Full text of Commercial and Financial Chronicle : July 29, 1943, Vol. 158, No. 4198, Section 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

.

JUL 3 0 Mo

1)08. K°*'
UBraB

Final

Edition

ESTABLISHED OVER 100 YEARS

In

2 Sections-Section

1

o/nmetciai an

■>

Reg.

Volume

158'

Number 4198

New York, N.

AlfredMarchevHeads President

Republic Aviation
Alfred

Marchev
succeed

Constitutional

Ralph S. Damon

poration,
rmingdale,

a

New

Amendment Required,

The

Mr.

chev

was

nounced

21,

s

made

:Mr.

of

New

Constitution.

our

Constitution

bearing •?

public.

time

joined Repub¬

f

Februa'r y,.
as

the

recent

The

President

and

Early this

year

was

gressional de¬

elected to

bates cited by
Prof. Spahr

the board of directors and

tions of the

Special

taining

June

editorial

to

opera¬

y

and

starts

per¬

LOAN

on

page

Minnesota

of

between

is

featured this week.

which

State

J

'

•

Dr. Walter E.

v

.

Spahr

De-

commitments

rather

by agreement,
by treaty."
In the

than

debate

For index

see

423.

page

;

other

than

United

tion

the

States,

President

Securities* &

though

our

forecast would be

Generally,
judgment

we

of

1934

(Continued

time

this

gives

on

confidence

us

the

were

Act

in

our

dur¬

different

ing

the

war

period.

We

must base

our

opinions

o

prob ab.il ities

more

upon

possible

e

t

x

r

a

n

and

eous

i

s

d

-

in¬

tangible

W

there

f >"

market

stock

of the intent of

aware

to

and

point of view.
The
problem is

Exchange Commission has

keenly

solidly

conditions;

fresh in the minds of the Com¬

were

V7

conr

e

tions.

a

-

After;;

the

de-

long
cline
fr

Dr.

Wm.

Edwards

ma|,e

1

p

ment

e

t

the

e;f.

e"

re-

.

4 With

bargains, the risk of lqs9:was

ciation

an

auction

market;^

were

age yield was

highland

."We'S^iq

^13)^ |

-A''.-'-. •' \

With the
passage
sonnel

of time,and with changes in the per-,
pf. the Commission,,the SEC's attitude towards this,

-m(Continued

-

on

pag(e 410).

.

^

^• j

r

THE

CHASE

NATIONAL BANK
OF THE CITY OF NEW YORK

NEW YORK STOCKS, INC.

■

Bond

MANAGEMENT PROBLEMS
v.-U-'v-y.**

FINANCING and VALUATIONS

WAR BONDS

OIL SERIES

-

$,i *

<•

*
.

NEW YORK

SanFrancisco

Established

1927

Pittsburgh

": Prospectus on

Request*

JHUGH W. LONG and (COMPANY

Williamsport

r

'-N

INCORPORATED

•

,

^

IS EXCHANGE PLACE " 634 SO. SPRING ST.
(

LOS ANGELES

; JERSEY CITY?

Broaden your customer
-i,!.

vAw.

J'

if,V

service with Chase

^ f'!

;

and Dealers

Members New

»

,

Tel. DIgbjr 4-8400

Dallas

facilities

New York 4

lUmber Federal Deposit Insurance
k

'

..Corporation

-

.

u

Tele. NY 1-733

I,,:

Light

Actual Trading Markets,

alway£

■

$6 Preferred-Common "wi'

v-'i

thru finest contacts in

Federal Machine and:

,

Welder Co.

•

♦

i

.

•'

^

:

Over'The-Counter
Securities

,

Hirsch, Lilienthal & Co.
Exchange

,

3 •;./

' '

"

London

NEW YORK
25 Broad
II An over

-

Geneva

4, N.Y.
St.

2-0(500

Teletype NY 1-210

-INCORPORATED

Rep.

Members

N.

3, ILL.

So. LaSalle St.

State

upon

f

request

,.

8770

Teletype CG 1219




Y.

Security

45 Nassau Street
Tel.

REctor 2-3600

Philadelphia

Dealers

'

Ass'n

New York 5

Teletype N. Y. 1-576

Telephone r

' Enterprise 6015

/'

.

V4-

'
J

•,,

•

■1

•'

''

-

-

-

HART SMITH & CO.
REYNOLDS & CO.

Members

,

CHICAGO

135

Report

i

Kobbe, Gearhart & Co,

Exchanges

Preferreds

'

Basic

Members New York Stock

%

Exchange

York Curb Exchange

30 Broad St.

• ■1

ent

corres

H ardy& Co
i Members New York Stock

r

;

.for Banks, Brokers

w

>;•

v
INVESTMENT SECURITIES
64 Wall Street, New York 5 v \
BOSTON
1
PHILADELPHIA
Troy
" Albany " ~ Buffalo
Syracuse
,

^

it.-f\

.

'lU^ii,

^

:

R. H. Johnson & Co.

.'•

52 WILLIAM STREET

Brokerage

Service
''

:

ENGINEERS and CONSTRUCTORS

other

.;

^ye:r?

(Continued on'page

V

:

for^p|re*;

substantial; the

REPORTS

In connection with '

and

v

.—

through^ 194r-

had

mark

were
few admissions to unlisted
trading
the members of the Commission were at that small,(the possibilities

as

quite conscious of the

suited to

412)

on page

cor¬

,

bind the

can

as

anchor

can

quite

economic

longer-term

original Securities Exchange Act of 1934 provided
for .the termination of unlisted
trading privileges on ex¬
changes, and these privileges' were-to expire June 1, 1936.^
However, after investigation by the SEC, this portion of the
Act was modified so as to
permit continuance of unlisted
trading privileges and the admission of additional securities
to this status, but
only under carefully circumscribed con¬
ditions.;.- During the years
following the amendment of the

with ratifica¬

by the Senate,

AND CONSTRUCTION V

Power &

move-

doubtfu| nature "of the unlisted
trading privilege device, and Jthe-injury to the
investing
public which resulted from exchange
trading in issues not

Government of the United States

Chicago

the

Vandenberg, that "categorically, I
say,
of course, that the
State. Department,
and no one
else

SURVEYS AND

rect.

forecast

to

privileges

the

QUICK ACTION ON DESIGN

tempting

the view was
expressed
by Senator Connally, in reply to
a, specific, question
by Senator

should

[.'

•

—

ment of prices and then invest

The

partment is entitled to go In mak¬

ing

the

the Act.

Sen¬

berg and Connally regard¬
ing "the exthe

which

missioners, and they

ators Vanden-

to

investment

the

Proposed Role X-3A12-4

sequent amendment,:

those

were

tent

material

SAVINGS

State

The

of all

compafriy:^ ^

ASSOCIATIONS
414.

on

appointed Executive Vice-

President in charge

C.on-:|

Manager.

General

he"

"

,

supervising

funds in common stocks, our
problem is much broader than at¬

exchange trading versus over-thej counter-trading has undergone gradual modification since
J the middle 1930's: During the early years of the SEC, the
investigations of this problem which had taken place in
connection with the
writing of the 1934 Act, and its sub¬

in'

Congress.

Alfred Marchev

ing" Vice-

was

e

debates:

t h er eon

Presiden t,
later
becom-

1

t h

In
of

travelled in recent years. The Commission's attitude towards
the whole problem of

sional Record"

assis¬

tant "to

m.~

Edwards, economist with Naess and Cummings, speak¬
meeting of the New York Society of Security Analysts,

basic

road

"Congres¬

r o

a

the stock market outlook and investment policy, declared:

;w..p:This proposed rule represents another milestone

same

quotes

lic Aviation in

on

our

the

on

and

powers,
at
the

ing before

a

——

treaty-making

was

Marchev'

1942,

Dr. W. F.

York

In
taking up the issue, Prof.
Spahr submits provisions of the

e;

time ; *M r..
Damon's
res¬

ignation

Money

.

amending

at
m

Economics

Policy

Completing Three-Quarters Of Possible
Distance Between War Market High and Low
Urges Caution In Handling Investments

University, to the fact that
cognizance has been accorded the propriety of the United
States to participate in such international
banking plan without

July
a

of

little

an¬

1943,

the

Professor

Mar¬

Copy

a

Sees Market As

respect to the discussions of the Keynes, Canadian, and
Treasury currency stabilization plans embodying provision for a post¬
war international bank, attention is drawn
by Prof. Walter E. Spahr,

election

f

And Investment

Says Dr. Spahr

Under Constitution To Fix Value of Our

Cents

60

The Stock Maiket Outlook

With

York.

0

Price

Y., Thursday, July 29, 1943

Cor
F

Office

Treaty Making Powers and Responsibility of Congress

President of Republic Aviation

as

Pat.

Cannot Commit U. S.

September

on

T-ASj.

S.

To Post-War International Bank

Corporation
1st will

U.

Members New

120

York

Stock Exchange

Broadway, New York 5, N. Y,
Telephone:
Bell

; New York Security Dealers Assn. v
52 WILLIAM ST., N. Y. 5
Bell

REctor^ 2-7400

Teletype

NY

1-635

New York

HAnover 2-0980

Members New

York Stock Exchange
e.-V>

Teletype NY 1-395
Montreal

ira haupt & co.

Toronto

111 Broadway

REctor 2-3100

Teletype NY 1-1920

:

402

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, July 29, 1943

.Trading Markets in:'.
We Maintain Active Markets

Republic Natural Gas
Common

R. Hoe & Co.,
1

*

CANADIAN INDUSTRIALS

~

Com.

>

,,

Members

40

New

York

Dealers

Security

Members N. Y. Stock Exchange
Telephone BArclay

TELETYPE NY 1-423

Cons. Machine Tool, units
Du Mont

Labor.,

new

Ft. Dodge, Des Moines & Sou.
Bonds

Axton Fisher

Pittsburgh Hotel 5's, 1962 & 1987

Washington Prop. 7's, 1952 & Com.

or

well-informed

Members

120

Company

Baltimore

Stock

Exchange

Broadway, N. Y. 5, N. Y.
WOrth 2-4230

Bell

Teletype N.

New

York

New

120

Stock

York Curb

25 Broad

Exchange

New

Tel. REctor 2-7815

Actual Markets in

Promotion En Army

V Colonel

•

of

World

War

I

as

to

was promoted
grade of Colonel effective
10, 1943.

the

He-

IN

should have a full knowledge from ; Deputy
flexible program constantly in the processes Chief to Chief
readjustment to meet changing economic and political conditions of the Move¬
and expectations.
With a thorough knowledge of inflation and defla¬ ments-Branch,
tion conditions, and their effects^
Mobilizat i o n
upon
business and finance the in the "Commercial and Financial D.i v i s i o n

July 8.

and investor
can
blueprint for a flexible

31

New

York

Curb

Nassau Street

was

Chronicle"

to be

have

comments

hand regarding the

of

expected,
come

views and

conclusions drawn by Dr. Wright

Exchange

Vanderhoef & Robinson
Members

"The

in
As

numerous

to

N. Y. Curb

Chronicle" of the

New York 5

Telephone COrtlandt 7-4070
Bell System Teletype NY 1-1548

July
dated

that
in

this

our

issues and

be

can

Some of

given in

were

15 and July 22

others

barn

issue

Byrndun Corporation

HON.

ALF

Common

Common

&

given

are

Inc.

turn

been

120

.

' "f

.

Retail
/

,

1952

You

hefty
lar
.

conception of hedges

Properties

It

6s, 1959

-

i 11

Struthers Wells
Common

&

against

inflation.*1^,
is

1949

u

1

a

Street, New York 5
Telephone: WHitehall 3-1223

as

condi¬

Bell

dividual initiative,

Government

The

make it clear that

will

we

tain sound money; the
dard will be restored

be

can

fictitious

no

main¬

gold stan¬
and

be

dollar

paid and

any

of

debt

(3)

All

Government

absolutely
eliminated

and

the

holds

o

write

Vertientes-Camaguey Sug.

should

i

.

'J

,

"removing the
Which

•

,,

•

with

.create

these unsocial characters is,most
Therefore what should

difficult."

&TeeT\e<mdCompaTiij
Members

37

Wall

N.

Security Dealers Assn.

Street, New York 5, N. Y.

Tel.
Bell

Y.

HAnover

Teletypes—NY

2-4850

1-1126

&

1127

(5)The

Government be doing now to pre¬
vent their creation?

Editor's Note:

Dr. Wright's re¬
ply to Mr. Landon's letter follows:

My dear Mr. Landon:
.

I thank you for your
very good
of the 13th re. my article

the

(6)

tax' system
a

should

be
larger part

additional

The

banks.

bond

sales

should

large hold¬
bonds in the

present

of short-term

refinanced

be

into

long-term investments and sold to
investors.
'< ■. ,:-0
■
'
*

strong organization of
experienced financial men should
(7)

be

Frank

to

joining

the

SEC,

Mr.

Prior

A

.

.

After

en¬

set

up to cooperate with the
(Continued on page 418)

\

6

.

&

bought

Gas

Midcontinent Airlines

Queehsboro Gas & Electric, Pfd.
American Utilities

Associated
Electric

Crowell Collier

Service, Pfd.

Bendix Home Appliances

-

Bond, Goodwin & Tucker, he
,

with

William

R.

Staats

was

Co.,

a

partner in F. E. Harris & Co. and
later

connected

was

with

other

firms.

Members New York Curb Exchange

65

Broadway

Bell System

South Shore Oil

i—mbbbp—■ ii

N. Y. Title and Mtge. Ctfs.
Series C-2 Interesting
J
41

Broad

have

Street, New York City,

prepared

series
cates

H.

Rothehild

C-2

analysis

an

first

by

Co., *120
Broadway, New York City, have
study of Seaboard Air

a

Line, which-they believe is es¬
pecially timely in view of the
final report of the Special Mas-i
ter's

plan

Seaboard.

for

Mortgage Co.

York

Title

Stromberg-Carlson

Copies of this analysis

may

from
upon

be

Seligman, Lubetkin

Position Markets:

&

excess

G. A. Saxton & Co., Inc.
1170 PINE ST.,

11

N.

Y.

5

Teletype NY

WHitehall 4-4970
1-609




Waho
Established

1926

Direct

Wires

&

Co.

Members New
to

BOSTON

—

Bell

York Security

HARTFORD

—

2-8700

Teletype NY l-128'8
Dealers Association

PHILADELPHIA

(

or

bank loans.

1943.

U. S.

Earnings

Tele.

NY 1-210

Radiator, Pfd.

.

Virginia Public Service, 6% Pfd.
York

Request

Corrugating

T. J. FEIBLEMAN & CO.
Members

New

Orleans

41 Broad Street

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

;

Finishing, Pfd. & 5's 1844
U. S.

of $9.00 per share
on

Sulphur, Pfd. & Com.

Nu-Enamel

Members New York Stock Exchange

2-0600

'

Liberty Baking, Pfd. & Com.

SIMONS, UNBURN & CO.
HAnover

re-,

Columbia Bakini;, PfiL & Com.

Accumulations $17.50 per share

April 1,

upon

Galveston-Houston Co.

FASHION PARK, Inc.

1942 in

of

Ampco Metal

120 Broadway, New York
REctor

had

Carey Trust—All Issues

request.

Descriptive Circular
Phone:

be

quest from L. H. Rothehild & Co.

&

■

had

of

reorganization

Copies of this interest-*
may

of

mortgage certifi¬

New

j

&

originally issued and guar¬

anteed

;

L.

Seligman, Lubetkin & Co., Inc,
ing study

as

Missouri Kansas Pipe Line

WHitehall 4-8120
Teletype NY 1-1919

Seaboard Reorganization
Possibilities Interesting

prepared

>'

No funded debt

York Corp.

; ^

quoted

Members New York Stock Exchange

$3.50 Cumulative Preferred

R. Mallory

pfd.

Edward A. Pureed & Co.

Jefferson Lake

Associated

7%

sold

tering the business in 1926 with

Co.

letter

New Eng. P. S. Plain
.

Staples

associated with the securities

was

Portland El. Pr. 6s, 1950

with

Dealers, Inc.

Airways

Portland EL Pr. Prior Pfd.

organization
of
New
Mr. Staples has for some
associated

4-7900

Teletype NY 1-1790

Braniff

J.

excess

The

banks

-

sion and the National Association
of Securities

the

should be to investors and not to

ings

the

the
Securities and Exchange Commis¬

be

of

with

been

years

not

purchasing power
flowing to war labor, Government
employees, farmers and businesses
directly and indirectly profiting
by the war spending.
I
•

conditions

Alf M. Landon

Sugar

Yorkv

pay¬

>

field for many years.

of

I agree

.

m e

follow.

Common

Meehan

'? ■'

costs

revised to drain off

ment

Common

Punta Alegre

association

it

costs

Building as se¬
regulation -consultant in

curities

efficiency.

think Govern¬

Stop Nut

Long-Bell Lumber
&

Banks-Huntley

held down to the maximum

war

briefly of the
policies
you

Common & Preferred

New

Staples has returned ' to
Los Angeles to open offices in the

will

should

necessary

1915

Dumont Laboratories

H.

ence

who buys

one

Government bond and

a

Bell System

LOS" ANGELES),• Calif.—Clar¬

inflation ~ any longer than
drain them out of our sys¬

Every

■

30 Pine Street, New York 5

To Business In L. A.

1

there

money; and

tem and get back to sound money,
and credit conditions..

(2)

Mayer & Co.; Inc.

Established

Telephone DIgby

and through the period of stabili¬
zation.

t

Robert C.

G^ Hi Staples Returns

should

absolutely
frozen
at
fair
and
equitable levels for the duration

time

the duration.

private enter¬

preciate it if
would
the

for

prise and the profit motive.
(1)

Spg. Brook W.S. Pfd.
Ohio Match

Col. Oliver J. Troster

Troster, Currie
Summers, New York, but is on

&

(4) Wages and prices should be

you

General

leave

'

Teletype NY 1-1843

Elastic

Spokane Int'I Ry. Esc. Recpts.
Scranton

senior member of

everything possible be

find

.

Deep Rock Oil Corp.

Troster,-is

recom¬

I would ap¬

.

V

Teletype NY 1-2361 '

Interstate Bakeries, Pfd.

Staff .Corps.
I C o 1 o n e 1

what, has

done to restore confidence in in¬

the

should follow.

20 Pine

undo

in honest dollars.

iv i d

d

and

ment

of

the

Nevertheless, we' cannot

minating

u

been

maturity will receive

policies a cor¬
poration or in-

H. G. BRUNS & CO.

has

until

article

Preferred—5V2S,

horse

very

a

Broadway, N. Y. 5, N. Y.

REctor 2-7634

8th.

done, but accepting
they are, I would

tions

we

Wright:
certainly swing some pretty
haymakers at the popu¬

the

back

credit

Topeka

Preferred

6s,

LANDON

Dear Dr.

Indiana Limestone
V

M.

'after

stolen.

will

.

"THE SHEETS"

In

accommo-

herewith:

W. L. Douglas Shoe

•'

Headquarter s,
reply to your questions as to Army Service
what policies I think the Govern¬ Forces. Ef¬
-

mend that

in this excellent article.
these comments

Exchange

•/>«•'■■■;'

A*

J-'-*;

t';-'

C. E. de Willers & Co.

-

Preferred
on

•
.

moted

pro

of

appeared

♦Traded

v

•:

SEE OUR LISTINGS

also

was

ment should follow, and what the
fective as of
Wright, Professor of Eco¬ Government should be : doing to July 18, 1943,
nomics, Brooklyn College, wrote prevent the creation of - these Colonel Tros¬
his article, "Managing a Business unsocial conditions, I am afraid ter ; was
deit
is
now
a
situation
of
un¬
for
tailed as a
Stockholders Through
the
Vicissitudes of Inflation," which scrambling the egg or locking the member
of

United Cigar Whelan

V-;

f7;

Lieutenant-Colonel

With the foregoing in mind Dr.

Preferred

*

a

Ivan

Taggart Corporation

.

Rails and Industrials

Oliver J. Troster, who

out

came

V«

'rj•'.V-*'•.

The management

policy.

6s 1952

branch offices

our

of what to expect and a

prepare a

"Interstate Power

.

0. J„ Troster Receives

management is

management

,

NY 1-1557

Orleans, La.-Birmingham, Ala.

Direct wires to

,

Y. 1-1227

St., New York 4, N. Y.

HAnover 2-0700

Exchange

Broadway, new york

-.l-Z:

the best hedge a corporation
its stockholders have against inflation and the
deflation.readjust¬

ments that follow.

Members New York Stock Exchange

Members

;

July

A

Steiner,Rouse&Co.

McDonnell

g||

Vicissitudes Of Inflation

Tobacco, B

Mitchell &

Walworth Pfd.

Managing A Business For
Stockholders ThroughThe

& Common

Fireproofing

v

NEW YORK 6, N. Y.
Teletype NY 1-672

7-0100

National

5s, 1952 & Common

and Other Principal Exchanges

115 BROADWAY

HA 2-2772

Birmingham Gas.

-•

Warren Bros. Class "B" & "C"

Goodbody <Sl Co.

Ass'n

Alabama Mills

v

.

1920

Exchange PI., N.Y.
BEIiL

Remington Arms

CANADIAN BANKS

KING

&

.

CANADIAN RAILS

Mid-Continental Airlines

Established

American Cyanamid Pfd.

CANADIAN MINES

Common

KING

\

Botany Pfd. & Common

CANADIAN UTILITIES

United Cigar Whelan

for

.

BOwling Green 9-4433
,

Stock

Exchange
New York 4

Tele. NY 1-493

Volume 158
The

CHRONICLE

William B.

Dana

'

j

A. E.

Seibert,

D.

active

trading interest in

Editor and Publisher

I,

Punta

William D. Riggs, Business Manager

•'

Thursday, July 29,

„

Published

twice

1943

week

a

(Thursday' (general

and ad¬

news

issue

NO. 1

,'Puget Sound Power & Light Co. 5% Preferred

*

■

on

ON THE

"BID"

PARADE

(When Issued)

Alegre Sugar

Vicana

a statistical
Monday] - < ■
,

:

West Penn Power Co. Common

Staley Mfg. |

Vertientes

[every

'

vertising issue) with
:

AND COMPANY

Public Service of Oklahoma 5% Preferred

<

♦

William Dana Seibert, President

kmmw

-

'■■■i-AjM

BEekman 3-3341

Herbert

Rockwood & Co.

i

|
Sprue? Street, New York 7
•

an

Rochester Gas & Electric Co. 5% Preferred

-

Company

Publishers

25

We have

Flour Mills of Amer.

Reg. U. S. Patent Office

,

403

COMMERCIAL and

FINANCIAL
j

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

Yessir,

Spencer Trask & Co.

Camag'y

certainly do

we

to grot yoti the

ble
and

"hid"

our

host prices possi¬

those little traded

on

stocks

bonds!

25 Broad Street. New York

Sugar

;

99 WALL STREET, NEW YORK

Teletype NY 1-5

•" Telephone HAnover 2-4300!

.

Telephone:

WHitehall

4-6551

Other Offices:

l'

Chicago—In charge of
Fred H. Gray, Western Representative,:
Field Building (Telephone State 0813 )V
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.

32

| S Copyright .1943 by William' B. Dana
Company.

Subscriptions, .in United States ^'and
Posessions, $28.00 per year; in Dominion
Canada, $27.50 per year; South and
America,Spain, Mexico and
$29.50 per year;: Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Central

Cuba,

.

■

William

P.

is

Neacy

now

as¬

advertise¬

Our

Real

Estate

Securities

Bond

has

specialized
for the past twelve years in:

jMunn's.

'Mr.;:'

Neacy

and

-

v

us for
quotations
A1:r'M.

New

York

Stock

to

;

was

Exchange

be

months is now
probable that the

indus¬

St., N. Y. 5

Tn

WHitehall 4-6330

Teletype

NY

William P.

J. H. Evans

Opens

f Own Firm In St. Paul
!
(Special

ST.

|

to The Financial

PAUL,

Chronicle)

\

Minn.—James

H.

Evans has formed James H. Evans
Co. with offices in the First

&

National Bank Building, to deal in
state

and

municipal bonds.

Mr.

-;

European phase of the war.
are several competent ob¬

the

There

the

that

believe

who

servers

Henry D. Talbot will become a

30

&

Stanley Gates

Co. for many years.

FIC Banks Place Debs.

i

An

offering of $35,130,000

con¬

,

solidated

debentures of the

eral

Intermediate

was

made

Credit

t

Fed¬

Banks

July

19, at par,- by
Charles R. Dunn, New York, fiscal

tion

of August 1st.
Mr.
a partner
in Bendix, Luitweiler & Co. and
its
predecessor firms and held
membership in the New York Ex¬
change. 'He will act as alternate,
on the floor of the Exchange for
Richard ^ P.
Limbiirg,another,
as

i

^agent for the banks. The offering
consisted of two

and

1944,

1,

$24,010,000 0.80%, due May 1,

1944.

Both

Attractive Situations..."

issues, viz.: $11,-

<120,000 0.70%, due Feb.
issues

dated

are

Blair
Wall

F.

Claybaugh

Street,

members

of

New

•

721

Co.,

&

City,

York

Philadelphia

the

Exchange, have prepared
interesting circulars on Ft. Dodge,
Des Moines & Southern Railway

Stock

Aug. 2,194?. Of the proceeds from
the

sale

of the

debentures, $31,-

105,000 will be used to
like
due

amount

of

pay

maturing

off

a

issues

Aug. 2, 1943, and the balance

,is for

new capital purposes.

At

the close of business Aug. 2, 1943,

,the

banks will

have

a

total

of

or

not Italy soon

the Allied

Nevertheless, ~ the
have suffered a tre¬
mendous setback
and the Axis
stock' has declined grievously. A
Swiss
cable
indicates r that * the
German mark in Switzerland has

a

1991 and common), Utica
& Mohawk Valley Railway (4V2S
(4s of

of

1941), and Consolidated Dear¬
(common), which the firm
believes offer attractive possibil¬
ities at current levels.
Copies of

born

circulars may-be- had upon

these

$297,150,000 debentures outstand¬

request from Blair F. Claybaugh

ing.

& Co.

:

^

begin to

HAnover

question.

opinion among ^neu¬
and business men
tends to regard the war outlook.
considered

>

financiers

tral

2-8970

Individual stocks will
even record new highs later this
year just as Wilson preferred did
yesterday and today. It is not our
opinion that a deep bear market
is

in the

offing.

cash, and the promise
war

Mokan
American Export Airlines

J.F.Reilly&Co.
/.

New

Ill

-

D-J

it is over the

industrial average

1943."

'

much

at any time in

REctor 2-5288

;

Bell

System Teletype, N.

Y. 1-2489 '

Gisholt Machine Co.
Memorandum

on

Request

Federal Screw Works
common

and rights

Stromberg-Carlson

c

Bartgis Brothers
Est. 1926

mar,
HtRWG&Co.m
170 Broadway
Bell System

COrtlandt 7-6190
Teletype NY 1-84

Central States Elec. Corp.

(Va.)

Common, 6% Pfd. & 7% Pfd.

Great American Industries
Greater New York Breweries

may-lose

as

months have elapsed from

Assn.

Broadway, New York, N. Y.

'

Attractive Possibilities
one-third of its 14y2month
advance.
This advance
The current situation in Red
amounted ^to 53 points.
A sur¬ Rock Bottlers, Inc., offers inter¬
render of one-third of this amount, esting possibilities, according to a
or
about 18 points, would bring circular being distributed by Hoit,
the average to approximately 128. Rose & Troster, 74 Trinity Place,
But this is a lev.el to be looked for
New York City.
Copies of this
as. the end; of the intermediate
circular may be obtained from the
move ^downward
after tyvo or
as

Members
Security Dealers.

investment policy.

would rather consider that the in-;
higher prices than
termediate trend has been re¬
versed and before

.

York

such

Moreover,
it is our view that the majority of
all stocks will, within one year
Tentatively, we
after all hostilities end, sell at
an

1-12M!

of the post¬

all militate against

era

Teletype NY

Federal Water & Gas

•

promise.

INC.

.

Argo Oil

Axis powers

from-a war

three

'

,

the market

>

gives

demands is still

discount the transi¬
to a
"In the above remarks, we do
economy
which will bring the
not
recommend that customers
post-war activity that commen¬ sell out
basic, well-selected, paidtators have been discussing for
for commitments with the object
the
past six to
nine months. of
replacing them at worth-while
Sooner or later certain stocks will
lower prices.
Tax considerations,
begin ! to
stand out for their
probable tax-legislation
trends,
greater-than-average peace-time the problem of what to do with
can

in the past was

partner in Stern, Lauer & Co.

.

"At some

members of the New York Stock

Exchange,

time off.
later time

still some

Stern, Lauer & Co.,
Street, New York City,

in

Pine

Talbot

v

writer concurs

"Whether

Admit Henry D.Talbot

,.E. Crummer & Co. and the Brown
and

European hostilities may end in
the next three to six months. This

Co.'s

Participations

14 peak, to about

Stern, Lauer Go To i

partner

Co.

<

from

to

Title

other

Broadway, New York, N. Y.

rate of decline
cannot continue. Yesterday's sell¬
ing was of climatic proportions—
the first selling climax since April
9.
We expect a technical snapback to develop in the next day

in

Ctfs.

this

with that opinion.
"Since the market has been dis¬
Co., the National City Company,
and Bancamerica-Blair Corpora¬ counting * > ultimate
victory iov
tion.
w;: pm.
<;; -vi
nearly 15 months and never dis¬ dropped 50%
in 'the last two
counts the same, thing twice over, weeks.
On
Monday, bonds of
what is now happening
repre¬ European-occupied countries es¬
sents the market's time-honored tablished new highs on the move.
function of 'selling on the good Domestic
commoditymarkets
hews—this time being a presump¬ have reacted sharply.
These are
tion of the good news which is
among the best evidences of how

Evans has been associated with R.
Crummer

Neacy

out.

Co.

Trust

Monday

Quinc.ey &
Co., was with

1-2033

all

Ctfs.

Mtge.

Members New York Security Dealers Assn.

39

that to be a nearby accom¬ duce or eliminate debit balances,
plishment, constitutes an impor-i i.e., to lighten accounts, not jet¬
tant step toward the liquidation of tison them.

E.

In

Co.

L. J. GOLDWATER & COL

concerning
would 5 take
ad¬
morning. vantage of this rally to liquidate
elimination of Italy, assum¬ excessive trading lines and to re¬
news

C. F. Childs &

Bell

Already,
of these

wiped

been

Invited

> Complete Statistical Information

ing

P.

Charles

had

points

the July
Italy j 142-143.
We

broke

which
The

is a logical sequence

i This

the

of

partner

a

is

*

40 Wall

and

145.82 will prove or two, bringing a recovery of ap¬
the high for some time to proximately one-half of the loss

come,

". Neacy &
Co.
i In the past he

Vewburger, Loeb & Co.
Members

&

and

of William

14%

July 14 closing high in the

the firm name

r

Call

-'vv'VV.-\-£

.:

18

In

Title

&

Bank

trial average at

i con ducted
business under

Certificates

the July 14, 1943 high.;
at yesterday's close, 40%

Obviously,

broken. " It

thereto

prior

Mortgage Company

surveyed. Mr.
full remarks on the sub¬

for

ward

Neacy

.Hoffman'

New York Title

peace-

| "It is now clear that the pattern

partner;? in

■

a

of the market which had been up¬

.

formerly

.was
•>.> a

to

war

ject follow:

.

Lawyers Mortgage
Company Certificates
/

'

inquiries

Bond

a

time economy are

Depart-

ment.

a

Specialists

Lawyers

.

-

transition from

Govern ment

Department

Are

REAL ESTATE SECURITIES
•"

discussion of the current market situation pre¬
pared by Glenn G. Munn, economist of Paine, Webber, Jackson &
Curtis,, 25 Broad Street, New York City, members of the New York
Stock Exchange, the upward pattern of the market for the past 14 lh
months is now broken, a logical sequence of the news concerning
Italy.'' The future course of the war and the possible action of the
market
in
"discounting"
the^
' 1
—"—"r*1

Co., Inc., !63 WalTStreet, New York
City, :% in J'its
.United States

ments must be made in New York funds.

;According to

>

We

p..- Lawyers Mtge. Co. Ctfs.

Says Market Acting In Logical Sequence

'

in the rate of exchange, remittances for

and

Harrison 2075
Teletype CG 129

:

sociated with Harriman Ripley &

NOTE—On account of the fluctuations

subscriptions

Now Broken

Board of Trade Bldg.
r CHICAGO 4 V

WmJSeacyNcwWith
Harriman Ripley Go.

of

foreign

Broadway

DIgby .4-8640:,
Teletype NY 1-832, 834*

ruary 25, 1942, at the post office at New
York, N. Y„ under the Act of March
8, 1879. -v.,v\:v.- .'I.

Munn|Sees Upward Pattern Of Market

Security Dealers Ass'n

York

■u

second-class matter Feb¬

as

New

< NEW YORK 4 i

,

.Reentered

»

Glenn

STRAUSS BROS.
Members

firm

Berkeley-Carteret 5V2S, 1951
Harriman

Bldg. 6s, 1951

Frank C.Masierson & Co.
Members

New

York

Exchange

Curb

NEW YORK 5

64 WALL ST.

-Teletype NY 1-1140

-

HAnover 2-8470

request.

upon

(•

.v:"
■

:;vvv

National

—

Sold

Quoted

Members N. Y. Security Dedlerff-Ass'nTele. 1-1825

N. Y. 4




Company

:

LUCKHURST&CO!
60.Broad St.

Potter Co.
Ss Due 1951

t
Bought

Harris-Seybold-

"

-

Common & Preferred

^

Bank and Trust Company

National Radiator
Casket Co.

^ i S.":: -

*.

«

y.s

.i

v

•<

Analysis
(*• "

C. E.

upon
1

-

request. ;
'

' VT»•'"

-V

-

:;

Established 19H

v.

-

.

York 6, N. Y.1

.Telephone BOwling Green 9-3565
Teletype NY 1-1666

,

Common & Preferred

.■.W.I,.'.-

^

Bought—'Sold—Quoted

HoixRsseSTrssier

;

Unterberg&Co.

Broadway,: New

/'

^

■.Members'New York<Security Dealers Assn/*

61

■

-

Members New York Security Dealers Association -

•

<

■

■

74

Trinity Place, New York 6, N. Y.
telephone:
Teletype:
BOwling Green 9-7400.

NY 1-375

1

CRAIGMYLE, PINNEY & CO.
Members

New

York

Stock

Exchange

ONE WALL' STREET, NEW

Telephone

WHitehall

YORK 5

4-5290

<";7.\;v'-"7
404

Thursday, July 29, 1943

OKLA CITY ADA ATOKA RY

TROSTER, CURRIE & SUMMERS;
Members New
74

York

1st

1 OKLA CITY SHAWNEE INT.
1st

ALLEN

To Yield

DUMONT

B.

Mtg. Fixed & Inc.

Cleveland

•

Detroit

•

Pittsburgh

-

for

- (

Members of

St. Louis

&

'

co

CALLYNahdCOMEANY
•

CHICAGO

monthly average of $39,047 for the five months

is

money

—how

For

fixed

are

a

few of the complicated

timely

sues,

the

A

six

months

period

$125,273
126,452

126,051
.102,802

'

i
i

May

mailed free on request.

139,670

T

Total

29,465

Account

for

the

6 -Month

'

'•

*

-<■

1942 and

of the

t h

|

the

•Fu|l Year 1942

o

;

cal
t

o

f. CLEVELAND,

Ohio—Robbins,
Union Commerce

has

been

associated

with

bins, Gunn & Co. for
in charge of trading. ~

some

Rob-

time

more
a

dered

H.

Counselor

bassy

Freeman
of

the

at

London, to return
Washington to serve as Chief
the

European

Division

State Department.
was

of

to
of
the

named to succeed

ton, newly-appointed Minister to
Canada.

The post vacated by Mr.
Matthews in London will be filled

by

Howard

Chief

of

Bucknell,

Assistant

the Division of Current

Wallace P. Cohoe

serve

Chair¬

as

Society's Council dur¬

administration

of

Mr.

Merele

Smith,
Missouri, has

of Kansas
joined the

Offer top

situations.
details.

has

lations
well

and

known

advertising.
He is
as
a
marketing con¬

The announcement

is made by Morton
utive

Bodfish,

Box

M28, Com¬

mercial & Financial

Gisholt Co.

«

attractive
a

Machine

situation,

:

-

■

extends

&

Co.,

170

Co.

offers

York

Co.

New

Copies of this inter¬
may

tained upon request from
&

an

according to

Broadway,

esting memorandum

City.

::

,58,000
181,218'

"75,198

CO.

1st

7*

from

of

and July

1st.

'7

;

7*"7

•

J

No..

Gs,

.

'

-

7

J

7

*

BUCKLEY BROTHERS

c ;

Members New York Stock
of

1931

i

1529

Year

.

y

1940

"

.•

6

•

I94i.y

-

.

4"H

g ,^\

1942 .-:

•*

1943

7

•

OCAA

-

-

"'

.'

3

%
'6

;•

J

-

6

W

1

Walnut St.,

'.ZL Bell

{
Phila.

;

None"; i

•

■

RIT

>.

Texas

be ob¬

bonds

in

future

Sees Market

at Atoka

otherylarge

years

by

operating in and out "of Okla¬
homa
City.
Including trackage
rights, yard tracks and sidings the

andr-U'i£>

furnishes

25

SMfir; ★11111

and

planes

on

Midwest

local

Italy.
war

the line about ten miles

cost

of

000,000. 7

these
at

two

about

this,

a

new

•

resi¬

dential

section, known as Midwest
City has been in construction
adjacent to the Air Depot, and

when
sand

pleted

Herzog tion.
The

last reported, over a thou¬
houses
were
either
com¬
or

in
•.

course

of

' *

"

y i

Floor,

Teletype

Securities
V -V".'

r:r-

Porter Bldg.
P.

D.

90

'

->

PORTLAND; OREGON

1 V

ST. LOUIS

is

for

now

of the

The

the

past

broken,
news

futtire

14%

logical
concerning
a

course

of

the

and the possible action of the
in
"discounting"
the

"

v5r/x

transition from a war to a peace¬
time economy are surveyed. Cop¬
ies of this

interesting release may
upon request .i from
Paine, Webber, Jackson & Curtis.
be

Petrolite Looks Good

8O9 OLTVE ST.
--

Bell

System

Teletype—SL 80

obtained

j:-"

SAINT LOUIS

pro¬

$60,-

>.7?7v7';..;.\ ,;.v-.7,:!

In addition to

-

w-

market

pot occupies about 2,400 acres of
land, and the Douglas Aircraft
plant - occupies about 480 acres.
estimated

Investment

Tenth

Street, New York City,

market

sequence

Douglas Aircraft
manufacturing cargo

of Oklahoma City has
changed the whole outlook for the

is

Broad

months

Air

southeast

total

Camp & Co., Inc.
-WW-

Exchange, the upward pattern of

the

for

Acting In

members of the New York Stock

steam

no

SECURITIES

by Glenn G. Munn, economist of
Paine, Webber, Jackson & Curtis,

the

passenger service.
The
location of

Depot
plant,

a

NORTHWEST

According to a discussion of the
current market situation
prepared

mileage operated is $146.33.
Although the Shawnee issue still

'

PORTLAND

'

total

St., «Los Angeles 14

a

Logical Sequence 777

systems

PH 265- v1

N. Y. DI 4-1527

PORTLAND. ORE.

115.87

Kansas, Okla¬
Tupelo, the Mis¬

—-

i

made with the

and

4488-7

'-,..-.6.. t

•

'.v

its

railroad

Teletype

W. 6th

530

-

Exchange

Philadelphia 2, Pa.

3%

comfortable margin.

with;

'

;

Income

OCSI

'

:

;

-

Missouri, Kan¬
Texas Railroad. Connections

&

V-1"-'"'

•-

r

f,

;

.

;

Plan

is leased from the

Kansas

^

Bought—Sold——Quoted

Oklahoma

which

& Gulf at

:V

"\r

•I

7-7-: 7

'

The' rate • is '2%" fixed

sas,
are

>i': 7

1st Mortgage

Mortgage

6

•5%

•

*7 ■*.*'

'

•

,/•'

V\'77.7y-'7-V.

A;* ■ •bsK.\\ :

I^f V'i'-

City to nent benefit from this develop¬
miles; ment and by all reasonable cal¬
(Okla. City to Colgate) is owned;! culations should be able to
earn!
the balance (Coalgate to Atoka); the full interest
^equirement oil

jects

memorandum prepared by Her-

zog

Chronicle, 25 Spruce St.,




'6". ~

.

Atoka,

The

Interesting

New

York, N. Y.

I

future of this system. The Air De¬

exec¬

vice-president.

Gisholt

'

RY.

None

retains the word Interurban in its

special

Apply listing

:

title, the road is entirely

Savings
League in Chicago, as
in charge of public re¬

commissions to

who

r

and

tary of the Missouri Savings and

trader

No

staff of the United States

Loan League.

TRADER WANTED

'-'i

and

U.S. Savs.-Loan League

executive

503,559

29,000

eaitned on OCAA.

A-i 6
'

homa

Loan

LIGHTING CO.
A*

City-Ada-Atoka Ry.^
is a part of the
Muskoge.e group ' MidwestI5epbt\are- intended!
which includes
Kansasj Oklahoma for permanent ;use.
The Okla¬
& Gulf, Osage Railway and Mid-: homa
City-Ada-Atoka
Railway
land Valley Railroad. - * The line therefore
should derive perma-i

Smith Joins Staff Of
H.

"

Oklahoma

sultant in the Midwest and South¬
west and has for the past several
years served as executive secre¬

Information.

—

i* :"v1

Cullen will

Ray Ather- City,

775
301 -VVV
4,000
8,000

217,810

.'OCAA

-2-

souri,

Mr. Matthews

if

.

1939

or¬

Em¬

r* %

'

-

1938

Matthews

American

'

-

1937

Cohoe.

Secretary of State Hull has

issiies )-• January

OCSI and 67o

«

than

the

if earned on

7

1935

century

ing

HEATING AND

$512,334

:Vv.-7.1

..1954.

1936 *

of

of the

1954;.'.".

CITY-ADA-ATOKA

OCSI

associated with the Nobel Ex¬

was

W'

INTERURBAN. RY.t.CO;
WV V

Record'6L Payments Since Readjustment

con-

man

Dept. European Division

Fixed and Income 6s,

INTEREST-r-Payable' (both1

plosives Company, Ltd., of Glas¬
gow and South Africa.
Dr.

Matthews To Head State

$400,*000; OKLAHOMaJ' CiTY-skAWNEE'

plus 4%

.London, "who
for

half

SAFETY CAR

;.;7,ii3

.

$226,111

-

reserve

-

William

sultant

!

interest

-

Cullen, LL.D.,

Building, members of the Clever
land Stock Exchange .have
ad¬
mitted Walter J. Carey to
party
nership in their firm. Mr. Carey

.66,162
142,874

$223,472 V $505,221

.

264,404
29,000
108,584

$700,000 OKLAHOMA

tex¬

chemical

616,502
'

77,5,433. | ,'•7,2,639;

••'v.-.."

princi¬
in
the

ceeds

$1,330,759

23,012
54,636

7 $269,013 j
:
609 t

tax

;;

Year

Carey

Year '42

$554,729
254,609

OKLAHOMA 4CITY-ADA-ATGkA RY4. l)as' two First;
Mortgage obligations—;

.

tiles, synthet¬
ics, paper, and
cellulose, suc¬

j(Speclal to The Financial Chronicle)

-

6 Mos. '42

'

corpora¬

of

and

•7.

Federal

Mr.

fields

30.-1943

L;

income: - ->2;

•

Contingent

f

pally

Bobbins, Gunn & Go.

Thone—REctor 3-4283

$108,584

v'

' '•:

,

Mos- '43

$714,816
-328,909
V >43,913

interest

adviser

tions,

;

June

78,464

.

Teletype NY 1-897

Co.,

••'>•

Fixed

Society, in

London.

York

'

Total

'

:

Cohoe, techni¬

v.Incorporated
63 Wall Street
New York 5, N. Y.
..

&

New

28,954

*9.1

received

head¬

tional

Frederic H. Hatch & Co.

Gunn

(;

"

MArket -3-3430

11,083
v<-

14.3

Periods Ended

(net)-

Operating

interna¬

e '

the

word
>♦"

to

from

quarters

f

!

'$263,530

Society of Chemical Indus¬

according

try,

here

Admit Walter

Rents

Wallace P. Cohoe of New York

Holding Corp.

Bell

18 Clinton St., Newark 2, N. J.

6.0

■

$264,'404

Operating revenue Operating expenses *
U.
Railway operating taxes.
)

City has been elected President

c

13,134

PHILADELPHIA
'

Chemical Ind. Society

Amerex

Sold

Established 1891

24,589

7.0

;

"Average.
Comparative Income

New York, N. Y.

;

Rippel & Co.

18,551

Securities

Cohoe Elected Head Of

—

J. S.

Taxes

$12,273

9.3

-

769,175
-

of N. Y.

10.5

34,021

$714,816

Jersey Insurance Co.

'

Federal

1

<,

(Newark)

7.3

:

45,018

94,568 i

June

Conting. Int.

IV' Covered

51,208

XNJV6

Bought

American Insurance Co.

'

vTimes

-Charges
$35,517

„

April

R. V. KLEIN COMPANY

■>

-''

& Fixed

Revenue

Money Of The World"

170 Broadway

of Newark

30th, 1943, earnings after

Deprec.

Operating

January
February

Investment

June

interest

March

copy will be

to

Milwaukee

Firemen's Insurance Co.

in¬

Net After

beautiful 54 page booklet;

"The Future

preceding—an

-1

and yet vital is¬
discussed in our

comprehensively

and

the

Boston

NEWARK

totaled

Morgenthau-Keynes plan affect us, and how will we
ever pay a probable 350 billion dollar debt?
These

New York

charges and depreciation, but before Federal taxes,
$264,404, as compared with $217,810 in the six months, ended
June 30th, 1942—an increase of
21%.
Comparative figures follow: -(cents omitted)

period.

it work —how will

does

of 77%.

crease

is the most vital problem which will face every owner
of stocks, bonds, savings accounts, life insurance poli¬

What

Phila., Pa.

June earnings after depreciation and
fixed interest charges, but
before Federal Taxes, amounted to
$69,175, as compared with a

"The Future Money of the World"

estate during the post-war

INCORPORATED

Philadelphia Stock Exchange

Oklahoma City-Ada-Ateka Ry.

NEXT TO VICTORY ITSELF!

and real

MUNICIPAL

BONDS

Packard Bldg.

cies

RAILROAD

Analysis

L 11 a li

77
Wires to Buffalo

RY

1954

Current Return of Over
11%

a

Write

Private

6s

:77l

LABORATORIES "A"

UTILITY

INDUSTRIAL

Trinity Place, N. Y. 6—HA-2-2400—Teletype NY 1-376-377

IJII

PUBLIC

Mtg. Inc. 6s 1954

Security Dealers Association

■

Petrolite

Corporation, Ltd., of¬
fers interesting
possibilities for
income, according to a memoran¬
dum issued by Hill, Thompson &
Co., Inc., 120 Broadway, New
York City.
Copies of this memo¬
randum discussing the situation

construc¬
' i.. : may

Douglas Aircraft plant and

I

'

be

had

upon

request

Hill, Thompson & Co.

from

Members St. Louis Stock Exchange

B. Shankman In

Army

v

Benjamin Shankman, of Carl
Marks
&
Co., Inc., New York
City, is now in the U. S. Army,
stationed at Camp Swift, Texas. <

Volume

Number 4198

158

405

Defaulted Railroad Bonds

;

-

REORGANIZATION

-JU-

/-v

V.

;

'•*.

p.-.

and

RAILS

Railroad

r

.■■■'

•

;

' ■"

-.'

v

'

Reorganization Securities

Aldred Investment Trust

4y2s, 1967

Inquiries Invited

British Columbia

pflugfelder, bampton & rust

NEWBORG <5- CO.

Members

New

York

MEMBERS
New York

Stock
Curb

Baltimore

Stock

Stock

Boston

Salt

:

Exchange

Canadian Internal

New York 6

*

'

Telephone—DIgby 4-4933

Bdl

...

Teletype—NY

Montreal Lt., Ht. & Power

Exchange

Produce Exchange
Board of Traded
f Chicago Mercantile Exchange
York

3y2s, 1956/63/73

Railroad Securities

) Commodity Exchange, Inc.
Winnipeg Grain Exchange

30 BROAD ST., NEW YORK 4

Tele. NY 1-2972

Steep Rock Iron Mines Ltd.

,

5y2s, 1957

The Interstate " Commerce Commission has recently issued its

3.;

third supplemental report in the New Haven
fied plan makes some- adjustments

proceedings. The modi¬
and, while all parties are not
apt to be satisfied with their allocations, it is the general feeling that
this most recent proposal will be the final plan.
This presumption
would, • of course, be nullified by passage of the recently proposed
Hobbs Amendment to, Section 77, <♦>or- Similar
^-legislation', 1 but in- '
formed
railroad
opinion
leans
Harold B, Smith, Collin, Norton & Co., New York City, Chair¬
strongly to the belief that no such
WE ARE INTERESTED
man of the Advertising Committee of the National Security Traders
legislative hamstringing of the
Association announces the appointment of special advertising com-,
IN
OFFERINGS OF
Commission is likely."
mittees in the various affiliated traders associations to solicit adver¬
SIZEABLE BLOCKS
; - The chance for success of the
tising for the annual NSTA meeting issue of the "Financial Chronicle."
plan is improved by the provision
The "Chronicle" will again carry, as it has for the conventions

HART SMITH & CO.
52

Advertising ComniiHee

Chairman Of NSTA

Paper

6s, 1949

1-310

)Chicago

City Stock Exchange

HAnover 2-6540

York Mercantile

New

Stock

' 1

Broadway

Exchange

York

New

Exchange

Exchange

Stock

Lake

Cotton

New

Exchange
Philadelphia Stock Exchange
Pittsburgh Stock Exchange
St. Louis Stock Exch. (Assoc.)
Chicago

61

Cocoa

Exchange
New York Coffee & Sugar Exch.

Exchange

York

New

New York

Exohang-e

Telephone

4y2s, 1961

WILLIAM

St., N. Y. 5

Bell

HAnover

Teletype NY

New Yori

2-0980 *

1-395

Montreal

Toronto

Reports Appointment Of Committees By Affiliates

SEABOARD AIR LINE
RAILWAY COMPANY

-

act

as

official

<

and

the

also
of

the

the
a

d

-

from

profits

t i

sold

for

•

63

Resident. man¬

Street.

Wall

of the new branch will be

Tracy. R-3 Engle,
Abbot & Co., Inc.

head of Engle,
.

;

/;

ap¬

tising

com

mittees
V

^ Mexican

aver-

are:;

,

;

limith

Harold B.

lion:

Dayton

Haigney

Stock

C.

J.

Phillip J.

Brockhaus

&

Co.

3

stated:

the

after

re¬

they also will provide resources
to acquire from the Bank of Mex¬

and the stock, as well as other re¬
organization stocks, still reflect
the hopes of some material sal¬

ico part of the accumulated cash
and make it available for retire¬

gard

of

ment

has

We

^

-

3

been

plan but there
subsequent recovery
new

a

Practically all rail men re¬
this as dangerous and un¬
warranted
speculation,
which
vage.

private and public obli-

offer, subject

of

more

psychologically weakens the en¬
tire reorganization railroad price
structure.
' ■ ' ■
'
:
is

There

other

one

important

.

conclusion

general

be

to

drawn

from the recent New Haven

Hollidaysburg, Bedford & Cumberland Railroad
1st

4s, July 1951 @ 104%

satisfied

with the

That

modifications.
Commission

is

capitalizations it has

•

.

is

plan
that the

does

not

to

intend

set up and

reduce

them

further when the accumulation of
cash from

STROUD & CO.
1 >.j ,*:>•,

INCORPORATED

,

'

the

,

123 South Broad Street

Teletype.

WM

'''

trust

Haven

against
In earlier New

estate.

proceedings,

when

there

|

120 Broadway

.

297

business allows in¬

had been a moderate reduction in

P HI LA DELPH1A

PH 296 and

war

terim reductions in claims

NEW .YORK

- '

claims as a result of interest payI ments, the new securities released
thereby were not reallocated. The

request

on

148 State St., Boston, Mass.
Tel.

There

the

were

surplus spending money and that

Hun¬

Special letter

accord.

Quotations

than halved immediately

& Co., El- gations in foreign countries.

J. O'Kane

This

principle will presumably be car¬
over-into other reorganiza¬

feature

Bond

;

Reorganization Bonds

alloca¬

bond

ried

a

Edward

ter & Co., assisted by Harry Cas-

John

improve

old secured bonds.

tion

change of heart to push
preferred up to $6.00 a

a

"It was'

Security Traders Association of

per,

pro¬

lease

New York: "Duke" Hunter,

to

tions to

5

Railroad

shall be taken of the reduction in
claims

STREET

YORK

advantage

there had been enough speculative

to

Mexican

of

explained officially that
the bonds are expected to absorb

and

Siegman,

that

decided

has

sion

will bear 6%"interest.:

and

move

retirement

for

further

Clark, Amos C. Sudler & Co.
Cincinnati

nothing in the past record of the
Commission, or in the long record
of court proceedings in this and

special dispatch from Mex¬ hope in
ico City to the New York "Her¬ the old
ald Tribune" of July 22, it was share.

A. King, Maynard Murch & Co.

Club:

pur¬
been

WALL

NEW

outstanding in the United
The bonds, due in ten

In

Turben & Co., assisted by Edward

Van Tuyl & Abbe

part of the record in the

a

years,

Dayton

Cleveland Security Traders As¬
sociation: Harry Gawne, Merrill,

Bond Club of Denver:

1-2060

States.

vide
bonds

Haigney,

Teletype: NY

it,,

,

of

-

Co.

&

STREET, NEW YORK 5

3-3460

proceedings where the ac¬
cumulation of huge cash balances
other reorganizations, which could
is one of the most vexing prob¬
have > supported 3.'hopes
of
any
lems facing those working towards
other
conclusion. Nevertheless

anti-inflation

Trad¬

Associa-

ers

on

as

before

pany; i even
through stock
chase warrants.
There had

Mexico au¬
July 21a 200,000,000issue designed as an

bond

peso

WALL

1

Willie nail

right of holders of the old equities
to, participate in the. new com¬

Bond Issue; ^

Republic

thorized

>

Se¬

Boston

curities

The

LEROY A. STRASBURGER & GO,

proposed new capitalization was
proceedings, the history of war- merely reduced by a correspond¬
swollen earnings.
It considered ing amount.
these earnings in arriving at its
In the new plan, with interest
final decision.
On this record it
payments having reached more
still found the old stocks to be
sizable proportions, the Commis¬
without
value
and
denied
the

Chairman of

newl

and

Leased Line Issues V

72

and

Exchanges, have opened a
"office in New York City at

ager

issue
will go to the
NSTA, ' \v\
meeting

pointed

Underlying Mortgages

the security holders

on

Commission had

The

Stock

s-

election

the

Specializing in
RANGE

PRICE

40-70

of

expression of general
I.C.C. reorganization philosophy.

members of
and Philadelphia

York

New

new

ing

effect

most recent

Buckley Brothers,

the

special

v e r

the

itself, it is of import¬
ance in evaluating, the whole re¬
organization picture> as it is the

Buckley Bros, Opens
New York City Office

the

bulk

plan

from

of the road

This

year

Aside

THE

IN

BONDS

,

Associa¬
tion.

terms.

Purcell & Co.

the

of

organ

Stryker & Brown,
Ralph T, Dimpel, Edward A.
Smith,

bridge

proceedings of the election
meeting of the NSTA to be held
in Chicago August 20-21, and will
the

RAIL

Colony and Boston & Providence
if; those security holders reject the

GRADE

MEDIUM

OF

for consummation without the Old

in the past, news of ♦>—-

and meetings

was

disappointing

one

of the

CAP.

0425

;

:

>

Teletype BS 250

N. Y. Telephone HAnover 2-7914

k

plan and that was

establishment

of

definite

a

effective

date, July 1, 1943, rather
than allowing some discretionary

Incomes and 29.02%

new

preferred

in

new

stock.

further modification

Previously the
20%, 40% and
40%, respectively. As of July 1,

approved capital structure
and the allocation of reorganiza¬
tion securities.
."
Apparently
this will mean that once the plan

Refunding 4J/2S for principal and
interest aggregated $1,116.30.
If
there >1 is
no
further
reduction

This feature is designed

margin.

to "avoid any

of the

.

.

no

further
of

count

done

been

to

be

and St. Paul cases, on

be

to

There

received
is

on

based,

the North

in

has

as

bonds

in

reorganization.

in

some

quarters
that an additional payment of in¬
terest on the old bonds may be
made
the

hope

before

plan.

Due to

securities

„•

the

receives

court

•

released

are

Mortgage

1st

&

in

new

1st 4s, $529.80 in new In¬

41/2S,

come

ferred

and

stock.

$323.95

With

in

such

pre¬

treat¬

these

ment

bonds, and others se¬
by the same mortgage, still

cured

have

a

considerable

price appeal

measure

of

.

new

interest

by

to

now

bonds,

Beech Creek

receive

23.52% of their total claim in

3st

old

-

,

the reallocation of

payments, the bonds secured un¬
der
the
eld
1st
&
Refunding

Mortgage

the

court, this will work out to $262.55

Western

new

of

through payment of interest be¬
fore the record is certified to the

Any future payments

have

claim

the

on

accruals

interest

old bonds.

would

payments

the

1943

been

ac¬

is certified to the court there can
be

had

ratios

new

47.46%

R. R.

in

4% Stock ($50 par)
Now that the Final Report

submitted to the Court in

Members New York Stock Exchange

a

form practically identical to his

draft

Mclaughlin, baird & reuss

of the Special Master has been

our

report,

we

feel that

(Lessee New York Central R.R.)

study of the
Circular

SEABOARD AIR LINE
BOND

BROKERAGE

SERVICE

Specializing in Railroad Securities

is

<

more

timely

request.

-/■
.

-

than

TEL.

3:

-/■;

HANOVER

i

;■

<

j




YORK

1. h. rothchild &

I
•

5
-3.

TELETYPE

2-1355

f

NEW

NY

1-1310

gladly furnished

upon

■

specialists in rail*
120broadway
COrtlandt 7-0136

co.

n. y.

Adams & Peck
63

,

c.5

Tele. NY 1-1293

Wall Street, New York 5

BOwling Green 9-8120
Boston

•;

.

'

request

3

«•-

WALL STREET

ONE

Copies

ever.

on

Philadelphia

Tele. NY 1-724
Hartford

406

THE COMMERCIAL & FINANCIAL CHRONICLE

We maintain active

Thursday, July 29, 1943
ruinous terms?

trading markets in

lected
meet

Associated Gas • & Electric

General Gas & Electric $5 Prior Preferred

Corp.

in

amounts

to

obligations?

Under

t?.

viduals

Massachusetts Utilities Associates 5% Preferred

Can taxes be col¬

sufficient

the

stress of war, indi¬
industry must toler¬

and

ate
high taxes.
In peacetime,
high taxes discourage business,
resulting in unemployment and

All Issues

Peoples Light & Power $3 Preferred

stagnation, when a high tax rate
brings in less revenue than a

Laurence M. Marks

Co.

&

lower

Trading Department

Members New York Stock Exchange

Wall

Street, New York 5, New York

Telephone

REctor 2-2300

Teletype N.Y. 1-344

Telephone HAnover 2-9500

Members New

York

Stock

who must convert their War Sav¬

ings

money

120 Broadway, New York 5

NY

1-1693

into cash,
get the
with which to pay the in¬

terest

T eletype

Exchange

Bonds
on

and

State

Public Utility

Commission

Securities

to smooth

Utility financing has consistently declined in volume since the

pany and commission.
number of issues are

both

com- v-

However,
now

a

incu¬

bating and a period of brisk ac¬
tivity is anticipated around midAugust

after Labor Day. Fol¬
are
some
of the issues

or

lowing
which

—

Community Power & Light

cently

re¬

registered $6,850,000
1st
1973 with Central Re¬

3%s due

public Co. of Chicago as the prin¬
cipal underwriter. However, the
issue

was

being lined

up:

explanation.

t

are

subsidiaries of General Gas &

Electric,

Southern
sub-holding
company in the Associated Gas &
Electric system. General Gas had
hoped to sell them to the South

Public

(Middle

Service

West

of

Oklahoma

System)

plans

to

issue

$6,600,000 additional 3V4s,
1971, the proceeds to be used to

redeem

over

this

difficulty. Be¬

of the number

cause

sions

and

of

courts

of

stock

common

,

financing

for

some

time but

pears

in the offing—sale of Elec¬

tric

Power

&

one

off.

issue

now

ap¬

Light's holdings of

Idaho Power Company. The

com¬

a

ordered

Seyeral houses have been

Pennsylvania Electric Company
(Associated Gas & Electric Sys¬
plans to sell $4,000,000 1st
mortgage bonds due 1973 and 35,000 shares of preferred stock at
competitive bidding. The SEC has

fixed the

hearing date for Aug. 5.
The purpose of the
financing is to
take over Keystone Public Service
and

Bradford

Electric, refunding

the former's bond issue.

bonds

of

Would Solve National Debt By Issuing
legal
Tender' Bonds Yielding $ I a Yr. per $ 1000 Bond

M. M. Mattison, 50 Broadway, this
City sends us the letter be¬
low, in which he advocates the issuance of "National Security Legal

Tender Bonds" bearing interest at the rate of one tenth of one
per¬
cent. A copy of this letter was sent by Mr. Mattison to each member
of Congress.
The letter follows:
The subject matter of this letter^
will

play

in

important

an

the future of

in

part

Government and

our

the

happiness of the present
generations.
I
re¬
spectfully ask that you give it

and

future

careful

Northwestern

unbiased

and

considera¬

must

borrow, why not do

so

as

economically as possible and ap¬
ply the savings to reduction of

Where

Social

will

A group will appear

debt

repudiation
and

masses

Se¬

advocating

to

the

save

future

generations
The
that
that group will

from poverty and suffering.
masses
will
probably put

party in power, or
suggest
printing
press
money.
Democracy, to put it mildly, will
be menaced.
THIS

NOT

DARK

PICTURE

NEED

APPEAR.

>

To

summarize, the bonds sug¬
gested above will require no mar¬
keting, no stabilization, will not
fluctuate, will permit low peace¬
time taxes, result in enormous
yearly savings, help preserve our
national honor and credit, relieve
the present and future generations
of misery and despair, and
pos^

the

sess

safeguards

bonds.

One
is

of

desirable:

constitutional

a

ordinary

--

step is

more

it

amendment

prohibiting the issuance - of
type of bonds for any other

this
pur¬

pose than National Security. This
amendment, in the present emer¬
gency, will probably be adopted
promptly.

With your

Security Legal Ten¬
der. Bonds" can be used by the

debt

they

as

curity, Old Age Pensions and Re¬

debt?
"National

bonds

our

lief money come from?

re¬

tem)

burdensome

our

redeem

mature?

by the

substantial write¬

ported anxious to handle the deal,
but the SEC may order
competi¬
tive bidding. A
hearing was held
July 21.

commis¬

There has been little in the way

been

FPC to make

involved

proceedings may run well into
1944, and the bond offering does
not appear to be imminent.

has

pany

later withdrawn without

It is reported that
some question arose as to whether
South Carolina Electric & Gas,
which is being merged with Lex¬ the company is interstate or intra¬
state.
ington Water Power, will issue
California
Electric Power has
$20,000,000 1st Mortgage 30-year
refunding bonds. The bonds were filed $16,000,000 25-year 3%s, and
registered June 28 and the merger $4,000,000 convertible preferred.
became
effective
July
26,
on The offering is not expected im¬
which date competitive bids for mediately.
Dillon, Read is hand¬
the bonds were submitted. Public ling the bond issue and Stone &
offering of the bonds should fol¬ Webster and Blodget the pre¬
low shortly.
The two companies ferred stock.
are

mon-

giving free play for investi¬
gation of the accounts, and the
application is now being amended

peak year 1927, and 1943 is making a new low record. With highgrade corporate bonds selling close to all-time peak levels, it is
surprising that more refunding has not been accomplished recently.
One reason appears to be that any financing proposed these days
usually raises questions regarding property write-offs, which require
careful consideration by

a

not

Wave Of Utility Refunding Issues
?

threw

keywrench into the proceedings,
claiming that the company was

;

•

then, will we get the
with which to pay those

money

Wertheim & Co.
49

one.

Where,

cooperation, this plan

will save your country,
annually ^
six thousand million
dollars, equal

tion.
Government for the direct pay¬ to $222 per family of five, or $44
Light, which is to be merged. The
The annual interest charge on ment
for
materials, equipment for every man, woman and child
refunding is tied in with a Middle the money our Government must and expenses.
in the country.
politics and failed.
West program involving several
borrow, m&y become very bur¬ ,vin practice the typical pro¬
Under this plan, if these sav¬
Northern Indiana Public Service subsidiaries, being a step in the densome.
It mded not.
cedure may be as follows:
ings are applied to the reduction
Vf*'"
filed $45,000,000 Refunding Bonds system's general plans to gear it¬
For
example:
If we borrow
The Government may contract of our indebtedness, we will be
(3y4s or less) due 1973, on June self with Section 11.
two hundred and fifty billion dol¬
with General Motors Corporation free of debt in 42 years.
Under
28.
The present 3%s, which are
Laclede Gas has been working lars (250,000,000,000) for Nation¬ for
fifty million dollars worth of our present method it will require
to be refunded,
al Security, an interest rate of at
are
rated Baa. for the past year or so on re¬
250 years and two hundred and
army trucks or tanks, and pay for
Two groups are expected to bid
capitalization plans, some steps least 2i/2% will be required for them directly with bonds.
Gen¬ fifty billion additional dollars, if
for the bonds, headed respectively
having been completed.- The bond long term present type of bonds; eral i Motors may deposit said we retire one billion dollars of
by Halsey, Stuart and Harriman refunding
program was revamped costing six billion two hundred bonds in the Chase National Bank debt per year.
Ripley.
and fifty million dollars (6,250,June 15, the latest proposal being
and receive credit for the amount
Should our indebtedness become
-Delaware
Power
to
issue $19,000,000
&
If instead we deposited. The Chase Bank may
Light
1st 20-year 000,000), yearly.
greater than the amount above
issue the same amount in "legal
•(United Gas Improvement Sys¬ 3%s
and
$3,000,000
debenture
keep said bonds and receive in¬ mentioned, this plan will still can¬
tem)
plans to acquire Eastern 3V2S. The date of the financing tender" bonds, an interest rate of terest thereon while they hold cel it in
42 years, whereas our
1/10 of 1% will be ample, costing
Shore Public Service from Gen¬ remains indefinite.
them; and when the Bank needs present method will require a
eral Gas & Electric (Associated
only two hundred and fifty mil¬ currency, particularly small cur¬
Utah Power & Light on July 1
proportionate additional amount
lion dollars (250,000,000), thereby
Gas System) and do a general re¬
rency,
send bonds to a Federal of dollars and
registered $37,000,000 lpt mort¬
years, to free us
saving six billion dollars (6,000,- Reserve Bank and receive the defunding. The company hopes to gage bonds due
from debt.
1973, the interest
000,000) yearly.
register $15,000,000 30-year 1st & rate to be supplied
fired currency*; or if preferred,
by amend¬
Should we be compelled to pay
An interest rate of 1/10 of 1%
collateral 3sr together with $4,- ment.
credit. The Federal Reserve Bank
The
company
has been
a higher rate of
is
interest, which is
suggested because that rate may use them as they would or¬
000,000 Preferred stock, by July 31 having difficulty with its
prop¬
likely as our debt becomes great¬
fafterf which the contract with erty account, since the Federal will more than compensate for the dinary bonds; but whoever holds
er,
this plan will cancel in a
Associated Gas expires). Negotia¬ Power Commission
deposit insurance charge of 1/12 them on interest dates will be en¬
wants to make
shorter time than 42 years, where¬
of 1% which the banks have to
tions with the SEG were, slowed a
titled to interest as in case of ex¬
deep cut, reducing the amount
as
our
present method will be¬
pay on deposits.
by a proposal made by the newly to so-called
istent Government bonds.
"aboriginal cost." It
come
more
expensive and take
formed
Delmarva
Electric
Co¬ seems probable that the SEC will
Bonds of this type will be pre¬
If bonds .are not in registered longer than it otherwise
would.
operative, which offered to make not insist on complete readjust¬ ferable to cash where unemployed
form, the backs of same may have
[Editor's Note—Mr. Mattison's
a slightly
higher bid for the East¬ ment of plant account at this funds in quantity are held. They
spaces for endorsement of inter¬
proposal would mean an invest¬
ern Shore
property, but failed to time, since this would endanger will not, sell below par because est payments.
%
ment return of less than one cent
obtain SEC approval for the idea. the
If a holder wishes cash between
refunding and perhaps threat¬ they will always be exchangeable
a week to a holder of one of his
Delaware's
present
bonds
are
en
They will not interest dates, he may dispose of
bankruptcy for the company at par or better.
$500 "legal tender" bonds.
rated AA.
Mr.
Several groups have in
1944, when a large amount of require stabilization and a mar¬ bonds at par plus the interest ac¬
Carolina Power

-

Authority but the

deal became mixed up with local

been formed to bid for the issue.
Iowa Power & Light filed

$19,000,000 1st 3y4s due 1973 on May
13, but the deal is complicated and
has progressed slowly. The issue
may be ready for bidding around
mid-August.

bonds become

ket will not have to

due.

Niagara Hudson Power plans
a huge
refunding operation—prob¬
ably over $200,000,000 3s—in con¬
nection

with

tegration

its

merger

program

mitted to the SEC.

and

recently

in¬
sub¬

The New York

before
be

of

and

prepared

desired
interest rate, bear coupons or not,
be in registered form or not and
bear

maturity,

any

be callable.

„

,

r

At

be

maturity they may
funded by like bonds.
"National
der

Bonds"

mous

UTILITY PREFERREDS

be

issuing them.
They may
any desired denomination

with

Security

be

Ten¬

Legal

will

not

currency

re¬

synony¬

or

green¬

backs, for they will have a ma¬
turity date, be callable and have
an
interest/ penalty, which cur¬
rency and greenbacks have not.
It may be said that they will be

crued

thereon,

a

peace

Paine, Webber, Jackson & Curtis




ESTABLISHED 1879

at

least

cause

bonds bear

terest and
them

no

existing

are

a

a"

Be¬

low rate of in¬

legal tender, makes
inflationary than

more

Government

bonds,

which may be sold at will.

If

we

comes

Revenue from taxes
will decline precipitously.
Un¬
employment Insurance and Old
Age Pensions will be menaced.
We have sold billions of dollars
worth of War Savings Bonds, pay¬
able

practically on demand. Many
of those bonds will be un¬

owners

shelter.

for

done

huge debt.

must

bonds

now

difficult permd

but must have

issue

is

there will
during which
unemployment will be a serious
problem confronting us, at least
during readjustment. This period
may last long.
What then will
we
have to face?
Certainly a
When

be

inflationary.
All
Government
bonds are inflationary.
But we
part of the money necessary.

as

with Government bonds.

employed.

ment

of

They

are

patriotic,

food, clothing and

They will ask for pay¬
their bonds, and their

number may be

legion.

If the na¬

tional debt has reached a stagger¬

will the Government
be able to sell ordinary bonds in
such
an
emergency,
except on
ing figure,

Mattison

overlooks

portant fact, it

the

im¬

very

to

seems

that

us,

when the interest rate is virtually
nil there is no incentive for one
to retain

a

bond

Consequently

as an

his

investment;

"legal

pieces would find their
the Federal Reserve
our

currency

fect

just

fiat

too,

ings

from

would

being diluted in ef¬

effect

also
on

have

bank

investments

probably

force

if

case

printed.

were

would

adverse

into

System, with

would be the

money

plan,
an

as

tender"
way

His
such
earn¬

that
most

it

of

them to close their doors.]

Good Post-War

Prospects

Newburger, Loeb & Co., 40 Wal
Street, New York City, member
of the New York Stock

have prepared a list of
stocks

pects.
list

good post-war pros
Copies of this interesting

may

upon

Exchange
low-price*

with

be

request.

had

from

the

firn

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

To Substantias Increase Sn PosS-War Basiness

New York Title

REPORTER'S

Answers To Hugh Long Co. Questionnaire
Reveal Dealer Optimism.

He believes Germany will be defeated in 1944 and Japan in 1945.
Although he anticipates a high level of taxes, and that living costs
will continue to

rise, he believes conditions will be such as to en¬
investing.

to

answers

from^

are

Of these new accounts,

ulating,-

questionnaire sent by

a

investors outnumbered

Hugh W. Long & Co., Inc., 15 Ex¬
change Place, Jersey City, N. J.,

speculators

by 1% to 1.
Asked to name the three indus¬
tries with the best post-war out¬

Hugh W. Long & Co., Inc. is na¬

look, dealer vote was heavily for
Automobile, Chemical and Air¬
lines in that order.
Giving their

all

members

tional

of

distributor

the

York

New

of

Stocks,
Inc.,
Manhattan
Bond
Fund, Inc. and Fundamental In¬
vestors, Inc:
j | According
to
the
survey,
answers to which were supplied
by dealers in 35 states, shifts in
population due to war work have
helped rather than hurt' their
business.
The average sales or¬
ganization has lost 41% of its men
to war activities, but a large ma¬
jority of dealers believe that al¬
their

most

all

will

return

answered

the

that

securities

previously
who

HUGH

OF

RESULTS

W.

2.

shifts

Have

A

below

you

due

population

of post-war

gree

are

Japan?__

,1

is

issue in

No

33%

no

27%

the,

:

"

7.

Are

keeping

office open one or
for the convenience

your

evenings a week
prospects?—

more

of

such

Yes

No

,

-1.2%

98.8%

successfully used direct mail ad-

you

If so, what type

9.

Yes

effective?:

Inquiry-producing
(b) Inquiry-producing
(a)

A

.iv

Straight

(d) Letters

'7 41%-

10.

tion

111

price

Will

7-

remain?—
controls

to

only—

v

Yes

and corpora-

removed soon

•

•

No

627c

No

37%

Will living costs continue

Automo-

'.

■-

-

so,

.

•

.

*'.''

;

line.

12%

20%

■

v7.

■,

Air¬

road^
'■

10%:
craft

Rail¬

12.9%

Mfg.
10%

12.4%

•"'."'

Yes

expect a drastic postwar depression?
about (?) months after V-day?

Do you
If

•

Months

\

.No

.

.

able to prevent a dangerous
postwar unemployment?—

Will industry be
degree of

■'

*.■ '"

•

->

■

No!

Yes

'

72%.

Sound Pr. &Lt. Co.
Jecap Plan Interesting
f

Ira

tfew
^ew

Broadway,

Haupt & Co., Ill
York
York

City, members of the
Stock Exchange and

28%

Mid-Year Bank Figures

Study Now Available
Bissell

&

Meeds,

A

120

bers of the New York Stock'Ex¬

national exchanges,
change, have prepared an inter¬
lave
prepared an anlysis of the
■ecapitalization
plan of Puget esting; fanalysis of bank stocks

>f
ie

this

had

interesting
upon

Co.

Copies

circular

request

from

may

Ira

figures.
may

4.




include

Copies

the

of this

mid-year
analysis

be had from the firm upon

request.

Jaupt & Co.

to

408 rentable rooms.

contains

SECURITIES

The

SHASKAN & CO.
Members New York Stock Exchange
Members New York Curb Exchange

fixed interest rate of 3%, with

provision for

plus

earned,
in

terest

additional 2%, if
participating in¬
net earnings of

an
a

25%

IN

REAL ESTATE

$2,574,500 first mortgage fee bonds
outstanding are due in 1950, have

40 EXCHANGE PL., N .Y.
t

Bell

Dlgby 4-4950

Teletype NY 1-953

of

the

Owning Corporation.
July 1, 1940, at which
time interest became fixed at 3%,
Prior to

fixed interest
with

was

Active Markets

1 % per annum,

BK

provision for 2% addi¬
tional cumulative
interest for the
mortgage years ended June 30,
a

1938, 1939 and 1940.

Unpaid

$21.55 per $1,bond, which may be paid on,
before, maturity.

or

Income

ended June

for

the

Series

Prudence Collaterals
and

A-18

other

all

year

30, 1943, increased to

$91,700,

Fl

ac¬

total

cumulations
000

C2

N.Y.TitlesMtge.

.

TITLE CO. CERTIFICATES & MTGS.

SIEGEL

com¬

39

pared with Current Liabilities of

Bell

System

CO.

&

Broadway, N. Y. 6

Dlgby 4-2370

Teletype

1-1912

$76,000.

issues

Puget

over

sizeable

the offering prices.

Sound Power

&

4*4s, for example, marketed at
104*4, have been ruling around

dearth of

new

to bolster the
the municipal bond

have pushed their way back
approximately duplicate their
top prices for recent years. To put
it another, way, that in which the
trade views the picture, yields on

Cigar 3%s

likewise show

pre¬

miums currently.

now

returned to

levels

prevailing in the
Fall of 1941, a:few months before
took

into

us

the

J',
the

break

followed

Treasury was bent on
the tax freedom of such

issues, the yield basis

rose

some

60 percentage points. That ground
has since been fully recovered.

glance at the market shows

that most of the recent

porate
well

issues

since

market.

have

being

new

been

placed

In almost all

transfer taxes for transactions ef¬
on a registered Stock Ex¬
change of the State go into effect
on Aug. 2.

Under the

method of coL*

new

which

issues, Public Service of over-the-counter
New Hampshire 3%s'and Armour

does

cor¬

doing
on

cases

the
such

affect

not

transactions

in

listed

Delaware

7s, have been quoted
slightly under their issue, prices.

securities, the payment will
through the Exchanges
affiliated clearing corporations for
made

be

the account of the State Tax Com¬

Drafting Of Women

mission.

Seen By Mrs. Roosevelt

without

The

j

..

i

of

these

of

stamps

taxes
is in
accordance with the law adopted
payment
the

use

Registration of women and the by the New York State Legis¬
drafting of those of "certain ages" lature and approved by Governor
will inevitably result if recruit¬ Dewey at the last session.
Plans for the State change and
ing for women's units of the armed
also

reference

to

ber

with

Federal

tax

needed,

Franklin'

according

to

Mrs.

D.

Roosevelt,
whose
further remarks in Washington on
July 26 were indicated as follows

the

discussions

authorities

on

this question were
our

referred to in
issue of June 10, page 2170.

in the Associated Press:

She suggested that the fact that

WAVES

are

overseas

and the recent attacks

not

permitted to

serve
on

the social behavior of the
New Issues Doing Well

A

regulations regarding

forces falls very short of the num¬

which

the

ending

new

elimination

the

lection,

Two

to

Harbor

The

fected

sues

Pearl

NY Stock Transfer Tax

Pipe Line 2%s and Consolidated

<

low

Paying

Congress

of

of high-grade State
and city loans shows that such is¬

the

New Method For

Light

104%, against the issue price of
101%, while Panhandle Eastern

serving
in

commanding

are

premiums

.

survey

when

Broadway, New York City-, mem¬

revised

TRADING MARKETS

>

Ave.

Park

being an ideal
corner for this type of property.
Fifteen
stories
in height,
it is
erected on a plot 75x160 feet and

circumstances,

;/

the entry of the nation into hos¬
tilities and continued into 1942

>ther leading

Sound Power & Light

is

war.

Laird,

of

Street

of stamps in the
payment of New York State stock

;

recess

veritable

the

In

*11 get

corner

65th

and

106% bid and 106% asked. Penn¬
sylvania, Ohio & Detroit 8%s
having been moving at 104%-

Full Recovery

such bonds have,

68%

25

32%

V
7.

It

100J4 instead of

market.

Air-

'7

the

situation

,25%

—
'V* :

Chemical

mobile

three industries have the best postoutjooks?
*

what three will be least favorably situated?.

5.

No

:■

Tool-

i

at

Municipals'

issues,

14%

.75%

to rise?—,—.

Machine

j.

has

after

ruling

bidding.

[py

notably

No

A ■v

Yes

86%

What
war

-

its

A combination of

63%

.

Yes

14.

bankers

and
•

13.

Commission

down

100.
'

•

conditions be such as to eninvestments? /————

courage

bankers protested
competitive bid¬

-

387c

Yes

•

after

—

Southwest

Gross

bonds

the

did,
however, set the price for sale

business

Will

12.

to

...———;

be

v-day?

of first

of

competitive:

1

taxes

considerable increase.

hearings and without ruling on

any
security—'—
sales letters
—
offering list analysis-

present or higher income

Will

,.»<

of
of

Co.,

bonds

purchased

the

handed

:

postcards—
"blind"
letters,

following question refer to POSTWAR

3%%
& Co.

absence

Now

y'•- i3'%4

'

All

the

subsidiary

$28,483,000

and

ding and sought to block the deal.

(d)

naming

not
(c)

-

647c.

(c)

9%

37%

week

Detroit

&

Railroad

Chicago

the

No

36%

<b).

(a)

of mailings have been most
'
V.
;■/.
'

a

Commerce Commission. Cleveland

—

vertising to compensate for your manpower
shortage?—
——

these earnings do not reflect the true picture as it is today,

earnings for the fiscal year&
June 3Q, 1944, will show

end

to

and, on June 25, offered the issue $544,000 from $480,000 the previ¬
publicly, subject to approval of ous year.
the financing by the Interstate
Current Assets of
and

Have

8.

)

side¬

by

refunding

Bankers

14%

21%

65%

of

Kuhn, Loeb

lators

Investors

No.

not

you

\
•v.

gotten

you

workers,
now

Specu-

new
accounts from war
previously
securities buyers,
investing or speculating?--————

Have

sale

Co.,

issue

this

Ohio!

Pennsylvania
an

even

a

competitive

on

Commission

Pennsylvania,

and
6.

3%s

bidding for railroad bond issues.

No

73%

the year ended June 30, 1943, to provide funds for the payment
of additional interest as shown above.
We believe it significant that

a

has

more

definite decision

Railroad

■

retailing

nothing in

stepped
efforts of Midwestern
banking interests to force it into

Average 41 %

——?.

the
or

& Detroit

once

authorized

Yes

business?

substantial

leaving

with little

The

return

associates

former

your

investment

the

to

of

most

Will

5.
V

stood ready

group

down

67%

'

—

———

an

time, while whole¬

some

take

amounts,

com¬

the way of bonds for its clients.

a

lined up men you want associated
when the war is over?
—
cent of your sales organization
longer
with
you
because
of war

in

The Mayfair House ■ is consid¬
estimates placing ered one of the most fashionable
vicinity of $35,apartment
hotel
properties
in
New York City, its location at the

.

salers in the

to

per

activities?

,

43%

previously mentioned in these columns as one
promise of earning more than 3% fixed annual interest
its bonded debt fulfills our prediction, and earns sufficient money
property

many

The Interstate Commerce Com¬

No

Yes

in

the heaviest for

was

mission

Hurt .v. change

20%

a

Demand from insurance

you

What

formality.

with

panies

Japan
1945, 51%

37%

than

more

Penn. Ohio
'

Helped

work

to war

yesterday

000,000.

QUESTIONNAIRE

Germany

conse¬

offering

through

in ' the

group

1944, 697*

This

which held
on

in

corporatev offering

a

percentages of replies received

estimate for

and
actual

fact, it developed into one of
largest oversubscriptions for

the

unemployment.

INVESTMENT DEALER

group

swamped

that
In

indicating that such a

Have you
with

4.

went

re¬

(MAYFAIR HOUSE)

First Fee Mortgage Bonds Paying Extra Interest At Rate
Of $4.00 Per $1,000 August 1st.

getting

winning

the

60 EAST 65th STREET

and

of the

literally

inquiries,

little

was

prevented were 3% to 1.

INC.

CO.,

LONG

the

itself

with

prevent a dangerous de¬

Opinions

Securities

bidding

v\". HAnover 2-2100

Real Estate Securities

of

clearance

news,

the

quence

1, expect a drastic post-war

helped or hurt your business?
3.

•

in

of

around,

but degree of unemployment will be

the ultimate defeat of Germany?

^ f

But with the
sults

Security Dealer $ Association

41 Broad Street, New York 4

as

public offering was not possible.

able to

not

the

by

months,

spec-

or

What approximate date do

1.

issue

issue

Exchange Commission immediate

depression.

cus¬

Incorporated
Members New York

of-j:

group

the

for

final

await

to

the

orders

buyers

(Answers given

,

had

said

new

investing

now

are

the

103.0879

which

States is expressed

Seligiiianr Lubetkin & Co.

proving the highest.
Since
successful syndicate naturally

by a large ma¬
jority of answers to the question
whether or not industry will be

workers

war

Brothers

of

of more than

Those who expect
such a depression place it about 2
years after V-Day.
Confidence in

Complete descriptive circular will be sent upon request

Corporation

fer

does not, by a vote
to

Boston

Lehman

and

who

dealers

gotten

among

First

the industrial future of the United

questionnaire

had

they

tomers

with

found

2

MARKET: 38%-393/4

Three groups bid for the bonds,

>

Liquidations to December 31, 1942,
80% of Asset Cost
^

was

Carolina Electric & Gas Company.

representative
dealer
doubts that price controls will be
removed soon after V-Day but he

war.

of

35%

sit¬
named

they

war

money

week with the sale

through competitive bidding of an
issue
of
$20,000,000 thirty-year
first mortgage bonds of the South

The

are not keeping
evenings to encourage new

accounts,

least favorably

Tool, .Railroad and Air¬
craft Manufacturing.

Although they
open

be

after the

disclosed this

Machine

investment

the

will

tries

associates

former

to

business after the

opinions as to which three indus¬
uated

Ratio of

3%s

National

of Securities Dealers.

to

Association

ability of investment

Series C-2

-

Mortgage Liquidating Certificates

Concrete evidence of the avail¬

.

conclusions

1st

REPORT

The representative investment dealer in the United States is
looking forward to a substantial increase in his post-war business.

courage
These

K15

OUR

Survey Shows Investment Dealer Looking

407

WACS,
might have cut down enlistments.
"If the shortage becomes very
great,"
"it

will

taking

ages."

Mrs.
lead

in

of

Roosevelt asserted,
to registering and

p?ople_of

certain
V
.

Nat 1 Radiator Attractive
The

current

situation

in

The

National Radiator Company

offers
attractive possibilities according
to a memorandum being distrib¬
uted by C. E. Unterberg & Co., 61
Broadway, New York City. Cop¬
ies

of

dum

upon

this

may

interesting memoran¬
be had from the firm

request.

BOND

/>///

NATIO

SERIES

Securities Series

LOW-PRICED

NATIONAL SECURITIES &
,

Broad Street

:

Investing Corpora-

$17.44 per share,
*

Shares

ued

A Class of Group Securities.

Prospectus

1942 the net assets were $4,>543,444, while they were $4,065,513
on June 30, 1942.
' '>,

I

Net as¬

Inc.

June

i

to

Inc.:

ended
30, 1943 and an increase of
for the 6 months ended

June

>

i

34%

June 30, 1943.

Corporation:
30,
1943

Capital

General

i

Net

assets

June

on

amounted to $5,986,928, equivalent
to $31.98 per share. This compares
with a per share asset value of
\ $26.01 on December 31, 1942.
,
;

poration:

-

Cor-

Shareholdings

General

;

Net assets,

before de¬

ducting bank loans, were $14,465,on June 30, 1943.
Net assets

>009

December 31,

at

1942, were $10,-

896,718 and on June 30, 1942, were

H

$9,387,527.

Incorporated

were

at

$11,209,962

1943, equivalent to $6.86

share of the company's stock,
which had an asset value at De¬

per

cember

1942,

31,

On

$5.20.

of

30, 1942, the asset value was

June

$4.23.
New York

Stocks, Inc.: Net as¬

31, 1943 were $6,-

sets as of May

In tne six months from
30, 1942 to May 31,

719,109.

November

1943, 17 of the 20 Series outper¬
formed their comparable market
George Putnam Fund:

30, 1943 net assets were $7,680,000,
equivalent to $17.39 per share,

with

compared

$15.06

per

I> 866.77,
after distributions to
> ; stockholders amounting to
■?. $957,287.80.
Net asset value per
: share
increased from $14.64 to
Shares outstanding in¬
from
2,341,086
to 2,-

$19.99.

-

creased
;

393,738.

Industries

Selected

"S2":

Net assets totalled $5,065,-

117

May 31, 1943,

on

double

the

November
of the ten

or more

than

$2,103,411 total as of

30, 1942.
Total assets
Keystone funds are now
-

30,

assets

$20.82

State

Street

Investment

Cor¬

asset value of $43,232,069 on March 31, 1943, equal
to $74.15 on 583,046 shares then

pares

with

Tri-Continental

Corporat ion:

stockhold¬
ers
shows net assets, before de¬
ducting bank loans and funded
debt, of $34,355,600. Assets at De¬
cember 31, 1943, were $25,610,063
and on June 30, 1942, were $22,803,351.
, /'
•
■

figure

of

Trust:

$14.61

from

42.5%
on

the

twelve

period,
number of shares outstanding

from
to

6,037.912

on

30.

June

the
rose

1942

Custodian Funds
Certificates of Participation

Sfries

and

Bond

Net

Share

assets

on

Cor¬

June

360,000 shares of capital stock out¬

standing.

This

compares

net asset value of

with a

$22.93 per share




Man's Bookshelf
Power
to

Reference

With Special
and Alti¬
Corpora¬

Engines

tudes—General

Motors

Inflation In One Easy Lesson-

of

•

;

~

Club

Bond

National Bank of Memphis; *Hugh
tional

of

Dept., First Na¬
Memphis; *Early

Bond

Sinclair,

Municipal

the.

Bank

request.

of

Gordon

Dept., First Na¬
tional Bank of Memphis; *Frank

International Monetary Mechan¬
ism—The Keynes and

White Pro¬

posals—Friedrich A. Lutz—Inter¬
national Finance Section, Depart¬
ment of Economics and

Social In¬

Princeton University,
stitutions,
Princeton, N. J.—paper.

Frederic, L. K. Thompson and Co.

Memphis
E.

Mitchell,

are:

Their Causes and Nature—League

National Bank

Memphis;
H. Davis,
Bond Dept.,

A.5—Columbia

Temporary Injunction Suit

National

2960

Bank of Mem--

Against Investors Synd.

phis; Julius
Franks, Her¬

United

MINN.

MINNEAPOLIS,
States

—

International
N.

1943,

University

II.

Press,

Documents Service,

27,

York

New
Y.—paper—50c.
.Broadway,

In
Trade Relations Between Free-

District Court this

Market and Controlled Economies

Judge
Gunnar H. Nordbye, H. Russell —League of Nations Publication
1943.II.A.4—Columbia University
Kelly, Attorney for the Securities
Press,
International
Documents
and Exchange Commission, asked

morning' before

Bensdorf

Company;

Gal-

for

Gold-v

a

Federal

dismissal of and withdrew

Service,

York
M. A. Saunders

smith,
Bullington-Schas & Co.; R. S. Harris,
M. A. Saunders & Co.,. Inc.; R. H.

Joseph

Publication

SEC Asks Dismissal Of

Joe

Q.

Nations

of

of

First

Controls,

Trade

Quantitative

*In Armed Forces.

First

Dept.,

Bond

J., Marks;

.

Gordon

the

motion

commission's

temporary

injunction

panies.

This

scheduled

for

motion
a

a

against

Syndicate

Investors

three

for

com¬

had been

hearing

before

21... :./
12 the court denied the

2960

Broadway,

New

27, N. Y.—paper—$1.00.

Spare Time—A War Asset For
Workers—Division of Recrea¬

War

tion,

Federal

Security

Agency,

Social Security Building, Washing¬
ton

25, D. C— paper—no charge.

Judge Nordbye on July
On

July

SEC's motion for a temporary re¬

/

Tin

And

Its Uses—Review

No.

14 of the Tin Research Institute—

Battelle

Memorial

A / War

Economy

Institute,

505

Standard. Securities Co.; straining order against Investors
King Avenue, Columbus, Ohio—
Leftwich & Ross;
Syndicate, Investors Syndicate of paper—no charge.
/ ' '/
M. A. Saunders, M. A. Saunders &
America
and Investors Mutual,
Co., Inc.; F. D. Schas. BullingtonWage Rates and Living Costs In
."/
Schas & Co.; Wendell Spraggins, Inc..;,.- v:'

Howard C. Ross,

S-1, 2, 3, 4 in Common Stocks
Prospectus may be obtained from
local investment dealer or

your

The Keystone Corp. of
CONGRESS STREET,

on

Roger

Corp.;

Rison,

Series

50

as

Meeks, Gordon Meeks & Co.; Sam

K-l, 2 in Preferred Stocks

30, 1943, amounted to $8,572,556,
equivalent to $23.81 per share on
:

Members

Ross;

Series

$6.85 per share on May 31, 1942.
National

mitteeman for the

with Mr. Davis

<s>———., / '"

Com- curities

Co.; W. G. Leftwich, Leftwich &

B-l, 2, 3 and 4 in bonds

31, 1943, net as¬
$9,529,561 or $10.01 per
compared to $6,150,365 or

were

poration:

The Business

Traders Associa¬

/ .//.,-,/
Wooten,
Memphis Club, Municipal Bond & Investment Co.;
alternate. ;/,, *Joe Denham, Bond Dept., First

Meeks & Co., Treasurer.
Mr. Saunders is National

Jordan, Gray Shillinglaw & Co.;
J. C. Lancaster, Bond Dept. Union
Planters National Bank & Trust

investing their capital as follows:

Investors Second

Fund: As of May

share

in

Trust Funds

this year.

sets

Cathedral

tion, Detroit, Mich.—paper.

The executive council of the National Security

ing; Ed.

6,760,460 at the close of June
Massachusetts

of

member

Church, Newark.-

Ira Haupt & Co.

NSTA Affiliate

breath,;; Ex¬
change Build-,

Keystone

corre-

month

a

Trinity

etc.—

Municipal Bond Club OflMemphis Becomes Hew

&

the

During

sponding date last year.
the

was

of

vestry

Airplane

T.

$140,775,486 or
share on June 30, 1943,
of

the

"

man

Investors

he

service

Crossett, Bond

outstanding.

were

increase

an

t

per

H..L. Federman,

Jer¬

Bond Club of Newark and the
Municipal Bond Club of New
York.
Until the time he entered

sey

net assets,

1943,

,

Massachusetts

Net

Downtown Club and the New

General

Carbide,

Union

Robin¬

underwriters and deal¬
ers in municipal bonds.
He is a
member of the Essex Club, the
& Co.,

son

before tion, Inc. has accepted the application for affiliation of the Municipal Harry Scherman—Council for De¬
deducting bank loans, were valued Bond Club of Memphis, Tennessee.
mocracy, 11 West 42nd Street, New
at $32,707,151.
York City—paper—10c. (If quan¬
At the end of 1942
Officers of the new affiliate are:
net assets were $26,032,831, while
M. A. Saunders, M. A. Saunders & Co., President; Joe H. Davis, tities of more than one hundred
at June 30, 1942, they were $23,First National Bank of Memphis, Secretary; Gordon Meeks, Gordon are desired, prices will be quoted
June

reported to be in excess of $61,-

000,000.

utility companies, and companies

On

Inc.:

The June 30 report to

Keystone Custodian Fund Series

Harvester,

ternational

Electric,

share

807,165 on June 30 amounted to
$79.54 per share on the 588,439
shares
outstanding.
This
com¬

from

I

a/favorable

maintain

we

while President of Colyer,

companies which are expected to
enjoy a favorable post-war busi¬
ness, companies like Chrysler, In¬

viewpoint towards leading indus¬
trial securities as well as public

the com¬

Major Robinson applied for his
from Newark, N. J.

poration Preferred stock. On the
other hand, we continue to main¬
tain a favorable attitude toward

It is for this reason

Colo., in September, 1942.
was "originally
assigned as

commission

ferreds, Electric Power and Light
7% preferred, and United Cor¬

turing activity with the cessation

Maj. A. R. Robinson

spector and a member of
manding officer's staff.

stocks such as
and Light Pre-

Power

the

provost marshal and since July 7,
1942 has been administrative in¬

has risen 98%,
has

53%.
It is generally
public utility shares

preferred

American

cushion the letdown of manufac¬

that

He

post-war period will have

various

post-waif period should mate for
a relatively long period of favor¬
able business activity. ; This should

at tne end of 1942.

poration: Net asset value of $46,-

value

pent-up demand.
This, to¬
gether with large volume of busi¬
ness
necessary for rehabilitation
and construction 'purposes in the

of hostilities.

gan,

than the railroad
stocks./In this category we main¬
tain a favorable attitude toward
North American
Company, and

of

Corps,

graduated from the administra¬
tive inspectors' school at Fort Lo¬

greater appeal

quent shifting of manufacturing
activity has caused a large amount

as

April 29, 1942 having been trained
at the OTS at Miami Beach, Fla.,
with the
class of
1942 B.
He

believed that
in the

his

States,

whereas the Railroad average

period and the conse¬

war

re-

d

v e

of

stocks. The railroads

Dnly risen

the

United

enjoyed

lic Utility average

com¬

ac-

d

Army

On June

increased
$34,253,144.74 to $47,846,-

net asset

and

e

He

Air

general
securities

averages.

632,172.
Investors: Dur¬

babies"

"war

t

captain in the

terday's close the Dow Jones Pub¬

ness.;-

ing the first six months of the
year

of

i

al 1

commission

railroad com¬
general¬
ly have, been considered "war ba¬
bies."
From the .1942 low to yes¬

War will

m

who

v a

c e

;han that enjoyed by

mon

,y

of offi¬

base.

the greatest per:entage rise. The rise of securities
n this category has been greater

panies who have benefited direct¬
ly or indirectly from war busi¬

STREET—NEW YORK

assets

Net

June 30,

of 64% for the 12 months

,

Incorporated

end of last year.
National Investors Corporation:

increase

an

have

important factor in the

an

trend

of the

duration

t i

the

to

utility

public

Harry

1942
with

21,

cers

President's

the

..Contrary

course.

play

March 31 and with $20.19 per

on

$9,548,123 on

shows

tural

share at the

per

value

asset

Request

The

1943.

30,

$21.53

on

However, it is too

until

opinion,

decline has rim its na¬

present

DISTRIBUTORS

63 WALL

This amounted
share compared
with $16.12 per share on De¬
cember 31, 1942.
The per share

•

After several months

security prices. In our opinion
these
factors will continue to
manifest
themselves
after
the

The

GROUP#

taking securities at market
value, increased during the quar¬
ter ended June 30, 1943, to $11.644,323 compared with $10,858,925
sets,

II Net assets totalled

to

June

speech and additional war devel¬
opments take place, and their ef¬
fects are analyzed.

on

of

Fundamental > Investors,

halting the up¬

of investment

respectively.

)on March 31, 1943. Net asset value
per share increased from $9.65 to
<$10.05 over the same period.

in

direction

coupled with the plethora
funds, have contin¬
exert an upward pressure

power,

1942, and

Fund, Inc.:

in the year were

'

since

base

early to gauge which type of se¬
curities will be leaders /in / this

\

hesitation, the markets pro¬
pelled into new highs.
/ :
The
large
generated
buying

Investing Company

Ltd.: Net assets, before de¬
ducting bank loans, were $5,465,>602 at June 30, 1943. At the end

Chemical

then

factor

ward trend.

.pany,

I

■■

remarks earlier
a

Administration/ Com-

Capital

group

The President's "'hold the line"

„

been at the air

market

market rise.

Major

has

Robinson

the present

prices.

captain

by

Air
Major

field.

become the basis for the trend of

Reports

1942, was $20.82 and

June 30,

on

Army

arriving
the /.s

motivating factors of the stock

of Arthur R.

from

Walla

sell-off, it is
opinion that selectivity will

our

of

company's

Walla

trend.

After

Major

the

of

cer

the scheduled Presidential
speech for tomorrow night, have
provided the upsetting factors and
have caused traders to reappraise

were

liquidating value of the
stock on December 31,

re¬

plus

Chicago

^

$6,575,961
at June 30,1943, giving a liquidat¬
ing value of $27.23 per share. The
Net assets

tion:

sudden

The

major

announced

was

while

to

;

WASHING¬

WALLA,

Promotion

—

Robinson

the

J/i

5

Boston 208 So. La Salle St.,

Company

ac¬

versal of the European war news,

.

Investment Trusts
Investment

market

stock

overdue.

was

RESEARCH CORPORATION

10 Post Office Square,

Angeles

//\::///;/>/
of

..WALLA

adversely affected
by taxation or Governmental re¬
strictions, as these measures may
be^considered as temporary and
likely to be in effect only as long
as the war is prosecuted, will re¬
sume a more favorable earnings

tivity have long pointed out the
fact that a technical
correction

request

Broadway, New York

120

,

Gilmore, commanding offi¬

Students

TRUST FUND

upon

Promoted To
TON.

fields.

Prospectuses

210 W. 7 St., Los

SERIES

SERIES

FIRST MUTUAL

in¬

shakeout since the

its greatest

representative securities in the4>—
*
utility,
railroad
and industrial which,

PREFERRED

STOCK SERIES

has ;had

market

ception of its rise in April 1942/' Up until the present stock market
break, the Dow Jones Industrial averages have had one of the
greatest sustained rises without a major interruption. The severity
of the present decline can best be measured by a comparison of
the Dow Jones industrial averages, and by the measure of various

INTERNATIONAL

LOW-PRICED COMMON

stock

The

SERIES

STOCK

BOND SERIES

Arthur Robinson Is

Stock Market

\

INCOME

:

Thursday, July 29, 1943

COMMERCIAL & FINANCIAL CHRONICLE

THE

408

«■!

Boston

BOSTON, MASS.

Thomas,
J. Nick

—

Maurice

S.

the date of Brody—University
of
Chicago
Herman Bensdorf & Co.; August 30th for the trial of the Press, 5750 Ellis Avenue, Chicago,

Municipal Bond & Inv. Co.; E. C.

Thomas, Jr., Equitable Se-

Judge Nordbye set

Commission's

case.

111.—paper—$1.00.

Volume

158

Number 4198

Wk-MWi

Ipp*

Industry is helping win the

war...

industry must help build a peacetime world
After the

is

war

decisively won.1.,

what kind of world is essential for

This

question is being asked today everywhere in the world.

No expert

It

must

is needed

be

world

a

children

are

rt

How can Such

a

way

'

•

is

to

cussions

must

be

|||||

as your own

;

*

r-.

-

1

I

r

1

»

world be

mm

busy world where factories'

a

working and where there

*
'

answer,-

peaceful and neighborly

as

decently. It

and farms
\

tell 'you the

to

world in which1 decent people can bring up their

town; a

*

just and durable peace?

a

'

•

,

,S i-

\

are
/

*

7*

>

V

>

.

*" '

j

'

the

1

>*

.

VmS

1

brought into being? The,surest

think and talk about it. Full and complete dison

iB
IS

V

jobs for all.

porches of this "country,

over

t

-

its fences, in

churches, schools, clubs, and. always at meals—that is how
the

terms

of A

formulated.

l

V

in

|\
111

your

.

}."

...

|||;
\

Only

be

your terms

be such that the people of other lands

with them. There must be provision in
tained

can

J|§ill

discussions keep in mind this fact;

peace must

IJI

JUST AND DURABLE PEACE

•

your

of

can agree

plans for

sus-

production and for consumption of that production.
a

world

of good will

peace
can

that squares with the conscience of men

be just. Only

INTERNATIONAL

THE

a

just

peace can

NICKEL

endure.

COMPANY,

INC

Subsidiary of The International Nickel Company of Canada, limited
♦

New York, N. Y.

^

A warded to

Huntington Works

§111#




THE COMMERCIAL &

410

FINANCIAL

CHRONICLE

Thursday, July 29, 1943

problem

we'll

would be

wartime

of exchange versus over-the-counter trading, it
as
eager to see unsuitable securities removed from
exchange trading as to see suitable securities admitted to
exchange trading. The points cited in some of the fore¬
ex-, going paragraphs appear to strongly suggest that actually the

Proposed Rule X-3A12-4
(Continued from first page)

question has slowly shifted. This has encouraged the
changes to think up ways and means of attaining unlisted
trading privileges for securities traded over-the-counter. A
recent example has been the attempt to gain unlisted trading

Commission has far

interest in

more

facilitating the admis¬
sion of additional securities to
exchange trading than in the
^removal of even those securities which are
hopelessly unprivilges for the stocks of all companies with assets of $3,- suited to the auction technique, and where serious injury
to the
000,000, and having 300 or more stockholders. Another ex¬
investing public is involved.
At the present time it seems that the most vital
ample was the campaign conducted some time ago under
point
the
heading
"Equalization." Proposed Rule X-3A12-4 at issue, namely the specialized characteristics of the two
constitutes another effort in this

direction, this

one

rated

ments,^Municipals, etc., "afcd such other securities (which
may include
unregistered securities, the market in which
.

.

which

those

if

trading and

required the facilities and technique of the

in the minds of the Commissioners.

In its "Report on Trad¬
ing in Unlisted Securities Upon Exchanges" made by the
Commission following a comprehensive study years ago,
the Commission stated that: "Admitting a security to trad¬
ing privileges on an exchange amounts to a representation
by the exchange that an appropriate and adequate market
for that security exists on that exchange. . . . If that repre¬
sentation is incorrect, the quotations which an exchange
disseminates are misleading and have a tendency to react
harmfully upon the bid and asked prices for that security
in other markets.
Consequently, no exchange should be
permitted to admit to trading privileges a security when
the admission of that security to
trading privileges on the
exchange means a misrepresentation to the public that an
appropriate and adequate, market for that security exists
upon that exchange." ®
The volume of

trading in many of the stocks on the
New York Curb Exchange
during 1942 was entirely inade¬
quate for the requirements of an action market. For ex¬
ample, in 174 issues on the Curb the total volume of trading
during 1942 amounted to less than 1,000 shares per issue.
ThisTs equivalent to about 3 shares per
trading day. Apply¬
ing the phraseology of the Commission's own report quoted
above, it is clear that the quotations disseminated by the
exchange on these securities were misleading, and the Curb's
trading in these securities meant a misrepresentation to the
public that a proper and adequate market for the securities
existed upon that
exchange.
Despite the injury to the investor which necessarily re¬

sults from this kind of auction market (an auction attended
most of the time by neither
nor

sellers) the Com¬

mission shows

no
interest in the removal of securities of
It is true that in recent
years occasional se¬
curities have been removed from
exchange

this nature.

trading.

far

so

as

we

The 1934 Act had

its purpose

as

listing

financial state¬

It may provide
agreement that annual meetings be held in a
location reasonably accessible to
stockholders; and it may

in

such

an

At the risk of appearing obvious, it seems
desirable at this point to restate the
elementary fact that a
market is
satisfactory for the investor in proportion as it af¬
fords a
satisfactory medium for the effecting of purchases
sales.

An

exchange market does

not

medium for transactions unless there is
of turnover to permit of a true auction.
in the

afford

a

good

sufficient volume
This was recognized
a

Act, which provided that adequate distribution and
public trading activity in the vicinity of an
exchange must
be established

by the exchange in order to show that the
extension of unlisted
trading privileges was necessary or
appropriate in the public interest or for the protection of
investors.
Similarly, the vital nature of this consideration
is shown
by the fact that in applications for unlisted
trading
privileges most of the argument generally revolves around
the

question

as

to whether adequate distribution and
public

trading activity in the vicinity of the exchange
demonstrated.
As

mission

a

can

some

from the New York

the

duties

responsibilities

judge, including particularly that of impartiality.
Commission maintained




an

"Times",

of

full

employment
income in
standard of

money

war
prosperity, our
living not only does NOT rise, but
on
the contrary, falls.
The
difference between the spendable
income going to individuals and
the supply of goods and services
available is commonly referred to
as the 'inflationary gap.'
This in¬
flationary gap has been constant¬
ly widening since 1940 and, ac¬
.

.

.

of

a

If the

impartial attitude towards the

.

.

.

taken

were

and would endanger

money wages

their

.

life

savings as well, they
might forego wage increases, ac¬
cept higher taxes and buy more
bonds.

war

"But the Government has failed
to bring home to the people the
necessity for 'drawing off the ex¬
cess
purchasing power, both in
dealing with labor and its cam¬
paign designed to promote the

as no copy

inflationary.

sion of securities to

exchange trading is advantageous to the
investing public because it may result in certain secondary
benefits, such as the dissemination of more data on the
company s affairs

and the

holding of annual meetings at

points accessible to the stockholders. These
secondary ob¬
jectives are certainly desirable. However, the Commission
will

injure rather than aid the investing public if it adopts
policy which' results in substituting a seriously inadequate

a

auction market for what is in
many

instances

factory over-the-counter

market,

secondary benefits

mentioned

as

are

in

order

quite satis¬
gain such

a

to

by Mr. Treanor.

The

substitution of

a
poor market for a better one means an
umistakable deterioration in the facilities vital to the
invest¬

ing public.

On the other hand, the practical utility of the

benefits which he cites would in
many instances be small,
or even non-existent.
Most of the companies with over-thecounter

securities

exchange

which

trading,

stockholders.

would

already

As far

be

even

issue

considered

satisfactory

for

reports

to

the location of annual

as

meetings is
concerned, anyone who is in the habit of attending stock¬
holders' meetings conveniently located in New York
City
knows that stockholder attendance

ditions of maximum
instances

under these

even

accessibility is

very

stockholders whatever

no

ested to go

are

con¬

the

a

bond to

Government
bank's

books

In

amount.

bank

takes
for

when

the

is

Bonds

sold

has

nor

the

public been given the facts of the situation in the opinion of American
manufacturers and business men who on July 25 urged three posi¬

to

the

as

Manufacturers, reviewed the "piece-meal approach"

to the control of

cluded

that

and
attempt
to sit on the safety valve" and
that "they do not reduce the ex¬
plosive forces that are being gen¬

regulations

erated

the

"price

are

controls

merely

an

through steady increase in

supply."
Warning that the
monev

results
in the

of

.

most

'•c

measures:

Greatly

adopted

sales

following

<

increased

brackets
have

taxes,

taxes, should

immediately.

been

of

cits

be

The rates
on

personal

in¬

the maximum limit.

...

be

re¬

,

possible of

as

of financing

the

defi¬

war

because

to fan

the

such financing tends
the flame of inflation
.

sale

of

bonds

to

.

.

in¬
vestors must be increased by vol¬
untary methods as far as pos¬
sible—by compulsion if necessary.
"3. Wages must be stabilized be¬
private

increases in wages start an

cause

upward

of rising prices.
wages tend to increase

spiral

Increased

and increased

costs lead

higher prices which in turn
ates

a

demand

further

for

to

cre¬

wage-

The

1hat

publication

war

prosperity

emphasized

was a

"phony"

prosperity, adding that "the
er

we

face

same

effect

printing
procedure which

a

of
is

"On

the other hand when the
sells a bond to a

Government

private

individual

to

or

non-

a

banking institution, the purchaser
either reduces his current income

past savings and

or

no

is created

ary money

inflation¬
in order

...

that the Government receive suf¬

ficient cash to carry on the war

dangers
of

of

present

is imperative in order
excess

purchasing

A broad tax base such

as

general sales tax should be de¬

vised

to

supplement the already

existing laws which
the

rich

limit.

.

and

.

are

'soaking'

business

to

the

.

"The most serious results of in¬
flation

usually

in the post¬

come

That

period.

was

true in the

United States following the Civil
War and World War

true in

I, and it

was

Germany, France, Austria,

Italy, Poland and other countries

following World War I. The worst
inflation

occurs

in post-war years

when restrictions which

are

pos¬

sible and accepted in wartime are

suddenly withdrawn.
conceivable that
a

we

While it is

develop

may

rigid system of price ceilings, a

policy of 'rolling back' prices

producers^nd subsidizing the

on

pro¬

ducers, it will be difficult to

increases."

the

already pushed

far

as

necessity

costs

corporate income and

come

serious

usually come
postwar period, "Industry's

preventive

upper

-

inflation

View" recommended the

"1.

V

lieved

should

banks

in

result

universally opposed.

war

The

relatively.

banks

wholesale

money,

of action to reduce the "inflationary gap."
The current issue of "Industry's View," published by the National

"2.

time

a

consumer

declining

which have almost the

tive steps

prices and wages
for the last two years and con¬

of

rapid expansion of bank deposits

a

of

additional

that which might be provided by

Govt. Action; Offers Preventive Measures

Association

way,

this

equivalent

volume

goods

the

on

an

credit is created at

tax systems

has not been faced frankly

bank, the

a

credit

without

InMry Warns Of Inflation Peril; Urges

seem

people that when the Govern¬

ment sells

augmenting
slight. In many
sufficiently inter¬ inflation, a revision

to the meeting.

inflation problem

would

prevent inflation would be to tell

power.

The

It

that the most effective procedure
the Government could adopt to

to draw off the

on

and

spite

increased

of the letter itself sale of war bonds to individuals.
is available. If the
excerpts quoted by the "Times" are at Practically no effort has been
all
representative, they are very significant as an indication made to show the people why the
sale of Government bonds to the
of the line
along which the Commission is reasoning.
In banks rather than to individuals,
effect, the Commission appears to be saying that the admis¬ is

especially

of

;

The above quotes from Mr. Treanor's letter

be

regulatory body, the Securities & Exchange Com¬

has

and its affairs."

the welfare of the in¬

vesting public.

and

"In

and

.

How¬

know, the initiative in these cases has
almost always been taken either
by the issuer or by dealers.
Rarely, if ever, have the wheels been set by the Commission.
ever,

states:

over

embody other provisions which will serve to aid investors
this basic distinction still remained0 clearly and forcefully in arriving at at informed judgment
concerning the issuer

buyers

;;of

further

It

For

It would be well for the investor

over-the-counter dealer.

nature

real

40 billion dollars in 1943.
are
tending to dominate the Commission's policy.
"All along, there has been prac¬
example, James A. Treanor, Jr., director of the trading
tically
unanimous
agreement.
and exchange division of the
SEC, in a letter to the securi¬ among economists, both liberal
ties industry, commented that if the
and conservative, as to the need
exemption power in¬
for 'drawing off' the excess pur¬
volved in proposed Rule X-3A12-4 were
exercised, holders
chasing
power
of
individuals
of exempted securities would not
receive the benefits of all
which results from our distorted
the safeguards which are afforded to
holders of registered wartime
economy.
-.
If the
securities. He pointed
out, however, that listing would give workers of the country fully
the security holders and the
realize that a runaway inflation
public more protection than
would wipe out any gains in pur¬
they now have in the over-the-counter market.
"For ex¬
chasing power through increased
ample," he said, "the exchange may provide in its

siderations

predominantly intrastate) as the Commission may . . .
exempt. . ." In proposed Rule X-3A12-4 the Commission is
falling back on this exemption loophole. The interesting
point is that this potential exemption has always existed in
the Act, but during all these years the Commission has not
attempted to make general use of it. It seems quite doubt¬
ful whether the original members of the Commission would
have felt that wholesale application of this exemption clause
was in accord with the spirit of the legislation.
agreement with the issuer that the letter's
The SEC, as originally constituted, understood the vital ments adhere to certain minimum standards.
is

distinction between securities suited to auction

the

inflation."

inaugu¬ different types of market, is receiving little more than
ceding tp ? recent estimate of the
formal attention, and that other and less
important con¬ Department of Commerce, will be

by the Commission itself.
The 1934 Act defines exempted securities as Govern¬
.

realize

this

fact

the

soon¬

sooner

re¬

tain

the

any

or

all of

post-war period.

prices

may

these

Then,

in

runaway

wipe out all assets and

savings. ..."

'

•

;j-

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

158

T

1

•:

•

•

*

-

,

,

Sees No Need For
Opportunity For Investment Dealers

of

advertisements

is available.

ally

successful

adaptable to

by actual

results

your own

individual

These ads have produced

be

Canadian Pacific

President

the

of

Chairman

of

Committee

tests.

arranged—the cost is moderate.

War

the

of

New

of the

advantages

'-U

Finance

is

it

that

14 Wall

enough to permit Bond buyers to
continue meeting vital
commit¬

Bell

ments for life

insurance, mortgage
payments, and other non-inflalionary investments, at the same

The Securities Salesman's Comer
'

'

1

' '"

'

"

,

*

1

'

'

'

Your Best
Sometimes it

is

.V

.v

V

'

'

'"

1

,

'

time

ments."

Prospects Are Your Customers
even

Morgenthau's

releasedJuly

the

where

Col.

few days each month for

with Mr.

always look

"servicing old accounts." Distant pastures
attractive. Besides, it requires considerable plan¬

confer

the

pre-call research of the customer's holdings on the

D'Olier

National

Bond

on

Loan,

was

result

Jersey chairman.

of

such

calls,
usually neglected.
Of

there

course

that old' customers

therefore follows

it

Col.
some

are

individuals who do not

care

more

people

are

a

from

said

D'Olier

that

current

non-inflationary

invest¬

well

own

of

East

pressure.

The

well

Crest and Davies

or

is

under

now

control

Gas pressure was reported to

great and indications

very

the well will be

are

securities

voluntary purchase of War Bonds,
it

is

contributing

tion."

He

mature

toward

discussion

infla¬

urged "that the
of

pre¬

compulsory

substantial pro¬

a

area.

salesmen who actually make
or

tary

savings where the

proceeds

THEIR FIRST

MAKE

EVER

You may

with which

should

we

it

are

is

West,
in

personally familiar.

Next week we are going to

plan he Uses can be made adaptable to practically any

with

the

possible

TOMERS.

certain

very

REGULAR

THE

FORGET

asked

on

every

resources—the

great frontier

the

turn

of

of

cans

in the country—we

are

millions

who

the

century

is

the

said on July 22 that the

Treasury will probably have to borrow $33,000,000,000 before the end
of 1943 but that it has not yet been definitely decided whether or

Fourth War Loan Drive will be needed in December.

Morgenthau told his press conference that another financing
will depend on the rate of Govern¬

•drive before the end of the year

spending and

tm

the amounts

.

...

...

v

.

1

...

$15,000,000,000 Third sales, would account for $23,800,War Loan Drive, starting Septem-' 000.000, leaving an additional $9..200,000,000 needed before Dec. 31
ber 9, is oversubscribed.
In Associated Press Washington —but only $3,200,000,000 if the

-to which the

advices

it

was

also stated:

War

drive

Loan

hits

40%

the

patriotic

Ameri¬

supporting the vol¬

need

some

us

any

This Year-4th War Loan Drive Possible

ment

make

to

a

de¬

The Secretary continued:

you

doubt know, many

no

believe that consideration of

sort

of

800.000,000.
- ■ •'. .1 '•
"Regular war-bond sales apart
from the Third War Loan Drive,
.

were

expected

000.000.

.•

to

total

the

$4,000,-

actual

as

drive, if

goal is reached,

together with announced borrow¬
ing from banks and normal bond




would be $19,000,000,000,

against

tary method.

There is

no

dication at this time.
exceeded

world

The
have

two

"Should

the

December

drive

be

Treasury officials
it' .would
be
in¬
provide funds' for 'a

upon,
that

stressed
tended

a

to

year-end

carry over as

meet the 1943 deficit.

well

as

assets

of

soared

to

Aluminium, Ltd.

from

a

figure of $70 million to

pre-war

$350
While the company has
over

each

of

dividuals in

and

fixed

weight

incomes

commitments, who
people- who

the

her

plant

crux

of

the

are

That is

have

support

on

and

activities at the highest level in
her

history, the Bank of Montreal
in

states

its

July

22

"Business

Summary." The bank states that
the

physical volume of business,

according to the index compiled
by the Dominion Bureau of Statis¬

tics, shows that in the first five
months of 1943 productive opera¬
tions advanced by about 20 % over

the level for the similar

reflecting

1942,

continued

the

period of

the influence of

such

the

"Figures published by the De¬
partment of Munitions and Supply
reveal that from July

June

14, 1939, to

30, 1943, war contracts and

commitments

dian

reached

British,

on

other

and

total

a

savings

value

of

had

$8,914,-

359,567, a figure which would be
by

some

of

hundreds

millions of dollars if letters of in¬
tention and unvalued acceptances
of tenders

were

the

total,

To this

included.

contracts,

including
on

Cana¬

account, contributed $4,266,-

254,061, while contracts placed by
the Civil Aviation division for the

construction

of

airports

for

the

Commonwealth Air Training Plan
accounted for

an

additional

sum

of

Contracts placed and

$47,895,869.
commitments

made

on

behalf of

Government for sup¬

programme,

plus orders for these

plants, had an aggregate value of

$3,702,964,187, while the value of

,

We specialize in

CANADIAN
Government

-

Municipal

It is estimated

that at least 55%

of the total na¬

production is now devoted

tional
to

war

the

purposes

and that 70% of

industrial output is

for them.

Corporation Securities

accounts

$897,245,450.

was

required

This proportion is not

likely to diminish much until
war

ened

H. E. SCOTT CO.
Wall

St., New York 5, N. Y.

WHitehall 3-4784

slack¬

and at present the Govern¬

ment's programme
sion is less than

Tele. NY 1-2675
a

the

ends but the effort to enlarge

industrial capacity is being

49

method to the fullest extent."

Cana-

accounts

plies and for the plant extension

heavy

voluntary

the

Continuing the bank says:

J.

year

'those

reason

of

expansion

operations of war plants.

the British

least able

one

second

economic

contracts placed on other

crushing

should

begun
with

dian

the first six months

with

afford it.

has

1943

plant extensions, placed

new

of this year.

to

of

much it will benefit from its

such in¬ which forms the
present squabble.

drives,

undertaking.

from reaping huge
profits by operation of EPT, how

We have

in

goals

our

War ;Loan.

half

increased

aluminum.

in

Blyth Taylor, for the past
special assistant in the De¬
have raised $7,000,000,000 from in¬ partment of
Finance, Ottawa, has
the

with

$14,500,000,000 in

January-June period.
decided

V,

"Thus, the September
I only

will be able to undersell the

ada

Treasury has

revenues

one

savings

legislative

"One of the great weaknesses
already ob¬ over-subscription mark of the two
tained $2,700,000,000 in notes and earlier drives.
of a compulsory savings plan is its
"The
Treasury has
estimated
■'.■$900,000,000 in certificates from
iack of flexibility.
To get from
that its spending in the last six
banking sources since July 1 and
a
compulsory savings
plan
as
will add., approximately $1,200,- months of this year would be $52,•000,000 from its normal weekly 000,000,000 as against $43,000,000,- much as we can get through the
000 in the first half, and that its
bill operations, for a total of $4,voluntary method would bear
"The

properties.

cluding

Great Britain and
help finance these
The agreements, in¬
with the Canadian

facilities after the war is
anybody's guess. The figures show
that the company's enterprises in
plan should wait until there is
Canada
have
some indication that the same or
been, since 1937,'
better results in obtaining funds very profitable. That they should
become even more profitable on
from
non-inflationary
sources an
immensely-expanded capital
cannot be achieved by the volun¬ base after the war is a possibility
of

Mr.

of

are

in his

Canada

S.,
to

with

U. S. Nesds To Borrow $33 Billion More

a

payments
on
purchased were made

been prevented

"As

.not

Advance

million.

cision."

Secretary of the Treasury Morgenthdu

the firm
of
Taylor,
Co., at 64 Wall Street, to

Activities At Record

last

this continent.

on

untary system, until we are faced

very

pleased to report.

-

only reasonable that
a plan
postponed, in fairness to

discussion of such

should be
the

street

shaw.

Australia

seems

serious

"Do you know where I can go

bonds?"
main

tion, it

CUS¬

And this question is once again

asks them someday,

buy some stocks and

being

of

territory
large metropolitan

If you do they are likely to forget about you, when one

their friends
to

exception

Meanwhile—DON'T

; centers.

Deale &

vast, virgin territory rich

a

natural

Government, are such that they
permit the company to write off
troactive on 1943 income.
Even its entire wartime expansion in a
if Congress should decide even¬ period of 2V2 years. When these
write-offs are completed at the
tually that a compulsory lending
end of 1944, it is likely that Can¬
plan would help to control infla¬

salesman gets this kind of customer cooperation.

one

pending

the future of the Canadian North

voluntary effort aluminum
if at all by the U.

of

reply, Secretary Mor¬
genthau stated that "Congress has
made it clear that any tax bill
passed in 1943 would not be re¬

CALL.

The

how

closed

organized

success

maintained,

his

In

think this is stretching it a bit but there are such cases

you

be

possible."

CUSTOMERS BEFORE THEY

tell

voluntary savings. Patriot¬

ic incentives

most of their sales either to old accounts

SOLD FOR THEM BY THEIR

remain

light of this development
interesting to contemplate

ultimately invested

affect

There are

ACCOUNTS THAT HAVE BEEN PRACTICALLY ALL

to NEW

BUT

the country.

over

will

In the

-

are

doing it all

its

ducer.

whatever
its
virtues,
should not be permitted to ham¬
Another phase of Canada's de¬
per the great flow of voluntary
reminiscent
of
this
anti
inflationary
investments." velopment
around
Col. D'Olier also said "all volun¬ country's growing pains
savings,

customer to recommend the services of a

are

and

He said that "to the extent

that the discussion discourages the

salesman.

who

men

under

bef*-

that

-

are

"blew in"

"

in Gov¬ present political controversy over
While Canada
Probably nothing pleases the average person more than to re¬ ernment Bonds, are very power¬ Aluminium, Ltd.
ful anti-inflationary forces," and has never gone in for trust-bait¬
ceive a call AFTER THEY HAVE BOUGHT something and have the
"nothing should be done to dis¬ ing in a big way, the rapid growth
salesman say, "I just dropped in to see if everything is O.K.—or, are
of the Aluminum "Trust" is pro¬
courage such savings." He specif¬
t there any questions you may have—and to let you know that I want ically listed the payment of life viding fuel for quite a political
bonfire.
to keep you posted and advised as long as you hold this investment." insurance
premiums,
mortgage
Under wartime pressure Alum¬
THAT'S THE KIND OF. SERVICE CALL THAT BUILDS BOTH payments and the payment of
debts as anti-inflationary forces. inium, Ltd. (has developed some
CONFIDENCE AND FRIENDSHIP. 55
.
■
He: stated that "t;he discussion at of the greatest hydro-electric and
There are some salesmen who, may argue that you cannot secure this time of
compulsory savings aluminum producing properties
active customer cooperation in the securities business.
Yet, there unquestionably would seriously in the world at Arvida and Shipsecurities dealer

There the Athabasca

Petroleums

Conservation Board tests.

New

the

In his letter,

ments.

becoming security conscious, there are many

opportunities for

I more

test

Sales

other

occasional social
customer list and
try and select those who would appreciate having you drop in once
in a whole. If you have ever had a customer say, "Hello there fellow,
you must have something to sell today, because the only time I ever
see you is when you've got another proposition to offer me," then you
can mark it down that you had better get busy and do something to
keep his good-will and his business. ''V;;; V
During the past years when public interest in security investment
was so dormant that most salesmen were doing all they could just
to cover expenses, it s true that customer "radiation" also fell to a
very low point.
But now that public interest is expanding and more
ana

is the report last week from Northern Alberta.

The significance attached specialize in Canadian securities.
publicity discussing compulsory to this result lies in the successful Mr.
Taylor is well known among
savings is harmful not only to the
completion of what promises to Canadian bond men and will have
sale of Bonds, but to the sale of
be the first producer in a new the best wishes of the
group for

to have

the people with whom they do business make an
"call.
The first thing to do then is to go over your

,

Reminiscent of the early development days in our great South West

written in reply to a

communication

are

to

gone

organi¬
plans for the Third War

zation

some

had

Morgenthau and

part of the salesman, before such calls are made if they are to be
effective. When there is no immediate business in prospect as a

ning and

letter,
Washington,

in

21

Importance of making calls on established customers to set aside a
more

System Teletype NY 1-920

By BRUCE WILLIAMS

*

Secretary

salesmen who appreciate

difficult for

Street, New York 5

Canadian Securities

digging deeply into funds not
to meet such
require¬

needed

4

::t"V *

Incorporated

"flexible

is

•«;/•

104% and interest

Wood, Gundy & Co.

present

voluntary method of selling War
Bonds

1

V.:.'Ki-y.

:

Price

Jersey, re¬
one
of the

that

declared

great

Railway Co.

V;5% Bonds, due December 1, 1954

Prudential Life Insurance Co. and

unusu¬

Available to
only one dealer in a state, but not in North and South Caro¬
lina*
First come—-"fhrst served.^ For details, write Box RR7,
The Financial Chronicle, 25 Spruce St., New York City .7*
can

$100,000

letter to Col. Frank¬

a

D'Olier,

cently

Trial

We offer, subject:

Secretary of the Treasury Mor¬
genthau, in
lin

requirements

411

•

Compulsory Savings

' ;

Desiring Successful Advertising Campaign
A scries

1

.

.

year

ago."

of plant exten¬

half what it was

clusively conferred

Pres. Cannot Commit U.S. To Post-War Intl. Ba®k

eral

government

the fed¬

upon

and

its

opinion

several

Witkosit GonstifsitionaS Mend., Says Dr. Spahr

The

I

would

departments."

have
great* respect,
willing ' to indicate to

be

ernments.

Constitution, in Article I,

Department

can

Section 8, paragraph 5, provides commit
the
United. States
by
(Continued from first page)
that "The Congress shall have the agreement, instead of
by treaty,
obligations relating to the set¬ to all proper subjects of negotia¬
power to coin money, regulate the
respecting the ultimate treaty of
tlement of the war."
tion between the governments of
value
thereof, and of foreign peace which will conclude the
In setting out certain
As expressed
provisions different nations.
and fix the standard of pending war.
; of
the Constitution, Prof. Spahr in the Constitution of the United coin,
weights and measures."
"MR. CONNALLY. The Senator
j observes that "the weight of evi- States the treaty-making power
This
jdence would seem to be on the is in terms unlimited, and sub¬ come provision would appear to from Michigan does me great
side of the view that the treaty- ject only to those restraints which
clearly within the interpre¬ honor by asking me that
ques¬
that
making power under the Consti¬ are found in
instrument tations and conclusions set forth tion.
Categorically, I should say,
in Corpus Juris.
tution is limited by
Since the Con¬ of
those re- against the action of the govern¬
course, that the State Depart¬
i straints contained in the Consti¬ ment or its
departments and those stitution: i definitely
reposes
in ment, and no one else other than
tution against the action of the arising from the nature of the Congress the power over our cur¬ the President of the
United States,
Government or its departments government itself and of that of rency, this appears sufficient to with ratification
by the Senate,
and that such power does not ex¬ the states.
prevent action by treaty which can bind the Government of
To what extent it is
the
far

what

authorize

to

as

thus

the Constitution forbids."

has

been

;

definitely

Congress the

to

this

power

acter

reposes

over

"It

seems

the

of

Senate,

the hands

in

body

of

if you will send

tend

to

power

comprehensible

impair

Michigan need not fear,
the Senator from Texas

far

is

concerned,

In the
11

620

(1870):

ate

of

is

not

In United States

260 Fed. 347

gov¬

power

not Con¬

are

over

of

our

(1919):

in

currency

the

international

an

body,
Senate, by

then the President and

treaty, could make effective the
will of Congress.
But it seems

This power [of

the United
States government to make trea¬
ties] extends to all subjects usual

For

The Pres¬

If Congress could consti¬
tutionally pass a law to put. this

Rockefeller,

v.

the

gress^

hands

advo¬

of

The Sen¬

Congress.

ident and the Senate

violation of that instrument. This

sistent with

ment,

of those plans effective.

one

the

time,

same

tions

of

one

At
condemna¬

some

both

or

of

is solely >oir

of

ground

stacles.

;

largely

clear that Congress could
legally do this by statute un¬

'the

opinion
of

one

expresses

645

as

amendment

to

Aside

1

an

nature

arid

follows in full:

Thus far in the discussions of
the Keynes and Treasury plans

for

post-war international bank

a

little attention has been, given to
the

question

of

whether, under
our Constitution, this country, by
treaty or ; executive agreement,
can

participate

without

in

such

amendment

a

Con¬

of

provides

all,

our

of

make

treaties,

thirds

of

The

the

Senate,

shall be made in Pursuance there¬

and

all

Treaties

made,

or

which shall be made, under Au¬
thority of the United States, shall
be
the
supreme
Law
of
the

Land.

63

.

..

Corpus Juris, page

829, sec.
rela¬
tive to the treaty-making power
.

under the Constitution:

say

-

1. V

"Scope
of
the
xne

of Power and

Treaties.

Generally

treatv-making
Xieaiy mdKing

Dower
puwei

Subjects

speaking
extends
exienus




side

of

the

restraints

the

and

authorize

what

tion forbids.

making

Nor

of

may,

J.,

p.

functions

point,

832,

be

course,

of
ex-

Corpus
10):

sec.

publican

majority

Senate

and

a

Re¬
the

unsuccessfully.

modified

annulled

or

abrogated only by those in whom such
authority is vested, and the courts may
not modify, alter, or amend, or in the ab¬
or

sence

of

violates
or
.

.

.

showing that

a

the

annul

federal

Where

the

in

In

the
the

treaty-making

a

treaty

abrogate
provision.

department of the

authorized

force,

void.

treaty provision

a

constitution,

disregard

or

to

annul

govern¬

voidable

a

it best that it shall continue
courts
United

may

not

States,

declare

although

is vested in the presi¬
dent with, the consent and
approval of the
Senate,
yet
as
an
act
of
Congress
is
equally the law of the land, and, in case
power

of

conflict,
will
control
a
prior
Congress may suspend or abrogate
either

directly

in respect to

that
bind
the
.

;

treaty,
or

ren-

indirectly."

.

unanimous

and

the

Senator

•

and

entered

ether

countries,

The

Executive

has; the un¬

right * to
negotiate.
Only the Congress can commit."
(Congressional Record, March 11,
1943, p. 1895.)
•-

1942,

3,

9588-9589:

pp.

VANDENBERG.

should like to ask the able chairof

the

committee

[Senator/

Connally] of Texas, is this—and,
of course, I do not want to divert
him from his immediate text: On
the general subject of the extent
to which the State Department is
entitled

:to

mitments

making

by

the

able

**On

chairman, for whose

joint

a

is

that

similar

found

prepared
Jacobs,

in

to

in

those

Memorandum

pamphlet

Attorneys

for

Corporation

building,

presented

Cincinnati,

form
the

by

above,

ernment

benefits

of

the

the

as

the

66

1933]; by

the

cited
tion

States

act

of

Congress

[Thomas

above

amendment

designated

for

of

national

re¬

might obtain from the Versailles
Treaty, and acquitting the United
States from all obligations under

authority

the treaty.

unable to assert that these agree¬

"My view
was

now

is

ments

Senator

for

for
If

his

were

part of the law under
claimed

that

he

m e n

t

s

Editor,

Commercial and Financial Chron¬

critically.
"MR.

com¬

expressed by
Spahr, in this article, or on
any related phases, of the subject

further,
I
amplify
discussion.
Com
question.
I am not referring under
this
matter
capriciously or should be addressed to

my

wa*

Dr.

should like somewhat to
to

was

ments on the views

with

moment

a

he

President

The CHRONICLE invites

frank

very

...

the

authorized to act.

I thank

he will bear

by virtue of all other
in me vested; I

Here

which

statement.
me

[etc.]."

just what it

"MR. VANDENBERG.
the

covery, and

then.

CONNALLY.

I

icle, 25 Spruce Street, New York.

under¬

stand.

"MR.

VANDENBERG.

greatly

I

interested in the

mental

principle

should like to
tent

we

and

by

know

what

to

the

same

the

made in

Proposed To
Repay War Contractors

I
ex¬

being committed by,

are

extent

am

funda¬

involved.

token

United

to

our

Senator Murray

what

Nations

Chairman

are

on

countries

in

my

mind

of

the

without

the

of

Senate,

the

and'

immediate
United

is

'

consent

is

a

ors

as

to—requires

V

Senator

action

by

Representatives

Senator.
as

his.

as

the

and

My opinion

is the

'

settlement

75 %

the
<

i

to

contractors

sub-contractors.

2. Advance

of

the

payment of at least

amount

contractor

or

certified by
sub-contractor.

3. Advance

payments
to
be
made within 30 days after certification,
4.

well

I thank

have spent millions for
they have not been reim¬

before

The

ment

own.

that

Mr. Murray said his bill Would
Incorporate these provisions:
1. Mandatory advance payments

loans'

the

means

bursed.

re¬ (

by the Senate.
"MR. VANDENBERG.

which

will

which

very

tariffs, because tariffs must be
enacted by. the Congress.
A tariff

House of

payment

Washington

,

If the Senator refers

is what the

Press

terminated

to

fers

.

After the war, he said, almost
$75,000,000,000 in contracts will be

[

by treaty with reference

—if that

final

ad¬
annearing
in
the
"Wall
Street Journal," further reported:

tariffs, for instance, of course
the
State
Department can not
us

and

vices

to

bind

reimbursement

from the Government.

Of course,

settlements'

early

Committee he said it is impossible
prime contractors to obtain

treaty of peace,
tlements after tlie war.:

broad term.

intro¬

for

and without a
to economic set¬

"MR. CONNALLY.

Con¬

will

without
adequate
legislative
States, machinery hundreds of contract¬

United

advice

after

soon

he

Small

announced

.

an

ernment

18 that

reconvenes

contractors

war'.'

question in

Senate

Committee,

of all funds spent on
production.
In a report submitted to the

of economic settlements

after the

(Dem., Mont.),

the

duce legislation to guarantee war

approaching the

problem
V "The

July

gress

will guide the governments of the
two

of

Business

can

name.

authority

agencies

to

for

procure¬

make

direct

provide loan guarantees
against terminated contracts.,
or

5.

The right of a contractor to
the Government if he does not
receive
the
minimum
amount
sue

"MR. CONNALLY.. I recognize,
as

the

Senator

must

recognize,

Frost

and

agreements which do not

(Union
Central
Life'
February 8, 1943).;

out the

carry

between

[resolution giving rise to London

Gov¬

United

that

States

and to

.

May 12, 1933], the other legisla¬

such

461),

United

.

agreements of July 20,

resolution

S.

on

.

understanding

by

treaty-making powers under
our
Constitution, a recent and useful an¬
alysis, using materials • and reaching con¬
clusions

cooperate with other govern¬

lution

same

the

these
proper

declaring the war at an end, and
seeking to claim in the joint reso¬

com¬

agreement, rather
by treaty, I am wondering

than
if

in

go

used

finding it

*..

virtue of the power in me vested

sponsored

'economic

What I

he

certain

ate

From the Congressional Record,

"MR.

agree¬

with

governments that adopted the res¬
olution hereinbefore referred to

.

Dec.

into

serving in the
House of Representatives. In 1920
and 1921, after the failure of the
treaty in the Senate, the Repub¬
lican majorities in both the House
of Representatives and the Sen¬

exchange of notes with a for¬
eign power can commit the Gov¬

fact.

supplemental

words: "Now

P were

whether the State Department by

constitutional

pretty

a

accurately as I can make it."
When the President,- in his sil-

arate

I

legislative bodies—as is

our

interna¬

our

statement,- but that is about

ments

from

not

do

questioned

the- ^r0ViM01?? 0f a treaty' Shoe

or

was

those in attendance—

obvious
.

that the action

commitments

these

Jt

the

that

sure

and in regard

That is

ver-purchase proclamation of Dec.
21, 1933, referred to the silver

which I opposed and which I re¬
sisted with such powers as I then

possessed, but

rights of

House, not by a agreements entered into in Lon¬
joint resolution, don July 20, ,1933; and to the sep¬

the

treaty, but by

by a
both

in

of

was

Van¬
Foreign

Senate

Foreign Relations," he

on

Juris

"Treaties

the

—and I may add
of the committee

destroy

or

of

said, "here registers its conviction

riian

this

to

(63 C.

as

Constitu¬

the words

"impair

constitutional

Relevant

such
far

so

or

the treaty-

can

in

power,

Corpus Juris,

says

that

the

mittee

con¬

government

does not extend

power

to

of

treaty deems

.5, has the following to

the

departments

ment

."

time—it

terminated

as

"

of

treaty-making
Constitution is

those

by

action

*

Laws of the United States which

the

its

to

the

the

on

the

provided
twopresent

and

one

tained in the Constitution against

Article 6, paragraph 2:

of:

be

under

limited

Senators

Constitution,

member

a

that

officially

broad

end—I do

an

was

at

the

"The Associated Press, describ¬
ing the new Canadian-American
Relations Committee, pointed out agreement, says:
'The agreement, embodied in
in substance that only the con¬
an
exchange of notes made public
stitutional body elected by the
people could make such agree¬ tonight by the State Department,
sets forth the principles which
ments valid.
"The Senate Com¬

it

weight of evidence would
to

power

the

"This

Sen ate

when

Senator
maintain

the

are

tional relations.

Senator

agreements,

denberg,

authorize

to

as

in that of

or

that

Constitution

the

the

to

Senator

rely upon, agreements which

the discussions of the lend-

lease

Government forbids, or
change in the character of the

seem

concur.
,■

far

so

that

States, or a cession of any
portion of the territory of the lat¬
ter, without its consent."

treaty-making powers:
2,
Section
2, para¬
graph .2: ■
"He [the President] shall have
the power, by and with the advice
consent

contended

In

It

States.

the

Article

and

be

government

to

1

the

agreements, Congress
position that the Pres¬

the

with the consent of Congress.

what the
a

follows with respect

as

think he

the

that

came

not

un¬

are

trade

took

itself

government
of

view

stitution.
First

not

extends

plan

our

of

that

would

•

the

of

of

agree¬

ident could exercise the power to
enter into these agreements only

against the action of
the government or of its depart¬
ments, and those arising from the

concluding
Spahr's paper

Prof.

cal

found in that

are

such

authority of law

translated into rati¬
treaties."
(Congressional

fied

ex¬

as

they

that

said

matter

Record, March. 11, 1943, p. 1895.)
In recent debates on the recipro¬

instrument

from " this
-

power,

restraints which

tion."

paragraph,

til

■

treaty

he

recently

of the

essence

ments "lack

pressed in the Constitution, is in
unlimited except by those

'

!

when

."

.

terms

Constitu-

our

.

Vandenberg

stated the

States, with

(1890):

"The

the probable necessity

on

the

al., 133
295; 33 L. Ed.

U. S. 267; 10 S. Cf.

advocacy of a plan is
dependent Upon its constitution¬
ality does hot necessarily depend
whether

of

In Geofroy v. Riggs et

to whether

upon

Senator

govern¬

relations

ob-

on

the point

on

the

the federal Constitution.

these

Constitutional

Clarity

systein of

our

with

states and the United

plans suggest that the condemna¬
tion

advise

Michigan

World War

quite
not

example,
to treaties, to all within the in¬ der the Constitution.
few; of those who support the
All these observations apply to
Keynes or Treasury proposals are ternational domain, to all of in¬
making clear whether their ad- ternational concern and negotia¬ treaties.** The matter; of Execu¬
vocacy stands in the event that it tion, but limited, nevertheless, to tive
agreements
raises
another
should prove necessary to amend subjects and treaties not incon¬ but
relatively simple1 question.
the Constitution in order to make

•

ly places in Congress.

be held valid if it be in

or

consent

which the Constitution specifical¬

hardly be said that a
treaty cannot change the Consti¬
tution

the

Senate, cannot place in the hands
of an international body a
power

Cherokee Tobacco Case,

Wall.

with

treaty,

"It need

condemning current in¬
banking
- proposals,
'such as the Keynes or Treasury
plans, are dealing with this Con¬

.

and

should

the
not

fication: ;of
treatieg
to the conduct of

to

partments. ..." (Boldface mine.)

or

issue,

states

"I

that
will

the Senate in regard to the rati¬

the

war.

from

Texas

he thinks

ments

de¬

several

rea-v

ternational

stitutional

powers,

reserved

are

the

to

of

re¬

of

as

from

what

Maine will recall that at that time

its

ernment."

cating

others

one

obligations

settlement

is

ator from
so

he

federal

the

upoti

and

Spahr says:
are

delegated

all

the

to

the

line

shadowy; but .the Sen¬

It
seems
reasonably
clear,
therefore, that the President, by

conferred

our

who

government is

and

that

by

principle that

States

to

The

somewhat

am

,

those

supported

by the people
themselves.

destroy the

or

damental principles

of

is

central

and

and fun¬

"Few

view

specific

to

results from the nature

:

United

lating

Canada,' and

things of that kind.

to

government

which the Constitu¬
specifically places in Con¬
.

.

Con¬

certain quan¬

us

tities of wheat from

ly

a power

tion

treaty-making

gress.";
In concluding his paper Prof.

/

the

executive

agreement which
provides, for
instance, 'We will send our war¬
ships over to the Mediterranean

constitutional functions exclusive¬

cannot place
international

an

the

on

sufficiently

or

sonably clear, therefore, that the
President, by treaty, with the con¬
cent

This

.

cur

monetary system,

It is not necessary that; the Con¬
stitution specifically forbid such
action- by treaty."
Prof. Spahr
further comments:

.

include all acts which might seek

responsibilities under the Constiour

.

basic constitutional

is

from Congress its

remove

government

tion

sufficient

appears

the

of

and, in general, that the limita¬

our

prevent action by treaty which

would

tution for

.

Congress its

under

our

to

paper

currency,

'

responsibilities
stitution for

Constitution

the Constitution

in

.

from

remove

monetary system.
the section of ever been declared by the courts It is not necessary that the Con¬
governing the to be void.* It would seem clear, stitution specifically - forbid such
power
of
Congress
"to • coin however, that the treaty power action by treaty. Specific assign¬
money, regulate the value there- does not extend so far as to au¬ ment of duty und responsibility
what
the
of, and of foreign coin, etc.", as thorize
Constitution under the Constitution would ap¬
to which Prof. Spahr says: "Since
forbids, or a change in the char¬ pear to prohibit any other action.

Spahr's

the

;

would

consider¬

ably discussed without being def¬
initely defined, no treaty having

Reference is also made in Prof.

•

limited

such

the executive agreement covers.
There is the border line,
between
a formab
treaty and an executive

'

so

of

agreements, the governments do
voluntarily, mutually, the things

to

tend

participating unless, in

pursuance

the Senate to what extent he be¬
lieves the State

there

are

certain

executive

the dignity of treaties and

impose

obligations

on

rise to

within stipulated period.
6. The establishment of uniform
contract terminatiori policies
by
.

do not the chairman of
the gov¬ tion Board.

the War Produc¬

•Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

158

vision of the Hitlerites.

ary

The Stock Market Outlook

would be

and Investment

This

fitting climax for
blitzkreig beginning.
It seems impracticable to
tempt visualizing at this time
final phase of the war in

Policy

(Continued from first page)

a

Pacific.

will

It

be

at¬
the
the

influenced

with

stocks

greatly by developments yet un¬

Germany has largely, if not

recommend

common

confidence.

Common stocks have

almost

determinable.

the

fensive

policy

recovered

how

from

levels; the risks

are

bargain

much greater,
much
is on

the appreciation possibilities
less and the average yield

the

low

"must

side.

rest

principally

•outlook for the

prospects,
; background

decisions

Current

the

upon

and post-war

war

judged
against
the
of a prudent policy

under current conditions.
Outlook For the War

We,have

right

to assume
accurate¬
ly when the war will end.
We
actually have available few of the
we

'facts.

can

no

judge

very

Nevertheless,
there
are
•enough indications to justify in¬
vesting as though the war with
Germany will have terminated
,

initial

the

is

of

after

and

Russia

weeks

the

the

be

almost

at

high

a

Unless

cost.

fensive succeeds

and each

—r

been almost

number of offensives but
without much success, and it had
become
quite evident that she

•pleted

could

a

lines.

the Allied

break

not

exerted her max¬
offensive
strength, while

Germany
imum

had

the Allies had

gained in relative

strength.
The

last

major German of¬
fensive started Monday, July 15th.
It was apparent by the third day
that the offensive could not make

A day later, the Allies

progress.

with

counter-attacked
It

success.

immediate

quickly believed

was

that the enemy could not attempt
another
there

offensive

developed

confidence

of

in

and

year,

strong feeling
the

outcome.

in¬

late July,
opinion held that to

-Nevertheless,
formed

that

a

pect "that

in

ex¬

the invader will, or can,

be driven out of France and

Bel¬

during 1918 is the highest
of improbabilities."
The German military tactics had
gium

•

•

been

'

conduct

to

offensives

after

.long waits between blows, during
which they would reorganize and

striking
power.
The Allies were now in
position to attack continuously.
Germany was unable to replace
sledge-hammer

prepare

her casualties;

she could not re-1

place her material as fast as it
was being destroyed.
In contrast,
the Allies were more than able

replace the loss of men and
material.
By late August, it had
become apparent that the views
toward the ending of the war held
only a few short weeks earlier
were completely wrong and that
termination., was
approa chin g
to

in

one

able to

pean

break

cannot
United Nations line.
enemy

contrast to

production
lotted

of

the

to

seems

reason¬

period will

com¬

with the end of the Euro¬

mence

the

it

that the problems

assume

the

can

month than she

one

year,

of the post-war

it

War.
Post-War Outlook

this

is the

posi¬

There

Their

war materials
European War

that of the

are many reasons

to

sup¬

port the opinion that in the period

al¬

following the

immediate-endingof-the-war-readjustment,
condi¬

ex¬

enemy.

could

tions

With the opening of

the Mediter¬
and the apparent victory

able

become

more

favor¬

for

high stock prices than
ranean
of the North Atlantic, they are they were in 1936 and early 1937.
The rise in stock prices since the
able to move
the
tremendous
portance. However, it would be
quantities of supplies and num¬
by developments of long-term im¬
bers; of-troops.Their stores have
portance.
However, it would be
been built up. They are now prob¬
unwise to fix our vision upon the
ably able to continuously attack,
possible green pastures in the dis¬
and while waging attack on one
tance and then overlook the can¬
or more European fronts, current¬
yon
in between until we were
ly replace all losses and continue
tumbling over the side. With the
to build up their fighting power.
defeat of Germany, violent revo¬
It is likely that the enemy cannot
lutions may spread over Europe.
replace fully her losses. Her abso¬
Harmonizing the objectives and
lute fighting power is almost cer¬
desires of Russia on the one hand,
tainly below a year ago. The wear
and principally
those of Great
and tare of almost four years of
Britain and the United States on
war
and Allied bombing of pro¬
the other, may be difficult indeed.
duction facilities and communica¬
tions

will

prove

distance

At home, we will have our prob¬
lems. Between late 1937 and early

to have been of
inabil¬

decisive importance in the

between

the

ship to

After

almost

service them.
four

A superior investment

perform¬

of

years

v

longer-term outlook,
possibility during the

and

period of favorable

If

have completed this pro¬

we

portion
trend

that
be

of

in

important

an

the

market,

investment
in

a

it is

cautious

more

the

it

position

in

were

move

uation

possibly

compared

with

1937 and 1938.

of

nomic structure deteriorated.

tain

Ex¬

a

It is

practically

that the stocks of

a

that

the companies will
reporting
satisfactory
earnings, even though the over¬
all output of industry is declin¬
ing.
Balancing the possible in¬
fluences, as we can at this time,
it would
our

seem

in

reasonable to have

stocks

common

investments

almost

entirely
companies that are strong fi¬
nancially and are surest to do
well in a period of deferred de¬
mand, the long-term risk at cur¬
rent prices would seem small.
of victories

news

and

the

growing hopes that this dreadful
struggle may soon come to an
end, creates an atmosphere of
cheerfulness
less

and

stocks

optimism.

have

Un¬

advanced

to

where the
been

ending of the war has
over-discounted, it would be

quite natural for the stock market
to

advance.

the

In view

of

this, and

possibility that this movement
have further time and dis¬

may

tance to go, it would seem reason¬
able to invest a moderate addi¬

would

vance

would

be

lessened.

This

be

'

■

'

'

'

than 50-50.

more

We should
ual

review the

securities

in

each

counts and make the

in

necessary

order

individ¬

of

our

ac¬

adjustments
that

in¬

our

dividual

holdings will be in keep¬
ing with the general policy.

Byrnes Sees Hope For i
More Civilian Goods

in

The

not

the

on

basis of this approach alone. With
our

alone,

additional 10%.

account invest about

average

40%

an

does

we appear to be
in, the pos¬
sibilities of the trend of the mar¬
ket
being up should be much

be

soon

to

up

market

to

could

basis

this

on

though

position
funds

some

that

cer¬

number

of companies can be held with as¬
surance

strong

as

justify the
additional investment
now, in our
judgment.
To justify investing
additional funds in
stocks, con¬
sidering the phase of the market

few industries, like the
mines,
everything
moved

gold

invested

The

During that period
readjustment, the whole eco¬

a

forward,

be

be

that

some¬

market,

judged by itself, looked

clear

should

than justified heretofore. The sit¬
cannot

war news

the market might advance
what further. If the stock

upward

accounts

What

•

the

market-low and the war-markets

high.

especially true if the
ance is not predicated necessarily
market had not had a previous
war, she must have used up great upon our ability
to judge ac¬
intermediate readjustment.
Also,
amounts of her limited resources.
curately the pattern of business
if by then the market has risen
This curtails her ability to main¬ or the movement of the
rapidly.
markets,
to 150-60 Dow Jones industrial
:
Germany's recognition of the tain sustained battle, and neces¬ but in being able to do about the
average, we may wish to reduce
weakened situation was conceded sitates the choosing of when to right thing at about the
right
Such time.
In early 1937, when cor¬
by a sudden change in her stated exert her maximum effort.
war
aims.
Previously, she was need for caution can be fatal.
porate earnings were near their
3. She is rapidly losing in rela¬
fighting to destroy her enemies.
peak, and when investors were
fighting
strength, as
dis¬ still looking ahead, the Dow Jones
Now, her leaders proclaimed that tive
their aim was defense, while that cussed previously.
industrial average sold at about
a
4. She is fighting wars on two seventeen times that
of
the
enemies
was
one
of
year's earn¬
sides, either of which could prob¬ ings.
annihilation.
.•
The high times earnings
withstand all the fighting ratio for 1936 was about 18
At
This review of the culminating ably
power Germany has left, and the current prices, the Dow Jones in¬
phase of World War I helps us to
save
growing forces in the West alone dustrial average is at about 15 %
interpret the phase of World War
could in time defeat her.
times earnings.
If the average
II that we are now in. As Frank¬
5. Most of Germany's early vic¬ were to advance to
160, it would
lin D. Roosevelt, then Assistant
tories were facilitated by political be
at 17 times our estimate of
Secretary of the Navy, said while
dissension,, that she helped to earnings. In view of the prospect
on a trip to England in August
The United that earnings have reached their
1918: "As everybody now knows, create, and sabotage.
Nations are now able to turn the
•;w;:
_■;
f
\
peak for the war period, and that
the. submarine has ceased to be a'
war of propaganda and dissension
we. are faced
after the war with
menace, and it has dropped down
/ into the category of accidents so: against Germany and her satel¬ some difficult readjustments, it
lites. '
would seem reasonable to assume
far as' marine transportation of
64 Germany is sitting on an ex¬ that the market would not exceed
\the Allies is. concerned."
So to¬
plosive structure of subjugated this level.- The war low in the
day, it is publicly announced that
peoples that at the given moment Spring of 1942 was about 95. Since
we
have largely .'eliminated the
will rise up and help immeasurathen, the : market has adyanced
destructive- power .1 of - -the
sub-;
marine.
While there have been ably in destroying the enemy. The about three-quarters of the dis¬
will
hardly
be tance toward this possible upside
times when we have had to al-' paratroopers
limit; (the word "possible" is used
low for the loss of as much as necessary to disrupt the rear.
2.

;

third approach to be
The 40% and the ad¬

ditional 10% are approved on the
basis of current prices in relation¬

war-

1938, the Federal Reserve Board tional amount in common stocks
ity of the; enemyto replace losses. index of industrial
production de¬ on the basis of this
prospect alone.
Again,* as in the Summer of 1918,
clined from 12& to<!8jQ, As we re¬ Ah additional 10% /Of the ac¬
the enemy is changing her1 an¬
member, it waspupsetting.
As a counts would seem t justifiable.
nounced
war
aims.
Germany
minimum,^ thatr: record will be This would give us a total posi¬
started out to destroy her enemies,
shattered by the declining phase
tion of about 50%, which is our
but now she is fighting to defend
of business following the end of
current policy.
It does not pay
herself, while her leaders pro¬ the
European War. This will bring to have too fixed ideas about
claim to their subjects that the
in its wake many difficulties.
It when we will make
adjustments
war aim of the United Nations is
would seem unreasonable to go
in the future.
As a logical ap¬
one
of annihilation.
To so alter
into such a period of readjustment
proach, however, it would seem
her aims is to admit defeat of her
in
other than a cautious invest¬
wise to plan on selling the second
cause.
ment position.
If in the midst of unit of
10%, regardless of whether
In
many
ways,
it looks as the
period of readjustment, the
prices have advanced above these
though it will take a long time to favorable
longer-term possibili¬ levels, once there
develops def¬
finish the fight.
But, fundament¬
ties appear dominant, we could
inite signs of the Axis lines giving
ally, Germany is in a very vul¬ then
adjust our accounts accord¬ way on both the Eastern and the
nerable position:
ingly and be on solid ground.
Western fronts.
This could mean
1. Her battle lines are greatly
extended. This spreads her forces A Prudent Policy Under Current that the time element is very short
and possibilities of a further ad¬
Conditions
widely and tremendous economic
effort is needed to

'
a

considered.

a

downward.

more

in

can

day

—

sible

cept for

prob¬
ably be said with .assurance that

lessens its chances

ceeds greatly

had

con¬

thesecurityof .the Em-r

price.
There is

that, looking at the
general way, the
market has probably completed
at least three-quarters of the pos¬
in

duce

of¬

marine. menace

Germany had■ com-!

we

a

We conclude

situation

will

doubt

no

When

it

the longer-term 40% position. The
best stock becomes speculative at

have many times more war planes
than Japan, and the ability to pro¬

two

the

tion of the United Nations.

"eliminated.

she

that

avalanche.

an

If

pire of Japan is based upon the
Sea, and that the combined navies

most

new

situation today
not unlike that of the Spring and
early Summer of 1918.
The sub¬
a

assumed

sider that

'

Germany, is in

be

Japan?

join the fight, it would

offensive, the
report suggests little progress and

In

before the end of 1943.

impact

could

What will Russia's

toward

be

powerful. They were overwhelm¬
ing in 1940; almost so in 1941 and of Great Britain and the United
still mighty strong in 1942.
To¬ States alone will be more than
day, Germany is only effectively five times hers; that Great Britain
attacking the United Nations line and the United States alone will
in

*

that

completely, spent her of¬
strength.
In this war, as
in the previous one, Germany's
military tactics have been to pre¬
pare for and make sledge-hammer
blows.
In this type of operation,

ter, it would have already been in
an upward
phase for about threequarters of the period of time.

the

'

that

413

.

••

James

F.
Byrnes, Director of
Mobilization, expressed the

War

hope

on July 21 that more sup¬
plies for civilian use may be made

available.
In disclosing at his
press con¬
ference that his office is conduct¬

ing

a

survey

of

production

war

and

procurement programs, Mr.
Byrnes stated that the primary
objective of the study was to as¬
the

sure

best

manpower
war

the

of

use

available

and materials for the

effort.
He explained that in
early stages of the war pro¬

officials
may
have
placed large contracts which now
curement

are

not

reauired

in

such

great

quantity and that the changes in
these programs may release some
materials for

Reference

civilians."

was

also made by Mr.

Byrnes at his press conference

July 21 to the
nomic

new

Warfare,

President):

on

Office of Eco¬

(created by the

headed

by

Leo

T.

Crowley "must consult the State
Department in every field to de¬
termine what is the

foreign policy

of the United States."
The

new

Office directed by Mr.

Crowley combines the former
tivities

of

Vice

President

ao

Wal¬

lace's Board of Economic Warfare
and

Secretary

of

Commerce

Jones's foreign purchasetions.
was

The

noted

corpora-/

creation of the OEW

in

our

issue

of July

22, page 332.

treat...

•

.

,

I'll

v

it

for

•.

special

•

■>

• •

occasions!

SCHENLEY
ROYAL RESERVE

one-third to one-half of our

ments,
and

ship¬

today we have the ships
losses are relatively in¬

our

The
submarines
may return again, but surely their
'sting is gone.
consequential.

It

appears

reasonable




to

say

Once
mence

the

the
to

sides

punctured

Onemy

lines

com¬

break, it, is likely that
will

crush

balloon.

in

pean

see

sub¬

been

that the "Euro¬

Fortress" is but

an

imagin¬

have

cannot

than

jugated interior will explode and
the world will

place of "probable" because we

a

like

The

in

that
a

little

since the

the

upward

%

over

war

market

figure.)

It has

fourteen months

low

were

move

confidence

more

the

in

was

to

made.

If

complete its

by the coming Win¬

60% grain neutral spirits.

Blended whiskey, 86 proof. Schenley Distillers Corporation, N.Y.C.

THE COMMERCIAL

414

& FINANCIAL CHRONICLE

kind to this type

Minnesota

Savings-Loan Ass'ns
Have Maintained Steady Growth
Endowed

...

Executive

Pres. Minnesota

Vice

Loan League, Minneapolis,

&

boasts

and

with

enormously

Minnesota

resources,

agriculture, mining and lumbering. It claims soma
10,000 lakes and prides itself in being the vacation land of the nation.
The geographical center of North America lies within its boundaries.
largest iron mines in the country are located here as well as

The

largest state park forest area.
Amid this rich background
wealth

and

from all the countries
globe, a peace loving people

have

who

re¬

and

sive

helped

to

build and

this

ate

cre¬

great

nation
th i

and

state.

and

dustry

and

capital-

domi¬

and develop in this

has

years,

taken

its

place

others to own their own

ac¬

Vernon S. Welch

quired wealth
and

became

Savings and
in the
community as a "commodity ser¬
vice" organization serving and en¬
couraging those who wished to
provide a savings for their future
needs, and making it possible for
Loan

ed, and as the
farmers,
la¬

have

homes

the

of

Out

in¬

pr o gress-

ists

own

environment.

have

borers

founded this newly created
wealth, the desire for the security
and possession of their own lands
ple

prosper, grow

As bus¬

iness

homes at

moderate cost—a truly

American

a

For over 50 years, the
statutes of the state of Minnesota
principle.

prosper¬

ity, banking and financial institu-

permitted the incorporation
of savings and loan associations.
The Legislature has always been
have

FIRST FEDERAL

FINANCIAL

of

First

MINN.

30,

1943

this

in

Home

ST. PAUL

Federal

Home

century.
associations

has

operated

rowers

permitted

are

Loan

of

ciation,
dent.

operating

throughout

chartered,

charter.

state

They represent
total assets in excess of $112,000,a

000.

of

Vice-President,
Dahlon,
League.
ated

distributed

Furniture and Office Equip¬

(Continued

7,215.95

tutions

and

money

face

on

tate

lend

tate

lending

that

estate

they

serious and heretofore

a

foreseen

Cities

individuals

real

threat

to

their

un¬

real

es¬

mortgage investments if they
the

on

which

security of real

es¬

has theretofore been

4,560.50
Government

Bonds

LIABILITIES
and

Loans

in

Process--

Reserves

and

Profits

Other

Trusts

93,479.87

—

and

Individuals

Earn

Write for further Information:

2,916.03

»

AXEL

A.

OLSON,

Dividends

Exec.-Secretary

$4,837,869.86

When

INSURED

Regular

on

Placed

with

Basis
Us.

Time Is Kind to the Thrifty
Accounts
;

,

We Invite Your Inquiry

TWIN CITY FEDERAL SAVINGS & LOAN ASSOCIATION
Eighth and Marquette

JUNE

30,

1943

JUNE

AND

30,

U.

S.

Home

Furniture
Real

and

Estate

Cash

Loan

Government

Bank

Fixtures--

35,000.00

First Federal

34,100.00

643,851.79

OF
as

$22,393,892.25

—

$16,540,157.95

First

Mortgage

Loans

Loans

June 30, 1943

Share

$18,739,308.61

Accounts

Federal

Home

Bank

Undivided

Other

,

$13,798,799.79

2,120,700.00

"

Loan

Reserves

Mortgage

June 30,1942

1,904,050.00

500,000.00

Estate

None

440,105.62
Profits

Loans

Property Sold
Real

Accounts

Share

from

369,107.09

U.

S.

and

-

—

__

June 30,

____

Bonds

Contract,
.

.

103,352.76
*6,346.08

regula¬
by which the

many

Government determines the prop¬
erty upon which estate taxes shall
be

paid."

Mr. Mullenix said the Associa¬

studying

was

further
able

with

the

offer

to

suggestions

the

of

being

constructive

to how the matter

as

solution,
to

seem

problem

hope

some

might be corrected.

The most ob¬

he

added,

would

be to amend present law

to require

filing of Federal estate

liens

be.

He

his

as
any other lien must
added that, based upon

could not be done.
Because of
the special conditions and
regula¬
tions under which they are

made,

the

hazard

does

not

affect mort¬

gage insurance on FHA loans, it
has been established, Mr. Mullenix

added..

New

Savings And Loan
Group Organized In NY
The

Insured

new

Savings

and

Loan Council of New York State
held its organization meeting at
the
Hotel
Commodore
in
New
York City on July 8. Represented
the meeting were 43 insured

Loan

8,423.90

of

total

a

of

108

610,
of

almost 56%

or

all

insured

of the

savings

assets

and

loan

associations in the State.
E.

Clinton

Wolcott, of Roches¬
ter, Chairman of the Organizing
Committee, presided at the ses¬
sions.
John

H.

Fahey,

Commissioner

Home

Loan

Bank

Administration, spoke at the din¬

:

"Opportunities

on

Obligations

Confronting In-

(Continued from page 415)

.

7,152.18

$16,540,157.95

in

$3,371,666.92

Process

Hand and in Banks

7,819.17

Cash
Other

on

Assets

Total

Assets

69th

year

Savings

for

of

policy

now

service

Member

in its

to

the

Federal

3,830.01

Liabilities

Reserve

402,912.00
216,580.22

fit the needs

institution,

Northwest.
Loans

Bank

42,800.00

to

of each customer is the

of this

Savings & Investment Share

Other

Stock

1943 Dividend at the Rate of 3%




so

"tailor-made"

7,925.89

$360,112.00

Federal Home

235,396.26
225,652.63

$22,393,892.25

PAUL

5,850.00
on

Owned

Equipment, less depreciation

Liabilities

are

methods

30, 1943

Accounts

War

285,333.30

Process

Total

and

CONDITION

Investments and Securities,

300,020.82

in

there

tions

ner-meeting

LIABILITIES and RESERVES
$2,882,854.31

Passbooks

on

OF

SAINT

of June

ASSETS

Investment

that

Savings and Loan Association

36,951.08

880,101.73

—

STATEMENT

160,800.00

Certificates

Savings

The matter

greatly complicated by the fact

Minneapolis, Minn.

327,464.57

LIABILITIES

Advances

is

64 South Fourth St.

..":

Minnesota

15,566.65

160,800.00

None

Total

walk

may

SAVINGS and LOAN

$15,321,423.86

4,251,965.94

Owned

$5,000

Peoples Federal

June 30, 1942

7,950.46

Stock

Hand and in Banks

on

it

ASSOCIATION

$17,058,074.12

Bonds

to

Investment Of

St. Paul

Mortgage Loans and Contracts
Secured by Pledge of Accounts.

Federal

unpaid estate taxes.

and

1942

June 30, 1943

Loans

Up

TRUST FUNDS

ASSETS

First

Insured

On

Minneapolis, Minn.

Comparative Financial Statement
OF

interpretation,

of the Federal
All

AS

con¬

Thus

lender, under

a

the State.
These associations
have assets upwards of $184,753,-

Surplus Funds of Corporations,

Savings and Loan Association

16,207.93

Undivided

—

Liabilities

tax

years.

that

into a
trap because he cannot
foresee that the Government may,
in effect, have a secret lien for

<

$4,725,266.03

;

the

in

Dividends Assured

FEDERAL

Investment

Accounts

Accounts Insured

BEN FRANKLIN

$4,837,869.86

Share

estate

ten

associations out

102,198.47

Savings

to

at

900,000.00

Cash

never

present understanding of the mat¬
ter, he could not see why this

Mortgage Bankers Asso¬
on July 25 warned Insti¬

ciation

416)

on page

League is affili¬

with the United States Sav¬

The

and

semi-annual

a

superior

Federal

seem

vious

Warned Against Estate
Tax Lien Ruling

On June 30 of this year the

alone

Past

Real Estate Lenders

mem¬

Twin

are

also members.

are

Corporation In
accounts of its
institutions are insured

the

is-

for

new

tion

ings and Loan League, of which
the majority of the state members

A

share

in

Raymond Hughes

and Stanton H
President
of
the

The Minnesota

Insurance

the

E.

Vernon Stafford Welch, Executive

apply as the occas¬
A great many other

Federal Savings

the

Building

na, Secretary.
Other members of the board

associations

become

E.

Albert

and Loan Association of Owaton-

of these associations is state char¬

have

this

sociation, a new member on the
board, Second Vice-President; W.
R.
Mahood,
Northern
Federal
Savings and Loan Association of
^St. Paul, Treasurer; Miss Louise
A.. Barker, Steele County Building

Paul, three of the largest asso¬
exist, each
with assets over $20,000,000.
One

associations

749.05

ment

Lea

for

would

and Loan As¬

ciations in the country

the

has

not recorded;

lien

Vice-

Chase,

St.

of

lien

tinues

Sav¬

Homer

alone, comprising Minneapolis and

many

the

need not be

president;

have
prospered in
nearly every county of the state,
in both large and smaller com¬
munities.
In the Twin City area

the others Federal.

though

recorded.

taxes

was

Home

n,

First

They

000.

ST. PAUL

MINNESOTA

Other Resources

the

26 are federally
and 30 operate under

be

Spring Valley,

acceptance of

Of these,

estate

can

against a mortgagee or
purchaser
under
foreclosure

tate

ings and Loan

against loss in the amount of $5,-

5,460.08

,

Re¬

to

tions
state.

taxes

Association of

respon¬

type of financial enterprise.
Today there are some 76 associa¬

real

on

and, in fact, it
recorded, as the Su¬
preme Court decision indicated,"
said Charles A. Mullenix, Cleve¬
land, Association President. "The

s o

sibilities and duties imposed upon
the management that accounts for

wide

lien

estate

enforced

rights of a mortgage holder—even
though
the
Government's
lien

are:

Federal

a

"Stripped of legal phraseology,
a
Government
lien
against
a
property for unpaid Federal es¬

Other

officers

Government's
for, unpaid

even

be¬

»

'Under

-

ruling
of the
Supreme
Court, it is held that the Federal

been

presi¬

came

in

this

preceding

years

recent

a

Building and
Savings Asso¬

aspect and the incumbent

member

Bank

'

;

Mankato

very

voice

a

in¬

were

E. Raymond

positive. They
mutual institu¬

as

of the

E. C. Duncan-

which

Association

45,110.41

Owned

States

been

members

the management of their associa¬
tions.
It is probably this mutual

bers

Savings and Loan

6,300.00

Contracts

Mortgages Subject
demption

United

growth

meeting

Hughes, of the

slow and yet very

associations

37,500.00

Estate

the

Loan

Stock
Real

of

these

board

ducted.

accepted, prior to the turn

ion warrants.

FEDERAL

Association

Purchase

and

effort.

was

annual

Savings
and
Loan
League, the newly elected officers

Legislature,

The

the

Minnesota

Savings and Loan has progress¬
ed a long way since the first char¬

stitution may

,

Loans
$3,728,775.40
by Savings

Secured

was

system, where is provided a home
loan credit, mortgage reservoir of
funds to which each member in¬

STATEMENT

June

Mortgage

At

throughout the state are members
the Federal Home Loan Bank

RESOURCES
Loans

present

ter

the, ten

the making of the loan.

of

Marquette Ave.

MINNEAPOLIS,

as

within

original

Code

the

in this

part

a

great

OF MINNEAPOLIS

•

of

owned, either wholly or in part,
by an individual who has died

League

operation

the

Loan

and

member

a

tered and

Savings and Loan Assn.
809

is

the

great

s

Building

of

to the

1939

for their future.
This the ultra-conservative methods of
progressive and forward-looking
operation.
The Boards of Direc¬
spirit has accounted for the estab¬
tors! are made up of outstanding
lishment of state owned, perman¬
citizens in their respective com¬
ent trust funds of nearly 124 mil¬
munities. The stability and integ¬
lion dollars.
It is only natural
rity of these associations is evi¬
that
Savings and Loan should dence of

has

which

peo¬

provide

pio¬

spirit

neering

As the

nant; and likewise, the desire to

progres¬

in

Savs.

tions and all investors and all bor¬

tions have prospered.

and

that

tained

and

act

en¬

amendments

methods

have been offered

are

people

a

of the

the

of<^

settled

have

beauty

improving

had

Minnesota

natural

rich

Savings

land of

a

of business

Various

adopted. Your correspondent, who

By VERNON STAFFORD WELCH
General Counsel

terprise.

Thursday, July 29, 1943

Dividends,.

&

Loan

Insurance

Corp.
Established 1874

46,986.90

Payable July 1, 1943

Surplus and Reserves

:—

195,787.49

482.69

HennepinFederal
SAVINGS St LOAN ASSOCIATION

„^$3,626,197.21

Total

Liabilities__$3,626,197.21

704

MARQUETTE

MINNEAPOLIS

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

(Continued from page 414)

A,:

sured

Savings And Loan Ass'ns Have High
Earning Rates, Low Operating Cost

Savings and Loan Associa¬

tions."

<

'■■y Graph charts and figures as ex¬
plained
by - John
E.
Farwell,
of the

President

By

Federal

Geneva

Loan

Putting
tution

87 insured

•

-

mutual

All

low

keeping these

of

cost

the

to

had

age-sized
ciation

savings and loan

($1,000,000)

transactions

a

on

asso¬

necessitates

only 300

to

400

loan accounts.

basis
invest¬

than

of

amortized
mortgage
averaging somewhere be¬
tween $2,400 and $3,000.
Thus the
entire loan portfolio of an aver¬

divi¬

on

consist

loans,

why

stay

institutions

monthly

assets

higher

v':

} Moving into the sphere of their

Further
study of the charts
showed' the estimated proportion

ments of

of mortgage

parable

inherently high earning power as
institutions, we find that savings

ity.

and loan association have the ad¬

loans made by sav¬

ings and loan associations in the
of

1942

New

address

an

made

sel

former

and

their

of the

League, it was interesting to note
a public opinion poll taken

has

will

by him that only 55% of the pub¬
lic knew or had ever heard of

probably

savings and loan associations, and

the
the

remark¬
able to know that 56% did not
know that there was any differ¬
between

ence

and

in

wake

of

W.

W.

the income of the associations in
1941.
Concentration on the real

McAllister

continued

estate loan field

operating

average

far

as

of

expenses

as

savings and loan associa¬

mated

are con¬

The

is

for

ure

Taylor, President of
the First Federal Savings & Loan
Association of New York, who
was
just appointed Chairman of
the Post-War Planning Committee
of the United States Savings and

the

the Federal Home Loan Bank Ad¬

other

ministration in its survey of oper¬

which

ating ratios of nearly 4,000 mem¬

do

ber

of

the

Federal

A

more

substantial

savings and

the

nounced

was

•

loan)

Leon
of the
and Loan
Association; Arthur Knapp, Pres¬
ident
of
Nassau
Savings
and
Loan Association; Selden W. Os-

Chairman;
President

First

Federal

Loan

Federal
;:

of

is

It

.s.

active

accounts,

Legal for Trust Fund*

a

in most States

Assets Over

$3,000,000

of

record

addition

31.

added

Financial

outgrowth of an in¬
conducted
by
the
House Naval Affairs Committee,
of the agents,
in excess of $25,000 to Govern¬
ment scrutiny and renegotiation if
found to be too high.
'
subjects

earnings

.

.

_

,

bill passed the House on
April 20 and the Senate on July 7.
>".

The

It is

a

substitute for

duced last year

a

bill intro¬

which would have

prohibited the payment of any
contingent fees for services in
procuring Government contracts.




t i

a

o

n

ference that the WMC is

;

on" the

Vice-

and

sent

.

subject now,

as

"working
it

fore, and that "if the need arises,

Joseph

the

G.

Standart, De¬
troit
Surety
Savings
and

machinery will be ready."

declined to

say

ministration

Loan Associa¬

draft

bill

tion;

hints

that

Second

Vice

Presi¬

-

dent,

will

Don W.

Seaton,

D

troit

be

after

would

but

a

labor

have

been

back

there

renewed

consideration

given to such legislation

Northern

C.

Thomas

Mason

Jh i g a n
Building and Loan Association of
Hancock; Secretary-Treasurer and
M i

Executive
Manager,
Grant
H.
Longenecker, Lansing, Mich.; Dilectors, W. R. Crissey, Midland
Federal Savings and Loan Asso¬

BARBED-WIRE
Is Gone

,

ciation; Walter Gehrke, First Fed¬
eral Savings and Loan Association

t

of

Detroit; Wendell C. Gates, In¬
Savings and Loan Asso¬
Creek; and James
I.
VanKeuren, Capitol Savings
and Loan Company,
Lansing.

have

dustrial

ciation of Battle

ich
i

Leaves Lend-Lease Post
John

"Star

ts

Stettinius, Jr., the Lend-

of the

Journal

on

cato

Tribune,"

it

July 21.

STANDARD

Mr. Cowles, who had been with
Lend-Lease Jsince

January, went

to North Africa and

Spring

on

mission

for

that

Mr.

in

has

his

opinion
an

735

survey

Stettinius.

done

AND

England last

Lend-Lease

a

*ro

Minneapolis

and

announced

said

vQs

Administrator, has resigned

President

Lease

,

test

00^-^1 iiT

a

his post to return to private life

was

today s.

Cowles, special assistant

to E. R.

as

yk

save<>

J*

los

He

LOAN ASSOCIATION
South

Olive

Angeles

Street

M1-2331

.

"Lend-

outstanding

job."

^<7/

Yield

+*/0

On All Kinds

of TRUST and

INVESTMENT ACCOUNTS
by this

2Vi Million Institution

You receive
Earnings

now

combats

cards

inflation,

the Treasury and

purchasing

power.

request.

upon

FEDERAL

SAVINGS & LOAN ASSOCIATION

operative statements
on request

WE DO THE REST—
All Accounts Insured To $5000

June 30 and December

funds to

Signature

—JUST MAIL CHECK

HAMIHOND, INDIANA

HINSDALE, ILLINOIS

ASSETS

Mortgage

Loans

$12,639,623.68

.Share ..Loans
Cash on Hand and in Banks-—,
U. S. Government Securities

30,272.35
666,942.49

_

Federal
Home
Real

Home
Office

Estate

Loan

Bank

Building
Subject to

and

„

Stock

&

1,502,000.00

.

250,000.00

.

1

.

j

291,760.77

Redemption

9,632.58

Fixtures..-

Charges

;

____

37,426.07

_

Other

Assets

25,900.62

,

$15,453,558.56

MAKE YOUR IDLE MONEY WORK!
If you

desire a Return of 3% on your Savings, then place
your money in the DANIELSON FEDERAL SAVINGS and
LOAN ASSOCIATION, where all Savings Accounts are in¬
to

$5000.00

by

an

Agency of

the United

Government, and where current Dividends
INSURED

—

NON-SPECULATIVE

—

are

LIABILITIES

Savings & Investment Share Accounts
Federal

Loans

Home
in

Loan

Bank

Process,

&

Undivided

,

Ins._

261,204.71

4,409.79

.

Profits

482,034.65

._

States

at 3%,

WORRY-FREE

1,975,000.00
23,168.95

.

L,

„

Reserves

$15,453,558.56

an

IN¬

Semi-Annual Dividends have been
Send for Statement and Information.

Member

Federal

Home

Corporation.

Lean

Bank

Inquiries

Regular

paid since 1916.

$12,707,740.46

Advance

_

Payments by Borrowers for Future Taxes &
Other Liabilities
_!

surance

VESTMENT.

from

and

Federal

out-of-town

Savings

and

investors'

Loan

In¬

invited.

Danielson Federal Savings and Loan Association
84 Main

in

reconvenes

.

September.

and

Deferred

up

He

whether the Ad¬

Congress

e-

Furniture

sured

be¬

was

President,

balance after each

withdrawal.

HI IMS DALE

WICHITA, KANSAS
I

on

Saving

preserves

:

your

and

channels

MID KANSAS

Signs Bill /

v-

Loan Asi

First

so

MAINTAINED
by mail without cost.

LOAN ASSOCIATION

an

and
s o c

enacted.

Mr. McNutt told his press con¬

C- E. Bagley, Pres.

<f A bill to prevent

legislation,
vestigation

to

come

this score be:

SAVINGS ACCOUNTS

FEDERAL SAVINGS AND

"

and

Insured Investment

reported that the Council
appoint a full-time sal¬
President to
manage
the

the payment of
excessive fees or compensation in
connection with the negotiation of
war contracts was signed by Pres¬
ident Roosevelt on July 14.
The

can

ready to demand that national

Savings

(Continued on page 416)

assets of

are

To Limit War Fees

Benefits
on

it

of the contractual relation¬

accounts

in this.

I

—-rnmmmmm—

:

eral

Fed¬

from the fact that except, in emergencies, such

chief earning

Savings and Loan Asso-

President

which

necessary and the Administration

here, of course,
is the nature of the savings and
loan
investment.
There is no

No Market Fluctuation

Washington'Heights'

organization.

Thomas

C.

a

percentage of its

pulsory labor draft bill will be
"if and when" it seems

ready

-

5272 HOHMAN AVE.

soon

aried
new

dent,

i

s

e

example. Fewer mixing of the concepts of savings

to income result also

ciation.
will

a

the

r

further advantage

_

President
^

activity on a
share account

checking or savings de¬

on

in'a bank for

that

Saving and Loan League:

P

than other investors comparable to that of an
institutions. institution with considerably more
that there would non-earning cash on hand.
A

transactions to handle in relation

Association; Frank A.

^^9 i^riial.F^^tl^
eral Savings and Loan 'Associa¬
tion, and Floyd Cramer; ( Yice^
.

can see

Sav¬

*;:'r'^^I^plari';^ (President

McNutt, Chairman of
Manpower Commission,
July 19 that a com¬

on

assets,

than

Courette,

Ernest

of

posit

Savings and Loan Asso¬

of

V.

War

declared

financial

of

Anyone

ings and Loan Association, Syra¬
cuse; Richard A. Greer, Secretary
of White Plains Federal Savings
and

facts of
savings and

a

naturally be less
savings and loan

ciation; Joseph Holzka, President
of Northfield Savings and Loan

Association;

dollar

per

types

trom, President of New Rochelle

President

of

of

the cost of putting
dollars to work? is costly in terms of idle funds),
The savings and loan association and at the same time maintain a
has fewer transactions to handle, liquidity
relationship
with the

Federal Savings

Federal

the physical

are

operation

power

ship with the borrower which
provide for monthly payments on
the principal. Because of the reg¬
ular inflow of payments on loans,
the institution can get along with
less balance sheet liquidity (which

to pare down
the investor's

George Bliss, President of Rail¬
Federal Savings and Loan

Association,
Fleischmann,

the

relatively

association has

resources

asspciation

cause

July 13, composed, of loan association which enable it

on

road

Ninth

the

for the

it at 50.4%

place

What

with

keep at work.

commercial banks.

an¬

do

overall

figures on the 1942 ratio
(not yet available for savings and

the following:

-

to

loan

expenses

leased

Board

their

in 1941 ate up
earnings.
Just re¬

earning

the

of

tions
pledged to
finance new
building construction under the
post-war plan in this State to the
extent of $250,000,000 a year.
The
election of
a
Governing

that

shows

system

operating

The associa¬ '50.6%

Council

the

elected officers of the Mich¬

were

Lease

Another phase of the

com¬

data

diversified types of lend¬

parable figure for member com¬
serve

investment

institution must have to

mercial banks of the Federal Re¬

League, spoke on "PostPlanning" and stressed .the
important part to be played by the
insured savings and loan associa¬

the

and loan

ing.

institutions

Home Loan Bank system.

current
an

War

of

savings

elim-

This is the fig¬

Loan

tions of this State.

necessity

association t<5 maintain complete
departments for investment analy¬
for 1941 recently computed by sis,
studies of the market and

operating income.

Gardner

-

brings advantage

operating costs

cerned.

an

tion drain off 26.39% of the gross

building and loan associa¬

a

g d

still

non-

First

mortgage loans, practically the
highest yielding all-round secur¬
ity today, plus real estate con¬
tracts, also relatively high-yield
investments, brought in 90% of

and

quite

The

savings and loan

a

s

it

abundance of savings.

tion.

■

been

lower

in further inquiry it was

^

i

than

that in

v

than
is
customary in the
speculative financial world.

of

rate

lower

vantage of substantial earnings on
a
larger proportion of their assets

the

dividends

and Loan

a

when

Coun¬

Secretary

New York State Savings

like

present

by Homer

N. Calver, Public Relations

at

even

time

20% of all the loans.

was

In

com¬

qual¬
This is

true

the year

for

York

Paul

meeting
following

service legislation be

dends manage

increase of 6%.

State

the

Mutual

their

had art increase

savings banks

annual

is

of

of 8%.
an

financial insti¬

Detroit,

Mason,
Grand Rapids

explains

Postal savings

a

recent

in

igan

shop which combined with an in¬
herently high gross earning power

savings and loan
had an increase of

/

17%.

to work through the channel of

money

sooner

inherently

increase of 97 %

147 uninsured

associations

its

associations there has evolved an^1

this period.

over

At

McAllister

or later focuses the spirit of
inquiry on the earning
of that institution.
Most financial institutions which have
weathered many decades in the American economic system have
evolved a general pattern of earnings arid expenses which by now
seems inherent in their particular type.
For the savings and loan

savings and loan as¬
an

w.

power

lows:
sociations had

w.

Is

held

Association,
showed the percentage of net in¬
crease
over
Dec.
31,
1937, in
amounts of savings held by prin¬
cipal type of savings institutions
in the State of New York as fol¬
and

Savings

415

Street

Phone
Assets

377

over

Danielson, Connecticut
$4,000,000

SAVINGS AND LOAN

ASSOCIATION

OE DETROIT

THE COMMERCIAL & FINANCIAL CHRONICLE

416

War Responsibilities Of Savs.-Loan Ass'ns
To Be Subject Of League Conference In Chicago
second

The

conference

war

United

of the

Savings and

States

League will be held in Chicago, November 30 and December

Loan

1, with two full days devoted to the war time responsibilities of the
savings and loan institutions and no time off for socializing.
This
is the announcement made by Ralph H. Cake, Portland, Oregon,

president of the League.
He

that

indicated

session

a

on^

responsibilities. Mr. Cake
government securities to help fi¬ pointed out that the associations
institutions'

these

the

nance

equal

would

war

housing

of

purchase

already assured of going con¬
siderably over their goal in Gov¬
ernment security purchases this

the

on

and that they have sold an
estimated
$600,000,000
of
war
bonds to the public.
year

this

program

with the

year

of

discussions

The board of

their loans for

of

sale

bonds

for

war

Gov¬

these

t i

i t i

v

which

ac-

in

e s

savings

and loan

con¬

to address the

,

Ralph H. Cake

it is not too early

associations

to start dis¬

in
'Maintaining a maximum of em¬
ployment in the home building
cussing what their part can be

the war was ex¬
He said
pressed by Mr. Cake.
that the war conference would
after

industry

probably touch upon the post¬
war planning in savings and loan
which looks in that direction, and
for which a committee has already

(from borrowers)

the Federal Home Loan Bank sys¬
tem which has

policy adopted, last

In line with

by

year

board

League

the

of

savings and loan
business is sidetracking its reg¬
ular convention set-up
and in¬
stead
calling together * for this
directors

Finally

a

who

will

have

of share

ers

earnings

over

as

will

drive

have

served

ual

in

and

local

institution,

the savings

to

owner

be

rewarded with

equity dividend.

reached

of

equality

7.3%

were

of

as

Dec.

31,

claim

on

There is

the rest of the

on

no

money

in

by the association. Therefore
the only factors which are taken
use

for

substantially in the

sociations the

past few

policy has been

bases'

for

money

this

war

the

30

as

than

last

as¬

and

of the

one

smaller

distributed

June

years

sum

of

dividends
June

Section I

Thursday Edition, Sections I and II

Approximately 5,000 Pages Yearly of Business, Banking and

Financial, Statistical, Editorial and News Information.
Daily high and low prices on all New York Stock
Exchange stocks for entire week appear in Mon¬
day's issue together with weekly high and low
price ranges in tabular form

on

other U. S. and

bonds—Monday's paper
Corporation and Municipal

News Sections in addition to dividend, redemption,
sinking fund calendars and banking statistics.

Semi-Weekly issues for $26.00 Annually,

"The

library

describes

Chronicle"

as

"The

Commercial

that claims

quotations;
to

serve

a

authority
necessity in any

the

business

man.

Not

only financial

and

foreign industrial movements presented."

news,

but government activities

year
your

my

their entire operating ex¬
In such situations net
earnings, except for small addi¬
tions to reserves, can be distrib¬
uted Jn toto to the holders of share
penses.

While

is

it

above that

true

mentioned

as

savings and loan asso¬

dividend rates have, been

ciation

downward adjust¬
ment for the past three or four
years because of lower interest
rates
generally and the extra
emphasis on building up strong
reserves and undivided profits, it
seems to me that some margin of
undergoing

a

the savings and loan

investment's
alternative

of earnings over

rate

maintained.

will" be

investments

Certainly it will be if all the fac¬
tors discussed above retain their

the picture.

in its

report, states that

crop

with moderate weather and bene¬

subscription to the "Chronicle" for

required

is

weather

to

The bank's re¬

stimulate growth.

port further states:
"Rain

30,

is

and

Alberta

of

areas

recent

wan

rains

Saskatche¬

improved

have

prospects but yields will be light.
Coarse

grains

making

are

good

progress.
Flax is in bloom, with
weed infestation heavy in some

in parts

and rust reported

fields

There

Saskatchewan.1

have

districts.

damage is small.
Sugar
beets are in fair to good condition.
In the Province of Quebec, crops

period. / Since
this nation

and

making satisfactory

are

In the Maritime Prov¬

.

the

is

season

late, prospects for

yields

average

favorable.

are

In

one

British

Columbia,

generally

have
by

crop

been

warmer

indicated

prunes

the

con

fighting,

of

Jpan vinstitutions have been
new

con¬

home v loans. / Govern¬

mental

is

the

Our

thei;r ; 112
;

own

a

through,'

of existence have

stood; out. as the guardian of that;
right.

What

could

be

more

ap¬

propriate - than;

the(; motto:.. "The
American Horne, the Safeguard!

sociations

and

a

to

institutions '

of American

maintained.

right

years

regulationsand restric¬
tions, of course* have curtailed
mortgage loan volume. However,
despite these conditions,- our as¬
have

associations

home and the land upon which it

-

Savings

loan

initiative, private capital and free
enterprise. - One of the four free-'
flqms for, which this country is

post-wa? ipests.

entrance

into the war,

deprived' of financing

Liberties."

.

This

is;

the key, the basic and fundamen-;
tal

principle, upon which savings
and loan associations in this state
throughout

the

nation

have

favorable
from

mortgage loan ieyel arid prospered.
indications,, most/of = the as¬
Much of

sociations; have maintained their
mortgaige portfolio as of June 30,
favorable
last.

to

that

December

of

This is true largely in met¬

ropolitan

and is due to in¬

areas

creased

activity in the sale and
purchase of older homes.
Savings and Loan has been a
stimulating factor in carrying out

ings during this

,

spirals that threaten

all

up

members

of

the

League and
to the present time, it has been
policy of the League to service
of the

associations

addition, most savings and loan of membership.

institutions

qualified

in

for

this

the

state

sale

of

in

10 of the associations in the state

the

our economy.

industry

the
Min-/
nesota Savings and Loan League,
a ' state-wide, trade
organization.
The League celebrated its 29th an¬
niversary at its annual meeting on
June 17 with a one day stream-',
lined war-conference,
at which
present day policies and post-war'
planning were featured. All but

institutions have provided a coun¬
ter force against the inflationary
Iri

loan

state/is centered around the

are

period.

war

the activity of the sav¬

and

ings

Our

buying War Bonds at

Minnesota

have

executive

War

in

a

record rate.

associations

have

regardless^

Rather elaborate!

offices

are

maintained

Minneapolis under the direction

of the year and

purchased

an

have themselves

equal

amount

of

Government bonds and securities.

They have made
bution to the

ing

further contri¬
effort in send¬

fifty of their young

over

into

a

war

the

different

men

branches

of

military service.

The jobs that

these

have left will

young

men

remain open for them
turn.

on

conducted in the fall.

are

sold

nearly $10,000,000 worth of Wari
Bonds and Stamps since the first

their re¬

All the benefits that they
enjoyed in their employ¬
ment, remain secure.
Most asso¬

have

ciations

May Non-Farm Mtg.
Recordings Higher
During May, recordings of nonfarm mortgages of $20,000 or less
amounted to $327,092,000, a 6%
gain

April and marking the

over

third consecutive month in which

has

activity

mortgage

increased,

the Federal Home Loan Bank Ad¬

ministration reports. The May to¬
tal was about 6% below the figure

are

and

prospects

much

im¬

weather.

for

cherries,

firms have been

quick in; recog¬
nizing this factor in their empha¬
sis on the "House of the Future"

black

high; for apples,

Address

currants

pears

are

and grapes

fair; and for peaches and apricots

Bill Company □

low.

Root crops are

growth."

■

: /••-••

showing good

-v'

.//:••;•.

.

while

the

.

-

total

for

individuals

dropped only 1%.
Among insti-,
tutional lenders, savings and loan
associations showed the greatest
in
their ; advertisements.
Civic resistance to
the general decline
groups; in their ■ planning, have
with an amount only 14% less
likewise recognized the great need
than in 1942.
■'
/ •
for home construction.^ A recent
"The number and/amount of
survey estimated that 66%>of the
people of this nation plan on own¬ mortgages recorded during May,
ing their own homes after the war. by type of lender, are as follows:
Number
Amount
% /
Much of the savings now accum¬
Savings and loan
ulated in our associations will be
associations
to

and

chase

/financing

the pur¬
construction of new

The

homes.

available
and

loan

with

an

in

tremendous
banks

and

institutions,

sums

savings

together

ever-increasing high na¬

Ins.

companies

Banks

and

„

$107,221,000

4,781

24,435,000
65,688,000

;

33

'

8

trust

companies
Mutual

36.161

18,738

__

diverted




the

and

offer the opportunity for personal

for the same month last year and
25% less than in May 1941, largely
continuing their sal¬
ary payments on an adjusted scale reflecting the shrinkage in con¬
are making good progress and the
struction loans, the announcement'
and those that have pension funds
outlook is favorable for average
(issued July 10) explained; it
are keeping up payments for these
yields in most districts. Harvest¬
added:
ing of an excellent hay crop is .young men and women while they
"Mutual savings banks reported,
are away.
under way.
Pastures continue in
the largest proportionate gain for
Many problems related to the
very good condition.
Roots are
the month, which was 16%; other,
progressing favorably and average war' effort and war conditions
types of lenders experienced rises
yields are anticipated. Apples are have confronted, our management
of 4% to 9%/;- Savings and loan
Management
sizing well and small fruits are in the past months.
associations accounted for about
promising. In Ontario, crops gen¬ in turn has had to revise its think¬
% of the May recordings.
Indi¬
erally
continue to show good ing along many different lines. As
vidual lenders and the bank and
growth under satisfactory weather we look to the future, we are to¬ trust
company
groups followed
conditions,
although rains
are day planning and providing for
with 21% and 20% of the aggre¬
needed in a few eastern areas. the time /that we may enjoy the
gate.
Cutting of fall wheat has com¬ fruits and benefits of a prosperous
"For the first 5 months of 1943,
menced in some districts; while post-War era when private enter¬
the yield will be below normal, prise may again take its rightful recordings were; nearly 19% be¬
low last year and 24% less than
the quality is good/ Spring grains place iri our economy. .Every in¬
in 1941.
Declines of more than
dication -of Governmental plan¬
are heading out well but straw is
26 % from 1942 were reported by
ning and of business research
insurance ^ companies*1 commercial'
short and returns will be con¬
points to a vigorous post-war
banks' and mutual savings banks,
siderably less than average. Corn housing
program.
Advertising

proved

1

□

in

comes.

Savings

ficial rains, crops

ing made by the crops, and though

Chronicle,

Company

me

needs

Government's war program
and in encouraging thrift and sav¬

of Montreal,

Bank

22

July

struction

the

Satisfactory Progress
For Canadian Crops
The

nancing institution for home
•

struction

accounts.

Yields

Bill

ac¬

reserve

ofj thrift and' home fi¬

to pay

progress.

at a-cost of $26. I understand that I am also to receive
Index every three months without further charge.

Name

tablished tremendous

of reserves, are; sufficient

volume

and roots

Spruce and William Streets, New York (8), N. Y.
Please enter

.

this

in

inces, satisfactory progress is be¬
The Commercial & Financial

paring for these changes and will
be ready to ; meet the challenge
when it

over seven

:

follows:

bankers' Bible f the recognized

for stock and bond

and

Sav¬

war.

,

Canadian listed stocks and

Week"

ings And loari managernent is pre¬

This, it is hoped, will pro¬
There are as¬
country, which: vide a back-log for the ultimate
demands that will be made upon
have
such
substantial.: reserves
that their earnings on the/dollar this type

gauging divi¬

Reserves have been

reserves.

increased

Monday Edition,

and Financial

diately following the

six

the; first

During •
this
same
period these associations have es¬

of the association.

sociations

urgently required in
The best pros¬
dend rates in the association are many sections.
In the. dry
its actual earnings arid its needs pects are in Manitoba.
into consideration in

Complete Chronicle Snbscription Includes

"Business

in¬

net

a

a period/
activity imme-;

business

732,650).

1942.

Insect

104

shown

assets

brisk

•

for

also contains extensive

;of

of

counts.

been hail losses in some

:

have

v

three -quarter million dollars ($7,-

future earnings

any

over

months of 1943 of

Bear in mind that the reserve has
no

and

crease

capital, surplus and un¬
divided profits accounts of all in¬
sured
commercial banks which

of

A

936

414)

page

tional /incomeforecasts

100,000 members,
of earnings;amounting
to, $1,094,-

had

associations

position

a

dividend to

with the

warmer

paid

the

selling committees, Victory Fund

committees,

the

in

counts

(Continued from

31, which
protective ac¬

these

that

means

8%

estimated

an

December

on

generally in the Bonds. While the public was put¬ of your correspondent,
Besides
Prairie Provinces are. progressing ting more mpney into savings and the annual meeting, a mid-winter
one class of investment in use by
satisfactorily, but they 'are late Joan associations than ever before* conference is held each year in;
the association Which would bene¬
in .their history* they were also
February and ' district meetings
fit by a reduction of the earnings and, where moisture is sufficient,

an

bond

on

anticipated
cooperative

a

and loan association has no resid¬

$300,000,000 this
securities
among those in attendance
also the savings and loan

who

for

Because it is

this
men

get all the
and above an ade¬

allowance

Government

in

will be

the

asso¬

accounts

quate

of

investment
year

of

chairmen

were

assets

from the floor level of the present influence in
capital market by the nature of
its distribution of earnings. Hold¬

responsibility of maintaining the
war program of the business full
speed ahead for
the duration.
State

ciations
of

away

the

localities

savings and loan

ciation's rate of return is attracted

conference the leaders in the vari¬
ous

been in operation

the past ten years.

financial

'

during

month.
Meanwhile its
liquidity line in emergencies has
been enhanced by the creation of

losses.

started, functioning,

will flow out

given

a

conference.
that

in

and

*

.:

the

pretty accurate esti¬

a

mate of what money

program

Belief

form

can

will be asked

for

(Continued from, page 415)
crisis, the associations

the 1933

as

tributes to the
war

,

Savings-Loan Ass'ns
Operating Costs Low

offi¬

ernment

cials in charge
of

full day's session.

a

the

to

public.

ex¬

national or¬
ganization will meet November 29

their

of

and

directors and

ecutive council of the

housing

war

lintiesoia Savings-Loan Associations
Rave Maintained Steady Growth

is

are

occupy

prom¬

inence

$71,000,000 as against $81,000,000;
according to reliable estimates. It
interesting to note that the re¬
serves
of savings and loan asso¬

Thursday, July 29, 1943

bks.

20

3.463

12,940,000

4

Individuals

31,260

70,054,000

21

Oth.

13.279

46,754,000

14

107,682 $327,092,000

10O

..

savs.

Mortgagees.

Totals

Volume 158

Number 4198

THE COMMERCIAL & FINANCIAL
CHRONICLE

Royal Bank of. Scotland

Aetna Life Ins.

Bank Stock Analysis

incorporated by Royal Charter 1727
HEAD

Connecticut General

OFFICE—Edinburgh

Branches

throughout

Scotland

Mid Year Figures

Life Insurance
Available

LONDON OFFICES!
3

Bishopsgate, E. C. 2

8 West Smith
field,

49

Request

on

Travelers Insurance

E. C, /

Charing Cross, S. W. I

Laird, Bissell & Meeds

Burlington Gardens, W. I

Members

64 New Bond Street, IV. I

and

New

other

York

Slock

Members

Exchange

leading exchanges

120

;

TOTAL ASSETS

York

Stock

Exchange

YORK

5, N. Y.

Telephone: BArclay 7-3500

1 WALL ST.

NEW YORK 5
Telephone Dtgby 4-2S2S

New

BROADWAY, NEW
Bell

(L.

A.

Teletype—NY

1-1248-49

Qlbbs, Manager Trading Department)

£108,171)956
Associated Banks:
'Williams

Deacon's

Bank,

Ltd.

Glyn Mills' & Co.

Australia and New Zealand

BANK OF

NEW SOUTH WALES
(ESTABLISHED
Paid-Up

1817)

Capital

.

£8,780,000

Reserve

Fund

Reserve

Liability of Prop.

6,150,000

8,780,000

£23,710,000

Aggregate
Asset*
Sept.,* 1941

30th

£150,939,354

—

SIR ALFRED

DAVIDSON, K.B.E*

General

Head

Office:

Manager

George Street, SYDNEY

The Bank of New South Wales is the oldest
and largest bank In Australasia.

branches

B70

end

London,

and

efficient

traders

With

over

all States of Australia, Id
FIJI, Papua and New Guinea,
It offers the most complete

in

New Zealand,

banking

to

service

travellers

and

Investors,

interested

in

these

countries.

LONDON

Threadneedle Street,: E.

29

:

OFFICES:

C.

47 Berkeley Square, W. T
.

Agency arrangements with Banks
throughout

the

8.

D.

A.

Increase

NATIONAL BANK
of INDIA LIMITED
Bankers

the

to

Kenya

Government

Colony

and

in

Uganda

Head Office:

26, Bishopsgate,
London, E. C.

.

Branches

„

In' India,

Burma. Ceylon,, Kenya
Colony and Aden and Zanzibar'

Subscribed

Paid-Up
The

Capital

__£4,000,000

Capital

Reserve

£2,000,000

Fund_,.r
conducts-

Bank

.£2,200,000
description

every

banking and exchange

Trusteeships

and

of

business

Executorships

also undertaken

NATIONAL BANK
of EGYPT
Head
Commercial

Office

Cairo

Register

No.

INSURANCE &

Cairo

1

BANK STOCKS
FULLY

PAID

RESERVE

CAPITAL

.

£3,000,000

....

FUND

£3,000,000

Bought
Analyzed

Special

LONDON
6

to

AGENCY

7

King

William Street,

E.

C.

Inquiries

Branches in all the

principal
EGYPT

and

Towns

the

in

SUDAN

A. F. Gooding With Dain
(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—Arthur

Celebrates 20th
Twin

City

Birthday

Federal

&
Loan Association of Minneapolis,
Minn., have published a handsome
illustrated
Million

growth

booklet

In

20

Savings

entitled

Years"

to

$20,029,211.87
March 19, 1943.
Officers

are

A.

"20

showing its

M.

as

of

J.

M.

Dain
& Co., Rand
Gooding was recently
with Goldman, Sachs & Co. in
Chicago.
Prior thereto he was

Tower.

with
Otis

Mr.

Smith,
&

Co.

past he

Barney

in

was

&

Co.

Cleveland.

and

In the

connected with Blair

& Co.

may

from the Association

Gooding has become associated

with

Blaisdell,

Chairman, Roy W. Larsen, Presi¬
dent, Henry Rines, Vice President,
B.
N. Bell,
Secretary-Treasurer.
Copies of this booklet

F.

on

be had

request.

Jacques Le Bermuth
In

Army

Jacques C. Le Bermuth, former¬
ly in the investment brokerage
.

business

Smith & Gallatin To Admit
:

Smith

&

Wall
Street, New York City, members
Gallatin,

11

:

of the New York Stock Exchange,
will admit Blanche A.

Prentice

K.- Smith

in their firm

as

to

Smith and

partnership

of August 5.




in

New

York

City, has

been inducted into the U. S.
and is

now

Army

stationed at Fort Ben¬

jamin Harrison, Indiana, where he
has

begun

Finance
Center.

basic

training

Replacement

at

the

Training

and

Dealers
a.

m.

invited.

&

Quoted

•

Reviewed

Trading daily 7

and

Sold

*
-

Bulletin

Compared

-

Booklet

Service

Brokers.

to 5 p.

Orders

m.

(P. C. T.)

solicited.

418

totaled

curities

Managing A Business For Stockholders
'§?. Through The Vicissitudes Of Inflation
(Continued from page 402)
this

and

have authority.

should

Government,

(8)" The Federal
each
State,
each

County and
business should be obliged
up a strong, capable organ¬

every
to set

ization

workable

ready

have

to

plans for the return to peacetime
enterprise under private initiative
and individual responsibility.

Every cost possible should
be lifted from the backs of the in¬
dividual and from private busi¬
(9)

and

ness,

encouragement

every

given to the greatest possible pro¬
duction under free, independent

enterprise.

and private

taxpayers and freeze it for a

all

determined length of
the

this

be written to

could

law

After

time.

that a certain percentage
these
non-negotiable certifi¬

arrange
of

redeemable

be

would

cates

an¬

nually, beginning five years after
date.

this

comes

war

a

great

problem of factories geared to an
enormous
production, with high
labor costs.
Of course, there will
great demand from people
savings accounts or bonds.
After this the excess production

be

a

with

of

cerned

sound

interest of

best

production, costs,

and

nomic

trade and in¬

out

factories begin to

like

outlined for England in his radio

half

as

address March 21.

produce

low wage scale?
The attitude of many

the

who

man

roof

the

has
his

of

on

their

people is
off

taken
house

and

sees black clouds appearing on the
notes horizon, and then hopefully tells
give you his family he is sure the storm

I trust that these hasty

in

will

-

measure

some

ideas of what should be done
Of course, if we
could go back to 1932 or even to
1939, I believe that many of the
present economic and social prob¬
lems and future difficulties could

that way.

my

will not

immediately.

My constant business trips take
me
over
a
large 4part of the

over

come

United States, and I am both sur¬

prised and alarmed at the com¬
placent way that many people are
have been avoided, but now we facing the
future, saying: "Oh,
must accept conditions as they
everything will be all right after
are

and go on

from here.

dealers who

important that this sub¬
ject be clearly understood by the
public as well as by the legisla¬

investor

it does seem to
that Kennecott Copper is one
but

quirements

Trust

mented

as

Wright

panics

com¬

President,

I

it with

read

trouble dur¬

period of depressionsuch

of interest and

Company

Virginia, Richmond, Virginia

pressed

I have

his

Dr.

Ivan

aging a

just read the article by

Wright, entitled "Man¬
Business for Stockhold¬

sure

follow

to

a

major in¬

a

very

both

Vicissi¬

the

tudes of Infla¬

tion."

which

think

nail

The

Dr.

the

on

much im¬

con¬
rec¬

ommended

i

said:

policy,

C. R. Hope

be

old

mistakes."

terrific

The

taxes,

com¬

with

bined

and

term

piece and I

R.

the

C. H. Phinizy
high cost what
may
living dur¬ happen at the
ing
inflation, cessation of hostilities.
history shows
HENRY M. BACH
have brought

Dr.

of

Bradford

H.

Walker

poverty to the

master¬

putting it out for

E.

WOODRUFF

President, Erie Railroad Company

determine

o

a

ing the Congressional recess.

commit¬

ments, due to
our
inability
t

am

is

is

further study and reference dur¬

long-

no

of Inflation"

tudes

have

ing strong li¬
finally turned quid position
to

Wright's article, "Managing
to

Business

a

r

Stockholders

Steiner, Rouse & Company

This has been

I have been much interested in

by severe deflation, as
happened after our last two wars.

reading the article by Dr. Ivan
Wright entitled "Managing A Bus¬
iness
for
Stockholders
Through

of

mass

consumers.

followed
As
we

I

it, the great problem

see

will face after the

war

is the

the

Vicissitudes

of

Iniiation."

should

Era"

went

through

where

we

"New

one

told

were

many

managed prices, etc., would pre¬
another

vent

depression.
This
by the worst de¬

followed

was

pression in
been

able

inflation,
ently

are

Must

to

no

country has

completely

control

for which we
surely headed.

appar¬

stitutions

individuals

and

carry

crushing load of public debt
any relief?
It seems to

without

it is

like

sack of meal

a

man

on

with

a

heavy

his shoulders—he




away

the
the

sound,
from

directed

markets

to

encourage

for

eliminated

by

that the small

seldom-—if ever—welcomed to

the list of customers

of the large

Soviet Union Reported
Relief

supplies

wounded

for

the

war
civilians

homeless

and

in Soviet Rusia to the amount of

$20,000,000
have
already been
provided, Norman H. Davis, Na¬
tional Chairman of the American

Red
Mr.

Cross,
Davis

announced
that

said

14.

July

than

more

$10,000,000 worth of medical sup¬
plies, surgical dressings, clothing,
blankets, soap and other necessi¬
ties have been sent to the Alliancd

and

Cross

Red

of

Red

Societies of the USSR.
that arrangements
made for shipment

Crescent

He added

have also been
of another $5,-

worth of hospital ancj
supplies •. and a further
$5,000,000 worth of clothing, shoes
000,000

medical

and other civilian items.

Future Money

Of

The World

and he is
"The
Future
Money
of the
the one who is most in need of
World" is the title of an attractive
careful
personal attention. The
54-page booklet prepared by R. Vi
average investor who buys listed
Klein Company,
170 Broadway}
securities is influenced more by
New York City.
This booklet
technical positions of the market
concerns a vital problem affect¬
as
interpreted by chart makers
than he is by fundamental values ing every owner of securities dur¬
ing the post-war period, and dis4
cusses
the
questions
of what
sets forth the devastating effect
money is, how it works, how the
Of inflation in its true light.
Morgenthau-Keynes plan will af*
feet us, and how we will pay a
EDWARD C. ROMFII
Stock Exchange houses,

*

■*

debt

billion dollars.

probably 350
Copies of this in¬

of

Bank of Miami teresting booklet
Wright's article sets forth request from R.

Dr.

lucidly and impressively

the evils

be had upon
V. Klein Com¬

may

pany.

Bank & insurance
Stocks
<Continued from pafe 417)
It will

producer of

raw materials,
deposits, is out of
is strong with cash and
debts during the period

be noted that dividends

which has rich

for the half year

have been

debt and

ered by generous

margins, except

can

avoid

which

rising costs and prices, it may
be one of the best inflation hedges.
you

many such companies do
know?
There are almost

none."
I'm

tor's

spect.
sheet

wondering

if

Kennecott

requirements

in

every

Dec.

31,

cash

and

1942,

a

$220,972,967, of
se¬

great

deal

of

food

In¬

in¬
for

for the
one

am

L. JENKINS

very

much

relatively

slim

impressed

with the article and I feel that it.

duration of the

thing,

this

war.

policy

For

allows

gradual increases in capital funds
be achieved,

ing

Commissioner of Finance,
State of Idaho
I

a

The conservative divi¬
dend policy indicated by these
figures seems likely to continue

to

G.

shows

coverage.

of inflation.

re¬

current

Government

Woodruff

thought upon the possible effects

According to their balance
of

E.

Through the Vicissitudes of
flation," is interesting and
cludes

assets amounted to

which

Robert

cov¬

National Shawmut of Bostoq

for

of

Copper would not meet the Doc¬

corporations, financial in¬

be

rational

I

But how

history.

our

So far I believe

a

and

be

Wide Red Cross Aid To

;

such

We

me

be

could

subject

President

continued high cost of note that page 9 contains the fol¬
doing business.
After the; pent- lowing:
up
demand has
been
satisfied
"No doubt you have read that
there will naturally be a grad¬
corporations producing raw ma¬
ually lowering sales volume, which terials such as copper and oil are
in turn will be followed by lower
good inflation hedges. They may
prices caused by keen competi¬ be and they may not be at all. If
tion.

must

The First National

probably

this

this

investor, with a few hundred or
a few thousand dollars to invest,

maintain¬

"Most

new eras

ma|e our security

orderly

orderly

It is also well known

s

in accord with
our

al¬

is

legislation or
regulation, it would be better for
the investing public to have the
Stock Exchanges eliminated and
the over-the-counter business al¬
lowed to continue with reasonable
supervision and regulation.
It is obvious to every one that
the large individual
or institu¬
tional investor must turn to the
over-the-counter market to buy
or sell large blocks of securities.

be

very

servatism

investor

"goat."

thoroughly analyzed
and fairly
considered, the decision, no doubt,
would be that if anything should

of

head when he

out

non-professional
ways the

to be sold.

perplex¬
ing.

Wright hit the

is

trend

to

are

market

general, nor to the public, but
every one
certainly knows that
Business
For the public auction block is the
Stockholders through the Vicissipoorest way to secure a fair and
orderly price for anything that is

of

sides

the

a

with

n

in

from Kansas

"Managing

presen-

tio

we

markets

Representative in Congress

Through the question,

ers

I

t

was

a

If

the reason
The natural and sensible way to that every one would benefit ex¬
flation.
At what price the stock
market anything is by negotiation. cept those who make their living
would sell during this period, his
accounts
It is well known in financial chv by high-speed trading
guess is as good as mine.
But the cles that
large blocks of even the which jump in and out of the
company should be able to sur¬
market with great frequency as
most
widely distributed
stocks
vive. Anaconda and International
"tips" and "flashes" are passed
can neither be purchased nor sold
Nickel
are
likewise
companies on the
Exchange at the market around with lightning speed.
with natural resources and amply
without distortion which creates a
A. W. Smith & Co., Inc.
strong financially to survive."
loss to both the purchaser and Boston, Mass.
seller. This fact may not be known July 23rd, 1943
HON. CLIFFORD R. HOPE
to the members of Congress in
is

as

great deal of

a

who
consistently
los
by this process, it woul
startling disclosure, '

money

securities originate almost

follows:

Ga.

Augusta,

percentage of such in-f

prices of securities because of fear of what
entirely might happen to "the market"
in the listed markets. High-speed, without
regard
to
investment
"Mr. Bach is quite right. Ken¬
speculative, trading creates the. values or long-term prospects. '
necott is strong enough and has
This all adds up to the conclu¬
unhealthy
boom
which always
ample liquid resources to pay its carries in its wake the makings sion that any laws or regulations
taxes and costs for a long time
of a distressing
panic, and the imposed upon security dealings
Dr.

letter

above

If

Company,

compare

.

National Association of Securities feverish glamour and excitement
them, and while International Dealers is doing a commendable generated by rapidly fluctuating
Nickel and Anaconda Copper are job in policing transactions to see quotations which are influenced
entirely
by
premature
not
quite as strong, they also that unreasonable profits are not almost
made in such transactions.
It is "news flashes," "tips," and dis¬
shape up pretty well.
orderly^? haste ; to buy or sell
Editor's Note: When shown the my observation that booms and
me

C. H. PHINIZY

&

The

to

the

vestors

day for the

over-the-counter

the

.

if it were pos¬
statistics show¬

of

President, Georgia Railroad Bank

BRADFORD H. WALKER

if

sad

a

market should be eliminated.

the war."

IVAN WRIGHT.

Life Insurance

be

regulatory bodies.

It would be

find

Very sincerely yours,

The

ing

tors and

appreciate that it is not easy
too many companies that
will fill all of Dr. Wright's re¬
I

sible

it is very

are

: •

;—-——-—■

of investment; and

engaged in" serv¬
ing the needs of these investors,

account of depletion.

avoid financial

again where will we come
in the long run, after foreign

Prime Minister Churchill

sound

on

a

would adopt an eco¬
financial policy
as

we

ceived

and

Then

benefit of hundreds of investment^

insomuch as
New York State refuses to recog¬
nize deductions in dividends re¬
side

ing

ternational exchange values.
I wish

attempt to hold our own
scale must the answer be a

To
wage

impression that depletion
are very much on the

of

economics

the

my

charges

conservative

in 30-hour week?

debts

all

paying

money;

all con¬

is

to

After

the necessity

credit;

and

the

H
Over-Tfie-Ooisnter-iarksfs
i

ing properties, railroads, steam¬ Vernon Hughes in support of the over-the-counter market. For the
ships, plants and equipment.
It sake of millions of investors, small and large, as well as for the

This

(10) Re-educate
Government
and employees, college will have to fight declining prices
professors, State and local offi¬ caused by keen competition.
Can this country live on its own
cials, labor leaders, farm leaders,
business
men,
editors,
bankers fat, so to speak, and if not how
and brokers in the simple
and are we going to meet foreign la¬
truthful fundamentals of sound bor competition?
money

Proposal To Wiste Oufi

funded

has- no

company

Condemns

of

ing by non-negotiable certificates.
would spread the debt over

it just so long before

carry

officials

for

The

- as

liabilities

the weight beats him down.
One solution is compulsory sav¬

can

fi¬
organization

$155,931,654,

against
current
$61,630,699.

Thursday, July 29, 1943

I have read with great interest in your issue of July 22 the letter
debt, and is the largest producer
of copper in the United States. written to Congressmen and Senators by Mr. Taylor, President of
Reserves for depreciation are over the Baltimore Stock Exchange, urging the abolition of the over-theone-third the listed value of min¬ counter markets and also the very strong article written by Mr.

<§>

Treasury in handling the war

nancing,

"

THE COMMERCIAL & FINANCIAL CHRONICLE

.

E.

inflation,
\-v*r\

ntt

C.

Romfh

and I wish we

PAHVIH

tliinlrovc

the

thereby minimiz¬

development

of

a

top

heavy ratio of deposits to capital

had

funds,

i.e.:

capital,

undivided profits.

surplus

and

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4198

In New York Federal Reserve District

the

City

was

was

New

trict, the Bank points Out in its
July "Monthly Review." In pre¬
senting its survey the Bank says:

while' in other cities of the

York

deposits

of

retaik and

and

public

Dis¬

for

busi¬

that

to

or

Bank

states:

New

the

banks

Reserve

with

York

City Banks

of

deposits between December, 1941

District
Of the

all

banks

in

turing,

for

accounted

of

the

for

An

11%

of the total

the

of

porting banks in other ; cities

pronounced

increase

in

manufacturing and construc¬

considerable
extent
enlarged
working capital requirements as¬
a

distribution of the in¬

"But the

by type of owner, while
differing
somewhat
in detail,
showed striking similarity in its
crease

sociated

trade,

deposits
the

less

dollar volume in

York

New

reporting

a

In

^un¬

dominant factor.

utility balances and
increases

about two-

represented

was

activities.-

liquidation

The indicated increases in public

in reporting banks in other
cities of the District.
Classified
crease

third of the total

war

inventory

doubtedly

the in¬

general characteristics to

with

in

preciation

City

at

banks, and a slightly larger pro¬

portion in other reporting banks.
Jn both cases nearly 70% of the
total increase in demand deposits

other

reflect

ments.

some

groups

accumulation

be used for

Insurance

the

of

doubt¬
of

which

reserves

this time

stock

possibilities,
for

of

Creek

Beach

of

de¬

♦

♦

*

#

•

Readers of this space while

they lost
decline

the

some money on

warned

were

far

What will
on

*

past three weeks

happen from here
something else. Markets

is

in the throes of declines don't

pay attention to previously
strong determined
support
levels

was

bull trend.

a

has

As of last week this column

optimism the
had advised the following.
trying to
say that it was tired of the Reynolds Tobacco B bought "*
whole thing and wanted a at 31V& was to be stopped at
rest.
Inasmuch
as
markets 30. Having broken that figure
Fair?
seldom rest after sustained you are now out of it.
itself

was

advances

the

Morse
should
have
de¬ banks
been sold last week at 39 or

inevitable.

was

resultant

so.

As last week's column went

distribution

by Simons, LinCo., 25 Broad Street, New
City, members of the New
York Stock Exchange.
Copies of
this circular may be had from
Simons, Linburn & Co. upon re¬
quest.
burn &

Attractive

Flinkote is still above it's
the presence of new
20 stop price.
If it breaks it
buying became more
act accordingly.
and
more
apparent.
The
*
*
stocks which had given such
National Distillers bought
good performances, perform¬

to press
but poor

prepared

been

v); -v/,:

Yet under¬

all this

market

Prospects

Hi

-

which

ances

indicated

more

strength, refused to live up to
their promises. In
advancing
markets it is important to

at

31

sold last week at

was

about 34.
>'W::••

V?

*

# 7 •«7-i.. *

.f

y >

'* j

: v.-

;?;*\

'

77

.

•

7

"•

f1

-

Newport just managed to
shave the 17 figure at which

watch not the market but in¬
dividual stocks for top tenden¬ it was to be sold. Keep your
City-Ada-Atoka
cies. And the stocks to watch stop at 14.
Railway and the first mortgage
*
*
♦
u.
fixed and income 6s of 1954 of are those which have
given
Oklahoma City Shawnee
Off
hand
the
Inter- better than
following
average perform*^
Urban Railway offer interesting
stocks should start to act bet¬
ance; it is such stocks that
mortgage

income

6s

of

1954 of Oklahoma

possibilities at current levels, ac¬
cording to a memorandum issued
by Lilley & Co., Packard Build¬

don't go down as far as the ter when as and if they hit
market and go up further the following prices. Canada

ing, Philadelphia, Pa., members of
the Philadelphia Stock Exchange.
Copies of this circular may be had
from Lilley & Co. upon request.

when the market itself turns

Dry 20-21; Colgate Palmolive
20-21; Crucible Steel 32-33;

up. In a bull market such are
the stocks to have. Conversely

Republic

these

cannot

and U. S. Steel about 52.

are

the

ones

which

are

Steel
*

*

Reorganization Rail

de¬

barometers of

Outlook Interesting

replace¬

company

the

neath

York

First

tion group probably represents to

District.

the

4%

the firm believes offers attractive

ex¬

total increase.

"The

the

interesting descriptive cir¬
on Fashion
Park, Inc., which

cular

total

individuals, partnerships, and cor¬
pansion;
wholesale
and
retail
porations in all New York City trade and
dealers in commodities
banks at the end of 1941, showed
for about 8%; insurance compa¬
an
increase
during the fifteen
nies for 15%. Altogether, the in¬
hionths ended March, 1943 of ap¬
crease in deposits of business con¬
proximately
$1,300,000,000
or
cerns
accounted for 83% of the
about 23%
in such deposits—a

percentage increase less than half
as large as was shown by the re¬

of

It is in¬

Clothing Stock Looks Good

the City, however, was consider¬
growth in deposits.
This repre¬
ably less than in the remainder
sented an increase of 79% for this
Of the District'. These four banks,
class over December, 1941.
which held slightly more than half
The public utilities group ac¬
of the total demand deposits of
counted

busi¬

square

only in effects.

cline

and construction
47%

reasons or causes.

For

from Adams & Peck.

the

in the fields of manufac¬

mining,

in

when the market

New York City.)

deposits classified, those of

concerns

tude of the increase in deposits in

of

outside

good news will
either bad news

on

interesting possi¬
bilities, according to a circular
being distributed by Adams &
Peck, 63 Wall Street, New York
City.
Copies of this circular dis¬
cussing the situation in some de¬
tail may be had upon request

individuals, partnerships, and

corporations

confirmed the in¬
by reports re¬
ceived from banks outside NeW
York City.
The relative magni¬
and March, 1943
dications given

can

history.

now

news.

The

quarter of the demand deposits

a

increase in their

character of the

you

statement

terested

or

Railroad offers

the

over
this period. (The group of
banks covered accounted for over

"Reports from four large New
York City banks concerning the

it

and making new
highs almost
The latter, prob¬
any more than panic stricken
on the assumption that daily this column warned that mobs listen to reason.
When
the end to the whole
the news is too good and too
cycle
suport appears and the mar¬
was close.
This was not an
rich for it's blood.
ket recognizes it ; I shall rec¬
easy statement to make for
ommend re-entry. Until then
It seems almost a heresy to not only was optimism riding I
advise standing by with
high but the Dow averages
your hands in your pockets.
were
Situation Attractive
confirming the presence
i*;;;

cooperating group of
banks outside New York City in¬
creased about $196,000,000, or 51%

#■

axiomatic

intensification

an

good
ably

deposits of individuals,
partnerships,
and
corporations

showing in the case

almost

market which can't

a

down

go

City

the

be

won't go up on

"Total

the. local

bad for

was

How

*

counted for

As

.

as

on

■-

would

only 1% of the total
received, but of New York
increase in reporting banks out¬
City banks generally.
Published
data for 16 weekly reporting New side New York City, and showed
York City member banks showed an actual reduction in the City.".
The Bank also presented the;
an increase of only 7 %
in their
'adjusted' demand deposits during following as to the showing out¬
all of 1942, but an increase Of side the City:
about 20% during the first quarter
Banks Outside New York

of

There is

ing

against the
enough in advance to avoid
By WALTER WHYTE
something for some¬ serious losses and
sleepless
If axioms could be applied body else to worry about.
This column is not interested nights.
**
*
to this business of
trading it

somewhat

of 1943."

war

one

potential strength

other is

interesting feature of the
situation in New York City is that larger percentages of the increase
most of the increase in deposits in all deposits than in New York
Insurance
cdmpany
de¬
of individuals, partnerships, and City.
corporations during the 15 month posits in each case accounted for
about 15% of the total increase.
period occurred during the first
quarter of 1943. That appears to Large personal deposits and ac¬
have been true not only of the counts of nonprofit associations,
churches, etc., each ac¬
banks from which these reports clubs,
were

Be that

war.

was

may, all of us recall the ponti¬
fical statements to the effect

„

suggest sidelines.

utilities

wholesale

accounted

nesses

"An

o

lied by market action of last
somewhat greater in few
days. Nearby support that
City than
outside, still some distance away. So ness.

than in the remainder of the dis¬

trict

to

end of this

Warnings

The relative magni¬

tude of the increase in

deposits in1^
considerably less cerns

due

Says—

turn

into actual weakness."

no
point in harp¬
this.
What has hap*
the beginning of the
pened in the last few days is

claim this market debacle

bank deposits which occurred between December, 1941 and March,
1943, covering a limited number of the larger member banks, especially
member banks outside New York City where the most marked per¬

will

Yet that is the
way the mar¬
ket interprets it.' Some circles

Walter

The Research Department of the Federal Reserve Bank of New
York recently made a survey of the distribution of the increase in

centage increases in deposits have taken place.

the fall from grace of the
'Sawdust Ceasar">,bad news.

Tomorrow's Mark

Survey of Distribution Of Bank Deposits

decline.

such

tioned

16-17

♦

impending

an

Last

about

week

I

It

men¬

is

market

possible that the
may firm long enough

They
Armstrong Cork, Beth¬ so that none of the above
of funds for investment during the
of individuals, partnerships,, and
possibilities according to special lehem
Steel, Borg Warner, mentioned stocks will get as
corporations was in the accounts Second War Loan campaign/'
letter being distributed by Ray¬
low as the prices now show.
Commercial
'nonfinancial' businesses.
The
Solvents,
Na¬
The; following
table
shows mond & Co., 148 State Street,
But if that is the case I'm
the distribution Boston, Mass.
Copies of this let¬ tional Cash Register and Yel¬
subsequent
ter may be had from the firm low Coach.
I said all these afraid that the
deposit balances of manufactur- of classified deposits between De- uport request.
looked higher but to "live up decline will be greater than
The

posits reflected the accumulation

outlook

zation

ing, mining, and construction con-

bonds

for

rail

reorgani¬
interesting

offers

cember, 1941, and March, 1943:

GROWTH IN DEMAND DEPOSITS OP INDIVIDUALS.

to their

PARTNERSHIPS, AND CORPORATIONS BY TYPE OP OWNER

New York City Banks

Banks outside New York

.

•

\' December

•
„

•

"i94i

.

Financial business-rInsurance

.

companies

Investment trusts &

,

4

%

increase

1943

,

%

increase
in

December

March

.

increase

of total

increase
in

1943

1941

deposits

investment companies

446,469

52.3

69,254

61,447

—11.3

—

47,946

—16.0

—

15.5

24,367

54,524

0.8

1,805

1,209

—33.0

57,097
31,435

10,Til

69,062

521,627

657,245

26.0

13.7

1.105,048
429,103

1,687,731
451,927
230,541

52.7

15.3
—

0.3

Established

*

'

,

All

—

—

Total.

Nonprofit associations, clubs, churches, etc..
personal —_—-----—
Total classified

0.9

2,354

2,159

9,519

10,827

0.2

6,065

5,594

44,110

74,313

68.5

York

Stock

Exchange

59.0

116,395

208,035

78.7

46.4

New

York

Curb

Exchange

5.3

2.3

34,639

561.321

62.6

11.0

New

Cotton

5.2

43,302

55.1

7.8
2.1

*

deposits of

.

—

8.3

—

13.7
—

7.8

0.1

the third
classified.

Members

136,731

169,970
2,540,169

37.3

69,457

42,664

—38.6

24.3 V

3.4

—

10,276

14,318

39.3

69.9

189,237

321,976

70.1

2.7

7,202

10,044

39.5

York

Commodity
Chicago
New

212,091

7 200,235

25,519

29.7

79.7

263,925

431,852

63.6

'

•




iThe

views
do

not

coincide

Whyte

expressed

in this

necessarily

at any

those

of the

with

They are presented as

onlyJ

12.7

20.3

121,834

150,580

23.6

14.6

4,227,825

5,215,082

23.3

100.0

Cotton

of

LAMBORN & CO.
99

WALL STREET

NEW YORK 5, N. V.

Trade

Exchange

Exchanges

85.4

1,774,769

Board

other

Inc.

9.2

3,440,313

Orleans
And,

1.4

Exchange,

—

5.6

23,376

:

SUGAR
N.

Y.

Cotton

NEW

part¬
385,759

582,432

51.0

Exchange Bldg.

YORK

4, N.

Exports—Imports—Futures

Y.

100.0
DETROIT

PITTSBURGH

York City
'

Thursday.
-—Walter

H. Hentz & Co.

0.2

banks, all accounts over $250,000 in one bank, those over $100,000 in the second bank, and all accounts in
bank; in banks outside New York City, all. accounts over $10,000 except for one bank where accounts over $25,000 were

New

■1

0.7
—

CHICAGO
In

■

Exchange

27,927

—

1,574,638

deposits—

individuals,
nerships and corporations
demand

.

*

15.4

2.4

2,653,187

deposits*

Total unclassified
Total

179,130

* ;■

those of the author

0.1;

2.8
—

1,850,012

2".

other

1856

28.7

32,321

Nonfinancial business-

Manufacturing, mining and construction._
Pub. util., transp. and communications^—
Retail & whole, trade & deal'rs in commod.

*

More next

Chronicle.

New

*,

indicated.

article

deposits

123.8

All other
Total

now

time
293,070

Trust'funds of banks

•

distribution

of total

Security brokers and dealers.—
-

Dollar amount

'

—

—

March

-

Percentage

distribution

promises they must at

gains.
Any slackening to what mili¬
tary communiques call pre¬
viously
prepared
positions

City

Percentage
Dollar amount

group.

least hold last week's

(Dollar figures in thousands)

1

a

were

GENEVA,

Av-..

«

SWITZERLAND

DIgby 4-2727

VIRGINIA

commissions

With many bridge

experiencing difficulties in meet¬
ing their obligations, due to tire
and gasoline rationing, the State
Bridge Commission of Ohio an¬
nounced today that it will meet in
full and

time all bonds matur¬

on

ing and interest due this year.
report to Governor John W.

A

by Ray Palmer, Secre¬

Bricker

of the Bridge
Commission, covering the first
six months of 1943, shows that
the Commission already has in
its various bridge sinking funds
sufficient balances to meet the
bonds and interest due in 1943
on three of its four bridges. The
fourth bridge is expected to be
in a similar position by Oct. 1
when the bonds are due.

tary-Treasurer

Bonds to be retired Oct. 1

Bridge, $125,000;
Liverpool-Chester
Bridge,

East

$125,000;
Steubenville - Weirton
Bridge, $90,000. The Commission
also expects to pay off $40,000 of
Pomeroy-Mason
Bridge
Bonds,
which are not due until 1956.

balances
of
these bridges on July 15 were:
Sandusky Bay Bridge,
$188,293.80;
Steubenyille - Weirton
Bridge, $145,523.74; East Liver¬
pool - Chester
Bridge, $117,734.15; Pomeroy-Mason Bridge,
fund

Sinking

fund for

Liverpool-Chester Bridge Tax Re¬
serve Fund was $14,548.87.
This

meet 1943 obliga¬

will carry over into

but

tions,

to help pay
the bonds and interest due next
1944 good balances

year.

Commission

the

shown,

balances

the favorable

to

addition

"In

backlog in the Appropria¬
tion Act for the 1943-1944 biena

Act

Appropriation

The

nium.

legislative authority
for
the Bridge Commission

gives

to

loans

Board of

by the State Emergency

$25,000 in 1943, and $125,000 in
1944, for debt service in case of an

Such a contingency
much more remote now

emergency.
appears

legislature

when the

did

it

than

but the backlog is

in session,

Municipalities Of 19 States

Pomeroy-Mason

April and the anticipated Oct. 1
retirement will make $88,000 for

Beane for

000 in West Virginia's

valuation

of the Commission's three Ohio

Farlane

bridges, and a reduction

River

of

last

$290,000

valuation
of

will

annually

$11,000

nearly

About 80%

taxes.
River

bridges

savings

a

mean

the

in

year

are

in

of the Ohio
inside the

funds

which

ordinance

by

their

specifies

with

use,

no

tax
levied for the purpose; Con¬
necticut cities may use surplus
limit

the

on

funds

of

amount

build up a reserve,

to

to

was

Government

Rubber

sota cities may levy taxes, also,

of reserve funds.

for support

setting

funds

reserve

up

Chicago.

CHICAGO^

111.—Lawrence
J.
Lindsay, for many years with C.
W.
McNear
&
Company,
has
joined the staff of Harriman Rip¬

for

Higher

utility management in 20 munici¬

palities.

4.10% to $38,of

West Virginia border.

is

Following

showing

the

various

of

bridge, sinking funds and the re¬
lation of each sinking fund to Oct.
1, 1943 debt-service requirements:

145,523

97,393

+48,129

Bridge *31,618

4,060

+27,558

East Liverpool-

139,875
$22,140
*$48,000 Pomeroy-Mason bonds were re¬
tired April 1, 1943,
tOver. $Short.

i.

Chester i—.u

117,734

nor

covering letter to Gover¬

a

John W.

Bricker, which ac¬

companied the complete detailed
of the bridge operations

Jesuits

for the six months ended June 30,

limit

no

reserve

procedure,
up

may

set

to 5% of its total tax

fiscal

the

if there is
it

year

a

may

be

made up out of the tax stabili¬
zation

fund; if there is a sur¬

plus, the fund remains intact.
The New Hampshire postwar
law is

municipalities

to set aside funds for future

tal

capi¬

though

improvements,

may be exercised only
majority vote of the legal
present at the annual or

voters

have in their
sinking funds more than enough
to pay Oct. 1, 1943 obligations.
The
fourth
bridge — the
East

fund after July, 1945.
Besides Florida, Maine and New

already

bridges

special town meeting. No

may

be appropriated

plus

money

nor any sur¬

transferred

money

to

$16,771,-

Chanute

and Kansas City, Kan.,

heads

partment
the

in

mayor

by de¬

appointed

the

first

by

and

by

five-man board of public util¬

a

ities

elected

in

by the people

second.

the

Fourteen of the cities

have all

cluded

to

en¬

tional

linquent

taxes

in¬

sources

revenue

collection of

rise in

a

$1,579,148,

to

to

the

department while
superintendent
in
charge of each utility according
have

re-

tire 1942 year.

de¬
or

83.11% of estimated collections of

information

to

the

Interna¬

City Managers Association.

Auxiliary services of purchas¬
ing, financial records, recruitment
and personnel matters are handled
by a central office for all city de¬
including the

partments

utilities

from this source for in more than one-half of the 20
full, compared witji col¬ cities reporting. In general, cities
lections of $1,330,864 in delinquent in which auxiliary services are
taxes the first six months of 1942, provided
by the utility depart¬
which represented 57.86% of the ment instead of by a central city
$2,300,000 which the city expected office are those with, a separate
to collect in the entire 1942 year. board as in the case of Albany,
$1,900,000
1943

in

N. Y., Hannibal, Mo.,

Kansas City,
Kan., and Knoxville, Tenn.

California Municipal
Bond Prices At New

the

authority
a

amounted

61.55% of estimated
cteipts of $27,250,503 for the
or

Maine's

similar to

in that it authorizes

of 1942,

Other

city

a

735

v

stabilization

Thereafter,

levy.

existence

on

funds!
tax

the

surplus

deficit in the budget at the end

a

cities,

sion-governed

income

aside

by

the commis¬

Mo., and in

acquisition of capital improve¬
by direct appropriation or

Secretary-Treasurer
Ray
Palmer, stated in part as follows:
"The foregoing table shows that
three of the four State operated
1943,

nibal

a

reserve

In

and

board of public works ap¬

a

one

of

Weirton

Mason

:

com¬

Mo.,

pointed by the Mayor in Han¬

in

source

mayor-

utilities

council

a

Columbia,

six

fund

Pomeroy-

by

in

utilities in

of such

Bonds &

this

operated by

mittee

two

the

cities included,

In the first six

funds, with

Bteubenville•

council
are

and

manager

In

real estate tax

the

for

transfer of unencumbered

:

from

the

the entire year.

Under

Sink-

cities

the control
in three
has limited

under

manager,

months

The latter may be

fund.

ments

Bal. in

ing Fund Int. Due
Over or
Bridge
July 15, '43 Oct. 1, '43 Short
Bandusky Bay
Bridge
__$188,293
$132,810 t$55,483

to "collect

the

control.

$26,218,048 that the city expects

cash

Prices

of

Highs

California

municipal

continue to advance, new
highs having been registered for

bonds

fifth

the

consecutive

week,

ac¬

cording to the index compiled by
the

William

which

stood,

R.

Staats

Company

July

on

23,

at

Nearly all cities covered in this
study supply some utility services
outside city limits, but there is
no
set pattern or policy and the
revenue
received generally is a
small percentage

association
there

tions

a

of the total, the
reports.
Neither is

set pattern

which

for contribu¬
make

utilities

to

these surplus

yield of
municipal general funds.
2.15%.
A week earlier the price
For
Hampshire, States enacting legis¬ was 137.954, the yield unchanged.
example,
Albany,
Ga.,
lation this year allowing munici¬
The index now is comparable to Ames, la., Austin, Tex., Chanute,
palities to establish cash reserve the all-time
high of 2.14% which Kan., Hamilton,. O., Hannibal, Mo.,
funds include Arizona, Connecti¬
was established in the latter
part Long Beach and Pasadena, Cal.,
cut, North Carolina, North Da¬ of
1941, just a few weeks before provide free water to other city
kota,
Minnesota,
Pennsylvania Pearl Harbor. Most of the issues departments. In 15 cities the util¬
and
Rhode
Island.
The
nine used
ities make regular annual contri¬
in the compilation of this
states
butions to the general fund or pay
enacting such legislation index are now
selling at prices in
the city an amount equal to taxes
previous to 1943 were Oregon, excess of their
preceding highs,
that
would be paid if utilities
California, Nebraska, New York, while a few are
slightly under
were privately owhed, and a few
Michigan, Washington, Kentucky,
preceding peaks.
New Jersey and Massachusetts;
cities do both.
three of these
Michigan, New
Most
officials
in reporting
Twenty Cities Report On
Jersey and Oregon — broadened
cities believe operation of city-

of

their

Liverpool-Chester
Bridge — is
primarily a tourist bridge, but at
this time is only $22,140.85 short
of its Oct. 1 requirements.
the

"In

■

of

Funds

large

Special
Tax

the

and

Funds

four

all

excesses

—

Reserve
Reserve

bridges

are

balances be¬

yond requirements—which may
be

for

used

debt

service in an

We call attention to
funds in the case
East Liverpool-Chester

emergency.

the

Bridge
only

one

may

ever

"The
?

..•••

•

it is the
of our bridges which
need them.

only,

June

because

30

balance

in

the

.

Special Reserve Fund of the East

Liverpool-Chester

Bridge




was

138.108, equivalent to

a

—

Utility Management

this year.

statutes

How

Broadest of the laws allowing

cities
are

to

set

those

up

of

reserve

California,

funds
Con¬

necticut, Maine, Minnesota, New
York

and

Washington.

fornia cities,

tute,

may

under

set

up

a

Cali¬

1937 sta¬

cash

reserve

owned

utilities should

utilities

are

with

grated

organized and serviced, the extent

services

of services outside

two

ways

to

city limits and

in which utilities contribute

municipal general funds

been

be mte-

"

city-owned

determined

by

a

have

study

of

Dexter Horton Building. Mr.

Wm,
prior

thereto

with Dagg & Co., Inc.

was

past he was with the Seattle
Trust & Savings Bank.

In the

President Hails
The

House

White

Belgians J
made

public

July 22 a message which Pres¬
ident Roosevelt sent to Prime
Minister Hubert Pierlot of the
on

Government-in-exile iri
London, on the occasion of Bel¬
gium's national holiday.
The President expressed admir¬
ation for the suffering Belgians
and confMence ih early liberation^
The message follows:
"On" this anniversary of your
country's national independence
the people of the United States
wish to renew the expressions of
their friendship and admiration
lor the people of Belgium.
The
suffering which they have en¬
Belgian

,

directly

of

construction

reserve

or

fund

The city-owned utilities in 13
the
council-manager cities

are

of collec¬

ratio of 64.82%

reserve

the

to

established

table

a

condition

the

a

associated

become

MacLeod was formerly with
D. Perkins Co., Inc. and

.

503,311 for the first six months of

B.

Wash.—Edgar

has

MacLeod

years

postwar

stabilization

(Special to The Financial Chronicle)

pany,
to The Financial Chronicle)

(Special

(Special to The Financial Chronicle)
by charter amend¬
ment, an action authorized under
KANSAS CITY,
Mo.—Charles
home rule provisions of the states, Collins is now with Goffe & Carthe association pointed out.
kener, Inc., Board of Trade Build¬
ing.

several

Building.

SEATTLE,

Municipalities in several States, ley & Co., Incorporated, 135 South
including Wisconsin, have been La Salle Street.

with

addition

man

with Earl F. Townsend and Com¬

can

of Baltimore rose

local

tax

in

Reserve

Chapv

of J. Arthur Warner & Co.,

with the U. S.

Recently he

Chronicle)

PORTLAND, Maine.—Frank IL
Miller has been added to the staff

in the past with Shearson, Hammill & Co. for a number of years.

governmental units
tions to estimates of a 1942 col¬
legal authority to lay
lection totaling $57,067,680.
the future.
Real estate tax collections ag¬
Maine's legislation is unusual,
the American Municipal Associa¬
gregated $19,030,567 in the first
half of 1943, or 72.59% of the
tion said, in that it provides for

in

Mr. McFarlane was

or

make special levies up
2 mills on the dollar; Minne¬

they

South La

209

Co.,

was

of the Lawrence" off ice of
Estes, Snyder & Co;
(Special to The Financial

with

affiliated

now

&

Salle Street.

aside money for

a

is

Cruttenden

have

now

number of years.

CHICAGO, 111 —Gordon D. Mc-

Teletype: RH 83 & 84

Municipalities

whose

a

Calvin

Mr.

Topeka,
formerly

manager

(Special to The Financial Chronicle)

RICHMOND, VIRGINIA

Bell System

this year, from collections of $36,of three more
989,224 in the comparable 1942
the year.
states—Florida, Maine and New
a
report received from
In addition to the large sinking Hampshire—were given authority period,
Herbert Fallin, budget director,
fund balances, the report shows
by their State legislatures recent¬
balances far in excess of requir- ly to build up cash reserve funds showed.
Collections for the first half
ments in the Special Maintenance for
public works
construction
Reserve Funds and the Tax Re¬ after the war.
This action, added represented 67.76% of the $56,serve Funds.
These surplus funds to similar steps taken by seven 820,981 which the city had esti¬
mated it would obtain in 1943
may also be used for bond re¬
States earlier this year, brings to
from tax sources, and compared
tirement.
19
the total number of
States
Reductions this year of $300,-

Lynch, Pierce, Fenner &

117

Inc.,

Company,

&

Kans.

CRAIGIE&CO.

Revenue collections of the City

Post-War Reserves

Seltsam

West Seventeenth Street,

Baltimore, M<L, Tax

there if needed."

$48,Permitted To Establish
bonds
in

The Commission paid off

Calvin has become connected with

Ohio.
Mr.
Thatcher
formerly local manager for

Merrill

Telephone 8-9137

will not only

associated

become

was

all bridges

that

clear

is

LAWRENCE, Kans.—Clifton C.

Cleveland,

-F. W."

vice.
"It

has

Chronicle)

U.

Ohio—Edward

with Otis & Co., Terminal Tower,

MUNICIPAL BONDS

represents an excess of $8,874.37,
available for debt ser¬

was

Thatcher

CAROLINA

which is

has

CANTON,

to The Financial

(Special

(Special to The Financial Chronicle)

NORTH and SOUTH

approval of the consulting engin¬
eers.
This fund increases $1,500
monthly. '
"The June 30 balance in the East

"•" V

If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.

on

VIRGINIA—WEST VIRGINIA

Revenues

$31,618.88.
000

as a reserve

special maintenance, and most of
this
$32,191.70 balance may be
used for debt service by resolution
of the Commission and with the

are:

Bay

Sandusky

well

as

Wire Bids

This is a contingent

$32,191.70.
fund

Broker-Dealer Personnel Items

Notes

Municipal News

Thursday, July 29, 1943,

FINANCIAL CHRONICLE

THE COMMERCIAL &

420

or

and

other
that

municipal

grouping

three utilities in one

of
de¬

directed by a com¬
petent superintendent results in
special economies from the use
partment

nf

f>pntral

aiixiliarv

services.

dured for

than three years

more

Nazi

under
awe

and

inspires
in the world

occupation

humility

still free.
(

"There is likewise appreciation
of the/ resources of the Belgian

Congo, which have, been pooled in
the common struggle.
I take this

opportunity to extend to Your Ex¬
cellency and to the members of
your Government my best per¬
sonal wishes, and to express my
confidence in the early liberation
of your
In

a

.

country."
radio

address directed at

occupied Belgium, Prime Minister
Pierlot said

tory is
sented

on

July 21 that "vic¬

the march," and pre¬
plan for liberating Bel¬

on
a

gians after the arrival of Allied
armies.

These liberation steps,

he said,

according to Associated Press ad¬
vices from London, would be
taken, accompanied by Belgian
military civil missions to act as
intermediaries:
"Food

supplies will be distrib¬

uted with the arrival of the

arm¬

ies; contact will be made with Bel¬

reproach from the
of view,'
with

gians /above
national

sidetracked

others
the

point

government

be

liberated

trans¬

ferred

to

soon as

possible to maintain order;

food

the

arrested;

or

will

zone

supply services,of the

will

co-ordinated

be

agencies

tributing

as

army

with

dis¬

existing

in

Belgium.
"Public administrations will be

cleaned of; traitors and collabora¬
tors with

ishment

'swift, exemplary

for

all

pun¬

who have given

criminal help to the enemy'; the

King, now 'a. prisoner among his

people,' will again exercise consti¬
tutional
meet

powers;

parliament

will

again; the government will

submit for approval reports to the

King
taken

and parliament
since

the

actions

on

occupation,

ministers will submit

and

resignations

to facilitate formation of the new

government, including in it
who

tion."

lived

through
■..

the
.

men

occupa¬
•

•

*.

j

[Volume 158

Named
In

an

^Number.4W8r"

Alaska Highway
exchange

of

notes

be¬

tween the United States and Can¬

^
Government

THE COMMERCIAL & FINANCIAL CHRONICLE

'concurs in

the pro¬

Heretofore,

posal.'

has been

the
project
known generally but un¬

he

held

part
also

i

of

for

his

served

eight years.
During
service in Cairo he
as

Minister

to

officially as 'the Alcan High¬ Arabia. Mr. Fish went to Lisbon
an agreement was announced
from Cairo, presenting his creden¬
way.' "
Washington on July 22 on
Plans for the change in the tials as Minister to Portugal to
"Alaska Highway" as the official
name were noted in our July 1
President Carmona on March 26,
name for the highway from Daw¬
1941. He was Chairman of the del¬
son
Creek to Fairbanks, Alaska. issue, page 33.
egation to the Capitulations Con¬
Associated Press' advices from
ference, held in April and May,
[Washington July 22 said:
Bert Fish Dies
1937, in Montreaux, Switzerland.
"Secretary of State Hull pro¬
Bert Fish, United States Min¬
posed the name as 'suitable and
in harmony with popular usage,' ister to Portugal since February,
Thanks Idaho Farmers
at the suggestion of Anthony J. 1941, died on July 21 in Lisbon.
Lord Halifax, British Ambas¬
Mr. Fish
Dimond, Alaskan Delegate in the He was 67 years old.
sador to the United States, on July
House of Representatives. Leigh- had been in the diplomatic serv¬
ton McCarthy, Canadian Minister ice since 1933, when he* was ap¬ 17 thanked the farmers of Idaho
to Washington, replied that his pointed Minister to Egypt, a post for
producing food for the United
in

...

-

•

Nations and urged them to greater
efforts.

*

-

DIVIDEND

421

NOTICES

.

Saudi

ada,

- ;•

'

The

Ambassador, who is touring

*7\

the West, stopped off in the rural

country of Boise Valley
17 to

on

talk with farmers.

In

Associated

Press

inconponat to

July

I

:

Boise

111

Fifth

the

United

States,

Common Dividend

152nd

working

K regular dividend of Seventy-five Cents

The American Tobacco

after the war.

able in cash

(750)

«,,

what

we

share has been declared

per

Common

"We're in this job (the war) to¬
gether and must try to work to¬
save

City
•;

•v.'/

together and "on terms of com¬
plete equality with China and
Russia," would build a new world

gether to

York

New

ad¬

vices, the following was reported:
He predicted that Great Britain
and

Avenue

Stock

and

Common

the

upon

Stock

B

Company,

of

pay¬

September 1, 1943, to stock¬

on

holders of, record at the close of business'

August

1943. Checks will be mailed.

10,

win," he

Edmund A.

Harvey, Treasurer

said.
Inly 28, 1943

'

■

:

■

Tdot
COMMON DIVIDEND

No. 134
An

dividend of

interim

(300)

thirty

cents

share has been declared

per

on

the outstanding common stock of this

Company, payable September 1, 1943,
stockholders of record at the close
of business August 14, 1943, Checks
will be mailed.

to

The

Borden
E. L.

ANACONDA

COPPER
25

Company,

NOETZEL, Treasurer

MINING

The

DIVIDEND

Board

of

CO.

Broadway

New York 4, N, Y.,
■

July 22, 1943.

141

No.

Directors

of

,

the

Anaconda

Copper

Mining Company has declared a divi¬
dend of Fifty Cents (50c) per share upon its
Capital
Stock of
the
par
value of $50. per
share, payable September 27, 1943, to holders
of

such

shares

at

ness

3

St.

of

record

o'clock,

JAS.

P.M.,

DICKSON,

Louis,

Rocky

Raton,

New

Common

the

at

Mountain

Mexico,

Stock

close

of

busi¬

on September 7,
1943.
Secretary & Treasurer

Pacific

&

July

23,

Dividend

Co.'

1943.

No.

86.

.

The
of

above company has declared a dividend
$1.00 per share on the Common Stock of the
stockholders of record at the close

company to
of business

1943.
,

J/.V

July

Transfer

24,

payable

1943,

books

'will

be

not

August

10,

closed.

';>:f:v;,:y V'P. L. BONNYMAN,- Treasurers

UNITED
:

■

At

CORPORATION'

GAS

''

'

$7 Preferred Stock Dividend

>

meeting of the Board of Directors of
United Gas Corporation held July 28,
1943, a
dividend of $3.50 per share was declared on the
$7 Preferred Stock of the Corporation for pay¬
ment
September
1,
1943,
to stockholders
of
record at the close of business August 6,
1943.
a

H.

E.

DIXON,

Treasurer.

FINANCIAL NOTICE

VALLEY

MIDLAND
Interest Payable
ADJUSTMENT

September

that

rof%01"

isn't enough these
War

Bond

"A"

.

AND

BONDS
Philadelphia, Pa.
July 22, 1943

*'.,

:

of Directors has ascertained, de¬
termined, and declared that for the year ended.
June 30, 1943, 4% is payable on the Series "A'l
Adjustment Mortgage Bonds and 4% is pay¬
able on the Series
"B"Adjustment Mortgage
Bonds, under the terms of the Plan of Debt
Adjustment, dated January 11, 1943, as amended
March 31,
1943.
On and after September 1, 1943, the FidelityPhiladelphia Trust Company, Philadelphia, Pa.;
will
pay
the following amounts for coupons
surrendered:
'
Series "A" Bonds—Coupon No. 27—$40.
on
$1,000 Bonds and $20. on $500.
The

Knows

ly 1943 on

SERIES

MORTGAGE

;

...

RAIL¬

COMPANY

ROAD

Board

Bonds.

Series
on

Bonds—Coupon No. 23—$40,

"B"

$1,000 Bonds

$20.

and

on

$500.

Bonds.

Workers'
Income

X

Living Costs going up
and
and Victory Tax now deducted

at source

for thousands of workers...

Check! You're
all these burdens

perfectly right",
are more

*.

but

than balanced

by much higher FAMILY INCOMES for
most

ofyour workers!

Millions of
the

new

workers have entered

picture. Millions of

never

women

>1' That's

who

worked before, Millions of others

who

never
began to
getting today!

earn

109$

Pay-Roll Allotment for War
Bonds from the wages of the family
bread-winner is one thing—a 10% PayRoll Allotment from each of several workers
in the same family is quite another matter!
Why, in many such cases, it could well
be jacked up to 30%—5096 or even more
pf.the family's new money!

...

why the Treasury Department

revise your War Bond
| thinking—your War Bond selling—on.
the basis of family incomes. The current
'now

what they are

urges you to

C.* JAR ED INGrRSOLL,

War Bond

campaign is built around the
family unit—and labor-management sales
programs should be revised accordingly.
For details get

in touch with your local
Savings Staff which will supply you
with all necessary material for the
proper
presentation of the new plan.
War

CHAIRMAN

Last

year's bonds got us started—//&#
bonds are to win! So let's all raise
our
sights, and get going. If we all pull
together, we'll put it over with a bang!

Knox Aide

of the

Navy Frank

Secretary
Knox

announced

acceptance

Bullitt

his special

as

post he has held

a

over

a

has

America's all-out

THE

war

effort

COMMERCIAL

FINANCIAL




for

ation

This space is a contribution to

you've done your bit

by

...

AND

now

do your

Mr.

Russia and

announced his can¬

Mayor of

Bullitt

has

the

been

?V

AT

★

★

★

★

★

★

★

★

agencies in liberated
also

Ad No. 1013

Navy

interdepartmental£ committee on
"co-ordination of the economic

best!

activities of United States

★

nomin¬

Philadelphia.

Department's representative on an

CHRONICLE

★

a

Mr. Bullitt,

year.

former Ambassador to

France,

of

of the resignation

C.

assistant,
little

July 23 the

on

didacy for the Democratic
<

BOARD.

Bullitt Quits As

William

years

THE

OF

was

another
mittee

the Navy's

civilian

areas."

He

member of

interdepartmental

com¬

assigned to a study of oil

reserves

throughout the

"l

Ji

THE COMMERCIAL & FINANCIAL CHRONICLE

422

Calendar of New Security Flotations:
OFFERINGS

;

V'

\

CELOTEX CORPORATION
Celotex

t

tration

3%%

for

South

Yv

7" 7

regis¬

a

1955.

1,

Street,

Chicago.
.
1 ,f,
Business—Engaged in the building ma¬
terial business, principal products it sells
being rigid insulation, acoustical, gypsum,
roofing and hardboard products.
' ■,'))YY
i
Underwriting—Paul
H.
Davis
&
Co.,
,

Chicago,

is

outstanding 10year 4(4%
debentures, due Feb. 1, 1947.
u
Registration Statement No. 2-5180. Form
to

the

redeem

S-l.

filed

'

with

the

'

Commission

gives
its

on

year 3%%
debentures at
crued interest from July

100(4 plus ac-j:
1, 1943, to date

delivery.7::Y77;

of

agreed

have

and

purchase

to

Paul H.

follows:

7'

underwriters

of

Names

they
as

and

Securities'

>

*.

*

registration

on July 22, Celotex
the offering price to the pub-;
proposed issue of $3,000,000 12-

Exchange
Corp.

it
(■:
to
its

amendment

an

statement

lie

company's

(7-13-43).

In

Davis

SOUTH CAROLINA ELECTRIC

amounts

stated

are

Co., Chicago,

&

Electric

Carolina

South

GAS CO.

&

Gas

&

Becker

G.

A.

Main

Address—328

Columbia,

Street,

Following is

Business—Is

utility

public

a

operating

(7-22-43),

A-2,

offered for
Names of
by amend¬

Underwriting—Bonds will be
at

sale

bidding.
be supplied

competitive
will

underwriters

ment;

...

v

the

redemption
first

Co.

102%77 of

at

face

the

$8,361,500 of Broad River Power
and
mortgage
gold
refunding

amount of

bonds, series A, due Sept. 1, 1954; to the
redemption at 105 of the face amount of
$1,359,000

of Parr Shoals

mortgage

5%

sinking

Power

April

1,

Registration Statement No. 2-5162. Form
A-2. (6-25-43).

associates.

of

sale

cleaners.

vacuum

Metallurgical Corp.

registration
of

plied
CORP.

statement

for

stock, without

common

,

value. 77

[ 1 Address-1—North Chicago, 111.
Business—Business

its

subsidiaries

ment

the

of

consists

refinement

and

of

publicly

at

metals

and

the

production and fabrication of
rare
compounds, alloys and commercial
products.
Underwriting — Hallgarten
&
Co.
is
metal

.

named

be
'

principal

by

be

sale

stock

from

proceeds

will

added

be

to

work¬

the

ing

capital of the company and will be
used for general corporate purposes.
Fiv»
dollars per share of the net proceeds will
he

allocated

to

and

capital

the

balance

■will be allocated to capital surplus.

Registration Statement No. 2-5179. Form

Wm.

Cavalier,

of San

of

SQUARE

F.

San

Gill,

Frank

and

Cronise,

E.

Benedict

Ray¬

Fleisher,

all

Company

Square Co.
!
Address—-Room

Market Street,

582

Francisco.'

5,

becomes

1943.

a

effective

4%%

at

new

Registration Statement No. 2-5182. Form
(7-16-43).

of

any
stock

of

&

registra¬

shares

27,500

of

com¬

value $10 per share.
The
shares are already issued and outstanding.
Address—11th and F Streets,
N. W.,
Washington, D. C.
Business—Owns and operates a depart¬
stock,

mon

ment

par

Voting

Beane,

Merrill

trust

Fenner

D.

C.

registered

shares

the

of

The

Loan

Trust

&

estate

of

proceeds will

Co.

as

stock

under

trust agreement.
Registration Statement No. 5181. Form
F-l. (7-14-43). Original filed in San Fran¬

voting

The

does

Wood¬

Donald

securities

Woodward

of

the sellers are listed as follows:
39,899 shares of common, par
$10,
and
2,333 shares of preferred stock, 7% cumu¬
lative, par $100 per share.
Of said se¬
curities only

under

offered

cisco.

27,500 shares of common

registration

statement.

WEDNESDAY, AUG. 4
UNITED

DRUG

United

statement

WALTER

has

filed a
$20,000,000

Company

Drug

istration

TUESDAY, AUG. 10

COMPANY

for

reg¬

15-

sinking fund debentures due 1958 and
100,000
shares
of
cumulative preferred
stock, par value $100 per share.
Interest
year

rate

on

debentures

and

dividend

rate

Walter

E.

HELLER

E.

Heller

each

due
year

on

preferred stock will be supplied by amend¬
ment.
■ ■
7'
■'

follows:

2%%;

&

Co.

for

has filed

a

$3,000,000

reg¬

serial

maturities

on

are

given

2%%;" 1950, 2%%;
27/8%, and 1953, 3%.

1949,

1952,

as

1951,

—

43-63

Leon

-

Street,

Business—Principal businesses
and its subsidiaries

two-fold:

of

and secondly the

retail

operation, by subsidiaries

be

supplied

by

ment.




Chi¬
1

Business—Engaged principally in financ¬

Underwriting — Smith,
Barney
&
Co.,
York, heads the group of underwrit¬
will

'

ing the sales and other current operations
manufacturers,
distributors,
dealers,
merchants
and others,
by purchasing or

drug stores.

Others

Street,

Adams

which

New
ers.

West
-

engaged
drugs,

in

are

Manufacture

pharmaceuticals, toilet articles, food and
chocolate
products,
rubber
articles
and
other products used in or sold by
drug
stores and
distribution of such products,
of

5

cago.

company
are

Address—105

Boston,

amend¬

of

making advances on their accounts,

notes,

other documents, also in
making direct loans or advances against
inventory,
machinery,
equipment,
real
estate or other assets,
and in otherwise
acceptances

lending
business

or

funds and giving
concerns.

financial aid to
..

of

sociation.

;

?

/■

i,-

■:

:.

.

filed

<7

.

vyyy-Y y yyy!•."* Y-y y.-Y ^ y

•>

the retirement of the com¬
outstanding
9,824
shares of $6
preferred stock
at $105 per
share will require $1,031,520.
All of the
$6 preferred stock has been called for re¬
demption on Sept. 15, 1943.
Balance of
net
proceeds, estimated at $243,000, will
be added to the company's working capital.
$1,275,000,

Registration Statement No. 2-5186. Form
S-L (7-24-43).

of

mined

for

statement

certificates

5,/2%

unknown

are

or

of

&

from

Address—Monroe

de¬

and

Avenue

Farmer

Detroit, Mich.

Street,

Business—Character of business done

by

department store and
business, at retail.
Underwriting—Company has engaged the
services of H. M. Preston & Co., Chicago,

original

issuer

is

loans

used

to

of

its

as

readjustment manager.

Offering—Call for deposit of bonds
der

un¬

plan of debenture adjustment.

of requesting deposits
is to ask depositors to consent to an ex¬
tension of the maturity date of the au¬
thorized
5Vz%
debentures from May
1,
Purpose—Purpose

to

1946,

31,

Oct.

fications

of

and various modi¬
See Registra¬

1952

indenture.

the

2-5176.

tion Statement No.

(7-5-43).

istration

7

v

refunding

has filed a registration

shares of preferred
stock, without par value. ';."7:'•'*!,:7'7-77'7
Address—1900 West Slauson Avenue, Los
for

26,000

77)7

Cal."

Angeles,

statement

and

debtedness

processing of milk, and the
business of buying
and ' selling
cottage
cheese, eggs and
various related products at wholesale and
retail in the States of Washington, Oregon
the

general
milk,

butter,

California.

) 7. 7
Underwriting—There are no underwrit¬
ers.
Company proposes through certain
of

its

ers

to

rants,
the

-

■

employees and through security deal¬
solicit

and

exercise

the

of

option

war¬

the company proposes to pay
of such employees In connec¬

expenses

with

tion

solicitation.

such

sold

If

all

to partial payment for
of Iowa-Nebraska Light
$1,000,000 and for other
corporate purposes.
7,
Registration Statement No. 2-5138. Form

amounts

to

be

Underwriters
with
purchased are given as

—

properties

Power

6

Co.,

\ 1

(5-12-43).

effective

such

7

•

,

-

16, 1943, to.Jfc*

filed. June
date.

METALES DE LA
Metales

"

VICTORIA, S.

7

A,

S. A. has filed

la Victoria,

de

a

statement for 1,000,000 com¬
mon
shares and production notes in the
aggregate sum of $500,000, lawful money
of the United States of America.
Address—405

Building,

brokers

to

dealers

and

for

their

own

ac¬

agents of the com¬
)V7- 77. ) .)•//
Offering—Offering
consists
of
50,000
units, a unit consisting of a production

counts

or

selling

as

)77/v) 77,;

note

the

in

shares

of

;

;

amount

face

stock,

common

of

and

$10

price

20

unit

per

$10, lawful money of the United States of

for

$1,245,600

National

under the laws of
Mexico on Oct. 23, 1942, for the purpose
of engaging in the business of acquiring,
exploring, developing and operating min¬
ing properties in Mexico, and the milling
and
marketing of ores and concentrates
therefrom.
)v;77 ■
Underwriting—Offering
will
be
made
direct to the public by the company, and
Business—Organized

(

...

Valley

Ariz.

Tucson,

5y2%

$996,500
as

4%

reg¬

a

extended

debentures

to
due

^

Proceeds—For development, purchase of
equipment, etc.
'
7
Registration Statement No. 2-515X. Form
S-3. (6-ll*r43).
*
"
'
,

.

Amendment filed

July 16, 1943, to defer

effective date.

and

Avenue

Farmer
NORTHERN

Business—-Department Stqre and general
at retail.
,

mercantile, business,

,

.

proposes
a
plan of
adjustment and a plan of cap¬
readjustment.
The 5'/2% de¬

Purpose—Company
debenture

stock

bentures
issued

as

to

extended

1952

are

to

filed

31,140
stock

basis

*'7

Avenue,

•

■

•

y.

Ham¬

utility operating

com¬

principally in the produc¬
manufacture, 7; purchase, 7 supply,
transmission, distribution and sale of elec¬
engaged

pany

tion,

,

trical

Cnercv.

and

gas

)x7),

water.

Underwriting—Company
bonds

stock under plan of capital stock readjust¬
ment. ■ 7
777;',t _7'V'7*7.;V:;,\??^VV))
Registration Statement No. 2-5176. Form
.

Ind.

amount of de¬

$40 face

(6-30-1943).

Hohman

Address—5265

bentures plus $10 in cash for one share of

S-l.

1,

V Business—Public'

$50; par prior preference

of

SERVICE

>

a

mond,

under

shares of
on

PUBLIC

registration statement for $45,000,mortgage bonds, Series C dated
1943, due Aug. 1," 1973.
Interest
rate'will be supplied by amendment.
<7 '7

5 Va %>

old

1946

'

first

Aug.

be

deposit to
sinking fund deben¬
plan of debenture
adjustment, extending maturity date and
modifying indenture .provisions.
The 4%
debentures will be issued in exchange for
of

due

tures

»

'

Northern Indiana Public Service Co. has
000

certificates of

through

holders

INDIANA

CO.
"

for

rule

ding

sale under

-

offer

the

competitive bid¬
Names

of

supplied by post-effec¬

amendment.

tive

■■]'...■ Y^Y'.;

the

will

of; the. Commission.;

underwriters will be

will reim¬
Hearing before SEC Aug.-2, 1943 to de¬
OfferinfY-Priceilto be supplied by postfor their out-of- termine whether
•
stop order should issue effective amendment.
-h ■
■■ _....
.
all such shares are
against the statement.)»
,Y'7''^YYYY, 7 Proceeds—Proceeds from sale of Series C
sold
the company will instead pay such:
bonds, exclusive of accrued interest, will be
dealers $l for. each share sold through the
FLORIDA POWER A LIGHT CO. 7 Y
applied,4 together
with
other ^necessary
exercise
of
warrants
Florida
Power
&
procured by stfch
Light Co. registered

burse

pocket

are

not

security

>

company

dealers
If

expenses.

•>'

dealer.; ••

•

V *•<

•

*''■

s

with

SEC

bonds,

being

Stock,

$100

Bonds

and

for

the

registered at the rate
2(4
shares held.

each

price

will

be

expiration

filed
of

by
the

of one share
Subscription

amendment.1 After
warrants

the

com¬

ing
and

rate

Fund

shares

Cumulative

Series

preferred
plied by amendment

stock, will

pany proposes

preferred

as

to sell such of the shares of
are

not

subscribed

Address—25

through Fla.

S.

E.

Second

Ave.,

be

the

for the redemption
face amount of 3%% bonds,

due Aug, 1,- 1969, at■ 106(4%
amount

or

$47,812,500.

of

Interest

date of redemption on the bonds

redeemed,

pany

be sup¬
7Y* V
Miami,

the

to

A,

face

the

Preferred

Par.
Interest rates on the
Debentures, and the dividend

the

of the company,

of $45,000,000

1971;

Debentures,

140.000

on

funds

First
Mortgage
$10,000,000 Sink¬
due Oct. ' 1, 1956;

$45,000,000,

due Oct. 1,

Offering—Company has granted to hold¬
of its preferred-stock,
rights to sub¬
scribe for shares of preferred stock now

ers

'

Underwriting

Des

of

$4,750,000;

Co.,

Street, Detroit, Mich.

ital

buying and selling of ice

Business—The

open account in¬
Moines Electric Light

of

$3,000,000

and

1955,

pany.

v

fund, debentures

sinking

CO.

com¬

general
A, due

$1,750,000 face amount of
mortgage bonds, Series

of

Co.

America..

us.

of. the

amount

face

$11,232,000

company's 7% cumulative preferred stock;,
to the purchase from Illinois Iowa Power

Registration Statement No. 2-5175. Form

Address—Monroe
Arden Farms Co.

of funds to be received from
aggregating $2,500,000, will be
on Sept.
1, 1943, a total

redeem

pany's first mortgage bonds; to redeem on
Oct. 1, 1943, 10,133 shares par $100 of the

a

general mercantile

1952

statement

portion

a

bank

1962,

ARDEN FARMS

Light Co. and Des Moines Electric Light
Illinois Iowa Power Co.
Proceeds
the sale of the bonds, together with

Co. from

registration

CROWLEY, MILNER & Q0.
Crowley, Milner & Co. have filed

but whose
been deter¬

to

include

tinental Gas & Electric Co. of Iowa Power

fund de¬

sinking

1946.

due

against the statement.

ago,

not

have

dates

offering

more

or

be

interdependent transactions
the "acquisition
by Con¬

of

series

a

which

We

days

will

public

Proceeds—Bonds are to be issued as part

Crowley, Milner & Co. have filed a reg¬
istration

Hearing before SEC Aug. 2, 1943 to de¬
termine whether stop order should issue

present below * list of Issues
registration statements were filed

furnishing

and

Iowa,

amendment.

tive

fer

D-L

OF OFFERING
UNDETERMINED

twenty

Central

in

Offering—-Price to the
Supplied by amendment. /

S-l.

bentures,

cumulative

whose

County, outside the City of Des
environs, and in 12 contiguous

service in the City of Des Moines and
and in two municipalities in ad¬
joining counties.
Underwriting—Bonds are to be offered
for sale at competitive bidding under the
rules of the Commission.
Names of the
underwriters will be supplied by post effec¬

Iowa

1943, to defer

July 15,

f

environs,

effective date.

posit for $996,500

625

Minneapolis,

Inc.,

"Y-"'.vy-

(6-29-43).

7'

:

and

Amendment

Off ering—Of fering price to public $105
per share plus accrued dividends.
Proceeds—of the net proceeds, estimated
at

S-l.

7.7Y

-

gas

CROWLEY, MILNER & CO.

Co.,
Abilfene, Kan., 1,500;
Pierce & Co., Dallas, 625 and
'■/

surrended for cancellation.

Registration Statement No. 2-5172. Form

Trust

Bigelow-Webb,

Upon the payment of such note,

amount of the company's
first mortgage trust gold bonds pledged by
the company as security for such note will
be

filed a

has

Co.

.

Polk

Kansas

«

Underwriting — Underwriters
are
First
Co. of Lincoln, Neb., 5,625 shares;;

Rauscher,

trust

first

the

Balance

$641,300.

Amendment

Trust

shares.

of

face

$641,000

wholesale and

and

the States of

distribution in

retail

and Nebraska.

shares

..

Address

Mass.

CO.,

the State of Kansas,

its transmission

in

all

redeeem

to

of proceeds
will be used to pay the balance then due
on the 3%
installment note held by Bank
of America National Trust & Savings As¬

engaged in the purchase, primari¬

company

and

CO.

serially $600,000 on Aug. 1 in
from 1949 to 1953
inclusive.

rates

Interest

&

statement

istration

notes,

used

stock, without "par value.
7*
Address—Phillipsburg, Kan.
Business—Is an operating public utility

cream,

Registration Statement No. 2-5183. Form
(7-19-43).

by the company from the sale of
of its electric properties, will be

certain

Kansas-Nebraska Natural Gas Co., Inc.,
filed a registration statement for 12,500
shares
of
$5
cumulative preferred

and

:') '77"

Moines

by

;v > . ' 7.fY
together with funds

*-

-

Proceeds—Proceeds,

has

ly, of natural gas in

named

.

received

THURSDAY, AUG. 12

are

S-2.

,

be

will

ment. '

INC.

Lothrop

&

owned by

,

.

to the sellers
represent
new

not

.

amend¬
ment.'
.7' 7 7;'"77.
' ' ' 7
~ ; 7
Offering—Price of both bonds and prior
preferred stock will be supplied by amend¬

go

financing on part of Woodward & Lothrop.

transaction

7/Y7"77Y7)7Y)7 Y'

Chanute, Loughridge & Co., Denver. Other

amount

stock

common

and
outstanding
by Brainard W. Parker and

owned

ward.

of

Riverside,

Street,

Light

Address—312 Sixth Avenue, Des Moines,;
'
'
~
Y
Business—Is a public utility engaged in
the business of furnishing- electric service

counties

Eighth

Si

Power

Iowa

LIGHT CO.

registration statement for $17,000,000 first
mortgage bonds, 3(4% series due June 1,

In

and for the preferred stock Stone & Web¬
ster
and
Blodget,
Inc., and Bosworth,

Registration Statement No. 2-5185. Form
S-l. (7-23-43).

be

issued

are

Washington

executors

will

public

seven

conditions.

deposit of

the

by

DATES

Offering—Price to the
supplied by amendment.

regis¬

mortgage gold bonds, 5% series of 1956
to
be
outstanding after giving effect to
the surrender of certain bonds in the face

'

for

is

from and after April 1, 1943.
How¬
the agreement may be amended any
ask

Pierce,

as

under

certain

Lynch,

7,013;
Alex.
Brown
&
Sons,
Johnston;
Lemon
&
Co.,
3,850;
Brown, Goodwyn & Olds, 1,925;
Ferris
Exnicios & Co., 1,925; Robert C. Jones &
Co., 1,925; Mackall & Coe, 1,925; Robinson,
Rohrbaugh & Lukens, 1,925.
All but the
first
group
are
located
in Washington,

about

time

Purpose—To

follows:

has

Co.

Underwriting—Principal underwriter for
Read & Co., New York,

pany's

store.

Power

dividends.

United

filed?,a

Lothrop
for

statement

Electric

underwriters

GAS

Y

IOWA POWER &

1973..

the bonds is Dillon,

selling

NATURAL

•

effective date.

Iowa."

stockholders.
Net cash pro¬
ceeds
received
by
the company for the
4(4%
preferred stock to be sold by the
bompany to the underwriters will) be ap¬
plied, together with other funds of the
company, to the redemption on a date not
later than Oct. 1, 1943, of all unexchanged
6%
preferred shares, at the redemption
price
of
$100
per
share
plus
accrued

the

r

LOTHROP

&

Woodward
tion

sale

7

Business—Engaged
in
the generation,
transmission, distribution and sale of elec¬

common
will go to

underwriters which

,

.

V,

tric energy.-

and

4%%

the

to

the

proceeds from
preferred

the

holders

be

amendment1

value $100 per share.

receive

will not

company

stock, no par.
Further de¬
supplied
by
post-effective
.77,'
7-7;77 77x,7.
7
Registration Statement No. 2-4845.
Form
A2;
(9-17-41)
; .77/7 7,
'"Y'YYY
Amendment filed July 19, 1943, to defer
to

tails

tered
$16,000,000
first mortgage
bonds,
3%%. Series due 1968, and 40,000 shares
514% convertible prior preferred stock; par

Beecraft, Cole & Co., Topeka, Kan., 2,250;
Harold E. Wood & Co., St. Paul, 1,875;

SATURDAY, AUG. 7
WOODWARD

California

who

Proceeds—The

outstanding in
103% of face
Such re¬

S-l.

preferred

(3-5-43),

follows:

as

$15,693,370 to redeem at $110 per
the
142.667 shares of company's

1954;

CALIFORNIA ELECTRIC POWER CO. 7

Address—3771

interest.

or

on

ever,

years

by

demption will require $31,150,496 plus ac¬
crued
interest, which to Sept.
15, 1943,
will amount to $756,080.

shares

of

building.
Underwriting—No underwriters.
Offering—Immediately after registration

Aug.

public,

accrued

Proceeds—The

611,

Business—Operation

statement

applied

7,012;

voting trust of April 1,
1943, have filed a registration statement
for
voting
trust
certificates
for
1,773
shares of non-par capital stock of Latham

San

the

of

plus

as

CO.

Francisco, and George P. Lauinger,
Mateo, Cal., trustees of Latham

Square

presently

1953,

15,

hands

&

MONDAY, AUG. 2

mond

be

S-2

applied

|7r preferred

equipment 7 and?
-

Cal.;:7777v7YY7,

the

holders

Fort

share,

additional

shares

sup¬

Underwriting — The
underwriters
and
amounts they have agreed to purchase are

(7-10-43)

LATHAM

the

amount

of

amendment.

Proceeds—Net

common

will

will

installation;! of

purchase

may

Street,

'77'-rCY

l.'-

be

will

to redeem at 102(4, the $62,000.000 of company's First Mortgage 5s of

.,

receivedt/ them in ' ex¬
change for their 6% preferred.
The com¬
mon
stock to be purchased from certain
large stockholders also will be offered at
a price to be filed by amendment.

of

some

from

redemption of $30,243,200 face amount of
the
company's
25-year
5%
bonds
due

will

Others

supplied by amendment.
Offering—Price to
the
public

supplied
7

underwriter.

be

also

bankers

Fisher

7

7

$53,170,000

for working; capital.
<
7
,
Registration Statement No. 2-5105; Form

be filed by amend¬

price to

a

The

ment.

Texas,

'77

Proceeds

^

15,000 shares of com¬

'

any
of the new. preferred,
exchanged which may be offered

not

Utility Holding Com¬

Public

SEC's

Act.
Names of underwriters and
to public, will be supplied by posteffective1 amendment to registration state¬

,

,

agreed

have

CORPORATION

Business---Manufaetufe70f.7face v brick.* •
Offering—-Present offering
consists ,t>*
2,0007 units,
each
unit consists of four
shares, preferred and- one share .common,
price per unit is $10.
Underwriting—None. Distribution is to
be made by direct sales by the corporation
of its treasury stock.
;
Proceeds—-Expansion of plant facilities,

purchase

stock

together with other funds to the

company

March

company and
the
develop¬

of

rare

will

Worth,

group

underwriters

The

effective.

to

the

offering—'The securi¬

ana

pany

Corporation has filed a regis¬ ment

ho par.
Address—2500-22

,

,

the

of

-

mon,

of underwriters.
Others will be named by amendment.
Offering—Company is offering 20,206 of
its 4(4% preferred shares, share for share,
in exchange for a like number of its 6%
preferred
shares now outstanding. 7; Ex¬
change offer expires at 1 p.m. on the
fourth
day
following the
date
of the
prospectus
after
registration
becomes
head

Co.

&

.

'

preferred stock and

is doing an extensive business in
war products.
Underwriters — Smith,
Barney
&
Co.,
Hornblower & Weeks and Field, Richards

amendment.

by

Proceeds—Proceeds

filed a
shares

has

53,566
par

public

Burtonite

present

At

i *

•

'

•

*•

••

tration statement-for 10,000, shares Of 7%>

company

KANSAS-NEBRASKA

to

Offering—Price

THURSDAY, JULY 29

BURTONITE

for

,

and

-

price

registration

Company has filed a

Underwriting

ties-registered are to be sold by company
under the competitive bidding Rule U-50

Amendment filed July-15, 1943, to • defer

20,206 new shares of 4% %
stock,
cumulative* par value
$100
per
share, and 110,000 common
shares, par value $5 per share.
The com¬
mon stock is Issued and' outstanding.,,
Address—North Canton, Ohio.
Business—Engaged in the manufacture

first
bonds,

Water Power Co. first mort¬
5% gold bonds, series due 1968.

gage

or

Florida

of

stock

effective date.

COMPANY

Hoover

1952,

of Lexington

July 20 fixing' offering
holders at $40 per share,)
portion to public at $40 per
more
as
may be fixed by board

to

share

■

preferred

Co.

gold

fund

and to the redemption
at 105 of the face amount of $10,213,300
due

days ago, These issues
are grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day following.

V- Fansteel

Amendment filed
unsubscribed

Y WEDNESDAY, AUG. 11

statement

Offering—Price to public will be supplied
by amendment.
Proceeds—Will be applied principally to

company's notes outstanding in the

:of7directors.

HOOVER

Power

System)

'

price

South Carolina.

in

list of issues whose registration state-

METALLURGICAL

re¬

$2,400,000 term loans from banks and
to be used for general working

tire

mentswere filed less than twenty

FANSTEEL

to

to

principal amount of $1,050,000. . •
Registration Statement No. 2-5166; Form
S-l. (6-29-43).

Registration Statement No. 2-5184. Form

and

a

part

in

applied

the

of

■

■

funds.

S. C.

Inc.,

1943.

EWT. on July 24,

p.m.

Co.,

&

•.,*

may

as

Business—This subsidiary of American
& Light (Electric Bond & Share
is an operating public utility en¬
gaged principally in generating,' transmit¬
ting, distributing and selling electric en¬
ergy
(also manufacture and sale of gas),
serving most of the territory along the
east coast of Florida
(with exception qt
the Jacksonville area), and other portions

the public at
be fixed by the board

warrants,

proceeds will be applied'
to the prepayment, so far as they suffice,

balance

ment.

Central Republic Co.,

$300,000;

cago,

■

be

Proceeds—To

price

of

Proceeds—Net

'
'
'"
'
Offering—Price to public to be supplied

by amendment.

exercise

such

Y., $1,-

First Boston Corp., N.

$500,000.

has

Co.

a

Chi-!
Registration
statement
effective
5:15
Inc.,
p.m., EWT. on July 16, 1943.
Chicago, $300,000; Hornblower & Weeks,
Bonds Awarded through competitive bid¬
N. Y., $300,000; Laurence M. Marks & Co.,
ding to syndicate headed by The First
N. Y., $300,000; Milwaukee Co., Milwaukee,
Boston Corp.
$300,000; F. S. Moseley & Co., Chicago,
Offered
July 28, 1943, $20,000,000 1st
$300,000; - Paine,
Webber,
Jackson 7 &
Curtis, Chicago, $300,000; Union Securities
mtge.
bonds 3%%
series due 1973 at
104.21 and int. by The First Boston Corp.,
Corp., N. Y„ $300,000, and Kebbon,) McCormick & Co., Chicago, $200,000.
; j Lehman Bros., Blyth & Co., Inc., Harriman
Registration
Statement
effective
3:30 Ripley & Co., Inc., Smith, Barney & Co.
$400,000;

»r-»

the

Inc., Chicago,

& Co.,

Hall

Harris,

$1,500,000;

registration statement for $20,000,000 first mortgage bonds, series due 1973.
Interest rate will be supplied by amend¬

underwriter.

principal

named

Offering—Price to the public will be
supplied by amendment.
i
:
t
Proceeds—Net
proceeds,
together
with
other funds of the company, will be used

follows:

000,000, and Goldman, Sachs & Co., N. Y.,

.filed

Salle

La

and int.

at lOd'/a

1943

by Paul H. Davis & Co. and associates.

12-year

$3,000,000

due July

Address—120

,

filed

has

Corporation

statement

debentures

July 27,

Offered

Thursday, July 29, 1943

.

will

plus

be paid

company.

expenses

of

the

to

com¬

out of other funds
7V
."v..

of
.

Registra*ion«Statement No. 2-5178. Form
(7-8-1943).

S-l.

:

Volume

Issue

.

158

Number 4198

Approved—The

SEC

THE COMMERCIAL & FINANCIAL CHRONICLE

July

on

27,

UNION LIGHT,

1943

granted company permission to offer
for sale by competitive bidding $45,000,000
1st

mtge.

'

to

bonds, series C.

exceed

:

Interest is not

V/i%.

'

X:':-

■

'<

v

Light,; .'Heat' and

jistered

Corporation

[

has

■

I

registered

Business

.

Address—19-21 Dover Green, Dover, Del,
»
Business—Organized under the laws of
Delaware on April 27, 1943, for the pur¬
pose
of engaging either alone 7 or ' with
others in any phase of the oil business.

Offering—Price to the public is $100
8hare,':;^r75:vTvvv •. :
-

per

Underwriting—Tellier & Co., New York,
Is principal underwriter.
*
^
.

Proceeds—To
its

be

applied

of

and,

corporate

proper

board

directors

used

for

purposes

as

determine.

may

Statement says it is the purpose and ob¬
jective of the management to be free at
B;

all

times

tion

to

take

set

or

opinion,

of

advantage of any

condi¬

circumstances which,

offers, opportunity

the corporation.-

for

in

profit to

.

1

.

its

Registration
apparently

•' statement- ^effective;

defective

5:30

but

EWT.

p.m.

on

July 15, 1943.
(v**

'x t> tS

1

C.

•

Balch,

holders

F,

the

as

for

shares

of

Address

8t.,

common

Bus! ness—Llfe

itation

stock,

for

to

vote

the

626

:

mittee

is

main

to

them

in

called

$1

tion

Spring

South

Co. of

ance
•

by

It,-

with

Pacific

However,

of

the

securities

com¬

held

the

and

the

iimv

no •

the committee

agreement
reinsurance
and

and

by

said

of

so-,

mutualization

Mutual

Life

Insur¬

California.

F-l.

Electrir

&

basis,

stock-

to

new

(2-19-43).

effective date.

at

$100,016 per share

stock is held

Electrlc

Corp.:

.current

repay

debt

and

mortgage bonds held bj«
associated companies, ana foi

MILLS

'<

Mills

Riverside

A-?. ■; (3-30-40)

;

; -

,

'."Amendment; filed July 15,
effective date.

United
Jirsi,

Gas

Corp.

1943, to defer

Ga.

I

Business—Company devotes its
ialmdst entirely .to cotton textile1

.

,

,

bets
>

by-prodt

Underwriting—No

agreement

has

formal

been

underwriting

entered

into

covering

(the exchange offered.
i
Offering—Under a plan

h

of

reorganiza-

tion

.

to

the

Riverside

fcf its

holders

par

plus $2,625

of

its

'in

amount

preferred

preferred

of

the

cash

stock

issued

in

for each

provided
and

the

accept

Sept. 1, 1943, but
board.

in

stock,

stock

their

the

offers

that

75%

outstanding
and. ten¬

same

exchange

share

on

only be exchanged for preferred stock or
sold to raise money to purchase and re¬
tire preferred stock or to reimburse the
company for preferred stock which it may
purchase before plan becomes effective,

Street, New York City

of Electric Bond and Share Sys¬

part

and which it does not retire and shall not

be

disposed

of

for

other

any

purpose.

Should

company
acquire
an
amount
of
not exceeding $120,000 through the
exchange of preferred stock purchased by
It, Johnson, Lane, Space & Co., Inc. has

bonds

agreed

to

erside

Mills

than

buy

such bonds which Riv¬

any

desires

$83.50

to.

$100

per

sell

at

not

value

par

less

and

ac¬

Terms—Bonds will

Offering-

.institutional
ie'

investors,

sold to

be

whose

wil)

names

supplied* by amendment; tit; 99.34%

Proceeds—To
Gas

redeem

Service

Public

$28,850,000

6%

•;

V*:-

United

Debentures

due

1953;-to pay 6%

demand note of $25,925,)00 to Electric Bond and Share; to repay
52,000,000 open account debt to E. B. & 3.;
vnd to purchase

Co.,*

from United Gas Pipe Line
of its
1st
& Coll.
4%

$6,000,000

part

1961. " Balance

due

to reimburse

will

be

used

treasury for capital

in
ex¬

penditures and possibly to pay accumulated
iividends
of $9,502,490
on
companys
$7
preferred stock -'
Registration Statement No. 2-4760, Form
A-2 (5-15-41)
United
SEC

Gas

Feb.

on

Corp. filed amendment with
21, 1942, stating that It had

unable

ieen

further

to

agreements

with

extend

pur-

insurance

14

the

com¬

panies covering the proposed private sale
o such insurance companies of
$75,000,000
if

the

company's first mortgage and coK
trust 3!/+% bonds, due 1959.
This

poration
the

*.o

"These purchase agree¬
Feb. 16, 1942.
The cor¬

intends

to

that

end

iold

privately,

continue

its

agreements

by

bonds

rose

only 4.4%.

stands

Purpose—For reorganizaztion. •
;
Registration Statement No. 2-5165. Form

When doing so please mention the "Chronicle."

as

Citizens Federal Savings and Loan Association of Hammond
5272 Hohman Avenue, Hammond, Ind.

whole

a

7.1%

higher than a year
21.3% above January,

and

agd;

investors, trustees and other* fiduciaries interested
becoming acquainted with the Federally insured investment op¬
portunities offered by savings and loan associations should write for
current explanatory literature to the associations mentioned
below.
in

The cost of living

for the United States

Danielson Federal Savings and Loan Association
84 Main Street, Danielson, Conn,

1941."

First Federal

shall

renewal

of

either

be

the

otherwise,

or

Amendment filed

afore¬

offered

or

July 24,

price."
defer

1943,

to

effective date.

Lafayette, Detroit, Mich.
First Federal Savings and Loan Association of Minneapolis
809 Marquette Avenue, Minneapolis, Minn.

Special Senate Group
A

LIGHT CO.

Utah Power &

group of five Sen¬
leave soon for a tour

will

zones

to make

of the American

Light Co. has filed

-statement

for

a

reg¬

$37,000,000

first

bonds, Series due 1973. Interest
rate will be supplied by amendment.
Address
Kearns
Building,
Salt
Lake

Russell

Business—Is

public utility operating in
Idaho, northern and central

southeastern
Utah

and

a

southwestern

Underwriting—The
fered

for

the

sale

bv
Na

Wyoming.

bonds

the

competitive

Commission.,

as

bidding

of¬

pursuant
of

the

"^derwriters

of

wes

Offering—Oifermg

rule

will

to the
will be supplied
by amendment.
Proceeds—Net

$3,500,000
sale of

Insurance

serial

1949-1953;

ceived

from

banks

of

notes,

*

together

with

Northwest¬

from
Co.

from

issue

$3,500,000 face amount of

mortgage

serially

received

Life

public

price

proceeds,

to be

ern' Mutual
and

Marquette Avenue, Minneapolis, Minn.

representing the Ap¬
propriations Committee, Chand¬
ler (Dem.,;.Ky.) and Lodge (Rep.,
Mass,)from the Military Affairs
Committee, and Mead, (Dem., N.
Y.) and Brewster (Rep., Me.),

and

bonds

of

President Roosevelt

by

July

on

23

$3,500,000

to

and

to

issue

sale

$3,500,000 face

amount

such

amount, if
the company,

of

for the following

due

be

re¬

statement

a

of activities abroad."

"The

war .effort

proach;

the

Committee

War
has

same

ap¬

Investigating

used

home.

at

Senators Mead and Brewster will

armed with data

committee

collected by
and
aug¬

staff

mented by recent conferences at
the State, War ahd Navy Depart¬
and

ments

with

Lend-Lease

officials

the

of

in

gen¬

will be used

purposes:

Administration,

Office of Economic

Office

his

of

War

the
Warfare,

Information

agencies. Senator Mead,
released by the

statement

Chairman, said no specific com¬
plaints would be investigated, but
listed these subjects on which the,
committee

members

will

seek

background and information:
"1.

Transportation and

supply

"2.

Landing

facilities

Roosevelt, in a mes¬

President

read on July 25 to the Emer¬
gency Conference to Save the Jew¬
ish People of Europe, in New York
sage

City, promised that this Govern¬
would not cease its efforts

ment

which

with

President

the

the

and

ler

Nazi

rooting

8-1.

(6-28-43).

ity,

the

as

pany's
Amendment filed

July 13, 1943, to defer

effective date. *

<

principal and

pay

bonds

case

amount

1944,

were

may

first

30-year
due

interest to

matur¬

United

the

States

plete answer to; the problem
saving the Jews in Europe.

the

be, on Utah
mortgage 5%

gold

of which $28,119,000 face

outstanding

at

rights

March

31,

facilities

To pay
Utah Company's first lien and
general
mortgage
gold
bonds,
Series
of
"4 Vis of
1944", of which $4,068,000 face

and

amount

Roebuck

&

Co.

ships and
without

shares

160,000

value,

par

'Co

of

have

of

filed

a

member¬

capital stock,

To

Sears, Roebuck

&

'

Co.,

925

Business—Profit sharing pension fund.

Offering—The 20,000 memberships in the
pension
fund
represent
the
maximum
estimated

number

of

memberships

may be offered to eligible employees, during
12 months following the effective date

registration

statement, upon
coming eligible for membership.

000

shares

of

their

The 160,-

capital stock of Sears, Roe¬

during said period in accordance with the
of

the

fund.

Purpose—To
iu

the

>

employees

to

profits^of the company; to

share

encour¬

habit of saving, and to provide a
plan through which each eligible employee
may accumulate his own
savings.
Com¬

age

the

pany

each

certain

the

certain

if

the

received

moneys

certain
of

invested

v

stock

of

funds
U.

these

and

invested,

capital

contributes

to

the

fund

out of its net profits for
each member contributes a

and

percentage of his salary

allowance
other

year

moneys

year

S;

the

were

or

service

contributions,

by
in

the

invested

Government.

fund,

shares

company.
in

of

with
are,

the

Recently
obligations

-JV.

Registration Statement No. 2-5153. Form
A-2 (6-15-43).
Registration
p.m. EWT

on

vear

pay Utah
first
and

statement

effective

July 22, 1943.




face

amount

31,

4:30

strategy),

"4.

particularly

and

of

American

of

in

follows

"In
the

York

New

the

to your telegram of

reply

a message

Conference

Emergency

to
to

"5.

The

committee

filed

July

that the

19,1943, to defer
now

.

June Living Cost Down
of,

and

workers

goods which

are

being produced in an ever-

tion

living

for

lower-salaried
in

June

wage
cler¬

declined

in

and

are

what

the

fighting

forces asked for and need."

Washington advices July 23 to
the New York

"Herald Tribune"

36 of 65 industrial cities

surveyed
by the'National Industrial Con¬
ference Board.
Living costs were
higher in 23 of the cities, and re¬
The

July

Board's

"The

announcement

further

largest decline, 2.6%,
decline

a

of

five other cities.
crease,

more,

of

said:
oc¬

in Youngstown,

curred
was

unchanged in six of them.

28

1.8%,

1%

but there
or more in

The largest in¬

occurred

in

Balti¬

but there were seven other

cities in

Jews and of our repeated en¬

which the rise

was

1%

said:

not

cease

Roosevelt

at

House luncheon today

a

suggested,

White

by Senators

The President

Senator

that the group

tention to the

Russell

said,

give particular at¬
'transportation dif¬

same

world

and

tions

that

American

and

the

supplies."

movement

also reported

paper

of

of

Jewish

and of other
marked
for
Nazi savagery, is

under

by

"United

Na¬

to

finance

and

manage a real solution

as

part of

the war."

Cotton

Spinning For June

The Bureau of the

Census

examination

constant

by

the State Department, and any
suggestion calculated to that end
will be gladly considered. An in¬

June

on

30,

22,777,328

.1943/

wer e

erated at some time during the
month, compared with 22,788,058
May, 22,893,630 for April, 22,925,194 for March, 22,859,160 for
February, 22,889,954 for January,
and
23,094,560 for
June, 1942.

aggregate
hours

month

number

of

reported

active

for

designed to deal with
these problems.
You will readily
no

measure

is

prac¬

ticable unless it is consistent with
destruction

of

Nazi

tyranny;

and that the final defeat of Hitler
the

system

rooting out of the Nazi
is the only complete an¬

swer.

This

Government

operation with
ernment

to

be

in

the British

has

co¬

Gov¬
those

agreed upon
which have been found

practicable under war con¬

ditions

and

taken to put

the

was

10,701,938,401.
Based
activity of 80 hours per
week, the cotton spindles in the
on

an

United States

ing June,

city.

were

1943,

at

operated dur¬
129.7% capa¬

This percentage compares,

the

for

May, 133.2% for April, 134.4%

basis,

with

March, 135.9%

138.8%
for

same

for

of

for February,

January, and 133.7%

June, 1942.

ber

134.1%

The average

num¬

active; spindle hours

spindle

in

place for

steps

are

now

being

them into effect".

per

the month

457.

was

INDEX

created

the

of
op¬

for

tergovernmental agency has been

that

an¬

on

which

for

follows:

the

people, of course,
peoples
likewise

slaughter

the

undertake

on

rescue

measures

ficulties,' with reference to both
lend-lease

will

endeavors

until Nazi power is for¬

crushed."

The

and

Russell and Mead.

those who could

These

saved.

be

realize

"The plans were discussed with
President

save

Mr. Hull's message as

fronts quickly and in good condi¬

In Industrial Cities

mained

the terrible condition of the Euro¬

as¬

increasing flow reach the fighting

ical

glad to transmit a message
Hull, Sec¬

am

"The

date.

cost

I

in¬

also

structed the Senators to obtain
surance

The

Save the Jewish People of Europe,

ever

civilian populations,

among
.

dis¬

these

civiliza¬

new

July 22 that accord¬
ing to preliminary figures, 23,438,038 cotton spinning spindles
were
in
place
in
the
United

message

deavors to

supplies

where

a

Africa.

nounced

Roosevelt,

pean

Arrangements for the

tribution

(6-30-43).

Amendment

build

tion, Mr. Hoover suggested devel¬
opment of the uplands of Central

the interest of this Government in

confusion of functions.

faiths, not Jews

place

a

may

foreign fields (not relating to mil¬

refunding

mortgage gold
5%, of which $11,813,000

people

spindle

itary

funds,

outlet for the persecuted

As

in

activities

Administrative

were

Registration Statement No. 2-5173. Form

effective

post¬

alone.

The

Light & Traction Co.'s 30-

outstanding at March
3R 1943, these bonds having been guaran¬
teed as to
principal and interest by the
Utah Company.
A-2.

those

an

of all lands and all

retary of State, which has my full
concurrence.
You are aware of

any

earners

.

,

permit

March

be¬

buck & Co. represent the maximum num¬
ber of shares which, it is anticipated, may
be purchased by the fund for its members
rules

at

which

the
of

outstanding

bonds, Series A,

Address—Sears,
Roebuck
&
South Homan Street, Chicago.

-

were

1943.

20,000

in

period.

"3.

8EARS, ROEBUCK & CO.
Savings
and
Profit
Sharing
Pension
Fund of Sears, Roebuck & Co. Employes
Sears,

in
the

country
and

now

needs

from the Horn Cordell

war

1943.

registration statement for

this

of

com¬

sinking

Former
President
Herbert
Hoover, speaking by telephone
from California, told the
meeting
on
July 25 that the world today

from President
addressed to Dr. Max
Lerner, Chairman of the panel on
international relations, was given States
The

air¬

and

municipal

the

of

out

system were the only com¬

planes in foreign areas developed July 15, 1943, asking
by

con¬

curred, were read at the closing
of the conference.
Mr.
Hull said the final defeat of Hit¬
session

.

To

and

those;who could be saved.
He also said that this "great hu-»
This message and another from man problem" must be met as
Secretary of State Cordell Hull, part of the reconstruction of the

"Times" of July 26:

for

school

te save

as

by sea, air, highway and rail.

serial

of

Pledges Efforts
To Save Europe Jews

"pie fighting

scrutinized with the

State,

FDR

*

at

companies,

Insurance

•Guardians,

firemen's, police and other pension funds, etc.

fronts, Senator Mead added, will

the

Savings & Loan Association

Twin City Federal

Eighth and Marquette, Minneapolis, Minn.

efficiencies in the administration

new

Street, Los Angeles, Calif.

735 South Olive

Senators

Senator Mead is¬
saying that he
and Senator " Brewster hoped to
bring back
information
which
"will result in improvements and

be

Paul, Minn.

Standard Federal Savings and Loan Association

July 25

sued

certain

of

any,

Fourth at Wabhsha Street, St.

Russell and Mead.

On

William/Wichita, Kans.

Federal Savings and Loan Association

St. Paul

at the White

House

gen¬

Utah,

215 East

Plans for
discussed
with

were

Hinsdale, 111.

Peoples Federal Savings and Loan Association
64 South Fourth Street, Minneapolis, Minn.

from the Truman Senate War In¬

trip:

Savings and Loan Association

Mid Kansas Federal Savings and Loan Association

vestigating Committee.
the:

Federal

8 East Hinsdale Avenue,

Chairman,

and other
be

will

company

supplied by amendment.

eral

Hennepin Federal Savings & Loan Association
Hinsdale

Ga.),

(Dem,,

and Loan Association!

112 East Fourth Street, St. Paul, Minn.

effort.

war

—

City, Utah.

be

Ben Franklin Federal Savings

study

a

704
ators

the

mortgage

to

First Federal Savings and Loan Association of St. Paul
350 Cedar Street, St. Paul, Minn.

special

of the war

be
UTAH POWER &
istration

Savings and Loan Association of Detroit

Griswold at

negotiations

the public as circumstances shall dictate
order to obtain the best possible

In

eral, funds

crued interest.

The smallest

Individual

The committee consists of Sen¬

,

■

Baltimore

shown in Houston, where it

V

before

or

time may be extended'by
of this issue, shall

The bonds

available.

advance of 9.6%.

ators

■

preferred stock in exchange therefor
value in first mortgage 5Vz%

$120

.bonds,

der

Mills

an

Investment Funds

all

was

trust

Underwriters-^None

waste.

or

in

1942

comparable fig¬

largest increase dur¬
ing the twelve-month period with

$75,000,000
3Y*%

collateral

1958

Business—Production and sale of natural

*.o

activity

higher this

June,

To Tour War Areas

registered

and

mortgage

londs due

said

1943, due Feb. 15, 1963.

] Address—Augusta,

are

CORPORATION

GAS

UNITED

ments expired on

has

registered $639,000
first mortgage bonds, dated Feb. 15,

bVz%

ures

in

which

Registration Statement No. 2-4379. Form

ateral

,

felVERSIDE

for

A Safe Haven For

costs

:onstruction

imendment states:
l

than

cities

423

as

living

0.1%.

share*

5

first

and

parent

ihase

Registration Statement No. 2-5098. Form

<-

Gas

share

a

share held

$2,835,000

rehabilita¬

;v.Amendment filed July 19, 1943, to defer,

,

On

subscribe

may

each

ponds

of

held
the

connection

affecting

per

Insurance

Executive
office,
Angeles, Cal.

objectives

vote

plan

SEC

'.i

-

powers

shares

the

of

one

unit.

Proceeds—To

<

508,200

par

Life

*

filed
.

lnsura nee.

the

upon

were

of

recorded the

iy-Columbia:,Gas'. &

Leslie

the

.

Purpose—The:.agreement places

,

"Living costs

.

.

t

Substantially all outstanding

Share¬

have

with

Mutual

Of ^Issuer,;

—

and

Mutual

certificates

Los Angeles, Cal.
West Sixth St.* Los

623

.

Rand

Committee

Share, of Pacific
Co. of California.
.

E.

statement

trust

voting

aolders

tem

Pacific

Protective

registration

a

cost

June

utility

.

>

each

for

{as;

CO. OF CALIFORNIA
A.

the

rose

Cincinnati

Offering—Stockholders will receive of
(er to subscribe to 25/94ths of one com¬
mon
share in units of 5/94ths of a shar*
for each 5/94ths of a share held at $5.3*

^ v'i.'

'

Waggener

St.,

Columbia

—

Address—2 Rector

V»p' iy'in'--* 'l-t),.

f ACIFIC MUTUAL LIFE INSURANCE
;

commoi

whole,

a

?

Registration Statement No. 2-5155. Form
S-2. (6-18-43).
,

-

par

re

^V:^i•-/v:
,

Underwriter

(or

t

of,the

Co.

Operating v electric

4

-r-

Corp.

;

I

any

Power

$100

Main

jompany

sessable.

*

&

v■ v..,V■'

Ohio-

3,000 shares of Class A capital stock, with¬
out par value, fully
paid and non-as¬

■

shares

25,000

Address—4th

.;

OIL VENTURES CORPORATION
Ventures

For the United States

or more.

PANY

Union

:

Jtock

-V-.:;

Oil

HEAT AND POWER COM

Page
Bank

and

Insurance Stocks..

Broker-Dealer Personnel
Calendar of New

Items

417
420

Security Flotations 422

Canadian Securities

411

Investment Trusts

408

................<.

Municipal News and Notes..........

420

Our

Reporter on Governments......

424

Reporter's Report....

407

Our

Public

Utility Securities............ 406
405

Railroad Securities
Real

Estate

407

Securities

411

Securities Salesman's Corner
Tomorrow's

Says

Markets—Walter
j..

Whyte

419

THE

Thursday, July 29, 1943

CHRONICLE

COMMERCIAL & FINANCIAL

424

Teletype—N. Y. 1-971

IIAnover 2-0050

4

.

.

.

.

Aeronca Aircraft

YUGOSLAVIA

FOREIGN

no. inc.

.

•

' '

cpFPTAT TSTS

'

On Governments"

INCORPORATED

Mussolini's downfall.
which
were

Well, the reaction came, before, not after
The decline which was forecast in this column,
you
It's never good sense to be
about a market which has been in a protracted upswing. . . .
.

.

.

Members N. Y.
25 Broad

Air

NEW YOR K 5

,

with confidence again.

tions to buy

telephone

york

new

1-576

SEPTEMBER DRIVE

.

Secretary Morgenthau gave us on

That's good news

The price level

.

.

.

HAnover

.' T

,

i

Communications

v

Industries

& Co.

the Septem¬

Pine

BUY WAR

BONDS

.

.

.

2-8780

1-1397

Y.

Street, New York 5
Telephone WHitehall 4-7970
Bell System Teletype NY 1-2218

Good bonds chosen for the basket and unless things
demanded it. . . . And the complacency—remem¬ ber drive.
ber that word and guard against the state of mind—made it inevi¬
go completely haywire, the campaign should be a successful one. . . .
table.
But now let's get on to the background of the reaction $15,000,000,000 isn't too much if the drive is properly handled
which carried the tax-exempt 2%s of 1965/60 down to 112 last week judging from the unprecedented preparations, it's going to be. . . .
It'll come from individual investors, corporations, insurance com¬
and to some of the inside stories. ...
panies, savings banks, trust funds, etc. . . . And the banks in the
This
wasn't
a
shake-out. ... It was a shake-down.
commercial classification will be able to come in right after the
A prime and highly significant distinction. . . . There was
drive officially closes and pick up a few billions of new 2s and new
virtually no trading in the long-term tax-exempts on the way
% % certificates;.,.
down last week..
Reports were heard all over the Street about
Incidentally, that might mean real trading in the securities
the inability of dealers to liquidate blocks of 25 bonds! . . . The
won't begin until after the commercial bank subscriptions are
market suddenly closed down. . . . Bids disappeared. . . . Prices
in...
For the commercial banks make the market and their ac¬
were marked down without an accompanying absorption of suptivities are essential for an active, colorful session. ...
} plies of bonds. . . .
And then
Secretary Morgenthau came along and in a
/ Essentially, the "basket" will be the same as in the second war
letter
transmitted through
the Federal Reserve Banks to
loan drive.....
'/
,
•
- _jmm
Government bond dealers, denied the story that was the basis for
Series E, F and G war bonds, of course. . . . Apparently, the I s
the rumor.
Did his best to knock down the report which had
and Gs are here to stay despite persistent rumors to the contrary. . ,.
been the basis for the whole thing. . .
And the reaction was
Comment from authoritative source is that Treasury has no desire
over—just as the world received the news that Mussolini had
to eliminate a list of people who are buying happily and steadily. . . .
fled from his untenable position and his government had fallen.
Fs and Gs have their followers, have built up definite favor in spe¬
Only, Morgenthau tried to keep the newspapers from print¬
cific groups.
v So regardless of the disadvantages of a "demand"
ing the story, so it's not generally known that the Secretary
bond, they're here indefinitely. ...
:
of the Treasury actually stepped in to kill the grapevine tale. . . .
Series C savings notes. , . . For tax anticipation purposes. . . .
But let's go back—to something
this observer considers of
Large corporations may buy these with confidence and thus pursue
tremendous importance.
•*.
Namely that the reaction in the taxtheir own pay-as-you-go plan. . . .
exempts had all the ear-marks of a "phony" . . . And blunt as that
2M>% bonds of September 15, 1969/64. ... The fourth of the
seems, all that's asked is that you read the following and then draw
"on sale" series of 2V2S, identical in every respect—except exact due
.

.

N.

L. D. Sherman

.

. .

Ass'n

Security Dealers

St., N.Y.

General Aviation Equipt.

30

THE

_

/Citizens Utilities
Copper Canyon Mining

Teletype

Bexl

witnessing that correction in the market which was
which had to come to permit individuals and institu¬

essential and

,

Kellett Aircraft

'

Enterprise 6015

2-3600

;

...

Common

&

Company
'

.

We're simply

.

.

...

;

Pfds.

Great Amer.

a

.

philadelphia

telephone

REotor

"complacent"—especially
It's
good idea to be sure you're on a one-way street, because
there's
such thing.
There's always a turn some where
along the line.
And this observer points with what it is
hoped you'll excuse as pardonable pride to the predictions printed
here during the last few weeks about the imminence of a
turn
in the trend.
A breathing spell.
. .
A drop "sponsored" and
"approved" by the official sources. . . . The timing was right for it.

STIiEE T

N/AS,S;AU

-4 5

.

no

V-

HI. S. Wien & Co.

Inc.

Dealers Association

Security

York

New

Members

warned about....

never

Western .«•' Pacific v.-f
v
'
•;

Information on request

ByS. F.PORTER

.

..

Teletype

Kobbe, Gcarhart 3c

.

/-

Appliances, Inc.

Majestic Radio & Television Corp.

'

'

New York 4. N. Y.

"Our Reporter

Y

Allen B. DuMont Laboratories,

SECURITIES

50 Broad Street

Corp.

Old

Bendix Home

r.ARL marks &

Chicago, Milw. & St. Paul

6x/2.

selling between 3l/2 and

■

fields,

Home

POLAND'

GREECE

Chicago North Western

Aeroplane;

with post-war prospects in the small
Laundry, Electronics and Television

stocks

Markets in Bonds of

Firm Trading

Missouri Pacific

For Dealers

and

.

...

Des Moines &
SouthernRy.4/91 and Common
"Ft. Dodge,

"Utica & Mohawk

..

•

Valley Ry

4V2-41

•

.

"Consolidated Dearborn Com.
Southern Traction 5/50

.

.

•

.

.

.

.

.

*Circular

available

on

request

.

.

.

you own

conclusions.

.

...

the reason for the drop in the taxthe rumor started by a writer on Government bond
!movements from Washington to the effect that the exemption clause
was going to be made less favorable by Congressional action. . . .
(2) It's all vague as can be but the tale was that the Treasury was
going to recommend a lowering of the corporate normal tax from
24% to some unmentioned figure in order to eliminate the advantage
(1) According to the story,

of 2y2s of 1969/64.

date—with most recent issue
2V2s

100.10-12 at this writing.

selling at

are

2V2s

are

.

.

.

.

.

.

& Co.

Blair F. Claybaugh
Member

Stock

Philadelphia

Exchange

Tele. NY 1-2178

Whitehall 3-0550

.

New York
Syracuse,

Pittsburgh

Harrisburg,
Miami

Beach

.

...

-

The June 15

The 1968/63

100.16-100.18 level. . . . The 1967/62 Fed. Machine & Welder
2V2 are at 100.30-31. . . . - And now these are coming in. ...
They Situation of Interest
should be attractive, should get up to the 100.8 or 100.10 level with¬
Federal Machine & Welder Co.
out any trouble shortly after closing of the subscription books. . . .
But commercial banks can't buy. . . . And so the big play that or¬ offers attractive possibilities, ac¬
dinarily follows an issue bought by the banks will not be there. . . . cording to Reynolds & Co., 120
of the exempts.
V ■
'
Broadway, New York City, mem¬
2% bonds of September 15, 1953/51**. . . Also designed to
(3) If the exemption was made ineffective by this, the rise in
bers of the New York Stock Ex¬
slip right into growing list of 2s in the intermediate classifica¬
such an issue as the 2%s, for instance, since last year would be with¬
change. An interesting basic re¬
tion.
Various 2% issues due in the 1951/49 group are selling
out foundation and a prolonged decline would be justified. . . .
port upon the company may be
between 101.5 and 101.14.
2s of 1952/50 group are selling be¬
had from Reynolds & Co. upon
(4) Had you heard that story from any authoritative source? 1
tween 100.21 and 100.30
2s of 1955/51 are at 100.20. . . . -So
(5) Had you seen it in the newspapers? Did or do you believe
request.
';'
here come these 2s of 1953/51, destined for a Vi to % premium
the rumor?
after market settles down. . . . Should be the best bond to play
(6) Outside of that rumor, the market had no adverse influence
with.
Should arouse the most speculative interest. . . . Com¬
Situations' Of Interest
to battle.
It was tired, sure.
That was clearly told in these
mercial banks can't buy these during the drive but after the
columns weeks back.
It deserved a shake-out. .
.
But a shake¬
Buckley Brothers, 1529 Walnut
drive is over, banks will be getting their own flotation of 2s and
down?
That's somehting else again.
Street, Philadelphia, Pa., members
%s and the 2s well may be the same as these. ... Or only
And to top it all off, after the market had been shaken down
slightly different. ... So keep your eye on this one, particu¬
of the New York and Philadelphia
Morgenthau felt it necessary to come along and write the dealers—
larly.
via the Reserve Banks—that:
Stock Exchanges, have prepared
And 7/8% certificates.
The usual thing. . . . Secretary Mor¬
"I feel there is a contract which stands between the Federal
interesting
circulars
on
Four
Government and the holders of these Federal tax-exempt securities
genthau also sold $2,509,000,000 7/s% certificates last Thursday and
Wheel Drive, Autocar- Co. com¬
and I don't intend to directly or indirectly circumvent it." . . .
Friday to refinance the $1,609,000,000 maturing certificates of in¬
and preferred,'1 and
York
debtedness and to raise an extra $900,000,000. . . . With this extra mon
Maybe we're being unfair but we wouldn't be surprised to
$900,000,000 in the form of new 7/8S, the Treasury has the huge sum Corporation w. i., which offer at¬
learn in the future that some of the bigger dealers around Wall
of $17,461,000,000 certificates of indebtedness outstanding. . . . All tractive
Street "make a killing" on this one.
possibilities at current
due within the year.
Maybe we're being unduly suspicious, but the comeback in
levels the firm believes.
Copies
the quotations—especially on the 2%s—was a little too easy to
And now that the VsS have been taken care of and, as forecast
of these interesting circulars may
have been completely natural.
last week,'Morgenthau has raised another $900,000,000 along with
be had from the firm upon re¬
this refunding, he still must sell new issues to take care of the $279,And now as for the news from Italy and the market's uneasiness,
•
000,000 1% notes due September 15 and the $1,401,000,000 3V4S up quest.
that's to be taken for granted and is entirely logical. . . .
for payment October 15. ... Unless he chooses to use up his hardraised cash from individual subscriptions to pay these off. . . . The
3V4S are holding at 100.22, indicating a refunding offer is expected. . .
J. J, Flanigan
A liberal dividend payer
exempts was

,

Rochester Transit Common

...

holding around the

-

.

.

.

...

«

.

.

.

.

.

.

...

.

.

.

.

.

.

...

...

.

.

.

.

r

.

.

.

...

,

.

.

With

Buckley Brothers

Triumph

LOS ANGELES,

Explosives
Bought

—

Sold

Quoted

Flanigan

with Buckley

Sixth Street,

Calif.—John J.

become

has

associated

Brothers, 530 West

members of the New

INSIDE THE
One

rumor

the story

around is that the

trading

department.

Flanigan has been

HAY, FALES & CO.
Members Npin

71

York Stock Exchano*

Broacwaj N. Y. BOwling Green 9-7027
Bell

the security

Teletype JTY 1-61




geles

and

Mr.

identified with

business in Los An¬

San

Francisco for

number of years.

a

spread

to

from there!

sent the story out

information.

ficial"
No

.

.

.

.

An odd enough way to

.
:

.

/

-

find "of¬
.

The weakness in the exempts created
opportunities and now that the clouds have
there should be marvelous possibilities in those

doubt about it.

some

the

Washington service that

about the lowering of the normal corporation tax came
to check the story, then went back to Washington and

New York

York Stock Exchange, as manager

of

NO

MARKET

cleared away,

.

.

Petrolite Corp., Ltd.
averaged

Dividends 1931-1942

$1.82

per

than

11%

share
on

or
more
present price.

Memorandum

on

request.

wonderful trading

been

.

BONDS-NO PREFERRED STOCK

2%s and 27/8s.
It's
any

...

.

•

hard to imagine how

r

Congress could

lowering the normal tax rate, even though
rate at the same time and tried to show how it

move

surtax

inate

explain to the public

tax-exemption on Governments.

...

it raised the
would elim¬

Hill, Thompson & Co., Inc.
Markets and.

120

Situations for Dealers

Broadway, New

Tel. REctor 2-2020

.

York 5

Tele. NY 1-2660