Full text of Commercial and Financial Chronicle : July 31, 1947, Vol. 166, No. 4616

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/J
4,

-*

ESTABLISHED 1S39

~Th e

Financial
Reg. U. S. Pat. Office

Volume

166

Number 4616

No! This Was Not

a

"Do Nothing"
Session of Congress
By

f

CARLISLE
■

New

Rapid Nationalization
Oi French

Correspondent

International observer,

*r.

that

notes

first

Republican Congress
blocking radi¬
cal legislation and holding down
appropriations in addition to rec¬
ognized accomplishments.
achieved much in

WASHINGTON,

C.

D.

just ended, was a do nothing Con¬
There

gress.

were

more

than

degree of nationalization

\

moting

will be limited

PARIS, FRANCE.—France

far-reaching

*

try's

*

-

-

6,000 bills and

ture

resolutions

the

introduced

and prosperity of all nations.

Says U. S. should
exchange controls, and

foreign markets. Points out maintenance
of sound
money conditions as essential to world trade rehabilita¬
tion and warns
foreign trade restrictions lead to regimented
economy.

is undoubtedly gripped by the deepest

social crisis in her long history. With the

entire

economic

peace

take lead in removal of trade barriers and
aid in movement for free

fifth to one-third of
nation's productive facilities.
and most

Prosperity

WRIGHT

Dr. Wright stresses importance of unrestricted
international trade
and free gold and foreign
exchange movements in creating and pro¬

mainly by factors of
competition and profitableness of
respective industries. Holds that
state
control, carry-over of prewar trends, already embraces one-

The

—

first session of the 80th Congress,

By IVAN

on

Asserts

that

coun-

<s>

The battle for free markets
is as old as man's
struggle for free¬
dom.
Anyone familiar with the elementary outline of the

history of
civilization,

-<e>

fu¬

know

them.

and

of

lieve

re-

ing

the

to
down

prices,

to

tion; it did not
extend

•

social

increase

the

Bargeton

•

■

security

benefits,

minimum

wages

not

provide

for

socialized

medicine.

This

sion"

life

what

written.

rather

you

on page

so

31)

anfong

duration.

a

nance.

United

offing.
Most of them were quite convinced
enough at hand to show very plainly in the

was

chief
question in ^controversy
the depth of the downward turn and its

was

When

in

some

sectors

of the

Dr.

Ivan

the

of the

-

controlled

Government,
Premier

headed
Paul

by

So¬

ployers but against their

em¬

own gov¬

ernment and its wage policy. The

this

most

serious

continued

It

Ramadier.

warfare not against capitalist

in

"on."

enterprises, and

social

on page

was

not until

relatively recent weeks that these

official experts began to see that their
prognostications
in need of major revision.

were

not

They have, however,
been particularly abashed
by the degree in which

time has discredited their earlier
appraisal of the state
of affairs.
Most of them are
nothing if not "flexible"
in their thinking about such
matters.

They now are
merely pushing the date of the general business rever¬

a

Established

:enc

world

must

due to

our

from'

to

be,

a

large part,

wealth-producing
is

not

United States.

tries,

such

strides
the

in

freedom and the initia¬

resulting therefrom. Evidence

freedom

in

as

fast

barriers

prise.

to

power

confined

to

In the older coun¬

of

and

raising

living have fol¬

upon

the

removal

trade

and

free

(Continued

on page

27)

future, but it is hardly necessary to
damage that would have been done had
(Continued

con-

on

page

STATE

23)

State and

1927

Municipal

MUNICIPAL

and

Bonds

BONDS

INVESTMENT SECURITIES

Hirsch & Co.
and other Exchanges

BOSTON

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

Troy

HAnover 2-0600

PHILADELPHIA

Baltimore

Teletype NY 1-210

Bond Department

64 Wall Streat, New York 5

Members New York Stock Exchange

Albany

Buffalo

THE NATIONAL CITY BANK HART SMITH &

Dallas

OF NEW YORK

Harrisburg

Cleveland

London

Geneva (Representative)

Pittsburgh

Scranton

Williamsport

Wilkes-Barre

Springfield

Woonsocket

SERVING SOUTHERN CALIFORNIA

Bood

Dept. Teletype: NY 1-708

$1.10

Conv.

90c

Investment Securities

Underwriters and

5.

SPRING

ST.

Corporate Securities

TRInlty 5 761
ANOELE5

14

;

•

PASADENA

MEMBER LOS ANGELES
>

•

$1.25

Established

REDLANDS




New York
Cincinnati

Chicago

Columbus

Conv.

Y.

1-395

Montreal

THE CHASE

Assn.

HAnover 2-9980

Bell Teletype NY

New York

Toronto

90c

Conv.

Preferred

*Pro$pectua

on

&

Members New
120

Denver

Toledo

Buffalo

NATIONAL BANK
Of THE CITY

OF

NEW YORK

Public Service Co.

and Dealers

Analysis

upon

request

*

request

York Stock Exchange

Telephone: REctor 2-8600

Teletype:

Central Vermont

for Banks, Brokers

Common

Broadway, New York 5, N. Y.
Bell

Brokerage

Service

Company
Preferred

Reynolds & Co.

1899

CLEVELAND

STOCK EXCHANGE

TELETYPE: LA 6$

Dealers

*

♦Universal Winding Company

OTIS & CO.
(Incorporated)

CLAREMONT

WILLIAM ST., N.

Bond

Company

Conv. Preferred

♦Twin Coc ch

Distributors of Municipal
and

626

Security

Preferred

Solar Aircraft

WagettsellerSDurstJttc.

York

Acme Aluminum Alloys, Inc.

SINCE 1927

LOS

New
52

Chicago

CO.

Members

Syracuse

NY 1-635

Hardy & Co.
Members New
Members

New

York

Stock

York

Curb

30 Broad Si
Tel. DIgby 4-7800

Exchange
Exchange

New York 4

ira haupt&co.
Members

New York Stock Exchange
and other Principal Exchanges

111

Broadway, N. Y« I

REctor 2-3100

Tele. NY 1-733

of

enter¬

When England had 6,000,-

sal further into the

suggest the

of

the

England, the great

production

standard

lowed

Teletype NY 1-2708
Enterprise 1820

Boston Telephone:

,

Our

e.

the present most
powerful industrial country in the

21)

R. H. Johnson & Co.

Wright

wilderness

Aerovox Corp.

Havana Litho. Co.

The
States

;

settled by

progress

tive

economy

of

people
seekin g: freedom
and independ-

this., lie

ere

them

minds that

any, among
who were not per¬

activity
the issue is not between
began to decline appreciably some months
ago the word
private industry and their work¬
went around that the "recession"
or
ers but between trade unions
"depression"—there
rep¬
was some
disposition to argue about the term to be
resenting the crew of nationalized,
employed
state
—was

French public is doubly involved

Leland Electric

was near

own

in

production,
trade, and fi¬

few, if

that

you

amazing thing is that for

(Continued

in the

statistics
Egon KaSkeline

highlight of the present crisis in France

are

Maybe,

was

that it

own

cialist

is

fectly certain in their

going to The French railroads were taken
have al¬ over by the State in 1936 and the
ready seen it.
But what is sur¬ electricity and gas works, which
prising is that you will see it in also are partly halted by walk¬
very conservative newspapers.
outs, were nationalized in 1946.
It is, in fact, a very accurate ap¬ French workers, at this hour, are
using the supreme means of class
praisal of the Congress.
But the
see

gained
freedom

substantial "reces¬

Washington

na¬

One

is

standard, it did not pass the TaftEllender-Wagner housing bill, it
did

Six months
ago there were very, very
the swarms of economists in

ends.
Carlisle

that,

has
progress
followed
every -step

further

their

it

passed no so¬
cial legisla¬

We See It

Lessons of the Past Year

entire

economic

knows

the

para¬

tion's

nothing
bring

As

noth¬

of

and.

commerce,1

the

lyzing the

did

it

of

think

housing short¬
age,

industry,

EDITORIAL

railways,

did

nothing to

in

as

case

This

Congress

stake,

workers

only
that they want
higher wages,

and it passed
only an infin¬
itesimal
per-

centage

at

Copy

a

Free International Markets
Essential to Peace and

basis of interview with French Minister
of Economic
Affairs, predicts that current crises will not cause
France to abandon her
program of close state control.

of

session

Industry

Price 30 Cents

By EGON KASKELINE

BARGERON

•
_

York., N. Y., Thursday, July 31,1947

THE

2

(422)

Responsibilities for World Leadership
j

America's

5/61

Assoc. Electric Co.

Thursday, July 31, 1947

FINANCIAL CHRONICLE

COMMERCIAL &

IIARRY A.

By

Cities Service Co. 3/77

BULLIS

Alabama &

.

General Mills, Inc.-

President,

•

..

/

.

eight European countries, including Germany, urges our
whole-hearted support of Marshal! Plan on the ground of enlightened selfishness.
- . ,
The fundamental issue in Europe is^-How far should the power of the state go in

Industrial leader, just

Portland El. Pr. 6/50
BOUGHT—SOLD—QUOTED

returned from a tour of

Louisiana Securities
Bought—Sold—Quoted

Hanseatic

; New York

prise?4 It is a

Corporation
120 Broadway, New

Socialism

York 5

the

Teletype NY 1-583

BArclay 7-5660

on

help them.

system on the
other hand.

Savoy Plaza

tant

Savoy Plaza

do

—

Class "A"

Ry.

Piedmont & Nor.

h

s

a

drawn

Members New York

Telephone COrUandt
Bell System

5

7-4070

Pennsylvania Salt

up

A. Bullis

period long. We must
support the Marshall Plan; how¬
ever, we should be tough, and we
should
insist that > the
govern¬

Bought—Sold—Quoted

ments

Request

tell

us

Food

Both

goods

Needed

Europe

needs

our

NY 1-1557

HAnover 2-0700

Direct wires to

bearable—

more

branch offices

our

Int'l Educational Pub. Pfd.
Howe Scale Com. & Pfd.

of

Another

thing

that

we

do is to maintain a strong,

Henry Hudson Hotel Com.
Elk Horn Coal Com. & Pfd.

should
vigor¬

ous, functioning economy here at
home.
We should keep an even

the United

keel in

States so that

demonstrate

can

we

efficient

an

Members Baltimore

which

countries
Russia.

fearful

are

of

WOrtk

of

all

2-4230

of

practically

And

(

countries

the

European

those

Stock Exchange

Broadway, N. Y. 5

120

to

life

of

way

Teletype NY 1-1227

Bell

Europe do fear

Russia.
'

should also strengthen

We

and

constructive informa¬

Central States Elec. (Va.)

abroad.
The world
should be convinced that we have

United Traction of Pitts.

maintain

moral sup¬
requesting our assistance port just as much as it needs food
and
supplies.
If the people of
what they will do to put
~

Exchange

Stock

New York 4, N. Y.

New Orleans, La. - Birmingham, Ala.

life, especially food and
clothing.
Food and clothing are
the most important articles that
are
needed at present.

Moral Support

and

people

is, improve their living con¬
ditions and permit them to pur¬
chase at least some of the neces¬
sities

York

New

25 Broad St.,

to defeat Com¬
is to make the lot of the

common

any

Members

•

way

that

never

for

and

recovery

3i/2% Conv. Pfd.

on

Harry

1

,

1

•

recovery.

only

munism

will

Russian
they will have to . do for them¬
ideology and the free enterprise
ideology.
If Russia should con¬ selves,-but it is important that
;we give them assistance now.
trol Europe, we in America will
We have to realize that the re¬
have an armed camp controlled
covery of Europe will be a slow
by the state.
The risk
is so great that we process, but we should appreciate
that with our intelligent assist¬
must pay the price, even though
ance, Europe will recover.
' —
the price will be large and the

Teletype NY 1-1548

Prospectus

The

been a good
commodity. Our
alone will not
help bail these people out. What¬
ever
we
do for
them will be
small in comparison with what
have

credits

between the

the West '■*—

Curb Exchange

Street, New York

31 Nassau

speedy

productivity. Relief as
people,, and the

market

the
and

East

to; build

countries

own

poor

be¬

tween

Vanderhoef & Robinson

enough to help them
in time of need, they will go for¬
ward with greater confidence in
themselves and work harder for

to be strong

such does not lift

or

The

300 shares

'

•

their

hot?
line
is
r p
ly

nists

,

should help

we

those things that

on

the

assist

by

Commu¬

the

WANTED

BID

sistance

Europe

want

words,

.

_

continue

States- will

United

the

people of these nations who
will help themselves.
We should
also concentrate our economic as¬

we

controlled

commit¬
us that

.

.

In other

question

is

3/6s, 1956

assure

the

impor¬

The

strong

will

will help themselves if we

they

prise

have

which

ments

free

our

enter

own

should

we

hand

one

and

® their

and

munism

{

V

.

how far should it be left to. individual enter¬
the economic area—a struggle between Com¬ Steiner, Rouse & Co
house in order.
Also, Europe can have confidence that

life of the country and
struggle for political power in

planning the economic

*

tion

a

Common

Stock

service

(Continued on page 20)

1997

5s,

Reiter Foster Oil

ftfepONNELL & Co.
i

-

■

V

•

■Members

f •

York

New

York

New

Stock Exchange
Curb Exchange

By

•Tel.

REctor

Actual TiYafket 4 Qn
Co. WD

Wharton Iron & Steel
U. S. Finishing com. & pfd.
Electric Bd. & Share Stubs
New Eng. Electric System
Gen'l Aniline & Film "A"

Taylor
•

Guaranty
Northern New

You

Boston & Maine

Deal

R.R.
Eng.

r
Demo¬
adminis¬

Fabrics
Time, Inc.
Argo Oil

the

The record shows

1-1126 & 1127

Congress
than

any

Halleck

that the 80th

has accomplished more
previous Congress in

over

that

Broad¬

American

casting Network, July 28,

1947.

64

under our
is the

that

New

We Maintain Active

Cleveland Cliffs

Abitibi Pow. & Paper

New

Dealers

Commu¬

nistic fellow-travelers.

Many measures not yet enacted
are far advanced in the

into law

Securities

Constitution

the

the

.

MICHAEL HEANEY, Mgr.
KANE, Asst. Mgt%

WALTER

other

Joseph McManus & Co.

people as expressed in
Republican victory.

the

Chicago Stock Exchange

at

we

Teletype NY 1-1610

Universal Match
Ohio Match

Instead, Mr. Truman has made
tragic mistake of trying to
thwart the will of the people by

the

Net Markets

Public Service Company

Markets in U. S. FUNDS for

United Kingdom 4 %

Gold

Troster, Currie & Summers

Ont.

Paper

Securities

British

Securities

York Security Dealers Ass'n

Common

Goodbody & Co.

'

G.A.Saxton& Co.,Inc.
70 PINE

ST., N.

Y. 5

Teletype

NY

WHitehall 4-4970
1-609




II

Members
115

TV.

Principal Exchanges
NEW YORK 6, N. Y.

Y. Stock Exchange and Other

BROADWAY

Telephonp BArclay 7-01OO

Teletype NY 1 -672

Inc. Com. & "A"

Detroit Harvester Co.

Bond?, Stock

Com.

Emery Air Freight Corp.

^Georgia Hardwood Lumber

Co.

Common

and Rights

Raytheon Manufacturing Co.
Bought

—

Sold

—

Quoted

$2.40

Department

Department

',

Members
New

Common

Gaumont-British
Scophony, Ltd.

Cliffs Corporation
*

of Indiana

'90

Rhodesian Selection

Canadian

i.

-

shall push to

the

Co.

Minn. &

Common

r

New York 6

Digby 4-3122

process.

measures

York Curb Exchange

Members New

39 Broadway

landslide

These and abusing
the
Presidential veto
power.
He has used the veto
next session, power for purposes for which the
veto or no veto, and alien-minded
Founding Fathers never intended
forces to
the contrary notwith¬ it. He is
using it as a weapon of
standing.
• * ■ the minority to block the major¬
I remind you that a few days
ity.
'
"*
/;
after you elected your Republican
He used it to block, for the presCongress, President Truman is¬
(Continued on page 31)
sued a formal statement, declar-

legislative

Bulolo

Old & New Pfds.

HAnover 2-9470

Curb and Unlisted

that

tax-squandering

and their

Brown

Iron

Exchange

NEW YORK 5

*

1-1140

Air Products,

Buda, Common

1923

York Curb

WALL ST.

Teletype NY

Congress

body,

my

completion

*Radio address by Congressman

Trading Markets Fn

program

.

_

its

forward-looking program.

Dealers Assn.

Hanover 2-4850

St., N. Y. 5

Teletypes—NY

Charles A. Halleck

*
■
»
pledges. We have re¬
sponded to the will of the people.
We have demonstrated that ours
is a united party, with a sound,
can

a

program,

the debris left by

that
Republi¬
Party has

kept

fWenewiCompon^
Bell

record

shows

Lea

the

the result of any fair election."
friends, said was right
when you repudiated the Truman
;
y President's Opposition
; ;
Administration last November.
It is well to < remember, that
During the first session of the statement in the light of subse¬
80th Congress, we began putting
quent events. The New Dealers,
that program into effect. We still
from
President
Truman
down,
have much to do in clearing away
never have bowed to the will of

peace
national

The

our

you,

prosperity.

.

Albert Pick

37 Wall

of

production,,
jobs,

Established
Members

.

maximum

and

Y. Security

#2111

healthy
climate for

Hood Chemical

Members N.

f

a

Foundation Co.

ing

Units

Frank C. Masterson & Co.

last November for the pur-

lawmaking
people entrusted
the
controlling
voice
of
this
dominated
by
its ' quarrelsome
branch of our government to the
radical masters.
'
' • Republican Party, and that he
May I emphasizelhis point: We
-accepted this verdict in the spirit
Republicans are united in support in which all good citizens-accept

m

f;,'

despite balk¬

ing at every step of the way by
the hodgepodge Democrat Party

and
providing

of

Swasey

Haytian Corp.
Int'l Detrola

2* ,v::

\
the Congress you elected

many years,

many,

-

trations,

Moxie Common

»

re¬

t he
New

the

crat

appraise the work of

trend

ruinous

Punta Alegre Sugar
Warner &

of

pose

of

can now

<$>-

versing •

England
United Piece Dye Wks.
United Artists Theatre
Dumont Laboratories
Aetna Standard

H

U. S.

long years.

Trust

&

Title

•

,

2-7815

Virginia Electric Power

HON.) CHARLES A.

(fongyessm^n from Indiana
Asserting 80th Congress has accomplished more than any previous Congress in many ye&s,.Republican
House Leader scores President for veto of tax and labor laws and contends reduction in Presidential
budget is biggest Congress ever made. Lauds many army unification and veteran legislation and says
"party will continue the job so well advanced."
.
As Republican leader of the House of Representatives, I am happy to report on what
we have done in the first session of the 80th Congress—the first Republican Congress in 16

BROADWAY, NEW YORK 5

120

Tudor City

Pledges

Republican Congress Kept
HALLECK*

Conv. Preferred

*Prospectus

J*G-White 6 Company
INCORPORATED
37 WALL

STREET

NEW YORK 5

ESTABLISHED 1890
Tel. HAnover

2-9300

Tele. NY 1-1815

on

'

request

Reynolds & Co.
Members New
120

York Stock Exchange

Broadway, New

York 5, N. Y.

Telephone: REctor 2-8660
Bell Teletype: NY 1-635

Volume

Number 4616

166

TIIE COMMERCIAL & FINANCIAL
CHRONICLE

(423)

INDEX
Articles

and

News

World Bank Securities
And SEC Regulation

Page

Free International Markets Essential to Peace and
Prosperity

—Ivan Wright

__Cover

Rapid Nationalization of French Industry
•—Egon Kaskeline
No!

This Was Not

—Carlisle

'World Bank debentures declared
exempt securities by SEC.
rules give these securities favored
position. These

_Cover

"Do Nothing" Congress

a

Bargeron

.

_Cover

_____

America's Responsibilities for World

proved
and

—Harry A. Bullis

2

4

Answer to Municipal Ills
Thirkield

B.

watched
9

_

We Are Seeking Peace With Justice—Sen. Brien McMahon__

15

*

,

World

*

Securities and

Bank

1

*

SEC

_________

Depression Not Inevitable, Says Gale F. Johnston___________

6

Wiesenberger to Survey European Financial Centers—

t

Col. Pope Urges Study of Taft-Hartley Act

the World Bank Securities

Securities and

8

_

The

Smethurst Foresees Litigation Arising Out of
New Labor Law

Truman Reports on 1947 Economic Adjustments

12

Gordon Jones Says SEC Handicaps New Mines Financing—

14

Snyder Announces Relaxation of Treasury Controls
Security Imports

17

——

on

—

Federal Reserve Board Analyzes Debt Retirement Program-

18

Netherlands Expected to Get World Bank Loan-

19

Bank of Nova Scotia Holds Canada Benefits-from

Sterling Convertibility

'-•» -S"

Stassen Sees Competition of Ideologies—

19

——

—

20

______

announced

the

first

exempt
of the

from certain
provisions

WHitehall 4-6551

Haile Mines
U. S.

Finishing Com. & Pfd.

J.K.Rice,Jr.&Co,
Established

Member*

believe;

regulatory

power exercised

by the SEC ih the securities field.

20

—

that

to-day.

Hoving Corp.

such

of the Commission aire
worthy of
close examination in their relation to
the general

20

_____

Britain to Revise Foreign Securities Control——.

list

Jack & Heintz

Exchange Act of 1934,
interpretation under the

an

however, that the actions

Prize Winners in Wiesenberger Economic "Forecasting"
Contest
;L_

oi

some

a

Aeronca Aircraft Com. & Pfd.

the

Exchange Act of 1934.
of

for
us

WALL STREET, NEW YORK

Telephone:

Securities

With all that the Securities &
Exchange Commission has
done to grant preferred treatment to
the securities of the
World Bank, we haven't the
slightest quarrel;* We

19

________________

Irving Olds Explains Steel Price Increase___I_

99

SEC

loney Act), the section pursuant to which the National As¬
sociation of Securites Det£:rs,
Inc., is registered with the
Commission, as a "national securities association."
The third
exemption in effect relieves World Bank
securities from the "when-issued"
trading provisions of the
Securities and Exchange Act of 1934.
1
-vi

13

_______

Send

N.

REctor
v

Y.

1908

Security Dealer* Attn.

2-4500—120

Bell System

Broadway

Teletype N. Y. 1-714

mission of over-the-counter brokers
and dealers who trade
in
non-exempted securities; and (b), from Section 15A (Ma¬

9

Dominican Republic Calls Dollar Bonds for Redemption

of

exemptions is from Section 15 (a):
The section which
requires the registration with the Com¬

9

___________

treat¬

securities of the World Bank,
Some of the effects of these rules
were (a) to

4

—

moolah

industry

outcome

such

rendering of

3

Eric Johnston Upholds Marshall Plan

securities

particular interest for the

Trust Indenture Act of 1939.
All these dealt with the

•

Regulation

real

junk.

(International Bank for Recon¬

Act of 1933 and the Securities
and
as
well as the

16

——_—

pay

old

application, the Commission
promulgation of a number of rules under

Employer Policy in Prosecuting Unions for Unfair Labor
Practices—Carroll E. French—

policy and

Development) requested certain favored

with

On

14

Free Speech in Union-Management Relations—Hiram S. Hall

—when you know that we'll
actually

reaction.

10

The Outlook for Railway Earning Power—Vincent C. Smith_

BEAUTIFUL,

admission of over-regulation.
Foreign securities
be similarly handled. Liberal

Monetary and Financial Problems, the

Equitable Office Building Reorganization Sets New Pattern
Morse

LIFE CAN BE SO

Securities Acts, and that
request was sup¬
ported by the National Advisory Council on International

8

—Alexander B.

AND COMPANY

New

ment under the

7

Depreciated Dollar Should Mean Higher Stock Prices
—G. Y. Billard

an

should

llCHIEIMIIl

-

preferences apliquid market. Need for excep¬

more

When the World Bank
struction and

Consolidation—One
—Eden

domestics

freer and

a

repeal of the Maloney Act recommended.

2

Trading in Today's Market—Col. Herbert G. King

making

tional treatment

Leadership

Republican Congress Kept Pledges—Rep. Charles A. Halleck

as

3

Haytian Corporation
Punta Alegre

Sugar

Lea Fabrics
U. S.

Sugar

Susquehanna Mills

DUNNE & CO.
Members Ntw York Security Dealer* Ass*.

25 Broad St., New York
4, N. Y.
WHitehall 3-0272—Teletype NY l-SSO

<■

'

No Peace Without Freedom of Press, McNeil Warns—

Chemical Bank Announces

Changes in Officers.

Illinois Dealers Hold Meeting and Outing

Enemy Nations

______________

•

_

'

.

Berkeley Williams Issues Correction-

customary commission
brokers

38

—

It

See

Bank and

Events

Field

Our Reporter on

Governments—-.
Our Reporter's Report—.

Insurance Stocks.

Canadian Securities—

Coming

Page

(Editorial)——-Cover

Public

Investment
—*_—

Recommendations
Fears
From

—I——

Plan

Now

Washington

News—Carlisle

Ahead

of

The

the

Funds

News About

NSTA

in

(Walter

By

Corner

30'

-

Registration—

State of Trade

Tomorrow's

Bargeron

Indications of Business ActivityMutual

8
14

_

Securities—_______

Salesman's

Securities

—

_

36

_

;

Securities

and

Hopes

36

-

Securities

Real Estate

22

-

Utility Securities

Railroad

Dealer-Broker Investment

Einzig—Marshall

-

Prospective Security Offerings—.

—_

the

.in

_—

and

33

Industry.

fr'See article

Observations—A.

Wilfred

May

on

cover

■^'See article

-—

a

on

page

of

40

The

Twice

Dominion

Weekly

COMMERCIAL

of
Canada,
Countries, $42.00

Other

and

Other

i

FINANCIAL
Reg.
WILLIAM
25

U.

B.

S.

DANA

Park

CHRONICLE
Patent

Office

COMPANY,

$25.00

Publishers

to

and
per

be true

same

domestic

securities?

If methods of

;

compliance by the SEC with the request of the
concerning its securities, and the support of the
National
Advisory Council on International Monetary and
Financial Problems, we see a tacit admission
by the Com¬

per

year.

per

year.

<

.

,»

postage

Record

extra;)

Monthly,
(Foreign postage extra.)
—

Note—On account of the fluctuations in
rate of exchange, remittances for for¬

9576

mission

Record—Monthly,

(Foreign

Earnings

that

in

the

thereunder there

Securities Acts and the

are

keting of securities which
interest.

burdens

onerous

were

best removed in the

'
.

WILLIAM

WILLIAM

DANA

D.

SEIBERT,

RIGGS,

Thursday, July 31,

statistical

records,
^

issue

corporation

state and city

news,

—

market

news,

etc.).

quotation

bank clearings,

1947

Reentered

as

25, 1942,
York,
N.
Y.,

3,

York

won't do

to

funds.

mar¬

public

CERTIFICATES
Bond & Mtge. Guar. Co.

We

on

1879.

Subscription Rates

Stock

York

Curb

New

York

Exchange

Cotton

Commodity
Chicago

Exchange

Exchange

Exchange,

Board

of

New Orleans Cotton
And other

Inc.
Trade

Exchange'

Exchange*

N. Y. Cotton

Exchange Bldg.

NEW YORK 4,
DETROIT

N. Y.
PITTSBURGH

GENEVA, SWITZERLAND

S.
of

in

interested in offerings of

"

r

Stern & Stern

,

Textile, Inc.

Public National Bank
& Trust Co.

Rome Cable

Corp.

4% Conv. Preferred

hor
Members

15 Broad

New

York

St., N.Y. 5

Bell

Stock

Teletype NY

25

o

A7/>tn

New

1-2033

VnTO^aaI*

York

Stock

FitnTi/ftl/td

Exchange

Broad Street, New York 4
*

Tel.:

Exchange

WHitehall 4-63^0

Analyses on request

Spencer Trask & Co.

w

Members

•

are

Lawyers Title & Guar. Co.

Newburger, Loeb & Co.

"




Member*
York

37)

PREFERRED STOCKS

Prudence Co.

year;

"

.

H. Hentz & Co.

Lawyers Mortgage Co.

second-class matter Febru¬
at the post office at New
under
the
Act
of
March

per

page

High Grade Public Utility and Industrial

N. Y. Title & Mtge. Co.

Subscriptions in United States, U.
Possessions. Territories and Members
Pan-American Union, $35.00

..

,

that the instant relaxations of the

say

(Continued

by William B. Dana
Company

*

ary

New

,

Offices:
135
S.
La
Salle
St.,
Chicago 3, 111.
(Telephone: State 0613);
1 Drapers'
Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.

Coypright

in

1850

'

TITLE COMPANY

1947

Other

.

made

Established

CHICAGO

Business Manager

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete

eign subscriptions and advertisements must
be

President

It

N.Y

Tele. NY 1-242

interpretation

concerning the

the

HERBERT D. SEIBERT, Editor & Publisher

New York 5,

Tel. HA 2-8080

New

year.

QUOTED

CORPORATION
52 Wall St.

New

In the

$38.00

—

FIRST COLONY

we are impelled to ask why
of-foreign securities in general

page.

Publications

Quotation

year.

Monthly
$25.00

Place, New York 8, N. Y.

REctor 2-9570

V

Bank

SOLD

parity of reasoning,

be extended?

9.

per

—

in

World Bank

Published

BOUGHT

large number of

marketing and
marketing conditions are benefited by these exemptions
granted to the World Bank, why shouldn't the same benefits

32

_

Washington and You——_.

—

and

5

Markets

Whyte Says)—

a

shouldn't the

Bank and Trust Cos.—

Notes

to

Corrugating Co.

were

Page
We

or, concession

dealers

Clearly, it was felt that- if these -particular
securities
to be given the broadest
possible market, one that
was
liquid and unrestricted, one that would result in a
successful disposition at the best
possible price of the offer¬
ing, certain provisions of the Securities Act would have to
be waived, and, in fact, these were waived.

Regular Features
As

or

throughout the country who will be
privity of contract with the Bank.

direct

40

—

but merely to allow the

sense,:

Viewed by

Board—

York

■

30

37
as

V

'

V:

■

Survey by Bankers Trust Co—
Business Prospects for Last Half of 1947

^

Bank in the belief that such
treatment would be the most
effective for
disposing of its securities to the public.
The Commission was informed that
the Bank did not
propose to effect the distribution of its securities
through
underwriters in the usual

27-

.___

Record Growth in Banks' Pension Plans Reported in

National Industrial Conference

^

25

—

______________

Final Date Set for Filing Claims by Bondholders of

It is apparent that the application for the
particular
treatment accorded to it
by the SEC was made by the World

23

If/iinhns**

Members

ATa.n

New

TT_"L.

York

135 S. La Salle

HAnover 2-4300

Curb

_

Exchange

St., Chicago 3

Tel.: Andover 4690

'»

Teletype—NY 1-5

Albany

«

Boston

-

Glens Falls

-

Schenectady

C. E.

Unterberg & Co*

Members N. Y. Security Dealers Astfn

61 Broadway, New York 6, N. Y.
Telephone BOwiing Green 9^3565

Worcester

*

Teletype NY

1-1(166

Thursday, July 31, 1947

CHRONICLE

THE COMMERCIAL. 4 FINANCIAL

(424)

4

BUSINESS BUZZ

Trading in Today's Market
By

COL. HERBERT G. KING

Exchange

Member, New York Stock

£57, 19?. h

charts and past performances as
and says psychology of the aver¬
age trader is now changed and smart trader tries to adjust himself«
to prevailing conditions.
" •

Col.

King decries reliance

on

•basis for stock market judgment

*

long been' my observationhow to get rich auickly,

has

It

little

Abitibi Power
American Hardware

Brockway Motors

he

inform¬

is

t h

ed

a

t

•

a

knowledge

Cinecolor

of

and

of

values

Chicago R. I. & Pac.
Diebold *

market condir

backed
patience,
courage, intel¬
ligence -and
ample capital
tions,

Elk Horn Coal

Fairbanks Co.*

necessary

are

General Machinery

that

and
Col. Herbert G. King

Gt. Amer. Industries

Lanova*
Lawrence Port. Cement*

far

so

substU

no

tute has been
found for judgment, knowledge,
and up-to-date information,
ac¬
companied by a definite method
,,

.

that what the public wants

without any risk, on very
capital.~—• .... —r——[
at that point that the stubborn-)The
average
customer
is ness of stock prices against bear¬
ish influences should have indi-r
not
very
cated to traders that a good sized
pleased; when

is

know

to

,

of trading.

Liberty Aircraft Prod.
Majestic Radio & Tel.
Michigan Chemical
Minn. & Ontario Paper

Of

I

late

have noticed

an

in¬

charts and the
averages as a basis for stock mar¬
ket
judgment.
However, many
traders have recently found out
creased reliance on

that

Moxie

expecting stocks to

act ac¬

cording to pattern can be a very

costly theory. Their charts showed
so
conclusively that the market

Nu-Enamel

Philip Carey

much further,
that they forgot just what causes
price changes. The financial and

should

Polaroid

go

down

industrial conditions of

Purolator Prod.*

try,

Rockwell Mfg.

|

foreign

and

Sterling Motors*
J. P. Stevens

conditions, and indi¬
business prospects of
a

well as the technical
position of a stock all combined,
make up the price of the stock,
and charts only show what has
happened in the past and not what
will happen in the future.
The
a

persistent decline of over

year

had encouraged an amateur
brought in suf¬

short interest and
ficient

Taylor-Wharton*

it

Textron-Pfd. & Wts.
Time Inc.

liquidation that had made

possible

for

whenever they
success

Tokheim Oil Tank

many traders were basing thei^
operations on graphs and disre4
garding conditions.
J;
,;;; , j
"

become

shorts

to

cover

desired, until their

had caused the

market ,to

It was

oversold.

general, there are two main
for changes in the selling

In

causes

of

price

First, changes

stock.

a

value of a stock,

in the investment

in the com¬
itself, or of conditions af-j
fecting certain classes of stocks,
or others affecting all stocks
to¬
caused

changes

by

pany

Second, changes in purely
conditions, having

gether.

market

stock

investment

with

do

nothing

to

values.

Shrewed

investors

saw

showing
their
greatest earnings, paying
their largest dividends and that
the political, labor, and foreign
companies

that

were

Their

improved.

had

situations

buying gave the market a
firm base and once the rise got.
astute

there was no stopping

under way

it until it had run

its

course.

There is no doubt that the psy¬

chology of the average trader has
changed. There will be re¬
actions of course, but the bear
market is now over for sometime
now

and

reactions

garded

will tend to prevent very

severe

declines.

»<

The smart trader always

tries 'to

Depression Not Inevitable, Says

adjust himself to conditions since
cannot
adjust conditions to

Gale F. Johnston

he

conditions

and

himself

definitely

on

the

past

themselves

who

of

causes

exactly1 in

on

the

the

If

not,have

of
price, adjustments,

Mr.

Gale F. John-

prices and business. The $200 bil¬
lion in savings equals to total in->
come of all Americans during al¬

Corporation

Central National

ESTABLISHED 1927

Street, New

Teletype: NY 1-2948

Telephone: LExington 2-7300

upon

request

Ward & Co.
1926

'"ii

i

t

Graham-Paige Motors
4%

Buff. 6024

Tennessee Products &

I




ten

Gale F. Johnston

Bank

Reserve

conference

and

to

at

a

with

economy

1929

the

defrost

Johnston

Mr.
no

"our

after

years
war

that

it

plant and productive capacity
it

Chemical
,

that

producing new wealth in peace¬
Billions

time.
and

spent

on

research

development of new processes

and improved techniques and in
creating substitutes, synthetics and

heat of

entirely new and useful substances
by rearranging the molecules of
matter, were not really spent but

com¬

declared:

law, divine or eco¬

invested, he declared.

Our gains

wealth,
depression,
offse.t the war

from these new sources of

not

if

in

can

nullified
a

by

few years

a

productive
capacity is much
greater than it ever was before
and we have 60 million people

Co.

be cred¬

it

nomic, that says we must have a
depression after even a $350 bil¬
lion war. The nation's peacetime

Argo Oil Corporation

can

against the national debt, for
represents money saved out of
our
war
spending, he said. Bil¬
lions more went into expanding
it

hard

so

1940

dividuals since

that

Recalling

today.

ited

savings

payroll

"There is

debt.,

gainfully employed. If we act in
time, and by 'we' I mean manage¬
ment and labor, farmer, producer,

atomic project not only
the bombs that stopped

Mr.

.:

..

Johnston

added

two billion dollars

anese

war,

.

;.

•

that

gambled

on

the

the

produced
the Jap¬

saving uncounted bil¬

middleman and con¬ lions of dollars and thousands of
stop these depres¬ lives, but for only one-sixth of
Not to do 1% of our $350 billion war bill
everything you can toward that we created a new source of power
end is nothing short of high trea¬ for peacetime and power to en¬
son to your country and the hu¬
force
peace
whose value may
man
race, and sabotage of your transcend the whole cost of the
own future
and your children's." war in money. "Already a bigger
processor,
sumer,

we can

sions that breed wars.

Lufcetkin

&)

Co.

INCORPORATED

Bos.2100

Federal

pletely,"

Osgood Company "B"

REctor 2-8700

ENTERPRISE PHONES

the

another

Consolidated Dearborn Co.

120 BROADWAY, N. 1.5

Direct Wires To

July

on

in

Trebling of liquid assets of in¬

by the Rotary
Club
of
St.

took

Corporation

Convertible Debentures due 1956

Analyses on request

Phlla., Chicago & Los Angeles

lunch¬

sponsored

froze

AUmbers N.Y. Security Dealers Assn.

N. Y. 1-1286-1287-1288

22,

a

the U. S. Savings Bonds Division.

Wellman Engineering

Bartf'd 6111

indebtedness

at

Paul, the Min¬
nesota Employers' Association and

York 16, N. Y.

Elec. System
Puget S'nd P. & L. Com.

EST

checking accounts and $6 billion
in savings bonds, and either of
these sums exceeds the total farm

St.

Louis, told 250

New Eng.

Circular

out.

pointed

he

business lead¬

22 East 40th

Tide Water Pwr. Com.

of the depression

years

1930's,

industrial and

EASTERN CORPORATION

Cent. States Elec. Com.

Standard Gas Elec.

the

Farmers have nearly $7 billion

eon

Southwest Natural Gas

most five

antile

of

ers

Federal Water & Gas

the

of

Co,; of

Wurlitzer

Cumberland Gas

Presi¬

n,

e he

powerful

a

downhill plunge of

Bank & Trust

Warner & Swasey

or

o

Johnston' sees

brake for any

Commerce

United Drill & Tool "B"

*Bulletin

t

dent
M

Amer. Gas & Power

major depression and we can mitigate any recession dur-

be

s

Vacuum Concrete*

a

minds to work together to prevent it, we need

ing the period

for some happy times to come.

Bought—Sold—Quoted at Net Prices

make up our

we

real

should

fluctuations

provision for social security.

government bondholdings and more

their

and

acumen

remember

nation's productive capacity is much greater
war time accumulation of liquid assets
national debt.; Calls for wider distribution of

and $200 billion

offsets increase in

will soon be con¬

financial

sound

than prewar

nursing their losses for

year

gratulating

traders

Prominent banker says

investors who

Many involuntary
have been

now

are

the optimistic side.

U. S. Air Conditioning

United Artists*

Miss Carter, you'd stop referring to my agents as
pin-heads!"

"1 wish,

re¬

opportunities,

buying

as

be

will

now

which

company as

Stromberg Carlson
TdCcl

banking

influences,

credit

vidual

Sorg Paper
Stand. Fruit & Steamship

the coun¬

imminent. But too

bull swing was

Members New York Security

41 Broad Street

Dealers Association

New York 4, N. Y.

In the $200

sets

of

billion

billion of liquid as¬

and better

cyclotron in California

individuals, including $45 has made previous atom splitters
in

U.

S.

Savings Bonds»

;

-

•

■

(Continued on page 32) •;

Volume 166

Number 4616

THE COMMERCIAL &
FINANCIAL CHRONICLE

(425)

r
Steel

The

Clyde Eastus

Production

Electric Output

•

Observations

Carloadings

State of Trade

Retail Trade

Commodity
Food

and

Business

last

northern

year,

in this

area

Corporation.

Analysis indicates that 32,023
dwelling units were called for
in residential contracts
signed in the first half of this
year, with
20,641 of these units to be contained in
apartment houses and
the bulk of the remainder to be
in single
family dwellings, 8,352
of which are being offered by
operative builders for sale
or rent.
Residential volume totaled

-

-

mitting this mid-year treatise when the

Over-all

TREND

materials and skilled
29% over the previous

building construction increased

week.

This

level and

week's

private construction increased
47% over last
that of the
corresponding week of 1946
Cumulative private construction in
1947 falls 10% below

by 13%.

exceeded

that for 1946.

Lumber production for the week ended
July 12 totaled 135,549,000 board
feet, an increase of 56% over the
previous week. New
orders for
lumber, continuing well in excess of
production, rose 38%;
lumber shipments increased
13% to 118,870,000 board feet.
Unfilled orders for paperboard
duction in the week ended

<

July

were

more

than double pro-

19.

Paperboard production
amounted to 173,699 net
tons, an increase of 30% over the
pre¬
vious week and about
10% over the corresponding period of
1946. New orders for
paperboard increased about
5%.
A continued small seasonal
decline was evident in butter and
cheese production.
Meat production in the week
ended July
19
increased about 3% to
302,900,000 pounds. Flour

11%

in

the

STEEL

week

production increased

ended

July 12.

PRICE

INCREASES SEEN
EARNINGS VERY HIGH

,

THIRD

QUARTER

an annual basis
steel consumers will
pay an additional $350
to $370 million because
of the steel
price increases put into effect
last week and this
week, according to "The Iron Age,"
national metalworking weekly. "The Iron Age" weighted
finished steel
composite
price this week is up $5.90 a ton. A
straight average of the increases
would be higher than
this, but "The Iron Age"
figure gives weight
to the actual
shipments of the various products involved
in the series.
The stiff advances made in
all major products
which ran from
$5 to $10 a ton will without doubt
substantially cover increased cost
brought about by the steel labor
contract, the coal wage agreement
and part of the
higher scrap costs. On a
percentage basis the average
steel boost takes the steel
price level to 37% above the
average
prevailing in 1939. During that year steel
prices had been driven to
rock bottom because of a
rugged price war among steel
firms.
The
actual increase in
prices since prewar days appears to be
somewhat
less than the
higher levels reached on many other
commodities.
Steel wages in 1939
averaged 84.2^ an hour and the
current
labor rate is estimated at
around 1.561 an
hour, an increase of
85% over the 1939 level. Scrap prices
today average $40.83 a
gross ton compared with
$16.39 for the year 1939, or an
increase
of 149%. It is
expected, however, that the current
high level of
scrap prices will not be maintained
throughout the
*

.

•

year.

With the current steel
price advances effective

(Continued

on

tion

26)

page

immediately
-1
:

on

■!

V

able

to

keep

1

hand that it would

on

Municipal Finance

.

*

■

...

Constructive Service

I

■

•

As Consultants

structive

in

t.

'

Municipal Finance

units.

This

service

we

of

existing

debt

relations.

SECURITIES.

We

WE
are

DO

render

States and

includes

NOT

con¬

other

the

on

be

disastrous

Mexican Light & Power 5s & 6s

Steep Rock Iron Mines
5i/2«, 1957

other

are

not

other

to

HART SMITH & GO.

sections
of the document Mr. Truman seems
to circulate a
pro-labor lawyer's
brief in stating that "wage increases are
still needed to attain work¬
able relations in the wage and
salary structure." And, of course, he
chose to overlook the effect of the
$6 billion
recent 15-cent hourly increase.
His commentary
on the recent
wage rises in the coal
industry can be called nothing
but masterful rationalization, as follows:
"The earnings of the coal
miners under the new contract must be
judged in the light of the
character of their work and the labor

needs

of the
industry [?].
There has been exaggeration
[!] of the size of this adjustment com¬
pared with the adjustments
previously made in many other indus¬
tries. Every effort should be made
to absorb the cost
increases in
the
coal mining industry
and the industries

indirectly

affected,
through increased productivity and through reduction in
profit mar¬
gins." In other words, here the
danger from boosted wages sup¬
sacrifice

that

Bell

New York

5

HAnover 2-0980

Teletype NY

1-395

Montreal

Toronto

inflationary impact

resulting from the

is

52 WILLIAM ST., N. Y.

the

mine

and

owner

the

steel

his

producer

will

profit to rescue both the worker
and., the consumer.
this is hedged, elsewhere in
the report by the
pronounce¬
ment that "it should be
recognized that some wage increases will
require price increases." Mr. Truman
cajoles labor most unrealistically—supposing that it or any other group will act from national
rather than from
self-interest—idealistically to forego wage increases
for sustained
employment arising from stable prices.
or

STERLING BALANCES

Arabian, Ethiopian, Iranian,
Liberian, Siamese
BOUGHT
with approval

Markets

AND

SOLD

of local controls.

quoted

for

hind

any

foreign exchange, free

or

of

blocked.

not

even

For

I

F. BLEIBTREU &

CO., Inc.

79 Wall St., New York
5, N. Y

Telephone HAnover
Cables:

Solofret,

2-8681-2

New

York

ACTIVE MARKETS!

Agin' It?

With

similar contradictions the Report both
supports and pil¬
lories private enterprise and the
free market. Various
gestures

made in deference to the

responsible

was

Di-NocCo.

discarding

of government restraints after
World War One when

ket"

are

enterpreneur, but then much also is made
alleged to have resulted from the

of the disastrous effects

for

skyrocketing prices

collapse.

and

"the free
the

r

Soya Corp.

mar¬

subsequent

Virginia Dare Stores

\
The President's Report seems to
be at a total loss to
account:
for past forecasting errors, and whether it
should currently come out
with definite prophecies.
For example, he says: "Month
by month
there has been talk of recession

[surely by

month

government

economists]

by month recession has failed to materialize."
We had
that the lag of wage-rises behind
rising prices, combined

told

the supposed

;
been

the

President's

"double-talk"

just

strongly

as

permeates his observations of our
current position. First he describes
the best of all worlds wherein
"Americans today live in a richer
and more productive
economy, and are enjoying its benefits more
equitably, than ever before in peacetime
history ... in the midst
of unprecedented
prosperity." But he also finds that large export
are

creating

a

strain

the

economy; and manages to
consumers' real
income, over

on,

and

worry

Report).

temporary
the

stimulant

downward

are

never

simple"

very

:

-

trend
over

credit to consumers'

consumer

able income.

"Our economic problems

a

over

incipient unemployment, and

(page

8

siegel & co.

with

dissipation of the consumer's
savings, would cause an
unbridgeable "gap" between buying power and
production. Yet it
has happened that labor
difficulties have since been
peacefully set¬
tled, and consumers have been spending even
more, both absolutely
and in proportion to their
savings. Likewise have the earlier inven¬
tory and construction bugaboos been
dissipated by the actual course
of ensuing events.

39

Broadway, N. Y. 6

LAMBORN & CO.,Inc.
99

WALL

SUGAR

of

dispos¬

STREET

NEW YORK 5, N. Y.

to,
the

DIgby 4-2370

Teletype NY 1-1942

Raw—Ref ined—Liquid

Exports—Imports—Futures

of the
DIgby

.

new

4-2727

financing,
planning

and financial

BUY

danger, but that

hand deflation is the
threat; that wages
with
inflated
prices,
but
on
the

declining ratio of outstanding
a

great

experienced

structures,

financing of self-liquidating projects,

public

cial

on

'

<

development of plans for

reorganization
the

"V

Municipalities

planning^ service for Cities;

governmental

assistance

»

to

the

expand the consumers' buying
through a reduction in their taxes. Obeisance is made to
point¬
ing out the danger of a wage-price spiral, yet in several
other

posedly

Company 5s, 1959

Internat'l Hydro-EIec.
6s, 1944

power

surpluses

A

is

up

Unfortunately,

Consultants

policies), ahd political coloration.

The foremost manifestation of this
melange
of
inconsistency is the treatment of inflation and
deflation. The Report seems to
tell us that infla¬

A. Wilfred May

But

MAKING

On

•

3V2S, 1976

Straddling the Inflation-Deflation See-Saw

*

output during the week ended
on July
23
moderately above that of the preceding week.
Continued short¬
materials, component parts, and skilled
labor hampered production in some lines. In
spite of increased cur¬
rent shipments, order
backlogs remained very large.
Employment
continued at peak levels.
/ :
1
Despite continued shortages of building

OR

Pennsylvania Salt Mfg. Co.
„■

3

•

l/z%

•

SELL

pleased to cooperate with finan¬

Preferred
"When

%

&

specialists in

Rights

Domestic, Canadian and
Philippine Mining Issues

Issued"

United Artists Theatre Circuit

institutions and investment houses.

Bulolo Gold

v~

Dredging, Ltd. V

*
.

•

Kerr

Common

Addison

Big Wedge Mines

Bought—Sold—Quoted

Wainwright, Ramsey & Lancaster
70 Pine Street

New York 5, N. Y.

Telephone WHitehall 4-3540




4

Province of Alberta

Brown
UPWARD

the

(about

wage

industrial

week's

of

All Internal Issues

inconsistencies, hedges,
contradictions, criticisms and pious hopes,
ideological
argument,
rationalizations

ages of certain types of raw

new

district

direct

This year's residential
contracts
dwelling units against 234,315 in

CONTINUES

was

for
Texas.

Dominion of Canada

re¬

a report from him
only once a year.
For the typical result of
this herculean expert
effort is an 80-page document
replete with charts
and tables and overlaid
with scientific
trappings;
but filled with recurrent

rose

labor,

law

quires

,

the corresponding period of last
year.
OUTPUT

Eastus

attorney

,

$1,468,902,000 against $1,633,473,000

INDUSTRIAL

Mr.

S.

The basic lesson to be drawn
from the Midyear
Economic Report
of the President is not
so much that it falls
into error and inconsis¬
tency, nor that it is short of
"answers"; but rather that economics
is not a science, that
forecasting is futile, and that government
plan¬
ning is to be avoided. The fault
actually lies
not with the Administration's
2,192 economists
who directly or
indirectly concocted the 30,000
word product, but with
the President for sub¬

in the first six months of last
year.
called for the building of

187,019

U.

MID-YEAR DOUBLE-TALK

the first six
and the highest dollar total for the
first half
since 1930, it was
reported this week by
Graham Ford, District Manager of F. W.
Dodge
of

year

TEX.—Clyde "0.

Street.

formerly

Failures

Contracts awarded for construction in
metropolitan New York
Jersey in the first half of this year totaled
$434,301,000, a gain of 2% over the volume reported for
of any

Seventh

By A. WILFRED MAY

and northern New

months

in Ft. Worth

WORTH,

Eastus is engaging in securities
business from offices at 212 West

Price Index

Price Index

Auto Production

Industry

FT.

5

Far East Oil

FREDERIC H. HATCH & CO., INC.
Established
MEMBERS
63 Wall

N.

Y.

SECURITY

Street, New York 5, N. Y.

1888

DEALERS

maher & co.
62 William St., New
York, N. Y.
Tel.

ASSOCIATION
Bell

Teletype NY 1-897

WHitehall 4-2422

Branch
113 Hudson

Office

St., Jersey City, N. J.

J. Barth & Co.

Harry Bruce Joins
J. Earle May & Co.

Los

ALTO, CALIF.—Harry

PALO
Bruce

has

Co., 157 Uni¬

with J. Earle May &

In the past Mr.

versity Avenue.
Bruce

with

was

Mitchum, Tully
& Co.

Co. and BIyth

&

associated

become

and

was

officer of Heller, Bruce &

an

Angeles Branch

LOS

address, industrialist reports on recent European visit, and scores Russia's refusal to cooperLays down four conditions for success of Marshall Plan, viz: (1) European nations must first

CALIF. —J.

ANGELES,

Barth & Co., members
and

York

of the New

Francisco

San

Exchange, have opened
in

office

Los

Stock

Angeles under the

co-management of Walter E. Law¬
rence

and John Meyer.

allayed; and (4) there must be

freer interchange of goods and services.

high government officials on
the

between

the'

the

Milling & Elevator Co.

Colorado
Bayway

Terminal

Emerson

Eastern

Corporation

Southern Production Co.
Memos

County

Lumber

Members
Los

York

New

Baltimore

&

Stock

Exchanges and other leading exchanges
S.

6

CALVERT
Bell

New

York

ST., BALTIMORE

Teletype BA

2

and

Los Angeles

New York

Hagerstown, Md.
Y. Telephone—-WHitehall 3-7253

Pittsburgh, Pa.
N.

Private Wire System between

393

Telephone REctor 2-3327

Philadelphia, New York and Los Angeles

last few weeks

other

fuelless

by
Russia's
boycott of the

rope,

but

Johnston

American Box Board

Botany Mills

did

Pittsburgh Rys. Co.

Preferred

Prior
I

Traded in Round Lots

H. M.

Byllesby & Company

PHILADELPHIA OFFICE

Waller J. Connolly & Co., Inc.
f

PH 73

RIttenhouse 6-3717

24 Federal Street, Boston 10
Tel. Hubbard 3790

Teletype

^ *

Tele. BS 128

VA.

RICHMOND,

DES MOINES
Dealers in

WHEELOCK & CUMMINS
INCORPORATED

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

Continuing Interest in

Iowa Power &
3.30%

CAROLINA

Preferred

MUNICIPAL BONDS

now

are

economic

five-year

a

She wants not
political . domina¬
economic

complete

only

Stock

Stock

commissars

go

along with

DES

BUILDING

MOINES

Phone 4-7159

9,

see

and

people of western Europe
what's happening in the east,
are fearful that they will be

CRAIGIE&CO.
Bell System Teletype:

IOWA

RH 83 & 84

The

Telephone 3-9137

Bell Tele. DM 184

Long-Bell

if

Reliance

Varnish

INVESTMENT

the

509

1st,Quarter Earns, per

per

continue at

is

Kentucky Home Life Bldg.
2, KENTUCKY

Members

Louis Stock

St.

Exchange

sh._$1.37

peak rates

genuine desire among the na¬
of western Europe to allay
and

whole.

-

any

of

the world.

or

any

The Marshall

other plan will ac¬

complish little or nothing unless
trade barriers are reduced to per¬
mit a freer interchange of goods

CO.

and services.

Dearborn 1501

Paris, I was
western
European
"In

SPOKANE, WASH.

For
or

of

Immediate

Execution of Orders

Quotes call TWX Sp-43

Exchange

A.M.,

Dan River Mills

from

Std.

Pac.

10:45

Time:

on

to

Floor
11:30

Sp-82

Co.

★

are

made two.

has

"Russia

in our

fighting
colossal

blunders in the

(Stock Dividend

distributed by North

at

SOLD

BOUGHT

other hours.

ide¬

in

interested

is

"Russia

and

ologies and not in people,
she will force sacrifices on

.

her

QUOTED

„

undermining our own econ¬

out

That must never

omy.

be allowed

happen.

to

to revive
depends entirely

world order and
economy

Our

home.

we're

after a

sheet

decision as to what

be deter¬

going to do must

mined by the

at

strength

continued

our

on

of helping to re¬

chance

"Our
store

looks of the balance

reckoning of what

do for herself and a
reckoning of what we can spare
Europe

to

can

herself.".,

help her help

Co.,

American Co.)

are high
some sacthat with¬

come,

to

generations

enough for us to make
rifices now. We can do

•<

<;

O'Rourke Co.

to The Financial

ILL.

—

Chronicle

Stanley I.

formerly with Rogers &
Inc.,

has

become assoJ
O'Rourke &

with John P.

ciated

Board of Trade

Flint Rejoins

Building.

Rogers Tracy

Special to .The.Financial

Chronicle

—»

CHICAGO,

STANDARD SECURITIES

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
LD 11

^IllllllllllllllllllllllllllllJlllllllllllllh




Flint

CORPORATION
Members Standard Stock Exchange
of Spokane

Brokers

-

Peyton

Dealers

-

at

Kellogg, Idaho and Yakima, Wn.

has

Rogers
Members:

Chicago

Stock

Underwriters

Building, Spokane
Branches

Tele. LY 83

weapons

because we are
with economic weapons.

Tracy,

COMMON STOCK

*
—

of the

hands,

Sweich,

Wisconsin Electric Power

SECURITIES

m

Bassett Furniture Ind.

between

most

CHICAGO,

NORTHWEST MINING
Co.

intensified struggle
the two worlds of today,

"But in this

Special

«

be simple.

choice would

the

told that the
nations are With John P.

rflllllllllllllllliiilllliiiiiiiiiiiiiiiiiiiii

American Furniture

picture.
There are risks both
ways.
No decision we make will
be all to the good or all to the
bad. If it were all black on one
hand and all white on the other,

world

.

practical program
greater exchange
of goods and services among the
nations of Europe and with the
"Fourth,

rest

COMSTOCK &

be

must envisage a

request.

St.

people would not long

mistrust of each
other and of America—a real will
to work together for the good of

Teletype CG 955

Trading

There

shadings in the

I

suspicions

analysis available

231 S. La Salle

LYNCHBURG

cur¬

tions

CHICAGO 4

Bell Tele. LS 186

worthless

support.

plan

LOUISVILLE

Long Distance 238-9

as

always

black.

or

people to strengthen her frozen
believe the plan world of totalitarianism.
"If we're going to help Europe
must be self-liquidating.
Other¬
wise, it will degenerate into an help herself, we've got,.to make
international dole
which would some sacrifices voluntarily.
The
not build a sound foundation for stakes in this contest, which will.
decide the fate of mankind for
recovery in Europe and which the

Incorporated
lat Floor,

white

too many gray

are

countries.

some

"Second,

St.LouisI.Mo,

BANKERS BOND ^

was

of

fear

tion in

.

on

m

would

in¬
dustrial and agricultural produc¬

STREET

OLIVE

this

the

Detailed
C

answer

us

choosing

people would
Marshall Plan and stay

is not an easy
The choice that lies
isn't a
question of

to make.

before

American

whether-we

;

,

Not Easy

decision

"Our

,■

I

in co-operation with each
other,
worked
out
a
practical
program
to help make Europe
self-supporting and self-reliant. '

Approximate Price .—$15.00
per share

SECURITIES

..

rope,

,

Co.

,

wherever

this:
that, in my judgment, the Amer¬
ican
people
would
support
a
reasonable program to aid Europe
provided the countries of Eu¬

Company's earnings and operations

Murphy Chair Company

true

withdraw. again from Europe
we did after the last war.

$2.50

Earnings

1947

Girdler Corporation

this

support a
with
it, or

American Turf Ass'n

Stix & Co.

found

of action.

course

Decision

of hope since

"Third, I believe there must

share,

1946

II. Willett

ray

our

on

the

given western

war.

million

ours,
140
must decide

Americans

went, and everywhere I was asked

a

Consider

of the

of

in the Kremlin have
decision. But in a de-~

like

mocracy

Eu¬

one

"I

Common Stock

American Air Filter

prospect

Plan has

American

Lumber.Company

ST. LOUIS

LOUISVILLE

the

Europe its first
the end

faces

winter

Four¬

aggression.

and

men

made that

rencies which is holding down

RICHMOND, VIRGINIA
EQUITABLE

teen

absolute

also

"The

Meredith Publishing Co.

pansion

there to

her program

on

last decade. First,>
Conditions for Success of
there was her pact with Hitler, /
domination over them.
Marshall Plan
and now there has been her boy¬
"Russid is dangling her current
In
"I told 'thfem that', four1 condi¬ cott of the Paris conference.
large wheat crop and her natural tions were essenti&fc
every country I visited, I found
resources before the hungry eyes
the boycott hid hurt the cause of
"First, that the
countries of
of a starving continent as bait,
the Communist party. A trade re¬
Europe
must - put
their
own
but as always she has a large crop houses
in
order,
balance their vival under the spur of the Mar¬
of political commissars as well.
budgets, build sound currencies. shall plan would be a further kick
She is saying that she can give Without sound currencies, farm¬ in the pants to the Communists;
Europe
everything
the
United ers aren't willing to sell their it could even serve as a magnet
States can give it and more, but
produce, and workers have no in¬ to draw away some of the vassal
when she delivers assistance, po¬
centive to produce or to save. It states from the Russian orbit.
but

tion

it.

■F. W."
Common

with

litical

Light Co.

intentions

clear," he added. "Up to this time,
her
relations
with her
vassal
States have been largely political.
Now she is trying to tie them to
her

Marshall

"My

plan of her own.

Stock Exchange Bldg. Phila. 2
Telephone

,,

"Russia's

Cement

Company

Warner

not

sented.

Sterling Motor Truck
Nazareth

Paris conference," Mr.

asserted, "dissipated the
the fiction that she
interfere
in the sov¬

ereignty of those vassal States. I
found that the people of the coun¬
tries I visited wanted to be repre¬

Empire Southern Gas

Boston & Maine RR.

partici¬

last vestige of

Empire Steel Co.

-

orders to

States not to

vassal

pate in the

BOSTON

Paris conference."

"Russia's iron-handed
her

mind

made up
of ex¬

already

has

"Russia
her

no

delaying

one

to which we

prepared to go to help Eu¬
rope—and how soon.
We can't
delay too long.

"Time is running out on us. An¬

Johnstoa

Eric A.

no

next

decide

are

the. veto.

use

the

designed

There is

been

the

done,

and the extent

how

cooperate

there have

deliberately
tactics.

—

in

fied

because

ress

intensi¬

been

Walnut Street, Philadelphia 2

1420

to

is

will be up to us—to

move

Russia, but Russia's veto has
always stood in the way.
The
Paris conference is making prog¬

society on the
has

other

Curb Exchange

New York

stein bros. & boyce

Philadelphia

York,

New

trying

this

"When

be

with

totalitarian

Angeles Stock Exchanges
Also Member of

Two

by

program.

that

not

longer by Russian
years
have
been

any

wasted

frozen

a

shall

recovery

vetoes.

a

hand

one

and

BUCKLEY BROTHERS

Common

Members

cratic

Coal

—

determined

now

back

held

demo¬
society

free,

Request

on

on

Common

Kirby

politburo
democracy of

farther.

no

Europe and the United

are

economic

the

east

far and

go so

"Western

States

and

west

the

Drug

Class A & B

Franklin

can

political
of

democracy

,

*
,
moving rapidly ahead with their,
own
plans to develop a recovery,

:
next unless Russia is told that she

two worlds

PHILADELPHIA

of Credit Jewelers in Chicago on July 28, Eric
returned last week
which he conferred
political and economic conditions, said that "the struggle

Speaking to the National Association

Johnston, the president of the Motion Picture Association of America,
from a five-weeks' trip through 11 European countries,- in each of
with

Co.

BALTIMORE

'

and mistrust should be

order; (2) plan must be self-liquidaling; (3) national suspicions

put house in

branch

a

Upholds Marshall Plan

Eric Johnston
In Chicago
ate.

Special to The Financial Chronicle

A.

Opens

Thursday, July 31, 1947

CHRONICLE

THE COMMERCIAL & FINANCIAL

(426)

6

225

EAST

MASON

PHONES—Daly 5392

ST.

Chicago: State 0933

Exchange

MILWAUKEE (2)
Teletype MI 488

ILL.—Arthur McG.

& Tracy,

La Salle

the

staff of

Inc., 120 South -

Street. Mr. Flint has re¬

cently been with
!

.

rejoined

mick & Co.

Kebbon, McCor.

'i

Volume

166

Number

4616

Marshall Plan

THE COMMERCIAL & FINANCIAL CHRONICLE

Hopes and Fears

observer

By EDEN B. TIIIRKIELD

Economist for Wainwright, Ramsey &
Lancaster, New York City

notes

widespread popular interest in Marshall
Plan both in its political as well as its economic
aspect.
Sees
fear that aid under plan, if
widely distributed, will be ineffective,
and failure of plan may drag Britain towards
the Left.
Wants
deferment of Sterling convertibility.

com

the

wars

Greece,

course

Germany ,wpuld continue to
require constructive American in¬
tervention.

Indo-

nesia

and

China

There

"atten¬

in

tion. In politi¬
cal and busi¬

trains

'in

hopes

and

fears

the chances of
the

plan.

last

even

Dr.

Paul

Einzig

At
the

in

man

street

the

is

beginning to realize what is at
stake, and is beginning to take an
intelligent interest on technical
questions such as hard and soft
currencies,' n o n - discrimination,
unrequited exports, convertibility
of sterling, etc. The possibility of
substantial cuts in food rations in
the

case

is

Plan

whittled

down

rejected

or

Congress is
Nor is this the
The probable
political consequences of a failure
by

freely envisaged.

worst thatds feared.

of the Marshall Plan to
ize

consequences.

Until

even

than its economic

graver concern

.

material¬

with

envisaged

are

there should deteri¬

„.

cles were inclined

to believe that

a
major economic crisis, by dis¬
crediting the Socialist Govern¬

ment, would lead to a Conserva¬
tive revival.; The ihore realistic
among them are
that any change

now convinced
in the political

trend in Britain could in existing
circumstances be only towards the

left.

given

a

use of

the

by

breathing

presumably

legislation
of

more

mean

and a
foreign

British

;■--'I, The political effect
of

sence

the

even

to

interpretation
Loan

of

Clause

Agreement

9

At
utive

right direction.

As

far

as

it

which

it

dollars.)

and

materials

raw

could not afford to

But

it is

enough,

it

as

excludes

the

every so

equal)
exports

American

but

ican

so

within

resources

next

12

months, because then British pur¬
of American goods would
be curtailed just about when the

ab¬

That

Plan,

be

more

'munist

the

chases

un-

would

even

good story

a

other

a

buyers' market

under

the

Marshall

Britain' would not receive
than a fraction of the dol¬

lars needed to meet the huge defi¬
cit, of its balance of
payments is

party is numerically inf now
considered
certain.
.Why
significant and has only a nui* then, it
may be asked, is Britain
sance yalue.
In France and Italy, forced to use up its dollars ■ in
on the,other hand, there are large
the near future, as a result of
and powerful. Communist parties,
non-discrimination and converti¬
and an aggravation of "the eco*bility?
If both principles were

meeting.

Too

many

a

to

on

and

poor

a

business

are

turned

Communist

tire Continent would

der

Moscow's

For

this

the

soon

en¬

greater benefit to both countries.

be

un¬

At

control.

two

entertained

whether after

have

just
and

places of business of one kind or
another.
Throughout this coun¬

try's history from the beginning,
the resiliency and
ingenuity of

all, the formula of

United States is-able, and willing
to
contribute towards European

and

been

sufficient

support

to

where even

the

generally lax
indifferent government prev-

areas

and

vail.

That

these

ing fewer is

a

areas

cause

are

reconstruction
away

among

.would be frittered

large number of

a

participants.

The

that

be

it- would

.view

a

more

policy to concentrate

on

held

is

realistic

the

coun¬

tries the fate of which will deter¬

mine

that of

the

of

rest

Europe.

If Britain's position becomes con¬

solidated through timely, and ade¬
quate assistance, it would be in
a

position, in

smaller

turn,

to

assist

countries, as
indeed it has been already assist¬
ing them far beyond its means.
to

be

States,

dollars left

ture.: At present the United States

export

in

any

case

Municipal
It is

Administrative

Laxity

they

be supported

by

are

the
too

by Britain.




United

large to

the

a

management of

scant notice

in

comparison to the
given the most minute

directing
obvious-i

orders

to

other

by

Would

help

provided

sum.

such

The

means

frequent laxity in both the

'

The

"administration

serious
places it is

many

least I
has
such

that

would

be

available under that plan could be

And, of made to

go a

longer way.

-

a

the

review
reasons

.

.

of

a

has been made.by an examination

of personnel

of

departmental
functions
and
preparation of new organizational

as

charts.

to

view

Quite properly such
is

the

approach

to

cities'

and

re¬

is

it

most

intrade-

partmental renovation and revi¬
sion.
Looking into departments

I

Some weeks later the response:*
this request began to appear

and

direct

most

inter-

a

conforming as nearly
possible to the diagram.

worth

recent

personnel

that the
diagram of
drawn up in 191V.
noting

chart

was

(Continued

or

on page

!

THERE ARE BONDS
AND BONDS!

GAUGING calls pulseexperience backed every trad¬
the for of the markets by knowl¬
ing day
edge of jnarket conditions and trends.
business

.

,

.

and it enables

us

to serve

That's

our

faithfully and

well

an

ever-growing

number

of

dealer

friends

throughout the country.
Every transaction that

we carry out

dealer—cements

that brings satis¬

firmly

more

some

made
a

of

the

misplaced.

Keeping these dealer "bonds" strong and effective
is

important to us—we'd like to

be to

important they

can

for

time.

help at

any

you,

'

prove to you

So call, wire

or

hov/

teletype

*

in

management
this

country.

Happily, there is an increasing
public consciousness that further
socialization and bureaucracy wili
only' add to current ills. Those
who have been

R. W.

Pressprich & Co,

68 William Street

Telephone HAnover 2-1700

NEW YORK 5

Teletype NY 1-993

201 Devonshire

Street, BOSTON 10

Members New York Stock

Exchange

efficiency that

business

success

dubiously

success-

our

mutually profitable relationship. We intend to make
certain that this confidence is not

business;
so

of

for

employee. It was also asked
that the latest diagram of depart¬
mental operations be brought in
to the" city executive manager's
office accompanied by a schedule

In at least two
fairly large cities
in the last several months a valu¬
able contribution to consolidation

com¬

in
regarded.

re¬

each

process,

traditional "friendliness" of "city
halls"
can
be
blended
with at

uable than anything the Marshall

amount

and

of

would be incomparably more val¬

limited

submit

to

needs

and

a year;

countries?1

by

their

else put
there is

Moreover, penetrating looks have
been cast more frequently of late
or
two the British purchases by
into musty
corners
to learn as
allowing Britain to divert some nearly as possible just where the
it not be better to defer

quested

consideration.

faction to you—as a

rathermore! munity. I is

than they really want to:

wholesome

All department heads were

intercity consolidation, the pos¬
sibilities of intracity
piecing to¬
gether of closely related' depart¬
ments might well receive serious

for genuine re¬

electing officials to public of¬
fice and gauging the results of
Britain a chance to slow down the! their operations after
they have
pace of Its present dollar expend!-! assumed charge of local affairs.

Italy too would have' Plan could possibly offer; and the

supported
as

more

the

continental

France and

no

buy, them. It might be, there¬
fore,' more advantageous to give;

a

on

reasonably efficient basis and

without visible corruption.

of

grow¬

joicing.

the dollars are soent attention
food, tobacco and films, details of operating and
American machinery individual business. Yet,
and equipment that is vital for; ly, the
community is the
reconstruction is not yet available. substance of
everything
By the time they become available together.
Nevertheless,

to

and

emotional than logical.
Before proceeding into the area

business have

over-all

trade

the

the Marshall Plan is the right one/
«Under it the
amount
that the there will be

conducted

were

and

who

assets—homes

of

sorts

on

because

that the affairs of the community

trade is within their borders or is

nearby.' Communities

present

mainly

doubts are
reason,
in
many
quarters

luctance, believing, sincerely
enough, that an analysis would
only confirm the traditional belief

de¬

exist because

cities

rede¬

mentioned entered into the propo¬
sition of renovation with some re¬

otherwise—must

produces satisfactory results.
Towns and

or

of the two cities

eager

executive

an

psychological oddity that
places where
nomic situation is certain to put
suspended for the present, Britain the most efficient, ingenious, in¬
them into power, whether by con¬
could husband its dollar resources,
dustrious, and mentally and phys¬
stitutional means
or
otherwise. so that
they would be available, ically alert and virile people in
Once these two major countries
when they
could be spent for the world live, receives relatively

have

and

one

an¬

change in
On the other hand,

of

owners

hold

and

only

face a certain degree of
opposition which is-more human

it is not

waiCfor

excuses

management.
to

—

abandoned

signed.
Officials of

,

stories usually mean
the

not

atrophied

some

thp reason is given

and the shareholders

export

surplus remains in
the neighborhood of $8 billion
per

the

to—dodge

vested in tho business; if

the Amer¬

as

wants

collect something in the form
of a^dividend on the money in¬

treatment
for
are considered

long

he

may

somewhat-ill-timed.

It is felt that

if

even

here perfectly legitimate and rea¬

sonable,

says'is subject to in¬

truth for very long. If his story is
a
favorable one the shareholders

felt

The efforts of the United States
secure

often and tell them what

What he

governing Dominions.
to

able exec¬
who, to

administrator

dependent audit and he cannot—

for

self-

corporation

a

a very

he has done with their assets.

pay

generally

of

hold his job, must face the owners
of the business, the stockholders,

it will enable Britain to im¬

goes

port food

the

of

Plan

and

.

the

head

the

usually presides

which

Britain would be entitled to dis¬
criminate in favor of imports, from
;ts
non-self-governing
Colonies
has been welcomed as a
step in

world will turn

pronounced on the
In Britain the Com-

Continent.

questions the:
operating efficiency of the
corporations
that I provide
the
world's highest material standard
of living.
'

the

of

under

Thirkield

B.

clumsy

government have become
how
easily they could be

and

always
Eden

basis of fact could at least

a

arms of

Consolidation

meant

partmental

no

per¬

on

gradually

to

themselves,

sheer

an

chilly and unre¬
which is dead but

consolidations

is

of

sources

but profitable consolidations with¬
in
communities

seriously

son

this

and

the
merging of Separate communities

un¬

gainly but
thinking

From this point of view
the reported decision of the United
States Government to
agree

by

seem

somewhat

sources.

assistance

adequate
Marshall

more

may

a

Municipal

,

a

that

stature

for

Opposition

have
to

profits

sponsive corpse
hard to bury.

the

of

grown

space secured
of these
re¬

possession

coun¬

nations

chance to make the best

the

lar

policy in favor of Moscow.

*der

Some

substantial gohl reserve'. What is
more important in the
immediate
future is that Britain should be

Discontent through cuts in
annum
no
extra
efforts for its
rations, and-through unem¬
maintenance
and
increase
are
ployment caused by cuts in raw
really called for. It is not to the
material
imports, would in all
interests of the United States that
probability strengthen
the
left
Britain should use up all its dol¬
wing of the Labor Party. This

•reorientation

taxation

indus¬

any

largest combi¬

a

food

anti-capitalist

reveal how

try anywhere.

in London that it does not go far

recently Conservative cir¬

would

of

sprightly

trialized

Treasury has

about

that have been run for years on a
basis of habit and tradition instead

of

ate direct assistance is
called for.
After all, a
large part of the pro¬
ceeds of the loan is still
unspent,
and the British

their

discuss

in supplanting-corporate suc¬
with
bureaucratic
inertia

cess

have found that they have traded

earning power

Europe.

during the coming winter,
would
greatly aggravate the
difficulties of reconstructing Eu¬
rope. For the present no immedi¬

people

'ful

individual

it

in

and

shops,

of

'§>—

Aighesl, actual

no

reconstruction

con¬

and the

sumer

orate

clubs and res¬

taurants,

the

If conditions

circles, in

ness

be

can

est cost to

doubt, however,
that Britain holds the
key position

receive

Scant

cities to find
ways
tion.

<$>-

in

|

4

Haphazard growth due to unpredictable shifts in population will force
many of our
of taking advantage of the economies and conveniences of consolida¬
Merging of separate industrial units has made possible in the United States the low-

I

,

topic in Britain

By
parison

Former Assistant to New York City Comptroller urges increase in "area" and
"authority" self-sustain¬
ing projects; emphasizes that corporation management efficiency could be used to
good advantage
by towns and cities with clearing out of old practices that take heavy toll of the
municipal dollar%t
substitution of government by fact for government
by habit and tradition.

i

LONDON, ENG.—It may be stated without fear of contradiction
that the Marshall Plan is
by far the most-discussed
today.

7

Consolidation—One Answer to Municipal Ills

By PAUL EINZIG

London

(427)

GOVERNMENT,
PUBLIC

MUNICIPAL,

UTILITY,

AND

RAILROAD,

INDUSTRIAL

INVESTMENT

BONDS

STOCKS

22)

Depreciated Dollar

Dealer-Broker Investment

Should Mean Higher

Recommendations and Literature

Stock Prices
By G. Y.

Hydro-Electric Utilities

The

Lewis obtained new wage increases for his miners,
the price of coal by perhaps 750 to $1.00 a

Since John L.

(including also the higher freight rates to move the coal) there
have been some fears that earnings of the electric light and power

ton

now
,

being done.

added ^

It is true that the burden,

to increasing

labor costs, may re-

?

gional

parently

seems

which

year's earnings. But it
unlikely that it will be an

factor in this year's
earnings because
most utilities
maintain substantial stockpiles of
important

coal, and the cost of this coal will
not reflect the pending increase.

probably

Moreover,
one-half

industrial customers, since a

large

proportion of rates for these class¬
es

of customers contain "escalator"

clauses which

work more

or

less

where a
sharp rate increase to an indus¬

automatically.

Of

course

trial customer might lead to can¬

util¬

cellation of the business, the

ity would probably rescind the in¬
But

crease.

as

competitive

1945
(from
90c to 31c) due to low water con¬
ditions. In this case, however, the
share

whose

effects

exaggerated because

were

had contracted to
sell firm power to other compa¬

the

Hydro companies may also

suffer from floods, as occurred re¬

cently with Central Vermont Pub¬
lic Service, which had to pass its
dividends on the common stock.

sources

is

Following

a

erated

half their power re¬

over

quirements from hydro plants:
Fuel

Bangor Hydro-Elec.
Calif.

paid out to the

Calif.

government in income
taxes—thus the Federal Govern¬
ment
absorbs
one-third of the
Federal

Elec.

Idaho

60

26
9

Public Serv. of N.H.

70

9

Puget Sound P. & L.

4

64

32

Rockland Lt. & Pwr.

4

72

24

Pacific

Pwr.

■

36

64
,

rise

To

hydro-electric

would be a favored
marketwise. But so far as

companies
group

been

To

attempt to distin¬

little

Survey European
first

obtain

reactions

hand

to the Marshall Plan and

its pos¬

guish between the stocks of the
hydro and steam companies. One
difficulty is that there are hardly

sible

clean-cut situations — few
companies obtain all their power

berger & Company, 61 Broadway,
New York City, members of the
New
York
Stock
Exchange, is

from

one

source.

And most

com¬

sailing for Italy today
on

difficulty of appraising the
reason

important
capitals on

why the hydro

interview

practically all of
them must maintain standby fa¬
purchase
provide
against

water

power

con¬

low

conditions which occasion¬

ally prevail when there is a re-

rate

plans to visit

opportunities for
present stalemate
of security transactions between
European investors and the U.S.A.
to

investigate
improving the

Bates

Manufacturing Co.

*Crowell-Collier

-

Rockwell Manufacturing Co.

Publishing Co.

been

of

month

&

U. S. Potash Co.
on

New

Established 1879

&

June

'

England Public Service Plain Pfds.

ground story in the July
"Business and Financial
—Loewi

Gordon

Billard

Y.

preciation

Brief

—

Analyses

Joseph Faroll

million

civilian

jobs,

way,
re¬

N. Y.
;

Sound Position of the Canadian

ing is exceptionally high, and
purchasing power has thus far
been adequate to absorb complete¬
ly the enormous production of
American farms, mines, and fac¬
tories. jFarm incojne has attained
The financial po¬

is

business

strong.

A

healthy slowing down in inven¬
tory accumulation has taken place.
Business investment in plants and
equipment has increased this year
last

the

record

highs of

year."

All of this is

mounting dividend-, pay¬
More important consider¬

ments.

What lies ahead?

ation is:

Inflation
As

have

we

in

Robert Gair Company, Incorpo¬

rated—Memorandum—A. M. Kid¬

the

and

issue

current

are

*

*

England Com.

Inc.

Anheuser-Busch,

Inc.

—

Recent

Report—Stifel, Nicolaus & Co.,
Inc., 314 North Broadway, St.
Louis 2, Mo.
Hotel—New

Beacon

Statistical

Report—Amott, Baker & Co., Inc.,
150 Broadway, New York 7, N. Y.
Also available are reports on
Broadway-Trinity Place, London
Terrace Apartments, Wall & Bea¬
ver Streets, and 870 Seventh Ave.

Co.

—

Serv¬

Public

Analysis—Ira Haupt

Co., Ill Broadway, New

price inflations have followed all

Direct




Wire to

Chicago

New

&

—

Cotton Mfflfly
Mohawk Val¬

G«n-

and

Showcase

Weber

Fixture

Analysis—Fewel
& Co., 453 South Spring Street,
Los Angeles 13, Calif.

Co., Inc.—Recent

Webster Chicago Corporation—

Analysis and Outlook^-Also copy
of letter mailed to stockholders by

company—Brailsford & Co.,
La Salle Street, Chi¬

South

cago

4, 111.

York 6,

N. Y.

COMING

wars.

Certain-teed

Corp.—

Products

nickel or a dime
opened a youngster's eyes—and
only a few years ago it took a
quarter to produce the same effect
—but a few years hence it could
easily require a dollar to cover
the
quarter.
This is something

EVENTS

Memorandum—Otto Fuerst & Co.,
New York.

the

gift

of

a

stock

Chicago, Rock Island &

Pacific

—Ira Haupt & Co., Ill

Broadway,

Colorado Milling & Elevator Co.

Field

(Boston, Mass.)

National Security Traders
ciation
Hotel

6, N. Y.

Investment

Aug. 10-14, 1947

Memorandum

Railroad—Detailed
New York

In

Street, New York 5,

William

57

market has yet to

annual

convention

Asso¬
at the

Statler.

Sept. 20, 1947

(Chicago, 111.)

The public has not,
Municipal Bond Club of ChL
recognized the —Memorandum — Buckley Bros.,
cago Outing.
•
1420 Walnut Street, Philadelphia
full meaning of the fact that gov¬
2, Pa.
ernment debt was $1,188 million
Nov. 30-Dec. 5, 1947 (Hollywood,
Also available are memoranda
in 1914; $25,482 million in 1920;
Fla.)
Eastern
Corporation
and
$72,422 million in 1942, and $269,- on
Investment Bankers Association
422 million in. 1946.
No amount Southern Production Co.
Annual Convention at the Holly¬
of pious explanation from politiwood Beach Hotel.
cos can minimize the significance
Disticraft, Inc. — Progress Re¬
of these few simple statistics, be¬
port—Bennett, Spanier & Co., 105
cause therein lies the root of all
South La Salle Street, Chicago 3, Bonds of City of Brisbane
.venture to say,

evil.

According to a comprehensive
just issued by the Com¬
mittee on Public Debt, headed by

Illinois.

Drawn for

reoort

Vice-Chairman

tional
and

City

Bank

distributed
of

of

and

under

the

Na¬

prepared
the

representatives

aus-

of New

York Life and Mutual Life Insur¬

29 BROADWAY, NEW YORK 6, N.Y.

Street,

Wall
..

ley Investing Co., Inc., 238
esee Street, Utica 2, N. Y.

208

Vermont

Central
ice

II, history proves that major

Co.,-1
N. Y.

Circular

—

the

somewhat monot¬

prior to and subsequent to World

nices

Gilbert J. Postley & Co.

York 5,

Utlca & Mohawk

*

War

the

Northern New

&

der

eight of the Canadian

,

Northern Indiana Pub. Serv. Com.

&

Cable Corp.

Provinces.

pointed out before, both

onously

New

history and is be¬

ing reflected in the brilliant earn¬
ings statements now being pub¬
lished for the second quarter—
in

Also

ment

Place,

Exchange

40

5, N. Y.

...

analyses on
Stern Textile, Inc., and
are

Stern

studies of The Dopiinion Govern¬

level.

tion,

.

.

available

Also

Rome

Dollar—Study in the current issue
of "Quarterly Canadian Review"
—Dominion
Securities Corpora¬
York

Trust

Co.—Analysis—C. E. Unterberg &
Co., 61 Broadway, New York 6,

v

,

National Bank &

Public

—

Broad¬

& Co., 20
New York 6, N. Y.

,

garded by many as impossible of
attainment. Our standard of liv¬

above

Digest**
East Mason

225

&. Co.,

issue of

Street, Milwaukee 2, Wis.

we

of

Co.—Timely back¬

Pen

Parker

Kalb,
Street,

Six Stocks for Income and Ap¬

fully reflect.

Request

Paine, Webber, Jackson & Curtis
,

—

Co., 15 Broad
York 5, N. Y.

New

by

Memorandum

—

Voorhis

to materialize.

record

Corp.—Mem¬
only—Adams

Adams Street,

Co., 105 West
Chicago 3, 111.

Regional Aspects of Rail Invest¬
ments

sion has failed

we

,«

—

&

month "reces¬

even

Salle Street,

La

231 South
Chicago 4, 111.

Co.,

National Terminal

recession;

that the

*Prospectus

Developments

realistically, we might observe
that a quarter of a century ago

Liberty Products Corp.

Buckeye Steel Castings

Building, Louisville 2,

Lumber Company—
analysis— Comstock &

Long Bell
Detailed

orandum for dealers

Looking at the present situation

Trading Markets in Common Stocks

Bank¬
Kentucky

Inc.,

Cur¬

talk

has

the

probable re¬
sults of the Marshall Plan.
Also
on

Co.,

by

Month

a

Chemical, and Argo Oil Corp.

on

during the
Hickey, 49 Wall
Street, New York 5, N. Y.

.billions

60

analyses of
Co., Os¬

are

Dearborn

good Company "B," Wellman En¬

securities—The

Bond

Railroad

month there

of

available

Also

week—Vilas

of

annually.

and

European

industrialists

cilities, or
tracts,
to

(July 31)

financial
a two months' tour to
leading
bankers and

companies have not gained in pop¬

ularity is that

European

the S/S Saturnia.-

Mr. Wiesenberger

situation.

Another

the

on

Arthur
Wiesenberger,
senior partner of Arthur Wiesen¬

panies buy some of their power
from other.companies, which adds
to the

effect

economy,

any

at

sition

Financial Centers

the writer is aware there has thus

far

2

88

in

fuel costs in recent years, it might
be assumed that the

10

Edison-1

New York.

rent action in the field

services

__

62
91

21

Calif.

goods

and

In

33

Sierra

Kentucky
ers

reached a level

/'

Corp.—

Lubetkin &
Co., 41 Broad Street, New York 4,

pro¬

3

13

Motors

Graham-Paige

Kentucky.

$225

Street, New York 5, N. Y.

Analysis—Seligman,

&

and

now

3

56

So.

rapid

of

16

—.

40 Wall

N. Y.

Local Notes—Brief comment

duction

a

Me¬

gineering Co., Tennessee Products

Home Life

ducing

—

Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.

pro¬

are

Inc.

Consolidated

civilian

89

11

factor.

the

records

91

Penn. Water & Pwr.

celled, but it is still an important
Considering

with the
President's
mid-year report on
the
economic
situation,
issued
on
July
21,
stating in part:
"At mid-point in the year 1947
we have surpassed previous high

Airflow,

morandum—Fitzgerald & Co., Inc.,

Earnings Comparison for second

cession is at hand came

84

40

Fleetwood

Companies of

quarter of 1947 of 19 New York
City Bank Stocks — Circular —

boom

a

8

Pwr.

Trust

York—Comparative

New York 5,

recognition of the fact
rather than a re¬

Official
that

6%

Power

firms mentioned will be pleased

parties the following literature:

ciation.

1

99%

interested

figures
as
of June 30 on leading banks
and trust companies—New York
Hanseatic
Corp., 120 Broadway,

though in his¬
torically high area, are not at a
level justified by dollar depre¬

Pwr.

Pacific Gas & Elec.

profits tax has been can¬

Banks and
New

stock prices,

ent

Pwr.

Wtr.

Holyoke

Purch.

Hydro

y

Power

Oregon

Central Maine

higher costs. Of course this pro¬
tection is decreased now that the
excess

compa¬

(other than holding company
subsidiaries) which in 1945 gen¬

the fact that 38%

of net earnings is

list of

nies

Another factor which will soften

is

only 65 cents of prewar

value, Mr. Billard contends pres¬

company

nies.

(such as diesel engines,
etc.) are also rising in cost this
would probably not be necessary
in a majority of cases.
burden

in

earnings

dropped nearly two-thirds

of power

the

Gas,

is South Carolina Electric &

send

to

Co.

Pointing out the dollar now rep¬
resents

being

Power

One exexample of sharp earnings fluctu¬
ation in a hydro-electric company

commercial and

along to

passed

are

outstanding example.

an

be

can

very

difficulties—Idaho

one-quarter

increase

the

There are apfew
companies
wholly free of drought

drought.

duce next

to

business

badly hurt, despite the record-breaking

be

industry will

It is understood that the

BILLARD

Partner, J. R. Williston &

which threaten to increase

Thursday, July 31, 194T

FINANCIAL CHRONICLE

THE COMMERCIAL &

(428)

8

problem
national
debt left us by the war. This debt
affects the life of every man and
woman in the country and it will

ance,

"the

core

of

the

is the huge size of the

...

-

(Continued

on page

32)

Fairbanks

Co., 120 Broadway,

&

New York

1,

5, N. Y.
Also
on

available

are

memoranda

Taylor Wharton Iron &

Purolator Products; Upson
United Artists; Vacuum
Fleetwood

Corp.;
mant-

Air

Lawrence
Slorlitiir

Flow;

1957,

sinking

of the City of Brisbane

that

notified

being

are

30-year

gold bonds, due March

5%

fund

Redemption

of

Holders

Co.—Circular—Ward

$101,000

Steel; principal amount of these bonds
Corp.;

have

Lanova

Portland

•

Ce-

Mntnrs: Diehnld.

The
the

drawn

been

Concrete; demption

on

bonds
head

by lot for re¬

Sept. 1, 1947, at par.

will

office

be
of

redeemed at
The

City Bank of New York.

National
..

^

Volume

166

Number 4616

THE COMMERCIAL &
FINANCIAL CHRONICLE

(429)

Diges Study oi Taft-Hartley Act
Pope, President

Equitable Oifice Building Reoiganization
Sets

Col. Allan M.

of First Boston
Corporation, tells
to operate under its
provisions "with justice and fair¬
becomes paramount concern."

business how

1

ness now

New Pattem
By ALEXANDER
B. MORSE

In his

opening address at the Seminar
Meeting of the Commerce
and Industry Association of New York
on July
29, Col. Allan M. Pope,

Securities analyst,
reviewing the success of the stockholders
of the financial
in using an
district's largest
underwriting to save their equity from
building
foreclosure, ponders the availability of the method
in future reorganizations.

the

Presidentsof the

organi-, ships

zation, who is
also President
of
the
First

between

labor

present

dangers also

management

themselves.
are

and

Grave

The reorganization of

inherent in the

situation unless both
management

the

Boston Corpo¬ and labor
fully' realize their re¬
ration, stresses sponsibilities not
only to them¬
the importance selves
but to each other and deter¬
of making the mine
at the outset that
these obli¬

and

for

management
to determine

the

Pope

the

obligations

of

outset

each

fair

"The
the

Taft-Hartley Act is
of

to

operate

provisions with justice
ness

i"

becomes

now

to

concern

of

and

"Great

of

peaceful

men

the points of view of
who have lived for
years with

ing
the

the

labor

business
set for a

the

relations
that

so

a

problems

of

guide might be

future free from indus¬

beyond

its

history

fice

92%

of

delays in judicial proceedings and anticipated difficulties
forcing Taft-Hartley Act will be overcome.
Management

could

render

"constructive public

a

utilizing the free-speech provisions of the
employees,
<$>.

Taft-Haritey

in

^service"

illusory; utterly impossible to at¬
neither labor

effect

tain.

the

of

new

escape:

ethurst,

law,
Raymond
m

Counsel
the

«

Let

National

ers,
in

war.

laws

can

no

legislation,

gov¬

survive."

Mr.

of the

Smethurst

said:
R. S. Smethurst

Rela¬

try, Silver Bay, N. Y. on July 25.
has

misrepre¬
sented," Mr. Smethurst said. "It
is not widely understood. A pro¬
gram to inform employees, fairly
been

objectively, could allay much
doubt, fear and uncertainty.
It

and

would

constitute

a

constructive

public service."

opposition to the
new labor law by organized labor,
Mr. Smethurst suggested that ex¬

en¬

slowly
another

revised.
sought

One

state

after

to

minimize the
economic loss from labor
disputes

by regulating union or employer
practices believed to be
contrary
to the public good.

"Responding to

similar public
demand, administrative agencies
and the courts began the
process
of

modernizing

to

conform

a

Federal

policies

present conditions
realization has
steadily grown that policies origi¬

problems would invite intensified
government intervention

nally designed to build strong la¬

"Temporarily, at least, the new
face

the

constant

sition of organized labor,"

•

opo-

he said.

"Litigation and boycotts may de¬
lay effectuation of its purpose. In
all probability, unions—like em¬
ployers in the mid-thirties—will
grow
tired of expending large
sums in litigation.
"Perhaps both sides, given more
nearly equal remedies under the
law, will ultimately weary of the
delays of bureaucracy and judi¬
cial
proceedings.
If labor and
management reach that realiza¬
tion, perhaps both will be more
disposed to settle their own dif¬
ferences
peacefully,
at
home,
without government intervention
and with due regard to the inter¬
est of those they both must serve'
the consumer.
"Such

a

and

confirmed, and
appeal had expired.
At

two

noon

building
a

on

hours

new

the

result may be wholly




and

to

The

needs.

bor

organizations were not ade¬
quate to assure a degree of public

responsibility
labor's

newly

time

for

July 11, 1946, just
title

to

the

to be transferred

was

corporation,

a

to

of

group

represented

by

T.

Roland Berner intervened
with an
offer
to
save
the stockholders'

holders.
vided

new

strength

and influence.

"Viewed

full
the

of

payment
debenture

of

pro¬
the

holders

with

interest, they unanimously
it, as was readily under¬
standable, since the price of the
bonds

.had
of

risen

to

principal

double

the

interest.

The Circuit Court Decision

The

resulting legal issue was
decided in favor of the stockhold¬
ers
by the United States Circuit
Court of Appeals and the
Supreme
Court of the United States
in the
case
of Knight v. Wertheim.
In

ruling that the offer did not come
too late, the Circuit Court of
Ap¬
peals

specifically

distinguished

the situation from

The

Joins R. S. Hays Staff
Chronicle

N.

C.—Henry S.
Lougee is now with R. S.
Hays &
Co., Inc., Ill Corcoran Street.

With S. Wade Marr
(Special to The Financial
Chronicle)

ELIZABETH,CITY,
Murph is

S. Wade

now

to

is

an

a

sent

was

N. C.—John

connected with

Marr, Carolina Building.

"produce enough

off

pay

underwriting

to

Court

be

of

opened

July 7.

July 7, two sealed bids were
and opened,
one spon¬
by the Manufacturers Trust

received
sored

they

which

Circuit

Co., and the other from a
group
headed by Wertheim & Co.
Wertheim & Co. offered to

un¬

derwrite

an
offering to stockhold¬
share for share, of new stock
at a minimum of
$5.50 and a max¬
imum of $6.00 per share. In ad¬
dition, stockholders were to get

to

the

considera¬

improved

their

The Court agreed but

hearing at

the

Newman,

the Manufacturers

tion of this new
bid as a violation
of the sealed
bid procedure and
the
understanding of the parties
when

On, the

ing which would
comply with the

returning, they made
identical in substan¬

counsel for

interest."

and

dered the Trustee
to
advertise
for sealed bids for an
underwrit

On

On

offer

to
holders

application of stockholders
Knight
Doyle, filed by Mr. Berner
as counsel,
the District Court or

on

Wertheim & Co. asked for

debenture

the

of

both bids to the stock¬

Douglass

to

money

improve their re¬
and, if the SEC ob¬
met, would approve

group, objected

which

and

mandate

were

send

new

as

the

opportunity

an

would not receive
new
bids, but
would permit the two
underwrit¬

tially all respects to the improved
offer of the
Manufacturers group,
but cutting the
compensation still
further.
Mr.

whose

to

un¬

if it

the

bidding.
Judge Knox then stated that he

a

occasion

back

reopening

a recess.

are

cash bid¬

auction

meant

upon,

But

pitted

no

The

to

await

the

will

be

bids.

adjourned

report of the SEC,
made at the next

10:30

a.m.

on

Aug. 4.

Although the role of the SEC
in Chapter X
proceedings is ad¬

visory only, its
are

often

the

here,

recommendations,

given

great weight by
The considerations

Courts.

transcending the

out

case

of which

they arise, will influence
entire reorganization field.

the

The financial
community will
therefore watch with the
greatest
interest the outcome of the
pro¬

ceedings in the Equitable Office

Building

reorganization to deter¬
mine whether or not
free com¬
petitive bidding for

underwritings

will be possible in
reorganizations.

share for ten old and the
underwriters were to receive
50,-

Holman R. Wilson Is
Candidate for LI. Gov.

one new

000

new

The

offer
first

shares

as

compensation.

Manufacturers

was

based

on

Trust

Co.

increasing the

mortgage from $15,583,000 to
while reducing the

$18,000,000,

LOUISVILLE, KY.—Holman
Wilson, President
kle

is

of

R.

Wilson-Trin-

Co., Louisville Trust
Building,
a

Democratic

candidate

for

interest rate from 4.4 to 4%. The
additional money was to be pro¬
vided by offering to
stockholders,

share for share, new stock at
$2.00

candidate

"We recognize that,
except upon
the extremest
provocation, courts

share, the underwriters buy¬
ing adidtional stock at the same
price.

years ago, and received
the nomi¬

will

not

auction,

upset
upon

a

judicial

sale

the ground

at

bidder has appeared who of¬

fers

more

than

the

per

knock-down

At

a

Lieutenant Governor
of

on

July

,

for

nation, but
ed

hearing

Kentucky.

Mr.
;

Wilson

State

was

of the State
was

office

the

22,

the

Securities and Exchange Commis¬
sion advised the Court that it con¬

victim of

40

48th

2s

1956

Greeley Sq. Bldg. Corp. Stock
New York Athletic Club 4s
1955
New York Athletic Club 2nd 1

Vis 1955

Savoy Plaza

3s 1956 W.S.
Sherneth Corp.
5%s 1956 W.S.

The

Wall

& Beaver St.
4Vis 1951 W. S.
Wall St. 5s 1966 W.S.
St. Realization

2-4s

1952 W.S.

61

Broadway Corp. V.T.C.

62

W. 47th

79

Realty Corp. 5s 1948 W.S.

St. 5s

500

5th Ave. 4s

870

7th Ave.

1951

1961

*

W.S.

W.S.

4Vis 1957 W.S.

following newstatistical reports

are now available on
request'. Beacon Hotel,
Terrace Apts., Wall &
Beavqr Sts., 870 1th Ave.

AMOTT ; B AKER/.&\C 0'
Incorporated
150 Broadway
Tel.

BArclay 7-4880

REAL ESTATE

SECURITIES
★

★

★

SHASKAN & CO.
New York Stock
Memberi New York Curb

New York 7, N. Y.
Teletype NY

1-588

a

Governor and heads of
nearly
a State nor¬
mally Democratic.
a

all elective
offices in

OFFERINGS WANTED

Broadway-Barclay

a

four

Republican landslide which
elect¬

SEC's Position

that

Broadway-Trinity PI, London

S.

there

case

procure

would

Alden Hotel 3s 1957
Beacon Hotel 2-4s 1958 W. S.

DURHAM,

i.e.,

objections.

Manufacturers group were
willing to improve their bid

one where com¬
petitive bids have been called
for,
saying in an opinion by Judge
Learned Hand:

been distorted and
greatly exag¬
gerated."

The Financial

and

underwriting

ers,

and

new

against

this
back¬
ground, it is obvious that the ef¬
fect of the
Taft-Hartley bill has

Special to

competition.

underwriting of Appeals, such bids

Although the offer

for

claims

commensurate with

acquired

of

occasion when all

together

principal

before

stockholders

amount

Long before

the

Taft-Hartley Bill,
nation's labor policy was
being

the

no

finality must be preserved if its
advantages are to be preserved."

than five years
the value of the

the stockholders
onlyanx8% eq¬
uity, the plan had been approved

actment

of

result

equivalent

was

more

the

a

there is

struc-

unfair to

were

On the
following day, the SEC
advised the Court that both
groups
had met its
requirements. There¬

and sharehold
different
ranks—whose
compromise in the plan itself will

be

en¬

holders.

of

brought

conservative invest¬

opposed

perience will teach both manage¬
at¬
tain peaceful settlement of their

ment and labor that failure to

will

as a

After

"Labor law, like the field of la¬
bor relations with which it
deals,
is never static.

.

Foreseeing

law

short sale of the stock

stock to the stock¬

which

o

al¬

on

groups improve their bids in
order
to
meet
SEC

and

o

feasible,

considered the compensation to
the underwriters
too high. It sug¬
gested
that
both

jections

True,

concourse

ding:

the sale of

without

a

against each other in

an

new

on

law

of

Tracing the development

tions in Indus¬

"The

time

reorganization.

plans

ing groups to
spective bids,

courts,
United States District Court with
property had bfeen judi¬ instructions
that the .stockholders
cially fixed at a figure wftiich left should
have an

can

hope, in the best interest
country, that both manage¬

ernment of

Bay Con¬

Human

one

management

in

of

presupposes

consum¬

restraint

before the Sil¬
ver

is

of

even

plan

that

situation

be

equity through

address

ference

nor

a

equity to the deben¬

At that time the

a

with whatever stimulus
that may
provide, as opposed to other kinds
of sale.
None of this
applies to

gave

ment and labor will show the
self-

suggested

an

us

of our

of

Manufactur¬

-

alternative

form

a

perienced,

for

Association

the

governmental
regulation
more
intensive
and
complete than either has yet ex¬

labor

>S

But

in

by

/

"fairly
and
objectively" of
and

while

auction,

set

ers

ago,

favorite of the arbitrageurs,

ment.

Actio inform

>

year

the plan
Equitable Of¬

holders, would
a

an

defeat

conflicting interests—creditors

re¬

certain that

the

mated.
was

of

to

debtor's

the

scope

of

regarded

en¬

a

Building Corp., which

ture

Out of New Labor Law

is

thus

and

both

stockholders, mainly because

it

bidding

different priorities

than

more

it appeared

But NAM counsel believes both labor and
management will weary

estab¬
market

quired/

Slightly

Litigation Arising

be

In order to understand the
significance of this case some fa¬

of reorganization of

desees

to

value.

miliarity with

chill

together all those
may be interested to buy and
them against each other

who

prove

—

question

bids,

very purpose
which is to fetch

only kind

can

trial strife."

relation-

to

to

the

of value which

Alexander B. Morse

lished

cessive

of

usual

ures, but that both
the

That

sale, to dispose of the
prop¬
erty by later competition on suc¬

underwrit¬

an

possibility tends
at the

the

of

machinery

benefit of

its

fair¬

for

selves

sidered

time, and may then out¬
bid the price at which the
prop¬

erty has been struck down.

Instead,

has been followed
by

from the

though they were based
tirely different financial

knowing that

bide his

of

them¬

of

prospective bidder
may abstain
from bidding at the
auction, may

their

have

sales

a

to

they

discuss

such

upon

up

availed

industrial
to

two-day seminar which
morning is designed
primarily to give management the

paramount

opportunities

and

executives

this

opens

both sides,

promotion

personnel

price (citing cases). This
unwill¬
ingness results from the
effect

reliance

value.

Building Corporation

remarkable variation

a

pattern.
developed by which junior
security holders, seeking to

f

their

opinions

"The

now

under

sole

concept of labor-management re¬
lations inherent in the
Taft-Hart¬
ley Act.

the

How

place

support

among

land," Col. Pope
stated. "On August 23, just 25 days
from today, it becomes fully effec¬
tive.

a

fully and thoroughly the
changed

play."

law

in

in
piling
testimony

relations

and

"to perform these obligations in a
spirit of wholehearted cooperation
and

performed

dustry
Association
decided
to
bring together the leading minds

and

at

be

presenting

their

"It was with these
thoughts in
mind that the
Commerce and In¬

both

labor

shall

Equitable Office

as

equity,
no
longer have to

gations

spirit of wholehearted
cooperation
and fair play.

fully effective

M.

community
preserve

Labor

Allan

financial

Tn it, a new
procedure has been

Taft-Hartley
Act

9

40 EXCHANGE PL., N .Y.
Bell

Exchange
Exchange

v

Dlgby 4-4950

Teletype NY 1-953

I

10

THE COMMERCIAL & FINANCIAL CHRONICLE.

(430)

We Are Seeking PeaceWith Justice

Bank and Insurance Stocks

-

By HON. BRIEN McMAIION*
•

,„

VAN DEUSEN

By E. A.

Democratic statesman,

This Week

Insurance Stocks

—

The 48th annual edition of

"Best's Insurance Reports—Fire and

and demonstrate

stock

,

panies, which

companies writ¬

followed

ing fire and allied lines. Sixty
companies are briefly covered
Also presented are figures on the
Canadian operations of:(l) Brit
ish and foreign companies which
are
not entered
in the United

pages

States; (2) 121 United States com¬

In the

ceding

introductory pages, pre¬
the reports, is a list of

names

of

1934765—L\.

United

state- officials
and

States

the

in

who

Canada

have

charge of insurance affairs.

This

is

several

by a section of
entitled "The Fire
should
reading" for every

and (3) 43 British and
foreign companies which are en¬
panies,

Insurance Business," which

"required

tered-in the United States.

investor and dealer in fire insur¬
ance

operations

and

resources

Canada of all

in

rate volumes.

be

of

hibit

treated in sepa¬

are

addition

In

Of equal importance

stocks.

the

to

reports

on

there is a list
statistical exhibit of all
American mutual companies, state
state.
There is also a list of
mutual companies,

is the

subsequent section entitled
"Explanation of Statistical Exhib¬

and

its," which makes clear such items
admitted assets, policyholders'

as

a

regulatory and advisory or¬
surplus, loss reserves, unearned
premiums, net premiums written, ganizations of which each Ameri¬
company is,
respectively,, a
net premiums earned, underwrit¬ can
ing ratios, statutory underwriting member; a complete list of all
results, adjusted underwriting re¬ underwriter's agencies throughout
sults, and
well

to

the

number of other mat¬

a

the

know,

dealer

ought to know and the in¬
stock analyst must know.
two pages
deal with
Best's policyholders' and financial
ratings, and an explanation of

surance

The

mutual companies and

and

reciprocal exchanges which have
retired since Jan. 1, 1947. There
is not much that this. excellent
volume has missed! *

and!

trader

country, and finally, a list of

stock

the investor would do

ters which

next

An

table

interesting

shows

which

the tremendous

growth in
been experi¬

y/e

must have not only

but

peace,

Although the human family has been confronted with a fabulous variety of problems
the years, there has been.an underlying and basic unity of the major apd fundamental
issues.
Libraries of books haye been written about those issues, and yet it is not difficult
t

o

compress

into

atomic

single

a

would

of those

sence

books

be

reckoned

in

They
a

war

tens

of

They

know

that adequate preparation
fight such a war inevitably re¬
quires decentralization of our in¬
dustry, relocation of large por¬

those issues.
For

phrase

to

that

also

represents the

tions of

population and loss of
personal freedom—measures such

and

essential

most

particular.

millions of American lives.

and

highest

in

war

know that the cost of such

phrase the es¬

our.

$676,765,000 '
614,600,000

«.

1933_______
1934__

663,355,000
,

—

,

:

:

—

685,670,000
735,985,000

802,845,000'

1938——;

1939—

;

750,960,000
799,835,000,.'
917,291,000
1,051,526,000

V

1940—
■
'

1,128,360,000

1942_,_^.___

L

r

45.9

f

46.8
49.8
53.3

1
i

.

1945—.

52.1'
57.3
58.1

.;

,

.

1,138,858,000
1,226,025,000
.' 1,642,599,000

;
'

good of

high¬

—

fore

democracy has

never

be¬

known.

1

most

and

this

as

man¬

kind

yes,

They know—and do not have to
be frightened in order to be con¬

but until now,
unatta i n e d.

vinced
that if. we assume that
other nations cannot in the future

est

essential,

phrase is Sen. Brien McMahon
"peace
with
justice." "Those words make no
particular impact upon the ear;
they have lost the vitality and
urgency, of a-fresh- image.
And
yet, cliche or otherwise, those are
the only words that properly sum
up the human struggle.
And the
words must be inseparable. Peace
The

.

by itself and of itself is not the
ultimate goal.
Peace by itself, as
Professor Whitehead reminded us,

anesthesia.

can

be

self

can

ile. It

be

Peace

manufacture

Nazi Germany won

weapons

for

themselves without any help from
us,

we

with

building

are

And

security

our

they know—

deep and instinctive wis¬

a

dom

that. the

—.

against atomic

only defense
bacteriological

or.

...

since 1942

are

*An

at

address

the

$Expense ratios

Bankers to the Government in

Kenya Colony and Uganda

BANK STOCKS

York

Kenya

N Y.

Reserve
The

Telephone: BArclay 7-3500
Teletype—NY

Ceylon,

Burma,

Subscribed Capital
£4,000,000
Paid-Up Capital
—£2,000,000
Fund———
£2,300,000

Stock. Exchange.

BROADWAY, NEW YORK 5,

In India,

Bishopsgate,
E. C.

Colony and Aden ana Zanzibar

Laird, Bisseil & Meeds
New

26,

London,
Branches

Circular, on Request

Members

Office:

Bank

conducts

banking and

description

every

,t

business'

exchange

Trusteeships and Executorship*
also

undertaken

tutions

BANK AND

INSURANCE STOCKS
\

or

CAWORNIA

WEST"!

210

SE1EHTH

TELEPHONE

TRINITY

TELETYPE; LA

Analytical and
Sales Service




-

'

STREET

10S WEIES 14, CALIFORNIA

Comprehensive Trading

<-2)irtcf antl
BOSTON

•

NEW YORK

J

27,7, LA

Contacting 1 luztt

CHICAGO
DALLAS

7871

•

PHILADELPHIA
•

•

tj
DETROIT

ST. LOUIS

SAN FRANCISCO

.

SEATTLE

-

which

in

Net

it

premiums written in

will

be

observed,.were

and

lives

man

In 1932, the

greater than in 1932.

underwriting of the

companies,

group, resulted in a
evidenced by a combined
as

a

loss, as
ratio of

102.5; on the other hand, the de¬

pression years of

1933, 1934 and
1935, with relatively low premium

tack.

•

And

enough.

against. at¬

Not Enough

Written

the substance of justice if it is to

it is possible to pursue the. mission
most

.1,643
.

.

,

And the word which

precisely

values is

all these

expresses

justice.

:

/

'

.

depends have been unable to find

process?

There

is

absolute answer, of course, ex-

the

reports

on

Russian—people hoped in Au¬

for

security
enough, but

has

have

would

>

been

that common hope
been over-shadotved—indeed,

all but blotted out—bv

a

ominous antagonism.

and

growing
Within

the last monfh, we have seen not

only the deepening but the hard¬
The most
promis'ng slogan of
only two years ago—"One World"
—has now become plural.
ening of

actual rift.

an

hopeful

and

This fact strikes

surprise.

With horror

us

And yet, what hap¬

pened in the last two years could
been

predicted.

The mush¬

rooming hostility, the moves and
counter-moves, , the; ominous de¬

bution/of <premiums

which

terioration

reports

: *

the

in

health

nations—all

the

of

these
record,; because of exceptionally were foreseeable given the frame¬
work within which-they were to
low. fire and overall losses..
•1
take place. Nor does one have to
v
Another striking difference be¬
be a prophet especially to foresee
tween 1932 and 1946 is the distri¬
the -consequences of a further de¬
follows:

as

Best

family

<

of

Oceam

-All

Inland Tornado
Marine

Z

29

'

31

Others

&Hail
;

/

35

V

50
„

6

181

struct

record; list of officers and
directors; - a break-down of pre¬

writings,

penses

for

losses

the current

and
year;

a

We

present
where
the

of

the" next

next

the

few

few

have

only- to con¬
rough graph plot in the
rate of disintegration to

see

.

dend

mium

within

years—or neven '

-

months;.

...

.

individual

The
sure

am

gust, 1945 that the common hope

;

The

people—and I

terioration

877 ; , 268
119
148
(Note: figures in $000,000);

1932

danger.

common

a

were : among
the most
profitable underwriting" years on

75.

fire..'premiums /com¬
prised 74% of total premiums, but
only 53.5% in 1946. It is also of
interest that in 1946 extended, cov¬
erage represented $153,000,000 of
the $181,000,000 of "all others,"
whereas there was no such line
reported in 1932. The year 1943
is the.first year in which extended
coverage is shown by Best.
.In

equivalent for the tie. that
them together when they

have

the

the

bound

rificed

in

eyes:

our

and

no

tragedy developing be¬
two great nations
peace of the world

seen

which

;.How, then, do we go/about
avoiding war, yet assuring our¬
selves that justice will not be sac¬

Vehicle Marine

Fire

501

677

have

American

yet, peace would not be
The peace must carry

of progress.

In the last two years, we

chance.

faced

<

,

Peace

•

>

security and the national
l-/
.
;y /

At the moment, we would be
deluding ourselves were we to say
that the present world drift, if it
continues, holds that "reasonable

an

defense

worthwhile

Motor

NetPrem.

"

both our

welfare.

interceptor,
but
peace.
Peace,
and peace alone, provides the only

or

moment—but

the

at

something that gives us at least
a reasonable chance of promoting

on

super-radar

new

1946,. volume,

143%

available

we

"will

out

come

in

period just ahead.

In saying that the progressive

crumbling of the,

during the
largely pre¬
ex¬ dictable, we are not attempting to
a 1 retrospective
wisdom
un¬ invoke
last

after

two

the

years

event.

peace

was

We

derwriting exhibit, investment ex¬
hibit, and movement of surplus

at the end of the war with

for the current year.

faced

historical

Each report
Closes with a five-year compara¬
tive financial and operating ex¬

hibit.

the

.

In

:/

•

closing, it seems worthwhile
quote the following paragraph

were
a

basic

challenge^ challenge
echoing all through
history., Where that challenge was
that has been

people were able to enjoy
blessings of security. Where
the challenge was ignored, nations
met,
the

companies are presented to
and occasionallv civilizations had
quite uniform manner. First, is from the Preface, signed by Alfred
to
pay
the ultimate penalty—•
presented the balance sheet state- M. Best:
death or decay. The challenge is
ment of the current, year .cpm*
""This'publication, our 48th con¬
not complicated, though it is far
pared
with
the
previous year. secutive annual edition, supplies
from easy to meet. It is this: es¬
There then follows: a short his4 unbiased
and
authoritative data
tablishing the rules of the game
tory of the company, including all covering the financial responsibil¬ for
nations, with adequate ma¬
capital changes; description and ity, reliability and characteristics
chinery to see that they are en¬
discussion of management, includ-i of companies transacting fire and
forced. With high hope we took
ing
Best's policyholder's rating kindred- lines - of insurance. The
the lead in formulating the U. N/
and financial rating; discussion of reports presented herein upr»n the
charter
in
San
Francisco.
We
general underwriting policy; the respective' stock, mutual, Lloyds
hoped then that we had set up an
company's
or
group's achieve-* and reciprocal insurance institu¬
organization which could succeed
ments and position; the company's tions are necessarily based upon
in maintaining the peace of the
underwriting record over a oeriod sworn annual statements (accu¬
world.
It is true that the veto
of years, with a ten-year statistical rate analysis
of which requires
provision was discussed with some
exhibit; investment policy and in¬ special knowledge and training),
pessimism by the far-.seeing—but
vestment
holdings;
a
five-year and 'indicate the financial posi¬
all hope of limiting its use by the
record
of earnings, taxes, divi¬
tions, operating results and gen¬ gregt powers was put aside by
dends,- etc., on a per share basis}
eral standing of the institutions what seemed to be a most persuaa history of the price range of the
stock over a period of years; divi- analyzed."
(Continued on page 30)
in

-

DEPENDABLE MARKETS

state

through which he operates. What
we must seek is not sure-fire so¬
lutions—for there may be hone

magic

several

.

feet

genious

,

of

1-1248-49

A, Glbbs, Manager Trading Dept.)

Exercises

University, New York
City, July 27, 1947. •
•
"\

;\V

of INDIA, LIMITED
Head

justice.

by Sen. McMahon

Commencement

NATIONAL BANK

19 NEW YORK CITY

with

of Fordham

1946—

Quarter 1947

peace

They are reasonable and they are
mature, and they understand the
nature of war in general and an

t

2nd

Bell

seeking

1932_„

EARNINGS COMPARISON

(L.

98.7 "

7

,

fTo written premiums,
before Federal income tax.
s

earned- premiums.

given the present imperof man and the insti¬

answers,

fore

;i

.

'

that blessed eventuality to occur within the required
time, we would do well to settle
for something less than absolute

attack—or worse—is not some in¬

stifling, parched, ster¬

Had

atomic

out of straws.

by it¬

be totalitarian and anti-

can

human.

95.1

94.4
94.4
95.6
$98.7
" / 94.4
' : 98.6
' * 99.6
'

.

; 58.2

;

.

.

,

:47.6,
•
44.6
42.3
$39.7
.' 42.3
41.3
'
41.5 "
i
40.5
.

'

59.0

1,043,835,000

1946--—

120

.

.

1

.

46.7 "

'

93.3
92.3

,

.46.4
*
48.4

,

,

102.5%
91.9
91.0
88.3

-

47.5

,

4

1943^1-V
1944^_^

48.7%
47.9 :
.47.3
47.9

45.8
.

Ratio

Ratio

53.8%
44.0
43.7
/
40.4

■!

cept the regeneration of the heart
of man and much as we can wish
and pray for

^

are

Combined

f Expense

Ratio

Written

1932__

*To

*Loss

Net Premiums

*

over

jj,

RETURNS—STOCK COMPANIES

.

economic strength under capitalism.; Points out in aiding Europe we are
with o; without aid, Russia may benefit, and to escape this, proposes U. S.
their security inventories and needs.•«' Holds U. S. should act without Russia.

enced

OPERATING

v"

*

peace

the war, the world today would be
that has
be
valued. - Peace
has meaning
No only if-there is also the atmos¬
by all j^ock fire insurance at peace under the iron heel.
ties. This |s followed4 $>y" a Com¬
companies -diu^ng the past
15 pne woiiid want, peace at that phere in ^fhicH free men can
plete alphabetical index to the
breathe ahif grovv-^in which it is
years
has been compiled from price,
g; ; / '
• V ,.
.
941 reports included in the vol-*. Best's volume and - is presented
The American jteople today afe possible fo create, ideals and at¬
below:
ume.
not merely seeking peace.
; ;
•
They tempt to achieve%hem; in which
business

"convention" valuations of sepuri-?

^

" ;

»

,

our

invite nations to draw up

on

foreign

.

with justice, points out dan-/
Says we (cannot afford luxury of drifting, and urges we take inventory of re¬

,

American stock companies, United States branches of
companies. American mutual .companies, .reciprocal
or inter-insurance associations, and individual underwriting
(Lloyds)
organizations. In all, the volume contains reports on 9.41 insurance
organizations which transact fire/^
——
—
—
marine or allied classes of insurIn the rear of the volume, folance
in the
United States and lowing the main report section, is
Canada. It contains no reports on : the
Canadian Company section,
life or casualty and surety com¬ which presents a
statistical ex¬
reports

-

[ U. S. Senator from Connecticut

horns of dilemma, since

on

This 1,000-page volume contains

just been published.

has

Marine"

asserting

of rift with Russia.

ger

sources
•

Thursday, July 31, 1947

-

j

THE COMMERCIAL & FINANCIAL
CHRONICLE

(431)
mmi
p«i?l»
f»

•*•

^
W

(>$»H<

\9

«t •

*

Kg

V'-

H,

.

*

,V/,j} ':v

'■.«

■>.

v

'/

h'y#'r

>*•

'

^

'•

••Jv<.*;>«.wjC, ."^+:'J

v

^

*>vfc4'c/f»JA,<._•_.%>A:.

1

+

•?

«"'v^

i
.

X«- '^/ Ss'orf!

M,1

>

; IX
jr

„>j,

'i

v

' J -

■

,

V* .1

,:

/

iiiSlSi
k<&~ - '
'

Pili#
Wr?»v
d^gfi

V

«

-

^■•'

•

"'

&$$lis«

'

'& 4 **'

>

s

.•

.

H

.3

«fe| W^4>;

.^Wifii'fc.

We/ in General Foods; believe that-we have

responsibilities—and they're
dollars and cents:
To provide

v...

.

\

more
.

than just

/v

v^1(...

3

major

a matter

of

day there

•

.

To

jobs for peopled • for men and women

who believe in work, and who want

af

chance to

#

and salaries than

wages

To

ever

before.)

in 1946 at

V

'

provide profits for people #•• as

own

less than 50 shares of stock

higher

a

men

good

products at fair prices for all the people.
more

American families used

in

our

more

General Foods prod¬

history.)

average

That's how

just reward
and

we see our

major responsibilities. And

we

well, and wisely.

women

#

who invest their

savings in

(General Foods has paid 103




our

consecutive

per

apiece.)

serve

ucts than in any year

■•■■.!■•.•

for the confidence and thrift of the

67,000 stockholder-owners of General
Foods, 78

the people. To provide
jobs and prof¬
its, General Foods must first of all provide

(In 1946,

(More people worked at General Foods

are

cent of whom

productiveness.

quarterly dividends. To^

GENERAL
250 PARK AVE.

•

FOODS

NEW YORK 17,

N. Y.

will

11

12

That

market.

stock

185, in a rising
was Oct. 26,

around

sold

last

Thursday, July 31, 1947

CHRONICLE

THE COMMERCIAL & FINANCIAL

(432)

1945, when the average stood at
185.39.
Then, the yield of 3.63%
was
exactly
1% less than the
current
4.63%.
Meantime,
the
return from high-grade bonds, as

Co., So. Carolina
Electric & Gas, Texas Pacific Coal
& Oil, Baltimore & Ohio Co., and
Monsanto
Chemical
Co.
pfds.
Holdings in the following com¬
panies

reduced:

were

'

•

'

.

.

First Half Sales of Mutual Funds Shares

stocks are now

of mutual funds as
compared with a year ago resembled the branches of a Christmas
tree on New Year's Day—some pointed up, but more were down.

a

ity

as

activ-

investment

measured by the volume of

^trading on the "Big Board" their
over-all

showing

creditable
,

Funds

of

in many

'.funds

were

the

"balanced"

type,

did better than a
Second
grade bond
also in demand. One

recent

in

that

reports

sponsor

bined

preferred stock
equaled com¬

nearly

sales

funds.

On

nine

its

of

other

the

stock

mon

cases,

ago.

year

highly

a

was

one.

have

fund

stock industry groups

market

month of June.
The

there

by

a

sales record
mid-western

AUTOMOBILE
SHARES

i.e.,
pared
same

of

percentage
while

$95,000,000

as

stock funds showed

hand,
request

on

funds

net

of

showed

an

23

investment dealer or

Distributors Group,

Incorporated

63 Wall Street, New York

5, N. Y.

as

of

upon

request from

investment dealer,

from

or

Fundamental Investors, Inc. re¬

ports

000,000
Shares

uninvested.

000

1, reported total assets
$20,856,000
divided
roughly
follows:

cash

and

as

governments

Securities

Corporation

has

&

character

already

those

as

portfolio.

held in the

its

up

additional

stocks of the same gen¬

common

eral

of

purchase

the

by

Research

dressed

Since the March

quarter, there have been a num¬
ber of changes in the portfolio,
and the invested position has been
increased
from 79.4%
to 84.0%

of

other, bonds and preferred
20%; common stocks 56%.

National

or

up

over

months of 1947.

The George Putnam Fund as of

July

on June 30, of
approximately $1,the year-end figure.
outstanding increased 171,—
11% during the first six

assets

net

$22,535,000

bonds,

stocks, 54.2%
while 1.6% was

stocks,

the human equa¬

Whitehall Fund,
to Seligman's

of

to

$352,600

NSTA Notes

on

The company's portfolio

shows

1947

30,

June

that

in bonds,1" 24.91% in pre¬
stocks,
and
44.32%
in
common stocks.
The fundamental

22.93%
ferred

of 2%.

policy of Whitehall Fund, Inc.
to maintain a balanced fund.

been

only

two

new

of our industry.

Convention.

Boston

The

Trust

He had planned to be with us at the
of Akin, Tegler and Hecht has

triangle

God Bless You Tom!

parted.

•

With
weeks

to

,

:l

.

*

*

*

quarter,

During
the
second
Massachusetts Investors

organization yesterday when we

our

upon

passing of Tommy Akin. He was President
of the NSTA in 1940 and many of us knew him as an outstanding

is representative

MIT Portfolio Changes:

In most cases,

fell

sadness

Great

learned of the untimely

advertising approximately $14,000, we only have two
this amount considerably.
.
; It has been most

our

increase

common

.

gratifying to have reports on the work now being done by Viceportfolio: Aluminium
Chairman Jack Hawley of New Orleans, Don Summerell of Los
Than Bonds
Ltd. and United Fruit Co. Addi¬
shares
in
the
following Angeles, Burt Horning of St. Louis and many of the affiliate repre¬
Distributors Group in its "In¬ tional
sentatives (Presidents) who are supporting our advertising program
vestment News" quotes the fol¬ stocks were purchased: American
lowing interesting
paragraph Research & Development, Amer¬ with eager intensity in spite of the fact our general business is at a
written by H. J. Nelson of "Bar¬ ican Tobacco Common "B," Cleve¬ much lower ebb than we experienced last year.
ron's": "Significance of the up¬ land Elec. 111. Co., Cons. Natural
Your Chairman is ready at all times to receive contracts by
ward
march of corporate
divi¬ Gas Co., duPont (E. I.) de Ne¬
Western Union or Telewriter collect in order that no one be over¬
dends in the face of all of the mours,
Kroger Company, Midwidely-stressed uncertainties can Continent Petroleum Co., Mon¬ looked in this year's Post Convention NSTA Edition of the "Com¬
no
r
' ■
longer be disregarded.
Com¬ santo Chemical Co., Pacific Gas & mercial & Financial Chronicle."
Electric
HAROLD B. SMITH, Chairman,
CoV Remington Rand,
,
pare the relative yield appeal of
NSTA Advertising Committee.
bonds and stocks when the Dow- Inc., Sears, Roebuck & Co., and
Stocks Yielding

your

common

of risk is of

of net assets were in cash
and U. S. Government securities,

added

Prospectus

other

share

7.84%

sajes of the new-funds were dis¬
appointing to Their sponsors.

TRUST FUNDS

in

addition

amounted

June 30.

period under review was also
notable for the launching
of a
record
number \ of
new
mutual

funds of all tyriqs.

Non-ag¬

8.2%

oneself against
tion of error."

in¬

was

or

one

growth of aviation.

diversification

Wide

in preferred

stocks

select

to

paramount importance to protect

Government

uS.

future

employment rose 310,high of 49.6 million."

assets

latest

group

a

balanced

increase

old.

in

24.6%

24%;

hazardous

to new

Net

The
from your

of

million

the

decrease of 28V2%,
and speciality funds,

sales

the

ago,

years

Seligman's Baby Reports

com¬

largely industry groups, showed a
decrease of 44%.
On the other

/Securities.

a prospectus

bond

bonds,

000

with $132,000,000 for the
period last year.
Net sales

common

U.

ricultural

$210,000,000 for the
period last year. Net sales,
deducting
repurchases,
to

of the Fund

at

is

in the

Balanced

1947, 11.4%

girls 14 to 19 years

with

amounted

Group Securities, inc.

open-end

the first half of 1947
amounted to $135,900,000 as com¬
same

60,000,000

be

that
jobs

the gain repre¬
sented Summer jobs for boys and

funds during

pared

of

80

Howard

&

vested

1.5

of

was

industry' 30

will probably be many cas¬

ualties among existing companies.

reported net assets on June
30, of $28,240,000 as compared
with $25,816,000 at the year end.
The report shows that on June 30,

time he made
questionable
if
even
he himself believed it.
However, according to the Census
Bureau report as noted by Selec¬
ted
Investments
Company
of
Chicago in "These Things Seemed
Important"
"60.055,000 civilians
were emplyoed in June, up 1,730,000 over prior high in May. About

business.
sales

would

late

the

of

Roosevelt

the statement it was

which has proved that
aggressive "Fuller Brush" methods
can
bring results in the mutual
Gross

prediction

although,

sold poorly,

sponsor

fund

there

two stocks in an attempt to

available after the war was over,

com¬

common

•

outstanding
scored

was

One

large, despite the rising
during late May and the

and

by

mobile

It

Eaton

Was Right!

D. R.

President

other

hand,

and

funds

Co.,

Fund

F.

weeks sales of its

Mfg.

Notes:

1945."

Jlowever, in comparison with the<^
in

prime bonds, compared with
1% differential in the Fall of

Joy

than

During the first half of 1947, sales indices

contraction

that
common
yielding 2% more

result

the

with

Inc.,

an

no longer in its infancy, it is gen¬
erally considered our No. 1 growth
industry. Aviation is still young,
and, as in the.' case of the auto¬

Newport News S. D. D. Co., Pen¬
ney (J. C.) Co. and Chicago, Mil¬
waukee, St. Paul pfd.

'Barron's index, has
unchanged at
2.63%,

reproducing

attractive photograph of the earth.
It concludes:
"While aviation is

Gimbel

Brothers,

remained

By HENRY HUNT
'

dark blue ink and

Oil

measured by
!

"National Notes" this week using

Complete eliminations included
Barnsdall

2% More

stocks to its

-

,

NATIONAL

RESEARCH

SECURITIES

&

CORPORATION

Jones

Industrial

share

Standard

average

Oil Co.

(Ohio).

Collin, Norton & Co.,
30

120 BROADWAY. NEW YORK 5, N. Y.
A

A

•

••

-V

•»

,V

,

,

/

SiSftSgSS■■■■■■'• A '

Dominican

Union Common

ff

Stock Fund

Keystone

Dominican
on

July

lar

bonds

of

issues—both

the

an¬

that it will
dol¬

1922

stamped

fund

ing

Republic
28

and

New York

—

Chicago

.

—

and

un¬

u

SHARES OF CAPITAL

1934.

this

rate

turities

extended

Customs

of

Investors Inc.

the

Of

sued,

COMMON STOCKS

from

1942

and

there

time

of

ther

fund
Prospectus from

Receivership

reinstated.

was

$20,000,000

$16,292,000,

(Series S 1-S2-S3-S4)

were

the

at

adjustment
were

through
to

fur¬

sinking

$9,999,500,

be redeemed."

to

Company

of Boston

.

.

Congress iStreet

Massachusetts




.

outstanding

1934

operations

.

is¬

and these

reduced

..

originally

which is the face amount of bonds

local investment dealer or

Boston 9,

interest

of

ly; and the General

the

50

recommended

1940, to 1961 and 1969 respective¬

(Series K.1-K.2)

TkeK eystone

Council

The

plan

original con¬
was main¬
tained;
sinking fund payments
were
adjusted to cover the ma¬

(Series B1-B2-B3-B4)

your

un¬

Under the Plan the

■■

Fundamental

PREFERRED STOCKS

Government

to the favorable con¬
of
the
bondholders.
sideration

STOCK OF

BONDS

sus¬

Inc., in 1934 which resulted in the
Readjustment Plan of Aug. 17,

of the current
In making this known the

Oct. 1 respectively

tract

IN

were

negotiations with Foreign
Bondholders
Protective Council,

INVESTMENT FUNDS
investing their capital

payments

Dominican

The

Los Angeles

Certiftcate.ij of Participation in

has

dertook

1926

stamped—at 101% on Sept. 1 and

INCORPORATED

Republic

pended in October, 1931 with par¬
tial payments in 1932 and 1933.

year.

Funds

Dominican

always paid in full the 5^% in¬
terest on these dollar issues. Sink¬

Redemption

The

Protective

in part:

said

"The

nounced

Lord, Abbett & Co.

Y.

Bondholders

Council

redeem all of its outstanding

Custodian

Street,

Foreign

Republic

Calls Dollar Bonds
For

%

Prospectus upon request

Pine

New York 5, N.
A

Prospectus
your

may

be obtained from

local investment dealer,

or

-

HUGHW. LONG A CO.

THE

PARKER

CORPORATION

!NCO»»ORAHO

46 WAIL

ONE COURT STREET. BOSTON 8, MASS.

With Herrick, Waddell

Prospectus from your Investment Dealer or

"

lOS

-

Special

.1

to The Financial Chronicle

BROOKSVILLE, FLA.—Donald
W.

Fatic

has

joined the staff of

STREET. NEW YORK S. N.Y.

luoiiil

CHICAGO

Herrick,

Waddell

&

Co.,

Liberty Street, New York City.

55

Volume 166

Number 4616

THE

COMMERCIAL

& FINANCIAL CHRONICLE

President's Review of 1947 Economic
Adjustments
Mid-Year
Report describes
Text of

Economic

of price and

process

ness

financing; and recommended fiscal

v/age

adjustments;

extent of busi¬

anticipated

(433)

decline

nary demand has

in

of

extraordi¬

already occurred

toward general

ence

13

business re¬

cession.

number of

a

commodities, par¬
It was also emphasized in the
ticularly in the consumer-goods
January report that in many other
Examples are some items of

field.

measures.

women's

Supplementing the

apparel,

and

of

men's

cases, even when there is

no

pros¬

pect of imminent decline in der
"Forward and Summary" of the President's Mid-Year
Economic furnishings, small radios, liquor,
Report to Congress, printed on
mand, price restraint will be ;«of
and rubber tires.
page 4 of last week's "Chronicle," there is
Many more ot
given below the these cases will
long-run advantage to the firrris
full text of Section
appear, one after and of
V, furnishing details of the economic adjustments that have
immediate benefit to the
in the
■ 'J
occurred
first

half
and

of

i

turers.

outlining a

future
n

economic

demand

Dairy

production:—
aid

appraising

in

chart¬

a

future

course,

of

President Truman

ad¬

occurred

thus

far

in

1947

will be examined.
The Process of

The

the

ex¬

into

manufacturers'

prices at
Some suppliers

resistance to

the

other

end.

aredjiowever,

ginning to furnish

be¬

larger quanti¬

ties of goods in
lower-price lines

Price

Adjustment

startling rise in prices be¬

tween

fats,

are

termination

of

price

control and the end of 1946

was

a

major concern of the Economic
Report in January. Price control
having been abandoned, I urged

in

Although prices
the

Price

clothing, furniture,

and

some

appliances. Substantial reductions
in
prices require
trimming of
margins all along the line of
pro¬

duction and distribution.

second

leveled

quarter,

the

in

off

present

case,
smooth the

as

it

adjustment

in

emerges,
can
to a sound

progress

and

vigorous peacetime economy.
price situation contains divergent As
backlogs of demand are worked

elements, some of which
ticipated and others not.

were an¬

For

commodities there has been
cline in market demand. In

others demand remains
in

lower

justments that
have

crude rubber

many

the

economic

relations.
and

retailers and wholesalers
to re¬
spond to consumer resistance with
substantial price reductions ran

some

details

supply
oils

Voluntary price adjustments by
manufacturers
did
not
become
widespread. The attempt of

correctly
in

ing

and

products,

amples.

our

and

the decline in wholesale

leather, and

situa¬

present
tion

clear, however, that

quickly to short-term changes in

high

other.

each

is

prices after March came in those
commodities whose prices react

and fiscal pol¬
icies "for sus¬

To

It

much of

course

tained

the

<$>

1947

a

number

of

cases,

some
a

de¬

many

high and
especially

primary markets, there is a renewed

off,

as shortages are overcome by
increased production and as
de¬
mand is less
supported

by the use
and credit, sellers'
begin to fade. Such ad¬
justments then become imperative.
of

liquid assets

markets

To avoid a price
collapse and the
upward pressure on prices. These demoralization of
markets, it is
elements present important prob¬
necessary
to
make
substantial
lems of orderly adjustment which price reductions
before
market
will be briefly reviewed.
forces take control. As competition
At the time of the January Eco¬
reappears, sellers who overstay
nomic Report, certain extraordi¬ the
market are likely both to suf¬
nary and temporary elements of fer serious
inventory losses and
demand were expected to recede to
create a worsening economic
substantially in the early months
situation through curtailed
pro¬
of the year.
Therefore, prompt
duction. If price adjustments are
downward

price adjustments

were

not promptly made there will be

recommended to sustain the level
of
business

activity,

construction, and
chasing

power

in

residential

danger of

consumer

pur¬

of

general.

This

would

a

a

simultaneous collapse

number

have

of
a

markets, which

cumulative

whole economy. This is true where

profit margins are more than ade¬
quate to maintain the financial
health of the
enterprise, to pro¬
vide reasonable returns to inves¬
tors and management, and to ob¬
tain funds for needed
expansioh
and

modernization. Proper price
adjustments
in
these
situations
will

ordinarily benefit the firm by
building good will and stimulating
future market expansion.
They
will benefit the
economy immedi¬

ately by increasing the real pur¬
chasing power of current incomes,
thus reducing the resort to use of

savings

and

credit.

genf

eral economic
go

advantage, to forQ-

that temporary gain.
There

ample

(Continued

thsjt

realize

that

on page

or
temptation and to
voluntary price reductions

wherever possible.

During the first quarter of this
the average of wholesale
prices rose another 7.4%, with in¬
year,

creases

in

The Consumer Price In¬

all

major

commodity

dex held stable until
of

March, then
2%, chiefly as a result

about

rose

price

increases

in

farm

and

food products. Late in March and
again in April, it was found nec¬
essary again to call attention to
the dangerous price situation.

During
this
in

the

second

the

year

upward

prices appeared

The

out

quarter

of

movement

be

halted.

wholesale

of

average

flattened

to

at

a

prices
slightly

level

below the peak reached at the end
of the first quarter.. The
average
of all commodity groups other than
farm and food products showed
very little

change. Small increases

in some groups were, offset
by de¬
clines in others. In April the aver¬
age of

from

farm prices fell somewhat
its

March

peak,

but

then

crept upward. The trend of food
prices in general followed that of
iarm

prices. Corn and other feed
grains again began rising substan¬
tially during the closing weeks of

June

as

result

a

of

unfavorable

weather

during and immediately
after the planting season. In
April
and May the averages of all major
in

groups

the

Consumers'

Price

Index—food; clothing; rent; fuel,
electricity and ice; and house fur¬
nishings—showed
little
change.
In

June

food

prices

advanced

again.
The

leveling off of prices re¬
an
easing of some of the

flected

inflationary factors in the
quarter.

In

second

some

commodities,
markets began to change
buyers' markets as backlog de¬

sellers'
to

mands

was

were

worked off and short¬

began

ages

to disappear.
There
increase in consumer re¬

an

sistance to high retail prices and
resistance to high con¬
struction costs.
The
substantial
general

of

excess

ceipts
also
4

an

The

Federal

over

cash

re¬

payments

cash

was

anti-inflationary influence.
course

of prices in the

sec¬

ond quarter
likewise reflected the

conscious intention of
many sellers
to hold
prices below what
the

traffic would bear or to reduce
prices promptly on the
appearance
or

even

the clear
prospect of in¬
to a bsorb in¬

sufficient •;demand

DURING -THE/ 19TR YEAR of Generak Mills^utotak

creasing supplies at prevailing
prices.;; Many retailers, and wholes

V.gales

salers

^reduced -their
margins,
which* in
.niahy ceases" had been

greatly enlarged* during < the*

war;

They and a. number of their, or¬
ganisations endeavored ' to, secure
price

reductions

from manufac¬




i

.

'■■■:

were

$370;932,427^compared with $298jZ9t^6&;

fortheprecedingyear..Earningsreachedanew.high>
amounting to- $.9,236,214,:

as

1-v

$5,933^986, including

Wvmoastock; Dividends:
j

^

$4,-253*717_May

we

an extra

dividend

on

the

coma

during the* preceding

year were

send'you

our

against $7,146,107 for; vviratedvannuaLrepoi^ Write

a copy

to General

of

illus-

Mills, Inc.,

i

evidence

businessmen

many

influ¬

is

pressures

groups.

situation

permit higher prices to be
it is frequently wis;e
business strategy, as well as a

obtained,

businessmen to resist inflationary
make

Moreover,

where the market

even

would

v

24)

j

14

THE COMMERCIAL' & FINANCIAL CHRONICLE

(434)

The Outlook for

1947-

Thursday, July 31,

Railway Earning Power

By VINCENT C. SMITH

Analyst, Winslow Douglas & McEvoy

Analyst holds future volume of traffic is vulnerable and far
'

failure of Congress to pass the
Reed Reorganization Bill in the recent session means that in all like¬
lihood such legislation has been permanently killed.
The Reed Bill
was designed to return a number of the major railroads now in bank¬
ruptcy to the old stockholders for formulation of a voluntary plan of
readjustment.
The legislation would have allowed these roads to
utilize

casn

excess

tnei\<§>

in

now

contract interest rates retroactive-

| be fully consummated before the

J.y to the date of the original pe¬
tition in bankruptcy.
It

these

was

the

the

of

tures

They

specific fea¬

that had

caused

next

session

were

ious threat to all credit, not only
that
of
the
railroads.
It
was

)

extremely dangerous to
c ;tablish a precedent Which would
.allow a company to discontinue
as

paying interest

its bonds and

on

thus saved to
buy in the bonds at the wide dis¬
count that

the

default would

J urally bring about.
argument with

i aat

to

back

Com-:

the

these

roads

There

na-

can

be

the contention

now

have

large

legislation. The Commis¬

any new

sion

have

will

the

reexamine

to

light of 'present fi¬
nances, earnings of recent pros¬
perous years, and improved physi¬
cal condition of the plant.
the

in

plan

i hen use the money

no

it

sends

the plan

rejects

Court

Supreme

the

If

Congress.

of

analysts

of

•viewed

Bill

and

be passed in the

could

Reed

apprehension
in
the1 mission, the opponents Of the plan
have
accomplished
their
and investors; will
avowed airhs without benefit of
seen as carrying a se-

most

minds

two

bill

mates effects

affected

The other major group

by the Reed Bill is the Missouri
Pacific and its subsidiaries.
This
will

and

courts

creditors this

be

the

by

voted

by

on

It is gen¬

summer.

ities

provision
in

cuts

contract

could hardly
l

ogic

or

for

retroactive

interest

find

any

in ethics.

rates

support in

Proponents

of

this scheme point to the sharp de¬

cline in money rates in the years

since

intervening

of

most

the

I .ankruptcies were instituted.

They also point to the ability of
many
solvent
roads in
recent
years to refund their bonds at 3%,
oi less.
What they do not stress
} cthat any

are
\

credit

standing.
There
roads that were able to

many

reather

the

economic

the 1930s but which
to refund
us

high

bonds

as

rejected by substantial major¬
of virtually
all classes of
creditors. If so, it is hardly likely

increases
present

r

i

are

5%.

carrying

Federal in¬
t

come

the

a x e

s,

the

coming

wage

increase,

)ation, there is another

-income at this

roads

The

very

good
may

annu¬

be revived.
The number
of railroads to which it would be

never

applicable is gradually shrinking.
St.

aiready

Louis

been

Southwestern

discharged

has

finance

from

in bankruptcy which is
really sol¬

vent,

as

is claimed by supporters

Bill, could follow the

mated well before the end of this

come

•

have

result in net income of $250

mil¬

rates.
made

been

6%

.8%% over-all.
emphasized that these
estimates are made on the basis
of tho boom conditions now pre¬
about

It must be

vailing. A recession of only minor
significance would result in defi¬

Some adjustment
for

roads because of the
percentage of gross now
carried down to net.

increased

the

cits for many

cost of materials.

smaller

(2) The annual rate of earnings

lions, the net being affected only

Possible Wage and Rate Changes (in Dollars per Common

Estimated Railway Earnings Based on
Railroad—

next

new

1

Baltimore & Ohio

Iialf

Year

Year Wage &

Wage Rise

Wage Rise

Rale Rise

2

Frice

Yield

15.00

12.50

10.00

16.50

6.00

90

6.6

8.00

5.50

3.00

7.50

4.GO

56

7.1

4.00

1.50

*1.50

6.50

14

•'VV-- *;

3.75

4.50

3.50

48

7.2

*4.00

5.50

1.00

21

4.7

—

—

Chesapeak & Ohio

4.50

_.

Chicago & North West
Chicago Milwaukee St. Paul
Chicago Rock Island & Pacific.

4.00

5.53

.50

1.50,

'

*.25

Commission,
together with the Blue Sky Laws
of the states was making it next
to impossible for anyone to fi¬
nance
new
mines in the United

1.00 v

11

9.0'

6.00

3.00

46

6.5

14

—

Kansas City Southern
Lehigh Valley RR._

12.50

4.00

Chicago,

Rock

Island

&

been

confirmed by the

this

confirmation

court and

is

being ap¬
pealed to the Supreme Court. If

1.25

*2.50

7 00

5.75

4.75

3.25

-

Missouri Kansas Texas...

...

2.00

Special

to

The

Financial

Northern Pacific

Western...

.

5.25

1.75

San Francisco........

Teletype NY

1-1C33




16

3.75

—

5.00

3.25

60

5.4

5.75

1.00

21

4.7

1.00

21

4.7

*1.00

21

4.7

1

2.50

*1.75

,

4.25

20

4.50

3.75

4.75

1.50

7.5

47

3.52

4.25

4.50

RR.- -

r

■

5.50

2.25

*.50

__

.

2.00

;

—

4.25

arrears

9

—

17

4.00

2.25

.25

System.
Southern Railway......
Texas & Pacific Railway........

10.25

8.25

•6.00

9.75

6.50

4.75

6.50

4.CO

2.50

7.00

4.00

49

Union Pacific RR

19.00

17.00

14.50

20.00

6.00

143

Seaboard Air Line
Southern

Pacific

'—

—

Western Pacific RR...

4.00

46

8.7

3.00

40

7.5

3.25

3.00

4.00

2.50

40

6.2

4.00

7.50

3.00

33

9.0

'

^Deficit.

obligations.
2 After merger with Pere
consummation of present reorganization plan.
4All owing $6.00 annual C. B. & Q.
arrears

8.1,

5.00

.

tive

.

4.2

7.00

...

NOTES—1 Net before large reserve fund

merger

—

10.25
10.00

1

3.75

Virginian Railway

with Alton RR.
r> Including the Louisiana & Arkansas.
7Per
$106.75.
8 Per share on the preferred stock, arrears $84.00. 9

Marquette.'

3After
5 After

dividend.

share on the preferred stock,
After 4-1 split-up to be effec¬

about Sept. 3, 1947.

ida

Rockwell

the

staff of Lamson

141

W. Jackson

has been

Bros.

bers

of

&

to

Co.,

mem¬

Stock Exchanges.

the

New

York

and

Haberkorn With
to The

CHICAGO,

Financial

ILL.

Chi¬

ST.

The

Chronicle

LOUIS,

MO. —Frank

J.

Co.,

Inc.,

Reedy has been added to the staff
of J. W.

Brady & Co., 411 North

Seventh Street.

on

offered a new issue of
shares of Victor Chemical
Works
3V2%
cumulative
pre¬

July

25,

40,000

second series, at
and accrued div¬
Of the proceeds of this

shares,,

share

financing, estimated at $3,900,000,

approximately

Chronicle)

&

Eberstadt

F.

idends.

Dempsey

—

Financial

large

phosphorus. The cost of
plant will be approximately
$3,850,000, for which the company
already
has* ample
cash
re¬
sources.
The new Florida plant
this

ferred

Joseph A.
Haberkorn has joined the staff of
Dempsey & Co., 135 South La
Salle Street, members of the Chi¬
cago Stock Exchange.

to

a

mental

added

Boulevard,

of

election furnace
plant for the production of .ele¬

used

to

will be

$1,500,000

increase

phosphorus pro¬

at Mt. Pleasant,
presently estimated,
approximately $2,000,000 will be
used for the purchase of a plant
construction

of

a

tergents,

: soaps,

and

industrial

cleansers, plastics, fire

ing,

plant, by Fall of 1948,
company's phosphorus pro¬
duction capacity will be increased

Pleasant
the

approximately 75%

over

viile,

Tenn., will be augmented by
the construction of the new proc¬

and manufacturing plant.
to working capital.
Victor Chemical; Works, organ¬
The company is now complete ized in 1902, is one of the leading
of
phosphorus,
ing a substantial plant expansion •manufacturers
program commenced in 1945. This high-grade phosphoric acid, |ind
essing

and flame-

proofing, water-proof¬

oil refining, textiles, rustproofing, metal treating, plating,
insecticides and many other es¬
sential products.

the

by

the

company's products. Victor chem¬
icals are also used extensively in
the manufacture of synthetic de¬

completion of the Florida plant
and
the
expansion of the Mt.

present rate of production. The
company's processing and manu¬
facturing plants, located at Chi¬
cago Heights, 111. and West Nash-

and

purposes.
The food industry is
the
largest single
user
of the

household

ducing facilities

phosphorus processing and manu¬
facturing plant at a strategic lo¬
cation. The balance will be added

phosphates for food, pharmaceu¬
tical, technical and manufacturing

expected to be in operation by
November
of
this
year.
Upon
is

Tenn. and, as

„

New York 4, N. Y.

—

7

108

5.00

_________

CHICAGO, ILL.—William War¬

ren

(Special

Telephone BOwUn° riroon 9-6400

24

7.00

<

16.50

Reading Company

site

25 Broad Street

—

9.50

20.00

...

Chronicle

With Brady & Co., St. Louis
guaranteed railroad stocks-bonds

27

29.00

24.50

Louis.

With Lamson Bros. & Co.

Special

Special Securities

-

1.50

1.00

5.75

Norfolk

$100 per

Bonds

'

—

13.00
5

*2.00

2.00

9

will risk money

cago

Guaranteed Stocks

—

precarious situation."

a

Pacific.

already

^

»

■

4

to have new
you must make mining at¬
tractive to the prospectors
and
also to the promoter—the key man

v

The Rock Island plan has

_

11.50

|

9.50

11.00
*

.25

New York Chicago & St.

are

—

12

*

3.00

6.50

8

1

10.0

9

.50

includes the construction in Flor¬

large part of the support for

40

4.75
2.00

Louis

4.00

2.00

1.50

9.60

St.

9.00

...

•

5.50

3.00

New York Central

Exchange

'

28

6.50

;

4.C0

Penn sy 1 vania

—

2.75

__

12.00

&

*.

w.i.

4.50

Louisville & Nashville
7

a

10

'•

8.25

1.75

4.50

& Rio Grande

Railroad

Erie

•

Dividend

3.00

5.50

^75

?

9.00

Delaware Lackawanna & West'n

-

4.00

7.00

•

7.75

*1.00

5.75

2.75
_

Delaware & Hudson
J Denver

Share)

After Full-

Present

mining ventures.

"If you

After Full-

Earning Rate

Atchison Topeka & Santa Fe_*__
Atlantic Coast Line____

impossible to

to

After Last-

1

■

with

or roughly half of the pending
requests for
each district and

or# the following
basis:
The present annual rate of
net income, allowing slightly less

has

with a 10%
Pocahontas car¬

4%, and all others

riers with

cal¬

(1)

at regular

would

The Eastern roads

credited

been

rate increase, the

following
been

Illinois Central

that the restrictions of the Securi¬

the Reed Bill centered around the

v

*,(4) The annual rate of earnings
for both wage and

individual

have

effective

of this

after allowing
rate increases.

Income taxes have been calculated

$350 millions which,

millions taxes,

$100

year.
A

earn¬

the wage
affect ; the per

can

Estimates

Gulf Mobile & Ohio___

Senate Pub¬
lic Lands Sub-Committee inquir¬
ing into U. S. natural resources,
Gordon Jones, a Canadian, asserted

who

taxes to

after

measures

to set up a
Sctme steps as those taken
by Cot¬ deal," Mr. Gordon stated, adding:
ton Belt in curing all defaults on "You are in a hopeless situation
publicly held debt. Another road with your present setup, and un¬
less
tnat would have been affected
you
make radical changes
by
tne new legislation is the New there is no hope for new business
or new mines in this country.
In
Maven, and it is expected that this
the event of war it would present
reorganization will be
consum¬
of the Reed

millions to $600

earnings of the

increase is made

an

July 1.
|
(3) The annual rate of earnings
after a full year's wage increase
of 12V2%, which is slightly less
than half the reported demands.
as

culated

$300

5

and

such

millions, net income amounts to
usual
autumn
rise in
about $550 millions. A $500 mil-; than the
lion
or
121/2%
wage
increase' traffic because the roads are al¬
would reduce earnings before in¬ ready operating close to capacity.

1 & r>

bankruptcy without reorganiza¬ States.
tion. Incidentally, any other road mines

Vincent C. Smith

ally before in¬
taxes.. After.taxes of

come

121/2% wage in¬

should approximate
earnings for 1947 if

These figures
the reported

by

in which

manner

table.

Congressional

tells

restrictive

it

only

roads is computed in the

$850

millions

$250

increase's

share

Great Northern Railway..._____

committee

ties

rate

now

are

of

from

The

-

earning at the
rate

income

millions, about the level of
ings that now prevails.

4

Testifying before

anticipating that it

taxes

will

.not fall on net

time.

the

increase in rates

an

net

or 8V2 % rate
increase, fol¬
lowing the wage increase, would
result in raising net after income

im¬

of

a

being effective only during
last six months of the year;

crease

million

full

pact

raise

the basis of

on

about 60% of the amount granted,
due to the income taxes.
A $600

Jones, Canadian mining

promoter,
make

will

high

of the

increase.

wage

Conversely,

Due to

3

coupons

to the extent of about 60%

se-

lems.

years.

Certainly, then,

railway earning power under present traffic conditions reveal that net
likely to be engulfed by wage or price increases so long as moderate rate
granted. A drop of only 5 to 15 % in the volume of traffic, however, would

Reed Bill,

Says SEC Handicaps
New Mines Financing

i

'

prob¬

o u s

an

Gordon

each road.

also,

will

of the

benefit

opportunity for a new
plan based on debt, financial, and
property improvements of recent
have

of stock prices
income. Esti-

many

roads with

Thus op¬

plan

this

of

ponents
without

unable

Aside from the controversy over
tne merits of the proposed legis-

The

Commission

the

to

for review and revision.

of

storms

were

their old capializations.

for

remanded

be

tax incidence on nel

is not confirmed it will

If the plan

itJ can hardly be argued that the
reorganization roads could sup¬
port
low
coupon
refunding on

mason

plan would be confirmed.

that the

kn\| coupon refunding

that has beeit accomplished bythe
railroads has been based on in¬

dividual

erally believed that the plan will

important determinant

more

latter being partially offset by

Estimates of
income is not

be

j nterest for many years.

approved

has been

plan

(.ash balances merely because they
have oeen paying little, if any,
The

on

——

of the Supreme Court upholds the
their bonds in the open market; confirmation it is believed in most
Also, it would sanction cuts in quarters that this plan should also

purchase

the

for

treasuries

f

than either wage or rate increases,

Many railroad analysts feel that

E. W. Nash Dead
Edmund W. Nash,

of

retired New
a

brother

Ogden Nash, the poet,

died in

York Stock broker,

Union
more,
was

and

Memorial Hospital,

Balti¬

at the age of 51. Mr. Nash

formerly

Kendall

&

a

partner in Pyne,

Hollister

Cloud & Isaacs of New

and

Nash,

York.

Volume 166

Free

Number 4616

THE COMMERCIAL & FINANCIAL CHRONICLE

join the picketing strikers. About
time the plant manager ar¬

Speech in Union-Management Relations

that

rived

who, upon sizing up the sit¬
uation, told the workers they had
the right to pass the picket line
if they wanted to. As a matter of
fact, he escorted one girl through

By HIRAM S. HALL*
Director, of Personnel Administration,
Bigelow-Sanford Carpet Company, Inc.

<

,

-

Personnel officer reviews history of "free speech" in

the

line

this

case

did

labor relations and * the * interpretation of the
Wagner Act's restrictions in the "American Tube Bending Case," decided in 1943. Holds restrictions of
Taft-Hartley Act on union contributions in election campaigns still awaits interpretation, but right to
peaceful picketing by unions on strike is not im paired. Holds employers have right to tell employees
they can pass picket lines. Urges a policy of fair play in labor-management relations.

•

(435)

not

since

no

terfere

himself.

The

NLRB

in

stated that the employer
violate the Wagner Act

attempt
with

made to in¬

was

the

employees who
picketing. The plant man¬
had simply told the nonstriking employees of their right.
were

ager

forefathers were completely aware of the
necessity of maintaining the right
speech. The first of the ten original amendments to the Constitution states:
Legally, the essential point here
is that, so long as no action is
"Congress shall make no law respecting an establishment of religion or abridg¬
taken
that
interferes
with
the
ing the freedom of speech or of the press or the right of the people peaceably to
strikers, non-strikers and custo¬
assemble and to petition the government for a redress of
mers may be given any necessary
grievances."
Our

of free

The authors of the Taft-Hartley i>

—

—--—

Act took

cognizance of the right ,'ment whatsoever concerning em- tributions or spending money in
citizen to free speech as Ployee organization or the theory connection with primaries or elec¬
guaranteed in the First Amend¬ of unionism when talking to their tion of candidates for Federal of¬
ment to the Constitution. It pro¬ employees.
fices on the part of unions.
This

of every

,

vides that employers are guaran¬
teed

the

right to express their
opinions to employees on union¬
ization so long as their statements
do not threaten reprisal, indicate
the use of force, or make promises
of benefit. Just prior to the en¬

*

During

tne

to

statements
leaders.

kinds
the

on

This

gitimate

of

part

organizing

actment of this

Most of you

in principle.
However, now that
it is embodied in the law, changes

in Board

personnel cannot result

in changes

uted

of

labor
le¬

technique.

type of handbill that

legislation, the old
following this concept

sub¬

abusive

considered

was

NLRB

was

and

being

were

all

man¬

enlightened

unenlightened,
jected

period

same

both

agements,

familiar with the

are

distrib¬

was

to

employees and the many
mis-statements that were included
in them.

in policy.

Under

these

conditions,

man¬

prevent unions from urging

may

members to support or oppose po¬
litical candidates.
This phase of

the

Act

great
lation.

and

between
after

labor

manage¬

passage

of

this legislation.

Any employee or
company official who has repre¬

the

state of great

a

emotional upheaval.

It

not

was

the employees

can lay the com¬
to charges of Wagner
Act violations by saying
some¬
thing which the NLRB could have

that

pany

assurance

interpreted

until

Oct.

18,

1943,
legal

unionism.

his

own

interfering with the
right'to join a union of
choosing.
as

the

In

Before

Wagner Act

order

to

evaluate

actions

the

of

the

NLRB

in

the

of

its

existence,

we

early

days

must

remember

properly

men

who

were

instrumental

in

any

could

make

disadvantages of

Bending case) to in¬
form his employees of the facts
concerning a coming NLRB elec¬
tion.

The President of this

pany

had

sent

a

letter

and

de¬

speech to the employees,

a

essence

of which

professed

company

that the

was

itself

willing

to abide by the results of the elec¬
tion, did not conceal its preference

for

union

no

whatever, but made

no
intimation of reprisal against
employees who thought otherwise,

and argued that a union would be

against -the interests of employer
employees and that the contin¬

of

part

the

employer an unfair
labor practice and had issued an

membered, furthermore, that the
policy of the gov¬

was

labor relations
ernment

at

that

time

based

was

that collective
bargaining would minimize strikes
and stabilize employee relations
throughout the country.
the premise

upon

"

In

the zeal with
which Collective bargaining was
pushed in those days led to a dan¬
my

opinion,

' distortion

gerous

of ' the

free

speech concept. We all remember
that even the slightest indication
of an .employer's preference or
opinion concerning the employee's
right to organize was considered

'

as

an

unfair

labor

have heard that
supervisor
when

\

a

on

practice.

wrinkled

union

was

I

occasion

one
,

his

a

r nose

.mentioned.

The union interpreted this

as an

antagonistic attitude toward
ganization on the part, of this

or¬

su-

'

pervisor," and
accused
tice.

In

of

an

the company was
unfair labor prac¬

those

days many man¬
agements instructed their supervi¬
sory

personnel to make

no

com-

*

An address by Mr. Hall at the
Seminar
"Operating Under the

Taft-Hartley Act," conducted by
Commerce and Industry Associa-»
tion of New York, Inc., New York
City, July 30, 1947.




order

accordingly oh Sept. 18,
Supreme Court subse¬
quently refused to review the de¬
1942.

The

cision of the Circuit Court.
At the time this decision
handed

tically

down, unions
free to make

ments

they

influence
choice

agent.

A careful

from, making

from

state¬

nance

their

a
collective bargaining
Consequently, the Ameri¬

received

Bending decision
with considerable

was

subscriptions
tising.
The exact

employers. Subse¬
quent decisions of the Board and
courts

that

indicated,

however,

an

employer's
statements
would be evaluated in light of his
labor relations history.

If the

re¬

lationship had been good and the
employer had

not

in

activities,

anti-union

been

engaged
he

used

had

considerable freedom in express¬

ing himself. However, if the rela¬
tionship had been bad, the limita¬
tion upon his right of expression
Was practically complete. In other
Words, the Board Considered the

re¬

the

from

;

the

Taft-Hartley Act.
alties

are

passage

of

courts.

j

Another

which

I

attached to

making

con¬

(

preserved.

Harris & Go. to Be

Formed in New York
Harris
New

&

Co., members of thfV
Exchange, wilt1

York

be formed

Stock
as

of Aug.

15 with of¬

fices at 11 Wall Street, New York

City. Partners of the firm will bo
Joseph J. Harris, Exchange mem¬
ber, general partner, and Gene¬
vieve

A.

and

Dunham

Dunham

Mr.

business

as

A>

Ruth

limited part-'
formerly did

Johnson,
Harris

individual broker.

an

Need of Fair Play

It is my belief that, in order to
maintain and promote good indus¬
trial relations in
any
organiza¬

With Foster & Marshall
Special

to

The Financial

„

Chronicle-.

pertaining to

a

given issue

S.

Bank Bldg.

National

.

aspect
should

of

,t

free

like

to

speech
discuss

briefly at this time is the right of
employees to picket.
It

would

seem

amendment

to

that

the

the

first

Constitution

guaranteed the right of the em¬
ployees to peaceful picketing. Al¬
though picketing has been a tradi¬
tional accompaniment of strikes,
it has in

some

to

sorted

instances been

re¬

by employee groups in

the absence of

times when

a

strike and

some¬

dispute has existed
between the company and its em¬
no

ployees.
Peaceful
means

number

picketing
ordinarily
picketing by
a
limited
of people who make no

effort to do

than to get"their
to employees, cus¬
tomers and the general public by
means of placards. Mass
picketing,
more

COURTESY

message across

on

the

other

by

such

large numbers of
that access to the

ployees

hand,

is

OF THE

NATIONAL GEOGRAPHIC

SOCIETY

picketing
em¬
com¬

Taking moving pictures of human vocal cords

pany's property is dangerous, dif¬
ficult or impossible. Violent pick¬
or

group

action where

threats of force

This Bell

Telephone Laboratories scientist is taking moving j
young woman's vocal cords, to get new ;
knowledge about the voice. Such knowledge is useful in
telephone transmitter design.

used

are

to prevent access to the company's

property

or

Supreme

pictures of the

to interfere with the

conduct of the

company's business.

Court decisions

have

made it* clear time and time

again

He is

that

peaceful picketing is pro¬
by;/the constitutional right
free- speech.
State and local

of

statutes

intended

prohibit

peaceful picketing

been

held

to

restrict

unconstitutional.

atom-bomb

or

8000

Vio¬

Bell

picketing, however, has been
recognized by the Supreme Court
matter which is

a

FastaX
the
a

camera,

same

tests at

pictures

have

lent

as a

using

This camera,

tected

developed by the

kind that

Bikini,

was

Laboratories7*

used to photograph

operate up to

can

the rate of

secondi

Telephone Laboratories learned some interesting things
speech' ftdm high-speed pictures of vocal cords»

about

subject to the

control of the local municipalities
and the States and their courts.

The

Employers Rights in Picketing

warned

re¬

Criminal pen¬

be

can

interpretation
of; this
section, .however, must
await further clarification by the
Board
and
eventually
by
the

-

sulted

of life

from adver¬

or

Although management does not
have the right to interfere; With
strikers'on a picket line, it can in¬
entire
labor
relations
picture
form non strikers that they have a
when
judging ; the
employer's
statements.
This is the keynote right to go through the picket line
if they desire to do so.
For ex¬
to how to handle free speech un¬
ample, a minority uiiion threw a
der the Taft-Hartley Act.
pifcket line' around a plant one
Use of Money in Elections
mdrning before the employees ar¬
rived
for work.
They had not
There. is another
problem
lated to free speech Which has

run,

to. fi¬

ac¬

claim by most

the

funds

from

force

in

long

the periodicals are obtained

the

eting refers to

employees

the

people will ar¬
rive at a sound decision, provided
we have a fair presentation of all
the facts by all the interested par¬
ties.
It is only by adopting thirl
philosophy that a democratic way

for candi¬
publications, pro¬

their

that

prac¬

to

In
our

campaigning

in

state¬

order

action.

majority of

ners.

laws.

an¬

vided

any

in

injunctions related to labor dis¬
putes. Many State and local courts
are
similarly restricted by State

islative
the

concerning political issues

were

of

Tube

can

desired

LaGuardia Act in the issuance of

ing statements concerning the ad¬
visability of certain types of leg¬

U.

restricted

ued

status quo. Previously, the NLRB
had considered this action on the

the

have
Norris-

It

facts

and

prosperity of the employer
depended upon maintaining the

been

an

courts

Federal
restricted
by

employer's right-

to express himself was denied.

be

com¬

and
administering
this
legislation
believed
that
unions required the ultimate pro¬
tection if they were to establish
themselves as an integral part of
our
economy.
It should be re¬

formulating

ex¬

injunction.

created when the

would be just as detrimental if the
union were prohibited from mak¬

It is not believed that unions will

famous Amer¬

now

Tube

the

ployees in the years before the
of the Act had been re¬
quired to sign "yellow dog" con¬
tracts, and incipient unionizing ef¬
forts were subjected to employer
spying and other activities in an
attempt to prevent employee or¬
ganization. Furthermore, the coun¬
try was just emerging from the
most severe depression in its his¬
tory, and management was truly
in the managerial doghouse. The

and

ployer (in the

conditions

passage

he

On this date the Circuit
Court upheld the right of an em¬

1935.

Em¬

that

advantages

livered

the

Which existed prior to

employer had

statements of fact concerning the

ican

Conditions

have

little Chance, if any, to secure

for
analysis and
We are all aware of the
undesirable situations which were

study.

PORTLAND,
OREG. — Luther
Toothman, Jr. has been added to
the
staff of Foster & Marshall,

or

The American Tube
Bending Case
'

worker's

leaders

legis¬

dates

sented management in the eyes of

open

ever

the

picketing involves, a labor
dispute and if the goal of' the
pickets is lawful, the company has

available

are

tion, the fundamental principle of
fair play must be adhered to. Fair
play cannot exist unless all of the

ments

ensued

of

press

of

alysis of the Congressional Record
indicates that the purpose of this
section
was
to
prevent unions
from using the dues contributed
by members for political purposes.

tative elections in

ment

..

Union

is unconstitutional.

union and, as a
consequence, em¬
ployees often voted in represen¬

charges

the

enactment

at

If

effect that this section of the Act

which

almost powerless to

the

in

discussed

pressed themselves publicly to the

agement

was

been

length
the

since

Statements, either written or
oral, have been responsible for
more Wagner Act violations than
any other factor in the dealings

counteract

has

protection in passing through the
strikers'picket line.

15

pending

the

company

strike.

to

job of Bell Laboratories is
develop facilities

the most fundamental matter^

enable two human

and hearing and the molecular

devise and

which

will

beings anywhere in the World tfo
clearly as if
they were face to face —and to
do this economically as well as
efficiently. To this end, Bell Laboratories study everything from

such

as

the mechanism of speech

struetrire of

ber

talk tQ each other as

copper wire arid nib
insulation, to the detailed

design of equipment.
-

The result is better service, aS
lower
uses

cost,

for

everyone

the telephone.

of the im¬

When other

em¬

ployees arrived at work, the" union
officials tried to persuade them to

BELL

TELEPHONE

SYSTEM

wh<^

16

THE COMMERCIAL & FINANCIAL CHRONICLE

(436)

ised

In
to

Industrial Relations, National Association of Manufacturers

careful appraisal of policy by employers in prosecuting unfair labor
negotiation between employer and union, but points
with National Labor Relations Board when the purpose
is to protect basic rights of individual employees.
The proscription by law of unfair labor practices by unions as well as employers and
the establishment of an enlarged and more powerful National Labor Relations Board raises
questions of major significance for both employers and leaders of organized labor.
The

that the

reaction of la

ficials

been
and

has

extreme.

United

no

count

shall,

a

partisan
biased

ad¬

most heartening

ing to do with
the new Board
have

and encouraging

responsibilities of the new labor
If one of the first results of

One

re¬

of

the

troubles

with

law.

the passage

our

of this law is to turn

settle¬

industrial relations and one of the

labor unions back to

of their disputes with their

major reasons for the passage of

of collective

discovered
ment

conceivable circumstance,
organized labor had sought sin¬
cerely to make collective bargain¬
ing work, they might not now be
saddled with the * obligations and
every

developments in many years.

Carroll E. French

the

virtues

of

under

vention of the Labor Board

ized labor,

to have noth¬

If, instead of

votes, unfair labor
invoking the inter¬

charges,

policy extends throughout organ¬
it will be one of the

determination

the breakdown

persistence of organized
exploiting its legal ex¬

strike
and

filing

collective

fide

in

was

bargaining by reason

conceivable pretext.

our

through
bargaining
and
other
peaceful
means,
wherever possible." If this prom¬
ise can be relied upon and this
bona

ministration,
they are an¬
nouncing their

and

between

issues

all

law

emptions and running to the La¬
bor Relatiions Board under every

union and the employers

La¬

bor Board and
a

labor

announced
that
"We
in good faith, seek to re¬

solve

the

of

of

recently

longer
on

Board

new

of collective

the
Steel Workers of America
Executive

The

prompt

Now that they
can

this

the

question

companies

as

should af¬

the processes

bargaining, the prom-

unions, it should be borne in mind
vast

majority of Ameri¬
employers, in their relations
employees, have never

can

with their
favored

resort

agencies

to

government

court action. They have

or

preferred,
with

and

where

their

and

to

reach

the

union

represent¬

Most

to
the

make

em¬

effort

every

to

collective

legisla¬

new

labor

To
To be

mature

$940,000

on

;

union busting weapon. There

a

is

no

is

happening

evidence

'

1955
1956

1.65

1953

2.10

1957

general reluctance

a

invoke the

or

As

Representative Hart¬

2.25

a

bor Board

and, where so disposed,
unions and employers can

both

subject to authorization by the Interstate Commerce Commission,

may be obtained in any State in which this announcement
only such of the undersigned and other dealers as may
lawfully offer these securities in such State.

Offering Circular

know

is

Employers

that this is not the road to

mutual

circulatedfrom

confidence

successful

or

labor-management relationships.

Responsibility

be

reluctant to

tions
CO.

BLAIR &. CO.,

INC.

EQUITABLE SECURITIES CORPORATION

of

the

the sanc¬

invoke

new

law,

they have

definite responsibilities which

very

INCORPORATED

under certain circumstances,
impose upon them the definite

may,

HORNBLOWER & WEEKS

HARRIS, HALL &. COMPANY
PHELPS, FENN &. CO.
GREGORY

OTIS

&

CO.

&

R. W. PRESSPRICH

L. F. ROTHSCHILD &, CO.

&. CO.

WM. E. POLLOCK

SON

& CO., INC.

INCORPORATED

FIRST OF

MICHIGAN

FREEMAN &, COMPANY

CORPORATION

have

inserted

been

for

the

pur¬

of protecting the basic rights
employees. The more
the overall objectives of this law

pose

HAYDEN, MILLER & CO.
THE

KEBBON, McCORMICK &, CO.

THE ILLINOIS COMPANY

MILWAUKEE COMPANY

THE WISCONSIN

of individual

COMPANY -

are

studied, the more I am con¬
it will become clear that;

vinced
WILLIAM

MULLANEY, ROSS &. COMPANY

BLAIR & COMPANY

basically, it is
the

SCHWABACHER & CO.

JULIEN COLLINS & COMPANY

individual

FIRST CLEVELAND CORPORATION

ALFRED O'GARA & CO.

f

INCORPORATED

has

workers .and

,

Five out of the six unfair

.

to

.

City. Definitive Certificates, with dividend -warrants attached, in the denomination of $1,000. registrable as
redeemable prior to maturity. These Certificates are offered when, as and if received by us It is
Cxpeqted that Certificates in temporary or definitive form will be ready for delivery at the office of Halsev Stuart
& Co. Inc.. 35 Wall St., New York 5, N. Y. on or about August 21.1947. The information contained herein has beencarefully compiled from sources considered reliable and, while not guaranteed as to completeness or accuracy we

his

■

-

labor

him
representation,; to

as

of this date.

•

•

<

to

rights

-

collective

40 par value. Not

believe it to be correct

wander about the plant,

loaf,

refuse to work, waste

:
*
„

;;




engage

be

improper motive but must

an

guided by preponderance of evi¬
dence as to the cause of discipline
discharge.

or

taking

every

factor

consideration, there is every

why

reason

employers,

scanning

responsibilities and obliga¬

their

tions under the new law,

should

approach the whole matter of fil¬

cooperation and relations be¬

of

themselves and their em¬

tween

ployees.

the

read by Mr. French at
"Operating Under
Taft-Hartley Act,", conducted

by

the

.

*A paper

the Seminar on

Commerce

Association
New York

of

and

New

Industry

York,

City, July 30, 1947.

Two With

Inc.,
-

job.

bargaining and to

his

Both the union and the em¬

Morfeld, Moss;

Special to The Financial

ST.
per

LOUIS,

Boschert

have become

Chronicle"

MO.—Daniel Cas¬

and Frank Bottini
associated .with Mor¬

feld, Moss; & HartnettK818 Olive
Mr. Boschert was previ¬

Street;

morally, and legally
obligated to see that these rights ously with Friedman, Brokaw &
Samish. * ' v ■.
V■
'
are neither denied nor abridged.
J*
ployer

are

-

♦

time, break

in incivilities
and other disorders and miscon¬
duct." The Board may not "infer"
and

rules

,

specific
purpose,
the protection of em¬
ployees against coercive or arbi¬
trary actions of the unions. They

THOMAS & COMPANY

T° ^.ated August 15, 1947. Par value and semi-annual dividends (February IS and August 15) payable in New
York

the purpose of

certainly justified by the Board's
decisions, that engaging in union
activities carries with it a license

have been designed to assure

July 31, 1947.

out that

pointed

practices have, for their

F. S. YANTIS & CO.
\

Bill of Rights for

designed and passed in their
interests.
\
;;

MASON, MORAN & CO.

SINGER, DEANE & SCRIBNER

a

been

<

THE

The majority report of
Labor
Committee

ing unfair labor, charges with ex¬
obligation to file formal charges. treme caution and restraint, be¬
Careful analysis of the unfair la¬
ing guided in their policy by the
bor practices defined under the
overall objective of bringing about
law for labor organizations
re¬
veals that, for the most part, they and maintaining higher standards

(INCORPORATED)

(INCORPORATED)

House

into

generally

While employers will

HALSEY, STUART & CO. INC.
&

discharge.

Certainly
Employer

A. G. BECKER

endless

in

themselves

embroil

litigation and conflict.
The

of

powers

Labor Board, except un¬

recent speech
in New York, the law provides an
enlarged and more powerful La¬

2.15

Issuance and sale of these Certificates are

law establishes condi¬

this provision was "to put an end
to the belief now widely held and

new

der extreme emergency or provo¬

2.30

1954

new

and

practices

2.20%

1950

a

If this is true, I

peace.

ley pointed out in
1.95

The
tions

the

cation.

1.80%

measures

the filing of unfair labor
practices against the union.
;.
than by

part of employers to file
wholesale charges of unfair labor

-

1952

with

and

the

on

be added)

1951.

disciplinary

fair

and

ployees where the evidence clearly
showed cause for suspension or

'

1.45

during

stripped of its authority to order
reinstatement or back pay of em¬

the

1.25%

are carried on
working hours, on the
premises of the company and un¬
der
conditions well within the
reach of management authority.
Most of these practices could be
reached far more effectively by
the application of prompt,. firm

of contract,

lation

deter¬

restraint

would expect

Certificates are to be issued under an Agreement to be dated as of August 15, 1947,
w ill
provide for the issuance of $9,400,000 aggregate par value of Certificates to be
secured by new standard-gauge railroad equipment to cost not less than $12,867,800.
which

v

other activities in vio¬

work and

bor-management relations and in¬

•-

These

1949

There

occur.

of

restrictions

employees,

low

mination to apply it constructively
and in the interests of better la¬

and

1948

thing

a

activities of labor

of the

involving coercion of fel¬

unions

encouraging the use of fair
effective-.discipline in such
cases/
The new NLRB has been

dustrial

to

such

that anything of

is, on
the contrary, every evidence that
the great majority of American
managements will approach this
new
legislation with moderation

unconditionally guaranteed as to payment of par value and dividends by endorsement
by The New York Central Railroad Company

(Accrued dividends

that

or

the kind will

each August 15, 1948 to 1957, inclusive-

MATURITIES AND YIELDS

the

alarm

ican industry will utilize this law

>
V

and

public by predictions that Amer¬
as

-

will be greatly as¬
of refraining

policy

a

discipline.

istered

organized

-

in

lectively, it is not only the duty

tion have endeavored to convince

(Philadelphia Plan)

Employers
sisted

be represented and to bargain col¬

Opponents of this

Ys% Equipment Trust Certificates

Plant

Discipline

frorr^ resort to the Labor Board,
except as a last resort, if they are
repeatedly that laws alone will prepared to place greater reliance
not bring about sound industrial on soundly established and firmly
relations and that too great a re¬ administered shop discipline. The
with which plant
liance upon government control effectiveness
and interference in labor relations
discipline was administered has
is contrary to the best interests of suffered severely both under the
both labor and management.
At administration of the NLRB and
Prospects under the
no
time has there been greater the WLB.
agreement among industry that, new law are much more favorable
where employees have chosen to to sound and effectively admin¬

$9,400,000

,

ment Responsibility for

American industry has asserted

bargaining
arrangement work effectively.

2

Increased Importance of Manage¬

mu¬

ing their workers.

make

Equipment Trust of 1947

the employer

however,

obligated to invoke the
sanctions
provided in the law.
Failure to do so might not only
be

may

tually satisfactory settlements by
direct negotiation between them¬

ployer

Second

analysis,

the law.

but-it is good business for the

New York Central Railroad

uations

the free and vol¬

as

endeavored

selves

adequate to cope with sit¬
of this sort.
In the last

be

will

jeopardize his labor relations but
make him party to collusive at^
tempts to defeat the purpose of

untary choice of their work force,
have

a
general rule, prompt and
decisive action by the employer

As

to
employees

possible,

own

collective

has resulted

labor union in
provisions safe-r

the
the

bargaining

wherever

deal

of
of

guarding these rights would, with¬
out question, call for affirmative
action by the employer in the in¬
terests of enforcement of the law.

prosecute charges of
labor
practices
against

practices by unions, Mr. French counsels direct
out it is employer's responsibility to file charges

employers by conference and mu¬
tual agreement.

Favored

firmatively

Holding Taft-Harlley Act imposes

of-

Flagrant and persistent action on
the part
violation

Never

considering

whether

unfair

union

Have

Resort to Government Agencies
or Court Action

By CARROLL E. FRENCH*

bor

alone justify

of this Act.

Employers

Unfair Labor Practices
Director of

benefits would

passage

Employer Policy in Prosecuting Unions for

Thursday, July 31, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

"Number 4616

Volume 166

Treasury Amends
Import Controls

This is not
1

an

(437)

Offering Prospectus. The offer of this Capital Stock is made only by

means

of the Offering Prospectus.

These securities, though registered, have not been approved or disapproved by the Securities
find

Exchange Commission, which does not

Oil Securities

pass on

the merits of

any

.

registered securities.

Secretary of the Treasury Sny¬
der announced the removal of the

import controls on all securities
except certain "scheduled securi¬

200,000 Shares

ties" set forth
in

list issued

a

Stevens & Co.,

July 25 by

on

the

Treasury
Department

of

part

as

CAPITAL STOCK

an

(par value $15

amendment to

ing No. 5.
amended

The 200,000 shares of Capital Stock offered
hereby are outstanding shares and are being purchased by the

American

se¬

The

for¬

or

Underwriters

Company has registered 38,856 shares of
outstanding Capital Stock Which it had previously sold to certain of its salaried employees at $27.87 a share and is hereby
offering to repurchase such shares at the same price, with certain adjustments, during a limited period. Reference is made
to Repurchase Offer described in the
Offering Prospectus.

con¬

trols, persons
bringing

eign

share)

from the Estate of Nathaniel Stevens, the Seller. In addition to these
shares, the

the

Under

curities

a

Rul¬

General

Company has agreed to make application for the listing of the Capital Stock
on the New York Stock Exchange.

dollar

bonds into the

United

John \V« Snyder

The following is the
Company's brief outline of certain information contained in the Offering Prospectus and is subject to the more detailed statements in the Offering Prospectus and,the Hegihtration
Statement, which include important information not outlined or indicated herein. The Offering
Prospectus should be read prior to any purchase of the 200,000 shares of Capital Stock or any decision

States

from

abroad

and persons to whom such securi¬
ties ,are mailed or otherwise sent

with respect to

from a foreign country
required to ascertain whether

directly
are

the securities

are

J.P.Stevens & Co., Inc. (incorporated in Delaware in 1923 as J. P. Stevens & Company, Incorporated)
under Plans of Reorganization acquired in 1946 from their respective owners through, merger
and otherwise the businesses and assets of Aragon-Baldwin Mills, Dunean Mills, Victor"Monaghan Company,

included in the

...

list of "scheduled securities" and,
if

deposit them

to

so,

Federal
York.

Reserve

with

In addition, any

the

Watts Mills, Piedmont Manufacturing Company, Republic Cotton Milk, Wallace Manufacturing Company, Inc.,
M. T. Stevens and Sons Company and, Slater-Carter-Stevens, Inc. for which the
Company issued 1,991,742 4/5
shares, excluding 821,284 1/5 shares received by the Company. In addition in 1945 and 1946 the Company acquired
90% of the capital stock of R. Wolfenden & Sons, Inc.; 79% of the capitalstock of Cleveland Cloth Mills Company
(21 % previously owned) and all of the capital stock of Ragan Spinning Company. The Company and its subsidiary
companies are engaged in the manufacture and sale of worsted and woolen, cotton and rayon fabrics. The Company
also sells as agent for, other textile manufacturers and furnishes financial and advisory services in connection

.

New

of

Bank

individual

.who

has actual knowledge that
securities received by him in a
domestic transaction, whether for

therewith.

himself

or for any other person,
the list of "scheduled se¬
curities" is also required to for¬

are

The

on

Company and its subsidiary companies operate 28 mills, of which nine

capitalization

ruling to the person
Jn the United States from whom

the

Federal

share...............

so

referred to under the heading Experts in the Offering Prospectus and is subject to the information included in
Summary of Earnings and in the Financial Statements in the Offering Prospectus.

Hi
V

-

who

persons

;

Income,

;

Other

Net Profit

Deductions,

-Before

Special

Taxes

dered

"scheduled

Cost of Sales

Other

arid Admin¬

Including
Depreciation

Operating

istrative

out

that

l)ec. 31

or

ten¬

1937

offered

are

Net Sales

$59,000,366

and

1938
1939

1940
1941

1943

168,197,728
176,619,611

1944

175,829,212

on

the list

are

required

report with the Federal
Reserve Bank of New York with
a

thereto.

respect

The provisions of the amended

general ruling, it was emphasized,

apply, to "scheduled securities"
coming to the United States from
Great Britain, Canada, Newfound¬
land, Bermuda, and the Philip¬
pines, as well as from other for¬
eign countries. Previously, securi¬
ties coming from the named areas
were, in general, exempted from
the import controls.
The change
respecting the Philippines was
made by amendment of General
Ruling No. 18.

1945

172,858,955

$1,530,215
1,081,264
1,463,193
1,619,568
2,725,562
2,732,335
2,746,766
3,405,431
2,992,814

Charges, etc*

$3,886,914
3,602,820
4,139,541
4,674,414
6,396,001
5,985,988
6,216,514
6,756,991
7,158,014

3,198,332

79,207,101

126,899,048

1942

are

■■

Expenses

109,905,068

71,064,221
82,044,012

ities

Income-Net

$ 53,428,051
48,017,101
62,565,762
71,636,652
104,684,484
136,298,766
143,428,994
143,612,932
139,734,567

51,950,670

Who refuse to accept them having
actual knowledge that such secur¬
to file

securities"

Other

Selling,
General

Reserve

pointed

•

,

Year

also

3,459,988 4/5 shares*

in the above table,,821,284 1/5 shares of Capital Stock of the
Repurchase Offer of the Company is accepted, the-

Ended

was

Outstanding

•

5,000,000 shares

The following summary of consolidated, earnings on the pro-forma basis (except for the period
November 1,1946 to May 3,1947 shown on a basis of results from act ucdoperaiions) set forth in Note A
of the Notes to the Financial Statements in the Offering Prospectus, has-been reviewed by the accounting firms

Bank.
It

.

earnings
.

with

a

Company are held in its treasury. To the extent that the
number of presently outstanding shares will be reduced.

of the general

them

value $15

*In addition to the outstanding shares shown

in .accordance with the provisions

returned, the last person .in the
United States to whom they are
"returned is required to deposit

par

Amount'"

Authorized

'

Capital Stock

eral Reserve Bank of New York

are

located in the New England States

Amount

unless such securities are returned

If the securities

are

and 19 in the Southern States.

ward such securities to the Fed¬

received.

the Company's Repurchase Offer.,

the company

1,983,379

($160,793)
(
39,860)

+

Federal

Profits

Income

.and State

$

......

1,372,153

861,650
$31#88
1,210,881
1,814,751
4,249,033

'

6,100,369

( 124,502)
( 190,526)
273,955

7,350,703
18,739,788
28,761,622
29,596,367
28,674,194
29,233,143

7,218,034

( 227,236) (a)

32,210,929

4,446,093

(1,025,746) (a)

26,495,165

1,811)
195,663
116,313

Income—*-^

on

'Excess

$ 3,114,823

""278,258
(

on

Taxes
Federal

-

"

$

388,109
5,810,809

16,207 M3

17,953,306

3,875,630
3,425,109

17,403,424
17,253,013

3,387,088
.3,859,473

Net Profit

$ 2,253,173
1,040,165
4,889,488
5,147,843
8,679,946
8,678,109
8,217,952
7,883,682

8,120,657

Ten Months
Ended Oct.

31,1946

146,362,935

754,037

12,545,062

18,911,830

11,500,000

14,995,165

Nov. 1,1946 to

May 3,1947

109,190,726

( ) Denotes red figures,
October

......

(a) Including special charges aggregating $365,581 and minority interest of $85,907 for the ten months ended

31,1946 and special charges of $976,000 and minority interest of $27,494 for the period from November 1, 1946 to May 3, 1947,

capital

♦

stock
The Capital Stock has one vote a share. The holders of the Capital Stock have no pre-emptive
or other
subscription rights. Under the laws of the Company's state of incorporation
(Delaware), the issued and outstanding Capital Stock is fully paid and non-assessable.
'
,

dividends

each

were

,

^

The

Company, since the effectiveness of the Plans of Reorganization (August 31, 1946), has paid
one special year-end cash, dividend of 75c a share in 1946. Quarterly cash dividends of
37fyc a share
paid in January and April 1947 and one of 50c a share is payable July 31,1947.
'

underwriting

Subject to certain conditions; the Underwriters, named in the Offering Prospectus, have'
severally agreed to purchase the 200,000 shares of Capital Stock and, are offering these shares
public at $34.00 a share, or an aggregate price of $6,800,000. Underwriting discounts total $360,000. The
Company will receive no part of the proceeds from this offering.
to the

Coupons appertaining to "sched¬
securities"
are
themselves
"scheduled securities"

.

uled

considered

.under

the

amended general rul¬

ing.

PRICE $34 A SHARE

-

General License No. 87 was also
•amended

so

lift

to

as

the

pro¬

The Underwriters have

agreed to -purchase the 200,000 shares of Capital Stock when, as and if issued
subject to the approval of certain legal matters by Davis polk Wardwell Sunderland
Kiendl,
for the, Underwriters and to certain further conditions .It is expected that delivery of certificates
for these shares will be made on or about August 6,191ftagainst payment therefor in New York funds,
-

hibition

under

Executive

the

Section 2A(2)
8389

No.

Order

of

upon

acquisition by persons in the

♦United

securities

of

States

not

and

counsel

physically in this country, other
$han

"scheduled

securities."

Ac¬

quisition of the latter is still pro¬
hibited.
The previous provisions
of General License No.

IN CONNECTION
.

,

OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINVED

AT ANY TIME.

87 which

exempted certain securities from

information, is contained in the Registration Statement on file with the
Commission and in the Offering Prospectus which must be furnished to each purchaser and is obtainable
from only such of the undersigned as may legally offer these securities in compliance with
the securities laws of the respective States.

Further information, particularly financial

General Ruling NO. 5 are now un¬
necessary

WITH THIS OFFERING, THE UNDERWRITERS MAY EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE

MARKET PRICE OF THE CAPITAL STOCK AT A LEVEL ABOVE TllAT WHICH MIGHT OTHERWISE PREVAIL IN THE

because bf -today's
ruling, and ac¬

amendment to that

cordingly, they
Attention

were

was

deleted.

also called to the

"provisions of Rublic Circular No.
35 also issued on July 25.
In this
connection, Treasury officials em¬
phasized that the amendments of
General Ruling No. ;5 and of Gen¬
eral License No; 87 in no way af¬

Incorporated

do

United States nor,

of
indirectly, in

they authorise any transfer

interest, directly or
such blocked

property.




•

SMITH, BARNEY

GOLDMAN, SACHS &

*■

PAINE, WEBBER, JACKSON & CURTIS
Dated

July SI, 19Ifl,

.

&.CO.

CO., INC.

CO.

THE FIRST BOSTON CORPORATION

fect the status of blocked property
^located fn the

HARRIMAN RIPLEY & CO.

MORGAN STANLEY & CO.

MERRILL

& BEANE
*

•

17

18

THE COMMERCIAL & FINANCIAL CHRONICLE

(438)

Thursday, July 31, 1947

Federal Reserve Analyzes Debt Retirement
of "Federal Reserve Bulletin" methods and results of Treasury refunding to date are
reviewed, and conclusion is drawn new Federal Debt Retirement Program must be adopted to preserve
taxpayers' interest in maintaining low interest rates; to provide Treasury with necessary funds; and to
meet needs of various investment groups.
Cautions debt retirement policy must be designed to prevent
In July issue

E

By WILLIAM J. McKAY

Following the recent announcement by the British Treasury that a
devaluation of the pound is not in prospect, the three "key currency"

excessive credit

countries, the United States, the United Kingdom and Canada now

In

expansion.

leading article in the July, 1947, issue of the Federal Reserve Bulletin, published
appear to be acting in concert with the purpose of maintaining the
by the Board of Governors of the Federal Reserve System, a detailed analysis of debt re¬
existing parities of their respective currencies. Likewise with regard
tirement by the Treasury is given, particularly as it affects bank credit, interest rates and
to the price of gold, parallel action has been taken to prohibit sales

at

the

for

set

last

stage is at

solution to the outstanding prob¬

currency"

lem,
the
present
world wide
shortage of U. S. dollars can also
be found by this same key coun¬

"key

approach to the problem of the
stabilization of the world's cur¬

Tariff adjustments

rencies^ The effort to achieve this try approach.
objective

global

the

by

method

this

between

United Kingdom

play

foredoomed

always

and this method

failure

tamount to putting the

to

tan¬

was

cart before

horse.

the

The fundamental basis on which

of

bulk

the

is

trade

world

con¬

ducted today is constituted by the
U.

S.

the pound and the
The primary ob¬

dollar,

Canadian dollar.

in

ject

of universal

program

a

stabilization is to con¬
solidate the relationship between

currency

currencies

three

these

basis.

fixed

able

the

foundation

on

a

that

On

universal

dur¬

sound
mone¬

tary edifice can then be erected.
Nothing would be more damaging
at

preseent time than to dis-

the

recognized

Jiiprb the world wide
relationship between

these

Therefore

currencies.

the

key

claims

special interests, in particular

of

gold-mining industry,

the

consideration

minor

are

when

of

com¬

pared with the fortunes of world
trade

With
.

whole.

a

as

much at stake there is

so

^authorities of the three countries

successful in spite of all

will be

the

difficulties, in main¬

current

taining the existing parities as a

the battle for the re¬
of world commerce.
^This effort however must be con¬
first step in

habilitation

■

attacking the funda¬
mental causes of economic unsetsolidated by

and Canada will

important role and how¬
seemingly insuperable the

an

better balanced flow of trade not

this

between

only

but

Canada

these

between

also

and

country

countries and Great Britain.

two

accomplishment

of

/

these

by orthodox free enterprise meth¬
ods rather than resort to economic

resultant

its

with

nationalism,

bureaucratic controls and restric¬
which would

tions

end not only

During the week the securities
continued dull and inac¬

market

minimum.

tive with turnover at a
The

externals

but

the

steady
firmer

trifle easier

were a

internals

held relatively

sympathy with the
tendency of the Canadian
in

dollar in the free
were

market. Stocks-

fairly active and firmer with

papers

'■'

tion

Los
a

on

ease

hand
following further
other

the

months of 1947 a

tion

the

of

retirement

considerable por¬
used for debt
obtained through

funds
was

current excess of

receipts over ex¬

ending June 30,
whole, there was a
budgetary surplus of 0.8 billion
dollars and total cash receipts of

the

fiscal

1947,

year

as

a

the

Treasury exceeded cash
penditures by 7.4 billion.

Akin, member of the

Angeles Stock Exchange, and

partner in Akin-Lambert Co.

ex¬

the

and

surplus,

current

funds

of

amount

a

the

for

of

more

than
in

decline

continued

the

offset

Accumulations of
special issues by Federal agencies
and trust accounts have also made
savings

notes.

possible

in the amount
obligations held by

reduction

a

Since
issues

retired

Federal

Reserve

drawal

from

the

by

with¬

System,

funds

of

held

was

to

banks

maturing debt exerted a
Reversal

bank reserves.

on

the trend of Treasury finance

thus resulted in restricting some¬

in
checking the decline in long-term
interest rates that developed in
1945 and early 1946. The restrict¬
ing effect, however, was limited,

CANADIAN STOCKS

because

banks

could

drain

on

reserves

ment

of

INCORPORATED

Thomas A. Akin

TWO WALL STREET

Angeles, died on July 28 in
Winnipeg at the age of 48. Mr.
Akin was active in the affairs of

Los

the National Security

Traders As¬

sociation, having served as Presi¬
dent of the organization in the
past.

to

retire¬

Reserve

held

by
in

B. C.
&

COMPANY

(Special

WHitehall 3-1874

Christopher Adds
to The

orderly

in

order

stable

and

to

assure

market

an

for

Government securities. Because

their

large

holdings

of

of such se¬

curities, banks were able in

this

to obtain any additional re¬
they needed.
Total
bank
deposits declined

way

with

B.

has

C.

become

affiliated

Christopher

&

Co.,

Grain Exchange Building.

Special

LONG

SECURITIES
Government

Municipal

Provincial

Corporate

■




further

on

net

sales

a

bill

eliminated

thus been

as

factor in the money market.

need

The
for large-scale borrowing of

new

money

the
Treasury
completion of the

by

ceased with the

Victory Loan Drive and since that

of nonmarketable securities. Pros¬

time the public debt has been re¬

pects for the

duced substantially.

fiscal year just

new

The amounts will depend on
expenditures,
as to tax rates,

year.

appropriations for
possible legislation
and

the level of taxable incomes.

the meantime there will

be

a

Consequently

to The Financial Chronicle

BEACH,

CALIF.

—

Cleveland Hayter has opened of¬
fices in the Farmers & Merchants

Bank

Building,

to

securities business.

engage

in

a

the

"Under

policy

new

the

Treasury bill rate will be expected
to find its level in the market in
relation

proper

certificates

of

the yields on

to

indebtedness.

The

will con¬
tinue to purchase and hold Treas¬
ury bills as well as other gov¬
Federal Reserve System

securities

ernment

in

amounts

in the mainte¬
orderly government
in
private
demands for credit, security market and the discharge
however, may become more im¬ of the System's responsibility with
portant factors than Government regard to the general credit situ¬
finance in shaping future credit ation of the
country.
developments.
"As
course

of interest rates.

Changes

With the end of the large-scale
debt

retirement,

drain

on

cease.

bank

Banks

deemed

nance

resulting

the

reserves

will also

necessary

of

an

result of the action taken

by the Board of Governors of the
Federal Reserve System in April
to transfer to the Treasury the

will

of

Termination

Federal

Reserve

Buying Rate on Treasury Bills
On

July

2,

nouncement

following

the

an¬

issued:

was

"The Federal Open

mittee

Market Com¬
Federal Reserve

the

of

directed the Federal
terminate

to

Banks

Reserve

the

1946,

in

war

investors. Dur¬
in con¬
trast, deposits of individuals and

held by nonbank

ing the first half of 1947,

results from the termination of the

posted buying rate and repurchase
option .will be largely offset by
increased Reserve Bank payments
to the Treasury."

Growth in public debt brought
in the course of financing

about
the

came

war

ruary

1946

to

when

an

end in Feb¬

the

policy of buyirtg all Treasury bills

stood at

offered to them at a fixed rate of

debt
Since then
gross

it has been reduced

$279f?billions.

by $21 billions
1947.
a reduction
in marketable debt of $31 billions,
offset in part by an increase of
about $8 billions in special issues

%%

per annum

and to terminate
option privilege
on Treasury bills.
The new policy
will apply to bills issued on or
after July 10, 1947. Existing pol¬
icy will continue to apply to bills
issued prior to that date.
"The above action was taken

to $258 billions on June 30,

the

repurchase

This change reflected

by the Committee after consulta¬
tion with
the Secretary of the

offset by a reduction in savings
notes, but total non-marketable
public issues increased by nearly

Treasury.
"The so-called

Treasury

bills

posted
a

was

rate

on

wider

distribution

of

Treasury

peacetime
conditions these arrangements no
bills.

Under

to trust funds and in international

obligations. An increase in sav¬
ings bonds outstanding was about

$2 billions over the 16-month pe¬
reflecting the issuance of

wartime riod,

current

armed forces leave bonds.

The debt retirement program in

1946, which reduced the market¬
able debt by $23 billions

from the
February peak, was financed al¬
most entirely by drawing on bal¬
ances

accumulated in the Victory

Loan Drive.
drive

had

Funds raised in the

been drawn in

a

con¬

siderable part from nonbank in¬
longer serve their original pur¬
vestors, although banks purchased
pose and
tend to distort condi¬
tions in the money market and outstanding issues during and af¬
ter the drive.
Not only did the
the securities market. Certificates
Victory Loan bring in funds in
of
indebtedness
which
bear
a
excess of the announced goal but
higher rate than Treasury bills
also the budget position became
have largely replaced bills in the
more
favorable in the spring of
market, not only as a medium for
the
investment
of
short-term 1946; thus the large amount of
funds obtained in the drive was
funds but also
as
a
means by
not needed for current expendi¬
which banks adjust their reserve
tures and could be applied to pay¬

because of the de¬
loan deposits, but
deposits of individuals and busi¬
nesses continued to expand.
This
expansion resulted largely from
a
sharp increase in bank loans
positions.
and the retirement of public debt
crease

Cleveland Hayter Opens '
CANADIAN

and

expen¬

selling securities which

securities

during

Chronicle)

Financial

OMAHA, NEB.—Allan C. Druesdedow

Street, New York 5

ditures

which

to

exceed

turn

serves

Wall

extent

will de¬

measure adopted in 1942 to facil¬
purchased for Fed¬ itate war financing and to stabil¬
ize the market for government
eral Reserve account. During 1946
securities.
It was designed pri¬
banks also sold additional securi¬
to
encourage
banks to
ties to meet the increased demand marily
make fuller use of their excess
for loans.
The Federal Reserve
reserves
and thus bring about a
System stood ready to absorb these

debt

A. E. AMES & CO.

the

meet

due

Federal

were

64

the

on

Treasury receipts

System has

considerable part of the

a

what bank credit expansion and

TAYLOR, DEALE

pend

securities

has

been made available

drain

CORPORATION

NY-1-1045

marketable

rate

Treasury

again be in a excess earnings of the Federal Re¬
better position to shift into other serve
Banks, the Reserve Banks
during recent
assets offering larger returns by are
now paying into the Treasury
months^ through net sales by the
selling short-jterm Government se¬ approximately 90% of their net
Treasury of non-marketable • se¬
curities to
ih^ Federal Reserve earnings after dividends. Since
curities. Net redemptions of sav¬
ings notes had exceeded the net System, thereby obtaining addi¬ most of the Treasury bills now out¬
tional reserves. New measures of
increase
in
standing are held by the Federal
savings bonds out¬
restraint may be required to check Reserve
Banks, whatever increase
standing during most of 1946, but
further bank credit expansion.
in interest cost to the Treasury
in 1947 a further increase in sav¬
retirement of marketable debt has

in

RECTOR 2-7231

of

,

The

Banks.

serve

a

In addition to accumulated bal¬

redeem

5, N. Y.

deposits almost
completely exhausted by June 30,
1947, possible further retirement

In

penditures.

banks and other investors.

MUNICIPAL

NEW YORK

.

loan

war

public debt,

the

of

oils in the ings bonds outstanding

western

and
Golds

Thomas A.
'

expanded rapidly during the war,
reduced. The sharp contrac¬

was

of marketable

GOVERNMENT
.

ume

repaid, and the over-all vol¬
of bank credit, which had

small

Thomas A. Akin Dead
'

was

ances

•

CANADIAN BONDS

-

1947,

June

a
sizable amount of the huge public
debt incurred to finance the war

flict.

dampening of hopes concerning
government relief for the goldmining industry.

.TV

Febru¬

from

months

through

1946

ary

hopes for the restoration of
world trade but would also be the
fore-runner of a further gold con¬
any

tended to

PROVINCIAL

16

—

With

This surplus was par¬
large volume of maturing debt to
objectives would serve as an en¬ ticularly large for the first three
be refunded, and the nature of
couraging example to the whole months of the year because of
the refunding program will have
world, and would
demonstrate exceptionally heavy tax collec¬ a
bearing upon and be influenced
moreover that the present griev¬
tions, which are customarily con¬
centrated in those months.
For by both credit conditions and the
ous economic ills can be remedied
The

lead.

..

the

In

The^

follows:

full text of the article

of .bank beginning are that there will be there is no reason for continuing
some funds available for debt re¬
this wartime mechanism. On the
obstacles, this situation must be assets, and of total bank deposits
tirement.
Most
of
these funds, contrary, its elimination will serve
tackled in a resolute fashion with during 1946 resulted principally
which in any event will be con¬ a useful
purpose in restoring the
the realization that it is a key from Treasury use of large de¬
less than retirements bill as a market instrument and
factor of a greater problem. Sim¬ posit balances accumulated in the siderably
during the past 16 months, will giving added flexibility to the
ilarly, the revival of the Hyde Victory Loan Drive to retire ma¬
not become
available until
the Treasury's debt management pro¬
Park
Agreement
with
Canada turing obligations. Most of these
first quarter of the next calendar
gram.
would go a long way towards a were held by banks. In the early
ever

question that the monetary

little

the

and

country

constituted by the Bretton Woods
Plan

was

connection the

this

In

policy.

financing

Treasury

prices above the official level. $
as constantly advocated by
tlement.

Thus

practical experts the

a

"Increased amounts of Treasury

sold to the Fed¬
eral Reserve Banks by the mar¬

bills have been

ment
ered

of

in

maturing debt. Consid¬
retrospect, the combined

Victory Loan Drive and the sub¬
sequent retirement program was
have gradually
essentially a transfer in debt hold¬
ceased to be a market instrument.
growth; the effect of a continued
ings.
Long-term debt was first
increase in bank loans was offset Currently, only about 1.5 billion
placed largely with nonbank in¬
dollars of the nearly 1R. billion
by Treasury retirement of bankvestors and the funds were used
held debt from an excess of curr total of Treasury bills outstanding
(Continued on page 28) .
are held outside the Federal Rerent receipts over expenditures.

businesses

showed

no

further ket,

and

bills

THE COMMERCIAL &. FINANCIAL CHRONICLE

Number 4616

166

Volume

materials and

Chairman of U. S. Steel

Denmark and Brazil follow with request

supplies.

Mr.

profit and loss statement.
Government is soon to receive a loan from the
for Reconstruction and Rehabilitiation to be

The Netherlands

Bank

International
h

o r

similar

grant

on

Dutch

for

$535,000,000 to
finance

he

pur¬

i

e r

equip

a

intended
take

been

t o

J. McCloy

John

$150 millions Holland needs dur¬
ing the current fiscal year to
carry out that nation's reconstruc¬
tion program.
Another
loan

for

expected

is

Denmark, which needs funds to
modernize its industry and agri¬
culture.
The amount is reported
millions.
already

$50

as

has

lands

three loans by the

Nether¬
granted

The
been

Export-Import

rower

on

Applies

Also

by

McCloy at a press
July 29 that the Government of
Brazil has also made a "tentative
request"
mined

for

loan

a

amount

for

undeter¬

of

use

in

power

development. He added that two
representatives of the Bank have
already been sent to Brazil to
discuss the proposition.

There are

pending with the Bank the
loan
applications:

still

following

France, $250 million (additional);
Czechoslovakia, $350 'million; Po¬

land, $600 million; Chile,
lion; Iran, $250 million;
bourg, $20 million, and
$208 million. These are
tion to the requests of
and Denmark mentioned

$40 mil¬
Luxem¬
Mexico,
in addi¬
Holland
above.

McCloy made it plain that
was desirous of correlat¬

Mr.

June

9,

$92,000,000 had
by the bor¬

the Bank

ing its actions with the Marshall
Plan for aid to Europe and to

commitment

charge
of 1 Vz % per annum, or $175,849
for the period.
In addition, an
annual commission charge of 1%,
which forms a special reserve to
meet obligations of the Bank, is
payable on the amount of the
loan outstanding. This aggregated
earns

a

$33,452 as of June 30.
Bank's

income
30

This
that

is

income

was

the

to

did

ratified.

ended
$938,647.

year

to

when

9

of expenses

the

amounted

June

loan

for

attributable

loan

until

excess

not

fact

begin

French

the

Prior

to

that

time the Bank's only income was
derived from interest

on

its hold¬

ings of short term obligations of
the
U.
S.
Government.
Asset

in

average

include

costs

will

which

result

from the recent coal labor settle¬
Such

ment.
U.

Steel

S.

amount
a

additional

are

to

now

costs

to

estimated to

further cost increase
least $1.50 a ton of finished

year, or

of at

a

steel.
"This increase

end

of

June

these

in steel prices is

costs

of

the past two

stock.

effect for

;

Gersten & Frankel,

New

way,

New York

150 Broad¬

York City, members
Security Dealers Asso¬

the

ciation, announce that Frank San

steel prod¬

our

Filippo is now in the firm's trad¬

period

specializing

department,

in

foreign bonds.

He was formerly

in

securities

the

foreign

depart¬

ment of Strauss Bros. Inc.

time to

of

j-

This is under
an

no

circumstances to be construed

as an

offering of these shares for sale, or as

solicitation of an offer to buy, any of such shares.
offer is made only by means of the Prospectus.

offer to buy,

or as a

The

July 30,1947

NEW ISSUE

160,000 Shares

Public Service

months.

Company

of Colorado
....

;y••

V!/,

;

.

!•

;

.

Cumulative Preferred Stock
Par Value $100 Per Share

dom has for some time past been

points out restoration of sterling convertibility
will furnish Canada with additional source of United States dollars.

paying for a considerable propor¬
tion of her Canadiian imports with

*Of these

convertible sterling rather than by

"Monthly Letter," the Bank of Montreal, Canada, dis¬
the effect of the steps taken to restore convertibility of sterling

In its July

of the

the unexpended por¬
tion of her Canadian imports with

drawing

on

shares, 62,199

are

being offered by the Underwriters

to

holders

Company's 7%,- 6% and 5% Cumulative First Preferred

Stock pursuant to an

current accounts
receipts of convertible exchange
hands of the Canadian Foreign
transactions as provided by the
are,
for Canada, an additional
Exchange Control Board from cur¬ source of U. S. dollars and con¬
Anglo-U. S. Loan Agreement, and
rent transactions has been con¬
concludes .that Canada will bene¬
versely,
represent a
deduction
fit from it, as it should ultimately vertible into U. S. dollars. The ad¬ from the United Kingdom's hold¬
vent of general convertibility of
make it possible for Canadian ex¬
ings of U. S. dollars.
sterling should ultimately mean
From
the
United
porters to ship to any country for
Kingdom's
that Canadian exporters will be
payment either in sterling or in
restoration
of con¬
standpoint,
able to ship to any country for
U. S. dollars.
According to the
vertibility involves an undertak¬
payment in sterling or U. S. dol¬
Bank's "Monthly Letter":
ing to supply dollars for conver¬

exchange offer

forth in the Prospectus.

as set

to

respect

lars. Necessary technical arrange¬
One of the conditions of the
ments
in
this
respect however
Anglo-U. S. Loan Agreement was
Rave rjot yet, been completed be¬
that the United Kingdom restore
tween the United Kingdom and
convertibility of sterling in re¬ 14
countries, and by agreement
spect of current account transac¬
with the United States the time
tions effected as from July
15,
for such completion has been ex¬
1947.
Steps taken in this regard
tended to Sept. 15.
The final re¬
raise the question of their impli¬
sult, for Canada, should be that
cations from Canada's standpoint.
any impediment to Canadian trade
Since Jan. 1, 1947, Canada has
that
may
formerly have risen
been a beneficiary of a series of
solely because a foreign buyer was
arrangements made by the United
unable to make payment in U. S.
Kingdom in advance of the July
funds as an alternative to sterling
15 date which had the effect of
will be completely removed.
extending the privileges of con¬
It must be kept in mind how¬
vertibility of sterling to current
transactions between a growing ever that such future receipts of

number of countries.

Thus imme¬

to this list on that date.

these

rangements

has

A related

preliminary
been

that

ar¬

since

tries

areas. This
possibility of addi¬
tional strain on her already very
difficult
exchange position and
may give added impetus to moves
now
under
way
in the United
Kingdom further to restrict im¬
ports from other countries, in¬
cluding Canada.
It has recently

against
loans

the
to

proceeds
the




will not entertain

Kingdom
list

on

The First Boston

Corporation

Boettcher and Company

Salomon Bros. & Hutzler

Eastman, Dillon & Co.
Merrill

(

Bosworth, Sullivan & Company

Lynch, Pierce, Fenner & Beane

F. S. Moseley & Co.

Kidder, Peabody & Co.

Tucker, Anthony & Co.

any

requests for additions to the
manufactured
products

R. W.

Pressprich & Co.

Harris, Hall & Company

*

Carl M. Loeb, Rhoades $ Co.

(Incorporated)

of

eligible for entry into that country
a

war

token

basis

of 20%

shipments, although

of

pre¬

Stern Brothers & Co.

Kirkpatrick-Pettis Company

Peters, Writer & Christensen, Inc.

Sidlo, Simons, Roberts & Co.

Earl M. Scanlan & Co.
Julien Collins & Company

one new

list is to be published, based upon

Hallowell, Sulzberger & Co.

Maynard H. Murch & Co.

The J. K. Mullen Investment Company

applications already received. The
Canadian

Minister, of Trade and

Walter &

Company

J. M. Dain &

Company

Kalb, Voorhis & Co,

Commerce has stated that the pos¬

sibility of further reductions in
imports by the United Kingdom
is receiving the earnest attention

of

United

1, sterling coming into the Kingdom and other countries do

Copies of the Prospectus may be obtained from any of the several under¬
only in States in which such underwriters; are qualified to act as
Prospectus may legally bVdistributed,

dealers in securities and in which such

the

been made known that the United

more

share

June 1, 1947

writers

their current sterling re¬

use

implies

viously also, exports of Canadian
Canadian

Plus accrued dividends from

ceipts to buy in1 dollar

convertible sterling as are simply

goods

Price $100 per

sion to the extent that other coun¬

the counterpart of former direct
diately prior to July 15, Canadian
exporters could ship for payment acquisitions of U. S. dollars do not
in sterling or U. S. dollars to 29 constitute any net addition to Can¬
countries and six more were added ada's U. S. dollar holdings.
Ob¬

Jan.

Filippo at

Gersten & Frankel

than three months

more

sufficient

provide this country with any
foreign exchange.
On the other
hand it has been officially stated
in London that the United King¬

Bank of Montreal

of

Frank San

"The wage and salary increases
last April have now been in

--a

earn¬

(which include the profit front
operations other than steel pro¬
duction) were 25.2% less than its
earnings for the first quarter of
this year."

ing
of

the

ings of United States Steel Corp.
the second
quarter of 1947

'We

of

of these higher

for

be ab¬

can

limits

the

some

sheet at the

Convertibility

result

"Reflecting

costs since April 1,1947,

included

Holds Canada Benefils From

cusses

within

present prices
ucts.'

not

in

stated:

Steel

increased

sorbed

than $30,000,000

more

made necessary by substantially
employment
costs;
the
$156,266,- higher
818 in U. S. Treasury Certificates mounting costs of raw materials—
such as scrap, tin, lead, zinc, cop¬
of Indebtedness and accrued in¬
terest and $170,050,105 due from per and palm oil, which are im¬
portant ingredients in the manu¬
banks.
facture of steel; the increased cost
During the last three months of of
goods and services which these
its fiscal year, the subscribed cap¬
subsidiaries must purchase in or¬
ital stock of the Bank was in¬
der to carry on their business; and
creased to $8,024,500,000 from $8,the substantially greater cost of
013,500,000 as a result of the sub¬
replacing worn-out facilities. As
scriptions by Syria and Lebanon an illustration of recent higher
to 65 and 45 shares, respectively,
costs, the price of scrap has ad¬
of the Bank's $100,000 par value vanced more than $10 a ton in

items in the balance

stated. '

sincerely hope that with the ex¬
amount to cover in¬ isting high levels of operations

any

creased

S.

taken

have

inadequacy of their steel
with
the
result
above

prices,

agree¬

U.

which

quacy or

workers of America (CIO), which
in a general wage in¬

ments,

costs

consider in recent weeks the ade¬

resulted

this price
does not

in

place since last April, have caused
these
subsidiaries
carefully
to

crease of 12% cents an hour and
a
cent
per other
employee benefits. At that
pound, or about $5 a ton.
This time, U. S. Steel estimated that
represents a price increase of ap¬ the new labor
agreement would
proximately 7% on the average. result in an increase of $75,000,000
"The costs of U. S. Steel since a
year in its employment costs,
present
delivered
prices
were
excluding large increases which
named by its subsidiaries around would
undoubtedly follow in the
the beginning of this year have
prices of goods and services pur¬
actually increased more than $5 chased by U. S. Steel. At the con¬
a
ton of finished steel, which is clusion
of these new labor
the average amount of
increase.
This figure

increase

of

duction

one-quarter of

Olds

S.

mated

costs

were
made by the steel-making
price subsidiaries with the United Steel-

proximately
Irving

of our esti¬
employment
$75,000,000 a year. This
very substantial advance in U. S.
Steel's employment costs and thd
other large increases in steel pro¬

confirm the accuracy

an

increase ofap¬

Interest is

30.

amount, or $108,719 for
period.
The balance of the

loan

sult

down

of June

as

June

John J.
conference on

announced

was

The
Credit

this

the

over

It

to

granted

drawn

The

Bank, totalling $300,000,000.
Brazil

the

situation for the

due the Bank at the rate of 3%%

of

care

loan

effective

is

instalment

of

statement

a

National of France which became

initial

mated

Mc-

ending June 30, 1947.

000,000

An esti¬

ery.

Mr.

statement shows that of the $250,-

t

machin¬

and

released

year

1 s,

m e n

with

Bank's financial

chases of raw
mat

days,^
"Steel continues to be the lowest
changes in
their deliv¬ priced basic commodity. Compar¬
ered prices for ing the current "Iron Age" com¬
certain
steel posite price of finished steel with
products,
ef¬ the U. S. Bureau of Labor Sta¬
fective
Aug. tistics' index of wholesale com¬
1, 1947. These modity prices, steel prices would
changes, have to be increased, not 7%, but
which
will more than 50% to equal the aver¬
vary for dif¬ age advance since 1940 in whole¬
ferent
prod- sale prices of all commodities.
ducts, will re¬
"Last April new labor contracts

Cloy's announcement of proposed
and pending World Bank loans,

of

total

within the

announce,

next few

Statement Published

Simultaneous

applied

a

steel-making subsidiaries of U. S. Steel Corporation will

implementa¬

its

substantial scale.

a

Financial

to

said

are

have

help

i

i

ment:

"The

otherwise

ton.

per

Irving S. Olds, Chairman of the Board of Directors of United States Steel Corpora¬
July 29, following notification of steel price advances, made the following state¬

on

tion if the plan eventuates and is

Denmark.

to

The

tion,

<e>-

tly fol¬
lowed
by
a
s

Corp. Board says costs' have risen more than price advance of $5
second quarter of this year.

Points to decline of earnings in

Bank publishes balance sheet and

for similar accommodations.

19

Olds Explains Steel Price Increase

$150 and $200 million for reconstruction

Will receive between

(439)

of officials of the Canadian Gov.

ernment

departments concerned.

Pacific

Company of California

Coughlin and Company

Smith, Moore & Co.
Newman and Co.

Amos C. Sudler & Co.

Stone, Moore & Company

THE

Thursday, July 31, 1947

CHRONICLE

COMMERCIAL & FINANCIAL

(440)

20

Competition of Ideologies

Stassen Sees

clash between communism and
Lauds superiority of American system
he

In address at Des Moines

lead to actuaT war.

not

says

Iowa, on July 23, that there is now a
her satellites and the Western Powers, Harold E.

and

and

Repub-<S>

a

c a n

Presi¬

dential

aspi¬

1 i

and teaching

rant, contend¬
ed that the
not

clash will
neces s a r

lead

to

since

this

service and compas¬

i1y

war,

competition that does
not
inevitably lead to war.
It
need not unavoidably be decided
is

"It

a

cept of service, whether
markable strength carries

na¬

For is it not clear
only decide a bid for

it leads to war.

in

that

wars

be

our re¬

with it

of champagne will

case

Griffith,

and Barrett

Chronicle,"

Colorado Springs investment coun¬

essential hu¬ ing questions:
and
(1 & 2) The Dow-Jones Indus¬
within and without our trial Average High and Low be¬
our policies reflect the tween June 12, 1946 and June 1,

whether

country

include the following sum¬
mary of the average guesses to¬
gether with the actual statistics:

UP we

'

"truths

the

of

Brotherhood

(♦)'.

,

Dow-Jones

High

Industrial

Dow-Jones

the actual figures for the follow¬

friendliness

sub¬

To point this

stantial is obvious.

Their guesses came closest to

sel.

been

have

would

guesses,

the

it the

with

manitarian

basic

The

split between A. Wilfred May
"Commercial & Financial

of

essential

carries

Economic Guessing Contest

nies."

spirit of humility,
whether the abundance that rer
suits from our great productivity

the

by force, In fact, it cannot really
be decided by war, even though

spite
of greatest
shipments i n
tion,

clear-cut cleavage between Russia
Stassen, ex-Governor-of Minnesota,

sion and mercy.

.

& Co., has announced the prize winners in
held on June 12, 1946 for the members
of the Press who
attended the<£
That their losses, had they based
luncheon that launched the 1946
Edition
of
"Investment Compa¬ their investment actions on their

Sunday School Convention

before the 21st International

Asserting, in an address

May and Barret Griffith, roll up best scores among
34 participants in "forecasting" contest.

Arthur Wiesenberger

an

at Des Moines,

\

A. Wilfred

economic and political freedom may
under sound and practical economic

policies.
■->

Guessing Derby

Prize Winners in Press
•r

Industrial

(Calendar 1946)

Farm Income

1947;

Cost

(Mar.)

Produc.

FRB Index of

Living Index

of

"Arithmetic

(Mar.)_

average

JBillions.

figures.

225
182
201

Low

(t)
210.85
162.28

189:

$$23 t$24.8
145
156.3
tActual

of guesses,

-

by force and never decide of Man and the Fatherhood of
(3) The Federal Reserve Board
All but five of the 34 guessers
the basic ideas and philosophies
God.' ;
■
i
Production
Index
(preliminary) put down a figure ranging from
history for of men. We hope and pray and
"It is important, of course, that for March, 1947;
230 all the way up to 325—they
foreign assist- endeavor that this basic competi¬ we be sound and practical in our
(4)
Farm
Income,
including were 20 points or more wrong on
ance,
has tion may be decided in the minds economic policies, and that we benefit
payments, for calendar the Dow-Jones ,High.
Twentydemonstrated and hearts of men with the grace look to our future sources of raw
year 1946; and
three of the 34 were more than 20
its superiority of God, without resort to force.
materials and of domestic strength.
(5) The BLS Cost of Living In¬ points wrong '< either on the up¬
by accom¬ But if this peaceful victory for But it is not an accident that this; dex for March, 1947.
Harold E. Stassen
side or the downside) on the Dowplishing
the our way of life is to come to very period of time when we have
Barrett Griffith was first with Jones Low. But as was to be ex¬
pass, the moral foundation of the
been making the greatest ship¬ a score of 30
greatest peacetime production.
points out of a pos¬ pected during last June's still ex¬
"We are
entering the decade peoples of this North American ments of all history for the assist¬ sible 50; and Wilfred May was cessively optimistic period, most
continent of ours is of prime im¬ ance of others beyond our borders,
second1 with
26
which
may
well determine
points, but his of the guesses erred widely on the
is also the time when we have guess for the Dow-Jones Highwhether
that tragic
worldwide portance.
optimistic side. The results give
"This spotlights the magnitude
reached under that challenge the Low for the
war
with its staggering cost, so
year took top honors an interesting insight into the tooof the task in which the thousands
greatest peacetime production of (215-150).
recently ended by the ceremony
heavy weighting invariably given
of Sunday Schools and the mil¬
all history. There is eternal truth
conducted by General MacArthur
The average of the guesses for to emotional thinking by almost
lions of Sunday School workers
in
the
words
"Blessed is
the
on
the USS Missouri in Tokyo
the 34 financial writers entered everybody—even the supposedly
are engaged.
I trust that we catch Giver."
Bay, is to be half in vain," Mr.
in the derby is an excellent selling hard-boiled members of the finan¬
that vision at the opening of this
power

.

"

"We are entering
which may well de¬

Stassen stated.
the

decade

termine

lasting

whether we
peace

or

can

have a

third

a

World

great conference. Not only is the
bringing of religious understand¬
ing to an

individual boy and girl

point for investment trust shares.

Los

Angeles Stk. Ex.

of

the

Elects Two V.-Ps.

longer requisition foreign securities and will permit holders
of U. S. securities to reinvest in other U. S. stocks and bonds.

Will

.

dinate

my

recent trayels through Europe

"and nine of the nations
;and Russia I v^as again impressed
Europe including Russia de¬ with the manifold examples' of

from

of

theii^ needs of assistance

clining invitations to join, makes
very clear that we are to be

it

,

engaged in a continuing major
competition and clash of economic
systems and of ideologies.
It is
the greatest basic competition of
all history.
It is a competition
between the ideology of material¬
ism sponsored

which

denies

by the Communists,
the Fatherhood of

God, depreciates the worth of the
individual human being, and wor¬

of the material¬

the

weaknesses

istic

philosophy. It is apparent
those who seek bread alone,
only lose the richness of a

that
not

It

Exchequer,

has

Commission,

member

firms.

been

plan, iqreign securities will

Phelan

and

the

tion.

securities

would

foreign exchange posi¬

the

help

into higher yield¬
-

.?/>»:»

1

In France,

n

also, the Government

or simplified its re¬
control, however, will be relaxa¬ strictions on foreign, security hold¬
French investors, who had
tion of regulations so as to permit ings.
British holders of American se¬ been forbidden to liquidate and
curities to sell them and reinvest reinvest their holdings except in
the
proceeds
in
other United French Government bonds, will

was

incident

SEC

cause a switch
ing American

longer be

A new phase of

eign investments.

personal life that has in it strong associated with the Los Angeles
Stock and Curb Exchanges from
measures of service and concepts
1929 to 1940 when he resigned to
of eternal values, but also fail to
He
obtain even enough of bread. In enter the aircraft industry.
other words, .those who seek ma¬ will assume charge of the Ex¬
terial advantage exclusively, not change's relations with corpora¬
tions

favorable to the Government be¬

not limit wartime controls of for¬

since January
supervision of its
Mr.

foreign securities by

sujjjec^ to requisition
by the Government, but this will

no

with the Exchange
and administers

a

British investors. According to the
new

Chancellor of 'the
of Commons the

on July 24 that Hugh Dalton,
shortly announce to the House
revised system<$>-

will

for trading in

Jenkins, formerly connect¬
with the
Securities & Ex*

change

restrictions.

some

reported

was

effective date for

-Mr.
ed

no

France lifts

Governors.

us,

Securities Control

Britain to Revise Foreign

greatest possible import¬
ance to him and to her, but also
Continuing his remarks he said: this
task,
multiplied as it is
LOS ANGELES, CAL.—George
"The recent ■ cleat-cut division throughout the nation, is of prime C. Jenkins and Thomas P. Phelan
at the Paris Economic Conference importance to the future direction have been elected Vice-Presidents
arising from the Marshall Plan of our countries and the decision of the Los Angeles Stock Ex¬
and Russia's refusal to cooperate,
of the gravest basic questions and change to serve as administrative
assistants to W. G. Paul, the Pres¬
resulting in 16 of the nations of competition of all history.
Europe meeting to plan their steps
ident, it was announced by B. P.
"I have an abiding faith in the
for reconstruction and to
coor¬ outcome of such a competition. In Lester, Chairman of the Board of

War."

cial press.

stocks

States

These

bonds.

and

re-purchases may not exceed the
proceeds from sales or the money
must be placed at the disposal of
the fiscal authorities, against ster¬

to

relaxed

has

permitted

be

now

to

stocks and bonds.

other

purchases

■new

are

purchase
But the

restricted to

their lives, but fail
securities issued by French com¬
enough of bread. listings as well as assist in the ad¬
panies. Such transfers of invest¬
ministration of other functions in¬
In other words, those who seek
ling. Those mostly affected by the ments will no longer require the
material
advantage
exclusively, cluding public relations.
new
regulations are investment
posed to an ideology based on the not only narrow their lives, but
approval of the Foreign Exchange
trusts and
insurance companies.
fundamental concepts of our re¬ fail to obtain the very material
Joins Heronymus Staff
The new regulation is believed Office.
advantage for which they grasp.
ligious beliefs, humbly recogniz¬
(Special to The Financial Chronicle)
"The moral foundation which is
ing the Fatherhood of God, em¬
SHEBOYGAN, WIS.—Mrs. Mar
established will determine in the
phasizing the worth and dignity years ahead whether the great rion Groffman has joined the staff
only

narrow

to' obtain

even

ships the things of the earth con¬
trolled by rulers of men, as op¬

...

.

,

of

the

individual

human

being,

safeguarding individual freedom,

power

that we develop in

America

carries with it a continuous con¬

of Heronymus & Co.,

Security Na¬

Responsibilities

America's

tional Bank Building.

This announcement is not an
The

offer to sell

or a

solicitation of an offer to buy these securities.

offering is made only by the Prospectus I

confidence in
that

our own

believe

we

in

truth—both good
ourselves

and

2)

,500,000

and bad—about
fundamental

should

phasize the failures of
such
and

Mississippi Power Company
Dated August 1,1947

system and^1-—
and to function under their
telling the.tion

our

We

institutions.

First Mortgage

race

riots

should

our

and

em¬

system,

murders,

remember

„

that

things that we Americans
granted are news to
other peoples. We should seek to
educate the peoples of the world
about the high living standards
of the average American citizen
and the results which are attained

many

take

Bonds, 2Vs% Series due 1977
Due August

as

we 7

not

1,1977

for

individual

enterprise

because

Price 101% and accrued interest

of

under

competitive economy.

a

Leadership

Prospectus may be obtained in any State in which this announcement is circulated from only
the undersigned and such other dealers as may lawfully offer these securities in such State.

The




type of

we

realize

democratic system.

come when the
of America will
have to say no to any further en¬
croachment by Russia. When that
time arrives, and it may be short¬

time

The

will

States

United

and confidence will be
many countries bor¬
dering on Russia.
;

ly, faith

to

restored

must give

We

realize

must

intelligent sup¬

the Marshall Plan.

to

port

that

We
in

recovery

will be a slow process, but
England and the Western Eu^

Europe
that

countries will recover and
enterprise will
over
Communism and

ropean
win

individual
out

Socialism.

hot,
America has assumed a position
of world leadership.
With lead¬
ership
go • responsibilities.
It
will be enlightened selfishness on
it

or

Joins Smith, Moore
(Special

ST.

Co,

to The Financial Chronicle)

LOUIS,

MO.—Robert

M,

recognize our Daley has become associated with
present world responsibilities and
Smith, Moore & Co., 509 Olive
if we assist those countries which
Street, members of the St. Louis
are
attempting to put. their own
Stock Exchange. Mr. Daley was
houses in order and which will
previously with A. G. Edwards &
agree to use our goods and cred¬
our

HALSEY, STUART & CO. Inc.

own

that
The Responsibilities of Our

Whether

July 30, 1947

Leadership

For World
(Continued from page

part

its to

of

we

develop maximum produc-

Sons.

.

Volume

166

Number

4616

THE COMMERCIAL & FINANCIAL
CHRONICLE

Rapid Nationalization oi French Industry

(Continued from first page)
flict since the liberation: as owner
of the nation's railroads and
power

works, and
Services.
Will

crisis

present

"dirigism"

induce

This

cording

to

and

eco¬

steer

is

all

achievements

nationalization
the

French

the

in

of

pres¬

iron

but

bring

industry,

control.

government

this

at

the

as for instance

steel

and

of

field

industries,

key

Government

industries,

new

likely ac¬
Mr. ' Andre
Philip,

to

Caution

moment has no intention to

a

toward economic free¬

new course

dom?

Present

"Although defending the
ent

the

France's leaders to abandon
nomic

State-appointed Director Gen¬

eral.

their

of

consumer

as

the

One

for

needs a period of readaptation and that we must go

questions.

Mr.

Professor

to

his

answer

Philip,

former
Economics of Lyons

of

a

University, is one of the principal
instigators of France's state-con¬
trolled economy.

Plans for taking
the country's key industries

over

have

worked

been

out

by
Philip and his collaborators.
Close

"The

;

Control

Still

economic riches under the control
of the

people. We do not intend
change our present course of

to

closely the country's
certainly do not
the policy of
nationalizing key industries and

controlling

to

to

them

return

their

to

nationalization of industries is not
involved in the present

labor

con¬

Public ownership of indus¬

trial

ment and financial results.

In the

private sector of French economy,
are enterprises which show
a
profit at the end of the year
there

others which

show

deficit.

a

It is exactly the same with State-

.controlled

industries.

several

years,

prises such

as

For

many

important enter¬
the tobacco monop¬

oly, the public presses, the potash
and nitrogen industries, have been
by public authorities and their

run

economic

financial

and

results

have been excellent,

"Some

v

,

enter¬

has

to

study the influence of national¬

ization
similar

Repercussions

period and that

reorganization

a

is under way.

industries

portant services to the French
.public at rates which are far be¬
low the general level of prices.

.French coal prices are kept con¬
siderably
below - those on
the
world market. The railroads have
raised their tariffs to four times

in

Blum

Started

State

From

Belgian

investigation

that

the Belgian experts re¬
jected the project for State con¬
was

trol

over

of

Belgian mines. In the
the Belgian Senators,

nationalization of the French coal

pits has not been
from

the

a

either

success

technological

from
"The

or

The

period

Control

of

began

in

systematic

state

industries, however,

1936

when

the

first

left

the

sent

of

The

entire

not

preserved

credit system
is supervised by the "Conseil Na¬
tional du Credit" which has 38

several

minor

enterprises

state

controlled institution.

period are actually a continu¬
ation of this prewar policy with
war

frequently

* the

"planners"

same

in charge

of carrying out the na¬
policy.
Mr.
Jules
Moch, who today heads the French
railway system, was Leon Blum's
right hand man for industrial
questions.
Mr. Andre Philip, at
tionalization

However, after the

war, public
industries be¬
came the platform not only of the
left wing parties, Socialists and
Communists, but was also adopted
by the big French center party,
the
Popular
Republican Move¬
ment. Backed by the three major

ownership

of

key

political

now

a

becomes

state

time

same

French

coal

creased

in

social conflicts.

production has in¬
16% as compared to

by
time

but

the

number

of

than 40% higher
the war.
The effi¬

more

before

than

party and judge at

France,
control

country's economic
gained in momentum.
Worked

out

life

the
over

has

immediately after
the

of

country, the

nationalizing French key in¬

dustries

were

voted

feyi the
tional Assembly
during the
1946.

Na¬
year

The

"Charbonnages
de
France," comprising virtually all
French coal pits,

constituted

on

were

looked

overlooked, how¬

many years before thd

to

up

capitalists
already
State intervention

tor

helping them out in difficult
situations. Many business leaders
in France put their trust rather in
State subventions, protective tar¬
iffs

and

artificially cheap credits

than in their

business capac¬

own

ity and their enterprising activity.
A long time before World War
II,
two leading business Organizations

"National Association of Economic

Expansion"

May 17, 1946.

The

of

the

French
up

power

in May-June

of

and "General Federa¬

French

Companies

Public
On

April

Under

Ownership

25,

1946,

companies

French

in¬

under

came

public ownership, 34 private com¬
panies being nationalized and re¬

organized

in

companies.

24

State

Government set
up the "Caisse Centrale des Re¬
assurances" which controls French
The French State also
owns the

"Renault Automobile
Works," con¬

fiscated from their "collaboration¬
ist" owner.

Press

It controls the French

Agency

and

Radio

Com¬

panies; it has

a large share in the
industries and runs a

shipping
number
It
real

of

is

chemical

plants.

difficult

to

estimate

importance

of

state

ship in the framework

the

of

one

fifth to

one

sector

the

State

comprises

third of the

sector

French

entire

coun¬

embraces

most

key industries and the

credit

protective tariffs,

and

advantages for the exploita¬

tion

of

the French

Colonial

Before
vention

plans
had

laid

down

balance

still.. their

and

ernment

francs 2,000,-

will show a profit of

000,000 this year.
"The

.

administrative

present

of the nationalized

statute

enter¬

of

taxpayers' money to
leading banks, shipping
companies, film trusts, etc. from
becoming bankrupt. If left wing

prevent

parties

in

France

liquidate
task
the

went

out

admitted.

be

reaucratic

and

the

account

It is

fails

special

too

to

take

bu¬

in

conditions,

prevailing in different industries.
New statutes for different types
of

industries

are

worked

out

by

services at this mo¬
future, there will be

government
ment.

In

-different

statutes
like

industries'

works

the coal

or

'concentrated

for
the

business,"
their
greatly facilitated by

was

French

businessmen

electricity

industries'

like

the

Renault Automobile Works which
are

run

the State. We will,
discriminate between
nationalized
industries

by

moreover,

those

which hold
their field

a

virtual monopoly in
the potash mines

like

appealed for help to
the State instead of relying on
their own acumen and ingeniosity;

Tyree P. Burke With
Leonard J. Feriig & Go.

organization.

Special to The Financial Chronicle

INDIANAPOLIS, IND.
P.

Burke

with

has

become

Leonard

Berry

„

J.

The

trend 'toward

trolled

"directed"

or

state

con¬

& Col,
Street,
Fort

dustries

the

as

most

in

economy

France, with the nationalized

in¬

of course,
conditions

strongly

due to

postwar
to

as

the

anti-capitalist mentality
sections of the French
The- avowedly "Marxist"
Socialists and Commu¬

among large

people.

same

Ind.,

Chicago
Burke

spectacular

war and

well

as

Wayne,

was

Slayton

&

of

members

Stock

Exchange.

formerly

an

Co., Inc.,

past

was

with Paul

Co.,

and

conducted

vestment business in

H.
his

tees

in

"employers and
equally represented
running the mines."
'
;

This

are

announcement

is

not an

The

,

own

alized enterprises.

E.1eslie

offer

to sell or a solicitation

of

an

offer to buy these securities.

offering is made only by the Prospectus.

declared

too optimistic.
coal mines,

to

13V2

are

VA%

esti-1
in

the

Dated

by far

Sinking Fund Debentures due 1972

July 1, 1947

Due

.

July 1,1972

The deficit of the

this year, will amount

billion

francs

Price 101% and accrued interest

the

and

ally a loss of 15 to 18 billion
francs in 1947. The fact that other
state

controlled

no

enterprises

are

better condition is indicated

by
the
French
extraordinary
budget which foresees state sub¬
ventions

francs

to

The

Prospectus

may

be obtained in

any

State in which this

of the undersigned and other dealers

as

may

announcement is circulated from
only such
lawfully offer these securities in such State.

amounting to 70 billion
be paid to nationalized

industries.
French

private

State

has been

ran

long

over

the

did

process

not

begin

several

which

decades.

between-wars

French

nitrogen

the

At this

a

HALSEY, STUART &, CO. INC.

interference with

industries

with the end of World War II.

the




results

Light Company

industry will show eventu¬

power

French

board while limiting the power of

government

nationalized industries

larger place for the
administrative

that

financial

of

the

of

Florida Power &

the French

In

Assemblies, Mr. Henri
Lespes, Deputy of the Catholic
Popular Republican
Movement,

that

initiative

$10,000,000

National

in

we

the
&
in¬

Indianapolis.

logical difficulties of the nation¬

tended

In competing enterprises,

in

Davis

which

workers

was

reserve a

the

Mr.

officer of

and

-

with industries of the private sec¬
tor.

Tyree

Fertig

Court

at

—

associated

organization" in the coal
mines with professional commit¬

and those which have to compete

will

them¬

selves who

sional

'federated: in

mines, and for

to

"big

year.
parties,
With G.
& Co.
ciency of the individual workers
At the same time, the French
nists, hold a majority in the
has considerably gone down." For
Special to The Financial Chronicle
National Assembly began to tackle
French Parliament and the third
Belgium, the report concludes, the
HALIFAX, N. S., CANADA—
lesson of the French experiment the French credit
problem, bring¬ big party, the MRP (Mouvement Edgar W.
Mingo is with G. E. Les¬
is to keep away from "nationali¬
ing most of the country's financial Republican
Populaire), although lie & Co., Bank of Nova Scotia
zation" and state control but to
institutions
under
water
at odds
tight
wjth the left wing on Building.
set up a "regime of free profes¬

prises is by no means perfect, it: mates
must

by

the
enemies of free enterprise,
the French Treasury spent
already

•

Financial Difficulties
but their charges
French critics of Mr. Philip have
by eight!
The board of the power works
put more stress on the financial
wanted to increase rates by 30%. predicament than on the techno¬
This has been refused by the Gov¬

inter¬

State

for

been

multiplied

been

Em-<

pire."

thfc prewar level

havef

subr

ventions, government aid in establishing export credit insurances

try's productive facilities.
More
important is probably the fact that
of

prosperity of busi¬
prosperity for all.

French

economists estimate that the

state-controlled

the

means

favor

owner¬

economy, but government experts
and

because

billions

reinsurance business.

in¬

and commerce at home and abroad

insurance

The

Production"

their program that "the
State should aid French
industry

We

definitively expression of this development is,

two national societies "Electricite
de France" and "Gaz de
France,"

comprising
the
plants, were set

Insurance

surance

The nationalizations of the
post¬

laws

are

enterprise, a
state trust and^ldte" monopoly.
One of the particular shortcom¬
ings of nationalization is that the

French

nessmen

came

public ownership. The Bank
France, main source of French
credit, was transformed into a

zation.'

The coal mines

that

war

tion

the liberation

bureaucratic

Representative.

It must not be

ever,

sisted in

its management from the dangers
of -'etatization' and 'bureaucrati¬
vast

State

French

wing government of
"Popular Front," headed by members,. 14. of them government
Premier
Leon
Blum, officials, the other representing
came into power.
This year, the the nation's economy, the trade
French railroads, the aircraft fac¬ unions and the financial
institu¬
tories, the armament plants, and tions.

the

"has

by

commis¬

many problems, agrees with them
the nationalization issue.

the

Coal

said,

government

—

21

on

Socialist

groups
in
movement for state

mission

The

controls

con¬

the financial point of view.
autonomous status of the French

Mining Company," the Com¬

institutions.
also

"banques
d'af¬
faires" (business
banks) which for
their major operations need

this time, played
already a leading
role as Socialist "braintruster."

Policy

prewar

-of these

production

possibly to recommend
measures for Belgium.-

workers is

.Most of the recently nationalized
services are supplying vitally im¬

coal

on

,

France and

cits which have to be covered by

Treasury and eventually by
the taxpayer.
But we must not
forget that this is a transitory

come

French public opinion has been
impressed with the report of a
Belgian
Senatorial
Commission
which toured French coal fields

prises, nationalized after the war,
show—it is true,—important defi¬
.the

under

heavy
fire from different sides
recently.

the

the industrial

of

by his numerous
Government control of

opinion

enterprises has no influence
.whatever on technical manage¬

and

shared

The result of this

of

saries—French

private management.

state
of

of

not

"Societe Gen¬

le Commerce et l'lndustrie"

became

under

private

the policy

Moreover,

of

Mr. Philip's optimism on the re¬
sults of industrial nationalization

abandon

owners.

flicts.

this hour."

We

economy.

want

leading French private enterprises
are
not realizing any profits at

critics.

goal of bringing the nation's

pur

The

reforms.

structural

industry

Sought

present difficulties," Mr.
told
this
correspondent,

Philip

means

is

Mr.

"will by no means divert us from

heavy losses, due to the incapacity

French

on

country's
deposit
banks,

erate," "Comptoir National dEscompte," and "Banque Nationale
pour

control of key

other is that we do not want to
nationalize deficits and that many

leading

from

The

"Credit Lyonnais,"

Government

was
forced to interfere
to protect shareholders and credi¬
of these enterprises to incur

slow

who, despite his
numerous occupations of the hour,
was kind
enough to receive this

"liberated"

influence.

tors

economy

Affairs,

The Bank of France

definitely

private
four

ernment

restraint is that the French

our

acquired large participations

reason

French Socialist Minister of Eco¬

was

in the shipping industries, in film
companies, in several banks, etc.
In most cases, the French Gov¬

under

nomic

correspondent and

ury

(441)

state control.

State

took

potash mines

in

BROS. &. HUTZLER

OTIS &

It

ex¬

CO.

(INCORPORATED)

R. W. PRESSPRICH

&, CO.

It

period

production

SALOMON

COFFIN

&

BURR

INCORPORATED

SCHOELLKOPF, HUTTON &, POMEROY, INC.

GREGORY & SON
INCORPORATED

BURR & COMPANY, INC.

over

and

Alsace,

moment, the French Treas¬

GRAHAM, PARSONS & CO.
July 31, 1947.

HIRSCH

& CO.

PUTNAM

&, CO.

)

THE COMMERCIAL &

(442)

22

and insurance companies during the Sep¬

savings banks

to

bonds

214s due 1959/62 and the 2V2s
most favored issues among the

operations. -. .
The restricted
due 1962/67, and 1963/68, are still the

tember

Our

Reporter on Governments
By JOHN T.

to
have a
to talk
of a new issue
(now denied) and to selling by 'free riders"
prior to the payment date. . . . Some of the latter out-of-town
insurance companies are reported to have good sized buyers of

.

their hold¬

1959/62.

ings of the 2V4S due

pared with the ones they

used to carry.

.

had

certificates are in good

shorter

The

maturities.

demand.

.

.

of operations pre¬

ribald age

tues

*

that the adjustment (if

ion is held here

bonds will be very minor.

these

in

is being maintained

however,

of Massachusetts and

any) that has to be made
Ample buying power

by these institutions to take on
issues in event of price weak¬

ness.

new

as

very good for the longest partially ex¬
along with the proceeds from the sale of

still

is

demand

The

empts,

money

maturities are being put to work in these
The larger commercial banks are the main buyers
exempt issues.
f .■
; / ■
...
shorter

obligations. . . .
of the partially
1

_

\

1956/59 as well as the 21/2s due
market with the demand coming

The 2V4s due

the

of

out

9/15/67-72 are going
from practically all

indicate that the Southwest and the
important ones now in these
obligations.
.
.
Buying is somewhat cautious with no desire on
the part of investors to push prices up, although there is a strong
reports

although

sections,

institutions are the most

Pacific Coast

.

for these issues.

demand in the market
is

There

•

....

in the Zy2s

buying interest appearing now

some

sizeable movement out of these
obligations into the partially exempt bonds. ... It is teported
that certain of the institutions that are buying the 1952 ma¬
turities are dqipg it w^th the idea in mind of having securities
that can be Eventually turned in for the restricted'obligations
1956/58,

due

.

after

that will be bank

rather

a

eligible^ in that year.

. . .

>■

SEPTEMBER REFUNDING

September

The

refunding operation is taking on

portance in the money markets, with all kinds of
what is likely to happen again making the rounds.
all the way

vary

greatly restricted
investors.

that

.

obligation but

rate

higher

a

will

bond with a five year or
coupon.

slightly

curities.

seems

to be no doubt ,that

...

COMMERCIAL BANKS

!;.

i '

The feeling

since

that

obligations

the

that
in

short-terms
piore
;
■

j

seems

they can

s

indicated needs they are
longer-term issues. ...
trend, but it was believed that higher

their portfolios to meet

inclined now to move into the
This is not a new
rates would

short-term

extention of maturities.

|

commercial banks
any longer-term
purchase, and with apparently enough

to be growing among the
is not likely to issue

Treasury

have a retarding influence upon the
It is being pointed out that although

...

increase in loans is looked for these institutions still
should have ample funds that must be kept at work to meet
increased operating costs. The way in which this can be done
is by moving out into the longer-term, higher income obliga¬
some

tions.

...

Likewise, the banks are
more

beginning to give greater consideration

factor in the eligible obligations, which is
important with the passing of time. ...

to the scarcity

becoming

the money

agencies

two

just

dis¬

two simple

(1)

to

elements in common:
an
unwholesome

correct

to

situation; and

(2)

basis that will pay

to do it on
its own way.

It does not follow that
rate

a

sepa¬

created

be

must

agency

a

to

settle each individual trouble but

Sound

these agencies do show

city government

can

be

along by facing all the
and coming to grips with

facts

whatever

errors

sistent

most likely

seem

an

what con¬
unity of thought can do for

aggravated condition within a

community.'

yield to sensible treatment. Ob¬
viously the process is a continuing
one.
It is many-sided and must
to

The "Authority" or "Development
Area"

Too many

approached with an unbiased
mind, if possible.
Correction of
obstacles in the path of over-all
be

Representa¬
of Ohio, in¬

branch

the

of

legislation strikes at
national

government

create

such agencies would

ment

area"

be

can

greatly

ex¬

panded in many places before the
idea becomes top-heavy with too
much

tive habits that is

able

defect in
administra¬

equally vulner¬
and well

conscientious

to

considered attack in local govern¬

enlarged

use.

piercing

such

a

problem may be solved by accu¬
rate diagnosis of the trouble fol¬
lowed by

the

means

action
both

administration.

of

mutual agreement as to
of solution. In this case
the state legislature of

New

analysis of the Lodge-Brown
legislation indicates that correc¬

was

tion of these administrative faults

setting

An

York and

New

Jersey

who
to

where they work.
One of the

concurrent

1931

contribute constructively

public life of the commu¬

nity, but who have sought better
living
conditions
in
suburban
areas beyond the limits of the city

necessary.

In

can

the

legislation

the unified control of
Authority over various
traffic declared that
"vehicular traffic moving across
up

first steps to be taken

bring about successful unity
and
consolidation in municipal

to

government and management is to
prepare local representatives by
providing them with overall facts
bers. The President would appoint
four members, the President of the interstate waters of New York relating to their community prob¬
the Senate would appoint four and and New Jersey constitutes a gen¬ lems well before state legislatures
accomplished by appoint¬

could be

ing

a

commission of twelve mem¬

Speaker of the House would

the

Two appointees of

appoint four.
each
be

appointing authority would
private life and

chosen from

the

Port

of

arteries

of

movement

eral

the

follows

practicable

most

traffic which
accessible and

and

routes

each

of

users

bridge

that the
or

tunnel

under these waters ben¬

the other two of each appointing

over

authority from the executive staff,

efit by the

the Senate and the House respec¬

bridge

tively, making the twelve in . all.
This
been

the

urgent

question

has

thrust suddenly into

national

or

not

either

local administra¬

tive set-up. The need for correc¬
tion in most cases has grown up

gradually

and

stems

principally

from the aversion of those

litical power to cut off
sources

the

fixed

in po¬

voluntarily

of patronage. Hence,

dislike

in many

—unless

it

expands

or

convene.

in

Only

this

way

can

legislator advance or defend
the measure he is sponsoring in

the

opposition which
almost certain
to throw at any bill, regardless of
merit. Local governing and plan¬

the

face

of the

his colleagues

are

existence of every other
tunnel since all of the
ning bodies have frequently been
bridges and tunnels facilitate the
at fault in this respect, not the
movement of such traffic and re¬
lieve congestion. For this reason legislator, most of the latter being
the two states agreed that the con¬ eager to have their names attached
struction
and
operation of all to legislation which will help their
communities.
It
behooves
the
bridges and tunnels . . . shall be
unified under the Port of New management of individual! cities
to get their ideas in shape and
York Authority so that the cost
of construction, maintenance and provide their local legislators with
information so that
operation ... as a group ... be pertinent
when the final gavel pounds on
self-sustaining.
."
or

^

quar¬

.

The

ters for altering existing

formulae
the current

quarterly basis. . . . Rumors still persist that geometric design and creates
degree of political capital.
managers will make an offering of long-term restricted




system.

a

These

cussed, working for the same ends
on
different city problems, have

helped

commissions, 15
heads of departments and major

any

QUARTERLY CERTIFICATE OFFERINGS?
There is considerable talk in the financial
district that the
Treasury will gradually eliminate monthly maturities of certificates
and put them on a

such
v

continuing source of
finance and maintain

Progressive Reform Proposed

and

boards

ment

...

unless something attractive
is offered to the banks, the largest holders of the September ma¬
turities, these institutions will do their own refunding, which means
the purchase of the outstanding higher coupon, longer term se¬
There

to

revenue

troubles unless
Mr. Kenneth P. Vinsel, Execu¬
together has fol¬
tive
Director
of the Louisville
lowed along a line of condensed
agencies, 5 people in the executive
Area Development Association, in
office of the President, 7 people in and logical thought. Gathering to¬
an address given recently in Mil¬
the White House staff proper, 11 gether a group of weak and poorly
waukee before the Citizens Con¬
managed communities will not by
persons in those emergency agen¬
ference on Planning, spoke of the
cies which are still functioning, any means guarantee that the sum
need for state legislatures to rec¬
and 3 persons pertaining to the total will be strong even though it
ognize and correct troubles before
may be big.
Joint Chiefs of Staff, who all have
they
become
acute, - especially
direct access to the President of
Intercommunity consolidation to
where the larger cities and met¬
achieve the greatest benefit must
the United States."
ropolitan areas are concerned. He
The bill seeks to "consolidate"
follow a plan of discarding proc¬
also said that "annexation should
functions of all departments and esses that have lived beyond their
be used whenever possible." Fur¬
to promote better and less expen¬ time in individual towns. Whether
thermore, "it (annexation) may
sive service for conducting the this can be done directly is a
pot be an immediately profitable
business of this country's govern¬
question. There are ways in which
procedure when the costs of im¬
ment for the many millions who the process is proceeding indirect¬
provements and services are com¬
are
obliged to have transactions ly which, while more round about,
pared with tax returns, but an¬
will in the end produce good re¬
with it in one way or another.
nexation will pay dividends in
The bill not only would consoli¬
sults.
other ways.. .." Mr. Vinsel points
date various functions but it would
out that a very important gain in
Port of New York Authority
also define and
limit executive
this connection would be to bring
The Port of New York Authority
prerogatives believed to be in¬
within the corporate limits a valu¬
herent or implied in certain func¬ may be cited as an example of
able group of substantial citizens
how
an
individual
municipal
tions and activities. This proposed

looking
as a whole the opinion seems to be
be offered by the Treasury in the
Talk about a three to four 1%% note

maturity, carrying a 1 y2%

sewer

a

profitable results.
Mere physical consolidation or
annexation is useless and likely to

market followers that are

money

September financing. . . .
is being heard as well as a
longer

.

<
some

are

1%

a

to

Opinions
from a 15 months 1 %% note to a new issue of
bonds that would be offered only to non-bank
.

...

There
for

greater im¬

guesses as

to construct

and set up a

sincerely hoped that a cata¬

will not be necessary
change this airy attitude.

a

system for the metropolitan area

It is

clysm

bill aimed at correcting

a

executive

the

of

ACTIVE ISSUES

more

by

ing to the best advantage.
Senator Lodge pointed out that
"there are actually 150 members

in

...

which is prone to look

burst of robust enthusiasm.
to be

County

government the same basic faults
of
duplication and overlapping
agencies that prevent many indi¬
vidual communities from operat¬

troduced

of the intermediate term

more

as

for

only set up a group of more or
less independent municipal prin¬
cipalities that might be tempted to
good government one at a time,
rather than an attempted attack jockey for high spots in public
favor and in the end the jumble
on too broad a front all at once,
would be worse than before. How¬
will be more apt to produce prac¬
tical as well as more lasting and ever, the "authority" or "develop¬

tive Clarence Brown

...

same

provided

legislation

empowered

amused tolerance but without any

angle in Washington, D. C.
Senator Henry Cabot Lodge, Jr.,

out

going into the 1952 maturities in fairly large volume
of near-term issues in order to improve income. . . . The opin¬

large and small, now

shy and sober vir¬
objects of curiosity with

the

upon

greater efficiency in governmental
units was tackled from another

Others

.

govern¬

spend for their services. Solvency
is not to be despised even in this

. . .

are

^

that

mental units,

will

higher yield for the one year

flying all

are

dollars

payroll of several

in activity in the Government market has been pared for the-year in which the
United
States entered the first
welcomed by the trading fraternity because there has been quite
World War. The average indus¬
a number of dull listless sessions in the recent past. . . . The month
trial unit operating with the men¬
of August as a whole, however, has not been a very productive one
tal and physical equipment suit¬
because it is the vacation period for many portfolio managers. . . .
able to 1917 would go broke today.
This year will again find many of them away from their desks
That more cities do not go broke
during August. ...
is pretty much due to broad and
MARKET ACTION
increasing taxing powers and the
The money market is adjusting its position to the new condi¬ fact that population growth and
industrial progress has been on a
tions, with investors switching and making other changes that
enable them to meet their particular needs. . . . Some institutions sufficient wide front to sustain the
increased tax load.
are moving from the longer certificates into Treasury bills because
A few weeks ago the problem of
of the opinion that they will be in a better spot to take advantage
of the expected

the

for

scant resemblance

to the diagram

.

,

the

Metropolitan
law giving the
city the right to form such a dis¬
trict.
The law provides for set¬
ting up an organization which is

around that greater value must be

bears

millions

The. increase

(

State

Sewer District

signals

Warning

schedule of opera¬

personnel of this com¬

tions and

on

the creation of the Louisville and
J eff erson

munity with a

quite small when com¬

nevertheless, are

positions,

These

...

The current

needs

sewer

track—namely, to make the new
and improved facilities self-sup¬
porting.

(Continued from page 7)

inventories

Reports indicate that dealers have been building up
of the eligible obligations, as well as

selected issues

in

approached find¬

to its current and

answer

an

future

Municipal Ills

ACCUMULATION

force to helping

Louisville has

Consolidation—One Answer to

.

.

They apply with equal
unravel the tan¬
gles of through highways in met¬
ropolitan areas anywhere; alse
sewerage, health and welfare, rec¬
reation, airports, law-enforcement
agencies and general planning.
troubles.

ing

Zy2s.

longest restricted

the

movement of bank

obligations.

higher income longer-term

savings banks and dealers added

the longer World Bank bonds, which
better tone after the weakness which was due largely
holdings of

their

CHIPPENDALE, JR.

far had no effect upon

short-term rates has so
funds into the

...

companies,

Insurance

defensive tone, with
the bank eligibles still making the best showing. . . . The restricted
issues, under the influence of selling by the powers that be, continue
to make new lows for the year. . . . Despite the downtrend in the
ineligibles, substantial amounts of these obligations are being taken
out of the market by non-bank investors. . .
The deposit banks
also are adding to their positions, with the trend of purchases show¬
ing no change, that is from the shorts into the longs. . . .-The rise in
The

.

ineligible obligations.

Government securities markets have a

'

Thursday, July 31, 1947

FINANCIAL CHRONICLE

a

.

.

so

.

forward-looking,
program
for their
broad application community may be on the statute

significant words "unified
that costs
be self-sus¬
.

taining" have a
to the difficulties

.

.

of

many

city

session,
constructive

the

books.

a

yolume 166

Number 4616

THE COMMERCIAL & FINANCIAL
CHRONICLE

As We See It
I

British delegate to UN Economic and Social Council
questions whether nations
to news in each others' countries can
belong to United Nations.

the authorities taken these forecasts too seriously and
laid out extended plans of the typical New Deal type
to prevent

;

In

the expected depression.

required for main¬

taining full employment, etc.—are highly interesting, not
to say

somewhat amusing.
This super-board finds that we
today producing goods and services at the rate of about
$225 billion a year.
Never before in our peacetime history
prior to 1946 have we ever attained even half that level.
In
are

1929 the

figure was only $104 billion. In 1939 it was only
$90 billion, and the following year with the influence of
defense and war work, we reached
only about $100 billion.
The banner year, 1941, recorded
only $125 billion, and the
war
peak in 1945 was only $213 billion.
this over-all figure of the Washington
easily be misunderstood by the uninitiated.
It makes no allowance for
capital goods
consumed in the production of current output.
Our
current rate of net economic gain is definitely lower
than these figures suggest, but comparisons of net figures give about the
same appraisal of current rates.

i

j
j
I
'

-

disposable personal income, for
example, or what the individual has of current earnings
after he has paid his taxes.
This figure is currently
running at about the annual rate of $170 billion, according to the President's experts. In 1929 it was $82
billion; in 1939, $70 billion; in 1940, $76 billion; and in
1941, $92 billion.
In the peak war year, 1945, it
reached $151 billion.
♦

j
j

J

j

as

And such

figures as these and many more which might
them, ultimately emanate in many instances
very economists and statisticians who a few short

accompany
from the

months ago were
time of the year.

predicting a situation far different by this
There must be a good many red faces in
Washington these days!
'
.

the

—

.

free

to

a

tion,

and

,

that

was

of

it

ingly doubtful
we

can

sus¬

"Further,

free

to

of

permitted.

Hector

to

do

McNeil

anything it

can

do to

the right of representatives
each
Member
State
of
the

United Nations to collect

news

in

the territory of other Members of
the United Nations without inter¬
ference

McNeil

or

we

an

shall be concerned

opportunity for

rep¬

the confident

secure

of

ensure

resentatives of each Member State
to transmit information to other
Members of the United Nations in

information is

self

must ask ourselves most

we

United Nations.

unless

movement

world

our

carefully if, under the terms of
our
Charter, they have any right
to
claim
Membership
in
the

tional cooperation or of
peace

an

then

tain any hopes
of interna¬

this

comes

organization, that is,
perhaps, as important a test as
any, and when we discover a na¬
tion not permitting these
facilities,

exceed¬

if

continued, "when it

examination of who should or
should not be entitled to be
part

he

held

hope that it will be
received without hindrance
by the
peoples of those other Nations.
"As
red

our

morning in his pointed
and moving
speech, it is exceed¬
ingly doubtful if we can sustain
hopes of international colla¬

any

boration

discrimination,"

Mr.

free

"Inde&d,"

Mr.

mitted.

asserted.

French colleague infer¬

this

or

of

movement

News is

peace

of
a

unless

news

is

this
per¬

most perishable

tion of the

Much more testimony to the same
provided in the course of the past twelve
months.
We have now had it amply demonstrated that the
national government can not hold labor in check when con¬
economy.

general effect

ditions

are

still

was

income.

And, anyway, were not most of the war
on the advice of the Government that

such

are

time

same

keep production going.

Indeed,

Another worry

oped

concerns

the

of

Sum all this up, and we have a
all arguments in favor of the

complete refutation
system known as

"planned economy."
strated:

Government has amply demon¬
(1) that it does not understand the forces at

work in the economic

world, and is without the power
likely to take place in the early
future, and (2) that it is not able to control the various
to foresee what is most

volume of exports.

even if it knew
Of course, there really should
be no need to learn such things from experience.
The
system is impossible—and what we can rightly con-

*

dem

the

politicians and others for is their refusal

to

abandon the whole idea forthwith.

This

announcement is not to

:

j

(

ordinary circumstances this demand, they think,
Probably it. will.
tHow
soon it will do so
depends without doubt upon a number
of aspects of our
public policy.
Evidently, however,
President

does

not

regard this demand

as

for less work than

ever

ing.

i:.

ied

these

points,

and

while

I

should like to make it clear that
we

prepared

are

items

included

to
in

have

these

the

agenda,
we fell strongly—and
I think many will agree with us

nevertheless
—that

these

raise

commercial

issues

which

matters

already
by various in¬
agencies, and, there¬
fore, cannot appropriately be de¬
cided by the proposed conference
alone. In that sense, I should like,
on
behalf of my Government, to
make
a
reservation
upon
this
point."
under

are

discussion

of

the

Stock

from

Beardsley, member
Exchange, will re¬
McEnany & Co.
which date the firm

Bond,

July 31,

will

on

to

cease

be

an

exchange

member.
Interest of

the

late

Charles

D.

Draper in H. N. Whitney, Goadby
& Co. ceased as of April 3.
Interest

of

the

late

Richard

B.

Wilson in Robert
ceased

as

of

Winthrop & Co.
May 20.

With Slayton &
.(Special

LOS

to

i

Co./;Inc.

Financial

Brierre

Chronicle)

CALIF.

has

as an
offer to sell or as an offer to buy the securities herein mentioned,
offering is made only by the prospectus.

3V2% Cumulative Preferred
Shares,
Second Series [

Impression
Copies of the prospectus
in states in which the

may be obtained from the undersigned only
undersigned is qualified to act as a dealer
prospectus may legally be distributed.

in securities and in which the

F. Eberstadt

&

—

joined the

staff of Slayton &
Company, Inc.,
3277 Wilshire Boulevard.

plus accrued dividends

July 25,1947.

The

ANGELES,

Elizabeth

Price $100 per share

of course, all this is but added evidence of the
weakness of
the notion that
government ought even to consider under¬




should

agenda dealing with
particularly
Chapter II, item 4 (b) and item 5
(b) (ii) and (iii).
"My colleagues will have stud¬

$100 Par Value

certainly does not give an impression of a
national government well
informed, with a thorough under¬
standing of current economic forces, and in full command
-of the elements which
compose the economic system.
But,

supplanting natural economic forces in the direc-

I

point of detail

a

the

on

suffi¬

taking to "stabilize" employment at "high levels," trying
"to guide business
away from familiar pitfalls, or in any

on

My comment deals with the

item

before!

A Bad

comment

one

commercial' matters,

Victor Chemical Works

this

other way

have

40,000 Shares

ciently temporary to insure us against further increases
in current prices.
At the same time, however, the
President can only suggest temperance on the
part of
those who are now being required to pay higher wages

All

"I

like to make

which has not been referred to in
the excellent and extensive dis¬
cussion we have had this morn¬

NEW ISSUE

Under

must, presently taper off. ~

the

to that collection and trans¬
mission than the news itself
per¬
ishes.

rance

be construed

The

any

i

to

elements in the economy, and could not

what ought to be done.

that official Washington has devel-

enormous

enough

transmission of news; if there is
a political or
administrative hind¬

tire

savings bonds sold

funds be set aside during times of war
scarcity in order that
they might be on hand to satisfy postwar demand and, by
supplementing current income, to support postwar industry
and trade?
If official figures are to be taken at face
value,
it would appear that total
expenditures for all types of con¬
sumers' goods, both from current
earnings and from accu¬
mulated savings, are less in relation to current
earnings
than was
customary in past peace years.

not

wages

line" and at the

worried.

years, the only unusual aspect of it appears to be that indi¬
viduals are still somewhat careful how
they spend their

is

demonstrate that there is a legal
toleration of the collection and

on

economists

It

that union leaders feel it
possible to get
and other concessions from industry.
The ex¬
New York Stock Exchange
perience with the OPA during the months after the end of
Weekly Firm Changes
hostilities, and with the various other control undertakings
The New York Stock Exchange
during that period (to say nothing of war experience), made
has announced the following firm
it clear beyond any peradventure of a doubt that
government
changes:
in this country at all events
simply can not "hold the price
Sterling S.

higher

prise had no faith at all in the future.
Consumers, say
these pundits, are
spending all but 6.8% of their disposable
income.
Is this particularly unusual?
If we omit the war

<

commodity.

ternational

government-created situation in which business enter¬

current

exchange

of informa¬

They see so
many "temporary props" supporting business.
Business,
they find, is spending large amounts in capital construction
and equipment to
put itself into a position to produce effec¬
tively and efficiently in the future.
Of course, it could
hardly be otherwise in the circumstances—in the absence
of

the

it failed to do either.

Economists Still Worried
But

and

■

McNeil

Kingdom Government feels vitally
interested in this and pledges it¬

may

Take what is known

;

which did

permit the

"The United

Of course,

statisticians

freedom of information

on

access

press at a meeting of the Unite#
Council, Hector McNeil, British Delegate, questioned whether
Charter, the United Nations could accept or retain
among its members any nation
not
<$>

under its

Interesting Findings

light of all this and of much more which might be
cited, the findings of the President's Council of Economic
Advisers—that official body whose function it is to
provide

{•

debate

a

rejecting free

Nations Economic and Social

In

the President with the facts and advice

23

No Peace Without Freedom oi Press: McNeil

(Continued from first page)

|

(443)

Co. Inc.

4

THE COMMERCIAL & FINANCIAL CHRONICLE

(444)

24

security

President's Review of 1947 Economic Adjustments
(Continued from page 13)
charging less than the traffic will
bear is good business policy and
is in the public interest.
Many
firms are rationing their output

which shows
that
they could
obtain higher
prices. The so-called "gray mar¬
ket" prices are an indication that
regular suppliers are charging less
than the demand would permit.
customers

among

Moreover, a number of individual
firms and representatives of bus¬

organizations

iness

nized that their own

have recog¬
long-run in¬

sponsive to the government's re¬
peated emphasis upon the gravity
of the situation, they have widely
acknowledged
reductions

or

each

matter

been
iness

his

serious

of

..

While

the

did

downward in the

second

quarter, there can be little
doubt that the Nation-wide focus
as

an

this matter acted

important anti-inflationary
The leveling off of indus¬

force.

margins.
Many
position to follow

on

ity. The anti-trust laws must be
applied
energetically
wherever
freedom to compete is restrained
or impeded.
voluntary

of

Recommendation

price reduction and of foregoing
possible increases has been ad¬
dressed

of prices

course

not clearly turn

life of the commun¬

the business

has

attention

business associations.

country are best served by reduc¬

profit

foregoing

presented in numerous bus¬
journals and meetings of

attention

of

the

price

The obligation of
businessman
to
give
this

of

tion

of

need

price increases.

the

of

welfare

the

and

terests

the

parity expansion, or the hamper¬
ing of the entry of new firms into

primarily to businessmen
who follow a conscious price pol¬
icy, and not generally to farmers.
There

are

Most individual farmers,

for this.
like

sound and fair reasons

small business firms,
do not have it within their power
many

in the

same

as

way

large indus¬

Thursday, July 31, 1947

Wage
increases
productivity
would permit without interfering
with desirable price adjustments
and high production levels were
recognized as justifiable. But the
Report warned against an infla¬
tionary wage-price spiral.
laws.

increased

where

Since

that

time,

col¬

peaceful

lective
bargaining
widespread
wage

has
yielded
increases
in

industries, such as textiles,
rubber, steel, automobiles, electric
equipment, local transit, depart¬
ment
stores,
and
construction.
many

These
also

settlements

to

move

firms

and

these

wage

absorbed
and in

have

wages

up

industries.

tended

other

in

of

Most

increases

have

been

without price increases,
cases have been ac¬

few

a

trial producers to determine the companied by price reductions—a
.result that would have been un¬
prices for their products. Farming
in America is not organized that likely had there not been concen¬
were granted to large numbers of
The need for restraint in pric¬
trated national
attention to the
workers. Thus, in the second quar¬ way. Nevertheless, it is incumbent
ing practice which was stated in
price problem.
ter
of
1947, some progress was on farmers to follow sound pricing
the January Economic Report is
In
some
previous inflationary
made
toward averting the pro¬ principles
in
their 1 collectiveeven
more important today than
spective disparity between prices bargaining activities through co¬ periods, the effort of workers to
it was at that time. Its relevance
operative associations and in their protect their family budgets and
and mass incomes which was dis¬
is underscored by the recent re¬
to
maintain
legislative the efforts of business managers,
cussed in the Economic Report in efforts
vival of fears of inflation.
Such
January.
Any sharp increase in support of farm prices. Small bus¬ to protect the financial position of
fears threaten the process of or¬
prices
in
the
coming months iness has the same responsibilities their companies led to strikes
derly
price
adjustment.
The would
to work toward desirable price ad¬ which crippled production, added
wipe out that progress.
change in psychology has* been
to • the
inflationary condition of
The guiding principles for price justments.
unduly stimulated by such events
Though it is true that farm inadequate supply, and subjected
making outlined above apply in
as the corn crop scare and an ex¬
workers and their families to des¬
all fields of business
activity— prices have advanced even more
aggerated interpretation of the ef¬
than -industrial
prices in many perate hardships and the stock¬
fects of the coal mine wage ad- production, trade, and services—
holders of the employing corpora¬
where a firm has any range of cases, we now, after termination
justment. Ill-informed ideas
tion to heavy financial losses. The
discretion in setting its prices. As of price control, have only limited
about the new foreign-aid pro¬
important
and
long-drawn-out
pointed
out
earlier, far-seeing powers to deal with them except
posals have also been an element
through increased production and strikes in 1946 were ample warn¬
in the revived talk of inflation and pricing at the materials and manu¬
through shifts in, or control of, ing that the situation in laborin a relaxation of resistance to facturing levels is the outstanding
management relations was highly
need at the present time, in order demand. The special problem of
high prices.
explosive.
to facilitate workable adjustments agricultural prices in the second
Such developments accentuate
It was fortunate that when «the
of price to income and demand all half of this year will be dealt with
the need not only for restraint in
in later sections on the agricultural time came for the determination
along the line. Wholesalers and
price policies, but also for con¬ retailers must recognize, of course, problems and foreign economic of wage rates early this year,
tinued caution in the purchase of
both employers and workers were
j '
1.
•
that their part in the process in¬ policy.
others

in

are

a

trial prices came

materials where many prices are

of exceptional
Likewise, the cost of construc¬ disposed not to take such extreme
well as promptly re¬ tion—residential, industrial, and positions as to lead to deadlock.
The cost of living had risen sharp¬
flecting in their own prices any commercial—is of outstanding im¬
reductions
made
by their sup¬ portance.
Unless
this
cost
is ly with the end of OPA, and em¬
brought down and kept strictly in¬ ployers acknowledged the justice
pliers.
*

in prices later,

with all the losses

which that would

is

it

to refrain

far

as

bring.

as

sellers

possible from

price advances and for buyers to
resist

margins

eral
to

have

persons

that

point

price adjustment

mark

new

economic
must

everything

do-

such as
possibilities of or¬ market

derly price corrections in
economy

action

through

of

voluntary

the

individual

free terprise

a

collusion

as

a

to

conditions

vigorous

possible

of

A free-en¬

competition.
system

cannot -tolerate
in curtailment

in price,

Re-' of output, or in restriction

firms.

toward

matter of
policy, the government

promote

first half of the year was

does

executive

business

among

of

position of

buyers, we shall not have a satis¬
factory increase in the volume of

private construction and

cepting

suffer

a

crease

crucial

later in this

In

Adjustment

January

Economic Re¬
moderate wage
points where rates
the

ment

increases

at

the

inflation and kept their de¬

the cost of liv¬
substandard. The Re¬
port laid stress also on the desir¬
ing

such

within

agreed

a

practical

a

qnick settle¬
in each of

upon

early contract discussions in

the major industries.

had lagged behind

While these wage increases

or were

have

added

substantially to the buying

power

of raising the minimum
wage rate and coverage and in¬
creasing rates of unemployment
and old-age benefits under social-

ability

of these groups of workers,

they

have

wages

in

tended

the

advance

to

brackets

upper

of

CONSUMERS* PRICES

since

peak in

a

been

after

March 1947 and have
1926

PERCENT

100

=

200

200

Such

and salary structure.

wage

to

the

in

thrbugh the processes^of collective

bargaining or, where workers are
not organized, through voluntary
adjustments by employers, after
carefully weighing the specific
problems peculiar to the partionlar

circumstances.

There

[

t

of work¬
ers who are suffering hardship be¬
cause their wages are substandard
are some

groups

have risen far less than the in¬

or

in the cost of living.
The
inequities involved in these cases
ougnt to be eliminated by grant¬
ing wage increases.
crease

should

Businesses

absorb

these

increases without increasing
prices wherever possible. They
wage

in fact, reduce prices hi
where profits would still
be unnecessarily large after the
wage increase. It should be recog¬
nized/however, that in some cases
such wage increases will require
price increases or prevent price
should,

any case

reductions.
Aside from these types of wage

increases, the national welfare

re¬

quires that labor shall not insist

increases that would

wage

upon

necessitate price increases

or

fore¬

desirable

stall

price reductions.
Sound principles of wage settle¬
require that recognition be
given to the peculiar conditions of
given firms, industries, or occu¬
pations and to the current situa¬
ment

tion.

Over the long run, trends in

real

should

wages

be

based

on

general productivity trends.
Wage levels; wage adjustments,
workers'

and
are

incomes,

.

however,

not solelj^the responsibility of

management and labor.
the purchasing

in

recommended

in

Report

Action to

the

January

of

power

Economic

that

be enacted to

measures

several

eliminate

income

inequities and to restore
purchasing power of certain
underprivileged sections of the
the

population.

Specifically,

the

re¬

port urged upward revision of so¬
cial security benefit payments, an
extension of the coverage of the
Fair Labor Standards

increase

Act, and an
minimum-wage

the

in

'

level.

has

action

No

taken toward

.

4

}

thus

far

raising social

been
secur-

1935-39

PERCENT

=

I00

PERCENT
200

200

in

on

ment of the Fair Labor Standards

Action by Congress is called

Act,

individual

But

raise

18 0

180

employers

substandard

now, without
sional action.

FOOD

renewed

was

the portal-toportal pay bill.
The minimum
wage should be increased to at
least 65 cents per hour by amend¬
message

my

a

should

180

order

wa^e questions should be settled

for.

180

in

relations

recommendation

sharp rise in .the second half of 1946, rose
somewhat further in 1he first quarter of I947, and
leveled off in the second quarter.

lower.

PERCENT

industries

ity benefits or on the minimumwage subject although the latter

of ca-

WHOLESALE PRICES
reached

workable

low-income groups should also be
taken by the government. It was

strike with its-accom¬

or a

was

or

attain

sustain

trading range that

port recommended

firms

in¬

ger of

of Wage

earners,

ac¬

panying hardships. The workers
on their oart, recognized the dan¬

The Process

raising

of lower paid
whose relatively
greater need was recognized in the
first
Economic
Report.
These
increases will undoubtedly raise
the question of increases in other
compensation

of

alternatives

report.

be

will

a

the

wage

inadequate wage

the

an

present situation, and
discussed
separately

factor in the

it

This is

decline.

with

ers

in'

increase

hn

and did not confront work¬

wages

we may

for

demand

a

mands

individual

the

what

could
stabilizing

progressive business leaders in the
-to

with costs and

compatible

scoffed at

reaction

the

Yet

course.

a

the lowest

line with the financial

reasonable business incentives.

businessmen

follow

would

that prices,

principle holds

support a prosperous economy,

Beyond

idea

Nevertheless, the gen¬

must be kept down to

price increases by their sup¬

Some

or

is

reductions.

pliers.
the

as

recognized that cost in¬
creases have limited the ability of
a number of firms to make price
It

Conse¬

urgent for

trimming

volves

quickly affected by changes in the
psychology, of buyers and sellers.
To expand commitments at high
or rising prices will only increase
the dangers of creating future dis¬
orderly
movements
in
prices.
Speculative increases at this time
would insure a much sharper fall

quently,

at the vary time

when considerable wage advances

this policy.

the wage structure without

wages

1

waiting for

congres¬
The increase in liv¬

ing costs makes the 40 cents mini¬
today

mum

equivalent

to

about

^

25

cents at the time the* law

wa3

enacted..

y
160

160

CLOTHING

In view of the
!60

I 60

sion

for

rent

inadequate provi¬

control

rise.

those
140

140

40

I 40

ex¬

bolstering the incomes of
the

on

lower

and

120

I 20

I 20

RENT,

J

I

I

I

I

L

J—1

I

'

'

mamjjasondjfmamj

1946

1947

100

j

1—L

I

J

I00

F

A

M
.

M
..

-

J

#

<P

A

L

I

I

J
J

S

j

of

O

N

;0

,

J

F

L

j

i

M

A

M

1947

.1946
ALSO INCLUDES

HOUSEFURN/SHINCS, FUEL, ELECTRICITY,

ICE, ANO MISCELLANEOUS GOODS AND SERVICES
DEPARTMENT OF LABOR




1946.

I00

J

NOT SHOWN ON CHART.

SOURCE:DEPARTMENT OF LABOR

half

levels

between

L

j

first

record
^

the

profits, both be- '

fore and after taxes, increased ifi
the

OTHER THAN FARM
PRODUCTS AND FOODS

of

Business Financing

Total corporate
120

rungs

economic ladder.

Profits

SOURCE:

the

This makes still greater the

need for

100

in

tended act, this important element
in the cost of living is certain to

of ;1947
of

The

the

above

last

the

quarter

striking disparities

profits of durable-goods

industries, which existed during
part

of

have

now

the

reconversion

disappeared.

period,

Nearly all

industries enjoyed high profits in

i

4

industries and non-durable-goods

:;-

Volume 166

Number 4616

THE COMMERCIAL & FINANCIAL CHRONICLE

(445)

..:
the fourth quarter of
last year and
the first half of this
year. Profits
of
unincorporated businesses also
increased somewhat
between the
latter part of 1946
and the first
half of this
year.
For the last 6
months, total corporate
profits

after taxes
represented

about 10%

return of

a

net worth. Net
farm

on

income has continued at

a

record

level.

until

say

host

a

of

events

have

and

remote

repercussions.

must be dene amid the
and

the
of

and

the

pressures

economic

forbearance

zations,

and

the

avarice

organi¬

ical

regular meeting of the

of Directors of. the

Bank

&

Trust

July 24th, Frank K. Houston
nounced that he would

eco¬

Sales

Chem¬

Company

our

their
structure of

the

the

Board

decisions

making

within

Appoints Regional

At

illiteracy,

individuals and

many

Investors Syndicate

This

resistances, the economic wis¬

dom

Chemical Bank Trust
Official Changes

worked out their direct influences

on

pro¬

portion

of

the heavy volume of
business investment
during the
first half of 1947.
Business ex¬
penditures on new
plant
and

equipment

and

cumulation

were

on

at

inventory

ac¬

annual rate

an

of

nearly 25 billion dollars
during
this period. * This volume of
busi¬

ness

investment

financed

was

in

relinquish

to be financed
from so-called

During the

war,

corpora¬

and

large

businesses invested a
portion of
their
reserve

funds

in

short-term

securities,

with

government
view
toward

a

liquidating these

funds in the re¬
conversion' period as
they were
needed for the
purposes for which

they

had been accumulated.
the first half of

In

1947, corporations

drew

their government-secur¬
a lesser extent than

on

ity holdings to
in

1946.

(2)

Funds were secured from
the issuance of new
securities at
an

annual rate of 3 billion
dollars.

(3) Business loans increased
an

price,

managers,

annual rate of

about

1

at

billion

general

be

recognized that a
high volume of profits is
necessary
to
make provision for
the
in¬
creased

cost of buying
inventory
and capital
equipment and the de¬
creased real value of
existing re¬
serves
at
present
price levels.
Even after these
allowances

are

made, it is evident that in
cases

levels

employment
ahead.
the

business

profits

many

are

more

than adequate to
permit price

duction

or

wage

increases,

re¬

or some

combination of both.

of

in

period

results

of

these

apparent,
well

as

wait until

or

some

to

for Adjustment by
and Government

In

a

nomic

free enterprise
system, eco¬

adjustment

conditions

does

cording to
the

at

of

promulgated

authority.
terprise

not

proceed

by

system,

the

as

free

that

decisions
are

a

processes

multitude

and

flexible

indispensable

in

stems from

the

dynamic economic life
complicated and conditions
that

en¬

expressed

of

fast

and

governmental

the'Employment Act,

so

ac¬

government

Belief in

the conviction

changing

neat plan evolved

any

seat

to

to

are

We

depend first

local

revisions
economic

health and vigorous
growth.

the

basic

maladjust¬

strife,

impair the willingness of business
to
invest, or limit the ability of
to

consumers

goods

buy the volume of
services that reaches

and

the market. While the
government
should refrain from action
that
would tend to

prolong maladjust¬

ments, it must be ever ready to
perform its complementary role in

sustaining and strengthening the

activities of the war and
the fiscal and
monetary devices by
which

financed

we

introduced
our

a

economic

of war

struggle

affairs.

The

shock

stimulated the country to

full use of

our

not propose to

resources.

We do

slump back to low

productivity
ment.

that

profound upheaval in

and
At present

underemploy¬
we

in

are

the

process of seeking to find a work¬
able pattern of income and
price

relationships
but with
tion and

on a new

price level

continuing high produc¬

employment. It is gen¬
erally conceded that this new price
level will be higher than
prewar.
A large part of the
increase in

prices: since 1940 has become im¬
bedded

in

the

cost

and

income

structure of the
economy. Hence
decline to the prewar level could
be expected

only

paniment
we are

of

a

as

an

accom¬

depression.

That

all determined to
prevent.

Nonetheless,

prices should be
vised downward where
profits
excessive or where reductions
needed

to

markets.
•.

forestall
?

a

policy and perform¬

still face

double task. Since
and
transitional

a

extraordinary

stimuli will begin to

in due

wane

course, it is necessary to put in
motion adjustments in
production,

prices, and incomes

which will be

needed to prevent deficiencies in
demand and decreases
fn produc¬
tion and employment. At the
same

time,
the

it is

fiscal

ment

as

still

necessary to use
of the govern¬

powers

safeguard

a

against

in¬

which stil

der present

conditions to provide
that safeguard. While the Amer¬
ican people look forward to
relief
from the burden of
taxes, tax
duction now would add to

existing

temporarv

inflationary

oressures.

It would impede those
adjustments in the private
economy which must be made for

achieving stability in the
Such

a

are

future

policy of restraint at the

present time will enable

fiscal

policies

us

to

use

effectively if they

required

at

a

later

time

to

lend

support to the economy.
I
of the utmost
importance that

we

be

nrenared

action should

iness

to

take

prompt

action

appear
imminent.
taken at the proper

time

would help to
prevent the
downturn from
developing into a
serious deflation.

When the time comes for a re¬
laxation of fiscal
restraints, it will
be necessary to

formulate

of

gram

tax

reduction

than

to

ments

the

the

of

the

establish

Bank.

will

He

and

Vice-Chairman

utive
H.

Johnston

Bank
uary

is

the

Southeast;

Humphrey of Birming¬
Southern area;

N.

Board

since

Baxter

Jackson,

elected

was

Board and
and

Chief

Co., Farnam Building.

Joins

Ivan

Special

Capital Securities
to

The

Financial

Chronicle

OAKLAND, CALIF.—James M.
Miller has been added to the staff
of

Capital
Broadway.

Securities

Co.,

2038

<

<

Harold

Vice-President,

H.

was

Offi¬

Bank

in

Tennessee, in 1920,

elected

the

since

eleventh

surrender of said Bonds,
accompanied in the

also

Director

a

1947 and
gage

erly executed United

ican

a

of

the

United

Mr.

&

productivity, housing and

construction^and the foreign

No.

States

becomes

of

Trust

the

the

the

twelfth

Chemical

in

graduation

from

Princeton

Vice-President

in

President

has been
of

a

Uni¬

1946.

since

Director of the

1941.

He

following

a

Corn

Alumni

Chairman

of

Association

the

Graduate

He is Trustee

of Moun¬

Hospital,

The

ber of the Economic

mittee

of

the

Kimberly

Policy Com¬

American Bankers

Association, Trustee of

the Davella

Mills Foundation and the White¬
hall

Foundation, Inc.r/'

Revenue Ownership

Unifying Mort¬
manner

at said

accompanied by prop¬

Certificates in

respect o#

Company,

Wall

United States

Internal Revenue
to

by properly exe¬
Ownership Certificates in respect of the inter¬

with

July 1, 1947.

the

outstanding uncompromised First Mort¬
Five Per Cent. Thirty-Year Gold Bonds of Central Arkansas
and

Company,

together with accrued interest thereon

to

and

in¬

323 North

compa¬

Products Refining
City Investing Com¬
pany, Home Insurance Company,
City of New York Insurance Com¬
—

Internal

aforesaid should be

cluding July 24, 1947, at the principal office of St. Louis Union Trust
Company, No.
Broadway, St. Louis, Missouri, upon presentation and surrender of said

He

Company,

States

as

coupons

Eastern Railroad

and

is

detached

accruing from July 1, 1935

gage

1928,

1929

coupons

for payment of the
compromise amount due thereon.
5. The unpaid principal of all of the

Member of the Board

Directors

nies:

in

or

issue, stamped as subject to Compromise and
Adjustment Agree¬
Railway Company, should be presented at the
principal office of
Guaranty Trust Company, No. 140 Broadway, Borough of
Manhattan, City and State
of New York,
accompanied by coupons and Ownership Certificates as
aforesaid,

versity that year, and became
Assistant Cashier
in
1926, As¬
sistant

40

ments

He
joined
following his

1920

1, 1947. Said January I,

coupons appurtenant to said First Terminal and

be detached and presented for payment in the usual

Bonds of said

Bank

Company.

Bank

Interest

cuted
est

Helm

of coupon Bonds with all
appur¬

Street, Borough of Manhattan,
City and State of New York, upon
presentation and surrender of said Bonds
accompanied by all appurtenant interest
coupons maturing on and after January 1, 1936 and
accompanied

of America.

President

may

case

and after January

coupons.

versity, and of the National Board
of the Young Women's Christian

School, Inc. and the Community
Chest of Montclair. He is Trustee
of the Pension Fund and a mem¬

and in¬

on

gage

Trustee of Roose¬

a
Member of the
Board of Trust of Vanderbilt Uni¬

Association

bonds

.4. The unpaid principal of all of the
outstanding uncompromised First Mort¬
Five Per Cent Thirty Year Gold Bonds of
Stephenville North &
South Texas Railway
Company, together with accrued interest thereon to and
including July 24, 1947, at the principal office of Bank of the Manhattan

Association of Reserve

tainside

volve the agricultural outlook and

3.

Corporation, Cedar - Temple
Realty Corporation, Phelan Realty
Corporation and Chemical Safe
Deposit Company. He is a mem¬
City Bankers,
velt Hospital,

following

January 1, 1947 and July 1, 1947.
maturing January 1, 1943 to July 1, 1947, both
inclusive,
from the General and
Refunding Mortgage 5% Gold Bonds, Series A, at
fhe St. Louis Southwestern
Railway Company, at the principal office of
Chemical Bank & Trust
Company, No. 165 Broadway, in the Borough of
Manhattan,
City and State of New York, upon presentation and surrender of said

McCrory

Council.

are

maturing

the interest payable on

Company,

July 1, 1947

Bonds,

office. All Bonds

Stores Corporation, United Stores

developments
is ' still

interest coupons

pany, of New York, General Re¬
insurance Corporation, North Star
Reinsurance Corporation, Amer¬
Chicle

the

presentation and surrender of said
coupons accompanied

tenant

is

of

payment

The

of the Home Life Insurance Com¬

ber of the

immediate

He

1929.

have sharpened the evidence that

danger

the

Director of the Bank

a

National

These developments in¬

for

by duly executed
Ownership Certificates.
principal of all of the outstanding First Terminal and
Unifying Mort¬
gage Bonds of the St. Louis Southwestern
Railway Company, which ore*
due and payable,
together with accrued interest thereon to and
including July 24;
1947, at the principal office of
Guaranty Trust Company of New York, No. 140 Broad¬
way, Borough of Manhattan, City and State of New
York, upon presentation and
2.

President of the Bank in 1946. He
has been

provided

United States Internal Revenue

appointed a Vice-President in
1923, First Vice-President in 1935
was

July 14;

Southwestern Railway
subsidiary debtors, the Rail¬

Interest coupons

upon

Assistant

was

and

Railway Company,

maturing January 1, 1947 and July 1, 1947 from the Four
Per Cent. Second
Mortgage Gold Income Bond Certificates of SL Louis
Southwestern Railway
Company, at the principal office of Bankers Trust Com¬
pany, No. 16 Wall Street, in the
Borough of Manhattan, City and Stqte of New York,

Cashier of the Chemical Bank. He

and

the

1.

Nashville

as an

& South Texas

and coupons:

New York from the American

National

Railway Company,

Mortgage Five Per

Company has

way

Helm, First
elected Presi¬

dent, both effective Aug. 1.
Mr. Jackson is a graduate of
Vanderbilt University and came
to

Railway Company

1947, dismissing the reorganization
proceedings of St. Louis
Company (hereinafter called the Railway Company) and

the

of

Executive

ton

—and the time is not
yet.

aid program, ' "

&

First

President,

Chairman

He is President of the Prince¬

other

R.
Bowen and Joseph A. Leone have
become associated with H. O, Peet

Mortgage Five Per Cent. Thirty-Year Gold Bonds.
NOTICE IS HEREBY GIVEN that
pursuant to the Final Order of the District Court of*
the United
States, Eastern Division, Eastern Judicial District of
Missouri, dated

then.

ers.

us.

Chronicle

Cent Thirty Year Gold Bonds.
Central Arkansas and Eastern
Railroad Company,

from January 1935 to Jan¬
1946 and has been Chairman

the

cer

General and

the

these

inflationary

Financial

NEB.—Walter

Mortgage Gold Income Bond Certificate!,
Unifying Mortgage Bonds,
Refunding Mortgage 5% Gold Bonds, Series A.

Stephenville North

Mr.

of

pany, Cedar-Temple Realty Cor¬
poration and Phelan Realty Cor¬
poration. He is a member of the
Association of Reserve City Bank¬

prudently timed

Four Per Cent. Second

Exec

Chairman.

President

was

Vice-President in

private

recent

The

First Terminal and

First

Houston

of

the

of

-

economy
which will be
necessary for con¬

Several

to

OMAHA,

Eastern

the

St. Louis Southwestern

become

Committee, of which Percy

Vice

facilitate, rather

be

Omaha, First

To the Holders of

program

tinued high employment and
pro¬
duction. Fiscal measures such as
should

of

Two With H. O. Peet
Special

St. Louis Southwestern

of

Honorary Chairman of the Board

First

with

no one can

with

ance

Chairman

as

will

hinder, the basic adjust¬
in

National Co.

National Bank Building.

Jackson

Aug. 1st, in accord¬

on

pro¬

of improvement in our tax
system. The purpose of fiscal pol¬
to

duties

the Board

Baxter

a

gram

icy must be

active

N.

that

give aid where it is most
needed,
and that will fit into a broad
pro¬

re¬

prewar

his

downturn in bus¬

a

activity

Such

dustrial




re¬

the

basic

collapse of food prices, wage advances

How much higher than

the price level Will be,

A policy of
budget surplus and
debt redemption is imperative un¬

are

•

Harold H. Helm

economy.

ance

A.

foremost

consuming public to eliminate
reduce

Chronicle

NOTICE OF PAYMENT

and

ments that cause
industrial

is

The

for

for

ham for the

business, farmers, labor, and

the
or

for

manager

tinuation of
prosperity.
on

the

Campbell, Jr. of Lex¬

Va.,

Roosevelt

market

change
forces the
adjustment, unless we
are
willing to jeopardize the con¬

so

change

of

Harrisburg

ington,

drop in demand

other

sales

Financial

NEB.—Raymond

region; G. M. Averyt

area; M. D.

can¬

exist.

Responsibility

of

be far-

make. We

we
a

the Central

broad-visioned

as

named

oeen

just

decisions

we must

Syndicate executives.

The

Baker has become associated with

man¬

now
regional
all veteran Invest¬

to

OMAHA,

men,

are

A. C. Munderloh of Detroit has

production and
the

flationary possibilities

Business, Labor,

ors

And since it takes time for

Economic

must

other income ad¬

or

The

ager.

justments helps to determine the

dollars.
It

wage,

not

in¬

earnings
and
previously accumulated liquid
tions

President and general sales

in the decisions

sources—current

throughout the country has been
announced by Grady
Clark, Vice-

organization,

no

Special

and no branch of
government can
be absolved of
responsibilty for its
part in this process. Each of these

sighted

(1) The greater part continued

assets.

individual,

become

three ways.

ternal

No

With Nat'l Co. of Omaha

Managers

MINN. —Ap¬
pointment of six regional sales
managers
to direct activities of
Investors Syndicate's 146 offices

nomic institutions.

High corporate profits have
pro¬
vided funds for a
substantial

Jones of Davenport, Iowa, for the
Midwest; and J. E» Wilde of Salt
Lake City for the West.

MINNEAPOLIS,

an¬

25

*

Bonds accompanied
by all appurtenant interest coupons
maturing on and after
January 1, 1936 and accompanied by properly executed United States Internal
Revenue Ownership Certificates in
respect of the interest accruing from July I,
1935 to July 1, 1947.
Bonds of said issue,

stamped as subject to Compromise and Adjustment
Agree¬
Railway Company, should be presented at the principal office of
Guaranty Trust Company, No. 140 Broadway, Borough of Manhattan,
City and State
of New York,
accompanied by coupons and Ownership Certificates as
aforesaid,
ments

with

the

„

for payment of the
compromise amount due thereon.

The

holders

of all

such

Bonds

and

coupons

are

requested

to

present

the

same

Immediately for payment at the respective offices above mentioned. Interest on the
said First Terminal and
Unifying Mortgage Bonds of St. Louis Southwestern Railway
Company, First Mortgage Five Per Cent Thirty Year Bonds of
Stephenville North &
South

Texas

Bonds

of

Railway Company and First Mortgage Five Per Cent.
Thirty-Year Gold
Eastern Railroad
Company, the principal of all of
and payable, shall cease to accrue on
and after July 25, 1947.

Qentral Arkansas and

which is due

holders of Certificates of
Deposit of the Bondholders' Committees for the First
Mortgage Five Per Cent Thirty Year Gold Bonds of Stephenville North & South Texas
Railway Company and First Mortgage Five Per Cent. Thirty-Year Gold Bonds of Central
The

Arkansas and Eastern Railroad
Company, should not present such Certificates of Deposit
in due course
by said respective Committees to do sol
'
Dated: July 24, 1947.
$T
l0u|$ SOUTHWESTERN

until notified

t

RAILWAY

•.

.

■

COMPANY

...By PAUL J. LONGUA, Vice President*

26

THE COMMERCIAL &

(446)

The State of Trade and Industry

pounds, an increase of 8,144,000 pounds
stocks aggregated 4,265,000 pounds.

third quarter earnings for the steel industry as a
whole should approximate first quarter records—among the highest
in steel industry history.
This excellent condition, however, will
not be continued if steel demand, now strong, should slide off in 1948.
There is little chance, however, of any substantial drop in steel in^
dustry activity throughout the remainder of this year.
;
shipments,

steel prices, scrap markets throughout

of rising

In the face

the

Iron
when
level.
Pittsburgh, $1 at Phila¬

country showed no tendency to back down this week. "The
Age" steel scrap composite again made a new record this week
it went to $40.83 per gross ton; up 83 cents over last week's

melting advanced $1.50

No. 1 heavy

a

ton at

delphia and $3.50 at Detroit. But the biggest boosts came at

Youngs-

$5 a ton, and at Cleveland, $4 a ton. In Boston, brokers
paying $2.25 a ton more than last week while at New York
the increase was $1.50.
town,

up

were

The

94%

of

and Steel Institute

American Iron

steel

the

capacity

for

the

announced on Mon¬

operating rate of steel companies having
capacity of the industry will be 94.4% of

the

of this week

day

beginning July

week

28,

1947, as compared

93.1% one week ago, 72.0% one month ago and 89.6% one
year
ago. This represents
an increase of 1.3 points, or 1.4%
from the preceding week.

with

opperating rate is equivalent to 1,651,900 tons of
castings compared to 1,629,200 tons one week ago,

week's

steel ingots and

1,259,900 tons one month ago, and

1,579,100 tons one year ago.

ELECTRIC OUTPUT 8.7% AHEAD

OF A YEAR AGO

The amount

of electric

distributed by the electric light

energy

industry for the week ended July 26, 1947 was 4,730,229,000 kwh, according to the Edison Electric Institute.
This compares
with 4,732,434,000 kwh in the preceding week and was 8.7% in ex¬
cess of the 4,352,489,000
kwh produced in the corresponding period

and power

of last year.

LOADINGS

FREIGHT

RAILROAD

CONTINUE

BELOW 1946 FIGURES

Loading of revenue freight for the week ended July 19, 1947
919,734 cars, the Association of American Railroads an¬
nounced. While this was a decrease of 1,762 cars, or two-tenths of

totalled

the domestic

Minnesota

vacation

two-week

the

after

Bank

pointed Chairman of the Legisla-

and -inventory-taking

L. E. Shaughnessy .

Oscar M. Bergman

Committee of

dve

Minnesota

the

Group of the

beer and soft drinks.
; ^
carload traffic ex¬
jping volume at
Clothing clearance sales were instrumental in
corresponding week for
the past several years. The total loading represented an increase
Jiigh levels. Beach and sportswear were in good^femand. Men's
of 37,086 cars, or 4.2% above the same week in 1945 and showed washable cotton and tropical weight suits were popular items. Stand¬
ard brands of men's shirts were in limited supply
some parts of
an
increase of 112,773 cars, or 14% above the preceding week in
the country.
1947.
\r
The purchasing of lightweight, dark^-bblored summer
dresses
was
Coal loading amounted to 181,264 cars,, a decrease of 9,122
brisk; infants' wear volume was ;sf|ady,
Consumer
cars below the corresponding week
in 1946, but an increase of
buying of men's and women's shoes declined. ,
78,555 over the preceding week in 1947, indicating that coal
household and lawn furniture, carpenter tools, afip.d branded elec¬
production and movement is approaching the high level which
trical appliances continued to be in large demand4;ice cuts were
preceded the miners holiday.
prevalent on branded electric irons. Sales of paihi^Jt; hardware for
building and repair, and wallpaper increased. Automobile supplies
BUSINESS FAILURES RISE
sold well. Consumer apathy to notions and toilet alleles increased;
Commercial and industrial failures in the week ending July 24
leg lotion sales were substantially below last year'^ jOvel.
rose to 76, reports Dun
& Bradstreet, Inc. Up from 63 in the pre¬
Retail volume for the country in the week eh&ed Wednesday
vious week, concerns failing were six times as numerous as in the
was estimated to be from 7 to 11% above the corresponding week
corresponding week of 1946 when failures totalled 13.
of 1946. Regional estimates exceeded those of a Y|ar ago by the
Three-fourths of the failures were concentrated in manu¬
following percentages: New England, 6 to 10; Eash8 to 12; Mid¬
facturing and retail trade. The number of manufacturers fail¬
dle West and Northwest, 7 to 11; South, 3 to 7; Southwest, 4 to 8;
ing rose from 19 in the previous to 30 in the week just ended
and Pacific Coast, 5 to 9.
4SS
whereas retailers failing remained at 21. Concerns failing in
Apparel volume continued at a high level. Bailie suit dresses
construction, at 12, doubled the number reported a week ago,
and mid-season sheer dresses were reordered in goo$ volume; bathing
while concerns failing in the wholesale group, at 10, fell off 1
suits continued to find a ready market. Fall dre^sps, fur-trimmed
from last week's level. Compared with the same week in 1946

ceeded that

Manske, First National
of St. Paul, has been ap¬

R,

Investment Bankers
period...
Association
of America*
Oscar
Bergman,
Allison-Williams Co.,
RETAIL AND WHOLESALE TRADE MAINTAINS RISE
Minneapolis,
has
been
made
Retail volume in the week ended last Wednesday rose slightly
Chairman of the Municipal i Se¬
from the high level of the previous week and was moderately above
curities
Committee, and L.. :E«
that of the corresponding week a year ago. Consumer concern over
Shaughnessy, Park - Shaughnessy
the narrowing between income and the cost of living resulted in
Co., St. Paul, has been reelected
increased quality-price consciousness and a heightened tendency to
Chairman
of
the
Educational
shop around. Clearance sales of inferior merchandise- failed to attract Committee.
The new appointees
the consuming public; interest centered on mediums-priced items.
will take over their official duties
this fall. All three automatically
Food volume increased moderately over that of the previous
oecome
members of the corre¬
week. Fresh fruits and vegetables were in abundant supply and
reasonably priced.
Cold Cuts, poultry, and frozen meats sold
sponding national committees.
well; the volume of ice cream and other dairy products was high.
General duties of all three Com¬
Established brands of good quality canned foods; Evoked con¬
mittees are
to promote a high
sumer interest.
Hot weather in many areas stimulated the sale of
standard of ethics in the profes¬

corresponding week in 1946, the

below the

1%

MINN.—Stan¬

MINNEAPOLIS,
ley

Activity in the Boston wool market continued steady last week.
demand for fine combing wools was particularly heavy; prices
remained firm. .There was a noticeable absence «<of good quality
Australian and South African wools. Most woolen-mills were back

operation

Group of

ISA Comm. Chairmen

The

in

The

since June 30. A year ago

market continued to advance
during the week. A 27-year high of 39.59 cents was established
for July cotton before the contract expired on' July 24. A mod¬
erate reaction set in toward the end of the period but most future
prices continued to climb, with the broadest increases noted for
the July and October, 1948, contracts.
In the spot market, de¬
mand
was
fairly
heavy
but offerings were ^limited.
Mill
demand
was
light and orders! were mostly for future de¬
livery.
The weather in most sections was favorable; rain
was
needed in Texas and Oklahoma. The central and eastern
sections of the belt reported weevil infestation above aver¬
age; high temperatures in the South and West®&$lped to keep
the insect in check in those areas. The consumption of all cottons
as reported by the Census Bureau totaled 755,000 bales in June,
as compared with 828,000 in May* and 793,000 during June of last
year. Consumption on a daily average basis last month was esti¬
mated at 36,000 bales. This was 5.5% below the rate in May, and
slightly lower than that in June a year ago. Trading in cotton
gray goods was active; numerous sales of print cloths, broad¬
cloths, and sheetings for delivery in the first and second quarters
of 1948 were reported. Prices on all constructionsyremained firm.
Cotton prices in

(Continued from page 5)
all

Thursday, July 31, 1947

FINANCIAL CHRONICLE

-

■

■

1

watch de¬

supervise and

sion and

L

week, and in fact exceeded any

velopments
in each particular
field. Legislation enacted by Min¬
nesota, North Dakota* South Da-?
cota and Montana will be closely
watched by Mr. Manske who as¬
sisted the retiring Chairman dur¬
ing Minnesota's 1947 session, with
Mr.
Bergman keeping in
close
contact with
anything affecting
the

municipal business.
education, Mr.

In

Shaughnessy

preparing for the, University of
Minnesota's
extension
division

is

in

course

"Fundamentals of In¬

vestments," based on the

nation¬

ally-used book of the IBA. This
year's class, divided into two 18week semesters, starts Sept. 29 in
Minneapolis and Oct. 1 in St. Paul*

.

failures in

all groups increased

service

commercial

group

sharply this year except in the

where failures remained at

WHOLESALE FOOD PRICE INDEX DOWN

3.

4 CENTS IN LATEST

to

WEEK

rise, food prices turned downward tjiis
week. The Wholesale Food Price Index, compiled by Dun & BradAfter

a

of 24.6%.

included rises
in flour, wheat, oats, hams, bellies, and beans. Declines were
listed for corn, rye, beef, lard, butter, coffee, cottonseed oil,
Individual

eggs,

price

changes

during

the

week

Dun

& Bradstreet

Wholesale

Boston Sales Office
BOSTON,

active; the supply of some fabrics became
Corduroys, worsteds, and ystyon crepes were

increasingly limited.
popular fall fabrics. The demand for alk-fttaple fine combed
cotton gray goods continued to be substantial. Cutters and retailers

replenish their diminshed stocks of drills, twills, jeans,
and poplins.
Fine quality wool yarn and woolen materials were in
large demand.
' ifajsrv' ■
.
sought to

limited number of orders were

A

placed W'-ihe New York

lamp show; reflector type lamps attracted considerable
interest. Good quality dining and bedroom suites continued

buyer
to be

sought. Increased demand was evident for shellac and aluminum
nails. Small tool sales increased; the deliverieyf small motors

Food Price Index

improved.

Sfe

of the New

Stock Exchange, are

York
was

MASS.—Smith, BarT

& Co., members

ney

ing

a

hoff

open¬

sales office at 75
Street. Roland H. Schuer-

Boston

Federal

the most

potatoes, steers, hogs, and lambs.

represents
the sum total of the price per pound of 31 foods in general use.
It is not a cost-of-living index.
Its chief function is to show the
general trend of food prices at the wholesale level.
The

be large.
Textile trading

three-week

street, Inc., dropped 4 cents to stand at $6.48 on July 22 as com¬
pared with $6.52 recorded a week earlier.
The current figure com¬
pares with $5.20 on the corresponding'date a year ago, an advance

cocoa,

swing back coats, and sportswear were purchased%^vily; the wide
use of corduroy for rainwear, suits, and dresses mef popular accept¬
ance.
The demand for wool shirts, sweaters, aftct^gloves increased.
Order volume of men's and boys' heavyweight underwear continued

Smith, Barney Opens

will be the firm's represen¬

tative.

He

was

formerly

with

Weeden & Co.

-

Granbery, Marache &
To Admit Robt. de

Lord

Coppet

de Coppet, member
York Stock Exchange,
will become a partner. in the Ex¬
Robert

F.

of the New

fifrh of Granbery, Marache
52 Broadway, New York
City, on Aug. 1. Mr. de Coppet
DAILY
WHOLESALE
COMMODITY
PRICE
INDEX
MOVES sale volume rose moderately above the level of the previous week
formerly did business as an in¬
and was in moderate excess of the correspondingyweek a year ago.
SLIGHTLY HIGHER
dividual floor btt>ker.
'*•* T,:
Retail buying continued to be cautious but moi*|®l$onfident than in
Continuing the uptrend of the previous two weeks, the Daily
On July 31| Cliffbrd V. Brokaw*
previous weeks.. A preference for branded mer^gipdise was evident
Wholesale Commodity Price Index, compiled by ~ Dun & Bradstreet,
among buyers;
the buying of poor quality items was carefully jr., member of the Stock; Ex¬
Inc., moved slightly higher during the past week to close at 266.57
change, and Charles L. Cleveland
avoided. on July 22.
This represents a 1.0% increase over the 264.02 recorded
will -withdraw1 from partnership
a week earlier.
On the corresponding date a year ago the index stood
in the firm.
'
BANK CLEARINGS CLOSE TO 1946 LEVEL
W£.,,n.
The

turnover

brightened outlook of retailers was reflected in a. rapid
of merchandise in the week ended lasfWcdnesday; whole

change

& Lord,

,

,

at 223.72.

week were about on a level with a
year ago as a rise in the outside cities was offset by a .moderate
drop in the volume of New York City exchanges^wCCording to Dun
& Bradstreet, Inc. Clearings in 24 major cities wirO $12,536,001,000
The Government, on in the week ended Wednesday, July 23. This wa&;>04% below the
cash buyer of wheat previous week's total transactions and was only L6% ^above the

prices during the week fluc¬
tuated uncertainly. Deferred deliveries of wheat and corn sold at
new seasonal highs and then reacted under heavy prof it-taking and
.

Grain markets were unsettled- and

toward the end of the week.
Wednesday, withdrew from the market as a
Prices weakened slightly but the withdrawal was considered by the
trade as being only temporary. Reports indicating that the corn crop
continues to be one to three weeks late were the chief factor in the
maintenance of a heavy demand for corn futures. Country offerings
of corn in the cash market were relatively small. Cash oats were
liquidation

firm, the greater part of the strength coming from sympathy with
other grains. The domestic demand for flour was spotty; order vol¬
ume was limited to small lots for nearby shipment.
Cash lard prices
were

stocks con¬
totaled 76,904,000

slightly lower; the domestic demand was slack and

tinued to increase.

Stocks in cold storage on July 15




.

Total bank clearings this

$12,341,603,000 of

a year ago.

New York City clearings

Y/
>22,598,000 and
Sjspondihg" 1946

$7,012,031,000 of the c
cities was $5,913,403,000; this was
11% above the $5,329,572,000 of last year and 4.0% above that of a
5.6% below the

were
'

;

dropped 3.5% to

week.

Turnover in the other 23

jfp'..yV

'week ago.
Increases above

cities.

a

They were up

exceeded 20% in
35.2% in Houston, 22.6%

year ago

Minneapolis, 20.7% in Richmond, and 20.5% in

of the reporting

ft^Detroit, 20.9% in
Dallas.,

With Strauss Bros., lite*
Special

to Thk Financial

v

Chronicl* f m

!

CHICAGO, ILL.r—Jay Berksoh
has joined the staff-of -. Strauss
Bros., Inc., Board of

^

ing.-'

Trade Build¬
' ;

With P. W. Brooks Co.
Special to The financial Chronicle

PORTLAND, MAINE
Ward has become

M.

with P. W. Brooks
New York.

*

-

*

< -

•' i

~ Colby
connected

& Co., Inc. of
" ------ - •"

Volume 166

Number 4616

rjisr THE

COMMERCIAL & FINANCIAL CHRONICLE
(447)
ley tariff level of 1933.

Free International Markets
Essential to Peace and

maximum proposed reductions
carried out, the average will

(Continued from first page) "-^people, the prophets of gloom making forces, the producers of

000

claimed there were too
many peo-. products with a surplus for export
pie. But free
enterprise, inven- generally £
favor 1""— +«««« and
lower tariffs —a
tion, and free trade enable
40,- free trade for: the products they
000 000
people to live better in buy, but insist -on
protecting the

imodern

England

200

United
"at

years

States,

such

of

6,000,000

Even

in

the

have been told,
during the de¬

we

times

pressions

than

ago.

as

1837

and

1873, that
country had too many people.

this

Time

haS

the

proved

•these claims.

of

errors

The population has

multiplied many-fold, and the av¬
erage American
family today has
a
higher standard of living than
ever before.
.

Because of
free

stability

convictions that

our

markets

are

and

have

progress, we
continuous battle

•waged a
the end of

for

necessary

since

World War II for free

domestic

markets, and with the
passing of the OPA and war regu¬
lations, these free domestic mar'kets
'our

to

seem

be

grasp again.

•at home

almost

within

But free markets

not

are

enough; we need
free international
markets, and
not an international
OPA which
seems

well

its way to full de¬
under the strict, and
on

velopment

unless carefully
handled, destruc¬

tive controls of
government agen¬
cies and international
agreements
which can be the worst
forms of

monopolies

and

cartels.

ment regulated

nopolies
of

private

growth of

international

far

are

Govern¬
mo¬

destructive

more

competition

international

and

the

trade than

private monopolies.

are

Our

Opportunity

Responsibility
Free

international

needed

today both

the

and

rest

obligations

markets
for

the

of

are

ourselves

world.

Our

not confined within

are

the borders

and

in World Affairs

of

the United, States.

Transportation-wise,

in

time and

communication, the world has
shrunk
in size,
but has grown
•enormously in production, spe¬
cialization, and inter-dependence.

•We

can

longer

no

selves from
nancial
tries.
to

isolate

the economic and fi¬

conditions in other

If

we

keep

our¬

expect to do
in

peace

coun¬

part

world

the

our

and

maintain prosperous conditions at

home,
the

we must

financial

tion, trade,
problems
We
rest

related

countries.

than

In many

materials

greatly reduced.
ent

their

dependent

world

war.

raw

all

other

more

the

before the
our

conditions, produc¬

and

in

are

of

be concerned'with

the

on

we

were

instances,

have

We

.

-are

been

depend¬

on. the rest of the world for
immediate supply of
tin, alu¬

our

minum, copper, lead, zinc, paper,
and a great variety of
chemicals,
and

other

many

sary

for

products neces¬
manufacturers. We

our

produce less than one-third of our
needed sugar supply. We
import a

large part of our coffee, tea, spices,
tropical fruits, and a great variety

pf

other

goods

consumer

from

foreign countries.
On

the

other

surpluses
and

of

some

hand,

materials.

narily, we produce
consume

have

we

more

exporters

of

office

ma¬

chinery, farm machinery,; motor
vehicles, and the products of the
! oil

over

our

needs

economic

for

small surplus

consumption

product, it is a simple
law that the,-price of

product

is

depressed wholly
out of proportion to the
surplus.
Likewise when there is a
scarcity
of some desired product, the

price
is bid up all out of line to
the
percentage of the scarcity.
Conflicts of Interest and
Costly
Regulations Reduce Trade
.

As

ing

.

a

of

consequence of the work¬

these

insist

The marginal producers of
copper
insisted that w^keep the 4-cent
tariff

tariff

be

to

up

r^jnoved,

because
so high

more

jthan

the

economic

price-




users

their

products" were willing to
The wool growers insist on
a
high tariff to Jeep out cheap
foreign wool. The- woolen manu¬
facturers demand
\ a lower tariff
.

wool to

keep-down their costs
production, buf they insist on a
tariff against manufactured wool

of

products

en

Based upon the Tariff Commis¬

sion's

assumed

to

protect

them

against cheap fof&fen goods. This
list could be extended to
literally
thousands of items. As

evidence,

recently
duced

tariffs;; have been re¬
more' than 1,000 items

on

through the bilateral trade agree¬
ments.

-Wf-vS

•

Tariffs Are Not the Only Form of
International Trade Restrictions
In

addition v tct
tariffs,
countries today engage in
form of trade

regulations,

most

income,

tariffs, imports subject
might be expected to

in

to duty
increase

from

$1,000,000,000 in 1939 to
$2 8/10 billions. However,
in
imports
could
argely take place without the

about

this

increase

This

of

maze

bureaucratic

the details and costs in connection
with
foreign trade
transactions

have reduced the"-:volume
a

it would be if

freedom

to

of

for¬

minimum of what

we

Could

buy^and

reduction, if the higher

only have
sell

goods

wherever

prevails.

na¬

At

the

than

5%

of

the

U.

S.

markets,

against almost 4% in 1939 with
much lower national
It

a

income.^

proposed that specialized
agencies within the United Na¬
deal

with

these

problems.

But these agencies are moving too
slowly to avert international dif¬

Another matter that
is disturbing is the apparent regi¬
mentations and restrictions which
these

international

agencies pro¬
pose to
impose upon trade and
commerce.
It is just possible that
these agencies, in their zeal for
restriction

and

control,

will do
more harm to world
recovery than
they can possibly do good.
The
outstanding needs are a restora¬
tion of sound currencies and free

markets with the minimum of
striction and red-tape.

re¬

blocked

tainty

as

currencies

the

powerful forces in

are

restriction

tional

trade

ward

of

trade.

thrives

commitments

be

can

made

in

made.

freeing

The

the

first

interna¬

tional markets and restoring for¬

eign

sound monies

world
rials

has

that

goods?*and

mate¬

raw

need, and, in turn
desperate¬
ly in need of food, machinery, anc
we

the rest of the world is

products

many

States

has,

That

the

United

is -Capable of pro¬
ducing in greatcshrplus over our
or

domestic needs. "

trade

mitted

One of the most difficult
prob¬
lems
facing the- modern world
in its struggle for peace and se¬

curity is how to gain the
tion

of

the

various

coopera¬

countries

in

restoring the conditions necessary
for trade and
prosperity. ■/
In

addition to^tariff

already made,
rate

plated

a

broad program of

reductions

this

provide

is

The

year*.

wide range

a

reductions
contem

cuts

will

of industries
with

consumers

ample supply of goods in
many lines at lower prices. Tariff
cutting power
the Presi
dent under the Trade
Agreements
more

M^iven!

Act, which enables him
iff rates

much

as

as

to cut tar

50% without
up

1948.

entered

Agreements

to Jan. 12
into

under this Act may run for three

(3)

years.

.

The State

cuts to

Department has tariff
offer 18 foreign countries

in

exchange for concessions, which
a reduction of
tariffs, the
easing of import Quotas and other
include

controls.

If and when these tariff

reductions

States
since

are

carried out, United

tariffs will

1920.'

Tariff

be

the

lowest

the

restoration

of

to

find

their

values

with

part of the governments and

the

peoples

countries
and

of

to

the

end

respective

their

inflation

currency manipulation
No amount of gifts, free

credit

or

will

tac¬

food,

restore

sound eco¬
nomic and financial conditions in

country

a

that

does

be

mainly to the fact that inter¬
trade, long - maintained,
already brought about such a
of

als, and such
the

several

the

a

only
changes

that

Proceeds

closely. It

very

over

period

a

of

not

have

a

protection for its gold
supply,
maintain prices and
employment,
it is on the road to a
closed and

raw

materials, workmanship, a
credit, and some good sales¬

to start the outflow of goods
the world's markets, and the

to

inflow

of

the

goods

needs with free

example

of
Switzerland.
a

markets.

such

gold

and

it

A good

country is
Switzerland imports
large part of the raw materials

for

a

her

manufacturing industries
consumers' goods.
But she

and

has

will

a

to

maintain

sound

She has skilled workmen,

money.

her quality

and

products are the
of many other countries—for
example: Swiss watches, against

envy

which

iff.

we

have raised

Switzerland

will

a

high tar¬

never

need

to ask the world for

a redistribu¬
tion of gold if she can have access
to free markets.
No costly regu¬

lation of

ments,
ments

foreign trade, gold

or
can

bilateral

trade

move¬

agree¬

provide a fraction
of the efficiency in
balancing in¬
ever

ternational debits and credits, and
adjusting prices, and regulating
the volume of foreign commerce
the costless free adjustments in
free markets so well described
by
as

cuts

already
to about

F. W.

below the Smoot-Haw-

"So

Taussig:
insignificant

the

ordi¬

of

Incorporated in 1924, the

the

and

Service

com¬

succeeded to a business orig¬
inally founded in 1869.
Subsid
iaries wholly
owned 4 by Public

the British Empire countries
have learned better from

should

Co.

of

Colorado

include:

Colorado-Wyoming Gas Co., The
& Clear Lakes
Co., Chey¬

the lessons of

Green

take

enne

history. We should
leadership in practicing
policies, and the

the

Light, Fuel & Power Co. and
The Pueblo Gas & Fuel Co.
The

economic

because
self-interest.

of

their

and subsidiaries supply
electricity .and
gas
within
trc
State of Colorado, serving a popu¬

company

our
own

,

lation

1

Principles
Taussig, Ch.
—(3d

of

Economics

33,

Vol.

1,

by

pp.

F.

W,

Pro

ed.).

of

forma

460-461

revenues

March

Illinois Dealers Hold
ROCKFORD, ILL.—The Illinois
Securities

Dealers

their

Miss. Power Co. Bond:

Association

monthly

Halsey, Stuart & Co., Inc., on
July 30 offered to the public $2,500,000 Mississippi Power Co. first
mortgage bonds, 2%% series, due
Aug. 1, 1977, at 101% and accrued

directors

meeting, combined with an outing
Mauh-Nauh-Tee-See Coun¬

at the

try Club at Rockford, Illinois, on
July 17, 1947. The Rockford Se¬
curity Dealers Association, through
its Vice

interest.
of

had extended the invitation to the

officers, directors and chairman of
the standing. committees of the
Securities

Dealers

following

were

Hughes of A. R. Hughes
the "golf trophy."

of

permanent

or

acquisition

improvements,

ex¬

1949

for

the

construction

or

ac¬

quisition of property additions.

*

The new bonds will be redeem¬
able
at
prices
ranging
from

National

Securities & Research Corp.

are

$10,336,000 during 1947, 1948 and

L. Shillinglaw of ShillBolger & Co. won the
"consolation golf trophy."

inglaw,

Kuechle

proceeds

in part for expenditures made fo:
such purposes. The company plans
expenditures
of
approximately

trophy."*"'

H.

sale

100.269.

tensions and additions to its prop¬
erty or to reimburse its treasury

won

G.

the award

won

competitive

for the construction

awarded

David

M.

at

from, the sale o:
proposed to be used
by Mississippi Power to provide
a
portion of the funds require!

Richard King of King,
Olson,
Surprise & Co. won the "attend¬
ance

bid of

the bonds

Asso¬

of

R.

& Co.

a

The firm

bonds

Net

ciation.
The

the

on

President, Boyd J. Easton,

Illinois

for the 12 months ended

31,

Halsey, Stuart Offers

Meeting and Quling
held

approximately 740,000.
consolidated operating

1947, totaled $26,469,708, and net income $4,707,729.

105 V4%

won

to par and also at special

the "kibitzer prize" for outstand¬

redemption

ing ability

101%

as

a

prices
scaled
from
par;
in both instances
plus accrued interest.

heckler.

Members of the Illinois Secur¬
ities

Dealers Association

who

at¬

;

tended the

all-day outing and the
banquet given at the Mauh-Nauh-

Tee-See

Club

House

were

F.

David

L.

Shillinglaw,

Boyd

to

The

company, a
Commonwealth

the

subsidiary
&

called "Southern

in the State of

J.

Group," operates
Mississippi and is

engaged

in

the

Easton, Owen Van Camp, M. G. H.

purchase

of

electric

Kuechle, Harry A. Trees, Robert

its

distribution

Strauss,

in

139

and

A.

Henry
R.

Rockford

D.

MacFarlane,

Hughes.

were:

Conrads,

the

and

Security Dealers Asso¬

ciation members who
ent

Among

were

King,

and Albert E.

Surprise.

generation

and

energy

sale

at

and

and

retail

communities, incorporated

unincorporated,

as

well

as

in

rural areas,

the sale at wholesale

of

pres¬

Arthur Anderson, Paul

Richard

of

Southern

Corp. (Del.) and one of the com¬
panies
in
Commonwealth's
so-

S.

Yantis, President, John F. Detmer,
Secretary,
and
the
following:

energy

electric

filiated

Richard

Olson, John Ralston, Carl Starr*
are

sale

pany

A.

men

the

stock.

regimented economy — economic
and industrial
decay and decline
By this time, the United States

to

little

from

Capitalization of the company
adjusted to reflect this financing
consists of $47,000,000 of funded
debt, 160,000 -shares of 4V4% cu¬
mulative
preferred
stock,
and
875,000 shares of $20 par common

several

When a country starts
regulat¬
ing its trade to provide artificial

country with

return to sound money needs
only

re¬

pleted by 1951.

prizes:

determination

series,

accrued dividends.

;o

years."1

A

a

5%

at

finance a $47,000,000 construc¬
tion program expected to be com¬

great
economic
that a large move¬

of specie takes
place; and
then it is
commonly distrib¬

uted

and

1947,

share for

per

remaining 97,801 shares will be
applied together with other funds

their

when
occur

7%, 6%

spectively, plus

range of prices in

exchanges balance
is

:;he

precious met¬

countries,

1,

$110, $106 and $107

national
has

28.
shares

issue, 62,199

Dortion of old preferred stock will
redeemed on Oct.

.

ordinary flow is

will to return to sound
money.

made reduce the
average

one-third

the

reference to gold in free competi¬
tion and with a determination on

tics.

Rebuilding Conditions for Free
Foreign Markets

is

through a free gold
where monies are per¬

market,

which

.

total

company's

those countries
share the gains from international
trade.
The
comparative
smallness of the
due

July

the

7%, 6% and 5% preferred stocks
exchange such stock, on or be¬
fore Aug. 8, 1947 for new
shares
on a
one-for-one basis, plus cash
adjustments.
The
unexchanged

less

or

jointly headed an in¬
banking group which
July 30 at $100 per

no

for¬

a
certainty as to the date of
payment and the value of the pay¬

essential

greater

Boet-

Bosworth, Sulli¬

being offered subject to prior
rights of holders of the

Interna¬

where

with

ment when it is

the

Corp.,

are

also the variations in the
purchas¬
ing power of gold in different

example

exchange
rates,
currencies,
and uncer¬
to the future values of

Of

determines not only the interna¬
tional distribution of
specie, but

to

on

Market

on

Boston

hare plus accrued
dividends from
June 1, 1947, a new issue of
160,000 shares
of
4y4% cumulative
preferred stock, $100
par value, of
Public Service
Company of Colo- *
rado, awarded to the group at
competitive bidding on

sorts of
disturbing causes, is the
underlying persistent force which

rest of the world will follow

Sound Money

offered

ports. The influence of the quan¬
tity of gold on prices, slow-mov¬
ing as it is, and subject to all

extent

Co.

vestment

this

countries and

&

van

value of exports and im¬

money

First

tcher & Co. and

especially the equalization of the

sound

Controlled

The

the

theory it is im¬
possible to explain the
facts, and

even

country.

some

pooh-poohed

theory of the equalization

Yet without

ment

own

dealings, that

have

imports and exports
through
changes in international prices.

various

parts of the world, including our

complexity of

cf

already

than

before; /The rest of the

whole

being

goods are wanted. To¬
day this freedoriTis needed more
ever

Pfd. Placed

international
writers

ficulties

and
depression
threatened from

27

one

•ublic Service of Colo.

distribution

is

tions

gold from

country to another, so likely to
be disguised
by eddies and cross

.

expectations,
foreign
goods might supply a little more

quotas

regimentations and restrictions in
international trade, heaped upon

eign trade to

tariff

some

subsidies, and currency value jug¬
gling to regulate imports and ex¬
ports.

national

with another reduction of 50%

income

prod¬

on

com¬

of

pro¬

the prices of
copper were
that the raw material
costs forced
the price of their- finished
of

These

ialized products in these groups.

peak

of

whereas: J the fabricators
copper demanded that the 4-

pay.

pro¬

metals,
farm
products, wool, cotton, liquors,
sugar,
flax,
wood,
chemicals,
glassware, tobacco, fishery prod¬
ucts, silk and rayon goods, and a
whole catalog of individual spec¬

tional

costs

duction,

ucts

on

are

include

below ..their

prices

be

commodities

reductions

copper^because the re¬
this tariff, they said,
bring infqreign copper at
of

would

cent

of

posed exceeds 3,000.

on

moval

of

list

tariff

modities

protec¬

on

hold

Congressional action
a

in any one

that

-

order? tb

up their
prices above therworld prices. It
is interesting to dbserve how our
enlightened self-interest works.

and

we

needs

in

affect

of

industry.
cWhen we,have

tion

Ordi¬

wheat, cotton, and a
variety of canned products.

great
We are

domestic

goods

than

prod¬

own

But the producers of prod¬
without a^r surplus for our

ucts.

ucts

tariff

manufactured

raw

home market for their

The
which

nary movements of

currents due to the

are

two-thirds below that level.

Prosperity

;

When the

electric

to

a

non-af¬

company

and six

rural cooperative associations and,

| incident
|

to its electric business,

the sale of appliances.

28

THE COMMERCIAL & FINANCIAL CHRONICLE

(448)

tion

Debt,

ketable

and

(In billions of dollars)
Mar. 1,

Jan. 1-

Mar. 1-

a
very small part of total
maturities during the period, were
retired
in
full.
About
three-

only

1946-

Dec. 31, June 30, June 30

Source of funds &

Funds

able debt:

cash

of

tExc.

in¬

cash

over

come

2.1

1.4

+1.7

22.5

*6.7

*4.6

§1.6

outgo

tNet cash sales of
nonmarketable
debt
Draft

Fund

23.2

Total

Change

in

24.1

amounted to $20 billions. Matured
certificates and bills not redeemed

31.1

7.9

refunded into like securities.

were

gross

direct debt:
-23.2

Marketable debt__

llOther

+

4.4

+

March

1.8
8.3

1,

w/

not

than

er

tl}iffers

discount
of

31.1

1.2

§The
$0.2

of

actual

the

decline
The

represents

tional

adjustments

the

of

$1.8

balance

fund

Deposit

balance

of

$1.6

of

billions

addi¬

principally
the general

to

transaction

the

to

was

billions

certain

consisting

due

gain

a

the

in

the payment of the United
contribution
to
the
International

States'

Monetary Fund,

and

loss of $0.4 billions

a

reflecting

adjustments

nature

data.

of

liThis
of

increase

securities

debt

in

for

due

to

preliminary

reflects

issuance

noncash

some

items,

which

penditures
nanced

by

gations

and

the

in

cash

issuance

hence

of

;

shown

fi¬

obli¬
public

gross

*\!

the

in

ex¬

are

Treasury

the

affect

debt.

As

budget

outgo,

preceding

table and the chart, debt redemp¬
tions during the first six months
of

1947

were

made

possible prin¬
cipally by an excess of current
cash income over cash outgo which
supplied funds for more than half
of

retirement

the

debt

the

prove
came

budget
and
an

source of

5.3

2.1

.8

resulted

in

an

excess

of

funds

in¬

cash

over cash outgo of over $5
billions, but for the second quarter
of 1947 the cash outgo exceeded
come

income.

that the

so

classes,

sizable

a

maturities

shown.

was

1,

1946-June 30,

Banks

—23.2

—12.8

—4.6

5.3

Other

Banks

_w

+ 5.1

sale__„

or

—

—

—23.2

change

—18.6

Total

—5.8

.7

—

.7

+

tAmounts

ment.

continuously

represent

shown

Total

7.9

____

2.9

—

sale__

or

basis

on

securities.

par

data

of

-

-

value

of

in

Treasury

of U. S. Government

-

'<

*' '

*

'

-

the

the

in

shown

As

preceding

chart

the

nearly

table,

in

and

decline in debt reflected

entire

a

issues—

shortrterm

in

decrease,

bills, certificates, and notes. Since
cash
retirements
were
heavily
concentrated in short-term issues,
which

held

are

mostly

was

in the credit

by- the
retirement

the

banking- system,
program

significant factor

a

picture. .*:•

—

.5

+

Net

purchase

7.9

distribution of

the

Changes in

influenced primarily by the

S.

U.

-6

'

+

—1.5

—6.6

5.5

—8.8

—

—

6.9

+ 5.6

—22.6

—1.0

—

Commercial

program.

the

retirement

prised

,

—

-

1.3

+1.3
—7.5

—23.6

com¬

rities,
years,-

the
sues
-

proportion of longer-term is¬
remained about unchanged-

From

February through Decem¬

1946

cluded

than

other

and

serve

transactions

market

investors

commercial

banks

Mutual

savings banks and insur¬
companies made substantial
purchases while Federal agen¬

ance

accounted for

cies

accounts

trust

and

showed

issues and in -substantial net sales. Marketable
addition sold substantial amounts issues held for these accounts were
of securities in the market.
Fed¬ sold in the market and were
eral Reserve holdings showed a
replaced by special issues. Corpo¬
not quite offset re¬
Holdings of nonbank
investors also declined; reductions
retirement

the

program

banks,

30

'.
*

\

large

resulted

duction

the

in

of total

debt

was

an
equal re¬
deposits. Where
,

held

by

nonbank

which

was

portance with the creation of new
credit, resulted from, the use of
war

loan, deposits

to retire non-

bank held debt.
In

the

'

the other hand,

the

tors-offset

ceased

and - privately

to

increase.

sion was'at a slower

rate and the
loan de¬

further reduction in war

posits was very small.
out

circulation

outside

banks

Retirement

current budget surplus

of

by: commercial banks
the same time tended to reduce

debt
at

of

held

accompanying chart.
deposits
at commercial

Total

banks,

are

slight de*

held deposits
Loan expan¬

private accounts. Fluctuations in
deposits at banks and in currency
shown in the

;;

the expansive fac¬
contractive; total

deposits shqwed: only a
crease

•:

first of half of 1947, on

shifted deposits from Treasury to

in

im¬

equal

nearly

of

shift,

This

account.

private

to

United

including

deposits and, as shown in the pre¬
ceding table, served to offset the
States remaining gain in privately held

deposits but exclud¬ deposits from other sources.
interbank balances, declined
Effect on Bank Reserves
•
by $12.3 billions in the period
The effect of the retirement pro¬
from February through Decem¬
ber 1946, but by only an addi¬ gram on bank reserves was con¬
tional $1.6 billion during the first ditioned by the distribution of
six months of 1947. As shown in holdings of maturing issues among
Government

ing

BANK DEPOSITS AND CURRENCY

insurancb companies, and

mutual

agencies
30

a

through bank loan expansion, and
a shift of.'deposits from Treasury

rations, individuals, and others as
a group bought on balance. Bonds
were
purchased
by commercial

supplied

INCOME AND OUTGO OF THE U. S. TREASURY

ments

in¬

but

purchases,

net

some

'of

Federal Re¬

these fell far short of retirements.

they

did

because

1947.,, The

30,

the retired

demptions.

total -deposits

importance of intermediate matu¬

net

slight decline; open market pur¬

in

r

relative investors, redemptions resulted in
no
change in total deposits; the
those within one to five use of accumulated war loan de¬
rose
considerably, while posits to retire such debt merely

April

by

program

one-third of total
declined to. one-fourth

over

holdings,

equal to the average an-*
during the war pe¬
riod.
The growth
of privately,
held deposits reflected both the
creation
of new credit, largely
nual increase

holdings, the average part of the public debt which was
maturity composition of govern¬ retired was held by the banking
ment security portfolios at com-; system.
To the extent that the
mercial banks lengthened some-' public ■ debt, retired was held by
what; issues due or callable in commercial banks or Federal Re¬
serve
one year, which at the beginning
Banks,
redemption
pay¬

largest decline

holdings;

securities.

Because of the drastic decline in

of

annual rate

December was at an

—2.4

—22.3

The growth of $9.6
February through

from

billions

estimated in part on the basis of estimated changes in holdings
basis of data in Treasury Survey of Ownership

are

Government

the other hand, added to
potentially effective purchasing
its, on

high levels.

-6

short-term

showed the

chases

4.0

—31.1

1

change__

NOTE—Figures
of

The
depos¬

nearly
—31.1

_1

or sale

stream.

Privately held deposits contin¬
to expand in
1946 to new

—3.0

4.9

—

—15.7

—

money

in privately held

power.

of all member banks and in part on the

ber

half of

—

active

ued

—2.0

1.1

—

__

redemption

Total

:

,

Changes in Ownership of Debt

were

change

Cash

April

until

Payments to commercial banks are

estimated

Survey of Ownership

in

redemption

purchase

—

of

significance

posits from $24 billions at the end
of February 1946 to less than one
billion at the close of June 1947,
reflected the wiping out of funds,
most of which had been obtained

—5.1

—18.1

economic

deposit changes during the past
year and a half lies not in the de¬
crease of total deposits but in the
further
growth of
deposits of
businesses and individuals.
The
decline in Treasury war loan de¬

increase

Investors

—17.4

.5

+

much slower rate.

a

The

the

Fed. Res.

Total

Change—

at

by Treasury borrowing in excess
of needs and had never entered

1947

total

holdings of issues retired, at end of month
or
latest
date available preceding
retire¬

under

CASH

shorter maturity

decline in bank holdings of these

Total, Mar. 1, 1946-June 30, 1947:

bills outstanding

weeks

outstanding

banks

important

Net

1.3

5.7

1947, when the retirement of part of week¬
ly maturities was begun, and there were
$15.8 billions outstanding on June 30, 1947.

retirement

as

made

There were $17 billions of

$90 billions.

to

be¬

increasingly

banks

purchases but, due
passage
of
issues
into

the

of U. S. Government Marketable Public Securities,

redemption

purchase

Total

.2

1.1

9.1

Treasury

13

every

im¬

acquired in the Victory Loan were
depleted. Seasonally high tax re¬
ceipts in the first quarter of 1947

cash

2.3

8.5

4.3

.2

8.8

of

total

to

debt retirement

the reserve - posi¬

on

and Type of

Cash
Net

19.1

15.7

___u

surplus

continued

current

other de¬

to

-Banking System-

2.9

during this period. Owing to holdings of U. S. Government se¬
curities since the spring of 1946

declining expenditures and a, high
level of tax receipts, the position
of

some¬

re¬

debt
amounted to only $4.9 billions,
but the offsetting credit creation
due to the expansion of private
loans and investments was also
held

bank

of

tirement

group.

market

some

Commercial

ipaturities during the period amounted

bills

marketable

of

this

increased

commercial

years,

2.3

11.4

expendi¬

These noncash

included. in

are

but not

The effect of these and

Cash

banks—

•The

tures, including transfers to trust accounts,
and international securities.

in

callable in from

or

to five years

one

group con¬

as a

government securi¬
ties, but less continuously and for
the six-month period as a whole
in substantially smaller amounts.

—

1.0

6.6

___1-

matures

in

with

connection

Securities due

payments

tinued to sell

Res.

holders

bill

net

issues

the later period, the

During

commer¬

cial

the Postal

to

Federal

figure

shown

of

issues

and

from

were

considerable

in

government securities.

than

other

(In billions of dollars)

tTo other

and

bonds

one

year, since both cash retirement
of matured issues and market sales

cash,

Banks

tTo

Corporation,

billions.

cash

maturing in less than

offset

was

the creation of new de¬
posits resulting from a rapid ex¬
pansion of commercial bank loans
and some increase in investments

Jan. 1-June 30,1947:

savings

and

bonds

special

System

Insurance

in

total—

tTo Fed.

forces leave

armed

inclusion

Savings

through December 1946 by $18.6
billions, or $5.8 billions more than
the decline in holdings due to

in issues

of

debt

part by

March 1-Dec. 31,1946:

15.8

Paid

change in nonmarketable
in lower part of table

savings

on

and of

February

from

held

it

but

security holdings of com¬
mercial banks is estimated at $22.6
bilLons.
The decline was largely

of commercial

declined

March

'31.1

15.8

principally because of exclusion of accrued
notes

beginning of the

tion

Notes Bds.

50.2

34.0

bills—

Into

surplus.

from

cates

*17.0

Into certifies

issues shown

public

banks

holdings

Changes in Ownership

Refunded:

also

cash

the

occurred

Security

Period

statement. Bud¬
include noncash ex¬
penditures,
and
budget receipts exclude
certain
social security employment taxes,
so that the budget surplus is usually small¬
expenditures

bank
was

cash

over

the budget surplus

shown in the daily Treasury

get

Bills

80.9

Matured

income

cash

equal

the

retirement of
$17.4 billions
the major factor of contrac¬
during the earlier period,

the following table,

a

re¬

by
commercial
mostly in 194-3.

securities

banks

Certifi-

Total

♦

of

excess

does

in

tirement program to June 30, 1947,
the total decline in U. S. Govern¬

Govern¬

S.

U.

of

(In billions of dollars)

-21.0

0.9

-2(^1

.

•Estimated.

tThe

ment

1947

30,

1946-June

'

outgo

sales

Market

velopments

Government Marketable Public Securities,

2.6

debt__

Total

States

Retirement and Refunding of United

—31.1

7.9

Nonmarketable

public; issues

discussed

ment

commercial banks

bills

tirements of certificates and

bal¬

etc.

ance,

0.3

+

Treasury

on

Gen'l

is

under the retire¬ what. A small
amount of sales
ment
program.
These
market and the
passage of issues into the
fourths
of
maturing
Treasury sales, which were largely for the
shorter
maturity
classification
notes were paid in cash and the
purpose
of replenishing reserve
were more
than offset by issues
remainder was refunded into cer¬
funds,
were
mostly
absorbed
moving down into this group from
tificates. Thus, nearly $11 billions
through
Federal
Reserve
pur¬
the over-five-year range.
In the
of total cash payments represented chases, largely of certificates and
longer maturity groups, compris¬
retirements of maturing Treasury bills.
During the first half of 1947
ing securities callable in over five
notes and bonds, while cash re¬

1947

1947

1946

change in debt
for
retire¬
ment of market¬

redeemed for

was

From

in small part by
market purchases.
offset only

were

cash, in addition to $1.2 billions
of Treasury bills. Maturing Treas¬
ury
bonds, which accounted for

1947

1, 1946-June 30,

Debt, March

amount

of this

Retirement of Mar¬
Changes in Gross

for

Funds

than

bills,
from
February
1946 through June 1947 amounted
to $64 billions.
As shown in the
following table, nearly $30 billions

banks.
of

other

Treasury

subsequently in main part to re¬
tire short-term issues held by the

Sources

maturities,

Total

banks

of

later section of this article.

Federal Reserve Analyses Debt Retirement
(Continued from page 18)

Thursday, July 31, 1947

savings banks and were
primarily
by
Federal
and trust accounts and

by corporations.

During the first six months of
market transactions by in¬

1947
25

^25

J

CASH OUTCO
.

banks

\

20

20

/

:

•

resulted in

some

;

cline

on

balance

commercial

Banks

Reserve

Federal

or

holdings which

<

16

than

other

vestors

increase in their

continued to de¬
due to debt re¬

15

<

V

f

10

-

/

N

A.

rev

tirement.

:

and

/

•

10

CASH INCONE

/
/

ul"
/V

-

-

,
.

.

ExaESS OF CASH

J.

:

.

0WT0O

/

-

j

were

\

cent

V

;

...

:
-10

:7
•16

►15
1939

I9401

1942

1943

1944

1945

1946

1947

Treasury Department data.

Cash income and outgo data do not
agree with budgetary figures, as shown in the Daily Treasury State¬
ment; for explanation of .the differences see Treasury Bulletin for
February, 1939. Latest figures, for second quarter of 1947, are partly
estimated by

Federal..Reserve;,




and Federal
accounts con¬
to show net sales, which
to

-

purchase

and trust

heavily concentrated in re¬
months.

The

other

groups

corporations,
purchased
heavily in the market during the
first quarter of the year but prob¬
ably made net sales during' the
second quarter.
Changes in nonmarketable debt during both pe¬
riods included reductions in tax
notes held by corporations and a
gradual increase'in savings bonds
largely

,

HO

»4l

tinued

tinued
t

>

EX CESS OF CA SH INCOME

;

insurance

agencies

'

J

savings banks
companies
con¬

Mutual

outstanding.

,

The7 debt

resulted^in,

a

:

; 1042-

f944' +•.i

*•••. »* 1949 v-.•

•

Figures- are. partly estimated..: ,Deposits are for all .banks in
United States.
Demand deposits adjusted, exclude U. S. Government ■«
and interbank deposits and items in process of collection;
Time de..

posits include .deposits .in the

"

Changes in Deposits

1940

...

PostaL Savings System and in mutual

.

retirement-program
substantial reduction)

ures

for

i947

are

preliminary.

Latest figures are for May,1947.

Volume 166

Number 4616

THE COMMERCIAL & FINANCIAL
CHRONICLE

Federal Reserve Banks, commer¬
cial banks, and nonbank inves¬

ments.

tors, and by the

quired

of funds.

source

In

general the effect was to
ercise
some
drain
on
bank

are

ex¬

subject

to

require¬ cates fluctuated slightly in accord¬
Hence, they added to re¬ ance with temporary variations in
reserve

reserves.

At the

the

time the shift from

same

reserve

position of banks and

effect

the

on

banks.
level

the

effect

of

required
Retirement

debt

out

plus

tended

of

were

reserves

and

slight.

budget

13%

of

the

of

end

deposits held

and businesses.

April

this

1947

By

ratio

had increased to 18%.

sur¬

In the

privately

with

of the retirement

course

program

deposits and to lower re¬
quired reserves. The bulk of the
'redemption
payments,
however,

commercial

drain

a.

banks

the

Treasury account, ties—that is, in
Treasury bonds—

supply of

offered

in

the

securities

new

market

by

variations in nonbank demand.

their

on

reserves

from

serves

other

re¬

This

sources.

deposits;
deposits did not ment
securities, and bills and cer¬
reserves because tificates
were
purchased in the
under
wartime
legislation war market
by the Reserve System in
loan deposits were exempted from
accordance
with
the
policy of
reserve requirements.
The provi¬
maintaining yields on government
sion for exempting warloan de¬
securities
at
established
levels.
posits from reserve requirements These market
purchases by the
expired on July 1, but such de¬ Federal Reserve
for the period as
posits at that time had been re¬ a whole came
reduction in these

lower

required

duced to below $1 billion.

Never¬
theless, retirement of debt held
by commercial banks exerted some
'pressures upon bank reserves as
a
result of the shifting of funds
between

individual

which

banks

accompanied the retirement proc¬
In recent

ess.

calls

on

been

timed

months, moreover,
deposits have

loan

war

so

exert

to

as

some

corpo¬

and the next

largest

in

was

certificates.

y e a r

of

effects

the

greatest

held

debt

table, total
Federal -"Reserve

of

retirement

from

1946

February

June 1947, amounted to
$6 billions and resulted in

through
over

direct drain

a

of

reserves

commercial bank

on

Since

amount.

this

April of this year such retirement
has been given special emphasis
through

a

in

sharp decline in bond yields

the

spring of 1946

caused

was

by heavy bank and nonbank de¬
mand.

Purchases

of

bonds

were

longer-term issues, especially

in view of the premiums that be¬
came available as these issues
ap¬

proached maturity while the shortterm

interest

tained at
of

a

rates

rates

low level.

a

main¬

were

Anticipation

further decline in long-term
was also a factor in encour¬

one-

Commercial

balances to deposits held by
and businesses which

individuals
Factors

and

Expansion

in

Contraction

of

Deposits at Commercial Banks

(In billions of

,

dollars)

in

1946

deposits—

June 30, June 30,
1947
1947

Retirem't of U. S,
Govt, securit's—

Held by
Banks

Reserve

increased demand for

banks

over,

term

loans,

obtained

more¬

additional

through the sale of

reserves

an

short-

government

securities.
Ac¬
cordingly, commercial bank sales
of

securities

from

February
of

1946

to

were

recover

funds lost from the retirement of
Federal Reserve held debt, but

also to form the basis for

Although

large

ex¬

an

expansion

reserves

of

pere readily

supplied through Federal Reserve

purchases,

some

remained.

The

mercial

banks

tightening effect
pressure

sell

to

on

com¬

short-term

securities to obtain reserves

some¬

what reduced their inclination to

rose.

i Held by commer¬

cial

securs,

to

6.6

12.8

"2.9

15.7

'

banks—™

Salds of U. S. Govt,

2.0

18.1

5.5

23.6

and other invest-

1 com¬

of

meihts

5.4

r'»,

2.6

8.0

.4

banks—

mercial

•Othjpr factors, net

1.3

1.7

3.9

9.7

—1.6

—13.9

—21.9

—1.6

—23.5

__—

in deposits,

totbl

Private

5.8

—12.3

Total

Changes

'

purchasing
the market.

ing table, funds thus obtained fell

substantially short of the loss of
reserves

due to

+

+

Federal

Reserve

^Includes

among

5.9

+ 1.0

2.7

+
+
■

3.7
«•«

other

factors, changes

currency',,in' circulation; bank capital, and
Treasury deposits with Federal Reserve
Banks.

in

1946, Treasury bond
again became subject to

yields

downward

pressure

tinued into 1947.
bonds

ury

by

which

con¬

Sales of Treas¬

corporations

de¬

clined, and the supply of new cor¬
porate issues being offered de¬
creased

Reserve

Treasury
Banks.

NOTE—Factors

pansion

are

of

deposits

with Fed-

contraction

and

partly estimated,*




ex¬
-

be

an

excess

cash

over

than

outgo
$5 billions, which will

larger amounts

early

The

debt.

made

was

ommendation.
if

there

rise in

rates.

money

tightening
to

was

certificate

rate

as

might well be less
be

an

attitude.

commercial

cautious

banks

attitude

continued

toward

a

invest¬

longer-term Treasury is¬
but
during
more
recent

months

there

has

again

been

an

and

other

factors

encouraged
banks to lengthen their portfolios.
As

weeks

stricted

slightly.
will

the

bonds

Further

depend

on

prices
have

of

re¬

declined

developments

commercial

bank

reduced

in

the

of the year.

course

Such funds

become available

as

will be concentrated

largely in the

ally

high tax
the Treasury.
will

ter

be

of

available
or

1948;

season¬

receipts flow into
Little or no.funds
in

the

second

in the second quar¬

but

there

large

are

Total maturities other than bills

during

the

fiscal

to

year

1948

will

$36.6 billions, of which

$11

billions

mature

third quarter of 1947 and

a

in

the

ly larger amount in the first

quar¬

ter of 1948.

As shown in the table,
the total includes $25.3 billions of

thirds of the maturing issues

by

commercial

banks

are

and

Federal Reserve Banks combined.
Commercial

banks

hold

about

1.9

5.0

4.0

7.9

.8

3.1

4.0

11.6

3.1

5.4

3.1

Apr.-June

6.2

.7

3.2

23

NOTE—Figures represent par value and
Treasury bills, which are held al¬
entirely by the Federal Reserve Sys¬
tem.
Holdings of commercial banks are
totals of
holdings of Individual issues ma¬
exclude
most

turing

or

callable

in

fiscal

1947.

June

30,

1947.

'

ly the entire amount in issues due
callable within 10 years.
Bank
purchases of bonds included new
issues bought in the

or

of the
war,

amounts

war,

early

well

as

of

as

obligations

there
in

mercial

were

rates

of

outstanding
issues
bought in the market, particularly
in later years.

About half of

the

wartime

banks

increase in the
debt

was

YIELDS ON TREASURY AND CORPORATE

in

outstanding public
longer-term securi¬

charged by
loans

rates

similarly,
by

Treasury notes,
largely
banks.
Treasury

commercial

bills, which had

served

as

ef¬

an

fective short-term market instru¬

ment, especially during the early
stages of war finance, drifted al¬
most

entirely into the Federal
Banks

serve

be traded

and

have

Re¬

ceased

to

actively in the market.

The

recent action to discontinue
the posted buying rate and
repur¬
chase option is

designed to rein¬

state the bill

as

a

market instru¬

ment,
Since

the

retirement

beginning

of

in

program

the

March,

1946,
extensive
retirement
of
maturing certificates, and notes

by commercial banks.
The present distribution of
public

debt

holdings is characterized by

the fact that the Federal
Reserve

Bank

mostly in

maturity

groups due or call¬
10 years with some
concentration in the one-to fiveyear group. The bulk of nonbank

within

investment is in the
over-ten-year
range, which is almost entirely
composed of bank restricted is¬
sues.
Total nonbank
holdings of
issues eligible for bank
purchase
in all
groups amount
to
more

than

$30

The

billions.
or

Nearly all of

callable in less than

1

manner

turing

in which

issues

are

the

refunded

ma¬

will

have important
bearing upon the
cost of the public
debt, outlets for
various investor
groups, and the

pattern of rates and yields.

funding
months

A

re¬

program will have to be

developed

during

that

will

taxpayers' interest

the

next

preserve

in

12

the

maintaining

low level of interest
cost, pro¬
vide the Treasury with the neces¬
a

and

sary

pro¬

funds, and meet the legiti¬

mate investment needs of various

com¬

investor groups.

secured

changed very little. Rates
on-short-term Treasury certifi¬

be¬

absorbed

were

10 *years.
V

ad¬

Since then money mar¬
on
commercial credit

and

tween Federal Reserve Banks
and
nonbank investors.

this is due

SECURITIES

upward adjust¬

on

in¬

ab¬

able

the

by government securities, on loans
to brokers, and on bankers' ac¬

issues

the

an impor¬
factor in ' the
refunding program. The accom¬
panying table shows ownership
of public marketable securities by
type of issues and by maturity
distribution, as well as changes
since the beginning of the war.
The largest part of the wartime

conditioning

to member banks secured

government

years

substantial

outstanding

the early years of the
well
as
substantial

as

amounts

contin¬

on

as

in Treasury
Survey of Ownership
Government securities for Apr.
3D,
Holdings of Federal Banks are as of

tant

the retirement program

of

1948

year

reported
of U. S.

be

preferential discount rate

have

10.9

types of holders will be

spring and summer of
1946, following elimination of the

ket

callable:

The present composition of the
public debt and its distribution by

the

gram,

2.0

13.4

holdings are almost entirely
in the
group maturing or callable
within one
year, while commer¬
cial bank
holdings are

of the maturing bonds.

the money market was limited.

ments

4.7

16.7

certificates, $4.4 billions of Treas¬ resulted 'in a
sharp reduction in
ury
notes, and $6.9 billions of the share of total
marketable se¬
Treasury
bonds.
Nearly
two- curities held

abundant supply of low cost funds
remained at the disposal of com¬
mercial banks and any
tightening
on

.2

6.5

or

1947, July Sep.
Octi-Dec.
1948, Jan.-Mar.

slight¬

held at 7/s% and the
posted buying rate and repurchase
option on Treasury bills was re¬
tained at %%.
In this way, an

effect

6.9

crease
in
certificates, was
expenditures, if taxable income
sorbed by commercial banks
should decline
sharply, or if tax the
remainder was divided
rates should be

maturities in both of these
periods
which will have to be refunded.

change in investment
Throughout the winter,

1.8

of

but rather

a

9.6

2.5

36.6

Due

expansion

half of 1947

No signifi¬

possible

hand,

did not reflect any
large increase in available funds

This

bringing about declines demand, the Treasury's refunding
in long-term interest
rates, but program, the possibility of con¬
did not produce-any
appreciable

cant

become avail¬

On the other

should

9.5

.1

Correspondingly bought in

may

sistent.

recent

The debt retirement program re¬
some of
the factors

of

first quarter of 1948, when

by

gold

Money Rates and Bond Yields

retirement

should the expenditure total
be reduced below the
budget rec¬

70%

of

for

in the year.
The
insurance companies
and
mutual
savings banks for
long-term bonds became more in¬
demand

from

up

ceptances.

tExcluding

will

income

available

other sources—mostly months through the sale of Treas¬
inflow, which has been a ury bonds for account of govern¬
significant factor during recent ment agencies and trust funds
months, and reduction of cur¬ amounting to about $800 millions
rency
in circulation.
These sales have
Also, the by June 30.
shrinkage
in
demand
deposits supported the level of long-term
over this period resulted in some
yields,
which
otherwise
might
reduction in required reserves. \. have dropped
substantially, and in

held

accompanying the retirement

8n~raonetary gold stock, Treasury currency,

feral

the retirement

remaining loss of funds

by
adjusted
Time deposits—

more

held

9.6

—1.0

6.9

+
,

+

9.6

cash

against these factors of in¬
creasing demand, the pressure on
yields was relieved during recent

vances

bemarid deposits,

that there

of

amount

In

deposits,

and

surplus of about $3 billions

a

about

ued

gotal
i
Fxpajnse factors:
Incirease in loans

show

sues,

banks
1.3

will continue

out the current fiscal
year, it may
be estimated that the
budget will

ment in

12-month
.6

assuming that
a high level
through¬

of income

6.2

4.4

Total

funds

present tax rates and

sell additional government securi¬

>

.7

available

25.3

Bonds

16

On the basis of the
expenditure
total recommended in the Presi¬
dent's Budget and

ties for the purpose of

inves-

by

' other

past

will be small relative to the
large
volume of debt that will mature.

available funds

Late

(

4.6

—

that

the

able

To meet

program.

sulted in the removal of

Contractive factors:

and

preferential discount rate, antici¬
pations of further declines in in¬
terest rates changed and yields

1946

Factors of change Dec. 31,

months

during

retirement

Mar. 1,

Jan. 1-

Mar. 1'

thah

marketable debt.

thus

and

June.

ury

rate

*

,

__

_______

Notes

the

evident that future debt re¬
tirement will be at a much slower

ration of the debt retirement pro¬
gram and the elimination of the

Banks

Treasury bills, which are largely
During the first six months of expansion in bond holdings. Re¬
held by the Reserve System. About
1947 banks as a group continued ductions in earnings due to debt
$400 millions of bills were re¬
to sell government securities to retirement and increased costs, y a
tired in April, $600 millions dur¬
the Federal Reserve, but less con¬ growing tendency to discount the
ing May and $200 .millions in
tinuously.. As shown in a preced¬ possibility of rising interest rates,
About $9 billions of retirement
payments were on matured issues
held by nonbank investors.
To
the extent that such
payments
were
financed by draft -on war
loan deposits, they resulted in a
transfer of reserve exempt Treas¬

While

it is

largely
offset the
tightening effects of the

Reserve

retiring longer-term issues in

of

program

from

investors.

be

earlier

an

The

nonbank

Type of issue:
Certificates

budget outlook remains uncertain,

of

where the maturing debt was held
ceptionally
by the Federal Reserve Banks. As loans.
in

parable maturity.

to

can be effected through
nonmarketable securities

of

aging investment in longer-term
Following the inaugu¬

only

retirement program were

shown

narrowing in the

spread between yields on restrict¬
ed and unrestricted issues of com¬

by banks,
sale

maturities.

redemptions at the Federal

upon

banks.
restrictive

close to the volume

of cash

the re¬ through December
commercial sufficient not

temporary pressure
serve
position
of
The

In 1947

replenishing
was
accomplished induced in large part by the
the resulting
largely through sales of govern¬ higher yield that could be obtained

loan

war

have remained lower than at any
time prior to that year.
there has been a

faced

found it necessary to obtain

financed out of accumulated

was

amounted

excess

demand

by individuals

was

bank-held

of

reduce

to

to

the

reserves

current

billions and this

un¬

on

held

i

and

re¬

position of

reserve

Total

affected

\

tinued sales for

29

rations, State and local govern¬ banks
absorbed about one-third
war
loan to private
In the spring of 1946, following ments, and* the International
deposits re¬
serves
Bank. of the total increase in
through the retirement of leased
Treasury
short-term government se¬ a sharp decline after the close of
Reserve System holdings and to
bonds
outstanding, with practicalcurities that
Refunding Program
previously had been the Victory Loan Drive, yields on
increase required reserves slightly
held as secondary reserves in an¬ long-term Treasury bonds were
With the treasury balance at or ownership of United States Government
through the retirement of nonMarketable Pubiie Securities
ticipation of the withdrawal of lower than at any previous time. close to a
Maturing
or
bank holdings.
working minimum, debt
Callable in Fiscal Year 1948
war loan deposits.
"For example, Subsequently, yields rose through reduction in the future
(In billions of dollars)
will have
Retirement of. issues held by at the end of
the third quarter of 1946 and de¬ to
February 1946 bank
be
financed
out
of
Held by
current
commercial banks, about $16 bil¬
holdings of securities maturing or creased slightly thereafter. LongCornTreasury surplus, although some Type of issue and
lions out of the total of $31 bil- callable in less
Federal
mer- Other
than one year ex¬ term bond yields, while above the
retirement of marketable obliga¬
quarter due
Reserve
cial inveslions retired, had only a minor ceeded war loan
or callable—
deposits by $10 very low level of March 1946, tions, particularly of those held
Total
banks banks tors

.

;

(449)

IM7

For

Treasury bills, rate is average discount on new issue of¬
fered during week.
In general 3-to-5-year
Treasury securities are
represented by Treasury notes maturing within that
range; however,
selected

issues of notes or bonds were substituted
during periods
when they were considered more
representative. Latest figures are
for week ended June

28, 1947.

'

refunding

In addition, the

program

should facili¬

tate the

adoption of credit poli¬
cies designed to restrict excessive

bank credit expansion and at the
same

time

maintain

an

orderly

market for government
securities.

-

'

30

Securities Salesman's Corner

,

discuss "income"

prospective customer try this out. Instead of talk¬
ing about four, five or six percent (whatever may be the yield on the
a

client

or a

security you are offering) convert an arbitrary fixed principal sum
into the amount of dollars of monthly income such a fund will pro¬
duce when invested in said security.
For example, six percent on

$10,000 is $50 of monthly income.
The investor client who is primarily interested in the return he
will obtain from his investments, rather than the amount of capital
appreciation which may accrue from speculation, is the most desir¬
of customer. Market fluctuations do not excite him. When
security markets are high he is usually a good seller and when they
are low he doesn't come around with a long face and blame you for
all the ills which have befallen the world in general. His principal
interest in his securities is that he receives those dividend checks

the principal source of new leads.
Speculators rarely will go out of their way to recommend your serv¬
ices but investors will introduce you to new clients providing you
have done a good job and deserve their confidence.
The average
American security buyer has been over stressing liquidity and capital
appreciation ever since the first World War. He has had very little
leadership from the investment fraternity in introducing him to the
higher art of long-term investment which has been practiced by fi¬
nancially literate Europeans for almost a century and a half.
In order to be abje to sell "income" you have to think in terms of
what a specific sum of money will produce.. After all just what sort
of reaction do you receive when you hear the words "six percent"?
You think of statistics, oT-abstract mathematical equations, of some¬
thing technical, do you not? What is there in such a phrase that has
any suggestion of value that can help you convey a constructive
idea to a prospective investor?
But that is the way we have been
talking in the securities business ever since I can remember. "Buy
this Mr. Investor and you will get
six percent"! "So what," thinks
Mr. Investor, "that is nothing so remarkable.
A lot of investments
have paid six percent and some of them have gone up the flue too."
You can't eat a percent, or pay your rent with it, but with SO MANY
DOLLARS A MONTH OF INCOME you can do it. That is something
anyone can understand.
So why not say something like this to your next investor pros¬
pect? "Sometimes we all take things for granted, even the percent¬
age of income we receive from our investments.
When we think
of four percent it doesn't mean much to us but if we start with an
arbitrary principal amount, such as for example $20,000, and we de¬
termine the income we can obtain at four percent it amounts to about
$66 per month.
Now if it is possible to increase that four percent
to let us say six percent (and still maintain a high degree of safety
of principal) that $20,000 can be increased as far as its productive
value is concerned to do the same work as $30,000 would accomplish
at four percent, or an equivalent income of $100 per month." From
this starting point you can go on and demonstrate how you have been
able to build up investment portfolios that pay more and how other
investors have been receiving sound advice and suggestions from
due. This investor is

'

your firm.
T
This type

,

.

,

,

of solicitation may sound over-simplified and academic.
But haven't we had too much fancy talk in this business about aver¬

"You couldn't

like this:

ran

reconcile

must

ourselves

Russia

absolute veto power.

try

sacrifices

ary

to

not

to keep America strong.

We

treaty

a

must

thaf^will

do

citizens.

our

level

our

guarantee .the

civil

We

be neces-

is even more

How
to

best

battle

Toward Atomic

No Progress

rights of all
guarantee

And

the

so,

in

Charter was

Hiroshima

rati¬

1945. And then in
- Aug.
6, an event

July,
on

institutions.

human

Some

of

Francisco

have bemoaned the
the Assembly in
San
did not know of the

existence

of

friends
that

fact

atomic

that if it had, we
That

bombs

and

would have had

effective

more

a

N.

U.

a

sufficientrLo. destroy

power

nations

would

all

that

be -

so -v

compelling

would; immediately
go about making sure that that
force

men

should

used

de¬

detopat&&?^ffe^tlie

were

Francisco

San

be

never

But alas, five:, atomic

structively.
bombs

ours

we

shall

fed,

test bomb at

meetinjg^one/the

Alamagordo; two,.in

for-test- pur;-,
poses before the designated"repre¬
sentatives of the powers at Bikini:

Japan; and two

more

we./can; do.
R ysia has
turned(ber, back;:on the//vfehote
business.;? Let us once again dem¬
onstrate;; .the.

today

Please/^Mrfnat*

understood
could

that

exist

in

we

right of, .veto
atomic control'

no

an

treaty. The Russians on the other
haiid have tenaciously held to the
veto.

V

'

Over

since

months have

13

distinguished

our

confere.nce;:by^'<|eTcla^.
faci^^aicohtes^

opened- the

ing that

by
delegate

gone

we were

between

the quick and.

It would

seem

to be"

thelSead-

obvious vthat

to this point that contest does
not augur well for the quick.
up

L

.

American people
majority
peoples of the world would
respond to an appeal at this time?
by the United States-^s-n appeal
Not

only

the

<

the ; overwhelming

but

of the

well

housed.

intelligence. Let;
moratorium on world
Let us follow up Secre¬

to conscience and

tension.

But essential as all this is, by
itself, it will not insure peace
with justice. We shall have to go
beyond our frontiers.
We shall

have, for
less

time, to become

a

fortunate

Even
the

now

our

statesmen

who

main

on a

common

and
ous

or,

Marshall's / proposal for a •
inventory of economic
needs with a proposal for a world
inventory of security needs!
Let*
the United States propose through
the United Nations that all coun¬
tries be. invited to state their se¬
European

our

keeper.

prayers are

to

draw

with

curity requirements.
Let us ask
each
nation
what it
considers,

with mignt
and agree

up

point of its own

from the vantage

of action that!

course

a

tary

of Western Europe

attempting

are

and

will

brothers'

ask for

us

security, to. be the requirements of

lift

Europe:, from her back
set her on'the road to vigor¬
life in a free society. Sooner

a

workable

peace.

•

might be

lists

Such

//

*

and/

mr.ny

But. surely they would
something may have to various.
done for Asia.
We shall soon" contain certain/things in commop

later,

be

Europe's -'states¬ —reasonable/access ,vto. economic •
equal to the task fore¬ supplies, freedom'-frorn, political'
vin the Marshall fPlan.'j V5 '.:* or 5economical interference frorp.

"know ' whether
are

men

seen
-

fixing the terms of our .outside, a measure - of interna¬
tional trade, some advance toward

But in

internationally
recognized
civij
libeVtiesy-iri'sshorf4 the substitu¬

we are

ago.

year

of /leadership

type

the / world/has, pomey to /expect
from'' America—the
'mbrafy(rhe/

help/"our,statesmen will bear a
notqas-Lseeit heavy burden of responsibility..
—one bit
closer to ^greetpient/ On
I. realize that "it 2 it especially juriatomic control thafii we/ were a
PQpuiar just now tb talk of ty¬
and

*

economic

an

much

Must Aid Other Nations

Charter.

thought is based on the ra¬
demonstration

tional belief that ^a
of

and well

tint

dis¬

inventory of Europe. - We are-busy'
making.'our own to ascertain how

shoit,

world

well

people

a

clothed

the relationships of all states, yes,
all

the

here in this land of

have

in

must;

to

should not

choice?./My. suggestion is

We have called for

which basically changed

occurred

my

We

demonstrate

not

are

we

wq: escape - this

;,

follows//:tyy .V':' * /■'

as

must

survival

our

forgotten.

Control

fied

for

.Since

can

astrous

out which enterprisers cannot re¬
right and anyway if any of the
main free.
y
'
big nations didn't have the right
We must see to it that there is
to veto a proposed action by the,
Security Council, it wouldn't make a just division of the burden of
a
practical
difference
because; taxation. We must see to it that
those who bore the heat of the
War would result anyway."
;

submit.

submit, atomic;war would follow.

the right of free competition with-,
insistent on her veto;

able type

when they are

argument

pragmatic^

through the U. S.
Senate that didn't give this coun¬
get

Sometime when you have an opportunity to

Thursday, July 31, 1947

the

and

"which

with

We

(Continued from page 10)

,,

save

By JOHN DUTTON

"jy

FINANCIAL CHRONICLE

THE COMMERCIAL &

(450)

ing*

^liticaltstringk" totour.- mate¬

of

tion

inter¬

laty for the present rule
/in /anarchy! ... ..
-« b / ;

.

Yet/as T see it, we must of force
/vit as-to -be hoped that/the "se¬
just that// /- 4 y-V-»-y

rial help.
do';

live and growing

a

national

Aftey the last election, it was curity'inventories," when" totaled

fashionablfc^So

declare

that .our- dp,

foreign and domestic* policies/wera
to be kept in separate lobes of the
brain". The-right haiid of domestic

ky|Qv\$dr; show..; general. agreq4

men t

great /principle that

the

on

world peace

cannot be created and
maintained Without adequate,ma-:

chinery to enforce peace;,%-It is to;
be
hoped-'that all nations will •
ternational
policy, y Utter' non/ gladly; accept something that goes :
sense/'of v course. It cannot/be bey ond * the / demonstrably; inade- ■
done.' ' ''. Z y
\ ->/"•/' quate mechanism which is all they
have now.
A
/,
.
Just such utter nonsense is the

"policy was to act in full inde¬
pendence of the left hand,of. in¬

.....

r

..

And while this most /distressing
price ratios, economic dislocations, times-earnings figures and
belief/that, we can "or-should en¬
statistics galore? Some years ago I wrote in one of the first columns lack of progress is being reported
dorse:; a plan for the economic ihwhich
appeared in "The Securities Salesman's Corner" in the from the United Nations, Control Vtegration and recovery, even of
"Chronicle," that we securities salesmen could take a leaf out of the Commission, we ;arej;^i.|hessing western "Europe without carefully
life insurance salesman's book.
That still holds true. The life insur¬ Europe trembling imthe/ balance.:
ance salesman who knows his business doesn't sell STATISTICS.
He Another Winter without/plan/or- ^ppraising / the political * conse¬
direction will result/irf Europe's quences; of that; integration, 'y tZj
sells security in your old age, peace of mind, contentment, college
educations for your kids, and even makes it pleasant to pay the
complete disintegration:/ We • now yvyyOii Horns of Dilemma : >
undertaker. Can't we do a bit more of this kind of selling in the are fully aware that the, death* p£
y I ^argue-that
securities business?
Remember, we too have something very attrac¬ order and a free society brings ;fe Speaking, /ori; we are, by way of
the
horns of/a
tive to offer.
Liquidity, freedom from care, steady income now while, the burial rites as gladsome/ heir$; 'dilemma;'--;';" •*
/./ n
: > 1' '■ y.>\ •
the communist
you are living, peace of mind that a portfolio of income paying good
assd^a^sl<^:.'Mps^
investments provides, and of course once in a while it is alright to cow who are everrreh^^'tp^hah-; yyGn'iihe-'one hand/if we;succeed
in setting Europe on its feet and
try and buy something that is cheap and make a profit out of price ticipate in the spreading "of Rus¬
so make her more productive she
appreciation.
But why not talk about these other attractive things sia's influence and power.
will—in the absence of agreement
which we are selling rather than constantly harping on market appre¬
to the contrary—ship her finished
Cannot Afford to Drift
ciation?
The best clients are those who are coupon clippers and
factory products to the East in re¬
It
is
of
the
essence
of
our
check cashers, not free riders and quotation chasers.
turn for food and gold from Rus¬
chance for safety that America
sia.
Those factory products will
should not afford the luxury of
inevitably hasten the equipment
drifting. It is not how we wish
of, Russia with weapons of mass
things to be that must dictate our
destruction including the atomic
policy but. rather the facts, the
bomb.
objective truth. Reality must be
!
Given a continued adherence to
served if we are to survive.
ages,

this way/the: burning' quesfioncof".peace:,with Justice- can be
put fully- and,openly to. Russia. Irv
tiii? way- we can. bolster our own
position before the bar of world,
public bpinion^^specitlly in the

Filing Claims by Bondholders
Of Enemy Nations

Sets Final Date for

Foreign Bondholders Protective Council notifies holders of Dollar
Bonds of Germany, Austria, Italy, Bulgaria, Hungary, Roumania,
and Japan,

including their sub-divisions, that they must
Office before Sept. 2.

Mr.
that

file claims

Holders of Dollar Bonds

of the following countries

Germany,

Austria, Italy, Bulgaria, Hungary, Roumania, and Japan including
political subdivisions, anu<$>
corporations
with
government the laws of the United States or
guarantees, may wish to consider any State, Territory, or possession
filing claims with the Office of thereof, or the District of Colum¬
Alien Property
before Sept. 2, bia; or the Philippine Islands.
Forms (APC-1C) necessary for
1947, especially in view of the
statements made earlier this year filing claims may be obtained by
by the Attorney General that the writing directly to the Office of
claims
of
American
creditors Alien Property, Department of
against enemy property can not be Justice, "Washington 25, D. C.
considered unless filed by that
their

date.

With Schwabacher & Co.

Property
Custodian, Washington, D. C., has
indicated that debt claims may be
filed by (1) citizens of the United

George E. Carey has become af¬

Philippine Islands,

filiated with Schwabacher & Co.,

'

The

States

Office

or

the

of

Alien

(2) residents of the United

States

since the beginning of the war, or

Special to The Financial Chronicle

SAN

FRANCISCO,

-

L.'\

/1t♦rvw

CALIF.

—

hot

descriptive term indeed.

war

Market

Street,

members

of

the New York and San Francisco
,

i

will

and the world

come

i

past course,

can

be anticipated—more aggres¬

communism in
any;
one
nation—for
instance,
now. .in
Russia -— can -be,, .assured
that, security

avoid

home

catastrophe at

that

abroad?

and

must

home we

prove

World

At

in

that
the
Western
general ahd~"theUnited
States in particular is not headed

for

economic

the

dicted by

Collapse

pre¬

We must
capitalism will

the Russians.

is

munism

for

for com¬
apparently Rus¬

world won

by a

only

now

policy.

know

to

it leads we

Where

only too well.

the dilemma

sharper;.
If . we do mot
assist Western Europe to pull her¬

is^ even

'together, " we

will

abandon

mercies of the
Kremlin. We shall

the tender

her to

masters of the-

ourselves

expose

to

the

threat

$300 billions
not continue to sacrifice its long- of dollars and 300,000 infinitely
precious human liyes to
term welfare for short-term prof¬ more
its.
We must use our every re¬ prevent—that .threat is the domi¬
demonstrate

source

to

that

prevent unemployment

and depression because

trouble

that

in

she

will

organizing

Russia be»
have

the

no

world

ourselves if we go in
the slough of a deep depression.
including

our

which

we

nation of
power..

gave

over

Eurasia by?a

marshalling of the
know-how for
tories

whose

rained

down

machinery and

atomic bomb fac¬
product might be

upon

us

if we did
.

where
-

statement;by/the:United States of;

-.bseeib;ity yinyenjoryj* •

our../; own,

given Lto /- the f United - Nations
should create the atmosphere in
which an American
appeal for
world peace and for

adequate ma-^
not fall on deaf
' ■'

would

chinery
ears.

,

j

This should be done in the next

proposal;
this .invent may be reported to
the United Nation's General As¬
weeks

few

so

that this

when it meets this Fall, j
discussed and debated

sembly

there

and

before

thoroughly

.

a

decision

is

reached.'
But
to

all

if—despite

the

emphasize

our

good

efforts

will in.

proposals for common
made — Russia? still j
refuses, then there may be no
choice but to go ahead without !
Russia.. Then we might have to.i

which

our

security

are

in

ai

strengthened

UN

other countries as

j

willing/ tp ..come - along with,
us.!' The door for future member-y

|

with

as

many

are

It should |
happy duty? of the UN/lo |
in its day-to-day, opera- J

ship can be .kept .open,
be the
prove

tions that its preponderant power

j

threat to countries

j|

constitutes

outside

no

and

that

the

benefits

of !

participation will become dramat- j;
ically apparent.
•
Let'

totalitarian.,

Quick then would,be the

Eastern, area

Far,

mptives .are most in doubt. A

proceed

'

-

The other horn of

self

critical

The historic Marxian theory

sion.

What course shall America pur¬
sue

only one result

her

sian

end in cold ashes.

will

lieves
600

(3) corporations organized under Stock Exchanges.




But
I say in all seriousness that if
ways
and means are-not- found
and devised to stop that cold war,
and

—

engaged in a cold
Soviet Russia. An apt

were

with

war

with Alien Property

said the other day

Baruch

we

Should Act Without Russia /

f

wvIn

us

.

that there is yet
present peril¬
Let us hope that there:

hope

time to -reverse the
ous

is

drift.

yet

time

human race

gift of life,.-

to

prove

that

the

is worth God's great

Volume

166

Number 4616

THE COMMERCIAL & FINANCIAL
CHRONICLE

Republican Congress Kept Pledges No! This Was Not
(Continued from page 2)

and

Democrat

der

one

gresses talked, .unfortunately, not
complete his
about putting
ent, the tax relief demanded and 1 but -merely talke
I term.
so
well deserved by the peonle. I the army, navy and air force un¬
We submitted to the States a

.TxY .ce

we passed a tax bill, a
fair bill that gave the
largest per¬
centage of reductions to the "little
.

Jisserting that for people to
trol their

His

con¬

money

It will

we

be

permit

judgment

a

disastrous

one

Air

above

overwhelming

the

will

majority

of

of Congress.
Congress passed a fair and just
labor-management relations act.
Yielding to pressure of radical
politicians
and
his
left-wing
friends, the President vetoed that
bill
and
Put
out. a demagogic
smoke-screen
of
misrepresenta¬
tions and epithets in an effort to
measure

that the

and

weapons

establishment.

We

will

get a dollar's worth, of de¬
fense for every dollar we
spend.
Veterans' legislation: There has
been loose talk in Democrat cir¬
cles

that

President

Truman

was

to

eager

sign a lot of veterans'
legislation. Democrats were vocal

during

the

closing hours of the
spreading that falsehood.

session

Now

over¬

this

is

what

dent's veto. -Now the truth about
•that law is catching up with the

'^Except for minor adjustments,
believe

falsehoods,
*

on

I

what

Congress intended it to do:
the

and

to

the

Congress
legislation in
his

veterans'

that

pro-

,tect

said

our

rights

of

working-men

against

women

from

abuse

of

program

benefits for veterans is

That law is doing exactly

■

now

com¬

plete."
of

General Omar
Bradley, Director
the Veterans'

Administration,

adhered to that position in

-

enable labor organizations to en-

-

In

; joy healthy growth.

..

.

report

a

.

as

,

,

recent

as

July 18,

General Bradley
opposed the bill
to increase subsistence
allowances

bers of Congress

;

for veterans

want to ensiave

labor is sheer nonsense
The President said the

unworkable.
It

named to enforce it.

were

this

law

law

is

Any law would be
if people opposed to

unworkable

workable.

is

But

shall

We

not

:

permit maladministration to
sabotage it. Already, renorts of
the Federal Bureau of Labor Sta-

.tistics

show that strikes have
less, and many labor un¬

grown

courses

un¬

"This

.

bill

sidered

to

could

not be con¬
in accord with the

be

President's program."
That meant the President

against the bill and

por¬

guage in reports on
Mils.

scores

loyal persons out of the Truman
Administration is
beginning to
bear

fruit.

remedial

We

pro¬

NOT complete, and we
the President bills that

was

will

legislation

complete

during

the

next session.

lined

Congress stream¬
legislative machinery,

the

though it set us back
getting our legislation

month in

a

We set about

overhauling the Ad¬

ministrative

branch

of

the

gov¬

ernment, which consists of layer
upon layer of boards, bureaus and
that

get
in
each
other's way, duplicate each other's
work, and eat up your money.
Foreign Policy
On

foreign affairs, the 80th
Congress cooperated with the Ex¬

ecutive

branch on every measure
we deemed to
be sound and
in the interest of
our country.
We
made loans and generous

that

gifts for

relief

and

recovery
of
warcrippled countries; joined the In¬
ternational Refugee

Organization;

appropriated

for

the

United

Na¬

be cut

/

the

pensions of aged veterans of
the Civil, Spanish-American
nnd

dime.

a

His New Deal propaganda machine worked overtime opposing

:

-

,
«.

budget

proposed

every

-Sent

Indian

of their dependents.
The last Congress

he

cut;

parade of bureaucrats be¬
Committees of Congress to

a

fore

argue

to give enlisted

favor
.

^

cut

it.

But

keep

And

"have not interfered with

islands

We

in

the

Republicans rare

are

not

foreign

on

doing

Pacific.

our

going
policy.

thinking

own

the

On

problems in fulfilling our
responsibilities.
There must be
complete cooperation and consul¬
tation between the Executive and

Legislative

branches,

policies

on

.

*

soil

control,

flood

conservation.

|

and

J

dollar

that

any

Congress
has

,

delivered
resulted

Federal

many years

I

all-time

—

high,

a

of peace on the

•

;

is

va

economy-minded

:We

the

in

the

first

in

employment at

an

—

semblance

a

front;

the

budget

present

so

deeply

as

1948, the Federal
payroll will have been reduced by
more than 200,000 persons whose
services we no longer need. It
Jan.

1,

will be reduced still

during
have just

more

the next session, for we

all

treaties

Now

affairs

problems

our

are

turning

of finance and

in

foreign
questions

to

economic

froze

labor-management

the

social

security
payroll tax at 1% until 1950, and
thereby saved the people of our
country two billion dollars a year,
half

of

which

would

out

of

men

have

come

and women.

the

pockets

of

working

We have passed the
Presidential
succession
act,

begun to dig into the sprawling, i
making the
tax-eating bureaucracy.it
Speaker of the House of
Repre¬
Now regarding the armed forces:' sentatives first in
line for

and

-that

means

the

Executive

bills

money

originate, as a
partner
in
foreign

full-fledged
affairs.

;

*

..

It is to enable the House to meet
its
responsibilities, and to reach
its
own
conclusions
on
foreign

policy, that the House

is

sending

to Europe this Summer a commit¬
tee to study first-hand the needs
of striken nations, and how and
what

extent

our

country

can

part of the problem of foreign
relief is the impact upon our econ¬
omy of exporting huge amounts
of

food, machinery, building

ma¬

terials and of countless other items
out of our already short
supplies.

Ill-timed
ment

reckless

and

govern¬

buying for shipment abroad,

with too little regard for the needs
of

our own

needs

has

of

been

people,

those

keeping the

or even

wish

for the

to

help,
important factor in

an

we

cost of living in our

country high.
So, in appraising the work of
the 80th Congress, you see the
Republican Party delivers. Dur¬
ing the next session, our united
party will continue doing the job
now

so

the

years

Democrat

Presidents'




Presidency should
J,..
f

f

.

the
.

President,
.
.

passed

real

gore or

men

Con¬

as

Pepper, Kil-

That their bills
is not a

passed

That these bills
a

the

of the pending

any

Murray.

not

now.
was

It would have

story had

bills by such

story
dead

were

story last Nov. 5, but not

now.

Nevertheless,

a

rather

general

newspaper treatment now seems
to be that the failure
of Congress
to pass measures of
this kind is
a lack of
accomplishment.

Congress is given due credit for

having

passed

ple will elect
dent

who

a

will

Republican Presi¬
cooperate

with

a

Republican Congress to finish the
tasks that

now

confront

and to

us

deal with
ness,

'■•■;■

problems with fair¬
and foresight,

new

sound

sense
■

•

■
.

:

-J

capably

that

truly

drastic

econ¬

omy will not be effected until

get

we

Republican President. He
would not permit the
department
heads to go to the
a

country and

apply the
they
did.

Truman

them to do

The

the

which

encouraged

so.

most

flagrant examples
Secretary Krug and
Navy. The cuts

Interior

were

tactics

pressure

Army

and

effected in the funds of the latter
two

quite

were

Men

disappointing.

who

acquired prestige dur¬
ing the war, such as Eisenhower,
had a way of
looking very grave
and

"warning" the country against
Republicans'
"irresponsibil¬
ity." It is not without significance
the

that

when

Eisenhower accepted
of Columbia, he
explained that he had wanted to
the

presidency

remain

chief

of

staff

until

the
Taft-Hartley
appropriations were passed. In a
outlawing
manner of
speaking, he owed it
wage
suits and

the

labor

bill, the
portal-to-portal

bill

the two tax reduction
bills;.
in the eyes of the

to his-fellow

positive action to do these
things.
Just why would it be
expected
that a Congress
which did these
things would also pass such as the

four

brass who will

nec¬

That,
essarily take demotions when the
correspondents,
apparenty constitutes accomplish¬ Army is put on a more even keel.
The committee found there were
ment.
Congress acted.
It was

Pepper,
measures

Murray
and
Kilgore
is difficult to under¬

majors
lieutenant in
and

to

second

every

the

further

forces

ground

disproportionate

ratios Ml along the line. But
Con¬
gressmen
can't
be expected
to
stand up against

highly prestiged
"gravely
warning"
against the background of a dis¬
newspapers
generals

However, read

your

turbed world.

k'
_

Similarly,

Marshall

is

lending

The

funny thing about it is that his great prestige • to big and
the Republicans
themselves, un¬ better spending abroad. The Re¬

der the

publicans

drubbing they take in the
Eastern press, seem to be on the

on

defensive about their record.
They
are prone to explain their lack of
"further accomplishment"

creasingly critical of him. In the
past they have eaten out of his
hands.

that it took several weeks to
get
the
new
committee

.They could
scarcely conceal
feeling
towards
General
Bradley, Veterans' Administration
head, at the session just closed.
His
high-handed
attitude
was

by say¬
ing they were confronted with a
reorganization of Congress and

machinery
working. This could be frighten¬
ing because it implies that if they
had had the time they would have
passed marty more bills.
server

stand
For

there

thinks they
on

This ob¬
very well

can

their record.

the

first

time

the

was

in

14

spectacle

the first time we saw
of the spending trend.
It is

a

their

pronounced.

like

the

If

Congress didn't
was
throwing

he

way

away money, they could have his

job. He

never

was

wanted it
anyway.
his attitude.

the

fact that

they didn't trim
budget as much as they set
out to do. The .actual
trimming
amounted to
slightly more than
the

$2 billion which is not the

getting quite fed up
are becoming in¬

years

of

reversal

a

are

it and they

That

legislative body not only not ap-,
propriating willy nilly, but cut¬
ting the Presidential budget. For

James Scott Baker

Opens Own Firm
Formation of the firm of James
S. Baker & Co. as
dealers in U. S.

Government

securities

and

in

prom¬

ised $4V2 or $6. billion but is cer¬
tainly not to be scoffed at. And
Chairman

John

Appropriations,

Taber

of

claims

House

that

sav¬

ings
altogether
were
effected
totalling close to $5 billion and I
think

his

claim

is

Hundreds of millions
in

recission

of

justified.

were

funds

saved

previously

appropriated and in the revision
of estimates

by

many departments

after the committee's
investiga¬
tors went to work. Just one ex¬

ample was the case of a supple¬
mental appropriation of
$1.3
billion sought by the Veterans'
Bureau.

With

the

heat
being applied the Budget Bureau
itself, cut this down to $980 million
revealing that there had been an
amazing lot of water in the orig¬
inal

economy

estimates.

The

well advanced.

And then we shall move on to
the 1948 elections, when the
peo¬

..

t.For

legislation.
a

matters.

A

pledges

surplus

and

did

its

on

Treasury

been a Congress that cut a Presi¬

By

.

,

sigh of relief that we now have a
Congress that is dedicated to pro¬

there

Congress.

i

V

Other Legislation
the country there

dential

^

;

to

gress

ever

there

that

help them.

A

...

diately after the November elec¬
tions, and as the Republican Con¬

another-

Never -before

fact

are subject to ratification
by the
Senate,

signed the bill.

moting our American way of life.
This better feeling set in
imme¬

The solid fact is that this is the

.

authorized pay¬

-

jbiggest reduction in a Presidential
budget

Treasury

Across

billion
that
earlier Congresses had authorized.

made.

the

..all our. veterans, in cash.
Knowing - Congress would over¬
ride-any : veto,
the
President
1

budget by more
than three billion dollars, and re¬

.

the gov¬

as

ing

; thirty-seven billion six hundred

-

cash,

~ress now has

What we: have

travagance, all to the advantage
of the American taxpayer.
<• V
We
reduced
the
President's

claimed

in

speaking
for
the
President, the present Republican

■done is" to cut out waste and ex¬

million

women

We Department,

any nec¬

or

reclamation,

of

branch must recognize the House
of
Representatives, where tariff

and

rehabilitation of our veterans, for
'

also

That

ernment
did
their officers, but
the Administration
objected. Over
the
opposition of ,the

we

desirable government
function. 'We have provided fully
for national defense, for care and
essary

law

a

but five-year bonds
their, terminal leave pay.
The Republican
Party at that
time favored
paying these men

this constantly

We cut with care.

Jin mind:

;

passed

of World War

social
been
gress

and see if the
story isn't presented
as at least a
part failure. "

We

as

gram.""
*
We said the budget could be cut
and that it would be cut.

.

men

allowances

They have apparently not yet
that what has happened
has been to
"stop" the so-called

mandated

II, not cash

against the cuts; he marevery available; votev in
of his spend and spend pro-

shalled

.

the

and

wars,

5.

stand.

-

time 1939—could not and must not

apparently quite difficult

tions, and authorized an American
trusteesnip for former Japanese

Stated

:

is

the

correspondents to realize
that the voters made a
very def¬
inite return to the right last Nov.

under way.

On
Government expenditures sent to
before they are announced.
generally, Mr. Truman repeatedly said so. And we
did not confine
We are mindful of the Consti¬
publicly that his budget our consideration to
veterans of tutional provision that
lodges in
estimates—four times larger than
World War II. We
passed bills to the Executive the duty to nego¬
the cost of government in peaceequalize with present day costs tiate treaties. But we are mindful
.

pass.

for

were

Your present

lan¬

gress said that the veterans'
gram

Republican

campaign to
drive Communists and otner dis¬

'

(Continued from first page)

Washington

realized

Our

Gen¬ along* blindly

of other

research

sion.

likely would

veto it if Congress passed
itr
eral
Bradley used similar

for

the

years

cor-. declared
open warfare. It is the
respondents have been so accus-!
first time'in history, as a matter
tomed
to
listing Congressional of fact, that
Congress has reduced
accomplishments by
what
was a
budget when tne President is of
passed, that it is difficult for them a rival
party.
now to change and list
these ac¬
The experience of the
Republi¬
complishments on things which
can
budget cutters proves ines¬
did not

It
National

a

science, and set up the
Energy Control Commis¬

pure

Atomic

was

However, the Republican Con¬

Government Expenditures

-

pursuing

der the Servicemen's Act of
1944.
He said:

ions have found the law workable.

:

the

-

many

out of work.

Foundation

scores

To say that
nearly three-fourths of the mem-

.

smash

established

commissions

any
source; • equalize
collective of reports on pending bills to the
bargaining and make our system House Veterans' Affairs Commit¬
of collective bargaining work, and tee. '
•
--■

,

have

suits racket that

pay

women

We

President

message on the State of the Union
last January 6:

over

states

two

threatened to bankrupt industries
to throw thousands of men

in

defense

voted for.
We
the Presi¬

law

tal-to-portal

Science

Democrats

alike,

18

passed the act to

and

new

Truman

that

Already

to

and

and

whelming majority of the mem¬
bers of Congress, Republicans and
passed

Presidents

17

Session oi Congress

amend¬

ratified that proposal.
The 80th Congress initiated and

tional

an

*

a

And

limit

to

terms.

planes, to weld these departments
into a modernized, effective na¬

people and

discredit

Force.

ment

we
appropriated
ample funds, with emphasis upon

the

of

is to co-or¬
functions of three co¬

the

Constitutional

proposed

research

if

place his

to

man

error

long

was1

equal branches—Army, Navy and

not.
'

Action

responsibility

dinate

is inflation¬
ary, but for the government to
tjake it from them and spend it is
own

head.

over-due. We passed the new law
that unifies the armed forces-un¬
der a single Secretary of Defense.

fellow'; twice he vetoed that bill

"Do Nothing

a

C

accomplishment of Taber's

committee, including such men as
Wigglesworth of Massachusetts,
Dirksen of Illinois, and
Ohio, becomes all the

Jones of
more

markable when it is realized
had the executive branch

>

„

.

and

offices
York
Scott

at

S.

Baker

municipal bonds,' with
40

Wall

Street,

New

City, is announced by James
Baker,

President of

formerly
Harriman

a

Vice-

Ripley &

Co., Incorporated.

Joins

Byllesby Staff

Special to The

Financial

Chronicle

re¬

they

against
them. Of opposite political
faith,
it not only would not
cooperate, it
\

James

state

«i

<

CHICAGO,
Alonge
is

ILL.
now

—

Samuel

with

H.

J.
M.

Byllesby and Company, Incorpo¬
rated, 135 South La Salle Street.

".Hhl'.rVU'JlM/J *,«Wy lUMF»A^OA)i^m^ *ws>

1

■\\WJP'" ,i„Ui; i'r )f vuH

THE COMMERCIAL & FINANCIAL CHRONICLE

(452)

32

Whenever markets tend to

Tomorrow's

best

it

find something
that will give it moral sup¬
port for the nebulous future.

Whyte
WHYTE=
offerings

absorb

Protect long positions

ahead.

with stops.
#

*

*

Last week this time I

was

trying to convince a lot of fish
off the Coast of Maine that I
boss.

Apparently I did do
they all kept away
from me, though they gobbled
up all the revolting bait on
the hook. Why I bothered to
try to catch fish I'll never
know.
I don't like catching

was

well

so

fish—though I have yet to
catch

one

when I don't

smooth ruffled

to

me

fea¬

thers

Market continues to show in¬

to

before

letter

market

tries

s=By WALTER

or

away,

A

Says—
ability

come

even

by advising readers not
to worry.
"Over a period of
time," says the letter, "there

be plenty to worry
about; but this does not ap¬
pear to be the time to worry
about it." Now, that is what
I call nice and cozy.
Use a
stretchout of that old cliche,
"Don't
cross
your
bridges,
etc.," and everything will be
lovely.
\
may

*

*

*

experience the time
tall worrying was
somebody tried to con¬

In my

when
vince

"there

that

me

was

nothing to worry about."

I al¬

eating them. Golf, now ways preferred to do my wor¬
there's a game for you. Those rying alone. I didn't like com¬
Maine
courses
around Bar pany. To have a man tell me
three

then

are

a

Take

cinch.

a

"What

are

you

complaining
had was such

All you
get on the green
five to hole out. Yes- and such stock; look at me.

to
a

about?

siree, the courses are a cinch.
It's those greens

that bothered

me.

much and

I had ten times as
my

loss is

greater,"

I lost

was never

personal losses. If

balm for

a

an arm

it wouldn't make

Anyway between these so- me feel any better because
called sports I glanced at the somebody else lost both arms.
market and discovered that it

didn't

look

any

Maine

than

it

York.

The

the

did

in

New

did

stocks

same

All this

*

*

*

in

better

leads back to the

any

sport clothes.
#

-'

Last

jj«

sjr

week

there

one

was

day when the market looked
it might forge through
all that stock just ahead of it
and
go places.
Monday it
changed its mind and went
back to sleep.
At the same
time a lot of talk began about
the rails threatening to go up
and thereby confirm the re¬
like

advance

cent

trials.

the

in

indus¬

This, according to the

lads with the slide rules and

charts, would

mean a resump¬

All

tion of the bull market.

this

was

no

more

quite interesting but
informative

markets in the past.

than

~

we

Securities

Schwabacher & Co.

.

,

,

^

appointm

o

Departme
been

member

turn

ciation of Los

the

for

past

are

14

Richard

years, and is
well
known
in

O'Neil

R.

trading

'

circles

throughout the country.
He was
associated with Fairman & Co.

New

New York 5, N. Y.

14 Wall Street

Teletype NY 1-928

COrtlandt 7-4150

> ■>

San Francisco
—

—

Santa Barbara

Oakland

—

Sacramento

It is

Steel

possible you have U. S.
66. It's now about

at

place your
at 72 and let it ride.

75V2.1 suggest you

stop

83 and
is now about 91. The stop in
that one should be 87. So long
Bethlehem came in at

these

stocks

above

stay

figures you can hold on.
they break your action

these

If

should be obvious.
More next

Thursday.
—Walter

Whyte

expressed in this
article do not necessarily at any
time coincide with those of the
Chronicle. They are presented as
those of the author only.]
[The

views

Placed
head

&

Stanley

&

Ripley

Co.
Co.,

and
Inc.,

nationwide group of 41 in¬

a

offering
(July 31)
200,000 shares of J. P. Stevens &
Co., Inc., capital stock at $34 per
share. The offering represents a
part of the holdings of the estate

vestment firms which is

the

to

Nathaniel

of

today

public

Stevens

constitute

not

new

and

Incorporated
in

1923

financing by

partnership

a

Delaware

under

as

the

successor

organized

in

in

or

real

not

estate

in the London market
(an
London
stocks
today

of

vs.

a

1936 high

of about 143).

stock

prices
times

prices
at

are

as

present,
for

trasted

presently in his¬

area.

in

been

made

It is true that

history have such
high as they are

but

if

adjustment

65-cent

a

with

a

dollar

100-cent

is

con¬

pre-war

a

child's toy. Yet nucelar

fission is only one source of future
wonders that we developed in

and

security among
our people, build up anti-depres¬
sion insurance, we musl^sell more

in the finished state for
men's, Women's and
children's
garments and as upholstery fab¬
rics for the automobile trade.

U.

sold only

3,

period Nov. 1, 1946, to

and
was

1947,

the company's net

amounted
net

income

$109,190,726
that period

to
for

The
company's
outstanding
capitalization consists of 3,459,988
shares of capital stock. Quarterly
cash dividends of 37% cents per
share each were paid on the stock
in January and April, 1947, and
one of 50 cents per share in July,
1947.

—

cott,

formerly

for

with

Thomson

Barnard Pres-

&

now

with

A.

M.

many

years

McKinnon,
Kidder

506 Florida Avenue.

is

& Co.,

S.

people.
Pointing

Chronicle

MORGANTON, N. C.—Jesse S.
is

at 102

aby

conducting
business

his

own

from offices

Riverside Drive. Mr. Lock¬
was

formerly

Morganton

representative for R. S. Dickson
&

Co., Inc.

to

more

1
out

that Minnesotans

a billion dollars,
today, stored up in
these bonds, the interest and ac¬
crual on which adds $28 million
to the liquid assets of the state

have

more

cash

than

value

program

servation

148

143

283

220

1937—.

194

113

298

174

158

99

243

153

155

121

238

186

152

111

234

1940—

It

is

tion

indeed

puted

whether

to

as

dollar is

the

even

by

171

debatable

a

value

ques¬

the

of

65 cents

com¬

the

U. S. Bureau of
Moreover, in the
last prewar boom years of 1936
and 1937, when the industrial stock
price index reached highs of 18^
and 194, respectively, earnings on
the stocks in this index were $10.07
and $11.49, respectively, as com¬
pared with $13.60 in 1946 and an
estimated $16.25 for 1947 and a
tentative estimate ranging any¬
Labor Statistics.

a

maximum of $18-19 for

In

1948.

other words, Dow-Jones

industrial stock

prices in 192-3 sold
high as 18.5 times 1936 earn¬
ings and in 1937 as high as 17
as

times

1937

with

earnings, contrasted
present price equal to

a

about 11.4 times this year's prob¬
able earnings.

in

to a fish and game con¬
program.
"To be sure

postal savings was 3%, in sav¬
banks 2% and in Savings

ings

Bonds 1%.
In the

Bond
or

f(rst half of 1947, Savings

sales exceeded $3.8

billion,,

57% of the total for 1946. Sales

of E, F and G

bonds exceed their

redemptions

by
$1.48
billion.
Against a backlog of nearly $31
billion in E bonds, cash-ins were
over

quarter of

a

a

billion dollars

less than E bond sales. Individuals

put
$3.3
billion
into
Savings
Bonds, about $2 billion of it into
E

bonds.

Total

sales

since

the

Victory Loan have now reached
$11.5 billion for all Savings Bonds,,
almost

billion

$3

above

redemp¬

tions.

"If

the

Savings Bond program
that
healthy," Mr. Johnstons
continued, "why am I here to

is

to put your weight be¬

urge you

hind

the

Payroll Savings Plan.
Simply because we must push it

harder,

as a

vital part of the

agement of the national
the good of the economy

good of

us

man¬

debt, for

and'

the

all."

In supporting the

Savings Bond

program, bankers are not altru¬
ists but realists, for like business
and

industrial firms they depend

for

their

long-range

prosperity"

and nrofit upon the general healths
of the economy, he said.' "Banks

issue about 70% of the
Savings
Bonds sold in peacetime and don't

get
pays

a

for it, directly.
public good will and

penny

in

It
im

hard

cash, eventually, as it will
to support the PayrolB
Savings Plan.
pay

you

"Public

opinion

surveys

show

are
concerned
steady supply of consumers that Americans
of your products and wares, you with economic security as never
A basic
must build up buying power in before.
feeling of inse¬
the form of savings just as your curity is the underlying cause of
most labor unrest.
fish hatcheries stock your lakes
We are going

of

a

to have to provide

and streams."

recently reported that

savings

liquid

Jesse S. Lockaby Opens

investment

Bonds

Savings

The SEC

Lockaby

Special to The Financial Chronicle

TAMPA, FLA.

ities and financial

this year, he compared a savings

$14,995,165.

Special to The Financial

Low

228

184

(Continued from page 4)
look like

apparel, upholstery and in¬
dustrial
fields.
The
company's
woolen and worsted fabrics are

May

High

96

148

Gale F. Johnston

1899

.

sales

65-Cent Dollar

Low

High

1935-;

facturing in this country. Among

For the

-Price Range In Terms of

100-Cent Dollar

Depression Not Inevitable, Says

to

by the late John P. Stevens, the
company
or
its predecessors or
subsidiaries have been engaged in

companies

the

average would be as follows:

$15 to

frequently pointed out that

torically high
few

comparable
price
D-J
industrial

for

ranges

where from a minimum of around!

Making Some Adjustment
It is

the

does

the, company.

laws

1937—certainly

stands around 160

Mkt. at $34

on

Morgan
Harriman

With A. M. Kidder & Co.

Fresno




even

than it bought

more

and

commodities

index

J. P. Stevens & Go. Stk.

buy

1936

in

in the

v

Private Wires to Principal Offices

Monterey

place outside of
stock market where the dol¬

the

lar will

or

York Stock Exchange

Exchange (Associate)
San Francisco Stock Exchange
Chicago Board of Trade

manent depreciation of the dollar.
We know of no

in

prion to his new position.

Members

New York Curb

permanently

to its prewar
level.
Prevailing stock prices, in
our
opinion, do not by any means
fully reflect the extent of the per¬

Traders Asso¬

1938

8)

page

dollar,

1936___

it follows likewise that the
general price level will never re¬

Security

Angeles

Pe°ple will receive,

war,

of

the

jobs open, the wages

pre¬

a

has

of

Since the dollar size of the debt
will never be what it was

t.

n

the

worth."

O'Neil

Mr.

influence

they can buy
savings will be

f
Trading

their

will

long time

a

what and how much
and what their

as

manager

for

so

oru *ncome

Richard

O'Neil

It

come.

number

t

e n

(Continued from
continue to do

to

the

announce

and the stocks textile manufacturing since the
still theoretically long beginning of power textile manu¬

Orders Executed on

Pacific Coast Exchanges

&

Co., 530 West
Sixth
Street,

of

Mean Higher Stock Prices

ANGELES, CALIF. —Os¬

Kraft

wartijne*. Electronics, synthetics
and physio-chemistry have such
their subsidiaries
possibilities that I can only blink
acquired through merger as of
my eyes like Rip Van Winkle and
Aug. 31, 1946, were M. T. Stevens
see that everything has changed."
& Sons Co., the successor to a
Mr.
Johnston
reminded
his
woolen
manufacturing
business hearers
that within the lifetime of
founded by Nathaniel Stevens in
many of them such scientific toys
North Andover, Mass.,
in 1813, as electric
light, the horseless car¬
and
Slater
Manufacturing
Co.,
riage, the talking machine, the
Inc., the successor to a cotton motion
picture, the radio, tele¬
amount to is now the favorite manufacturing business founded graph and telephone, the flying
by Samuel Slater in 1790. The machine
had been developed into
pastime. The assumption is company is one of the largest
industries and services that em¬
that the demand will either and most diversified in the textile
ploy millions of men and billions
field,
producing of dollars of
continue or increase, an as¬ manufacturing
capital and create
fabrics in the woolen, worsted,
true wealth.
Now we have the
sumption I don't go along cotton and
rayon divisions, and
keys to whole new realms of ap¬
with.
operating 28 mills, of which 9 are
*
*
*
plied science that stretch farther
located in New England and 19
than we can see. If only we man¬
in the south. The company is also
In any event both Big Steel
age properly, we can really make
one of the largest agents for the
this a Land of Plenty, he said.
and Bethlehem are still in the sale of textile
products made by
One of the first things we must
black and I hope will continue other manufacturers.
do to manage our economy into
to be so.
But I'm not naive
Cotton and rayon fabrics manu¬ firm prosperity is to distribute our
enough to rely completely on factured by the company are sold $258 billion national debt so it
in both the grey and finished will be a help, not a hindrance,
hope.
state for a wide variety pf uses he said. To spread the debt secur¬
*
*
*

as

Pacific Coast

LOS
car

stock market

flip-flops and the of. They have acted nicely,
same people inhabited custo¬
though no more so than other
mers' rooms talking the same stocks. The fact that the steel
language. The only difference companies will raise their
was that customers up there
prices is of course no longer
wore sport clothes and talked
news.
The various computa¬
mighty big. They talk big in tions about how much more a
New York too, but don't wear
share
these
earnings
will
same

Depreciated Dollar Should

Oscar Kraft & Co.

to do some

like

Harbor

Richard O'Neil With

thing that will either explain

Markets
Walter

to

public tries its
up with some¬

the

dullness

Thursday, July 31, 1947

of individuals in
of 1947 were at
since 1940, he

the first quarter

lowest

the

pointed
or

64%

their

rate

out.
Some $900 million
of the amount added to

savings represented net in¬
in holdings of U. S. Savings

crease

.Bonds.' T^hile the withdrawal
in postal and bank savings
creased over last year's, the

rate
in¬
re¬

demption rate on Savings Bonds
decreased.
The ''deposit turnover

more
security
against unemployment and partic¬
ularly against old age, since the
average age of Americans is in¬
creasing at such an amazing rate.

Which of

us

would not

accomplish this

as

far

prefer to»
possible

as

in the American
way, through in¬
dividual thrift? The war is
oyerr
but we are still in a

grim contest
with totalitarianism. To
win, we
must show the rest of the world
that
man

our

the

system gives the average
most security."

*\

Volume

166

Number 4616

THE COMMERCIAL & FINANCIAL
CHRONICLE

Securities
•

Acme Electric Corp.,
Cuba, N. Y. (8/11)
26 filed 123,246 shares
($1 par) common

June

Colony Corp.

Offering:—To be offered publicly at $5
Proceeds—Company will receive proceeds from
the sale of 58,880 shares and four
selling stockholders
the proceeds from the sale of 64,366 shares.
Company
also will receive proceeds from the sale of
20,000 war¬
share.

rants for

common

stock to underwriters at

an

Now

in

INDICATES ADDITIONS SINCE

PREVIOUS

aggregate

Broadeastlng Co., Inc., N. Y.
1946, filed (by amendment June 23, 1947)
shares ($1 par) common stock.
Underwriter—

27,

33,333

Offering—A maxi¬
of 30,000 shares may be sold by
company to per¬
sons, firms, or corporations with whom the corporation
had network affiliation agreements on March

Illinois Securities Co.,

—

Crawford Clothes.

The

remainder

31, 1946.
(3,333 shares) will be offered publicly.

Baltimore

Markets

July 28 (letter
special

Inc., L. I. City. N. Y.
filed 300,000 shares ($5
par) common.
Underwriters—First Boston
Corp., New York. Price ay
amendment.
Proceeds—Go to Joseph
Levy, President,
selling stockholders. Offering date indefinite.

Increase

Price by amendment.

Barium
•

American Gold Fields,

Inc.

(8/15)

14,999 shares (par $20)
Price—$20 per share.
Underwriter—
working capital.

Corp., New York
$3,000,000 15-year sinking fund debentures,

mon.

(letter of notification) 150,000 shares of com¬
Price—$1 a share.
No underwriting. For equip¬
ment suitable for the
recovery of gold from placer min¬

ing ground.

ment of loans and for other

refunding mortgage
bonds, series *%" due 1982. Underwriting—To be deter¬
bidding. Probable bidders: The
Halsey, Stuart & Co. Inc.; Coffin dk
Burr; Spencer Trask & Co.; Dillon, Read & Co. Inc.
Proceeds—To redeem
outstanding mortgage bonds, series
"F," due 1965, to repay bank loans, and for
property

American

Machinery Corp.
Mar. 31 filed 133,000 shares (50c par)
common, of which
10,000 will be offered to officers and key employees.
Underwriter—Townsend, Graff & Co. Price—$3.50 per
share.

ing

Proceeds—For general corporate purposes includ¬
reduction of bank loans and outstanding notes. Issue

may be withdrawn.

American Vending Machine Corp., New York
June 30 filed 145,000 shares ($1 par) common.
Under¬
writer—Reynolds & Co., New York. Price by amend¬
ment.
Proceeds—Of the total, 120,000 shares are
being
sold by stockholders and the balance
by the company.
The company will

proceeds for organizational pur¬
poses, which includes the perger of Berlo Vending
Co.,

York.

M

■

American Water Works
Co., Inc., N. Y.
March 30, 1946 filed 2,343,105 shs. of common
(par $5)
plus an additional number determinable only after the
results of competitive
bidding are known. Underwriters
—To be filed by amendment. Probable
bidders include
Dillon, Read & Co. Inc., White, Weld & Co., and Shields
Co.

(jointly), and W.

First Boston Corp.

C.

(jointly).

by amendment.

Langley & Co. and The
Offering—Price to public
.

»

Armour and Co.. Chicago

preference stock, Series A; 300,000 shares of convertible
second preference stock, Series A, and
1,355,240 shares
common stock (par $5).
Underwriting—Kuhn, Loeb &
Co., New York. George Eastwood, President, in letter
to stockholders, Dec.
22, said: "We have come to the con¬
clusion it will not be necessary to issue
any additional
common stock" as part of
company's refinanc¬

shares of

ing plan. In connection with the sale privately of
$35,000,000 3%%
debentures
announced
July 17,
1947,
George A. Eastwood stated: "The debenture sale permits
the

accomplishment of

some

of the

refinancing plan which the directors

ment contemplated

holders at

nearly

a

year

ago

objective of

and

manage¬

when the share¬

special meeting authorized.the issuance of
two new classes of preferred stock.
These new stocks
were designed to. carry a lower rate of
dividend than
the present preferred stocks and the
consequent reduc¬
tion

in

annual

dividend

requirements

was

and

still

is

•
Arnold, Hoffman & Co., Inc., Providence, R. I.
July 22 (letter of notification) 10,000 shares ($20 par)
common.
Price—$23.25 a share. Underwriting—Cohu &
Torrey, New York. For capital improvements and for
working capital.

Atlantic City (N. J.) Electric Co.
March 19 filed 522,416 shares
($10 par) common, being
offered by American Gas & Electric Co.
be

23

(letter

corporate purposes.

Corp., Buffalo, N. Y.

of

notification)

5,400

shares

($1

additions.

par)

common, to be offered to certain key employees of the
company under an employee's stock purchase plan.
To
be sold at market.
No formal underwriting.
Some of
the employees
may purchase the stock with the intent to
resell it.

•

17

common.

Albee

&

Co., Inc., Boston.

For exploration

Underwriters—
by competitive bidding. Proceeds—
of American's plan to dispose of its

com¬

Price—At market.

of mining

both

of

Shares

New

are

York. Price—By amendment. Proceeds—
being sold by a stockholder. Twin Coach Cch,

Kent, O., which will receive all proceeds.
•

Doman-Frazier Helicopters, Inc. (8/4)
July 25 (letter of notification) 5,500 shares of common
stock (par $1).
Price—$1.25 per share.
Underwriter—

Bids

for

a

for

a

John

Rejected—Company July 23,

bids received for the stock.
and

1946, rejected two
Blyth & Co., Inc., and F. S.

associates submitted

4.30% dividend. Harriman Ripley & Co. bid 100.779
4.40% dividend. Indefinitely postponed.

Corp.
Merrill Lynch, Pierce,
Ripley & Co. (jointly).

Inc. out of

and

for

subscription

rate of one share for each

-

Proceeds—Working capital, etc. Offering indefin¬

Claude

^

Neon,

Inc., New York
($1 par)

writing—None.
each

shares
cost

stockholders
held.
of

—The

working

be

on

Price

additional

offered

basis

of

Chicago and other cities




shares). Price

By

—

capital.

East Coast Electric Co.
Mar. 28 filed 60,000 shares of

$10

par common.

Under¬

writers—To be determined
by competitive
able bidders include Harris, Hall & Co.

Under¬

[(Continued

for

stock

on page

biding. Prob(Inc.); Otis &
is being offered

34)

one

by amendment.
interests in oil

Louisville, Ky.

shares

are

of

&

Corporate and Municipal

Price

by amendment.
Proceeds
being sold by Corning Glass Works,

-

Securities

New York, and represent 88.8% of the total
common of the
company.

Offering

outstanding
indefinitely post¬

poned.
•

Pittsburgh

7,371

Underwriters and Distributors

Co., both of New York.

New York

shares)

Drackett,

leases.

Cohart Refractories Co.,

Boston

M.

Co.; Kidder, Peabody & Co. The
common.

Offering—Shares will
common

10

for

Charles

Duraloy Co., Scottdale, Pa.
(letter of notification) 25,000 shares ($1
par)
common on behalf of the
issuer, 12,500 shares ($1 par)
common for
the account of Thomas R.
Heyward, Jr.,
and 12,500 shares
($1 par) common for the account of
Mrs. Thomas R.
Hayward, Jr.
Price—At market (ap¬
proximately $3.25 per share).
Underwriter—Johnson
& Johson,
Pittsburgh, Pa., and The First Cleveland
Corp., Cleveland.
The company will use its
proceed*

Central Soya Co.,
Inc., Fort Wayne, Ind.
Aug. 21, 1946, filed 90,000 shares (no
par) common.
Underwriter—None. Offering—Shares initially will be

March 28 filed 226,454 shares

Cherry,
presently outstand¬

March 12

variety
of purposes in connection with
exploration, sinking of
shafts, diamond drilling and working capital.

itely postponed.

total of 625 such shares

amendment.

Carscor Porcuplna Gold
Mines, Ltd., of Toronto,
Ontario
June 24, 1946, filed
400,000 shares of common. Under¬
writer—No underwriters.
Offering — To the public at
$1 a share in Canadian funds.
Proceeds—For a

ment.

a

Drackett Co., Cincinnati
April 28 filed 14,300 ($1 par) common shares. Under¬
writer—Van Alstyne, Noel & Co.
Proceeds—Stock is
being sold by Harry R. Drackett, President (6,929

delayed.

has abandoned sale of preferred

to common stockholders at
7% shares held.
Unsubscribed
shares will be sold to underwriters.
Price by amend¬

at

ing.

a
cbnstruction credit and term loan of
$9,000,000
which the company has
negotiated with a group of banks.

for

selling stock¬

San

Bids—Bids for the purchase of the securities
scheduled
May 20 and postponed to June 18 further

offered

to

Co., Pacific
Capital Corp., all of Los Angeles; Brush Slocumb &
Co^
Francisco; and Adele W. Parker, Clearwater. To
purchase 493 shares of capital stock of G. H.

March 26 filed
60,000 shares ($100 par) cumulative pre¬
Underwriters—To be determined by competitive
bidding. Probable bidders include: First Boston

for

Proceeds

cumulative convertible first preferred. To be of¬
a
maximum of $26 a share. Underwriters —
Pacific Co. of
California, Cruttenden &

ferred.

It is reported
company

Inc.

March 13
fered

for

Co.

5y4%

California Oregon Power Co.

and Blyth & Co. Inc.
(jointly);
Fenner & Beane and
Harriman,

&

Douglas Oil Co. of California
(letter of notification) 11,500 shares ($25 par)

bid of 100.06

a

Nickerson

holder.

Mar. 28 filed 182,520 shares ($5
par) common.
Under¬
writers—Harriman Ripley & Co., and Lazard Freres &

CORPORATION

or

Divco Corp., Detroit
April 30 filed 34,963 shares ($1 par) common. Under¬
writers—Reynolds & Co. and Laurence M. Marks & COw,

Brooklyn (N. Y.) Union Gas Co.
May 3, 1946 filed 70,000 shares of cumu. preferred stock
($100 par). Underwriters—To be filed
by amendment.

Proceeds—Towards

FIRST BOSTON

All

officers of the company.

share

The

($10

par)
For

No

part of the securities
may be sold through Bennett, Spanier &
Co., Chicago,
as agent.
The shares are being sold on behalf of three

Mo.
par)
27% cent cumulative, convertible preferred and
50,008
shares (10c par) common.
Price—$5 per unit, consisting
of one share of each.
Underwriter—White and Co., St.
Louis, Mo. For expansion of operating facilities and for
Working capital.

subscription to

Corporate and Public Financing

shares

underwriting.

mon.

Brayton Flying Service, Inc., Robertson,
March 24 (letter of
notification) 50,000 shares ($1

determined

Offering is part

5,000

Disticraft, Inc., Chicago
May 8 (letter of notification) 15,000 shares Class B

Mines, Inc., San Francisco
(leter of notification) 65,000 shares (100 par)
Price—$1.25 a share. Underwriting—A. L.

claims.

(Harry W.), Detroit, Mich.

(letter of notification)

common.
Pricer—$12 a share.
additional working capital.

Bonanza
June

Dietert Co.

July 22

a

regarded as a major objective in the best interests of
the company and its shareholders. We look
forward to
the accomplishment of this objective in the near
future."

To

July

Moseley & Co.

July 12, 1946, filed 350,000 shares (no par) cumul. first

immediate

Bell Aircraft

Proceeds—For pay¬

use

Philadelphia, and Sanitary Automatic Candy Corp., New

&

•

Price by amendment.

•

mined by competitive
First Boston
Corp.;

by

—

amendment.

1946,

Detroit Edison
Co., Detroit
June 27 filed
$60,000,000 qf general

due 1962, with non-detachable
subscription warrants for
purchase of common stock.
Underwriter
Name

July 21

9,

Cyprus Mines, Ltd.. Montreal, Canada
May 31, 1946, filed 500,000 shares of common
(par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto. Offer¬
ing—Shares will be offered to the
public at 75 cents a
share.
Proceeds—Net proceeds, Estimated at
$300,008,
will be used for
mining operations.

Steel

June 17 filed

Portland, Ore.

Aug.

of notification)

stock.

None.

Conlon-Moore Corp.,
Chicago

Price—
Proceeds—To pay off
indebtedness and to finance
expansion of business.
Business
Manufacture of
household appliances.

To liquidate bank and commercial
loans
provide additional working capital.

•

mum

33

Joliet, 111., and Mullaney, Ross &
Co., Chicago.

None named.

Dillon, Read & Co. Inc., New York.

Conlon Bros. Mfg. Co., Chicago
July 24 (letter of notification) 1,400 shares of
ferred

F.

•it-'

Par.

Aviation

and

(453)

•

Press, Inc., Tenafly, N. Y. (8/5)
July 28 (letter of notification) 30,000 shares of common
stock (par $2).
Price—$2 per share.
Underwriter—

American
June

Mr

M

July 25 filed $800,000 10-year first
mortgage 4%% sink¬
ing fund bonds.
Underwriters >—

submitted.
•

4'r

ISSUE

price of $2,000.

Net proceeds .will be used to pay current
bank loans and for working capital.

i'

y«i 1*1

Registration

holdings of 1,150,000 outstanding shares of Atlantic City.
The shares remaining after the
public offering will be
distributed as dividends on American's common
stock.
Rids—Bids for the purchase of the stock
submitted July
22 were rejected. A
joint bid by The First Boston Corp.;
Shields & Co.; Drexel &
Co., and White, Weld & Co. of
$17.68 per share and a joint bid by
Dillon, Read & Co.
Inc., and Smith, Barney & Co. of $16.30 per share were

stock.

Underwriters—Herrick, Waddell & Co., Inc., and First
a

JdL' M5'

5% pre¬
behalf of Wm.

(non-cumulative) being offered on
Chiniquy, a director of the company. No underwriting.

To be sold at $25 a share.

Kidder, Peabody ^ Co.
Founded 1865

Members
New York

of the New York and Boston Stock Exchanges
Boston

Philadelphia

Chicago

*

.

J

34

THE COMMERCIAL & FINANCIAL CHRONICLE

(454)

Thursday, July 31, 1947

Offering—The 300,000 shares are
and being sold for the occouni
ot certain stockholders.
Company has also issued 55,000
stock purchase warrants to the selling stockholders at
10 cents a share entitling them to purchase up to Aug, 1,
1949, common stock of the company at $11 a share. Pries
by amendment. Offering temporarily postponed.

Jahn & Oilier

Alstyne, Noel & Co.

Issued and outstanding

NEW ISSUE CALENDAR
(Showing probable date of offering)
July 31, 1947
Thermoid

•

Common

Co

Seattle, Wash.

Goldstone Mining Co.,

Doman-Frazier

Common

Helicopters, Inc

Gundel (J. B.) & Co Inc
___C1.
United States Television Mfg. Corp

Aviation Press, Inc.
Illinois Central RR.„
Stores

Lerner

Rochester

Common
Ctfs.

Equip. Tr.

Telephone Corp. (11 a.m.)

1947

Acme

t-

June

26

deem

Edelbrew Brewery,

Inc., Brooklyn, N. Y.
31,1946, filed 5,000 shares ($100 par) 5% non-cumul.
preferred. Underwriters—None. Offering—To be offered
it par to customers, officers and employees of the com¬
pany. Proceeds — For corporated purposes including
modernization and improvement of the manufacturing
plant and machinery and eauipment

Dec.

Empire Projector Corp., New York
July 1 (letter of notification) 20,000 shares ($10 par)
4 %% cumulative convertible preferred and 20,000 shares
($1 par) common. Price — $10 a preferred share and
$1,315 a common share.
Underwriter—Philip L. Pritchard.
For working capital.
•
Fakes & Co., Fort Worth, Tex.
July 24 (letter of notification 1,076 shares (no par) com¬
mon.
Price—$17.50 a share. No underwriting. For addi¬
tional working capital.

Federal Electric Products Co., Newark,

N. J.
150,000 shares ($1 par) common class A.
Underwriter—E. F. Gillespie & Co., Inc., New York.
Price—$7.25 a share.
The registration states princi¬
Feb. 26, filed

pal stockholder has granted the underwriters an option
"o purchase 45,000 shares of class B
($1 par) common

period of three years.
Proceeds—Proceeds of approximately $870,000, together
vith $755,000 of other bonds, will be used to repay the
oalance of $34,000 of a property mortgage, to pay off
a

loans in the amount of $1,295,000 to Bankers Commer¬
cial Corp., New York, and for additional

•

110,000 shares

La

cumulative pre¬

(no par)

-

.

,

Hutchinson

(Hoge V.)

•

•

.

mon.!/ Undero

■

..

-i..

*>

be offered to the public at $50

,

Offering indefinitely postponed.
,

business.

stock.

Illinois

Telecommunications, Inc., New York

July 22 (letter of notification) 500 shares ($1 par) capi¬
tal stock, on behalf of Wm. G. H.
Finch, President. Price
—$5.50 a share.
Underwriter—Littlefield & Co., Provi¬
dence, R. I., will act as agent.
Florida

Power &

Light Co., Miami, Fla.

June 24 filed 150,000 shares of $100 par cumulative
pre¬
ferred.

Underwriters—Names to be filed by amendment.

Bids—No bids submitted for purchase of stock which

advertized for sale

on

July 29.

A negotiated sale is

was

Proceeds—Net proceeds from the

now

•

Garrison

officers

Price—20

of

the

cents

a

company.

development.
General

share. To be sold

For

mine

j—

through

exploration

and

Portland Cement Co., Chicago

Lazard

amendment.

holders.

-

(no par) preferred stock.

Glore, Forgan & Co. Offering

Stock¬

—

given the right to subscribe to the new
stock at the rate of one share of preferred for each 36
shares of common owned.
Proceeds—The money will be

Sunnyvale, Calif., and for
temporarily post¬

used, to complete a plant at
other

corporate

poned.

Offering

purposes.

:

•„

.

.

;

^Lock Nut Corp. of America, Chicago

a share.
Proceeds—The shares are being
stockholders and represent part of the stock
the sellers will receive in exchange for their holdings
of four furniture companies to be merged with the regis¬
trant. The merging companies are Toccoa Manufacturing
Co. and Stickley Brothers, Inc., both Illinois corpo¬

Price—$9.25

June 17 filed 50,000 shares

sold by four

($12.50 par) 5% cumulative

preferred and 250,000 shares ($1 par) commbn., Under¬
writing—No underwriting.
Price—$17.50 per unit con¬
sisting of one share of preferred and five shares, of com¬
mon.
Proceeds—For payment of outstanding potes and
for purchase of machinery and equipment.

Stickley Bros. Institu¬
Busi¬

■

.-V

both Michigan corporations.
ness.—Furniture manufacturing.

Loew's

c,'

.

.

•

"

:

■

l

'

t.

Inc., New York

June 20 filed 59,676 shares (no par) common. - Under¬
South Beloit, III..}
writing—To be sold at market through regular brokers.
July 28 (letter of notification) 18,460 shares ($10 par) / Offering—To the Public. Proceeds—The shares are becommon.
Price—$10 a share. No underwriting. For
ing sold by Nicholas M. Schenck, President, who will re¬

Industrial Castings Corp*r

Freres.&

Co.r New York.,

Proceeds—Shares

Business—Cement

common.

are

Under¬

Price by

being sold by stock¬

manufacturing

Inglewood Gasoline Co.* Bevorly Hills <
July 7 (letter of notification) 100,414.8 shares ($1 par)
capital stock.
Price—$1 a share. To be offered to, stock¬
holders.
Unsubscribed shares to be offered publicly

Aug. 28, 1946, filed 355,000 shs.
55,000 shs.

exercise of stock

are

($1 par)

common,

reserved for issuance

upon

of
the

purchase warrants. Underwriter—Van




Power

competitive bid¬
ding.- Probable bidders:
Lehman Brothers, Goldman,
Sachs &
Co.
and
The First Boston
Corp.' (jointly);
Halsey, Stuart & Co. Inc. (bond only); Harriman Ripley
& Co., and Dillon, Read & Co. Inc. (stock only).
Pro¬
ceeds—For debt retirement, finance new construction
and for

be

determined

working capital.

by

Coil Corp., Atlanta,

Ga.

(8/11-15)

May 20 filed $50.0,000 5% serial debentures, due' 194919^7; 12,000 shares ($25 par) 5cumulative convert!- j
ble preferred and 85,000 shares ($1 par) common. •>'Un-K'j
derwriter—Kirchofer & Arnold, Inc., Raleigh, N. C. Price
—The debentures at 102.507, while the preferred shares j

working capital.

Co.,

~

proceeds.

^Manhattan

To purchase equip¬

Dubuque, Iowa
May 13 filed $19,400,000 of first mortgage bonds, due
1977, and 3,000,000 shares ($3.50 par) capital stock.
Interstate

Underwriters—To

company.

ceive

»

ment, .liquidate indebtedness, and for

Glensder Textile Corp., New York

which

—

holders will be

July 24 filed 120,000 shares ($1 par) common. Under¬
writers—Brailsford & Co., and Straus & Blosser, Chicago.

working capital.
corn-

-

July 29 filed 100,000 shares ($1 par)
writer

'

Libby, McNeill & Libby

lllinois-Rockford Corp., Chicago

through Bennett & Co., Hollywood.
•

■

'

Mining Co., Seattle, Wash.

July 24 (letter of notification) 1,076 shares (no par)
common.

(8/5)

$10,000,000 20-year sinking
Underwriter—Merrill Lynch,

stock.]

Underwriter

Company has asked the SEC to defer action on its fi¬
nancing program because of present market conditions.

•

possible,

develop mining

Corp., Baltimore, Md.

amendment)

April 30 filed 100,000 shares

demption of 5% cumulative convertible preferred stock
not converted into common prior to the redemption
date.
The balance will be added to treasury funds.

rations, and the Luce Corp. and

Stores

18 ,(by

ferred

of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re¬

tional Furniture Co.,

Proceeds—To

Piefce, Fenner & Beane, N. Y. Price by amendment.
Proceeds—To repay bank loan and provide. funds or
reimburse Treasury for funds used for expenditures, etc.
[Originally company filed 100,000 shares ($100 par) pre¬

Probable bid¬
include Blyth & Co., Inc.; The First Boston Corp.;

sale

•

*

—

share.

a

fund debentures due 1967.

Underwriters—By competitive bidding.
W. E. Hutton & Co.

cents

Lerner

July

Decatur, III.

June 17, 1946 filed 200,000 shares ($50 par) cumu. pre¬
ferred stock and 966,870 shares (no par) common stock.
ders

;

properties. Business—Mining.

capital.
Power Co..

The 3,000 shares

shares ($1 par) common treasury
To be supplied by amendment.

Underwriting

Price—50

July 21 (letter of notification) 6,000 shares ($1 par)
Ciass A stock.
Price—$4.50 a share.
No underwriting.
For working

share.

Legend Gold Mines, Ltd., Toronto,< Canada

June 27 filed 300,000

Co., Los Angeles, Calif.

(Edward)

a

officers and employees at $5 each.
Proceeds—For' con¬
struction of new plants at Atlanta and Memphis, Tenn.

Ariz.

Hyman

Inc.,

Co.,

&

publicly will be offered to Company

of coihmon not sold

July 23 (letter of notification) pre-organization subscrip¬
tion for 10,000 shares of common of "Veterans' Small
Business Inc."
Price—$10 a share.
No underwriting.

•

Evans

Offering—All but 3,000 shares of the common
will be sold publicly at $6.50 a share. The preferred will

Sunset Ranch, Tucson,

To establish veterans in their own

A.

Atlanta.

.

k

■

Inc.,

& Co., Inc., Atlanta

(H. W.)

Lay

Grays Harbor County, Wash., on the basis of one share
each acre of land deeded to the company.

underwriting.

Co.,

April 18 filed 16,000 shares ($50 par) 5% cumulative
convertible preferred and 15,000 shares ($1 par) com¬

(letter of notification) 3,085 shares ($10 par)
Shares to be exchanged for acreage of land in

of stock for

•

Manufacturing

Plant-Choate

Cedar

current bank loans.

Wash.

No

Under¬

Rapids, Iowa
April 30 filed 60,000 shares ($25 par) 5% cumul. con¬
vertible preferred. Underwriter—Paul H. Davis & Co.,
Chicago. Price—$25 per share. Proceeds—To be added
to working capital and will be used in part to reduce

Humptulips Oil Development Co., Seattle,

common.

To be sold at market.

Electrochemical Co.

filed

working capital.

Finch

>

Langendorf United Bakeries, Inc., San Francisco

Langendorf, deceased.

outstanding shares of $4.25 cumulative no par pre¬

July 21

®

Co., Winona, Minn.

writer—Walston, Hoffman & Goodwin, San Francisco.

$104 a share and for construction expenditures.
Offering indefinitely postponed.

poned indefinitely.

share, exercisable for

•

ferred at

by East Coast Public Service Co., parent. Bids for pur¬
chase of the stock scheduled for May 19 has been post¬

a

Koch Chemical

July 22 (letter of notification) 3,000 shares of Class "B"
stock being offered on behalf of the estate of Bernard

ferred, series A. Underwriting—Smith, Barney & Co.,
New York.
Price—By amendment.
Proceeds—To re¬

Common

—_

(Continued from page 33)

$7.25

Corp.,

toward

•
LaCrcsse Telephone Corp., Chicago
July,22 (letter of notification) 10,693 shares of common*
Price—$12 a share. No underwriting as yet. For prop¬
erty additions and replacements.

copters and equipment and for working capital.
Hooker

tt

Chicago

Co.,

proceeds will be used to pay obligations, purchase heli¬

1947

San Francisco Bank-—,.

Instrument

Helicopter Air Transport, Inc., Camden, N. J.
14 filed 270,000 shares of capital stock.
Under¬
York. Underwriters may
withdraw as such. Price—$3.50 a share. Proceeds—Net

Special Stock

——

August 27,

Boston

First

(letter of notification) 60,000 shares ($1 par)
common.
Price-—$5 a share. Underwriter—H. P. Carver
Corp., Boston.
To retire debt and for working capital.

March

August 15, 1947
Baltimore Markets, Inc

•

writer—Strauss Bros., Inc., New

r

•

a

derwriting—Paul H. Davis & Co., Chicago.

'

(11:30 a.m.)-Preferred

'

(8/4)

($1 par) com¬
mon, being sold by Laurens Hammond, President of the
company.
Prices to be determined at time of sale. Un¬

Corp.
Common
Engraving Co
Common
Manhattan Coil Corp.____Debs., Pref. and Common

1947

& Co., Inc., New York

(J. B.)

Hammond

Electric

Potomac Electric Power Co.

The

with

July 16 (letter of notification) $100,000 of

Jahn & Oilier

August 13,

Gundel

writing. T6 place mortgage loans on

1947

August 11,

competitive

announced July 25 that the company has

July-, 22

$20

—Equip. Tr. Ctfs.

—

was

conversations

underwriting the stock. Offering—Preferred stock initially-will be offered in exchange for outstanding ($100
par).~6% preferred and ($50 par) junior preferred. The •
basis, of exchange will be one share of new preferred
for each share of 6% preferred and one share of new
preferred for each two shares of junior preferred. Shares
of new preferred not issued in exchange will be sold at
competitive bidding.
Proceeds—Proceeds from the" sale
of new preferred will be used to redeem unexchanged
shares of old preferred. Bids—Bids for purchase of stock
advertised for July 14 postponed.

•

Delaware Lackawanna & Western RR.

Noon—

It

Lehman Brothers and Lazard Freres Co. (jointly)

Inc.,

loans.

Debentures
Preferred

Corp

August 7,

Underwriters—To be determined by

bidding.
instituted

Class! A share and $50 a Class B common. No under¬
homes, finance im¬
provements and for other real estate activities.

1947

August 5,

ferred.

July 25 (letter of notification) 10,000 shares of Class A
common and 2,000
shares of Class B common. Price—

Common

Co

Upson

Society,

Under¬

Price—By

Kentucky Utilities Co., Lexington, Ky.
May Defiled 130,000 shares ($100 par) cumulative pre¬

.

New York
April 2, 1947 (by amendment) 170,000 shares of $1 par
common stock. Underwriters—Riter & Co. and Hemphill,
Noyes & Co. Offering—Underwriters will purchase from
the company 70,000 shares and from Fred P. Murphy
and J. C. Graham, Jr., 100,000 shares of issued and out¬
standing common.
Proceeds—For reduction of bank
Grolier

A and CI. B
Preferred

common.

amendment. Proceeds—The shares, which constitute ap¬
proximately 48.5% of company's outstanding common
stock, are being sold to stockholders.

mining property.

and equipment to develop

ery

(8/11)

($1 par)

writer—Sills, Minton & Co., Inc., Chicago.

July 22 (letter of notification) 1,000,000 shares of stock.
Price—25 cents a share. No underwriting. For machin¬

August 4, 1947

Engraving Co.

Feb. 26, filed 102,000 shares

>

•

will

be offered

at par and the common shares at $4 j
retire bank indebtedness and to j

each.#!Proceeds—To

finance purchase of machinery and other plant equip- |

menjpv
jSlanontqueb

Explorations, Ltd., Toronto, Can.
-Underwripr—F. H. Winter & Co. Price—40 cents a share.
Pre^eds~-For exploration and development of mining

Apfej.0
claims.

filed 300,000 shares ($1 par) common.

Business—Mining.

.

.

.

Volume 166
•

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4616

from

Marketing Publications, Inc., New York

*

t

Public Service Co. of New Hampshire,

•

Maryland-Virginia

Building Corp.,

Service Caster & Truck
Corp., Albion, Mich.
April 10 filed 32,000 shares ($25 par) $1.40 convertible
preferred and 53,962 shares ($1 par) common.
Under¬
writer—Smith, Burris & Co., Chicago. Price—$25 a pre¬

July 28 filed for an unspecified amount of ($10 par)
common a total of 565,553 shares are now owned by New

Baltimore,

Md.

tion expenses.

Manches¬

ter, N. H.

purposes.

England Public Service Co.
Underwriters — Names by
Probable bidders include: The First Boston

v

(letter of notification) 30,000 shares ($10 par)
Price—$10 a share.
No underwriting.
For
the erection of homes and office buildings in both Mary¬
land and Virginia.

Mays (J. W.) Inc., Brooklyn, N. Y.
yeb. 28 filed 150,000 shares ($1 par) common. Under¬
writer—Burr & Co., Inc., New York. Price by amend¬
ment. Proceeds—Of the total, 100,000 shares are being
aold by seven stockholders. The remaining 50,000 shares
are being sold by the company, which will use its pro¬
ceeds for general corporate purposes.

ferred share and $10 a common share.

amendment.

enforcing its corporate simplification plan approved by
the SEC last June.
The sale of stock is in connection

July 24

with the plan.

Quebec Gold Rocks

Exploration Ltd., Montreal

Nov. 13, 1946, filed 100,000 shs. (500 par) capital stock.
Underwriter—Robert, B. Soden, Montreal, director o!

McPhail

March 25 filed 25,000 shares of 60 cents cumulative con¬
vertible preferred. Underwriter—Floyd D. Cerf Co. Inc.,
Chicago. Offering—The shares initially will be offered
for subscription to common stockholders of Segal Lock

•

,

son
Ward, President, as compensation for services.
Proceeds—To acquire property and construction of club
facilities.
1
.

Rancho

Dillon &

amendment.
loans.

Co., New York. Price by

diamond

drilling and land

surveys.

f

Reed-Prentice Corp., Boston, Mass.

July 22 (letter of notification) 2,500 shares ($2.50 par)
common on behalf of Charles S. Payson, Vice-President
of the company. To be sold at market through Tucker,
Anthony & Co.

Refrigerated Cargoes, Inc., New York
.

Feb. 3 filed 25,000 shares ($100 par) 6% cumulative pre¬
ferred and 25,000 shares (no par) common. Underwriter*
Martin

Rolph,

Vice-President and director of

company.
Price—The stocks will be sold at $105 per
Unit consisting of one share of preferred and one share
of common. Proceeds—To be used in organization of

business.

For expansion of plants and for equipment.

Strauss

Fasteners

& Hardware Co.

of

Yavapino, Flagstaff, Ariz.

July 21 (letter of notification) 1,500 shares ($100 par)
5% preferred and 3,000 shares ($1 par) common.
Price
—$100 a preferred share and $1 a common share.
To be
sold through Neill F. McGaffey, President; Georgia L.
McGaffey, Secretary and Treasurer; and J. Peter Ver
Cruisse, of Phoenix. For construction and furnishing of
guest ranch.

—John

Morris Plan Corp. of America, N. Y.
Mar. 31 filed $3,000,000 debentures. Underwriter—East¬

Red Lake Mines,

ceeds—To finance

Reef

Proceeds—To retire outstanding bank

Underwriter—Scott, Horner & Mason, Inc., Lynchburg,
Va.

Raleigh

Properties, Ltd., Antigua, Leeward
islands, British West Indies
June 26 filed $780,000 (B. W. I.) of unsecured debentures,
due 1977, 3% interest after Jan. 1, 1950; and 8,500 shares
of $1 (B.W.I.) par capital stock.
Underwriting—The
shares may be sold through officers and directors of the
company. Price—Per unit: $6,000 B. W. I. ($5,100 U. S.)
debentures and 60 capital shares. The company will;
issue an additional 700 shares of capital stock to Robert¬

man,

and 10 shares will be sold to underwriters at
$10 a share.

Ltd., Toronto, Can.
June 9 filed 460,000 shares of stock. Underwriter—Mark
Daniels & Co., Toronto.
Price—25 cents a share. Pro¬

Candy Corp., Chicago

July 25 filed 100,000 shares ($10 par) 5^2% cumulative
convertible preferred and 200,000 shares ($1 par) com¬
mon.
Underwriters—Brailsford & Co., and Shillinglaw,
Bolger & Co., Chicago.
Price — $10 a preferred share
and $6 a common share.
Proceeds — Company will re¬
ceive proceeds from the sale of preferred only and Will
use it to pay .off bank loans, buy new equipment and for
working' capital. The common stock is being sold by >
Russell McPhail, President.
Business—Candy manufac¬
turing.
Mill

,

Sta-Kleen Bakery,
Inc., Lynchburg, Va.
July 18 (letter of notification) 100,000 shares of com¬
mon of which 45,500 will be
exchanged for outstanding
common, 45,450 shares will be issued as a stock dividend,
9,090 will be sold to existing stockholders at $10 a share

Price—500 a share. Proceeds—For explora¬
tion and development of mining property.
company.

•

Proceeds—Pro¬

ceeds, together with funds to be provided by a term bank
loan, will be used to discharge indebtedness to Domestic
Credit Corp.

Corp.; Kidder, Peabody & Co.; Blyth & Co., Inc.; Harriman Ripley & Co.
Offering—The number of shares and
terms Of offering will be determined by New England as
soon as the U. S. District Court of Maine issues an order

common.

35

writer for 1,300 shares. The remaining 120 shares will
not be underwritten.
For working capital and organiza¬

1951/Price—Par. Proceeds
$11,500,000 of bank loan notes.

May 1,1947, to Dec. 31,

For repayment of

July 25 (letter of notification) 750 shares ($100 par)
6% cumulative preferred and 750 shares ($1 par) com¬
mon to be sold at par.
No underwriting, For expansion

(455)

Inc., New York

Inc., parent, at $9

a

share in the ratio

share of preferred for each. 30 shares of Segal
held.
Unsubscribed shares of preferred will be

one

common

offered publicly at $10 a share. Proceeds—For additional

working capital.
Textron Inc., Providence, R. I.
Feb.

28

filed

preferred.
and

300,000 shares

($25 par)

5%

convertible

Underwriters—Blair & Co., Inc., New York,

Maxwell, Marshall & Co., Los Angeles.

amendment.

Price by

Proceeds—For

payment of $3,950,000 oi
notes; purchase of two notes issued by a sub¬
Textron Southern Inc. in the amount of $1*

bank loan

sidiary,
000,000 each,

and

for

working

Offering date

capital.

indefinite.
Thermoid Co., Trenton, N. J.

(7/31)
($1 par) common. Under¬
writing—Blyth & Co., Inc., New York. Offering—Of the

June 27 filed 161,626 shares

total, 111,626 shares will be offered in exchange to stock¬
holders of Asbestos Manufacturing Co, on the basis of
two shares of Thermoid

common

for

one

share of Amco

cumulative convertible preference stock and one share
of Thermoid common for four shares of Amco common.

The

•

N. W.

Buyers & Jobbers, Inc., St. Paul, Minn.

Republic Pictures Corp., New York
Registration originally filed July 31,1946, covered 184,823
July 22 (letter of notification), 2,000 shares ($50 par)
shares of $1 cumulative convertible preferred ($10 par)
common.
Price—$50, a share.
No underwriting.
To
and 277,231 shares (50c par) common stock, with Sterling,
finance increased costs of inventory.
»
Grace & Co. as underwriters. CoiApany decided to issue
Nickel Cadmium Battery Corp., Easthampton,
454,465 shares of common stock only, which were to be
'Mass.•+
offered for subscription to stockholders <*£. record Sept.
June 2 (letter of notification) 30,000 .shares ($10 par>«* 5, 1946, to the extent of one share for each five held.
6% cumulative convertible
preferred.
Price—$10 "a? Issue not to be underwritten.
share.
Underwriter—Harrison White, Inc., New- York.
•
Proceeds—To be added to general funds for general cor-;
Resort Airlines Inc., Southern Pines, N. C.
y,f
porate purposes,
July 28 (letter of notification) 13,300 shares of common.
Price—$2.25 a share.
No underwriting.
For operating
Old Poindexter Distillery, Inc.,
Louisville/Ky«
,

,

remaining 50,000 shares will be offered publicly.
sale will be used
purchase 90,000 shares of Amco common for $225,000
which will assure it voting control of Amco, The baL
ance
of proceeds will be added to working capital.

Proceeds—Proceeds from the public
to

Thomascolor Inc., Los

•

Angeles

*

July 9 filed, 1,000,000 shares ($5-par) class A common.
Underwriter—No
underwriting.
Price—$10 a share.
Proceeds—TO
purchase production facilities and for
working capital.
•

f

United States Construction Co.,

Inc., Washing¬

ton, D. C.

■

Mar.

31 filed

50,000 shares ($20 par) 5% convertible
cumulative preferred and an unspecified number; df ($1
par) common shares into which the preferred is conver¬
tible.
Underwriters—F. S. Yantis & Co., and H. M.

capital and equipment purchase.
•

Revere Racing Association, Inc., Boston

■--To be added to working capital.

Byllesby & Co., both of Chicago. Price—At par. Proceeds
Offering indefinitely

July 29 filed 140,000 shares (no par) common.
Under¬
writer—Bonner & Bonner, Inc., New York.
Price—$5.75
a share.
Proceeds—The shares are being sold by stock¬
holders who will receive all net proceeds.
Business-

postponed.

Operation of

Oneida, Ltd., Oneida, N. Y.
May 27 (letter of notification) 20,500 shares ($12.50;par)
tommon.
Price—$12.50 a share.
Offered at par to

Rochester (N. Y.) Gas & Electric Corp.
May 26 filed $16,677,000 first mortgage bonds, Series L,
due 1977, and 50,000 shares ($100 par) preferred stock.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; Glore, Forgan & Co.; Merrill Lynch, Pierce, Fenner
& Beane; Harrjman Ripley; Lehman Brothers; The First
Boston Corp. and Smith, Barney & Co. (jointly).
Pro¬
ceeds—To redeem all of its outstanding $7,675,000 bonds
and to repay $3,500,000 bank loan and to finance new
construction.
Corporation hqs temporarily abandoned
the proposed financing, it was announced June 17, due
to "unacceptable" conditions of New York P. S. Commis¬
sion. Instead company June 18 asked SEC permission

common

Stockholders of record June 13 at rate of one

share for each 10 shares held.

new

No underwriting.

Rights expire Aug. 13.
For additional working capitals

Plywood Inc., Detroit
July 18 filed $500,000 5% sinking fund debentures, due
1967, and 200,000 shares ($1 par) common. Underwriter
—P.* W". Brooks & Co., Inc., New York, is principal un¬
derwriter for debentures and Baker, Simonds & Co.,
Detroit, is principal underwriter for the common. Price
—Debentures will be sold at par with a 9% discount to
underwriter while
with

a

common

will be sold at $2

a

share

discount of 30 cents;a share to the underwriters.

pine Plywood. Co., Klamath Falls, Ore., and to retire

Potomac Electric Power

Co.

July 10 filed 140,000 shares ($50 par) preferred, entitled
to cumulative dividends.
Underwriting—To be deter¬
mined by competitive bidding.
Probable bidders in¬
clude Drexel & Co.; Kidder, Peabody & Co.; The-First
Boston Corp.'; Dillon, Read & Co., Inc. Offering—Stock
will be offered in exchange for outstanding 5 %% pre¬
ferred, series of 1927, in the ratio of two shares of new
preferred for each old preferred share, plus cash adjust¬
ments. Shares of new preferred not issued in the ex¬
change will" be sold to underwriters.
Proceeds-/The
new

.stock* will be issued for the purpose of refinancing
a lower dividend rate.
CasK

ceeds

will be used to

^ro-

make

the

cash

adjustmentsjand

to repay

temporary bank loans made for the purpose Of
redeeming'old preferred shares.
Bids—Bids for-pur¬
.

chase of stock will be received up to 11:30 a.m. '(EDT)
August 13 at Room 1961, 60 Broadway, New York,: /

Public Service Co. of Indiana Inc.
March 26 filed $11,077,800 15-year 2%% convertible/de¬
bentures.
Underwriters — None.
Offering — Common
Stockholders of record July 16 will be given right td Sub¬
scribe in the ratio of $10 principal amount of debentures
for each share of common held.

18.

The

debentures

will

be




Rights will expire Ahg.
intq cohiipon

convertible

Rochester
June

4 filed

(N. Y. ) Telephone Corp. (8/5)
($100 par) cumulative pre¬

67,500 shares

Kidder, Peabody & Co. (jointly); Blyth & Co., Inc.;
Glore, Forgan & Co.; Shields & Co. Proceeds—To redeem
4Y2% series A first cumulative preferred, pay off de¬
mand notes, and for property expansion and conversion
of telephone system from manual to automatic dial oper¬
ation in Rochester.
Bids—Bids for purchase of the stock
will be received up to 11 a.m. (EDT) August 5 at Room
1922, 15 Broad Street. New York, N. Y.
•

Royal Imprints Inc., Lewisburg,

Corp". (8/4-6)

Co., Inc. and Mercer Hicks & Co. Offering—To be of¬
Proceeds—For general corporate purpose^
as additional working capital.
Registration statement is
expected to become effective this week.
fered at par.

United Utilities &

Specialty Corp., Boston

75,000 shares ($10 par) 5% cumulative
Underwriter—Herrick, Waddeil
& Co., Inc., New York.
Price—$10 a share. The under¬
writers will receive a commission of $1.50 per share. lp
addition, they will be granted warrants fo purchase 50.000 shares of the issuer's common at $5 a share.
Pro¬
ceeds—For additional working capital.
July

10 filed

convertible preferred.

•

Upson Co., Lockport, N. Y. (8/4)
(letter of notification) 1,800 shares ($10 par),
common, being offered on behalf of Charles A. Upsou.
board chairman of company. To be sold to underwriter,
Hamlin &

Lunt, Buffalo, N. Y., at $16.50 a share an.i

offered publicly at market.
Utah Chemical & Carbon Co.

5% 15-year convertible debentures
shares ($1 par) common. The state¬
112,000 shares of common reserved foi
conversion of the debentures.
Underwriter—Carver &

Dec. 20 filed $700,000
due 1962, and 225,000

ment also covers

Co., Inc., Boston. Price—Debentures 98; common $3.75
share. Proceeds—For plant construction, purchase
of equipment and for working capital.
Registration
per

statement became effective June 28.

Pa.

July 17 (letter of notification) 10,000 shares ($10 par)
5% cumulative participating preferred.
Price—$10.50 a
share.
Underwriter—S. M. Walter & Co., Harrisburg,
Pa.
For retirement of bank notes and for working
capital.
Salant &

Salant, Inc., New York
March 28 filed 240,000 shares ($2 par) capital stock.
-Underwriter—Eastman, Dillon & Co., New York. Price
by amendment. Proceeds—Shares are being sold by 13
stockholders who will receive proceeds.

Sanitary Products Corp., Taneytown, Md.
25 (letter of notification) 1,420 shares ($50 par)
cumulative Convertible preferred.
Price—$50 a share.
Underwriter—Jackson and Co., Boston, will be under¬

June

United States Television Mfg.

June 18 filed 75,000 shares of 5% convertible preferred
stock (par $4). Underwriters—William E. Burnside &

July 25

ferred. Underwriting—By competitive bidding. Probable
bidders—Merrill Lynch, Pierce, Fenner & Beane and

(8/13)

the old preferred at

dog racing track at Boston.

to issue unsecured notes.

Proceeds—To purchase all the outstanding stock of Kal-

bank indebtedness and for working capital.

a

July 24 (letter of notification) 100 shares (no par) com¬
mon and 2,000 shares (no par) preferred.
Price—$1,003
a common share and $100 a preferred share.
To be sol t
through officers and directors of the company.
For
general contracting and construction business.

Vauze Dufault Mines,

Ltd., Toronto, Canada

Mar. 31 filed 500,000 shares ($1 par) common.
Under¬
writer—Name to be filed by amendment. Price—50 cents
a share.
Proceeds—For general operating expenses.

Victory Chemical Co., Inc., Buffalo
July 18 (letter of notification) 2,000 shares ($100 par)
6% cumulative first preferred; 500 shares ($100 par) 5%
cumulative second preferred and 2,500 shares (no par)
common,
Price—$100 for each > preferred share.
The
common will
be exchanged for presently outstanding
common on the basis of five shares of new common for
each share of old common.

No underwriting.

outstanding Obligations and for working capital.

(Continued on page 36)

To pay

THE COMMERCIAL & FINANCIAL CHRONICLE

(456)

36

and

(Continued from page 35)

j

,

•

(letter of notification)
Price—15 cents a share.

mon.

develop mining property.

writers—Blair & Co., Inc. and Wm.

Under¬

•

Madison, Wis.

Power & Light Co.,

Wisconsin

West

North

of

Co.

Utilities

Western

Salt

Mining & Development Co.,
Lake City, Utah
Price—25 cents

Underwriter—H. A.

share.

a

(50 par)

250,000 shares

(letter of notification)

common.

Emery & Co., Salt Lake City. To purchase mining equip¬
ment and supplies and for working capital.

May 21 filed 550,000 shares ($10 par) common stock t«
be
sold
at
competitive
bidding.
Underwriters—B*

Proceeds—To retire preferred stock

subscription rights.

dissolution

July 23

Weber's

&

Harriman

and

capital surplus.

stockholders. Certain shareholders have waived

common

To

July 21 (letter of notification) 10,000 shares ($10 par)
capital stock. Price—$20 a share. No underwriting. For

R. Staats Co. Offer¬

ing—Shares will be offered for subscription to

par)

Dalton, Ga.

Insurance Co.,

Life

Whitefield

Co., Inc.

108,763 shares ($5 par) common.

Mar. 31 filed

Helena, Mont.

Casualty Co.,

Probable bidders include Glore, Forgan

Ripley & Co. (jointly); The Wis¬
consin Co.; Dillon, Read & Co., Inc.
Proceeds—Part
of the shares are to be sold by Middle West Corp.,
top holding company of the System, and part by prierence stockholders of North West Utilities Co., parent
of Wisconsin, who elect to sell such shares of Wisconsin
common
which will be distributed to them upon the
Co.,

(letter of notification) 1,997 shares ($100
common.
Price—$150 a share.
No underwriting.
finance stock casualty insurance company.

To be sold through di¬

Weber Showcase & Fixture

amendment.

16 that the

July 16

1,000,000 shares of com¬

For machinery and equipment

rectors of the company.
to

States

Western

Seattle, Wash.
July 22

Reported July

loans.

present plans will be entirely changed.

Lead Mining Co.,

Eagle Gold Silver

War

bank

reduce

to

Thursday, July 31, 1947

Prospective Security Offerings
(NOT YET IN REGISTRATION)

ISSUE

INDICATES ADDITIONS SINCE PREVIOUS

•

stockholders

23

shares

will

be

purchased

heim

Glore, Forgan & Co.

(8/7)

& Western RR.

•

company

000
Co.

•

•

new

each

will

Building Corp.
John C. Knox postponed until
Aug. 4 his determination on the submission of three
underwriting offers to the stockholders of the corpora-

Stuart

•

Government,

,

'

'

i

.

BUFFALO

•

&> Co.

•

CHICAGO

CLEVELAND

•

ST. LOUIS

RR.

which

(8/5)

Central

New

G.

U.

•

of

preferred

which

stock

the

Investment

tremely

bankers

cautious

are

the

in

ex¬

have

(Inc.); Salomon

•

►

cash

plus

basis,

ad¬

justments.

matter

a

not

because

The

City of Cleveland ran into
snag when its Transit Board
sought to market $22,000,000 of
a

•

don't want to
do
the
business
but,
as
they
first mortgage bonds. Here again
bluntly put it, "because they don't
bankers were disinclined to bid
like the risk'of being 'hung' with
they

issue."

an

The

current

The

week

underwriters contend that
public just won't buy pre¬

the

brought

further evidence of the

difficulty
face at the

ferred

stocks',

which

ascribe

to

to

price such issues when forced to

corporations
moment in seeking
ditional

few weeks

a

Utilities

Co.

attempts to market
130,000

ago

of

shares
In

neither

as

The

a

now

out

some

"buyer's"
at least partially a con¬
a

the

Commission would

Securities

and

job of

Public
as

selling, preferreds.
Service

Service

encountered

of Colorado

Co. of Colorado

distinctly different
situation in marketing a block of
160,000 shares of $100 par cumula¬
tive

a

preferred.

This

company received bids
two
hanking syndicates '
with the successful group pay¬

from

Ex¬

ing

a

sanc¬

price of $100

a

a

Only the other day a second
utility. Florida Power & Light
Co.

was

able to

mortgage

new

debentures,
but

in

bankers

making

sell

a

equal

an

The

stock

yesterday,

the

board

has

Bankers shied away from

business

gent

by

because

terms

the city

and

of

the

a

price of 100

and

underwriting

spe¬

way

was

at

publicly offered

par

and

accrued

this
set

a

mini¬

among

other

Brisk

Bidding

ers' ideas of pricing and coupons
was a bit more varied.
The win¬

ning group specified

ferred,

t
t

*

outstanding

totaling

62,199

pre¬

shares,

a

3 %% cou¬

Bankers still go strong for what
men
refer
to
as
"street-

a

3^% coupon.

.c'u. t

i

Halsey Stuart Group
Offers Central

in

Equips.

re-offered

by the group, subject to
Commerce
Commission

Interstate
authori¬

The

prices to yield from
2.30%, according to ma¬

at

s?

C C )

c-'Ci..

the

Softball League, has
the
New
York

Street

that

ditionally guaranteed by the New
York Central RR. as to par
and dividends

rV

u

\

twin bill

a

value

of

; f

,'Lv

v-

34

\

i. z

*!•

s

J 1

Thursday, July

Heading the league at the close
the season, the Curb defeated

F. V.

Foster's ten

2-0

and

4-0

in

the

playoffs last Thursday night
with Johnny Bertuzzi pitching the
double shut out. They gained the
right to meet Josephthal & Co.
who

eliminated

Rhoades &
with
If

two

Carl

Co. from

5-2

M.

the

victories.

Loeb,

playpffs
■

third game is necessary the
two clubs will meet in a deciding
a

encounter the following
The

winning

symbolic

the J.
of

supremacy.

has

walked

since

the

years

by endorsement on

on

31, to determine the league cham¬
pionship.

awarded

certificates will be uncon¬

I each certificate.

1

Wall

Harris

of

Exchange
would
engage
Josephthal & Company's tossers

turity.

$10,000,000 issues.

1s

Championship Playoff

Curb

ing $10,000,000 to $20,000,000. This

Light Co.'s two

be

Soft Ball League

100.3412 for

1.25% to

Power &

will

provide for approximately
75% of the cost, estimated to be
$12,867,800, of the following new
standard-gauge
railroad
equip¬
ment:' 3,000 55-ton steel box cars;
two 2,000 H. P. Diesel road freight
locomotives; and four 2,000 H. P.
Diesel road passenger locomotives.

announced

zation,

made clear by the keen com¬

issue

the

..

used to

Anthony J. Shields of
Upham & Co., President

bond

was

"iT

.

and fixed a price of 100.19.
second
bid, for 3%s, was
101.039 while the third group bid

plan, were immediately
Here

Florida

company's

bids

three

debentures

1

entered and here the bank¬

Halsey, Stuart & Co. Inc., and
Next Tuesday the City of Chi¬ associates were awarded yesterday
cago is scheduled to offer $105,- (Wednesday) $9,400,000 New York
second
equipment
000,600 of transit bonds. In this Central RR.
instance the authority has fixed trust
of 1947, 2%%
equipment
a
minimum price of par, but is trust certificates, maturing $940,leaving the coupon rate up to the 000 annually Aug. 15, 1948 to
bidders, specifying only that it 1957, inclusive. The certificates,
must be in multiples of Vs.
issued
under
the
Philadelphia

the

from

the
the

The

petition which marked the sale of

amounts,

bids ranged

101.8907
to
100.411

from

down

the

For
were

sized deals," that is issues involv¬

com¬

All specified

and

coupon

pon

maximum

3% and

less than eight

strin¬

conditions

fixing

no

groups.

of

Proceeds

first mort¬

of the

case

White, Weld & Co.

lowest.

on

to act.

morrow

curities Corp. and

highest,

to¬

until

dividends from June 1. Holders of

bid for 150,000 shares




which

share for

mission of $2.91 a share.

$20,000,000
bonds
and

refrained

dividend rate

cifying

tion.

of

conditional bid for the issue

Gas Transmission Co.

400,000 shares and the common from 2,255,000 to 5,000,000
shares.
Probable underwriters: Stone & Webster Se¬

things.

reported

change

group

mum

bankers

which

one

interest rate of

looking to¬
possibility of working
sort of negotiated deal

the

ward

bit

a

was

able to attract

is

are

indicative of

Public

single bid.

company

or

Some

whether to regard the

that

however,
submitted
a

reported,

was

the

to be discussing the situation with
investment

as

bidding
case

they
over¬

a

It

sequence of salesmen's dislike for

preferred

channels.

company

two

"situation

tendency to

them.

strike,

Ken¬

the

on

matter

issue of

competitive

for

puzzled

made
an

through
the

bid

the

of

Only

much

ad¬

capital
through
preferred stock.

medium

tucky

raise

the terms offered.

on

Tennessee

July 15 stockholders, with a view to facilitate additional
financing, voted to change the State of incorporation to
Delaware and to increase the preferred from 150.000 to

bonds, due 1977, the issue

the

for authority to

asked 4he ICC

$11,400,000 equipment trust certificates, series V,
to be dated Aug. 1, 1947, the proceeds to be used to
finance new equipment estimated to cost $15,266,286.
Probable
bidders include
Halsey Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Harris, Hall & Co. (Inc.).

the

.3%

all

the'company

28

issue

competing

Snag

Southern Pacific Co.

sought by

was

Hits

Cleveland

of

taking on preferred shares by
way of competitive bidding. It is

In
gage

(8/27)

C.

July

proposals for the purchase of the

prior right to exchange on

.

Clark, Attorney General of the United States,
the purchase, as a whole, of 20 shares
of common stock (par $1,000) (five-sixths paid).
The
shares constitute approximately 1.666% of the outstand¬
ing capital stock of The San Francisco Bank, 526 Cali¬
fornia Street, San Francisco, Calif.
Bids for the shares
must be presented at office of Alien Property Depart¬
ment of Justice, 120 Broadway, New York 5, N. Y., on
or before noon (EDT) on Aug. 27.

RR.

pro-rata

a

shares of preferred stock (par $100) of
bearing a dividend rate of 3V2%
through F. Eber-

shares

invites bids for

shares. Persons interested in bidding for the stock should
advise H. A. Bush, Comptroller, G. P. U., .Room 2401,

company also sought to market.

& Co.

Francisco Bank

San

Tom

asked the ICC for authority to issue

written

50,000

stadt & Co. Inc.

England Gas & Electric Association

P.

(Chas.)

will be sold to institutional investors,

1

company

Pfizer

issue of 200,000

Inc.; Harris, Hall & Co.

FRANCISCO

SAN

•

•

Sept. 3 stockholders will vote on creating an authorized

July 23 General Public Utilities Corp. announced that
it intends, by telegraphic notice, to invite prospective
bidders, who shall have indicated their interest in pur¬
chasing 311,361 shares of New England stock, to submit

YORK

PITTSBURGH

Co.

Hutzler.

Illinois

to
•

share

offering

Harris, Hall & Co. (Inc.).

V

-

inc.

•

new

of

$11,360,000 equipment trust certificates, series Y, the
proceeds to be used in connection with the purchase of
$14,214,609 in new equipment. Probable bidders include
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;

Corporate Securities

BOSTON

&
&

July 25

State, Municipal and

PHILADELPHIA

one

details

and

announced shortly.

be

Bros.

NEW

basis of

on

Date

presently sell an instalment of $1,200,000 of the series X
certificates in order to purchase 400 50-ton hopper cars.
The total program will cover the purchase of 1,400 hop¬
per cars. Certificates are to be sold at competitive bid¬
ding (noon) Aug. 5.
Probable bidders include: Halsey,

Federal Judge

Blair

original

July 21 company has asked the ICC for authority to issue
$4,400,000 of series X equipment trust certificates to be
dated Aug. 1,
1947 and to mature in 20 semi-annual
instalments.
The road asked permission to issue and

Equitable Office

*

to be issued

shares held.

10

Illinois Central

company

United States

shares

for

Inc.; Harriman Ripley & Co.

July 23

application by the company for permission to issue
$40,000,000 of debentures.
Most of the proceeds would
be used to repay advances to company's parent, Amer¬
ican Telephone & Telegraph Co., which amounted to
$32,100,000 on June 30. The borrowed money was used
for a new plant.
Probable bidders: Morgan Stanley &
Co.; Halsey, Stuart & Co. Inc.
an

proposal.

one

of the

one

Philadelphia

Najoca Corp.,

for

contemplates sale of $16,000,Probable bidders include Halsey, Stuart &

bonds.

submitted

submitted

July 29 directors provided that holders of the company
shares shall be entitled to subscribe at $35 per share

Equitable Gas Co.

July 28 reported

Co.

Trust

plans.

will receive bids for purchase of
$2,800,000 of equipment trust certificates.
The certifi¬
cates are to be dated Aug. 15, 1947, and are to mature
semi-annually over a period of 10 years.
Probable bidbers: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Harris, Hall & Co. (Inc.). Bids will be received up to
noon (EDT)
at office of J. G. Enderlin, Treasurer, Room
2008, 140 Cedar Street, New York.
7

Co., which already had

Manufacturers

Delaware Lackawanna

•

Aug.

•
New England Telephone & Telegraph Co.
July 30 the New Hampshire P. S. Commission announced

writing compensation were modified in Federal District
Court and an alternative offer was submitted by Wert-

probably

underwriters,

by

Broadway, New York. Probable bidders include The
First Boston Corp.; White, Weld & Co., and Kidder, Peabody & Co. (jointly).
'
:
- 1 r'

principal and interest on outstanding debentures.
Two of the offers, which had been opposed by a rep¬
resentative of the SEC as requiring excessive under¬
full of

voted to increase stock from
$5,000,000 to $6,000,000 (par $10), the additional 100,000
shares to be offered for subscription to stockholders on
basis of one new for each five shares held. Unsubscribed
July

61

designed to provide cash for payment in

Each is

tion.

Continental Casualty Co.

ago.

week.

>

team
will
be
S. Bache trophy,

Wall Street softball
The Curb Exchange
off with the laurels

league's

inception

13

Volume 166

Number 4616

THE COMMERCIAL & FINANCIAL CHRONICLE

World Bank Securities
\

.

rules

are

CONSOLIDATIONS

_

these United

States

should

extend

>

Bankers

and

,

CAPITALIZATIONS

At

seen

that the Commission found it necessary

meeting

of Directors

of

the

Cashier,

profits

Boston "Herald" of

to

to

of $18,750,000
approved. After giving effect

this

transfer, capital will

re¬

the World Bank securities from this Act, a posi-< main as at .present at $41,250,000;
Surplus will be increased from
we
feel supports the editorial
policy we have
$41,250,000 to $60,000,000, and un¬
adopted since the passage of the Maloney Act.
divided
which

profits

as ~ of

June

30,

interesting problem posed by these new rules is after adjustment, will amount to
$20,048,000, making total capital
whether a non-registered dealer or broker
may make a con¬
'One

funds,, of $121,298,000.

tinuous market in the securities of the World Bank.

•

„

The action of the SEC

in

connection with the World

Bank securities, which is here described,
the Commission's release No. 3233.

was

covered by

Reading that release,
was

one gets the impression that it
the intention of the SEC to permit continuous markets

in World Bank's securities
not

or

they

by dealers and brokers whether

representative addressed this question to Mr. S.
Fleetwood Dunston, Director of Sales of World Bank Se¬
curities, and he gave it as his opinion the Commission
'intended that non-registered dealers and brokers could main¬
a

continuous market in these exempt securities.

On

the

whole,

are

we

July

Bank

of

8,

New

in

at

Savings

held

testi¬

a

Luchow's

14th

Res¬

Street,

establishment

to mark
its Quarter

of

members

all

15

were

served

than

40

bank

for

President of

of

the

"outstanding

of the opinion that the Com¬

the

sion

presented each

and

with

more

T.

services"

guests of the

occa¬

member

gold service button and

a

a

mission would do well to convert the exception into the
$50 U. S. Government Bond.
In
rule and adopt the policy of what is sauce for the
goose, etc. addition, he stated that annual
We
runner

prophesy that the instant practice will be the fore¬
of numerous future applications for exemption from

provisions of the Securities Act.
be

and that

so

a

liberal attitude should be

member

a

burdens

of

the

*

Three

of

principal

*

banks

—

County's

the

County

Trust

Company of White
Y.,
the
Washington

Plains,
Irving
Trust Company of Tarrytown, and
N.

"

the Bank of Westchester

of Yon-

kers—have merged under the name
the
County Trust

For Bank

Employees Shown in Study

A

study of pension practices for bank employees shows that there
a rapid growth of such plans during the last five
years, with
177 new plans established during the 1942-1947 period among a
group
of banks studied by Bankers Trust Company's pension trust division.
The study, results of which are being published in August, covers
two-thirds of all bank employees in the nation, employed in the 700
banks with deposits in excess of
——
$22.5 million, and, in addition,
The study points out that many
banks covered by State associa- banks having no formal retiretion plans.
Of the group of 700 ment plan have adopted informal
banks studied, only 112 had for¬ practices
to
cover
payment
of
mal pension plans prior to 1942.
pensions to old employees. While
has been

There has been a wide interest

too,

on

the part of bankers asso¬

ciations in sponsoring group plans

'available to member banks. There
13 such plans in

existence
embracing coverage for more than
8,000 employees.
are

now

The

study indicated that there

very little agreement among
banks relative to the type of plan
was

used for employee

retirement. Of
the 289 banks in the study-group
which now have formal pension
plans there are 226 different plans
in use. The study includes a tabu¬
lar

analysis of these 226 different
plans covering such details as
eligibility, retirement ages, em¬
ployee contributions, benefits to
employees, and other conditions.
The

most

plans
on

was

an

common

factor

in

all

the general agreement
retirement age of

average

65, although

some

plans

provide

A

by

breakdown

geographical

of

pension plans

areas

em¬

ployee retirement programs is not
centered in particular areas of the
nation but rather is nationwide.
Many institutions, which do not
maintain
formal
pension
plans,
have adopted profit-sharing sys¬
for

provide retirement funds

individual

banks combine

sions, most are calculated on a
basis of merit and need. The
study
states that such a plan often is
costly

more

ment of

a

than

the

establish¬

formal plan.

A simple yardstick for
comput¬
ing the cost of a pension plan to a

given

institution

is

included

in

the book.
the

use

future

This yardstick
explains
of the past service and

service

formulas,
and illustrates the
way in which
annual costs are
calculated, utiliz¬
ing a
pre-determined
list
of
mathematical factors.
The

study will be distributed
August to correspondent

banks

and

bank

customers

of

Bankers Trust Company through¬
out the country, and will be avail¬
able to other bank officers and di¬

rectors

upon

Pension

written

request

Division,

16

to

Wall

employees.
Some
profit sharing with

29
at
special
stock¬
meetings. The new in¬
stitution will have capital funds
in excess of $7,750,000 and total
resources
over
$120,000,000. The
bank

has

offices

18

Westchester

located

communities.

in

All

three institutions, which are state

banks,

members of the
Federal Reserve System and of
the
Federal
Deposit
Insurance
Corporation. It is expected that
the

are

merged bank will be

by Andrew Wilson, Jr.,

headed

Chair¬
man
of the Board, and Joseph E.
Hughes, as President. Henry F.
Freund is expected to retire from
the
banking business and will
hold no official post in the new
organization.
References to the
proposed merger appeared in our
issue of June 26, page 3380 and
July 17, page 247.
*

•4!

The

Federal

as

Boston announced

on

Bank

of

June 30 the

the

sale

bonds

100,000
which

of

shares

$10,000,000

from

and

of

American

the

common

Power

in

&

for

company

be

the

of

will

used

gas

by

the

to

of

The
pro¬

production and

ritory served by the

pay,.k,.

the debentures, as well as funds

the

sale

of

in
1918.
He
was
Assistant Cashier in
1943,
served the bank as
personnel director.
He has been

Banking."

Harold
of

the

growing

The debentures

demands

are

Savings Bank of

porators of the bank,
according to
the New Haven
"Register" which
states that in his new
posts Mr.

Mathewson

succeeds

Kimberly,
after

who

Bank

Jan.

the

this
he

post

held

elected

a

The

he

of

Carlson

Bellinger
of

the

and

Assistant

as

Bank.
1916.

:

employed
York

the

has

an¬

William

Mr.

Mr.

-

by

for

19

the

Bank

was

of

New

Company in

*

Tradesmens National Bank and
Company of Philadelphia

announced on July 28 that at a
meeting ofxthe Directors on July
25, James M. Large was elected
*

prices

par and

for

company.

redeemable

ranging from

at special

of

Virginia

of

The

at

Richmond,
July 17 where
the staff was busy in
greeting the
numerous well-wishers and those
Va.

occurred

on

who

came
to see $1,000,000 cash'
display. The day also marked

on

25

of

years

C.

service

for

Thomas

Boushall, President, and L. H.

Fairbank, Vice-President, in
ognition

of

which

Mr.

presented with

the

The

silver

tray

officers

and

and

quotes
"Portsmouth

was

presented
a
officers and direcV
in

announcei

its

editorial

an

Star"

the

on

a

the

bank

ment

ments

in

in

in

whielji

anniversary

development from
total

resources

1922 to

000,000
in
phenomenal

bank

a

of

$375,000

than $55,4

more

1947

bespeaks
it&
through th|
banking institution, no£

years as a

alone

of

one

the

comf

its

part says:

with

rec¬

Boushall

Virginia Club,

by

of

by

tors.

for

growth

Portsmouth

and

citizens but for the State
*

*

it$

well."

as

Hs

j

Logan

Coleman, President
the, Illinois National Bank

Wyo., it is learned
Louis

at

from

Democrat"

the

Stricken

Estes

Park, Colo., where he
vacationing, a plane had
chartered
at
Cheyenne to
him to Chicago. Mr. Coleman

been
take

67 years of age.

was

*

the
&

Trust

Na¬
Company of

East Pittsburgh, Pa. increased its
capital from $300,000 to $500,000
by a stock dividend of $200,000.
An

Society

of

of

Philadelphia,
sentence

members

of

its

contains

in

tribute

a

Board

to

of

its
the

Man¬

new

*

*

success

and

through

good
Mary B.

bad.

There,
Reeves, Advertising Manager of
the
Society, who authored the

$600,000

National

;

July

capital

Plans

26,

to

noted

were

of June

page

Ratification
stockholders

effective

on

increase

the

in

on

July

its

crease

provide
shares

for

Louis

plan

common

for

each

share

National

stock

stock

with

gether for good'."

From

lease accompanying the

the

book,

placed

quote in part:
"It

is

a

tribute

conservatism of the

the

to

the

Society has weathered

financial crisis that

wise

Managers that
every

of

Bank

in

was

"Globe

as

of

to

344

North¬
of

escrow

holders assenting

to

St.

by
the

reported in the St. Louis
Democrat"

of

July

26,

which added:
"The

stock

early

is

expected

next

week,

to

be

when

Bank will

become a majority controlled sub¬
sidiary of Industrial Bancshares.
No
change
in
management
is
planned. John P. Meyer is Presi¬
dent of the bank.
*

re¬

we

so

exchange

issued

served

by

Industrial Bancshares Corporation of plans to in¬

Northwestern National

capability
the
ideal
pro¬
claimed by the
founders, yet have
never been
unwilling to progress,
so
long as 'all .things work to¬

25

of

that it will record that
and

issue

our

3380.

book, issued under the caption "A
Savings Bank Account" writes

they "have
unfaltering ' loyalty

of

of Commerce
increased from

HI,

became

16.

capital

Bank

Chicago,

$500,000,

84-page booklet embodying

the story of the first 100
years of
the Western Savings Fund

of

had been

The

Effective July 15 the First

tional Bank

of

Springfield, 111. died suddenly on
July 22 while enroute to Chey¬

*

has occurred
104% to
since its founding.
And that the
prices running
original 21 depositors—the Man¬
from 100.89% to par,
agers who put up $2,000 as the
at

Bank

H*

anniversary

Director.
*

#

achievements."**
H*

"St.

*

Trust

a

other's

25th

enne

year.

*

the

The

Bank

before joining

Trust

April of this

the

has

Bellinger

years

Palisades

A.

Treasurers

Carlson

been--'associated,, with
since

Company

J.

the appointments of Ar¬

J.

it covers.
The Society and
the city have grown
up together,
each justifiably
proud of its own

"Its

Trust

Saving

that

was

Morgan, President
N.

institu¬

Savings Bank Ac¬
large extent a his¬
tory of Philadelphia in the period

in

Englewood,

an

Western

it serves, 'A
count' is to a

*

Palisades

10th

Society is inseparably bound
history of the community

scroll

which

Estate

at

with the

addition

when

remain

the

Fairbank

office

Real

Meanwhile,- the

history of

as

Mr.

*

W.

such

assistant to

corporator, trustee and

Douglas
the

"Since the
tion
Fund

Bank

Sectary the

a

Walnut Streets, which it has
occupied since 1856.

goblets

to

of

build¬

and

and

an

office

was

joined

were

erection

the

will

The

1946

*

office

the

became
year,

1,

Vice-President.

of

home

through¬

Chestnut Streets

of

in

and

until

site

Building.

as

1, 1936

following

P.

July

National

President

and

Savings

Mathewson
of

the

John

retired

44
years qf
service.
advices said in part:

"Mr.

the

H»

New Haven, Conn, at
the annual
meeting on July 18 of the Cor¬

same

Trust

B.

National

for

He

Mathewson
was
President and Treasurer

elected

the

on

offices

10-story main

and

*

west

Plans recently

ing at Broad

Missouri

electric and gas service in the ter¬

proceeds from

Bank

named

seven

city.

times

Florida Power & Light Co. 344%

the

va¬

to

out the

announced

Light

distribution facilities required to
meet

a

and has since

tute of

spread

;

.

fills

brick

was
outgrown
in
five
Since then the
Society has

stitution's

redemption

used

Bank

three-story

10th

years.

stock

indebtedness.
be

Secretary

National

left by the death of John C.
Hunter, joined the staff of the Re¬
serve

of

western

of

Co. has contracted to purchase for

$2,500,000, will

He is

Boston

Vice-

•

-

modest

agers,
past
and
present, which
holds the key to the venerable in¬

sale

by
Halsey,
Stuart & Co. Inc., is offering pub¬
licly today (July 31) $10,000,000

Net

the

final

new

Assistant

Cashiers Association.
"Mr. Harvey, who

*

Reserve

tion, transmission and distribution

sinking fund debentures due July
1, 1972, at 101% plus accrued in¬

and

President in 1945.
of

also

facilities and

terest.




July

Offers Florida Pr. Debs.

formal plan, while others view
profit sharing wholly as incentive
a

on

holders'

Halsey Stuart Group
headed

1941

thur

The merger was approved

vide additional electrical produc¬

group

in

banks.

remainder

A

ier

nounced

$17,460,000

Street.

appointed Assistant Cash¬

was

Company,

from

during

He

according to a joint statement re¬
leased
by Andrew Wilson, Jr.,
Joseph E. Hughes and Henry F.
Freund, Presidents of the three

benefit

indicates

that the war-born interest in

tems to

no general standard as a
basis for the amount of such
pen¬

the

for earlier pensions.
:

there is

"Mr. Van Amringe has been as¬
sociated with the bank since 1917.

staff

Westchester

July 1, which

•

club

♦

of

Recent Growth in Pension Plans

.

would be increased to four weeks.

adopted by the

such applications, until such time as
imposed by the excessive regulations aof the
Securities Acts are considerably lightened and until such
time as the Maloney Act is completely repealed.
the

is

It is well that this should

with respect to

SEC

paid vacations for each employee
who

the

ing field with the American Insti¬

Lee,
bank, expressed

the

as

from

had

who

James

Harvey

$899,289,credited to deposit¬
$81,890,529 in inter¬

building in Chestnut Street

new

*

the

B.

learned

in part said:

Guests of honor

years.

appreciation

is

active for many
years in the bank¬

members, five of whom

have

Robert

it

as

Century Club and to welcome
charter

and

cancy

...

Central

-

York

dinner

taurant,

*

25 years or more.

Our

tain

*

been associated with the bank for

registered.

are

On

the

*

*

.

monial

-

dent

surplus

to exempt

tion

appointments of Roy F. Van Amringe of Braintree as Vice-Presi¬

of the Manu¬

facturers Trust Company of New
York, a transfer from undivided
was

It will be

recent

a

Western

deposit

-

.

"The

Board

first century
for

has

total of

a

est.

.

^

and

ors

fair

........

its

taken

165

to

play in the marketing of all securities. ' There should
be a parity and equality of practice.
—}
We have hammered
continuously against the monopoly
created by the Maloney Act and have
persistently advocated
its repeal..

In

has

OFFICERS, ETC.

REVISED

due to the United States' interest in the Bank.

The interest of

373.

NEW BRANCHES

NEW

37

initial deposits on the
day the
Society opened for business, July
7, 1847—have grown to 224,700
with deposits
totaling $174,788,-

News About Banks

And SEC Regulation
(Continued from page 3)

(457)

An

increase

#

*

of

$200,000 in the
capital stock of the City National
Bank of Tuscaloosa, Ala., through
stock

dividend, raising the capi¬
$400,000 to $600,000 is
reported in the bulletin issued by
the office of the Comptroller of
the Currency. The enlarged capi¬
tal became effective July 14,
a

tal

from

.

THE COMMERCIAL &

(458)

38

Thursday, July 31, 1947

FINANCIAL CHRONICLE

Indications of Current Business Activity
statistical tabulations cover production and other figures for
either for the week or month ended on that date, or,

The following

shown in first column are
STEEL INSTITUTE:

IRON AND

Month
Ago

Ago

3

94.4

93.1

Aug.

3

1,651,900

1,629,200

1,259,900

ING—FEDERAL

RESERVE

Crude

(bbls.)

Gasoline output

—

(bbls.)
_—.
Gas oil and distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
Stocks at refineries, at bulk terminals, in transit
Finished and unfinished gasoline (bbls.) at
at

(bbls.)

Kerosine

I

and in pipe lines—

5,049,850

19
19
19
19
19
19

5,126,000

15,747,000
2,091,000

5,912,000

8,969,000

46,505,000
51,542,000

50.529,000

16,672,000

July 19

(bbls.) at

5,045,350
5,229,000
16,197,000
2,194,000
5,909,000
8,679,000
88,791,000
16,057,000
45,261,000

87,145,000

July 19
July 19

—

Gas oil and distillate fuel oil
Residual fuel oil (bbls.) at

I

;

output

Kerosine

July
July
July
July
July
July

July 19

5,114,500
5,078,000
15,682,000
2,163,000
5,942,000

4,937,100
4,817,000
14,227,000

8,598,000

——_ ——_

(number of cars)—,
freight rec'd from connections (number

Revenue

of cars)

ENGINEERING

CONSTRUCTION,

ENGINEERING

CIVIL

,

Dollar

and municipal

State

—

—.

Federal

foreign
Total

91,877,000
14,041,000

(tons)
anthracite (tons)

coal and lignite

24"i
24
24
24
24

Pennsylvania

(tons)

coke

Beehive

—

__

5,450,000

8,453,000

$191,719,000

40,835,000
48,766,000

43,481,000

;

stored

shipped

and

t

15,678,000
COAL

43,284,000

U.

(BUREAU OF MINES)—Month of May:

S.

expoi-ts of

1

(net

Pennsylvania anthracite

tons)
South

America

806,961

901,296

921,496

To

531,398

715,343

687,012

To

Asia

Africa

Europe

America

Central

tons)————_

(net

_

434.222
10,746

—

tons)—

—

tons)

(net

—

$134,765,000

$104,350,000
51,195,000
59,297,000
53,155,000
49,179,006"—' 39,084,000
10,118,000
14,071,000

$143,470,000

$140,857,000

75,468,000

69,090,000

COKE

66,705,000

(BUREAU

Production

74,330,000

74,152,000

33,488,000

43,220,000

Beehive

40,892,000

30,932,000

12,900,000
1,221,000

1,340,000

110,900

51,200

123,200

RESERVE

July 19

♦228

256

201

coke

Oven

12,000,000

GRAY

stocks

at

.

&

4,730,229

4,732,434

76

63

60

4,352,489

4,674,434

July 24

-DUN

593,224

5,812,235
5,382,830
429,455

.2,600,542
2,573,592
•
26,950

tons)

670,656

651,671

464,672
'

r

—„X_——~ $234,000,000 $250,000,000 $121,000,000

CASTINGS

IRON

(net

BANK

30

Shipments

(short

COM¬

OF

(DEFT,

...,v

13

steel

July 22
July 22

(E. & M. J.

LUMBER

37.75

$33.15

34,75

.

<

i-

$26.45

19.17

at
—
Straits tin (New York; at—,——
Lead
(New York) at—,
Lead (St. Louis) at——
Zinc (East St. Louis) at
—

—

21.225c

21.250c

14.150c

21.425c

21.050c

21.425c

16.075c

-July 23

—

21.225c

—July 23

refinery

Export

♦$33.43

40.00

—July 23

.at——

rexinery

Domestic

(DEPT

PRICES DAILY

Bonds—
corporate ——

Govt.

80.000c

80.000c

80.000c

52.000c

15.000c

15.000c

9.500c

—July 23

15.000c

-July 23

14.800c

14.800c

14.800c

9.350c

-July 23

10.500c

10.500c

10.500c

9.500c

'•'

Average

Month of May:

Mine

Group

Railroad

Utilities

Public

\ '

Copper (in short tons)
(in fine ounces)

short

S.

U.

122.09

122.09

121.88

123.13

120.22

120.22

120.22

121.04

PLANTS

118.40

FACTURERS ASSOC.)—Month

116.80

116.41

109.97

109.97

109.42

112.37

112.00

llT.25"fr?'-

118.60

118.60

118.60

119.20

120.63

120.84

120.84

1.59

1.56

1.50

1.55

-July 29

2.79

2.79

2.81

2.72

July 29

2.55

2.55

2.56

Baa

July 29

2.64

2.81

—

Utilities

Group—_

■

2.60

3.17

3.20

3.10

2.87

2.72

2.72

2.72

2.69

2.62

2.61

2.61

-

416.5

401.0

419.0

346.4

221.3

222.5

217.4

181.4

.July 23

198.6

200.1

207.3

205.9

.July 26

259.4

257.1

249.4

Zinc

Lead

LACQUER
AND
COMMERCE)—Month

OF

by

reported

sales

OF

365.0

356.1

318.6

251.9

256.1

220.3

Pounds

244.5

233.1

195.7

172.2

138.6

Cold-water

178.6

161.1

154.2

218.6

196.6

Pounds——;—

125.3

Value

150.1

149.0

148.7

194.7

*187.0

*185.7

152.1

155.3

128.3

129.5

129.5

127.1

135.0

134.6

119.7

127.1

126.6

125.6

115.1

203.6

202.3

197.9

170.8

STEEL

(DEPT.

CASTINGS

26

1,853,540
$101,879

2,316,755{ f

(short

tons)—

sale

producers' own use
orders
for sale

145,615

139,288

166,639

173,699

133,950

182,909

158,210

July 19

97

July 19

474,870

.

76

505,183

102

94

487,877

588,429

..

STEEL

tons)

AND DRUG REPORTER
INDEX—1926-36 AVERAGE—100

PRICE

July 24

.

Month

July 19
July 19
July 19
July 19
July 19
July 19
.— July 19
July 19
July 19
July 19
July 19

—

——,

—
——r

products

products

materials
Metal and metal products
Building materials
Chemicals and allied products
Housefurnishing goods
Miscellaneous commodities ,
and lighting

■

141.2

142.7

142.7

138.7

,

m

150.3

148.3

147.8

124.2

182.4

178.2

178.7

159.2

168.0

165.8

162.6

142.0

172.7

173.3

169.4

139.3

138.4

138.3

138.4

109.5

107.1

105.8

104.5

90.2

142.9

141.6

141.5

113.2

174.8

175.4

176.3

132.5

117.9

117.5

124.3

100.0

131.4

131.0

131.0

112.5

115.7

114.6

115.8

98.8

(DEPT.

OF

38,048
427,554

223,787
121,475

94,761*
36,083- f;

374,168

-

\

COMMERCE)—

*

(short tons)—

tons)—,'————,——,'.
For producers' own use
(short tons)
—, .
Unfilled
orders
for sale
at end of month

1

_I

articles

products

—

All

commodities other than

farm products—

All

commodities other than

farm products

and foods

STEEL

(sboxt

tons)

—

95,029

102,312

154,85(1 1
NOT

662,579

"

AVAIL¬

698,615

.

"

...

DETAIL^

ABLE

.

fe

(DEPT.

OF

\

April:

Steel

type
packages,

pails

r

—

packages, kegs

,

2,291,080
*591,897
5,304,124

1,999,82'!

772,68-lf
4,456,50:

!and pails

...
——

2,455,259
728,226
6,073,646

2,292,357
*592,149
5,279,041

1,987,82

777,12}
4,370,33»

TYPES ONLY
COMMERCE)—Month of April:.

COACHES—HOUSING

165.2

162.0

161.5

141.4

144.4

142.2

142.7

108.5

19

145.1

143.7

142.9

118.9

Production

19

143.3

141.8

141.1

116.6

Shipments

July 19

132.9

132.1

132.1

107.8

(DEPT.

Shipments

OF

(number

of

units)'—,

(number of units).:
(value of)

♦Revised figure.

1

Pf

,

type

Light type

TRAILER

and

kegs

Shipments—
Heavy

2,455,246
742,930.
6,0£9,866

type

Heavy

Light

it

■ '

Production—

July 19
19

ZZZZZZZJuly
~ ~ July
ZZ
July

DRUMS
AND
COMMERCE)—Month of

BARRELS.

SHIPPING

PAILS

Steel

Special groups—




—

106,127

115,743

,

37,094

443,225

—

(short tons)i___ —
at end of month

of May:

Shipments

(short

♦Revised figure,

I
130,844? I

DEPT. LABOR—1926=100:

WHOLESALE PRICES—U. S.
commodities

f

$39,59uj "

144,175

103,779

—

—

_________—._—

FORGINGS

For. Sale

OIL, PAINT

,

149,547

July 19

140,874

210,772.,.

tons),—,

For

July 19
—

!

j,

.

■''/.

(short

For

(short

PAPERBOARD ASSOCIATION:

xeceived (tons)-,-——_
(tons)——
Percentage of activity—
_
Unfilled orders (tons) at

Orders

Production

COMMERCE)—

OF

Month of May:

Shipments

Unfilled

Manufactured

1,407,497
$74,978

———
—

—

116.6

135.0

.July 23

combined-

materials

$635,607!. I

$U3,28.T l:

$292,538

186.4

152.9

July

—

Semi-manufactured

1,730,773,

$769,829

—_____

-

163,1

July 26

Raw

3,608,182

.—

—!

—

222.5

July 26

Fuel

2,785,340
$234,722
$752,603

OF

(DEPT.

(value)_

paints

164.4

July 26

and leather

$72,338,550!

Calcimines—

178.6

.July 26

Fertilizer materials

Textile

$32,111,163

*

—

—

221.9

July 26

Hides

,566,317

of April:
.

ETC.

PAINTS,

Value

—

materials

products

1,403

plastic-tekture water paints—

Sales of

352.5
254.8
249.7

.July 26

Foods

1,383

COMMERCE)—Month of April.

July 26

Farm

32,323

966

:.

manufacturing

680

———_

WATER

PLASTIC

.July 26

Metals

All

40,855

FILLER

VARNISH,

(DEPT.

.July 26

NATIONAL

694

36,772

212.4

.July 26

:■

All groups

89,163

634

(thousands of pounds)
___,
—_
(thousands of pounds)—I— _——
(thousands of pounds) _
——
die (thousands of pounds)——

.July 26

———————

—

31,208

93,253

628

'• 774

2.50

______

Building

41,669

80,054

.

ASSOCIATION—WHOLESALE COMMOD.

„

Textiles

37,400

60,07.9

COM¬

OF

pounds)———

(thousands of

Magnesium

Total

Livestopk
Fuels

201,902

Copper

3.06

.

products

Cotton

382,640

141,030
-

MERCE)—Month of May:
Aluminum

2.73

.July 26

Farm

1,853

401,552

(.DEPT.

CASTINGS

NON-FERROUS

3.03

3.04

GROUP—1935-39=100:

oils—

and

Fats

93.410

1,628

—_——_

——_—

establishments

FERTILIZER

284.357

93,981

vehicles)

of

(number

coaches

Motor

PAINT,

INDEX BY

ITY

305,943

MANU¬

of June:

Passenger cars (number of vehicles)——,—
trucks (number of vehicles)_aa_„_^

2.64

3.17

July 29

COMMODITY INDEX—

NATIONAL

147,149

Motor

*2.83

July 29

——

Industrials Group

MOODY'S

U.

IN

2.81

July 29
July 29

Group

Railroad

11,814,853

*56,827

FROM

FACTORY
SALES
S.
(AUTOMOBILE

VEHICLE

MOTOR

2.64

■

July 29

—,——

————-r

*2,956,082

2.50

——

Public

112.56
"115.63

■July 29

———-■

—

127,706

2,731,941

121.46

—

A

150,196
1125,296

♦31,658

•118.60

Total

«■—

„

♦72,174

♦156,335

123.64

116:80

July 29

Bonds
corporate —

Aaa

Aa

121.42

117.20

-July 29

Govt.

Average

Not Avail.

74,374

_

121.80

116.80

DAILY AVERAGES:

MOODY'S BOND YIELD

Not Avail,

Not Avail.

1,385,703

57,181

ounces)—
(in short tons)
fine

117.20

—.—

_——

1.774.684

1,283,158

30,852

tons)—————

(in

121.89

—July 29
-July 29

Group—

"Not Avail.

156,006

—

_

Lead

-July 29

.1

2,951,871

4,443|548

;

——

Gold

(in

2,831,184

• 1

in

metals

recoverable

of

production

the u. s—

-July 29
-July 29

-——

Industrials Group

2,531,095

'

-

—July 29

—

—

A——IZZ.Z—ZZI—.

,

MINES)—

OF

(BUREAU

OUTPUT

METAL

Zinc

AVERAGES:

———

2,907,694

3,106,491
production-fthousand board feet)
Mill ;and concentration yard lumber stock at
end of April (thousand board 'feet.)——'4,591,457
Eastern softwoods (thousand board feet)—
1,849,572
Hardwoods (thousand, board feet)—-—
1,360,573
Western softwoods (thousand board feet)—
1,381,312

-July 29

S.

U.

317.812

S.

Silver

MOODY'S BOND

465,033

460,442

of

COMMERCE)—Month

OF,

.

—

QUOTATIONS):

Electrolytic copper—
-

$36.18

2.85664<*V-i' '••2:73011c

2.85664c

—July 22

(per gross ton)
steel (per gross ton)

METAL PRICES

2.85664c

lb.)

(per

sale

782.8^0

636,708

April:

Pig iron
Scrap

(short tons)——,
at
end
of
month

use

for

tons)———

1,097.150

2,782,706

—

,

own

orders

(short

—

COMPOSITE PRICES:

Finished

producers'

-

BRADli

\

tons)

1,097,307
633,013
464,294

tons)

(short

U.

IRON AGE

-

OUTSTANDING—FEDOF NEW YORK—

PAPER

June

Unfilled

July 26

INDUSTRIAL)-

L_

——-

tons)—
end of month

(net

RESERVE

of

As

tons)—

(net

coke

For sale

INSTITUTE:.

FAILURES (COMMERCIAL AND
STREET, INC.——-1—i

250,835

123,000

217

May:

—6,124,015
:__•
—_
5,530,791

tons)—

12,500,000

1,116,000

6,235,000
1,008,000

of

MINES)—Month

OF

(net

coke

Oven

ERAL

(in 000 kwh.)

Electric output

546,257
295,414
8

443.239
11,002
47

386,271

tons)—

(net

tons)

(net

(net

•

880.335
414,794
11.203

831.239

;

North and

For

EDISON ELECTRIC

9,940,1)1)0

between

MERCE)—Month of May:

DEPARTMENT STORE SALES—FEDERAL
SYSTEM—1935-39 AVERAGE=100__

21,648,000

.

—

COMMERCIAL

—*—July IS
——July 19
-July 19

—

17,238,000
215,000

Z—~_—~Z—

credits

countries

To

ASSOCIATION):
Bituminous

9,864,000

89,519,000

NATIONAL COAL

OF MINES AND

(U. S. BUREAU

COAL OUTPUT

warehouse

exchange
on
goods

Based

1,978,000

5,329,000

—.

NEWS
*—July
JuJy
July
July
—July

construction—.
Private construction
Public construction
S.

U.

1___'

8,089,000

Domestic

651,744

RECORD:
Total

zzzzzzzzzzzzzzzzz
_J_

$174,225,000

9,347,000
1,000

;

shipments

919,734

July 19
..July 19

$110,764,000 $117,686,008
45,137,000
45,722,000
11,119,000
10,622,000

6,061,000

__

Domestic

To

AMERICAN RAILROADS:

freight loaded

Revenue

:

$182,517,000 $189,256,000

!

Imports

To

ASSOCIATION OF

Ago

NEW

OF

BANK

YORK—As of June 30:

1,579,100

Exports

AMERICAN PETROLEUM
Crude

Year

Month

BANKERS DOLLAR ACCEPTANCES OUTSTAND¬

89.6

72.0

INSTITUTE:
oil output—daily average (bbls. of 42 gallons each)
runs to stills—ctaily average (bbls.)—;

Previous

Year

Week

-Aug.

operations (percent of capacity).
Equivalent to—
Steel ingots and castings produced (net tons)—
steel

Indicated

Previous

Week

Latest

Month

Latest

AMERICAN

the latest week or month available (dates
cases of quotations, are as of that date) :

in

:

—:

$Montkly average

5,392

4,885

5,437
$8,608,555
in year 1946,

4,786
$7,536,976

Not Aval

.2,^8
$4,423,03

[!

Number 4616

166

Volume

Business
Opinions

THE COMMERCIAL & FINANCIAL
CHRONICLE
10%

Prospects for Last Half of 1947

to the general outlook for business during the coming
six months vary considerably, according to a survey just completed
by the National Industrial Con-^
,

as

ference Board.

Most

businessmen,

however, report greater
tism

and

both in their

conserva¬

cautious

more

buying
purchasing and

own

ecutives

were more

of

cause

the

Sales

Concern Over Inventories
concern

unbalanced

high

over

inventories

or

manifest¬

sales
year

Although

heavy in

demand

remains
lines and backlogs

some

still

high,

only one out of
every ten executives replying ex¬
pects new orders to exceed ship¬
ments in the coming six months.
are

Half

Relation

of

1946.

'

to
,

.

in

the

will

half

second

of

the

be

higher than in the
corresponding period of 1946. This
is attributed in part to price in¬
creases, and in part to reduced ac¬
tivity last year because of labor
difficulties.
(In some industries
no clear-cut
picture is presented.
For
others, the majority view¬
point is

follows:

as

Cancellations,

higher for

office

some

chemicals,

substantially

floor

rather
heavy
in
industries iri the first quar¬

ter of the year, present "no par¬
ticular problem at this time."

-Estimates

frequently
no

future

to

as

made

sales,
the basis of

on

serious labor difficulties espe¬

cially in the. coal industry, show
about

third

a

lboking for
six

of

the

executives

rise in the coming
compared with the

a

months

railroad equipment. ~ For - woolens
and worsteds a decline is forecast.
The median
average increase for

forecasting gains is

25%),
Industry Forecasts: JanuaryJune, 1947 vs. July-December,
There
ment

as

is

fairly

ties

firm

wants

experienced trader-

salesman with clientele.
liberal

commission

facilities.

Box

Salary and

basis,

G

complete
Financial

729,

Chronicle, 25 Park Place, N. Y. 8.

extent

are

present.

logs,

For

general

agree¬

example, machine
generally look for

tool executives

drop in sales in the second half

a

of this year.

TRADER
Capable

of

organizing

Counter department.

plus

commission.

Over-the-

an

ahead of

Drawing
Have

account

had

731,

instances and, with
forecast
as
running

new

orders, this drop is

A

transition

sellers'

from

market

of

Noted

the

the

standards

and specification
tending to result in a

the

over

months

of

first

is about 15%.

the

as

the

year,

six

median

Park

Place,

New

York

N.

8,

Y.

clauses

is

TRADER

as

Has

some

following.

Box M 717, The
Chronicle,
Park Place, New York 8, N. Y.

25

&

Financial

well

in .prices!

as

In

some cases

physical volume of
expected to decline, but
the

dollar

value

is

sales, is
a

rise in

forecast

be¬

of

cause

higher prices. Generally,
however, the companies expecting
sales; increases -attribute only a
portion of it to higher prices. On
the other

TRADER
Wishes
execute

position
; orders

give

to

and

over-the-counter

in

-

service

hand, some of the com¬
panies forecasting lower dollar
sales do not expect physical vol¬
ume to
drop as much if at all.

concern, of course, is

Box

M81,

Financial

Chronicle,
New York 8, N. Y.

Commercial

Park

25

benefit

by

lower prices
may occur at a later date.

erations.

which

"No

Particular

Cancellations of unfilled orders

increasing in
presesnt

lem

at

this

experience

in

and

of

de¬

all

prob¬

tributed to delays in delivery, al¬
though considerable duplication of
orders

is

also

evident.

Manufac¬

turers also mentioned cancellation
of poorer quality merchandise or

are

partments having to do with

selling, trading,
and buying.

Seeks

nection.-; Has
following.

Box
&

icle,. 25

L

present
or

730,

Y.

stitl
are

today.

industries

new

While
orders"

tighely controlled
made

that

they

and

Most executives report that cus¬
are much more cautious in
their purchasing and have become

increasingly

price
and
quality
These
developments
largely characterize the buy¬

conscious.
also

siderable

fear

survey.

25

New

Place,

absolute

minimum

raw

Efforts to bring inventor¬
proper
balance"
also

materials

in

Current inventories

sales

are

-

'

,

to

experience.

not

re¬

garded

as
dangerously high by
majority of executives reply¬
ing, although virtually all are
more
inventory conscious than
during the y war.
The principal

year-end audit, charges and adjustments)

Board

Financial

Directors

July

the

1947

EARLE MORAN.

Ship Construction

Out-of-Town

$

June 30,

June 24,

1946

1947

1946

4,536,000

$

8,028,000

$

8,900,000

^7,015,000

12,704,000

0

per

Common

Common

and

American

able in cash

on

of

Seventy-five

Common

Tobacco

the

at

Edmund

Chronicle,

1,502,000

Stock

B

Company,

Cleveland, Ohio

of

close

of

®)

pay¬

American

A

Manufacturing
Company has declared a dividend of
Seventy-five Cents (75c) per share on
the
outstanding common stock of the
Company, payable August 25, 1947,
shareholders of record

H. C. STUESSY

record

1,

1947,
close

at

*

NATIONAL

of

dividend
on

declared

Common

payable

(20(f)

Stock

September

to stockholders of record at

September 5,

ness

At a meeting of the Board of Directors of
National
Container
Corporation held July
26,
1947, a regular quarterly dividend of
thirty cents per share, on the new Com¬
mon
Stock,
was
declared
payable
on
September 10, 1947 to stockholders of rec¬
ord
as
of
the
close
of
business
August
15, 1947.
HARRY GINSBERG, Treasurer.

^

of twenty cents

the

has

30,

CONTAINER

CORPORATION

to stock¬
business

August 22, 1947.
A

share

Secretary & Treasurer

1947

per share
the Preferred Stock has been declared

September

the close

-PitliLryfi

CORPORATION

of

at

August 5, 1947.

July 25,

Sanitary

quarterly dividend of $1.75

on

Board of Directors

of Eaton

Standard

&

per

been

1947,

close of busi¬

1947.

HOLLAND J. HAMILTON

Secretary and Treasurer

TEXAS GULF SULPHUR COMPANY
The Board of Directors has declared
dend

of 50 cents per share and

tional

dividend of 50

tember

cents per

capital

Company's

stock,

share

divi¬

a

addi¬

an

on

payable

the

Sep¬

15, 1947, to stockholders of record
close of business

at the

W.

DIVIDEND

An

interim dividend

August 26, 1947-

ATTWOOD, Assistant Treasurer.

No.

150

of

sixty cents
(60?!) per share has been declared
on the
capital stock of The Borden
Company, payable September 2,
1947, to stockholders of record

at

the

close of business August 12, 1947.
E.

L.

Tennessee
Corporation

UNHtSttl CORPORATION i

A dividend of 25<f. per share has been
declared, payable September 24, 1947,
to

stockholders of record

business

NOETZEL

July 29, 1947

An

Treasurer

518,000

2,499,000

$10,048,000

$24,103,000

dividend of 21 i per

extra

close of business
61

July 25,

July 22.

BURUNGTON
MILLS

CORPORATION

6,

J. B. McGEE
N.

United States Lines

Company
Common

4% CUMULATIVE PREFERRED STOCK
$1 per share

3Vi% CUMULATIVE

PREFERRED

cents per

Stock

STOCK

share
The Board of Directors has authorized
the payment of a
quarterly dividend of

3Va% CONVERTIBLE SECOND

fifty

cents ($.50) per share payable Sep¬
tember 2, 1947 to holders of common stock
of record August
20, 1947 who on that date
hold
regularly issued common
shares

STOCK

cents per

DIVIDEND

share

($1

par

value)

($1.00 par) of this Company.

(42nd Consecutive Dividend)
25 cents per share

Holders

Company

Vice-President and Comptroller

Treasurer.

Y.

1947.

The Board of Directors of this
Corporation
has declared the following regular divi¬

Each

R. I. FLETCHER

share1

September 4, 1947-

Broadway

New York

1947

Notice

$21,250,000

By Order of the Board of Directors

the close of

declared, payable September 24,
1947, to stockholders of record at the

1,623,000

$15,599,000

at

September 4, 1947.,

has been

COMMON STOCK

July 23, 1947

DIVIDEND NO. 90
The

business

of business

Radiator

Secretary

the

to

87'/a

1,604,000

Park PL, New York
8, N. Y.

Edwin O. Wack,

EATON MANUFACTURING COMPANY

Cents

upon

A. IIarvev, Treasurer

PREFERRED

25




mailed,

July 29, 1947

VJtwlJorlt

payable September 1,

N. Y.

August 8, 1947. Checks will be mailed.

87'/j

9,459,000

Stock, both

1947, to holders of record at the close of
business August 4, 1947. Checks will bo

September 2, 1947, to stock¬

record

half cents ($1.12 Hi)

Dividend

of

share has been declared

Stock

a

share on Cumulative Preferred
Stock, 4'/b% Series, and a dividend of
Fifteen cents (15c) per share on Com¬
per

(/

Yew York 3,

dividend

Accessories and Other

Totals

regular quarterly dividend of One Dol¬
lar and twelve and

July 23,1947

Fifth Avenue

Hydraulic Turbines and

Commercial

The Board of Directors has declared the

close

mon

2,612,000

Ship Repairs and Recon¬

Work

5

Secretary & Treasurer

l*CO«PO«ATlD

(75#)

Secretary.

BUTLER BROTHERS

J5& Jnimiecui

168th

BELL,

*«*»♦

29, 1947.

regular

O.

Anaconda

holders of such
of record at
the
of business at 3 o'clock
P.M. on August

A

1947.

business

157
of

Mining Company has declared a divi¬
dend
of
Seventy-five
Cents
(75c) per share
upon
its Capital Stock of the
par
vain0
of
$50 per share, payable September
26, 1947, to
shares

111

29,

CO.

24,

Copper

C.

July

1947.

Twenty-six Weeks Ended

June 24,

1947

Traders. Salary and Commis¬

&

of

STREET

York,

Directors of this. Company has
thiq day declared a dividend of Twenty (20c)
Cants
per
share
on
the
outstanding capital
stock,
payable September
15, 1947! to share¬
holders
of
record
at
the
close
bf

dends:

June 30,

versions

Has accounts. Well known to

M 79,

Y.,

DIVIDEND NO.
The

the

Thirteen Weeks Ended

18,

New

of

critical

"into

Majority Do Not Consider In¬
ventories "Dangerously High"

are

BROAI)

Board

except for

Newport News
Shipbuilding and Dry Dock Company

New

New

Box

N.

Dividend

Trader Available

sion.

4,

policy of holding purchases to

24,1946

and

MINING

LINE

Broadway

York

regarding
current high inventories in the
light of possible inventory losses

in

Only

Chron¬

30

The

DIVIDEND NOTICES
ANACONDA COPPER

exists

have been heightened.

an

(Subject

New York

reinstating "normal"

PIPE

Con¬

Com¬

.

years

are

ing policies of the manufacturers
participating in this

BUCKEYE

C.

payable

Statement of Recorded Cost of Work Performed
During the Thirteen Weeks
and the Twenty-six Weeks Ended
June 30,1947 and June

Twenty

becoming

NOTICES

COMPANY

August

holders

tomers

ies

allotment basis,
approximately half the reporting
companies expect shipments .to
run
ahead of new orders..
on

THE

materials,

PREFERRED DIVIDEND

Conscious"

cautious buying typical

market

other

gradually

com¬

Financial

Park

York 8, N.

new con¬

some

Salary

mission.
mercial

wholesaling

more

DIVIDEND

as

abundant, producers report

goods.

supply.

relationship between new
and shipments
during the

the

some

a

-

which

industries

some

particular

no

certain

coming six months is expected to
the lessening of demand

Analyst-Salesman

For

much

re¬

suddenly

from their current high levels.

materials, the
as

could

sult should prices recede

time.

reflect

Wide

inventory losses which

Most cancella¬
tions which have occurred are at¬

a

New Orders and Shipments
The

For these

possible.

holders

Problem"

an

orders

obtaining

general rule is to buy

The

Cancellations

&

Place,

are

major

and many producers have adopted

.

securities.

the

Much of the caution evident in
the replies stems from the fear of

price

Buying "Cautiously and Increas¬
ingly Price and Quality

Sales

the

short,

inventory controls
constantly checking to
buying to a minimum.

are

sufficient supply to maintain
op¬

re¬

adjustment clauses in
continuing to decline.
In some cases, however, escalator
clauses are
being requested by
customers with today's price set
as the
ceiling, so that they may

Sales estimates, of course, are
influenced by changes in volume

Associated with firm dissolving.
De¬
sires new connection.
Twenty years'
experience. Originates own situations.
Commercial

of

and

parts which

peacetime

COMMON DIVIDEND

Physical Volume and Dollar
Value

or

critically

Chronicle,

25

petroleum,

other materials
still

of items such

case

coal,

39

cut forward

Considerable objec¬

escalator

"ersatz"

'

.

steel,

somewhat inferior product are be¬
to

In the

excesses.

and

war

a buyers'
becoming increasingly
evident.
Competitive influences
are being
brought into play; price
increases are being strongly re¬
sisted; and substitute materials
not
measuring
up
to
quality

ing rejected.

report

many

inventory policy is be¬
ing carefully reviewed as a first
step toward eliminating possible

is

changes

and

or

and

that their

early postwar periods to

market

state,

strong

Trends in other in¬

average

over

twenty years' experience. Box A
Commercial
&
Financial

down¬

Return of Buyers' Market

but

increase

been

balanced

more

are

an

back¬

expected to continue.

dustries, according to the major¬
ity
viewpoint, are
as
follows:
steel, unchanged to lower; general

machinery, unchanged
lower; special industrial ma¬
chinery, unchanged to higher; of¬
fice equipment,
higher; railroad
equipment, no change; chemicals,
higher;
woolens
and
worsteds,
higher. For companies, estimating

SECURITIES

has

moreover,

shipments

industrial

UNLISTED

duplications

The trend in

ward in many

to

SITUATIONS WANTED

which

to

problem facing producers today in
relation to inventories is their un¬

contracts is

to sales trends
among ex¬
a number of
important

industries.

Long established unlisted securi¬

ders, however, not much drop in
shipments will necessarily follow.
For some producers,
backlogs are
sufficient to support operations at
capacity for many months ahead,
although it is not always certain

ing

ecutives of

TRADER-SALESMAN

in

ported and the practice of includ¬

1947

WANTED

be

second half of the year with a
substantial volume of unfilled or¬

tion

first half of the year. In compar¬
ison with the last half of 1946, exHELP

equipment,

coverings
and
paper; higher for special indus¬
trial
machinery, food and lumber;
unchanged to higher-for steel and

all companies

orders to

new

Inasmuch as the major¬
ity of manufacturers entered the

the

Slightly more than half the
companies reporting believe that

ing itself in greater caution in
buying characterizes replies from
the executives surveyed.
;

depressing effect of

Forecasts—In
Last

Increased

optimistic be¬

strikes last year.

among their customers.

expect

the lead.

(459)

dividend

is

payable

September

1947, to Stockholders of record
of business

at

1,

the close

August 7, 1 947.
STEPHEN

L.

UPSON, Secretary

of former

stock

issues

entitled to issuance of

of the

common

stock

($1.00 par) in exchange for their
holdings will be paid this dividend when
exchange is made.
CHAS. F. BRADLEY, Secretary
One Broadway, New York 4, N. Y.

Thursday, July 31, 1947

& FINANCIAL CHRONICLE

THE COMMERCIAL

(460)

40

Letter to the Editor:

Doing More for the Most People
BeVind-the-Scene Interpretations
from the Nation's

vested

wanted

can't be
won't

The

held

Marshall plan was

until Congress quit
for two reasons:
(1) the law¬
makers were in no mood for
further piecemeal foreign aid,

in abeyance

ready

the President wasn't

(2)

Marshall pattern
in its entirety, or to name an
overall cost in terms of U. S.
dollars.
Postponement wasn't
to submit the

of an interna¬
tional
economic crisis you can
look forward to this possibility
the

In

absence

(1) President Truman in October
or November will summon Senate

foreign affairs commit¬
for a chat on the Marshal"

and House
teemen

Senate and House
committee hearings, perhaps joint,
will follow; (3) foreign rehabilita¬
tion legislation
will be drafted
and ready for floor debate early
in January.
That's the shape of
things as they look now.
(2)

formula;

But don't be

misled into ex¬

pecting political harmony on the
Marshall mosaic.
That won't

get
what he asks for, will have to
accept fewer billions than he
wants. You can mark this down
as certain—isolation inclinations
on
both sides of the political
aisle will be more apparent, and
effective, than at any time since
the war. Collectivism is on the
Truman won't

materialize.

decided

had

deadlocked,

1

had

he

was

be¬

*

*

*

ify

as

cashing agencies of savings
shortly receive Treas¬

tion

regulations on cash redemp¬
of terminal leave bonds. Since

the- bonds

price investigation to
be launched in September by Sen¬
ator
Taft's
joint Congressional
Economic Committee is apt to be
Consumer

transferable,

not

are

rules will stress the need for com¬

thereby
force
domestic
prices upward. That could hap¬
pen under the bill's language.
(3)

$50,000 keyhole

Senate's

The

*

*

*

To be on the

spot and prepared

pressure

against sugar industry
for a low quota, the in¬
consumers

to

fight

scrutiny of RFC is to be a dull
First weeks

affair this summer.

will be devoted to gumshoe re¬

hair-raising until Banking Com¬
mittee hearings open in the

fall.

*

*

That Reed bill returning bank¬

fi¬

American

nancial assist¬

Peru

to

ance

in connection

-for the most

more

the

with

peo¬

war

Berkeley - Williams

effort, he an¬
nounced
that
some

tecting manufacturing plants from
FPC domination and returning to
the states control over intrastate

resumption of interest pay¬

undertaken soon.
got the money but forgot the

Secretary

by

Agreement

of

State Marshall to defer revital¬

izing German industry has
ed

jolt¬

planning

Washington

our

European
eco¬
That's widely
just as widely

delay

nomic resurgence.

acknowledged,

In the long run, it's

deplored.

to cost our taxpayers
*

from

tural gas.
-

■

■

hurtfully.

and commerce

pert of the U. S. Military govern¬
ment, Federal Reserve Board

ment

commitment

the

to

drive

labor's

Organized
co-ops

the

Committee

ment was the

is to rise as an obstacle

a

hear¬

opens

.

commit¬
to reach

holders

with

settlement

November on the
withdrawing of preferential tax

treatment frohi co-operative en¬

of its

defaulted bonds.

the Export-Import

next

ings

CIO and

terprise of all shapes.
AFofL

are

More

efforts

both busily fostering

promising

are

Announcement of the loan ap¬

reward

a

revenue

bring

howl

a

*

*

announcement of
subsequent an¬

or

commitment

lapsed, hence the error in my

had

action.

lective

any

nouncement that the

of col¬

ardent exponents

these

saw

condition

the

taxes is
from

with Federal
to

never

I

in the newspapers but

peared

Any congres¬
sional talk of cutting into co-op
prices.

lower

of

protect

taxpayers.

formation of co-ops the country
over,

to the officers of
Bank in their
the American

power

to

letter.

*

(Signed)
housing

A

by

investigation

a

WILLIAMS

BERKELEY

Member M. S. Szymczak tersely
rupt railroads to stockowners is
joint congressional committee was
political de¬
"The reconstruc¬
302 E. Grace St.
in very real
distress.
Deriding tells us that
authorized just before adjourn¬
rivation and intent. The commit¬
it as an instrument of Wall Street tion of the European economy is ment for two reasons: (1) Repub¬ Richmond
19, Va.
tee
membership
is bi-partisan.
speculators, opponents blocked a inseparable from the rehabilita¬ licans were worried because they
That means the hearings will be
July 26, 1947.
Unless this
vote
before
adjournment.
Wise tion of Germany.
hadn't done anything about the
bi-partisan. You'll be disappoint¬
money won't bet on passage next problem is solved we must either
housing problem; (2) Democrats
ed if you bank on anything start¬
provide further billions of assis¬
year, either.
hoped through a public probe to
ling—or constructive—from this
tance or see economic, social, and
*
*
*
Old
pin housing shortage blame on
jute box carousel.
political
disintegration in that
You can view Senate confir¬
.

for¬

continued failure of

the Peruvian Government

and

Ways

House

never

the

of

implementation

fight high prices with consumer

was

lapsed as of Dec. 31,
obstacles to the

One of the

1946.

certain

in Berlin as trade
and economics ex¬

After serving

received

conditional commit¬
for a credit of $25,000,000
the
Export-Import Bank,

malized and

*

*

*

*

*

that, although the

The facts are

Finance Minister of Peru

restricting FPC control over end
collection and distribution of na¬

when

*

bonds."

at that time a

Means

*

*

hubbub. It's of pure

a

Peruvian

the defaulted

on

utility operations; (2) blocked in
the Senate a House-approved bill

decided

alive their industrial users
activated in Washington
during early rationing vexations.

Don't look for anything

*

have

group

vying,

*

*

*

for

terms

ments

people, will prolong dollar div¬

plete identification.

hington

s

negotiate i

to

for the most

more

visited

ter
Wa

He

bonds will
ury

Fi¬

Minis¬

nance

must now accept

we

to keep

banks that now qual¬

The 16,000

It has been

true.

do

continue "to do

dustrial

President's

prophets

most

liars.

came

Regretfully

though the world had a surplus;

legislative dead¬
a bill kill¬

ing W Nov. 1 hit the

April,

bonds would be

broken and

desk—and

not

con¬

press

a

the President de¬
ever promised to

(3)

recess;

lock

this is

and abroad!

quash W; (2) this mistaken de¬
nial angered a Congress about
to

"In

1942, when the
Peruvian

continuing .to

can

ap¬

^

issue of July 3:

ple" without doubt and without difficulty if govern¬
ment will only mind its own business both at home

*

misunderstanding
ference query

search.

*

*

We

Aug.

f

peared in your

what happened: (1)

Then look

nied

in my
letter that ap¬

wealth

which

statement

peared

people."—William F. Knox.

Re¬

settled.
*

world

our

presidential edict revoking W.
*

creation of

of fact in the

error

an

following

and proceed in a manner that will assure

two worlds

talkers were quietly telling

It was all

the

with

stated.

as

Chronicle:

There is

people everywhere.

accordingly.

not to

Federal

W.

vacate

would

Peruvian loan

Editor, Commercial and Financial

apparent to others for a long time that there would
be two worlds and they have been proceeding

legislate on W. The President had
written Governor Eccles that in
the absence of such legislation he

wane. "
*

Just about everybody

lation W.

world

one

"Unfortunately

including Federal Reserve Chair¬
man Eccles—knew
Congress was

*

*

*

a

their friends to watch for an

*

*

*

time the

serve

inevitable.

only wise but

all the

long
amazing repeal of Regu¬
for

showcase

will

We were not pleased with the crop har¬
the basis of our first planting nor are we

through production and international trade to raise
the health and happiness and standard of living of

possibility.
seum

on

Berkeley Williams announces Ex¬
port-Import Bank did not make

pleased with the new crop which appears to be
growing following V-J Day.
.
.
.
"We in America have been fooling ourselves since
V-E and V-J Days.
We thought that everyone

Odds are against it.
That's now. But foreign intangibles
projected with adequate clarity to guarantee this situation
change by fall.
Best think of a special session in terms of a

gress.

youth.

our

yet—definitely—against a special session of Con¬

decide

Don't

our

And You

Capital

Makes A Correction

life has twice planted in Europe
national resources, our money and the flower of

"America in my

Washington...

*

.

f

>

Reorganization

*

*

*

Real fact is that

candidate
scrutinize

Presidential

Taft didn't yearn to
high prices in the

spot
Connecticut's
Republican
Baldwin who also likes to

public.
by
Ray

He was put on the

presiden¬

think of himself as a

possibility.
Mr. Baldwin
dreamed of a price probe with
himself as chairman, introduced

tial

rounded
up-^articulate backing.
Reluc¬
tantly—and somewhat glumly—

legislation to that end,

Baldwin am¬

Taft throttled the

announcing his own
would go into the
corners of the country and

bitions by

old Federal
Trade Commissioner William A.
mation-of

Ayers to another office term as
evidence

try to stretch the
sumer dollar.

shriveled con¬

past

#

*

*

will

alike

strive

fashion the

to

price probe into voter bait. But
get hooked
themselves. Congress hasn't been
realistic about the impulses be¬

the committeemen may

price rises, has indulged in
batch of fancy promises, and

hind
a

Taft

the

may

crew

find

itself

wriggling on the barbs of public
resentment — and misunderstand¬

ing—before the year's end.
*

*

late
call

for

that * agency

back to Washington from

Phila¬

delphia by early fall.
*

*

Lowell

Commissioner

Truman's"

President

missioner

Ewin

the crack-down

die¬

of

exponent

drive

its jurisdiction over

electric and

the

whole

committee

recom¬

mendation that Congress

provide

into

down

money

a

erate into

wake rather than a

a

Hopping

march.

victory

possibility
violated

a

that

FPC

Special to

of Federal funds to
influence legislation. These

penditure

probes are going
as

forward pri-

well as officially.
heard of this.
*

mone

of

or

be—shall

the

to the staff

Slayton & Co., Inc., 408

Olive

M. S.WlEN & Co.
ESTABLISHED

Street.
Members

With Herrick,

Waddell

*

(Special to The Financial

40

N.

Y.

1919

Security Dealers Ast'n

Exchange PL, N. Y. 5

HA, 2-8780

Teletype N. Y. 1-1397

Chronicle)

a

study be ended

conducted by FTC alone?
*

New Issues

7

MO.—John F. Disi-

has been added

♦

to

Securities

The Financial Chronicle

ST. LOUIS,

officials

law prohibiting ex¬

& Co.

With Slay ton

mad,
the

lawmakers are investigating

survey

faces

Domestic & Foreign

for more public housing.

of cor¬
Here's what FPC achieved by
LINCOLN, NEB. — Wyatt B.
dilemma.
It's a real dilemma, not imagined. feeding misleading propaganda to Barger
is now connected with
Here's why: (1) the House first recognized New Deal news col¬
Herrick, Waddell & Co., Inc., of
told the agencies to end the joint umnists: (1) stopped in the House
55 Liberty Street, New York City.
study, withheld all funds; (2) the Commerce Committee bills pro¬
Senate thereafter applauded the
survey,
voted $200,000 for FTC
and $300,000 for SEC; (3) Senate
HAnover 2-0050'
Teletype—NY I-97I
and House finally compromised,
withdrew all SEC money, let FTC
Firm Trading Markets
have $100,000. The dilemma seems
finance

Rails

shake

will

thing

can

natural gas utilities may degen¬

More will be

*

SEC-FTC

bet

Power

sidetrack legislation curbing

*

Joint

Federal

propaganda

Commission

.vately

philosophy.

*

*

Com¬

Davis,

L.

bureaucratic

hard

Mason,

personal

and

friend,

Republican

*

.

FOREIGN SECURITIES

'"Seaboard Fruit Co.,lne.
General Products Corp.

Susquehanna Mills

Empire Steel Corp.
•Prospectus

on

Request

*

All Issues

legislative




there's

Act

extension

gress.

sweet

for

tary

voted

by

of Agriculture might (1)
the annual national sugar

create

(-.AM. MABKS 4 r.O-

a

INC.

Con¬
FOREIGN

They're afraid the Secre¬

quota below
mu-

nothing

them about the five year Sugar

fix

*
.....

Washington's
"•■'cfeo?v

all-out-for-business

the

tween

*

*

*

Succeessful

You

colleagues.

Industrial sugar users will tell

be

moving

Ayers

"

to

GOP

their

vital area."

*

repatriated by
September. Present plans
may

Mr.

so.

wields the balance of power be¬

you

SEC

or

year

the

operations

FTC

acterized

porate

Democrats and Republicans

FTC is to continue its

mildly conciliatory attitude to¬
ward business which has char¬

committee
far

80-year

actual needs;

(2)

scarcity at home even

SECURITIES

SPECIALISTS

50 Broad Street
AFFILIATE: CARL MARKS &

New York 4, N. Y.
CO. Inc. CHICAGO

lill, Thompson & Co., Inc.
Markets and Situations for

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