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S^iAMtlUtaluL
JUL 2 3 1943
Final
Edition
ESTABLISHED OVER 100
In 2 Sections-Section
YEARS
1
ommetciaL an
Reg.
Volume
158
Number 4196
New
The Changing Func¬ When Inflation
not
or
cipally
For
months
many
watched
bankers
have
i
their
deposits
no
and
investm
t
e n
to Tecord
soar
.heights.
;the
For
calendar
Federal
the
Corp.
War
"
re¬
cial
ports that to- '
^insured
■mercial
banks
»investm
o
t
in creased
169.9%,
Austin
J.
while
White
.total loans decreased 11.1%. As of Dec.
'loans
to
of
27.7%
such
of
T h
i
banks
f
o
loans amounted
t
•
f
o
80%. Many
total
31, 1942,
a
devalued
amounted
assets, and in¬
vestments to 36.5% of assets.
As
of Dec.
The
France •:w a s
31, 1941,
European.
Dr. Ivan WriSht
their
and
resulting
Asiatic
In stressing <$>importance of both party and party
Congress to freedom, Prof. Moley eyes."
and
relationships
told the conference that "both de¬
support, for their stake
serve your
in the State and your stake
State
World
every
are
'
in the
interdependent."
his remarks ob¬
The speaker in
served
that
"we
commer¬
of
disintegration
of
have
the
seen
the
Democratic
<8>
Over-the-Counter Trading On The
National Securities Exchanges
By VERNON HUGHES
The
proposal of the Securities and Exchange Commis¬
sion to allow regional stock
exchanges to list securities with
"predominately intra-state markets," and the proposal to
abolish the over-the-counter markets
President of the
by Howard R. Taylor,
Baltimore Stock
Exchange, deserve careful
d
a n
analysis by everyone interested in the securities business
(Continued under "Ohio Munic¬
South American countries de¬ and in
private corporate enterprise of any kind. The vexing
ipal Comment" on page 302)
valued their currencies.
The problem of how to
supervise the securities markets and par¬
United States, British Empire
ticularly the over-the-counter markets "in the public inter¬
OHIO
1
countries, neutral European est," and to "protect the investor" will never end as
long
Corporates—Municipals j countries and a few other as private enterprise lasts. All securities exchanges are
Special material and items of small countries escaped de¬ called "national securities
exchanges" if they are registered
but none escaped with the Securities and
interest with reference to dealer valuation
Exchange Commission.
This is
activities in the State of Ohio ap¬ some inflation and its effects. stretching a name and no doubt
provocative of misunder¬
pears on page 302.
1
Inflation arises from unbal¬ standings.,. Most of these exchanges are regional or local and
their primary interest is in local securities for local
ance d ;
budgets, excessive
people.
For index see page 328.
debts, depreciation of
the Any transactions in securities of national interest or in
-
dislocated produc¬
tion, scarcity of goods, heavy
currency,
QUICK ACTION ON DESIGN
•
AND CONSTRUCTION
taxes and the excessive
(Continued
-.
also
■;
on
page
buy-
which there is
a
national market
actions in these securities
real national market.
a
on
It
(Continued
306)
Buy
■
governed by the trans¬
exchanges where there is
perhaps true that the stock
is
on
312)
page
;
v;
llnil FUNDAMENTAL
*
Bond
FINANCING and VALUATIONS
leader
of
the
party;; And in
the
other
party,
we
see
per
sistent
effort "
under
dis¬
to
way
rupt and deT
stroy the Re-
-
publican party
or g anization
such;"
as
"Those
in
forces
both
ies
part¬
that
thus
seek to weak¬
en
popular
re-
spect for party
Raymond Moley
organization
and for
Congress" he added, "are
forces that are inimical to ulti¬
mate freedom in.* America."
Prof.
that
Nation
has
toid the gathering,
Moley
"the
effort
under
been
so
federalize
to
of
stress
the
productive
our
war
of mis¬
management that it may be many
a
year before
any
other public
leader
will
come
forward
finds
that
"the
(Continued
of
idea
on
with
THE
PROSPECTUS
R. H. Johnson & Co.
Established
San Francisco
OBTAINED
page
States'
308)
CHASE
'
BANK
OF THE CITY OF NEW YORK
Brokerage
AUTHORIZED
1927
DEALERS
SECURITIES
V.
•v"
or
correspondent
from
Hardy&Co.
Street, New York $
BOSTON
HUGH W. LONG and COMPANY
Pittsburgh
Buffalo
Williamsport
Members New
York Stock
York
INCO HPORATID
PHILADELPHIA
Albany
IS EXCHANGE PUCE
634 SO. SPRING ST.
JERSEY CITY
Syracuse
facilities
.
Members New
64 Wall
Troy
service with Chase
and Dealers
BE
MAY
"
INVESTMENT
Broaden your customer
FROM
LOS ANGELES
Dallas
Exchange
Curb Exchange
30 Broad St.
Tel. DIgby 4-8400
New York 4
Member
Federal
Deposit Insurance
Corporation
Tele. NY 1-733
Underwriters
1
Distributors
Actual Trading
Dealers
,
Markets, always
by specialists in
Over-The-Counter
•
Peoples Light
Stokely Bros. & Co.
5% PREFERRED
& Power
Preferred
Securities
Hirsch, Lilienthal & Co.
Bought—Sold—Quoted
Members New York Stock Exchange
and
other
-
London
NEW
YORK
-
Geneva
Members
4, N.Y.
25 Broad St.
HAnover
2-0600
Teletype NY 1-210
1
Rep.
CHICAGO 3, ILL.
135 So.
LaSalle St.
State
8770
Teletype CG 1210
N.
Security
45 Nassau Street
Tel.
REctor 2-3600
Philadelphia
REYNOLDS & CO.
INCORPORATED
Y.
Dealers
Ass'n
New York 5
Teletype N. Y. 1-576
Telephone:
•
Analysis upon Request
HART SMITH & CO.
Kobbe, Gearhart & Co.
Exchanges
Enterprise
6015
Members New York Stock
Exchange
120
Broadway, New York 5, N. Y
Telephoned REctor 2-7400
Bell
Teletype NY .1-635
Members
New
York Security
52 WILLIAM ST., N. Y. 5
Bell
New York
ira haupt&co.
„
Dealers Assn.
HAnover 2-6980
Teletype NY 1-395
Montreal
Toronto
Members
New
York Stock Exchange
111 Broadway
a
He """further
nationalism."
new
Service
INVESTORS IND
ENGINEERSand CONSTRUCTORS
NEW YORK
the
for Banks, Brokers
WAR BONDS
Sanderson & Porter
Chicago
-
giving
to
NATIONAL
In connection with
52 WILLIAM STREET
Execu-
v e
orders
are
;
MANAGEMENT PROBLEMS
a
of personal servitors
group
the
t i
our
see
the
SURVEYS AND REPORTS
■
small
of
a
*
organization
before
He continued:
"We
the
financial
from
and
freedom."
®
Germany .was
destroyed.;
11>
e n
n
civilized
currency
1
a
i
world.
•
increased
26.5%,. t
Inflations
condition
the
com-
countries
after this war, should it be compelled to surrender its
assume
essential
as
I affected the; economic
country
tal deposits of
should
possible because
usually more costly than war.
of inflation always varies with
different
policies.
De¬
posit Insurance
are
The extent
1942, the
year
much inflation
as
inflation and deflation
.
such recognition by those "who have already been reminded very
sharply of the fact that business cannot sustain the burden that it
Every war has brought inflation. This one is proving
exception in spite of the costly control efforts.
Most
countries seek to avoid
s
tion
Professor of Economics, Brooklyn College
1
y:'>-
decline
while
plea for the recognition of "the importance of party and Congress
was made by Raymond Moley, who at the Tax Founda¬
Conference
in
New
York
City earlier this month, urged
to "freedom"
By DR. IVAN WRIGHT
institutions.
.
Copy
a
Prof. Raymond Moley Declares Importance Of Party
Savings, Investments and Business Be ProAnd Congress To Freedom Should Be Recognized
tected Against These Destructive; Forces?
A
they .like it,
today prin¬
their
loans
Cents
60
As Inimical To Freedom
are
investment
Price
York, N. Y., Thursday, July 22, 1943
How Can
By J. A. WHITE
Whether
Office
Pat.
Cannot Be Far Behind
Municipal Portfolio
commercial banks
S.
Comes, Deflation u0ne-Man Parties" Decried
tion Of A Bank's
•
U.
REctor 2-3100
Teletype NY 1-1920
& FINANCIAL CHRONICLE
THE COMMERCIAL
298
Thursday, July 22, 1943
Alabama Mills
;Trading Markets in:
Republic Natural Gas
Appliance
KING
|
KING
&
New
Teletype
Telephone
Du Mont Labor., new
Washington Prop. 7's, 1952 & Com.
Stock
■'«.'v
■
Members New York Stock
25 Broad
\.
New
REctor
YORK
Quigg With
? Paine, Webber Firm
ley, Trust Company
how Tis'.V associated
&
head¬
them with "some pertinent Tacts''-' affecting the. national
exchanges. Mr. Taylor; said it is his understanding that
SEC "was formed with the primary object of protecting the
Chicago
fice, 209 South
L
o
f
-
M
was
~—-
a legitimate exchange; own communities.
Mr. Taylor's previous letter ap¬
"fly-by-night" brokers, Mr.'
Taylor said he believed the pub-1 peared in these columns July 1?
lie "will best be served by a com¬ page 2. *
•
- •
on
31
his
Securities
current
letter?
and
1.
under
Securities
change Act of 1934.
"So
that
Trust
^;'?V
})
may
you
have
some
;
been
appointed, manager of the
Mr. Quigg has
active in the work of the
IBA
for
was ^
Douglas Shoe
&
Eligible For Unlisted Trading On Exchanges
Preferred
Indiana Limestone
Inc.
1952
6s,
Frank
\
Queensboro Gas & Elec.
Preferred
6%
Retail
Security and
<
sion
Properties
Struthers Wefls
Common
to
1949
1
possible 'for
practically all
Telephone: WHitehall 3-1223
securities
*
Teletype NY 1-1843
Lumber
>
t
Aircraft
Northrop
-
ing on the ex¬
changes,
h e
Happiness Stores
further
that
Vertientes-Camaguey Sug.
stated
his
asso¬
ciation- would
York
Common,
Cor|
make
Frank
Issued
When
a
thor¬
Dunne
ough study of
the proposal
from the standpoint of its effect
.V
oreene0aCompairiij
Members N.
37
Wall
on
HAnover
Teletypes—NY
&
the public interest and the se¬
Chicago Stock Clearing
Corp., wholly owned subsidiary of
The Chicago Stock Exchange, the
.
f
Tortorell,
Evelynne
Assistant
Assistant Manager.,
Miss Tortorell has been in the
Treasurer
&
of
the Chicago Stock
Clearing Corp., serving in various
capacities since 1930. >
?
employ
Keith Opens
In New York
of¬
60 East 42nd Street, New
Jerome
has
Keith
opened
York
curities
sion.
:
and
be made
and the Se¬
Exchange
Commis¬
"
-
" •'
City, to engage in a general
securities business.
.In the ^past
Mr. Keith
ert
:
Robert C. Mayer & Co., Inc.
'
"Established
Telephone DIgby 4-7900
Bell System Teletype NY 1-1790 :
Chester A. Long Opens
As Dealer In Chicago
..} <Special
to The
Financial
fices
vard.
West Jackson Boule-
141
at
Mr.
recently resigned because of his
removal
to
the
Central States
John
Wittbold
*
0 '•
Milbank -Corporation,
Co.
&
and
was
of the-municipal depart¬
ment for Hadley, Wieland & Co. *
manager
«
PEP Looks Attractive
California and
Eastman, Dillon & Co.,
E.
was
an
officer of Rob^-
Leyendecker, Inc.
upon
Electric
Portland
Bank of America" ?
15 Broad
pany
collateral
request from Eastman,
ties for
Dil¬
Ric-hte
issued
„
'
To Staff
30 Broad
Street, New York City, announces
that Chester J. Ralph has joined
theirAlbany-Schenectady sales
staff. 'jW. W. Carpenter has joined
the staff in Utica and Hugo Duke
has • joined
the Rochester sales
staff.,,, Rayrhond F,, Ryan is rep¬
resenting the company in Niagara
County, New York.
M.
Horner
Scherck,
Landreth
St. Louis, Mo.; Copies
this; circular
and
some
the
discussing
the
company
for
prospects
..
....
Horner Co. Adds
R.
by
Cbmpany,
r
Building,
of
possibili¬
appreciation according to
circular
a
Com-
incomej 6s
1950 offer attractive
of
growth in
& Co.
lon
Power
trust
Co.,
request
upon
detail, may be had
,
from
Richter Company.
Position
Scherck,
; +:
Markets:
.f
-
Aircraft & Diesel
Equipment
Carey Trust—Aii Issues
;
'
Columbia Baking, Pfd. & Com.
■
■
:
Chefford Master Mfg.
Galveston-Houston Co.
.
Citizens Utilities
Detroit '&
...»
Eastern
f
Missouri Pacific
Sugar Assoc.
data
FASHION PARK, Inc.
on
Airlines
Mailed'
FIRST BOSTON CORP.
&
Eastern Corp.
J.
upon
MERCK & CO.
request
$3.50 Cumulative
Jefferson Lake
Preferred
Nq funded debt or bank
Liberty Baking, Pfd.
loans.
Nu-Enamel
of
April
1, 1943.
Earnings
Pierce-Butler Radiator
QUEENSBORO GAS & ELEC.
1942 in excess of $9.00 per share
TRIUMPH EXPLOSIVES
& Radio
Descriptive Circular on Request
York Corrugating
SIMONS, UNBURN & CO.
T. J. FEIBLEMAN & CO.
U. S. Radiator, Pfd.
Bonds
Water Bonds
&
Stocks
120 Broadway, New York
G. A. Saxton & Co., Inc.
'
1170 PINE
11
ST., N.
Y.
5
WHitehall
Teletype NY 1-609
Sulphur, Pfd. & Com.
Accumulations $17.50 per share
as
Central RR of NJ
Farnsworth Tel.
Descriptive
BLAIR & CO
BRAN IFF AIRWAYS
Tunnel
Canada
4-4970 11
|j
Phone:
&
Established 1926
Direct
Wires
-Bell
REctor
2-8700
Teletype NY 1-1288
-Members- New YorkKSecurity Dealers Association
to
BOSTON
—
'
,
Long in the past was
the
of the association.
•
■
in the securities business from of¬
with
group
"f
(Jhroniciej
CHICAGO, 111. — Chester
A.
Long,
formerly
with
Doyle,
O'Connor & Co.,vis now engaging
in 1940, but
the board of governos
1915
Street, New York 5
30 Pine
t
:
fices at
known to the public
1127
tors of the
sult of the study would
2-4850
1-1126
having served
years,
,
? CHICAGO,
curities business, and that the re¬
Y. Security Dealers Assn,
Street, New York 5, N. Y.
Tel.
Bell
15
practically all Mississippi Val¬
ley committees and on several
national
committees.
He
was
eldcted for a three year term to
on
the
in
-t he
over
Common, New & Old
now
bond department; ;
following officers were elected: -? . Street, New York City, members
Kenneth L. Smith, President. ?; of the New York Stock Exchange
Harold I. Kramer, Vice-Presir- have prepared an attractive book¬
counter mar¬
dent and General Manager.
let
entitled "California and the
ket to become
Martin E. Nelson, Secretary. -.
Bank of America,"
Copies of this
eligible
for
Walter R. Hawes, Treasurer, i
interesting brochure may be had
.unlisted trad¬
'traded
Long-Bell
Elects New Officers ?
ILL.—At the annual
it meeting of the Board of Direc¬
would make
Street, New York 5
Bell
Chicago Clearing Corp.
stated that the
rule if adopted
H. G. BRONS & CO.
20 Pine
Security balers
York
~
Exchange Commis-^
exempt securities public¬
change -Act,
Preferred—5 % s,
&
the-New
ly held from Section 12 (a) of the
:'
:
Securities Ex¬
1959
6s,
of
President
Dunne,
Association, in response to numerous inquiries regarding the attitude
of the over-the-counter industry to the tentative proposal of the
;
,,
bank, and in 1936
Spg. Brook W.S. Pfd.
Ohio Match
Com¬
In 1927. he was elected an
of the
Scranton
imme-;
after
pany
diately
ment;
Common
F. Quigg
+
•
officer
W. L.
Spokane Int'l Ry. Esc. Recpts.
sissippi Valley
James
:
Bakeries, Pfd.
the
joined
Chicago
office of Mis¬
Act of 1933 and the Securities Ex¬
.
Interstate
the
Exchange
e.,
of
ernors
from
Northwestern
pertinent facts before you in eon-; graduating
nectiori with my letter of June 26, University in 1922.
In 1923 he
I am taking the liberty of writing wasappointed ; manager
more Exchange head sent the let¬
of the
ter to the members at their homes, you' again'. ?•"?' bank's ^Kansas
City office, and
**T' ' w-Him^e Stock Exchange
later in the same year was moved
expressing the hope that they will
^ ;
now
(Continued on page 328)? i ;, to the home office as a member
study the situation in them
of the municipal buying depart¬
Telephone COrtlandt 7-4070
Bell System Teletype NY 1-1548
I
Teletype NY 1-2361
Deep Rock Oil Corp.
the
of gov¬
board
IB A,
the .Acts
Commission' and
'
New York 5
Nassau Street
•
which it operates,
V
■'1 r V+
Inasmuch as Congress has re¬
cessed until September, the Balti¬
Exchange
Curb
of
text
mem-
a
ber1 of
July 16, follows:
"Re:
with the location of the issu¬
ance
Vanderhoef & Robinson
York
dated
designated properly supervised
ing ' corporation."
Preferred
New
handled
be
exchanges and that various issues,
already listed, should be allo¬
cated to such exchanges in accord¬
United Cigar Whelen
Members
securities
in
not
Preferred
■.
The
pulsory regulation that all trans¬
actions
Taggart Corporation
I
Broadway, N. Y. 5, N. Y.
r.
members of
i
120
REctor 2-7634
Quigg, - w h o
until recently
and
1952
C. E. de Willers & Co,
?. Salle
a
Street
the kind.?. Citing
IN "THE SHEETS'.'
:
Curtis
with
son.
"""
6s
,
LISTINGS
OUR
SEE
with
Paine,
Webber, Jack¬
quarters
i n
the ..firm's
public and the result is that it is doing nothing of
the
differences
in
trading
by1^——
;—:
Interstate Power
Rails and Industrials
of St. Louis,
the
1-1227
Actual Markets in ; ' i
James F. Quigg, for 21 years as¬
sociated with the Mississippi Val¬
securities
WOrth 2-4230
Y.
branch offices
y
acquaint
Exchange
Broadway, N. Y. 5, N. Y.
Teletype N.
onr
2-7815
Taylor, President jof the Baltimore Stock Exchange,
addressed another letter to members of Congress designed to
has
Bell
NY 1-1557
Orleans, La.-Birmingham, Ala.
Direct wires to
,
Exchange
St., New York 4, N. Y.
HAnover 2-0700
Exchange
Howard R.
Mitchell & Company
120
Tel.
Exchange; Head (In Letter: To Congressmen
Again Urges Removal Of Restrictions On
Exchange Trading Privileges >
Pittsburgh Hotel 5's, 1962 & 1967
Stock
York
'?
'
120 BROADWAY, NEW
Baltimore
Common
Baltimore
Steiner,Rouse&Co.
•New York'Curb Exchange
1-672
Over-The-Counter Markets
Axton Fisher Tobacco, B
Members
i
James F.
„
Dodge, Des Moines & Sou.
&
New
-.
-
Urges
Cons. Machine Tool, units
Bonds
'/ /
i
1-423
BSI.& TEI.ETYPE NY
Ft.
NY
i
:; "V: Members
NEW. YORK 6, N. Y.
115 BROADWAY ;
ay 7-0100
BArclay 7-(
HA 2-2772
Exchange PL, 3ST.Y.
40
t t.
^
1952 & Common
5s,
McDonnell &(o.
Other Principal Exchanges /
Members JV. Y. Stock Exchange and
Dealers AsS'n
Security
York
,/■>':
Walworth Pfd.
/;
x
i
GOODBODY & ;€o. jff#
f
Established, 1920
Members
National Fireproofing
Remington Arms
^
canadian BANKS
i
Birmingham Gas.
Botany Pfd. & Common
Warren Bros. Class "B" & "C"
canadian rails
Mid-Continental Airlines
'
V
canadian mines
Common
.
;•>
^
v'canadian utilities
Peoples Light & Power
American Cyanamid Pfd.
v:
v
Canadian industrials
Common
Bendix Home
We Maintain Active Markets for
.
HARTFORD
—
PHILADELPHIA
Members New York Stock
25 Broad St., New
H4nover
2-0600
Exchange
York 4, N. Y.
Tele.
NY 1-210
Members
New
Orleans
41 Broad Street
BOwling Green 9-4433
Stock
Exchange
New York 4
Tele. NY 1-493
v
'
Volume
>
158
Number 4196
•
The COMMERCIAL and
-
THE COMMERCIAL & FINANCIAL CHRONICLE
;
299
•
'
CHRONICLE
FINANCIAL
.
U. S. Patent Office
Reg.
.*
.
We have
H. H. Robertson j
j
William B. Dana Oompany
''v
'
Publishers
;
—
25 Spruce Street, New
3-3341
BEekman
Herbert
D.
A. E.
j"
•
;
York 7
Public Service of
Staley Mfg.
^
Editor and Publisher
j
Thursday,
.v.
..
Published
July 22,
twice
Rockwood & Co.
;
Manager
1943
:\v:
> v
week
a
AND COMPANY
THE
Vertientes
[every
Thursday
(general news and ad.i-vertising issue) with a statistical
issue an Monday]
Punta
"HOW"
Puget Sound Power & Light Co. 5% Preferred
.
President
William D. Riggs, Business
.
B. S.
5°/c Preferred
Oklahoma 5% Preferred
West Penn Power Co. Common
;
Long-Bell Lumber,
;
Dana Seibert,
trading interest in
C*as <S: Electric Co.
V
Seibert,
William
active
an
r Rochester
,
-
^
THEORY
(When Issued)
-
„
i
How
.v.vVi \
If Spencer
Camag'y
Trask & Co.
do
it?
m
to
g*ood
bids
obsolete and little traded
on
securities!
99 WALL
Telephone HAnover 2-4300
Xiichtenstein
That's
what
they all want
kr.ow when he makes
those
25 Broad Street, New York
Alegre Sugar
does
STREET, NEW YORK
Teletype NY 1-5
Telephone:
WHitehall
4-6551
1
Other
Offices:
Chicago—In charge of
Fred H. Gray, Western Representative,
Field Building (Telephone State 0613);
London—Ed wards & Smith, 1 Drapers'
j Gardens, London, E.C.
h\:( ,
.
-•[
f
Copyright
Company. • >
I
1043
William
by
Members
..
,
B.
32
Dana
iruary 25, 1942, at the post office at New
*York, N.'Y.,
under the
of
Act
York«Security
Broadway
'
CHICAGO 4 :
:
,
If Stockholders!
|
.J:
Harrison 2075
Teletype; CG .128
,
8, 1879.
N. Y»
Group Of 1BA
NOTE—On account of the Jluctuatlons
In -the rate of exchange, remittances
i
for
advertise-
;
foreign
i
ments must be made in New York funds.
subscriptions
Our
Real
and
Estate
Department
Securities
specialized
past twelve years in:
for the
has
v;
of
Vicissitudes
scheduled; for
1
40 Wall
York
5 in New York
-
/
St., N.Y. 5
Bell
NY
Feibleman
J.
T.
&
Co.,
Ex¬
change, 41 Broad Street,,: New
York, have just prepared an in-!
teresting circular on Nu-Enamel
Corporation which shows the out¬
look of the company,
and
also
its business
the earnings for last year and
comparative statistics for the
first six months of 1943 compared
with 1942.
The report- likewise
includes
ord
firm's dividend
the
for
the
rec¬
four years and
the cash position it enjoys as of
June 30, last, compared with Dec.
31, 1942.
Copies will gladly be
furnished
any
one
requesting
them.
can
are
Frank M. Stanton
to
serve'
has
also
avail¬
for
Aviation
Macdonald,
partner
a
term.
Frank
M.
Stanton, Vice Presi¬
dent of The First Boston
Corpora¬
tion, also- in New York City, to
serve for a
three-year term. Mr;
Stanton
is
now
serving
-S t
r
upon
request.
Duty
in Ira
Stock
a
Military
,
Market
gives you
2H
On
a
year
a
ployees
M. Goldsmith, a part¬
Haupt & Co., New York
now
NY
1-120!
tional
Argo Oil
Federal Water & Gas
■
^„
Vertientes
f
Camaguey Sugar
American
Export Airlines
J.F.Reilly&Co.
Mevibers
are
New
d f
goo
situation
in
ad¬
cop¬
f
the
there
Ill
York
Security
Dealers
Assn.
Broadway, New York, N. Y.
liEctor 2-5288
Bell
System
Teletype,
N.
Y. 1-2480
O
th
tion
is"
the
Dr.
'
when
have
such
a
seen
fine
exposition of the effect. of infla¬
tion
as
upon
corporate management
contained in this article.
JOHN
SLOANE
W.
J.
&
Est. 1926
H.
V.
Kaltenborn
MZOD
HiRiao&fo.m
.
•
do
<•
,
our
;
„
.
170 Broadway
Bell System
■
on
page
316)
*
,
i
Sloane,
Central States Elec. Corp.
F.
W.e
with
Na¬
New York City
believes
are
in
general
the
of
ar¬
Dr. Ivan Wright; as it
at
offer
attractive
current
Great American Industries
Greater New York Breweries
Berkeley-Carteret 5 Vis, 1951
Harriman
possibil¬
so
& CO.
Bldg. 6s, 1951
Frank C.Masterson& Co.
levels.
Copies of
these circulars may be had upon
^ermest from Blair F. Claybaugh
agreement
the:, philosophy
ticle by
ities
(Va.)
Common, 6% Pfd. & 1% Pfd.
Claybaugh & Co., 72
Wall
Street, "New York
City,
members
of ; the
Philadelphia
Stock" Exchange,- have prepared
interesting circulars on Ft. Dodge,
Des Moines & Southern Railway
(4s of 1991 and common), Utica
& Mohawk Valley Railway (4V2S
of 1941), and Consolidated Dear¬
born (common), which the firm
■
v-c
COrtlandt 7-6190
Teletype NY 1-84
best to hold down
Attractive Situations
I do not
I
us
Blair
know
-
Gill
Bartgis Brothers
Ivan
.
rights
,
Wright has I
has expressed in his "Chronicle"
in
cause
I
which
and
Stromberg-Carlson
why
with
(Continued
the;field, be¬
H.
common
sound:
sense::
Request
Federal Screw Works
infla¬
agree
on
to my
associates
Joe
an
end
e
Let
cover
Memorandum
spree.
That
I
Gisholt Machine Co.
al¬
s
unhappy
article.
al
of the
current
For
■under person¬
S.
Government
Chairman,
WARRANTS
c
ex¬
inflation."
and sent them
Nat'l City Bank of Cleve.
Situation Of Interest
The
who
and
who dis¬
"good hedges against
upon
"C h ,r o nicle",
ing Airline Stock
AIRLINES.
secured
ies
Dividend Pay¬
CHICAGO&SOUTHERN
that
ditional
Haupt firm have
preceded Captain Goldsmith in
the military service. "
call!
striking
much
so
I
U.
j
This,: was a
very
"
Exchange, is
captain in the
ckholders
o
.article .an d
impressed me
B. M. Goldsmith On
Bertram
course
to
r
.
Current
Teletype
always become irritated when
Inflation."
the
as
farewell party by the partners and
250 employees of Ira
Haupt & Co,
One other partner and 30 -em¬
y4 Point Over
2-8970
read financial experts
ways ; i
Group.
ner
I
I
Through the
Vicissitudes of
Chairman of the Executive Com¬
mittee of the New York
War
those
inf la;ti o n',1
of Dominick & Dominick in New
York City, to serve for a three-
as
obtainable
HAnover
hedges against'
I
JOE H. GILL
serv.ipg
Army,
Branch,
and is stationed for the
present at
Fort Custer, Battle
Creek, Mich. ;
Before leaving, on active
duty,
Captain Goldsmith was given a
General
INC.
.
Broadway, New York, N. Y.
•
Bottlers
likewise
..
39
President^ Electric Power & Light There are
Corporation, New York City
j
paper: profits,
II read with great interest the which turn
article in the July 8 issue of the nirt to he just
"Chronicle," by Dr. Ivan Wrightj that when the
entitled "Managing a Business For end
comes.
City, members >of the New York
and
Participations
New York City
]' There
given herewith:
two-year
a
able special reports on Red Rock
Equipment,
Co.'s
•
H. V. KALTENBORN
no
<p'/.
Ranald H.
year
15 and others that
be accommodated in this issue
past
firm
The
York
mem¬
Stock
Ctfs.
Ctfs.
Membert New York Security Dealers
Assn.
come
given in our
New
o
term.
Orleans
New
bers
;
1
have
to
knowledge
pressed objective.
of July
issue
Hutton
Inc. * in " Buf-;
Interesting Speculation
Co.
Co.
.Title
Mtge.
other
Trust
Ctfs.
luoldwater&co:
store, speculating in inventories,
is performing a hazardous finan¬
cial function, foreign to its ex¬
which
Inflation,"
these comments were
Pomeroy,
a
the
regarding the views and
conclusions drawn by Dr. Wright
in this excellent article.
Some of
Scho ell-?
6
1-2033
f
■:%
full knowledge
a
phase
more.
to hand
J.
President
of
kopf,
Whitehall 4-6330
Teletype
the
of
-
Through
comments
numerous
:
V Walter
Exchange "
Stock
TitU
&
all
In
Co.
Complete Statistical Information
perience and • can better afford
(?) the possible losses.
A retail
appeared in ."The Chronicle'' • of
July 8.
As was to be expected,
November 3 to
for quotations
"Wright,
Stockholders
for
Meeting
speculative
have
Professor of Eco¬
nomics, Brooklyn College, wrote
his article, "Managing a Business
An¬
1943
With the foregoing in mind Dr.
Ivan*
Monro, who is
New
and
Invited
Mtg®.
,
with the close
Yewburger, Loeb & Co.
^Members
Bond
political conditions
America, which comprises* New and
expectations. With a thorough ^knowledge of inflation and defla¬
York, New. Jersey, and Connecti¬
tion conditions, and their effects^
cut, has elect- r ~ 3
•' V//!upon
business and finance the vividly points out,, a retail store
ed the follow¬
management
and
investor- can would do well to work on mini¬
ing to serve as
prepare a blueprint for a flexible mum inventories in times of in¬
Governors
of
flation and deflation,, leaving the
policy.; :I
City:
us
The management should have
of what to expect and a flexible program
constantly in the processes
of readjustment to meet changing economic and
Association i of
;; Associate
tion'for terms
Company
Certificates
Call
'
■:
Group of the In¬
Bankers
beg inni n'g
New York Title )
-
Lawyers
Bank
ments that follow.'
The New York
..
vestment
nual
^
Inquiries
,
the
Lawyers Mortgage \
Company Certificates
and Mortgage
In
•or
.
t;.
Through The
(sA well-informed management is the best hedge a corporation
its stockholders have against inflation and*
the-deflation-readjust¬
■of
'■<
Specialists
Lawyers
v-'V:
Subscriptions in United (States and
Posessions, $26.00 per year; in Dominion
Canada, $27.50 per year; South and
1 Central America, s Spain;- Mexico and
i'Cuba, $29.50 per year; jGreat Britain,
.Continental Europe (except,Spain), Asia,
Australia and Africa, $31.00 per year.
Are
REAL ESTATESECURITIES
Vicissitudes 01 Inflation
March
'
•
W«
Managing A Business for
Dealers Ass'n
Board ofTrade BIdf.
DIgby 4-8640
Teletype NY 1-832. 834
matter Feb-
as second-class
New
NEW YORK 4 '
)
Reentered
BROS]
STRAUSS
u
Members
•
York
New
64 WALL ST.
Exchange
Curb
NEW
^
YORK 5
HAnover 2-8470
Teletype NY 1-1140
!
City Bank,of Cleveland of-?
fers attractive possibilities accord¬
Gives,you the right,to
K
purchase stock at $8.00
per
share until Feb. 25, 1946.
ing to a circular being, distributed
by Otis & Co., Terminal Tower;
Cleveland, Ohio. Copies of tho
interesting circular may. ±>e hat]
from the firm upon request, r;.-
Current Markets
,
Warrants
.
Gisholt Co. Interesting
on
*
—
Said
—
Quoted
Bonds
'
'
11
*'■
.
|
8
Description Circular
V :v" ■'
SECURITIES
""
Preferred
Stocks
'
Regular Stock (6-1634
,
Bought
\
-.
WATER WORKS
Red Rock Bottlers, Inc.
Gisholt
Request
attractive
LUCKHURST&CO.
Members N. Y.
Security Dealers Ass'n
60 Broad St
Tele. 1-T825
N. Y. 4
Machine
Co.
offers
an
•'
Request
i
v
,
,
.
Information
Inquiries Invited
Established 1914
Members New York Security Dealers Association
74
Statistical
Complete
Horr, RoseS Truster.
situation,
esting memorandum may be obf
tained upon request from Herzog
Co.
on
i
according to
a memorandum prepared by Herzog & Co.,. 170 Broadway, "New
York City.
Copies of this inter¬
&
..Circular
CRAIGMYLE, PINNEY & CO.
Trinity Place, New York 6, N; Y.
Telephone:
BOwIing Green 9-7400
Members
Teletype:
NY
1-375
ONE
New
WALL
York
Stock
Exchange
STREET, NEW YORK 5
^
& FINANCIAL CHRONICLE
THE COMMERCIAL
m
■/'
'
:*T,
\
,.
York Security Dealers Association
Members New
74 Trinity Place,
The
UTILITY
RAILROAD
Heating & Lighting
Long Bell Lumber
\*
>"•'
INDUSTRIAL
SAFETY CAR
,
1-376-377
N. Y. 6—HA-2-2400—Teletype NY
Safety Car
'
Thursday, July 22, 1943
PUBLIC
Troster, Currie & Summers X:,
:
HEATING AND
Company, Inc.
MUNICIPAL
LIGHTING CO.
New $5 Par
?
BONDS
capital stock
Remington Arms
Wires
Private
Buffalo
to
Cleveland
-
NOW_ THE THIRD LARGEST
-
Detroit
Bought—Sold-'—Quoted-
fy'>
Pittsburgh
-
Bought
St. Louis
-
Sold
—
—
an
York
New
Stock
Members New York Stock Exchange
1529
Exchange
Walnut
,
,
Bell
70 Pine St., New York 5, N. Y,
Phila.
Telephone: DIgby 4-1515
Philadelphia 2, Pa.
—
W. 6th
Bought
N. Y.
DI
L V
14
capital stock of Safety Car Heating & Lighting Co., Inc., is a good
case in pointy
This company has no funded debt or preferred stock outstanding.
,
(
,
Send for booklet
.,'v
It has been in existence for 55 years and has
America"
"California and Bank of
Eastman, Dillon
All Texas Utility Preferred Stocks
v*.;
5, N. Y.
boats
out¬
ness
tinctly
favorable
the
at
a
post-war
market
over-the-counter
•
r
-
...
\
,
'
*
«•
This
ocmopany
.;"XX:y^
CRUTTENDEN & CO.
Members New York Stock Exchange
Telephone
G7Uj Chicago
'
Dearborn 0500
Teletype
,,
Chicago 35
Wires
209 South La Salle Street
i.
Chicago 4,
Illinois
.
„7
-
on
X
San Antonio
-
PORTLAND, ORE.
PORTLAND
na¬
or-*
y
'
'
" *
and **>!• X:X ?
•
■:
An
NORTHWEST
its installed
on
contract
SECURITIES
or
call. It is understood that rel¬
atively
stable
placement
for
demand
re¬
parts,
continuous
with
Camp & Co., Inc.
Investment
Securities
X
Tenth Floor, Porter BIdg........
,
Private
Direct
Stock Exchange
a
service
and
in conjunction
servicing, pro¬
vides an important stabilizing fac¬
tor to offset the highly cyclical
side the railroad field in connec¬ aspects of the business.
>
The earnings record of the com¬
tion with industrial, marine and
diesel engines.
Through wholly pany ilustvates the presence of
!or partly owned subsidiaries, the high earning power in good years
r
(Continued on page 322)
Company has an important stake
•
■
through
on
sales
equipment, either
Axle generat¬
ing equipment, electric controls,
lighting fixtures, fans and electric
regulators are among the items
produced.
Company's regulators
have a wide variety of uses out¬
interested in offerings of round amounts
are
carried
rived from servicing
way passenger cars.
We
DALLAS, TEXAS
Houston
important part
of the company's business is de¬
manufacturer of
Chicago Stock Exchange Issues
is
ganization.
is the leading
lighting and airconditioning equipment for rail¬
-v.s
,
a
••
■.
Southwestern Securities
airplanes.
tion-wide
price to yield approximately
7%.
'
•v
and
on
RAUSCHER, PIERCE Cr CO.
Manufacturing plant is located
at New Haven, Conn., and busi¬
in
15 Broad Street
dis¬
look, the stock'is currently quoted
New York
With that record and with
us
paid dividends in 52 of
During the past<$>10 years earnings have averaged in the production of heating and
$5.72 per share and annual divi¬ air-conditioning
equipment
for
dends have averaged $4.10 a share. railway
passenger
cars,
buses,
Co.
•
Check
the last 53 years.
&
X,;
[ Dallas Ry. & Terminal 6% 1951
Investors who leave the beaten path in their search for attractive
are often well rewarded for their efforts.
On its record, the
'
\
Republic Insurance
;
So'western Pub. Serv. Com. & Pfd.'
Safety Car Keating ! Lighting Co.,
:
securities
Common Stock
Quoted
—
Dr. Pepper
4-1527
St., Los Angeles
Sold
—
PH 265
Southern Union Gas Common
Association
National Trust & Savings
St.,
Teletype
RIT 4488
530
Bank of America
•
V
Milwaukee
Boston
DALLAS
BUCKLEY BROTHERS
Members
X
■/,.
XXXy';.
Chicago
New York
BANK iN THE UNITED STATES
active trading interest in
INCORPORATED
XXfe''
Quoted
E. W. CLUCAS & CO.
XX;v We have
CALLYN^COMPANY
*
,
to—
East and
Teletype P. D. 90
PORTLAND, OREGON
ST. LOUIS
West Coasts
V
New Horizons
Says Profit System Not Perfect
The Pure Oil Company Geologists Meet The Increased
Demand For Petroleum Products
But Neither Is World
CO.
^
SAINT LOUIS
America's Reserves of Crude Oil In The Ground Are
509 OLIVE ST.
Suggests Lamont and Benet Swap Places and Report
Editor, "Commercial
ST/x
Being Drawn Upon More Rapidly Than They Are
Being Discovered
& Financial Chronicle":
Bell
Interesting to "listen in" on the exchange between Mr., Lamont
In an interesting announcement entitled New Horizons, published
published in the "Chronicle" of July 15. ^ As I under¬
stand it, the former points to the advantages of "the profit system," elsewhere in the "Chronicle" today, The Pure Oil Company tells howso
called; the latter points to its defects.' So, what? ■ ■ The same its geologists and production engineers have accepted the challenge to
advantage and disadvantage is in pretty much everything.
"Com¬ supply the oil we need for war and for civilian needs now and after
System
Teletype—»SL 80
and Mr. Benet,
All things
was called by New England's Emerson. ;
have the defects ot$>—
——
pensation" it
said
ore
to
"Fire
burns,"
drown,"
etc.
Mechanisms—capitalistic or com¬
their
qualities.
"water
-
may
munistic—are
in
That
ruthless.
Canada Approves
the
Div. Tax Convention
aspects
nature of
mechanisms, systems. Would Mr.
Benet do away with hammers be¬
cause he banged his thumb!
Our
system has one great advantage.
U. S.
The
Canadian
of
16 a bill
adopted on July
mons
our
nation
regards
are
ishing but The Pure Oil Co.'s re¬
below ground were greater
at the end of the year than at
Oil
beginning of 1942.
Company employs
more
than
skilled
100
1
•
t
',
■
r
.
'X
The Pure
staff of
Louis Stock Exchange
' /'
Interesting Situations
Norwood School Budget
Includes
In Reorganization Rails
$72,000 For
In
view of the recent
Court decisions in the
Debt Service
a
geologists
Members St.
"herculean task" because the oil
as a
dimin-^-
serves
the
of. Com¬
House
,
,,
This the company
reserves
some
is
the peace.
Supreme
cases
of the
"St. Paul" and the Western Pacific
,
The Norwood Board of Educa¬
railroads, which have drawn
con¬
and the management generously tion has approved its 1943-44 bud¬ siderable attention to the railroad
and gives its geologists full credit for get, which totaled approximately
reorganization field, E. W. Clucas
Miss Emma Jungbluth, & Co., 70 Pine Street, members of
protocol between Canada and the the outstanding record in explora¬ $555,000.
It is our way, and still evolving—
United States, signed at Washing¬ tion, expansion and development treasurer-clerk of the board, said the
New
York Exchange,
have
it works.
Let "L" and "B" swap
the [ budget
of Pure Oil properties during the that
was
slightly prepared a booklet reappraising
ton March 4, 1943, agreeing on a
places and report.
<
ratifying
tax
a
convention
.
L.
E.
X
KENWOOD,
Glenside, Pa.
July 20,
1943.
maximum
tax
the
past 28 years.
The bill
was
spon¬
Gib¬
by Revenue Minister
in
increase
ground.
With
son.
through
year,
'
r
oil
tables and stadia
geologists of the Pure
Oil Co. are "sherlocking" the na¬
tion, coast to coast, and from the
plane
rods, the
In Associated Press Ottawa ad¬
STOCK mMETBOOm
vices it
IS on ITS WRY!
billions
The
of
"The
INVE$T0RS-5|2°
A NEW BOOK FOR
dollars
injected
into
the country because of
huge
war
expenditures
constitute
the
major
force
that is
creating
the
Boom.
The greatest of all Booms are
the
economy
of
the
caused
those
cludes
boom—44
with
tin.
OF
copy
by
This forecast in¬
stocks
lead
to
8%xll in. cost $1.00
current weekly Market Bulle
Technical
Correction Due.
STREET,
"Dept.
SCHOOL
14,"
Pa.
also reported:
convention
was
debated
Canadian. border
to
the
Gulf
of
Mexico, in search of new oil-pro¬
ducing
areas.
With
magneto¬
Commons by a resolution adopted meters and seismographs they are
manmade earthquakes
June 8, 1942, but Mr. Gibson said injecting
deep into the sub-surface strata
the Justice Department had ruled
of
and
approved
that
the
in
the
House
of
be
by
already active
an
ratification
must
act of both houses rather than
the
pages
WALL
risburg,
wars.
selected
195
was
by resolution.
through
all
The measure went
stages
without
de¬
of
"New
fields in
Horizons."
There
quest
is
horizons—deeper
the
school
studies
reorganization rail bonds and list¬
ing five issues which they believe
offer attractive possibilities at the
curriculum.
board with two-thirds of the cost
of the schools' vocational training
programs.
She said, also that the
budget included the retirement of
and
interest
bonds.
on
*
N. Y.
Analysts To Meet
The New York
oil-bear¬
Society of Secur¬
ity Analysts, Inc., at their meeting
on
July
28th
will
be
addressed
by Wheeler McMillen, Editor-inof
"Farm
"News & Views"
The
current
issue
of
XX
"News
&
Views" being
distributed by But¬
$72,000 worth of ler-Huff & Co. of California, 210
<'YV"
West Seventh Street, Los Angeles,
Calif., contains recent
develop¬
ments and interesting memoranda
ing formations"—wherever that is
Chief
possible today.
subject of Chemurgy.
Journal,"
Har-
bate."
.
She pointed
no
question but that the Pure Oil
production men are drilling to
"new
to
years
classes in
similar
present time. Copies of this inter¬
out, however, that the esting booklet may be had upon
.^X-^..y State of Ohio would reimburse the request from E. W. Clucas & Co. X
below
reserves
...,,,
and
work
added
previous
additional
of
because
war
for
than
higher
.
the efforts
country of origin on dividends of these
men, Pure Oil Co. was
earned in ,one> country and paid
again able to show a substantial
sored
THE POST MR *
in
15%
Last
in the other.
*
of
on
the
on
a
number
of
insurance
com¬
panies which offer attractive pos¬
sibilities, according to the firm.
Copies of this release and a circu¬
discussing the situation in
American Surety Company may
lar
be had upon
Huff & Co.
'request from Butler-
t«w»«MUNNMMM*il>i»s* ff'i
Volume
jar;:;RAILS
V V;
Railroad
Inquiries Invited
xx''1:
301
-Defaulted Railroad Bonds
REORGANIZATION
'
<f.< ';"»r DtiuMu M».«««<»
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
158
■#-» M.
Reorganization Securities
Bulolo Gold
Dredging, Ltd.
Kerr Addison Gold Mines Ltd.
1 "
Macassa Mines Ltd.
NEWBORG 6- CO.
New
York
New
York
Stock
Exchange
Exchange
Curb
Baltimore
•
New
Cocoa Exchange
Coffee
York
New
... v
Stock
Exchange
Exchange
Chicago Stock Exchange
Philadelphia Stock Exchange<
Pittsburgh Stock Exchange
St. Louis Stock Exch. (Assoc.)
Salt Lake City Stock Exchange
Boston
York
New
•
•
i
.
Sugar Exch.
Exchange V
.....
V
'
.
61 Broadway
-
Using the Erie Railroad to exemplify the" fundamental change
appears to have been made ;in financial policies of railroads,
giving evidence that once again the carrier issues, over an extended
period will be a popular and profitable investment medium, The
First Boston Corporation, 100 Broladway, New York City, has pre¬
pared a study of the changing railroad picture. Noting that the final
decade of the nineteenth century <S>
tion a capital expenditures fund
which .was
punctuated with
a
series; of railroad - receiverships, is provided expressly for financ¬
led into a period during the first ing improvements, acquisitions or
that
erally satisfactory and rails as a
were profitable investments,
the brochure draws an analogy
between! that pattern and that
class
in
traced
of
the
the
1930s
lie ahead.
what
::
now
of
out
Service Flag Rally Fails
bang.
picture that
attempting to disregard the
presence of such future problems
There
not
has
been
future in court
ions
in
single
a
an
investment
individual
It
medium
suited
requirements."
The
most
inflated
is pointed
out that the Erie
Railroad, as reorganized, well ex¬
emplifies the new form of rail¬
road capitalization.
Having sur¬
vived
first
the
of the
years
de¬
pression
and entered bankruptcy
in 1933, not primarily because of
inability to meet interest charges,
but
because
Finance
extend
the
Reconstruction
Corporation
refused
without
credit
to
guarantee
of the owner, Chesapeake & Ohio,
it might have appeared that the
Erie
reorganization could
support a moderately large debt
structure.
On the contrary, the
Erie affected a large decrease in
capitalization and fixed charges,
and
tion
remained
noteworthy result of
treasury positions is
and
two
heroes
seamen
loudspeaker system.
ers'
over
a
The work¬
families
ally brought at least
accord
the
among
in
OF
a measure of
warring
the reorganization
conclusion
the
of
Corporation's contribution to
Soldiers'
New
and
York.
several
Sailors'
The
hundred
contribution.-
v
the
Club
workers
dollars,
of
added
to
this
.
upon
operations
have
since
produced
reorganiza¬
still further
improvement.
Not
only
,'C ,
fixed
were
Cliffs Corp. Looks Good
The
current
situation
interest
Cliffs
Corporation offers interesting pos¬
sibilities, according to a circular
just issued by Gillis-Russell & Co.,
Union Commerce
bearing debt and charges cut in
half, but all newly created issues
in
Building, Cleve¬
land, Ohio, members of the Cleve¬
,
enjoy the benefits of sinking funds
or
serial
maturities
and
in
addi¬
land
this
Stock
Exchange.
circular
be
may
Copies of
had
on
re¬
quest from Gillis-Russell & Co.
OF
MEDIUM
WILLIAM
GRADE
St., N. Y. 5
Bell
RAIL
BONDS
40-70
IN
C0i
HAnover 2-0980
Teletype NY
New York
reorganization, and their con¬
is certainly supported by
logic.
Reorganization is not de¬
signed as a punitive process and
the
cash
in
Toronto
WALL
1
WHitehall
St. Louis-San Francisco
STREET, NEW YORK 5,
3-3450
Teletype:
NY
Descriptive analysis
even
from
„To
MINNEAPOLIS &
the
on
prop
(in reorganization)
Minneapolis
¬
should
have
Iowa Central
Iowa
Des
itself
cash
of
change
interest
as
and
in
allows
need not
the
•
•
a
deaf
ear
Three
vanced
to the
proposals.
roads
debt
ad¬
Pacific
the
to
District
Commission.
fact
that
virtually
all
The
original
Rock
Island
has
already
been
plan
turned back by
the District Court.
The new proposal would leave
non-equipment debt unchanged
get¬
retirement.
originally,
money
and
from
the
level
and
would
total capitalization
duce
that
sible
by
paid off. Un¬
is
set
the
on
Commission
the
definitely
point of leaving the
one
date
the
Commission
old
claims.
Missouri
The
Pacific bond
holders, however, are
also requesting a sizable increase
in debt above the level originally
proposed by the Commission. The
increase
would
$42,000,000
would
and
of
in
be
amount
to almost
which
$3,331,032
fixed
interest
debt
$38,555,620 in income bonds.
The Missouri Pacific
proposal also
contemplates giving the old stock
holders
some
re¬
some
It hardly seems pos¬
$11,000,000.
The
originally set by
Commission
the
new
participation in the
company, a
(Continued
point not touched
on
page
323)
could
bond
find fault with this
either actively
or passively in accord with recent
proposals for cash distributions
and
setting
ahead of effective
dates of reorganization plans ap¬
holders' groups are
Paul
St.
proposal
cash to pay
back
off
interest,
a
to offer them a good chance
in their petitions be-
terest
quite
proposal. The
would
utilize
large amount of
but
the total amount of
success
would reduce
new
Mohawk & Malone
fixed in¬
Railway
substantially due to
Special Master has been
that the Final Report of the
submitted to the Court in a form practically identical to his
draft report, we
feel that
our
Guaranteed principal
and interest
by Now York Central R.
study of the
K.
..
; :
^
BOND
BROKERAGE
-.
f;
v ;
SEABOARD AIR LINE
^
is
SERVICE
more
request.
Specializing in Railroad Securities
timely
than
ever.
Copies
gladly
'
...
;
furnished
WALL STREET
NEW
YORK
120
.
TEL.
'
HANOVER
2-1355
TELETYPE
NY
1-1310
;
upon
co.
specialists in rail«
5
(Unlisted)
»
1. h. rothchild &
ONE
to
meet bank loans since
the
have
plans for cash utilization
Court and the St. Paul and Rock
That is
a provision for additional contin¬
gent sinking funds, generally pro¬
viding that an amount equal to
any
common
dividends be set
for
new
less
in the past week or ten days—the
ting popular these days.
aside
reallocate bonds
to
provided for
An important con¬
major
Missouri
of the
is
payments of equipments and fail¬
unchanged there
hardly be legitimate objection$ to this proposal.
sideration ,;js that the measure of
4 The Missouri Pacific compromise
accord that is now evident should
plan .is decidedly different than
eliminate the danger of further
either of the other proposals. As
prolonged litigation such as is in the other cases it is
proposed to
promised if the Commission turns use cash to
satisfy a portion of
provision,
consummated,
is
Teletype BS 250
could
designed
protect the interest of old
ization
:
:
Y
New York 5, Ni Y.
Teletype NY l-8y7
Bell
fore the ICC.
senior bond holders after reorgan¬
pears
'
,
Dodge 4s 1935
Island to the Interstate Commerce
other
•also to
for
Fort
effective
plans. '
One
0425
,
old
other features
1951
&
Wall Street
63
any
on
4s
Central
Moines
Incorporated
distribution
involve
CAP.
^JUjY^Telepl^^
1938
ure
jection to moving them forward.
in
5s
Frederic H. Hatch & Co.
ob¬
no
148 State St., Boston, Mass.
Tel.
Minneapolis & St. Louis 5s 1962
unrealistic
general feeling that the
Commission
1932
Minneapolis & St. Louis 4s 1949
completely
a
& St. Louis 6s
Minneapolis & St. Louis 5s 1934
reorganization date has arbitrarily
there is
request
on
<
ST. LOUIS RAILROAD
mortgaged proper¬
deny the mortgagee his
proven
4»/2S, 1978
;
1-2080
the
3V2S, 2002
Members New York Stock Exchange
I
RANGE
PRICE
LEROY A. STRASBURGER & CO.
treasuries,
though stemming from un¬
and
admittedly transitory
conditions,
represents
earnings
now
Now
Mclaughlin, baird & reuss
'
1-395
Montreal
THE
fac¬
cases.
Lawrence Corp. Ltd.
BAST SMITH &
BLOCKS
of
bonds
$2,000 at the
ceremony, the
OFFERINGS
52
fin¬
tention
Henry Smith, company secre¬
tary, turned over to Commander
check for
Consolidated Paper Corp. Ltd.
Minnesota & Ontario Paper Co.
ized prior to actual consummation
This
a
this
to
Co.
Company
Virtually every group is in agree¬
ment that the cash should be util¬
provided an official
audience for the speakers.
Gessford
Interstate
INTERESTED
SIZEABLE
their regu^
the arbitrary effective dates have
at
jobs, hearing the speeches by
Lt. Comdr. J. Douglas Gessford
the
answer
Brown
r
Supreme
recent
St.
ARE
IN
that in most instances it has
tions
WE
cases.
„
lar
>
by
Quebec Pulp & Paper Corp.
.
workers
to
*
Abitlbi Power & Paper
ICC decis¬
one;;or' all of the three
major pending
the
or
.
,
Teck-Hughes Gold Mines Ltd.
perplexing question must n,ow be
the reasonably
at the Albro been set, at a date in the past, be¬
as
smaller traffic in peacetime;
Metal Products Corp., 944 Longr. fore the cash was coming in so
revived
competition from other,
fellow Avenue, the Bronx, since fast, does not appear equitable.
f
modes of transportation and con¬
the company went all.outTor war
If the cash is turned over to the
tinued high taxes, the opinion is
expressed that the "realistic atti¬ production and the 100 workers reorganized company for use at
their
record clean,; even the discretion of the new man¬
tude of railroad management and kept
the ICC, the improvement in oper¬ though the navy itself sent of¬ agement there could be no assur¬
ficers to hold an incentive rally
ance
that it would not be used
ating efficiency, and'; especially
'
'
\
X
the modern policy of debt reduc¬ at the plant.
largely for; the benefit of old
The occasion was the dedica-r
tion, all are indicative of a change
junior
bond
holders,
possibly
tion of a service flag honoring the
that permits the careful investor
through dividend distributions on
to find among railroad securities plant's 12 men in service, but the the new common stock.
Now that
his
clarified
not
was
erty merely because "an effective
of .^idleness
hour
Premier Gold Mining Ltd.
forthcoming. ,y in
ties.
War Plant
Not
1-310
This is the major aspect of the entire
a
right to the earnings
;
Teletype—NY
Court .decisions, nor by any
actipn on the part of
Commerce Commission. Inevitably it seems that the
.derived
To Halt Work At
may
*/•;
;
Bell
,
usual
receivership period
and
reduction
debt
additional
earnings, all of which is seen as
assuring the continuation of or¬
derly debt retirement.
gen¬
were
Noranda Mines Ltd.
Pioneer Gold Mines Ltd.
New York 6
,
The drive by railroad security holders to
get their share of the
cash balances during the
reorganization process has
Study Sees Carrier Issues Again Popular
.and Profitable Investment Medium:
earnings
;
.
accumulated
First Boston
when
.
Hi! Railroad Securities i
Tele. NY 1-2972
near
three decades of the present cent-
«
.
Ventures Ltd.
Exchange
Chicago Board of Trade
Chicago Mercantile Exchange
Commodity Exchange, Inc.
Winnipeg Grain Exchange
Erie Railroad Exemplifies Fundamental Change
In Financial Policies Of Railroads
tury
;
Telephone—DIgby 4-4933
reorganization
,
,
Exchange;
finally opened with
•
•
Members New York Stock Exchange
,
Produce
York
30 BROAD ST.. NEW YORK 4
HAnover 2-6540
-
&
Cotton
Mercantile
New York
Stock
v
,,
New York
<
PFLUGFELDER, BAMPTON & RUST
.wL:...
■.,
MEMBERS
v
Macleod Cockshutt Gold Mines
'Broadway
n. y. c.
63
5
~
COrtlandt 7-0136
Adams & Peck
Tele. NY 1-1293
Wall Street, New
BOwling Green 9-8120
Boston
Philadelphia
York 5
Tele. NY 1-724
Hartford
v
THE COMMERCIAL & FINANCIAL CHRONICLE
302,
Ohio Brevities
Cliffs
Corporation
"
*■
Circular
Request
on
r
,
;
point of $1,535,276,568, a gain of about
31 and oveje?375 millions from June 30
: Total
assets vaulted
to the* ^
Cleveland Stock Exchange
Commerce
Union
Teletype
-
Bldg.,
L D
Cleveland,
months
O.
from
Cherry 5050
CV 565
500
v
-
in
to
bond
$898,716,755 compared with $744,789,530 on March 31 and nearly
double the $462,214,721 a year ago.
Cash
Bank
National City
Cash
..
On
quarters, turned up 21
$346,344,160.
past few
of Cleveland
to
dropping over five millions to
$313,954,364. This item was near¬
er,
Analysis
on
request
the
In
total
last
footings
equalled
first
quarter, the bank's
attained the .'un¬
of $725,155,328, the
700-
sum
million mark at
total
$418,288,386.
increased
assets
OTIS & CO.
ESTABLISHED
Y
major banks. \
peaks were
scored1 in the same items,- except¬
189!)
Cleveland
v
Phone
Bell Teletype
CHERRY 0260
ing two which
CV 496-497
Cleveland and Ohio may soon see
billion-dollar bank.
(its first
biggest in the State, which has
advanced from
20th to 19th
Wellman Engineering Co.
Mohawk Rubber Co.
the
in
position
largest
nation
rapid
strides in the past three months
and, judging from its perfor¬
U. S. Truck Lines, Inc.
past
the
in
mance
made
March,
last
since
trict
War
Finance
¬
Committee
in
Mr. Parish did
World War II.
an
outstanding job in assisting these
committees
to.attain
position in the
enviable
an
December 1942 and
April 1943 drives.
i
^
J
.
•».' V
■
■
Cleveland Bond dab
year
of
the
is that the other
real estate owned classification is
this
.
At one time
four millions.
carried at $96.
item
Society
over
was
Ejects New Officers
registered-gains in all
levels' in its, his¬
CLEVELAND, OHIO—John D.
Burge,.. Ball, Coons & Co., has
of $133,251,-
deposits of $123,694,059., and
U. S. Governments of $45,928,500.
Union Bank of Commerce, fast674^
:
soon
(Continued
Co.,
Mr.
manager
the
E.
trading
department/ of
Neubauer & Co.
Y *
Cincinnati School
Budget ];
$8,000,000
^
Calls For
An
<
operating and maintenance
budget of $7,920,727 for the com-'
ing
school
year
was
adopted
unanimously by the Cincinnati
Board of Education at its
recently
tion
meeting'
the Board of Educa¬
in
Building,
216
Ninth
East
Street.
303.)-
on page
Lucas
County Sales Tax
Income
Sales
Higher
tax
been-
President
elected
ing- Wilbur
F.
Kurtz & Co;.
Other
-■
Kurtz
•; \
•
...
officers
-
Herman
J.
Coolidge
Lucas
June 30 totaled $1,710,630 com¬
pared with $1,691,547 in the > first5
it
Don
Ebright,
urer.
a
year,
gain of 1.1%,,
Y disclosed in the report of /
was
;YY
V
Ohio
'
'
Treas¬
State
•
•
>
" '
,
: '
•
the
of
Bond- Club of Cleveland,
in
revenues
County for the six months ended
v
items • with best
tory set in resources
associated
previously
was
half of last
|y
Yet
announced
healtiest ; signs since
depression
the
become
I. Griffiths &
Commerce Building.
.
—MB—-—
'
Society for Savings
now
the
Cleveland Trust Co., now
Sign
Healthiest
•
-
one
banks,
individual
the
Among
help
extremely
was
ful to>the Fourth District Victory
Fund Committee and to the Dis¬
t
failed to set highs
assets.
in
.World War I
has
1
experience in the days of
Liberty Loan
activities in
the
Chronicle)
Ohio—Harry N.
War
the
'
Roy D. Moore, Chairman of the
.War Finance Committee for Ohio,
who was appointed to this post
De¬ by the Secretary of the Treasury.
to
$365,749,988 along with Govern¬
In seven ment holdings of $222,679,000.
institutions,
smaller
"
reported
at record highs in
five
the
(Incorporated)
Terminal Tower
were
attention ; to
Drives.
millions' ;to
42
30, 1942. $399,545,357 in the quarter.
Deposits, total assets and Gov¬ posits' made-a similar gain
ernments
particular
Financial
I' "Mr. Parish will work under Mr.
Cleveland,
in.
largest
J.
second
Bank,
City
National
of
Loan
094,593 a year ago. Deposits rose
72% millions to $682,419,985 and
Governments were
up
over
68
millions to
of
Committee
The
George
Union
•./His
with $57,-
ly 43 millions under June
'
tl^e War. Finance
This
call date.
a
Fischer
the State of Ohio. ..He will devote
71 millions above
over
was
with
staff of the State Headquarters ol
it has passed the
time
Fischer,
District, has joined the
consulting
and / administrative
Millions '?
700
Pass
to
CLEVELAND,
Committee of the Fourth Federal
• 1:1y '
'
continued low¬
Loans, however,
'
(Special
'
Reserve
billion- j
select
'y>Y; v
March 31 and compared
Up
Turns
sliding for the
hand,
on
millions
Hand
the
reach
.Resources
:'
\
holdings
climbed sharply
banks
these
New York City
' \
year ago.
a
Government
Open Wire to Troster, Currie & Summers
■
'' rY
dollar class.
increase of 166 millions
Oeo;* Griffiths & Cor
Victory Fund Staff
iL. L. Parish, Assistant Executive
Manager, of
the
War
Finance
to an all-time high
170 millions from last March
last year.
will
$1,652,639,596, an
in three
and over 393 millions
record total of
*
i
Harry Fischer Joins
-
...
mark for the first time in history,
mid-year condition statements revealed.
Y i:
Deposits for the five institutions soared
cnusffinussEUA
Members
deposits in Cleveland's five largest banks
and
resources
the billion and a half
L Parish Joins
.
s
Total
exceeded
Thursday,-July 22, 1943
succeed¬
of W. F.
Y .■Y ;... ■'.
•
Trading
Markets .in
.
elected
were
Marathon Paper
McDonald-
Sheed.y,
&
Co., Vice-President;
Paul
J.
Eakin, Hornblower &
Weeks, -Treasurer,
and
W. B.
Carleton, Fahey, Clark & Co.,
1
Secretary.
y
Y Y,Y
Mr. Burge came to Cleveland
Mills
Philip Carey
U. S.
Printing & Lithographing
Cincinnati Bank Stocks
,.
from Massachusetts in 1927 and is
Cayrie, Ralston & Go.
2027
I
Commerce
Union
THE CHANGING
'
FUNCTION OF A BANK'S
19.8% of assets,-while in¬
jumped to 49.6% of
to only
vestments had
Cleveland Trust Co.
■
Nat'f City Bank
*1942, as every > banker
this declining trend in
knows,
investments
loans and- increase in
of Cleveland"
weekly re¬
six months of 1943 the
cities show a further
Common
investments
Merrill, Turban & Co.
of
in Y 101
banks
member
porting
increase
16.7%
over
in
the
1942, and a
further decline in. loans of 8.1%.
Nor is that the end of the trend,
total
Dec.
for
31,
•
Investment Securities
Commerce
for
Bldg.
V CLEVELAND, OHIO
Tel.
Main 6800
Teletype CV 67
banker expects his de¬
every
posits and his investments to in¬
crease further and, if he is frank
light'. of( the
the
in
having to convert
secondary reserves into pri¬
possibility- of
his
mary reserves.
>
function,of
bank's invest¬
part of a
large
a
come.
serves
has
it
is
account
ment
produce
to
Of course, this
as
in¬
Cleveland
Bank Stocks,
vastly
up
debit
v
posits
investments on the
ledger and de¬
of the
side
on
the
side.
credit
banks will continue
to
That
buy huge
need
•
Ledogar- Horner Co.
Exchange
Union Commerce Bldg.
>\
CLEVELAND
Cherry 3800
Teletype CV 383
reserves,
trend is
average
of
a
change in the function
a
bank's
past this
investments.
function
was
to
In
the
act
as
bank.
One
thing
seems
certain, however: for the average
bank its municipal bond account
need not be considered as second¬
ary
a
now
standards
election
be considered
of
a
source
loans.
ranted
and may, therefore,
merely in the light
of income
to replace
This conclusion seems war¬
because of the small per¬
centage of total assets which the
One
an
nicipals, and because of the vast
on page
303.)
-.v*:*
on
in /incomes
of
Com.
by
84.94%
784 for and 139
The
next
Council
to
v;Y.
new
higher
pay
New
expenses
v
*
Tel. Main 4884
Tele. CI 68 & 274
OFFERINGS
WANTED
Ohio
Kentucky
-
West Va.
•
school
jority, received a
of >83.91%—772
for
Municipals
;1
in School District No. 4.
simple ma¬
favorable vote
a
148
and
''Y->"Y;;'Y>Y;>:'
;Y'THE
WEIL, ROTH & IRVING
against.
COMPANY
Ohio elections
now are
held
un¬
Y
/Member Cincinnati Stock Exchange
der State
time, which is one hour
slower than the Eastern War Time
adopted by. Cincinnati and Hamil¬
ton County.
This meant that the
BONDS
municipal-corporation
DIXIE
o'clock state
~
county time.
TERMINAL
BUILDING
cincinnati
from 6:30 to 6:30
time, or 7:30 to 7:30
were open
o'clock
Building
the
meet
current
This levy., needing,
Terminal
CINCINNATI
an
to
meet
Exchange
York Curb Associate
Dixie
roll.
.
levy will make funds
to
Stock
Cincinnati Stock Exchange
The vote
increases will be
revenue
The other
available
MEMBERS
York
New
of the
ordinance
fixing the rate of increase, Mayor
Joseph; A. Shottelkotte said. The
city can borrow in anticipation of
the
s
Pfd.
& 6%
W, D. Gradison & Co.
against.
pass
5%
Gruen Watch Co.
step in actually pro¬
for the
viding
&
ap¬
living costs. Need¬
65% favorable vote, this levy
favored;
Municipals
Philip Carey Co.
$100 of valuation.
voters who cast ballots.
for
Ohio
added
an
meet increased
a
Territorial Bonds
time
July
levy will provide funds for
increase
an
bank has invested in mu-. polls
(Continued
at
levy amounts to
5 cents for each
was
of government bonds is
commonplace. The expec¬
tation is quite logical, therefore,
that deposits and investments will
rise considerably further.
>
One
important effect of this
amounts
conflicting
'
156
Land Trust Certificates
1944. fiscal
election;: under
be invest¬
may
but all investments
not be secondary reserves.
ments,
dividual
1433Tele. CI
v
in Hamilton. County's first
years
im¬ ing
more
The portion of the investment
himself,, his loans to decline
account which should be consid¬
further, at least in proportion to
his growing assets. As is generally ered as secondary reserves and the
understood by now, this increase portion which should be consid¬
in deposits and investments is due ered as a source of income, to re¬
principally to the purchase by the place the decline in revenue from
banks of U. S. Government bonds. loans, will depend upon the par¬
Such purchases result simply in ticular requirements, of each in¬
writing
Bought—Sold—Quoted
levies for the 1943 and
was
reserves
Main
St/Bernard voters overwhelm¬
portance than it formerly, had as
a source of revenue.
Now, all sec¬
ondary
Phone:
account.still proximately 70 city employees to
secondary reserves, but
assumed
with
Member Cleveland Stock
Union Trust Bldg.
ingly approved two half-mill tax
15. Each
■
Today, however, the
For the first
has continued apace.
M. A. Hanna Co.
Union
:
Approve Additional Levies
v
secondary reserves. In those days
the conservative banker made his
investments
1
total assets.
Since
:
Cleveland.
St. Bernard Taxpayers
(Continued from first page)
.
V
in
CINCINNATI 2, OHIO
MUNICIPAL PORTFOLIO
Teletype CV 348,
'
<
Clair S. Hall &* Co.
well known in business and civic
affairs
Bldg.
CLEVELAND
,
Cherry 7^45
Municipal Comment S
Ohio
Member Cleveland Stock Exchange
•
We Buy
M. A. Hanna Co.
to
New
WIRE
Ohio P. S. Pfds.
York
Members Cleveland Stock Exchange
Bldg.
CLEVELAND
Teletype
New
York
Tele. NY 1-1541
CV-255
Cincinnati
Tele. CI-574
Y
■
:Y;
Municipal Bonds
General Market
For Our Own Account
Municipals
Collin, Norton & Co.
MEMBERS
New
Cleveland
Union Commerce
.
SECURITIES
L. J. Schultz & Co.
ohio
And
OHIO
Toledo Edison Pfds.
(Common)
PRIVATE
OHIO
Hickok Oil
York,Stock Exchange
Stock
Exchange
Katz & O'Brien
(Associate)
Chicago Board of Trade
Associate Members New York Curb
Field, Richards & Co.
Carew
Toledo
Adams 6131
Tele. TO 190
New York
BOwIing Green
9-2432
Union Com.
Bldg.
CLEVELAND
Tele. CV 174
Union Cent.
Bldg.
Bldg.
Tel.
Main 0138
Cincinnati 2
Tower
CINCINNATI
CINCINNATI
Tele. CI 150
Union Central
Investment Securities
Tele. CI 489
Teletype
CI
163
Telephone
Parkway
7340
Volume 158-
THE
Number 4196
COMMERCIAL & FINANCIAL CHRONICLE
WFA
jr 'Ohio Municipal Comment'
r
A BANK'S
THE CHANGING FUNCTION OF
(Continued from page 302)
increase in investments other than
for fear that such
municipals that are better suited
to the requirements of secondary
could
reserves .5
bonds.
v
>■-
Practically
every banker
sees
.governmentbond.: account
grow like Topsy, while his mu¬
nicipal account has declined, at
his
least in relation to his total assets,
and
in
many
cases,, in
actual
,
amount.
that
The FDIC report shows
during
1942 the direct and
government 1 obliga¬
guaranteed
tions
of
the
insured
commercial
banks increased
become
high premiums
realized should it
be
the
sell
to
necessary
Of course, if there is to be
occasion to seir the bonds,; as
no
to be the case with munici¬
seems
this objection has no basis
at all.
If the bonds are of high
quality all of the premiums will
pals,
ceived
and it
over
the
in
realized
be
interest
-
,
'
The Act forbids
re¬
the life of the bonds,
buy high premium bonds because
more funds are put to work, with
cities further increased their hold¬
vestments
ings
of governments 19.6%
the amount held
while
all
other
clined 7.5%.
Dec.
on
over
30, 1942,
securities
,
„
de¬
premium issues.,,
'
place,
one
to
Instructions
AAA
all
to
field
can;
terpretation of the act by the So¬
longer / maturitiesof licitor's office of the
Agriculture
municipal bonds. A banker bases,
Department. '. The Solicitor con¬
the maturity schedule of his In¬
strued the intent of
a
Congress as
indicated by "expressions of Con¬
gressmen at the hearings which
two considerations:
of
calculation
he
when
out, and
need cash to pay
ion of when he may
under
may
an
opinr
want cash to
preceded passage" of the Act.
'
favorable
more
N.
in
E.
his
Dodd, chief of the AAA,
to employees listed
order
The; : firsts > of
these as prohibited practices:
is the more powerful con¬
"1. Furnishing releases, photo¬
of his investments into
for , it ; may
mean
cash, he sideration,
graphic
prints,
illustrations
or
will probably find it more advis¬ whether or not the bank will be
teats to the press. •;
able to convert his government
open tomorrow, while the latter
"2. Furnishing prepared scripts
securities than his municipals. In is
simply an effort to earn more or
transcriptions for radio broad¬
the
government m a r k e t,
the income on one's investment. The casts or
appearing on radio pro¬
spread between the bid and asked former consideration > will deter-,
grams.
1
prices is usually only 1/32 or mine the maturity schedule of. that f
*'3.
;
v
visable
find
it
day to convert
some
ad¬
some
circumstances.
course,
-,
2/32 of
point.
a
In the •nunicinal
market, the spread is usually V2
point to a full point, or sometimes
more. /
Moreover, the mechanics
of delivering and
getting payment
for
governments
is
sowewhat
easier and quicker than in the
municipals.
present
from
one
the
his
on
Finally, at
readily borrow
can
Federal
Reserve
government
Bank
securities
at
U Under such circumstances, what
banker who needed to sell invest¬
to
ments
realize
cash
find it advisable to
would
his
use
not
gov¬
ernments for that
purpose? With
governments making up such a
large part of the total assets of
banks today, the average banker
who finds himself in need of more
cash after he has sold all his gov¬
ernment securities, is likely to be
of business by that time.
out
It
unlikely, therefore, that the
Average banker will be faced with
the necessity of selling his munic¬
seems
ipal investments. Of course, there
are many bankers whose munic¬
ipal/accounts
still
form
a
large
part of their total assets, and in
such
instances
at
least
some
of
these
municipals must; be con¬
sidered in the light of secondary
reserves that may have to be con\erted
into
primary
reserves.
However, such is not the case to¬
day with the average bank,
r - ■
0 This reasoning could have sev¬
eral
logical
effects
upon
a
banker's
ous
the
who
banker
toward
attitude
In
ipals.
,
first
has been
for liquidity
munic¬
the
place,
over-zeal¬
and who has not
bought municipals because
he
felt they could not be sold quickly
enough, can put municipals in his
In
second
the
be
too
place, one need
with the
concerned
marketability
of
the municipals
he buys. Provided again, he
bonds of high quality, he can
buys
well
buy bonds of smaller
and less well known subdivisions,
afford
to
having reasonable assurance that
he will not have to convert his
municipals into cash before they
are paid at maturity.
:
In the third place, one
hesitate
to
pay
hecessary | to. buy
wants.
or
t
money
against
rates, and as a
change in rates,
no
should
ities
hedge
matur¬
diversified
be
or
pending
maturities, der
long
upon
opinion of
one's
when money rates
will rise,
v -
Any banker is discouraged at
thought of investing funds
that in the past have been in loans
the
at relatively
at
bonds
in
rates
currently
munic¬
however,
prevailing for high grade
Unfortunately,
ipals.
any,
the
up over
and
ive
of
The
$278,945,325, deposits of
Governments
following
.
tops
in
smaller
assets,
Governments:
of
ings, ~ Bank
American.
deposits
Lorain
Street
Cleveland,
and
Capital Bank
and Continental Industrial scored
tops in deposits and Governments.
Bonded
of
indebtedness
Cuya¬
maturities hoga (County
(Cleveland), de¬
clined to $39,737,573; as of last
August 1 from $43,890,709 on Au¬
an excellent reserve against even¬
gust. 1, 1940.
It was the biggest
tualities including wide fluctua¬ reduction in any two-year period
found that well chosen
high grade municipals afford
tions: in
ments are
deposits. ; > These, com¬
present: de¬
clining loans and vastly increas¬
in the last 15 years.
,
:
bonds
he
some
can
paying high premiums icai
time,
the
average
today buy high grade
bonds with greater
banker
munic-
freedom.
service
were
using Government
time and money to build up pres¬
for incentive, payments.
the
AAA
officials
the
said
"
with
company
her
ruling
progress
has
progress
would greatly limit the effective¬
heen- consist¬
Mary Foster
Barber
ness
of its
employees in explain¬
ing and "selling" the 1944 farm
program to farmers.
That func¬
years Miss Barber's work has been
tion
has been
in the
shifted
the
to
Ex¬
and
ent
spec¬
tacularly rapid.
For the past few
administrative department
assisting John A. Stevenson, Pres-;
ident.
Previously she was man¬
M. L. Wilson, director of exten¬ ager of sales planning and was in
sion work for the Agriculture De- charge of the preparation of sales
Since join¬
partmerit, said in an accompany¬ promotion material.
ing letter to all State Extension ing Penn Mutual in 1928, she has
tension
ees
Service, whose employ¬
paid by the States.
:
are
,
directors
done
were
education
that
AAA
employees
prevented by the order from
"having
access
and .other
to the press, radio,
public
communication
media."
!
He suggested that the State Ex¬
*
tension-Service
workers
"keep
adequately informed" so
farmers
to
not
as
which
"curtail
the
extent
the-provisions of the
to
cur¬
much
valuable
and
research
in
insurance.
A native Pennsylvanian — her
father, Laird H. Barber, having:
been
a
Congressman and later
President Judge of the 56th Judi-.
cial
District—Miss
Barber
was
graduated
from
Cathedral
School,
D.
C.
rent AAA program would be un¬
"cum
derstood and acted upon by farm¬
ers."
/
'
•
Later
the
she
National
Washington,
graduated
was
lege,
I
An:
accompanying
procedure"
"suggested
for- dissemination
of
farm
program information cent¬
ralizes
in
Washington full and
final authority for the preparation
of press, radio,
motion
The material will be mailed from
laude"
Provincetown
York
and
-
been
in
New
a
After serving as a Yeoman
came
(F)
I, Miss Barber be¬
associated
Editorial
distribution.'
Theatre
has
in World War
millan
to the Extension Service for
Col¬
frequent
contributor to magazines and in¬
surance journals.
Washington to State AAA officers
checking and will be turned
Barnard
Beta
for
over
from
where stje was elected to
Kappa. As an author,
she had a play produced by the>
Phi
picture,
poster and exhibition jnaterial.
with
The
Mac-
Company in New York
Assistant.
One
of
as
her
assignments was the proof-read¬
ing of the well-known "Project
Method of Teaching" by Mr. Ste--
with whom she has been
associated
since
insurance
career
able in 1921.
F.
in the
Cleveland
been made
the
First
a
Davis,
who
securities
for
25
has
business
years,
has
Vice-President
Cleveland
Corp.
of
He
has specialized in municipal se¬
curities
and
for
came
the
past
12
years
she
started
with the
her
Equit¬
/
Luncheon Group Broadens
Scope Of Discussions
The
Tuesday
luncheon group
meeting weekly
3,
1942 to receive
ROTC
instruction
from' George
Chase Lewis, Col. Inf. USA, will
continue
to meet although Col.
which
has
since
Feb.
Lewis
in
He
Bond
Club.
is
a
member
been
,
ha$ been given
change
a
command
will
no
to First Cleveland in
1935.
and, unfortunately,*
longer be available.
>
The character of the discussions
of the
will therefore be
changed.
They
and
topics relating to the
will become broader in scope
Roger R. Clouse, attorney and
formerly acting regional director
of the
is
will include
Home Front.
Meetings
Office of Civilian Defense,
secretary of the board of day, 12:30
now
directors of the
Federal
Reserve
Maiden
are
p. m.,
held every Tues¬
Au Coq D'Or, 129
Lane, New York City.
Bank of Cleveland.
He succeeds R. B. Hays, who re¬
placed Frank J. Zurlinden, re¬
tired, as First Vice-President.
Power & Light Co.
Situations Attractive
The stocks of American
Power
.
Boosted While In Army
Henry S. Sherman, President of
the'; Society for
eral
Insurance Corp. in
supervising mutual savings banks
insured by the corporation.
Deposit
Mr. Sherman will be associated
with
prominent
New
York
the
with
Sherman Chosen
and
&
Light Company, particularly
the $6 cumulative preferred and
;
i Corporal George C, Litzko, whothe $5 cumulative preferred, haveis 38 and had served in nearly all
departments of the Society for attractive speculative appeal, ac¬
]
Savings in his 22 (correct) years
Henry
ing investments in
premiums such conditions will continue for
"
.
intended to emphasize
that, because of the
n
world.
ance
that
banks
should Bank, Morris Plan, American Sav¬
North
an
i
K
ral States
in
Central National, last of the
"Big Five," displayed records in
and
of
American
sure
been
assets
as
committeemen in the North Cent¬
Clarence
Increases Are Sharp
boasted
useful feature.
Finally, these comments
tinction
executive
Throughout
her 15 years'
18 millions.
Savings, is the
government se¬ only Midwest banker chosen to. a
committee that will aid the Fed¬
need not curities, and the probability that
Many bankers have ob¬
jected to
872,480,
in
the country to
receive dis¬
bank*
of
he has no choice.
Moreover, very
'$141,948,247.
These three classi¬
many bankers are finding that the fications showed
gains of 23 to 25
tax
exempt features of income millions.
municipals is a very attract¬
the
Federation
bankers
and
the
- chalked
up Philadelphia
icalL-date tops in assets of $115,- President of the New York State
Mutual Savings Association,
,741,912,. up 22 millions; deposits
■of $103,585,921, up over 26 mil¬
: Promoted
by First Cleveland
lions, and U. S. holdings of $69,new
$259,826,615 and
from
by
(Continued from page 302)
moving
high rates, of return,
the
and
-Bureau
the
women
venson,
spread over a range of years, with
the bulk of the bonds in short,
medium
Congress
Farm
of
one
few
the life insur-
Ohio Brevities
and
portfolio with little or no fear, not be construed to imply that
provided he buys bonds of high municipalbonds do not form a
quality. Since he is not likely to good
secondary: reserve based
need to sell them, he needs only
upon
a
need for cash.
Many
be mindful of quality and ma¬
bankers
have : quite / properly
turity.
not
distributing
.
.
of
case
Preparing,
portion of the bank's investments exhibiting 'motion pictures. *
are
considered secondary
"4; preparing " or
; displaying
reserves, but need have little or
posters or exhibits.
no effect upon that portion of in¬
*
"5. Preparing articles for peri¬
vestments which are intended cp
odicals, or
furnishing articles,
produce income not now received photographic prints, illustrations
from loans.
As already pointed or mats to
periodicals;
' out the municipal account of the i
"6. Preparing or procuring the
average bank need. not be, con¬ printing of popular
publications
sidered as secondary reserves.
bf a promotional nature.
Hence the maturity
schedlule
[ "7. Carrying on by word of
of the municipal portfolio of the
mouth, in individual contracts or
average bank
should be based before
groups, promotional activ¬
upon
the
banker's • opinion of ities for the purpose of enhancing
when money rates will be more the
prestige of the AAA as an in¬
advantageous
to. the / investor. stitution, dr of indoctrinating a
This
consideration
is r far ; less philosophy
relating to the general
stringent than the requirements principle's of AAA programs, or of
for
secondary
reserves,
and building public pressure for or
should, therefore, permit the pur¬ against Congressional action on
chase of at least somewhat longer agricultural measures.? '. U
maturities
in > municipal;. bonds. f An AAA spokesman said .that a
As
a
hedge
against changing
which
groups to
the AAA followed accusations in
individual farmers."
purchase
on
discussions before farm
pay
employees outlining seven speci¬
fic "dpn'ts" were based on an in¬
/.
fourth
the
In
to
better return than on low
re-invest
,
Should any banker
premium earning interest the
same as the principal, and usual¬
a
of Federal
use
the mechanics of a program.
It
the salary or ex¬
penses of AAA information em¬ ,would, he said, prevent a triple-A
man from
defending his own or¬
ployees and restricts all AAA em¬
ployees to the "answering of in¬ ganization against criticism.
The demand for censorship of
quiries or supply of information
funds
the
ly at
f
The War Food Administration on July 20 applied a "gag" to the
;
200,000 State and county employees and committeemen of the Agriicultural Administration Agency, strictly limiting their freedom to
rMiss Mary Foster
Barber, As¬
talk about farm programs.
The order, based on a provision in the sistant to the President, has been
Agricultural Appropriations Act, prohibits both full and part-time appointed,a Junior Officer of The
AAA employees from giving information to the press or radio and Penn Mutual Life Insurance
Co.
from making speeches praising or^
She is the first
criticizing the farm program or strict interpretation of the 7th woman in the
any other act of Congress.In prohibition .would prevent AAA 96
year - old
the company's his¬
United Press Washington advices employees from discussing
July 20 reporting this it Was fur¬ triple-A or farm programs before tory to be so
any civic group and would limit honored
ther stated:,
•
•
and
actually is advantageous to
$19,663,999,000 to
a total of
$40,711,697,000. During
the same period holdings of mu¬
nicipal bonds decreased $118,142,000 to a total of only $3,533,486,000. Furthermore, during the first
six months of 1943, the weekly re¬
porting member banks in
101
Miss Barber Appointed
Applies "Sag" To JIM Employees
§ Under Act Limiting Talk To Farm Programs Junior Officer By
Penn Mutual Life Go.
MUNICIPAL PORTFOLIO
not
303
cording to
a
circular issued by Ira
bank, came home on
furlough just as the bank an¬
nounced he had been promoted to
Haupt & Co., Ill Broadway, New
York
City, members of the New
Assistant Treasurer.
York
Stock
serving in the statis¬
tical control unit of the Army Air
Force Technical Training Com¬
leading national exchanges.
He is
mand
has
now
at Miami
been
Beach, where he
since being
stationed
inducted the first of the year.
of
this
Exchange
circular
teresting
and other;
Copies;
and another in¬
circular
on
Peoples
Light and Power Co. may be
iFrnm the firm upon request.
had
Thursday, July 22, 1943
CHRONICLE
COMMERCIAL & FINANCIAL
THE
304
field,
Providence-Washin g t o n ,
Continental, Hartford- and U. S!
Bank of
Analysis
Bank Stock
loss ratio of these eleven
companies is 46.4%, and their
average expense ratio 47.2%, com¬
Mid Year Figures
New York
Available
1
leadina
4-2525
Dtgoy
Telephone
j
5, N. Y.
7-3500
BROADWAY, NEW YORK
Telephone: BArclay
A.
<L.
REPORTER'S
pared with 95.0% average for
21 companies, while low-loss
,
the
but
REPORT
of the
This Week
—
By E. A.
with the
stocks should comply
com-»
earning
relative
earning
power,
Bought
Analyzed
value, and other factors.
For example, some companies
invest
rising market than
an "equity" company, and by the
same token, less depreciation dur¬
ing a falling market.
Its invest¬
is likely to be some¬
than in the case
what steadier
of
those
York
Vew
'
'
i
A. 279
TELETYPE L.
•
five-year aver¬
and increasing in¬
dustrial dividends.
With regard
to underwriting differences, it is
a matter of record that companies,
which were heavily committed in
the ocean marine field took severe
FIVE YEAR
tion.
1937 to 1941 incl.
Companies with HiGH LOSS
Ten
Earned
months of 1942,
heavy in
risks lost a lot
of
losses in the early
v^hile
volume
premium
•Security
Hampshire
Fidelity Phenix
relatively
Companies which were
Av.
point to another difference among
managements which is reflected
directly in their operating ratios,
viz: the ratio of expenses incurred
"Pro v.
veals
interesting fact.
an
there is
a
ratio
loss
lower-than-average
94.2%
96.5%
46.1%
48.4%
45.9%-
47.6%
93.6%
45.4%
48.8%
46.4%
94.2%
91.7%
92.4%
45.3%
44.0%
6.'Fire.
"Phoenix
.........
will
be
noted
48.4%
that the ma¬
jority of the ten companies whose
loss ratios are higher-than-aver¬
Gen¬
have
age
than
-
ratios lowerThe
exceptions
expense
average.
and New
also have
Security
have a Hampshire, .which
expense ratio; higher-than-average
to
expense
The average loss ratio
ratios.
a
Hanover,
with an *, are:
National,
lowerloss ratio, have a
than-average
LOSS RATIOS
46.3%
r.t-w-
Insurance of N. A.
higher-than-
with
those
conversely,
95.0%
95.0%
...........
marked
average
43.5%
46.7%
46.7%
American..:
North/River
tendency for those com¬
panies which have a
7.2%
94.4%
91.3%
91.4%
95.4%
94.5%
Boston
found that
erally speaking, it is
9
96.5%
56.7%
91.9%
47.9%
47.3%
46.4%
Washington
Great
It
95.9%
47.7%
48.3%
..........
Aetna
"Hartford
incurred
losses
of
97.5%
98.1%
99.2%
94.1%
46.2%
48.6%
46.5% >•
44.0%
45.0%
49.1%
"Continental
U.
46.U%
47.8%
44.6%
46.5%
48.3%
48.0%
47.9%
"Springfield F.&M.
to pre¬
miums earned.
A study of these
ratios over a number of years re¬
ratio
..
97.5%
Companies with LOW
Eleven
the
and
written,
premiums
.
companies)
(21
fire and. miscellaneous
classifications fared better.; /
This week we would like
to
.
(21 comp.)
Average
heavy in
to
.........
"New
rationing.
gasoline
and
rubber
& M.
F.
Agricultural
account of
on
Paul
Sc.
"National
Ratio
44.1%
44.1%
48.3%
48.3%
"Hanover
those which were
automotive
w...*,
Written
i)3.*%
53.4%
52.1%
51.4%
49.5%
49.4 %
48.9%
48.8%
48.4%
48.4%
,
............
Assoc.
Comb.
these ten
aggregate was
of
companies is 50.4%, and
not be
should
We
unduly de¬
$750,000,000.
progressively scarcer, Brig.
Leonard
P. Ayres, VicePresident of ihe Cleveland Trust
Gen.
Co.,
declares in the company's
July 15 monthly "Business Bulle¬
tin." ;v'
%'/
After commenting on the "vic¬
developments on
particularly the
Atlantic, Gen. Ayres
torious combat"
the various fronts,
"In
off to
a
crops
our
areas
going
now
somehow
to accomplish
manages
and significant
sidelight on company differences
is illustrated in the
accompanying
age
have expense ratios higherThe
exceptions,
an
*, are: Spring-
than-average.
marked with
every
and
sort of; business is active,
little of it is excep¬
very
tionally prosperous, which is
as
it should be in time of
STOCKS
hard
and
67
Wall
WHitehall
NY
10
Street
Post
Office
HUBbard
3-0782
Square
135
S.
La
Salle
FRanklin
0650
(Special
7535
LOS
CG-105
1-2875
WIRE
ST.
•
CONNECTING:
ANGELES, SAN
SYSTEM
"
LOUIS,
LOS
r
HARTFORD,
Enterprise
NEW YORK, BOSTON, CHICAGO,
FRANCISCO AND SEATTLE
TELEPHONES TO
(5011
PORTLAND,
PROVIDENCE.
institutions,
to
Chronicle)
Financial
the
ANGELES, CALIF.—Ches¬
opened offices at
Enterprise
7008
Enterprise
7008
West
530
in
Mr.
has
a
Sixth
general
Noble for
been
securities
a
countries.
:
;
engage
:
.
,
..
Akin-
W. 1 J,
arrangements with Banks
the U. 8. A.
Agency
throughout
NATIONAL BANK
of INDIA, LIMITED
*
Bankers
Uganda
and
Colony
Bishopsgate,
London, E. C.
Office:
India,
in
Branches
in
Government
the
to
Kenya
Head
26,
Ceylon, Kenya
Zanzibar
Burma,
Colony and Aden and
Subscribed
£4,000,000
Capital
£2,000,000
Capital—
Paid-Up
£2,200,000
Fund—
Reserve
conducts
every
description
banking and exchange business
Bank
The
of
Executorships
and
Trusteeships
undertaken
also
it
de¬
NATIONAL BANK
of EGYPT
PAID
brings to
substantial piece
financing, this in the
current
The
CAPITAL
FUND
RESERVE
■
,
and
7
,
£3,000,000
.
£3,000,000
.
Street, E.
William
King
Cairo
AGENCY
LONDON
8
1
Register No.
Commercial
FULLY
Cairo
Office
Head
all
in
f."-'
the
C.
r
principal Towns in
\
EGYPT
SUDAN
the
and
week
market only one
of
corporate
secondary distribution
665,715 shares of no par con¬
of
form
of
a
$1.50
stock of
vertible'
ferred
cumulative pre¬
Twentieth Cen¬
tury-Fox Film Corporation.
Purchased by bankers from
the
•
further
illustrated the ef¬
market of the dearth
securities available for
new
in recent months.
block, despite its size, was
investment
The
oversubscribed,
and the books
closed within a
relatively brief
space
of time.
Another
„
of the
plea
Electric
&
South
Carolina
Co. for accelera¬
Gas
proposed issue of $20,-
tion of its
of first mortgage bonds,
due in 1973, brought that refinanc¬
ing to the fore as a possible oper¬
000,000
ation for later in the week.
agreed
Commission
The
to
time for
invitation of bids from bankers
.shorten
to
six
the
required
the
from
days,
normal
period of ten days.
share.
It
the
National
Chase
business.
with
<
E. C.
Threadneedle Street,
.47 Berkeley Square,
v
,
,
LONDON OFFICES:
.
29
Secondary Offering
number of years
associated
Lambert Co
to
Street
all
In
Zealand, Fiji, Papua and
Branches
Large
One
of
ter L. Noble has
PRIVATE
Australasia. With ove*
States of Australia, In
New Guinea,
and
London, it offers the most complete
and efficient banking service to investors,
traders and
travellers Interested In these
branches
B70
New
810,000,000.
rrtm
In L. A.
SYDNEY
Wales Is the oldest
o( New South
largest bank In
and
fect on the
Noble Opens
Street
task
Manager
George Street,
Office:
The Bank
886,000,000.
be it transcends in urgency
>
3
Chicago
f)
General
added some $4,802,000,000
to
their Treasury bond
holdings, which stood at $15,-
else."
Huff, Geyer & Hecht, Inc.
Bostm
the
of
rest
the
£150,939,354
ALFRED DAVIDSON, K.B.E.,
SIR
Bank, this una
good deal longer than many ually large block of shares was
expect. The important fact is that offered by a nation-wide under¬
we
are
winning.
However long writing
syndicate at $33.50 a
all
5
war.
hardest
may
York
quite
parts of these wars
still lie ahead, and they may last
PRIMARY MARKETS IN
New
Almost
months ago.
few
a
The
INSURANCE
Sept.,
velops,
their average expense
case
30th
Assets
1941
last year.
date
Member
expense
with loss ratios lower-than-aver¬
This interesting
./•/£23,710,000
■y.
Aggregate
normal volume,
ratio 46.1%, month by month its seemingly im¬
compared with 48.3% and 46.7% possible tasks. Our production of
ratio. ; In other words, it costs respectively, for the 21 companies.
planes, ships, and munitions con¬
It will also be noted that the tinues
to increase, although at
money to achieve a favorable loss
majority of the eleven companies more sober rates than was the
ratio,
v
higher-than-average
:
forward in nearly
The bulk of the increase was in
and stocks of coal
in storage are unusually large. It holdings of certificates of indebt¬
edness, which rose $5,501,000,000
is true that we are beset by war¬
Treasury bills
time inconveniences, but after all to $6,962,000,000.
most of them are relatively minor increased meanwhile by $2,994,ones.
J"•V"'
V'. 000,000, while holdings of notes
"Railroad
transportation
still expanded by $1,922,000,000 to $4,-
is
of Prop.
compared with $19,782,000,000
on July 15, the nearest compar¬
able
agement of our food controls is
disquieting.
Our coal problems
remain unsolved, but production
6,150,000
8,780,000
Fund
Liability
foregoing
the
In
are
start, and the man¬
poor
/
£8,780,000
Reserve
Reserve
interval, the
weekly condition statement of re¬
porting member banks as of July
14 last, shows that those institu¬
tions have expanded their hold¬
ings of Government securities by
upward of $15,300,000,000.
As
of
that
date
member
banks showed aggregate hold¬
ings of $35,165,000,000, which
1"/ %.%■7large
/
1817>
Capital
Paid-Up
Banks' Holdings
Member
:
:
gets
stated:
of Treasury
WALES
(ESTABLISHED
Head
bonds,
$1,480,748,000, than they did on
the corresponding date in 1942,
when the total was $1,640,296,000.
I "r The major expansion took the
form of a ten-fold rise in bill
holdings,
to
$4,327,318 from
$494,549,000, while holdings of
certificates rose to $1,091,700,000 from $1,178,231,000.
In the
interval net holdings of Treas¬
ury holdings have remained
virtually stationary, just under
smaller amount
pressed by the fact that in this
country everything except* money
Battle of the
$3,037,551,000.
Yet, despite the several large
Victory Loan drives, it develops
that
the
central banks hold a
| On War's Progress
%
BANK OF
NEW SOUTH
-
Incurred
To Prem.
Franklin
.Fire
diversifica¬
V./
:
Ayres Optimistic
RATIOS v:
Expenses
Losses
Incurred
To Prem,
Home
from an¬
miss selection
AVERAGES
:'';f'
activity
trial
or
provide balanced
will
an
which dif¬
company
hit
No
other.
operating ratios.
age
"equity" company, but it loses
out in times of expanding indus¬
and study,
the distin¬
guishing characteristics
ferentiate one
table which shows
insurance
fire
compare
intelligent care,
with
L. A. 280
-
must
stocks
Francisco
of
portfolio
tive
WIRES
San
results are achieved by
companies
which have
ceptions to this rule.
Certainly the investor who de¬
sires
an
adequately representa¬
St., Los Angeles
Chicago Seattle
-
and shorthighly liquid
collateral.
'' v
The most recent statement of
the Reserve, showing the condi¬
tion of the 12 regional banks
on a consolidated basis, puts the
total U. S. Treasury obligations
held at
$7,644,666,000, an in¬
crease of
some 150% over the
same date a year ago, when the
certificates,
term
higher-than-average
expense
ratios.
There are, of course, ex¬
(P. C. T.)
Orders solicited.
to 5 p. m.
PRIVATE
ing value in a
ment income
writing
Zealand
Australia and New
bills
of
form
the
in
that, in the majority of cases,
most favorable
net under¬
the
has come
central banking system
Ltd.
Bank,
Deacon's
Glyn Mills & Co.
;
Sharp expansion in holdings of
Government., securities
by
the
reasonably draw the conclu¬
sion
CALIFORNIA
OF
210 West 7th
of liquidat¬
pose.
From this we
above.
as
may
Butler-Huff & Co.
The "bond" company,
things . being equal, will
show less appreciation
m.
invited.
Inquiries
in equities.
other
results
Brokers.
&
Dealers
to
heavily in bonds,
invest more heavily
more
while others
distorted be¬
of usefulness.
However, an examination of other
five year averages within the past
decade shows almost identically
the same grouping and relative
Compared
Service
-
Trading daily 7 a.
Associated Banks:
Williams
not
point
the
yond
Quoted
-
Reviewed
Special Bulletin and Booklet
volatility of liquidating
stability,
Sold
-
is
1942
that the ratios were
BANK STOCKS
differences
up
so
losses,
marine
INSURANCE &
underwritings,;; etc.
affect their
premium
These
absorb
to
Reserve
ASSETS
£108,171,956
unusual, due to about, the figures reveal, entirely
gas rationing, etc., through additions to its portfolio
perience was
/
panies quite extreme differences
of managerial policy, in regard to
investment of assets, allocation of
TOTAL
to the powers
$5,000,000,000 of Government
bonds if necessary for that pur¬
operating
of
year
year's underwriting ex¬
the
that
due to the nature of the business, is not
pointed out in this column two weeks ago, there
jexists among fire insurance
the
fc.'J
Street, W.
64 New Bond
-
company,
As was
sufficient.
the
for
shown, and they are not included
in this brief study, for the reason
in other
degree of
insurance
companies have an
"combined ratio" of only
comparison
A
principle of diversification, just as does the wise investor
categories of common stocks.
The fact that a unique
diversification is inherent in the stock of any one well established
fire
Burlington Gardens, W. /
to
ratios
VAN DEUSEN
in fire insurance
investor
The
of
Insurance Stocks
Charing Cross, S. W. I
,49
;
■
93.6%.
Smithfield, E. C. I
8 West
rendered
recourse
E. C. 2
3 Bishopsgatc,
v ;
that such aid has been
without
OFFICES:
LONDON
develops
average
Stocks
regional banks.
12
Scotland
throughout
Branches
At the same time it
;;
high-expense
Bank and Insurance
OFFICE—Edinburgh
HEAD
of 96.5%, com¬
1727
Incorporated by Royal Charter
*
"combined ratio"
Teletype—NY 1-1248-49
Gibbs, Manager Trading Department)
Bell
NEW YORK 5
WALL ST.
'
Stock Exchange
York
New
Member*
120
bwenanye
exchanges
Yvrtc SiucK
new
Royal Bank of Scotland
and 46.7% re¬
The extent to which the Fed¬
spectively, for the 21 companies.
eral
Reserve
System has
sup¬
Lower expense ratios are not
sufficient to offset the higher loss ported the Government bond mar¬
ket
through its huge war fi¬
ratios, in the large majority of
nancing of the last 18 months be¬
cases.. For example, the ten com¬
comes apparent from a glance at
panies with high-loss but lowexpense ratios
have an average the weekly condition statements
Meeds
Laird, Bissell &
other
'.-;'V
ViJy
.///=;:■
OUR
pared with 48.3%
Request
on
Trust Co.
and
expense
average
average
New York
tnemoer*
lower-thanratios:
The
Fire, -which also have
Action
Exchange
subsidiary of
Electric Corp.,
company,
plans to use the proceeds from the
sale for the purpose of retiring
obligations.
further modified
the dividend restrictions on the
common stock of the issuer, im¬
certain
outstanding
The Commission
posed last
Possibility
the Securities and
Commission in granting
of
a
the General Gas &
The
the
month coincident-with
of Lexington Water
into South Carolina
merger
Power
Power.
Co.
.r
f
,
'Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
158
I Ni Y. Savings Banks Report Gains In
Prospects Promising
For Canadian
Crops
In its current crop report,
•
July
the
15,
States
Bank
that
of
Montreal
prospects
crop
Sbv
are
846 payroll savers,
setting aside
regularly each month $2,275,736
for purchases of War Bonds.",
r
]: Deposits, War Bond Sales In Six Months
"A
dated
-!''!
•
Mr. Short further said:
"These
large part of the American people aire striving earnestly to
defeat inflation
experience of
and to
our
ly
put their money to work for victory, if the
New York State savings banks is
305
to
statistics
the
me
people,
their
:
indicate clear¬
temper
of
desire to
our
back
up
criterion,"
the boys at the front and to fight
promising in Manitoba and satis-<
Myron/S...Short, President of the Savings Banks Association of New
actively at home for the contin¬
factory in most
York
and
of Alberta
areas
Saskatchewan. / High
peratures
tem¬
throughput the Prairie!
Provinces
during
•have promoted
the
past week
rapid growth, ac-j
cording to the bank, which in its
-
report also says:1,
I
"
.
,
I "Wheat is mostly in shot blade
;! and heading is becoming general
.in some districts. Moisture condi-j
Bank, stated
during j the
come
most
over
of
and
Alberta
Saskatchewan and is urgently re¬
quired
from
in
hail
small.
districts.
some
and
Weeds
have
pests
been
troublesome
are
districts.
some
making fair
Losses
Sugar
beets
in
the
Province
of
Quebec,
weather
warm
growth
tory,
and
where
has
in
there
satisfac¬
low-lying areas
been
damage
has
excessive
vesting of
recent
stimulated
is
progress
except
from
in
progress
moisture.
Har¬
excellent hay crop
Pastures continue
an
is in progress.
in very good condition.
Corn and
root crops
show good growth, ex¬
cept in low lands where damage
is
reported. /
and
Moisture
continued
is
Executive
Vice
savings
July 16! in presenting
first six months ..of »
ori.
in.
life
insurance."
are
sometimes
at
14%
again
a
other
the
was
at
6,103,324
been
the
4.35%
increase
of
banks
as
ing
the
1943
second
will
Certainly
will
ergy to
confident that
am
for
results
greater.
in
bend
the
their
bringing
even
savings
every
Sound
7 The 'savings banks
providing this service
implement the Treasury's Pay¬
•
activity
Mortgage Advice
The country and especially men
with mortgage loans outstanding
more
their rights
under
the
Soldiers' and Sailors' Civil Relief
the national
acted
to
protect
outstanding.
legislation
with
men
Mr. Mullenix further
"The
most
left
with
servicemen
loans
gage
that
they
STATEMENT OF CONDITION
of; principal
The first payment on -the
•nounced'
July '15.
on
in the matter
-
"The
*
in
service.
wholly
sort
This,
untrue.
f;has
but
a
uninformed
with
ing'
to
more
part
It has been
help
A forum
of
ternational/ Committee
doing
good."
developments under
on
the Act is scheduled for the Asso¬
ciation's
30th
annual
meeting
>
.
results of
an
war's effect
vicemen
was
MBA survey on
on
mortgages of
reported in
of July 1, page 29.
OF
Edward C. Romfh, President
'
ers
of
Mexico, through its chair¬
Thomas W. Lamont, and in
on
man,
behalf
ment
of
the
Mexican
Congress
Mexico, for the
on
Loans
First
1942.
29,
Committee
International
Bankers
of
v.
^
with
connection
the British
for
Other Assets
Expense)
added
is
that
"the
.
.
.
.
.
....
.
.
.
......
.
.
$1,230,618.68
406,369.64
.
.
.
..
.....
...
.
.
v
.7
.
.
.
.
.
.
...
.,
.
.
....
.
..
.
.
.
.
.
129.69
.
.
.
700,000.00
154,312.28
....
.
.
.
.
.
.
.
.
......
.
.
16,155.00
/
(Includes Accrued Interest and Prepaid
...
.
.......
.
Stock—First National
.
.
.
.
.
.
.
....
.
......
.
(1,440 shares)
Holding Corp..
108,540.75
.
.....
72,000,00
.
............
100,000.00
.
*Bonds Owned;
State and
Municipal Obligations.
Industrial Bonds.
Tt
Railroad
...
.
..
.
.
.
...
.
.
.
.
.
....
.
.
U.
S.
Government
.
.
.
.7
..........
the
504,734.35
.
.
..7,
...
.
.
.
.
.
.
.
;
•
Obligations...
$41,399,851.42
19,708,230.91
49,521.25
113,811.08
..........
Cash Reserve and Due from Banks.
TOTAL
ASSETS
.
*List Furnished Upon Request.
.............
1
<
61,108,082.33
$64,564,275.05
'
LIABILITIES
were
Capital..
land."
It
t.
.
Improved Real Estate
on
Stock—Federal Reserve Bank
May, London, Eng¬
&
Slaughter
Section
77
Other Real Estate.
Agreement and, for the fiscal and
registration
arrangements 7 were
Hardin, Hess & Eder, New York
City; counsel for the International
Committee,
American
Section,
were Davis, Polk, Wardwell, Sun¬
derland & Kiendl, New York City;
and
'.
.
Furniture and Fixtures.
."Counsel for the Mexican Gov¬
in
/
Individuals, Firms and Corporations
Banking House
Association Suisse des Ban-
ernment
to
Mortgage Loans
Overdrafts
negotiations, or¬
a group of international
bankers consisting of the follow¬
ing: American Section: Thomas
W.
Lamont,
Chairman;
DeWitt
Millhauser, Walter T. Rosen, Sir
William
Wiseman,
and ..Vernon
Munroe, Secretary; British Sec¬
tion: Lord Bicester, Chairman; Sir
Edward
R.
Peacock, Frank C.
Tiarks, Vincent W. Yorke, and E.
C. Webb, Secretary; Swiss Sec¬
quiers, Basel.
1943
,
pur¬
these
of
ganized
pose
.
I
ASSETS
by the Mexican
December
on
30,
•'
'
•
Govern¬
The agree¬
ter, Eduardo Suarez.
tion:
>
through its Finance Minis¬
ment was ratified
The
June
Miami, Florida
y
time
■
......
■
Surplus and Undivided Profits
for
Reserve for Dividend.....
holders to register their securities
.
.
.
........
.
.
.
.
.
.
.
$1,200,000.00
1,649,790.08
36,000.00
...
.
■
has
60
extended
been
days from
June 30,
1943. This extension ap¬
plies only to the external debt of
the
States of
United
does
....
.7.
.
..
.7..
.
TOTAL LIABILITIES
Mexico and
..
7...7.....7
...
.
....
...
77.
v.
.
.
61,678,484.97
$64,564,275.05
include the railways is¬
not
the
with
sues
...X.
Deposits
exception
of
...
Tehuantepec National Railway 5%
and 41/2%
gold loans, due June
'
1953."
Deposits
June 30, 1942
'
.
§47,528,471.21
Application forms for
of registering these
30,
the
-
7
*
.
June 30,1943
$01,078,484.97
purpose
securities
are
now
available
be
obtained
ment.
The Mexican
tion
of
plan for redemp¬
service
on
its
external
referred
to
these columns. July 1, page
33.
public
debt
was
Greater Miami's Oldest—South Florida's Largest—Financial Institution
and
from the Pan
American Trust Co.,' New York
City, according to the announce¬
may
in
-
,
}
Under Same Management Since Organization
-
Member
Federal Reserve System
Federal Deposit Insurance Corporation
in 1902
in
Chicago, Sept. 23, 24 and 25. The
Bank¬
In¬
orig¬
army
of try¬
of Miami
debt
of in¬
it
case
a
public
an-:
as
from
actually
but
harm than
is
this
of
civilians, but
was
the
of
course,
misinformed
The advices
was negotiated by a group
ternational bankers known
in¬
principally
come
well-meaning
of
Advice
stated: ,r
resumption
and
terest during the period they are
Foreign Debt Payment
debt of Mexico since 1928
mort¬
forever relieved of
are
payment
with
ample
Resumes
cer¬
outstanding has been
would be beneficial."
Mexico
and
common,
tainly the most unfair, impression
weather
warm
en¬
debts
commented.
going into the armed services,
can
get along very well without
the
uninformed
and, inaccurate
"curbstone" advice so freely given
in the past year, in the opinion of
Charles A. Mullenix, President of
Incomplete
received ^reveal that
to
as
responsibilities
Act,
and
the /savings banks are servicing
than 3,093 firms with 181,-
posits and, to my knowledge, is
the largest increase in savings de-
and
inated
into
-
themselves.
reports just
tionally misled
en¬
ever-increas¬
an
of participants
number
six
be
Urges Servicemen Get
adequate facilities to handle this
de¬
revealed that the families of many
servicemen
have
been
uninten¬
sources.
-Savings
Program
among
those employers who do not have
savings
banks deposits during the same
period was $242,643,000. This rep¬
a
even
7;'/v7/\;A.
-
months
roll
in
Mullenix on July
17 said that the organization's na¬
tion-wide inquiry into the matter
avail¬
be
the fight."
War'Bonds.
have
savings banks.
resents
were
would
total
working, &n<f I
which I wish
to present and of which the sav¬
ings banks' are justly proud have
to
do with
payroll savings for
bought at the
increase
have
"The Home Front is awake and
30.
to
net
the
greater.
a
offices of New York's 132 mutual
"The
savings agencies
able
June
accounts
Yorkers
"The final figures
of War Bonds and
were
of
of June
this State during the
months to July 1 are estimated
or
month
savings
War
$911,000,000.;. Of this, $128,370,-
000
101,420,
figure.
result, both dollar deposits
of people served
stand at an all-time high with
deposits
at ' $5,812,733,796
and
Stamps in
six
of
alone, New
$1,154,643,000 in six months'
time, - and average of $315 per
family. If comparable figures for
Mortgage Bankers Association
of America. Mr.
saved
and the number
how
sales
counts
our
accounts
As
lively
"Total
-J...——7
six-months' period.
Like^
records shew a'net gairi
-
democracy.
"In War Bonds and savings ac¬
recorded by the banks
ever
of American
uance
savings banks have ex¬
perienced, with a $50,639,000 gain
in deposits and 19,850 in accounts.
Mr.
porting v the
Government's
Savings program.
Savings
of savings activity
resume
"The
evidence to demon¬
the people of New
York State are voluntarily sup¬
are
Buffalo
best the
monotonous, but in this case they
strate
the
record-breaking
Short continued.
"Statistics
a
in
of
;■
wikei
$371,013,000. In addition, the sav¬
ings banks wrote $3,836,600 of
low-cost
a
posits
new
...War / Bonds
through
.
President
bought at the savings bahks and
increased savings
deposits from
Jan.
1. to July
1 amounted to
are
Alberta
good progress in Manitoba. In
and
and
"The combined total of
1943.
tions
are
satisfactory throughout
Manitoba, but rain would be wel¬
State
any
the
.t
r
if
our
the
ser¬
issue
:
THE COMMERCIAL & FINANCIAL CHRONICLE
306
tions
When Inflation
Comes, Deflation
an
increase in wages
to offset the, increase in .the costs
:•
•
of
Cannot Be Far Behind
•
t
y
•
•
♦
•
■
—___
.
•
.
an
Africa
South
"
——
—
Brazil
66
———
'
Mexico
4.970
950
68
373
132
795
—
Colombia
1-880
1,118
4,825
-
Chile
•
~
.
Argentina
"
«.
296
IOB
■
Peru
•
"Germany
i
8,223
22
—
.^Belgium
—w.
11,798
28
•
Denmark
441
Ill
a-
Sweden
Switzerland
--
Turkey Ji
:
v.,'; >Reichinarks
i
.
only.
194
,
68(
.
.
383,
512.
,
.
,
Commercial Bank Deposits
>
•
...'
(In Millions of National Currencies)
Dec.
•
.
.
United
United
rj
Kingdom
New
.
South
3,329
3,629
335
384
73
83
101
148
3,212
423
99
195
4.461
Africa
100
India
L
2,277
2,401
3,913
12,523
1,923
v
——
Colombia
(Mexico
;
3,791
H.665
_________
Chile
2,049
,
4,585..;
16,531
123
727
448
13,630
13,155
2,305
,
Germany
f Belgium
'Denmark
452
.318
10,524
16,313
___>
—-
i-,—.w
'■■'France''-..-,
2,455
42,443
97
.
T
'
,
____
; Turkey
"July 1942.
687
576
4,260
4,401
3,111
3,015
3,163
262
374
tApril 1942.
,
,
161
1,038
610
/*
...
.
.
Conditions
and
Policies
The end of hostilities will leave the
are
required
to
make
further cuts in their consumption
of ; newsprint
during-; the third
quarter, ranging, up to 5% for
larger users., The new reduction
follows
the
of
recommendations
the Newspaper Industry Advisory
Committee made in June.
additional
The
5%
reduction
does not
apply to the first 25 tons
for newspapers using less than 500
tons a quarter. ,'; This provision,
the WPB
said, is designed to aid
operation of smaller news¬
the'
papers.
vices
:
The Associated Press adfrom
which
we
quote,
added:
2.5%
50
u
curtailment
ranges
''."V
from
for newspapers using up to
tons
a
quarter and to 5%
for
warring countries newspapers, using 500 tons or
largest job of reconversion to peacetime business more a quarter.
inn
in their histories; the highest debts known: to them; the
& "The necessity for economy in
209
123
most burdensome taxes ever imposed; and greatly inflated the use of print paper becomes
245
and vulnerable currency and credit systems.
What is tc more pressing with each passing
206
week," said H. M. Bitner, Director
/ 90
be done about all of these colossal problems?
The change: of the WPB's
Printing and Pub¬
back to peacetime production will take time,, new financing
,^273 . (
lishing division."
A- •*:
A period of readjustment* unemployment
;/ S\:% and new tools.
"Any usage of paper over the
and no doubt a great deal of hardship will be experienced I quota,
until > an vexception
is
Plans should be under- way for this;Transition period irf granted, will be at the applicant's
risk," Mr. Bitner said.
Increase every war business.j The Government has plans.
Every,
"Failure
of
1938-42
newspaper
pubV
community should have its own plans. Therje cannot be tod lishers to live Within the allowed
64
46
many well thought out and sound plans for reconversion usage in any quarter necessitates
61
and reconstruction. A thorough knowledge of the conditions reference of all such cases to the
33
57
' :
after the last war will be helpful.
While the» change-over WPB compliance division."
95
The WPB stated it would not
96
after this war will be much larger than after the last war,?
recommend granting extra paper
39
'
many of the same problems will be faced] -only perhaps on for
48
publication of special editions,
48
a
larger scale.
/; *
'
'
\
nor would it grant additional ton¬
85
182
When the war ends; the scarcity of peacetime con-; nage to meet circulation gains
113 ;
sumers' goods and the scarcity of peacetime capital to pro¬ achieved through prize contests or
;
similar promotional campaigns.
68
duce with may cause prices to rise sharply unless controls
54
Under the original print paper
are
173
very firm.
The unemployed from war factories, and curtailment order which went
42
the returning soldiers will be expecting their savings and! into ^effect Jan.
21
1, newspapers
; 8 i. their small incomes to
support them in comfort. Runaway were limited in each quarter to
52
prices and depreciated currencies can cause far more hard-: 100% of the tonnange of paper
used in printing their net paid
ships after the war than have been endured in the domestic
circulation in the same quarter of
economy during the war.
1941, plus 3% for spoilage.
with the
,
'
*441
,
Post-War
July 6 that newspaper
on
publishers
,
,
•
9/5
5,157
3,347
„;
nounced
r
27,465
3,547
91,547
76,656
941
4,879
291
—-
_______
I Switzerland
5,254 i,/..
U7.318
"*■ 2,844
26,177
20,786
3,116
368
33,578
Netherlands
! Sweden
„
2,469
287
87
—
.....
i
Peru
j
2,774
2,441
63
Brazil
%
1942
88,437
3,657
2,500
Zealand
Argentina
•
1941
70,792
3,105
54,054
319
Australia
;
Dec. 31,
.
1939
58,344
;
2,253
•
_____
Canada
•••
Dec. 31,
Dec. 31,
31,
1938
..
States
an-'
.
Jin billions.
tSeptember, 1942.
*V1v'■ *
;
v
The War Production Board
•
2,62I
724
,
inevitable.
Newsprint By 5 VV
.
3,034
2,016
'
2,116
1,700
2,337
seems
22,; 1943
WPB Curtails Use Of V
"The
133
,;.
983
270
tion
70
154,
162
111
753
233
842
,
-
1,856
•
19.325
48
..
281
....
t8,500
82
563
209
1,152
1,422
2,050
Netherlands
'
5,704
1,627
1,449
151
992
1,061
1,751
;0;
600
tPrance
,
110
203
47
.*>' 76
40
30
3,356
1,380
6,647
21
2.359
1,191
19
'
'
.India
July
Thursday,
v-
living will force.The shops intb'bankruptcy.
It is now
proposed to use subsidiesj{o^aypid|the:-wholesale failure,
of these businesses.',; The, use of 'subsidies in England and
Canada are pointed to as examples. But the fact that Eng¬
1
V.v#rL
r.r!
«%•
land and Canada started to controLprices with the beginning
(Continued from first page)
of the war and have' done a\much better job of holding
ing power created by war purposes.
The following table down
prices, wages, the cost of living and the debt cost of
from the bulletin on Economic, Conditions of the National
the war are all omitted in discussing these subsidies.
The
City Bank of New York, June, 1943, indicates the trend of
present disparity in wages, prices, costs and the confusion
currency and bank deposit inflations throughout the world in the
policies and practices in this country make the use
at the present time.
.
of subsidies unreasonablyL costly at this-late date.
Any
Currency Notes Outstanding
attempt to roll back prices and use subsidies would create
(In Millions of National Currencies!
indescribable opportunities for graft and • new demands
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31, % Increase
1938
1939
1941
1942
1938-42 for costly regulatory services.
Because of the limited suc¬
United States
'
6.856
7,598 •
11,160 ,-- 15,410
125
cess of the policies of control and regulation of prices, wages
Canada
263
V 318
567
754
187
United Kingdom "I"--!::
and costs, and the failure to apply taxes effectively to close
505
:
555
752
>
923
- 83
-Austral
49
,5?
§5
111
147
the growing inflationary' gap of spending power costly infla|
New Zealand
17
25
"
i?n
,i.
'
.
,
lW
points include inflation in China has
I- This table does not out that China. But the Nationaltaken
City
Bank bulletin
It had been expected that this
Fortunately the recovery of peacetime production does
long in any country, given one or more normal sea¬ Would bring about a 10% over-all
risen 30 or 40 times.
"Disorganized production, combined sons together with constructive political and economic pol¬ reduction of consumption but this,
it
is
stated,
was
not
accom¬
with inadequate and costly transportation, has resulted in icies.
One of the interesting bits of economic and social
plished.
acute scarcity of goods of all kinds, while war expenditures
history which has not been too well learned in the United
fare being financed largely through inflationary issues of States is that a
country which has been apparently devas¬
■currency and credit."
<
tated by war can return to prosperity and support itself Combined Food Board
No country is fully avoiding inflation, and certainly
very quickly, at most within one or two seasons.
Tools,
To
none will
escape the effects of the inflations of other coun¬ materials, management and work will do wonders, and have
tries. But some countries are doing a very good job under after every, war in a short time,. much to the astonishment
Canada
i
i the circumstances.
For example, the currency notes of of those who have viewed the
seemingly unrecoverable de¬
The Department of Agriculture
Switzerland have increased 51% and the bank deposits only structions.
Of course, these productive forces thrive best
announced on July 12 that the
I 8%.
In the United Kingdom the currency outstanding has under peaceful free enterprise, stable political and economic
Combined Food Board has made
increased 83% and the commercial bank deposits 61%. The conditions not torn
by fear and oppressed by taxes and arrangements for a survey to be
conditions in all of these countries vary widely, and the debts.
made of the available statistical
*
'
*
(
1
inflations and the consequences will be governed for each
records and other data concern¬
Writing of similar destructions, John Stuart Mill, about
; country by conditions outside of the country's control
in 100 years, ago, before modern speed, transportation, ma¬ ing food supplies and consumption
in the United States, the United
Ipart but largely by the resources, financial management, chinery, engineering, electricity, chemistry and mass pro¬
Kingdom, and Canada.
The primonetary, tax and economic policies of each country. From duction came into being, said:
mary
object of the survey, the
/
the tables it seems clear that the British
Empire countries,
"This perpetual consumption and reproduction of cap¬ Combined Food Board stated, is
to take steps to put food data of
1 Sweden, Switzerland, Denmark and other well-managed ital affords the explanation of what has so often excited
these countries on as near a com¬
countries are seeking to avoid as much inflation as poswonder, the great rapidity with which countries recover parable basis as possible.
The
; sible.
Up to the date of this table, the United States had from a state of devastation; the disappearance, in a short Department's announce ment
added:
'
'
V
: ■
[hardly got started on its inflationary war boom.
time, of all traces of the mischiefs done by earthquakes,
"Three United States Depart¬
floods,' hurricanes and the ravages of war. An enemy lays
Inflation in the United States
ment of Agriculture officials have
waste a country by fire and sword, and destroys or carries
arrived in England and shortly
%
Currency notes outstanding. are more than 17 billion away nearly all the movable wealth existing in it; all the will begin discussions with offi¬
j dollars.
Bank deposits have exceeded one hundred billion inhabitants are
ruined, and yet in a few years after, every¬ cials of the British Ministry of
i dollars.
The debt of the Federal Government is
Food.
They are John Cassels, of
expected to thing is much as it was before. This Vis medicatrix naturae'
the Food Distribution Adminis¬
: reach 210 billion dollars by the end of the fiscal
year.
In has beeh'a subject of sterile astonishment, or has been cited
tration; L. A. Maynard, of the Ag¬
spite of the efforts to hold down prices and wages, the costs to exemplify the wonderful strength of the principle of sav¬
ricultural Research Administra¬
of living and the costs of business have mounted
sharply. ing, which can repair such enormous losses in so brief an in¬ tion; and Montell Ogdon, of the
Labor organizations are
Office of Foreign Agricultural Re¬
demanding new wage increases be- terval. There is nothing at all
jon runaway proportions.
In free China food prices have
not take
,
Survey Food Data- j
-
Participating
•
<
_
,
.
,,
.
.
a
i
.
-
,
c
;
1
cause
of the rising costs of
wonderful^ in the matter.
living.
lations.
The producers^of food, What the enemy have destroyed would have been destroyed
"The Canadian Government is
oil, housing and other products are demanding price in¬ in a little time by
the;inhabitants themselves: the wealth also participating in this inquiry,
creases because of the increased
wages and taxes. The infla¬ which they so rapidly reproduce would have needed to be and Ian McArthur, of the Cana¬
tionary gap of spending power in the hands of the public in reproduced and would havejbeen reproduced in any case, dian Dominion Bureau of Statis¬
excess of the available
goods to buy is estimated by various and probably in as short a time. Nothing is changed, except tics, already has arrived in Eng¬
'• %
authorities from 40 to 60 billion
'v% .
' ■
dollars'rand is expected to that during the reproduction they have not now the advan- land. :•
"These personal discussions will i
rise another 40 billion or more
during the coming year. vage of consuming what had been, produced previously. The
supplement the full exchange of
While wages in some occupations have risen much faster
possibility of a rapid repair of their disasters, mainly depends information on food maters which
than the costs of living, in other
occupations, and particu¬ on whether the country has been depopulated. If its effec¬ is already taking place through
larly in peacetime occupations, wages have lagged far be¬ tive population have not been extirpated at the time, and are the regular channels of the Comhind the rising costs of
living. In many of these, occupan. not starved afterwards; then* with the same skill and knowl-
'
,
:Volume 158
'COMMERCIAL' & FINANCIAL CHRONICLE
Number 4196
■:
edge /which they had before,; with their ;lancU and Tts per^
manent improvements undestroyed, and the more durable
."buildings unimpaired, or. only partially injured, they have
nearly all the requisites for their former amount of produc¬
tion. If there is as much of food left to them, or of valuables
307
again: be- as well or better nourished than ever before, and
patients will be able to sit up around the interna¬
then the
tional
conference
table, and
talk
taxes, and make promises on
about their
ills
of
debts,
international loans.
r *
new
accustomed to
employ in their occupations. Nor does charge it up to the war. The costs of the war have been
strength in the principle of saving, in the large in all British Empire countries but nothing like the
^popular sense of the term, since what takes place is not costs to the United States. In the British Empire,costs have
intentional abstinence, but involuntary privation."
been kept down, prices have been controlled better and the
-;
;(• Modern efficiency and; skill have greatly shortened the currencies have a larger purchasing power. The Britsh Em¬
required for reconstruction.
Those who
looking pire's need is for a clearing system.
England wants and
for a long and prosperous
period of rebuilding and' supply¬ needs from the rest of the Empire countries arid other coun¬
ing delayed peacetime needs; might avoid some errors in tries of the world raw materials, food and such
goods as
perspective by examining similar experiences. of the past she does not produce advantageously.
She has manufac¬
and then
adding a large measure of modern mass production tured goods and services to exchange for these. What kind
efficiency.
;
' '
of-money any other country has is of no concern to England
as
long as it is a stable and dependable money and serves
■Pi
Plans for Stabilization of the Currencies
are
the best
Sound and
dependable currencies are necessary for any
of commercial relationships between the various
This is problem number one in the conversion
interests of the
country that creates it.
It is, of
two
(it will take all that much time to iron out these
war
and the various' countries of the world will
supply bill for the
cy
year
signed
was
Roosevelt
July
on
balance
of international trade.
England will avoid this practice, to
advantage undoubtedly. Thel United States must
own
""
-
-
(Continued
.
on
308)
page
OF
12.
Jan.
1,
providing
AS
•
in this
>Also included
is
measure
provision
a
.
OF
.
,
.
bargaining
where
in
elections
labor
a
force .without
three
.
.
.
21,073,253.79
Corporate Bonds and Securities, Including Stock in Federal Reserve Bank.
Loans and Discounts.
Bank
.
.
...
...
.
30,
1935,
NYA
Customers'
.
.
.
.
.
.
...
iTotal
;
..
.
.
,
,
.
.
.
to
'
train
..
.
young
have
been
work
but
connected
the
duplicating
work
bureaus.
NYA
its
It
.
„
;v'-v ' y,y.-.>;s'V.■ ;,y',y.'Vv-y
......
..
r;. V
y.y n .Y
with
war
also said that the
was
in
y
-v
.
.
.
,
.
.
1,309,898.33
Reserve for
..
chanical
which
training
over
and
NYA
other
has
.
.
.
Contingencies.
is
schools
its
to
>,
Income
274,077.58
.
.
Treasury Department
disposal.
/
The Senate voted
continue the NYA
sential"
1944
the
ever,
to
the
Senate
and
backed
mand.
later
up
■'
;
■
y y y-
y
•
.
y yy
•
y.
■ •;y...."*.
•■-.y•.: v;
.
.
.
.
Letters of Credit.
.
...
...
.
.
.
.
....,,
>17,901.27
564:436.36
MEMBER "FEDERAL
DEPOSIT
Deposits
t
.
.
-.;.
.
Total.........
INSURANCE
CORPORATION
.
..
y..;
.
.
this
bill
Deleted
from
...
y.
proval
of
Manpower
or more
a year.
Av 739,414.36
25,000.00
64.897,962.24
.....
an
employees of the War
Commission
earning
.
.
.
was
amendment to require Senate ap-*
15,968.90
.
de¬
-
.
.
itself
House's
yyyyy vyy:
15,968.90
previously
agency and
reversed
91,512.06
,
,y. :-*i
:•••
es-?
How¬
year.
the
194,578.80
.
.
"war
$47,800,000
had
abolish the
June 29 to
a
it
fiscal
House
the
voted
on
as
and ' give
for
for
-
..
I
Collected—Not Earned.
yyyyyyy
.
,
turned
the
100,000.00
Reserve for Taxes, Interest, etc.
numerous
be
to the Procurement Division
14,117,097.86
Declared
of
equipment
at
.-'r
.....
use
equipment and manT
Under the bill, the me¬
1,500,000.00
•*
the
funds,1
;.......y.yy..
</'
overlapping
Government,
or
other
wasteful
was
power.
of
of
1,000,000.00
y
........
Undivided Profits f.
,.y;•
.
July,
people foi^
employment and to help needy
boys and girls through school. The
agency's training programs of late
.;; ;
...._.
:,V'Vy;.-:V'v.y.y
Surplus
.
127,126.38
...
Liability—Letters of Credit
Other Assets*
.
118,511.71
Income Earned—Not Collected (.
>'yy."-
Capital
-
.
for
created in
was
1943
Reserve for Dividends—Not
Fixtures
been
complaint
13,127,221.21
\
plants
has
months.
The
$4,500
785,513.69
Other Real Estate
•;
...
Building
Furniture arid
••
.
in
contract
TENNESSEE
JUNE
$17,697,865.64
State, County, and Municipal Bonds..
pro¬
Rela¬
tions Board from calling collective
LIABILITIES
.
by
to
hibiting the National Labor
BANK
ASSETS
~.
bill
$3,000,000
these costs.
cover
NASHVILLE
NASHVILLE,
United States Government Bonds,
This
orders the liquidation of the Na¬
tional
Youth Administration
CONDITION
NATIONAL
IN
.
President
were
STATEMENT
Cash and Due From Banks.
fiscal
new
by
.i.v
THIRD
De¬
money
complicated problems) with the available shipping capacity her
after the
Labor
course,
^
or
$1,137,167,010
partment-Federal Security Agen¬
Congressional critics
had charged that these
programs
important that any country have a sound and stable
for its own best interest.
A country with an un¬
to peacetime conditions and the restoration of international stable moriey on which its own people and the rest of the
world cannot depend
undoubtedly is a menace to commer¬
relations between countries.
Currency stabilization, debts, cial
stability throughout the world but a far greater menace
taxes and the need of peacetime
capital are all tied.up to¬ to its own commerce and
stability. •
gether and a complete separation for reconstruction pur¬
Frequently the instability of the currency system of a
poses seems out of the question. However, monetary stabil¬
Ismail and undeveloped
country results from foreign" invest¬
ization is the first essential in
dealing with the other finan¬ ments in the
country and the efforts of the foreign investors
cial problems, v
to collect in
gold, interest, dividends, profits, and even for
Both the British and the American
plans for currency the sale of capital.
This undermines the stability of the
stabilization seem
unnecessarily bunglesome, vague and currency of the
borrowing country. A creditor country can¬
inflationary. The first step seems to be for each country not follow this
practice without upsetting the stability of
to put its own financial house in order and establish
a
the foreign
exchanges. It was this effort to collect foreign
sound currency upon which its own
people and .the rest of debts in gold that brought on the
collapse of the interna¬
the world can depend.
When this is all accomplished the tional
exchanges in 1930. This will be repeated if creditor
problems of domestic and foreign debts can come up for countries lend their
capital lavishly to impoverished, debtconsideration.
In the meantime, no
doubt, a great deal of stricken and new countries, and then seek to
collect more
charity will be necessary.
However, given a good season than these countries can
pay out of their favorable
restoration
"countries.
The
s
this evince any
time
:
•
The British proposal for an international clearing sys¬
buy food, as enables them by any amount of privation to tem seems quite all right for the best interests of the British
-remain alive and in working condition, they will in a short
Empire and I see no reason why they should not hold to it.
time have raised as great a
produce, and acquired collectively The debts of the British Empire countries will be large but
as
great wealth and as great a'capital as before; by the mere manageable.
The banks will be sound.
If the bonds de¬
continuance of that ordinary amount of exertion which they cline in
price the owners will just take a capital loss and
;;
to
are
Liquidation Qf NYA
Urged lit Labor Dept.
$68,564,436.36
1
tv>\
303
\
When inflation Gomes, Deflation Cannot
^
Behind
likewise
establish
and look upon
i.pc/;. jnvr
i!) v> 1 f
investments
financial
practices
foreign investments of capital as permanent
from
which
will be
income
derived
from in¬
creased
production or we will bring on another collapse of
the international exchanges just as we did in the 30's.
We
were among the greatest losers as a result of the breakdown
of the international exchanges.
We lost a large part of our
foreign investments, we reduced our own standard of living
of
vM "-.
Deflation and pebt Payments
After the Civil
ig||tt^l||||
international
sound
y
.
(Continued from page 308)
,
i;>m'v,vtiv
i v
THE COMMERCIAL & FINANCIAL CHRONICLE.
war
we
returning the dollar to
followed the admirable policy
par;
and paying the debts.
Europe
struggle against inflation and debts lasted for about
40 years.
This was a period of deflation, declining prices and
business
depression; ^ After j World . War I the United
States, the British Empire countries and many neutral coun¬
tries returned to sound
money .and accepted deflation ias wise
policy. International debts were defaulted on the part of
many countries who decried the policy but claimed that at
the
through the collapse of the the time there was no other solution until the creditors were
international exchanges and trade.
willing to take goods for payment. If this war is followed
The stabilization of the currencies is the first essential, by an abolition pf tariffs I venture to guess that the British
but the first step
in
currency
stabilization is for each
coun¬
Empire countries will
those that
can give or a
group of currencies through
international stabilization fund.
But the burden of re¬
sponsibility and
success rests upon each individual
Gold will remain, as it has been for generations,
form international currency
of the world.
country.
the uni¬
The size of each
individual unit of currency or the name makes no difference.
Debts and Taxes
After
Federal
World
debts
War
I
amounted
and
to
about
26
billion
loans
the
We
dollars.
aided the rest of the world to stabilize their currencies.
loaned
We
them
gold and sold them capital and consumer's
goods on credit. We became the world's great creditor na¬
tion.
But we held onto our high tariff policies.
Investors
demanded protection from the low costs of production of
foreign countries, labor demanded that their jobs be pro¬
tected from the cheap goods of European and Asiatic labor,
the farmers demanded protection from the low
prices of
South America, Australia and Canada, and we proceeded to
shut the door to the collection of the proceeds of our
foreign
investments in the only way that they could be collected—
in foreign goods." This policy brought on wholesale defaults
on the
part of our foreign borrowers. In the meantime we
created
domestic
prosperity by selling our production
abroad on credit, paid off 10 billion of our domestic Federal
debt, inflated our bank deposits more than 100% and grad¬
ually reduced our foreign trade as our foreign borrowers
were unable to
buy or pay. Our domestic credit-inflation
created a large measure of false
prosperity and collapsed
with our foreign securities and the;
foreign exchanges in
the early '30's.
\
'
After this;
problems
war
and the reconstruction our; foreign
debt
not be so large owing to lend-lease
financing. Foreign countries will need plenty of our capital
and consumer
goods provided we are willing to sell them
may or may
If
credit.
on
know that
we
we
do sell to
cannot
foreign countries on credit we
gold. The proceeds must
collect in
be invested in the
capital and productive facilities of the
foreign countries and we must accept pay in the goods pro¬
duced.
All this will
abundant
make for lower prices and a more
supply of goods in the United States, and the whole
world for that matter.
The statesmen of both of the lead¬
ing political parties are promising these global results. But
the economic and political repercussions are
yet to be dealt
with. The labor unions, the farmers and the investors who
have
given their all to win the war will have something to
say and will say it at the ballot box.
But what of
our
Federal debt?
this debt will reach the
be
these columns:
in
sum
paid in honest dollars?
honest
and
will
estimated that
O.
Glenn
Can it
Saxon, said
in
"It can, and must be borne and redeemed
if we are to avoid national
dollars
dictatorship."
man
It is
of 300 billion dollars.
Dr.
agree.
bankruptcy
With his clear-cut" demand any honest
It would be an unthinkable fraud to
cheapen the dollar
her
currency.
even as France cheapened the value of
What gratitude for the buyers of savings
bonds, the soldiers who will return with small savings and
small pay, and the millions of
people who have worked and
saved only to find that it was all a fraud?:
Cheapening the
dollar,
pay
and
war
and
repudiating the debts won't do. We
in honest dollars or face consequences
or
must pay
more
and
serious
disturbing for generations than the hardships of the
Britain will pay her domestic debts
restore sound
money,, and the policy as advocated by
itself have been.
Prime Minister Churchill in his radio address of March
21,
in my opinion has had a
disillusioning effect
our
would
upon some
of
be
repudiators and inflationists.
Britain feels
her responsibility to the investors in war
bonds, and the
returning soldier and has announced so to the world. Will
likewise pay and pay and stand the
hardships? This is
the best policy, but it is not a road of ease and leisure nor
we
is any
other solution.
pay their international debts,
defaulted after World War I.
even
tv < i
(u' <. V
<
Seen Freedom Threat
of
paying off even half of 300 billion dollars debts over the
next 50 years?
This seems to me the only sound solution,
but will the taxes and the
deflationary effect of these pol¬
icies of sound fiscal finance and
money hurl our economy
into a period of deflation similar to that
following the
Napoleonic wars, the American Civil war and the first World
Because of the greatly improved production
capacity
business, and the speed of communications and
transportation^ it does not seem necessary that we repeat
of modern
either the mistakes
times
these
hard times of these
or
past periods.
be shorter periods of hard
and even defaults can
hardly be doubted. However
periods of depression, will be lessened by the courage
Nevertheless
that
there
may
and determination to
pay our
debtors pay
to know
debts
theirs..'. It would be
a
as we
(Continued from first page)
rights and responsibility is reviv¬
ing all over the country" and that
"the States are, as never before
in our time, showing a capacity
for good government."
Of the 40
Governors
the
at
would have
our
great stabilizing factor
exactly what the policy is going to be, and to know
a
policy that we will not waver from or in
that it will be
any way compromise with fraudulent practices but hold
rigidly to. honesty and square dealings.
"anyone
noted,
would
make
of
of
10
Presidents
good
he
them
of
the United States."
Submitting these as "elements
in the present situation"
Prof. Moley at the same time cau¬
of hope
tioned
that
"the
danger of the
federalism is very
personal
new
great."
"When we develop oneparties" he warned, "we are
only a step from a one-man State."
He concluded by urging that
be
kept
that
in
mind
American
there
necessity
"the
citizens
love
who
their country should be
helpful in
keeping party Government alive
and be patient in the efforts of
Congress."
Prof.
Moley's remarks follow
substantially in full:
It becomes my pleasant duty, as
,
.
Trustee of the Tax
a
welcome
to
from
men
These
Foundation,
goodly group of
American
industry.
this
annual
meetings, of which
fourth, are the out¬
growth of requests by industrial
corporations to provide opportun¬
ity for off-the-record discussion
this
of
the
is
technical
and
related
of
matters
taxation
industrial
problems.
At the moment, there is no tax
bill in sight.
But there are other
serious questions that confront in¬
dustry.
These are questions that
may well justify the holding of
this conference,
Reconstruction and Inflation
The cessation of hostilities will usher in
Gover¬
recent
nors' Conference in Columbus,
man
war?
reconstruction
the
were
But what will be the effect
upon our domestic economy
other countries
an
8c I
a
and that of the rest of the world
try to firmly establish its own currency with such help as
(I i >: m j 11
"One-lwam" Parlies
Aft'ir
few years of reconstruction and a boom
growing out ol
railroad building we had at least 30
years of deflation and
so called hard times.
After the Napoleonic wars in
(1
Thursday, July 22, 1943
question of
They include the
for postwar
contingencies and the termination
a
reconversion
to peace
time production and business such as* never before
witnessed.
The job is.inueh; larger; than after World .War
I and far more
costly. The shortage of peace time: goods
exceeds that of 1918 in
of
war
reserves
contracts.
shall
I
...
avoid
any-discussion of the sub¬
ject that brjngs you together, for
the simple reason that I have no
desire to carry coals to Newcastle.
everything from motor cars to food. It has been suggested merely that
The grab for materials and
supplies may be a stampede. I offer you the somewhat pessi¬
mistic suggestion that no matter
Government regulations may slow down the
progress;* But
what the figures may be that you
the volume of business
activity for a couple of years after men of business add
up, so long as
the transition period will
probably make new peace time government provides the adding
records.
After this shprt period of reconstruction and re¬ machines, you cannot be certain
plenishing of peace time needs is over a let down in both that your computations will be
what you expect them to be.
business and prices will probably
duplicate that following
I am reminded of a conversa¬
the major wars of the past.": The time duration of this defla¬
tion that I had, during the Su¬
tionary period should be much shorter than the depression preme Court fight six years ago,
following the American Civil war or the Napoleonic wars with that magnificent old states¬
man of the House of
Representa¬
because of the speed of modern
readjustments made possible tives, Hatton Sumners.
He had
by transportation, communication, new and greater variety not yet made the speech that, by
of economic goods and
popular consent, was the death
opportunities, and the promise of
knell of court-packing, but in the
reduced trade barriers throughout the world.
The period
of readjustment and stabilization after World War I was privacy of his office there was
no doubt about his convictions. He
interrupted by the preparation for the present war and no said to me something like this:
valid
comparison
The
can
"The whole question of what
be made.
are
excess
purchasing
in the hands of the public
may create such a demand for the short supply of goods the
first year of peace that price inflation will
get out of bounds.
Such a rise in prices will correct itself when the excess
purchasing power is spent and the supply of goods increased
to meet the demand.
power
going to
Court
do to
depends
upon
government that
ate.
are
the
The organs of a
determined
by
kind
of
cre¬
living being
the
medium in which that
expects to live.
the
want to
we
we
Supreme
sort
of
living being
If it is
an
animal
The real
danger lies in the excess cur¬ that lives in the air, it will need
rency, bank deposits; and the large amount of the Federal lungs; if it is going to live? in the
water as a fish, it will not need
debt owned by the banks. ; Every bond is
purchasing power lungs."
equal to its market value in dollars, every bank deposit is
Your calculations, I need not re¬
worth its face value in dollars and every dollar is worth what mind you,
depend, in the last an¬
it will buy.: A decline in the
prices of bonds would embarass alysis, upon the sort of economic
society in which you will be ex¬
the banks.
After every war in the past bond
prices have pected to produce goods. You can¬
declined sharply with the return to sound
money and free not be equipped with the organs
markets.
Will the history of money market and bond
prices of a fish and be expected to climb
be repeated after this war? .If an effort is made to restore mountains,
nor
can
you
be
equipped
with-the
organs
of
sound, money policies, interest rates will rise, bond prices an " animal V
and
live
under
will fall and a period of deflation will follow;- But if we are
water.
I
need
not
discourse
unable to stand reality and continue a
monetary inflation upon * the reasons why; the
government
holding
certain
policy in order to maintain bond prices at par and protect
economic views and theories
can¬
the banks at any cost then an era of
cheap money, inflation, not provide the essential
atmos¬
and declining value of the dollar will be inavoidable.
After phere in which business can
meet
,
<
World
War
I
France
devalued
her
currency
80%
-
and
postwar problems.
as
I
If
you
do
that there
If you
believe,
wholesale prices rose to more than 700% of the 1913 level.
By 1935 about half of this increase in wholesale prices was
lost for strictly French domestic
impossible
obstacles, I need not take your
time by telling you what
they are.
of the present war the wholesale
price level had
most of this loss from deflation and was
help
goods but by the beginning
regained
again close to the
inflation
peak of 700% of the 1913 level.
(Continued
on
page
310)-v-
Devaluation and
do
not
you; you
live and learn.
The jobs that
will
•>'
so
are
believe, I
will
r
,
to
/>
American industry
do, however
be expected to
(Continued
can't
just have
on
page
318)
Volume
158
Number
THE COMMERCIAL & FINANCIAL
4196
CHRONICLE
309
A Viral Message'
■
To All Shoe
Buyers
FROM THE
\
r
"d
.'iV 'r
I1', "''"L
i
f
1
,-'t *t\\
.
'
4 ",\x* }»'*'
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+
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4*
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5
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v-"*'.
' J
1' **
> '
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V
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<C
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'
i*
'
j
'
-
'
,\
>
v
r> -t
!/
,* 7; ,;\t
.
'.! I •}■, I1«,"}
j1
£
rjA
'
;
1
1
1
■
(
*
u
International Shoe Company
4
i
777
y
? j. J
B'ECAUSE there has been
make
considerable misunder¬
more
shoes
were
standing regarding the quality of shoes now avail¬
quality—but quality is the
able
—and this company is
to
civilians, it is important that
you
become
acquainted with the facts.
Perhaps this
message
At present^ our
helpful
Government has first call
there is still
shoes
standards; Only' the best materials
workmahship dire suitable. Neither
would have it otherwise.
But—does that
shoes—are
mean
continue
and;skilled
•
•
•••'•
at
all—you
can
honor and Integrity
X'i\
you nor we
as
well
as
•
,
:
•You
Victory demands it.
7
to
•/•
•
armed forces,
We
to
good,
assure you
••..
•
•')?"/".
77
'
-f,v
V*': '
•
•
■
<f\
that
•
<v
;.r
we
return
.
•
...
:
-.•»»!
may
company.
continue to
St.
men, women,
and children by this
wearers
of
shoes.
<$Lx*JO
CHAIRMAN OF THE BOARD
.
'
St. Louis, Mo.
Louis, Mo.
F riedman-Shelby
Dorothy Dodd Shoe Co,
Continental Shoemakers
Coniormal Footwear Co.
Pennant Shoe Co.
Hy-Test (Safety Shoes)
Winthrop Shoe Co.
Jefferson Shoe Co.
Roberts, Jphnson & Rand
Vitality Shoe Go.
Peters
Queen Quality Shoe Co.
•* ••
International Shoe Company, St. Louis, Mo.
other shoe manufacturers, could
77
k
i,
have confidence in the
We shall keep faith with the
Sales Branches
7
full.
still buy good shoes. The
of the International Shoe
Louis, Mo.
will:
7 7■
INTERNATIONAL SHOE COMPANY
$t.
serv¬
essential
meet
manufacture shoes that will
»v*.-,v
shoes made for
good shpes—dependable
Company stand behind that statement.
We,
our
value for your dollar—and satisfactory shoe mileage;'
our
Not
:
y7<',:7,\v'v77--7~"
be had by civilians? r- *
not to
'■
not to use pres¬
sufficient quantity of
a
civilian requirements.
built according to rigid government
are
message
product—standards maintained for
iceable shoe material available
forces. These
of this
for lowering the moral
Despite heavy demand from
on
shoe materials. Millions of pairs of shoes are being
manufactured annually for our armed
determined
disregard
to
than forty years.
more
to you. : i
essence
as an excuse
standards of its
from America's largest
manufacturer of shoes will be
conditions
ent
willing
we
•
Manchester, N. H.
Sundial Shoe Co,
Great Northern Shoe Co.
Interstate Shoe Co.
Metro-Craft Shoe Co.
.V-
V.*'.'
THE
310
COMMERCIAL
Exec.
;;
•
prevent deflation and depression in France
greatly increased the amplitudes of inflation and defla¬
«,
,
we
duration
board of directors
to
boom perhaps two or three years at
must expect substantial deflation.
However the
of this deflation depends on the monetary policies
statement
a
the
of
Chairman
of
and
the
to
Edward C.
press,
of the
Board
bank
said,
Crandon is
a
"President
with
the
the
spirit
of
may
fest
United
to
invest your capital and your savings if
their
'
J
'
be in doubt
long period of time but con¬
>
-
analysis of the results from investments in the high¬
grade bonds of the many countries that went through
inflation and devalued their currencies
investor
lost
in
after World War I
purchasing
over
power
a
period of ten years roughly the percentage of the currency
that did not devalue show that the loss in
20^ and in most
than
more
amounted
no case
In the countries that did inflate and devalue their
cur¬
stocks were not a satisfactory, hedge but
far better investments than bonds. A select list
of common- stock investment as of January 1, 1914 such as
were actually held by investors in the United States would
have shown the following results as of January 1, 1928:;
France a loss of 66% of the original capital value of the
investment; '""permany: 50 %..;.. Italy 55%; Austria 72%>:
Belgium 38%; and Hungary 77%.
Interest payments on
the bond investments in many cases ceased and the value
of all interest payments declined in proportion to the devalu¬
rencies
they
common
were
.
of the currencies.
ation
stocks
mon
known civic leader.
He will
serve in an
advisory capacity .do
ly
While the dividends
the
on
com¬
declined
during the inflation depression, inperiods the increase of the dividends was very
•'
the recovery
satisfactory.
Similar investments in the
Assis¬
senior officers -and as
our
President of this bank."
tant to the
Regarding
the
>
of
activities
.
Crandon
First Na¬
tional Bank of Miami since. 1940,
Mr. Crandon is President of the
Crandon
Wholesale
Drug.. Co.
which he established in 1916.
He
is
Mass.
the Finance
native of Acushnet,
a
He
is Chairman of
County
Dade
the
of
Committee
and has served as
County Commissioner continuous¬
ly, for, 14 years.
He has beert
prominent in- the artistic and cul¬
tural development of Miami and
particularly
in
and musical
circles.
He organized -the county
park system and is a director of
Fairchild Tropical Garden.
One
of the largest parks i'rf the nation,
now being developed on Biscayne
Key, opposite the mainland of
Miami, has been named Crandon
Park in his honor. He is President
Dade
County,
.
plans
beautification
is
ever was
some cases
showed
an
200%.
Most of this capital gain how¬
lost in the collapse of the securities markets in 1929
as
i
of
tion in Dade County.
man '
of
'He is Chair¬
of
Board
County
the
assuming
and
up¬
duties as, executive
Vice-President
also elected to
was
investigation conclusively shows the advantages of
investing in the securities of countries that avoid both cur¬
fee
Ga.,
in 1906 in Cof¬
and was As¬
Cashier of
the Brunswick
County,
sistant
Bank & Trust
and credit inflations.
The
CHRONICLE
invites
the views expressed
related phases of the sub¬
Comments should be addressed to Editor,
by Dr. Wright, in this article,
ject under discussion.
comments
on
or on any
Commercial and Financial Chronicle, 25 Spruce
Street, New
York!
Co., Brunswick, Ga.,
immediately
rency
prior
Miami
own
in
real
Miami
1919.
to
to
(t
his
investments
in
handled
He
estate
coming
from
has
Reeder
Mr.
and
Hialeah
of
served
from
he
sioner
Urged
To Join Fed. Deserve
The
New Jersey State Banking
Advisory
Board
on
July 7 again
urged all New Jersey banks and
trust companies not members of
the
Federal
take steps to
ship.
i
Reserve
System
to
obtain such member¬
Deputy
Banking Commis¬
John
T;
Connolly, Secre¬
affiliated
said that
institutions
were
un¬
urged
to
join the Federal Reserve Sys¬
tem last Sept. 11, but that the re¬
sponse
Board
far
has
not
been
what
the
thought it ought to be.
As
Ac¬
for 15 years.
estate business
tive
in
affairs,
Mr. Reeder
is
charter member
he knows, only one or two
banks have entered the system
as
since
added.
September,
Mr.
Connolly
It
other
ficial
Bank
is
also
announced
recent- addition
to
'
Wars and the
Legion, and is a past
of
erans
Foreign
American
Harvey
the
of
commander
Seeds
organization. He
Post of the latter
has been a member of the Rotary
25
for
Club
years."
,
that
<
the
an¬
of¬
family of The First National
of
Miami
is
Clifford- H.
possible"
the
produc¬
during
the
war
of
The
First National Bank of Miami in-,
elude Laurence Romfh, son of Ed¬
ward \,C.
Romfh,
Chairman
and
President
the
of
*
Cashier.'
Board;
The
that
Commission
by Mexico, with
sentative of
Alec
Between Mexico, U. S,
Orderly
development of elec¬
Steel;
rubber,
cement,
chemical, textile, sugar and al¬
cohol, and pulp and paper indus¬
tries, were considered so the in¬
dustrialization
tions
on
terials
and
States
and after the war
maximum
development
of
the
nations"
both
July 18 in
a
urged
on
report by the Mexi¬
Commission'
can-American
Economic
was
'Co-operation :
at
the
of
use
critical
ma¬
and, equipment during the
war."
Rosevelt's
referred
was
trip
to
in
to
our
issue of April 22, page 1490.
June War
co-operation be¬
United
"proceed
may
rapid a pace as possible con¬
sistent with the necessary restric¬
as
Expenditures
Were $7,7 Billions
Mexico during
"for
as
trical,
Urged In Joint Report
; the
the United States
member, to develop and carry
forward long-term programs for
President
Cooperation
Full economic
be
repre¬
a
a
Mexico
tween
recommended
industrial Commission
an
created
r
.
Economic
be
to
are
attained."
industrialization of Mexico.
'
Presidents
Vice
Other
for
made
public in Washington.
A report to President Roosevelt
and:
President
Avila
Camacho
"
War expenditures
States
by the United
Government
during
the
of June amounted to
month
$7,~
688,000,000,
000,000
increase of $315,-
an
May,
over
or
Production
Board
July
The
14.
4%, the War
announced
Board's
on
advices
stated that "the average daily rate
of expenditures in June was
$295,-
'
'
700,000 compared to $283,600,000
v
/
exploitation or in May,- also an increase of 4%;
economic
imperialism,
whether The daily rate is based on the 26
by nations or by powerful private days in each month on which
were
cleared ; by -j the
groups; are past—no future Mex¬ checks
said:
'
"The
days
of
United States government
ican
or
will
condone
or
permit their re¬
ments
and
the
by
after
two
President
President
conferred "in
■
Avila
govern¬
Roosevelt
Camacho
April, the Commis¬
?'•
;
The WPB announcement further
i
'
"Expenditures for
%
war
purposes
for the fiscal year 1943 amounted
to
$75,100,000,000, or 2.7 times as
as
the $28,300,000,000; ex¬
pended in fiscal 1942; and eleven
much
times
as
much
the
as
$6,700,000;-
000 spent in fiscal 1941.
"From
1943,
war
July
1,
to
l\
i\
June,
inclusive,
purposes
Government
•>
i
1940,
expenditures for
by the United States
amounted
000,000,000.
and fisheries.
"Named
Treasury.".
said:"
v:„
appearance."
?• Associated Press accounts from
marine
.
and
make
"present modest goals
of the Vet¬
a
civic
that
v,
,
con¬
-
was
Bank of Miami."
tion
to
"will
supplies
deliver
equipment
10
.
tary of the Board,
pur¬
City
as
-
N. J. Stale Banks
United States
to
tinue
1929 to
date to
1933, Washington/in its advices in the
appointed liquidat¬ matter further reported:
ing agent by the State Comptrol¬
"Recommendations for Mexico
ler of Florida. Duties of liquidat¬
included full development of food
ing \the Bank -of Bay Biscayne;, supply, immediate and long-range
Biscayne Trust Co.! Trust Co. of industrial projects, concentration
Florida, Guardian Trust Trust Co; on production of war materials,
and Dade County Security Co. oc¬
a
program of public works proj¬
cupied his time until he became ects, and expansion of transpor¬
affiliated with The First National
tation, communications, merchant
when
in¬
Commissioner of period.
The
United States undertakes
Miami, and his present term of of¬
fice will expire in 1945.
Four of it added, to supply necessary re¬
those years he has served Miami pair and replacement parts unob¬
as Mayor,
from 1929 to 1931 and tainable from other sources for
from 1941 to May of this year. He the agriculture
program.
New
also has been engaged in the real equipment must
be provided if
which he organized, and
Bank of Miami since 1941,
on
States
$141,000,000 to $179,Her imports were $59,-
the
and
President of the
was
Bank
of Miami
Bank
1934.
Dade
the
his banking career
This
He
State
years
under 'construc¬
will Connect Miami
and Biscayne Keys;
the board of directors...He-began
and 1930.
the
member of the
a
mittee
Health,
much
10 years.
First
now
which
tion,
Taking select investments in common stocks of these is a trustee of the University of
countries such as actually held by investors in the United Miami.,' In 1929 he received the
civic achievement award from The
•States in January 1914 and maintained until
January 1928 Miami "Herald," and in 1938 won
showed a regular income from dividends, and with
very the Greater Miami citizen award
"substantial increases in the 20's.
The capital value of the from the Miami "Daily News." •
"Mr.
Meeks
has
been
Vicecommon stocks held
through this period did not show a loss President of The First National
of these countries and in
the 'United
to
from
will continue to concentrate on
production of strategic materials
after
field
„
executive com¬
County De¬
fense Council and was responsible
for the first war bond organiza¬
as
im¬
State3
tant items Mexico desires to
and returns to the banking
an
absence of nearly
years,
1
to sound
.increase of
Mexico's
United
.
Baker, George B. Romfh, William
tion, which he organized to ; pre¬ rCt
Hill; C. E. Klugh, H. F. North¬
nationally and internationally
rop, C. C. Nielsen and C. E. Buker.
known artists in recital in Miami.
David B. Alter, Jr., is Vice-Presi'
"Mr. Crandon, was the original
dent and Trust Officer, and Olin
sponsor
of
the
Rickenbacker G. Symons is Vice-President and
with Virginia
for any one
Vice-
sent
countries that did not devalue their currencies but returned
money and honest .payments of their obligations
would have maintained the investor's purchasing power with
a
regular income and without default throughout" the period.
These countries included Sweden,- Switzerland, Norway,
Denmark, Holland, England, Canada and the United States.
said
the
connections chase, the report said, contributed
to her balance-of-payments prob¬
the advices from the bank state:
"A native of Athens, Tenn., Mr. lem. -j
Reeder has lived
in
Miami 31
Mexico, the Commission said,
Music Associa¬
of the Miami Civic
Causeway,
highest grade bonds of the
conclu¬
As to his
President.
The
of
director
"A
Commission,
much less.
cases was
the
000,000 in the first four months
6f v this year and - exports $73,000,000.
The
increase
in
imports and
Reeder
elected
was
who
successful in business
Similar investments in the bonds of countries
devaluation.
take
to
"restricted availability" of impor¬
character, eminently
and a wide- Reeder,
sterling
of
Clifford H.
Meeks
and Meeks the
announcement from the bank says:
.
An
the
Carl
Charles H. Crandon
Messrs.
should be avoided.
that
the
mani¬
from $159,000,000 in 1941
$147,000,000 in* 1942, while her
000,000.
Most
is to encourage chaos.
effect
report
from
exports
For the mass
and strictly honest financial policies.
into
creased
t
,
vigilance and management are necessary. The pres¬
ent large volume of short term investments in this country
is extremely dangerous.;
A sudden movement of this vast
short term capital investment or flight from the dollar would
create a crisis such as we have never seen.
Any such fevar
to
to
We should expect sound
policies.
investments must be made for a
shows
and
America
shrank
Would it
stability and production to know what the policies
.
stant
est
Mexico
of
determination
carry
ports
policies were
to
and
sions" in the* report.
Deflation, Which?
you knew what the future money, debt and tax
to be?
If you do not know how will you invest?
of investors
of
States
The
money
friendliness
without delay the necessary steps
Investing to Hedge Against Inflation or
We should know the
said
indeed
"are
the
to our national welfare.
to be?
conclu¬
Roosevelt
understanding."
governments
are
ex¬
satisfaction"
"A joint statement released by
State Department said
"the
History leaves no doubt about the wisdom of
policy and paying our debts with
popitical expediency of the times
lead to the adoption of policies permanently detrimental
further
Camacho
commission's
a sound money
honest dollars.
But the
;
Avila
President
mutual
the
to
■'y
the recommendations
in
keep stra-4
flowing
"sincere
sions.
man
time
same
"'trade,
by the war;
States.
pressed
Romfh, President and
"Mr.
the
kilter
materials
United
named Executive VicC-President.
was
out
at
tegic
pursued.
pursuing
How would you
Mexico's
correct
international
June 22, when Charles H. Crandon was elected
on
Vice-President and Carl Meeks
,
After the post war
most
V.-P.; Grandon &Reeder Named V.-Ps.
important changes in the official personnel of The First
National Bank of Miami, Florida, were made at a meeting of the
In
v
1
.
seeks
disturbed
Two
inflation did not
tion.
sion
thrown
Be Far Behind
but
Thursday, July 22,. 1943
First National Bank Of Miami Elects Meeks
When Inflation Gontes, Deflation Cannot
(Continued from page 308)
'FINANCIAL' CHRONICLE
■&
"These
$110,-
-
figures
penditures
to
by
Reconstruction
cover
the
war
ex¬
Treasury: and
Finance
Corpora¬
■.;» '
tion and its subsidiaries."
—iwiwW^www,.,
Volume; 15S
yH^«OMMjEI?CIA^;^^INANCIAIi CHRONICLE
Number 4196
losses
NY City
Hiring More Workers i
But
Upstate Levels Off
of
areas
upstate
New
plants
during ;;: the
past/ three
months, t according to the New
State Department of Labor.
In New York
City, where the
re¬
cruitment
labor
yet
present
of
serious
a
does
not
problem,
war
industries have continued to hire
additional workers.
in
Employment
plants throughout the State
war
has been characterized by a shift
in
the
employment
with
women
the
of
and
men
-
and
more
of
more
entering the armed ser¬
being replaced by women
workers. During the past year the
men
vices
number
of
employed in
plants in the State has more
Buffalo;
,
•
and
*
Rochester
.
small
very
.
women
New York
Y For
Y/;Y'T>
City
fourth /' consecutive
the
month, employment in the metals
and
machinery
industry in New
City showed a fairly large
increase.
This
gain amounted
to 2.1%
from May to June, ac¬
York
Form Group To
Aid In
Settling Claims On
Foreign Properly Loss
National
The
Foreign
Trade
-
as "a
policy-forming group," rep¬
resenting the. private interests in¬
volved, and as the instrument
through which the individual may
seek the benefits of united action
in
departments "concerning the prin¬
ciples to be applied in seeking res¬
titution of, or compensation for,
losses and damages suffered." The
committee, it was stated, is not an
agency to handle and negotiate the
settlement of individual
claims,
"this being
a
matter of direct
dealing between the individual
claimant
and
appropriate Gov¬
ernment departments."
Y.:Y;
"The committee objectives are:
"1. To determine the principles
•
Council, New York, announced on
July 10 the formation of a foreign
higher for the group; than last property holders protective com¬
which should govern calculations
June / and payrolls were 46:2% mittee to facilitate the establish¬
of the amount of loss, the formal¬
greater.
Aircraft plants had the ment and collection of claims by
ities required for establishment
largest/ increases for the month; American corporations and indi¬
of proof of loss and the manner
shipbuilders
also
hired; more viduals suffering losses resulting
in
which
compensation
should
from v wartime
workers. * * *
destruction and
take place.
'
'Y Y; Y
seizure/'
The Syracuse district/had the
"2. To
Y The committee, organized by the
present the principles
largest employment increase for
companied by a 1.8% increase in
payrolls. Employment was 25.5%
than
«
the month of any of the industrial
areas
throughout the State;? The
Council
in
consultation
with
its
-
anced
reoccupied by the Allied nations
be
may
adequately
delay."
without
mentioned
above
to
the
United
members
-
Dividends
paid
Feedral
regional
Banks for
the
by
New
"The
of
ment
York
first
nounced
two
on
of
clare their
increase
an
a
14.4%
of
basis, he said.
is announced
tion,
owner
stock
in
$249,144
thrift
of the
to
and
home-financing insti¬
System,' including
savings and loan and homestead
associations, - cooperative
banks*
mutual
savings
and
insurance
companies.
tutions
of
Since
the
they
were
a total of $20,310,127 in dividends
—$15,527,075 to the Government
and $4,783,052 to the member in¬
stitutions.
At the end of May,
advances
total
of
amounted
bers
of
repaid.
to
.
over
Aver¬
tabulations
final
covering reports from 3,172 manu¬
throughout
firms
facturing
State.
/
■
_
•/ "Among the
the
_
Because
civilian goods in¬
the largest employment
May to June were
dustries,
op the increased" wartime demand for petroleum
products, America?s
from
•losses
The Pure Oil
Payrolls' advanced in all J of It he
non-durable goods industries ex¬
staff of
t i
•
leather
and
apparel
ucts."
prod¬
/
Decline
smaller
than
industry
for the
last year. The em¬
period
same
ployment decrease amounted to
>2% 'this year compared with an
38% loss in 1942.
The payroll
decline
it
last
only 1%, whereas
was
24%
Was
's
-iY'v
•
-
v :.V'~
from May to June
Although dress manufac¬
turers
laid off many workers,
there was a general wage-rate in¬
crease
in the dress industry of
about 6%.
The coat, suit and
Skirt houses were busier as they
Started work for the fall season.
A few of the larger men's tailor¬
ing firms upstate reported in¬
creased activity. Employment and
payrolls continued to decrease in
piost other/branches of the ap¬
parel group. *
'
year.
a
Y<-
due
•
for
the
YV'Y
them. With plane tables and stadia:
a
geolo- * rods they
gists. -To. these men' much of the
is
'?■ YYY/Y ."V./-•Y Y
Y: Y
Company employs
than 100 skilled
more
record in
from May
in the clothing
much
was
*•••.'• Y'
'•
in
"The seasonal decline
June
/.**>»
credit
Apparel
Industry Smaller Than Usual
Seasonal
to
are
being drawn upon more rapidly than they are being discovered.
parel groups.
Employment was
slightly higher in the food, fur¬
niture
and
printing / industries.
cept
of crude oil in the ground
reserves
by the tobacco and ap¬
reported
are
tion, from
border
Canadian
outstanding
explo^
;sher locking the
{ .Mexico^ \h
to
Gulf of
the
search of new oil-produc-
development of Pure Oil properties
ing
during the past 28
seismographs they are injecting
•
Last year
these
was
years.
through the efforts of
The Pure Oil
men
again able to show
a
Pure Oil reserves,
were
than
greater at
at
the
made
substantial
■
beginning of 1942.. ..
>
into
deep
the
of "new horizons."
for- civilian
after the
man-
of already active
Supplying the bil
and
year.,
strata
quest
and
magnetometers
earthquakes
fields in
"
below ground,;
the end of the
With
subsurface
Company
increase-in oil reserves.v
areas.
na-
from the
coast to coast,
peace,
is
we
need' for
needs
a
war,
now
Our geologists and production
.
and
herculean task,
food
substantial
t
industry reported
Today the oil
tiofrias
reserves
a/ wholeiiafe;
PureOil
-
geologists
termined than
of
gineers have accepted the challenge,
our na-
dimiffi^ihg^{aiid-
ever to,
are. more
-de-
help replenish
;
.
pid :qaff be ^counted/on to/dcr tjieir
;
part to .help
bridge the
supply and demand. Y
gap
"
between
"
*.
0.4%.ucts,
a
payroll gain of 3.6%
while employment increased
only
•one
Producers of dairy prod¬
sugar and beverages
em¬
•
and canners hired
{ a few more, while candy and mac¬
aroni factories curtailed activity.
In
packers
the
chemical
•
industries,
em-,
ployrhent increases in plants mak¬
ing cosmetics, soap and linseed
oil
were
more
than offset, by
,
Company, U.S.A.
GOING DEEPER... To
ployed many additional workers;
meat
::^0& *rm
vatt:-
-MXm
■
-
•
^Il*W
**4NY
YYY
<s«^> •*>*IMf ■*"■•»*& *"
Mjfc,
—*•■■ —««*
|nk^~c««f
BBML.;-
,
"The
>***&*
^
SW^** <r*H»'-"*a*m- •«•»«»» -•***
en-
help meet the na¬
tion's growing need for greater oil reserves,
Pure Oil production men are drilling to "new
horizons?/- deeper oil-bearing formations—
wherever possible today.
Y
Federal
mem-*
$1,007,214,459,
$927,993,100 had been
which
age weekly earnings were $44.72
this month compared with $37.68
a year ago.
The above statements
on
the
Home Loan Banks to their
of 1935-1939 as 100 and
prepared by the Division of
Y based
established
than 10 years ago, the Fed¬
eral Home Loan Banks have paid
more
average
are
de¬
a
Banks and
3775
member
the
May and of 35.7% over last June.
indices are based on the
Statistics and Information.
on
Government's
These
are
other
the regional
June
1%
of
increase
an
The
$583,054 went to the
Finance Corpora¬
The payroll index
287.7 this month, which rep¬
resents
1943
Reconstruction
year' ago.1
Was
of
yearly,
Of this amount, it
159.4,
over
the
Loan
Banks
dividends
increase of 0.1% from May and
an
half
July 17.
regional
the
of factory
employment for June was
of
amounted
to
$832,198,
James
Twohy, Governor of the Federal,
Home Loan Bank
System, an¬
State Depart¬
Labor's index
10
Home
in
increases
protected
Federal Home Loan Banks'
Dividends At $832,198
plants.
war
>
employment
that the property, rights and in¬
terests in territories
occupied or.
representations to Government
having property hold¬ States Government and, when ap¬
tripled, so that women now labor
ings in enemy and enemy-control¬ propriate, to other* governments,
shortage, however, is be¬
led countries, will seek "to avoid so that the interests of foreign
comprise 24.2% of the total num¬
ginning to make itself felt in this
ber in the metal and machinery
the difficulties that arose follow¬ property
owners
may
be ade¬
district so that expansion in war;
group. •'
• '
•
•
ing -the last war iil establishing quately taken care of in the peace
plants has been cut down to a
j
The
proof of claim, and to prevent a treaties or other settlements.
Department's
announceslower
pace {than : during :/^thb
"3. To gather and collate all in¬
inent ol July 15 further explained:
repetition of the inordinate delay
earlier months•• of, the year/:.*; ,,*" *
in the settlement of these claims." formation pertinent to the proper
*Y "From May{ to June there was / War production;-has! assumed
v Iff'/ttie'^New - York/ "TimesY of prosecution of claims so that all
a slight drop in total employment
increased importance in the BingJuly 11, the following additional participants may be adequately
in New York City and a small in¬ hamton
Endicott
Johnson City
details were reported:
informed
of
the
treaties,
laws
crease
upstate.
The decrease in area in recent months. From May
/'Participation in the activities and regulations in the various
New York City was principally to June total
employment for the of the
committee, however, will countries and territories.
the result of the seasonal de¬ district increased
0.7%
in spite
not be confined to members of the Y "4. To
maintain close
contact
cline
in
the
apparel
industry of
a decline in the shoe industry.
Council.
The body will function with the; proper' authorities
so
which
more
than
counter-bal¬
war
,
Both
Showed
York
has been reflected by the stabili¬
zation
of
employment : in war
York
•
•
The manpower shortage in cer¬
tain
among
those • producing
industrial. chemicals > and
employment
fertilizers. > In the stone, clay and gains during the month. • Because
glass group, manufacturers, of ab¬ of the labor stringency in these
rasives "and- insulators
reported areas, a general leveling off of
increased
production . but those employment has been evident for
"
•
making building 5 materials cur¬ the past few months. Y \
tailed operations sharply."
drugs,
.
-•was#*1
THE COMMERCIAL
312
Over-tbe-Counter Trading On The
Securities Exchanges
& FINANCIAL
CHRONICLE
Thursday, July 22, 1943
of this well .established- system of over-the-counter markets
which the public'has
developed would better serve "the
National
public interest" than it is now-being served...
:
;
'
31,774 New Freight Cars
Class I railroads
July 1, 1943
on
There is much
misleading propaganda put out under the had
31,744 new freight cars on
pretense of "the public interest," and the "protection of the order, the Association of Ameri¬
.
(Continued from first page)
exchanges whose transactions are largely in securities of
investor."
&
national interest, and on which price changes are actually
The Securities and
determined by transactions, would be limited to the New
Exchange Commission should define
York Stock Exchange, the New York Curb Exchange, the fully what these terms mean in the law, and the definitions
should be in language that the investor and the
public can
Chicago Stock Exchange, and the San Francisco Stock Ex¬
understand and noUin phrases, for
lawyers to quarrel over
change; Oh these stock exchanges there is a large volume
of transactions in securities which have predominately a and politicians to make propaganda out of.
; 1 •
If it was in the best interest of the public and the inves¬
local market interest.
Unhappily there is a large number
of securities traded on all these'exchanges which could not tors to change the existing system of
trading in securities
both the dealers and the investors would demand those
qualify for an auction market.
changes once the SEC, or the exchanges or any one else has
Functions of the Markets
made sufficiently clear that the
public would gain by the
The New York Stock Exchange is an auction market for
change or that the investor would be protected. This phrase
can
Railroads announced
20.
■'
This included 3,494
July
on
...
plain box;
2,525 automobile box; 6,669 gon¬
dolas; 17,532 hoppers; 200 stock
and 1,324 flat cars.
On the. same
date last year they had a total of
39,530 on order. 5-;?
-
listed
securities which
for the most
:
On Order By Roads July 1
.
The
1,024
on
Class
July
cluded
and
1,
1,
order
which in¬
five electric,
year
steam,
Diesel
had
also
on
On
locomotives.
1942, they had 917 loco¬
motives
350
railroads
this
506
513
July
I
locomotives
new
order
on
steam
and
which included
and
electric
567
Diesel.
of national "to protect" the investor is a
dangerous one. ~ What, does it
The Class I railroads put 9,415
interest.
The Curb Exchange, the Chicago Stock Exchange
mean? It does not mean to protect the investor
against new freight cars in service in the
and the San Francisco Exchange all have listed securities
loss from price changes, or
against economic changes which first six months of 1943, com¬
which are of national interest but the relative number of
may impair or destroy the business in which he invests his pared with 48,769 in the same
securities of local interest is larger in proportion to their
period last year. Those installed
savings, nor even against ill-advised laws and the attacks of in the six months of 1943 included
total listings than in the case of the New York Stock Ex¬
politicians for selfish gain, which impair the value of in¬ 3,345 hopper, 4,018 gondola, 1,387
part
are
Many of the other National Securities Exchanges
some stocks of national interest but their
listings
and their business are primarily local.
Prices of securities
listed on the larger exchanges, when traded on these local
exchanges, are determined for the most part by the prices
on the so-called
"Big Board."
changed
vestments.
.
v-
..
have listed
The
only
way that the exchanges and the dealers in
over-the-counter markets can protect the investor is to
the
him
the
keep
informed
he
securities
of
all
the
available
information
about
But no dealer
or
laneous
serve
broker has all this infor¬
freight
cars.
New locomotives put in service
in the first six months this
year
totaled
buys and other securities which might
his needs, better.
flat, 135 automobile box, 481 plain
box, two stock and 47 miscel¬
l.,293, of which 200 were
13 electric, and 80 Diesel.
steam,
New
locomotives installed in the
developments seem to be a process of evolu¬ mation.
Most firms in the securities business
depend on same period last year totaled 365,
brought about to meet economic conditions and local investment or
of which 148 were steam and 217
trading services, and a historical record of the
needs.
No one will doubt that the most
qualified develop¬ success of the advice of these
were electric and Diesel.
services, I venture to guess, will
ment of the auction market and
specialist systems are on show that not one of them has been
right 50% of the time
the New York Stock and Chicago
exchanges. It is probable over a
Unify Peru Internal Debt
period of years. And this is no criticism of the hon¬
that in time economic
changes will necessitate the develop¬
Unification of the Peruvian in¬
esty and integrity of any of these services or of the brokers.
ment of real national securities
ternal debt, merging all internal
exchanges in the case of Rather I
prefer to emphasize the uncertainty and dangers loans into one
some of the smaller
which will pay 6%
regional exchanges. In the mean time in all
investment and speculation.
In this connection the a year interest, was announced on
they are perhaps serving a local need, and time, free enter¬
greatest need of all brokers/dealers, investors and the per¬ July 12 by President Manuel
prise, and economic changes should be allowed to determine
Prado.
sonnel of the SEC is a thorough
knowledge of industrial,
their fate.
Any attempt to force these regional exchanges to
In
Associated
Press
advices
financial and business history.
I mean a knowledge of what from
grow beyond the local economic demand will doom them
Lima, appearing in the New
actually happens in the way of failure, profits, losses, and York "Sun" the following was re¬
to costly failures.
the constant change that goes on in all business
enterprise. ported:
The number of corporations in the United States which
"The loans being merged have
The average life of stocks listed on the New York Stock
have sold securities to the public
various interest rates.
Describing
probably exceeds 500,000.
Exchange probably does not exceed 10 or 15 years, in spite the move over the national radio
But only about 1,500 of these
corporations have listed their
of the fact that there rpay be some 50 or a 100
as 'one of the most
important fi¬
securities on the New York Stock
years old.
Exchange.
The total A look at the
nancial measures ever undertaken
corporations that come into existence each
number of corporations whose securities are listed on
All of these
tion
all.
National
Securities
3,000, and
interest,
noi
and
Exchanges perhaps would
doubt half of these
have
no
real
are
not
exceed
predominately of local
national
distribution
of
their
month and the number that go out of business each month
will show that at times many more corporations die than
are born.
This is not only true of industrial
corporations.
Today
securities.
In addition to the hundreds of thousands of
small
porations whose securities
are
not
listed
on
cor¬
have at least ten thousand less banks than
we
15 years ago.
These same conditions of
will be found in all
industry. Once I was
change
told
a
or
we
in Peru,' Prado stressed that''de¬
spite restrictions created by the
world
story of the
con¬
bright.'
are
"He added that the country had
several
external
loans
had
failure
Peru's economic
war,
ditions
canceled
and
had contracted
Credit
opened
no
for
new
ones.
Peru
three
exchange, motor car industry by a well informed man who had
spent years ago by the Export-Import
there is that vast
body of securities representing strong and his life in the
industry and made a fprtune. I can not re¬ Bank of Washington amounting
large corporations whose securities are closely held, such as
to
member the details but it is
$25,000,000
had
not
been
essentially this. Of some 400
the Ford Motor
Company, Corning Glass Works, General
touched, he said."
motor corporations which had been financed,
Analine & Film
only 40 were
Company, and the banks, insurance com¬
panies and a miscellaneous variety of the most desirable then in existence, and these forty had been consolidated into
Construction Contracts
securities from the
standpoint of the investor. In fact many four companies, and of these four only two were then paying
any
of the best investment securities listed
on the
exchanges are
closely held at times that they can not be considered as
meeting the required characteristics of an auction market
dividends.
Yet
so
Where the spread between the bid and ask
prices varies from
one
point to several hundred points, as in the case of Coca
Cola International, an auction market
is not practical.
In
fact it is
misleading to have such transactions on an auction
market.
interested in securities knows, the market
for investment bonds of all
types and grades is largely overthe-counter. These securities
qualify for
ket, and include
a
negotiation
such as all U. S. Government
State and
municipal bonds, the investment
bonds have
Stock
and
a
obligations,
The
more
speculative, uncertain
good auction market
on
and
risky
the New York
Curb
exchanges. But even these bonds have
never been marketed in
any large volume on any of the other
National Securities
Exchanges. The auction market seems
to
serve
tive
best for securities in which
there is
public interest.
and
that
a
successes
and.
have produced
and
the
cars
as
result of the trials and errprs,
a
the motor
have been made very poor. •
function
volume, a
and ask prices
quarter spread.
at
an
no
mation, and
less
the
me
est"
and
to
an
Many
industry, but
car
Now the real
protection.
men
It
can
many more
purpose
of this
changes is to get
or
only protection.
will
be
speculation, if
It is
more
you
risky into the
please,
seems
to
eighth
clear without further debate
high grade investment securities closely held of all
improvement by well wishers who would, by their zeal
new
markets, but it still remains
to be
272,000
as compared with
$3,723,725,000 in the corresponding per¬
iod
1942,, according
to
F.
W.
Dodge Corporation on July 23.
The
decline
seem
ing and legal requirements and delete
proved that the uprooting tion which does
in
the
three
not bear
upon
major
non-residential
were:
building
down 54%, residential
down 50% and heavy en¬
gineering work down 44%. The
greatest dollar declines were in
manufacturing buildings,
public
works,
houses
extremely dangerous
unnecessary
utilities
all
of
miscel¬
buildings,
and
one
which
types of construction which
are
were
pushed in 1942
nation's
war
so as to expand the
production capacity
training
military and naval
facilities.
The report
added:
way
types and the corporation securities of local interest do not to take any measures that might
destroy what the intelli¬
qualify for auction trading. To list these securities on the gence of
society has produced.
exchanges would require a totally different system of trad¬
The greatest service the Securities and
Exchange Com¬
ing organization to handle them. A system has
developed to mission can
perform for the markets is to eliminate the red
handle this business
according to the economic demands of
the buyers and sellers in the
over-the-counter markets. The tape, unnecessary costs, useless reports, simplify all account¬
over-the-counter markets have their
faults, as do the listed
37
and to provide
con¬
country to meet the needs of the investors, specu¬
lators, and the trade and it would
the
months
protected against the' destruction of progress family
protect investors who want to speculate, restrain
in this
in
aggregated $1,851,during
the
first
six
laneous non-residential
hope that "the public inter¬
my
a
an
awards
states
categories
In
as
be matched within
seems
Have
Construction
eastern
The best possible infor¬ building
alertness to get out of the
risky investment
For First Six Months
public certainly is better
understanding of how to "protect the investor."
opinion there is
my
much
cost
failures, losses and gains.
been made rich in
a
large specula¬ developments and thereby destroy capital, profits and
intended an auction sumers' goods: V 5
large number of buyers and sellers
The over-the-counter markets evolved in a natural
To
market needs
where bid
less
at
served with motor
mar¬
grade rail and
very
car
we
information about economic and industrial
As every one
utility bonds.
better
50% Below Last Year
during this time
informa¬
the value of the securities.
a
The month of June showed
only
minor decline of 2% from the
preceding month due primarily to
a drop off of
$22,577,000 in heavy
engineering work. Manufacturing
buildings with a valuation of $53,717,000 was more than double the
May total of $24,206,000 but fell
far below the
June, 1942 figure of
$271,801,000.
June
residential
building,
amounting to $61,508,000,
783,000 below May, but
about
total
a
of
third
of
the
$185,471,000.
was
$1>
ran
just
June,
1942
.
Volume
Tomorrow's Markets
Walter
THE COMMERCIAL & FINANCIAL CHRONICLE
'Number 4196
158
Whyte
stocks and what
The favorites of a couple
they indicate
report on the of weeks ago, the air trans¬
stocks you still hold. ■ United port issues, now seem friend¬
Aircraft, which was recom¬ less. Pan-American indicates
mended at 38, broke its stop some kind of
support "at 37
I'll
give
you a
Canadian Bond Valuations
To
assist
Form
v
with
week
hectic
a
kind of trouble.
Electric Auto-Lite got
up to bought
the
stock
on
the
making new
the 39 price, then fell
asleep. strength of all the money the
news of the
Rome bombing making page In last week's column I wrote: company would make out of
if it (Electric Auto-Lite) the
one
picture, better get out.
stories, the market ac¬
'X; V
quired a new following. The gets to 39 and runs into dull¬ :'/*
ness don't wait for the 37
fig¬
people who had occupied the
The enigma of entire mar¬
Get' out
sidelines so long waiting for ure to be broken.
ket is the steels. * For some
If you haven't fol¬
the classical Dow theory con¬ then."
reason
Big Steel runs into of¬
firmation finally jumped in lowed the suggestion, then
ferings every time it pokes its
don't forget the 37 stop price.
with both- feet.
The result
head into the 59
figure.' The
was
obvious.
Stock
after
only steel stock which tries to
stock made new highs, and as
Fairbanks
Morse, at 39, keep pace with the market is
this is being typed rumors of
still has a stop at 37, but cur¬ Youngstown Sheet and Tube.
still higher prices are
coming rent action indicates the stock Should the
group suddenly
in over the
phone. The only looks "toppy." So better
get decide to come to life I think
thing lacking to make this an out when you read this.
Youngstown is the stock to
both
TFR-500,
tions which
and
in
the
whose
preparation
lists
of
include
may
internal),
shall
we
containing price tabula¬
have just prepared.
we
Wood, Gundy & Co.
Incorporated
If you
1
May 31, 1943
engaged
be glad to send a folder
-
After
those
Canadian bonds (external or
-
some
of
as
last week.
It's and TWA about 22.
true it snapped back but the .V ';rv*
*
*
;
[ Popular fpllowing brought signal has been given. So if
Paramount, which ran up
in by Dow theory signal not
you still hold it—don't,
v
in sympathy with its national
bullish
sign.
Selling
fre¬
publicity campaign extolling
quently appears to be better
Reynolds Tobacco B, now the virtues of its latest
pro¬
than buying.
about 32, was bought at 31 Mi.
^1,
duction, "For Whom The
Keep your stop at 30.
Bell Tolls," is
Py WALTER WHYTE
running into
price of 36
Says
313
14 Wall
Street, New York 5
averages
highs and the
Canadian Securities
.
>k
old-fashioned bull market is
the
absence of market
the
on
front
of daily
pages
*
*
have.
iii
news
Flinkote
price
and
Hold
newspapers.
into
ran
your
the
21
started
to
position
yawn.
but
re¬
member the 20
figure under
Yes, it's very easy to be
which it should not be held.
today, r But because
*
*
*
it's so easy I
again will have
decline the dubious honor
of
following the mob.
For
the market in its
strange way
persists in refusing to be im¬
pressed with either the war
news
the
or
action
of
National
at
31,
world
isn't
acting like
your profit
it a day.
It is true'that stocks have
in¬
stocks you hold.
Now about
the ones you don't have and
respectable propor¬
you take that odd what they show.
reluctance and place it
'. v': 'v
'jJ*
along¬
side the
comparatively few
Armstrong Cork, Bethle¬
stocks which have been show¬
hem
Steel, Borg Warner,
ing plus marks the whole
Commercial Solvents, Loews,
market
will
not
tions.
If
-i!
look
healthy
would
the
first
as
show.
as
indications
Selectivity is
watchword
and
if
you
haven't
got. the right stocks
you might just as well be in
bear market for all the
the Dow
a
good
theory confirmation
does you.-
Before
I
write
National
Yellow
Cash
Coach
nificant
week.
t'f
Register
all
gave
performances
and
More next
Thursday.
—Walter
^The
article
views
Established
do
not
necessarily at
coincide
with
those
any
of
the
They are presented
those of the author
only.]
a*
National
Shipments
Canadian
ceeded
mills
consecutive
tons
a
York
Stock
:
| ,; New
York
York
Commodity
Chicago
With
up
1.2%
the
ago,
United
and
to
the
.New
Orleans
And
Exchange,
other
Y. Cotton
NEW
CHICAGO
of
'fv
Inc.
Trade
99
■
A i. i
WALL
.
-
•
STREET
NEW YORK 5, N. Y.
3.1%
.
,'
•
GENEVA.
4,
Canada
piling
surplus
of
this
on
an
up
of
em¬
U. S.
dol¬
outstanding
quite clear.
the
It will
pressure
situation
maintenance
discount
of
on
the
and
to
ex¬
permit
official
the
Canadian
on
2V4's
serve
10%
dollars
for
time.
a
ingly
were
overseas
users
Montreal, the following
was
also
reported:
production
during
Production
at the rate of 69.6 of 1942
was
capacity,
compared with 68.6% in May and
65.6% a year ago. Shipments thus
exceeded
production
reduction
a
by
11,145
correspond¬
stocks
held
by
Canadian manufacturers.
"Shipments and production by
United States mills declined 8.3%
and
11.5%
respectively from
the
that
exchange
minion
currency
dollars
S.
await
the
In
war.
trols
fact,
unlikely
of
political
removed
U.
to
the
con¬
the
and
supply-demand
permitted
is little
Do¬
to parity with
if
there
of
return
on
conclusion
were
present
the
rate
is
tion
situa¬
function,
to
that parity
doubt
S.-Canadian
exchange
Roosevelt signed on
July 12 the bill releasing Govern¬
ment-owned
silver
for
war
This is but further
evidence of
the strength underlying the Can¬
adian bond market and points to
not
Under
sell,
lease for domestic purposes for
not longer than six months after
the end of the war, any silver held
or
owned by the United States,"for
including but not
making of muni¬
supplying of
civilian needs, and the converting
purposes
limited
to
tions of
war
of
existing
poses."
needs in the domestic market.
is off.
plants
The
those
to
pur¬
also
measure
"at all
pro¬
times the
own¬
or
con¬
trol within the United States of
of
amount
of
silver
an
monetary
a
value
equal to the face amount of
outstanding silver certificates
heretofore or hereafter issued by
the
Secretary of the Treasury
shall t»e maintained by
Of
the Treas¬
*
ury."
•.
Senate
of this bill was
issue
of July
1,
passage
in
our
30.
date
Under
of
Asso¬
12
July
ciated Press accounts from Wash¬
The
ington saidr
majority of top quality provincials l: "Allotments of this silver are to
and the Canadian National Rail¬
be made by the War Production
way
medium-term bonds which Board and the amount is limited
were
available
on
a
3.75%
to to the surplus not needed for re¬
3.35% basis early this Spring have
now
3%.
all gone under
But,
ing
even
2.90%
have a feel¬
present 2.80%-
available
yields
from
prime issues in these categories
are
going to look very good to
American
banks and
insurance
companies before the end of the
year.
This would
so
if,
as
prove
demption
silver
outstanding
of
certificates.
so, we
the
that
par¬
suggested as a
said its stock of
to 1,252,659,026.2 otinces of which 699,819,332.8
ounces are on loan to the Defense
"The Treasury
silver
free
Plant
in
amounts
Corporation,
Federal
a
The free silver total, the
Treasury said, is listed in the gen¬
eral fund at a cost value of $591,agency.
405,379 which would indicate that
the Treasury would make a sub¬
stantial
profit
an
In
We specialize
Aug. 1
and the
ership and the possession
page
ticularly
To Be Set By
the
vides that
noted
of institutional investors
sorely put to fill their
so
"cream"
the
or
the part
the
of
recom¬
mendation of the Chairman of the
War Production Board, could
tion of the values in this field on
course,
Jyme
on
July 5.
the President,
on
the
bill,
acting through Secretary
Treasury and upon the
yet fully awakened realiza¬
are
pur¬
The bill fixes the price at which
the silver may be sold or leased
at 71.11 cents an ounce. The
legis¬
all
■j; would he in sight today.
who
"Canadian
evident
the
U.
a
In Canadian Press advices from
.
of
and
States
122.6%.
Exchange
N.
Y.
Exports—Imports—Futures
PITTSBURGH
SWITZERLAND
Secretary
DIgby 4-2727
of
the
an
earlier
at
sales
on
ounce.
71.11
\
to
reference
the
bill, which was soonsored by Sen¬
(Demo¬
Green,
Theodore F.
ator
Treasury
Morgenthau said on July 15 that
the Treasury will probably an¬
the goal
of the Third War
Loan drive by Aug. 1.
It is ex¬
pected that the campaign, sched¬
uled to start Sept. 9, will have a
somewhat higher goal than
the
Second War Loan drive in May.
This goal of $13,000,000,000
was
exceeded by about $5,500,000,000.
The types of
securities to be
nounce
Exchange Bldg.
DETROIT
date
Third War Loan Goal
Exchanges
YORK
Sale Of Silver
President
cents
SUGAR
N.
Approves Treasury
18 and the House
Newsprint
June, 1942, levels. Shipments exexceeded production by 1,670,000
tons and stocks held by United
States
mills decreased
by that
Exchange
Exchange
Cotton
FDR
lation passed the Senate
fifth
weakness.
LAMBORN & CO.
future.
near
poses and for civilian needs.
barrassing
change
the
sometime
t
Curb
Cotton
Board
July
issue still makes it appear very
the total of
6.2% higher
decreased
the
to
for
amount."
Exchange
of
short-term
attractive.
ex¬
in
.
;vNew
.
5's
only
first call
yield to
1%'s
Canadian
Dominion obligation now avail¬
from
during June
month,
being
year
consumers
those
newsprint
production
268,990
than
of
Members
New
the
was
10-year
own
out then,
the
Railway
1969-44
call
a
pointed
However, it becomes increas¬
ing
H. Hentz & Co.
leaves
call
still
was
1856
such
As
this
reduce
thn
tons and there
terested in any of these bear
the above in mind.
exactly
stressed.
in
expressed
gains. Any slack¬
ening to what military com¬
muniques call ''previously
prepared positions" will turn
So if you are in¬
banks
$30,000,000
month last year.
anything potential
strength into actual
about the action of individual
possibility here before, our
Treasury
were
to
offer
in the
was
sig¬
last week's
last
<£-
of
.
Whyte
last
They all look higher.
of
Finance
Minister
Ilsley's
in redeeming the $76,000,000 of outstanding 2V2's and
June amounted to 257,845 tons, an
increase of 6.2%
over
the
like
But to live
up to their prom¬
ise they: must at least hold
discussion
our
re¬
lars,
Association of Canada reported on
July 13.
Shipments to Canadian
volume to
to
able to
late
the refusal of
crease
entire market is
zone,
is
June 10 in which the possibility
Canadian Newsprint
Shipments Over Output
new
satisfaction
some
Certificates of Indebtedness, the
in a danger
I suggest raising your
highs but the mat¬
ter of
making the new highs stop to 14. You bought the
was
a
simple matter.
Most stock at 16, which is where it
of them were
only a fraction still is.
If,«before it gets to
of a point
away from their 14, Newport manages to ad¬
old tops
already* But what vance to 17, then grab the
is perhaps more
important is small profit. So much for the
made
with
to
able. When compared with U. S.
phase in the
Chronicle.
Newport is slow, and con¬
sidering my belief that the
averages.
is
fer
purpose
take
*
It
that this column
advance in the
the present bull
time
*
big news in the Canadian bond market last week was the
calling of $106,000,000 direct Dominion dollar bonds for
redemption
on
August 16, 1943. The issues called are the Dominion 2y4's of
January 15, 1944 and the 2V2S of August 15, 1945-43.
the
entire market.
any
(now 34) and call
*
the
Better
The
group at this date may well
be the signal -for the end of
Distillers, bought
beater.
remember
An
By BRUCE WILLIAMS
y
notorious for
are
runners.
bullish
to
But
steels
*
offered
in
the
new
drive
be decided upon soon.
are
to
CANADIAN
of Rhode Island, the Asso¬
crat)
ciated Press in reporting
Government
-
Municipal
"At
Corporation Securities
tive
of
the
H. E. SCOTT CO.
49 Wall
St., New York 5, N. Y.
WHitehall 3-4784
same
John
and
considering
the
D.
Michigan,
Ways
time,
Democrat,
Chairman
of
the
Subcommittee
the silver bill, said
Means
committee has
Silver
stated.
Representa¬
Dingell,
Celler bill which
Tele. NY 1-2675
its adop¬
the House on July 5
tion by
approved the
would repeal the
Purchase Act of
1934."
*
'T»
~rr^ - -
their currencies, and between
armistice
A Bank Oi International
published in the "Chronicle" of June 24, bearing
the above caption, Hep. Charles S. Dewey (Rep., 111.), a member of
the House Ways and Means .Committee, criticized the Keyes and
Morgenthau currency stabilization
International Cooperation: a World
plans and proposed a "Bank of
RFC," as a method of rehabilitat¬
ing the financial and economic strength of other countries after the
and maintaining equilibrium ^
~
7
of their international trade balopportunity
of
little
business
would be reduced, and production
ances.
The Keynes and Morgen¬
thau proposals,
in Mr. Dewey's would more and more fall into
We, at the present time,
hold the unpaid notes of Great
Britain in the Treasury for this
know: that you will be
paratively
amount.
lions
opinion,
ing more than
i^|
the
On
of
group
loan
of
lars
The
would
of
influence
corporations
opposing
the
be
great
proponents of a managerial econ¬
omy.
It is almost an accepted
fact that the great corporations
believe in a stabilized and well-
favorable
the
trade
second
themselves, which apparently are
country on
er
a
stronger
inevitably pulling
ordered advance in the
the stronger to
their
one,
the
of
of
level
the
production of
rqw
restricted the introduction of new
onicle"
r
Rep. Chas. S. Dewey
methods and ideas.
various
the
suggested; by
these
program
v
Dewey 7 and;.,
Mr.
were
given in previous issues.
Representative Dewey has favored
us with
copies of letters sent by
him
Frank
Messrs.
to
of
Ast
Brewster, Mass., and E. E. MacCrone, President of American In¬
dustries
Corp., Detroit, in connec¬
expressed by
them
regarding
his
proposal.
These comments appeared in our
issue of July 8 and we give below
the texts of Mr. Dewey's acknowl¬
tion with the views
Mr.
I have
ment of
interest¬
your
its posses¬
of large stocks of critical
ducing
permitted
cial
lending,
wish
I
to
'0'
compliment
you
on
the clear way in which you
have
explained the actual results
that
lever
maturity
most
of the invest¬
was
three
years
I
was
ducing
for
made
loans
purposes
not only gener¬
repaid
were
wealth-pro¬
but
duced foreign exchange
stabilize1 currency.
to
my
also
pro¬
sufficient
It is not
thought that the International
would in any way substi¬
Bank
there is
"relentless trend" under
a
the
in
of
formation
toward the
country
what
said
he
"we
loosely call a War Cabinet."In the Associated Press Wash¬
advices it was
further
indicating Mr. Vanden-
ington
of that
kind
instead
of
the
existing
kitchen cabinet in which there is
confidence,"
little
very
something
need
"We
de¬
he
clared, adding: "The palace guard
got to be demobilized soon."
"By 'palace guard' Senator Van¬
has
denberg said he meant.the circle
of advisers to Mr. Roosevelt, in¬
often to
highly influential in
policy decisions which
always concurred in by
heads
of
departments and
be
shaping
not
were
the
bureaus affected.
we
the
come
involuntary banker for
the loans
to
or
set
I
maturity
any
am
were
very
of
repayment.
The last paragraph of your
cellent letter states in part:
ex¬
"Rep¬
resentative Dewey proposes means
which we can get' something
non-competitive
for
what
we
by
active
happy that so many
good
discussion
citizens
interest in
of
sponsibilities.
them, but I
undoubtedly would
of the operation of
This
the result
be
International
r.n
proposal went
merely
the
Bank,
but
little further than
to us for
a
repayment
credits extended.
Neither
my
Mr.
-
Keynes
White, . but
Keynes, have
;
.
Mr.
nor
particularly
Mr.
asked contributing
nations to their stabilization fund
contribute
to
My
plan
any
requires
ticipants
not
which to
pay
of
them
that
having
any
gold
par¬
with
for their allotment
bank's
the
for
tangible assets.
in
shares
should
.critical
pay
materials.
the bank would have a
capital consisting of sound values
rather than promises to pay.
Hence,
I
have
definite
feeling that
the only possible way by which
a
inflation can be con¬
trolled will be through a policy
of as full employment as possible
and the production of consumer
post-war
be based
our
are taking
thought and
post-war
war
said
cabinet, Senator Vandenberg
he wished President Roose¬
velt would 'separate
hope that
that in the long run
Mr.
they will
plane
we do not
MacCrone:
International
term,'
throughout
which
hamper
would
the
United
the
certainly
States,
tend
to
development of free
initiative, with
a
result that the
.
7
Commission
report
a
,'.
in domestic decisions as the
"
Vandenberg
-
said
International
of the
'The unfortunate part of
that
it all
politics
the politics of the President and
his fellow-fourth-termers and on
the
hand
other
bi-partisan
the
politics of those who feel other¬
wise
on
the question.
as an
re¬
.
The SEC announcement in,
more.
advices
said:
•
>.
,
/ ;>"The combined assets of the 204
companies in 39 registered public
holding
31,
1942
compared
as
systems
company
aggregate $11,699,724,773
as
of Dec.
with .$11,-
543,068,659 for 210 companies
31, 1941.
as
Total operating
in 1942 amounted to
revenues
$2,-
compared with $2;4
as
068,477,822 for the 210 companies
in 1941.
J
consisted
"If the President were to sepa¬
of
bonds
debentures'
and
$4,076,225,563,
$205,500,294,
miscellaneous
preferred
notes
$275,237,552,
stock
$1,711,719,639,
stock
common
$2,245,460,061 and
surplus $781,731,000.
Bonds, de¬
bentures
49.02%
while
and
notes
of the total
preferred
for 18.41%
and
made
up
capitalization,
stock
accounted
common
and
sur¬
""''-'7
rate himself from the fourth term,
plus 32.57%.
greatly simplify the en¬
governmental perspective, in¬
cluding the President's own."
"Of the total earnings during
1942,
operating
expenses / took
40.02%, maintenance 5.03%, de¬
preciation 10.24%, taxes 21.18%;
funded debt interest 8.21%,. other
deductions 1.11 %, preferred divi¬
it would
tire
"Predicting that price controls
rationing would remain 'a
constant source of national irrita¬
and
tion until they are
simplified and
Senator 't Vandenberg
said Congress can be expected to
come back to Washington in Sep¬
tember demanding tome changes
justified,'
in the present system.
dend
requirements
4.54%,
"He forecast
of
a
renewed scrutiny
government bureaus, coupled
'a greater drive than ever
with
dividends
stock
mon
balance
for
com¬
est
funded
on
debt
times and
preferred
which
times, both of
exactly the
companies for
The average inter¬
figures
side
were
the year 1941.
Federation of Labor,
33rd Quadrennial Conven¬
Longshoremen's Association, at the Com¬
Hotel,
act of
to "The Com¬
as
and
requirements
1.70
earned
were
earned
was
fixed charges
dividend
same
both inside and out¬
expenditures.'"
/
surplus 3.14%,.
for economy,
war
6.53%/and
"The analysis shows that inter¬
2.87
declared against the Smith-Connally Anti-Strike
oppression and an insult to American labor and asked
the 6 million members of the Federation to work for the defeat of
modore
the
-
will play an in¬
creasing part in what goes on,' he
said.
'On the one hand will be
is
speaking at the opening on July 11 of the
tion
of
this
in
he
"Total capitalization outstand¬
thought
it
'unfortunate'
that
the
204
companies
partisan considerations could not ing- for
amounted to
be minimized during a war.
$9,295,874,109 and
Senator
Green, President of the American
William
included
204,509/749
time for the 1944 campaign nears,
utilities
All
port have assets of $5,000,000 or.
of Dec.
,
1942.
July 12
statistics
operating
year
companies
Exchange
on
financial
204
the
and
published
on
covering
for
utility
Repeal
Of Smith-Connally Anti-Strike Bill
Cooperation:
A
far
as we
ed financial advisor to the Polish
labor
never
Government, and resided in War¬
Poland, for three years.
I
mention this fact merely to show
that I have had an opportunity to
know
that
a
well-worked-out
fiscal
defeated
if
forgets.
they
the
are
Let them
going to be
laboring
it in his power to do it.
lion members of the A.
have been
has
Six mil¬
man
F.
of
L.
penalized and insulted
'
tional
/"/.
the
William Green Of AFL Seeks
possibly can, we are go¬
World RFC".
ing to mobilize our political power
I very
much appreciate your to
oppose every member of Con¬
very kind words of commenda¬
gress who voted for the Smithtion, and I am also pleased that Connally bill. That's already de¬
a person
of your broad business cided upon as a part of the politi¬
experience is taking so active an cal policy of the A. F. of L. We're
interest in our post-war rehabil¬ satisfied
that
a
large
number
itation problem.
;; f-7;- s;
of these men will not return to
After serving four years as As¬ the
Congress of the United States.
sistant Secretary of the Treasury
"You delegates to this conven¬
in the Coolidge administration, I
tion, be ready for the fight in
was
nominated by the Federal 1944. Go back
home and organize.
Reserve Board and duly appoint¬ Let the
Congressmen know that
observe
development of na¬
socialism or bureaucracy
on
Securities
for the 210
rate
all
on
funded debt
out¬
standing Dec. 31, 1942 was 3.96%
and the average dividend rate on
preferred
stock
was
5.84%.
;
Funded
net
debt
averaged 51.61%
property
of
capitalization
and
,
outstanding •: and
87.88%
of
was
and invest¬
The percent of deprecia¬
ments.
tion
surplus
property
to*
reserve
-property
was
14.98%.
"Dividend
ferred
stock
arrearages
on
existed
28
in
pre¬
com¬
panies
at Dec. 31, 1942 as com¬
pared with 32 in the 1941 report
and 37 in the~1940
report.
ings available for
common
Earn¬
'
theories.
is the
be
every member of
Congress who<^
voted for the measure; the New ure over his veto, wrote a page
Chronicle," York "Sun" of July 12, in report¬ of shame for the party in control
which was published in their July
ing this, gave the further asser¬ of the Government.
8 issue in regard to my article
He said that labor is putting
tions of Mr. Green as follows:
recently published in the same
every
ounce of its skill behind
"Mr. Green said:
periodical entitled, "A Bank of
"We are determined that, in so the war effort in order to keep
I note your letter
UtilitiesFinances
The
est
bill
saw,
One
will
we
road.
f
s
.
Stady Of 1942
mercial and Financial
The possibility of realiz¬
ing such a policy seems to me to
be
hampered by two opposing
goods.
fourth
We certainly have
become mendicants ourselves.
Dear
the
re¬
be kept-on a common-sense
so
war
put into operation.
.
give.":
.
our
an
for their
j
loans could
.
'
.
.
'"Along with establishment of a
question
operation.
As a matter of
would be expected to be¬
fact,
commercial
the
an Associated^
Press interviewer that he believes part
authority to control the usages of
into
White plans be put
commercial loans. These
tute for
policy and the citi¬
told
Vandenberg
.
a
Forecasting further reorganizations in the administrative branch
of the Federal government after Congress returns this fall.
Senator
the rest of the world without any
the Keynes or
should either
fiscal
continues
are given creative opportun¬
ity.
I believe that, nothing' is
greatly changed in the world and
that if we follow these principles
!
the home front.
on
himself from
declaring that
such action would go a long way
on the usual credit risks but the
risks would not be good even if toward smoothing out Mr. Roose¬
guaranteed by government unless velt's difficulties with Congress.
the fundamental wealth-produc¬
"Conceding that politics is like¬
ing abilities of the country in ly to play an increasingly greater
might be expected
SEC
cur¬
Mich.) on July 12 called for the
demobilization of the White House; "palace guard", and the establish¬
ment of a war cabinet to help President Roosevelt direct activities
during cluding Harry L. Hopkins, who the
financial Republican Senator said appeared
advisor to the Polish Government
feated.".
substitute
(Rep.,
observation
my
no
national
that
And'Demobiiization Of "Palace Guard"
commer¬
to
even
ment class.
ally
rehabilitation.
a
for a
purposes
not
of
war
as
against the restrictive practices of
international
cartels
controlling
vital raw materials.
Further, it
can
make loans for wealth-pro¬
that
July 8 commenting on my ar¬
be used
and
Vandenburg Urges Creation Of Real War Cabinet
berg's views:
can
by the, invad¬
government
correct
Vandenburg
the
sound
rather
a
zens
after
Come what
come what will, we'll go
with Government agencies
Axis
powers : are
de¬
along
its
sions
materials
the
sound
employed
stated in
ing letter addressed to "The Com¬
mercial and Financial Chronicle"
ticle in regard to a plan for post¬
wealth and the open¬
new
on
overrun
work
if
ing opportunities.
ing of new horizons,
It
just noted
International
of
Cooperation will follow the path
making loans for the develop¬
the
Cist:
Bank
of
edgements:
Dear
the
As
regarding
comments
this
com¬
that
taken
not
and
until
of 75 mil¬
have
position (of refusal).
may
rencies of any country are sound
plan was written
create national wealth-produc¬
Senator
of L;
dollars, Poland had got¬
herself
for
principle of it was
fundamental
of
on
that representatives of the
say
and I
interested
war,
loan
small
reading that there is
which required the Polish bud¬
up
that, based
to
A/ F.
7 I find from my experience and
get to be brought into balance and
certain tax reforms made, but the
way
received
^has
cartels,
materials, and through
cross-licensing of patents have
the
article,
"C h
international
with
restricted the
some
the
of
cation
through
agreements, and agree¬
own
have
publi¬
production
goods, and
consumer
ments
weaker.
Since
stabilization
A
the
to
ing German armies..
Government.
Polish
the
learn
basis until
of bankers subscribed a
only 75 millions of dol¬
to
to
trade
at¬
tempting the currency stabiliza¬
tion experiment an international
ination.
weak¬
some
might
after
hand,
that the loan should be
f avorable
n
u
corpora¬
themselves
which
cartels,
supporting the
foreign
great
to
outbreakof
ten
other
easily come under political dom¬
of
means
the
similar to the great foreign
tions
|p
of
hands
the
kj
rep-
noth-
the
purpose.
my
in"1931
residence
permanent
war
resent
since the termination* of
year
Treasury advanced three and
one-half billion dollars for this
article
an
rl have returned to Poland every
the
middle of 1920
the
and
Thursday, July 22,.k 1943
r,
the
Cooperation: A World RFC
In
a
CHRONICLE
THE COMMERCIAL 8c FINANCIAL
314
policy.
Immediately following the war
United
States Treasury, in
the
cooperation with the British Gov¬
by the action of Congress in pass¬
ing this reprehensible legislation."
Mr.
Green
convention
in
attempted to stabilize gress,
European economy by stabilizing Roosevelt
ernment,
4
asserted
delegates
deserting
and
before
that
the
Con¬
President
passing the
meas¬
our
soldiers fighting
and will continue to
do so.:
<
(
willingly/, relinquished
"Labor
the
in the field,
to. strike for the
right
dur¬
ation of the
war," Mr. Green con¬
"but. it will oppose with
at its command any
attempt to compel labor to give
up
its right to strike. The< one
is voluntary.
The other is force.
So far as labor is concerned, it
tinued,
all the power
will
of
in
never
yield in the acceptance
any'legislation1 that interferes
any way with exercise of the
right to strike."
Obviously referring to John L.
Lewis's
refusal
tp recognize the
dispute Mr.
WLB in the coal mine
must recog¬
nize Government agencies.
There
"In
is
no
war
days
we
justification for anyone tak¬
ing the position that he will refuse
or
refrain from recognizing gov¬
ernment
book value of
7.08%
agencies set up for the
disputes. I'm proud
settlement of
of
common
common
stock
stock and
and
sur¬
Fifty of the 204 companies
available for com¬
stock of 15% or more, while
plus.
had
earnings
mon
ten
companies failed to earn any¬
thing on their common stock. Of
the $214,387,670 available for com-f
stock dividends,
mon
$144,797,535
paid in such dividends, leav-t'
was
$69,590,135 for surplus.
Of
companies which were not
in arrears in preferred dividends,
141
paid dividends on common
stock in 1942.
/ -/
ing
the 176
i
"The
C. A.
sion
Green said:
stock
for 1942 amounted to 9.55% of the
copy
report
was
prepared
by
Turner, under the supervi¬
of Milton H. Cohen and a
may
be
obtained from the
publications unit of the Commis¬
sion in Philadelphia by request¬
ing
the'; 1942
report
showing
financial statistics for electric and
gas
lic
subsidiaries of registered pub¬
holding companies." •
utility
Volume: 158
(r Number :4196
THE COMMERCIAL .&'<FINANCIAL ;CH'RONICLE
-
Review Of The Economic Sitcalioa Of Mexico
standard
much
of
it
as
living
.
is
twice
as
two years ago.
was
In
month
only—from March to
April—it went up from 219.3 to
one
following review of the economic*situation of Mexico is
taken from the current bulletin of the Banco Naciohal De Mex¬
230.8 with an accelerated rhythm
ico, S. A.
and seemingly upwards.
'
To de¬
"As compared to other countries, Mexico enjoys the most excel¬
termine this index, the prices of
lent situation, according to the general opinion of observers.
How¬
necessities such as white bread,
ever, it cannot be denied that, as days go by and we enter into new
milk, sugar, pulque, meats, soup
phases of the present emergency/"^
beans,
coffee,
tortillas,
have had to turn down important pastes,
some of the apparent advantages
fade away and hints of difficulties orders because domestic produc¬ eggs, corn masa, lard, shoes, cot^
ton fabrics and others, were taken
tion is being sold four and even
of tomorrow begin to show.
The
•
•
"It has
been publicly admitted
stocks of war
the
that
domestic
and', other commodities
materials
essential to domestic life
be¬
are
United
States.
The correspondent of the
United Press, whose main office is
in Washington, D. C., has written
transferred
ing
to Mexican
mittee
as
to
the
editors that the
which
is
Roosevfelt
interview, would have
powers 'to prevent the impending
dislocation
internal
Mexico's
of
the
considerable American purchases
of strategic materials.'
This is
true.
According to official data,
brought
economy,
about
by
What
we
in regard to the merchandise
usually produced here, or to the
goods for which substitutes are
being manufactured now, can be
into account.
"It is true that wages have gone
say >
stated with all the
more reason
in
regard to the merchandise which
usually came from other places.
recently in such branches as
mining, cotton textiles and others.
However,
it
is
unquestionable
that prices have won the race. The
effort
of
the
humble
classes
much)
aggregated
and 88
84
and
February, and the results of
the trade balance amounted to-34
and 35 millions
"The
ances
Vdo
not
these
that
help
to
bal¬
increase
account of the
foodstuffs and other
stocks, either
imports
respectively.
is
worse
of
on
widely consumed articles, or due
to the enlargement of local pro¬
duction which is hampered by dif¬
ferent
Such is the
causes.
case
of
agriculture which, as we said long
before the emergency, is econom¬
ically disorganized due to lack of
machinery and fertilizers.
The
production has improved
slowly, but it is far from reach¬
ing the rhythm required by the
public needs. A little more corn
field
has
been
reaped
as
compared to
the
yearsthat followed the Revo¬
lution. According to "official statetnents,
wheat is required
and although the pro¬
more
every year,
duction of beans has increased,
has
not
developed
as
much
it
as
The
this have been:
Scarcity of* bread and its conse¬
quent insufficiency to fulfill the
Cole it has in every part of the
world; a high price of masa, which
is the raw ^material of torillas;
deem
experts
necessary.
Consequences of
.
and/ finally, the elimination of
beans from the diet of the poor.
this
But
picture shows some as¬
of agriculture production
and its relationship to public wel¬
fare which we can call "normal"
pects
has added the re¬
duction of stocks of certain food¬
The emergency
stuffs
due
(exceeded
tion in
a
the
The
such amounts as
exportations.
to
^surpluses' (?),
or
apparent consump¬
certain period, and which
should have been held here as a
as an
reserve, or
influence on the
have
high price of essentialities,
been sent abroad,
j
"The stocks of industrial arti¬
cles
are
come
equally uncertain.
They
from, abroad in minute doses.
general
consumption goods arrive at our
ports and reach prohibitive prices.
We could be able to produce here
What we " need, but there is rib
Imachinery available ..to enlarge
thops, and there is no place to
find it,'because the United States
grants permits only in exception^
few
commodities
of
f
reserves
of
merchandise,
and the instance
occurred—quite unusually in
trade annals—that large stores
there used to be,
has
our
as
ously attained,
most
im-'*' I
figures.
reproductive,
of the
necessary goods.
Secondly,
by causing the supply of goods to
increase and prices to go down
ing
without
amounts to
trative
20 years ago,
over
aggregated 500.0 millions in round
Upon adding the forego¬
items,
total
circulation
2,193 million pesos, as
against 2,131 a month ago, and 2,-
resorting
police
or
Endeavors
to
adminis¬
measures.
also
are
months, or 90 mil¬
month in round figures.
being made
securities,
with
a
moderate
interest,
but
based upon satisfactory guaran¬
tees, to the end of opening new,
"The assets of the Bank of Mex¬
steady and profitable channels for
021 two months ago, which shows
an increase rhythm of 171.2 mil¬
lions
in
two
lions per
ico's
reserve
have
considerably
rhythm:
at
also
accelerated
an
March,
in
increased
1942,
there
to
market
idle
long-term
capital.
Up to this time is¬
have
sues
comparatively
(the latest one cov¬
covered
short figures
40,000,000.00
is
tions,
or
instead but
in such
that
amounts
distribute
must
stores
sales
throughout the year so as prevent
closing until better times come.
"Some factories have discontin¬
conflict
of. rayon
mills
(in
become
obvious.
plaints
in
from
the
hear
and
more
more
We have received
correspondents
our
states.
that 'a
com¬
From
Celaya
considerable
.
we
rise
in
material.
However, such
facturers
as
manu¬
reached
have
the
highest cost level, as in the case
of textiles, fear a change of pres¬
ent
conditions,; no matter how
slight.
They are known to be
operating at full capacity, with
two
or
three eight-hour shifts.
They are producing as much as in
ordinary circumstances, and even
more for speculators, but a
good
portion is being exported. If this
portion, or that of speculators, is
redueed, the general conditions of
industry
will
be
jeopardized.
There is no sound enlargement, as
there would
be through a serious
million
30
were
this
do
have at hand the figures
April and May, but they must
not
for
price of essentialities has made it¬
be
has been
from
Reports
state
that
Aguacalientes
case
soar,
of essentiali¬
ties,
specially
cloth has increased 8%
with
re¬
gard to the price formerly paid,
and the new orders filed by the
United States for clothes, wafers,
bee's honey, candies and fruits in
general, have helped to increase
prices, because American demand
and
large
covers
amounts.'
well
paid
correspondent at
Our
Campeche writes that 'only indispensible articles are being sold
at
high prices, and the scarcity of
commodities is becoming
certain
apparent/
dollars; in July
increased to 33
has undergone the following
changes: January, 70 million dol¬
lars; February, 90 millions.
We
self felt in this market,'
foodstuffs, while
firms
which toidle
im¬
and that of rubber factories, have some
come
to an acute point.
Other ported articles such as hardware,
manufacturers keep on thanks to etc., are in trouble due to lack of
Our
correspondent in
high prices, but any reduction in stocks.'
their sales at the present prices Guadalajara
reports
that
'new
rises have
taken place
will bring about serious trouble
in the
for them.
essentialities, such as
Partly, industrial dif¬ prices of
ficulties result from lack of raw flour, potatoes, etc.
Raw broad¬
spite of their present condition),
similar.
In
months
two
there
increase of fifty mil¬
an
lions,
or twenty-five per month
which, at the present rate of ex¬
change, would be equal to 125
million pesos and account for the
apparently absurd development
of circulation.
•
ers
time passes
merchandise
the
increases
the rise of supplies and
the cost of living to in¬
tolerable extremes;
(b) the de¬
mand. of
Some
are
securities.
estate
available in
con¬
with the latter: the gen¬
of the price of Stock
nection
eral
real
data
and 260.8 in December, 1942.
ing securities have gone up
90.0 in January to
while
industrial
Min¬
from
101.9 in April,
securities—al¬
ready exceedingly swollen—went
up
from 336.3 to 438.1.
at
for future losses.
.'.//ir
"Finally, gold is being sold in
amounts (the old demone¬
.
small
tized
gold coins),
acquire
so
can
will,
a
help
it
values in the course
that the pub¬
merchandise
to preserve
of time. Cap-
feet
italists have understood this,
encouraged
for
look
and
which is in rise due to
gold,
demand.
Comparatively, it is worth more
than
the American
"Such is
index
Exchange papers at the end of
April, reached 362.5
(100-1929)
over
and above 331.0 in March
because
terest, because this will made up
(a) the
which
monopoly of merchandise which
pushes
and
prices neither real
estate nor sight securities are in¬
ducing.
At any rate, it is better
to save a portion of the present
capital in a serious, steady, noninflated business which pays in¬
present
lic
"The results have been:
day greater in the field
every
of
faced
such
by
dollar.
the essential problem
Mexican economy, and
proportions and the
its
are
remedies adopted to avert or
solve
it."
Gould Elected Director
Of Beekman
The in¬
Elisha
fluence of the demand of securi¬
Hospital
Chairman
Walker,
of
brought about by the new Beekman Hospital, announced on
money
for which no immediate July 19 that Leslie Gould, Finan¬
and profitable use is found, could
cial
Editor
of
the New
York.
ties
"In this
exasperating and diffi¬
still un¬
scrupulous people who are ready
cult condition, there are
not be more obvious.
"Journal-American," t has v been
and a bet¬ tO
jpecujajte with public needs, as
Some Solutions
elected a Director of
Beekman
organization. The enlargement has happened in the /slaughter
takes place through prices which house,
"Some partial remedies are be¬ Hospital. f Mr.
of. Mexico
where
City,
AyaJker said "We
result
from
the
reduction
of slaughtering
has
been
d i s - ing tried out.
First of, all, the are particularly fortunate to have
stocks.
In exchange, large units continued
together
with
the Federal Government is endeavor¬
secured for this post a man ax
have been compelled to operate at supply of. meat,
through
ai ing to deviate towards agriculture
well known and admired in fi¬
half pace due to reasons which we monopoly
which has brought; the money held by banking insti¬
have explained in this publication, trouble both to retail sellers and tutions.
This desire was clearly nancial circles as Leslie Gould."
although they had made prepara¬ consumers.
Dubious manoeuvers expressed by the Secretary of Fi¬ Mr. Gould accepted the Financial
technical improvement
ter
tions to meet domestic consump-j have been exposed with regard to
tion by * increasing their equip¬ the
supply of milk, the price of
ment and enlarging their prem¬ which has gone so high .that many
ises.
count
On the other hand, pn ac¬
of the scarcity of imports,
combined with that of machinery
and
our
and
the impossibility to buy it,
big opportunity: for a rational
is
industrialization
wise
es¬
caping'us without our. being able
to realize the ideal which, at the
of
outburst
the.
seemed
war,
people have dispensed with it.
According to recent statistics, the
present consumption of milk in
the Federal District is hardly one
quarter of a liter per inhabitant.
wholesale
"The
drawn up
has
by the Bank of Mexico
reached
went
as
index
price
far
172.7.
as
March
In
it
167.8; in February
nance
at
the latest
vention held in
banking con¬
Chihuahua, at the
cludes
the outstanding
ties.
Only
re-adjustment without a from 170.1
strong support which would allow April.
ject to
its
main
economic
branches
lose
through their connection with
soon as
the
staff
of
member
in
past several years he has been ac¬
tively interested in the affairs
of
Beekman
Hospital
and was
farmers.
chairman
"Naturally, this attitude on the
Government's part will help to
Committee for the
a
a
newspapers
of
Publications
the
1943
Mainten¬
raise
$125,000 to
meet an estimated budget deficit
for the current year's expense,
v:
ance
Fund
to
treat...
went
up
I'll
save
for
special
it
The. Other Angle of the Problem
is over, or as
"The
present needs will change.
caused
war
of
maintain
to
activity with the usual
force when the
York
1930,
commodi¬
foodstuffs
to 180.6 from March to
a
of
the
New
American"
in
California, New York, New Jersey
and the Associated Press. For the
What
in
-
prior to that he was
extractive
accordance with war
necessities and it is surely sub¬
larged
"Journal
reforming the codes of the agra¬
rian policy, but through measures
which may bring back to private
institutions the money they may
it was 166.2; in January it reached solve the present problem of Mex¬
industry, 156.7. Between January and April ican economy in two important
which should be protected on ac¬
there; is a difference of 11%,
count of its direct connection with which is a faster rhythm than in
the war, is having trouble.
Min¬ 1942. According to this index, rice,
ing complains of the deficiency of coffee, beans, corn, wheat, green
railroad transportations as well as
chili, beef, lard, yellow potatoes,
of the lack of specialized equip¬
sole, soap, alcohol, barley, and
ment.
This industry is being en¬
cotton, have gone up.
This in¬
the
"Even
Editorship
beginning of May. This co-opera¬
tion is being sought for without
practical and feasible.
other
the
factor
that
continuous
rise
has
in
According tb the information we
prices is the unrestrained increase
have, the oil industry, cannot ob¬
tain machinery'., The old machin¬
ery used since the expropriation,
is
the
only that, with slight
modifications, is still being em¬
of monetary
jal cases and after the priority re¬
quirements to which factories are
jEubject during the war have been
fully satisfied. We are dependent ployed for operation.
no
of
part
and
it
longer received or
only with great limita¬
else, substitutes are sent
are no
received
.
on
the old-fashioned technique
Which has generally presided oureconomy.
Productivity is quite
low and is not equal to the new
[requirements of the population
jor to the war necessities.
Our
warehouses are empty. There are
a
will
foodstuffs, repair
mainly in the
millions respectively for January
using
productive
articles,
Certain kinds of
The
up
essentially
mediately
parts for machinery, and similar
Mexico
February, 1943,
have
exceeded
the
already too
high averages of 1942.
The total
of the commodi¬
shipped (prices have not gone
by
the assets for such purposes as are
finances,
because the highest figure previ¬
pesos); but at
it will be possible to
make more important issues. This
will be easy because competition
in
'prices in general continue to
amount in pesos
is
First,
ways.
figure had
millions; in December it had only
gone up to 39, but after that time
visible
ued work in the last few. months.
ties
in the annals of Mexican
up;
exports to the United States dur¬
ing January and
banking deposits have gone up to
973.9 millions, a climatic figure
City, but that
of the poorer classes in the rest of
the country to meet their needs,
com¬
being appointed
result of the Avila Camacho-
a
five months in advance.
31S
.
.
know
April the total of banknotes
in the hands of the public aggre¬
that in
gated 847.2 million pesos,
or
ary.
The
amounts
to
one
of the
figures in
factors of the rise apparent
in the
ties.
rhythm
30
of
millions
excess
increase
in
living, which
SCHENLEY
round
of trade necessi¬
Moreover, in view of the
monetary depreciation, a strong
siderably
accentuated
during demand of gold and silver has
April and the first half of May. been promoted. Coined silver has
While it exceeded
150
in
1941
gone up from 358.2 in February,
(1934-100), at present it comes to 372.0 in April, or a monthly
close to 240.
In other words, the
average of 7.0 millions. -Finally,
standard of
occasions!
30.6
millions than in March, and
57.6 millions more than in Febru¬
The Rise. In TRe
are
Accord¬
we
more
Standard of Living
"Reduced stocks
circulation.
ing to recent statistics,
ROYAL RESERVE
was con¬
,
60% grain neutral spirits.
Blended whiskey, 86 proof. Schenley Distillers Corporation, N.V.C.
^
THE COMMERCIAL & FINANCIAL CHRONICLE
316
''
:.v" "
",v
our
little wage increase and in
to keep down our | very
expenses,
Then we can come into
post-war period with a rea¬
sonable chance of escaping finan¬
.
cases
increase since the
no
prices.
some
the
war
cial disaster.
government employees since the
war began have had the larger in¬
creases.
In many of the non-war
J. W. WATSON
Treasurer, Shell Oil Company
Wright's article
with close attention and a great
I have read Dr.
Would that eco¬
deal of interest.
nomics
were
science,
exact
an
ad¬
in
provable
demonstrably
and not so interwoven with
and above all, the po¬
aspects of our lives!
Be
that as it may, Dr. Wright has set
down a few truths in a manner
vance,
began.
The laboring groups
benefitting from the war and new
industries, the decline in business
increases
has been such that wage
without great dif¬
ficulty, and in some instances
would
force the businesses
to
not possible
are
close
of the unfortunate maladjust¬
one
the social,
litical
which
ments
College.
•
i
up
;
the
in
last
problems to deal with
paragraph
of Dr.
ily
with
agree
Of
reached.
ways
a
very
the
there
course,
institutions and the
tween
is al¬
be¬
vast difference
course
more
war
has accomplished
it
this,
nothing
does
article
a
great deal, as out of it may come
widespread decision to apply
a
positively the virtues (old-
more
of
be)
they
though
fashioned
This, funda¬
mentally, is the thesis of the ar¬
after all,
of cor¬
ticle, and these virtues,
basic in the affairs
as
are
ourselves
porations as they are to
individuals.
as
WHITNEY
F.
A.
Brotherhood of Rail¬
Trainmen, Cleveland, Ohio
President,
road
of
of
causes
HON. FRED L.
CRAWFORD
over¬
selling I think this will solve the
hear
a
cases.
lot
about
post-war
While it is well to give
this matter some thought, the war
planning.
recitation
the
'
cited
o
fact,
by
ideas
|jjj
deeply concerned over the issues
A. F.
Whitney
should take, into consideration
prices do not simply rise—*
somebody puts prices
up.
If we
finger on the selfish
profiteers who inspire these price
rises, we might cure inflation at
could put the
occasion
have
dwelt
are
causes
financial bible for 50 years.
on
ject which starts
page
on
today's "Chronicle."
comment
Mr.
prepared
on
of in¬
by
upon
Wright in his article
from
Dr.
the sub¬
one
of
EDGAR A.
the
above
Whitney, Dr.
the following
versed.
mation
our
national
to
seems
memo-
situation, the
have been
According
the
to
increase
the aggregate
National
Vice President, Louisiana
my
re¬
infor¬
in
in wages
have outrun prices.
Dr. Ivan
was
11.9% higher than
May 1942; the average weekly
.wage
was
average*
higher^
state
he
the
on
"Measure¬
State
in
figures.
income
the
in
'assisted
be
presentation study by Dr. Julius
Wyler, who
was
formerly with the
of
Office
Statistical
Central
an
reported
pleased to accept the
as
appointment because it confirmed
the effectiveness of the Beech Air¬
who are entrusted
subcontracting, and because
interested in helping tide
small business enterprises over a
craft personnel
with
he
is
difficult
Their problem
beyond the
period.
that
one
was
went
period, he said.
war
Gibson Back At Red
has
Word
Gibson,
D.
City, who has been in Eng¬
last August, acting as
since
Red
American
sioner
Cross
Commis¬
Great
to
Britain, has re¬
turned to London after spending
in
five' weeks
about
States.
the
United
During his stay here, Mr.
Gibson conferred
with Red
Cross
Officials in
Washington, D. C. and
New York in regard to the expan¬
sion of American Red
Cross acti¬
vities abroad.
country.
Graduate
Dr. Wyler is now on the
Faculty
of
New
the
School for Social Research.
HOLLANDER & SON, INC.
m A.
that
received
been
President of
the Manufacturers Trust Co., New
Harvey
the estimates of the national inand national wealth for that
'
Cross Post In Britain i;y
Switzerland and is the author of
come
accord¬
Corporation,
announcement by Brig.
Gen. Robert W. Johnson, Chair¬
man
of the SWPCj Mr. Gaty is
ing to
land
com¬
Capacity," in
the validity of
capita
per
Plants
War
York
recently
tested
wilL
He
9
SUBSIDIARIES
AND WHOLLY-OWNED
for
Consolidated Statement of Earnings
the Six Months Ended June
Net income before other
•
30, 1943
16.8% higher, and the
cost of living was 5.9%;
Unfortunately,
ever, many wage groups
how¬
have had
than
wage
and
the
entitled
"Managing
Business
a
thought-provoking.;;
touched
all
from
,;
so
Certainly, 'it
upon
this
;
subject
possible angles.
available
much
to
so,
$1,223,842.16
income...
.
.
$143,170.22
...
Depreciation of fixed assets and
;
amortization of leasehold im-
1/
provements.
.
.
.
.
.
.
v—";; ' V..y'''\!v'
•
62,415.36 205,585.58
Net income before Federal taxes, on income
1,018,256.58
Deduct:
Provision for estimated Federal taxes
income
two
in
studies
rates/after applying entire year's excess
profits credit (equivalent to $3.31 per
shareon
Organizing
and
Net income for the six months ended
1943
v
.
;/
me as
I
<
arrange
for 12
or
a
treasury stock)
-
„
$323,256.58
......
Inventories at June
leaf¬
ar¬
very
,15
of
V
Comparisons To Be
York
a
larg¬
has
re¬
Foundation
to
com¬
study of international in¬
come comparisons under Dr. Paul
Studenski, Professor of Economics,
it
a
was
Harold
ference
:
/
grant of $7,500 from the
Rockefeller
plete
University
of sales, percentage for the
preceding calendar year.. as the ^company takes
physical inventories only at. the end of the year,
Studied At N. Y. U.
ceived
30,1943:,
basis of the prime cost
announced
July
15
by
Above is
a
copy
of the semi-annual report submitted to
V' the New York Stock Exchange pursuant to its rules and TVV.i.
regulations.
O.
Voorhis, Secretary of
est interested depositors.
, v
',j, the University. ; r - V V-.';. • •. -> The study,:, begun in 1937 as a
We "have enjoyed; as well the
WPA project under the- co-spon¬
other articles in* both sections of
sorship of the University and Con¬
"The Chronicle."
*
16,875 shares of
«•••••.•
•
';' /
^
our
June 30,
equivalent to $1.54 per share on
tion from issued shares of
Internationa! Income
New
you
this
should like
them for distribution to
,
being'
some
covering
695,000.00
.
Employee
Maintaining
..
.
209,700 shares outstanding (after deduc-
the
Program" and "Stimulat¬
and
209,700 shares outstanding)
are
entitled
are
on
computed at presently prevailing
the
good that I feel confident
If
stickers
that he has covered
This article strikes
ticle.
deductions.
Other
Inflation',*' is most
Vicissitudes of
and
card
Series"
Morale."
Through
/Stockholders
time
"Planning
ing
would appear
on
Deduct:
earn¬
the visual reminders that
part in the drive against
other
Morale
For
deductions; depre¬
ciation and Federal taxes
absenteeism..
The
Wright's article in the
lets
industries in
a
Tuly 8 issue of "The Chronicle,"
According to the Bureau of Labor
in the manufacturing
and
"Morale
Statistics the average hourly wage
in
goods,
have been very
Bank, Baton Rouge, Louisiana
will in due course have
March 1943
which
is well realized by every
employer who has had to cope
with it.
A number of companies
among
letter
Wright
>yy/yy
It is generally true ih economic
history that price increases have
preceded
or
outrun
wage
in¬
creases.
Up to the present how¬
in
reconstruc¬
Variations
quotas
play
When asked
randum:
ever
wages
consumer
ing.
That this attitude on the
part of employees is devastating
to production time schedules and
cards
SOWAR
1
process
of
Board
City Region of the Smaller
Kansas
methods of treating
source.
Editor's Note—The
flation
a
of Governors of the
to the Board
12
successful in their
this malignant
growth on industry, according to
the
report,
by
analyzing
the
HALSTEAD RHODES
causes, isolating them, and apply¬
Bioren & Co.
ing an internal remedy that may
be called "Employee Education."
Dr. Wright is an exception to
Such
education
is accomplished
Mr.
Maxson's strictures. •
Clear
through the media of employee
thinker.
Dr. Wright is located in magazines,
posters,
billboards,
and
special
attendance
charts
my old home town, Brooklyn.
placed at strategic points hi. the
The "Chronicle" has been my
plant or office.
Special timethis statement of
Wright's.
Dr.
'that
•
shall
to refer them to
-
Therefore, to
*
argue that wage increases cause
inflation is to argue the absurdity
that effect precedes cause. I think
to
I
discusses.
outrun
Wright
problems which Dr.
and
al¬
precede
the
of
attractive
more
F. L. Crawford
District, I find business men are
we
and
world.
study for the Social Se¬
pleted
curity
result of which is to make leisure
creases.
,
in
the
for post¬
play
Studenski
Dr.
Aircraft
reduction of absenteeism.
on
combination -of. high
increases, that
price
in¬
n
of the
companies that
scarcity
fighting wage
i
tion
"Among the chief contributing
of absenteeism, the report
states,
may
be mentioned the
except
and
will
settlements
war
causes
when they are
wage
important part which national in¬
formulation of programs
i
econo¬
creases
have urged the com¬
pletion of the work because of the
data
President
of Beech
Corp. has been appointed
Gaty, ; Vice
Manager
that many Fed¬
stated
eral agencies
come
P.
General
state:
so
ways
also
of well
Advices from the Bureau July
re-
mists
Study fin Reducing
Employee Absenteeism
scores
John
and
present
readjustments.
have co¬
operated with the Metropolitan by
submitting their most practical
f
many
WPA, should be of value, it is
pointed out by Dr. Studenski to
public and private agencies and to
Economic and Fiscal
known
his
note
planning at the present time.
the methods used in
pleased
was
be
Economic Research,
ment
would not be wise to do any exact
one of a series of three on
subject of employee morale,
is the result of an investigation of
start.
the
expected that the
completed within
and that it will be pub¬
year
He
the
information on the
pre-
is
will
national economic problems asso¬
ciated with the war and post-war
overbuying and not
report,
inflation
vent
It
study
individuals concerned with inter¬
not
The
campaign
being
waged
Representative in Congress From
against preventable employee ab¬
Michigan
senteeism by executives of war
With a great deal of interest I
production companies is examined
read the timely and constructive and
reported in a new study en¬
article by Dr. Ivan Wright. Every titled:
"Reducing
Absenteeism
day, in making contacts in my Through-; Employee
Education"
just released by the Policyholders
Service Bureau of the Metropoli¬
tan Life Insurance Company. This
in¬
how- to
to
out gross ine¬
quality.
resulting figures
the
announcement
themselves,
stated.
esti¬
income
the
of action necessary to be followed
as
and
flation
I
to iron
necessary
decreases
and
It would have
greater value had he
given us more
'at
did, and then allow only
increases
factual.
largely
been
England and
Wright's article is
Dr.
think
I
Canada
such
think-
thrift, hard work, straight
*:ing and fair dealing.
began in 1939 as
national
by each, but if care is exercised
during such periods of maladjust¬ is not over, and nobody at the
in many
ments.
There are plenty of in¬ present time can tell just how
instances, some painful thinking
soon
it will be over.
For that
It
is
unfortunate,
cn
the question: "Where do we equalities.
reason, while it is just as well to
go from here?" among the Na¬ however, that we did not freeze be thinking about what should be
tion's corporate managements.
If both wages and prices when the done sometime in the future, it
than
of
and
;
Completion of the study, inter¬
conclusions rupted
by
the termination
of
vigorous, and very likely
his
mates
summed lished
by the National Bureau of
I am sure, stimulate
will,
30 countries in the prep¬
over
aration
Wright's discussion and I heart¬
We
Wages and prices are two very
in
a
whole thought is
The
Gaty On War Plant Board
sible detail both the methods used
'
y
■
com¬
parative form and the fullest pos¬
by Dr. Ivan Wright, Pro¬
of a Economics,
Brooklyn
problem in most
growing out of the war.
troublesome
article
fessor
But this is only ! in
altogether.
:;,vMichigan V
Thursday, July 22/1943
*> ;. w,"
;and Wealth, will present in
Savings Bank, Bay City,
0;
'•
/ I
have read very carefully
and with considerable interest the
'
(Continued from first page)
■
T-. t
Peoples Commercial
President,
and
\ f
DAVIDSON
JAMES E.
Managing A Business For Stockholders
Through The Vicissitudes Of Inflation
"•
»
on
Research
in
Income«■
v/"..'
.v
Michael Hollander y
*
V
' 1/: /
•'V,-
/
:
/
•
•
"
; -v
V
'V
President, A. Hollander & Son, Inc.
■>.*y;v-
/
*
[ :,V fcbrf*">.,JT
r'Uil":^'
Y1 J!
Volume
158
,
pyo.frhi> ja iyt& w $ £ • • tar:> -i m*i m >o :'-r< it
THE COMMERCIAL & FINANCIAL CHRONICLE
.
Number 4196
-
•
->»
31/
''Back The Attack—With War Bonds" S
% Study By Governors pud Mayors Of Wagner Bill
Slogan For Third War Loan Drive For Redevelopment Of! Blighted Areas Sought
The $50,000,000,000 plan for private
enterprise rebuilding of
Secretary of the Treasury Morgenthau announced on July 10 that
the slogan for the Third War Loan Drive, scheduled to start Sept. 9, American cities, incorporated in the recent Neighborhood Develop¬
will be "Back the Attack—With War Bonds.", The Secretary ex¬ ment Bill introduced by Senator Robert F. Wagner, is being laid be¬
plained in a statement that the Sicilian invasion and developments on fore Governors and Mayors throughout the United States for study
He pointed out that
and local
the big offensive means that the "time has come for us to really
tighten our belts here on the horned
front," adding that "its going to a most cruciaLperiod in the war,
Institute.
fronts have
other battle
be
costly victory."
a
state¬
'-'The
of
invasion
and
Sicily
from
battle fronts during the past 24
hours have provided a slogan for
our
Third War Loan Drive.
It
ether
developments
news
attack —with
'Back the
is:
war
Bonds.'
"As
read
<
knows
anyone •
newspaper
a
bulletins
news
on
or
who has
listened to
the radio
this
morning, the United Nations are
the march.
The first rum¬
on
blings of the big offensive are be¬
ing heard in all the Axis nations.
Thousands of our men are storm¬
Tons upon tons of
bombs are dropping on Germany.
We are attacking Jap-held terri¬
Sicily.
ing
before. > This is a
great day for us.
But it means
tory
as
never
has come for us to
the time
that
really tighten
belts here on
We have come to
our
the home front.
that
sent to
was
In the
case
must call upon you,
the American
people, for that money.
"Remember, it is up to all of
here at home to Back the At¬
us
iastically,
with
do
to
tack—and
more
enthus¬
thoroughly
sacrifice than
and
more
greater
attack
it
has
ever
any
backed
been
by
any
home front in all history.
Everything is at stake.
Every¬
one must help to the very limit of
his
ability."
industrial reorganization will be undertaken
Senate sub-committee headed by Senator Joseph C.
(Democrat) of Wyoming, according to United Press ac¬
July 15, which stated that:
sub-committee will begin work on the West Coast shortly
counts from Washington
and will make recommendations for
maintaining 'the fullest possible^————
——
~
—
degree of employment' in the post- Senator Walter F. George
(D.,
Ga.) has given Mr. O'Mahoney's
war shift to peacetime economy."
before
Congress
reconvenes
•£ Other members
mittee
are
of the sub-com¬
Senate Minority Leader
Charles L. McNary (R.,
the
Said
added:
Ore.) and
W. Lucas (D., 111.).
Senator Scott
same
advices,- which
i
"The Senate committee on
war
policy
and
planning,
post¬
under
Governors and
some
400 cities.
of the cities to whom
of
reuse
where
have
blight
in
areas
deterioration
Under
long-term
to
land
and
occurred.
posal,
are
urban
the
Federal
pro¬
loans
be made available to local
authorities
through
the
National
Housing Agency for the purchase
of blighted areas. The land would
then
sale
cleared
be
or
offered
and
for
lease for redevelopment as
attractive
neighborhods
sound
with
cordance
in
ac¬
planning
presenting the plan to state
municipal officials, the In¬
and
declared
stitute
that
not
only
would if offer the benefits of
position of most cities by restor¬
ing property values in deterio¬
rated areas.
Likewise, the large
construction
envisioned
extenstive post¬
war
employment and economic
activity.
The Institute further
would
plete information on post-war eco¬
nomic policy.
trial
this
the
week
Brook¬
ings Institution accepted Senator
George's invitation toassist his
committee in compiling data for
post-war programs."
of
schools
program
provide
the
areas
"close
as
in"
plan,
well
good indus¬
attractive
as
residential
neighbor¬
hoods would be built in American
cities■
p^L the site of!
blighted
vate
like."
Wagner
billion
dollar
loans.
Stewart,
bill
fund for
According to
Director of
a
long-term
Charles T.
the Urban
areas.
Essentially
a
pri¬
>y
Growing Public
Confidence In Int. Rates
The 1942-43 addition of "Securi¬
ties of the United States Govern¬
ment
and
Its
Instrumentalities,"
prepared by The First. Boston Cor¬
poration,
100
Broadway,
New
City, is now available to in¬
stitutions, dealers and others.
York
Recognizing the increased pub¬
lic importance of Government ob¬
ligations and their place in the in¬
programs
increased
number
of
greatly
a
of
individuals
and
institutions, the current pub¬
lication appears in enlarged form.
treatment is given to
Extensive
Institute, such a rebuilding tax factors, yield and price rela¬
would generate $5 of tionships between taxable and ex¬
private ; construction
for : every empt issues, Federal Reserve Bank
program
dollar
of
Federal
credit.
Thus,
it is contended 10 billions in Fed¬
eral
loans would
than
out
would
to
that
the way to a large-
open
open market operations and the
part played by commercial banks
scale program
of replanning and
rebuilding deteriorated city areas,
the Institute asserts that state and
local
'government
would
be
brought to the forefront in the en¬
tire
procedure.
Redevelopment
would be carried out under muni¬
other
and
of private/ of
for
construction.
the Mayors and
the Wagner bill
expenditure
Governors
better
in
result
billion dollars
50
Pointing
the
institutions
Treasury's
7
program.
7
of
large scale Treasury financing
interest rates has given way
to
growing public confidence that
stability
most
will
and private effort.
nature
Be¬
and
and
local
preponderant
of the
gestions
city
the
operation, the sug¬
advice
of both
officials is
state
the
being
requested by the Institute, which
sponsored the
plan. 77;';*
The Institute, a
zation
devoted
better
private organi¬
the
to
promotion
city- development
and
planning, has carried on extensive
work
in
surveying the needs of
American .cities.
The
to
in
Wagner
our
issue
,/%
bill
;
'£7
was
of June 24,
page
"
*
2388.
.al¬
"The fear on the part
bankers that they would
of many
'loaded
down'
with
too
much
indebtedness
seems
to have given way
to a situation,
largely due to the low rate of re¬
turn available, where they cannot
acquire a sufficient amount of the
type of Government securities de¬
sired fox
A
income purposes."
discussion
the
makes
point
by
Treasury financing operations a
free market depends largely upon
maintaining the delicate balance
in
market
a
between
dominated
undervalued
an
overvalued level; of
terms of
and
quotations in
financing rates. The
con¬
clusion is reached that under pres¬
conditions
ent
.
referred
maintained
The publication
that
states
that
•
be
indefinitely.
Government
of
/
upon
cooperation between
agencies
support
financing
earlier uncertainty as to the effect
be
government
in
war
Pointing out that each period
brings its own new set of prob¬
lems, the book emphasizes that
ing regulations and would enable
present
enterprise measure, the plan
Reflects
vestment
prosposes
Land
of
"Under
parks, buildings,
as
the
and
The
public develop¬
municipal
necessary
features, such
cause
says:
"Earlier
ment
su¬
perior urban environment, but it
would in general improve the tax
full authority to investigate
and to supply Congress with com¬
group
also provides for
cipal planning, zoning and build¬
principles.
O'Mahoney
"The
the plan^
a
the proposal is being referred, the
degree to which we here at home Uurban Land Institute is asking
are willing, to work and sacrifice
the Mayors to have appropriate
and sweat for ultimate victory.
planning officials study the ap¬
"It's going to be a costly vic¬
plication of the program to their
tory.
We have said that before, communities arid to offer com¬
but we must repeat it again and ments.
.1
i.
•
again. The real war has only now
It is pointed out by the. Insti¬
begun.
Billions of dollars more tute that the
Neighborhood De¬
must be spent to keep the mate¬
velopment Plan as incorporated in
riel of war going to our men at
the Wagner measure1 seeks the
the
fronts.
Your
Government
special
a
was
areas,
all 48
fighting fronts will depend
considerable extent upon the
StudyOf Post-War Industrial Reorganization
By Group Headed By Senator O'Mahoney
by
'
blighted
Mayors of
we
In
Study of post-war
of
to the
success
the
to
ment follows:
■
cn
ment
disclosed on July 17 by the Urban Land
Seeking local reactions to the proposal for the redevelop¬
application, it
will have
and the
/•
Morganthau's
-Secretary
•
provided the slogan.
Book On Govt. Securities
the
price level of
Government securities is of great
importance,
purchases
and
and
sales in the market should be han¬
dled with unusual
vy/77;f/7
care.
7;:, A section initiated in the pres¬
ent edition analyzes the Revenue
Act of 1942 with regard to
This advertisement appears as a matter of
The
record only-and1 is under no circumstances to
he construed
as an
■''
:
'
■:7:77"' '7''77
-
"■
.7
'
;i7;'777
665,715 Shares
Twentieth
Century-Fox Film Corporation
7 ■':: 7
:7''77®■ '■'57--*7-7 •.'<-?0 7' 7'77777;..7.-;77y7'vv7 ■''
'•:
income, including
the
effective
a
of
rates
taxation
institutions subject td Vari¬
upon
Classes of corporate levies, for
ous
or as a
'
sUrvey
of
solicitation of art' offer to buy any of such securities.
offering is made only hy the Prospectus.
offering-of these securities for sale,
invest¬
ment
the specific information of banks,
corporations and other- institu¬
tions.
Discussing the importance
of tax factors, it is pointed out
that "It is impossible to over-em¬
phasize the importance to the investor of fully considering his tax
picture in formulating his invest¬
ment policy, and of constantly re¬
viewing this policy as it is affected
by actual or potential changes in
tax liability."
•
7;7 /• *
7 Much larger space than iri any
earlier edition is given to
Preferred Stock
of
sion
banks,
(without
par
value)
tual
savings banks
with
banks
open
and
is
per
corpora¬
special
stress
market operations
provided
with
upon
incident
Information
to war-time finance.
$33.50
of
insurance companies, mu¬
tions, and to the Federal Reserve
$1.50 Dividend Cumulative, Convertible
Price
discus¬
problems
portfolio
regard
the
to
Federal budget and tables are
Share
cluded
standing
and its
in¬
giving details of the out¬
indebtedness
Treasury
ownership.
interest
values
A
new
based
table of
upon
365-
day tables is provided for the con¬
Copies of the Prospectus may he obtained in any State from such of the several Underwriters,
undersigned,
as may
including the
lawfully offer the securities in such State.
venience of buyers
of Government
securities.
In various sections of the book¬
let there is extended discussion of
the several financing problems
in
ivolved
Lehman Brothers
Blyth & Co., Inc.*
war,
and
Treasury
-
the
the
and
financing
of
repercussion
Federal
inrthe
of
Reserve
policies upon the various classes
July
19,1943
of institutions which now hold so
great a portfolio interest in Gov¬
ernment
obligations.
t
xsassMSwswiiflg •
*
v "V
?.*?*•/¥ V* **y
' r
if r\v/ ^
*" « 'f <r\«*r- irp -9 «*# ,7 ♦% •■*•
^
■'
" f't \ .-**
THE COMMERCIAL & FINANCIAL CHRONICLE
318
Thursday, July 22, 1943
•
setup when Victory Fund Committees were • disbanded
corps will run into the hundreds of thousands.
u
"•l*
Out Reporter On Governments''
■
"Even
By S. F. PORTER
There's
4
gossip of
no
any
be
the
real value out on the Treasury's next
in the Government bond market. .
.
The timing
The question of whether the maturing issues
will be paid off in cash and the money raised during or before the
September drive.
The problem of bunching the issues or taking
them up one by one.
The possibility of some minor new money
financing when the %% certificates come up for payment August
1.
All these subjects are coming up now and while there's no
indication of what Secretary Morgenthau has in mind, we have
some signs of the direction of thought. . . .
compulsory
.
.
.
.
.
.
.
.
"It's going to
be
this part of the market,
the maturing obligations amount to well over $3,289,000,000. . . .
There are the $1,609,000,000 %% certificates of indebtedness,
due for payment August 1. . . . There are the $279,000,000 1%
notes due September 15.
.
And there are the $1,401,000,000
3y4% bonds due October 15. . . . $3,289,000,000 in all—and all
coming up this Summer, unless Morgenthau decides to hold off
until the last minute on the 3|4s, raise the cash for payment
during the September drive and use up a good portion of it
,
v
immediately thereafter to redeem
,
far
.
.
.
•'
-
is the disposition of
the %s,
/>
3V4S
Morgenthau will give holders of these long-
that
be
privilege this tifne.
quoted on the 314s.
.
.
.
.
.
.
of these will
the boards. . . .
Regardless of the date chosen for payment and regardless of the
for raising the necessary cash, the first point is what
holders of these are going to do when they get a taxable bond,
either in exchange or on the market. ...
<This observer suggests that gambling on the timing of this deal
.
privilege is too risky to be worth the effort. . . .
On the contrary, it may be wiser to do your own refunding now.
Sell the 3V4S to any buyer at the present premium—it's high
the "right"
tax-exempt bond and assum¬
3!4s to the bitter end, move
/
issue available on the boards
4;now.
Pick a long-term one so you'll not have to go through this
), process of "rolling over your issues" every few months. . . .
The tax-exempts have been under a little pressure in the
last 10 days due to an unconfirmed rumor that the Treasury is
about to sponsor a mtove to hit into the tax-exempt advantages
and is about to work for a change in the law that will make the
tax-exempts less attractive.. . . Well, maybe. . . . But even if this
does happen, Morgenthau and his assistants will have a battle on
their hands.
And a battle they'll probably lose. ...
So you might take advantage of this recession in the prices of
longer-term tax-exempts to do your own refunding on the 3V4s. . . .
.
.
.
And assuming you want a
ing that's the reason you've held these
out of the 314s and into a tax-exempt
...
'*
*
'
.
.
.
,
,
.
.
he
.
a
.
and the Is, it seems
>
...
be that Morgenthau will take care of the 7/ss in
and will offer a fairly large-size issue in August to raise
.
.
accom¬
will
produce
to
be
can
be
ex¬
taxable
the
the ob¬
.
.
pretty vague at the moment but at least
arrived to concentrate on the refundings coming up
all
,,
with
processes.
pected to provide jobs in order to
stability
fair
In
was
us are
totalitarianism at home and
the
abroad.
I need not
relationship of one
the other.
Nor need I discuss
imperialism
describe
the
totalitarianism.
I
merely want to add that one of
danger of
the
sinister
most
which will
that
we
will
the
have after
shall
be
developments
of the great debt
come
war
the
suggestion, already
made in a few places, that the way
we can carry the burden of a 300billion-dollar debt is to enter in a
big
way
into the exploitation of
backward
countries.
the moment to
the question of the sort of political
government under which we may
Returning
live
and
for
in
individuals
the
our
present government whose views
are animicai to free^ i^^prise, I
should like to suggest that
it is not
at all clear that the views of these
gentlemen are identical. As I have
the evolution of
seen
in
ly
our
idea
men
disdbrned
specific types—philosophical¬
Washington,
two
as
far apart
as
I have
the poles, but po¬
The
is
a
power.
consists of those
individuals,
mostly
economists,
who, for reasons which they have
given in great detail, doubt that
private enterprise, under any cir¬
cumstances, has a- future.
The
second group is largely composed
not of economists, but of lawyers
who
cash for
so
much
that
an
unlimited
amount
punishment and still survive.
The former
group,
with proper
journals,'
ruins of party
I
wish
to
warning in
constantly
political
is
is
had
and
the
parties, to argue myself
the importance
of the
mediocre.
But if you re¬
flect upon the ways of men, you
can
readily
that
see
a
out fatal
the
of
In
.
damage.
the
have little between the
mass emo¬
tions of the
public and every dem¬
agogic master of those men's emo¬
Federalize
We have
the disintegration
seen
ductive
before,
small
of the
group
our
eyes.
We
see
a
of personal servitors
giving orders to
And in
executive
the leaders of the party.
the other
tent
party, we see a persis¬
effort
under way
and discredit the
organization
as
to
destroy
of
ward with
In
the
ap¬
same.
place,
effort
under
has been
war
so
mismanagement
a
to
the
pro¬
that
nationalism.
new
third
is
I
V
place, the idea of
states' rights and
reviving all
responsibility is
over
the country.
wish you could have seen,
with
the tremendous demonstration
me,
of
this
at
the
recent
Governors'
Conference in Columbus, Ohio.
In
the
as
fourth
a
saw
conference;
them
time,
our
capacity for good gov¬
I
ernment.
that
place, the states
before in
never
40 governors
any
would
make
at
of ten
one
good
a
President of the United States.
These, I submit
elements of
are
hope in the present situation. But
I
cannot
that the
sonal
close
Federalism
When
ties,
without
danger, of the
we
Republican party
such by direct
the
it may be many a year before any
other public leader will come for¬
of the Democratic party organiza¬
tion
never
which Aris¬
nation
our
stress of this
of
tions.
has
But the nature
is
second
showing
we
which
For this reason, the
disease
drum
state,
the
upon
philosophy.
a
erating in this country, can go on
for a very considerable time with¬
if you dis¬
our
of
equal.
an
are,
in
one
pres¬
Greek city;
country the size and pro¬
credit and undermine these' hum¬
elements
not
destructive forces of
first, legal—
for what may seem
you
totle spoke, and which we see op¬
the second,
.
based
Aristotelian
is found in
extra¬
legal—the
party
organization.
These are pretty prosaic elements
in our state.
It is hard, in these
days when men seek glamor, elo¬
quence
and color in leaders, to
plead for hum-drum Congressmen
or county chairmen. It is especial¬
ly hard when every effort is being
made by people who control great
avenues
of public expression to
destroy confidence in Congress
with
appraisal of
any
This nation
power, by controlling the
thinking of the people.
In our form of government, the
The
radio,
our
organization.
leave
conditions
ent
shared
elements.
political dis¬
potent
It
Congress;
the
to
if improperly used, be the
means by which a socalled hero can emerge over the
by-pass, to appeal
the heads of the others who
the
forward
campaign.
will,
most
to
two
who
person
a
national
a
ductiveness
of
..
of
widely-read
the efforts
aristocratical element
was
of the most insidious symp¬
one
endeavored
believe in private
enterprise
they think it will
forth
he. looks
as
in other aristocrats. He constantly
over
Their
state
Our danger is that our in-?
struments of communication, our
confidence of the mass
stroy the
Greek
ease;
individual aristocrat to de¬
an
the
in
beloved by the multitude. The
toms
the other.
was
being undermined by
of
litically joined in the noble enter¬
The first group
aristocratical
describe
That is,
"Where is the man with glamor
and appeal?" I say to you that the
frequency with which this is said
prevent wide-spread unrest of a
revolutionary nature. On the in¬ the monarchical, the aristocratical,
ternational front, its job will be and the democratic elements. But
these elements are constantly ex¬
to prevent any drift into imperial¬
Briefly, the twin dangers before
people. The
to
<
popular leaders, also.
next national
between
pressure, one on
words
bringing
ican
very
as;
had
popular expression of pur search
thing that we hear
on the lips of almost every Amer¬
state
simple
his
ideal
state,
assured
by
a
by
away
balance
erting
them,
popular hero',
a
as
for heroes is the
philosophers.
political
eaten
leader
-
circumstance
political
amples how the fabric of
is
a
vidual by the simple; expediency
wealth
a
ft'
destroy the rule of the few and
to substitute the, rule of an indir
for example, described
of practical ex¬
Aristotle,
ligations of the debt. On the psy¬
chological front, it will be ex¬
one deal
the time has
and the best
classical
.
denounces
sort of saviour of the
of
the financial front,
wealth necessary to meet
stand
<
.
,
.
p
It may
the 3%s and Is.
they
.-Ifir.
to
...
of
regarded
function
.
.
is
these
.
business
■';<
j
a
Whenever
and
up
Greeks
in these past few years, the more
I respect the authenticity of the
On
them.
credit
stands
}.
,
folding
which
presenting
.
;
,
,
.
regime in
logical to expect an issue to
roll over the %s and to pay off the Is in a few weeks . . - Maybe
Morgenthau will raise some new cash while he s at it, too, for the
amount outstanding of the %s is small enough to permit adding a
r "half-billion or billion to the roll-over offer. ...
M
The maturing issue of % s is the smallest out. . . . With the
V
$1,609,000,000 total comparing with other maturities ranging up to
As for the %s
It's
Gamble condemned
.
.
;
,
prise of maintaining the present
AUGUST FINANCING?
$5,251,000,000.
.
to
method picked
enough.
.
.
concerned, the attitude of the experts
are
today is 100.23. ...
The intriguing angle here is that the payment
mark the retirement of another tax-exempt issue from
...
;
out on allotments on recent Wz% issue show $19,543,543,500 subscriptions received, $2,707,264,000 notes alloted.
Showing Morgenthau meant what he said about keeping over-allot¬
ment down.
New York district subscriptions amounted to $7,301,921,000 while allotments totaled only $696,267,000.
Unquestion¬
ably much buying of the 13/4S, H/2s and 2s recently has been due to
activities of banks rounding out their positions in short and inter¬
pected
Sale price
on
.
of that.
Final figures
plished.
.
.
outstanding tax-exmept securities a "right"
Reflection of that is in the minus yield basis
and
.
.
ism.
the
as
to
appears
versus
care
"academically pointless discussion over
voluntary lending."
Asked that it be
as
der
CONVERSION?
As
stopped.
American
.
the Is and the '3%'S.
„
takes
(Continued from page 308)4
thesa tax-exempt securities
next item on the calendar
the
that
clear, even though there may
be doubt as to the conditions un¬
are,
.
So
And
.
subject today
are
Treasury will get its various maturities out of the way before Sep¬
tember and have the "market all set and clean for the big drive. . . .
.
4
can
i
'
'V.i •.
,
particularly
attractive prospect.
Those men
have
many
short-comings
and
have committed many sins., We
have been taught in the past few
years to ridicule them, and to disr
"One-Man Parties" Held Inimical To Freedom
though, that Morgenthau will not wait until the
last day.
It doesn't make sense, despite the fact that he could
do so without trouble.
Instead, the feeling seems to be that the
.
there
that
V
f
•
■■
not
am
was
.
.
Chances
.
mediate classifications.
incidentally,
big Summer for refunding,
a
recognize
I
you've not been following
In case
...
.
on
.
.
.
.
talk
now
refunding,
must
\
in states and counties and towns-—
Selling
of compulsory saving this year," says Ted R.
Gamble, national director of the Treasury's War Finance Divi¬
sion.
of the
starry-eyed
.
system
no
big refunding deal as yet, but the traders are devoting much of their
time these days to figuring out possibilities. . . . And this is the
major story
most
>
.
*
...
we
develop
are
only
is
indicating
new
very
one-man
a
step
per¬
great.
par¬
from
a
one-man state.
In all your calcu¬
would bury you alive; the peals, through powerful instru¬
ments of public opinion, to com¬
latter would exercise you'to death.
lations, keep in mind the neces¬
(1) Do your own refunding if you hold the 3^s or Is, so you
The latter group are like doctors pel the party to surrender its pre¬
can get what tax-exempt issue you want during this slow period. . . .
sity that American citizens who
We hear that party or¬
of 40 years ago who told tubercu¬ rogatives.
(2) Don't gamble on a conversion privilege even though one may
love their country should be
help¬
called
reactionary,
lous patients to get outdoors and ganization
be available on the 3V4S.
visionless, isolationist and the like. ful in keeping party government
(3) Use this period to switch into longer-term tax-exempts so rough it. The former group are like
I realize I may sound like an old alive and be patient in the efforts
the doctors of 90 years ago, who
you'll eliminate the recurring problem of rolling over your port¬
told tuberculous patients that they man stirring the dying embers of of
folio.
'
Congress.
/
had an incurable disease.
I don't theory when I say this.
But I
think we need spend much time in speak the conviction of experi¬
INSIDE THE MARKET
Registration Revoked
between
these ence, and recent .experience at
Market has shown some odd twists recently due to buying of distinguishing
Registration of Frances J.
the taxables and selling of the exempts on the rumor about change groups because the ministrations that, when I say that those forces
of either one will result in the in both parties that thus seek to
in the tax law to make the exempts less attractive. ... The popular
Lubbe, W. C. U. Building, Quincy,
same degree of rigor mortis.
You weaken popular respect for party
23/4s are down to 112.9 at this writing against a high of 112.30. . . .
will be just as dead in one case organization and for Congress are 111., under the Investment advisers
They're stabilizing there, however, and may be on their way up
as
forces that are inimical to ultimate Act,
has been revoked by the
you are in the other.
again soon. . . ,
'
Nor do I need to suggest that in freedom in America. >,!;4
Securities and Exchange Commis¬
;
The new l^s are fast becoming the key issue of the mar¬
the last analysis this problem is
As people
who have r:already sion on. the grounds that the re¬
ket.
Were up to 100.21 before slipping back slightly, indi¬
political. And
since * I
have" a been reminded
very sharply of the
cating closeness of market and continued high-scale buying. . . .
spondent vhad been* permanently
somewhat more professional justi¬ fact that business cannot sustain
Lots of trading in the three 2% loans which have been
fication for discoursing on that
enjoined from engaging in or con¬
the burden that it should assume
hitting new highs.
.
.
The 2s, the l%s of 1948 and the l^s
subject, I should like to add a few after this war, should it be com¬ tinuing certain'conduct and prac¬
seem to be getting most attention now. . . .
remarks, not in the nature of pelled to surrender its essential tices in connection* with her
ac¬
September drive is actualy getting under way now. . . . Mor¬ practical- political advice, but in freedom, I hope that you will
steps on that seem to be:
I-
.
.
.
.
sorrow,
■
.
.
.
.
.
.
and reveal the nature
most vital information on the deal will be out philosophy.
genthau to announce plans in the next coupled of days
Chances are
before August 1.
As for issues available, it will be
goals.
..
.
.
.
'
.
\
"basket" again, with shorts,
and all types of buyers. . . .
Organization of selling groups is going on at a terrific rate. . . .
Nothing like this ever has been attempted before. ... War Finance
Committees are determined to offset bad publicity given to entire
a
intermediates and longs offered to any
-
■
take
away
tivities
of
classical
political
In order that I may
recognize the importance of party
position sufficiently far
from present personalities,
permit
me to go
ent to Aristotle.
back for
The
of
I have
Congress
deserve
a mom¬
more
'
your
practical politics and the
more, that I., have seen of the
un-;party,men all;
seen
-
as
investment adviser ..and
connection
with..the purchase
for n their and sale of securities and that she
stake in the state and your stake had
wilfully made untrue state¬
in the state are interdependent.
ments and omissions of material
<1 realize very1 well * that when I
facts in. her;registration
applica¬
speak of the humble-: labors of
and
my
in
to
freedom.
Both
support;
over
this country-—
tion;'*-
••-'•"••'Vv. V
vii:
v'v:i-V—
Volume
158
« i
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
For SomeTime^ AteHostililies
While expecting
the war,
Cei^ ^ ^
cease,"
us
for
the last shot is
ple,
post-war report of the Transi¬
says a
tional Labor
bly be with
the controls ''should be entirely eliminated as soon as prac¬
fired.
For
industry
tion of
The League points out that the
are
would
approved
Board
short periods of time."
be only for
"Before
.the assumption that war would
tinuance after hostilities are over,
our
ended
were
with the ending of hostilities, the
result would very likely be a rush
of
possible
inadequate
purchasers for the
relax
supply of civilian goods then ex¬
isting,
tion of
serious
businesses.
needs
When
still
military
when
ministration of such
now
determining
plain
The
maintenance
of
itself
reduce
"With
elimination
such
"5. Whether
would
need
the
ican
for
the
"While it would
said:
Board
of
the
controls,
ex¬
a
omy as a
now
our
cal¬
indeed
and
world
read¬
so
another
for
the
lay
bases
goes
to
on
number
(a) that the fullest possible
of
the
Statistics,"
the League
Bulletin
Mission
at
Phillips, Head of the British
C.,
Council
in
Washington,
Grady, President, American Pres¬
ident Lines, former
econ¬
retary
mishandling of the war¬
Assistant Sec¬
of State; Graham Towers,
Governor of the Bank of
Canada;
human
discoveries
a
use
and
inventions,
of
(b) that in
to
time
far
woman
or
should
work
tain
so
as
as
individual
ruption
resulting
than
longer
as
able
be
employment
possible,
and
no
willing
unable
choose
to
no
circumstances to he construed
any
as an
offering oj these securities for sale,
or as an
portunities;
of
the
op¬
i
to
obtain
materials
raw
manufactured
sold
thus
and
the
goods
and
bought
by the progressive removal of ob¬
structions
to
trade;
(g) that the benefits of modern
methods
of
available
the
production
all
to
trade
to
both by
removal
progressive
structions
and
international
ageous
and
"With
the
and
cour¬
in view,
proceeds
to
con¬
policy, both
arise.
international,
to
ob¬
for
periods
icy,
is
avoidedi
great danger to be
a
a
price-boom, which
runaway
would
and
followed
be
collapse
by
unemployment.
is
needed
to
urged
ures
taken
assure
that
wartime
or
consumer,
meas¬
prices and
equitable
an
supplies,
is there¬
It
control
to
of
of
distribution
whether to producer
should not be aban¬
to
ually
or,
(c) that
in
productive
the
use
of
these
the
pro¬
vision of goods and services to
meet
the essential physiological
needs of all classes of the popula¬
tion in food, clothing, house room
resources,
that
In regard to domestic pol¬
when necessary,
new skill;
another
of
measures
development.
sider the problems of
domestic
ob¬
of
by
these objectives
Delegation
made
are
peoples
doned suddenly but relaxed
one
and
those markets is promoted
on
to
from
a
oc-
pro¬
•
■
world
to
access
shortages
as
main
"The
grad¬
overcome.
are
preoccupation is to
get men re-employed and produc¬
tion re-directed
towards
ers' needs when the
falls
off,
rapidly
as
sible without
offer to bug, or as a solicitation
be
pos¬
Stress
is
.policies which will
enterprise
for
demand
as may
stability.'
encourage
schemes
consum¬
war
endangering general
fiscal
on
and for
New Issue
own
(f) that the
liberty of each
country to share in the markets
of the Prospectus.
of such securities. The offer is made only by means
his
cupation is respected and is
moted by equal educational
laid
of an offer to buyt
inter¬
earnings
(e) that the liberty of each in¬
dividual
economic
This is under
of
-
...
occupation
transfer
acquire
from
reduction
or
v
power;
fore
living;
so
*
coun¬
stable economy and rising
standards
man
'
pro¬
and
to attain and maintain in all
F.
Henry
(Chairman);
of
resources
material, of
the skill and enterprise of the in¬
dividual, of available scientific
tries
far
objectives
is made of the
con¬
society distribute, as
possible, the risk to the
reconstruction
duction,
prime
a
■
(d) that
social,
—
is
care
sideration;
war.
announcement
The
of
D.
time controls problem.
ex¬
June
Supply
large majority of Amer¬
post-war
have
we
and meaningless."
Nations
erick
.
American
aims
fundamental
and political—of post¬
reconstructions, foment eco¬
nomic nationalism throughout the
The delegation included Sir Fred¬
Committee.
,
enterprise
entire
be inadvisable to
fix definite calendar dates for the
termination
•
not
importance
war
Princeton,
N. J., contains, in addition to the
regular tables, a summary of the
recent report by the League of
Nations Delegation on Economic
Depressions on "The Transition
from
War
to
Peace
Economy."
engaged in
war work, there is nothing which
could
so
thoroughly wreck the
such controls."
According,
Problems
He said:
business firms.
rubbed out of
until
which is published by
of
of the
Sub-Committee
Post-War
vital
the
general way, the controls
"Monthly
period."
Transition
fair
competitive opportunity for small
The
Post-War
the
only to
every individual but also for the
future of mankind; for a major
depression would surely defeat
of
Policy Discussed In
League Publication
reason¬
were
How can the
high levels of
of
post-war
policy, as defined in the
report, should be to assure
Director
of
Chairman
and
away
of
production and employment best
be assured?
These are questions
"The
John
President of the KingCorp., Ann Arbor, Mich.,
NAM
by
Airey,
Seeley
"3. The stimulation . of civilian
production and employment.
y
"4.
Committee
Problems
"1. The military needs.-....
"2. The prevention of inflation,
run
effected?
be
economic
Post-War
the
pressure
smooth transition to peace econ¬
state:
practical considera¬
which moved
tions
;
.x
the
of
a
unnecessary
controls, both
and in the post-war
Some
particular wartime controls
should be eliminated are:
even
This
ends.
war
By what means can
maintenance
justed ourselves that they become
adequate responsibility in the ad¬
"the principal factors to be taken
into consideration in
and political
to take them off as soon
culations
ably successful unless experienced
and able administrators are given
that
states
cannot be
controls
get very
There will be con¬
popular
cannot be
breaking down, but this trend can
and
should be reversed.,
Such
goods-scramble and inflation.
Sub-Committee
"In
urged
Board
alike
men
an
omy
and medical
Peace
to
economic
is
going on.
the
business
a
con¬
controls
be
im¬
the present time,"
the
Board
statement
declared,
"such controls are progressively
required neverthe¬
less, until business is enabled to
reconvert to peacetime operation
of goods on a
production scale
which will eliminate the danger
the
of
War
official international body
to the questions: How
can
the
world avoid a serious post-war
with the situation.
ing
wartime
proved."
"At
continue to be
a
wartime
and
should not be allowed to
"that the administration of exist¬
longer require the cur¬
rent wartime controls, according
to the NAM directors, they would
The
the
of
pressure
rid
get
have had time to
siderable
as
finally
controls, everybody—
tired of them.
at least
or
while the fighting
even
Meanwhile,
no
of
eliminate
to
some
trols
involving a serious infla¬
prices to the consumer and
practical
handicaps fo^
small
—will
multiplying battlefronts; and
that the corresponding return of
some
war
plants to civilian pro¬
duction would probably make it
The Committee emphasized that,
we
consumer
probably not end on the same day
in both
hemispheres and on all
if all wartime controls
depression?
first.
the wartime
real need for their temporary con¬
,;
by
The Board statement of its posi¬
tion, pointed out that it was based
on
industry,
fied
tension of existing controls should
Directors, which* stated
judgment, based on the
report, "if the administration of
.wartime controls over prices, ra¬
tioning, pay, jobs and materials
can be improved, there may be a
civilian
from
Transition
Economy" lies in the fact that it
is the first comprehensive answer
certainly have to continue
as long
as the war lasts, so that
war needs may certainly be satis¬
Association's^*
the
by
of
that in its
and
number of other countries.
importance of the report on "The
the
which adds: ''Such action would
,
a
exam¬
war
which
ficials,
the mate¬
us,
at
controls
Office; and high of¬
bankers and economists
from
*
base of the division between
stimulate free enterprise, the restora¬
competition an<l the provision of jobs." The report has been
Goodrich, Chairman of the
Governing Body of the Interna¬
time after
some
it seemed to
as
rials
National .Association^ of ^Manufacturers^
Sub-Committee of the
Carter
materials-priorities and the rest of
4he wartime, controls will proba¬
wartime controls to continue:for sometime after
ticable after .hostilities
tion
.:^'Tt :4s>,our, judgment" that ration
books^price ceilings, job freezing,
Wartime Gontrols Gontinuing
HAMfiBoairil
319
of
and
teaching
skills
new
helping workers find new
employment.
•
'
:J
'
'."
'
:
-v.
.
■
.
.
.:
-V;'-
•
•
•
•
•;
•
-V'
'•
$7,000,000
;
of
lack
"The
for
general plan
any
getting business started in the
war-stricken areas-after 1918 was,
is
it
of
Consolidated Cigar Corporation
argued,
important cause
an
of currencies in Eu¬
the collapse
[
'
..
t
Ten Year 3"/4% Sinking Fund Debentures
•
>,
"*" e\
'
''**•' V ..V'V'
'r-y-
A
A
.
V
'
The
period
•
demonstrates the
tive need both of
;
.
i
impera-"
government ac¬
intergovernmental
tion and of
-.-.A
that
of
experience
rope.
•'A;;'."
and
breakdown
economic
the
co¬
operation in solving the far graver
,
Dated July 1,1943
i
Interest
.
;;
v
.
Due July 1,1953
,
international
payable January 1 and July 1
of trans¬
problems
ition after the
present war. These
problems are discussed at
relief,
Price 101% and accrued interest
international
the
crude
for
demand
the
interna¬
products,
demand
tional
and
capital
for
and mul¬
credit, exchange control
tilateral
length
headings:
following
the
under
clearings, the control of
inflation, long-term lending, com¬
Copies of the Prospectus are obtainablefrom only such of the
as are
registered dealers in securities
in
undersigned
mercial
this Stale.
policy,
and
gans;
international or¬
number
a
of recom¬
mendations are set
forth concern¬
ing the
and the proc¬
held
Eastman, Dillon
&
Co.
require.
to
V
yi"
measures
which their solution is
esses
in
points are emphasized
"Two
J
.
Kidder, Peabody & Co.
The First Boston Corporation
,
&
Lehman Brothers
Co., Inc.
tional
E. H. Rollins
&
Sons
&
Co.
agencies
bases of a
cess
ter
various
that
may
prove
policies
are
•
essential
durable peace, the suc¬
of all effects to
on
the
interna¬
create a bet-^i
economic world ultimately
pends
of
co-ordinating
secondly that, if wise
necessary;
Incorporated
July 16, 1943.
the
of
economic
Riter
for
found
be
policies
Blyth;
must
conclusion: first, that means
the firm
political
de¬
establishment
security."
,
••••;•*
THE COMMERCIAL & FINANCIAL CHRONICLE
,320
of Italy's
unworthy
was
traditions of freedom
ancient
Opportunity For Investment Dealers
:
owe
Desiring Successful Advertising Campaign
A
of advertisements adaptable to
series
your
only
be
can
dealer in
one
Financial
The
Chronicle,
and
25
For details, write
Spruce St.,
Box RR7,
York
New
City
on
7.
Unscrupulous
Investor ?
From the
them
from
of
some
their
doubtless look at
would
customers,
to protect
own
the average
person
in amazement.
Yet, there is hardly a
broker, dealer, or salesman who won't recognize the following little
story as one of several variations of what happens far too often
you
when those in the securities business deal with the
over
the vast
States
Italy's
by
Allied
sea
sea
has
opposed to
the
recognize
you
refuse to
Germans
Rule
X-10A-1
in
ments
not
end
July
that
so
special
a
constitute
allot¬
over
will
violation of
a
offering
that
rule.
The
Stock
also
rules
■
of
New
the
York
the
following respects:
(1) To permit
7'7
(2) To prohibit a member from
hope for Italy's sur¬
to day. ■"
;:i '•
-7.7
v";; v'"'
; ■:7\' •77-;;'777
receiving any part of the special
vival lies in honorable capitula¬
Last week one of our dealer friends received a call from a
commission
in
connection
with
tion to the overwhelming power
customer whom he had known for quite some time/ This customer
any purchase, not only as at pres¬
of
the
military forces
of the
said he had heard that a certain low priced stock had excellent post¬
ent for his own account or the ac¬
United Nations.
If you continue
war prospects
and he asked the dealer for an opinion. The dealer
count of
any
other member or
to
tolerate the Fascist regime
checked up quite carefully and reported back to the customer that in
member firm,
but also for any
which serves the evil power of
his opinion "the stock looked like a promising low priced specula¬
partner of a member firm.
the Nazis, you must suffer the
tion."
The customer bought a hundred shares.
Since the dealer
(3) To simplify the language of
knew this customer he took his order over the telephone and duly consequences of your own choice. Rule 494
covering the printing of
We take no satisfaction in invad¬
confirmed the sale. The market was over the counter and he made
special offering transactions on
his sale at three-eights of a point above what he checked to be the ing Italian soil and bringing the the
tape. current "inside" offering price.
So far so good—our dealer friend tragic devastation of war home
(4) To delete the present re¬
to the Italian people.
figured out that he had made a "gross" profit of $37.50 before taxes,
quirement to reconfirm essential
"But we are determined to de¬
clearance, etc. But he didn't know that his customer had a friend who
details of special offering trans¬
stroy the false leaders and their actions on statements of account.
also wanted to be a speculator.
which
have
brought
The next day his phone rang again. This time he was told that doctrines
(5) To make more specific the
since his services had been so highly recommended by his customer Italy to her present position.
disclosure to customers called for
>
the
of
"The
of the line
"Every moment that you resist
the combined forces of the United
do
before
the speaker
that
so.
the
on
other end
•
That evening he sent
out his confirmation in the regular course
This time
"•of business and the next morning his telephone rang again.
was not the new customer of the day before on the phone but his
wife.
She started in, "you know that stock YOU SOLD my husband
it
,
yesterday (get the YOU SOLD), well we talked to a friend of ours
and he said he had never heard of it—it's not even listed on the
market—and it
qan't be much good. We've decided we don't want it."
Seeing what he was up against, this dealer didn't argue. Of course,
he asked the woman a few questions such as: Have you ever bought
stock before and have you the money to lose in case a speculation
turns out unfavorably?
Seeing that the answer to these and similar
questions would be in the negative he decided to let well enough
..alone and proceeded to cancel the trade. After he had sold out this
second hundred shares at the bid price, which had slipped a quarter
point in a market that didn't look too promising, his net profit on the
by Rule 496 (b) and (c).
The
closure of
sacrifice—can serve only one
purpose: To give the Fascist and
tions."
you
Nazi leaders
time to
more
of their own crimes.
"All your interests and all your
have been betrayed by
Nazi Germany
and your own false
corrupt leaders; it is only by
the
"terms
those
and
and
terms
condi¬
for
in
considering
an
application for
a special offering,
require weekly instead of daily
price range and volume of the
to
security
for
period
of
six
date of the
a
months
tuted
proposed offering.
prior
the
to
first 100 shares
There
turned into
was
to
be
a
loss.
one
a
who
every
remedy for such
one
unreliable and the amount involved
was
business where
phone
only
transactions
more
are
cases
was
consummated
day in the week than possibly
any
as
small. But in
the tele¬
over
other line of endeavor
it is essential that you not only know your customers—but that the
orders they place are clearly understood by both parties concerned.
has
time
"The
come
now
for
the Italian people, to consult
your
own
these.
That's be careful! Of course, here was a time when the dealer relied
upon the fact that he thought his customer would not send him any¬
seems
respected place in the family of
European nations.
for
sire
and your
own self-respect
interest and your
Appeal To Italian
People To Surrender-Say Resistance Hopeless
President
Britain
told
Roosevelt
the Italian
Prime
and
people
on
Minister
Churchill
Great
of
July 17 that the "sole hope for
Italy's survival lies in honorable capitulation to the overwhelming
power
of the military forces of the United Nations" but that by con¬
tinuing to tolerate the Fascist regime they must "suffer the conse¬
a
dignity, security and peace.
The
time has come for you to decide
whether
Italians
shall die for
Mussolini and Hitler—or live for
civilization."
Italy, and for
The joint statement, made
his
the time has come for the Italian
which
Alexander,
carrying the war deep into
territory of your country.
deputy,
Gen.
are
the
"This is the direct consequence
of
shameful
the
leadership
to
shall die for Mussolini and Hitler
you have been subjected
by Mussolini and his Fascist re¬
gime.
C
and for civil¬
"Mussolini carried you into this
people "to decide whether Italians
—or
live for Italy,
ization."
,
war
"shameful
leadership"
as
the
satellite
of
a
brutal
by
Mussolini and his Fascist regime
destroyer of peoples and liberties.
stressed and disavowed of
both
Nazi
Germany
and their
this
The
was
own
the
leaders
false
Italians.
The
-text
Churchill
cording
"At
on
-
of
the
statement
to
urged
was
Rooseveltfollows,
ac¬
the Associated Press:
this moment the combined
prmed forces of the United
States
Britain,
under
the
command of Gen. Eisenhower and
and
Great
The
"Mussolini
plunged
you
into
which he thought Hit¬
ler had already won.
In spite of
war,
Italy's great vulnerability to at¬
tack by air and sea, your Fascist
leaders sent your sons, your ships,
your air forces, to distant battle¬
fields to aid Germany in her at¬
tempt to
conquer
England, Rus-
sia and the world.
"This
association
with' the
de¬
signs of Nazi-controlled Germany
detailed
Banking
tion
present require¬
ment to keep an uncompleted of¬
fering open at least three hours,
but instead to require that the
terminated without
proval.
*,
banks in the
war effort.
This was one of the
broadcasts in the series "The Na¬
tion at War" which has been on
13 months
public service feature of the
Network in cooperation with
the air during the past
National
Informa¬
Industrial
and the National
Association of Manufacturers. ,
tion
Committe
In order to
explain how Ration
Banking operates, a typical Ra¬
tion
Banking
transaction
was
picked
up
ufacturers
from the office of Man¬
Trust Company in the
Building
where
George T. Newell, Vice-President
in Charge, explained how Ration
Banking
accounts are handled,
and the general advantages of ra¬
tion banking to the retail trade.
Empire
State
Manufacturers
Trust
Company,
through its 68 banking offices in
Greater
New
handle the
tion
claims
to
largest volume of
ra¬
banking
York City.
1,000,000
not be
Exchange
ap¬
flation.
'•,
'
To
In
Washington advices, July 11,
York,
business
in
On the average,
ration
coupons
posited at the bank
every
are
New
over
de¬
day»r,
28th
annual
further
hold
convention
its
the
at
Edgewater Beach Hotel, Chicago,
Oct. 19, 20, and 21.
The con¬
vention in 1942 was held entirely
by mail.
of
the
"On that
date, the index of the
acre values (1912-14
to 100) stood at 99
for the country as a whole, as
compared with 91 in March, 1942,
average
has
equal
85
1941, and
in
noon
on
the 19th to
"
'The low point reached
on
General
Chairman
of
the
con¬
vention is Lewis F.
Gordon, First
Vice-President
qf
the
tion
President
Citizens
Vice
&
Southern
Associa¬
of
the
National
Bank, Atlanta, Ga.
Chairman of
the
Program
Committee
is
Robert Lindquist,
publicity
can
in 1933
the final aftermath of
was
flationary
an
in¬
motion
that
war, a process
climax
a
in
set
process
during the last
reached
immediately
afterward, in 1919 and
1920,' the
OWI stated.
"
'Swollen land
demand
for
farm
through the
that
land
paying heavy wartime
based
for
on
products.' 7"
received
'7.
?
.
said that
agency
was
dividends
excessive prices
farm
"The
in those
values
two years came about
7
factor
a
inflat i
0 n a r y
tendencies in land values,
accord¬
combatting
Agricultural■*
ing to the Bureau of
Economics
the
of
Agriculture,
Department of
the fact that in
was
1942 farmers
times
paid off about three
much of their mortgage
as
indebtedness
as
they had paid off,
the average, during
three previous years.
each of the
"In 1942, for the first time in
twenty years, the annual average
of farm prices reached parity with
other
prices, the OWI said.
"Since
the
of
outbreak
;
war,
it
continued, the average of farm
prices had risen more than 90%
income
farm
while
the
by about 80%,
of prices paid
average
by farmers, including interest and
taxes, had increased about 25%.
'The
favorable cash posi¬
more
of
the
farmer has
natural rise in all
average
a
bear
watching,'
the
agency
re¬
ported.
"The
of
Bureau
Agricultural
Economics found that
1,
1943,
those
increases
of
the
20 to 24%
in
16
in
as
of March
value
over
year
were
previous
in 13 States, 15 to 19%
States,
States
and
to
14%
in
11
than
10%
in
six
10
less
States."
manager
National
Money In Circulation
adver¬
noon
21st.
and
low of 73 in
a
1933.
scheduled
war
tising conference of two full days
the
per
being
The Board of Directors
Association
year's shortened
from
was
the more recent
upswing in farm land values will
Chicago
will
it
reported:
brought about
on
this
"Times"
the New York
to
farm values, but
Action," the Financial Adver¬
Association
not at the
March
1, 1943, were noticeably
higher than a year earlier.
"
Adopting the descriptive phrase,
"Collective Thinking for Individ¬
tisers
/V.7
/
were
stage which led to the
catastrophe of 1921," the OWI
said, farm real estate values on
special offering.
To Meet In
the
"boom
tion
ual
v./' /
Although values
and
;•
Financial Advertisers
voted to the role of
the
may
permit the inclusion in
the special offering of stock ac¬
quired in stabilizing during the
(8)
operation of Ra¬
was set forth on
July 13 in a radio broadcast over
the Blue Network which was de¬
a
the
remove
Banking Explained
Ration
Blue
pub-^
Washington,
London and Algiers, was broad¬
cast by Allied radios and dropped
by planes on Italian soil.
The
message emphasized that
lie simultaneously in
effective period of 15 minutes and
to
life of the
as
quences" of the devastation of war at home.
To provide for a minimum
de¬
restoration of national uncompleted offering
own
In Radio Broadcast
Roosevelt And Churchill
(7)
rise
on
•
Italy can hope to occupy a
general
a
of
July II
of values
on
subsequent "disastrous" de¬
a
now
called
those
with
warned
war,
and
Information,
trends
current' price
lands
against
conditions
(6) In connection with informa¬
disavowing both that a reconsti¬
you,
farm
The amendment describes
are.
tion
traditions
and
what
from the inevitable conse¬
quences
/
little
a
calls for dis¬
present rule
Nations—every drop of blood that
escape
of
sole
thought he too would like to buy some of the "promising stock."
This dealer knowing his other customer quite well and believing that
he could take this second order over the telephone proceeded to
day
The Office of War
comparing
allotments
over
this
to
1
7::,7 7.' '':;7;7v^
to 10%.
up
' \
exemption
Upswing In Farm Land
Values Bears Watching
announced
Exchange.
The
conditional
last
SEC
\ plans of the New York Curb Exi change and the San Francisco
the
as
master race.
public from day
to
used to in¬ Stock Exchange covering special
destruction and offerings have been amended in
all those who
on
due
one
31. The Commission also amended
been
slavery,
death
exchanges.
The
originally adopted on<S>-
—the latter
which
Germany—power
ruthlessly
flict
securities
was
,
Feb. 6, 1942, and subsequently ex¬
tended for two six-month periods
fectiveness of the special offering
pledged to destroy the power
Nazi
national
rule
the indefinite extension of the ef¬
con-
,
,
the
ce.ntrated in the.Mediterranean.
of
July 6 the amended plan of special offerings of the New York
Exchange.
.
'
•
,
: .
Coincident with this action, the SEC extended indefinitely the
provisions of Rule X-10B-2 which authorizes special offerings on
Stock
ever
power
now
of
as
of British
accumulation
greatest
-
SEC of their
an
so-called
skies
threatened
are
"The forces
made the remark outside the securities business that
sometimes brokers and dealers need
Britain.
Great
coasts
are
If you ever
The
armadas of the United
and
Broker-Dealer
•
dominated by
are
and
The Securities Salesman's Corner
fronts.
all
on
air
Protecting the
Germany's hopes for
have been blasted
"Today
Italy
About
front
Russian
the
on
every
world conquest
1
How
fought not
Italy but for
They have fought
of
battlefield in Africa
from El Alamein to Cape Bon.
but not in North and South Caro¬
state,
a
First come—first served.
lina.
Germans
Available to
arranged—the cost is moderate.
7
•The Securities and Exchange Commission has declared effective
soldiers have
interests
courageously, but they have been
betrayed and abandoned by the
These ads have produced unusu¬
ally successful results by actual ytests.
\ >^*7 v7
requirements is available.
Trial
the
Nazi Germany.
individual
own
much.
so
"Your
in
the peoples
Great
Britain
and
America
•Thursday, July 22, 1943
NYSE Amended Special Offering PlanDeclared EffecSive By SEC
and culture
—traditions to which
of
■i't
J1,
advertising and
of the Ameri¬
& Trust Co.,
Bank
The
Treasury Department in
Washington has issued the custom¬
ary
monthly statement showing
the amount of money in circula¬
tion after deducting the moneys
held in the United States Treasury
and
by
Federal
and agents.
are
that
for
May
the
Reserve
Banks
The figures this time
31,
money
1943, and show
in circulation at
that date (including of course, that
held in bank vaults of member
banks of the Federal Reserve Sys¬
of the tem) was $17,113,731,415 as against
FAA.
"Business every minute" $16,659,573,874 on April 30, 1943,.
will
be
the
watchword
of
the and
$12,073,980,785 on May 31,
convention said L. E. Townsend, 1942, and compares with $5,698,President, in announcing the de¬ 214,612 on Oct. 31, 1920. Just be¬
Chicago,
and
cision
the
of
a
Director
Board
of the Association.
program
of
Directors
Details of the
will be announced later.
fore
the
World
outbreak
of
the
first
War, that is, on June 30,
1914, the total was $3,459,434,174.
1A ,yd
hwhtonij /*•'fjw'.t^^1''^.1
.
j\
.•'.!
t' -'«■.. i
a<k
.Volume 158
policy after the
Study Trade Relations
New Record
The
Third
National
of
Bank
Nashville,
F.
Tenn.,
M.
Farris,
countries
wmcn
those
and
avoid such
the
free
be
ap¬
play
coun¬
substantially
ments
author
numbef
proceeds to formulate a
of objectives
and con¬
structive proposals for the future.
The
Between Free-Market and
Uni¬
York
copy.
v
,
v—
Attractive Possibilities
The
situation
current
in
Bottlers, Inc., offers inter¬
esting possibilities, according to a
circular being distributed by Hoit,
Rose & Troster, 74 Trinity Place,
New
York
City,
circular may be
firm upon
Copies
of
request,
the
Third
National
combined
Besides Mr. Far¬
Vice-Chairman.
call, June 30,
Bank
had
a
surplus and
undivided
profits account of $2,239,414.36, in
addition to its capital of $1,000,C00.
On the asset side, the cash
and due from banks stood at $17,697,865.64, United States bonds
$21,073,253.79, while State, county
ris, the President, the senior of¬
ficers
are:
J.
ylEJ.'."': • J>:- i".. VT a^Th^'fVice-r.
Johnson,
W.
D.
This announcement is not
Officer; W.
Vice-President
Diehl,
Cashier;
Trust
and
President
The
an offer to sell or a solicitation of an offer to buy these securities.
Offering is made only by the Offering Circular.
'
,
i*•>» w/
and
S.
M,
Fleming, W. J. Bryan and J. G.
Ward, Vice-Presidents.
1934560
$6,700,000
Gulf, Mobile and Ohio Railroad Company
Condemns Moves To Force Securities On
To Exchanges
To be dated
Editor, Commercial & Financial Chronicle:
In spite of the fact that many officials in Washington are work¬
ing in the interests of the small business man, there are elements
connected with the securities business which apparently are trying
to drive all transactions on to the exchanges and this means into
hands of the larger organizations.
The new proposal was carried in
Times
of
local
the
c.n
of
proposition,
This
exchanges.
rings
course,
a
respective note in the hearts
of the exchanges.
As a result of this proposition
very
the
of
president
the Baltimore
recently writ¬
Stock Exchange has
ten
letter
a
to
all
of
members
the idea as
put forth by the SEC.
While I
have not gone to the trouble of
totaling the volume of business
upholding
Congress
transacted
on
the Baltimore Stock
Exchange, according to your com¬
pilation for the week ending July
16
sales
stock
the
for
the week
approximately 5,000 shares
were
and the bond transactions $10,200
During the previous
value.
par
week the stock volume was
about
Values Of Old
Proposed
Consolidated Mo.-Pacific
An estimate of the value
of old
outstanding issues of the Missouri
Pacific Railroad Co., the Interna¬
tional-Great
Northern
Railroad
*'
potential value under the
proposed new consolidated Miss¬
ouri Pacific Railroad System is
The
i
>
of Blair & Co.,
Inc.
As of June 14, 1943 the market
value of ail outstanding issues of
man
the three companies
3,600 shares and the bonds were
about $18,000
par value.
It is
understandable that an exchange
which contributes so little to the
metropolis
the. size of Baltimore, would like
to see additional securities forced
on to its list.
Under free and un¬
restricted trading the Baltimore
Stock Exchange is, from its own
volume reports, not a factor in the
Missouri
securities business of a
business.
securities
proposition is just
of the "equaliza¬
tion
argument" which went»on
some time ago and it is my per¬
sonal opinion that this movement
should be defeated.
I trust you
will use your great influence in
the securities business in arous¬
entire
This
another
phase
public opinion against the
of this proposed rule of
ing
passage
the
sec-b
New
000,000
lichtensteiN.
York City,
of
potential
old
possibly have
the
of
Mtge. Ctfs.
series
C-2
first mortgage
33,173,151
.
Rate
Maturity
Yield
3%
1944
1.125%
&
Situation Looks Good
Francisco
interesting situ¬
ation, according to a memorandum
issued by Raymond &
Co., 148
memorandum
Wood,
3 %
Yield
2.90%
1949
500,000
3
,1945
1.5ft
400,000
3Vi
1950
3.15
500,000
3
1946
1.90
400,000
5Vz
1951
3.30
2.30
400,000
3V2
1952
3.40
2,500,000
3%
1953
3.60
5%
Pacific
first
bonds,
1965-
Subject to the terms and conditions of the Company's Invitation for Bids dated July 7,1943, the undersigned have agreed
severally to purchase the Series A Bonds from the Company at 100.1602% and accrued interest. These Bonds are offered
subject to prior sale, when, as and if issued and accepted by the undersigned and subject to authorization by the Interstate
Commerce Commission of their issuance and sale and to approval of counsel as to all legal matters in connection therewith.
It is
expected that Bonds in temporary form will be available for delivery on or about July 29, 1943. A statement with
stabilizing the price of the Series A Bonds is contained in the Offering Circular, without assurance, however,
that the price will be stabilized. The Offering Circular may be obtained in any State in which this announcement is circulated
from only such of the undersigned and other dealers as may lawfully offer these securities in such State.
respect to
HALSEY, STUART &. CO. INC.
Gundy
request from Raymond & Co.
3EPU
CENTRAL REPUBLIC COMPANY
OTIS & CO.
&
Co., Inc., 14
Wall Street, New York City, have
prepared a table of valuations of
of
those
required
to
file
The valuations
are
expressed in U. S. dollars and
listed
as
lated by
Copies
be
of
May 31, 1943
(incorporated)
(incorf
of
this
FIRST OF
•
MICHIGAN CORPORATION
NASHVILLE SECURITIES COMPANY
F. S. YANTIS & CO.
BLAIR, BONNER &, CO.
MERRILL LYNCH, PIERCE, FENNER & BEANE
SHROPSHIRE &, COMPANY
SILLS, TROXELL &, MINTON
and author¬
Definitive Bonds in coupon form in the denomination of $1,000 registerable as to principal and in fully registered form in denomination of SI ,000
ized multiples thereof. Principal and semi-annual interest. January 1 and July 1. payable at the office of Halsey. Stuart & Co. Inc. in New York or Chicago
or at the
agency of the Company in Mobile. Bonds due 1944-52 inclusive not redeemable prior to maturity. Bonds due 1953 redeemable at the option ol the
Company, in whole or in part, on any interest payment date on sixty days' published notice at 103)4% to and including July 1, 1944; thereafter at redemption
stipu¬
tabulation
WATKINS, MORROW & CO.
are
The information contained here¬
it to be correct asol this date.
on each July 2 as set forth in the Offering Circular, plus in each instance accrued interest to the date of redemption.
in has been carefully compiled from sources considered
reliable, and while not guaranteed as to completeness or accuracy, we believe
prices reduced
may
Wood, Gundy & Co.
request; *
DEMPSEY-DETMER &, CO.
THE ROBINSON-HUMPHREY COMPANY
the Treasury Dept.
had from
upon
as
HALLGARTEN &. CO.
Form
TFR-500 with the U. S. Treasury
Department.
discussing
the situation in detail may be had
upon
$ 500,000
Maturity
2.60
of 1975.
Arbitrage possibilities are also
discussed briefly.
Copies of this
interesting report may be ob¬
tained from Blair & Co., Inc., 44
Wall Street, New York City.
Street, Boston, Mass/ Copies
this
.
Rate
Amount
1947
Canadian bonds for the assistance
State
'
I
Amount
$500,000
(incorf>orated)
be
St. Louis-San Francisco
of
5,648,668
certifi¬ Canadian Bond Values
request.
an
3,661,460
1948
Form TFR-500
Louis-San
•"
>1/)50,100 / j
568,620
?
1,261,458
2,769,533.
2,174,134
1,888,820
2,251,267 .
1,605,172
3,775,475
5,796,913.;. I
(controlled leased line). The amounts shown in
3
Mortgage Co.
Copies of this analysis may
had from Seligman, Lubetkin
St.
.
,
AMOUNTS, MATURITIES AND YIELDS
Tabulated For
of 1978 offer
.
\
$ 925,019
482,497
1,173,074
2,675,310
2,081,960
1,794,596
2,154,857
1,505,525
-
3
originally issued and guar¬
anteed
by New York Title &
cates
Co. upon
i
77.49%
81.44
78.66
70.74
75.44
.74.82.
74.29
76.46
68.19
62.32
Available for
500,000
1981, and $417.90 for the Missouri
Series C-2 Interesting
Seligman, Lubetkin & Co., Inc.,
41 Broad Street, New York City,
have
prepared an
analysis of
$10,217,888
11,219,112
11,819,779
12,832,128
14,809,780
13,425,925
13,862*745
14,298,788
16,126,523
20,674,982
15,026,961
18,140,610
19,631,924
»
Fixed Charges*
500,000
the new se¬
figure of $823.-
Pacific general 4% bonds
N. Y. Title and
>
Income
,
Income
.
a
Missouri
refunding
terms
$13,186,200
13,775,785
/:.
Excludes inter-company transactions with New Orleans Great Northern Railway Company
this column are stated after all Federal and State income taxes.
*
estimated
in
Expenses
Operating
Operating
■ Ratfo
••;/
Operating
of
value
curities, includes
for
the
of
issues
ij
J
f
completion of the present financing, annua! interest charges on all fixed interest debt to be out- ^ '
standing with the public, consisting of Collateral Trust Bonds, First and Refunding Mortgage Bonds, .
and Equipment obligations, together with annual net fixed lease rental, will amount to not more than /
$1,085/79.
•
allowing for interest
or
possible retire¬
tabulation
A
value
.
On
ment of certain issues.
and
July 19, 1943.
not
distributions
......
1942....".
Net Railway
Total Railway
(
17,945,443
18,660,835
18,701,182
23,647,846
1939......:
alone of almost $150,-
cash items
•
.....
1938.....
*
Operating
Revenues
1937...
a
In addition the company at
1929.
Total Railway
/
1934....
$231,000,000 which was
$90,000,000 more than was pro¬
duced in 1929 by the old Missouri
Pacific
Railroad,
and
reported
over
$66,000,000 of gross income
available for distribution, a gain
of
more
than
$36,000,000 over
the end of 1943 may
'
31,1942,
1933.......
of
gross
30
g
$270,000,000 the report
as
against 1929 valua¬
$700,000,000, despite the
that
last
year
the
new
did
on
Vfar Ended
December 31
totalled only
System
\
Summary of Earnings "Of the Company and predecessors which follows has been prepared from the '
Condensed Income Accounts in the Offering Circular and is subject to the notes forming an integral
part thereof and to the information in the Statement of Profit and Loss set forth in the Offering
Circular. This summary should also be read in
conjunction with other information set forth in the
Offering Circular under the caption "Estimated Additional Revenues and Savings in Expenses Result¬
ing from Consolidation";
of
Pacific
December
operated 1,969 miles of single track railroad of which 1,435 m'Jes
were owned, 228 miles
..operated-under lease and 306 miles operated under trackage rights. This
mileage connects the Gulf ports of Mobile and New Orleans with the important St. Louis gateway,
while a line to Montgomery, Alabama, provides access to the Southeast, and trackage right mileage
connects Memphis and
Birmingham with the main line. More than 92% of the'Company's operating
revenues for 1942 were derived from
freight traffic. The Company normally carries a substantially
diversified traffic in commodities and normally originates and terminates about 24%, originates and
delivers to connecting lines about 27%, receives from connecting lines and terminates about 26%,
and acts as a bridge line for about 23% of the total freight tonnage it handles. Further information
with respect to the Company, its business and financial condition is contained in the Offering Circular.
discloses
fact
subject to authorization by the Interstate Commerce Commission
t
Company,
around
tion
are
3'£/;/;•
v■>
secured, ratably with $8,700,000 Series B Bonds, by the pledge initially under
the Indenture of First and RefundingMortgage 5% Bonds, Series C, due 1963 (issued under the same
indenture as the First and Refunding Mortgage 4% Bonds, Series B, due July I, 1975) in a principal
amount equal to
150% of the aggregate principal amount of Collateral Trust Bonds. The Indenture
will provide that as Collateral Trust Bonds are retired no pledged bonds may be released unless, after
each such release, the remaining principal amount of
pledged bonds shall be at least equal to 200%
of the aggregate principal amount of Series A and Series B Bonds* which remain outstanding.
Co., and the New Orleans, Texas
Mexico Railway Co., in terms
supplied in a report prepared for
Blair & Co., Inc., by Thomas G.
Campbell, Railroad Consultant, in
collaboration with Frank B. Bate-
of these Bonds
These Series A Bonds will be
&
of their
:
To be due July 1,1944-53
is merely a brief outline of certain information contained in the Offering Circular dated July 20, J 943, and is
subject to the more detailed statements therein. The entire Offering Circular should be read prior to any purchase oj these Bonds.
full in the issue of the New York
Issues Under
Bonds, Series A
1,1943
The following
and
15
July
The issuance and sale
■The
it has to<^
listing and/or trading Tabulate
July
do with the
Collateral Trust
July 22. 1943.
this
obtained from the
-
At the latest bank
Red
Rock
study, entitled "Trade Re¬
lations
from Columbia
Service, 2970 Broadway,
City; cost $1.00 per
New
free
attempts made to meet those dif¬
ficulties. From this appraisal, the
mechanism
tion, which is likely to be one of
the major problems of commercial
a
Economies," will be
July 27th, and may,7}
on
obtained
versity Press, International Docu¬
growth of quotas, exchange con¬
trol, and Government monopolies
elsewhere and by appraising the
to
of the price
only or mainly by'
tariffs is the subject
of a new
publication of International Docu¬
ments Service (League of Nations
Publication 1943.II.A.4). The ques¬
ence
who
published
trading system were faced in the
nineteen-thirties because of the
influ¬
to
with
tries
suoject
desire
which
controls and
Chicago,
difficulties with which
the
their foreign trade to direct regu¬
lation
Controlled
is studied by
proaches the problem by analyzing
The form of trading relation¬
ships which should be established
oetween
of
versity
Controlled Economies
President, is forging ahead in deposit accounts and resources of every
kind. Nashville's youngest bank, organized in 1927, is now the second
largest bank in that city. The Third National's record of growth
may be gathered from its comparative record of deposits which has
been continuous from the opening day, on July 18, 1927, without
the aid of mergers or consolida- '♦>and municipal were $13,127,221.21,
tions, viz:
July 18, 1927—.___
$ 1,018,140.93 corporate bonds and securities $1,June 30, 1931
.f, 6,787,036.34 309,898.33, loans and discounts ag¬
June 30, 1935_„_
16,935,435.40 gregated $14,117,097.86, and total
resources
$68,564,436.36.
N. A.
June 30, 1939_
26,308,531.60
Crockett
is : Chairman
of
the
June 30, 1942_____
-45,965,094.59
Board and
Watkins Crockett is
June 30, 1943
64,897,962.24
war
Professor Jacob Viner of 4he Uni¬
Free-Market and
Between
V
k#*" \,y i*
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
-
j# «
vl,*^
THE COMMERCIAL & FINANCIAL CHRONICLE
322
•Abandonment
By SEC
^ f
Of Theory Of Mark-Up
Contends That Re-Sale Price of Oil Royalties
Must Bear
Reasonable Relation To "Contemporaneous
In
recent article
a
of 'The
will
of
with it the implied repre¬
price,"
was
available
made
as
of New York:
oil
that
contended
are
der
is
infere nee
1
ties
to that
the Se¬
Up
time
market
value for the sales and pur¬
chase of
these royalties to
Exchange
Commis
i
s
further
the
where
observe
standard
up
by it
tnot
this
set
pre¬
mar¬
price,;
ket
Metz
M.
misrepresentation
IS
0^ |ga|jng
3451,
and
a
his
8389,
as
a
hangs here
reminder of an age gone by,'
Ickes put responsibility for
a
"
No.
Order
Executive
a
stuffed for
was
posterity and who
on
to see
museum
Dealer who
'new
listeners
war
now
right
program
on
"
the dol~
and
pression, in only
did
un¬
of the Order—
A
general license is hereby grant¬
ed
under
section 2A(2)
of the
Order authorizing
transfer
or
within
the acquisition
to,
the United
any
States
person
of any
Nelson,
others
These
Stettinius
whom
I
the
are
President
and
men
has
run¬
whom
to
given vast powers.
pondering this
also that, many of
consider
to
-
Dividend
Price Range
$2.46
$3.00
3.84
3.00
83
1935.
5.45
4.00.
85
-
1936
7.75
6.00
123.
-
-70
\-1937-__^.
16.60
10.00
133.
-
-70
1938__._.
1.36
2.00
92
-
-46
1939
3.63
3.50
69
-
-43
1934___
v
;
■;
80
v'
1940-L—
3.03
'3.00
a
1941____.
11.01
5.50
5.49
5.00
-50
62
/ 1942-—.
-16'/a
59
Based,
shares
94,018
oa
outstanding.
•
-60 >/2
.<
65 V4- -37
of
-43'/a
-
.
-40
-
stock
capital
,
.
the
And while you are
fact,
Earned
1933____.
many
mention.
might
1931,
show a'
year,
fail
1
—Per Share—
like Knudsen,
war—men
sufficient to
one
company
Year
been
ning the
the
profit.
.
have been drafted have been
"(1). Transactions licensed
der section 2A(2)
demand
profitable operations in
During the Great De¬
bad years.
'It isn't the New Dealers who.
have
service
maintain
running this war,' he
amended, Executive Order No.
said. 'I challenge any one to name
9193, section 5 (b) of the Trading
names and fix responsibilities. If I
With the Enemy Act, as amended
know anything about Washington
by the first War Powers Act, 1941,
it is that the business men who
relating to foreign funds control:
by,
Lighting Go.
(Continued from page 300)
and a "solid core" of replacement
,
of
The company's balance sheet as
the 1942 year-end revealed a
strong financial position, as has
been the case for a great many
years.
to
The ratio of current assets
liabilities
current
and
net
to 1
9.5
was
assets
current
—,
/
r
Commission"
"The
Said
Abraham
a
fraudulent
implied.
In¬
address before the
an
"
relation
the
to
the
of , the
amounted,
to $58.30 per share of capital stock.
Following is a condensed consoli¬
Both cases deal with the revo¬
"(b) Securities
or
evidences think—all by myself, of course,' dated balance sheet as of Dec. 31,
cation of broker-dealer registra¬ thereof issued in any other mem¬ he said at another point, 'that this
1942.
tions.
ber of the generally licensed trade sudden and great influx of men,
Assets
In No. 3450, the Securities and area, which are physically situ¬ who, while highly competent in Cash
; $812,925.
their own fields, were inexperi¬ U. S. Gov't Securities
1,147,000
Exchange Commission condemned ated in, and payable solely in the
Short Term Discount Notes.—
847,284
enced and untrained in and un¬
retail sales of oil royalty interests currency of, the country where is¬
Other Marketable Securities—
529,193
with
Government Accounts Receiv. (Less Res.)-.
at prices bearing no reasonable sued,
except securities or evi¬ sympathetic
765,469
2,009,164
relationship to the contemporane¬ dences thereof issued by a person procedures, was not as well ad¬ Inventories (lower cost or mkt.)
10,210
vised as it appeared to be.
Agents' Balances L.:—--—
ous wholesale price.
engaged in the business of offer¬
'The clankings, the screechings
ing, buying, selling, or otherwise
Total Current Assets—
"The Commission" set up the
$6,121,245"
or
badly oiled machinery, the Land,
Building,
Machinery,
r
following fiat, "the least required dealing or trading in securities or
etc., (Less Res.) —~—610,580:
clashings of one war
endeavor
evidences thereof issued by an¬
of the dealer being that, in the
Investments in Subsidiaries
1,000,200
against another may have at least Miscel. Assets.
other person.
.57,366'
absence of special circumstances,
somewhat been due to
the fact
he charge no more than a reason¬
(2). Definitions — The
term
$7,789,391
that new hands were undertaking
'member' of the generally licensed
able mark-up over the contem¬
Liabilities and Capital
work that they did not know too
trade area shall have tjie mean¬
poraneous wholesale price."
L-—: - $124,105much about.
Be this as it may, Accounts Payable—
Reserve for Taxes.--.
,519,878'
The position of "The Commis¬ ing prescribed in General License as I have already indicated, if the
No. 53, as amended.
Total Current Liabilities ._L_
war program has broken down at
$643,983
sion" was the same in No. 3451.
567,695
"(3). Transaction not author¬ any point, if it has failed to keep Reserve for Contingencies
There it held that "such prices
23,452
ized—This
general license shall the pace that had been hoped for, Miscel. Liabilities.
6,554,261
Capital Stock and Surplus
bore no reasonable relation to the not be deemed to authorize any
it hasn't been chargeable to the
"
$7,789,391
prevailing wholesale price for the transaction prohibited by any pro¬ brain trusters,-to the New Deal¬
vision
(or ruling or regulation ers, or to the bureaucrats.
royalties, as evidenced by his
Fixed assets as shown in the.
thereunder) of the Order other
'The thousands upon thousands above balance sheet are
costs."
written,
than section 2A (2).
of additional employees that have down from an
original book figure,
In both instances, the registrar
"RANDOLPH PAUL,
;
come to Washington since we un¬
of $3,735,695.
Company uses the
tion was revoked.
"Acting Secretary of the Treas¬ dertook to make this country an
invested capital option in calcu¬
Dealers in oil royalties face a
ury."
arsenal for democracy are not em¬
lating excess profits taxes and its
most acute problem which may
ployees taken from the established invested capital for tax purposes
agencies of the Government. The appears to be higher than the
involve their very right to con¬ Time Extended For
country ought to know that so drastically written-down balance
tinue in business,
Because of
Foreign Property Reports ; well that it ought not have to be sheet figure. Gross exemption ap¬
their speculative nature, substan¬
The Treasury Department an¬ told.
They were employees, from pears to be between $6 and $8 per
tial
mark-ups in
retail prices nounced on July 14 that all per¬ top executives to typists, brought share, giving a net exemption
sons subject to the jurisdiction of
to Washington from the private after
have been the rule, rather than
40% normal and surtax of
the
United
States,
who owned business and the civil life of the between $3.60 and $4.80 per share.
the exception.
The evidence of
country.' £
'/ '
property in a foreign country or
Although current earnings
these mark-ups are on file with
"The Secretary of the Interior,
who had an interest in such prop¬
\ (largely from war work) are:
the Securities and Exchange Com¬ erty on May 31, 1943, have been Petroleum Administrator for War
highly satisfactory, the combina¬
bear a reason¬
vailing
trip through
Mr.
Secretary
he took
Securities and Ex¬ interest in:
the most influential and busiest
change Commission has complete¬
"(a) Securities
or • evidences executives in this administration
ly abandoned the stratagem of in¬ thereof
physically
situated
in were never New Dealers. ' Nor are
sisting upon the observance of the Great Britain, Canada, Newfound¬ they now.'
prevailing market price rule.
'I have sometimes ventured to
land, or Bermuda;
i.e., where the
does not
Secretary
on
should be
program and not
war
bureaucrats,
July 20 in
or
affected, the
sale
able
that
us
by "The Com¬
on
and
3450
has
there
June 28, 1943, Nos.
which convinces
insofar as oil royalties are
mission,'"
does
dealer
two releases
been
no
was
decision
that
Since
that
tended
there
general investing public.
the
o n
con¬
acquired; and
were
That
3.
and
curities
price at which the securi¬
the
self-evident.
of the
which
the
obligation to disclose
no.
New Dealers
"July 19, 1943.
lar-a-year doorstep.
"General License No. 87—Under
defendant was un¬
*2. That the
securities. The
failures in the
terior Harold L. Ickes declared
as
"Treasury Department,
"Office
plaintiff
defendant;
and the
and
royalties
market
prevailing
existed between the
the
to
trusters,
or
Program
effort who
war
The
circular
sentation
relation
brain
drafted for the
in
the
"generally licensed trade few New Dealers left
Treasury Department Washington administration' and in
the
area."
interesting."
follows by Allan Sproul, Presi¬
Up to that time the strategy of the Securities and Exchange dent of the Federal Reserve Bank
Commission consisted hi asserting "that a statement by a dealer with
reasonable
men
"in a more than somewhat sarsituated in Great Britain,
Newfoundland, or Ber¬ castic luncheon speech in which
muda and of any other member he described himself 'one of the
the sale of oil royalties
respect to the price of a security carries
that that price bears ♦/
It's the business
blamed for any frictions
Canada,
be
some
Not Bureaucrats For FaiEasre In War
ically
Bar
said "watching the future tack
we
Commission' in its attempt to regulate
s
Department on
July 19 amended its foreign funds
control regulation so as to author¬
ize the acquisition by, or trans¬
Treasury
to, any person in the United' Sales Executives Club of New York at-the Hotel Roosevelt:'":
In reporting his remarks the New York "Sun" of
States of any interest in "securi¬
July 20 quoted
ties or evidences thereof" phys¬ 'Mr.- Ickes as follows:
'
•
——
.
EDWARD A. KOLE
Members of the New York
Securities Eased
fer
Wholesale Price"
By ABRAHAM M. METZ and
Thursday, July 22, 1943
Foreign Ickes Blames Business: Men Drafted For War Aid
Ban On Sale Of
The
^
in
its
*Hallgarten
brief amicus, filed in
vs.
Lee, which
the
involved
of
sale
"
oil
,
royalties
only:
"The
fraud
can
be
avoid¬
ed
only
—.
"
by
charging
price which
a
bears
rea¬
a
rela¬
sonable
tion
market
price,
by disclos¬
or
such
ing
will
the
a s
enable
an
informed
A. Kole
judgment
whether
he
will
complete
the
transaction."
"The
close
dealer's
omission
dis¬
to
the spread between market
price
and
spread
sale
is
price
when
that
unreasonable,
misleading
renders
fraudulent
the
and
representation, implied from his
holding himself out as a dealer in
securities, that he will deal fair¬
ly with his customers and charge
prices bearing some reasonable
relation
ket."
to
the
mission
Phasis
mar¬
forms.
pertinent
is
that the
em-
on
common
possessed
there
is
no
"prevailing
vised of the
prevailing mark-ups,
moveover, the forms 1G and 2G,
which are required to be
filed,
contain
that
Insofar
cerned,
information.
oil
royalties
believe
!
nrpvan
to prevail.
It
seems
,
_
that the Securities and
Exchange Commission has taken
,
nofice Gf
no
the
nassed
resolution
Eastwn
Dealers
Association
Rovaltv
Oil
limitina
its
ueaiers Association, limiting its
case
voice of
con¬
the
Se¬
experience,
that
was
itial
insistence
sion"
are
that
Exchange Commis¬
finally convinced of the
of
its
adherence
prevailing market
of
price
Hallgarten
Judge Fee
No
1, 1943 in which
report of ownership. Ad¬
to this effect, made avail¬
a
able by the Federal Reserve
not
upon
an
manifest
in
the
in¬
by "The Commis¬
the
there
vs.
to
the
prevailing
mar¬
ket price rule.
rule
by
Lee.
held:
confidential
relationship
*The
was
the
case
the
defendant
in
the
United
Court
for
the
writers
District
of Hallgarten vs. Lee
for
tried
of Chicago also state:
"The report must be
form TFR-500 provided
Bank
filed on
the own¬
ership or interest was not ac¬
quired after May 31, 1943.
If the
total value
less
than
be filed.
of such
property was
report need
With certain exceptions,
$10,000,
no
notably bonds payable in United
States
dollars,
a
report must be
filed regardless of amount. Forms
for filing may be obtained at any
Federal Reserve Bank
by
States
Southern
District of New York, during
the
and author concluded with the
as¬
sertion that the last brain trusters,
Dealers
New
have been
quickly
as
and
bureaucrats
trying to win the
as
war
possible."
tion
of
mand
or
branch.
substantial
its
for
de¬
deferred
products
im¬
and
proved buying power among the
railroads gives promise of an ex¬
cellent volume
ness
experience
and
was
futility
as
we
curities
1.
to file
extension of time from
to Nov.
vices
permitted
market price."
In its failure to ' members to "a gross profit of not
recognize this, the Securities and more than 33 and V3% of the
Exchange Commission erred.
If amount received in payment for
careful inquiry had been made
by such royalty."
In our opinion,
the Securities and Exchange Com¬
that
Association
represents
the
mission it could have been ad¬
the
an
31
of "The Commission" is
fn
I
by
every
specialist in oil royalties, that as
to royalty sales to the
investing
public
I
and
;c
knowledge
sion
given
Aug.
widespread if the present position
noted
"market price,"
"prevailing market price."
if
the
on
Disciplinary proceedings may be
:
is to be
It
prevailing
-
"
customer
make
to
..
in¬
formation
Edward
-
the
to
of post-war
busi¬
for this company. ;
Clothing Stock Looks Good
;
An
cular
interesting
on
descriptive
the firm believes offers
possibilities,
for
attractive
has
been
prepared
distribution by Simons, Lin-
burn &
Co., 25 Broad Street, New
City, members of the New
Stock Exchange.
Copies of
this
circular may be had from
Simons, Linburn & Co.. upon, re¬
quest.
York
York
Attractive
Situation
cir¬
Fashion Park, Inc., which
The current situation in North¬
east
Airlines, Inc., offers attractive
possibilities, according to a circu¬
lar prepared by Ward & Co., 120
Broadway, New York City. Copies
of this circular discussing the in¬
teresting
this
post-war
airline
may
prospects of
be had from
Ward & Co. upon request.
_
Attractive Growth Outlook
International
Industries,
Inc.,
manufacturers of Argus and Argo,flex Cameras, offersinteresting
possibilities for substantial growth
in the post-war period
according
to a circular being distributed
by
A. L. Stamm & Co., 120
Broadway,
New York City, members of the
New York Stock
Exchange. Copies
this interesting circular may be
April 1943 Term of Court, before,
of
Judge James Alger Fee.
had from the firm upon request.
Petrolite Looks Good
Mid-Year Bank Figures
Petrolite
'
Corporation,. Ltd., of¬
Study Now Available
fers
Meeds, 120
Broadway, New York City, mem¬
income, according to a memoran¬
Laird,
bers
Bissell
&
of the New York Stock Ex¬
change, have prepared an inter¬
esting analysis of bank stocks
revised
may
to
include
the
mid-year
of this analysis
be had from the firm upon
figures.
request.
interesting
dum issued by
Co.,
Inc.,
York City.
randum
Copies
may
be
120
,
possibilities
for*
Hill, Thompson &
Broadway,
Copies of this
discussing
the
had
request
upon
Hill, Thompson & Co.
■
New
memo¬
situation,
from
Volume
158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
;
DIVIDEND NOTICES
20lh
Halsey, Stuart & Go.
•
.
pi!
•
pi
Century-Fox
Preferred Offered
Offer Rail Bonds
iiiiiiliiiiiiiiiiiiiiiiliiiiiiiiiliiiiiiiiiMiiiiijiliiliiijiiib
$6,700,000 Gulf, Mo¬
collaterial trust
issue of
of 665,7 C5 shares of
Century - Fox
Film
Offering
Stuart & Co.. Inc. and
associates
are
offering today a
Halsey,
new
Twentieth
Series A. Maturing in
amounts annually each
July 1, from 1944 through 1953,
share July 19 by an
varying
one-half
share
per
Slock of
on
tember
of
Corporation
offered
at
subject to Interstate
Commission approval.
offered
are
payable Sep¬
record
being
are
yield from 1V&% to
3.60%, according to maturity, and
to
prices
Commerce
first
3%
August
coupon,
•
3%%
31, 1943.
maturities
six
The
15, 1943, to stock¬
holders
bonds
the
(37'/V)
the Common
this
declared
was
thirty-seven
cents
bear
the next three, a
and the final ma¬
coupon
turity has a 33/4% coupon.;
The bonds were
Checks will be mailed.
a
r
.
their bid
approxi¬
Halsey Stuart group on
100.1602, which is an
cost of 3.50% to the
of
mate interest
railroad;
Halsey, Stuart & Co.,
individual undertaking
r
TREASURER
Inc.
|i{
Philadelphia, Pa.
II
July 16. 1943
of
' '
•
"
-1."
■' \ •;
-
f
j
•
I
j
/
company
Series
these
HARVESTER
COMPANY
-
^
Quarterly
dividend No.
100 of one dollar
seventy-five cents "($1.75) per share on the
and
Ereferred stock,topayable September 1, 1943, has
declared
stockholders of record' at the
een
close of
August 5,
business
1943.
WHITE,
the right to bid
to be received by
from the sale of
A bonds, together
with $8,700,000
proceeds of a like
principal amount of 4% Series B
bonds due 1953, being taken by
Reconstruction
tion
Finance
evidence
to
a
Corpora¬
loan, and
ap¬
NATIONAL DISTILLERS
$3,440,000 treasury
applied to the re¬
demption on October 1, 1943 of
$9,437,000
Gulf,
Mobile
and
Northern RR. first mortgage 5V2%
PRODUCTS CORPORATION
and 5% bonds due 1950 and to the
SANFORD- B.
Secretary.
proximately
will
cash
be
at i- the
payment
has declared a regular
The Board of Directors
quarterly dividend of 5CHi per share on the out¬
standing Common Stock, payable on August 2,
1943 to stockholders of record on July 15, 1943,
The transfer books will not close.
r*
1
him 24; 1943
THOS. A. CLARK
;
~
:
-
-
treasurer
-
-
thereof
the
in
sinking fund
debentures dated
July 1, 1943 and due July 1, 1953,
was
made July 16 at a price of
underwriting
group
by an
by
headed
Co., and
McDonald-Coolidge & Co.;
Co., Blair & Co.,
Inc., Merrill Lynch, Pierce, Fenner & Beane, Kebbon, McCormick
& Co., Dean Witter & Co., Alex.Brown & Sons, Piper, Jaffray &
Hop wood,- The First
Cleveland
Corp., Kalman & Co., 'Inc., Mer¬
rill, Turben & Co., and Rogers &'
Co.,
Charles Clark &
4
780,000, held by the Reconstruc¬
tion Finance Corporation.
in the
total fixed
hands of the
$29,842,259,. while a
tabulation, giving ef¬
the 1 present
financing,
was
fect
to
places this
debt at $26,743,259,
of
The
$3,099,000.
a
of¬
fering circular indicates that this
financing will accomplish a re¬
duction of
pany's
$3,099,000 in the com¬
fixed * interest debt and
that upon
completion of this fin¬
ancing, annual interest charges on
fixed
all
interest debt to be
out¬
sold
of
by it and its subsidiaries at
Coplay
Lancaster,
Philadelphia,'
and
corporationthe cigars
The
Alientown,- Pa.Camden and
Perth Amboy,
keepsie, N. Y.
•
an<i
N. J.,
" '
,
'
'
„
Pough-
'
Inc.; First of Michigan Corp.; The
Robinson-Humphrey Co.; Central
Republic Co.; Hallgarten & Co.;
Dempsey-Detmer &
Co.;
F. S.
Yantis &
curities
Co., Inc.; Nashville Se¬
Co.;
Watkins.
Morrow
&
Merrill
naneing
capitalization
will
corporation
funded debt,
ital
be
-
as
1,
and
prior
the
follows:
6^%
common
'
according
the
There is little in the history of
Commission's record of reor¬
the
ganization procedure
indicate
to
calendar
of
the
the
year
corporation,
prospectus,
1942
an
was
for
$1,-
that would
contin¬
or
Nor
is there
in
any
; reorganization
mission
on
juris¬
cases
While ad¬
benefit of
5%
consolidated
earnings
of
after
to
deducting
the
full
?
net
cumulative
requirements
such
on
the
to
er
for
capitalization
of
Century-Fox
Film
what
081
efforts
shares
of
preferred
$1.50
stock
other
convertible
and
end
their
May of this
organization, therefore, most rail¬
road
men
consider that the recent
compromise
shares of open-end
May.
the St. Paul.
Island
or
this,
the fact that trading
also
and
open-end
Considering
job of it, too.
totaled
in
companies has
Wiesenberger
sizing the leverage
000
liabilities,
281 involving
involved
$6,076,-
compared
as
and
The
in the number
decrease
failures
in
from
June
place in all the
groups
the
of
May took
into which
divided
is
report
with
the
com¬
mercial service group which had
a
large amount of liabilities in¬
When the amount of lia¬
volved.
failures
last
39, involving
liabilities,
compared
May with $826,000 lia¬
with 48 in
Wholesale
bilities.
That is his clear-
cut presentation
of their manage¬
records—in the aggregate,
ment
by individual types, and company
In this comparison
open-end
companies
more
the
than hold their
But
important
viewpoint,
he
shows that all three types of in¬
perhaps
vestment
more
broad
the
companies
have
aver¬
management records which
favorably with the per¬
formance
of the
market
itself.
age
failures
de¬
in
May.
section
trade
•.
$308,000
In
the
to
retail
insolvencies
de¬
to
rose
$2,334,000 from
failures
31
numbered
with 35 with
$267,000 liabilities in
May. Commercial service failures
numbered 31 in June as compared
with 19 in May and liabilities in¬
creased to
$1,600,000 in June from
$393,000 in May..
country
into
Federal
Reserve
is
is
divided
Districts
that the Boston,
seen
it
New York,
Louis and Minne¬
Federal
apolis
had
in
Reserve
districts
in June
fewer, failures
than
May and the Atlanta Reserve
had
the
of
the
failures.
the
June
number,
remaining
dis¬
number
of
When the amount of lia¬
is
Cleveland
Reserve
smaller
same
greater
involved
bilities
apolis
a
amount
than
in
considered
and
districts
of
May.
period
same
companies
on
the
average;
companies
the
off
were
leverage
only
20%
non-leverage
12%;
up
were
and
the open-end companies showed
net gain of 25%!
a
These
figures represent only a.
minute
of
sample
Mr.
presentation.
berger's
Wiesen¬
they
statement
But
his
own
"The. summary of manage¬
emphasize
that,
ment results
.
.
and the specific
.
conclusively
detailed results
that management of lead¬
investment
companies
has
better than
general stock
prove
ing
been
movements."
market
asset
Net
f;,-
of
value
Fund
Balanced
Howard
.
Balanced Fund
Howard
&
Eaton &
on June
1943, was $5,656,224, equal to
$19.96 for each! of the 283,290
shares
outstanding.
This com¬
30,
cluding 11.32% in short and me¬
dium
term U. S.
Governments;
the
52
Stock Average
being adjusted for
Composite
figures
(all
dividends paid).
actual
pares
on
Dec.
30.59%
third succes¬
Eaton
& Howard
Net
the
sive year
companies has bettered the per¬
formance of the general market.
Going back to 1926 and taking
the
leading companies on which
data
are
available, Mr. Wiesen¬
berger shows that in 12 out
the
17
past
years
of
invested in preferred
was
stocks, 26.82% in common stocks,
and 4.27% was uninvested.
that the average per¬
formance
of
the
investment
This makes
asset
Stock Fund
Howard Stock
Fund
1943, was $666,719,
for each of
standing.
of
value
on
Eaton &
June 30,
equal to $12.02
the 55,438 sahares out¬
This compares with net
$523,618 on Dec. 31, 1942,
assets of
equal to $9.76 on
the average
53,624 shares.
field
company
Minne¬
had
liabilities
a
in
superior to
was
the action of the market.
manual
The
even
Cleveland, St.
this
performance of the investment
'
the
When
york
appreciation of 16% as compared
a gain of 15%
for the Dow-
Jones
example,
for
year,
with
$125,000
Incorporated
63 wall street—new
companies included in his general
review showed an average asset
Last
creased to 15 from 23 and liabili¬
from
GROUP#
with net assets of $4,027,924
31, 1942, equal to $16.31
on 246,954 shares.
On June 30, 1943, 38.32% of the
Fund was invested in bonds—in¬
ties
involved,
nT DISTRIBUTORS
Eaton
own.
compare
amounted to
month
$1,441,000
that
companies.
from
of the wholesale group.
Manufacturing
contribution, however,
helps all three types
big
one
of
empha¬
and non-lev¬
closed-end companies.
His
is
for
blamed
be
to
by company.
the
of
exception
single
difficulties, Mr.
not
erage
with
$2,550,000 in May
with 804 involving $9,906,000 in June 1942.
1943
plan has much less only
official approval
own
Request
on
with
actively telling
story and doing a good
cording to Dun & Bradstreet, Inc.,
all
re¬
com¬
are
is
and
Prospectus
to the open-
the
However,
Group Securities. Inc.
com¬
"mutual"
its
265
A Class of
constructive
Business insolvencies in June, ac¬
had
furthering
most
concerned
directly
companies
and June of last year but the
of liabilities involved in¬
tricts
towards
like
financial
so-called
or
them.
declined
amount
while
probably be allowed to utilize
been
but
the
Shares
from
has
genuinely
most
over
hear,
General Bond
panies is somewhat less than might
have been desired by those of us
June Decline
sharply in June
it
merely,
The space devoted
Business failures h
in number from both
sta¬
munity, it has been well repaid.
1,742,000
shares of no-par common stock.
business failures
up-to-
found any¬
Nor
love
in
one
great¬
company
be
can
of
we
in
a
pertinent,
else.
labor
a
Corp. consists of 100,000 shares of
$4.50 prior preferred stock, 905,-
creased
of
investment
where
Outstanding
Twentieth
edition
annual
Wiesen¬
Mr.
assembled
tistics than
will
cash
has
array
date
such year.
June
itself,
large, attractive volume
dividend
stock
third
of
independently
field
berger
amount equal
an
this
examined
have
We
Wiesenberger's
Working
an
equal
District
chance of getting
the
retirement fund
Securities."
Mr.
manual with admiration, but also with a
feeling akin to gratitude for his conclusive work in vindicating the
investment company field.
^—
The $1.50 preferred is
entitled to
mitting that the Missouri Pacific
than has either the Rock
$842,573.
indica¬
supportable." capital
structures too* drastic.;
388,353; 1941, $1,455,677; 1940, $1,-
$820,86i and 1938.
also
as
up
consider- the opinions of the Com¬
209.488:
1939,
demption.
inclination to increase
either fixed
debt,
diction
its
income
Their
of
with $577,000 liabilities compared
or
St. Paul groups.
tion that the courts having
\
stock.
Net
late, we hope, to pay our respects to Mr. Arthur
Wiesenberger and his associates for the splendid job they have done
in publishing their
1943 edition of "Investment Companies and
of
preferred, and
is callable on 45 days' notice at
$35
and accrued dividends. Con¬
struction
(Continued from page 301)
by either the Rock Island
funded
1953;.'cap¬
of
It is not too
$756,000 the previous month. Con¬
upon
of
preferred stock
250,000 ' shares
Railroad Securiiiss
sound.
stock, 38,162 shares of
Cumulative
share
liabilities
the
its
$7,000,000 3 Vi% de¬
due July
bentures
of
outstanding
the
and
debt
on
clined to 147 from 156 in May but
fi- gent, v that it originally set
■
Upon; completion
stock
bilities involved is considered, the
members of the offering
reverse is true, all groups record¬
in
addition
to
Halsey,
ing an increase with the exception
Stuart & Co., Inc. are: Otis & Co.*
Consolidated Cigar
Corp.'s principal brands include
"El Producto",. "Dutch Masters".
"Harvester",
"La
Palina". and
all
Investment Trusts
is
stock
common
Other
in the country,
brands.
preferred
sroup
Lynch, Pierce, FenTracy, Inc.
ner & Beane; Blair, Bonner & Co.;
One of the largest cigar manu¬
Shropshire
&
Co.;
and
Sills,
facturing and selling companies Troxell &
Minton, Incorporated.
other
each
year
As of April 30, 1943,
Co.;
manufactures
$1.50
LOS ANGELES
JERSEY CITY
CHICAGO
of
interest
Dillon &
in¬
standing,
including
annual
net
cluding Kidder, Peabody & Co., fixed lease
rental, will not ex¬
The First Boston Corp., Blyth &
ceed
$1,085,179, a reduction of
Co,. Inc., Lehman Brothers, E. H. about
$332,000.
Rollins
&
Sons, Inc., Riter"! &
Eastman,
63 Wall Street, New York
National
the basis of 1% shares of common
company's 4% note due 1950
principal amount of $8,-
decrease
Offering of $7,000,000 Consoli¬
Cigar Corp. 10-year 3Y4%
dated
and accrued, interest,
amount
Dro-forma
Debentures Offered
101%
The
convertible into
the
public
Cigar Corp.
face
accrued
and
interest debt
Consol
by
represent
annual
/: The proceeds
-
the
INTERNATIONAL
for the
3.75%
than
more
higher price.
a
|
K
not
issue, reserving
'y/'
1
,
INCORPORATED
were
Bank
approximately
73% of the 905,081 shares issued
and outstanding as
of July 13,
1943. The corporation will not re¬
ceive any proceeds from the sale.
and
Chase
Lord, Abbett & Co.
were
had
MAKERS OF PHILLIES
'
owned
books
the
shares offered
The
'
previously agreed to bid a versions can be made up to with¬
in five days of the date of re¬
price to produce an interest cost
v
H
jjjlt
an
as
and
closed.
for
request
(no
scribed
awarded to the
on
conv.
stock
bonds,
and
Prospectus
AMERICAN
cumuL preferred
par)
at
$33.50
a
underwriting
group
of 122
investment firms
headed by Lehman Brothers and
Blyth & Co., Inc., was oversub¬
Corp. $1.50
bile and Ohio RR.
A dividend of
323
mediocre
have
brief
and
that
results
points out that
managements can
periods
of good luck
long-term management
therefore of greater
are
significance to investors. In this
connection, the figures presented
will no doubt be startling to the
who still have a poor, if
uninformed, opinion of invest¬
many
ment
company
management
re¬
sults.
the period
inclusive, the
Dow-Jones Composite Average,
For
example.
In
from 1930 to 1942,
adjusted
tered
a
for dividends, regis¬
net decline of 40%. In
Prospectus may be
from
The
obtained
authorized dealers, or
PARKER
ONE COURT
CORPORATION
ST., BOSTON
nWivhWl^*'^ «M**M AM
iWuMf4
ww»nlw.w.i
»«*<.
THE COMMERCIAL & FINANCIAL CHRONICLE
324
Assessed valuations for 1943 in
Municipal News & Notes
vn
other counties follows:
•County ;
.
In
addition^ to. the tremendous
bonded debt reduction, Controller
from- Maryland's two
toll bridges have dropped below
the amounts estimated by traffic
Receipts
-
Marlowe
in the three years
have
tures
ably
that the struc¬
operation, it
of June 30 amounted to
but
Commission,
showed,
according
report, that the Potomac and
Susquehanna river bridges are
now
returning only about twothirds the revenue they did be¬
retire
sum
:;7-777
since January* 1
Mercer
bonds.
'
;
The decline in revenue
■■
Susquehanna
the
over
While revenue
-
and
No
.
on
revenue
;
.
none
that
are
city
the
last
notes
short-term
and
of this year only
21,000 1 vehicles ' utilized'.:;'.' the
bridges, as compared with the 41,-
at
year
this
mid-year
7-• y• ■"77.". 1
commission is prepared to
•
that
the
\
-
*
.
step would be
of present re-
possible
a
relaxation
maturity,
funds and a
000.
,
bond
7777
.
had
He
'
■
Gasoline taxes
7
,
no
' "
*
;;
Casualty
boons
for state revenues,
of Tax Adminis¬
Federation
particularly serious in
those States relying heavily up¬
them
for
in
tax rev¬
gas
for special purposes such
retirement of debts.
In calendar year
gasoline
11%
and
revenues
States designating
from
below
1940,-
77-7.77
1942
taxes
1941
revenues
decreased
.8% below
and
January,-
March
Local Valuations
Based
on
the
February
decreases this
over
last year
and
below
year
Gasoline
slipping
of
crease
$166,682,312 from those
for 1941.
2%
tax
slight in¬
March,
V ;
>
-
yields; began
March, 1942,
early
as
were
above
as
but the downward trend
somewhat
was re¬
during
months.
summer
the
collec¬
Total
tions for the calendar year
1942,
excluding Arkansas, Idaho and
Pennsylvania,
$819,000,000,
V
11%
amounted
drop
a
to
almost
of
below totals for calendar
assessed value
The
which thus
of personal
Nation-wide
u
reserves.
.
C
7''- 7777
'/
:
I
the bridges operations $626,000
worth of bonds were bought,
coincident with the maturing of
a
y
!
$5,224,000
sued,
=
of
lot of $150,000, so that of $6,000,000 in bonds originally is-
77
•
are
sonal
77:-7
During the first two years
V
•
:
now
out-
property valuations valua¬
in
the -county
rose' from
estate valuations fell from $861,-
standing, the report added.
866,245 to $731,107,918 and per¬
1
New Haven,
On
other
the
assessments
sonal
Conn., Bonded 1
In 11 Years
from
rose
$115,614,696 to $156,418,556. The
Debt Cut 52%
Hudson
County
personal
prop¬
various
forms
18
in
collections
states.
from
Haven has
during
greater if the registered offices
from the
of many large
year
of the administra¬
of Mayor John W. Murphy,
not been transferred to municL
slashed a total of
$10,132,888.53, with a consequent
reduction of interest costs to tax¬
imposing smaller burdens upon
tilled spirits tax revenues and also
in
those
from
beer
and
wine
corporations.
which have
of
the
been
tion
City
of
New
reduced almost 52%
11
the
indebtedness
bonded
having
payers
years
palities
been
Hunterdon
that now exceeds $500,000.
Controller
Cecil
sonal
J., Marlowe
of June 30
net bonded debt
;
dropped
of the city
net
'
$19,620,204.41.
reduction
for
Thus,
the
11-year
-
County
was
the big
Its per¬
valuations
rose
The rise in corporation
lowers
taxes
the
tax
rate
of
municipalities, particularly Flem-
' ington,
which was made regis¬
principal offices of many
large companies transferring from
Jersey City.
tered
the
period has been $10,132,88.58.
;
property
591,550.
Murphy ad¬
ministration first came to power,
was
rates,
$59,897,504 to $211,724,121,
while real
property values re¬
mained almost stationary at $25,-
to
31, 1932, when the
tax
from
$9,487,315.83,
the lowest figure in two decades.
The net indebtedness as of Dec.
had
lower
gainer by these transfers.
has revealed that as
the
with
corporations had
j
or
■
-
.
The
high collections a
and April
very
March
before.
again showed
increase in
an
never
dis¬
counties
„
A
review
;
states
on
shows
a
calendar
revenues
beverage
taxes
$166,000,000
000,000
in
trend
in
1941
year
from
and
39
basis
alcoholic
increased
1940
in
to
to
from
$196,-
$237,-
.000,000 in 1942.;
All
over
the
CQuntry increased
ered
the
would
it
county.
be
is
the
county affairs.
been
since
in
to
public
it
say,
in
on
by
interests appear mean
paltry indeed.
no
; But
they
are
to be brushed aside.
means
County advertising makes a juicy
tidbit and local papers that would
stand to lose such a pleasant mor¬
sel by a proposed consolidation
liave been, known to oppose vigor¬
rings for the purpose/ There are
other vested interests.'
Finally,
there is the obstacle posed by the
god of things as they are, "Why
bother, haven't we been getting
along all f ight' without ,any of
these new-fangled changes?" 77.
annually
1907,
of
but
such
by the
the first
data
September,
units undermining the power and
prestige of the county. There are
145,688 local units in addition to
counties, cities and villages. The
of many of these units
could be more efficiently admin¬
istered along county lines.
functions
County data have
collected
made
accurate
more
letting
Bureau
Or, perhaps
were
.
With,
1942,
The Business
the report on finances of Twentynine Selected Counties for 1949,
and
in
December,
1942,
with
a
| Man's Bookshelf
preliminary report on 1941 data.
The final report, Financial Statis¬
tics of Counties: 1941, appeared in
May, 1943.
Dr.
1
Wylie
.
the
transfer
the
of
State
depression
county
has
the
nor
functions
reduced
the
ty
as
Cloth
>
cal
to
in
assist
functions, the county is assuming a major role in the ad-
:
r
,!
one-fifth of all
from
i.
taxation.
its
Instrumen¬
Boston^ Cor¬
first
.
States
United
the
and
i
the
v.'1
'*Ji 0
:
War
■
'
A-
in
Workers
of Part-Time
The—Industrial
Effort,
Section, Department of
Economics and Social Institutions,Relations
local rev-> Princeton
property
date
:
poration, - -100 > -Broadway, . New
York. City—Paper..^ ;.';
Use
taxes of $837 million
/ property
enue
»
-County
...
--v
Securities of
talities—The
-
of welfare, health, r
roads, and schools.
(publication
—
Govermnent
financing ;
local
ministration
Frank
Company,
Avenue, New York City—
$2.50
July 20).
• v
fi¬
In States employing fis-
aid
—
to
instrument of govern¬
an
Consequen¬
Totalitarianism
60 Fifth
nancial importance of the coun¬
ment.
The—Eco¬
Social
Munk—The Macmillan
Census report, points out
that "Neither the repressive ef¬
of
Nazism,
of
and
of
ces
Kilpatrick, author
of the
fect
Legacy
nomic
'
,
Princeton,*
University,
N. J.—Paper—$1.00.
More than one-third of all fiscal
aid
to
local
government
$627 million of the total $1,794
million
of
units." v
fiscal
>
aid
Chapter: XI
,
local
to
forthcoming
the
of
a
De-Nourse—•
Washing¬
In
"Price-Making
book
Edwin
G.
Brookings Institution,
mocracy
J v'
;
Price Policy,
of
Criteria
Basic
was
paid to counties, which received
*
—
Nevertheless, the importance of ton, D. C.—paper—25c.
the county as a revenue producer
is
declining.
International
County property tax
declined nearly 10% from
1932 to 1941.
County gross debt
decreased almost 20%.
Assessed
valuations
let
There
shrank
14%.
3,050 counties in the
They employ 336,They spend $1,777,which they
collect
in
property
taxes.
are
United States.
000 persons.
000.000,
of
Most
the
of
remainder
from Federal
Their
comes
a
Warner F. Brook,
Syn¬
For
a
Democracy—■
Ph.D.—Pamph¬
Distributing Co., 313 West 35th
Street, New York 1, N. Y—paper
\
•■•/VVv.';
—25c.
.
Monsanto Plastics, A. Guide for
Product
Designers
Monsanto
Louis, Mo.
—
Chemical Company, St.
—paper.
State aid.
and
Planned
Post-War
.
In
Policy
Era—Cartellization
thetic
levies
principal
functions are
War
Strategy' and ■> Post-War
welfare, health,
Problems—Industrial 4
Relations
roads/ and schools.
Where there
are
overlapping local units some Section, California: Institute of
Pasadena,
Calif.—'
of these functions may be. admin¬ Technology,
administration of
by
county is
begin
with, there
too many
of them. * We
get along
nicely • with 2,100 counties, sug¬
gests Professor William Anderson
in
are
could
Units
The
Government
of
in
the United States.
/
political
most
scientists would agree with Pro¬
fessor
Anderson
that
too many counties.
have
ous
so
and
we
have
Why do we
There
many?
reasons.
interests
inertia
vari¬
vested
are
Tradition,
are
some
coldblooded
political scientists should decide
that the neighboring counties of
of them.
Suppose
revenues
Bullfinch and SmUhdale should
be consolidated. Would the new
unit
paper.
;'■>
/; >
•
an
show
from alcoholic beverages
increasing total consump¬
tion of them. According to a study
by the Illinois Liquor Commis¬
and
government i!s the'
multiplicity of other local
777
/...
Probably
the
of
Beside such lofty considerations
the vested
excessive number of counties
in the local
;
.
slackened their
upward climb.
to
following report,.:; recently i
( Perhaps & an > even, - greater', ob¬
issued by the Tax
Institute, Phila¬ stacle to county efficiency than
delphia,
discusses
the
role
of
the
istered
distilled
erty increase would have been
net
The
77 -
,
other
units.
The
essential part of our
spirits rose 16.5%. in calendar 1941. governmental
structure, but gen¬
and 24.3% in calendar 1942, but
erally* speaking it is not a unit
January
and
February,
1943, to which we point with pride. To
Tax
showed declines of 15.1 and 14.3%
v
;■
Government Discussed
'■ "'i'?■ $837,000,000
30%V'.v-
hand, taxes on
$238,236,018 to $253,647,549, an in¬ alcoholic beverages have produced
crease of $15,411,531.
steadily increasing yields through¬
out the
country the last three
Adjustments by the new Hud¬
years. This holds true also of rev¬
son
County Tax Board are re¬
'
enue or "profit" trends from state
flected to some extent in re¬
liquor monopolies
operating in
turns from that county.
Real
tions
to¬
levy
probably
'
1941.
rationing showed
is
up
approximately its effects upon gasoline tax reve¬
must be held in hand total some¬ property
nues for the first time in January,
$234,000,000/ rising from $776,thing in excess of $550,000.
This is nearly offset by 1943, with the decrease below
77" Mr. Codd asserted that the State 268,659.
1942/
amounting
to
7 Roads Commission would be in a a decline in- real estate l values January,
from $4,571,228,410.
34.2%. In March, 1943, one year
considerably
stronger
position
Real estate valuations in Essex after the first tendency toward a
financially had it not been re¬
decrease
was
noticed,
gasoline
quired, by the terms under which County declined from $1,126,084,47
states yielded only
861 in 1942 to $1,116,649,586 this taxes in
the bonds were floated, to purPer¬ $41,400,000, a decrease of almost
£ chase bonds with any excess cash year, a drop of $9,435,275.
The combined sums
will
County Role In Local
were
tarded
The
is $4,307,534.
with
States
1941, in each case.
1942 assessments showed a net de¬
'7/
only
creases—about
returns from 21 coun¬
falready having
publications
Declines in gasoline tax rev-C
enues are
year
31
I'. The Census Bureau has discov?.:
the outstand¬
are
beverages and tobacco have
enues
the
field:
ing war casualty in the State tax
family, but taxes on both alco¬
This consists of
$4,438,488,252 in real estate and
$1,010,265,738 in personal prop¬
erty," The increase in the total
current
operating
"cushion" of $250,-
v-;
information.
State Tax War
$5,448,753,990.
for maintaining at
all times a cash reserve equal to
the two succeeding interest payquirements
ments, the next scheduled
Last
appeared
it developed all he wanted
complaint.
ty tax boards, the value of "real
estate and personal property as¬
sessed in New Jersey for 1943 was
pointed out, however,
was
obsolete.
person
one
as
Show Increase
.
It
only
proven
pro¬
uncer¬
The hearings have be¬
almost
a
New Jersey
drop too sharply, but it
discuss what form
changes might take. 7 *;;7 h
the
7
show Tennessee and Kansas
is not ready to
v
them,
holic
more
are
about state revenues
in
ously any such mergers, utilizing
general continues^ other states be-, of
course any-convenierit red her¬
taxes
was
a
if the
or
tainty
bacco
a
debt /reduction.
budgets with
sulting have
the financial setup under
which the bridges are operated if
7-7..
department
sides
on
revamp
■
Commissioner
Balanced corresponding
months
of
1942
cash surplus re¬ amounted to 34.2, 38 and 29.5%,
also been* a con¬ indicating steeply declining rev¬
enues. [
tributory factor.
;
Figures from 45 States
the
which crossed them on those
revenues
Tax
should show
sources
nounced decrease
hearing July 27
year
may
of pre-payment
because
July 2, 3, 4 and 5
The
33,947,484
whose
come
1942, just as there
in 1941, and early in¬
of taxes
by many of the city's largest
property holders, together with
the increase in the grand list and
:^
443,270,450
8,194,473
consump¬
7 A similar upward trend is an¬
ticipated in tobacco tax revenues,
and if revenues from other
major
the valuations fixed in each
bonds of any type were
1941
days a:year ago.
28,616,051
canita
per-
there will be
the
over-all
from the two bridges. On
in
decrease
continued
000
of $8,-
Roads officials anticipate
State
a
59,098,561
67,319,688
State
as
1941.
*
30,156,928
8,640,563
4,321,712
Kelly,
again be able to avoid long-term
borrowing in 1943.
New Haven
was also able to avoid borrowing
May,
in
collected
$13,000
17,220,407
____
highest
tion of wine and Michigan led in
beer consumption.
7.7;77 •
handles the returns, announced
during
dications
for example, totaled
$17,000, as opposed to
nearly
new
were
May,
ing
the
million dollars more
last year's margin
issued
the bridge dur¬
Income from
•7*
-
326,892 253
trator found in its study.
'
slightly, Mr. Codd reported.
during
time
any
367,746.25.
increased
have
bridge-
river
over a
than
41,855,247
increased borrow¬
an
largest.: of
collections
toll
S
city
109,743,221
;,7 Gasoline Taxes
Outstanding
gives
also
slicing
consumption while California had
to
Mayor Murphy's terms of office
the Susque¬
on
debt
spirits
the
—
and
distilled
in
167,468,605
Warren
ing margin of $9,685,817.07, the
bridge has declined,
on
the Potomac
river
hanna
the
i
Grace.
In
May,■< 1941, tolls - collected there
totaled over $67,000.
Last May
they amounted to only $34,000..
de
Havre
at
bridge
77
in 1932. 7
This
in
required
make local orators impassioned.
led
170,733,717
.
Union
steady reduction
over the past
were
Columbia
38,661,229
Salem
Sussex
county seats would retain their
customary prestige?
These
weighty matters calculated
4,137,617
:
Somerset
on
alco¬
202,838,503
_______
Passaic
by $671,755.11, :
of
13,853,472
Ocean
debt
taxpayers
pay
has re¬
sulted from the sharp decrease
traffic
the
consumption
beverages as a whole was
highest in Nevada; the District of
15,434,502
Morris
V
capita
38,284,160'
r>
Monmouth
11 years,
7 :';;:;7
49,388,962
Per
holic
31,713,781
Middlesex
interest charges for 1943
will be $389,376.25, or $504,144.33
ating expenses and amortize the ; less than the $893,520.58 which
^
42,900,599
7,553,075
____
county.
Because of the
in the bonded
48,008,933
____
Gloucester
for the end of the year,
$47,044, or $2,000 less than the
$49,166 estimated as necessary
during this year to meet oper¬
53,724,983
219.389.426
3,493,654
9,301,708
May
Cumberland
and will be further reduced be-
Mr. Codd revealed,
the average monthly
revenue ;
from the two bridges
totaled
year,
7,827,471
39,534,985
Camden
bonded;
net
428,199,106
also
figures
the
that
is
62,813,223
Burlington
Cape
indebtedness has been decreased
five months of
first
the
For
controller's
revealed
gasoline rationing.
$9,987,000j
of the bonds,
some
The
as
sinking fund to
the
in
this
of
$499,684.17
available
to
this
its
'
bonds outstanding
The total
Chief Auditor of the State Roads
fore
keep within
to
national emergency.
forseen
itulation
*
able
be
budget this year, barring any un-
in
been
reported on July 9. A recap¬
by William A. Codd,
was
the city will prob¬
in effect
now
system
control
budget
present
engineers as being a fair average
monthly income for the first time
the
with
that
stated
.
Realty
$10,169,792 $108,906,169
Bergen
capita consumption of
ing that name or would it carry
on the up-and-coming
beverages increased
spirit of
12.9% during calendar 1942 over
Smithdale through
its name?
1941 throughout the United States.
/ Which of the courthouses and
per
alcoholic
Personalty
Atlantic
sion,
Thursday, July 22, 1943
nerpetuate
the
grand
old
traditions of Bullfinch by bear¬
SEC Acts
"
Against Two 7
Securities
The
and
Exchange
the
revoked
Commission
has
dealer-broker,
registration of Pat¬
rick H.
McClellan who
had been
permanently enjoined by the New
York
Supreme Court from • en¬
gaging in. the sale of securities,
»
Registration of William R. Car¬
another Syracuse dealer, was
ver,
suspended by the Commission in
view
the
of
an
injunction issued by
York
.New
pending
final
whether
or
should be
Supreme
Court,
determination
not
his
of
registration
revoked/which will be
when he appears
for
a
hearing
or
notice of such hearing is received
by
him,
been
the
Commission having
unable- to
contact him.-
- • -
<
ti*vlito-,IJift*W»V^-ii:
mwpww*
Volume 158
SN*UJWJH
^^Ha«iW*W(l«wWi tHiVtVHiMj At
A^M,
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
Gov.-ReguBated, FinasiGed Aviation Proposed
Treasury Still Opposed
In Bill Idle Considered bp Congress
To Retail Sales Tax
What
termed
is
legislation
embodied
is
by its sponsors as the most far-reaching
conceived in the 40 years of American aeronautics,
ever
in
proposal for Government-regulated and financed
aviation drawn up in Congress for action in the Fall. The bill said
the Associated Press, in Washington advices July 15 has been drafted
in the House Interstate and Foreign Commerce Committee and copies
a
circulating among aviation ln-^
The Commission would have
suggestions.
The ad¬
vices from which - we quote, as authority to determine what are
given in the New York "Sun" also the interests of American sky
lanes and where and how they
had the following to say:
will operate, along with the right
"Its
backers, thinking of air
to make payments to air carriers
travel in the nation and along the
to enable them to promote the
international v skyways
believe
This applies to
their measure is necessary to keep public interests.
both domestic and international
the United States in step with the
air transportation.
On the do¬
post-war world;
"'v/'v"'O'.'
are
Treasury officials said
14 that
"The bill would transform the
Civil Aeronautics Authority into
the Civil Aeronautics Commission
in¬
with
completely independent
sweeping powers for
a
status'and
.
•
the promotion, regulation and
investigation of American: aviation:
"The
sion
first
would
job of the commis¬
make
to
be
a
com¬
plete investigation and to report
to Congress on all phases of de¬
velopments in air commerce and
air navigation which may be an¬
ticipated for the post-war period.
is
It
intention
the
that
Con¬
then would provide the cash
whereby
any
deficiences
and
needs of the industry could be
remedied. ■;v-k'r
gress
such
side
mestic
-.
payments are
scheduled to be for experimental
only, but in the interna¬
field they are unlimited,
purposes
tional
wartime
extension
the
If
tated.
dic¬
not
was
the Commission
could make up the deficit. ■
"A
permanent
program
for
training civilian aviation person¬
self-supporting,
In
#
be
,
ber
10%
a
tax and
tax
sales
a
If you contemplate making, additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
-
NEW
YORK, N. Y.—Earl J.
is now with Amott,
& Co., Incorporated, 150
,
Life Assurance Co. of Canada,
has
J.
become connected with Robert
Baker
Phillips & Co., 141 West Jackson
Boulevard, Chicago, 111.
,-
NEW YORK, N.
Lewis
Maguire,
Y.—Harold V.
Schifreen
and
Willis A. Snyder have joined the
Horner Co.,
of R. M.
staff
sales
30 Broad Street.
CHICAGO, 111.—John D. Stillhas become associated with
well
Company, 209
South La Salle Street.
Mr. StillCentral
well
(Special
to The Financial Chronicle)
BLOOMINGTON,
I *
is
Janvier Wetzel
with
,
was
associated
now
before
Congress adjourned for a
vacation, said he would
support a sales tax 'only as a last
resort.'
.-kkk'-:
summer
.
-
"Treasury officials did not dis¬
today
take
Co., Dempsey-Detmer
Co. and Alfred O'Gara & Co.
&
;*
1
'
^
•
(Special
is
to The
ILL. —George
R.
connected with Blyth
CHICAGO,
ft Rice is
&
)
now
Co., Inc.,
Street.
with
and
A.
135
Financial Chronicle)
affiliated with Goodbody &
Fahnestock
Co.
&
S.
and
B.
Chapin & Co.
(Special to
In the past Mr. Rice was
C. Allyn and Company
& Co. for a
Grime,
of
staff
the
to
Kidder, Peabody & Co., 135 South
of years.
to
Financial
CHICAGO, ILL.—Ralph D. Hollowell has become affiliated with
The First Boston Corp., 231 South
Bagley
is
Hollowell
Pierce,
Fenner
Salle
Mr.
Street.
The
Chronicle)
N.
Ga.—Ralph
COLUMBUS,
Lynch,
Merrill
with
&
101
Beane,
with Daniel F. Twelfth Street.
Rice & Co. and the White-Phillips
was
previously
Corporation.
fSnecln]
CHICAGO, ILL.—William Conan
to
The
Financial
Chronicle)
CITY,
Mo.—L. A.
joined the staff of Goffe
Carkener, Inc., Board of Trade
Elsea has
&
(Special
(Special to The Financial Chronicle)
linglaw, Crowder & Co., Inc., 120
South La Salle Street.
Mr. Graff
with
Internal
the
Revenue Department.
(Special to The Financial Chronicle)
Frank
Oglar has been added to the
C.
staff
of
Otis
Tower.
LOS
The
Financial
OHIO
&
Co.,
■
to The
KANSAS
Lytal is
now
—
Terminal
.'"v ;":-f
Financial
CITY,
Chronicle)
MO.
—
J. A. Hogle & Co., 507 West Sixth
Street.
already
have
(Special to The Financial Chronicle)
,
.
OAKLAND,
Calif.—Lester II.
Strong has become affiliated with
John B. Knox & Co., Central Bank
Building.
•.'
.
.;
in¬
bility
of'imposing the excess
profits tax principle to individual
incomes.
'
ing.
PORTLAND,
has
Ore.—Lilian
been
staff of Camp &
added
to
used
as now
individuals
incomes would
larger share of the war's
*
,
,
E.
the
Chronicle)
QUINCY,, ILL, — Clarence F.
Crossley, formerly with the Sun
the
and
war
has
caused
little appeal for this type of space.
carrying
way,
significance of
be
can
merchandise
for
and women.
The
comes
this
move
the forerunner of other de¬
partment
stores
also
tion.
sec-
-k,,kk::'
;
A Fountain of Interest
Among press comments on the
John Wanamaker lease, the "Wall
Street Journal" said:
"It might be followed by other
It also suggests that
merchants.
other retailers recognize that con¬
ditions in lower Broadway busi¬
have
changed definitely for
the better
The
"
"World-Telegram" said in
part: kT
"Because
financial
store
rentals
in
the
district
during the last
ten years have sagged, both as to
occupancy and rentable rates, the
selection
of
by
notable Broadway
long-established de¬
a
a
caused
store
is regarded as
Market improvement
'big news.'
in the business
change,
of the
together
with
Stock Ex¬
improved
of the big office build¬
in the financial sector has
a great increase in pedes¬
trian
M. Woods,
trustees under inden¬
ture of trust of June
30, 1943, be¬
came
general partners in A. G.
Edwards & Sons, St. Louis, on June
Mr. Edwards
previously
limited partner in the firm as
trustee
was
under indenture
of
trust.
retired
from
Albert
N.
limited
partnership in the firm
same
Edwards
on
date.
of
the
late
traffic
tween
The New York Stock Exchange
has
announced
the
following
Louis
S.
along Broadway be¬
Fulton
and
Wall
Streets.
This, it is said, was a factor that
prompted the department store to
as
Elect To
At
a
'
Transfer of the
bership of
Daniel
Exchange mem¬
Charles C. Wright to
F. Reeves will be consid¬
July 29. It is understood
that Mr. Reeves will act as an in¬
on
Clark, partner in Wood,
Struthers & Co.* died on July 13.
Albert S. Colburn, partner in
Bell & Beckwith, died on July 7.
to The
Lothrop
Bruce
&
Avenue.
is
Financial
Ore.
now
Co.,
316
—
with
S.
SAN
A,
Harry
A.
Conrad,
Blyth
&
Fred
W.
Sixth
Chronicle)
FRANCISCO,
sociated
Bruce,
Co.,
C
a
1 if
formerly
Inc.,
is
with Mitchum,
Tully
Co., 405 Montgomery Street.
.—
with
now
attention
the
to
870
General Mortgage
Bonds, which
are
the securities
issued
on
Hotel.
As
was
May 13th, 1943.
on
Since
the
Park
Central
matter of fact, it
a
that
AV2%
paid
time
bonds
the
18th; 214%
have
on
interest
May
July 1st and we
on
been
now
August 1st
ment
of
on
that
informed
a
114%
special
will
pay¬
made.
be
This payment is on account of
5% points accrued interest due
on
each bond.
Based
on
fixed
interest
re¬
quirements, bonds are current¬
ly selling at slightly less than
a
10%r basis.
Of course, the
yield would be higher if effect
of extra payments on account
of accrued interest is taken in-j
to consideration.
of the Board of
of the
New
York
Se¬
TRADING
MARKETS IN
curity Dealers Association J. Jay
Schwadron, Burke & Co., Frank
Cannon, Syle and Company,
and John H. Valentine, John H.
Valentine
Co., were elected to
membership in the Association.
Yale
Chicago and Southern Airlines
offer
a
most
SECURITIES
SHASKAN & CO.
Members New York Slock Exchange
Memberi New York Curb Exchange
Interesting Possibilities
warrants
REAL ESTATE
40 EXCHANGE PL., N .Y.
attractive
Bell
Dlgby 4-4950
Teletype NY 1-953
situation
at
current
levels, ac¬
cording to an interesting circular
being distributed by Luckhurst &
Co., 60 Broad Street, New York
City. Copies of this circular may
be
had
from
the
firm
upon
Active Markets
re¬
quest.
Mid-Year Bank Figures
Study Now Available
NXTitleJtge. I
Prudence Collaterals a-?/
as¬
&
Laird, Bissell & Meeds, 120
Broadway, New York City, mem¬
and all other
bers of the New York Stock Ex¬
k
Chronicle)
only recently that we
was
7th Avenue
Membership
meeting
Governors
of
Interest of the late Joseph P.
Searing in Robert Winthrop & Co.,
New York City, ceased on June
It
called
NY Security Dealers Ass'n
of L. S. Kerr &
Co., New York City, ceased
July 8th.
Payments
•
partment
Exchange
Weekly Firm Changes
Hotel
locating
branch stores in the financial
ness
Park Central
important if it be¬
very
Ways and Means Commit¬
Sept. 8 to start
the machinery rolling toward new
and higher taxes."
"The
tee will meet ort
(Special to The Financial
(Special
rental
a
The first mortgage bonds of 165
Broadway and 61 Broadway might
Both buildings
However, a new class of ten¬ bear watching.
large stores vacant that
ancy is possible.
We hear that have
John Wanamaker & Co: is open¬ should appeal to other department
;.kk
ing a branch store at 150 Broad¬ stores.
banks
corner
.:
John A.
Co., Inc., Porter
,
PORTLAND,
Financial
These
stores
were
originally^
planned for banking quarters or select this busy corner at
shipping offices. Consolidation of known to be attractive."
1
tax,
a
corporations,
a
cost.-
ered
of the build¬
some
the store at 61 Broadway,
which has been vacant since before the war, was
reported to have
been the source of almost $100,000 per annum in
income, and this
rent has been entirely lost for the past few years.
dividual floor broker.
(Special to The Financial Chronicle)
with Goffe & Car-
to The
been
structed by the Ways and Means
Committee to explore the feasi¬
30th.
Earl Building.
kener, Inc., Board of Trade Build¬
(Special
experts
the
earnings of downtown New
poor
" For instance,
carry.
Chronicle)
ANGELES, Calif.—Lee H.
Newman
(Special
would
on
Interest
to
Wood has become connected with
CHICAGO, ILL. —Einar Graff
h^s become associated with Shil-
CLEVELAND,
of rais-
means
Treasury
Kerr in the firm
Salle Street.
formerly
never
taxpayers, special
liquor and tobacco, a
super 100% 'confiscatory' levy on
a
Thornton has joined the staff of Building.
Ryan-Nichols & Co., 105 South La
was
he
lower-bracket
excises
30th.
KANSAS
(Special to The Financial Chronicle)
[^
said
weekly firm changes:
Presley W. Edwards and John
(Special to The Financial Chronicle)
(Special
ings have had to
ings
Financial Chronicle)
added
been
for the
reason
occupancy
The
CHICAGO, 111.— J. P.
has
important
N. Y. Stock
Mr.
with
previously
was
the
revenue
pay
An
York office buildings has been the vacant stores
men
Gearhart
with war-swollen
La Salle Street.
La
ig
HAnover 2-2100
■
revenue.
South La Salle
Lewis, Pickett
number
Plain
a
couples, which would bring
more
"Under such
Co., 105 West Adams Street.
(Special to The Financial Chronicle)
on
thought \ the, Treasury was op¬
posed 'finally and unalterably' to
the sales tax.
He predicted that
■-V;
CHICAGO, 111.—Frank N. Plain
now
what
position they
proposition of
compulsory joint returns for mar¬
against
&
■■■
&
ford
S.
F.
with
formerly
Moseley & Co. for. a number of
years.
Co., Inc.
Mr.
formerly with Brails-
Slayton
Wetzel
ILL.—Joseph
Republic
was
compulsory
k:;-V:k/
Doughton (D., N.
or
Security Dealers Association
Street, New York 4
Department Store For Financial Section—Office
Building Bonds Bear Watching
himself
he
movement to¬
York
Real Estate Securities
couples.
all
incomes
over
$25,000 after
taxes, and new taxes on travel.
"Treasury and Congressional tax
(Special to The Financial Chronicle)
•
said
any
tax
"Chairman
might
41 Broad
sales
ask for increased income taxes for
Eoseberry
Broadway.
married
in addition to this
..
retail
C.), of the tax-framing House
Ways and Means Committee, just
"Mr.
-
for
oppose
ward
in
-
Federal
Gearhart
would
_
Broker-Dealer Personnel Items
Incorporated
Members New
compulsory joint income-
returns
ried
with the States."
sent upon request.
Seligman, Lubetkin & Co.
reporting
close
-
navigation facilities would
developed
by
co-operation
"Air
Complete descriptive circular will be
this, Associated
Press
Washington advices also
stated: kv'kk
"The Treasury's' reassertion of
its position came after Represen¬
tative Gearhart (R., Cal.), in an
interview, said he expected the
Treasury to propose in Septem¬
nel would be available to the na¬
tion in time of war.
80% of Asset Cost
MARKET: 39-40
partment's stand in opposition to
a levy had not
changed.
joint returns.
so
*
revenue.
ally would be required to extend
lines if the general inter¬
United States
Ratio of Liquidations to December 31, 1942,
such
their
ests of the
July
on
Series C-2
-
Mortgage Liquidating Certificates
These officials insisted the De¬
Mr.
*
1st
being considered as a
part of any proposals the Admin¬
istration may make to Congress
for raising additional billions, of
subject only to the amounts of
Congress makes available.
"Airlines operating internation¬
funds
New York Title
national retail sales tax
a
325
not
was
terests for
.
^
,.„
TITLE CO. CERTIFICATES & MTGS.
change, have prepared an inter¬
esting analysis of bank stocks
revised to include the mid-year
figures.
Copies of this analysis
may be had from the firm upon
request. '
•
'
:
SIEGEL &
39 Broadway, N. Y. 6
Bell
CO.
Dlgby 4-2370
System Teletype 1-1942
THE COMMERCIAL & FINANCIAL CHRONICLE
326
Thursday, July 22, 1943
Calendar of New Security Flotations:
price to be paid for the stock also
covered by amendment.
OFFERINGS
CIGAR CORPORATION
CONSOLIDATED
.
Cigar Corporation has filed
Consolidated
registration statement for $7,000,000 ten
a
3 !4 % sinking fund debentures to be
dated July 1, 1943.
Address—444 Madison Avenue, New York
year
v.
.
Business—Corporation
and
its
subsid¬
iaries are engaged in the business of man¬
ufacturing and selling cigars.
\
Underwriting—Eastman,
Dillon
Co.,
New York is named principal underwriter.
Others will be supplied by amendment.
Offering—Price to 'public will be sup¬
will be used to
payment of $1,000,000 face amount of
notes payable to Bank of The Manhattan
Company;
$938,130 ■to redemption on or
"before Sept, 1,
1943, of outstanding 10the
year 4% notes due July 1, 1950; $3,150,000
to redemption on or before Sept. 1, 1943,
of its outstanding
preferred stock at
shares
30,000
6Vs%
$105
per share, and $2,303,290 to redemption on
or
before Sept. 1, 1943, of its 20,939 out¬
standing
shares of 7%
cumulative pre¬
ferred stock at $110 per share.
Figures
are
exclusive of accrued interest and ac¬
crued dividends which will be paid out of
corporation's general funds.
Registration Statement No. 2-5171. Form
cumulative
prior
(6-29-43).
S-l.
statement effective
Registration
EWT. on July
Offered
July
15, 1943.
16, 1943,
at
4
p.m.
int.
and
101
by Eastman, Dillon & Co.; Kidder Peabody
& Co.; The First Boston Corp.; Blyth &
Inc.; Lehman Brothers; E. H.
Sons, Inc., and Ritter & Co.
.Co.,
JACOB
Rollins
'V.'fV.'' ; :
RUPPERT
Jacob
corporation, has filed
a registration statement for $2,744,000 5%
sinking fund debentures, due Julv 1, 1950.
Address—1639 Third Avenue, New York
Ruppert.
a
■■City.
Business—Engaged
principal
the
under
business
the
in
is lager
of "Ruppert.'!
beer
product
name
is
principal
of
sold
;
,
underwriter.
underwriters
other
■
will
Names
named
be
of
supplied
are
now
six
holders
as
of
Estate
follows:
Jacob
to
-
receive
of
sale
t and
of
the
apply
the
the
to
in
Eichler & Co., 2,000; Bear,
3,000; A. G. Becker & Co.,
Inc., 8,000; Biddle, Whelen & Co., 2,000;
Blair .& Co., Inc., 6,000; Boettcher & Co.,
2,000;' George D. B. Bonbright & Co.,
2 000;
Bosworth, Chanute, Loughridge &
Co., 2,000; 3. C. Bradford & Co., 2,000;
Brush, Slocumb & Co., 3,000; H. M. Byllesby & Co., Inc., 4,000; Frank B. Cahn &
Co., 2,000; Central Republic Co., Inc., 8,oooE. W. Clark & Co., 3,000; Richard
W. Clarke & Co., 2,000; Curtiss, House &
Co., $1,000; Paul H. Davis & Co., 3,000;
Davis,
Skaggs
& Co.,
1,000; DempseyDetmer
& 'Co.,
2,000; R. S. Dickson &
000; Bateman,
Stearns & Co.,
Inc.,
have
full
to
proceeds
extent
of
Ruppert
each agreed
be
necessary,
their
Farwell, Chapman & Co., 2,000;
Corp., 2,000;
Glore,
Michigan
of
12,000; Ira Haupt & Co., 2,000; HayMiller & Co., 4,000; Hayden, Stone
20,000; Hemphill,-- Noyes & Co.,
Co.,
Hill,
Hilliard
Richards & Co., 2,000; J. J.
Son, 1,000; Hornblower &
&
12,000; Janney & Co., 2,000; John¬
ston, Lemon & Co., 3,000; Kalman & Co.,
Inc.,
2,000; Kebbon,
McCormick & Co.,
4,000; A. M. Kidder & Co., 3,000; Kidder,
Peabody & Co., 12,000; Kuhn, Loeb & Co.,
22,715; Ladenburg, Thalmann & Co., 8,000;
Laird,
Bisseil
& Meeds,
3,000;
W. C.
Langley & Co., 4,000; Lazard Freres & Co.,
12,000; Lee Higginson Corp., 8,000; Carl
M. Loeb, Rhoades & Co., 6,000; Loewi &
Co.,
1,000;
Laurence M. Marks & Co.,
8,000;
A.
E. Masten & Co., 3,000; McDonald-Coolidge
&
Co.,
4,000;
Merrill
Lynch,
Pierce,
Fenner & Beane,
8,000;
Merrill, Turben & Co., 3,000; Milwaukee
Co., 3,000; Moore, Leonard & Lynch, 1,000;
F. S. "Moseley & Co.,
5,000; Maynard H.
Murch & Co., 3,000; Newhard, Cook & Co.,
received by
to repay¬
debts to
the
company,
aggregating $766,229
face
amount, plus interest from July 1, 1943,
($876,291 principal and interest at March
31, 1943.)
The company proposes to add
the
proceeds so received to its general
corporate funds.
Registration Statement No. 2-5161. Form
to
them,
Ames, Emerich & Co., Inc.,
Arnhold & S. Bleichroeder, Inc.,
2,000;
Auchincloss,
Parker & Redpath
4 000;
J. S. Bache & Co., 3,000; Bacon,
Whipple & Co., 4,000; Baker, Weeks &
Harden, 6,000; Bankamerica Company, 6,8,000;
Inc.,
respective
3,000; Ohio Company, 2,000;
energy,
and
gas
for
under
sale
rule
tive
Otis Company,
to
supplied by
be
for
Proceeds—Proceeds from sale of Series C
$45,000,000 face amount of 3aA%
Series
the
amount
the date of redemption
to
be
redeemed,
will
pany
the
plus
company.
:
METALLURGICAL
of the
refinement
and
ment
the
tration
of
and
company
uf
the
develop¬
metals
rare
named
be
shares
and
to the
amendment.
public
<" , J-
supplied
by
Proceeds—Net
stock
common
ing
from
sale
and
company
be
will
S-2
allocated
to
will. be
California
-
J?
:
has filed a regis¬
$3,000;000 12-year.
3%%
debentures due July 1, 1955. -•
Address—120
South
La
Salle
Street,
Chicago.
Business—Engaged in the building ma¬
terial business, principal products it sells
being rigid insulation, acoustical, gypsum,
roofing and hardboard products. ;
Un-derwriting—Paul H.
Davis
&
Co.,
Chicago, is named principal underwriter.
Offering—Price
to the public will be
supplied by amendment.
.v!"
Proceeds—Net
proceeds,
together with
other funds of the company, will be used
to redeem the company's outstanding 10year AVzfo debentures, due Feb. 1,
1947/.
Registration Statement No. 2-5180. Form
s-i. (7-13-43).
Corporation
for
statement
.
^
has
Drug Company
statement
for
filed
"
a
reg-,
$20,000,000
15-
sinking fund debentures due 1958 and
shares
of
cumulative
preferred
year
rate
value $100 per share.
and dividend
par
debentures
on
Interest
rate
—
.
•.
will
be
supplied
by
amendment,
\
each.
by
The
purchase
agreement
and
Following is
list of issues whose registration state¬
ments were filed less than twenty days ago.
These issues
are grouped according to the dates on which the registra¬
a
tion statements will in normal
become
effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 030 (b).
Offerings will rarely be made before the day follow¬
ing.
course
mined
PUBLIC
000
SERVICE
first
mortgage
Address—5265
Northern
filed
a
Indiana
Public Service
Co.
has
registration statement for $45,000,-1
bonds,
Series
C
dated
Aug. 1, 1943, due Aug. 1, 1973.
Interest
j rate wlu be SUppiied by amendment.
Hohman
Avenue,
Ham-
ARDEN FARMS
preferred stock will be supplied by amend¬
stock,
Business—Public
utility
operating
com-
for
has filed
par
a
shares
26,000
without
value.
by the company from the sale of
of its electric properties, will be
certain
used
to
mortgage
be
to
gold
be
3%
and
eggs
wholesale
registration
preferred
of
'
*
various
and
retail
Oregon
related
in
and
the
products
States
of
California.
,
Underwriting—There are no underwrit¬
Company proposes
through certain
ers.
its
to
rants,
the
employees and through security
solicit
and
with
shares
p0O.<?t
are
exercise
of
deal¬
option
war¬
the
expenses
tion
the
company proposes
to pay
of such employees in connec¬
solicitation.
If
all
such
such
not
security
expenses.
sold
company
dealers
If
all
for
will
their
such
Trust
National
&
Savings As-r
mortgage trust gold bonds pledged by
as security for such note -will
surrended
be
cancellation.
for
j
Registration Statement No. 2-5172. Form
S-l.
(6-29-43),
reim¬
out-of-
shares
are
is
bonds,
sup.• •». »-
named
together
will
company,
standing
with
be
first
other
used
202,700.
This
interest
first
deemable
the
out-
bonds
of
amount
at
of
its
•
will
a
which
interest, $7,-
mortgage
redeemable
from
funds
redeem
bonds
accrued
prise $6,454,000 face
1964
to
mortgage
require, exclusive of
com¬
4%
105, plus
series
accrued
March
1,1 1943, to date
$400,000 face'amount
and
second
at
of
of
sei-ies-due "1964,
106%
plus
re¬
accrued
interest
from March 1,1943,, to date of
redemption. Registration Statement No. 2-5159. Form "
•
* .'■ v,.
8-1." (6-24-431.
13,
statement); withdrawn
July i
-1943. ;■■;■•■
,
Business—Character of business done by
original issuer is a department store and
general mercantile business, at retail.
:* rH
July 15, 1943, to defer
Bror
voting
registration
a
|
Dahlberg, O. S. Mansell and Andrew
Dallstream,
certificates
stock
yl-yXy'<
;••
CORPORATION
CELOTEX
J.
for
have filed
voting trusi
trustees,
statement for
150,000 shares
Celotex
of
of common
stock,
Corp. .common
value.
Offering—(See
par
.
no
i
.
Celotex
statement
No.
syndicate has formed the
voting trust for the -common stock of the
company, and an opportunity will be af¬
2-5112.) u,The
forded
the
to
all
the
of
members
in
(mentioned
statement No.
syndicate
and
2-5112)
who
others
purchase such stock, to;
deposit
their
shares
of
common
stock
thereunder and receive voting trust cer¬
to
tificates.
common
application of the
and with the consent of the voting
trustees,
not
of
shares
Additional
deposited
be
may
holder
to
but
exceed
Underwriting—Company has engaged the
of H. M. Preston & Co., Chicago,
services
its
as
readjustment
upon
voting trust certificates are
150,000 shares of common
manager.
■•
Offering—Call for
deposit 'of bonds
plan of debenture adjustment.
der
urt-
Purpose—Purpose of requesting deposits
to ask depositors to consent to an ex¬
is
tension
of
thorized
1946,
fications
tion
the
maturity
5!/2%
Oct.
to
of
date
debentures
31,
the
1952
the
of
au¬
from May
1,
various modi¬
and
indenture.
See
Registra¬
Statement No. 2-5176.
Registration Statement No. 2-5175. Form
(7-5-43).'
D-i.
^
CROWLEY, MILNER & CO.
% 'i
v.: Crowley, Milner & Co, have filed
istration
statement
sinking
Amendment filed
.effective date.: > \
1952
fund
and
1962.
•
for
debentures
$1,245,600
Avenue
Mich."
business,
Purpose—Company
adjustment
stock
bentures
Issued
tures
as
of
due
....
,
general
retail.'^v.>c.v"i:..'S;
and
extended
to
plan
a
plan
a
The
1952
certificates
old
.
and
proposes
readjustment.
through
holders
;
.
store
at
debenture
ital
to
due
Farmer
and
•
Business—Department
mercantile
debentures
;
Address—Monroe
Street, Detroit,
reg¬
5 J/2%
extended
as
4%
^
■
a
$996,500
of,*
cap-^
of
5% %
de¬
to
be
dfeposit
to
are
of
{
5V2%
sinking fund deben¬
under
plan of debenture
1946
adjustment,. extending maturity date and
modifying indenture provisions,* The 4%
debentures
31,140
stock
basis
bentures
stock
will
be
shares of
on
issued
$50
of
in
exchange
prior
par
$40
face
plus $10 in cash for
under
't./,/;"'
-;•
i
;■'*."
Registration Statement No. 2-5176. Form
(6-30-1943).
'
S-l.
,
de¬
readjust-'
://fZ.-Xa's
;■■•
■
of
share of
one
plan of capital stock
ment,*: •
for
preference
amount
.
,
5
stock.
voting trust.
form
Purpose—To
FLORIDA
Registration Statement No. 2-5113. Form
F-l
(3-24-43).
statement, effective
July 9, 1943.
Registration
EWT.
P.m.
on
11:15
'
-
Celotex
stock,
no
for
registration
of common
filed a
shgres
has
Corp.
statement
75,000
value.
par
HI.
'
>
be
offered
with
in
the
board
by
group
con-<
of
standing
to
company
of
officers
formation
of
be
selected
Statement
directors.
by the
stock,
a
employees
advisory
of persons
business relations
or
limited group
a
negotiations
mon
at $10.50
company
selected
a
professional
a
capital
tain
1
underwrit¬
no
shares of common
the
to
recently, while the
on
are
employees of the company, in¬
officers and directors and those
serving
purchase
standing
to
by
says
dicate
augment
the
company
and
directors,
the
that
the
syndicate
employees, the
shares
Light
on
the
large
a
stock
the
company
members,
as
opportunity
well
to
as
affoTd
other
to purchase the
Sink¬
1956;
Preferred
stock,
will
4.
be sup¬
S.
E.
Second
Ave.,
Light
is an
subsidiary of
(Electric' Bond
Miami,
American
&
Share
operating public utility
en¬
gaged principally in generating, transmit¬
ting, distributing and selling electric en¬
(also manufacture and sale of gas),
serving most of the. territory along the
coast of Florida
(with exception of
ergy
\i\
east
the
of
Jacksonville area),
Florida
Underwriting
and other portions
.
and Dfrering—1The securi¬
ties
registered are to be sold by company
under the competitive
bidding Rule U-50
of the SEC's Public Utility Holding Com¬
Act.
Names of underwriters and
to public, will be supplied by postamendment to registration state¬
effective
ment
Proceeds
cer¬
the
&
System)
pany
in
Mortgage
"
Power
price
joined
registered
Cumulative
preferred
Address—25
working
including
Co.
First
$100. Par.
Interest rates on the
and Debentures, and the dividend
Business—This
its
syndicate
of
common
requested
&
$45,000,000
CO.
plied by amendment
carrying
issuance and sale of com¬
substantial group of
key
a
140,000
Bonds
rate
was
company
with a view to
block of out¬
from
a
single
source
which had indicated a willingness
to sell.
When reasons arose whereby the
proposed purchase could not be carried
out, the group acting through the syn¬
the
and
the
of
capacity and
having
long
Power
SEC
LIGHT
&
Fla.
75,000
only
Florida
with
Street, Chi¬
A
■•
share
POWER
oonds, due Oct. 1, 1971; $10,000,000
ing Fund Debentures, due Oct. 1,
3tock,
CELOTEX CORPORATION
cluding
,
Washington,
of proceeds
Balance
pay
company
will
Address—1900 West Slauson Avenue, Los
at
series of, 1956
giving effect to
bonds in the face
Upon the payment of such note,
face amount of the company's
$641,000
the
trust
the balance then due
installment note held by Bank
America
first
to
used
the
5%
after
of certain
of. $641,300.
amount
first
the
of
bonds,
outstanding
the surrender
will
all
redeeem
Offering—The
Angeles, Cal. - \ ... •
■
■■
■•
-■
■{
buying and selling of ice cream, the proc¬
essing of milk, and the general business
of buying and selling milkt butter, cottage
cheese,
together with funds
Proceeds—Proceeds,
received
Underwriting—There
-
be
Co., Indr;
principal underwriter.
Others will be supplied
by amendment.'w*
Proceeds—Proceeds
from " sale
of ' the "
ment.
..
ers.
us.
CO.
Arden Farms Co.
statement
burse
mond, Ind.
to
will
^Underwriting—Central Republic
(
'
,
Offering—Price of both bonds and prior
•
per
ers
INDIANA
unknown
are
/r ,::y,i
t
,
ment.
sisting
of
TUESDAY, JULY 27
or
the
.
Business—Company Is engaged in
building material business.;' :;•//
a
in
■ ':
; CROWLEY, MILNER & CO.
f
;
(Underwriting—Principal underwriter for
Crowley, Milner & Co. have filed a reg¬
York,
istration statement for -certificates of de¬
Web¬ posit for $996,500 5 V»%
sinking fund dester
and
Blodget,
Inc.,
and Bosworth, ■ben-tures, due 1946. ':'-vi ' '- '/: *- L.jsvV?.*
Chanute, Loughridge & Co., Denver. Other
Address—Monroe
Avenue
and
Farmer
underwriters
will be named by amend- Street, Detroit, Mich, s
*
'
,
Address—120 South La Salle
list of Issues
whose registration statements were filed
twenty days or more ago, but whose
offering dates have not been deter¬
below
present
*water.;.
.
the bonds is Dillon, Read & Co., New
and for. the preferred stock Stone &
cago,
UNDETERMINED
We
;
OF OFFERING
DATES
Offered July 19, 1943 at $33.50 per share
syndicate headed by Lehman Brothers
and Blyth & Co., Inc.
J
Fort
tric energy.
;i
shares
Street,
primarily
Offering—Price to public
-plied vby.\amendment.*.^"
mortgage
in
filed
v..
Registration
Business—Engaged
on
Pacific
Company
of
California, preferred stock will be supplied by amend¬
1,000; Paine, Webber, .Jackson & Curtis, ment.',.
Address
43-63
Leon
Street,
Boston,
8,000; Piper, Jaffray & Hopwood, 2,000;
A-2. (6-25-43).
Reynolds .& Co., 8,000; Riter & Co., 6,000; Mass.
Business—^Principal businesses in which
Registration
statement
effective
5:30 Robinson-Humphrey Co,, 1,000; Robinson,
Rohrbaugh & Lukens, 1,000; E. H. Rollins company and its subsidiaries are engaged
p.m. EWT. on July 14, 1943.
are
two-fold:
Manufacture
of
drugs,
& Sons,
Inc., 8,000; L. F. Rothschild &
Offered July 14, 1943, at 10414 and int.
Co.,
6,000; Schoellkopf,
Hutton & Pom- pharmaceuticals, toilet articles, food and
by The First Boston Corp.; Blyth & Co.,
eroy,
Inc.,
4,000;
Schwabacher & Co., chocolate products, rubber articles and
Inc.; Eastman, Dillon & Co., and Granother products
used in or sold by drug
8,000; Scott & Stringfellow, 3,000; Chas.
bery, Marache & Lord.
stores and
distribution of such products,
W. Scranton & Co., 2,000; Sheridan, Bogan
and secondly the operation, by subsidiaries
& Co.,
TWENTIETH CENTURY-FOX FILM
1,000; Shields & Co., 8,000; Shuof retail drug stores.
CORPORATION
man, Agnew & Co., 2,000; I. M. Simon &
Underwriting —Bmith,
Barney
& Co.,
Co.,
1,000;
Singer,
Deane
& Scribner,
Twentieth-Century-Fox Film Corporation
New York, heads the group of underwrit¬
has
filed
a
registration
statement for 1,000; Smith, Barney & Co., 12,000; Wm.
ers.
Others
will be supplied by
amend665/715 shares of preferred stock,
$1.50 R. Staats Co., 3,000; Starkweather & Co.,
«'
;■''"■■: .',!,■■'
dividend
cumulative, convertible, without 3,000; Stein Bros. & Boyce, 3,000; Stix & ment.
Offering—Price to public will be sup¬
par value.
The shares are already issued Co., ,2,000; Stone & Webster and Blodget,
plied by amendment.
and outstanding.
12,000; Stroud & Co., Inc., 4,000; Sutro
Proceeds—Proceeds
will
be applied by
& Co., 3,000; Swiss American Corp., 2,000;
Address—(-444 West 56th Street, New York
company together with other funds to the
Spencer Trask & Co., 6,000; Tucker, An¬
City.
redemption of $30,243,200 face amount of
Business—Corporation and its subsidi¬ thony & Co., 8,000; Union Securities Corp.,
the
company's
25-year
5%
bonds due,
aries are
engaged principally in the pro¬ 20,000; Van Alstyne & Co., 2,000; Vietor,
March 15, 1953, presently outstanding in
duction
and distribution of
motion pic¬ Common, Dann & Co., 4,000; G. H. Walker
&
tures of all kinds, including features, short
Co.,
6,000; Watling,
Lerchen & Co., the hands of the public, at 103% of face
Such re¬
subjects and newsreels, in various parts 2,000; Wertheim & Co., 12,000; Westheimer amount plus accrued interest.
& Co., 1,000; White, Weld & Co., 20,000;
demption will require $31,150,496 plus ac¬
of the world, but primarily in the United
"States.
■;■
'
Weeks & Stubbs,
Inc.,
4,000; crued interest, which to Sept, 15, 1943,
•,'■■
■>•,'"'
/ ■:;
; Whiting,
V/,
v.
Underwriting—The shares of preferred Wisconsin Company, 6,000, and Yarnall & will amount to $756,030.
stock
Registration Statement No. 2-5182. Form
registered
are
outstanding
shares Co., 2,000.
owned by the. Chase National Bank of the
Registration
Statement
effective
4:30 S-l. (7-16-43).
p.m.,
EWT. on July 17 as of 5:30 p.m.
City of New York. The names of the seV'
eral underwriters who
will purchase the
EWT. July 14.
3,000;
together with the amounts to be purchased i by
Power
first
,
•
100,000
stock,
Co. has
i
-
and
purchase,
distribution
electricity and ice,, purchase,
bonds/
of
COMPANY
DRUG
United
/!
'
production, distribution and sale of natural !"
and production, distribution and sale
of
redemption,
Electric
$16,000,000
sociation.
istration
'
"i
West -Seventh
Engaged
—
of
regis¬
on
WEDNESDAY, AUG. 4
UNITED
*
•
■
the % generation,
transmission, distribution and sale of elec¬
!v.
CORPORATION
Celotex
'
11:15 fr
)
gas,
Cal.-
SUNDAY, AUG. 1
CELOTEX
—
'
"
-
,
effective
.
sale
bonds,
3 3/4%
Series due 1968, and 40,000 shares
5!4% -convertible prior preferred stock, par
Viilue $100 per share.
Address—3771 Eighth Street, Riverside,
tered
■
tration
and
equipment
CALIFORNIA ELECTRIC POWER CO.
capital surplus.
(7-io-43).
(3-5-43).
Business
due
per
be
facilities,
plant
work¬
Registration Statement No. 2-5179. Form
(3-1.
'.',3
of
additional
working capital
Registration Statement No. 2-5105. Form
general corporate-purposes.
Fiv«
share of the net proceeds will
allocated to capital
and the balance
dollars
Distribution is to
the corporation
for
for
used
of
statement
Chicago,
u
Proceeds—Expansion
;•
■■
on
for
..."
July 9, 1943.
and
oommon,
*>10.;
installation
^
the
share
one
Underwriting—None.
of
added to
be
the
of
capital
be
,
proceeds
will
will
and
be made by direct sales by
its treasury stock.
amendmeirt../';;v^':'/;;r.:t:r^7'^;f
Offering—-Price
brick.- i
face
and
'■'■.■
No. 2-5112. Form
EWT.
manufacture
com¬
of
—•
by
preferred
price .-per
■'*/►.'" *'*:-f-y?
supplied
of
capital
purposes.
Sta(<jment
Worth, Texas,
shares of 7%
Offering—Present offering v.consists, -t>.
2,000
units, -each . unit consists of four
Hallgarten * :
,
Co. ' is
principal underwriter.
Others will
Underwriting
Texas.
has
"l
registration statement for $6,850,000 first
mortgage bonds, 3%% series due 1973.
:V"
Fisher
Street,
Fort
V ;■./■ %
"
"Business—Manufacture
...
common
.
COMMUNITY PUBLIC SERVICE CO.
Community Public Service Co. has
regis¬
shares of
the
v
working
corporate
Address—408
10,000
15,000
Address—2500-22
t
and fabrication of rare
compounds, alloys and commercial
products.
for
par.
were
a
CORPORATION
a
for
Registration
a.m.
1943, to defer
Corporation has filed
trust
company.
Registration
A-2 (3-24-43).
far as they suffice,
so
.;;•-:;•■■■■
July 15,
statement
Worth,
production
metal
(6-29-43).
mon,- no
a
.
consists
subsidiaries
proceeds
prepayment,
preferred stock and
•
.
other
by the board
will be applied
be fixed
company's notes outstanding in the
BURTONITE
;
.
filed
at
the public
voting
the
for • additional
effective date.
statement lor 53,566
shares
without par value.
»•(
Chicago, 111.
Business—Business
its
warrants, to
may
stock
will
through
the
Burtonite
J
CORP.
has
Corp,
stock,
common
of
as
to
the
company
such
Proceeds—Entire proceeds from the sale
be received by the
company and used
of the shares of
subscribed
a
of
stock
com¬
the
Address—North
■
price
not
are
exercise
s-i.
\f:
Metallurgical
registration
of
as
formed
After
the
warrants
proposed
the
syndicate
Subscription
Amendment filed
THURSDAY, JULY 29
Fansteel
the
net
though
that the stock to be sold should
be offered to the selected
group at a .price
of
$10.50 per share.
The
share
one
to
as
through then- available invest¬
banking channels. The board deter-
ment
now
amendment.
then
company
price
mined
principal amount of $1,050,000.
Registration Statement No. 2-5166. Form
of the com¬
other funds of
(7-8-1943).
FANSTEEL
of
of
rate
held.
by
the
a
amount
marketed
sub¬
of
Registration Statement No. 2-5178. Form
S-l.
the
.
of
issue, at
:
to
stock
rights
to
-'
■
at
filed
Proceeds—Net
the bonds to
on
of
same
preferred
proposes to sell such
■such
bonds,
of
shares
be
expiration
the
expenses
paid <out
be
2Vz
preferred
at 106J/4r/o of
$47,812,500.Interest
or
registered
will
pany
1, 1969,
due Aug.
A,
face
shares
each
the
stock,
preferred
for
price
bonds, exclusive of accrued interest, will be
applied,
together
with
other
necessary
funds of the company, for the redemption
of
stock
pay
procured
by
/',,, '*. •
'
-
its
being
post-
amendment.
effective
of
scribe
'
amendment.
/.
such
through the
such
warrants
Offering—Company has granted to hold¬
the
of
of
dealer.
ers
Commission.
Names of
underwriters will be supplied by post-effec¬
ding
instead
will
company
$1 for each share sold
exercise
will offer the
competitive bid¬
the
the
dealers
water.
Underwriting—Company
2,000;
12,000;
George E.
securities.
Bank
Weeks,
not directly
proceeds from the
Amanda E. .Silleck
ment
l
any
the
dividend
cumulative, con-r
value, from the Chase
of the City of New York.
Twentieth Century thus
will not receive
any
proceeds from sale of any of the
shares of •preferred stock registered which
will go to the selling stockholder.
The purchasers and number of shares to
be
purchased follow:
Lehman Brothers,
35,000; Blyth & Co., Inc., 35,000; Adamex
Securities Corp., 4,000; A. C. Allyn & Co.,
B.
is
company
registration
$1.50
National
Inc.,
;
be retained by the holders.
its
vertible, without par
&
the debentures, as modified, are
Proceeds—The
to
corporation gives the names of
group of investment houses
formed to purchase the 665,715 shares of
Twentieth
Century-Fox
Film
preferred
den,
Schalk and Anna C. A. Dunn.
The
company
has now outstanding $2,996,000
face
amount of
10-year 5%
debentures,
due July 1, 1950.
It is proposed to modify
the debentures without, however, extending
the date of maturity or changing the in¬
terest rate thereof, changing the designa¬
tion to ,5 %
sinking fund debentures and
providing other covenants.
$252,000 face
pert
to
amendment
an
nation-wide
& Co., 12,000; Goldman, Sachs &
Co.,
12,000; Granbery, Marache & Lord,
2 000;
Hallgarten & Co., 12,000; Hamlin
& Lunt,
1,000; Harriman Ripley & Co.,
Ruppert, George E. Ruppert, Amanda E.
.Silleck, Manufacturers Trust Co., J. Rup¬
amount of
In
a
First
the
to
trical
bonds
Offering—Price
Forgan
public will be
by amendment.
The securities
outstanding and will be sold by
Offering—Price
2-5160. Form
statement
Co., 1,000;
by
amendment.
'
Registration Statement No.
(6-25-43).
;,/■'/•■■:/; •'.'■■■
3,000; Dominick & Domimck,
6,000; Doolittle, Schoellkopf & Co., 2,000;
Ndlson, Douglass & Co., 1,000; Drexel &
Co., 8,000; Eastman, Dillon & Co., 12,000;
Elworthy & Co,, 2,000; Emanuel & Co.,
2 000;
Equitable Securities Corp., 3,000;
Estabrook & Co., 6,000;
Fahey, Clark &
Underwriting—First Boston Corp. of New
York
;
the sale of the
sold
produc¬
supply,.,
manufacture,
transmission, distribution and sale of elec¬
A-2.
Co
'■/"•'
brewing and selling fermented malt liquors.
!
proceeds from
any
stock,
plied by amendment.
Proceeds—Net proceeds
Its
ceive
principally in the
purchase,
engaged
pany
tion,
S
■city.
of
will be
,
Offering—Offering price to the public
will be supplied by amendment.
Proceeds—Proceeds will go to the selling
stockholder.
The corporation will not re¬
...
will
be
applied
as
follows:
$53,170,000 "to redeem at 102%, the $62,000.000 of company's First Mortgage 5s of
$15,693,370 to redeem at $110 per
the 142,667 shares of company's
preferred stock, no par.
Further de¬
tails
to
be
supplied
by
post-effective
1954;
share,
$7
amendment
Registration Statement No. 2-4845.
Form
(9-17-41)
Amendment filed July 1, 1943, to defer
A2.
effective date
a*
Volume 158"
IOWA
& LIGHT CO.
POWER
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4196
40,716 shares in First Mutual Trust Fund.
?Address—120 Broadway, New York City.
Business—Investment trust.
7-*'V;
••
&
r-'-.y
1973.
1
Sixth
Address-—312
:;:7 vBusiness—Is a public utility engaged in
the business of furnishing electric serVioe
to be offered
lor sale at competitive bidding under the
rules of the Commission.
Names of the
are
National Securities & Research
•
statement.
(6-28-43).
Amendment filed July. 16,
the bonds; 'together with
funds to be received from
aggregating $2,500,000, will be
Used to redeem on Sept. 1, 1943, a total
pf $11,232,000 face amount of the com¬
pany's f irst ;mortgage bonds; to .redeem., on
Dbfe l; 1043, -10,133 shares ip^r ;' $ 1001 of
pompany;s 7 f?. cumulative preferred stock;
effective
of
date.
:
^
_
1943,
'
>
...
to defer
»
t
Corporation has
Co: of "$1,750,000
refunding
mortgage
Des
of
bonds,
;
paid
fully
:-;;
!,o
andr non-asV.r. v.;-
under the laws of
April 27, 1943, for the pur¬
pose
of
engaging either alone or with
Others'in any phase of the oil business."
7 Offering—Price to the public is $100 per
Delaware
Series
Co.
A-2.
?
be
7
underwriters
City, Utah.
will
be
supplied
by
mortgage bonds,
amend¬
be applied
redemption
at
of
the
to
first
and
refunding
mortgage gold
bonds, series A, due Sept. 1, 1954; to the
redemption at 105 of the face amount of
$1,359,000 of Parr Shoals Power Co. first
Co.
sinking
1952,
fund
to
and
on
share.,
105 of the face amount of $10,213,300
Lexington Water Power Co. first mort¬
gage5% gold bonds, series due 1968. ■ 7
Registration Statement No. 2-5162. Form
p.m.
July 15,
7: ,'v
EWT. On July 16, 1943.
Invited—Company is inviting bids
from it of $20,000,000 1st
mtge. bonds due 1973; all bids must be
presented to the company (Room 2601) 61
Broadway, New York City before 12 o'clock
noon, EWT., July 26.
Bidders will name
The
Bids
for the purchase
'effective date.
C.
A.
;
.KEYSTONE; CUSTODIAN FUNDS,
F. E. Rand and Leslie
the Pacific Mutual Share¬
Committee have filed
Balch,
as
INC.
,7
Business—Investment trust." .-;r> 77'
Funds,
[
of
7-77
Business—Life
|
INC.
FUNDS,
to
of
one
the
mittee
them
trusst. a *
Underwriting • —Keystone
'Funds, Inc., sponsor.
?
i
(■
•.
•.
is
called
main
to
in
,,
and
Co.
and
the
^Offering—At\marketf7;;.-'i 77,-7 7.,
Proceeds—For investment.
77
Registration Statement No. 2-5169. Form
.
so-
rehabilita¬
of
and
said
mutualization
Mutual
Life
California.
of
held* by
the
agreement
Pacific
However,
the com¬
securities
.with
reinsurance
the
it.
of
by
objectives
vote
connection
plan
tion
held
F-li
(2-19-43).
Insur¬
:7;7'777
■■7r7,7- v.
1943, to defer
filed June 28,
Amendment
■>
•
Heat
shares
Business
plus
"•
Riverside
Mills
has
registered
$639,000
5Vn%
first mortgage bonds, dated Feb.
1943, due Feb. 15, 1963.
'
St.,
Cincinnati
7:7-77;
electric
Dnderwiiter —Columbia
Gas
utUltj
•
v
(or
share held
each
at $100,016 per
when
repay
vances
!
(3-^0-401
filed July
,
15,
to defer
1943,
Address—Augusta, Ga.
.
4j
CORPORATION
Gas
^
registered $75,000,000
and collateral trust 3
mortgage
oonds due
1958•
York Citj
Address—2 Rector Street, New
7-
Business—Production and sale of natural
part of Electric Bond and Share Sys¬
?as;
tem
Underwriters;—None
will be
Terms—Bonds
Offering
institutional
whose
investors,
sold
to
will
names
supplied by amendment, at 99.34%
redeem $28,850,000 United
Public Service
6%
Debentures due
7e
.
-
be
disposed
Should
of
company
bonds
agreed to buy
under the laws of
for the purpose
of- engaging, in the business of acquiring,
exploring, developing and operating minfing properties in Mexico, and the milling
and marketing of ores
and concentrates
Business—Organized
.
on
'therefrom.
Oct. 23,
1942,
v'
-
than
Mills
any such
desires
to
$83.50
per
interest. V
crued
Underwriting—Offering
will
be
made
the public by the company, and
and dealers for their own ac¬
counts or as selling agents of the com¬
pany. • ' .:'7"v.;
Offering—Offering
consists
of
50,000
units, a unit consisting Of a production
$100
-bonds which Riv¬
sell
•
par
not
at
1953; to pay 6%
100
demand note of $25,925,>
and Share; to repay
Bond
Electric
to
$2,000,000 open account debt to E. B. & S.;
and to purchase from
$6,000,000
Co.,
bonds
due
United Gas Pipe Line
its 1st & Coll. 4%
of
1961.
Balance
will be
in
used
and
value
.
effective date.
13, 1943, to defer
,
note
the
in
shares
of
face
amount
common
stock,
of
$10
price
and
per
20
unit
America.
located
Proceeds—For
■ v
development, purchase of
equipment, etc.
'
Registration Statement No. 2-5151. Form
S-3
(6-11-43).
Amendment filed
July:'16, 1943, to
defer
effective-date.
<
at
SECURITIES
&
RESEARCH
Securities & Research
filed
and
Owns
and
67
stone
a
Corpora¬
registration statement for
7
South
N. J.
Offering — The
operates
a
Munn
Avenue,
ten-
house
East
perferred
stock
being
bonds presently
mortgage on the prop¬
67 South Munn
J., at the rate
of
four
shares
of $100
value
each,
in
addition to $600 in cash, in consideration
for the surrender for cancellation of each
the
j7
3EC
Feb.
on
been
Corp. filed amendment With
Gas
21,
1942, stating that it had
to
unable
further
the
extend
pur¬
chase
agreements with 14 insurance com¬
panies covering the proposed private sale
such insurance companies of $75,000,000
to
of
the
company^ first mortgage and col¬
bonds, 4ue 1959.
This
poration
to
the
intends
end
that
privately,
said
agreements
to
its
by
continue
bonds
renewal
or
negotiations
shall
of
otherwise,
be eithe
the
or
Amendment
filed
unsubordinated
the registrant at
Avenue, East Orange, N.
July 7,
1943,
■
afore¬
offered
a
for
than
more
one
par
OF
WORTH, INC.
an
were
by
66,922
statutory lien on all Stock in such
by each borrowing
member institution.
The Federal
banks owned
Home
that
Street,
Wil¬
mington, Del.
Business—Company is a new corpora¬
tion organized
March 25, 1943.
It will
engage
in the business of selling drug
store merchandise, other than that manu¬
factured by United Drug Co. to its stock¬
holders
who
will
be
the
distributors
of
products of United Drug Co.
While the
corporation is being sponsored by United
Co., ho control over its operations
Drug
A
measure
for
the
Interior
for the 1944 fiscal year was
Loan
at
no
Bank
time
Act
indebtedness
of
available
$5,000,000
the
from
over
will make a total
this
for
-,;
7;
/
V;
Seaboard Reorganization
Possibilities Interesting
L.
H.
Rothchild
&
Co.,
120
Broadway, New York City, have
prepared a study of Seaboard Air
Line, which they believe is es¬
pecially timely in view of the
final report of the Special Mas¬
ter's plan for reorganization of
Seaboard. Copies of this interest¬
ing study may be had upon re¬
quest from L. H. Rothchild & Co.
requires
Except for the
a
carried
purpose.
Registration Revoked
The
any
stock held by it.
projects; this amount
with the
unexpended
1943 fiscal year
of
and
conservation
water
utilization
the aggre¬
shall
outstanding advances made
Federal Home Loan Bank
to any
member exceed twelve
times the amounts paid in by such
member
for outstanding capital
by
for
000
gate
member
in
of
32
dealer-broker
Charles
Hughes
registration
& Co., Inc.,
Broadway, New York City, has
been
revoked by the Securities
Exchange
Commission
on
charges of violating the Securi¬
and
liquidation of $6,427 on which ties Exchange Act of 1934 and the
the bank anticipates no loss, there
Securities Act of 1933.
were no delinquencies in princi¬
pal or interest in excess of thirty
days. In fact, the banks have ad¬
$1,000,000,000 since
inception, without sustain¬
single loss."
vanced
their
ing a
over
Coal Stock Looks Good
a
Tenth
were
The balance
;
.
unsecured
The secured advances
which has
most widely diversified field of
Coal Company,
It is understood that the
firm feels
tion is
in the
not
uase
the
and
means
Situation of Interest
Stock
of
The
pany, owners
of
Interstate
a
York
40
Exchange
Place,
offers inter¬
possibilities for
apprecia¬
tion, according to a memorandum
New being distributed by Kneeland &
Company, Board of Trade Build¬
City, members of the New
York Stock and Curb Exchanges.
Copies of this
orandum may
kan &
Com¬
large national
chain of restaurants,
pany,
to seek re¬
lief in the Courts.
esting
by Shaskan & Com¬
ac¬
justified by the facts'
operations, offers attractive pos¬
andum issued
Hughes
Commission's
sibilities, according to a memor¬
value.
West
of
Approved By President
balance
$26,950,307 on
Traer
United
Wholesale
Druggists
of
Forth
Worth, Inc., hRS filed a registration state¬
ment for 5,000 shares of common
stock,
no
the
Interior Dept. Funds
together
quarterly
or
Federal Home Loan Banks held a
to defer
DRUGGISTS
.
to ten years, such ad¬
required to be amor¬
The current situation inTruax-
WHOLESALE
FORTH
for
$1,899,682,
one year
or $3,000,000 for the Boise
(Idaho)
amortized, but project. It also appropriates $64,-
home
mortgages, the unpaid balances of
which aggregated $174,086,071, by
obligations of the United States,
direct or guaranteed,
having a
face value of $4,122,325 and other
eligible collateral totaling $78,228.
In addition to this collateral, the
effective date.
Address—100
registered is to be offered otherwise than
for cash.
It is to be distributed to hold¬
of
United
Building,
Orange,
ers
••
(5-15-41)
UNITED
-
apartment
secured by the first
CORPORATION
National
tion has
; ■
Securities
Bankers
—
brick
erty of
NATIONAL
—
Business
Story
.
7
Philadelphia, Pa.
$10, lawful money of the United States of
-
HOLDING COMPANY
value, to be authorized.
Address
'
Registration Statement No. 2-4760, Form
\-2
.
.
monthly
up
collateralized
to the public as circumstances shall dictate
in order to obtain the best possible price."
Sixty Seven Holding Company has regis¬
tered 3,412 shares of preferred stock, $100
par
$1
companys
on
preferred stock
sold
filed July
SEVEN
$9,502,490
.amendment states: "These purchase agree¬
ments, expired on Feb. 16, 1942.
The cor¬
(6-28-43).
SIXTY
of
ac¬
direct to
(to; brokers
penditures and possibly to pay accumulated
lateral trust 3%%
Registration Statement No. 2-5165. Form
S-l.
part to reimburse treasury for capital ex¬
dividends
Banks
aggregated
for
be
not
Proceeds—To
Gas
less
..7
7. 7-.;•"--,-.7
Purpose—For reorganizaztion. 7: • v 7;..-7
Amendment
'■• ■>
acquire
exceeding $120,000 through the
exchange of preferred stock purchased hy
it, Johnson, Lane, Space & Co., Inc. has
erside
Mexico
other
purpose.
an
amount of
any
not
'Tucson,. Ariz.
--
for
Smith
Of the total advances out¬
basis.
Corp.
United
Mr.
ac¬
standing on June 30, 1943, $63,241,270 were on a secured basis
and
GAS
UNITED
profits
banks,
made
are
on
basis.
Registration Statement No. 2-4379. Porn
\-2
1943
year,
made
and
tized
'777^
costs
30,
measure on May 20 and the Sen¬
Final Congres¬
while the bal- j ate on June 18.
$43,961,427 represented sional action came on July 6
need
year
instruction
Federal Home Loan
when the Senate agreed to a con¬
and on which in¬ ference report which the House
stallments of approximately $5,- adopted on July 5,
The bill includes $22,569,000 for
622,891 are due within one year.
Under the rules and regulations the Central Valley project in Cal¬
for the Federal Home Loan Bank ifornia, $3,500,000 for the Colo¬
System, Federal Home Loan Bank rado Big Thompson project and
less
&
Gas
12
June
long term advances which mature
Electric Corp.
current debt and
(2,835,000 first mortgage bonds held bj
iarent and associated companies, anu to)
Columbia
Proceeds—To
the
000
one
of
ance
Substantially all outstanding stock is helo
ay
Report Income
was
the
advances
share
-
statement for 1,000,000 comand production notes in the
of $500,000, lawful money
of the United States of America.
[
:
Address—406 Valley National Building,
public
up to ten years,
Electrl'
&
of
ended
undivided
of
within
:.7 - ■ -v-; -7 -....
"■:7
- ■: \
•;
17"
Offering—Stockholders will receive oi
(er to subscribe to 25/94ths of one com
non share in units of 5/94ths of a shar*
lor each 5/94ths of a share held at $5.3',
4or each
unit.
On a share basis, stock
solders may subscribe to
5 new share?
(irsi
:
shares
31,
short term advances which mature
t
,
registration
March
providing $105,000,'Department
signed
condition, Mr. Smith's statement by President Roosevelt on July 12.
said:
The bill carries large sums for rec¬
"Advances outstanding on June lamation and irrigation
projects
30, 1943 amounted to $90,191,577 in the West.
of which $46,230,150 represented
The House originally passed the
iompany
Jorp.
15,
.
,
.mon
the
will
Regarding the banks' financial
■
(6-29-43).
.aggregate sum
at
vear
first
and
refunding mortgage gold
bonds, Series A, 5%, of which $11,813,000
amount were outstanding at March
31, 1943, these bonds having been guaran¬
teed as to principal and interest
by the
Utah Company.
Registration Statement No. 2-5173. Form
A-2.
(6-30-43).
pointed out.
Power Co. re
$100 par commoi
Main
&
income
period
and
counts
and
Operating
<—
Amendment
-
.
outstanding
Utah Light & Traction Co.'s 30-
face
sent the net increment to the sur¬
•effective date.
Business—Company devotes its activity
'
1:7 ';''.
«■
almost entirely to cotton textile by-prod¬
Amendment filed July 13, 1943, to defer
ucts or. waste.
■' 11
•
' 7
"7
'effective-date.
7; Underwriting—No : formal
underwriting
agreement has been entered into covering
KEYSTONE CUSTODIAN FUNDS, INC.
the exchange offered.
.•
•
Offering—Under a plan of reorganiza¬
,
Keystone Custodian. Funds, Inc., has filed
a registration statement for 500,000 shares
tion Riverside Mills offers to the holders
of full certificates of participation, Key¬
of its preferred stock in exchange therefor
stone Custodian Fund, Series "S-2".
$120 par value in first
mortgage 5Vfe%
7 Address—50 Congress Street, Boston.
bonds, plus $2,625 in cash lor each snare
Business—Investment trust.
of its preferred stock, provided that 75%
!■
in amount of the issued and outstanding
Underwriting — 'Keystone
Custodian
Funds, Inc., .sponsor..
preferred stock accept the same and ten¬
der their stock in exchange on or before
Offering—At market.
7
Proceeds—For investment.
-.
Sept. 1, 1943, but time may be extended by
the board.
The bonds of this issue shall
Registration Statement No. 2-5170. Form
<M. (6-29-43).
7 •: • 77'..^77i only be exchanged for preferred stock or
v
Amendment filed July 13, 1943, to defer
sold to raise money to purohase and re¬
effective date.
tire preferred
stock or to reimburse the
company for preferred stock which it may
METALES DE LA VICTORIA, S. A.
*
purchase before plan becomes ^effective,
Metales de la Victoria, S. A. has filed a
and which it does not retire and shall not
C-l.
Light,
25,000
[effective date.
RIVERSIDE MILLS
Custodian
'
'
Union
Address—4th
.
Registration Statement No. 2-5098. Form
•/
^
shares
the
vote
ance
Inc., has
for 25,000
(shares; lull certificates of participation.
Keystone Custodian Fund, Series "S-l".
[
Address—50 Congress Street, Boston,
•ft- Business—Investment
insurance.
Purpose—The agreement places no' lim¬
upon the powers of the committee,
:
tweystone
Custodian
Funds,
filed a
registration statement
were
pay
period
.....
Ohio x'!y\ :;:7:77777'7777;
Insurance
itation
v
affecting
CUSTODIAN
KEYSTONE
Life
,
■
Utah Company's first lien and
mortgage gold bonds, Series of
1944", of which $4,068,000 face
1943.
$1,067,483 and prior period ad-^>"
justments totaling $265,361 repre¬
.
Offering—At market. >
1
" " "
v; Proceeds—For investment: >.
I; Registration Statement No. 2-5168. Form
-;c7l. (6-29-43),. 77 7y,7jv.>7
,
; Amendment filed July 13, 1943, to defer
effective date:;
• »
-v?7
}
Mutual
Pacific
7 *
"
" "'
Address—Of issuer, 626 South Spring
v- St.,
Los Angeles, Cal.
Executive office,
•523 West Sixth St., Los Angeles, Cal.
:
.
of
declared by the banks in the total amount of
$832,199.
itook
Co., of California.
.7, Custodian
Underwriting •— Keystone
Inc., sponsor.
{
share,
(6-30-1943).
{istered
'
iKeystone Custodian Fund, Series "K-2".
5
Address—50 Congress Street, Boston.
used
of
PANY
(
registration statement with
the SEC
for
voting trust certificates for 508,200
shares
of
common
stock,
par
$1
per
Keystone Custodian
Funds, Inc., has
jfiled a registration statemeno for 100,000
i shares
full •- certificates
of v participation,
gen¬
transferred to the Banks' legal reserves as
required
by law, according to a statement issued by Everett
Smith, financial
representative of the banks.
Dividends for the same
UNION LIGHT, HEAT AND POWER COM
a
•
"4yas
amount
77;.':,. 7.. .7
price to the
by amendment.
net
which 20%
Registration Statement No. 2-5174. Form
Protective
holders
1943, to defer
amendment.
six-months
investment.
Proceeds—For
A-2.
"
INSURANCE
LIFE
CALIFORNIA
OF
Waggener
'
13,
on
.
MUTUAL
CO.
-
j'i Registration Statement No. 2-5167. Form
,C-1. (6-29-43).'
Amendment filed July
1943.;
PACIFIC
*
will
of
be
Of $1,899,682 For Six Months Of 1943
p.m.,
;7.
*
certain
any,
company,
the
of
12 Federal Home Loan Banks
•
•f'
7 7"
rule of
underwriters
of
to
if
pay
general
To
bidding
Names
by
supplied
(6-25-43).77:,7'7■ :■; ■'.77"';'77'"7.'
Registration
statement
effective
5:15
.
Proceeds—For-investment.
be
A-2.
,
Offering—At market.
Lake
Wyoming.
Offering—Offering
>
7
competitive
sale
the
To
Salt
a public
utility operating in
Idaho, northern and central
southwestern
supplied
will
bonds,
redemption
''jKEYSTON^^^
Keystone «.,•■*: Custodian
the
be
.
—
Interest
1973.
Building,
7'7. 7;: 7:-v:fv;^-v7 ,;7:,
Commission.
gold
the
and
and
amount,
following purposes:
principal and interest to matur¬
ity, as the case may be, on Utah com¬
pany's 30-year first mortgage 5%
gold
bonds due 1944, of which $28,119,000 face
amount
were
outstanding at March 31.
1943.
'
by amendment.
Kearns
issue
such
To pay
fered
..
Inc., is named sponsor.
for
Underwriting—The
bonds
will
be
of¬
for sale by the company
pursuant
face
$8,361,500 of Broad River Power
5%
5:30
Business—Is
principally to
102%
—
southeastern
Utah
-
Underwriting
Address
7
Offerings-Price to public will be supplied
by amendment.
1,
effective
1943.
Series due
rate will be supplied
ment.
Proceeds—Will
16,
issue "
from
$3,500,000 face amount of serial
notes, and
eral funds
Utah Power & Light Co. has filed a reg¬
statement
for
$37,000,000 first
a
Underwriting—Tellier & Co., New York,
is principal underwriter.
corporate purposes.
•
'
77—. ,y.;
Proceeds—To be applied and used for the coupon rate.
••I - Registration Statement JSTo. 2-5138. Form
any of the proper corporate purposes
as
s-i. (5-i2-43>.
■
7
; "
its
board
of
directorsX may
determine. STATE OBOND & MORTGAGE CO.
". Amendment
filed June 16, 1943, to de¬
Statement says it is the purpose and ob¬
State Bond & Mortgage Co. has filed a
fer, ei t ecu ve date.
»'
jective of the management to be free at
I ■-■;. j
7. C<'
'77Uv ■ 777-tl,
■registration statement for investment cer¬
all times to take advantage of any conditificates, Series 1203, in the amount of
ition or set, of circumstances which, in its
$500,000.
'
'
Keystone * Custodian
Fvirids,' Inc.,'- has opinion, offers opportunity for profit to
Address—26yo North Minnesota Street,
.'filed a registration statement for 100,000
the corporation. *.
'
•,
"
7.7v;: New
Ulm, Minn..
shares pf full certificates-of participation,
Registration Statement No. 2-5155. Form
Business—Investment company.
Keystone, Custodian Fund, Series "B-2". 7, 8-2. (6-18-43).
Offering—At 100. 7
:
v7;.<
f ■■ Address—50 Congress Street, Boston. ;"7
Registration'1 statement
effective
but
7 Underwriting—No underwriter named.
Business-—Investment -trust.' )yZ
apparently defective 5:30
EWT.
Funds,
statement
July
on
from
banks of
istration
public utility operating
in South Carolina. -7 7- V
.,v7
Underwriting—Bonds will be offered for
sale
at
competitive bidding.
Names
of
April
ceived
UTAH POWER & LIGHT CO.
Columbia,
Street,
'.■■ 77,-'.
;■
EWT.
with
Northwest¬
eral mortgage serial bonds of
Utah, due
serially 1S49-1953; $3,500,000 to be re¬
(6-19-43).
Registration
Co.
and sale of $3,500,000 face amount of
gen¬
are
operating capital and security.
Registration Statement No. 2-5157. Form
has
together
from
Insurance
of
value,
Address—19-21 Dover,Green, Dover, Del.
Electric
Moines
,
Gas
p.m.
.
;,:7
underwriters
received
Life
at
«
sessable.
$3,000,000 of^open
&
No
—
proceeds,
to be
Mutual
ern
Proceeds—Proceeds from sale of common
stock
will furnish to the company both
supplied by amend¬
7-''7^7'
77 /7; ,-7
Address—328
registered
Ventures
Oil
A, due
account inLight
Co.,; $4,750,000;
to partial
payment for
Iowa properties of
Iowa-Nebraska Light
6 Power Co., $1,000,000 and for other
and
ttebtedness
Underwriting
Proceeds—Net
$3,500,000
named.
.
Main
ment.
3,000 shares of Class A capital stock, withiOUtv par
'fate -umaUnt pf ! general
Electric
will
due
OIL VENTURES CORPORATION
jt6'^lhb'.!Purbti'a$e^fr6m iTUinqiq\Iq'wavPd.wer' ^'Business—^Organized
1955,
rate
amount of
;;
7.
registration statement for $20,000,mortgage bonds, series due 1973.
a
mortgage
loans
effective
3:30
of 5:30 p.m.
as
-
first
Interest
the
'
V
C-l.
sale of
portion
filed
registration
[' .Registration Statement No. 2-5164. Form
Ids Light Co. and Des Moiries Electric Light
Illinois Iowa Power Co.
Proceeds
bank
of
date
-
investment.
Proceeds—For
Co. from
ifrom the
registration statement for
a
Offering—Effective
interdependent transactions
the
acquisition by Con¬
tinental Gas & Electric Co. pf Iowa Power,
Ja
Corpora¬
16,631 shares of National Securities Series.
Address—120 Broadway, New York City.
Business—Investment trust.
Offering—Price to the public will be
supplied by amendment.
1 ''
7
:7; ■
'
Proceeds—Bonds are to be issued as part
of
filed
has
tion
77- "7 7 "
amendment.
CORPORATION
k
,
include
Carolina
South
S. C.
-77
be exercised by that company.
Offering—Common stock will be offered
to retail druggists at $50 per share.
SOUTH CAROLINA ELECTRIC & GAS CO.
000
SECURITIES & RESEARCH
NATIONAL
Underwriters will be supplied by post effec¬
series
date,
effective
July 5, 1943.
Business—Is
^Underwriting—-Bonds
a
\
!
Registration Statement No. 2-5163. Form
C-l
(6-28-43)
' *'
■' 1
' •
Amendment filed July 16, 1943, to defer
joining counties.
of
:
fund.
trust
Proceeds—For investment.
in Central Iowa, and furnishing
gas service in the City of Des Moines and
environs, and in two municipalities in ad¬
■which
statement
1943,
p.m. EWT. on July 9,
•v
(counties
1
Registration
Re¬
EWT.
the
outside the City of Des
and in 12 contiguous
Moines and environs,
tive
&
Corporation, sponsor.
Offering—Will be continuous and the
offering price will vary with the value of
a share, which value In turn will vary with
the value of the underlying securities in
will
(5-21-43).
*
;
Polk .County,
Underwriter—National' Securities
,•
S-l
search
7:7.;77;;
Avenue, Des Moines,
Iowa.
jlri
,000 face value of such bonds.
Registration Statement No. 2-5144. Form
■!
Light Co; has' filed *'•
registration'statement;' for' $17,000,000 first;
mortgage bonds,
series due June 1,
Power
.Iowa
«
327
ing, Chicago, 111.
Copies of this
interesting mem¬ interesting memorandum may be
be had from Shas¬ had upon request from Kneeland
Company upon request.
& Company.
'
,*w
'
vp vrfpwrtui
1
j.' wit
ifr^v^sntn ¥. •wy^ y^
»
"
ai"*wifrw«*!»«w)j
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wft
■uuxr-nrr-ti
THE COMMERCIAL &
328
Vv
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
Markets
Firm Trading:
all issues
with
stocks
4
y
Missouri Pacific
...
post-war
Bendix Home
■
rARL MARKS & r.O- '«<:■
New York 4, N. Y.
:
v"'-'
to public will be best served by a
meet stringent conditions both as compulsory
regulation that
all
to
capital and reputation, and transactions in securities be han¬
during his membership he is sub¬ dled on designated, properly su¬
ject to rules and regulations for pervised exchanges and that va¬
fair play and honest dealing.
rious issues, not already listed,
"Despite all this, under exist¬ should be allocated to such ex¬
ing regulations by the Securities changes in accordance with the
and Exchange Commission, he can location of the issuing corpora¬
not buy or sell any security on tion.
'
'
1
the floor of
*
man
a
Exchange that is
our
registered with the Commis¬
(with few exceptions—in the
case
of unlisted
trading privi¬
sion
Y
leges and exempted securities).
"For instance, such purely local
securities as Maryland Casualty
this
"If
done,
were
stock
traded
on
business
of
volume
under their
lie
"Whereas,
that
sion
affiliations
or
"I
hope
comes
may
Teletype
'CL"
you
supervi¬
trade in
securities, without a record,
anywhere in the community. He
can
buy at a price and sell for
ANYTHING he can get, or he may
sell first at a high price and then
such
in
your
"If I
own
can
answer
philadelphia
NEW
Bell
telephone
Enterprise 6015
Now Available
'
St.
Red Rock Bottlers
Teletype
new
1 -57ft
york
Air Communications
have
built
not
could
turers
'
-
shoe
make
for
40
*
first call on
pany's message is signed by Frank
*Utica & Mohawk Valley Ry
4V2-41 y-.
•
Rand, Chairman of the Board,
and
Byron A. Gray, President.
C.
The International Shoe Co. sales
Roberts, John¬
branches include:
they
manufac¬
&
son
shoes
Rand;
^Consolidated Dearborn Com.
Freidman--
Peters;
manufac¬
Shelby; Hy-Test (Safety Shoes);
Vitality Shoe Co.; Queen Quality
Shoe Co.; Dorothy Dodd Shoe Co.;
Winthrop Shoe Co.; ■ Continental
Shoemakers; Conformal Footwear
turing millions of shoes annually
Co.; Pennant Shoe Co.; Jefferson
for
Shoe
more
they willing
which the
were
to disregard
International
quality
Co.
Shoe
While
is
the
not
and will
is
company
do.
not
armed
our
forces, there is still
quantity of good, ser¬
sufficient
viceable
the
shoe
civilian
to
essential
meet
requirements.
"President."
j
The
com¬
Shoe
Shoe
and Metro-Craft
Co.
Southern Traction 5/50
Co.,
.
Y
-
Interstate
Co.;
-vY'YY
Shoe
-
V'
*Circular available
;
Blair F.
Member
purchase or the sale,: and the
buyer and seller have no way
of knowing the difference in the
way
of profit made by. such a
broker.
Stimson
For War Conferences
Secretary
of
War
Few
cope
L.
Henry
such
a
trans¬
transpires when
a legiti¬
The broker hav¬
ing the selling order offers the
security and such offering, known
security is carried to
a
mate
exchange:
the
to
all
is
passed
members
of
members
the floor,
by
airplane on July
conferences
civil and
the
the
war
that
the bid and offer meet at a given
Stimson's
first
United
on
reason
importance"
his
to
entered
troubled
at¬
was
coming.
:
There
record
a
,
immediately
there
and
carried
and
in
that
the
afternoon
local
it
is
newspapers
On
ing
it,
number
Lt.
Gen.
permanent record is in the;
of the Exchange for any¬ commanding general of the Euro¬
body to inspect through the proper pean theatre of operations, and on
channels.
The commissions are July 13 was a. dinner guest of
a
"It is my
and
:
available
to
was
an
understanding that the
With Dempsey-Detmer
formed with the primary
(Special
to
CHICAGO,
Fritz has
Financial
the
ILL. —Norman
became
j
Chronicle)
associated
with
as
war
a
year
or
so
Some esti¬
output
for
years
run
postwar
seven
million units
a
compared with 4.5 million in
good year.
it
is
considered
that
a
Flying Fortress consumes 245 gal¬
lons per hour and that the trend
larger planes than this,
it is easy to imagine the enormous
quantities
of
fuel
that
will
be
Dempsey-Detmer & Co., 135 South
consumed
by
commercial
air
Street, members of the transportation
alone
when
the
is
Chicago
Stock' Exchange.
Mr. war
over..
Also
increasing
Fritz was previously with the In-; quantities of
petroleum will be
dustrial National Bank of Chicago.
required
for
making
synthetic
La
Triumph
Salle
Expl osives
rubber,
index
many,
.
—
Sold
—
Quoted
Bank and Insurance Stocks..
304
Calendar of New Security Flotations 326
Canadian Securities
313
Investment Trusts
-
,....
323
Municipal News and Notes'....,,..., 324
Renort............... 304
Our Reporter On. Governments
318
Our Reporter's
HAY, FALES & CO.
t-'
Members New
York Stock Exchano*
Railroad
Securities
71
Broadway N. Y. BOwling Greeo 9-7027
Bell Teletype
NTT 1-61
301
Real Estate Securities
Securities
Salesman's
Tomorrow's
Says
325
corner
alcohols,
plastics,
and
other items which have
-
320
Markets—Walter Whyte
313
been produced exclu¬
sively by chemical manufacturers.
By the time postwar demand
begins to get in its licks, crude oil
prices will have moved
to
the
peacetime high of
barrel compared with the
a
$1.17
now
crease
up nearer
record
$3.00
quoted.
And
this
in¬
is certain to pass along to
refined products in time.
COMMON
.
-V
-
■
^
■;;
Bought—Sold—Quoted
Analysis upon Request
Longmire, McCulcheon
Qisil V-Fand To Return
Because
T. J. FEIBLEMAN & CO.
Membets'New Orleans Stock Exchange
New York 4
41 Broad Street
BOwling Green 9-4433 Tele. NY 1-493
To Private Business
R.
John
Executive
Longmire,
Howard
of the U. S. Treasury
Victory Fund Committee in the
Eighth (St. Louis) Federal Reserve
District, and John D. McCutcheon,
Burgwin Forms
Manager
Assistant
have
Executive
>
Manager,
resigned to return to
their
Own Investment Firm•
PITTSBURGH, PA.
J.
—
Howard
Burgwin has formed Howard J.
Burgwin & Co. with offices in the
Trust Building to deal in
private business connections, it is
announced by Chester C. Davis,
President of the St. Louis Reserve
Union
Bank.
ner
Longmire, who has served
in the post since June, 1942, is a
partner of I. M. Simon & Co., St.
Louis, while Mr. McCutcheon re¬
sumes his place with John D. Mc¬
Cutcheon & Co., Inc., St. Louis.
The latter also has served since
securities.
investment
win
was
in
for
many
Mr. Burg¬
years
a
part¬
Phillips, Schmertz & Co.
Mr.
June, 1942.
A
liberal dividend payer
NO BONDS
-
NO PREFERRED STOCK
Petrolite Corp.,
Ltd.
Dividends 1931-1942 averaged
heretofore
Page
Bought
BOTTLERS
recommended.
promises to be well
average
is toward
S.
many
operation
the
after
two
as
When
Securities and Exchange Commis¬
sion
year,
Prime Minister Winston Churchill.
-j
—
first
as
in
automobile
of
high
as
be
of prewar.
excess
the
books
fixed, printed
anybody.
•
RED ROCK
in reconverting
many
;
not
within
but
mates
will
as
immediately preced¬
were
the
in
12 he conferred with
Jacob L, Devers, U. S,
July
burden¬
of
automobiles
.
ticker
\
•
will
civilian
spect American troops, airdromes
surplus
Beach
the petroleum
conditions than
peacetime basis.
a
by
other lines.
During his stay in the British
Isles, the Secretary planned to in¬
and
fected
1-2178
promising postwar prospects or can
more
industry will have little or no difficulty
facilities
some
:
the transaction is ef¬ and other installations. On his
is made in the
way
to ^Britain,
Mr.
Stimson
books of the Exchange, the trans-,
stopped off at Iceland to inspect
action is printed on the local stock
troops there.
: ;
price
Miami
Refinery capacity has been greatly
increased
and
refining methods^improved over the past year or of the growth possibilities and the
inflationary
hedge
two, but, according to estimates impressive
of
fuel requirements
after the features, the oil industry is one
war,
the industry will not be in which investor participation is
Dec. 7, 1941, and for
military officials said
"great
tached
States
have
easily with inflationary
The oil
to
visit
industries
more
operations to
American theatre of operations
an
since
this
by telephone and the broker who
has the buying order makes his
bid in the same manner.
When
11 for im¬
with
high
military authorities. This
Mr.
was
of
offices
the
to
in Great Britain
portant;
the ticker tape or
out
over
NY
Pittsburgh
Harrisburg,
Syracuse,
Industry Has Impressive Outlook
industry, says the United Business Service in a special study re¬
leased July 19.
'
arrived
.
Oil
Stimson In Britain
compare
Exchange
Stock
Tele.
Whitehall 3-0550
New York
around, replace his securi
ties without a record of either the
"Now,
request
on
Claybaugh & Co.
Philadelphia
shop
action with what
:
Rochester Transit Common
Co.; Sundial Shoe Co.; Great
Northern
available
material
trade
Ft. Dodge, Des Moines &
years.
Government has
our
Y';v
-
states that
other
as
BONDS
rigic<$>
standards, but that
good, dependable
to be had by civil¬
company
well
that
to
-
/;"
The
maintained
mean
ians'.
as
been
explains
company
are
System Teletype NY 1-2218
BUY WAR
/
statement, appearing elsewhere
"Chronicle," the International Shoe Company
a
vital message to all shoe buyers. that
is not lowering the moral standards of its products-
which
not
New York 5
Street,
Telephone WHitehall 4-7970
Bell
Civilians
to
Pine
30
the
materials,,
shoes
.l\:
L. D. Sherman & Co.
Vital
broadcasts
Louis
company
does
"HOWARD R. TAYLOR,
General Aviation Equipt.
unusually printed
of
issue
Government
a
yours,
rather
a
this
in
Y
1-1397
Kellett Aircraft
"
YORK
Message To All Shoe Buyers To Correct Mis¬
understandings Regarding Quality of Shoes
The
glad to hear from
"V"Y'->y:
"Very truly
you.
Y.
N.
Y'YY Vicana Sugar
Association
Largest Manufacturer Of Shoes Issues A
shoe
questions,
any
The
the
community.
I shall be very
HAnover 2-8780
4
•.
Dealers
Keeping Faith With Shoe Buyers
standards
the Congres¬
will have an
during
recess
Dealers Ass'n
Y. Security
Great Amer. industries
of
fly-by-night opportunity to study this situation
any
Security
STREET,
2-3600.
REctor
In
jurisdiction, the pubbe 'safeguarded
by
would
sional
;
broker without adequate
telephone
in
knowing at all times what a se¬
local Exchange
our
for the above reason.
York
NASSAU
45
ex¬
throughout the country
would be keyed up to handle the
changes
Drydock curity is worth and what it last
Company, Maryland Trust Com¬ sold
for, and new companies seek¬
pany,
Maryland Life Insurance ing capital would have little dif¬
Company, Baltimore National
ficulty in securing proper and
Bank, National Bank of Balti¬ conservative
financing which is so
more, Baltimore & Annapolis RR.
very vital to the continuation of
Co.,
Baltimore
Life
Insurance the American Government.
Company and many others cannot
Company, Maryland
be
Members N.
has
not
Common
M. S. WIEN & Co.
request
on
incorporated--
'
New
;
old, during which long I object of protecting the public and
the result is that it is doing noth¬
period of time it has enjoyed a
responsible and respected posi¬ ing of the kind.
tion in this community.
To be¬ < "It is my judgment that the
member,
'
'
•
Members
.
is 105 years
a
&
Pfds.
Kobbe, Gearhart & Company
Urges Abolition Of Over-the-Cosnter Markets
come
Old
25 Broad St., N.Y.
Information
y
Western Pacific
Corp.
Majestic Radio & Television Corp.
SPECIALISTS
(Continued from page 298)
Chicago, Milw. & St. Paul
Laboratories, Inc.
FOREIGN SECURITIES
•
Chicago North Western
small
Appliances, Inc.
Allen B. DuMont
.
50 Broad Street
the
in
prospects
Aeronca Aircraft
••••-.
•
Thursday, July 22, 1943
Aeroplane,
Home Laundry, Electronics and Television fields,
selling between 4 and 6l/2.
FOREIGN SECURITIES
'
FINANCIAL CHRONICLE
Robinson-Duff To Admit
shortly
be
Jr.,
Snedecor,
admitted
will
to partner¬
ship in J. Robinson-Duff & Co.,
61
Broadway,
New
York, City.
Mr. Snedecor will act as
on
the
floor of the
alternate
Exchange for
Vincent H. La Frence.
$1.82
per
than
George
11%
share
on
or
more
present price.
Memorandum
on
request
Hill, Thompson & Co., Inc.
Markets and Situations
120 Broadway,
Teh REctor 2-2020
for Dealers
New York 5
Tele. NY 1-2660
,
@FedFRASER