Full text of Commercial and Financial Chronicle : July 4, 1946, Vol. 164, No. 4504, Section 2

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ESTABLISHED 1839

Final Edition

In 2 Sections-Section 2

Reg. IT. S. Pat. Office

Volume 164

New

Number 4504

Price 60 Cents

York, N. Y„ Thursday, July 4,1946

Bowles' Resignation

price control impasse could definitely be
regarded as permanent, the thoughtful observer might be
able to find it in his heart to forgive much of the shabby
drama by which it was reached. Its permanence is, however,
obviously open to serious question, and eveii the general out¬
lines of any denouement which may presently be reached,
if any is, are at this moment beyond the ken of man. Such
uncertainty must of necessity create an atmosphere in which
many branches of business will find it exceedingly difficult
to operate normally. The general unsatisf actoriness of such a
state of affairs may tend to strengthen the hands of those
who wish to fasten sweeping controls upon the economy for
all time—for that is precisely what many of those surround¬
ing the President would like to do.

Passage of Amended OPA Ex¬
he proffers resignation

tension. Bill,
as

-

Truman

accepts

..

.

Chester

former

-Bowles,

Stabilization,

on

June 28, in a letter

•

ing an abundance of the things which make our standard of
living by all odds the most exalted anywhere in the world.
Let us not permit the President (doubtless in perfectly good
faith), repeating the "ventriloquisms" of Chester Bowles,
Sidney Hillman, Secretary Wallace and the others, to frighten
us out of our wits with the spectre of "no control at all."
'

(Continued

132)

on page

Washington
Ahead of the News
By CARLISLE BARGERON

colleagues and bemoan the fact that Roosevelt never consulted the
Congressional leaders about the formulation; of policy, v He merely
sent up bills with instructions to these leaders that they be passed.
It is the job, of course, of the incumbent party's leaders in Senate and
House to maneuver the administration's program through to succesful

5

But

kicks in the pants. Congress' fail¬
ure to enact his program—-the full

they are sup¬
posed to be in
on

the formu¬

lation of

w

e

the FEPC, the
national health program,, etc., is
cited as an example. But the plain
fact is that on no single part of

that

never

r e

,

i

this

n

Roosevelt's
him

such

consult

Congress.
leaders

ex¬

10.

The

saying

that

to

did Tru¬
single member of

program

a

Not

had

one

the

e x-

as¬

upon you from time to time

Bowles' letter

leader

jority
the

came

mere

Senate
to

Carlisle Bargeron

be

It

and

mechanicians, men who had the
knack of marshalling the neces¬

proposals handed

that this situation
would be continued by Truman.
It is amazing

is

Congress
of the

political

sary votes on
down to them.

dent.
power

dent.;
It

whole party in
party leaders in
just as much a part

are

policy making

as

possible.

The

to

serve

Truman's

part that he doesn't
abide by this. It must be this be¬
cause he is not of the dictatorial
sort.
He has no hope or desire of

bill

the

pass

flatly im¬

would

simply

legalize iriflation.

The

would

of

cost

rapidly.

be

and

the -White

House which Roosevelt had creat¬

ed, but that the men on the Hill
responded to his kindness with




succeeded

inadvertently in doing

it.

Black

delays

in

markets

production

likelihood of

with

>

the

on

135)

page

•

Page

Situation.

129

Regular Features

case

of his OPA

(Continued

on page

veto, he
138)

and

trust company

Second

in the Second

trict:

Trading on New York Exchanges..

.140

.

se¬

curities. On October 8, 1945, prior
to the

urging refusal

of the

loans

of

.

j

'

Commodity Prices, Domestic Index. 142

Carloadings

Weekly

Engineering

..........

Construction.

.143
.

Paperboard Industry Statistics...:.,

Weekly Lumber Movement.,.

e

r

govAllan Sproul

rim en t

security,.

The text of the circular

...•

-ifi• of New York
Circular No. 3103

>:■

140

June
Loans to Purchase

26, 1946

Government

Securities

'

Oil Production...... 141

Non-Ferrous Metals Market.

follows:

Federal* Reserve Bank

141

Moody's DaUy Commodity Index...,. 140
142

Weekly Electric Output..........;*. 139

from

customers

which

apv

tive purposes.
It was recognized,

however, that

there would be instances in which

143

139

tions

loans

peared to be entered for specula¬

:

140

143

.•......

them to decline to
for speculative pur¬
chases of government securities
and to decline to accept subscrip¬
make

pur¬

;

Victory Loan, the Secretary

requesting

chases of any
federal

Review.........;..,........ 132

Weekly

of

spec¬

-

'

loans to facilitate specula¬

Treasury addressed a letter
to all banks in the United States

for

the purpose

making
ulative

-

make

and

133

-

The program of the
govern¬
ment for the financing of the war

tive purchases of government se¬

140

Trade

Dis¬

emphasized that banks should not

NYSE Odd-Lot .Trading.;............

■

Reserve

v/',?

Gov¬

on

Items About Banks and Trust Cos..
-

Federal

outlining a
policy for

curities

.............129

State of

Re¬

District

serve

ernment

Washington Ahead of the

and not to accept

,

loans

••

interruptions affected
one major industry after another.
Having gone through the terrific
upheaval of war—a war with dis¬
continued on page, 136)

June

Federal

Editorial
f^■■■;V-.;
,

■'

in

extensive

26, Alien Sproul, President of the:Federal Reserve;
Bank of. New York, addressed a circular to the president of each
On

bank

GENERAL CONTENTS

News

less

But even so,, we have
through seven months in

them to decline loans for speculation in Government
subscriptions for bonds which are
entered for speculative purposes.
Holds such loans dangerous in¬
flationary potential.
\
securities

general breakdown

a

(Continued

Financial

and

scoped

trict urging

would

in administration. Government it-

Weekly Crude

In the

manage-

duration
their

lived

Allan Sproul, President of Federal Reserve Bank of New York, ad¬
dresses circular letter to banks and trust companies in Second Dis¬

climb

multiply. There would be serious

..

Congress

when

Wains Banks Against Speculative
Loans on Government Bonds

inevitable.

living would

There has been all sorts of bunk browbeating Congress the way in Fertilizer Assqciation Price Index..,
written and spoken that Truman which Roosevelt did.
He would Weekly Coal and Coke
Output..;...
set out to undo the ill-will be¬ be terribly uncomfortable if he Weekly Steel Review......
tween

But

*Statement of Mr. Green before

y

Thousands of substantial price

General

sheer ignorance on

;

v

price control bill

Senate today would be

the Presi¬

■_

must be

:

possible better income and ex¬
panding opportunity for produc¬

of prices and

likely to

seems

slightest knowl¬

the

turn to peace
make

Green

1946.

President:.

Effective control

of the party

the

William

Dear Mr.

which

taking into
account America's
indu&trialgrowth since that
time—the recent postwar strikes
proved to be much shorter in their
vast

re¬

work;

of
to

which followed the last war—and,

to

certain

would

tive

grips

war

Day a wave of strikes and wide¬
spread industrial unrest swept the
nation..
Compared With strikes

was

and the President's reply follows:

Moody's Bond. Prices and Yields.... 140

of

facing the fu¬

the

from

their difference wide and some¬
times irreconcilable.
A few short months after V-J

and

wanted

transition

relationships between
costs, prices and wages they found

employers

ture

to

came

of economic

the Special Subcommittee of the
House Labor Committee, July 1,

the Administration program. The
Administration is not the Presi¬

ma¬

all

labor

economic- realities

peace, when they came to deal
with the war-wrought distortions

wage-

earners

and

the

which work

The text of Mr.

of' the

the

objective

all

of

ment

with

sudden

for counsel,"

From

and

The

that

edge of it before it was sent up.
It is silly then to argue that it is

House

work

in

e

end, American industry, including both

peace¬

time

make,

pressing:
call

d

an

Bowles' stand

h i 1

an

justment
to
peacetime
prod u cti o n

nearly identi¬
cal.
Both

w

to

war came

accept
resigna
t i o n,
and
praised: Mr.

"that I may continue to

surance

J:When

:<

management arid labor, embarked upon a difficult and challenging
task of read♦

the

regard to
price control,

Bowles

Chester

had

he

alternative

but

*

re-

alted positions
the Speaker

as

.

so-called

man

Under

time.

July

employment bill,

p r o g r a m.

They

effect

no

increases

y v When Truman was in the Senate he used to sit around with his

take

plied,

i

rents under the

From

his

President

•

passage.

Truman,

resignation to

to return to our American system of doing
things,
'American effectiveness in producing and distribut¬

>

Presi¬

to

submitted

'

we are
our

OPA

Administrator and at present Di¬
rector of the Office of Economic

diate consequences. At some date in the future we should,
in any event, be obliged to get along.with "no control at all"

arid

of; workers

unionization

,

•

keep the record
straight, even at the cost of considerable repetition and at
the risk of tiresomeness. Once more let it be unhesitatingly
asserted that the "no control at all" bogey of the President
is no calamity. Quite the contrary, it is, or would be, a very
definite blessing in the long run, no matter what the imme¬

if

strike tie-ups

have been exaggerated. Denies striks are result of
and protests against legislation which
H would weaken collective bargaining and undermine unions. Holds
resignation with regret and remarks
wage issue; arising from disparity between living costs and workthat coming on eve of passage of
ers' earnings, is dominant cause of industrial strife. Urges imOPA extension, it refutes charge
provement in collective-bargaining process as remedy, and accuses
that Bowles sought to perpetuate
i Congress of more eagerness to enact restrictive labor legislation
himself in office.
'
?ithan to eliminate cause of industrial unrest.\
President

veto.

It would appear essential, therefore, to

•

i

July 10. Tells President that bill
legalizes inflation and urges iti

President, American Federation of Labor

y

Asserting that, due to war-wrought distortions of relationships be¬
tween costs, prices, and wages, labor and management have found
their differences sometimes irreconcilable, Mr. Green maintains that

.

Director effective

Stabilization

dent

Keep the Record Straight

By WILLIAM GREEN*
: ;

On

Copy

Causes of Labor Strife

Accepted by Tinman
If the current

a

To

the

and

President
Trust

of

banks.

It

was

understood

that

these loans would be repaid out

Bank of; income and would have
(Continued on page 138)
in
the

each

Company

purchasers of securities for invest¬
ment
and
not
for
speculation
would want to anticipate income
by borrowing temporarily from

ma-

130

THE COMMERCIAL

which
six

& FINANCIAL CHRONICLE
United

the

million

Announces dates of payment by member governments of capital

V The

subscription

the

and also lists the amounts to be paid

quotas

individual members.

>

^

.

by
»

.

Eugene Meyer, President of the International Bank for Recon¬
struction and Development on June 20 issued the following; statement:
.

The
for

Re

or

one-hundredth .of

and

Development
has

*

fixed

June

1946

25,

Member

the formal

as

for

date

the

make another

selection

The

was

date

a

necessary

under

the

terms of Sec¬
tion 8 of Arti-;

II

cle

Articles

of Sept. 25,

as.

tional currencies."/
The

of

of

amounts

a

calls for capital as a

INDIVIDUAL MEMBERS

/Y:>/! ;/::>///, Z (In Dollars)

>1,

—2% Gold

or

proud. :,v/ *•"" yt ,//
Not

country cooperated

U. S. Dollar Equivalent

Balance

;

Bolivia

Brazil
Y Canada

Cuba—'

350,000

700,000

2,100,000

3,150,000

5,250,000

10,500,000

9,750,000

16,250,000,

32,500,000

11,940,000

12,000,000

18,000,060

39,300

// 40,000

Ecuador

!

696,500

?

;

320'

Honduras

'

India

1,050,000

1,750,000

3,500;000

6,250,000

2,0.40,000'

3,400,000 '

12,500,000
6,800,000

/>
/
>

/•> 96,000

1,200,000

20,000
:60,000

30,000

1

>

9,000,000
>

160,000

/: >320,000

2,000,000'

s

,

4,000,000

50,000

100,000

90,000

150,000

300,000

22,500,000:

45,000,000

750,000

1,250,000

2,500,000

60,000

100,000

200,000

fej

40,000

"•/200,000

13,500,000

500,000

;

.

100,000'

,

W-

3Q;000

20,000

30,000

50,000

12;000,000

20,000,000

40,000,000

720,000

1,200,000

2,400,000

300,000

600,000

600

Luxembourg

>

Netherlands*

8,000,000,

.477,600

/ 180,000
/ 300,000 /

120,000;

199,000

6,500

1,293,500

1,300,000

1,950,000.

5,472,500
15,920

5,500,000
/ 16,000

7,250,000

80

-

;

20

/

80'

■

v

■

1,500
12,500

10,000
United
Kingdom.,-/130,000
United States.//':.:
317,500
Uruguay
/ 1,050
*

Yugoslavia

4,000

-

v

'■'/y 16,000

348,250

350,000

298,500

...

,450,000

;;

20,000.

// 80,000

40,000
875,000 "

525,000

80,000
5,000,000

1,750,000
1,500,000

750i000

2,500,000

3,750,000

6,250,000

12,500,000

3,000,000

5,000,000

10,000,000

25,870,000
63,182,500

63,500,000
210,000 '

•

65,000,000 130,000,000

39,000,000

95,250,000 158,750,000 317,500,000
315,000
525,000
1,050,000

800,000

,796,000

Defense

vessels available to take it abroad.

'The. .Famine
mittee

;

Emgrgency v Com¬
of

been

has

at

assistance

>

invaluable

stage

every

of

the

program, and much of the credit
for ita success is "due to the work
of

Mr.

Chester

of

the

Davis, the chair¬

Committee, and Mr.

the 'honorary

'Hoover,
.

;

.

In

meeting the goaf, there Were
many obstacles" to overcome—in¬
cluding time.' Not only did we
have to reapportion our total grain
ippply in order to share more lib¬
erally with the peoples abroad,
biit

it

was

bagging

to

necessary

and

procure

containers,

which

short, to work out a time-table
facilitate transportation of the

are

to

grain to- ports, and finally to load
it: as expeditiously as possible, so
as

to make the bed use of all

1,200,000>r 2,000,OOOP

4,000,000

transportation facilities.

The Of¬

fice of Defense Transportation and

the War
as

well

Shipping Administration,
the other agencies con¬

as

cerned, have done
job in thfe respect.
the

under

remarkable

a
„

•

June

27

issued

statement

a.

the; world

on

food situation, together with a report on the subject by former re¬
conversion director John W. Snyder, Associated Press
Washington
advices stated.
the

The President declared

that

in another three

weeks

national

and

all

but

whose

program

was

so

sue

May 25, 1946.
The sole
was in paragraph V, in
the. Swiss Delegation stated

zerland

on

United States- wheat and four
The June, shipments of United

States bread* grains are the high¬
est on record. : Z / /;/ *
■+'
1 The

July: shipfhents necessary to
the

six million

ton

goal—

deducted/ from .• the
250;000,000
bushels of grain which are sched¬
uled

irjtoi effect
the

Swiss

ject

ratification by

upon

Parliament.*

is. expected

The

over

when

we

.reach

our

half-,

goal. Cooperation and deter¬
mined effort by
the public—by

year

each

one

of us—must be continued

dufing the coming months of hun¬

The

July//>!////

for

export! during 'the

months^ to

come.

Americans must

be

to

discussed

the

in

Swiss Parliament
itfe current session.
'

,

/

'// '

/////// Mexico Securities

>

but not counted

as

report submitted to the President
part of. the six-million-ton goal,
by Mr. Snyder, dated June 26, as there has been sent abroad since
a

.given by the Associated Press:
The
United
States
will
fully
meet its half-year goal of six mil¬
lion tons of food grains for fam¬
ine relief throughout the world,
buf final shipments to complete
the total will not leave our ports
until after the 1st of July.
By the end of June, an esti¬
mated total of 5,500,500 long tons
of food grains will have been sent
abroad since Jan.
der

of the

1.

The remain¬

six-million

total goal
in possession of the
government, much of it on the way
to ports
or
at ports ready for
loading.
The high rate of export

is

already




Jan.

1 a total of

of other

294,500 long tons
rye, barley,
shipped before the spe¬

grains—oats,

and

corn

cial

bonus

corn

famine relief.

Only

was

;•

those

grains

procured for

>//v
which, will

have actually left port by June 30
are included as
shipments,, not in¬

cluded is

grain

now

in elevators,
at the port

en
route* to port or
for loading after June 30.
/"
As soon as the total actual June

shipments
committee

are

known

the

sub¬

grain of the Inter¬
departmental V Committee! ::;on
Transportation will be able to de¬
on

termine the exact date in

July

on

"•••.. ■•/.

of

-

the

The

Co., as fis¬
agent,., is. notifying holders; of

their part that,

announced, provides for the elim¬
ination "of German J interests: in

Switzerland of
francs in

250 million

'■[

terms of

an

the

agreement dated Nov.

5,11942, that payment of the July
l; 1946, interest coupon will be
made at the office of the fiscal
,

agent, 70 Wall Street. - The notice
says; "Holders of. securities who
have not yet accepted the offer
of the. Mexican Government for
the

,

May 25, 1946

fin "the

v

course

of the discussions

1.

which, have taken place, the Al¬
lied Governments, fully recogniz¬

ing/Swiss

sovereignty,

wrongfully taken by

.

.

vi

'

sofar

on

stated it
unable to recognize the legal
of

these

claims

but

that

.;>->;/!;>/&>>>;©:?/.;

■

-y

.•

.....

.

undersigned representative

of the Swiss Government declares
his part that he is

The Swiss Government

/

.

on

Switzerland,

was

'

concern Switzerland.

I

;

/ The.

from the occupied countries
during the war and transferred to

basis

they

as

YZ

many

;

United States. /The
will be de->.

termined without delay. *
' ' '
/'
/ 2. The Allies will discontinue
'
without delay the "Black lists" in- h

Ger¬

behalf

of

acting also \
Principality of

the

Liechtenstein..

^

:

■

VI

it

desired to contribute -its share; to // In case. differences>off>opinion ,!! -' .1
the! pacification and -reconstruc¬ arise with regard to the application or interpretation of this Aci
tion
of
Europe,
including the
cord which cannot be settled in \
<'•i>•>'■
.

sending of supplies to devastated

areas//:;/^/./: .;?■//;!/:

any, other way, recourse shall
had to arbitration. *

!!./,//:>

I Irl these circumstances

we

have

shall

/Accord/ and

take

/ This.

Accord

been

liquidated

>

their

the-

ap¬

Annex

English and

French, • both/ texts having/, the
same validity.
* ; '
«
/,
Very truly yours, /';
■'

i.

*

•

•

:

STUCKI

.

,

;.

'

I

•A"

■

To the

■■
Chiefs! / Y
:|/yZ': ' > •
Of the Allied
Delegations, >
Delegations,;
[). C.
C. i /!//>//////
Washington, D.
,'..*•

£>'1

■

ANNEX
kNNEX

I

in.

In each such

case

an.

iden¬

A.
■

Property

Germans

'.■/"

Switzerland will, out of funds
available to it in Germany, fur¬
nish
one-halfZ of
the
German

/

V/'//-'

shall

be

required

debts

into

functions

name

of

to

with

it

in close
Joint

a

which shall be
resentative

of

of

a rep¬

the

three

each

the

tion

coopera¬

of

Swiss

an

the

to

Bank

pay

account

Swiss
and

their

in

the

Compensa¬

Office, with the

tional

Commission

composed of

y

Persons in Switzerland in¬
debted to Germans in Germany
a.

The Swiss Compensation Of¬

entrusted

of

■

necessary for .this
pur¬
///> :>■>!/;!///;',:*.//■/-

the

Switzerland

in-

IV

manner:

money

shall, exercise

in

Germany' as defined
below, -hereinafter
termed "German property," shall
be
liquidated; in the following

exchange shall be ap¬ :under

3.

tion

the > Annex /

The Germans affected by this

cord.

fice

and

Hove been written in

Switzerland pursuant to this Ac¬

4.

,

effect upon

mpasure shall be indemnified in
German money for the property

has.

*'/•

proval by the Swiss Parliament.

■ property.
This
provision
apply equally to the prop¬
erty of such other persons Of German nationality as are to be re¬
patriated.
"
' // *
•' •/ j A

2.

i

*

VII

This

::

pose.

be
-.

arrived at the Accord which fol-

sentative

.

j
»

procedure

necessary

Germany and the exercise

Swiss Na¬

thus

absolve
themselves of liability.
*
b. All natural. and
juridical
.

persons

Govern¬

trustee, provided they have been ment.
The Joint Commission, as
duly registered as to non-enemy aE
.interested^ private persons,,
ownership,"..
;
; ••;
> •
shall*
have
a
right
of appeal
.

|
•

the •>v
'
of
States will unblock Swiss ■'r"

in the

assets

claimed

the

with

I

-

The/ Government

United

title t'v German property in Swit¬
zerland by reason of the capitula¬

Allied Governments, and a repre¬

may

j

•>

.

Gentlemen:

de¬

offer,

I

,

'J

,

procedures relating to the
application of the present Accord
are set out in the "Annex.,

.

posit

securities

y| /:

The

Swiss Delegation
Washington, D. C.

resumption of service on a
modified basis, but who- now de¬
sire to accept this
their

in accepting this

Ill

Legation of Switzerland

'

.

5

plied.

to

250,000,Z

zerland. AH questions relative to
such gold will thus be* regulated.

! Following are the texts of the
documents referred to:
I

?>

nection with gold acquired
during
the war from Germany by Swit-

Swiss

gold, payable, on demand

securities of the External Public-

have -assented

be

amount, they waive in their nam6 ///
and in. the/name of "their banks:, :

hi New York.

Debt of the United States of Mex¬

who

shall

property in Switzerland, for allo¬ -oi^-fssue .''aliz^iahns/yagainst 'the
cation of> half of the proceeds to Government of Switzerland and
the Allies, and for payment by the Swiss National Bank in con¬

tical rate of

ico,:

•

50%

Swiss francs payable on de- U V
mand in gold in New York.- The - - Z
Allied
Governments :declare, on '

shall

.

•

.

000

understanding, whose es¬
details have already been

sential

which

Pan American Trust
cal

of

ernments the amount of

during

such

shipments

.

•.•/-.•

*

proceeds

crop

and those to be made

bonus plan.
ger abroad."
- '/".'/■
The following is the text of the / In
addition,

administra¬

land undertakes to place at the
disposal of the three Allied Gov¬

sub¬

beginning July 1; but will be
irt addition to that goal.
" ! • >_

continue to conserve wheat, fats
already made
and
oils in order to share our
by the end
plenty with those who are starv*
of
June
include
5,077,500- long
ing.
,
;>{/''y/>'/;/!/* '
tons of wheat and flour
(in wheat
equivalent), and 423,000/tons. of
corn and corn
products especially
'
assigned for export under the* corn Notice ta Holders of

over," Mr.

"It will not be

II

the

Government/and

year

"But

not

the

of property in Swit¬
Germans in Germany
shall accrue
o
the Swiss

50%

behalf also of the

.

is

of

liquidation of German
■> //-:*
•
•>

liquidation

oi

before the middle of-

crisis

;t

-

.

been

cessfully. managed, we have been,
able in the past crop year to ship
through our.pnrts a record amount

send food to famine stricken areas.
the

cost

/>

1. Of

half-year goal of 6,000,000 tons of wheat and bread
/ f L The Swiss Compensation Of¬
iThe Secretary of Agriculture
grains to be shipped abroad will have been met, and praised' the
fice shall pursue and complete its
has
wisely
laid
plans
to
continue
•cooperation
of consumers,
pro-^investigations >V of
property
of
ducers and governmental agencies shipments which has been reached the acquisition of wheat from the
every description in Switzerland
as well as the Famine Emergency
in- June will be continued until new 1946 crop, since world needs
owned or controlled by Germans
will. ;still be great for' many in
Committee in the united effort to the full goal is
reached—probably
Germany and it shall liquidate

Truman continued.

the
and

./>. //:

between

the Swiss

bear
tion

property.

one

of

. more
than 8% of the- total-—will- not be

on

gold,

Delega¬

that it acted

tion of

a(id; representing/ slightly
Truman

looted

of supreme authority within Ger¬
Agriculture,
many, and sought the return from
direction ;the pro¬
) Switzerland of gold stated to have

Secretary

curement

reach

/ .President

the

against the decision of the Swis3.
Compensation Office/ / / / /> > /
5. The Swiss Government
will

on

which

our

of

2,000,000
26,000,000

208,950

Office• of

other

:/ Through their efforts and those

24,000

300,000"! >

.

2,487,500
1,990,000-

wheat! arid

the

-

1,000,000

>

tion

of

Principality Z o f
Liechtenstein, placed at the disposal of the Allies:
Whereas, the Allies stated that for the rehabilitation of
countries
they acted on behalf of the Gov¬ devastated or
depleted by the war,
ernments signatory to the Paris
including the sending of supplies
Reparation Agreement. " > >
to famine stricken:
people. /,:/ \
; The/ understanding
will come
2. The Government of Switzer¬

ptocured

6,500,000

40,000

Allies and

text
'

■

——

partmehfof Agriculture,- which

27,500,000

500,000

Switzer¬

respect were exchanged

have

3,250,000

:?

2,500,000
>>"10,000..

6,000

loo.ooo

of

Letters identical in
the

released the

difference

100,000

.

the; Government

in, Switzerland,

17

——

related matters.

our

13,750,000

24,000

>

50,000

"

1,500,000

'4,000-

>// 15,920
,

>

1,000,000

3,980

v;;

1,750

Philippines

200,000

995,000

5,000

>

Poland

480,000

119,400

1,000

Nicaragua /
Panama

y

.

27,500

Mexico

Union of So. Africa

64,000
800,000

/

•

/» '

60,000 v

.40,000.,

20,000

///../_/././!/:" 2,400

Paraguay

200,000

19,900

Iran

Peru

.

.

>/-;• 100 1-:
19,900
40,000
7,960.000

Iraq

Norway

100,000

3;750,000

63,630

:

>

1,360;000'

39,800

100

3,500,000

'

'30,000,000 > 60,060,000

60,000

2,500,000

300 // 59,700
45,000
8,955,000
:
2,500
497,500
200
39,800

——a.,

Iceland

y

'/ 700,000

19,900

Guatemala

1,750,000

1,050,000
v

696,500

f:'f 796,000

,;t;

210(000

1,353,200

/>!///'' 4,000

—Z:.

140,000

2,437,500

Salvador100

Greece

22,500,000

6,500,000
700; 000

200,

Ethiopia

j|j

11,250,000

139,300

>/; 200>
'/ 3,500

France

.

'

J

■

6,467,500

Dominican Republic

El

>

5%.

ft

2,089,500

Czechoslovakia ;//--/' 12,500
Denmark.,,.*/ 6,800

Egypt

'

6,750,000

700

60,000
Rica-/—'--™

3 %

g

(

4,500,000

10,500
3,500

China

;: • y

4,477,500

/Z/l/ZZii/v/32,500/

Chile
Costa

/

■•/Total
.

22,500

Total
10%

June

on

constituting letters of understanding reached >

Governments

helped achieve this export record
by combined arid diligent effort".
These agencids: include the >De-

chairman.

•

in National Currency.

Deposit

.of" governmept

Annex,
Allied

the

^

'

.

land in the /recently concluded
negotiations cn German holdings

reducing
their own consumption of wheat
and
other bread
grains,* the
agencies

between
and

.

Department of "State

Accoid^and

by

•

legislature.

The

a

»/

'

only have the people of

Heibett

?

U. S. Dollars

Initial

Belgium

five arid

over

Swiss

'

,

tremendous one, of which the gov¬
ernment and the people can; be

man
AMOUNTS TO BE PAID^BY

,

Tganspbrtktionj" which/ got it : to
or or be¬ ports/and! the War Shipping Ad¬
25,! 1946, expressed in ministration, which/made -the

position to issue
preliminary U. S. .dollars, wilt be as follows;! -i
i
step toward active operations.
By Aug/24,1946; $153.4 million:
TheJ Bank
is
sending to the
By Nov. 25,1946, $767.0 million:
member governments a request
The attached1 statement shows
for the payment of the following
in U. S. dollars the amounts to be
amounts on their capital subscrip¬
tions at the times specified;
paid in by the respective members;
in

be

of

\ 1

be

capital .to

:/■•.//.//'////':•>/
paid in* by the members
Agreement in order that the Bank
fore Nov.
might

January,

half million tons of bread grains
in the first half of this year is a

trains; .the

Meyer'

Eugene

the.

of

call,

1946, for a further 5% of their
subscriptions, payable in their re¬
spective currencies on or. before
Nov.. 25, 1946., and that the Bank
will give early consideration to
the question of "calling up an ad¬
ditional 10%. of its capital in, na¬

last

Swiss Held German Assets /

on

Provides for elimination of German interests in
property in Switzer¬
land and a payment by Swiss Government to
Allies of 250 million
Swiss gold francs.
Proceeds from sale of property to be divided
equally between Swiss and Allies.
Accord yet to be approved bv

Mobilization

War

shipment of grain/

governments also' are

being notified that the Bank will

beginning
of
operations.
of such

before Aug. 24,

1946, less one
1 % already
paid in. 3% in national curren¬
cies on or before Nov. 25, 1946.

con¬

strue ion

of

Reconversion

The- record

in gold or U. S» dollars on

2%

The Accord

grains

be reached,

has performed an outstanding job
in solving problems impeding the

Inter¬

national Bank

goal of

bread

can

Committee, established by

Office

and

States

of

tons

for famine relief

Thursday, July 4, 1946

any

in

form

property

,

•

surrender

Switzerland who in

administer

are

German

to be required to*

these

assets

Compensation Office.

'

to

Such

the
ac-

'■' Y;

'

r

tion will germinate their liabil¬
ity.
The Compensation Office
wRl liquidate the 'property and
pay the proceeds; into the ac¬
count mentioned under "a."
c. The
Compensation Office

:
.

!'

THE COMMERCIAL & FINANCIAL CHRONICLE

yplivrne 1,64' Number 4504

7;

6rty suspected by it or reported
J oint Commission: as

■

terests /in Switzerland which Ger¬

to it by the

man

nationals {resident

•

in

131

Wallace Reports Boom in Corporate Mergers

Ger¬

being, or believed' to comprise a I many £a vev.through* such organi¬
Commerce Secretary Says trend resembles what occurred after
German ".property, or; to
be of zations and equally, to safeguard
; i <
World War I. *; Sees spectacular increase in absorption of small
doubtful or disputed bona : fide substantial "interests of non-Ger¬
i Swiss
ownership. The " conclur man persons which would other¬
concerns by larger and cites figures of acquisitions in recent months
/shall take title,to all participa- sions of the Compensation Office wise be liquidated/
{
; •
: *
covering various industries.
*.
'
"
Germans who have been re¬
*' 'tions in Swiss enterprises of or¬ will be. discussed with the - Joint
Since; VJ-Day there has been a sharp, increase in corporate mergers
patriated
before
the
first
of
Jan¬
Commission.
..:Y7^7v.
•
.7
\77
ganizations belonging' to GerF; The
;'
mans
in Germany
Compensation
Office uary,- 1948, or In connection with arid the acquisition of small firms by larger ones, a trend closely reand shall
sembling. the^- '
liquidate them. ' The proceeds will settle, in general or particu¬ whom, before; that date, a decision ■r:1 7"77:v7't'-;;:
corporate con¬ leries,, six wineries, one brewery^
of liquidation shall be paid into lar, in consultation, with the Joint by the Sv/iss Authorities has been
centration that one cooperage firm and one car¬
the
account, mentioned under. Commission, the terms and condi¬ taken that such persons should be
occurred
fol¬ bonated, water
concern
in
tions of sales of German prop¬ repatriated from Switzerland, are
the
to be considered as falling within
lowing World years 1940-1945. Four big distil¬
d. The. Compensation Office erty, taking into reasonable ac
the
lers
now
expression "Germans in Ger¬
not only control aproxiTWrir I, accord¬
{will similarly proceed with the /count the national interests of the
ing to a state¬ mately 60% of the distillery ca¬
liquidation of any otheri Ger-. signatory governments and those many."
ment
of
V
Sec¬
man property.
pacity of the nation but also own
*
»
I of the Swiss economy together
?
e. The Joint Commission wilt with the opportunity of obtaining
retary of Com-r better than one-fifth of the Cali¬
r: The Swiss Government under¬
fornia
merce
Henry
winery storage capacity, as
give sympathetic consideration the best price and of/favoring takes, in recognition of the Special
A, Wallace on well as half the aging California
to cases, brought to their atten- freedom of trade.
Only persons circumstances, to permit the three
June 25.
r
tion by the Compensation Of- of non-German nationality who Allied Governments to draw iinwines, Mr. Wallace said.
In the fourth
y
Seven of the largest steel cor¬
fice, relating to property of are in a position to present suit- mediately up to 50,000,000 Swiss
Swiss origin located in Switzer- able guarantees will be permitted francs updn the proceeds of'liqui¬
quarter o:f porations bought up more than 35
1945
land and belonging to women to participate in the purchase of dation -of
mergers smaller companies in the period
German. property
arid acquisi¬ 1940-1945. Through those acqui¬
of Swiss birth married to Ger- { such property, and; all possible against their share thereof. ThCse
tions reached sitions the big steel companies**
mans and residing in Germany,
measures, will be taken to prevent advances will be devoted to the
the
Henry A. Wallace
rehabilitation and resettlement iof
highest further extended their control <
The
Compensation .Office ^sales
.

_

■

■(

-

„

v

.

*

•

:

■

T

"

.

*

•

v

.

•

,.

,

,

•

will

make

assistance

sion to
a

every effort
of the-Joint

uncover

cloaking

with the

all transactions of

nature

whether

by

naWn
Dledse mortgage
morteaee or
otherpawn,
pieage,
or^uier

./■ wise, by which German property
.was
concealed, and will ensure
r
their annulment. t,/
:
The

C.

f

Office

Compensation

will notify to the Joint Commisv"

sion, for transmission to the com-

authorities

in Germany,
the amount realizd by the
petent

7

:

" tion

;

7

in

,

v

each

case

of

and addresses of the

man owners

of that property.

Ger-,
The-

competent authorities in Germany
will take the necessary measures

in order that there will be record¬
ed the title of the German owners
of the property, liquidated to re¬
ceive the counter value thereof in

German

calculated

at a
exchange.> An

money,

Commission

Joint

If the

consultation with the

after

Compensa-

of that office, or if

rate

of

party

Authority of Review, should

be final.

be

Allied

Governments to

in¬

quarter of 1948
sonal

of the Compensation Of¬

currence

fice and the Joint Commission.
•'

'VII

:

■&,

*

of the credit above mentioned.

7';7

II

Allied

-' ?•

w
;i t/:*'

j

.*
,

Ifi/ Klufzhicfc Resigna^ >

designated by the Swiss. Govern¬ ;. President Truinan announced-on
June 20 that he.had accepted with
ment, and a third member desig¬
nated by the four governments. regret - the resignation: of Philip
Mr jClntznick as Commissioner" of.
Any such difference which is not
of primary importance may, if the the Federal Public, Housing AiithJoint Commission and the Coitir o.rity.74 Mr.- Klutznick. has. -been
.

active in the Government's hous¬

Office agree,-be sub¬

pensation

a

normal

sear-

for

the

number

aqd ' pharmaceutical

;

-

V.s.v'-v

composed of one
designated by the three
Governments, a; member

member

.

D. C,

This- Tn- 3VIay:2^i946^ 7,

Arbitral Tribunal.

the

trend

one-third.

been .most pronounced among alf
coholic- beverage companies, drug

'

ernments desire, be submitted to Washington,
bunah shall be

was up

Germmi-owned i traded first quarter of. 1948 was below
mark or copyright shall be sold that for. the last quarter of 1945.
<
or
transferred without the con¬
Recent corporate merger^ have

decision of the Authority of
Review, the. three Allied Govern

t..

-

of
limited, he

; B. No

any

an

opportunities

However, following

the
: r ?• r

since" 19417 and
A. The
Compensation
Office
since May, 1944,* had headed the
will be empowered to uncover, of the Tribunal • who/has * been
various publ ic housing' programs
take into possession, and liquidate designated by agreement of the
four governments, who in such under jurisdiction of the FPHA.
German property,
Following V-J Day, he several
B. The Swiss Government shall cases will sit as the Arbitral Tri¬
ing

mitted for decision to the member

programs

companies,

dairy concerns, .paper mills, tex¬
tile -mills and metal- producing and

fabricating:plants.,

a *

*;

(,/In comparing, the present trend
with

out this Accord in collabo-

•carry

ration

>:

§ the

Governments

with, the

be restricted
or

;are

enumerated below;

C. The

-

;

Compensation

;

:

v■

Office

times indicated his desire to

;

.

proof of

as

turn

in

evidence produced be¬

law submitted to it.
decision of the

,7
:
Arbitral
.

The

Tribunal shall be final.
The.

expenses

Tribunal

shall

of
be

.

a

a

.

.

a

sioner

777-

charge

to

life,r but at the

direct

peacetime basis.

77Jn

the

Federal

:

said that the

on

the

proceeds of the liquidation of
German property, before their di¬

7^ "Perhaps the most lasting

con¬

,

•

7'

•:

;;

■ ■

-

Large chain grocery stores have
in recent years not only
acquired
smaller chains, but also have con¬
tinued the integration
of their
operations by purchasing meat
plants and small plants producing
specialty foods.
~
7 ;

One

:

large

drug and pharma-7
ceutical company, made 31 acqui¬
sitions between 1940 and 1945 and ;
extended

its

diverse lines

activities

into

such

baby foods, dairjr
products,
coffee
and
prepared
baking mixes. This company' is
one
of five leading drug and
pharmaceutical houses closely as¬
as

.

sociated under

one

interest.

To¬

gether they accounted for 30% of

of mergers and

wave

,: In the
paper industry, many
acquisitions starting in 1918 coni mills have converted
from news¬
tinued through 1919-, 1920 and the
print to book paper, and maga-*
early, part, of 1921, until inter-l

rupted by the post-war depres¬
sion.
Iri 192157 after prosperous
business conditions had returned,
the

absorption and. purchase

businesses

was

celerated

time
■

'
•

r

an ac¬

reached

all-

-f-rV:/

.'y/-

.

r:

-

v/

Mergers: Increased After

*

"

Pearl Harbor

-

;

;; The recent increase in
and ' acquisitions
began

after .the attack,

on

'

'

mergers

shortly

Pearl Harbor

continued during the entire
course of the war.
Most of the

and

mergers

occurring from 1941-1945
indus¬

involved' nondurable goods

tries. However, since V-J Day an
increasing
number * of - durable
goods industries, have been in¬

b$en a spec¬

tacular increase in the number of

absorbed

firms

Small

v

ones.

The

-

by

larger

v;'/77-//7;v':77777

-

.

highly liquid asset position

of the nation's

zine

publishers

mills

have

order

in

to

purchased

of supply.

source

-

their

assure

.

of

peaks in .51923 and 1929. 7

-.a,,

:

renewed at
and

rate

volved and there has

.

letter accepting Commis¬
Klutznick's :: resignation,

which takes .effect June 30, Presi¬
dent Truman wrote:
'
■
* /

Arbitral

the

private

office

Public Housing program through
its conversion from a wartime to

jurisdic¬

tion to consider all matters of fact
or

to

re¬

request of the President continued

regards the. nature

fore it and will have full

functions of the Joint Commission

.

,

,

The Arbitral Tribunal will not

of

States, France, and
•the
United- Kingdom.
For this
/purpose there shall sit in Berne or
7 Zurich a Joint Commission com1
posed of representatives of each
of the four Governments, which
;shall act by majority vote.
The
United

".

quisition drive, absorbing numer-;
ous
smaller,milk, cheese and but¬
ter factories in various
parts of

experierice following the the
corporate sales in the industry
Wortd War, Mr. Wallace in
1942,\:7
V

,

bunal.

,

our

First

-

Nothing in this arrangement shall hereafter be invoked by one or the other party
to this Accord as a precedent for
!; the settlement, of any Swiss claim
upon Germany nor shall it be al7 leged that the Allied Government
thereby recognized any right on
;.f the part of Switzerland to dispose

the

and

and. acquisitions during" the first

otherwise. transferred,
the concurrence of the

or

Compensation*: Office; and
Joint Commission. V „; :

'

"

sold

without

Nevertheless, if the Joint Com mission is in disagreement with

'

here, and pending the participa¬
tion of the Swiss. Government ip

the

said.;771;-777i:7.{7;777'";7
arrangements, no German- 7 : Compared with the first quarter
JtolnistrStve
in owned
patent in Switzerland shall of 194p, the number, of mergers
administranve m

the matter be referred to it, shall

steel

the country.

arrangements
intention of

it- is* the

it. will -have

years

of
to

such

n^omDt^d^inmle0^ The decisions

barrels,

other:

duced

three

-

and

small' business further

which

.

culverts

vite the Swiss Government to ad¬

multilateral

one

three members and shall be pre

production of steel

products. ■ ■
7 j'• ••*.■'
.f.:
Many giant dairy concerns that
were formed
through mergers in
the 1920's have renewed their ac-,

Pending ' the " conclusion

^Med Gov-

in Berlin.

If it continues for a number of

>

.7merits may, within one month, reamount.equal to one-half of the quire the.difference to be sub- 7 The, preceding provisions do not
total of the indemnities accruing nutted to arbitration as follows: apply to property in Switzerland
to the German % owners: will be
the difference^ concerns matters of the German State, including
debited to .the credit existing in covered by the Accord^or the An- property of the Reichsbank and
the name of the Swiss Govern-,nex or their interpretations, the the German railroads.,'
•>.:•" STUCK! r:i
ment at the "Verrechnungskasse"
difference may, if the
uniform

steel

and

important re¬
percussions on the nation's eco¬
nomic, system, primarily because
competition will be further re¬

A.

»

the matter may

the

over

VI

in interest so desires,
within a period o*
month, be ; submitted*to i "a
Swiss "Authority of Review..: This
Authority shall be composed of

the

since

1931

action, through the Inter-Govern¬
mental Committee on Refugees; U;

m.

decision

the

level

preliminary indications
are that the hign rate is continu¬
ing, Mr; Wallace said.
*
I

non-repatriable victims of German

tion
Office is unable nfrw
to agree to
+Via
if

liquida-J^ed
German J 7iew

property with particulars of the
names

$li

Commis¬

corporations, their

U. S. Gives War 7

Air Base to Egypt
;

Airfield,

Payne

multi

:
-

77
H

riaillion:

dollar wartime air base construct¬

ed by the United States near Cairo
Was turned over to the Egyptian
June

Government

and

15

the

withdraw
personnel
within six.

United States agreed to
all uniformed military
that 7
In

from

country
exchange for these
concessions Egypt agreed to cer¬
tain conditions required by the*

months.

United

States

scribed in
15

follows:

which

were

de¬

Cairo advices of June:
Associated

the

to

;

Press,

as

7

To make the field available to

United States military

aircraft for:

six months, renewable as may be.
ownership of well-established na¬
vision.
•
-:
«enter upon their functions as soon
your clear, sound enunciation of
tionwide outlets, and their na¬ mutually agreed upon; to design
the role of public housing as an tionwide advertising programs all
7 .-as possible after the coming into
nate 1 the field: as a civil airport
A. The
term
"property," : as essential i>art of a healthy private give impetus to the trend toward
rforce of the Accord.
available for use on a non-dlsused
in
the
Accord
and
this
An¬
D. The
enterprise system
and a well- further corporate mergers and
Compensation
Office
criminatory basis; to enter into a,,
Your
nex, 7 includes
all
property • of housed nation.
; will exercise its functions in col*
princi¬ acquisitions, Mr; Wallace said. ;
bilateral transport agreement with
f laboration with the • Joint Com- every kind and description and ples .have won the respect- and
Examples of Recent Mergers ;
7- rmission.
It will keep the Joint every right or interest of what¬ support of responsible leadership
the United States "in accordance
Commission periodically informed ever nature in property acquired throughout the country and have: 7 He .'gave the following exam¬
with the principles of the Novem¬
;about its activities; it will reply before the first of January, 1948. "broadened public
understanding ples of recent mergers and. acqui¬
-to
inquiries submitted by the For the purpose of the Accord of the importance of good housing sitions involving seven industries: ber, 1944, civil aviation, confer¬
:
Joint Commission relative to the sums paid or payable by persons to the national welfare."
During the first two 'months of ence at Chicago," and to pay - a

£tnd

the

Joint

Commission

will

.

.

■

-

-

tribution- you have made has" been

.

.

-

*

common objective, i.e., the uncov*ering, the census, and the liquida-

-

"

1

*

-

of

Ger¬
Clearing shall not be

Regret at Commissioner Klutz¬
nick's

German

inent of their tasks.
>

Switzerland through the

property.
The regarded as German property.
B. The expression "Germans in
Compensation Office will consult
"the Joint Commission before mak- Germany" means all natural per¬
sons
resident in Germany and all
dng important decisions. The Com¬
pensation Office and the Joint j uridical persons constituted or
Commission shall place at the dis-* having a place of business or
3>osal of each other all informa- otherwise organized in Germany,
"tion and documentary evidence other than those organizations of
likely to facilitate the accomplish-* whatever nature the ownership or
-tion

'

in

man-Swiss

E. The

shall

as

Compensation
Office
investigate the

hitherto

locus and status of items of prop-




control
sons

who

are

was

also:

ex¬

1,000,000 :

(Mj spindles of

price, officially
States

the- cotton

800,000 (M) spindles.

tions

tional

Housing Administrator. The

1946. the merger

Egypt.

Klutznick's
to return to

immediate

plaris

are

Omaha, Neb., to re¬

pany

at a

textile industry's

of 10 South Carolina mills
$50,000,000 (M) was

cost, of

reported.

;

big. liquor com¬
panies absorbed numerous distil¬
leries and also entered the winery
During the

field

on a

war

large scale.

establish his law practice ia that

largest

liquor

city.

United

States

"•/

23,7

On May 16,
into one com¬

The three

It
letin

estimated at $1(1,-

remaining
United
military and naval installa¬
for

000,000

Housing Expediter and Na¬

a; constitutent agency of the
National Housing Agency.
Mr.

.

mated

tional

is

riot of Germany na¬

a selling
wave .resulted in
change in ownership of an esti¬

1946

pressed by Wilson W. Wyatt, Na¬

Federal Public Housing Authority

of which is held by per¬

tionality. ApprQpriate measures
will be taken to liquidate the in¬

resignation'

and

surplus

equipment, in

;;.7:7 "7; 7:-7:7..'-7-

was

explained in a* joint bul¬

that; the

agreement

provision

allowing

of gthe

the i- United

States to use the field for military

aircraft

was

necessary

so

that it

could maintain communications
companies in the
with its forces in the Orient.
acquired 22 distil¬

r

132

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, July 4, 1946

lumber, would be approximately 20%. :,:y ; y\s■ ;y
'

continued from

fir^t page)

Ceilings for steel would

That he and the others

ed nbw. \ Very considerable
can
precisely some obscurity surrounds this mass
such thing is the real danger of so-called liquid assets*. A
of the Current situation.
;
good deal of it is not "pur¬
chasing power" as such, but
Inflation a Fact, Not a Danger
obligations of the/ Treasury.
" Let it once more also be un¬ Much of it is payable by the
hesitatingly asserted that the Treasury upon demand of the
notion that under any price holders, but the Federal Gov¬
"control system yet devised, or ernment can always manage
likely ever to be devised by its own affairs in such a way
man,- production will present¬ that the funds demanded by
ly overtake demand and in any holder of such obligations
doing so create a situation in will be acquired from another

and

will

have to be raised

do

;;

The

which

advocates

of

who

control
are

is

sums

Evidence of its pres¬
is found not only, indeed

ence

not

is

soundness

chiefly, in black system
prices, which more

even

market

and

make

more

stocks of
'

in the

accu¬

mulated -"money supply" re¬
sulting from New Deal ex¬

travagance and the most cost¬
ly war in all history. So long
as: this mass of "purchasing

from 25 to 30%.

4

Floor

cov-^

erings would go up about
17%; plumbing supplies,
about 16%; farm machin¬
ery, about 13%.
The prices of
clothing—^
already too high—would be
increased by an estimated
average of 15%—more than

The

omy.

The necessity for price

that

tend to promote

-

done

in

the

have / no asked or can
actually be ob¬
small influence
prices,^
upon the de¬ tained?
Unfortunately
both
What the President and the gree of eagerness with which
in the veto
message and over
other advocates of price con¬ individuals seek goods. Much
trol

higher

past,

the radio to the

that is

general pub¬
being said today about
trying to do is to pre¬
vent existing inflation from "buyers' strikes" is doubtless lic these
very dubious conclu¬
quite fanciful,/.but no one sions are stated as if there
having .4 its
natural
conse
are

quences

of

in the market places need doubt that the American could

the,world.

It

is

consumer

losing

a

has his

idea about what

fight — inevitably and irrevo
cably a losing fight—nomatter worth."
what the surface appearances

It

is

or

her

"things

unfortunate

be

more

question

about them than there

can

are

be

about the binomial theorem.

for/ the

Such in very brief are cer¬

he.; Any hope that the public—it is
tain
basic facts about this
certainly unfor¬
American people may be led
tunate for his
standing among price control question and the
to cherish that such a
fight
price
control
situation
in
may be won must inevitably, thoughtful students—that the
which we find ourselves to¬
President
sooner or
has;
been
led to
later, turn to dust
and ashes in their mouths,
Jy suppose that he can guess day. Let us bear them care¬
may

But' it does
course,

that

not

follow, of

either

with

or

without

control, prices f are
likely in the early future to

what

price

changes

would

come.

such

our

limitations

upon

-

move

in any such

in,

control

I,

or

Greece

or

China

The

during World War II. Even
the experience in this
country
during the first year or two
after the end of World War I
which is

—

nauseam

to

death—may

being cited ad
frighten us all to
or

may

not

in

circumstances be repeat¬



,11

■> if i

21 ii'i„ .VwVi

Taft

Take the

from

by
fol¬
his

It

will

help to keep

thinking straight.

Meanwhile,

someone

should

in

the way to

combat inflation

is to combat

it, not its effects.

field

and

only the Treasury —
housing would be little
meaning the fiscal policy of
short of
devastating. The the
Federal
Government, of
prices of nearly all building
course—can do
materials would be affect¬
anything very
of

-

ed. The
average
such'

materials,

increase of

excluding

effective

to

eliminate

reduce its effects.

it

or

of

is

necessary

.

receptive to

vival of

of

form

some

of

re¬

OPA, but the possibility

early action in the Senate ap¬
remote.

pears

The

first

business

day (Monday of this week) with¬
controls, retail stores here in

out

New York

generally, continued to
operate under OPA ceiling prices
in response to a
plea of manufac¬

turers and merchants of the nation
to hold the line. It was
reported

competition

and

proved

force
from

to

into

came

be

a

everywhere.

play

stabilizing
Expressions

the country's various busi¬
leaders conveyed their inten¬

tion of
of

ended

rise

output

ended June 20,

re¬

since

mid-

the

week

in

increasing by 1%
27,600,-

33% under
output for the similar week of
1945. American cheese
production
for the

week ended June

20

was

also 1 % above that of the
previous
week and 17% below the total
for
the
corresponding week one
year

ago.

"7 y

Shoe

manufacturing

high level with

at

was

stocks

a

of leather

decreasing. Consumption of

wool

rose

again the past week with out¬
put of woolen goods
continuing at
a high rate.
4 Consumer spending was
heavy
last week with expansion in retail
volume above that of the
previous
week and the
corresponding week
a

Favorable weather for

year ago.

shopping prevailed in
tors
was

of

the

noted

country.

in

retail

most,

sec¬

No

change

food

volume

for the week, but it was
appreci¬
ably above the like week of 1945.
:
Wholesale 1 volume
advanced
,

that

ness

week

from the previous week to
000 pounds. This was

to

.

seasonal

a

February,

Notwithstanding

t

the

was

Creamery butter production
flects

the

At the present moment the House
is

safe-guarding the interest
by maintaining

the

consumer

quality of output and avoiding un¬
warranted increases in prices.
?f The
principal rise on Monday of
this week

was

reported in cattle
the Chicago livestock
market, two loads of choice offer¬

prices.

On

ings
brought1' $22
a
hundred
pounds, or an increase of $3. Corn
futures advanced the 5 cent limit
allowed for a single session of the
Chicago Board of Trade, while No.
2 hard wheat hit the
highest level
since 1925

as

dealers bid $2.05 for

immediate

delivery. Last
the ceiling was $1.97.
On

the

other

hand

week,
,

crude

oil

prices remained at the level which
was
quoted last week. Industry

slightly the past week and con¬
tinued to exceed the levels of the
corresponding 1945 week/Demand
held strong for most commodities
and inventories

in most lines re¬
a slow but
steady rise.
Steel Industry—Steel
producers
last week faced one of the
most

flected

serious shortages of iron and steel
scrap since wartime peak produc¬
tion

in

1942-32,

scrap

drives

higher

scrap

when

and

national

agitation

prices

lor

the gen¬
eral rule, according to "The Iron
Age," national metalworking
were

Until such time

paper.

facturing operations

as

manu¬

steel
consuming groups reach a much
higher rate than at present, .there
among

is little chance of this situation be¬

ing alleviated.

\

.

Some dealers and
scrap produc¬
ers
are
reported to have been

holding back supplies in the hope

leaders

of higher prices, but the fact that
OPA will be extended has elimin¬

OPA is

ated, for the time being at least,
extending any chance for
higher ceilings on
eliminated, although it is iron and
steel scrap, the magazine

doubt that any steps will
be taken to raise them until cur¬
rent uncertainty over

unanimously held that a
mark-up of 25 cents a barrel is
necessary. ^
/

An announcement from

Moses

be

to

maintain

its

present

yyVy-;4 ~•/)«

:7 y,-yy

The

Pendleton, President of the Amer¬
ica Woolen Company, stated that
the general policy of the
company
will

states.

/

.

tonnage of scrap which is

believed

to

have

been

held back

recently during the national price
controversy would represent only
a small part of total
scrap activity.
When

this

tonnage starts to flow

into consuming channels, it should
prices, adding: "The
removal of OPA price restrictions have little or no effect upon the
will not result in price increases general supply picture. The pres¬
ent shortage of scrap has
for our fall, 1946 season
been
covering
deliveries through October. Be¬ aggravated by the increased use of
yond that our pricing policy will scrap during the past two months
when pig iron output was abnor¬
necessarily be controlled by con¬
mally low. While some steel offi¬
ditions existing at that time."

schedule

.

of

For the past week total indus¬

ahead

production

slightly

reached

tities.

again

as

raw

moved

materials

factories with

suggest to the President that regularity and

impact of the The Treasury is responsible
Wherry amend¬ for the inflation now existing,

the crucial

control

.

trial

first

and

ments

price

those suggested

publicized "inflations" lowing sentences
Germany following World veto message:

War

any

as

precipitous
Senator Taft.
characterized
the

way " as
much

fully in mind in the days to

follow upon the
adoption of

con¬

slowly but steadily advanced with
much merchandise and foodstuffs
finding its way into black mar¬
kets to the detriment of the coun¬
try as a whole. /
/

almost

no

own

ending

for

8% above that of the
previous, but 58% under
that of the like week in 1941.

the latter point of
view, the cost
of living in recent months has

,

even

the

inflation.1

away

,

good authorities who believe Prices themselves will in the does the President feel' so cer¬
that enlarged
production may future, as they have always tain that they will actually be

since

Canada

week

econ¬

against an upward spiral
prices that will lead to a run¬

of

for

-

our

insure

been

goods dent is obviously making the
/created
by the production recklessly. Surveys have been rather remarkable assump¬
that - the y new y
process itself, impinges in any made which undertake to as¬ tion
ceiling
"intentions" of prices and the actual market
very substantial part upon certain the
the markets, and so
holders
of
these
funds
and
prices would be one and the
long as
this
mass
of
"purchasing other "liquid assets." & Such same. He seems to forget that
power" is anywhere near as inquiries, of course, must be American business is
compet¬
;
large as it is now in relation taken with several grains of itive, and that the American
to the total income of the
salt, but for what they are consumer has some ideas of
people or the volume of worth they hardly suggest values. He, moreover,
appears
goods available to the people, more than a somewhat mod¬ to have a very low opinion of
prices will tend to move up- erate outpouring of funds for the intelligence, not
only of
ward, and volume production goods in the year ahead— the consumer, but of the busi¬
will not place
any apprecia¬ certainly not any such orgy ness man. If these new prices
ble impediment in the
as
some
of the Washington are
way of
really quite out of reason¬
that trend. Indeed, there are wiseacres would have us fear. able
relationship to cost, why

June 22

catastrophe to

price controls, while others main¬

President, /whose ad¬
have

and

a

for

the third
consecutive week, Truck and car
production in the United States

controls will prove a boon rather
than

tain

-

-

on

totaf optput rising

war, some holding to the opinion
that our return to full production
has been hampered
by restrictive

ments.

economic

whole.

market

important part
Saturday of
Congress to take

very

offered by

position to demonstrate to the
people that the removal of such

sumers

Wherry amendments and

visers

the

on

a

by the President

free econ-«>-

a

trol has been the bone of conten¬
tion among producers and con¬

the balance to other amend-

to

return to

a

tributable to the Taft and
m

our

for the first time in many
years business and industry are in

half of which would be at¬

:

With

orny

-

in addition to that it

power,"

the

4"

already granted. '
appliances Such
as
washing machines and
refrigerators would increase
Household

repeatedly
saying that it would take ah
Such facts as are available, eternity to calculate new ceil¬
furthermore, seem to indicate ing prices under the measure
that this "purchasing power" just
vetoed, evidently has
which so frightens the Presi¬ been told to the
penny what
dent is concentrated rather many of these
ceiling prices
largely in hands which are would be! But \ apart from
not altogether
likely to throw such consideration, the Presi¬

laughingof

in

as a

return

a

The Office of Price
Administration shared
of the news last week with
the veto
the much weakened substitute

measure

A Buying Orgy?

price "indexes," but

enormous mass

to

;

price of low-

automobiles would the place of the
price control act which passed out of
existence la£t
$225 to $250, Sunday at midnight as a result of the
President's unwillingness to
top of the substantial accept the new bill,
:./y/y. v.v\;oOf

on

from his income. In such

essential

average

increases

no.

a-fact.

aver¬

be increased

saving the required

longer needed is wholly a case the "spending" of one
.fallacious^ No such easy and will be offset by the "saving"
simple means of avoiding of another. .Such an accom¬
payment ■ for > the economic plishment by the Treasury
sins of the past exists. Infla¬ would require very consider¬
tion is not a "danger," as the able modification of
existing
President keeps insisting, but
policy, but such modification

an

ton.

priced

,

will concede that controls

a

■

,

.

of $4 to $8

age

The

greater
in increasing quan¬

rate

of

order

volume

cials believe that the current scrap

shortage will not only prevent the
from going any higher, but

rate

will likely cause it to decline, this

opinion is not uniform throughout
the industry.
Many times since

for goods in most lines continued

the first of the year

at an extremely high level.
Steel
production
rose

dictions

points

to

37.2%

from

three

84.2%

of

industry

pre¬

the speed of recovery
from setbacks in output have been
too

on

conservative.

Some steel makers are
the preceding week.
pinning
Electric power output advanced their hopes on a greater
supply of
2.5%, while bituminous coal pro¬ pig iron over the next few months

capacity

in

duction declined 2.4%.

Daily

aver¬

crude oil production was also
fractionally lower reflecting a de¬
age

cline of 0.2%.
In the

automobile

as

renovated

blast

furnaces

government to bring in

industry

op¬

erations in many plants showed an
accelerated pace last week with

are

brought &back
into
production.
The contemplated action of the
ernment-owned
cost

blast

and

some gov¬

^ome

high

furnaces may help the

(Continued

on

page

139)

..

4.

'"N

,v.

'"V.-frt'i

Volume

'V

)er 4504^
Number

164'

THE COMMERCIAL & FINANCIAL CHRONICLE
CHR

,' —

'

June 30, 1946, against $67,764,771
on March 30,
Cash on hand and

686,638, as compared with $15,811,095 on March 31, 1946, and
$17,028,142 a year ago. U. S. Gov¬

l&Jtems

MboutlBa

due

from

'

w

133

banks

was

$10,043,117,

corresponding period of 1945. Net
current operating earnings were /;
$1.30 per share compared with
$1.14. In the first half pf 1946 net
profits ort securities were 34 cents
per share, after provision for taxes
applicable to such profits, com¬
pared with 57 cents per share in

$49,604,- against $6,686,138. U. S.'Govern¬
compared with $50,140,917 ment securities were $38,021,009,
on March 31,1946, and $56,254,735
against $42,603,722; customers' lia¬
a year ago.
Loans and discounts bility on acceptances* $9,850,377,
Sur¬
were/ $22,406,132,/ as % compared compared with $8,137,774.
*■'•'&,■
J
'V-v'- ,/;„/•/;,;
with $27,049,754 on March 31,1946, plus and undivided profits were the first half of 1945 when
pro¬
and $19,052,413 a year ago.
$3,185,751, against $3,181,729 in vision for taxes was applied en-/;
The statement of condition of $1,327,454,154 and total assets of
the previous quarter; amount due
tirely against current operating
Guaranty Trust Company of New $1,470,212,722 compared respec¬
customers
was
The statement of condition of to
$50,791,892, earnings.'
York as of June 30, 1946, shows tively
with: $1,309,087,880
and Manufacturers Trust Company as against $48,566,195.
Acceptances
total resources of $3,489,673,3*20 as $1,424,973,625 on March 31, 1946.
of June 30, 1946, shows deposits
outstanding
w e r e
$10,558,696,
Brown
Brothers
Harriman
&
ernment Securities were

360,

as

Trust Companies
.

.

,

$3,609,511,466 at Cash on hand and due from banks of $2,343,557,026 which include
to
$343,959,027 com¬ U. S. Government War Loan de¬
last published amounted
statement, March 31, 1946.
De¬ pared with $210,528,634; holdings posits of $241,461,153.
Resources
of
U.
S.
Government
securities to
posits are $3,100,757,647, as com¬
are $2,489,524,7.59.
These figures
$594,226,779
against
$605,489,186;
pared ; with r $3,093,764,158
on
compare with deposits of $2,259,acceptances
and
call
March 31; U. S. Government obli¬ bankers'
623,221 and resources of $2,401,gations
total
$1,946,239,729,
as loans to $135,827,012 against $189,433,547 shown on March 31, 1946.
compared with $2,060,896,996; and 133,178; and loans and discounts to On June 30, 1945, the respective
loans
and
bills purchased total $253,058,835 against $273,234,091:
figures were $2,145,420,789 and
$737,594,522 as
compared ..with Net operating earnings for the $2,261,550,127.
U. S. Government
$897,933,684.
Total capital funds first six months amounted to $3,- War Loan deposits on March 31,
of $317,476,733, comprising capital 889,977 as compared to $3,587,254
1946, were $427,751,906 and on
of $90,000,000, surplus funds of for the same period - a year ago. June
30; 1945, they were $398,$170,000,000 and undivided profits Net profits and recoveries on se/ 135,001.
Cash and due from
curities
amounted
to
$1,466,417
of $57,476,733,
compare
with a
banks is listed on June 30, 1946,
total of $314,865,941 on March 31. against $1,754,083 :for the first six at
$560,937,087, as against $366,months of 1945.— Miscellaneous
135,931 shown on March 31, 1946,
Statement
figures
published credits for the first six months and, $381,982,154 shown a year
July 3 by the National City Bank amounted to $555,397 compared to ago, U. S. Government securities
of New York show total resurces
$55,893 for the same period a year stand
at
$1,360,049,030;
three
as'of June 30, 1946, of $5,184,476,- ago.
Capital and surplus were months ago they were $1,417,231,-:
at > $25,000,000
and 943 and one year ago they were
441, or a decrease of $63,739,247 unchanged
compared
the

with

time

iri

with .March

comparison

1946.

31,

Total deposits are $4,872,-

600,625 against $4,948,852,510 last
•March 31.

In these totals U.

S.

War Loan deposits are $562,987,699^ and
$1,001,642,473, respec¬

tively.

Holdings of U. S. Govern¬
ment obligations are reported at
$2,561,321,256 compared with $2,{577,056,576.
Cash and due from
banks and bankers is $1,176,800,124,against $995,920,778 and loans

$65,000,000, respectively, and un/
divided profits were $12,271,934
against $11,468,497 of March 3L
The indicated net earnings on the
bank's 2,500,000 shares (par $10)
amounted to $0.77 per share- for
the second quarter of 1946 as com¬
pared with $0.72 *per share, a year

'

ago.

$1,255,330,444^. compared respec¬

!are unchanged at $77,500,000 and
$142,500,000, respectively, and un¬
divided
profits are $36,712,567
against $33,992,115.
; • //.

tively with $1,158,221,705 and $1,-

Farmers Trust

;Companir, the/stock of r which is
beneficially owned by the share¬
holders of the bank, reports total
deposits as of June 30, 1946, of

$163,251,893 compared with $159,396,527 last March 31.
Total re¬
are
$196,337,976 against
$192,127,921.
Cash and due from
banks amounts to $31,306,200 com¬
pared with $25,193,100 and hold¬
ings. of
S. Government obli^
gations total $154,778,911 in com¬
parison' yyith $1$5,'785,748 /a^fof
sources

.

March 31, 1946.

Capital and

sur¬

are unchanged: at $10,000,000
each and undivided profits after

plus

providing for the full six months'
dividend in the second quarter

$7,884,264 compared with $7,893,926 at the end of March, 1946.
-/
Total deposits for the bank and
trust company together as of June
30 amount to $5,035,852,518 and
total resources to $5,380,814,417 as
compared
with : >; corresponding
are

.

of March,

the end

1946,

of

$5,108,249,037 and $5,440,343,609, respectively,- The total cap¬
ital funds of the
company

bank and trust

together

are

/ as of June 30, 1946,

$284,596,831

or

$45.90

per

pare

.

227,214,197 as of March 31, 1946.
Casn
on: h^pff^ando 4ue.f from
amounted, to

.

bankers'

$3.17,691,630

in/ their

statement of condition of June 30,

curities totaled $25,460,659, against

loans and discounts.
compared with ! $4,448,686.
Surplus and undivided
profits were $2,584,891, against
$2,583,323.
Deposits were $34,$31,961,612;

$4,871,958,

/

103,198, against $39,802,517.

iyj/:15 ..-ivjjY
Fulton Trust Company of New
York reports total
deposits of
"

com¬

with $527,435,424 on March

1946, reported total resources of
$212,633,722 compared with $208,186,002 at March 31, 1946, and
$189,584,235 as of June 30, 1945.
Deposits for the first six months
of this year amounted to $185,992,884 compared with $184,610,547 on /
March 31, 1946, and $167,857,610
a year ago.
Capital and surplus of
$13,725,455 compared" with • $13,—
705,542 three months ago and $13,645,792 on June 30 of last year.
Loans and discounts totaled $51,-

.■■■'■?

;

acceptances

which

bankers,

private

Co.,

Company re¬
ported June 30 resources of $38,596,747, compared with $44,215,435 on March 30; cash and due
from banks, $7,483,057, against
$7,034,058. U", S. Government se¬

31, 1946, and $484,681,046 on June
30 last year.
Capital funds as of
June 30, 1946, are shown as: cap¬
ital, $41,250,000; surplus, $41,250,000;-and. undivided profits, $33,-:
604.839.
Net operating earnings
for; the six months / ending /June
30- 1946, after amortization, taxes,!
eit&, Were $5,442,475, or $2.64 a
share, based on 2,062,500 shares
outstanding, which compares with
$4,600,560, or $2.79 a share, based
on 1,650,000 shares outstanding as;
of June 30, 1945/ Of this amount,;
$2,474,996 was paid in dividends;

pany

banks

and

are; now $490,061,485,

.

!xpahithl^ and surplus

,

chased

the Manhattan Corn

of

Bank

Jahd /Biseoiiiits are $1,074,374,109
■Compared■ Wdth$1,290,314,552 on

totals at

:

Schroder .Trust

v

bills pur¬

Loans,

$1,319,364,692.

.

of New York, reported as of
June 30, 1946; total, dei>Qsits/pf
$1,182,047,643. and total assets pf

March; ^

against $9,469,373. ;

the

of

against
$52,756,899 ' on
31, 1946, and $42,936,737
30, 1945. Other impor¬
tant asset items compare as fol- ./

945,475

.

March
on

June

$39,639,192 and total ' assets of
$45,296,977 in' its statement of lows with
figures for three months
June 29, 1946, as compared with
and a year ago: cash, $46,106,706
deposits of $37,607,358 and total
against/ $39,274,169 and $36,302/assets of $43,192,048 on March 30,
714; United States Government se¬
1946. / As of June 30, 1945, total
curities, $50,988,714 against $53,deposits
were
$43,820,930 /and
352,370 and $57,51.7,175; state, mu¬
total
assets
$49,336,951. - Cash
nicipal and other public securities,
U. ,S. Government securities and
$47,342,871 against $48,879,044 and
demand loans secured
by collat¬

eral

to $42,517,559, as
with ; $40,134,648
on
March 30 and $45,845*805 ^a ryear
ago.,
Capital and surplus showed
no change in total/at
t$4,OjOO,OQO*
but undivided profits increased to
$1,293,530 after/dividdhid^^^f ;$30,000
payable? July
ly
1946,
as
against $1,260,687 on,Marqb. 30 and
$1,183,248 on June 30, 1945,^ T >:
amounted

compared

.

V Thomas J. Shanahari, President
of the Federation Bank' and Trus,

fL

"/

$42,016,909.

/,/;///Z^///;//'/
//1 -/'f
/The Commercial NationaLBank
and Trust Company of New York
reported as of June 30, 1946 total
deposits of $252,114,309 and total
assets of
$277,327,769 compared

respectively with $231,352,434 and
$261,837,150 on March. 31/1946.
The Bank held, cash on hand and
due

of :*$71,904,476

banks

from

compared . with
$43,357,613^.an
March 31, 1946; investments/in
United States Government secuf-

$190,319,729; ..holdings pf on,;
Capital stock, and. $2,967,47,9; •Company, of New York,A reported ities'Of $160,956,317 compared with
U.
S.
Government
obligations,
.Vyas,credited,
to undivided profits.; as of June 28, 1946, deposits of $177,§35,891/on March 31,/1946.
/ •*-:J
/ '
!
^
'it, ^
ft
v't
$514,585,527 against, $580,467*625.
$38,550,997 and total resources of' Loans and discounts of $40,259,875
Loans and discounts amounted to
The Corn Exchange Bank Trust; $43,611,497,
against
$37,618,806 compared
with
$35,543*225,. on
$359,320,038 compared with $389,and
$41,744,253, respectively, as of March 31, 1946. The bank's capital
Company of New York announced
716,422. Capital remained at $2Q,Dec.
31,
1945,
Cash
on
hand
and
jn its statement of condition as of
account was unchanged at "$7r
000,000.
1 Surplus - remained,
at
June 30, 1946, that deposits and due from banks amounted to $9,- 000,000 and its surplus: and ' un¬
$30,000,000.
Undivided / profits
other
liabilities
amounted. to 184,420, against $9,922,247./ Hold¬ divided
profit account increased
after reserve of $600,000 for quar¬
$821,876,579 as compared with ings pf U/ S, Government securi¬ to $12,593,546 from $12,388,206; at
terly dividend increased to $11,$842,036,888 / on Dec, 31,
1945. ties totaled $8,403*179, against March 31, 1946 after payment of
929,325, from. $11,293,186: at the Total resources were announced
$16,874,401.
Loans and discounts the
regular dividend. Net earnings
end of March,,
af $862,966,008 in the- most recent were $15,594,794y against $9,400;/ per shafe for the quarter were $.99 ;
785.
report while they stood at $882,Capital remained unchanged
andv fon/thel; six months,; of/this ;
/ The /Central Hanover; Bank & 047.904 on Dec. 31,1945. Holdings at $1,500,000.
Surplus' had been
year $1.96.
://; 'V/;/.;;- V:7'T/'/.;
Trust Co. of New York announced
of U. S. Government securities increased from $1,400,000 to $1,in its statement of condition as of
500,000, and undivided profits had
are now $576,541,409 as compared
J. P. Morgan & Co., Inc./New
June 30, 1946, that total deposits With
$615,281,573 six months ago;: been increased from $468,237 to York City; reported ?ks »of; June.
were
$1,767,706,438, i against $!,/, cash in
vaults
and
due
from $513,141.
/,
30, 1946, total deposits:,of $623,- /
687,36.6,373 on March 31, 1946; the banks at the end of June was
284,253 and total assets of $705,total resources for the same two
The statement of the Chase Na¬
shown to be $194,137,662 against
296,253
compared
respectively
periods respectively .were $1,902,- $178,687,417 at the end of De¬ tional Bank of New York for June
with $663,101,843 and $732,435,257
366.206 and $1,818,199,401/
Cash cember.
Loans
and
discounts 30, 1946 made public July 3 shows
on March 31/1946.
Cash pnJiand
on
hand and due from banks on
were announced at $66,531,798 as
deposits of the bank at the end ol
and due from banks is shown at
June 30 was $452,470,634 against
compared with the figure for last June of $5,039,709,000 compared
$127,650,223 in the present state¬
^os.648,608 on March 31, 1946; December of
$55,445,681. Capital with $5,140,087,000 on March 30, ment against $124,084,208 "three
holdings of U, S. Government oblL has remained unchanged at $15,- 1946 and $4,952,627,000 on June
months ago. / Holdings of U. /S.
gations were $931,610,352 against 000,000 while surplus/and
un¬ 30, 1945. Included in the total de¬ Government
securities'*;are-now >;
$888,346,713 and loans and .bills divided profits rose from $25,011,- posit figures are U. S. Government
purchased amounted to $468,166,- 016 on Dec. 31, 1945, to $26,089,428 War Loan deposits with the Chase $393,781,164 compared,with $414,,306,976 in March; loans ar>d. bills
927 on June 30, against $553,234,National Bank on the j respective
at the present time.
/
purchased are shown' at $143,135y- %
156 on March 31:
Capital, $21,*datds, as follows: June 30, 1946— 297
against
$151,799,453 Uhree
000,000 and surplus $80,000,000 on
The Public National Bank & $597,476,000; March 30, 1946—$1,- months ago. Capital and -surplus
June 31
were
unchanged/from
Trust Co. of New York announced 080,691,000; June 30,1945—$1,120,- remained unchanged from :March
March 31 report, but undivided
;
;
in its June 30 statement of con¬ 368,000.
31 at $20,000,000 each,JwBle. un¬
profits advanced n to $18,310,986
Total resources on June 30,1946
dition tbat total deposits as of
divided
June 30 from $17,785,462 March
March1 31,
1946,
amounted
to amounted to $5,403,847,000 com¬ 149,596 in the current report from;;/
31, 1946.;
>
/ '
*
with
$5,498,511,000
on
$540,965,686 and total assets to pared
$6,784,7671 three4 months: ago.., /
March 30, 1946 and $5,288,247,000
$576,936,653,
compared
respec¬
Chester R. Dewey, President of
a
year ago; cash in the bank's
tively with $524,091,369 and $558,against

•

'

'J

-y

'

-

^

?

,

.

,

•

share

on the 6,200,000 shares out¬
standing compared with $276,515,874 or $44.60 per share as of Dec.

/

31,

1945.

earnings

The

of

the

National City Bank of New York
and the

City Bank Farmers Trust
Company combined for the first
half of 1946 and for the

same

pe¬

riod in 1945 are:
Amount/

1st Half 1946—

Per Share

Net current operating

earnings

1

.

$9,589,$22

$1.55

3,768,651

.60

.

,

National

Grace

directors.

Net profits from sales

of securities^—___

$13,358,573
1st Half 1945—/•'/

:

Stores

Per Share

Amount

Mr.

ihe

of

man

$2.15

earnings

$8,376,394

$1.35

4,135,980

.67

of

New

Kingsley is Chair¬

board

Company,

Griswold

is

Griswold &

Net current operating

Bank

York,' announced on June- 27 the
election of F. G. Kingsley " and
John C. Griswold to the board of
of

Mercantile

Inc.,

President

and
of

Mr.

J.

C.

Company, Inc;

Net profits from sales
'

of securities
'

__//

the

:

<

-

$12,512,374

These earnings
is

The

in both

$2.02

cases,

pointed out, do not include

coveries

(Which

were

to reserves.

Grace

June

it

re¬

transferred

/.;/'/'•/,,//••

statement

30,

The

Chemical

Bank

&

Trust




National

condition

of

Bank

of

as

1946, shows deposits of
as
compared
with
on March 31, 1946, and
a year ago.
Surplus

$88,265,488,
$90,000,002
$92,942,431

and undivided profits amounted to

$3,713,610,
Company of New York reported
as
of June 30, 1946, deposits of

of

compared with $3,838,415 on March 31, 1946, and
$3,420,930 a year ago.
Cash in
vault and with banks totaled $23,-

421,705 on March 31.
Cash on
hand and due from banks in the
recent statement

The Continental Bank &.Trust
deposit with the Fed¬
Bank
and
other Company of New* York reported as
of June 30, 1946, total deposits of
banks amounted to $1,249,714,000

vault and
eral

on

Reserve

was $109,538,651
$194,260,150 and total; assets .of
against $94,657,209 on March 31, compared with $875,763,000 and
$209,209,199,
compared ^respect¬
on
the '' respective
1946; holdings of U. S. Govern¬ $887,309,000
ively with $183,270,80,7 and $197,ment
securities / amounted
on dates; investments in United States
684,813
on
March
31, 1946/ Cash
June
30,
1946,
to
$296,294,365 Government securities, $2,611,093,on
hand / and
due f from banks
compared with $300,499,781 March 000 compared with $2,960,277,000

31; loans and discounts are now
$155,058,827 against $145,508,342
on
March 31.
The capital and
surplus on June 30, 1946, total

$22,000,000, the same as on March
31, 1946.
/ Undivided profits June 30, 1946,
were $5,664,730 as compared with
$4,892,178 on March 31, 1946.
/ ;

as

J.
Henry /■ Schroder
Banking
Corporation of New York reports
total resources of $71,184,077 on

and

$2,900,026,000; loans and dis¬
$1,166,386,000
compared
with $1,315,612,000 and $1,159,769,000/ On June 30, 1946 the capita'
of the bank was $111,000,000 and
counts

the

surplus

were

Government

profits on June 30
compared with

$56,792,000 on/ March1; 30.
Net
earnings for the first, six months
of 1946 were $1.64 per share com¬

pared with $1.71 per share in the

$53,507,515,

holdings / of
obligations

257,086,' against

000

against

:

U.,. S.

to

$72,-/

$74,924.569/loans

to /: $81,940,461,
$69,387,382. /Capital arid
were unchanged ut $5,000,-

discounts

and

both against
surplus
March 30.

$59,392,000

to

$33,895,483;

$139,000,000,

figures the same as on
The undivided

amounted:

each.

Undivided profits were

$1,681,673, against $1,471,204.. 7
The

statement

of. condition

Brooklyn ;: Trust

(Continued on

Company,
page .144)

•

"
of

of
: :

!

134

THE COMMERCIAL & FINANCIAL CHRONICLE

Combined U. S., Britain & Canadian Food Board
Ends-lnt'i Council of 19 Nations Continues Work
The

created

war

Combined

Food

Board, whose functions were
carried on by the United States, Great Britain and Canada, has been
expanded into an International Emergency Council of 19 Nations,
which was established at Washington on June 20, at a
meeting pre¬
sided over by Secretary of Agriculture Clinton P, Anderson. ./ Until
the

Council

new

formed

was

it

had

been planned

to continue the

on

June 29.

It follows:

"We announced

plans

to

Food

Board

because

had

until

the

of

occurred

the

in

recent
control

31,

1946,
that

world

food

which

functions

hereby
of

as

of

declared to be
July 1, 1946. The

the

Combined

Food

and

distribu¬

ferred to the International Emer¬

with

view

gency

widespread suffer¬

1946."

ing and starvation.

is

Board, together with all its docu¬
ments and records, will be trans¬

months,
the

foods

many

the

terminated

to

to preventing

will - continue

Dec.

situation

of

es¬

forthwith, and held its
inaugural session on June 20. This
organization

deterioration
in

was

work of the Combined Food Board

the need
tion

/.•/'•/

Emergency Food Council

May 9, 1946,
the Combined

on

continue

"Accordingly, the International
tablished

a

'j>

-

Food

Council

July

on

1,

;

,

Mr.

- *

Anderson, at the May 20
.//"Subsequent to this announce¬
meeting, described the new Coun¬
ment, a special meeting on Urgent
cil, which will combat famine for
Food Problems was convened in
the next year-and-a-half;' as a
Washington by the Food and Agri¬
great "step forward." At. that
cultural
,

.

Organization of the United
Nations on May 20. As a result of
discussions
tain

at

this

meeting,

cer¬
with' re¬

recommendations

spect to the formation of

an.

ternational

Food

Council
mitted

Emergency

were

the

to

cerned.
"It

approved

and sub¬

part of these

a

recom¬

mendations that the governments
of the United Kingdom, United

States and Canada should arrange
without • delay for the Combined
Food Board to call a meeting. This

meeting

of

"Members

the

new

agency

held

in the work of the Combined Food

Board's

commodity ; committees.
nations which- have a
major interest in importing or ex¬

They

are

;

;V, "The new Council will elect a
Secretary General as its chief. of-r

fiCer//:;///%^
"Today the Council selected a
'Central ^ -Committee' ' of - - nine
.

which

will

consider

issues raised

June

,20, in commodity committees, coordi¬
1946, and was attended officially nate their work, reconcile differ¬
by representatives of 19 countries ences and carry out council func¬
who, on behalf of their govern¬ tions between sessions of the full
was

ments,
terms

formally
of

accepted

reference

national
cil.

on

of

the

the

Inter¬

agency.

Britain, the United States

and Canada

automatically became

Emergency Food Coun¬ members of the- Central? Commitw
/.////; //■/ ////

.

'V.

"Only

"It

13

was

one

the

Urges Eatificalion of

:

—

by

meeting - of the Twentieth
Century; Fund's
Committee
to;
study the foreign economic rela¬ other peoples."

t h

one re¬

formerly

Economic
Warfare at the American
Embassy
in London and now on the

faculty

of

the

Institute

for

Advanced

Study, Princeton, N. J.

Members

of the Committee who

statement

Director

search,

/

Kermit

were:

of

signed the

Education

Congress

Eby,

and

of

Re¬

Industrial

credit

There

was one

dent Truman,

vices,

which

homeown

said the press ad¬
many considered a

the

"We

all

know

that

three/branches
ment

of the

of

branch

of

dicial

branch.

of

one

the

United

The

Supreme
Court is at the top of the judicial
branch: / AIT of us have the ut¬

the

for

Courts

Henry P.

and

that
enhanced

be

when

one

statement

was

the

at

offices

of

Century Fund.

the

Twentieth

The full text fol¬

lows:
"This

and

Committee

make

a

is

called

research

to¬

study

recommendations

on

conviction

that

our

we

unanimous

cannot

even

begin our work without .first urg¬
ing immediate ratification of the
loan to Great Britain.

"Any recommendation

Vinson Takes Oath

may

later evolve would be made almost
futile and pointless unless this loan
goes

ly

through. Speaking impartial¬
of business, labor, and

as men

representatives

public

we

is vital to
cans

the

of
say

the
general
that this loan

welfare of Ameri¬

in all walks of life.

"The

British

adopted if
vival

can

of

we

world

loan

hope to
trade

must
see

and

be

> The oath of office as 'Chief Jus¬
tice of the Uni.ed States was ad¬

ministered to Fred M. Vinson on
June 24 by Chief Justice Law¬
D.

rence

States

Groner "of

Court

of

the

Claims

United
for

the

Justice

elaborate White House

an

cere¬

in which President Truman
said/Justice Vinson would en¬

hance

national

respect

for

the

feud-ridden high
tribunal, it was
by * the Associated Press,

noted

which added:
J The

•

•

swearing-in

ceremony on
the south portico had all the
pomp
and

trappings of

/For
war

a

Presidental in¬

-

-

the

second

ended

the

White House

defend the

another/to pro¬
justice to rich and

equal




loan

associa¬

level

tions

and

search into peacetime possibilities
of the newly
developed

co-

plans to maintain/ develops
activities
and

to

at

their/present
vigorous

press

re¬

power

had since

source.

1941, the
will come

meeting

business

the

has

reached

time

since

the

iron

were

gates to the
thrown open to
per¬

wit¬

the historic
ceremony. ' '
/
Justice Vinson succeeds the late
Harlan F. Stone as chief of the
nation's highest court.
The Court

feud

between

a public
Justices Robert H.

Jackson and Hugo L. Black.
Mr. Truman, in an
apparent ref¬
erence to the court
split, said in a

speech praising Vinson:
"All of

us

have the u'most

had

appointed

a

Chief Jus¬

tice

/-capable of /doing /whatever
job he is assigned to do."
,

predicts.;

The naming of.Mr; Vinson,' re¬
tiring Secretary of the Treasury,
these

columns

June

The

actively

on

President

/At

he

as

,

said the lower amount should be
adequate in view of the probabil¬
ity that favorable crop conditions

/

three

six-page supplementary list

home

June 24

tate

loan

the real

program,

Backing
would

points but that the lists
pared

a

as

because

were

pre*

guide to business

men

such

no

compilation has

been made available to the
public
by the Office of Price Administra¬
ed from the Federal

the fact that Mr. Vinson was the
13th Chief Justice was
lucky for

obtain¬

was

Register and

sources, ; 'and
against OPA orders and

checked

regulations.

savings and thrift in post¬

reserve
.

*

;

■

•

Group Boosts
Appropriation for Army

Department appro¬
priation of $7,091,034,700 approved

equipment
-

foods,

metals,

and / textiles./

paper

Among

specific items removed from price
control during the past 30
days
broccoli

and

suspension

and

sent

it

to

the

Senate

floor.

appropriation is the largest
of any peace time year in the na¬
tion's history and about double

plementary/Order 132 exempted
dressed

also

and

frozen

canned

or

frozen

suspension

definite period.

supplement

on

and. prepared

poultry from June 13, to
and

rabbits

control./This amend¬
extends

an

in¬

The original list
are

available

to

members of the Association with¬
out

charge.

Copies

are

available

to non-members for
$1.00.

For

tee

restored to the bill the

trimmed from the

action

tion

House, for relief in
countries, by this
brought the appropria¬

enemy

it

for

this

purpose

to

up

' construction

the

Marianas,

thePhillippines,

Hawaii

and

the full

budget estimate of $195,-

meas¬

the

by

ure

former

$150,-

permanent

Work ait Army/bases in; Alaska,

000,000.
'The

Okinawa

it

granted

\
bill

publication

was

accompanied by

of 1,200 printed pages

an

recommendation. /..

extended from May 20 to August
18, 1946. Amendment 37 to Sup¬

live,

'

on cer¬

tain fresh and frozen fish has been

from price

the organized reserves
$56,000,000 and for Ihe R, O. T. C,,
$16,872,000:

He also

brussels

sprouts, frozen carrots and okra,
electric curling ifons,. bias
tape,
little cigars, friction
tape/paper
doilies, dress patterns and some
lower priced furs such as
skunk,
raccoon,
North American opos¬
sum, grey fox and wolf.
said that price

corps of

of testimony taken during its con¬
$500,000,000,
the
amount
sideration. Witnesses ranged from
originally V recommended by the
Budget Bureau. The Senate'com¬ Secretary of War Patterson and
mittee accepted the House figure Eisenhower
down /through
the
of' $375,000,000/ for
the Army's lower civilian and
military eche¬
atomic research program, which
lons.
•
1
represented an increase of $175,000,000 over the Budget Bureau's

,

canned

officers^training

for

The

000,000

products

of

Air

;• For; other/Army research pro¬
by the House June 21 was boosted
by
the
Senate
Appropriations grams in addition to the atomic,;
Committee to $7,595,449,868 when
energy project,' the committee ap¬
it approved the measure June 27
proved $281,500,000.
/
—

ih such classifications

electrical

an

mittee recommended.
$110,000,000;

War

-The

that of 1941. The Senate commit¬

as

Guard

men,

For the National Guard the com¬

Senate

Miley said the supplement
includes a wide variety of items

Mr.

ment

thought

t a r y,

these active forces
National

a

157,100 sttudents.

The supplement brings up
date the original 34-page list

e er e

average

National Guard of 47,646,
organ¬
ized reserves of 1,053,000 and a

Industry Association of New

Miley, Association S

up

be

240,000 officers and

es¬

war-America.-'• /- ••/•'••./'//.

by the Commerce

an

Army strength of 1,279,006 for the
coming fiscal year; with a total
of 1,070,000 on June
30, 1947.

price situation, and the out¬

look for

contemplate

morrow,

of
every four
their own homes.
meeting will dis¬
cuss means to accomplish this goal
by the middle of the century/fur¬
ther expansion of the veterans'
out

families occupy
The Milwaukee

Exemptions or
Suspensions Listed

on

I must have that

,

13, page

The

| A

respect

that secret.

Explaining why it cut funds for
Army relief and Government! ac¬
tivities: abroad,
thef Committee

meeting this last spring the

a

well will pursue the same
gen¬
line of policy With

eral

abroad would reduce the need
for
large cash outlays for food.
/
adopted1 as: a five-year goal/for
Funds approved by the Com¬
the savings and loan system the
mittee, subject to House action
advancement of home-ownership
When the bill is considered to¬

SPA

the bench."

said

chinery for seeing to it that others

Executive Council of the League

.•as/Uhie|/Justice'-.;waShreTet^ed/ip;

re¬

spect for the courts of the country,
and we know that that
respect will
be enhanced when Mr. Vinson be¬
comes Chief Justice of the
Uni.ed
States

of the nation's

$9,000,000,000 and $10,000,0.00,000 in size/ will have supplied
some
$750,000,000 of credit to
home-seeking veterans under the
GI Bill of Rights, and will be fi¬
nancing homes for upwards of 3,/
000,000 American families; Mr; Irr

"Speaker Rayburn,- whoi presid¬
ed, declared that: President "Tru¬
man

are

'

ness

re¬

prosperity. It is an essential first
step
toward
world
peace
and

merit

to

to

As Chief Justice

world

a

and

vide

support; and

of 2,000 items issued
by the Asso¬
ciation June 10. Thomas Jefferson

lately has been torn by
we

line

savings

York.

public policy regarding, the for-, the public and thousands of
eign economic relations of the sons jammed the grounds to
United States. It is

conven¬

ests

.poor/:///^

and

augural.

gether to review

of

which will be used to
pay for
contracts into the fiscal
year 1948
—after hearing Army heads out¬

tween

to

International

issued at an all-day
organization
meeting in New York on June 27

part

—

constitution and

oath

and

Committee

/
the

increased

fund

United -States until we aire satis**
fied that there is workable ma¬

he took the oath of office.

/"The Chief Justice,, it was stated
by the Associated Press; took one

mony

The

service

primary inter¬
by next fall, Mr. Irr. pointed
out. By November this system of
coroperative. thrift and home fi¬
nancing associations will be be?

as

Chase Bank;

Federation of Labor.

atomic

.

Vice-President, The

American

is

committee

the

o'.her;; reliable

the

have

Milwaukee

know

we

respect; will

at

of

I The

cpe rativ.e

banks

of

Air;

Forces had 39,000 planes.

Both Gen. Dwight D. Eisen¬
hower, Army Chief of Staff/and
Ma
largest dimentions it has ever
j or-Gen. Leslie R.- Groves, who
When;Mr; -"Vinson" becomes, chief
the
Manhattan'
justice of 'the United States, ac¬ known/according to all prospects, heads
project,
said the League's advices, which which produced the -atomic
tively on the bench.",
; .; /**/
bomb,
continued:
cautioned
against sharing the Aj Tt was observed that members
:;
f The principal concern of the bomb secret at this time. Gen.
of* the Court, including Justices
Black and Jackson'were grouped associations,
the /production of Eisenhower said: "I ami against
housing, will undoubtedly still be giving away, any sceret of the
around the new presiding officer
that

tion. The information

Watt,

Irr

allotment

tion Which the

the

the-judiciary—the ju¬

most ' respect
the country,

e r

55th

size

cash

1,046

/The first full-

ihe

is

forces'

modern planes and gliders. At the
of April of this year the

year
of the League.

Govern¬

States

air

end

institu¬
This

The

included $388,776,454 for the
pur¬
chase
of
approximately

com¬

tions.

Cue to the unusual ceremony,

h

guard j squadron in each State.;:/
/

of

prises 3,600

remark by Presi¬

minimum

post-war air force
needs 70 combat groups backed
by
a pool of at least one air
national

League,

e

|

District of Columbia.
Mr. Vinson
took the oath as 13th Chief

Robert

P.

which

Organizations; Paul G. Hoffman,
President, The Studebaker Corp.;
C.
Joseph
Rovensky,
formerly

Representative

Henry

was that 1 was
losing Mr. Vinson from the Cab¬
inet of the President."
*

gret that I had

sued

.

of

28

President

of 175- articles, exempted r or sus4
friendship and a rising standard
pended from OPA price control
of living
among
our
own
and from
May 15 to June 15 was is¬

Charge

June

/

r

ip the United States to the• place

Immediate ratification of the proposed loan to Great
Britain as
a necessary first
step in rebuilding both world trade- and World
peace was urged on June 26 at the •

in

on

<

where

Century Fund's Committee, headed by Winfield W.
Riefler, contends it is first step in rebuilding world trade and peace.

Minister

/

of1

Irr, Baltimore,

Briilsh Loan

Twentieth

tions of the United States.
Chairman of this Committee is
Winfield
W.
Riefler,

the

make" the

the United States. And the

in

first

kee Nov, 18-22,^;it: wfis ^announced
r

Senate confirmed the
nomination on June 20. '
"/

x

.Gen. Spaatz, Air Corps com¬
mander, told the committee that

convention

Secretary of
Treasury the Chief Justice of

3265.

f

.the

States Savings and Loan
League will be held in Milwau¬

1946

faithfully;;f 1 finally de¬

to

re¬

United

The

which I labored

on

adequate to detect and

pel any surprise attack, to launch
crippling counter-offensive and
to
back up
the land : and sea
forces.
'
^
^
i
a

League To Convene

///H-/ ;/

'/■/'

-' •:

Presidents have had
the honor and privilege of ap¬
pointing a Chief Justice of the
United States," President Truman
said/ "That duty fell upon me.//
;

/

.

are/countries whicJi j participate

governments con¬
:
' %■' • porting' various food items.

,

was

In¬

time the/ Associated "Press said:

/

/

said.-

man

force

U. S, Savs. Loan

'/'fy-f/ /:///
/A/ ;//;!
j "At least I hope it is," Mr. Tru¬

cided

statement

announcing
the
changed
plans,
whereby
that
Board ceased to exist July 1, was
issued by the Three-Nation Board

country and for Mr. Vinson,

long and-

Three-Nation Board until Dec. 31.<^
A

the

too. 1 '♦//

Thursday, July 4, 194(5

even

■

/

in the
atomic program and the decrease
in the enemy relief appropriation
the bill approved by the House
incorporated
mended

The
the

amounts

as

recom¬

the'Budget Bureau.
accepted in full
recommendations of its Ap¬
by

House

propriations

Committee

summarized

Press

advices

of

as

The committee

which

Associated

in

June

20,

from

follows:
approved in full

the $1,199,000,000 allotment for the

Air Corps after hearing Gen. Carl

Spaatz

Holders of 25-year 5%'%

relate

plans

for

an

sink¬

ing fund gold bonds, due Feb.

1,

1955, -of the City of .Sydney, New
South Wales, Australia
notified

that

$73,000

had

were

Washington,

Draw Sydney Bonds

;

Except for the increase

amount

of

these

drawn

by

lot.

through
Aug.

1,

the

1946,

bonds

for

are

being

principal
has

been

redemption,

sinking

fund

at

Payment

par.

on

will be made at the principal of¬
fice

of

the,

successor

fiscal agent, 1

City Bank Farmers Trust Co., 22

air William Street, New York.

Volume 164

Number 4504

:

■

THE COMMERCIAL & FINANCIAI^ CHRONICLE

*.

13$
v

•

Unchanged—No Immediate /;/ Senate Group Voles
Sharp Pries Increases Expected by Industry Sugar Act Extension f

Steel Production
;

follows;

us

i

.

■

.

"

,

,

on

.

the. general view in the»>
:—
——
Industry that no sharp increases capacity for the week beginning
in steel prices will take place in July 1, compared with £7.2% one
the immediate future now that all week ago (showing no change),
government price controls' have; 55.2% one month ago and 88.1%
one year ago.
The operating rate
/been removed,. ' • '
'
,v
"No steel company would > be for the week beginning July 1 is
expected to. step out front with a equivalent to 1,536,800 tons of
healthy price raise for fear of steel ingots and castings, com¬
public censure and the possibility pared to 1,536,800 tons one week
that such action might contribute ago, 972,800 tons one month ago,
similar leg-'

or

/

are

the

price

those

products on
which the return is low. Until the
Current; situation is clarified no

,

of

action of any
is expected.'
"The

i

■

make

on

steel prices
1

confusion

ance,to

;

kind

or

reluct¬

the

pricewise in the steel industry or in
the iron and steel scrap industry
was-reminiscent of the days fol¬
lowing the end of the National
Recovery Act. Scrap brokers and
dealers early this week were sit¬
ting tight and1 shipping on old
contracts. Steel companies/on the
other hand, were insisting that
any scrap they purchased should
be at the old ceiling price. If the
jperiod during "which-the govern¬
ment
attempts to '- have passed
some type of legislation breathing
mew life into the OPA corpse is
too long, scrap prices may spiral
any

move

"Currently steei/cbfnpanies are
attempting to keep operations at
•,

as

high

a

level

as

possible.

Some

firms /would pay, slightly higher
/ prices for scrap in order to get the

and
-;

1,613,700 tons one year ago.
of
Cleveland,
in its

"Steel"

..

of latest news develop¬
ments in the metalworking indus¬
try, on July 1 stated in part as

summary

"Products

follows;

of

America's

this year.
Ma¬
strikes in the
major; plants
producing
farm
equipment I will result in a/preK
duction of equipment 25% to 30%
lower: than 1945, despite the fact
that
production /controls' were
equipment

,

terial shortages and

lifted

of V-J Day..
"Steel deliveries to

Both

"Huge backlog? and continuing

3 jheavy

demand caused ' the steel

■

to

mills

most

establish' .any

have

sort ;of

delivery schedule.
Only recently
reaching high levels of produc¬
tion, tne mills are entering the
third quarter while still rolling in
many cases on orders scheduled
for first quarter production. / The
lag is about three months on the
average, but it varies widely £ran:
one product to another..
j
"That

these

.

mills

are; not

in

even

worse

,

der

quota

some loosening of or¬
for 1947 is expected,

obligations,
books

„

,

,.

„

*

...

•

ally promised for. April. However,

Senator

the

received

indicated

that

strong

obligations

likely will be
of the year.

a

' /

remain,

and

factor at the end
.

:

for

it reaches

only

after

a

rec¬

sober

objective study of the alter¬

natives that face

us.

-

.

r

.

Congress has been considering

the fantastic charge of spokesmen
selfish
interests
that
yon

short, and this fact places you in
particularly difficult position. .
Nevertheless, it is my hope and
belief
that
Congress, following
the receipt of a veto message from
you, will squarely meet the issue

sought extension of the price-con¬
bill in order to perpetuate

a

trol

yourself in office.

expressing my deep regret
at your leaving the Government
know that I am merely adding f
my voice to one much greater—• |

which

confronts us and provide
the legislation which is essential
if we are to maintain • a stable

the 'voice

pie.

of

the

American

peo-|

The

people of this country?
conscientiously and
faithfully you have worked to
protect their interests both dur¬
ing the war and during the tran¬

In any event, that hope
represents the people's last prac¬
tical charice to avoid a period of
sharply increasing prices followed
by a collapse.

how

know

economy.

sition from

I have

*

•

In

participated in the fight
keep down the cost of living

—business

men, farmers, factory
workers, whitecollar workers and

war

to peace.

;

<

They know that under your;
leadership, the Office of Price Ad¬
ministration

and

the

Office ' of

Economic Stabilization have been,

powerful bulwark

a

against the
which,
might long since have destroyed
the security and the hopes of mil¬

forces

in

our

economy

cane *

gigantic issues which

This

per

ton, effective June 24.

was

the first advance in Lake Su¬

the

are

involved,

have given me their whole-hearted

producers, support.

-:'

'

■

;

„

been forced

to step on many im¬

».

time and

again you demonstrated
speaking out vigorously for the
basic principles of this Adminis¬
in

tration.
,

>

In

resignation X
to assure you and at the
time every American, that

accepting

want
same

your

Administration

this

give

will

never

the fight. We shall c6ntinue the battle against inflation,
up

with

every weapon at our dis¬
posal, and shall not rest until
this country has reached perma¬
nent high levels of production*
sions.
and the President about his pro¬
As you know, I had hoped to prosperity and employment.
posal/to reduce; off^^
quotas
leave Washington/ following -V-E
;; The
hope that , you may re¬
if necessary, arid offer his amend¬
Day/ again after V-J Day and main in public life as a champion
ment on the Senate floor should
of
the
ag&in last February. I agreed to
principles of this Adminis¬
he consider ft;advisable;; J ,'r/
s/ay cn only at your insistence.
tration, and the assurance that I
The Committee agreed that an
may
continue
to call upon you
In spite of that fact, a few blis¬
qver-all revision/of the Sugar Act
ter opponents of price and rent from time to time for counsel,
would require extended hearings
control, in an effort to rationalize will be some consolation for the
which are impossible at this ses¬
their own position, have claimed loss bf so tireless and effective a
sion Congress is pressing/for ad¬
that I am personally anxious to public servant as you have been,
journment some time next month.
over a period of more than four
extend these essential controls
in7
Senate approval of the three' '
definitely and unnecessarily.
' difficult,years...
year extension of the Sugar Act
With every good wish. / ?/ • ;
The announcement of my res¬
would send the bill to a confer¬
;
:
Very sincerely yours,
!
•"
ence
with the House. / The one- ignation/ait 'this /tinie, -effective
HARRY S. TRUMAN.
July 10th, will eliminate any ves¬
year extension was passed by the
tige of doubt as to my own posi¬
House on June 17, "
■'/>:
tion and'further sharpen the grave
issue: whichJ Congress must face Granger Heads Lada-Amer.
in the next seventy-two hours in Div. in State
Department
the event of your veto. Clearly I / William: T.
Stone, Director of
.

•

.

«

Past With China On

could

Pipeline Lend-lease
The/

State -

nounced

*

Department

June

on

17

that

in

any

China

an¬

am

submitting

ment pointed out that this did not

Americans, the courageous efforts
that you have made and are mak¬

ing in the interest of the country

tlement

a

announce-

fina! Lend-Lease set-

with

as a

China, but merely
an arrangement
covering goods iri
tjie Lend-Lease ''pipelines". (items
in process of delivery of procure¬
ment at the time of Japan's sur¬
render). Payments of both princi¬
pal and interest,: at the rate of
2%%; annually, .will commence
July 1, 1947, to be completed on
or before July 1, 1976."
/;According, to' President Tru¬
man' s latest Lend-Lease

Congress, /China's
Lease

obligation
was

last Dec,

Lend/

the

United

to

$1,335,632,000, through

31.

China, said the As¬

Press, has

continued

to

straight. military /Lend-

Lease "supplies
which also

$58,900,000

are

since

V-J

Day

not included in the

"pipeline" agreement,

the State Department said.

whole.

-

1

•

,

.

'

future if there is; any¬

3 In the

thing. that I can do to be helpful
to you

of

.

personally,

associate chief.

as

a

Mr.' Granger, is

veteran of 17 years

in Argentina. From
he

experience

1923 to 1929

employed by the Inter¬

was

national Harvester Company's

ad¬

lo the Ad¬
ministration, I hope that you will vertising division in Chicago. In
1929 he was sent to Argentina; as
call upon me.
: • /
With, my very best wishes.
the company's advertising man¬
Very sincerely,. •
/ '
or

,

y

•

„

-

/;

,

i

'

CHESTER BOWLES.

ager,

;

President Truman's Reply

report to

total

Affairs

my

constitute

The

Cultural

Fitzhueh Granger as chief of QIC
resignation Area Division IV (the American.
at this time with; genuine reluct Republics). Mr. Granger was for¬
tance.
I recognize; the tremen¬ merly Public Affairs Officer ' in
dously heavy burden which rests Argentina for the QIC. Dr.; Wil¬
on your shoulders.
I appreciate, liam Schurz,. who has been acting
as, do
tens of millions; of; other chief of
the division, will continue
I

adding that the amount is to be
instalments.

and

mation

:

ture.

agreed to < pay the United
States $58,900,000 for Lend-Lease
supplies which were en route or
on order on V-J Day, Washington
Associated Press advices stated,

nual

the Office of International: Infor¬

which the Congress is the S.tate Department, announced
about to present for your signal on June 26 the
appointment, of
hill

ary;

an¬

paid in American dollars in 30

here

remain

not

event to administer the inflation¬

had

States

\

operating rate of steel companies
having 94% of the steel capacity perior ore prices since fixing bf
of the industry will be 87.2% of prewar prices in 1940."




Act since last February. The time
left before midnight, June 30, is

ommendation
and

as soon as

I have made this

desk.

your

Chairman

receive

had

mindful of your

the extension of the Price-Control

bill be vetoed

portant toes. Inevitably my ef
forts iri behalf : of all the people
George
(D., Ga.) have
antagonized : thbse "minority
suggested that Pepger consult the
groups which seek special conces¬
State and Interior Departments

shortage.

of Lake Superior iron ore 50 cents

on

Fla,)

period of critical sugar

war

July 1 announced
that telegraphic reports which it

institute

am

Washington, often,
expressed since V-E Day, and ap¬
preciate your self-sacrifice in re¬
maining at your difficult post as
long as you did.
Your action in submitting your
resignation before the Senate had
acted is an emphatic answer to

,

"Office of Price Administration

Iron

and

I

desire to leave

particularly in Florida and Lou¬ # But in carrying out my respon¬
isiana, that when quotas are re¬ sibilities, it has been necessary for
established they will not have to me to say "no" one hundred times
abandon sugar processing facili¬ for every occasion on which it
ties he said were started during was possible to say "yes." I have

sociated

American

-

(Dem.,

Pepper

domestic

assure

has increased prices of all grades

The

sus.-

war.

askedrihat the bill be amended to

and ;Steel

;

beeh
.

"

,

that

condition

refused

;

year's' shipments,'

luctantly,

that this

.

Sugar ^quotas- have
during - the

the ,/agr i-r -i
p'ended '

•

industry jas O'Mahoney said there is no possi¬ consumers generally. The great lions of workers and their fami¬
well
as
to other
metalworiring bilitythey-will be reestablished majority of our people, who un¬ lies. They know your personal
plants are now in such a chaotic next year.
derstand-only too clearly thfe fearlessness and integrity, which
\

and
while
there/ has been no
Industry, this week in most in¬
formal opening of books,
some
stances to pay time-and-a-half in
producers are" accepting rlijnit&d
/, primary steelmaking departments
tonnages of plates, for next year,
t for Fourth of July work.
with a little in some other lines.
M "Steel
shipments this; month
Will probably be at the highest Leading trade interests expect no
level than at any time since V-J sweeping action along that-line
for some time.
One large pro¬
Day. Most firms have been able
/ to replenish inventories ahead of ducer/ does not / expect to open
books for next year until about
steel finishing mills with the rethe beginning of fourth quarter.
suit that July operations will pre¬
Most producers are too far behind
sent a balanced picture.; The only
at present to plan for 1947.
) factor which could prevent a con¬
; "Many
sellers believe that oh ■
tinuation of the current high level
the basis of commitments; orgiri/ of operations would be a crisis in
ally made for this year they will.
/ the supply of scrap.
Scrap this
have a substantial carryover for
week was still difficult to obtain
and the laying of plans for nation- 1947, a number believing .it will
be close to three months, indicat¬
jvide scrap drives indicated the ing *• they
expect to gain little
seriousness with which the Civil¬
ian ! Production
Administration ground during last half. New or¬
ders booked now probably woujd
yiews the matter.
fall mainly in second quarter next
'.: ."Most steel concerns have still
failed as yet to open mill order
;/ "Some producers"'have .techni¬
books for 1947 business. This may
/: be interpreted as having been a cally blocked out arrearages, now
3 Wise move especially in view! of shipping in July tonnage origin¬

prices, producers will be free to
name their higher quotations be¬
fore accepting contracts for next

j

.»-

implement

cultural

l

the price situation. If no further
controls are reinstituted on steel

have recommended

...

•

of order commitments and

ested.

i

I

•/:.

.■•

O'Mahoney / declared the three- to
extension also would remove for four and one half years. It
1948 elections, has been my responsibility to ad>since the three-year period will minister the stabilization
program
expire Dec. 31,1949.
in the interests of all the people
;

as

.

1 accede to your request most re¬

seriously discred¬

ited.;.: / '/./,•;/' •/. ■.';//;„/

and

Johnson

.

the issue from the

,

.

Senators

be

year

position/ considering
heavy
pressure/ for
/ ating^ level." Should prices soar especially
substantially in a wide open scrap these products, may be ascribed
//market,^ "steelmakerS./:/w°^^V b® to the fact that during the recent
//forced to tapidly adjust their own coal strike many diverted steel to
light flat-rolled/Items, including
; prices of steel products in order
to V offset/ additional; increased tin plate, at the expense of other
products. Thus, bars, shapes and
steelmaking costs.
"For the next two weeks
at plates lost ground, with arrears
least the price relationship in the ages in some cases and on some
sizes now more than three months,
steel industry will probably re¬
despite relatively somewhat less
main unchanged.
Attempts have
demand compared with light flat
already, been made by some scrap
''
interests to consign scrap on a products. .Certain types. of wire
retroactive
basis.
This
unusual and/pipe areas straigent as/ever.
"Going into third quarter with
procedure in a. free market left
steei firms which had been ap- capacity generally covered for the
remainder of the year on the basis
;
pfoached with the idea uninter¬
material and maintain their oper-

.

.

farms will be grown without the
aid of any substantial volume of
new

the

,

.

Steel firms at this time
primarily interested in raising

extend

to

Sugar Quota Act for three
years, instead of one year as voted
by the House, the Associated Press
reported from Washington. Expir¬
ing the end of 1946, the Act pro¬
vides for production quotas in the
domestic areas and import quotas
from foreign, countries. The same
advices continued;.
The three-year extension was
proposed / by
Senator
Johnson
(D., Colo.), who said it would
provide greater, stabilization in
the .sugar .industry pending the
consideration of various proposed
changes in the basic law in the
next session of Congress..
Senator O'Mahoney (D., Wyo.!)
argued in support of the threeyear extension, although he said
he would press ior hearing next
January ori a bill he and Senator
Johnson introduced jointly to in¬
crease domestic sugar quotas.

!

to revival of OPA

20. voted

-

.

(Continued from first page)
self would

1937

"It is

$ islation.

June

.

Bowles' Resignation Accepted

Thej Senate Finance Committee

•

f ///, "While the steel industry may soon raise the price of some steel
products, this action would have taken place whether or not the OPA
passed out of existence, since the agency was expected to grant fur¬
ther price relief/' states "The "Iron Age," national metalworkipg
paper,: in its issue of today (July 4) v which further adds in part

'

•

.

.

Dear Chet; •
•

'

?/'///;/ ■;/ -3;

'
:
has taken

Now that the Senate

position which he held

a

through 1941. On January 1, 1942,

the Office of the Coor¬

he joined

dinator of Inter-American
as

Affairs

executive secretary for the. Co¬

action which you ordination Committee for Argen¬
of this date tina and manager of the Asoci(June 28) I have no alternative
acion de Difusion Inter-Ameri¬
but to accept your resignation as
Direcvor bf the Office of Econbmic cana. He served in this capacity
the legislative

forecast in your letter

Stabilization, effective at the close
of business on July 10th next.
;

Deeply as I regret to see you
the Administration I can

leave

for four years
ment

as

OIC activities in the

of

charge

American

symphathize heartily with the rear
fons which impel you to this step. Aires.

*

"1

*

•

.

until his appoint¬

Public Affairs Officer in

Embassy
•

at

Buenos.
.

.

136

THE COMMERCIAL & FINANCIAL CHRONICLE

involved

Causes of Labor Strife
(Continued from first page)

locations far greater than in
last

the

one,

American

»■

were more intent

than

the

I

before

ever

to return to conditions of
stability
and

plenty.
But the worker,
farmer,
the
businessman—
was guided according to his
lights toward that goal.;;

each
own

A conflict

inevitable.

was

after another disputes
on

the industrial

in

,

fact

most

■

I

-

little the serious

interruption
share of the

pleased

labor.

settling

A

tide

of

without
and

an

of

ness

and

i

What 'did

to

-

-

a

the

charter rof
wage

de¬

to compel workers to

cept the terms

nit

that free Americans

posed
ceived

to

will.

It

was

their

own

into

pro¬

con¬

posed legislation

as

a

means

eliminating in¬

study of all the underlying

facts.

I

to

bring

recommendations;
upon

a

upon

In

by union agree¬

In

manufacturing indus¬
8,000,000, or 67%, of the

manufacturing

I want to

means

of

dealing with

number of work-

covered by
or

union agreements,
74%, worked under

launched through its open
public investigation.
I know
in these hearings this Committee would deny no responsible
and

that

Stoppages
war

and

management
,, vv...

,

are

con¬

.V; ;

always bound to bring instability
in

industrial relations.

locations of

war

The

dis¬

had reached into

mine

every

and

j every shop. They deeply affected
the

life

in

every

home.

| created maladjustments
sions.

It

is

against

They

and ten-

the

back-

Congressional
investiga¬
tion has just been started.
It is
to

clusions

to

or

anticipate its

con¬

plead for specific
remedies at this time.
It is my
purpose here

to place the recent

developments inlabor-managerelations in their proper

ment

perspective, to indicate the major




wide public no¬
born of contro¬

tice.

They are
Their extent and effect is
always exaggerated in the public
versy,

This

not for me

February
March

latest

that

55,100
118,300

-

their

in

workers
pages

mind.

The

extent and duration
is difficult to measure.
statistics lend themselves

in

work

perspective.
In
total of 3,467,000
in

time

work

stop-i

another in

or

Of these,

involved in strikes

in

work

stop¬
time after V-J Day.

curate

measurement,

the

most

publicized
measure
of
strikes is the number of workers

worki ng

time

strikes,

lost

was

because

.'M-

v,

every

hundred workers remained hard
at work.

Again I want to emphasize that
must

we

their

consider

those

facts

in

perspective.
We
must not permit the exaggerations
bred by prejudice and hysteria to
stand as a substitute for reality.
Again I must insist that my con¬
proper

is neither

cern

facts
state

in

to

exaggerate the

to belittle

nor

them *fairly.

them, but to
The fact

;

thr.t

January, 1946, the number of
who participated in the
work 'stoppages
taking

be

When the

strike; wave reached
its peak in 1919, ' following the
last
war,
the total number of
workers

involved

reached
toll

4,160,000.

in

industrial

of

following the last

strikes

/

That

the

was

readjustment

war.

„

But

com¬

the dislocation resulting
stnkes which took place

in
in

In 1945, the phys¬

ical volume of industrial produc¬
tion was more than three times
the volume of production turned
out by our industry in
the strikes after this

times

1919. Were
three

war

great as after the last
No, while the dislocation
was
greater, while the war had
been longer and its effect on the
as

one?

industry
extent

industrial

of

wake

far-reaching,

more

industrial

of

strife in

the
the

readjustment

not

was

greater, but actually
smaller, than after the last

much

stress also the fact that

me

measured

involved

ers

strikes

of

cannot

alone.

It

is

tremely significant that the
age

duration

in 1945
each.
war

be

by the number of work¬

was

of

ex¬

aver¬

work

stoppages
only 9.9 calendar days

It compares
years

with the pre¬
of 1935-1940 when the

average
work
stoppage ranged
from 20.3 to 23.8 days for each

stopoage.
It is clear that the in¬
tensity of the strikes has greatly
diminished

as

compared with the

prewar record.

urement of work

relation

days
and

of

between

idle
the

as

picture

our

total

the

total

result

a

total

This

stoppages is the
of

prewar years,

the

strikes

available

relation
of

expect
diminish and

to

decline unless

causes

Strikes

was

to strikes

negligible

measurable;

This

in

war¬

barely

and

becomes

remarkable

view

in

even

of

the

fact

thatjV under the rigid wage
stabilization program, the average
worker faced with rapidly rising
living costs was unable to .obtain
adjustments comparable to

called

"wildcat"

feels is

But usually this type
stoppage is very short and the

of

workers

involved

the

work

strikes

For the

beginning with 1927
of

Labor

began to keep figures of this type,

back

are

at

next

morning.;;;: Most
only after prolonged
with
management

come

negotiations

the loss of income due to (the ris¬

after countless hours of discussion,
at union
meetings, and after a

ing cost of living. ::; .
Preliminary estimates

democratic vote of all union mem-;
bers.
The strike is an economic*

wage

indicate

that for the first four months of

disputes

of, this

that

ments that
!

duction,

It

"

been

the

im¬

occur,

major
settle¬

reached

cleared

did

,

the

year

has

In

were

way for

uninterrupted; pro¬
is Significant that

strike notices filed under the War
Labor Disputes Act which reached
a
high of 250 in the ' week of
April 17 declined to 140 in the
•

week* of

May 22 and fluctuated

close to that level since.

Examine * these

'

them

facts.

From

;

will be compelled to
conclude - that 'the hysteria which
seemed r to

grip Y the * country's
newspapers and radio has magni¬
fied the impact: of the recent
strikes out of all proportion.
average
reader,
headlines and the

The

the

scanning

stories

news

during the past months, has re¬
the

impression

reconversion

or

that

our

has

effort

"stalled,"brought
still" '

toHa

"dealt

been

stand¬

death
blow" by those strikes.-' This does
not

It

even

even

is

come

and

hard,

is

but

our

crease.^v:.Y^Y^M:v;:"-';
This

the

economy

■"

brought out clearly by

Production

for most

shows

which

that

industry groups, produc¬

ts nreached

last April was very
substanitally higher than in Sep¬
tember, -J945. "This
includes,
among others, such major groups
as lumber, textiles,
leather, manu¬
factured foods, stone, clay and
glass, paper, printing and rubber.
The declines have been extremely
small

where

in

occurred

and

the

total

industries

production

was

curtailed

because

the

In transportation eauip-

war.

ment,

for

there

tion gas.

this

example,

of aircraft and
was

war

ships.
a

the

of

the termination of

eum

end

of

reflects

production

In petrol¬

decline in avia¬

The alcoholic beverage

production was suffering from the
grain situation. So it is clear that
stoppages have not been an
important factor in these cases

work

declines

did

occur.

It

is

also clear that all the way along
the line, industrial production is

rapidly shifting into high
Let

us

fair

settlement. do

consider

unfair

ment 'at

the

•

unjust treat- %

or

hands

of manage¬
*

To

the
workers
involved a
strike is a trying and terrible ex--.:
perience.
It disrupts :> the work¬
er's income and jeopardizes the

security of .his job. Workers don't
on strike lightly or? without
cause.
They strike only when
pressed into it by force of a real
injustice
which
they [ can ; no?
longer tolerate.
Behind every
go

v

strike

is

there

a

deep-seated
stoppage
that;, calls for

grievance, behind
is

a

wrong

adjustment
most cases

every

and

,

correction.

.

In

that grievance and that

wrong go to the very roots of the
economic well-being of the wageearner and his family** *

Work stoppages are identified in,
public mind
with
unions.

the

Even

tend

students

of

labor

relations

to

identify collective action
among workers only with trade*
union action arid to consider work

restrictions

and

work

only in relation tp
dispute.
Yet the
that

■

work

organized
are

a

interruptions
of

areas

shows

in

un¬

employment

frequent arid: more

more

than in the

current

stoppages
trade-union

record

areas

re~.-

of em¬

ployment covered by trade union

bargaining agreement.
This fact is brought out with

■:

the Federal Reserve Board Index
of

reasonable

fail, the strike is the only means
available
to workers by
which
they can protest against what they

has. continued to in-. collective

whole

a

industries

some

hit

productive effort of
as

a ;;

close to the truth.

that

true

hit

were

When all other methods to reach
a

there

you

ceived

of last resort, \ .utilized
only when all other methods fail. /

ment.

-

proving / steadily.

the

;

weapon

gear.

look at the reconversion

force by

study of "Restriction of
Among
Unorganized
Workers,"
prepared
under- i the
direction of Stanley B. Mathewa

Output

with

son

William

the

collaboration

by no

means

out of

.

of

M.

Leiserson, Henry S.
Dennison, Arthur E. Morgan and
Walter B. Bingham, published as
far back

as

1931.

The clear find¬

ing of that survey was that work
interruptions in unorganized es¬
tablishments

result in a greater
comparative loss
of
productive
time, over the year, than in union¬
ized establishments.
»,

Trade
duces

union

the

cipline

organization

kind

based

of

pro¬

collective dis¬

voluntary ?and
willing participation of the work¬
ers

for

on

which

effective

no

stitute has been

or

can

There is

no

that

of the main

one

question in

the greater and more

dislocations

sub¬

be found.
my

mind

reasons

why

far-reaching

following this

war re¬

sulted in proportionately a far
smaller extent of industrial strife
than after the last

war

is due di¬

rectly to the growth and maturity
achieved

by trade unions in the

the woods yet even in the sheer
physical task of tooling up and
readying for full peacetime pro¬
duction. But even so, in March and
April, 1946, the physical volume
of all industrial production was

Department

a

grievance.

proportion
at

which
get
shop stew¬

emotions

temper over what he
unjust treatment of a

an

quarter century.

not

of

strikes,

when

as

Industry is

is

result

cerned.
To be soure, there may
occasionally be spontaneous or so-

United

what

the

sudden and thoughtless action on
the
part
of the /workers con¬

production in proper perspective.

economy

this

.

ard loses his

lost .due

to

the fun¬

underlying

not

are

industrial
strikes

reach

we

working
gives us a

work because of strikes.

when

man-

strife

time

where

The most accurate single meas¬

cannot

hand,

.

extent

Causes of Unrest

.

We

out of

workers

whose true significance must
properly, appraised.,
■

./Yv.?

when human

more

average

you

and April of
higher.
UO

occur

situation

of

out

March

devoted to
uninterrupted war¬
time production.
It means the

over-all

97

in

damental

April

stoppages

attained

industrial unrest.

only five one-hundreds of 1 %
worked. -From Dec. 8,
1941; to Aug. 14, 1945, only 11
one-hundreds of 1% of available
time

time

if

take
highest peacetime production,
year of 1939, still the production

of

rupted.
Since

true

widely

1942

work

Day

was

Even

was

the post war crisis, 97% of the na¬
tion's = work - continued
uninter¬

idle in any month since V-J

Strike

>

number of man-days idle in

that while three out of every hun¬
dred workers; were • involved: iri

workers

prewar

above the

1935-1939.

this year was 49%

They
show that labor's no-strike pledge
was
scrupulously kept throughout
the entire year.' For
example, the

851,700 last October.
This,/? however, • represent only
3.1%
of the total' number of
workers employed.
This means

of

'

62.5%

remarkable record.

a

statistics

increase

highest number

in 1945

time.

ac¬

j

the figures

years

194-3, the proportion of available
working time lost because of
strikes was 3 %. ■; This, of course,
was much higher than our war¬
time
record/- - ' But
this figure
shows that even at the height of

The

of strikes

easily tp misinterpretation.
Although it is not the truly

war

available

involved

some

the

What does this mean?
It means
that 99.89% of available time was

the course of the year.
were

For

of

was a

one

sl% to

five-tenths of 1%.

226,500

involved

at

to

327,400

proper

workers
pages

the

working time has

one-tenth

from

ranged

925,000

the

1945, there

of

available

1,000,000
-

These

the

to peace is

,

labor

1945

1,750,000
1,430,000

April

Let

Work

group
the opportunity to come; around
of
these
developments
forward with the expression of that the experience of work
stoptheir views and with the
pro- pages since V-J Day must be apposal of solutions to the real, praised.
practical
problems with which
Strikes attract

fronted.

1946

January-

war.

responsibility for this study it has I every industry,
now

238,100
229,300

recent months.

Transition from

com¬

851,700

"116,600

the

not

choosing
assuming the

234,800

660,400

pare

passing fit of temper-, but

solid facts.

610,900

503,900,

the chosen

tions.

mend this Committee for
this course and for

1944

November

forward

founded

1945

December

< union
members for whom the union was
> were

gaining with unions by manage¬
ment and of the union
Shop as the
most effective means of
achieving
stable
labor-management
rela¬

Congress to con¬
investigation of the causes

unrest 'and

wage-earners. \

indicate
the
extent
of
wide acceptance of collective bar¬

asked

v

place in that month, reached the
postwar high of 1,750,000 is one

American

figures

to temper its judgment by a

careful

of

the

labor-man¬

providing for some
form of union shop or mainte¬
nance of
membership.
Of these,
6,210,000, or 45%, were covered
by the union shop clauses. These

statesmanship

.

of

10,212,000,

I called upon Congress to
respond

an

become

agreements

At that
time, on behalf of the
American>" Federation of :.Labor,

duct

bargaining."

of

means

Of the total

very objective it claimed it would
achieve."
y;yyy

Year

agement relations for the majority

ers

ill-tempered, and, above
all, ill-designed to accomplish the

and

the

•

their employer.

with

October

Work

Month

various

in*-

eeived,

crisis

of

y

The pro¬

Wisely, President Truman refused to approve the Conressional
proposal as ill-advised,' ill-con-

the

is

production
wage-earners
were
employed y under
union
agree¬
ments.
In other words, two out
of every three workers
engaged

dustrial unrest.

to

an

labor union is the

bargaining has

tries,

of

providing for all

of

of

Union representation for collec¬

ments.

this and much more, was offered
in the name of industrial
peace
and

The

ditions covered

choice for effective mu¬

tual aid and protection.

form

agreement
is
arrived

1945,
about; 14,000,000
workers
had their wages and working con¬

work

unions

the

representatives

established

destroy and make in¬

workers

That

tive

ac¬

effective the freedom of associa¬
tion, of

in

-

conditions of
dictated / to
them

against .their

employment
agreement,

process of collective

and

employment *.
without their' consent,

be¬

and equitable agreement
regard¬
ing the conditions of labor by the

signed to bring the force of public
power

has

agency of the wage-earners for
the purpose of mutual accord and
mutual action in arriving at a fair

of

was

place it with compulsion. It

bargaining

labor-management ? rela¬
Collective bargaining is a

chosen

pro¬

re¬

September

In

by

August 14.; As compared with
this, there was a total of 1,676,000

the accepted > instrumental¬

of

workers.

and

Day

Corresponding

Month in Previous

.

White

earners,

V-J
With

on

<

voluntary.
.It
at
through the give and take of ne¬
gotiations and is willingly entered
into - by the employer- and
the

,

rights

.

■

regard to terms and conditions of

opportunity to strike out freedom
American

of Collective

tween labor and management with

was

legislation

Involved

Workers

Since

Compared

as

1,791,000

L

'

\

which effectuates the set¬
tlement of the issues
arising be¬

pose to do?
It was framed by
those who saw the long-awaited
from

labor-management rela¬
"

process

carried

the
•»

this

in

come

ity

deliberation,

was

on

Collective

drafted in both houses of Congress.
On the very crest of the wave of

Congress
House.,.

falls

purpose

tions.

political unreason, it

that falls on
responsibility
management.['It is

related

Bargaining

hastily, carelessly and recklessly

from

responsibility

The Extent

hys¬

legislation

cure,

of

Stoppages
,

through 1941, this ratio of idleness
strikes, to the

total

percentage due to

show

••

which took place before V-J Day

investigation of the causes
appraisal of the effective¬
the

Number
•

'

'•

stoppages since V-J Day was in¬
deed far-reaching.
Yet it is im¬
portant to consider those figures

tions.

The ready'answer and the easy
remedy; offered was legislation.

study

•'

v-

.

in

ment

v

Without

to

peace

organized
join with

here also to? state
clearly the extent of the responsi¬
bility that falls upon the Govern¬

teria swept the country, reaching
into the chambers of the Congress

itself.

-y

show

that

Negotiations broke
down, i Work stopped.
Charges
and countercharges were
publicly
hurled by each side in some of
those
disputes.
- Tempers
grew
short.
The public outcry for a
quick
and
easy .remedy
grew
; intensive.

•••

the

Committee in examining the
It is my purpose to state
clear and unmistakable terms

my

reached.

more

upon

here

am

labor, ' the

settlement could

no

industrial

a

strike record

facts.

the

the difference with their employ¬
without strikes.
But in other

be

of

work

during

-

ing months in the prevoius year is
shown in the following table: v;.

your

ers

disputes

minimize

to

or

directly

I

of

consequences

resulting in work

responsibility for the

maintenance
that falls

and

proud to report that by far the
greater majority of unions affili¬
ated with the American Federa¬
tion of Labor succeeded in

disputes

out

settled

to either be¬

propose

Many—

were:

am

not

do

labor

through negotiation and peaceful
adjustment.

lay
down
a - few
fundamental
principles which labor believes to

I

One

broke

scene.

—

as

■

be indispensable to stable labormanagement relations -in a free
society. •
-

of

the

-:' Y:

The

problems,,that loom ahead and to

f

people

V...

in

stoppages in
current month.
after V-J Day
compared with the correspond¬

effect

Thursday, July 4, 1946

States

during

the

past

Legislation sought in and out of
Congress to prevent strikes and
eliminate

industrial

provided for
vice

every

disputes

has

conceivable de¬

of trade union restriction on

the assumption that the objective

i

v-1,

(Volume

Number 4504

achieved

collective

by

of

the

and

Other

judication'

under¬

proposals

attempted

regu¬

various

phases of
relations, v All
this has been
done and is
being
done in the
name of

of

for

the

to full produc¬
reconversion.
I
submit

quarter

four workers

; on strike
issue

of
on

1946,
of

alone—wages.

has

sue

become

predominant
•••'■

of

wages

and

on

wages

of

disparity be¬
rising cost

the

<;It is important

duction,

most

not the

war

higher

paying to lower paying jobs and

decrease in pay due to a
number
other factors
inherent in the

of

switch

| time

from

wartime

activity

trade:
and

in

Due to these

despite

the

cured in wage
come
of

to

peace-

industry

and

developments
adjustments se¬

rates, the

wage

in¬

manufacturing workers
has steadily declined
throughout

the year
W or k

following V-E Day.
e r s
i ri
manufacturing

plants have Watched their
average

;
■

weekly pay envelope fall from
$47.12'in April 1945, to the last
-

month
in

before

V-E

day to $40.60

February 1946, a drop of 13.8%.
intervening changes in

"When the
•

nition

organiza¬

-

These price increases delibera
tely ignored the fact that wage
cost "is only a fraction of the total

5

cost

of

fused

manufacturing.

to

They

consider the relation

re-

of

to productivity. Hundreds
of employers in major industries
were
handed
handsome
price
bonuses 'way above and
wages

:

i
:

;

beyond
the cost of wage ad
j ustments.
This has opened the door to au
thorized

£

price rises in

numerous

cost

of living items which de¬
prive the wage- earner of his in¬
creased wages,
some

cases

just

even

increase& has

as

soon, or in

before, the

become

effective.

*; Meanwhile, Congress has
1

]

forward

wage

moved

to

complete the job by
price control bill which

passing a
effectively

and

completely scut|; ties price control. By this action
alone Congress not
only has shown
oi;; a disregard for the welfare of the
£
community as a whole, but burnt
the only bridge of stable
transi¬
tion to peaceful and
uninterrupted
full postwar production.
The second major source of disy

•

ruption in labor-managament re¬
lations in recent months has been
the

unwise, unwarranted

proper

intervention

of

and im¬

the

Gov¬

ernment.

As is
well-known, the
Smith-Connally War Labor Dis¬

putes
,

Act

contains

a

notorious

provision requiring that a thirtyday strike notice be filed in order
to

make

work

stoppage

legiti¬

mate.
y

This has provided a strong
incentive to resort to strikes in
order

to

bring the dispute to ad-




perfected.

But

mechanica

con¬

modified and
the, source of

v

'f

1

expense

to

develop

and

factual

technical
informa¬

tion necessary to
equip the work¬
ers' representatives at the
bargain¬

ing table with the understanding
of the
operating problems of in¬
dustry, of production problems
and of management
problems fac¬

ing their employers. Technical
search facilities have been

lished by the
majority of
tional and
international

re¬

estab¬

our

na¬

unions

and have

provided them with new
tools for resolving collective bar¬
gaining issues through effective

peaceful

means.

■
,

The

improvement

in

the

,

v

col¬

lective bargaining process leaves
much ground yet to be
gained.
The
responsibility for the future
advances rests upon both labor

Vs.

the

to

answer

tions

problem is not
the enactment of

By

more

legislation.
regulation

sacrifice
wel¬

union-manage¬

unrelated to

fiat

of

In

v

and

this

the

labor

over

part which
Service of the

viding' the proof of its effective¬

prepared to march down the road

In

;

most

effective task.

During that

time

its

have

conciliators

settled

of

more

important, is the fact

stead,

Congress

ef¬

an

which

falls

approved

v

Each

bill '

a

dismally short of jits
;

and

of

$

every

this

^

of

one

Congress

i

these

>

to;

dis-^;

industrial

in mines,
shops throughout
unrest

and

the nation.

This tension) was en- .1
hanced by the contrast of a series
of decisive-actions taken
by-Con-;"*

to

gress

help business iri reconL
Acting swiftly and with¬

version.
out

v

hesitation, Congress repealed

the

profits taxv

excess

liberalized
facilities
taxes

f and

thereby

corporate

-

It further

amortization

on

v

enacted

a^yitil part of

American

our

liberties^ Restriction of

of' War

reduced

income.;- It

•

carry-back

income is

this right

its

is impossible of enforcement. The

only

society

restriction

which

the

the right to

on

taxes
is

come

below

the

where

the

below

the

excess

prof-''•

current

in¬

excess

profits
tax credit. It provided special sub¬
sidies in the .form of premium
payments for the production of

enforce

can

strike

the recent coal strike. "Can Gov¬
ernment mine coal with bayo¬

the

request went
President recom¬

enactment of

provisions of
the (right: to quit
the tax law permitting
work
corpora¬
in
concert
as
a
protest
tions to obtain refunds on excess
against junfair working conditions
profits
taxes
where
the
current
is

volving 5,400,000 workers
successfully settled through
without

^

That

The

the

factories,

right to strike,

is totalitarianism. You have heard

con¬

the House of
Representatives
not

and

The

that of this number, 11,000 threat¬
ened strikes and controversies in¬
were

cess

:r:

charge its public responsibility has
directly contributed to the tension

{

government.

a

has

failures

flatly; that compulsion will
unless this country is

totalitarian

.t

purpose.

not work,
to

such

fective Full Employment-bill. In-

only promote
-

program.

enact

Act, to increase sub¬
the level of minimum
This proposal has
been

mended

abroad and especially the wartime
experience in England shows that
the laws:
prohibiting strikes fail
in their purpose and
.

care

to

President requested
to
the Fair Labor

Commission.

without subjecting workers to in¬
voluntary servitude. - Experience

.

failed

unheeded.

plunged headlong into legislative

I say

transition., This.. was
The President urged the
of a comprehensive

nent

Congress

lawlessness. ;

the

least

ed the establishment of a PermaFair Employment» Practice

re

U. S. Department of Labor has
plaved has been
completely over-4
looked. Yet the record of per-*
formance of the U. S. Conciliation
Service speaks for itself in pro¬

at"

yet voted on this vital
legislation. The President request-'

employers,

session

Government,,

bring;

sponsibility of adjusting the work
arrangements in the light of the
practical
relationship
between
workers

of. the

decent housing, within the reach
of families of all
incomes. V> At
the eleventh hour before the re-

their

private

retention

laid aside.
The President'
urged
the adoption of a
permanent longrange housing program to s

issues

In the heat of the Con¬

cases

wages,

or

the

benefits-

Standards

employers
They provide an entering wedge
for the usurpation
by • the Gov¬
ernment

the

The President

stantially

judgments
the operating experi¬

workers*

Social
cover¬

the

amendments

profes¬
in

the

program. The

many varieties and forms
hinder rather than
help the pro¬
motion of industrial
peace.
They

the

the

Employment Service in

Congress

and its

on

increase
not done.

for

health and medical

finding" procedure

technicians ? who

to

adoption

difficulty in reach¬
agreement enhanced.
The
so-called "fact

premium

and
was

has

The President

v

age

refused.

laws

an

a

statesv; This

enacted.

This

during

tized and the

place
sional

several

amendments

U. S.

to become
exaggerated and drama¬

ing

been

called

rela¬

more

procedural

the

Federal

labor

our

by
not

asked

Public

legis¬

supplement unemploy¬
insurance benefits; provided

Security Act to broaden the

par¬

Responsibility
The

•

for

question, in connection with

building materials and,authorized*

occurrence

Government

guaranteed

nets?"

purchase creating

a

market for manufac¬

■

United States. It is the function
this Committee to

of

constantly
review the work
; of '"the Service

most step that can and should be
taken is to improve the
process of

knowledge

The Private

called

program
to

.

do to perfect these
The 'first and fore¬

collective bargaining and to make
it scientific. In the past, and
espe¬
cially in the last firteen years, the
American
Federation of
Labor
has devoted much
time, effort and

ment

public, wel-

'.'-'-/-.•■r'r.

Well, nations can mine coal
turers of prefabricated housing. It
of a strike.
with
bayonets v by forcing coal
The U. S. Conciliation Service- miners to stay at work upon pen¬ brought the series of these and ;
other acts to a climax in destroyis now assisted by a Labor-Man¬ alty of death.
Hitler's Germany
ing effective price contrals.;
agement
Advisory
Committee did it by a rigid, straitjacket on
'
That is the record. It is a record
composed of top representatives all: wages, hours : and
working
of management and labor in the
conditions and by not permitting which shows that the public trust v -

can we

procedures?

to

workers'

or

Conciliation

>

ciliation

*

•

device

That is why

Even

basis of fair accommodation: The
test of an agreement is its
acceptrFor that there is no > sub¬
stitute.
„

the

not

threatened strikes
a"d controversies
involving a total
of 7,712,727 workers.

ance.

What

lation

:'"v'

enceof

14.990

at
all of them is the will of both the
workers and the employers to
reach an agreement and to* find a
■

ties.

toward
V

This

by the

of both

improved operations.
:
The union represents

the past eleven* months
the U. S. Conciliation Service
peiy
formed a truly gigantic and a

automatically

and should be

backed up

agreement

role of outsiders make

ness.

process Would take care of them
As is
it, we have at hand pro¬
cedures
developed; through ex
perience arid tested in time. These
can

trator must be

to workers when
they know that
they can share in the returns from

gressional argument
relations policy the

in

improved,

sponsibility
rare.

To be effective the
accept¬
the decision of the arbi¬

advance

collective bargaining re¬

a

serve to strength
the competitive position of the
a matter of vital
interest

the

advance and auto¬
matically dropped into predeter¬

procedures

people a firm as¬
that Congress is
ready to
discharge its proper (public re¬

surance

of

-

The problems of these
human relations
change with con¬
ditions and change with
growth

stantly

of these
programs in order to give
the American

are

governing the adjustment of the
disputes the area of disputes tends

ciliation.

Labor-management relations are
cases these
compensatory ad- human relations. They are hot
j u'stmen ts co uId have been
mechanical.

unwarranted

;

which in a free
society can
pnly be resolved by the effective
exercise of the private responsi¬
an agreement cannot be
ignored. bility. of the .workers and em¬
If. negotiations break
down, the ployers in each case. ;
first and the most effective
step v Strikes cannot be outlawed. The
for : resolving the dispute is con¬ strikes;
cannot
be
made illegal

most

permitted
price increases.

cratic.
ance

increas¬

an

labor-man

•

policy

which

The large area in which em
ployers and workers fail to reach

disputes.-. Those
strike prevention

a

on

agement cooperation.

"machinery" for the

mined boxes where

relations

ment cooperation is the only true
arid effective form of

new

be

issues

and

fare;

The first and ready
answer, the
easy answer that is always prof
fered whenever the
question is
asked "What shall we
,do. about
strikes?" is to • devise some

out

to

active policy in which the union
works jointly with management

are

f Toward the Industrial Peace

cannot;

more

cooperation, if fully

labor standards

industrial strife.

sorted

done

were

proposals accepted by the unions

dictated, both by these facts and
by; the experience of those who
have been, close to the source of

They

common

an agency
in which workers can
place their
full confidence and be sure that

management .musty find;
peaceful way to resolve. The an¬
swer, it seems to me, is clearly

'

achieved without any substantial
alteration of the price
structure,
However, the Government de¬
cided, unwisely I think, that* a
new wage-price
policy was nec¬
essary.
The application. of1' this

that

a

confined

with * Congress to
recognize the
imperative need for the enactment

must

By union-management
cooperation I mean a procedure
which is tangible and an
objective
which is specific. By it I mean an

en

and

of

If

for

firm is

security, that labor

that

tled by direct negotiation or
con¬
ciliation. To be
effective, arbitra¬
tion must be,
voluntary and demo¬

together

standards which

the cost of living and: to the fu4

urge

work

agement ■; and the workers in the
establishment.
Improved • effi
ciency
and
raised
production

economic' question,
the
question of wages in relation to

who

fective method for the settlement
of disputes which
cannot be set¬

lationship for the purpose of pro¬
moting the interest of both man¬

single

adjustment

resentatives, not to negotiate is¬
sues in
dispute, but to plan and

under

questions of union recog¬
union security but the

and different

Rights of workers or
of employers cannot be
arbitrated.
Voluntary arbitration is an ef¬

be

Voluntary arbitration

,

arbitrable.

ing scale.

or

ture economic

tion.

willing to make col¬
lective bargaining the prime in¬
strumentality of industrial peace.
How
often is - top management
willing to meet with union rep¬

agement

Consider

union

man

is

agement

can provide the means
methods for solving
basic
human problems in labor-man¬

f consumer - prices are taken into
machinery be deyjsed along new
account; thedecline is even great¬ .lines are the
ones" who are never
er, over '15%.
In view of
this, prepared to explain conclusively
labor could hot be
expected to or even
plausibly just how this
accept the reduced take-home
new
pay
machinery would prove to
without insisting on
be
compensatory
effective.
: adjustments
in hourly rates.
In

:

»:..

adjustment of differences • direct¬
ly by the parties or by concilia¬

ad-

accepted,

volved in strikes were concerned
with the questions of union or
ganization. • This presents a con¬
clusive proof of the fact that it is

fected by the elimination
of over-:
time, a forced shift from
a

'4

and

Then compare this with the
fact that in 1945 less than 17 Out
of every hundred workers in¬

to realize that in

to peace pro-'
workers were af¬

V

the

to

these

cannot be made unless

vances

management

tion.

only

the change from

in

But

generally, disputes would di¬
minish.
It is the, belief of the American
Federation of Labor that union-

setting

self-organi¬

organization.

issues related

by

26,5% of all work
stoppages. In 1945, 42.4% of. all
work stoppages
were due to dis¬
putes over wages.

;-v

undermine

j and management.

goal?

light of the fact that
in 1939, prior to the
war, 54 out
of every hundred workers were
involved in strikes caused by the

1939, the number
pages duo to wage
disputes repre¬
sented

deliberately

are

union

this

war, in
of work stop¬

!

bargaining
Signs

Recently proposed
legislation
sought to eliminate disputes
by dealing chiefly with questions

the

regulation.Before

collective

has

major

imposed

has

year

zation among their workers.

were

major. and
of industrial

were

past

causes

fair agreement.

a

tunity to

living since the time rigid ceil¬

ings

genuine

ployers

The wage is¬

cause

the

major

out to frustrate collective
bargain¬
ing and to seize the first oppor¬

every

one

the

have multiplied on the industrial
horizon since V J Day that em¬

the

strife because of
the

tween

of

strike, three

because

of

in

and reach

tion;, in
that all these
proposals have no
relation to the
major predominant
Question of labor
disputes in the
transition from war to
peace.
Consider the record.
In "the

first

third

strikes

in

speeding transition

1

an

increasing refusal on the
part of the employers to engage

of

purpose

substitute for

a

been the

industrial

and

as

earnest effort by labor and man¬
agement to compose their differ¬
ences through direct
negotiation.
The

labor-management

peace

.'V*.. .1,7.

y„

THE COMMERCIAL & FINANCIAL CHRONICLE

weakening

bargaining

mining unions.
and devices have

lation

■

137,

be

can

v

164

•

and to make recommendations for
the improvement of: the Service
in

the

light of direct experience
labor and management. I
urge Congress to give a careful
study to this effective instrument
of peaceful adjustment which is
serving the nation in the promo¬
of both

tion

of

industrial

peace

without

resorting to compulsion.
'

What
tions

of

in

fails?

the

which

In

remaining situa¬
conciliation, too,

many "sections

of

a

part

tested

of

accepted and
Provision for

procedures.
arbitrators
and
for

arbitration
been proved to be an
and efficient means of

boards has

effective

resolving differences and formulatmg oecisions on the basis of
facts without partiality.

Voluntary arbitration
become

a

must

not

substitute for collective

bargaining.

vested in Congress by the. people
to safeguard their economic fi*-

will

ture

was

It is

a

It must not supersede

start this

country along the
same path.
Even if these restric¬
tions are relatively mild, they can
only succeed by leading in turn
to
more, stringent
restrictions.
They do not solve the problems
of

reduced;.payinsecurity,

fear

which

underline

and

manifesta¬

tions of worker discontent in this

country. Only a program which
attacks, these causes will succeed
without

endangering

the

entire

democratic structure of society.
The

our

industry and trade voluntary sub
mission by both parties of issues
in dispute to an
impartial arbi
trator, mutually agreed upon, has
become

workers to leave their jobs." Re¬
strictions on the right to strike

enact

new

legislation
with

the

and

is

When

Congress

sharp contrast
Congress to

of

causes

the

war

of labor

un¬

to

came

discharged.
record which explains why

; ;

the workers of America in many
sections of
industry and trade

;v"

were

lic

compelled to resort to

and

open

an

pub¬
against the

protest

curtailment of their

As

we

lative

face the future, the legis-'
not

lie

in

ment of labor laws.

the

enact-

en^

actment of legislation which labor
deemed
absolutely
essential
to
meet

the human

needs

version.

In

gress

Sept. 6, 1945,

on

his

the termination
in

his

1946,

of

Con¬

soon

after

of hostilities

annual message on

President

recon¬

to

message

Truman

and

v

The legislaM

nomic welfare
ers,

of workers, farmand businessmen alike.
:

.It is my hope that, before it is
too

urgent

•

^

tive remedy lies in the eauity of
laws enacted to safeguard the eca-\

meet the human needs of postwar

the

-

against industrial

remedy

Labor

for

;

income,: .both5.

end, the American Federation of
called

?;

a

directly through the loss of earn¬
ings, and through the Governmentencouraged rise in prices.^,* \.s

unrest does

to

restrictive C.labor

in

failure

eliminate the
rest.*

of

eagerness

•

not equitably

late,

transition

essential

measures

can

confident

still

that

be

if

enacted.

to
I

this

public
duty is carried out, labor and
management will cooperate to the
am

limit in discharging a full meas¬
of their private responsibility

ure

Jan. 14, in the public interest of the peopleaded pie of the United States.

:-v
1

138

THE COMMERCIAL & FINANCIAL CHRONICLE

kicked

From Washington
Ahead Of The News

but the atomic bomb

over

demonstration

Government

(Continued from first page)
completely crossed up, not only
Barkley but Speaker Sam Rayburn as well. They had been given
distinctly to understand he would
sign the sort of bill that was fi¬
nally worked out. This, was the
reason Barkley and Taft worked

faithfully

so

ference

to

what

in

remove

con¬

considered

were

to

Warns Banks

Against
Speculative Leans en

ington
his

that he would sign it.

was

happened

then

There

mind?

to

change

was

no

one

his close counsellors urg¬
ing this action.
It was not Ches¬
among

ter Bowles'

blast, because Truman
dislikes the bumptious

frankly
Bowles.
that

It is not believed either

it

which
the

the

was

just

was

CIO

which he

action

pressure,

strong against

as

took

struction, a-special dispatch from
Washington / to the New York

Government Bonds

in the

of

turities

months.

Loan

this character
the

to

not

"Times"

arrangements

of

State

and

bank

short term

on a

amortization basis

}

t

The

best

is that Truman
got it into his head that there was
an
impression 5 abroad
that he
didn't

guess

have

the bill.

the

to

courage

veto

He is

by way these days
of showing that he has a tremen¬
dous strength of character.
Cer¬
tainly there was more nonsense

politically helpful is

difficult to understand.

He is not

running

this

for

anything

vember. It is the individual

No¬

mem¬

bers of Congress that are running
and the majority of them, of his
own

party, were

the other side
of the question.# His action was
on

repudiation of them.

a

Assuming
it was the CIO he was catering
to, does any one think that that
will

crowd

throw

strength behind

its 5; so-called

Congressional
candidate who voted for the bill,
because

a

Truman

showed

great
"strength" and vetoed it?' If the
dire predictions about the passage

of the bill

stands

true, then the issue

are

against

member

any

voted for it.

.

who
1

,

'

One thing is sure and certain:
No
candidate
about
whom
we
know

intends

Truman's

on

usual.
the

to

seek

reelection

This

name.

Usually the

is>

members

party insist that
is essential because

.the President needs them.

those

we've

As

we

the

ago,

All of

talked to would just

not

soon

mentioned
;

of

incumbent

their election

as

un¬

have Truman's

in

the

reported
only

name

campaign.

::

several weeks

substantial

diate effects of the bill

imme¬
it went

as

During the Victory Loan Drive,
a
large amount of
long-term
bonds was purchased with the aid

of bank loans. It has been report¬
ed that many such loans

been

repaid

that

and

come

current

in¬

credit

has

bank

for

used

been

of

out

have not

ties

for

vision

amortization

for

margins

and

interest

which emphasize high returns on
small amounts of the borrower's
own

funds

required for relatively

large transactions. The
eral

same gen¬

considerations which led to

efforts

to

discourage

speculative

for that purpose.

It

as

loans made

chase

of

to

government

run

months

before

industry

its

prove

stall

case

and the OP A could

indefinitely,

intended to
It

was no

do.'

which it
.,

fully
v

,

fault of the radio

mentators, and to

com¬

lesser extent

a

the

during

for

more

They sought in every way at their
■command on Sunday night to get
prices lifted and to bring about
panic buying. And early Monday
they were out searching every lit¬
tle nook and cranny of the coun¬

try to find

landlord

a

or

a

chant who had boosted his

by

so

less

of

dent

much
how

was

VI told

as

dime.

Regard¬
inci¬

every

magnified in

you

an

air of

so," and "Here

comes

the inflation.".
on

a

isolated,

It is

commentary
something that the most pro¬
a

nounced increase of that

the

application of

a
.

Irrespective of what
the impression

day

was

tax

new

New York.

and

mer¬

wares

:

in

!

comes now,

is that there

is going to

than six months. You

will realize, of course, that noth¬

ing will be accomplished if
bank

makes

ment

securities to enable

National

Bank

of

New York.

Gordon

S.

Rentschler,

Chair¬

i

Bank of America, San Francisco.
Fowler McCormick, Chairman

of

the

International

Harvester

Company.
Paul G. Hoffman, President of
the Studebaker Corporation.

Irving S. Olds, Chairman of the
States Steel Corporation.

United
A.

W.

Robertson, Chairman of
Westinghouse Electric Cor¬

the

poration.

Smith, President of the
National Bank of

St.

Louis.

sioners only two weeks ago, pol¬
icyholders; were warned in a re¬

New Britain, Conn.
Champ Carry, President of the

pany,

Pullman-Standard

Car • Manufac¬

turing Company.
Walter J. Cummings, Chairman
the

Continental

Illinois

of

foreign

our

investments

and

nels
'

1

"

commerce

—BM—

1

•'
■

'

1

j-r' >/J

on

one

govern¬
a

cus¬

U. S. Contributions

To World

Institute, Inc.,

of

industrial
In

insurance

an organ¬
officers of

thorough condemnation of

a

the so-called "model" bills the

re¬

port of the Committee on Legis¬
lation described as "a matter of
the

gravest

American

to

concern

policyholder and

erty-owner"

competition
companies)

every

prop¬

extinction

"the

of

(between insurance
which
these
bills

threaten." It declared:-"No Amer¬
ican business

has

yielded the
right to direct its own affairs to
a degree as insurance is now
offering to do, and other branches
ever

such

of business have

to be dis¬

cause

turbed

by the example insurance
is setting."
The full text of the Committee's
report follows:
"
The Legislative Committee has
carefully reviewed the "model"
Regulation Bills drawn by

the

"All-Industry
Committee"
representing the -y insurance com¬
panies and approved on June 13
by the National Association of
Insurance Commissioners at their

meeting in Portland. It is

our

conviction

bills

that

if

these

firm
are

'

«

-

-

*

June 25 of

mix¬

audience
some

in

Amer¬

ican contributions.

ALLAN SPROUL,

-

on

a

President.!#:

a

wireless

Reporting this
message on that date

to the New York "Times" went on

to

Nal'l City Class of
1916 Holds Reunion

say";"#"#"##
Speaking at

meeting of the

a

judge the situation correctly, the
statutes

Harriman

authority over

and

There

said

is

Casualty

carried

—•

no

•

*

•

necessity, particu¬

to

such

an

extreme

that

management

of

industry as
fundamentally important as insur¬
ance, it becomes a matter of the
gravest concern~to every Ameri¬
can'policyholder and
property
be

an

Thirty members of The National
City Bank of New York's College
Training Class of 1916 held their
30th Anniversary Reunion at the
Sleepy Hollow Country Club on

seventh of the world's pop¬

had furnished 70%
of
UNRRA supplies.
He said that by
July 1 the United States would
have shipped more than 393,000,-

existing forms ^f insurance will
be severely restricted, if not vir¬
tually
impossible; # competition
among
companies of the same

June 22. The Class, originally con¬
sisting of 54 men fresh from col¬

twice

leges, also gathered for

a reunion
luncheon the previous day (June

21) in the Officers' Dining Room
of the Bank.

The

record

of

the

Training Class of 1916 has been a
successful one.
Today twelve are
officers
them,

of

National

City, six of
high ranking capacities,

four

in
are

Presidents and four

Vice-Presidents
for

other

of

are

themselves

executive positions.

are

banks,

either in busi¬
or

hold

top

the United

than

a

States, with less

ulation,

000

bushels

of

Britain's

wheat

this

year,

total

consumption
during the same period and more
than 90% of the original quota set

for the United States.;
He stressed that the world had
come

to

expect prodigious things

of the United States,

which might
explain why American shortcom¬
ing attracted more attention than
those

of

other

countries.

"We have the habit in

America,"

he continued, "of setting targets a
little higher than it looks possible
to reach and then

reaching them."

bills

threaten.

;

of

free

as

,

seems

release from State

a

regulation

and

immediately formulate plans
to take proper advantage of* its
freedom.
Instead, when Public
Law 15

was being
framed, the .in¬
dustry rushed headlong in the di¬
rection of stricter regulation. Here

a r chance
to overhaul the
Whole philosophy of insurance #
regulation, to review experience,

was

to discard the

bad, revitalize the

good, introduce the new. 4Jnfor«j
tunately, there is no evidence that
anything so logical was even con¬
sidered, and the opportunity inajr
never come again.
.
* j
■.

No American business

iraa

ever

yielded the right to direct its own
affairs to such a degree as insur¬
ance Is now offering to do; and ?
other branches of

ample
other

business have

to be disturbed;

cause

by the ex-j
insurance is setting. No
industry has been so loud

insurance in its condemnation.

as

Federal and State

both

of

ernment in business
ent in its vocal

free

championshipi of

enterprise, and at the

time

ineffective

so

panding

gov¬

persist¬

or so

same

against

Government

ex¬

control-

Much of existing regulation has
been invited

by the industry ? it¬

self, but acceptance of the

pro¬

posed Rating: Bills constitute the
final-act of acquiesence, of volun¬

tary

submission

short of State

to

everything

ownership/

We refuse to conclude that the

American Insurance
not possess

the talent and

such

Industry does

the will, the courage#;

leadership to avoid

fate.

a

W. S. Haliaetaii Heads

National Oil

Council!!

Immediately following his.
pointment

June 24

on

ap¬

Chair¬

as

of the newly formed National

man

Petroleum Council, Walter S. Hal-

lanan, President of the Plymouth'
Oil

Co., declared that there should

be "no

infringement by the Gov¬

ernment

upon

the

principles ; of

complete independence of the

pe¬

troleum

industry" in conduct; of
its business. ■
/
Jtr
;
<
He! stated that! the creation," of

no

the

type will tend to disappear, and
participating companies stand to
gain
decided
advantages
over
non-participating companies. The
damage which the interests of the
insurance-buying public will thus
suffer under the proposed bills
cannot be overestimated.
It may be, as

the Sub-Commit¬

the

Oil

Interior

with

Congress will tolerate "co-opera¬
tive action (among underwriters),

of

authority

a con¬

to #deal

!# (The organization of this Coun¬
cil

mentioned

was

Of June

in

our

issue

27, page 3546.)

Air Mail Outside US
>, Postmaster Albert Goldman an¬

weighing

ounces

patch

effective

that,

nounces

6

report endorsing the Bills,
debate preceding Public

Division in thet

thepetroleum ! industry's

in

Law 15 leaves the impression the

Gas

problem is a commendable step."

articles

that the

and

Departmeht^'with

centration

tee of the Commissioners contends
its

these

contrary, it is self-evident

competition
industry. #strange that the insur¬
ance
industry did not recognize
the Supreme Court's 1944 decision
It

Under such control there

genuinely free market;
pioneering of new coverages
and the broadening or refining of

that

competi-1

within the insurance

v

it amounts to practically complete

can

On the

insurance

larly at this point in our economic
history, to emphasize the evils of
excessive Government regulation.
When,
therefore,
regulation
is

owner.

Mr.

of

.

Fire

in

London,

now-proposed will com¬

plete the proem's, for, taken in
conjunction vc$th- existing laws,
they will clothe, the States with

American Chamber of Commerce

which

counte¬

can

extinction

advantages

concerns.,

companies.

London

'

Britain; reminded

British-American

the

the Congress intended to guaran¬
tee to the American public ;the

ization

of

ernment securities.,

sador to

of Justice

partment
nance

tion

every
important detai^pf the operations

Chiding critics who say that the
United States is not doing its part
to aid world recovery, W. Averell

State level.

a

but it is absurd to suppose;
either Congress or the De¬

port issued oh June 271 by the
Committee on Legislation of Risk,

full and final

Recovery

on

"

Research

Na¬

private chan¬

possible."

soon as

as
'

to

business

surance

and approved by the National
Association of Insurance Commis¬

Rate

Herbert H. Pease, President of
the New Britain Machine Com¬

of

Committee" of the insurance busi¬

ness

,

Tom K.

Boatmen's

ed

ness




Chase

originally made to purchase gov¬

reactionaries, and
the Liberals.

the

Harriman, United States Ambas¬

and the others

bad one for
Not only was OPA

loan

a

be considerable jock¬
eying in Congress to see just what
does happen under no bill at all,
it was a great week-end for: us
a

those

tomer to comply with the request
of another bank to pay off a loan

-

the newspapers, that runaway in¬
flation
did
not
occur
Monday.

of

names

securities

Chester

be

of

facilitate pur¬

of

would

private
are
the

return

>

timely to ask your co¬
operation to this end, particularly
seems

to

"model" rate bill proposals, approved by the National Association
of Insurance Commissioners/ Complains inroads by government are

enacted by the several States, the
subscriptions to government se¬ tional Bank and Trust
Company, management of the Fire-Marine
curities
during
the
war
loan Chicago.
and
Casualty-Surety
insurance*
drives clearly apply to this sort of
## Edward Hopkinson, Jr.* partner business, for every practical pur¬
loan.
in Drexel & Co., Philadelphia,
*
pose, will have passed into the
; Borrowing from banks creates
President Truman said that he hands of Government.
an
addition
to
the
country's had
appointed
the
Committee
State Codes have, for years, in¬
money supply to the same extent "because our foreign trade, ex¬ cluded laws
regulating the form¬
as
direct purchases of securities port and
import, must in the long ing and licensing of insurance
by banks.
The existing unprece¬ run be privately. handled and companies; capital and
surplus re¬
dented ; supply of deposits
and privately financed if it is to serve quirements; premium and loss re¬
well
this
currency, in the face of an inade¬
country and world econ¬ serves; the investttierit of assets!
quate supply of goods and serv¬ omy." He added, "It is true that maximum
single-risk exposure;
ices, is a dangerous inflationary for the immediate present Gov¬ reinsurance; accounting and re¬
potential. Therefore, every effort ernmental help is needed in order ports; licensing of producers; and
should be made to reverse the to
get our foreign • trade under so on. These controls have been
wartime trend of increased bor¬ way. But I am anxious that there set up and extended so
insidiously
rowing for the purpose of pur¬ shall be the fullest cooperation that many,
both_ in arid outside
chasing and carrying government between the Governmental agen¬ of insurance,
a|T prone to regard
securities and to reduce ;as much cies
and# private industry and further regulation as a normal and
as possible the use of bank credit
finance. Our common aim is the inevitable
deVSIbpment.
If
we

Victory Loan Drive,
which are; still unpaid, have now

would get the price relief afford¬
ed.
Each industry would have to

.

with

and

of

rates

pro¬

President, after all of the
hullabaloo, would be the riddance
many

■

without

customers

the

It

and
invest¬
channels". Fol¬

to

man of the National City Bank of
within periods not exceeding six?
New York.
months."
L. M. Giannini, President of the

to

Bowles.

commerce

early

Winthrop W. Aldrich, Chairman

or

speculative carry¬
and misinformation
in his veto ing of government securities. Re¬
ports
have
been
received also of
message and radio address than
has appeared in any of his State the activities of money brokers
and
others seeking
to arrange
papers, and that is saying a lot.
Just how on earth he expects his bank loans on government securi¬
action to be

foreign

fully repayable
.

railroad strike.

pur¬

who will make up the group:
As given in the "Times" advices.

super¬

visory authorities in November
1942, which said that "such loans
will not be subject to criticism
but should be

stated

is to make
"return .of our

an

lowing

joint statement issued by the

National

The

the " survey

possible
ments

recognized in

were

stated.

of

pose

six

exceed

..

committee, com¬
prising six bankers and six in¬
destroying competition and free enterprise in the industry.
dustrialists,
was
'appointed ' on
"The damage which the interests of the insurance-buying public ;
June 26 by President Truman to
will suffer cannot be overestimated" if State Legislatures enact
the !
survey foreign trade potential and
Fire and Casualty rate regulatory »
—-——»
make
recommendations
on
the
|
bills drafted by the "All-Industry
including
price-fixing, in the in-f
financing of international recon¬

all; maybe we won't have
"get along" with the world.

(Continued from first page)

The general impression in Wash¬

}# Legislative Committee of Risk Research Institute, Inc. objects

A twelve-man

after
to

be the objectionable features.

What

to##!##
Survey World Tradel!

to the scientists

over

Condemns Insurance Regulation
Jills"##

Board Named

to have been

seems

relative

flop.
Maybe it won't
be necessary for us to turn the

a

Thursday, July 4, 1946

may

up

at

once,

to 4 pounds

be accepted for dis¬

by-air! to

Australia,

Fiji

Islands, New Caledonia, New Zea¬
land and Siam.

•

Volume 164

Number 4504

r

THE COMMERCIAL & FINANCIAL CHRONICLE

Elecfric Output for Week- Ended June 29,1946
5,1% Below That for Same Week

Year Ago

a

i

ready taken such action on a few
steel items, and has insisted that
controls will be dropped on other
products

The Edison Electric
Institute, in its current weekly report, esti% mated that the
production of
electricity by the electric light and
power industry of the United
States for the week ended June
29, 1946,
,

conditions

as

On the other hand if

two, the same
week, against

control board is set
up under the
auspices of Congress, controls may

in the previous

in

the

most sections of the
country, total
retail volume this week was
lifted

com¬

parable week of 1945.

warrant.

slightly above that of the preced¬
ing week and markedly above that
of the
corresponding week a year

Food Price Index Unchanged at

special de¬

a

as

none

Peak

Level—Following the sharp
upturn of the previous week, the
Dun

ago states Dun &

in its weekly

&

Bradstreet, Inc.,

"Review of

Trade."
Bradstreet wholesale food
be removed more
""f was'4,132,680,000 kwh., which
rapidly than if
compares with 4,353,351,000 kwh. in the
price index for June 25 remained Tourist trade got under way and
the sole power to make
corresponding week a year ago, and
decisions
4,129,163,000 kwh. in the week
unchanged at the 25-year peak of helped to augment retail volume.
rested with OPA.
•]Ji ended June 22, 1946. The output for the week ended
June 29, 1946,
Gains over a year ago in dollar
The American Iron and Steel $4.35. This represented a gain of
| T '"was 5.1% below that of the same week in 1945.
\
,

'f**'%■*■'}■/.>

\)

.

■

;•«

v'"v"V^:''

'V*Vvvii-J>*/*•'••

Institute announced

on
Monday of
operating rate of
steel hompanies
having 94% of the
steel capacity of the
industry will
be 87.2% of
capacity for the week

*'♦'•?:*Ar*--'■ U

PERCENTAGE DECREASE UNDER SAME WEEK LAST

YEARV%>;i>V this

-Week Ended-

Major Geographical Divisions—
England-

June 29

New

0.4

——

Middle Atlantic

Central

June 22

_:

Industrial

:/'•

West

Central
Southern States—

'V :(

2.1

%

6.2

'

Rocky Mountain
Pacific Coast

f

-

.

5.1

/• '

DATA FOR RECENT WEEKS

1940

4,397,529
4,401,716

6-.,—3,087,673

4,321,794

4,014,652

4,332,400
4,411,325

4,329,478

3,987,145
3,976,750

April 27

3,910,760

4,415,889
4,397,330
4,302,381

3,939,281

4,377,221

May 25—;
U
••.
3,941,865
f June 1—3,741,256

4,329,605

May
May 11May 18

j

4,011,670
■

v
■

June

8

*.

June 29—j

r~"

•

%

vv,

•

•

<

4,030,058
4,129,163
4,132,680

4.4

from

4.0

7.1

:|5.3

/

-9.3

.

8.7

-

S

-7.8

■

7.7

-

-

9.6

-

f

9.9

-

■

4,361,094
4,307,498

7.3

-

-8.8

; -

9.1

-

-10.0
v

4,348,413
4,358,277

.

-9.0

■

-11.0

"•

4,353,351

-

-

month

.

1,537,747
1,514,553
1,480,208
1,465,076
1,480,738
1,469,810
1,454,505
1,429,032
1,436,928

4,344,188
4.336.247
4,233,756
4,238,375

1/435,731

4,245,678
4,291,750
4,144,490

1,425,151
1,381,452
1,435,471

4,264,600

1,441,532

4,287,251
4,325,417

1,456,961

1,702,501
1,723,428

4,327,359

1,341,730

1,592,075

National Fertilizer Association

Commodity Price

Higher For Eighth Consecutive Week

For the eighth consecutive week
the wholesale

commodity trice
by The National Fertilizer Association
and' made
July 1, advanced to a new high level when it

index compiled

public

on

1,
ago,

unchanged
55.2% one

advanced during the
week, while
potatoes declined.
The index represents

changed from a week ago. It was
extremely difficult to find meat,
butter, sugar, bread, flour and

the sum
total of the price
per pound of 31
foods in general use.

and

ago

88.1%

one

canned

some

goods.

The

amount

/ Wholesale

year

'

1,440,541

f

Index

July
week

volume of foodstuffs were less ex¬
tensive last week than in
previous
weeks with over-all volume un¬

<

7.3

5.1

-

1932

1,538,452

9.4

5.3

-

*1944

4,464,686
4,425,630
4.400.246
4,409,159
4,408,703

one

5.8% over the $4.11 recorded at
this time last year.
Eggs and lambs

of fish and
poultry in the stores
Commodity Price In¬ was
0.5
unchanged
from
ago.
previous
dex—The daily wholesale com¬
//•
%-7.5
weeks
with
volume of sales high.
This week's operating rate is modity
price index, compiled by
Fresh fruits and vegetables
were
equivalent to 1,536,800 tons of Dun & Bradstreet,
9.4
Inc., remained abundant and
sold well.
steel ingots arid castings the same at a peak level
i.O/Z%:/:l /■'■;/
throughout the
as one week
Inventories of both men's and
ago, 972,800 tons one past week* The figure rose to
month ago and 1,613,700 tons one 199.15 on June
women's apparel were
somewhat
25, comparing with
year ago.
198.33 a week
larger the past week than previ¬
earlier, and with
1929
177.48
ously;
the
dollar
on the
volume continued
Electrical Production—r-The Edi¬
corresponding date
1,702,570
upward.
last year.
son Electric Institute
Gloves,
shoes,
beach
1,687,229
reports that
wear,
summer
the
1,683,262
dresses, jewelry
output of electricity increased
Activity in grain futures mar¬ and
1,679,589 to
lingerie
sold
quickly. The de¬
4,129,163,000 kwh. in the week kets was practically non-existent
1,633,291
mand for
millinery and handbags
ended June 22, 1946, from
Confined wholly to
1,696,543
4,030,- last week.
women's
1,709,331
058,000 kwh. in the preceding oats, sales on the Chicago Board dropped // off > slightly;
1,699,822 week.
Output forvthe: week end* of Trade fell to the smallest: On hosiery and lingerie were not
1,688,434
easily found.
As more summer
1,698,942 ing June 22, 1946, Was 5.3% be* record, aggregating 2,584,000 bush¬
materials have become available
1,704,426 low that for
the corresponding els. This contrasted with
20,247,1,705,460 weekly
recently, stocks of men's light¬
000 bushels in the
period one year ago,
previous week
1,615,085
weight suits have risen.
Better
Consolidated Edison Co. of New and 217,192,000 in the
1,689,925
correspond¬
grade
straw hats moved well.;
1,699,227 York
reports system
output of ing week last year. Transactions

/;/^//:;'|

//'/:

the

beginning

12.5

- l.o

§7.2,

-11.1

4,203,502 %
4,327,028

3.920.444

,

jvJune 15^.£—
; June 22
^
*5

1":;

7.2

-10.6

•

4,446,136

3,987,877
4,017,310
3,992,283

—

April 20__

t;

:•'/"/

3.7

9.2/: -0
'

§4.9

under 1945

4,472,110

•

March 23.,.——

April
April

1945

J,
4,000,119
9—3,052,539

2^

; March 30
•

•%•/-

% "Change

Week Ended—

ft March 16

-

6.0

(Thousands of Kilowatt-Hours)

""

'March

3.9

0.3

14.1

{Increase,

"

§0.1

§2,0

7.6

.

Total United States.

v! March

/

-

/>%;'

~ June 8

v

8.0

§1.8

;

1.2

/

i;{lJ5^;l!v

June 15

week

reached 151.7
i in the week ended June
29, 1946, frpm 150.8 in the
preceding week>
t The index is now 7.1% higher than it
was a year ago.
A month ago
the index stood at
148,0, and a year ago at 141.6, all based
on, the
/% 1935*1939 average as 100. The Association's
report went on to say:
;
Six of the 11 composite groups of the
index advance<$
during
% the latest week and none declined.
The
,

-

.

176,800,000 kwh.
ed

June

in the week end¬

in

deferred

oats

deliveries

Household
items
attracted
a
considerable amount of consumer
attention.
Household and

were

23,

1946, compared with scattered and in small lots With
171,500,000 kwh. for the corre¬ prices generally at ceilings. With
sponding week of 1945, or an in¬ farmers holding their grains in
crease of 3.1%. Local
distribution anticipation of higher prices; cash
Of electricity amounted
to; 171,- markets recorded few if any coun*
100,000 kwh. compared with 169,- try offerings, with prices
pressing
800,000 kwh. for the correspond¬ tightly against ceilings. A special
ing week of last year, an increase mid-month report on the wheat
of 0.8%.
crop by the Department of Agri¬
Railroad Freight

loadings

of

Loading—Car

revenue

culture

indicated

"freight /for yield of

a

garden

furniture

were

eagerly

sought. /:

gains over a year ago
noted in the volume of auto¬

were

motive

accessories.
There
noticeable increase in the

of luggage last week.

A

was

a

buying
...

.

Consumer

v.

prospective

1,033,000,000 bushels.

/

Sizable

\

%

purchasing of
tains/draperies and towels

cur¬

creased

with

during

the

week

in¬

the week ended June
22, 1946, to¬

slight improvement in production

taled 858,437
cars, the Association
of American Railroads
announced.

of flour was reported
general supply situation week. Toileteries and silverware
continued very tight. Lard stocks moved in moderate
quantity.
::
showed
no
-betterment
as
hog
Retail .volume for the
country
weights and receipts continued for the week ended

This

was

decrease

a

of

9,481

cars
(or 1.1%) below the pre¬
foods index;
advancing to
high peak, reflected higher prices for
bread which more than ceding week and 18,266 cars, or
offset lower prices for oranges and
2.1%
below
the
potatoes.
The farm products
corresponding
group advanced to a new high* level because
week for
1945.
of the 6% rise in Cotton
Compared with
Ibices during the week which much more
than offset the decline in the similar period of 1944, a de¬
I the livestock
crease of
subgroup caused by lower quotations for choice and
21,874 cars, or 2.5% > is
good
! cattle, lambs and
shown.
sheep. The fuels index rose 1.2% to a new
high level
t-ecause of higher prices for
anthracite coal.
The textiles
Paper and Paperboard Produc¬
group was
/ again higher.
The farm machinery
group registered a sharp increase. tion— Paper production in the
The miscellaneous commodities
United States for the week
group advanced with higher
ending
prices
.

a new

.

and

many reports of a higher volume
of rug buying than in the
previous

sales

but the

last

much below normal.

estimated to

was

/After

hesitation

some

-

;

dealings, cotton prices

in

early 28%

above

week

advanced

a

the

year

week

to

reach

land

high ground
Demand in spot

new

24

corresponding
Regional

ago.

steadily in the latter part of the centage ihcreases

Thursday

be from

-

;

per¬

New Eng¬

were:

17 to

21, East 28 to 32, Mid¬
to 28, Northwest 22
markets was strong with inquiries to 26, South 20 to 24, Southwest
numerous - but
23
traders were in*
to 27, and Pacific Coast 25 to
for cigarettes.
June 22 was 106.2% of mill ca¬ clined to be cautious pending clar¬ 29.
,.,t
•
During the week 5 price series in the index
ification of existing price uncer¬
advanced and 6 de- pacity, as against 104% for the
Gains in the dollar
j clined^. in the preceding week 18 advanced and
tainties. % Foreign
4
demand /re¬ sales in most wholesale lines the
declined; in the preceding week and 90.4% in the
second preceding week 7 advanced and 1
like 1945 week, according to the mained strong and export volume past week resulted in
declined.
a
modest
WEEKLY WHOLESALE COMMODrry
American Paper & Pulp Associa¬ for the first nine months of "the increase above the
PRICE INDEX
previous week's
season totaled more than twice
tion. Paperboard
Compiled by The National Fertilizer
total
wholesale volume. The vol¬
output for the
Association
that of a year previous.
1935-1939—100*
current / week Was
Crop re¬ ume of wholesale trade last week
97% against
Latest Preceding Month
Each Group
Year
98% in the preceding week and ports were more favorable with continued to
surpass that of the
Week
Week
Ago
Bears to the
fair and warmer weather
Ago
96 % for the
Group
prevail¬ corresponding week a year
Jun. 29,
corresponding week
Jun. 22,
Jun. 1,
ago.
Jun. 30,
Total Index
ing over a large part of the belt.
a year ago.
1946
1946
1946
1945
Reports
indicated
that inventories
v
«
■ •
Foods.
2S.3
for

22

years.

dle

West

23

■

•

.

.

.

,

Fats and Oils

Cottonseed Qil
Farm Products

"33.0

II Cotton......
Grains

150.1

146.8

143.6

152.7

152.7

147.4

f 145.2

163.1 m

163.1

163.1

163.1

183.5

181.9

179.4

167.7

293.6

1277.0

164.7

214.0

190.3

Livestock_____-

Fuels
Tex tlles-^^—..

-

Mpf.«Ua

-

192.1

,

164.6

162.9

i:-', 161.8

131.4

1133.3

140.3 '

139.4

138.6

133.7

172.3

169.7

167.1

157.0

123.5

117/9

168.3

167.8

><153.8

127.5

127.5

125.9

-

108.9

168.3

Fertilizer materials—

118.9 I

118.9

118.2

118.3

119.8

119.8

119.8

.119.9

105.8

105.8

104.8

Fertilizers—-—-.

*Indexes

-

164.6

Building materials——
Chemicals and drugs—

Farm
100.0

190.3
135.8

•

123.5

j

.

163.6 :
137.4

Miscellaneous commodities—
•

150.6

——

machinery..—,.—.,.—--^.

•'

109.0

— Com¬
mercial and industrial failures in
the week ending June 27

dropped

down sharply after last week's
up¬
swing but were as numerous as in
the corresponding week of 1945.

Dun &

Bradstreet, Inc., reports 14

concerns failing as compared with
25 in the previous week and 14 a

year ago.

/Large: and small failures ac¬
counted for an equal number of
week's failures.
This repre¬

the

All groups combined

on 1926-1928 base were:

-

127.5

Business Failures Low

151.7

Jiine

29|

150.8

148.0

141.6

1946, 118.2; June 22, 1946, 117.5,

and

sented
ures

a

downtrend in large fail¬
losses
of
$5,000 or

with

more; seven concerns failed in
this size group,- less than half as
many

The State of Trade
\

/

(Continued from

situation when and if this action is
It
is
possible, however,
■that the present delicate balance

taken.

page

there

132)

"The Iron Age"
points out.

Gov¬

as

in

were

the

last

week

when

16 and also lower than

the nine reported in the
previous
year. Small concerns
failing with

liabilities

,under

.$5,000

showed
they were

ernment
subsidized
purchases only slight variation;
abroad starting with the
war have
down two from a week
ago but
to obscure the
significant exceeded by two the number oc¬
mapd may result in the tempo-, rise in world
prices of these metals
curring
in
the
same week of 1945.
rary shortage of coke for blast which is due
only in part to the
This week's failures were about
furhace fuel. Over the long
run, runaway inflation present in most
evenly divided between retailing,
however, /the outlook ' for //in¬ -foreign mining areas.
manufacturing and .construction,
creased
pig
iron production is
With chances certain that
OPA's while wholesaling and commercial
promising,
the ..above 'trade life will be
extended, controls service did not have any failures.
/authority adds.
over prices of iron
and steel prod¬ In all
industry and trade groups
Ip the nonferrous field con¬ ucts should continue as.
long as except construction, failures were
sumers of non-ferrous
metals are the supply falls far short of de¬
less numerous than a week
ago;
gradually recognizing the fact that mand.
However, it is expected Holding steady at
five, construc¬
shortages of lead, tin, copper, zinc that from time to time
individual tion failures were also
and silver are worldwide in
responsible
scope steel products will be decontrolled
for the only marked change from
and likely to continue
indefinitely when supply and demand are in the 1945
record—an
increase
of
or
at least until
exploration re¬ balance or when there is no
ques¬
three./
.; :%/>
.%%,/./
/
veals > significant
new
deposits, tion of a shortage. OPA has al¬
Canadian
failures
numbered

between coal supplies and coal de-




served

.

The official report of the Census
Bureau placed consumption of the

staple during May at 871,559 bales,
as compared with
813,732 in April,
and. 830,414 in May last
year. For
the

season

through

May con¬
sumption totaled 7,643,000 bales,
against 8,109,000 in the same pe¬
riod.

a

ago.
In the carded
cloth markets,, busi¬
ness came to a virtual:
standstill
with transactions
widely scattered

gray

year

cotton

and in very small volume.

Little

activity
the

was looked for until after
coming holiday period.

A steady though moderate -vol*
ume of business in domestic
wools
continued
Boston

to

be

reported

market.

numerous

and

in

Inquiries

mills

were

the

were

said

to

be
constantly / seeking
desired
types. Considerable activity was
again noted in Texas wools with

demand

principally from mills and
topmakers.
Foreign wools con¬

tinued
in| demand
but
desired
types remained scarce and offer¬
ings were quickly" taken by mills.

Imports of foreign wools received
at the three

during the
amounted

pounds,

leading Eastern ports
week

to

ended

8,041,000

compared

with

June

14

clean

6,176,100

in the previous week. Appraisals
of domestic wools for purchase

by
Commodity Credit Corpora¬
tion totaled 12,154,906 pounds dur¬
ing the week ended June 14.
the

Retail

With

and

warm

Wholesale

Trade—

and sunny weather in

generally

increasing slowly.

were

Department

store / sales

country-wide basis,
the

Federal

as

on

a

taken

Reserve

Board's in
dex for the week "ended June

1946, increased by 35% above the
period of last year.
This

same

compared with
in

the

four

weeks

sales

an

increase of 37 %

preceding week.
ended

increased

For

June

by

the /

22, 1946,'

36%

and

the year to date by 27%.
/

Retail trade here in New

moved to

last

new

week.

stimulated

the

types of goods.
volume

r50%

high seasonal

Hot

was

weather

demand

_

greatly

for

many

Department

estimated

as

about

ahead of the like week last

with corresponding gains for
types of distributors.
Activity in many of the whole'
sale markets, particularly textiles,
came to a standstill in anticipation
of new pricing action under the
year,

other

OPA

Extension

Food sales

Act.

were

off because of

continuing shortages, particularly
of meat.

.

According

to

the

Federal

serve

C Bank's* index,

store

sales

the

1946,

in

Re¬

department

New York

City for
weekly period to June 22,
increased 37%
above the

period last year. This com¬
pared with an increase of 43%
(revised figure) in the preceding
same

week.

June

For the four weeks ended

22, 1946, sales

rose

by 41%

and for the year to date 34%.

%

'

V

V."

•'

•

f

'.rn'

i'"> "-<ri

,'V

.

■

.

'V

V-V''

'

'■"

\

11945.

7 Federal construction,
26-week total of 1945.
*.

'

Trading

Now York Exchanges

on

Civil

public r on
June 26, figures Showing the volume of total round-lot stock sales on
the New York Stock Exchange and the New York Curb Exchange
and the volume of round-lot stock transactions for the account of all
members of these exchanges in the week ended June 8, continuing
a series of current figures being publshied weekly by the Commis¬
sion. Short sales are shown separately from other sales in these
figures.. .'• \ ';.y Y<•'Y'
'/'<II' I/I'.' I'1- 1':
Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended June 8 (in roundlot transactions) totaled 2,020,537 shares, which amount was 16.39%
of. the total transactions on the Exchange of 6,166,320 shares,
This
compares with member trading during the week ended June 1 of
.2,539,686 shares or 15.22% of the total trading of 8,345,280 shares.
On the New York Curb Exchange, member trading during the
week ended June 8 amounted to 627,600 shares, or 15.43% of the
."total volume on that exchange of 2,033,745 shares. During the week
ended June 1, trading for the account of Curb members of 820,315

f /

The

.

Securities

and

Commission

Exchange

made

-

last week and

$128,606,000
84,010,000

Construction

Private

State &. Municipal

■

.

:

bridges,highways,

com¬

buildings and unclassified construction recorded gains this
the previous week.
Eight of the nine classes recorded

mercial
week

58,974,000
14,690,000
46,810,000
31,850,000
28,864,000 ^ : -10,129,000
17,946,000 •
21,721,000

.:.;

classified construction groups,»

the

In

-

-

$105,784,000 r $46,540,000

•

-

44,596,000
29,052,000
15,544,000

Public Construction
Federal

x.-';'. V--.;

Juue 27,1946 June 20,1946/ June 28,1945

Total U, S. Construction

over

jshares

was

15.13% of the total trading of 2,710,220 shares. V
Stock Sales

Total Round-Lot

YaY'Y

JUNE

ENDED

WEEK
,;

,,

A,'Total Round-Lot Sales:

v^>"'

New Capital

:

1 ' Y

*

'

s

Moody's Bond Prices and Bond Yield Averages

J

:

\%

<

J

> -

<*

>■

v"' '

'

Moody's computed bond prices and bond yield averages
given;ln:'the foUowing-'table./V,-;.;
,•

,,

|
•./iV

"Total sales

-

6,166,320

a———.-.——

„

B; Round-Lot Transactions for Account of Members^
■Hi

■

of

Accounts

they

^ '

.

.

.

,,

,

y.iiyl

'Y*

___

.•

Total

Short sales—

,

.

s:\<tI■;] :

tf:itii

Mother

—.

sales

..

—

.10,900

—

126,760

.

i. Other transactions initiated off the floor—

'

L75

-,

.

'112.56

116.02

119.20

121.46

124.11

118.80

123.56

121.25

118.60
118.6q

112.56
112.56

116.02

119.20

121.46

'

.■

7

r,

r

.

tOther

sales_

——-

121.25

118.40

' 112.56

116.02

119.20

121.46

123.34

121.25

118.40

112.56

116.02

119.20

121.46

26-,

124.11

118.80

123.34

121.25'

116.02

119.20

121.25

118.80

123.34

121.25 '

116.02

119.20

121.25

118.80

123.34

121.25

116.02

119.20

121.25

Closed
123.34

121.25

25.

124.08

Stock

21--——

124.17.

118.80

116.02

119.20

20

124.17

118.80

123.56

121.25

116.02

119.20

121.46

19

124.17

118.80

123.56

121.25

116.02

119.20

121.46

18—

124.20

118.80

123.56

121.46

116.02

119.20

121.46

' 124.17

118.80

123.56

121.46

116.02

119.20

121.46

17——

1,065,362

\

the Near York

on

'•■'•'in

•

' :

.'

...

112.56

116.02

119.00

121.25

124.17

118.80

123.34

121.25

118.401 112:56

116.08

119.00

121.25

124.11

118.80

123.34

121.25

118.40 " 112.56

116.02

119.00

121.25

11

124.02

118.80

123.13

121.46

118.40 ; 112.56

116.02

119.20

121.25

124.02

118.80

123.13

121.46

)Mi'k

'

'

WEEK ENDED JUNE 8,

;-&At

'" * £'
'
A.- Total .Round-rLot Sales:

,,r

'
.

'»'

,

V

,

Jg|

.

4

,

"

-

r

■r-ftrtjl

f-.v?'-'

■
„

^v * *

i*1.1

.v..-!-

:Totpl .,sales_

""

'

.si'v-

1 " ■1 ■"

2,033,745^7 •

—,—.

,B.*Rouhd-tot Transactions for Account of Members:

Total

registeredpurchases

!

tOther

204,530

.

Short sales—
sales

—

.

.

5;

.2.. Other transactions initiated
Total, purchases^..

on

the floor—

Bhort sale^L*—^4*——
tOther: :sales^ii——-iJ

*■<

,

:

—

-''v.-

—

'

".'i

'

59,325
>t>
1,900-"'

——.

,732,llp;t^5,v?

;

.'rTotal saies-.^.—ii-LiL...-i—i!.C-^.—,34,010-^
3.,Other transactions initiated off the floor— ,,
Total

purchases———

...—

"i;

sales—

•:

i'.;.

'

—

Total purchases
Short sales—..

"

....

306,020

....

.29,850

sales

C. Odd-Lot Transactions for Account of Specialists—
Customers'

short sales

'0.

>;'i v§Customers' other sales.———-;,r:"v f51,113

:

?'0tkijl';'! |>ur

i

''T 5 J^l
'

Total sales.—

v.-jU

122.09
122

22.

125.74

119.82

123.77

122.29

119 41

114.08

117.20

120.22

122.09

125.80

119.82

123.77

122.29

119.20

114.27

117.00

120.22

122.29

125.86

119.82

123.56

122.50

119.20

114.46

116.80

120.43

,122.29

125.84

119.61

123.56

121.88

119.20

114.27

116.61

120.22

122.09

-tin calculating these percentages the total
compared with twice the total round-lot volume
the Exchange, volume
v,

,

of
on

members'
the

purchases

are

exempted from

restriction

by

are included with, "other sales." •
'
§Sales marked "short exempt" are included with "other sales." ' ;
——

...

sales

reason

is

week and 472% above the week last year.

Public construction, $44,'596,000, is 5% below last week and 40% greater than the week last
year.
State and municipal construction, $29,052,000, 1% above last

week,-is 187% above the 1945 week.
Federal construction, $15,544,000, is 13% below last week and 28% below the week last year.
Total engineering construction for the ,26-week period of 1946

construction in

total

of

$2,632,186,000?!Iwhich is 200% above

like period of 1945.
1946

totals

On

a

cumulative

basis, private

$1,678,739,000, which is 554% above that

Public construction $953,447,000, is 54% greater than the
cumulative total for the corresponding period of 1945, whereas

for i945.

State and

municipal construction, $639,745,000, to date, is 385% above




122.09

119.41

122.09

117.60

120.43

122.50

123.45

117.60

121.46

119.82

117.40

112.19

114.46

117.80

120.63

120.15

:

/

112.37

118.60

116.80

112.19

102.96

106.04

MOODY'S BOND YIELD AVERAGES

zr

U. 8.

.

v;;;?!.::?,.

Govt.

Avge. z7Y:Z;7y /,!'!' z
Aaa

rate*

Ziz-'

Corporate by Groups*

Aa

Baa

A

:

R. R.

P. U.

Indus

2.73

.3.03

2.85

2.69

2.58

2.72

3.03

2.85

2.69

2.58

2.59

2.73

2.85

2.69

2.58

2.59

2.73

2.69

2.58

2.85

2.69

2.59

2.85..

2.69

2.59

2.85

2.69

2.59

2.69

2.58

—_

Stock

Exchange

Closed

,-

27

—

25——

3.03
•

2.59

2.73

3.03

2.59

2.73

3.03

,-i
-

2.59

2.74

3.03

,

2.59

2.73

3.03

-

2.85

20—

1.46

2.59

2.73

3.03

t

2.85

2.69

2.58

19———„

1.46

2.59

2.73

3.02

2.85

2.69

2.58

1.47

2.58

2.73

p 2.85

2.69

2.58

1.46

2.58

2.73

'2.85

2.69

2.58

2.85

2.70

2.59

2.85

2.70

2.59

15—-

Exchange Closed

-

3.03

'

3.03

z

14-—.^

2.49

2.59

2.73

3.03

13———

2.49

2.59

2.73

3.03

2.59

2.73

3.03

11——.

2.50

2.58

2.73

■3.03

10

2.50

£.58

2.73

3.03

2.49

—

5'
?.

Stock Exchange Closed

7l—I—'I'

2.71

2.59

2.73

3.03

2.71

2.59

2.73

3.03

5—^

2.72

2.59

2.74

3.03

2.72

2.58

2.74

3.03

2.71

2.58

2.73

3.03

Stock

i

May 31

—

17—

10

Apr. 26——

2.85

2.70

2.59

2.85

2.69

2.59

2.85

2.70

2.59

::

265.0
252.1

—

—

311.6

High, July 1——Z——-■
Low, Jan. 2-——

264.7

OddiotTrading

NYSE

arid

Exchange

being published by the Commis¬
The figures are based upon

sion.

reports filed with the Commission

f

'

i'

dealers and spe-*

odd-lot

by the

"
'V,1

'

*

r

/'*

-

.

:•./'» -;S.c

'•••

.•**

TRANSACTIONS FOR THE ODD
LOT ACCOUNT OF ODD-LOT DEALERS

STOCK

ON

SPECIALISTS

AND

STOCK

'

'

Z

THE

Y.

N.

EXCHANGE

2.58

2.73

3.03

2.50

2.58

2.73

; 3.03

2.74

3.03

2.58

'

2.70

'2.60

Number

of

orders-

2.84

2.70

2.60

Number

of

shares——V', 903,974

2.84

2.70

2.60

2.84

2.70

2.60

2.84

2.70

2.60

2.52

1.49

2.51

2.58

2.72

1.44

2.51

2.57

2.72

3.00

2.82

2.68

2.60

1.45

2.49

2.59

2.73

3.00

2.83

2.68

2.6C

2.69

2.96

2.79

2.64

2.57

2.83

'

2.69

2.94

2.77

2.64

2.56

2.93

2.77

2.C4

2.55

Mar. 29

1.36

2.46

2.54

2.68

2.94

2.78

1.35

2.47

2.54

2.68

2.95'

2.79

2.64

2.55

2.80

2.64

2.54

2.94

2.64

1.34

2.47

2.54

1.34

2.48

2.53

2.69

2.93

2.81

2.63

2.54

2.48

2.56

2.69

2.94

2.82

2.64

2.55

2.49

2.56

2.70

2.94

2.83

2.64

2.55

1.31

2.50

2.59

2.70

2.68

2.55

1.51

2.58

2.66

2.78

3.05 '

2.93

2.76

2.62

2.67

2.93

2.77

2.63

2.53

2.85

3.27

3.05

3.57

3.39

2.96

2.78

1.31

2.45

2.53

1.79

2.72

2.81

2.99

2 87

Total
Per Wee*
30,796

,

$42,944,983

Dollar value

/I

(Customers' sales)

/

■■,

Number of Orders:

'

,z.

»

,

Customers'

short

sales—_

•Customers'

other

sales™.

25,524

sales™.

25,576

total

Customers'

'

; •

r,

•

52

Number of Shares:

Customers'

2.55

1.34

v/

..—__

Odd-Lot Purchases by Dealers—

2.60

2.67

2.69

Week Ended June .15, 1946

2.84 ;

1.47

3.02

/

(Customers' purchases)

2.67

1946

con¬

Odd-Lot Sales by Dealers—

2.54

1946

Exchange,

tinuing a series of current figures

2.60

2.54

25

ists who handled odd lots on the
New York Stock

;

2.51

1.43

1.33

account

special¬

2.59

2.46

21

odd-lot

/ 2.60

2.46

1—II—

for

of all odd-lot dealers and

2.70

2.46

15

figures

complete

2.70

1.34

22

15, of

transactions

Exchange Closed

1.43

1.38

June

showing the daily volume of stotfi:

2.70

1.35

Low

1946

256.7

—

i——

Dec. 27
Low, Jan: 24-.

1945 High,

2.85

12

/an.

Yeaf ago,

280.8

.

2.85

; 5

High

286.3

^

——;

2.85

2.56

Feb.

June.l
July 2, 1945

'

776-^777^
.

Month ago,

cialists.

Stock Exchange Closed

12-——i-

■:7 Z"

•,'<2.85*'

3.03

1.46

Stosk

.'21—

7 7

305.1

.2^-*—---^--—/-^

weeks ago,: June

Two

ed

v7vz:.:/;;7-:r;

Corporate by Ratings*

Corpo¬

2.59

•, •

289.7

26,; a summary for the week end¬

-'S*;

(Based on Individual Closing Prices)

2.59

'

288.7
•289.7

Commission made public on June

1944—

28

287.6

•

—

1945—

2.48

7

Tuesday/ July

The,. Securities

2.48

777./.':

$128,606,000 for weekmsim

cumulative

120.22

115.63

114.46

2.71

_y

engineering construction volume in continental United
States totals $128,606,000 for the week ending June 27, 1946 as re¬
ported to "Engineering News-Record/'
This volume is 22% above
the previous week, 176% above the corresponding week of last
year
and 3% above the previous fcur-week moving average.
The report
issued on June 27, added:
-7..
Private construction this week, $84,010,000, is 42% above last

a

116.41

113.31

119.61

2.71

Civil

records

114.27

119.00

122.50

1.47

.

Engineering Construction Totals

the total for.a

119.00

121.25

124.20

Tuesday, June 25, 1946..
Wednesday, June 26-i.*.!——lb ursday,; Jun e -27—

•

24

"-•o

121.88

123.12

120.02

1.47

that

< ••

?

123.34

119.00

126.28

Bonds

the Commission's

—

120.22

126.28

v/.: 1——

V

rules

Civil

and

Exchange for the

126.02

Averages
July
2_———

-

includes only sales.

JRound-lot, short sales which

——

members' their

.py

•y 2 Years Ago

'

*The term "members" includes all regular and associate Exchange
firm6 and their partners, including special partners. ,(-*'< . -v.

121.88

120.22
120.22

:/777T87.^-i;
>

120.12

117.60
117.40

•

ll\

v'

;

117.60

11^.46
114.27

-,v

7:.'!-7' ■

116,399

—.

114.27

119.61
119.41

•

»

•« *

*

119.61

122.29
122.29

.777
'

122.29

123.99

24———

'

:

-

123.99

123.99

15.43
'

121.04

120.02

22—

'

119.20

119.82

■

1

116.41

125.92

"

—7

...

112.75

125.61

26_

321,600

118.60

5.

291,750

—:7
:

7121.46

Mar. 29.

'•

Total

-

122.92

3aturday, June 29—* 'i 289.7
Monday, .July, l—-^————————" 311.6

121.04

,

Moodys Daily
Commodity Index
Friday,- June 28,—J————,

121.67

77;./

York, at 7 p.m., Eastern Daylight
Time, each Saturday for 13 weeks.

121.04

120.22

June 29_,

——

—

Conceived and

winter.

last

tem

produced by NAM, the program
again will originate at WJZ, New

119.00

117.20

3.38

day, July 6,
will bring resumption of NAM'S
widely noted "It's Your Business"
series which was presented over
the American Broadcasting Sys¬

116.20

113.89

2.

i$

assistance;

same

112.56

119.20

Dally

-95,330

The

needed.

118.20

121.88

:1946-^.

B4,fi8ft

.

7
?

...

tother .sales

..

*

other

whatever

121.46

123.99

i,

to tell, arrange contacts
with company managements and
secure their cooperation, and give

122.71

118.60

119.61

'

stories

121.04

125.30

1946

is

program

119.00

18

—-

the

help select cities and the indus¬
with the most interesting

tries

116.22

121.04

1946—

Section—-AFL," broadcast earlier
this year.

112.56

119.41

21..

and customers. The
a
follow-up to

be

118.40

119.41

25—

will

121.46

123.13

116.61

/an.

series

"Cross-Section—CIO" and "Cross-

121.04

116.41

-10,630-''

^U ::. 7. tother sales.—
.»■;' Total
•.
4. Total—

talking with them
around
the
microphone
about
what industry is doing and hoping
to do and about their problems
week,

121.04

113.12

feb.

center

industrial

different

a

119.00

u(-%

113.12

"

42,165

i

—

'xi, -?■ short sales—

in

each

116.22

118.80

120.02

p.m.j

Time.

112.56

121.46

118.60

125.77

4

to

Dwight
Cooke, CBS roving reporter, will
visit managements of businesses
Daylight

118.40

122.92

118.80

3:45

from

weeks

119.00

118.40

July

2.29'

Named
"CrossSection-^-NAM," the feature will
be broadcast every Saturday for

Manufacturers.;

119.00

121:67

July

l^vli

123.83

Association ot

National

with the

116.22.

"

121.25

1 Year Ago

\\

■'

■

presented by the Columbia Broad*
casting System in collaboration

116.22

vll8.40

122.92

-;!!■«■
.

v

who manage

112.56

121.46

121.46

Closed

123.34

Low

•

,

...

121.04

118.20 *. 112.56

122.92,

119.0Q

Sigh

9.76

121.04

119.00

.■>.

7

'

121.04

119,00

124.49

,

\1

—

12

-

119.00

116.02

124.33

-

'h

,r

,

192,260

—

116.02

112.56

Apr. 26
/■-'

174,960

———

sales—.

112.56

118.2(1

123.13

124.14

17

"

Total

118.4Q.;

«121.25

118.60

&

r

;

17,300 '

—

121.25

123.13

\ ■ 7 7:;

,

118.80

123.99

1.. Transactions of specialists in stocks in which
are

121.25

123.13

118.60

124.02

"izzzz

,

121.25

119.00

118.80

118.80

•

^t!'itCHherisaies^-..i——H.--/, 1.999,3207^-14!-;-.■ rv-.

119.00

116.02

124.02

123.99

t%

34.425.J;

,

116.02

112.56

124.02

May 31———
77 7:24. ;■

h

,

112.56

118.40

123.13

Exchange

■

Short;saiei.—:

118.40

118.80

124.02

118.40::

121.25

124.02

Stock

!!
■

Total for Week

''

"

"

1946

—

vV-7--

121.25

123.34

Stock Exchange Closed

3

'

:

118.80

124.17

*

•••

?•*

Curb Exchange! and Stock

/Zllpitfi:;.ihuV.Transactions; lor.:'Account "of'-Members* (Shares)

;

121.46

12

.11.11.

16.39

:

Stock Exchange Closed

6.

7

in .;V;''T

v-.-ii'

I,

Exchange

13

v

904,362v

:

-'■■"*

Total sales-———.-

Total Round-Lot Stock Sales

124.08

8

161,000

:

Closed

22

955,175

——

■

''5

1178

123.34

10

-

7 Indus.

118.80

.

''>7''"'

P. U.

118.80

^

'

7 R. R. #

Exchange

15

4.4Q'_

Corporate by Groups*

•

Baa

124.08

274,262

———7'^

•

.

Stock

14

tnrrarr*

4- Total—t
?TotaL-purchases.^-———Short sales—

A

124.11

733,410
—

: Aa *

28—

241,795

,

Aaa

rate*

Bonds

27_.

:

1

*

Total sales—

•

•

-

118.40

i- ''

-

'

t

Total" purchases———

H il^yrj^.Short'sales—
\/
tother sales

?•;

121.25

,

Tot^ sales———1—; j; 137,660 "

:i

123.56

*

'

'

Total, purchases—>/ 78,020

--ii-,'

•

% 118.80

'<

4

on the floor—

and small, and the people
it, will open July 6,

large

to

,

124.11

10.18

"'620,030'

*2. Other transactions Initiated

•5.^;

,

Dally

■

:

.

v

Averages
July
2..

June 29-

503,340

-..v,,-'

.

Govt.

116,690

—

^.7;;*-.-7-■

help people get better acquaint*
with
the nation's p business,

NAM's part in
.

U.S.

.

635,360
•

—....—,—

.

-1946—-.

Odd-Lot

purchases

MOODY'S BOND PRICES
(Based on Average Yields)
Avge.v..;v.i'Z
^
Corpo¬
Corporate by Ratings*

s

1_.

Short sales....
tOther sales

'

-

>

registered—

are

rri Total

.

ni/f

t

Dealers; and Specialists:
•
^
1. Transactions of specialists In stocks in which
.7

6)

Odd-Lot

for -the

Except

j

'

V

" '

v

•

are

:?.!■' <*'•

Air July 61

on

and employes

■

Total for Week
'
"
*'
>
174,250 ;z:/z
5,992,070 * ' '

,

,

'

sales..,.™...*
tQther salesu.*../*.*.—

capital for construction purposes this week totals $13,981,000, and is made up of $10,660,000 in state and municipal bond sales
and $3,321,000 in corporate security issues.
New capital for the
26-week period of 1946 totals $667,398,000, 24% greater than the
$539,751,000, reported for the corresponding period of 1945.

'

.-.

td;

13

New

8,

Short'

r>.ft.;

(Shares)

to

Eastern

:

$<

-

series of radio programs

new

gains this week over the 1945 week as follows: waterworks, sewerage,

Exchange and Round-Lot Stock

the New York Stock

on

Transactions for Account of Members*

A

bridges, highways, earthwork and drainage, public buildings, indus¬
trial buildings and commercial buildings,

.

VWV,;''

NAM

current week,

.

4 • ic-J:-

J.

>>,

$313,702,000, dropped 36%; below the
'
r;'V.K.C.,:i"i

construction volume ^ for the
the 1945 week was:T
y;-!;-"

engineering

^

' "V,'

Thursday, July 4, 1946.

THE COMMERCIAL & FINANCIAL CHRONICLE

•Customers

short

sales.—

2,153

other

sales.z..

721,170

total

Customers'
Dollar

sales.

723,323

value

$34,041,029

Round-Lot Sales by Dealers—
Number of Shares:
Short

sales

tOther sales

/z

.

.

Vz"V
180

.....

140,170

...

1 Year Ago

July

1945—
Ago

2,

Total

2 Years

July

1,

1944—

3.04

computed from average yields on the basis of one "typical" bond
maturing in 25 years) and do not purport to show either the average
level or the average movement of actual price quotations.
They merely serve to
illustrate in a more comprehensive way the relative levels and the relative movement
of yield averages, the latter being the true picture of the bond market.
NOTE—The list used in compiling the averages was given in the Nov. 22, 1945
♦These prices are

(3%%

issue

coupon,

of

the

"Chronicle"

on

page

2508.

sales

140,350

Round-Lot Purchases by Dealers—
Number of shares....
...

-

Sales

marked

"short

.

exempt"

ported with "other sales."

;

'

312,510
are

Z:;Y,

re-*
.

j

tSales to offset, customers' odd-lot orderg
and sales to liquidate a long position
is

less

"other

than

a

sales."

round lot

are

which

reported with

Volume

164

Number 4504

THE COMMERCIAL & FINANCIAL
CHRONICLE

Daily Average Crude Oil Production for Week
Eniled June 22, 1946 Decreased 11,150 Bkls.
';>•i V The American Petroleum Institute estimates

in

of the

excess

daily

7 The total production of bituminous coal and
lignite in the week
June 22, 1946, as estimated
by the United States feureau of

that the daily aver¬

Mines,

7

.!

7

.

"

.

as

whole

a

to stills

ran

on

barrels of

14,271,000

1946; and had in storage at the end- of that week

barrels of distillate fuel, and 46,526,000

Residual fuel oil.

barrels of

DAILY

AVERAGE

-

CRUDE

...

*B. of M.

Week

ables

June 1

*11>■
Virginia.
••Ohio—Southeast
itheast —)

8,400

I

1

V"7

Zndiana
Illinois

18,000
31,000

Michigan
iNebraska

46,000

;

260,000

•"

380,000

<

'.7

;
r-

'

7,

46,550

7 + 5,350

383,850

276,500

Other Dist. VL«,

VII-B—,>

•

,

107,350

t 77* 77
7? y 77
v'
ga

32,40a

■

7 'District VII-C...

•

'

District Vin___.

District IX

t:

7

District X_—

132,400

,^

'

86,450

2,050,000 12,293,092

r—J4,000

25,497,000

1,077,000

27,872,000

1,307,000

27,103,000

24,515,000

26,478,000

States

Coastal

Louisiana.

7 7 81,900

1

-

'

,

,

.

,>v

..

total-

current

shipments

and

weekly

are

estimates': are!; hased

subject

sources

to

revision

of

or

State—

final

4X1,000;

r' Arkansas-w«—79,000

Mississippi

78,268

73,650

500

-r,

300

106,000

63,150
1,150
97,600

§831,000

111,600
25,750
32,850
883,000

57,000

Alabama

—

1,000

.
.

New Mexico—So. East)

.

98,000

Ne w Mex Ico—O the r.-. J

Wyoming

f

2,180,450

Montana
f

California

,

j

104,000
22,000
26,000
848,000

.

374,650

50,600

1,150
-

v

450

:

103,350
450

110,200

900

;

25,050

+

1,050

32,050

&*,+

7,900

871,000

700

:

97,000

•V

v

79,650

63,850

900

•

^ 368,150

73,850
•

500

+

Colorado

150

•

4,670,000

4,949,500

-11,150

110,300

20,250

;

7 11,250

950,700

:

4,890,450

^
and

Oklahoma

^

•These

r

65,100

Bureau of Mines calculations of

are

30Q

+

4,897,864

64,200

63,150

the requirements of domestic crude oil

(after deductions of condensate and natural gas derivatives) based
upon 'certain
tpremises outlined in its detailed forecast for the month of June. As requirements
may
be supplied
either from stocks or from new production, contemplated withdrawals
from crude oil inventories must be deducted from the Bureau's estimated
requirements
«6o determine the amount of new crude to be produced.
In some areas the weekly
•estimates do, however, include small but indeterminate amounts of
condensate which is
•xnlxed with crude oil in the field,
V

; rf

i {Oklahoma, Kansas, Nebraska figures
tThis

Includes

is

the

net

shutdowns

basic
and

allowable

exemptions

are for; week

of

as

for

June

the

1

entire

month.

30-day basis and
the exception of

a

With

those fields which were exempted entirely the entire state was
ordered shut down
ifor four days, no definite dates during the month being
specified; operators only being
required to shut down as best suits their operating schedules or labor needed to

«®perate leases,

total equivalent to 4 days shutdown time during

a

the calendar month.

{Recommendation of Conservation Committee of California Oil Producers.

.

(Figure* in thousands of barrels of 42 gallons each) :

4

"

"*

-Bureau of Mines
IGasoMne fFlnlsh'd

% Daily Crude Runs

Refin'g
to Stills
Capac. Daily % OpReport'g
Av. erated

! District—

igftast Coast

,99.5

.Appalachian—
District No.

'
—h

v

.

Figures in this section Include reported totals plus an
estimate of unreported amounts and are. therefore on a

-4-'

816

Produc'n

an^i Mlssourl^^-^...
Kentucky—Eastern-iu-.^.

Maryland-^;
Michigan...™.....
Mexico,-

•

Blended

'97.3,

■

and

basis

tStks. of fStks.

IStocks

1,712

of

;

.

Kero-

Stocks

22,890

Gas Oil

of

& Dlst.

Resid.

Fuel

sine

:

Fuel

on

;

5,340

•

,

%

1

76.3

104

i.——

.Und., 111., Ky
«Okla., Kan., Mo

87.4

749

78.3

'

381

2,495

S

285

429
< 138

87.1

184

1,052

62

86.1

2,724

18,608

2,130

8,517

1,276

8,233

59.8 t

212

64.2

975

2,942

89.2

1,188

96.9

3,373

14,214

Xouisiana Gulf Coast- j'

2,317

97.4

335

6,190

104.4

900

>3,712

1,298

INo. La. & Arkansas

55.9

52

1,641

41.3

123

1,832

195

454

877

;
*

5,029

81.2

inland Texas
-Texas Gulf Coast

V

361

No.

3

19.0

*12

District

No.

4

70.9

129

85.5

804

♦California

TotalU.S.B. of M.
basis June

22, 1946

"TotalU. S. B. of M.
.

basis June

15,

•;

92

'43

39

78.2

369

2,059

•r:

144

451

708

80.9

2,302

14,765

/

710

8,194

24,081

4,S36

87.0

14,271

*92,894

"V
85.8

;

20:

-

4,799

86.3

" 13,744

23,

1945

Includes

gasoline
transit

stocks
and

in

5,067

•

unfinished

gasoline

of

gas

residual fuel

oil

and

week ended June

23, 1945.




,

■

77 183,000

v'i'/'yqqq

-f;

7

12,400,000

;

12,780,000

/•/

;'

* I

11,746,000

the N. & W.;

on

relationships be¬
tween officers and enlisted men of the
Army. The report of that
Board, released by the War Department on May 27
declared, accord¬
ing to Asociated Press Washing-^
——
ton

advices,

present
harks
and

36,420

46,526

that
structure

back"

"much
of

the

to

of

old

the

Army

our

Prussian

British

swept

with

away,

"soldiers"

to

everybody

rather

man"

"officer".

and

addition

elimination
between

of

to

be

than

plain

used

for

"enlisted
-

and

distinctions

8,706,000

in

barrels

of

1946, which compares with 2,068,000
respectively, in the preceding week
9,803,000 barrels, respectively, in the

,,

,,

,

,

the

crime for enlisted

a
a

men

rank, the more
alty. It also proposed that enlisted
be allowed to

serve on

courts

martial, provided they outrank the
accused.

urged
a
merit
system—one
which would permit officers to be

demoted, too, or dismissed entirely
if incompetent.
It said that men
selected for officers ought first to

called for

halt to whole¬
distribution tof
decorations
a

man's rank, the more difficult it
should be for him to merit an
award.
It

also

contract

authority for
Administration; His

signature
was
affixed
to
the
Agriculture
Department,, appro¬

452,814 previously authorized for
the project. The bill also

provided
$661,847,988 for different govern¬
operations, including $416,000,000 7 cash for
the
Veterans
(chiefly for National Service Life
Insurance) and 892,500,000 for the
War Department to bring back
ment

bodies of the war-dead. The bal¬

distributed among sev¬

ance was

eral

departments.

7U .7 $

7

The

Agriculture
Department
appropriation
provided
$1,137,694,189 for the operation of that
branch during the fiscal year that
just started; the total includes
$75,000,000 for the Federal school1
lunch

A

program.

section

of

the bill

"no

strike"

bars

payment
of salary to any worker belong¬
ing to an organization claiming
the right to strike against ' the
Government,
-?f
Teacher salary /
boom

deficits fin

communities

hardship
munities

war

provided

was

cases.

Some

*<■

this

assistance.

the

funds

proposed

pay, allowances,
and inspections.

According

to

reforms

in

In

7.
Mr.

Patterson's

need

order; to

get

municipalities 7 must

ing at

a

deficit and that there is

continuous

a

overburdening of

school facilities. The

appropriation

made under the Lanham Act

which

provided

messing facilities public services",

recent: announcement, (June 25)
the recommendations of the Board

com¬

show that their school is operat¬

was

*

250

have claimed they

7

"that will tend to cheapen them,"
and declared that the higher a

of

additional

the Veterans

officers, and
for by ah appropriation of $7,000,offender's
000 for one more year in extreme
severe be the pen¬

sale

it

dispatches from

Washington, included one signed
June 21 providing funds for vari¬
ous
government
operations and

crime for

"strongly rec¬
following reforms,
(May 27) re¬

is proposed that the
system
promoting officers on the basis
seniority be discarded. Instead,

the

according

higher" the

Board's report also

men,

It

of

which is

that

,

advocated"that " anything

ommended" the

of

unfinished

,

is

It

40,165

barrels

It

men

?

recommending

social

officers

the

men

the Associated Press

terminals,

they

the

31,694

bulk

in the ranks—except
of technicians, and
should not get command

should be

9,058

produced 1,928,000
fuel oil and

case

the

between officers and enlisted

t87,099

were

year

in

posts.

15,200

tlncludes

serve .a

military orders, and
off-duty saluting be
abolished, that social distinctions
that

ported:

at

.

,

.

.

June 25 Secretary of War Robert P. Patterson
announced his
approval of nearly all the recommendations made
by the Board,
headed by former Lieut. Gen. James H.
Doolittle, which had been
appointed to make suggestions for improvement of

45,915

oil during the week ended June
22,
5,447,000 barrels and 8,931,000 barrels,
1,410,000 barrels, 5,106,000 barrels and

barrels,

7

"-"-r

there

1,000

<

and to a bill
7,78,000 priation June 22
25,000 providing funds for teacher salary
36,000 deficits
in certain communities,
661,000
June 27. •
-'
' 7
2,889,000
139,000
Under the June 21 measure, the
2,000
Veterans
Administration
was
125,000
7 . 367,000
given $441,230,000 new contract
21,000
authority to complete 76 hospitals,
2,073,000
which was in1 addition to
$331,1,051,000

Dept. AccepSs Doolittle Board
Recommendaficns for Army "Caste" Ref onus

35,582

distillate

,

119,000.
413,000
15.0QO
2,419,000
1,222,000,,99,000 j.

.,

received

signature,

,,7-

.

War

J

of

7

33,000
3,000

,

13,611

8,689,000 barrels,
JStocks at refineries,

of 12,124,000 barrels.
pipe lines.
§In addition

kerosine, 5,592,000 barrels

and

stocks

'

C. & O.; Virginian: K. & M.; B. C. &
G,;
on the B. & O. in
Kanawha, Mason, and Clay counties.
fRest of State, Including
Panhandle District and Grant, Mineral, and Tucker counties.
§Includes Arizona
Oregon.
;*Less than 1,000 tons.
/
' .,
: ;

93,449

:

•

U. S. B. of M. basis
June

the

14,510

•

1946

and

In

.41

•

& lignite.——.

7

2,945,000 7
134,000>.

:

.

19.000

'u

tlncludes operations

"

92.3

■"...v-?':.*.

85.8

Total bituminous

-

.

7' 97,000

•

SOther Western- States

129,000
1,018,000
77 7 361,000

-

recently

to Asociated Press

36,000
<

30,000

.2,502^000
r&65;ooo

—

Wyoming—-—^-^—---——--7,-.

term

Stocky Mountain—
District

,

tWest Virginia—Southern

be

2,218

366

v

:

tWest Virginia—Northern

urged

*292

72.7

84.7 w,- 54

our

President's

1,000
1,432,000
479,000

35,000
855,000

'■

l-—

which

7:7

2,000
7 70,000

>7

3,505,000
151,000
1,000
106,000
423,000

-

(bituminous & lignite)

V irginia—

73,000
70,000 :

31,000
30,000
801,000

Ohio-——-.w—
Pennsylvania (bituminous)——
Tennessee-—

Oil

11,272

*

District No. 2—

'

North & South Dakqa (lignite

and

59,000

93,000

•

Montana, (bitum. & lignite)—a—

Texas

56,000

u

1,165,000

.

Kentucky—>Western»>7i--.-i.*i.-i^

New

413,000

1,538,000
517,000
41,000
94,000
1,142,000
442,000

a

unnecessary vi¬
national concepts of

Various appropriation measures

1945

,

7ir'f

in such

army

avoid

from

61,000 -:777: 7 i
,7 78,000
7:77l08,00tf:7577 '77 0 124,000

31,000

—

Kansas

v

at Ref.
;t Unfin. X
Inc. Nat. Gasoline

to

as

olence to

398,000
4,000

1,000

...

.

Signs Appropriation Bills
,

7
6,000':7:7''

6,000'

,

freedom and democracy.

On

RUNS TO STILLS; PRODUCTION
OF GASOLINE; STOCKS OF FINISHED
AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL
77
AND RESIDUAL FUEL OIL, WEEK ENDED JUNE
22, 1946

be

river

IM^-IJune 16,

.

"

412,000

.

1,000
1,383,000
498,000

.

Indiana—,—

V ;v

CRUDE

the

must

and into the control and command

operators.)

1946

,

109,000

;

TUlnnls

a.m.'June 19, 1946.

on

no

where

one

leader

practices of the
way

,

ended'7:00

calculated

the

Jun6 8,

'55,000

Colorado

Washington-—^———

.•"Pennsylvania Grade Included above.^w

from

441,000

...

Utah
Total United States

returns

15,

"1946

Alabama

.

r 378,000

on

on
railroad carloadings
and
receipt of monthly tonnage reports

annual

.

Iowa—

.7 .380,000

be

requirement into the organization

—Week Ended

7 81,200 7". 69,200
;• 293,450 > 298,950

150

+

is

„

98,700

June

.

the

.on

can

The other fundamental of the
problem is to fit this inescapable

washery

district and State

;

2,219,450

296,100 J

77

tExcludes

Georgia and North Carolina
-

situation

.

86^400 :'

2,243,750

-'7

victory

There

responsibility involved
and
to
exercise authority equal to that
responsibility.
\<t >

June 26,
1937

tCommercial produc. 1,151,000

(The

>-V--J •!:

•

North Louisiana—

JlJune 23,
1945

28,190,000

Alaska

A'-^otal.Texas--^

June 22,
1946

1945

Arkansas
;

1946

H June 23,

1,359,000

'

: 131,700

objectiveof
in national

hesitate to accept the. tremendous

%"

,r

-Calendar Year to Date-

§ June 15;

ESTIMATED WEEKLY PRODUCTION i OF
BITUMINOUS COAL AND LIGNITE,
BY STATES,! IN NET TONS/

32,200"
28,ioo:
''556,300'
-

t June 22,

1946

42,550

-14,000

win

authority of the

91,800 7 124,300
1,495,400
21900,100
1,797,900
and dredge coal and coal shipped
by truck from authorized
colliery fuel. , JSubJect to revision.
§Revised.
111945 weekly
and calendar year to date
production has; been adjusted to the final 1945

Vv'i j <7 • v 'Of:-,

7/Vf

"

Beehive coke—•

342,000
7.^1.^7 106,2507

28,450
566,450

The

tonnage.

226,700

to

unchallenged. Men will fight well
only with a leader who; floes not

1,120,000

498,100

-43,960
.

June 23,
t June 22,
June 23,
71945:'' 7, 1946
1945
11,614,000 222,545,000 285,663,000
1,936,000
1,523,000
1,926,000

fuel 1,197,000

United

7. 19,550
149,600"

326,000
•

,

must mot

we

fundamentals.

-

—Jan. 1 to Date—

Week Ended

:

Penn. Anthracite—

900

229,600

'

East Texas..

■77.7.; V,

"

•Total incl. coll.

384,300

the

democracy in the platoon advanc¬
ing under fire to take a. tactical
objective. Only discipline of thehighest order can then win the
fight and at the least cost in lives.

COAL AND LIGNITE

Net Tons)
■

.204,400
'30,600

750

-LiL.-

crisis,

;

r

12,900

263,600

515,400
? 7'

■7 "7

OF BITUMINOUS

detail,

of

ultimate

armies is to be ready

■

2,700

5~450

—

"V:

♦Includes

District V

•

-K 5^050

19,650
155,650

District IV_——

District

350

sight

The

* (In Net Tons)

.

operations.

District III .-U...

..

+

lose

ESTIMATED PRODUCTION OF PENNSYLVANIA
ANTHRACITE AND COKE

■y.K+y 777?:..

7*;777:7:

District II

•

300

2,500 v
20,050
.208,850
30,650
47,050

+1,300

;;

)277,450
t388,500

District' I—

:

.

+

1750

255,000
380,000

Oklahoma

trexas-^-

.

y
i

.

.

provement in

,

9,ioo
5,350

5,450

750

r~

45,100

w-—800

Kansas

/

,

14

8,450^

400

'

—

31,200

i

48,700

.

250

19,900
208,150

210,000

.

Kentucky

j

June 22,
m •June 15,
Bituminous coal & lignite—
1946
' i
1946
Total, including mine fuel__
11,875,000
12,400,000
Daily average
£1
''
1,979,000
,2,067,000
•Revised.
tSubject to current adjustment.

1945

50,300

**250

+

,

2,100.

,

_

Week

Ended
June 23,

v

1946

450

250

9,050
5,250

7,600

-

Ohio—Other

June 22

Week

,:W

50,800

Florida

4 Weeks 7
Ended
/

from
Previous

22,

1946

48,200

'

••West

•.

Week Ended

Change

Ended
June

Begin.

June

(FIGURES IN BARRELS)

•

battlefield.

PRODUCTION

ESTIMATED UNITED STATES

con¬

a final
yvord on this whole
problem, I cannot refrain from
pointing out that in seeking im¬

corresponding week of 1945.

.y y4

.

Actual Production

Allow¬

Calculated

Requirements

York-Penna.—,

-\

OIL PRODUCTION
state

••New

'

•

.

Patersoni

statement, according to
with'the; follow¬
.7-7: ••■ .7. ■'
7 ■ • 7;77; 77 "7> ;

As

The Bureau also reported that the
estimated production' of bee¬
hive coke in the United States for the
week ended June
22, 1946,
showed an increase of 6,900 tons when
compared with the output for
the week ended June 15,
1946; but was 25,600 tons less than for the

92,894,000. barrels of finished and unfinished gasoline; 13,744,000 bar¬
rels of kerosene j 36,420,000

ing:

producers.

'distillate fuel, and 8,706,000 barrels of residual fuel oil during the week

Secretary

he United Press,

when compared with the
corresponding period of 1945.
It
announced that the final
figure for 1945 calendar year
anthracite production was
54,933,909 net tons, of which 260,342 tons
was "bootleg" coal
prepared and shipped by recognized

gasoline; 1,928,000 barrels of kerosene; 5,592,000 barrels of

ended June 22,

Board,

cluded his

also

was

mately 4,836,000 barrels of crude oil daily and produced

nels.'" 7'7; 7• 7'. ,
■';v 7> ,
After expressing appreciation of
he work done by the Doolittle

of 10.6%

Bureau of Mines basis approxi¬

a

abolished; and

hat copies of reports of
inspectors

general be transmitted to the War
Department outside regular chan¬

7 Production of Pennsylvania anthracite for the week ended June
22, 1946, as estimated by the Bureau of
Mines, was 1,197,000 tons, an
increase of 77,000 tons, or 6 9% over the
preceding week.
When com¬
pared with the corresponding week of
1945, there was a decrease of
162,000 tons, or 11.9%. The calendar year to date shows an
increase

Reports received from refining companies indicate that the in¬

dustry

"enlisted men" be

was

,

The Institute further reports

that the terms "officers" and

are

11,875,000 net tons, a decrease of 525,000
tons, or 4.2%,
from the preceding week.
In the corresponding week of
1945, output
was estimated at 11,614,000 tons..
From Jan. 1 to June
22, 1946, pro¬
duction of soft coal was estimated at
222,545,000 net tons, a decrease
of 22.1% when compared with the
285,663,000 tons produced during
the period from Jan. 1 to June
23, 1945,
"

-mated by the United States Bureau of Mines as the requirement, for
the month of
June, 1946. Daliy production for the four weeks ended
June 22, 1946, averaged 4,890,450 barrels.
\as follows:

gestions which have been rejected

ended

figure of 4,670,000 barrels esti-

average

which have been
approved have
been ordered into effect. The
sug¬

Weekly Coal and Coke Production Statistics

age gross crude oil production for the week ended June
22, 1946 was
4,949,500 barrels, a decrease of 11,150 barrels per day from the pre¬
ceding week. The current figure, however, was 51,636 barrels per day
higher than in the corresponding week of 1945, and was 279,500 bar¬

rels

141

recreation

funds

for

nursery

projects

"war

schools,

and hospital,

police and fire assistance to boom
towns. ;v7:;77.y.

777"':

,"-rv.7

i*i

•

',

I

,

I

V

Wholesale Prices Increased 0.5%

in Week

; not

'

"Primary market prices increased 0.5% during the week ended
1946, continuing their advance of previous weeks," it was
on June 27 by the Bureau of Labor Statistics, U. S. Department
of Labor, which added that "at 112.4% of the 1926 average the index
of commodity prices in primary markets, prepared by the Bureau
was 1.5% higher than a month ago and 6.5%
above the end of the
war;"
The Bureau further reported:

June 22,
stated

,

"Farm Products and Foods—Higher prices for cattle, cotton and

v

wool

than offset

more

decrease in fruits and

a

vegetables, advanc¬

ing, the index for farm products 0.1%.
It was 2.0% above a month
ago and 7.7% higher than a year earlier.
Prices of steers advanced
with continued shortages.

A decrease in lamb prices resulted from
heavy marketing, preceding the removal of subsidies to take place
June 30.
Lemon and sweet potato prices increased seasonally.
Incrased demand, combined with lower supplies to raise the price of
white potatoes. Prices of apples and oranges were down and unions
decreased in price with good supplies.*; Cotton prices, advanced in
anticipation of removal of government controls, and foreign wool
prices moved up close to ceilings as stocks became more limited under
increased buying by European countries.

<

1

<

*

"Sharp advances in dairy products contributed to the increase
New ceilings were allowed for butter (10 cents per
pound increase) and cheese (5 cents per pound increase) while a
second increase was allowed for evaporated milk. There was a sharp
.

of 1.7% in foods.

increase in the price of cornflakes, allowed because of increased grain
costs and reduced production owing to the shortage of corn. Poultry

prices decreased because of the seasonal celiings. On the average food

prices were 2.4% higher than a month ago and 6.0% higher than a

earlier.

year,

products and foods averaged 0.2% higher during the week with the
largest advance occurring in building materials.
The price of com¬
brick moved up under new ceilings and advances ranging from
6 to 15% for several species of lumber reflected earlier OPA in¬
creases.
The price of wire nails advanced sharply. Increases in
bituminous coal prices were allowed to cover higher wages/which
followed the termination of the coal strike. Higher ceilings allowed

mon

for

phosphate rock to offset wage increases, advanced the index of
fertilizer materials. Prices of strawboard moved up under new ceil¬
ings set by OPA to encourage production.
Calf leather prices in¬
creased in response to the June 7 ceiling increase.
Prices of all com¬
modities other than farm products and foods were 0.1% above the
corresponding week in May and 5.3% higher than

ago."

a year

-

yv

'

The following tables

for June 8,

show (1) indexes for the past three weeks,

1946r Jtme 16, 1945 and June 22, 1946 and

(2) percent

changes in subgroup indexes from June 15,1946 to June 22,1946.
j'V >■

"

iV' .J s-- 5

1

•.

<?,*+ /»'

8

'%",// 1

'

7

CHANGES IN WHOLESALE PRICES BY COMMODITY GROUPS

,

!

;

;

*

(1926=100)

y-

•

_

Percentage changes to

>

•

June 22, 1946

Commodity group— -

commodities

6-22

6-15

1946

1946

112.4

Farm products

5-25

6-8

1946

-

1946

from

6-23

-6-15

5-25

6-23

1945

1946

1946

1945

Hide6

Fuel

leather

and

Textile

113.7

products™...

products

and

materials.;—

Metal and metal product*™

Building

materials—

Chemicals

and

allied

products

Housefurnishings goods—™™—
Miscellaneous commodities
Raw

materials

-

Finished products™-™..

,™_

+ 0.5

+ 1.5

+ 6.1

139.9 "

139.4

137.2

130.0'

+ 0.1

+ 2.0

+ 7.7

111.8

111.9

111.0

107.3'

+ 1.7

+ 2.4

+ 6.0

123.4

118.3"

+ 0.1

108.3;

120.9

120.9

+ 2.2

+ 4.4

108.3

108.2

y 99.1

0

+ 0.1

+ 9.3

86.9

87.1

84.7

+ 0.2

++0+:

+ 2;8

ui.O

111.0

110.5

109.4

104.8-

0

+ 1.5

+ 5.9

128.2

127.2

117.3

+ 0.9

+ 2.0

+ 10.6

95.3

+ 0.1

+ 0.3

fe+1.7

0

+ 0.9

+ 4.0

*

129.7

128.5

95.9

96.8

110.4 i 110.4

96.6

109.4

'

106.2

0

+ 1.3

+ 0.2

+ 1.4

+ 6.2

0

+ 2.7

.+9.5

+ 0.8

+ 1.4

+ 5.6

100.8

+0.7

+ 1.3

+5.7

99.8

+0.2

+ 1.0

+5.3

97.9

97.9

96.6

94.6

125.8

125.5

124.2

118.6

103.4

101.7 -t 95.3

107.7

106.6

106.2

102.0

106.3 y 105.6

105.4

104.9

105.1,-104.9

104.6

104.1

<

;

106,8

All commodities other than farm

products

96.8

110.2

?

104.4 j 104.4

97.9

™.

105.9

86.9

126.0

™_;

Bemi-manufactured articles

110.7

87.1

123.5
108.3

lighting

111.5

111.8

140.0
—

—

+ 3.5

.

All commodities other than farm '

products and

foods

PERCENTAGE CHANGES IN SUBGROUP INDEXES FROM,

,

raised

' >■

prices

ceiling

in Minnesota,
5?
and, Michigan 50c a
ton, effective June 24,, 1946. K; American life insurance comThe increase was granted to meet
panies last year paid or credited
produced

ore

the
requirements established by
j to policyholders and beneficiaries/
the Price Control Act and the gov¬ V
through direct benefits or addi^h
ernment's wage-price policy. Un¬ tions to
policy funds, 83.2 cents of
der
OPA's
industry
earnings every Income, dollar, which 1£-T
standard j a price increase of 43c

reduced output of
prices being real¬
ized are moving upward. - As the
I 8.6% more than the premiums reWeek* ended the New: York f.a.s. would cover the higher wages, it ceived frbim policyholders, it wan,®
was stated, but to take account of
equivalent was 14%c.
reported on June 26 by. the Insti¬
the- greater- costs - sustained- in tute of Life Insurance. The
bene^<|
.

,

Lead

underground operations

With refineries getting

into

tional

pro¬

in

7c allowance

addi¬

an

fit payments and additions to

•

included"

was

icy

JUNE 15, 1946 TO JUNE 22, 1946

New ceil¬ :;nearly $5,500,000,000 in 1945, com-c
ing prices of standard Lake- Su¬ pared with just under $5,000,000,- •*
perior. iron, ores follow:. Mesabi 000 in 1944 and just over $4,000,-^

for July lead approached

non-Bessemer, $5.05; Mesabi Bes¬ 000,000 in prewar 1941. Premiums
semer, $5.20; Old Range non-Bes¬ r accounted for 76.6 cents of the
semer, $5.30; Old Range Bessemer,
average income dollar of the 'life 'f
$5.45; High Phosphorous, $5.05.
( insurance companies, interest

quests

70,000
tons.
CPA . "borrowed"
6,000 tons of lead from the stock¬

pile, but intends- to replace this
asking earnings making up 20,9 cents and;6
quantity * fromJuly . imports [of Bolivian producers are
around 8,700 tons. An order is; to 645&C per - pound of tin contained other income 2.5 cents, said the<f
be issued soon requesting pro¬ in concentrates,-plus a bonus of j. advices made available by the'In-:,;
of their l%c+'to:offset higher costs,. In i stitute, which also reported: ;
"Payments to policyholders and^
"kitty" for addition, l%c more has been

set aside 25%

ducers to

August output for a

asked; should the rate of produc¬
tion exceed the 1943-44 average.
Forward* metal was nominally

allocation purposes.

increasedi last

lead

of

Sales

week to

6,713 tons* against 1,456
tons in the preceding week.
>

follows, in .cents

beneficiaries absorbed
of

less

the

month,

preceding

,

pound:

a

Bureau

can

of refined lead
dropped to 19,530 tons, which
compares with a monthly average
of 43,694 tons in 1945.
Shipments
May! production

to

amounted to

consumers

21,720

tons, reducing stocks in the hands
of refiners to 39,563 tons.

52.000

total

52:000

52.000

52.000

June

83.2 cents.

52:000

52.000

52.000
52.000

22'™J,

52.000

52.000

June 25 ™™!™™_

52.000

52.000 : 52.000

June 26

52.000

52.000

52.000

Lumber

Fertilizer Materials
Cereal

™+.

.

Products

Bituminous:

—

Coal

The spot situation in
underwent
week

no

,

Western

to * at

raised

is

Prime

least

quicksilver

dollar

yesterday.

icy reserves,: which absorbed 29.9 w
cents

Other Building Materials.

2.3

Leather

and

.

Poultry™"™™

Other Farm Products
Other

™

Foods ;

In view of higher
from

<•

•

eral

1945

:

Producers look for a gen¬

in

ob¬

™

was

dollar.

troy for two years and

House

the

a

,

bom-

a

expected to remain devoid of of¬

ers

shareholders

—Electrolytic Copper—
Dom.

0.8- Meats0.2'
0.2

.21™.

June

22

June

;

•

...

June

Labor Statistics*

Non-Ferrous Metals—

July Copper and Lead
Rise—Iron Ore Ceiling Raised

"E. & M. J. Metal and Mineral

Markets," in its issue of June 27
stated: "Demand for copper and lead continues in excess of the avail¬
able supply by a wide margin, but with production resuming at all
levels, from the mine to the refinery, consumers will obtain larger
tonnages in July than they received in June. The silver rider to the
Treasury-Post Office Appropriations bill has been passed by the
Senate.

Modification

of the Pre-^

Copper

lead
The

squeeze
in wirebars and
continues, but producers are
a gradual easing in
OPA recently lifted ceiling prices the
supply situation will take
on Lake
Superior iron ores and place next month. Production of
copper sulphate." The publication copper has been resumed at vir¬
further went on to say in part as tually all properties except the
follows:
Phelps Dodge group, where nego¬

and

zinc,

announced last March,

has been made official by the Of¬

fice

of

Economic

Stabilization.




cakes

confident that

fcjo

msu

and
1.2

York, and 44d London.

those
a

8.25

52.000

8.25

'

14.150'

--

June 26™.

!•'

14.375

,f

14.550

14.150

.™_

Average. .™„'

.

52.000

(

+;

:

:

14.150
14.150

(

stockhold-jjj ]

52.000

•:+:

52.000

:ri2

52.000

14.483

L"

Zinc

.

+

companies

stock interest.

■:! 8.25
8.25

of

the

year's

8.25

8.10'

8.25

8.10?

8.25

840

8.25

8.10

8.25

the

%

'

of the major United
They are reduced
In cents per pound.
sales for both prompt and future

J. M. & M. M's" appraisal

sales reported' by producers and agencies.
York or St. Louis, as noted. All prices are

.

.

s

consumers'

Effective
the

open

March

market

14,

and

is

the

export

based

on

quotation for copper reflects prices obtaining In
in the foreign market reduced to the f.o.b.

sales

refinery

equivalent, Atlantic seaboard.
On f.a.s. transactions we
lighterage, etc., to arrive at the f.o.b. refinery quotation.

deduct 0.075c, for

of wirebars and Ingot bars.
For standard Ingots an extra 0.05c. per
pound is charged; for slabs 0.075c. up, and
for cakes 0.125c. up, depending on weight and dimensions; for billets an extra 0.75c.
up,1 depending on dimensions and quality.
Cathodes in standard sizes are sold at a
Quotations

discount of

for

0.125c.

copper

are

for

the

per pound.

ordinary

forms

.

Quotations for zinc are for ordinary Prime Western brands.
Contract prices for
Hlgh-Grade zinc delivered in the East and Middle West in nearly ail instances com¬
mand a premium of lc. per pound over the current market for Prime Western but
not

less

month.

than

lc.

over

the

"E.

&

M.

J."

average

for Prime Western for

the previous

•;

Quotations for lead reflect prices

obtained

.<1%

%#:■

The Secretary of the Treasury
on
July 1 that the M'
$1,300,000,000 or there¬ +
about of 90-day Treasury bills to jHI
be dated July 5 and to mature
Oct. 3, which were offered on m
?3?
June 28, were opened at the Fed¬
eral Reserve Banks on July 1. \
■n
Total applied for $1,803,541,000.
Total
accepted,
$1,307,745,000
(includes- $29,689,000 entered ,on
a fixed price basis
of' 99.905 and
accepted in full).
Average price, 99.906+; equiv¬
w-

•

'

;

'

trade,

at

ir

ZV,;

announced

domestic copper prices are quoted on a delivered basis: that Is,
plants.
As delivery charges vary with the destination, the
figures shown above are net prices at refineries on the Atlantic seaboard.
Delivered
prices in New England average 0.225c. per pound above the refinery basis.
In

for

'

0

.

8.25:

;

r

;

f

Copper, lead and zinc quotations are based on
deliveries; tin quotations are for prompt delivery only.
delivered

•

tenders for

;

70.750c.

The above quotations are 4,E. & M.
States markets, based on
to the basis of cash, New

Treasury
Bill Offering

.

June 22 are: Domestic
£b.b; refinery; i4.150c; export copper f.o.b refinery 14.463c;
tin, 52.000 c; New York lead,: 8.250c; St. Louis lead, 8.100c; St.

Louis zinc, 8.250c; arid silver,

;

'

.

income

Result of

8.25

8.I0

Average prices for calendar week ended

copper

v

to

special reserves
surplus funds in 1945 were

cents

8.25

8.10
:

|

;?H

dollar."

St. Louis

St. Louis

+"'8.10

52.000 f: m 8.25
8.25
52.000

14.550
'

.

j

.•fc?

-Lead—New York

.,f,'

(14.500

*

in primary
or
producers

mium Price Plan for copper,

of

j

cent of the W

(ME, & M, I.M QUOTATIONS)

Straits Tin,
New York

14.425

14.150
14.150

*14.500

24.

Straits

'

Exp. Refy.

Refy.

notation in Its report:

prices

Deliveries to

"Additions

a

These went to the

0.1

wholesale price data, for the most part
markets.
In general,, the prices are those charged by
manufacturers
or are those prevailing on
commodity exchanges.
The
weekly index is calculated from one-day-a-week prices.
It is designed as an indicator
of week to week changes and should not be compared directly with .the monthly index.

'

New

.

4/ 10th of

in which there is

0.1

PRICES OF METALS

were

income dollar*

Foreign con¬ ferings.
;Quotations continued at 70%c,
paying from 22c to 23c

June 25--..!™

of

I

represented-2.0-cents.;
; "Total dividends to

committee represent¬

Until

\

including all salaries
and commissions, 8.3 cents.- Taxes ^

version,; has been

ing both factions.

Last year head office ex-

penses: * including: ; salaries
ac¬
counted for 4.9 cents and agency

hgihest bidder.

DAILY

^

of the

compared V

expenses,

$1.29 thereafter, against 71.11c

kets is diverting antimony ore to

pound for antimony.

cents

dollar,

:

un¬

taining here and in foreign mar¬

per

income

the same time, the war
have seen a reduction in the
portidn of the income dollar used U
for operating -expenses and taxes.
\ 1
These required only 15.2 cents of
,'Y ;
the 1045 income dollar, as com! 1
patodvwito 15^ cents of the lp41
;

passed by the Senate: dur¬

promise is reached the market is

0.1

41.2

were

years

Appropriations

Office

in; ceilihg .referred to

revision

reflection of the in-

"At

Silver

an -ounce

at

prices. The disparity in prices

a

Pay- t
policyholders and bene-:«

ficiaries

a

other pledged Treasury silver at 90.3c

and

f

reached, larger proportions.

.

At¬

upward

'

costs resulting Which would set the price of

factors, the price situation in am-

tention.

on

_

in

,

bill

'

;

timony is receiving increased

0.1

Paint and'Paint Materials™™—™™-™

Bureau

This is

ments to

ing tke: last week. .This measure,

increases

wage

0.1

™U™

The Labor Department included the following
NOTE—The

lar.

dollar

income

1941

cents

|

Thq -rider attached to the Treas¬
ury-Post

Antimony

0.4

0.3

Iron

Livestock

0.4

-™™.™

and Steel

0.8
0.7

Paper and Pulp

Fruits'and' Vegetables™™.(!.4™.;™

represent

39.5

creased number of. policies owned
and the greater number of poli- v
cies< in which the reserves -have >

9c

the basis of 83/4c.

June 20

:

of the

and

with 41.5 cents of the 1944 dollar.

foreign market is absorbing zinc
=;•.

buying

Additions to pol¬

put.

was

1944, last year
took 42.0 cents of the income dol-

Spanish sellers is not expected

:

on

II

change in

ended

broader scale develops.

The

claim.

sellers

pound,

hand,

there have been material changes
in the uses to which this income

further

that

tion;- Production is likely to suf¬

of

,

dollar*iff

for 76.6 cents. "On the other

Quicksilver

.

%++++■;':jlll

price

income

in 1944 for 76.5 cents and last yearqa
,

to be revealed until

the

credits o£ %

1941, premiums accounted for 76^
cents of the total

"

of

the

9.0

0.6

1

Brick and Tile——1—™^.
!

of payments and

,,

expected to receive added atten¬
unless

,

changed from that of prewar.. Iit-!l

or

Quotations continued at $99 to
Offerings of Prime Western and
$102 per flask. Some business Was
Special High Grade remain light
The industry was interested < in booked in forward- metal at $98
current OPA developments- After per flask. Nervousness (Over pos¬
price control has been extended, sible selling
pressure from Italian
which appears to be highly prob¬
sources continues.
Thfe position
able^ the price

fer

cents

dollar in

"The make-up of the 1945 life in¬
surance income dollar is not much ' ^

99% tin, continued
af 51.125c per pound, '•

Chinese,

the

Zinc

!_

June 24

According to the Ameri¬
of Metal Statistics,

strikes,

August

52.000

June 21 ™™™™U-

—

41,2

income

average

52.000

June 20

owing i to

July

June

.

-

this

1945 and additions to policy
re-Jn
serveis required, to meet
futur*0;^|
blaims took 42.0 cents, making

'

refineries produced
lead in May than\ in

Domestic

sumers are
-

•

duction, consumers of lead are ex¬
pected to receive close to 40,000
tons of lead in July.
Total re¬

Increases

■

Dairy Products

poIrVi

combined aggregated

reserves

the- price increase,

'

,

v

Premiums Paid By
Life Insurance Cos.

on

gross

copper

and

Copper,

per

Foods

Iron Ore

OPA

'
'

All

for

Thursday, July 4, 1946

situation in zinc is

' FOR WEEK ENDED JUNE 22, 1946

v

I'

Wisconsin,

African mines,

even

commodities other than farm

"Other Commodities—Prices of all

|

,

iron

1

•

outside of
the United States has been quite
active.
With offerings shrinking,
because
of strikes,
as at
Chile

>

-

;

.

Demand

' -i

•

early settlement* is

an

expected,

,

union +> v.

been ' concluded.

yet

However,

Ended June 22, Labor Department Reports

'>

t

of the

with locals

tiations
have

a^aghj^j^ajji

FINANCIAL CHRONICLE

THE COMMERCIAL &

142

V

*1 Jf, If

*

,

ft ne

eommon

lead

only*

alent rate of
discount approxi¬
mately 0.376% per-annum.
■
Range of accepted competitive
bids:.:;
■ +.•'■++ • .
High 99.908; equivalent rate of

discount

approximately

per annum.

discount
per

0.368%

.

approximately

annum.

0.376%

:;r

(71% of the amount bid for'at
the lowprice was accepted.)
7
;
There was a maturity of a sim¬
ilar issue of bills on
July 5 in

the amount of
.

.

Low, 99.906; equivalent rate r of

$1,311,968,000*

l.

i

.

r

%

•

V

••

Jw '{»•

■

'

1

V
.

Volume 164- Number 4504

THE

COMMERCIAL & FINANCIAL CHRONICLE

Revenue Freight Gar Loadings Daring Week
Ended Jane 22, 1946 Decreased 9,481 Gars
i\r Loading of

the

nounced

This

June 27.

week of 1945 of

week in 1944 of

Loading of-

-•?.

;

9,481

cars

18,266
21,874

Association of
was

2.1%, and
2.5%. i

freight for the week of June 22, decreased
or 1.1% below the preceding week.

•;

'XTIva pr>4:.'

•

Goal loading amounted to

179,629 cars, a decrease of 7,658 cars
preceding week but an increase of 8,017 cars above the
corresponding week in. 1945,*-: '-...v: :}*: \

and

a

747

543

955

1,004

1,302

44

42

78

1,250

2,469

445

887

366

557

4,462

1,434

1,459

397

St Potomac.

26,728

——

March

of

weeks

of

2,866,710

3,052,487

3,982,229,

4,022,088
3,377,335

2,604,552

2,616,067

May^;^?^—»

Week, of

June

l_w__,—»_——,—

626,885

Week

of

June

8—

830,126

Week

of June

of -June

Week

i

13—
0

3,154,116

3,456,465

'

884,658

v.

'

18,136,544

876i703

-

20,058

19,283

'2,137
19;585

2,514
22,682

3,347

3,833'

3,389

21,110

25,034
1,495

26,454

■

576

7,419

j

AND

RECEIVED

FROM

(NUMBER OF CARS) WEEK ENDED JUNE 22

'

Railroads,'

:

-

V" >

Total

j-'A:

Revenue Freight Loaded
Eaatern District—
Anu Arbor

'•

194G

i—,

1

.

Bangor & Aroostook—
Boston Si Maine..

i

t 1,426

8,040"

—— „

—

Central Indiana—

K;

Delaware A Hudson

j

1,057

1,966

2,371 V

7,480'

10,279

Detroit Si Mackinac

.—

Detroit, Toledo & Ironton
Detroit A Toledo Shore Line——

TotaL

2;591

2,725

118,430

133,171

Atch., Top. <k Santa Fe System.

4,614

Lehigh & Hudson River
Lehigh Si New England

2,238 f

Lehigh Valley
a

-

Monongahela

::

-

.

,

Y., N". H. A Hartford
—
(Tew York, Ontario A Western.
New York, Chicago A St. Louis—
N. Y., Susquehanna A Western
Pittsburgh 8c Lake Erie
;
:

10,858

V

9,502

9,516

2,936
5,429 1

2,259

;

3,871

4,121'

10,107:

13,688

18,078

19,391-

6,343

3,168

14,276

13,865

2,934

2,844

.

9,066

2,375

5,554

.6,377

.

8,049
3,023
;;

1,612'
7,624

1,537.

City.

2,668

273

297

2,374

2,800

2,531

27

50,862

49,404

49,185

52,823

10,814
J-.* 1,093

10,144

9,221

15,434
2,426

17,774
.3,251

13,341

14,749

f

1,207

6,505 J

6.436

294^'

437

i

,1,322,
v

6,975

*

512

-

1,980

2,236

^

6,495

7,787

6,117

-

1,007

Pittsburgh & Shawmut
Pittsburg, Shawmut A NorthPittsburgh St West Virginia-

7,799

8,631

363

'

9,123

•

328

334

95' '■/vV; 244

1,085

.1,396

363

372

1,375

5,781'

6,054

11,805

5,391

6,085

3,419

4,349

161,179

i 161,124

200,018

219,885

■V. :

v
.

:

-

,

;9,845=,

v.

•

186,878 1

TbtaL

1,97.7

2,299

1,345

1,176

1,458

1,458

646

869

2,939

4,143

8,338

7!

44

1,523
2;375
,■

1,943:

15,379

3

2,357

14,324

: 21,320

AvAA:.' 6

2

528

139,068

284

j

.

3,140

5,07ft

19,109

114,776

403".

574

783

4,965

5,001

2,754

3,18r

3,611

4,706

1,167

951'

International-Great Northern

3,884
2,205

tK. O. A G., M. V. AO. C.-A.-A.,
Kansas City Southern-

1,290 ;
3,466-,:V'

5,305

Louisiana A Arkansas

2,413

3,604

Litchfield A Madison

401

Missouri A Arkansas

162

Missouri-Kansas-Texas Lines.

,€r,067

Missouri pacific

18,429"

"

8t.

.

.2,803
1,360
12,031

»

'

::

184

10,090
3,186.

Oklahoma A Gulf

632

•<654

1,259

1,088

46,392

24,239

28,652

8,604

183

111

65

81

appointed

34

16

21

61,249

72,459

prominent I Washington
attorney
and
former
Chairman
of
the

73,312

75,766

;

"

&

Indiana

2,040

2,012

12

4

6,655

6,103

1,464

1,610.

Central R. R. of New Jersey—

6,589".

Cornwall.

427'.

Cumberland & Pennsylvania——

248

Llgonler Valley
Long Island
Penn-Reading Seashore Lines—
Pennsylvania System
Reading Co
Union (Pittsburgh)
Western Maryland
Total

46

6,853
509 1

.

180
.

'

89"

6,770
555

>

256

r

?
^

-

132

:

,

•

'

15,950

19,293

62

53

8

12

>

•6

37-

..

tlncludes Midland, Valley Ry.'-and Kansas,
Ry. only in. 1944. and, ftlsoi Oklahoma. City.-Ada<-Atoka, Ry. to- 1945
"

-

represent

83 %

.

REPORTS—ORDERS, PRODUCTION,
OrdeTs

Perlod."

">

2:

Mar.

9

Tons

178,443
157,227

—

Mar. 16—
Mar. 23

;

Mar. 30.

6

225,192

April

13

154,235

20—.

14,668

19,408

4,463

180,640

4,011
191,405

4,146

193,822

*

64,809

64,343

April

24,2^0

26,688

Apr.

5,270

7,291

10,278

12,970

154,633

169,110

148,161

May-

4

229,120

May

11

May

18

May

25

June

34,295

Norfolk St Western

25,830

21,242

21,090

4,880

4,179

4,603

65,005

27,238

52,659

28,808

65,501

14,159

June

6,918

7,263

June

1,692

2,606

14,666

23,276

-

of thev total

the Tax
Court; and
Fisher, prominent Bal¬

attorney and former Chief
Public Finance Branch of

Military Government

Germany.
.4

Lumber Movement—Week
Ended June 22, 1946
V
According to the National Lum¬
ber

Manufacturers

Association,

lumber

| week

;

.

::

»•:

'

Percent of- Activity
Current Cumulative

551,081
'538,572 V

•

539,100

167,541

549,928

164,562
169,627

607,799
591,661

167,627
156,291

V

174,501
165.911

98

93

99

94

100'

94

99.

A

V '-A

V

566,152

101

.A 553,274

95

605,288

101

95' L

96

':::

-

V

131,133.
142,001

8

186.073

15

136,211
157,746

For the

96, ■'
96

of

96.

591,206

162,563

595,427

152,203

V

"v! 96

97'

V:

92

:

565,225

93:
1

*

-

139,693
160,607

591,496

96

?

-'161,240

567,087

98'

163,148

V, *96

560,916

97

567.068

85

"V

•

J

96
96

.

'

■

"96

Notes—Unfilled orders of the prior
week, plus orders received^ less production, do
necessarily equal the unfilled orders at the close;
Compensation- for delinquent
reports, orders made for or filled from
stock, and other items made necessary
adjust¬
ments of unfilled orders.
'
:
•

•

-•

,

I..

I

by

4.5%;

or¬

ders by 3.1%. •

...96..:.

;

production

.

96
;

year-to-date, shipments
reporting identical mills ex¬

ceeded

'

'

159,370

c

reporting softwood mills, un¬
are equivalent, to 29
days' production at the current
rate, and gross stocks are equiv¬
alent to 34 days' production.

.95

99
101

-

of these mills

For

95 '

100'

:.V

new orders

were 9.3% below
production. Un¬
filled order files of the
reporting
mills amounted to 81% of stocks.

filled orders

not

24t028

retired from

;'M/:

MILL ACTIVITY

533,794

158,229
164,267

•

155,747

1

22

:

143,946

27

161,122

167,243''

133,509

April

.

.

169,355

2,042

89,690

a

a

Remaining
/;:> Tons:

Tons

f

198,985
i

4,625

16,440

Production
'

1,867

15,455

Hamel,

States

Morton P.

■in

Unfilled Orders

Received

4,543

Pocahontas District—




';

1,774

Chesapeake St Ohio

TetoL

''

1946—Week Ended
Mar;

June

Virginian—

,

1,664

87,258

Mr. >

are:

already

„

1.831

16,341

members

shipments of 420 mills re¬
figure which indi¬
cates the activity of the mill based on the
time operated:
These porting to the National' Lumber
Trade Barometer were
figures are advanced to equal 100%, so that
8.8% be¬
they represent the total
low production for the week end¬
industry. ^
' 1
'
ing June 22, 1946.
In the same

production, and also

1,690

15,388

Council

of the

industry» and its program includes a statement each week from each
member of the orders and

1,642
87,869

,

,The

timore

We give herewith latest figures received
by us from the National
Paperboard Association, Chicago, 111., in relation to
activity in the
paperboard industry.

1,482

•

.

;

Board of Tax
Ap¬
peals; Charles P. Smith, recently

■*

Weekly Statistics of Paperboard Industry

*

4,445
1,486

-

Cambria

being handled

by; the Audit Review Division of
the Income Tax Unit in
Washing¬
ton.
*
•
" •
■
;

.

.

48,338

Council begins

5,645

,

The members of this Association

the

operations, there** will be trans¬
ferred to its jurisdiction all
Sec¬
tion 722 cases now

the Offiee of

.

regarding

i,

,

the

6,658

38.

NOTE—Previous year's figures revised:

as

7,366

tlncluded in Atlantlte Coast Line RR-.
and 1946.

•

.

soon

4,732

"

493-

relevant 'facts

United

♦Previous week's figures.

:.A.! :-;V:
39,719

having such
a claim
pending in a field office is
requested to expedite its case
by

5,758

34
v

many instances as possible.

-8,887

227.

■

as

Each field office has
organized a
Committee on Section 722 claims
and each corporation

5,448

5,264

67,390

in the past in an effort to

agreements with taxpayers

7,322

;V

TotaL

in

4,956

•

9,968

Weatherford M. W. A N. W.

as

reach

As

45^

5,290

19,644397

-

cases

17,730

3,689

8,891
;

359

4,748
14,319
*

191'

•;

3,025

Wichita Falls A Southern

1,629

V

the

-

::v 1,765

,

Texas A New Orleans.
;.

2,894

16,631

V

"

Louis-Southwestern.

3,265

1,339

7,620

17,101l

facilities,

Field offices of the Bureau will
continue to handle Section 722

all

2,070

141

6,680

■il

| oiher 3!

in which taxpayers and field
agents of the Bureau have reached

case.

3,092

V

J Among.

Council is expected to have a
Conference Group to
attempt set¬
tlement of - disputed
cases,
and
also a Review
Group to examine

3,945

5,956.
3,888 A
315

Texas A Pacific

STATISTICAL

Akron, Canton A Youngstown.
Baltlmore St Ohio
—.
Bessemer St Lake Erie——1—i

,

pending in the Tax Court of the
:United States.
'SSsSS':;sV-r;

2,334

1,715

202: :

re¬

attempt settlements
without Court trial in the
approx¬
imately
600
cases
which
are

fully informing the Committee of

946

•

:

318-

.

Foremost of these, is

proposal for the Council to

0

9,911

293

2,300,

140,922

98
737

»O'

35,005

*

585

2,028 f

de¬

examine and

agreements.

616
'

•

563
v

and

being

2,004
*

123

l:S:

are

cases

2,053

1,809'
473

■•'^15,284=

16,044

-

131,293

:

-

897
v-v; :

403"

733

1,326

933
1,833;

-

35,862

-171.

•

-730«

A

O.

13,545

Burlington-Rock Island.

26

2,033

.

1,801

573.

3,668
"

leuthwestern Plstrict—

8,599

33

:

.

6,290

_

Allegheny District—-

935

7,353

-

919

=

V 1,058 '
396

Wabash

5,007

-

'

Rutland

Wheeling Si Lake Erie—

5,190

V

5,234

28

"

Pere Marquette__

1,494

34,470

Total.

909

14,963

3,182

469 V

.

6

Union Pacific System—

758

13,632

2,790;

1,759

,

3,142
14,799

3,429

608

Western Pacific.

12,000

2,762
-

a

i

*

607

2,463

83

18,629

•

plans

veloped for early consideration of

14,815

:

1,387

7,857
V

72,810

be

;

•the Council.

'

489

Fort Worth A Denver

17,010

2,724

,

1,711

61,377"

134,947

415

Denver A Rio Grande Western
Denver A 8alt Lake—

2,664

16,076

211

2,286

>

144

•; 1,124*.
3,899

316

13,692

.148:
r

<'■,'••' 191:

52,979

_

New York Central Llnea—.—
H.

2,123
11,501

8,821

•

4,016

63

2,392
11,102

1,861

407

Grand T
Trunk Western

1,066
4,919

7,884

4,484

•

3,560

191

•

2;51D

2,893^:

A

:

10,162

10,559

44

590

3,693

.259

1,994

46,805

522

29,657

11,089

13,420

3,489

5,229

494

.

Quanah Acme A Pacific.

m

3,516

189

3,586

St. Louis-San Francisco.

4T

1,447^1

,

for
outstanding experi¬
law, accounting and eco¬

in

procedural

2,679

30,851

4-

315*

12,572

2,459"

will

Meanwhile, administrative

:

91

2;442

-1,455

;1,821

136v

early

"

1,139

28,457

409

1,240

*843-

'

/■

an

announcement

nomics,

99

8,664

u>0i4^^

325

1,575

274

13,064

:

1945

9,790

125;

'

978

7,108

285

1,626

v

.12,169

Montour—.

;

,

2,034
329

.

Erie.

v,

•

7,711

.

498

;

1

4,987;.

r

8,479

1946

11,868

113

220

V:'i>yr24%

1,119

4,900

—

Delaware, Lackawanna A Western.

Maine Centra]

-1,056

;

33

Central Vermont

'

■v

>,6,656

1,220

.

/

Connections

1944

282

V11,439

...

Chicago, Indianapolis & Louisville

1945

369:

8,489

an

Rev¬

>::

' With a view to such

ence

Central Western Dlgtrtot—

,

Bureau said:

selected

632

6,415

!

The advices

Internal

| composed of fifteen- individuals

417

x,

the

shortly of the full member¬
ship of the Council, which will be

3,960
:

587*

8,985

1,660

Northern Pacific^,

11,064

332

•

7,220

Toledo, Peoria St Western.

Received from

8,585

-3,601

'v

731

V

,

3,062;

3,803

from

made

15,400

10,494:
:

Minn., St. Paul Si S. S. M..

877,493

Total Loads
,

22,114^

3,180

Southern Pacific (Pacific).

y\

:

2,669

Peoria A Pekin Union.

CONNECTIONS

•2,274V;^

>

■r

12,855

2,311

Gulf Coast Lines

REVENUE FREIGHT LOADED

19,150

Ishpeming.
Minneapolis & St.-Louls

North Western Pacific.

thp week ended

117,506

449

the' separate railroad® and systems for the week ended June 22, 1946
over

21

\ 106,866

422

The following table is: a summary of the freight carloadings for

During this period 58 roads reported gains

13, page 3262.

June

121,083

*488

873,174

Juiie 23, 1945.

,

426

810,698

880,311

124,055

>

23,88f

3,441,616

20,387,991

June

757
985

364

Illinois Terminal—.—.
Missouri-Illinois.

;

•.

20,384,599

25,419
j,'.*.-.

L061-

start,S
—

Utah

Total

1,242

761

...

ex¬

cess
profits taxes under Section
722 of the Internal Revenue Code.
Reference to the crea.ion of the
Council appeared in our issue
of

;

8,862

123

21,926

Nevada Northern

*:->

rations for reduction of their

10,624

24,736

645

,

125

the

of Internal
Revenue to
administer claims filed by corpo¬

*

462

3,916,037

873,322

V,

858,437

i

8,193

19,074

Green Bay & Western.
L4dte Superior &

3,275,846

837,886

:

,

867,918

22_«j<Litto>«n»w.»—•>

;
<

& 9,791

Council,
that

Bureau

Dtstrlet-^-

Soytherni-^^,^^^

gf April—

1,503

491

v

21

The Council is the
agency
which has been set
up within the

enue

128,801

,

—

Colorado A Southern

weeks

582

v.:

'

.

401

9,615
23,385

A

=

A: 24,995

737

-139:

.

ported decreases compared with 1944 except Eastern, Pocahontas and

weeks

509

10,217

Spokane International—
Spokane. Portland & Seattle.

All districts reported decreases compared with the corresponding
week in 1945 except. Eastern, Pocahontas and Southern and all re¬

3,158/700

412

448

11,674

V

Tax

June

-weeks.

1,040

3,699

Great Northern.

•

1944

16,882
12,302

1,002'

1,505

Bingham Si Garfield.
Chicago, Burlington & Qulncy.
Chicago A Illinois Midland
Chicago, Rock Island & Pacific
Chicago A Eastern Illinois.

1943

9,743

160

3,098

Alton.

3,003,655=

24,891

219

298

—

cor¬

1946

26,090

26,064

2,025

cars

2,883,620'

4,509

3,303

v

January—.
4 weeks of February

3,684
14,281

2,050

—

increase of 858 cars
increase of 3,558 cars above the

of

4,336

Profits
on

expects to begin active
operations within the nextr few

110

29,292

■

Excess

Council

792

3,607

—

corresponding week in 1945.
I Gro loading amounted: to 62;373 cars, a decrease of 4,002: cars below
the preceding week and a decrease of 12,250 dars" below the' corre¬
sponding'week in 19451"
;

weeks

4,604^
27,403

the

announced

2,509
••V,

Norfolk Southern-

Chicago Si North Western—
Chicago Great Western
Chicago, Milw;, St. P. St Pac
Chicago. St. Paul, Minn. & Omaha——
Duluth. Missabe & Iron Range
Duluth, South Sltore & Atlantic
Elgin, Joilet & Eastern
Ft; Dodge, Des Moines Si
South——

cars an

CokeVloading amounted to 12^141 cairs hri increase' of 834
above the preceding week,,but a decrease of 1,141 cars below the
responding week in 1945,.

'

Charles

1,150

253

-v^EirHwresten!

ing of Livestock for the week of June 22 totaled 9,046 cars a decrease
of; 1,018 cars below the preceding week,; and a decrease of 730 cars
beijow the corresponding week in 1945.
above the preceding week and an

459

Joseph D. Nunan, Jr., Commis¬
of Internal
Revenue, and
D. Hamel, Chairman of

sioner

;

In the Western Districts alone load¬

products loading totaled 48,680;

.

1,265
>:•

504

4,964

——

i

445

Total

loading amounted to 12,277 cars a decrease of 1,383
below the preceding week and a decrease of 1,245 cars below

Forest

/■'

25,822

Wlnston-8alem Southbound.

below the corresponding week in 1945.

the1, corresponding week in 1945.

v

94;;' ^

——

cars

,

492

the

decrease of .8,508

119

1,226
.»

Tennessee CenfraL

Livestock
cars-

4

253

112

——*

Seaboard Air Line

corresponding week in 1945. In the Westernf Districts
alone, grain and grain products loading for the week of June. 22
totaled 32,136 cars, a decrease of nine cars below the preceding week

5

3,124

346

A'V

Mississippi Central.
Nashville, Chattanooga Sc St. L.—

Richmond, Fred.

"

below

.4

1,541

3,620

224

—

Southern System..

Grain and: grain product® loading totaled 45,328 cars, a decrease
of 210 cars below the preceding week and a decrease of 11,545 cars

t

1,659-

1,735

261

Piedmont Northern

below the

4,847

1,605

j' v

102

Macon, Dublin & Savannah

>10,940

4,592

350

381

Louisville St Nashville

8,784

3,573

cars

1945;r#-;.: "*

t

12,076

1,810

Ullnols Central System

2,311

t

561

=

j

Council Operations

286

;

1,945

•A

' 892

.

4,C84

1,077

Georgia Si Florida

>870

•

t

533

—

Gainesville Midland

183

1945

<

4,442

Florida East Coast

Loading of merchandise less thane carload lot freight totaled 128,331! cars an increase of 2,253 cars above the preceding week, and an
increase of 21,403 cars above the corresponding week in 1945.

k 3

—

315

A."::

685

; v:

1946

12,672

Columbus A Greenville——.
Durham A Southern-^

revenue

low the corresponding week in

.

f

Connections

1944

14,053

,

Clinch field

416

,

;i::;,x756>:A-

Charleston Si Western Carolina—-

A"

•

Excess Profits Tax

Received from

1945

403

——

Central of Georgia

IMiscellaneous freight loading totaled 369,678 cars, a decrease of
-below the preceding week, and a decrease of 25,061 cars be¬

•i 173»

A Northern—

Atlanta, Birmingham & Coast—

corresponding
decrease below the same

a

Alabama, Tennessee

Atlantic Coast Line

an¬

below the

decrease

a

cars, or
cars or

American /Railroads

Total
Revenue Freight Loaded
1946

Atl. A W. P.—W. R. R. of
Ala

^revenue freight for the week ended June 22, 1946

totaled -658,437/-cars
on

Railroads
teaihwra District—
'

14?
Total Loads

I.^J^

Compared to the
responding

week

average

of

cor¬

1935-1939,

production of reporting mills

I 19.3%
15.3%

above.

above;

shipments

above;, orders
-

were

was

were

14.8%

.

■>*" ■ H nlf I]

^r,(Ti '~TH

,

j,

v->:^;;.n/'

_,

,.

THE COMMERCIAL & FINANCIAL CHRONICLE

14*

Items About Banks and Trus!

Companies

(Continued from page 133)

against $31,250,903 on March 31
last and $37,461,770 a year ago;
The

showed

statement

that

the

book value of bank buildings

,

•

/

$2,000,000 to $2,034,500; to reduce

he

$100

elected

was

President.

the par value of the stock from

Assistant Vice-

an

Mr. Driver is attached

posit. Company; ,The office, ho
said, has been established to pro-?

Avenue and 22nd Street with

vide more convenient service for

70th; Street."

customers in
this section and extends its facili¬
ties to others Who may find the

over

had
been reduced to $2,500,000 from
the previous figure of $3,000,000,
at rwhich they had been carried
for
the.past year.
Undivided
profits • of $1,614,287 were shown,
comparing
with
$1,667,075- on
March 31 and $1,466,976 on June
30, 1945/
Capital and surplus
were unchanged at $8,200,000 and

the

$5,600,000*/ respectively.

new

The

.

the

bf

statement

Phila¬

delphia National Bank, of Phila¬
delphia, Pa., for the period ended
June 29, 1946, shows deposits on
that date of $705,692,003, consist¬
ing of $87,633,595 of U. S. Treas¬
ury deposits and $618,058,408 rep¬
resenting all other deposits. This
compares with deposits of $764,124,700—$159,904,981
of
U.
S.
Treasury deposits and $604,219,719
covering all other deposits—re¬
ported on March 30, 1946. Total
resources amounted to $769,186,398, compared with $827,720,601;
cash and due from banks aggre¬

>

in October, 1945.
When he re¬
joined the bank on Oct. 15,. 1945,

to

Guaranty Trust Company of to the bank's New England divi¬
Brooklyn, N. Y.; as of June 28,
made public July 1, showed total New York opened on July 2 a sion.
branch
offic in Rockefeller Cen¬
deposits of $263,835,049, compar¬
ing with $270,113,996 on March 31, ter at 40 Rockefeller Plaza, north¬
DeCoursey Fales, President of
It the Bank for
last, and $247,094,849 on June 30, west corner of 50th Street.
Savings in the City
1945;
brings
to
three
the
branches
o£
of
New York, announces that a
Total resources were $281,Guaranty
in
New
York
City;
the
new
branch
office
of the bank
480,702, comparing with $287,271,979 on March 31 and $263,825,353 others are at Fifth Avenue and was opened at the northeast cor¬
a year ago, " Cash
on hand and 44th Street, established in 1898* ner of Broadway and 86th Street
due from the Federal
Reserve and at Madison Avenue and 60th on July 3.
J. Milton Cartmell,
Bank and other banks was $58,- Street, opened in 1918. The bank's Assistant
Vice-President, is in
517,415,
against $48,218,634 on main office is at 140 Broadway charge. The Bank for Savings is
March 31 and $54,435,485 on the and foreign branches are in Lon¬ the oldest savings bank in the
corresponding date in 1945, while don, Paris and Brussels. J. Luther State and July 3 is the 127th an¬
holdings of U. S. Government Cleveland, President, said that niversary of the day in 1819 when
securities were carried at $176,- the complete services of the bank¬ the bank pioneered savings bank¬
812,865, against $190,996,504 and ing, trust and foreign depart¬ ing in New York.
The original
$153,970,978,
respectively.
The ments are. available at the branch, office was a basement room in a
company reported total loans and
including safe deposit vaults of public building in City Hall Park.
bills
purchased of
$32,630,826, the affiliated Guaranty Safe De¬ The main office is now at Four/h

;

gated $186,161,160, compared with
$186,950,970^ U. S. Government
securities, $440,099,408, compared
/with $483,054,501; State, county
and % municipal
securities were
$13,097,392,
against
$13,862,392;
other

it i es,

s e cur

; $34,147,926,

against $38,788,378; loans and dis¬
counts, $91,069,670, compared with
$98,566,888. The capital stock of
the bank and the surplus at the
end of

June both

remained

un-

changed at $14,000,000 and $28,/7 000,000, respectively.
Undivided
profits were $13,611,690, compared
with $12,986,136 at the end of
;7

An increase of $7,548,522 in de¬

other thanU.

S.

Govern¬

ment deposits during the first six
months of 1946 is shown in the
statement of condition as of J une

29, 1946, issued by the Corn Ex¬
change National Bank and Trust
Company,
Philadelphia.
Loans
and bills discounted totaled $59,971,435, an increase of $3,591,846.
Total deposits as of June 29, 1946,
were
$274,996,870, compared to
$298,358,865 as of Dec. 31, 1945,
with U. S. Government deposits
declining $30,910,516.
Total re¬
sources
of $298,678,921 included
$60,956,569 cash and due from
banks and $159,932,516 in U. S.
Government securities.
ital funds

Total cap¬

of $18,384,651

on June

1946, included capital stock
$5,687,500; surplus $10,000,000 and
undivided profits $2,697,151.
Re¬
serves totaled $1,783,224.
...•
29,

Four

the

members

National

York

retired

accumulated

of

the staff of

City Bank of New
June 28, having
total of 206 years,

on

a

four months active service.
are:

Frederick

B.

They
Beach, Halsey

G. Bechtel, Charles H. Clark and
Charles. H. Mills.
Mr. Beach is a
veteran with the

longest service—
52 years, nine months.
Mr. Bech¬
tel and Mr: Clark, Assistant Cash¬
iers, have each been with the
bank

51

six months,
Mr.
Mills, Head Receiving Teller, has
a

many

location advantageous in

branch

Robert W. Ste¬

are:

phens, ■Second
Vice-President;
John R. Currier, John F. Gately,
Reidar E. Gundersfen and Law¬
M.

Pritchard,
Assistant
Treasurers; Kenneth S. Stocker,
Assistant Trust Officer, and Al¬
fred W. _C.
Spindler, Assistant
rence

:

William M. Stevenson,
Assistant Treasurer, will be in
charge of the branch of Guaranty
Safe Deposit Company.
Secretary.

years,

service record of 50
years, seven

months.




;

other branch at Third Avenue ahd

200.000

luncheon

was

tendered

on

a group of 11 officers
associates to Hiram G. Dis-

June 25 by
and

Custodian,

Vault

brow,

of

occasion

his

of

resources

The

bank

serves

depositors

and has
quarter of a bil¬

a

lion dollars.

Dudley Olcott 2d, banker and
financier and former Vice-Presi¬

on the
retirement from

retired

been

390 years.
Later, a re¬
ception was given in his honor
by his associates of the 40th Street
was over

Mr.

and Madison Avenue office.
Disbrow

joined the trust company

in November, 1907,
Assistant Manager,

and served as
Foreign De¬
he was Vault

Later

partment.-

f

Company of New Yprk,
announces
the
appointment of
George
E.( Post
as
Assistant
Comptroller, Mr, Post joined the
Auditing
Department
of
the
Chemical Bank in August, 1922.
.

In
a

July, 1942, he volunteered, as
private in the U. S. Army and

entered
He

was

OCS

in

October, 1942.
commissioned a Second

Lieutenant in' the Field Artillery
in

January, 1943, and a First Lieu¬
tenant in December of that year.
He returned to the bank in Au¬

gust, 1945.
-

Following the regular meeting

of the Board of Directors of the
Bank of the Manhattan

Company
27, F, Abbot Good¬
hue, President, announced that
William Driver, Jr., formerly As¬
sistant Vice-President, was ap¬
pointed Vice-President. J. B. Reboul, formerly Assistant Treas¬
held

on

urer,;

June

was

appointed

Vice-President.

houn, Jr.,

Assistant

Patrick N.

Cal¬

appointed Assis¬
tant* Treasurer and 'A. M. Egolf
was appointed. Assistant Auditor.
was

Prior to joining the Bank of the
Manhattan Company Mr: Driver
was with
the Colorado National
Bank

of

Central

Denver, Colo.* and the
Hanover

Co., N. Y.
of

Bank

&

Trust

He joined the Bank

the| Manhattan

Company

in

March; 1936, .and in December,
1933, was elected Assistant Cash¬
ier.
In April of 1944 he entered
the Military Service as a private
and was discharged as a .Captain

basis

for

one

of

The

United

States

*

10

share of
k

f

Savings

the close of the Civil War.

"News," reporting
jubilee of the bank, said:

;

the

born in

was

Albany, the

of Frederick Pepoon Olcott.

father

The bank

.

originally

German

changed

its

name

$24,000,-

was

Savings

called

Bank,

but

February,

un

1918.t^r;,^r.^. ^ V
1'

Christopher iWiederimayer

the

President

first

After

him

of

the

was

bank.

Gottfried

came

Ktueger*

who served for more
than quarter of a century. He Was
succeeded by John. Fischer,, who
served
for
many
years.
Mr,

ing up

the

pany

was

bank

for

Olcott

Dudley

years.

educted privately and

Vice-President

the

of

bank in 1907, serving

in that ca¬
pacity until 1920. After resigning
as Vice-President of the bank, he
became a partner in the banking
firm of Billings, Olcott & Co.
On June 25 the stockholders of
the

Lafayette National Bank of
Brooklyn approved the recom¬
mendation of the directors to in¬

the

capital from $850,000
to $1,000,000 through the issuance
crease

of

additional

shares

of

stock

at

the par value of

$20 per share. A
previous item in the matter ap¬
peared in our issue of June 13,
page 3265.
_

rn—A

Philadelphia,

of

plan,

of

an¬

four

employes

total of 179 years of service

with

a

and

the retirement, under its

with the bank.

„

many

nounces

son

Central Trust Com¬
was President of that

was

Bank

Title

His

instrumental in build¬

was

They are: Frank
Treston, Assistant Treasurer;
L. Deeter, Trust Officer;
Frederick Habicht, Mortgage De¬
partment, and T. Sparks Bishop,
teller.
Mr. Habicht, who is Pres¬
G.

Aaron

ident of the bank's Pioneer

Club,

is the

longest in point of service,
having been with the bank for 55
years,
Messrs. Treston and
Bishop both have 44 years of
service and Mr. Deeter 36 years.
Land
Title
Bank
and
Trust

Company reports net operating
earnings of $2.58 per share for the
first six months of 1946, after al¬

lowing
for
taxes
and
other
charges.
Net profits from all
sources equalled $4.17 per share.
dividends

Two

share totaling

that

during

writedowns
serves,

40

of

cents

per

$120,000 were paid
period and, after

and transfers to

C.

$327,000 was added to un¬

Dime Savings

Bank of Brooklyn,
Philip A. Benson, President of the
bank, announced on J une 26, it is
learned
from
the
Brooklyn
"Eagle," which further reported:
Mr.

.

ciated
1917

Johnson

has

with-"The

and

held

has

been

asso¬

Dime"

since

the

office

of

A

Vice-President,

Assistant

an

Vice-President and four Assistant
Cashiers
the

were

elected

Directors

of

on

the

July 2 by

Corn

Ex¬

change National Bank and Trust
Company of Philadelphia.,
The
promotions were effective July 1.
Richard A. Delaney was advanced
to Vice-President.; He had been
an Assistant Vice-President since

Other pro¬
motions announced include: Aus¬

January, 1944, and has been with

tin

Brown was advanced

Treasurer since 1932.
C.

Cheshire, Vice-President
and Secretary; A. Edward Scherr,
Jr., Vice-President and Treasurer;

the" bank

since 1911,

funds

obtainable

all

are

capital

common

institution

Charles B.
to Assistant

from

which

is

total

$2,000,000

in 1935 to $12,500,0.00
(both approximate) in 1946;
77/2/ Lending limits, under State
statutes, are restricted by the ag¬
gregate amount of capital and
surplus only (10% of the total).
The increase from
the. present
total of $600,000 to the proposed
$900,000 will better enable your
company
to service the ' sound
resources

credit needs of

our community.
Putting the foregoing proposals
into effect includes the following:
(a) Certificates for full shares
and scrip certificates for frac¬

shares

tional

Will

mailed

be

delivered to those entitled to
ceive them under the

of
re¬

plan;

(b) Certificates for full shares
will be issued in the

name

of the

shareholder;
7
s ^ .
(c) Scrip certificates for frac¬
tional

shares

will

be

issued

to

"bearer"; 7* ::7,7.7 * * v
' /■'■': ?v■ ,7"
(d) Scrip certificates will beaf
no dividend nor have any voting
power.
They may be exchanged
for full shares when presented in
equivalent
amounts—i.e.,
three
bearer certificates each represent¬
ing a one-third right of conver¬
sion into a full share, but this
privilege will expire and become
void after 3 o'clock p.m., July 22,
1946; /Vp':
*. 7,7v'/
7; 7,7-;-'7.-- (e) The number of shares of
said common stock represented b.y
the
total
scrip Outstanding at
3 o'clock p.m.f July 22, 1946, will
be sold at public or private'sale.
The proceeds of such sale, after
deduction of any expenses, will
be distributed proportionately to
the holders of said outstanding
scrip certificates, upon surrender
thereof.
7.£&>i£:k
.

The

consolidation,

J|f

effective at

the close of business on June 15.
of

been

has

Johnson

basic

re¬

divided profits.

George

propose to
suplus account from
$300,000 to $500,000 and continue
an undivided profits account of at
least
$120,000, thus creating, a
capital
structure
of
$1,020,000.

warranted by the growth of the

A mutual institution, the bank
now
has
30,000 depositors and

the

$10

also

earnings of the company.
There are two underlying
reasons for this proposal:
The 77-1. It provides an increase in the

Newark

assets of approximately
000.-'

directors

increase the

These

pension

He

The

from

anniversary on June 24.
The institution began business on
June 24, 1871, a few years after

:

tional shares with par value of
each.
;/■'//;/.'/r7:; Wfi'

its

75th

July 4,

to our articles of incorporation to
permit the issuance of 10,000 addi¬

Bank, of Newark, N. J., celebrated

Company,

elected to the newly created office
of Executive Vice-President of the

&' Trust

the

on

new

the old.

taken.

40th Street and Madison Avenue
.

stock

shares of the

1937, it was
stated in the New York "Sun,"
from which the following is also

Custodian in the main Office and
offices.

value

since

the New York Trust Company on

July 1 after 39 years of service.
The combined length of service
of those attending the luncheon

share to $10 a share and
the-old $100 par
new $10 par

a

exchange

value stock for the

Fischer was succeeded by William
dent of the old
Central Trust F. Hoffmann in October, 1930, and
Company of New York, which be¬ Mr. Hoffmann, in turn, was suc¬
came the Central Hanover Bank
ceeded by the present President,
& Trust Company, died on June Benjamin Fairbanks, in 1933.
28.
He was 72 years old and had

became

A

an¬

meeting

personal and business banking
requirements.
The office is un¬
der the
general Supervision of
Alfred C. Howell, Vice-President,
as are the other New York City
branches.:
Other officers of the

Frank K. Houston, Chairman of
the board of the Chemical Bank

March.

posits

bank's

Thur:
Thursday,

the

First

National

Bank

of

Peoria, 111. (capital, $660,000), and
the First Trust and Savings Bank
of Peoria (capital, $200,000), un¬
der the charter and title of The
First National Bank of Peoria is
announced

by the comptroller of
The enlarged in¬
common
capital
stock of $660,000, divided into 33,000 shares of the par value of $20
each, and a surplus of $1,200,000.
the

currency.
stitution
has

/•7/i

Liverpool Cotton Exchange

Assistant Not to
Reopen
Cashier.
He has been with the 7 Incident to the Government ansince
1931.
The
newly
Alfred R. Marcks, Assistant Vice- bank
Assistant
Cashiers are: ton
President;
Robert, D.
Barker, elected
Exch., which closed during
Assistant Vice-President; Clinton Edwin H. Krall, Kermit L. Benfer, the
war, will not be reopened,
L. Miller, Assistant Vice-Presi¬ J. Randall Cusworth, and James W. S.
Hannay, a former President
dent; Ray C. Shepherd, Assistant O; Whitall,:7;/b7/■ of the Liverpool Cotton Associa¬
Vice-President; Thomas S. Sites,
tion, said on June 26 that closing ;;
/The Board of Directors of the of the
Assistant Vice-President; Gustave
Exchange will mean an an- \
Real Estate Trust Company of
T. Andren, Mortgage officer; Ger¬
nual loss to the city of £ 3,000,OOP
ald J. Peffert, Assistant Comp¬ Philadelphia at its regular meet¬
troller;'
,\7 ■; 7f!/7/
ing June 21 elected Joseph E. ($12,000,000). Associated Press ad¬
Greene
Vice-President
of
the vices from Liverpool (June 26),
The

Albany,

N.

Y,

"Times-

Union" of June 29 reports that the

stockholder^ of the Peoples Bank
of

Johnstown,

N.

Y.,

voted - on
June 28 to merge with the State
Bank of Albany and later stock¬
holders

of

approved

the

latter

institution

the

The

merger;
"Times-Union" further said:

''

Vice-President

from

Mr. Greene has been in the New York "Journal of Com¬
employed by the company for 18
merce," from which we quote,,
company.

years,

recently in the capacity of

Assistant Vice-President and As¬
sistant

Trust

Officer.

7; 77/7

also stated:
Mr.

Hannay

cited

Association

figures showing annual overhead'
With respect to plans for in¬
expenses of 500 members and 184/
creasing the capital of the Capital
: 7
Bank & Trust Co., of Harrisburg, firms, and salaries and wages.
"If

the

market

Under the terms of the merger,
it will become effective upon the

Pa., proposed by the directors on
March 7, the stockholders were

filing of the necessary documents
with the State Banking Depart¬
ment today.
Thereafter the State
bank
will
open
a
branch-in
Johnstown under the name, "State
Bank of Albany, Peoples Branch."

asked, through President W. E. to members and
Liverpool," he
Burns, to approve a share divi¬
declared in a speech.
"I believedend at the rate of one -share for
each three shares owned.
The that it will eventually be the

At the

same

time, stockholders

the

State

bank

crease

theic

capital stock

of

voted

company's advices to the share¬
holders also said:
This will result in an

increase

again it is

means

of

a

never

opens,

definite loss, not

only

bringing down the cot¬

ton trade of Lancashire and mak¬

ing it a secondary business in thein¬ of capital from $300,000 to $400,from 000 and necessitate an amendment export trade of the country."

to

b