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Final Edition
THURSD A Y
In 2 Sections
-
Section 2
.(
T
K
Re*. U. 6. Pat. Office
Volume
Number 4094
156
New
York, N. Y., Thursday, July 30, 1942
Special Tax Privileges Urged
By HorgeiilEtau Before Senate Finance Comm.
With the opening
of the hearings
July 23 by the Senate Fi¬
by the House on July 20,
Secretary of the Treasury Morgenthau conceded that "it is true that
the bill would produce by far the greatest revenues in our history,"
yet he said it "would provide only $6.3 billion additional revenue
in place of the $8.7 billion we recommended in the spring.
It would
fail by about $2.4 billion to reach
f
Committee
that
which
the
is
even
from
State
and
pointed
oil
and
an
war
-
Objections
what
to
all-out
finance
he
termed
income.
war
"•
-
viz.:
"tax
•;
(Continued
on
Whole
Insurance
Praiseworthy
given
this
on
'.
■ •
^
Page
Field
Doing
a
-
Job
War
370
Financial
Prom
Situation
369
................
Washington
Ahead
of
the
News
369
Moody's Bond Prices and Yields..,.
Items
Banks
About
State
General
and
Trust
379
Cos. 384
Trade
of
Review
Fertilizer
Price
Index..............
..
Publication
Federal
380
—
.....
...
June
Reserve
Business
..
;;j'
Miscellaneous
378)
Savings & Loan System 10th Anni382
Occupations in Com¬
Praises
U.
S.
Industries....
...
Morale..........
381
381
Scrap Rubber Collections
383
Ends Export Cotton Sales............. 383
Offers
Inflation
Plan
Control
Pro¬
......................
373
New Labor Federation.........
Study Delivery of Supplies to China 373
Stoppages... 373
Wages
Raised
to
Meet
Increased
Living Cost
373
By CARLISLE BARGERON
do
with
•think,
the
They should be uplifting to
purpose.
a
These stories,
our
institutions of
we
thousands
On U. S.
decline
our
came
when every
Fate
American father's ambition was to
his
send
to
son
college, and did.
Thereupon, we developed, a great
race of thinkers, instead of work¬
and thinking
became - our
greatest industry, and this indus¬
try having become overloaded, the
Government finally moved in to
ers,
give opportunity and outlet to it.
The Government having
done
.this,
lot
a
veloped.
for
uge
of
funny
things
Thinking became
de¬
ref¬
a
shenanigans
many
and
but
the business of
•thinking, it seems, turned out to
•be an essential war industry, and
: saved a lot of young men from
nonsense,
the
people,
to keep him and
prevent inflation. When you put
a proposition
up to a people like
let the Army
can
We
are
have Ginsburg, what
people be expected to do?
a
against inflation and we
for the Army. There is a test¬
Yet there is
lesson
a
us.:,It shows how
for all of
tenuous
is
our;
bulwark
S.
son's
right hand young man, Mr;
Ginsburg.: At the age, of 30r just
•ripe to do things to Hitler and
worst
.
course, Henderson has
that Ginsburg is indis-
and
one
of
them
say, oh hell; let the
You would think that
known
how
to
for that work—would know what
is
a
matter such
(Continued
on
as
this.
page
378)
We
374
374
50%;...........
Up
Standard................
Is Closer
at
Hand..
Y.
ABA Bulletin on War
ance
Hull
'■
\
'
^
*
1
of
U. S.
.......
space
we are
a
con*
ditions, is usually contained in this section of the "Chronicle."
this matter to the attention of
are
mindful of
the
value
of
our
the
our
readers,
we
pledge to make every effort to increase
by reporting, without delay,
"Chronicle'-'
all of the information essential to
A
thorough knowledge of
the manifold changes in tax and other legislative matters
originating in Washington, together with the activities of
the many Government agencies whose functions are of in¬
a
League of Nations Man
was
Wilsonian democrat
a
and
such
as
of the League of Nations idea. It is,
therefore, not strange that he should now again as in the
past give strong support to the Rooseveltian version of such
schemes and devote a good deal of his time to
telling the
American people that our failure to
support Wilson's ideas
on this
subject, and Wilson's plans, is in substantial degree
responsible for the fact that the world today is embroiled
in another
even
that
From such
this
which
an
contention
after
which in horror and destruction far
surpasses
came to an end in the autumn of 1918.
war
one
argument flows quite naturally the further
that
should
we
has
war
been
"make
not
the
All this
won.
mistake"
same
is, of
well
ground. All those who have long agreed with this
line of reasoning will doubtless applaud
vigorously. Those
who despite all the tumult and the
shouting have managed
course,
worked
a more realistic
conception of world politics will,
certainly to be hoped, not be unduly influenced by the
lofty but rather impractical idealism of the greatly respected
Secretary of State.
\
*
it is
It is when the Secretary goes beyond all this, far beyond
anything Woodrow Wilson, who was in his day regarded as
an almost
"hopeless" idealist, ever dreamed of, that he, likethe President, Mr. Willkie and many others, seems to become
confused and certainly does become
deeply disturbing. No
V;' !
v!(Continued
on
page
"
371)
374
377
Makes
New
377
High 377
Uruguay.... 377
Stabilization in New
England Plants .,;..375
Destroyed Them?
Equally plain is the need far making national currencies
once
of
freely exchangeable for each other
more
exchange; for
that
materials
be
can
of
system
a
stable rates
at
financial relations
produced and
moving them where there
375
for
Imports..
375
ment
Kuilding Permits Down.......
ways
so
devised
be found of
may
markets created by human need;
are
375
Coordinator....:.....
Fishery
June
Now
What
377
Increased
Coffee
machinery through which
the
of
economic
Home
Building Restricted
Morgenthau
Discusses
Pending
world's
capital may—for the develop-
1
•
-
for
the
stabilization
of
equitable terms from financially
on
stronger to financially weaker
Cordell Hull.
and
resources
activity—move
371
Tax
Measure Before Senate Committee 369
countries.-—Secretary of State
\
Higher Wages Feature 1941 National
,
Income...i.i_.. ......V.
Service
Men
lege.......
Rubber
Granted
To be
.v...
380
Agency Voted......
Supply
Builders .Ask
Materials
on
ABA
More
Allocation. ,-376
Listed
......
Committee
.
Tax
existed.
them?
•
376
of
State
"...
384
Industry Strikes Higher in June 384
Praises
Hoover
of
Illinois Industrial
"Little Steel"
FBI........,
1942
• •
.
/,»!
;
.
/;
Federal
He continues:
There
and
Tax
Collections
for
.
once
destroyed
•
'•••/
■
may
be
need for
some
international agreements
These
to
do
are
as
only
some
['.
special trade
to
arrangement
handle difficult surplus
areas.
of the things that nations
There
are
and experience
bound to be
many
others.
can
attempt
instruct their
But the
new
policies should always be guided by cautious and sound judg¬
372
Reserve Board Amends Credit Regu¬
lation
370
discussion
continuous
judgment.
Set
372
Bureau
■
problems and to meet situations in special
Employment Down 384
Pay on Finnish 6s....../,...
Eudget
that all this
aware
understands, what
*
Wage Rate Decision/. 372
Record
Urges
^
he
384
Automobile Workers in Trade Unions 372
To
v..
that
Hear¬
384
Survey
•
certain
376
Bill
....
Completes
he
Is
Cor¬
Banks
War
the Secretary is well
sure,
376
„.....,
Reports
380
Voting'Privi-■'
ment
create
lest
new
we
make
conflicts.
new
mistakes
in
place of old
ones
and
\
Inquiry..,.., 370
creasing importance to the conduct of business in the present
Vote
Shore Facilities Funds..
370
emergency.
Prices Adjusted on Dairy Products..
379
was
ardent supporter
Wage
ings
limitations, to divert to Section 1
to the
or
These passages the American citizen may
without great pause.
Mr. Hull
.
considerable amount of material which, under ordinary
In bringing
well pass over
377
..
Grants Credit to
Orders
.
Victory Objectives..
June-Lend-Lease
Senate
paramount importance to business and industry,
obliged, owing to
pleasing to the Government of the United States
Damage Insur¬
........
Discusses
.
Money in Circulation..,...;...
f
here and there
were
plainly directed at governments and peoples
British authorities.
Business
...
porations
Due to the constantly expanding volume of current news
devoted to just another
was
enemies, and there
whose attitude and actions of late have not been in the least
377
N.
to
Solution
SEC
Notice To Our Readers
sentences rather
374
Problems
__
to do in
Dividends.
quirements
Seeks.
out
everything, the crops
we should raise, how we should
work, what pay we should receive
,
former
come.
work
.pensable. The way Leon has put
it, there are worse things to dread
than Hitler and Hirohito, mostly
"the
to
leaders who have
Hirohito, of
-insisted
is
nation
our
NYSE Revises Minimum Capital Re¬
put to us in this wise, our incli-:
-
-
374
Announced.;.
Casualties
Inflation
Ickes
;
Banks Reduce
Gold
to
Says
Permits
•:
-
Secretary's time
Says Great Britain Will Not Return
Sometimes when the problems are
,
374
Agricultural Meeting
....................
Canning
.responsible.
We have in mind Leon Hender¬
374
War
Home
"thinking was,-in the first place,
*
374
Canadian
U.
/
.v........
Praised
against inflation.
Just
Ginsburg, it seems. Let the Armytake him and We get inflation.)
•going up against guns, for which
373
Businesses- Deter-
......
Spurs Search for Iron, Steel Scrap.
are
ing of people's mettle here, the
question of whether a distraught
and worried people are capable of
making the right decision.
<
Soon
Inter-American
have inflation
or;
we
the
to retain
373
Comptroller of USO...,....
Named
are
that—should
War
;....
Small
of
mined
inflation.
Well, as we understand!
it, - the - question is whether thei
Army is to have Ginsburg or we,;
Long
Pledge
Chamber's Insurance Com¬
mittee
ably likely, that history will show^
that
of
............v.373
Chicago Home Borrowings Down.... 373
We don't know, but it is reason-:
higher learning.
Delivery
Cotton
Industry-Labor Leaders
Unlry
and thousands of thinkers that are being turned out each year from
our
Resti lets
Staple
Washington "these days; our report this week has to
"coming forward" of Joe Eastman.
serve
WPB
about the only ones that can be
are
of
373
gram
Warns Unions on Work
stories
tion
an
....
"Chronicle."
AFL
success
on
Thursday evening last spoke at
length by radio to the American people, and, it is doubtless
hoped, to the remainder of the world. A considerable por¬
*288
In¬
dexes
.376, 381
English Gold and Silver Markets... 381
*Reported
in
Section" 2,
July
23
AHEAD OF THE NEWS
I
extraordinary "build-up" that Secretary
371
.......
Weekly Coal and Coke Output
382
Weekly Steel Review.«.
379
Moody's Daily Commodity Index.. 379
Weekly Electric Power Output...... 380
Weekly Crude Oil Production.....382
Non-Perrous Metals Market.....".., 380
Copper Statistics Not Available for
FROM WASHINGTON
as
an
.............
munications
Inasmuch
after
was
State Cordell Hull
excoriation of
Commodity Prices—Domestic Index 382
Oarloadings .......
383
Weekly Engineering Construction.. 381
Paperboard Industry Statistics.383
Weekly Lumber Movement......... 382
veisary
Lists Essential
written out'of
It
of
Regular Features
.'•/
page
notice
.
■
of in¬
exemption
the
.;
'
"The first of these, especially;
"special privileges" in the "House
favored groups are the recipients:
were voiced by.Mr. Morgen¬
<
reports
Editorials
bill,
thau
in
.
_
gas
program.!
appropriations, authori¬
does
this by leaving certain
sations and requests for this and it
privileged
groups
free
succeeding fiscal years have risen highly
from tax on large portions of their:
.by $75 billion."
total
page,,
Administration's
"the
other
appear
explained
as
their gross receipts by owners of
wells; and the privi-;
lege of filing separate income tax
revenue
returns by married couples in
program was
presented
so-;
last Spring as a minimum."
He called community property States.
went on to say:
From
Secretary
Morgenthau's
"On March 3, when I first came statement we quote:
before the Ways and Means Com¬
Special Privileges
mittee, our total contemplated ex¬
"The Revenue Bill as it stands:
penditures for the fiscal year 1943
violates
the
basic
principle of;
were $63 billion.
Since then they
have risen by $14 billion, and the equity which is so important to
that
Note—Various
items, not covered in this in<
in Section 1 of this issue,
news
dex,
municipal
securities"; the provision permit¬
ting the deduction of 27J/2% of
afford to
can
provide today." •
Secretary Morgenthau
out
and
on
come
emphatically
more
least we
very
spring,'
last
of
minimum
Editor's
the huge tax bill passed
on
Copy
a
GENERAL CONTENTS
End Of
nance
Price 60 Cents
Urge
Naval
Registration Under
Credit
Rules
There is
Consumer
379
not
much in these sentences to resolve one's doubts.
THE
370
COMMERCIAL. & FINANCIAL CHRONICLE
Amends!-
Reserve Board
'w
..
,n
Whole Insurance Field? Doing
urgent
of' the
In: recognition
t
A
necessity for the conservation of
fuel because of the current diffi¬
:;
has
efforts
announcement 1 states:
the
"This?, amendment-removes
t
restrictions of the regulation from
finance
the extension of credit to
been
apparent., letuipy in. the
-
attacks- from
Washington, but even that is inot ;to be counted on too much.
The TNEC, to be sure, is dead, but Anti-Trust lives on.. At
present,time it is, battening.on the good' reputations oi
oil industry, and of such larg$ companies,♦ as* General
anotherj such as the adaptation
ElCetric, Pullman and i Aluminum; over-riding Army and
of furnaces now burning oil to
Navyv wishes, harassing»them while; all: their; efforts are
the use of coal in those parts of
These j is-, no reason. to: suppose.; that
the. country where the supply of turned to war. work.
oil next winter will not be ade¬
after a while it will!not return to the insurance business.
equip¬
fuel to
the conversion of, heatings
from
ment
of
type
one
the
the
<
.
quate
•
.
of - storm
doors,
indus¬
try at the moment is of course the job being done by the
lire insurance companies- in-handling the new "war damage
weather
strip¬
:or.
for existing
-
equipment;
-
also
"The amendment
restrictions
the
credit
on
installation
storm: windows,,
Most
removes
finance
to
ment'at'this
•
■
time
amend¬
the
of
intended
is
to
one
knows how much is
being written, but estimates run as high- as $75,000,-000.000.
which is close to or perhaps. even in - excess of. the total
ping, and insulation which effect
an
over-all1 saving in fuel con¬
sumption
"The. adoption
conspicuous public service of The insurance
bombardmenti insurance; t No
Of: course the story, of declining investment return: is
long and familiar one.: It stilT continues,-, to be a severe
headache for the companies, and the propriety and necessity
of confining their investments to Treasury issues, even if the
companies-buy only the longest offerings, bid fair to continue
to tighten'the screws.
'
'
But. in* addition most* lines-of< insurance; have-either
already experienced, or, face in the\near future a. cut; in
premium revenues or a sharp increase in- losses. On the
former count, the life companies are already feeling a con¬
siderable cut7 in the sales of1 ordinary life insurance which
is only cushioned in the total figures by the increase in sales
pf group insurance. The increase in sales, which ran through
the first-two years of the war apparently culminated in the
sharp but Temporary peak in December last: year under the
impetus of announcement of coming premium rate increases
and-war risk surcharges.;. While The national'income is still
going - up at a. phenomenal-rate,- life-insurance sales have
year.
Praiseworthy War Job
an
panies, have* in many cases increased sharply in the Idst
„
a
One of
the
transportation,,
of*
*
In, the, meantime the operating problems, of, the com¬
v
themany industries-doing.-a -big job for. the war
Board of, Governors of the Fed¬ and
getting very little public creditior.; it tis-insurance—and
eral Reserve System has adopted,
that, goes- for. the- whole business*. from■ life insurance to
effective
July
27; Amendment
marine war,,risk.insurance; About* the only political benefit
No.v 6 ; to; Regulation Wy relating
to consumer credit.
The Board's the various insurance businesses have reaped from their
culties
Thursday, July 30, 1942'
outstanding fife insurance coverage in the country.
-;T
All this business is being placed by the fire insurance
.
.
v
failed to rise with it.
Fire and
siderable
casualty companies also face the loss of
While insurance
automobile: insurance,
on
con¬
new
part of; total automobile insurances the
estimated;25%, cut:in passenger;driving and 18-20% cut in
cars;
is.-only
overfall5
a,* small;
gasoline consumption—which the rubber manufac¬
will have to be still further reduced if the tires
turers say
last—is
to
are
bound
to
be
reflected
soon,
in automobile
action on the part
of home owners so that as much
T '
v
people without profit.' Strict limits on the charges, the indus¬ insurance premiums.
On the loss side of the picture, the outstanding example
try. can collect for its services are-placed by, the. law- and T
as possible of the necessary work
were* accepted, some months ago.
Tnese are definitely, ex* is- of: course the marine war risk losses. Considerable fat: is
can be completed before the heavy
season for such,work,.arrives and
peetedL by. all, hands to prevent the companies from making also likely to come off the marine companies in the next few
before, the growing wartime pres¬ a cent of .profit:on the business over and -above out-oLppckeii
months because of ; the lag between»the writing of policies
sure on * transportation
and' other costs.: Pees are limited to 31/2%. of: the premium, or $1^000,
last year and the increased marine losses, this year under
facilities«becomes.: more, acute."'
whichever is the smaller;
j. '' * •" 1
T those»policies due to the greater hazards of navigation in
The Board also, adopted, effec¬
The extraordinary, thing, however, is the speed with? war-time even
tive^ July, 27, Amendment, No. 7
apart from the direct: war risk.
\
to the. consumer credit regulation, which the, companies are handling, the business.
Owing tci
T Greatest risk to the private business of insurance today,
removing the * restrictions of' the circumstances, overrwhich no One had any. control; the neces-»
however, is in the growth, of' government' insurance in
regulation. from credit i to, - finance
sary paper work .in Washington was not; cleared up; untie
repairs and replacements of real
increasing* variety-and-volume. While the war has* headed
About, the middle, of; Jtme,, leaving-just: about- a. fortnight 1 off the
or- personal property damaged or
investigations,; it. has accelerated the,: government
lost as a result i of floods or other until the. expiration .of the originalTree insurance authorizec
competition. The New Deal's principal* husiness ventures
similar-disasters:
by Congress, last December to. the extent' of'; $100,0001 oi> were in the fields, where
accounting v can be most easily
War. Damage Corporation liability.
An enormous, demanc twisted; to show artificially low costs,, as in.
housing and
immediately swamped the, companies,- particularly-; from electric
power, where interest and depreciation charges are
corporate managements, trustees, and other responsible per¬ matters
largely of'opinion, and in insurance, where the ac¬
sons: who did \ not care to take the -responsibility; for, leaving;
Into:
tuarial risk can be disguised, minimized; or otherwise pushed
their property uncovered from this .severe, albeit uncertain,
A- Senate- Appropriations sub¬
around.
The actuarial; shell-game, worked; by the* Social
committee urged recently "a thor¬ risk. Par a time -some of the Icompanies. were .handling, ternt
Security Act, (now it's real insurance, now it's 'social insur¬
ough' investigation of the Bureau
The mere-fact; that inside, ance,' now-it's,a premium, now.it's-a tax* now it's a benefit
-of The Budget, covering, in, such jolt thousands off policies a day.
of; six weeks, approximately! the - same coverage is; being
investigation the fitness of the
payment; now it's a pension) is well known to life insurance
written, as• the, total outstanding fire■ insurance coverage.
personnel, methods of operation,
men, while the -phony actuarial'mature of; the government
failure to take prompt action to Speaks,.for, itself?
■■. ...j; ■
-'v;*' V'" ■
:V
crop insurance is well known to the other types ofinsurance
place the Federal Government on
T
On< top of' that the companies deserve credit, for, the:
companies.. ,T yT
A;;;-'
■'•VyTTT
/':■
a> streamlined: all-out; war' basis,
facilitate early
,
-
Budge!; Bureau
-
,
,
'
the- Bureau
rand; whether
should
independent of the Executive
and responsible only to the Con¬
.be:
gress."
'
Committee,. headed
by
Tydings (Dem., Md.), is
said to have declared that a polThe.
Senator
] icy of "deficit financing" has been
largely responsible for the Budget
'
to* maintain
Bureau's
failure
check
"efficient management"
on
the
in
>
a
.
true that for- some
'v,";;:f/TVv/TTVt■
regulations, and forms..
'
The- life
such
no
partments.
-
insurance companies,,
though presented- with,
spectacular, task, have nevertheless
to illness.
-
contributed sub-r
y
The trend Toward:
more
and
t:
■
more
government"* "insur¬
following, bearing.; on the stantially in their own way. A'gents-and agents' organizations! ance" is indicated by an article in the current issue of
report, is from Associated Press have volunteered; for. the war!- bond * savings, program, and Harper's Magazine urging that a system of insurance be set
The
,
.
advices:
'
is
government* de¬
various
It
contributed.
With the war, however, has come an enormous volume
time the. fire companies seemed apa¬
off government, life insurance for soldiers,. plus more and
thetic to bombardment insurance, feeling-it., was a govern¬
more
pressure for: expansion in the; coverage of ' the Social
mental function. But after the;thing, was-.under;ways they*
Security Act; The government is now the largest life under¬
helped 'in the drafting of -the ilawy then helped tout; the over¬ writer* in the
country,.through.the National Service Life
worked War Damage Corporation. officials; in getting the:
Jhsurance Act.
The. latest annual .report of the Social Secur¬
rules, regulations and forms ready, and then ? cooperatedI in
ity Board calls not only for "a beginning" of medical!insur¬
keeping; producers, and public informed ■ about' these - rules.? ance but forgovernment insurance againstt wage losses due
preliminary, and the informative, work .they,
extent* of, up by Congress against . the costs and .pains of industrial, re¬
and despite, conversion back to civilian production after the war is over.
the: fact* that such, sales may; very often, compete.- in* the. Considering what; the: costs,, and ? pains of conversion -to war
work;
theCommittee- recom¬
are, the scope of this proposal,- which is mad£ in an article
mended enactment of r legislation prospect's mind as, an ,alternative • to the purchase - of the:
purporting to have the interest of private capitalism at heart;
authorizing
the
Civil. Service ^insurance on the sale of, which the. agent makes his living.;
In addition, of course, the companies have cooperated closely is ,obvious, and considering that small business is likely to
| Commission to transfer employees
with the Treasury's heavy borrowing requirements, and,have be the. victim in re-conversion to peace, .the amount of politi¬
from one Government1 department
switched their .investments almost entirely to gpvernments, cal tampering with such "insurance" likely, to follow such a
To another, regardless oft the em¬
move is • also obvious.
Thomas Edison once. said?. "Steam
ployees' personal wishes, in order despite the frequently lower: yield to.be obtained thereby
for their policy-holders..
power is business and hydro power is politics." Of-insurance
,
to utilize
their services 'in the
Marine insurance shouldered after Pearl Harbor a larger, it might also be said that "privateJnsurance is .business-but
best interests of the war effort.'
burden than it found it could continue to carry.-Underwrit¬ government insurance is politics.".'
"The report, issued after study
:
reference
"With
of
peace-time
conversion
to
agencies
to
war
have-: made sales
and, obtained, promises to - the
hundreds of millions of dollars at no recompense
,
.
*
of
2,200
questionnaires
various
the
Federal
-
asserted? that .'certain
the National
Board
as
are.
to
officials' of
Resources ■ Planning
well
as
some
of the-Budget: Bureau
and
sent
ing American hulls in Atlantic Coast and
officials
i'have :been
yet carrying on very
dis¬
Gulf waters, the
into such heavy losses that in a few months; House Votes Funds For
Something around $45,000,000 of the $46,000,000.of hull war; ;
T
Naval* Shore Facilities
risk .profits earned in over two; years: previous were wiped
A bill authorizing the Navy to
out, and they found it necessary to reduce their coverage spend $974,634,000 for shore facil¬
very sharply and raise their;rates; steeply* before the; brunt* ities, including $399,494,000 for
aviation facilities and $315,000,000
of the burden was, quite properly , taken over by War Ship¬
agencies, companies ran
,
,
eral; Government
lowed
during
than
the
pasU"*'
was-
decade'
fob pf. carrying, conservation and safety messages to the public
just in advertisements in lieu of straight-out "policy orcompanyname
ads.
;
*
Committee.
The authoriz
tions in the bill included:
Fleet
facilities,
July 22 on a voice vote
$60,000,0C
storage, $24,000,000; liquid fie
storage, $20,000,000; Marine Cor
training,
$11,000,000;
ordnan
storage,
$52,000,000;
personn
training and housing, $26,140,01
The meas¬
hospital and dispensary, $25 00(
supplementing The, recentlyapproved $8,500,000,000 fleet ex¬
000; shore radio, $15,000,000; nav
research
laboratory, * $2,000,0C
passive defense, $25,000,000.
,
creet, but:nonetheless pernicious, ping Administration.. Meanwhile the Cargo War. Risk Re¬
insurance Exchange continues its excellent work, carried
propaganda to the effect that
there, must continue after the war on along lines laid down im World-War-1.
Excellent work is being;done by the casualty, as well
even
greater
mounting deficit
as the fire and the marine companies, in the new techniques,
spending on the part of the Fed¬
RepresentativeVinson
(Der
Ga.) Chairman of. the Naval A
fairs
for
miscellaneous
advance bases, was
House
on
structures and
passed by the
and sent to the Senate,
ure,
also carries a
"for- a kind of
a kind, of
weapon" as ■ described by
pansion
program,
$30,000,000 fund
training
secret
secret
-
and
The Senate Naval Affairs Cor
mittee
on
July 27 in"
a
closed
se
sion voted its approval of
the bi
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4094
156
socialism
(Continued From First Page)
.
have
always termed private enterprise and
simply do not mix. Private enter¬
prise to have the full advantage of individual initiative and
to function
effectively must be really free. If government
THE FINANCIAL SITUATION
i.
What
ment.
371
•
dispassionate student of world affairs is likely to take issue
with the Secretary concerning the natural/ if exceedingly
unfortunate, consequence^ of the ultra-nationalism with
which the world was cursed following the first World War.
We should certainly not be disposed to do other than applaud
his demand that goods be permitted to move more normally
and easily from country to country when this war is over.
We think imperialism in its older and cruder form at least
is on the wane, and we should be the last to mourn its pass¬
we
communism
or
is
to exert an over-all
management, is to direct, or to
coordinate, it must also in large part supply the initiative
which normally springs' from:reasonable
opportunity for
profit as a reward for enterprise—and it must furthermore
statistics
will
the next few weeks
over
demonstrate
influences
these
whether
have
succeeded
in
checking the upward trend in time
lost because of labor controversies
reported
during the first half of
1942.
A 14% increase in business fail¬
during the week ended July
23, raised the total to 190 from 167
ures
supply those checks and balances which are automatic in the week before, reports Dun &
a free
economy. Nor can state socialism flourish without full Bradstreet,
Inc.
The
number,
control. If we really believe that
fully managed economy however, remained well under the
level a year ago when 253 cases
is able to bring the
advantages alleged we should summon were reported.
~
the courage of our convictions and
go the whole way.
ing. In discussing such subjects as these the Secretary is
at his best.'
;
As a matter of fact, we are perfectly certain in our own
Home Building Restricted
minds that the American people have nowhere
nearly ap¬
/',-v,Confused Thinking
IV
.•
With
current residential con¬
proached the point where they really want to abandon their
But unfortunately he does not stop there. Some of his
struction confined to meeting the
traditional system of free enterprise.
The trouble is, we
most impassioned passages are devoted to what appears to
housing needs of the most essen¬
believe, that they do not stop to think these matters through tial war workers, the availability
be a carefully prepared defense of the weird conglomeration
to their inevitable conclusions.
of a sound financing system for
of notions which the President, Mr. Willkie and the others
the purchase
of existing homes
of the same mind, have for months past been preaching
has become increasingly import¬
ant to American home-buyers, it
in season and out, and here he seems to be no better
.
■
■
■
"
reasoner
'
.
The
than
they.
Take this
passage,
for example:'
The State Of Trade
.
Business activity is reported as
compelling demands of war are revealing how great a supply-
the year.
Electric kilowatt output broke into new high ground and
were reported for Detroit industrial activity and
steel ingot production.
of goods can be
produced for national defense.
The needs of peace
compelling, though some of the means of meet¬
ing them must be different. ,
i
V; ; '
*'>;
'
should
be
substantial. gains
less
no
Electric power output in the week ended
July 18th,
367,000 kilowatt hours, a new all-time weekly high and
.
Toward
meeting these ends, each and every nation should in¬
tensively direct its efforts to the creation of an abundance for peace¬
time life.
This can only be achieved by a combination of the efforts
of
individuals,
Governments
the
can
efforts
of
groups
and
the
efforts
of
a
nations.
velt—and about
as
available
in
for
for
sive
minimum
000- kilowatt
tory control.
week's
total
with
compares
hours
for
the
week
Carloadings
the
•
of
week'
stocks
drastically,
and
less
freight
July
18,
according to
revenue
-
change
would
be
the
need
critical war ma-;
home building is of
being restricted to the
amount
required
to
necessity
house essential
ths
war
workers
into
country today is inflation.
That
nation daily is being forced
said.
closer
who
He further stated:
families
about
the
need
for
inven¬
'
One of the chief
ended
would
new
move
heard
ended last Feb. 7.
■for
retail
of
duration
conserving
'3,428,916,000 kilowatt hours in the
preceding week and with
the
'previous record high of 3,474,368,-
The lat¬
the
Because of the urgent
war.
terials,
.
far from those of Mr. Willkie's party.
according to the.
on
July 25 by Fed¬
Housing Commissioner Abner
H. Ferguson.
For the great
majority of American families,
Mr. Ferguson pointed out, exist¬
ing
houses represent
the only
supply of shelter that will be
eral
a
relatively short period, ac¬
cording to these observers.
In
that event, the problem of exces¬
est
7
year ago,
Edison Electric Institute.
The
public would do well to give the most careful
thought to some of the ideas , which appear to lie implicit
in such passages. They seem to us to be quite incompatible
with, if not the negation of, much of what the Secretary has
said at other times and at points even in this address about
individual liberty, initiative and self-reliance. They are an
almost perfect echo of the President's paternalism, his in¬
sistence upon regimentation and over-all economic manage¬
ment by government. It may be argued, to be sure, that it
is better to have such things done by one's own government
than by some foreign regime which has only its own selfish
ambitions in mind, but have we Americans/it may be asked;
reached the point where we want them done at all? If so,
we have certainly strayed far from the doctrines
historically
invoked by the party of either Mr, Hull or President Roose¬
v
increase
li.4% compared with the like<^>—
of
and must help to focus the energies by encouraging,
coordinating and aiding the efforts of individuals and groups.
3,565,-
was
an
stated
was
ruling close to the high levels of
concerns
of the
industry cen7
ters to take up their place on the
armament
production
lines,
he
the
war
these conditions, most
requiring new quarters
danger* which would dislocate the must
turn; to
existing
houses
roads.
This was an increase of whole economy and be disastrous rather than
purchasing or renting
'1,943 cars over the preceding week to the war effort, was the warning a
newly
constructed
dwelling.
this' year; 42,303 fewer than the issued by the executive committee
However, this wartime necessity
'corresponding week in 1941, but of the Chamber of Commerce of does not mean that inadequate
126,607 cars above the same period the State of New York.
housing accommodations must be
two
years
ago.
This total was
The action of the National War accepted.
In many areas of the
127.39% of average loadings for Labor Board in
granting a wage country, there are large numbers
the
corresponding week of the increase for employees of the four Of sound, older houses on the
ten preceding years.
market which compare favorably
"Little
Steel"
companies repre
.>' Steel production for the current sentS a major defeat in the
strug¬ in comfort and design with new
week is scheduled at 97% of ca¬
gle for enforcement of the govern¬ dwellings."
pacity, a decline of 1.7 points from ment's program of price control
Under the FHA-insured mort¬
,last week's rate of 98.7%, the and leaves little hope for effective
gage plan, financing facilities are
American Iron & Steel Institute
price regulation under the present available itil all sections of the
reported early this week.
set-up, says Guaranty Trust Co. of country for the purchase of exist¬
The 97% rate indicates output New York in the current issue of
ing houses
at a monthly
cost
ofi 1,647,700 net-tons of steel in¬ "The
Guaranty Survey.''
:
equivalentT to or less than rent,
gots for the .week, comparing with
Mr. Ferguson notbd. He observed
;■ The bank says the government
production ' of 1,676,500 tons last
now
apparently faces the difficult also that existing homes meeting
week and 1,612,500 tons in the like
alternative of abandoning all seri¬ the -FHA's minimum standards as
1941
week,.*•j.'y.p-t-;.
-y-' - If ■:
ous effort at price stabilization or
to sbundneSs of construction, de¬
:
Department/> store sales on a resorting to more drastic methods sign and location are eligible for
country-Widebasis were up 5%of wage control.
Strong doubt has FHA'-insured mortgages of up to
for the week ended July .18, com¬
been cast on
the possibility of 80% of the FHA valuation of the
pared with the same week a year
achieving even a reasonable de¬ property, with terms extending as
^ago, according to the Federal Regree
of price stability without long as 20 years. If essential re¬
serve system
■
y
;.:' >;. ■ ■ • some form of direct and enforce¬ pairs are
necessary to restore the
; Department store sales in New
able control over rates of pay, the property
to
sound
condition,
York City in the week ended July
bank further states.
amounts spent for such purposes
25, were 3% smaller than in the
also
be financed
by
the
It /is pointed
out that rising may
corresponding week of last year,
mortgage.
according to a preliminary esti¬ wages and rising costs, with their
The FHA announcement further
mate issued Monday by the Fed¬ threat to price stability/are not
eral Reserve Bank of New York. entirely due to legal requirements said:
The upward
Retail demand generally was re¬ and union demands.
"All
FHA
mortgages provide
totaled
857,067
cars,
and
closer
toward
this
"Under
•
the Association of American Rail¬
,
^
,
/
,
The Nation
vs.
the Individual
:
-
:
>
-
<,
Note carefully that it is "every nation", not every indi¬
vidual, which must bend its effort toward creating a more
abundant post-war life. Observe that the goal selected can
be reached
only by a combination of efforts, one must supi
pose efforts consciously directed by government.
Indeed
the Secretary in so many words says that government must
"focus", "coordinate" and "aid" the efforts of individuals
and groups* These are not the only sentences in which the
Secretary preaches such doctrines. On the contrary; much
Of his address is saturated with this type of argument. Is it
„
possible that the "conservative" Mr. Hull has come so much
under the influence of the New Deal type
of economic and
social thinking that he finds nothing strange in these con¬
ceptions? It is certainly most devoutly to be hoped that the
American people have not reached such a point/ > •
^ ■
Borrowed
Notions
r
evidently have here is a large admixture,
doubtless without awareness of it on the part of many who
What
we
speak in this way, of the central doctrines of communism,
socialism, fascism and nazism, We, of course, do not here
refer to the political doctrines of Germany, Russia or Italy,
if it is possible always to distinguish clearly between political
and economic doctrines in this day and time. It is obvious
that the Secretary is free of the aggressive and ruthless
imperialism of such countries as Germany and Japan. He
is plainly outraged by the brutality of their methods,.and,
of course, no one outside of Germany and our institutions
for the insane take much
stock in the master
race nonsense
•
.
.
•
ported sluggish.
weather,
which
Extremely
hot
of summer goods in
centers, proved a shopping
hindrance as far as home furnish¬
the
movement
many
ings "and
fall
new
lines
apparel
constant
The
cash
income
accumulation
in
resources
lower
the
groups
of
hands
makes
of
an¬
other retail buying spurt an ever-
present' possibility
months
of
competition of employers for
available labor supply.
This
competition is apparently result¬
ing in high rates of labor turn¬
for
the
later
the
year, according to
observers.1, It is pointed out that
it is quite probable that before
petually popping up that the vast accomplishments of Amer¬
latter remain
other investments on a large scale,
they will be placed freely again in
consumer
goods so long as the
available.
It is said that such
and
over
«
interference
some
with
production.
war
concerned.
were
deeply imbedded in Hitlerism. But the conception of an
all-wise, all-controlling state seems to underlie both this
newest phase of New Dealism as it does the theories of the
German, Italian and Russian governments. This idea per¬
industry in war production may be taken as a measure
be achieved in times of peace if only govern¬
arises in part from
the
these huge liquid funds will flow
into
Government
securities
or
ican
trend of wages
stimulated * the
.
war
industries continues
relatively low by comparison with
the pre-Pearl Harbor record, the
trend is reported as still upward
compared
as
with
theinitial
months of the year.
<
During
June, there -were 192
strikes in war plants, as compared
with 144 in May. Almost twice as
many workers were involved last
month than in May, and the mandays lost aggregated 275,000,000
during the month, as compared
with
exerted
sort of over-all direction
ment
"coordinated"
over
industry is a variant of this same philosophy—and is
for that reason
or
thoroughly dangerous.
Half Slave,
it to
Half Free
thing appears to us to be crystal clear. That is
no economy is likely to thrive and achieve as all want
achieve while it is half free and half slave to govern¬
One
that
some
a resumption
buying has "been an¬
ticipated right along by retailers.
It explains why' they have not
been generally concerned over the
22,000,000 the month before.
could become
serious, some personnel men fear,
in that it may reflect a weakening
fact that
stocks
bar
instances
of what could
are
of
ago; on a dollar basis.
of
forward
a
year
Because of
difficulties,
on
hand
in
some
almost double' those
growing replacement
a
new-buying spurt
could bring about a drastic cur¬
tailment in store inventories with¬
This rising trend
of the determination of unions to
because of in¬
It may be, how¬
serious war news
interruptions
dustrial disputes.
that
ever,
the
this month and the growing impa¬
tience of the public with influ¬
ences
will
monthly
payments
to
meet interest and insurance prem¬
iums and to1 pay off the loan in
full
the
over
These
clude
prescribed
term.
monthly payments also in¬
j
the
sums
needed
to
pay
property taxes and hazard insur¬
While the total time lost due to
strikes in
for equal
that hold up war production
bring about
a
change.
thereby affording protection
against default on these important
items in the home-owner's bud¬
ance,
get.
The interest rate
on
FHA-in¬
sured
mortgages is limited to a
of 4V2% on reducing
balances, plus the FHA mortgage
insurance premium of V2 of 1%.
maximum
"During recent weeks, approxi¬
mately
1,100
applications have
-
been
filed
mortgage
finance
each
week
insurance
on
for
FHA
loans
to
existing home properties.
In the first half of the year, 21,368
American families completed ar¬
rangements for the purchase of
existing homes under the FHA
plan through insured mortgages
totaling $93,892,210.
■
"Since the start of the FHA pro¬
gram
in 1934,
families
more
have
used
than 360,000
this
method of home
tested
financing to pur¬
chase
sound
existing properties
through insured loans totaling ap¬
Strike proximately $1,450,000,000."
THE COMMERCIAL & FINANCIAL CHRONICLE
372
The
Wage Increase of 5.5% Authorized In "Little
Steel" Case-Five guiding Principles Adopted
Labor Board
War
National
The
16 announced in the
July
on
opinion
workers of the four "Little Steel''
the wage
companies, accepted the
of the
issue,
signed by Robert J. Watt, Thomas
dissenting
labor members
Thursday, July 30, 1942
on
out
of the National War Labor Board
.
.
of 78 cents
mum
-
,
serious strike is
the
the
hourly
Kennedy, George Meany and R. J.¬ increasing
Thomas, concluded, in part, as workers 44 cents a day to
follows:
in all Ford plants. This gain with¬
decision
an
of
pay
mini¬
a
hour.
Accept¬
a
influence
tribute to
a
the
of
Labor Relations Act
National
on
industrial
and evidence of the benefits
peace
accruing under the act to unions
based on
"The conclusion is inescapable ances of the order were subse¬ which have the patience to await
of Jan¬ that the majority carried on its quently made by the Bethlehem, its orderly procedures.
uary,
1941.
This policy, according to William H. Davis, Board deliberations Witn a fixed inten¬ Republic, Youngstown and Inland
"Looking
toward
future
de-*
Chairman, will "lead to a 'terminal' for the tragic race between tion not to grant more than a companies. The Inland Steel Co. velopments,
the report says,
wages and prices."
On the basis of five guiding principles set token adjustment; selecting those on July 26 reserved the right to 'Avoidance of factional strife is a;
Steel"
"Little
case
a
stabilization policy which is
wage
maintaining the purchasing power of hourly wage rates as
forth in the opinion
of the Boards
written by Dr. swept away by 'a change of rules
George W.
Taylor, Vice-Chair¬ in the middle of the game.'
"The
guiding
principles out¬
man,
the " Board
on
July
15
granted the employees of four lit¬ lined above insure, in general,
tle steel companies an increase of that claims for wage-rate adjust¬
the wage issue,
on
test
and
in the Courts.
multitude of facts
and cogent arguments which call
for a more substantial adjustment.
Substituting rhetoric; for analysis,
it has gone all-out for the infla¬
5V2<2 an hour, or 440 a day.: The ment can be considered on an tion thesis, a thesis compounded
United Steel workers of America, equitable basis and in-a manner of
conjectures
and * prophecies,
CIO, had asked an increase of which will further the national fears and hysteria!
It has, in ef¬
12V20 an hour or $1 a day for the purpose to stabilize the cost of fect, accepted the contention, ad¬
living."
157,000 workers involved.
vanced, among others, by govern¬
In accordance with an interim
William H. Davis, Board Chair¬ ment
agencies
which
are ■ not
order of the Board of April 24, man,
in a separate concurring charged with the duty of adjust¬
the wage increase will be retro¬ opinion summarizing the case as ing wage disputes, that there shall
active to the? date of certification a whole, concluded his comments be no
substantial wage
adjust¬
of each case—Feb. 6 in the case of
ments, no matter how meritorious
j 0n the wage issue as follows:
the Bethlehem Steel Co.; Feb. 71
"We
are
convinced
that
the the case may be, and no matter if
in the case of the Republic Steel yardsticks of wage stabilization that increase can be made in a
Corp.; and Feb. 10 in the case of thus applied are fair and equit- manner that is concededly not in¬
both
the
Youngstown Sheet & able and at the same time suffi- flationary. In short, the Board has
rejecting
a
,
Tube Co. and the Inland Steel Co.
The vote
to
cient to prevent
the wage issue was 8
on
ing.
|
v
checkoff
their
tional
include a mainmembership
and
clause
first
steel
anteed
with
and
union
24-year-old
bound
be
be
dissented
the
on
/
ward
were
unanimous
of
Dr.
George
of
guiding
the
Board
principles
later
on
this
case
people." '
detailed
determined
War Labor Board
addressed
to workers alone but in taxation
by Congress, where all our citizens are represented, and where
taxes can be so measured that the
imposed reduction of income will
fall equitably upon all groups according to their financial ability
to contribute to the national purPose and to the preservation of
the things for which we fight,
the
that
guiding
principles
should be applied in evaluating
claims for wage increases:
"(1) For the period from Jan.
■
1, 1941, to May, 1942, which fola
long period of relative
lowed
cost of living increased by about 15%.
If any
group of workers averaged less
than a 15%
increase in hourly
stability, the
wage-rates during or immediately
opinion,
Dr.
Taylor
that the Board arrived at the 5V->0 increase by ap-
preceding or following this period, their established peace-time
plying the guiding principles
the following fashion:
have been
broken.
In
If
2
peace-time
have been preserved.
out
The
cured
15% wage increase or more, their
established
his
pointed
of workers averaged a
any group
a
wage
between
standards
|
steel
had
workers
in
se-
of 11.8%
increase
Jan.
1, 1941 and May 1,
1942 as compared with a 15% increase in the cost of living index
during this period.
Thus, they
adjustments for the groups whose had suffered a loss of 3.2% in
peace-time standards have been their peace-time
standards,
preserved can only be considered Therefore, Dh Taylor pointed out,
in terms of the inequalities or of
they were entitled to an hourly
"(2)
Any
claim for
sub-standard
the
wage
conditions
spe¬
cifically referred to in the Presi¬
dent's message of April 27, 1942.
"(3) Those groups whose peace¬
time standards have been broken
entitled to have these
are
ards
reestablished
tion factor.
as
a
,
continue to 'give
due consideration to inequalities
and
the
establish
of
3.20
in
order to
re¬
their
wage
peace-time stand¬
since the average hourly
rate in the steel industry
is $1.
/
ards,
Since the
2.
dispute
fied to the Board
was
more
certi¬
than two
and one-half months
"(4) The Board, as directed by
President
in
his
April 27
ards of
increase
stand¬
stabiliza¬
the
message,
ously
undermine
to
fort."
will
elimination
with
is
than
More
workers
trade
of
are
unions, and at present 100%
industry converted to war
the
production, has reached relatively
stable
labor-management
rela¬
tions,., according
cluded
in
findings
to
report
a
the
war
ef¬
this
issue
with
"mixed
feel¬
ings." They pointed out, that their
proposal for no > wage > increase
to 4.
\
v
The Union Security Issue
writing the opinion for the
on the union security issue,
Board
of substand-
living.'
in this
against a government
compulsory
unionism
and in favor of a voluntarily ac¬
case
enforced
*
binding maintenance of
membership and check-off, pro¬
cepted
tects both the individual freedom
the
of
workers
and
the
essential
the
on
in¬
auto¬
industry made for the
Twentieth Century Fund as part
of its forthcoming survey of how
collective bargaining works in
the
of
tions
automobile
of
April
that
divergent
"The"
authors
essential
the
to
of
enforcement
union
responsibility,' and a third
problem confronting the UAWCIO is that of avoiding jurisdicr
tional disputes with
the UAWAFL and
other unions."
Evans
Clark, Executive
Fund.
the
Almost
by
Director
the
I Oft fetalis' Etevsswe
M. Jtacard
por¬
report
made public on July 27
were
of
Advance
industries.
major
entire
trade union
of
growth
member¬
has taken
ship
saying:
j;;
■
•
-
The
Treasury
nounced
on
Department an¬
July 22 that internal
collections
revenue
the
in
1942
fiscal year, which ended June
amounted to $13,047,094,333,
cal year.
Vw-.
"In this
the Board protects
case
the rights of the majority and the
minority, rejects the Union's de¬
mand for
union shop and com¬
a
pulsory check-off, and rejects the
Companies' demand for no change
status.
The
The 1942 total
made
was
of $3,065,463,524 in corporation
taxes; $3,239,233,436 in individual
taxes;
$1,647,020,052
in
excess
profits taxes; $1,185,369,467 in em¬
ployment taxes (including carriers
and
tax),
other"
taxes.
.
Committee
on
Social Seecurity of
the Social Science Research Coun¬
cil, assisted by Anthony Luchek,
of
member
Yale
the
staff
Human
of
stitute
University.
of
the
In¬
Relations
The
.
at
authors
1
state;
"During its first three decades
the auto industry granted almost
no
formal recognition to unionism.
Management
strongly
opposed
labor
organization,
and
wage
showed
earners
it.
little
interest
in
technical ex¬
concerned
chiefly
with
Board
decides in favor
of the meeting production schedules to
satisfy an ever-expanding market.
voluntarily accepted maintenance
of membership and check-off of They paid relatively high wages
to attract sufficient workers, and
those members of the Union who
set
their production
rates high
are in good standing on the 15th
enough
to
get
their
money's
day after this directive order, or
worth.
who may thereafter
voluntarily
"Employees
were
apparently
join the union. This provision is
not too dissatisfied with a situa¬
not a closed shop, is not q, union
tion in which they could have no
shop, and is not a preferential
influence on employment condi¬
shop.
No old employee and no
tions.
Wages were high enough
new employee is required to join
to compensate for seasonal layoffs.
the union to keep his job.
If in
union
present
up
$3,910,007,854; in "all
The
comparative
figures for the 1941 fiscal year fol¬
low, respectively, $1,851,987,991/
are
now
for the: most part sin¬
$1,417,655,127, $164,308,967, $925,cerely
attempting
to
develop
856,460, and. $3,010,299,833.
;
working relationships with the
'The returns by States show New
union, while union policy, which
York in the lead with total in¬
was
sharply
belligerent
three
ternal revenue taxes paid in the
years ago, is now marked by
a
fiscal year, 1942, of $2,563,505,078,
more
definite acceptance of re¬
as
against $1,469,859,352 in the
sponsibility."
Managers were
perts
.
.
previous
New
year.
..
York
tax¬
following levies
corporations, $759,330,412;
individuals,
$635,509,347;
excess
profits,,w $403,084,141; employment
taxes, $228,103,899, and "all other"
taxes, $537,477,278.
Pennsylvania was second high¬
est in the 1942 fiscal year with a
total tax yield of $1,157,210,527,
compared with $637,835,831 in the
previous fiscal year; Illinois was
third, showing total returns of $1,088,112,376,
against $609,274,380;
paid
payers
the
in 1942:
Ohio
gate
fourth
was
taxes
with
aggre¬
of
$923,253,163, com¬
pared with $429,938,982; Michigan
ranked next in order with returns
of
766
$781,025,783, against $497,861,and
California
was
sixth,
showing
revenue
collections
of
$745,647,844, compared with $405,677,402.
/
'
The
States
revenue
with
the
returns in the
smallest
1942 fiscal
.
were
North Dakota, with
only $5,717,430, and South Dakota,
with receipts of $6,285,023.
This
year
was
also the
year
States
case
when
in the 1941 fiscal
were
returns
' for..
these
$2,471,746 and $3,051,205, respectively.
The two next
Since the auto centers were boom
lowest were Wyoming, with $8,the union, a member has the free¬
lost or
dom for 15 days to get out and towns, the worker who
727,014, and New Mexico, with
disliked his job had little diffi¬
keep his job. If not in the union,
$8,751,236.
the worker has the freedom to culty in finding another."
stay out and keep his job.
This
freedom
join,
to
to
stay in
join
or
or
not
to
get out, with fore¬
From the
announcement of the
Twentieth Century Fund we also
quote:
"This condition was rudely shat¬
prior to the
knowledge of being bound by this
tered by the depression which set
to Congress clause as a condition of
employ¬
in after 1929.
Management was
outlining the Na¬ ment
during the term of the con¬
faced with
a
tional Economic Policy, the steel
sharply declining
tract, provides for both individual
workers were caught by a "change
market, and workers found jobs
liberty and union security. ~
of the rules in the middle of the
becoming harder and • harder to
"This decision provides against
game."
Dr. Taylor pointed out
get. These conditions fostered the
coercion and intimidation of the
growth of unionism, which got its
that, in view of this factor and worker into
membership in the
first big impetus when the NRA
the greater cost of living change
Union."
was established in 1933.
The au¬
in steel towns as compared with
Dr. Graham pointed out that the
thors trace the turbulent years of
the national average, the Board
checkoff provided by the Board union
had decided that the workers in
organization up to the grad¬
was voluntary since any member
ual
this case had an additional equity
of
the United
emergence
of the union had 15 days during
Automobile Workers as the domi¬
which entitled them to a further
President's
the CIO branch
groups,
large
so
many
16
•
security of the union.
in
eliminated
been
mobile
Mead and Horace B. Horton, the and union.
Auto managers, long
employer members said that they known for their uncompromising
voted with the public members resistance to labor organization,
In
two
has
separation of the UAW
it still contains
elements.''
\ '
say,
'Another
major union problem is mainte¬
500,000 automobile
nance
of the internal
discipline
now
members
of
Surveyed By Fond
i
"In the automobile industry, the
'
In a separate concurring opin¬
rapid evolution of unionism has
ion on the wage issue, written by been
accompanied
by
equally
Roger D. Lapham and concurred striking change in the attitudes
in by E. J. McMillan/ George H. and tactics of both
management
on
the
into
V ' ■■■
whatsoever had been voted down
;
not "in wage determinations by
the
in this
following
standards
their
dissension
30,
the
place within the
largest in history and compares
is to risk a serious blow to
past 10 years, the announcement
with $7,370,108,378 in the 1941 fis¬
morale and thereby danger¬
states,- which quotes the report as
single out the work¬
for such discriminatory treat¬
ment
provision problem still facing the union. Al¬
'
-;
though the chief source of internal
'
automobile
report
was
render many things they have be- Dr. Frank- P. Graham, > public | The
written by Dr. William H. Mccome accustomed to, but that this member, stated that "the decision
common
sacrifice should come of the National War Labor Board Pherson, who is on the staff of the
as
opinion, the National War Labor
has
the
of
Board recognized that all citizens
who have a decent standard of
which living will be called upon to sm>
"In full recognition of its grave
responsibility to the nation, and
Board
renewed
a
improve
W. Taylor, Vicethe Board, outlined
decided
reasons
our
to
ers
To
Mr, Davis pointed out that the
follows:
for
the Chairman points out,
workers.
8
The Wage Issue
the
we may
living of the wage
and, indeed, of all groups
earners
daily guarantee.
Chairman
over
with
together,
standard
the
on
is
war
determination
provision and all three groups on
the Board
"When the
expect>
with. our feet .on the
ground in a free world, to go for-
security
union
of self-restraint in
standards, and the freedom from
apprehension that goes with such
stability
'
by the maintenance
checkoff provisions wiH have 15 days during
which they can resign from The
union.
The
employer members
move
will have
seven-point program.
If all
likewise do their part
we may eXpect to get and hold for
the duration of the war stability of
a
of membership and
labor
basis
odier groups
wage.
desire
minimum
this
made its
guar-
a
Those workers who do not
to
"On
na-
a
granted
for
request
daily
will
what
m
contract
as
—
steel companies to
of
acted,
of on the assumption that the cost of
wage adjustments. We think they living wull now be stabilized. Ob¬
lead to a 'terminal' for the tragic viously and incontestably,, now
means
at the expense of the
race between wages and prices,
.
The Board also ordered the four
tenance
the cost of living
from spiraling upward because
4, the labor members dissent-
union "Security
the
facts which would fit that pattern
message
27,
,
To
Pay On Finnish 6s
Holders of 22-year 6% external
loan sinking fund gold bonds due
Republic of
being notified that
$300,000 principal amount of these
Sept. 1,
1945 of the
Finland
are
bonds have been drawn by lot for
redemption
at
interest
Sept.
par
plus
accrued
„
"(5)
Approximately
20
wage
disputes, still pending before the
Board, were certified prior to the
stabilization date of April 27. The
question
arises in these
cases
whether
wage-rates being paid
April 27, 1942,
cannot
be considered as 'existing rates' increase of 2.30 an hour.
"There
within the meaning of the Presi¬ is no mathematical exactness in
dent's message, or whether they the fraction of a cent which is
on
then
of
had
the
can
tentative
disputed
or
character
rates.
Due regard
must be given to any factors of
equity which would be arbitrarily
which
than
time
be
and still
he
bound
can
by
resign rather
the
checkoff
keep his job.
On July
nant union.
Surveying the "field as it now
UAW-CIO, the au¬
confronts the
17, the 125-man policy
thors say:
specified," he said.
"The exact¬
fraction was supplied in or¬
der to insure a total rate practi¬
Steel Workers of. America, repre¬
cal for payroll
senting the approximately 157,000 been
ness
purposes."
committee
of
the
ClO-United
,*
on
1," 1942.
The
notice states:
"The bonds will be redeemed at
the head office of the fiscal agent,
The National City Bank of New
York, 55 Wall Street.
Holders
are
also
being notified that $124,000
principal amount of these bonds'
previously called for redemption
have not been presented for
pay¬
ment.
Holders may inquire at
prob¬ the head office of the fiscal agent
organization has now if their bonds have previouslyalmost solved by recognition been called for redemption."
.;.
"The union's outstanding
lem of wider
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4094
156
Volume
AFL Head
ing representation
Maps Plan
bodies, both State and
national,-, and distribution of in¬
President William Green of the
ten-point pro¬
a
for a "unified policy of in¬
gram
flation control" aimed at control¬
ference
called
was
by
Matthew
»
said
ference
delegates to the
con¬
represented -* 1,000,000
affiliated with indepeii-S
workers
dent unions."
•
.
Finds
Wages Raised
Meet Living Cost
.
Te
Studies Chinese
The
with
•
Minister,
and-
The
,iye corporate profits through tax¬
ation
.
when
and
Council;
1
he
:
the best: fight that
up.".
•;
up
had
.
social
extended
an
program
with
.
T.
security when war employ-
•ment ends.
:
"
'
'.!
"7,/Voluntary-
contribution
by
all "citizens to the cost of winning
:the
by lalrger investment of
their earnings in war bonds.
"8. Effective control of prices on
war
goods, at the retail and
"consumer
'wholesale
levels,- and
of
control
rents.
"9.
•
Rationing of all scarce commodifies to distribute them fairly
all and to prevent profit¬
eering and hoarding.
;
among
.
,
-
"10. Establishment of the neces¬
have already
the
-
-
January, ,1941.
Dis¬
results of. a survey
turing establishments are entitled
under the WLB formula to make
raises in the salaries and
of
wages
V.
their
employees,
V;':
orders
ture
of
cotton
stitching
tributed
ton
that
if
much
The
have increased as
the, cost of living, 15%
as
Jan. .1,
Treasonable
crease
Wayne L. Morse,
ber
of
a
public
1941, no further wage in¬
economically sound, but
is
would in fact be
mem:
War
Labor
the- National
"This
*
guide
plied, if
necessary,
involved
in: the
labor
in
inflationary.
formula
Board, warned on.July 21 that the
laws against treason will be ap¬
against anyone
organizations who
since
average
to
the
is
not
Labor
future cases, but
.pnly,
Board
of
be
Navy
a
itself
the principle
should be
Such
service under the
1
•
delivered
the
-.
weighing the need for wage ad¬
Davis, Chairman of justments. ■ $';7;'/ • •:;V■■■[■'
H.
NWLB, endorsed Mr. Morse's
.
warning.
To Form Fes
At
labor
said
conference of independent
a
in
unions
26, plans were
July
announced for the
Chicago
of
establishment
an
federation
labor
competition
of
with the American Federation
of Indus-1
Labor and the Congress
Organizations.
Donald F.
Milwaukee, tempor¬
ary secretary of the conference,
said representatives of more than
a dozen independent labor unions
"decided to launch"
had
the
new
would be or¬
"national founding
convention in Chicago Oct. 2, '3
and 4.
The initial step in finance
which
federation,
at
ganized
a
ing the movement, he said, would
be a;
registration fee of 3 cents a
member;
"
<
;
•'
■•/b'r
!
In noting
this action, the Asso¬
ciated Press reported: t"
\ J j
'"Mr.
stated "
statement
views
own
Board
not
the
Later
tatives
to
set
up
of
ment
pointing
done
War
to
out
a'
on
more
than
,
new
a
million
AFL ,and
The
CIO.'
added:
"
with
disgusted
women
.
'The
federation
representatives
by
purpose
.
men
both
was
of
and
the
that
•
Labor* Board
settle
of the proposed
give inde^
third labor party is to
represen¬
requested
unless
these
this
basis,
"must
matters
is
the
proceed
more
rightful place in the or¬
ganized lab of
,
.movgpieqt,' mcfu.d-j
the
effect
of
Labor Board formula
their
to
individual
the
consider
as
now
the
War
it relates
plants, should
harm to
the country
they should grant
wage increases which will bring
on
increased ' purchasing
power
above that specified by the War
as
whole
a
if
Labor Board, and cause breaks in
the
price
ceilings."
'
The
Association
added
that
"while the tying of wages to cost
of living indices will lessen war
hardships,-
we
cannot continue
to
expand, war production and neces¬
sarily reduce the volume of civil¬
or
any
goods production Without all
having to Cut "down our liv¬
•
us
ing standards."
/
:
'
■
'
•
by compulsory arbitration."
Mr, .Morse, who is Dean of the
University of Oregon Law School,
.
was
reported in Associated Press
accounts
.
"As
as
any
we
saying:
this
go
The
..
further and further
war
stoppages
it
■
becomes
we
clearer
cannot permit
of" work,
I
don't
whether they are over juris¬
dictional disputes or what they are
care
over;
they simply have to stop.
our pleas to Mr. Green
"And if
and Mr.
Murray are not sufficient
to get them to settle the
disputes,
I
haven't
any
us
up
doubt but that the
in whatever settlements
a
>' • i''
J f-3 7:
m
i
WPB Tightens Control
!
On Long Staple Cotton
a
we
I
July
War
22
Production
placed
all-
Board
long
on
staple
delivery.
of rcotton
and
hull fiber, essential
terials used in- making
linters
1942.
Exchange
advisers
the
Act of
732
that
announces
under
visers
Advisers;
and
regis¬
were
Investment
1940
of
as
Ad¬
June
30,
This compares with 749 in¬
vestment
advisers registered at
•
the close of
August, 1941.
/
.
"3. Other than that, none of the
reserved cotton may be
used, sold
On U. S. Chamber's
delivered except as specifically!
authorized by the Director Gen¬
or
eral of
Operations of WPB."
/ The cotton reserved is used
nor-1
high strength cotton
fabircs, such as balloon cloth, air¬
plane fabrics, typewriter ribbon,
tracing cloth, and for shirts, rain¬
for
mally
and women's
coats
wear.
'
Sixteen
outstanding ' insurance
executives, representing all fields
of
the
insurance
industry, will
comprise the Insurance Commit¬
tee of the Chamber of
Commerce
of the United States for
ing
Their
year.
nounced
names
the
com¬
an¬
were
July 23 by Eric A.
Johnston, Chamber President, who
in giving the personnel, said:' ;
Pledges War
on
"The Chamber of Commerce of
the
Representatives of managemen
labor
and
conferred
Roosevelt
with
July
on
Presi¬
23
anc
joint
their
cooperation
possible way to win the
in every
war.
all
ance
industry
Nation
of
branches
at
the
insur¬
making to the
but also that*<the
are
war,
of insurance
institution
utmost
/The
group
was
composed of
William P. Witherow, President
National Association of Manufac¬
turers; Eric A. Johnston,, Presi¬
dent, Chamber of Commerce oi
the United States; William Green
President, American Federation
of
Labor,
and Philip
Murray
President, Congress ofIndustria*
Organizations.
** • V-' •
sire to co-oprate in every
to win this
way
United States recognizes hot
only the tremendous contribution
that
is
of4he
'
possible
war.
importance to the contin¬
uation of the American enterprise
system and all' that the American
enterprise
work
of
system
should
ment
"We realize that in this critica]
•
be
' The
implies.
Insurance
our
Depart¬
particularly jmr
portant in this critical
war year,
alone to the insurance indus¬
not
try, but also to the over-all oper¬
ations of the National Chamber:"
'
The committee members
follows:,
are
as
,
James
L.
Madden, Chairman,
Vice-President, Metropolitan Life
Insurance Co., New York
Herman A. Behrens,. Chairman
of the
Board, Continental Casualty
Co., Chicago.
Elbert
S.
National
Brigham,
Life
President,
Insurance
Co.,
Montpelier, Vt.
:
John L. Clarkson, Bartholomay
& Clarkson, Chicago.
Marshall B. Dalton, President,
;
Boston
Manufacturers
Fire Insurance
Mutual
Co., Boston.
Esmond
Ewing, Vice-President,
Fire
Insurance
Co.,
Hartford, Conn
ment and free labor, is at stake
Chester O. Fischer, Vice-Presi¬
We must win the war to preserve
dent, Massachusetts Mutual Life
that system for the future.
Insurance Co., Springfield, Mass.
; "Having demonstrated devotion
W. T. Grant, "President, Business
to the nation's war effort in an Men's
Assurance Co., Kansas City,
astounding war production record Mo.
hour, the future of
our
American
system/ comprising free
we
wish to
now
assure
that
you
for the hard pull to victory ahead
the
representatives of the four
great
employe-employer
zations
tory
for
the
have
first
sat
voluntarily to
organi¬
time
down
canvass
his¬
in
together,
what
more;
do to
win-,the war,.
"At our initial meeting, it was
agreed to' call
upon
you,
Mr.
President, to reaffirm jointly our
wholehearted
co-operation
for
uninterrupted; war
production
and to give a demonstration tc
we
can
our
own
country and to the whole
world, of the unity of
action
of
American
and labor.
why
-
and
management
purpose
That is the sole
we are
Travelers
manage¬
reason
here."
cotton, both domestic and foreign,
under tight restrictions and for¬
bade-
two
February, 1941.
Securities
tered
corporation organized
Act.,
;
-
under the RFC
,
ian
of
or
pendent unions the numerical, and .public will not- only- look .to this
financial strength- necessary to board to settle them but will back
take their
^Patriotic., manufacturers,
studying
less
statement
......
labor
voluntary
and clearer that
ization of the
a
President;
Green, AF of L head;
machinery for adjust¬
jurisdictional disputes,
conference.. asserted
'decided
his
the
Murray, -CIO
into
organ¬
that
and William
a
that
Mr:
countenance,
NWLB
the
on
Philio
four
statement
he said had been approved by the
Cameron,, in
added
and
would
that
reflected
work stoppage by either group.
The public interest is primary to
that of any labor group, he is in¬
dicated as saying..... 1 \•
trial
Cameron of
have
to
Morse's
on
international
in
'
■
Chairman Davis of the Board is
the
Chicago bank's dis¬
Commission
to
,
William
the
investment
Corpora^
Commodity Credit
tion
The
Warfare j
Economic
carefully fpllowed by - employers who seek to
The conferees Said in' a joint
seeks to bring about war /work
support the President's anti-infla¬ statement that
they had gon£"tc.
stoppages over jurisdictional dis* tion efforts. Only a relatively few
the
White - House
to
reaffirm
putes;
This warning was given industries have not already met
jointly their "whole-hearted co¬
to union representatives at a pub- or exceeded
by wage increases the
operation for uninterrupted war
lie hearing in Washington on a 15%
upswing in prices of goods
production, and to give a demon¬
dispute between
the American Since January,- 1941.
♦
1 > /
•
stration to our own country anc
Federation
of Labor's
BuildingJ "A survey of all manufacturing to the whole world, of the unitj
Trades Council: and
the United
industry:* reveals that 67.8% in¬ of purpose and action of American
Electrical, ; Radio
and ; Machine
creased their wages over 15.7%
management
and
labor."
The
Workers, a CIO union, as to which between
January, 1941, and April; statement said:
had the right to paint a Dayton^
"We have come here this morn¬
1942, the base period established
refrigerator
Ohio,
plant,
being
by ' the T War
Labor" Board
in ing to express to you our joint de¬
converted to war work.
.
in
Illinois, the
for
732 Investment
cot¬
.
sary technical
President."*"
home
trict have gone in opposite direc¬
or:
the
wages
being the national
Army,
also
may
the/Board
pledged
-<•>
the
to
Maritime Commission.
increases to the cost of living, in¬
dex'.
The Board specifically said
!:;K: !!>
state's
figures
tions since
or
favor."
..■'-? V
time
states
be used to fill orders placed
before Sept. 30, 1942, for
physical incorporation into mate/
rial
or
equipment to
be
dis-^
on
dent
•*
announcement
entire
may
gated formula for adjusting wage
of the prob¬
some
the
says
the
first
into this country or ginned within
the United States after July 27
of developing the situation in .our
some
a
the fall-off shown in
use
for such purposes.
Reserved
cotton
imported
"2.
as
upturn of 26% in
mortgage volume for May an in¬
crease over
April, in contrast to
stitching thread is
of the rate of
district
saw an
crease
gave
of
Use
froqa
borrowing
whole, this
month's
dollar volume of home
mortgages
recorded.
This
substantial
in¬
1941
of the possibilities
lems and
in
thread.
the
locality
in the manufac¬
use
previous
for
uses:
ginned within this
or
for
or
cies advocated by the War Labor
Board
in
its
recently promul¬
communication,
following
contract to the 13% decrease
the
be
country prior to July 27,1942, may
be used only for filling defense
Soong, Chinese Foreign NAM said:
Minister, according to - the -same
"The disastrous inflationary ef¬
advices, said that the meeting be-i
fects of general blanket wage in¬
gan with an exposition by himself
"of the position of the lines of creases at this time can be avoided
fighting in China, the routes of by careful adherence to the poli¬
which would give the mass of our
omic
manu¬
,
blanket
coverage
"Wage earners a measure„of econ¬
nation's
.
security
wider
the
of
which showed that few manufac¬
time, and increased contributions
for
on
exceeded, by. wage
in¬
the 15%: upswing in living
closing
be put
can
-
costs .since
j
-
said,
.
Manufacturers
or
creases
where
;
"worked out procedure to be followed to assure t that China puts
and
integrated cost control
on all Government purchasing.
"6. A program of progressive
income taxation designed to pre¬
vent personal profiteering in war
and
met'
Chinese-need
get the stuff in."
we; can
•
excess-
how
the
of
"noW facturing industries
saying that
as
know- what
we
increases
bonds, cashable after the
'
as ap-i
"Little
revealed that "more than
two-thirds
quoted by the Asso¬
was
ciated Press
-,
.
..■
V/
Nash, ' New " Zealand July, 23
Walter
industries/ covering
"5. Immediate control of
formula,
in/-the /so-called
Association
Chinese armies.:"'■
"4., Payment of wage
.war.
Wan Labor- Board
was
reported to. have worked out plans
delivering supplies :'to: the Steel" wage-decision; the National
A wage
war
July 22 and
on
for
2,500,000 workers,
j
policy commission,'
consisting of an equal number of
representatives of labor, manage.ment and Government, 'to coor¬
dinate and unify wage policies,
:in
j
plied
stabilization
than
"3.
Warning manufacturers against
Pacific War Council met making wage increases which may
President' Roosevelt at thd violate the recently promulgated
White House
agreements, such as are now in
operation in the shipbuilding-and
•
Supply
cotton
"1, Reserved cotton, either im¬
ported, into
in
about a stoppage of work
jurisdictional disputes, even
application of the laws of
treason, if necessary.";
the
staple
the
limited to 75%
"He
tiation, conciliation and arbitra¬
tion, and submission to the War
^more
reserved for
such
to be settled by direct nego¬
construction
long
bring
'
"2. Voluntary wage
of
to
4
decision.;
grades
over
upon
Labor Board for final
The order provides that the top
situa¬
a
of the great
labor
secretary of the
Educational Society of
America.
President Roose¬
velt and Congress to reject all
proposals for blanket wage freez¬
ing by legislation or decree, the
AFL program proposed the estab¬
lishment of a wage policy com¬
mission of labor, management and
Government.
!
The program briefly follows ac¬
cording.to the Associated Press: ■
J
"1." Wage adjustments through
"collective bargaining between la¬
bor and management, any differ¬
ences
into
one
Smith; national
control.
Calling
do get
ever
Mechanics
ling wages, .profits, cost of living
and cost, of war contracts and at
fiscal
we
tion where either
organizations, o-r. both of
formation and* statistics on wages;
them, fail • to. abide - by the settle¬
hours and other condition of em¬ ment of a
jurisdictional dispute
ployment in various industries.'
decreed by this board you are go¬
"Mr. Cameron, who said he re¬
ing to find that drastic action will
presented the Associated Unions be taken against any one in any
of America, stated that the con¬ labor
organization ; that tries to
American Federation of Labor re¬
cently proposed
"If
various gov¬
on
ernmental
373
Carl N.
Point,
Wis.
William
New
York
\
McKell,
Casualty
President,
Co.,
New
./>
p.;:-
'■
Chase M. Smith.
Secretary, Na¬
tional Retailers Mutual Insurance
Co., Chicago. "
'
J
'•/
;
■
Harold V. Smith,
President, The
Home Insurance Co.. New York.
John M.
tional
•
•
Thomas, President, Na¬
Union
Fire
Insurance
Co.,
Pittsburgh.
J. H.
R. Timanus;, SecretaryTreasurer, Philadelphia Contribuf
tionship
for
the- Insurance
of
Houses from Loss by
delohia.
"
* >
•
L
Mutual
Fire, Phila*
..
>
Train, President.. Utica
Insurance
William'
raw ma¬
"
E.
York
John
Chic. Home Borrowings
Jacobs, President. Hard¬
Mutual Casualty Co., Stevens
ware
D.
Co., Utica.
~
Winter, President,
Insurance
Co.,
Home-owner
borrowings
of
chemical $31,603,000 from all sources in, Il¬
cotton
pulp for explosives and linois and Wisconsin during May
plastics,
except ..to
designated represented a fall-off both from
makers of chemical, cotton pulp.
April and from May, 1941, it is
Under the new long staple cot¬ reported
by the Federal Home
ton order, previously- imposed re¬ Loan Bank of Chicago, but the
strictions'. om • top grades,. of im¬ Milwaukee Courity
metropolitan
Atlantic
nounced
that,
ported Egyptian cotton were tight-:
formerlv
/ssistar* Manager, had
.
^
ened
and
American
extra
staple
Lofton, was (included ,in ,therq.j
.,w
area
was
an
trict trend.
dent
of
exception to the dis¬
A. R. Gardner. Presi¬
the. Bank,
said, that
Mutual
New York.
Tluee
tee,
;
members of the
Messrs.
Thomas,
Fischer.
are
commit¬
Jacobs
members
of
Chamber's board of directors.
The
been
Chamber
recently
Paul
apnointed
L.
and
the
:;
atir
Hardesty,
Manner
of
the
in Chamber's Insurance Department,
solved by free and
Small Businesses Will Be
Determined Soon, Says ABA
Survival Of Many
will be determined during the next few months, it
asserted in the monthly Survey of Business in the August issue
of the American Bank¬
William R. Kuhns, the
I magazine's editor.
"Practically everything done thus far to treat
,the injuries of wartime business
:
the
ers
magazine "Banking," official publication
Association.
The survey is prepared by
ineffectual,"
been
has
casualties
NAM
,the survey states. "Remedies have
all been along the same line, re¬
stricted
Spurs Search For
Scrap
Iron And Steel
converting non-essen¬
to
production,
Appealing for "an additional
putting them on credit relief, or contribution to the winning of the
simply letting them die.
During war beyond that we are making
the next few months small busi¬
now," William P. Witherow, Pres¬
nesses of every kind will come acident of the National Association
tually face to face with the day of of : Manufacturers,, on July * 22,
reckoning about which a great called upon the Association's-8,000
deal has been said and little done. member manufacturers to imple¬
'
of course,
small." Continuing the
Some of the businesses,
are
not
so
"Survey" says:
"There is something
v.
-
that
else
might be done, however, and this
alternative has not had the atten¬
tion it deserves. It should be pos-:
other
r
sible
much
do
to
some
than has
more
1 already been done toward
is President of
a Pittsburgh steel
firm, declared, when commenting
on
his message to 4he N. A. M.
membership, "we can greatly en¬
hance the possibility of shorten¬
ing the war if this scrap collection
campaign is vigorously pursued by
every plant in the country."
who
Blaw-Knox Co.,
con¬
civilian
production, without sac¬
rificing critical materials and with
a net gain to the war effort.
j.
"The
step
natural
this
reason
study is that
has received so little
have been com-
the military needs
The nation-wide
pletely our first order of business
up to this time,
The whole prob- by
and steel scrap
•
J
search for iron
is being conducted
the American Industries Sal¬
lem of civilian requirements was vage Committee with the cooper¬
swept so far into the background ation of State, local and national
that it disappeared from sight al¬ trade and manufacturing organ!
The
formation
of the
most completely for a while.
i zations.
"Only
the
has
recently
very
committee
of
output of munitions and most war
„
goods reached a point where more
,
attention
,
.
Mr.
furnaces to shut down.
Witherow,
verting
these
badly
hurt
or
threatened enterprises to essential
'
forced
has
materials
war
given
be
can
said::
the
to
was
noted in our issue
'
Witherow
July 23, page 287
In his message Mr.
V'■■
-
•
v
land
from
basis of 6%."
rubber
synthetic
The
that
"Now
was
/Jj.
kind
farmers would ask
under similar circumstances.
We
tained
Government
States
control
.
re-i
existence
the
.
of about 24,-
plants, with a total
tons, respectively, a shrinkage of
1,200,000 tons—and the trend
still downward.. As a result,
over
production of around $4,000,000,- is
000 last year, threatened by this some furnaces are being forced
priority
blackout.
Bound
up to shut down and others are oper¬
.closely with the fate of this group ating on a hand-to-mouth basis.
is
that of thousands of retail es¬
The amount of steel
can
we
pro¬
tablishments, service agencies and duce and hence the tools for win-:
many entire communities.
~ j ning the war can be stepped up
"The saving of business whose in direct proportion to the amount
,
threatened
is
existence
Is
by
war
job for
each
community concerned. The
.circumstances
are
different ' in
conditions
mainly
a
fit the
done
.
or
.the
Therefore,
plants.
failure
or
the Government to solve the
prob¬ campaign to secure scrap metal
place of a vigor¬ and also rubber and other ma¬
ous
and
well-organized
com¬ terials
will
depend
ultimately
munity effort to "take care of it¬ upon the vigor of industry's co¬
self.
'
operation."
;
1
lem
can
take the
"On the
hand there is pro¬
one
ductive
capacity which last
turned
out
year
T. M. Brennan,
N.
A.
Secretary of the
National In¬
Affiliated
M
Council,
made
known
substantial dustrial
amount of civilian goods.- On the simultaneously that more than 100
other
hand
there:'is the entire State and local industrial associa¬
mass of civilian population in the
tions are now actively engaged
a,
very
United States to be
necessities.
that
any
It
is
large
...
supplied with
hard
to
number
believe
of
in
Organize
committees.
local
helping
salvage
<
-
"
-
scrap
'/'•
the face of
market
:
about
a
to
domestic
be
civilian
deprived
Mexico
Oily Farm Talks
Praised By Wickard
of
things.that it needs and is willing
to pay for.
The huge prospective
shortage of civilian goods and the
'large potential production facing
idleness
should
be
introduced
to
each other."
,
Boehm Is USO
Comptroller
Chester I. Barnard, President of
•the United Service
From
standpoint, of
the
ex¬
changing scientific ideas and de¬
veloping
cooperative
research
along
technical
and
scientific
lines, the recently-concluded Sec¬
ond
Inter-American
Conference
on
a
Agriculture at Mexico City was
"great" meeting, according to
Organizations,
that William D.
Secretary of Agriculture Wickard,
'Boehm of the firm of W. D. Boehm
his return from the
conference, Secretary Wickard in
Inc.,
announces
<&
who beaded
the U. S.
delegation.
Following
Co., accountants and auditors,
of a radio talk at Washington on
the USO. Mr. Boehm has already July 24 on the National Farm and
assumed his .duties in the national Home Hour explained that the 75
has been appointed comptroller
headquarters of the USO in the
Empire State Building, New York
passed. 76
City, the center for national ad¬
minority report
ministration
of
more
than
800
USO clubs and units in 392 cities
and
towns
and
11
bases.
hemisphere
delegates repreesnting 21 nations,
resolutions
or
without a
a single
even
dissenting vote, this, he said indi¬
cating that "there are few, if any,
differences
tions
or
in
agricultural
situa¬
policies that cannot be
re¬
to their status^
to
attempts
transfer vast sums—presumably in
debt
war
'
.
ond
No Coast Guardsmen are
Marines.
held in Washington 12 years ago.
The Third he said will be held in!
prisoners;
•!
-"The Army reports that of 1,413-
if he said, a resolution
passed at the conference is put
into effect. A motion to adopt the
resolution was made by Mr. Wick¬
wounded, at least 475 have fully
recovered and returned to duty.''
two years,
The casualties by
listed
ard
274.
page
W
'
r
,
,
To Gut Dividends
decided
ada
annual
their
the
on
The
advices said:
same
of
"Prisoners
"Marine
*,- ■'
notice
to
that,
now
bank
the
same,
will
Officers,
—
40;
;
.
the
"In
of war.
/!;//.;■':^'; ;•/"*
.
War 8,690
First World
officers and
•/-//
,
prisoners
Navy
1,022.
224,490 enlisted men
killed or
in action
and,' those
who
died
of their
wounds
totaled 50,510.
In the
of
the
E.
A/
F.
were
wounded.. Those killed
\ Navy 30 officers and 326 enlisted
/.
R.
shareholders:
"I feel it my
Corps
"Coast Guard—None.
."Total
be¬
Drummond, Presi¬
dent of the Bank of Montreal,, ex¬
plained the action as follows in a
'
men
.
were
killed
action, 6 of-
in
ficers and 52 men died of
wounds
and 41 officers and 416 men were
! lost at sea."
/".
" j
duty to advise you
while the earnings of
are
approximately the
the increased taxes this year
a
larger share out* of
take
these; this will result in a smaller
the
from
creation
"this
would
shareholders
Bank of Canada,
S.
General Manager,
stated that consideration had been
ditions
brought
on
by the war
of
that pos¬
so
bequeathed
be
debt
in¬
are
we
follows:
is
worth
buying," Lord
"We will pay the
price for it. and share it, with the
world, but it is only common sense
and justice that the world should
help pay that price. Therefore, the
government should consider forth¬
with
how
that price
could be
"Peace
Perry asserted.
capitalized in international terms.
Just
as
service
we
debt
our
by
taxation, international taxation is
a
perfectly feasible thing.
,
"If this could be accomplished
and the cost, of the war or a por¬
tion of it reimbursed to the victor
Up 50% j
Home Canning
Powers
and
the
to
not
van¬
quished. any debt service col¬
American homemakers — nunw lected
by international taxation
bering 21,000,000—are rallying to will have to be paid by the van¬
create an extra stockpile of home- quished, as well as by other in¬
answers
resentative
over
the
families
by Dr. Louise
Stanley, chief
of the Bureau of Home
With
country
Economics.
regard thereto the
said:
Secretary
shall
then
from
the
as
we
cause
tional
may
are
participants,
as
-
and we
collecting
Powers
they
can
pay
such
and
prepared to accept be¬
it will be
a
tax
transactions
not
in
succeed
defeated
indulge,
on
interna¬
in which they
except
to
our
mutual advantage "
Lord St.rabolgi. it is
noted, sug¬
results of the gested the establishment of a
aviation
questionnaire, pantry shelves this post-war , international
corporation to be owned and man¬
and year will be half again as full of
home-canned
fruit,
vegetables, aged by the victors.
given at the meeting to the in¬
creasingly difficult operating con¬
added:
form
some
curring" was suggested by Lord
Perry during the debate in the
House on July 22, the Associated
Press indicating
his remarks as
reparations
Royal
G. Dobson,
not
enormous
given to a canning ques¬
tionnaire sent out recently to rep¬
the
of
international taxation
ternational
In the notice to the
its
of
,
proportion being available for the, canned food in, 1942, Secretary of
shareholders, and your directors, Agriculture Wickard said on July
He based his statement on
therefore,
have
decided reluc¬ 22.
tantly,, commencing with the next
payment, to reduce the dividend
to the rate of 6% per annum."
effort
war
'..;/■ •.■;■%.///' \ ;
statement,
Lord Simon
allies.'
divided as follows: terity
enlisted men, 681.
were
.
Huntley
rich
The
.
ginning next quarter. Both banks!
however, declared the usual 2%
dividend
for
the past-quarter;
dends.
re¬
port to Congress on June 11 when
he said that 'no nation will grow
■
reported by
war
//'-"Navy ------Officers, 52; /enlisted
men, 249.
!/./;...'■ •.''/
July 21 to reduce
basis to 6%
state¬
Lease-Lend
fifth
his
similar
a
-
dividend rates from
present 8%
made
ment in
President
said
Simon
,
"This
Bank of Can-;
treal and the Royal
VLord
Roosevelt
1,413; missing, 17,452,
! •«
Philippine Scouts—Killed, 479; said, -'provided a firm and solid
wounded, 754; missing, 11,000. .4 basis for cooperation .with the
States
in
winning
the
Navy—Killed, 3,420; wounded.; United
1,051; missing, 7,672.
' /■_ >4 peace.' "
the Bank of Mon¬
of
Directors
!
:
Army—Killed, "902;4wounded,
the Navy were
j
services were
follows:
as
shall not be repeated.
-
-W/j
Oanadian Banks
of
that
•
given by the
institutions for reducing the divi¬
facil¬
--/v^"y;
asserted
"He
Wickard stated that the first was
Higher taxes
ities will be allowed to close down
in
ture
this ,.vital
of
not a very
was
happy one."
payments — from one
from
| country to another as a result of
war
inflicted
harm equally
on
: "Only 20 of the Army personnel
/
:v
reported as missing have officially payer and payee.
"I
can
say
with the govern¬
been reported prisoners of war;
ment's authority," he added, "that
Agricul-j The Navy reports a total of 1,022 it is the determination of the
gov¬
at Mexico City was the sec¬ officially confirmed prisoners of
ernment that these tragic errors
such
conference,
Secretary war, 301 Navy personnel and 721
,
•
after the last war
however, has been received
the International Red Cross.
.
case.
as
a
"Our return to
at
these were
of
question the
^//a//v
the gold standard
to
answer
Lord Chancellor said:
Corregidor in the Phil-*
definite report
because, of, opinion that the
of scrap we can dig up."
conferences are
helpful to thS
•
United States and all the otheii
Mr. Witherow likewise said:,
1
American Republics.
A previous
"It is well recognized that the
great bulk of the scrap collected reference,to the conference.ap/
necessarily must come from in¬ peared in our issue of July 23.
and the treatment must
Nothing that has been dustrial
is likely to be done by success
every case
.
July
on
July 22 quoted
/" v/K///:': /
on
follows:
as
In
casualties
Army
of
London
from
him
ippines; and in Java, they are be¬
lieved to be prisoners of war. No
That is
"Being in the steel business, ! priced rubber for American con¬
.why the vast potential produc-t know how very critical this scrap sumers and at the same, .time
.tion now facing extinction and th^ shortage is.
In July, 1941, the wopld interfere with trade to our
vast prospective shortages of civil-* steel mills had 1,315,000 tons of own good neighbors to the south
WW
! ian goods can be regarded as twip scrap, and the dealers had 4,228,- Of us."
.problems. The only available in-: 000.
Last April these stocks had
Observing that tne recent Inter-;
formation
on
the
subject indi-j dropped to 987,000 and 3,337,000 American Conference on
000 industrial
Lords
22,
casualties remarks Associated Press accounts
heavy
most
since
Battan and
be
not
to
category of missing;
the
into
and
plants With the feeling, that they
should
the
bulk
"The
fall
the, synthetic
of
In the House of
Commonwealth
Army which thus far are not ac¬
curately known. "
:/'./
so
United
To Gold Standard
/
44,143,
of the Philippine
of course, give a flat
complicated a ques-r
tion. But we did point out that the
to
are
according
announcement,
include
not
not,
answer
date
to
Viscount Simon, Lord Chan¬
cellor, stated that he had heard
"no whisper of any intention" on
wounded and missing of Army;
the part of Great Britain to return
Navy, Marine Corps, Coast Guard to the gold standard after the
and the Philippine Scouts. It does
war.
With respect to his further
of question our
could
Sees No British Return
Associated Press, added:
""This total
includes killed,
plant^
/•/' ; .v1//
the very
is
1
the
rubber
rubber.
hostilities
fruits and vege¬
can
prime—when flavor
best and food value at its peak."
outbreak
the
from
forces
armed
of
to
tables at their
July 21 that the to¬
on
able
are
■
tal casualties of the United States
though the cost of synthetic
was
higher : than
tree
even
■.
of the cap-
more
ning. They are nearer the source
of supply for most foods and they
of War Information
The Office
announced
synthetic rubber program?
Theyj
wondered if we would continue tti
produce
\
■
U. S. War Casualties
this
planning a huge
were
of
families will do
months
three
declaration
hence, thereby placing the shares
of the bank on an annual dividend
Should they go ahead
production of na-^
tural rubber for the United States
we
93%
upon
next
develop
when
stated,
and their probable
the amount of the farming will put up enough to
bank's profits available for dis¬ average 184 jars per family. And
tribution in the immediate future. city families will can enough to
Dr.
"The
directors
therefore
ex¬ average 41 jars per family.
Stanley points out that:
;•!,
pressed their intention of reducing
"It is to be expected that farm
the dividend to \lk% at the next
effect
question;
and
is
and significance,
asked
countries
those
243 jars per family, it
while it is added that
the rural families not
to average
it was consid¬
impossible to overlook their
ered
tenure,
needs of the home front.
cates
the
in
were
of 1935 and 1936.
years
are
current fiscal year,
so-!
ing
harmful insects, rural
ciology, ownership of land
operated behind a
-// ' tariff wall that would mean high
;■■■
they
as
upward trend,
rural credit, main-!
taining a fair income for rural
people and disposal of surplus
crops.
He added that rubber pro-i
duction was a popular subject at
the conference, the chief interest
of the delegates of the rubber-i
countries being assur¬
ment the War Production Board's growing
ances
about
markets after the
search for "every ounce" of scrap
As to this
iron and steel.
Shortage of the rubber is produced.
i
vital ingredient
needed for the Secretary Wickard said:
"Again and again the delegates
fabrication of armor
plate
and
<
meat
peace-time
active," operating
very
expenses
diseases, methods of combat¬
and
tial industries to war
or
•
greater
"a
noticeable
was
feeling of inter-American friend¬
liness today than ever before, de¬
is
of
war
continues
showing a steadily This extra food will allow more
and an increasing of the commercially canned prod¬
proportion of the bank's funds is ucts to go to the men at the front
and to our allies—will help 'win
spite the effort of our enemies to being invested of necessity in gov¬
the war and write the peace' with
promote dissension between the ernment bonds yielding a rela¬
;
nations "in this hemisphere." Say¬ tively
low
rate
of
interest. food."
It is indicated that if home caning there was a great diversity of Furthermore, the increased taxes
ners
carry
through their plans
scientific subjects discussed, the announced in the recent Budget
Secretary
listed
among
these: Speech delivered to Parliament they will put up in 1942 a grand
total of 3,887,000,000 jars of food
plant culture and plant diseases, must be taken into account. While
at home.
Ninety-eight per cent of
irrigation problems, soil erosion, the full impact of these heavier
weather forecasting, livestock care! imposts will not be felt during the all farm families will can enough
there
small businesses facing extinction because
The survival of many
the
of
"While the business of the bank and
:
frank discus¬
Wickard also, said that
sion." Mr.
Thursday, July 30, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
374
"Judging from the
Volume -156
THE COMMERCIAL & FINANCIAL CHRONICLE
«Number *4094
by,the Board in this case, we dis¬
Stabilization Of Wages In Nine
tripartite
Board«took
William >H,Davis
dwelling
division
the-
-of
the
after
under,
case
recently (July 7) announced thafthe Board, by a vote of 6 to 3,'the
month,
than
con¬
the
"/O 'June,
sideration for further information
6f the National War !Labor»Board
units
previous
sent from the order of the Board."
A
Chairman
375
Permit
mediation panel,presented
unanimous .recommendations.
a
valuations
reported
in
the
and 63%-feweij
provided
in
number
1941.
Dwelling
units
in
June',
for
1942, decreased 57%, as compared i
corresponding month oft1Q49
c Qi Q in
q?i
1Q41 ^
^ T iKriT* 1
^
j
'SHU 5,919*111 JunG, 1941»
of George^W. Taylor, Vice-Chair¬ 1941,' Secretary of'! Labor; Frances
J1'
'' i"
V T » •, *
: i• •','!*"
/*'" '■
v
'('Principal »cehters df various
Perkins reported on July 25. "All
man of the) Board;' E/J/McMillan,
/
"For the 4,000 or 5,000 workers employed at The plants, those're¬
classes of ^construction -shared Tn types- of building construction ' tor
employer representative, and Rob¬
which permits were issued or con¬
the decjine," she said. "The
ceiving base rates'of 640 per'hour or less will receive an'increase ert J.
great-(
Watt, employee representa¬
of 70; those receiving 650 will re--*
est decrease, 68%, was in new resi¬ tracts were awarded in June, 1942,
—T*—~—
—-— tive.
./ \/V "/%i'.
ceive an increase of 60, and those wage scale which, in1 these times.
dential buildings."' She addedThaf except those-awarded by the War
Companies involved in the dis¬ "new:
and Navy Departments, Maritime
receiving more; than 650 will re¬ would serve principally- to in
nonresidential buildings
de-|
pute were: U. S./Finishing Co.,
ceive an increase of 50 per hour. Crease their labor-turnover." / >
creased T7%, while additions, al¬ Commission,
and
the
Defense
As to the companies'1 main argu¬ Norwich, Conn.; '■ Lincoln BleachPlant ' Corporation ; which
The union involved, the Federa¬
have
terations, and repairs 'were '43%|
ery & Die Works, Lincoln,;Rhode
been
excluded " because of their
tion of Dyers, Finishers,!Printers ment-against wage1 increases, that
lower than during
June,' 1941. lit
and Bleachers of America, CIO, their volume of business would be Island; Bradford Dyeing - Associa¬ should 'be
borne in 1 mind 'that confidential nature, were: Bridge¬
had asked a flat
100 {per hour less thans it was in:1941, Dr. Tay¬ tion,^^Westerly, iRhode -Island; building permit figures ' include port, Conn., T-family dwellings"to
Acme "Finishing Company, Pawcost
t■ ' "
' '
$452,000; 'Somerville, 'Mass.;
construction' within "city
wage
increase.
The companies lor remarked:
limits
tucket, Rhode Island; Apponaug
had offered a j/50 per hour in-i
"The War Labor Board.is of the
only and that most of the heavy storage buildings to cost $555,000;'
Company, Apponaug, Rhode 'Is¬ Government
crease.
Ti/Tr;.
conviction' that o stabilized wage,
construction is outr Weehawken, !N. 'J., public works
v
"Dr, George W. Taylor, Vice- to which the workers are entitled, land; Glascow1 Finishing Company, si'deThe corporate limits of citieS to '"cost "$576,000; 'Endicot.t, VN. SY.,
Glascow, <Conn.; Greenville Fin¬ and towns."
factories to .cost $2,530,000; New
Chairman, who wrote the opinion should not be withheld solely on
York" City—Borough of Brooklyn,
•for the Board in this case, pointed the assumption that 'the volume ishing ",'vC o m p a n y, "Greenville,
Secretary ,'Perkins
further
Rhode Island; Kenyon Piece'Dye
factories To cost1 $760,000, and a
out that during March and April of business will fall Off. To
stated:
begin
:;V:Works, Kenyon, Rhode Island,, and
school to cost $779,000; 'Borough
of this year wage increases of 100
with, there is 'Simply 'noVsound Providence'
"June {permit valuations were
Dyeing Bleaching* and
of ' Richmond, "2-family - dwellings
an hour;for men and 70 an hour
basis 'for
any 'accurate testimate
28% lower: than during vMay. The to
'Company, ^Provi¬
cost $555,600f Melrose' Park,'
for women were negotiated by respecting the volumemf business Calendaring
111.;
decrease consisted of a falling off
dence, Rhode!Island..
•
a 'factory' to
this union for :13,000, workers in that 'will • be • secured
cost -$500;000;'Ham¬
*by these
of 37% in the .permit valuation
the
mond,Tnd., ".Lfamiiy 'dwellings tometropolitan
area ,of
New plants in the months ' to ; come.
of new residential
buildings and cost >$488,000; 'Detroit, "Mich., TYork and New Jersey, and a mini¬ They are devoting an
increasing llckes Fishery Coordinator
27% in the valuation of new non¬
mum of 850 an hour for male em¬
family 'dwellings To cost1 $2,754,percentage of their facilities.!to T President
Roosevelt on*July/21 residential
buildings.
Indicated 000,' an'd "factories' to cost * $1,144,ployees and 620 an hour for fe¬ war production. Nor can the'War
designated' Secretary oft the*Inte¬ expenditures for additions, alter-! 000; "Highland "Park, ^Mich., 'fac¬
male employees -was established. Labor Board contemplate
approv¬ riorHarold!L, Ickes as 'Fishery ations, .-and * repairs (.were prac-' tories' to
This - compares 'with an average
coSP$679,600;*'Cincinnati,
ing a • relatively : low and unsta- Coordinator./
'/<
tically the same during * June as O.,. factories
to .cost *$532,000;
hourly wage • of 'approximately bilizedwage schedule' solely be-;
"In' an executive order, theTres- during the preceding month.
; Cleveland,' O., 1 -family 'dwellings
•63.50 in the plants' involved in1 this cause' the overall necessities of 'a
ident said'the purpose of the new
"During the first half of 1942, to "cost '"$474,000; 'Kenosha, Wis.,'
Case.
< In
addition, he stated, the war production program may re¬
job was for "developing and as¬ permits were issued tin reporting factories To -cost t$1,545,000; St.
average: < hourly
earnings
for sult in decreased production ■.and
suring / sustained .production of cities for buildings valued at'$1,- Louis, "Mo., - factories To cost $1,workers in The finishing industry in "a
consequent increased unit
aquatic food supplies essential to 145,841,000, a' decrease' of 23%, as 100,600; - Washington,' D.r C.; multias a whole amounted to 69.50 per
cost in this1 industry which is nor¬
the conduct Of" the present war, compared with the:
hour."
corresponding family dwellings To cost c$2;437,mally • devoted' to the production
and for the further purpose of period df 1941.Permit .valuations
000; "Baltimore, Md., factories To
V "The New England group," Dr. of consumers' goods. Such funda¬
coordinating • the - policies, .-plans for new residential buildings for cost '$2,090,000; Alexandria, Va.,
Taylor stated, "competes mainly mental and vital .problems may and
programs relating to the war the Tirst half: of the current year multi-family dwellings to cost
$1,with' the southern area, but cer¬ have'to be faced by this consum¬
effort that effect the fishery in¬ amounted to
$517,134,000, a -loss 956.000; Arlington "County, "Va.,
tain of its members are in direct ers'
goods
industry. - The \ War
dustries and the aquatic food sup¬ of 31%, as compared with the first
multi-family dwellings to cost $2,competition with the metropolitan Labor' Board concludes, however,
plies of the United States, its ter¬ 6 months of the preceding -year. 656,600; 'Corpus ' Christi, Tex., a
that a -solution to the resulting
area."
'He further said:
ritories- v and ' possessions."
Over the same: period; new non¬ factory ito :cost
The
5$5,000,000; 1 Los
T 4 "There is no doubt, moreover, profits difficulties of5 such com¬
President, acting under the au¬ residential' buildings showed a de¬ Angeles, Calif.,11-family dwellings
that the wage levels in the New panies is not to be found through
thority vested in him by the First crease-of 12%, and additions,.al¬ to cost $930,000;'Torrance, Calif.,
the recognition of sub-standard or
England area bear a relationship
War Powers Act of 1941, indicated
terations, and repairs a-decline of industrial buildings * to "cost • $6,This would
to wages paid in other branches of unstabilized wages.
the duties* Of the Fishery' Coordi¬ 21%."
800,000, and '"San 'Diego, Calif.,
not only'be grossly inequitable to
the finishing and of the textile in¬
nator as " follows:
recreational facilitiesv to cost $1,/ ' >
The -Labor
the employees affected, but would
Department's
an¬
dustry. It is evident, therefore, that
316,000.
"(a) Maintain close liaison with nouncement added:
be a highly impractical way to
t
*'1 "•
'
'
its
employer members dissenting, had issued an order stabilizing wages
in nine New England textile plants.
'The Board's announcement
iwjln June^1942-^^19^nSS
ia^i
with the
The special division was composed
'rin! !
*
'
■
,
•
•
,
,
.
-
*
-
changes in the wage
paid-in other areas of the
finishing industry have a bearing
•upon the rates to be paid in New
■
significant
rates
England under
practical
any
pro¬
^hese
to
operate
appropriate ^Federal,- .interstate,
State, and local agencies,-and with
fishery and allied industries, -and
business < in
a
days of increasing demand
for labor.
"It is
•
•
Obtain
concluded,;'therefore,"that
.
currently
formation .for
price ceil¬
ings-and the possibility of a de¬
priate
from -them
the
Federal
of
use
agencies
"Tabulations
Labor
in certain New
competing
(
"
.
.
.In order to effect a sta¬
bilization
of wages in
the.textile
finishing industry, ibis incumbent
upon
the War «. Labor Board at
least substantially <to narrow the
wage
differential
between
the
New England and the metropoli¬
measure
politan'
case
are
shall
of New York.
be
a
>
liaison
officer
responsible
so
•
V1'-' T
T
*
"AH the evidence fails to show
that
the
mended
wage
increases
recom¬
by .the ? panel would : in¬
evitably require a readjustment in
Othe prices presently set-as a ceil¬
ing.
It • is ' fully 'recognized ? that
several of * the subject companies;
presently lacking in financial
ability -to >pay increased wages.
The Board points out, however,
that the ability, of this industry '.to
are
ffor
New
Additions,
ers
fidential
or
a
^
view
...
ex¬
con¬
of
because
"4.
construction
-56.5:
Construction—
New
concerns.
of The
.
—26.8%
tions,
'All
&
first
|
v
half
—27.6%
cities
of
0.1%
—
Comparisons
in
> ■
•
-
of .permit
i
1.7%'
valua¬
reporting Tor The
are
>
'
-Months of 1941 to
•
First 6 Mos.-of.1942
Class of <•;
from
*
•
;;
.Construction—
residential--^
Excluding
"All Cities
—36.6%
N. Yi
—37.0%<
repairs
—
Maximum' ery industry; and advise the. War
All
«fe
construction
non-
'Washington "stated:
Inter-American
tries'and'this- country set' up con¬
of theTlowbf coffee to the
United-States.
'1
"The
agreement
provides
Arabian
and /African
possessions,
allocated' by Presidential order.
0.1%
—22.8%
—
.of United States coffee from
2,7%
signatory quota * for: the
%
non-
are
in
posltionTo supply it, it'has been
a:
-18.8
/
'In ordtrToi facilitate-the entry
decided not
—
for
•
Iheventry of 355,000 bags of coffee
7.3%
-altera¬
tions,
from
signatory countries which
—12:4% •
Additions,
of
trol
City
New -non-residen¬
tial—
import .quotas
taken 'under The
"
New
•
from
non-Signatory
«, countries,
mainly iBritish and Netherlands
Change from First 6
:
y
.
rshortage
coffee agreement'by which the 14
•Latin-American f producing.«coun¬
—25.4'
1941%and T942
•
.
{threatened
."The action, designed to facili¬
tate The 'movement >: ofcoffee to
the 1 United " States -'market, was
—20.3%
—
ihown'in'the following Table:
:•
Department -an¬
"July 17 that'because
'
repairs
construction
tions
the
on
American countries 'after Septem¬
ber. xAssociated
Press .accounts
—20.3%
non-residen¬
tial
as
N. Y. City
—26.8%
i
coffee
;
; "'Excluding;
Additions,altera¬
living,
administration
,
All Cities
New residential
•
lower- cost
/
'"State
coffee vin the ^United States, there
wilhhe'no further .'allocation f of
'
•
mills
of
-55.6:
Change from May,
toward
.
To Aid 'CofFee Industry.
The
nounced
-^'41.7%
:
1942, to June, 1942
a
well; products as determined ' by ap
as
much more expensive fabrics! propriate Federal war
agencies.
such as woolens and worsteds. '.,1; To this end'the'Office of Fishery
much finer texture,
City
—46.5%
-42.6%
Class of
case
very
■
dur¬
-66.5:
-46.5%
....
(All
their
all with
.
awarded
pri¬
•
insuring
an
ade¬
the companies in
produce lower cost goods:■ quate and sustained .production
whereas the rest of ".the industry! and supply To meet 'the require¬
includes plants finishing goods of; ments ; for; fish and bther. fishery
case,'
this
" to
.
tial
secreinature,pertain¬
•
•
,
construction.
-68.2:
ing! to; the prosecution of The war.
'-"(b) (Make specific recommen¬
utilization
and-the whole of-the industry! maximum
in considering this services, and facilities,
ds not helpful
addition
All Cities ~'N. Y.
repairs
above,
v-
were
ing. June Tor the following pub¬
licly -financed .housing .projects
State
altera¬
tions,
enumerated
cept plans or operations of
with
and
,
"Contracts
of
non-residen¬
■
the
Construction—
tivities
"
wage
in
municipal
residential.™
,
to
and
New
Ceiling prices established by Coordination, with the approval
these New j England t finishers Tor of the'Coordinator or'Deputy Co¬
the class of goods they, are(now ordinator,.< may - advise; interstate,!
pay a certain Stabilized-wage can- finishingr do -not (provide for -the state,' and1 local
agencies regard-!
pot in justice be-determined j for absorption • of the wage increase
ing "conservation' practices • of the
ordered by the Board in this case;
all solely by reference to the sit¬
uation at the highest-cost mills.!
"5.
Supporting the -President's fishery {industry; ;advise, appro¬
It is inevitable that the wage in¬ seven+point stabilization program! priate Federal agencies with re-!
crease4 ordered
by the Board in and the effort *of the 'President spect to the
materials,4equipment,
this case : will represent a-greater and the Congress To control; the
and supplies required byThe fish¬
cost of
burden to the higher-cost
through the effective
than
Federal
that former relation-
ing points:
(
by
keeping the- Office of Fishery' Goordination 1 currently informed on
all plans and-operations of such
agency- which may affect the .ac¬
paid by
the vNew 7England companies
is
above The average in'the cotton
textile industry in New England
and • will still compare favorably
average
sMll
:
in »; -any /^substantial
area1
designate '
who"
not
with those;in .the metro¬
The
"2.
England-compa¬
Bureau
containing" the indicated number
of'dwelling: units: Massena, '4N.' Y.f
$1,050,000 Tor . 300 units; Tona-^"
June, 1942, Federal and State
construction in the 2,330 reporting wan'da, "N.'.Y./ $4(229,000 (for. 1,200
cities totaled $38,109,000; for
May, units; Ambridge, Pa., $288,000 for
1942, $89,395,000, and; for June, 72 units; Johnstown,. Pa.,!$389,000
for 100 units; Newark,-Del., $625,1941, $101,194,000.
; u;
000 for T50 units; Montgomery,
^'Changes in permit; valuations
Ala., .'$140,000 Tor-44 -units; Chula
in The:.2,330 reporting cities be¬
Vista, X^alif.,r$855!000 Tor-300 de¬
tween June, 1942, May, 1942, and
mountable units; Redlands,> Calif.,
June,1941, are summarized below: $160,000 for 50 units; San 'Diego,
Change from'June,. ' Calif.,
$2,657,000 for 955 demount¬
1941, to June,11942 '> able %
units, -and 'Portland, Ore.,
V
'
Class of
v
Excluding $242,000ifor(85 units."
vate
• the
: textile/ industry,1:even
'hough a reasonable wage increase; dations To .appropriate Federal,
iships may, in . general, be rein- is given the latter's/ employees interstate,- state,, and local agencies
as a result of present- negotiations.
stituted."
and to-fishery and allied indus¬
|
"3. The wage comparison ^-be¬ tries,, for the purpose of- encourag¬
f - On the question • of 'price ceil-'
ings, Dr. Taylor made the follow¬ tween, these New England .finish¬ ing -coordination of effort and
tan-areas
.
"1.
the
For
agency
The New
nies involved in this
:
Governments
appro¬
relative
,
result of increases negotiated in
the metropolitan' area, ; as well as
of
Statistics, include contracts
awarded
in¬
(. "The War Labor Board has the
to
the
conversation, j production,
creased'volume of business should
responsibility for considering in¬
processing,
packing, transporta¬
not preclude the establishment'of
equalities in wage rates as a basis
tion, marketing,-, and consumption
a
stabilized wage scale in these
for adjustments incident to the
of fish: and other fishery products,
plants."
wage
stabilization {program. In
and to: the: construction, * procure¬
The dissenting opinion of < the
this connection. it is important to
ment, conversion, substitution, re¬
the <present > case
to note that employers, written 1 by E. J. Mc¬ placement and repair of - fishery
previously well-established wage Millan,-and concurred in by; Roger industry facilities. - To facilitate
differentials in this industry have D. Lapham and George- H. Mead, this
exchange of'information the
made the following points:
v
I head of each such
recently become unbalanced as a
Federal
England plants not
included in the present case. T "
'
■
attempt
the existence of present
for, wage stabilization.
gram
<
to
allocate
the
nonT
year.
be¬
ginning Oct.T," 1942/ the State'De¬
partment said."
;
Aside from any equities due to the ^rice Regulation {Order and be-' Production " Board, when and to
The
"New
Inter-American
employees concerned, the.present lieving that the - success - of this the extent requested by the Board
Coffee
housekeeping dwellings
determination - recognizes the>ob-h whole program will prove to' be:
for which;permits were issued.-in Board recently increased quotas
with respect to supply, allocation,
much -greater
vious
fact
that The higher-cost of
the 2,330 reporting cities in Junej.from. signatory countries by more
value -to the
and procurement problems Of 'the,
mills cannot possibly be helped by working man than-the granting
1942, will urovide-14,743 dwelling Than 5,006,000 bags; referred to-in
the
provision of a sub-normal. of such wage advances as ordered fishery industry."
units, or -39% less than the 24,240 these columns July-23,-page 285.
•
.
.
THE COMMERCIAL & FINANCIAL CHRONICLE
1376
Industrial
Activity Continued To Advance In June
federal Reserve Board Reports
defense
quate supplies of rubber to meet
the
areas
of the
country.
It
is noted that recommendations of
military and-civilian needs of
the
Thursday, July 30, 1942
home
the
building industry
tively.
Total dividends paid out
by these enterprises amounted to
$14,000,000 in each of the two
years.
The combined assets of
Association,
chartered
in these corporations totalled $216,complete control of the
The Board of Governors of the Federal Reserve System reported War .Production Board but under July
to
merge
the
National 000,000 at the end of 1940 com¬
Builders
Association
and pared with $235,000,000 at the end
the bill the rubber from alcohol Home
on July 24, in its summary of general business and financial condi¬
Builders
Institute of of 1939, while surplus decreased to
tions in the United States, that industrial activity continued to ad¬ grain would be taken over by the the Home
vance during June and the first half of July.
Volume of goods dis¬ new agency. r Present plans of the America, were discussed in a re¬ $64,000,000 at the end of 1940 from
official
conference
with $76,000,000 at the end of 1939.
tributed to consumers continued substantially below a year ago and WPB restrict the synthetic rub¬ cent
ber program to 800,000 tons, made spokesmen
for
major
Federal
commodity prices generally showed little change.
"For the construction, mining
The Board's summary continues;»
up
as
follows:
700,000 tons of agencies dealing with war hous¬ and related machinery companies
of products and in some cases re¬ Buna
S, including 200,000 tons ing. The home builders urge that (11 corporations)
the combined
Production
quiring price reductions.
On the from alcohol; 20,000 tons from the same method of allocation sales amounted to
$127,000,000 in
"Industrial output increased fur¬ other hand, Federal approval was
for war housing be used as in the
1940 as compared with $106,000,benzine, and the rest from pe¬
ther in June and the Board's sea¬ given for higher prices on vari¬
provision of critical materials foi 000 in 1939. .Net profit after all
troleum.
sonally adjusted index rose from ous processed fruits and vege¬
WPB Chairman Nelson objects heavy industries engaged in arma¬
charges totalled $8,700,000 in 1940
174 to 177% of the 1935-39 aver¬ tables, textile products, petroleum
ment production.
If the supply against
to the bill because it would per¬
$7,300,000 in 1939, equiv¬
age.
Production in the machin¬ products sold on the East Coast, mit a
is not sufficient for the, 200,000
alent to 6.9% and 6.8% of sales,
great diversion of critical
ery, transportation equipment, and and services supplied to consum¬
home
units
now
authorized for
materials from the munitions pro¬
respectively. Total dividends paid
other armament industries con¬ ers.
private
construction,
a
lesser out by -these enterprises were
gram and because it would split
tinued to advance, reflecting fur¬
"Retail prices of uncontrolled
number should be fixed upon.
up the centralized control of the
$4,200,000 in 1940 against $3,400,ther progress toward meeting the foods advanced sharply from May
In our issue of July 16 (page
flow
of materials between sep000 in 1939. The combined assets
^requirements of the war produc¬ to June and the Bureau of Labor
180) the proposed union of the of
aiate agencies.
these
Mr. Nelson's op¬
corporations
totalled
tion program.
Steel production Statistics price index for all foods
two organizaions was referred to,
position was reported in these
$146,000,000 at the end of 1940,
declined somewhat in June but rose IV2
points to 123% of the columns
the objective being the working
July 23, page 286.;
compared with $138,000,000 at the
increased to earlier high levels 1935-39 average—an increase of
out
of
means
whereby private end of
Reports that Chief Justice Har¬
1939, while surplus in¬
in the first three weeks of July. one-fourth since the beginning of
home building may be kept alive
lan F. Stone was being considered
creased to $32,000,000 at the end
ILumber production increased sea¬
;he
current
advance in
March,
during the par period. :, of 1940 from
by President Roosevelt to make
$28,000,000 at the
sonally in June, while in the fur¬ 1941.
Definite allocations by the Re¬
an
end of 1939."
independent inquiry into the
niture
Bank Credit
industry, where activity
rubber situation brought from Mr. quirements Committee of WPB.
With respect to Report No. 21,
usually rises at this time of year,
the announcement July 26 from
"Member banks in leading cities Stone on
July, 24 the statement
the SEC said:
there was a decline, reflecting in
the National Association of Home
increased their holdings of Gov¬ that he had not
accepted such re¬
qpart the fact that a number of ernment securities sharply during
"Forty -corporations
Builders said would substantiate
engaged
sponsibility and did not intend to.
qplants in the industry are being the first half of July.
Purchases The President told his press con¬ the new system of local priorities primarily in the manufacture of
•converted to the manufacture of
paper and allied products are con¬
included
portions
of increased ference that he had consulted with issuance recently inaugurated by
war products.
tained in this industry group. One
Treasury bill issues and of the the
Chief
Justice
but
doubted the War Production Board to en¬
"In
industries
manufacturing new
2% 7 to 9-year bond.
This whether he would ask him to take courage private builders to ex¬ of these corporations, Interna-;
non-durable goods, output as a
tional Paper and Power Co., is the
followed a substantial growth in such an
assignment. ' Vacationing pedite early provisiori of the vast
whole showed little change from
parent of International Paper Co.,
volume of war housing units sc
the second quarter of the year in
Franconia, N. H;, Chief Justice
.'May to June.
Textile production when
member
banks
absorbed Stone would neither affirm nor vitally needed. The system would which in turn is the parent of
declined somewhat, reflecting
Southern Kraft Corp.
a about
Both of
$3,300,000,000, or more than deny that the President had asked give assurance to the builder and
reduction
in
activity at cotton half of the increase in Treasury
these subsidiaries are consolidated
him to make a survey of the rub¬ the mortgagee that specific pro¬
mills
from
earlier
peak levels.
in the statements of their respec¬
jects will have what is necessary
open-market issues. All classes of ber question.
'
Paperboard production decreased banks showed large increases, the
for their completion. It was added: tive parents, and to avoid duplica¬
From its Washington bureau on
sharply further and there was also
"Appearing for the home build¬ tion, their figures are not included
largest percentage increases being July 22 the New York "Journal of
•a decline in activity in the print¬
in the combined totals.
Data for
:n
Chicago and at reserve city Bommeree" reported the opening ers, whose all-industry organiza¬
three other corporations are also
ing industry.
On the other hand, banks.
tion will be
completed upon ?
of debate on the measure by Sen¬
omitted from the combined totals
xmtput
of
manufactured
food
vote now being taken of the local
"Excess
reserves
of
member ator
Barkley who said: •
because their data were not avail¬
products increased and shoe pro¬ banks have been at a lower level
"I don't delude myself that I associations of HBA and members
duction showed less than the cus¬
in
both years.
Combined
and local chapters of HBI, were able
in July than in June, because of
can defeat this bill.
I take it for
tomary seasonal decline.
Frank W. Cortright and Rufus S. totals, therefore, represent 35 en¬
increased need for reserves arising
granted the Senate will pass it.
"Mineral production continued
out of deposit growth, the con¬
Lusk, Washington representatives, terprises. For these 35 enterprises
But I want to point out the effect
large in June.
Coal production tinued currency drain, and a large
and Carroll Shelton, Secretary of combined sales amounted to $605,if
both
the
House and
Senate
was
maintained at peak levels;,
the new National Association of 000,000 in 1940 as compared with
temporary increase in Treasury should
pass the bill and the Presi¬
output of crude petroleum showed
Net profits
Home Builders. The meeting was $498,000,000 in 1939.
deposits at Reserve Banks.
Sub¬ dent should
sign it."
s^little change, following the sharp
V
after all charges totalled $56,000,stantial System open-market oper¬
The
advices
from
which we arranged at the request of Joseph
decline
that
occurred
during ations
D. Keenan, chief of the A. F. of L. 000 in 1940 against $29,000,000 in
partially offset the loss of
quote added:
March and April. Lake shipments
YVY' ''.Js .'j"'"' 'V'.
Reserves from these sources.
The
1939, equivalent to 9.2%'and 5.7%
Section of WPB, who presided."
"Mr. Barkley said that, while he
of iron ore in June amounted to
of sales, respectively.; Total divi¬
decrease in excess reserves was
does not desire to have any group
12,600,000 gross tons and at the concentrated in New York and
dends paid out by these corpo¬
exercise a monopoly on rubber SEC Issues
month end stocks at lower Lake
Report On
rations were $28,000,000 in 1940
Chicago, reducing excess funds in
after the war is
over,
he does
.sports totaled 31,000,000 tons, as
hose cities to low levels.
Ad¬
More Listed Corporations against $15,000,000 in 1939. The
compared with 26,600,000 tons a justed demand deposits continued not think the bill should become
combined assets of the group to¬
The
Securities and
Exchange talled
.year ago I
1 to rise at reporting banks in lead¬ law.
$800,000,000 at the end of
'I think the War Production Commission has made public the
"Value of construction contracts
1940 compared with $767,000,000
ing cities except in New York.
Board, RFC, Rubber Reserve 20th and 21st of a new series of at the end of
awarded, as reported by the F. W.
"Yields on United States Gov¬
1939, while surplus
Co. and other agencies have done
1939-40 industry reports of the
YDodge Corp.,
continued to in¬ ernment Y securities
and
other
increased from $124,000,000 at the
as good a job as could be done on
crease in June and was 57% above
Survey of American Listed Cor¬ end of 1939 to
money
rates have shown little
$150,000,000 at the
'the previous record high month of
rubber,' Mr. Barkley said.
'I porations. Report No. 20 includes end of 1940. ■
change in recent weeks."
r Y
YY' Y
■'Y
:
hink Mr. Nelson made the only three industrial groups engaged
August, 1941.
The sharp rise in
"For the 10 corporations manu¬
decision he could have made on primarily in the manufacture oi
June
reflected a continued
in¬
crease in awards for public pro¬
synthetic rubber.;; Rubber from printing trades machinery, special- facturing metal and glass contain¬
country.
The
now
-
sented
syntheticJ rubber program
is
in
pre¬
by officials chosen for the
new
•
-
"
■
jects, which accounted for about
93% of all contracts let during the
Rubier
Supply Agency
Voted By Congress
month.
Distribution
declined somewhat fur¬
Smaller sales were
ther in June.
reported
department
houses,
mail-order
and
stores
both
by
while sales at variety stores were
maintained at about the May rate.
the
half of
first
sharp seasonal de¬
the customary
cline.
maintained
was
in
large
during June and the first
.volume
:half of July.
Joaded
freight
railroad
of
"Volume
was
The number of cars
level that
below the
prevailed a year ago, however, re¬
flecting a sharp reduction in carloadings in less-than-carload lots
;*as
result of orders by the Co¬
a
which
permissible
ordinator of Transportation
nraised
the
minimum
weights for such loadings and
^thereby effected a fuller utiliza¬
equipment.
tion of existing
which
"Prices
of
most
the middle of June to the
middle
Prices of cotton, wool,
other agricultural com¬
modities, which had declined in
the early part of June, advanced
in this
sufficient
have
"About twenty
additional maxi¬
price schedules were an¬
nounced covering a wide variety
mum
ap¬
un¬
It
of
administration?
good
to
appears
backward.'
be
to
me
;
•
a
1
step
Y
"The
.
override
to
legislation, the indewould have sole
production of syn¬
over
derived from
rubber
obtained
from
The
oroducts.
farm
agency
alco¬
forest
or
would be
appointed
by the President and subject to
Senate confirmation, who would
by
a
have power to
the
to
cilities
for
The
with
the
director
the
duty
4
...
Builders Ask WPB For
1
t
agency
mthority
headed
votes
'
the veto.
terials
period.
interest
.
hol
some
T think it would be most
.
iboth at wholesale and retail con-
and
industry machinery and construc¬
tion, mining and related machin¬
ery, while Report No. 21 includes
synthetic rubber program and ber from alcohol under a program
a larger quantity of farm and
started
by the War Production
forest products as the. base raw Board.
He suggested there is no
material instead of petroleum. '!:
use in creating another agency to
Those Congressmen who voted producey rubber
from / ..alcohol,
for the agency, led by the farm when one such agency, WPB, al¬
bloc, expressed confidence on July ready exists."
"
,Y
26 that, if the President
disap¬
proved the project, they would
;tinued to show little change from
July.
a
ts
oendent
commodities
had 1 been
use
thetic
of
to
industrial
groups
engaged
primarily in the manufacture of
paper and allied products, and the
two
manufacture
containers.
tions
in
of
All
of
the
and
glass
corpora¬
these groups had
ties registered
ties
metal
securi¬
under the Securi¬
Exchange Act of 1934 at Dec.
31, 1940.
The Commission presented the
following data With respect to re¬
port No. 20:
bill, is enacted into law,
"For the printing trades ma¬
proved by the Senate on July 22 Mr. Barkley said, would permit the
by a voice vote, would in effect rubber supply, agency to take over chinery
companies
(numbering
require the government, to revise production of 200,000 tons of rub¬ five) the combined sales amounted
Under the
Commodity Prices
The
dent Roosevelt would veto it.
measure,
traffic
"
advanced
had
tangible stage.
creating a separate wise at this stage of the war ef¬
to
divide' authority
among
agency to direct the production of fort
■synthetic rubber from grain alco¬ those charged with producing this
hol was completed in Congress on essential war commodity,' he said.
demand
unified
authority
Tuly 24 and sent to the White 'We
this proposal
House.
The bill passed the House and
we
are
con¬
on July 24 by a vote of 104 to 18,
sidering undertakes to divide that
Is such a step in the
despite protests of the War De¬ authority.
July depart¬ partment and the War Production
Board and predictions that Presi¬
ment store sales showed less than
Tn
more
Legislation
"Distribution of commodities to
consumers
petroleum
director,
divert critical
construction
ma¬
of fa¬
production plants.
would
of
be
charged
obtaining
ade¬
Housing Allocations!
to
$23,000,000 in 1940
as
$21,000,000 in 1939.. Net profit
after all charges totalled $700,000
1940
against
combined
sales
amounted
to
$505,000,000 in 1940 as com¬
pared with $472,000,000 in 1939.
Net profit after all charges to¬
talled
$41,000,000 in 1940 against
$43,000,000 in 1939, equivalent to
8.2%
and
tively.
9.1%
Total
of sales, respec¬
dividends paid out
by these corporations were $29,000,000 in each of the years. The
combined
assets of the group to¬
$537,000,000 at the end of
compared with $527,000,000
the end of 1939, while surplus
talled
1940
at
decreased from $161,000,000 at the
end of 1939 to $151,000,000 at the
end of 1940."
•
compared
with
in
the
ers
net Joss
Money In Circulation;
after
The
Treasury. Department
in
$400,000 in 1939. Washington has issued the cusT
equivalent to 2.9% and 2.0% of tomary monthly statement show4
sales respectively. Total dividends
ing
the amount
of money
iri
after
paid out by these enterprises were circulation
deducting the
$500,000 in 1940 against $300,000 moneys held in .the United States
all
in
charges
a
of
1939/
these
The combined assets of Treasury and by Federal Reserve
enterprises totalled $52,000,-: banks and agents.
The figures
the end of 1940 compared this time are for June 30,
1942,
000 at
with
$54,000,000 at the end of
Representing the entire home, 1939, while surplus decreased to
building industry, officials of the $18,000,000 at the end of 1940 from
two groups now merging in the $19,000,000 at the end of 1939.
new National Association of Home
"For the special-industry ma¬
Builders in a recommendation to chinery companies (comprising 19
the War Production Board were corporations) the combined sales
said on July 25 to have asked that amounted to $130,000,000 in 1940
WPB make definite allocations of as compared with $136,000,000 in
minimum amounts of critical ma¬ 1939. Net profit after all charges
terials essential to the immediate totalled $17,000,000 in 1940 against
private
construction
of 200.000 $15,000,000 in 1939, equivalent to
war housing units in the principal
13.3% and 10.7% of sales respec¬
and
show that the
culation
at
that
money
date
in cir¬
(including,
of
course,
that
held
in
bank
vaults of member banks'of the
Federal
Reserve
System)
was
$12,382,866,206. as against $12,073,980.785
on
May
31, 1942, and
$9,612,375,332 on June 30. 1941",
and comparing with $5,698
214,612
on
Oct.
31, 1920.
outbreak
is,
on
of
Just before the
the World
War. that
June 30. 1914, the total was
only $3,459,434,174.
Volume
Number 4094
156
THE COMMERCIAL &
"In the
Sees Nation Forced
meantime, however, the
requiring the
Senate passed a bill
Government to make loans
Closer To Inflation
FINANCIAL CHRONICLE
Commission
parity.
The effect of this measure, if it
The Chamber of Commerce of
became a law, would be to force
the State of New York made pub¬
up all crop prices.
In the case
lic on July 23 an interim report
of wheat it would mean a
Press On To
Victory
*
Gov¬
of its Executive Committee
warn¬
ing that the nation is daily being
"forced
closer
inflation
an
cate
and
disastrous
would
which
whole
our
to
toward
closer
be
effort."
war
our
dislo¬
and
economy
Urging rigid enforcement of Pres¬
ident
• Roosevelt's
seven - point
anti-inflation program
and calling
upon the President and Congress
to
promptly take such steps as
are necessary to this end, a reso¬
lution
accompanying the report
declared:
"Resolved, That it is our con¬
sidered judgment that any citizen
or
group whose demands or ac¬
contribute toward
tions
tion
to
is rendering
now
is
taken
at
Frederick
E.
Easier, President
Chamber, regarded the in¬
the
flation situation
special
as
so
to discuss
critical that
of the
meeting
tive Committee
22
make
outlined by
President."
the
a
to
once
effective the program
of
ac¬
Execu¬
held on July
was
The members of
it.
bushel
a
the
farmer.
Spalding
clude
Chairman, in¬
country's lead¬
is
of the
some
ing bankers, insurance executives
and
reported
that
while
the
three
the
months
undo
only
rived
had
elapsed since the President's pro¬
gram was announced, there was
imminent danger of inflation con¬
trols getting
out of hand.
The
report said:
/.,.// •
,
"Recent
have
events
set
infla¬
price to
bill
has
been
the
benefits
limited
of
all
In the
crops.
six
it would amount to about 38 cents
a
bushel
the
over
average
to the farmer."
price
•"
,
,;
.
In
conclusion the report stated:
"While
the
Government
has
taken
firm
a
stand
in
regard to
prices except those of farm prod¬
ucts, the holding down of prices
at the
time that
same
chasing
is
power
cumulate
only
excess
allowed
pur¬
to
the
speeds
ac¬
day
<
when scarcities of goods must oc¬
cur.
As ceilings
are
fixed for
prices
of
must be
order
civilian
goods,
ceilings for
to
keep
there
wages too in
the
anti-inflation
under control."
program
in
"Little
the
granted
to
Steel"
case
which
44 cents-a-day increase
a
157,000 workers to compensate
them
for
advance
15%
a
in
the
cost of
living between January 1,
1941, and May 1, 1942, the report
■said:-.
iVYSE Revises Minimum
the Board
as
has
adopted can be a stabilizing
factor.
Its effect is bound to be
inflationary./, Broadly inter¬
preted, this means that organized
very
the United
in
workers
States
are
entitled
to greatly increased in¬
while the incomes of the
of
the
population
remain
comes,
rest
static
or
Gapitel Requirements
advised
were
July
on
22
that the minimum capital re¬
quirements of the Exchange have
been
national
a
of
part
effective
be
would
the
in
proposed new tax bill im¬
higher taxes, but they fall
poses
on
on
most
that
,
comes
industries
war
touched."
/
the'1 increased
of
.
the
are
only
in
slightly
further said:
of
farm
products,
the limiting of the Office of Price
Administration to price ceilings
of 110% of parity seriously im¬
'
case
fect
of
the
plained in
change, it was ex¬
circular sent out by
a
C.
Edward
Gray, Director of the
Department of Member Firms, "is
broaden
:o
basis
the
to
treat
basis
than
70%
their
of
people
many
will
to other cities
"may
spell tragedy for the city" in that
it
would1 be
real
estate
disastrous
market.
"For
to
Mr.
also states in part: \n,-
the
Magnus
■
••
businessmen
years
have
appealed to public officials, both
and State, asking for
municipal
relief
from
their
burdens.
unnecessary
appeals j fell
created
who
warned
were
"Real estate
saddled with
was
the
carry
a
on
of an expanding muni¬
government.
Occupancy
cost
cipal
taxes
imposed
were
for
housing.
We spent for mag¬
nificent parks and boulevards, and
fine public buildings, and an all
record
Yet
high of
we
public employees.
facing possible ruin."
are
While
observing that war con¬
ditions
only brought the / city's
basic
problems to a head, Mr.
Magnus calls for direction of at¬
value in
In
computing firm capital."
advices Mr. Gray further
his
/;./ ///. " :/;./'.///
/.,/
says: ,>
paragraph of Footnote
page E-238 of the Directory
on
Guide has
and
been
taxes
amended by
establish
to
in
be
may
turn,
and
some
of
New
give
these
attracted
jobs
compelled to
We
the
of
obligations or
preferred stock which the issuer
has officially declared will be re¬
case
within
deemed
market value
30
or
full
the
days,
the cash redemp¬
value, whichever
be included."
is
lower,
the
case
of securities
com¬
ing within the scope of any of the
following clauses the Department
Firms
Member
written
sion
to treat such securities
"
obligations
(i)
cash
are
within
to
90
or
on
a
mar¬
preferred
be redeemed
days but not
/•
within 30 days;
:
:/
*
"(ii)
Interest
bearing
obliga¬
tions (other than obligations hav¬
ing
a
ture)
exchange fea¬
and serial equipment trust
conversion
certificates
and
who
the
not
Federal
lack
our
foresight and foolish mistakes.
get business here and
it.
maintain
Let
for'New
restore
endeavor
us
York
,
to
its
right¬
ful place as the 'World's Greatest
Workshop.'
Let us get a little
the
to
reliable
more
and
principles that good busi¬
means
jobs, that jobs mean
proven
ness
payrolls, and payrolls
perity for
our
mean
pros¬
citizens."
—rnrnmr.ttrnim
or
covered
by
certificates
which
ABA Issues Bulletin On
the
first
are
to
be
War Damage Insurance
/
Coinsurance
consider
will
application for permis¬
stocks which
fdr
ask
to
...
"In
a
re¬
"Let's
closer
second
The
of
to
should
be
Government to subsidize
"In
City,
half-million
tence:
/'v.-■'•/•-/. /
en¬
employment
need
now
York
the addition of the following sen¬
.'
if
lowered,
are
couragement is offered to business
business
The first
(a)
"If
War
ance
provisions
of
the
Damage Corporation insur¬
policy as they affect the in¬
of bank property, and the
mortgage:; investments of banks,
are among the war damage insur¬
ance
questions discussed in the
surance
issue of the "Protective Bulletin"
life
which
all
we
nation
"No
Neither
will
victory
crave
find this
nor
easy.
form of
any
pcst-war settlement will of itself
create
to
millennium.
a
be
offered
eliminate
wastes;
to
tional
make
and
-
we
opportunity
available
of
means
tional
Rather,
an
vast/ -obstacles
>
and
addi¬
advancing
international
na¬
stand¬
ards;
to
create
new
facilities
whereby the natural resources of
-
the earth and the products of hu¬
man hands and brains can be more
effectively utilized for the
promo¬
agency
which
can—by
peace
welfare."
Pointing out that this country
fighting "because we have been
attacked," Mr.- Hull stated that
"we
are
forced to fight because
ignored the simple but funda-i
among nations in the future." The
we
creation
mental fact that the
insure
of
not be
in
armaments
to
such
that the rule of law
manner
a
can¬
and
burden
be reduced
Mr.
Hull
of
to
minimum."
a
further
"international
armaments
called
court
of
settlement of
over
such
for
disputes by
sur¬
nations
aggressor
time
an
justice''
and for close
means
veillance
-
they demon¬
strate "their willingness and abil¬
ity to live at peace with other
nations."
He
.
as
■;/,
....
added
extreme
of
be
na¬
excluded
economic
of limita¬
activity,
the
Secretary declared:
different kinds must be
In
trade
from
its
must
natural
be
tional currencies
stable
rates
of
system
once
for
of
is
them
markets
created
where
the
world's
there
resources
tivity—move
and for
equitable
ac¬
terms
from financially stronger to finan¬
cially
weaker
be
may
need
countries.
for
There
,
special
some
that
"there
men
any
that
way
is
to
them, against those who
destroy it for all."
would
Mr.
Hull
also
emphasized that
all peoples "who are prepared and
willing to accept the responsibili¬
ties of liberty are entitled to its
enjoyment."
Secretary Hull's address, which
also short-waved throughout
the world, had the endorsement
was
of President
Roosevelt
said, surveyed
its delivery.
the
who, it is
talk
prior ^to
June Lend-Lease Aid
a
are
of economic
on
for
so
by human need;
stabilization
added
way
preservation, in
at
for
machinery
through
which
capital may—for the development
the
He
surer
freely
for
of
tyrants
new
West, there is
or
and for
nations to show themselves worthy
of liberty than to fight for its
At New
duced and ways may be found of
moving
no
be pro¬
can
na¬
na¬
relations
devised that materials
plans of the
freedom
countries.
re¬
other
exchange;
financial
re¬
hope for anyone,"
citing conditions in Axis occupied
Equally
more
each
appeal to the neutral
of the East and the
no
economic
avoided.
plain is the need for making
exchangeable
an
"in the
duced, and practices which im¬
pose injuries on others and divert
course
right
international
tions, the Secretary warned that;
"Excessive trade barriers of the
many
of
sponsibilities."
in
coopera¬
price of peace
preservation of
acceptance
open
that
the
of
and freedom among nations is the
successfully challenged and
the
may
mechanisms
he added/must in¬
"eventual
adjustment
of
national
that
such
peace,
clude
until
backbreaking burden to
conquest
force, if necessary—keep the
peaceful
Those
of
seek.
is
be
for the
subjected to abuse.
ruthless
international
• some
of taxes, and because of
high labor
and
that
must
deaf
on
logical road to the higher stand-,
ards
tion of human
One industry after another
Was forced out of the city because
market
the subject of a primary distribu¬
deadlock of tion but for which a published
two months, followed the lead of rating is not yet available."
the Senate and agreed to the re¬
Details regarding the informa¬
lease for livestock feeding of 125 tion required to be submitted to
million bushels of Government- the Department of Member Firms
owned surplus wheat at 85% of when applying for special capital
the parity price of corn, or at treatment may be found on page
about 83 cents per bushel.
E-247 of the Directory and Guide.
on
move
which tention to the "real causes that
request permission underlie our economic plight" and
securities upon a better adds:
:
y'/'
ally known statistical services, or
such interest bearing obligations
in the House, after a
that
have to
framework of effective coopera¬
tion with others is the sound and
Discussing the post-war world
the Secretary said that "it is plain
upon
hold down price inflation. Earlier
this
month
the
Administration
limited victory in its fight
inflation when the farm bloc
gestion
Mr.-Magnus
members may
four ratings by any of the nation¬
a
that the Government's sug¬
destroy the world¬
of
enslavement."
on
pairs the efforts of that office to
won
industries."
warns
forces
and brutal
tions
in-
'
/
The report
"In
workers
wide
Hull
united de¬
a
On this question
more
of millions of
over-crowding in real estate
markets, while the Government
other
now
Secretary
tion.
heavily than better basis than 70% of the
consumption with the result ket value thereof:
production
freedom,
asserted that there is
international
of
"The
human
termination "to
threatening to penalize employ¬
ers for attracting
employees from
and
are
engaged in a
"life
and
death
struggle" for the preservation of
when other cities face labor short¬
is
States
must
("):
added:
port
United
the other United Nations
favor
purchasing
excess
power, as would increased taxes
and compulsory saving.
The re¬
the
e^
ment of nations and individuals in
shall
victory."
tionalism
paragraph of Foot¬
note
(a) has been amended by
the substitution of the following
sales tax
for the present clauses
(i) and
removing
retail
Saying
shall press
we
unemployed.
obligations.or preferred stock
called
for
redemption
and
for
is generating
inflation is the huge public spend¬
ing of borrowed money."
It said
that
York
City and
staggering record
"a
to the final
They
own
with
complete
selfContinuous self-develop¬
respect.
and
uprece-
history," but "how¬
long the road
ever
"to
substance
extent
an
for
may
power/which
New
and
to
people
Sales taxes yielded money for the
tion
y/v\: '
of
time
itself
the
revised, effective
imme¬
diately, to make special provision
r/
—
400,000 unemployed
"profoundly shocked" busi¬
require
dented in past
Mayor F. H. La
of
constitutes
Members of the New York Stock
Exchange
report stated that "the mo¬
The
tive
decline."
to
will
war
through their
so
and
a
situation,
broadcast from Washington, Sec¬
retary of State Cordell Hull, on
July 23, declared that winning the
on
Guardia, Mr Magnus said that the
costs.
;;,■;//;'r./\;;v///
"No such standard
letter
a
Trade.
ears.
.
of the National War Labor Board
In
But
forces in motion which securities which have a high rat¬
seriously threaten the stability of ing but which are not the subject
of primary distributions.
The ef¬
both these indexes and the under¬
Referring to the recent decision
Board of
ages,
June
tionary
mining of the whole anti-inflation
program."
-V: ;;
York
address
international
sacrifice
nessmen
of wheat
case
the
on
life
security of the city, was
on
July 18 by Percy C.
Magnus, President of the New
below-parity price, but
has
the effect of forcing
market prices for the
major
nation-wide radio
a
and
estimate
a
In
a
urged
de¬
sales
of
caused by the present emergency,
but for the future business growth
have
would
up
the
all
from
wheat at
general
which
The
cents
appointment
special
commission
of
New
York
City
businessmen and citizens to plan a
basic program, not only to meet
the
unemployment situation
"If enacted, this bill would not
prices and the cost of
had showed little change
living
38
June
,
of
level
in
The committee
industrialists.
about
the
to have the active support of the
Secretary of Agriculture.
the committee of which H. Boardman
of
over
approved by the House Agricul¬
tural Committee and is reported
material aid
Drastic steps
imperative.
be
must
infla¬
Immediate
enemies.
our
tion
an
loan
ernment
The
will do
forts
Aid NY Businessmen
six major crops at 100% of
been able to do in the past.
Hull Vows We Shall
Urged To
the
on
377
trade
arrangement and for inter¬
agreements
to
handle
and to
areas."
Secretary Hull further asserted:
June
the
to
aid
furnished
in
United
Nations, and
other countries eligible under the
Lend-Lease
Act,
amounted
to
$708,000,000,
port to
pared
Jr.,
according
a
re¬
Roosevelt pre¬
Edward R. Stettinius,
by
Lend-Lease
matter
to
President
The official
Administrator.
announcement in
stated
that
the
the
report
showed:
"1.
national
difficult surplus problems
meet situations in special
Monthly High
Lend-lease
Amount
furnished
in
of
lend-lease
June
to
the
aid
United
Nations, and other countries eli¬
gible under the Lend-Lease Act,
was $708,000,000.
This is the high¬
"Building for the future in the
est monthly total in the 16 months
economic sphere thus means that
of lend-lease, operations.
Aid in
each nation must give substance
and reality to programs of social May was $662,000,000.
"2. Total lend-lease aid from
and economic progress
by aug¬
menting production and using the the beginning of the program,
greater output for the increase of March 11, 1941, to June 30, 1942,
Of this total
general welfare, but not/permit¬ was $5,205,000,000.
ting it to be diverted or checked 59% was goods transferred, 24%*
by special interests, private «or articles in process/and 17% vari¬
It also means that; each ous services performed here and
public.
'
nation must play its full part in a abroad."
system of world relations designed
Administrator Stettinius arrived
to facilitate the production and in London on
July 16 for a study
movement of goods in response to of the
workings of the lend-lease
human needs.
;y./ ■'."/'//
program in Britain.
He is ex¬
-
of
the
•
Insurance
and
Protective
Department
of
the
American
Bankers
Association, mailed to
ABA members on July 23.'
y"
/
Using the question and
method, the "Protective Bulletin"
raises and
of
answers
nine questions
special interest to banks.
deal
These
with the insurance of bank-
owned
buildings, other buildings
owned
or
held
in
trust
.
estates,
nations rea¬ pected to remain several weeks.
assured, : with
political
"With peace among
answer
sonably
established, with
removed, a
stability
nomic
shackles
fund of
resources
other
collateral,
money
and
se¬
curities, and the responsibility of
banks
as
surance
depositaries for fire in¬
companies acting as fidu¬
vast
will be released
in
each nation to meet the needs
of
progress,
to make possible for
all of its citizens
mortgaged property, chattels and
eco¬
toward
invigorate
of
their
enterprise.
forward in the
own
ciary agents of the War Damage
nues
Corporation.
completely
of
and
of the world will
able to go
of
advancement
the constructive
initiative
nations
an
higher living standards, to
than
manner
betterment
they
The
then be
choosing in all
human
force
ever
ave¬
more
have
U. S. Gives Uruguay Credit
/
The extension of
credit
a $12,000,000
Uruguay for the con¬
a hydro-electric
plant
Negra Dam, about 150
to
struction of
at
Rio
miles
from
nounced
Montevideo,
July
was
an¬
22
by Warren
Lee Pierson, President of the Ex¬
on
port-Import Bank of Washington.
Contract
for
the
credit
was
signed at the Export-Import Bank
by Mr. Pierson and
Juan
Carlos
Blanco, Uruguayan Ambassador.
THE COMMERCIAL
378
"I
example of special tax ad¬
other
that
believe
not
do
any,
vantage to many married couples patriotic American needs the 'in¬
having larger than ordinary in¬ centive' of profits to produce for
Millions of our
comes.
In families in which the war at this time.
income
is earned partly by the people are'willing to pay "new
husband;and partly by the wife and genuinely' burdensome taxes,
(Continued; from page 369)
of tax-free
interest from State and in families in which income to buy War Bonds without Stint,
and
municipal -securities.
Then earning property can be divided and to do without many of /the
and
even
exemption - of ; interest on State between husband and wife, the accustomed /luxuries
Their
and local securities is a serious tax on the i family income * is less conveniences of daily life.
breach in our system of taxing than where the husband or wife only 'incentive' is their firm ren
The solve Ho -win this war and build
according to ability to pay. ^ For receives the whole income.
example, in the case of one indi¬ family is the t true economic unit, a better future.
vidual, out of -a total reported in¬ and it is. unfair for the amount of
"Experience has shown, how¬
come
of approximately $975,000, tax on the'family to vary depend¬ ever, that 'When 'excess 'profits
over $668,000 came from State and
ing upon who earns the income taxes are too high they may re¬
local securities.
If the Bill as it or upon who in the family has sult in extravagance and waste in
It -is
passed Hhe
House should be¬ income producing property. Abil¬ the conduct of business.
come
law, this individual would ity to pay taxes must be judged vitally important that we stimu-*
in terms of family incomes and late business to produce for war
pay only $243,000; if, on the other
not the incomes of members of
Committee
would
and remove
this pre-Pearl Harbor' exemption,
he would pay $832,000.
Let me
put the'illustration another way,
If this exemption is retained he
would
have
$732,000 .left <after
taxes;'if it is abolished, he would
have $143,000 left.
"The glaring unfairness of this
exemption may be seen in another
way. 'Under the tax rates ■ in the
House'Bill, a person with a surtax
income
of $100,000 from other
hand,
your
v
tutes
which our
tax system has been based.
"The
adoption of
mandatory
joint returns -would also elim¬
after
taxes
•
!for
-special
of
this
all
existence
privilege
'holders
of
the GovJ
people of the
tax-free securities costs •
and 'the
ernment
United
"States, under the House
tax,'jabout $200 million d
rates of
year;
v
our
and
and it will cost still more as
tempt
taxes
wartime
more.
more
into 'the
investments
shift jtheir
pre¬
our
and- ruthless
to
jis
requires that we abolish 'these
special tax shelters, and do it now.
1 h-igh 1 y >privileged
"Another
group/having/large amounts 'Of
income 'exempt from income tax
are
the owners of1 oil wells ;and
mines, i I refer to those* provisions
of" the law dealing with percentage
a
serious breach t in .our;
Of
to
pay.
according
taxation
"I rcannot: believe ■.that
the
gas
'
wells
-/;t
deduct ifrom
to
their income 27 Vi% of' their gross
year,
two-years, or "the
necessary
but for
an
example,
a
leading oil
period
time Hhe
•
case
local
State 'and
percentage
securities,
taxa¬
is¬
elimination
future
depletion.
the sur¬
fighting
are
we
advices
we
Taft
in the headlines which is the
more
also quote:
(Rep.,
day, written by his publicity
saying he was going to give
the:people something, would be
inflation.'
some
inter¬
Vandenburg
"Senator
man,
declare: r! Tf ;inflation
the responsibility will rest looked upon as a fool and much
its failure mockery would be made of him.
rupted Ho
comes,
the Treasury ifor
with
"You
will
that
recall
in
his
it
Taft "made
by -pulling
duee
cannot be won."
in
$7,600s000,000
additional
than
rather
-
bill
-Here
over
recently,
is/
he
afraid that he might have to take
additional
seek
to
taking
about
something.
the
over
taxes from
present sources.
"The two Republican Senators
country's
locomotives.
Before
that, he didn't know how
many
people he would be pre-,
also declared opposition not only
pared to / let ride on the trains.
to
increased normal and surtax Joe'has been
taking over a lot of
rates for corporations but also to buses and
pulling up a lot of rails,
the 45% rate in the House'Bill.
too, while nobody paid any atten¬
"Considerable interest was also tion to him.
'//
manifested
enforced
Taft
.
the Senators for
plans.
Senator
by
'tables
brackets
come
the
is
increased individual income taxes
the
under
!
'
'
4
:
the
to abandon. The ICC,
Joe, in his other right,
head, ruled that the road
could abandon this line.
Treasury's
*
line which it had
100-mile
a
of which
the
which
from
had
to
long wanted
in¬
Treasury
the
showing
•
Out in Nebraska, the C. & N. W.
savings
requested
prepare
The Ne¬
Commission / in¬
Utilities
braska
///H/.
tervened and the matter has been
subject of individual
in litigation for sometime.
Now,
Treasury officials
Joe comes along in his new can
said they still favored/their pro¬
pacity, and says to hell with the
gram under which individual in¬
red tape of court procedure, and
come
tax/ exemptions would be
the
"On
income
taxes,
for married persons,
persons and
each dependent < child.
$1,200
for
for
Tax
Advisor
he
$300
takes
up
$600
unmarried
"Treasury
excess
House
the sometime,
during
clear
hearing that they favored a sales
tax Ho
raise additional revenue
Of
over
our
takes
.,/ ,/-',
/
these are war time
and we've all got to put
course,
measures,
Ran¬
dolph Paul disclosed to the Sena¬
tors that the Treasury is presently
line and
the
the steel.
shoulders to the wheel to de¬
Hitler (and secondarily and
also, Hirohito), but the fact re¬
engaged in plans for debt relief
mains
that
Joe
has
nourished
for corporations but that no for¬
these ambitions for a long time.
mula
had
/been
worked
out
When the New Deal first came in
which was / free 'from inequities.
Paul
Mr.
agreed with
feat
and
Chairman
all
NRA
George * of the Senate Committee
that the entire problem of debt
would
could
one
and
hear
AAA,. Joe
take-
splurge.
a
of
was
thought he
relief -for
He began
-
'
company
oil/properties
million. ;At
was examined
which had cost it $3
the
of
and
corporations could be going around the country saying
what I believed, and still'believe,
that he "doubted"—and he "hoped"
on corporations, from 45% to 40%
simplified by a post-war credit
was' the1 very least that the Ameri¬
it would not be necessary for the
was rejected by the House.
plan.
■,///■• : ./;/ • ./V
In his
can
Government to take over the rail¬
people > could afford to pro¬
strictures as to the House excess
•"It was also indicated during
vide."
roads. Joe made speeches every
•/// '; ••'./ ■/"■
profits provisions Secretary Mor¬
the 4 hearings that there may be
Mr. Morgenthau went on to say
night Ho this effect. Well, there
some -modification ? of Hhe Housegenthau said:
was
that "it is only against Hhe * back¬
unquestionably a . revolution
approved provision which would
Excess Profits Tax
ground of our war -expenditures require that corporations on a fis¬ on in those days, but finally some
to -return investment,
unlimited period. For
owned-a1 number of
6,271.2
outstanding
on
\ "This,"
he added, 'is highly in¬ of us on the Washington -scene
flationary
and
would
nullify know. Things run in grooves and
here /who
everything
Price Administrator any -fellow around
Henderson has done Ho ; prevent would come out with a statement
combined normal and surtax rate
receipts from: such» wells—not i for
one
interest
Ohio) Washington measure of success.,
Ever since he got this publicity
pointed out that even if banks are
required to purchase only $24,000,- set-up, Joe has been issuing '.'dire
and
threatening
to
000,000 of Federal securities in the warnings"
over" \ something
almost
fiscal year 1943, their holdings of "take
these securities would be doubled. daily. That's good going,, as those
annual revenue from taxes.
On
profits provisions of
May *6th 1 wrote -'a letter Ho the
likewise
were
Chairman
of -the -Committee on
critized by Mr.
Morgenthau; as
Ways arid Means- recommending
indicated in our -issue of July 23
a reduction in personal income tax
(page 281), the House accepted
exemptions to produce approxi¬
on
July 20 'the proposal of its
mately $1,100,000,000 more reve-;
Ways and Means-Committee to in¬
nue.
These two recommendations
crease the excess profits tax from
together involved a t tax /program
87y2 % to 90%, but the committee's
of $8,700,000,000 of additional rev¬
further ..proposal
to
lower the
enue. These amounts represented
of America would know-r
ingly -sanction a ?provision of rthe
law which allows owners < of <oil
i
war
The
payers
and
of
/
"Senator
At such a time ditional taxes for the-fiscal year,
any -special /privilege
for - any 1943/ exclusive of Social Security
group not only deprives the Treas¬ taxes, of $7,900,000,000. " On March
ury
of j revenue
that
is badly 3rd, I appeared before the-Com¬
needed Tor the war effort, ? but it mittee on Ways and Means of the
hinders the war effort by under¬ House and presented recommen¬
dations for a tax program " to pro-/
mining the morale without which
the tax¬
•
are
we
preserve."
merce"
toward vvictory.
ability
',
■
of
sues
'
J For;these; reasons
economic life,
in-its most critical1 phase,
only
system the
to
.....v..
returns,
joint
"One tax
that would be im¬ to develop a sound borrowing pro¬
Joe, as the head of the Trans¬
$2,152, or over 20%
The'discrimination is even posed by "the bill before you di-, gram.'' '/•//;// /Hn;/ './/a//'// / portation set-up, has been utter¬
"Both Senators Vandenburg and ing, through his publicity man, for
rectly threatens the stability of
pronounced with larger in¬
now
and
depletion
Percentage
depletion.
is
that
all
together as
of January 5th, will come
a united people can we - make the Budget / Message
decency effort 5 that will turn the tide President Roosevelt asked for ad¬ program.
foe, common
tion
^Mandatory
loss.
^(Continued from page 369)
;
willing to make any sacrifice,
people are, but we look to our,
According to advices to the New
leadership,
our
omniscient
York
"Journal
of
Commerce"
leadership, to tell us what Ho do.
from its 'Washington - bureau 'July
Then, why should the question of
23, it was developed by the testi¬
whether we should let the Army
mony of' the Treasury staff and
have Ginsburg and thereupon in¬
questions by the Senators on July
cur
inflation, be put up to us?
23 that of the' total borrowing of
Let the leadership determine it, a
$53,000,000,000 which would be
purposes as economically and ef¬
But
we've gotten away from.
ficiently as -possible,
if for no necessary for the Federal Govern¬ Joe. You are going to hear much
$12,000,000,000
could be
other reason than to avoid a waste ment,
of his making good in the "inters
raised from sales of war savings
of war materials and labor and to
esting" work which is being per¬
hold down the cost of the war to bonds,'4$2,000,000,000 from insur¬
formed in Washington these days.
ance
companies,
$1,000,000,000
the /Government.
Moreover,
a'
Joe was given a publicity set-up
from
savings banks, and about
poSt-war credit to -industry will
sometime ago, and ever since then
$10,000,000,000 from corporations.
help'toward tthe rebuilding of our
'From
the
"Journal
of Com¬ he has been appearing more and
of
vival
gency /
straining, our energies t to
the Utmost' to /defeat "a 'powerful
t7.1
816.8
Special" privileges!:..• *'-601.6
8,739.9
tNet
.
2,589.2 /'
309.0
1,253
gifts,..,
Total
!
we
shall be endangering
we
and
Excises
To the extent that we fail,
tions.
comes.
'-securities.
we.«are
'Estates
shall be protecting
future economic soundness of
country and our free institu¬
the
$2,872.3
$3,228.0
...k
Corporation'income.3,347.7
-during this
fiscal year
about $53,000,000,000.
To the ex¬
tent that we enlist our current
income in taxes to cut down this
borrowing,
House Bill
..Treasury Program
..
'Individual income
the
to borrow from
public
This is the tax on freight
In this
national 'emer¬ prices.
and express which would add to
how can we complacently
"How can we expect'to Obtain
the cost'of producing and supply¬
permit the citizens of these com¬
an all-out war effort'from all-our
munity (property /States a more ing practically every commodity
people if we go on permitting a favorable tax. status than those of and service. In great numbers of
cases the added cost would make
group of individuals and corpora¬ the rest of the country? V
it
tions/ owning v$14 ? billionvof - State
impossible for businesses Ho
"Tnese
examples
of
special
and local securities to go tax'free
continue
to > operate : under
the
privileges ; are 'i intolerable ;at: a
on the income from .these ^securi¬
price ceilings which have been
time like this, when we are im-;
ties?
'We are asking our)young
imposed and the breaches in the
posing 'heavy taxes on persons
men to give their /livesHor their
with small'incomes and there iis price ceilings which would there¬
by be caused would' threaten the
country, and at the .same 'time
pressure for limiting wages and
whole price structure."
we
are
allowing many wealthy
farm prices.
The country > is in
At the start of his statement be¬
persons, safe behind the J lines, Ho
greater danger today than ever
fore the Senate Committee, Mr.
escape their fair share of the war's before in its
history.
The war
financial burden. At a time when
Morgenthau said:
/ :.
/a
hide-out' of1 tax ' exempt
Source:
to become law it would
were
necessary
tax would be
more
wealthy individuals to
more
upon
be
Mar¬ we have recommended a' 90% ex4
ried couples living in the eight cess/profits 'tax coupled with a
so-called
'community
property 10% crediti for:• return to the cor¬
States
receive
tax
.advantages poration after the war. The credit
which are in no way commen¬ should, of course,'be restricted*in
surate
with
any
special
rela¬ such a manner that it would be
tionship that i may exist between used for ; the direct employment
husbands
and
wives
in /those of labor, the conversion of plant
States. 'For example,'take a fam¬ to peacetime business or Tor ether,
ily in which the husband has a uses ipromoting economic adjust¬
salary of $10,000 after deductions. ment and growth."
//a//'.//
If'the family has its residence in,
In taking exception to the tax
say,
California, and filed com¬ on freight and' express, Secretary
munity property returns,'the'fam¬ Morgenthau said:
/
1
ily tax would be $1,788, while if
Tax on Freight and Express
the family lives in, say, Iowa, the
'taxable security 1 yielding*20%,
The
-
Bill
vailing under existing law.
'from
as
principle
another discrimination
inate
3% tax ex¬
a
funda¬
the
of
violation
a
mental
receives as much
security
return
net
a
holds
who
sources
empt
the
failure to require
joint income tax returns consti¬
The
family.
adopt my suggestion
Thursday, July 30, 1942
& FINANCIAL CHRONICLE
"Another
percentage depletion of $3.0 mil¬
lion had already been allowed and
the
hindrance
similar
prosecution
-
of this
to
'peopled
war' is the existence of excessive
that
we can
enue?
tell whether the Rev¬
Bill before you
purpose.
We
are
will fulfill its
now
cal ^year
-spending
of the
Washington correspondents
why Joe kept Halking
this way./There had been 110 sug¬
basis must meet 1942 in¬
tax rates on the /portion
come
their income which; is earned
wondered
of
dur¬
three- profits in wartime. There is no
$150,000,000
a
day,
or
almost ing the 1942 calendar year. /
gestion that the railroads .were to
/ •;
easier'way to stir-up the* righteous $5,000,000,000 a month. In the-fis¬
be taken over. /Inasmuch asHhe
/'In response Ho*'.inquiries from
"Certainly
we
cannot justify anger < of -the -American people cal year that is beginning we ex¬
railroads were not in controversy,
this exemption on the ground that than to let them hear constantly pect to spend the almost incon¬ Senators,/ Colin F. Stam,h counsel as were the bankers and
others*
for * the Joint - Committee on Tax¬
it -encourages
exploration
and of excessive -wartime i prof its ■ that ceivable4 sum of $77,000,000,000 to
the question naturally arose as to
ation, ; said that the House/proare not being recovered by ade¬
win this war for human freedom."
drilling for oil.
There. is grave
whether Joe wasn't trying to sug-l
Vision/was "adopted anorder Ho
doubt that it has a substantial ef¬ quate-taxation.
I have said 're¬ Continuing he said:
gest the very thing he kept saying
prevent * corporations on ;-a fiscal
fect on oil discovery.
/It would peatedly that we are determined
"There can be no compromise
he hopes there would be no need
-year basis -from obtaining an ad¬
have cost the Federal Government to take the profit out of war, and with these war expenditures. We
of doing.
vantage-over corporations on a
Treasury's recommendations would not reduce them if we
about one-rthird as much to have the
/Some- of the correspondents be¬
calendar year basis.'!,
have 'been -framed -with -this de- could.
Gur whole effort must be
paid all the cost-of every wild-cat
'Washington advices to the "Wall gan writing to this effect and the
well that was drilled in 1941 as ! termination in mind.
to translate our spending as fast
the
properties -still
fourths of
had
the oil left.
.
\
.
,
,
-
tion and
percentage deple¬ !
the-associated/intangible
drilling
expenses.
to have allowed
"Am effective
excess
much
•
'
rates
would
be
income
war.
of
about
our
It also
profits tax and as effectively as possible in
produce the actual production and use - of
If our ex¬
in time of our war materials.
than
revenue
reassures
the4
masses
I
ers
farmers and factory work-
that industry
is not being re¬
Street
that
Journal" of "July 23 stated
Mr.
Morgenthau
committee the following
gave
the
compari¬
reach $77,- son of the tax increases proposed
receipts in reve¬ by Hhe Treasury and those carried
penditures
this year
000,000,000,
our
the people
must bear
privilege of filing separate warded unduly for its part in the some reasonable relationship to
that colossal figure.
If the House
tax returns furnishes an¬ winning of the war.
$200 million.
"The
more
The -annual badly needed
cost of these allowances underHhe
proposed
does
nue
from
in
the
which
House-approved <bill on
the Finance "Committee is
basing its hearings:
result
that
was
speeches
But
he's
be
hopes
out
town
might.
Joe
and
to do
again, men—won't
have
to
us
walk from town to
city
Well,
the
quit making
to his job:
there
-he
make all of
Joe
retired
and
to
you
city—but
can
rely
right thing.
he
upon
iVolume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4094
156
Moody's Bond Prices And Bond Yield Averages
?•
Moody's
computed
bond
prices
and
bond yield
averages
given in the following tables:
"
MOODY'S
(Based
V. S.
1942—
are
Avge,
Govt.
Daily
12
July 28
27
:
Aaa
rate *
118.16
_
Corporate by Ratings •
Corpo¬
Bonds
_■
■
P. V.
Indus
91.77
95.92
111.44
114.27
newer
91.77
111.44
114.27
AA-4
95.92
91.77
95.92
111.62
114.27
91.77
95.92
111.62
114.08
this will be the lowest of the
118.23
106.74
116.41
113.31
108.16
91.77
95.92
111.62
114.27
series, marking the next classifi¬
cation
106.74
116.41
113.31
108.16
91.62
95.77
111.62
114.27
106.74
116.41
113.12
108.16
91.77
95.77
111.44
114.27
118.22
106.74
116.41
113.12
108.16
91.62
95.77
111.44
114.27
118.22
106.74
116.41
113.12
107.98
91.62
95.77
111.44
114.27
118.22
106.74-
116.41
113.12
107.98
91.62
95.77
111.44
114.27
118.27
106.74
116.41
113.12
107.98
91.77
95.77
111.44
114.27
118.22
106.74
116.41
113.12
107.98
.91.62
95.77
111.44
114.27
'
118.19
-j—
106.74
116.41
118.28
14
113.31
107.98
91.62
95.77
111.44
114.27
114.27
106.74
116.41
113.31
107.98
91.62
95.77
111.44
11
118.26
106.74
116.41
113.50
107.98
91.62
95.77
111.25
114.27
io
118.26
106.74
116.41
113.31
107.80
91.62
95.77
111.25
114.08
13
•
118.31
106.74
116.41
113.12
107.98
91.62
95.77
111.44
114.08
118.25
106.56
116.41
113.31
107.80
91.48
95.77
111.25
114.08
118.22
106.56
116.41
113.12
107.80
-91.77
95.77
111.25
114.08
118.05
106.56
116.22
113.12
118.09
106.56
116.22
2
118.12
106.56
l
118.18
106.39
IZZIII
8
7
—
o
4
Exchange
—
3
■
—
—
-
;
113.89
111.25
113.89
107.98
91.19
95.62
111.07
114.08
107.80
91.19
95.62
111.07
113.89
116.41
113.12
116.41
112.93
115.82
112.93
107.27
91.34
95.77
110,70
113.31
further to basic output.
116.02
112.93
107.44
91.77
96.07
110.70
113.70
are
than
106.56
116.02
112.93
107.44
91.91
96.07
110.70
113.50
106.74
116.02
113.31
107.62
92.06
96.54
110.88
113.70
106.74
116.22
113.12
107.62
92.20
96.69
110.70
113.70
106.56
116.22
113.12
107.44
92.06
96.69
110.70
113.70
106.74
116.22
113.12
107.62
92.06
96.69
110.70
113.70
113.70
107.62
:
92.20
96.85
110.88
113.89
107.62
i 92.35
97.16
110.70
114.08
113.70
107.62
92.20
97,00
110.52
114.08
116.41
106.74
116.22
113.50
107.62
91.91
97.00
110.34
113.50
slowed
115.63
113.31
107.62
91.62
96.85
110.15
113.31
areas.
106.92
116.22
113.70
107.80
92.06
;97.31
110.52
113.70
116.61
114.08
108.16
92.50
97.47
111.62
114.27
been
106.04
115.43
112.75
107.09
90.63
95.32
109.60
112.75
120.05
108.52
118.60
116.02
109.60
92.50
97.78
112.56
116.4]
115.89
105.52
116.22
112.00
106.04
89.23
95.62
109.42
111.62
107.80
103.13
on
28
3.09
2.94
4.01
3.09
2.94
3.08
2.94
and
2.99
2.99
3.28
4.29
4.01
3.08
2.95
3.27
4.29
4.01
3.08
2.94
3.27
4.30
4.02
3.08
3.00
3.27
4.29
4.02
3.00
3.27
.;:4.30
4.02
3.35
2.82
3.34'
2.82-
19.35
,
„
2.83
3.35
-
2.83
3.35
j
2.83
3.35
-
•
.
2.82 "
3.35
2 l'/l
2.83
3.35
_
!
,
■
2.83
3.35
3.35
2.83
;
j
2.83
16
■:
15
14
,
ii
•8
2.83
P
Induf
V.
2.94
3.09"
7
2.94
3.09
2.94
■
4.02
4.29
4.02
2.83
:
4.30
4.02
3.09
2.94
,4.30
4.02
,3.09
2.94
3.28
4.30
4.02
'3.09
2.94
4.02
2.94
3.29,
4.30
4.02
;3.io
"3.10
2.95
i 3.00
3.28
4;30
4.03
3.09
2.95
-
2.99
3.29
4.31
3.29
4.31
3.28
4.31 i
4.02
4.32
2.84
3.00
3.28
•:
I—III:
,
2.95
that
telegraphic reports which
had
received
2.96
2.96
operating rate of steel companies
having 91% of the steel capacity
2.95
of the
2.96
capacity for
3.10
3.36
,2.83
,3.00
3.28
:
4.33
2.83
>3.01
3.29
;■
4.33
3.37
2.84
3.01
3.29
4.34
4.04
3.12
3.37
2.84
3.01
3.30
4.33
4.04
3.12
3.38
2.85
3.12
—.
\
4.03
4.03
3.11
3.11
...
\
2.96
2.96
'3.02
3.31
4.33
4.03
3.38
,12
f
2.86
3.01
3.32
4.32
4.02
3.13
2.99
3.37
2.85
'■3.01
3.31
4.29
4.00
3.13
2.97
3.36
2.85
3.01
3.31
4.28
4.00
3.13
2.98
2.99
3.30
4.27
2.97
...
v
ZL
22
;
3.35
2.85
2.98
1
—;
1
3.97
3.12
3.35
2.84
3.00
3.30
4.26
3.96
,3.13
2.97
3.36
■■•15
2.84
3.00'
3.31
4.27
3.96
3.13
2.97
*
3.35
17
•
—
27-
Mar.
Feb.
27
Jan.
•
2.97
3.12
2.96
3.93
3.13
2.95
2.97
3.30
4.26
3.94
2.84
2.98
3.30
4.28
3.94
2.87
2.99
2.97
3.29
2.88
3.02
3.33
2.82
: 2.95
2.86
3.06
.
3.14
,
4.30
2.97
3.19
3.02
3.91
3.09
2.94
4.03
3.20
3.08
'■
3.25
2.72
2.85
3.19
4.24
3.89
3.03
3.29
2.90
3.25
4.27 V.
3.91
3.06
2.90
2.87
3.01
3.56
,4.29'
>3.24
"
27,
•.'*
v
-..
3.56
1940—
:
.
4.79
>.
3.15
;
.'"These prices are
computed from average yields on the basis of one "typical" bond
maturing in 25 years) and do not purport to show either the average
■level or the average movement
of actual price quotations.
They merely serve to
V illustrate in a more comprehensive way the relative levels and the relative movement
(3%%
coupon,
of
yield averages the latter being the true picture of the bond market.
In
the issue of Oct. 2,
tThe latest
complete list of bonds used in computing these indexes-was published
1941, page 409.^
Overdue
beginning July 27 is equivalent to
1,647,700 tons of steel ingots and
castings, compared
to
1,676,500
tons
one
week
Repairs Again Soften Operating Rate
steel product and for
each producer is being received with approval,"
declared the magazine "Steel" of Cleveland in its current summary
on
July 27. which adds:
"It is believed this
•
in production of war
"steadier operation
ago,
month ago,
year
1,639,200 tons
and 1,612,500 tons
ago.
;
"The
Iron Age," in its issue of
(July 30) says in part:
Z
"The drop in the operating rate
today
from
last
week
comes
procedure will bring
steel.
a
greater degree of order
Principal benefit to steelmakers will be
of certain fin-<^
"
While the level may
'be below capacity it will be pref¬
erable to the irregular operation
'in recent weeks, when only lim¬
ited supply of semi-finished steel
ishing mills.
could
allocated
be
ments of
after
require¬
plate, bar and structural
mills
had
pears
that sheet and tin plate pro¬
will show improvement
duction
been
satisfied.
from
ad¬
ditional open hearths temporarily
down for badly overdue
repair
and
rebuilds,
with
scrap
de¬
ficiency for the moment an al¬
most negligible contributing fac-
tor.
•
■;^.;/:Z::/.;■//■'/
\
"Undoubtedly
there
deterioration
in
.
has
steel
It
ap¬
ity
of
to
scrap
pacity,
WPB
such
support
will
ca¬
for
press
an
additional
3,000,000 tons of pig
capacity in its 1943 building
iron
program
representing
ture of well
over
an expendi¬
$75,000,000. OPA
announced bitter opposition to
any moderate and over-all rise in
prices to accelerate the flow,
preference being to
employ public scrap campaigns, to
offset any reduction in
activity of
the
apparent
the
small
put
on
the
Metals
is
the
bound
collector.
Also,
dependence is being
growing activities of
scrap
considerable
Reserve
by
no
Corp., which
price ceilings, in
pointing toward a
recovery
over 60,000 tons in 1943."
farm
prod¬
the use
for
compete
land, labor, and feed.
same
"Fortunately, this year, for the
season
in
succession, we
have had unusually favorable pas¬
third
ture
conditions
and
early
during the spring
and we had
summer
abundant supplies
the past winter.
"At this
of feed, during
of the year pas¬
season
tures begin to dry up and produc¬
tion declines.
However, if prices
permit, producers will exert every
effort to maintain their production
because
of
Ordinarily
this season of the year, prices
begin to increase because of the
at
seasonal
decline
Therefore,
mind
in
production.
had two things in
we
in the action taken
on July
(1) to anticipate the increase
21:
in prices which would
in
the
and
price
of
case
by
increasing
and
the
to increase
now
later
come
butter
cheese
support
production
what it otherwise would be;
over
(2)
by adjustments between the"
of
manufactured
dairy
products to decrease production in
prices
instances and increase it
some
others.
At
effective
the
in
present, the only
have
of
ob¬
desired shifts
in
the
means
taining the
we
production of manufactured dairy
products is by the use of price dif¬
ferentials.
Quite naturally, plant
operators will shift their produc¬
tion into the
the
most
which pays them
use
comparatively
They have to do this
money,
speaking.
in order to remain in business and
ply, but tales of tank plants and
other prime armament producers
closing their doors are greatly ex¬
Activities
of
certain
plants. certainly have been
curtailed,. but for months heavy
production in that field has been
previously registered under Regu¬
Dairy Price Adjustments
To Assure Record
lation
Output
The
Department of Agriculture
on
July 23 that the adjust¬
said
ment
of prices of the five manu¬
factured dairy products should re¬
sult in a continuation of the
pres¬
ent
high rate of dairy production
and should shift production to the
types of products most needed for
the
war
effort.
The
adjustments,
announced
July 21, included decreases in two
instances
others.
v
and
increases
They
Reduction
(export
were as
in
in
three
follows:
evaporated
milk
strapped) per case
from $3.20 to $3,10; reduction in
the
cases
price
skim
of
milk
pound
to
roller
from
11.5
dry
cents
per
12
cents;
increase
in
dry skim milk from
spray process
13.5
process
cents per
pound to 14 cents;
(92 score at Chicago) in¬
the
market
pound from
of 37 V2 cents
per
price
from the inoperative
support
price of 36 cents established last
March 28; cheese (No. 1, Wiscon¬
and
sin
cheese
from
exchange,
20.25
cents.
cents
..
>
v,--\
a
:
per
critical
surveillance.
Ship
severly pared down to a
more digestible level.
The critical
domestic tightness in semi-fin¬
being
to
We
•'
.
realized
at
the
time
the goal was set that it would be
miracle
if
we
reached it
and
W—Consumer
became
Credit—but
subject
thereto
be¬
they are engaged in the in¬
stalment selling of listed articles
cause
added
by the amendment of May
The Bank said:
'■
6.
"In addition to the articles
pre-^f
viously covered, this amendment
broadened the Regulation to in¬
clude automobile batteries and
ac¬
cessories; tires and tubes; bedding;
draperies; binoculars; lighting fix¬
tures and portable lights; house¬
hold
electric appliances and mu¬
instruments not previously
sical
listed; used furniture; jewelry;
luggage; athletic equipment; table
and
kitchenware; pottery;
yard
ware;
non-military
clothing,
shoes,
and
hats
dashery.
"Any
is
including
other
haber¬
/:;Z.Z.vZ-;Z>;■'
■
person
who is required to
register should do
he
glass¬
goods; and furs and
prohibited
promptly,
so
otherwise
as
from
continuing to sell listed articles
an
on
instalment basis."
cy
MM——
—
.
21
Stating
record.
who
pound)
pound
that "American dairy
plate continues be to spotty and producers have done a magnificent
job," Secretary Wickard added in
tight, but additional improvement
is in prospect, mostly at the ex¬ part:
"Our
goal
for
pense of sheet, strip and structural
125,000,000,000
production.
Of
particular
sig¬ pounds of milk in 1942, which
nificance is that for some months would be the highest production
in history, will not be reached
Lend-Lease
shipments
of
by
s£eel
have
taken
really terrific bites possibly 5,000,000,000 pounds even
out of output, but now export is though we still will set a new high
under
attention to the fact that July 31
is the expiration date of the gen¬
eral license granted to
persons not
butter
sup¬
of
:
been creased to 39 cents
truck
"Application of War Production Board's quota system for each
'
'
of
1.7% from the preceding week.
The operating rate for the week
aggerated.
Quota System To Aid War Steel Outpiil-
capacity sev¬
Being skeptical
also of sufficient and
proper qual¬
beginning
or
some
*
it
the
be 97.0%
week
2.83
2.74
that
July 27, compared with 98.7% one
ago, 96.5%."one month ago
and 97.6% one year ago. This rep¬
resents a decrease of 1.7 points,
2.99
3.14
4.05
4.24
.
3.39
3.16
3.92
4.47
3.27
3.95
4.27
to gain a few
tons of
more
eral years hence.
week
2.98
4.37
:
will
the
one
:
3.15
:
1941—--—.
2 Years ago,
July
industry
2.95
•
^
/'
indicated
one
3.30
2.84
3.42
I
1941
-
2.84
>
3.34
,
1942—
28,
3.13
3.95
4.25
3.39
1 Year ago
July
3.96
4.26
3.30
3.37
High 1942
-
4.27
3.30
2.96
3.34 v
..a..
/High 1941-—.
•Low
3.30
2.97
2.83
3.35
—
30
Low
3.00
2.83
3.34
3.34
2
—
,
■
2.84
3.34
24
Apr.
—io—:—
other
docks ZJuly
2.95
> 3.37
-
Erie
3.10
4.02
2.84
Lake
3.10
4.02
3.00
2.83
which
ucts
substantially
are
of
drawing in
remote
scrap,
and to
continue
production.
Conse¬
tackling the. more
sizable
and
quently when we wish more but¬
1 costly
wrecking projects. The lat¬
were
ter, for example, as we do now,
30,981,163 tons, compared ter involves such varied
activities we
increase the price of butter by
with 25,199,177 tons June 1.
A as
drawing several old hulks from
comparison to other manufactured
year
ago
stocks were 26.629.670 the river in
the Philadelphia area,
tons.
Two more blast furnaces
dairy products."
<
•
at a cost of
perhaps $35-$40 a ton.
in the United States and one more
and' ripping
girder rails out of
in "Canada were producing July
concrete at a price
probably near Urges Registration Under
1 than a month earlier, the total
$75 a ton. Even higher costs might
Consumer Credit Rules
being 181."
«rj: be involved in
removing old car
The American Iron and Steel rails,
Officials of the Federal Reserve
an
extensive program for
Institute on
July 27 announced which is under way in New
Jersey Bank of Chicago on July 25 called
on
3.10
4.02
i 3.00
2.83
Exchange Closed
■
8
4.30
3.28
•
12.99
,
3.36
26
29
2.94
2.94
3.28
3.36
fr 5
3.09
3.09
3.28
i't 2.98 •
'
4
1 19
2.94
,3.09
,
2.99
3.36
2
4.02
3.00
2.83
:' 3.36
—
4.30
4.30
3.28
2.99
* i
2.83
3.35
3.35
•
eZZZZZZ"
V
4.29
3.27
3.28
3.00
2.83
3.35
—
9
,-V
R. R.^
Baa
3.28
3.00
:3.oov
r
.2.83
3.35
io
May
Corporate by Groups
!
3.35
3.35
_
_
13
■•■
110.34
1
17':
r
108.70;
Prices)
A
V, 2.99
,
27'—:.
June
91.77
AVERAGES!
current production
from
away
scrap
4.01
i
84.94
Closing
Aa
25—.24
con¬
4.01
Individual
2.82
June
sumed
4.29
YIELD
Aaa
3.34
■
4.29
'
103.13
Corporate by Ratings
rate
in
steel
more
is
3.28
//v
'■
i.i Avge.
Average
v
to
3.27
v*.V- -.v..".".
92.06
97.47
112.00
115.04
;■•
108.52
112.93
BOND
Corpo¬
not
2.99
115.04
■■•:■:'..■':■
(Based
results.
furnaces
has
enough
2.99
115.63
Dally
long
is
12.99
118.20
1940- -115.57
several
drive
7,043,434 gross tons of iron
ore, only slightly less than 7,239,788 tons smelted in May, a longer
month.
In June, 1941, consump¬
tion was 6,231,067 tons:
For the
first six months this year 41,960,455
tons
were
used, compared
with 36,681,083 tons in first half
last year.
In spite of the heavy
consumption stocks at furnaces
/
•: v.;,.
119.52
in
but
way
effect
"Blast
having
nationwide
under
in
show
to be in ef¬
material
appreciably
getting
106.92
115,90
mid4
a
drain
million
•
and
appears
of
The
118.41
1943—
•.:
flow
106.39
MOODY'S
■
fect,
117.08
1941,
lull
summer
116.34
''
7'
situation
scrap
118.20
—
...
relining in most in¬
ZZZ/4ZZ
■
"No betterment has appeared in
the
113.89
116.41
usual, time for
stances.
those
this and other factors.
106.21
»
products
of the
feed, but by rea¬
that prices
of
fact
despite disadvantages
realistic
a
idle furnace in the East has added
Furnaces
being pushed far beyond the
the
indi¬
cates
113.50
■
of
son
expansion plans about 10%
113.89
116.22
18
',
113.89
106.39
costs of labor and
steel
110.88
118.35
"It should be kept in mind that
dairy producers have been handi¬
capped, not only by increased
trim
110.88
106.92
20
' 'I,-'
to
110.88
106.92
23
drained in the
/ " "''Z
decision
95.47
106.92
22
has
Z: '
95.62
2 Years ago
July
blast
'
■
"WPB's
the
of
out
were
past.
95.47
118.08
27,
in
91.19
1941-.
July
States
stacks
much steel
so
91.19
118.10
28,
181
many
mysterious sump holes into which
*91.05
1941.
July
■
United
the
week's steel output, with concom¬
itant
corking up of the
107.80
1 Year ago
■
of
1942.
Low
,
nine
promise of intelligent and
strategic
application
of
each
every
"Pig iron supply is maintained
satisfactorily under the allocation
system and essential consumers
are
well supplied.
Two relined
stacks have been relighted after
being out only a short time. Only
1942.1.
High
over
107.44
118.06
—
30
High
control
107.62
'
Low
statistical
112.93
2
Jan.
flexible
112.93
10
■
>
American dairy farmer.
their
calling the quota
strict, sensitive and
on
A
no
rolling schedules.
a tribute both
the patriotism and skill of thS-"-
to
below
many
insist
system.
Sellers gen¬ steel usage has
long been overdue
promises on A-l-a to kill off careless treatment of
tonnage, which ranked high a delivery dates, poor timing of de¬
short time ago.
Such orders are liveries, and growth of unbalanced
accepted but can not be included stocks. Production directives give
in
been maintained is
others
above A-l-a.
erally make
high rate of production that has
what the WPB designates as pro¬
duction directives, but what
112.75
116,22
117.80
27
steel
many
116.22
117.79
Mar. 27
of
116.02
106.39
118.33
24
.Feb.
fears
regarding their supply posi¬
a fortnight sink
to
whispers as the unlamented
priorities set-up is blanketed by
tion should within
106.39
117.89
-
8
17
vocal
users
106.21
117.90
22
Apr.
111.25
95.77
>
should
118.33
"■
C44;
is
-v: r
95.77
107.98
bars
appreciation of
the imperativeness of
winning the
war
by proper utilization of 98,300,000 tons of capacity, rather
-118.38
5
May 29
91.48
91.34
; 107.98
Closed
113.12
new
and
•
July -1, an unusually small pro¬
portion. Rehabilitation of a long-
118.14
19
.
steel
118.33
June 26
'
opinion
some
108.16
107.98
17
V,:'.
is
below
113.31
118.23
"
there
of the
none
been
113.31
■15
■
have
116,61
16
■
few
a
designations have
So far
ratings
and
in
116.61
18
'-
AAA
and
106.92
118.23
1
volume
ished
379
guickly reflect this action. More¬
over, the current widespread and
very
106.74
20
22
•
ir¬
on
118.22
_
23.
i,'.'
em¬
118.22
25
24
r
instances
R. R.
107.98
113.31
in
been received.
Baa
108.16
113.31
116.61
106.74
118.22
Corporate by Groups •
A
Aa
116.61
106.92
ployed only part time and
regular schedules.
makers
•
Averages
Workmen in
ries
Yields)
Average
on
plan.
new
these departments have been
"Higher ratings in the AA se¬
are beginning to reach steel¬
PRICESt
BOND
under the
Moody's Daily
Commodity Index
Wednesday,
Thursday,
Friday,
July
July
July
Monday,' July
Tuesday,
Two
Year
1941
ago,
1942
231.1
231.2
231.5
i_
4-——
27
—i
28
ago,
ago,
231.9
25—
July
weeks
Month
231.6
22__
23
24__
Saturday, July
July
June
232.4
229.2
212.2
High—Sept. 9
—
17
High—April
•.ujW—wrtn.
z
230-3
229.7
14__i_*_.
27—
July 28
Low—Feb.
a
the
L_,—
Tuesday, July 21
;
9_
—
219.9
171.6
234.0
220.0
>
New York continued at
silver at its varioius Western ore
The
New
in
quicksilver in New
mium,"
-1.'The advance in the all-commodity index was brought about
by a marked rise in foodstuffs.
In the food group, ad¬
vancing prices for 8 items more than offset decreases in 4, caus¬
ing a rise in the food group to a new high level;
An upswing in
to
the
about
.
was
remove
prompted by
uncertainty
the
has
other
only
The
commodities.
miscellaneous
The open market
DAILY
OF
11.775
't 16
( 'E.
METALS
&
J.
M.
New York
——Lead-
6.35
11.775
11.700
52 000
6.50
11.700
52.000
6.50
20
11,775
11.700
52.000
21
11.775
11.700
52.000
6.50?
22
11.775
11.700
52.000
.6.50
11.775'
11.700 i
52.000
6.50> !
During
,
Average
preceding week there were 11 declines and 10 advances; in the
seqond preceding week there were 12 advances and 11 declines.
.
WEEKLY WHOLESALE COMMODITY PRICE INDEX; 7
'
;
Straits
Week
Week
July 25
Each Group
July 18
■■
Bears to the
'
;
;■ '-.Group;,v
1942
1942
125.1
107.5
137.6\
137.3
117.7
159.6
158.4
"
Cottonseed OiLo.--—_.
I—
Grains
131.0
111.4
119.7
PO.4
127.6
7 127.8
121.4
104.4
104.4
151.6
151.6
120.7
120.7
materials---—
Fertilizer
117.9
117.8
117.7
115.3
115.3
115.3
106.4
104.1
104.1
104.1
—
_
machinery
Farm
100.0
.—--
—.
—i.
All groups combined-;
y
^Indexes
base
1926-1S28
on
lead
July
were:
25,
100.7; July
are
based on sales for both
the
trade,
domestic
copper
prices
prewar
\ "■;/
Voting Privileges
;
July 23 passed a
The House on
the
granting to-members of
armed forces serving within
the
continental
measure
prompt/and futurt
for prompt delivery only.,
its;
to
United
are
bill
The
elections;
States
a
Congressional
1942
the
in
vote
.
sets
ma¬
up
chinery, to be administered by the
of
Secretaries
of the vari¬
State
States, which permits soldiers,
and marines, if they are
qualified voters in their States, to
ous
sailors
have
in
voice
a
November
the
regardless of the regis¬
tration: requirements of States.: It
elections
112.0
Electric
Oifpisl F®r Weekended M/ 2§, I §42
does
affect
not
armed forces
Shews 12,0% Gain Over Same Week In Ii4l
of
members
the
wishing to take ad¬
vantage of regular absentee vot¬
esti¬ ing provisions nor does it affect
mated that the production of electricity by the electric light and other State requirements, such as
payment of a poll tax. ''<
power industry of the United States for the week ended July 25, 1942,
The
bill- extends
the
voting
was 3,625,645,000
kwh., which compares with .3,220,526,000 kwh., in
the corresponding period in 1941, a gain of 12.6%.
The output for the privileges to women nurses and in
tir: lV '■
week ended July 18, 1942, was estimated to be 3,565,367,000 kwh., an auxiliaries.;
As to the adoption of the bill
increase of 11.4% over the corresponding week in 1941.
'
1
by the House, United Press^ ac¬
i. V
;
PERCENTAGE INCREASE OVER PREVIOUS YEAR
T,
113.0
26,
July
100.4;
18,
n:
105.3,
127.1
128.9
•129.3
1942,
zinc quotations
and
recede
'•
Service Men Granted
116.2
•
'
The Edison Electric Institute, in its current weekly repbrt,
88.0.
1941,
"
and silver, 35.125c.
tin quotations are
99.3
Fertilizers
.'
104.0
104.4
120.7
1.3
-
148.5
lod.6
151.6
—■-
materials
Chemicals and
.3
147.5
drugs-,——
Metals
Building
.3
;
135.6
125.2
147.8
—-
6.1
.3
97.0
135.4
Textiles
.7.1
'
155.0
-
8.25
"6.35
quoted on a delivered basis; that is.
delivered at consumers' plants.
As delivery charges vary with the destination, the
figures shown above are net prices at refineries on the Atlantic seaboard.
Delivered
prices in New England average 0.225c. per pound above the refinery basis.
■
;
Export quotations for copper are reduced to net at refineries on the Atlantic sea¬
board.
On foreign business, owing to World War II, most sellers are restricting ofler*
fngs to f.a.s. transactions, dollar basis.
Quotations for the present reflect this changf
in method of doing business.
A total of .05c is deducted from f.a.s. basis (lighterage,
etc. to arrive at the f.o.b. refinery quotation.
'
In
-
'
8.2
i
113.8
127.5
—
commodities.
Miscellaneous
10.8
.
179.1
125.4
Livestock
17.3
Copper,
deliveries;
114.8
134.5
185.9
111.5
137.1
—
—_—A-—
Cotton
137.9
181.2
111.4
Products
Farm
23.0
132.8
levels."
8.25
,
quotations are "M. & M. M.'s" appraisal of the major United Stater
markets, based on- sales reported by producers and agencies.
They are reduced to tb«
Oasis of cash, New York or St. Louis, as noted.
All prices are in cents per pound.
1941
125.9
159.6
Fats and Oils
1942
139.1
Foods
25.3
6.35
ernment;
8.25
6.35
above
The
July 26.
June 20
127.6
Total Index
f
;
Ago
Ago
r
did incotne originating from gov-'
tin, 52.000c.; New York lead.'6.500cj St. Louis lead, 6.350c.:
St. Louis zinc, 8.250c.;
Year
Month ~
Preceding
government
4.2%, but in¬
to
I.; Never in the interim periods
.
Average prices for calendar week ended July 18 are: Domestic
copper f.o.b. refinery, 11.775c.; export copper; f.o.b; refinery; 11.700c.;
100]
2.3%
8.25
6.35
.
decade, in¬
from
derived
from
8.25
.
Compiled by The National Fertilizer Association
Latest
"
6:50"
the
thereafter. In 1899,
it moved up to" 8.5% and ita next;
major gain occurred in World War
-
r
1*1935-1939
>;•
8.25
v
gov¬
during
creased slowly
8.25
,
6.35
-4
V: /' • '
the week changes in the index were quite evenly
balanced, with 16 price series declining and 15 advancing; in the
ately lower.
.
,
6.35
11.775
17
A : r
Zinc
6.50
functions
the? Civil War
1869,
come
rose
St. LOult
St, Louts
New York
52.000
of
extension
the
depressed 'Thirties,, the principal
gains in the; relative- importance
of government* income developed
during war years.
From 1859 to
are
.
$6 at the time of our en+
"Before
the U. S.
and
I, only $1 of every
government payments.
with about $1 of
ernmental
London
QUOTATIONS)
Straits Tin,:
11.700
;
Official
prices
paid out dur¬
At the height
trance into World War II.
also
un¬
changed at 35 Vsc and 35c, respec¬
tively.
•
: '■
J
Domest., Ref in., Exp., Refin.
,
t.
York
New
for the metal in
PRICES
in
Market
twice
compares
every
pre¬
textiles index, which was moder¬
1
This
con¬
18
change during the week was the
rived from
been
Treasury
Electrolytic Copper——
July
to
average
group
The Government;
held, desires to keep out¬
put in this country at a high rate;
apd; livestock sub-groups declined.
Slight reactions in cottonseed
meal and cattle feed prices resulted in a small decline in the index
of
a
the trade
in
great
as
than
more
$10 of individual income was de¬
quiet and steady with
the price unchanged at 231/2d. The
prices for
stability of
long pull.
was
when the cotton, grain;
index slipped back fractionally,
products
it
The
farm
index: was caused by a rise in gasoline quotations.
fertilizer materials index also moved slightly upward.
The
"at
metal
some
Silver
The
-
fuel
of World War
tend.
Reserve
desire
a
and
ing World War I.
be forced to bid
may
domestic
for
Metals
The Association's re^
fully twice
was
1929
the annual amounts
eventually
Traders
in
as
Silver
York felt that the action taken by
chiefly
the
ernment
The basis
1943.
Association and released on July 27, in the week ended July 25,
19£2, rose to 129.3% of the 1935-1939 average, compared with 128.9
in,the preceding week.
At this level the index is 1.7% above the
corresponding week a month ago, when it registered 127.1, and is
144% higher than at this time a year a2°port also added:
"The income, derived from gov¬
$194.43 @
flask.
In regulating imports of silver,
acquiring surplus metal will WPB has taken a first
step in
continue at $192 per flask, f.o.b.
handling the supply-demand sit¬
New York. The purchase program
uation in the metal, silver mer¬
has
been extended to
Dec.
31, chants believe. The
jewelry trade
index compiled by The National Fertilizer
sal^; commodity price
per
for
moved up¬
The weekly whole-
led by a rise in food prices.
in
War Production Board.
level of wholesale commodity prices
general
last week,
addition to $198.08
York, at the request of the
purchase .depots,
Average Higher Last Week
»Price
ward
Commodity
Association
Fertilizer
National
Thursday, July 30, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
380
I
-
Mttii-Fsrroiss letelc—Silver Imports Placed
;
-
Ooitirol—Aagust Lead Fool Suspended
•
7'
-
■
Editor's ffpte,—Upon request of the Office of Censorship
>}.■
omitted for the duration of the
& M. J. Metal and Mineral
'
;
"Jew
war.
Markets," in its issue of July 23,
3outhern
Rocky
permission to import silver must be made on Form PD-222C.
Government agencies are not sub- $
Zinc
ject to the silver order and ex¬
isting private contracts are al¬
The Advisory
Committee" met
stand.
The
emergency
pool for lead .will be dropped for
the month of August. Metals Re-
.
serve
.
has extended its program for
buying
-
silver."
Went
on
surplus domestic quickr
The publication further
to say in part:
Copper
regional director
thq. Industry Salvage Section,
of
M. Decker,
Conserva¬
Industrial
of
Bureau
tion,' WPB, stated that this year
5,000,060 tons of copper are
peeded. The industry did not take
Word
this estimate seriously.
the
and
*
•
American
that ."South
week
last
announced
mines have been
copper
•
pribds
on refinery brass scrap, the
schedule has been brought more
ih line with the market price of
electrolytic
copper.
on
pool
emergency
cording
The
for
ac¬
advices.
that
believes
consumers
15%
August,
Washington
to
"industry
mestic
for
the
do¬
of lead will ask
comparatively
"allo¬
cated". lead for August.
Quota¬
tions ?-Aver e unchanged at 6.50c,
New York, and 6.35c, St. Louis.
,
V
I
-i
f
1
>
{
t t
\
t.
over
i5.i.
the
of bitter
passed
debate, and
of.
opposition
small
a
10.4
4.8
18-5
RECENT WEEKS
group
25.5
'
6.1
19.4
25.7
:
n.r;.:
12.6
of Southern Democrats; in
part the advices added:;
"The bill was passed by a stand¬
i3.3":
ing vote of 134 to 19 after Repre¬
John E. Rankin, Demo¬
;V':v 17..9'
sentative
(Thousands of Kilowatt-Hours)
crat, of Mississippi, unsuccessfully
sought to kill it on a motion to
recommit.
The motion was de¬
1940;
1941
1932
1929
v
1942
1941
3,304,602
2,944,906
+
12.2
2,503,899
1,429,032
l,688t434
2,515,515
1,436,928
1,698,492
1,704,426
over
feated by
Canadian advices state that
that
in
is
country
to
zinc
with
the
Western
at
With
last
week,
Prime
for
and in
some
efficient
more
instances shut
The
Carnegie-Illinois Steel
Corp.
told
employees
at
its
Canonsburg, Pa., mill that because
of the war emergency that unit
will be discontinued in August.
on
the basis of 52c for "Grade A"
metal.
"
*
'
■',
T,
:
".
:'
Straits
quality tin for future de¬
livery was nominally as-follows:
August
52.000
Tuly J8
Sept.
52.000
.52.000
52.000
52.000
52.000
52.000
July 17--1 _——_"_"_52.000'
July 20
'52.000
52.000
July 22
»
52.000
52.000
52.000
;
July 21
52.000
52.000
52.000
52.000
52.000
Chinese tin, 99%, spot,
51.125c,
all week.
Lcndon—No
1,615,085
3,372.374
1,435.471
1,689.925
calls
13
3,463,528
3,101,291
+ 11.7
2,664,853
1,441,532
1,699,227.
3,433,711
3,091,672
+ 11.1
2,653,788
1,440,541
1,702,501
nical questions before the
20
3,011,345
+ 11.5
2,550,071
1,435,731
1,425,151,
27
3,457,024
3.156,825
+
9.5
2,659,825
1,456,961
2,903,727
+ 17.9
2,425,229
1,341.73a
1.592,075
•July 11
3,428,918
3,178,054
+
7.9
2,651,626
July 18
3,565,367
3,199,105
+ 11.4
2,681,071
1,415,704
1,433,993
1,711,625
1,727.225
July 25
3,625,645
3,220,526
+12.6
2,760,935
1,440,386
1,426,986
1,723,031
Aug
Higher Wages Feature
1941 HatienaS Isieeme
Quicksilver
July
20
that
it
Co.
will
•,
/i
.
-
announced
buy
on
Southern States
some
directly invoked
resentative
1.724,728
tech¬
bill was
they accounted for
nose
insisted
would
under
in 1937, dividend payments again
accounted for from 6% to 8%. The
interference
election
machinery
that
the
'put
the
Federal
fully 8% of total realized national
income. In the late 'Twenties and
not
was
issue, Rep¬
as an
Rankin
legislation
camel's
and 1917 when
roll-call votes
"Although the poll tax common
in
the
for
tent
the
with
.of,
the
all
States'.":
'■
'"■?•'
"Representative John M. Vorys,
Republican, of Ohio, incensed over
first
the objections to passage, told the
payments in 1941 were $12,000,- half of this
year, coupled: with the: House that as- a result he had
000,000 greater than in. tfye previ¬ successively higher rate of busi¬
signed a petition to release from
ous
year, according. to the Con¬ ness taxation in
prospect, make it the
Judiciary
Committee
and
ference Board, while dividend and
likely that the proportion of in¬ force House consideration of the
interest
payments were $2,500,- come received in dividends will
Geyer Bill banning poll taxes for
000,-000 less.than in 1929 and only continue downward for the dura¬
Federal
elections.
Others
also
$431,000,000 greater than in 1940. tion.
adding their names brought the
These observations, are made by
"Salary
and
wagepayments total around
160, but 218 are? re¬
the Board in tentatively placing
alone in 1941 constituted 67.5%
quired.
V'/J: /„1
total realized national income in
of the dispersed national income,
"
'This filibuster which is being
1941
at
$90,000,000,000,- or fully as against 64.9% in 1940.
This
$10,000,000,000 more than the in¬ percentage has risen steadily from held on the floor today, in war
time, is a far worse threat to rep¬
come
distributed
in
1929,
the its low
point of 59.1% in 1936.
previous peak year of the Con¬ A similar gain in the proportion resentative government than any
discharge petition.' Representative
ference Board's long-term series.
of national income flowing to sal¬
The Board says:
Vorys declared. 'It is being engi-^
aries and wages developed during
neered by the same reactionary
At the outbreak of
"Dividend recipients in previous World War I.
Income received
in
the
form
of
by individuals
salary
and
wage
level
lowered
ments
of 1 dividend
recorded
-
during
pay¬
the
,
..
have
years
tion
improved their posi¬
to
aggregate pay¬
relative
ments to individuals.
Their share
of income last year,
about
as
low
depression.
quotations.
Reserve
2,762,240
3.263,082
1
and
passed.
1,723.428
3,424,188
received
Metals
-
other
1,705,460
.
July :4
;
plating coming in¬
to production, operations at some
of" the older plants are being cur¬
down.
1,381,452
2,598.812
Jun
methods of tin
tailed
2,477,689
9.6
Jun
be
Tin
and'
new
2.588,821
+
3,356,921
May 30
8.25c, St. Louis.
V;-':-:',
.V' '\
11.2
+ 12.5
3,076,323
3,003,921
in domestic
unchanged
quotation
was
+
2,954,647
6
3,365,208
May 23
exchanged
for
Prime
Western
produced in the United States.
The market situation
3,040.029
Jun
9
+ 12.0
May 16
fair
a
3,379,985
3,322,651
voice vote.
"Representative
Rankin
and
opponents repeatedly de¬
manded time-consuming quorum
2
May
little
I
;v
'
14.6 '-
18.5
,
7,1
21.2
Total United States
May
problems enter into the question.
July
omit
to
.
21.5
States
Coast
Week Ended
Tuesday
of keeping the
concentrate, supply moving to do¬
mestic smelters in quantity was
discussed.
Labor
and
shipping
July 16-
has Z decided
2.9
1942
question
Lead
Recognizing that the supply- sitI uation in lead has eased, WPB
.
4.1
hours
12.7
...
% Change
*
<:
9.7
after
*
DATA FOR
granted higher preference ratings
for obtaining, maintenance and
operating supplies.;
".
The price schedule for- copper
The market situation in tin has
: alloy
scrap
has
been' "revised not changed. Consumers are ob¬
downward by OPA;
In Towering taining the metal under allocation
.,
'
officials
WPB
on
August allocation is expected next
week.
'The price situation was
unchanged,, with domestic metal
at
12c, Valley, and foreign at
11.75c,.f.a.s, basis.. A,"
Thbvpffice of. Operations,. WPJB,
'
9.0 m":
17.3
Jun
with
duced
R.
.
tonnage of High Grade metal pro¬
.
8.9
Mountain-^
Pacific
tions fbr
to
3.6
'
July 21 placing imports of silver under complete control. The restrictions include silver in bullion, ore, concentrate,- and coins.- Applica¬
lowed
6.6
Washingtoft-^JUly 23
from
indicated that the measure
July 4, '42
3.3
7.6
Central.
West
4.3
8.6
Atlantic
Central Industrial
"Outstanding in developments in non-ferrous metals during
the last week was an order issued by the War Production Board on
•
4.9
England
Middle
July 11, '42
July 18, '42
July 25, '42
Major Geographical Divisions—
stated:
'
counts
-Week Ended-
production and shipment figures and other data have been
certain
tively,
as
however, was
the trough of the
In 1940 and 1941 they
and 4.8%, resoec-
5.4%
of such" payments.
contrasts
This
sharply with the course
quick- of dividend payments
that war,
tional
this division of the na¬
accounted for
income
forces which have held the Geyer
Bill
in
committee.
.
.
.
"
slightly less than 60%.
By 1920,
salaries and wages constituted al¬
most
two-thirds
of all income
payments."
!
pic-!
the enlarged flow of in¬
Another feature of the 1941
ture was
come
from
government.
during 1916 point: Jhe rBoard says:
On this
,, ,,
,{
(f
'They
ing
our
are
willing to delay giv¬
fighting
tunity. to
vote
in
men
an
order
appoirto hang
on
to their systems
of keeping
Negroes, from, voting.
They are
willing to .delay public business to
enforce thew will. * It is time they
;M^stpppedr;;,s.
,,,
i;
Volume
Number 4094
156
THE
COMMERCIAL & FINANCIAL CHRONICLE
of Governors
The Board
July
on
23
monthly
its
of the
indexes
Federal
of
Reserve
production, factory
time the Board issued
together with comparisons for a month and
June,
follows;
as
•>
.
'
'
1935-39
1923-25
year
for
ago,
are
INDEXES
industrial
production
for
average —100
;
a
indexes
7
BUSINESS
and
freight-car
series
Adjusted for
'
Without
.
.
—Seasonal Variation-
—Seasonal Adjustment-
May
June
June
May
June
1942
1941
1942
1942
1941
+ 177
174
159
+ 178
+ 185
182
164
+ 186
'
195
+245
<
.7
175
Total
—
Durable
+243
Nondurable
237
„
'
•
'
+ 138
Construction
183
165
138
139
J133
+ 197
158
76
101
226
129
+344
128.7
■'
150.3
134.0'
-
124.3
123.7•
-.+138
r
+131
77
..
<
77 239
+97
137.0
—
"Residential
._—
__—
138
-
>
198
138
■-
+ 132
131
—
,
Durable
goods'
Total
'■m.1
z—.—-
Nondurable goods
Factory payrolls—
*
7—'L
1
r
117
•
;••
----—.i..—
Durable
goods
Nondurable
\V
+233
192
135
,7 90
7 275
,
■„,,
7
7
in
155
.
137.1
't
«
•• •
1"
7
135.1
•
•
121.1
122.4
;
191.8;
173.9
146.5
it
152.2
232.3
,
a
■
7
127.9
<
152.5
'
■•;
<•».«—/. '• 'v';'
•
v
goods
week,
the
last
week,
are:
a
^
-
July 16,1942
July 23,1942
$174,129,000
" 7,705,000
166,424,000
$148,171,000
10,967,000
137,204,000
8,717,000
128,487,000
10,073,000
156,351,000
-
classified
and
in
construction
roads, and unclassified construction.
each
Occupations In
Communications Industries"'
the
and
groups, gains over last week are
reported in commercial building and large-scale
private housing, and
unclassified construction.
Increases over the 1941 week are in
streets
Critical
class
Subtotals
for
the
Making no recommendations of
its own,- the Board of War Com¬
munications announced on July 20
that lists of critical
occupations
in
the communications industries
have been forwarded to the War
Manpower Commission, the Selec¬
Service
System
and rthfe.
tive
United
States
vice for such
find.
may
Employment
Ser¬
these a'gerifcies
Board
further
use as
' The
of
work are:
7.
waterworks, $1,141,000; sewerage, stated:
$1,551,000; bridges, $510,000; industrial
buildings, $2,817,000; com¬
"Separate lists for each of the
mercial building and large-scale
private housing, $4,396,000; public different
types of communications
buildings,^ $63,731,000; earthwork and drainage, $258,000; streets and
show 23 classes of critical
occupa¬
roads, $9,074,000; and unclassified construction,
$64,693,000.
tions
for
cable
New capital for construction
companies/;; 45
purposes for the week totals $1,- classes
for
telegraph firms, 51
692,261,000.
This compares with $10,889,000 for the
corresponding classes for telephone organiza¬
1941 week.
The current week's new
financing is made up of $1,- tions, 48 classes in the various
685,122,000 in Federal appropriations for War
Department con¬ subdivisions of commercial radio
struction for the 1943 fiscal
year, $6,660,000 in corporate security communications
servi'c d
15
issues, and $479,000 in state bnd fnunicipal bond sales.
classes in international short-Wave
New construction
financing for the year to date, $9,493,390,000,
broadcasting
and
in
standard
is 93% greater than the volume
reported for the 30-week period
broadcasting there are 6 classes of
last
.
■.
/.
Factory employment—•
Total
1941
•
value-
contracts,
Total
„
.1—;
—
129
+88
.a—
+ 132
+286
■Minerals
the
July 24,1941
__„___$205,877,000
Private Construction
15,222,000
Public Construction
190,655,000
State and Municipal
17,034,000
Federal
173,621,00
week
160
'Manufactures—
,
for
Total Construction
In
•
,1942
\
week
-
loadings;
\
June
Industrial production—
current
volumes
—
for all other
averages 100
Construction
System issued
The
$5,458,460,000, is 94% higher than
148% gain in Federal work.
year ago as a result of the
industrial
employment and payrolls, etc.
At the same
its customary summary of business conditions.
but public construction
year,
Federal Reserve June Business Indexes
381
127.9
year.
'
•
Freight-car
loadings
141
143
139
139
138
136
technical workers and 3 classes of
Department
store
104
108
104
100
108
100
skilled
+ 132
1132
+ 123
sales,
value
Department store stocks, value.
'Data
.
not yet
available.
fPreliminary
\
-•
-77
-
—
+126
+126
-
dally
on
minerals
Book, multiply dur¬
able by .379, non-durable
by .469, and minerals by .152.
contract
indexes
based
on
^V;7y
■'
■
three-month
; 7
'J'-
second, month, of F. W. Dodge data for 37 Eastern States.
To convert indexes to value
figures, shown in the Federal Reserve Chart Book, multiply total
by $410,269,000,
by $184,137,000, and all other by $226,132,000.
Employment
of
Index,
Labor
without
seasonal
adjustment,
and
payrolls
Statistics.
index
compiled
by,
':
INDUSTRIAL
Adjusted for
June
Without
hearth
Electric
June
May
June
'
&
Bessemer
—
Machinery
Transportation equipment
Non-ferrous metals & products..
Zinc smelting
J-'
Zinc shipments
Lumber and "products
,
May
June
1942
1942
1942
1941
195
215
218
195 \
177
*
218
180
173
177
180
173
484
355
t280
'
1942
■485
•
:_•____■
Open
'
—Seasonal Adjustment-
;
215
Manufactures—
Steel
274
214
1941
>
■
•
i.
485
371
243
+399
+ 192
187
186
-'484
355
274
'
+193
"180
184
.143
146
144
tl30
_
Lumber
134
135
tl24
244
,
188
-184
-146
125
+134
155
+ 139
149
131
146
37
156
169
175
169
138
■35
tl53
-
169
135
; 143
*
.
"deliveries
4
textiles
Leather products
'*
37
156
;
150
Shoes.
169
173
169."
r
174
on
149
at
155
160
175
132
169
•
-
-
173
'
149
+117
163
123
122
that
Conditions
News
118
126
get
98
89
100
charge of 20%
112
102
112
the
124
138
147
+ 128
Other
products
tl37
snuff
122
134
127
+ 139
130
105
107
96
.96
101
•140
124
+ 146
140
.121
1138
foods
135
129
+ 131
123
123
128
122
—-i-:
tobacco
132
123
128
106
120
107
/ 113
140
131
150
142
144
effect
products
Paperboard —>
94
—
89
a
97
120
—
—
and coal
products
refining
Petroleum
Fuel
96
89
99
144
143
141
154
7 >■
:
114
112
104
it
128
100
;;
106
117
154
105
109
115
122
122
122
134
.
e
<t
7
7
101
+ 163
-———-----—-■
'
117
7V:
1
128
110
it
:
tioi
164
124
+ 153
154
511 ;v
+459
+ 171
167
+ 127
——
coal
..
7
■
144
An
New
article
York of
stocks of the
the
release
needed
,
Iron
+523
+1,65
+ 146
511
+459
166
;
.
7 138
+ 120
+155
+ 144
121
123
147
"Data
not
yet
+ 133
+ 120
120
151
(1935-39 average
==
164
199
197
113
115
126
103
98
135
189
Grain
88
——
Forest
products
159
-Note—To
convert
289
144,
1,
128
116
•
;
139
179
.
181
170
Ill
99
123
81,
89
136
v
142
r.
,
131
-
165
318
69
161 V
152
303
139
145,
141
.
144
coal
and
i
miscellaneous
by .213 and miscellaneous by .548.
62
102
Indexes
'
.
to
.
60
;
62
265
141
'
60
Merchandise, l.c.l.
coal
155
183
—
—
Miscellaneous
181
326
JRevlsed.
156
Livestock
Ore
189
371
s
100)
160
—
Coke
a
FREIGHT-CAR LOADINGS
.
—
381
117
126
+ 195
198
+Preliminary or estimated.
available.
V
Coal
,
115
i-
,
101
points In total Index, multiply
:
Feb.
provided
28
of
copper," were announced
The announcement was
India
that
for
■
the
an
official
•
Indian
Bud¬
emergency
sur¬
This
had
and
Financial
war
Chronicle"
use
of free
of
silver
production, whereby
"substantial
amounts
of
vitally
by the Treasury Department on
,
Council
stocks of the
in
curs
this
Under
v
the
silver
privately
of
Engineering Construction $148^171,080
used
view.
the
.
plan,
would
owned
which
be
made
has
*;
been
available
.
approved by the President,
to
Government-owned
and
plants
The silver would be used in the
plants (where such articles
as bus bars are now made of
copper) so as to permit substantially
all of the silver to be returned to the
Treasury after the termination
of the war.
us.
r
;
;.'t 7.-. ■;V V
v.:v.''
present over 1,360,000,000 ounces of free silver
in the Treasury which can - be used for this
purpose.
Its use will
release more than 40,000 tons of
copper for other war production
requirements."
There
are
at
A.' Reuter message
from Washington received on,.May,6 advised
that exports of silver from the United States to
Europe had been
stopped by a surprise embargo because it had been found that con¬
signments, though shipped to neutral countries, somehow find their
QUOTATIONS
.
April,
1942—
April 3 to 30
Average—
per
.
IN
LONDON
ounce
std.]
'f
of
are:
the
•
per-'
listed•',
■;■
labor
•
repre-'
7,
-
„
of Telephone
Work¬
for telephone workers!^/
ers,
"Joseph P. Selley of the Amer¬
ican Communications
Association,
for telegraph workers,
and '
Watt of the Amer¬
ican Federation of
Labor, for radio
."Robert J.
workers.
-
"Industry representatives^ are:*
"Keith S. McHugh of American
Telephone and Telegraph Co., for
telephone;
»
:
•
■
v
7
"Ellery W. Stone of Postal Tele¬
graph, for telegraph, and
"Dr. C. B. Jolliffe of Radio Cor¬
"Sidney D. Spear of the Federal
Communications Commission will
assist the sub-committees and
per¬
form
necessary
liaison on this
work for the Board."
7/16d.
_23M»d.
April land 2_
7/16d.
__„___231/ad.
Average-.:
'
QUOTATIONS IN NEW
35
The
23.4940d.
r
and
the
institutions
whicn we
have enjoyed since the days of our
birth."
Dr. Carbajal
during his.
official call upon Dr. L. S.
Director
YORK
(Per
Ounce
of every country
strengthened Rotary movement
a
deeper sentiment of Pan
Americanism,
stronger basis
enjoy,
anyone."
.999
35 V&
$4.03
as
throughout
the
fine)
-
cents
selling
$4.02Vi
new
a
during
-
have a
which to ar¬
which everyone
we
may
upon
peace
without injustice to
While in Washington
president of the Rotary
International
follows:
....
in the Western
Hemisphere, in order to "foster a
better feeling among the people
of the Continent, so that
through
at
Market Price
.
Rowe,
General
of
the
Pan
American Union, also pointed out
that he will embark upon a tour
will
official dollar rates fixed by the-Bank of
England
Buying
.;
everywhere to organize the
country in the fight for democracy
seen
23^.
cents
April, May and June, 1942, were
•
was impressed with
spirit evident in this coun-1;
try.
"I am impressed," he said,
"by the enthusiasm which I have
;
U. S. Treasury Price
an
ington that he
the
rive
•
23!4d. throughout
-
International, on July 22, stated at
the Pan American Union in Wash¬
23J/ad. throughout
23J/2d. throughout
Spirit
and
„23
April 3 to 30__
23.4940d.
Lauds U. S.
Dr.r Fernando Carbajal,: noted
Peruvian engineer and
recently
elected President of the
Rotary
a
Two Months
..
23
June, 1942—
engineering construction climbs 42% above a week ago,
Public work is 18 and 28% lower, re¬
spectively, than last week and last year.
sliver
May, 1942—
Private
1942 volume to $5,increase of 61% over the total for the 30-week period
Private work, $388,560,000, is 52% below the period last
(Bar
Cash Delivery
April 1 and 2____
but is 28% under a year ago.
1941.
the
"Paul E. Griffith of the National
Treasury, after study of the problem, has
legal authority to lend-lease the free silver
Treasury for this purpose. The Attorney General con¬
engaged in war production,K particularly
aluminium and magnesium
plants.
Title to the silver, would re¬
main in the Treasury.
The silver would not become a part of the
products of the war production. plants, nor would the silver be
For Week
Engineering construction volume for the week, $148,171,000, is
15% below the total for the preceding week, and 28% under the vol¬
ume for the corresponding 1941 week as reported by
"Engineering
News-Record" on July 23, which also said:
in
in
the
into Axis hands.
The embargo includes Spain,
Portugal, Swit¬
zerland, Sweden, Vichy France, Turkey and French Africa.
The. current week's construction brings the
r
functions
persons
poration of America, for radio.
follows: ■■.■">■':■
as
way
847.020,000,
sentatives
the
on
by
position.
India
Secretary of the Treasury, Henry Morgenthau, Jr., an¬
nounced today that the
Treasury Department had been asked to
work out some means for
making the free silver stocks of the
Treasury available for use in connection with war production and
thereby release substantial amounts of vitally needed copper.
The
+ 155
154
+153
111
155
from
from
"The
164
+ 117
225
formation
formed
concluded that there is
+ 111
7
quarter under review.
demand for. ;trade require-
by mail
effected
be
General
120
*
suggested that the in¬
and labor representatives
"Members
16 stated that plans for the
102
$131
235
April
101
108
Lead
\
-
the
Treasury in connection with
would
*
■
105
+157
—
ore
remainder .of
"Commercial
126
+ 127
."
petroleum
Metals
-
the
134
+ 111
Anthracite
Crude
173
.
April 7.
in
121
+ 130
125
+ 168
—
—
■
■
1-6^-6 per
103
Minerals—
—.—
of
127
'
Bituminous
on
+163
+146
+523
was
try Subcommittee should consult,
directly with
the
Government
agencies in supplying detailed in¬
//
practically all customs:import duties.
raising the duty on imports of silver into
122
':*•
+ 155
Byproduct-—-------..--—
Fuels
V
"
1,219,068
on
*
<■
104
Beehive————————,—.——•
107
'
<t
Kerosene
;
127
104
v
'■■" '
123
oil
115
■
98
123
103
+110
•
127
it
t
Chemicals
Z V
120
'
+99
oil
*Coke
145
"
97
.
Lubricating
;
104
;
+ 111
-
Gasoline
,
144
103
Newsprint production
Printing and publishing 7——,
Newsprint consumption a—
Petroleum
145
—
—
•-
*
positions
the Board's Joint Labor-Indus¬
on
by
100 tolas to Rs. 8-7-0 per 100 tolas, as compared with
the Rs. 7-0-6 per 100 tolas
previously in operation. '/>;■• -.r
Rs.
■
Paper and
the
statement -made
&
1
_——
118
108
136
™
122
112
—
Manufactured
121
102
—L-i
products—-------..,-
-Cigarettes
+ 113
+150
,
—
Cigars
144
'
manufactured
Tobacco
133
for
received
was
104
food
-
.■■■;■';
continued
> 94
packing
"
was
leathers
Manufactured
"It
dustry
ounces
1,166,456
to be quiet, but
fairly steady and was satisfied partly
and partly from production sources.
...
•ments
120
125
figure
leathers
V-—
Meat
H
163
126
leathers
7 Wheat" flour
1941
1,199,476 fine
■'
in the in-
of
delivery; there was no change on the following day but
Federation
.April 3, quotations reverted to 23%d. and remained unaltered
kip
hide
and
■•:;■
"
exclusion
or
branches of the industry."
months'
171
these
communica¬
have been different in the various
; ■
ounces
Silver
and kid
Calf
- •
consolidate
entire
principles applied
elusion
April 1, the liquidation of some outstanding bull contracts
prices to ease l/16d. to 23 7/16d. for both cash and two
caused
,166
35
+153
160
128
Cattle
Goat
1942
1,214,130 fine
1,182,678 5■
1,214,987
"
•
t
•
156
.183
152
149
tl28
-
Tanning
;
^
On
178
;
*
Rayon
>
——
May
140
'
,
March
-144
135
,
152
145
glass
products
.Cottoiq; consumption
'77
when
further
;
170
143
+136
*
145
Cement
plate
'-'
13,
no
of
187
>180
•170
1124
tl43
.
and
Bank
"The
it is in
that
industry due to the fact that
the nomenclature of positions and
the
England's buying price for gold remained un¬
changed at 168/- per fine ounce, at which figure the above amounts
were
calculated.;.':.
':77:;-\7 ^ ;'7.
\7;;.;7;V7.\''7'.-'77' ■ V''" 7''
The - gold output of the Transvaal for
the months of March,
April, and May 1942, .are given below, together with figures for
the corresponding months of 1941 for
the purpose of comparison:
1
Polished
at
£241,575 until May
slight increase to £241,718; there has been
a
214
371
i
•
Wool
was
to
the
told
were
feel
not
position
lists' for
"
Stone, clay, & glass products.—
Textiles
there
unaltered
agencies
does
tions
gold held in the Issue Department of the Bank
remained
■
;
+280
t399
-
Furniture
amount of
England
a
Gold
;
The
of
The
(1935-39 average —100)
—Seasonal Variation—
reprint the following from the quarterly letter of Samuel
Montagu •& Co. of London, written under date of
July 1, 1942:
change to date.
PRODUCTION
Board
We
moving averages, centered at
residential
Bureau
personnel in program de¬
partments.
-
"The
Note—Production, carloadlngs, and department store sales Indexes based
averages.
To convert durable manufactures, non-durable manufactures and
indexes to points in total index, shown in Federal Reserve Chart
Construction
73
-
■
estimated."-, tRevised.
or
has
conferred
with
high government officials. He has
been accompanied by Dr. Raul
Selva, of the Rotary of Argentina,
and Mr. Philip, Love
joy, General
Secretary of the Rotary.
The
Daily Average Crude Oil Production For Week
Ended July 18,1942, Rose 56,000 Barrels
_
following notation:
the
makes
Bureau
Thursday, July 30, 1942
CHRONICLE
THE COMMERCIAL & FINANCIAL
382
Lumber Movement—Week
,
During the period of rapid changes caused by price controls,
materials allocation, and rationing the Bureau-of Labor Statistics
Ended
report changing prices.
The indexes,
however, must be considered as preliminary and subject to such
adjustment and revision as required by late and more complete
promptly
attempt
Lumber
production during the*
week ended July 18, 1942, was 7%
greater than the previous week,
shipments were 0.3% less, new
business 3% less, according to re-,
to
Petroleum Institute estimates that the daily
crude oil production for the week ended July 18, reports.
The following table shows
index numbers for the principal
1942 was 3,713,400 barrels, a gain of 56,000 barrels over the preced¬
ing week and an increase of 37,350 barrels over the corresponding groups of commodities for the past 3 weeks, for June 20, 1942 and
week last year.
The current figure, however, was 129,400 barrels July 19, 1941 and the percentage changes from a week ago, a month
below the daily average for the month of July, 1942, as recom¬
ago, and a year ago:
;
;
J '
(1926=100)
•
■
mended by the Office of Petroleum Coordinator.
Further details
Percentage changes to
as reported
by the Institute follow:
July 18. 1942, from—
Reports received from refining companies owning 86.9% of the
/
7-18
7-11
7-4
6-20
7-19 7-11
6-20
7-19
Commodity Groups—
1942
1942
1942
1942
1941
1942
1942
1941
4,684,000 barrel estimated daily potential refining capacity of the
All Commodities..
*98.3
*98.5
*98.5
*98.1
88.3
—0.2
+0.2 + 11.3
United States, indicate that the industry as a whole ran to stills,
Farm products104.9
105.5 104.9
104.5
85.4 —0.6
+0.4 +22.8
on a Bureau of Mines' basis, 3,582,000 barrels of crude oil daily dur¬
Foods—
98.3
98.7
99.3
98.4
83.8 —0.4 —0.1 +17.3
ing the week ended July 18, 1942, and that all companies had in Hides and leather products— 118.8 118.9 118.9 118.9 109.6 —0.1 —0.1 + 8.4
Textile products-'
96.8
96.8
97.3
97.3
85.0'
0
—0.5 +13.9
storage at refineries, bulk terminals, in transit and in pipe lines
79.6
79.5
79.5
79.0
79.3* +0.1 +0.8'+ 0.4
as of the end
of that week, 84,069,000 barrels of finished and un¬ Fuel and lighting materials
Metals and metal products
—*103.9 *104.0 *104.0 *104.0
98.6 —0.1
—0.1 + 5.4
finished gasoline.
The total amount of gasoline produced by all Building materials———.110.2 110.3 110.6 109.9 102.6 —0.1 +0.3 + 7.4
Chemicals and allied products—
97.2
97.2
97.2
97.2
85.0
0 '
0
+14.4
companies is estimated tb have been 10,963,000 barrels during the
American
The
gross
average
ports
•
i
.
sponding
week of
tion
—
..
Miscellaneous
Week
Allow-
♦O.P.C.
Ended
July 18
July
Ended
July 19
95.4 —0.1
81.7r—0.4
85.5 —0.3
87.6 v - 0
90.0 —0.2
104.5
90.1
99.9
92.8
90.0
98.7
92.6
*98.7
*98.9
*98.9
*98.8
*96.9
*97.0
*97.2
*96.7
*95.9
Manufactured products
All commodities other than farm
Ended
July 18
5%
*96.0
*96.1
.
products—
..
9,7
+16,4
+ 5.9
•+ 9.7
•—0.4
+0.8
+0.2
+
—0.1
1941
421,800
Oklahoma
433,000
433,000
t374,650
+
2,650
Kansas
283,200
283,200
1286,050
+
14,900
373,000
272,350
t3,450
—
150
3,650
...
89.7
—0.1
87,850
*95.9
82,350
4,100
Nebraska
84,500
Panhandle Texas
+
350
144,300
+
4,700
198,050
220,400
142,450
West Texas
4
—
87,700
+
2,400
85,350
297,700
+
7,600
275,100
296,000
154,950
+
8,100
140,950
179,650
253,050
+
1,750
239,250
243,900
1,232,250
+
28,300
1,170,850
1,231,250
Central
Texas-
Coastal
Texas
Total
Texas
North
{1,284,711
1,214,400
—
94,200
+
850
92,400
76,100
223,300
+
1,350
220,900
244,500
317,500
+
2,200
313,300
320,600
Louisiana
Coastal Louisiana
Louisiana
Total
337,600
319,600
72,250
70,823
78,500
Arkansas
181,700
278,850
{19,150
73,100
72,750
83,250
279,000
332,850
150
18,900
19,600
+
—
,
million-ton
mark again
that production of soft coal passed the 11in the week ended July 18, the total output
98,050
90,950
61,800
6,100
65,600
40,550
Wyoming
+
50
92,050
23,100
21,750
+
350
21,850
year
Montana
83,450
19,400
7,150
+
750
6,850
3,950
stocks
3,012,300
40,300
2,936,600
701,100
15,700
660,250
3,035,550
640,500
Total East of Calif.
3,103,300
739,500
California
§739,500
56,000 3,596,850 3,676,050
♦O. P.'C. recommendations and State allowables represent the production of all
petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however,
that certain wells may be incapable of producing the allowables granted, or may be
limited by pipeline proration.
Actual State production would, under such conditions,
prove to be less than the allowables.
The Bureau of Mines reported the daily average
production of natural gasoline in April, 1942, as follows:
Oklahoma, 27,500; Kansas,
4,800; Texas, 90,700; Louisiana, 15,300; Arkansas, 2,600; New Mexico, 5,300; California,
3,713,400
3,842,800
Total United States
+
40,100; other States, 22,200.
-Week Ended
§Recommendation
of Conservation Committee
Daily, average
t *Crude
petroleum-
WEEK ENDED
JULY
18,
V,
1942
1
OF
i-.'V
*
..
basis
at Re-
Crude
% Re-
tial
Rate
District—
Combin'd: East
Texas
„
Includ.
% Op- Natural
..
porting Average erated
' i;
■
.
-
—
5,037
89.7
1,612
67.6
174
84.5
84.9
166
95.4
81.1
50.7
734
377
95
93.6
90.2
68.8
2,432
1,267
298
787
90.9
598
76.0
1,468
tacky Mountain
-
California
basis
J.
S.
S.
July
U.
S.
July
Bur.
basis
*At
Penn
July
the
-
B.
Of
461
'■
of Re
Oil and
sidual
Distillate
Fuel
Fuels
11,
86.9
4,684
4,684
3,582
76.5
10,963
1942
86.9
3,582
76.5
149,100
564
556
4,336
1,459
1,474
i
2,254
379
565
15,934
11,795
54,196
35,176
77,230
10,675
85,658
34,418
77,891
12,570
86,291
40,724
91,059
Petroleum Coordinator.
barrels.
terminals, in transit, and in pipe lines.
at bulk
and
are
;
Decline 0.270
Ended July 18, Labor Bureau Reports
Wholesale Commodity Prices
U. S. Department of Labor,
announced on July 23 that weakening prices for certain agricul¬
tural products, particularly fresh fruits, vegetables and livestock,
largely accounted for a decline of 0.2% during the week ended
July 18 in the Bureau's composite index of 889 series priced in
primary markets.
At 98.3% of the 1926 average, the index is V2
of 1% below the 1942 high point of late May but it remains more
than 11% higher than at this time last year.
Average prices for 7 of the 10 major commodity group classi¬
fications declined.
Farm products dropped 0.6% offsetting the
gain of the preceding week.
Foods and miscellaneous commodities
decreased 0.4% and hides and leather products,-metals and metal
products, building materials and housefurnishing goods each drop-I
ped 0.1%.
The index for fuel and lighting materials advanced]
0.1% as a result of higher prices for gasoline in the North Texas
area.
of
Labor
.
-
'
Statistics,
13,764
118
System
tenth
The
of
anniversary
the
3,785,000
3,311,100
••
;
>
■;■
.
U.
)'
:
based on railroad carloadings and river ship¬
district
v'
July 11,
July 4,
July 12,
1942
1941
1940
133
22
35
14
96
69
70"
i
1
973
655
■
;
:
42
avge.
111923
*4
389
74
165
-
tt
584
1,268
234
263
359
{{387
40
140
—;
I
451
.
44
14
87
88
■'+
124
90
72
134
39
;
..
828
-
—
„
:
508
868
809
600
735
235
190
175,
117
101
202
39
Kentucky—Eastern
Kentucky—Western—
32
.32
22
20
42
3
5
17
41
5'
6
,
2 "
■
60
and
(lignite)
South
56
43
45
34
30
27
21
21
30
52
23
,
23
21
14
465
Dakota
—
reports.
and loan associations
13
'
the
own
25% of
outside of the United States Gov-,
**14
379
854
It
ernment.
is
pointed
out that
they have used in the course of
the past 10 years, $1,000,000,000
of advances from the 12 regional
banks and are now using some
$200,000,000.
These institutions,
through their national organiza¬
tion, the United States Savings
and Loan League were the spear¬
head
and
(bituminous
enactment,
and Loan League
The savings, building
Savings
capital stock of the system,
the only stockholders it is stated^
to a degree sufficient to mention'
44
1
{{944
462
Indiana
Montana
3
240
96
1,078
——
Michigan.
4
263
<
tt
Georgia and North Carolina-
Maryland—
5
292
80
-
Missouri
5
66
377
and
i
1937
288
.'
5
Alaska
Alabama
Kansas
July 10,
July 13,
1942
S.
the
July
—Week Ended
:
.
this
from
start
BY STATES
PRODUCTION OF COAL,
estimates are
State—
North
Bureau
119
116
Celebrates lOih Year
;
subject to revision on receipt of monthly tonnage reports from
annual returns from the operators.) •
lignite)
The
13.879,
Savs, & Loan
and State sources or of final
New Mexico-
In Week
Orders
96
11.659—100ft
106
272,183
297,864
Shipments-
COKE
AND
July 19,
v
4,314,400
•
WEEKLY
ESTIMATED
Arkansas and Oklahoma-
t84,069
1942 Week
■ 369
256,573—100(
*
■
3,495
7,556
76,434,000 barrels; unfinished, 7,635,000
{At refineries,
{July 18,
128,400
154,800
-
revision.
Iowa:——
3,819
1941
request of the Office of the
{Finished,
16,944
15,682
2,825
—
Production-
319,770
:
Hardwoods
signing of the Federal Home Loan5
Bank Act on July 22 found savings,
By-product coke—
1
{
{
33,424,100
building and loan executives ap-r
United States totalJ_^—1,187,400
1,186,900
Includes washery and dredge coal, and coal shipped by truck from authorized
praising -the system of 12 Federal
operations.
tExcludes colliery fuel.
{Comparable data not available.
§Subject to Home Loan Banks which took its'
total
States
Illinois—-
Mines
19,
16,643
316,223
Beehive coke—
Oil
:
1942
.1942
Colorado-
M.
18, 1942
Of M.
B.
of
39,818
154,675
July 2(5,
/,.. 1942
(
1941 r...■ 1929
1,314,000 32,412,000 29,443,000 33,338,000
1,248,000 30,791,000 27,971,000 35,578,000
1,222,000" 1,193,000
1,161,000
1,133,000
(The current weekly
784
418 '
138
U.
of Gas
"
311,628
-
Softwoods
Calendar Year to Date——
July 19,
1941
July II,;
§July 18,
.;
♦Total, incl. colliery fuel
ments
2,383
Inland Texas__
basis
{Stocks {Stocks
North
Arkansas
nd„ 111., Ky._—3kla., Kansas, Mo.
rot.
(In Netj Tons)
Week Ended-
[In Thousands of Net Tons]
Appalachian
rot.
finished
Blended Gasoline
168,839
,
ANTHRACITE
PENNSYLVANIA
OF
,
;
{Commercial production
Gulf, Louisi¬
Louisiana
and
Stocks
Finished
and Un-
Orders
during the week converted into
Coast,
Gulf,
ana
Daily
fineries
286,062
286,946.'
1942 Week
•;
anthracite—
United
Gasoline
Runs to Stills
470
250,416
298,666
1—„
Mills
'
Production
Capacity
171,846
PRODUCTION
'
■
therefore on a Bureau of Mines
Poten¬
5,888
"
of Barrels of 42 Gallons Each)
in this section include reported i totals
plus an estimate of unreported amounts and are
•
5,859'
451
281,635
Shipments—
241,450
1,451
,
451
Mills
1,531
253,884
Wk. (rev.)i
Week
.Week
Production— 268,232
equivalent coal assuming
6,000,000 B.t.u, per barrel of oil and 13,100 B.t.u. per pound of coal. Note that most of
the supply of petroleum products is not directly competitive
with coal. (Minerals
Yearbook, 1939, page 702), {Subject to current adjustment.
: ;
Figures
Daily Refining
1,872
—
v
(Figures in Thousands
1942
311,733"
1,796
barrels produced
♦Total
.
OIL,
1941
10,773
1,793
5
1942
Previous
1941
1942
.
of California Oil Producers.
CRUDE RUNS TO STILLS; .PRODUCTION. OF GASOLINE; STOCKS
FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL
•••..'
'
of
equivalent
weekly output
ESTIMATED
V
1942
10,760
1,846
/,
fueli-
mine
HARDWOODS
SOFTWOODS AND
1937
1941
1942
11,075
5,948
coal—
lignite
Total,. inCf
week:
current
thousand board feet:
July 17,
July 19,
t July 18,
July 19,
July 11,
July 18,
and
Bituminous
Coal
Ind. figures-are for week ended 7 a. m. July 15.
{This is the net basic 3i-day allowable as of July 1.
In the area outside East
Texas shutdowns were ordered for July 4, 5, 11, 12, 18, 19, 25, 26, 29, 30 and 31J
in'East Texas for July 6, 13; and 20, in addition to the aforementioned days.
week
with
from
January 1 to Date
—a
the
the corre¬
sponding week a year ago, and forthe
previous week, follows in
PRODUCTION OF COAt, IN NET TONS, WITH
OF CRUDE PETROLEUM (000 OMITTED)
STATES
UNITED
ESTIMATED
Hardwoods
and
ended July 18, 1942, for
that the estimated
also reported
of Mines
Bureau
gross
ago;
a year
24% less.
for
Record
COMPARABLE DATA ON PRODUCTION
tOkla., Kans., Neb., Miss.,
-
S.
U.
The
production of by-product coke in the United States for the
ended July 18 showed an increase of 500 tons when compared
the output for the week ended July 11.
The quantity of coke
beehive ovens decreased 5,700 tons during the same period.
than
were
Softwoods
of 92,000 tons (7.0%). The calendar
gain of 10.1% when compared with the same
to date shows a
Unfilled orders were 14%
greater
period of last year.
106,550
65,150
89,500
89,500
Mexico
New
—
65,150
7,700
Colorado
3,150
+
98,650
Comparisons
unfilled orders to
ratio of
ago.
however, there was a decrease
91,950
112,600
Ind)
—
production.
stocks was 71% on July 18,.
1942, compared with 47% a year
according to the U. S.
estimated at 1,222,-
96,800
and
was
gross
Mines, for the week ended July 18 was
Bureau of
business
The
for the
corresponding week of last year.
Production of Pennsylvania anthracite,
28 weeks
the
Supply and Demand
10,760,000 tons in the preceding week, an increase of 315,000 tons, or
2.9%.
The current figure was also 302,000 tons in excess of the figure
64,800
111.
incl.
(not
Eastern
Michigan
1941 pe¬
of 1942,.
25% above pro¬
the orders of the
For
above
against
during that period being estimated at 11,075,000 net tons, as
the
8% •
above
orders
new
duction, and shipments were 14%
000 tons, an increase of 29,000 tons or 2.4% over the preceding week.
When compared with the output in the corresponding week of 1941
Indiana
and
new
in its latest report, states
47,250
2,150
5,100
—
22,000
,
Illinois
1,300
+
■,
49,900
304,100
Mississippi
5%
were
riod.
Division, U. S. Department of the Interior,
The Bituminous Coal
the
,
2% be¬
corresponding weeks/of 1941; -
shipments
''' '
Weekly Coal and Coke Production Statistics
80,000
East Texas
Southwest Texas
East
for
above
128,950
211,900
North Texas
Comparisons
production
shipments,
>.S'
♦Preliminary,
week.
same
Reported
low
+ 6.9
0
the
first 28 weeks of 1942 was
5,200
4,100
products and foods-
239,050
produc¬
1941,
less, shipments, 4%
new
Year-to-Date
+0.2 + 9.0
—0.1
and
ments in
-
.
88.9
was
less,
All commodities other than farm
1942
Week
1942
Week
4 Weeks
From
Previous
104.5
92.8
Semimanufactured articles
Change
ables
Beginning
July 1
Recommen-
—
104.5
90.0
99.8
92.8
Raw materials————
-Actual Production-
♦State
daitions
(FIGURES IN BARRELS)
OIL PRODUCTION
.104.4
89.6
99 5
1—
goods—
commodities
Housefurnishing
1942.
18,
July
AVERAGE CRUDE
from
business 1% less.
The industry stood at 134% of thev
average of production in the cor¬
responding week of 1935-39 and
—0.1 + 9.4 150% of average 1935-39 ship¬
—
ended
Association
regional associations covering the
operations of representative hard¬
wood and softwood mills.
Ship¬
ments were 7% above production;,
new
orders 16%
above produc-*
tion.
Compared with the corre¬
———-
DAILY
Lumber
National
the
to
Manufacturers
•
week
July 18, 1942
*
will
of
of
the
says
the
drive
measure
for
enactment
before
committees
sional
10
Congres¬
years
ago,
the League, which also says:
667
(bituminous)
—
574
2,610
2,160
2,467
'2,293
1,734
3,630
144
Pennsylvania
579
115
125
107
92
113
building and loan associations and
17
23
40
87
cooperative banks into a reserve
system to underpin local home fi¬
Tennessee
Texas
(bituminous
and
lig' 6
7
11
85
49
40
390
267
378
295
42
42
24
29
25
37
1,519
.6
Virginia
'
110
"7-———"7——"
Utati—
-
Washington
•West Virginia—Southern
tWest Virginia—Northern.—.
Wyoming—
.
".
;
226
239
2,248
1,286
2,137
1,953
1,523
889
696
760
621
444
866
118
110
105
112
61
115
tt
tt
tt
tt
tt
4
{Other Western States—
.
■
"Coordination of
nancing
similar
bituminous
and lig¬
10,760
8,135
9,668
8,381
6,575
**11,208
1,193
nite
{Pennsylvania anthracite.
941
1,164
1,189
652
1,950
the
in
a
manner
commercial
bank¬
ing coordination accomplished by
the Federal Reserve System has
been achieved to
first
Total
activities
to
3,800 savings,
some
extent the
10 years, is the consensus.
bank
system's abilities to
The
float
debentures
in
the
capital
markets to the gross total of
Total, all coal
—
11,953
9,076
10,832
9,570
7,227
13,158
C. & O.; Virginian; K. & M.; B. C. & G.;
and on the B. & O. in Kanawha, Mason, and Clay counties.
{Rest of State, including
the Panhandle District and Grant, Mineral, and Tucker counties.
{Includes Arizona,
♦Includes
operations on the N. & W.;
California, Idaho, Nevada, and Oregon.
§Data for Pennsylvania anthracite from pub¬
records of the Bureau of Mines.
[[Average weekly rate for entire month.
lished
North
Carolina, ond Smith Dakota Included
{{Revised.
"
♦•Alaska,
Georgia,
States."
ftLess than 1,000 tons.
with "other Western
700,000
dence
was
of
also
hailed
$292,-
as
evi¬
the
possibility, if need
be, to turn much more private
capital into home financing chan¬
nels
than
has
ever
been
before the Bank system's
possible
advent.
Volume
THE COMMERCIAL & FINANCIAL
Number 4094
156
Freight: Gar Loadings During Week
Ended July ID 1942, Totaled 857,067 Gars;
RailroadsSouthern
Alabama,
Atl.
revenue
&
Miscellaneous
freight loading totaled 385,872' cars, an increase
of 1,635 cars above the preceding week, and an increase of 19,306
cars
above the corresponding week in 1941.
>
Loading of merchandise less than carload lot freight totaled
87,364 cars, a decrease of 1,431 cars below the preceding week, and
a decrease of 67,316
cars below the corresponding week in 1941.
Coal loading amounted to 163,557 cars, an increase of 4,736
cars above the preceding week, but a decrease of 4,399 cars below
the corresponding week in 1941.
Grain and grain products loading, totaled 51,558. cars, a de¬
crease
of 1,951 cars below, the preseding week and a decrease, of
9,838 cars below the corresponding week in 1941.
In the Western
Districts alone, grain and grain products loading/for the week of
,
July 18 totaled 35,407 cars, a decrease of 3,620 cars below the pre;ceding week, and a decrease of 3,328 cars below the correspond¬
ing week in 1941.
Live stock loading, amounted to 9,570 cars, a decrease of - 778
cars
below the preceding week, but an increase of 156. cars above
the corresponding week in 194L
In the Western Districts alone,
'loading of live stock for the week of July 18 totaled 6,529 cars, a
decrease of 694 cars below the preceding week, but an increase of
25. cars above the corresponding week in 1941.
>■'
!/
Forest products loading totaled 53,482 cars, an increase of 2,449:
cars above the preceding week, and an increase of
8,708 cars above
the corresponding week in 1941.
Ore loading amounted to 92,249 cars, a decrease of 1,788 cars
below the preceding week, but an increase of 10,960 cars above the
corresponding week in 1941.
Coke loading amounted to 13,415 cars, a decrease of 929:'cars
below the preceding week, but'an increase of 120 cars above the
"corresponding week in 1941.
'
,
Total Revenue,
District—
Tennessee, & Northern
W.
P.—W.
R.
R.
of
Atlantic -Coast
Line.
1941,
the Southern and
except
Southwestern but: all
7,448
8,870
4,121
4,368
545
1,634
1,639
428
306
143
184
790
391
_____
39
606
331
1,221
26-
3S5
306
414
515
3,836.
4,651
3,127
25,879
19,251
16;877
14,261
26,326
21,792
10,602
7,854
261
240
152
700
667
reported increases
1942
1941
107
541
388
4,379
3.51C
1,412
1,158
1,690
1,256
listed Nevada
453
360
1,188
1,412
533
Line
469
391
10,196
9,578
23,721
8,991
8,107
23,348
.
20,139
Central..;
545
453
150
139
118,409
116,807
94,752
109,875
21,567
22,772
20,368
2,HO¬
2,960-
2,502
of
January___„.
3,858,273
3,454,409
weeks
of
February..
3,122,773"
3,171,439'
2,866,565
3,066,011
Four.weeks
of
'Four weeks of
weeks
Five
weeks
'Four
Week
of
April
of
...
Chicago, Milw., St.. P. & Pac._
Chicago, St. Paul, Minn. & Omaha
IS,260
Ouluth.
30,150
Missabe
&
Iron
Duluth-,- South Shore
&
Elgin.: Joliet & Eastern
Ft. Dodge, Des Moines
1,333
10,855
& South..
10,230
2,917
4,47.
445
916
601
56-
8,990
10,335
9,76?
527
546
581
121
27,583
27,000
22,232
5,107
435
578
473
773
3,478
3,881
Bay & Western
4,160,060
3,385,769
of June.
July
2,751
67
2,312
1,834
2,144
7,366
3.270
11,544
11,558
9,305
5,039
189
302
327
613
DO
2,742
2,08
Northern Pacific
Spokane
International.:...
Spokane, Portland & Seattle
2,665,'
1,662.
141,979
...
Central
3,351,840
148,501
26,308'
,
124,641
25,624
3,643
Bingham & Garfield...
11,-514
3,533-
&
Eastern
539
139
19,722
17,131
1,852
847
14,124-
2,389 j
2,995
855,124.
876,142
736.783
Nevada
18
857,067
899,370
730,460
North
22,366,603
19,018,947
,
r
Total
•
■
-(-
,
:,uy
>,
23,526,051
-
The following table is a summary of the freight carloadings for
the separate railroads and systems for'the week ended-July, 18/ 1942.
During this period only 45 roads showed increases when compared
FREIGHT
REVENUE
1
LOADED
AND
Union
1,6731
Total Loads
5,379
3,80
275
23
Freight Loaded
Connections,.
1942
Eastern. District—
'
Arbor,
Ann
627
1940
1942'
552 ;
1941
1,571
1,148,:
951
1,168
1,206
& Aroostook,
Bangor
1941
393
245
162
Boston
&
Maine.,—
6,011
Central
1,111.,
1,393
1,13'
1,716'
2,572
2,123.
1,135
2,043
2,005?
1,162.
980
Gulf
28
Coast
1
* 600
.;
127,875
984
Mackinac^..—
&
& Ironton—........
Toledo Shore Line:.
Trunk
Lehigh
Western-
England
New
Lehigh; Valley—
11,182
10,392
9,133
9.672
,9,352
374
450
96
128
2,773 '
1,576 "
359
Island..
1,798
273
''
167
3,265
159
-
2,664,
,
10,253
2.305
3,128
6,372~
2,466 /
4,593
Central
47,122 J
Lines.......
9,591
N., Y„ N. H. & Hartford...-.—...
New-,York, Ontario & Western—
York! Chicago &,St. Louis—.,
'New
N,
■'j 969
.
,
484
.7,897
4' ;
Marquette.
Pittsburgh'
&
—....
Shawmut,..:
395
1,217
345
———
•5,842
Wheeling & Lake
6,77 5
Erle-
5,679 J
9,305
5.673
•
;«•
786
'
424
1,144-
"
235
1,875
2,855
2,35:
2,107
1,675
2,248
1,72
287
347
238;
701.
561
503
197.
24
158
173
174
451
32
323
6,210>
5,757
■
6,229"
34
S
.
.
602
3,057,;
'
7,009 /
4,928
190,051
10.084
-
294
•
886-
611
V" 148,905
2,466
1,055
11,636
;
157,322
4,651
4,241
219,752 V 218,161
Allegheny District-*-•
Akrom Canton .& Youngstown_>
■
754
&, Ohio—41,694"
Buffalo
Lake
Creek
Cambria
&
&
Erie,
6,870
*3li
Gauley
Indiana
Cornwall
6,599
323'■
510
1,072
25,136
302 '
Ligonier Valley
Long-Island
-
Penn-Reading
Seashore
Pennsylvania
System
Reading
Co.u.___.^
1,952
7,164,
8,226
6,789
652
584
309
...
921
—
Union
(Pittsburgh)
Western Maryland-
3,922
Total..,
15
185,926
Chesapeake
Norfolk &
Virginian
-
■.
-
&
122
.
48"
-
•
■
bates i the?
7,749
5,45'
7,059
3,12!
6,642.
3,536.;
5,549'v
5,178-
3,89
3,392
7,177
4,75!'
134
156
137
32
8!
54
16
33
32
4>
62,293
42,90:
5,261,
;1
i
54,259"
45,676;
and
3.90; South Dakota,? 4,900 and
12.44; Texas,* 27,685 and 8.63? Utah,
3,395 and 12:36;; Washington, 13,012
a.
figure which indi-,
—
—.—
.
.
Tons
45
Apr.. 11
4
■
3,193
nOrders
Apr.
91,150
70,028:'
64,911!
61,657
17,845
14,363
27,673
24,215
May
May
,
,
169.249
153,269
428,322.
S3
101
404,199
94
101
135,273
9^„_
156.201.
388,320
152,569
371,365
130,510'
I
2
143.427
360,221
7,779
6,825
119.142
141.745
May.. 23^
120.224
140,650
132,901
288,516
120.374
283,390
110.226
June
13.
20—.—
4,4,40 1
48,134
6,370
1,961"
21,965
J"'y
14,875
6,441
1;697
23,013
,
115,300
4a_
125,016
117.924
248,594
,
1 ?0,?59
94,257
100,337
by the Commodity Credit: Corpo¬
ration/, effective- July? 21i Ex¬
porters
permitted to ■ regis¬
were-
99
99
98
that
date,
said
"In-order
to
provisions4 of
97
96
69
95
comply
the
with the
Appropriations
be registered
after
72
223,809
Department,
Act'for* the 1943 fiscal year-of the
81
94
69
93
72
-
the
which-added:
77
.
274,512
98,766
104.178-
100
86
82
316,443
113,059'
93 :
90:'
?
336(530
9,308
-13,634;
101
153.442
12,132.
20,650
Cumulative
129,834
139,026
3,007
23,344
5,463
100*'
145,000
25..
19,248,
28,979
59,467
Current.
436,029
May. 16—
25,025
The U. S; Department of Agri¬
announced ' on
July 21
culture^
ter rsales of; cotton for
export until
!
May, 30.,
June,,, 6.
56,049
Percent of Activity
r
Tons
161,888
Apr., 18—.
1,810
23,455
End$ Export.Cotton Sales
'
termination of ? the Cotton v Sales
faytr Export * Program administered
ACTIVITY
Remaining
Tons
Apr.
2,425
4,568
—
Prnduetinn
Production
Received.
„
3,272
28,026
....
...———
REPORTS—ORDERS, PRODUCTION, MILL
1942—Week Ended^-
62
36
,149,843
was
made- in these
columns, off July* 16; page-192.
.
a
on
the? time: operated.
These
advanced to equal
100%, so that they represent The total
16,748
166,210
Previous^reference To the scrap
rubber-drive-
statement: each week: from. each
production, and also
Orders
Orders
Period
525
157,583
and !
-
1,125
198,972
and!
of* the total ini
UJ
Unfilled&
731
4,211
Ohio,; 22/165(5 and' 6.42;,Oklahoma^
12,453: and-11:19? Oregon, 10.221
and? 18.75;;
Pennsylvania/ 19,322
figures revised.
program includes,
STATISTICAL
1,702
20,442
Montana^ 4;446 and 15.91; Nebras¬
ka,. 7,994tandil2.15; Nevada, 16,657
and - 30>13? New? Jersey,,
6,394*' and
3.07; New? Mexico,- 2,327;and i 8.75.
"North;Dakota, 5,066;and 15:78;
16!
7,085
2,026-
activity of the mill' based
are
June; 27—
Western——
Total r__———
3,761
9,061
69,507
dustry, and its
12
52,
"Iowa,-. 12,105; and 9.54; Kansas,
13,569. and \ 15.07; Michigan, 20,030
7.62;, Minnesota, 16,393 : and
11.74;: Missouri/ 13,521! and! 7.15;
and;
i
48'
and 18,17.
10,83.
261
2,419
11,517"
5
District—
Ohio.
4,458
17,559
74.
9,059
2,429
■■
14.98
!
95<
2,593
.....
Orleans.
June
Pocahontas
1,283
14,412 :
179
The members of this Association
represent 83%
23
19,185
235
1,547
—84,53814,183
21,024
Lines,.
!"*2"
1,373
643
Pennsylvania
2,496/
and
paperboard industry,,
22,455
6,034
per
"We giVe? herewith latest figures received
by us from the National
Paperboard Association,. Chicago,
111., in relation to activity in the
•1,032
33,412
270*
135
.......
&
794
43,914 .*'•
1,950;
Central R. R, of New Jersey...——,,
Cumberland
1,001
industry.
Baltimore
&
782
4,293'
16,823;'
102
•
figures
Bessemer
4,710
17,153:,
member of> the orders and
Total;
pounds
14.99;- West. Virginia, 4,314
4.54; Wisconsin, 13,556' and
8.64; Wyoming, 1,600 i and 14.34;
Hawaii, 1.464 and 6.76, and Alas¬
ka, 20'and'.55."'
1,34 J
12,469
5,147
202,
-
Weekly* Statistics Of Paperlsoard Industry
1,095
29
551
2,0*
2,586
!
Note—Previous year's
14,00 V
;: 1,490 ?.
3.73
and (10.38; Delaware,
846.and>6.3:4;
Idaho, 4,328. and 16.49; Illinois,
27,800 • and: 7.04; Indiana,. 14,008
4
1,87
2,687
3f>
2,47-1
16,287''
7.4311
24
2,094-!
1,530
17,345
>2,577
4,639
>
-
780
191
2,339
,
55.43^.
19,031.
"
/
and
"Arizona^ 3,737( tons
♦Previous week's figure.
48^
v.
55,339 •'
438
8,940
:
805
—
Pittsburgh,- Shawmut. & Northj.——
Pittsburgh &, West Virginia—
Rutland
5,779
377
Susquehanna &■ Western^—
Pittsburgh. &. Lake Erie.
Y:,
2,54V
28
1,277
7,819 :>
136
1,939
393
Pacific—
Tctal
tons
4.54;
68,351
4,361
Southwestern—!
New
2,61*
2,750;
82,428
10,290
,
288"
9,078
1,277
&
10,89'
5,650
Pacific——
-
1,736
2,609
....
Southern.—
Wichita Falls & Southern—..
Weatherford M.: W. & N," W._.
2,140
2,434
'
40,460 *•
12,207 '•
;
6,993
pere
•
12,979
1,57(
,
2,69*>
-
2,065.
2,246
54,308
8,765
;
3,106
*
2,645
'
'
New. York
-168,v
8,684
6,223
,
—'
8,205
2,172
2,315
......—_________....
Texas
13,804
11
110,769,
160"
.
4,240
Valley
Louis
Texas
16,62?
(
6,90
,
1,3211
14,187
229
130,413
2,424
&
Missouri
1,484
•
'
collection
per
capita;
California,
40,247. and; 11.65; Coloradd, 5,800
^uanah Acme & Pacific.—
St. Louis-San Francisco..
St.
expressed
the
pounds.,
Arkansas..,
Missouri-Kansas-Texas Lines—
3,690
,
2,922.
15,308*
6,412
8,780
Maine(
CentraL—....—....—......
Monongahela
1,245
195
13,682
>
16,704i
2,218
_________
—
Montour
2,19(>
11,030;
3,716
.........
Hudson - River.....——
Lehigh &
2,517;
5,695
12,895
.......
.Grand
1,375
7,397
287.
—
Erie'.
1,513V
1,758
Toledo
Detroit,
Detroit &
•
Missouri
11C
260
•Delaware, Lackawanna &£ Western—
Detroit
2,428
7,522
Hudson
&
13,98r
9,417
,
District-r-
Linesx.
Kansas City
Midland
6,529
Vermont---.-----^-—-r———,
v
,
,
273
2,078..
Louisiana, & Arkansas
Litchfield & Madison.
1,982
35
23,755
""
...
International-Great Northern.
Kansas, Oklahoma & Gulf
69
1,350
74
11-
57:
0-
439*
16,058
73
150*
579
26
410
15,208,
366
814
30,118,'
227
.
899
1,809
28-
31,785.
......
13,239
7,292
1,669
23
Indiana......—
Central
'Delaware
8,971
1,512..
_
2
1,459
"
'Chicago,-Indianapolis & Louisvillei.—
512:.
2,061"
Pacific
Burlington-Rock
■;
Received from;
with-
Arkansas, 5,600: and 5,75;
District of Columbia,, i;Q91l and
3.29; Florida, 7,772 and 8.19; Geor¬
gia,
5,462
and
3.50;
Kentucky,
8,191. and 5,76; Louisiana,. 6,273
and .5:31;
Maryland/ 4/447. and 4.88;
Mississippi/ 4/730? and 4,33; New
York, ,19,385 and 2.88. North Ca¬
rolina, 8,264 and 4.63; South Caro¬
lina,, 4,128' and .5151; Tennessee,
8;504;and 5.83*; Virginia,* 4,314 and
1,60
2,486
&• Western
Southwestern
Total Revenue
Railroads
Co¬
also
capita;
3,039
636
-
Pacific System..
Jtah—
Western
FROM, CONNECTIONS
(NUMBER OF CARS)—WEEK ENDED- JULY 18
^
Peoria
Total
RECEIVED
5,280
10,C>2
4,212.
3,074
_
Pacific.^.....
& Pekin Union
Southern Pacific
(Pacific).
with the corresponding week last year.
;
11,686-
2,536t,,
1,091
Northern
Western
Toledo,
/
95(
773
Peoria
'
10,40
705
1,008
11
July
'
13,066
8
»
1,639-
July
Chair¬
Petroleum
Ickes
capita; Maine, 3,179 and.7.51;
Massachusetts, 11,083' and 5.13;
New Hampshire, 2,412 and 9 80;
Rhode Island, 1,964 and 3.90; Ver¬
mont, 2,153; and 11.99. Alabama,
3,17
10,272
2,515
13,330,,
Illinois...._
637;16r
of
stockpile,"
Board
"Connecticut, 3,607 tons and 4:22
7,979'
4,320*
709
664--
of
and
The tonnage and per capita col^,
lections, by State, follows, accord¬
59,52f
3,330
Week
rubber
Production
Nelson
try for its part* in the drive.
5,009
59;560
22,113
3,916)
731, •
•ort Worth & Denver City^......
-Week
War
per
2,896,953
740,359
substantial contribution
and praised the petroleum indus¬
Western.District—
Colorado & Southerns.,—______
3,510,057
Boyd, Chairman of
ing,To the Associated Press:
;
Total
2,679
,
very
satisfaction
2,26
8,188
a
ordinator
9
2,152
R.
the nation's
man
70
7,339
Chicago
753,855'
4
j.
12
l,ake Superior & Ishpeming
2,495,"212
'
to
4,36-;
Minneapolis & St. Louis.............
Minn,1, St. Paul & S. S.iM
Territories—2.88
Fetroleu
"is
205
-
and
m
Industry War
Council, who made- the report to
the President, said that the total
3,191
9,716
3,555
-
as
pounds.
12,766
3,109"
21,260
9,058
___
12,571
19,389
3,888
26,264
1,286
Atlantic.....
Great Northern.
jreen
23,802
3,269
Range^.
2.489,280
2,793,630,..
4,170,713
the> States
William
_
2,465,685
3,351,038/
........
May...—
78C
88,002
the
.
3,215,565
;
,
839
District—
Chicago & North Western.
Chicago Great Western.
-
weeks
6,10)
840
The
tons.
report/ however,
first in per capita
30.13, pounds,: New
York State was sixth in quantity,
with 19,835 tons, but was next to
last in per capita collection among
19,687
851
86
(
247.
5,851
8,094
23,120.
614
Winston-Salem Southbound...
California with 40>
contribution,
321.
Richmond, Fred, & Potomac
System
na¬
a
all other States with
the amount: of rubber
1,300
1940
Five
,
was
2,704
17,601
'Four
,
to
3,383
_______
1940..
over
Leading
respect
turned in
3,301
;
Northern!:.
Northwestern
repTesented
202
Southern...
Air
2,815
-
leum Industry War Council re¬
vealing that the scrap rubber col¬
lection drive yielded 454^55 tons.
The campaign was conducted be¬
tween; June 15 and July 10. This
tional, pound per capita collection
of 6.87;
25,665
...
on
the report of the Petro¬
accumulation
95
2,053
2,305
districts
827
148
4,075
...
Chattanooga & St. L......
Tennessee
291
855
2,572
Mississippi Central.
Seaboard
2,947
256
183
'936
Macon, Dublin & Savannah
Southern
2,751
170
26,554
Nashville..
•
Piedmont
1,294
330
Illinois Central System
Louisville &
Norfolk
1,550-
1,218
Florida.
Nashville,
6,327
3,927
'
1,614-,
31
<
President! Roosevelt» issued?
July 21
1,191
All districts reported decreases, compared with the correspond¬
in
1,045
424
Gulf, Mobile & Ohio
<
ing week
224
1,766
1,085
9,081
...
&
377
2,820
894
4,658
.
Florida East Coast...
Gainesville Midland
Georgia
220
710
423
...
Southern
Georgia
346
^
Yields 454455< Tons
1941?
909
.
4,207
Columbus & Greenville
&
1942"
10,542
Clinchfield
Durham
1940*
1,033
849
Western Carolina
&
1941'
1.044
Central of Georgia.
Charleston
Connections
349
Ala
Scrap Rubber Drive
Received from
1942
Atlanta,- Birmingham & Coast.
,
'
383
Freight Loaded.1
freight for the week ended:July 18, totaled
857,067 cars, the Association of American Railroads announced on
July 23.
This was a decrease below the corresponding week in
1941 or 42,303 cars or 4.7%, but an increase above the same week
of 1940 of 126,607 cars or 17.3%.
'
Loading of revenue freight for the week of July 18 increased
1.943 cars or 0.2% above the preceding week.
'•
^
Total Loads
Revenue
Loading of
CHRONICLE
92
59
Department;
no
further sales
may
under- this program
21.
Purchase orders
July
covering sales registered prior to
that' date will 'be honored by the
-
91,
GCG in accordance-with the termsand ; conditions of the
program,
Noferr-UnfjUed.orders-c
tbe -prior- - week -plus orders received,? less -production; do not
but it: is essential That1 these
pur¬
necpssarilv eoual the unfilled orders et the close.
Compensation Jon delinquent report.%,
chase orders be submitted as
made for or filled stock, and other items made
rap¬
necessary .adjustments of unfilled
orders.
idly, as, possiblev" '
July
lli
.....
July? 18——,
'
92.481?
77.996
103,559"
114,917
236.536 *
52
90
226,341
71
90-
THE COMMERCIAL &-FINANCIAL CHRONICLE
384
York
New
Trade
an
additional
Associated
City, has on display 68 rare books
the history of accounting, some
of which date back to the 15th
on
Kleeman,
President,
anr*>unced that the
collection, which is a part of the
S.
Arthur
Century.
he
While
is
Denney will assume active direc¬
tion of the trust department, with
Harold
Vice-President
dale
served
has
of Accountancy,
certified
Companies
been
Herwood & Herwood,
public accountants, had
loaned to the bank for a
Vice-President
for
Division
of
owned
by
showing until Aug. 1.
The bank
invites the public and accountants
especially
inspect
to
the
collec¬
Trust
A
B
President of Fed¬
of Cleveland,
M. J. Fleming,
Reserve
Bank
the admission to mem¬
announces
bership in the Federal Reserve
System of The Citizen's Bank,
Cardington, Ohio.
The bank was
incorporated in 1894 with a paidin capital of 25,000, which was
increased to $50,000 on Nov. 1,
the
Union
Ind.,
of
Federal
June
Louis
on
ident;
G.
H.
Ruhlman,
VicePresident; E. M. Willits, Cashier;
F. M. Hartsock, Secretary, and
reduced,
K.
Heacock, Assistant Cashier;
P.
ber, organized in July, 1929,
a
capital of $30,000, surplus
Oak Park Trust & Savings Bank,
Oak
Park, 111., and last year Pres¬
ident of the Trust Division of the
"
The
-
ship of the Federal Reserve Bank
of St. Louis to 444 and marks the
seventh State bank in this dis¬
first of the year.
i
1
of
"One
Tax Bill
Hearings
the hearings now being
Before
the Senate Finance
on
the $6,271,200,000
conducted by
.Committee
bill
tax
by the House on
to the Treas¬
passed
July 20 opposition
ury's plan to collect income taxes
at the source was voiced on July
by Beardsley Ruml, Chairman
the Federal Reserve Bank of
27
of
who presented a plan
said to have been endorsed by
several industrialists and others
New York,
plan,' Mr. Ruml
pointed out is that it would enable
a taxpayer to pay his entire cur¬
rent year's income taxes at a with¬
holding tax rate much lower than
is possible under the Treasury's
program which superimposes a 5%
the 'pay as you go
withholding tax upon the previous
year's income tax payments.
"Under the rates for individual
income taxes
approved by the
as
House, Mr. Ruml pointed out, the
the
in
taxpayer
would
brackets
lowest
be
surtax
subject
to
a
of col- 24% tax on income in excess of
lecting individual income taxes. his individual exemptions.As to his proposal advices to the
"However, it was pointed out
for
a
pay-as-you-go system
New York "Journal of Commerce"
bureau said:
plan, it was sug¬
from its Washington
this
"Under
that
the
under
plan,'
the
'pay
as
withholding
you
tax
1943
of
out
taxes
earned
income
during ,1943.
"Since
the
consider
does
not
receivable,,
Mr.
Treasury
taxes
Ruml said, the
1942 taxes could be
written off the Government's bal-r
.
ance
sheet 'without the change
of
and
sur¬
opera¬
tee
on
•
Association
Bankers
can
nounced
by
President of
Penick
an¬
Division.
the
Mr.
the
President of
is
is
W. B.
exempted from in¬
go
rate
for
propose,
duration,'
the
new
on Dec. 31, 1941.
The
70-page book contain¬
ing many tables and charts show¬
ing the resources and liabilities Of
the various classes of banks in na¬
tional totals and by state and com¬
highs
is
survey
a
based on these,
earnings and
ratios
parative
tables
also
and
on
The purpose of the sur¬
is set forth by the committee
expenses.vey
troduction
follows:*
as
income
net
"Meeting the problems
important period
vitally
about
our
tions.
be interested in
will
You
your bank's ratios as to
liabilities, earnings, and
with the averages in
your
state as well as with the
averages in other states, in order
to secure a comparison: of your
on every
resources,
expenses
.
operations on a nationwide basis.
We also believe that the compara¬
that
under
empt
the net
result would
be
addi¬
an
tional
$5,000,000,000 in revenue. In
the alternative, I propose a sales
raise
to
tax
the
about
same
amount.'
he
said
in
was
favor of Federal taxation of future
of
issues
State
State
and
bonds and believed
municipal
all past issues
ought to be taxed at least for the
duration of the
Division.
Bank
of
consists
mittee
President
The
Carter,
Carthage.
of
Bank
com¬
E.
W.
Carthage, Mo., Chairman; John B.
Byrne,
Seidman
"Mr.
Hartford-Con¬
Hartford,
President
>
necticut
Trust
Co.,
f
Conn,; Joseph F. Hammond, Presi¬
dent Citizens Trust Company, Paterson,
N. J.; B. D. Mitchell, Presi¬
Bank & Trust Co. of
dent Union
Kokomo,
Ind.;
Travis
Oliver,
roll collec¬ President Central Savinks Bank &
tion tax, he proposed that indivi¬ Trust Co. of Monroe, La.; and R.
dual income payments be collected B. Patton, Executive Vice-Presi¬
in monthly instalments, beginning dent American Exchange Bank of
next Oct. 1, so that the last quar- Henryetta, Okla.
was superimposed.
er of this year's tax would be paid
"The plan, according to the New
by December and the collection
York banker, would also make it would
carry forward from there, j
possible to put tax payments on a
"The witness objected to reten¬
current basis without the necessity tion, of the
present capital stock
for collecting two years' taxes in tax
and
expressed the opinion
one."
:
" \
In June of this year; man-days
that
a
maximum
levy of 15%
from
war
production
by
The Committee also heard on ought to be fixed on long term lost
July 27, Truslow Hyde, Jr. of capital gains, with a maximum of strikes were 9/100 of 1% of total
man-days
worked, William H.
Scarsdale, N. Y., who representing 30% on short term gains.
"He opposed proposed changes Davis, Chairman of the National
Josephthal & Co., urged the Com¬
Labor
Board,
announces;
mittee to amend the bill to permit that would put all taxpayers on a War
public utility companies to deduct calandar year basis and said pro-; which1 notes that the strike statis¬
from
their
taxable
income the vision ought to be made to permit tics were gathered by an inter¬
could
be
made
19%
for this tax¬
war.
"Instead of the pay
War Industry
Strikes
■
a
single penny.'
system, Mr. Ruml said,
would do away with the necessity
"Such
of
a
a
taxpayer paying two years'
taxes
in one year and
income
would also
permit full use of the
withholding tax.,
.<•
'
the plan, Mr. Ruml
"As part of
suggested
that
every
•,
dividends
taxpayer
tentative tax in
March which would estimate the
According
should declare a
amount of taxes which he
earn
in
year.
in
payer,
know
a
the
would
Because the tax¬
many cases, can
not
exact amount he will
his tentative tax
should be based upon income for
earn
in the year,
previous year, Mr. Ruml said.
"At the end of the year when
the amount of income could be
the
paid
on
to
preferred stock.
the
Associated
Hyde contended that
such dividends should be similarly
Press
Mr.
classed
bonds.
change
ment
interest
with
He
estimated
paid
that
on
this
would cost the Govern¬
$70,000,000
in
potential
taxes, which he said was "a cheap
plan
also
provides for a withholding tax
^which would conform to the nor¬
mal and surtax rates
approved by
a
revision to permit co¬
on
such
property from their tax¬
able incomes."
Congress so that at the end of the
.
At the Committee's hearing on
would have his en¬
paid up out of the
July 27 M. L. Seidman, Chairman
of the Taxation Committee of the
year, a person
tire
tax
bill
„
of profits, making it
taxable income.
appreciable taxes could
be obtained by fixing a personal
income ceiling of $25,000 a year*
any
President Roosevelt
made such
suggestion to Congress.
"
stead
operative apartment owners to de¬
duct taxes and interest payments
out
corporation
"Mr. Seidman ridiculed the idea
that
were
advocated
pay-as-you-go
reserves
of
deductible from
advices said.
"J. Frederick Eagle, a New York
ascertained, Mr. Ruml's
plan calls for adjustments to cor¬ attorney, and Henry Forster, a
estate operator,
rect the tentative tax to the actual Manhattan real
"The
establishment
price to pay" for the maintenance
of public utility credit.
The same
actually
tax liability.
the
in
'If
all
incomes
a
•
$25,000
confiscated in¬
proposed
this bill,' Mr. Seidman said, 'I
completely
of being taxed as
estimate
Government
the
collect
an
which
is
would
additional $500,000,000,
less
than
1%
of
the
$53,000,000,000 deficit.
"Secretary of the Treasury Mor000,000 a day on the war.
If
we
confiscated all income over $25,a
enough
year,
we
money
to
wouM
pay
the
get
onlv
expenses
committee
on
war
of
rep¬
strike statistics consisting
resentatives of the War, Navy
and
Departments,. the: War Pro-,
the Maritime Com¬
Board.
The term "strike" is used to in¬
Labor
duction, Board,
mission and the War Labor
,
clude
stoppages of
all
work due
disputes whether strikes
lockouts. The. following table,
labor
or
by the War Labor
issued
Board,
of the
a
detailed picture
strike situation as it affected war
gives
production during June, compared
with May of this year:
June, 1942
May, 1942
254,653
137,300
275,000,000
Man-days lost
242,000,000
—9/100 of Yfo
6/100 of 1%
—
worked
Man-days
genthau said 'we are paying $150,-
uuu
departmental
to
over
anniversary
official
Hoover's
services
President's
The
letter
congrat¬
ulating Mr, Hoover said:
"My deat Mr. Hoover;,
extend
"I
to
my
you
personal
of greetings on this day
message
which marks
the
occasion
of
the
graduation of the 19th class of the
FBI
National
Police
Academy.
During
administration I have
my
establishment
the
witnessed
by
of the National Police Acad¬
as an integral part of the Fed¬
Bureau
of
Investigation.
you
emy
eral
Under
direction and inspir¬
has made an
your
this
ation
academy
important contribution to the po¬
lice
nation.
the
the
You
have
teachers
of
trained
who
have
carried the benefits of their train¬
ing to more than 100,000
ican police officers.
"This
Amer¬
month, I
am
advised,
7th anniversary of the
marks the
.
tive tables, as well as the informa¬
is ex
tion given by charts and graphs,
this bill because of
will be helpful in improving bank
personal exemptions or credit for
dependants.
This is to be condi¬ management and increasing earn¬
tioned upon the present normal ings."
tax remaining at 4% instead of
Copies of the survey have been
the proposed 6%.
I estimate that mailedto all members of the
of
dollar
Mr.
Academy
fact that July
25th
with the Department of Justice.
State Bank Research in the in¬
on
tax-i comparing
than 60% of all families, hH
'I
of
the
ing agency in the field of counter¬
espionage, counterrsabotage and
in other fields opposed to sub¬
versive *and fifth-column activi¬
dividual income taxes.
"
to
rose
Police
in view of the
banks and their opera¬
eluding half of the nation's wage
he said, 'a 10% war tax
all
banks
,
Mr; Seidman declared that
were
National
marked
Penick,
H.
James
,
be obtained from wealthy
to
FBI
State Bank Research of the
State Bank Division of the Ameri¬
the occasion of the
on
graduation of the 19th class of the
founding pf the FBI National Po¬
lice Academy.
When I issued the
no
rebates,1
10% allowance.
FBI "to the forefront
the law enforcement
all
of this
in the
recom- history of banking necessitates our
i being equipped with information
made
"Remarking that there appeared
no more revenue of any size
that the income tax for payer since he would no longer be
1942 be dropped and that instead concerned with
payments on his
w; of paying 1942 income taxes in previous year's income taxes, upon
1943, the taxpayer would pay his which a 5% withholding tax rate
gested
House
post-war
Treasury
has
.
big advantages of
the
The
a
earners,
: :
come.
tax
to be
more
Senate Comm. Holds
100%
a
the
among
agencies of the world."
tion of state banks of the Commit¬
;
see
for
the
but-
mended
payers,
in¬
his
from
withheld
amounts
\
rather
profits
provision
r
,
.
:
..
would
declared.
join the System since the
trict to
'I
bill's
House
to
with1 a 25%:
post-war credit than a 90% tax
with a 10%
post-war credit,' he
Union
member¬
total
the
brings
the
of
addition
>
excess
excess
Assistant Cashiers.
ther Grannan,
the condition
record
33%% if the
profits tax were re¬
45%
tained.
Cashier; Donald Bullock and Es¬
Bank
Seftenberg,
Vice-r
President and Trust Officer of the
D.
Chester
90%
the
from
of
figure
T. Prather,
Vice-President;. John
of
chartered
"Recommending several changes
corporation taxes, the witness
urged that combined normal and
surtax rates
on
corporations be
The new mem¬
July 22.
of the annual
Completion
vey
upon
in
St.
ing
26
would
burden
collections from pay rolls.
has
of
$70.
Total. deposits of the bank
$20,000, and total resources of
at
the present
time are about
Its officers are: J. J.
$550,000.
The officers of
the $897,822.
bank are dine Sherman, Pres-^ Hoffman, President; J. W. Strange,
value
Completes Survey
'impose a
Worthem Co., bankers, at Little
business al¬
Rock, Ark. It is indicated that the
ready overwhelmed by govern¬
study shows that the resources,.in¬
mental
requirements.'
Business
vestments, and deposits of State
firms would be charged with the
the
of
a member
Reserve
Bank
became
dividends
terrific
Loogootee,
Bank,
5% deductions at
pay checks, interest:
source on
and
Budget-Finance Committee of the
Oak Park, etc.
1921, and decreased to $35,000 on
6, 1934, .by reducing the par
of the shares from $100 to
income taxes by
American, Chicago and Wisconsin
Bar Associations, Board of Gov¬
ernors
and
Chairman
of
the
The
individual
of
collection
advance
College and attended the
University
of
Wisconsin
Law
School.
He is a member of the
July .25
Hoover,
Investigation, for his "leadership,
foresight and direction" in bring¬
and
approved proposal for the
House
Law¬
from
laude
cum
ABA
"Mr. Seidman contended that a
He obtained
on
Edgar
The President sent the letter to
-\'V
tax.'
American
the
J.
,
Director of the Federal Bureau of
Mr. Hoover
to reach upward of
30,000,000 persons instead of the
7,000,000 he said now paid Federal
as
Illinois of the
Bankers Association.
his
and
Association,
by Secretary Morgenthau.
sufficiently
Trust
Wisconsin
the
rence
tion.
eral
of
ident
July 23
on
measure
Pres¬
as
the bill presented to
on
the Senate Committee
adequate,' the witness said the
ought to be broadened
Mr.
the officer in charge.
as
statement
in¬
than six billions, 'totally
more
Teas-
T.
congratulated
where in the current issue to the
indicating the views presented
by Mr. Seidman said:
"A survey showed the commit¬
tee to be widely divided on the
sales tax.
Calling the House bill,
estimatedPto increase revenues by
absence
adoption of the
by the House on July 20
appeared in our issue of July 23,
page 281.
We are referring else¬
in
President Ellis H.
from the bank,
Seftenberg
Herwood Library
of
leave
on
FDR Lauds Hoover of FBI
President Roosevelt
Reference to the
tax bill
Press advices
raise
three
for
Government
days'."
$5,000,000,000
revenue.
its Illinois Bankers Association, has
Rockefeller Center office, Sixth been ordered to active duty as a
Avenue at 48th Street, New York Captain in the Army Air Forces.
at
Co.,
Trust
Colonial
The
of-- the
pro¬
posed that the committee amend
the tax bill by removing personal
income tax exemptions so as to
Bonks, Tiust Companies
Items About
of
Board
Thursday, July 30, 1942
(estimated)
Percentage —Time
in
time
to
lost
worked
Number
—
..
of
strikes
Number
involved
of
144
192
progress
Directive
.
r
47,800
1939, desig¬
Sept. 6,
ties, the FBI and the police of the
nation
were
ready for prompt
action.
"The FBI and
local, county and
agencies
have joined in an effective and
successul
undertaking in main¬
State
law
enforcement
security
While our
military, Naval and Air Forces
are engaging the enemy wherever
they may be found, the FBI and
its cooperating agencies are find¬
ing the enemies within our gates
taining
internal
our
against enemy agents.
who
seek
and
our
to
FBI
to
are
men
liberty
our
work,
This
and women of the
doing, is vitally essential
our
in
effort
war
our
insure
destroy
freedom.
which the
order
to
victory.
"I wish to add my
personal con¬
gratulations to you, since tomor¬
row, July 26, 1942, marks the 25th
anniversary of your official serv¬
ices
with
United
the
States
De¬
Your leader¬
ship, foresight and direction have
brought the Federal Bureau of
Investigation
to
the
forefront
among all the law
enforcement
agencies ,of
the world.
Your
partment of Justice.
services to
our
have
nation
citizens and to our
been
conspicuous in
efficiency, in effectiveness and in
results.
I
am
sure
that
all
our,
people have just
cause
to be
grateful to you for your fine work
and splendid leadership, both in
peacetime and war."
Industrial Employment
In Illinois Drops
g
Reports from a sample group of
6,542 Illinois industrial establish¬
ments
indicated
that
employ¬
dropped off 0.2% while pay¬
ment
rolls increased 0.8% between May
and
June,
ment
according
issued
July
23
to
by
state¬
Francis
a
Murphy, Director of the Illinois
Department of Labor. These es¬
tablishments
employed
804,558
B.
persons
in June, or approximately
one-third of the total number of
non-agricultural employees in the
State. Since this sample group of
reporting
establishments
is
weighted heavily with manufac¬
turing industries, the "all report¬
ing industries" changes are not
entirely representative of the em¬
ployment trends for all lines of
industrial
activity
within
the
men
84,775
of
nating the FBI as the coordinat¬
State.
@FedFRASER