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V
ESTABLISHED 1S39
Volume 166
Number 4608
New York, N. Y.,
The Technical
Thursday/July 3, 1947
The
Viewpoint
"ACCUMULATION"
Labor
authority makes detailed analysis of
Market analyst argues stock market as represented by most popular
industrial averages has turned corner and is on upward trend.
Professor Anderson
represented
most
by
Stock
corner.
prices
in
are
Th
trend
an
up¬
since
October
the
establish¬
ed
intra-
an
day
low
160.49
low
of
and
close
a
of
163.12. I wrote
then, I
peat it
re¬
Averages
concerned with.
good
a
This
cross-
of investment leaders is
excellent
an
guide to the investment
Its action
indication
is
more
reliable
of what
invest¬
ment
capital is doing than that of
secondary issues and/or railroads.
That
is
why in most
discussions
usually
of market movements
we
refer to the Dow Jones Industrial
Average.
?
Stocks
and
of
secondary
which
railroads
of
dipped
to
new
(Continued
character
during
page 30)
on
<S>sized
policy
a
<S>
.
—
union pro¬
motion
and
the creation of a Joint Committee
of the Senate and House to
a
t|||' As IIV' See It
"evening
the
Europe and the United States
further in its
effort to
.
.
,
remarked that
proceed much
European world on
the
start
of
which
constitutional position of the law.*
Labor-
Management
Relations
Individual
Act
of 1947, on
the
ation
yegula-
act|>n might be
I*{'
e m
t i
o n
mate month that has
elapsed since these words were uttered
has been general, continued and varied.
In Europe there
appears to be, as there has been so often and so unfortu¬
nately in recent months, a sharp divergence of view. Britain
on one
side, Russia on the other,- and the other powers lined
up or threatening to line up with one or the other—or else
remaining aloof to avoid offense to this or to that power..
equally divergent views as to the real meaning
of Secretary Marshall's world appear to have developed.
The British—through their Foreign Secretary—profess to
31)
on page
more
numerous
the
Silver Anniversary
Party of the Bond
Club of Cleveland; the Annual Summer Outing of the Bond Club
of
Toledo, and at the Annual Summer Party of the Bond Club of New
Jersey, appear in the PICTORIAL SECTION.
Leland Electric
trie
organizations of today.The Act of
1947 is arranged
under five titles. Title I contains
numerous
amendments to the Na¬
tional Labor Relations Act of 1935.
Title
II
provides
mechanism
for
reorganized
a
interstate
foreign
and
provides for a
special procedure for settlement
of labor disputes constituting na¬
and
commerce,,
tional emergencies.
Title III cov¬
basic topics; suits by
several
the statute's provi¬
sions pertain to union organizing
activity, union security (the closed
shop, etc.), union reports, the'le¬
gal status of unions^ the relatrbA
of unions to
and
labor organizations;
restrictions on payments, by em¬
charges
union
and
membership; to
type of collective bargaining
units; to collective bargaining ob¬
ligations, rights, and practices of
employers and employees; to such
(Continued
1 The
on page
20)
brief
analysis which follows is
based upon copies of the hew
l^w pub¬
lished by the Commerce Clearing House,
Inc.
(New
ment
reau
Labor
Relations
of
Management
with
Law:
Act,
National
Labor
1947)
Affairs
Relations
accompanying
and
Manage-,
The
(The
Act
Bu¬
Labor-
of
1947),
explanations
and
comments.
against
ployers, to representatives of em¬
ployees; "boycotts and other un¬
lawful combinations"; restrictions
o n
contributions
political
o
f
State and
Corp.
Havana Litho. Co.
funds,
the
to
the
unions; and strikes by Government
Aerovox
politics, Union health
welfare
concilia¬
Federal
tion of labor disputes in industries
and
taken at
of
and powerful la¬
bor
ers
the
PICTURES
>.
sponsibiliiy " orrxtke- part
affecting
About
(Continued
J.Anderson, Jr.
during greater restraint and re-
Reaction both at home 4nd abroad during the approxi¬
;
Thos.
in-
of
means
Covered
important of
a
a s
Topics
Individual topics covered by the
law are very numerous. The more
hand,
hasizes
;
cer¬
The
p
give proper effect to whatever
by this government." ' •, r:: -
provisions defining
tain terms used in the statute and
others intended to strengthen the
union
must be some agreement among
to the requirements of the situ¬
and the part those countries themselves will take in
to
and
includes
em¬
other
undertaken
affect
tions
bargaining
its way to recovery, there
the countries of Europe as
order
study
basic problems
friendly labor rela¬
productivity,
Title V
and report on the
up"
of
Title IV provides for
ployers
and
e m p 1 oyees.
Some weeks ago the Secretary of State
"before the United States Government can
.
employees.
a s
means
power
have
lows
on
protection
.
Industrial
composed of
basic
'
.
of
now.
Not secondary issues, but the in¬
vestment market as it is measured
we are
Labor-IVEanagement Relations Act of 1947—made law when the Senate voted,
23/to over-ride the President's veto of the Taft-Hartley Bill—effects numerous and
changes in Federal labor policy. The National Labor Relations Act of 1935 empha-
In¬
Dow
age
Dow
has
1v
June
of
dustrial'Aver¬
an
regarding industry-wide and regional bargaining; and work stoppages.
EDITORIAL
when
1946,
as
measures
e
been in
it
.'
The
uptrend.
y have
an
Owen K. Taylor
popular Industrial averages
the$>—-—"—
turned
trend.
c
the Basic Main Trend of Stock Prices is concerned, the
as
as
average
of
quacy
respon¬
Doubts ade¬
.
by statistical data and fundamental conditions.
So far
what
provisions regarding closed and union shop; union
approves
sibility; strikes and boycotts; and for continuing Congressional investigating committee.
background for stock accumulation in current postion,
backed
market
law, citing important departures from Wagner Act's
new
Coming Boom in America's Railroads."
provisions.
a
By THOMAS J. ANDERSON, JR.
Associate Professor of Economics, New York University
Economist-Technical Consultant; Author of "The New Inflation,"
Sees
Copy
a
Taft-Hartley Act
*
By OWEN K. TAYLOR
"The
Price 30 Cents
Municipal
MARKETS
R. H. Johnson & Co.
Established
IN
Tcanadian
Bonds
j
1927
^securities/
■'-a;—* INVESTMENT SECURITIES
Hirsch & Co.
v
York Stock Exchange
and other Exchanges
64 Wall
25 Broad St., New York 4, N. Y.
HAnover 2-0600
Chicago
Teletype NY 1-210
Cleveland
Geneva
(Representative)
SOUTHERN
SERVING
;
London
BOSTON
Troy
Bond
Street, New York 5
Members New
PHILADELPHIA
Albany
Baltimore
Buffalo
Williamsport
OF NEW YORK
Harrisburg
Scranton
-
Woonsocket
CALIFORNIA
Bond
Air
SINCE 1927
New
52
Wilkes-Barre
Springfield
HART SMITH & CO.
Dept. Teletype: NY 1-708
York
WILLIAM
Bell
Security
i
Underwriters and
Distributors of Municipal
New York
S.
626
SPRING
ST.
Corporate Securities
TRinity 5 761
ANOELRS
14
ClAREMONT
•
PASADENA
•
MEMBER LOS ANGEIES STOCK EXCHANGE
DIRECT PRIVATE WIRE TO NEW YORK
Established
REDIANDS
New York
Cincinnati
Chicago
Columbus
Denver
Buffalo
CITY OF
New
Brokerage
NEW YORK
England
Public Service Co.
Plain Preferreds
Raytheon Manufacturing Co.
and Dealers
Analysis
upon
request
$2.40 Conv. Preferred
120
Toledo
THE
OF
for Banks, Brokers
Prospectus
Members New
CLEVELAND
NATIONAL BANK
Toronto
Service
Common
on
request
* '
■.
Reynolds & Co.
1899
Montreal
Common
OTIS & CO.
(Incorporated)
1-898
^Georgia Hardwood Lumber Co.
*
LOS
Assn.
HAnover 2-W80
Teletype NY
Bond
and
1
Dealers
ST., N. Y.
Emery Air Freight Corp.
Jnyestment Securities
CHASE
THE
Products, Inc. Com. & "A"
Detroit Harvester Co. Com.
Wtgense/lerSDarstJnc
Department
Members
Syracuse
^Dallas
Pittsburgh
THE NATIONAL CITY BANK
York
Stock Exchange
Broadway, New York 5, N. Y.
Telephone:
Hardy & Co.
Members
New
York
Stock
Members
New
York
Curb
30 Broad St.
Exchange
Exchange
New York 4
REctor 2-S60O
BeD Teletype:
NY 1-635
Tel. DIgby 4-7800
Tele. NY 1 -733
ira haupt&co.
Members
and
111
New
Broadway,
REctor 2-3100
Boston
York Stock Exchange
other Principal
Exchangee
<
N. Y. 0
Teletype NY 1-2708
Telephone:
Enterprise 1820
2
THE COMMERCIAL & FINANCIAL CHRONICLE
(2)
The Economic Riddle of the Dollar
LAMBORN & CO.jlnc.
t
Alabama &
President and'Chairman of the Board, Willys-Overland Motors, Inc.
NEW YORK 5, N. Y.
*
Shortage-
By JAMES D. MOONEY
STREET
WALL
99
;
Thursday, July 3, 1947
dollar shortage arises mainly from restrictions
throughout world, Mr. Mooney urges
Pointing
our
vertible
'
r—
currencies
on
an
*
political and economic governments as remedy. Advocates^apital investments abroad in
loans, along with application of American technical "know-how." Stresses need for
vertible currencies and free gold and exchange markets.
ference to
Raw—Refined—Liquid
,,
Exports->-Imports—Futures
The dollar shortage comes down
in other countries and the capacity of
DIgby 4-2727
needs.
The breakdown of
the
rganized
and
3/6s,
f
1956
well
Savoy Plaza
Bibb
tal
Mfg. Co.
Piedmont & Nor.
1
Ry.
Street, New York 5
Telephone COrtlandt 7-4070
Teletype NY 1-1548
,
and
of, free
hungry
have
James
D.
Mooney
markets,
example,
reported
to
surplus of 600,000 tons of
is
going to waste while nations
needing fish do not have
the
money to buy. The United States
has a surplus of potatoes, onions,
Cyanamid
iy2% Conv. Pfd.
citrus
Bought—-Sold-—Quoted
Prospectus
on
fruits,
and
rather
a
marketed to foreign countries for
,
<
York Stock Exchange
\
New
\
.
New York Curb
Tel.
-
of
remove
the
trade.
restrictions
world,
these
Short Term Needs and the Fallacy
of the Bilateral Trade Concept
The dollar shortage is
real, but
its reality is being greatly accen¬
some
coun¬
in
were
in
trade
such
Mayflower Hotel
coun¬
Germany,
Italy,
and
Japan. The bilateral trade con¬
cept has led to the idea that a
country must buy as much from
another country as it sells- to it.
as
This
is
an
Jones Estate Corp.
concept
erroneous
which is restricting trade all over
the world. Multilateral trade will
enable
it
to
and
it
wants
quantities
wants
with
credits that
the
goods
Ill)
Members Baltimore Stock Exchange
country to buy wherever
a
in,
120
Director, Joint
Comrajtee
on
and
WOrth 2-4230
pay
Bell
Co. WD
Virginia Electric Power
currencies
the
where
purchased.Ordinarily
are
before the
war
the United
States
Central States Elec.
from India than
India purchased from the United
(Continued on page 38)
purchased
more
Common
Packing Common
New Eng.
Electric System
The Council of Economic Advisers is
"A"
Title Guaranty & Trust
Gen'l Aniline & Film
J
.
Northern New England
an
the Economic Report, 1
group.,
If can
establish \ its
I
own
formulated and transmitted to the
I^aine R.R,
Aetna Standard Eng.
as
Punta Alegre Sugar
c a n
Warner & Swasey
what its work is.
political pres¬
v
Int'l Detrola
merce
or
budget
or program,
sure
Albert Pick
are
Lea Fabrics '
„
as
not
1
demo
and
Y. Security Dealers Assn.
St., N. Y. 5
Hanover 2-4850
Bell Teletypes—NY 1-1126 & 1127
37 Wall
out
leave.
Charles O. Hardy
ap¬
Preferreds & Commons
Chi., Rock Island &
Denver &
take
can
The advantages
in the
or
sHage
of the formulation of the program,
Machinery and Allied Products
Institute, New York City, June
19, 1947.
advantage
into a pro-
MICHAEL
Hartford
Louis:San Francisco
Louis
Southwestern
Western
meritsv
to
defend
Nobody
the
Report
comes
President's
the
and
Pres¬
WALTER
the Economic Report is
HEANEY, Mgr.
KANE, Asst. Mgru
a
carries out
is
controlled
the
by
Joseph McManus & Co.
New York Curb Exchange
Chicago Stock Exchange
Members
39
Broadway
Digby 4-3122
New York 6
Teletype NY 1-1610
Con¬
gressional tradition, which is that
the way to arrive at truth on any
subject is through holding hear¬
ings or
sending
out
question¬
naires.
Those
ods
research
of
democratic
be
with
organization
familiar;
GENERAL
the two meth¬
are
they
which
a
seems
to
not-
are
MACHINERY
the
ident's Report in the nature of
things cannot be sufficiently argu¬
methods of research that academic
mentative to clear up all questions
that may arise as to how certain
tions have found most
Probably they
are
to
what
the .report
ably deals with.
Now
of
the
that
we
come
avenue.
to
over
The
presum¬
and
professional research institu¬
find
our
end
Com¬
than
wants
what the
They
Joint
out
of
are
the
they
productive.
better designed
the
country
to find
are
out
country ought to want.
the natural outgrowths
democratic
process,
Troster,Currie&Summers
Members N. Y. Security Dealers Ass'n
74 Trinity Place, N. Y. 6
NY
Teletype
Pacific
Wisconsin Central
but
Detroit
-
Pittsburgh
G.A.Saxton& Co., Inc.
"1
i
N. Y.
5
-
St. Louis
(Continued,on page 36)
Brown
Bulolo
Paper
United Kingdmn 4 %
Co.
Ont.
Canadian
Solar Aircraft
90c
British
Department
V
Securities
WHitehall 4-4970
Teletype NY 1-609
Members IN.
$1.25
BOUGHT
—
SOLD
—
*Department
Goodbody & Ccl
Y.
Stock
Exchange and Other Principal Exchanges
115 BROADWAY
Telephone BArclay 7-0100
NEW YORK 6, N. Y.
*
;
Conv.
^Universal
QUOTED
90c
Conv.
*
Company
Preferred
t?
Winding Company
Preferred
on
&
Common
request
J-G - White & Company
INCORPORATED
37 WALL STREET
Reynolds & Co.
\
NEW YORK 5
^
v
Members New
120
ESTABLISHED 1890
York Stock Exchange
Broadway, New York 5, N. Y.
Telephone:
Teletype NY 1-672
Company
Conv. Preferred
*Twin Coach
Common
Scophony, Ltd.
Securities
Alloys, Inc.
Conv,. Preferred
PLYMOUTH RUBBER
Gaumont-British
Paper
$1.10
Common
'90
Rhodesian Selection
Gold
Minn. &
MARLIN-ROCKWELL
•Prospectus
70 PINE ST.,
HA 2-2400
1-376-377
Private Wires to Cleveland
Acme Aluminum
Abitibi Pow.
St.
the
We Maintain Active Markets in U. S. FUNDS
for
Missouri Pacific
St.
comes over
5
Securities
Pacific
Rio Grande West.
N. Y., New Haven &
he
on
Exchange
NEW YORK
HAnover 2-9470
Curb and Unlisted
professional body. Its staff
a program which nec¬
essarily is formulated to a con¬
siderable extent by people who
have no professional experience in
formulating such a program. For
the time being, at least, certainly
not
ait
the Secretary of Com¬
the Treasurer
has a
Economic
by Dr. Hardy be¬
fore the 1947 Annual Meeting, of subject
Chi.,. Milw., St. Paul & Pac.
even
mittee
Curb
Teletype NY 1-1140
recommendations got in there and
what they have to d<5 with the
President
*An address
"OLD"
know
appears
over
the
President
to
which the
position to
a
before
a
Con¬
gressional Committee and thrashes
a
cracy,
make
a
report
^TeenecmiCompaTi^
and
to
in
in
J When
you
likely
have
Argo Oil
Members N.
position to defend its work be¬
public or before Congress
ajnd /the public and Congress/are
_
Hood Chemical
I
a
fore the
much
inde¬
pendence
of
Foundation Co.
Time, Inc.
It
develop
The Council is not in
program
with about as
Moxie Common
■
•
President.
that
Newmarket Mfg. "•
-
program
scientific
a
program.
Detroit Int'l Bridge
think, are very great. The disad¬
vantages are after the program is
1923
York
WALL ST.
64
fessional
Boston &
•f;
and (3) the "negative"
Established
Members New
;
adviser to the President and not to Con¬
United Piece Dye Wks.
request
on
Frank C. Masterson & Co.
gress or the Nation. This system has its advantages and its disadvantages. One
of the setup is that the staff work of the Council of Economic Advisers heads
up
United Artists Theatre
{
City Units
*Prospectus
compensatory fiscal policy;
(Va.)
Stock
Tide Water Power Com.
Tudor
Hardy defines status of President's Council of Economic Advisers and his own Joint Committee on the
Economic Report. Latter's prescribed threefold performance involves interpretation of President's re¬
port to Congress, carrying on of research, and economic advice to Congressional committees. Cites
difficulties besetting our central economic planning, and our basic mistakes therein. Points out follow¬
ing possible basic approaches to economic programs: (1) maintenance of profit level high enough
to warrant employer-role
incentives; (2)
proach eliminating irrelevant remedies.
Teletype NY 1-1227
convertible
are
Dr.
Taylor Wharton Iron & Steel
U. S. Finishing com. & pfd.
Electric Bd. & Share Stubs
;
Broadway, N. Y. 5
whatever
to
U, S. (vongress
Actual TilaxkeXS Qu
branch offices
our
Henry Hudson Hotel Com. & Pfd.
The extremes
regimentations
markets
and
tries
in
more
into
on
•
-
REctor 2-7815
.
NY 1-1557
La.-Birminghamf Ala.
Direct wires to
By DR. CHARLES O. HARDY*
Staff
Exchange
the regi¬
war
tries than in others.
Exchange
120 BROADWAY, NEW YORK 5
;
Before the
war.
New Orleans,
Congress and Economic Sftahilify
Members
-
.
Stock
HAnover 2-0700
Tobin
PONNELL & TO.
York
St., New York 4, N. Y.
mentation of production and trade
had been
developed throughout
and
great
variety of the most desirable food
products
which are not being
Request
the
the
equipment capable of be-
war
disappear very rapidly if leader¬
ship would take the necessary
steps in each country to restore
political and economic order in
which the people have confidence
For
fish
American
machinery
but not being used because
people who need this equip¬
do
not
have
acceptable
money to buy. This delay in re¬
storing order .in production re¬
sults in part from the delay in
restoring order in governments
and a neglect to restore the free
exchange of currencies and free
markets.
These shortages would
lack
Europe
a
idle
is
the
mone¬
the
There
but
ment
raw
tary condi¬
tions,
trade
restrictions,
and
Bell System
iron
scrap
tion
'
New
25 Broad
conditions did not all arise out of
of
ing converted to civilian produc¬
jtomd
a
Many of these
shortages res u 11
largely
from
Members New York Curb Exchange
31 Nassau
as
a
the
States.
a s
materials.
Vanderhoef & Robinson
<
very
shortage of
working capi¬
Class "A" '
Members
great shortage in the United
of
abundance
economic
conditions
Steiner,Rouse&Co
destruction
war
tuated by the neglect to restore
stable economic and political con¬
ditions and free markets.
These
Also, in many
world there is an
reason.
same
parts
distrust-
1
u
Bought—Sold—Quoted
<$>-
governments
Savoy Plaza
pre¬
con¬
to nothing more than a shortage of food and capital
the United States to supply only a portion of these
production in other countries seems to be due to
including dis¬
ci
Louisiana Securities
multilateral trade and resort to incon¬
early restoration of free markets and
stable
SUGAR
*
./
Tel, HAnover 2-9300
Tele. NY 1-1815
r
i
REctor 2-8600
Bell. Teletype:
NY 1-635
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
Volume 166'
INDEX
Articles
and
The Pioblem of
News
(3)
Planning
LicHTtnsTEin
"
By W W. TOWNSEND
Page
Townsend-Skinner & Co., New York
The Taft-Hartley Act—Thomas J.
■;
The Technical Viewpoint
Cover
planning, and
points out two sets of factors, i.e., internal and external, each plan¬
Economic
Cover
of the Dollar
Riddle
Shortage
Mooney
dously expanded
2
2
The Problem of Planning—W. W. Townsend_-__:
3
prices
which
Outlook for Office Building
Financing—Robert H.
im¬
ture
9
courses
for
name
peculiar
and,
of
logicians /call
resulted
reasoniu g
nothing
one
13
from the gen¬
eral
to
the
specific,': de¬
Air Transportation Progress—Roger Babson
15
ductive
general,
4
SEC
Registration
No Immediate
"Dollar Crisis,"
of New York
—
6
8
Truman Vetoes Wool Tariff Bill
sit
12
Sumner Slichter Is Economic Consultant of Incorporated
14
—
U. S. Military Force May Be Necessary in Greece, Says
Warren
be
of
poses
Bank of Mexico Ends Gold
Overby Takes Office
Fund
18
We
Page
(Editorial)....;.. .Cover
Bank and Insurance Stocks
12
*
Canadian
Coming
in
the
20
'
Invest-
all
Dealer-Broker Investment
planning, the deductive
reasoning is much more
Recommendations
8
British
From
14
Washington Ahead of the
■
7
Bargeron
Indications of Business Activity.
46
Mutual
About
Banks
and
45
Utility Securities...,
intuition,
Estate
Securities
*
Corner....
Registration..
41
37
Published
Twice
page 9.
$38.00
per
fingers,"
some¬
year,
per
year.
The
'
*
Reg. U.
WILLIAM
25
B.
Bank
S. Patent Office
$25.00
DANAQPMPANY, Publishers
Park Place,
New York 8,
REctor
to
2-9570
N.
and
$25.00
Quotation
per
rate
year.
(Foreign postage extra.)
of exchange,
the fluctutations
remittances
in
for-
for
aign subscriptions and advertisements must
made
be
in
New
York
funds.
D.
RIGGS,
Thursday,
Business
July
3,
Manager
corporation
and
city
news,
bank
Bond & Mtge. Guar. Co. !
clearings,
Lawyers Mortgage Co.
T
Other
Offices:
135
S.
La
Salle
St.,
Chicago 3, 111.
(Telephone: State 0613);
1 Drapers' Gardens,
London, E. C., Eng¬
land, c/o Edwards & Smith.
Coypright
Reentered
by William B.
Company
1947
as
25,
1942,
York,
N.
Y.,
3, 1879.
ary
.Subscriptions
N. Y. Title &
Dana
the post office
under the Act of
at
at
based
in
United
Territories
Union,
intuition,
on
March
U.
Members
per
nothing
siorfs
more
of
bomb
of thin
ergy
of
released
into
mass
reasoning
Lea Fabrics
U. S.
-
Sugar
Susquehanna Mills
by the translation
DUNNE&CO.
motion
Members New York Security Dealers Asm.
should
represented by squaring the
locity of light.
be
ve¬
-
25 Broad St., New York 4, N. Y.
WHitehall 3-0272—Teletype NY 1-850
However, we must be on guard
respect to intuitive judg¬
ments in two respects. If, for any
reason, our emotions have become
entangled with, them they will
throw us for a loss, and until they
have been rationalized backwards
with
they simply cannot be justified to
anyone else,
as, no matter how
confident we may be regarding
the accuracy of our conclusions,
we simply never tell anyone else
—and particularly not a commit¬
tee—that we believe something
should be done because
it in
bones."
our
definition of
a
"we feel
Incidentally, the
committee may be
interest, in passing.
It is a
group of important people who,
individually, can do nothing but,
collectively^ can meet and decide
that nothing can be done.
And
of
because
that definition
seems
Missouri State
Life Insurance
BOUGHT
—
SOLD
—
QUOTED
FIRST COLONY
CORPORATION
52 Wall St.
New York 5,
Tel. HA 2-8080
to
N.Y.
Tele. NY l-242b
Established
1858
interest and amuse you I will give
a
couple more. A professor
who is quite willing to
*
H. Hentz & Co.
with the
Members
New
York
New
York
New
York
Stock
Commodity
Chicago
Exchange
Curb
Exchange
Cotton
Exchange
Exchange,
Board
of
Inc.
Trade
New Orleans Cotton Exchange
And other
Exchanges
..'y
Two
air than tfcte bypassing of
Punta Alegre Sugar
in
and
which the guess was that the en¬
Sets
of Factors
when such conclu-
the logical processes of
Haytian Corporation
rationalized
Mr. Einstein's guess with re¬
spect to the formula which finally
atom
1-714
ex¬
If the
was
serious
apparently grabbed out
Bell System Teletype N. Y.
If not, it should be under¬
taken, if at all, only in the hope
that the guess is a good one, as
In
are
Asm.
REctor 2-4500—120 Broadway
sound.
the
1908
Security Dealers
•
backwards into simple major and
can be used; as
produced
Y.
planning,
remembered
sets
of
also,
that
factors
it must
thefe
with
planner has to deal.
(Continued
in Planning
each
The first set
on page
N. Y. Cotton
Exchange Bldg.
NEW YORK 4, N. Y.
two
are
which
be
CHICAGO
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
-
32)
year;
S.
of
in
We are interested in offerings of
Stern & Stern
°
High Grade Public Utility and Industrial'
PREFERRED STOCKS
•
y
Newburger, Loeb & Co.
York
Stock
;
25
Home Cable Corp.
Spencer Trask & Co.
New
York Stock
?
.
St., N.Y. 5
Bell
Teletype
'
Exchange
Broad Street, New York 4
Members
TiL:
HAnover
New
York Curb Exchange t
135 S. La Salle St., Chicago 3
-
Tel.: Andover 4690
2-4300
WHitehall 4-6330
NY .1-2033
Conv. Preferred
V'l "
Albany
-
Boston
Teletype—NY 1-5
•
"*' Glens Falls
-
Schenectady
-
C. E.
Unterberg & Co.
Members N. Y. Security
Dealers Ass'n
61 Broadway, New York 6, N. Y.
Exchange
—
15 Broad
»,
& Trust Co.
4%
Members
New
Textile, Inc.
Public National Bank
Analyses on request
Mtge. Co.
Prudence Co.
Members
States,
and
$35.00
> be
N.
bril¬
problems of life which he has
carefully avoided by becoming a
professor—and a statistician is a
viewed with considerable -suspi¬ man whose principal preoccupa¬
tion is with the business of draw¬
cion by businessmen, who like tc
have a reason for everything they ing precise lines between unwar¬
ranted assumptions and foregone
do, but the chances are better than conclusions.
,
New
Subscription Rates
Possessions,
can
•
Established
Members
Lawyers Title & Guar. Co.
second-class matter Febru¬
"
Pan-American
intuition
tell anyone how to cope
;
CERTIFICATES
etc.).
news,
Y
J.K.Rice,Jr.&Co:
'
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
state
the
which
easily drawn.
a
has happened
Haile Mines
U. S. Finishing Com. & Pfd.
TITLE COMPANY
1947
|
records,
is
un¬
man
that
Gulf States Utilities
minor premises it
by which similar conclusions had
WILLIAM DANA SEIBERT, President
WILLIAM
and
perience
is
Record—Monthly,
(Foreign postage extra.)
Earnings
Record — Monthly,
Note—On account of
the
be
between
you
even
per,year.
Monthly
Y.
9576
HERBERT D. SEIBERT, Editor & Publisher
■
Other Publications
-
,
should
distinction
en¬
actions
dertaken only with money
can be lost.
'
■
FINANCIAL CHRONICLE
be
which itself is based on long ex¬
perience, often appear to have no
rational background and they are
48
of
Canada,
countries, $42.00
and
saying, "the feel of
in
|on
conclu¬
the
on
thing which anyone acquires if he
done anything long enough.
40
Dominion
Weekly
COMMERCIAL
The
be said regarding
judgment which re¬
the
thing
young
based
Conclusions
—
on
should
has
5
Industry
Tomorrow's Markets (Walter
''See article
kind
the
17
The State of Trade and
Whyte Says)
few
a
other way of
Salesman's
in
.
and
sults from association and absorp¬
tion through the pores and is an¬
18
Securities
Securities Now
words
the intuitive
8
Securities.'.
Railroad
how he is put together.'
see
At this point, also, a distinction
Trust
Companies
dynamic
are
old
should be made between brilliance
45
Washington and You
News
know the
best-
23
Prospective Security Offerings...
14
Y
Funds
works
Reporter on Governments..
Our
I
News—Carlisle
it
to
Real
View.
because
likely to do by taking him apart
Public
Einzig—"Dollar Diplomacy"—
pur¬
5
and
5
the
Wilfred -May...
Observations—A.
Our Reporter's Report
ment Field
for
8
•
m
Securities...,.
Events
Notes
a
get very far in reaching any conclusionsas to the things he is
Page
NSTA
we
saying that
study of mankind is man him¬
self, and if you are interested in
man's anatomy that is perfectly
applicable, but if you are inter¬
ested in man as a living, thinking,
moving mechanism you will not
Regular Features
As We See It
if
upon
the
33
——
—
that,/
with situations which
Sales, Reports Gamille Gutt.;._: 19
U. S. Executive Director of World
as
epi¬
method of
effective
Truman Signs Rent Control Bill; 15% Increase Permitted.._
policy,
a
out of
run
determine
stated
can
18
Must Respect Provisions of New Labor Law, Says Truman..
of
results
the other hand,
and
down
16
Austin
R.
seldom
policy on the basis of broad gen¬
eral principles, we are invariably
astonished at the number of epi¬
sodes
which provide their own
answers, when they are referred to
the principles used in formulating
the policy.
Therefore, and as'an
initial step in this discussion, "it
12
Sugar Futures Trading Resumed
we never
On
sodes.
1'
episodes
formulation
the
actions
sions of brilliance
conclusion
because
Says National City Bank
Investors
W. W. Townsend
from
of
Aeronca Aircraft Com. & Pfd.
the
than guess-work. No
policies based
liance
in
NEW YORK
WHitehall 4-6551
because
series
Outlines Plan for Security Offering..
WALL STREET,
to brilliance, most
from
more
that the attempt to evolve a pol¬
icy out of the consideration of" a
i
Statement—Dunstan
99
world's
f
or
inductive—and
we
all
previous experience
-
the
of
very nature it should
dowed or. subsidized and
and
from the spe¬
cific «to the
know
Files
and
should ^deprecate brilliarice,
it is guess-work ?by
but
reasoning
15
is
It
the
of
much
its
Bank
today
of the world's mistakes have also
"Back Dp the Truman Doctrine"—Alf M. Landon
^
province
progress is due
The
12
World
away
pockets jingling.
on
guess-work.
while
No American Imperialism!—Eric Johnston
•.
are
obsolete
walk
.
the other handt, is
the fruit of surmise and is another
fu¬
action.
Aldrich Reports on the European Economic Situation
with
and
times previ¬
many
.
Brilliance,
10
_
their
Telephone:
reached
The Price Level—Roy L. Reierson
Taft-Hartley Labor Law in Action—Rep. Fred A. Hartley.
office
bonds
Why don't you come in
help swell the numbers?
ously.
reached
regarding
Armstrong
with
Investors
Street.
our
and
—
been
nclusions
c o
9
are
Dark
stccks
is bound to put
power
Wall
99
flooding
policy
rates.
|
y
plications are
analyzed and
6
Bingham
b
facts
their
and
Operation—Edward A. Viner and
A New Cabinet Department—Jo
purchasing
rate,
planning, constructively, it is
first to discuss the anatomy of planning and the reasoning
processes
4
C. Edward Garnaus
excess
Scores low interest
with resulting rise in interest
up
necessary
.
A Plan for World Bank
supply.
money
—at
In order to discuss the problem of
Peruvian Bondholders Not Given "Square Deal"—Berkeley
Williams
CATS AND DOGS
Attacks economists' method of
planning and
an astronomical debt and tremen-:
and concludes pressure of
Congress and Economic Stability—Charles O. Hardy
IT'S RAINING
must resign ourselves to
says we
James D.
—
has to deal with.
ner
COMWUhr
AMD
Mr. Townsend discusses anatomy and
processes of
("Accumulation")—Owen K.,
i
Taylor
The
Anderson, Jr._
3
Worcester
Telephone BOwling Green 9-3565
Teletype NY 1-1666
,
4
THE COMMERCIAL & FINANCIAL CHRONICLE
(4)
4
Ward & Co,
Reports on the
European Situation
Says effect of Secretary Marshall's Harvard speech
ing" and is believed in
economic
Abitibi Power
Tells of plans of International Chamber
unity in Europe.
Chairman
of
Board
tional
Bank,
that
Secretary
Crowell-Collier
to the Economic and Social
speech
Chicago R. I. & Pac.
in
cil
which
he
to
Euro¬
nations
the
Hydraulic Press
Jack & Heinz
**
W.
given
W.
Aldrich
States,twas
broader
a-
,
was
Liberty Aircraft Prod.
tional
sessions
Montreux
the
of
Chamber
of
naturally
.were
existing
at
Europe.
situation
in
of
this
speech
in Europe
The British and
electrifying.
was
European
and
given it
a
than
justified.
committee
com¬
was
ers
of
Moxie
States
the
sections
and
fect
Nu-Enamel
Pathe Industries
the United
upon
of
Great
States,
Europe, as
a
in
Philip Carey
was
Germany.
At Montreux it
interpretation
By
on
to
the part of the United
the
nations
of
with
which,
financial as¬
necessary
thq
sistance of the United
mittee and to request it to report
again in the late fall on the effect
of the
policies which are cur¬
being put into effect in
Germany, such as the merger of
Purolator Prod.*
ficiently
new
rently
Remington Arms
Standard Milling
Stromberg Carlson
TclCci
unity
the
Polaroid
States, will
bringing about ultimate
economic unity in Europe, which
com¬
British
Zones
£— J
Taylor-Wharton*;
Textron-Pfd.
Upson Corp.*
U. S. Air Conditioning
United Artists*
United Drill & Tool "B"
Vacuum Concrete*
Warner & Swasey
under
United
the
States
Byrnes-Bevin
Agreement. At the same time, it
was decided to revise the Com¬
mission of the Chamber on Europe
as
whole,
which had existed
prior to the war. It is significant
a
that
Tokheim Oil Tank
and
this
,V Commission
T
includes
representatives of sections of the
International Chamber of Com¬
result .in
(with the African Colonies
and
dependencies of the European
countries), will result in a suf¬
omy so
balanced
course,
that this Com¬
mission-immediately institute a
study of the needs of Europe for
of
over
time
an
will
be
Standard Gas Elec.
Tide V/ater Pwr. Com.
tProspectus
*Bulletin
or
United States of the most favored
nation policy in connection with
ultimate
elimination
on
"thank
is
false- be-
it
cause
c
e
1
a
Thursday, is dishonest and disgraceful., The offer
1
"'■ -'/O'
'a''.
most immediately after they were
.
the
s
sold
of
bonds
statement
o
get
have
f
ported,
120 BROADWAY, N. Y. 5
REctor 2-8700
N. Y.
1-1286-1287-1288
?
about
m*'
pay
ability
which
is
in
direct
p u
b 1 i
trade
s
h
e
m
j
the default on
only be attrib¬
unwillingness to recog¬
nize in full the validity of obliga¬
tions incurred by a previous ad¬
ministration
it being charged
that members of the Leguia fam¬
ily had personally profited from
rW
d
the sale of the bonds and from the1'
balance
figures. While
Berkeley
Williams
Peru's selfish-
Central National
22 East 40th
Corporation
Telephone: LExington 2-7300
ness and lack of
gratitude can be
overlooked, this bold piece of at¬
tempted thievery
of
American
citizens
Street, New York 16, N. Y.
by
Teletype: NY 1-2948
our
calls
for
vigorous
Government.
action
The holders
bonds stand high up In the
People.
public works for which they had
been issued"; an equally compe¬
tent authority has reported: "It is
my opinion, however, that a very
large share of the blame for con¬
tinue default does not lie with
Peru
Nothing
has
the bonds since al-
Bsttfd 6111
CORPORATION
prosecute claims of United States
citizens with the diligence which
believe
Buff. 6024
on
.
Bos. 2100
ex¬
there's
Maybe the lamented author of
SECURITIES
Dealers Association
New York
been
saying that "where there's a will,
a way."
INDUSTRIAL
request
Seli^man, Luhetkin &> Co.
41 Broad Street
have
fectly valid obligations and con¬
veniently forget them. It's an old
MINING and
4, N. Y.
"Our
Enemy,
e
" v
■ •
State"
was
G. F. HULSEBOSCH & CO.
62 William St.
New York 5, N. Y.
Telephone
Teletype
WHitehall 4-4.845
Branch
Hudson
St.,
NY 1-2613
Office
Jersey
City,
N.
known
facts
in
a
'
••'
Some
113
the
holder of Peruvian bonds.'
•'
Members New York Security
should
So both countries stand
able but unwilling to help the
holders of these admittedly per¬
4% Convertible Debentures due 1956
Memorandum
on
Government, which has
the
in
pected."
GRAHAM-PAIGE
MOTORS
Peruvians at all, but
or
own
our
past deliberately blocked
attempts of private holders to take
list of effective action and has failed to
of $85.7 million Peruvian External
been paid on
can
to
...
kr
conflict with
NORTHERN INDIANA PUBLIC SERVICE CO.
INCORPORATED
& Los Angeles
ENTERPRISE PHONES
part,
uted
a
to
Direct Wires To
Fnllft., Chicago
"In
the dollar debt
makes
statement
1926
.Members N.Y. Security Dealers Asstt.
only to try to find out why.
competent authority has re¬
One
I
est.
but if anyone wants to
first class runaround they
a
It
request
Ward & Co.
by Peru to U. S. citizens in
1927-28,
debt outstand¬
at Net Prices
say
■
con-
unt
a m o
f
ing is untrue.
Bought—Sold—Quoted
even
,
The current offer of the Republic of Peru to American bondhold¬
ers, announced last
Forgotten
upon
nations that do not
to
,
Editor, Commercial & Financial Chronicle:
47)
page
money
you."
repatri¬
ated; therefore
inations in foreign trade.
(Continued
pouring out taxpayers
discrim¬
of
Upon Request
Circular
Berkeley Williams says offer to American Bondholders is dishonest
and disgraceful.Wants State and Treasury Departments to cease
re¬
quired to support it.
By others
the speech has been:
thought, to
indicate an abandonment of the
ESTABLISHED 1927
Soufhwest Natural Gas
*
,
Complains Peruvian Bondholders
|
Not Given - Square Deal"
indefinite
not
Derby Gas & Elec.
Federal Water & Gas
Puget S'nd P. & L. Com.
Letter to the Editor;
econ¬
EASTERN CORPORATION
Amer. Gas & Power
Cent. States Elec. Com.
I married my husband,
didn't I?"
that continued dollar sub¬
sidies extended
period
over-all
trade agreements, and of attempts
merce
from
Eastern
European 'which have been instituted by the
United States to bring about the
countries and from Italy. It is in¬
tended, of
"Could I go for something common?
Europe,
tion of Europe as a whole
pow¬
decided to continue this
broader
have
including Great Britain, to de¬
velop a plan for the reconstruc¬
the ef¬
whole, of
on
policies of the occupational
ers
vitation
Britain
with
perhaps
some writ¬
it has been considered an in¬
posed of members of its European
sections, together with members
5%s
i\
received
press
enthusiasm
Earlier in the year the Chamber
had adopted a report made by a
representative
Missouri Pac.
international
"Immediately after the meeting
Montreux, Secretary Marshall
speech at Harvard. The
effect
very
existing
economic
barriers to
made his
at
much concerned with the
policy
trade.
Interna¬
Commerce
of the
of removing as rapidly as possible
:::
v
Commerce
very
before, its support
interpretation
justified.
Reporting on the
European situation, Mr. Aldrich
stated:
the
The Inter¬
of
carefully pre¬
pared critique of the Charter and
expressed, as it has many times
received
perhaps
Chamber
adopted
from
than
Majestic Radio & Tel.
Michigan Chemical
Minn. & Ontario Paper
■
as¬
United
"The
1
considering the proposed
World Trade: Charter.
get
with enthusiasm and
Lanova*
]
Geneva which
meeting -at
has been
.
national
to
sistance
Hoover Co.
j
deliberations of the delegates
the
at
habilitation in
Higgins Inc.
&
the
up :*
financial
Copnfor its
Montreux also
order
Gt. Amer. Industries
Old Pfd.
"The meeting at
plan of ret
a
|General Tin
draw
Nations
United
the
followed with the greatest interest
get together,
and
of
consideration.
urged
pean
General Machinery
■
-
Marshall's
Harvard
Cinecolor
•
continuing Commission which
report to the International
Chamber of Commerce, from time
to time in the future, and that
these reports will be transmitted
a
will
reported
Buda Co.
?
j
that it Willi be
reconstruction and
the Chase Na¬
Brockway Motors
i
■..;U
of
the
Bendix Home App.
:
STOCKS
"electrify¬
was
portending ultimate
as
Returning from a liieeting of the International Chamber of Com¬
merce at Montreux, Switzerland, on June 30, Winthrop W. Aldrich
American Hardware
,
quarters
some
of Commerce.
-
BUSINESS BUZZ
Aldrich
mm*
:
Thursday, July 3, 1947
the
case
9
are:
<!) In 1931 and 1932 the U. S.
Senate Committee
on
Finance in¬
vestigated their sale and in a fourr
volume report entitled "Sale of
J.
-
(Continued
on page
17)
-
<.
Volume 166
Number 4608
THE COMMERCIAL ft FINANCIAL CHRONICLE
(5)
(r
-
Steel
The
COMING
Production
Observations
Electric Output
Carloadings
"
In
Commodity Price Index
sss==
Auto
Industry
Failures
.
JJ
:
The
.C".: ,rr.;.;
impact of
a
But now_ that
disproved, the public can be made to comprehend
more fully the equally serious implications of the
President's tax vqto.
strike in the soft coal mines upon the
would indeed be tremendous, since the
Serious
m;-'
% 5
Marxist class-war line just as it
doing in its labor position.
If Mr.
Truman wants to save his political skin from the
has
< :;f
&c"
//;»
.<v-
pocketbook
our
to
come
economy
A. Wilfred May
another
dose
-
of
.
A concrete
illustration of the effects of such
a
coal
against class, to
shortage
at home.
be had from the picture of the nation's steel industry which
for the last twenty-five weeks had
operated between 90 and 97 %
of capacity and has nowr found it
necessary to cut production
may
schedules to
of
an
rate
average
of
.holiday ends, were blamed for the loss in steel output
by the American Iron and Steel Institute.
The present closing of the mines marks the fourth time in
twenty months that steel operations have been affected by shut¬
downs at the coal mines. The previous shutdown occurred at the
close of November and during the first two weeks of
December,
The
return
coal
situation
further complicated this .week with
by the Government
the
Monday, last, of the country's 2,600
on
mines to the operators.
War Labor
coal
The properties
were
seized under the
Disputes Act on May 21, 1946 by the Government and
during that period the miners worked without a contract.
'With control of the mines relinquished by the Government,
the
expiration
and the union
of the agreement
today leaves
legally since the miners
/The problem which
a
have
the
Government
force the miners to return to the
pits and mine coal for
ators with whom
the
they have
'
how
is
private
to
oper¬
contractual relations, and, insofar as
no
application of the Taft-Hartley Labor Relations Act bf 1947 in
the present
crisis is concerned, it is reported that Attorney Genera
Tom C. Clark* is of the present opinion., that the
effect the coal situation.
*
,
INDUSTRIAL PRODUCTION
Over-all industrial
week at
mented
ment.
high levels,
by
many
j
new
no
^
t
MAINTAINED
law. does
AT
HIGH POINT
pas
students, resulting in seasonal gains in total employ¬
Increased pressure
of steel
ery
as
the
exerted
was
threat
mines became imminent.
of
an
with
some
extended
manufacturers
slight falling off in
new
walkout
held
cancellation of back orders for electrical
were
able to shorten former
mills
was
were
"-V; >/
steady
in
the
».
Sept.
20,
1947
Tax
corporate levy, and for the elimination of excess profits taxation of
$3 billion three months thereafter., So it must be realized that
the
fate
of
Knutson's
Mr.
bill, or of any other early
reintroduced
exclusively
up
in
1948
Bell
Telephone of Canada^
Canadian Pacific Railway
Consolidated Mining & Smelting
Co. of Canada
Distillers
*]!'•'
Gooderham & Worts Ltd.
Shawinigan Water & Power
HART SMITH & CO.
52 WILLIAM ST.,
week
result of
„ITew York
HAnover 2-0980
1-395
Montreal
Toronto
upshot, if any, between the President's social
Republicans can get a two-thirds majority
include
a
reduction in the surtax
Siamese, Arabian, Iranian
Sterling
split
single
38% elimination of double-
ceiling of about 50%; permission for ntiarried couples to
one
N. Y. 5
Teletype NY
the
The goal for the latter will
a
their conibined
rate,
the
whatever
income; confinement of corporate taxation to a
reduced
taxation of
delivery dates.
be
below
the
present
corporate dividends; alleviation or elimination
Bought and Sold
of(poten¬
Belgian, Swiss, Scandina¬
corporate earnings; and a hiking
maintaining full-time operation schedules during the
of excise taxes.
How much of this goal can
the
minority opposition is problematic.
was
output
was
high.
No
incre^e in shoe order
evident and production in leather tanneries contin¬
manufacturers, it
was
noted,
were
an
usua
<
(Continued
are
In any event,
foreign aid to
prominent Republicans
important key will be furnished by the amount of
which
producers^
planning for the
veto-backed
vian Securities
be put through against
we
become committed—unless, as some
suggesting—our outlays abroad be placed in a
dinary" budget.
'
;
:/
F.
separate "extraor¬
York 5, N. Y.
Telephone HAnover 2-8681-2
\
.
Wanted
BLEIBTkEU & CO., Inc.
79 Wall St., New
34)
on page
s
■
,
Specialists in
,
Dravo
,
Corporation
Domestic, Canadian and
Philippine
Mining Issues
and
i.h
Bulolo Gold Dredging,
United Artists Theatre Circuit
'
Rights
BOUGHT
: ;
Corp.-Seagram, Ltd.
Hiram. Walker-
American Maize Products
q
Chi¬
majority for his bill this session, the nature of tax relief
will
and
try
Arden Farms Co. $3.00 Part. Pfd.
■
of
Aluminium Ltd.
to the Congress.
Assuming the inability of Mr. Knutson to win a veto-overriding
behind.
a
Club
Relief
with a surplus for the first time in 17 years; and.with an ad¬
mittedly much larger balance assured for 1947-1948, bad faith in the
rate to
As
(Chicago, 111.)
Municipal Bond
cago Outing.
year
in
the
(Boston, Mass.)
National Security Traders Asso¬
ciation annual convention.
,
for
tial penalties for non-distribution of
Jf;.
r
buffet dinner on July
$he Savoyard Club, Detroit.
Aug. 10-14, 1947
deflationary effects. For these and other excuses they have
stoutly asserted that; "now is not the proper time." But in view
of the Federal Government this week having wound up its fiscal
^ ;V/, s/../.:///
vacation shutdowns.
;
at
Congressional leaders who have this week been formulating
on the subject are undoubtedly 100% correct in assuming
two-thirds
coal
motors, manufacturers
ued to decline with the slump in demand from shoe
Shoe
..
Possibilities
Immediate
reported that pulp, paper, cotton, textile and lumber
week and that total
volume
C
orders apparent.
some
It
22, 1947 (Detroit, Mich.)
party and
21
and
,
In the metal products field manufactur¬
■„
machinery
...'•
Llanerch
at
Security: Traders Association of
Detroit & Michigan Annual Sum¬
mer
Golf
Party, Orchard Lake
Country Club.
Also a cocktail
Bell
Steel.
of
.
July
that no cooperation can be expected from Mr. Truman toward put¬
ting' through any tax relief whatever this year.;
He, as well as
Secretary Snyder, have stated their opposition to a lowering of
wartime rates both because of its alleged simultaneous inflationary
steel mills for the deliv¬
on
ing continued to be hampered due to the limited supply of sheet
Output
'
remedial legislation, will be
'y'v/^
,
demagoguery arousing class
great harm abroad as well as
outing
summer
Country Club, Havertown, Pa.
tactics,-must surely'be sus¬
pected. Incidentally, even under Mr> Truman's aegis, "the time was
ripe" back in August, 1945 for a tak reductioh of $5billion in the
the labor force aug¬
saw
Philadelphia Silver Jubilee and
Administration's arguments, and stalling
output and employment continued the
The closing of schools
The
strategy
employer.
no
confronts
now
personal
■
'!■'
The
Government
which is impossible to bridge
gap
now
between the
Investment Traders Association
of
tax policy
a
o.:;"
its legal authority according to reports, is understood to believe
that
July 11, 1947 (Philadelphia, Pa.)
.
reduced 20 to 30% for three weeks.
were
was
j
\
our
ciation annual outing at the Wood¬
land Golf Club, Newton, Mass. •
Nov. 30-Dec. 5, 1947 (Hollywood,
which has been successful in increasing by 10%
Fla.)
/;•■' ,,</'/;/ v,./;\
the share of wages in the national income; thereby using tax policy
Investment Bankers Association
as an instrument for redistributing the national wealth (?).
Annual Convention at the Holly¬
Another Socialist precept which has been increasingly employed
wood Beach Hotel.
by our New Deal-ish administrations has been inequitably to impose
taxation without representation.
Instead of following the technique
of spreading tax burdens equally among all the people, we have more
With Flynn & Levitt
and more permitted the majority of our population (electorate) to
Special to The Financial Chronicle
impose on the minority tax penalties which it refuses to assume for
LOS
ANGELES, ' CALIF. —
itself.
Quentin R. Smith is with Flynn &
Another bad practice pursued more and more, has been to follow
Levitt, 411 West Seventh Street.
the temptation—obviously most attractive to voters—for lawmakers
of one generation to charge their tax bill to future generations rather
than to their contemporaries.
Not only does this—accomplished by
financing government expenditures rather than by businesslike payas-you-go taxes on all members of the community—forestall taxation
by representation, but removes the making of controversial decisions
regarding specific expenditures from those paying the bill—another
instance of Socialist central planning.
tuted
72% the present week because,
the vacation
1946, when operations
its
Socialist thesis the tax reduction veto philosophy follows
the British Labor Government's boasted achievement of having insti¬
The stoppage of coal mining
during the vacation period coupled
with the uncertainty that mining will be resumed next week when
t>
on
In its
shutdown in the soft coal fields.
a
raid
his
in
base his own legislation on technical changes
incomprehensible to the public. Rather must he
now premise it on the "social reform" motive—
holiday
a close, a strike will ensue and cause
grave harm
which at present is beset by many problems in its
struggle to get back on an even keel.
;
to
the
over
embodied
almost-unprece¬
veto, he cannot merely re-introduce to
next January's Congress the Same kind of legisla¬
tion which he,has just
emasculate^. Nor can he
r
a
wrath
dented
Should the mine workers and operators fail to reach an accord
new contract on
or
before July 8, when the vacation
on
will have
been
electorate's
reduction of 30%.
The immediate effects of such cur¬
have already struck a blow at the vftal nerve center of
whole.
the
because
furthering the
~
a
as a
/
.
Mass.)
Boston Securities Traders Asso¬
25th
Administration,, in its
imminent championing of soak-the rich, will be
;Vf
opera¬
approximately 45% of capacity and the Wheeling Steel Co.
...
(Boston,
July 10, 1947
the smoke has cleared away from the latter, and the
';,/• A .l'i:
■
OUTLOOK
dire predictions of civil war or worse have been
tions to
industry
THE DISMAL TAX
due to the legislative tim¬
ing—the President's veto of the tax bill was largely overshadowed in
the public's attention by the sensational Taft-Hartley labor imbroglio.
immediate effects of the miners' vacation
period have already caused
the steel mills to curtail
output to a substantial degree in order to
conserve their
dwindling coal stocks.
In the case of the Carnegie-1
Illinois Steel Corp., it has announced that it will cut back its
tailments
.
inexplicably—although partly
general
country's industrial output
will effect
J
..
-
Upon the outcome of the coal situation rests in great measure the
economic well-being of the nation which is
endeavoring through con¬
tinued high production to
get back on the road to a more normal
.
Field
Production
-Business
Quite
..
Investment
By A. WILFRED MAY
Food Price Index
economy.
EVENTS
Retail Trade
State of Trade
and
5
—
SOLD
—
Ltd.
"Kerr Addison
Big Wedge Mines
QUOTED
FREDERIC H. HATCH & CO., INC.
BROADWAY. NEW YORK 5, N. Y.
Telephone: BArclay 7-5660
'
Far East
Bought—Sold—Quoted
New York Hanseatic Corporation
120
f
Common
Established 1888
N. Y, SECURITY
Teletype: NY 1-583
63
Well Street, New York 5, N.
Y.
Oil
{.' MAHER & CO.
i
|
62 William St., New York,
N. Y.
Tel. WHitehall 4-2422.
-
DEALERS ASSOCIATION
:
Branch
Office
,
Bell Teletype NY 1-897
113 Hudson St.,
Jersey City, N. J.
%
>w-
:'P ?T,P
'-n.-tWlTM -M; Hi
THE COMMERCIAL & FINANCIAL CHRONICLE
(6)
«
Thursday, July 3, 1947
World Bank Files SEC A Plan for World Bank
Operation
By EDWARD A. VINER and C. EDWARD GARNAUS
Registration Statement
•
-
Hopes to begin public distribution pf its bonds July 15. Offering
and 25 year maturities.
SEC promulgates special
will comprise 10
exemptions to aid distribution.
International
The
Bank
for
Reconstruction
of bonds:
and
of
of allotment.
$250,000,000
principal
amount
its
of
bonds, the in¬
stitution
an¬
nounced at its
to
be
worked
New York of¬
fice June 30.
date
Some of the
will
comprise ten2% %
y e a r
bonds, and the
E. Fleetwood Duns tan
balance
open
the
of
25-
3% bonds.
Items still left
include the breakdown of
two
maturities
by principal,
BALTIMORE
Bayway Terminal
Davis
Coal
&
program.
at
Operation of the NeW World Bank alorg traditional lines can ^ardly accomplish one
great needs of the world today—-that is, the opening up of raw materials of the
world to all countries.
Without this, one of the primary objectives of the Bank,
the development of productive facilities and resources in the
less
of
the
tries would
will
because
subsequent
lacking basic
be
powerful and the dependence of countries
materials would increase.
r
more
raw
.
of
banking and how
of the
extended
Bank's securities.
Subscriptions will not be ac¬
cepted by Bank directly from in¬
vestors, officials emphasizing the
fact
that
the
greatest
possible
number of security dealers—num¬
bering almost 3,000—will partici¬
pate in the offering.
Dealer
Remuneration
Dealers will be allowed
con¬
a
Operation
of
Required
What changes must be
-
■
case
offering
inaccessibility of basic
economically strong and economically weak countries, power
politics on the part of countries owning strategic materials
would become
registration
the
between rich and poor coun¬
of the
Because of the division of the world between
New Machinery
.'Completely new
be required in
County Coal
continue
materials.
raw
effective
SEC
developed countries of the world could not take place.
The economic class distinction
out,
the
as
will
Coke
/
;
asked for.
,
Franklin
aimed
acceleration
each
can
that safe
so
made in the ideas of traditional
the machinery of classical banking be
loans-can be made?
*
With
the proper
machinery, it would be possible for the Bank to make loans
in almost unlimited amounts and be assured that they would
be
Edward A. Viner
repaid.
The
demonstrated
of
assurance
repayment would
that the investor would
so
easily
be
them.
,
:
"
stein bros. & boyce
Members New York & Baltimore Stock
Exchanges and other leading exchanges
S.
CALVERT
of
1%
of the
prin¬
cipal amount of all 10-year bonds
and V2 of 1 % on all 25-year bonds
sold
6
%
ST., BALTIMORE 2
BeU
Teletype BA 393
■'
New York Telephone BEctor 2-3327
to
them.
No
part of such
be reallowed.
commission may
To facilitate this
operation, Mr.
Dunstan announced that the Bank
has
just
with
<
:
supplemented
its
staff
20
experienced
securities
(Continued on page 40)
'
classical banking should be extended to include the following ideas:
(1)
Specific purpose loans as against general purpose loans;
(2)
Settlement of international loans by payment of goods in kind where exchange is not available.
or desired
by the debtor nation;
f /
,
'
(3)
Mutual insurance reserve to pay for operation of machinery required for settlement of debt
in goods in kind as well as other expenses;
(4)
Each international loan to be of a large size and collateralized by a lien on the material and
products of each specific project;
.
MU!i!iiiimiiii|uiiiiimiiiiiiiiiiiiiiiir
(5)
D
&
signed by the government and
voted by the people in an election
similar
to
voting approval
of
special projects at state and mu¬
nicipal elections by the people of
The
mm
Bassett Furniture Ind.
Dan River Mills
Boston & Maine KB.
;
Prior
Preferred
—
Traded in Round Lots
Walter J. Connolly & Co., Inc.
24 Federal
Street, Boston 10
TeL Hubbard 3790
Tele. BS128
★
—
receivables
of
each
project to l?e us£d as collateral
a
majbr loan and- to become
for
alized
A
LD 11
-
loans
rate
are collat¬
receivables
on specific projects to
be sold to
long-term investors through in¬
vestment banks, at a rate of in¬
which, in turn,
with
commensurate
the
prevailing rate
of interest
other long-term loans;
for
charged by the World Bank
loans to nations, viz: 2%
designated as insurance and
is to be placed in an insurance
reserve fund;
(11) World Bank bonds equal
its
on
to be
all
to
be
OIL EXPLORATION
ST. LOUIS
We
believe
some
oil
every
investor
equity for
to
the public .in
as
countries as possible;
(12) Each World Bank bond to
guaranteed
j
Preferred
and
will
be
detailed information
ers
Iowa Power & Light Co,
3.30%
pany,
should
upon
Exploration
pleased
,
own
to
Com¬
to interested
(d)
deal¬
request.
Approximate Price 4 %
street
J
Meredith
Publishing Co.
Common
Stock
EQUITABLE
DES
MOINES
Phone 4-7159
BUILDING
9, IOWA
ST.lOUTSI.MO*
Members St. Louis Stock Exchange
Comstock & Co.
CHICAGO 4
R*II Tele. DM 184
231 So. La Salle St.
Dearborn 1501
Teletype CG 955
LOUISVILLE
SPOKANE. WASH.
American Air Filter
serve
fund.
-
-
debtor
governments and approved by the
respective people in a duly
held
furnish
(e)
509 olive
following
election.
By 100% of the receivables
of
specific projects, each
guaranteed by the other.
By a lien on the machinery
and material used in all of
the projects covered by a
major loan.
(f) By a lien on all of the prod¬
ucts of each project.
(g) By an export reserve fund
to be kept on deposit with
the Bank, consisting of 1%
or more
of all the exports
of the countries indebted to
,
NORTHWEST MINING
For Immediate Execution
Consider II. Willett
or
Girdler Corporation
of
Murphy Chair Company
Reliance
Varnish
Wisconsin Electric Power Co.
of Orders
Quotes call TWX Sp-43
Exchange from 10:45
A.M.,
Pac.
Std.
Time:
on
to
(13) Coordination of the Bank's
with the commodity ex¬
changes of the world;
(14) Creation of many new fu¬
tures contracts of generally used
program
producers' goods and consumers*
goods;
(15) Creation of a committee to
select a definite list of such prod¬
ucts feasible for trading on com¬
modity exchanges which may be
by a nation in payment
tendered
of
its
debt;
(16) Coordination of the.
Bank's
with the stock piling
of each nation;
■ ■
(17) Coordination of the Bank's
program with a world relief or¬
ganization.
program
program
International
Banking Methods
In order to make
the Bank to
plish
was
the
it possible for
succeed and accom¬
for which it
purposes
formed it will have to
break
the narrow limits of
traditional banking methods and
embrace the broadest aspects of
from
away
requirements for fi¬
production and dis¬
tribution of producers' and con¬
sumers' goods.
It will have to
adopt the detailed banking pro¬
cedure of many institutions which
have been for a long time on the
the necessary
the
nancing
periphery of the banking com¬
munity and whose functions the
have
banks
have
for
years
many
These institutions
been functioning successfully
frowned
upon.
outside the classical banking com¬
along new paths which
recently the major banks
have been trying to follow.
The
detailed and finely developed ma¬
munity
(when distributed)
at
other hours.
BOUGHT
SOLD-
chinery of the instalment and
factoring institutions in the financ¬
ing
of
inventories,
machinery,
equipment, and even plant and
property, should be adopted by
the World Bank in its operation.
COMMON STOCK
Floor
11:30
Sp-82
country's debt to the Bank.
only
SECURITIES
American Turf Ass'n
of the
certain percentage
Precedence for New
respective
I
INVESTMENT SECURITIES
Stock
the
in
(c) By the Bank's major loan
agreements signed by the
<
Stix: & Co.
to
By the Bank's entire capital.
(b) By the Bank's mutual re-
speculative profits.
We have selected Oil
in
are
resold
„
Continuing Interest
Bank's loans
Bank; this reserve to re¬
main fixea when it reaches
a
(a)
Common Stock
INCORPORATKD
the
ways:
COMPANY
WHEELOCK & CUMMINS
of
many
jiiiiiiiiiiiimiiiiimiimiiiiiiiiiiiiiii
DES MOINES
t
(9) All loans made by the Bank
to carry a 6% interest rate;
<10) One-third of the interest
eralized by long-term
the
Bank
bjN^rt-term receivables
shor,t-term paper;
be
Lynchburg, Va.
World
specific projects to be sold di¬
to
banks,- insurance com¬
panies and other institutions at a
rate
of
interest ; prevailing for
on
,
Tele. LY 83
Shortjierm
World
Bank
bonds collateralized by long-term
terest
Scott, Horner &
Mason, Inc.
(8)
bonds collateralized by short-term
loans which, in turn, are collater¬
rect
Sfatesj
serially;
(7)
Long-term
American Furniture Co.
f
Each international loan to
be
due
Trading Markets
,
#
(6)
LYNCHBURG
QUOTED.
A
Co.
good part of the machinery of
Housing Administra-:
the Federal
Standard securities
!0!I BANKERS BOND
Incorporated
lot Floor, Kentucky Home Life
Members Standard stock
of Spokane
Brokers
Bldg.
LOUISVILLE 2, KENTUCKY
Long Distance 238-9
tion, of the Reconstruction Finance
Corporation and the Export-Im¬
Bank should be adapted to
the World Bank procedure.
The
COllPORATION
£2-
_
Bell Tele. LS186
-
Dealers
-
port
Exchange
Members:
Underwriters
Peyton Building, Spokane
Branches at
Kellogg, Idaho and Yakima, Wn.
5
The machinery of
the United
BOSTON
;■■■■'.
to all people willing
put to use; all resources of the world, wherever tney may be, could be opened
use
Garnaus
All savings could be
fidence in investing his money abroad.
and able to
Edward
C.
have complete con¬
.
cession of
Common
'
serial and short-term; the oiner long-term
registration date.
If the Bank is
in shape to engage in active sell¬
ing by July 15, it is assumed that
will
consist
year
one
Mr
Dunstan stated that July 15 is the
issue
-■
■
of the
Plans ,for the initial distribution
were
outlined by E. Fleetwood
Dunstan, director of marketing.
Pointing out the numerous me¬
chanics
V
ly productive projects for reconstruction and peacetime development.
("World Bank") has filed with the Securities and Exchange Commis¬
sion a
regis-&
*
tration
state¬ amount of each offering, the offer¬
ment covering ing price of each issue, the re¬
demption prices, and the method
..
obligations, based exclusively on economical¬
Hold plan would allow unlimited
development of sound projects wherever located and can* be coordinated with materials stock piling
Development
its initial issue
Of Edward A. Vincr & Co.
'7
...
Writers, contending, because of present unstable and unbalanced economic conditions throughout world,
the Bank for Reconstruction and Development can not operate successfully along traditional credit
lines, propose for it a system of loans based up in repayment in kind. Advocates issue of two classes
225 EAST, MASON
PHONES—Daly 5392
Chicago
Stock
ST.
Chicago:
exchange
MILWAUKEE
State 0933
(2)
Teletype MI 488
machinery and facilities of the
commodity exchanges could be
used
and
extended.
(Continued
The
on page
expe-
24)
Volume 166
Number 4608
T HE COMMERCIAL & FINANCIAL
lifted
permit occupants
eligible.
Another stated purpose of sub¬
sidized housing was the elimina¬
tion of slums. Partly due to the
From
Washington
Ahead of the News
doubt, this has been, a
complete flop. The law requires
that
every
community
getting
funds for a housing prbject must
eliminate the equivalent of slums.
Only in the case where the new
Some
of the most interesting reading available in the
country
confidential' report to the House Appropriations Committee
by its special investigators on subsidized housing.
It seems a shame
that the committee doesn't publish it as a public document
except
that then it probably wouldn't get much
publicity. It is something
project is erected in
a
should
be
generally available
Taft-Ellender-
Workers'
their
CIO
found
the
central
ice
of
housing
like
i
econom
t
s
the
office
second
a
their leaves.
s
and
have
the
ainother
m
e
d
n
u
o
s
int
e
with
n
i
s
v
plicant for
e
vehicles.
The
Federal
lie
its
such
worst.
is
In
seven
or
dealing
bureaucracy
the
hordes
are
holding
agencies
housing,
there
six
some
Federal
with
Seven
Bargeron
Authority,
for
company
other
Carlisle
Pub-
Housing
experts
and
specialists—procurement experts,
experts, paint and varnish
experts, home economics experts,
gardening
experts,
recreational
experts, legal experts, erosion
most
kind
of
staff
ex¬
conceivable
every
is
This high priced
duplicated in nine re¬
offices.
Even in the cen¬
gional
tral
expert.
office, the activities of vari¬
divisions of experts overlap.
ous
In
addition, all but two
or
three
States
have State and municipal
housing authorities and they are
staffed with experts, who have as
little to do with the Federal ex¬
perts
as
possible. They little avail
themselves
of
the
abundance
of
services which the Federal agen¬
cies have to offer. Yet there they
The State and
are.
agencies
show
tion.
run
local housing
practically all of the
the
original inten¬
They complain the Federal
as
was
always trying to
theories
its
cram
down
their
throats.
you
can
thinking
Federal
gators
them
the
or
will
Each
official
or
claims he is interested in
ticular discussion.
per
of
the
subsidized
The
in
their
life
and
its
est
little
or
no
living in the
them
or
to
even
ing
"Whatls the
collect
tak¬
use
it
to
crowd
found
seemingly
at
imagine the type
come
when
from
the
the
investi¬
the
FPHA
the
mercy
to
be
the
of
Commy dominated United Public
ford Harris is
are
rated
vested
interest
on
sands of others in
stances.
what
The
its
There is
Federal
as
constitutes
a
sociation of
in
many
our
WE
265
Exchange
Financial
Street,
members
J.
THAT
schlosser
Robert
W. Fisher
HAVE
the
firm
Douglass.
announces
and
name
)
NEW
JULY
V
,' '
A
Bourbeau
will be Nelson
The
John F. Reilly
has beeri admitted to
our
firm
as a
the
general partner
and
"i
Mr. Raymond deClairville
Member New York Stock Exchange
firm
has retired
,
as a
'
<
'
general partner
Member New York Stock
firm, which will act
as
dis¬
low
and.
income.
have
municipal
maintain
i
Exchange
37 Wall Street
Brown-Marx Bldg.
New York 5, N. Y.
Birmingham 3, Ala.
securities,
branches
in
the installation of
Tvill
Beveidy
Announcing
the
July lj 1947
change in the firm
name
of
Hon, Rose & Troster
a
to
.
HorcRgSE 8 C0MPANT
Correspondent
550 South
120
Established 1914
Exchange
74
*
v
'
'
V
•
.
Howard s. Hoit
'
—
Eugene L. G. Grabenstattek
WE
AjItE PLEASED TO ANNOUNCE THE OPENING OF A
CLEVELAND OFFICE
Members New York Curb Exchange
AT
leading exchanges
CITY
BANK
BUILDING
Empire State Building
UNDER
New
THE
MANAGEMENT
OF
York, N. Y.
MR. JAMES
private wires to
our
Branch Offices
KASE
Formerly President of Johnson, Kase & Co.
Philadelphia, Pa.
Allentowri, Pa.
Lancaster, Pa.
East Orange, N. J.
Bridgeton, N. J.
Scranton, Pa.
Pott§ville, Pa.
York, Pa.
Morristown, N. J.
Syracuse, N. Y.
i
Trinity Place, New York 6, N. Y.
1033 NATIONAL
Direct
.
.
Spring Street
Reynolds & Co.
Broadway
*
Hills, Glendale, and Long Beac
Members San Francisco Stock
Exchange
.
Marx & Co.
Grannis,
Los Angeles
and other
'
Douglass, Jr., Pres¬
liam A. Lower and Paul
thou¬
N.Y.
Member New York Stock Exchange
.
&
of
5.
"
in
to
STREET
YORK
1,1947
Mr.
.
&.Co„1nq
WALL
4
the As¬
the change
Officers
ELECTED
PRESI DENTS
Blyth
of the great¬
one
BEEN
VICE
and twelve other California cities
■
the|
of
Exchange.
Thomas C. Brown
Members New York Stock
*■':
industrial, railroad, public-utility
San Francisco
;
Chronicle
CALIF.—Cal¬
■
standard for
announce
Montgomery Street
The
AND
WALSTON, HOFFMAN & G0ODWIN
Members New York Stock
Seventh
ANNOUNCE
alvin
tributors, dealers and brokers in
instances
Pacific Coast
to
ANGELES,
Los Angeles Stock
DIRECT PRIVATE WIRE
to
Special
LOS
Distributors.
Nelson Douglass, Jr.,
with the firm
local authorities set the lim¬
and
eastern!
em¬
circum¬
worse
no
in
vin J. Veith has become affili¬
ated with Fairman & Co., 210 Westl
ANGELES,, CALIF.—EdBourbeau & Cq„ 510 South
Spring Street,
established
against
bank
Joins Staff of Fairman Co,
Chronicle '
associated with
now
Vice-Presidents, -'y
a
the
Co., 634 South
Spring Street.
Mr. Harris was
previously with Investment Fund
ident; Edward J. Bourbeau, Wil¬
pleased to
are
Financial
look at FPHA's pay¬
would
have
represented
,
Bank
is
hurt the
tone of the project. AS it stands
thus far the occupants of the sub¬
housing
America, and a
advisory council.
under
the
John B. Dunbar &
\
We
The
gravy
ward J.
Some local authorities will not
take families of "too low" in¬
because
of
become
installation
:
LOS
policy." In¬
comes of tenants range as
high as
$6,000 a year. At one project in
Chicago, the investigators noted
high priced automobiles—Cadil¬
lacs, Packards, Chryslers.
a
to
Bourbeau & Douglass
Formed in Los Angeles
housing
effort is made to
increased rents, the officials
Special
trains that even the
New Deal produced.
The inves¬
tigators found, they are licking
their chops in anticipation of the
Taft-Ellender-Wagner bill.
aided homes cling or seek to cling
to them. Some 30% at present are
and
counsel
With John B. Dunbar Co.
The officials of this
in turn, serve (as
diem consultants to the FPHA
have landed
own.
remove
ancll
cfl
member of ital
Mr. Stewart hatil
Vice-President
slum clearance.
a
When you
housing
ineligible for the aided
general
beenl
Stewart, Jr., has
a
legal matters for the last 13 years.
roll, along with that of the State
and
municipal
authorities, you
wonder how there can possibly be
any real estate men left in pri¬
vate business.
They all seem to
acquire homes of
Some 80% of those
has
but
ees.
proponents
was
that
it
would
eliminate slums and under expert
guidance, the tenants would be¬
come
inspired to improve their
lot
operated
entitled to travel about
the country on government vouch¬
par¬
of
be
appointed
ployees
expert
contention
jln
clearances,
This
as
and thus
More important than this, how¬
is the lack of accomplish¬
program.
to
of Creston H. Funk.
ing Officials.
organization,
ever,
ment
30th
name
tional Association of Public Hous¬
Con¬
a
the
officials, local and
Federal, have banded together in
a
pressure organization, the Na¬
Girl
Recreation
June
The housing
attend
the
as
gress.
comes
socialist
of
of
convention
slum
sidized
crowd is
And
10
to
a
Scouts
office
central
of
at
title
perts,
claimed"
The officials and experts them¬
selves
are
a
traveling
bunch.
propag a n d a
re¬
are
comply with the law.
come naturally
of a community are
as
available.
job.
a
subterfuges
available
earlier
the
erature is passed out to
every ap¬
pressure
group
In
Samuel B.
White,
Frost National Bank Building, be¬
came
a
sole
proprietorship
on
instances, inside toilet fa¬
cilities have been placed in horiies
to
which sewage had not been
San Francisco office known Com¬
mies are on the payroll; CIO lit¬
tre-
afternoon.
The
—
many
In Atlanta the work¬
the
ANTONIO, TEX.
partnership of Funk &
; * LOS ANGELES, CALIF.—Rach-
wear
claimed
nothing of going to the
in
the
in
serv¬
breakfast.
Proprieforsip
SAN
got
the
Demolitions which
in
ers
movies
new
communities have
housing and kept
sorted to to
Through
workers
scientists,
have
becom^
think
the
Various'
the
Sole
Samuel Stewart, Jr. VI
Of Bank of America
slum area
slums, too.
the
on
They
come and go
pretty much as they
please, loose records are kept of
offi-
cials
taken
union.
enterprise
public
that
is
a
(7)
Gresfan Funk Now
does the elimination occur. Other¬
wise,
——1
inves¬
tigators
action
*
Wagner bill.
The
before
as
no
war,
By CARLISLE BARGERON
that
to
continue
to
today is
them
CHRONICLE
J. A.White & Company
Specialists in High Grade Ohio Municipal Bonds
UNION
CENTRAL BLDG.
*
CINCINNATI 2,
OHIO
'
■r~~
8
THE COMMERCIAL A FINANCIAL CHRONICLE
(8)
Thursday, July 3, 1947
No Immediate
Public
Utility Securities
"Dollar Crisis"
In
connection
with
dissolution
its
Engineers
program,
Public
Service expects to distribute its holdings of El Paso Electric to its
stockholders on the basis of one-fifth share for each share of
ports at high gear
Engineers
to
own
El
about July 21 to holders of record about July 10.
on or
Paso is
$16,000,000 company serving El Paso, Texas, and a
long strip of territory in the Rio Grande Valley in Texas and New
Mexico. This strip extends about &
a
200 miles along the Mexican bor-
der,
customers a 10% discount on December, 1946, bills. This involved
a refund of $39,000
(slightly less
with El Paso at about the
point. Electric energy is
middle
in
retailed
and
than
14-Texas communities
in
20
New
for
Mexico, together
with
It
adjacent rural areas.
The
population served is estimated at
100,000 (excluding 12,000 military
personnel at Fort
Bliss, Biggs
Field, etc.); of this total, 130,000
are
in the metropolitan area of
El Paso.
to
Power is also wholesaled
Mexican
a
1%
all
of the
in
approved
by
ternational toll
yof 1943,
bridges, at the end
so that all revenues are
electric.
now
net
on
in
residential
1946
were
rural,
and
mercial, 20%
wholesale
30%
34%
com¬
industrial and 16%
a
d
n
miscellaneous.
Principal activities in the area are
raising, cotton growing and
copper refining; El Paso is the
trading and railroad center for a
large area.
cattle
,
Rates
below
are
resi¬
KWH. in 1946
being 2.70, residential 2.80 and in¬
dustrial 1.00. Average residential
dential
average,
revenue per
1,557 KWH., substan¬
tially above the national average.
usage
original cost. Electric plant
plants about 80% of its power re¬
quirements.
Capacity of these
plants was increased 15,000 kw.
by
year
installing
boiler at the Rio
and
a
Grande
new
station,
20,000 kw. generator (esti¬
mated
cost $3,215,000)
has been
a
ordered for installation in
March,
1949.
Rate
regulation
in
Texas
is
principally by municipalities. In
Jan. 1, 1946, the
company reduced
residential rates $161,000 per an¬
and
trum
cial
in
rates
connection
30-year
of
September
cut
were *
with
commer¬
$140,000,
securing
franchise
from
in
a
new
the
City
El Paso.
Nov.
The City Council on
29 agreed to a valuation of
the
company's property for ratemaking purposes at about $17,000,000 for the year 1946. Since
a city ordinance
limits the rate of
return
in
to
6%
of
excess
dered
the
and
earnings
were
this, the Council
company
to
or¬
give
all
carried
was
estimated
an
$600,000
working capital,: making a
round-figure total of $12,000,000.
The city
valuation was nearly
return
larger, indicating that a
net
original cost of
on
about 8%
1946 net
about
allowed.
was
operating
9.8%
Actually,
revenues
were
of original
cost. The
commercial rate reduction was ef¬
fective for only about one-quarter
of the year, and adjusting for this
factor
the
to
drop
mated.
ing
Manufacturing Co.
Bausch & Lomb
be dras¬
curtailed because of an
impending "dollar crisis." Accord¬
tically
tjp the "Bank Letter":
ing
in
the exports,
clusion- that
dollar
credits
may
have
1946
been
program ef¬
should result
the
over
past
being
are
one-third
10
in
operating
revenues and
(2) to a sharp re¬
duction in fixed charges.
In the
calendar year 1946 share earnings
the
381,994 shares of common
stock (adjusted for the split-up of
Feb. 11, 1947) were $2.25. For the
12 months ended April 30, $2.36
that the loan program
kept going to keep our
exports booming and our manu¬
facturing capacity and labor force
fully employed.
ness
These
earned. Quarterly dividends
being paid at the rate of $1.60
annually. It appears likely that
New York 5, N. Y.
Also available is
dian
lightly be dismissed.
Europeans or Amer¬
ask for
foreign aid, with no visible end
in sight and no slackening in rate,
to
confessing
the
to
utility of the whole enterprise.
If Europe is not already develop¬
ing a basis of self-support, with
substantial aid, a dollar crisis
our
is
be
in
continued
the
hands
"prosperity," is to see only one
of the picture.
Money col¬
lected through taxes and used to
for
the
exports
could
have
in
the
case
of
other
disposing of his income.
Foreign Gold and Dollar
Resources
.
stocks of
So
far
as
money
become
and
"when
the
distributed"
price
stock
6.4%
yields
sells at about 10V2
cent
times
re¬
available
to tax
programs,
pacity
for
under
our
or will
existing
export
time
some
to
ca¬
come.
Gold
holdings outside the United
States
stock, vand
outside
the
Monetary Fund and the World
Bank, are estimated at $15 billion
earnings.
at the end of
May,
after the
even
^eavv transfers in February to get
th^ Fund eoing. > This compares
$10 billion in 1940.
Dollar
holdings of foreigners evidently
Liberty Aircraft Products
on
amounted to more than $5 billion
at the end of May.
The total of
gold and dollars is estimated at
$20 to $21-billion.
New gold pro¬
duction outside Rusv'a
may run
Request
to $700 million annually.
Paine, Webber, Jackson & Curtis
Established
While
of
1879
gold
held in
"last ditch" monetary
the
are
represent
reserves,
ings,
or
are
tied
in other ways,
up
private
or
duced
hold¬
and while their
the
by
prices,
rise
in
po¬
re¬
American
the
unprecedentedly high
they have been
running provides an answer to the
3.6s, 1953
levels
Portland Electric Power
at
extreme statements
more
about
a
world-wide "dollar crisis."
Additional Dollars Available
X
Aside from the gold and dollars
in
&
BROADWAY, NEW YORK 6, N. Y.
Direct
Wire
Earnings Comparison for second
quarter of 1947 of 19 New York
City Bank Stocks
Circular
—
to
Chicago
Co.
—
Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.
"Local
Notes"
Kentucky
Comment
issues—Also
brief data
■The
—
on
on
contains
36 diversified issues
Bankers
Bond
to
foreign hands that can be used
buy American products, dol¬
lars are
under
the
Home
constantly being
existing
programs.
biggest
(Continued
of
the
on page
Corp.—
convertible
1956—Seligman,
Lubetkin & Co., Inc., 41 Broad
Street, New York 4, N. Y.
Great Northern Railway—Anal¬
ysis—H. Hentz & Co., 60 Beaver
Street, New York 4, N. Y.
R. Hoe &
Co.—Analysis—Adams
Co., 231 South La Salle Street,
Chicago 4, 111.
V- •
&
Kern County Land
Co.—Special
— Walston,
Hoffman &
Goodwin, 265 Montgomery Street,
report
San Francisco 4, Calif.
Also available are reports
Inc.,
Building,
tional
Automotive
Fibres,
Inc.,
Pacific Portland Cement, Standard
Oil Co. of California, and Westinghouse Electric Corp.
Lanova
Corp.—Circular—Ward
&
Co., 120 Broadway, New York
5, n. y.
Peru's Debt Plan—Discussion of
recently proposed adjustment plan
-Bernard, Winkler & Co., 11 Wall
Street, New York 5, N. Y.
on
MacFadtden Publications, Inc., Na¬
Co.,
Life
Public
Also
available
memoranda
are
Taylor Wharton Iron & Steel;
Upson Corp.;
United Artists; Vacuum Concrete.
on
Purolator Products;
Utility
Bonds—Tabula¬
New England Public Service Co.
giving call at 30 days, first
price and yield—Vilas &
Hickey,
49
Wall
Street,
New
—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
tion
drop,
York 5, N. Y.
Also available
Railroad
is
leaflet
a
of
Developments
giving
current events during the week in
the industry.
-vX';: XXX XX
supplied
Two of
potential
47)
-
Oil Exploration Co.—Bulletin—
Comstock
Salle
& Co.,
231 South
Street, Chicago 4, 111.
Public
Railroad Equipment Certificates
—Valuation and appraisal—Stroud
&
Co., Inc.,
123
South
Street, Philadelphia 9, Pa.
Also available is
a
Broad
valuation and
appraisal of City of Philadelphia
National
Bank
&
La
Trust
Co.—Analysis—C. E. Unterberg &
Co., 61 Broadway, New York 6,
N. Y.
XXXXX'X/X X,': .'■J.1 X:
Also available are analyses on
Stern & Stern Textile, Inc., and
Cable
Rome
Corp.
Bonds.
Schenley
Two
Stocks
Portfolios
of
Low-Priced
Memorandum
—
—
A.
M.
Kidder &
■
Co., 1 Wall Street, New
5, N. Y. '
'
*
Cities
4*
*
Service
Co.
search
Detailed
study—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
Corp.—Re¬
Hayden,
Co., 25 Broad Street, New
York 4, N. Y.
—
Stone &
—Memorandum—Buckley Broth¬
ers, 1420 Walnut Street, Philadel¬
phia 2, Pa.
:
; ■
available
Also
Consolidated Electric & Gas Co.
—Detailed
Distillers
memorandum
Southwestern Public Service Co.
—
memorandum
—
Bear,
on
Warner
Watch
Gruen
are
memoranda
Company
and
The
Co.
Stearns & Co., 135 South La Salle
Street, Chicago 3, 111.
Standard Silica Corp.—Descrip¬
which
6s, 1950
Gilbert J. Postley
H. Walker & Co.,
Street, New York 5, N. Y.
Wall
committed
tential buying power has been
American Gas & Power
29
1
York
inconsiderable part
and dollar resources
not
a
4%
due
X-;-XX"'
is concerned,
already in the
present
U. S. Potash
3-5s &
executive—G.
When
is not covered by a tax it
involves that much pure inflation.
enough dollars are
hands of foreign nations,
25
In¬
Louisville 2, Ky.
choice
Engineers System (Gulf States
and Virginia
Electric).
At the
around
Oil
terest to the investor and business
the tax, had his
after
the
and
of
"Securities
Outlook,"
a
monthly discussion of topics of in¬
Kentucky
public, rather than being deferred
as
v
Store
as many jobs if the
taxpayer, instead of having to pay
free
debentures
Motors
on
dustries—Discussed in current is¬
supported just
own
Graham-Paige
Memorandum
sue
side
of the
Rockwell Manufacturing Co.
*Prospectus
Department
our
uay
11)
page
Government, provincial and
only postponed to a day when
in
is
list of Cana¬
municipal bonds.
the aid
will
a
continuous flow
a
with
Buckeye Steel Castings Co.
Street,
of
was
*CroweII-ColIier
Optical Co.
Canadian Bond Quotations—List
of quotations in U. S. funds—A. E.
Ames & Co., Inc., 2 Wall
viewpoints,
expressed
with
good
will
and
sincerity,
nevertheless
carry
implications
close
on
It is understood that the
firms mentioned will be pleased
to send interested
parties the following literature:
be
:omes
the
Recommendations and Literature
men,
must
of
Dealer-Broker Investment
feeling, shared by some busi¬
is a-
are
stock
issue
(Continued
On this side of the Atlantic there
of
this rate
Convention
our
used up
To look at the jobs "created" in
producing for export, and to con¬
sider
that? giving
away
vast
amounts: of goods is essential to
the
1946, and yet in spite of this, Hart Smith & Co.
City has again taken the largest space available in
"Commercial & Financial Chronicle,"
namely, the back cover. May I therefore,
representing Advertising
Committee, as well as our entire membership,
say "Thanks, Bill,
we
greatly appreciate your cooperation."
We also recognize and
extend our thanks to pur old
standby and associate, Lou Walker,
for his
half-page advertisement. Lou is an outstanding
personality
in our
industry and many of us have partaken of his
hospitality.
that a "dollar crisis"
lies in the offing unless our loan
program
is expanded promptly.
America wearies of the load.
on
York
New
rapidly
to
has increased from $339,000
in 1937 to $666,000 in 1945 and
$927,000 in 1946. The gain in net
was due in part to (1) an increase
over
of
have drawn the con¬
foreign dollars, and
years
:
during
magnitude of
unexpected
the
icas
savings of about $23,000.
income
of
cannot
refunding
late
exports will
S.
ex¬
our
on
decries the fear
and
trade,
U.
either
Trading: Markets in Common Stocks
Bates
port
that
that
return
Of course,
in annual
its effects
advertising Committee recognizes the fact that many of
have not enjoyed the
profitable business we expe¬
members
rienced
apparent
throughout the
shortage"
and
9.2%, it is esti¬
other account¬
about
bond
Net
"dollar
world
For
of
adjustments
fected
New York discusses the
would
rate
made in connection with the yearend rebates to customers.
A
Your
our
July
on
at only
$11,335,000 to which might
added
NSTA ADVERTISING
NOTES
"Monthly Bank Let¬
of the National City Bank of
ter"
so
(on this basis)
for
was
The company generates at steam
last
be
time
some
Observers abroad, from a study
at the end of 1946
one-third
Revenues
Public
The valuation fixed by the City
of El Paso is evidently not based
about
pany sold its important transpor¬
tation property, including the in¬
the
respect to business done
Juarez and other
com¬
system.
for
come.
The
state.
the books
The
revenues)
the
Service Commission of New Mex¬
ico with
in that
company serving a
population of 62,000 in the City of
areas.
year's
customers
was
NSTA Notes
Bank of N. Y. holds
gold and dollar balances abroad
are
sufficient to keep U. S. ex¬
National City
El Paso Electric
tive
Dan River Mills,
cal circular
on
Inc.—Analyti¬
common
stock—In¬
terstate Securities Corp., Commermercial National Bank Building,
Charlotte 2, N. C.
Fashion
Inc.—Analysis—
Seligman, Lubetkin & Co., Inc., 41
Broad Street, New York 4, N. Y.
Also
available
analyses of
Products,
Argo
Oil
Corp. and Consolidated Dearborn.
Tennessee
are
—
David
A.
Street, Chicago 4, 111.
Utica &
Inc.
Park,
memorandum
Noyes & Co., 208 South La Salle
—
Mohawk
Circular
—
Cotton Mills,
Mohawk Val¬
ley Investing Co., Inc., 238 Gen¬
esee Street, Utica 2, N. Y.
Western
alysis
and
Auto
Supply Co.—An¬
opinion—Ira Haupt &
Co., Ill Broadway, New York 6,
N..Y.
•
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4698
166
A New Cabinet
Dark Outlook for Office
Department
By JO BINGHAM
of Social Welfare."
ment
for
Points out
of
out
carry
new
pros
and asserts
concludes, if
new
responsibilities.
mary
last
bill
"cabinet department" of health,
In the
security is now of two years standing.
social
bodying
Since
has
submitted and
and
there
prove
now
hardly had
itself, there is
a
two
tice of
creating
solely
on
tional
some
cohesiveness.
such
S.
140
bills,
(Taft-
Fulbright)
and
in
the
before
S.
712
(Aiken).
The
former
that
approved
by the Senate
Committee
But,
purpose
Jo Bingham
011
reported to the Senate.
other
the
One
of
these, with or
these,
with
or
without
slight
modification, has received the ap¬
proval
and
of
support
various
professional organizations
Their
three
fields.
been
accorded
of
that
arm
aim
in
the
also
has
tion.
It is true that the heads of
the
10
and
have been
encloses
the
operating
various
offices
in
these
and
ever
chooses.
there
areas.
There
has
been
current
a
up¬
swing of interest and
support
concerning this recommendation.
Very recently an editorial in a
normally conservative newspaper
quoted... Senator Aiken's remark
that the Taft-Fulbright bill would
"raise
human
the
level
being
the
to
dignity already enjoyed
by the Holstein cow through the
Department of Agriculture," and
grimly proceeded with its own
of
conclusion that "the bill does this
without
extending
Government's
States
or
the
powers
over
the
Federal
the
over
individual."
Notwithstanding
this
rather
unique contribution of the bill to
the dignity of man, it is, neverthe¬
less, the
mundane aspects of
more
it which merit attention.
One
of
first
the
points
to
be
considered is the chief executive's
persistent request for the depart¬
ment.
It is well known thaf the
social
security proposals of his
legislative program, outlined
a
year or so ago
in the State of the
Union message, have not been im¬
plemented
would,
no
by the Congress.
It
doubt, facilitate a reali¬
zation
of
the
President's
recom¬
mendations in the general field of
social
security, education, public
etc.,
if
there
were
a
Federal department coordinating
these functions and headed by a
man whose interests and training
health,
such
as
an
to make him
as
administrator
effec¬
and
one
who, as a person, was loyal and
sympathetic
to
the President's
way of thinking, these two prime
qualifications making him "eli¬
gible" to be appointed to the cab¬
inet.
This particular aspect of
facilitating action on the chief
executive's ideas, is, perhaps, both
a "pro" and a "con," depending on
attitude
one
President's social
has
the
toward
legislation
are
cabinet members,
a
purely
there
administrative
would
seem
to
be
whomever
this
hardly be
because
it
ques¬
any
the
Congress create such a
partment in order that he
have
in
one
combination
and
the
man
of
may
traditiona
cabinet
a
de¬
advisor
staff administrator for
a
this
particular field of government ac¬
tivity.
V:V'-v
It is in regard to governmenta
activity and the essential
of
Federal
a
basic question arises.
be
pointed
purpose
department
by
up
It
that
a
besi;
can
explana¬
some
tion of the existing departments.
The three original departments
established in 1789
Treasury
and
the State
were
departments
War
Not quite 10 years later came the
Navy
department.
The
nucleus
of the Post Office department and
the Department of Justice (which
established
not
were
as
depart¬
later, in 1829
and 1870, respectively)
was
the
appointment in that first year of
until
ments
much
Federal
our
Government
postmaster general and
general.
ney
These
of
attor¬
an
six
major
functions, then, represented
areas
of activity and powers
specifically
granted to the National Govern¬
by the States,
ment
through the
They are basic
Constitution.
responsibilities inherent in the
istence
and
of
operation
Federal
Government.
department,
National
1849.
Interior
called
in
our
seventh
similarly. of
This
sometimes
the "department of things
general"
because
it
seems
to
haye picked up the loose ends of
activities
outside
the
Federal
functions for which provision had
already been made: these included
Indian
accomplished with the
194-3 Reorganization Plan,
under which the Federal Security
already
July,
Agency
was
given jurisdiction
over social welfare, education, vo¬
cational rehabilitation and health
terms
affairs,
public
lands,
na-<
Wild
a
are
three/ remaining departments.
These
and
are
labor.
agriculture,
The
first
originally created
were
three
with
commerce
was
estab¬
as
in
one
separated in 1913.
departments
what
do
not
be called
may
1903,
These
deal
fact
the
trinsic governmental function, but
as a liaison agency be-,
tween government and a
the
the
overall
country.
this
in
American
There¬
II.
Robt.
Armstrong
conditions
five
hence.
that
exist
decade
may
or
years
Once
a
do
that, we can
better fit the financial pattern of
the office building industry into
our general economic picture, and
then be prepared to forecast with
at
least
some
knowledge
and
we
hunches
upon
and guesses.
Now
that the
empirically,
—
for office
demand
space
is related to a number of economic
conditions and trends.
In fact, this
demand
upon
trends/
For
instance,
of
the
present
goods is
durable
Of
at this point I would like
course,
1939.
over
ing about price, but volume of
production indices. Prices indicate
some
things, but not all.
The best economic opinion fore¬
a
reduction in the produc¬
casts
tion
and
and
purchase
of soft goods,
already production is
ing consumption in
lines.
Mr. F.
President
is,dependent
these
So^jfor the moment, let
us
examine some of the basic founda¬
tions upon which occupancy rests.
surpass¬
many
of these
D.
Newbury, Vicethe
Westinghouse
of
Electric
Corporation, .writing in
the spring issue of the "Harvard
Business
Review,"
has
further
stated that "sometime during 1947
that
expect
we
production."
"this
that
for
orders
new
durable goods will
know
we
producing
to remind you that I am not talk¬
quantums—productive and con¬
sumptive quantities, so must we
be prepared to measure the prob¬
able, supply and demand for office
space under various kinds of eco¬
or
been
approximately 70%
of
nomic
I
only
double the 1939 rate, and the pro¬
duction of non-durable goods is at
think in terms
two
ment,
not
production
and consump¬
tion.
decline below
further
He
and
natural
states
to-be-ex¬
recession
in
>1948,
possibly extending ihto 1949." Mr.
Newbury also adds that business
men
look for
can
be
relative
stabil¬
1928.
from now until 1952 or
1953, although these years should
say,
less
stable
manufactured
building,
and
businesses
in
is
it
such
office
an
the service
lawyers, ac¬
as
countants, real estate firms, pub¬
lishers, etc., which occupy these
structures.
Of
there
are
concerns
that
course,
large manufacturing
maintain
their
service
such
sales
forces
as
divisions
office
in
buildings, but the large corpora¬
tions, all over America, by and
large, occupy but a comparatively
small percentage of the total of¬
fice space.
Of course, if this of¬
fice building industry is going to
be able to look to the future with
any
degree of assurance, At should
know
what is the percentage of
occupied by large and small
businesses, and I would recom¬
space
mend
in
that such
the
near
study be made
a
future
only through such
for
because
a
it
survey
is
that
real measurement of demand
new
construction
can
be made.
However, to
to
go on! With respect
industry and economic trends,
*An
by Mr. Armstrong
before the National Association of
Building
Owners
and
from
1922
to
Managers,
Boston, Mass., June 23, 1947.
There is go¬
change and our chief
a
worry at the moment consists
"when" and "how much."
Another index to watch In
connection
All
of
of
tens
new
"business
is
have
us
seen
thousands,
hundreds
of
yes,
in
this
failures."
thousands,
and even
starting
thousands
businesses since the
Un¬
war.
fortunately, the mortality rate for
new
business
has
always been
high, but in the interests of Amer¬
ican efficiency I suppose it must
remain high if we are to progress.
However,
business failures are
starting to increase and they are
going to increases more and more
and
more,' regardless as to what
general economy takes.
increase in business
course our
The expected
failures
vividly portrayed to
was
when I walked down the Main
me
Streets
just
several
little
few weeks ago of
villages in Eastern
Pennsylvania—the heart of the
Amish
a
Mennonite
and
Another
of
facet
the
general
economic background that must
be examined is the probable vol¬
ume
of retail trade and depart¬
ment
store sales
during the next
five-year period.
I know that I
don't have to tell you anything
sales during the last
about retail
few years.
But in 1929, all retail
sales, including those of durable
goods amounted to 48 billion dol¬
lars; in 1933 the sales fell to 24
billion; but by 1940 they picked
up to 46 billion.
Of bourse, with
the war boom this figure has risen
and in 1943 it was 64 billion, and
it has risen annually since, until
last
Lancaster
that had
a
country in
In
area.
one
population of
no
town
more
possibly 1,000 peo¬
surrounding territory
(and Only 14 miles from Reading,
a large city) there were four radio
and hardware stores,
several of
ple
in
the
which I presume had been opened
It isn't in the cards
by ex-GIs.
all
out
Retail Trade
these
of
the
after
stores
to
make
and
surrounding territory
bought the radios and the oil
lamps and electric fixtures they
have been waiting to buy for five
years.
And neither is it in the
townspeople
those in the
have
cards for all business and all those
occupying
heart of
during the
next five years.
We lose sight,
gentlemen, of many things living
in the center of a great metropo¬
cities
lis.
We can't
trees—or
in
space
our
to
see
the forest for the
should
for the forest.
the
survive
I
say
the
trees
The very numbers
of people
confuse our vision and
(Continued on page 28)
when it was 96 billion.
year
Just about double the 1940 level!
Just another indication of busi¬
ness;
1939
department store sales since
up about two and a half
are
times, and the national income is
up
from a prewar level of 70 bil¬
lion dollars to
a
rate of 175 billion
first six months
of this year.
So, gentlemen, there
of course has been business for
everybody, and the bottom of the
scraped
even
to
the
ployable
such
an
inefficient,
are
been
has
barrel
employment
address
than
dollars during the
Watch Production
ing to be
for
words, nothing much is produced
or
lieve you do either.
than 800—with
mild
some
the
other
ing to continue into the indeter¬
minable future?"
I for one surely
do not think so, and I don't be¬
for
great degree, what are known as
In
question,
is go¬
ask the
would
"Do you think this situation
the
ity,
industries.
this
Divorcing
pected development in the heavy
goods industries will set the stage
First of all, it must be realized
that office buildings house, to a
service
mo¬
undoubtedly know, factories
war.
dollars,
but
prod uction
any
job.
yourself
from
building picture for a
durable goods.
producing to catch up with a
backlog of demand created by the
of
the day is not
a
almost
office
and
goods for consumption at an un¬
precedented rate—they have been
All-
the
kind of
fill
to
men
extent
and
that
unem¬
being .grabbed
REAL ESTATE
SECURITIES
★
*
★
SHASKAN & CO.
Members New York Stock Exchange
Members New York Curb Exchange
AO EXCHANGE Pl.,N.Y.
Boll Tolotypo NY
Dlgby 4-4950
1-953
by
ACTIVE MARKETS
OFFERINGS WANTED
economic
They
(Continued
Beacon
Hotel 2-4s
W.S.
1958
life
32)
New
York Majestic 4s
Savoy Plaza 3s
1956 W.S
1956 W.S.
,
.
Broadway Trinity PI. 4l/zs 1963 W.S.
Savoy Plaza Class "A" Common
Greeley Sq. Bldg. Corp. Stock
Sherneth
A.
40
Wall St. 5s
60
East
M. Greenfield
&
Co.
5s
1954
Lombardy 3s 1961 W.S.
Manqueen Corp. 5s
New
York
Athletic
1952 W.S.
Club
4s
New York Athletic Club 2d 1
1955
\'zs 1955
Corp. 5%s
1956 W.S.
1950
Broadway Corp. V.T.C.
Corp. 5s 1948 W.S.
61
Realty
79
870
•
REAL ESTATE
1966 W. S.
65th St. 3s
7th Ave. 4»/2s
1957 W.
AMOTT; BAKTSR & C O.
segment
of
the
foster
on page
Allertcn, N. Y. 3-6s 1955 W.S.
S.t
STOCKS & BONDS
Bought-—Sold-—Quoted
in¬
an
rather act
of
interested
are
ALL
different nature
very
who
business
As
have
life, etc.
Of
us
time—the production of both
you
tional parks and monuments, pro-H
tection
of
migratory birds and
but
an
in
dollars, due
that
department,
operating in these various fields.
On the other hand, a great deal of
unification
and
coordination
is
to
talk
was cre¬
the
lished in 1889; the latter two were
logic
consumer
merely
we
was
effort to cen¬
tralize and integrate the agencies
some
this
if
any
born
responsibilities,
in
ated
A
ex¬
no different than
business is measured in
failure of
would
future will be
Truman's
Mr.
is
he
and
say that it is extremely
important cto watch production at
however,' vision, rather than
case,
request and recommendation that
the
angle,
departments
with
In
could
tion,
pro¬
gram.
From
Federal
alone; for the President is privi¬
leged to compose his cabinet how¬
bureaus
the
for wel¬
fare," indicate something of an
assumption if not a misconcep¬
but this is by custom, and custom
and
tive
ment" or "a cabinet post
favor
Security
now
were
pointing this out, it
worth
mentioning
that
the
phrases, "a department of cabinet
sature," and a "cabinet depart¬
success
However, I do not believe that those of
its
involving the nature and fore, just as
of a Federal department. business must
before
Agency,
of the government which
official
the
Federal
the
se¬
is
in the Executive Departments and
or
particularly
is
pants
However, probably the most
is
Expenditures
to what
as
it problem
is
rious question in the whole issue
been
order
Creating
brainchild
premature.
has
just
grounds
present
training
department
of func¬
a new
the
Both the
I
to
this
o r
old,
chance to
a year
building situation
modern first-class office building during next three years is going
Says market value of office buildings is only a fraction of repro¬
prospect of decline in taxes!and operating costs.
a
<$>-
of
q
f
no
can
reason
Congress
e
terms of finance.
industry
question both the need and jus¬
to
b
Govern¬
administrative
this
improvement is not yet
was
are
of the Federal
activities
ment.
the
proposal
that there is
have any idea
~~
em¬
*
nutshell, the problem of the future of office buildings is
a
that of all American business.
Congress
one
In
-
The President's request for a new
education and
who put§ up
one
and
duction cost
toward centralizing education
eral
"an^
be committing financial suicide."
to
cabinet post is created, it will tend further
and social security functions in Fed¬
Government and thus deprive states of their original and pri¬
and
*
Armstrong Associates
Prominent New York real estate broker and
appraiser reviews past and present office
"Cabinet Depart¬
and cons of proposal,
a
9
Building Financing
By ROBERT H. ARMSTRONG*
Writer calls attention to two bills introduced in Senate to
President Truman's recommendation
(9)
,
Incorporated
150 Broadway
Tel. BArclay 7-4880
New York 7. N. Y.
Teletype NY 1-588
SIEGEL & CO.
39 Broadway,
N. Y. 6
DIgby 4-2370-
FINANCIAL CHRONICLE
THE COMMERCIAL &
Thursday, July 3, 1947
CHART
The Price Level
Asst. Vice-President,
WHOLESALE
1939
REIERSON
By ROY L.
I
Economics Department
PRICES
100
s
290
29©
-
New York
Bankers Trust Company,
♦
^
270
disparities in present price structure. Sees
similarity in behavior of prices with period following World War I and concludes present price level w
peak, but does not anticipate imminent collapse in either agricultural or manufactured products
prices.
Sees better credit and inventory situation now than after previous war.
price changes and points out
Dr. Reierson traces postwar
rapid rise in commodity prices
A
J
25©
-
year,
war
pre¬
1939.
of
An
rise
this
shown on Chart I.
occurred after
While
1946,
representing
the most rapid
June,
dex
has
eled
off
still
lev¬
since
is
within
10%
or
the 1920 peak
fol¬
year
with
over
1926,
a
representa¬
in the prosperous '20s,
average of the five
the
World War II
the Bureau of Labor Statistics
almost 95/o over the average
^
-
in
prices have
Consequently,
the relationships between various
prices have been greatly altered
from prewar.
These shifts have
had serious repercussions through¬
increases
been very uneven.
comparable distortion oc¬
curred during World War I.
Al¬
though farm prices advanced
than
faster
other
the
two
cate¬
gories during most of the earlier
period, by 1920 the prices of
other
commodities
had
forged
ahead.
Even at the height of the
World War I speculative boom,
there were fewer war-generated
out the economy.
disparities in the price structure
Rapid Rise in Farm and Food than at the present time. The fol¬
Prices—One of the greatest mal¬ lowing summary shows percent¬
adjustments arises from the rapid age increases in the prices of the
increase in the prices of farm three groups of commodities from
products
and
foods,
compared their 1914 averages to their rewar
rrr
i
spective peaks in 1920, and from
their 1939 averages to their recent
highs (see Table I).
As
a
result, - although
.
-
110
other
stantially
only in
so
far
as
Table
gained by actual doing.
Because
our
of securities in
business is
just that—the daily trading
large and small quantities—we
stantly in touch with market prices
conditions which affect
These factors,
of service
we
as
well
as
are con¬
90
assure
World
II
War
the
is
Just wire, phone
or
prices of raw materials
prices of semi-manufac¬
tured and finished goods.
This is
i
PUBLIC
which
War
UTILITY,
INDUSTRIAL
BONDS
C:
:
19©
1
RAW
•
170
I.
developed
World
in
170
-jp
w
-
-
Then, the prices of fin¬
ished goods afflS*raw materials in¬
t
150
•
F NISHED
130
tion, relative to 1914 prices, while
the
big increase
occurred
prices
of
semi-manufactured
goods. The differences in the price
rapid
in
that
the
price
move
together,
ex¬
■
*
■
^
•
■
<
■
*
■'
■
»
'
1
■
M
1
1
1
1
1
1
9©
1
tion in
food,
there
are
tnan
discussion of the situa-
a
detail, but it appears that
prices in industries largely domi¬
nated by a
relatively few produc¬
(so
ers
called
-
"administered'*
prices) have, in general, increased:
"competitive"
The
price index for fuel and lighting,
which rose most in World War I,
rose
least this time.
Increases in
the
price
indexes
for
various
groups of commodities are shown
in Table IV.
,
.
less
since
Most
1939
large
have
than
producers
exercised
in
the two
Space does not
wars.
ally regarded
tive.. i;
•
somewhat
V;:;:..
~
prices
have
in->
Increase
the
economy,
have far-reaching
■/
in
•
Income of Farmers
increases
in
prices
<re-
farmers, coupled with
a
slower growth in prices paid, have
_____
146
in
implications.
ceived by
62
prices
stresses
—Rapid
138
\
_____
—
various'
of which
180
130
162
which
creased since prewar have created
1939 to current peak
139
,
Effects of Price Increases
The differences in the rates at
great
1914 to 1920 peak
more
highly competi¬
as
some
I
prices..
apparently
restraint in advancing prices than
has been evident in fields
gener¬
.
foregoing group data ob¬
scure divergent movements in the
prices of individual commodities
so-called
"free"
or
The
:
products
:y'.
iaim
similarities
Per cent increase in wholesale
Total
1J
largest percentage increases.
pe¬
Uneven Increases Among Com-
V
1
*
riods, prices of textiles and build¬
ing materials showed' about the
combination of
•V '•
«
differences in price behavior
in the two wars. In both war pe¬
the two.
Farm
■
and
Hijfcke Prices of fin¬
a
1
permit
otner
commodities
and
finished
falling
lower in periods of depression.
The present disparity is abnor¬
mally large, however, and some
correction is-indicated, either by a
decline in raw material prices, or
goods, of
I I©
oi
indexes
and
volatile, rising higher in
increase
fULL
J1'
'
'
modity Groups—Within the group
riods of, active business and
an
i
the
prices of raw materials reflects,
part, the sharp increase in
prices of farm products.
Survey
of the data over a period of years
materials
13©
MANUr AC 1 URtD
in
raw
IQDUCTS
-
I 10
90
rise
r
SEMI-
periods
indicated'in Table III.
recent
PC
r
L
the
in
15©
r
-
creased in about the same propor¬
broifght unprecedented prosperity
agricultural regions. Prices
94
to our
TABLE
received
II
prices
,
(1926 = 100)
Current peak
170 (May)
183 (Mar.)
products
Current peak
as per
cent of
1920 peak
149
(June)
168 (Mar.)
108
113
174
(Aug.)
132 (May)
76
167
(May)
150 (Mar.)
90
TABLE
»
_
Raw materials
Semi-manufactured
Finished
j
average,
while prices
have risen only about 80%.
any
previous levels. The
agricultural propri¬
etors
is
estimated
at almost $15
compared with a
billion for 1946,
146
133
90
prewar
average
Agricultural
comprised
national
years,
79
133
the
146
about 7%
income
total
in
1946
Per cent increase in wholesale prices
1939 to current peak
219
98
83
Building materials
Hides and leather—.,
Chemicals
Yl-L
Group average
Metals
Housefurnishings
FueLand,lighting
1
rv
in
had
9%
the
of
last
reached*
rate of more than 10%. It seems
fair to state that, as a
group, the
farmers are among the
largest
beneficiaries of
our
current pros¬
.
,
<
Effects on Consumers
While
the high prices for farm and food
products have brought
62
to the
50
,
96
—,164
about
and
year
total;
prewar
75
113
162
_-_r_
the
the
perity.
100
187
jJ.11
of
in
a
IV
1914 to 1920 peak
256
Textiles
$4.5 billion.
income, which*
constituted
quarter of the
94
|
of
net
'
TABLE
paid
This
favorable price situation, together
with good crops, has raised the
income of farmers to heights sur¬
net income of
III
261
goods
by
farmers
have
in¬
creased about 160% over the
pre¬
war
passing
Per cent increase in wholesale prices
1939 to current peak
products-..
Exchange
AND INVESTMENT STOCKS
210
m
190
Total
MUNICIPAL, RAILROAD,
90
1.*^
•
1914 to 1920 peak
GOVERNMENT,
1
PRICES
210
This situation also differs from
that
Pressprich & Co.
Members New York Stock
1 1
1
MAT ERI>
Total
10
M
230
Food
Street, BOSTON
t,l
t/"
Other commodities
201 Devonshire
I I ©
i
n
■
1939.
Farm
2-1700
i
i
25©
Index of wholesale
Teletype NY 1-993
J
J
-
Chart II which shows
in prices over the
averages for 1939. A similar pat¬
tern emerges when the increases
in prices are compared with the
averages for 1926, or for
1935-
be located. -
Telephone HAnover
uj ij
increases
write.
NEW -YORK 5
11
j
230
indicated by
put this offer of intelligent coopera¬
68 William Street
i
250
in
1920 peak
R. W.
THAN
I939c|00
Other commodities
tion to the test, no matter where
you may
.1 L 1
WHOLESALE
in
the
i
rapid
more
Food
invite you to
ii
price movements 'during and after
TABLE
markets.
JU-X.
of the
dealers of the type
especially needed in these days of unsettled
1,
,,,
Material
Raw
feature
security values.
believe,
*
CHART
Rise in
second
Prices—A
ished
subsidiary
• ..."
||W |
OTHER
II).
Rapid
goods tend to
it is predicated on experience
13©
H |
*****
m ■
in
shown
(as
lower
for
be valuable
action can
/'
A,-
FARM & FOOD
prices have been some¬
higher, while the index of
commodities has been sub¬
what
more
that
y
food
and
17©
15©
the
cept that raw material prices are
aware
19©
-
OODJ
*
130
indicates
OF ACTION
f
r
—
index in the ag¬
The
THE + VALUE
'
i
-
gregate has not so far reached the
record high of May, 1920, farm
are
TV7E ARE well
1
"J
150
wholesale price
movements in the t;wo war
i
21©
A
■'
170
than
No
Disparities in the Price Structure
f
190
rise
1935-1939.
prewar years,
Roy L. Reierson
W orld
War I.
The
made with
tive
of
which
lowed
products
180%
Consequently,
farm
and
food
prices are out of line compared
with prices of other commodities.
This is also true if the comparison
in¬
March, but is
about
about
1939, and food prices about 140%,
the prices of other commodities
have increased only about 60%.
price increase
our history.
price
prices of farm
increased
have
in
The
rise
prices of other commodities.
indication of this disparity is
in the
A
a
23©
>
with the much more moderate
Over one-half
ARM/
-
<$>-
the
for
F
2 30
210
is typical of war and postwar years.
exception.
At its recent peak in March of this year,
index of wholesale commodity prices showed an increase of
2 7©
-
<
-
250
near
was no
I
consumers has
50
—
..
.
s
"27""TTT
verse.
prosperity
farmers, the effect on other
been quite the re¬
Over 60%
of the increase
'(Continued on'
page
26) 0 ''
Volume
166
Number 4603
THE COMMERCIAL & FINANCIAL
CHRONICLE
(11)
Pennsylvania Brevities
NSTA Notes
Southwestern. Public Service Co.
*
(Continued from
Philadelphia Plans for Natural Gas
Philadelphia Gas Works Co., operators of the city-owned-gas
plant, last week asked City Council for authority to purchase natural
to be mixed with manufactured gas in order to meet increased
demand and offset soaring costs of 'the manufactured
product.
1
.7;': ;
7 V
In a letter to
Council, Hudson W. Reed, President of the com¬
pany stated that negotiations had-e*
:
—
gas
Many have responded to
been completed with Texas EastTransmission Corp., present
.
receivers
and :.■« 38
radio and phonograph models,
my
of the Big and Little
pipe lines, to supply Phila¬
delphia with 50 million cubic feet
the
past several years of experience in this
work repre¬
your Chairman is confident
that-our membership
this Committee when it realizes how
will
support
achievements
to
are
I believe it
important
national organization,
our
of
natural
daily,
gas
starting
Bringing
in
box
the Fall of 1948.
10
Although
Gas
the
Philadelphia
Commission
approved
1,C00
accept¬
works.
the
Federal
Power
Commission
and
City
is
required.
The
proposal
be
referred
ing
to
on
Adver¬
1
pointed
was
substitution
•
heavy
7
ing
oil
of
that
out
natural
in
used
the
U.
ca-
pacity of the
!
million
€0
-
cubic
thus avoiding
•
feet
for
necessary
stock
date
first
hall;
share,'
common :
73
cents
a
com¬
year
ago.
reflects
divi¬
of arrears
in
which
U.
G.
I.
has
I.
for
1947
Walter
E.
Long,
has: indicated
Exchange Commission
CONVENTION REGISTRATIONS
that
,The
esting
Boston
long
as
as
July 1, 1947
Private
in
northwestern
icy.
Pennsylvania...7
■
The
company
asked
SEC
for
authority to borrow $6,500,000
from Chase National Bank of
'
which
$5,000,000
loaned to
v
Natural
would
Committee
has
planned
Co.
Oil
of
Pa. Of this amount,
75% would
be used to build 75 miles of 20inch
paid
pipe
line
the
and
balance
to improve the company's net of
A complete
early registrations will be
planning for the comfort of
attend the
four-day meeting but
Convention.
"
.
The Convention Special will
leave
7
mem¬
can
77'V-
Chicago
compressor stations.
down
the
Baltimore
York
*
Chesapeake
Bay
visiting^the
returning to Baltimore in the
the Special Train for
Naval
Academy
late~aft5Tnodil
Philadelphia.
•
J
where
on
at
York Industries, Inc., successor
to
internationally-known
Yprk
& Lock Co. of York, Pa.,
closed down its plant last Friday
and has gone out of business. The
predecessor company
had been
operated by the late
S. Forry
Safe
on
the
-Plant, equipment, machinery,
other assets,
materials and
raw
valued
the
by
at $7,-
company
€00,000 will be placed
on
■■.V
•'!
*
:
.'J
dividend
*
The Special will be
J
operated
"
-
approximately $175 each, for two
the
make
to its
SEC
for
authority
contribution
a
Co
to
of
$600,000
subsidiary, AIlentown-Beth¬
lehem
Co.
Gas
The
latter
pro¬
the
off bank loans
pay
balance for
capital addi¬
would create
The
step
surplus
capital
in
sufficient
amount to write off the balance of
plant adjustments resulting
determination
of
the
from
*
*
-
President
Co.
President
to
of
has
Philadelphia
been
succeed
who
the
on
elected
Horace
becomes
P
Chair¬
Pittsburgh Rys. Co.
Nazareth
"Warner
H. M.
at
a
Special
can
now
Stock Exchange Bldg. Phila. 2
Telephone
Teletype
RIttenhouse 6-3717
comparative
made
make
hotel
reservations
Ben Franklin Hotel Com.
Hotel
Phila. Warwick Com.
.
at
once
on
through
Phila.
the
of New York is
now
distribut¬
■;
.
*
.'
■;
:
an
article
East Penna. RR.
Samuel K. Phillips & Co.
Members
Philadelphia
news
Packard
;;
Contained in the current issue is an article on the
Qyer-theCounter Market, by Carl
Stolie, President of G. A. Saxton & Co., Inc.,
and
Transportation Issues
Catawissa RR. Pfd.
Anton
SECURITY TRADERS ASSOCIATION OF NEW
YORK
Security Traders Association
Keystone Com.
through Edward H.
Homsey, Chairman of the Hotel Committee, c/o duPont,
Homsey Co.,
31 Milk Street, Boston
9, Mass.
The
with
a
net
PH
half
first
of
Net
black.
months
1947
will
be
for the
loss
in
the
first five
reported as $44,870,
accounted for entirely by a $77,523 deficit incurred in May; Mr.
was
results in May re¬
flected heavy car repair program.
Major
said
the
Tor-
first
five
months
on
Who"—pic¬
Pennsylvania
tures of Wall Streeters taken in their
pre-salad days.
and New
*
*
15 by 20 inches and claimed
far brighter than others
mow in use.
Price of the model
be
installation and
charge of $85.
De¬
is $795, plus an
liveries
two
are
has
Available Publications
Bartley,
Jr.,
Sherry
branch
of
formerly
-
located
Netherland
Reynolds
&
II
Co.,
o
Dolphin & Co.
at
t e
have
Fidelity
Philadelphia Trust Building
PHILADELPHIA 9
Valuation and Appraisal
RAILROAD EQUIPMENT CERTIFICATES
been transferred to the firm's main
immediate.
also
The
announced
Telephones:
Philadelphia—PEnnypacker
New
Bell
office at 120 Broadway.
CITY
Trading Department Active
QF PHILADELPHIA BONDS
direct-view
table
model
System
Teletype—PH
299
Phila. Elec. Co. Common
in
*Nor. Ind» Pub. Serv. Com.
Copies
on
*
Roberts & Mander Common)
«
Atlantic City Elec. Co. Com.:
Direct Wire to New York
City
*
CHAPLIN
and
COMPANY
Members
N. Y. Stock Exch.
Pitts. Stock
Peoples Bk. Bldg.
PITTSBURGH 22, PA.
Grant 3900
Bell
Offered
only by prospectus
Bought—Sold—Quoted
Incorporated
61 Broadway
-
STROUD & COMPANY
Exch.
New York Curb Exch. (Assoc.)
10th Floor,
»
Harshaw Chem. Co. Common)
Request
NEW YORK, N.T
Bowling Green 9
System. Teletype—PG 473
123 SO. BROAD
STREET
120 BROADWAY
PHILADELPHIA 9, PA.
PEnnypacker 5-7330
REctor 2-6528-29
E. H. Rollins & Sons
Incorporated
NEW YORK 5, N. Y.
Allentown
.
.
Pittsburgh
Lancaster
Scranton
PEnnypacker 5-0100
1528 Walnut St.,
New
.
;
5-4646
York—HAnover 2-9369
-Valuation and Appraisal
new
age
company
Curran,
the
Issues
principles of
.projection, Philco Corp. has inItroduced its new television re¬
ceiver providing a picture im¬
.warranty
A.
B
Georges A. Droulia and James W
Television
Philco's
Employing
John
Jersey
Municipal Bonds
Robert
Western Pennsylvania
'
;
Rothfeld,
Steckler,
ex¬
penditures
for
maintenance
of
equipment were $1,500,000 greater
than for the same 1946 period.
*
H.
Exchange
N. Y. Phone
COrtlandt 7-6814
375
opened investment companies by Harry I. Prankard
2nd, President of the Lord-Abbett Group of Investment
Companies.
An amusing feature is a
two-page spread of "Guess
of the Board.
Philip
Stock
Bldg., Philadelphia 2
Teletype
Reynolds Transfers
loss of
PH 73
rate.
included in the cost, those
be
Byllesby & Company
PHILADELPHIA OFFICE
in
cost
a-
Cement
Company
compartment from
going directly to Boston, who do not plan to travel
should
and humor.
*
Bryans, former Executive
Electric
arrive
ing the ninth issue of "STANY," the Association's
magazine of
Bryans Heads P. E.
Vice
Those
Special,
origina
its utility plant.
cost of
be
Botany Mills
Sterling Motor Truck
Welch, 231 South La Salle Street, Chicago.
$325,000 of the funds
use
are
.
Empire Southern Gas
Special will not have to make individual hotel reservations.
Reservations
-
to
received to
at the Hotel Statler Boston
a
HAnover 2-2280
WHitehall 4-2400
Empire Steel Co.
-
persons in
the
asked
Improvement
;
cruise
a
all-expense basis at
an
New York Phones
u
American Box Board
7"
'
on
Street, Philadelphia t
Teletype PH 257
Annapolis
Sunday, the Special will
Boston early Sunday
evening.
of
*
noon
on
has
man
$1,837,899 for the first six months
of 1946| C. A. Major, President,
predicts that operations for the
to
was
Chestnut
Phila. Phone
Locust 7-1477
Lehigh Valley Railroad
-
7" Comparing
,
Next
.
Gas
Liversidge
*
*
28.
sale at
auction July 22 to 25.
1421
"
sightseeing Sunday morning. The Special will be parked in
station Philadelphia for occupancy
Saturday night.
Leaving Philadelphia at
2039, Pfd. & Common
H.N.NASH&CO.
be
Philadelphia will be hosts
Special at cocktails and dinner Saturday
night, and
rooms
H. B.
jLaucks for 55 years.
3-6s
they will board
-
Chicago., The cost from other cities will
tions.
Quits
Philadelphia Transportation Co.
The Investment Traders Association
of
to those
As
and
Industries
Stocks
-
Traders Association
Security
United
sq
*
Bank & Insurance
Friday afternoon
on
be
guests: of
AIlentown-Bethlehem Gas Co.
poses
•
*
June
* ■
be
City,
Philadelphia
inter¬
most
a
Only those members of the NSTA on or before
eligible to register at: the members rate
for either
two days or the full
action will be taken in October.
its subsidiary, United
Gas
A dividend of 65 cent$
Angeles
Wire System between
New York and Los Angelet,
Philadelphia,
BroadiiStreet
t
-
be unable to
are
also for
areas
Los
Hagerstown, Md.
Telephone—WHitehall 3-725A 1
N. Y.
for relaxation and
entertainment.
announced shortly and
as
there for two days.
factory and its surplus large, it
sumer
•
well
special registration fee has been established for
NSTA
will be
management's policy to
continue a liberal dividend pol¬
Exchange
N
.7,7:77/:v7'1
A
bers who will
New York, contemplates link¬
ing the Big Inch pipe line to con¬
.
Convention
program will be
of great assistance to the Committee
in
those attending.
U.
of
York Curb
Walnut Street, Philadelphia 2
allowing ample time for the business
meetings of the
program
Convention
President,
as
and
of
Pittsburgh, Pa.
Registration blanks for the National
Security Traders Associa¬
tion Convention in Boston
Aug. 11 to 14 have now been mailed to
all members.
All planning to attend
thej,Convention) are urged to
return the registration form with
check as soon as
possible, with
an indication of choice of
program for
Tuesday, Aug, 12.
last week by Natural Fuel Gas Co.
G. L's cash position is satis¬
Philadelphia
Exchanges
Member
Street
a
is
York,
New York 5, New York
NSTA
paid
interest, continue to liqui¬
dividend arrears, income for
G.
Application filed with the Se¬
&
7''"- ;*' !
■■
expected to
substantially exceed that of 1946.
Natural Gas for N. W. Pa.
curities
that
are
account
on
panies,
U.
-
*
:
1420
by Commonwealth & Southern Aug. 8 and special cars leaving
Cincinnati, Cleveland, and Detroit
Corp. and Niagara Hudson Power; will join the
special en route to Baltimore.
Arriving in Baltimore
Corp. Providing these two com¬
Saturday morning Aug. 9 those on the Special Train will
ex-
growth of the company.
-
*
.
Half Year
improvement
dends
future
the
with
The
!
penditure that would otherwise
be
per
pared
day,
per
large capital
a
G. L
cents
plant at least 1
gas
standard,
earnings for United Gas Irnprove4
ment Co. may approximate
$l,-t
400,009, .; equivalent : to :about 87,
manufactur-
should increase the
gas
*
Indications
for
gas
than
be
those on order,
box
coming off the Altoona
*
•
-1
Of
are
company
of natural gas.
It
:
longer
Pa.,
will
cars
/
has also asked
for an advance of $7,500,000 from
the city to make capital improve^
ments and changes in equipment
which will be necessary with the
use
Altoona,
new
assembly line at the rate of ap¬
proximately 250 a month.
July 15.
30 Pine
Rail¬
interior length of 50 ^
aj*
cars
;
New
New York
Harold B. Smith, Chairman
J.NSTA. Advertising Committee
Collin, Norton & Co.
,
,
additional
an
its
The
feet
feet.
Light¬
Pennsylvania
ordered
from
with
will
meeting I
its
at
10
Council
Council's
Committee
The
has
project,
the*
by
ance
months,
road
already
j
,
Cars'-7
total of 2,100
up to a
Company
Request
Los Angeles Stock
New
Confucius who said: "One does
better
was
ordered during the last
cars
has
Orders
on
BUCKLEY BROTHERS
Members
its
Also
tising Committee-than Nominating Committee."
...
Pennsy
Memos
„
With
operators
Inch
Company
The Gruen Watch:
-
senting the NSTA,
television
ern '
Warner
8)'
letter to the membership
regarding
our
annual issue of the
'"Chronicle," but as this article is
being
written, there are many to be heard from.
consumer
.
page
11
„
York
*
_
Philadelphia ?
Boston
San
P'ranciseo
Chicago
-
_
„
^
„
-
It
12
THE COMMERCIAL & FINANCIAL CHRONICLE f
(12)
—:
The average
yield is 4.0%.
But
the lowest
yield and the highest is very wide,
being approximately 118%.
Fire
Association and Security offer the
highest yields, with 5%; Hartford
offers the lowest, with 2.3%.
^
the
Bank and Insurance Stocks
By E. A. VAN DEUSEN
This Week
'
Insurance Stocks
—
stocks is offered in
Standard & Poor's June 27 "Industry Surveys," which covers the
insurance industry.
We quote as follows:
"Net investment income
of the average fire insurance company in 1946 was the highest in
many years, and results for the current year will be even better.
Since this is the principal source of dividends, current rates are
secure.
This is the main factor of stability in the fire insurance stock
A
comment
pertinent
outlook."
insurance
fire
on
'
•
•
.
A
selection of 21 "old line" fire insurance .stocks is listed
1
consideration
the
for
TABLE
Hartford
America
1
Asked
Rate
&
dividend
"secure."
In
ment it may
rates
view
being
as
this
of
Boston
2.00
Average" is 1941 to 1946.
will
be
investment
observed
that
...
i
2.20
r
Association
Franklin Fire
1946
It
Great American
Hanover Fire
■••>
-
and
Hartford Fire
Home
4.5%
4.1%
">
4.6%
1.20
It will be observed that 12
2.3%
108%
•:
.
;
^
'26
2.50
_____
Insurance
4.0%-
2.00
4.5%
River
4.4%
2.00
___.
poor
Phoenix Insurance
Prov.
attack
Wallace
81
•
3.7%
past two to three years.
3.8%
of
68
1.40
2.9%
St. Paul F. & M._____
2.00
Security Insurance
Springfield F. & M
1.40
I
1121/2
U. S. Fire__
iV
Average
2.00
attack
50
4.0%
Total Net
Current
Annual
6-Yr. Av.
1946
Div. Rate
$3.47
$3.78
$1.80
Agricultural Ips.
4.82
5.02
4.55
3.33
3.29
3.42
Continental
Insurance
p
Franklin Fire
Great American
p
2.71
,
3.09
_____
Fire Association
3.07
4.05
3.59
.
3.54
Co. of
4.22
.
2.50
2.75
1.49
1.03
0.42
1.96
2.14
1.88
4.18
_______
1.04
"More
New
p
Amer.
4.44
1.87
1.69
4.72
Hampshire
North River
1.71
1.68
1.25
1.23
\
2.00
1.79
,
3.00
1.40
3.70
5.24
5.69
2.23
1.68
—2.05
1.40
6.30
6.81
7.20
10.88
4.75
2.85
3.25
4.75
2.00
2.65
income
profits
is
include
after Federal income taxes,
except those marked
9
p
2.74
before
Federal
underwriting
All earnings
are
income
results
taxes.
and
are
consolidated basis
on
On
June 26,
;
NATIONAL BANK
to Congress without his
signature the so-called "Wool Act
of
1947."
stated
of INDIA. LIMITED
Bankers
on
the
to
Government
Office:
26,
London,
Branches
Request
in;
Kenya Colony and Uganda
Head
BANK STOCKS V
Circular
measure
tended
in
India,
Colony
Laird, Bissell & Meeds
Mrmhfr.
j
Y
New
York
Stock
Exchange
i
;
it.
5,
Bell
A.
Teletvve—NY
Gibbs,
and
E.
increase
Paid-Up
Reserve
The
Dept.)
to
the
provision
in¬
the
tariff
on
to
this
Burma,
Aden
Kenya
Zanzibar
Capital
Bank
Fund
conducts
banking
and
£4,000,000
£2,000,000
£2,300,000
description
every
exchange
business
Trusteeships and Executorships
also
undertaken
the
on
be
blow to
a
lead¬
our
ership in world affairs.. It would
be interpreted around the
world
first
a
step
traveled
after
with
other
the
such
road
same
isolationism
and
we
that
on
economic
which
Ceylon,
and
provision
ground that it conflicted with the
to
C.
Subscribed Capital
1-1248-49
Manager Trading
to
he
message
objection
the
was
policy of reducing trade barriers.
as
Bishopsgate,
N Y.
Telephone: BArclay 7-8500
brief
only
wool
War
\p BROADWAY, NEW YORK
In
his
"It would
19 NEW YORK CITY
President Truman
returned
tion
2nd Quarter 1947
in this
through the imposition of
import fees. He based his objec¬
p.
EARNINGS COMPARISON
be mis¬
down
countries
First
disastrous
World
conse¬
quences," the President stated.
No action
was
*
the President's
of
ate
That
almost
immediately
passed
a
"import
given
the
the
foreign political and
policy of the United
today is imperialistic.
back
is
the
That the United States is head¬
ing into
The
V'>
✓
BANK
STOCKS
INSURANCE STOCKS
AA
B UIL £R-H Uf ft & CO.
t
I.
,r
OF
CAUFORNUSf
210; WEST SEl£IITi»
10S ABGELES
Primary Trading
bales bervice
NEW YORK
•
CHICACO
DALLAS
»* San
PHILADELPHIA
•
*
iT. LOUIE
for
on
York Coffee and Sugar
on
look
powerful;
misery it
futures
the New
Exchange
years.
a
-
The opening
was
short address made
We
We
States
taxing
create.
We
and
ourselves
are
aid
to
wholly altruistic
know there
be
can
no
prosperity for the United
unless
there
prosperous
Soviet
is
peaceful
a
world.
Expansionist Policy
Today,
our
at
an
imperialistic nation al¬
conscription laws
to
lapse?
We
did.
Does
an
im¬
pel'ialistic nation voluntarily
grant independence to one of its
possessions?
We did.
We have
just saluted the flag of the
Philippine Republic.
I
heard
never
of
new
Now let's look at
Number
States
Mr.
The
been
to
distressed
peo¬
the world.
sublime
of
re¬
would
have
you
believe that the United States to¬
the
hard, ruthless
a
enemy of
man's welfare every¬
common
where.
cutting down its armaments. I
heard of an imperialistic
nation being so magnanimous as
over
United
.
imperial¬
an
never
have
the
center
,
Wallace
day is
Our
or
ple all
world
action.
istic nation giving away territory
we
Misconception
Two—that
is the
absurdity
Capitalism Is Flexible
How
can you call
reactionary a
which, in a single genera¬
has fought
two
wars
it
nation
tion,
neither
sought
the right of
of
the
in
a
inspired
nor
to live
man
free society?
charge of imperialism lies in the
fact that we are simultaneously
accused of isolationism and indif¬
and
such
a
How
for
free life
can
you
where
ference
a
call
to
the fate
of the
rest of
reactionary a nation in which
ownership is so widely diversified
system
Sinister
it
Mondays,
on
all
the people have
big stake and status in the
Foreign Policy
seems
to
us
Wednesdays
under
which
they live?
document that for you.;
me
Thirty
million
that
United
and
American
States
people
the
are
industry.
in
the
owners
of
They.'own
Fridays, the United States is ac¬ the stocks and bonds of American
cused
of
being
an
aggressive, 'industrial and business concerns.
swaggering, blustering, imperial¬
istic
nation, busily grinding its
swords to hack the world in half,
Fifty million Americans are put¬
ting capital to work. They have
savings accounts in our banks. One
and that
on Tuesdays,
Thursdays
Saturdays we are charged
hundred
and
ance
fifty
policies
with isolation and indifference to
in
force
insur¬
in
my
ing
of
million life
are
country.
C.
Gardner,
that
"all
DETROIT
*>>
in
whatever
on
or
taking nothing.
we
peace or
John
-
feeds
find
It is not
what
stated
TRANCiSCU -. + JtAniE *"'"
it
can
are
are
by the President of the Exchange,
•
billions
out
putting in instead of taking out.
■'
./■■/
low its wartime
Sometimes
July 1; after having been closed
preceded by
CmnlcltHf V Uittt If
•
Ring
reopened
STREET
14, CALIFORNIA
TELEWE: LA J7t. U JIO
I0ST0N
was
for five
Telephone trinity 7i7i
Markets —
Analytical andyyyy
Sugar
trading
nilTI
poured
it.
Does
4,
No
Exchange
precedent in all
policy of self-help
happens to collide with what we
Misconception feel
is the expansionist
policy of
Number
One—this
charge that Soviet
Russia. Russia to us in the
the United States
is embarking
United States looks like a
huge
on
a
program
of
imperialism.
glacier, moving steadily from east
That's a phony.
The spirit of to
west, smothering and pulver¬
imperialism simply does not ex¬
izing whatever may lie in its path.
ist in
my
country.
There are We in
the United States ask this
strong reasons — good, practical
question:;'"Is this another ice age
reasons—why it doesn't exist. We on the
way,' and this time made
covet
nothing.
We don't want
by man instead of by nature?" If
anybody's territory. If we're im¬
Mr. Wallace had looked east in¬
perialistic, we're going about it stead of
west
when he
was
in
in a most peculiar way.
Does an
Europe, he might have found some
imperialistic nation cut appropri¬
cause to worry about
imperialism
ations for its armed forces?
We
in the world today.
did
lapse.
Sugar Trading Resumed
Comprehensive Dealer Service
no
its feet.
on
Let
On N. Y. Coffee
stability in their af¬
it drains the substance of the less
economic chaos and financial col¬
the world.
We offer
remain
economies
policy is the exact contra¬
diction of policies pursued down
the ages by imperialistic nations.
Imperialism
taxes,
enslaves,
plunders and exploits.
It takes;
cataclysmic depression,
a
their
Our
States
That the United States today
world center of reaction.
people to
food, dollars and materials to help
stricken and prostrate world
get
because
taken to override
new measure, without the
fee" provision.
has
have
others.
<
veto, but the Sen¬
today.
Wallace
free
rebuild
There is
economic
attitude
concur
other provisions of measure for
aid of wool growers.
\ 2.00
2.29
investment
operating
2.13
*
We
tariff clause, but
ex¬
willingness to approve
pressed
1.00
3.50
3.07
4.36
creased
•
2.00
'
4.28
to
were
three great misconceptions
about the United States:
.
President Truman objects to in¬
3.00
,
3.14
___
Net
.
V
•
1.97
___
St; Paul F. & M.__
net
2.52
;
Security Insurance
Springfield F. & M.__
pU. S. Fire
Total
0.10
3.96
Washington
i Note:
world
for¬
States.
a
world
close
Wool Bill Vetoed
1.20
■<
5.26
1.17
Phoenix Insurance
Prov.
6.65
2.16
2.37
_____
5.12
3.37
v
It
the
Let*5
2.50
3.26
_______
constructive
justified."
opinion.
now
1.20
7.87
1.82
1.65
to
1.20
1.40
4.84
:
be of interest
may
1.00
.
1.78
■
It
viz.:
2.20
3.04
1.80
_____
2.00
;
4.81
4.01
1.58
No.
Fire
b.y
Mr.
this brief * discussion with Stand¬
ard &
Poor's general comment,
2.20
4.08
1.50
_____
Home Insurance
Ins.
gen¬
a
however, dividends were covered
1.53 times by total net
operating
profits.
:>-
'
National
coveredjdividends by
margin, nevertheless, total
operating profits were below
dividend requirements in the case
of
Franklin, Hanover, National
Fire, New Hampshire, and Secur¬
ity/ For the group as a whole,
/
3.50
/
3.43
'
4.13
_____
Hanover Fire
Hertford Fire
net investment income in
.
Boston Insurance
Fidelity-Phenix
led
.
:
under¬
peace.
tragic if Europe and the
rest of the world
even
world
the
3.7%
Opsr. Profits
$2.99
of
world
1946
Income
$2.86
and
so
net
Net Investment
Aetna Insurance
interests
I do
erous
though
II
1946
It is also
that,
the
We
some
would be
the
history for this American policy.
Johnston
5.0%
•
...
6-Yr. Av.
note
Eric A.
things he has said.
standing
about
a
restore
fairs.
going to
of the
in
his
4.2%
.
21
TABLE
to
am
and
and
false preachings that
America is going to
misuse its
political and, economic power in
273/4
4.75
interest
tions
free—to
But
,:
simply
leadership. She has adopted a bi¬
partisan foreign political and eco¬
nomic policy of helping free na¬
Mr.
or
motives.
underwriting results of the
361/2
3.00
__—___.
Washington
4.2%
45
> 233/4
1.00-
______
<
world
It is not my
'• t o
operating profits in 1946 below
the six-year
average.
This, of
course,
is due to the relatively
4.2%'
48
affairs
the
intention
panies out of the 21 had total net
'
New Hampshire
North
961/z
'
the
today.;
com¬
3.1%
26%
•?
3.00
.role
in
is nothing mys¬
sinister
or
policy of self-help.
My country has been inescapably
placed in a position of world
States
of
1
Ins. Co. of No. America—.
National Fire
terious
It is
con¬
•
eign policy of the United
the
its
day of the week, all is
Actually, there
very
United
Fire
Association, Franklin and Secur¬
ity. Average coverage of the divi¬
dend rate by net investment in¬
come in
1946 was 1.55, compared
with 1.45 by the six-year average.
"5.0%
29%:
1.20
-7
'
22
V
1.20
r
;
<"»•
50
:
l.oo
:
___.
_____________
4.0%
enth
fusion.
advice
about
net
ca¬
you
bad
higher
for all
was
gave
some
than the six-year average
companies
except
Boston,
'3.7%
551/4"
2.50
_________
593/4
5OV2
•
income
-
country.
He
for the "Six-
4.8%
73
2.20
;
......
Fidelity-Phenix
Fire
3.50
!
Insurance____
Continental Ins.
j
.
—
p-
about
my
in Table II,
3.8%
;
tions
r
Agricultural
not
are
A
com¬
be of interest to study
period used
we
Eurwpe recently had a distinguished visitor from the United
States, Mr. Henry Agard Wallace. Hfe left
you with some very bad
mis c o n c e
Year
Yield
/
'
48
$1.80
Paul; Fire
OA
current
The
6-27-47
.
St.
and
Picture Association of America
reactionary.
Defends American capitalism and
says
headed for economic
collapse.
Standard & Poor's refers to the
Price
Aetna
a
the figures presented
as follows:
Dividend
President, Motion
Mr. Johnston attacks Wallace
accusations against American
foreign
policy as being imperialistic and
reactionary. Says no nation which
reduces armaments and releases
territory voluntarily as U. S. has
done can be called
imperialistic. Scores Soviet expansionist
policy
as
"a huge glacier
steadily moving west," and denies. U. S. is
characteristic¬
is
Fire
Imperialism!
By ERIC JOHNSTON*
low yield stock; despite this
market handicap, it is one of the
few stocks which currently stand
above
their 1936
highs.
Other
stocks in the list which are priced
above 1936 levels are: Continental,
Fidelity- Phenix, Ins. Co. of No.
ally
the
of the
Annual
No American
between
range
Marine.
,,
in
reader of this
column, together with the annual dividend rate of each, the recent
asked price and the equivalent current yield.
Table
accompanying
Thursday, July 3, 1947
in
which
impediments
he
away.
-
kill
to
be
borders.
outside
On the
sev-
cleared
Those policies are build¬
security for millions of our
people. Those millions who own
stocks and
*An address by Mr.
Johnston at
■
BelgiumAmerican Society, Brussels, Bel¬
gium, June 26, 1947.
a
are
own
anywhere
to
.full resumption" o£ ;sugar; futures
contracts
our
happens
' luncheon
-
of 'the
ings
well
bonds; who have
accounts
insurance
as
and
who
policies
workers.
(Continued
are
owners
They
on
sav¬
hold
page
share
19)
life
as
in
Voluma 165
THE COMMERCIAL & FINANCIAL CHRONICLE
Number- 4608
have not
A*Back Up the Truman Doctrine-
(13)
yet been clarified or even great
by Administration, peace.
spokesmen.
There
.
-Whether
...
is
prevalent throughout
profound and wide¬
spread feeling of uneasiness and
the
Ex-Governor of Kansas
nation
concern
Former Republican Presidential candidate upholds foreign policy to block Soviet expansion and aggres¬
sion, but calls for a comprehensive constructive program to back it up. Wants more clarification of
Marshall Plan for European rehabilitation, and decries fear of by-passing United Nations, which, he.
Our
a
the world
over
situation.
country is against imperial¬
convinced that
patriotic
.
to
do
thing
in
his
to
sup¬
and
port
the
is
zen
personal
-Americans
ter
I
bit¬
as
family dif¬
ference
on
profoundly
am
mestic
vor
Alf M. Landon
national
partisan—
national
for¬
with
agreed
the
objective of that policy be¬
it was aimed against an in¬
of
that
I
basic
still in fa¬
am
objective.
But
and
attempts to conquer and
rule the world have learned to
their destruction—in the lifetime
generation — that when
Republic is in peril we Amer¬
this
constructive
The
real
test
of
Doctrine is yet to
the
Truman
come—probably
It is
icans have no
but
tions of Europe are in
other consideration
nation's safety and secu¬
our
rity. The American breed is never
discouraged.
is
This
for pessimism.
time
no
time to be on guard., We
are
the strongest nation in the
world.
American influence in the
JLt is
a
great as
world has never been as
The greatest problem
it is today.
of all at this time is the wise use
sec¬
great dan¬
ger of a
Communist, seizure of
power.
France and Italy are in
the coils of government upheavals.
What
will
our
government do
about that?
Has it a plan of ac¬
tion in accordance with
objectives
trine?
voke
of
the
the basic
Truman
Doc¬
It is not sufficient to
the
American
United Nations.
is
desperately
in¬
Every
eager
strength.
This is neither
that the United Nations fulfill its
nor place to review the
that
of
no
invoke
to
the
of
threat
demand
we
tional policy that was
frankly
believe
I
the
upon
or
it
outside the
to
a
definite, comprehensive plan and
execute it without any quibbling,
The popular thinking now in Ad¬
ministration
is
circles
to
under¬
*
That
is
fusion.
in
effect
And
trans¬
gram.
At
-
and super pro¬
the
purposes.
But realities are
should
be based
more
urgent. To me, it seems that other
certain
are essential if the
peace-loving peoples Of
steps
decent,
world
have
the
best
chance
war.
ple—Hungarians—Yugoslavs
and
Chinese, as well as Americans.
The common peoples of the world
do not want war.
It comes only
through the blunders
and
great mass of American
people view such outcries—espe¬
cially on foreign policies—with
disgust and disapproval.
But at
the
guards
time they feel that the
Administration
be
must
honest
same
their
full
knowledge and
understanding.
And, without
official attempts to minimize
The first step is to boldly and
vigorously push real and genuine
disarmament
with
all
Also,
such
national
unity
can
JvPrn^nt
tn
hp
hniH
wajlt ?heir g°Yernment to be bold
Suki^~lfRtU^he ^
council of the United
I
do not
Nations.,
as
pe"c|
-
ratio hoeus
attempt to fix ratios
mean
pocus—any
any
of any kind.
I mean, for the first
time in all history, an honest at¬
simple
to
bring
complete
about
The most
of restoring and
civilization — I speak
means
disarmament—seems
We
the
most
not
aggressively
pushing the most obvious design
of
are
international
under¬
standing and cooperation.
Honest
mutual
disarmament
is
more
than
the
next
step in the policy proposed
by Secretary of State Marshall, It
is
Stafe^m f™
to the real
safe¬
the
including inspection and
control by a reorganized security
difficult.
served and maintained.
erally assumed that policy imple-
dark
ambi¬
political
and
of their
fears
leaders.
of'State Marshal]6 made rfferfto 01^ be ™d i£ the AdministratLSE"fnat\ons IMS6 gen-'«°" „has a
people of the United
of
In that
group I include the Russian peo¬
heading off another
any
objective of the
it should
the recon¬
universal disarmament.
with the fantastic admin¬
the
on
tempt
istration of the UNRRA.
in
now
It
day.
to. include
struction problem than the atomic
one—for the former is much more
of
basic
becoming
every
broadened
be
preserving
the
is
need
France at least. I believe
tions
more intelligently the hazards involved.
Only in that
efficiently managed than was way can national unity be pre¬
ments
a
the
the
not
primary step in restoring,
the world but our own
only
country, to health.
steadfastly loi
y
j beheve j
voidng ^ gen.
realities.
There is no use fooling He leaves > many vital questions timent of the nation in
saying that
ourselves that the United Nations 1 still
unanswered—questions that the people are prepared to make
am
The
conflict
between
Commu¬
nism—Socialism—and
can
Capitalism
then be safely left to the mu-
(Continued
on page
26)'
the
time
same
great
The
apparently
and
case
from
committee
with
spare.
my
consulta¬
legisla¬
tive bodies of Britain, Canada and
tive
policy must be
the
renew
l
previous suggestion of
full
can
damage done by the ill advised
handling of our foreign affairs.
a new
its
and
not
or
That
we
are
on
Administration
European Union
a
should first find
we
out how much
blood
a
meaning at Marshall's declaration. |
The Administration is now em¬
table
the
cards
does not
write politically and financially—to the tune of 20 or more billion
the time
barking
the
on
that
its
The
fish
must formulate
It
lay
policies.
incumbent
now
Administration
cut bait.
the
of
is:
Americans
that people approve of dis¬
cordant and ill-advised criticism
United Nations.
?
is
mean
government proclaimed a na¬
our
of
Administration
the
when
Nations—especially
United
it
,
in Italy, Germany or France.
no
secret that those major
the
face
because
and frank with the country.
The
people know that great and grave
plan to
back it up.
the
nation
and
The Truman Doctrine ^dollars—spread over the next few decisions face
; \
needs that badly if it succeeds in years—some kind of a union of them.
the
nations of Western Europe.
avoiding another war.
They want those decisions made
prehensive
ruthless
of
of
no
I have earnestly hoped for a com¬
Two
ambitious
I
of
ternational evil.
each
other.
be
other considerations.
policy.
cause
purposes
cross
time
can
declaration
a"
basic
issues.
or
patriotic citi¬
a
It is
and
first
information
people who—in the final an¬
alysis—will pay the price.
The
today has any real power to en¬
of the world.
solution of the perils
that
as
the
force the peace
as
accepted the Truman Doctrine
eign
do¬
Freq uently
our
in
act
can
crisis." There
We
our
support
acted
my
citizen
the only basis
his
country.
have
American
an
aid
of
early
above all other consideration. That
govern¬
ment
declaring
of the Truman Doctrine I
every-
power
,
in
successful
more
But I
peace.
plan of Secretary
for
America.
to
"American
is
people also want
Attacks veto in U. N. Charter and calls for international
peace.
the
Marshall's
istic expansion. But the American
they
want peace they are prepared to
action for peace without Russia if
necessary.
accept the responsibilities to go
with enforcing peace.
But the
I am
talking to you not as a Republican. I am speaking as an American citizen. American people want to know
There is a growing realization that this is the year of crisis in foreign affairs. The Nation what the Administration is doing
to insure peace. They have a
realizes the world situation is
right
extremely critical. In such a situation it behooves every
is not capable of maintaining
enduring
for
-
discussed
By ALF M. LANDON*
says,
sacrifices
13
.Kremlin—through its weakness—
and fears born of that weakness—
is
That kind
over-reaching itself.
of
situation
create
can
'and terrific
This announcement is neither
sudden
a
an
offer to sell
nor a
solicitation of an offer to buy any of these
Debentures. The offer is made only by the Prospectus.
*
explosion. "However,
I
anticipate instead a long—ardu¬
ous—expensive road ahead of us.
the
Administration to the American
The information furnished by
$75,000,000
people regarding that road should
accurate and ample.
Instead
it has been too much like running
be
a
river steamer without lights or
shifting
acquaintance * withthe
£and bars.
'tc
Southern Bell Telephone and
Forty Year 27/s% Debentures
objectives of the Truman Doctrine
as
enunciated by the President.
As I understand it, that objective
is to block Soviet aggression and
not
I
itself.
dence
did not and I
July 1,1947
policy
Interest
do
payable January 1 and July 1 in New York City
as
that
consider
now
Dated
evi¬
wherever it may
expansion
Telegraph Company
supported the basic
I staunchly
interfering in the internal affairs
I do not consider the
of Russia.
Doctrine
Truman
as
in
way
any
challenging the right of Russia to
run its own internal affairs.
But
Price 102.80% and Accrued Interest
not carry
right to interfere in
the internal affairs of any other
that inherent right does
with
it
an.y
country—near or far—either by
fist—economic power—or
mailed
terrorist pressures.
•V Imperialist
totalitarian
Copies of the Prospectus may he obtained from only such of the undersigned as may
legally offer these Debentures in compliance with the securities' laws of the respective States.
aggres¬
sion of any kind has always been
abhorrent to the American people.
It is abhorrent because it is im¬
moral and because it threatens the
peace
of the world. Right is right,
is ^wrong.
The world
im¬
MORGAN STANLEY & CO.
and wrong
cannot live in peace based on
morality.
It doesn't matter what
ideology it parades under—im¬
perialistic aggression is still evil.
The world cannot hope for peace,
and
mankind
cannot
look
for
THE FIRST BOSTON
HARRIMAN RIPLEY & CO.
;
a
long
as
as
any
nation
immorality of aggressive
imperialistic expansion by force.
^An
address
10th
Junior
Banquet of the
of
Commerce,-
Philadelphia, June 2.6, ;194L..
)
i
SMITH, BARNEY & CO.
SALOMON BROS. & HUTZLER
STONE &
WEBSTER SECURITIES CORPORATION
7
;
UNION SECURITIES CORPORATION
by Mr. Landon at
Annual
Chamber
I
LAZARD FRERES & CO.
com¬
mits the
the
KIDDER, PEABODY & CO.
Incorporated
future of reconstruction and prog¬
ress
GOLDMAN, SACHS & CO.
CORPORATION
: rr.
•
t u
i
June
27,1947,
A
14
THE COMMERCIAL & FINANCIAL CHRONICLE
(14)
mutual
fund
investor
a
he
the
quarterly,
pays
count
can
four checks
on
if semi-annually, he knows
year
receive,
will
checks.
A Gentleman From the South
rising stock prices, the investor
frequently receives special dis¬
tributions paid from realized se¬
curity profits^
About no other
Speaks
By HENRY HUNT
an
panies.
He
refers
to
the
of
comment
the
SEC
which
calls
passed.
"National"
The
last
be
firmly
am
Group Securities, inc
a prospectus on request
week that
from your
known
holder
be
empt?
Lack
the
Investment dealer or
Distributors Group,
to play an increasingly
important role in the investment
of
money.
Why
for
instance
should an investor attempt to se¬
lect any particular bond or bonds,
except tax exempts, when he can
buy an interest in a supervised
portfolio of a large number of
bonds whose combined strength is
certainly greater than any in¬
dividual
issues
of
comparable
merit? Why should a corporation,
particularly, buy individual bonds
and pay the full tax on their in¬
terest instead of buying a bond
fund whose payments to a cor¬
Incorporated
63 Wall Street, New York 5, N. Y.
tax
ex¬
to
was
a
12
new
around Aug.
of the industry
group
Steel Shares.
National
is
VV
yield about 4%
to
the initial
on
\
price.
offering
National's
12th
Prospectus
your
upon request from
investment dealer, or from
of
something
NATIONAL
RESEARCH
120
SECURITIES
&
CORPORATION
BROADWAY, NEW YORK 5, N. Y.
good
new
an
innovation.
professor
business
and
.Poors
7.9%,
interest
Fundamental
the
and
as of July
1 9 47, ac¬
cording to an
announcement
underlying securities, if
a
June 28, by
Parker
The
for
received
'Invest¬
1,
Corporation of
the results of di¬
dividends
econom¬
ors
'
and
professional
management. While regular mu¬
tual fund dividends
vary with the
-
Incorpo¬
rated
on
speaks
e
consultant
10
Boston.
versification
on
b
came
Dividend
caption
Uni¬
ic1
■
,
ad¬
versity,.
The
;
'■ • ; H
No Mutual Fund Has Ever
f
Harvard
90
"
o
ministration at
1%.
as
the
index
highest
Such
sharply
Dollar
the
next
anticipated.
earnings may
now
that
maintained
for some
period
relatively high level
and that such earnings are
likely
to be higher than those currently
being
discounted (■ by
common
stock prices."
1
*
level
a
than
suggests
year
at
a
Diplomacy'—British View
By PAUL EINZIG
•
LONDON, ENGLAND.—A great deal has been said and written
recently about the so-called "dollar diplomacy."
Prof. S.
H. Slichter
between
and
E.
i
w
n
It is presented by
"
g
ially
On
June 30, 1947,
the agreement
Management Associates
& Co., Inc., will
Wr Axe
terminate.
who
at-
ble
to
define
As far
possible to
certain
from
cisms,
monetary policies.
The out?
standing example for its use in
this sphere has
•
::
States
criti-
various
the
to
means
part of the.
induce
other
countries, by means of granting or
withholding economic assistance,
to adopt (or refrain from adopt¬
ing), to change (or refrain from
changing),
to abandon
or
Investors Inc.
vxwwrw-:'
Affiliated
•y.-Y/S.
Fund, Inc.
Prospectus
M
(or re¬
certain
from
abandoning)
policies, in accordance with Amer¬
ican interests.
it, it is difficult
why "dollar diplomacy"
should
be considered
something
inherently evil—why it should be
denounced as immoral by quarters
systematically
employing
other
weapons in the armory 6f diplo¬
macy, such as attempts to intimi¬
date by open or implied threat
of force,
or
the encouragement
k §!
see
ities in
foreign countries to
industrial
unrest
While
war.
that
Lord, Abbett & Co.
INCORPORATED
the
"dollar
ly
and
such
unmitigated
or
merits
civil
even
weapons
evil,
cause
an
are
it would
seem
of
demerits
or
diplomacy" depend large¬
the
on
which
for
purpose
it
is used.'
New York
—
Chicago
—
Los
Communist
critics
"dollar
of
to
policies of convertibility and mul¬
tilateralism.
There is this differ¬
,
between the effect of "dollar
ence
diplomacy"
the
in
the
economic
Yugoslavia
political
and
sphere:
took
the
■
Even
trouble
if
of
pretending to turn pro-American
for
the
sake of obtaining muchdollars, there is nothing to
prevent it from turning once more
needed
anti-American
the
has
other
as
soon
been
as
the
received.
it would
hand,
as¬
On
not be
for Britain to revert to bi>*
easy
lateralism after
the
to
omy
adapting its econ¬
policy of
American
multilateral trading.
While polit¬
ical policies can be changed with
a
stroke of the pen, it is always
difficult to change economic
poli¬
cies.
Apart from a small though vo¬
minority, British opinion has
nothing against the use of "dollar
diplomacy" in a political sphere,
cal
though
even
that
few
ing results.
its
people
believe
it could produce really
On
application
sphere is
It
cism.
Angeles
assistance
made conditional up¬
the acceptance of the American
sistance
and assistance of subversive activ¬
upon request
was
on
diplomacy"
on
Financial
Britain
Einzig
•
their
endeavor
frain
been provided by
Anglo-American loan agree¬
the
Dr. Paul
dollar
United
or
within
diplomacy" is apt to be effec¬
of economic
ment.
as-
is
and
it is
as
it,
tive is in the sphere
-
meaning.
s
fear
The only sphere in which "dol¬
tacked it have
the
the Soviet Union
from
lar
taken the trou¬
i t
to
Russian sphere of influence.
They will accept the dollars and
will pursue the same policy.
those
have
unable
the
Yet-
of
none
be
would
pathy^towards
world
gers
it
through
and
peace.
that
influence the policy of any coun¬
something
ssent
to
Dealer
be
sharply in
more
months
ahead
earnings have
since the Ynar-
On the face of
Prospectus from your Investment
12
This
are
somethrn g
which endan¬
Sumner Huber Slichter, Lamont
predomi¬
stocks declined
full year decline of V2 of
Some of them showed gains."
well
at
1929.
increased
stock
contemptible,
Of Inc.Investors
investment
a
as
since
sinister
had
itself
currently
e
year
funds
a
drops
earnings of the
comprise the Dow-
fund;
Prof. SHer Is
Forty-
year.
balanced
above
cor¬
try which, whether through sym-
common
Passed
current
as
index declined
The
corporate earnings, generally,
may experience only a moderate
decline
unless I business
activity
well
investing
conservative
,
of
that
tend
newspape 1* s
and politicians
was a
Standard
stock
1929
summar¬
Industrial
will
Left-
representative
3.7%.
stocks
Jones
that
from
consecutive
nantly in
rate
factors
offset such added expenses in
considerable degree. As a result
"Letter"
on
of
to
Investing
izes its comments
Institutional Series, will,
as
outperformed the market for the
companies,
\>
number
Balanced Fund which is expected
and>. -professional supervision.
During the year 1946 on aver¬
age
the
investment
companies
one
the futher increase in the cost of
poration earnings as follows: "The
annual
ex¬
difficulty
of
maintaining earnings in view of
Street
Corporation's
con¬
of
r
Broad
the
production resulting from current
wage increases.
But there are a
ket began to decline about
tion
TRUST FUNDS
The
as" to
also bringing out a
bad year for many
investors, but it
fourth
fun.
earnings
derived
be
for investment companies because
it proved the value of diversifica¬
IATIONAL
Good
Earnings Highest Since
1, bring¬
type in
the following fields: Automobile
Shares; Aviation Shares; Building
Shares; Chemical Shares; Metal
Shares;
Oil
Shares;
Railroad
Shares;
Railroad Equipment
Shares; Retail Trade Shares; and
be
Mutual
in
with
the ownership of mutual funds, is
the only reason I can think of.
"1946
pressed
Honeymoon
a
decline
a
familiarity
of
benefits
85%
are
announced
"funds will
Corporation
offered
porate
OF
Definition of
„
ing the total of National Funds up
to 22. Ten of the new funds will
destined
SHARES
.
that
luck
sales
on
.
Securities & Re¬
National
search
convinced that
these open-end mutual funds are
STOCK
ating down to 2%
$100,000
and
over.
gradu¬
Harry and Doug.
Add 12 Funds
to
dicate
is being anticipated. In this
nection
concern
has
been
*
history of the United
during the last 50 years."
Mr. McNair also says:
RAILROAD
say,
been
ever
„
their
"probably the most im-Oportant single development in the financial
£:
"I
'
one
can
dividendhas
no
growth
States
securities
of
class
Howard S. McNair, of Courts & Co., Atlanta, Ga., recently gave
address on the advantages tfi open-end mutual investing com¬
diverse
is selling at an ab¬
normally low relationship of price
earnings. This appears to in¬
,
will be only 3%
of these
to
Series is designed for
wealthy in¬
dividuals, ? corporations,
fiduci¬
aries, insurance companies, etc.
The load
result
a
stock -index
common
may
be purchased up to
of the total portfolio.'
This
35%
As
ago.
trends, the Dow-Jones Industrial
stocks
in periods
of
portfolio will be
of
high
quality with bond and preferred*
predominating, although
dividend
two
Furthermore,
Thursday, July 3, 1947
The
the
in
other
the
last¬
hand,
economic
subject to much criti¬
is widely felt that the
conditions
on
which assistance to
economic
SHARES OF CAPITAL STOCK OF
diplomacy" in Britain and else¬
where object to its use as a mat¬
ter of principle.
They feel that
the United
States should
grant
Britain has been forthcoming have
been far too costly in terms of
unless the United States agrees to
a
less strict interpretation of the
uncondition¬
assistance
ally to friend and foe alike.
recent
statement
declared
that
it
Marshall
In
a
Tito
■
the
duty of
the Western Powers to assistYugoslavia, and that no gratitude is
ian
due
to
them
the
pour
The
50
local
map
dealer
no
torrent
xlesire
suspend
to
directed
abuse
of
against the United States, not
he obtained
investment
assistance.
Communists feel about the matter.
They have
Prospectus
for-their
Evidently he reserves the sacred
right of biting the hand that feeds
him, before, during and after the
feeding. This is in fact what the
F una s
from
was
or
Keystone Company
of Boston
Cong rest 5trcet, Boston 9, Mass.
Prospectus
your
may
be obtained from
local investment dealer,
or
sistance
PARKER
CORPORATION
are
and make it
will
THE
even
temporarily while the plans of
be
no
under
as¬
consideration,
quite plain that they
less
hostile
after
re¬
probable losses of markets for
exporters.
It is felt that
British
non-discrimination clause, "dollar
diplomacy" will result in hardship
on
countries
Communists
grievance
against
have
'no
"dollar
It
is
terms
if
macy.""' For they know it only too
imports
save
from
the
also
dollars.
that
felt
\
under
the
dictated
by "dollar diplo¬
macy," Britain stands little chance'
of
ever
balancing its interna-*
tional accounts and thereby be¬
coming independent of American
assistance.
However, in spite of
this, "dollar diplomacy" is not
denounced
is
real
diplo¬
who will
United States have to be curtailed
in order to
as
ceiving assistance than before.
The
consumer
prevented from satisfying his
needs through imports from other
It
ONE COURT STREET. BOSTON 8, MASS.
the British
be
thing
merely
something immoral.
criticized
shortsighted
American
point
of
even
as
some¬
from
view.
ari
'Volume 166
"1
Air
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
-
Transportation Progress
.
Mr. Babson
Taft-Hartley Labor Law in Action
llOGER W. BABSON
By
,
discusses
advances
in
By HON. FRED A. HARTLEY*
air transportation
U. S. Congressman from New Jersey
and points
plane crashes, safety in operations is
technical progress. Says time is approaching
when certain airplane securities should be an attractive purchase.
out, despite recent severe
increasing with
:
Co-author of
could count on taking 12 to 15 minutes for going a mile
years ago we
horse
by
buggy. Unless
could
we
ford
to
four
af¬
spend
hours
"commuting"
each
day, we
did
live
not
even
ten miles
from
away
work; 20
miles was out
our
of
the
ques¬
foreign
amined
by U. S. health
ties as he came into the
Infections
State
and
work
each
in
an¬
The
automobile, now with us
a century and still fur¬
nishing speedy transportation on
the country highways, has already
half
over
become
slow
from
the
ineffective
and
in
For example, to get
many ways.
heart
of
Logan Airport is
Boston
such
now
to
its
an un¬
certain process by automobile that
has
helicopter
a
making
been
flights direct to the airport from
a
roof at
The
the Boston Bus Center.
time
tween
involved
and
one
has
two
been
was
ton's
department
months
minutes.
A
heli¬
started by one of Bos¬
stores
some
Now, a fleet Of air
taxicabs is being predicted.
We are appearing to develop air
transportation, useful in peace or
war, on an immense scale. A new
troop transport plane is planned
to
ago.
50
carry
tons of
pleasure
going
another by
country to
rapid air travel
well
can
be
the
carriers of infection.
•
the
Conclusion
So
each
>
tions
tion,
but
problems
cargo
or
400
e
1
e c
of
the
even
amendment
AFL
of
the
troduced
which
The
bill
a
contained
similar to
the
new
responsibility to
and
commercial
rected
more
and
it
see
becomes
more
"
law.
all
a
Fred
A.
Hartley, Jr.
•Some
crossed
industries, such
demand
mand for a new labor
policy was
fully justified by events.
In fact,
we
can
only wonder at the pa¬
end
of truly
serving human health and
happiness. The time is approach¬
tience which the public exhibited
while the Congress explored fully
ing when certain airplane securi¬
ties
should
be
an
attractive
the complexities of
pur¬
labor-manage¬
ment relations.
At the close
LOS
George
Chronicle
war
ANGELES,
Mellon
E.
CALIF.
is
con¬
now
many
the
—
with Edgerton, Wykoff &
618
South
Street,
Spring
Wagner Act
merly
and
Mr. Mellon
with
Holton,
was
Hull
observers believed that
*An address
fore
for¬
the
needed
amend¬
Longan, Dunn & Philleo.
by Rep. Hartley be¬
National
Personnel
Co.
&
was
to the
ment to act
Three
of
days
the
of
adequacy
legislation.
threat
to
Federal
our
In
our
the
face
national
the
into
ers
Army. At that time
told the Con¬
the President again
Association
Directors,
City, July !, 1947/
New
'■
"I
of
York
gress
imperative necessity for labor leg¬
adopt
islation.
icy which will tend to redi|ce\the
"If
the
At
that
measures
recommended to
time
which
he
I
said:
have
that "the time has
a
will
enormous planes
"go through" in any
flying high above the
weather,
storms
because
their
of
All of these securities
neither
an
to
sell
nor a
solicitation of
an
v
•
(Continued
on page
appears as a matter of record only
offer to buy any of these securities.
andia
pres¬
NEW ISSUE
surized cabins.
Safety Increasing
The
four
crashes
recent
have
severe
dimmed
the
record of the airlines but
ber
that
as
cf
plane
safety
a
■c:~~i
391,076-Shares
remem¬
December,
1946,
airlines in this country had
record of no deaths from acci¬
seven
American
dents in the past decade. Our air¬
lines know that their very exis¬
tence depends on constantly re¬
ducing risk of accident. The Na¬
tional Safety Council announced
in May of this year that not a
Cumulative Preferred Stock, Series A, 3lh%
;
Convertible Prior
to
July 1,1957—Par Value $100
single death occurred in 1946 dur¬
ing the scheduled passenger flights
of
16 U. S.
Cf the: 391,076 shares offered to holders
airlines.
were
"
They are on the way to better
safety records with radar devices
of Common Stock of the Company, 373,773 shares
the exercise of Subscription Warrants issued to suth holders of
•
includ/ng 4,468 shares subscribed for through the exercise of Subscript
purchased by Underwriters. The 17,303 shares which were not subscribed
Common Stock,
an aid
to landing and in pre¬
venting collisions. Recently, How¬
as
■
tion Warrants
^
•
vy
..
t
through the exercise of Subscription Warrants and the 4,468 shares which were
subscribed for by the Underw riters through the exercise of Subscription Warrants pur'
;V -■■A:
chased by them, have been sold by the several Underwriters.
for
ard
Hughes of Trans-World Air¬
lines, offered to put his new anticollision safety device at the dis¬
posal of other companies as well
as
subscribed for upon
his
will
own.
A new type propeller
permit fast emergency stops.
General
corder
cords
a
Electric
puts
out
a
■
yy -
automatically re¬
flight, i This will help to
find out the cause of accident.
> y:;.
.yy
re¬
which
:.
Copies of the Prospectus pursuant to which the €feting
was
made may (bt obtained jrom the.undersigned*
•
•
*
It
reveal' actions of, the, pilot
and the plane. It is said that most
decent plane crashes have stemmed
will
from
'
errors
in
Air transportation
develops new
health problems. Our health reg¬
ulations can not be too strict. Just
"one
White, Weld &. Co.
human
judgment.
This means even greater care is
needed in selection of pilots. For
they must combine qualities of
character, high skill and respon¬
sibility. '
S-U';'- /•./■
Health Regulations
Blyth & Co., Inc.
Harriman
<.
'•
returning
with
a
rare
Oriental
Kidder, Peabody & Co.
June n, 1947.
Goldman, Sachs & Co.
Lazard Freres &. Co.
r
Stone & Webster Securities Corporation
Union Securities
louse, or mosquito can
such
diseases
as
yellow
fever, or typhus. We have heard
-in the past of the traveler to China
Ripley &. Co.
Incorporated
Smith, Barney & Co.
flea,
carry
Glore, Forgan & Co.
.
Corporation
to
number of stoppages of work and
accomplish these
having been sold this announcement
offer
come
comprehensive labor pol¬
promises
which
this
life,
proposed legislation drafting strik¬
Truman
troops. Without refueling, it will
fly more than 0,000 miles.
The
future
labor
of
you
will recall that President Truman
after the adjourn¬
Labor-Management
President
•
•
May. 1946
further revealed the complete in¬
between
The effort
of organized labor's stubbornness.
Conference,
govern¬
properly in the public
The railroad strike in
failed—largely, I believe, because
ment
Inept gov¬
interest.
industrial peace through
understanding
public interest.
inability of the national
endorsed President Truman's effort
labor and management.
steel and coal,
ernment interference revealed the
November, 1945 was an expression
of that hope. The public heartily
to promote
as
spoke to Congress and urged the
members of the Los Angeles Stock
Exchange.
it
ment and numerous bills had been
nected
Co.,
of the war,
generally agreed that all was not
well with labor-management re¬
lations.
Indeed, even before the
Edgerton, Wykoff Adds
The Financial
fellow citi¬
my
pn which reconversion and eco¬
nomic
stability depended, were
tied up in strikes without regard
Federal labor legislation. The La¬
bor - Management Conference
of
greater
chase.
Special to
my
proposals for
Unparalleld Wave of Strikes
legislation on ice.
How¬
ever, when the end of the war
Instead of labor peace which the
came, anxiety as to the soundness
country so desperately needed, the
of Federal labor legislation was
winter of 1945-46 brought an un¬
general.
paralleld wave of strikes.
Basic
their fingers and
hoped that self-control and re¬
sponsible action on the part of
legislation.
labor
and
management
would
Public indignation and the de¬
make up for the inadequacies of
di¬
to the
of
that
put other
war
for constructive and realistic labor
our
be
wish
ap¬
is
sure
.
clear
that scientific
progress
the
am
definitely the responsibility of the
Congress. What the American peo¬
ple want is action."
.
researches
Congress, it
labor
last
registered
of
human
In the small
safety and health.
developments and in the million
dollar
is
the
with
meet
measures
amending NLRA
some
provisions
those of
not
do
rep¬
zens—that the Congress formulate
of its own to carry out
the
desired
objectives.
That is
Back in 1940, Rep¬
resentative Smith of Virginia in¬
and
November
not,
or
favored
once
Congres¬
sional
development in trans¬
it
it
ends
fervent wish—and I
Wagner Act.
Con¬
gressmen
proval of the
lieve
Opinion
vidual
v
•
be¬
suburban delivery service by
copter
and women
men
Or
portation brings with it not only
its technical problems of opera¬
Old and the New
,
business
one
especially strict in
For
into
Congress which
designed to correct the in¬
equities and defects of NLRA. Be¬
over¬
pollSj editorial
opinion,
the
bulging mailbags of indi¬
be
must
the future.
ple.
to
other.
"
early
very
were
the
whelming ma¬
jority of the
tions
one
day in
of
authori¬
introduced
definitely
so
the
American peo¬
from
live
the
in
a
expressed will
country.
adopted by Congress last week, gives
national labor policy which has been long overdue.
I know of no other
piece of legislation within recent years which
stages are not easfjy recognized.
Our health regulations and inspec¬
modern
uncommon
.
country
resents
ex¬
was
anti-trust laws to labor contracts.
Labor-Management Relations Act of 1947,
.
this
Mexican
Supposedly, he
with
Babson
The
plagues.
i,
smallpox into New York traveled
on
tion, it is not
all open to
we are
by bus.
Today,
Jra nsporta-
Today
importer who this spring brought
tion.
Roger W.
laws nation-wide collective bargaining by applying
:
and
disease.
labor
law defends its provisions as fair to both labor and
management and as afford- f
for free collective bargaining. Asserts President now has
authority to prevent nation-' j
•wide • coal strike by immediately
setting up an inquiry commission and instructing Attorney General j
to enter injunction suit.
.Says if law cannot prevent threatened strike he will introduce measure to out- *
new
last chance
ing
new
In these days of helicopter taxicabs it is hard to believe that 75
»
(15) -15
34)
;
16
THE COMMERCIAL &
(16)
steps toward the solution
further
U. S. Declares
Thursday, July 3, 1947
FINANCIAL CHRONICLE
the problem before
of
Military Force May Be Necessary
I
Charges
Greek
I
In Greece
violate Charter
and threaten international peace
of
doubt the conclu¬
"(1) The Organization is based
on the
principle of the sovereign
Government
ensure
charged
that
her
northern neighbors were lending
support to guerrilla warfare in
to by
and
"(2) All
of
government
that
been
this
stitutes
con¬
matters
ous
ineffective
began
the
task
lapse
but
were
a
tionals
for
countries
these
of
of
factionalism
Bitter
we'
Warren
Austin
R.
fact
In
that the Charter also contemplates
had
been
en¬
by the enemy.
couraged
order to obtain assistance in
the restoration of democratic po¬
litical procedures, the Greek Gov¬
tion becomes aggravated to a suf¬
ernment after liberation turned to
a
vited
Commission
This
was
the first
appointed by the Security
be
to
make
an
on
the
spot
investigation. Because of the na¬
ture* of the charges this Commis¬
responsibility.
squarely this
France, Great Britain, the United responsibility. It has been pursu¬
one of
Mr. Austin's significantly States and the Soviet Union who
ing its investigation with vigor.
"tough" declarations in a gener¬ at Yalta had., pledged themselves Not
only did the Commission ob¬
ally "tough" statement—the full to aid liberated countries in re¬ tain
testimony
from
witnesses
text of which follows:
*
establishing political equilibrium. within the various countries but
ficient extent to warrant it,"
It
requested
sist in
«
these powers
to
possible and to hear the maxi¬
number
of witnesses,
the
investigating
teams which operated while the
France, Great Brit¬
Government, one of the most
serious which the United Nations
ain
United
my
upon
the
and
States
spent
two months in Greece at the time
these
been
called
of
The
action
Mission
*
elections.
This
Allied
reported that the results
which the Security Council takes
in this case will be of vital im¬
portance to all Member States of
the United Nations and
may be a
of
as
mum
Commission sent out
main body was collecting evidence
in Athens, Salonika, Sofia, and
Belgrade.
represented the will of the major¬
ity of the Greek people, in spite
,
decisive
the
the
factor
in
of
least
with
situations
before
us.
To
such
one
as
the
country at
our
—between the opportunity to pur¬
sue a peaceful course of national
reconstruction without fear and
the loss of its freedom and inde¬
pendence.
In the
EAM
com¬
coalition.
Greek
Request of Security
Council
;
In
the
letter
a
dated
Dec.
3,
1946,
Greek Government requested
that the
a
Security Council consider
situation leading to friction be¬
tween
Greece
who, it
was
support
to
northern
and her neighbors
charged, were lending
guerrilla warfare in
Greece
against
public
its
Altogether, the Commission and
seven investigating teams heard
256
some
witnesses
during the
of its work, and
accumulated approximately 20,000
pages of evidence and' other ma¬
terial. More than 3,000 communi¬
cations
received
were
against
people
struggle during
the Axis,
the
sacrificed
them¬
selves
by
Having completed its investiga¬
tion in the first week in April,
the Commission proceeded to Ge¬
neva where it spent approximately
two
months
in
more
integrity
evidence and in
of
Govern¬
sifting
prehensive report.,;
Greece.
The
Greek
ment
requested the Security Coun¬
cil to investigate this situation.
the
Commission from various organi¬
zations and individuals.
The
7
Commission's
task
}.
in
the
unstintingly.
Liberation
The Security Council considered preparation of this report was ex¬
found the country prostrate and the Greek
complaint during the ceedingly difficult. As a member
devastated.
ance
had
to
Starvation and resist¬
the
exacted
resources
and human lives.
munications
pletely
course of seven
meetings and on
occupying enemies Deq, 19 by unanimous action re¬
heavy payments in solved to establish a Commission
were
destroyed;
almost
Com¬
com¬
normal
eco¬
of
Investigation
to
ascertain
the
facts relating to the situation com¬
plained of by the Greek Govern¬
of this Council, I
congratulate the
their
examination
their staff
labors
port.
as
on
and
the results of their
expressed
This report
in
now
their
re¬
makes
it
This advertisement appears of record
only and is not, and is under no circumstances
to be construed to
be, an
offering of this Common Stock for sale
an
or a
solicitation
offer to buy any of such Stock. The
offering is made only by the Prospectus.
extent
Albania
of
the
representatives
from
the
of
supported
These
the
conclusions
assistance
had
been
charges.
stated
that
rendered
in
Yugoslavia to the guerrillas, tak¬
ing the form of training refugees
from Greece within the borders of
throw of the Greek Government
These conclusions state that the
Bulgarian
Government
t
provided
aid to the Greek guerrilla move¬
ment, principally in the form of
assistance in entering and leaving
Bulgarian territory, in the pro¬
vision of
transportation for guer¬
crossing Bulgaria to and
from Yugoslavia, and in hospitali¬
zation of guerrillas wounded in
rillas
Greece.
However, in certain in¬
Greek - guerrillas
were
given arms in and near Sofia.
These conclusions state that Al¬
bania also had assisted the guer¬
rillas.
Prior to establishment in
the
Spring of 1946 of the course
for guerrilla
Bulkes
at
leaders in the
in
camp
Yugoslavia, the Al¬
banian Government had operated
at Rubig in which Greek
camp
refugees received political instruc¬
tion
well
practical and theo¬
retical military training. Albania
as
as
had
granted assistance to Greek
guerrillas in the form of provid¬
ammunition
arms and
well
as
making available routes of en¬
try, guides and liaison assistance
?or
guerrilla groups returning to
from Albania and Yugo¬
Greece
slavia.
Charter Violated
is
the
duty of this body to
consider carefully the significance
of these facts in the light of the
Charter of the United Nations. It
that in committing
Yugoslavia, Albania and
Bulgaria have violated some of
the fundamental principles of this
Charter. I would remind you of
the purposes of the United Nations
contained
in
Article
1, among
apparent
end
a
June 27, 1947.
Alstyne, Noel & Co.
security,
and
...
international
that
to
and
to bring about by peace¬
in conformity with
principles of justice and inter¬
tlement
or
Van
maintain
To
national
be obtained from the undersigned.
en¬
international
relations
threat
the
of
or
use
force
against the territorial integrity or
political
independence
of
any
state,
or in any other manner
consistent with the Purpose of
in¬
the
United Nations."
1
I
not
do
interpret
that
think
should
we
the
narrowly
Great
Charter of the United Nations. In
there
times
modern
many
are
already know. In supporting guer¬
rillas
adjustment
law,
international
of
or
set¬
disputes
situations which might lead to
develop friendly rela¬
To
tions among
spect
rights
Yugo¬
Greece,
tions
was
designed to prevent, and
have violated the most important
principles upon which
organization was founded.
of the basic
our
am
mindful
Albania
the
of
neither
that
fact
or
I
Member
Bulgaria is a
United Nations.
the
of
This does not mean that they are
not
guilty of having used force in
of the princioles of
contradiction
the
United Nations.
The Charter
has
not
overlooked
the necessity
of
preventing Jhe use of force by
non-member
I
states.
Article
attention
to
provides
that
call
your
which
(6)
2
Organization
the
shall ensure that states which are
Members
not
tions
act
United Na¬
the
of
with the
accordance
in
principles of the United Nations—
I quote—"so far as may be.neces¬
sary for the maintenance^, of in¬
ternational
security."
and
peace
fulfilling its responsibility with
respect to the maintenance of
peace
therefore,
the
Security
Council must treat alike all states
In
using force against the territorial
integrity of another.
This, therefore, is the situation
with which the Security Council is
in
faced
the
existence.
has
second
of its
year
The Greek Government
that
charged
northern
her
neighbors are supporting guerrilla
warfare in Greece
against her ter¬
ritorial integrity.
The conclusions
for
nations based
the
and
principle
subscribed
eleven
eight
by
to
members
sion stated that
of
of
on re¬
equal
self-determination
of
peoples, and to take other appro¬
of
the
the Commis¬
Greece's northern-
neighbors have in fact supported
the
A
guerrillas in northern Greece.
Member of the United Nations
has
violated
the
principles
which this organization
breach of the peace;
"(2)
northern
in
slavia, Bulgaria and Albania have
been using force against the ter-:
ritorial integrity and political in¬
dependence of Greece. They have
in fact been committing the very
kind of acts which the United Na¬
are:
ful means, and
the
may
se¬
not
are
All Members shall refrain
their
stances
peace
Copies of the Prospectus
and
peace
recruiting and dis¬ ways in which force can be used
patching them to Greece for ac¬
by one state against the territorial
tion
with
the
guerrillas' units
integrity of another. Invasion b$r
there, as well as supplying them
organized^armies is not the only
for this purpose with arms, sup¬
means
for
delivering an attack
plies, transport guides, hospitali¬ against a country's independence.
zation,
etc.,
and
providing an Force is effectively used today
avenue
of escape for guerrillas
through devious methods of infil¬
fleeing from Greek Government tration, intimidation and subter¬
forces.
At a camp at Bulkes in
fuge.
'■
7;7
Yugoslavia, a specialized course
But this does not deceive any¬
was established designed
to give one.
Any intelligent person in
theoretical and practical training
possession of the facts cannot fail,
in guerrilla warfare. At this camp
to recognize the use here of force,
the refugees were
subjected to no matter how devious the sub¬
political indoctrination and propa¬ terfuge. We must recognize what
ganda looking toward the over¬
intelligent and informed citizens
"(1)
share
by
manner
a
Yugoslavia;
which
per
settle
disputes
justice
and
"(4)
although
(Par Value $1.00)
Price;$7.125
present
shall
in such
means
international
in
's
Common Stock
the
with
Members
dangered.
Commission's
such acts
Bowman Gum, Inc.
that
curity,
clearly shows that
It
268,875 Shares
mem¬
them
international
peaceful
documentation
as
of
lesser
a
Bulgaria, have supported the
guerrilla warfare in Greece." An
ing
\
to
and
and
a
members of this Commission
rights
resulting from
accordance
"(3) All
by the Commission it
is its conclusion that Yugoslavia,
the
drafting its com¬
in
ascertained
statements
or
course
order and the territorial
common
war
Greek
world in
this body to
of
action may represent the
difference between life and death
the
abstention. of
munist controlled
the
deal
one
organized
strengthening
confidence
effectiveness
grave
in order to cover as wide an area
sentatives of
this time has
to
consider.
a
as¬
tions.
to
had
observing nationwide elec¬
Approximately 1,500 repre¬
The matter before the Security
Council today is, in the opinion of
up
sion
The Commission met
was
Mr. Austin's Statement
eight of the eleven members
evidence
to
order to
the
of
Charter.
Commission
Work of Investigation
all
bership, shall fulfill in good faith
the obligations assumed by them
the Commission in this regard
was that "On the basis of the facts
to make any
Council
situa¬
enforcement action when
The Commission was in¬
coun¬
try and people that had endured
four years of cruel depredations.
of
over¬
the
nia and Bulgaria, and to call upon
officials and na¬
Members, in
to
and benefits
Greece. The conclusion subscribed
proposals that Albania, Bulgaria and
Yugoslavia
it might deem wise for averting a denied the
charges made by the
not sufficient in repetition of the border violations. Greek Government, the weight of
able to prevent
starvation and
col¬
were
themselves to rehabilitate
pacific
look
Yugoslavia, Alba¬
tigation.
the
cannot
of
other
and
contemplates
kind,
and
enormous
slow
UNRRA
widespread
Charter
dispute
and
information relevant to its inves¬
the
a
Greece
the Government
foreign aid
this
ac¬
of
UN."Although
settlement
in
conduct its in¬
vestigations within the territory
bi;cad authority to
habilitation.
the
by
rendered
had
given
This Commission was
ment.
nationwide reconstruction and re¬
consid¬
ered
administration
heart-breakingly
have
to
ever
standstill;
a
there
the most seri¬
been
at
was
cord with the policy of the Axis
occupying forces. After liberation
of
one
life
others:
among
equality of all its Members.
United Nations
June 27, the United States backed the Balkan Investigating Commission in charging that
Yugoslavia, Bulgaria, and Albania have be en using force against the territorial integrity
nomic
call your atten¬
to
ity of eight of the Commission's
members with respect to
the Greek charges.
The Greek
Through its representative at the Security Council's meeting at the
political
independence
of Greece, and
wish
eleven
action."
sion calls for "enforcement
aggres
a
sions subscribed to by the major¬
and security; and hence calls for prompt and decisive measures. Re¬
minds Council that threat to peace or act
this
studied
also
tion to the obligations of Members
in Article 2 to act in accordance
with
the
following
principles,
The facts elicited substan¬
report.
Representative Austin tells UN Security Council Rus sian satellites' help to Greek guerrilla
Substantiated
carefully
have
tiate without
J
priate measures to strengthen uni¬
versal peace."
it.
Two other
look
upon
is founded.
states which no doubt
forward
to
the
time
when
they may become Members of the
United Nations have acted in ccn-
(Continued
on page
33)
THE COMMERCIAL
Number 4608
Volume 166
its
up
own
enormous
FINANCIAL CHRONICLE
&
obligations
discounts
at
were
too
(17)
such ject and history of these bonds and
is he
con¬
supporting, as reported, the
proposed disappointing (and un¬
Peru's neighbor, President Ortiz, justified by any supporting evi¬
cut Argentina's foreign debt in dence) debt
adjustment plan? If
half by cleverly buying up the so, on what does he base his
sup¬
country's United States owned se¬ port? /
...
curities as their price fell on the
(5) What can the Foreign Bond¬
New York Exchange, which was
holders Protective Council, Inc.,
exactly what neighbor Gustavo do now in view of Peru's recent
spicuous to have been overlooked.
Securities Salesman's Corner
By JOHN DUTTON
•\
Every selling idea that works has as its basis a simple procedure.
The time tested method of
producing results in sales work is as fol¬
lows (1) Get attention from qualified
prospects; (2) Build con¬
fidence; (3) Offer something that will STIMULATE action.
There are all sorts of methods of doing these
things.
Some¬
times
salesman will create business by using a variation of differ¬
to the same problem but in order to be successful
three stages of a sale are always the same.
Attention—con¬
fidence—stimulate action.
Sometimes
\
his
men
teaming
achieve.
are
can
on
a good sales-manager who knows how to work WITH
exceptional results through a system of doubleaccounts that the salesman working by himself cannot
obtain
%is
In order to do
work
effectively however it is neces¬
that the salesman have certain qualifications, some of which
sary
done
ceivable
in
Chile.
"that
It
Peru's
is
incon¬
follows:
as
He
must
follow
leads.
Lazy
salesmen
who
expect
their
(6) Peru has had corrupt gov¬
ernment, but Peru has enjoyed
enormous profits from the
war,
and Peru was on the receiving end
South
U.
for
years
Roosevelt-Hopkins
solidarity program.
in
S.
Export-Import Bank, plus
additional
while the
billions of dollars sent to
America
loans
the
later
to
Peru
are
$85.7 million
fault?
in de¬
certain
comments
about
his
list
which
are
and
sound
should
naturally be helpful to him.
No direct selling is attempted
of the preparation for the ultimate sale.
All the salesmanager should attempt to do is build confidence and good will.
Keep this up for about two or three weeks.
By this time he is in a
position to judge whether or not certain changes in the holdings can
be suggested and he then has a SPECIFIC idea that should be put
before the prospects.
If it is possible for him to have had the pros¬
pect visit his office for consultation during this time so much the
at this stage
(7) It is neither dignified
better.
The
next
step is
a
His
call by the salesman on the prospect.
a variation of a simple theme.
His vice-president sug¬
that he call to discuss a certain suggestion which his firm
would
like to present to the prospect.
(This has already been
worked out by the office before the call.)
From here on the door
has been opened, good will has been created and a certain degree
approach is
gested
.
of confidence
established.
salesman
A
between
his
need
on
be
who knows his business
can
work back and forth
•
national
lodged in the foreign
If the investment is not
States, the
time
200
of
Peru has
as
more
than three times
many square miles as
able to
wipe out his obligation by
payment : of the 200), would
nia, but how
many square
A
no
nation
is
people?
more
entitled
to
the
wealth
national
for every
been
Califor¬
payment had paid only
for,-it, the debtor should be
originally invested."
It is
high time
ury, or some
our
State, Treas¬
other department do
more for our taxpayers and less
"Something for nothing" than an
and
G e o r g e
Wolf, to them; to try to get back some
President, U. S. Export Co., was of the tax money already loaned
everlastingly right last October and
stop pouring out more to na¬
individual
when he said:
"Certain is one thing, that we
cannot go on lending if we are not
to
be repaid.
Unwise interna¬
tional loans enrich neither the
who
gives,
nor
the
one
tions that do not
302 E. Grace
re¬
submit
that
would
it
be
our
Government to
shovel out any more
payers'
money
settles
of the tax¬
Y.-Ps. of
cans
Clark,
Journal
said
Jr.,
of
in
Interna¬
in the United States and the
sort
of
operations under¬
taken by them in foreign coun¬
large force en¬
tries.
Where the enterprise is do¬
gaged in examining transactions
mestic, the national wealth is not
on the Stock Exchange and
over
much concerned with who, among
the counter that could get the an¬
the people of the' United States,
swer.
shall gain or lose with reference
(3) What are Peru's actual cur¬ to that enterprise.
If 'A' loses to
rent foreign trade and -internal 'B'
in such an
investment, the
money balances?
property being still in the United
(4) Is Ambassador Prentice States, the national wealth is not
in any way impaired.
Cooper fully informed on the sub¬
However,
same
Blyth
&
Blyth & Co.
Co.,
Wall
14
Inc.,
Street, New York City, announces
that Alvin J. Schlosser and Rob¬
so.
Reuben
"American
(2) Who hopght the $90 million
referred to in known facts No. 5.
Schlosser & Fisher Are
to Peru until Peru
present debt on an
equitable basis or proves that she
J.
x
June 27, 1947.
her
cannot do
St.,
un¬
wise, unjust, unfair, uncalled for
and altogether reprehensible and
dishonest for
"thank
Richmond 19, Va.
ceives and they accelerate world
misunderstanding."
I
say
BERKELEY WILLIAMS.
one
who
even
you."
W.
ert
Fisher
have
Vice-Presidents
Both have
for
some
the
sales
in
been
the
been' with
time, Mr.
buying
Fisher
of
elected
company.
the
department and
charge
v
,
a
Dreyfus Co. to Admit
Jerome K. Ohrbach will be ad¬
mitted
to
limited
partnership in
Dreyfus & Co., 61 Broadway, New
York
York
City, members of the New
Stock
Exchange,
on
10th.
prospects and his office, calling his sales-manager if
telephone from the prospect's office or home, and
This announcement is neither
an
offer to sell
nor a
solicitation of any offer to buy securities.
The offering is made only by the
the
Prospectus.
NEW ISSUE
procedure of building up qualified leads and then turning them into
customers.
Advertising, pre-approach mailings and conversations
telephone continually keep the salesman supplied with leads.
a plan is put into operation it can continue to function
with few changes. The main idea is to get a sales-manager that can
do his part and find salesmen who know how to accomplish their
end of the job.
It isn't something that can be learned in a day,
Some men could take a campaign like this and do more business
on
250,000 Shares
the
Once
such
General Foods
accomplish in any other mannqjv* One thing
is sure—if you work it right—it will work.
But it won't produce
for those who would take excellent prepared leads such as these we
Corporation
than they could ever
$3.50 Cumulative Preferred Stock
(Without Par Value)
suggest here and let them lay around in their desk to gather dust.
If most salesmen put in half as much work for just one week as
other men do in many other lines of endeavor they might learn
something from such an experience and that is YOU GET OUT OF
WHAT YOU DO EXACTLY WHAT YOU PUT INTO IT.
Price $100.50 per
Complains Peruvian Bondholders
Not Given ^Square Deal11
(plus accrued dividends from July 3, 1947 in
(Continued from page 4)
A copy of the Prospectus may
foreign Bonds or Securities in the^
United
States"
established the the money but forgot the bonds.
(4) In 1945 Peruvian Finance
Pacts
that
(1)
Peru
received
around 90% for the bonds and (2) Minister Carlos Montero on an¬
that the bonds had been issued in other mission to borrow made a
a
perfectly legal manner.
(2) They have been in default
since 1932.
(3)
In
April,
1942,
when
the
similar announcement.
in
the
five
Underwriters
at
Peruvian Finance Minister visited
York
Washington to negotiate terms for
American financial assistance to
Peru in connection with the war
may
effort, he announced that some
resumption of interest payments
an the
defaulted Peruvian bonds
ated, because, Peru has had finan¬
cial brains of a high order in her
years
Blyth & Co., Inc.
would be undertaken soon.
be obtained within
"
•
Kidder, Peabody & Co.
July 1, 1947.
share
of deliveries made after that dats)
any
State from such of the
Lehman Brothers
The First Boston Corporation
/
government for several years. The
He got safety and certain profit in buying
case
regularly distribute the Prospectus within such State.
Goldman, Sachs & Co.
prices ranging from around 7 to
around 34 and some of the bonds
have undoubtedly been repatri¬
past
as
-
(5) $90,561,000.00 of the bonds
have changed hands on the New
York
Stock
Exchange
in New
Mr.
New York
of
department.
firm
Schlosser in
sometimes
ground has been prepared before the call and how efficiently
the salesman works in turning good leads like these into sales.
Another excellent result of such a plan is that you follow a set
by
which had
dollar
the
by working together in this way it is possible to close
business on the first or second call.
It all depends upon how well
an
wealth
national wealth has been by that
much depleted.
For example, a
800
tional Law," January, 1940: a,.
(1) How many bonds have been
"There is a certain fundamental
repatriated?Such information is
difference
between
enterprises
necessary to establish amount of
and investments made by Ameri¬
actual present debt.
has
country.
the
returned to the United
deplete
nor
Some unknown factors are:
SEC
of
is
nal loans?
creditable for Peru to boast of im¬
The
outlay
the
%
,
make
This bond investment is
ent.
which
(7) Why has Peru ignored the
safeguards for some of its exter¬
hemisphere
sales-managers to find the prospects, and then make the sales
for them are a dime a dozen.
They will never make a Success posing government buildings, "im¬
economic and financial
selling securities or anything else.
A salesman must be flexible in proved
palatial
homes, hotels,
his approach.
He must know how to build up the man in the office status,"
who is going to put in a few licks for him after he has taken the casinos, country clubs, night clubs,
race tracks, boulevards and bath¬
first step.
You can always sell your firm, or your boss, or your
partner in charge of research much more effectively than you can ing beaches (read the magazines
"El Arquitecto Peruano" and "El
sell yourself.
He must, like all good salesmen, have a sixth sense
which enables him to qualify prospects, sift the wheat from the Turismo"), and to send jumping
teams to participate in Madison
chaff, and know when to try for the order. Timing, in other words,
Square Horse Shows, but when a
is important here too.
If you have one or two men in yotir sales
poor foreign investor in its gov¬
organization with the above qualifications here is a selling campaign
ernment bonds, who has waited
that has possibilities.
'
t
Advertise in your local papers or through the mails and offer patiently for 15 years asks for
some
payment, he or she be¬
either up to date statistical reports on holdings or portfolio analysis.
ing at a safe distance and impo¬
Many investors who have been buying securities recently have in¬
tent to help himself or herself,
curred substantial losses and are naturally concerned about "the out¬
is given scant consideration.
I
look for the pets of yester-year that have become the not too wel¬
If a sovereign country refuses
come house guests of today.
Go over the lists which you obtain and
to honor the terms of its external
do a conscientious job of appraisal and analysis.,
This takes time
debt there is actually nothing that
but the comments you make and the type of reply you send to the
the individual bondholder can do
prospect has an important bearing upon his reaction to your first
about it, but look to his govern¬
contact with him.
(This is the part of your campaign where you
ment, which in this case is the
get attention and start to build confidence.)
United States, for protection.
;
Next your sales-manager should write or telephone the prospect
and
try the situation is wholly differ¬
bondholders?
foreign government borrowing a
dollar and paying 'back 200 (on
(6) Will the U. S. approve the
$25 million now desired from the, the theory that since the particu¬
World Bank, the $30 million from lar holder of the obligation at the
Brains didn't notice that.
of the
where the American capital is in¬
vested in bonds of a foreign coun¬
offer direct to the
Financial
a
ent approaches
the
had
17
Harriman Ripley & Co.
Incorporated
Smith, Barney & Co.
July
.
THE COMMERCIAL & FINANCIAL CHRONICLE
(18)
18
Pere
Marquette,
Nickel
Wheeling & Lake Erie
Ohio,
Plate and
all
were
Railroad Securities
purchase
to
John
W.
President
Davin,
of
Nickel Plate and Chairman of the
Board of Wheeling
& Lake Erie,
said in Cleveland last week that
committee
of
directors
of
Plate
appointed to study
liad had one meeting.
a
Nickel
in
Wheeling will give the
Nickel Plate ownership of 68% of
the
subsidiary's
stock.
Nickel
Plate already owns 246,145 shares
of
Wheeling
common
purchased
was
earlier
from Chesapeake &
tuting 72.9%
(part of it
this
of the entire
Another 17.6% is owned
road
year
Ohio), consti¬
Corporation,
issue.
by Penn-
leaving
less
10%
will
own
shares
This
ing.
convertible
Probably
control
The
possible
merger
a
once
and
this
block.
holders
Bonds
the
of
dealt
and
first -five
2
New York 4,
Nickel
negotiating a merger, then,
would appear to be in devising an
N. Y.
of
1947
com¬
Plate
preferred is
on a
now
regular $6.00
reduce the accumulations
through
The full $6.00 was
paid out of 1946 earnings ($5.00
■
considered
months
basis although it is not expected
that any attempt will be made to
cash payments.
instrumental
of
it
was
followed
in
each in
blocking the earlier merger pro¬
posal in which the Chesapeake &
Teletype NY 1-1063
months
considered to be
The
Nickel
Plate
preferred
(360,578 shares outstanding) is all
publicly held. It is this group that
was
Telephone BOwllng Green 9-6400
five
pared with $685,527 a year earlier.
exchange of securities acceptable
to holders of Nickel Plate pre¬
15 Broad Street
the
through May 1947 preferred earn¬
ings amounted to $9.88 compared
with only $0.36 a year earlier.
Wheeling, which earned $8.18 a
share on its common in 1946, re¬
ported an increase in net operat¬
ing income to. $2,784,387 for the
lem in
GUARANTEED RAILROAD STOCKS-BONDS
Even
prospects,
merger
For
common.
is owned by Chesa¬
ferred.
the
$15.44 a share on its pre¬
ferred and, without allowing fordividend
arrears,
$10.09 on its
peake & Ohio. The only real prob¬
Special Securities
prices, of
advancing
earned
With respect to stock¬
Nickel Plate, 57% of
common
tion of
of this
paid in January
by
1947)
distributions of $1.50
April and July, 1947, out
year's earnings.
the
The.
Railroad
•
Equipment Trust, Series Z
following
To
mature
semi-annually $300,000
on
each January 1 and July 1, 1948
to
1957, inclusive
unconditionally guaranteed as. to payment of par value and dividends by
by Chicago, Milwaukee, St. Paul and Pacific Railroad Company.
These
Certificates are to be issued under an Agreement to be dated as of ]ulyi,
1947, which will provide for the issuance of $6,000,000 principal amount of Cer¬
tificates to be secured by new
standard-gauge railroad equipment estimated to
cost not less, than $8,000,000.
has
been
the
to
mount interest of
I
have
this
and
concern
tolerance
sustain
law
become
from
only such ofjhe undersigned and other dealers
as
lawfully offer these
may
with
accordance
in
of our
We must all respect
Board that
the
they will seek to give
within
administration
efficient
their power.
The persons
who
to be
are
ap¬
pointed to the new offices created
the
under
with the
it
I regard
importance
utmost
R. W. PRESSPRICH &. CO.
L. F. ROTHSCHILD &, CO.
'
FIRST OF MICHIGAN CORPORATION
FREEMAN &, COMPANY
In
JULIEN COLLINS & COMPANY
WM. E. POLLOCK &,
of
THOMAS & COMPANY
ALFRED O'GARA & CO.
F. S. Y ANT IS &, CO.
INCORPORATED
To be dated July 1,1947. Par value and semi-annual dividends (January 1 and July 1)
payable in. Chicago Definitive
Certificates, with dividend warrants attached, in the denomination of $1,000, registerable as to par value. Not redeem¬
able prior to maturity. These Certificates are offered when, as and if received by us. It is
expected that Certificates in
temporary or definitive form will be ready for deljvery at the office of Ha!seyr Stuar-t & Go. Inc., 123 South LaSalle St
Chicago 90, Illinois, on or about July 23, 1947. The information contained herein has been carefully compiled from
sources considered reliable and, while not guarafateed as to completeness or
accuracy, we believe it to be correct S3
of this date.
in
eco¬
If it should reach
us.
serious
We cannot afford such a result.
It
is
effort to
maintain
make
indus¬
provisions
under the
peace
to
duty
solemn
our
every
law.
new
We must all do our part.
Signs Rent Bill; 15% Increase Permitted
Fears
sharp increase in
prices.
On
June
President
30, just one
Truman
day
signed the
before the rent law was to expire,
Rent Control Bill, and in a mes¬
new
to Congress said he did sot>merel.y because "it was the lesser
sage
of
two
evils."
He
the
attacked
"a step
as
backward" in
provision, which allows
agree with landlords
for a rent increase up to
15%,
provided a lease is renewed for
period extending throughout 1948.
"This is voluntary only so far
as the landlord is
concerned," the
tenants
to
President
stated.
"Many tenants,
however, will feel that there is
choice.
rally
The
no
will
natu¬
that unless he
fear
enters
a
to
tenant
lease he
even
will be sub¬
more
exorbitant
when,, rent control
ended. Whenever a vacancy
curs
thd landlord can refuse
rent except under a lease
will
press
whether
or
is
oc¬
to
provid¬
Many
for rent in¬
not
there
is
adjustment. Severe hard¬
will thus be imposed
on
tenants. The hardship will
particularly acute in the case
who comprise such a
large - portion of those seeking
of veterans,
housing
The
accommodations."
President
also
criticized
what he called "the virtual elim¬
ination
of
controls
which
have
John F.
Partner in Marx Co.
Marx
York
nounce
been admitted
to
general
partnership in
the
con¬
Mr. '
firm."
Reilly,''who
his
made
has
office
with
Co.
&
Marx
1
since
a s
t
April when he
elected to
was
membership
the
on
New
Stock
York
Exchange, was
formerly
President of J.
F.
Reilly
&
orig¬
John F.
Reilly,
,
Co; Inc.,
inally founded in 1933.
Marx & Co. also announces that
Raymond deClairville, a member
oflthe Stock Exchange,-has re J
tired as a general partner in the
firm.
addition to
In
direct
from
non¬
deferrable
Co.,'37 "Wall Street,"
City, members of the
Stock Exchange; an¬
that John F. Reilly has'
York
New
the
and
&
New
prevented the diversion of build¬
essential
Reilly Is
wire to
firm
now
New
an
office in and
Birmingham, Ala.,
has
York
a
to
direct
wire
Chicago's
Straus & Blosser.
?
struction" and expressed the fear
it may lead to further increases
in
building
cost^. In his message,
Mr., Truman
also
recommendation
reiterated
for
his
further
Merrill Lynch Adds
(Special to
The
Financial
Chronicle)
leg¬
islation to provide low rent hous¬
ing and to encourage private in¬
BEACH, FLA.—Carlton
N.
Baumgardner, Jr., and Jay
George have been added to the
vestment
July I, 1947,.
result only
can
dislocation injurious to all
proportions it would threaten the
stability of our economy and en¬
danger the peace of the world.
ing materials from homes to
MASON, MORAN &, CO.
wages
welfare
mutual
their
it will lead to substantial increase in rents and
CO., INC.
THE FIRST CLEVELAND
CORPORATION
fair
Message to Congress, he calls it "lesser of two evils."
rental
McMASTER HUTCHINSON &, COMPANY
time
nomic
trial
be
INCORPORATED
ical
of the
management and labor, and
who can be depended upon to
many
GREGORY &, SON
as
serve
of
ship
(INCORPORATED)
time,
that persons be selected for these
offices who have the confidence
need for
OTIS &. CO.
this
will
selected
be
objective.
the
of
as
will
Act
same
creases
HORNBLOWER & WEEKS
at
experience.
At
at all others, they
by
best by working
-
Act the fairest and most
new
landlords
HALSEY, STUART &, CO. INC.
production
tested
being
together with full
recognition by each of the legiti¬
For my part, I want to make
mate rights of the other.
it unmistakably clear that, insofar
I call upon labor and manage¬
as
it lies within
my
power
as
ment, therefore, to exercise pa¬
President, I shall see that this law
tience and moderation in accom¬
is well and faithfully
adminis¬
modating
themselves
to
the
tered. I have already received the
changes made necessary by the
assurances of the present members
Act.
Industrial strife at this crit¬
of the National Labor Relations
provisions.
its
ing for the rent increase.
securities in such State.
It is
>
while the effect of the new Act is
President Truman
the constitutional processes
Government.
arbitrary attitudes.
steady
It has
land.
Neither
in the interest of both to maintain
the
of
law
play.
labor will achieve
ing to
the
now
nor
Act to gain unfair advantage or to
effects.
is
fair
and
long-range benefit by seek¬
use the provisions of this
any
to
Nevertheless,
it
management and la¬
as
management
my
as
a
are
to
legisla¬
tion
as
concerned, there is a vital
responsibility upon them to com¬
ply with the law in a spirit of
my
objections
its
Insofar
bor
ex¬
pressed
the nation
whole.
increases
Issuance and sale of these Certificates are subject to authorization
by the Interstate Commerce Commission.
The Offering Circular may be obtained in any State in which this announcement is
circulated
Taft-Hartley-
fairly with both. Above all,*
! they should understand the
para¬
veto.
jected
yield 1.10% to 2.20%, according to maturity
the
deal
Presi-
dent's
into such
Priced
to
L
fight against inflation and
sharply criticized the "voluntary"
endorsement
.
reference
increase
To be
■
26, President Harry S. Truman
Hartley Labor
Bill
v
'
June
the
(Philadelphia Plan)
:
with
on
statement
Taft-
measure
V/%% Equipment Trust.Certificates
labor and
Promised careful selec-
measure.
offices provided in law.
new
,
'
Chicago, Milwaukee* St. Paul and Pacific
on
Labor Law:
Truman
$6,000,000
for
men
At his news conference
read
of
strong
by the company and its
subsidiary. Last year Nickel Plate
of this amount the bulk is held in
one
course
realized
obviously
present no great difficulty. Simi¬
larly, holders of only 27% of the
dealt with,
within the
however, this interest would be
fully warranted on the basis of
the
wide
earnings gains being
could
must be
at
without
should
be
growing realiza¬
may
be
the Nickel Plate securities.
fairly expeditious
negotiations
are
shares will have to
with
out
activity,
ing convertible preferred presents
no problem as the stock is callable
at par in any event. A As to the
prior preferred, holders of only
670
ing themselves to Taft-Hartley
passed by
Congress over
merger
conference, calls
news
con¬
incentive for the recent increased
Treatment of the Wheel¬
started.
the
the current year has been a
preferred
situation
present
stock
common
this
that
worked
is callable at par.
make
the
Chesapeake & Ohio.
tion
the
of
of
Plate
trol by
5Vz% convertible preferred out of
a total of 102,140 shares outstand¬
common
Guaranteed Stocks
16,458
dilution
material
Nickel
read at
management to exercise patience and moderation in accommodat¬
of
ly that an equitable and accept¬
able
security exchange can be
worked
out
for this
preferred
stock and its arrears without any
outstanding with the
general public.
Following con¬
summation of the purchase re¬
cently authorized by the Commis¬
sion, it will own virtually all—
115,423 shares of the 116,093 shares
outstanding—of the 4% non-call¬
able prior preferred.
Finally, it
a merger
Acquisition of the remaining
Chesapeake & Ohio stock inter¬
est
than
President, in statement
many
analysts that
have followed the situation close¬
remaining stock interest in the Wheeling.
The Commission specifi¬
cally stated that the authority was granted in order to protect the
Nickel Plate's interest in its sub--^
:
sidiary and to aid in consumma¬
tion of a merger now under active
consideration.
Meanwhile,
Mr.
any
opinion
Chesapeake & Ohio its
from
Law: Truman
plan of merger, involving
as
it will an exchange of secur¬
ities, will have to provide for
these dividend arrears.
It is the
prospective merger of New York, Chicago & St. Louis
(Nickel Plate) and Wheeling & Lake Erie took a long step forward
late last week when the Interstate Commerce Commission granted
permission
Respect Provisions of Labor
Plate preferred has accu¬
mulated preferred dividend
ar¬
rears of $84.00 a share.
Obvious¬
The
former
Must
Nickel
ly,
the
The
combined.
be
to
Thursday, July 3, 1947
staff
of Merrill
Lynch, Pierce,
Fenner & Beane, Lincoln Building,
Federal
a******'#
in
rental
insurance.
housing
by
,
MIAMI
Volume 166
Number 4608
THE COMMERCIAL & FINANCIAL,
CHRONICLE
vide
No American
Imperialism!
(Continued from
omy.
ists.
namic
■'
.
I'm
■i
the
proud
to
be
American kind
of
total
a
correct its
can
ual
state
has
Under
system, the individ¬
alternative
no
but
adapt himself to the system.
der
kind
our
system
of
Un¬
capitalism,
economic
me
Wallace
fore.
who
men
I am proud to call myself a
capitalist because ours is a par¬
definite
moves
bolster
our
ticipating
capitalism
times.
riches
lives of
the
stead
of
rich.
Our
which
the
making just
kind
making the
of
en¬
in¬
many
few
a
men
capitalism
common
in
man
is
the
United States uncommonly happy
and uncommonly prosperous.
Do I sound
,
like
salesman
a
for
American jcapitalism?
Let me as¬
sure you I'm not.
It needs no sell¬
ing.
The United States is a suc¬
cess.
Wallace
Mr.
place
Full
a
when
find
can
earfh where the
on
any
com¬
mon-man
has more of the good
things of life than in the United
have
made
by
abandoned
the
policy
complete laissez faire.
ing,
we
tive
with
combined
,
marked
Under
do¬
so
private
opening
the
of
initia¬
a
economic
our
act,
advisors
is
barrier
no
to
united freedom front.
a
vs.
Treasury. At intervals these gold
coin sales were
suspended on the
ground that demand was so great
that the Mexican mint could not
-
Communism
Don't let
anybody tell
italism
you
that
today is
the only great issue
cap¬
communism.
versus
keep
That's
The
story.
hour
is
the
the secret
enslaved
versus
secret
$83
as
ballot
be paid for them.
It is believed
that the net profit of the shipper
probably averaged no more than
4% to 5% on gold transactions.
with the demand.
The
police; free
return
than
men versus
freedom of action
men;
to
ment
something
for
the
gold
had
be
to
making
in
dollars and because of restrictions
fuedalism.
and other
difficulties dollars
Bank
of Mexico, though,
large profit on gold co.n
sales in the past year, states it
facilitated such sales as part of
the bank's plan to stop speculators
an
ounce, the profit of the
was far less
than indicated
by the price. Pay¬
versus
be used to get the dollars,
substantial premiums had to
and
supplier of the metal
a
worse
issue of the
supreme
up
had to
While gold is reported to have
been selling in the Orient as high
important, but it's not the whole
from
were
a
smuggling
gold
out
country.
It
1
•
'
of
eco¬
keeps
its
THE NATIONAL CITY BANK OF NEW YORK
the
pulse
business, checking
every symptom and reporting its
on
of the nation's
states
of
health
1812— 135th ANNIVERSARY— 1947
to 7 government
Head
States, then Mr. Wallace is right, and to the people.: A comparable
I am wrong.
group has been established in the
» f
? How can you call reactionary a
Congress of the United States to
fanatical in its devotion
so
the
to
ideal
of
individual
lib¬
erties? v One of the first American
flags
in
and
emblem of
ourselves,
freedom
of
on
for the
study and watch the nation's
nomic
on
indiv¬
health
and
to
Office: 55 Wall Street, New York
and
ups
downs
do
eco¬
r
have
we
cushions
more
against
sharp fall in business activity.
We have adopted a
program of
a
idual and we can't imagine tak¬
ing away the freedom of action of
anybody
else.
We
don't
want
anybody to tread on us, and we
unemployment compensa¬
tion; we have guaranteed bank
deposits. We have adopted a so¬
hate
cial
security system under which
old
age
to
anybody, anywhere,
anybody else.
f Human life is precious in my
country. It is cloaked with great
dignity and great protections. In
America, men are more important
tread
see
on
than
machines.
take
precedence
.rights
property
they, come in
If Mr. Wallace
place
common
has
man
liberties
earth
on
and
freedoms
rights
over
whenever
conflict.
any
Human
can
find
where
the
personal
individual
more
more
than in his
United
own
liberal
there is
the
benefits
doubt in my
of the system
base
broadened
and
more
more
minimum
against a collapse in
by putting
"floors"
at
wrong.
take
final pot shot
one
this
charge that the
States is reactionary.
I
afraid
am
United
Wallace
Mr.
may
(Direct
Obligations
State
agriculture
the
under
we
Wallace
tackling
are
boom
didn't
and
tell
Stock
even
one
outside its
the
of
bor¬
own
civil
liberties
_and personal freedoms which be¬
longs to Mr. Wallace and to me
Items
"and
to
all
Americans.
Certain
'countries which Mr. Wallace
con¬
siders progressive deny this free¬
dom
of
lace
had
expression.
been
If
Mr.
Wal¬
citizen of one
a
of
:them he could not have returned
safely after his attack
on
land.
had to be¬
He
come
would
have
his
own
ex-Vice-President
an
in
exile.
U. S. Not Headed for Collapse
Now
tion
let's
Number
United
States
economic
Mr.
ful
but
examine
Three—that
is
headed
the
for
an
collapse.
Wallace
picture
how
Misconcep¬
-
of
you
America's
reliable
a
dole¬
future,
economic
an
'prophet has
Mr. Wallace been
'proved to be? When he was Sec¬
retary of Commerce, Mr. Wallace
predicted there would be eight
million unemployed in the United
States
immediately after the
war.
contrary.
happened
was
quite the
Instead of having eight
.
$4,720,475,216
,
217,046,678
Accept-
on
Bills
ances and
$27,065,226
,
Less-.OwnAccept-'*
93,843,501
•
Portfolio
ances in
.
15,354,191
1,181,679,629
.
Securities
and
•3,096,927 O.
'
'
'
r,
.
Reserves
for:
for
Unearned Discount
13,366,224
Unearned Income
6,900,000
.
Other
4,695,686
.
Interest, Taxes, Other Accrued
Expenses, etc,
.
7,000,000
,
.
Branches
.
.
.
7,528,414
Surplus
.
,
.
3,494,582
Undivided Profits
........
.........
$5,044,245,923
.
Figures of Foreign Branches
the Dairen Branch which
are
33,034,529
.
.
4,650,000
.
Capital
.
.
Dividend
28,898,069
with
and
...
.
.
^
11,711,035
,
.
.
$ 77,500,000
152,500,000
36,036,301
.
Total
266,036,301
$5,044,245,923
included as of June 25, 1947, except those of
prior to the outbreak pf. the War, but less reserves.
are
$266,372,976 of United States Government Obligations and $2,588,219 of other assets are
deposited
to secure
$218,225,03§ of Public and Trust Deposits and for other purposes required or permitted bylaw.
(member
federal deposit insurance
corporation)
my
not the road
The
to
United
sive, liberal
imperialism. '
States
and
is
progres¬
Chairman
Vice-Chairman
of the Board
Gordon S. Rentschler
of the Board
President
W. Randolph Burgess
Wm. Gage
Brady, Jr.
CITY BANK FARMERS TRUST COMPANY
1822
democratic; it has
twice poured out its blood and its
treasure for the ideal of individ¬
ual liberties and freedoms.
That
Head
is not the road to reaction.
ing capitalism the
That
seen.
is
world has
not
the
lace
has
course
those
moral
dispel the great
which
planted
Mr.
steadily
Wal¬
in
the
of his grand tours because
misconceptions damage the
standing of America in the
;.v.y..yV-:.;
Cash
and
(Direct
7/7
business
men
are
help the business men of
labor
great,
.dynamic
ipions—one of' the
strengths of
our
only—cents
omitted)
of June SO, 1947
great
kind
of capital¬
of their fel¬
.
proj
LIABILITIES
assets
Banks
from
....
or
$ 22,930,552
Deposits
of
and
and
in
Advances
.
and
.
.
T
f
*
.
Other Real Estate
Other Assets
,
T
.
»
•
!-»
.
.
.
•
.
.
.
3,797,828
769,540
.
,
,
.
•
~
•
.
3,183,534
'
114,500
"
Loan Deposit
Reserves
,
.
$1,369,414);
....
(Includes Reserve
of
.
$147,024,238
for
.
.
4,626,533
.
Dividend
$310,621)
Capital
.
.
$10,000,000
Surplus
.....
10,000,000
.
.
.
Undivided Profits
,
2,369,898
.
.
1,776,836
600,000
,
.....
.
....
.•
Securities
Federal Reserve Bank
Bank Premises
Total
1,077,805
.
Real Estate Loans
Stock
110,403,745
,
Other Federal
Municipal Securities
$114,147,633
(Includes United States War
Fully Guaranteed).
Agencies
Loans
American
Due
Obligations
State
Our
as
U. S. Government Obligations
world and hurt the cause of
peace
Europe.
1947
(in Dollars
and recovery.
eager to
—
to
economic collapse.
I have tried to
125th ANNIVERSARY
of Condition
ever
road
—
Office: 22 William Street, New York
Condensed Statement
The United States is
building
the greatest system of
participat¬
unemployed, we had a ism—are conscious
low workers' problems in
manpower
shortage,
and
em¬
Europe;
ployment
in
my
country
has our great agricultural organiza¬
'moved steadily forward since the tions feel kinship to the farmers
of the older world.
war to an all-time high.
We
[ ' I would be less than candid,
are
conscious
that
when
however, if I didn't concede that men are hungry and
cold, when
'so long as we have a.dynamic, life is a constant
struggle for bare
free, competitive capitalistic sys¬ existence, bread -takes precedence
tem, we are always going to have over freedom. We are conscious
some
ups
and downs.
Adjust¬ that the immediate job is- to
million
.
foreign policy based on part¬
nership and reciprocity. It wants
to help free and
independent na¬
tions
help themselves.
That
is
"
UWhat
omitted)
a
misconceptions
gave
.
Transit
in
Total
The United States has embarked
on
•
Bankers'
Banking Corporation
States is this:
ders
is
-
Loan Deposit $22,664,132)
,
International
of
Mr.
country
about
.
Federal Reserve Bank
in
Ownership
country.
Briefly, the truth about the United
facts
and
.
Liability
Acceptances
things. But I want you to know
them, because I want you to know
the
25,678,216
.......
Acceptances,
these
have forgotten to remind you that
his privilege to attack his own
Deposits
2,154,497,314
,
Municipal Securities
and
the
bust.
you
.
,
Loans, Discounts,
depres¬
I wonder if they knew how
problem of
$1,301,215,569
.
Other Federal
of
Other Securities
periodic
severe
-
(Includes United States War
Agencies
Customers' Liability
ourselves
.
Fully Guaranteed)
or
Real Estate Loans
and
.
U. S. Government Obligations
in
We have
dollars only—cents
LIABILITIES
Banks
be
had taken all these steps
seriously
am
from
Other Assets
we
avoid
and
me
Due
and
knew
sions.
I
Cash
prices of farm products.
I am wondering if
Europeans
to
of June 30, 1947
as
ASSETS
Bank Premises
States, then Mr. Wallace is right,
Let
'
•
will
legislation,
stabilized
-
take
to
people.
wage
have
we
paid, and
mind that
are
no
presently
(in
become
other actions,
prepared
oj Condition
Including Domestic and Foreign Branches
_
that
sure
not
booms and busts.
And by
Condensed Statement
recommend
positive actions to make
me!"
insist
we
choice
War
rattlesnake
a
motto: "Don't tread
a
For
w
Revolutionary
our
the
was
.
differ
and
nation
'
Mexico sometime
ago suspended sale of gold in
bars,"buT*c
tinued the minting of
50-peso coins which were sold in dollars at a
price
equivalent
to
$39.53
ann¬
ounce for
gold,-compared with a not available at the official ex¬
$35 price at the United States
changee rate. The "black market'
new
life.
council
which
fingers consistently
our re¬
have estab¬
we
national
a
In
of
co-operative action.
the
chapter in
-
to
Employment Act, and
did
that, the United
we
States
lished
certain
legislation
economy
in
slack
We have adopted what we
nomic
■
/If
call
We
^.June,.25' it.was announced that the Bank of Mexico, at the
solicitation of Camille
Gutt, Managing Director of the
International
Monetary Fund, of which Mexico is a
member, has suspended the
sale of gold
coins, a practice which afforded considerable
profit.
are
goal
with all our might. Even
that our economic sys¬
be¬
something from
depressions of the
economic
1930's.
the
Issue Not Capitalism
eco¬
never
We learned
our
It is
Total
.
,
.
8,250,072
28,250,072
~. $147,024,238
,
$4,600,240 of United States Government Obligations are deposited to secure the
United States War Loan Deposit and for other purposes required or permitted
by law.
(member federal deposit
Chairman
1
Bank of Mexico Ends Gold Sales
make
decisions—are
as
tems
goal.
nations
everlastingly seek with
building
if Mr.
know—
free
(19)
not
their
away
ingenuity, with all
our
tioned it: Industry in the United
States, management and labor and
doubt
ual.
.
dy¬
a
must
men¬
I
will
men
trade
and
ultimate
our
we
all
should
you
to meet the needs of the individ¬
-
natural in
are
this
nomically conscious
the
econ¬
economy.
agriculture—the
to
be shaped and adapted
can
They
free
a
to
men
sources,
the /fact
and
flexible,
faults.
forced
Free
normal in
are
But
in
capitalism.
Our. kind of capitalism is
and
.
believer
a
ments
that
so
freedom.
12)
page
capitalism; they benefit from cap¬
italism. In short, they are capital¬
be
bread
of the Board
Gordon S. Rentschler
insurance
corporation)
President
Lindsay Bradford
of
tile
20
THE COMMERCIAL & FINANCIAL CHRONICLE
(20)
The
Canadian Securities
By WILLIAM J. McKAY
Although the general outlook still gives little cause for optimism
are incipient indications that tend to minimize the gloom as far
the Canadian situation is concerned.
The Dominion export figures for May, which incidentally have
there
received
not
sation and the method of
electing
them;, the union's dues and fees;
tee
and fall months in strik¬
ing contrast to the winter months.
This seasonal boost is further ac¬
centuated
of
Coverage of the Act
tariffs
S.
U.
and
customs
proce¬
dures could be modified to
the
freeer
permit
Canadian
of
entry
The
has
Act
broad
a
coverage
in the field of labor relations: Em¬
ployers and employees whose larelations affect interstate and
Dor
foreign commerce, as well as labor
organizations affecting such com¬
merce, are subject to the terms of
the statute unless specifically ex¬
empted.
•
'
4
Employers specifically exempted
.
from terms of the law include the
Government of the United States,
in¬ goods, and Canada is one of the wholly-owned Government cor¬
traffic :!ew countries in the world that porations, Federal Reserve Banks,
attain has exportable surpluses. More¬ the States and their political sub¬
dimensions. Thus over, with the stimulus of freer divisions, non-profit hospitals, and
visible export of the tourist
which
this
year
should
unprecedented
there
is
still
recession
no
of any
Canadian war-
evidence
the
in
There
the
still
however,
remains,
unfavorable
factor
of imbal¬
to hard and
soft currency countries, although
the May figures show an upward
trend of exports to this country
and
the
total of approximately
between exports
ance
$80 millions makes favorable com¬
S.
Canadian
market
production would be increased. In
connection also
;his
stimulated economy.
U.
to
access
Canada pro¬
vides the ideal
proving ground for
such a policy as the Dominion has
unrivalled virgin resources which
only require a ready market to set
in
motion another great era of
Canadian economic development.
On the financial front also there
welcome
signs of improve¬
Rebuffed by the unyield¬
are
parison with the $72 millions of ment.
the same month last year.
The ing attitude of Ottawa concerning
solution of this problem is still of
he status of the Canadian dollar
paramount importance
both to and the statement issued by the
this country and to Canada. With International Monetary Fund re¬
the failure of the Geneva Confer¬ garding the world price of gold,
confidence
in existing
ence to arrive at any far-reaching
currency
conclusions concerning the lower¬ parities and notably that of the
Canadian dollar
is
commencing
ing of tariff barriers generally, it
i^ more than ever necessary for slowly to be restored.
There is
this country to demonstrate in the also now less inclination to view
;he date for the general convertic$se of its best customer, Canada,
that definite steps will be taken to
Dility of steriing as a fateful dead
relieve to some degree the urgent line as it^is now expected that
Ik S. dollar scarcity situation.
Once
more
U.
S.-Canadian
.
co¬
operation can serve as a world
example. The position in this in¬
stance, moreover, is by far the
simplest to correct. This country
this
development will cause
untoward
repercussions.
It
not be
that
a
can
over-emphasized, however,
new
far-reaching U. S.¬
commercial
Canadian
would
no
revive
to
serve
confidence
agreement
in the
universal
successful out¬
this country's efforts to
restore the world's economic wellof
come
Moreover, the
being.
CANADIAN BONDS
immediate
constructive results of such a step
would do much to encourage Eu¬
ropean efforts to bring about the
consummation
of
Marshall
the
Plan.I
GOVERNMENT
employers subject to terms of the
Railway Labor Act.
Employees specifically exempted
include individuals employed in
agriculture, in enterprises subject
to terms of the Railway Labor
Act, and in domestic service in
the
external
union-shop
tions—workers,
the
under
refrain
to
from
there
was
securities
months,
increased
demand
which
are
and
for
now
CANADIAN STOCKS
unfair labor practice for
ployer
coerce
their
join
or
A. E. AMES & CO.
right to join
union.
or
connection
with
Light Heat and
its
of
the
Power
Montreal
call
also
ground in the neighbor¬
8V2%. Canadian stocks
TWO WALL STREET
RECTOR 2-7231
N. Y.
NY-l-1045
K\
TAYLOR. DEALE
&
84
Wall
COMPANY
shop
union
as a prerequisite to
employment. However, under cer¬
tain
corY&itions it permits the
union
shop, which, under terms of
this statute, may require joining
of the union within 30 days after
worker obtains a job in a field
of
employment
covered
by
a
union-shop contract or 30 days
tive, whichever is the later date.
number of
use
of
limitations apply
union-shop contracts.
not authorized
are
in any state or territory in which
state or territorial law prohibits
employees
is
a
desire for
or more
required
a
of the
before
a
•'union-security" election may be
held, and in such
an
election (held
by secret ballot under supervi¬
sion of the NLRB) favorable vote
of
Government
Municipal
Corporate
The NLRB is to decide, in
whether a union's initia¬
tion fees
excessive
are
discrim¬
or
inatory.
Check-off of union dues is per¬
mitted only in case of written
thorization
from
whose dues
are
-Such
manner.
nation
date
collective
each
au¬
use
of the
contract
must
union-shop
obtaining such
only
such
the
applicable
agreement,
bargaining
and
welfare
subject
are
regulations
limiting
of
detailed
the
of
use
such trust funds to the sole bene¬
fit of employees, or
their families
dependents; limiting the pur¬
which payments may be
specification, in
the
against
union
as
not
assessed against the assets of
the
individual
members
the
of
union.
Obligations to Bargain
'
Collectively—Change from
Wagner Act
The
Act
National
unfair
Relations
Labor
it to
1935 declared
of
be
labor
ployer
practice for an
refuse to bargain
to
"ectively
funds
to
re¬
and its assets—and may
authorization is
the employee, at
an
em¬
col-
with
the duly author¬
ized representative of a majority
of the employees in an appropri¬
ate bargaining unit. The 1947 Act
continues this
obligation of the
employer,
except that under its
employer is not re¬
quired to (but may, if he chooses)
bargain collectively with super¬
visors.
'
terms
the
The Act of 1935 did not
unfair labor
n
the new
specify
practices for unions,
law, however, such a
written agree¬ specification is made and among
ment, of the detailed basis of pay¬ ■;hose unfair labor practices listed
a
ments out of such
funds; and re¬
body
a
for unions is
it
to
be
which declares
one
unfair labor
practice
representing employers and em¬ for a labor organization or its
ployees equally and such neutral agents to refuse to bargain colpersons as employer and employee
ectively with an employer, pro¬
representatives may agree upon.3 vided the organization is the cerTo
prevent
employers
tives,
the
union
law
of
representa¬
prohibits
an
em¬
to a representative
employees in;>n industry
ployer to
of
"shake-downs"
by
any
pay
affecting
commerce,v any money
other thing of value, and pro¬
or
hibits
its
receipt by such repre¬
sentative. Exceptions are allowed
to cover health and welfare
funds,
check-off of union
dues, and cer¬
tain other specified cases of legiti¬
mate payments.
Wilful violation
of the law in this regard subjects
the violator to a fine, upon con¬
viction, of not more than $10,000
or
imprisonment up to one year,
both.
or
Section 313 of the Federal Cor¬
provisions
to authorize
able
employee
year or the termi¬
without
the citizenship of the parties.
Any money judgment against a
union, however, may be enforce¬
an
of
jurisdiction,
or
to be paid in that
the
contract. The union
be
its
be
tributions
rations).
hibits
a
be
the
lawful
against
political
con¬
by unions (and corpo¬
The amended law pro¬
labor
organizations
from
making any contribution or ex¬
penditure in conection with any
bargaining
representative of the
employees. Furthermore, such a
contract may not be used to ef¬
fect a discharge of a worker who
election
to
in
connection with any primary elec¬
tion, political convention, or cau¬
exercise
union-shop
PHILADELPHIA, PA.—Thomas
Provincial
tory.
any case,
be had, after one year has
elapsed from date of the last
Newburger & Hano
B.
SECURITIES
stated for such fees but they may
not be excessive or discrimina¬
of a
majority of the employees in
bargaining unit (not merely of
those voting) is required in order
labor
an
ified bargaining representative of
bis employees.
The Collective Bargaining
Unit
Under
the, original NLRA the
determination of an appropriate
collective
workers
tion
of
unit
bargaining
assigned
was
the
as
of
func¬
a
The
NLRB.
statute
authorized the Board, in any given
case, to select
(from among the
employer unit, craft unit, plant
unit, or subdivision thereof) an
appropriate unit.
As
volves
the
under
amended
provisions,
statute
the
1947
now
limitations
additional
in¬
on
the selection, by the Board, of an
appropriate
unit.
not
collective bargaining
Professional employees may
be
in
grouped
a
bargaining
unit with non-professional work¬
ers
without consent of
a
majority
of the
professional workers. Nei¬
ther shall the Board disapprove a
craft unit as an appropriate bar¬
political office,
or
gaining unit on
disapproval
by
ruling, unless a
employees in a
unit vote against
Thomas Gravatf Joins
-
CANADIAN
is
rupt Practices Act is amended in
such manner as to tighten up the
national
may
Street, New York 5
WHitehall 3-1874
or
to refuse to
compels
any
meth¬
the ground of
previous Board
majority of, the
oils have now replaced the golds
proposed craft
as the speculative medium follow¬
separate repre¬
ing encouraging reports concern¬ has been denied union member- cus held to select candidates for sentation. Finally, individuals em¬
ing the new Leduc oil field in shin on the same terms and con¬ political office.
ployed to guard the property of
Alberta which is considered the
Provisions are included in the an employer or to protect the
ditions as other members, or who
most important Canadian oil de¬
has been denied membership or law to prevent Communists and safety of persons on an employ¬
velopment since the discovery of expelled from the union for rea¬ others who advocate change in the er's
premises may not be repre¬
the Turner Valley field in 1936.
Government by
unconstitutional sented in bargaining by. a, uhion
sons other than failure to pay the
regular fees and dues of the union. methods from serving as union which has members other tlian
Reconsideration of the contin¬ officers. Before a union may ac¬ guards.
"
'
; '■ ■ .'"jvV'
ued use of a union-shop contract quire
any
rights which it may
Collective Bargaining Duties
reactionary and golds espe¬
cially registered declines. Western
were
NEW YORK 5,
em¬
membership
A
maximum
quiring administration by
Evidence of
held
an
an
The Act forbids the closed
which
or
having
specific
poses for
a
contract,
force
unconstitutional
gard to the amount in controversy
No
and
in the exercise of
shop by 30%
hood
INCORPORATED
be
ynion: to restrain
a
workers
of
means
fees.
the placing in a separate trust
fund of any payments to be used
for providing annuities or pen¬
sions
for
employees;
requiring
to
or
Falsification in such affida¬
vits is punishable as a crime. »
The Act also includes provisions
district court of the United States
Govern¬
made out of such funds; requiring
it
by
ods.
ment regulation of their initiation
with
declares
statute
States
illegal
union-shop
hold
subject
labor
them.
in
which
are
or
this declared right of the workers,
the
teaches overthrow
or
to
by the union to its
a
union
by
New
Offerings,
however, were scarce in view of
the greatly diminished supply of
these issues as a result of large
scale redemptions and maturities
over the past few years.
Internals
remained steady and unchanged
and the free rate despite offerings
Unions
contracts
of
terms
joining
eligible,
for purchase
Savings banks.
submitted
Consistently
organization.
York
i,
are
condi¬
Act, have the right to join
Such contracts
those
CORPORATION
certain
under
in
Government of the United
organization is declared to
legally bound by the acts of
agents. Suits for violation of
any contract between an employer
and a union subject to the Act, or
Detween
unions
subject
to
its
terms,, may be brought in any
a
membership.
unions
validated
of
contracts—which
authorized
to the
recent
be
Health
Union Membership
cases
national
constituent
whichever is the earlier date.
dependent contractors.2
in ;
any
a
affiliate. Financial reports must
or
by a parent or spouse; those em¬
ployed as supervisors; and those
having the status of in¬
by
international union of which
given filing union is
by
pattern- of
MUNICIPAL
tion must be filed
or
one
Except
tne
copy
the end of
persons
believes
of
of the union's constitution intended to make unions
legally
by-laws; and complete re¬ liable for their acts. Section 301
ports of its finances.
Such infor-- provides that
any labor organiza¬
mation must be kept up to date tion
subject to the law may sue or
by annual reports. Also, informa¬ be sued as an entity.
Any such
a
revokable,
section of the market broke away
to some degree from the apathetic
PROVINCIAL
Secretary of Labor
employed
the home; those persons
after the contract becomes effec¬
During the week
ister with the
and
important
the
by
studies
further
make
to
labor relations in industry.
months, are in themselves highly encouraging.
$267,800,000—consti-^
*
postwar high level for this with a population eleven times
month and registers a sharp ad¬ that of Canada imported last year
vance
of
$77,000,000—over the from Canada goods to the value of
April figures. It is also a feature only $900 millions whereas Can¬
olthe Canadian course of foreign ada's total of imports from this
trade that commencing with May country amounted to $1,400 mil¬
Even in the absence of a
the export volume increases to a lions.
marked
Hyde
Park
Agreement
degree throughout the revised
a
summer
I^oard; and to the establishment
a Joint Congressional Commit¬
of
of
total
Before a union may acquire any
rights under the Act it must reg¬
and .provide information
pertain¬
ing to its officers, their compen¬
publicity which had been^ given to those for the
the
earlier unfavorable
The
tutes
Taft-Hartley Act
(Continued from first page)
important union
tactics as the
strike, the boycott, and featherbedding; to the reorganization of
the
National
Labor
Relations
"f
as
Thursday, July 3, 1947
Gravatt, for 15
the
Philadelphia
change,
with
has
become
Newburger
Walnut
years an
&
30%
of
officer
Stock
Hano,
of
Ex¬
1342
the
New York and
Responsibility
a
The
new
law includes a number
of
provisions which affect the
management and responsibility of
sentative.
as
registered
repre¬
under
terms of the
officers—and
officers
of
law,
any
international union of
affiliated with the
members of
or
Communist
Party
that
they are not believers in or ad¬
herents of any organization which
Self-employed contractors were held
by the Supreme Court, in one case, to
be subject to the NLRA as "employees."
National
amended
and
(b)
Act
Labor
(Title
is stated to be the mutual
obliga¬
tion of the employer and the rep¬
resentative
meet* at
of
his
employees
reasonable
times
to
and
confep in good faith with respect
3 Funds
2
The
Relations
I) outlines
rather carefully the duties of the
which it is a local or affiliate—
must file with the NLRB .affida¬ parties in carrying on the func¬
tions of collective bargaining. It
vits stating (a) that they are not
or
unions.
.Philadelphia Stock
Exchanges,
or more
Union Management and
associated
Street,; members
by • petition
of the employees.
election,
its
ment
the
prior
created
to
provisions
istration.
collective agree¬
not affected by
regulating their admin¬
1946
by
are
to wages, hours, and other terms
and conditions of
the
negotiation
employment, or
of
an
agreement
Volume 168
or,
question
any,
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
arising
under
such an agreement.The
obliga¬
tion to bargain,
however, does not
require either party to agree to
a
proposal
Gr
to make
an
obligation to place
a
conces-
sion.
There is
•
in
writing the terms
of
col¬
any
lective
agreement arrived at if
either party makes such a
request.
Neither
party
to
contract
bargaining
effect
shall
such
collective
a
which
terminate
contract
or
unless
desiring termination
the
is
in
modify
party
modifica¬
or
tion—
A-
-
(1)
Serves written notice upon
other party of the proposal
the
60
days
prior
termination
to
declares it
to
practice for
a
(1)
be
an
union
restrain
To
employee (in case of a union-shop
agreement) whose membership in
the labor organization has been
unfair labor
or
or
its agents-*-*
coerce
em¬
denied
exercise of speci¬
fied rights to participate in or to
refuse to participate in collective
bargaining activities;4
(2) To restrain or coerce an
ployees in the
terminated for
or
(5)
uniformly
dues;5
(4) To
employer in the selection of his
representatives for the purposes
of
collective
bargaining or the
an
cause
against
of the
adjustment of grievances;
(3) To discriminate against an
cause
fees
(7)
to
To
require
if
employee in violation
Except when a union-shop
as
authorized, requires union
ship.
a a.
■
-./aA
the
(8)
of the statute;
contract,
authorized
member¬
A""1 '.1
of
tion
tS
union
To
cause
such fees is the only
pay
for
reason
Unfair Labor Practice Procedure
The
denial
or
of
or
under
cause
a
such
an
or
employer to
to
exaction
termina¬
formed
membership.
services
not
or
to
agree
for
be
to
to
or
do
so,
not
assume
ant role under
de¬
pay
Also,
cases.
the courts
attempt
or
Relations
Labor
continues,
under the
amended NLRA, to be the primary
agency for administering unfair
labor practice
cases.
General
counsel to the board, however,- is
given an important and independ¬
ent status in the prosecution of
members,
operates
National
Board
union-shop contract; and,
anti-discrimination section
5 Refusal
excessive
discriminatory fees
liver,
4
col¬
a
injunctions of
more import¬
the amended stat¬
ute.
an
Considerable
change
has
per¬
(Continued on page 22)
performed.
of
the
contract or, if the contract
does not have an
expiration date,
60
days prior to the proposed date
of modification or termination.
(2)
Offers
meet
to
confer
and
With the other party for the
pur¬
pose of negotiating a new contract
or
contract
a
with
modification;
(3) Notifies,
the
proposed
within
30
after such written notice of
pute,
the
days
dis¬
Mediation
Federal
a
and
Conciliation Service and any state
territorial mediation services
C ENTRAL
or
in the
an
of
area
the
has
agreement
been
effected;
BANK AND TRUST
and
(4) Continues in force and ef¬
fect—without strike or lockout—
NEW
all terms of the
existing contract
period of 60 days after filing
notice or the expiration date of
for
IIANOVER
dispute unless
COMPANY
YORK
a
the
existing
contract,
whichever
is later.
&
TRUSTEES
It is an unfair labor
practice for
the employer to lock out. his em¬
Statement
of Condition, June 30, 1947
ployees within the 60-day period
and
for
within
union
a
this
call
to
period.
who
participate in
this
period
lose
strike
a
george w. davison
Employees
Honorary Chairman
strike during
a
their
status
ASSETS
louis s. cates
as
President, Phelps Bodge Corporation
employees of the employer in the
dispute until such time as they
colby m. chester
■
Honorary Chairman
are
re-employed by him. v
The original Wagner Act
speci¬
fied
list
a
tices
of
which
unfair
labor
General Foods
were
jarvis cromwell
President
Interference with, restraint,
coercion of employees with re¬
to
collective
rights;
•
„
labor
organization;
(3)
or
Chairman
or
a
discour¬
or
membership in a labor
organization by discrimination in
regard to hire or tenure of em¬
condition of
any
ployment;^- j '
(4)
Attorneyf.f'.p A
em¬
-V
A
■
Discrimination
against
in
an
The
-
amended
Act
v
.
#
-
Mortgages
Banking Houses
Carpet Co.
robert l. gerry 1
V
Liability
.
/
.
4
•
a"V
^
^
sue
Kansas {Oklahoma
violations
bargaining
of
col¬
contracts
and
certain concerted
activities; and to
file charges of unfair labor prac¬
tices against unions.
Unfair Labor Practices of Unions
The
amended
NLRA
differs
in
important way frpm the
original law by specifying a num¬
ber
of
prohibited unfair labor
practices for labor organizations.
a
-very
The original statute
listed
unfair
•
^3>066,808.56^
*1^
\
•
L :
r
<
.A
*.A
'
•
«
A
.
•
j - *
7'
'*
•
as
are
designated
Tbe law
unfair labor, practices.
ji-,568,086,844.68
.
*«.'
•
LIABILITIES '
"
v
•
:
and Gulf Railway Co.
Capital
.
.
$21,000,000.00
Surplus
.......
80,000,000.00
.
.
.
.
Chairman of the
Corn Products
Board
1
Refining Co.
Undivided Profits
.
.
a.
john k. oeyphant, jr.
24,155,236.79^ I25>iS5>236:79
Vice President
benjamin o'shea
Reserve for Taxes,
Chairman Executive Committee
Union Carbide and Carbon
Dividend
eustis paine
Chairman
?
of the Board, New York
I,O5O,O0O.OO '
Payable July 1, 1947
an
Pennsylvania Co., Incorporated
Acceptances
auguste g. pratt
President
The Babcock and Wilcox
8,182,761.76
Interest, etc.
Corporation
a
Company
In Portfolio
$ 5,389,225.40.
•
3,441,355.04'
6"
'
?■
'.
'
■•A
''
.
A
1,947,870.36
gwilym a. price
President
Deposits
Westinghouse Electric Corporation
lucius f. robinson, jr.
-
!,43!,75°,975.77
.
-.1
$1,568,086,844.68
Attorney
Robinson, Robinson and Cole AAA
john p. stevens, jr.
President, J. P. Stevens id Co., Inc.
henry p. turnbull
There
are
pledged to secure public monies and to qualify for fiduciary powers'
Montclair, New Jersey
A:.'v.':
william woodward
New York, N. Y.
U. S. Government Securities
'^A'A
Under the amended law several
practices of unions
1,946,426.07
..-a
labor practices only for employers.
•
*
...
President, Chrysler Corporation
em¬
unions for damages
5>253,912-61
*
"
k. t. keller
or a
tation; to
•
^)
A-1
jr.
george m. moffett
lective
•
"
President
Under terms of the amended stat¬
resulting from
407,57°,502.53
12,224,009.00
on
.
promise of benefit. Also, em¬
ployers are stated to have no ob¬
ligation to recognize,. or, bargain
collectively
with,
supervisors'
unions.'In addition, employers are
given the right to petition for in¬
vestigations of employee represen¬
.
-.
.
c.j a red 1ngersoll
Chairman of the Board
ployers on labor matters is given
specific statutorial protection ex¬
cept when such expression con¬
tains a threat of reprisal or force,
•
a'v
' \
r
President, The Gerry Estates, Inc.
unfair labor practices for
employers. The law, cn the other
hand, differs in several ways from
the Wagner Act with resoect to
employer
liabilities.
rights and
ute, freedom of expression of
.a
Acceptances Outstanding .'
Vice President and Treasurer
continues
these
.
• •
\,
;
"Interest Accrued;Customers'
-A
william s. gray,
gaining unit.
.
v
•;
,
Alexander Smith and Sons
bar¬
approved
a.':.
william f. c. ewtng
,
employees
14,648,762.58
*
a. eldridge
'A Vice President
-
tively with representatives of his
688,952,210.80
.
48,030,972.67
«'•;*•
-
Loans and Bills Purchased
Real Estate
..f ,
• A
Dunnington, Bartholow,and Miller
William
an
employee because of testimony he
has given under the Act; .and,
y
V
'(5) Refusal to bargain collec¬
,
-
.
walter g. dunnington
,,
or
A
Eerlin and Jones Company, lnc.\
agement of
ployment
,
„
g
thomas dickson
President
Encouragement
.
.
Municipal Securitiesj..
Other Securities'
'
Attorney
•
-
.
oj the Board
johnston de l-orest
interference
financial, support of
,
A Continental Insurance Company
,
Domination
State and
'
r
bernard m. culver
bargaining
A
,
(2)
with,
.
Wilhim Iselin id Company, Inc.'
.(1)
spect
U. S. Government Securities
y -
President, The Clark Thread Co.
prohibited to
jemployers
subject to the law.
These practices included:
or
Banks;'•$ ,386,393,239.86
Corporation
john b. clark
prac¬
Cash and Due from
MEMBER
PEDEKA^ DEPOSIT INSURANCE
21
an
cotts;
attempt
or.
employer to discriminate
an
bargain
employer;
-•••,.■,
(6) To engage in, or to induce
or
.encourage the
employees of
any< employer to engage in, cer¬
tain prohibited strikes and
boy¬
reasons
required
pay
and
refuse .to
lectively with
other than refusal of the worker
to
To
(21)
CORPORATION
$19,426,814.54
been
22
THE
(22)
COMMERCIAL & FINANCIAL CHRONICLE
eral
additional functions on ths
Board in addition to consideration
The Taft-Hartley Act
made in
and
the Board's
nel.
has
are
abolished
its
final
decisions
independent
certain
board
members.
effect
that
the
the
represent
judgment
In
of
effort
an
initiation
to
separation
of
prosecuting
and
judicial
func¬
tions, the board's General Coun¬
sel—to be appointed by the Presi¬
dent—is assigned final authority Courts, in reviewing decisions of
for investigation of charges, issu¬ the Board, are to treat the Board's
ance of
complaints, and prosecu¬ findings of fact as conclusive if
tion of unfair labor practice cases
supported by substantial evidence
greater
a
before the
strike
reasonableness
the
fees
the
on
board.
recorcl
considered
as
whole rather than, as before,
supported by evidence."
In an attempt to lighten its case
load, the board is authorized to
cede
jurisdiction over cases to
The
amended
law
introduces
important restrictions
some
of
use
labor
new
intended
to
is
case
needed
to
prevent
fair
the
on
strikes, lockouts and boy¬
cotts.
Participation in strikes against
the
Government, or any of its
agencies or wholly-owned corpo¬
a
"if
entire
an
ir¬
industry
substantial
or
(affecting interstate
foreign commerce) if,-in the
judgment of a court, the strike or
lockout
would
purposes
are
IRVING
imperil
safety.
or
are
made
unlawful
if
the
na¬
making public, by the
President, of this second report of
his board of
or
to
cease
dealing
in
the taking, by the NLRB, of
secret ballot, within a
15-day
a
products
(c)
1947.
to
son
cease
(d)
or
.
U. S. Government Securities
.
.
.
.
a period
days (following the 15-day
period);
(9) motion
by the
Attorney
General—upon receipt of this bal¬
of five
lot of
First
Mortgages
on
278,183,071.12
...»
Real Estate
*
(10)
..
.
5,781,196.45
.
the' representative
as
Other Assets
employees unless the union
class
craft,
of work
trade, craft,
or
rather than
an¬
labor
organization, trade,
class of work—unless an
or
employer is failing to abide by
Liability
Acceptances Outstanding
a
jurisdictional award of NLRB.
3,912,655.96
.
Strikes
3,193,447.28
.......
and
purposes
labor
$1,159,522,228.99
ed
boycotts
mentioned
for
are
the
unfair
practices, under the amend¬
N'LRA, and are also declared
unlawful under
a
new section of
The NLRB may seel^in-
the law.
junctions
LIABILITIES
Deposits
t
Acceptances
.
;
0
■
Less Amount in
Portfolio
.
.
.
f
.
,
4
,
>"
a
4,440,630.40
Expenses
payable July 1, 1947
Other Liabilities
.
•
•
•
•
n
2,797,663.93
"750,000.00
1
•
•.-*
1,868,301.40
•
*
i
$50,000,000.00,
Undivided Profits
113,978,420.71
$1,159,522,228.99
United States Government Securities
cost.
of
Of these,
$24,507,293.20
are
public monies and for other
Member Federal
are
stated
pledged
purposes
at
amortized
deposits
required by law
to secure
Deposit Insurance Corporation
a
bargaining
Furthermore, strikes
union in violation of
clause in a
of
a
no-strike
bargaining
contract
apparently subject the union
•injunction procedure as well
damage suits.
A
for
63,978,420.71"
any
bring suit in
damages and
a
•
Capital Stock
Surplus and
and
Strikes, also, are illegal during
60-day "cooling off" period prior
contract.
3,028,814.35
•
may
to the termination of
; *
Reserve for Taxes and Other
Dividend
them
the courts to recover
costs of the suit.
$1,035,687,212.55
$7,469,444.75
..
against
damaged party
.
upon
discharge of the -injunction—to¬
gether with any recommendations
The
Act
Congress.
;
to
the
removes
Concilia¬
tion Service from the Department
of Labor and makes of it an inde¬
Mediation
tion 'Service.
The
and
Concilia¬
,;/:•;
Service
settlement
of
threatened
spiospof jo sa^u^s gupstxa jo
which—when affecting "all or a
substantial
part
of'an industry—
imperil the national health or
safety.
In such cases the follow¬
ing procedure is authorized:
in
Service
may
any
is
con¬
-
•
.
"A
The general point of view from
the 1947 Act is written is
which
legal
establishing
responsibility
employers in
labor-management re¬
standards
of
for unions as well as
the field of
lations.
This point of view seems
fully justified by
sponsible
actions
various
irre¬
of
displayed by employers
Wagner Act. No doubt or¬
ganized labor will bring numerous
test cases in the courts, as wasdone by employers after enact¬
ment of the Wagner Act.
to the
The
is
a
labor relations statute
new
complex lav/:
Its full
and effects, therefore,
very
meaning
will not be apparent until its pro¬
been tested by their
and
use
trative
interpreted in adminis¬
rulings and decisions of
the courts.
The
policy of prohibiting the
shop and permitting the
shop only under certain
safeguards against its abuse is, in
union
the
writer's
judgment, a justifia¬
the Wagner Act
allowing any certified
employ
closed - shop
ble change from
policy of
union
to
agreements
without
restriction.
shop constitutes a real
threat to workers, employers, em¬
ployment, and general economic
welfare.
Provisions of law
unions to be
cause
ble
needed to
are
more
responsi¬
institutions—with
directed, however, to
attempting to mediate dis¬
putes which only affect commerce
in a minor way, if State or other
respect to
management and, also,
in their dealings with others. Pro¬
visions of this statute relative to
conciliation services
suability of unions, the filing of
information and financial
reports,
are
available
the
to
.
The
Act
agement
creates
National
Panel—to
advisory
an
Labor-Man¬
advise,
upon
request of the Director of the Me¬
diation
and
Conciliation
.
avoidance
on
of
troversies and the
Service,
industrial
manner
con¬
of ad¬
ministering
mediation,
particu¬
larly with reference to disputes
affecting the general welfare of
the country.
The Panel is to
sist
of
the
President
years.
12
members
for
con¬
appointed by
terms
of
three
Half of the members shall
be
outstanding in the :field of
management and half
shall be
outstanding in the field of labor.
The -Act provides for
further
study of the problems of labormanagement relations by a joint
committee of the Congress, of 14
members, 7 from the Senate Com¬
mittee
on
Labor and Public Wel¬
fare and 7 from the House
mtitee
on
Com-
Education and Labor.
The Joint Committee is. to make
a
report
on
the results of its
in¬
vestigations,
with
any
recom¬
mendations, by March 15, 1943,
and a-final report by Janiiary 2,
1949.
..//" .//-.•/;,
The Joint Committee is author¬
ized to make
a
thorough study of
the entire field of labor-manage¬
ment relations, but is directed to
(1) appointment, by the Presi¬ include in its studies—
dent, of a board of inquiry to in¬
(1/means of securing perma¬
vestigate the dispute and to re-* nent friendly cooperation and sta¬
port to him the facts and the posi¬ bility in labor relations; •
tions taken by the parties in
■
•
The closed
proffer its
labor
dispute
which, in its judgment, may cause
a substantial
interruption of inter¬
state or foreign commerce.
The
services
as
special procedure is outlined
the
•=■
closed
panel—the
or
14,898,800.00
....
comprehensive report to
a
Congress,.by the President,
avoid
,,
labor organization
Customers'
/for
relation
finally,. ''//:■./ r//// visions have
(f) any
employer
to
assign
work to employees in a
particular
300,716,608.15
,
.
dis¬
lation of any obligation under the
law.
^
other
Headquarters Building
their
and
that there is need for
dispute,
earlier—for
tion if another has been certified
under the law;
O'C
3,088,100.00
<
is
charge of the injunction, and its
discharge
by
the
court;
and,
„
2,123,579.00
.
settlement of the
whichever
parties.
Failure of either
has been certified
by the NLRB;
party to a dispute to agree to any
(e) any employer to recognize procedure suggested by the Serv¬
or bargain with a labor
organiza¬ ice is not„to be considered a vio¬
547,624,771.03
.
.
Stock in Federal Reserve Bank
Loans and Discounts
$
other per¬
or
other employer to rec¬
bargain with a labor or¬
ganization
of his
•
0 r
doing business with
'
e
or
any
any
ognize
ASSETS
per¬
of
employer
any
any person;
.
funds
position
sults of the ballot within
Federal
processor,
producer,
manufacturer;
.
welfare
powerful
period, of the employees to deter¬
unions and their leaders.
mine whether they wish to
accept
The strong opposition of union
the last offer of the
employer;
leaders to the law is similar, in
(8) certification, by the NLRB.
cause and significance, to the op¬
to the Attorney General of the re¬
.
using, • handling,
the
other
.
They
object of the
employer organization; /
(b) any employer or other
NEW YORK
Cash and Due from Banks
inquiry;
(7)
pendent agency, under administra¬
require—
(a) any employer' or self-em¬ tion of a director appointed by the
ployed person to join any labor or President, to be known as the
son
of Condition, June
the
for action of the
illegal.
an
action is to force
TRUST COMPANY
.
of
Conclusions
(6)
Strikes and boycotts for certain
Other Securities
'efforts
settlement, the positions of the
parties, and a statement of the last
offer
by the employer or em¬
ployers;
portion of it
or
sev-
tional health
Statement
of
at
statute
"tighten
'
up" the board's procedure in un¬ reparable injury.
The amended law imposes
practice cases and court reare
continuation
.
The
■
law
lockout;
or
(4)
internal
the
levied
rations, is prohibited.
Any em¬
places a
ployee participating in such a
State
and
Territorial
agencies, six-month limit on the filing, by
strike shall (a) be discharged im¬
subject to two conditions.
(1) a person, of a charge that an un¬
mediately, (b) forfeit his civil
Jurisdiction can be ceded in cases fair labor
practice has been com¬
service status, and (c) be ineligi¬
arising in mining, manufacturing, mitted.
That is, filing of such a
ble
for
re-employment by the
communication, and transporta¬ charge must be effected within six
tion only when the employer's op¬ months after occurrence of the al¬ Government or its agencies or cor¬
porations for a period of three
erations are predominantly local
leged unfair labor practice (ex¬
in character.
////r;
(2) Also, jurisdic¬ cept in case of- a person having years.
tion may be ceded only if appli¬ been
"National
emergency"
strikes
prevented bfy service in the
cable provisions of State or Ter¬ armed
and lockouts are made subject to
forces from adhering
to
ritorial law and rules for decid¬ such a time
court injunction.
Federal district
limit). ■'//.; .v:;/.-v"/.;./;
ing cases are consistent with pro¬
Injunction.procedure is author¬ courts are authorized to issue in¬
cedure of the Federal law on this ized
in
specified situations in¬ junctions for a maximum of 80
subject.
volving unfair labor practice cases days against threatened or exist¬
Some provisions of the amend¬ in which speedy handling of the ing strikes or lockouts involving
ed
petition, by the President,
injunction against the
holding or continuation of the
court
a
organization
unions;
(4) the labor relations policies
and practices of employers and
employer associations;
(5) the desirability of employee
(3)
and administration of
(3)
union
of
con¬
by, a union the disputants during the period to the social security program; with a union-shop contract, hear¬ of
trict
courts
in
civil
any
injunction granted, and
procedure.
(6) the best methods and pro¬
Also, the Board is authorized to ing and deciding cases of those with assistance of the Federal cedure lor carrying out collective
issue cease and desist orders or jurisdictional disputes defined as Mediation and Conciliation. Serv¬ bargaining processes, with special
take affirmative action to effectu¬ unfair labor practices in the stat¬ ice, |o arrive at a
study of the effects of regional^or
settlement;
ate the policies of the law only if ute, and conducting elections to
(5) a - second report,
by the industry-wide bargaining; and,
determine Whether employees in¬ board of
the Board shall be of the opinion
inquiry—if the contro¬
(7) the administration and op¬
volved in a national
emergency versy is not settled 60 days after eration of existing Federal laws
—upon the preponderance of the
dispute wish to accept the terms issuance of an
testimony—that an unfair labor
injunction—giving relating to labor relations.
'
''
of an employer's last offer.
to the President the efforts made
practice has
been
committed.
division
and
shop elections, determin¬
ing
ticable, to follow the rules of evi¬
dence employed by Federal dis¬
for
of union
law
added to its person¬
other changes made to assure
also, the making public of its
tents;
,
unfair
practice charges mad6
against unions.
Included in these
new functions are the
conducting
directs the Board, so far as prac¬
Two
The Board's review
been
The
additional
procedure.
members
(Continued from page 21)
organization view, of its decisions.
of
Thursday, July 3, 1947
(2)
means by which the worker
achieve greater productivity
troversy;
(2) filing of the report by the
President, with the Federal Medi¬
anteed
ation and Conciliation Service
and,
sharing plans);
may
and
higher
(including guar¬
wage and profit-
wages
annual
their
own
of
use
the
check-off, and certain
other appropriate sections
greater
encourage
These provisions
should
responsibility.
are
no
more
ex¬
acting—if as
exacting—as
like
provisions of several State laws.
;
The
specified
bans
on
the
use
of strikes and
boycotts for certain
purposes in private employment is
an attempt to limit the
"unreason¬
able restraint" activities of unions
and their jurisdictional controver¬
sies.
The general objective of the
provisions, in the writer's judg¬
ment, is justifiable.
f
Failure of Congress to adopt a
clear and definite
policy on the
question of regional or industry¬
wide
bargaining
writer's
results, in the
a significant
opinion,
in
shortcoming of the
new
labor law.
Development of regional and in¬
dustry-wide collective bargaining
adds
greatly to
competition
and
impairment
enhances
of
the
dangers of strikes in basic indus¬
tries.
that
It should be
the
statute
Committee
noted, however,
directs the
Joint
of
Congress to make
further studies of this auestion.
The procedure outlined for deal¬
ing with national emergency stop¬
pages—investigation, reports, lim¬
ited-period injunctions, and me¬
diation—may tend to reduce'work
stoppages which threaten national
health
and safety.
The writer is
doubtful, however, that the out¬
lined
procedure will prove ade¬
quate to (deal 'with this problem
in a very effective manner. •
Establishment of the Joint Com¬
mittee of Congress to make thor¬
ough
studies
problems
in
of
the
certain
field
of
major
labor-
management relations should pro¬
vide
a
comprehensive body
for
guiding the
Congress in making any needed
changes in labor relations law.
of
very
information
Volume 166
THE COMMERCIAL' & FINANCIAL'
Number 4608
Our
Reporter
*Of
continue to make
restricted bonds
of
the
shares
lows for the
new
year on light Volume. . . . Certificates, too, haw an easier
The market has been tossed around by a combination of
of
tone....
factors ox
which "Open Mouth Operations" were again not the least impor¬
tant
The authorities are supplying the market with securities in
somewhat smaller doses, because of the decreased demand. ... None¬
theless, the powers that be are ready to hit bids, whether large or
small, whenever it seems as though there would be improvement in
prices.
There is no doubt that the money managers are intent
upon keeping quotations within specific trading limits,
with the
offered to
lower limits of this range,
an
.
.
issue
3
p.m.
common
on
.
.
the
tional
preferred stocjk is con¬
1957,
at
conversion
price of
per share of common stock,
is redeemable at $106 per
and
share
and
on
before June
or
30, 1948,
thereafter
at prices scaling
point each year to
$102 per share on July 1, 1955.
down one-half
stockholders of
investments
in
What interests the
The company intends to makq
Proceeds
from, the
financing application to list the cumulative
applied to the redemption
"preferred stock, series A, and the
of 1,481,774 outstanding shares of
5% cumulative preference stock, common stock on the New York
par value $10, and to provide ad¬ Stock Exchange.
will be
The unsub¬
1
underwriting group headed by
markets
money
is the extent to which
now
push prices down before there will be relief
from the pressure of Federal selling.
.
.
There are about as many
authorities
will
.
©pinions on this part of the picture as there are followers of the
market.
The guesses run all the way from the recent lows to
100 lk for the longest restricted issue. . . .
.
.
.
The idea
feeling that the authorities want quotations to
or
another element of uncertainty into
recede farther has injected
the situation.
As
...
THE
selling
result it does not take as much
a
down as it did a
few weeks ago.
Investors in some instances haye been pull¬
ing bids before they have bought all of the securities they are
by the money managers to move prices
now
.
:
looking for.
CHASE
.
.
NATIONAL
V
...
purchases have been made by quite a few institutions
but this no longer seems to be the scheme of things. ... Despite
the need for income, more investors appear to be moving to the
Scale
BANK
CITY OF NEW YORK
OF THE
sidelines, until there is a clearer conception of where the authorities
are going to take prices on the down side. ...
INVESTORS IDLE
STATEMENT OF CONDITION,
beyond which the powers that be can¬
There is no doubt a level
not afford to have prices go,
have this
happen.
On the other hand, investors are not interested
buying securities and, almost immediately after the purchase,
quotations move down.
Quick losses in government com¬
mitments are not conducive to even support buying, especially if
there is the fear that there will be greater depreciation in the very
near future.
Because of this growing uncertainty more investors
.
.
.
.
.
.
RESOURCES
.
Cash and Due from Banks
•••«*»
11,113,745,115.62
.
putting out of the market and are quite likely to stay out of it
until there are signs that a bottom has been reached.
are
.
.
.
•
•
•
2,168,562,691.23
«
/
«"
•
/ 90,286,043.16
•
•
167,465,578.51
loans, Discounts and Bankers' Acceptances
1,203,007,457.14
U. S. Government
State and
believed
favorable to the money markets should have a good effectrupon
government obligations in the long run, particularly after trading
ranges have been established.
Nevertheless, there appear to be
rumblings over the way in which the liquidation of securities • by
keeping of prices within desired limits that
Obligations.
.
MONEY MANAGERS ACTIVEThe
JUNE 30, 1947
because there is too much at stake to
In
have
Municipal Securities
.
Other Securities
are
•
...
the authorities is being carried out.
is believed
It
tween
out
the
of
some
recently.
-
in
money
..
some
the
price
Accrued Interest Receivable
Customers'
movements
many
and
that
instances when buyers have
.
and bids
are
.
Acceptance Liability
Stock of Federal Reserve Bank
in the market and quotations have gone up a few'
thirty-seconds, because of this demand.
After the securities
seems
.
.
.
.
.
....
*
.
.
.
.*....
.
.
.
"
times like these when there
The
.
.
is
so
much
.
LIABILITIES
Capital Funds:
nervousness
Because
place
opinion
powers
effectiveness
that they will
.
Dividend
:
.
'■
'
:
"
.
16,448,721.84
Reserve for Taxes, Interest, etc.
.
12,291,312.47
Contingencies
.
.
.
.
Refunding of maturities in notes and bonds due this year and
next still goes on, with the 2s due 1952/54 and the 2lks due 1956/59
the issues that are being taken on in place of the near-term secur¬
.
Scale buying by savings banks appears to have been given
for the time being.
Insurance companies are pretty much on
the sidelines although there is some liquidation of the intermediateterm eligibles.
up
.
.
.
Deposits
.
.
•
>
.....
•
.
•
4,445,081,221.35
.
Acceptances Outstanding
.
C:,-'V: V"'-
-Vv
.
.
Reserve for
REFUNDING CONTINUES
.
2,960,000.00
Payable August 1, 1947.
.
.
ities.
317,316,584.36
of
change in the bill rate within the next few days.
a
'
,
.
present policies, many are of
carried on for some time to come,
be
.
look for
52,316,584.36
$
that be have been
without important changes.
"Open Mouth Operations," it seems,
will continue to be a vital part of this program.
Others, how¬
ever,
154,000,000.00
.
...
Undivided Profits
$111,000,000.00
.
...
.
the
.
.
can
prices well in hand without giving
lip service to these proposed developments.
of
Surplus.
in the market.
successful in keeping
than
Capital Stock.
.
against these events taking
both sides.
Nonetheless, it is evident that the
very
2,718,654.85
>4,814,277,130.25
~
arguments for and
be quite convincing on
more
31,848,639.55
as
.
.
7,950,000.00
•
The money markets are still being given
liberal potions of
"Open Mouth Operations" especially those that are concerned with
impending or not too distant changes in short-term rates as well
as a new offering of greatly restricted securities.
These rumors
have their effects on prices of Treasury obligations, particularly at
the
••
7,128,284.71
.
an
RUMORS ABOUND
.
.
Other Assets
.
...
.
.
.
Banking Houses
still around, the powers that
though quotations could have been kept pretty much
eyen keel and the investor would have received a better price
for the issues bought if the demand had been supplied in the first
place by the money managers.
on
.
-.
.
be get active, hit these bids and down go prices.
It
11,238,282.40
Mortgages
dealers could iron
have been witnessed
investors
appeared
have been purchased
10,326,383.08
.....
.
quarters that closer cooperation be¬
managers,
There have been
.
.
.
Less Amount in
Liability
and
as
$ 10,936,699.47
7,744,616.98
3,192,082.49
Portfolio
Endorser on Acceptances
Foreign Bills".
•
.
.
•
•
•
;
«
1,361,007.39
.
Other Liabilities I
■;.
.
11,073,665.86
••••«•'•
...
$4,814,277,130.25
INSIDE THE MARKET
The New York State Insurance fund
Victory Loan 2M>s.
.
.
.
New York State bonds.
Part
.
»
.
was
of these funds
a
sizable buyer of the
from the sale of
came
A large block of the 2%s due 1959/62
sold recently by the State of Oklahoma, with no
apparent ill
effects upon the market
The World Bank bonds will be the next
were
important financing to
ception indicated.
come
into the market with
a
good
very
.
some
own
,
.
of the Vic 2%s because of the need for funds in
business.
required or permitted by law.
Member Federal Deposit Insurance Corporation
Out-of-town commercial banks have been shifting from the
2K>s due 1956/58 into the 2Us due 1956/59 and the ZHs due
Sept. 15, 1967/72.
Industrial concerns are reported to be let¬
ting out
and other securities carried at $312,669,070.00 are pledged to
public and trust deposits and for other purposes as
re¬
...
their
United States Government
secure
■.
r
:
Jefferson
Chemical Company, Inc., which it
jointly with the Texas Com¬
pany,
and in Southern Alkali
Corporation, owned jointly with
Pittsburgh Plate Glass Company.,
owns
HOW FAR DOWN?
the
part
stock
new
$42.50
scribed shares to be purchased by
.
ditional funds to be used in
unless previously
re¬
into shares of common
1,
.
the unknown quantity.
been
deemed,
of
10, 1947, expired at
June 25.
have
for
The
American
June
Co.,
vertible at any time prior to July
scription privilege which had been
record
&
carrying out the company's
plan for expansion of facilities
for the production of pharmaceu¬
ticals, dyestuffs, pigments, plastics
and other chemicals; for addi¬
warrants issued to the company's
common
stockholders.
The sub¬
.
.
total
Weld
sold.
391,076
Cyanamid,
3V2% convertible preferred stock,
373,773 shares were subscribed for
upon the exercise of subscription
By JOHN T, CHIPPENDALE, JR.
Prices
White,
American Cyanamid Go.
Preferred Slock Sold
Governments
on
CHRONICLE
4
THE COMMERCIAL & FINANCIAL CHRONICLE
(24)
most
as
A Plan for World Bank
houses
be
determined, definite limits of
highs and lows could be set.
It
could be arranged so
of the spe¬
cific loans would be too small for
mains under the constant surveil¬
the
World
if
all
Exchanges
could
be
used
stant
liquidity
world
the
over
maintain
to
con¬
Bank
World
of
bonds.
Specific Purpose Loans
The making of
loans
endeavor
velop
Bank
specific purpose
to
are
we
bother
to
enter
with,
and
upon
rehabilitate
to
and
de¬
resources of nations a
number of specific loans,
representing
individual projects
could
be combined-into
large
one
loan.
The major loan would thus
be much stronger since any major
the
benefit
of
loans is
diversification
Engineering and economic studies
project to be used to guarantee
the liquidation of the interest and
principal of the loan.
This
has
method
been
tically
making loans
only domes¬
large scale, but has
used
a
on
of
also
been
The
instalment
not
used
internationally.
for
institutions
them
years
to
the
consumer—using
)en
made
on
each
and
submitted
World
then
Bank
detail
which
to
the
would
study the projects from the
engineering
of
in
staff,
and economic
before
view
eration.
The
financial
success
points,
consid¬
of each sep¬
large number of proj¬
ects in serial order, so that their
a
be
could
major loan. Each
represented by
receivables which
collateral
The receivables
be used
would
the
for
major loan.
coming due seri¬
ally in different periods could then
be classified by the Bank as shortterm and long-term paper.
The
former
collateral for the Bank's
as
"would
bonds
own
command
greater marketability
rate of
interest since
at
a
lower,
a
large
many
financial institutions and individ¬
ual investors
interested mainly
are
The
investments.
short-,term
The World Bank should be able
to
improve directly economic
ditions
in
the
debtor
that it would
con¬
country so
possible to
become
tablishment
of a large
separate projects could
number of
economically unsound. It would
be unlikely for the interest
and principal of the major loan to
be
in jeopardy because
of the
The Export-Import Bank
making specific project
pay
the
the
of
problem
World
Bank
to have been
seems
present in the minds of the organ¬
izers.
The solution was,
conceived
in
the
mosphere
of
currency
however,
traditional
only
cause
toric
can
the repetition of the his¬
difficulties
of
international
loans and international exchange.
This
will
be
particularly true
henceforth because
bank
et
at¬
exchange
and stabilization methods and
Chemical,
the
...
.
principles of
world
may
a large part of
not find it prac¬
tical to operate on any basis other
than direct barter. In fact, the his¬
default
a
important
ability to pay.
tant
for
that
economic
the
a
sometimes
are
less
than
It is
nation
problems
breakdown
of
na¬
ques¬
occurs
the
impor¬
more
to
are
debtor's
solve
which
its
the
cause
currency
which in turn make it impossible
to get sufficient
the
exchange to meet
and principal of its
services
foreign debt.
In private
business
stress is laid upon the abil¬
more
ity of
financial
obligations than
principles
which
moral
make him desire to do
his
on
would
It
so.
helps
bank
a
very little if a business¬
who cannot possibly meet his
man
debt is
a
more
to
make
pillar of the church
or
a
honesty and integrity. It
important for the bank
before making the
sure,
loan,
that the business in ques¬
tion is sound and will be
produc¬
tive enough to enable its owners
to
meet their obligations.
It is
strange that these sound business
methods
have
not
been
cqrried
into the field of international
over
banking
The
the
on
large scale.
any
price
that industryin ad¬
might be
tendered by debtor nations.
In¬
dustry in any nation would have
ample time to anticipate the arrival
of these goods and plan accord¬
ingly. There need not be any sur¬
prises of sudden supplies of com¬
modities or any dumping in any
market if this is properly handled.
By creating a sufficient number of
futures contracts and sufficiently
could be advised two years
which
vance
is
Broadway, New York
CONDENSED STATEMENT OF CONDITION
At the close
of business, June 30, 1947*
Cash and Due from Banks
Obligations
Bankers' Acceptances and Call Loans.
State and Municipal Bonds
$325,011,456.43
Other Bonds and Investments
Loans and Discounts
463,613,550.92
84,155,715.98
.
.
66,606,317.86
.
56,963,545.51
_
284,925,139.85
209,793.50
.
"Banking Houses
*Other Real Estate
futures
them
It
in
on
A
tional trade done without gold in¬
much more, it will tend
needed.
be
$25,000,000.00
that when pay¬
ment of goods in kind take place,
Reserve for
be those most needed
I
7,289,612.65
$107,289,612.'65
4,350,530.35
4,745,615.30
Reserves for
Taxes, Expenses, etc.
Dividend Payable July 1, 1947
Acceptances Outstanding $7,201,957.91
(Less own acceptances
.
•
held in portfolio)
1,125,000.00
corner
Although it
pays
grocery man to call
in
of which France has large
undeveloped supplies in its terri¬
that the customer may start trad¬
ing in
ing all
tracts.
pay
Some nations who may or may
riot be members of the World Bank
over
him
to
customers
again,
do
this
Other Liabilities
398,354.92
Deposits (including Official and Certified
Checks Outstanding $27,267,966.24
1,168,958,597-89
Secitrities carried
at $18,427,734.61 in the
foregoing
deposited to secure public funds
and for other purposes
required by law.
statement are
*}Assessed
Valuation $4,201,690.00
Charter Member New York
Clearing House Association
Member Federal Reserve
System
Member Federal Deposit Insurance
Corporation
with
not
all
his
goods such as
or consumer
fruits,
etc.
All of these
products lend themselves to trad¬
the
form
of
futures
con¬
When payment is tendered
kind
a
required number of
in
large contracts for the
delivery of the bulk of their ex¬
portable goods and services on a
future trading
them to the United States
direct barter basis.
profit/
make
may
Bank
loans
make
while
at
These nations
at
the
World
the
same
time
do
business in this way outside. When
their economy begins to get de¬
pressed, their exchange will suf¬
The Monetary Fund will then
many
worthwhile
case
.
This
might contain that
may
This might continue
theii; credit would no longer
have
the
been
with the United States in the
past. It may have been sufficiently
profitable to sell goods abroad and
ultimately cancel the remaining
debt, but obviously this procedure
natural
our
limited.
ered to the Bank.
industry through
commodity exchanges in re¬
turn
for
worthwhile
could
allot
members
the
in
relief
would
be
the
gation
and
exchange would then become
it take
own
to
Monetary
decide
so
Fund
to
bring a
exchange stabilization. In¬
asmuch as depressions are a pretty
sure
thing to count upon, coun¬
advantage of it.
The settlement
of
international
debt
It
various
the
proportion to their
It could sell them to
the
of
;
thing is certain; the debtor
business
the
to
organization
One
would
have
other
or
,
if other nations who do not follow
that
sell
could
world.
United States to follow this method
would
them
subscription.
re¬
for
It
currency.
governments for stock piling.
certainly
It
The Bank could
then sSll them to
the
be good at the World Bank. Their
able
to
again.
be
obli¬
his
meet
would
able
to
do
The "creditor
receive
payment and his
obligations
would
remain
sound.
If full value of the debtor
by goods in kind might cre¬
ate
some
concern
amongst the
leaders
of
industry.
However,
obligation is not realized from the
one by one, will meet this
fate with the World Bank and the
there need
ficient to make up the difference.
The attitude of industry toward
Monetary Fund and gradually be
ternational
forced to
sible and that this trade could not
do
more
national trade
izers
on
of their inter¬
an
exchange-of-
the
World Bank
once
be
no
proved that much
trade
if it is
concern
more
would
be
in¬
pos¬
successfully carried on In any
way in our modern world
where an increasing part of inter¬
be
other
interesting that the
of
organ¬
and
the
Monetary Fund tried to solve the
difficulty of the shortage of in¬
national
a
trade
barter basis.
why
is
being
There is
done
no
on
reason
industry
should
be
con¬
cerned; in fact, industry will be
having economic difficulties by helped in a very large measure if
merely shifting loans from one the machinery for settling pay¬
source to another.
In the past it ments by goods in kind is prop¬
has been the experience of the erly set up.
United States after loaning great
In the first place, futures con¬
sums of money to
foreign nations tracts of a large number of prod¬
to find it necessary to cancel these ucts, both producers' and consum¬
debts in order to start doing busi¬ ers' products, could be created and
ness
again with those same na¬ traded on the principal commod¬
tions.
It is strange that the or¬ ity exchanges. These futures con¬
ganizers of the Bank thought that tracts could be made sufficiently
this ultimate fate could be avoided numerous
and
liquid so as to
if the World Bank and the Mone¬ embrace the basic production of
tary Fund loaned the money;
It all the nations. The exact type of
could be argued, that inasmuch futures contracts which would be
ternational
$1,293,093,043.48
it would
so
tories;
wines,
futures contracts would be deliv¬
It is
6,225,332.37
account
on
large debt began to trade
times.
This is
only if the previous
trading has been so large as to
contain a profit sufficient to offset
the relatively small debt, or if his
goods-in-kind basis.
976,625.54
by the cred¬
ment the
large customer who
tries,
Contingencies
or
erals
unlimited.
the
be
75,000,000.00
Undivided Profits.
un¬
unfairly. It might even
be so well planned that the goods
in kind tendered for debt might
equally
not
cannot
*
so
it would not affect industries
his
halt to
*
could
contracts
Futures
arranged
of
weak
Capital Stock.
Surplus.
them
use
producing machinery of
the world.
Projects could cover
minerals, such as lignite, bauxite,
lead, aluminum and other min¬
are
LIABILITIES
It could
properly organized worldwhich is definitely
a
to make the gold exchange method
less important. Our resources are
sources
1,055,152.80
interested
are
itor nations.
creases
assist them.
$1,293,093,043.48
piling.
various
the
relief program
elsewhere and cancel this debt
until
,
who
governments
market.
to
own
cannot continue if
2,955,447.79
Other Assets
world
open
sell them
in stock
of
sell
could
receive
5,246,451.49
Acceptances
Receivable
the
could
for
It
contracts.
preference
to
fer.
Accrued Interest and Accounts
and antici¬
1
of the United
How would payment of goods in
gold instead of kind operate? For-example, sup¬
goods and ser¬ pose a loan of one billion dollars
vices may eventually lead it to were made to France
covering one
very serious consequences.
Busi¬ hundred separate projects.
The
ness can be done on a
very large resources of France are sufficient¬
scale without gold, and if the pro¬
ly great that a choice of projects
portion of business of interna¬ could be had which would supple¬
States
goods for its
2,231,697.97
118,773.38
Mortgages
Credits Granted
thereof.
The World Bank would receive
toric difficulties might be consid¬
to
.
U. S. Government
would
it
title to these goods in the form
his
will undoubtedly find it practical
ASSETS
and
tance Of the payment
pation
trade taking place on a direct bar¬
165
available
not
not necessarily upset any particu¬
lar industry because of the dis¬
ter basis.
Founded 1824
products
extending them to a longer-term
basis
(two
or
three years)
it
would foe possible for any nation
to payI in kind where exchange
erably exaggerated in the future
with a large part of international
TRUST COMPANY
which futures con¬
at
tracts could be tendered need not
be
businessman to meet his
a
is
also
major loan consisting
moral
which
model of
Settlement by Goods in Kind
its debt. This can be done by
enabling the debtor nations to pay
in goods in kind—in the products
resulting from its debt wherever
exchange is not available. In the es¬
Bank staff, it is unlikely that the
The
tioned when
be
at
again.
tervals under the
protect the interest and principal
requirements of the major loan.
upon
improved upon. Perhaps this
is true, but it does not solve the
basic problems of
helping nations
tion
long-term bonds could be sold to
those interested in long-term in¬
vestments at a higher return.
passed
have
been
completion and amortization
would take place at different in¬
tee
services of all the combined proj¬
ects would thus be more likely to
would
be too difficult to
It would not
arrange
in
project would be a guaran¬
against the failure of other
projects and * the products and
condition
out of
their domestic economic
difficulties by making it possible
arate
project must
by the borrowing
nation, and approved by the World
in addition to the
signatures of the producing and
receiving parties as guarantees for
has L
be
ing soundness of each
the plant
the L in.
to
risks.
project by the borrowing country
oe
various times the actual goods or
the machinery and equipment, or
even
have
economic
Since the economic and engineer¬
have been making
loans to help the manufacturer
produce certain goods and sell
many
would
of
the
for them to sell goods to
pay their
debts so that they can
borrow
as
have
Bank and the
reports from the debtor
natipn until the loan is paid.
loan
would
a
lance of the World Bank through
project
a
of
regular
large num¬
ber of specific projects. The major
include
A
certainly not a new idea.
specific loan is a loan against
a
definite project which would
require definite machinery and
materials to be paid for in whole
or in part out of the proceeds of
the loan; the products or service
of the project as well as the ma¬
chinery and equipment of the
production
the
large
loan would
against general purpose
as
Corpora¬
large amount of
a
that each
It is true
but
savings all over the world to be¬
come
invested
in
World
Bank
bonds. The facilities of the Stock
service
of
payment
principal
of
foreign
debt
could be clearly set up. Although
and
among all the members and, there¬
investment
and
in
tendered
fore,
tion has made
used to encourage
banks
cm
the
borrowing country and staff of the
World Bank.
Once the projects
are completed their operation re¬
Finance
specific purpose loans.
rect the world's
mercial
of
to cancel large amounts of loans
the burden would then be divided
basis
poration could be used in creating
The facilities of the large com¬
borrowers would
large number of
international
an
on
Reconstruction
ganization which would help di¬
exchange of goods.
the
members
diverse projects, all of which have
been properly studied by both the
loans
and with considerable success. The
export and import clearing or¬
of
be
World
Monetary Fund, that
when these institutions would have
(Continued from page 6)
rience of the Stock Clearing Cor¬
an
Operation
also
Thursday, July 3, 1947
exchange in
a
nation
sale
of
his
the
goods,
will
reserve
be
more
insurance
than
this transaction cannot be
sonable.
suf¬
unrea¬
It is this type of
trading
that will make it possible for in¬
dustry to keep selling abroad. The
futures
much
and
markets
greater,
would
more
liquid.
more
become
world-wide
If any domestic
market becomes
seriously threat¬
ened, the futures contract can be
sold to government for stockpiling
or for relief.
If none of these pos¬
sibilities
the
are
World
such goods
and
all
do not spoil
the
be
futures
the
at least
that industries all
could
as
when
market
ready to absorb them.
cases
could
in kind
them
sell
became
practical at the time,
could stockpile
Bank
adjust
„
a
year
over
In
tendered
away
so
the world
themselves
to
the
supply of these products.
The insurance
reserve
Bank could set up
which the
might be fixed
at 2% or one-third of the interest
[Volume 166
its
on
loan., This fund
come
a
size,
Number-4608
sufficient
serious
now
to
Bank's mutual
experi¬
borrowing nation will cooperate
fully at all times in the servicing
Housing Ad¬
of the loan and in the payment of
proportions.
could
be¬
considerable
weather
difficulties.
of the
ence
this procedure a very valuable as¬
surance
that the people of
the
of
reserve
THE COMMERCIAL & FINANCIAL CHRONICLE
The
Federal
ministration has been
a
very
very good
in this respect. The one-half
of 1% as insurance has been
more
than sufficient to offset losses on
one
loans.
The
financing companies
found the insurance
principle so
profitable that they created insur¬
ance
company subsidiaries for that
.very
purpose.
'
'
-.
its
on
reserve
two pur¬
serve
(1) to adjust interest rates
poses:
bonds
own
the
so
to
not
as
create
a
for
reserve
losses
and
ation.
The interest rate
for
be
borrowed
from
the
plus
2%
oper¬
on
money
Bank
(4
the
same
consid¬
a
advantage in eliminating
discrimination of credit risks.
be
too difficult
machinery
collateral
to
projects)
under
to
each
major loan at 100% of the amount
of the loan
outstanding. These
on
be
re¬
numerous
projects
arranged to mature
rially.
se¬
■
The
Bank
could
sell
this
on
plan its own bonds on a serial
basis at rates of interest
prevail¬
ing in the various money markets.
Inasmuch
long-term govern¬
ment bonds, in the United States
as
for example, sell at
2%%,
sell its own bonds at
2J/2
the
short-term
it could
to 3%;
bonds,
in
the
United States for
example, could
be sold from 1 to
2%, commensur¬
ate
with short-term rates in the
United States. The difference be¬
tween these various rates of inter¬
est
covered by the World Bank
bonds and the 6% rate of interest
<
charged by the World Bank would
be used for the Bank's mutual in¬
surance
reserve
fund, general
penses and the expenses of
its
ment
banking houses.
It would
ible
ex¬
selling
bonds through the invest¬
own
to
make
loans
of
dollars with
less
the
than
aver¬
loan amounting to about 500
million
dollars.
The
size
of
the
individual project under the loan
would be around one to ten mil¬
lion
dollars.,
Thus,
each
loan
being
constantly supervised and
attended to by the debtor nation
By proper diversification of indi¬
self-
a
Every project
loan would be protection
all other projects under
that loan.
a
lien
on
a
The
on
the
of
terial
the
Bank
would
have
machinery and ma¬
project, as well as
proportion
goods
of
the
resulting
services of that project,
or
As in the
of the
case
financing
companies and also in the
experience
staff
of
the
nation to
World
assure
Bank
oped.
could
its
as
It
could
be
eco¬
nomic health of the borrower
tion
would
and
be
always
be
decline would
a
noticed.
na¬
of its
built
up
business
by
devel¬
overcome
in
the uncertainty of
governments
of
cause
Measures
decline
a
could
Two
and
the
econ
Classes
of
to
would
be
all the
mercial
banks could
tensively.
The
the
World
set up a
Bank, there
an
collateralized
be
banks,
used
by
This endorsement would be in ad-
J
dition to
?
particular government and would
definitely place the responsibility
the
of the loan
the
endorsement of
on
the
the people as well
government.
We
have
world's exports
necessary.
and municipal governThe experience in this re¬
been such
as
to
make
By extending the machinery of
World Bank along the lines
of the above ideas, all materials
the
all
the
over
will
world
available to all nations.
make
piling
and
program
interested
and imports. The
in
of
this
nations
those
type of
insur¬
Although stockpiling is or¬
advantages of this clearing house
ance.
would be to facilitate the balanc¬
dinarily
would .also
It
statistical
exactly
goods
as
serve
thought
in
of
were
protection,
terms
of
there
and
crop
failure
is
become
It would
and
would
It
peoples.
thrift
because
of
good return
encourage
the
on
soundness
investments.
eliminate the great dif¬
ferences between nations
the
stable
more
representative of their
in both
political and social spheres by
of
virtue
their
more
standards of living.
quite feasible.
being
governments
more
It would
is
of human needs where
area
catastrophy
showing
organization,
what
Guaranty Trust Company of New York
FIFTH
fifth
140
AVE. OFFICE
Ave.
at
Madison
in
the
these loans
anc
Cash
prevailing
market
where
are
loans
made
interest rate sufficient to
the 2% insurance
reserve
include
and
of selling the Bank'»
penses
and of
ex
own
operating the Bank
the
its
World
own
as
sell
would
bonds
all
not
be
upset.
the
Savings
types could be tapped
of
surance
high
by
o:i
as
investment
security
by the appeal for a
for a speculative in¬
rate
come.
Hand, in Federal Reserve Bank, and Due from
U. S. Government
$
Obligations
Loans and Bills Purchased
Fublic Securities
.
too
duced.
large,
Until
it
that
Bank's
alized
Stock of the Federal Reserve Bank
Cther Securities and
Credits Granted
could
on
Obligations
Acceptances
.
:i
.
86,086,185.88
9,000,000.00
.
.
10,536,043.20
.
.
3,780,808.77
10,966,484.77
Receivable
Real Estate Bonds and
Mortgages.
1,405,637*19
.
121,775,159.81
4,886,185.78
135,002.72
Bank Premises
Cther Real Estate
$2,808,162,974.99
Total Resources
be
re¬
bonds
repre¬
credit and collat¬
numerous
as
liquid
The
as
any
Bank's
sold
in
any
58,124,196.08
Undivided Profits
Total
Capital Funds
security
own
bonds
part of the
and could move easily to
part of the world. In fact, the
bonds could be
.
.
.
Outstanding
easily negotiable than gold
itself.
They could be listed on
2,417,706,061.39
Acceptances
Less: Own Acceptances Held for
Investment
.
$'
6,678,433.23
.
$
Liability as Endorser on Acceptances
and Foreign Bills.
*. . . . . .
Dividend Payable July 1, 1947
.
.
.
Items in Transit with Foreign Branches
.
3,780,808.77
328,334.00
.
(and Net Difference in Balances between
Due to Different Statement Date of
10,459,242.00
3,000,000.00
Various Offices
278,650.17
Foreign Branches)
Accounts
Payable, Reserve for
Expenses, Taxes, etc. ..•••••
24,944,924.58
all the exchanges in all of the fi¬
nancial markets of the world and
be
interchangeable
country to another.
from
32,332,717.52
by
would
numerous
would
be
Bank's
entire
be
well
supported
guarantees.
They
guaranteed
capital,
by
the
which is
$2,808,162,974.99
Total Liabilities
one
Confidence in the World Bank's
bonds
358,124,196.08
$2,382,683,139.73
35,022,921.66
Total Deposits
made
more
$
.4-
.
Deposits
Treasurer's Checks
100,000,000.00
200,000,000.00
specific
world
own
$
Capital
'.
Surplus Fund
a
projects, would be a security as
strong as any known and could
be
.
Accrued Interest and Accounts
time, however,
own
own
the
by
.
would be
great
advantage in setting up and oper¬
ating the machinery required for
payment of goods in kind.
senting its
.
596,220,879.07
1,406,053,590.09
679,092,157.52
LIABILITIES
reserve
the fund could be used to
The
.
....
.........
.
.
The insurance
any
on
than
rather
BRUSSELS
PARIS
•
Banks and Bankers.
Bank
at
prevailing interest rates, the vari¬
ous money markets of the worlc
would
60th St.
RESOURCES
re¬
being sold.
by the Bank
could be arranged to carry a 6%
All
at
directly to
companies
money
Ave.
40 Rockefeller Plaza
LONDON
rate of interest for short-term pa¬
per
MADISON AVE. OFFICE
Broadway
St.
44th
ROCKEFELLER CENTER OFFICE
Securities carried at $95,316,723.33 in the above
n
State
economy.
bonds
1
such approvals of special loans in
world
ex¬
short-term
insurance
become
would vote and endorse the loan.
the
Condensed Statement of Condition, June 30,1947
short-term
ceivables could be sold
known.
election
to
Overall Economic Advantages
coordinate its work with the stock¬
be
could
clearing house of all the
,'T V:'v.
Bank's
to
are eager
gain
carried
definite
program
existing commodity
Notwithstanding the efficiency of
many commodity exchanges, the
number of futures that might be
used
collateralized by numerous speci¬
fic projects. The facilities of the
investment bankers and the com¬
Bank's
spect has
machines
collateralized by long-term major
loans which, in turn, would be
whereby the people in
our
They would be
direct lien on all
Bank's
the
coor¬
a
MAIN OFFICE
World Bank could arrange
sell its own long-term bonds
could
ments.
exchanges
Bonds
The
to fur¬
ther the projects under the loan,
an
arrangement could be made
on
a
and
the
in
be
im¬
could be strengthened.
omy
of the
and
that the people
sure
borrowing nation
as
the
all
kind
can
with
projects covered by all traded could be
allow unlimited development of
extended in a
the Bank's loans. They would be
large measure and could easily sound projects wherever located.
secured by a lien on all the prod¬
include many finished goods yet It would open the door to un¬
ucts of all the projects covered
limited investment of a sound na¬
to be standardized
by industry.
ay all of the Bank's loans.
They
ture and tap the savings all over
After proper study by a com¬
would be additionally secured by
the world. It would tend to main¬
mittee of economists, the staff of
an
export reserve fund kept on
tain production in all countries
the World Bank would determine
deposit at the Bank by each na¬
wherever the desire and ability
what products of any given bor¬
tion, made up of a percentage of
to work existed.
It would raise
all the exports of that nation. This rowing nation could be subject to the standard of
living and effici¬
tender
for
debt
to
the
Bank
reserve could remain fixed when
ency in all countries where peo¬
should that nation find it difficult
it reaches 20% of the borrowing
ple desired to improve themselves.
to pay through the regular chan¬
of each nation.
It
would
tend
to
make
people
nel of exchange.
Along with the idea of an ex¬
more
satisfied
and,
therefore,
This
same
committee
should
port reserve to be deposited with
on
which, in turn, would be collater¬
a
of the world and the machin¬
of international exchange.
changes
,
material
the
in
contracts,
net
relief
mediately be taken to correct the
came
omy
make
of
with
the
Bank made loans.
guaranteed by
goods
futures
of
peacetime
apparent
eralized by all of the major loans
To
whom
of
dination
machinery
up
sufficiently
immediately
ex¬
success
become
the
the
Bank
the
of
success
great
ery
to
receive
form
set
Stockpiling for protection against
the
factor in guiding the general econ¬
„
nations
to
tions.
of
in
gathered
A staff of engineers and
economists
the
the
o
order
large
by
of
amining the economic value of
any specific project might become
very
helpful to the borrowing
project.
In
in
on
25
it will not tolerate
of slums.
A
large>
areas
amount
military
mutually owned and would, there¬
fore, not be an undue burden on
any particular country.
If it be¬
case
th^ RFC and Export-Import Bank,
the
all
large
Exchanges
nate the needs of the various na¬
Inasmuch
its
on
liquidating nature.
against
up to very large
They would have the
ing of world trade and to coordi¬
bonds
project standing
feet, and each being of
a
built
be
If the world becomes
prosperous,
Use of Existing Commodity
projects, a cross-section of
industries is obtained as a further
vidual
ccts, each
under
of
.
would ha,ve from five to 100
proj
<own
receivables
project used as collateral for
major loan could be arranged
serially and would become due
and operative serially, the con¬
other institutions at the
probably not be feas¬
50 million
age
one.
the
as
major loan. The trend of the
World Bank Serial Bonds
,
fund which
guarantee
ceivables
could
ex¬
longer
no
guarantee that the major loan is
have
individual
were
maintain
pay
would
definite
loans
(representing
would
establish
the
that
tinuous flow of interest and prin¬
cipal payments become a continu¬
ous signal that
all is going well.
When one of these projects fails,
the red light immediately shines
and the next project is watched
more
carefully. This method of
operation is a sound assurance and
6%
insurance). All
rate.
not
used
a
erable
It would
very
improperly by the then
Inasmuch
in
World
borrowers
This
default
each
could be standardized at
interest
peo¬
of
excuse
reasonable
a
how.
the
of
The
isting government would
ordinary
expenses
the
made
reserve
exported and imported, where and
They
by
general guarantee of the borrower
nation endorsed by the people of
the nation.
They would be guar¬
anteed by all of the receivables
ple would be dealt with directly
as well
as through their
properly
authorized
governments.In
a
upset the money markets, and (2)
to
be
often
could
guaranteed
transcended.
fact
would
be
(
advantage in this
making loans would be
that
partisan politics
method of
crisis
The World Bank could make the
insurance
the principal.
A particular
about 10 billion dollars.
would
(25)
oneys as
Statement are pledged to qualify for fiduciary powers, to secure public
This Statement includes the resources and liabilities of the English,
required by law, and for other purposes.
French, and Belgian Branches as
of June 26, 1947.
Member Federal Deposit Insurance
Corporation
r
•
similar
26
THE COMMERCIAL & FINANCIAL CHRONICLE
(26)
The Price Level
(Continued from page 10)
cost Of living index from
mid-1046 to April 1947, was due
in
the
to
increase in the cost of food,
another 13% to an increase
an
and
that will permit a sustained high
'high prices" has been couched
building activity.
Hopes in general terms. Attention has
period of several yeajfe ofi not been focused, nor has policy
business prosperity rest in large been directed, toward
reducing
measure on the premise that con¬
specific prices or groups of prices
level of
for
a
price of clothing. Expendi¬
tures on food are absorbing an
abnormally large share of income,
and
high prices for necessities
struction costs
have put consumers
be reduced suf- j that
of
in the
sure.
came
under pres¬
Several months ago, it be¬
evident that consumers were
weighing their purchases of lux¬
ury goods more carefully; the col¬
lapse of the diamond and fur mar¬
kets last year, and the curtailment
of expenditures for
jewelry and
for dining-out and entertainment
were tangible indications of the
can
ficiently to permit a high level of
construction.
Effects
on
Business—The effects
rapidly rising prices on busi¬
ness enterprise are numerous and
complex.
Rising prices have in¬
the dollar volume
creased
of in¬
ventories
required by American
business, and have thus contrib¬
uted to the rapid expansion of
commercial
industrial
and
j
at inflated levels relative
are
to the general price level.
The
emphasis upon aggregate corpo¬
profits fails to recognize the
diversity in the profit records of
individual companies and indus¬
tries. Furthermore, while business
profits are large, they are not gen¬
erally excessive when measured
against the current high dollar
rate
volume
of
business.
lower prices
pressure to which consumers were
beginning about the middle of last may have influenced some manu¬
year.
Rising construction costs facturers to absorb, where possi¬
have increased demands for funds, ble, the recent round of wage in¬
being subjected.
and have raised the difficult
Consumers
becoming
are
more
selective
in their buying.
Good
quality merchandise is generally
sold
when
out
advertised
reasonable price.
of
ume
at
a
lem
low-markup
merchandise seems to be holding
up well, while sales of specialties,
or
high - markup,
semi-luxury
items are frequently showing a
decline. Apparently, the
physical
whether to
con¬
without
creases
a
significant in¬
in prices. Other than this,
not apparent how the con¬
crease
tinue with building plans or to de¬
fer them pending some improve¬
it
versational
approach
ment in the cost situation.
fective
accompanied by a
the underlying eco¬
The sales vol¬
standard,
of deciding
prob¬
High prices and the large vol¬
of business have contributed
ume
to large corporate profits in the
past few quarters, but the prof¬
is
be
can
ef¬
unless
change
in
nomic situation.
However,
wide¬
a
spread conviction
on the part of
and business men that
consumers
the price trend is definitely down¬
are partly illusory.
Accepted
ward might encourage more busi¬
principles of accounting are not
ness managers to extend the
prac¬
well designed to cope with the
volume of goods sold by depart¬
tice of hand-to-mouth buying and
financial realities confronted by
ment stores is lower than it was
of inventory reductions,
already
business management In a period
in comparable
evident in some fields. In turn,
periods last year, of
rapid price change. A portion
in spite of a larger turnover of
this might put some prices under
of the profits represents the sale
durable goods which have been in
additional pressure.
of relatively cheap inventories on
short supply.
a
higher price basis, with the
Has the Peak of Prices Been
Effects on Construction
One risk of offsetting losses when and
Reached?
of the most serious effects of the
if the price situation is reversed.
The peak of prices after World
price rise has been a great in¬ While annual provisions for de¬
War I was reached in
crease in the cost of construction.
mid-1920,
preciation may be sufficient to
about eighteen months after the
The rapid rise in the
prices of amortize the book value of
.
copra, cotonseed "Oil, coffee, flax¬ has
been in progress since the
seed, lard, lumber, steel scrap, | middle of 1946, apparently came
hides,
silk,
tallow,
turpentine, to a halt early in April 1947. Some
cocoanut oil,
molasses, and crude bankers are less eager to make
rubber. Price reductions, although
generally of modest proportions,
have been made in the cases of
some
its
shoes, nylons, women's
parel
been
building materials, increased hour¬ erty and plant, and may be in ac¬
ly wage rates, and a decline in cord with
accounting practice, the
the efficiency of
building opera¬ amounts so provided are likely to
tions in general, and
ductivity
are
all
of
labor
in
in
the pro¬
particular,
contributing factors. Exact
information as to the extent of
the increase in construction costs
is
difficult to obtain since most
indexes do not adequately reflect
all the elements of increased
cost.
In
addition, deterioration
ity introduces
tion.
On
pears
are
another
in qual¬
complica¬
balance, however, it
ap¬
that construction costs now
least double the prewar
at
level.
Residential
perhaps the
building
provides
most
striking illustra¬
happens when a com¬
tion of what
modity is priced out
In the face of
of the market.
building materials,
new
con¬
tracts have, been
running behind
corresponding
months
of
last
year, some unemployment has ap¬
peared in the building
trades, and
existing structures
ficult to sell.
are more dif¬
This situation shows
with unusual
clarity the effects of
distortion in the price and cost
structure.
It
probably
typifies
other comparable situations
which
are widely prevalent in
the econ¬
omy today as the result of the un¬
even increases in
costs, prices and
incomes.
One
Business
forced
to
concerns
grant
our
most
important
needs is to obtain a cost
situation
been
substantial
in¬
in
in the prices of finished products.
Consequently, profit margins have
been
narrowed
and
the
break¬
point of many industries
raised significantly. So long as the
economy
operates
at
capacity,
large volume. may permit the
maintenance of satisfactory prof¬
its, but the impact upon profits
of a period of declining business
volume may be serious indeed.
even
"Talking Prices Down"—In
cent
months
re¬
effort
has been
made, mostly in Government cir¬
cles, to "talk" prices down. Some
an
of these attempts probably repre¬
sent no more than a desire to
make
political capital out of the
present high, unpopular level of
prices, and cost of living. Others
use
the argument as a part of
their plan to "maintain mass
pur¬
chasing power" by reducing cor¬
porate profits. Others are prob¬
able
sincere
restraint
help
to
in
in their hopes that
raising prices would
break
to
the
wage-price
show
chart
in
prices
in
the
two
the
postwar
pe¬
two
pattern of World War I?
Recent
experience
once
more
periods
small
declines
foregoing do not indicate a
major price decline as yet. About
can be said is that
during
the past two months
prices have
shown signs of Reveling off.
(2) Prices ofCoasie agricultural
commodity ^markets, based
best available
needs
our
increased
^foreign
that
tomers
and
dollars
of
with
a
several
to limit imports; j
have taken steps
goods.
consumer
This situation is likely to
become
more general and producers may
find
it increasingly difficult to
market some goods at continued
high prices.
con¬
many
down in some
material
of
particularly
prices are on
foundation and are
adjusting their buying policies ac¬
cordingly. New Orders and output
raw
confronted
are
shortage
insecure
Past Price Readjustments
lines, easing the
situation. In some
On four
-
other occasions in the
view of business.
They
voluntary inventory accumulation
and pipeline filling appears to be
coming to a close. In fact, some
that
the
of prices
had been passed.
expected
that
in
continued
declines
the prices of farm commodities
and foods
would
of
some
the
to correct
serve
distortions
in
the
price structure and would more
than counterbalance some further
rise in the prices of other com¬
modities. However, in the early
part of this year, more informa¬
tion became available as to the
state of the foreign food situation
and the President's
prograrm of
enlarged aid to foreign countries.
Thereupon, the index resumed its
upward
a combination
circumstances may result in a
of this process during
repetition
foreign
obligations,
another rise
and food
change
iquidation of
reported.
prices.
in
the
The
excess
era
of
might
farm
some
Except for these
however,
there
of
movement
eventually
returned
to
level. However,
prices
inventories is
about the prewar
(4>The rapid expansion in com¬
mercial and industrial
a
considerable period of time was
sometimes
loans, which
Prices—Weekly
Commodity
Farm
and
££•--—
Building
Chemicals
materials
__
—Li/.
——————
HousefurnishihgS
Raw
materials
Semi-manufactured
Finished goods JLi-
ZM
Total
163.1
132.4
(Apr. 19)
132.2
—0.2
(Feb.
22)
139.6 (Apr. 12)
104 4 (June
7)
166.6
—5.2
138.5
—0.8
104.4
142.5
(June
142.5
178.6
(May
134.5
(Apr.
(Mar.
7)
10)
5)
31)
29)
12)
8)
149.4
lighting,.
8)
143.7
leather
Metals
(Mar. 29)
147.9
129.5
(May
165.5 (Mar.
146.2 (Apr.
TABLE
129.5
161.8
142.5
142.9
—1.0
VI
1920
•
change in wholesale prices
peak
Decline
1920
peak
to mid-1922
139
45
Food
130
~42
Other commodities
162
41
—•
146
44
v
261
62
133
38
146
42
Farm products
Raw materials
temporary, rise, but it is believed
Semi-manufactured
—
products—
Finished goods—
•
more
120
120
This
near
100
TABLE VII
conclusion, that prices are
peak, is based on the
Per cent increase in wholesale
their
consideration of
100
Total
a
number of fac
1914 to 1920
,
Fuel and
lighting
....
—
prices
1914 to mid-1922
91
:
peak
271
tors:
Textiles
256
83
Significant declines from
recent highs have been registered
in the prices of a number of raw
Building materials
219
82
Hides and leather
187
Housefurnishings
164
81
materials
Chemicals
113
23
96
30
(1)
butter,
and
foods, including
cheese, calfskins, cocoa
Metals
.
124.7
1914 to
the
i
.
177.5
Increase
such movement will be
—4.5
(Mar.
175.8
commodities^-—-
Fuel
—2.6
(Mar. 15)
170.7
s-rr.
Other
(1926: TOO)
% change
7,1947
179.5
Per cent
than offset by declines in
the prices of farm and food com
modities and some other raw ma
terials.
ad-
184.2
products—£
Food
Index
June
1947 Peak
seem
of
for this
required
TABLE V
Wholesale
is
during
the
next
twelve months. The prices of some
that any
lowing World War I. Each of these
peaks was followed by a substan¬
tial
readjustment during which
downward, rather than
a
the
that of 1865 following the
War; and that of 1920 fol¬
1812;
Civil
near-
ing its end. The probabilities
comparable with
the peak which
roughly
levels:
Revolutionary War;
that of 1814 following the War of
of rapid
point
to believe that the postwar
is
present
'
Textiles
It is possible that
of
nificant
Hides and
course.
peaks
are now
manufactured goods may show a
further
modest, ■ and
probably
140
gifts.
peak
convinced
upward,
price
index
140
appear
program
our
rials and components
businessmen
unless we further expand
of foreign loans or
Already some of our cus¬
for long
program,
ignored,
(3) Business sentiment is shift¬
ing away from the tendency to
build up large stocks cf raw mate¬
an
move¬
became
and
160
as
pros¬
cannot be
more
the
general.
The present levels of pro¬
being sup¬
ported by a large volume of ex¬
ports. In March and April 1947
exports reached the record month¬
ly peace time figure of $1.3 bil¬
lion, or an annual rate of morethan $15.5 billion. Recently,; im¬
ports have been running at less
than 40% of the rate of exports.
This
unbalance cannot continue
is future prices,rin the
widespread discussion of
of
more
(7)
pects, is convinced that prices will
lower when the new crop is
made.
Admittedly, the markets
may be in errorj but the persistent
discount
and
increase
duction and prices are
be
face
to
ment become
seeking safeguards against
price declines. This reflects a sig¬
and food
to favor
160
crop
tinue
some commodities
being
largely offset by declining farm
prices. Many observers
prices of
inflationary price boom
160
and
in many areas
is putting the
price structure to test, and is com¬
pelling many producers to im¬
prove quality and reduce prices."
This pressure will probably con¬
on
information
resist-,
(6) Accumulating buyer
ance
commodities for future deliveries
continue to be quoted substantially
under spot prices.; This abnormal
situation indicates that opinion in
future
predominantly held in
the banking system.
all that
the
Large
Treasury
receipts have been used for
ment debt,
The
to
net
followed
commodity index began to level
off, continued increases in the
leason
160
cash
a
months.
and
retirement of short-term Govern¬
peaks reached earlier in the year,
as seen in Table V.
he
balances
cash
the
over
recent
in
effect
and
has had
pressure,
By June
most of the commodity groups
showed
deposits
past, wholesale commodity prices
in the United States have reached
contingencies,
1926s|00
the
instances, surpluses are replacing
scarcities, according to reports of
purchasing agents.^Escalator claus¬
es
have disappeared and buyers
indicates the danger of forecasting.
In the latter part of
1946, the all-
our
postwar
bank
of Labor Statistics.
reau
of
inflationary
deflationary
of contributing to the creation
weekly prices indexes of the Bu¬
are
high point of the
wholesale price index been passed
and will the decline follow the
mean
wholesale
in
up
vinced
Has
Most of the conversation about
meshed.
have
and
striking in
riods.
oration of domestic crop
prospects,
or a still further
enlargement .of
have, been
1920-21.
as a hedge
against further price increases and
as an aid to production. More and
en¬
we
prices
.numerous
Armistice.
The behavior of the
wholesale price index after World
Wars I and II is shown on Chart
III. The similarity in behavior is
the next few months. Bad weather
conditions and substantial deteri¬
spiral in which
of
have
wages, and increased
costs have not been fully reflected
creases
a
pressing housing
shortage and increasing supplies
of
inadequate to replace prop¬
erty or equipment under a higher
price level.
prove
generally have not begun to
outstanding loans, a factor
that contributed to inventory liq¬
uidation
and
price declines in
call
(5) The Federal Budget, instead
in
sufficiently
important
and
ers
ap¬
automobile
bronze products.
The
declines
loans,
inventory
using more care in their eval¬
However, bank¬
uation of credits.
and accessories, some tex¬
agricultural'm achinery,
tires, and brass and
tiles,
—
prop¬
additional
are
manufactured goods such as
soap,
,
The campaign for
loans
Thursday, July 3, 1947
i
43
Volume 166
Number 4608
justment. Thus, after the Civil wage scales have been incorpo¬
War,
13
years
elapsed before rated in many union contracts on
prices returned to the levels of a basis that make their reduction
,
1860.
left
The
the
correction
price
level
of
1920-21
substantially
during the
above the prewar level
difficult, if riot impossible.
price reductions may be
possible in some instances, it is
very
While
'20s, and it was not until the de¬
pression of, the early 30's that
prices returned to the levels of
1914. Thus", while past history sug¬
gests the likelihood of a correction
iii the price level to eliminate part
v
unlikely that the decrease, in the
aggregate, can be very significant
and yet preserve a profitable basis
of operations. Reduction in raw
of
requisites to general price reduc¬
the
war-engendered inflation,
material
in the
costs
and
improvement
efficiency of labor
are pre¬
itf does not indicate the likelihood
'
tion.
of
,
(27)
THE COMMERCIAL; & FINANCIAL CHRONICLE
(4) The greatly increased sup¬
ply of savings and liquid assets
may provide some support for the
price level.
Furthermore, while
prompt or rapid return to
prewar levels of prices.
In appraising the outlook for
readjustment of the present high
and unbalanced price structure, it
iriay be of interest to survey,
briefly, the magnitude of the re¬
adjustment that took place in
a
^■
the
dollar
volume
of
consumer
credit has passed its previous peak
weeks, there is no evidence as yet
of a significant downward move¬
ment of the price level. However,
of other commodities is substan¬ commodity prices in general have
tially lower, than the 1920 peaks. : probably passed their peak and
Prices are now about twice as high the next major movement is likely
as in 1939, whereas in 1920 they
to be downward.
were about 2% times the average 7'
(4) Prices are not likely to de¬
dropped substan¬
tially in recent weeks, others are
still in short supply, and many are
subject to greatly increased costs
of production.
In view of the changes in the
economy in recent years, the pre¬
war relationships among various
prices are not necessarily appro¬
priate.
Price relationships are
constantly changing as the result
of developments in
technology,
and production methods and costs,
as well as of changes in demand
in 1920*
food
for
present
appear
and the volume of instalment sales
1920 and continued for about
credit
is
especially
low. Instal¬
items of con¬
to June 1921.
Thereafter ment sales for many
prices rose slightly and by mid- sumer durable goods are currently
1922 the all-commodity index was well below prewar experience. A
about 40%
above prewar.
The substantial further increase in con¬
year
credit
general and all-pervasive nature
of the price decline which began
support
in 1920 is shown in Table VI.
price
unbalanced
as rapidly this time as they
did after World War I. Even with
cline
other
than farm and food, the
largest percentage increases over
prewar occurred in prices of tex¬
tiles, building materials, and hides
ture.
1941, it is still relatively low
against the pres¬
ent high dollar volume of trade,
1914.
drop in 1920 and 1921,
all^commodity index in mid-
the rapid
the
1922 was about 40% above prewar
unlikely that
index a
modities.
Raw
material
prices year from now will be as much
have risen much faster than the as *20% below current levels. This
prices of finished goods. Among WOuld mean a general level of
the various groups of commodities prices at least 50% above prewar*.
something
when measured
higher, while that
are
have increased 2 to 2% times as
fast as the prices of other com¬
resembling the
prewar relationships among vari¬
ous prices is a closer approxima¬
tion to economic reality than the
that
The indexes of farm and
prices
(2) Substantial disparities have
accumulated in the price structure
since prewar.
Since prewar, the
prices of farm and food products
and in the rate of business activ¬
of
1920 and 1921. The sharp drop in
prices began about the middle of
one
10% below the high point reached
materials have
ity. Nevertheless, it would
struc¬
Summary
The Bureau of Labor Sta¬
tistics
all-commodity
index
of
and leather.
wholesale prices is now
tions
(1)
the
the
have
occurred
recent
in
appears
all-commodity
(5) Correction of the maladjust¬
price struc¬
ture would require larger reduc¬
ments in the current
tions
in
appear
(3) While scattered price reduc¬
only about
It
levels.
certain prices
probable.
than now
Thus, many of
disparities may
time.
the war-generated
persist for
some
demands.
sumer
the
In
readjustment process,
wartime disparities
out.
Thus by mid1922 the price indexes of raw ma¬
the
some
of
were
ironed
terials
semi-manufactured
and
products were, rerestablished on a
relationship „/. in
line withthat
which prevailed before the war,
while
prices
of finished goods
only slightly higher.
How-,
disparistles were corrected. In 1922 prices
'of farm and food products were
relatively lower, compared to pre¬
war, than prices of other commodities.
Furthermore, among other
1
commodities, prices of some groups
were
not all the wartime
ever
that had increased
the most dur¬
ing the war period remained rela¬
tively high after the postwar de¬
cline, as shown in Table VII.
the
of
Anticipated
damentally different from that of
early '20s.
The monetary
the
authorities
are not
likely to ini¬
highly restrictive policies
they introduced late in 1919. The
tiate the
banks have much easier
the Federal
the
was
loans
this
much
time
as
in
World
War I, it is likely that the decline
the price level will not be as
in'
severe
riod
during this correction
it
as
in
was
pe¬
1920-1921.
A
number of additional factors sup¬
port this point of view:
(1) A collapse in farm prices
does not appear-imminent in the
future.
near
World
requirements
larger and world reconstruc¬
are
tion
proceeding
was
true
slowly than
more
World
after
War
I.
In
addition, in the case of a number
of important agricultural commod¬
ities, the government is now un¬
der obligation
to provide price
support, at least through the end
of 1948.
In
the case of major
farm products, even should world
supply conditions improve sub¬
stantially relative to demand, it is
generally believed that a decline
of
more
after
in
some
access
World War
of them may
pronounced
case
than 20 to 25% from cur¬
rent levels is
develops in the
markets, it does,, not
call
weak¬
commodity
likely
that- banks generally will put their
customers under
as
much pressure
they did in the early '20s. Al¬
though comparable and accurate
information is difficult to obtain,
the general opinion prevails that
there is less
tories
speculation in inven¬
credit how than
on
the
was
in 1919 and 1920.
(6) The business inventory situ¬
parable with the Excessive
lation
of
task
tural
likely to
are
ease
supporting agricul¬
ventory positions have been under
scrutiny for 6 to 9 months and
great efforts have been exerted
by business to prevent over-ac¬
cumulation, to improve the quality
of
inventories, and to reduce out¬
standing orders';*., Jn this process
some
price-cutting has material¬
ized, but this has-not been general
or widespread and in the main has
been limited to Vhierchandise in
I These factors am, likely to cush¬
ion price declineSillnd to hold the
decline
in
the
aii-jpommodity in¬
dex to less than
after the last
little
the 42% decrease
War*|While there is
tivity
t.
ment
of
business
ac¬
and increased unemploy¬
might contribute to price
weakness for
ever,
of
items.
How¬
the substantial redistribution
income
some
that
has
occurred
in
recent years,
the rise in the in¬
of living of
people formerly in the lower
brackets;, more widespread unem¬
ployment benefits, and foreign
shipments may help to support
food prices in a period of moder¬
comes
and
standard
ate business recession.
Prices of many manufac¬
goods have risen modestly
the face of greatly increased
(3)
tured
in
cests
of
labor
materials.
High
RESOURCES
P
Cash and Due from Banks
♦
.
\ I#
)
.
•
U. S. Government Securities
.
$230,510,355.58
•
P»
309,441,390.82
•
#
.
.
'
I
r\
M*
and Municipal Securities
State, County
.
.
.
.
.
15,005,879.32
.
mi
•
.
*
N
Other Securities
•
•
32,483,742.65
120,070,988.43
♦
,
.
•
•
•
.
•
rr
M
.
.
.
•
•
■'
ML
..
Loans and Discounts
Accrued Interest Receivable
|
■'
•
*
■
H
1,889,341.08
tangible gr'p'und to support
specific estimate^a drop of 20%
from the present levels, something
i
Customers'
Bank
Liability Account of Acceptances
than
less
3,221,519.64
•
1.00
Buildings
a
"7
2712,623,218.52
one-half^ the previous
decline, would le£ye the all-com¬
modity index afjjabout 150% of
Current7$nnking
prewar.
be
to
that
seems
LIABILITIES
larger drop in the
general level of prices is unlikely
a
terms of
While
than
the
1920,
distortions in
structure Jfre
they
In
in
even,smaller decline.
an
greater
the
their
less serious effects/
on
out
causing
output
a
the economy
after World
great reduction
larg£
in
the general
Some
of
Undivided Profits
Reserve for
....
Dividend
Taxes, etc.
.
.
.
(Payable July 1, 1947)
7 ?
! V r
V 'T " V"
.
V
T
.
.
Acceptances
j* ? * V
.
.
2,683,073.57
t875,000.00
195,473.02
.
4,501,551.47
Portfolio 4,077,825.29
conditions
Deposits
which
help to support the general
may alsoiinterfere with
necessary and desirable correction
may
.
All Other
•
Deposits
«
$
1,126,922.51
;Vj,
<
.
;7
646,492,060.56
645,365,138.05
price level
in
7,876,059-90
$8,579,376.76
.....
Less Amount Held in
$14,000,000.00
36,000,000.00
.
Unearned Discount and Accrued Interest
United States Treasury
pricef level.
the
Surplus
increase
in un¬
employment. This, ih turn, would
provide an element of support for
or a
Capital Stock (Par Value $20.00)
now
at the peak of
correction may have
were
>
volume
of Condition, June 30, 1947
'
prices.
lower
Statement
-V
^
supply. " -'V:-
excess
than was the caSd
Food prices, although they War I. Many offthe prices that
have declined from recent highs* have risen the most this time
are supported by a high level of
could decline substantially with¬
A
V-!
following World War I. In¬
(2)
employment and national income.
'
specu¬
price
the
BANK
as
world has been re-established. For
foreign needs
NATIONAL
seem
during the next 12 months.
fact, many observers think
time to come, however, large
PHILADELPHIA
I,
ness
unlikely during the
next 12 months. We probably face
serious
long-range problems in
coping with our prospective sur¬
plus of agricultural commodities,
once production in the rest of the
some
to
System than
ation does not appear to be com¬
Since the all-commodity whole¬
sale price index has not increased
as
Reserve
case
and while
Price
Decline
consumers'
(5) The credit situation is fun¬
case
Extent
be expected to
may
unsatisfied
$712,623,218.52
the
price structure., It seems
unlikely that prices'of some farm
products will decline sufficiently
in the near future t6 restore, even
approximately, tha prewar rela¬
tionship between farm and other
prices. Similarly, ; the large pentup demand for hbqsing and other
construction may limit the decline
in building costs. While some raw
27
FREDERIC A. POTTS,
President
7
Mtmbtr of the Federal Deposit Insurance
J* WILLIAM HARDT,
Chairman oj the Board
Corporation
28
THE COMMERCIAL & FINANCIAL CHRONICLE
(28)
ilization—have the
"Back Up the
Truman Doctrine"
13)
(Continued from page
tations of time, and
settled with¬
aggression.
out national animus or
Tensions
world
a
creating
war—now
healthy
World
fears—of
and
un¬
an
vanish.
would
apathy
third
wide record-breaking pro¬
duction
for
leased.
Currencies
be re¬
would
peace
be
would
Relief problems on
strengthened.
be inspired from our high¬
governmental quarters.
Any
organized and active moves along
must
est
line—at
that
conducted
barrass
they
negotiations
with
a
afford
not
disarmament,
be
our
all the key spots
in the world.
I
the Panama Canal—Suez—
Gibraltar
and, the
Dardanelles.
mean,
alternative
The
to
genuine
disarmament
versal
is
to
There is
push
hind
ing
you
lion
men
today
that the burden
under
puts
arms
19 mil¬
in the world
civilization is in
millstone
about
our
reality
a
necks.
on
Nor
is
there
coun¬
premature move
but that should
the
whole
of
pattern
affairs makes disarmament
people
the
feasible
the
close
will
President
Amer¬
ranks
in
any
be¬
con¬
troversy with foreign power.
have
of my remind¬
use
no
any
conversations
ican
preparedness.
foreign
immediate goal.
Until
world
uni¬
vigorously United States military
be
proved
in
two
our
ability to work
for
life
and
great
We
wars
and to fight
liberty.
All
other
things—our
business,
taxation,
political parties, and things that
concern
us
today—fade into in¬
significance beside this one gi¬
gantic fact.
Another war may
any use of
hysteria by dis¬
cussing the horrors of the world's come. It would relegate them to
The battle to sur¬
armament race.
It means living mere trifles.
in an armed camp. It means our vive alone would count.
standard of
Time is running out. Just a few
living of necessity
would be lowered to finance that years remain in which to work
arms
race.
In the atomic age it out a
functioning world organ¬
working
my
means
up
dismal
fortress.
That
life
insecure
an
rising mil¬
eventually our
means a
itarism
engulfing
Republic.
:
The
in
for
moves
ization able to maintain the peace.
It is our only hope.
It must be
done.
Today
powerful
disarmament
the earth.
we
nation
are
the
the
on
most
face
of
We—and Western civ-
few
a
more
Communism,
Then
the
atomic
will
too,
world
bomb.
Russia, and
years
will
it.
have
Dark Outlook for Office
divided
be
into two armed camps, each fear¬
ful of the other, and waiting for
the
conflagration.
Building Financing
explosion that will touch off
the
The
em¬
In other words, it has to be
matter of good timing. We can¬
on
part of that program there
should be internationalization of
not
tries.
national scale would disappear.
a
will
government in their
our
As
a
time—must
this
so
In
with
without
or
(Continued from
confuse
Nations
United
Thursday, July 3, 1947
either
—
universal
dis¬
our
thoughts. But the very
factors that I have outlined
same
to
you
as
existing in some towns
can
become
the in
Eastern
Pennsylvania
exist
averting another world here in
Boston, New York, Cleve¬
tragedy. We must press, with all land,
Chicago, Los Angeles, St.
the power at our command, for
Paul and other cities
throughout
the rapid setting up of a world the
country. Yes, feeling the eco¬
police force to be used at the di¬ nomic pulse or
looking at one in¬
rection of a functioning United dex
such as national income will
Nations security council. We must not
help us to solve our problems
demand
the
elimination
of the in the
office building industry.
It
veto, and at once. We must risk is not that
simple, so we must
our
fate in the hands of other search
further
and
dig a little
people of the world. It seems a deeper to see where we stand now
small
risk, compared with the and where we
may be going in the
greater one of war.
future.
armament
If
Soviet
the
Union
continues
A
to stall for time, and to fight the
elimination
of the
universal
genuine
disarmament,
with full dispatch
should seek
we
veto, and real
to make the United Nations func¬
tion—preferably with Russia—but
without her, if necessary. Am or¬
ganization for world peace with¬
out
Russia
merely would give
practical recognition to conditions
as they exist today.
It would be
no
insurance
against war.
Al¬
though it would be better than
we
have.
now
This
United
Na¬
tions—without Russia—and with¬
out universal disarmament—could
mobilize its world
conditions
cide
would
be
would
within
result
a
the
They would
by naval
union
Western
billions
save
By
economies
burdens
European
instead
fresh
raise
shar¬
of
,
could be financed
covery
on
member
alone.
staggering
the
armament
to
it
permit huge economies
nations.
the
which
used.» Such
armaments
ing
police, and de¬
under
billions
re¬
out
of
of
having
by
taxa¬
Leveling-Off Coming
There
to
seems
be
little
going to be some¬
leveling off in produc¬
tion and prices in the not too dis¬
a
tant future.
is
In
fact, that
occuring though we
now
process
(c)
foot.
The same question at $3.00
square foot.
■*-
a
square
(d)
a
The
(e)
question at $2.00
same
to $2.50 a square
The
(f)
$2.00
a
foot.
question at below
same
foot.
square
With
respect to
(a)—$6.00 a
square foot. Before answering this
question it might be well to state
that
under present
construction
duced
by
$5.50
20%—a rent of from
foot to $6.00 a
foot would have to be ob¬
a
square
square
tained
to procure a fair return,
of from 6% to 7% plus de¬
say,
are not
preciation, from land and build¬
particularly aware of it as yet.
Though the economy of the nation
may climb to higher levels, say,
tion might give you an idea as to
how many square feet of office
between
less,
and 1960, neverthe¬
imbalances that I have
now
the
mentioned
in
the
cost, price, and
income relationships at the begin¬
my talk must be adjusted
before any overall gain can be
ning of
made.
laws
It is
of
strange how various
economics work
particu¬
larly during periods of high
duction and booms.
pro¬
For instance
office
buildings in the center of
many
cities, well operated and
occupied prior to the war, have
increased in value to
extent
some
because their occupancy has risen
from 90% to 100% and because
rentals
from
15%
ing.
And the
space
and, let
now
tenants
can
afford this
certainly not
square
per square foot.
down- to
the
$3.00
a
foot level, I frankly don't
think
that
Coming
American
15%
*
of
can
afford
to
than that rent even at
inflationary price level,
more
pay
today's
and I would further say
tainly
office
building
afford
more
the last to fill
than
more
business
prop¬
.
rental, and
than 7% or 8%
more
afford $4.00
can
higher than in 1942. But the
.
ques¬
will be erected be¬
us say, 1953. In
answering this list of questions, I
think we will agree that at the
$5.00 to $6.00 level not more than
2% or 3% of all office building
building
tween
30%
or
to this
answer
to
are
erties on the "edge" of central
borrowing.
Two conflicting ideologies must business areas, that were selling
learn to live together—even as from 20% to 40%, say, of their
two strong, personalities. Western assessed
value, now V enjoy full
civilization with its freedom, its occupancy at comparatively high
competition and rewards is (col¬ rentals? whereas -they formerly
Were practically vacant and could
liding with a doctrine of expand¬
not be rented at any price.
In
ing oppression — that refuses to
recognize any reason but force— looking to the future, it would in¬
in which the citizen is the servant deed be well to remember that, in
of the state.
The real test is be¬ general, the buildings that were
tion
The same question at $5.00
foot.
The same question at $4.00
square
costs—even if they were to be re¬
doubt
but that there is
thing of
(b)
a
afford to
foot as rent
can
the next 10 years?
over
—
of
means
9)
page
building occupants
pay $6.00 a square
from
80%
to
that cer¬
85% of all
;
cannot
,
occupants
than $2.50 per square
foot.
Many of you here are realtors, mortgage bankers, life insur¬
with
I
Will not embarrass you and ask
you to raise your hand and say if
your company is able to pay more
ance
officials,
company
or
building and loan associations.
than
$3.00
»
•
*
;
foot for space, y
I feel that 90% of you would say
no.
But don't forget this—that y
a square
up will be the first
most of you fellows are in the •
to empty—they are marginal, or
liberty, a
upper brackets and can afford to
better than marginal in character
higher : standard ' of * * living -1 and
pay more than the average Ameri- y
greater-prestige for the individ¬ only during periods of high pros¬ can businessman; It is only the y
during other times large corporations to which rent is
ual. ;*I believe we know the an¬ perity,'but
they are definitely sub-marginal. a: comparatively unimportant item, •swer.
Yes, and it is a strange commen¬ and many of them are extremely
tary that "optimism even more reluctant to commit themselves
fore
A
us.
which
test
offer
can
to
determine
more
First California Co. i f
Announces Promotions
SAN ; FRANCISCO, 1 CALIF.
...
H.
—
T.
Birr, Jr.,- President of *The
under¬
writing and investment securities
First California Company,
MELTING
SCRAP
refined
at
a
LEAD
from discarded
telephone cable.
Western Electric plant for
reuse
as
It is smelted and
cable sheathing.
new
firm with 20 offices in California
^
Nevada, has announced the
following promotions:
A. M. Bleiler, Manager of the
company's Oakland division, has
President.
Director and Vice-
a
Mr.
is
Bleiler
widely
known in the investment banking
field throughout the West.
Parker Adkisson and Dwight C.
Baum
have
been
promoted
to
Assistant
Vice
Adkisson is
S Ti e salvaging of worn-out
J equipment has always been im¬
portant in the telephone busi¬
ness.
It's more important than
I ever
i
'
right
now.
■'
.
For it isn't
just
come
out
means
whp may have been waiting for
long time.
salvaging is more than salvag¬
ing these days.
It's
the voice
hurry-call
Every bit of recovered material
helps to relieve shortages and en¬
ables
4
us
to
build
more
of the
telephone equipment that is
urgently needed.
with
of
a
friend.
A
to the doctor. A visit
someone
in
so
Baum,
specialist
a
management
attached to
and
un¬
com¬
Mr.
industrial
in
investments, is
First California's Los
Birr
also
announced
Colonel Jack R. Naylor,
ness
in
geles,
New
has
York
joined
SYSTEM
that
formerly
(Special
to
The
his
Financial
N.
has
Los
An¬
company's
A
;•*, I
p
Chronicle;
C.—David
become
A
ts*.
r
t
-
J
*
"
M.
connected
Arnold, Inc., In¬
Building v.'-.;,
surance
ft * «
too
yes,
many
5
many,
old
boom
time
income
i
;
*
i
s a 42 rAr^n v*- *
.*
»
h
t/f
for
capitalized in
perpetuity. For that type of build¬
ing, gentlemen, the day of reckon¬
ing is not far distant.
long period of time at rentals
$3.00 a square foot.
;
y
.
a
over
^office
•
problem confront^ *
office buildings today is the
The greatest
ing
inability-—or is it an unwillingness
—of
the
rent
which
business
the
construction
will
man
to
pay
*
a
justify not only
of
new
office '1'
but which will insure
the financial stability of the pres¬
buildings,
Question of Ability to Pay
Now that I have mentioned the
background of the office building
picture and have attempted to
draw
a
sketchy picture of the
background of the general eco¬
nomic
I would like to dis¬
scene.
with you for a few moments
cuss
some
of
the
specific
more
tions and factors that
a
ques¬
must pay
we
great deal of attention to if
are
going to have
whether
trend
the
will
be
idea
any
rental
to
down¬
or
ent structures.
Strange as it may
gentlemen, the entire na¬
seem,
tion day is damned by many
false
false social
affecting the en¬
tire field of real estate.
The pub¬
lic's demands are indeed greater
than can be provided for either
in the way of a. construction, a
rental, or an investment dollar.
standards, and
values which
we
value
and
-
upward
as
Take
many
are
housing for instance.
<
:
(1 In
1914, 22% of all consumer income
used
for
rent
and
imputed
the rental value of
occupied space.; : By 1942,
this had dropped to 11%.'But to- y
day, gentlemen—today, from 8 to
9% of all consumer income spent
was
rent—that is,
owner
ward
and
whether
will be need for
ing construction in
ture.
and
As
we
the very
all
not
or
new
there
office build¬
the
fu¬
near
know, the heart
life blood of office
buildings consist of rental and
But what
cupancy.
ask
ourselves
we
a
oc¬
must do is
number
of
questions with respect to "ability
Warren
4M 4
and
With Kirchofer & Arnold
with Kirchofer &
■
bought '
in-waves
runs
many,
buildings that are* little more than
"wasting assets" on the basis of a
to
RALEIGH,
BELL TELEPHONE
the
Reno office.
distant
city.
Somebody's link with everything
and
everybody, everywhere.
a
have
so
Mr.
in the investment securities busi¬
of
it. It's telephone service.
member of
a
derwriting department at the
pany's San Francisco office.
Mr.
So
Presidents.
-
Angeles office underwriting staff.
'';V
pounds
tons of lead and copper and
so many
\ or
{ zinc and steel that
,
better, quicker ser¬
vice for
everyone; It also brings
telephone service nearer to those
a
.
*
That
pessismism
because
and
been elected
ekpwne
>
than
to
pay"
period.
-
over
And
the
so,
next
I
10
year
going
am
to
this
in
goes
as
nation—only 8 or 9%—
a
rental
or
rental value
for the American Home—and this
of
course
As
the
■
includes apartments too.
Twentieth
Century Fund *
recently stated in its great work [
"America's Needs and: Resburces," -
people
:
and
•
are
buying -* automobiles
spending money for sports
clothes and vacations, and they.
-
paying less for rent and shel- *
ter than they formerly paid.
At
(though they are really variations
the same time, they are demand- :
of the same question) as follo.ws:
ing and are being educated to de- ;
(a). What proportion of office mand—by housers, public ; offi^j
ask
here
and
now
five
I
qestions
i
are
i
'
i
•*
Wallaces,
Henry
cials,
THE COMMERCIAL & FINANCIAL
Number 4603
Volume 166
and the
Wings
buildings—except
It is not in the cards for
get
them to
and better housing for
and it is not in the
for them to get more unless
money
cards
those who invest in real estate are
office
functioning at
of office buildings are
business, by and large, and
after
higher than
now,
tens of billions of dollars.
Talk about building owners pro¬
measured
profits — why, gentlemen,
joke! Their profits com¬
a
r
If the crack¬
pots really didn't have the coun¬
try believing them, it would be
silly. Unfortunately, the majority
seem to follow the "Pied Pipers"
<of unorthodox economics and pe¬
culiar
basic
to
thought
and
with
ideologies
never
a
sense
common
office^ouilding that could
be offered in the American mar¬
relationship
as
percentage between ket?"—a building which is sim¬
market value and cost of repro¬ pler in construction and charac¬
duction
in
the
office
building ter than the mammoth cellular
iota during
the last six years.
Prior to the
war,
market value was only a
fraction
of
reproduction
cost—
and
that statement is still true
reason.
one
transportation
that .have
been
built in the past and that are con^
templated for the future. It may
well
be,
gentlemen,
that we
today.
Therefore, I for one, am should think about supplying to
not optimistic enough to forecast the American business man sim¬
ple space in buildings no more
a decline in office building costs
to the extent where the construc¬ than eight to 10 stories in height,
office buildings
tion of many new
in' Which
brave new world.
If we are, all well and good. But
we
are
going to have to think
told, to
a
about the factors that I have men¬
In
tioned and many more
too, gentle¬
buildings, I am afraid that the
overall expectancies for the next
few years cannot let us anticipate
rentals much higher than those
which are now being received—
men,
that
to the same old stand
cannot
go
on
as
adjust ourselves to
that
nation
on
which
difficult task!
a
during
Secretary.
There
dollars
K.
Co.;
Harold
industry or
carefully;
L.
L.
H.
Emerson,
Russell J.
Inc.;
Co.,
Olderman, Fields, Richards &
Co.,
constitute the Board of Governors.
sign,
'
retiring
The
Walter
governors
Carleton
B.
are:
Fahey,
of
served as Presi¬
Clark & Co., who
Quigley of Quig-
dent and Jay J.
will be in it for the
you
&
Emerson
,,
a
was
R.
Byron
Wilson, Curtiss, House &
ford
hundred years ago, at
drainpipe of waste, ex¬
and
officers
The
Mitchell, C. F. Childs & Co.; Orin
E. Koeser, Blyth & Co., Inc.; Rud-
we
almost a
the begin¬
travagance and inefficiency. That, ning of a prairie trail in Wyom¬
in America, does not make sense. ing, which read: "Choose your rut
down the
Merrill, Turben &
Vice-President; Stanley M.
Eilers,
Hornblower
&
Weeks,
Treasurer; and Clarence F. Davis,
The First Cleveland Corporation,
Co.,
And that will be
/
,
as
are
Eldridge S. Warner, Hay-
den, Miller & Co., President; Wil¬
but
static,
the
of
Cleveland
of
Club
liam H. Clark,
world and a
a
not
are
rather dynamic.
have in
we
past, throwing away
each
decade, billions of
no
;-T
officers
elected
Newly
Bond
follows:
We will have to orient and
1942.
be
responsible ^themselves for sub¬
dividing an open area into offices.
We
be
Elects Officers
did business in 1929-1937, or even
elevators,
would
tenants
the
the
we are
justified.
But
to go on!
r
viewing the future of office
self-service
containing
And a decrease
of 20% in building costs will not
be sufficient to bring about new
construction.
We are all going,
will be
our
alone, of all nations, are endeav¬
oring to preserve, in some manner
or other, the essence of the system
we have come to know as capital¬
ism or free enterprise.
We are all
more aware today of our many re¬
sponsibilities than we were a dec¬
ade or two ago, but to expect that
your industry—the office building
industry—to remain unchanged is
only folly.
We cannot go back
speed vertical
creation with high
can
Cleveland Bond Club
Not
political and economic
system challenged by more than
three-quarters of the globe—we
only is
by
field has changed
in the world of 1942.
or even
"Is there a simpler, cheaper
type of
there
that
turning back.
But, gentlemen,
living in 1914 or 1935,
not
are
we
the
that
lieve
pared with last year's corporate
profits—and I know they were
abnormally high last year, but a
comparison here is worthwhile—
are a mere pittance.
And then we
hear talk throughout the country
about real estate being a prof¬
business!
should
afraid
not exist before.
has been
previously.
But here is a
point to remember! I don't be¬
carefully too—for,
I'm
Therefore, the question
undoubtedly
be
asked
upon
iteering
which it
with
supplied.
going
to be put through the
wringer every decade or so and
real estate losses run into billions
that is
year
services
choose your rut
from the trail that you enter now,
Of course, there are new prob¬
lems challenging you; problems
that were not thought of and did
has not been able to
for the type of space and the
pay
$10 billion office build¬
our
29
ing industry.
year,
they were prior to the war. They
are' going
to stay - higher, 30%,
40%
or
50% higher than they
were
curing
to be
Ex¬
boom level.
a
occasional pressed differently, American
Of course, the value
next decade.
more
less
new
an
•
there, through the
and
here
one
and more for less and less.
—more
of
construction
the
Left and Middle and Right
(29)
CHRONICLE
It is true that this trend has
is,
except
there
where
In
control.
will
trols
those
areas
commercial rent
That is what we call so¬
progress!
r
No Prospect of Declining Costs
the operating side of
the ledger, there seems little pos¬
sibility that costs will decline.
Now,
on
The
wages of help will stay at
their present levels—if they don't
higher and, as you know,
wages constitute the greatest sin¬
gle item of expense in any office
structure.
In fact, the wages of
go
some
problems
.The decentralization of our cen¬
tral
at
business areas
occurring
was
If
there
a
are
business
ever
was
that
an
overall next
needed
planning, it certainly would seem
to
types of help such as clean¬
is
sure
to exist
sic Trust Company ::
parking is going to have to
solved
before
new
office
and
be
buildings
can
Perhaps*
built.
be
the solution will come
urban communities where
buildings exist are defin¬
in large
itely going to add to the tax
bud¬
get and more taxes must be paid
because of the increased costs of
presently rendered by
municipalites.
So, even should
there be any slight decrease in
services
expenses,
it
is bound
to be more than offset by. assess¬
ments and tax rates that are go¬
ing to be much higher than they
are today.
Increased business and
I
have
Neither
conditioning.
Do
air
know that
mentioned
you
occupants of fully half of the
office buildings in this
the
REPORT OF CONDITION
At the Close of Business, June 30, 1947
'*>VT
3'
-
country are hoping to procure
conditioning for a cost of 10
cents
15
is
sure
foot
a
on
us
more.
air
or
The pres¬
with this
respect,
gentlemen, and the manufactur¬
of air conditioning equipment
ers
are
Ford
Motor
that under
Company
levelsj it would
20
years
asserted
present wage and price
take more than
of increasing
industrial
ents
country to tell us what we
to do
technological
.
$204,009,704.63
I don't
V*.'
.
•
required by law.)
.
.
•
.* • '•
•
.
.
.
.
.
.
($19,910,509.45 pledged to secure deposits
and for other purposes as
Federal Reserve Bank Stock
Other Securities
I
.
Securities
>»
*
.
*•
1,050,000.00
9,698,247.94
•
859,854.66 "
•
p
♦
Loans and Discounts
*>.'• »:;•>* :V'-
in our lending institu¬
decide that a middle
course
is
wise, if not valiant.
Anyone who puts up a modern
first-class office building in the
center of the majority of cities in
this country today, or during the
next three years, is going to be
ing
First
Mortgages
."
.-
'%
»
♦
•.t
•
49
./>
...
Accrued Income Receivable
Other Assets
.
•"
*
*7
. -
Acceptances
on
Banking Houses
"•
.
.
Customers'Liability
»
•
>
...
'
•
>
*
.
7,811,059.23 /
*•. ♦
v r
men
tions
may
t;
|
$ 510,206.541
J* 2,058,599.04
.
•
V*. •*
\
•
72,240,170,90
2,145,378.21
,
112,400.90
.
.
•
•
•
.$812,741,984.39
ought
pretend to be a seer or
512,246,362.34
:
v
*
LIABILITIES
next.
efficiency to
automobile prices down to committing financial suicide.
Where they were in 1941. Think
There are only two exceptions to
that oyer, gentlemen, with respect
this. Large corporations can erect
to youi4 own industry!
Make no their own office buildings for
mistake about it, the national and their own use, because with the
international squeeze-play today
tax
question and surpluses, the
is on capital and I am afraid that
present cost element may not be
it .will be ? miracle—yes, a miras
important to them as it is to
actef—if4 we can reverse trends the average investor. The only
qndt tendencies that have existed other instance where I see office
for almost 20.years.
Like everybuilding
construction
justified
one else, I'haye confidence in the
will
be
when
a
building
is
American,
people — great
con¬
planned and the space is rented
fidence—but our economy today for a
long term of years to finan¬
i? so complex and politics are so
cially
stable tenants from the
intermingled and entwined with
plans.
In all other cases, we
economics that the power of the
might transpose the cliche "Look
people that is applied through our before you leap" to "Sign them
democratic methods can lead us to
up before you jump."
naught but disaster unless there
There is one other thought that
and
..
.
.
.
«
.
certain
,
R.
Banks
to use the tal¬
of the best hucksters in the
very
supposed a prophet, or even a fair swami or
costs, but I see crystal-ball gazer, but there is
one point that I am not going to
little chance of this in the office
straddle though some of the lead¬
building field.
Ernest
Beech, Vice-President of the
ASSETS
\
Cash in Vaults and Due from
modern
offset higher
few days ago, Mr.
y
ESTABLISHED 1853
in the way
providing these structures with
garages in them for the conveni¬
ence
of the tenants. That is just
another element
of' added cost
because
when
you
substitute
automobile parking space for of¬
fice space in a structure, it is re¬
flected in the rent roll, particu¬
increased occupancy are
a
;
of
State, Municipal and Public
Just
■'i
Corn Exchange Bank
again before many
day has passed. Yes, the prob¬
lem of automobile transportation
gentlemen, and tax rates are go¬
ing to increase too.
The social
services demanded and required
to
Vice-
a
U. S. Government Securities
operating
Co., who served as
rapid rate prior to the war.
been
a
ing will go higher than they are larly when the element of cost is
today. Moreover, I am sure none considered.
of us are naive enough to believe
that the tax load will decrease. New Office Building Is Financial
Suicide
Assessments are going-to go up,
office
&
President.
to
is
gentlemen,
you,
ley
My
miles."
hundred
five
advice
York,
J
,
our
indeed tremendous.
arrested but the best opinions of
the con¬ outstanding economists, city plan¬
undoubtedly
remain ners and realtors is that this trend
New
such times as vacancies in¬
until
crease.
cial
is
in
because
Capital
•
•
•
•
«
.
•
•
»
.,•!*
.
•
.
•
•
•
•
$15,000,000.00
20,000,000.00
•
Surplus
•
«
.
•
Undivided Profits
Reserve for Taxes,
7,856,663.01
,..«•••••
Expenses, etc.-•
Acceptances Outstanding
.
•
.
.......
$ 42,856,663.01
•
1,759,835.99
.
.
$
•
•
819,212.39
612,819.25
206,393.14
Less: Held in Portfolio
767,512,666.14
Deposits
(Includes $5,084,374.72
U. S. Deposits)
$812,741,984.39
bring
;
.
knowledge and ed¬
I shall give to you. Office build¬
ucation
shown on the part of
those who are the leaders.
The ings in the past have not been a
paying venture except during pe¬
very
same factors that are sti¬
riods of great financial prosper¬
fling and strangling the construc¬
tion of new housing will prevent ity when our economy has been
is
a
BOARD OF
DIRECTORS
HERBERT J. STURSBFRG
RALPH PETERS, JR.
ROBERT A. DRYSDALE
Treasurer, Livingston
President
Senior Partner
JOHN H. PHIPPS
DUNHAM B. SHERER
Broad¬
casting Corp., Tallahassee, Fla.
President, Capital City
Chairman
-'..v*-
EDMUND Q. TROWBRIDGE
C. WALTER NICHOLS
Retired
E. MYRON BULL
BRUNSON S. McCUTCIIEN
Consulting Engineer
SIDNEY A. KIRKMAN
Retired
Ingersoli-Rand
Company
«
JAMES A/FULTON
WILLIAM C. HOLLOW AY
Chairman, IE. R. Grace &
HENRY A. PATTEN
Vice President
President, Home Life Insur¬
ance
Company
Company
Safe Deposit Company operates vaults in
branches located throughout the City of New York.
The Corn Exchange
56 of the 74
greater
•
President, A. H. Bull & Co.%
Corporation
GEORGE DOUBLEDAY
Chairman,
JOHN R. McWILLIAM
Executive Vice President
Inc.
Chairman, Nichols Engineer¬
ing & Research
Worsted
Mills, Inc.
Drysdale Sc Company
United States Savings Bonds are on
Member Federal Deposit
sale at all offices.
Insurance Corporation.
:
.h
"
30
pation
The Technical
(Continued from first page)
trends
after
extended
accumulation.
rallies and declines subsequent to
the October 1946 lows of the In¬
mainder
dustrial
Viewpoint
Most
the
now
present
5%
to 8%
So,
we
Others
into
1946
213.36,
uptrend. And
ask, is it a BULL
UPTREND, or it is a
an
will
high
Call
it
what
from
points
in
Average
up¬
you
will,
to
the
and
Dow
in
the
established
is
Dow
an
is
Industrial
common
stock
could
well
1926-1927
to
the
it
important
New
Era
is
Trend in
in
advance
an
Bull Market
a
Bear Market?
a
servers—it most
investors who
with
marily
and
For
concerned
are
pri¬
preservation
capital
reasonable
and
Co.
&
PRIVATE BANKERS
which
fully
They
stocks
want
what
PHILADELPHIA
extent
to
the
in
to
be
to
sell
move.
to
and
important
to
and
to
too,
invested
Most
later—"when
much
the
know
to
sell.
likely
are
participate
when
BOSTON
certainly is.
growth, it most
certainly is not. All they want to
know is which way the market is
going, how far it is likely to go
Brown Brothers harriman
sell."
is
How
what.
of Condition, June 30, 1947
You will
ASSETS
as
$ 50,906,977.32
.
.
.
.
.
Loans and Discounts
Customers'
Liability
1946,
Acceptances
Acceptances
.
.
Reserve for
of
Expenses,
Contingencies
market
T,500,000.00
%
•
•
4
PARTNERS
•
-
1945
to
cancel
out
196 to
of
these
out
The
H. D. Pennington
for
for
6
and
of
down¬
February 1946 break
sufficient
a
proportions
additional
developing.
was
conclusion
*
Credit
and
to June
V
.
■*
Purchase
started
also
that
a
1946 advance.
On
May 14, 1946, evidence of
developing vulnerability was pil¬
ing up and I wroter
-
Sale
"The
Securities
Investment Advisory Service
ket
rally in the general mar¬
my Money-Flow In¬
carried
dices
to
where
zones
caution
is
suggested.
In terms of the Dow
Jones Averages that, rally faltered
at
Managers
Edward Abrams
'
David G. Ackerman
Charles F. Breed
Joseph R. Kenny
F. H.
Joseph C. Lucey
L. Parks Shipley
a
critical resistance level which
is additional evidence
Howard P. Maeder
Donald K. Walker
caution.
Edwin K. Merrill
John C. West
the
-
v
Gale Willard
Ernest E. Nelson
higher within the
Harry L. Wills
Merritt T. Cooke
James Hale, Jr.
John A. Knox
Arthur K. Paddock
Thomas J. McElrath
Richard Platt
William F. Ray
INDIVIDUAL
BEEN
TRADING
Laurence W. Simonds
THAN
SIX
CURRENT
Carlson, Comptroller
Arthur B.gmith, Auditor
amination
Subject to supervision and ex¬
by the Commissioner of Banks of the
Commonwealth of Massachusetts.
ISSUES
FOR
MONTHS
PRICES
HAVE
MORE
AND
THE
GENERATE
LIEVE
A
SOON
LEAD
-
BROAD
WOULD
TO
A
UP¬
I
BE¬
SELL-OFF
THAT WOULD BREAK FEBRU¬
ARY
LOWS
AND
COULD
DIP
TO THE 165-170 LEVEL BEFORE
FINDING GOOD SUPPORT BUY¬
ING.
Sell
on
strength in antici¬
study
The work goes,
been very
has
tio
occasion
lower
mate
meeting investment
*
shows,.dhat
now
on
in the
than
at
the
of
point
year.
low esti¬
a
earnings of these stocks
for 1947 and
ratio
low
this
in
May of
Moreover, based upon
confirming the turn of the
trend and the
beginning of a new
uptrend.
WE NOW HAVE THE
REVERSE
OF
THE
IMPLICA¬
RECORDED
MAY
low
price-earnings
year,
the Industrial
a
for the
The
IN
AND
current
sell-off
We
go
which
into
now
to
seem
taking place.
■.
Briefs
of 1946, when the
dipped five times be¬
•;
level and had rallied
It
of l»ne in
tors who
were
decline
and
commenta¬
depending
similar
to
collapse in basic raw
prices indicated there is
mid-September of
1947—my MoneyFlow studies have been
develop¬
ing uptrends and adding to the
authority of October - November
willingness
observers
will
part
believe
a
experi¬
With
no
material
now more
of
that
those
stocks
substantially higher be¬
going
substantially
lower
go
fore
in
the
on
to
upon
that
enced after World War I.
1946 to June of
was
observers
many
26., 1946.
investment issues
present economy has
close to the highest levels
recorded in the past 20 years. This
is contrary to the expectations of
All this time
conclusions' that accumulation
our
held
zone be¬
then that I wrote
was
'
Fundamentals
on
Commodities—This group
which has been attacked
by many
as being too
high in price and out
weakness in the
on
is
.7
Basic
sharply after each of those de¬
clines, it was adding additional
implications
that
accumulation
was taking place in
investment is¬
low 170.
fundamentals
accumulation
October
sues
•
support technical
conclusions: that
.
low the 170
this
Money Flow and
(Chrysler was then around 80—
dipped to 76—rallied to date to
109.)
In
of
other technical work, I think it
adds authority to the implications
of these technical studies.
my
market had
end
Since this checks with my £precasts based on
OF
in
the
year should sell at 2C5 to 215.
JANU¬
JUNE
before
average
opinion is the last opportunity to
buy stocks around current lows
prior to a
sustained
advance."
than the 160 level.
and is tak¬
and
Exports—Our foreign trade and
especially our exports have been
holding up well in excess of best
expectations. The whole world has
sharply above it on four separate
occasions. More evidence of accu¬
been clamoring for almost
every¬
thing America can produce. This
mulation and the
extraordinary high level of for¬
eign demand continues and shows
ing place. During April, May and
June
have again witnessed the
we
market
dipping below the
rallying quickly
and
area
170
beginning of an
Uptrend move¬
ment of proportions.
extended
Basic
While the
sign of nearby let down.
no
rallied Oc¬
seems
completed
bases
accumulation
national
and
started uptrends. Ral¬
lies and declines subsequent to the
May
lows
while
are
now
additional
stocks
VERSE
OF
THE
TOP
complete
MAY
deed
situation
stands
ion
uptrends, those sit¬
dipped into new
low ground during
April, May and
June
are
at
levels where they
have completed or nearly com¬
pleted the full extent of downside
trend
objectives
implied
from
their 1946 distribution tops.
They
will
back
and
fill
developing
bases of accumulation
as
other is¬
too
for
pay
in the history of
The
number
of
for
the
received.
highest wages
large back¬
With
difficult to justify an opin¬
this condition will alter
that
in nearby time.
Full em¬
ployment at high real wages can¬
not bring about either ai recession
or a depression.
started their
which
Take home
our
much
now—
those issues which have
.not based
out
or
which have not as yet
uations
This 5
outlook
logs of orders on the books of all
types of manufacturers, it is in¬
AND
The Current Position
the
—
highest
working
ever
JUNE OF 1946.
As
will
country.
people gainfully employed is at
the highest
level and they are
OCCURRED
IN
the
our
THIS IS THE RE¬
WHAT
production.
Employment
is
their accumulation bases and start
uptrends.
which
larger proportion of
would
support the
higher stock prices.
developing
new bases in
many issues which
moved to new lows
during the
February to May decline. Mean¬
new
WPA program
still
use a
issues
Mat¬
fact pur State Department
to be planning a world¬
ter of
averages
tober to February and declined
wide
February to May, many individual-
'
Retail
Trade
Stimulated by
high farm income and new
high factory employment at high
wages the dollar volume of retail
record
trade is at a record high and in¬
creasing. We must also remember
the
fact
our
consumers
that
for five
were
long
years
denied many
of the
things now at long last be¬
sues and the market move
higher ginning to become available. This
in their uptrends.
Many issues certainly does not indicate a col¬
have been trading around current
lapse of purchasing power fol¬
levels for more than six months.
lowed by its resultant price war.
This is indeed
a
BULLISH sit¬
uation and marks the final
phase
Accumulation, the final period
of preparation for an exceptional
of
advance.
AROUND
FAILURE OF THE MARKET TO
SWING
Private Bankers and
subject to examination and regulation by the
Superintendent of Banks of the State of New
York and by the Department of
Banking of the Commonwealth of Pennsylvania.
as
to
double that of any suggested
in the past many weeks.
MANY
Arthur R. Rovve
George E. Paul, Treasurer
week
—or
Herbert Muhlert
William C. Horn
Licensed
next
days, I would strongly favor a
cash position of from 25% to 50%
Arthur L. Nash
William A. Hess
substantially
10
Assistant Managers
Robert H. Chamberlin
Charles S.
are
M. Dutton Morehouse
Kingsbury, Jr.
calling for
Unless both the Rail and
Industrials
An¬
cations
AT
top was
building up was further supported
by the fact that quality invest¬
ment type
issues did not fully
participate in the November 1945
Domestic
of
and
had
quality selling to clinch
conclusion that a trend top
The
Accounts-Loans-Acceptances
Brokers
Limited Partner-~\\. A. Harriman
of
are
'A
Commercial Letters
studies
amount of
FACILITIES
Foreign Banking
Deposit
Knicht Woolley
of
trends.
13,805,283.54
Complete Facilities
Thomas McCance
E. R. Harriman
higher.
This trend reversal
year.
topped
the
Louis Curtis
while
They
against
the
before the close
uptrend
the
ber
•
Required by Law $1,600,000 U. S. Government Securities
Pledged to Secure Public Deposits.
Ray Morris
moved
out
Later, however, by late JanuaryNjf 1946 an additional num¬
$250,952,015-77
Thatcher M. Brown
flattened
the indication of the rally
162,231.36
11,805,283.54
Prescott S. Bush
would
213.
;
Stephen Y. IIord
market
Money-Flow work was not
strong enough in November and
11,257,989.45
$. 2,000,000.00
Moreau D. Brown
re¬
the
downward
recorded
As
the
studies
December
etc.
.
Capital
Surplus
across
of my
•
649,914.20
Accrued Interest,
that
market
$ 11,907,903.65
Less Held in Portfolio.
oLwhat occurred
started
2,596,940.85 $224,226,511.42
....
experiencing the
we are
Flow
$221,629,570.57
.
1945, be¬
October of
probably top out in the zone
208-212, certain of my Moneythe
.
of
wrote
LIABILITIES
.
November
56,142,925.71
*
930,405.22
,
For
will have to go
last top which began in November
of 1945.
In that month when I
$250,"952,015.77
.
accumulation.
we
currently since
verse
4,721,368.86
Other Assets.
Deposits—Demand
Deposits—Time
to
170
Mr.
one
indi¬
icle" of Dec.
160 to
zone
11,230,138.86
»
,
on
back
46,227,205.30
V7"
.
of
purpose
cause
80,792,994.50
State, Municipal and Other Public Securities
Other Marketable Securities
level
a
this
United States Government Securities
are
my
collaborator
past 20
years did the Dow Industrial Av¬
erage record a price-earnings ra¬
I
and
by
recorded
article, "Who Said Bear Mar¬
ket?", published in the "Chron¬
doubt want to know
no
why I brand the
Hand and Due from Banks.
accumulation
the
Why Accumulation?
on
new
"Stocks
1946.
ob¬
only
170
support buying.
My investment
trend studies have recorded
ARY,
Rally
some
thfe
maintained
helpful at critical times.
wrote:
Bull
a
as
or a
For
to
below
pre¬
and
and
tant of New York.
back to 1920 and
good evidence of the begin¬
ning of
TIONS
Actually,
Business Established 1818
market
Aver¬
interesting work is
thony Gaubis, Investment Consul¬
my
Money-Flow studies
moving upward sharply, I
were
be¬
a broad *new trading
range
congestion area from which an
upside break-out would develop a
blow-off inflationary move hav¬
ing the characteristics of the move
characterize
Cash
pared
friend
1946,
the
lend¬
now
Jones. Industrial
This
This
mid-September
come
ad¬
225
Industrials
in
Dow
age.
aver¬
level,
160 to 213
area
top of 1929.
Statement
Although the
with
will say, "I told you
merely a rally in a
saw
from
NEW YORK
the
When
at
Actually, it could be either. And
around
160
consider
of
Bear Market.
Bear Trend?
or
October
many
so—this
will
Bull
are
new
Others
a
indeed this entire
65
out
in
are
since
Market
the
Basic
els
breaking
re¬
BEAR MARKET RALLY?
cause
vance
now
below their
cently recorded 1946-1947 lows.
October-November 1946 base lev¬
accumulation.
I
The Background of
Accumulation
about
Uptrend. Some stocks are well
along in this uptrend from their
of
day
"Many individual issues have
already broken their February-
low established in April of 1942,
Should the market falter below
MARKET
the
ages
that
on
third Bull phase from the
—some
of
March lows.
and
stated:
not
205 to 225 before it
One of these studies
ing great support to my present
Bullish opinion is a
study of PriceEarnings Ratios of the stocks in
was
1946.
continue until the advance is well
reversal
completed
case
move
dip to new lows before bas¬
However, these few are
likely to decline more than
into the
a
greater
could
secondary stocks has entered the
early phases of an extended up¬
trend.
This uptrend is likely to
offerings sufficient to
levels
downtrend
By June 28, 1946, the
ing out.
The market now—June of 1946
—including practically all impor¬
tant issues and a vast majority of
meets
a
do not as yet confirni
it, a
decline to
165-170 Dow Indus¬
trials could
easily follow."
being recorded.
zone
re¬
important long-term buy¬
ing of investment caliber is taking
place. A few—relatively very few,
group
have
recently
reached zones where good buying
is
around
now
of
Thursday, July 3, 1947
10%."
Bull
where
are
•*
price
appreciation
that
"Ain't
Hay." Should the move establish
a high above the
1946 high some
will say—when we have • scaled
that high—that we have been in a
periods of
of
than
'
C
THE COMMERCIAL & FINANCIAL CHRONICLE
(30)
;
...
;
Statistical Support
My work primarily technical in
character is based almost
studies
wholely
of
Flowing
Money.
going into and out of
stocks individually and money go¬
ing into and out of the market
measured as a separate entity.
I
study too, those indices and fac¬
tors usually referred to by econo¬
on
Money
mists
as
statistics.
Money
and
Credit
—
Although
the government is
retiring a very
small part of its very
large debt
the amount of
money inCircula¬
tion remains
high both as to totals
and as to per
capita distribution.
Credit is available, expanding and
cheap. Veterans are soon to receive
state bonuses.
They are also like¬
ly to get federal laws making
their terminal leave pay bonds
payable on demand. These facts
all add up to an
omy not to a
a
expanding econ¬
collapse or recession.
Production—All along the
study of production shows
line;
new
postwar and
all-time highs
new
for both volume and
dollar value
selling for about 210 to 240 in the
Dow Industrial Average.
Politics—In tliis field we have
production.
Moreover, high
witnessed
a
complete
production rates are continuing recently
face
in politico-economic
for longer periods of operations about
in many fields. Raw materials of propaganda.
Remember the plan
all types are still holding back —put wages up While at the same
full capacity production in many time reduce the price of finished
of
In
industries.
fields, such
some
as
metals, coal, autos and other cap¬
ital goods yet higher production
levels are in prospect.
This will
most
certainly force the preachers
of gloom and depression to realize
their
errors.
make
And they should soon
complete about face.
The Price Level—Many econo¬
-•
a
mists
argue that prices are too
high and must come down. I be¬
lieve that with the higher levels
paid to workers we cannot expect
lower
prices for the goods we
consume.
Labor will not go back
to
therefore, we
price levels
goods produced by post¬
wages
prewar
cannot expect prewar
the
for
war
high cost labor. We must rea¬
son
from
a
price level pla¬
new
On
standard.
war
tive- basis
a
our pre¬
normal rela¬
should now
stocks
be
quered nations and
a
nomic relationships
economic
of
non
normality
We
on
sweeping alteration in the eco¬
of European
recovery
Van
sine qua
economic half-
or
even
Bowman Gum Stock
that continent.
must be in
a
very
our own
recent issue.
forced upon it by these
drives designed to make us be¬
lieve things which are untrue.
pressures
Yes, indeed the American Free
Enterprise System and the condi¬
tion of our economy is healthy
expanding*
The
greatest
peace-time production and pros¬
perity in our history is ahead of
us.
Prepare for it—BUY good
and
This is the
stocks how.
time for
An
par)
stock
common
of
Bowman
Inc., at $7,125 per share.
This offering, on behalf of cer¬
tain stockholders, represents the
Gum,
first
distribution of stock
which heretofore
privately held.
public
of the company,
has been
Bowman
Gum, Inc.,
a
Pennsyl¬
vania corporation, has been manu¬
facturing and selling chewing gum
since its organization in 1932 by
J. Warren Bowman, President of
emphatically asserted at that time that not
be unwise to assay any such role, but
that the burdens of the part would obviously be beyond
our capacity to carry.
All of this is true of Europe as it
is of the world. We pointed out at that time that most
of the countries of Europe about which definite infor¬
mation was available appeared to be buckling down to
.work, and were making at least reasonable progress
(as compared, at any rate, to that following World
War I) toward prewar performance.
we
the
Bowman
company.
brands
"Warren's Mint Cocktail"
are:
in
conventional 5-cent field and
the
"Bub" bubble gum.
Believed to be the fourth
est gum
the
larg-*
manufacturer, products of
distributed
are
company
throughout the United States. In
January of this year the company
resumed the manufacture of bub¬
which had been discon¬
of
shortages of material.
On the
basis of sales to date, the com¬
ble
Germany!
country.
underwriting group headed
by Van Alstyne, Noel & Co., on
June 27 offered 268,875 shares ($1
on
We very
v
only should
optimism and confidence
nearby
future
of our
the
in
views
healthy condi¬
to withstand the total of the
tion
expressed
31
Alstyne Noel Offers
powers are a
these subjects in these
columns in a
It was quite plain to us then,
and it is just as plain now, that much of Europe and more
goods? - Remember the forebod¬
ings
of
a
depression — reces¬ of our own citizens than one would expect to find are much
sion?
Remember too how sud¬
inclined to view this country as the economic patron of
denly the entire Washington pub¬ the
world, destined somehow to see that all other peoples,
licity machine made an about
face when the President stated'— particularly those who are likely to go to war or to adopt
"no recession ~6r depression now internal economic or political systems not to our liking, do
indicated."
Surely the economy not suffer the consequences of their own folly.
common
much higher than
teau
(31)
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
Volume 166
gum
tinued during the war because
The
exception was of course Germany, where destruc¬
immensely greater this time, and where the three
pany has
regained its prerwar
conquerors are still pursuing policies which make return
position as a leading producer of
to normality utterly impossible.
Fully as cogent in the this item.
Net income
after all charges
existing circumstances is the fact that Germany was, in a
(Continued from first page)
/
sense, the prewar economic core of Europe.
What is taking and taxes for 1946 amounted to
see "circulating behind" the statement, "a conception of^ a
$870,271, or $1.30 per share of
place behind the iron curtain, no one really knows—except common stock. For the first quar¬
great cooperation between Europe and the wonderful and that normal communications and v normal interchanges of ter of 1947 ended March 31, net
I powerful Western Hemisphere." :
goods and services are not taking place.
The over-all income was $490,038 after all
In Russia the first reaction appears to be that
European economic picture is accordingly much worse than charges and provision for income
"General Marshall's plan is nothing more than an extenthere is any need for it to be, and, moreover, the hope that tax, which is equivalent to $0.73
per share.
it can return to anything approaching normality under
i
sion of President Truman's plan for political pressure
:
with dollars and a program for interference in the
existing conditions of division, iron curtains, complete comNow Proprietorship
internal affairs of other states," although after Mr. Molpartmentation, and antagonisms is slight indeed. Economi¬
tion
As We See It
I
of the official organs of
apparently more friendly spirit
expressed the view that "serious responsibility lies before the three Foreign Ministers in their conference on
otov decided to go
the Moscow
-
was
to Paris one
regime in
an
V Friday in Paris."
ALLENTOWN, PA.—C. Vaughn
cally speaking, sending aid to the Continent under these
conditions, however kindhearted
almost like
invitation
largesse.
It
was
to
•
not long before stories^began to circu¬
Forecasts in several quarters,
INCORPORATED
NEW YORK
GEORGE WHITNEY
HENRY C. ALEXANDER
Vice-President
Vice-President
including semi-official
Investment
BERNARD
in disagreement with what the Secretary of
Meanwhile, the President is reported reli¬
State had said.
ably to be "in agreement with both the Secretary of State
and the Secretary of the Treasury."
Precisely what inter¬
h
.
t
I
,
the
he
There are, however, certain
Secretary of State had
spoke these
versity.
■
Factors
v-
:'f
things which
very
'
we
we
had hoped
•
still entertain the hope, that
he intended to remind the great powers of Europe—and
a
somewhat belated recognition of
own
government—that drastic changes
|
possibly indicating
|
the truth by his
ill the attitude of the victorious powers
1200,000.00
of Morgan
Grenfell $
Morgan 8p Cie.
JOHN L. COLLYER
President The B. F. Goodrich
x'
"
(including Shares
Co.
Limited and
-139,328 J95.23
Purchased
Accrued Interest, Accounts
.
of Credit and Acceptances
II. P. DAVISON
Less
$
toward the
con-,
3,000,00020
8,770,977.40
338,800.00
Prepayments
CHARLES D. DICKEY
Vice-President
RALPH W.
2,563,345.15
Receivable, etc..
Banking House
Liability of Customers on Letters
Company
Vice-President
■
13,551280.35
Incorporated)..............
>
8,432,177.40
$701,757,336.94
GALLAGHER
N. D. JAY
LIABILITIES
Vice-Chairman Morgan & Cic.
Incorporated
THOMAS S. LAM ONT
Vice-President
G US TA V METZMAN
President New York Central
Railroad Company
W. A. MITCHELL
$602,881,079.67
Deposits
27,798,318.09
$630,679,397.76
Payable, Reserve for Taxes, etc..,
3,807,978.77
Official Checks Outstanding
Accounts
Acceptances Outstanding
Credit Issued
Vice-President
and Letters of
8,770,977.40
20,000,000.00
20,000,000.00
Capital.
Surplus
-7. Vice-President
Undivided Profits
18,498,983.01
....
ALFRED P. SLOAN, JR.
definitely in mind when
*
of the Federal Reserve Bank..........
JUNIUS S. MORGAN
?
well publicized words at Harvard Uni¬
now
We had hoped, and
|
Vital
?/, 12,692,92722
Loans and Bills
CHARLES S. CHEST ON
358,793,824.29
». •.»
Municipal Bonds and. Notes.
Incorporated
.
Some
CARTER
$162,195$3730
*....
Securities.>
Other Bonds and Securities
President Morgan & Cie.
pretation is to be placed upon all this, we shall have to
leave the redder to decide for himself.
Stock
Corporation
S.
Hand and Due from Banks. ....,
on
State and
President State Street
in Washington, expressing the; belief that
Cash
United States Government
PAUL C. CABOT
-
way
f
l.C.R. A THIN
enormous
any
-
Vice-President
length came to pass last week that the Secretary
of the Treasury felt it necessary to tell the public that the
"Marshall Plan," as whatever it is that is in the mind of
the Secretary of State has now been labeled, should not be
construed as an offer of American help, and to add a few
hours later that his comment was not to be interpreted as
ASSETS
ARTHUR M. ANDERSON
It at
in
Condensed Statement of Condition June 30, 1947
President
year
•
■
R. C. LEFFING WELL
fabulous
export volume of the first half of this
would not continue much longer, and that the
effect upon our economy would be marked, served fur¬
ther to strengthen the impression that the planners and
managers in Washington were definitely developing a
program of profligate giving or "lending^" *
J
proprietor
Co., 514 Ham¬
Chairman Executive Committee
supply, and the effect such generosity
our economic welfare, .inevitably added
might have upon
strength to these rumors of planned or projected
giving in the years immediately ahead.
the
sole
J. P. MORGAN & CO.
..
Chairman
V
Europe amounting to some $20 billion dur¬
ing the next half-decade.
Steps taken meanwhile by the
President to ascertain the amount of suelft "assistance" we
outgivings
now
ilton Street.
rat hole.
a
is
of C. V. Converse &
THOMAS IV. LAMOST
further "aid" to
reason
be, is
DIRECTORS
file bids for American
Europe to
late—whether, in any way inspired or not? we do not pro¬
fess to know—that the authorities at Washington envisaged
could with
wealth down
may
•'*''
In many quarters, both at home and abroad, the words
of the Secretary of State were interpreted as hardly less
an
our
it
.
Invitation to Apply?
•
than
pouring
or generous
Converse
$701,757,336.94
Chairman General Motors
Corporation
E.
TAP?AN STANNA RD
President Kennecott
Copper Corporation
JAMES L. THOMSON
Chairman Finance
Committee Hartford Fire
Insurance Company
JOHN S. ZINSSER
President Sharp & Dohme
Inc.
United States Government securities carried at $17,996,491.73 in the above
statement are pledged to qualify for fiduciary powers, to secure
public monies as required by law, and for other purposes.
Member Federal Reserve System
Member Federal Deposit Insurance
Corporation
32
THE COMMERCIAL & FINANCIAL CHRONICLE
(32)
I
tion
The Problem of
Planning
can
Thursday, July 3, 1947
only give
you
something
to think about. We will continue
to be a capitalistic
nation, not so
much because we like
capitalism,
(Continued from page 3)
represents
the
internal
factors
billion represented about all of the
business done in the nation for
lem.
about which he will always know
the
of
capitalists.
We went
they represent the first results of
into the first World War with a
mass psychology and the primary
few hundred thousand investors
consequences of mass psychology
—and if your reasoning is from and came out of it with two mil¬
lion investors. We went into the
primary consequence to secondary
than anyone else, regarding
which he needs no advice from
more
the
reporting member banks
those
close to
there
him
emotions.
tors
also
too close to his
and
The
other
set
fac¬
of
the external factors hav¬
are
ing
but
to
do
business
with
as
the
outlook
for
whole, and if they
a
extensive
are
gregate
be
to
enough in the ag¬
is extremely difficult
personal about them.
In
it
resent between 60 and 70%
the
rep¬
of all
banking business done, and in
reporting
is
the
member
for
record
to
banks
1946 of
expressed
himself quite
definitely and conclusively.
It would
the
it is a perfectly
assumption that there
currency,
consummated
was
in
the
Public, because John
in that reasoning has al¬
ready
non-reporting banks and the
of $28 billion of circu¬
lating
United
figures
that
quences
and there
are
any
number of those
who^reach their conclusions
re¬
.else.
one
The
Federal
eam
That source is the report
published by the Federal Reserve
loss of that war.
who
seen.
This
member
System
into
that
to
System
the
of
report
be
can
keeping methods and without
re¬
banks
comprising the course to economic theory. I am
literally reaches an economist and not too proud
highways, the byways of it. Economists, generally speakhedges and includes every in, are -altogether too prone to
it
and
the
and the
completed transaction by every bog down in their own vocabu¬
buyer and seller of goods or serv¬ laries.
They seldom understand
ices throughout the entire nation each other and, on occasion, I
—or
at
least
stant:al
it
includes
so
sub-
suspect that they don't understand
As an economist,
percentage of those themselves.
transactions that it might as well may be pardoned
perhaps if
a
represent the whole.
The
Money Factor
'
There is almost nothing we do
state that I would not give a
for any economist who did
have
were
I
I
dime
not
There
those
were
us that because these
lesser evils they were
good, but they were never good
except by comparison, and now
have escaped
we
the
conse¬
greatest
that
of
all
of
evils, we must resign ourselves to
suffering the consequences of a
whole
which is
nomical debt and
expanded
from
lesser evils,
those
host of
the greatest of
astro¬
tremendously
a
waste,
is the
money;
to
give
away
or
we
lose
always money is involved
and, for the most part, this money
represents checks drawn against
deposits in the banking system,
monetization
all
which
of
are
reported
faith¬
simple fact that I have yet
an
expert in mass psy¬
This
is not 'new,
when credit
process
always
fully and accurately every week which someone has defined as the
by each bank to its regional Fed¬ science of deliberate self-bewil¬
eral
Reserve
Bank
and
System
as
by
bank'
to
Even
though the transactions
the
a
that
whole.
we
carry forward are with
circulating
currency, and not with checks, it
derment.
;
our
before
and his propensity for
using big
words, which do not mean the
stance to draw that
currency from same thing to all
economists, his
the bank, and allowance is
easily problem as an adjunct of planning
required
a
check
in
the
first
in¬
made for the turnover or circula¬
tion of the currency. As an illus¬
tration of the fact that
aggregates
built up by the addition of com¬
ponents are always far below the
aggregates
In
the
immediately available
banking figures,
I
would
like to cite that the
gross business
done by over a thousand of
the
country's leading
1946
was
lion,
If
dollar
a
something
we assume
over $53 bil¬
that for every
they took in, they paid out
dollar,
becomes
then
corporations in
that
so
$106
assume
the
billion
that
this
is
very real
and
is
about which he has
little.
The
nature
compels him to
reason
unpredictable factor in the
world, • a fellow called John Q.
Public,, who may or may not do
the
thing the economist
stances
or
because,
circumstance.
And this points
fanned out in the economy to the
point where it multiplied itself
tage which
by five and
for
became $530
billion
assumes
he will do either because he did
it before under similar circum¬
science, he should
aggregate
cause
most
if
we
from
to consequence, and in the middle
of that reasoning there sits the
aggregate
and
something
done' very
of his science
bank
in
as
con¬
do it under any
r
up
accrues to
figures
all
services
stantiaily
total
have
sub-i
become
greater than the sum
goods and services
are able to produce, it
the
of
which
we
has been
the
user
of
material
the
analysis of the external
and If we add a
couple of hundred factors, without which the planner
billon to that aggregate, for fear is
seriously handicapped.
The
that we might have overlooked
bank
something, it might be reasonable
to
assume
that about $725 to $750
figures represent completed
transactions. They
to
the
mass
the answer
psychologist's prob¬
are
vestors—and
to
need
be
that
story doesn't
Now, capital¬
unless capital
retold.
ism
will not work
is at work and capital will not work
for starvation
wages
any
more
than will the
bricklayer. Nor will
it work unless it is presented with
a valid and
satisfactory reason for
working.
That
is
why we have
thing as a bond business,
why there
are
securities
ex¬
changes and why the finance in¬
such
dustry
has
become
middleman
the
industry
it is the aggregates of capital
and
by
owned
little
tremendous
owned
few.
into
people,
possible to collapse that
by the very rich and very
That day has also passed
history and taxation took
of it.
There
be
We would
worth
the borrower enjoys
distinction
the
and
the
privilege
if
money
it
is
unlike any pre¬
so,
period in our history, today's
purchasing power, which
excess
been
of
estimated
capital,
^
rate.
something
as
which
Once
of
is
the
interest
,
it
we^get
minds that
a
today's price
in
be fixed
fixed
in
our
large part, if not all,
rise is going
our
economy
nently and that
we
will
to
perma¬
never
go
back to 40-cent wheat and 5-cent
back
hours
the
any
to
than
more
the low
of
problem
we
wages
will go
long
and
granfathers'
our
days,
organizing
of
our¬
selves and
not have $28 billion
it
think
would
which
must
be
by every single planner
constituting the major
difference between the conditions
under which he
or
his forefathers
have planned in days
may
gone
is
$9 billion and, incidentally
the next largest denomination is
the $10 bill—and before we
get
over
to
the
into
is
It
rates
tag which affects
securities
fre¬
become
speculative
if
they
are
not
pretty .carefully
watched and if we do not apply
the admonition of the toothpaste
and
"see
the
den¬
year" with
our
port¬
you
of money
power
to
assumed
to
the
of
sure
be
a
con¬
reasonable-
a
excess
already
power
put prices
purchasing
purchasing
is bound
and the future
created
up
of money
is
something which is
likely to be less, rather than more*
worth
his
promises
power
as
to
pay
in
money
the
thought of in terms
a premium*
and that is why the interest rate
will rise. When, no one can tell*
discount and not
a
The process
It
has
while
under the
of
probably will be slow*
already
started.
It
important
is
an
thing
.
to
-
-
Department
rehabilitation and education. Some
our
earn
health, social security, vocational
by which, as a country, we
livelihood.
They are
means
service agencies dealing with the
aspects of general social welfare
study and promotion of farming,
have been of Federal
of foreign and domestic trade,
activity
commerce
of
states,
the
among
conditions
They engage to
oi
standards.
and
large extent in
a
statistical
in
and
regularly
publicize and disseminate analyt¬
they
ical and informational material.
The proposed department ob¬
viously falls into this latter classi¬
fication
tion
as
service
a
segments of
life
tural
and
promo¬
would do for
social and cul¬
It
agency.
our
three
last
the
what
departments do in the interests of
agriculture, business and labor. It
define, assume and promote
as a primary responsibility of the
National Government, the protec¬
tion
and
development
of
the
health, welfare and education of
the people.." That is the essence
of what creating such a depart¬
would
ment would mean.
our
teeth.
do have
a
est
interest rate, and in that-
the
connec¬
of
amount
Presidential
under
the States.
the
are
Constitu¬
reserved to
This cannot be
emphasized.
over¬
The provision of the
and
protection of these
social and cultural
life—education, health and wel¬
fare—have
been and today
are
still
essentially the function of
aspects of
our
State and local
a
other
real need
States
for
moral
on
the part of some
Federal
sunport
On
said to
governments.
hand, there is
in
financial
these
and
fields:
financial, because of assumed fis¬
cal
inadequacy; moral,
from
the
rais¬
-
for myriad "social" purposes.
Al¬
recommendation
or, as in the case of education, in
the form of bills now before the
Congress.
In other words, there is not only
the question of determining the
justice and propriety of perma¬
nent, basic, Federal responsibility
in
this
area
of government func¬
tion; there is also
question
a
of
the need for it—heed not only for
the continuance and expansion of
already
existing Federal grants
services, but need for their
ministration
and still
in¬
and
money
for education are still in the state
of
responsibility?; All powers not
specifically granted to the Federal
were
and
relationships, is
comparatively new, having beert
given emergency impetus during
the great depression.
Other as¬
pects, such as health and disabil¬
ity insurance and grants-in-aid
and
Government
concern
long
a
tergovernmental
Now
the
question is, do we
acknowledge such activity in this
particular area as a basic Federal
elevation to
where
the
changed to
departmental status
a
tenor
will
of
their
be
ad¬
necessarily
of Federal author¬
one
ity, initiation and action.
It is doubtful, but of course
may
that the States are not only
willing but desirous of relief from:
be
their
burdens
crease
by
in Federal
way of an in¬
jurisdiction.
If
the associations and agencies tes¬
tifying in favor of a new "cabinet,
department" truly represent the
opinion of all the people as well'
as
the professionals in the respec¬
tive fields, then there will be only
one
answer:
department,
we
will have
a
new-
On the other hand,
if the people of
the several States?
prefer to retain their sovereignty
those
governmental
let their voice
be
functions;
heard
protest and there will be
no
in
new
department.
to
The real issue, therefore, seems
be as simple, but as funda¬
ready there exists a large, com¬
mental,
prehensive
States
as
whether
choose
to
or
not
defend
the
their
and
well-integrated
of Federal offices and
identity—in the words of Jeffer¬
agencies providing money grants,
service
and
supervision
to the
States* in the "fields of-public
the most competent administrators
for our domestic concerns.".
"
net
deep
with the outlook for
for
time, public
health and vocation rehabilitation^
for example.
Public assistance*
which involves by far the great¬
then
However,
be
for avail¬
the fu¬
if
conclusion, but as it becomes in¬
creasingly apparent that the pres¬
in
concern
easy to say that interest
low because there is so-
purchasing
could
Already Uncle Sam has put his
seven
league - booted foot into
these fields by fostering and in¬
creasing Federal aid to the States
as
fig¬
are
stant, that would be
ing and unifying standards.
investment
a
down
are
and,
ture
that
well
we
aggregate
much money
competing
able investments
point of view of developing,
as
bill
small
ures.
the price of all speculative securi¬
ties and I don't need to tell you
tist twice
$1,000
pretty
(Continued from page 9)
be
manufacturer
currency as a total*
Today the total of $20 bills alone
A New Cabinet
Your investment portfolios are
not, for the most part, affected by
shifts in the price tag on the own¬
ership of American business, but
folios
In 192$
billion worth
about $4V2
circulating
quite a
only of
think about.
the
•
that price
had
we
of
mattress or
by.
it is
chap has to be
wealthy man to think
$1,000 bills as big bills.
instead
benefits
as
a
extremely
important
today
to
and
a
big bill to a little
$100 bill is a big bill
a
medium sized fellow
in the bank
tion
realized
is
a
to deposit his money
planning for the future
simplified, at least to
that extent, and that is the most
becomes
fact
only
of
circulating currency to¬
day if interest rates were high
enough so that the little fellow
and
vious
destiny of
of
studies;
has
He is the
future will be
no
the world, if not the universe.
scientific
demanded and
care
bill
fellow;
that it will control the
research,
printing
$20
recognized
some¬
of
less
longer any
danger that any individual's for¬
tune will mount to such heights
can
In this particu¬
times the lender.
case
the
capital
not
aggregates of
collapsing the borrower and
unique
greatest
world
has ever known, but back of it all
there is the working of capital—
labor
lar
the
shelf.
a
need fcfrg bills, which, bulk
in a limited
space.
Now, a
you
a
money by calling the loans which
created
it—and
in the process
quently
the advan¬
source
a
a few mil¬
lion investors and we came out of
it with a great many million in¬
but
has
where
claims against goods
money
cotton
The Economist in Planning
But, .entirely aside from the
idiosyncracies of the economist
become
second World War with
been monetized to the point
chology who does not proceed in
the first few paragraphs of any
discussion in which he participates
to get knee-deep in metaphysics,
have
we
on
credit
of
good
meet
because
testcup
a
supply, resulting
money
the
an
sociologist looking between $100 and
$150 billion, is
that is not done with
over
his shoulder, and I would
money. We
non-collapsible, is permanent and
buy and we sell; we borrow and swap them both for an expert in will continue to exert a definite
mass
we lend; we invest and we
psychology, any day.
But upward
specu¬
pressure against all prices
late; we save and we hoard; we the only trouble with all of that
-including, if you like, the wages
a
but
in the creation of that debt.
and
condition
System, summarizing the weekly analyzed by old fashioned book¬
reports
,told
evils
report is the condition report, the
balance sheet and the earnings
ever
particular
reasoning there have
emerged recently just a few facts
and factors that are so important
and so pertinent that they should
be cited to any group which has
the responsibility of planning.
The first and most important of
these has to do with the changed
aspect of our economy as a result
of having won a war and having
indulged in a great many lesser
evils in order to escape the con¬
sequences of the greatest of all
evils, which would have been the
one
used.
this
of
of
type
Reserve
statment, if you like, of the bank¬
component
to
another,
I
have ing system. Turned inside out, it
never seen such an agregate which
becomes the condition report, the
comes within
gunshot of the ag¬ balance sheet and the earnings
gregates which are easily avail¬ statement of the customers of the
able from an entirely different bank, who are public and who are,
source, and a source which is well if you wish to think of them in
known to most of us, although it such termsr the United States of
has not been used by many of us America, Inc., the biggest coop¬
as much
as it should have
been erative enterprise the world has
garding aggregates by adding
of
and
out
but
ductive
reasoning,
usefulness
the
of
bank-figure
analysis ad infinitum and ad naus¬
■'
deductive
possible to expand
be
thesis
bank
iact, it might be said that the more States for the year 1946 about
extensive they are, the more im¬ $1 Vz trillion of business—or more
than twice as much business as
personal they become.
And the reason why both sets was represented by what appeared
of factors
are
important should to be a pretty wild and wooly
be relatively obvious. We learned extension of the gross receipts of
in elementary physics something over a thousand of the country's
about the components of forces largest corporations.
and, while it is entirely possible
However, and in order to make
for any business to constitute the the banking figures useful to the
exception to the rule and some¬ planner, they must be translated
times for a fairly protracted pe¬ into the figures of
business, and
riod, it is safer to proceed on the not the figures of the banks them¬
assumption that if all business is selves, as they are in the original
This translation is the
improving our own business will report.
do better than would be the case simplest process in the world, and
if all business were deteriorating. for the simplest of all reasons. In a
In the search for source material bank there is no deposit liability
regarding the aggregate external which is not the asset of someone
factors, again we are confronted else, nor is there any earning asset
with the difference between in¬ which is not the liability of some¬
and
not subjected
the unpredict¬
of
John
Public
turnover
reasonable
hazards
the
able
that, taking into consideration
the
also the answer to
problem, because
consequence you are
$1 trillion of checks drawn,
over
so
are
nation
1946, but the banking
figures disclose a very different
story. It has been estimated that
year
regarding
which he can never be completely
impersonal or objective in his
thinking because they are too
else
anyone
They
economist's
the
in
principal hoarder today and the
banking figures provide an inter¬
esting proof of that sirrfple state¬
ment, because, in order to hoard
work
son's first
inaugural
address—"as
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
166
Volume
Military Force May
Be Necessary In Greece
(Continued from page 16)
travention of the same basic prin¬
Action Urged
This is
matter which
a
the Se¬
curity Council must face squarely.
Members
the .United
of
tions have conferred upon
Na¬
the Se¬
curity Council primary responsi¬
bility for
the maintenance of
ternational peace and security and
have agreed that in carrying out
these duties under this responsi¬
bility,
Security
the
Council
acts
It is the duty of
their behalf.
on
take the action neces¬
prevent further support
of
the Greek guerrillas by its
northern neighbors so that Greece
this body to
to
sary
determine
may
its
functions,
including persons able to act as
joroer ooservers and to report on
gation Commission to make pro¬
posals for averting a reptition of
the border violations.
The Com¬
mission has worked carefully and
diligently on this phase of the
problem. Nine of its eleven mem¬
bers have subscribed to a recom¬
mended course of action for the
This course of
stated by the Commis¬
Security Council.
is
action
sion's report to have been "framed
spirit of Chapter VI of the
in the
Charter of the United Nations with
first
view
preventing
to
observance
ihe
convention to
any
aggravation of the situation, and
secondly
to
alleviating it and
eventually restoring it to normal."
frontier
the
of
established, the
be
state of the frontier area and cog¬
nate matters.
ture
the
of
dous
Considering the
terrain
problems
na¬
tremen¬
and
in the
Security Coun¬
involved
controls which the
to
cil
would
the
parties concerned, the Secur¬
direct
recommend
Council agency would have
difficulty without such a
staff.
It may not be possible at
this time to place border observ¬
ity
great
at every
ers
destiny der,
own
rights as a sovereign
Member of these United Nations.
The Council invited the Investi¬
its
within
a
should have the staff
nor can
point along the bor¬
it be determined how
such observers will be re¬
quired until this new agency be¬
comes a going concern and until
it has analyzed fully the nature
of the problem. Nevertheless, this
many
new
must
agency
United
Nations
call
for
the
upon
adequate
sistance in this regard.
as¬
its first order of business.
member
wish
to
Council
this
of
No
should
divert its attention from
this immediate task.
One of
our
principal purposes in establishing
the Commission was that it should
propose a course
of action for the
Security Council. We could hardly
convince the world of
of purpose
ness
if
our
serious¬
we were
to take
of
VII
Chapter
Morgan Stanley Offers
the
of
Charter.
The framers of
our
Charter
con¬
that the provisions
templated
of
Chapter VI should serve as an im¬
pelling and effective instrument
for the settlement of disputes.
In
its
and a half of operations
must recognize that the Se¬
year
we
curity Council has in fact effec¬
tively solved several serious prob¬
lems by recourse to the provisions
Members
of
Nations
United
the
and those who look forward to be¬
be
also
must
members
coming
deeply conscious of the obligation
of members under Article 25 "to
accept and carry out the decisions
of the Security Council in accord¬
ance with the present Charter."
the
For
earlier
set
the Council
forth,
I
have
I
propose
that
adopt the substance of
the Commission.
the proposals of
Our
which
reasons
representatives
on
the Com¬
mission have given many hours of
study, thought and consultation to
the drafting of these proposals; I
strongly
recommend
that
the
as
spite of the demands of the state
concerned
to
take
all
possible
measures on its own territory to
deprive such bands of any aid or
protection, should be considered
by the Security Council as a threat
to the peace within the meaning
the Charter of the United Na¬
of
templates
when
the
awarded
debentures
petitive sale earlier the
on
a
bid
of
at
day
same
(par $100).
102.40.
Net proceeds will be applied
the company to the payment
by
of
Overby Becomes U. S.
$61,000,000
borrowed
from
its
parent, American Telephone and
Telegraph Co., on demand notes
Executive Director of
and
the
balance
further
meet
will
be
used
requirements
of
to
a
record
construction
which
requiring and is ex¬
require over the next
is
pected to
few
years
substantial
capital.
the
obtaining of
amounts
The
very
of additional
spent $70,000,000 for construction in 1946
and $25,000,000 in the first three
company
months of 1947.
The
Monetary Fund
On June
program,
26, Andrew N. Overby,
assistant to Secretary of
Treasury Snyder on interna¬
special
the
tional financial affairs, was sworn
in
as
United States Executive Di¬
rector of the
as
of March 31,
before entering the
Mr. Overby
Treasury
Company
International Mone¬
tary Fund.
Dept.
Vice-President
of
Assistant
was
the
New
1947, had
;'••••
'
illness.
1853
*
of Nrut tlork
vated
to
June 30, 1947
becomes aggra¬
sufficient
a
STATEMENT OF CONDITION
action
enforcement
situation
a
to
extent
proposals. First, the Se¬
The Commission has clearly rec¬
Council would call upon
the countries in question to re¬ ognized that the situation will be
frain from the support of elements more serious if the acts committed
an
neighboring countries aiming by Yugoslavia, Albania and Bul¬
to overthrow their lawful Gov¬ garia against Greece's independ¬
Secondly, the Commis¬
recommended that the
ernments.
has
Council
call
four
Governments
take
certain
upon
the
concerned
action
rectify the situation.
to
necessary
to
They
to
conclude conventions to regulate
and control their frontiers; they
RESOURCES
are
continue.
should
ence
is
It
im¬
portant that the Security Council
this
approve
proposal
the Commission has made.
which
is
It
particular
important
it
because
will
Cash and Due from Banks
TRUSTEES
....
$ 20,476,960.67
32,327,664.34
Loans and Discounts
State and
Obligations
Municipal Obligations
Other Bonds
.
.
.
Federal Reserve
Bank Stock
.
.
8,241,000.00
.
.
:
69,581,005.96
.
.
the
world
force
of
use
that
the
continued
violation
in
of
the
Charter must be regarded by the
United Nations as requiring en¬
to study the practicabil¬
forcement measures.
ity of concluding agreements for
Taken as a whole this is a care¬
the voluntary transfer of minori¬
ties. These recommendations the fully devised plan, a plan which
Security Council would make to our representative on the Com¬
mission
the parties concerned.
developed in the light
The Security Council must use 6f conditions on the spot.
to establish controls for refu¬
Real Estate
Mortgages
840,000.00
.
3,963,234.18
.....
the full weight of its influence in
The
future
this situation at least for a limit¬
tions
ed period
require
of time.
The Commis¬
and
the
that
of
the
peace
the
United
Na¬
of the world
United
Interest
Receivable
.
.
488,740.16
.
take effective action to put an end
ing that the Security Council es¬
tablish an agency of its own in
the area;
Thte agency will have
border.
duty and function to investigate
frontier'Violations
and
to
its
to violations of Greece's northern
The
act upon
and
best suited to
is to find
problem
the course of action
accomplish this pur¬
Government is con¬
the Security Council
the means mentioned in Article 33 should at this stage in this case
of the Charter of certain controv¬ continue to act under Chapter VI
ersies and complaints having to of the Charter, bearing in mind
use
good offices for the settlement by
do with the frontier and will also
the
four
Governments
in
pose.
My
vinced
that
if
that
found
the
by the
acts
and
Total
......
$140,613,605.31
practices
Investigation Com¬
carrying out the recommendation
made by the Security Council di¬
that there is
JOHN J. PHELPS
JOHN SLOANE
parties concerned.
The
proposals of the Commis¬
sion also include a provision that
cil
will be compelled
no
but
that there
the
peace,
exists
breach
of
a
threat
the
to
peace,
*
J
'
BARKLIE HENRY
GEORGE DE FOREST LORD
ROLAND L. REDMOND
Capital Stock
'.
-
.
4,000,000.00
24,000,000.00
Surplus Fund
Undivided
$
2,835,339.04
Profits
HAMILTON HADLEY
FRANCIS T. P. PLIMPTON
974,240.72
General Reserve
Deposits
.
107,580,404.19
860,706.67
Reserved for Taxes, Interest, Expenses, etc.
G. FORREST BUTTERWORTH
JAMES H. BREWSTER, JR.
12,914.69
Unearned Discount
EDWIN S. S. SUNDERLAND
Dividend
Payable July 1, 1947
Total
.
350,000.00
.
......
$140,613,605.31
HERMAN FRASCH WHITON
JOHN M. HARLAN
Securities carried
at $6,015,000.00 have been
pledged to secure
$937,850.75
by law.
States Government War Loan Deposit of
and for other purposes as required or permitted
United
WILLIAM A. W. STEWART
to consider
longer a dispute,
.!
JOHN P. WILSON
mittee should continue, the Coun¬
rect to the
President
LIABILITIES
Nations
sion has recognized this in propos¬
BENJAMIN STRONG
1,475,000.00
Banking House
Accrued
of the Board
3,220,000.00
make clear to these countries and
to
WILLIAMSON PELL
Chairman
United States Government
gees and
assist
was
pon\-
Ittttd) §latra ®niat Company
curity
a
over¬
group
1, 1972; $25,000,000 40-year 3%
debentures, due July 1, 1979; $45,000,000
2%%
debentures,
due
Aug. 1, 1985; the $75,000,000 in
new
2%%
debentures; and 2,100,000 shares of capital stock,
warrant it.
kinds of
are
The
CHARTERED
:
:i.rt
Enforcement Action Contemplated
.
Security
The issue has been
Following the financing, the
Company's outstanding capitalization will comprise $35,000,000 30year 2%% debentures, due Sept.
tions."
of action be¬
My Government attaches great
explored the
importance to this proposal.
Al¬
proposals presented to us by the
though the Charter contemplates
Commission.
I, therefore, submit
the pacific settlement of a disnute
that the Council should proceed
of this kind, we cannot overlook
promptly to the discussion of these
the fact that the Charter also con¬
proposals.
sion
publicly on June 26 $75,000,000 Southern Bell Telephone
& Telegraph 40-year
2%% de¬
bentures, due July 1, 1987 at 102.80% and accrued interest to yield
The debentures will be redeem¬
any new course
fore having
fully
The Commission has made three
fered
mission.
up
Three Kinds of Proposals
case.
Morgan Stanley & Co. headed
an
underwriting group that of¬
subscribed.
at least 30 days' notice at
ranging from 105.80% to
plus accrued interest in eacb
on
prices
par
Southern Bell Debs.
2.76%.
settlements. The author¬
ity of the Security Council under
Chapter VI carries with it the full
weight of the United Nations. The
of pacific
able
3*
York
2,334,967 telephones in Federal Reserve Bank. He is a
Council follow them as closely as
executive of the Irving
service in the states of Alabama, former
possible this agency must estab¬
possible.
.
lish a continuous surveillance of
Florida, Georgia, Kentucky, Lou¬ Trust Company of New York and
I am submitting for the consid¬
the border, thus making it pos¬
isiana, Mississippi, North Caro¬ was an army lieutenant colonel
eration of the Council a resolution
sible for the United Nations at all
the
war.
He succeeds
lina, South Carolina and Tennes¬ during
times to be fully aware of any with this purpose in view. I would see. The Company estimates that Harry
White, who resigned as
violations.
like to call your attention to the other companies operating in these U. S. Executive; Director on the
In this connection.
I wish to fact that this resolution follows states had in service on Dec. 31, ground of ill health.
1946, approximately 554,000 tele¬
draw the attention of the Security
closely the text of the proposals.
phones. Southern Bell on March
Council especially to the proposal
Edward J. Duffy Dead
Only those changes have been 31, 1947, had on hand approxi¬
of the Commission that: "In the
Edward
J.
Duffy, a former
made which have been found ne¬ mately 345,000 unfilled applica¬
light of the situation investigated
tions for
telephones, and these member of the New York Stock
by it the Commission believes cessary to translate the proposals
that, in the area of its investiga¬ into' the form of a resolution, and were almost entirely for service Exchange and the New York Curb
in
localities
where
adequate Exchange, and a partner in Ed¬
tion future cases of support of
to establish satisfactory terms of
switchboard and outside plant fa¬ ward J. Duffy & Co., New York,
armed bands formed on the ter¬
died at his home after a week's
reference for the continuing Com¬
cilities were not ,yet available.
ritory of one state and crossing
Insofar
Having established the Commis¬
having received its care¬
fully prepared proposals, the Se¬
curity Council, if it is to proceed
into the territory of another state,
an orderly fashion, will now con¬
or of refusal by a Government in
sider the Commission's proposals
sion and
as
meaning
accessary 10 penorm its
ciples.
The
this agency
act of aggression within the
an
or
U. S. Declares
(33)
MEMBER FEDERAL DEPOSIT
INSURANCE CORPORATION
34
THE COMMERCIAL & FINANCIAL CHRONICLE
(34)
Thursday, July 3, 1947
Taft-Hartley Labor Law in Action The State of Trade and Industry
(Continued from page 15)
other acts which injure labor, cap¬
ital and the whole population!"
deaf
dent's
and
sent
Mr.
the
Truman
to
legisla¬
passed
labor
Bill
Case
Presi¬
the
on
for
request
The
tion.
ears
was
House.
White
that
vetoed
legis¬
lation in
June, 1946 even though
only a few short weeks before he
had pointed out the necessity for
such legislation.
80th session of Con¬
When the
gress
and
this
convened
House
the
directed
year,
Senate again
earnest attention to
labor-manage¬
Strikes, particu¬
larly in the coal mines, reaffirmed
the public in its conviction that
relations.
ment
legislation
essential.
was
Week after week, the House and
to the
testimony of witnesses who
represented a variety of view¬
labor
interests.
and
Organized
not excluded from these
was
hearings.
On the contrary, we
earnestly sought constructive sug¬
gestions from organized labor. In¬
stead, spokesmen of organized la¬
bor offered
organized
assistance.
no
labor
In
actually
fact,
refused
admit that abuses existed.
to
In view of this
attitude, it would
have been understandable if Con¬
has yielded to the extrem¬
gress
ists who would
have
jeopardized
labor's legitimate rights.
however,
Congress,
firm in its deter¬
was as
mination to protect the fundamen¬
tal rights of labor as it was deter¬
mined to advance the public in¬
terest in
labor-management rela¬
tions.
Act
of
1947.
have fulfilled
believe
I
responsibil¬
our
ity, the rest is
up to labor, man¬
agement and the executive branch
of the government.
I
repeat again what I have said
countless
times
new
Labor
Act
of
wards
that
the
Management Relations
will
1947
bringing
before
be
effective
in
closer and closer to¬
us
objective of industrial
peace if it is properly and impar¬
tially administered.
I say this because this new law
has brought greater balance into
the
labor-management relation¬
ship; has equalized in large meas¬
ure the
responsibilities, obligations
and rights of both labor and man¬
our
agement
under
the
law; has
re¬
turned to individual workers their
freedom of action through
long-needed bill of rights that
will protect and safeguard them
proper
a
in
both
their
their
unions
relations
and
towards
towards
employers; provided
rules for
new
labor organizations which
democracy
age
labor
the
in
movement
hands
of
the
and
the
their
encour¬
organized
strengthen
great
majority
of labor leaders
sincerely inter¬
ested in the development of stable
and
responsible
tions,
and
places
public
needs of
labor
equally
our
organiza¬
important,
welfare
and
the
people for peaceful
labor-management relations in
plant
above
the
of either labor
The
selfish
or
President's
the
interests
management.
statement
on
June 26 pledging good and faith¬
ful administration of the new law
is heartening reassurance that
the
country
many
may
years
hope to
lations
a
for the first time in
look forward with
new
era
between
agement
than
the
of peaceful re¬
labor
Nothing
and
can
President's
be
man¬
the threshold of
the
coal
truer
can
result
only in economic
dislocation injurious to all of us.
If it should reach serious
propor¬
tions, it would threaten the sta¬
bility of
our economy and endan¬
ger the peace of the world.
"We cannot afford such a
result.
It
is
every
to paralyze our economy.
power
believe that the Taft-Hartley
however, places sufficient
in
the
hands
our
solemn
effort
to
duty
to
maintain
I
Bill,
power
President
the
of
make
indus¬
of 1.947
usher in
can
era
new
a
If the behind-the-scenes
negotiations between
industry and the United Mine Workers
of
constructive labor-management re¬
coal contract
lationships and'industrial peace in
country. Congress of course
fully aware that legislation of
and by itself cannot bring about
a
or assure
The over-all purpose of this leg¬
was to restore conditions
the
which would
to the
the
from
disas¬
the
nationwide halt
If,
as
now
the
mines
it
industrial disputes by mutual co¬
operation and peaceful means. We
April 1946.
contractual vacation period ends,
we will be in such a labor crisis
is
as
provided
Hartley
Act;
threatened
ing
in
I
Taft-
the
quote:
industry
or
a
sub¬
"will
stantial
part
thereof"
that
imperil
the
national
health
safety." Under the
law, the President
or
Taft-Hartley
the
has
now
authority to deal promptly and ef¬
fectively with this emergency. He
can now, and "should
immediately,
set up a board of inquiry to se¬
the facts
cure
and
no
unneces¬
costly
delay will post¬
the President's instruction to
sary
pone
the
that
so
a
national
new
been
policy under which it becomes
It
far
freedom
and
tions with their
the
employees and in
efficient conduct
ductive process.
The
President
of
of
the
the
pro¬
United
States is to be commended
forthright promise that this
law will be well and
ministered
cies.
I
his
on
by Government agen¬
am
greatly heartened like¬
wise, to see the Presidents of the
two great employers associations
District Court to enjoin the^strike,
ties under this law with
Attorney-General to petition
a
v
Since the law authorizes the ap¬
pointment of a board of inquiry
tual
threatened
a
strike,
there
is
ac¬
an
official
only
one
ately to invoke that section of the
Taft-Hartley Act which provides
a
fact-finding board of in¬
quiry, he will himself have failed
up
to
his
own
to
appeal
the nation "to make every effort
to maintain industrial peace under
the provisions of the new law."
machinery provided for in
the law should and will, if prompt¬
ly invoked by the President, end
threat
of
nationwide
a
coal
walk-out and halt the strike. The
first and immediate step
is the
establishment
of
board
a
of
in¬
quiry.
The second is prompt ac¬
by the President through the
Attorney-General after receiving
tion
the report of the board of
to
inquiry,
enjoin the strike, which means
that
the
strike
is
barred
for
Following that,
the walk-out is
enjoined for an¬
other 20 days while the National
Labor
Relations
Board
polls the
employees of each employer in¬
volved to learn if they wish to
accept the final terms offered by
the employer. Thirdly, should the
strike take place ^fter this ma¬
chinery has been fully "utilized,
the President is then to submit to
Congress
a
full report of the
en¬
tire
proceedings, which will then
provide the basis for the formula¬
of
further
remedial
tion.
'
legisla¬
'
.
Should this section of the Taft-
Hartley Bill
prove insufficient to
protect the public from the threat
paralyzing strike that now
over it, it is
my full inten¬
to introduce a bill
in the
hovers
.
House
which
will
contain
those
provisions of the original Hartley
Bill
dealing with emergencies that
w'ere
bill
omitted from the conference
is now the law of the
that
land,..,
Act
..
*
V
.
v
Will Usher in Bettter
Labor
Presi¬
moment lies in his hands." He has
authority.
He
must act!
Turning
crisis
to
from
the
this
immediate
broad, fundamental
problem facing the country, I am
satisfied that, with genuine co¬
operation on the part of organized
discussions
demands
The
not
are
between
wage
now
a
worked,
and
argument
provisions of
an
certain
coal operators and the
safety program features in
stumbling block.
Such demands
and
possible
over
the
protection
labor
new
thrashed out.
act,
for
the
I
le¬
ago,
gitimate
rights and as a call to
out their great responsibili¬
carry
ties
to
the
American
people in
a
constructive and forward looking
'
manner.
,
But it is the
ticularly
you
,
employers, and par¬
people charged with
Administration
of
company
union
being
ago,
% from the
pre¬
The week's operating
en¬
and
the
still
72% of capacity
beginning June 30, 1947, as compared with 95.6%
97% one month ago and 87.2% one year ago.
week
week
one
steel
basic
to
were
,
The American Iron and Steel Institute announced on
Monday
of this week the operating rate of steel
companies having 94%
of the steel capacity of the
industry will be
leg¬
of their
ago.
rate is equivalent to 1,259,900 tons of
castings compared to 1,672,900 tons one week
1,697,400 tons one month ago, and 1,536,800 tons one year
:
^
' '
**
ingots and
?
,
ELECTRIC PRODUCTION 13.1% ABOVE A YEAR AGO
The
Edison
Electric
"
Institute
reports that the output of' elec-»
tricity decreased to 4,674,748,000 kwh. in the week ended June 28,
1947, from 4,676,300,000 kwh. in the preceding week.
Output for the
week ended Juno-28, 1947, was 13.1 % above that for the
correspond¬
ing weekly penoH
one year ago.
labor
policies that I wish to speak
directly at this time.
I know that
upon
the
passage
of this law,
many of you who honsetly sought
RAILROAD FREIGHT LOADINGS
5%
ABOVE
1946
Car loadings of revenue freight for the week ended June
21,
1947, totaled 901,296 cars, the Association of American Railroads
to do
a
constructive job have been
baffled and frustrated by the lack
announced.
of
equitable national labor pol¬
Under this law, I am con¬
!
;
week for 1946.
an
icy.
vinced that you can now do a bet¬
ter job of relations with your em¬
ployees
at
company
and
plant
levels.
This
increase of 6,004 cars, or 0.7% above
preceding week, and 42,873, or 5% above the corresponding
Compared with the similar period of 1945, an in-
the
crease
of
24,59$
was
cars,
an
or
:
;
2.8%, isi shown,
AUTOMOTIVE OUTPUT CONTINUES RISE
\
Production of passenger cars and trucks in the United States and
Canada the past week, according to Ward's Automotive
Reports; was
at 104,855 units.
This compares with a revised estimate
102,545 units the previous week, 66,913 in the like period of 1946
and 127,926 in the comparable week of 1941.
While
a
estimated
ban
of
Congress refused to place
against industry-wide bar¬
gaining,
forced
and
employers
to
bargain
cannot
this
on
be
basis
For the five months
dustry-wide
bargaining, if they
choose.
An employer can now in¬
sist that the union bargain with
him in good faith.
In addition,
Congress has spoken
iveness and
tion
of the
supervisors
with decis¬
finality on the ques¬
place of foremen and
as
members
of
the
management group.
coercion
source,
tive
or
domination from any
thus giving greater incen¬
than
heretofore
to
company
policies and practices seeking to
establish friendly and cooperative
relationships.
The operation of
this law and the cooperation of
organized labor can be jeopardized
at the outset by the failure of em¬
ployers to take a constructive and
statesmanlike view of this law
and
conduct
or
other
any
intemperate
state¬
by foremen,
members
of
or
in their dealings with rank
workers and union rep¬
resentatives.
ment
and
file
;
time all General Motors plants were
BUSINESS
The trend in
INCORPORATIONS
the rate of
;
strikebound, the Automobile
Manufacturers' Association reported.
NEW
>
,
STILL
DECLINE IN
"t
MAY
business incorporations continued
new
downward in May; according to Dun
9,179
business
new
charters
were
& Bradstreet, Inc.
A total of
issued in 48 States during May.
the
smallest number, with the exception of
February, re-»
ported since last November which had 8,485 charterings.
The May
was
count ,was 623
fewer than the
less: than the 9,802 for April, and
12,^12 recorded in January.
was
almost 3,00Q
For the fifth consecutive
month the numbertjfell below the figure for the corresponding month
of the previous year; the current drop amounts to 2,865, or 23.8%«
.
BUSINESS FAILURES DECLINE SLIGHTLY
V ^ Although
declining from the
f
previous week's level, commercial
and industrial failures continued in the week ending June 26 to be
four times as numerous as in the comparable week a year
almost
Dun
ago.
& Bradstreet,
70 last week and 14 in the
Inc., reports
same
60
concerns
failing
against
week of 1946.
TThis week's decline occurred entirely: in> failures involving
liabilities of $5,000 or more, falling off from 61 a week ago to 46
i- • in the week just-ended.
/•••
>.'•>v
V*'•
THE COURSE OF THE STOCK MARKET
»
:
1'
"
On the first
day of trading last week the Market touched a new
high level following five weeks ol rising prices, but on Tuesday the
forward movement, came to a temporary halt under great
pressure
of profit-taking with losses resulting.
" "
;
>
•.
I
wish, in particular, to con¬
gratulate and thank those com¬
panies which have already taken
steps to define and announce their
policy and attitude with respect
to this law
all their employees
(Continued on page 35)
new
?
or
manage¬
factory sales of
passenger
This
Employers are relieved from the
legal obligation to bargain with
groups of their own management.
Another important point is that
your, employees are now free from
of 1947
automobiles and trucks aggregated 1,950,493 units compared with
776,366 units for the like period of 1948, during most of which
take themselves out of in¬
can
by. rash
dent for prompt and
forthright ac¬
tion.
The responsibility
at this
the power and the
people.
and
Workers.
an
from
trustee¬
confirmation and
a
as
dorsement
ments
Relations:;
Mine
islation
of the
tion
the Amercian
serious since the steel industry had
more
This represents a decrease of 23.6
points, or 24.7
ceding week.
a
period of 60 days.
tion
to
This is all the
likewise hopeful that the lead¬
of organized labor will see
their way clear to accept this
the
The
the
ship
are
increase in the welfare fund
contributions, time and a half for
Saturday and double time for Sunday regardless of previous time
as
restraint
of
sense
may
meeting
United
the union
ers
of action open to the Presi¬
If he fails to act immedi¬
live
sobering
a
mid¬
front, are unfounded.
Until top level negotiations on the coal
situation, in progress since last week, reach a point where^ total
agreement is almost assured, there probably will be no "full dress"
am
or
for
to
and
at
keeping their oprations
ators'
asking American management to
approach their new responsibili¬
if it takes place.
Chances
A forced
new
faithfully ad¬
national
Rumors circulating that the
peace offering of a 350 an hour
increase made to John L. Lewis by
Benjamin F. Fairless, U. S. Steel
Corp. President, has resulted in a break in the northern coal oper¬
of
management
in the development of sound rela¬
Age,"
remote
month.
a
together for the public good.
advanced the opportun¬
has
ity
were
too
were taking on a
normal
operating rate of slightly less than 50% would
mean
a
monthly loss to sieel consumers of 3,500,000 tons of steel
ingots.
A prolonged tieup would mean the industry would be
unable to maintain operations at the
half-way mark for more than
possible for management and
labor, if they are so inclined, to
work
Iron
not
reaching the point where deliveries
aspect.
labor
more
"A
actual strike affect¬
or
entire
an
for
and
have
now
"The
were
operating rate will decline
fall below 50% of capacity three weeks from now.
already suffering the most serious setback since
Steel consumers
July 8, when their
on
possible gen¬
effective collective bar¬
coal
likely,
seems
make
to
Wednesday of this week.
on
reached
large steel companies
some
rapidly and
that
consequences
and
and
gaining and would promote to the
entails.
according
agreement being
maximum extent the settlement of
production of coal with all
dread
uine
an
satisfactory
a
its back within
on
at a high level on the basis that a national coal
strike would not
occur—or if it did it would be short lived.
Other steel companies
have been forced to cut back
operations, the greatest decline occur¬
ring in units of the U. S. Steel Corp.
It is expected that unless coal miners return to work
within the
next week or two, the nation's steel
good employer-employee
relations.
save
such
week
islation
a
weeks,
of
representatives of
do not result in
industry will be flat
metalworking weekly release
if applied with prompt¬
vigor and determination can
nation
three
of
the steel
was
which,
trous results of
period
soon
this
ness,
The nation looks to the
"Industrial strife at this critical
time
national crisis—
a
situation, which has the
statement
that:
(Continued from page 5)
STEEL OUTPUT DROPS TO 72% OF CAPACITY
of. this law, the
Labor-Management Relations Act
Threatened Coal Strike
dent.
Relations
management and govern¬
agencies trusted with the
mental
Yet, despite this serious warn¬
ing, we find ourselves again on
course
Passed
Congress has passed by over¬
whelming
majorities, in
both
Houses, the Labor-Management
labor,
administration
for either
Labor-Management Relations Act
we
the provisions
law."
new
miners do not intend to return to
Senate Labor Committees listened
points
under
peace
not
had
meanwhile
Congress
turned
trial
of the
Later in the week most of the Market's earlier declines
recouped in rather slow
•
were
trading, aided by a rally in American
Telephone and Telegraph stock which was occasioned by news
that two of its important subsidiaries had received temporary
rate
increases.
'
!
/ With the first half year period practically at an ;
end, the position of the Market is presently close to the level it :
began the period.
Volume
166
Number 4698
THE COMMERCIAL & FINANCIAL CHRONICLE
(35)
35
WHOLESALE FOOD PRICE INDEX LEVELS OFF
After rising steadily for four weeks, food prices leveled
,
the latest week.
;
for June
off in
The Dun & Bradstreet
wholesale food price index
unchanged from the $6,24 recorded a wfeek
earlier.
The current figure compares with $4.35 on the
correspond¬
ing date a year ago.
Advances for the week Included flour, corn,
oats, hams., lard, butter, milk, cocoa, beans, peanuts, eggs and pota-
24
remained
These
/toes.
were
offset by a sharp drop in fresh beef and declines
in wheat, rye, coffee, cottonseed
oil, prunes, steers, hogs and lambs.
The index represents the sum total of the price per pound of 31 foods
in general use.
-.V,';\
t
.
WHOLESALE
COMMODITY
PRICE
NARROW RANGE '
INDEX
HOLDS
!
TO
^
The
;
daily wholesale commodity price index, compiled
& Bradstreet, Inc., fluctuated within narrow
limii§. during
week.
It closed at 259.73 on June 24, as compared with
week earlier.
On the corresponding date a year ago it
199.15.
/• '
".'-V ;
••••;**
:
.
Grain
markets
during
the
of continued unfavorable
in wheat futures.
vance
corn
turned
flour
to
rose
downward
markets
Advances
at
conditions resulted in
The cash market
the
the
high
stood
'
a
at
Both
the
of
an
ad¬
firm but inactive.
was
of $2.00%
close.
price
258.74
week
bushel
a
domestic
/-
fairly quiet last week.
were
in
weather
record
a
past
by Dun
the past
werg unsettled and
Renewed buying interest and reports
prices moved uncertainly.
July
then
and
and
export
but finished
Cotton
.
trifle
a
prices
during the first half of last week and later
Strength in early dealings
announcements
attributed largely
was
of Government purchases
and to
crop devel¬
Offerings in the spot market were limited and trading
Spot cotton on the New York Cotton Exchange closed at
37.87 cents per pound, as compared with 38.13 cents a week earlier.
Reports of extensive boll weevil damage in Mississippi together with
the expected small carry-over of old crop held July futures at a
high level.*'
x
opments.
slow.
was
,
Prices for all
months declined toward the end of the week,
reflecting chiefly speculative liquidation and;'to
i;
extent,
some
with
respect
a
heavy but few goods
goods
were
structions
quate.
were
stronger.
available.
Prices
on
including broadcloths,
:
lawns
and voiles
were
con¬
inade¬
*
informed
to
relations
supervisory
and
this
instructed
policy
In
intention
clear
maximum
do¬
so
utilize
to
inevitable
was
the
correct
provisions
of
in
to
the
tive
trial
for the
settlement
of
disputes by peaceful
a
portunities provided by this law
for
better two-way communica¬
tions
between
management and
In
employees.
have
labor
with
rience
to the conclusion that
come
much
of
difficulties
our
lack of
a
of expe¬
problems,
I
bor
and
my years
stems
This is approximately the
1946.
same
as
the record
estab¬
rate
Preliminary figures indicate, however, that the total
consumption for April will be the lowest for any month since July
1946.
|
RETAIL
AND
WHOLESALE
TRADE
HIGHER
FOR
WEEK
warn
and the
consequences
of
my
some areas
that total retail volume for the past week
was
of the country
at
somewhat
a
higher level than that of the previous week, according to Dun &
Bradstreet, Inc., in its current weekly survey of trade. Total re¬
tail
volume
continued slightly
that of the corresponding
above
week of last year. The buying public thronged department stores
but insisted on
better quality or lower
prices.
encouraged by price cuts in many lines.
buying continued to increase, but collections
Despite increased
volume
of
food
consumer
increased
Sales
were
Installment and credit
were
slow.
resistance to high prices, the dollar
slightly
that of
over
the previous
week.
Continued low purchasing of meat led to scattered price reductions
toward the week's end but meat
prices generally continued to climb.
Poultry and fresh fish were plentfiul.
Abundant supplies of fresh
vegetables and fruits found
foods
a ready market, while demand for frozen
Sugar purchases continued to mount and supplies
decreased.
of sugar proved adequate.
,
ately.
apparel
and sales
Clothing clearance sales
ing of slow moving
demand
able.
of beach
items.
selections
as
were
and
ment, and
sportswear fell moder¬
increasingly plentiful
some
in steady
and
desir¬
areas.
Hardware volume increased with demand large for garden tools
and supplies, lawn furniture and materials for
redecorating homes.
Known brands of electrical appliances found a
ready market.
Trad¬
ing in furniture, rugs and bedding
Wholesale
volume
generally active.
was
in the week and was sub¬
stantially above that of the corresponding week a year ago. Buying
was characterized by increasing
style-quality consciousness and high
selectivity.
;
Department
from
the
rose
store
Federal
moderately
sales
Reserve
on
a
country-wide
Board's
index
Many forward looking
ees.
panies
have
for
basis,
the
as
week
and the
tion
labor
greater part of the week.
close to
totaling
up
of
programs
successful
1947, sales increased by 7%
" Vv
Department store sales
free
these
law, the
new
of
area
management has
been, substantially enlarged. Em¬
ployers are once more free to talk
or promise of
This opportunity should
utilized by all employers not
be
ization
but
to
and
am
confident that such
gram,;; if
extended
American
degree
a
pro¬
throughout
industry, would meet
of interest
a
the part of
on
the workers hitherto little recog¬
nized by management.
Such pro¬
would call forth
grams
a degree
cooperation on the
part of labor in our productive
enterprise never yet attained in
our
history.
The extent of our
progress in this direction will de¬
pend in large measure upon the
efforts of employers and you peo¬
ple responsible for the adminis¬
of
voluntary
tration of labor
policy in
YORK
%
JUNE 30, 1947
ASSETS
Cash and Due from Banks
$
333,432,892.94
.
•
.
U. S. Government Securities
.
•
602,665,899.48
•
•
505,320,503.83
.
.
Loans and Bills Discounted
State and
Municipal Securities
Other Securities and Investments
Banking Premises
16,468,304.36
.
•
35,435,001.71
Last Chance
.
.
.
.
.
Receivable
Customers'
on
Acceptances
Cash
4,385,905.97
••.*••••
Liability
5,298,478.41
•
Deposited Against Bonds
Borrowed
•
•
•
«
*
.
•
8,331,700.00
•
$1,526,091,312.84
LIABILITIES
Capital
for
14,752,626.14
Accrued Interest and Accounts
your re¬
spective companies.
•
.
.
$30,000,000.00
Surplus
Collective
.
.
.
80,000,000.00
Undivided Profits
In
conclusion, I wish to
in this new
and
more
chance,
preceding week.
were
esti-
For the
7% and for the
.
management
policy,
have
perhaps it
one
will
and
for
be
can
industrial
peace
utilized
successfully
and constructively to raise pro¬
duction and the long range stand¬
ards of living of the American
people.
I
am
convinced that during the
last few years of the
year
General Reserve
Dividend
be
the last chance, to prove that col¬
lective bargaining is an effective
instrument
38,201,727.79
148,201,727.79
that
say
national labor
labor
15,665,816.84
Payable July 1, 1947
.
1,350,000.00
1,340,581,587.85
Deposits
Accrued
Reserve for Taxes,
Expenses, etc,
••••••
5,184,979-96
Acceptances
Outstanding
.
$
7,371,392.35
Less Amount
in Portfolio
1.851,800.02
5,519,592.33
Liability Under Bonds Borrowed
8,331,700.00
Wagner Act,
widespread industrial strife
Other Liabilities.
••••••
during this period, the American
1,255,908.07
$1,526,091,312.84
public had practically lost confi¬
dence
in
collective
bargaining as
of labor relations.
The
process
evidence
of
this
is
the
in
seen
proposals made to Congress
for compulsory arbitration.
For¬
tunately, both management and
labor
were
united
in
believing
that this would ultimately bring
many
American
economics and
problems of their own com¬
panies and in return in invite the
questions and suggestions of their
fatal
to date 9%.
strengthened in its relations with
the world.
the
ended June
rose
collective'bargaining,
discuss the
Government domination and
trol,
which
prise.
the
free
to
not
labor
system
While
role
would
a
of
con¬
only
to
but
free
be
the
enter¬
certain increase in
of Government
in
labor
Securities in the above
statement are
carried in accordance with the
method described in the annual report to
stockholders, dated January
deposited to
secure
deposits, including $12,549,210.34 of United States Government
deposits, and for other purposes.
14, 1947. Assets carried at $23,970,051.70 have been
Member
our
raised and the hand of this nation
benefit.
an
the
living of
progressively
CONDENSED STATEMENT OF CONDITION,
refrain from threats
*-*"■■■
in
be
are
speech for
pared with
7%
may
Free Speech of Management
Under the
According to the Federal Reserve Board's index, department
sates m
New Vork City for the weekly period to June
21,
1947, increased 5% above the same period last y^ar. This com¬
of
citizens"
fatal
NEW
re¬
man¬
agement in this country to the end
est executives in the company.
a
above last year as compared with recent advances
21, 1947, sales
and
being participated in by the high¬
of the
to 10%,
increase
labor
for sales, produc¬
policy. The more
reasons
and
taken
Retail trade in New York last week softened as demand for sea¬
sonal goods was curtailed by the abnormally cool weather
prevailing
a
this the be¬
giving more information to their
employees about their business
ended
1347, increased 3% above the same period of last year.
This compared with an increase of 6% in the preceding week.
over
between
un¬
policy,
better day in the
Bankers Trust Company
established
already
rela¬
forward
com¬
labor relations in this country de¬
teriorated steadily.
As a result
June 21,
For the four weeks ended June 21,
and for the year to date by
10%.
to make
a
that the standards of
command that
effective programs looking toward
'
'V
determined
lations
go
national labor
our new
ginning of
of human
us
Bargaining
instrumental in the purchas¬
Women's fall suits sold well in
der
field
Let
the part of employ¬
on
.
Men's clothing continued
became
the
tionships.
understanding—on
of the problems and view¬
points of management, and on the
part of employers, of the hopes,
aspirations and needs of employ¬
Rain and cool weather in many areas discouraged interest in
summer
will, all things
This is particularly
part of employees, of the prob¬
and viewpoints of manage¬
I
ual mitigation of weather conditions in
so
in
true
to both of them of
force at
and
of good
men
possible.
workers.
stimulated by weddings and the grad¬
was
To
are
such action and to urge them with
every
caution
settlement have failed.
courts.
the
shpuld be util¬
extreme
only after all efforts for peaceful
both organized la¬
employers
strengthened NLRB
courts
ers,
AND YEAR
Consumer buying
witn
lems
only to discuss matters of organ¬
lished in
ized
minimum of Govern¬
before the NLRB
I wish to
the
to the
means
and with
to
and
provisions of this ment interference.
legislation to promote more
Warns Against Litigation
friendly and cooperative relation¬
ships between management and
Jt is true that under the pro¬
their employees and with labor
visions of this law employers and
organizations where they exist.
unions who are so disposed can
As
personnel
executives you
should not overlook the new op¬ embroil themselves in litigation
wool for the first quarter of 1947 was at an annual rate of
pounds.
resort
indus¬
openly and frankly with their em¬
ployees, provided of course they
1,107,000,000
order
yet the
offer a
balance,
this law
the
Activity in the Bostop raw wool market continued steady last
week.
Due mostly to supply conditions, the turnover was
chiefly in
domestic wools, the heaviest demands being for fine worsted
types.
Offerings of choice foreign wools continued to be very scarce.
The
Department of Agriculture reported that consumption of apparel
:
to
and maximum opportunity and incen¬
ing employers should stress their
fine combed gray
However, supplies of almost all staple
their
their conduct under it.
over the past two weeks.
Textiles
active last week. The demand for print cloths was
were
that
see
is
reaction from the sharp rise
markets
to
force
the
lower.
rose
turned downward.
to the
(Continued from page 34)
and
from
|
spring wheat flours,
resulting from
:the rise in spring wheat prices, caused many
buyers to display re¬
newed caution., Lard prices declined
fractionally\reflecting chiefly
an
increase in cold storage stocks.
Hog values were fairly steady
;
Taft-Hartley Labor Law in Action
,
of the Federal Deposit Insurance Corporation
36
THE
(36)
COMMERCIAL & FINANCIAL CHRONICLE
Thursday, July 3, 1947
Terborgh referred, of whether
Congress and Economic Stability
need houses; it would be the busi¬
(Continue from page 2)
they
this
of
ness
outgrowth of the
not an
are
scientific
whether
process.
0a
committee
decide
to
and
to build them
program
The
Committee
duties,
to
has
two
ducive
main
handle
report
the
several
committees
as
a
on
the
to
would
Con¬
maintenance
be
or
of
would
of
increase
There
are
carrying
Political
Difficulties
There is
obvious difficulties in
objectives, as
these objectives are, for
Report
a
by,
say,
bill would be handled
tax
the
Committee
tails
and
Means
the basis of its de¬
on
the
of
V/ays
allocation of
burden of taxation between eco¬
proper
nomic individuals and
groups, but
that this Committee would act as
an
adviser
the sort of question
on
Mr.
as
to
Terborgh has been discussing,
to whether it is the proper time
look
to
deficit
a
to
stimulate
the
on
over-all
things they
do not
know
anything about the basic
question whether we ought
to
have a stimulus or a cooling down.
In
the
under
of
case
the
theory
a
of
housing bill
the Act, it
would be the business of another
committee to study whether we
with
he
pointed-
out
That
the
is
first quarter of this
committees
have
asked
us
think about those issues;
avenue
to
these
things in¬
party politics.
Cer¬
recommends
matter
no
how
anything,
meritorious,
officially. There may
have been inquiries made of some
throws it into politics.
of the individual members
never
at least, not
members
of the
of
of
bills
does
referred
members
are
committees
it
and
members
which
port,
this
have
not
to
that
be
any
lative
topic
fact
any
but
the
a
num¬
other
a
of
the
on
other
why
reason
President's
the
own
party are in a somewhat delicate
position to participate in the de¬
dealing
are
is
members
its
all
of
of them things which
most
recommended before
grounds,
with immediate problems of legis¬
lation.
According to the Legis¬
sessions
on
ber of recommendations in his re¬
difficulty is
Committee
anything
importance,
say
any
that the President made
the
other committees.
Another
That is no
why the President should
reason
The members of this
are
we
ran
cash
a
liberations of
take
Reorganization
Act,
the
are apt to be shorter than
the committee
scientific attitude
a
So
much for
on
January
and
March,
every
tion of
According to the usual
theory, the simplest way to run
a
compensatory
is
program
to
boom
times
times.
As
and
deficit in
a
-
BROOKLYN TRUST
COMPANY
pointed out, that
surplus is largely due to the in¬
flationary developments of the six
months preceding and it has had
a
tendency to check those infla¬
tionary
developments.
But
a
large, very vocal, fraction of
opinion is very much
intermediate
vocal
MAIN OFFICE:
177
NEW YORK OFFICE:;
Montague Street
26 Broad Street
y-
Brooklyn 2, N. Y.>
WNew York 4, N. Y.
j
!"
without
important is
that is
profession¬
questions hav¬
group
being
ally competent) on
ing to do with stabilization of
ployment,
duction
maximization
and
the
of
em¬
pro¬
of
causes
de¬
pressions.
Condensed Statement, of. C*>nditiony *June
^30,1947
)
/ There
sues
inflation
that
produced
it,
with reference to its effect
tween
RESOURCES
Cash
base
science
and
is-i
mythology.
138,435,842.83
6,762,764.80
~
_________
*
Loans and Bills Purchased
effect
of
other
action on the next depression, we
never talk in times of depression
about the effect of this, that or
the other action on the next
bojpm.
In
this,
that
the
or
of
time
prosperity there is a
tendency to shape all policies to
prevent the next depression, and
in the time of
depression to shape
policies with reference to the
all
depression.
current
anti-inflationary
So
we pursue
policies at both
ends of the cycle.
tion.
I
got
BOROUGH
Excessive
Fear cf Deflation
fear
to
come
depressions
more
nineteenth
The
inflation.
than
century psychology was just the
reducing taxes, increas¬
expenditures, raising wages
raising all kinds of income
and equalizing incomes.
All the
good-tasting medicines are medi¬
cines against deflation and all. the
bitter
medicines
are
medicines
anyway,
ing
and
So the tendency
anti-inflation medi¬
cine at both stages of
That
uation
brings
which
the cycle. ^
to a curious sit¬
economists have to
me
deal with at the
present time, thai
preventing depressions was to
simplify the income tax return so
people would understand it.
Another
the big business is not just as
important. A uniform patent pol¬
icy is also mentioned. If you take
the Bowles Report, you get the
thing in much more aggra¬
same
vated
Capital
1 000 00
against
long-run tendency to
depressions.
You
find
.
Surplus
.
$500,000.00
.
of
businessmen,
form
for
* As
war.
__$
8,200,000.00
——.—__
Cash
on
5,700,000.00
Cash
in
j 092 948 09
8
1947
205.000.00
224,789,623.57
-
Taxes, Expenses, etc..
1,362,852.82
......
$242,600,401.56
Pledged
as
Companies
Municipal bonds
Member New York
System
and
of
soon
anything you
to win the
the
as
is over,
war
ending depressions.
That is
element of the en¬
one
vironment with which the
econo¬
The second is
mist must deal.
a
curious predilection as to what an
economist must be.'" In Washing¬
ton
economist.
lawyer is an
any
Outside of Washington any busi¬
is an economist.
And in
nessman
both
places
journalist is
any
is
There
economist.
one
an
pre¬
requisite to qualify, he must speak
in words of one syllable.
Any¬
thing that is obscure is neces¬
sarily preposterous.
The curious
part of that is that,the current
tendency is to apply the opposite
criteria to a lawyer or a physician.
You dont'expect a lawyer to avoid
the
of technical terms.
use
If he
wouldn't have anyt use
for lawyers.
You would be your
own lawyer if the vocabulary was
did,
you
agree.
The
Court
by
15,428,993.85
Surplus
7,500,000.00
28,877,785.56
Undivided
5,746,149.83
538,990.29
Profits
5,118,577.23
Stocks
Eonds and
Loans
824,846.46
______________
on
Mortgages.
1,204,133.54
Collateral,
358,805.06
Bills Purchased—..
963,262.94
Estate.
.
Assets
645,000.00
318,998.83
—
51,211,032.13
Depositors
Checks Certified
—
13,187.23
Discount—
1,921.37
Taxes,
774,818.48
dous
91,818.41
standing
Association,
Insurance
as
system
they
proves
both
are
Immediate
is
■
*'
fundamental
more
a
preoccupation with the im¬
60,631,767.91
outlook.
As
Terborgh
technique for
judging the immediate outlook is
very dubious and yet it is much
has pointed out, our
it is
get
to
easier
a
sion
or
whether
group,
congressional
a
in
we
next
what
any
labor group or-a business
interested
them
Official Checks Out¬
60.631,767.91
to
of
split five-to-
any
can even
that
whether
Expenses and
Contingencies
Su¬
But. if two economists dis¬
group
Unearned
Reserves .for
Demand and Time
Other
Due
law.
in the United States
Deposit
500,000.00
Bonds
doubt
any
have
we
the
disagree with¬
may
difficulty and that is the tremen¬
'■
Capital
Other
criterion
of
Outlook
1947
*
the
is
members
creating
mediate
public
secure
there
that two economists may not dis¬
tions
to
required
Clearing House
Federal
good, just
way
a
Preoccupation With
1,145,214.61
Banks
will
Fall
interested
have
than
in
a
it
>about<
depres¬
is
talking
to
get
about
the fundamental condi¬
are
to
group,
talking
which
conditions
the
which
Act .refers—
make
possible
long-run maintenance of £
level of employment, pro¬
duction, and so on.
the
Our
main
able to
«
Reserve
*'
.
Hand
U. S. Gov't. Bonds
Real
United States Government
and State and
RESOURCES
N.Y.Statc & City Bonds
Contingencies...............;:;:
purposes,
June 30,
LIABILITIES
cn
t
®
i
tendency,
same
war
was
flagrant
as
want is
you
during the
as
agree.
$538,000.00
•
^
pwi
the
but
Anything
You
too.
won't find it quite in
wrong.
$7,500,000.00
.
.
Statement at the close of business
Capital
Federal
it
report
Bradstreet's
out
.
'•
One of the Oldest
Trust
find
You
port.
whether
Undivided Profits
LIABILITIES
are
the Nathan Re¬
in Dun and
on the reac-'
the same thing in
a
as a
a
chronic
There
and
unofficial OPA
an
of stabilizing the economy
means
tions
the estab¬
including
form,
lishment of
four.
567,111.28
dennGf ** .$l6,374'195-85
deposits
for
other
the
is
however, is no explana¬
to why encouragement to
There,
tion as
law.; They
$242,600,401.56
for
mentioned
one
encouragement to small business.
preme
OF BROOKLYN
2,500,000.00
Other Resources
r!op
Reserves
business¬
a
then everything we want is a way
wevhave
342, 344 and 346 FULTON STREET
'475,410*93
Buildings
Dividend payable
July 1,
letter from
a
recently in which his formula
were
Kings County Trust Company
30 278 277 5Q
Other Real Estate___
Undivided Profits
see
an increase in unemployment re¬
lief, public works, river develop¬
ment, school lunches, a farm pro¬
gram all as measures of stabiliza¬
Finally,
2[433i462*79
Bonds and Mortgages
Reserve for
the Pres¬
the things
through
go
report and
easy.
Municipal Bonds
Other Securities
do
to
for
the
current
$ 61,146,531.34
U. S. Government Securities
State and
bitter
The present tradi¬
he recommended, you find that
they include a housing program,
but
on
Hand and due from Federal
on
be
to
was
our
your
be¬
One is the dilemma to which Mr.
Reserve Bank and Other Banks
Bank
„
borderline
the
on
had
tradi¬
that
The
ground.
good.
you
man
depression they anticipate in the
last half
of
1947.
Should
we
is to take the
allot of-difficult
are
here
If
ident's
the
on
against inflation.
Science vs. Mythology
f
any
standpoint
grandparents
our
medicine
alarmed about it, looking at it not
with reference to its effect
might be called the ideo- opposite of that in English-speaklogical situation- which we - have, -ing.. countries. .It is party due tc
to work with; the state Of think¬ the fact that on the whole most
recommend
for dealing
ing of the general public and of people
professional economists
(and of with deflation what they are for
that
other
you any
bad
he
what
r.
maximizing
a
year.
the
from
all
would be equivalent to $9 billion
those
have to work
more
having
be something that is desirable on
in
and
the organizational
with./'I- thftik
benefit
of
unemployment must
be accepted as
taxes
That is partly because
we
stabilization
at
recommendations.
situation which
applying to ail-suggestions
regard to this problem of
is that anything to
is
surplus at a rate which,
allowing for the concentration 01
to talk in times of boom about the
into
of the
getting
we
year
the
President
at the other end
jected
what
during
policy on forecasts or
conditions?
If we
leave it to work out, its automatic
effects will have nothing to do
with the forecast; its automatic
effects will depend on the imme¬
diate past.
Moreover, while it is very easy
a
avoid
those
that
wmch
tainly, no party wants
a
de¬
pression.
But the fact that the
of the
There are
dealing with matters
that are the subject matters of the
Economic
Report and none of
Committee
we
far.
so
great disposition on the
part of both the committee and
the Council of Economic Advisers
house
inflationary movement, or whether
the Ways and Means Committee
should disregard the whole ques¬
the ground that
There is
aspects
doing.
are
serious
each
Committee.
on
lic
iact
public
.
arise, though it has not
at least eight or 10 committees in
economy, or a surplus to check an
tion
been
Complications
fact that many of the issues with
which such a
committee should
deal
are
inevitably in politics.
committees
that
that
of
further complication
a
which will
the
out
on
the
he
welfare of mankind than the
winning or the lossing
particular battle.
to
Congress,
to noble as
research, and to advise the
whole
program.
For
one
of Congress
•thing, the other committees of
that are dealing with matters that
Congress, as was to be expected, I
affect economic stability.
think, have not yet begun rush¬
That means, of course, in theory, ing to this Committee for advice
carry
than
tomorrow
the problems of
military science which are prob¬
ably more important for the longrun
of the criteria wh.ch the pub¬
une
present-o^.
Take tne
problem of j have a relatively stable tax sys- tion is that it has to be sweet to
the battle (tern which will yield a surplus in do you any good.
winning
or
wt
with-tne
future.
very
Obvious
in the Committee a threefold per¬
formance: to interpret the Pres¬
all
to the
about solving
is
question
giving him enough to eat
or
that call for imme¬
attention
avoiding
needs to eat; it
business of this
tend to reduce
tasks
that threatens
an
unemployment.
production,
employ¬
ment and purchasing power.
In
other words, the Act contemplates
the
diate solution, just as a general in
time of war is likely to spend
man
the
give
more
committee to pass on the
whether
maximum
ident's
the question of how much
unemployed
gress which deal with legislation
relating to the Economic Report,
looking
stability
accelerated infla¬
an
of another committee to pass
ness
guide to
of
con¬
reference to unemploy¬
relief, it would be the busi¬
ment
serious studies and thus to formu¬
its own
be
With
a
late
would
economic
oeen
first
attention
to
tne
things that are most pressing. So
there is a tendency for the longrun task to be put aside in favor
tion.
whole, not to deal exhaust¬
ively with its specific recommen¬
dations, and the other to make
as
time
a
to
conducive to
oeing a recurrent duty
uie President's Report
one
such
and
aeai
tne
it is inevitably the tendency
to
at such and such a rate and such
Committee's Two Main Duties
have
sessions
recent
some
snouia
office
is
our
only
office
and
makes
avail¬
its depositors every
known to modern
facility and accommodation
banking. Make it your banking home.
Corporation
Member
Federal Deposit Insurance
Corporation
high
The Act declares that it
is
the
continuing nolicy and responsibil¬
ity of the Federal Government to
use
all practicable ipeans,;
ancJisfc.
<
forth, to foster, promote the free
competitive enterprise, under con¬
ditions which will afford useful
curtailment
employment opportunities, includ¬
ing self-employment,
for those
able, willing and seeking to work,
and to
promote maximum em¬
in
That is a
but it is
ployment, and so on.
man-sized
also
a
assignment,
assignment that involves
an
COMMERCIAL" & FINANCIAL CHRONICLE
THE
Number .4608
166
Volume
good deal of thinking and talk¬
ing about rather abstract and re¬
problems.
It is a dozen
times easier to get an audience
interested in the question of when
the next turn in the business situ¬
mote
at
where,
expansion
it
we cover
enough
ulus
weigh
the
negative
stimulus
the
two
Committee.
They
think it is
entirely too modest.
This
the
is
Frank K. Houston,
transfer
this
depression is going to come
elimination of the irrelevant
vided
has
been
for three
the
around
corner
than it is to talk
conditions that will
prevent the coming
years
about
the
foster
and
The fifth problem with which
have to contend is the utter
we
thinking
even
public
of
consistency
of
lack
not
among
intelligent
people as to the character of the
forces at work. Let me give you
three or four illustrations.
One is
analysis of the effect
the current
high wages in time of boom—
that wages should be advanced
because the cost of living has
of
Progress in medicine
strated that
to
drive
In time-of depressions
up.
they claim that wages should be
advanced in order to provide pur¬
chasing power in order to bring
the depression to an end, and if
you are thinking of a depression
>sometime
in
the
future,
they
should
be
advanced
order
in
to
^postpone it.
All stages of the
cycle call for the same remedy.
Take the liquid assets,
the sav¬
ings of the community.
If the
community is accumulating liquid
assets, it has a bearish effect, be¬
cause
they are creating a defi¬
ciency in the market. But if they
are using up their sayings, that is
a
bad factor because the savings
will be exhausted and the
Vill collapse.,
/ ;
The
markets
C
interest rate,
©
which used
to be regarded as the panacea for
dealing with the problem and
which we have the same diffi¬
culty in utilizing as with fiscal
policy, is not; regarded in that
light now.
Now it is generally
agreed that high interest rates are
no
good as a way to check a
it
was
did
demon¬
beating the tom-toms
devils out of
the
sick
a
not
effective, or when
bleeding went out of fashion, but
the
was
procedures
nevertheless
was
a
step in advance... It
that
it
the
approved
of $5,000,000 from undi¬
profits to surplus account.
The capital structure
was
to
was
sulfa
was a step
much.* easier to take than
develop penicillin or the
or the anti-toxins. In
drugs
judgmentj
my
where
the
lem
the
is
we
are
at a
stage
immediate prob¬
most
elimination
houses
$25,000,000 capital
stock, $75,000,000 surplus and over
$7,000,000 undivided profits. This
is the seventh increase in surplus
account since
1936,
,
,
.
of the
ir¬
Chemical
Bank
&
Cash
on
hand and due from banks
to
$325,011,456
com¬
of United States Government
forecasters
as
the remedies that have
no
groups
of
relation to
the problem.
elimination of the
The
*
vant and the
task.
misleading is
irrele¬
a
major
An example is the doctrine
that by raising wages (and this is
which originated in business
one
■circles, although it has been taken
over
by others with great en¬
thusiasm) you can expand the
market and thereby increase the
volume of activity.
Of course,
this ignores the fact that you raise
costs by exactly the amount you
expand the market, so it is at best
a washout and may be worse than
a
washout because bread cast on
the waters doesn't all
back.
come
Another
example is the fallacy
that you can decrease unemploy¬
ment by making it more attrac¬
tive.
Such remedies represent a
beating of the drums to drive out
the devils and require the same
sort of
analytical treatment.
that this
is
boom, but at the same time low
It
interest rates are a great stimu¬
'iu £
Three Basic Approaches,
This is not a counsel of despair;
it is just,an indication of the kind
of a setting in which we are try¬
ing to formulate a program. As I
see it, there are three basic ap¬
proaches among which we have
to choose. We don't have to choose
one to the complete exclusion of
the others, but we have to choose
from the standpoint of emphasis.
task
whic]h economists, business¬
men,
Street
through
new
a
land¬
upon,-and he divided the
into iy2-inch squares
bank's map
—
each
units,
two
and.. has
becoming
square
one
Braille page llVfe inches wide and
11 inches deep. These pages have
for
for 45 families in one,
three-room
been
fully rented to veterans.
feature
curities
as
The
called
vides
Trust
inate
various
Street.
one of the
bank's volunteer transcribers was
the
of
use
a
blind
the
person.
In the exhibit also there is
a
copy
of "The
se¬
to
$463,613,551
against
$471,050,209; bankers' acceptances
and
call
loans
to
$84,155,716
against $51,087,881; and loans and
discounts to $284,925,140 against
$309,746,354. Net operating earn¬
ings forythe second ^/^uarter'^-iol
1947
amounted to
$1,782,938 as
compared to $1,703,362 for the
preceeding quarter.
Net profits
and
recoveries
securities
on
amounted
to
$349,797
against
Capital was unchanged
at $25,000,000 but surplus was in¬
creased by $5,000,000 to $75,000,000
and undivided profits were
$7,289,613 against $9,150,365
on
$497,557.
March
31st.
earnings
indicated
The
the
of
will have
an
illuminated
the
lated
over
also
an
clock.
the
Lighthouse—the
Residents
have
$72,000,000
Third
on
70th Street in 1928.
of
accumu¬
the
at
Bank's local office which
was
Avenue
es¬
and
The Bank for
Savings is the oldest mutual
sav¬
ings bank in this State, and will
celebrate
its
128th
birthday on
July 3. Its Main Office is located
photographs of the blind at work,
together with articles made by
the m—baskets,
brooms,
handwoven blanket and rugs.
The ex¬
hibit
comprise
Map
York,
sections
of the
New
on
of
Savings
40th Street,
the
York
be
at
Dime
Union
the
■'■.'
Alfred
an
Bank of New
will
Savings Bank until the middle of
July.
An unusual exhibit in the win¬
of the Union Dime
New York
showing
Association for the Blind,
at Fourth Avenue and 22nd Street.
dows
exhibit in the windows of
electrically operated,
neighborhood
tablished
A
the
bank's
Muller
Trust
Brooklyn, N. Y. at
the
appointed
Vice-President
Assistant
Brooklyn
was
executive
Company
a
of
of
meeting of
committee
of
the
Board of Trustees of the company
Subways
(Continued
on page
38)
net
bank's
2,500,000
shares
(par $10)
amounted
to
$0.71 per share for the second
quarter of 1947 as compared with
on
$0.71 in the first quarter.
/ •_
:h
Guaranty
*
.
Trust
*
Company
New York announced
of
June 26
on
the appointment of Madison
H.
Haythe as an Assistant Treasurer,
labor leaders and everybody
lus,
•
seems
Could
to
me
•X)ne Hundred and Thirty-Five
Years of Banking" by the National
City Bank of New York is dealt
this) that the setting
Council of Economic Ad¬
visers and the setting up of a
Joint Committee on the Economic
with
the
institution
staff of three mem¬
bers no matter how able that staff
may be, will result in the solution
of a problem with which the best
the
booklet says:
and
one
wrong about
up
of
a
Report with
struggling
been
for
minds
generations.
I hope I am
wrong in saying that on the calcu¬
lations of probability it isn't like¬
ly we will do it by Christmas, but
ployer.
In
'30's,
the
ployers and too many would-be
employees, we felt that the way
to deal with it would be to make
employees more
position of em¬
position- of
three
I
am
pitting irk,that sort of dis¬
when we claim*^ in advance
didn't have enough would-be em¬
the
have
a
climate, which would
be generally interpreted, I think,
as the maintenance of a level of
profit high enough to encourage
somebody to want to be an em¬
so
that if we
do not have it done, at least you
won't claim we said we would.
William R. Staafs Go.
this field.
FRANCISCO,
CALIF.William R. Staats Co., members of
SAN
the Los
Then there is
this compensatory
Angeles Stock Exchange,
announce
that J.
L.
Osborne
has
approach which Mr. Terborgh re¬ been elected Vice-President resi¬
to in the fiscal policy.
It dent in San Francisco; and R.R
can be fiscal policy, or it can be a
Hodge continues as Manager of
central banking approach, to in¬ the
San
Francisco
office,
155
duce- i expansion of
expenditures Montgomery Street, a post which
in time of deficiency or contrac¬ he has held for the
past six yearsi
tion in times of boom.
Or you V Mr. Osborne has a background
ferred
can
bring
about
more
equalities
a
booklet covering the
history over that period
years.
Citing the founding of
of
"This
June
on
16, 1812,
two days before the
war with England.
was
declaration of
There
were
18 states in the Union
and New York
the
United
Alexander
unable
to
States, established by
Hamilton, had been
renew
its
charter
income* when
you
want
Since 1859
OUR SERVICES INCLUDE:
be¬
of the political disturbances
the
time, and Congress had
cause
of
ACCOUNTS
•
SAVINGS
•
MORTGAGE LOANS
.
CHRISTMAS CLUB
.
G.
•
S4FE
.
MODERNIZATION LOANS
•
SAVINGS BANK LIFE INSURANCE
forced its
New
liquidation. A group of
York
businessmen, feeling
need
of
bank
a
place, secured
a
to
take
its
charter from the
State of New York and established
City Bank of New York."
A map
accompanying the book¬
I. HOME
LOANS
let shows how the bank "grew to
be first in world-wide banking,"
with
today 46 active
Noting "what
branches.
overseas
lot has
happened between 1812 and 1947,"
it
is
observed
that
96,373 people lived
Island.
in
on
DEPOSIT BOXES
a
1812
only
Manhattan
Now the Bank's customers
2%
number many hundreds of thous¬
ands, both in Greater New York
and in
commercial
every
the World.
area
•
SAVINGS BANK MONEY ORDERS
Latest
Interest
Dividend
of
*
of 25
years' experience with lead¬
The
matter
in
the
booklet
ing
national
underwriting
and
higher rate of consumption and brokerage firms both in San Fran¬ sketching the bank's history has
been
reprinted from the June,
more inequalities as a check on a
cisco and New York.
1947 issue of "Number Eight," the
boom.
This is another method
City
Bank's
employees'
House
which is more likely to be fol¬
Heller Opens Branch
Magazine.
\. ■\
lowed at one end of the scale than
•; •
J'-#
■ *
-?
JACKSON, N. H.—Stanley Hel¬
at the other end.
Compensation
Tenant ^occupancy of the new
ler & Co., members of the New.
Js an attempt to cover up all mal¬
adjustments. ' If we have a situa¬ York Stock and Curb Exchanges, 4-story garden apartment of The
Bank for Savings of New York at
tion in which any fundamental are opening a seasonal office at
the northeast corner of 72nd St.
factor is tending to bring about a Wentworth Hall.
of
Serving Savers
City had a popula¬
The First Bank of
tion of 96,000.
the
Elects Osborne, Hodge
in
bank's
the
attractive and the
ployers still less attractive. That
is another example of the back¬
ward reasoning that gets by in
Banking Department.
which
on,
The first is the maintenance of a
favorable
Main Office
might be set as a short-run goal.
I have no faith (I hope I will be
agree
\
loose-leaf book
Weekly News," a Braille
new
apartment is newspaper published by the Na¬
Company of New York reported
the tower inspired by the Govern tional
Braille Press,
distributed
as
of June 30, 1947, deposits of
free and mailed without postage
nor's residence at colonial Wil¬
$1,168,958,598 and total assets of
$1,293,093,043
compared -respec¬ liamsburg, Va. It will contain a costs, by a Congressinoal Act of
bee hive, used by the Bank since
1912,
to
3,800 - blind
persons
tively with $1,114,939,997 and $1,238,076,886 on March 31,
1947.; 1819, as a symbol of thrift, and throughout the world, There is
The
soothsayers."
We have to elim¬
unfounded claims of
brownstone
Boston,
hand transcrib¬
ceived, Mr. McMahon,
been bound into
and
pared with $282,009,919; holdings
"economic
old
72nd
on
72nd
on
to as
the work of the
and
Press of
a
ing division. When the request for
a
Braille Subway Map was re¬
scaped garden and terrace. It pro¬
j -
„
office/now
apartment house has its entrance
amounted
well
which maintains
Bank's branch
Avenue
of the bank
relevant, what Mr. Kelly referred
the
National Braille
The plot was formerly occu¬
pied by empty tenements on Third
consists of
now
July 1.
ber.
elimination of those harmful
-
come
when
stop
man
of crises.
;
edies.
rem¬
26
of
scheduled
was
at Third Avenue and 70th Street,
will become available in Septem¬
June
un¬
earlier
received
one
Space in the building
for the
that
*
and Third Avenue
that the Board of Directors of the
ation will take place or how soon
,
Chairman of
for
on
most
the map into Braille.
the Chemical Bank & Trust Com¬
Bank
the
wanted
CAPITALIZATIONS
negative approach,
is always criticized as not
being constructive. I refer to the
which
but
East Lynn, Mass., who
permission to transcribe
The original
request for a Braille Subway Map
came
from
a
young woman
in
New Jersey. She appealed to the
hon,
Bankers
and
OFFICERS, ETC.
REVISED
pany of New York, has announced
may
was
for 'its
requests
many
this year from Charles E. McMa-
NEW BRANCHES
NEW
positive
methods of approach.
There is a
more
modest approach which I
am
tentatively suggesting, and I
am
not speaking at all for my
are
usual
CONSOLIDATIONS
in
\
had
Subway Map,
News About Banks
out¬
will
other fields.
.Those
has
by pouring
that the stim¬
fields
37
transcribed into Braille. The Bank
else¬
up
money so
certain
in
point without
one
corresponding
a
(37)
a
FULTON STREET AND DEKALB AVENUE
Bensonhurst: 86th
Street and
Flatbush: Avenue J and
19th Avenue
Coney Island Avenue
.
BROOKLYN, NEW YORK
MEMBER
FEDERAL
DEPOSIT
INSURANCE CORPORATION
COMMERCIAC & FINANCIAL CHRONICLE
THE
of June
ant"
staff
of
Rochester Trust Co. of Rochester,
following the merger of the
Bank in 1929.
Since
1936 he has been Manager of the
Co.
Albany,
of
He was
June 22.
bank
the
N. Y., died on
76 years of age.
he
of
served
*
*
ing President in 1925. He retired
as President in June,
1946, when
reached the age of 75 years.
Boston, Mass.,
tion of John
served
from
Stevens
the
ment
Tuck
he
Co.
the
of
retirement
Society
York Savings Bank Association.
Conn.
Eugene
*
Vice-President
Assistant
the
of
Lincoln
1934
i
for
He
Savings
Clerk
in
he
served
as
ration
a
*
promotion of three em¬
ployes to executive posts in the
Trust- Department of the Provi¬
dence Trust Company of Phila¬
was announced on
Hartford,
institution
1912, and in
estate
•
Jr.,
planning;
Paul W. Brown,
Assistant Trust Invest¬
now
ment Officer, is in charge of ac¬
count review work in the Invest¬
ment
Department; John H. Web¬
ster, 3d,
named
was
contained
was
in-
*
'•
Assistant
an
Trust Officer.
of
pany
FULTON TRUST COMPANY
OF
NEW
YORK
Philadelphia
June 30 that
it
announced
would
.Northeast, Title
open
a
Office: at
7046 Castor, Avenue, in charge of
M.
Holmes, on July 1.
Joshua
This will
of
bring to six the number
neighborhood title
Land
Title
offices.
149 BROADWAY
(Singer Building) NEW
CONDENSED
the
Idaho
First
on
opening
on
May
as
National
15,
of
1867, operating then
under
now
Bank
March 10, 1867, and the
of the bank for business
the
second
oldest
national bank charter west of the
Rockies.
Christopher W. Moore
was the founder of
the bank and
he was joined in the
organization
by B. M. Du Rell. Following the
death of Mr.
Moore, his son Craw¬
ford Moore, became President in
1916. In 1936 the bank's
name
corporate
changed to The Idaho
was
First National
the
Bank.
bank
On
had
July
capital
a
$80,000 and total
$136,109
and
its
1,
of
resources
of
expansion
is
States, but settlement
due
ance
of the
bal¬
India
from
more
the
,
United
States than the United
States pur¬
chased from England. In this
case
he payment of India with
sterling
on
England settled the bal¬
to
the
satisfaction of
all
three countries.
Similar transac¬
tions were settled where several
countries
involved
were
the
currencies
and
it
much
made
were
Cash
on
dend
$
Cash
on
^377,237.56'
7,448,422.43
276,902.10
Deposit in other Banks
U. S. Government Securities
State and
^$32,321,032.68
24,218,470.59.
612,407.96
120,000.00
Stock,.,....,.«
Other Securities
Loans Secured
by Collateral.
Bills Purchased
Overdrafts—
.
j . % .
...
22.78
Real Estate Bonds and
stock.
retired
Assistant
as
6,588.16
Mortgages
(Branch Office)
97,229.31
50,000.00
156,630.02
;
Accrued Interest and Other Resources
Cashier
the Marine National
Exchange
of
Bank of
Milwaukee, Wis., accord¬
ing to the Milwaukee "Journal" of
June
20,
which
started
as
stated
National
a
that
he
with
messenger
the
Exchange
bank
in
1898, when the late Grant Fitch,
of Eliot G.
Fitch, present
President of Marine National, was
father
a
Cashier of the institution.
world
payments
receipts.
Due
Depositors.......
;..
,V;
Payable July 1, 1947.
Taxes, Expenses and Contingencies...
Capital.
$2,000,000.00
Surplus
2,000,000.00
.
§33,035,843.88
.
Dividend No. 171
30,000.00
Reserved for
Undivided Profits
370,013.62
1,335,447.00
5,335,447.00
$38,771,304.50
BOARD
OF
john adrian
edmund
P.
Stanley A. Sweet
Franklin b. Lord
Russell e. burke
1898, the inauguration
of
Theodore
under
t A >_
*
t
*►»
*
*
• ^
in
the
the
pictures
nent to
the institution which
came
national
a
*
The
TRUSTS
&
BANKING
bank
*
American
in
be¬
1902.
*
.
Exchange^ Na¬
St. Louis, Mo.
has
increased its capital from
$240,000
$340,000
effective
June
17
to
a
000
*
of
name
along with other incidents perti¬
Through
t,
Roosevelt
Charles s. McVeigh
tional Bank in
PERSONAL
the
featured
Frederick S.Moseley, Jr.
IN
as
The organization of the bank
1897
bank
the
stock dividend of $69,raised
*
'•
■
■
recently
promotions, it
seven
in
:
the
San
"J
an¬
was
|
Francisco
"Chronicle" of June 12, whose Fi¬
nancial
Editor,
reported
Sidney P. Allen,
advancements
as
the
follows:.
"Four officers promoted to As¬
sistant Vice-Presidents were Cash¬
ier Frank M.
Ratto, Assistant Sec¬
retary
Clarence B. Howell, and
Assistant Cashiers Claude J. Hirs-
chey
and
George
Ehrenpfort.
Newly
designated^ Cashiers are
Joseph Beresford, Joseph D.
Bug¬
ler and Harold. G.
Muller."
currencies and
trade restric¬
are
accentuating the world
shortage is important for
statesmen and businessmen in this
country
understand.
to
countries want
our
chemicals.
coffee,
food
We
want
their
tea,
rubber, wool, and
sugar and many of their raw ma¬
terials that we are unable to get
in adequate supply, including tin,
zinc, copper, lead, and a great
variety of woods and other raw
materials
to
feed
foreign
factories.
our
purchases
of our purchases from abroad
running at the rate of $12 bil¬
cess
are
the, capita'
K-
Some of this
excess
of for¬
purchases from us will be
paid for from the expenditures
of
American
tourists
abroad,
riddle
is
be
to
of
solved
until
our
from the
equal our payments to
the rest of the world and keep this
flow of foreign trade
going in
order
to
maintain
employment
and production and stability
of
trade is a major economic prob¬
payments
world will
lem
on
nomic
which
our
continued
prosperity depends.
short-term
The,
rest
of
world
the
of
needs
for
eco¬
-
the
American
food, clothing, medicine, and prorductive capital: must largely ap¬
pear in the form of exports
of
these goods based upon credits we
extend either
agencies
these
or
through government
private loans. Some of
short-term credits
must
of
necessity be gifts and the Ameri-.
can
-
wanting when
world
people
will
not
be
found
people in the
any
in
are
need
and
that
of
some
have
we
adequate surplus supplies.
is considerable
danger,
Therh
however, -r
the
needs
of other
lead
to
exports
from this
country that will create
countries
will
shortages
here
crease
and
unduly
!
in-
prices and costs.
The
Real Needs Are
Long-Term
Productive Capital and A
Restoration of. Order 1
-
v
-and Free- Markets'.-'
c
The
delay
political
ments
in
and
in
restoring
economic
which
the
stable;
govern¬
people
have
can
confidence in many coun¬
tries has
already been very costly
and the longer
this
delay persists
the greater the costs
be. As already
are
going to
indicated, this lack
of economic order and
free
kets for
one
of
many
goods
the
and
important
from:
mar¬
currencies
factors
countries
parts of the world
is
in
in.
needed
food supplies and useful
produc¬
tive equipment. This condition is
a
major factor in creating dollar
shortages.
Foreign
supplies,
machinery, motor vehicles, cotton,
and
Shortage
withholding
This account of how inconvert¬
ible
balance
Member Federal Reserve System and Federal
Deposit Insurance Corporation
SPECIALIZING
satisfac¬
'
'
•,
convert their
dollars
War in
President
wise
Walter N. stillman
into
gifts, Etfid loans, but just how the
De Coursey Fales
Russell V. Cruikshank
countries which
these include among other
things,
the start of the Spanish American
City, Kansas,
Commercial State Bank by P. W
Goebel and C. I. Brokaw is like¬
Charles s. brown
henry W. bull
torily.
on
lion.
Clark
charles scribner
currencies
United
eign
Kansas
Charles j. nourse
O'Donnell Iselin
Stephen C.
the
Canada cannot
owe
the
But unfortunate-
in
in
Morris, President
e- Townsend Irvin
Eernon S. Prentice
of
of
many
:*
reminiscing pictures presented
in a /booklet, depicts various
hap¬
penings during the half-century;
etc.
rogers, Honorary Chairman
Arthur j.
Bank
State in 1915, the first
airplane
flight around the world in 1924
larkin, Chairman
y
with
favorable balance
a
its
in 1901, the resignation of William
Jennings Bryan, as Secretary of
DIRECTORS:
balance
States but
pres¬
unfavor¬
an
from the
United States for this year in ex¬
Recording
"Memories
of
50
Years," the Commercial National
V \ •*;v
nounced
how
balanced
At the
time Canada has
The
$38,771,304.50
LIABILITIES
*„
„
Calif.,
indicated
convertible
country bought from
country as long as the
another
total
tions
Following 49 years in the bank¬
ing business, Henry H. Van Male
former
$6,565.38
Unsecured
Real Estate
3,777,753.37
1,229,663.00
400,000.00
.*
Secured
en¬
$200,oqo and the sale of
new
•*
.
Francisco,
one
dollar
has
Municipal Bonds
Federal Reserve Bank of New York
of
$100,000 of
Deposit in Federal Reserve
Bank of New York
The
larged capital, effective June 19,
came about
through a stock divi¬
RESOURCES
.A
Cash in Vault
y
because
difference
no
world payments.
of
Currency.
in
(Continued from page
2)
was very
simple
ordinarily England pur¬
because
chased
able
troller of the
office
Parker S. Maddux, President of
the San Francisco Bank of
San
The Dollar
An increase of
$300,000 in the
capital of the South East National
Chicago, 111., raising it
from $200,000 to $500,000 is re¬
ported by the Office of the Comp¬
STATEMENT, JUNE 30, 1947
j
date, at
$109,548,587 and total resources at j
$113,753,081. In addition to the
head
.
of
ent
YORK 21
that
on
a
total world
YORK 6
(Bet. 77th & 78th Sts.) NEW
reported
IJoise< the bank
booklet commemorating its' maintains
branches in 15
other;
anniversary, the Idaho First towns and cities, as well as the
National
Bank
of
Boise, Idaho Boise Trust branch in Boise. John
notes the organization of the bank A.
Schoonover is the present Pres¬
on Nov..
17, 1866, the issuance of ident of the bank.
its Federal charter under
the name
In
Bank
1002 MADISON AVE.
were
80th
bills
Land Title Bank & Trust Com¬
new
$1,700,000 and undivided prof¬
its of $504,494. The total
deposits
•
ance
on
condir
of
the-
rency.
jjs
of
1, • 1947," which re¬
veals capital of
$2,000,000, surplus
June
*
its statement
Jan.
on
June 27
by' W. Logan MacCoy, President
of the company following a meet¬
ing of the board of directors. John
J. Buckley, appointed Trust Offi¬
cer,
will continue his work in
been
Chief Teller. The Hartford "Cour-
j
The
;
j
shown in
tion
23, of the Office
Comptroller of the Cur¬
of. the
1867
*
,
He
advanced to the post of
was
He held
invest¬
has
of
entered the
Junior
as
Witt,
De
N.
Smith,
named Vice-
was
board member."
Bank
elected Assistant Treasurer of the
Second Vice-President of the New
*
1928, he
He also had served as
Secretary of the New York Clear¬
ing House Association. After his
joined
department.
L.
when
years ago.
1938
the
Clarence
and,
years
President and Secretary.
retary
#
in
delphia
and Treasurer of Group
Savings banks and later as Chair¬
man
of the group and
also as
52
insti¬
same
that post until his retirement five
Army for five years
attaining the rank of major be¬
fore his discharge.
also noted that he served as Sec¬
for
*•
in
worked
to
on
a series of mergers it be¬
the Chemical Bank & Trust
came
The
School
Shawmut
research
in
was
"Times-Union"
The
National
where
Association, publishing in 1915 the
first history, which
he dedicated to the memory of
Association's
hi$ father.
Amos
Business Administration he
Secretary of^the New
Savings Bank
as
the
paper
quote went
we
through
of. Belmont
following his graduation in
State Mutual
York
tution
the elec¬
Officer.
The
York.
New
"He worked for the
Mr. Wallace graduated from Dart¬
mouth College in 1935 and that
original incorporators of the bank
and
served
as
Secretary
and
in
say:
Boston "Herald" of June 28, from
which this is learned, notes that
According to the Albany "TimesUnion" his father, the late Albert.
Parsons Stevens, was one of the
B.
Wallace
Trust
age.
from which
*
announces
Assistant
as
he
of
years
Walter S: Bucklin, President of
National Shawmut Bank of
through various positions, becom¬
Frederic
Shaw, retired New York
ark, N. J. on June 20.
Bank
as
Rochester
bulletin,
.
banker died at his home in New¬
the
Treasurer.
*
Bank
entered the employ
in 1888, and rose
Stevens
Mr.
of
Samuel
.
*
*
Board of Governors.
former
President of the National Savings
Bank
In all departments.
He was 70
According to the
Newark "Evening News" he be¬
gan his banking career as a mes¬
senger with the Ninth National
Counsel
*
Stevens,
Bliss
Frederic
Rochester
$300,000, arid
by the sale of
stock, bringing the
$340,000. This in¬
followed
was
formation
1926
in
Chapter,
American Institute of Banking, for
two years, and from 1930 to 1933
was
a
member of the Chapter's
that
states
company's 26th Ward Office.
«
bank
as a
Junior Clerk and since has worked
He was
22.
the
of
ploy
that Mr.
De Witt, a veteran of World War
I, had been a member of the bank
organization for 27 years. It also
Mechanics
*
June
on
years of age.
The
"Times-Union" reports
Trust
Brooklyn
with
Y., died
49
1912, and
April,
in
Brooklyn
continued
N.
to
$40,000 of new
capital up to
also states that Charles
Hudson, who has been pro¬
moted to the newly created posi¬
tion of Auditor entered the em¬
(Continued from page 37)
Mr. Muller joined the
of the old Mechanics Bank
$240,000
this
W.
i
June 26.
Thursday, July 3, 1947
is learned,
News About Banks and Bankers
on
this
from which
26
from
to
tt,
While every
country is entitled1
have any kind of
government
its
people prefer
as
long
as
that
government is not a menace to the
rest of the world the
people of the
United
States
and
every
other
country have the right to say un-i
they will risk5
their loans and capital. A
country
seeking to borrow the American
der what conditions
taxpayers'
dollars
through the
agencies, or seeking
private lenders in
this country, or
hoping to induce
private foreign capital to develop,
.
government
to borrow from
production in their country should
certainly establish an economic;
and
political environment that'
will create confidence on the
part
of lenders and the owners of
capi-:
taL- Money
product
People
saved
of
and
the
who
are
capital are thei
savings of labor.-
have
timid
sweated
about
and
risking,
,
i
their savings in countries or in
enterprises where the rights ofji
private capital are not adequately,-
insured and freedom of
enterprise protected. By this time it would
seem
that
there .are
plenty ot
skilled
politicians, economists, and,
technicians, in every
country in the world who know
the necessary environmental con¬
productive
ditions
to
restore
confidence and-
induce
production, at
efforts.
Until economic conditions-
that deserve confidence
lished
maximum,
are
estab—v
private capital will natur- r-
ally seek
an
outlet, in the safer
employment of
countries
^
political and
f HE COMMERCIALS FINANCIAL CHRONICLE
Number 4608
Volume 166
economic
Holland, Denmark,
as
Fin¬
land, Belgium, and Norway, which
have made the best of resources
hand, restored stable curren¬
cies, set up stable governments,
and made progress at production
with the tools and equipment they
had will find it not too difficult
at
get dollars if they need them
capital from private savings
to
or
and
their future
tegrity.
The
-
confidence
have
who
,;:v
the .United
in
producers
States
in
productivity and in¬
;■ ■;
rates
slow
of recovery in
such countries as Greece, France,
caused by the de¬
and China are
lay in restoring
we can
will
The small countries of Europe,
such
best help people who
help themselves and whose
plans of using our capital and
nelp are so well laid that future
dollar shortages will not likely
recur and present loans will be
repaid. From a long-term point
of view capital investments are
to be preferred to loans.
They
are safer for the people of both
countries.
Capital invested in a
foreign country has no maturity
date when that capital is machin¬
ery
and equipment financed
through equity ownership. This
capital must be productive if it
is to earn a living. Only a small
percent of profits in the years
when profits are made are ever
transferred back to the country of
origin. The capital available to
that
environ¬
ments-are more reassuring.
ing public just how free markets
domestic
and honest monies are to be re¬
stored and
the restrictions im¬
wide-spread unemployment.
It is tragic, that while so many
of us are willing to
sweat, and
work and produce to
keep the
millions overseas, who again face
hunger and freezing this coming
winter, that w& are cramped with
posed
between
trade
on
these
all
factors in creating
shortage in countries
that want to buy from the United
are
areas
the
dollar
the United States and
If
States.
England
Sterling
the
and
Bloc
frustration
countries do not get together and
up sound long-term
free markets, it is
difficult to
more
tried and
will
producers
can
farmers
•
is a handicap to
the
recovery
of the whole of
Europe.
The costs of occupation
could be greatly reduced by has¬
tening the restoration of political
and economic conditions in Ger¬
many
which would encourage
production and capital invest¬
ments.
Germany
is both the
tion in Germany
market and the largest
producer of goods for markets in
largest
Europe.
confidence
which is
"economic
their Standard
1
restore
living.
the risks involved.
addition
In
and
capital,
to
American
American
that
"know-how"
have
we
de¬
veloped, the people with these
techniques would quickly emi¬
grate, for
time at least, to for¬
a
capital eign countries that would offer
private
idle rather than take
now
loans
technical
them productive opportunities. II
these products and the skills that
produce them are available, why
is it not worthwhile for foreign
countries to set up
conditions to
developments
and
production
in
their
own
In fact, many of the
vironment and protection to pri¬ countries?
people
who
have
brought
to
vate property rights are restored
and "know-how" will go
skill
to
foreign countries and restore their
production if an economic en¬
to
as
so
the
hold
American
.
to
confidence
investors
and
of
techni¬
similar
encourage
America her most useful technical
skills
came
foreign countries
from
to this
country because of oppor¬
tunity and freedom. Any country
on earth could
restore this free¬
experiments witn cians.
"isms" have delayed recovery and
Relearning Economic Principles
no one can blame private capital
If we are
The struggle of each country to dom and opportunity.
for keeping out of France until
to export American capital which
the people of France make up protect its own trade and its own
results from technical skill and
their mind what kind of govern- existence is natural. But it is haro
ability and loan American money
'■ment they are going to have and to remember sometimes that these
to countries that restrict the free¬
whether or not private capital can efforts at self protection are far
dom of opportunity that makes
destructive
than
outside
remain private capital with fair more
France's
competitive
opportunities in
rich country
France is a
France.
and great
potentialities, but at the present
time, because of unfavorable P9-
with
great
resources
conditions in
and some
ordinary products which
should be well supplied
It
competition.
world
to
needs
to me the
learn again the
seems
elementary principles of
free trade, free markets, the costs
of protection, and the advantages
simple
litical and economic
of the division of labor and honest
France, capital is scarce
monies.
the
France
with
and
tried
and have
and
In
all of history
no
one
country could furnish any
of economic gains from
no
evidence
these
then
productive
standard
sugar.
living. Mercantilism
repudiated
in the Middle
of
of the dollar short¬
in other words, the Euro¬ Ages, but its restrictive policies
are
practised today to a degree
pean demand for American food
and productive equipment results and in a manner that would make
the people of the Middle Ages
from the delay in economic re¬
covery
and the restoration of look like wise traders. Whether
political conditions that would a lending or a borrowing country
encourage
people to risk their should advocate the return to
savings in those countries.
The sound principles that will increase
American investors are naturally production and raise the standard
going to avoid investments in of living for all the people in the
foreign countries where produc¬ world makes no difference. But
tion and trade regulations and surely some country and some
who
are ;
controls are such that private en¬ individuals
powerful
terprise is in danger. Loans to enough to be heard should restate
such
countries
will
probably these elementary principles in
never
be paid.% Capital invested words of one sylLablle that all the
in such countries may perish in. world can understand. It is very
this struggle for existence and the disturbing to find a country such
possibility of earning enough on as England which prospered and
such capital to repay the cost is built up the greatest commercial
limited until economic and po¬ empire the world has ever known
litical order are restored.
The on principles of free markets and
restoring of economic and political sound money now turning to re¬
was
A large part
age or,
•
The past ex¬
order is not enough.
perience
and the
In
American
of
investors
long delay since the war
restoring stable economic con¬
ditions together with
there
is
solution
no
to
business
the destruc¬
from
offices
experience with various con¬
trol "isms" naturally make Amer¬
ican investors afraid. People who
save and wish to invest in order
that they may keep their savings
and make
them productive are
to seek
.going
Francis I. duPont &
Co.
an
of
associate
New
ments iin
the best environ¬
which
to
invest
The
Bloc
coun¬
tries allied with the Sterling Bloc
represent from €0 to 80% of the
commercial
Dollar
the
Bloc
United
these time.
world
outside
the
of
that is important
States
at
to
the
present
The conflict between these
seeking to bor¬ two blocs should be ironed out
without delay. If the United States
row here or seeking to induce in¬
vestors to offer capital should set and England and the countries
money
convertible
into
forth ah economic policy that will using
Now With Merrill Lynch
A Plan Essential for
American Aid
liam A. Emerson has become
nected with Merrill
There
other
are
by
"
The
wise
suggestion of Secre¬
restoring
free
money
markets the trade of all countries
help
is
unbounded but
in
the
national
countries.
debts
of
both
But the delay in mak¬
in
the
to The Financial Chronicle
have
Keon
CONN.—Hervey
Frank
D.
Mc-
staff of
Chas.
W.
Scranton
&
Co., 209
Church Street, members of the
New York Stock Exchange.
"'V
joined
the
The Public National Bank
AND TRUST COMPANY
of NEW YORK
Main
Office,3
dStreet
aorB7
•*W.
"*V
'
CONDENSED
STATEMENT
restraining
with
accounts
OF
CONDITION
June 30,1947
particular
a
country.
With respect to
restrictions,
tariffs,
and
trade
regulations,
States
has
very
a
trade
other
United
the
great deal to
for the benefit both
overcome
dollar
shortage
result
of
is
regimented
apparently
restrictions
these
being
countries.
markets
lowed in many
American export
a
and
fol¬
trade at pres¬
ent is
facing the hazard of a dra¬
matic and painful collapse, be¬
cause of a shortage of dollar ex¬
change.
Exchange
transactions
throughout the world, the conver¬
sion of
one
paper money
RESOURCES
Cash and Due from Banks
other,
paper
with
monies
State and
Other Securities^
?
Loans and Discounts
>■
*
$115,460,404.59
„
?
y
>
>:
*
>:
y
?
*
>•
«
V.
Hi
7,
5!
XI
1.821.490.73
»•
>j
125,246,189.79
V
a
675,705.97
y
».
♦!
2,203,783.14
;•
m
a
1.225.900.74
>
a
,
Municipal Securities
X
?
*
.♦)
Customers' Liability for Acceptances
301,141,781.62
7,297,214.78
Stock of the Federal Reserve Bank
Banking Houses,
.
.
.
>
Other Assets
xj
ur
a
ar
&
;•
2
a
*
u
.
Accrued Interest Receivable
9.
660,000.00
♦
9
a
199,618.35
$555,932,089.71
\
into an¬
for
traders in
gold
and
in
un¬
currency
theorists yelling
outraged piety at the black
markets which
are
a
LIABILITIES
Capital
^ j j a s »
Surplus
a
strictions.
$ 9,625,000.00
« 2
3
2
2
12,375,000.00
'£
22,000,000.00
Undivided Profits
'
-.Tvr
1947
>-
$29,197,602.69
7,197,602.69
»
275,000.00
....
...
.
593,862.93
.
.
.
Reserved for Interest, Taxes, Contingencies
Acceptances
.
v
Other Liabilities
Deposits
*
.
a
.
t
*
5
778.862.81
2,119,554.24
»
t
4,817,934.17
$2,898,417.05
.
.
Less: Own in Portfolio £
5
>
221.988.82
*1*
*
M
520,046,838.29
t
natural con¬
own re¬
It is about time for us
done with
$555,932,089.71
these fallacious
being rationalized in the fielc
of international finance by high
Securities carried at $4,005,635.30 are pledged to secure
U. S. Government War Loan Deposits of
other
—•—.
$1,443,033.20 and
public and trust deposits, and for other purposes as
required or permitted by law.
are
induced
£
of their very
sequence
be
y
?
».
or
pegged, open public auction mar¬
kets.
It
is
getting continually
more tiresome to hear the man¬
aged
*
U. S. Government Securities
of
the people of this country and of
the rest of the world.
But the
Marshall
that
European would benefit. There are prob¬ sounding technical terms. It is
time for us to return to honest,
countries get together and set up lems growing out of the war such
the
large sterling debts of open market, free conversion for
a plan for their economic recov¬ as
paper money and gold.
ery indicating their needs of loans England and the great inflation
There is so little time.
A sud¬
and capital from the United States of the currencies and the increase
den drastic drop in our exports
should be enough to indicate to
to
con¬
Beane, 568 Central Ave¬
tary
countries that our willing¬
investors
balance with the world to balance
its
y
■
..."
*
•
t
/
•
FEDERAL DEPOSIT INSURANCE CORPORATION
/ 26 Offices Located Throughout Greater New
lack of dollar ex¬
change could seriously impair our
by
■
MEMBER: N. Y. CLEARING HOUSE ASSOCIATION
FEDERAL RESERVE SYSTEM
.
is
area.
NEW HAVEN,
L. Stockder and
Lynch, Pierce,
nue.
restraint'! thatTprfeVent
productive efforts.
practice
to
world
Special
PETERSBURG, FLA.—Wil¬
their most
rules, these OPA sophistries that
together and
example for the rest of the
to
loans and capital to countries that
sterling would get
confidence.
office
Two With Scranton
(Special to The Financial Chronicle)
the
set an
create
available
uptown textile
Fenner &
the
The com¬
Mackay & ment store securities.
City for fifty pany's "Daily News Letter" will
be
shortage and the
United States must continue to
hand out doles in the form of
lenge
Sterling Bloc and the
Danahy,
experience in textile and depart¬
of
York
Unearned Discount
v
S.
staffed by personnel with a wide
permanent dollar
It is about time
Sterling Bloc and the Dollar
Denis
years.
ST.
mem¬
ter of the New York garment dis¬
trict.
Under the management of
Gerardus L. Miller died at his
home at the age of 85.
He had
been
Co.,
change and other principal stock
and
commodity exchanges, an¬
nounce the opening of a new of¬
fice at 1359 Broadway, in the cen¬
Gerardus L. Miller Dead
their respective
govern¬
ments to
provide for the free
movement and free conversion of
very
./from
bers of the New York Stock Ex¬
Co.
Dividend Payable July
poli¬
her
Exchange,
securities busi¬
offices at 15 Broad
F. I. du Pont Opens
New Uptown Office
86-43
the international markets to chal¬
nationalistic
undermine
savings. Countries
ness'
at
The
and
which
Stock
a
his & Co.
Fifty-fifth Avenue. He was for¬
merly connected with Hunger &
economic existence.
striction
cies
Newsome, member of
York
Street, New York City.
He was
formerly a partner in Kalb, Voor-
always
the conversion of paper
money into gold are still governed
by pegged rates, embargoes, allo¬
cations, and other restrictions of
the managed -currency theorists.
They have done more damage to
the production and distribution of
goods than the war.
tive
'these
ness
of
ELMHURST, N. Y.—Thomas P.
Payne is engaging in a securities
thrive,
forces
D.
New
will engage in
else
theories
exporting are scarce. inflation and unstable monies, re¬ forces, such as bilateral trade re¬
These include such products as stricted production, self-contained strictions, that make it impossible
for a country with a favorable
wheat, wine, coal, iron ore, and economies, high costs, and a low
.
John
the
Thomas Payne Opens
To the extent that American
political and eco¬
in which reconstruct the ^reduction of for¬ supplies of goods and productive
have confidence. eign countries1 is abundant, but equipment result from skills and
in
France
now the thing that seems to be scarce
hoard their products because of is the economic environment and
integrity in foreign governments
the uncertain value of the franc.
The delay in restoring produc¬ and foreign economies to impart
of
J.D. Newsome Opening
Own Office in New York
get the rest of
order and increase
of
somebody
with
39
failed.
regimented control, to adopt poli¬
that
create
and trade that have been
money
policies for
going to be
the world, including small coun¬
tries that have a bias in favor of
cies
while
experiments
trade restrictions and set
remove
and
economy
environments
nomic
The
(39)
a
I
York
You
Whyte
As this
is being written, Bethlehem is
at 85 and Big Steel at 67V2.
83; the latter at 66.
at
question of what to do
The
==By WALTER
WHYTE =
Uncertainty of reaction to re¬
legislation points to mar¬
peak
holiday week¬
over
66. The
available Monday
former was
Says—
ket
and U. S.
Steel between 64 and
these stocks from here
with
That
in
deter¬
must be
turn
by the action of the en¬
mined
We
tire market.
end.
paramount.
becomes
now
are now
fac¬
ing a two-day market holiday
milling around con¬ —Friday and Saturday. Fre¬
tinues.
One day it is one
quently in the past a two-day
group of stocks that assumes shutdown is preceded by an
the leadership, the next it's
upsurge in prices with many
another.
In points advanced stocks
closing the week at the
The
there
few stocks
are
one
can
point in the cycle.
turn brings about an
highest
and stocks within end sufficient to cause a
groups give^ theN market an higher opening when trading
appearance of strength that resumes. The answers for this
is attracting some attention. are not too hard to
figure out.
It is possible that some of this
Yet this very action often
translated
is
attention
into
leads to the
having
men
under
among the nation's dealers,
the direction of E. Warren Wilson.
These
will
men,
change Act of 1934 exempt the
Bank's securities from three pro¬
and of all agencies of the Govern¬
wide acquaintance
a
emption is from Section 15(a), the
ques¬
answer
in
dealers concerning the
method of distribution, and will
tions
by
strongest. The public does
buying when the tape is
news
behind the news it is
strong
and active.
Unless
logical to assume that the re¬ there is something there to
cent legislation is making po¬ fan the
speculative blaze the
tential buyers a little nervous. chances are that such a holi¬
It is a fact that practically all
day is the,, beginning of an¬
recent laws, or lifting of old other decline.
restrictions, is bound to have
Feeling that way I now ad¬
a favorable effect on capital.
vise that both Bethlehem and
The financial world, however, Steel
(and Chrysler—if you
casual
a
glance of the
is
or
to know either.
seem
defined
over¬
Regardless
showed
which
advancing tendencies
were
rant
case
you
sugges¬
my
of the poten¬ tion is that you raise your
week's
market stops.
New stops should be
last
tials,
In
profit.
to hold on,
want
sufficient to
buying
war¬
least two
stocks.
If you recall,.the ad¬
vice to buy was at a price; a
price which was a few points
under
the
figures
quoted
Bethlehem 81 and Steel 64.
More next
:
./
Exchange
at
[The
article
time
views
not
do
in
expressed
necessarily at
coincide
with
those
in passing, that it
seldom pays to chase them.
If you can't get them at
your
figure, or close to it,, it is us¬
ually best to leave them alone.
might
say
There is seldom any percent¬
to buying them when
everybody else is bidding
age
xZ
.77
:
:7777
Pacific Coast
request to ex¬
a
Bank's securities from
provisions of the 1934 Act,
it agreed to do so regarding three
provisions. Over-the-counter bro¬
the
empt
all the
kers
need
dealers
and
not
Bank
issues
these
in
register with the Com¬
mission.
A
spokesman for the
the "Chronicle"
told
has
it is the institution's under¬
that
that
standing
after the in¬
securities
also
itial distribution of the
thereafter, dealers
market without regis¬
and at all times
make
can
a
tering.
Again, the
mits brokers
deal
wise
regulation per¬
dealers who other¬
new
or
exclusively
Government
securities
or
in United
municipal
in
participate
to
the
bank's securities without register¬
joining the
NASD.
the
only.]
The
the
third
trading
or
exemption
prohibition
sued
removes
against when-is¬
on a
national Securi¬
ties
Exchange which would or¬
dinarily be applicable to these
Of Oppenheim
bonds.
The full text of the SEC's cov¬
Collins
ering statement follows:
The
Philip N. Cohan has been elected
President
& Co.*
of
Oppenheim,
Collins
and Lester Hano and Jack
A. Segel
have been elected Vice-
promulgation of
under
of
Philadelphia
and
Buffalo
of
respectively,
according to
of
the
the
and
the
Securities
and
Exchange
Commission announced today
Presidents and General Managers
a
the
number of rules
Securities
Securities
Act
1933
of
Exchange Act
as well as the rendering
interpretation under the
Trust Indenture Act of 1939, with
Greenfield,
reference to the securities of the
by
Alb e r t M.
C ha i r m a n of the
boards of the corporation and its
parent company, City Stores Com¬
Mr.*
Securities
Orders Executed
Hano, • a partner in the in¬
banking firm of Newburger & Hano, entered upon his
new duties on July 1st.
vestment
on
i
Pacifio Coast Exchanges
Cullen Hoffman Forms Co.
COLUMBUS, GA.
Schwabacher & Co*
Members
New
York Stock Exchange
York Curb Exchange
San
(Associate)
Francisco Stock Exchange
Chicago Board of Trade
14 Wall Street
.
New York 5, N. Y.
COrtlandt 7-4150
Teletype NY 1-928
Private Wires to
Francisco
Monterey
—
Principal Offices
—
Santa
Oakland
—
Fresno
Barbara
Sacramento
1934,
an
International
Hoffman
has
Hoffman
—
formed
offices
with
Co.
Cullen J.
Cullen
J.
on
Broad Street to engage in the se¬
curities business.
He was former¬
ly with Clement A. Evans & Co.
With W. J Kelsey & Co.
Special
SAN
Samuel
J.
Street.
for
Recon¬
The
retary
of
to
The
Financial
FRANCISCO,
H.
Garner
Kelsey
'
&
'
is
Co.,
Chronicle
CALIF.—
now
25
with
Taylor
It consists of the Sec¬
the
Treasury
(who
Secretary
ernors
of
of
the
Commerce,
Board
of
the
Gov¬
of the Federal Reserve Sys¬
and
the
Chairman
of
Import Bank of Washington.
statutory
purpose
the
Bank
is
Securities
of
registered
as
with v
"national
a
se¬
Its
is "to coordinate
deal
but merely to allow
the customary commission or con¬
cession to
large number of bro¬
a
the
direct
privity of contract with the Bank.
Although the absence of an inter¬
kers
dealers
or
throughout
will
in
be
country
who
mediate
the
and
would
brokers or dealers
ordinarily
the
bring
bro¬
kers
or
dealers within the defini¬
tion
of
"underwriter"
2(11)
for
reason
Section
in
impelling
an
rule excluding them
a
definition
that
from
Act,
the
of
is
to
permit
exclusively in United States;
or municipal securi¬
Government
registering with the Commis¬
out
sion
to
joining the NASD.
or
these exemptions
ever,
the
that
the
Act in
effect immunizes the officers and
directors of the Bank from legal
Bretton Woods Agreements
are
condition
same
bona
a
How¬
subject,
concerning
fide offer of the entire al¬
or subscription as the Se¬
lotment
curities Act rule.
The Commission
with the National Advisorythat
Council
the
of
interest
the.
States Government in the7
Bank
justifies treating the Bank's
as
"exempted securi¬
ties" so far as Sections 15(a) and
securities
15A
underwriter between the
Bank
is
dealers who otherwise
or
United
sense,
The effect of
Sections
two
through underwriters in the
are
Securities
the
of
Act
Exchange.
concerned.
Exemption from When Issued
7,'
77777^7 Trading
;1
exemption under the.
Securities Exchange Act of 1934 ;
is from that portion of Section. '
The third
of the Act which prohibitsnational
12(d)
when-issued trading on a
Securities Exchange unless its pri¬
is to distribute thesecurity to holders of a
purpose
mary
unissued
security previously registered un¬
the
der
Securities
Exchange Act..
with respect to acts per¬
formed by them in their official
The Commission is informed that,
capacities, except when the Bank
waives this immunity.
Since this
to
process
provision relieves the Bank's of¬
(although not
ficers and directors
E^ank itself) from civil liabil¬
ity actions under Section 11 of the
Securities Act of 1933, the Com¬
mission believes it is appropriate
the
interest to extend
similar relief to the brokers or
dealers described in the Commis¬
in
the
public
sion's rule.
that
distributing
a
Bank will file
the
dealer, in order to obtain the ben¬
efit of the rule and be relieved
from underwriters' liabilities un¬
an
application,
register its debentures on theNew York Stock Exchange and
that the Exchange intends to ad¬
the
sued
trading upon the effective¬
of the registration statement,
ness
debentures
when-is¬
mit
to
Securities Act of
under the
1933.
The
exemption from the whenissued trading provisions of Sec¬
tion 12(d) was. requested and is
granted in order that the admis¬
sion
emphasizes
broker
or
Commission
The
of
Bank's debentures to-
the
trading on the New York Stock
Exchange will automatically ex¬
empt them from qualification un¬
der the "blue
ber
of
sky laws" of
States.
This
a num¬
action
was
11, must make a bona
taken after consultation with Mr..
fide offer of his entire allotment
or subscription, at not more than
the offering price specified in the
President of the National Associa¬
der Section
prospectus, to persons
partners, officers,
other than
directors or em¬
ployees of the broker or dealer, or
persons in a control relationship
D.
D.
tion
as
Murphy of South Carolina,,
of
well
Securities
trators of
Administrators^
the securities adminis¬
as
a
number of States, none
of whom had any objection.
The
three
exemptive
rules
yvith the broker or dealer, or ac¬
adopted by the Commission under
counts in which the broker orthe Securities Exchange Act of
dealer or any such person has a
1934 leave the Bank's securities
beneficial interest.
If the broker
subject to all the other provisions
cr
dealer
or
any
such person
of that Act, whether or not those
wishes to obtain any of the securi¬
provisions
apply
to
securities;
ties for his own account without
otherwise defined as "exempted
the making of such an offer and
securities" by Section 3(a)
(12)..
without losing the benefit of the
That Section authorizes the Com¬
rule, he will have to effect his
mission by rule to exempt any*
purchase on the open market on
security "from the operation of
the same basis as any member of
the
any
public.
Commission's
The
action
does
liability of the
the Bank's securi¬
affect the civil
ties
12(2)
of
in
any
prospectus
communication by means
which
or
of
securities are sold, as
the
well as the
17(a)
the
the event
material misstatements or
of any
oral
Section
under
liability under Section
of that Act for selling se¬
curities
by
practices
or
means
or
of fraudulent
material
misstate¬
omissions.
Exemption of Dealers
The rules adopted by
mission under
one
the Com¬
the Securities Ex-¬
or
more
provisions"
of:
that Act "which by
their,4terms dd>
'exempted secur¬
apply to an
ity,' " and the Commission hay
designated the Bank's securities
as "exempted securities" only for
the purpose of Section 15(a), Sec-;
tion
15A, and the when-issued
trading provisions of Section 12(dk
The Bank's request for a general
exemption from all the provision??
of the
Securities Exchange Act
was not supported
by the Council
and was rejected by the Commis¬
not
sion.
So
far
as
the
Trust
Indenture
Act of 1939 is concerned,
mission
the
Board of Trustees of the Export-
these
brokers
ties
ments
tem,
Inc.,
the Commission
iect
is
Chairman), the Secretary of State,
the
Dealers,
agrees
omissions
Bank and the International Mone¬
a
distributors'
States
the
of
excess
Securities Act of 1933 in
tary Fund.
Association
tional
presently propose to efthe distribution of its securi¬
distributors of
of
to
does not
visory
member
,
tion of the Bank's securities with¬
underwriter
an
Monetary and Financial Problems.
The Council was created by the
Bretton Woods Agreements Act,
pursuant
to which
the
United
a
and
non-ex¬
ties to participate in the distribu¬
person
mission is informed that the
not
by the National Ad¬
Council on International
became
in
the
of
"a
limited
is
in
supported
Chairman
W.
Bank
struction and Development..
Bank's request for this action was
pany.
San
mission refused
the
of
the Com¬
While
any
of
Lester Etano to Be V.-P.
stores,
'
New
11
Section
announcement
with you.
t
regarding the World
Bank's bonds.
Brokers and deal¬
ers
are relieved
of civil liability
ing with the SEC
when the column wa's written.
I
1934 Acts and the Trust Indenture
this
Chronicle.- They are presented as
those of the author
special
1933 and
Act of 1939,
Act.
brokers
trade
is
sellers' commission." The Com¬
usual
States
Thursday.
Whyte
—Walter
:
interest
not
conces¬
or
2(11)
usual and customary
carry
10-year issue.
"71777
*
under
distributors'
exclude
to
dealer
or
Securities
Section
in
itself
or
the
"underwriter"
term
commission from,
Commission today issued a
points
The
provisions for a sinking fund be¬
ginning in the 11th year and suf¬
ficient to pay off 50% of the prin¬
cipal by maturity.
There is no
sinking fund applicable to the
actions
dealer whose
or
sellers' commission
whose
under the
i93a
securit.es is limited to the
sion.
sue
of rules,
broker
any
Act
and
who
the Commission's exemptions from,
observation that "If the is¬
were
offered
today,
therg
Securities
of
interest in the distribution of
to the
;';. 7
adopted
Act
usual and customary
..-77 -:
dealers
Act
success of the offering,
Mr.- Dunstan confined
his reply
*
over-the-counter
empted securities. The second ex¬
emption is from Section 15A, the
underwriters'
from
exempt
Section which requires the regis¬
tration with the Commission of
Section pursuant to which the Na¬
rule
Securities
the
Bank's
the
*
the
ex-,
curities- association."
securities.
set
standing aside to see how bought it on my suggestion)
the class affected by this leg¬ be
disposed of somewhere
islation will react.
What the
during the first two hours in
upshot of this will be I don't next Monday's session.
pretend to know.
From the Chances are you will get any^
action of the market, it doesn't
where
from
three
to
five
to
of
The first
liabilities under Section 11 of tnat
prognosticate concern¬
Asked to
effect
under
contributing their
experience and services gratis in
the interest of facilitating the dis¬
its
is
foreign
monetary transactions."
or
The
houses, and are
ing
which
financial, ex¬
or
Liabilities
have been
recruited from syndicate depart¬
ments of New
York Securities
tribution of these
visions of that Act.
participate
or
Exemption from Underwriters'
These men
effective.
are
From
in
change
the orders
when the subscription books are
open for public offering after the
registration statement has become
make
majdng foreign loans
engage
assist in handling
also
—The
*
*
which
ment
opening after the
actual buying.
Yet it doesn't holiday as the last, or nearly SEC Rules Pertaining to
bring in buying, neither does the last opportunity, to get
World Bank Bonds
it bring in any aggressive out.
Potential sellers get rid
PHILADELPHIA, PA., June 25
selling.
of their stocks when the bids
*
-■
the policies and operations of the
representatives
of
the
United
States on the Fund and the Bank
(Continued from page 6)
point to as having made out¬ This in
would undoubtedly be an
standing progress in the past increase in the bullish senti¬ subscription."
few days.
But this shifting ment over the holiday week¬
The new 25-year bonds
of groups,
Thursday, July 3, 1947
World Bank Files SEC Registration Statement
Bethlehem
between 82 and 84
Markets
Walter
theoretically
now
are
long of two stocks,
Tomorrow's
cent
& FINANCIAL CHRONICLE
THE COMMERCIAL
(40)
40
concurs
in the
the Com¬
opinion of
counsel for the Bank that
emption
is
available
an
under
statute..
ex--
the
'*
}
Volume 166
THE COMMERCIAL' & FINANCIAL CHRONICLE
Nuipber 4608
Securities
•
I
Acme
June
26
Electric
Corp.,
Arden
also will receive proceeds from the sale of 20,000 war¬
rants for common stock to underwriters at an aggregate
price of $2,000. Net proceeds will be used to
working capital.
pay
June
of America,
Astoria,
June 27
(letter of notification) 54,000 shares of capital
stock (par $1).
Price—$1.50 per share. Underwriter—
Ackerman, Conte & Mattielli, New York. Purchase of
equipment, improvements, etc.
Aetna
June
20
Insurance
Co.,
Hartford,
Conn.
Co.,
Los Angeles,
Calif.
Brooklyn
(N.
Y.)
Union Gas
Co.
stockholders in the ratio of
ceivea tor the stock.
Blyth & Co., Inc., and F. S. Mossley & Co. and associates submitted a bid of 100.06 for %
4.30% dividend. Harriman Ripley & Co. and Mellob
held.
Price
one
shares
Unsubscribed
share for each 2Vz shares
be offered
publicly.
will
by amendment. Proceeds—To pay off bank loans
provide funds for construction.
and to
Arkansas
June
N. Y.
Farms
ISSUE
May 3, 1946 filed 70,000 shares of
Power
20. filed
1977.
Acryvin Corp.
Registration
filed 70,000
4
m.
shares (no par) preferred.
Under¬
writing—No underwriting.
Offering—The shares initi¬
ally will be offered for subscription to present preferred
current
bank loans and for
in
INDICATES ADDITIONS SINCE PREVIOUS
Cuba, N. Y.
filed
123,246 shares ($1 par) comftion stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
n share.
Proceeds—Company will receive proceeds from
the sale of 58,880 shares and four selling stockholders
the proceeds from the sale of 64,368 shares.
Company
•
Now
(41)
&
Light Co.,
($109 par).
Bids
Securities Corp. bid 100.779 for
be
4.40% dividend.
a
In¬
definitely postponed.
Pine Bluff,
Ark.
California
$11,000,000 of first mortgage bonds, due
Underwriters)—To
preferred stock
Underwriters—To be filed oy amendment.
Rejected—Company July 23 rejected two bids iscumu.
determined
by competitive
Stuart & Co. Inc.;
May
filed
5
Electric
Power
shares
80,000
Co.
(7/15)
par)
($50
preferred
Lehman Brothers and Stone & Webster Securities Corp.
stock.
postponed.
now has negotiated the sale of 60,000 shares
(dividend rate $2.50) with Shields & Co. and the First
Boston Corp. as underwriters.
Offering expected July 15.
(jointly); Central Republic Co. and Equitable Securities
Corp. (jointly).
Proceeds — To repay short-term bank
gram.
bidding. Probable bidders: Halsey,
Dillon, Read & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co. and Harriman Ripley & Co. (joint);
Company
Company
asked
for
bids
June
but
3
sale
Proceeds—To finance expansion and improvement
pro¬
loan and to finance construction program.
'
California
filed
250,000 shares ($10 par) capital stock.
Underwriters—Dillon, Read & Co. Inc. and W. C. Langley & Co., New York.
Offering — The shares initially
will be offered for subscription to stockholders on the
July 12, 1946, filed 350,000 shares (no par) cumul. first
preference stock, Series A; 300,000 shares of convertible
ferred.
basis of
second
and
Oregon Power Co.
share for each three shares
one
subscribed
shares
amendment.
•
be
Proceeds—To
Agricultural
Ithaca,
will
N.
now
held.
Un¬
sold
be
Advertising
Y.
publicly.
Price by
added to capital funds.
&
Research,
Inc.,
June 26 (letter of
notification) 900 shares ($100 par) 5%
non-cumulative preferred.
Price—$100 a share.
No
underwriting. For working capital.
Allied Finance Co.,
May
26
filed
25,000
convertible preferred.
Dallas, Texas
cumulative
Offering—
Offered to stockholders of record May 10 in the ratio of
one share for each two shares of common held.
Rights
expire July 15. Any shares not taken up to and including
18,750 shares will be purchased by Republic Insurance
Co.; balance will be sold to or through the Dallas Texas
Proceeds—0o retire
Price—$20
a
(par $5).
Co., New York.
Offering—The 350,000 shares of first
preference stock will be offered in exchange to holders
of its 532,996 shares of $6 cumulative convertible prior
preferred stock at the rate of 1.4 shares of first prefer¬
stock for each share of
ence
$6 prior preferred.
Shares
of first preference not issued in exchange will be sold
300,000 shares of second preference
stock will be offered publicly.
The 1,355,240 shares of
will
stockholders
of
a
shares
22
Inc.,
N. Y.
mon
"we
ratio of
affiliation agreements on March 31, 1946.
The remainder (3,333 shares) will be offered publicly.
Price by amendment.
as
Price—$3.50
Vending Machine Corp.,
($1 par)
writer—Reynolds & Co., New York.
New York
Under¬
common.
Price by amend¬
Proceeds—Of the total, 120,000 shares are being
by stockholders and the balance by the company.
The company will use proceeds for
organizational pur¬
poses, which includes the merger of Berlo Vending Co.,
Philadelphia, and Sanitary Automatic Candy Corp., New
.York. Business—Operation of coin machine business.
sold
American Water Works Co., Inc., N. Y.
1946 filed 2,343,105 shs. of
additional number
common
(par $5)
determinable only after the
results of competitive
bidding are known. Underwriters
•—To be filed by amendment. Probable bidders include
Dillon, Read & Co. Inc., White, Weld & Co., and Shields
& Co. (jointly) ^ and W. C.
Langley & Co. and The
First Boston Corp. (jointly).
Offering—Price to public
by amendment.
'
v/
Arcady Farms Milling Co., Chicago (7/8)
selling
30,000 shares while the remaining 66,000 shares are being
sold by stockholders.
Company will use its proceeds for
payment of its indebtedness of $400,000 to the First Na¬
Chicago.
Corporate and Public Financing
one
Arpen
by
new
to
come
the
conclusion
it
on
or
Corp.,
common
par)
are given
before July 15 in
No
un¬
Denver
(N. J.)
Electric Co.
522,416 shares
($10 par)
stock.
Atlas
27
common,
being
This dividend
15
and
policy
continue
to
was
the
end
to become ef¬
of
Electric
&
1948.
The
Cg.
until
Plywood Corp., Boston
filed
Business—Manufacture of plywood packing cases.
Barium
of
amounts
.
$1
share in Canadian funds.
a
Proceeds—For
variety
a
of purposes
in connection with exploration, sinking Of
shafts, diamond drilling and working capital.
•
Carter
June
Alfalfa
Corp.,
Reno,
Nev.
23
(letter of notification) 25,000 shares ($1 par)
common.
Price—$1 a share. Maurice R. Carter, Presi¬
dent, will direct the sale of the stock. For debt retire¬
ment and for
•
working capital.
Columbia
Pictures
Corp.,
New
York
The sharesr
being sold by stockholders and represent stock divi¬
on common stock held
by the sellers. The regis¬
dends
tration also covered
additional indeterminate number
an
of shares which may be issued to the
selling stockholders
through stock split-ups on commonPrice—$16 a share (estimated). Proceeds—Pro¬
ceeds go to the selling stockholders. Business—Motion
picture production.
*
as
stock dividends
or
Central Soya Co.,
Aug.
21,
1946,
Steel
shares will
ment of loans
stock.
Underwriter
Price by amendment.
and for other
—
Name
by
Proceeds—For pay¬
Mines,
Inc.,
San
Inc., Boston.
.
stockholders
common
underwriters.
to
(7/14-18)
$750,000 15-year 5% sinking fund deben¬
tures. Underwriter—Maxwell, Marshall & Co., Los An¬
geles. Proceeds—Estimated proceeds of $681,000 will be
used to retire $250,000 of bank loans. The balance will
be added to working capital.
Claude
Neon,
Inc., New York
March 28 filed 223,954 shares
($1 par) common. Undei>
will be offered for
Offering—Shares
writing—None.
basis of one
by amendment.
Proceeds—To finance airline operations and acquisition
and development of oil properties.
Company also plane
to advance funds to Summit Airways, Inc., of whose
subscription to
for
stock it
each
owns
stockholders
common
shares
10
held.
on
Price
61%.
Cleveland
(Ohio)
Electric
Illuminating
Co.
filed 1,847,908 shares (no par) common.
1,714,524
shares
to
common
stockholders of
share to
North American of record March 19 at $15 per
(Continued
on page
42)
Underwriters and "Distributors
of
Corporate and Municipal
Francisco
For exploration
Offer¬
ing—The North American Co. owned all the shares and
•
Securities
of mining
-
Flying
Service,
Inc.,
at
Unsuoscribed
Price by
16 filed
(leter of notification) 65,000 shares^ (100 par)
Price—$1.25 a share.
Underwriting—A. L.
Co.,
sold
Clary Multiplier Corp., Los Angeles
June
corporate purposes.
Berg Plastics & Die Casting Co., Inc., N. Y.
June 18 (letter of notification) 56,044 shares (100 par)
common.
Price—$4 a share.
Underwriter — Gordon
Meeks & Co., Memphis, Tenn.
For acquisition of ma¬
chinery and for working capital.
Bonanza
subscription to
be
(7/8)
Corp., New York
common
90,000 shares (no par) common.
Offering—Shares initially will be
amend¬
Proceeds—Working capital, etc. Offering indefin¬
itely postponed.
offered
Brayton
filed
ment.
purchase of
amendment.
for
Inc., Fort Wayno, Ind.
rate of one share for each 7V3 shares held.
Feb. 21,
Robertson,
Mo.
March 24
21 Vz
loan
of
June 24, 1946, filed 400,000 shares of common. Under¬
writer—No underwriters.
Offering — To- the public
June 17 filed $3,000,000 15-year sinking fund debentures,
due 1962, with non-detachable subscription warrants for
&
term
and
Carscor Porcupine Gold Mines, Ltd., sf Toronto,
Ontario
'
share
72,882 shares ($1 par) common. Under¬
writing—Van Alstyne, Noel Corp., New York. Price—
By amendment. Proceeds—For additional working capi¬
17
credit
to $9,000,000.
up
offered
The First Boston
has
June
construction
a
stock.
granted American Gas
Aug. 5, 1947, to sell the shares.
•
Corp.
preferred
for
Underwriter—None.
City
fective June
SEC
Boston
(jointly); Merrill Lynch, Pierce,
arid Harriman, Ripley & Co.
(jointly).
Bids—Bids for the purchase of the securities scheduled
for May 20 and postponed to June 18 further
delayed.
It is reported
company has abandoned sale of
are
(no
Corp., and Drexel &
Co. (jointly); Shields & Co., and White, Weld & Co.
(jointly); Dillon, Read & Co., Inc., and Smith, Barney
& Co.
(jointly); Blyth & Co., Inc.; Union Securities
Corp. Price—To be determined by competitive bidding.
Proceeds—The offering is part of American's plan to
dispose of its holdings of 1,150,000 outstanding shares
of Atlantic City. The shares remaining after the public
offering will be distributed as dividends on American's
claims.
Pittsburgh
Fenner & Beane
First
Inc.
.
bidders include:
FIRST BOSTON
stock
Probable bidders include:
Blyth & Co.
June 26 filed 24,832 shares (no par) common.
offered by American Gas & Electric Co. Underwriters—
To
be determined
by competitive bidding. Probable
common.
New York
new
-rC';
Mt. Holly, N. J.
share for each 13 shares held.
Skiing
March 19 filed
Albee
Chicago and other cities
Device Co.,
will
23
June
CORPORATION
bidding.
com¬
For working capital.
Atlantic
•
The
the
(letter of notification) 100,000 shares ($1 par)
capital stock. Price—$1 a share. No underwriting. For
improvement of skiing facilities at Aspen, Colo.
tal.
June 17 filed 96,000 shares ($5
par) common. Under¬
writer—Central Republic Co. (Inc.), Chicago.
Price by
amendment.
Proceeds—Of the total, company is
Boston
Unsub¬
per
ment.
tional Bank of
held.
purchased
(letter of notification) 8,000 shares
Price—$12 a share. *' Stockholders
derwriting.
Proceeds—For general corporate purposes includ¬
ing reduction of bank loans and outstanding notes.
an
have
right to subscribe to
June
Underwriter—Townsend, Graff & Co.
June 30 filed 145,000 shares
19
common.
•
Machinery Corp.
Mar. 31 filed 133,000 shares (50c par)
common, of which
10,000 will be offered to officers and key employees.
plus
be
to issue any additional shares of
part of company's refinancing plan.
Arrow Safety
had network
March 30,
will
Price—Public offering prices by amend¬
said
stock"
June
American
share
common
common
Proceeds—Net proceeds will be used to retire all
Dillon, Read & Co. Inc., New York.
Offering—A maxi¬
mum of 30,000 shares
may be sold by company to per¬
sons, firms, or corporations with whom the corporation
•
each
subscription to common
in the ratio of one-third
unexchanged shares of $6 prior stock and to redeem its
outstanding 7% preferred stock.
George Eastwood, President, in letter to stockholders,
27, 1946, filed (by amendment June 23, 1947)
33,333: shares ($1 par) common stock.
Underwriter-
share.
for
company
for
of
underwriters.
ment.
offered
the
share
new
scribed
be
of
not be necessary
Broadcasting Co.,
March 26 filed 60,000 shares($100 par) cumulative pre¬
Underwriters—To be determined by competitive
to underwriters. The
June
American
Series A, and 1,355,240 shares
Underwriting—Kuhn, Loeb &
stock
common
Dec.
present indebtedness.
"
American
preference stock,
common
shares ($20 par) 5%
Underwriting—None.
National Association/ of Security Dealers.
share.
Armour and Co., Chicago
(letter of notification) 50,000 shares ($1 par)
cent cumulative, convertible preferred and 50,006
shares (10c par) common.
Price—$5 per unit, consisting
one share of each.
Underwriter—White and Co., St
of
Louis, Mo. For expansion of operating facilities and for
working capital."
'
Kidder, Peabody & Co.
Founded 1865
Members
New York
of the New York and Boston Stock Exchanges
Boston
Philadelphia
Chicago
42
by competitive
mined
NEW ISSUE CALENDAR
Corp
Pfd. & CI. A Shares
Sylvan Seal Milk Inc
Shares
Common
are
(EST)
Detroit///v;/
films.
11
(EDT).
a.m.
Warren Petroleum Corp
Preferred
July 14,
Debenture Note
July 15,
•
Debentures
Kentucky Utilities Co
eral
Preferred
Hooker Electrochemical Co
Agreement
Preferred
Van Norman Co
Common
Cleveland for every five North Ameri¬
shares held.
can
Rights expired May 27 and 1,648,275
subscribed for. The remaining
133,383 shares
through competitive sale.
Probable bid¬
were
to be sold
ders include
Dillon, Read & Co. Inc.; The First Boston
Corp.; White, Weld & Co. and Shields & Co.
(jointly);
Kuhn, Loeb & Co. and W. C. Langley & Co.
(jointly);
Otis & Co.; Blyth &
Co., Inc.; Smith, Barney & Co.«
~
Proceeds—For prepayment of bank loan notes of
North
American. Bids Invited—Bids for the
purchase of 133,383
shares will be received at the
office of North American
Co., room 1901, 60 Broadway, New
York, up to 11 a.m.
(EDT)
on
July 8.
will
be oftered
—To retire all
publicly, Price—$26 a share.
Proceeds
unexchanged shares of 5% preferred.
Cohart Refractories Co.,
Louisville, Ky.
Mar. 28 filed 182,520 shares
($5 par) common.
Under¬
writers—Harriman Ripley & Co., and Lazard
Freres &
Co., both of New York. Price by amendment.
Proceeds
—The shares are
being sold by Corning Glass Works,
New York, and
represent 88.8% of the total
outstanding
common of the
company.
Offering indefinitely post¬
I'
poned.
Consolidated Natural Gas
Co., New York
May 15 filed 545,672 shares ($15
par) capital stock.
Underwriting—None.
Offering—The
shares
are
of¬
fered to the common
stockholders of record June 20 on
the basis of
one
share for each
five shares
presently held.
Rights will expire July 11.
Price—$37.50 per share. Pro¬
ceeds—Proceeds, together with other funds, will be used
to purchase
additional shares of four
operating com¬
panies, Peoples Natural Gas Co.
(Penna.), Hope Natural
a0/ *(W\ YN' East 0hio Gas Co-» and New
cw
State Natural Gas
Corp.
York
Crawford Clothes. Inc., L. I.
City, N. Y.
1946, filed 300,000 shares ($5 par) common.
9 filed 300,000 shares
($5 par) common stock.
Underwriters—First Boston Corp., New York.
Price by
amendment.
Proceeds—Go to Joseph Levy, President
•elling stockholders. Offering date indefinite.
^
Aug. 9,
Aug.
Mines, Ltd.. Montreal.
'■%»
May 31, 1946, filed 500,000 shares of
'•*
Canada
common
(par $1).
Underwriters—-Sabiston-Hughes, Ltd., Toronto. Offer¬
ing—Shares will be offered to the
public at 75 cents a
Mare.
Proceeds—Net proceeds, estimated at
$300000.
will be used for
mining operations.
•
Denton
(Tex.) Industries Inc.
June 26 (letter of
notification) 1,200 shares ($25 par)
common, to be issued in exchange for
preorganization
subscriptions heretofore sold.
Price—$25 per unit.
No
underwriting. To purchase industrial sites and to build
buildings.
•
Detroit Edison
Co., Detroit
June 27 filed
$60,000,000 of general refunding mortgage
bonds, series "I," due 1982. Underwriting—To be deter¬
Co.
Grolier
common
•
Society,
Inc.,
New York
(by amendment)
170,000 shares of $1
Proceeds—For
common.
loans.
Prices—At
par.
No underwriting.
•
To purchase
par
Hemphill,
*
.,
reduction
of
bank
1
Empire
Record
Corp.,
New
York
Materials
Corp.,
New
June
York
March
Co., Newark, N. J.
14
filed
270,000 shares of capital stock./Under¬
proceeds will be used to pay obligations, purchase helir
copters and equipment and for working capitaL
;
•
.
/'J Holt (Henry) & Co., Inc.,-
N. Y.
June
5,000
20
common
(letter
on
of notification)
loans in the amount of $1,295,000 to Bankers Commer¬
ly $10
5,000 shares common
Life Insurance Co.-
•
a
share.
Hooker
June
y '•: *%*'!;
shares ($1 par).
behalf of Reserve Loan Life
of Texas and
Fidelity Electric Co., Lancaster, Pa.
*
writer—Strauss Bros., Inc., New York. Underwriters may
withdraw as such. Price—$3.50 a share. Proceeds—Net
with $755,000 of other bonds, will be used to repay the <
balance of $34,000 of a property mortgage, to pay off
cial Corp., New York, and for additional working
capital, i
Inc., Los Angolos
1946
27,
}|
Feb.
Proceeds—Proceeds of approximately $870,000r together
Ariz.
Helicopter Air Transport, Inc., Camden, N. JU1
.
Electric Products
Phoenix,
filed 120,000 shares.($1 par) common.
Underwriters—Van Alstyne, Noel & Co., New York, and
Johnston. Lemon & Co., Washington, D. C.
Offering—
To be offered to the public at $5 a share. Proceeds—
Company is selling 50,000 shares and stockholders are
selling 75,000 shares. The company will use its proceeds
to pay the costs of opening additional stores and to ex¬
pand merchandise in its existing stores.
Offering tem¬
porarily postponed.
5 -V
:
(letter of notification) 2,250 shares (no par)
$5 cumulative preferred and 22,500 shares (lc par) com¬
mon.
Price—$100.50 per unit, consisting of one share of
preferred and 10 shares of common.
Underwriter—
Eastman, Dillon & Co., New York.
To purchase ma¬
chinery and equipment and for other working capital,
requirements.
/'/ '.■
26, filed 150,000 shares ($1 par) common class A.r
Underwriter—E. F. Gillespie & Co., Inc., New York.} ;
Price—$7.25 a share.
The registration gtates princi-<«
pal stockholder has granted the underwriters an option;?
to purchase 45,000 shares of class B ($1 par) common
at $7.25 ,a share, exercisable for a period of three years.
Co.,
Hartfleld Stores,
April 29
Federal
Clothing
For expansion program of the company.
writing.
(7/10)
30
Fairport
Hanny
June 25 (letter of notification) 2,500 shares ($100 par) $5
cumulative preferred.
Price—$100 a share. No under¬
(letter of notification) $50,000 7% debenture
note, due June 30, 1954.
Price—$100.
Underwriters—
None.
Working capital.
•
Pittsburgh
stock. Underwriters—Riter & Co. and
standing
Nev.
land, buildings and equipment.
June
Co.,
23
(letter of notification) 1,250 shares ($100 par)
7% cumulative preferred and 1,250 shares ($10 par) com¬
mon.
& Chemical
Noyes & Co. Offering—Underwriters will purchase from
the company 70,000 shares and from Fred P. Murphy
and J. C. Graham, Jr., 100,000 shares of issued and out^-
plant and machinery and eauinment
Las Vegas,
Drug
April 2, 1947
For corporated purposes including
improvement of the manufacturing
Inc.,
if*]
■>
^
31, 1946, filed 5,000 shares ($100 par) 5% non-cumul.
Empire Motors,
Vi
'•*
May 5 (letter of notification) 150,000 shares of common
stock. Price—$1. Underwriter—Willis E. Burnside & Co.,
Inc., New York. Proceeds to buy all assets of Mid-State
Pharmacal Co., Inc. of Bedford, Ind., which makes a
complete line of over 150 drug items, and for additional
working capital.
In no event will any offering be made
until approval for sale has been secured from several
bltie-sky States.
preferred. Underwriters—None. Offering—To be offered
at par to customers, officers and employees of the com¬
•
1947.
:■
Greil
May 19 has been post¬
Edelbrew Brewery, Inc., Brooklyn, N. Y.
June
V-'-
1949, common stock of the company at $11 a share. Price
by amendment. Offering temporarily postponed, i
t K
-
(letter of notification) 36,500 shares ($1 par)
behalf of C. Alan Brantingham of Rockford.
Underwriting—Paul H. Davis & Co.,
and Webber, Simpson & Co., both of Chicago.
—
shar^,
stock purchase warrants to the selling stockholders at
10 cents a share entitling them to purchase up to Aug. 1,
on
and
a
issued to stockholders of Florida Portland Cement
Alstyne, Noel & Co. Offering—The 300,000 shares are
issued and outstanding and being sold for the account
of certain stockholders.
Company has also issued 55,000
25
Proceeds
Chicago
42,480 shares
Aug. 28, 1946, filed 355,000 shs. ($1 par) common, of
whMf 55,000 shs. are reserved for issuance upon .the
exC^cise of stock purchase warrants. Underwriter—Van
Ebaloy, Inc., Rockford, III.
pany.
Retire indebtedness and gen¬
Glensder Textile Corp., Now York
indefinitely.
modernization
ex-
N. Y.
and
■■■'
bidders include
Dec.
Buffalo,
Signal Mountain Cement Co., January,
Proceeds—For general corporate purposes. *
Price—At market.
Exchange privilege expires July 16. Unexchanged shares
y
-
rants,.entitling holdings to purchase stock at $12
Mar. 28 filed 60,000 shares of $10 par common. Under¬
writers—To be determined by competitive biding. Prob-.
common
20 filed
were
f
June
Pro-|
($1 par) common.
Under¬
writing — No underwriting.
Offering — To be'sold to,
holders of Portland's consolidation warrants.
The war-'"
■
•
*
Light Co., Miami, Fla.
General Portland Cement Co.,
June
East Coast Electric Co.
chase of the stock scheduled for
Coast Counties Gas
& Electric Co.
(7/17)
May 22 filed 75,000 shares series A 4% preferred
(par
$25).
Underwriter—Dean Witter & Co., San Francisco.
Offering—Shares are being offered in
exchange for com¬
pany's ($25 par) 5% first preferred stock on a share for
share basis, plus accrued
dividends on the old stock.
Power &
Hamlin & Lunt, Buffalo.
eral Corporate purposes.
(letter of notification) 25,000 shares ($1 par)
common on behalf of the issuer, 12,500 shares
($1 par)
common for the account
of Thomas R. Heyward, Jr.,
and 12,500 shares ($1 par) common for the account of
Mrs. Thomas R. Hayward, Jr.
Price—At market (ap¬
proximately $3.25 per share).
Underwriter—Johnson
& Johson, Pittsburgh, Pa., and The First Cleveland
Corp., Cleveland.
The company will use its proceeds
for working capital.
poned
July 9
shares being held.l
June 23 (letter of notification) 10,000 shares of
common]
stock (par $1).
Price—$11.25 per share.
Underwriter—
Harris, Hall & Co. (Inc.); Otis &
Co.; Kidder, Peabody & Co. The stock is being offered
by East Coast Public Service Co., parent. Bids for pur¬
"
record
Price—By amendment.
.Frontier Industries Inc.,
share. Proceedsr—For gen¬
expansion.
able
10
of
bentures, serial notes, and promissory notes, and for
pansion of facilities.
March 12
(Continued from page 41)
are
Midland, Mich.
Duraloy Co., Scottdale, Pa.
July 24, 1947
stockholders
$10,000,000 of first mortgage bonds, duel
1977f $10,000,000 of sinking fund debentures, due 1972,1
and/150,000 shares of $100 par cumulative preferred.]
Underwriters—Names to be filed by amendment. Price
by amendment.
Proceeds—To redeem outstanding de¬
amendment.
Debentures
Florida Power Corp
shares
Florida
April 28 filed 14,300 ($1 par) common shares. Under¬
writer—Van Alstyne, Noel & Co. Proceeds—Stock is
being sold by Harry R. Drackett, President (6,929 shares)
and Charles M. Drackett, 7,371 shares). Price — By
July 17, 1947
Coast Counties Gas & Electric Co
common
June'24 filed
Drackett Co., Cincinnati
Preferred
Erie RR. Conditional Sales
one
Co.,
Price—Estimated to be $110 a
1947
California Electric Power Co..,
the extent of
Chemical
Dow
Fen-j
for]
Offering—The shares will be offered
Rights will expire July 23.
July 2 filed 400,000 shares (no par) second preferred
stock.
Underwriter—Smith, Barney & Co., New York.
Preferred
-
,
ceeds—To be used in $9,450,000 construction
program.
ing.
Clary Multiplier Corp
;
(7/24)
in the ratio of one share for each
(letter of notification) 11,500 shares ($25 par)
Francisco; and Adele W. Parker, Clearwater. To
purchase 493 shares of capital! stock of G. H. Cherry,
Inc. out of a total of 625 such shares presently outstand¬
1947
& Beane.
subscription to
Capital Corp., all of Los Angeles; Brush Slocumb & Co.,
July 10, 1947
Corp.
Unders]
San
Empire Record Corp
Power
Juno"4 filed 100,000 shares
($7.50 par) common.
writers—Adler, Peabody & Co. and Merrill Lynch,
being sold by a stockholder. Twin Coach Co.,
cumulative convertible first preferred. To be of¬
fered at a maximum of $26 a share. Underwriters —
Pacific Co. of California, Cruttenden & Co., Pacific
Bond and Preferred
v!.
Florida
5*4%
Public Service Co. of New Mexico
Eacl
initially convertible into 1
Underwriter—Herrick, Wad-
stock.
common
share; remaining proceeds, together wit
funds, will be used for production of educatioi
other
Douglas Oil Co. of California, Clearwater, Calif.
March 13
of
an<
stock and one share of common
stock.
Proceeds—$201,000 for retirement of
2,010 shares ($100 par) preferre
stock at $100 a
/M.:
ner
Equip. Trust Ctfs.
CI. A stock
stock, of whicl
Co., Inc., New York.
Offering — To be offeret
publicly at $8.10 a unit consisting of one share of class
July 9, 1947
Noon
New York
dell 18c
Kent, O., which will receive all proceeds.
New York Chicago & St. Louis RR.
corporat]
general
reserved for conversion 6f class A.
class A stock is
shares of
April 30 filed 34,963 shares ($1 par) common. Under¬
writers—Reynolds & Co. and Laurence M. Marks & Co.,
both of New York. Price—By amendment. Proceeds-
(EDT).—Bonds
a.m.
Divco Corp.,
.
Common
(EDT)
Seaboard Container
shares
officers of the company.
Cleveland Electric Illuminating Co.
and
200,000 shares
be sold through Bennett, Spanier & Co., Chicago,
agent.
The shares are being sold on behalf of three
as
capital
,
Films Inc.,
may
Equip. Trust Ctfs.
Working
June 25, 1946 filed
100,000 shs. ($5 par)
800,000 shares (10 cent phr) common
mon.
..Common
11
Trask &
Spencer
May 8 (letter of notification) 15,000 shares Class B com¬
Price—At market.
All or part of the securities
July 8, 1947
Arcady Farms Milling Co
New York Telephone Co.,
amendment.
Disticraft, Inc., Chicago
...Debentures
Equitable Office Bldg. Corp..
Thursday, July 3, 194'
purposes.
additions. Business—Public utility.
July 7, 1947
a.m.
Probable bidders: The
Co.; Dillon, Read & Co. Inc.
Proceeds—To redeem outstanding mortgage bonds, series
"F," due 1965, to repay bank loans, and for property
Burr;
(Showing probable date of offering)
Chesapeake & Ohio Ry.
Noon (EST)
bidding.
Halsey, Stuart & Co. Inc.; Coffin &
First Boston Corp.;
11
FINANCIAL CHRONICLE
THE COMMERCIAL &
(42)
on
-
Insurance
Co.
behalf of Atlantic
To be sold at
market, approximate¬
Underwriter—Kneeland & Co., Chicago.
Electrochemical
Co.
(7/15)
j
■
r
26 filed
enable holders of 30,000 warrants to subscribe to 30,000
shares class A stock as provided in the warrants. Un¬
110,000 shares (no'par) cumulative pre¬
ferred, series A. Underwriting—Smith, Barney & Co.,
New York.
Price—By amendment.
Proceeds^—To re¬
deem outstanding shares of $4.25 cumulative no par pre¬
ferred at $104 a share and for construction expenditures^
derwriters—Any
Business—Manufacture of chemical
June 25
common
(letter of notification) 30,000 shares of class A
(par $1). Price—$4 per share. Offering is to
underwriters
will
be
supplied
by
products.
-
•
Ji
rolume
t
•
166
Number
4608
THE COMMERCIAL &
FINANCIAL CHRONICLE
(43)
Illinois Power Co.,
Decatur, III.
:
ferred.
June 17, 1946 filed
200,000 shares
ferred stock and
($50 par) cumu. pre¬
966,870 shares (no par) common stock.
competitive bidding.
Probable bid¬
ders include
Blyth & Co., Inc.; The First Boston
Corp.;
W. E. Hutton & Co.
Proceeds—Net proceeds from the
of
Proceeds—To retire
$105 a share and to
Reported plan to offer pre¬
repay $4,500,000 bank loan.
ferred abandoned, with
possibility of
tures being offered.
preferred
will be used to
reimburse the com¬
pany's treasury for construction
expenditures. Net pro- *
ceeds from the sale of
common will be
applied for re¬
demption of 5% cumulative
convertible preferred stock
not- converted into
common prior
to the redemption
date.
The
balance
'Company has
will
be
asked the
nancing program because
•
International
Development 1
\ June 30 filed an aggregate
|2^4% bonds and 25-year 3%
and
Co.,
and
The
sisting of
one
Loew's Inc., New York
June 20 filed
59,676 shares (no par)
Goldman,
Boston
stockholders at $25 a share.
duction of indebtedness.
June
30
Price—$3
share.
a
No
of business.
50,000
underwriting.
shares of
•
Based
on
market
Syndicate
of
Business—Investment
Proceeds
business.
—
For
23
Proceeds—To
finance purchase
Manontqueb
claims.
by competitive
bidding.
Probable bidders include
Blyth & Co., Inc.;
The First Boston
Corp.; Union Securities Corp. and Mer¬
Beane
(jointly) and Leh¬
man Brothers
and Lazard
Freres & Co.
(jointly). Offer¬
ing—Preferred stock
initially will be offered in exchange
for
outstanding ($100 par) 6% preferred and
($50 par)
junior, preferred. The basis of
exchange will be one
share of
new preferred
for each share of
6% preferred
share of new
preferred for each two shares of
junior preferred.
Shares of new preferred not
issued in
exchange will be sold at
competitive bidding.
Price to
be determined
by competitive
bidding.
Proceeds—Pro¬
ceeds from the sale
of new preferred
will be used to
redeem
unexchanged shares of old preferred.
Bids—The
sale
tentatively set for July 14.
one
Kimberly-Clark Corp.,
Neenah, Wis.
June 27 filed
300,000 shares (no par) common.
Under¬
writing—Blyth & Co., New York. Price—To
be supplied
by amendment. Proceeds—For
construction of additional
plants and
facilities and for
improvement of facilities.
Business—Book paper
manufacturer.
loans.
Lay (H. W.) & Co., Inc.,
Atlanta
1
April 18 filed 16,000 shares
($50 par) 5% cumulative
convertible preferred and
15,000 shares ($1 par) com¬
mon. '
Underwriter—Clement A. Evans &
Co.,- Inc.,
Atlanta.
Offering—All but 3,000 shares of
the common
will be sold
publicly at $6.50
share. The preferred will
be offered to the
public at $50 a share.
The 3,000 shares
pf conjhion not sold
publicly will be offered to
company
ipfficers and employees at $5 each.
Proceeds—For con¬
struction of
new
a
plants at Atlanta and
Memphis, Tenn.
Offering indefinitely postponed.
v
©
Legend Gold Mines,
Ltd., Toronto, Canada
June 27
,
filed 300,000 shares
($1 par) common treasury
Underwriting — To be supplied by amendment.
Price—50 cents a share.
Proceeds—To develop
mining
properties.
stock.
Business—Mining.
Lerner
Stores
Corp., Baltimore, Md.
May 2 filed 100,000 shares
($100 par) cumulative
pre¬
retire
the
common
bank
shares
Ltd.,
•
North
June
on
No
Mays
(J. W.)
to
Old
Under¬
share.
Leeward
of the
Price—Per unit:
company.
debentures
issue
and
60
$6,000 B. W. I. ($5,100 U. S.)
capital shares.
The company will
additional 700 shares of
capital stock to Robert¬
an
Ward,
President,
as
compensation
for
Pacific
club.
Mission
Appliance Corp.,
Los
March 25 filed 58,000 shares
($5 par)
writer—Lester & Co., Los
Angeles.
share.
Proceeds—For construction
Angeles
common.
Under¬
Price—$11.50 a
of new plant build¬
ing and
an
ery and
equipment.
•
office building and for
purchase of machin¬
Mississippi
June 27 filed
and
Power
Co.,
Gulfport,
Miss.
$2,500,000 of first mortgage bonds, due 1977,
20,099 shares
(no
par)
preferred.
Underwriting—
bidding. Probable
Halsey, Stuart & Co. Inc. (bonds only); The
First Boston
Corp.; Blyth & Co.', Inc.; Kidder, Peabody
& Co., and
White, Weld & Co. (jointly); Glore, Forgan
& Co., and W. C.
Langley & Co. (jointly). Offering—
The bonds will be
offered publicly while the
preferred
Bonds
will
bidders:
be
sold
at
competitive
will be offered to the
company's $6 preferred stockhold¬
ers in
exchange for their
for share
issued
in
basis, plus cash.
exchange will
present holdings on a share
Shares of new preferred not
be offered publicly through
underwriters. Price—Price of bonds will be
determined
by competitive bidding. Price of
preferred will be sup¬
plied by amendment. Proceeds—To finance
new
con¬
struction.
Business—Public utility.
(no
par)
underwriting.
For
Distillery, Inc., Louisville, Ky.
Power & Light
Co.,
18 filed
Portland, Ore.
$29,000,000 30-year first mortgage bonds.
Underwriting—Of
the total,
$26,900,000 will be offered at
bidding.
Probable bidders include
Halsey,
Stuart & Co.
Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly), Blyth & Co., Inc.
Offering—
$2,100,000 of the bonds will be issued to Pacific's
parent,
American Power &
Light Co., ip exchange for the same
principal amount of 4^>% debentures due 1959.
competitive
Price—
To be determined
by competitive bidding.
Proceeds—
redemption of 5% first mortgage and prior lien
gold
bonds due 1955.
ment of
For construction
program and for pay¬
indebtedness.
Pennsylvania-Central Airlines Corp.
May 29 filed $9,850,000 15-year 3 Vz % convertible income
debentures, due 1960.
The registration was filed as a
step in obtaining consent of two-thirds of the holders
of the outstanding income
debentures to changes in the
indenture to permit extension of
a $4,000,000 bank loan.
White, Weld & Co. will act as
dealer-manager to engage
in proxy solicitation.
Holders of the
outstanding deben¬
tures will be asked to
approve changes in the indenture
to eliminate present restrictions
against creation of debt
and give relief from
any
until 1950.
services.
Proceeds—To acquire
property and construction of club
facilities. Business—Operation of
Cleveland
shares
underwriting. For additional working capital.
-For
June 26 filed
$780,000 (B. W. I.) of unsecured
debentures,
due 1977, 3% interest
after Jan. 1,
1950; and 8,500 shares
of $1
(B.W.I.) par capital stock. Underwriting—The
shares may be sold
through officers and directors
No
par to
stockholders of record June 13 at rate
of one
share for each 10 shares
held. Rights expire
June
corporate purposes.
Reef
Properties, Ltd., Antigua,
Islands, British West Indies
Poindexter
filed
Inc.,
1,500
share.
a
Aug. 13.
No
Midland Cooperative
Wholesale, Minneapolis
May 29 filed $1,000,000 4% non-cumulative
preferred
Stock "D."
Underwriting—None. Price—$103 a share.
Proceeds—For operating capital and other
corporate
purposes.
■/ VV\:
31
Price—$100
common
new
Inc., Brooklyn, N. Y.
Mill
Lines,
Oneida, Ltd., Oneida, N. Y.
May 27 (letter of notification) 20,500 shares
($12.50 par)
common.
Price—$12.50 a share.
Offered at
Mid-Continent Airlines,
Inc., Kansas City, Mo.
May 14 (letter of notification) 30,601.4 shares
of com¬
mon.
Price—$7.50 a share. No underwriting. To be added
•
Van
50,000 shares ($20 par) 5% convertible
cumulative preferred and an
unspecified number of ($1
par) common shares into which the
preferred is conver¬
tible.
Underwriters—F. S. Yantis &
Co., and H. M.
Byllesby & Co., both of Chicago. Price—At
par. Proceeds
—To be added to working
capital.
Can.
working capital.
Easthampton,
30,000 shares ($10 par)
preferred.
Price—$10 a
working capital.
($1 par) common. Under¬
writer—Burr & Co.,
Inc., New York. Price by amend¬
ment.
Proceeds—Of the total,
100,000 shares are being
sold by seven
stockholders. The remaining
50,000 shares
are
being sold by the company, which will use
its pro¬
to
convertible
American
common.
150,000 shares
ceeds for general
t
Corp.,
(letter of notification)
$4
$60,000 six months 4%
Harwell; FheSident; Price—
"
'••• \
r
underwriting.
23
at
Toronto,
a
Battery
York.
Proceeds—To be added to general funds for
general cor¬
porate purposes.
machinery and other plant equip¬
Explorations,
Street, New
(letter of notification)
and
indebtedness
West
Underwriter—Harrison White, Inc., New
(letter of notification)
behalf of Harold W.
Feb. 28 filed
son
Manufacturing Co., Inc.,
Rapids, Iowa
April 30 filed 60,000 shares
($25 par) 5% cumul. con¬
vertible preferred.
Underwriter—Paul H. Davis & Co.,
Chicago. Price—$25 per share.
Proceeds—To be added
to working capital
and will be used in
part to reduce
current
bank
and
2
cumulative
share.
Business—Mining.
June 30
•Kentucky Utilities Co.,
Lexington, Ky. (7/14)
May 9 filed 130,000 shares ($100
par) cumulative pre¬
ferred.
Underwriters—To be determined
Plant-Choate
June
Markfey Corp., Plainville, Conn.
loans
Cedar
re¬
140
(EDT), July 8.
Cadmium
Mass.
6%
cents
Par.
La
For
up to 11 a.m.
Nickel
•Proceeds—For exploration and
development of mining
writers-Sills, Minton
•
underwriting.
April 10 filed 300.000 shares
($1 par) common.
writer—F. H. Winter & Co.
Price—40
amendment.
and
No
1600,
York,
Mar.
Co.
102,000 shares ($1 par) common.
Under¬
&
Co., Inc., Chicago. Price—By
Proceeds—The shares, which constitute
ap¬
proximately 48.5% of company's
outstanding common
stock, are being sold to stockholders.
of
ment.
Feb. 26, filed
&
Seattle
& Arnold,
Inc., Raleigh, N. C. Price
102.507, while the preferred shares
par
•
Lynch, Pierce, Fenner
Inc.,
notification) 2,873 shares (no par)
Price—$25 a share.. To be offered to present
—The debentures at
will be offered at
the proceeds will be
used to pay mort¬
gage debt of
$10,578,000 and balance will be added to
general funds.
rill
Hotels,
of
derwriter—Kirchofer
Price—
investment.
Electric Co.
Engraving
The balance of pro¬
ceeds will be used to
meet further construction
require¬
Bids Invited—Bids for
the purchase of the bonds
will be received at
Room
May 20 filed $500,000 5% serial
debentures, due 19491957; 12,000 shares ($25 par) 5Y2% cumulative converti¬
ble preferred and
85,000 shares ($1 par) common. Un¬
$22,000,000 of first mortgage bonds due
1977.
Underwriter—To be determined
by competitive bidding.
Probable bidders include
Halsey, Stuart & Co. Inc.; The
First Boston
Corp.; Glore, Forgan & Co.;
Blyth & Co.,
Inc.; Harriman Ripley &
Co.; Harris, Hall & Co.
(Inc.).
Proceeds—Part of
Jahn & Oilier
$79,300,000 of demand
notes to its
parent,
American Telephone &
Telegraph Co., and a $3,000,000
owing the Chase National Bank, New
York, plus $25,000,000 it expects to borrow
from Chase
prior to the sale of the debentures.
short term note
Manhattan Coil
Corp., Atlanta, Ga.
Feh. 15 filed
ii
used to repay
stock.
each.
Iowa-Illinois Gas &
(letter
common.
For development
Minneapolis.
price.
Maltby-Thurston
June
•
Investors Mutual,
Inc., Minneapolis, Minn.
June 26 filed
4,000,000 shares of capital stock. Under¬
writing"—Investors
20
ments.
Dilly Co., Memphis, Tenn.
(letter of notification)
com¬
proceeds.
& Co. Inc.
LMS vessel into
a
building of dock, etc.
Telephone Co. (7/8)
(by amendment) filed
$125,000,000 refunding
mortgage 35-year bonds, series
D, due 1982. Underwrit¬
ers—To be sold at
competitive bidding.
Probable bid¬
ders: Morgan
Stanley & Co.; Halsey, Stuart & Co.
Inc.;
Harris Hall & Co
(Inc.).
Proceeds—Proceeds will be
June
con¬
Under¬
common.
of land for
New York
writing—To be sold at market
through regular brokers.
Offering—To the Public.
Proceeds—The shares are be¬
ing sold by Nicholas M.
Schenck, President, who will re¬
ceive
A
unit
per
share of preferred and five
shares of
•
-
Price—$17.50
Purchase and reconversion of
ferry boat, purchase
a
Proceeds—For payment of
outstanding notes and
machinery and equipment.
Corp. (jointly);
(bond only); Harriman
Ripley
& Co., and
Dillon, Read & Co. Inc. (stock
only).
Pro¬
ceeds—For debt
retirement, finance new construction
and for
working capital.
y
It's
Chicago
for purchase of
governments.
Brothers;
First
Lines, Inc., Riverhead, L. I.
(letter of notification) 1,000 shares of
common
stock (par
$100). Price—$100 per share. Underwriters—
temporarily postponed.
Corp. of America,
writing—No underwriting.
mon.
New London
Freight
July 1
June 17 filed 50,000 shares
($12.50 par) 5% cumulative
preferred and 250,000 shares
($1 par) common.
Under¬
Interstate Power
Co., Dubuque, Iowa
May 13 filed $19,400,000 of first
mortgage bonds, due
1977, and 3,000,000 shares ($3.50
par)
capital stock.
Underwriters—To be determined
by competitive bid¬
ding. ; Probable bidders: Lehman
&
Nut
•
,
•
money
None.
Lock
—
Sachs
a
outstanding bank loans.
•
.
common
owned. Rights
will be used to
plant at Sunnyvale, Calif., and for other
cor¬
porate purposes.
Offering
The offering will be made with
the co¬
operation of securities dealers
throughout the United
States.
Price, by amendment.
Proceeds
For general
lending operations of the bank.
Business—Operation of
bank whose members
consist
Halsey, Stuart
Treasurer and
•
$250,000,000 of 10-year
bonds.
Underwriting—No
of 44
Underwriter
Libby
preferred for each 36 shares of
expire June 2. Proceeds—The
of
underwriting.
issue of deben¬
Price—$10.50 a share. Proceeds
by L. F. Rodgers, Dallas,
Tex.,
principal stockholder, who will receive
—
complete
Reconstruction
&
common.
—Blair & Co., New York.
—Shares being sold
Morris Plan Corp. of
April 30 filed 100,000 shares (no
par) preferred stock.
America, N. Y.
Underwriter
Mar. 31 filed
Glore, Forgan & Co. Offering — Stock¬
$3,000,000 debentures. Underwriter—East¬
holders of record May 19 will be
man, Dillon & Co., New York.
given the right to sub- 1
Price by amendment.
scribe to the new stock at
the rate of one share
Proceeds—To retire
of
added
for
new
43
Louisiana, Mo.
May 7 filed 80,000 shares ($5 par)
proceeds.
Libby, McNeill
to treasury funds.
SEC to defer action on
its fi¬
of present market
conditions.
Bank
Missouri Edison
Co.,
Beane, N. Y. Price by amendment.
31,870 shares of 4Y2% preferred at
Underwriters—By
sale
Underwriter—Merrill Lynch, Pierce, Fenner &
Pennsylvania
v
June
18 filed
ferred
series
obligations to the sinking fund
(Pa.)
Salt
Manufacturing Co.
50,000 shares
A
stock.
($100 par) convertible pre¬
Underwriter—No underwriting.
Offering—Shares will be offered to the
company's com¬
mon stockholders on the basis
of one share of preferred
for each 15
shares of
held.
Price—By amend¬
Proceeds—For expansion of production facilities
ment.
common
and other corporate
purposes.
Popular Home Products Corp., N. Y.
May 9 (letter of notification) 75,000 shares of common
stock (par 25c.) and
5,000 shares on behalf of Raymond
Spector, President. Price—$3.75 per share. Underwriter
—Eric & Drevers and
Hill, Thompson & Co., Inc., New
Proceeds will be advanced to Staze
York.
Inc., a wholly
owned
subsidiary, and used to eliminate factoring, to
purchase packaging materials more
advantageously, for
working capital, etc.
•
Premier-Mining & Milling Co., Carson City, Nev.
June
23
(letter of notification) 5,000 shares
($10 par)
and 5,000 shares (no par) common. Price—
$10 per unit consisting of one share of preferred and one
share of common. No
underwriting. For mine develop¬
preferred
ment.
•
Proctor
&
Schwartz,
Inc.,
June 24 (letter of notification)
(Continued
on
Philadelphia
10,000 shares of class "A"
page 44)
44
THE COMMERCIAL & FINANCIAL CHRONICLE
(44)
(Continued from page 43)
Price—$25
common.
a
by amendment.
share. No underwriting. For gen¬
eral corporate purposes.
'
March 26 filed $11,077,800 15-year
bentures.
Underwriters
—
2%% convertible de¬
Offering—-For
None.
sub¬
scription by common stockholders in the ratio of $200
principal amount of debentures for each 20 shares of
common
The debentures will be
held.
common
from
Sand
June
.
convertible into
are
of Thermoid
being sold by 13
The
stockholders who will receive proceeds.
•
Public Service Co. of Indiana Inc.
Proceeds—Shares
Thursday, July 3, 1947
23
Dune
Co., Los Angeles
to
1,500 shares (no par)
common
and
100
shares
(no par)
common
carrying
waiver of dividends until holders of 1,500 shares have
received as dividends full amount of purchase price.
(letter of notification)
The
public offering price will be $66.66% a share.
underwriting. To explore for oil.
r
Proceeds—For
repayment
of
*
,
,\
•
:
June
25
of New
Mexico
(7/9)
•
will
May 29 filed $6,800,000 30-year first mortgage bonds and
20,000 shares ($100 par) cumulative preferred.
Under¬
writer for
writers—To be sold through competitive bidding.
able bidders include Blyth & Co., Inc.; The First
tion expenses.
Prob¬
Boston
Corp. and White Weld & Co. (jointly); Otis & Co.; Glore,
Forgan & Co.; Halsey, Stuart & Co. Inc. (bonds only).
Proceeds—For redemption and prepayment of $6,684,220
of indebtedness.
The balance will
be added
to
general
funds to be used for expansion program.
Bids Invited—
Bids for the purchase of the securities will be received
to
up
11
(EDT),
a.m.
at
Room
1600,
70
Pine
Street,
New York.
Quebec Gold Rocks
Exploration Ltd., Montreal
Nov.
13, 1946, filed 100,000 shs. (500 par) capital stock.
Underwriter—Robert B. Soden, Montreal, director ol
company.
Price—500 a share.
Proceeds—For explora¬
tion and development of mining
property.
Raleigh
Red
Lake
Mines,
Ltd.,
Toronto,
Can.
June 9 filed 460,000 shares of stock.
Underwriter—Mark
Daniels & Co., Toronto.
Price—25 cents a share.
Pro¬
ceeds—To finance diamond drilling and land
surveys.
Refrigerated Cargoes, Inc., New York
Feb. 3 filed 25,000 shares ($100
par) 6% cumulative pre¬
ferred and 25,000 shares (no
—John
Martin
Rolph,
Price—The
company.
unit
of
par) common. Underwriter
Vice-President and director of
consisting of
stocks
will
be
sold
at
$105
per
share of preferred and one share
Proceeds—To be used in organization of
common.
/Herrick, Waddell & Co., Inc., New York. Price—$20 a
preferred share and $6 a common share. Proceeds—The
company will receive proceeds from the sale of all the
preferred and 37,500 shares of the common. The remain¬
ing shares of common are being sold by stockholders.
Company will use its proceeds to redeem $250 000 of
Republic Pictures Corp.. New York
Registration originally filed July 31, 1946, covered 184,823
$i
cumulative convertible preferred
($10 par)
end 277.231 shares (50c
par) common stock, with Sterling.
Grace & Co. as underwriters.
Company decided to issue
common stock only, which were to be
for subscription to stockholders of record
Sept.
5, 1946, to the extent of
Issue not to
be
Rochester
one
underwritten.
(N. Y.)
'■
Gas
&
Electric Corp.
Underwriters—To be determined by competitive
bidding.
Halsey, Stuart & Co. Inc.; Blyth & Co.,>
Inc.; Glore, Forgan & Co.; Merrill Lynch, Pierce, Fenner
Probable bidders:
&
Beane; Harriman Ripley; Lehman Brothers; The First
Boston Corp. and
Smith, Barney & Co. (jointly).^Pro¬
ceeds—To redeem all of its
outstanding $7,675,000 bonds
and to repay
$3,500,000 bank loan and to finance new
Construction.
Corporation has temporarily abandoned
the proposed
financing, it was announced June 17, due
"unacceptable" conditions of
sion.
Instead
Rochester
June
4
filed
(N. Y.)
67,500
Telephone Corp.
shares
($100 par) cumulative pre¬
Underwriting—By competitive bidding. Probable
bidders—Merrill Lynch, Pierce, Fenner &
Beane; Harri¬
man
Ripley & Co.; Blyth & Co., Inc.; Glore, Forgan &
Co.-; Shields & Co., and E. H. Rollins & Sons (jointly).
Proceeds—To redeem 4J/2% series A first cumulative
ferred.
& Hardware Co.
pay off demand notes, and for property ex¬
pansion and conversion of telephone
system from manual
to automatic dial
operation in Rochester.
Salant &
28
Salant, Inc., New York
240,000 shares ($2 par)
filed
Underwriter—Eastman,
share
one
offered publicly at $10 a share.
working capital.
•
Sylvan
stock.
Price
■
Seal
Proceeds—For additional
-
Milk,
Inc.,
';';S'
V'C
.
Philadelphia
(7/8)
/
July 1 (letter of notification) 4,000 shares of common
stock (no par). Price—$8. Underwriter—Penington, Colket & Co., Philadelphia. Proceeds to go to selling stock¬
holders.
Textron Inc.,
Feb. 28
Providence, R. f jfv'f
L.»
filed
indefinite.
•
^
;
Thermoid
v.
Co., Trenton,
N.
i.
June 27 filed
161,626 shares ($1 par) common. Under¬
writing—Blyth & Co., Inc., New York. Offering—Of the
total, 111,626 shares will be offered in exchange to stock¬
of
Asbestos
Manufacturing Co.
two shares of Thermoid
cumulative
common
for
convertible preference
the
on
one
the
basis of
share of Amco
stock and
share
one
debentures.
common
reserved for
Underwriter—Carver &
of equipment and for working capital.
•
Van
;
(
,
Norman
Co., Springfield, Mass. (7/17V
June 27 filed $2,500,000 15-year 3% sinking fund deben¬
tures. Underwriting—Paine, Webber, Jackson & Curtis,
of Boston.
Price by amendment.
Proceeds—To repay
bank loans, pay taxes, and for working capital.
Busi¬
ness—Manufacture of machine tools.
Vauze
Dufault Mines,
Ltd., Toronto, Canada
Mar. 31 filed 500,000 shares ($1 par) common.
Under¬
writer—Name to be filed by amendment. Price—50 cents
a share.
Proceeds—For general operating expenses, r
Warren
7
Petroleum
Corp., Tulsa, Okla. (7/9)v
100,000 shares ($100 par) convertible pre¬
June 19 filed
Underwriter—Merrill
Beane,
New
reduce
York.
bank
Price
loans
Lynch/ Pierce, Fenner &
by
and
to
amendment.
Proceeds—
increase general fund3
Business—Manufacture of gasoline.
Weber Showcase
& Fixture Co., Inc.
108,763 shares ($5 par) common.
Under¬
writers—Blair & Co., Inc. and Wm. R. Staats Co. Offer-,
Mar.
31 filed
ing—Shares will be offered for subscription to Weber's
common stockholders. Certain shareholders have waived
subscription rights. An additional 31,320 shares reserved
through Dec. 31, 1948 at $10 per
share.
Proceeds—To retire preferred stock and to re¬
for warrants exercisable
duce bank loans.
Wheeling
300,000 shares ($25 par) 5% convertible
preferred. Underwriters—Blair & Co., Inc., New York,
and Maxwell, Marshall & Co., Los Angeles.
Price by
/amendment.
Proceeds—For payment of $3,950,000 of
bank loan notes; purchase of two notes issued
by a sub¬
sidiary, Textron Southern Inc. in the amount of $1000,000 each, and for working capital. Offering date
holders
capital
Dillon & Co., New York.
held.
:comraon
Inc., parent/at $9 a share in the ratio
preferred for each 30 shares of Segal
Unsubscribed shares of preferred will be
of
of
Co., Inc., Boston.
Price—Debentures 98; common $3.75 /
per share.
Proceeds—For plant construction, purchase
To
,of
112,000 shares of
covers
conversion
ferred.
preferred,
March
:
•
•
|
Utah Chemical & Carbon Co., Salt Lake City
Dec. 20 filed $700,000
15-year convertible debentures due
1962, and 225,000 shares ($1 par) common. The state¬
;
a
New York
Inc.,
Offering—To be of¬
Proceeds—For general corporate purposes
additional working capital.
March 25 filed 25,000 shares of 60 cents cumulative con¬
vertible preferred. Underwriter—Floyd D. Cerf Co. Inc.,
New York P. S. Commis¬
jebmpany June/18 asked SEC permission
to issue unsecured notes.
?
Fasteners
States Television
Co., Inc. and Mercer Hicks & Co.
as
Chicago. Offering—The shares initially will be offered
for subscription to common stockholders of Segal Lock
share for each five held.
May 26 filed $16,677,000 first mortgage bonds, Series L,
due 1977, and 50,000 shares
($100 par) preferred stock.
to
stock
Manufacturing Corp.
Strauss
this issue and
Mfg. Corp., N. Y.
75,000 shares of 5% convertible preferred
(par $4). Underwriters—William E. Burnside &
ment also
19
Albany,
18 filed
fered at par.
Mich.
(by amendment) filed 110,000 shares of 75c
cumulative convertible preferred stock, series B (par $5)
Underwriters—Van Alstyne, Noel & Co. Price per share
$12.50 Proceeds—Net proceeds will be applied to re¬
demption of bank loans and to cover part of cost ol
expansion program.
454,465 shares of
offered
United
term bank
loan, will be used to discharge indebtedness to Domestic
Credit Corp.
Solar
New
heavy oversubscription of the stock is expected by the
June
April 10 filed 32,000 shares ($25 par) $1.40 convertible
preferred and 53,962 shares ($1 par) common.
Under¬
writer—Smith, Burris & Co., Chicago. Price—$25 a pre¬
ferred share and $10 a common share.
Proceeds—Pro¬
ceeds, together with funds to be provided by
Co.,
26
underwriters.
plant at Bristol, Pa.
Service Caster & Truck Corp., Albion,
Furniture
Indiana
vestment firms have indicated interest in
a
5-year debentures and to repay a $450,000 bank loan.
The balance will be used to finance construction of a
new
used
share.
Proceeds—To
lease and
equip manufacturing,
plant at Chicago, and for other operating expenses. The
offering of the stock is expected some time after the
middle of July. It is understood that over 500 retail in¬
(7/8-9)
Corp.
May 9 filed 75,000 shares ($20 par) 5%% cumulative
convertible preferred and 112,500 class A shares ($1 par)
common (also 225,000 shares class A reserved for conver¬
sion and 69,000 reserved for warrants). Underwriter will
make special offering of 12,500 shs. of pfd. to holders of
6% debs, at $18.15 for a limited period. Underwriter—
March
ot
Container
be
for $225,000
of Amco. The bal¬
common
Tucker Corp., Chicago
May 6 filed 4,000,000 shares ($1 par) Class A common.
Underwriter—Floyd D. Cerf Co., Chicago. Price—$5- a
share. The underwriting discount will be 70 cents a
The remaining 120 shares will
For working capital and organiza¬
v
•
one
business.
«nares
preferred.
.
Seaboard
publicly.
will
(letter of notification) 500 shares of preferred
and 235 shares of common.
Price—$100 per unit.
No
underwriting. For working capital.
1,300 shares.
not be underwritten.
public sale
assure
Tingle-Aron-Nahm
June
($50 par)
Price—$50 a share.
Underwriter—Jackson and Co., Boston, will be under¬
convertible
the
common.
offered
ber products.
No
1,420 shares
(letter of notification)
cumulative
Public Service Co.
from
be
it voting control
ance
of proceeds will
be added to working capital.
Business—Manufacture of automotive friction and rub¬
Md.
Sanitary Products Corp., Taneytown,
of bank loan
$11,500,000
'•
notes.
•
shares will
purchase 90,000 shares of Amco
which
-
May 1, 1947 to April 30, 1959. Price—Par
50,000
Proceeds—Proceeds
Oil
for four shares of Amco
common
remaining
'
(W. Va.)
.
Steel Corp.
(7/9)-;
June. 19 filed $20,000,000 20-year first mortgage*/ Series
D, sinking fund bonds.
Underwriter — Kuhn,( Loeb &
Co.,
York.
New
Price' by
Proceeds—To
amendment.
finance construction and improvement program.
Wisconsin
*
Power &
Light Co., Madison, Wis.
;
May 21 filed 550,000 shares ($10 par) common stock to
be
sold
at
competitive
bidding.
Underwriters—By
amendment.
Probable bidders include Glore, Forgan &
Co., and Harriman Ripley & Co. (jointly); The Wis¬
consin Co.; Dillon, Read & Co., Inc.
Proceeds—Part
of the shares are to be sold by Middle West Corp.,
top holding company of the System, and part by pref¬
erence stockholders of North West Utilities Co., parent
of Wisconsin, who elect to sell such shares of Wisconsin
which
common
dissolution
of
will
be
North
distributed
West
Utilities
them
to
upon
the
Co.
Prospective Security Offerings
(NOT
YET
IN
REGISTRATION)
INDICATES ADDITIONS
•
Brown & Bigelow
July 2 Charles A. Ward, President, declared
gram of public financing undertaken in
that
pro¬
was
1946
a
held
Butterworth
June
for
United States
Government,
State, Municipal
are
\|j
an
(H.
W.)
Blair
6- Co;
inc.
NEW
PHILADELPHIA
•
PITTSBURGH
CHICAGO
•
•
ST. LOUISSAN
& Sons Co.
reported company has set up tentative plans
equity financing program when market conditions
more
favorable.
CLEVELAND
FRANCISCO
•
Camden
(N.
J.)
Fire
Insurance
Association
June 30 reported company considering increase in canital stock and issuance of
100,000 additional shares for
.
on
Chesapeake & Ohio Ry.
one
for four basis.
(7/8)
Bids will be received up to noon
(EST)) July 8, at com¬
of
1947.;. Probable bidders include: Halsey, Stuart & Co.
Inc.; Salomon Brothers & Hutzler; Harris, Hall & Co.
'(Inc.)
'
~ ;
■
Duquesne Light Co.
June 30
>
reported company considering refinancing $70,-
000,000 of bonds and $27,500,000 preferred stock.
Prob¬
able bidders: Kuhn, Loeb & Co. and Smith, Barney'&
Co.; Halsey, Stuart & Co. Inc. (bonds only).
Equitable Office Building Corp.
■
pany's office, 3400 Terminal Tower,-Cleveland, for the
purchase of $3,150,000 serial equipment trust certificates
YORK
•
The
30
.subscription by stockholders
BUFFALO
ISSUE
J.
•
and
Corporate Securities
•
PREVIOUS
program will be revised as soon as circumstances appear
favorable to its successful completion.
•
BOSTON
SINCE
in abeyance due to unfavorable market conditions.
Donald
Duncan,, trustee,
has
j/
--.
(7/7)
v?v.
invitations
issued
for
proposals from bankers or others for the underwriting
of
a
new
754,000
issue to replace
of
outstanding
the corporation's present $4,-
debentures.
Bids
ceived at the office of the trustee, 120
York City, up to 3 p.m.
come
U.
S,
Court
holders will
file
(EDT)
for consideration at
up
a
on
July 7.
hearing
will
on
The
bids/ydll
July 8 in the
House, Foley Square, New York-.
be
be/re¬
Broadway^NeW
»
given an opportunity until July
Stocky
15 to
proposed alterations or modifications of the plan of
reorganization, based ori the bids received for the new
bonds.-
-
"
•
.
„
A
...
,«
•
Erie
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
Volume 166
RR.
stock
(7/15).
.
t ,t
^
The
.
•
Glens
Falls
tional
•
•
company
stockholders in ratio
Probable
of
one
for
new
Stores
July 2 reported
plans
company
to replace proposed
which
with
group
would
sizable
a
Max
issue remaining un¬
of the
to
ings
primarily
attributed
is
to
York
..to -provide
better chance for
.work. In competitive bidding, it
is* argued,
-
-overbid-
-tendency is
accordingly
the
for
business
the
the
on
month
current
bring
and
*•"
\
particularly in view of the
that July is a popular vaca¬
month among both officials
fact
tion
and
.*
employes.;
/
:
■
A total of 11 corporations are
lined up as prospective issuers,
provided of
to
pens
ent
course
'to
plans
that
on
pres¬
the
of
end
business.
In
contrast
which
is
a
the
situation
there
year ago
rather marked dearth of pro¬
a
jected
company stock issues
moment.
The 11 corpora¬
new
the
at
with
prevailed
tions
facing the line
now
seasoned
makes
organizations
.
for
and
-
all
which
different
a
palatable picture.
are
more
.
jected by New York Telephone
Co., involving $125,000,000 of
first
new
mortgage
bonds
to
mature in 35 years.
The
company
had
originally
proposed to market that amount
of
new
debentures, but in defer¬
to
ence
the
N.
Y.
/
The second undertaking, sched¬
uled first for
State
Public
competitive bidding
Also
can
Tuesday, North Ameri¬
on
This
is
the
type of offering
usually attracts aggressive
bidding by bankers and the situa¬
tion promises to produce just that
with no less than six groups indi¬
which
cated
in the
as
Once
;/
In
Generation
a
*
Oklahoma
City officials got a
surprise when they opened bids
for $5,000,000
bonds offered on
Tuesday." But it was a pleasant
surprise for'the city fathers since
the two top bids were an abso¬
petitive sale of 133,383 shares of
stock
Electric
of
the
Illuminating
Cleveland
Co., in
an¬
other of those divestment under¬
takings.
lute
"tie."
The
between
the
issue
split
was
"dead
ities and Exchange Commission
to conduct stabilizing operations
in
the shares
York
and
changes
ation.
on
both the
Cleveland
as
a
New
Stock
Ex¬
part of the oper¬
The shares have been
selling
currently on the "big Board" at
prices around 42 y2 giving the deal
an /indicated
value
at
market
levels of around $6,700,000.
groups.
tie,
discovered
was
commercial
bank
having submit¬
ted identical bids.
Municipal
similar
a
men
could not recall
instance
since
two
groups tied about 20 years ago for
an
issue of $11,000,000 of West¬
chester
Co., N. Y. bonds.
Halsey, Stuart Offers
Milwaukee Equipments
syndicate headed by Halsey,
Co., Inc., on July 1 made
public offering of $6,000,000 Chicago, Milwaukee, St.
Paul & Pacific RR. 1%%
equip¬
Stuart &
a
formal
ment
The
trust
certificates
certificates
Preferreds Not Popular
series
Z.
to
yield 1.10% to 2.20% according to
maturity.
Others making the of¬
fering
were:
Hornblower ; &
,
Weeks; Otis & Co., Inc.; R. W.
Pressprich & Co.; L. F. Rothschild
& Co.; Gregory & Son,
Inc.; First
of Michigan
Corp.; Freeman &
thority for
the
opinion
vestors
not
keen
are
Julien Collins & Co. and The First
are au¬
that
about
support
of
point-to
their
the
contention
In
recent
experiences
of several groups which have un¬
dertake^ such pieces of business.
The group handling Toledo Edi¬
son's preferred has been extend¬
ed for 15 days, that which hand¬
led the
Power
Central Arizona
Co.'s
Light &
equity is re¬
with a good part
senior
portedly hung
up
of the deal and bankers who
keted
Dayton
preferred
are
Power
&
Cleveland Corporation.
in¬
they
mar¬
Co.,
Association
the
Jacquin
&
successor
with
&
Co.
to
„
Co.
was
Lewisohn
Mr. : Jacquin
senior partner.
Gruntal
and
Curb
Exchanges and other leading
as
'
a
*•;
was
formed
and
that
Richard
come
C.
associated
Dean
se¬
Witter,
Jr.
Vivian have
be¬
with the firm
as
Light's
registered
representatives
New York
office, 14 Wall Street.
in
the
which Benedict
in
Assistant
as
charge
of
,;
sales
promotion
,
of
un-
of
widely
cir¬
engaged
mu¬
Joseph G. Lang
James
,
Kase
Bruns-Nordeman Corporation, has
Manager of the Municipal Depart¬
ment of the Guardian Trust Co.,
Nordeman,
In 1934 he and George
Cleveland.
organized the firm of
& Co., who were
active in the underwriting
and
distribution
of
Ohio
municipal
Johnson
B.
Johnson,
been
bonds.
by
Jacques
President.
Mr. Lang
has been associated with the com¬
pany since
1933.
;f
During the,war Mr. Kase was
with the Federal Re¬
serve Bank of Cleveland, in fur¬
General Foods Pfd.
Issue
associated
therance of its
Regulation V Loan
He was also associated
Administra¬
program.
with the War Assets
attorney for the Cleveland
and Cincinnati regional offices in
tion
announced
Kase
as
liquidation of governmentproperty.
owned real
1918 to continue a business orig¬
J.
A.
White
and
Company,
inally founded in 1880 by several whose main office is in Cincinnati,
firms
Joseph G. Lang
Vice-President
in
man¬
Ohio
the
in
Gruntal
Publicly Offered.
Goldman^ Sachs & Co. and Leh¬
Brothers
man
July
shares
$3.50
and
offered
1
of
preferred
at $100.50
accrued
on
250,000
Foods
Corp.
General
cumulative
(no par)
associates
publicly
stock
share and
per
dividends.
V
.
Net proceeds may be expended
in payment of part of the
the company's addition,
cost of
replace¬
ment and renewal
prpgram and to
meet the increased cash
require¬
ments of the company's operations
occasioned
primarily by higher
specialize in underwriting Ohio
With * the municipal bond issues.
They are
rapid growth of its business, the also publishers of a book on mu¬
company became an active mem¬
nicipal investments entitled "An cost inventories.
Bank loans ag¬
ber of securities and commodity
Analysis of
Municipal Bonds," gregating
$5,000,000
made
for
exchanges in leading cities.
The written by the founder and pres¬
these purposes will also be repaid.
firm's current plans call for fur¬
ent head of the firm, J. Austin
The preferred stock is redeem¬
ther expansion of its brokerage
White.: Each year the firm com¬ able at prices
starting at $103.50
facilities.
/
piles and distributes, as a supple¬ per share, and also through the
Other partners in the firm are: ment to this book, "White's Rat¬
sinking fund at prices beginning
Benedict
H.
Gruntal,
Morris ings for Ohio Municipal Bonds,, at $102.
Hartig, Edwin A. Gruntal, Harry furnishing detailed ratings on the
Following completion of the fi¬
F.
Kattenhorn, Louis Kohl and bonds of the cities and counties
nancing, the company's outstand¬
Edward Necarsulmer, Mr. Edwin of Ohio.
ing capitalization will comprise
Gruntal,
Edward
Necarsulmer
$27,773,941 in term notes; the
and Mr. Jacquin are members of
250,000 shares of new preferred
the
New
York
Stock Exchange
and Louis Kohl holds a member¬
stock; and 5,575,463 shares of com¬
A successful offering of an is¬ mon stock
ship on the New York Curb Ex¬
(no par).
sue of debentures for the Federal
change.
■
•.
'
;
:
The Corporation was incorpo¬
Intermediate
Credit Banks was
had
been
a
partner.
FIG Banks Place Debs.
made June 17 by
Jos. Reynolds Admitted
To Benj. Bartlett Go.
D.
Street, members of the New York
and
$53,680,000 1.10% consolidated
July 1, 1947, and
of
Cincinnati
Stock
Exchanges,
the admission of Joseph
Reynolds to general partnership
in the firm on July 1.
announce
Exchange; Chairman of
Executive
Committee
and
rated
in
$38,455,000 were used to retire a
amount
like
of
due
debentures
is for
As of July
July 1, 1947 and $15,225,000
new
money purposes.
1947,
1,
total
the
debentures
>o
u
t
s
t
of
amount
a n
d in g
was
1922
Co., Inc.,
business
1895.
was
as
of
name
1929.
The
the
a
company
corporation
are
manufacture
sale of
and
a
grocery
most
aged
its
in
the
processing
or
line
products
part
and
engaged
diversified
are
form.under
vertised brand
$370,975,000.;-
Cereal
outgrowth of
changed to its present title in
subsidiaries
the
Postum
as
the
originally established in
The
debentures dated
April 1, 1948. The issue was
OHIO. —Benja¬
Bartlett & Co., 313 Vine
placed at par.
Of the proceeds
CINCINNATI,
min
Charles R. Dunn,
York, fiscal agent for the
banks.
The financing consisted
New
due
of the Vulcan Corpora¬
director of United States
Shoe Corporation, and Trustee of
the Legal Aid Society of Cincin¬
tion;
nati.
curity and commodity exchanges,
announce
announces
Corp.
The election of
A.
and
of food
which
in
sold
for
pack¬
nationally
adf
names.
\
director
said to have closed
of
Exchange Firms for two
years. He resigned from the Ex¬
change early in 1946 to become a
member of the Exchange and a
partner of Lewisohn & Co.
In
January of. 1947,
the firm of
the
Dean Witter & Co., members of
York. Stock
Company
Bruns Nordeman
J.
—
formerly
President
nati Stock
Join Dean Witter Go.
New
Jacquin, Jr.
Mr. Reynolds is Chairman of the
Board of Trustees of the Cincin¬
Wilier, Jr. and Vivian
the
Max
B.
pre¬
ferred stocks at the moment.
of
as
- OHIO
nicipal f inane-^
i n g
for
30
years. He was
priced
were
Co.; Wm. E. Pollock & Co., Inc.;
Astute market observers
as¬
Exchange,
having
been
handling of matters
involving foreign business, mem¬
berships
and
partnerships,
ar¬
bitration, taxation and legislation.
He was also special assistant to
heated"
-
A
The big holding company has
authorized by the Secur¬
been
been
active in the
&
the
in'
Vice-
formed
Lang Officer of
cles, having
sec¬
Dreyfus,
Opens
opening of a Cleveland office on
July 1, in the National City Bank
Kase is
the New York
the
"
known in Ohio
of Stock
running.
of
of construc¬
care
Cleveland. Mr.
a
Stock
Mexico, plus 20,000 shares of
preferred stock.
Co. will open bids in the com¬
common
sistant
issuance
Johnson, Kase
Company of
former
a
t
.
&
Jacquin
New
new
White &
financial
President
Another
Cleveland Elec. Ilium.
;
.
is
■
contemplates
company
President of
ner.
Mr.
Jersey Gas Co.
reported
James Kase,
for me r 1 y
part¬
retary and
Commission, it substituted
the bonds.; Bids on the issue are among the runners-up with an
investment banking group and a
slatecj to be opened next Tuesday
as Usual it is expected that
syndicates headed by the usual
competitor banking firms will be
seeking the bonds.
as
CLEVELAND,
der
that
firm
general
involves $6,800,000 first mortgage
bonds of Public Service Corp. of
Service
and
the
26
tion expenditures.
agement
Jacquin,
Jr., has been
admitted into:
assistant
..
this month's poten¬
offerings is that pro¬
new
-
4'"'
.
$4,000,000 first mortgage bonds to take
Building,
Max
Corp., which is
negotiated deal.
a
-•
hanges;
throug h o u t
the
country,
announce
Next
Warren Petroleum
Topping
tial
'
.
exc
over¬
Offerings
Ex¬
d i t y
commo
to
Wednesday will bring, to
market two comparatively small
issues, one an industrial preferred,
100,000 shares of $100 par cumu¬
lative
convertible
preferred
of
;
nothing hap¬
change in
cause a
Small
•
_
• •
j. .
V,\.f'
'
Two
and
bond
pricing.";-'-
promises __tokeep underwriting
bankers pretty much up on their
toes,
ultimate
about
Curb
changes and other principal stock,
a
RR.
Office Under Kase
New
and
South
.
June
~ J. A. White
New
Stock
•
par,
:-"V Vv"
competitive bid¬
of
effects
Pennsylvania
June 25 reported
company plans sale of $21,885,000 addi¬
tional equipment trust
certificates.
Probable bidders:
Salomon Bros. &
Hutzler; Halsey, Stuart & Co. Inc.
underwriter,
•;"<
Gruntal &
'
schedule
'«■» "
■ -
Co., 30 Broad Street,
York City, members of. the
the
Rep
new
-
ding which some feel should be
left to negotiated sale in order
Reporter's
Potential
-
Partner in Gruntal.
offer¬
preferred
:
Probable
Jacquin, Jr. Is
distributed at that time.
Coolness
stockholders at not less than
underwritten..
be
The First Boston Corp.
issue of 100,000 shares of preferred
block
•
from
par
(7/9)
Hutzler; Harris, Hall & Co. (Inc.).
Pittsburgh
Company proposes sale of 180,000 additional
standing.
out. their
(Ky.)
National Union Fire Insurance Co. of
RR.
company has asked the ICC for authority to issue
$1,350,000 of equipment trust certificates. Bids will be
received up to noon (EST) at
company's office. Cleve¬
land, for the purchase of the certificates.
Probable bid¬
ders include:
Halsey, Stuart & Co. Inc.; Salomon Bros &
t
shares through rights to
issue of debentures
new
1
Chicago & St. Louis
45
The
$20 to $5, to effect 4-for-l split up of 55,000 shares out¬
Baltimore
Corp.,
New York
•
capital from $1,100,000 to $2,000,000 and change
underwriter, Morgan Stanley & Co.
Lerner
Co.
.«•
Aug. 20 stockholders will vote on increasing authorized
10 held.
every
Electric
&
Gas
*
■
reported company plans tentatively to issue
$4,500,000 in additional bonds, probably next .year, for
construction and expansion purposes.
Co.
Insurance
4 *
Fenner & Beane.
Louisville
July
plans issuance of 150,000 addi¬
capital shares to be first offered for suoscription
July 1 reported
to
Y.)
(N.
•
Probable underwriter, Merrill Lynch,
(par $100).
Pierce,
has issued invitations for bids to be re¬
ceived July 15 for a conditional sale agreement in the
amount of $311,750.
The proceeds from the sale will,
cover approximately 80%
of the cost of three 660 h.p.
and two 1,000 h.p. diesel-electric switching locomotives.
company
(45)
the
James J. O'Connor,
come
the
&
firm's
Co.
as
office
co-manager
in
the
of
Savoy
'
President of
J. J. O'Connor & Co., Chicago in¬
vestment firm, died at his home at
the age of 55.
Special
Gumbel, Jr., has be¬
associated with Francis I.
du Pont
James J. O'Connor Dead
With Sutro & Co.
Gumbel With du Pont
Horace S.
Plaza
bel
Hotel, New York. Mr. Gum¬
was
formerly with Reynolds
& Co. and in the past was a
not*
in
TTamll
-Rmtliprc
part-
SAN
Glenn
to
the
to The Financial Chronicle
CALIF.
FRANCISCO,
E.
Burton has been
staff
Montgomery
of
Sutro
&
1
4
added
Co., 40t
Street, members of
the New York and San Francisco
Stock
Exchanges and other lead¬
ing national exchanges.
46
THE COMMERCIAL & FINANCIAL CHRONICLE
(46)
Thursday, July 3, T94?
Indications of Current Business
statistical tabulations
The following
shown in first column
are
cover
either for the week
or
month ended
Latest
AMERICAN
STEEL
AND
IRON
Previous
Week
INSTITUTE:
Activity
production and other figures for the latest week
Week
on
that date,
Month
Year
V
Ago
in
or,
month available (dates
or
of quotations,
cases
of that date):
are as
AMERICAN GAS ASSOCIATION—For Month
May:
■ .. ■
Ago
Latest
steel
-July
(percent of capacity).
operations
Equivalent to—
Steel ingots and castings produced
72.0
5
95.6
87.2
97.0
Total gas sales
July
(net tons)—.
1,697,400
1,672,900
1,259,900
s
1,536,800
June 21
(bbls. of 42 gallons each)-——
Crude runs to stills—uaily average (bbls.)
Gasoline output (bbls.)
;
-v
output—daily average
5,024,850
5,113,200
5,114,500
June 21
5,078,000
5,164,000
4,970,000
15,682,000
15,695,000
1,972,000
14,927,000
2,010,000
14,371,000
2,163,000
5,942,000
5,981,000
5,518,000
1,915,000
5,580,000
8,598,000
8,960,000
8,292,000
8,403,000
91,877,000
93,356,000
97,827,000
92,374,000
14,041,000
13,094,000
11,074,000
June 21
40,835,000
38,385,000
35,212,000
June 21
48,766,000
47,812,000
44,499,000
14,054,000
37,067,000
46,071,000
oil
Gas
(bbls.)
—
at
(bbls.)
<
domestic
.■gallons'
895,292
8S0.605
Refined
700,790
696,442
684,996
$113,164,000
41,868,000
54,617,000
84,010;000
74,330,000
52,620,000
58,547,000
S. BUREAU
46,459,000
29,891,000
Beehive
coke
.
(tons)
28,656,000
15,544,000
of
180,116,000
169,257,000
156,848,000
—1,514,000
-10,579,000
—285,000
miles
1,155,000
113,500
134,700
RRs.)—
represented
i-U—
$566,627,017
operating
expenses
$543,301,248
$549,367,970
$507,909,532
78.80
76.53
'89.64
Operating
ratio—percent
Taxes
Net
—
$73,195,340
oper.
before
after
income
income
charges
(est.)
PRICE
INCOME
INDEX
charges-
FOR
FAMILIES
All items
277
248
155.8
Electric
~
;
203.9
4,676,300
674,748
4,429,109
'.
COMPOSITE
vegetables
133.5
178.9
138.6
176.3
sweets
185.t
189.5
~
200.5
-
—
140.3
200.4
:
.
188.9
_t>.
-
and
202.6
207.0
' V
125.4
•
227.8
179.3
126.1
179.3
184.4
Clothing
PRICES:
>115.2
.
171.5
:
Fats and oils
Sugar
IRON AGE
142.6
,
178.9
Fruits and
4,132,680
131.7
-
153.4
Beverages
June 28
(in 000 kwh.)
output
156.1
188.0
154.2
Eggs
EDISON ELECTRIC INSTITUTE:
V
I
'___
Dairy products
•
$19,320,000
15:
1--
products
bakery
$10,722,120
$43,600,000
187.6
Meats
300
256
May
—
and
•$35,612,089
-
LARGE
of
All foods
Cereals
184.6
135.9
,
155.7
,
Finished
steel
Pig Iron
(per gross
Scrap steel
(per
(per
ton)
gross
2.85664c
2.85664c
$33.15
$33.15
$33.15
$26.12
34.75
33.25
30.42
Rent
2.73011c
19.17
1.85664C
June 24
June 24
June 24
lb.)
ton)
Gas
and
.
PRICES
(E.
k
M. J.
QUOTATIONS):
Straits
tin
(St.
Zinc
York)
U.
8.
92.4
14.550c
80.000c
80.000c
80.000c
15.000c
15.000c
8.250c
14.800c
14.800c
8.100c
10.500c
10.500c
10.500c
EDISON ELECTRIC
8.250c
Kilowatt-hour
PRICES DAILY AVERAGES:
of
July 1
121.36
121.42
121.67
124.11
July 1
116.80
116.80
117.00
of
118.80
July 1
—
139.1
127.8
»
153.7
127.2
,
•
121.88
121.88
122.50
123.56
120.22
120.43
April
1
ultimate
DEPT.
of
;
17,771,930,000 15,233,420,000
34,715,611
12,614,000
11,347,000
6,532,000
6,082,000
5;629,000
5,997,000
152.9
LABOR:
of
>$278,447,400
36,590,165
154.0
'
April 30
PAYROLLS—U.
$313,073,500
36,794,388
12,523,000
as.of
$310,762,400
6,526,000
customers
AND
OF
Month
Estimated
17,664,962,000
ultimate customers—month
April
EMPLOYMENT
corporate
V
INSTITUTE:
sales—month
Revenue from
No.
—J,
182.4
138.7
-
92.2
143.7
181.6
52.000c
15.000c
14.800c
June 25
at
92.5
142.2
-.
noi
:
118.4
14,150c
23.625c
June 25
Bonds-
Govt.
Average
21.225e
21.425c
June 25
,
(East St. Louis)
MOODY'S BOND
Aaa
21.225c
21;425c
June 25
at
at
at
Louis)
21.225c
June 25
; 109.0
117.6-
and ice
Miscellaneous
June 25
-
York;
(New
(New
Lead
Ice
Housefurnishings
Electrolytic copper—
Domestic rexinery at
Export refinery at
Lead
109.2
electricity
Other fuels
METAL
'
!
-
Fuel, electricity and
:
MODER¬
IN
CITIES—1935-39=100—As
.
$72,782,112
.
227,038
-
$82,448,429
$58,409,688
$32,600,000
98,900
1,221,000
123,200
;
;
:
railway
Net
11,872,000
1,197,000
12,875,000
!
i
ex¬
(bbls.)J—
AMER.
240,000]
April:
.
of
stock
(ASSOC. OF
CONSUMERS
12,820,000
1,084,000
12,900,000
..June 21
AVERAGE=100
3,353,000
227,679
SALES—FEDERAL RESERVE
STORE
SYSTEM—1035-39
5,597,000
$717,826,034
,
DEPARTMENT
6,812,000
6,146,000
(bbls.)
227,038
29,052,000
6,161,000
June 21
—June 21
-June 21
imports
9,323,000
$689,456,229
ATE
(tons)
Pennsylvania anthracite (tons)
8,444,000
revenues
/ |
OF MINES AND NATIONAL COAL
and lignite
9,263,000
146,398,000]
136,835,000'
operating
ASSOCIATION):
coal
80,000
144,637,000
134,693,000
9,864,000
\
80,000
-10,953,000
-
Total
44,596,000
33,488,000
40,892,000
^une ^
—June 26
Bituminous
42
Total
$128,60^000
June 28
and municipal
Federal
(U.
$94,488,000
-June 26
**une 26
construction—
DOAL OUTPUT
99,027
__
decrease—all
or
Month
%
$143,470,000
69,090,000
Public construction
State
166,077
151,502
163,193,000
152,160,000
of
(bbls.)
products
CLASS I RHs.
•
S.
(bbls.
oil
Indicated consumption—domestic and
port (bbls.)
858,423
715,343
NEWS
Private construction
preductlon
each)™„-—_
crude
Crude oil imports
RECORD:
U.
1,763,09?
206,814
INSTITUTE—
output (bbls.)
Natural gasoline output
(bbls.)—
Benzol
output
(bbls.)
Number
Total
2,368,287
128,738
-
901,296
June 21
-June21
of cars)--
ENGINEERING
CONSTRUCTION,
ENGINEERING
CIVIL
PETROLEUM
Domestic
Increase
freight loaded (number of cars)——
freight rec'd from connections (number
Revenue
Total
RAILROADS:
ASSOCIATION OF AMERICAN
Revenue
therms)™
therms)
—
June 21
—•—
at
(bbls.)
oil
fuel
Residual
at
distillate fuel oil
and
<M
2,028,200
1,998,796*
185,051
therms)-™
(M
Ago
-
2,726,603
Month of March:
4,839,000
June 21
Kerosine
sales
gas
AMERICAN
4,949,500
June 21
(bbls.)———
*■
June 21
Gas oil and distillate fuel oil output (bbls.)
June 21
Residual fuel oil output (bbls.)™.
i—-———
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
June 21
Finished and unfinished gasoline (bbls.) at
output
Kerosine
(M
Year
Month
.
2,312,585
INSTITUTE:
PETROLEUM
oil
Crude
sales
Manufactured gas sale3
Mixed
AMERICAN
(M therms)™
Natural gas
.
Previous
*
Month
_
Indicated
S.
!
,
April:
number
of
production workers
manufacturing industries—
Aa
July 1
A
July 1
116.41
116.41
116.41
118.60
July 1
109.42
109.24
109.42
112.56
July 1
111.44
111.25
111.81
116.02
July 1
118.40
118.60
118.60
119.20
Durable goods
Nondurable goods
July 1
120.84
120.84
120.84
121.46
i
Employment indexes—
Baa
Railroad
Public
Group
Utilities
Group
Industrials Group
120.02
121.25
>
in
All
manufacturing
All
S.
Govt.
manufacturing
goods
-
Nondurable
Bonds
:—-—_
—1—
Average corporate
1.59
July 1
.
1.59
2.81
July 1
2.56
1.57
1.47
2.81
2.80
_
2.53
2.48
Aa
July 1
2.65
2.64
2.63
2.59
A
July 1
2.83
2.83
2.83
2.72
3.20
3.21
3.20
All
5,718,000
138.5
180.7
:
180.9'
130.9
„•
goods
Payroll indexes—
2.71
2.56
<
:_
t,
Durable
MOODY'S BOND YIELD DAILY AVERAGES:
U.
—
132.8
155.9
124.8
-
I v
:
manufacturing
310.4
313.9
254.8
-
3.03
Baa
July 1
Railroad
Public
—J
Group
Utilities
July 1
COMMODITY
INDEX—
3.09
3.10
3.07
2.85
July 1
2.73
2.72
2.72
2.69
July 1
—
Group
Industrials Group
MOODY'S
•'
2.61
2.61
2.61
2.58
403.4
400.0
393.8
Durable
1
371.6
June
goods
350.2
Production
Stocks
(bbls.)
ITY
FERTILIZER
INDEX
BY
ASSOCIATION—WHOLESALE
14,566,000
14,205,000
12,650,000
12,133,000
15,369,000
21,330,000
*22,178,000
15,974,000
74 %
(bbls.)
*69%
GROUP—1935-30=100:
,»
PRICES
June 28
and
:
—
Farm products
152.7
279.2
163.1
249.4
Livestock
248.9
343.2
190.3
233.1
232.1
June 28
———
172.2
172.2
226.2-
172.2
161.1
159.3
157.6
218.7
215.5
and
drugs
~
_
Fertilizers
185.3
180.9
June 28
materials
148.5
-June 28
materials
Chemical
Fertilizer
148.7
155.9
155.6
June 28
126.0
125.9
149.4
157.4
groups combined
134.6
134.6
134.6
125.3
125.3
197.1
196.5
PAPERBOARD
Orders xeceived
Production
Oil-bearing
151.7
♦
—
products
__
Percentage of
I—III
I
Hill
activity
Unfilled orders
(tons)
at
I
OIL, PAINT AND DRUG REPORTER PRICE
INDEX—1926-36
AVERAGE=100
june 21
166,639
June 21
146,726
animals
182,909
183,105
157,746
179,001
103
101
582,603
560,916
143.5
144.8
RETAIL
142.7
*
FOOD
DEPT.
All
LABOR—1926=100:
products
Hides
and
Textile
Fuel
and
Metal
leather
and
metal
III—III
and
allied
commodities
177.2
140.0
162.6
162.4
160.3
169.4
167.0
166.4
338.4
138.5
138.3
IN
INDEX
108.3
104.5
104.3
Special groups—
142.3
141.8
177.0
126.0
131.0
129.6
129.4
110.4
June 21
115.8
116.0
116.5
178
208
-
•
231
288
227
223
•
199
260
_
'
194
'
*
187.6
'
and
133.5
194.6
120.9
-
97.9
">
171.5
and
vegetables—
261.6
*
Canned
_
138.6
-
176.3
\
140.1
200.4
-
185.1
200.7
.
.
172.3
1
218.3
"•;••;
178.9
•
178.9
209.5
161.5
-J
v
-207.0
:—
138.7'
.
.
177.1
_
:____—
114.0,
-
206-5
-
255.1
i_—
—
203 ;5
,
179.6
—
canned
202.6
t
209.6
_____
——
Dairy products
Fruits
115.?
•'
204.2
—'
:
:
; -Eggs1:—
96.9 ^
142.6'"
197.1
_
fresh
-
;
153.4
-
203.9
.
veal
Chickens
'188.0
154.2
-
and
Fish,
127.7
124.4
—~—
bakery products
Lamb
'
-
t
111.0
176.1
124.3
.June 21
!.,1
141.5
176.3
.June 21
and
Pork
123.5
-June 21
II
230
207
'
-
15:
_•
—
Beef
87.1
104.4
".
213
LARGR.
Meats
113.7
'
.June 21
II
products
Housefurnishing goods
Miscellaneous
178.3
.June 21
III
products
Building materials
Chemicals
112.4
178.7
.June 21
~
lighting materials
146.9
-June 21
products.--
products
147.6
-June 21
—
Foods
147.8
.June 21
Farm
foods
Cereals
-June 21
-
CITIES—U. S. DEPT. OF LABOR—1935- "
135.8
t
PRICES—U. S.
All commodities
;
'
203
219
1939=100—As cf May
WHOLESALE
327
255
eggs
PRICE
219
•
241
J
229
;
and
185
326
_
.
205
—
products
Poultry
210
261
'
crops
Dairy
97
512,578
'
:
222
275
205
eggs-—™—__-—i—~
—
Truck
102
487,877
>
233
Fruit
16M48
june 21
June 21
.June 26
and
370
286
338
products
216
270
.
278
——.i
Meat
Seasonally adjusted:
148,740
318
—j
195
■
241
215
—
crops
and
200
:
-390
228
—
223
276 "
218
:.*"'
275
Poultry
(tons)—:
240
!
218
268
*
v
272
—
crops
Livestock
ASSOCIATION:
(tonsi
1
'
Truck
Dairy
NATIONAL
272
253
——.—_
Cotton
Fruit
109.0
197.9
i
390
119.8
126.6
271
262 '
-
grain and hay__
grain
>•
June 28
!
;
.
Feed
127.5
June 28
__
AGRICUL¬
1914=100—
'
.
grain
114.8
June 28
machinery
OF
Feed
168.3
-
128.0
DEPT.
1%9-Jiily
Food
123.5
188.2
>■
S.
15:
productc
172.3
-June 28
Building
farm
140.3
218.6
June
FARMERS—INDEX
Crops
137.4
June 28
commodities
Metals
All
163.6
June 28
Miscellaneous
Textiles
of
Unadjusted—
293.6
288.1
BY
TURE—August
As
183.5
359.0
254.9
June 28
—
Fuels
245.6
356.1
256.1
RECEIVED
NUMBER—U.
150.6
215.9
273.5
June 28
r,—
Grains
All
215.6
203.5
273.5
June 28
Cotton
Farm
216.3
207.3
June 28
June 28
oil
217.4
June 28
oils
Cottonseed
64%,
COMMOD¬
Foods
Fats
234.4
.15,414,000
(at end of month)
Capacity used
NATIONAL
?75.7
278.3
PORTLAND CEMENT (BUREAU OF MINES)
—•Finished Cement—Month of April:
Shipment (bbls.)
24^
350.2
271.5
-
_.
Nondurable goods
"T,;
199.6-
172.6
127.8
"
Raw
Manufactured
>
-
materials
"
.June 21
Semi-manufactured articles
All commodities other than
All commodities other than
"II
farm
productsi
farm products
~
161.5
161.2
160.3
126.0
.June 21
-II11111""
products
142.7
142.3
142.6
104.4
.June 21
—
—
and~foodsIII"
142.9
142.9
142.1
.June 21
141.1
141.0
140.4
.June 21
132.1
132.1
132.2
•—
sr' -a "■Or-'r;' ■* "t
*
»
;*'V
T
V
lr
*■*&****!
ttrm
~
.
106.3
105.1
"•*•> -»
268.1
Fats
.
269.7
171.8
189.5
125-4
'
Beverages
107.7
-
Dried
*
—
1
188.9
and oils
Sugar
and
__.
sweets
.•^♦Revised figure.;:
• -;r-;
200.5
—
179.3
——
l.'a'
,>
:
,
227.8
179.3
*
-
^
126.?
135.S^_
Volume
Number 4608
166
THE COMMERCIAL & FINANCIAL CHRONICLE
■*>-m
(47)
1
No Immediate "Dollar Crisis"
(Continued from
which
the International Mone¬
tary Fund and the International
Bank, have no more than begun
Sources,
Hoover estimated the
should
be
loans and gifts
"un¬
added
private
of perhaps $1 bil¬
the International Bank and Fund.
The full
expended balances of appropria¬
tions and various credit commit¬
ments to foreign nations" on July
potential of money so far
unused under existing programs
runs to at least $12 billion as indi¬
,1,
cated in the
1947,.. at
billion,
$5
over
to
following table:
i
*
Available or
'
■
■'
••
Potentially
;..
June, 1947
Export-Import Bank loans
3,500_',
Lend-lease "pipeline" credits.1,500
{Surplus property credits
Ship sales credits
Loan to
"110
Monetary stabilization credits___-
287
International Institutional Lending
International Bank
3,500(d)
International Fund
will
3,166
3,442
relief
Relief in occupied areas
Philippine aid
program___
1,000(e)
695
Refugee Organization
74
(a)
Shipments
(c)
billion;
held
balance
up,
through March 31,
The U. S.
partly
Sources:
"170(g)
be
such
of
not
likely
quota
contribution
estimated;
(e)
available
in
Assembled
of
the
from
to
be
utilized;
miscellaneous
year
V:
■
sources
COMMON STOCK
As
cost;
ending
A
of
June
of
the
March
31,
Bank is $8
Estimated
expendi¬
30,
(g)
1948;
$100
v:a*
including
the
Stock
July t,
business, June
of
this
Bond
per
main open.
income
Company,
Checks will be mailed.
R. A. BURGER, Secretary.
The
FE
Board
TOPEKA AND
RAILWAY
the
York, N. Y., June 26,
Cents
of
ers
of
on
the
said
Directors
per
Common
from
and
an
security
close
regular
July
Dividend
of
of
Caoital
Stock
1947.
checks will
Capital
orders
D.
close
I" &
share from real¬
profits
payable
be
of business
mailed
Stock
who
to
of
of
Board
The
July 3, 1947,
clared
Directors
Common Stock,
ust
1,
record
ii {■
has de¬
quarterly dividend of
a
the outstanding
payable on Aug- —
1947, to stockholders of
on
July
11,
1947. The
transfer books will not close.
AN&USS
holders
have
this
at
July
as
<0* ftotOfifORATED'
of
llll
therefor
CORPORATION
Extraordinary Distri¬
50c per share on
registered
at
Company
25.
Common
suitable
the
PRODUCTS
investment
..iiiiHIH
.
business
books
NATIONAL DISTILLERS
1947.
dividend
a
($1.50)
r
Distribution No. 36 of 9 cents
share
COMPANY
has
this
day
de¬
One
Dollar
of
and
Fifty
share,
being Dividend
No.
138,
on
the Common
Capital
Stock of
this
Company, payable September 2, 1947, to hold¬
clared
COMMONWEALTH OF PENNSYLVANIA
THOS. A. CLARK
filed
office.
48
wall
street,
new york 5, n. y.
June
Treasurer
26, 1947.
C.
WILSON, Assistant Treasurer. "
120 Broadway, New York 5, N. Y.
TURNPIKE REVENUE 3%% BONDS
Notice is hereby given that pursuant to the terms of
Trust Indenture dated
August 1, 1938 between
the
Pennsylvania Turnpike
Commission
and
FidelityPhiladelphia Trust Company as Trustee, Pennsylvania
Turnpike Commission hereby gives notice of its inten¬
Cities Service
tion
to redeem and does
hereby call for redemption on
August 1, 1947 all of the outstanding $42,300,000 prin¬
cipal amount of Commonwealth of Pennsylvania Turn¬
pike Revenue 3%% Bonds, dated August 1, 1938, due
August 1, 1968, and numbered 1 to 42,300, inclusive, at
the principal amount thereof and accrued interest to
August 1, 1947, together with a premium of 4 % of the
principal amount thereof.
135
South
Company
To the Holders of
3% Debentures due 1977
On August 1, 1947 there will become and be clue and
payable at the
Preferred and Preference Stocks
Fidelity-Philadelphia Trust Company,
in the City of Philadelphia,
¥
Broad Street,
Pennsylvania, or at the option of the holder, or reg¬
istered owner, at the principal office of Bankers Trust
Company, 16 Wall Street in the Borough of Manhattan,
the City of New York, the principal amount of said
bonds and accrued interest thereon together with the
premium above set forth, and after said date interest on
said bonds shall
cease
to
accrue
and interest coupons
maturing after said date shall become void.
All bonds
required to be presented at either of
redemption and payment.
are
said offices for
Coupon bonds should be accompanied by all coupons
appertaining thereto and maturing subsequent to Au¬
gust 1, 1947. Coupons maturing August 1, 1947 or prior
You
are
hereby notified that the first
coupon
appertaining to the 3%
Debentures due 1977 became payable on July 1, 1947. Holders of
coupon
Debentures, if they have not already done
to present
so, are
requested
their coupons for immediate payment to Cities Service
Company, 60 Wall Street, New York 5, N. Y.
Holders of certificates for Preferred and Preference stocks who
have not yet received the 3% Debentures due 1977, pursuant to the
thereto should be detached and presented
for payment
Fully registered bonds or bonds
registered as to principal only should be accompanied
by assignments or transfer powers duly executed in
in the usual
manner.
blank.
PENNSYLVANIA
provisions of the Plan dated November 20, 1946,
COMMISSION
By JAMES F. TORRANCE, Secretary and Treasurer
Dated: June 26, 1947.
Bank of the
4
OF IMMEDIATE PAYMENT
Holders and
registered owners of said bonds may at
their option surrender the same as aforesaid at any
time prior to August 1, 1947 and obtain immediate pay¬
ment of the principal thereof and the premium of 4%.
Coupons maturing on February 1, 1947 ancTAugust 1,
1947, will also be paid immediately at their face^atnount
if surrendered with said bonds, or they may be
tached and presented for payment in the usual mannerO
amended,
on
and such
are
and in
given, to The Chase National
City of New York, 11 Broad Street, New York 15, N. Y.,
in order to receive the Debentures to which
dends
PRIVILEGE
as
requested to present their certificates, properly endorsed
accordance with instructions heretofore
TURNPIKE
of
on
C. A. San ford, Treasurer
inc.
15, 1947 to holders of record
ATCHISON,
New
$42,300,000.
stockholders
to
July 7, 1947.
12,
Secretary
FUND,
bution of 3 cents per
ized
SANTA
■
on
the close of business
Fund, Inc. has declared Ordi¬
nary
THE
in
share
at
The Board of Directors of Manhattan
business July 24, 1947. Transfer books will re¬
Export-Import Bank re¬
REDEMPTION
at
per
declared, payable July
1947,
record
35^
value Common Stock
Checks will be mailed.
BOND
payable August 15,
1947, to Stockholders of record at the close of
■o»
OF
of
par
has been
MANHATTAN
COMPANY
STOCK
On June 24,1947 a quarterly dividend of seventyfive cents per shaie was declared on the Common
,
NOTICE
close
LOUIS KURZ,
Daily Statement of the U. S. Tresaury, Treasury Bulletin, Survey of Current
Business, reports of the International Bank, Budget for the fiscal year ending June 30,
■
no
29,
Dividend is payable
NOTICES
COMMON
gold paid in by other
(f)
dividend of
the
20c Per Share
character
ports,
1948, etc.
Common Dividend No. 159
A
AMERICAN
12,660
(b)
power
$2,750 million plus
!
COMPANY
PREFERRED STOCK
75c Per Share
New York, June 25, 1947.
525
10,117
approximate
fiscal
surplus materials.
quarterly
1947, to Stockholders of record
DIVIDEND
$3,175 million plus dollars paid in by other
Estimated
following
Congress, will support it finan¬
cially to the full extent which will
74
The authorized lending
1947.
tures in the President's budget for
million made
will
the
ELEVATOR
dividends:
plan
a
books
OTI S
Fla., have de¬
400
23,027
The U. S. capital subscription of
Id)
countries,
clared
ad¬
successful outcome
forthcoming
July,
record
the
Company.
Foremost Dairies,-.
Inc., Jacksonville,
few weeks ago did
be
of
on
Ottumwa, Iowa
Jacksonville, Florida
The Directors of
a
shown,
as
FOREMOST DAIRIES, Inc.
in
a
CAN
Grand Total
countries
Harvard
the
capital
MorreU
stockholders
to
1947,
645(f)
400
1947;
of
12,
per
the
George A. MorreU, Vice Pres. & Treas.
Each
350
1,645
Greek-Turkish aid
•
the
1047,
'
John
on
of
Co. will be paid
&
30,
m
Europe has been given new
now
States, itself, and
72
Thirty-
One-Half
($0.37^2)
share
1947
350
_______
United
of
and
Cents
stock
July
2,700(e)
Post-U. N. R. R. A.
;
of
will be of vital im¬
that the American people, through
U.,S. Government Relief and Special Aid
U.N.R.R.A.
so
dividend
Seven
for the rest of the world
of its present difficulties. We must
all most earnesly trust that there
278
58
for the
"It is difficult to exaggerate the
hope, which
not exist,- of
100
100
To do
success¬
portance, not only for Europe, but
Europe as a whole can be de¬
through the efforts of Great
which
3,266(c)
ful.
vised
dress.
1,700
2,050
9(b)
DIVIDEND NO.
A
be necessary to make it
reconstruction
assist by
financial aid
making that plan effective.;
250
210
the
will
1,730
(a)
900
3,750
Kingdom
plan for
importance
1,250
1,150
Int'l
of
Unutilized
"17770
._
United
able
Through
Available
,""T..V
lar purposes arejmplicit in Sec¬
retary Marshall's speech, I believe
that it is proper to interpret his
words as meaning that if a work¬
JOHN MORRELL & CO.
4)
page
the extent that it is able to do so,
Funds Drawn
.
not these particu¬
or
themselves, the United States, to
Supply of Additional Dollars Under Existing Programs
(In Millions of Dollars)
U. S. Government Lending
»
'
"Whether
Britain and the European nations
Potential
'f
Europe's Economy
(Continued from
lion in the next year and unknown
further credits to be extended by
their operations.
Mr.
Aldrich Reports on
8)
page
47
they
are
entitled. Divi¬
the Preferred and Preference stocks have ceased to
accrue
exchange is necessary to enable the holders of certificates
therefor to obtain the July
1,1947 and subsequent interest payments.
CITIES
:
:
;
SERVICE
COMPANY
By: W. ALTON JONES, President
I.
U.
I
J
THE COMMERCIAL & FINANCIAL CHRONICLE
(48)
i-48
Thursday, July 3, 1947
of their theory, refused to
none
One Would/ the Other Would Not?
Washington
Beliinl-the-Scene Interpretation!
from the Nation's
•
•
t
of
wool
1946 levels.
at
less
not
less
happy-
to
"I
mists
Federal
now
trying
are
bur and get
the
chestnut.
this
facts
much
vide
guess
only safe
and
interesting
Typew
ed to
con¬
of
e r
They
bought
ment.
by
ma¬
on
the
govern¬
Because one lead¬
Why?
ing manufacturer finally agreed
to let Washington have a large
is that it will
snowball to billions.
fixed figure.
with
Interlocked
is
habilitation
our
foreign
re¬
too favorable
commod¬
and
dollars
bilitation
ities.
.
,
,
*
*
*
.
export-im*-
Here's the general
-
mosaic for 1946: exports
$15 billion, imports $7 billion,
leaving a gap of $8 billion. And
here's how foreign nations fi¬
port
$8 billion dollars
worth of American goods which
that
nanced
they acquired in excess of their
to the U. S.;
$3 billion
-\Jy
through.
;
'
t
*
This
an
wool
on
'lars.
Benjamin
and
*
Now look at our estimated 1947
export-import
pattern:
exports
$19 billion, imports
$8 billion,
leaving a gap of $11 billion. How
are foreign debtors financing this
gap? Here's what our economists
say: §2Vz
billion through U. S.
grants, $5 billion through U. S.
credit, $3V2 billion through li¬
quidation of their gold holdings
and
If
you're
eral
It
charts
with
tions,
presents
88
explanatory
for
sells
monthly,
is
$9
these
*
*
economic
an
strain, is to leave
1 a rg e 1 y
squeezed dry of available dol¬
lars and gold. That's why you
foreign
must
countries
billions
expect
dollars
still
—
in
U.
S.
undetermined
in
number—to be exported abroad
in
gifts and credits.
tion
be
when
is
ques¬
will
government
to tell Congress how
ready
billions.
many
*
But
Big
holding company regula¬
tion still looks unlikely. It's mak¬
ing headway in the Senate, may
ease through that body, will shoal
mark this
lection:
the
down for
recol¬
economists
sanest
cosmic levels.
*
has
*
button
a
its pocket after the wallet
On
boxcars
That
June 30
under
was
on
was
OIT placed
controls.
export
just four
days
after
this column reported how
U. S. company
new
the
freight
Congress
Federal
give
may
construction,
to
Russia
in
past three months.
#
sj:
the
can
Representative McGarvey wants
Congress to investigate the Fed¬
eral
Reserve
Chairman
opines that .'.
the
Federal
more
its
Board
Eccles.
.
Mr.
and
its
McGarvey
"The activities of
Reserve
Board
and
particularly the activities of
Chairman
could
well
be
in¬
;
-
.
Y* Y;Y
*
.■■■' v
r-
so
that
sure
of
one
Thomas
CL
Capital Securities
The
Financial
OAKLAND,
G.
would and the other would not have
measures
*
The
calls
V''
*
*
Y:'
;
postage in¬
no
this year.
publicans.
Barnes
Chronicle
CALIF.
has
—
become
Andrew
affiliated
with
Capital Securities Co., 203&
Broadway.
blandly
House will.
in¬
That
off
written
W will
means
law
the
after
maybe
before.
Even
books
Congress
Reserve
knows he can't win
his¬
chance
shortly
congressional probe of the
a
Deal
long
should preface any postal hike,
to get by with these de¬
*
*
laying tactics, are to save a
large hunk of dough for busi¬
joint Senate-House
to
keep an eye on
a
commission
for
developments.
Watch
pointment of that unit.
quits,
general,
mail
order
houses in particular. They can
Chairman
on
one.
labor leaders
management-
this
sabotage
who try
labor charter.
and
President Truman
S.
another seven-year term.
*
Don't write off yet the possibil¬
ity RFC
a
may
secondary
continue to
market
for
serve
GI
as
now, will be 87 before
of his new hitch.
The
gentleman served
in¬
claims
quota
Commission
has
it
system
worked
out
protects
that
a
our
industry from
The
Commission says annual imports
of 7,750,000 units aren't harm¬
ful, maintains the Swiss
are re¬
years
reports
private
lenders
were
dumping the GLobligations. That's
not finis.
women—are
of
Senate
and
House
write
tariff
this
until
clamoring for revival
authority, won't subside
the
adjournment
gavel
bangs.
*
on
for the Commission
asked
*
*
about among
deflationists
re¬
1% on employer and employee.
They had reasoned the sched¬
hike to
talk
M. S.WlEN & Co.
ESTABLISHED
Members
40
N.
Y.
Exchange PL, N. Y. 5
Give big odds if you care to
the imminent passing of Reg¬
help bring prices down, help
curb inflation.
President
It's notable
Truman
would
that
have
"Seaboard Fruit
Co., Inc.
Genera! Products Corp.
HAnover 2-0050
Teletype—NY 1-971
Susquehanna Mills
Firm Trading Markets
Empire Steel Corp.
FOREIGN SECURITIES
>
-
All Issues
,
■'
on
Request
.
CARL MARKS & P.O. INC.
FOREIGN
budgetary
SECURITIES
SPECIALISTS
tossed
congressional appropriators that they should be har¬
nessed .even, as
other„• Federal
HA. 2-8780
Teletype N. Y. 1-1397
*Prospectus
is
1919
Security Dealers Ass'n
Zy2% next Jan. I
*
without
but
New Issues
*
report, will
bub by suggestions they be sub¬
jected to budgetary control. They
restrictions,
*
Government
*
Federal bank supervisory agen¬
cies have been thrown into hub¬
function
He's 80
venerable
gret the Social Security old age
assistance tax is to be frozen at
uled
Domestic & Foreign
Securities
would help absorb buying pow¬
*
have something to say about it
when the reciprocal trade law
for re-enactment next
Rails
expiration
committees
laws
Reorganization
:
*
er,
quota, shipped in
million units in 1945,
7.4 million in 1946, and 1,644,000
in the first quarter of 1947. The
Potent House men—and
Chronicle
Congress 20
placency.
mortgages.
Congress last
deprived RFC of the right
to buy such paper after
hearing
specting this
7.7
in
Financial
before retiring to FTC com¬
sured
Tariff
not
He has just reappointed
week
U.
seems
to mind.
Commissioner William A. Ayers to
*
Old
a hurry
Commission,
at the Federal Trade
The
ANGELES, CALIF.—Ma¬
loney & Meyer, Inc., 650 South
Spring Street, have added Martin
E. McGarry to their staff.
Eccles
this
prevailing rate.
*
Special to
LOS
Federal
still mail your catalogue at the
ap¬
Maloney & Meyer Add
Theynever do.things in
in
ness
The per¬
sonnel will be important, will be
in a position to spotlight those
now
New
a
sist
Taft-Hartley labor law
new
for
only
into
W
There's
be
Thank the Re¬
They
tory.
Post Office Department's deficit
during the
ended
*
indignant
Republican
Hoit,
of
Joins
*
President be
■
Pennsylvania's
'..«Y, *
the
branch
year.
Don't be hopeful—or
—but
S.
Hoit, Rose & Troster has
changed to Hoit, Rose &
Company. Offices of the firm are
at 74
Trinity Place, New York
City.
name
are
comes up
*
con¬
the Senate ma> OK its continu¬
ation.
There's no chance
the
war,
one
had shipped 3,600
cars
on
'
nod to
the
Bank
Reserve
which
con¬
gressional snoopers learned
*
sion.
chance
good
a,
destructive Swiss imports.
*
■
finally sewed
lifted.
there's
watch and clock
And speaking of exports, the
Office
of
International
Trade
Howard
Brown and Eugene L. G. Grabenstatter
announce
that
the firm
traveled
ulation
'Y';"
in
government have no hope—abso¬
lutely no hope — of long main¬
taining U. S. exports at current
of
office
v*:'
been
*
•
*
There's to be
to
*
countries
agencies. Such reform won't get
beyond discussion stage this ses¬
down in the House.
commando
*
York
:
Bank
But
Liquidation of that $31/£ bil¬
other
the untoward effects described
by him?
#
New
Hoif, Rose & Company
Special to
How
yearly.
$
lion in dollars and gold is to be
and
we
Y Y
■/
of
nota¬
Street, New York. Joseph
formerly resident part¬
the
Firm Name Now Is
me."—President Truman.
pages
for¬
the
Faroll & Co.
general principles and policy
original Senate bill would be acceptable to
of the
Bank
on
crease
*
*
which
"A bill based
titled "Fed¬
Charts
Reserve
Klein
was
in
ner
you'll
Board's
Reserve
newest publication
Klein
sequences.
chartist
a
Federal
Joseph
announce
The firm will maintain offices at
67 Wall
road to economic isolationism
same
*
want
of
Klein
co-partnership of
Joseph Klein & Co., to transact a
general
brokerage
business
in
cotton,
commodities
and
grain.
■
after the First World War with such disastrous
dollars.
S.
U.
New
to
na¬
our
that
on
down
%
*
*
Klein,
Morris
mation
leadership in world affairs. It
interpreted around the world as a first
would be
*
Joseph Klein & Go.
for the
purpose
blow to
a
step
York.
ness."
4
of
Bank
Reserve
Federal
*
*
Formed in NYG
and of
be
dealing with
holdings, income,
asset
40 to 65 cents.
of reducing trade barriers
drafting a charter for an international trade
organization in an effort to restore the world to eco¬
nomic peace would be a
tragic mistake. .It would
are
Credit, Money, Rates, and Busi¬
*
*
#
,YYY
con¬
done to
was
is taking the lead¬
ing part in a United Nations Conference at Geneva
*
of
tion's minimum hourly wage from
providing for additional
importation of wool at the very
the
to
the
of
Congress is set to hike the
moment when this
government
called
through U. S. grants, $3 billion
billion
through their gold holdings and
liquidation of their U. S. dol-
*
barriers
.
Bulle¬
two
study
•„
.
Reserve
Board's
*
amendment intend¬
law
a
..
and income tendencies.
passed by the House, the
'":.v
*
"The enactment of
about to get a
break from Congress. The House
has passed—so will the Senate—
legislation empowering the Sec¬
retary of Treasury to fix daily an
exchange rate in assessing duties
on imports that would be between
the highest
and lowest current
rate as certified that day by the
Importers
sales
through U. S. credits, $2
Y'Y-'-Y"
Demolition of the
ceilings had been OK'd by the
Senate, had substantial House
backing until that deal went
trade balance of
exports oyer im¬
ports.- That has to be—will be—
considered when we divvy reha¬
the
«
part
carry
-
•
* '*
*
finances,
liquid
.
at
standards
of
number
mood to lower
,
Federal
will
sumer
these
to
provide a
President Truman
means of
increasing the domestic
market price of wool to
approxi¬
mately the support price, thus shifting the cost
of the support from the
Treasury to the consumers
of wool products. The
prices of these products are
already high.
>
v
v.
manufacturers
,
ceilings
price
chines
objection
this
Chair¬
,
increase the tariff
fees.
have lost their bid for elimina¬
tion
no
bill carried
*
*
i t
r
July
tin
through the imposition of import
*
the total and your
wager
am
inquiry would pro¬
an
some
I
Congress.
by
clusive results."
reha¬
receive
(3) what these add up to.
won't
that
sure
(2)
what and
each nation needs;
have
Reserve
no
•
..
Reserve
"As
vestigated
aid;
bilitation
how
away
pare
at the meat of
They're sifting
shall
and
quire
to
econo¬
which nations re¬
(1)
on
^
*
*
*
Right
,.
"
"/
•
.
Commodity Credit Corporation
sell wool held
by it at market
provisions.
con¬
hurdle, is rather disposed to
raise it.
prices.
of foreign gifts and credits next year.
way
Federal
Eccles is in
this
than
It further authorized
the
go-lucky guesses. Yours is as sound as mine. Neither is shored up
by knowledge.
Plain fact is that nobody—inside or outside govern¬
ment—yet has any faint idea of what we're to be called upon in the
■„
*
Congress rules to the
And Congress won't
man
.
foreign
Pay no heed to those multi-billion dollar estimates of
rehabilitation needs being bandied about.
Actually, they're
*
trary.
session.
support prices to domestic pro¬
ducers
•
You'll continue to operate on a
50% cash margin requirement un¬
originally passed by the Senate, the bill (the
proposed Wool Act of 1947) directed the Commodity
Credit Corporation to continue until the end of 1948
to
their fight to Congress.
*
"As
And You
Capital
carry
50 Broad Street
Hill, Thompson & Co., Inc.
Markets
New York 4, N. Y.
.AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
120
and Situations
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
n
Vol.
166
Number 4608
THE COMMERCIAL &
FINANCIAL CHRONICLE
Pictorial Insert A
Bond Club of Cleveland
(Clockwise
around
the
table
starting at the lower left):
Herman
Sheedy, McDonald & Co.; Orin Koeser, Blyth & Co.; Ray Lamb, Merrill Lynch, Pierce,
Beane; Lester Powers, Dominick & Dominick, New York; Walter Carleton, Fahey, Clark & Co., President of the Bond Club of Cleveland; J. Emerson Thors,
Kuhn, Loeb & Co., New York; Eldon Keller, McDonald & Co.; Claude Turben, Merrill, Turben & Co.
'
Fenner &
,
{Clockwise around the table starting at the lower left):
Myron Ratcliffe, Lehman
Bros., New York; Joseph Ludin, Dillon, Read & Co.; Frank Reid, Maynard H. Murch
% Co.; Earl K. Bassett, W. E. Hutton & Co.; H. L. Bogert, Jr., Eastman, Dillon & Co.,
New York; Elmer Dieckman, Glore, Forgan & Co., New York; James Lee, Lee Higginson Corp., New York; W. C. Handyside, Maynard H. Murch & Co.
around the table starting at the lower left):
Nelson Ginther,
Co.; C. J. Odenweller, Securities & Exchange Commission; John Hay,
Drexel & Co.; Rufus Ullman, Ullman & Co., Inc.
(Clockwise
J. Mericka &
the
table
starting
at
the
lower
left):
Douglas
Hansel,
Co., New York; Douglas Handyside, H. L. Emerson & Co.; Brainard
Whitbeck, First Boston Corp., New York; David Field, First Boston Corp.; Clarence
Davis, First Cleveland Corp.; George Murnane, Jr., Lazard Freres & Co., New York;
John Clark, Fahey, Clark & Co.; Paul Eakin, Hornblower & Weeks; Scott Cluett,
Harriman Ripley & Co., New York; L. J. Fahey, Fahey, Clark & Co.
(Clockwise
Wertheim
around
&
Ginther & Co.; Roderick A. Gillis, Wood, Gillis & Co.; Edward E. Parsons,
Merrill, Turben & Co.; Peter Hallaran, Merrill, Turben & Co.; James
Jr., Wm.
Knowles,
Pictorial Insert B
THE COMMERCIAL & FINANCIAL CHRONICLE
Silver Anniversary
Jay L. Quigley, Quigley & Co., Inc.; E. W. McNelly, Union Bank of Commerce:
Doerge, Wm. J. Mericka & Co.; William S. Gray, Wm. J. Mericka & Co.; Frederick
a^pund the table starting at the lower left):
Fred
H^nn
RemiSdlCo' c'h^
C.
F.
Celebration
R. C. Herlihy, Wm. J. Mericka & Co.; Corwin L. Liston, Prescott &
Co.; Carl H.
M. Asbeck, Wm. J. Mericka & Co.
(Left
to
right):
Edward
Glassmever
Jr
Blvth
&
Co'
A
M
Newton
Burge &
Reynolds & Co., Chas. Hazekwood, E.
Jay L Quigley, Quigley
Merrill, Turben & Co.
Byron Mitchell,
Thursday, July 3, 1947
&
Hanrlpv
anaD;sua& K
Miller r Co.;
Miller & Co.; Robert Shepard, Hawley, Shepard & Co.'; F. Dewey Everett
Baxter, Hayden,
HnR *}rSe'sal' r9e
ltessuRWeeks, New rK&
Lea,
bloioer & ;sua York; Rudford Wilson, Curtiss, House & Co.; Frank
H Rollins & Sons, Inc., New
Co., Inc.; William Clarl
York; Lawrence.
(Left
Halsey, Stuart & Co.; Harry Kraus, Ball, Burge & Kraus
to right): Harry Kraus,
Ball, Burge & Kraus'
Herman Joseph, Skall,
Joseph, Miller & Co.
(Left to
right):
Robert Blyth,
Galen Miller,
Rorn-
Mead,
Hayden, Miller & Co.;
National City Bank of Cleveland
1
Vol.
Pictorial Insert C
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4608
166
Bond Club of Toledo
Lud
Strader, Scott, Horner & Mason, Lynchburg, Va.; Franklin Schroeder, Braun,
Bosworth
Franklin
Warren
&
Co., Toledo; Larry A. Higgins, Hulburd, Warren & Chandler, Chicago
Schroeder,
D.
Braun,
Bosworth & Co., Toledo;
Williams, Ryan, Sutherland & Co.,
Toledo
Burt
Public School Employees Retirement System,
McDowell, Ohio Municipal Advisory Council, Cleveland; H.
First Cleveland Corporation, Cleveland
Ward
Ashman,
T.
Ryan,
Burt T. Ryan,
Carl
Doerge,
Wm. J. Mericka & Co., Cleveland; John
Jr., Ryan, Sutherland & Co., Toledo;
Sr., Ryan Sutherland & Co., Toledo
Columbus; W. A.
B. Mahon, Jr.,
P. Chapla, Paine, Webber,
Curtis, Cleveland; Jack Kuenhold, Jr., Paine, Webber, Jackson
Cleveland; Wm. G. Sutherland, Ryan, Sutherland & Co., Toledo; Bob
Nelson, Browning & Co., Cleveland
Jackson &
Celian H. Rorick,
Jr., Ohio Citizens Trust Co.;
Rohr, Toledo Trust Co., Toledo
Willard I. Webb,
The Spitzer-Rorick
The
& Curtis,
Davider,
Trust & Savings Bank, Toledo;
Spitzer-Rorick Trust & Savings Bank,
John H.
Marvin H. Rorick,
Toledo
THE COMMERCIAL 8c FINANCIAL CHRONICLE
Pictorial Insert D
Thursday, July 3, 1947
Annual Summer Outing
.
tt
tt
r>„„„iAOV>4.
cn„
Cincinnati; H. J. Hoerniann TnePrwMntaw^
ings Bank & Trust Co., Cincinnati; Carl Mittendorf, The Weil, Roth & Irving Co.,
Cincinnati; Bob Isphording, Van Lahr, Doll & Isphordmg, Cincinnati
/
George Kountz, J» A. White & Co.,
Hattier, Jr., White, Hattier & Sanford, New Orleans; J. W. Kingsbury, Kingsbury & Alvis, New Orleans; C. W. Waterfield, Cumberland Securities Corp., Nash¬
ville; Ed. Horner, Scott, Horner & Mason, Lynchburg
Gilbert
Carl
Bargmann, Braun, Bosworth & Co., Toledo; Jay L. Quigley, Quigley & Co.,
Cleveland; Fred Schneider, Public Employees Retirement System, Columbus
Jerome Kahn, Breed &
Harrison, Cincinnati; George Blauevelt, National City Bank,
Cleveland; Wm. H. Clark, Merrill, Turben & Co., Cleveland; John P. Chapla, Paine,
Webber, Jackson & Curtis, Cleveland; Bill Watterson, Fahey, Clark & Co., Cleveland
George Martin, Martin, Burns & Corbett, Chicago; Charles Frye, Chicago Journal
of Commerce, Chicago; Dudley C. Smith, Investment Bankers Ass'n., Chicago; Nate
sharp^ R
Clarence
Davis,
First
Cleveland
s
Dickson & c
Corporation,
Chicag0
Cleveland;
W.
C.
Lyklema,
A.
C.
Allyn & Co., Chicago; Emil Legros, First Cleveland Corporation, Cleveland
Don
Dresser, The Toledo Trust Co., Toledo; Wade Eley, The Toledo Trust Co., Toledc
Norman Fields, Braun, Bosworth & Co., Toledo
Ray Olson, Stranahan, Harris & Co., Toledo; John A. Straley, Hugh M. Long & Co.
New York; Carroll Little, C. H. Little & Co., Jackson, Tenn.; Morton
Cayne,t
Cayne Robbins & Co., Cleveland
^
Vol.
166
Number 4608
THE COMMERCIAL & FINANCIAL CHRONICLE
Pictorial Insert E
Held June 20th at Inverness Club
W. C.
Fred
Draper, The Toledo Trust Co., Toledo; Wade Eley, The Toledo Trust Co., Toledo;
S. J. Balog, The Toledo Trust Co., Toledo; Don Dresser,
The Toledo Trust Co., Toledo
Schultz, M. B. Vick &
Co., Chicago; Ed Legros, First Cleveland Corporation,
Cleveland; Blair A. Phillips, Jr., The White-Phillips Co., Davenport, Iowa; Tom Ray,
Mercantile-Commerce
Bank
&
Trust
Co., St. Louis; Gene Frantz,
Weeden & Co., Chicago
Charles F. Conners, Pohl
& Co., Cincinnati; Charles Bechtel, Watling & Lerchen & Co.,
Detroit; Wm. G. Sutherland, Ryan, Sutherland & Co., Toledo; Bob Isphording,
Van Lahr, Doll & Isphording, Cincinnati
'
f
*•
Moore &
Bank, Chicago; William Moore, McDonaldCo., Detroit; Franklin Schroeder, Braun, Bosworth & Co., Toledo;
Ray Condon, B. J. Van Ingen & Co., Chicago
Clute, Straus & Blosser, Detroit; E. P. Wolf ran, Bell & Beckwith, Toledo;
Odenweller, Jr., U. S. Securities & Exchange Commission, Cleveland; Louis J.
Reimers, Stranahan, Harris & Co., Toledo; Ralph S. Longstaff,
Rogers & Tracy, Chicago
Minton M.
C. J.
Robert
J.
Mikesell, Stranahan, Harris & Co., Toledo; E. M. Bancroft,
Co., Toledo; Durwood DuBois, Stranahan, Harris & Co.,
George H. Kountz, J. A. White & Co., Cincinnati
Harris &
Stranahan,
Toledo;
•
George Kountz, J. A. White & Co., Cincinnati; Fred Asbeck, Wm. J. Mericka
Cleveland; Ray Olson, Stranahan, Harris & Co., Chicago
W. S. Morrison, Harris Trust & Savings
& Co.,
Warren D.
Williams, Ryan, Sutherland & Co., Toledo; William E.
National Bank, Toledo; Ollie Goshia, Goshia & Co.,
Watson, Commerce
Toledo
THE COMMERCIAL & FINANCIAL CHRONICLE
Pictorial Insert F
Bond Club of New
Hoehn, Gregory & Son, Inc., New York City; Benjamin Fairbanks, Pres.
Savings Bank, Newark; W. A. Reiter, Mutual Benefit Life Insurance Co.;
Sovereo, guest; Tom Loughlin, U. S. Savings Bank, Newark; Larry Souville,
Spencer Trask & Co., New York
Herbert
of
S.
U.
R.
S.
John
Thursday, July 3, 1947
Jersey
E.
Manning, Manning, Shanley & Co., Newark, N. J., Collector of Internal
for the State of New Jersey; Frederick Sautler, Boland, Saffin & Co.,
York City; Kenneth Spear, Julius A.
Rivpel, Inc., Newark, N. J.; J. A. Ltttv,
Coffin & Burr, Inc., New York City
Revenue
New
-
Welzmiller, C. F. Childs & Co., New York; Fred Brown, White, Weld & Co.,
James B. Kirk, Harris, Upham & Co., New York; Irwin Ross, South
Shore Bank of Staten Island
Carl Preim, R. W. Pressprich & Co., New York City; Harry P. Schaub, H. P. Schaub,
c,'> Newark; Charles Thomas, Keane, Taylor & Co., New York City; H. Prescott
Wells> Cutwater & Wells, Jersey City; Bruce Campbell, guest
Ed. Kezer, B. J. "Van Ingen & Co., New York; Bill
Rommel, J. S. Rippel, Inc.,
Newark; Ed. McLaughlin, Paine, Webber, Jackson & Curtis, New York; Jim tylusson, B. J. Van Ingen & Co., New York (standing); Norton Rogers, Rogers Gordon
Jim Currie,. Troster, Currie & Summers, New York City; Ed Purcell, Commercial
Paul
New
York;
&
Trust Co. of New Jersey, Newark; Harry Zimmer, Commercial Trust Co. of New
' -V Jersey, Newark; Chick Spring, Outwater & Wells, Jersey City, N. J.
Co., New York
William
E. J.
Turner, Pitney, Bowes & Co., Inc., Newark, N. J.; Tom Darby, Francis I. du
Pont & Co., Newark, N. J.; Jack
Cullen, R. W. Pressprich & Co. New York City
Boland, Boland, Saffin & Co., New York City; Cortlandt Parker, R. W.;
Pressprich & Co., New York City; Edward Fishwick, Mutual Benefit Life Insurance
Co.; J. Ashley Brown, Newark, guest; W. H. Campbell, Campbell & Co., Newark
Vol.166
Number 4608
THE COMMERCIAL & FINANCIAL CHRONICLE
,
Pictorial Insert G
Holds Annual Summer Party
Donald K.
Mackenzie, Bank of America, New York City; Richard D. Nelson/ Equit¬
Corp., New York City; J. Kirk Hopper, Equitable Securiteis Corp.,
New York City
able Securities
G. B.
Bank
Underwood, Irvington Trust Co., Irvington, N. J.; Thomas G. Kenyon, Carteret
& Trust Co., Carteret, N. J.; Frank Allen, Maplewood Bank & Trust Co.,
Maplewood, N. J.; Banks E. Moyer, Washington, N. J.
Chester
Boston
Bardsley, Salomon Bros. & Hutzler, New York City; Jim Duffy, First
Corp., New York City; Ted Von Glahn, Salomon Bros. & Hutzler, New York
City; Paul J. Mahoney, Paul J. Mahoney, Inc., New York City
Charles E. Reed, Keane, Taylor &
& Co., New York; Robert M. Pyle,
Co., New York City; W. M. Farrar, Smith, Frank
Hornblower & Weeks, New York; Robert W. Lane,
MacBride, Miller & Co., Newark, N. J.
0
H.
F.
Graham, Stone & Webster Securities Corp., New York; Walter Schumann,
Dolphiii & Co., Philadelphia; Frank Cole, F. R. Cole & Co., Newark
Arthur
&
Robinson, Fidelity Union Trust Co., Newark; Robert Swift, Hemphill, Noyes
Co., New York;
•\
Hal
Murphy,
Financial
J. W.
Harry D. Miller, NuQent & Igoe,
Jr., Nugent & Igoe, East Orange, N. J.
Chronicle, New Ybrk;
East Orange, N. J.; John E. Parker,
Press, E. W. Tallau, F. E. Quimby, and W. L. Maude, all of Howard Savings
Institution, Newark
*
Ed
Weis,
•
•••
guest;
•
,
W. P.
•
'
Wilson, W. C. Langley & Co., New York City
.
.
"
.
>
'
Joseph Cantlie, Campbell & Co.; Newark; Bill Roos, MacBride,
Miller & Co., Newark; Don Collins, guest
Cyrus Currier, Mueller & Currier, Newark; Julius A. Rippel, J. A.
Newark; J. Ashley Brown, guest
•
'
Rippel, Inc.,
Pictorial. Insert H
THE COMMERCIAL & FINANCIAL CHRONICLE
Pronounced Huge
Davis
Kales, Commerce Union Bank,
City; Roger Phelps, Camp¬
bell, Phelps & Co., New York City;
Dick Rand, Rand & Co., New York Ciiy
New York
Foy Porter, Estabrook & Co., New York
City; John E. Manning, Manning, Shanley & Co., Newark; R. H. Monaghan,
Newark, N, J.
Russ Dotts, Hess
Fixter,
Blizzard & Co., Philadelphia; Walter
Buckley Bros., Philadelphia; Halsey Brewster,
Ewing & Co., New York City
J. D.
Herbert I. Shaw, Vance, Sanders & Co.,
New
•
Thursday, July 3, 1947
Success
York
City; Harold Smith, Collin,
Norton & Co., New York City; O. D.
Griffin, Lo'd, Abbott & Co., New York
City
Topping, Braun, Bosworth & Co., New York City;
Kales, Commerce Union Bank, New York City;
Bivins, Chase National Bank of New York; Jack
Clark, Chase National Bank of New York
Davis
R. A.
■
A1
Sanders, Ira Haupt & Co., New York
City; John Ryan, Ryan & Co., Newark,
N. J.
Roald Morton, The Blue List, New York City;
Waldmann, Keane, Taylor & Co., New York City;
M. Cobden, Keane, Taylor & Co., New York City;
low Van Deventer, Van Deventer Bros., Newark,
C. J.
E. A.
Lud¬
N. J.
•n
Harry Faath, Tripp & Co., New York City; Foy Porter
Estabrook & Co., New York
City; Henry Hegel Fed¬
eral Trust Co. of
Newark, N. J.; A1 Rice, Laurence M.
Marks & Co., New York City
Walter F.
J. E.
"
ard
Coss, B. J. Van Ingen & Co., New York City;
Egner, Clark, Dodge & Co., Newark, N. J.; HowDunning, C. P. Dunning & Co., Newark, N. J. *
John
Ed.
Schermerhorn, Milliken & Pell, Newark, N. J.;
Hinckley, J. S. Rippel & Co., Newark, N. J.; Ed
Granbery, Marache & Lord, East Orange,
Parmelee,
N. J.
@FedFRASER