
equal to 5% of Series B of April 30, earnings outlook for
outstanding at the end of Warren Brothers is good, promis¬
period; (b) interest accumu¬
and unpaid at the begin¬
2039, Pfd. & Common
bonds.'-The
an
McGuire, Welch & Co. and in the
past was an officer pf A. J. Boldt
PHILADELPHIA, PA. —Alex¬
ander Bryson has become asso¬
ciated with Wright, Wood & Co.,
123 South Broad Street, members
of
the
Philadelphia Stock Ex¬
Co.
INC.
39
amount
that
of the measure
July 9, page 108.
of
lined above, Cuban bonds owned
4V2S,
1956, " carry
important
in excess of those pledged are to
sinking - fund
provisions.
This
be sold.
It is conservatively es¬
sinking fund provides that each
timated
that
at
least
$500,000
year 25% of the preceding year's
pur¬
net income, as defined, be paid cash will be available for
toward
retirement of
the
4V2S. chase of Series A bonds by the
(Special to The Financial Chronicle)
organization Plan, the company
DAVENPORT, IOWA-r-Arthur shall sell all Republic of Cuba
the Nation's fleet.
The measure, R. Bailie has joined the staff of 4V2S, 1955 and 1977, owned which
which places emphasis on aircraft Sincere & Co., 231 South La Salle are not pledged under the- collat¬
carriers
instead
of
battleships, Street, Chicago, 111., members of eral trust indenture in excess of
provides for the construction of the New York and Chicago Stock the amount required for exchange.
Mr. Bailie was pre¬ Proceeds from such sale of Cuban
500,000 tons of aircraft carriers, Exchanges.
500,000 tons of cruisers, 900,000 viously Davenport manager for bonds is to be paid into the sink¬
destroyers and escort ves¬
and some 800 small patrol
Invited
Mtge.
Members New York Security Dealers As»n.
above, plus
A-
1,900,000 tons of combat ships to
tons of
25%
The
on
the
outlined in the Bond Se¬
as
consummation of the Plan, as
(Special
In
ed, and approved by the Court, a bonds will be retired by the sink¬
rfiore detailed description of the: ing fund out of funds arising from
Ky. Title Trust Go.
he recently
Specialists
J. GOLDWATER & CO
.
assent of the common stock¬
the Court now awaits the
holders.
lector
H. W. Walton Joins
Signed By President
9
At the present
writing, the Plan has been assented to by the requisite number of
bondholders and owners of the three classes of preferred; for full
it is announced." Mr. Walter
had been since 1929 a partner in
was
Co., and prior thereto was
partner in Coulon, Fuller & Co.
nessy
signed
4-6551
Complete Statistical Information
bonds; this amount is to be ap¬
plied
toward
interest' require¬
Coulon
merly a partner in Carr & Hen-
$8.5 Billion Navy Bill
30, 1942.
all
and
In addition, both bonds
of various
a
capital shares of wholly-owned,
controlled
or ;
associated
com¬
panies. Under the Reorganization
Plan, both Series A and B bonds
may be exchanged for a like prin¬
cipal amount of the Cuban bonds;
howeverj the company need not
LOUISVILLE, KY—Harold W. exchange more than $1,500,000 the
Walton
has
been
appointed
a first
year,/$500,000 the second
member of the investment staff of year, - and
$250,000
each
year
; f;ff f
the Kentucky Title Trust Com¬ thereafter.
C;'f
""Mr.
Elder &
Federal Street.
July
cussed in detail in these columns on April
&
Bank
of Warren Brothers Company was dis¬
Co., 50 Broadway, New York City, equivalent face amount of Repub¬
members of the New York Stock lic of Cuba external 4^2s, 1955 and
Exchange.
The firm has offices 4V2S, 1977, the total face amount
of both issues amounting to $8,in New York and Philadelphia. ff
BOSTON, MASS. — Elmer
J.
Cr. Cowgill was
previously vice president of Carr has become affiliated with
Frederick C.
Adams
& Co.,
24
Franklin Wulff & Co., Inc.
Roosevelt
The Reorganization Plan
Series B
Stock Exchange.
President
;
$4,150,300
Series
Trust 4V2S, 1956,
Chronicle)
CALIF. —
Elvyn S. Cowgill has become as¬
sociated with Eastland, Douglass
&
•
properties to which probably be of general interest.
all
Bond
Description of the New Collateral Trust d1/^, 1956;
Sinking Fund Provisions Reviewed
insurance .approval,
the. general tendency of
institutions
new
Are
Lawyers
WARREN BROTHERS COMPANY ;
that
loan
Corporation
building and
age
pany,
Elvyn Cowgill With
Eastland, Douglass
stuff!
Dept.
WHitehall
Inquiries
amounts
of
Cuban
Ernest J. Coulon has become bonds.
For each $1,000 of Series
associated with J. W. Sparks & A and B bonds there is pledged an
1-2033
can
STREET, NEW YORK
We
advised officials of the War Dam¬
J. W.
WHitehall 4-6300
g*et
you
REAL ESTATE SECURITIES
CO.
Exchange
Exchange
Lawyers
companies
Stock
to
ex¬
date.
covering
Newburger, Loeb & Co.
Members
was
they hold title as well as all on
which they hold mortgages, v :
CO.
Obsolete Securities
WALL
99
home
Satisfaction
discussion.
associations
CO.
Perhaps
Telephone:
pressed at the procedure which has
been followed in Washington to
the
CO.
GUAR.
&
MORTGAGE
&
CO.
CO.
Members New York Stock
interest
gfet some cash to buy 1-A
Teletype NY 1-5
:
- -
classi¬
poor
invited
would- pro!-ably
quire or at least strongly recom¬
CO.
Street, New York
Telephone HAnover 2-4300
here.
quotes
in
deferred
are
managers
these
institutions
the
GUAR.
INSURANCE
TITLE
TITLE
most
of
mend it.
MORTGAGE
•
bonds
with
payments,
and di¬
financing
"in¬
sistently and strongly ''.recommend
war damage coverage," after full
said
and that
:
MORTGAGE
TITLE
LAWYERS
N.
by
i
25 Broad
-
IN
tive Vice-President of the League,
full
CERTIFICATES
•
■
of
fications,
Spencer Trask & Go.
^
In
a
special
Bulletin1', to > 3,700
savings, building and loan asso¬
ciations, Morton Bodfish, Execu¬
ers
MORTGAGE
Victory!
CLASS 3B?
Holders
"Management
job of
MARKETS FOR
Nearer
BONDS
!
PREFERRED STOCKS
possible coverage against war.
risk
among
these savings and
loan
AND COMPANY
Week
Public Utility and Industrial
est
rectors
'
Reentered
in
the
000,000 - American homes, soughtthrough its officers to get the full¬
Business Manager
Riggs,
Thursday, July 16, 1942
Published
~
llCHTMSTflll
-
One
United States Savings
and Loan League, whose member
institutions are financing some 2,-
.
of
High Grade
Damage Insurance be¬
reality the first week
a
came
July,
interested in offerings
are
Damage Insurance
War
As
Spruce Street, New York
25
We
THE COMMERCIAL & FINANCIAL CHRONICLE
172
PUBLIC
WE MAINTAIN A POSITION
UTILITY
IN
INDUSTRIAL
Chicago, South Shore &
RAILROAD
If you contemplate making additions
send in particulars to the Editor
South Bend Railroad
MUNICIPAL
NEW
YORK, N. Y.—Arthur J.
Fitzgerald,
E. H. Rollins & Sons
ACAI1YNA®COMMNY
Incorporated
INCORPORATED
SO. LA SALLE
231
CHICAGO
Boston
Detroit
Milwaukee
Philadelphia
>
to your
personnel, please
of the Financial Chronicle for vub-
lication in this column.
BONDS
New York
Thursday, July 16, 1942
Osborne
mude,
Gilbert
Hansen,
R.
J.
II.
Stanley
Gordon,
Jerome
La-
Murray
MUNICIPAL
and
.
Bertram T.
STREET, CHICAGO
Telephone Central 7540
;
associated with Hood &
Teletype CG 530
'«
PUBLIC UTILITY
Co., have
joined the staff of Cohu
Omaha
RAILROAD
Tobiason, all formerly
&
Torrey,
AND
Wall Street.
1
INDUSTRIAL
SECURITIES
BOSTON, MASS.—Lawrence M.
DALLAS
Bought
—
Sold
Dr.
Chicago, Sonlh Shore
Quoted
—
Eaton
burn
& South Bend Railroad
Pepper
us
Southwestern Securities
RAUSCHER, PIERCE & CO.
DALLAS,
TEXAS
Ft. Worth-Houston-San Antonio
DETROIT
which
is
handled
with
road
with
the Illinois
from
and
to
LISTED AND UNLISTED
Street
vice
SECURITIES
the
South
station
The
of
company
first
miles
between
DETROIT,
MICH.
'
track
%
Michi¬
Graham, Parsons Go,
'
(Special
CHICAGO,
trander
with
Financial
become
Graham,
members
Chronlclei
ILL.—Lee
has
H.
Os-
associated
Parsons
&
of the New York
Co.,
Stock
Exchange, and will be in charge of
their newly opened Chicago of¬
fice at
135
cal manager
68.98 miles
Co.
track,
main
under
13.87
line
-lease
track
and
Prior
thereto
he
with
was
W.
R.
Paul H. Davis Co.
Office In Rockford
CHICAGO, ILL.—Paul H. Davis
comprises the following: 51
&
50-ton electric
rection
Public Service Coord.
cars,
1 motor service
freight locomotive
53 freight cars, 10 cabooses,
service
Transport Bonds
of
cars.
the
1891
18 Clinton St., Newark, N. J.
MArket
York
3-3430
Phono—REctor
2-4383
filed
and
with
an
the
that
plan
a
being
con¬
application
was
was
Interstate
Commission
merce
noti¬
company
stockholders
recapitalization
sidered,
Rippel & Co.
and 9 trailer
car
Early in 1942 the
fied
Jersey Municipal Bonds
Com¬
for
authority
to put the plan into operation. The
plan provides that the Articles of
Incorporation be amended to pro¬
vide
for
class
one
of
common
capital stock to be outstanding in
the amount of 77,904 shares, each
having a par value of $50.
ST. LOUIS
The
basis
into
mon
SAINT LOU 13
509 OUVE ST.
Bell
System
on
of
Teletype—SL 80
Stock
or
owned
were
out¬
almost
Utilities, became converted
58,428 shares of new Com¬
Stock of the par value of
$50
of 1.357 plus shares
the basis
Common Stock for
share of old First Preferred.
new
each
The
19,476 shares of old Second Pre¬
(Continued
St.
Louis
Stock
on
page
H.
Starr, who
Sims
with
has
become
Salle Street.
G.
Mr. Sims
formerly vice-president of
Webber, Darch & Co. with which
had been connected for
many
years.
and Fenner &
,!
v:,y:v-;^:V>
The Financial
Chronicle)"
Beane, has become
affiliated with J. S. Bache & Co.,
16 East Broad Street.
'
(Special to The Financial Chronicle)
MODESTO,
&
is
CALIF.—Lloyd
now
with II.
G.
R. Baker
CHICAGO, ILL.
has
—
Co., Beaty Building.
joined
William M.
the
(Special
of
staff
H. C. Speer & Sons Co., 135 South
La Salle Street.
Mr, Colman was
to
The
TOLEDO,-
Financial
OHIO
Chronicle)
were
179)
&
Securities
Bank
is
on
Corporation, Whitney
Building, New Orleans, La.,
war duty.
H.
ceived
J.
Mohr,
Jr.,
has
re¬
commission in the U.
a
Frazier
Sheffer, previously
is
16th
Street, Philadelphia, Pa.,
with the U.
S.
Army,
S.
Army Air Corps and has retired
Paul H. Aves, 1916 Norfolk
St.;
U. S.
South
be
Church
the
opened by
the
-
This
branch
will
office
Paul H. Davis & Co.,
being in Indianapolis
first
which has
several
Street.
second
been
in
operation for
years.
Mr. Starr's association with Paul
H. Davis & Co.
ported in
25,
the
was
previously
Chronicle
of
continue
James
R.
Garland, formerly Bir¬
mingham
Manager for Equitable
Corporation, First Na¬
Building, Birmingham, Ala.,
war
Willis
F.
L.
John L.
Guy D. Marianette of MidwestGrains-Securities, Stapleton Build¬
ing, Billings, Mont., is serving in
the U. S. Army.
sence
Warren
leave
on
duration
of
from
S.
Putnam
Burkholder,
now
serving in the
-
ab¬
In-
Walton, formerly
pro¬
Artillery.
L.
of
Williams, a ViceMurphey, Favre &
Co., Spokane and Eastern Build¬
ing, Spokane, Wash., is
armed forces.
now
;
;
in the
/
;■
100 Broadway,
New York City, in which they are
J. Denny May, formerly pro¬
partners. Easton is serving as a
prietor of J. Denny May & Co.,
Major in the Army and Berentsen
Wheeling, West Va., has been
as a Lieutenant in the Navy.
commissioned a Lieutenant
galls
&
Snyder,
U. S.
serving as a Major in the U. S.
Army Air Corps.
R.
are
the
for
is
prietor of J. L. Walton & Co., Bellingham, Wash., has been commis¬
sioned
a
Captain in the Field
President
Ormsby MacKnight Mitchel, Jr.
indefinite leave of absence and is
J.
and
Army.
in the
duty.
Fitch, Vice-President
& Co., Inc., 77
Franklin St., Boston, Mass., is on
of
ation
pro¬
re¬
Jack S.
on
sole
as
June
In The Armed Forces
now
Hendrix
with
prietor.
Berentsen
is
business
in
John W. Easton and Thomas B.
III,
Missis¬
Army Air Corps and is sta¬
tioned at the Glades Hotel, Miami
Mitchel, Whitmer, Watts & Co.,
Beach, Fla.
Wall St., New York City, is
serving with the U. S. Naval
Henry J. Borne, who formerly
Reserve.
'•
of
14
conducted
his
own
investment
business in Fond du Lac, Wis.,
Richards, 52 Wall St., National
Exchange Bank Building,
New York City, is on duty with
is now in the military service.
the U. S. Navy.
C.
Fred
sippi representative of Equitable
Analysis On Request
New
Scheftel, 32 East 57th
York City, is in the
armed forces.
■
-
limited part¬
ner in W. R. K. Taylor & Co., 120
Broadway, New York City/ is on
duty.
W.
Thorburn Rand,
of Rand &
Co., 1 Wall St., New York City,
is serving in the U. S. Army.
ADAMS
LA
&
SALLE
CO.
STREET
Bell
Teletype CG 361
Harry A.
Filder, Jr.,
formerly
depart¬
manager of the statistical
ment of Ellis &
Co., Dixie Termi¬
nal Building, Cincinnati,
now in the U. S.
Army.
Ohio, is
Alfred R. McBride, partner of
Wright, Wood & Co., Philadelphia,
Pa., is on war duty and at present
is stationed at Camp
Shelby, Miss.
Minton M.
Clute, manager of
the Detroit, Mich., office of Straus
Securities Co., reported for duty
formerly at Camp Edwards, Mass., on June
He will be commissioned
of the Municipal De¬ 30th.
partment for Biddle, Whelen & as a Second Lieutenant with the
Co., 1606 Walnut St., Philadelphia, United States Engineering Corps,
Pa., is serving in the U. S. Army. Amphibian Detachment.
John Strawbridge, Jr.,
Manager
CHICAGO. ILLINOIS
Phone State 0101
■' '•
will
Chicago, South Shore & South Bend Railroad
SOUTH
CO.
manager of the municipal depart?
ment of E. W. Clark & Co., Locust
at
Sidney
Willard D. Litt, a
231
—
Quarters have been taken at 230
associated
was
he
W.
and
■
Chronicle)
Sills, Troxell & Minton, 209
South La
Co.
Mr.
with
Chronicle)
—
Houston, Texas, has discontinued
We Maintain An Active Market In
CHICAGO, ILL.—William Wal¬
ter
Financial
Howard
Ellis, formerly with Vercoe & Co.
Goodin
Colman
war
Financial
North
i-
(Special to
The
his securities business for the dur¬
f
The
Ill
previously
was
Herbert
*
to
Co.,
Securities
Houston & Co.
St.,
(Special
associated
Street, St. Louis, Mo.
Carson
Straus
&
to
COLUMBUS, OHIO
partnership in King, Mohr
Hendrix, First National Build¬
ing, Birmingham, Ala. The firm
Exchange
W. W. Sims Now With
become
Slay ton
Fourth
by Mid¬
ferred, 4,566 shares of which
Members
with
has
J.
Eugene
&
tional
land
Co.
(Special
Chronicle)
—
from
old
all of which
&
Chronicle)
the office of
Merrill
Lynch, Pierce, Fenner & Beane in
that
city before it was closed.
Securities
Preferred
Carroll
managed
of
standing, 42,598 shares
St/x
of
exchange for the
old outstanding capital stock is as
follows: The 43,043 shares of the
First
Carson
ILL.
& Co. ^
Real Estate Securities
New
Financial
Opens
parlor-buffet cars, 12 80-ton elec¬
tric
freight locomotive cars, 2
Established
The
Weld &
Co., members of the New York
Stock Exchange
and other ex¬
changes, have opened a Rockford,
Illinois, office today under the di¬
J. S.
to
-
was previously lo¬
for Lazard Freres &
has
all-steel passenger motor cars, 13
all-steel trailer cars, 2 diners, 2
NEWARK
CHICAGO,
South La Salle Street.
Mr. Ostrander
information, the company's equip¬
I
The
to
-
trackage rights over 28.61 miles.
According to the latest available
ment
New
now manager for Clyde F.
Co., 24 Federal Street.
Hoyt
B.
Mahon, Jr., has become associated
Pressprich & Co., White,
Co., and the Chase Harris formerly with White-Phillips Co., with First Cleveland Corporation,
miles of sidings, etc. In Forbes
Inc., Alexander & Co., Inc., Knee- Home Bank Building. Mr. Mahon
Corporation.
it operates 19.45 miles
land & Co., Inc., and John Nuveen was formerly with Bliss Bowman
line
second
addition,
of
BUILDING,
ser¬
wholly-owned
owns
main
of
and 31.54
Exchange
the
Motor coach
is- rendered
bor, Mich., by a
subsidiary. '< ."
Charles A. Parcells G» Co,
Water
of
City, Ind., and Benton Har¬
gan
Stock
is
man
Frost
(Special to The Financial
Central for pas¬
freight
*
Illinois Central.
Detroit
CHICAGO
standard
freight equipment.
The
has an operating agreement
train service to downtown
Chicago, as well as freight service
of
Securities Co.
Chicago, South Shore & South Bend Railroad operates an
(Special to The Financial Chronicle)
CLEVELAND, OHIO — Harry
Chicago to South Bend, Indiana, a dis¬
BOSTON, MASS.—Owen Grant W. A. Heinrich is now connected
tance of about 90 miles covering the large industrial area southeast
with
Borton & Borton, Inc., Union
has become affiliated with J. H.
of Chicago.
Among the communities served, the largest are Ham¬
Goddard
&
Co., 85 Devonshire Commerce Building. Mr. Heinrich
mond, East Chicago, Gary, Michigan City and South Bend, Ind.
In
Mr. Grant was formerly was in the past with Goodbody
addition to its regular passenger traffic, the road during the past Street.
with Hare's, Ltd., John C. Adams & Co.; Soucy, Swartswelter & Co.,
several years, has done a
substan-^
and Clinton Gilbert & Co.
& Co., and A. C. Allyn & Co.
v
tial
amount of
freight business
senger
PENOBSCOT
Thompson Ross
Col-
Incorporated
railroad
Members
previ¬
M.
The
Ry. & Ter. 6% 1951
on
J.
electric interurban road from
All Texas Utility Preferred Stocki
Check
Holt,
&
(Special
Southwestern Life Ins. Co.
Dallas
II.
with
BOSTON, MASS.—Morgan Sea¬
New Common Stock Has Good Earning
Power And Liberal Dividend Rate
Great Southern Life Ins. Co.
Jesse
associated
Co., are with Emerson &
Co., 19 Congress Street.
Republic Insurance
New Mexico Gas Co. Com. & Pfd.
and
ously
Volume
156"
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4090
would
back
stop
or
I did emphasize
thereabouts.
that any breaking of this fig¬
ure would throw the market
Tomorrow's Markets
into
^
and followed
reverse
Norfolk & Southern Ry. Co.
Common
it
by giving specific prices
up
Walter Whyte
102
at
which
below
stocks
,
held.
be
not
Canadian Airways,
Roper Realization Co.
recom¬
mended in this column should
Says
173
.
Common
.'j
,
Montreal Aircraft Industries, Ltd.
Subsequently
off and two
Northern Ontario Power Pfd.
the market did go
stocks
>
the
in
list
.
through their critical
broke
PFLUGFELDER, BAMPTON & RUST
levels.!
t
price reached
Averages was
making new high market
by the Dow
position weakened. Reaction 101.96.
signals
already
appearing,
though further strength with
In the last two weeks prices
blue chips leading indicated.
started another advance ex¬
Reduction of short position
ploding into a sharp rally,
bearish factor.
and crossing
108.
A great
By WALTER WHYTE ; ;;
many
people attribute this
HART SMITH & CO
Members New York Stock Exchange
I;:-.':.
But the lowest
In
Ltd.
Consolidated Theatres New Com.
: ■'>
61 Broadway
New York
c.
•
relep/ione—DIgby 4-4933
Bell
REORGANIZATION
RAILROAD
"VJ
52 WILLIAM ST., N.
Bell
Teletype—NY 1-310
HAnover 2-0980
Y.
Teletype
New York
SECURITIES
NY
1-395
Toronto
Montreal
..
.
*
the -market is up
Not only did it go up
with a zip reminiscent of the
days of 1929 but managed to
do it on a sharp increase in
trading volume as well. :
Well,
again.
*
It
■■■
*
*
/
;
.
SEABOARD AIR LINE
Western
even
about that old
bugaboo
*
*
So far the sideliners
still
position. So the
way the picture looks at this
writing is something like this:
*
*
.*
,
early
road
was
there
ever
the
among
1941
leaders
#
Two
major
have
factors
tributed to the dynamic
through
traffic
sources."
seen.
up
Pacific
ern
short
new
More
transcontinental
important,
tion in
1931
of
was
an
ities
they
a
extension
dis¬
of
repair incompatible with the
ex¬
peditious movement of any large
volume of freight.
Following appointment of trus¬
however, a comprehensive
tees,
rehabilitation program
insti¬
was
In recent years more than
tuted.
two-thirds of the mileage has been
with
reiaid
rail
new
averaging
This is un¬
railroad in the
than 100 ponds.
more
usually heavy for
western
a
territory.
At
the
same
time, Denver & Rio Grande West¬
ern
has also completed a heavy
improvement program, allowing
But
we
have
hands.' And
seems
to
a
phyindustries
so.
ical developments, new
have been established, and
a
war
on
our
service
Congress which
think
its
most
the
tion
*
*
When this column first be-
bull
market.
So
sidered advice is
as
my
at
talking "up" market, the
To the trader: The market
Averages were about
•103.
Subsequently they ral¬ must not get under the last
lied to about 106 and stopped. volume day. This means the
;At this point I predicted a lows of Juiy 9 must hold.
decline but said that any set¬
(Continued on page 181).
.gan
Dow
the
Many of these
permanent
road's
In
accre¬
economy
after
particular, the
Provo, Utah,
but Western
Lehigh Valley
We
generally
are
tered
bonds
substantial
rent
able
•'
•
of
these
bond
new
pany's
traffic and earnings posi¬
;
holders
WALL
ST.,
3-345*
Pacific
the
a
movement
of
1st
manded
,j
by the
on
back
to the
NY
1-20S*
1, 1939 and income accrues oh
securities from that date.
new
ern
Pacific bonds should be in line
be
accumulations of $72
for
a
substantial interest payment
shortly after approval.
cuit Court decision is
case
ICC
for
has
go
rehearing,
the
that
certain
to
If the Cir¬
upheld, and
the
back
to
it
almost
1st
is
5s
will
get
materially better treatment than
that originally proposed.
Under
the
to
was
to
fixed
plan
original
interest debt
be
obligations and a
$10,000,000 1st Mortgage 4%
issue
on
the
income
new
allocated
of Trustees'
of the old
$400 in
new
5s
were
allow
was
not
the terms
were
of
American W oolen
Income 4V2, $600 in
COMPANY
preferred; and 4.67 shares of
common.
Since that date, how¬
INCORPORATED
the company has accumu¬
lated a large amount of cash ($6,000,000 is' deposited under the
Trustees' Certificates alone) and
ever,
if
ATDirectors
a meetingofof the
the American
Board of
reorganization proceedings are
•
Woolen' Company held today, a
on the Preferred Stock
dividend
of
$2.00
a
•
August 12, 1942 to stockholders.
of record July 27, 1942. Transfer
hooks will not close. Checks wilT.
be mailed,
prepared a brief
memorandum on the
.
*
share on account of
declared, payable
was
arrears
We have
Ave.,.New York, N.'Y.
225 Fourth
reopened it is believed likely that
SEABOARD
and
the
fair and equitable.
This decision is being appealed to
the Supreme Court and should be
decided
early in the fall session.
.
S. CONNETT,
F
''
Treasurer
July 15, 1942.
-proposed treatment of the
HOMESTAKE
ALL-FLORIDA 6s/35
No.
roihchild
&
co.
specialists in rails
11 wall street
HAnover 2-9175
Board of
855
of
COMPANY
855
No.
Directors has
declared dividend
one-half cents
and
thirty-seven
share of .$12.58 par value Capital
Stock,
payable July 25, 1942 to stockholders
of
record
3:00
o'clock P. M.,
July 20,
1942,
<$.37Mt)
Checks
n.y.c.
MINING
Dividend
The
Copy upon request
1. h.
,
.
REORGANIZATION
to
whether
NOTICES
Holders
to receive
ICC last fall
specific enough
determination
the bonds.
of
DIVIDEND
5%
the grounds that valuation data
filed
be
of the recent
(29)
price
selling
will
This
48%
equivalent to
amount
like
Certificates.
1st
preferred divi¬
accruals.
dend
each
4l/zs and at least
representing
$60
on
account of interest on
old bond
equipment
a
of 1942 there will
end
the
confined
small
to
allocated
of the reorganization is
tive date
Jan.
of
the
interest
The effec¬
reorganiaztion.
As
fin¬
Circuit Court of Appeals
as
the
ex¬
was re¬
5s
YORK
NEW
Teletype
PROCEEDINGS
reorganization plan
will-
plan is finally upheld as
originally promulgated the West¬
ished goods.
The
balance
the securities they are
on
cur¬
the
of
the
If
large proportion of
westward
out?
market.
LEROY A. STRASBURGER & GO."
1
(
as
and dividends earned and accrued
in the
WHItehall
through
certainly be distributed to
-"
regis¬
roads
at
concessions from
coupon
recognition of the funda¬
improvement in the com¬
almost
offer
to
in
•
pects to get
not
,
Southern Pacific/ etc.
the lines of Denver & Rio Grande
Western
is
Commission
mental
under way,
now
the
lined this large cash
Lackawanna
;:
long-term im¬
The steel mills are on
plications.
if
If the plan goes
Illinois Central
;
favorable
carries
con¬
follows:
as a
the
to
war.
exist¬
in
construction of steel mill facilities
>
*
demands.
war
the
expanded,
under the stimulus of
area
will remain
im¬
ing like that. There is still • portant job is to get re-elected
plenty of life left in the old and is busy accumulating fod¬
."dog.
Yet, signals, that it der for free franking privi¬
would be foolish to ignore, leges with which to impress
are already beginning to fly! the
folks ■<.' back home.
This
on
the horizon.
These have situation,
added to a war
nothing to do with news, do¬ which, is still going badly for
mestic or foreign. They come us, are poor foundations on
from within the market itself. which to build a rip-snorting
.
industries
ing
this basis the old
On
might receive $200 in new
tion.
New York Central
into
today. If everything else were
stable I'd go out on a limb and greater utilization: of these facil¬
>
No, as I see it the time is
ities in conjunction with through
"drawing close for either grab¬ say flatly " that the market traffic. In addition to these
and
net
a
facil¬
new
condition
while still holding
1st Mortgage fixed interest bonds
the line itself had been allowed to
to
inal limits.
1st 5s
even
Chicago
trading markets In most
of the medium-priced Rail Bonds,
particularly obligations of
route.
of relatively little
significance to Western Pacific as
present the picture as it looks
so
Exchange
1st 4s for allocation to
1st 5s,
capitalization within the orig¬
tion
maintain
We
were
deteriorate
new
willing to increase the capitaliza-^
the construc¬
establishment of these
Stock
York
Nets
York
New
West¬
No^hern .California to
connecr
■tion with> Great Northern.; This
latter line,
in conjunction with
about 118-120.
Great Northern and Atchison, af¬
fords
a
new \ competing
northsouth coastal line, as well as open¬
The investor will argue (if ing up new traffic territory.
In
he feels at all certain about the years immediately following
will do
Members
of
integral part of
an
000 of
new
Construction
ated Denver & Rio Grande
This would release $10,000,-
the
Bear, Stearns & Co.
off in
cash.
the old
con¬
the Dotsero Cut-off by the affili¬
$
bing off a few profits or at
least moving all stops ahead
sharply. This does not mean
that the market is going into
an immediate tailspin. . Noth¬
Issued)
(When
change in
opening
.
the Certificates will be paid
Securities
the company's position in the in¬
dustry
WALL STREET
Reorganization
in
v ;
Information upon request
Railroad
are
to date.
•
si<
Underlying Mortgage Bonde
NEW YORK
gains and
revenue
few, if any, Class I car¬
displayed as wide
year-to-year improvement in 1942
-
,
RAILWAY COMPANY
traffic
and
economy
riers that have
"V
figures) has un¬ sell half.
doubtedly been reduced by
the current rally. Of course
You will note that in out¬
new sellers may come in and
lining the picture ahead I be¬
re
inj ect more speculative come quite certain. Allow mc
blood to an up to now anemic to hasten to explain that I'm
market. But that's something not certain at all.
I merely
that has to be
acting among
72
pushed
since.
The
.
;
best
Van Tuyl & Abbe
and .'have
higher
point of
ings will level the price range.
Talk, however, will be pre¬
shares (SEC
war
all-time peak as
an
1940
as
steadily
Unfortunately security
markets
don't ; lend them¬
selves to such delightful pat¬ the above) what's the sense
terns.
For in advancing last in getting out if they're com¬
week and this, it has given up ing back? The speculator who
considerable of its technical knows that logic, no matter
ammunition. The short inter¬ how erudite, has no place in
est that at the beginning of the stock market, will either
this month reached 514,158 get out of his line, or at best,
;
reached
nues
looking askance at this sud¬
outburst of speculative dominantly bullish, particu¬
activity and asking them¬ larly by the board room
habitues.
But a subsequent
selves (and everybody else)
reaction will carry the aver¬
"What's - all
the
shooting
about?" But if present signs ages back to about 104-106.
At this latter level the market
mean
anything, before we are
will go back to sleep again
many market days older, the
and stay there for a month or
teetering spectators will dive
so before starting off on the
in with all their clothes on,
second leg of its advance. This
and whee-ee^ away we'll go.
new
advance may carry to
Anyway that is what every¬
*
the
generation set in long before we
were actively in the war.
Reve¬
den
body hopes.
been about the
perity does not stem entirely from
dislocations, even though the com-<$
pany is
one
of the major war
beneficiaries, seems amply dem¬
onstrated by the fact that the re¬
nal technical
At that level increased offer¬
are
have
4s
possibility of highly constructive reorganization develop¬
ments before the year-end.
That the company's new-found pros¬
Thursday that
The market to go up some
prices reared up and let fly
crossing the 108 figure in the more, with individual stocks,
Dow
Industrial
Averages. particularly leaders like Steel,
This was the first time it hap¬ leading the parade, to about
111-113 in the Dow Averages.
pened since last February.
v
1st
the
and
inflation can't hold up a mar¬
ket against a weakened inter¬
last
was
Pacific
the reorganization rail bonds during the past week or so, with specu¬
lators and investors impressed with the basic traffic improvement
rise to inflation fears but talk
per
will
be
Dividend
pany,
mailed by
Disbursing
R.
Tele. NY 1-1293
n
ioao
A,
Irving Trust
Com¬
Agent.
CLARK,
Secretary.
THE COMMERCIAL & FINANCIAL CHRONICLE
174
Last Week's Market
For
v
Thursday, July 16, 1942
Flare-Up
few- days last week the. stock market "broke out in
a
and presented some
Royal Bank of Scotland
rash?
a
evidence, dlbeit thin, of getting ready to climb
to appreciably higher levels.
Various and sundry reasons were ad¬
vanced for the performance.
| •
•
,
Incorporated by Royal Charter 1727
HEAD
,
There
This Week
Bank Stocks
—
there, true it
improvement in New York City bank earnings is indi¬
General
compared with those for the
first quarter of 1942, when threat of 31% surtax, since replaced by
16% surtax proposal, caused the "setting up of large tax reserves
cated for the second quarter of 1942 as
which reduced net profits.
1
twenty-four leading banks reporting, fifteen show a gain in
Of
was
much talk of the
inevitability of inflation.
price ceilings had been punctured; and Congress
appeared reluctant to give scrappy ,<£:—:
—
unpolitical-minded Leon Henderfunds
and
for the second
quarter compared to the first. One
these
;of
which
first
the
in
Light
&
.
Company,
Baltimore,
Street,
22
Md.
Trust, Copies of these interesting analy¬
Guaranty
was
Mackubin, Legg
had
quarter
credited all earnings in excess of
ses
dividends to the reserves, to pro¬
Bank
vide for the threatened steep
rise
in surtax from 7% in 1941 to 31%
may
be had by writing to the
and
Stocks- De¬
Insurance
partment of Mackubin, Legg & Co.
3
necessary to wage war on
ing
Our
prices.
these
Votes
developments
are
three,
j
.
welfare.
to
indi-i
an
extra-conservative!
policy, in view of the large undis¬
closed equity reserves which are
understood to
ing
be
carried, includ¬
The
conducting a vigorous war on
the; price-front.
Congress may
keep him on the anxious seat and
Up from
security profits. -vv-;
grudgingly.
But
methods
tax
in
maintenance
of
the
■
;
Guaranty
^regular dividend is justified under
a
16% .surtax.
of
ume
With
financing
war
a
huge vol¬
the
on
way,
•volume expansion in investments,
low. net
at
.even
returns
.
in fact showed lower second quar-
a
recall
we
pound in
tainly
if
it
as
four
many
inflation
to
six
after
still far from invulnerable. How¬
ever,
largescale
as
investments
expansion
progresses,
of
coverage
tai>t
measure
adopted■
r
be
a
Committee
imposed.
on
5% ad valorem
agreed,
2nd
Bank' of
New
Bank
Manhattan
of
Brooklyn
1941
1942
1941
$0.92
$0.61
$0.69
York
Trust
'i
4.29
343.42-
0.25
23.96
.
■
1,27
1.26
0.42
0.60
0.62
Trust
<
■<
0.50
39.83
1.80Q
232.03
8.00Q
21.54
0.80Q
Manufacturers
Trust
0.15
0.62
•<
,
*
4.00SA
and
310.52
20.87
26.27
30.76
1,462.81
80.00Q
-
0.60Q
0.55
50.75
0.39
0.91
0.73
38.30
1.00Q
2.00Q
0.91
0.96
City
0.47
0.40
0.37
0.42
32.39
1.00SA
Trust
1.23
1.31
1.26
1.30
82.50
3.50Q
45.80
H2.00Q
0.74
0.86
0.67
0.16
0.24
0.23
0.30
67.33
tH.52
1.35
1.02
4.48
202.73
.
National
Trust
-
Trust
:
reported by bank,
moving
expense.
0.80
we
in
the
doubt that
last,
one
No bull
our
par¬
world
war
will unfold
during the present cataclysm.—
Ralph E. Samuel & Co.
John Beaver Dies
John Andrew
of the bond
.4~.6OQ
15.26
13.26
15.27
15.27
1,543.66
1T70.00Q
tlncluding City Bank Farmers Trust Co. iDue to write-off
[[Includes extra.
§Deficit.
the
&
Beaver, manager
department of Ingalls
6,150,000
8,780,000
Aggregate
Sept.,
Assets
*
£150,939,354
ALFRED
SIR
30th
'
1941
DAVIDSON, K.B.E,,
General
Head Office;
Manager
George Street, SYDNEY
The Bank of New South Wales is
and largest
1
870
the oldest
bank in Australasia.
branches
all
in
States
of
With
over
Australia,
in
Fiji, Papua and New Guinea,...
it
Mr. Henderson said there
and
efficient
was
no
imposition would result
banking
the
most
service
travellers
to
complete
.
investor*,
interested
LONDON
in
thee#-';
47
;
Walker,
Ways and Means Committee
8 eliminated from the
OFFICES:
Threadneedle
29
Postmaster 2, General
the
offers
countries. *
"very real breach in the ceil¬
a
and
traders
•
Street,. E.
C.
Berkeley Square, W. 1
7
y
i y
Agency arrangements with Banks
7y"v7:'7'
throughout the U.
S.
:
A.
July
on
pending tax measure the pre¬
viously-approved section to raise
third
second
and
charges
so as
postage
to, make these sery7
of, the
rates
on
of
the volume of postal bus-
iness be made*
?•.t
Robinson
some
(Dem.,
form of
sales tax did not press for a new
vote in the Committee.
had
mittee
•such
a
that
a
revised to
The Com¬
previously
shelved
proposal. It was estimated
general sales tax would
*
The
!j
come
$9,145,000,000.
The ad¬
in 1941 is estimated at
more
.
in any year
income
since 1920 when cash
amounted
and
000
gross
to $12,608,000,income
totaled
$15,908,000,000. From 1940 to 1941
most of the
come
increase
resulted from
income
from
in
a
farm
marketings.
From the Bureau's report,
lowing is also taken:
The final draft provides in gen¬
eral as follows,- according to the
in¬
gross
rise in cash
tional
-
$13,-
than in
Both cash income and gross
income in 1941 were higher than
1940.
yield about $2,500,000,000 in addi¬
revenues.
1940
vices indicate that gross farm in¬
957,000,000,-or 26%
.
; On the basis of a survey of
House sentiment, undertaken by
Representative
$11,830,000,000.
cluding Government payments is
thorough
the new
a
effect
Va.), advocates of
totaled
estimate of; cash farm income in¬
Mr. Walker
self-supporting.
urged ! instead that
study
000,000, and cash income including
Government
payments for
1941
class
ices
the fol¬
■■7. 7/ )'
-
Associated Press:
-
"The value of products retained
home consumption increased
for
>
from $1,233,000,000 in 1940 to $l£
,./! 1. Corporations—increase in the 421,000,000 in 1941, or 15%. The
present normal and-surtax from increase in the value of home
31
to
45%
flat 87y2%
substitution
and
excess
of
a
profits tax rate
for the present scale ranging from
.35 to 60%.;.
i ; /,
v2.w Individuals— increase
.
the
•
present normal tax rate from 4
to
6%
and
the present surtax
,
.graduated scale of 6%
on
the first
$.2,000 of net income to 13%.' Be¬
ginning in,-January, 5% of each
consumption
resulted
entirely
the higher prices of farm
products, particularly hogs,; dairy
products, poultry and eggs as the
quantity of several products was
Smaller, than in 1940/^7*
/
from
"The
estimated
the farm home
rental value
of
increased from
was
$665,000,000 in. 1940 to $706,000,000 in 1941.
7
:
;
person's taxable income would be
"Gross farm income from crops
deducted from pay checks or. pay
in 1941 totaled $5,289,000,000 and
envelopes, with the accumulations
was 33% higher .than in 1940..The
used as a credit against 1943 taxes
greatest percentage increased in
due in 1944.
7
7
income was
in
the
oil-bearing
v
3. Excises—increase in excises
crops, particularly soybeans and
on
liquor, wine, beer, tobacco,
cottonseed,
but, substantial 7 in7
cigars, train fares, telephone bills, creases were recorded for
nearly
freight and
express
shipments, all
major crops.
,
race;
.
track bets.,
•
Previous reference to the Com¬
de¬
world-wide
ticipation
247.28
3.32
0.17
0.96
National
while
bear market
12.00Q
3.00
3.00
0.16
•
0.88
Undarwriters
veloping
real
a
H8.50Q
88.91
1,207.87
1.01
nor
Liability of-Prop.
London,
•
bull
rages and spreads.
market unfolded during
1.13
15.06
0.76
-
share prices will continue to back
and fill with neither a sweeping
war
1.11
0.95
^Oper.'earnings
singularly 7 unalert,
top-rating bonds have shown
no price weakness whatsoever.)
We
continue
to
believe that
for
3.ooq:
80.00Q
0.80
17.69
2.27
correct, holders of high-
seem,
2.40Q
1.18
2.45
4.00Q ,
'.1.40SA
grades
47.57
36.23
32.40
»As
0.55
0.73
27,45
S.
32.61.
0.79
2.32
—
entire
94.10
0 75
3.41
of
173.78
0.41
0.25
0.17
U.
1.09
1.25
3.38
3.00
Public
1.05
0.25
0.16
Sterling
•
14.00Q
1I0.90Q
0.36
2.84
27.39
Trust
Kings County
Lawyers Trust
York
,
If this is
Divs.
1.11
0.25
Irving
New
.
3.04
s
Guaranty Trust
tNational
.
0.25
1.28
Trust
National
Fulton
3.96
0.30
0.40
Annual
-
$1.40Q
0.32
0.82
earnings
*Oper.
First
•
'•»'
Exchange
Empire
'
1 5.15
3.28
National
Continental
Corn
$45.04
r
National
[Commercial
6/30/42 '
4.62
1.15
'Chemical
,
Bk. Value
0.33
1.33
_j__
(Central Hanover
Chase
1st Quarter
Quarter
Reserve
£23,710,000-
ma¬
.
1942
•
£8,780,000
Fund
Mr. Henderson had
•
$0.65
Capital
Reserve
and
of
no-
1817)
ex¬
,
•
Paid-Up
l
members
WALES
(ESTABLISHED
.
.
Trust
NEW SOUTH
ing of the cost of living." J'.
Acting on the recommendation
gross
Bankers
7;77v;. banFof
New Zealand,
in
nip infla¬
,
Ltd.
Branding the tax as both "dis¬
criminatory" and "inflationary,"
doubt its
the bud then in the
a large addition of
dividends - will
blossom, .so it .cannot "seed and
improve,
as
earnings to offset rise in weight of heavier taxes is felt spread.
■ .V ;.7/;;^ V
7!
taxes and other operating costs.
The
stock v market -7 too* was
most immediately but will later
In thus expanding its holdings of
be
gradually
offset by higher strong, it was said, because Rus¬
Governments, Guaranty may gross earnings.
sian and Egyptian news spelled
V
v7
;,;
lengthen its average of maturities,
out to many that the war will be1
In
comparison with the second a
which at the close of 1941 was ex¬
long one. Quite likely;'but who
tremely short—about 2 years, 1 quarter of 1941, however, ,1942 knows?
The
ebb
and
flow- of
second quarter profits are gen err
month, even excluding holdings of
campaigns on- all fronts will con¬
ally
lower,,
because
of
the
rela?
Treasury bills. Such lengthening
tinue,
Alternating buoyancy and
;of maturities would not only im¬ tively light volume expansion in
discouragement'will" be our lot as'
earning,
assets
and
incidence
of
prove yield, but also reduce amor¬
long as the war lasts,' arid sur¬
Surpris¬
tization
charges,
Such a short higher costs and taxes.
prises will be/ as frequent and
term
average
of maturities, in ingly enough, however, five of the
precipitate in the future as they
leading
Jaanks
show
higher
profits
fact, has been understating Guar-'
have been in the past."
Certainly
in the second quarter of 1942 com¬
anly's reported earnings in com¬
the aggressive buying of equities,
pared
fo
-1941
second
quarter.
Best
parison with those of other lead¬
or
the liquidation of high-grade
of these gains is that of the Na¬
ing
banks
which keep higher
tional City Bank, whose 27% in¬ bonds, will be postponed by the
average maturities without as a
the 7 suc¬
crease
in second quarter profits prudent investor until
practical matter lowering
high
cessful end of the war is in sight
over the first quarter of 1942 car¬
standard of liquidity.
For exam¬
Until we approach that point in-t
ried the quarter's profits to a point
ple, a five year average of matur¬
vestor-caution
will
continue
to
ities is quite short and conserva¬ 17% above the second quarter of
obtain and equities will not ex¬
' ' /
tive.
Yet Guaranty would have to 1941•■;•••.
;
ceed 50% of a well-balanced, care-'
double
The following tabulation com¬
its, year-end average to
fully thought-out investment list."
that point,
and it would mean pares indicated profits of 24 lead¬
(One comment on the point that
quite a difference in earnings ing New York City banks for the
"properties" are-to be more in
when the fractional improvement' first and second quarters:
demand than
high-grade bonds.
10
of
group
^
taxes, will create
to
July
recommendation
jeopardize the price control
chinery.
the
in7short
overlooked, to
tion if not in
the
written to the Committee warning
that such a tax would seriously
forefront at this stage it requires
earnings in comparison with
little imagination to assume that
first quarter, and declines of
these two were' slight.
On the Washington will announce that,
whole, therefore, second quarter- regardless of '.apparent severity,
taxes will be upped further, wages
earnings made a* generally favor¬
able showing, although of course, will be frozen, forced savings: im¬
the margins over dividends are posed and perhaps a substantial
sales
Bank,
Australia and New Zealand
ex¬
empted from the percentage tax
and a flat levy of 5 cents a ton
cents
to
the
however, that coal should be
weeks.;:. Cer¬
comes
Deacon's
Glyn Mills & Co.
freight and express charges.
on
The
the
However, continued confidence
(
as
Only two of the leading banks
lowered
to eliminate
son
prices coming down
copper
7v
Associated Banks:
Williams
Price Administrator Leon Hender¬
■
ington;
has
House
rejected
er
large amortization fund built
a
of the 60c annual divi¬
coverage
dend.
ASSETS
£98,263,226
emptions to $500 and $1,200, re¬
spectively.
v
/''J-.
' ••
•'••••'/
,t
quarter,
TOTAL
from
are
Committee, at this session,
Committee
of
"c a tin g
above
Street, W. I
single persons and $1,500 for mar¬
ried
persons.
For
others, the
Guaranty's regular '$12
dividend, and this regular
done in the second
•
Burlington Gardens, W. I
active duty with the armed forces.
These exemptions are $750 for
the for the second quarter, unchanged sentiment we have no doubt.
annual from the first quarter.
Finally, if inflation psychology
Irving,
was de¬ however, had not reduced its first starts to take root it seems prob¬
clared for the second quarter.;; It quarter earnings to reflect heavier able. that the- entire power and
was also thought that the relaxed
taxes, as it has large equity re¬ influence of the Administration
necessity for larger tax reserves serves available, and it has been will swing into line behind Mr.
would now permit restoring some maintaining indicated profits at Henderson.
Many of.us can re¬
that
in
margin of net profits over divi¬ slightly over the quarterly divi¬ call
1937
inflationary
dends, and carrying some excess dend of 15c a share.
Unchanged thinking
and
inflationary... talk
over
dividends
into
undivided earnings, therefore, do not indi¬ started to take
hold, only to be
profits.
This, however, was not cate any different situation in immediately punctured by Wash-maintenance
income
Smithfield, E. C. 1
Charing Cross, S. W. I
.
The
■
in
OFFICES:
64 New Bond
also decided to retain present
per¬
sonal. exemptions for persons on
the powers and the funds essential
proposed
all
on
Present rates
to 77%.
'
'
6%
to
ground
82%"
$200,000.
Second, we are firmly of the
opinion that Henderson will get
give
49
(Continued from first page)
will range from 13% on the
first $2,000 of personal net income
*
7,
Huge Tax Bill
now
the Treasury on March 3.
revived
Scotland
Bishopsgate, E. C. 2
8 West
advanc¬
comments' on
Gallup polls and other
by the Secretary of
When in return is applied to the large of measuring public sentiment all
reflect the nation's desire to avoid
'the House Ways and Means Com¬ volume, of Governments carried.
mittee subsequently made the sur¬
Another leading
bank, Irving inflation, and that Congress/will
tax 16% in its tax bill, confidence Trust, again showed ,16c a share ultimately fall in, line with that
'as
LONDON
the
.
were even
throughout
.
the
son-
First, the ceiling changes were
indicated earnings^
primarily in the food and canning
as
compared, with first quarter
Ins. Stocks Look Good
fields; necessary concessions to'
net.
Another shows a large gain
stimulate larger packs by canners,'
•for the quarter, making sixteen
Brief but comprehensive analy¬
For after all, pricing that was too
but this
bank
(First National)
sis of the current situation in Mer¬
"tight" was not conducive to large
keeps receipts on a cash basis al¬
chants Fire Assurance Corpora¬ "packs" but this is a relatively
though fully accruing liabilities,
narrow problem.
In most sectors
so that quarterly earnings are not
tion, National Fire Insurance
of
our
civilian economy larger
comparable because of the influ- Company of Hartford, and St. Paul
production
is
unwanted,
hence
erice of coupon dates on earnings
Fire & Marine Insurance Com¬
price-ceilings, even if harsh are
from investments.
not
inconsistent
with
i
the
national
pany
have
been
prepared
*
by
Three
other
banks'
indicated
earnings
OFFICE—Edinburgh
Branches
was,
second quarter
,
Here and
mittee's action appeared
in these
columns of July 2, page 17*
1941 Gross Farm Income
26% Higher Than In 1940
of
income
Gross
taled 31%
more
amounted
to
Agricultural
"Cash
ernment
Bureau
29
that
cash
income
from
farm
marketings in 1941, as revised to
incorporate more complete data
Snyder, 100 Broadway, New
City since 1926, died" of a' on sales of livestock and livestock
on
July 12.
products, amounted to $11,244,-
livestock
in 1941 to^
than in 1940, and
$7,376,000,000.
The
largest! increase was, in returns
from hogs, although income from
all livestock
items
was
higher
than a year earlier.
; -
U. S. Department of
Agriculture, announced on June
The
Economics,
from
and livestock products
the
farm
income
payments
value
of
in
products
and
Gov¬
1941,
plus
consumed
farms where grown, was higher
the preceding year in
all
States except South Carolina, and
on
than
York
in that
heart attack
than 1%.
State the decline
was
less
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4090
156
I of the
The Securities Salesman's Corner
People Think Securities Firms Are A
Some
n
you
ever
numerous
se-^
their hat in the hand and will do
lost
ago
what
checking up on
situations that he never
value
their
long
have
that
curities
defunct
and
defaulted
from
to
you
tell them to do when
want them to do it.-
you
•
That's
He's the1 fellow who costs
■the way any good customer should
than his business will
ever
be ? worth and yet in most
cases the average salesman hangs
on
to him like grim death, for
what sensible reason it's hard to
act if
they know what's good for
them.
If they won't do what you
buys.
more
you
never seems
expected to pay a fee. No
how
litigation
the
turns
seems
Doctors;
we
their
var¬
profit after all charges totaled $3,900,000 in 1940 against $4,300,000
in
equivalent to 4.0%
1939,
4.6% of sales, respectively.
dividends
expected to pay
you receive. 'Wall
combined
prises
these
1939
with
1940
and
the end of both of these
years."
we
Securities
a
long
isn't
any¬
announced
on
<
and
Exchange
it
upon themselves to make the pub¬
lic pay a good price for the free
business got together and took
they
matter of
service that they now think
entitled
to
as
a
it seems to us that such a
step would benefit the securities
business far more than many of
course,
the so-called reforms that are al¬
being
ways
that do
to ; us and
proposed
no one
very
much, if any
add to the
good, and in addition,
of doing business.
when Wall Street
again regains its indepenand the people who are as¬
expenses
day
Some
;
once
ence,
sociated with the
securities busi¬
finally stand upon their two
feet and tell the rest of the coun¬
ness
try that they are not in business
for their health, for the love of
just to pay
taxes and take abuse from any
and all who wish to dish it out,
but to make a profit the same as
fellowmen,
their
or
other business in the coun¬
every
try, then and only then,
securities business be on
to
being
as
well
('
I As far
man
on a
as
will the
our
:
..
the individual sales¬
is concerned, in the
of this
opinion
column, we would tell all
time-wasters,
hangers-on
around the office,
report request¬
ers,
reorganization
and
all
the
sundry
fact
finders,
collection of
pdsts who continually ask for in¬
formation and who do so little
not worth
their
account and that their business is
not worth while and
that they
should take it somewhere else.
business
that they are
the time it takes to service
f
The
an
peculiar thing about such
attitude is that in many cases
these people
Investment
will come back with
Company Briefs
Keystone Custodian Funds, Inc.:
Under the
heading, "Highlights
of Keystone's 10
of
issue
the
Years," the July
"Keystone Investor"
of
the
development of the Keystone
or¬
itself
devotes
to
a
review
The Average may
close.
possibly
rise somewhat further, but its up-*,
has
movement
ward
sufficient for
what
a
some¬
than
position
stronger
been
now
take
to
us
date,
the total short interest in all oddAs of the June 30 settlement
lot
•
dealers'
accounts
was
52,059
combined
sales
two years:
reported
1940
Net
with $298,000,000
profit
after. all
charges totaled
$26,000,000 in 1940
compared
1939.
in
and
$20,000,000 in 1939, equivalent
and 6.6% of sales,•respec¬
tively.? Total dividends paid out
by these corporations were $16,-
to
7.8%
000,000 in 1940 and $14,000,000 in
1939.
ed
rl
.
...
...
Sept.. 30Oct.: 31—
—
Nov.
29—
Dec:
31—
479,243
474,033
517,713
we
—-
Feb. " 28——
-
market
The fol¬
lowing year (1937) witnessed the
single interruption to • the growth
rising
$5,547,000
to
value
537,613
June
30————
July
31——
Keystone's assets. This
was attributable to the
sharp decline in the market values
of securities during the latter part
of that year.
of
June
stood
Dec.
31
"For the 19 corporations manu¬
-
—
'
the
In
311—
than clay products and cement tne
Feb.
27————
combined sales amounted to $389,-
Mar.- 31————
—
000,000 in 1940 as compared with
Apr,
$335,000,000 in 1939. > Net profit
after all charges totaled $39,000,O00 in 1940 against $32,000,000 in
May
30—
29—
June
301——
sales,
tions
respectively. '
——
1—
——
460,577
489,223
paid out by these corpora¬
were
$25,000,000 in 1940
totaled
$433,000,000 at the end oi
1940 compared with $405,000,000
at the end of 1939, while surplus
increased from $137,000,000 at the
'
tribution of 11
the
capital
endar
Estabrook &
Co., 15 State Street, Boston, Mass.,
;
prepared by
members
of
the
New-York
and
Boston Stock Exchanges, r "After
the the-war,'' the study states, "the
end of 1940.
: \
--v- vV
industry should enter a period of
"For the 13 corporations manu¬
accelerated growth,;and the post¬
facturing clay products .combined war prospects of the, shares of
sales amounted to $51,000,000-.in
leading air transport .; companies
1940 as compared with $44,000,000 :should
compare
favorably with
in
1939.
Net
profit
after
ail those \ of industrial / stocks gen¬
charges totaled $3,700,000 in 1940 erally." Included in the story are
against $3,000,000 in 1939, equiva¬ brief descriptions of four of the
lent to 7.3% and 6.9% of sales,
major air lines, with a brief rec¬
respectively. Total dividends paid ord of income statistics and per
out by
these corporations were share data. Copies of the brochure
end of
1939 to $150,000,000 at
■
$2,800,000 in 1940 against $2,000,000 in
1939.
may
be
The combined assets Estabrook
had
upon
& Co.
of the Fund.
declaration," he
"distributions for the cal¬
1942 to date total 38
states,
year
cents. .This
three
made
is
total
up
of
quarterly 'Ordinary Distri¬
butions' of 11 cents each and two
•'Extra
-
Distributions'
profits on sales
Ordinary
net realized
securities, aggregating 5 cents."
During
the
month of June,
Corp. Deb.
5s, 1950, were approved for pur¬
chase by the Board of Directors.
'■
i
Gas
Union
'f-\
sR
£
V?♦
Timing,": is summed up as
follows -in the issue of July
9,
ment
1942:
.
request from
begin at
may
moment."
a
careful,
analysis of the practice of mak¬
ing bond investments by "ratings'*
concludes
this
that
are
method
The
con-,
set forth in following
the
.
recognizing the value of
bond ratings in investment, it isalso important to recognize their
limitations, which are especially
apparent from the price angle
(embracing both appreciation and
There
definite tendency for
bonds, especially of other-thanhighest grade, to have relatively
high ratings when their prices are
high and relatively low ratings
when their prices are low.
depreciation in principal).
appears
"Thus
a
a
high rating (in a bond
whose rating has been subject to.
change)
ther
well represent nei¬
may
expectation of higher prices'
protection
against 'decline;
opposite may be true of'
a
relatively low rating.
It fol¬
lows that the fact that ratings on:
medium and lesser-grade bonds—
or
while the
issues
particularly railroad
—
toward
their
undervalued,:
being
representing opportunity for
price appreciation."
(Continued
■
: ■
page
on
183)
but its
.
prices may, and probably will, be
seen in the next few days, but the
action
of
the
market registers
danger, and the downward move¬
ment could
begin at any time.'
,The
Dow-Jones
Industrial Stock
sharply dur¬
rising 1.61 points
Monday
(July 6) and 2.18
points on Wednesday (July 8).
The
Average
closed
tonight
Average
ing
the
moved
up
week,
on
(July
9)
points
since
at
108.75 —up
5.02
last
Thursday's
are
relatively low now at least points,
present existence warrants eauition by those on the long side of
the -market.
Somewhat higher
.
,
"In
This condition
only temporary,
be
may
of
deterioration
structure.
any
immediate'
% The bulletin contains
and
.
Thursday
we
wrote:
some signs of the be¬
"Last
market
.
.
downward
a
the
in
is
terms:
to
cents per share on
this
that
forecast
elusions
Fund, Inc.:
stock
"Including
velopment out of World War II
;
may be in the field of air .trans¬
study
$
report
July
of'
merely suggesting caution, hazard
has serious drawbacks.
513,546 National Securities & Research
Corp.:
■
' /
530,636 t
534,396
The intermediate, trend of stock
514,158 prices which this sponsor discusses
weekly in its bulletin, "Invest¬
Air Transportation :
Totaldivi¬
^ The greatest revolutionary de¬
1939, equivalent to 10 and 9.6% of
dends
-
did last Thursday; and, instead
offing, if not imminent. The in¬
dications tonight suggest that it
share¬
holders President Hugh W. Long
discusses the July 15, 1942, dis¬
•I" 1942—
Jan.
facturing building materials other
Jjl
-
Manhattan Bond
Brooklyn
lowing regarding report No. 19:
—
LOS ANGELES
and
#
-
_
,
349,154
28—1—
634 SO. SPRING ST.
JERSEY CITY
re¬
100-fold increase from the end of
444,745
i
453,244
Oct. : 31———
Nov.
;
15 EXCHANGE PUCE
were
new
000.-; This
of
.•
gains
1942, these assets
peak of $33,286,represents an almost
a
from
..Tne Commission listed the fol¬
iMCOtroiAtip
movement
30,
at
486,912
29-——
REQUEST
ON
LONG and COMPANY
30,
in the total mar¬
Keystone's assets. As
ket value of
—
—
W.
June
corded each year
Sept. 30————
1940."
through
substantial
1942,
Aug.
$'/7,000,000 at the end of
-
PROSPECTUS
HUGH
the
1938
From
1939 to
1940 com¬
STOCKS, INC.
of
pared with $372,000,000 at the end
of 1939, while surplus increased
from $66,000,000
at the end of
of
SERIES
experience
510,969
496,892
478,859
487,169
470,002,
at the end
NEW YORK
at
of Dec. 31, 1936.
as
trend
'498,427
487,151
30———
29——
20
of
1936 steady growth was recorded,
with the total assets of the Funds
—A 515,548
-
1
been
Total assets of
Funds as of
the end of 1932 amounted to $358,000; Each year thereafter through
459,129
31_—
MAJOR
INDUSTRY
Keystone Custodian
1941—
31—-
O00,0o0
has
field,
truly remarkable.
•
Apr.
May
totaled
investment
end
530,442
Mar.
group
This growth, which largely coin¬
,193
July 31—
Aug: 30——
Jan.
■
cides with the growth of the open-
;
.
$371,-
the
Funds.
1940—
The combined assets report¬
by
ganization and the growth of the
present
series of 10 Keystone
'There are
the way against $22,000,000 in 1939.. The portation, according to "The Fu¬
of the group ture of Air Transportation," a ginning of
paying basis in bad combined assets
good times.
as
"The
by the group were $334,000,000 in
people in order to get them to buy
a few shares of stock or a bond or
two.
If everyone in the securities
are
Russ Bldg., San Francisco
NYSE Short Interest
has made public the
Commission
not do for
would
: :
Investment Trusts
\
Lower On June 30
,
thing that
Broadway, New York
sur¬
plus unchanged at $28,000,000 at
-
such
120
enter¬
^
buyers market for
request
upon
$75,000,000 at the end
were
both
of
of
assets
Prospectuses
STOCK
NATIONAL SECURITIES & RESEARCH CORPORATION
paid out by these cor-;
The New York Stock Exchange
Equipment And Materials
The
to be the only place
time it seems as if there
c
porations were $2,800,000 in 1940
against $1,800,000 in 1939.
The
shares,*;; v compared fi-with • • 65,434
all sorts of expensive^ statistical 18th and 19th of a new series of shares, on May 29.
Thb Exchange's announcement
service and fact finding facilities, industry reports of the Survey of
that cost in some cases, a small American Listed Corporations. Re¬
"Of ' the.M,242 individual vstock
fortune to keep up, and still pay port No. 18 covers corporations
Issues listed on the Exchange- on
engaged primarily in the manu¬
so little for it that in many cases
June 30, there were 24 issues in
those who use it never even ap¬ facture of building equipment and
which a short interest of more
preciate what is being done for report No. 19 covers three indus—
than 5,000 shares existed, or in
trial groups—the manufacture of
them.
which a change in the short posi¬
I
One of the reforms that every ouilding materials other than clay
tion of more than 2,000 shares oc¬
one connected with the sale of se¬
products and cement, the manu¬
curred during the month.
curities
to
the
general
public facture of clay produces and the
■i "The number of issues in which
could well put into effect, so it manufacture of paints and var¬
a short interest was reported as of
nishes. All of the corporations had
seems to this column, would be the
June 30, exclusive of odd-lot deal¬
elimination of many free services securities
registered
under
the
ers', short position,, was 402, com¬
that we have encouraged the pub¬ securities Exchange Act of 1934
pared with 401 on "May 29,'.'
{
lic to take for granted.
This is at Dec. 31, 1940.
In the following tabulation is
With respect to report No. 18,
one
reform we could undertake
shown the short interest existing
without the dubious blessings of covering 2U companies manufac¬
at the close of the last business
overseers,
bureaucrats and gov¬ turing ; building equipment, the
day for each month for the last
ernmental officials.
We have had SEC said:
J
- 1 /'• ..1
. - '
a
COMMODITY CORPORATION - CAPltAL
and
Total
begin to take such
SEC Reports On Building
earth where the public can use
on
FIRST MUTUAL TRUST FUND
$99,000,000 in 1940 as compared
$94,000,000
in
1939.
Net
with
No compe¬
•
Income Series
Low-priced Common Stock Series
amounted
sales
should do less
man
Low-priced Bond Series
Preferred Stock Series
«
tion and you are
Street
new
to
and
paints
combined
Exchange from its members and
An ounce of: independence at member firms, was 514,158 shares,
the right time is worth a ton of compared with 534,396 shares on
free service.. Try it!
May- "29,
both totals excluding
short positions carried in -the oddlot accounts of all odd-lot dealers.
do.
Consult an ac¬
countant, a public relations coun¬
sel, an engineering firm or any
service organization you can men¬
'for the advice
their
sional nature.
visit—and
still pay—or rather,
heirs
your
000,000 at the end of both years.
"For
the
nine
corporations
July 7 that the
ness, that is the time when we will .short interest existing as of the
be accorded the respect that is close of business on the June 30
given to .other professions and settlement date, as compiled from
other businesses of a semi-profes¬ information obtained by the Stock
doctor—you pay by the
if you die you
a
attitude in the securities busi¬
an
If you go to a
out—you still pay.
they need
securities
—and when
to materialize.?
matter
with
argue
tent
to a lawyer for advice,
you are
then
Doctors don't allow it.
forlorn
hope that someday this
timewaster may send us some business
If you go
NATIONAL SECURITIES SERIES
Bond Series
investment advisor. Patients don't
discover, unless it's in the
that
them
tell
$101,000,000 at the end of 1939,
while surplus amounted to $20,-
nishes
meet the particularly aggravating species of se¬
curities buyer who asks for a hundred dollars worth of service every
time he leaves you a ten dollar commission?
Every salesman, no
doubt, has made this fellow's acquaintance.
He is present in every
brokerage firm's boardroom.
He's the fellow who comes into your
office and asks you to take up your time running down everything
Did
totaled $103,000,000
with
group
at the end of 1940 compared
manufacturing
Free Lunch Counter
175
Prospectus
may
be obtained
from authorized
The
dealers,
or
PARKER CORPORATION
ONE
COURT ST.,
BOSTON
THE COMMERCIAL & FINANCIAL CHRONICLE
FLORIDA
low
10,000
two
'*
Municipal News & Notes
article
FLORIDA
in last week's ! North Carolina and Colorado, 17 %
delete all but a few
of these condensed reports. Since
necessary to
that time,
other rosy-hued finan¬
cial statements have reached this
desk, showing that expanding na¬
tional income resulting from the
effort, have swelled State tax
war
Much as we should like
to, most of these reports cannot
be given here because lack of
space prohibits, but we have cho¬
sen
a
representative few which
appear subsequently.
•
>
;
At this point, it should be again
emphasized that the current pic¬
ture may be fine but the future
holds possibilities of sharply de¬
clining revenues for the States be¬
cause
of a drying
up
of some
sources of revenue or unexpected
emergency
outlays.
It behooves
all governing bodies to proceed
warily with the surplus funds now
York last Thursday as
cial
,
ment
States
beginning
show the restrictive effects of
tioning,
principal
group
requests.
war
municipal
to be paid
the cost of services rendered by
municipal governments to
in
the
used for
owned
local
war
prop¬
communities
purposes,
operated by
or
whether
or
for the
Federal Government or the gov¬
ernment of any allied nation."
That
2.
ment
the
desist
exemption
plants in
Federal
from
on
any
Federal
by
two
Govern¬
claiming tax
production
war
city, financed by
Government
private
chief
but
corpora¬
requests
were
by
resolutions committee after
the meeting ended.
Another step
taken, however, was to appoint a
committee of Mayors to fight a
Treasury Department proposal to
make
municipal securities tax¬
able.
They are now tax-exempt,
pected to show a substantial re¬
duction this year 'from the record
of
$1,825,000,000
collected
last with the result that cities can
year.
State gasoline taxes alone borrow money at lower interest
approached
the $1,000,000,000- rates.
At Mayor La Guardia's sugges¬
mark in 1941.1 Cities, large and
srmall, began td realize the possi¬ tion, the trustees authorized the
States
Conference
of
bilities of the parking meter sev¬ United
eral years ago, but revenue from Mayors to appropriate $100,000 for
this source from now on is ex¬ a study of municipal problems by
pected
show
to
rapid decline.
Gasoline and tire rationing,
all
told, will strike a severe blow at
one of the most prolific
sources
of
revenue
a
various
our
govern¬
ments have exploited, tax experts
i V.'
say.
In
tax
each
bill
V
:
since
year
of
the
1932, the
petroleum
in¬
dustry, including Federal, State
and local taxes of all kinds, has
represented at least 10% of all
collected
revenues
from
taxes
in the United States, according
to an anaylsis by the American
Petroleum
the
Institute.
petroleum
tax
In
1941,
bill
was
equivalent to 10.5% of all taxes
collected during the year.
Sales Tax Revenue
Price ceilings, stricter controls
over
instalment purchasing and
lower production of civilian com¬
modities
are
ieveling-off
combining to effect
in
State
sales
a
taxes
which recently have been at alltime high levels. Except for taxes
on food and
services, declines may
be anticipated in the near future
although total collections
expected
to
fall
below
not
are
those
of
1941, the Federation of Tax Ad¬
ministrators
reports on the basis
of analysis of collections in eight
States.
'
There should be no
genera
slump in tax receipts in the next
several months, the study said,
riothing that the existence of rec¬
,
We
will
27% of local funds for this
pose were
Most
relief
and
from
than
localities
and local govern¬
still
past seven years, is
apportioned on bases vary
ing widely from State to State, in¬
formation from the Federation of
Tax Administrators showed Mon¬
day.
just
ended
general
from
monest kind of
taxes rank
revenue
and
liquor
general
from
for
fund
18
the
fiscal
indicated
the
State
and
merchandise
the
generally
inventories
and
heavy reliance on
food sales probably will offset in
part restrictions on purchasing
and the imposition of price con¬
trols.
States taxing services are
expected to continue to gain rev¬
enue
from this
source.
July
1,
showed
1941,
taxable
to
May
sales
state
and
provided
Totals covering the period from
up
1,
1942,
12% in
nanced
local
most
of
increase
an
relief fi¬
in
1941,
in
contrast
with depression years, when al¬
most
60%
of
state
funds
ex¬
ceed
•
financing of streets and
highways in municipalities will
depend on the property tax in
Collections of
this
the
source
said, almost dou¬
those made during the
pre¬
Wis. Cities and Towns
-
By
following
strict pay-asyou-go plan in which "nest eggs"
Secretary of The Civic Fed¬
eration,
Chicago, reports in a
study of the street and highway
financing problems of that city.
public improvement play an
important part, Wisconsin cities
century, Mr. Suther¬
land noted that in "the very early
days each property owner was
responsible for maintenance of
there
tury
shift
the
street
benefits
now
the
of
so-called
With
municipal wheel
construction
of
State
on
mod¬
ern
use
special
Airports Operated
Jointiy to Increase
.-U,
;
;
•"
Forty-two municipal airports in
the United States are operated as
point enterprises by 91 cities and
counties, and 55 more probably
will
"be
future,
tional
established
report
a
in
the
to
near
Interna¬
City Managers' Association
showed. ."1'• i
r
the
With
';
Federal
'
aeronautics
au¬
thorities declaring the number of
airports must be doubled and the
number
of
hangars
tripled
to
when
years
taxpaying ability of citizens
,
a
association
the
from
report to the
League of
Wisconsin
Municipalities.
In¬
cluded in the totaLare figures for
Milwaukee, which has been suc¬
cessful in reducing a $50,000,000
debt
to
$13,000,000 through an
amortization plan set up in 1923.
At least eighteen cities in the
i
State
are
many
other cities the outstand¬
ing
totally debt-free.
debt is
small
retired within
defense
and
Ky. General Fund Hits
civilian
re¬
and
been established by joint intercity
action,
more
and
than
Twenty-two
joint ports
only
two
of
are
•
four
involve
a
and
will
be
few years, ac¬
Milwaukee's
.
a
of
Ken-'
year
on
general fund bal-;
$8,338,007, compared
with'
a
tax
will
580,948 for-the fiscal
for * the
period...'■«'■
large enough to carry debt, yearly
principal and interest charges.
California "In
the first
California
July
time
in
opened a
1 with its
ernment books
of
the
former
on
the
a
decade
new
State
fiscal
gov¬
the sunny side
All oper-;
Tenn. Ends Year In
it
.
i ••'■)■
■
Financial Clover
The
its
State
of
Tennessee
books for the
closed
1942 fiscal year
with the
largest tax collections in
history and a prediction that a
tallying would show a gen¬
final
eral
fund
surplus exceedng that
$933,000 for the year 1941.;
of the
The collections
ment
of
rang up
also
by the Depart-;;
Finance
and
$52,687,331,
last
over
Taxation
gain of $5,-
a
fiscal
year.
It
brought forth the prediction:
this would probably be the
last
"for
year
the
motor
the
State
from
duration"
would
see
in;
lush
gasoline taxes and
vehicle
registrations,
leaders in bringing in the coin
which the States operates.
San Antonio Public
the
on
Utility
The city of San Antonio and the
San Antonio Public Service Com¬
pany were restrained
a
Tuesday by
temporary court order against
further steps toward the condem-,
or purchase
by the city of
nation
ledger.
Exactly how much of
.
the
company's
electrical
a surplus
probably will not be
known for at .least, ninety days,
but state officials estimate it .may
the
amount, to. as high as. $25,000,000
Company to the city of San An-,
there
is
Just
cash
a year
ago the state had
deficiency of $61,732,985.
a
Wisconsin Shows Record
Fund Balance
i "
Wisconsin opened the new fiscal
year
Oklahoma Announces
.
ties.
ended
'
Arrangements
San
tonio
long parade of de¬
July
1—thanks to a
for
Antonio
were
the
Public
entered
proper-'
/V
...
sale
.
of
Service.
into
Mondaycity, and;
representatives
of
.the
utility,
signed a contract under the terms;
of which the utility would be
transferred from private to
public,
ownership at an1 over-all price of
when
officials
of
the
approximately $34,600,000.
.
Under
American
and
city
San
the
deal
Light
and
V
between
Traction
Antonio
would
officials, the
purchase
initially
the entire issue of San Antonio
Public Service common
stock,
totaling 83,000 shares, for $10,000,000.
Thereafter, the
city
would
retire
ferred
stock
first
Oklahoma's
ficits
\
ating expenses of the State are'
paid out of the general fund, with
the exception of the
highway de¬
partment. Total cash in banks, in¬
cluding the general fund, high-;
way fund and various revolving
funds was $21,859,288.
Purchase Halted
the Black"
For
establ¬
having been $30,143,229 in',
new, peak,
the 1936-37 fiscal
year.
service
be
receipts
a
incomes
to
preceding-
record
which
expected
fund
$33,-from-
ished
but citizens will find reduced debt
charges in their tax bills
when the amor¬
gasoline
to
year,
$26,721,011
General
receipts,
..
of
increased
revenues,
not be
in another year,
tization fund is
fund
exclusive
are
that
wiped out entirely for ap¬
proximately
another ten years,
General
v
which
590,618
indebtedness
municipalities. Surplus
the 42- existing
in communities be-
of
ance
;
('
June 30 with
In
cording to the report.
year
.■
fall due in
able, according to
assessments and
bond issues for street purposes.
may
date for which figures are avails
'
the
248,997.82 beyond the most ex¬
travagant estimates presented to
the last Legislature.
while
munici¬
The total outstanding debt of
municipalities in the State drop¬
ped from the high point of $92,820,717 at the end of 1931 to $56,205,111 at the end of 1940, last
the users of mu¬
nicipal thoroughfares.
This was
shown in Illinois by the passage
the
that
on
low, bonds issued
t
from
tax law.
figuring
are:
has lessened.-
the property to
of
funds,
pal bonds
cen¬
recognition
a
was
in
the
record-breaking
collections of last year and
$14,-
sioner.
a
present interest rates
and special assessment.
$57,297,-,
$10,684,315.11-
of
of debt at
ment
the road in front of his property."
This concept led to the special tax
In the first decade of
figure
a
and towns are
freeing themselves
rapid rate, the Ameri¬
Municipal Association reports.
Instead of financing such con¬
struction as bridges and
sewage
disposal plants by bonds, the mu¬
nicipalities accumulate improve¬
the
to
indi¬
$1,341,533 surplus a year earlier,,
according to a report by J. Dan
Talbott, State Finance Commis¬
can
Outlining the change in con¬
cepts of street financing since the
of
966.82,
■
for
tive
turn
a
declines
4 The Commonwealth
tucky closed its fiscal
Cut Bond Debts
lesser
cash
during the new fiscal year.
General fund collections rose
to,
unheard-of total of
corporations.
from
cold
cated
from
degree than at pres¬
Douglas Sutherland, Execu¬
ent,
revenue
New' Peak
Future
even
$17,000,000 in
greater than the
during the
those collected
record-
collection of
$99,054,
805.33 in all revenues
and a gen¬
eral funds
surplus that will
year,
were
its fiscal
shattering
local
governments
the
North Carolina closed
year on June 30 with the
year
.
ord
Large Surplus
in¬
principal
vious year, producing an increase
of more than
$5,000,000.
:
i
•
.
..
past
bled
Street and Highway
Financing Discussed
meet
total,
voted by the
people on
11, 1941, the surplus can¬
Legislature
appropriates it.
,
Commissioner
next.
and
cushion
revenue
spon¬
March
the
funds
Of the earmarked funds,
amendment
by Governor Leon C. Phil¬
creases,
which this State has gone all-out
for
war
production
earmarked
the general sales tax is the com¬
$5,476,693 was'
the opening of a new
not be spent until
the
than
more
amendment-
of
N. Caro. Ends Year
With
with a geheral fund balance
quirements for facilities, the move of $31,493,665, highest in history,
governments spent $337,000,000 for for
A.
H." Pettigrew.
intermunicipal action on air¬ according to
relief in the fiscal year
1941, more ports which began in the late financial secretary to Gov. Julius
than
56%
The total July 1, 1941,
coming
from
State 1920's may receive still greater P. Heil.
funds and less than 44% from
was
$17,493,486.
Mr. Pettigrew
impetus, the report said.
local
attributed the
boost to greater
revenues,
Social
Security
Most of the intermunicipal air¬
Board figures show.
revenue and less spending by the
'
port agreements are between one
state.
Current revenues of both the
city and one county. Seven have
In
lips
six
single tax receipt in¬
reflecting the manner in
fi¬
lation of plans to harmonize Fed¬
ments for the
other
Tennessee.
Largest
borrowed.
States
to
bility of State
sources
pur¬
Memphis and Salt Lake City. Pur
pose of the meetings is the formu¬
General relief financing, which
been entirely the responsi¬
in
sioner.
thoroughfares, particularly
speed highways, and reluctance
has
The
sored
$6,000,000 over re¬
ceipts of the previous period, ac¬
cording to the State Tax Commis¬
of properties abutting
Financing Varies
airports in
joint intercity
a
city-county
are
derived
tax
of
CHICAGO ILLINOIS
ed these regional meetings, which
held in New York, Chicago,
State, Local Share of Relief
in Texas.
Connecticut
'•'» V;.
government officials have attend
eral, State and local ideas for re¬
lieving fiscal problems induced by
war conditions.
V."'S
are
surplus
pocketed at
city-county
one
balancing
a
fiscal year. *'
Under
the
Income Rises
RECrummer&Company
1ST NAT BANK IIM
joint air¬
Connecticut General
glad
regarding
inquiry
any
obligation..
no
be
highways, Mr. Sutherland pointed
out, "motor traffic increased, and
partly to encourage highway con¬
a board of experts.
struction
by the counties and
"There is not a city that is not
partly in recognition of the in¬
on
thin financial ice," Mayor La
creased highway demands thrown
Guardia said.
upon them by the growing motor
traffic, some State aid was given
ederal, State and Local
them, at first from proceeds of
Officials Confer
the State bond issues (financed by
Perhaps the Mayors mentioned motor vehicle license fees) and
above were unaware that a series later
by partial reimbursements
of conferences has been going on direct
from the motor fuel tax and
recently, dealing with emergency motor vehicle license funds.
•
fiscal problems, under
the au¬
Other factors in the reduc¬
spices of the Council of State
tion of the burden of munic¬
Governments.
Representatives of
ipal
thoroughfares
borne
by
the Federal Budget Bureau, the
property from the original 100%
Treasury, Congress, State budget
to its still substantial propor¬
and
tax
officials, members of
tions have been the deprecia¬
State defense councils, and local
tion, rather than appreciation,
were
Reductions Seen
bonds.
budget
and
comprehensive
a
familiarity with these
governments
amounts fairly representative of
erty
us
only
of Sept. 1, 1941,
as
proposed ports
come
nance
to
of the Federal,
States and local governments from
the petroleum industry are ex¬
at
rather
contained in resolutions prepared
revenues
them
They
the period of the
emergency, cause
gives
answer
sources.
ment, during
a
to
made
in
ra¬
issues
municipal
discussed
of cities
and ap¬
Govern¬
1. "That the Federal Govern¬
to
da
background of
handling Flori¬
and
100,000.
additional
Idaho, and 33
airports and
Confer¬
were:
The
With motor fuel consumption
United
The
aid.
for
two
Our long experience In
the finan¬
S.
tions.
Seen Declining
the
U.
Mayors.
operated
Oil Tax Revenues
the
of
They
the financial problems
throughout the country
pealed to the Federal
the
hand.
on
of
ence
receipts.
.
board
54
are
project
that financial < in Michigan and Missouri, 22% in
reports of many States throughout Kansas and Oklahoma, and 25%
the country served notice that the in Arizona and Illinois.
close of their fiscal year periods
Mayors Discuss Municipal
found them in very good stand¬
Finance Problems
ing.
We had prepared excerpts
Fourteen mayors and the rep¬
from various reports to bear out
resentatives
of
two
our findings and intended to pre¬
others met
sent these news items as follow- with Mayor La Guardia in New
to the main theme. Owing to
exigencies of make-up, it was
15
MUNICIPAL BONDS
column pointed out
ups
the
population,
in areas over
the
ports proposed
7*4,
The lead
are
Of
Thursday, July 16, 1942
the
utility's pre¬
debentures
and
mortgage bonds.
The en¬
tire transaction,
according to the
deal, would be
accomplished
;
•*
THE COMMERCIAL & FINANCIAL CHRONICLE
156 '' Number' 4090 '
Volume
of
sale
the
through
bonds by the
that
'out
revenue
v
Province
the
half
than
more
city,
of
provided
individual
all
-
:
Cleveland Electric Co.-
;
'and corporation taxes collected by
!the government of the Dominion
,
Acquisition Opposed
of Canada in the fiscal year
Opposition has developed to the
recent proposal that the Cleveland
Electric Illuminating Company, an
important
unit
in
the
North
American
Company system, be
transferred from private to pub¬
lic ownership. Cleveland Electric
March
has
been
the
North
der
the
ordered
the
of
sions
American
"death
system
sentence"
un¬
A group
and
bid
Complete Banking and Trust Service
for
The
is strongly opposed
public ownership of the utility.
In a report just filed
with the
issue
an
successful
bid
1959 to
The
1962,
change from private
to public operation of the utility.
In voicing its opposition to the
cost, and (2)
city would have great
difficulty in floating a $100,000,000
in
clusion
with
interest
the
2.6347%.
the League asserted that
city, which already operates a
an
•
bid
,
r'
Makes Last Payment
basis
cost
This final
distribution,-payable
only upon surrender of the deben¬
tures for
cancellation, to the Chase
Bank, Trustee, will bring
payments on principal 'to
$8,219,479.54, or 30.75 cents on the
dollar. ; Holders
also
received
National
total
interest payments, aggregat¬
ing 9.43% of principal, or approxi¬
mately $2,533,162, to lift the over¬
all return to
40.18%.
Principal
payments were 10.5% in 1939 and
seven
of
have
been
refunded.
These include $4,115,000 of
public
sewer
the
of
Ontario
and the United
Canada
has
in
States of
bonds and treasury bills totaling
-
"All
our
I
am
'
re-financing has been
of business, and
were
delighted.
Twelve local public housing au¬
thorities sold Tuesday to various
banks and investment firms
tal
the
high standing
Ontario in the eyes
of
of investors."
Ontario Booklet
Prepared
Wood,
Gundy. ,&
Co.,
Inc.,
14
Wall St., New York, has prepared
a booklet on the wealth
and re¬
sources
tario,
of
the
Province
a
to¬
of
Brothers & Hutzler took
$6,-
727,000; the Girard Trust Com¬
of Philadelphia, $3,000,000;
the
Capital
National Bank
of
Sacramento,
$1,755,000;
Harvey
Fisk & Sons, Inc., $1,100,000; R. W.
Pressprich & Co., $800,000, and
pany
The New York. City Housing
:
of On¬
Authority
i posals
up
will
consider
_
pro-
to July 22 for the sale,;
\
as
I
than $1,806,000 principal amount
5
of bonds
an
Series A bonds of not
.
A
$654,905,379.71
.
35,164,434.61
.
.
,
' 14,548,576.60
.
.
♦
28,903,999.52
.
,
,
,
,
,
*
*.
,
»
,
$733,522,390.44
8,625,000.00
:
10,000,000.00
11,375,000.00
»
.
for
,
„
,
Reserves
Our
.
5,448,975.06
.
35,573,975.06
payable
•
.
,
500,000.00
2,445,993.44
.
■
.
125,000.00
,
.
Stock
16
*
Liability Account of Acceptances
and Letters of Credit
y
,
.
Common
Dividend No.
.
...
TOTAL LIABILITIES
v
,
2,141,114.53
.
.
&
.
J
$774,183,473.47
United States Govcrntnent securitiee carried
pledged
are
to secure
public and
trust
at $68,399,337.68 in the
foregoing statement
deposits and for other purposes required by law.
■
■
Agenc^
Housing
of
rate
interest
will
and
the
on
"
.
M
■ n
.fr. ■ ;.
I,
Series
We
list
herewith
($500,000
issues
come
and
or
over
in the
up
of
to
successful
The
bidder
runner-up
previous issue
'
sold
for
the
are
also
last
ap¬
initial
issue
of
$2,050,000 of ;
j bonds) of the Authority to aid
«
in financing the cost of its lowrent
housing
;
project known as
Classon. Point Gardens, desig-
:
nated
I
as
Each
Project No, N. Y. 5-7.
proposal
must
serial
maturities for
bonds
on
1
- ;
.
v
,
_
.
July 17
the
March
county awarded bonds to a
syndicate headed by A. C. Allyn & Co. of
Chicago. Second highest bid was submitted
by Prescott, Jones & Co., Inc., of Cleve¬
prescribe
$2,050,000 of
be¬
ginning on Feb. 1. 1943, and end¬
ing not later than Feb. 1, 2000, and
shall
designate not more than
$1,806,000 of these bonds, consist¬
ing of any number of consecutive
Feb. 1 of each year,
i
-
Kvi- 8':
amount,
of
July 20
;
A'
,
June
reader
1,
went
Reusch
Fox,
Ohio
&
of
Co.
second
i
^
,
best
interest.
to
Prior
syndicate
of
Co.
award,
headed by
Cincinnati.
Columbus,
and
17 to 20 years.
July
21
.
in
Similar
and
certificates
awarded
headed
& Trust Co.
entered
Carolina
(State
by
last
the
of
March
indebted¬
31
Chemical
to
a
Bank
of New York.
Second highest
by Halsey, Stuart & Co., Inc.,
associates.
and
the
,
of 39%
the
Aggregate of such
placed
at
same
.
quality
of '
Currently the
business
such
the
it
generally
seller
as
involves
to
is
use
an
the aim
oppor¬
he sees it, to let go of
a
debenture and replace it with
a
mortgage issue, or perhaps to
up
In other
purchases
last year.
held.
a
mortgage"
in
the
words, the element of
quality, rather than price, is the
guiding factor in most such under-
$2,425,000,000
against $2,100,000,000
trades, nat¬
parlance of the trade.
period in 1940.
was
Here
"step
securities
over
of such
improve the
of
tunity,
life insurance companies re¬
overall increase of 15%
gain
the
classifications.
A
mortgages, which incidentally
a
of
the secondary and less railroad
an
of
to
bonds
bulk
of
purchases
securities,
part
urally is to round out portfolios )
demand, indicating an
closing of subscription
gross
and
is
highway
were
syndicate
bid
South
sizeable
aim
The
v
For the first half of the current
port
of
holders
a
daily business going through.
Company Investments.
year,
to $81,-
portfolio chiefs and other in¬
provides
books.
associates,
se¬
to $122,000,000.
stitutional
reported
the
bonds,
priced for reoffering in line with
existing markets, were meeting
Life
utility
Swapping operations by insur¬
Dealers
early
of
off 43% to $311,000,-
"Swapping" Is Active.
Completing a nine-year job of
refinancing, involving $229,000,000, the last bonds sold were bid
in by bankers in three groupings,
$7,746,000 as 11 to 14 year 3%;
$4,408,000 as 15 to 16 year 2V2s
and $4,989,000 as 2lA%, maturing
The
bidder.
$4,000,000
of)
ness
New
city of 2.59958%.
in
were
off 23%
program
a
in 1941 or 1940.
as
000,000 and State and municipals
with brisk
.
slightlyunder
the
required
this offering is included because
general
on
refunding
total
a
000; railroads down 41%
Finis.
with the sale to
great
purchases
curities
York banking group of $17,143,000
bonds at an interest cost to the
•
\
$480,000 Akron, Ohio
Although
enormous
this week
as
New
ance
the
pended.
times
The City of Detroit rounded out
its
with
contrasted
$1,231,000,000 added to hold¬
ings of federal securities, a total
more
than
two
and
one-half
Reporter's
Report
Detroit Writes
term
are
future.
near
the
short
which
of
(Continued front First Page)
more
offering?
—
excluded),
names
the
municipal
r
(constituting part - of
Our
A
Major Sales Scheduled
important
This
up in the bidding was Harriman Ripley &
Co., Inc. of New York, and associates.
bonds.
land and associates.
more
Canada, in which it points maturities, commencing with the
A ';.;"
...
August 1,1942
$50,459,000 of short-term
obligations.
The Chemical Bank
saving in the interest rate is in¬
of
; A, -
;
>
*
bear interest at the rate of 2y2%;
Bidders are asked to specify the
Bonds Offered
naturally
The fact that we
able to obtain a substantial
dicative
■ ■>
.
Reserve
Public
|
completed up to March 31, 1943,
at .a :big saving, to the Province in
the service charge on the debt,"
said the Premier. -"It is' a good
stroke
;
•
,
In
\
2,141,114.53
$774,183,473.47
.
Preferred Stock
$2,976,000 Cuyahoga Co., Ohio
A
,
Common Stock
cently.
% v:
.
.
"
Reserve for retirement of Pre¬
ferred Stock
.
;
'
$129,500,000, at an interest rate
substantially ; lower
than
that
which
has ' hitherto
prevailed, the First and Merchants National
Premier Hepburn announced re¬ Bank of Richmond, $416,000. ;
;•:, '.y.
,
to be redeemed on
Member Federal Deposit Insurance Corporation
1
$1,198,500
of
public
school refunding Series A 4s, to be
BUY U. $. WAR BONDS REGULARLY OUT OF INCOME
redeemed on Nov. 1; $3,997,000 of
public sewer refunding Series A
4s, on Nov. 15; $7,512,000 of pub¬
lic sewer refunding Series A 4V2s,
on
Dec. 15; $2,000 public school first maturity as Series A
bonds,
July 29
But
it
develops upon break¬
refunding Series A 4V2s, on Jan. 1, provided that no bonds maturing
down of the figures that actual
$1,200,000 Washington Suburban
1943;
$25,000 library refunding after Feb. 1,1979, may be included
investments in mortgages in the
San. Dist., Md.
Series A 3!&s, on Jan. 1, 1943, and as Series A. All bonds not sold as
Last December the
said district awarded
period were only $404,000,000 or
$294,000 public school refunding Series A will be Series B bonds a larger issue to a syndicate headed by
2% less than in 1941.
Series A 3V2s, on Jan. 2, 1943.
and will be sold to the Federal Phelps, Fenn & Co. of New York. Runner-
mon
re-financing
.
15;
Company and associates
received the award of $36,661,000
of the total amount offered; Salo¬
Refinancing
Province
*
.....
Undivided Profits
refunding Series A
and Trust
The
.
bonds,
Sept.
that
Ontario Effects Huge
1,104,082.76
13,970.63
1,338,370.31
<; / 483,592.90
,
Surplus
Last
bonds.
4%
105,141,370.54
■
Capital Account:
time ago under which
general obligation bonds
the
'
completed
,
Treasurer, State of Michigan
Other Public Deposits
«
:;V'>
Trust
Housing Notes Sold—
approxi¬
outstanding
debentures
are
owned
by New
York banks, exhibitors and con¬
cessionaires at the Fair with only
a
small amount held by indivi¬
Bond
,
I'
in 1941.
duals.
.
Commercial, Bank and Savings
outstanding
outstanding 4% de¬
$940,198; representing
3V2% of the $26,862,800 original
principal amount issued.
of
.
,
bentures of
estimated
,.
U. S. Government
some
will
holders of the
80%
88,346,521.60
16,756,385.14
38,463.80
LIABILITIES
Deposits!
position
Northern
.
TOTAL RESOURCES
$155,000,000 New York/ World's
2.72%, as part of this refunding
Fair again hit the news column
program.
:•( .V
recently.
In
its
final
gesture
Following the sale of this issue,
before dissolution proceedings are
Detroit city
officials announced
begun, the Fair Corporation an¬ Tuesday the call for redemption
nounced June: 29 a payment to
of
$17,143,000
of -S
is
.
.
.
Liability Account of
Acceptances and Letters of Credit
Forgotten by practically every¬ March the
city sold $16,758,000 of
body .but the • bondholders, the bonds at a net interest cost of
It
*
.
Buildings and Leasehold Im-
Prepaid Expense
sale of this $17,143,000 is¬
completes the refunding pro¬
gram which was started by De¬
troit
mately
...
Customers
The
all of its
-
.
sue
N. Y. World's Fair
16.75%
....
provements
Other Real Estate
2.6385% interest cost basis.
a
Mortgages
Accrued Income Receivable—Net
Company, Chicago, and associates
not
900,000.00
,,
runner-up
The
344,062,282.51
65,159,367.68
,'
Branch
the Bankers Trust
Company
ally and efficiently."
.
Overdrafts
were
cate headed by
con¬
yet proved its ability to operate a
light and power plant economic¬
,
.
Real Estate
ing from 9914
to maturity in each case.
!
The city received three group
bids for the issue, with a syndi¬
the
"has
,
,
prices rang¬
to 98 V2, according
ficient service at low
municipal; plant,
,
and the 2V2s at dollar
proposal, the League declared (1)
that the company is rendering ef¬
small
,
,",
.....
Loans and Discounts
immediately
re-offered by the syndicate, with
the 3s
priced to yield 0.60 to
2.60%; the 2V4s to yield-2.50%,
a
fully guaranteed
Stock in Federal Reserve Bank,
Loans:
2V2s.-
as
bonds
or
Other Securities
$7,746,000, due on July 15,
1956, as 3s; $4,408,000, due
on July
15, 1957 and 1958, as 21/4S,
and
$4,989,000, due on July 15,
the part of taxpayers and
In
direct
100.025
was
$253,839,321.61
.
United States Government Obligations,
1943 to
Council and the Mayor of
Cleveland, „:the I League declared
that there is "no widespread de¬
time.
Banks
of
,
,
Hand and Due from Other
on
for
City
this
of Condition June 30, 1942
RESOURCES
Cash
2.59958%.
,
to
at
Statement
of 74 investment firms
$17,143,000 of
city of Detroit, Mich., refunding
bonds, the tender showing a net
interest
cost
to
the
city
of
of Cleveland
issue
OF DETROIT
of
population.
York, .Halsey, Stuart & Co.,
and Lazard Freres & Co.
submitted Tuesday the winning
Electric property. Latest develop¬
ments in the situation, however,
bond
Ontario,
one-third
*
banking institutions headed
the First National Bank of
by
City of Cleveland bonds,
the proceeds of which would be
used
to ,; acquire
the Cleveland
that
NATIONAL BANK
New
on
for
of
Awarded
bid
on
ended
cent of the
Detroit Bonds
Inc.,
voters
comprises
Canada's total
Act, and several weeks ago it was
reported in Wall Street that bank¬
ing group was being formed to
sire"
per
residents
to
which
provi¬
indicate that the Citizens League
Forty
income of the Dominion
accrues
Company
Holding
31.
national
loose from
cut
177
.
takings.
THE COMMERCIAL & FINANCIAL CHRONICLE
178
Serial
"(8)
Urges Buying War Bonds for Post-War Reserves
G types
Urging the purchase of War Bonds of the Series F and
excellent means for the investment of reserve funds
for in¬
ah
as
carried
maturities
Chandler Offers Stock
OPA Explains Stand I
Of Fluorescent Corp.
On Ceiling Prices
lower cost of flotation than single
maturities
the underwrit¬
bonds offered to the public in
ten
Thursday, July 16, 1942
among
all four years.
Leigh Chandler & Co. are of¬
The Office of Price Administra¬
H. Heimann points out
"<9) Issues marketed through
National Association of competitive bidding, which car¬ fering 38,000 shares of Fluorescent tion issued on July 11 a statement
Pigments
Corporation
Capital designed to
Men, released on July 15, that "these bonds likewise provide ried lower than average costs of
clarify conflicts be¬
Stock at two dollars per share.
tween the General Maximum.
the very best investments that corporations can make if they
flotation, were higher in volume
dustry's post-war reconversion costs, Henry
the "Monthly Business Review" of the
in
Credit
of
one
build
must
of
nature.
extended
an
'
"Corporate reserves in the form
Bonds serve
War
of
three-fold
a
First, they help provide
the government with funds to pay
for the materials necessary to win
this war.
Second, they contribute
purpose.
toward the anti-inflationary pro¬
and thus add to the possi¬
gram
The
ma-^
to meet
reserves
issues
turing
with
compared
which
4.2%,
an
annual low for the three preced¬
ing years of 5.2% in 1939. Com¬
mon stock in 1941, in the volume
of
carried an average
of 2.4%, and the substantial
70 -issues,
cost
yields
only
not
that
security
a
satisfactory, rate of in¬
cannot depreciate in
a
terest
and
price,
but
the backing
has
also
America."
the
Series E
of the United States of
to
In' contrast
companied by a great increase in
the proportion of issues sold with¬
banking
out the aid of investment
ing.
v'Y-
"(2) A reduction in, the number
of issues, but an increase in the
dollar volume, - accompanied the
decline in 1941 from the year pre¬
ceding in the average percentage
cost of flotation of all securities
phasizes that "the Series F Bonds
of
12-year appreciation pe¬
and are issued at 74% of
riod
maturity value, with an invest¬
ment
yield
of
approximately
21/2%, while the Series G Bonds
are 12-year current income bonds
issued at par and bearing interest
at the rate of 2W% annually.
"It is the Series F and G Bonds
that
of
vestment
be
high as $100,000 annually
aggregate of the two se¬
Either of these series can
as
for
corporate reserves
maximum holding can
the
since
well-adapted for in¬
so
are
the
ries.
registered in the name of a
corporation, which is not the case
with Series E Bonds.
Thus post¬
be
reconversion costs can be an¬
war
ticipated and funds to meet them
can be invested safely."
pigment Which stores
sunlight
or
sufficient
artificial light within
minute
one
throughout
up
to
enable
the
it
to
There was
issuers.
tial rise in the
substan¬
a
proportion of both
dollar
numerical volume and
the
volume
represented by certain
types of offerings which typically
involve a minimum of cost, notab¬
issuers
by
sales
ly
investors.
The
directly
to
methods
of
partici¬
also
decline in the cost
in the
pated
other
however,
offering,
•
:
rate.
Acts.
leased
by
Sponsor
Federal
ficials
and
is
work
trust
matters,
Dr.
Ned
the
Division
it
H.
of¬
corporate
whose
with
concerned
by
is announced
Dearborn,
to
of
Dean
General
of
Scheduled
tion.
attor¬
officers
largely
tax
of
needs
accountants,
neys,
this
Institute
Tax
the
meet
to
Educa¬
for
meet
a
two-week session after the details
of the
law have
Federal tax
new
Federal
Home
Administration
Federal Tax Institute
a
The
.
"I
that
announced
tion
on
June
29
tions
in the number of non-farm
real
estate
have
been
persistent
contrac¬
which
foreclosures,
characteristic
of
the
period since the depression of the
early
1930's, continued through
May. The total of 3,813 cases esti¬
mated for the month of May rep¬
resents
decrease
a
of
from
1%
the
previous month. This decrease
appears very favorable when com¬
pared with the customary Aprilto-May increase of 6%. As a re¬
sult the seasonally adjusted fore¬
have
been
asked
uncertainties
to the
as
ulation
resale
suant
SEC Issues Data On 1941
Securities Flotation Cost
Detailed statistics
the cost of
on
securities
of
flotation
effectively
registered under the Securities Act
of 1933 during the year 1941 were
made public on June 18 by the
Securities and Exchange Commis¬
The
sion.
bring
up
statistics, said the SEC,
to date the annual data
reports
by the Re¬
Statistics
Subdivision
presented in
search
and
of the
Trading and Exchange Di¬
A consistent annual series
vision.
of detailed cost data is now avail¬
able for the years 1938-1941,
Commission's
the
June
of
18,
said
announcement
which
in
continued
part:
"The main
statistical tables
ac¬
companying the current report in¬
clude all issues effectively regis¬
in
tered
1941
by issuers for cash
sale, namely: 70 bond issues to¬
talling
$1,353,198,000;
67
pre¬
ferred stock issues totalling $202,511,000 and 111 stock issues (ex¬
cluding investment company is¬
sues) totalling $386,113,000.
""The
for
of
cost
the
flotation
securities
in
which
1941
were
registered for sale for the account
of
issuers
lower
was
than
the
clear, of course, that no
seller subject to the General Max¬
imum Price Regulation may sell at
higher
price
a
than
Administration.
Cases may arise,
however, in which this maximum
is less than the'minimum price
established
under
;
"It is not the view of this
in
which there has been
in
cases
dollar
cost
for
volume.
The
each
type of
accompanied
by
security
was great increases in the dollar vol¬
offered
ume
Costs
of
in
each
rate
years
""Below
of
was
$1.90 out
estimated
1.9%.
or
cost
three
averaged
$100
proceeds
nual
directly to investors.
1941
gross
The lowest
in
the
2.9%
an¬
preceding
within the community
uniform
for
1938.
summarized
the
important points shown in
the analysis of the securities ef¬
more
of the State
fair trade price, that the General
ity and lecturer in the Division of
General
The
authorizes
committee
a
com¬
posed of J. K. Lasser, tax author¬
Education;
J.
Harry
27.2%,
as
agency's report further said:
Maximum
Price
seller
a
decline
tial
2.4%
1940.
issues
an
to 2.5%
from
the
range
of
for the years 1938-
Of
preferred stock, the 58
registered in 1941 carried
estimated
cost
of
flotation
of
;
Regulation
sell
to
below,
.
.
.
•
established new lows of 3.3%
tered declines from
previous lows
for compensation of 8.0% in 1939
and for expenses,
1.1% in 1940.
"(4) As in the immediately pre¬
ceding years, flotation costs in
1941
varied
according
to
the
method of issue. For bonds, those
which
aged
2.2%
those
underwritten
were
in
cost
distributed
flotation;
investment
on an agency basis,
1.0%;
those distributed directly by
issuers to investors, 0.5%.
preferred stocks which
derwritten
of
had
flotation
with
on
11.8%
an
those
an
of
agency
Those
were
average
4.3%,
for
un¬
cost
compared
those
Financial Advertisers
To "Convene
CHICAGO—The
convention
For
in
held
be
Oct.
Chicago j beginning
26 has been cancelled, it is
announced
of
Cullin,
Association
the
and
Assistant Treasurer of the Missis¬
sippi Valley Trust Co. of St. Louis.
by the Ex¬
This action was taken
ecutive Committee of the Associa¬
tion
.at
held at the
Beach Hotel in Chi¬
cago, July 11 and 12.
meeting
a
Edgewater
President
distributed
Cullin, in announcing
stock, the
common
order
same
were
said:
factors led to
our
"A number of
decision, which
is actually a consensus
opinion of
membership. First, of course,
is the request of Defense Trans¬
portation
Coordinator
Eastman,
our
the
registration fee, that convention travel be reduced.
practically constant,
Beyond that is the fact that the
distinguished
between
those
nearly 700 members of our Asso¬
which
were
partly attributable ciation are the men and women
and those which were not attrib¬
who
are
directing the greatest
utable to registration showed that
part of the tremendous advertis¬
which
the
was
ratio
of
the
former
declined
ing and sales
promotion cam¬
all
three
major
types
of
paign
being conducted by
the
securities, but the latter increased banks of the
country to sell War
for bonds
and preferred
stocks Bonds and
Stamps.
."
and declined only for common
Mr. Cullin concluded with the
stocks.
for
.
Bank dis¬
Pittsburgh
and
months ending
"(6) Cost of flotation in 1941
tended to vary inversely with the
size of both issue and
issuer, con¬
rates
in
was
less
yield
flotation
offered
well
years.
noted
was
as
of
to
in
for
the
underwritten
the
public in
the
three
cost
of
bonds
1941, as
preceding
by mail
on
to
which
that
heard
had
a
th<°
been held in
equivalent
would have
program
they
1942
Chicago.
convention
The Office of Price Administra-:
tion
increased
has
levels
all
over
dried
fruits,
No. 2, which are comprised of the
Leon
Henderson
smaller
communities,
were
1.3
and
1.7, respectively.
Counties
consisting of the greater number
of dwellings registered rates of
3.0 for Group No. 3, and 4.0 for
Group No: 4: All groups were be¬
low the rates registered for the
12-month
period
ending
May,
July 1.
194!.
ners'
,
the
canned
densely populated areas. The fore¬
closure rates for Groups No. 1 and
ceiling
and
f.
most
•'
Price Administrator;
announced
on;
He said that the increase;
in
prices for the 1942 pack wouldas much as 15%.
In
statement,
Mr.
Henderson
ex¬
plained that growers' prices for;
fruit have risen sharply under the,
average
>
parity
formula
Control Act
in
set
Price"
the
and, in addition, can- ,
and transporta¬
labor
costs
..
~1
—;
tion
—
costs
higher
are
than, last,
'
•
■
'.
' '
'
;
Get Merit Awards
genthau on July 4 personally pre¬
certificates
sented
industrial
and
of merit to
business
16
organiza¬
in Dutchess County
tions
(N. Y.)
for
participation of 90% or more
war savings bond payroll
allotment plan.
The ceremony
took place at the plant of the In¬
in
the
ternational
Business
Machines
Corp. at Poughkeepsie, N. Y.
Mr.
cials
Morgenthau
of
the
16
told
the offi¬
organizations and
cording
July
on
the
other
Fourth
day."
of
here working
July
like any
Mr.
statement
addressed
directly
to
blamed the'
situation on the special price con-'
cessions granted by Congress to."
farm products, and on refusal of
Congress to approve a subsidy'
program permitting the govern¬
ment to absorb higher costs of
fresh fruit.
He is quoted as say-;
ing:
all you men we see
the Associated Press
Henderson in his',
to
1,
American housewives,
;
to tell him about
for the function of
and retailing."
Ac¬
ing, margin
wholesaling
employees of the I. B. M. plant,
operated that day, that "the
high-v
est March levels—"leave no work¬
which
Mr. Hitler than
He added that the estab¬
season.
lished ceilings—fixed at the
f Secretary of the Treasury Mor-
committees
Association could actually "sit in"
Ceiling
On Canned & Dried Fruits:
more
the
interesting
the
OPA Raises
May, 1942.
"The concentration of the
favorable
I
basis, and 1.3% for
directly by the cancelled,
A breakdown of expenses
than
Victor
by
York,
Only Boston, New
tricts reported a rate greater than
the national average for the 12
annual
Ad¬
May.
in
that the 1942 convention would be
cost ratios in the
"(5)
27th
vertisers Association scheduled to
distributed
issuers.
By Mail"
Financial
the
of
aver¬
bankers
and
ing
President
of
by
Regulation."'
the 2.7 rate for the 12 months end¬
and
0.9%, respectively. For common
stock, compensation of 1.7% and
expenses of 0.7% in 1941 regis¬
announcement
that United States Government is now
charged
with
spending a little more than $1 a
handling the cancelled convention
for the account of issues in 1941:
day for every man, woman and
are
now formulating
plans for a
"(1) Costs for each of the three firming tendencies for the former
unique and original substitute—a child in the country and approxi¬
major types of securities were shown in the 1940 data and for the
"Convention-by-Mail."
He said mately
$4,500,000,000
must be
much lower in 1941 than in all of latter in the data of all three
pre¬ that the
plan was naturally in a raised each month for the rest of
the preceding three years.
For ceding years.
formative state, but that they ex¬
bond issues, the cost of flotation
this year.
I do not know of any
"(7) A definite tendency to pected
to
develop
a
method
in 1941 averaged 1.5%, a substan¬
vary
in the same direction as whereby
all
members
of
the better message to send back to
fectively registered for cash sale
observance
compared with the
average
level of the 1935-1939
base period.
:
by
.
are
office,
>
but
the
fair
State
a
trade contract.
that price. .Where the price estab¬
lecturer on taxation at
"When compared with the cor¬
lished by fair trade contract has;
"(3) A breakdown of cost of the New York
University School responding month of 1941, May
flotation into two components—
been
generally observed during
of Law, and Paul Studenski, pro¬ foreclosures were down 29%. Each
March and the violations repre¬
compensation and expense s— fessor of economics in the New
Federal Home Loan Bank District
showed that changes in the first
sent the abnormal situation, en¬
York University's School of Com¬ and all but 10 scattered States
component accounted vfor the
forcement of the fair trade con¬
shared in this improvement over
merce, Accounts, and Finance.
change in the total. For all types
tract would not be regarded by
During the 12
Sessions will be held mornings May of last year.
of
securities
effectively
regis¬
this office as substantially inter¬
months
ending in May,
50,700
evenings during the twotered for sale for the account of and
fering with the purpose of the
week period, leaving the after¬ foreclosures took place — a total
issuers,
compensation
averaged
General Maximum Price Regula¬
28% below the same period a year
1.3% in 1941 compared with the noons free for members to attend
tion or the" Emergency Price Con¬
to personal and business matters previous.
previous low of 2.3% in 1938,
trol Act.
'**
"The foreclosure rate for the
whereas 1941 expenses were about during their stay in the city. Some
"In such cases, if a retailer is.
United States as a whole for the
the same as the average for the 20 nationally known authorities
enjoined by a State court from'
on
Federal tax matters have al¬ 12 months ending May, 1942, was
four years.
For bonds, the com¬
at
the maximum
price,
2.7 cases per 1,000 dwellings, as selling
pensation
in
1941
averaged ready accepted invitations to be¬
authorized by the General Maxi¬
3.7 for the 12
come discussion leaders and
it is compared with
1.0%
compared
with
the
pre¬
mum
Price
Regulation, he may
months ending May, 1941.
The
vious low of 1.8% for 1940 and expected that representatives of
apply to the Office of Price Ad-',
the expenses of 0".5%' were equal the United States Treasury will May, 1942, non-farm foreclosure
ministration for an adjustment of
rate projected on an annual basis
to the average of the preceding also attend the conference, Dean
that maximum price in accord-:
was 2.4 cases per
1,000 non-farm
'
three years.
For preferred stock, Dearborn said.
dwellings or slightly lower than ance with Section 18 of the Gen¬
both compensation and expenses
eral Maximum Price
other
in
price'
Rudick,
three preceding years, as was also
the number of issues registered,
not
the
established by the Office of Price
at
conducted
•'■
5.5%, 11.2%, and 0.6%.
decline
i
is
substantially
in
Reg¬
main¬
State Fair Trade Acts,
to
"It
'
—-
price
tenance contracts entered into pur¬
closure
6.5%
have
relationship between
and
the month of May and now stands
declined
clarify
the General Maximum Price
completed by Congress, the
index
to
which
Institute
be
re¬
Ginsburg, Gen¬
OPA, follows:
Tax
will
Fair.
David
been
program
State
statement,
arisen with respect to the position
of the Office of Price Administra¬
Bank
Loan
The
eral Counsel of
glow
Non-Farm Foreclosures
fall
Regulation and
Trade
some,
NYU Will
sor
Price
night.
sues."
New York University will spon¬
registered for sale for the account
a
Company will market a new
product — a luminous
blackout
decline from 9.2% of 1940 was ac¬
Bonds, which are available only
to individuals, Mr. Heimann em¬
have
the
in
preceding
three years.
Tests by yield and
quality ratings failed to show the
competitive-bid
issues
were
of
superior quality to all other is¬
bility of a more stable future for facilities and the greatest decrease
all business.
Third, they repre¬ in cost for that method of offer¬
sent
than
1941
in
":
:"'.y ;
"This is not a Satisfactory solu-:
It trans-:
increases a:
that the government might'
It is inflationary.
tion.
into retail price
lates
burden
properly assume as a
nected with the war."
OPA
The
all levels of
ner,
can-s
April 30 issue, page 1705)-
due
formula
over
ceiling, over
April 28 order (referred to
our
but
the
selling—packer,
wholesaler and distributor—-
in its
in
set
charge con-'
to
could
the
110%
not set
growers' prices.
a
parity;
ceiling"
Volume
156
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4090
-
that
More Dealer Views On Minimum
parts
received
have
We
v
of
.minimum
in various
letters from dealers
more
some
Capital Proposal
the country expressing their views regarding the NASD
capital proposal.
Although July 15 was the closing date
and the other proposed amend¬
Association, we are publishing
the letters on hand only for the record. In all cases, we have scrupu¬
lously observed the wishes of our correspondents who preferred to
in
presenting views in
great interest,
is
I
What you
entirely different matter.
an
hope
(From
no. 39
dealer
carry
for
much
as
in the
(Dealer No. 34)
"A man in business for him¬
"Chronicle", of July 29th who says that
self who has not
himself
accepting deposits and trusts without any capital to protect them."
This dealer's premise is entirely false. A bank agrees to permit a
customer to withdraw his money on demand.
This might not ordi¬
narily
funds are loaned out, invested in
Consequently,
fit to oblige banks to comply with certain mini-
possible
be
legislators saw
to
requirements
mum
words,
money
so
In the
really
to return it to him on demand and assumes the risk
agrees
inherent in
'
doing.
of
case
/•'//. /'•!//'
^
investor buying from a securities firm, he
an
(From
the risk
assumes
New Jersey Dealer)
a
no. 40. '
As
of the
one
•
"John Bowmans" allow
many
regard to the proposed NASD amendments.
express
my
//'://' ///:''•
I have been in the securities business for more than thirty years
and from many contacts know that a man's
the size of his bank account.
upon
The
•
whole
Naziism.
I
am
thing smells
to
integrity is not dependent
We
interested
much
are
//:;/,/^"
article
an
have recently
you
carrying in "The Commercial & Financial Chronicle"
of the
NASD regarding a minimum net operating capital of smaller
security dealers.
Our
•
a
'/.//■;
'•
the
on
of the rule
hardship
on
us
V"'..?,'-'/vv'V
voted "Yes"
company
suggestion
'passage
a,
been
the efforts
on
part
of
■
Article
on
NASD
the
1, Section I, feeling that
virtually amounted to the
and while it might not necessarily work
anyway
it would depend
their construction of what is
on
a
We do not wish, in any way, to antagonize the NASD but if you
will advise us that your responses from the dealers indicate that a
will recall
we
our
vote.
detailed requirements
governing agencies it is difficult to know when
our
part of
the
on
you
are
Tn all minute details with their rules and regulations.
see
the
complying
It is certainly
desire and intent to cooperate in the fullest but we can assuredly
where
a very
dealers
on many
instance, in making
For
comply with the State's requirements,
we
bond to
a
have placed $5,000
Gov¬
Certified Public Ac¬
ernment "G" Bonds with the bond company.
countants consider that a net asset. As to what conclusion the NASD
•
We would not like to have
our
name
used but the contents of
this letter may be used in any way you see fit, just so our name is not
jbrbught tip. la Connection, with lt.^(From^
" ;/;•••/ /
I
have
Fla.* Dealei:):.,:
V
DEALER NO. 42
been reading
with
interest
some
f;
'/;
your
comments
the
on
I
am
wondering if there is
who
anyone
.has written you in favor of the proposal and whether you are willing
to make your columns available to arguments on the other side.
Whether
or
not
the minimum capital requirement is upheld for
membership in the NASD, it cannot be justly maintained that such
requirement would prevent
There
ness.
are
anyone
dealers
in
have
my
market
capital
from
entering the industry cannot be supported.
Membership in the NASD is not mandatory. It is fair to admit that
any Association should be permitted to establish its own qualifica¬
/
tions for membership.
It is
a
well known fact that it is
now
'■
illegal to establish
which the bank is to be established, but in all cases there
iftinimum limitations,
^bank
may
be
which
organized.
are
No
now
one
reading
definite
are
generally accepted before the
now
maintains
that
this
rule
is
the
even
break for all.
haven't
We
to until
feel that
speak for the financial interests which make up the New York
Stock Exchange, and possibly you have overlooked that the Exchange
controls almost as complete a monopoly as exists in America today.
Even
the smaller exchanges do insist on some minimum capital
vestment
sidered
a
,
as
and
this
is
generally accepted.
This position is not
in¬
con¬
"un-American" and is recognized as necessary to maintain
high plane of professional conduct.
paid
for this
dues
our
security
business and I believe
it
should
have
Cooper,
National Asso¬
Real
Estate
of
each
levying
government
deal
.a
flict
dealer and
yet,
year
keep him
don't intend
and
We think the suggestion
of pooling
you
in business,
is
a
fund to
a
good
and
competition
con¬
the
175,000 taxing authorities strug¬
gling for. the taxpayer's dollars
and pennies.
An outstanding ex¬
ample of this, he pointed out, is
some of the Federal
tax policies
interest
of
under
now
one.
among
discussion
which
rather than for NASD
would threaten the very existence
of
local
and
state
government
why the NASD anyway? Just what
good is it accomplishing for all the money we dealers have paid in
units whose continued functioning
is essential in the national emer¬
dues?
gency and
We
would
prefer to give $30 to this
cause
dues.'
.
dealers wrote
many
You
tect
count
can
the
small
dealer
American way.
Chronicle."
in
us
Keep
We
feel
you,
on
and
up
action it is
any
keep
him
in
the good work
that
sure
business
The
to take to pro¬
necessary
in
the
good
would
you are
of you.—(From a Dealer in Middle Western
NO
thereafter.
bill, sponsored by Repre¬
sentative
old
doing through "The
big majority of dealers are back
a
Coffee
create
of
Washington,
14-man
a
commis¬
sion to study the tax structure on
nationwide basis, and outlines
procedure for integrating the sev¬
Town)
a
45
units
eral
and
eliminating
con¬
Ever since your first article urging the members of the National
of Security Dealers to vote against the proposal for a
flicts and competition.
It is simi¬
lar to measures which have here¬
minimum capital requirement, I have wanted to write to you to
compliment you for your courage and foresight.
Although, since we deal only in municipal bonds, we are not
members of this association, it seems to me that anyone of mature
judgment should quickly understand that your interest is in preserv¬
tofore been introduced and which
ing in America the principle of freedom from governmental dictation.
introduced recently
Association
I think
we
in
the field of finance
publication sufficiently
a
interested
indeed fortunate to
are
in
such
the
of
which
and local officials
has
had
Federal, State
well
as
as
tax¬
payers' groups,
One of these was
by Homer D.
Angell, representative from Ore¬
gon, at the suggestion of the tax¬
payers'
council.
The
proposed
have
a
Cincinnati, Ohio, Dealer)
a
principle
wide support from
principle to express
and foresight as you have done.—
it's convictions with such courage
commission
pointees
would
include
ap¬
the
by
President,- the
House and the Senate, and repre¬
We want to congratulate and thank you for the fight you are sentatives of economic
groups in¬
waging against the proposed NASD minimum capital requirement.
terested in home ownership, urban
We have been in business quite a few years and at times our
real estate, labor, commerce, edu¬
capital has been considerably in excess of the proposed minimum
cation, and farming.
/■'.
requirements, but at the present time it would work a hardship on
DEALER NO.
to meet this requirement.
have
never
regardless of size, and do not
make
46
We have good banking connection and
had any difficulty in
handling
the $473,300
outstanding Mortgage
3s, due 1963, which had been is¬
in the amount of $1,341,000
in
4938
to
refund
equipment
trust certificates of the predeces¬
sor company.
The company's bal¬
business transactions,
our
what possible difference it could
see
to anyone besides ourselves whether
not
or
we
have
a
sued
capital
of $5,000 or more.
We
joined the NASD because
which it
was
founded and because
believed in the principles on
believed it would help us, and
we
we
ance
know what could happen.
a
long time to build
it would be easy
but short
take
We
pride ourselves that
we
have
and if
up;
only local dealer in
a
we
move
in, possibly in
advantage of the goodwill which
of years.
Do
be better off
not think
our
current
city
good reputation which has
were forced out of business,
enough for other individuals, who
character, to
on
the
are
we
long
are
on
your
assistance.—(From
Dealer in
a
Indiana Town)
be
Chicago, South Shore
the
sole
standing.
& South Bend Railroad
of
class
The
capital
company
present time has
at
1940
14%
58%
been
out¬
reported
worst
the
in
of
years
and
1932
funded debt,
no
revenues
over
Freight traffic accounted
of total operating reve¬
nues in 1941, about 39% being de¬
rived from passenger traffic. The
company's operating record has
been better than similarly situated
interurban lines, deficits having
for
Small
a
27%
higher.
think that the investors in this community would
better protected under these circumstances?
We do
again for
freight
almost
and passenger revenues were
so.
Thanks
of
1941,
increased
our
you
or
assets
During
cash
office space, and
have built over a period
we
sheet at Dec.
31,1941, showed
$1,367,084, in¬
cluding cash of $1,092,755, and
current
liabilities amounting
to
$796,751,
leaving
indicated
net
working capital of $570,333.
organization is trying to put us out of business.
What would happen if we are forced out of business for lack of
the $5,000 capital?
We do not know what would happen but we
only
the
1933.
the
two
depression—
In
recent
more
no
equipment trust obligations or years, particularly since 1938, net
bank loans outstanding.
In line income has registered steady and
(Continued from page 172)
with its plan to simplify the capi¬ sizable increases.
The following
owned by Midland Utilities, be¬
tal structure, the company'called tabulation
shows
comparative
came converted into
19,476 shares
for payment Oct. 1, 1941, at par earnings for 1939, 1940, and 1941:
of new
Common
Stock
on
the
of
share
one
of
new
Com¬
Railway Operating Revenue:
Passenger
.,.........................
Freight.
.;..v....
,y.:
Other Transportation
Other Railway Revenue .....................
for each share of old Second
The old no par Com¬
stock, all
of which
was
owned by Midland Utilities, did
not participate and was cancelled.
Preferred.
.
1941
1939
1940
$1,209,160
$1,058,515
1,812,996
42,302
1,428,687
1
44,881
39,381
$1,023,365
1,178,998
44,902
33,802
$3,112,493
$2,571,464
$2,281,066
$529,118
$274,287
1,000
$207,436
$428,118
22,491
$273,237
18,615
$207,436
15,535
$450,608
11,883
2,131
$291,902
$r2r\971
19,650
34,714
..........1....
1,948
2,835
....................................
$436,594
$270,304
$3.47
$185,421
$3.38
1,984,353
3,036,335
96,672,252
1,775,229
2,854,519
80,170,407
........
mon
.
..........
.....
......
48,034
.4
.
mon
The
of the old First Preferred 75%
the
new
of the
of
the
far
as
basis
with
of
Common and the holders
old Second Preferred 25%
new
can
of
Common
be
Stock.
determined
available
on
So
the
information
respect to ownership of the
classes of old
stock, Midland
about 62,372
shares, or about 80%, of the new
the supporting commendation of responsible financial magazines who
Common, and about 15,532 shares,
purport to represent the views of the industry. At least the reasons or
20%, is in the hands of the
for its efforts should be presented.
public.
You have, of course, the unrestricted privilege of expressing
Giving effect to this recapital¬
your views on any subject you wish, but it does seem only fair ization, the Common Stock will
prestige of the
Mr.
Boards,
pointed out that the historic prac¬
tice
1, Section 1, capital require¬
dealers in their letters to
protect the small
two
The NASD is honestly and sincerely trying to elevate the tone
and
Ohio.
the others has led to serious
with
know what is going to happen.
we
made by several
It may be
you
you
of
,
"Chronicle"
recapitalization plan, which
is now effective, having been ap¬
likewise argued that no one can become a member of the New York
proved
by the ICC, the SEC and
Stock Exchange unless they have free capital in a far larger amount
the stockholders, gave the holders
than the sum suggested by the NASD. We presume that
contrary to the American policy of an
Council
taxes in various forms without re¬
,
relative to the NASD proposed Article
new
bank unless certain minimum capital requirements are met.
These
capital requirements may vary with the size of the community in
.
of
of
ciation
ments.
basis
a
National
Taxpayers and former
Committee of the
have
$5,000
a
and
are
.limited
been
from entering the security busi¬
elsewhere who
actively in the security business but who are not members of the
/NASD.
The statement made that minimum capital requirements
.would prevent newcomers of unquestionable integrity but with
many
the
gard for the taxes being levied by
and
-proposed minimum capital requirement applying to members of the
NASD, and observe that so far all of the letters you have printed are
opposed to this amendment.
dealer should
Every
versa.
to
who is also Chairman of the Tax
are
DEALER NO. 44
I
taken
;■*
vice
or
commission
a
•
now our own
'would take of it is something unknown.
v
securities
v
us
distinct hardship could be worked
; if this proposal is carried out.
/
Particularly do we refer to their construction of what constitutes
5a liquid operating net $5,000.
into
of
dent
Real Estate
Governor
•/.
of
eral, State and local tax policies is
urged by Myers Y. Cooper, Presi¬
in turn loaned
are
■
■
New York City Dealer)
a
(From
liquid net of $5,000.
majority will vote "No,"
In this day of rigid
■
,
DEALER
Colo., Dealer)
a
improve the coordination of Fed¬
erroneous
If you print this letter please do not disclose the writer's name.-/
(From
of too much regimentation and
me
in
V
v
dealer no. 4i
<
:1
depositary for funds, which funds
a
.
dead set against it.—(From a Denver,
entirely
an
the highest integrity but, to take the position that a capital of
is synonymous with integrity is the height of absurdity.
my
have taken in
you
You have expressed
//'V1
myself.
sentiments better than I could
to
me
appreciation and hearty endorsement of the stand
taken
security dealer is the intermediary through whom funds
converted
As
<
■
,
has
34
No.
■
A
,
,
,
dealer
;•/
(the
in the event that his judgment proves
when he concludes to purchase a particular stock or bond.—
•investor)
-wrong
is
bank
a
and
against such contingencies.
In other
temporarily .investing the other fellow's
guard
letter
of
badly.
securities, etc., and such loans and investments go bad.
•our
writer
Urged
Congressional action
resolution calling for the es¬
tablishment
43
or invested.
Capital is required for banks in order to provide a
margin of safety in the event that the loans or investments turn out
such
where
Tax Structure
Immediate
premise for his argument.
$5,000 to protect his customers and to
as
his business has no more justification for being in business
than a bank or a trust company would be justified in
on
The
A bank is
New York City Dealer
Coordination of U. S.
editorial col¬
your
friendly spirit in which I write.—
DEALER NO.
/
I differ with the
the
in
say
on
ments to the rules and by-laws of the
1
one.
understand
you
matter of
any
on
New Orleans Dealer)
a
for the balloting on this proposition
remain anonymous.
columns,
news
should present the opinions of both sides of the
you
argument and not only of
umns
your
179
Utilities
now
owns
Total Railway Operating Revenues...,,;.....,,,
*Oper.
before
Income
Federal
Income
Operating
Income
Other
Gross
Inoome
Taxes
Taxes
101,000
(**)
.........................,
................................
Income
Interest
Other
Net
Federal
Funded
on
Interest, etc.
Inoome
Debt
(t)
...........
$5.60
Earnings Per Sh. New Common (t)
Passengers Carried
2,271,511
3,443,142
115,790,418
Revenue
Passenger
Car - Miles
Ton
of
Miles
.......
Freight...........
$557,140;
Notes:
♦After depreciation and maintenance
(**) No provision for excess profits tax.
(t) Bonds called Oct. 10, 1941.
(I) Based on 71,904 new common shares.
An
initial
dividend
plates
disburse¬
Based
appear
on
this
1940,
of
$451,377;
a
1939,
$391,797.
regular
$2.00, payable
annual
semi¬
annually, plus extras.
Dividend
distributions, in view of the road's
1942,
good financial position, are ex¬
pected to be liberal in relation
1942.
payment, it would
that the company contem-
•
paying
dividend
ment in the amount of $1.00 regu¬
lar and $3.00 extra, or a total of
$4.00, was declared June 15,
to holders of record June 5,
i
i
to
earnings.
-
THE COMMERCIAL & FINANCIAL CHRONICLE
180
Willard Of B. & O. Dies
,
Daniel Willard, Chairman of the
of Directors of the Balti¬
iBoard
and Communica¬
Transportation
Commission,
and in that capacity, at the re¬
tion of the Advisory
National
the or¬
more & Ohio RR. Company, died
at Baltimore, Md., on July 6 at ganization of the so-called Rail¬
the age of 81.
Before his election road War Board and the co-ordi¬
as Chairman on July 1, 1941, he nation of the steam railroads for
had been President of the
Com¬
for more than 31 years, long¬
est tenure of any President in B &
O's 115 years history. Both of Mr.
pany
quest of the Council of
Defense, brought about
war purposes, a plan which con¬
tinued in effect until the railroads
were
taken
by the Federal
Dec. 28, 1917.
over
Government
on
preceded him
"On Nov. 17, 1917, Mr; Willard
in death.
Harold, the older, died Was made Chairman of the War
during the influenza epidemic of industries Board
by
President
Willard's
children
Daniel, Jr.,
the first World War.
Assistant General Coun¬
who was
sel
T,of the B & 0, and who was
for
awarded the Croix de Guerre
Owing to the
serious
transportation difficulties which
developed in the eastern section
of the United States because of the
unusual severity of the winter, he
resigned on Jan. 11, 1918, in order
to devote his entire time to the
Wilson.
while serving as First
Lieut., F. A., United States Army,
in" France, died May 17, 1940. Mr.
Willard is survived by his wife,
management of the Baltimore and
his daughter-in-law, Mrs. Daniel
Ohio property.
Willard, Jr., and four, grandchil-,
/"During the 31 years Willard
dren/
■■■■'•
! •
was
President of the B & O he
bravery
■
„
Mr/Willard, who was born on
a
farm in North
Hartiand, Vt., in
also most influential in shap¬
was
Federal legislation affecting
railroads, and' a highly re¬
spected witness in railroad hear¬
when he began as track laborer
ings held by Congress and in im¬
at North Hartiand.
After serv¬
portant rate cases heard by the
ing in various minor capacities ICC. The last Federal legislation
with: other roads, Mr. Willard re¬ in which he was vitally concerned
signed as superintendent in 1899 was the Chandler Bill. This was
of the Minneapolis, St. Paul and
introduced at his request, arid
Sault' Ste, Marie Rwy. Co. (the
provided that a corporation secur¬
Soo Line), to accept the position
ing consent from a certain pro¬
of Assistant General Manager of
portion of its creditors to a fi¬
the Baltimore & Ohio under F. D.
nancial reorganization could, with
Underwood, who had been approper court approval/ make the
pointed General Manager of the
reorganization plan effective de¬
B & O, but who had formerly
spite minority objection. This bill,
filled the same position with the
passed in the closing hours of
Soo Line. In May, 1901, Mr. Un¬
Congress, July 27, 1939, saved the
derwood, then Vice-President and B & O from
going into receiver¬
General Manager of the B & O,
ship.
-■'/.
1861',/'started his railroad career
with
became
Central
Vermont
the
.
President
Railroad.
of
Mr. Willard
*
the
was
Erie
The
same
First
year
he
able
career
by the B
adds:
and
A
made avail¬
& O Co. in part
v:,-.'/
/
dent of the B
"
resigned as Presi¬
O, June 1, 1941,
&
Chairman
made
was
Board of Directors."
Mr.
the
of
//Z::'/-'//
:
held many honor¬
Willard
degrees—one from the Johns
Hopkins University; he had been
elected a member of the Board of
ary
Trustees of/ the University in
was
elected
President
of
1914;
the
Board in 1926, and Was
elected a
"tytr. Willard Remained with the
Erie until January, 1904, when he trustee of Johns Hopkins Hospital
in 1927.
resigned to become Second VicepreSident of the Chicago, Burling¬
ton'Quincy RR., in charge of
operation and maintenance, with
headquarters in Chicago. He filled
that position for six years and a
part of the time was also ViceAccording to recent findings in
president of the" Denver/ Texas
a survey now being completed by
& Fcirt Worth RR. and President
the Twentieth Century Fund, be¬
of the Colorado & Midland Rwy.
hind the present wage controversy
He resigned from the Burlington
in the steel industry is a. record
and associated companies in 1910
of
steadily
rising
output
per
and became President of the Bal¬
timore & Ohio, Jan. 15 of that worker, so that in 1939 the labor
cost of producing a given amount
year. :
Steel
cf
'
"In
■
1911
Mr.
Willard
general pay increases and im¬ determined that the quantity of
provements in working conditions sugar available for distribution to
and schedules.
The 10 cents an civilian consumers between July
hour increase, granted after Na¬ 1 and Dec. 31, 1942,-would be 3,tional Steel had pointed the way, 435,000 short tons.
for
Wage Dispute
Subject of Survey
steel
approximately
was
was
the
in
1936, even though
elected President of the American
hourly wage rates rose nearly
Railway Association and held that
25% during that period. Improved
position: two years. •/.
/?.-/'■-..
production methods are largely
"In 1912 he was chosen by the
eastern railroads to act as their responsible for the increased out¬
put per worker, says the Fund's
representative on the Board of
announcement.
Advance portions
Arbitration selected to decide the
of the survey, which
describes
Questions involved in the contro¬
how collection bargaining works
versy between the 52 eastern rail¬
in 16 major industries, were made
roads" and their locomotive engi¬
public on June 22 by Evans Clark,
neers; ^/?;?/ZZ//.v.*'-/?:/.
"In 1913 he was elected by the Executive Director of the Fund,
same
that affect wage
negotiations, past
Dr. Harbison says:
and present,
"Recent
managerial
tech¬
and
the,steel industry to offset higher
rates by economics
wage
in the
sulted, in
a
of the Interstate Commerce Com¬
mission, in which the Commission
as
who
the
said
"the
demand
of
the
companies As now before
National
War
Labor
Board.
The issues in this case are better
understood
if
we
view
them
Unanimously stated that in its against the background of hap¬
opinion the eastern railroads were- penings in recent years."
Details of wage negotiations in
receiving less net than was for
the best interests of the public as the steel industry are set forth
in
a chapter written for the Col¬
well, as of the railroads.
Impor¬
tant
advances
and
concessions lective
Bargaining
Survey
by
Frederick H.
were granted by the Commission
Harbison, of the
'as a result of the case, although Economics
Department
of
the
the railroads were not given the University of Chicago, who is now
on duty with the War Production
full
increase
for
which
they
Board in Washington.
askecl ■
.
Describing
"Ori Oct. 30, 1916, Mr. Willard the "New Standard Agreement"
was appointed by President Wil-.
negotiated in 1941 with most of
son
a
member of the Advisory the major steel producers after
~
Commission of the Council of Na¬
tional
Defense,
Commission
was
and when the
organized he was
elected Chairman, in which posi¬
tion he served during the period
-of the war. He also became Chair¬
man
of
the
Sub-Committee
on
sufficient
sugar to maintain
present ration levels in 1943,"
Mr. Henderson said.
"But the
the amount of sugar now on hand,
we
feel warrant distribution of
at least
200,000 tons at this time.
our present
shipping situation
companies produced a 10% •
continues, it will result in no
larger tonnage than in 1937, yet
shortage.
We're taking what I'd
the total number of man hours
call a conservative gamble."
worked was 7% less.
Total
In 1940, the major
of labor.
use
steel
pay
rolls
were 3 % less.
In 1939 the
labor, cost of producing steel was;
will
require
a
voicing of thb
whole national experience and a
pooling of the effort of the in¬
If
From the announcement of the
OPA we also quote:
in
every: part
Of
the
country.,V-"1- • /
r?
"Local chapters of the Home '■/
Builders Institute of America and
local associations of. the National
Home Builders Association would
be recognized in the
proposed new
organization plan,
The new or¬
ganization can come into being
as soon as
"Actual
by-laws and procedures
distribution of the ex¬ are ratified
by these local associa¬
approximately the same (for com¬
tra sugar ration will entail no tions of HBA and members and
parable periods of operations) as, red
tape, the. QPA said; For the local chapters of HBI.
•;
Z
it was' in
1936, although wage individual
consumer,
it simply
Officers of the proposed organi¬
rates were nearly 25% higher."
means
cashing in coupon No. 7 zation as soon as it is established
From the announcement made of the ration book at any time
will be: Hugh Potter,
Houston,
by the Twentieth Century Fund between July 10 and Aug. 22. The
Texas, President; Harry J. Durwe also quote:
No. 7 coupon will entitle him to
bin, Detroit, Vice President; Car¬
"The traditional opposition of buy the two extra pounds, without roll
Shelton, Philadelphia, Secre¬
the major steel companies to col¬ any effect whatever on any other
tary, and George Ellis, Chicago,
lective
'
bargaining was dramat¬ coupons in the book.
Treasurer.
"Likewise, there will be com¬
ically changed by the agreement
Objectives as outlined in the
worked out between Myron C. plete absence of any red tape for proposed
by-laws;
;:
/
Taylor of the U. S. Steel Corpora¬ industrial and institutional users.
tion and John L. Lewis of the When they apply for their regular
Congress of Industrial Organiza¬ sugar allotments for use in Sep¬
1.
aid
To
the
Government
in
providing needed housing through;
private enterprise at low cost.
/
tember and October, which they
March, 1937.
Dr. Harbi¬
2. To collaborate with manu¬
'U. S. Steel accepted may do on or after Aug. 15, they facturers for the production of
neither the closed shop nor ma¬ simply will get this extra allow¬ new and less
costly building ma¬
ance of sugar above their regular
jority rule; it merely agreed to
terials.
•'
•; /;■/.
?'//•
'allotment; ' 1/■.?. >"//'; ■:/■/?''//,'/
incorporate in a written contract
3. To aid in standardization of
"While
the
extra
sugar
for
these
what had been since
1934 the
building codes and to encourage
two classes of users does not actu¬
stated policy of the industry with
the elimination of uneconomic and
ally
become
available
until
Aug.
respect to bargaining with repre¬
cumbersome
governmental
pro¬
15,
OPA
said,
institutions
and
in¬
sentatives of employees.
Yet a
cedures affecting home construc¬
dustrial consumers may step up
signed contract implied some de¬
tion to minimize cost and delay.
their rate of consumption imme¬
gree of acceptance of the SWOC
4. To
co-operate with
other
in
anticipation of the
and the abandonment of the prac¬ diately
trade associations
interested
in Z
forthcoming increase.
tice of opposing outside Unions?
home building to secure united
"Institutional
users,
such
as
"On the union side, one result
action
in
matters ; of
national
of this agreement, was that, 'it restaurants, hospitals, etc., will re¬
policy, ? •./
-y/ v-' ;*/ .y?/;Zy
ceive 75% of their normal needs,
caused the SWOC to deviate from
instead of 50% as regularly al¬
its original objective of collective
lowed, and industrial users will "Hot Oil" Act Made
bargaining on an industry-wide
tions in
son
says:
.
basis..
such
,
.
After 1937 there
was no
industry-wide
'policy of collective bargaining.
The large union companies fol¬
lowed one course, the smallest
concerns another, and the "little
steel" groups a third policy?
thing
as; an
,
"During this period of organiz¬
ing activity the membership of
the steel workers' union has fluc¬
tuated
greatly.
Of
the
600,000
members claimed by the SWOC in
receive
of their normal re¬
80%
quirements
iron
steel
and
industry,
about
500,000
which
Permanent By
instead
of 70%
as
.The extra allotment,
President
.
however, is for the
period only.
needless
a
one
additional
burden
on
the
OPA said."
newed
in
1937
scheduled to
and
members work in
eral Government
issue of July 2, page 22.
ing and fabricating plants, closely
related to the steel industry?
Dr.
a strong position
standpoint of mem¬
bership and of finances, at the
present time."
To Work With Govt.
To
work
out
through
means
A
two-pound extra ration of
will be released to consum¬
ers
No.
on
7
extra quantity will also be made
available to industrial and institu¬
tional
users as an
July and
increase in their
August allotment, Mr.
Henderson
said.
The
OPA
fur¬
ther states:
"The
extra
been
ducing States and makes the Fed¬
of
an
agent in the
restrictions
on
The Senate approved the legis¬
lation on Feb. 3 and the House
adopted it
on
June
15//??■;;;?•■■///
which private home building may
be
sugar
have
principal oil-pro¬
bootlegging "hot oil."
Homebuilders To Unite
both from the
OPA Allows Extra Sugar
laws which
enacted by the
enforcement
ers' union is in
was
bill supports the oil and gas con¬
servation
Harbison believes the steel work¬
1939,
expire June 30. The
employs
A reference; to the / announce¬
eligible for union mem-, ment regarding sugar rationing
bership.
The remaining 200,000 coupons 5 and 6 appeared in our
workers
metal process¬
New Bill
Roosevelt
signed on
allotment June' 22 the bill makihg perma*
nent the provisions of the Con"In no case, is there any reason nally "Hot Oil" Act prohibiting
movement in
interstate or
for anyone to go to the local ra¬ the
tioning boards to get this addi¬ foreign commerce of petroleum
tional allowance, OPA said,
'The and petroleum products produced
The
rationing boards are extremely in violation of State laws.
busy with other important mat¬ measure, originally passed in 1935
ters, and to go to them would be as temporary legislation and reheretofore.
1941, 'perhaps 400,000 are in the their already overtaxed facilities?
basic
Steel'
which finally re¬
decision on the part
case
in
our
nological advances have enabled shipping prospects, together with dustry
of thb so-called Eastern Five Per
lderit£' Committee, having charge
conditions, the procedures, - allo¬
cations, preference rating systems
"With American
hourly earnings of
Cent.'Rate
roads Chairman of the Pres-
of the Federal govern¬
To work out, under present
ment.
and
the like and the building
shipping facing methods whereby private indus¬
such perils as enemy submarine try
steel workers to 97 cents."
can
produce, as it, should,
Setting forth some of the im¬ activities and ; mine-sowing, no¬ practically all the war housing that
will
be
of
body
knows
whether
we
can
bring
portant
technical developments
permanent character
raised average
their sugar ration stamp
beginning July 10, it was
union for a blanket increase of
announced on July 4 by Price Ad¬
one dollar per day in the 'Little
ministrator Leon Henderson.
An
same
agencies
;
and
was
Vice-President
General Manager of the Erie.
sketch of his
"Mr. Willard
offered
position of General Manager
of the B & O, but went with Mr.
Underwood as his Assistant, June,
elected
the
RR.,
the
'1901.
ing
Thursday, July 16, 1942
kept alive during the war
period and through which it can
supply as much as possible of our
housing needs, first steps are now
being taken to unite the entire
home building industry into a
single organization.
The new or¬
ganization is proposed to unite
the memberships of the National
Home
the
Builders
Home
America. In
Association
Builders
Institute
Goldman, Sachs Add Six
Jerry W.
Cox, formerly man¬
Philadelphia office of
Tucker, Anthony & Co., has be¬
come
associated
With
Goldman,
ager of the
Sachs & Co. in their office in that
city at 1416 Chestnut St.
.
Gardner F. Parks is represent¬
ing
the
firm
in
Albany,
N.
and from offices at 100 State St.
of
C. Conrad Carlson, Lester
G,
J. Kelly and R.
Wallace Wilson have been added
,
joint release, issued
officers of the
two organizations state that tenta¬
tive by-laws have been prepared
Kaas,
and organization procedure
30
a
June 27, executive
is be¬
Y.,
Edward
to the staff of
Co.
in
their
Goldman, Sachs &
New
York office
at
Fine St.
ration, the
Mr. Parks's association with the
Price Administrator said, is made ing worked out for the proposed
firm was previously reported in
possible by receipt of somewhat great, all-industry group, which is
work very closely the/ "Financial - Chronicle" - of
heavier shipments from the off¬ expected to
with governmental agencies in its May 14, and Mr. Carlson's in the
shore producing areas than were
anticipated
sugar
the
when
ration allotments
were
present
fixed.
He
field.-
It is expected to take as its
name
"The
National
"Chronicle" of May 28.
Association
of Home Builders," says the an¬
possible to give as¬
Seaboard Reorganization:
regarding; the continuing nouncement, which adds:
L. H. Rothchild & Co., 11 Walt
"The proposed merger of the
basic ration allotment, however,1
because of lack of any assurance: two existing groups will form a Street, New York City, announce
association
of
h o m e that they have prepared a brief
that the shipping situation will re¬ national
on
the
Ernest T. Weir had made his an¬ main as favorable as it has been builders that will be truly repre¬ memorandum
Seaboard
nouncement
of a
sentative of the entire home build¬ reorganization
proceedings
and
voluntary 10 in the past two or three months.
cents an hour pay increase for
"Mr. Henderson's decision was ing industry.
It is absolutely es¬ the proposed treatment of the AIL
workers
at
the
National Steel reached
after
Copies of. this
consultation
with sential at this time that there be Florida 6s of 1935.
Company, Dr. Harbison says:
shipping officials and after the an, unquestionably representative interesting memorandum may be
said It is not
surance
.
.
.
"The Steel Workers Organizing
Committee won its main demands
Division of
the
War
group
who can speak for the in¬
had dustry
in conferences with
Industry Operations of
Production
Board
had
upon ;
from
request
Rothchild &
Co.
'
-
L.
H»
>
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4090
156
Congress Votes July Funds
/For Agriculture Dept.
•
*: President
Roosevelt
July
on
9
"stop-gap" legislation
permitting
the
Department
of
Agriculture
to
function during
the / month
of
July.
Congress
resolution
the
passed
7
July
on
of the deadlock
because
the
over
issue of
sub-parity grain sales and
funds for the Farm Security Ad¬
ministration
in theV $680,000,000
regular supply bill for the De¬
partment.
In
signing the measure /the
President said:/;"I am glad that this bill was
finally approved by both Houses
of the Congress without the pro¬
hibition against the sale of gov¬
ernment
feed
of
stocks
held
-
grains, but I regret that the opera¬
tions of a department so essential
to
Only Return
For Aid Sought By U. S.
the
signed
domestic
our
and
should be left in
such
ment at this critical
nation's
The
needs
war
a
predica¬
period in the
resolution
gives the Agri¬
about $56,000,000 to pay salaries and to con¬
tinue its ordinary processes in the
field during July but these funds
culture
With
Affairs
Public
of
finally
vote
amendment to
an
oted
crew
earth
will
once
You., want
job which
selling
for
rate
surplus
grains.
>
the
measure
>
your
about your
job
a
House
March
on
of
sale
passed
'
it
13
the
barred
government
held
-
day,
and
which
life
1
that will provide the ma¬
spiritual means for a
one
is
not
"You want
inevitable
fall
them,
'
hazards
those
on
to
of
least
where
existence.
mere
system where the
a
life
able
do
it
not
bear
to
education
use
and
are
a
to
open
aid
agreements
concluded with Great Britain and
countries
the
open
fighting the Axis
toward that kind of
way
world.
a
since July
1, the start of the
new
1
Tomorrow's Markets
Walter
Whyte
do that
No
But
:,
they
Half your
position should be sold
on any
further advances of say
points.
The stocks
hold
these:
are
2 to 3
you
now
Air Reduction
fail
cannot
peace,
farther
recent
along
years
(now
about
Allis Chalmers at
better.
23 (now about 26)
Half
to 23.
so.
raise
Half profits 35 V2
stop to 31.
or
34)
raise stop
profits at 27M>
or
International Harvester at
prom¬
the
field
the
to
take
us
the road than in
it has seemed pos¬
goal.'
of
discriminatory
international
trade
In
his
—Walter
:
[The
article
time
views
do
not
coincide
Chronicle.
Whyte.
expressed
in
necessarily at
with
They
are
V
this
of the
presented at
those of the author only.]
an
99
WALL STREET
NEW YORK CITY
tions—to
of
goods between
feed
and
Exports—Imports—Futures
from wartime
to
"restore
4-2727
require
the
con¬
produc¬
require some arms,
rely upon others
to
time
A
small people devoted to their families and
tasks, thinking about the
site
from
This is the very oppo¬
American policy in the
of
past, which has led the fight for
the reduction of armaments."
them.
Signs continue to point at mid-,
to a high record of agri¬
cultural production in
1942, the
U.
S.
Department
of Agriculture
July 6. It was added that
extraordinary production already
has been achieved by the dairy,
poultry, and livestock industries,
said
on
are
expected by producers of most of
the food and feed crops.
getting
are
higher
than
summer
Farmers
prices
this
further
last.
The
Depart¬
said:'
but production costs are
usually heavy, particularly on
ures,
count of
higher wages.
payroll
will
total
$1,000,000,000 this
ac¬
The farm
than
more
v
un¬
Experi¬
enced farm labor is not easy to
get—especially
in
areas
where
year.
industries
war
drawing
are
"Farmers
have
off
war, if
of its
na¬
and
shortages for
devastation,
years,
to
build
duction, and, in the
to
that far greater volume of
move
are
"It
the vicar of the small church.
different
so
from
all
Ballard, station master and bell ringer, and the proud winner,
hour before his death, of the Beldon Cup for his beautiful
And our hearts go out. in
sympathy to the two families
who share the cruel loss of a
young girl who was married at) this
altar only two weeks ago.
The homes of many of us have been de¬
only
an
Miniver Rose.
stroyed and the lives of young and old have been taken.
There is
scarcely a household that hasn't been struck to the heart. And why?
Surely you must have asked yourselves this question. Why, in all
conscience, should these be the ones to suffer? Children, old people,
young girl at the height of her loveliness.
Why these? Arejhese
our soldiers?
Are these our fighters?
.Why should these be sacri¬
a
ficed?
I shall tell you
why.
Because this is not only
plain,
also," he added,
such movement is ut¬
any
terly impossible if the nations
or
important
any
group of them con¬
put impediments in the
attempt to corner markets
to
war,
for themselves,
vices
of
any
resort
or
sort
to
to
de¬
check
the
flow of goods and back it
up upon
its sources."
uniform, it is a war of the people—of all the people—and it must
be fought, not only on the
battlefield, but in the cities and in the vil¬
lages, in the factories and on the farms, in the home and in the heart
of every
man, woman and child who loves freedom!
buried our dead but we shall not
forget them.
Well, we have
Instead, they will in¬
spire
with
us
those who
an
unbreakable
after
come
us
ens
to strike us down!
are
the fighters!
determination to. free ourselves and
from the tyranny and the terror that threat¬
This is the peoples war!
It is our war! We
Fight it, then!
God defend the right."
a
spring pig crop of 62 mil¬
head, and plan a 43 million
fall crop.
The calf crop, estimated
at 32 million, also sets a record.
Slaughter:;of cattle, and calves has
Fight it with all that is in us!
In the earlier
Mr.
been
considerably larger to date
this year than last and the total
slaughter goal of 28 mil¬
head.
Total meat supply
beef, pork, lamb, poultry, should
biggest on record.
"Larger acreages of feed crops
be the
have
been
unusually
planted this year, but
good yields will be
needed
exceed
to
1941.
Plaza
(50th
&
Lexington)
night club shows
this
go
Feeders
production
meanwhile
in
have
isn't bad.
one
be
little smaller in 1942-
a
43 than in 1941-42.
may
A further in¬
in
production of feed grains
be needed next year to sup¬
crease
port the record numbers of live¬
stock
on
farms at that time."
the aid Americans
To And From Alaska
Strict
military control
is
required for
now
entering
under the first such order involv¬
in Associated
San Francisco
of
It
area.
Press
war
Defense
can
resources
greater and the
measure
in
money?
on
one
side
a
you
the
value
wish to
of
a
tank,
sun?
What
is
the
a
des¬
equation
between the planes sent to Russia
and those figures in the snow be¬
fore
Leningrad and Moscow?
"Americans
do
not
want
would
a
As
Bill
Barry, who do
a
graceful bit of ball¬
.
.
.
Ray Block writes about the man-about-town and his
"childhood sweethearts."
She was in her first child¬
.
.
the musician, "I listen."
About the Town—At the Barberry
Room, that designer, Walter Florell, adjusts the top piece of one of
his clients—Marlene Dietrich.
At El Chico's, waltzing star of
the silents, Mae Murray, shows she can
rumba, conga and samba for
.
.
.
...
full hour without
sitting down
once.
.
.
Tsk-tsk-tsk, such stamina.
.
once
he's
on
the verge
up a conversation/with
sergeant. "You know," says the sergeant, "civilians are asked to
pick up soldiers waiting for a ride. Well, I just picked up a civilianshe was nice too."
Milton Berle, who stars on the
Phillip Morris
Playhouse this Friday night in Charles Martin's radio
United
school
Blonde," will make
broadcast.
"I should be
hit
a
a
on
tour of Army camps right after the
the soldier
"After all, it isn't every comic who carries
baritone
a
voice,
a
genial personality,
line of six gorgeous blondes."
.
officia
States
Goldberg and Lester
Solomon will become partners in
Sutro Bros. & Co., 120
Broadway,
New
York
City, members of the
Stock
as
of
July 24th.
was
Miss
Nelson With J. P. Marto
(Special to The Financial Chronicle)
BOSTON, MASS.—Charles Pel-
Exchange
with
J.
P.
Devonshire
30 CENTRAL PARK
&
Marto
Street.
&
Co.,
Mr.
Ill
Nelson
A
most
Co., and in the past conducted
his
business in Boston.
own
SOUTH
Adjoining The Plaza
formerly with F. L. Dabney
was
a
unique restaurant in
beautiful location,
overlooking
Central Park to the north.
Serving
best
food,
'
skilfully
The defaulted railroad bond in¬
dex
of
Rust,
Pflugfelder,
61
Broadway,
Bampton
New
&
York
prepared.
for
Jan.
1, 1939, to date:
High—
40%; low—14%; July 15 price—
351/2.
;;;
.
»
Entertainment after 11 P.'M.
City, shows the following range
and
exchanges,
The Penthouse Club
ham Nelson has become associated
Defaulted RR Bond Index
York
Violetta Weems, she
show, has been chosen as the "Queen of the Mardi Gras" by the
Coney Island merchants.
relationship and
Sutro Bros. Co. To Admit
New
.
Tennessee in 1939, and now is in the current Havana-Madrid floor
interests.
Samuel S.
.
tour," he admits modestly.
a handsome smile, a good
repertoire—and, ofy yes,
a smart
Com¬
return of bona
fide
Alaska residents to their
homes,
close domestic
.
adaption, "My
Favorite
accepted
permits;
the
.
announcec
be
other leading national
that
.
were
...
Alaska
set
its guns and ammunition, and on
the
other side
an
appraisal of
those who died in it under
and
reasons,
0
balance owed
Do
Defense
government, definitely arranged
legitimate employment, business
"Do you wish an
accounting of
given and received on
dollars, and set off against each
of
30 that:
DeWitt, head
Command,
granting
stated
advices from
Army
reasons
business
less.
benefits
4th
was
June
on
Western
the
mand,
for
been
civilian
any
leaving the territory,
or
ing the Pacific
they receive, because Ameri¬
has
all
has been established by the
Army,
effective July 11.
A military pass
aid
upon them
But, he asked:
over
civilian travel to and from Alaska
six
are
Belmont
week.
a
doubt will be greater than the
no
in the
last
At least it has speed.
If your reporter walks around the dance floor
of collapse. . . . Songwriter Bob Sour strikes
Army Controls Travel
show
hood; he, in his second.
Meyer Davis tries to straighten out an
unhappy marriage in which his fiddle player was involved. "Are you
on speaking terms with
your wife?" asked Meyer.
"Well," replied
a
that
give in this
Glass Hat
new
.
in stitches.
—may
its
orchestras-^Bobby Parks and Joe Pafumy—who does the Latin numbers.).
FROM THE MAILBAG—Ex-customer's
man, Russell Swarm,; who
found a lot more money in
having them come to you "Uptown
After 3" then downtown before
3, opens in New York at the Loew's
State the week of July 23rd.
His crazy kinds of magic will put you
wife who
of
The
.
dancing. The hit of the current show is still the ever popular
waiters who, billed as the Belmont
Balladeers, get together in front
of two microphones and
sing spirituals with a zest and rhythm that
brings the room down.
Dance music comes from two
over
dipping heavily into carry¬
stocks, and the total supply
feed—carryover plus new crops
.
.
unveiled
Johnson, late of "Banjo Eyes," is the m. c^and sings in a pleasant
baritone.
Christine Forsythe tap dances
acceptably though her fame
rests on her
towering proportions.
She's six feet tall.
Then/there
been
portion of his ad¬
Acheson observed
And
1
NEW YORK NIGIIT LIFE.
lion
Lieut. Gen. J. L.
dress
of soldiers
a war
in
record
by the standards
determined to achieve.
is
"that
beyond,
years
going about their usual
at all, as something far removed
simplicity it has pathos without
James
may
reported
as
is
war
,
labor/'
because
It helps to answer why
previous wars.
The scene is" the
church on a beautiful
morning after a night of horror. Soft summer
clouds can be seen through the torn roof.
"We, in this quiet corner
of England, have suffered the loss of friends
very dear to us," says
the vicar.
"Some—close to this church.
George West—choir boy.
this
year
Yet
mawkishness; heroism without heroics. What made me see it again
was not its
story, which is far better than the book from which it
was taken, but to hear
again the simple sermon preached by Henry
Wilcoxon
Record Farm Production
Tq the
I let it alone.
But "Mrs. Miniver" is more than just
anqther
ordinary film. It is a moving and compelling recital of events oc¬
curring in England that may some day occur here.
Its characters
are the small every
day people who know little of wars and how
they are fought,. They are the kind .of a people you and I know best.
for them?
and rebuild all the means of
pro¬
ert
Dlgby
clothe
house millions who have suffered
other to
SUGAR
there will
war
unprecedented need for the
drain
LAMBORN & CO.
and other
further
clear that after the
be
any
those
and
commerce
remarks, Mr.
Acheson, according to the Asso¬
ciated Press, pointed out that it is
tinue
Thursday.
treatment
barriers.'"
we
More next
ends
armament
we
wish
we
allies
lion
goods required
better.
tion? Or if
do
to
of
our
need
tion, employment, and the ex¬
change and consumption of goods,
and they provide for 'the elimina¬
or
59 (now about 69) raise stop
to 66.
Half profits at 71 or
wish
we
the
-
aest of my recollection this is the first time I returned to see a
movie
unless a few years had intervened.
Ordinarily I see a picture once,
write about it, and then forget it.
If I can't understand it the first
room
(now about 50) raise stop
And Union Carbide at
do
when
■
picture, "Mrs. Miniver" again.
is the dance team of Castaine &
44^.
better.
But
us.
MGM's
saw
ernment
to
profits 52
to
■'a
Last week I
for 1942 will be close to the Gov¬
43
Half
tion of Lend-Lease from
new movies
"They provide for united action
by all nations to expand produc¬
movement
30
at
long as the need exists,"
said, "this, broadly, is the func¬
"Farm income this year to date
chart
in
course
the reduction of tariffs
(Continued from page 173)
"So
he
has been running above 1941 fig¬
policy which, if faith¬
fully followed and supported by
in
To the investor:
And how about replacement in
blue
a
They do not
now.
Utopia.
tion
Says
'be¬
money,
man can
"They do not lay down
mon
want
kind of the planes, tanks and guns
sent to allies on all fronts?
ment
print for the future.
ise
not
and that similar achievements
mutual
'The
other
do
the most destructive.'"
not end any Satur¬
grains at less than full parity sible to hope.
1
prices but the Senate on May 20
"They
provide • for
universal
voted permission for the sale of
participation by all nations in the
125,000,000
bushels
of
surplus building of the new order — 'no
grain for feeding at 85% of parity. exclusive arrangements, no ex¬
?♦
Technically the Agriculture De¬ cluded peoples among those who
partment had been without funds wish to work with us to the com¬
fiscal year.
They
cause, of all settlements, we know
that it is the most impossible and
in
political organization to maintain
When
the
big¬
down
opportunity,
may
accounting," he said, "or
much.
to think about it very
"Neither do they want money—
'more gold buried at Fort Knox.'
which you can use your powers, a
fundamental
the
which
quarter-century.
every
of economic
on
bring
lives and your houses
ears
in
and his
man
not
of
even
tinuation
world
a
the other side of the
on
for six weeks
failure to agree
of
University
say:
want
has been deadlocked in conference
over
Institute
the
at
half mad
some
write into
the Senate's continuing resolution
a ban on such sales.
': ;
The original appropriation bill
to
on
"You
enacted.
permit the sale of surplus grains
at sub-parity prices this month,
when it rejected by a 185 to 59
Lend-
Virginia at Charlottesville, Va.,
went
talent.
is
before the
speaking
priation
it
for
gold or weapons or other goods,
but "you want a chance to live
fully and in peace." Mr. Acheson,
chance
when
what Ameri¬
to
return
aid to their Allies, Dean
Acheson, Assistant Secretary of
State, said on July 6 that it is not
will be deducted from the appro¬
In passing the measure,
the House yielded temporarily to
in
Lease
Department
bill
respect
want
cans
terial
history."
sort
Peace Is
181
Telephone PLaza 3-6910
182
THE COMMERCIAL & FINANCIAL
Calendar of New Security
Flotations;
Arthur
tees:
Blaine
Following is
list of issues whose registration state-
a
These issues
filed less than twenty days ago.
ments were
grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
are
filing except in the case of the secur¬
foreign public authorities which normally
is twenty days after
ities of certain
days.
become effecttve in seven
A.
C.
and
holders of
Work,
of
owner
Van
otherwise specified, are as of 4:30
rule 930(b).
Offerings will rarely be made before the day follow¬
These dates, unless
P.M. Eastern Standard Time as per
G.
Certain
Dusen.
stock, including James
100,000
J.
Alfred
shares,
Miranda, Jr., owner of 16,667 shares, Ignacio J. Miranda, owner of 16,667 shares and
F. William Zelcer, owner of 16,666 shares,
total
or
a
of
stock
of
shares or about-27%
150,000
outstanding, have deposited their
voting
trust.
Pennsylvania
Co. for Insurances on Lives and Granting
stock
under
Annuities,
Phila.,
for
depository
is
Pa.,
trustees':; 7 77/7' ;Y;777'.
^
James
Ballantine,
A.
Brewster
CHRONICLE
Y'Y'V1 YY
-,!i7,Y",>7
vot¬
ing trust agreement terminates on the 20th
day of November, 1944.
Due to censorship
probably no specific information is con¬
tained in registration statement Y its express terms, the
Offering-—By
Registration Statement No. 2-5018. Form
ing.
f-1.
effective 5:30 p.m. EWT on
Registration
bonds, the serial notes and common stock
will be used to redeem at $120 per share
or
otherwise retire on or before Oct. 1,
THURSDAY, JULY 16
EQUIPMENT FINANCE CORPORATION
a
Equipment Finance Corporation has filed
registration statement with the SEC for
value
5,000 shares of common stock, no par
Address—Chicago, 111.
1942, an unspecified number of shares of
7%
preferred stock of the company and
for
Underwriting—No underwriter named
Offering—Issued prior to registration for
property 2,007 shares at $100 per
share, and 2,993 shares are to be publicly
offered at $100 per share
Proceeds—For trucks, land, building ad¬
Form
Registration Statement No. 2-5023. Form
s-2.
Y Y77.Y7Y; '.viYyYy,
(6-27-42)
SECURITIES
NATIONAL
RESEARCH
&
tion
filed
SEC
for
statement with
of an aggregate
registration
a
shares
1,211,500
Address—120
New York
Broadway,
Business—Investment
trust
fund,
City
open-
end, diversified management type ;
Underwriting—Name of trust is National
Series.
National Securities
&
Securities
Research
Corporation is sponsor
77
Offering—At market
investment
Proceeds—For
Registration Statement No. 2-5022. Form
C-l.
3%%
800
Jan.
'yYY
.Y.:Y.7
(6-27-42)
Central
Maine
Power
CO.
Y,Y
filed
Co.
a
and
mortgage
general
Series
bonds,
owns
natural
of
gas.
than
The
is not an operating company
Underwriting—Company has entered into
company
agreement with The First Boston Corp,
Merrill
Lynch,
Pierce,
Fenner &
Beane, as dealer managers who have aided
and are aiding in preparing the exchange
offer and plan of recapitalization to form
and
manage a
group of security dealers
an
and
shall
which
the
the
include
dealer
managers,
of obtaining agreement to
purpose
proposed
company's
the
under
offer
is offering to the
preferred stock (other than
Cities Service Co.) the opportunity to ex¬
Offering—Company
regis¬
1972; $5,000,000 tenmaturing serially on July
1 from 1943 to 1952, and 261,910 shares of
common stock, par value $10 per share.
Address—9 Green Street,. Augusta, Maine
maturing July 1,
M,
Jersey
Place,
the United States other
distribution
retail
exchange
tration statement With SEC for $14,500,000
first
Y-";Y>Y Y:-:Y
in
exchange
SATURDAY, JULY 18
MAINE POWER
due
debentures,
fund
Exchange
securities of
subsidiary and other companies together
primarily
engaged
in
substantially
all
phases of the petroleum and natural gas
for
CENTRAL
sinking
1, 1962
Address—One
businesses
offering price of $7,827,380
year serial notes,
in
automobile and other forms oi
insurance
777777 7Y. Y YYY-YyYYYY
Wentworth
holders
its
of
the
lor
thereon,
arrears
with all
3V2%
share?,
preferred
their
change
dividend
debentures now registered of
sinking fund
aggregate principal amount equal to the
an
shares and
accumulated
unpaid arrears
thereon to
Jan. 1, 1942.
The basis of exchange per
shareof
preferred stock,
showing face
of
value
par
their
underwriter; Don B.
be an underwriter -Y'Y'
preferred
of
be
to
the
share
per
Proceeds
capital
stock registered
public at a price
common
offered
$22
77 7
will
surplus
and
Y
-
used
be
377- Y7Y77Y
.7- ;
'
to
additions
for
-
Registration Statement No. 2-4992. Form
A-l
(4-30-42 San Francisco) YY;
effective
Registration
June 6,
1
ESWT
p.m.
Florida
of
orrermg—The securlties registered are to be sold by company
under the
competitive bidding Rule U-50
of the SEC's Public Utility Holding Com-
CORP.,
MINING
LTD.
,
,
Canadian
Camilla
Corp.,
Mining
Ltd.
registration statement with the SEC
a
covering 500,000 shares of capital stock, par
■ per
share 7 ' 77
Address—Toronto, Ont.
Business—Mining and milling
Underwriting—Enyart Van Camp & Co.,
value $1
,
,
,
underwriter
Offering—Offering price is 25 cents per
Chicago,
share, U. S. funds
development, exploration,
milling
plant
and
working
Purpose—For
equipment,
Names of - underwriters and
public; will be supplied by postamendment to registration state¬
ment
-■
'Y 7: .7 7".,"'7Y [>" ,<-■ ■ 7 7.Y YY; 7.
.■
Proceeds
will
be 7 applied
as
follows
853,170,000 to redeem at 102 Mi, the $52,000,000 of company's First Mortgage 5s ol
1954; $15,693,370 to redeem at $110 pel
jhare,
the
142,667
shares of company'*
effective
tered
1942
to
ELECTRIC CORP.
Electric Corp.
regit
$28,000,000
serial
debentures,
du«
1951. and $92,000,000 sinking fund
be
to
are
of
account
public
jat $4 per
commis|sion is 80
shares
offered
the
are
un¬
the publitf.
to
the
company;
re¬
maining 16,560 shares registered are to
be purchased by
the underwriters, under
purchase option, from certairl: stockholders,
'• Y:
^nd will be publicly offered
will be
Proceeds
deem
used to
purchase
re¬
or
the outstanding
all
36,000 shares of 7
6%
cumulative preferred
stock,
$5
par.
value, and for other corporate purposes
YYY
Registration Statement No. 2-4990. Form
S-2.
(4-23-42);.;.77' ''7.7',,7 Y" YYY'>"'Y'''';' Y^Y''
Amendment filed
-
June 22,
effective date
shares
HAMILTON
WATCII•CO.YYY;'YY'Yv'• '--77
registration
statement with SEC for 39,382 shares 4%%
cumulative preferred stock, $100 par
Watch
Y Hamilton
Business
sells
23
—
various
1942, to defer
'
and
making
a
and
wrist
watches
wrist
.7 Underwriting
for
foi
watches
7
"
women
and Offering—Company li
conditional offer to holders of it*
32,054 shares of outstanding 6% preferred
stock of the privilege of exchanging such
stock
for
4Va%
preferred stock on basis of one share
preferred stock, plus $1.50 (equal
of
33,054
the
of
39,382
shares
ol
41/2%
current
dividend
payable
share outstanding
plus an unstateo
amount (difference between the public of¬
fering price of one share 4%% preferred
stock and $105, the redemption
price ol
the 6%
preferred), for each share of out¬
standing 6%
preferred stock.
Exchange
offer expires Jan. 22, 1942.Any shares oi
4j/2 %
preferred not issued under the ex¬
change offer; "plus thA 6,328 shares not
reserved for such exchange offer, will bt
offered
to
the public,
at a price to bt
supplied by amendment.
Harriman Riplej
6 Co., Inc., Philadelphia, is named prin¬
cipal underwriter; other underwriters will
be supplied by amendment.
to
March
1,
quarterly
1942, on one
stock),
preferred
will
Proceeds
1,
used
be
to
redeem,
on
1942, at $105 per share, all out6% preferred stock; balance for
expenditures in connection with construc¬
tion and equipment of plant additions
Registration Statement No. 2-4926. Forn
S2
stock. $1 par
common
'
St., Chicago, 111. 777
function of company 7 Y
to enterprises whose debt
structures
are
being ad-
Address—33 N. La Salle
<
Business—Primary
is to
loan
and/or
money
capital
Y7'.y;YvY:3Y7-: Justed
Pa.
Company
manufactures v ana
models of high grade (17 to
pocket
jewel)
men
filed
Co.
Address—Lancaster,
,
A
&
the
93,000
.
standing
Gas
and
the
to
underwriting
share.
preferred
Registration Statement No. 2-5013. Form
S-3. (6-15-42)
Amendment filed July 2, 1942, to defer
effective date
1 "
s
,
GAS
offered
the
per
stock, no par.- Further de¬ 7 Registration statement withdrawn July' Y'Y
tails
to
be - supplied
by
post-effectiv» li, 1942
7"YYYY'7'YYYYv^rY;Y'"7 :Y'YYY>fY.Y^YV'Y
amendment
7 77 Y 7''7\ 77-. 7 - my ? 7'"V 7'Y77
Y Y
,7. Registration Statement No. 2-4845.
Form INTERIM FINANCE CORP.
interim
Finance
Corp. filed a registra- 77',
A2. ' 19-17-41) -.7777 ,vYYY':Y7:YYy7YY
tion
statement with
the SEC for 39,912
Amendment filed June 26, 1942, to defer
shares class A stock, $25 par; and 25,232
effective date
'
$7
March
Columbia
be
for
to
price
capital
COLUMBIA
ana
Act.
pany
will
share;
cents
issued
/'
/
Underwriting
6%
CANADIAN
CAMILLA
filed
on
1942.
territory along the
(with exception ol
and other portion!
the
Florida
Jacksonville area),
the
fire,
will
Empire Gas & Fuel Co. has filed a reg¬
statement with SEC for $21,534,-
Business—Company
National Securities & Research Corpora¬
Calif.
: :
the underwriting
Francisco,
Business—Engaged
Offering—The
City,. New Jersey
CORPORATION
Address—San
may
FUEL
GAS &
a
Underwriting—Paul H. Watson Is named
SUNDAY, JULY 19
EMPIRE
CO.
filed
Co.
principal
istration
7 7; ■•7;7',,>'7;"
INSURANCE
Insurance
registration statement with the SEC for
29,659 shares common stock, $10 par value
,
and garaging facil¬
improvements
ities
-
UNION
Union
California
of
cash and
ditions,
;;
for
business.
Registration Statement No. 2-5024.
A-2. (6-29-42)
" 1
pany's
1942
CALIFORNIA
purchase
and
construction of
the carrying out of the com¬
the
facilities
Business—Short term financing etc.
July 13,
YY^Y';,YY.7Y'r''YY7-'7Yr Y:
7 ■:
(6-24-42)
of
coast
east
of
most
serving
Thursday, July 16, 1942
or reorganized by its wholly-owned,
subsidiary, H. M. Preston & Co. A seconds
ary function is to loan money, with funds
not
used in its primary function, to pro¬
'"interim" or
Intermediate financing 77:
enterprises until the financial positions
of the. borrower or a change in general
capital markets open avenues for longer^
term borrowing from customary sources
Underwriter—H. M. Preston & Co., Chi J
cago,
111., is the sole underwriter.
The
underwriting commission is $8 per unit
•
Offering—The class A stock is to be
sold in units of 4 shares, at a price of
$110 per unit. With at least the first 900
units,
there will be included with each
unit 4 shares of common stock; thereafter !;YY
vide
to
each
the right
reserves
company
number of
class
of
to
reduce
the
''m
shares to be included it»
common
unit
stock
A
Proceeds will be used for working capital
(
Registration Statement No. 2-4968. Form
(3-18-42)
A-l.
Amendment filed July 13, 1942, to defer
7
effective date
LONE STAR STEEL
Lone
Star
statement
CO.
Steel
filed
Co.
SEC
with
for
registration
$500,000
5%
debentures/due 1948; 1,000 warrents to
purchase common stock; and 75,000 shares
no par common stock
7 Address—Dallas, Texas
Business—Company is engaged in the
manufacture of pig iron and steel
7
Underwriting — No 7 underwriters
are
7
7
1
(12-30-41)
Amendment
to
filed
defer effective date
named in
registration statement
,7,
-
Offering—The debentures will be offered
July 3, 1942
to, the
100;
public at
$500
each
'r
principal
MANUFACTURING CO.
amount of the debentures will carry one
debentures due 1961
■7 Hastings
Manufacturing Co. registered
warrant entitling the holder to purchase
Business—Company is an operating pub¬
Address—61 Broadway, N. Y. C. 7
with
SEC
140,400 shares common stock. 25 shares of common stock of
lic utility and engages in the electric, gas
company,
Business—Public
utility
holding
eom
$2 par value
■;
,
\
.
at $10 per share.. Of the 75,000 shares •;
and
water
Y
business, entirely,, within the amount of debentures to be received by
pany
7Y-'7yY. ,";.7Y'--v"'
77VY;. 'YYYY'.Y 7- Address—Hastings, Mich., Yn-'YYYyYYYY- common stock
registered, 25,000 shares are
State' of Maine
'-77:77
7.7,77':
': each class of preferred stockholder fol¬
Business—Manufactures and sells pistot
Offering—Both issues will be publiclj
reserved for issuance upon exercise of the .17
Underwriting—1The bonds and the notes lows: 8% cumulative $176.66; 7% cumula¬ offered at
prices to filed by amendment
rings and expanders
Y;YY7:'y*:Y:Yv7Y
warrants, and 50,000 shares will be offered
will be sold under the competitive bidding
tive $167.08; 6%% cumulative $162.29, and
Proceeds—To redeem $50,000,000 Deb 5s
Underwriters—Schroder," Rockefeller
A
to the public at $10 per share
* .77
rule of the Commission.
Names of under¬
6% cumulative $157.50
yy'/Y-v.Y 'Y
1952; $4,750,700 Deb. 5s, due April 15
Co.,
Inc.,
are
principal
underwriters
Proceeds will be used for working capital
writers and amounts and offering price to
Proceeds—The debentures are to be of¬
Other underwriters are
Smith, Hague A
1952; $50,000,000 Deb. 6s, 1961; to
purpurposes
-r
' 77 777 7777 77,7. Y„7;- 777,7'yYY7
fered for exchange to the preferred stock¬
public will be supplied by amendment
chase
$3,750,000
4%
guaranteed
seria:
Co.
and
Carlton
M.
Higbie Corp., De¬ 7
Registration Statement No. 2-4997. Form
Offering—Public offering price of the holders of the company.
notes due 1942-46 of Ohio Fuel Gas Co.
troit, Mich. 7:'7Yy77.7;y ■■■Y'v.YY ' Y7
7 Y.
S-2. J 5-8-42) 7: *: ; 7 '7.7 YvY.YY Y" 7 ;7YYYY' YYY
bonds and notes will be supplied by amend¬
Registration Statement No. 2-5025. Form a
subsidiary,
and
$3,750,000 guaranteed
Offering—23,100 shares are unissued and
Registration
Statement
effective
ment.
5:30
The 261,910 shares of common are
A-2. (6-30-42)
Y,;;;" 7 Y. 77,7 \ ■; yYY YYYYY serial notes of United Fuel Gas Co., • are to be offered to the public for th«
77,
p.m. EWT on June 17, 1942
first to be offered to the holders of the
Y"
account of the company; remaining 117,306
subsidiary, from the holders thereof: and
SUNDAY, JULY 26
company's outstanding common stock and
to make a $3,402,090 capital contributor
shares are outstanding and are to be sole
LUKENS STEEL CO. '
6% preferred stock for subscription at $10 ELLICOTT DRUG CO.
to Cinn..
Newport 81 Covington Ry Co. tc
io
777 'YYYY
public for account of certain selling
Lukens
Steel
Co.
filed
a
registration
per
share in accordance with their pre¬
stockholders • Yy-'.YyvYYY ; 7Y7;7Y 7/77,: ^7. statement
Ellicott
with
Drug Co7 filed
a
registration enable that Company to redeem its out¬
the
SEC
for
$2,200,000
emptive rights.
New England Public Ser¬ statement with, the SEC for $350,000 6%
standing $3,303,000 1st & Ref. 6s, 1947 •
Proposed offering as
amended: 23,100 4%%. sinking fund debentures due 1952 ,Y7;77'
vice Co. has subscribed for and agreed to
shares
by
company, < 105,756
shares bj
Registration Statement No. 2-4736. Foro
debentures, due June 30, 1957.
Y
Address—Coatesville, Pa.
»
take the 261,910 shares,
less any shares
A-2.
(4-10-41)
Y
'tY
certain stockholders
Address—120 Cherry Street, Buffalo, New
Business—Steel manufacturer
as may
be subscribed for by stockholders, York
Amendment filed June 30, 1942, to defer
yY-'Y; YYY
7 Public offering price is $9.50 per shart
,:YY • .7; 7 77737:/ "7; 7
Proceeds—Payment 6f bank loan
and to pay therefor in cash at $10 per
7 Proceeds to company
will be used foi
Business — Company
is a cooperative effective date
Registration Statement No. 2-5003. Form
share provided
the proposed merger be¬ wholesale
general corporate purposes, including ourA-2. ,'(5-29-42.) '
drug
company,
selling
to its
77.-7 '7'Y 7 Y 7,
\.
EASTERN COOPERATIVE WHOLESALE,
comes effective
chase of new equipment and for working
members
In an
only,
all of
whom
are
retail
amendment filed by the Lukens
7
INC.
•
■
Proceeds—Statement says that prior to
capital
7Y::7;7:,77Y;,7'/(7'.:.:-7. 77Y75,'Y
Steel Co. covering the registration of
druggists. YY- Y'Y,'Y'Y;Y-r ";Y 77, 7
$2, YY
Eastern Cooperative Wholesale, Inc., filed
the issue of the securities now registered,
Proceeds
Registration Statement No. 2-4890. Form
$250,000 of the debentures
200,000 4%% sinking fund debentures the
a registration statement with the SEC for
Cumberland County Power & Light Co., a
A2. (11-19-41 Cleveland)
will
be
underwriters and the amounts to be pur¬
presently issued.
Approximately
$150,000 :4%
registered debenture bonds
public utility incorporated in Maine
in
Registration statement withdrawn July chased' are given. as follows:
$120,000 of this amount will be issued to
Y Y '' -"--3 Y-YY
maturing July 1 of each year from 1944
1909, will be merged into the company and
10,
1942
Name
replace the outstanding 6% preferred stock
Amount
to 1956,
Central
Maine
will
inclusive (exclusive of 1950). No
thereupon
acquire, which is
E. H. Rollins «fe Sons,
being eliminated.
Approximately more than
$874,000
HONOLULU RAPID TRANSIT CO., LTD.
$30,000 principal amount of
pursuant to an agreement of merger, the
Allen & Co——
$48,000 additional will be issued to retire
"7 Honolulu
600,000
said bonds shall mature in any one year
Rapid Transit Co., Ltd., has
business and all the rights, powers, etc., of
buying privilege deposits with the company
Pistell, Wright & Co., Ltd'.YY
186,000
filed
a
Address—135 Kent Ave., Brooklyn, N. Y.
registration statement with the
Cumberland.
After
the
merger has
be¬ The
Stroud & Co.,' Inc
balance, approximately $78,500 after
150,000
SEC for 75,000 shares of 6%
cumulative
Business—Wholesale dealer in groceries
come
effective, the business of the com¬
expenses,
will become additional working
Graham,
Parsons
&
Co.
100,000
convertible
preferred stock, $10 par; and
allied
products,
including,
among
other
pany will include also the business, fran¬
capital
''YyyY:--;;,' Yv..;Y;;Y.;
Y,Y::Y, related
" ,' 100,000
75,000
shares - common
stock, $10 par, Biddle, Whelen & Co
chises and properties of Cumberland, the
activities, warehousing and pack¬
Vallance & Co.,
Offering—The new debentures will be
100,000
Y
latter reserved for issuance on conversion
aging ::77V7,Y''yy7:YY7 y 77',y- 37.3:Y;V77Y;:
separate
existence
of
which
will
have
priced at 100 and accrued interest
of the preferred stock
Y7 YY Boenning & Co.—50,000 7
ceased
:■; 7
:i 7"Y,7-7.., Y: '77:777, 77' 7Y7-17',
Underwriting—No underwriter named
Bond & Goodwin, Inc._
Registration Statement No. 2-5026. Form
- :
40,000
Address—1140
Alspai
St.,
Honolulu,
Ha¬
Net proceeds from the financing in ac¬
Offering—The securities are being sold
A-2. (7-7-42)
777 7"V
y^YYYY
Offering price to the public will be 100
waii
Y';YY7Y7"77 777:"' ■ Y77,<.,:7<c 7
cordance
with
the merger plan
by the Cooperative directly to its stock¬
recently
.' Business—Company
is a public utility plus accrued interest from June 1, 1942.
holders
and
friends
interested
in
the
filed
HASTINGS
.
.
,
•
—
,
*
.
with
the
will be Used
commission
as
follows:
Y-'.77 - 77" Y'Y
YY ;Y;y
proceeds of the series M bonds will
be used to pay principal and premium in
the redemption at 105%
on Oct. 1, 1942,
of $1,494,000 face amount of first mort¬
gage, 4%
series, due 1960, of Cumberland
Powert $1,538,060; to pay principal and
premium in the redemption at 105%% on
a
date in
1942
face
000
3%%
to be
amount
series,
the
facilities
Net
purchase
of
Cumberland
stock
and premium
be fixed
to
ber
and
construction
of
$2,650,000.
proceeds of the serial notes and the
common
of
in
shares
will
be
used
to
pay
par
in the redemption on a date
1942 of an unspecifed num¬
of 6% preferred stock and
unspecified number of shares of 5y2%
preferred stock of Cumberland County at
130% and 110%, respectively, all of which
shares are to be called for redemption by
an
Cumberland
County
twenty
present
below
list
a
issues
of
registration statements were filed
days or more ago, but whose
dates
offering
mined
have
been
not
to
unknown
are
or
deter¬
us.
prior
to the proposed
and converted under the agreement
of merger into an obligation of the com¬
Bellanca
tion
filed
the
SEC
with
shares
common
details
as
a
registra¬
for
57,412
stock, $1 par.
Further
to the financing, including de¬
distribution, application of pro¬
ceeds, underwriters, if any, etc., are to be
supplied
by
amendment
to
registration
of
tails
statement.
filed
by
SEC withheld much of material
presumably
in
con¬
formity with military censorship policy
company,
Registration Statement No. 2-4975.
S-2
Form
(3-30-42)
statement
withdrawn
will
be
supplied by amendment.
Additional net proceeds from the sale of
serial notes and common
to
stock
will be used
acquire 300 shares of the common stock
$6,000 face amount of 5% debentures
and
1, 1936, due Aug. 1, 1956, of Nepsco
Services. Inc., and 10 shares of common of
of Aug.
Corp. $9,100 and
acquire all of the 650 outstanding shares
the no par capital stock of New England
Nepsco Appliance Finance
to
of
Pole
& Treating
Balance of net
Co. $110,000.
-
-
proceeds of the series M
loans
working
CORPORA¬
TION
Voting trustees of Brewster Aeronautical
filed a registration statement with
Corp.
SEC
566,551
$1
a
for
voting
trust
tion
shares of capital stock,
date
New
to
be
par
Business
and
'
—
principal
mature
any
in
amount which
shall
of the other years.
1942, to
of
trust
agreement be¬
tween certain stockholders of Brewster and
voting trustees executed as
1942, expiring Nov, 20, 1944.
of
share, on the basis of three shares of
preferred stock for each five shares 0/
common
stock, to be evidenced by trans¬
ferable
warrants
which
expire May
29
1942.
Such of the preferred stock not
subscribed to on or before May 29, 1942,
or
not sold on or before June 30,
1942.
will be retained by the company, subject
to
issue
and sale, either at private
or
May
20,
bank
outstanding
loans,
aggregating
stock
$1,Form
SEC
LIGHT
A
CO.
and
cumulative
97,200
registered
with
SEC
Mortgage
bonds, due Oct. 1, 1971; $10,000,000 Sink¬
ing
and
Power
Debentures,
140.000
the
on
plied by
<Ss
Light Co.
$45,000,000
First
Fund
shares
Oct.
due
Cumulative
1,
preferred stock, will be
E.
common
stock,
company
consists
and
subsidiaries
its
are
manufacture
the
of
products
falling
which
business in
Business—Present
into
three
Business—During
1940,
30,
of
the
Ave.,
sup¬
sale,
been
&
Llaht
subsidiary
(Electric
of
Bond
American
&
Share
two
operations of
years
ended Sept.
company consisted
sale of Rex rail¬
lights and the manufacture and
an
Since
on
experimental basis, of muni¬
that date, the company has
in the munitions
primarily engaged
System)
Is an operating public utility en¬
gaged principally In generating, transmit¬
ting, distributing and selling electri« en¬
(also manufacture and sale of
gas),
Underwriters—Nelson
and
main
engaged
sale
of
groups,
namely, White papers, chestnut corrugating
and other paperboards, and wood and bark
■>
for
tanning 7 ;
Proceeds—To
acquire
all outstanding
Paper Co.
7
Y
Underwriting—This offering is not being
of
Escanaba
underwritten
Y.'", 77"." Y;
!
Offering—The
company
offers
to
all
holders of first preferred stock, irrespec¬
tive
Angeles.
of
of
the
series,
and
all holders of
common
ferred
the
company's $5.50
cumulative pre¬
stock, Series B, with warrants for
purchase of
1937)
&
Co.,
common
attached,
company's
and
common
stock
(Series
4Va shares of
stock,
without
of
the
par
value, for each share of Escanaba preferred
stock,
and
common
Douglass
Cal., and Barrett Herrick &
Co., Inc.. New York, each have agreed to
underwrite 46,500 shares of the common
stock registered, or a total of 93,000 shares
Offering—-The 109.560 shares registered
Los
Y.
the
stock of Escanaba Paper Co. one-half share
Pa.
manufacture and
road signal
tions.
Second
without
77 Y./YY
-.;77
.
Address—Croydon,
business
Business—This
Voting trus¬ ergy
value
Miami
amendment
S.
shares
1950:
Preferred
Interest rates on the
Debentures, and the dividend
Par.
Address—25
statement
war¬
stock, Series B
preferred
shares
'.-v,-.77Y777
7-'>
Address—Chillicothe, Ohio
value
par
i
tion
,
a
8,000
(Series of 1937) attached; 8,000
$5.50
,
MANUFACTURING CO.
Co. filed registra¬
with the SEC for 109,560
of common stock, of 25 cents par
filed
the
for the purchase of common stock
(Series of 1937) attached to certificates for
stock
(3-30-42)
with
rants
extracts
650,000
Registration statement No. 2-4973.
S-2
Corporation
registration
shares of
$5.50 cumulative preferred stock, Series B,
with warrants for the purchase of common
per
public sale, at not less than $10 per share
Proceeds will be applied to reduction of
"
CORPORATION
MEAD
Mead
Hunter Manufacturing
and
airplanes
Offering—The preferred stock is offered
company's common stockholders of rec¬
April 30, 1942, for subscription at $10
ord
HUNTER
POWER
Fla.
Manufacturer
to
THE
statement
defer
date
Bonds
>
Voting
one
face
filed June 29,
Amendment
Power
—
on
maximum
value
parts
Proceeds
specified
$100
voting trustees care
Ballantine, 31 Nassau Street,
York
capital
of each bond
$50,000
is
maximum
principal
amount
which shall mature in 1944 and $30,000 is
rate
A.
certain
repay
statement, states that bonds maturing
exclusive of 1950 and maturity
Stock,
share
Arthur
to
to
1944-1956
for
certificates
Address—Address of
of
also
(5-27-42)
Florida
the
and
Y 7 7;Y77'7Y Y 7/'. Y-'/.'Y Y
Eastern Cooperative Wholesale, Inc., in
an amendment filed July
1 to its registra¬
S-2.
FLORIDA
AERONAUTICAL
used
reduce certain
accounts payable now outstanding for cur¬
rent merchandise, the balance to be used
private
engaged in providing urban transportation
service to the city of Honolulu, rendered
by trolley coaches and gasoline buses
Underwriting—None
YY--.7YY
YY
July
1942
BREWSTER
100.
Proceeds—Will be
effective
Registration
10,
to
sale
No commission will
anyone
in conjunction with
77Y7;
--77 VY
at
Registration Statement No. 2-5002. Form
Aircraft Corp.
statement
pany
tion
paid
such
for
AIRCRAFT CORP.
BELLANCA
merger
to deposit the redemption price there¬
of in trust for the holders of such shares.
The amount to be utilized in such redemp¬
be
Inter¬
broker
the
underwriter, dealer,
any
salesman,
or
bonds,
mortgage
1966
County $9*784,348 and to pay bank loans
made by the company which were incurred
for
We
whose
'
without
movement
position of
UNDETERMINED
announced of $9,275,-
first
due
cooperative
OF OFFERING
DATES
Net
share
case
of
Escanaba
with
thereon
rately
all
share
the
notes
the company's
value, for each
stock,
paid
or
in
each
payable
period
of the offer.
that 24,000 shares of the
stock registered
offered,
of
par
common
dividends
during
Statement
common
l/10th
stock, without
but
are
will not be
reserved
for
sepa¬
issu-
■
®
THE COMMERCIAL & FINANCIAL CHRONICLE
Number ! 4090
Volume 156
ance solely in
satisfaction of the warrants
'for-the purchase of common stock ['*W.
•
Mo.
'
Registration Statement No. 2-5019. Form
'A-2. (6-25-42)~ !* • /
['7 [/; /''< ■
5 '•
,
V
j
Sonoco Products Company filed as regis¬
SONOCO PRODUCTS
;
,j
tration
COMPANY
the
with
statement
SEC
for
$1,-
1000,000 serial debentures, $1,000 denomina-
'
j tions," maturing
.
"
i$30,000
serially,
amounts jof
in
•
1, 1943, and on first day
July thereafter until and including
'.July 1, 1966; the remaining $280,000 majturing July 1, 1967.
Debentures of July
';i, 1943, will bear interest of 1.5%''and -of
(July 1, .1944, 1.75%, with, interest rate inj creasing fractionally on succeeding ma¬
turities and amounting to 4.25% on. July
i 1,-1967, maturity
•; ■■/>?[ f
Address—Hartsville, S. C,-'.1;,
j
Business—Company is
engaged in the
manufacture and sale of paperboard, tissue
[paper, paper cones and tubes and other
paper
products, as well as in the manu¬
facture and sale of-impregnated and special
tubes for the- electrical and sallied trades
July
on
of each
.
.
»
[
'
Underwriting—The names of the under¬
-
writers* ahd
r*
Inc., Columbia, S. C.;
Greenvile,
C.,: and A. M. Law & Co., Spartanburg,
S.
'S. C.,
i
:
each for
thereof,
plus
'be
1,
the
the
on
1942
de¬
which
proceeds $670,820 will
capital and
stock of registrant—'
is outstanding—callable
$290,000
[;M[*[:'•1
'at 101%
In
A-2.
registration
Public
Service
CO.
filed
Co.
the
with
statement
SEC
J trust
t' Offering—The
;
sldiarles
;
'
and
Address—Dallas, Texas
Business—This
company
and
its subare
engaged principally in
the
«
•generation, transmission, distribution and
.sale of
electricity, Serving certain communities in Texas, New Mexico, Oklahoma,
•Louisiana, Arkansas and Arizona.
Under
.a
plan of integration and simplification
proposed to be consummated under section
,
•
11
the
of
Act simul¬
consummation of the
Holding
with the
taneously
Company
financing, the company
following transactions:
Merger of Community Power &
.Light Co. and General Public Utilities, Inc.
•[[. (the two present parent companies of the
company) into the company;
liquidation
;
present
proposed
'proposes
Texas-New
Utilities
Mexico
(2-2-42)
Union
.
of
and.
Gas Co.; and re¬
entire outstanding funded
the company itself.
Upon compleGuymon
the
the transactions involved in fore¬
going, it is expected that the company will
; tion of
-have
?
parent
no
Underwriting—Dillon, Read & Co., of
York, is tne principal underwriter;
-
the
the
of
names
•be supplied by
"
\
underwriters
other
UNITED
GAS
will
amendment
added
be
the
to
general
to effectuate the
involved
transactions
financial
Underwriters—None
Terms—-Bonds will be sold to
investors, whose names will
be supplied by amendment, at 99.34%
•
Offering
institutional
I Proceeds—To
Public-
Gas
1953;
to
'{•;
'
and to
Co.,
due
Debentures
due
demand note of $25,925,-
1961.
Balance
will
Aircraft
Standard
INC.
PRODUCTS,
AIRCRAFT
STANDARD
Products,
Inc., filed a
be
used
;
Registrations tat omen tNo. 2-4760, Form
(5-15-41)
A-2
United
SEC
Feb.
on
been
Gas Corp,
21,
unable
chase
to
covering
with
the
trust
pur¬
com¬
private
sale
first
mortgage and col¬
bonds, due 1959.
This
3V<%
amendment states:
expired
poration
the
to
the
insurance
extend
14
proposed
insurance companies of $75,000,000
company's
lateral
ments
stating that it had
further
agreements
panies
filed amendment with
1942,
end
"These purchase agree¬
Feb.
on
intends
to
that
sold
privately,
said
agreements
by
16,
1942.
continue
its
bonds
or
The cor¬
negotiations
shall
renewal
of
be
either
the
otherwise,
offered
or
pest possible price."
Amendment filed June 29,
1942, to defer
effective date
PANY
Union
Light,
Heat
25,000
shares
and
Power
$100
Address—4th
:0faJo; ^
registration statement with the SEC covering $300,000 5%% convertible serial and
f v - sinking fund debentures, due 1943-1947
[ :-V[
Address—Dayton, ■; Ohio
x- 'r rVi [:
v .%
Business—Company
manufactures
and
.
.
aircraft products,
Offering—The
be
[. other
etc.
1943
maturity
the
public at
to
offered
Co.
par
maturities
will
be
Business
33,586 shares ($7.50 par) 40
"cents cumulative preferred stock on a par
for par basis as follows; debentures matur-i
.[.'. wing
1944, $62,000; v debentures
maturing
1945, $62,000; debentures maturing 1946.
•'$62,000;
and
debentures
maturing 1947,
*$65,895.
r [[["[[ [/-,
/
Underwriting—The debentures aggregat¬
ing $251,895 may be sold through underwriter
at 100;
R. N. Webster,. President,
•
'
St.,
Operating
—
company
Cincinnati
electric
to
subscribe
share
'or
each
'or
each
to
25/94ths
units
of
5/94ths of
unit.
lolders
for
in
will
On
share
a
share
subscribe
may
each share held
receive
of
one
5/94ths of
a
to
at
held
Columbia
Gas
Proceeds—To
>2,835,000
com
share
$5.31
associated
construction
costs
companies,
y
v
Registration Statement
\-2.
(3-30-40)
*
.
No.
-.[
W
•-
Amendment:
filed
July 6,
underwriter the
$190,537 debentures he has agreed, to exchange for his 25,405 shares of preferred
stock.
G. Brashears & Co. is named prin-
'
-
i
R. N. Webster may be
cipal underwriter.
an
underwriter
.
■
'
.
$48,105 (1943 maturity
for working capital
Proceeds of
be used
.
„*
> will
.Registration Statement No. 2-4988. Form
A-l. (Filed in San Francisco 4-20-42)
1
[.
Aircraft
Standard
Products,
Inc.,' has
registration
•statement
which
modifies
the
offering
terms of the statement as originally filed.
:
filed
The
amendment
an
1943
to the
offered
maturities
($48,105)
will
be
public at 100.50.
The other
be offered in exchange for
maturity
will
33,586 shares of $7.50 par 40 cents cumula¬
tive preferred
INDIES
1942,
on
a
par
for par basis,
West
Indies
tration
Sugar
to
shares of
common
Address—60
Corp.
E.
.
the
plan
Dominican
tain
of
ing
company
everal
its
par
[
,
99.50,
Amendment
effective
maturity
1946
at
99.00
and
filed
June
9," 1942,
to
defer
MISSOURI
filed a
registration statement with the SEC for
2,695,000 shares common stock, no» par
Union
Electric
1932
Sugar
Corp.
is
and
solely
the
a
of
cer¬
hold¬
of
securities
Underwriters
will
[-■".. "Y
ment
ireadv
named
by amend¬
•[.•'■[■ ■■[[.['V
'V';:':"..'
Offering—The
♦
be
shares
outstanding,
registered
and
are
are
owned
Company of New York, Inc., in dis¬
to the extent of 436.691 shares;
National City Bank of New York, parent
solution,
of
the
former
the
remaining
The
aggregate
company,
17,000
of
stock
of
to
offered
the
is
the
shares
holder
registered
of the outstanding
the
company,
public,
at
a
of
registered
shares
and
com¬
be
be
will
price
to
amendment
by
Proceeds
the
will
be
received
by the selling
Co.
of
Missouri
Form
A2.
Statement
(12-29-411
No.
v.:
[
2-4923
\
-
•
„
[
Amendment filed April 21„ 1942, to defer
effective
date '*
.
!■/
predict
will
re¬
place metals? or light metals re¬
place heavy metals? And which
companies will profit, which lose
out?
Over 80% of the shipments
of the auto industry in April were
war equipment.
Does this presage
a
;
permanent
increase in them
manufacturing activities not di¬
rectly related to automotive trans¬
portation?
.
much
"How
will
air
borne
flected
"This is but
the
a small segment of
of the changes to con¬
type
sider.
but
We know
don't
we
they
coming,
are
yet know the form
they will take,' or the effects they
"To
safeguard
against
these
changes will call for constant vigi¬
lance
on
In the
same
the part of
investors
watch, to analyze and to
the effects
hend
dustries and
take
corporations.
war
It will
take skill
by
a
high
....-•
*
*
weighting
The
goal
of
having
the
same
minimum wage and the same set
of learner and handicapped regu¬
lations
both
under
both
the
Fair
Labor Standards Act and the Pub¬
lic Contracts Act has been
brought
step nearer by action taken
Secretary of Labor Frances
one
by
Perkins
and
L.
Administrator
Hour
and
Metcalfe
of
the
Walling,
Wage
Public Contracts
sions, United
of Labor, it
States
and
Divi¬
Department
announced
was
on
July 2.
Prior to this time there
have been different wage rates and
been, in large
remedied
ure,
action,
sion
by
the
meas¬
announced
the Wage-Hour Divi¬
says
in
New
York
Department,
the
of
which
Labor
July
on
added:
2
;
,
already started.
has pushed it into higa
So it is not too early to rec¬
ognize its possibilities and to take
steps to share constructively in it.
"This situation constitutes, iri
our
[opinion, one of the major
for securing the services
reasons
for
and
adhering
the
to
principle of carefully distributed
risk,; both of which may be ob¬
tained conveniently and econom¬
ically through purchase of shares
of
diversified,
management in¬
vestment
/
companies/'
and
garment
allied
industries
from 37V2 to 40 cents an hour
un¬
der the Public Contracts Act.
subject
have
been
more
closely
The ;
the
to
defined
to
conform
the
to
Odd
of
the
Outerwear
Apparel
Division
of
the
Industry,
and
Women's Apparel Industry.
"The
and
the
determination
the ;[
/:
that
states
orders issued under the Wage
wage
Hour
Law
for
branches
of
apparel industry have had the
effect of establishing
40 cents as
prevailing minimum hourly
rate of pay in the cotton garment
the
and
allied
industries.
the minimum rate under the Pub¬
Act/into
Contracts
line
with
the wage orders
issued under the
Wage and Hour Law and apply¬
ing the
learner and handi¬
same
capped worker
chairmen
of
and
tees
of the American Institute of
industry
tolerances
the
to
thus in keeping with
are
the
Adminisrator's
two
Acts.
policy of co¬
ordinating standards between the
Made up mostly of
excerpts from statements by rec¬
7 '
Banking is announced by David
"The amended learner regula¬
Simms, A.I.B. National Presi¬
dent, who is
Acting Assistant tions, now for the first time ap¬
Manager of the Salt Lake City, plicable under both Acts, require
Utah, branch of the Federal Re¬ employers to list learners, in a
serve Bank of San Francisco.
separate group on the payroll and
Chairmen of the various com¬ to keep records of any experience
ognized
mittees
tion
avia¬
our
industry.
aviation
folder contains
authorities,
one
highly unusual
the
quotation from
source
applied science.
for
this
The quo¬
"For I dipt into the
future, far
,
and
all
would
the
wonder
be;
argosies
of
the
of
dropping
com¬
«
Fund, Inc.:
'
J ~
tains
the
of
record
in
Boston
a
"
con¬
$1,000 in¬
Fund
from
March 15, 1932, through June 30,
1942.
The combined results in¬
clude $551
in dividends from in¬
vestment
income, $585 in capital
gains distributions, and a current
net value of $1,128 for the in¬
In
vestment.
results
total, the combined
the $1,000 invest¬
the
10-year
period
from
for
ment
amounted to
$2,264.
Calvin Bullock:
'■
;
%[■ ■
;
■''
"Many Changes Ahead" is the
title of the July
Calvin
Bullock's
9, 1942, issue of
Bulletin.
The
amazing developments of American
science under the forced draft of
the
war
and
will
bring in
tinues:-
..[[
changes
our
way
that
they
of life are
The Bulletin
con¬
.•>["'■'[?.;■
V
"This is exciting to contemplate,
of course. But for those who in¬
•
'
[
Ji
,
Committee—George T.
Vice President, Manu¬
facturers Trust Co.,
New York
City; C h a p t e r Administration
Committee—P. A. Doyle, Central
Budget
Newell,
Bank,
Oakland,
—
Debate
Calif.;
T.
William
San Francisco.
'
magic
The July 3 issue of Brevits
.• ■
Bank of America, N. T.
purple twilight,
down with costly
4c
,
and
bales."
❖
are:
that
sails,
•
E.
Committee
\
Saw the heavens filled with
merce,
as
C
Bringing
•
members of the national commit¬
1942, and entitled "America Has
Only Begun to Fly," this sponsor
challenges the reader to catch the
/
order1,
Wage-Hour J:
Single Pants,
Shirts, and Allied Garments In¬
dustry, the Sportswear and Other
definition
lic
Appointment
July 3,
Secretary Perkins, effective
July 20, raises the prevailing min¬
imum rate of pay in the cotton
of competent investment manager
ment
*
little folder dated
"The wage determination issued
by
industries
in
Hare's, Ltd.:
a
And Public Contracts Acts "
ana
,
"The trend has
The
compre¬
different in¬
on
It will
time.
to
rails,"
In
Coordinating Wage-Hour }
different learner regulations, un¬
freight replace railroad freight-? der these two
Acts, for what is
age?
How far will synthetics re-}
actually the same industry. , This
place natural raw materials?
j situation has
fund, and not specialized as to in¬
dustry h although
an
unusually
bright rail outioqk has been re¬
touched upon.
Registration
can
plastics
speculative bond
a
by
City
stockholders
date
UNION EUECTRKLCO. OF
[-
in
sugar and invert and blackstrap molasses
n
the Dominican Republic and Cuba ' * 1
supplied
at 98.00
organized
of reorganization
owning
follows:
at
UBC is
way,
vestment
operating subsidiaries engaged prin¬
In
the production
of
raw
cane
cipally
means,
to reflect the outlook.
regis¬
a
St., New York City
[subsidiaries,
mon
1947 maturity
"
Cuban
to
that
mean
a utility bond
simply that the
utility weighting is high in order
V
,
filed
stock, $1
42nd
Business—Company,
pursuant
utility
on.
not
essentially
fund—it
defer
statement with the SEC for 453,691
represents 47.7%
resold through underwriters as
1944 maturity at 100; 1945 matur¬
UBB is
emphasis
does
;
SUGAR CORP,
and may be
ity
•
stock
"This
Boston
WEST
its
to.
that:
-
•
.
In commenting on this diversi¬
the Union Dealer states
■;
effective date >
,
[ has agreed to sell through
100.0%
fication
t
'
.
bonds.
Total
obligations
who
extent
gear.
Pilots
"
what
Utility Operating Company Ol)U-.
gations
22.2%
Utility Holding Company Oblijgatitwm.
36^3
Railroad Obligations......
31.2
industrial Obligations.
10.3
-
•
"For example,
to
training.
,
^
utility
human eye could see,
Saw the vision of the world,
2-4379. Form
securities.
portfolio of the "B" Fund is pres¬
ently comprised of the following
categories:
v:
.
:
The
bj
for
anu
Fund
dium-grade
anc
held
Bond
me¬
share?
debt
bonds
Jnion
"B'^is weighted in favor of
share?
Corp.
current
of
-
will have.
July *10, 1942, in whicn it
poimeu out that the current
is
stock-
new'
Electric
mortgage
low
present
¬
a
$100,016 per
repay
first
and
&
The
dated
Substantially all outstanding stock is held
ly
appreciation
tation is from Alfred Lord Tenny¬
son and runs as follows:
of
at
basis,
5
good income return
a
attractive
investment."
an
field of
Electrh
;
Offering—Stockholders
oper¬
prices of bonds of this type pre¬
sent ah opportunity to make such
a
&
Gas
Corp.
mon
utility
•
■*
fTnderwi iter —Columbia
for
change
Main
that: V "The
medium-grade
vision of the future of
r*
common
[*[C'"ti;;
Jarent
($48,105 V
100. The
offered in ex¬
&
have
afore¬
to the public as circumstances shall dictate
In order to obtain the
(lstered
in
possibilities.
•
-
point is made
secure
and
in
to reimburse treasury for capital ex¬
penditures and possibly to pay accumulated
dividends of
$9,502,490 on companys $7
.
'
develops
can
part
preferred stock
of
changes
in
manufacturing
processes and products, the more
radical the effect upon corporate
.
purchase from United Gas Pipe Line
of
its
1st. &
Coll.
4%
bonds
bonds
ating company and hulding com¬
pany bonds at today's price levels
$6,000,000
er
1942, to defer
Amendment filed June 30,
.'will
6%
pay
United
$28,850,000
6%
to Electric Bond and Share; to repay
$2,000,000 open account debt to E. B. & S.;;
*
effective date
[
redeem
Service
000
in
plan of integration and simplification,
of the company's out-:
standing funded debt
y
.
?
f[ ^
Registration Statement Nq. 2-4981. Form
'
and sale of natural
part of Electric Bond and Share Sys*
gas;
and the refinancing
A-2. (3-31-42)
The
/
portfolio
Address—2 Rector Street, New York Citj
"■/[v;
'
registered
Corp.
grade
The Report is accompanied by a
[[ covering issue of the Union Dealer
'
$75,000,000
first ifnortgage[ and collateral [trust: 3^4%:
bonds due 1958
•[. !
securities
new
company's
be applied
funds and will
.'various
the
sale of
from
Proceeds
the
CORPORATION
Gas
as:
Medium
investor
defer
to
-:
'
ment
'
1942,
y
-
UNION LIGHT, HEAT AND POWER COM
Offering—The bonds, serial notes and
preferred stock, will be sold to the
public, at prices to be supplied by amend¬
will
July 6,
'
■'
'
•
filed
date-
6%
[[■
stock
1942, page
26,
listed
prices, and
iv
i':i(2)
Utility holding company
bonds now selling at 15% below
1936 average prices.
maximum
common
Feb.
;
effective
New
•
such
of
846
United
The names
the
agreed to purchase were listed
"Chronicle"
the
and
of
shares
each
which
in
the
.debt of
are
the? underwriters,
of
regis-;
(no par) common stock,
owned by its parent com¬
which
The North American Co.
particular interest in this
are
(1)
Feb.
on
Its
to
pany,
such
of
Missouri,
ill of
of
Co.
shares
2,695,000
to
funding
of
amendment
naming the .underwrite
in all, who will publicly offer the,
141
ers,
Co.
an
Securi¬
[.[,
statement,
re-
Co.;
and
Public Service
-ties
■
Electric
filed
1942
),
oration
[[77/[
;
Utility
discussed.
operating companies now
selling 16% below 1936 average
[[[.*• /■»
[■:,/■ 7'J'/'■■■•[["•'"[/[.[ .[[
Registration Statement No. 2-4940. Form
\2
Outlook V For
is
utility
•shares-
partial liquidation of
Co.; purchase of Panhandle Power & Light Co., Cimarron Utllicapitalization
.Gulf
com¬
who will receive the entire pro¬
ceeds from the sale to the public of such
'
:
of
•r
Co.,
ican
to effectuate the
•
-'of
shares
pany's common stock are outstanding and
are owned by its parent, The North Amer¬
Nov.
1, 1943, to Nov. 1, 1953, in¬
85,000 shares of 6% cumula¬
tive preferred stock, $100 par value
i [
2,695,000
of
field
other
a
due Feb. 1, 1972; $5,500,000
.serial notes, due in equal annual amounts
from
the
underwriters. will be
•upplied by amendment
U
/•'/"
for:
bonds,
clusive;
of
tem
$18,500,000 of first mortgage and collateral
i;
ties
Underwriting-r-Dillon, Read & Co., New
is named the principal underwriter
fork,
Varnes
Funds. Inc.:
a
Securities"
.
,
SERVICE
PUBLIC
; ;
Trusteed
"Improved
the company's
plant
/■i' Business—Production
Southwestern
; -
Missouri adjacent to
In
ties
1
(6-26-42)
.SOUTHWESTERN
;
St.
Osage hydroelectric
.the
special eight-page R. & M.
Report dated July 1, 1942, the
from
city of
jor
(Continued from page 175)
f
the
its subsidiaries, serving
the
Louis, Mo., and portion of 5
adjacent Missouri counties and of 3 cpum
chases
Registration Statement No. 2-5021. Form
>
engaged primarily in
Union
Amendment
preferred
'
is
North
The
transmission, distribution and sale of -elec,ric energy/ which it generates and pur¬
v;
for retirement of outstanding 5%
.cumulative
of
interest
subsidiary: of
183
vest, it presents yet another ma¬
problem.
The more radical
Investment Trusts
^'v'[[/>*.
Co.
American
Blvd., St. Louis,
[
•
Business—This
number
for additional working
used
.$294,350
.
July
Proceeds—Of
•
•.:/[
;
price to the public
or
principal amount
value
accrued
bentures from
V
$250,000 [y
face
at
Inc.,
Pate,
&
Offering—Offering
[.will be
,
are
S. Dickson <fe Co., Inc., Charlotte, N. C.«
McAllister, Smith
■
underwritten
the amounts
,G. H. Crawford Co.,
ifR.
V
:
Address—315 N. Twelfth
v
Dunn,
& S? A.,
Departmental Conference Com¬
F.
Gee, StateBank
and
Trust
Co.,
the previous
five
Special 7
years.
learner regulations issued for the
Single Pants, Shirts and Allied
Garments, Women's Apparel,
Sportswear, Rainwear, Robes and
Leather
and
Sheep-Lined Gar- <•*
ments Divisions of the Apparel
Industry provide for the employ¬
ment
of learners
in
certain
occu¬
pations at subminimum rates be-77'[
tween 25
mittee—Edward
Richmond, Va.; Educational Ad¬
First National Bank of Chi¬
cago; Forum and Seminar Com-?
mittee—George E. Levine, Provi¬
dence
Institution
for
Savings,
and 324/2
cents an hour.
Bicycle Rationing Begun
The
son,
Providence, R. I.
Membership
'
'■
and
*
/
Enrollment
Office
Price
of
tration announced
Adminis¬
July 2 that
on
beginning July 9 bicycles would
be
rationed
them
Committee, Harper R. Clark, First
National Bank,
Baltimore, Md.;
in
to
their
persons
work
or
needing
for trans¬
portation to their jobs. The order
provides for the release of an
estimated 249,000 bicycles now in
William the stocks of dealers, distributors
manufacturers.
The 7 War
C. Way, Central National Bank of and
Cleveland; Program Committee— Production Board froze sales on
David L. Colby, Boatmen's Na¬ April 2.
United Press, Washing¬
tional Bank, St. Louis.
ton, advices of July 2 said: 7
Nominating Committee
Publicity
—
Committee—Anne
"Persons in gainful occupations
J.
Erste, Federal Reserve Bank of
Cleveland; Public Relations Com¬
mittee—John D. Arthur, Society
for Savings in the City of Cleve¬
land; Public Speaking Committee
—George A. Rogers, First Na¬
in
or
the
Fred
least
American Trust & Banking
Co., Chattanooga, Tenn.; Women's
Committee
Marion G. Rehfuss,
Corn. Exchange National Bank &
»'
that he
three
deliver
ner,
to
"An applicant must show, how¬
must
Pit-
contributes
to
bility requirements for a purchase
tion
C.
or
certificate.
Berger,
Norristown-Penn
Trust
Co., Norristown, Pa.; Transporta¬
Committee—William
which
effort
public wel¬
fare will meet the primary eligi¬
ever,
Committee—G.
work
war
tional Bank of Boston.
Research
or
in
travel
needs
days
a
a
bicycle at
week; that he
quickly
merchandise
or
or
often
to
messages
doing other work, and will
be better able to do
so
by bicycle
—
Trust
Co., Philadelphia.
,
.
the learners may have had within
Planters
visory Committee—C. Edgar John¬
;?
than
by walking
transportation
or
using public
facilities./,
7
,
v
THE COMMERCIAL & FINANCIAL CHRONICLE
184
BUY:
WE WISH TO
BIDS MADE ON BONDS
All South American
WITH
KINGDOM
UNITED
4-4832
York
40
Of Drexe! Institute
George P. Rea, who recently re¬
signed
first paid president of
York Curb Exchange,
as
New
the
of
president
elected
been
has
Philadelphia and will assume his
duties of administrative direction
Mr. Rea
was
Stock
Buffalo
the
of
elected first presi¬
two
later associated for
with Goldman, Sachs
York City and in
elected the first paid
He
was
years
Co.
&
1939
you
to
was
A
.
.
ket—and
courses
(3)
New York Stock Exchange
following
time,
Richard
Cunningham
A.
partnership
withdrawn
from
Craigmyle,
Rogers
York City, as
limited
& Co.,
of June 30.
New
retired
from
Walker
F.
Frank
has
in
partnership in Eastman,
York City, ef¬
fective June 30.
Chester
S.
Fairgrieve, member
retired as
of June 30 from Libaire, Stout &
of the Stock Exchange,
Co., New
tinues
as
firm..v'V:
York City, which con¬
an
Exchange member
"Vv;*
.
Mr.
?
with you
with
talk about patriotic subscrip¬
been done purposely, for this
we're talking about the development of new trends in the
Government market, about the ways you can handle your bank or
institution
(which is fast becoming an investment trust) most
profitably over the next few years of concentration on Government
financing. >r.
■
VVyrV;>:; ,.v- '' .;
.
is
.
money
it can't be made
as
to be made today—real money—even though
"fast" as in the past. . . . At the moment, most
Cleve¬
and
Wilson
he
entered
since
the
bond
department
of the Guaranty Trust Co. of New
In
he
1926
was
Vice-President
Edward
B.
&
Smith
and
corporation
ing opportunities in new
.
.
.
Stock
too
sire
to
over
a
substantial
.
.
The
and
Securities
Exchange
Commission announced today that
it had taken action to extend for
the
operation of the
conditional
exemption to
Rule
X-10B-2.
That exemption, which
was
announced on Feb. 6, 1942,
six
months
designed to permit national
exchanges to try out a
was
securities
the
offerings as a
improving the market
securities comprised
system
•
of
in
the
The exemption
therein.
was
This
31,
special
of
means
to
expire
on
originally
July 31,
action will extend it
1943,
otherwise
unless
the
1942.
to Jan.
Commission
determines.
of
result of last week's $2,000,000,000
...
week, it would take you 66 years to finish the counting.
consider the $80,000,000,000! . . .
a
.
.
Now
.
.
.
.
1944.
or
.
.
Action
bonds out of portfolio is on a
don't try to trade at all.
on
most
.
.
Treasury in keeping books open 48 hours on the 2s
to hold off until second day in order to
subscribers
check price level.
.
.
.
Bell
BOwling Green 9-7030
Teletype NY 1-61
.
excess
person
over-the-counter
come
K.
has
Stevenson
associated
with
Henry
be¬
to, or by,
C. J. Chamberlin Is Now
Didn't accomplish much.
...
—
reserves.
...
.
.'. $180,236,000
acting as a
over-the-counter
transaction of 1% of the purchase
or
Chamberlin has become
with Blyth &
J.
associated
First
person
any
price.
new
Generally speaking,
rule is
affiliated
designed to permit
in
effecting
brokers
over-the-counter
transactions
in
securities to receive remuneration
equal
to
the
minimum
commis¬
sions
prescribed by national se¬
curities exchanges with respect to
similar
transactions
effected
on
such
exchanges.
tion,
where a broker represents
purchaser and seller in the
same
not be
remunera¬
transaction, however, may
greater than the minimum
commission
a
The
purchase
prescribed
sale.
for either
or a
Co., Inc., 75 Federal
Street. Mr. Chamberlin was pre¬
viously with Smith, Barney &
Co.
Prior thereto he
was for
the
in
sale
the
both
Boston
Carey
Commis¬
rule,
broker
.
MASS.
sales
such reg¬
controlled
V
affiliated
an
W.
Abbot,
30 v Broad > Street,
New
York City, and will be in charge
of the municipal department. Mr.
Stevenson was formerly manager
With Blyth & Co.,
com¬
Clause (C) of Section
17 (e) (2) of the Investment Com¬
pany Act of 1940 limits the re¬
muneration
which
may
be re¬
ceived from any source by such
bought in week ended July
seven years manager of the bond
8, bringing total holdings to $2,908,674,000. . . . Previous high was
$2,826,000,000 recorded Sept. 30, 1939. . . . Action not only sup¬ department of Townsend, Anthony
& Tyson and was connected with
porting market directly but indirectly by resultant expansion in
running at peak rate.
Members New York Stock Exchange
sion
Stevenson With Abbot
Donald
BOSTON,
...
Open market purchases of Governments by Reserve Banks are
HAY, FALES & CO.
affiliated
investment
In the absence of any
•
.
.
71 Broadway. N. Y.
relating
be
acting as broker in connec¬
company.;,
.
these days or
caused
rule
istered company or any
.
for the Government by
use
a
an
securities
of
.
Don't try selling in dull market or on minor decline, for
Federal Reserve is likely to be only buyer.
You must be nimble
pfd.
by
with
tion
disappointed in last week's issue, but expecting big
of the sales department of R. A.
days ahead—if they can last through the dull period. . . . Forecast
Ward & Co., Inc., was in charge
is that as debt rises toward the $200,000,000,000 level, price fluc¬
of the municipal bond department
tuations will be held within a one-point range by the Treasury
of
Fitzgerald & Co., Inc., and
and Reserve authorities.
by that time, banks will be primarily
served in the same capacity with
investment institutions.
G. M.-P. Murphy & Co.
One source forecasts 90% of banking system's funds will be
rally.
United Piece Dye, pfd.
Boston & Maine, 1st
.
Dealers
Only time to sell allotments
COMMON
borrowing, public debt is
to $80,000,000,000 mark. . . . Do you know what that figure means?
Well consider the meaning of $1,000,000,000. > . . If you had one
billion and started counting it at the rate of $100 a minute, 48 hours
.
R. Hoe & Co.
of
registered
a
pany
;
up
in
Exchange
.
.
Eagle Lock Co.
and
July 8 announced
on
adoption
received
y
.
18, page
to the remuneration which may
the
INSIDE THE MARKET
a
of June
Securities
Commission
.
.
As
referred
To Inv. Co. Affiliates
The
.
SEC Extends Exemptions
of
Firms;
part
short,
avoid
issue
our
talk
Association
the
Exchange
in
to
Co.
his
in
Philadelphia to the
of
of 2289. At that time he said it was
the
personnel of the Guaranty the joint responsibility of govern¬
and
private
interests
of
Company.
He became a partner ment
of Edward B. Smith & Co., and bringing the financial economy of
when that firm merged with C. D. the nation
through the present
Barney & Co. in 1938, he con¬ emergency to a sound post-war
tinued with the enlarged firm.
; footing.
Field, Richards & Co. was or¬
ganized in 1908 and has been ac¬
tively identified with financing SEC Rule On Returns
took
Officers of Field, Richards will
indicating the timidity of the Treasury and its de¬
trouble of appealing to institutions other than be Reamy E. Field, Cincinnati,
Arthur H. Richards,
banks.
The market had been primed for a longer-term bond, President;
perhaps a 23/s or a 23/4 at the minimum and perhaps a
at the Cleveland, Vice-President; Ham¬
ilton
Wilson,
Cleveland,
Vicemaximum.
The failure of Morgenthau to take advantage of that
build-up stimulated the long-term list anew and now we should get President; Charles H. Richards,
Cincinnati,
Vice-President
and
a
long-term in August.
.
.
Secretary; Russell J. Olderman,
Morgenthau has announced the reopening of the taps, as
Cleveland,
Vice-President
and
predicted here, but this plan may be changed by the comments of
Treasurer, and Robert H. Hall,
bankers and dealers now b^ing questioned as to their preferences
Cleveland,
Assistant
Secretary
or by war developments. . . . Anyway, look for a bond in August. . . .
and Assistant Treasurer,
was
of
a
Securities
of
made
was
Governors
.
.
Association
June 16 in
on
the
Guaranty Company of New York,
where
he
remained
until
1934
when
for
Stock
laboration
elected
of
proposal
Dealers, Inc.; and Marshall R.
Barbour,
President,
Pittsburgh
Stock Exchange.
Mr. Purcell's suggestion for col¬
when
1916,
at¬
pursuance
the commission."
tional
has been connected
firms
decessor
to
groups
in
Exchange;
Edgar
President, Philadelphia
Stock Exchange; James F. Burns,
Jr.,
President,
Association
of
Stock Exchange Firms; Andrew
C. Reid, President, Detroit Stock
Exchange; John S. Fleek, Presi¬
dent, Investment Bankers Asso¬
ciation of America; Wallace H.
Fulton, Executive Director, Na¬
executives are unaware of the develop¬
issue activities. . ; . But in Wall Street,
the professionals are waking up. . . . And soon, maybe within a in the central west.
The firm has
half-year, all your neighbors will be playing this market as they worked
closely
with
Smith,
did on a smaller scale in 1938 and 1939.
Barney & Co. over a period of
The last issue of 2s was a disappointment.
\
V-."-";
The maturity years, y
bankers
recent
York
Smith, Barney and its pre¬
York.
...
That has
.
Cincinnati
of
and
Scott,
land, it is announced.
.
the absence of any
discussion.
in this
There
Dillon & Co., New
.
Co.
securities
Among those invited to attend
are Emil Schram, President, New
Vice-President of Field, Richards
&
various
asked
and
Barney & Co., has been elected a
...
toes, figure on "turning over"
your
on
good dealer and direct him to confer
a
You'll notice
tions
weekly firm changes:
.
ONE
LAST
THE
Weekly Firm Changes
the
.
.
on
issue date approaches.
new
in
the
Securities
the
"joint
exploration of the problems con¬
fronting the securities industry
line of securities.
Second
The New York Stock Exchange
announced
yourself
markets
and
his
CLEVELAND, OHIO —Hamil¬
ton Wilson, formerly in charge of
the
Cleveland
office
of
Smith,
comfortable place in the mar¬
.
each
as
the
industry
tend the meeting
phases of
and
will
a
general
all
firm
between
13
of the country.
manage
for
well
them
made
ten
general
in
Of Field, Richards
more
market
find
has
than
more
But if
.
portfolio three to four times during the year, watch the
as closely as
possible.
To put that another way,
your
r::;:
■
.
for
activity
H. Wilson Named V. P.
block of bonds.
new
yourself
Keep
Co.
series of joint dis¬
a
cussions
Exchange
Commission
will
be
held on Monday (July 20) at the
headquarters of the SEC in Phila¬
delphia.
Ganson Purcell, Chair¬
man of the
Commission, on July
few 32nds on each block,
point profit within four to six weeks.
military science supplemented by
the
Reserve
Officers
Training
' •',C i'/
or
and achieved a
a
Their
maintain
Of
the basis that you'll get 50 to 75% of
your request, but also with the understanding that you have
a
real bottom at par—because of the support of official au¬
thorities—and that you have a good chance of taking a
to Yi
engineering, business adminis¬
tration, home economics and li¬
brary science and for many years
has maintained a department of
Corps.
buy
month
a
Subscribe
(2)
offers
bought
stabilized
been
&
years.
markets
along, sell your old ones—
back—for they will have
As each new issue comes
(1)
.
,";
on
They will
...
1-1397
Confer With SEG
The first of
Mr.
and
tenden
trading
Y.
the
for
Finance
known in all parts
a
N.
Financial Leaders To
La Salle Street, and
associated with Fuller, Crut¬
were
St., N.Y.: HAnover 2-8780
Teletype
then:
summarize
ones
War
Kane
ing circles
.
Surely, the spreads are narrowing.
.
25 Broad
Stephens
have long been prominent in trad¬
out way ahead at the end.
come
To
the
.
for
Mr.
lot
infinitesimal amount of securities.
get a lot of bonds and make a
can
you'll
.
.
large amount of bonds is worth
a
point or more on an
a
.
the profit on each issue is down to a minimum.
course,
in
has
quarter-point on
That's obvious.
.
you
tions.
Institute
higher figure as time goes on.
than
more
president of the Curb Exchange,
during his term of office effecting
substantial economies in its opera¬
Drexel
small. . . . At this
surely not much of a stimulus
issue, just sold, the premium was
.
even
an
M.S.WIEN&CO.
Members N. Y. Security Dealers Ass'n
Investment Industry.
dollar flotations every month, you
expect much higher allotments than ever before. ... In fact,
can look for allotments ranging from 50 to 70%
and maybe,
New
in
.
Ex¬
change in 1928.
In 1931 he be¬
came president of the Bishop Na¬
tional
Bank
of
Honolulu with
which he was associated for seven
years.
.
Bought—Sold—Quoted
has been with
now
mittee
certainty of more multi-billion
can
August 1.
dent
made.
6% 1950
Ryan-
Webber,
Darch & Company.
He recently
assisted
in
organizing the War
Bond Pledge
campaign for the
Treasury Department as one of the
representatives of the Joint Com¬
But, on subscriptions up to $25,000, allotments in full have been
Because of the size of this $2,000,000,000 offering and the
in
Drexel Institute of Technology
until
IT
On the 2%
have
Co.,
with
Mr. Nay was with Halsey, Stuart
from 1921 to 1933 and from 1933
vv"'""
■
BELL TELETYPE NY 1-423
writing, it's hanging around % point,
to subscriptions. .... .
&
associated
Common &
with
formerly
announced.
■;(Continued from first page)
HOW TO DO
both
Bridge Works
B.
Co., 100 South La Salle
Street, James E. Day, president,
On "Governments"
Our Reporter
Donald
and
Nichols &
r-V
,,
" */" \
Security Dealers Association
HA 2-2772
Exchange Pl„ N. Y.
Geo. Rea Named Pres.
York
New
Members
Kane
Cruttenden
become
BROS.
Established 1920
....
1-1179
Teletype N. Y.
Request
on
KATZ
S. H. JungerCo.
Exchange PI., New
Bids
Firm
l
,,
Fuller,
URUGUAY
BRAZIL
T.
Stephens,
IRELAND
BRITAIN AND NORTH
GREAT
ARGENTINA
Inquiries Invited
Dig by
Vincent
All Sterling Issues
MUTILATED
Phone
CHICAGO,
ILL. — Leston B..
Nay, formerly vice president of
Webber, Darch & Company, and
(Listed and Unlisted)
OR
40
Nay, Kane & Stephens
Join Ryan-Nichols Go.
a„d
European Dollar Bonds
COUPONS MISSING
Thursday, July 16, 1942
Boston
Corporation..
■
I. Newton
I.
Newton
Perry Dead \
Perry, > for
many
years
prominent in Chicago in¬
vestment circles, died recently at
the age.of fifty-six.
@FedFRASER