Full text of Commercial and Financial Chronicle : July 5, 1945, Vol. 162, No. 4400, Section 1

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

1

!n 2 Sections-Section

ESTABLISHED OVER 100 YEARS

Fina! Edition

Reg. U. S, Pat. Office

Volume

New

Number 4400

162

Senate Group by
14-4 Vote OK's

Which Would Have

Postponed Fur¬

ther Congressional Action on

Agree¬
Pending International Trade

ments

Conference.
WASHINGTON, D. C., July 3—
By a vote of 14 to 4 the Senate
Banking
&

Predicts

for Gold.

and Bickering

'

C

ittee

o m m

today
B

r

Woods

with

lation
few

en¬

a

were

A.

gene

k i n,

o

By DAVID

a

President, Brotherhood of Locomotive

Employment Requires That the Various Segments
of the Economy Must Operate in a Coordinated

a

and

rs—is

ernment Is to

and

Thomas

productive

to

that

hoard

Only

one

change

rec-

Dr. Melchior Paly!

ef¬

vast

American
adopted fort of producing something that
toy the Senate Committee.
This serves apparently neither to satis¬
fy human needs nor to add to our
change was the insertion in Sec¬
industrial capacity, goes on un¬
tion 14 of the Bill HR 3314 of the
word "armament," so that the bill abated, and new mines are pros¬
Gold does not
would provide an expression of pected incessantly.
even
circulate any more in the
opinion by the Congress that the
form of coins, as it did in the past.
(Continued on page 98)
the

by

ommended

Bankers Association was

Inform Public Periodically

What is the meaning

Regular

of

Index

Features on

of this re¬

treasure-hunt¬
ing and treasure-hiding?
Will it

'

What

further?

continue

of

lion dollars do?

General

We

are living in a revolutionary
(Continued on page 92)

"

1

<£>

by Mr. Robertson

Railway Labor
Executives' Association, St. Moritz

June 28,

New York City,

Hotel,
1945.

v. •.;

BaU

•

which

Ivan

Dr.

will

make

Wright

equilib¬
full

for

competitive

under

most

would

economic, conditions

certainly be undermined by infla¬
tion or deflation or a collapse in
the

price of Government

bonds.

expected large demand for
capital, full employment and pro¬
The

David B. Robertson

according
people; to assist in coordi-

duction

will

increase

(Continued

on page

interest
85)

1

points of view; to
orderliness in the
economy; to protect the proper re¬
lationships between the various
(Continued on page 96)
their

nating

about

bring

Stale and

Instrument Corp.
Common Stock

will

bank¬

employment

of life, is to serve the

of the

behalf

on

rium

capacities.

concept of Government,

to the American way

in

more

tion and distribution or an

varied economic

address

prosperity im¬
possible. His¬
torically, in¬

ment.

findings of its
agencies, and hence, often misunderstood. Gov¬
ernment can reflect only the economic and social
needs and requirements of the people.
It is sup¬
ported entirely by what the people produce in

*An

post-war
and

stability

anced produc¬

the

gold standard?
What good does
our huge gold reserve of 20 bil¬

objec¬
leading

ruptcy and
unemploy¬

confusing because of the multiple

•

to

bring

viewpoint ahd responsibilities of Gov¬
ernment for high level employment are sometimes

The ideal

tives

flation

and Accruately of the

The

their

other

than war. De-

Single Agency

flation to Workers,

•

112.

a

Toward Goal of Full Employ¬
Warns of Dangers of Both Inflation and De¬

ment,

lentless process of

page

and Calls for

at¬

d estructi ve

Trends and Progress

keeps on acc umulating.
This

will

the

flation is

Holds Function of Gov¬
Stimulate Private Economic and So¬

Cooperative Manner.

cial Organizations,

Robert A. Taft

Firemen and Engineers

Asserting That Government Should Take Control of
the Economy Only After All Possibilities Are Exhausted for the People
to Care for Their Own Instrumentalities, Holds That a High Level of

S.

U.

financial

tainment of all

Labor Executive,

added year by

(Idaho).

B. ROBERTSON*

an¬

over

11

to avoid

make

The

*

man-

a

crisis

year to an un¬

Butler

John

d

D. MilliHugh

*.such

a

un¬

-

billion

Eu¬

in the post-war years.

one

it

mined

well

Robert

Taft,

been

newly

against

will be domestic problem number
Failure to manage the Federal debt in

Managing the national debt

ner as

gold — around
40,000 ounces,
selling for

approval

of Employment in Old Age.

•

two million men dig deep into rocks and
of the globe, to bring out ores, the

nual output of

changes.

voted

as

world's

The four who

■■..:. "

'

:

almost

fast

earthed.

legis¬

abling

"

I.

is

has

n

o

Business in

Arising From Retirement and Loss

of

as

the
t

t

e

content

buried

ap¬

proved

Year after year, some

'

and Would Postpone Interest Payments, and, at
Would Benefit Insurance : Companies, Creditors and
General, Because It Would Reduce Defaults on Payments

the Same Time,

Higher Gold Price After War. ^ v

a

Interest Accumu¬

Predetermined Rate i of Compound

a

Contends This Would Remove Vast Quantity of Government

Bonds From Market

river-beds in the remote corners

which

Currency

Period/at
lation.

(8) That There Is Too Much Gold. Holds U. S.
Left Gold Standard and That Gold is Just As Basic to a Managed
Automatic Standard and Therefore All Nations Are Bargaining

Too Little Gold and

an

,

Post-War Outlook Is Clouded by Problems of

Writer Holds That the

(4) That Its Value Is Independent of Supply and Demand; (5) That
Stable and (6) Unstable; (7) That There Is

Never

'V

Servicing the Huge National Debt.
Proposes a Plan of Converting
Government Bonds Into Irredeemable Annuities Payable for a Fixed

Commodity; (3) That Gcdd Is Like Any Other Commodity;

Its Value Is Intrinsically

as

'•

,

Economics, Brooklyn College

Professor of

Monetary Expert Lists the Elementary Fallacies About Gold as (1) Thai
Gold Is Predestined to Fulfill the Monetary Function; (2) That, Gold

...

:

By IVAN WRIGHT*

V;</,

By MELCIIIOR PALYI

a

Copy

a

Managing the Public Debt

Gold Fallacies

Is Not

Rejects Various Motions Made by
Senator Taft and Others, One of

Price 60 Cents

York, N. Y., Thursday, July 5, 1945

Municipal
Buy War Bonds

Bought—Sold—Quoted

NEW YORK

STOCKS, INC.

Bond Brokerage

for

victory
for Banks, Brokers

Hirsch & Co.
Successors to

LIUENTIIAL

HIRSCH,

& CO.

and Dealers

Stock Exchange
Exchanges

Members, New York

and

other

Established

HAnover tf-OtiOO

Chicago

York 4, N. Y.

Teletype NY 1-210

Cleveland

Prospectus on Request

'

/

New Yor k 5

64 Wall Street,

HUGH

W.

LONG and

THE CHASE

Troy
Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Springfield '

COMPANY

48

634 SO.

WALL STREET

SPRING ST.

LOS ANGELES 14

NEW YORK 5

Acme Aluminum Alloys,

,

-

Members New

York Stock Exchange

Members New

York Curb Exchange

incorporated

PHILADELPHIA

BOSTON

CORPORATE

BOND

Hardy& Co.

1927

INVESTMENT SECURITIES

fcottiSatt'-*Geneva Rep.

25 Broad BU New

Bond Department

R. H,Johnson 8 Co.

Common &

Aireon

FINANCE

Tel.

Plgby 4-7800

.

Inc.

New

Preferred

Manufacturing

Analysis upon

Conv.

Prospectus

Eobbc, Gearhart & Go.
.

Members N.

14 WALL ST..

NEW.YORK 5, N. Y.

TELEPHONE-RECTOR 2-6300




Y. Security Dealers Ass'n

New York 5

45 Nassau Street
Tel. REctor 2-3600

Teletype N. Y. 1-576

Philadelphia Telephone:

-

Enterprise 6015

request

'

Preferred
on

request

Reynolds & Co.

INCORPORATED

exchange

England

Public Service Co,

Solar Aircraft Company
90c

members new york stock

NEW YORK

THE CITY OF

Preferred

SECONDARY

MARKETS

bull., holden.& c2

OF

Tele. NY 1-733

Corporation

BROKERS

NATIONAL BANK

New York 4

30 Broad St.

Members New York Stock

120

Exchange

Broadway, New York 5, 27. Y.
Telephone:
Bell

REctor 2-7400

Teletype NY

1-635

HAST SMITH & CO.
Members
New

York

Security

Dealers

52 WILLIAM ST., N. Y. 5

Bell Teletype NY
New York

Assn.

HAnover 2-0980

1-395

Montreal

Toronto

IRA HAUPT it CO.
Members of Principal
III

Broadway

New York 6
REctor

2-3100

Exchanges

10 Post

Office Sq,

Boston 9

Hancock 37S0

Tele. NY 1-1920

Direct

Private

Wire to

Bosfon

Thursday, July 5, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

66

Trading Markets ini

—--i

,,

Sugar
Liberty Aircraft
Com.

Pfd.

&

BROWN CO. Com. &

Com.

Pfd.

&

York

Other Principal Exchanges

Members N. Y. Stock Exchange and

New York Curb

NEW YORK 6, N. Y.

115 BROADWAY

HA 2-2772

Exchange

on

Request

Members New York Stock Exchange

2-7815

REctor

Tel.

25 Broad

St., New York 4, N. Y,

HAnover 2-0700

Bretton

Corp.

Anemostat

Riidclpb

W@ods# Part of

Carborundum Co.

(Special "to The Financial Chronicle)

Trecker

Kingan & Co.

By HON. CHARLES W. TOBEY*
U. S. Senator from New Hampshire

Mayflower Hotel

Maintaining That the Bretton Woods Agreements Are an Essential Part
of

Stock Exchange
120 Broadway, N. Y. 5
Baltimore

WOrth 2-4230
Bell Teletype N.

Y. 1-1227

was

truly <e>—-—————

that

in

beautiful

lived

We

Bell System

three

Curb Exchange

as

New York 5

a

over

weeks,
ham-

we

mered

COrtlahdt 7-4070
Teletype NY

to¬

for

gether
little

Vanderhoef & Robinson

the

Bretton

1-1548

Woods Agree¬
ments

iyrndun Corporation

Common

A.

was

us

world

in

miniature, and

Hon. C. W. Tobey

the

mot

least

.

S. Campbell
Common

Lincoln Building

i

There

the

Common

Caribbean Sugar

into

shape.
before'

valuable feature of the conference
was

the fellowships which we had

with

the

those

nations.

Common

Punta Alegre Sugar
Capital Stock

A

delegations

from

;

would

man

-

have

20 Pino Street,

New York 5

Telephone: WHitehall 3-1223
BeU

Teletype NY

1-1843

Boston & Maine R.R.
Stamped Preferreds

had; to be

unusually anti-social not to have
tremendously! impressed; by

Though He Sees

Lear, Inc.

Taca Airways
U. S. Glass

&TeeueaniCompani|
;

Members N, Y. Security Dealers Assn.

Details

cover page.

on

:

The

<

Pittsburgh

tal of America.

Douse.

Great credit is due them.

*An address

the

by Sen. Tobey be¬

Business

and

Industry
for
Bretton
Woods,
Inc., Hotel Roosevelt, New York
City, June 28, 1945.
f

Committee

1

,

Detroit Int'l

y

Common, 6%

(Continued

on

page 98)

may

well; be called the heayy industry capi¬

headquarters of

are

industries—in

bituminous

coal,

& 7s

Reiter Foster Oil

the

iron

of

and

.

of the nation's largest
—

Hotel Waldorf-Astoria
Common

Frank C.Masterson & Co.
Members

terms, of coal, struc¬
tural steel; rails, sheets, machin-

(Continued

v

>

86)

on page

Fallacies of Bretton

cannot

Woods
our

the

issue of June

hover

page,

California,
Gustav Metzman

year the - railroads which
Pittsburgh carry millions of
tons of freight to and from your
city. At the same time, railroads
are
also important customers of

Every

industries; To speak from
personal knowledge, we of the
New York Central and the Pitts¬
your

burgh and Lake Erie bought from
firms with headquarters here last

millions of dollars' worth of

;

'

we

thej

gave

Currency,

relative

June

on

the

to

22

of

•

.

.

* Analysis on.

request

.

•».

F. H. Roller & Co., inc.
Members N. Y. Security

111

Dealers Ass'n

Broadway, New York 6, N. Y.

BArclay 7-0570

NY 1-1026

last,;

In

with

connection

the

article,

Eastern Sugar Associates
:

which appeared under the caption

Common

"'Fallacies of Bretton Woods Pro¬

posals,"
.error

we

was

find that
made

in

a

mechanical

one

.page

Thus, while this

2858.

Punta

sentence

appearing in the last column on
sen¬

Alegre Sugar

Quotations Upon Request

tence was made to read: "It was
fair that

Germany should have the
when France and
Italy could not have it," it should
gold

and

CO.

FAItR

standard

by

Pittsburgh, Pa., June 28; 1945.

.

Woods

Bretton

proposals,

have appeared as follows: "It was
Mr. Metzman mot fair that Germany should have
before the Chamber of Commerce
the, gold standard when France

address

-

Company*
Liquidometer Corp.*
Delaware Rayon "A"*
New Bedford Rayon "A"*

the Senate Committee

and

things that make
living enterprises.

serve

•An

Trading Markets

28, starting

Angeles, befoie
on Banking

Los

5

Hartman Tobacco*

by!
Dr.; Benjamin Anderson, Professor
of Economics
at 1 University" oL

the other for the

year

In

on

each de¬

them

YORK

HAnover 2-9470

Indiana Limestone, 6s, *52

full text of the statement made

insep¬
arable part¬

of

NEW

'

Great American Industries*

Proposals

(CORRECTION)
/

two are

both

Curb Exchange

.

others

numerous

One

-

Cross

aluminum and
many

York

Teletype NY 1-1140

in

•reight

New
ST.

64- WALL

coal, iron and steel articles, and,
mpny .othec.- products.
Think of Pittsburgh's railroad

many

branches

some

^

Members

York Stock

New

Exchange

New York Coffee & Sugar

120 WALL

Exchange

ST., NEW YORK

TEL. HANOVER 2-9612

Italy could not have it."

Railroad

New York Market

Wickwire

1

1 Public Utility
Industrial

-

FASHION PARI, Inc.
Debenture 5's

f

Eastern

*

■

for

v

Spencer

1963
:

Corporation

Ohio Securities

:'

Steel

-■

•"

•

-■
.

i

Bridge

s

.

r:

I

area

Here

pendent upon

fore

| Trading (Markets in

V-'*

f;.:.

;

.

Competition and Urges Passage of Bulwinkle Bill "If We
Are Going to Have Sound Transportation."
Says War Proved That
National Safety Requires Strong Railroads and That Unless Other
Transportation Agencies Are Subjected to Same Burdens and Are De¬
prived of Subsidies, the Country Will Suffer an Irreparable Loss.

ners,

definite purpose to try
and do something helpful to bring
order out of chaos, and to help
revive a stricken world, through
these monetary agreements. And
I pay tribute to the statesmanship
of Brent Spence and Jesse Woolcott for the splendid way in which
they shaped this legislation in the

WHitehall 4-8120

ative Carrier

entered into nego¬ •think of Pitts¬
tiations together. I think my col¬
burgh indusr
leagues would agree there was an try vyi thou t
thinking of
Senate Banking and Currency railroad trans-"
Committee on July 3 approved,
portation. The
with slight amendments, the Bret¬
ton
Woods
enabling legislation.

Pfds.

System Teletype NY 1-1919

a

we

37 Wall St., N. Y. 5

Hanover 2-4850
BeU Teletypes—NY 1-1126 Si 1127

Broadway

to recount.

as

Plain

Members New York Curb Exchange,'

Bright Future for Railroads, Mr. Metzman Bases His
Prediction on the Assumption That Competitive Conditions Among
Transportation Agencies Will Be Reasonably Equal. Favors Cooper¬

these contacts, and even more by
the spirit of the: delegates them¬

selves,

7%

Members New York Stock Exchange

65

-

By G. METZMAN*

too

earnest,

V

■

all; steel
industry,;
also glass,

Terminal, 3^>'s, '47

Boston

"

&

Edward A. Purcell & Co.

;':v '

President, New York Central System

been

H. 6. BRUNS & CO.

•

.^'v

Co.

6

England P. S.

lommtm's
Transportation

;

my

nations.

four

■

,

Maxson
New

Bell

state, where
there gathered
the
delegates
from forty-

3-6s, 1956

Telephone

with J. Henry Helser &

New England
Common

Mehr, Jr., formerly with

ver

sec-

of

tion

Savoy Plaza

Members New York

Pine

354

at

Partners are Rudolph de

business.

wish you could have all had the privilege,

gation at Bretton Woods. I

branch offices

Osgood B
Northern

in the securities

Street to engage

great privilege to have been one of the U. S. dele*-' viously

my

our

,

Engulf the World." Holds That Although the Bretton Woods Plan Is
Not Perfect, the Alternative "To Do Nothing" Is Chaos.
Predicts Sutro & Co. and a partner in
Senate Passage of Measure by a Substantial Majority.
Appeals to Manheim, Baker & ver Mehr; and
Rudolph de H. ver Mehr, Sr., pre¬
"Good Sense of the American People."
It

31 Nassau Street,

offices

with

formed

H.

11

NY 1-1557

La.-Birmingham, Ala

Direct wires to

—

Rudolph ver Mehr & Co. has been

Program of Post-War International Cooperation, Senator Tobey
"It Is Unthinkable That We Shall Permit Economic War to

a

CALIF.

FRANCISCO,

SAN

Asserts

Members

Mehr & Go.

ver

New Orleans,

Is Formed in S. F.

Jonas & Naumburg

Kearney &

.

Steiner, Rouse & Co

Exchange

BROADWAY, NEW YORK

120

Teletype NY 1-672

Telephone BArclay 7-0100

TELETYPE NY 1-423

BELL

York Stock

New

Security Dealers Ass'n
Securities Dealers, Ino.

PL, N.Y. 5

Quoted

—

Members

of

40 Exchange

Sold

—

Analysis

|VfC PONNELL & TO.

Goodbody & Co.

Members

Ass'n

Bought

Canadian Securities Dep't.

Established 1920

New

Bought—Sold—Quoted

NORANDA MINES

Com.

KING & KING
Nat'l

& CO., IRC.

41/4% Conv. Pfd.

6UL0L0 GOLD DREDGING

Seaboard Air Line
Old

P. R. HALLORY

McQuay-Norris

KERR ADDISON MINES

Pfd.

&

Missouri Pacific
Old

Markets in U, S. FUNDS, for'

We Maintain Active

U. S.

j

Common Stock*

$3.60 Cumulative Preferred

:

•

STOCKS & BONOS

-

-

Bought—Sold—Quoted

G. A Saxion & Co., Inc.
■j
Teletyoe
1-809
170 PINE ST., N. Y. 5 NY WHitehall 4-4970
r,




Members New York Stock Exchange

25 Broad

St., New York 4, N. Y.

IIAnover 2-0600

Tela. NY 1-210

BOUGHT

—

SOLD

incorporated;

Troster.Currie&Saramers
Simons, Unburn & Co.

WM. J. MERICKA6- CO.

Members N.
74

Y, Security

Private

Wire* to Buffalo

Detroit

•

Pittsburgh

Union

Commerce

Dealers Aps'n

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

-

-

QUOTED

Bidg., Cleveland 14'

Telephone MAin 8500
-

29

Broadway, New York 8
WHitehall 4-3640,

Cleveland*

St. Louis

—

Members Cleveland Stock Exchange...

Direct

Private Wire to Cleveland

^(oc/iu W'
'MEMBERS NEW YORK STOCK EXCHANGE

One

Wall

Street, New York I. N.

Y.

COMMERCIAL and

The

CHRONICLE

FINANCIAL

H. L Porter Co.

We

Beg. U. S. Patent Office

Publishers

Poor & Co.

Public Utility and Industrial

i'

■

REctor 2-9570 to 9576

1

t

York S

25 Park Place, New

-

Herbert D. Seibert,' '

;

AND COMPANY

High Grade

William B. Dana Company

Chicago Ry. Equip.

JUNE IS BUSTING

OUT ALL OVER

PREFERRED STOCKS

.

Editor and Publisher

■

National Radiator

•v'"
■>

-

and every Monday
(complete statistical ^issue—market quo-t
tation
records,
corporation,
banking,
clearings, state and city news, etc.)

-

Harrison 2075
Teletype CO 129

DIgby 4-8640

Teletype NY 1-832. 834

Service

Wire

Other

La

Reentered as second-class matter

Feb¬

Subscriptions In United States anr
Possessions, $26.00 per year; in Dominion
of Canada,; $27.5(L per year; South and
Central
America,
Spain,
Mexico- and
Cuba, $29.50 p-r year;
Great Britain,
Continental Europe (except Spain), Asia
Australia and Africa, $31.00 per year.

for quotations

Other Publications

/

1

;

Recotd—Mth.$23tyr.
Monthly Earnings Record—-Mth.. .$25 yr;

Newburger, Loeb & Co.
New

York

Stock

40WaIlSt., N.Y. 5
I

Exchange

In the rate of exchange,

Whitehall 4-6330

BeH Teletype NY 1-2033

-

|

!

;-

■

I

Some

of

business which is

a
-

the

dividend

pay m e n

Eave
n e

and disastrous
monetary losses have become so
deeply grounded in human so¬
ciety. that any retardation or. im¬

t's

1 ed.

They have
liad along

y

would

de-

functions

disruption
no

the
from

of

Aside

economy.

field pf busi¬

activity which is more essen¬
the smooth functioning of
modern
economic
organization

ness

their op¬

tial

have
been built up

to

than, insurance.

thoroughly
scien¬

tested

a

banking, there is

erations
on

mean

national

el o p m e lit,

and

of insurance

pairment

period of pro¬
gressive

social device for

abnormal

against

been

q u a

as a

fostering the economic security of
the individual and for protection

record

Their

yf /

i

~

Moreover,

they
b

e e n

have
sub-

a. m. Sakoiski

•

'V

control

that has ever been

imposed on any class of
business enterprise.
And,

private
taking

of business

serious

faces
,

jected for almost a century to
the most thoroughgoing and dis¬
criminating system of regulation
and

field

enterprise
in- the
coming .post-war period. : Likd
other lines of economic activity,
a

in

problems

which

monetary1 - values and
operations' play an1" im¬

credit

portant part, insurance; as .a busi¬
ness, is adversely affected by, cur¬
rency
inflation
and
abrupt

The

been

business

one

of insurance has

of uninterrupted

growth

As the incidence
risks to property, and persons

and expansion.
of

have
ever

in

sults

•

,

a

operation.

distortion

of

a

credit

Insurance companies,

subject to the ad¬
effects of inflation on the

therefore,
verse

national

■.

are

economy.

This

clearly demonstrated by the

tainty, because of the develop¬
ment, of actuarial science and the
records of experience, the field




in

Circular

Britain.:;; '.yrV

(Continued on page 100)

Predicted

Only

as

a

/£

_'; .v.:

f

.:1:

_,,

A

John¬

the

Export-

Import Bank
not enough?
Must

there

And,

that level, as envisaged

testimony of Dr. John

Williams,
Federal

York,

if

Hooker Electrochemical

Laclede-Christy Clay Prod.

Shepard Niles Crane 8t Hoist
Bought

Sold

—

Est. im

,

If*

n

IttBioD &
Members New

York Security Dealers Ass'n.

170 Broadway
Bell System

COrtlandt 7-8190
Teletype NY 1-84

in

Vice-President
Reserve

Bank

of
of

Br itannia

Herbert M. Bratter

her

least

the

,

particularly on the
problem. To Dr. Wil¬

(Sterling,: the Bretton Wpods pro|
(Continued on page 94)

CONV. PREFERRED
Recapitalization Plan accepted by stockholders
affords opportunity to exchange present 6% Pre-v
ferred for new Preferred with back dividends
eliminated; or to exchange for Common Stock
Selling Price —15%
6% CUMULATIVE

Circular, outlining Plan, on request

HoiiteSikssim
■

74

Established

Liti*

Trinity Place, New York 6, N. Y.

Tplerthnne*^ BOwlmsr

Green

9-1400

SECURITIES

New

AMERICAN BANTAM CAR

New

SUGAR

H.

liams, sterling is the key foreign
Icurrency, and unless that problem
'is given a better solution than the
•Bretton- Woods program gives to

it take to put

;

Bartgis Bros.
Billings & Spencer

bore

|sterling

too? What will

feet, - at

as

up

.

others,

back on

NY

Chicago & Los Angeles

TRADING MARKETS

Beveridge

The

for, Britain,
for

2-47$5

System Teletype,

the

'

be postlend-

lease for Brit-'

ain?

stand

may

did before

Plan? These are
some of the questions which have
been opened up by the Senate
hearings on the Bretton Woods
bill.
1
the

of

expansion

she
she

as

above

and

t

c

Assn.

York 5, N. Y.

war?
And how much more will it take
to
raise her standard of living

well

Woods, repeal
the

that

iso

way
around?
Are Bretton

son

Bell

Private Wires td

-§§

of Bretton Woods depend on solution

success

problem
is it the other

of

'

First

of the
of long-run stability between the pound and the dollar, or

Does the

ex¬

Europe during the drastic in¬
era of the last World War.

flation

Members

York Security Dealers

Easing of Britain's Ex¬

Emphasizing the Importance of Expanded World Trade as Ultimate
Solution.
Reports Disagreement Among British Regarding Effective¬
ness of Bretton Woods Proposals in Achieving a Balance of Payments
-

Request

on

40 Exch. PL, New

Step and That Chief Problem Will Be to Get the Nation Out of Its
Chronic Fundamental Disequilibrium.
Reviews Suggestions for Solving
Problem on a Short and a Long Term Basis, and Quotes Statements

for

.

J.F.Reilly&Co.

>

Regarding Britain's Blocked Sterling

change Problem in the Transition Period

was

become measurable to an perience of insurance companies
degree of cer¬

increasing

:

t

*

Banking and

New

Balances and the Means of Their Elimination.

present situation, they changes in price levels. Time Js ap
have no problems of reconversion element in the insurance contract.
The contract, itself is essentially
from war to peace, and no changes
<Jue
to
technological . improve¬ a credit transaction. A change in
ments or alterations in the de¬ the value or in the purchasing,
mand for their services or threats power of the monetary unit within
of competition from other serv¬ the duration of the contract, re¬
ices.

on

.

,

Bought—Sold—Quoted

By HERBERT M. BRATTER

11

Writer Gives Views of4 Experts

in view the

•

'
'■ }'
on page 80)

■

,

.

Beckhart

HAnover

war

as

(Continued

Mid-Continent Airlines
i

H.

B.

And Bretton Woods

,

despite all this, insurance

Yet,

lines.

All American Aviation

The British Problem

also

The Effects of Inflation,

tific and prae-

tical

^Dunning Color
Wickwire Spencer

..

corporations are

business

of insurance

es.

'

/v/y;,:.;

insurance

rJompani

TACA

Committee

by Dr. Beckhart before the Senate

22,-1945.

June

Teletype NY 1-1203

Empire Steel

Monetary

International

6, N. Y.

New York

agreed that an
needed to fa¬

are

Assn.

Broadway

HAnover 2-8970

\

generally regarded as highly

existing

oldest of

proposed

the

A' statement

Insurance Companies.
Insurance is

39

agreed as to- the, desirability of

also

are

Currency,

$friter Discusses the Chief Problems Facing the Insurance Companies,
as (1) the Impact of Possible Inflation and Its Adverse Effects, (2) the
Whittling Down of Rates by State Regulating Authorities, (3) the-Re¬
duced Earnings on Invested Reserves Because of Prevailing Low Interest
Sates, and (4) the Threat of Federal Control Over Insurance That May
lead to Costly Adjustments. Holds These Problems Can Be Success?
fully Solved, if the Importance of Maintaining Insurance as a profitable
Field of Business Enterprise Is Fully Recognized and if Proper Action
Is Taken to Assure the Continued Solvency and Financial Strength of

stable.

Members New York Security Dealers

^discussion of and to promote action re¬
specting'international monetary problems.' Stu-"

Insurance Instructor, City College, New York

,

of the subject

Students

whether

By A. M. SAKOLSKI

-

QUOTED

-

U GOLDWflTER & CO.

genuine exchange stability and of the elimination
of exchange controls. The question at issue is

Insarance Companies?

SOLD

-

Complete Statistical Information

cilitate '

be made In New York funds.

What's Ahead for the
!

No Substi¬

for Solving

dents'

!

BOUGHT

international credit organization is

remittances for

^oreifn subscriptions and: advertisements
muac

V

of New York

(1) A" World Conference to Eliminate Trade Bar¬
riers i (2) Assistance in Solving British Exchange
Problems, and (3) A Sound Constructive and Well
Integrated U. S.Foreign Lending Policy. Favors
the International Bank.
;

NOTE—On account of the fluctuations

[

TITLE COMPANY

CERTIFICATES

Fundamental Problems of Relief
and Reconstruction, War Debts and Conflicting
Commercial Policies. He Proposes, in Lieu of Fund:

tute

Bank and Quotation

Members

NEW YORK

STREET,

Beckhart, After Explaining 13 Specific

FtindY Automatic Credit Extension Are

25, 1942, at the post office at New
N. Y., under the Act of March
3, 1879..

PRUDENCE BONDS

-

Defects of the International
Monetary Fund, Asserts That It Offers No Basic Solution for die
Monetary Problems of a War-Ridden World. Holds
Dr.

ruary

CERTIFICATES

Fund

Columbia University

Economist, .Chase National Bank

York,

TITLE COMPANY

"I

WALL

BECKHART*

Professor of Banking,

St.,

Salle

Company

Specializes in

us

S.

135

Offices:

By B, II.

Copyright 1945 by William B. Dana

Estate

Securities Department

Call

99

Telephone WHitehall 4-6551

The Ixitevnatidxial Monetary

Chicago 3, 111. (Telephone: State 0613);
I Drapers' Gardens, London, E. C., Eng-i
land', c/o Edwards & Smith. "
"
'

Chicago—St. Louis—Kansas City

Our Real

map.

{general new? and advertising issue)

Ass'n

CHICAGO 4

Broadway
NEW YORK 4

rid of them

get

we

—

the

over

Stock Exchange

Members New York

us

Obsolete1 Securities Dept.

Teletype NY 1-5

Telephone HAnover 2-4300

week

Board of Trade Bldg.

32

Direct

Dealers

a

Thursday

every

STRAUSS BROS.
York Security

all

to

Sell

those old obsoletes.

to

on

them

25 Broad Street. New York

Thursday, July 5, 1945

Published twice

ing

Trask & Co.

encer

Business Manager

•[.:

Welch Grape Juice

New

-

William Dana Seibert. President

William D. Riggs,

bust by hang¬

don't you go

but

—

Members

LiCHTfOSTflil

"

interested in offerings of

are

'

,

,

67

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4400

[Volume 162

Teletype: NY 1-375

DUNNE & CO.
Mimbers New

25

York Security Dealers Assn.

Broad St., New

York U, N. Y.

WHitehall 3-0272—Teletype NY If956
Private Wire to Boston

Public National Bank
& Trust Co.

National Radiator Co.

Industrial Finance
Preferred

C. E. Unterberg
Members N.

Y. Security

61 Broadway, New
Telephone BOwling

& Co.

Dealers Ass'n

York 6, N. Y.
Green 9-3S68

Teletype NY 1-1660

*

FINANCIAL CHRONICLE

THE COMMERCIAL &

68

Thursday, July 5, 1945
BOSTON

York
Metal

Corrugating Company

Products

1944 year-end
1044 earnings

Since

Po$t*War Participation

BUILDING

-

net working capital
(net)—.

dividend

——;—
$5.06
—a.—.83

*Ekco Products Common

per share

per share

.

25c dividend paid June. 28, 1945
Report—Stock for Retail—Inquiries Invited

INDUSTRIALS

70 Pine Street

Aetna Standard

Eng.

on

industrial

request

J.K.Ricc,Jr.&io.

Securities

Members

Teletype NY 1-2425

N.

Y.

Security Dealers Assn.

REctor 2-4500—120 Broadway1
Bell System

Teletype N. Y.

1-714

Sixty

DETROIT

I

L

du
furnished

Reports

Capitol 433Q

York

Member. New

Foundation Co.
74

General Machinery
General Tin

Wiires to

Private

Teletype NY 1-376-377

Members Detroit Stock Exchange

Cadillac 5752

H. M
•

Company

Harvill

GRAND RAPIDS

Common

Preferred

&

•

:

Common

Preferred

&

3s-5s of

Harrington & Richardson

Liberty Aircraft Products
Maguire Industries
Majestic Radio & Tel.
P. R. Mallory
Mastic Asphalt

.v,

;

•'

Class

'

&

A

Successors
CHAS. h.

Established

50

W. L. Maxson

to

JONES

;

Broadway, N. Y. 4

CO.

Pine Street,

30

HAnover 2-8380

Tele. NY 1-1790

Members Detroit Stock' Exchange

Moxie Co.

j; The Oier-the-Coimter

•

Giant
,

,

Portland

"A?

b

Cement

*Kingan & Co.

*Riverside Cement

'J

ST. LOUIS

^Central Iron & Steel

.
"

-

*

Stromberg Carlson

J

;<

ized and "Provides Even the Smallest Community With
a

a

10

;

j U. S. Finishing Co., Pfd.

and Facilitate

-

that

two broad general divisions of the

securities markets,
provided by the stock exchanges of the country in securities

There

are

listed with, the

.

deals in

Aspinook Corp.
Berkshire Fine

curities

Spinning

Consolidated Textile

listed

the

exch anges.
The latter

Darlington Mfg.
New Jersey .Worsted

.

,

the
to

■i
American Gas & Power

Central EI. & Gas Com.

Conn. Lt. & Pr. Com.

I

stead of the auction characteristic

have the negotiated transac¬
tion. Those engaged in the overthe-counter business recognize no

Eng. Pub. Serv.

kets

Common

ex

-

C. E.

Unterberg

change, and,

North'ri New

Eng. Co.

ammsmmmsmmmmmmmmmmmmmm

over-the-counter — deal

in

,

the

.

same

Iowa Southern Util.

product, i.e.,, securities—but

from that

Nassau Suffolk Ltg., Pfd.
Sontheasi'n Corp., Spec. Part*
Circular upon request

fProspectus Upon Request

point there is almost

no

similarity.
The characteristic
chiefly distinguishes them

which

is to be found

in the

manner

in

which business is transacted. Stock

.Exchanges are
auction
places.
They provide the physical sur¬
roundings where-the buyer and

2-8700

NY

|:f|g

Direct Wires to Chicago and Pbila
ENTERPRISE 'PHONES

Buff. 6024

Bos. 2100




*An address by Mr. Unterberg,
of C. E, Unterberg4 & Co., New

York

City, before the Investors
Fairplay League, New York City,
June 28, 1945,

,

ESTABLISHED 1899

.

.

160 s. main Street
Salt lake
BELL

SYSTEM

; "

,

-

Boston Sand & Gravel

City i, Utah
TELETYPE SU

464

Oldest Investment House in Utah

.

pect is found, but there is a gap
in price, the transaction does not

significant in volume to that in
die.. An effort is made forthwith the off-the-board market. Almost
to compose the difference in price without exception, the obligations
and make a trade. In other words* of States and: municipalities are
over-the-counter dealers merch¬ traded off-the-board; '
andise

a

securities,

the

ultimate

bringing

The
buy order or

existence of a

the

order is the incentive for
over-the-counter dealer to

What

the

opposite seller or buyer.
are traded off

securities

board?

Government

All

long-term U. S.

bonds

are

listed

on

the

New

but

trading in that market is in-

York

Stock

Exchange*

leneral Stock & Bond
POST OFFICE

10

Corp.

SQUARE

BOSTON 9

Telephone: Liberty 8817

Bank and insurance stocks are

them

consumer.

sell

find the

120 BROADWAY, NEW YORK 5

U. S. Sugar

8ccompany
;

country—one at the other's call in
few minutes time. If a pros¬

mere

matically to the exchange. When
a buy order and a sell order for

in¬

■

a

to
Y. Security Dealers Am,

Amalgamated Sugar

cluding the mails, private tele¬
phone, telegraph wires and . tele¬
types which connect over-thecounter dealers in all parts of the

to

The orders to buy or
flow more or less auto¬

Telephone

REctor 2-5035

Edward L burton

communications system,

seller meet.
sell

Private New York

On request

vast

mar-

—

75 Federal Street, Boston 10

Utah-Idaho Sugar

■

vicinity, he is sought out in all
likely places through means of a

two

types of

Dayton Haigney & Company

.

cannot be found in the immediate

market.
The

LATEST ANALYSES

physical confinements for their
operations. If a buyer or a seller

the-counter

Cops. Elec; & Gas Pfd.

SALT LAKE CITY

you

over-

England Lime

Submarine Signal

other

to

address

the

New

hand, buyers and
sellers literally make markets. In¬

myself pri¬
marily is com-,
monly known
as

the

wish

one

which

Members St. Louis Stock Exchange

In the over-the-counter market,

on

market and

Textron Warrants

Boston Edison

seller

not

on

Trading Markets

■

willing to pay and the price the
is willing to accept,
are
identical, a transaction occurs.

se¬

Teletype BS 80

Boston & Maine R.R. Prior Pfdl.

same security can be matched,
that is, if the price the buyer is

which

that

STREET

St. Louis

the

exchanges and

Alabama Mills*

SOS OLIVE

.

.

•

INVESTMENT SECURITIES

Development of New Products and New Industries.

Warner-Swasey

t

POST OFFICE SQUARE
BOSTON 9, MASS.

Tel. HUB 1990'

Definite Economic and

Social Function and Will Continue to Provide Employment

/

LERNER & CO.

Home Market."

!* Triumph Explosives

TEXTILES

*drcular Available

ity Exchanges and the Over-the-Counter Market and Describes, the Extent
and Mechanism of the Latter, Which, He Says, Is Regulated and Organ¬
Asserts That the Over-Counter Market Serves

j rTaca Airways*

r Hartf'd 6111

'

Springfield

*Con.Cement Corp. Class

MICH.

Tele. GR 184

•Mr. Unterberg Points Qut the Essential Differences Between the .Secur¬

Corp.

Sterling Engine

\

Providence

TRADING MARKETS

•

Detroit Office, Buhl Bldg.

Iiiduslvy

!';:By C.;E.T TjNYEiLBEka*V;..
j
President of th$ New York Security Dealers Association
.

Standard Stoker

kEctor

Portland

white, noble & co.

New York 5, N. Y.

Tel. Digby 4-7900

GRAND RAPIDS 2,

Purolator*

Street, Boston 10, Mass.

Winters & Crampton

Phone 94336

Alegre Sugar

77 Franklin

Tel. LIBerty 2340

Michigan Chemical*

.

F.L. PUTNAM 4 CO.. INC.

1962

Members New York Security Dealers Assn.

;

1904

'

'•

Inactive Securities

Central Steel & Wire

Common

BERWALD & CO;

-

&

■•#'''

■;>

Industrials—Utilities

West Michigan Steel

W. I. Banigan & Co.

■' "/

International Rys. of Buffalo

'

Bought—Sold-—Quoted

Jessop Steel

f;

Simplex Paper Corp. Com.

Community ; Water Service
.

:■

Bank and Insurance Stocks

Byllesby & Co.

-

Howell Elec. Motors

itembers N

England Coverage

Secondary Distributions

National Bronze & Aluminum

American Arch

Com. & Pfd.

or

Retail New

Tele. DE 507

J'

American Bantam Car

*Bulletin

New England Markets

Buhl Bldg., Detroit 26

Buffalo—Cleveland—-Detroit—-Pittsburgh-—St; Louis

Great Amer. Industries

|

Teletype BS 424

^IDolphyn

Security Dealers Association

Trinity Place, N.Y.C.—HA 2-2400

Building

BOSTON 9, MASS.

Mercier, McDowell

1'ROSTER^ GURRIE & SUMMERS

Electrolux*

.

Shawmut Bank

request;

on

r

Pont, Homsey Co.

:

;

Lawrence Port. Cement*

•

Inquiries invited

E

Ekco Products t

New

on

CIRCULAR ON REQUEST

I

Du Mont Lab. "A"

Sheraton

year

Currently

/

R

Douglas Shoe, Com & Pfd.*

Punta

<

Priced about $39.00 per share

Buda Co.*

Pollak Mfg. Co.
H. K. Porter, Com.

note

$2.00 dividend basis

Armstrong Rubber, Com. & Pfd. f
Bendix home, Appliances
Bowser, Inc.*
Brockway Motors
;
;
Buckeye Steel Castings*

|

companies

unbroken dividend record

Am. Win, Glass, Com. & Pfd.*

I

estate

60,000 shares capital stock
($100 par value)

.

American Hardware*

I

real

$450,000 mortgage

,,

Established 1908

& Pfd.

Am. Bantam Car, Com.

I

Prospectus

Capitalization

New York 5

Hanover 2-7793

♦

/

FIRST COLONY CORPORATION
Underwriters and Distributors of Investment

One of New England's largest

.

■

ORGANIZED 1836

.

8.75 per share

(*)

,

Statistical

Wharf Company

,

Venezuela Syndicate, Inc.

.50 per share

market

.Boston

U. S. Finishing 7% Pfd. & Com.

in'> the

INDUSTRY

:——,

j—

approximate
,

1902.

INDUSTRY

AUTOMOTIVE

♦1944

Wickwire Spencer Steel Co.

traded

over-the-counter, as are
real estate bonds, railroad equip¬ 'about
500,000 corporations of 'all
ment trust certificates and most kinds' iri this
country; Eliminat¬
securities traded
on
a
"when- ing the smallest one-man
shops
issued" basis.
and
strictly
family-corporateIn addition,
many industrial, firms, real estate situations oper¬
public utility and rail securities ating as corporations and the like,
are

bought and sold in the over-

.

It

is

estimated

that there

we

are

;

to a working base oi
7,000 corporations each hav-

come

about

the-counter market.

(Continued;on^^page 108)

Volume

69

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4400

162

Hi

PANAMA COCA-COLA
Quarterly dividend payable July 16, 1945

$.50

—

DIVIDENDS:

(to date) $1.75

1945

—

1944 $2.75

1943 $4.50

—

New

Analysis

Bank of Montreal

Maybe DEALERS

Approximate selling price—29 xk

Canadian Bk. of Commerce

RoypI Bank of Canada

request

on

,

should have been at the

HoixRsseSTrsster

Andian National

74

Corp.
Com. & Pfd.
Canadian Pacific Rwy.

San Francisco Conference

Established 1914

Brown Company

Trinity Place, New York 6, N. Y.

Canadian Western Lumber

Teletype: NY 1-375

Telephone: BOwling Green 9-7400

AT ALL world

conferences, the first demand is for

j[\ "cooperation." That's why it might be
&

H&B

a

Common

Schuyler Hudson
1st

American

Randall Company

Machine

North American Cement
All

Preferred

That's

Common

"B"

INC.

William

52

N. Y.

Teletype NY 1-2419

WHitehall 4-3990

Conditioning

1924

St., New York 5,

'

Common

present. We know for
cooperation-conscious—
business, how it can be

are

own

Minnesota & Ontario

Sun Life Assurance

HART SMITH & CO.

a

52

is

next

time you can use

help, why not call

Bell

1-395

Teletype NY

Toronto

Montreal

Community Water Service
5'/2s-6S 1946

Crescent Public Service
1954

6s

Public Service

East Coast

1948

4s

teletype us ?

or

HAnover 2-09S*

St., N. V. 5

WILLIAM

Now York

Cooperation in that spirit is profitable and pleasant—
Curb and Unlisted

Paper Co.

Noranda Mines

good proportion of our total
predicated on cooperation with other
dealers. Working together is mutually profitable, but
we feel that it has mutual
obligations, as well. When
you find a source of business you have done your
share—when you call on us, we are ready and willing
to do our share,
by locating hard-to-find securities, by
supplying the best information we have available, and.
by every other means possible to us.

Issues

Established

dealers

outlook, and

our

business

George R. Cooley &. Co.

U. S. Air

fact that many

they have seen, in their
profitable all-around.

1947

4s,

International Utilities

idea to have investment dealers

Railroad Employees
Pfd.

Electrolux

good

a

Eastern Minnesota Pr.

Securities

Sl/z$ '51

Minneapolis & St. Louis Ry.
Issues

qAllen & Company
Established 1922
30

68

William Street

Joseph McManus & Co.
Members New York Curb

to

Los

Members

Street, BOSTON 10

63

Members New York Stock

Exchange

Bell

UTILITY,

INDUSTRIAL

BONDS

STOCKS

INVESTMENT

AND

American Locomotive

the Investment Business

Brill Corp. 7%

Western Pacific 5s, 1946

Exchange

Methods of Securities Marketing, Mr. Goodman Contends
Structure for Brokers Encourages Malprac¬
tices and Recklessness. Lays Down Twelve Items Which Need Correc¬
tion, Among Which Are Present Restrictions on "Supporting Orders";
the Distinction Made in Regulating Exchange and Over-the-Counter
In Discussing

Vlhm and How Do Figures

{Dealers; and Absence of Designated Capital for Securities Dealers,
i Advocates Repeal of Short Selling Restrictions, the Enlargement of

Requirement That Every Security Dealer Be

'to be

the type of securities
and salesmen. Very

are®

and
partners to types of customers
who
cannot afford, or^ do not
the

understand
Very

risk

involved.

of stocks are
public, representing a

often, blocks

sold to the

of a business not suitable to public invests
ment. Very often, a broker is not
sell-out by the owners

:
,

specific se¬
curity to'a customer;, but, if a
-"Special Offering," including a
special commission, should be¬
come available, the broker imme¬
diately recommends the same se¬
curity. This is, admittedly, a dif¬
ficult problem to solve. The New
York Stock Exchange under the
able and
common-sense leader¬
ship
of Mr. Scfiram, has this
interested in selling a

matter

mind. Of course, the
"Special Offering" could

in

matter of

amendments to the
that more ac~
result. There
is no good reason why a large
holder of securities should be en¬
abled to sell at a favored price.
be

solved by

Securities Laws, so
tive markets will

*Remarks
the
Hotel

City,

Goodman at
Fairplay Clinic,

of Mr.

Investors'

Pennsylvania,
June 28,

New

1945.




York

Among the matters which still
need attention
are
the charges
made by some concerns for trans¬

on

ment

Historical Analyses. Science
for Sound

Basis

Held

a

Social Development

Revolutionary, Not Evolutionary,
on the Road to Freedom Now

i

Statesman put

The

American

subject.
customer

discussed

instance, when
to a broker

For

gives

order to sell

or

a

an

buy 100 shares of

h

Give

;

re

u man

what

work

customer a confirmation in which

at p e a c

D.

principal and no commission
charges are shown." What happens
that the

is

broker makes

able

profit

the

a

size¬

customers'

on

the

deal

without

knowledge.
In
reality, in most cases, the broker
does not act as principal at all.
He only buys the stock for his
own

account to complete the sale
It seems to me,

Roosevelt,
his

son

in

If

for

one

in the

business.

Also, where

this
"Eco¬

t; i t

Prof.

broker furnishes investment ad¬

visory advice in this. connection,
he also has the right to make a

charge, provided it is agreed to
by

the customer.
(Continued

-

But,

on page

I

do

97)

not

on

Alden A. Potter

theory,

J.

B.

The

Clark,

Divine

in

an

article

-

might

put

it

this

us

for

cure

History

democracy

!

•

Dealers Ast'n

New York 5,

63 Wall Street

:

Bell Teletype

k.

Y.

NY 1-897

is

simplifying
we

social

rela¬

.

changed;

•

•

-

-

-

■

-

operation

in

,

competitive co¬
industry than that

which Adam Smith conceived. We
need not

assume

word

i

n

that his

was

implementing

science

is

-

more

Ley (F. T.) & Co.

,

;
>

Globe Oil & Gas

Okla. Interstate

MiningY Y

Bendix Helicopter

Gt New York Brewing

! :-:j

j

"Southwest Gas Producing

I

the

the

science—more

(Continued on page 89)

},* -!

Sterilizing

in

automatism

profit motive. The cure for social

the patience to bear

what cannot be

human

need

better, not fewer,
moral
standards;
and
through
their use a better development of

last

Y

Reiter Foster Oil

Electric Steam

Morris Stein & Co.
50

Oh, Lord!

Give

the

Y. Security

.

tions

-

"Capital and Its Earnings."

way:

i

substituted, public, "invest¬
competitive profit and
loss eliminated. In the science of

recognized or not, is a
the-counter
mainspring of. political action, and
considered adequate, they should a faulty theory, widely taught, is
be increased, and apply to every¬ sure, to bean fruit in bad action,' —
a

.

ment" with

whether

charges for overtransactions are not

.

democracy, as DeToqueville
remarked, the cure for capitalism
is more capitalism, not less; more
room
for private enterprise, not

Social

way:
nomic

commission

f

.

Incorporated
Members N.

more

Philosopher

if

"science".1

*

Frederic H. Hatch & Co.

that

principles

-

No Lessons in Political

Day ad¬

for his Customer.

offer such

stick to his

the

.

dress.

p u

would

he

if

make truth,into

Jeffer¬

The

Ohio Match Co.

difference!

"guns"—to

posthu¬

mous

the wisdom to know

Scientist might

wisdom

e."—

Franklin

^

(Anonymous)
The

to¬

it is stated
as

Sugar Y

Associates, Common

changed;

be

can

us

the

peoples, of
all
kinds, to
live
together
and

the courage to change

us

Give

gether, in the
same
world,

that the broker acted

Eastern

the science of

over-the-counter stock, in some
cases
the broker will send the

an

survive, we must cultivate

pre-eminent fact that, if civilization is to

Cyanamid

Preferred

it this way; "Today we are faced with the

all

mhch

Teletype NY 1-955

DIgby 4-7000

of Measurement and Price as a Basis for Moral Judg¬
of Social Action.
Questions "Divine Right" of Statistical and

This

a

Exchange^

York 5, N. Y.

1 Wall St., New

matical Theory

lationships —
the ability of

been

*

1949

Members New York Stock

actions in over-the-counter stocks;
has

6s,

GUDE, WlNMILL & CO.

Agreement With Father Dempsey on Value Analysis and
the Evil of "Forced Saving," Writer Presses Further Into Mathe¬

In Substantial

Imperiled by "Scientism."

often, too often—securities
! recommended by salesmen
i

Lie?

V

By ALDEN A. POTTER

.Present Commission Rate

ought to be made of the subject of
recommended to customers, by partners

,

Phila. Reading Coal & Iron

Magazine

A study

~

N. Y. Lack. & Western

By JOSEPH D. GOODMAN*

-Exchange Listing and the
Member of an Exchange.

7% Pfd.

Pfd.

Cayuga & Susquehanna '

Should Accomplish
Financial Columnist, Forbes

New York 5, N. Y.

Teletype NY 1-897

RAILROAD,

MUNICIPAL,

GOVERNMENT,

Teletype NY 1-1610

PUBLIC

Member, New York Stock

Incorporated
Y. Security Dealers Ass'n

N.

Wall Street

New York 6

39 Broadway

;

Consols

Frederic H. Hatch & Co,

,

Exchange

Angeles
Digby 4-3122

Teletype NY 1-993

201 Devonshire

Chicago Stock Exchange
Wire

Direct

4%

Telephone HAnover 2-1700

NEW YORK 5

1-1017-18 &> 1-573

NY

KANE, Asst. Mgr.

Y. y«

2-2600

HAnover

Telephone:

WALTER

Securities Co. of N. Y.

Pressprich 8C Co.

MICHAEL HEANEY, Mgr.

YORK 4, N.

NEW

-

STREET

BROAD

Teletypes:

'

R. W.

NEW

Broad

YORK

Teletype NY 1 -2866

Street 4

4,

N.

<•

Y.

1

!

HAnover 2-4341

the commercial & financial chronicle

70

Thursday, July 5,1945

PVBLIC UTILITY..STOCKS.
We maintain
many

The

active, market in the stocks of

an

public utility gompanies and through

the facilities of our direct

Pacific Coast

Prospects of Inflation"

Securities

private wire

system are especially equipped to

/

in

trade

those markets where

Orders Executed

' J.

'V';

are"

offices

various;

our

Austin; White

'■

"

•

'

located.'

>'

■

'

■

Complimentary copies of reprints of the

Paine, Webber, Jackson & Curtis
ESTABLISHED

Schwabacher & Co.

above article, published in The Commercial

1879

be had upon request

Members

.

New York Stock

Financial Chronicle May

&

31, 1945, may

Exchange
Exchange (Associate)
Chicago Board of Trade

New

York

to the undersigned.

Curb

14 Wall Street

Public

Utility Securities
Associates is

a

San-Francisco

J. A. White &

$181,000,000 Mellon-controlled

In

■

VValtet* Why te

changes in the

6%

the

some

have

$35

a

preferred amount to
share; no dividends

been

the

on

common

Both classes of,

preferred are now entitled (joint¬
ly) to the same number of votes
as the common stock.
With little
! prospects for paying off the ar¬
rears, the new plan is designed to
recognize the fact that the holders
of the 2nd preferred are "in a
sense the real owners of a large
part of the equity in the Associa¬
tion, and to that extent already in
substance common shareholders."
The

$55,000,000

refunded
;

without

1st 4s will be
awaiting .con-

summation of the

plan. On June
29th the company registered with
the SEC $40,000,000 1st & col¬
lateral trust bonds due 1965; a
$15,000,000 .2% % bank loan has
also been arranged.
The 4%%
prior preference stock will remain
'outstanding but certain changes
in its rights will be made.
It is
proposed to increase the issue's1
voting-power,-giving it- the right;
to elect a majority of the trustees
if in future there is a year's de¬
,

fault in dividends.

Holders of the

'issue would also be

permitted to
on 'important
changes in
capitalization, mergers, etc.^ ratifii cation by a two-thirds vote being
'vote

;

shares of

common

preferred.

one

share of

Each share of present

common

will

share of

new

basis

for

85%

of

receive

l/6th of

the

new

will be allocated to the

and J5% to the old

a

On this

common.

common

preferred,

common.

In¬

Among,

o mm e rce

to be maintained around the-pro
forma
1944: level
of $3,500,000

(which
the

about $650,000; belpw
1939-1944 average), adjusted

net would

approximate $3,600,000.
After deducting prior preference
dividend requirements, some $2,500,000
common

would remain -for new
stock, or about $1.14 a

share.

-.'•'v.-

Normally it might be expected
that the stock of a reorganized in¬
dustrial-utility
company
might
sell as high as 15 times earnings.
But in the

of Eastern Gas &

case

Fuel, there

may be doubts regard¬
ing the future trend after the im¬
mediate post-war boom has sub¬
sided.
The new pipe lines and
other factors may stimulate in¬

creased
vs.

C.omm i f tee:
it h

w

-

competition

coal

and

between oil

for

coke

fuel

con¬

sumption in New England, terri¬
tory, (though on the other hand
new economies in coal mining may
bolster that industry). Ten times
earnings would therefore be a
m o r e
conservative
multiplier,
since earnings might drop below
the 1944 adjusted level.
V

ffiough stops
all.

Including
increase

some

in

also

seem,

$580,000 estimated

taxes

Bill,

addition, David M. Wood

be¬

now

fore the

it t e. e

m

the

are

Wood, Hoffman, King & Dawson,
and Sanders Shanks" Jr., Presi¬
dent of the Municipal Bond Club
of New York, are expected to be

,

them

Among

com¬

ments

made

in attendance.

Represen¬

by

Clar¬

tative

F.

ence

ously referred to

are given here¬
and, with the exception of
Representative Fad jo Cravens of
Arkansas, all of the contributors

with

commit¬

It

tee.

m a y

observed

be

our

of

Clarence F. Lea

June 14, page

^

columns

2606,

-

published- the

we

group
various

•

legislation,

which is intended to

immunity

the

.

transactions in State and

'

munici¬

2847) of his.inten¬
for action on his
immediately following

to; press

measure

.

the

new

stock.

It may

apply the result¬

ing estimated values for the

on

For

and common, as

follows:
At 15 Times

JEst; Earns.
commch_$J1.40 •

Est. Earns.

(No E. P. T.): '
» '
Price of new eommon_




te

Chicago

htgks,

n^w

hardships
municipal

unnecessary

nancing

of

We have

no

the

17.40

paternal pat on the head.
Watching them go up, almost
daily, wasn't easy.
Two weeks ago the column
detected what looked like an

early attempt to get the in¬
dustrials to emulate the
riers.

a long breath
this column decided to throw-

caution to the winds

long of

an

to

any

unnecessary

legitimate dealing

at

fCoppers Co. has indicated

terest in Eastern

in}

Gas & Fuel, to

conform to the * provisions r of the
.

Holding Company
reasonable

plan

goes

time

Act,

after

into "effect.

within
the

-a

recap

J

:

.

lamborn & co.
99 WALL STREET
KEW YORK S, N. Y.

reme¬

sugar

handicap

in municipal

Exports—Imports—-F utures

DIgby 4-2727

think

the

indus try
to

adjust

fair

Established

.assur-

H. Hentz & Co.
Members
.

New

the

of

I

■

.C h i

.Stock

Exchange

i

Curb,

Exchange

i

York ' Cotton

Exchange

Commodity
c a

g„o

Exchange,
Board

of

,
,

inc.

^rade

New Orleans Cotton
Exchange
And .other
Exchanges

\

N. Y. Cotton Exchange
BIdlg.

:

com¬

menting

on

*

NEW YORK 4, N.

the

pending
bill, until it is
in. its 1. final

CHICAGO

Robert Crosser

form.
~

York

not

feel like

.

York

New
New

of in-

do

I8S0

its;

necessary pro¬

But

its intention to. dispose of. its

I fore79)

on page

Ohio

tection

2%.

list of

comfort¬

a

position to take.
(Continued

Rep. ROBERT CROSSER

ance

4.35"

and go

new

It wasn't

stocks.

130.50.
■;

entire

securities.

a.

•

car¬

Taking

is required for.

26.10

and

system,

I would be interested in

views to what

:

up,

,

a

the fi¬
activities.

the SEC thinks

«

number of inj

even; the markeVs step^cHilf
dren, the utilities, came in for

on

securities-regulating

but

85.50
2.85

a

climbed

desire to break down

$17.00
•

outright bear^

managed to advance

dustrials

from the standpoint as to whethhr
or
not the law was placing any

preference,stock vectors in :
around 94, the State and mu¬
preference around 57 and the nicipal. bonds.

The

Wire

to

gatnui

the

during that peribdi

•

the rails

.The 41/2% prior

common

2? BROADWAY, NEW YORK 6, N. Y.

ishness.

month thi$

a

rati

from caution to

interested in the question

was

is currently selling

6%

Gilbert J. Postley & Co

has

should be able

At 10 Times

Equiv. price of $6 pref. 87.00
Equiv. price of old com. -2.90

Building Corp. 5'is 1963

I

actively

old preference stock

new
Price of new

Poli-New Eng. Theatres Gen. Inc. 5s '83

Foreign Commerce Committee

I
stock to the

than

more

eplumn

Chairman House Interstate and

jn Philadelphia
•

even

iure?

a

;California

July 10 between the SEC and

organizations

not

are

;jymTERWHYTEj.
•

able

incidentally has in-t
"Chronicle" (see June dying

28 issue, page
tion

collapse

stops,

Despite reaction holders
' I

Mr. Boren
formed the

various

on

■

t

e

of

still in black.!

are

Rep. CLARENCE F. LEA

of

.:/;

,

interstate and Foreign

cn

Commerce:

establish be¬

dispute

yond

the hoped-for tax legisla¬
tion—equivalent to - about 600 a
be of interest to

mittee

initial

the

regarding

tee

Equiv. price of $6 pr£f. 57.00
Equiv. price of old com.
1.90
Est. Earnings of $1.74

Direct

,

views ' expressed by
members of the commit¬

Est. Earns. of $1.14;

Lincoln

'■

of

scheduled meeting

share

members of the House Com¬

are

in

that

-,

The additional comments previ¬

Lea,

Chairman *o f
the

In

of the
New York municipal law firm' of

com-

amount roughly" half or $1,325,000
might be salvaged when Congress

passes,

be

k

m a r

value

are

tion of America and the National

oma.
So

would

to

meeting

Security Traders Association.

proper to adjust eariiings for pos¬

it

this

revisedBoren.

sible repeal of excess profits taxes.

However,

scheduled

at

■the -Investment. Bankers Associa¬

pal bonds from control of the SEC:
The issue of June' 14 also ^ob¬
tained (on page 2629) the ;tex"t of
the measure introduced by Con-;
nan* Lyle
Boren of Okla-;
sv

»

those

Represented

refer-,

;

was

resulting from
The 6% preferred stock (with Jhe bond refunding operation, the
present excess profits taxes would
arrears) will be exchanged for
approximate $2,650,000.
Of this
new common in the ratio of five

required.
;

$hows

a

paid
stock since 1934.

5

Sudden

Congrespman Boren to Press for Action ori

capital structure.

utility Holding Assuming that new 3s could be is¬ Bill After Scheduled Meetingof <Commission With Represehtatives of
company (although. utility earn- sued, gross savings would &mt>unt InterestedOrganizations.
•
;?£•£;-j -''
"'h
?'ings are- but a small part.of the; to $681,000 .a year hut some 85%
We •frreP- able to give in' this issue another J
group of. exclusive
total). Hence the new plan must bf this would be lost In increased
omor,+c
r,»rnicV»od
th*
statements furnished
"ChrpmcleT by:: members / Of the Housd
'be passed on by the Commission; excess profits, taxes,~ so. that net
Inter estate
There are no arrears on the savings might' approximate $100,concerned
and
with
the; legislation;
Foreign,:
lprior preference stock, but arrears 000., Assuming- post-war-income
C
on

*■

Tomorrow's Markets

Additional Views byMembersof
House Committee on Boren Bill

as

'

' *

Cincinnati 2

-

preference stock, but during: in the new consolidated balance
earnings have averaged1 sheet, and other adjustments will
;
'?.V-,,.- \
\';I
'nearly $6 a share, and about half; be made.-that amount has been paid out. :
The new common will have a
However, the company obviously> par value .of $10, but the pro forma
remains over-capitalized, ,-and a balance sheet gives it a book value
'recapitalization plan was issued- of nearly $18 a share.
The pro Chairman Clarence F. Lea and Other Members of House Committed on
on June 1st.
Due to the fact that' forma consolidated income state¬ Interstate and Foreign Commerce Express
Opinions Regarding Measure
'the company has an interest in' ment doe$ not adjust for the bond
Designed to Establish Beyond. Doubt Immunity pf State and Municipal
Boston Consolidated Gas and Old
Refunding or- for other prtipbsed Bonds From SEC Control.; ,
1940-44

|Colony Gas, it is subject to SBC

Sacramento

—

tangible assets will be written off

ond )

.restrictions

Oakland

—

Office$

Santa Barbara

Fresno

specialists in ohio municipal bonds :
Union Central jSldg,;

—-

■

i938-39^

earned for the 6% (sec¬

was

Monterey

Company

company

comeback in earnings.

'little

Teletype NY l-92g

Private Wires to Principal

with coat, coke, gas, marine and utility in¬
terests, serving principally New England territory,
Due to the pre¬
ponderance of coal mining (contributing over half .of system rev¬
enues) the-company-in. the 1930's was adversely affected by the
increased use of fuel oil, but during the war has made a partial

''hybrid holding

New York S, N. Y,

COrtlandt 7-4150

Eastern Gas & Fuel Associates
Eastern Gas & Fuel

on

Pacific. Coast Exchanges

1

(Continued on page 73)

UETROfT'

*

Y.

PITTSBURGH

GENEVA, SWITZERLAND"

THE COMMERCIAL &

Number 4400

162

Volume

n

FINANCIAL CHRONICLE

-☆
☆-

installation

Announcing the
of

a

Bell System

Teletype

*.

• >

^

•

<•

■

.

THAT

PLEASURE IN ANNOUNCING

WE TAKE
'

•

•

j

-

?

„

We take

7V
7
;

NY 1-2500

pleasure in announcing that

DUNN

STEWART

Mr. Walter

PETER BARKEN

CARL j;

KREITLER

J. Mal.oncy

and

'

■/

BROADWAY

32

NEJV YORK 4, N.
IITEHALL

REVITS

SAMUEL

Y.

tcrsier

Mr. Mwrray
I

4-6430

WILL BE ADMITTED

have been admitted to

TO OUR FIRM AS

1,1945

GENERAL PARTNERS ON JULY

in

general partnership

firm.

our

,

—J

Junior

■
,

☆

SECURITY ANALYST

^

Wanted
A

firm

has

an

New York

48 Wall Street, New

office for a junior
Chicago

in

rience

Excellent

Co..

Abler, Coleman
Members New York Stock

Members New York Curb

York 5, N. Y.

Exchange

Exchange

•

opportunities for
growing de¬

Boston

Philadelphia

•

Cincinnati

••

St. Louis

Pittsburgh

•

7

New York

15 Broad Street

with general expe¬
listed securities..

analyst

\

CO.

C. J. DEVINE &

Exchange
opening in its

national Stock

Cleveland

•

San Francisco

•

June 30th, 1945.

advancement in

Write details of
experience and education.
Our
employees have been
notified of this advertise¬
ment. Write Box 198, Doremus
& Company, Advertis¬
ing' Agents, 120 Broadway,

partment.

.New York

☆-

We Wish to Announce

5, N. Y,

'■

;

position with Wire
give service and
execute orders In over-thecounter securities. Box M 621,
Commercial
and
Financial
Chronicle,
25 Park Place,
New York 8, N. Y,
to

House

Exchange

BUILDING

1051 PENOBSCOT

Wishes

j DETROIT 26,
And That We Have
i

Gray, Shillinglaw & Co.

Moreland & Co.

Member Detroit Stock

•

Unlisted Order Clerk

the Incorporation of

change

the

announces

IL A.

MICHIGAN-

Acquired the Investment

Shillinglaw & Co.

investments

american

CO.

trust

Nashville
PRIVATE

WIRE

CONNECTIONS TO

.

there

New- York,

Capital Gains Taxes

Cleveland, Toledo, Chicago

BRANCH

WASHINGTON, D. C., July 3
—Both Judge Fred M. Vinson of
the Office of War
Mobilization
and
Reconversion, and Budget

name TO

its

Securities Business of.

-

ALLMAN, MOSELAND &

Considering

Vinson

of

;

Battle Creek, Bay

OFFICES

be

will

no

3,

building

Tennessee

in

change

personnel

'

IN

City, Lansing, Muskegon

EFFECTIVE JULY

1, 1945

July 2, 1945

Director Har¬

Smith,

old

D.

are

now

pon¬

dering recom¬
mendations of
Stabilization

designed

Mr. A. Glen

to

assets.

Aclieson

that

Y

•

Elbert J. Evans

has been admitted

A

as a

general partner.

has become

report

recent

that

pleasure in announcing

specu¬

lation in cap¬
ital

We take

pleasure in announcing that

Davis

liam H.

check

We take

Wil¬

Director

General Partner in our firm

with headquarters

OES

the

a

at

recommenda¬
tions

We regret to announce

include

raising the tax
on
capital

has retired from our

firm.

"Chronicle" is informed. No

provision is included in the

Eastman,'Dillon

the

roneous,

Lazard Freres &

such

Co.

MEMBERS

Davis

report to Vinson.
If and when the

of taxing^
take some
time. At present the House is well
"cleaned up" on bills of import¬
ance, and there are persistent re¬

NEW

YORK STOCK

15 Broad Street,
New

recommenda¬
tions are officially made public,
this
is
expected
to be done
through a Presidential message to
Congress. Action by Congress to
Jensen the definition of "short-

•

California

Mr. Forrest C. Lattner

is er¬

of 25%

Spring Street

510 South

Los Angeles 13,

gains from its
present
level
Fred M. Vinson

that

&

Co.

EXCHANGE

TSIew York 5,

Y.

York, July 1,1945.
Philadelphia

Chicago

Reading

Eastou

Paterson

Hartford )

term" for the purpose

capital

gains

would

House recess this
All tax legislation

ports of an early
week

or

next.

must originate in
"

If

a

the House.

OES

report, as

the

to

the lines of the

FORMATION OF

MR; WILLIAM W.

HARRISON &

COMPANY
has this

Exchange

Member New York Stock

as

the

Telephone PARKWAY

will be in a posi¬
margin require¬

tighten other uses

of

and

under its existing powers,

Without any further

legislation.




General Partner in our firm

Edmund W. Harrison

—

LADENBURG, THALMANN & CO.

S356

increase

credit

day been admitted

CINCINNATI 2

Federal

ments

a

CUMBERLAND

BUILDING

1611-15 UNION TRUST

discussed recently

"Chronicle,"

Reserve Board
tion

THE

Presidential recommenda¬

tion is made along

in

ANNOUNCING

William F. Dohrmann

—

Gilbert A. Davis

July 7, 1945

iflisiiiilsiiifliK

THE COMMERCIAL & FINANCIAL CHRONICLE

72

Thursday, July 5, 1945

il**.

SPECIALISTS

Over-the-Counter Quotation Services

in

'I

REAL ESTATE

for

Security Dealers and

Estate Securities

Real
'

■'

Financial Institutions

:.'v

1929

Since

SECURITIES

Ssligman, liubetkin & Go.

Primary Markets in:
'

1

•

'

'

Hotel St. George, 4's

41

*

.

*

Stock Exchange

Members New York Curb Exchange
Dlgby 4-4950

approximately 96% with an an¬
rent roll of approximately

$600,000.

Sell:

It

Certificate*
and

TITLE CO.

Mortgages

•

Dec.
31, 1943, at which time former
first mortgage bond holders re¬
ceived new bonds on a par for par
basis
and
100%
of
the
equity
was

reorganized

Indenture

of

terms

of

as

stock.

PRUDENCE AND

-

v'
the
new

Subject to the maintenance of
working

capital

and

a

net

income

reserve

(3) To payment of additional
1^2% non-cumulative interest.
(4) Any

remaining income to
sinking fund until issue
reduced to
$2,000,000,
thereafter Vz to sinking fund and
be paid to

has

'/2 for dividends.
Statement
come

of

of

fund

a

each

for the year ended
as

April 30,

year

April 30th is applied
(1) To payment of cumulative

89 Broadway. N.Y. 6

Teletype

Dlgby 4-2570

NY 1-1942.

.

interest at rate of 3% per annum.

Expenses, taxes, etc.-s.-443,468.18
Avail, for int., etc.-r--$209,685.39
Interest paid at 3%—__
I

Balance

To

136,785.00

capital

To payment of a maximum
$75,000 into a sinking fund,

Bal.

FIRM TRADING MARKETS

w.

„

sinking fund $61,-361.86

or

Vice-President of W. R. Grace

Montgomery St., San Francisco 4
Bell Teletype SF 61 & 62

Parcel! Re-olocted
Ganson

Purcell

chairman

:•

has

by

Our

Holds There Will Be Serious Post-War

"Open Door" Be Given

an

<s>-

say

ing,- however,
that

a

that call for unilateral

com¬

rect

discus¬

sion

t h i

of

Controls.'

s

combinations

subject re- ;
quires
that
some
special
attention

b

attacks, di¬
indirect, upon interna-^
cartels, or that envisage any

or

tional

off any

shades

or

degrees

or

such

actions,: must cer-j
tainly be conditioned by, and will
in turn just as surely affect the

e

status of cartels in Post-War Eu¬

given

to
the
"interna-

rope—their

tional"

particular

as

as

grpund..

well

principal

I

it

take

breeding

that

it

is

my

job to consider with
you, against a background of Eu¬

to the "car¬

ropean

ac¬

to

in¬

and what results may be
expected

aspect

that

volve

.

■//•'."■•v..

re¬

Secur-

h

tance

of,
or
ticipation

d i

mer-

ing
industry,
banking and
"transportation.

-

s

I view

the

is

The single point I wish to
this:—The
repeatedly

cartels

against

or

in

W.

Lewis

conventions

international

international

of

cartels,

to.

-

to certain

war

the

simply
means

end.

to

as
an

That end

Outlook

The great ma¬

make

jority of

of-the

page

102)

,

/

Returning Servicemen

Communistic

have,

however,

are

may

headed

trade by

real

long as
people

the

to

spend.

Re¬

member

that

where

had

we

no

should

unemployment, then

see

civil

a

Large Cities

prosper¬
so

have money

resources

countries

for

ity

Yet the Plan,

Fund's

and

unemployment, we have not much
to fear.
If, however, when we
next have 15,000,000
unemploved,
walking the streets, Russia and the

indust ries,

form, does not deal
and effectively with
this problem because it provides
no necessary relationship between
use

com¬

munities

realistically

the

to

on

Future

Business

in its present

Plan

(Continued

War will have slumps and this applies

industries.

which tdnd to restrict and control
international trade.

Bretton

Fayerweather Hall, Columbia
University, New York City, April
11, 1945.

PARK, Mass.—It is generally agreed that there will
be a few years of excellent business in the United
States following
the collapse of Japan. Perhaps certain sections that have

practices in re¬
international -money

monetary
provisions of

Woods

by Professor Lewis

at

or

Roger W. Babson Talks

the elimination of

gard

proposals,

BABSON

stated
objective of the Fund is-the pro¬
motion

American

*An address
Ben

Dr.

over-expanded during the

a n

various

tremendously

-

national

of

accep¬

monetary or economic expert but simply that of a business man en¬
gaged for thefpast thirty' and calculated to attain the stated
.years in inter¬
objectives of the Monetary Fund.
c

attitude and

practice, thq
reception which we may
expect to be accorded by Europe
kind

in interna¬

;

& Co.

My approach to the Bretton Woods Proposals is not that of a

been

the

to German Patents.

tonight, as it has been throughout this series, is with
policy toward international cartels.
It probably goes

concern

American

par

Trading Company Executive Points Out That the Objectives of the In¬
ternational Monetary Fund to Promote International Trade Will Not Be
Attained Because the Fund Has No Power During First Five Years to
Deal With Exchange Restrictions.
Holds World Trade Cannot Wait for
Relief and Tells of Restrictive Effects of "Blocked Exchange" in the
Sterling Area. Says a Flourishing American Export Trade and Large
Merchant Marine Are Essential to Post-War Full Employment and Urges
That Plan Be Amended to Give Immediate Power to Eliminate Exchange

Chairman of SEC
elected

German Cartels and That

tional

s.

J. S. Strauss & Co.
■?155

By harold j. rgig* >

>■.-

stock

w.

Economic

\merican

And Exchange Restrictions

stock

Midtown Enterprises
5/64

and

of
problem.
Programs
of

The International Fund

.

Consolidated Rock Products
and

Trade

tion

s.

Calif. Consumers Corp.

bonds

Free

Problems, and Advocates a Firm Attitude by the United States
Against Them in Our International Negotiations. *Says Cartels Are
Not Only Native to Germany, but Are Also Imbedded in That Nation's
Economy, and Have Been Used as a Means of Political and Economic
Aggression.
Urges That the Allied Military Government Root Out

tel"

—

(L. A.)

4-6/48

and

Toward These Organizations.

-

11,238.53

.

Broadway Motors Bldg.

bonds

of

Progress, and That They Are Constantly Shifting in Their Nature and
Effects, Professor Lewis Analyses Our Own and the British Attitude

the

Ambassador Hotel: Co.
5/50

$72,900.39

——

for working

reserve

operated semi-annually.
—

Holding That Cartels Are Destructive

plete

(2)
of

.....

Formerly Chief of Cartel Section, Foreign Economic Administration

without

follows:

$40,000

fiscal

;

Professor of Economics, Oberlin College

available net in¬

1945 is summarized

for taxes available

for

been

ended

SI EG EL & CO.

Post-War
By DR. BEN W. LEWIS*

Cartel

Gross cash receipts-—-$653,153.57

bonds provide that:

REAL ESTATE BONDS

1

San Francisco

The Status of Cartels

Present occupancy is*

nual

We buy and

Street, New York 4, N. Y.

Chicago

3% Interest and Has Sinking Fund of $61,661.86
For Year Ended April 30, 1945

$4,950,000.

NY 1-953

Boll Teletype

HAnover 2-21 CO

"

The property owned by thd Broadway Trinity Place Corpora¬
tion, consists of a 38 story office building completed in 1928, located
at 39 Broadway, New York City, containing 330,000 square feet of
rentable area, situated on fee owned land comprising 17,150 square
feet with a frontage of 89 feet on Broadway and'extending back
about 190 feet to Trinity Place.
The 1944-45 assessed valuation is

SHASKAN & CO.
PL.,N.Y.

46 Front

•

BROADWAY TRINITY PLACE CORPORATION
Earns

Hotel, 4's

Members New York

' '

•

1

■

N. Y. Athletic Club 2-5's

f

Byroad Street, New York 4

Dealers Association

Real Estate Securities

870-7th Ave. 4^s
(Park Central Hotel)

40 EXCHANGE

York Security

4H's

165 Broadway,

Beacon

Established 1913

Incorporated
New

Members

-

Those

war

Small

vs.

returning

'

we

here.
Cities

'

servicemen

who fear this possibility should
seriously consider where to locate
after coming back to this country.
They should avoid necessarily re¬
turning to their own communities

only $7 billion

if other

and the elimination of

in

lish and facil-

to

ets

i

and

opportunities and safer conditions.
Here again I want every man to

is

to

t

a

reestab¬

t

e

the

movement
Ganson FurceU

ities
Mr.

and

Exchange

Purcell

became

Harold

Commission.
chairman

in

January 1942 to fill the unexpired
term of the late Edward C. Eicher.
He

was

elected for

a

full term the

following June and re-elected in
1943

and

1944.

BUY

tional trade.

With




.

a

lifetime spent in inter-

national^ business, I
vitally
and

interested

am, of course,
and
concerned

thoroughly in sympathy with

*A

fore

WAR BONDS

interna-

means are to be
judged by
the effectiveness with which
they
promote that end.

any

BUY

Roig

The

mote

BUY

J.

of

intended to pro¬
international
cooperation

measures

statement
the

by Mr.

Senate

Roig be¬

Committee

on

Banking and Currency, June 25,
1945.

restrictions
international trade movement,

it gives the Fund no power
during the first five years of its
operation, the Transitional Period,
to deal with exchange restrictions

at all.

-

of

Fund

("Article I," "(i)" and
"to promote interna¬
cooperation" and
"to facilitate the expansion and
balanced growth of international
trade."
These objectives are to
be attained through consultation,
collaboration, exchange stabiliza¬
tion and elimination of foreign
"(ii)"

pock¬

and

drawers
Roger

W.

Babson

years

have

ago

$27

cash
s

i

x

we

bil¬

are

tional monetary

exchange restrictions.
To accom¬
plish these purposes a Fund is
(Continued on page 106)

decide

the

holding to spend or invest as
soon as a fair opportunity arrives.
How long will it take for our

my

people to
what
Most

will

spend this money and
happen
afterwards?

economists

are

agreed

that

should be prepared

for trouble
any time after 1950.
As to what
form this trouble takes depends
we

largely upon the success or failure
of the Russian Communist experi¬
ment.

If, after 1950, Russia, with

the rest of the world,

suffers from

communities offer better

the

question

for

himself,

but I believe that the small cities
are far safer in the
long run than

lion at the present time which we
are

The first two stated purposes
the

our

now

large

cities.

statistical
one

When

starting

business, which is

of the

largest of its kind

in the world, I selected
Wellesley,
Massachusetts, a town of only

about 5,000 people.
The question,
however, natur¬
ally arises in the minds of service¬
men

go

"what

to

am

a

Anticipating

I

going to do if I

small

this

community?"
I am

inquiry,

prepared to give the following
swers.

These

are

(Continued

an¬

industries which

on

page

105)

lVohime

73

CHRONICLE

COMMERCIAL & FINANCIAL

THE

Number 4400

162

ADVERTISEMENT

NOTE—From time to time, in this space;

ALL

article which we hope
A mericans.
This is number ninety-four of a series;

there wilt appear an

INVITED

INgUIRIES

will be of interest to our fellow

SCHEMLEY DISTILLERS CORP.,

ISSUES

SECURITIES

HAWAIIAN

That Button !
who invented the

We don't know

NEW YORK STOCK

EXCHANGE

NEW YORK CORN

EACH INGE

invented the lapel.
we do know that there is a new

even

STOCK EXCHANGE

But

BUILDING

1SOO

RUSS

SAN

SAN FRANCISCO

PINE STREET

NEW YORK

don't

lapel buttonhole; in fact, we

MEMBERS

J2 0

NEW YORK

FRANCISCO 4

know who

appearing, these days, ort
lapels of thousands of lads and
lassies who left their homes and
button

5

the

//%/•

INVESTMENT

oi
Boren Bill

Additional Views by Members
;

Mease Committee on

Members New

as

deals

"it

with

--

"

Rep. GEORGE

,s»* <

• -

the

to

as

I

curities.

the SEC. I am

has

it

Dwi'ght L. Rogers

constructive

and

piece of
mil¬

saved the public

and

lions of dollars.

Rep.

RICHARD F.

HARLESS

Arizona

and

George G.

belief that

It is my

ties

the emblem were

States

Municipali¬

should have full

to

see

Sadowski

what amendments

ple the SEC,
splendid job.

which has done a

j

act

Was

ail

think that the original

intended

to

cover

interested

therefore

of

extent

pressing for

: f

Arkansas
I do not

I

bond

-

myself

representatives of the SEC.

expressed its willing¬

The SEC

to do so.

the

recently

I understand that
proponents of the

pending legislation

results

i-

can

"across

N

again and their old jobs are waiting
for them, American business, you
remember,

the table" discussion.

am

be

attained

by

John

B.

and there¬

fore, for the present, I
rather not comment on the

would
matter.

Rep. PEIIR G.

HOLMES

ing?" Let's know that it's an em¬
blem of distinction—that button!

/

MARK MERIT

.

Corp.

of Schenley Distillers

Massachusetts

strongly in favor of this
bill and will do what I can to help
"I

we

am

P.S.—Buy War Bonds!
Japs and finish the

Finish the

job!

FREE — Send a postcard or letter to
Schenley Distillers Corp., 350Fifth Ave.,
Y. f, N.. Y., and you will receive
a booklet containing reprints of earlier
articles on various subjects in this series.

N.

this

In

should fail, then
it must necessarily become a mat¬
of legislative

Rep. R.

Richard F. Harless

Murphy and Louis Oetjen as comanagers.; The firm now has five
branches in Connecticut, the others

action by Con¬

entirely
Federal Gov¬
'

control of their finances,

independent of the
ernment.

rington, Waterbury and

,

Municipals should be exempted
SEC jurisdiction arid I am

Bruce G. Hoblitzell

from

hopeful that the Boren Bill
be passed at an early date.

Rep. ALFRED L. BULWINKLE
North Carolina

will
The

To

Municipalities
have the same

regret that I cannot comment
the bill at its present stage. (In

Fad jo

Cravens

interest

issues of States and their

political

and the purpose of
the Boren Bill is to make this per¬

subdivisions,

'

fectly clear.

New Jersey
am

in

favor

of

p r

the purposes

sought by the Boren Bill.
I do
not think that rules and regula-

s,h?uld be adopted by the

in

be

can

the

that

see

no

to the

SEC re¬

juris¬

fraud

not

convinced

ing on the bill,

of the hear¬
Mr. Bulwinkle, in




that there
a

has

character, in

connection with the issuance and
sale

of

warrant

municipal
some

of

bonds,
the

as

rules

to
and

;

,

now

as

— Rep.
John W.
Pennsylvania, who is

a

prior

Fahnestock Opens

that

all security is¬
up

Carroll Reece

to

$1,000,000 should be
registration.
The
expense and difficulty
encoun¬
tered by small issues is r decided
deterrent, to economic activity.

$500,000

or

exempt

from

thereto he was

& Co. for a number

of years.

•'

j

■

)

them of Arthur

I think

of

trader;

with Dunne

member of the House

defined.

sues

as

C.

Inter¬ Arthur J. Spragg Joins
state
and
Foreign
Commerce
Committee,
has
informed the Roth & Company Staff
ALLENTOWN, PA.—R6th and
"Chronicle's" correspondent that
he is opposed to the Boren bill Company,
818 Hamilton Street,
and will work for its defeat.
announces
the' association
with

also

over

been fraud of such

the

that

so

Note

Murphy, of

objection

diction

am

possible."
Editor's

public is not
imposed upon,
although I see

pressed in the act. I was one of
the original drafters of the SEC
legislation. I am strongly in favor
of legislation that seeks to pre¬
vent fraud on the investors, but I

February, at the time

as

will be in effect as :soon

relied upon to

taining

are

enactment,

measure

Hoblitzell is forming

C.

floblitzell & Co. to en¬
gage in an investment business.
Mr. Hoblitzell has recently been
associated with Stroud & Co., Inc.,

Bruce

Holmes

I hope we can ex¬

passage.

pedite

think

with the intent of Congress as ex¬

Bullwinkle

its

eventing

not in full accord

SEC which

L.

Peter G.

Gov¬

fraud. I

Open Own Firm

Bruce

the

ernment

they

Rep. CHARLES A. WOLVERTON

I

Federal

as

TorHartford,

being located in New Haven,

CARROLL REECE
Tennessee

A.

that

so

gress..

on

familiar with that emblem
don't have to say,
"What's that button you're Wear¬
Let's get

Sullivan

and interested groups,

is

the event that it

ter

I

promised them their

jobs when they returned and
keeping its promise.'
,
"" .

old

that good

I

honorable dis¬

charge buttons lately. The wearers
are ready to take
up their jobs

likewise con¬

hopeful

sented.

•

Fortunately, however, we are see¬

ing more and more

•*.

.

hundred of our boys and

girls enter the armed service. Some
of them will never be back with us.

conference between

a

nearly

We, here at Schenley, saw
seventeen

in interest," including

parties

ness

to

and

suggesting

for

preservation of their country .

the

original act to protect investors,

the

CRAVENS

FAD JO

Rep.

will yet

I do not want to crip¬

be offered.

The wearers of
ready and willing

give their all, if necessary,

to

witnesses

by

that button because

l

,

during the
committee hearings on the Boren
Bill, I became convinced that it
might be possible to effect the
purposes without the adoption of
any new or additional law, pro¬
vided the SEC would confine its
rules and regulations to what I
believe had been -the clear intent
of Congress, when it passed the

sented

done a neces¬

work

oughly familiar with

SEC

conference of the

a

public works possible.
As a result of the evidence pre¬

general, and I

sary

committee, there will

the

We

ought to become thor¬

that will make .such

of securities

against
SEC
in

think

before

That

"Emblem

Nobody Knows" .

Bill is still pending

The Boren

shortly be

J-

ipalities and States in the issuance

regulation

the

it is a badge ofhonor.

by

be

each

that it was known as
the

■■■'■'.

* ■

*

from

ties should

the

SULLIVAN

Missouri

the post-war pe¬
riod when public works will oe
an important part of maintaining
employment, we must be careful
that we do not handicap Munic¬

State and mu¬

not

'

spread wings in¬

circle. More and more,

day, it is becoming known as

As we go into

nicipal securi¬
exempt

Rep. JOHN B.

and

they have the; effect of curtailing
the issuance and sale of such se¬

that

hold

to protect the public,

essary

sov¬

ereignty

a

•

<

speak of depicts an

Discharge
Pin, but it wasn't very long ago

they go beyond what is nec¬

me

of

score*

State

side

and wher¬

'f

,

American eagle's

;

decision yet
the Boren Bill. I want first

of such buttons iti

United States Service

regulations that have been adopt¬
ed or contemplated. It seems to

I have not made a

fundamentally
correct.
On

look.

The button we

Phone LD-159

Home Office Atlanta •

!

G. SADOWSKI

Michigan

is

it

•

ever we

"ZZSB22LtZZEESLr

.

think

will be millions

—

ed ■' securities,

I

Wires

Private

have been

sight, wherever we go

Of

STOCKS, COMMODITIES

BROKERS OF BONDS,

—Editor.)

exempt-.

,

and

York Stock Exchange
Exchanges

UNDERWRITERS AND DISTRIBUTORS
INVESTMENT SECURITIES

-

Insofar

Now they

Other Leading

>

(Continued from page 70)
reply to a request by the "Chron¬
Rep. DWIGHT L. ROGERS
icle" for comment on the bill;
;
.
Florida
cited the late Samuel Insull as a
The purpose and intent of the
reason why there should be pro¬
Boren Bill is good and construc¬
tection of investors in municipals1.
tive.

Armed Forces J
honorably dis¬
charged for various reasons. We
hope it won't be long before there

their jobs to join the

BANKERS

New

Branch in Danbury
Fahnestock &
the

New

York

of
Stock Exchange,
Co., members

opening of a new
branch office at 234 Main Street,

announce

the

Danbury,

Conn.,

with Hugh. F.

past five
been

J. Spragg. For the

years

Chief

Mr. Spragg has

Investigator

sion
with

and formerly was

for

the

Commis¬

Pennsylvania Securities

associated

several investment firms in

Philadelphia.

.

!

Thursday, July 5, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

74

Trading Markets In

We Maintain Active Markets In—•

—

.

Central Electric & Gas
Fuller

CHICAGO SO. SHORE & SO. BEND RR. Com.

Mfg. Co.

Globe Steel Tubes

Securities; Company

First

j

Grocord Rubber

DEEP ROCK OIL CORP. Common

■

-

V

Enamel

Nu

Chicago

9F

GALVIN MANUFACTURING Common

-

Stockyards Pfd.

United

•

•

1

,

i-

•,

"

.

•

•'

1

,

.

Announces the removal

C. L. Schmidt & Co.
Established

I

1922

120 South La Salle Street

of its offices to

:,

,

"T1".

'

'

r

'

Tel.

134 ..South
i

Eesommendations and Literature

of Securities Dealers

Wholesale Distributors
Teletype CG1399

Telephone ANDover 1520

Canadian

1

briefly describing

Canadian

July 2, 1H5

'

industrial

curities Corp.,
New

650 S. Spring St.

135 La Salle St

Stocks

*

-

Undervalued

Stock

Chicago

Board of

■

gives the green light to both television and frequency
radio just as soon as war conditions permit;■'

Trade

"It is

Garrett Corp.

will

ahead
on

Midland Realization

a

b

a

si$.

Hundreds

will be

4, ILLINOIS

4068
Direct Private Wire to New York
Bel!

Randolph

.

.

are

sets

the

i

■■

Aircraft

Howard

madje

be

available

:

'

moderate

Common., j

at

the

industry.;

135 South La Salle

Street,

Principal

Office*

To Oar

Cities Throughout
Country

the

ple

*

now

at hand

rapidly to become one of the
nation's important industries in
the post-war years.
Television is
going to provide a new, excitihg
service for the public, so that peq-

In

can

see

well

as

as

listen to

the great news events and the best

Burton-Dixie Corp., Com.

entertainment in their

Steel & Wire, Com.

Gibson Refrigerator

will

research, engineering, produc¬

tion,

sales,

countless

service

and

jobs

new

program

creation.

Mfg. Co., Com.

*Wells-Gardiner & Co., Com.

*Pro$yectus Available on

homes.

in

Co., Com.

Globe Steel Tube* Co., Com.
*Oak

own

It

create

establishes

radio

on

a

»;• V;\

}

frequency modulation
high-quality basis that

investment managers.
last three years he

a

Lend

renegotiator

contract

a

Administration

for

31, 1945, may be had upon
request to J. A. White & Com¬

May

Shillinglaw, Bolger & Co.

Rockford, III.,

t

.

,

'

MEMBERS

'

CHICAGO BOARD

,

cur¬

auto¬

outlook—H.

American Aviation Inc.—
of interesting possibil¬

up

mail and cargo without neces¬

operation—G.

sity of air fields for
New York

OF TRADE

Co., 40 Wall Street,

5, N. Y.

"

Ampco

'

>/P

•'

I

A

—

INVESTMENT SECURITIES

•

Nb FEES

Inc.,

.

_

freedom from mar-

SOUTH UA

SALLE

,

available

is

a

report

on

I

STREET, CHICAGO 3
Teletype CG 1070

attractive post¬
prospects—Walston, Hoffman

—discussion ;of
war

3

Street,
'

Art Metal Construction Co., Inc.
120

Telephone State 5350

™m<j£/evelopment Co.




South La Salle

Maryland Casualty Co.

Fl N AH CIA Lket losses—

1?5 SO. LA SALLE ST., CHICAGO

209

Also

Insured

Principal, complete

Riverside

and

Co.

are

circulars on

Steel,

&

Kingan &

Cement,

Cross

condition

of

Company—Analysis
and

post-war

pros¬

pects—F. H. Roller & Co., Inc.,
Ill Broadway, New York 6, NV Y.
Also available a memorandum

&

Goodwin,

265;

Carlos

San

tion.

Milling

•

.

Co.,

Ltd.,

-

Dunning
circular—J.

Color — Descriptive
F, Reilly & Co., Ill

Broadway, New York 6, N. Y.
Elk Horn Coal Corporation and

Lawrence Portland Cement Co.—

Report on attractive possibilities
tor price appreciation in these
two industrials—Morris Cohpn 8c
Co.,

42

Broadway, New York 4,
*

N. Y.

Metals, Inc. —Current
Mlnton
&
Co.,

Chicago 4, 111.

Savings & Loan
Associations about 400 Represented—
located in every section of the Coun¬
try, offer Liquidity, Insured safety of
_

current

bulletin—Sills,

your FUNDS DIRECT

_

a

UNDERWRITERS! and DISTRIBUTORS
.

.

is

study of Utah-Idaho Sugar.

Estates, Pensions.

Federally

Iron

which picks

To Yield...

hags

Also available
Central

».•■; .>

.

including a reprint of an article
on
prospects for those desiring
an
interesting speculative situa¬

City 1, Utah.
Also
available

select from our Lists and

■

on

..

Amalgamated Sugar—Late an¬

purchased thru
us
by
Trust Companies, Trust Departments,

-

N. Y.

alysis—Edward L. Burton & Co.,
160 South Main Street, Salt Lake

been

Mass.

C., 60 Beaver Street, New

.

AGGREGATING $25,000,000.00
Have

10
9,.

velopments—Lerner
&
Co.,
Post
Office
Square,
Boston

The
,

—

Certificates

i

Corp..
de¬

recent

on

Hentz &

Federally Insured
,

A—Bulletin

Building,
J

the

reconversion

Cement

Consolidated

Class

,

:

,

rent outlook—also memo on

L. Ohrstrom &

CHICAGO STOCK EXCHANGE

■

,

.

ities of the company

'

*

;

and

All

.

»

} '

discussion

Teletype CG 405
-

"

I

•«;

Salle St., Chicago 3

Indianapolis, Ind.

Central

Cincinnati 2, Ohio.

•;

York 4,

Stock Exchanges
Chicago Board of Trade

Tel. Franklin 8622

Union

pany,

Members Principal

10 So. La

pany.'' •' ■•••

.f

of

Chronicle"

Financial

&

Fire

Paul Revere Fire Insurance Com¬

of

stock Market Comment

;

Insurance:

York

is-

Inflation by J.
Austin'- White — complimentary
copies of reprints of Mr. White's
article published in "The Commer¬
cial

New- Hampshire
Company,
New
Insurance
Company,

Company,

Fire

Inci,

,:

Prospects

;

mobile

Army Air Forces.

District

Company,

Insurance

ance

»

liaison officer for the

Lease

Fire

Merchants & Manufacturers Insur¬

Street, Philadel¬

phia. 9, Pa.

&

,

& Company,

123 South Broad

partment. For a period of eight
years prior to 1942, Mr. Pross was
vice-president of Vance, Chapin

has been

School

Reinsurance

Globe

poration,

appraisal ; of.. all.. out¬

Stroud

memoranda

are

Cor¬
Republic In¬
Street,. surance Company, Great ^Ameri¬
y: can Insurance I Company,. Home¬
trial

complete

—

,

available

Employers

stead;

sues

Co., 44 Wall. Street,
New York City, members of the
New York Stock Exchange, an¬
nounced that Carr F. Pross has
become associated with them in
their investment management de¬

the

Front

-

Philadelphia Boiids

Philadelphia

&

Paul H.Davis & Co.
Established 1916

Insurance

&

'

.

Also
on

standing City of Philadelphia and

Staff of Shields Go.

& Co., Inc.,

46

Bureau.

York, N. Y.

mid-year

During

3, Md.

paper

"

Garr F. Pross Joins
Shields

ten

issues—a special free

tation
New

-

;

"The Commission's decision also

Request.

ser^ic^s/';'.

and

offer is available—National Quo¬

in

gress

Central 7540
Wire*

share

indicates that television will pro¬

CHICAGO 3

Wall:
i "'v

14

Co.,

Surety

Central

cloth

two

includes

volumes

>

bound

pro¬

j

"All the evidence

*

CG 530

for both

this great new art.

Incorporated

resume/civilian

can

bound

the frequency allocations

lishing

the marvels of

E. H. Rollins & Sons

&

Hammill

Street; New York 5, N. Y.'

Monthly Stock and Bond Sum¬

ice* which

much
radib

television sets by definitely estab¬

can

John Ballantyne

the

duction of both FM receivers and

the range of a
t r arf s'mitter

J

.

when

time

cost

one

Oak Mfg. Common

brings

Commission

nearer

that
every¬
within

so

&

Corporation—statistical memoran*
the door to maries—May be had at a cost of
dum
Mackubin, Legg & Com¬
viz each per year, or a total of
progress that the days ahead
pany, 22 Light Street, Baltimore
sure to bring.
The action off $144 a year for the complete serv¬

the

quality

-

receiving

Leece Neville Common

"'ii i;

Post-war outlook—Shear-

—

son,

Company,. 61
Broadway, New York 6, n. Y.
,

•

Canadian Pacific Railway Com¬
pany

copy—Arthur

per

Wiesenberger

"

an¬

investment com¬

on

panies—$10.00
is to be conr

Bank- Building; Boston

9, Mass.''

by its decision opened

years.

High
will!

Wharf Co.^-Descriptive
Pont> Ilomsey: Co„v

Boston

—

five

CG 537

System

next

-i* y

iv .v

circular—du

revised fifth "an¬

edition of textbook and

nual

possibly alytical guide

gratulated on the careful, studious
way in which it has investigated
the whole allocations problem and

erectefi

the

in

of

sub|

Companies1945

Edition-— fully

•

"The' Commission

;statibnjs

new

208 SOUTH LA SALLE ST.

.lead to its fullest

development.'

corrimer-

i al

c

years

month's trial

one

Shawmut

public and over the

service for the

rapidly

—

Investment

■..■...•'T

interference-fre^

provide

Present

at

scriptioin,":$5v--:-- 'Arnold; Bernharq
Company, 350 Madison ; Avenue'
New York 17, N. Y.
\r\
\

modulation

.;■.■■■.

will

g6

vision

Telephone

*•.

now a

fact' that teler

;

Midland Utilities

CHICAGO

Survey

sion

Exchange

Chicago

Boston Terminal 31/2S of 1947—

Analytical report describing reor¬
ganization status and proposed
plan—Greene
&
Co.,
37
Wall
Street, New Ybrk .5, N. Y.,
i.

and

Time—The Value Line Investment

lowing comment on the Federal jCommunications .'Commission deci-r
as regards television .and frequency modulation:
^ ; - .v; r
"Today's decision by the Federal Communications-Commission

Freo.W.FairmanCo.L
Members

made, the fol¬

Over-Valued

Are

Which

President qf Philco, on June 30

John Ballantyne,

| SINCE 1908

Central

Place}

York 5, N. Y.

; How to See for Yourself Which

Trinity 3908

CG 99

State 6502

*

Pizzini & Co.,

by B. W.

Inc., 25 Broad Street, New York
4, N. Y. ..'V"-,■■

LOS ANGELES 14

CHICAGO 3

Direct

tractive

and' public

40 Exchange

Railroad—dis¬

cussion of situation "considered at¬

100

companies—Dominion Se¬

utility

DISTRIBUTION

Boston" & Maine

Stocks—A

Common

pamphlet

MARKET

SECONDARY

interested parties the following literature:

;

_

'•

For'

UNDERWRITERS

pleased to sentI

It is understood that- the. firms mentioned mill he

Chicago 3, 111.

Pacific Coast

—

~

Minneapolis

*

Igalei-Bfdce? Investment

direct

a

private ivire toNewYoi'k City

Member, National Association

Middle West

Teletype CG273

Pittsburgh

LaSalie-Street

the installation of

and

•

\

%

'

CARTER H.C0RBREY&CO.

Incorporated

'

Philadelphia

New York

f

Tele. CG 271;

Randolph 6960

;

Telephone State 8711 ...rj.*

r

;

,

CHICAGO 3

'

.

135 So. La Salle Street/Chicago 3

j

"
•

H. M. Byllesby and Company

j
-

-- -

■

Montgomery

Street, San Francisco 4, Calif. Also available is a report on
Wilcox G&v Corporation*

Fort

Dodge,

Southern

Des

Railway

Moines

&

Company

—

Oqe-page analysis —Comstock &
Co., 231 South La" Salle Street,
Chicago 4, 111.
General Industries Co.—Recent

report — Mercier, McDowell
&
Dolphyn, Buhl Building, Detroit

26, Mich.
Also available

a

report

on

tional Stamping Co.

(Continued

on page

75)

Na¬

Number 4400

.Volume 162

prepared

We have

>'•

memorandaht

a

'

on

We have

MIDLAND REALIZATION

a

and

T

;

available

Copies

,

American Service Co, $3,00

request

upon

Bausch and! Lomb

KITCHEN & CO.
135 South La Salle Street

Mastic-Asphalt Co. Common

135 SOUTH LA SALLE STREET

New Jefferson Hotel Co.

Teletypei CG 1200

'

Telephone;.Dearborn 9600

Optical Co. Common

Consolidated Gas OtiL Corp. Common

I

V- _i N

:' "J ' P.-: ■

INCORPORATED

BONDS

\

Hydraulic Press Mfg. Co. Common

O'CONNOR & CO
■'

TRACTION

Part. Pfd.

Anheuser Busch Inc. Capital

.

v.'

CHICAGO

continuing interest in the following:

American Barge Lines Co. Common

MIDLAND UTILITIES COMMON
v

75

THE COMMERCIAL & FINANCIAL. CHRONICLE

.<

L(ST.

Chicago 3, III.

4-0% Bonds

Tel. STAte 4950

Tele. CG 573

J

LOUIS)

Textron Inc. Common and Warrants

Trailmobile Co. Common

^Deal^Brofeer InyestniM 11

Cj

WE

Western

Galvia

leeommetidafioits and Literaiiise
(Continued from
V

Guaranty Trust Co.—BulletinLaird,
Bissell: &
Meeds, - 120
Broadway, New York 5, N. Y.

notes—C. E. Unterberg & Co.,

Broadway, New York 6, N. Y.

■?'

Pfaudler Co.

V

Jonas
tion

—

Naumburg Corpora¬
discussion of appreciation
&

possibilities—Syle and Company,
19 Hector Street, New York t»,
.

Y.

V.;;

Kingan Company —Descriptive
circular—C. E. de Willers & Co.,
120
•

|

incorporated
Founded 1890

Recent analysis

manufactures

which

pany

•

Pub,

Macfadden

and

Inc.

Sterling Engine.

j Laclede

-

St. Louis

Chicago

Central Public Utilities

and

"A

equipment — Caswell V& Co., 120
South La Salle Street, Chicago 3.

HICKEY-& CO.

I- Also an"analysis Of Mississippi
Glass Co.

*■■■'■

.

'-f; V'

v

Field Bldg.,

Company

—

available —: Herzog

York

Co., 170 Broadway, New

Purolator Products, Inc.-

bf

possibilities

and

outlook

NATIONAL ASSOCIATION

I Electrolux;
Scovill

Edward E

Industries;

American

Great

■

4

Shoe;

ers

) National

' Hardware;
Southeastern

\

Inc., 55 Liberty Street, New York

i

ser,

Common & Preferred

;

* Howell Elec. Miotors

Corp.; Detroit Harvester; Bow-;

Mallory

■;

:

Co.,

&

<

'

Inc.; Mohawk Rubber; Co.;/

WinV'-'T"

TACA Airways; American

,<;v

5, N. y..-.-; V
R.

&

dow Glass.

'■:/

Engineering Corp.
;

Analytical; discussion — Steiner,
&
Co., 25 Broad Street,

I

New York

Broadway, New York 5, N.

4, N. Y.

Interstate Aircraft &

Inc.—

Rouse

/

& Preferred

Franklin County Coal Corp.

Douglas

Waddell

Terminals Corp.

Common

:

Mills,

Alabama

American

Inc.;,"

Parsons, Jr., President of the National Security Trad¬
Association, Inc.,~ announces the appointment, of a Nominating

Motors*b

BrockWay

Mfg.;

SECURITY DEALERS

OF

ACTIVE TRADING MARKETS

late memoranda on:'

i

P.

Common

,

Reynolds Metals Company---an-

Hlohawk Liquenr Corp.

alysis—Mallory, Adee & Co.;fI20

Common

Y..fK-£

♦Circular

Midland Realization and Mid¬
Utilities' Common—Memo¬

.

St.

Lawrence

;

Adirondack
Adams. &

&

circular

land

Railway

randum—Doyle, O'Connor & Co.,
Inc., 135 South La Salle Street,
Chicago 3, 111.
,

Utilities

Realization

and

■ ■ '>
Midland

Company—discussion,

estimating values and 'treating
specifically with ideas on liquida¬
tion of Midland Utilities—Copies
of this memorandum (M-3) avail¬
able
with dealer
imprint at a
nominal cost — reasonable quan¬
tities may, be had without charge

obligation—Fred W. Fairman &
Co., 208 South La Salle Street,
Chicago 4, 111.

or

f Also

available : are / brochures

statistical

and

dealers

information ' for

Garrett

on«

Corporation

and Magna vox Company.

N. Y."'.

Radiator

Co.—Anal¬

N. Y.

Fifth

350

N. Y.

Exchange

New York Curb

Com%

Stocks With Long Dividend

list—Herbert
Co., 30 Pine Street,

Records—Tabulated
Stern

E.

New

&

J

York 5, N. Y.

Committee for the selection of

Distillers' Corporation

Schenley,

appointed are:

New York I.

Avenue,

1

,:

Hoit, Rose & Troster, 74 Trinity
Place, New York 6, N»: Y"i
'ri

I

r

American

new

analysis

-

Bantam Car and

of; Panama
;v'r

Cola.

a

Coca-

.

:

"

"

Chicago 4, Illinois *
Phone State OlOI

Josef C.

York 4,

N. Y.

" \v.

available is

Park, Inc. X

a

'.V

circular.

on

Phillips, Pacific Northwest Co.,

Hotel,-Mackinac Island, Mich.

&

Gruen

on

Printers.'

Watch

and

The advertising

the "larger

Corporation'

•

;

"l

'

V

—

associations should do much better than

and wishes to impress upon the members the

of!

new

ideas for

contracts and towards increasing the space on

the older,ones.

■

'•

' '*

"

-

T

■'

-

•

Calendar of Coming Events
August 24,

CHICAGO 4
231 So. La Salle

at

29

Manakiki Country Club. •

&- 30,
business

Corrugating Corp.—Memo

'

1

.

1945->-Nationat Security Traders Association, Inc. annua!
meeting

and

election

of..officers.-

,

,

'-•'.I*

r

Central

Rejoins

Rubert W.
rejoined the staff of j
Republic Company^ 209;
ILL.

—

has

ICqntral

Chrest,

[

recently been in indus-

>

South La Salle Street. Mr.
who

!

Republic Staff

CHICAGO,
Chrest

Dearborn 1501

St.

Teletype CG 257

Rubert Chrest

has

formerly with Central
Republic, Company
and
prior;
thereto was President of Chrest

try,

194S—Cleveland Security Traders Association annual Summer meeting

28,

Common

COMSfOCK & Co.

necessity of

-

the securing

:

Grand

".-/'v

getting in contracts at an early date.
K.I.M. the committee is most anxious to receive new

August

Noranda Mines Limited — de¬
on current situation—First Colony
tailed study of issues considered a
"blue chip" in the mining group Corporation, 70 Pine Street,, New
York. 5, N. Y.
■
:vA C;-".-v
Arnhold and S. Bleichroeder,

Seattle, Wash.

/'V'""-"':v-\

cities.'

;f

York

Co., -St.

committee bf the National Security Traders Asso¬
report to the members that there is over $3,000

The committee feels the

'United

V.

.

Central Coal and) Coke

;
'

campaign.
;
;
:
Baltimore, Florida, Memphis, Atlanta, Nashville, Detroit, Louis¬
ville, Cleveland, New Orleans, Dallas, St. Louis,. and Minneapolis
have made a very good start, with only half scattered returns from
.

Descriptive memorandum—Buck¬
ley Brothers, 1529 Walnut/Street,
Philadelphia 2, Pennsylvania, v
Also available are memoranda

•V.t
^ '

gross for the 1945

.

Telephone-

We Have An Interest In

; ;->■

;

NSTA ADVERTISING NOTES

last year,

Light

Western

Those

..;,1

The NSTA annual meeting will be held Aug. 28-30 at the

;

v

scriptive circular — Simons, .Linburn & Co., 25 Broad Street, Now

G. Long well

Loiiis, Mo.

-

Wellman: Engineering; Co—De¬

E.

Phillips

Joseph G. Peterson (Chairman), Eckhafdt-Peterson &

I-,v

Also available is a memorandum
on

e.

slate for the ensuing year.

a

D. Frederick Barton, Eastman, Dillon & Co., New York,,
Elmer G. Longwell, Boettcher & Co., Denver, Colo. - - •
James W. Means, Trust Co. Of Georgia, Atlanta, Ga.

,
.

f
Thermatomic Carbon Co.r—Cir¬
cular on interesting possibilities^

orosef

D. Frederick Barton

write to

England

6, N. Y.

*

Teletype CG 361

running in the ChronicleMark Merit, in care of

been

Also

Ill Broadway,New York

moA

■

Schenley Distillers Corporation
they have

Fashion

New

South La Salle Street

231

" -

ciation is happy to

Public Service
Co.—Analysis—Ira Haupt & Co.,
v

—

'

ysis,^ for dealers bnly^—C. E. Un«
terberg & Co., 61 Broadway, New
York 6,

r

,

request

—Brochure of articles

r

'f National

—

on

ADAMS & CO.

Peck, 63 Wall Street, New York 5,

Midland

1234-5

York

—

j

.■

to New

Direct wire

,

Co.,

Lipe Rollway Corporation—Cir¬

;

CG

Randolph 8800

\Vv:'

cular—Herrick,

Chicago 3

•

Co., 120 Broadway, New
York 5, N. Y.
Also available are

7, N. Y.

v

5%

glass

lined and stainless steel tanks

Ward &

Christy

Memorandum

Chicago §c Alton 3s

,

Broadway, New York 5, N. Y.

on

Soya

'

discussing outlook for; the: com^.

Also available is a memorandum

&

—

Co., Inc.

Central

m.

■'

v

StifeL Nicolaus & Company

6J

IN

Mfg. Corp.

Coleman

74)

page

ACTIVE

ARE

Light & Telephone Co. Common

was

Co., Inc., of Minneapolis.

-

f

\

■

Inc., 30 Broad Street, New York 4,
N. Y.
' /
<
" ::
■

Pittsburgh

&

road Co.—memo

look
105
cago

^

Lake
on earnings out¬

Bennett, Spanier & Co.,
La Salle Street, Chi¬
3, 111.
—

Railways — Current

Study—First Colony Corporation,
70 Pine -Street, New York 5, N, Y

CHICAGO,

ILL.—First Securi¬

Company

bers Chicago

teletype numbers Will' remain the
The firm also Announces

same.

the installation of a
>

Public

National Bank

Company—Analysis

and

&
:*




Triisf

current

wire to Reynolds

City.

'

SECURITIES OF

THE

Standard Silica Co.

•

Norton Pap. Mills

direct-private

dc Co.,- New York
"

~

Co.

Collins Radio Co. Pfd. & Com.

Central

Consultation invited

Central Elec. & Gas Co.

Compo Shoe Machinery

.

Rochester Telephone Co.

Telephone Co.
Hamilton Mfg. Co.

Albert Frank

-

'

|»HON£S—Daly 5392

MILWAUKEE

Chicago: State 0933

Teletype

Telet]

WIS.

branches
!
d, N. Y.

New York

Telephone COrtlandt 7'5060

Boston Chicago

MI 488

j

Incorporated

131 Cedar Street

EAST MASON ST.

j

Guenther Law

Advertising in all its

22S

'!

personnel and office location changes
deserve care in preparation, we will
he glad to suggest appropriate^ forms
suitable for such advertisements,
of

James Manufacturing Co.

'

Nekoosa-Edwards Paper

of Chicago,1 mem¬
Stock Exchange, an¬
nounce the removal of its offices
from 105 So. La Salle Street to 134
So. La Salle Street; telephone and
ties

Le Roi Co*

Koehring Co.

Erie Rail¬ In New Location

South

Pittsburgh

.

First Securities Co.

j. Announcements

CONTINUOUS INTEREST IN:

—

|

(

Philadelphia San Fiancisca

\'j

\*j>. ,i >»,««%

THE COMMERCIAL & FINANCIAL CHRONICLE,

76*

11

Western Light &
Gruen Watch

Telephone

Mid-Year

Appraisal7

1

BUCKLEY BROTHERS

A

N.

Hagerstown, Md,

!

by

Telephone—WHitehall 3-7253

Y.

Wire

Private

issues has been

and

us

we

Philadelphia, New York and Los Angeles

>

on

Philadelphia

York Phone
HAnover 2-2280

New

this it?

f

PA.

the

-

Springs

"F

a

u n

d

12 I

a m e n

*

we

believe that the market

414s '67

GIRSTLE Y,SU NSTE IN & CO.
s;osd8t.Phllaaelphia7,7a.
BeUSyirtenTaL
PHLA III,-

-

:

Colombian Paper Co. /.
Jamison Cosl&Coke Co.
fSiila. &

/17v;,

.

fieidhig Coal &
Iron Issues ,/

.

-

Jefferson Cool Co.; •;

\i.

fonopah Mining COi of KoYi

^ SOLP

WM.W. F0GARTY& CO.
Established

^

1919

Lafayette Building,
PHILADELPHIA

Lombard 6400

end

of the

in

war

1918 are

not

in point today. The continuation
of the war. against Japan provides

the

American Box Board Co.
•

Odd Lots & Fractions-

Empire Steel Corp.

com.

Pittsburgh. Railways Co.
All

Issues

Warner Co. pfd; &

com.

Wawaset Securities

H, M. Byllesby & Company
{PHILADELPHIA

OFFICE
Stodk Exchange Bldg. Phila. 2
fbone gittenbowM 3717

Teletype PH 73

third:

A

for

Botany Worsted Mills pfd. & A

'Government

goods will, of course, be
subject to constant and' unpredict¬
able revision until Japan is de¬
feated.
The period of reconver¬
sion will bring uncertainties and
irregularities in earnings. To off¬
set these, we have the carryrback
provisions of excess profits taxes
and the very real. prospect of a
downward revision of tax sched¬

Perhaps

Sale

of

i

Trailmdbile Go. Preferred

In

market: such,

a

as

Ve

.have -

:

the

bullish

most

factor

funda¬

is

Offered by Button & Co.

are

*

/

Common Stock

$1.00 Preference

-.

Bought—Sold—Quoted,

Co;,61Broadway,r.Newf"York:67

j'; 106: :=Retireme^trrPlan^^imveyl
pt; 106 mo^7ree^t:{pehoidir;'|i)Bi»,

slio>^ng(^ehd;.ot:'*e^Io^^

; lay is serious, but mostly from:
Offering of 40,000 shares; of j the angle of inconvenience; In!
$2.25 cumulative convertible pre¬ I an uncertain or falling market,
ferred stock
< $50 par) of The { its seriousness would be greatly

lution Law

ing

& Co.

Cook
The
ated

cbmnany
was
in. 1928 under the

.

name

of

of

outgrowth

largest

of

businesses

passed which will
as

soon

as

the Pension Trust. Department;

of

tual

truck-

cial

Authorities.

This

will

time at least greatly increase

probable and ac¬
Authorities.
It. can readily

May 31, 1945-r—^available -

<

;

Pennypacker 0100

1528 Walnut St.,
""New-York-

.Philadelphia 2

.--Boston
R«ri

■

Chicago

-

"PrnrihlSCn

-




on re-.

quest, from J. A.. White & Company, - Union
Central < Building,
Cincinnati 2, Ohio.
Guide

<

to

United

.

'
7

Nations' and

Allied

Agencies-r-United Nations
Information Office, 610 Fifth Ave¬
nue,

New York 20, New! York—
,
;7

paper.

,

.

Money and the Post-War World
of the United Na¬

;

—The. story
tions

Monetary
and
Financial:
Conference—United Nations In-7
,

.

formation Office, .610 Fifth Ave-'
nue, New York 20; N. Yj—paper—
io«h

.

that with an unusually
large supply overhanging the mar¬
ket,- the

jwpuld be

1

are

named.

as

underwriters.

.

Proposed, sale {by United Gas
Improvement Co;, for $1,100,<

Incorporated

White;-4 Reprints
of > Mr.,
article-in the "Gommer-;
& ' Financial ..Chronicle"
of \

above
very

mentioned delay

serious: indeed, It

•

•,•*»

.

■

Towards Freedom in the Air—•

The

story

Civil

A

United

v

of the
i at i o n

Nations

International
Conference—

Information

Of-1

fice, 610 Fifth Avenue, .New Ybrk
20, N. Y;-^-papef-rT06;
v.7.
War and Peace Aims—Extracts
statements of United • Na- '
tions Leaders (special supplement 1
No. 5 to the United Nations Re-:

? *

from

.

and Stone1 and Webster & Blodget

-

Prospects of Inflatioh^-J;,:^ Aus-;

be; seen

trailers in the United States. Dur¬

ing the war period the company's
trailers
had
been .used 7 by
all
branches- of the armed services

a

:

,

are

the number of

It is the second

manufacturer

Sewer

for

.

the

was

mandatory,

available,, for many
municipalities to construct sewage
disposal plants. A great propor¬
incorpor¬ tion will be done by the creation
materials

The Trailer Co. of America and is

founded in 1840.

it

make

;

ing-LBankerorTrast: Gompahyr 16;
YorlL:6,;sN; Y,^ •
Ipaperr^-ayailable i bn -xeqpesr 7* toy
-Wall- Street;* New

White's

that

Paine,; Webber, Jackson & Curtis

E. H. Rollins & Sons

the;

Edition-rfully.. revised, and: com-'
jprebbnsi^e-:'
feuide c-^4. Arthur: Wei»6riberg.ei:7& *

tin

presently enjoying, this dev

.

Phila, Electric Co,

the tax- *

not least,

•i"JIhYestment';-Gompw|^>^;rq945'v'

: ;

had for the last few years, and

j

and

mentally,

user,

Business Man-s

Common^

!the

might be that to expedite matters,
it has received the Army- icertaim members of the-Commis¬
Navy "E"thrCetifnes; " Following sion would give their, full •time to
dreamers and theorists are rapidly the war the
company intends to Authorities, when necessary.
In
being eliminated from our politi¬ continue to manufacture, assem¬ any ' case; something' should be
ble, sell and distribute truck-trail¬ done to eliminate present and
cal economy,"
ers and semi-trailers, truck-trail¬
prospective delay; 7 •
•
er bodies, dollies, truck bodies and
Corporation Notes
; 7
,t ^
for, tractors
and
trucks.
Another thing* which is un¬
Pennsylvania. Telephone Corp., cabs
has filed ,a registration: statement Plants are located at.. Cincinnati,
fortunate ;and will be hard to
with the SEC covering
work out is that the legal; en¬
$5,500,000 Ohio, Charlotte, North Carolina
1st 2%s,
due 1975, and 72,292 and at Berkeley, - California with
gineering, accounting and other:
shares of $2.10 no par. preferred.
expenses
are -; practically
the
branches in 32 states: :

ules.

v-

law is a good
will be bene-4

Commissionof

,

group are Paul H. Davis &
Co., Bacon, Whipple & Co;, Reinorders holdt & Gardner, and Newhard,

war

,

in

by the:
:Public Utility

.

by that time, will be in
availability."

;

By and large the
pne Jand one which
ficial to the utility
payer, and lasf but

period for gradual Trailmobile Co/was made July 2
enhanced.
orderly adjustment. The final by a banking group headed by W,
return to peace-time production E.
Hutton & Co.
The stock is !
Sewage Disposal Plants :
may scarcely bring a ripple, ex¬ priced to the public at $50 per
During the last session of the
cept, perhaps, to stimulate fur¬ share,
plus
accrued
dividends.
ther the buying of civilian goods Other members of the underwrit¬ Legislature an Anti-Stream Pol¬
which,

included

1

"Certificate

and

substantial

hot

••

prop-

nitely be added in the not too dis-!

.

Dealer Inquiries Invited

arg

tanf future.

indefinite

an

6, PA.

Teletype PH 240

r

want him. /TVlost thinking

.

the"
Act. It is so advantageous to the •
taxpayer and utility, user that ah'
actual, day of reckoning, be put on
the debt that these should defi?

of Public Con-

Gas Lines is the pur¬
chaser./
'
' 7". '
4,7 /"

better.- The market doesn't need
or

sys-

thing which Is sadly Jack-

erties

,

persons

Doctor's

the

use

ing is that gas and electric:

venience," is¬

Natural

is

realize that the economic
dislocations which followed the

QUOTED

One

Pennsylvania Electric jwealth
o f
Edward W. Kling
Co.'s natural gas properties serv¬ Pennsylvania,;
I ^corrections' of ' an over-bought:
i or over-sold market need be of
ing Johnstown to Peoples Natural is • required; If / av municipality
Gas. Co., for $1,194,825, has./been owns a water or sewer system and
f no iconcern to the investor who
createsis: .own::; Authority;. it. maY
approved by SEC.
i buys high-grade <securities, for
sell. the system to the Authority
security 7anA income or»to1 the;
SEClmsapprovedp
by iwithout such; a Certificate;,..7 >
, more /speculative
type of in- :
Pennroad; Corp.of
I vestor. who buys sound values at
S9^4fi0 shares ! The- PUblic;vUtility Co"mmissidn
Wheeling & Lake Erie: R\vy. com¬ iisTan .august :and*Jearned.bodyof
|\a'discount.*'^;7r*
'■ ■>
mon for $4,365,900, thus; clearing
'men.. They; demand .eyery: detail
I Another: "Peace scares, includ¬
the way for Pittsburgh & West
'and. rightly so, and; probe it;tQ .the
ing the; bugaboos of • reconversion
Virginia Rwy.'s program of* debt utmost; They are long; on: caution
problems?1. cut * backs,: r caneellar reduction.'';..''. '',
77'7>■7;
;ah<L short .-onspeed; v When* ;an
iions and- widespread unemploylAuthority. isi eontemplated;, it is
rnent to follow will, from time to
On Julv :30,;: BetMehein' Steiel
jalways^^ with^^ thevthought in mind:
jtime, touch" off waves ©f selling.
Cbrp, virill retire 7 its entire out¬
If these 'reactions serve to dis¬
jthat the- Certificate- will, not be
standing Serids F Bfe, at 105. 7 iforthtximmgl formatI east^sfx
courage or eliminate the shoe7
(Continued on page 77) 74
imopths;. and^probabjy :lpnger;;;v; string speculator, so ; much The
him,

sot/pHT

of

to

sued

forecasting some dire and as yet
! unforeseen event. The technical

Aldred Inv. Tr.

*

tern of the "ability, to pay."

a

;

••

i

the

that- if

chase

haven't

Neither do.

changed overnight.

;

4's

s

——

perts

physical assets
or
the stock,

•

,

———

;

property is
privately held,
and acquired
by the Au¬
thority, either
by the pur¬

bottle of salt tablets to relieve the ravages of ex¬
.

<£——;——

■

passed in 1943,

reaction in the securities markets sent thou¬
dealers, asking. "Is

Typical comments were:

was

first

also

investors to their brokers and

perspiration.

cessive

this

and

Teletypes PH 296 & PH 297

bull market over? Hadn't I better sell everything?"
most part, Pennsylvania dealers prescribed confidence

and faith and

50% Paid

WHitefa»JJb4-23<#

Member

"

Federal Deposit Insurance Corp."

Practically a new law was written and enacted by the last session
Pennsylvania Legislature regulating the creation of Authorities
and the issuance of Authority Bonds.
{
7 '
There is no doubt that a stricter law was much needed. Both the
recipient of the utility'service and. the holder of the bonds are now
much better protected.* The most important of the new
requirements,

Is the

For

Inland Gas

New York. FIimi*

;

*

of the

Dealers Unperturbed by Market f<Shake Out, "

7

Last week's sharp

:

moderate.

very

request

Pennsylvania Brevities

■

sands of excited

213 So.

security

PHILADELPHIA

is

Teletype PH 257

Little Rock Hot

of

Lives and Granting Annuities

Member

...

1421 Chestnut Street, Philadelphia 2

1st 61/&S

on

Federal Reserve System

,

.

N. Y.-Phila, Private Wires REctor 2-6528 & 2-6529

H.N.NASH&CO.
Phone

For Insurances

*

-

Incorporated

Philadelphia Transportation Co.

Locust 1477

of the best and the cost is

experi¬

THE PENNSYLVANIA COMPANY
7

STROUD & COMPANY
Bell System

Phila.

an

clearance

15th and Chestnut Streets

publication

123 SO. BROAD ST., PHILADELPHIA 9,

3-6s 2039, P.fd. &. Common

are

'7• >,;

Dealers

;

Bank & -Insurance

.

Our facilities

prepared

will be pleased

to furnish this

between

System

Security

Inquiries Invited

Philadelphia and Philadelphia School
District

Los Anffeles

Pittsburgh, Pa,

facilities

and

department s for handling : the
transactions.
,':

complete appraisal of all outstanding City
of

Street, Philadelphia 2

1529 Wali»wt

Brokers

;

PHILADELPHIA BONDS

ori Request

New York

to

;

Members New York, Philadelphia and
Los Angeles Stock Exchanges

j

offer

enced

United Printers & Publishers
Memos

clearance

•

We

\

Company

Thursday, July.5,1945-

'-

7

'

•.< M'y

i

000, of its
Gas

&

holdings

Heating

in Nashville

Co;

has

*

been 1

"

Of

the

net proceeds

to be re¬

ceived from the sale of this stock,

$395,325 will be used to redeem
the presently outstanding 7% cu¬
mulative preferred 'stock, and thb
balance

will

be

used.: to

acquire!

exempted from, competitive bid- " additional facilities' and for work'- j.
ding requirements;^ Tennessee
ing' capital.**" -•

same

on

the creation of am Au-

•

thority, whether large or small.
It is easy to visualize a - case
1 where

with complicated: details,

t.ho cost

of setting *up a

small
Authority might be considera¬
bly greater than setting- up alarge one.
The only answer
under present conditions; as we .
see it, is for the various ex- ;

view)--United Nations Informa¬
Office, 610 Fifth Avenue,

tion

•

N^w. York 20, :N:; Y.—papei;—500.

Toledo Bond Giub to
Hold
J"

GslfOiiting

.TOLEDbr OHIO

*

The Bond

Club
of
Toledo
will
hold 7 its:
Eleventh Annual Golf; Outing .,atj
.

the Inverness Country V Club "on
Friday .July 20; .4945?-.to-'which
guests are being invited.:*
)
.

.

77

MISSOURI PUBLIC SERVICE

©NEW YORK CITY

TALON, INCORPORATED COMMON

Common

.

DIRECT' PRIVATE WIRE

TRANSPORTATION 3-6s 2039

PHILADELPHIA

PHILADELPHIA TRANSPORTATION PREFERRED STOCK

FEDERAL WATER & OAS COMMON

LUKENS STEEL COMPANY COMMON

A Sound
89c.

Earned

share

DELAWARE POWER &

ending April 30,

for the four "months

PHILADELPHIA

.

N. Y. C. COrtlandt 7-1202

Into
:

:

Speculative Investments and - Promote Inflation;

has

caster

of

The July

restricting Government bond

to

called

.

■

;
■

*

*

*

:

special

a

meeting

'

*

'

*

i
*

;

*

:
*

ited, as before, to
of
savings
deposits

10

cent
at the

per

or

*

maximum

;

.

$500,000.

restrictions

these

''With

upon

also

rates

lower

to

of

to

retire

week

present

§11,000,000

The

Elliott

stockholders

Co.: of
have

the

reclassification of certain authorr
unissued

ized

and

new

tration

statement

has been

a

would
the

cutting still further
which -insurance

mean

rates

serves

upon

to

companies, savings banks,/ chari¬
table and educational

institutions,

/

already traded in the

..

At

market.

the same .time,. the supply ;• of
bonds coming, on the market from

,
v

'

.

secondary
sources,
particularly
institutional investors, has been

cut down by the Treasury request
not to sell existing issues in connection with war loan subscrip-

,

<

tions except for

;

"normal portfolio

j: adjustments," and by the limiting

divert

tend

money

into more speculative,

arid promote

ployment
There is

no

em¬

As

to the

•

abnormally low level of interest

bonds

rates, the circular quotes the au¬

subscriptions to the new \xk%
to individuals (except for
the
small
amounts
permitted

1

against savings deposits in com*

mercial banks).

thority of Chairman Eccles, of the
Federal Reserve System, and of
the presidents of the Federal Re¬
Banks.

serve

"The

f

i

banks,

in

consequence,

anticipating ' a
scarcity in. the
floating supply of the intermedi-

needed to sustain

■). ate maturities
build

up

existing
market.

"Chairman Eccles, of the Board

of

Governors

serve

of

the

Federal

Re¬

System,'' the circular states,

"stressed the deleterious effects of

While

have

Treasury

'Excessively low interest rates
ultimately to induce in¬
flated
prices of governments,
municipals,
and
other
high
grade securities.
The effects

maturity have been
neglected, and prices
(except for bills which are pegged
by the Federal Reserve Banks)
have tended at times to sag, inities of short

i

f

*
>

1
.

tend

termediate and longer

are

maturities
l

j

\

,

as

it may

becomeu necessary ,.to
curtail fprther credit expansion,

I;
Analyzing the: effects of: thb
-Treasury's policy on non-banking




as

ourpeople, small
large savers.

Moreover,
this
creates > a
future problem for monetary
as

KLT

lines

authorities because at such time

......

c:

credit

and are felt by in¬
companies,
savings
banks, educational institutions,
and other fiduciaries represent¬
ing the accumulations of many
well

the'efitire .structure of in-

terest rates.":

in

millions* of

.

i

reflected

surance

banks reaching all the way out to
the 2y2s of 1967-72 and forcing

that issue to a 2.19% basis.
These
j declines along the greater part of
the yield curve in the bank eligi ible
list raise a question as to
t their ultimate effect, if continued,

•

generally,

eligible for bank investment have
been in heavy demand, with some

j upon

charitable
insurance

well-being

and

educa¬

for the hold¬

national

-

policies

economy

a

*'

to

used

which
$9,799-

underwriters

cipal
Co.

City of

Drexel
Ripley &

Philadelphia

■:

3l/s% Bonds
has

SEC

The

granted John H.

Ware, 3d, of Oxford, Pa., permis¬
sion to purchase 300 shares Ham¬

both

mon,

Bethlehem Gas Co. has agreed to
sell

its interests

Pen

possible to lessen

in Hamburg

and

as

•-

A

1

a

.

safeguard

-S-U

against

which

Inc.,

approximately

owns

85% of Jacobs stock, has been ap¬

stockholders. Jacobs
will be exchanged for

by

proved
common

one

of Republic.

on:

the

Jacobs

of

shares

three

of

basis

for

preferred

$25

Republic

%

-

:

t.x 6

J::

PHILADELPHIA

Benjamin Franklin Hotel 5s 1960
Drake of Phila. 6s 1959

i

Pittsburgh Hotels 5s 196J
Phila.
Phila.

Transportation Pfd.

r

Transportation 3-6$ 2039

Philadelphia Western 5s 1960
Glass Co.

split

of

hkve called

$10

par

In

a

special

meeting/for Aiigij
proposed
present $25 par

upon

each

a

its

common.

Samuel K. Phillips lr Co J
Members

Philadelphia Stock Exchange

Packard BIdg., Philadelphia 2

into four shares of new

common

Teletype.,
;

N. Y. Phone

PH 375

REctor 2-0037

first

public

/

financing,

Co., Allentown,
will sell $300,000 1st 4V2s, 1955,
to
increase: its working capital.

Blossom Products

issue

advance, thus -attracting more
funds into the nearer ma¬

will

offered

by

Notes

Personnel

;

president
turities, or (b) increasing the sup¬ Philadelphia Savings Fund So¬
ply of intermediate issues and ciety, has been elected a director
of Pennsylvania R.R. to succeed
making them available to banks—
Thomas Newhall, "resigned.
preferably by direct offerings af¬

issues.
While a
desire to limit bank earnings has
been indicated to be responsible
outstanding

W.

Isaac

at least for. the present
policy of restricting the
supply of securities available to
banks to the short, low-yielding
maturities, it may be questioned
part

dent

Roberts,

"Undoubtedly a helpful factor in
preventing a further decline in
long-term interest rates generally
would
be for
the Treasury to
make clearer its intention to

St.,Philadelphia 9

PhiladetphiaTelephoneK.ingsleyjj311
New York Telephone Hanover 2-2280

litzelle who becomes chairman of
the board.

<

Pennsylvania

Fidelity Philadelphia

and New

---

Jersey •

Municipal Bonds

Reports Promotions
PHILADELPHIA, PA.

structure of interest rates outlined
•

Philadelphia Stock Exchange 123 S.Broad

Harrison Hob-

Corp., succeeding

whether this constitutes wise pol¬

above.

Members
New York Stock Exchange

Castings

Steel

General

of

Rakestraw, Betz & Go.

v

official

icy, especially in view of the col¬
lateral effects upon the - general

Complete Investment

be- underwritten

Warren W. York

Brokerage Services

them

bank

ity-^Phiiadelphia Trust Co. reports
the promotions of
to

F. Travis Coxe

Vice-President and

Kenneth
President

con¬

;

bonds in
-

Moncure Biddle & Co.

^4Directors, of Pittsburgh Plate

1

& Co.

infla- subsequent war loans."

Interest

Merger of Jacobs Aircraft Enpine Co. with Republic Industries

long-term investment rate,
injurious effects as
de¬
scribed, by either (a) unpegging

of "2 V2%

&

1.20%

respectively.

with

tinuer issuance

115.584
To Net

Argyl for $9,000 and $22,500,

and

in

Price:

Allentown-

$50.

par

,

January 1, 1968/54

burg Gas & Fuel Co. common and
600 shares Pen Argyl Gas Cor com¬

The

to

$100,000

,

are

Co. and Harriman,

&

danger of. further decline in

the short rates and allowing

PG 496

and

as

-

"It should be

Teletype

general mortgage 6s. Prin¬

the

of

secur-

relatively
'

from
retire

proceeds

be

,

'

<

requirerridrits' of

Stock Exchange

Bldg.—-Pittsburgh 19, Pa.

Court 2380

ter the, drives—which would sat¬
sought to
letting interest, rates get too low isfy their needs without bidding
their portfolios out of
Charles
P.
Whitehead,
vide
when he said in a, speech in the
up prices and forcing down yields
issue's available in the
president, has been elected presi¬
late Fall of 1940:

earning .'power,-

,

-

of

.

whole.',

1

an

(below

savings bank accounts, arid for
the

the

dangers'involved

will

money

for the future

our

ers
.

so

the decline in interest rates."

well

are

tional institutions,

much concern in Wash¬
ington, are in part a reflection of

causing

of

:

of

inflation.

prices and in
which
have
been

of them

easy

lems

stock

estate,

re¬

Members Pittsburgh

to pur¬
number
of

same

policy, and are ;/stbckhplders'
29,
to vote
raising serious, long-term prob¬

doubt that the recent

in

advances

real

to

excess

C. S. McKEE & COMPANY

Telephone

interest rates have fallen

the reasonable
an

investment

would

the

of

unprecedentedly low levels.

Some

Subscription to, new -issues,- banks trust
and pension funds, and other
seeking an outlet for their funds
long-term investors depend.
It
have been forced to turn to issues-

,

'Because

the

shares,

filed.

155

-

reported last
of $18,600,*?

-

excess

warrants

with

gether
chase

Directors of Warner Co.,

This

was

596

of 40,000 shares
5%
preferred,, for which a regis¬

cum.

Co.
be in

to

RETAIL DISTRIBUTION

Pittsburgh

of

Philadelphia & Reading Coal
Iron Co. has registered 412,shares of new common, to¬

; &

" issue

into

stock

equivalent in the hands

Trustees

Union Tr.

Jeannette

approved

'

ing slightly in excess of the same
period in 1944,
'

capital.

new

WESTERN PENNSYLVANIA

Gross revenues are continu¬

000.

preferred and 108,528 shares to
raise

or

the

Railways

issued presently,"

shares

52,994

' V-

levels.

_

® PITTSBURGH

-

TRADING MARKETS

Cash

preferred.

new

76)

public shortly.

Phila¬
Bhould a
March issue of this Letter and spreads can persist.
continuing scarcity of intermedi¬ delphia, ,met in special session
again more briefly a month ago,
ate issues force a further decline last Monday" to iron out the few
it has
received added stimulus
in yields in this maturity range, remaining wrinkles in the com¬
since the
announcement of the
there will be strong temptation pany's
plan
of reclassification.
terms and conditions of the 7th
will
for non-banking investors ordin¬ Details of the plan, which
War
Loan.
These
greatly
refavoring these maturities provide for the retirement of the
stricted the volume of intermedi¬ arily
to stretch out their investments present first and second preferred
ate and long-term securities availinto the long-term bank ineligible issues through an exchange of seable to banks; either on subscription or by purchase in the mar¬ 2y2s and high grade corporates
still yielding relatively .high rates.
tionary developments, this step
ket.
Not only were the commer¬
This might be accompanied
cannot be taken without caus¬
by
cial banks again—as in the 6th
some spilling over of bank funds
ing a decline in the price of
War Loan—excluded from sub¬
into
high
grade
corporates
if
outstanding securities.'
scribing any portion of their comyields on the long-term bank
mercial deposits, but even their
"Only little more than a month
eligibles go lower."
after
the
above
statement
by
already limited right to participate
"Such
moves,"
continues . the Chairman Eccles. a snecM renort
in proportion to savings deposits
analysis, "to the extent that they to the Congress by the Board of
was further restricted by exclud¬
take place, would exert pressure
Governors of the Federal Reserve
ing the marketable 2%s and 2V2S,
on yields of high grade corporates
thus leaving available to banks
System, the presidents of the Fed¬
and long-term government -issues
eral Reserve Banks, and the Fed¬
only F and G savings bonds, 7/s %
not eligible for commercial banks,
eral Advisory Council contained
certificates,
and
1V2% bonds—
and might eventually drive these
the following declaration:
and even these in amounts lim¬

*

Meadville, Pa.

Washington, Pa.

5,

Sept.

authorization of

the

011

shares will be

"TJie market for outstanding $>■
investment policies, the monthly
government securities has conletter states that "while thus far
tinued to reflect the flow of cornthe yields of long-term govern¬
mercial bank funds into the longments ineligible for bank invest1er-term " higher-yielding
issues.
ment (as exemplified in the 2V2s
While this tendency stems basic¬
of 1965-70) and of triple A cor^
ally from a growing confidence
among
investors generally that porates have failed to show de^clines comparable with those of
they can't be hurt reaching out
bank eligibles, it remains to be
into the longer maturities, as rer
corded
at
some
length in the seen how long these widening

*

Exchange

curities, is expected to be made

It will be proposed that 161,522

marketable issues, the letter
•

vote

250,000 shares of

purchases of commercial banks to

short-term and the long-term
•'-comments:'■
the very

from page

(Continued

;

stockholders'

*

Stock

Branch Offices:

Street, Philadelphia

Armstrong Cork. Co. of Lan¬

Monthly Bank Letter of the National City Bank of New
York discusses; among other current topics, the nature and the effects
of the decline in interest rates,
^eferring to the Treasury's policy
:

Pittsburgh

Pennsylvania Brevities

Holds It Might Tend to Divert Money

National City Bank

Reed, Lear & Co.

Private telephone wires to New York and Baltimore

Sees Dangers in Low Interest Rates
-

PREFERENCE

Investment Securities
1518 Locust

PH 30
to

$1.00

Rassbo, Keen, Close & Herner, Inc.

PHILADELPHIA 3

Pennypacker 8200
Private Phone

ELECTRIC

M ember$

BOENNING &. CO.
1606 WALNUT ST.,

ELECTRIC COMMON

financed.

management—good growth factor—conservatively
Book value 19 '/c\ over current market price.

Excellent

LIGHT COMPANY

PHILADELPHIA

1945.

increase of 47% over the same period last year.

An

f

per

Utility Equity.

dent*'

c.

G.

LeFevre

and.

.

Secretary,
to

Barnes
.

Building

PHILADELPHIA 9

Vice-

and
to Vice-Presi¬

Treasurer,

Dolphin & Co.
Fidelity Philadelphia Trust

Telephones:

*

i

York—HAnover 2-9369

Belt System

Teletype>--PH

;

|.

Philadelphia----Pennypacker 4644
New

:
f

\

j

-THE COMMERCIAL & FINANCIAL CHRONICLE

78

Metropolitan

Seaboard Railway Company

Seaboard Railway Co.

West Side

Thursday, July 5,1945

When Issued Securities
First

Elevated
1st 4s,
/

.

■

New

Stock Clearing Contracts

-'

;f„

,

•

Bell Teletype—NY 1-310

,

5s, 1927"

Union Pacific

J

reaction* all railroad securities shared in the
general weakness, even those entitled to the highest grade invest¬
ment rating.
Union Pacific was a case in point, reacting from 136 to
128 at this writing, at which level the stock yields 4.65% on the
basis of the $6 dividend currently being paid.
:»
U. P. is a rare combination of railroad, investment trust and oil
company. As a railroad property 6
—fr
<
it
is very efficient,in the ten; from the war as have all of thri
years
1931-40 carrying through Class I carriers, gross revenues
to -net- operating income before mounting from an average of $150
Federal taxes 15.6 % of gross rev¬ million during the depression to
enues, as compared with a Class $506 million in 1944 and net earn*
I average of 14.7%. As an invest¬ ings available for, charges from
ment trust U. P. owns over $55 an average of $35 million to $76.2
million of miscellaneous railroad million in 1942 and $63 million
-securities, 'including large blocks average during the three; war
^
of Illinois Central common and years 1942-44.
last

week's

.

MEMBERS

Exchange and other
leading Security and Commodity Excha.
Stock

Broadway, New York 5, N* Y«.
LaSalle St., Chicago 4, 111.

J

V

Maine Central

.

,

.

,

4%s, '60

Maine Central Com.

St., Boston 9, Mass.'

n,

Y.

J

Teletype BS 259

:

:

Burlington Mills Preferred
Offered by Syndicate
Kidder, Peabody & Co. and as¬
sociates on July 3 offered to the
public 150,000 shares of 4% cumu¬
lative

preferred stock, ($100 par)
Burlington Mills Corp.
The
stock was priced at $104 per share
plus accrued dividends. Proceeds
of

!

of the
to

sale of the

new

issue

are

be devoted

principally to the
prepayment of a 3% promissory
note in the amount of $8,000,000
due
Nov.
1,
1959,
callable at
102.79% and accrued interest, and
to the redemption of 58,602 share?
of 5% cumulative preferred stock
redeemable at $108.50 per share
and accrued dividends.
Burling¬
ton's common stock outstanding^
totalling 1,723,376 shares, will be
its only other capital stock wheii
these

refunding

operations

are

effected.

needs,

tion

The important com¬

this

in

yarns

and in fabrics
combinations

or

lion

of

$950,000, also in .1944.

-

r

t

to

F. Eberstadt & Co,

Offers Elliott Co. Preferred

marked

a

F. Eberstadt & Co. on July "3
publicly offered 40,000 shares of

cumulative
preferred stock
($50 par) of Elliott Co. at $51 per
share and accrued dividends; Net
5%

financing, es¬
$1,924,000 will be used
to redeem, at $34 per share and
in fixed,_ charges.''■
y.
, ■.7yv".
accrued dividends,; any shares of
: Many ; students
of railroad fir 5!'2 % cumulative convertible pre¬
proceeds i of. this

.

timated at

tion of 41.84% in debt and 46.60%

nance believe that gross revenues

ferred stock

for; the western roads will greatly
exceed the 1941 gross, particularly

converted

for those carriers operating in the
far .west which; has been greatly

preferred; stock originally issued

Over >70%

of the

into

have- already been converted. Re¬

when

these

been

settled.

accounts

Still

will

further,

making i allowance for other in¬ ingly, : the company expects that
from its investments; we substantially ■ all of the $1,924,000
can envisage, assuming full retire¬ will be available to it as additional
ment of 1846 and 194? maturities working capital.
'•
out of treasury- resources, cover¬
Until the date fixed for redemp¬
age of new fixed charges of over
tion, the outstanding 5V2 % pre¬
7 times, earnings of over $45 on
ferred will be convertible, into
the
995,431 shares of $4 non- common stock at the rate of 2.77
cumulative preferred arid approx¬
shares of common for each share
imately $19 per share on 2,222,910 of preferred/ Those shares of
come ;

.

shares

of

contrast

common.

with

actual

This

would

common now

earnings of
1940 (unad¬

sion which

$6,96 per share in
justed to debt retirement as out¬
lined herein), $11.19 per share in
1941, $26.14 in 1942. $18.58 in 1943

Union Pacific

erty in, the Wilmington Field lo¬
cated in the Los Angeles harbor

gency facilities being depreciated
on a five year emergency basis, at

earnings from this source
have risen substantially. Whereas

$36.5 million or $16.42 per share, A
substantial portion of this amount
will he translated into net current

ceed those of

not issued for that

the first five months of 1945 are

assets,

reserved for conver¬

are

area,.

earnings from 1938-41 inclusive,
averaged approximately $4 mil¬
lion during the three' succeeding
years, the average was slightly
over
$8 million with $7,681,000
being derived in 1944.
Excluding the Pocohontas car*
riers, Union Pacific has a record
of earnings and dividend stability
almost second to none among the
larger carriers, hauling a diversi¬
fied

list

of

commodities.

In

faci

dividends

have been paid regu¬
larly throughout the entire cen¬
per

with cotton yarns.

In each of .the

made in this country,
excluding tire cord yarns. Bur¬
lington's 46 plants are located in
North

Carolinar-Virginia,
and
Tennessee, within easy reach of
the large rayon producing cen-i
ters.

its

carried

•

at the end of

unamortized ,?

1944

emer¬

(in the form of credits)
the
Japanese
war ,has
its final phase.
All in

when

reached

all, therefore, net current assets,
adjusted to the items referred to,
probably reach about $200

would

million.

'

;

■

Union Pacific is one of the few
which has not retired

debt during the war period,
fact in the past 8 years met
debt has increased $27.2 million.
any,

in

brought, about
by substantial purchases, of equip¬
ment financed through equipment
trust certificates.
Union Pacific
concentrated on strengthening its
increase

$16.68 in

reaching
Share.

•>

working, capital

.

y;

rather

than

these

in

part,

whether

they will choose to

tire

of

of

all

these

ways

cial

on

maturities

assume

will be

ings,

Lt Col. Tabler With

as

entitled, to

possibly
$18 per

ton,

high

a

is

now

associated

Philadelnhia

office,

strength

even:

during

road

the

an

credit

would

we

the further rehabilitation of rail- to the old rate of $10

ATTRACTIVE SITUATION

^BOSTON

& MAINE RAILROAD

$7 Prior Preference Stock
Accumulations: $94.50

Approx. Price: 86
'

Details

on

request

re¬
'

■/:

CUARANTEED RAILROAD STOCKS-BONDS
;

"

■

—cr

:

*

—•—

1

INCORPORATED

tax

25 Broad Street

New York 4, N. Y.

keyes fibre
"

on

Hasten V-J Day!

expreso aereo
Circular

Class A and Commona

.

BUY WAR BONDS

request

seaboard all florida

Mclaughlin, baird & reuss

6's '35

Adams & Peck
63 Wall Street, New
BOwling Green 9-8120
Boston

York 5

Tele. NY 1-724

Philadelphia




Hartford

.,

1. h. rothchild &

co.

Member of National Association

of

Securities

Dealers, Inc.

specialists in rails
52 wall street

KAnover 2-9072

n. y. e.

5

tele. OTT1-1293

the

arid

;

Members New York Stock Exchange

ONE WALL STREET
TEL. HANOVER

2-1355

NEW YORK 5
t

.

anticipate

increase in dividends

adjustments, would amount to $6.5

■

with

15th

Locust Streets.

depths of the depression, and with

retired, net interest sav¬

for

1

PHILADELPHIA, PA.—Lt. Col.
F.
Tabler, formerly with
Brooke, Stokes & Co. in Washing¬

irive?tment( rating, has al¬

of this article
maturities

allowance

:

Otis

that these

without

y

enjoyed impregnable finan¬

or

out

■.*,

Brooke, Stokes in Phila.

V,

been

public at

:\7V vy

treasury funds, is conjectural.

If for the purposes
we

year ago,

much

:'!'■/

Earnings for

As indicated, Union Pacific has

always

Whether Union Pacific will choose

refund

a

as

later date."

.was

retiring debt, because in 1946 and
1947 $151,191,500 of bonds mature.
to

1944.

will be sold to the under¬

writer for resale to the
a

equal to $6.30. (again unadjusted)
and for the full year should ex¬

grade

-

railroads

This

and

purpose

Railway
1st 5s, 1996

not
stock;

company

common

of the shares of 5Vz%

4

1936 when oil was dis¬
covered on Union Pacific's prop¬
Since

rayon yarns

Adirondack

of

have

past, 10 years it has required ap¬
proximately ' 10%
of the
total

St. Lawrence &

by corresponding
$20.4 million in unad¬
justed credits on the liability Side
of- the; balance sheet, which will
contribute an additional $10 mil¬
items

$2,520,000 in dividends in 1944
and Union Pacific Coal Company
which it derived dividends

•

cotton

due from other railroads of $31.9

from

share
Burlington and its subsidiaries to $11.50 per share to
1918,; $10
are the largest producersjof fab¬
per share from 1918 to 1931, in¬
rics made from rayon and other
clusive, and at the rate of $6 per
man-made fibers * in the country;
share from July 1932 to the pres¬
In addition, it is engaged to a
ent time.
limited extent in the production
Union
Pacific
has
benefited
of

effect

change in the funded - debt of the
company,
total
debt following
these retirements then being $217
million as against $373.2 milliori
currently, and total; fixed charges
$7.57 million as against $14.11 cur¬
rently. This represents a reduc¬

,

include million, offset

regard

tury, ranging from $3.50

made from cotton

would

,

These-holdings are exT ever, in that excess profits dak
of
$18.8
million ; are
elusive of important; transporta¬ refunds
tion companies wholly owned or carried as a deferred asset and
controlled and operated in con¬ other deferred assets inc 1 ude
junction with its own transporta¬ freight and passenger settlements

Pacific Fruit Express, 50% owned,
frcm Which Union Pacific derived

.

annually, equivalent
share on the common.

per

This

industrialized during the war pe¬ cent market; prices of the f>V%fo
strength* riod: It .is not too optimistic to
preferred stock and common stock
ened during the war, net current
forecast gross; revenues of $250 of the company . would make it ad¬
assets rising from $$7.6 million at million or
$100 million > greater vantageous for holders; of the re-*
the end of 1939 to $161.9 milliori than
those of the 1930s and as¬ maining shares \ to convert their
1963, Baltimore & Ohio. Refunding as of March; 31; 1943. This /latter
suming -.operating \ ratios \ similar 5 Yz% preferred; stock; rather than
5s; New York Central Refunding figure is ah understatement,; how- to those of 1938-40
inclusive, and allow it to be redeemed. Accord-'

panies

Telephone HAnover 2-7914

$3

Financial position has

4Y2S, etc.

148 State

million

•

preferred,
New. York / Central,
Pennsylvania and. largee blocks of.
•miscellaneous
bonds
including
Illinois Central Joint Division i5s*

Maine Central Pfd.

Tel, CAP. 0423

■

Telephone REctor 2-7340

Raihoad Securities
In

So.

,;. ;,

120 BROADWAY, NEW YORK 5, N. Y.

Railways Co.

231

losses in the above

Members New York Stock Exchange

Chicago

120

assume

SUTRO BROS. & CO-

New York 6

61 Broadway

York

and

"when;issued" contracts;:V'; /.:.

<:;

York Stock Exchange '

Member* New

New

Railway Co.

Only '

pflugfelder, bahpton & rust
Telephone—DIgby 4-4933

Louisville

V

We will discount profits

Unspecified

Cons. "A"

Chicago, Indianapolis &

Pacific Railway, Co.
Stock Exchange

York

Western R. R. Co.

Chicago, Rock Island

No Par Common V, T.' C,

5% Preferred

Denver & Rio Grande

4%«

v ■■

,

<'

Income Mortgage

Mortgage 4s

1938

Chicago, Milwaukee,
St. Paul & Pacific R. R.

TELETYPE NY

1-2155

possibly

per

share.

'

J

.

r

THE
■

.'.

■

■

|T®mflrrowfsiarlels.,
Waller Whyf® Says—:
70)
possibility of a whipSo all the advice to buy
limited to certain and

(Continued from page

\

the

saw

saw.

/

was

specific prices (for the stocks
given) and stress was made on
'•v the stops.
,

./

V':-:

\

:"r

».

thing

bought at 30 was stopped at
3414, with. a profit of 4!4

take
loss.
/ ;
points, leaving .you
advising stops I try to
black figure of about
norm,
Sometimes they

to do is to

•

■

-

>

•,>' •'

', •

•, -

'V

!. V.

hit

a

-

what¬
have
an effect on the trend seldom
becomes news in the accepted
sense until after the fact.

ever

'

'

*

■

■

*

*

'

holder,

nothing against

But this long-pull
should be maintained
only when the action of the

specific stocks, in relation to
the rest of the market, con¬
tinues favorable.
It is here
that we find the basic differ¬
ence
between the outright

the margin

buyer and

believes

The former

safe in the assurance

him

trader.

himself
that out-

ownership eliminates
from the vicissitudes of

market trends.

and God's in his

the world

heaven,"

He is a per¬

"All's right with

petual bull.
to

paraphrase the

poet, is his philosophy, It's a
comfortable philosophy, but

PREPARES FOR
,

i(.

,

■.

.

BUSINESS

$323,640,000

2.16% FOR

DIVIDENDS $13,520,000,

SUPPLIERS $214,850,000

;i.34% FOR

DEPRECIATION $8,300,000:

5117% FOR WAGES
3432% TO

8.19 %i FOR

TAXES'$55,650,000

j.88%

RECONVERSION $5,500,

FOR

$4/450,000;

£71% LEFT IN BUSINESS

business—
of
large aircraft assemblies, heavy bomber turrets and heavy and
Briggs has just completed $626,000,000 worth of war
through the early part of; 1945—-consisting principally

1941-

from 23,000 to 36,565
the same period, and it added almost a million square feet of
floor space to its manufacturing operations. Still on its books and
in production are many more war orders.
1

medium tank

its fortunes

fortunes

by a

and mis¬

belief; in any

hulls. Its employment rose

in

Requirements
Space for Peacetime Work

of Cincinnati, Ohio, was

.pany

purchased—one of the

will be

for

ware

" «4 1 :1

practically all purposes.

1944
Profits

;

A competent

margin trader

burdened by any

After
$5,307,161.10

Free

Briggs* profits after taxes in 1944 and after provision for rene¬
gotiation of war contracts, costs of plant reconversion, and other
costs arising from the war, were $5,30^,161.10, as compared with
$5,239,350.74 in 1943.

changes in war requirements, facilities
devoted to war work have been decreased about 20%, thus per¬
mitting the Company to continue to be able to meet its war con¬
tracts, and at the same time to begin to prepare for peacetime
body manufacturing. \ ■ 4.;: "
,• ••— •
\
Now, however, due to

New

In

Foundry Established

Cleveland

The reduction in

work also permits Briggs to

make post¬

plans in other fields. For some time the Company has been
experimenting with plaster molds. Beginning with April of last
year, it put into operation on war work a large new foundry in
Cleveland, Ohio, Using plaster molds exclusively and licensed
known as the "Capaco Castings Process." This
be available for making intricate and fine castings for

under what is
soon

of

compared with current assets of
liabilities of $73,985,660.70 in 1943.
The

Plans Laid for

•

•

large scale.

r:

Market

plumbing ware market
On September 30,1944 the John Douglas Cow-

Briggs is also planning to

on a

$99,657,442.40 and current

Company paid a $2.00 dividend per
in 1942 and 1943.

share of stock in 1944,1

same as

To

Spend $10,000,000

'

On Reconversion

expenditure of approximately

re-equipping and new machinery^
However, the Company believes that its principal job must con¬
tinue to be production for war until final victory has been achieved
in the Pacific. Until that time-, the needs of the Armed Forces will
always'come first.

$10,000,000 for reconversion,

Postwar

Plumbing Ware

the

Briggs' future plans call for the

peacetime manufacturing.

Company and its

December 31, 1944 showed current as¬
$82,647,409.64 and current liabilities of $54,303,994.08,

as

war

•will

financial position of the

domestic subsidiaries on
sets

"'•.■■4;:

./
war

The consolidated

"

re-enter the

of secur¬
ity, gets in when he thinks
the time is propitious and gets
out

when certain

appear,
losses.
Its

take

indications

Sometimes he takes
his profcare of them.
In-

But usually




BRIGGS

MANUFACTURING

COMPANY- DETROIT 14,

MICHIGAN

"owned

outright" false sense

;■

Taxes Were

cliche.

not

country's

independent manufacturers of plumbing ware and plumb¬
ing fixtures. In securing this Company, Briggs has added enough
plumbing ware facilities to what it already has so that it
able, in the postwar market, to oifer a complete line of plumbing
oldest

Changes in War

unrealistic. The
stock market is a segment of
our civilization and you can't
escape

MANUFACTURING

'626,000,000 IN WAR

thoroughly

\

;

hold¬

time.

right

presented cm

author only.]

*

*

holding
-

They are

Chronicle.
those of the

the holder - who
securities outright.

I have

a

using only paper fig¬
purposely avoided

recommended,

ing stocks for long periods.
In fact this column has recom¬
mended retention for months
at

I

or

his
.*

••

'

account.

into

owns

am

-

through in the conviction that
everything will work out ali'
right.
It is this latter belief
which furnishes most; of, the
ammunition for the long pull

■„

ures.

PEACETIME

(even this loss may eventually
be
smaller
than
holding

-

loss I

White Motors was

i

is
The
major difficulty with stops is
that once a stock breaks the
stop point it automatically be¬
comes a market order.
In a
disorganized market this may
make the loss greater than
originally anticipated.
Yet

;

knowing

of sudden news

this effect

•taken

in

stops, wherever

( In advising

purchases are

<

at- 28 and is now.

about 29."

News, of

■

v

paper.

„

character, that may

'/'I'r,:

ed

until the damage has

been done.

-

on

stopped
results would be a 7

If all four stocks are

29 •14, v stop

issue

appears

*

*

*

1 point.

„

practically every
ing another 134 point- loss.
recommended became Total loss was 3 Vt points. "; To
available. \ In itself this easy
offset that Jones & Laughlin
buying was suspicious. Any?
thing that comes easy, partic¬
ularly in the market, has some
kind of catch to it.
Unfor¬
tunately there is nothing ob¬
vious about easy buying, or
selling.
The obvious seldom
Last week

v

with a

If you're interest¬
what they
You also have a paper profit
were I suggest you look at the
out the
bring losses but the profits in
Big Steel of about 10
back copies of the column for
make up for them.: For ex¬
point loss against which you'd
points.
You bought it at 56
the past six months or so.
ample you had American For¬ with a stop at 65 (currently have about TO points profit.
More next Thursday.
eign Power 2d Pfd.' at 2734 about 68),: Against, that. you Sp you'd still be ahead and
with a stop at 26. Stock broke
have money with which to try
—Walter Whyta
have: three stocks in the red.
and your loss was 134 points;
A. M. Byers was bought at again when conditions permit.
[The views expressed in thfo
:'
#
*
■
*
Western
Union bought at
article do not necessarily at any
19, stop tis 16.
It's now about
4834 was stopped at ,47 mak¬
In computing the profit and
time coincide with those of the,
18.
Flintkote came in at:
In

•

.

*

::

•

I

5

acquired at 31, with a stop at mentioning profits accepted
in the past few months, prof¬
2814 and currently is about
its which were actual and not
30.

~

pidentally the hardest

n

CHRONICLE

Number - 4400

.Volume 162
ii_

COMMERCIAL & FINANCIAL

IN WARTIME:
BODIES FOR

BOMBERS, FIGHTERS,

IN

PEACETIME:

BODIES

FOR

PASSENGER CARS

BOMBER

AND

AMBULANCES, AND

TURRETS.

PLUMBING

FERROUS

TANKS

TRUCKS,

CASTINGS.

AND?

WARE, AND NOty.

•i

;

THE COMMERCIAL & FINANCIAL CHRONICLE

BANK

PRIMARY MARKETS IN

OF

Thursday, July 5, 1945

[

AMERICA

Royal Rank of Scotland

'4 A

Incorporated by Royal. Charter 1727

SHARES

BANK and INSURANCE STOCKS

HEAD

Bought

;

Sold

•

Quoted

•

York

Boston

5

Street

67 'Wall

,

WHitehall

10

,

Post

9

FBanklin

7535

;

: ;,

.

;

LOS

LOUIS,

ST.

^PHILADELPHIA,

CONNECTING:

YORK,

NEW

ANGELES,

BOSTON,

CHICAGO,

FRANCISO,

SAN

300

SEATTLE

PROVIDENCE,

Enterprise

Enterprise

.

Scotland

49

francisco

650 South Spring

7408

•.

-[•

v-

OFFICES

IN

Street

Bisbopsgatc, E. C. 2

■

8 West Smithfield, E. C. /

..

Charing Cross, S. W. I

Burlington Gardens, W. t

/ "

:los anceles

Teletype SF209-SF43I

•

PORTLAND,

6011

Montgomery Street

san

TELEPHONES TO

Enterprise

HARTFORD,

;II*C01IK»*A.**D

'

INVESTMENT SECURITIES

V

WIRE SYSTEM

3

California,Company

y'•*

CG-105

NY 1-2876

PRIVATE

First

1!

La Salle Street

231 S.

0650

throughout

LONDON OFFICES»

4

Chicago

»

*

,

Office: Square

HUBbard

3-0782

,

OFFICE—-Edinburgh

Branches

,

,

Huff, Geyer & Hecht
New

v.

•

!

:

:

64 New Bond Street, W. I

Teletype LA533

PRINCIPAL

CALIFORNIA

CITIES

TOTAL ASSETS

7008

£115,681,681

Bonk and Insurance Stocks

The International

This Week—- Insurance Stocks

(Continued from

By E. A. VAN DEXJSEN
In recent years

Fund

fire insurance companies have

so

broadened their

risks, while in 1941 and

1942 the proportion in fire risks had
dropped to 48.3%; in 1944 it was 54.5%.
Since 1920- by five-year intervals, the record is as follows:
Nv-r-'.
•
*
TABLE I
: c A/y;
;

clusion

!

••

.

Motor

Written

%

Ocean

Inland

Tornado

Vehicle

Fire

($000)

Marine

Marine

Riot

%

%

%

Leakage

1.

Misc.

quake

The

%

.

2.5

1920-

890,000

77.0

4.0

0.3

0.2

0.0

0.5

1925-

933,798

74.9

10.2

4.5

3.5

6.0

0.2

0.2

0.3

0.2

1930-

909,551

70.9

12.0

4.6

5.5

6.0

0.3

0.3

0.2

0.3

1935-

685,672

68.9

4.7

14.5

4.9

5.8

0.5

0.3

0.2

1940-

917,291

50.9

25.7

9.3

5.7

3.3

0.4

0.2

0.2

54,5

12.5

11.3

8.5

4.3

0.6

0.4

0.2

Fund

7.6

is

of

that

interest

pose

sential

19444

the

listed

not

Premium
for

the.

volume

in

years

1942

war

this. line
to

objectives

definition 3
cal

its

to

success.

1944.

The Fund is

3.

a

of india, limited

conglomerate of

One

of

are

the

in India, Burma, Ceylon, Eeoji
Colony and Aden and Zanzibar

States and other nations will

Subscribed Capital__

con¬

gold and
Fund:4

The

7-.

.

Local

and

Contributions

millions

(In

of

dollars)

^

rather than external.

.

be

51.3%
46.3%

risk,

exchange value of the
little, if any, economic'
Significance. Russia's needs would:

in the par value
its currency except to correct
"fundamental' disequilibrium."

of

change

a

pose

Inland marine lines have in¬
that, as a re¬
a
sult of heavy fire losses during creased in premium volume each
(Art. IV, Sec. 5 (a) ). What is a
the
war,
the
trend has
been year over the past five years. fundamental disequilibrium? The
strongly up since 1942. The com¬ Again, figures are for a group of Agreement gives no definition.
35 companies, which
collectively
pany having the lowest loss ratio
in 1944 was Hartford with 44.4%, write more than two-thirds of the
1941
37.3%
total inland marine business writ¬
while among
39.0%
1942
those having the
ten by stock fire companies. Their 1943
;
47.7%.
highest were:
Fire Association,
1944
^
_*«•-_
65.5%
loss
ratio
trend
has
been
as
56.2%; Aetna, 56.5%; Ins. of North
50.3%
Average
follows:
America, 57.2%, and Swiss Rein¬
Generally speaking, all times
1940
surance, 68.1%.
47.1 %
have suffered under war condi¬
—_______'
47.5%
Automobile experience over the 1941
1942
46,3%
tions,
and underwriting profits
past five years has been erratic. 1943
53.3%
have been below normal. Another
Loss ratios of a group of 35 com¬ 1944
52.4%
factor contributing to these re¬
49.8%
panies, which write about three- Average
sults has been a! continuation of
fifths of total automobile business
Extended coverage has grown
the downward trend in rates, es¬
written.by stock fire companies, rapidly during the last few years,
pecially in certain states. How¬
has been as follows:
undoubtedly, influenced by the
ever, increased volume has pro¬
1940
New England hurricane of Sep¬
54,1%
vided the companies with larger
1941
59.0%
tember, 1938. and the hurricane
1942
44.4%
funds for investment with the re¬
along the Atlantic Coast in Sep¬
1943
4i.2%
sult that net investment income
1944
59.4%
tember, 1944. The loss ratio trend,
of most companies in 1944 was
51.9%
Av*rage
1941 to 1944, has been as follows:
moderately better than in 1943.
It

will

be noted

____

4. The

credit

Fund

are

operations of
not related to

have to do with Jong-term credits*
an investment character.

i; The heeds of each nation should
receive

thing

Quotas determine the net bor¬

rowing
and

power

of member nations;

this

for

countries

at

deavored to

certain

reason,

Woods

Bretton

en¬

the maximum

secure

______

___

__

___.

results in
some
instances, according to The
Economist
(London) were ludi¬
possible

crous.8

The

amount.

ments vary

5. The

^

—

—

—_____

quotas are not
need or to capacity to

general the

related

—

repay

to

and hence cannot be com¬

_

__________

___ —

pared to lines of credit established
by commercial banks, which are
based upon a careful review and
appraisal of all relevant financial
and economic data,' in which not
only the need for funds but also
the ability of the borrower to re¬

—

—

__

Fire

losses

result

MANUFACTURERS

Guaranty

of

latter

ease,

TRUST CO.
Rights and Stock

Telephone:

A

BArclay

Members New
and

7-3500

Gibbs. Manager Trading Department)




un¬

ally give place to the normal con¬
a peace-time economy;
then, the loss ratios of all lines

teristic

their charac¬

resume

patterns.
appears

The market al¬

to.

have shown

year

Exchange

BROADWAY, NEW YORK 5, N. Y.

Bell Teletype—NY 1-1248-49
'h

will

sense

this, for

fire insurance stocks thus far this

Laird, Bissell & Meeds
York Stock

trend

ditions of

ready

New

the

reverse. The abnormal
conditions of today must eventu¬

will tend to

Bought—Sold—Quoted

Bulletin On Request

Members

still high as a
conditions; as the

are

war

doubtedly

Trust Co.

120

pay

is taken into consideration.

—

1

York

Stock

other leading

WALL ST.

Exchange

exchanaes

NEW YORK 5

Telephone DIgby 4-2525

appreciation

than

a

10.6% greater
the Dow

have

T"^pp

tios

T,Oc"

for

Best's

1945.)

the

various

"Insurance

T*a_

lines, from
News," June,

credit

agency

International

as

the

Fund,

tary

can

operate

success¬

i

:

given
be

from

the

specific credit needs of bor¬

of

the

problems involved
become apparent by raising a few
questions. What, for example, are
the requirements of England for
foreign credits, and in particular,
for dollar credits in the imme¬
Some

diate

post-war

period?

Will

France, in view of her large gold

holdings, reauire an external loan

purposes? Unlike
situation,
France's

for stabilization

the

British

monetary

the

problems

are

internal

-

such

with

plan.
are

the'
in

no assurance

is

its

will,

resources

productively.

purchasing currency'

Fund

tent

of

automatic

so

that

used

A member

must

purchases
the

These

represent
consis¬

are

of

purposes

the

however,

purposes,

broad and even this re¬
quirement along with all other
very

restrictive

provisions

V. Section 3

(a)

by the Fund

in.its

in

discretion.8

transactions have
the

can

limit

Article

be waived

may

Presumably only after

series

a

taken

place

Fund, after some de)ay,
deny the use of its re¬

or

to a member nation. The
burden of proof rests on the Fund
show that its resources had

sources

to

been

misused.

This

will

be

dif-"

ficult to demonstrate inasmuch as
the Fund finances general debit;
balances

rather

transactions,
the

of

use

by

large

a

not

be

than

in

and,
the

Fund's

power

specific'
event,,

any

resources

will

probably;

challenged.16

G. The

fully unless loans are tailored to
rowing nations and unless careful
study is given to the nature of
those
borrowing
requirements.

operations

are

character that

Mone¬

international

No

such

the

greatly from nation to[

credit

;Fund

———

In

and

'

nation.

of

"

'

study

a general stabilization.
Conditions and require-,

as

problem.

that

need.

nomic

careful

(credits extended should be geared^
to those needs. There is no such

the
eco¬

,

has

bf

1

,

<

a;

foreign

ruble

—

——,

cite still

To

controls she has imposed over her [
foreign trade, stand in need of va i
stabilization loan?- The external -

..

—

largely of checking

case, does Russia, in view(
of her. economic system and of the

.

^

matter

a

internal, inflation;
third

______

i.

The, stabil¬

ization of the franc would seem to

■

'

•

■

also undertaken

Total

Currencies

Gold

Countries-

cd

.

Trusteeships and Executorships

Currency

the

Local
••

description

Fund

to

"

1944

conducts, every

banking and exchange business

:

'

cur¬

^.___£2,2OO,600

-

does
Gold

Fund,

Bank

-

-/'V

,•

A v« r a ge

Reserve

;

portions of the

currency

.

£4,00G,0G6

Paid-Up Capital_—___£2,000,G0Ci

tribute the following sums to the

v

■'

in

Bishopsgate,
London, E. C.

Branches

688
2,750
2,062,
emphasis in the Introductory Art¬ United States
creased steadily, up to 1941,! when Curtailment of
Other nations
6,050
5,095
,955
driving in 1942 icle of the
Agreement. Its dual
the percentage was 26.2%. \ Ocean and
1943
caused
a
sharp drop nature, resulting from an attempt
7,157
8,800
1,643
marine writings have also been from the pre-war loss ratios. Last
to
fuse
the Keynes; and White
steadily increasing, to reach a year, however, general deteriora¬
plans, accounts for its obscurities wNo nation need have any dif¬
peak of 22.2% in 1942. The rela¬ tion of automobiles coupled with of language,
and/augurs ill for its ficulty in meeting its contribution
tively large percentage in mis¬ higher costs of repairs and re¬ success. .■: [\
to the Fund in the form of local
1
;-..a a,'.\ ;
cellaneous from 1940 on, is due placements,
moved
the
ratio
currencies, which can be created
to
the
inclusion
of
"extended sharply up. -'••• •
2. Obscurities exist. in the. latir at will.s !■}','■ y
••
y.,
; I •
Ocean marine experience was
%
coverage."
guage. and
meaning of the
It needs to be borne in mind
/
Agreement.
Analysis of the experience of greatly affected by war condi¬
that local currencies can be spent
groups
of representative; com¬ tions. Volume expanded rapidly,
In an address at the Lord May¬ only in the nation of issue, francs
panies in their various lines of for a group of 35 companies, from or's luncheon on October 4, 1944, in:
France, rubles in Russia, etc.6
underwriting during the past five $58,636,000 in 1940 to $173,998,000 Sir John Anderson, v Chancellor Often the
possessor of local cur¬
years brings out some interesting in 1942, but has since declined of
the
British
Exchequer, de¬ rencies can spend the currency
to $91,720,000 in 1944. Loss ratios
facts.
scribed the Articles of Agreement only if he has a ration card or
For example, the fire experi¬ have been as follows:
of " the
International
Monetary export license,
■'
^y^;'; -•'' y
•:
i
ence
of a selected group of 35 1940
Fund
as
a
"difficult document,
A~__42.6%
Although the total quotas in the
companies, which
collectively ,1941 —w—A——
58.1%. inevitably long and technical" and
Fund come to $8,800,000,000 hold¬
99.9%
write about 60%
of total stock 4942
stated
that
it
contained
some
1943
ings of gold plus those currencies
45.8%'
company fire volume, shows the 1944
"obscurities of language" which
50.3%
in greatest demand (the lendable
following trend in ratio of losses Average
had led to misunderstanding and
____„_____67.5%
assets) will probably hot exceed
incurred to premiums earned:
[
In 1942 enemy submarine ac¬ which must be clarified.2.
$4,000,000,000. The United States
1940
42.9%
An
example, in point is the supplies about 70% of the Fund's
tivity was at its peak, but by
1941
43.5%
%
42.1%
April of that year the Govern¬ phrase "fundamental disequilib¬ lendable assets.7
1942 ' I—II-II.-II—
49.7%
A member is not to pro¬
ment assumed the bulk of the war rium."
■

Government

26,

It is estimated that the United

Estimated

on

Office:

opposed to total quotas

as

the

to

Kenya Colony and Uganda
Head

$8,800,000,000.

.

-

Bankers

Lendable

currencies.

local

as

stabilization or economic
development.1
Both
are
given

averaged approximately half
the average-volume of 1940-1941,

national BANK

the particular

on

definition selected.

rency

has

of

And yet vital practi¬

policies rest

know, for example, whether

the Fund is to concentrate

Glyn Mills & Co.

Heberler

Gottfried

assets approximate $4,000,000-

of

Banks:

Harvard University points out the
term is not susceptible to
easy

•

lack the singleness of pur¬
and internal consistency es¬

4.1

1,138,878

It

v,,

of the Fund

purposes

The

0.2

1944-

premium
volume
constitutes
a
peak, and compares with $1,048,835,000 in 1943. The importance
of
motor
vehicle
writings
in¬

summarized
%

diverse and the objectives inconsistent.

J

5.5

be

can

Associated

Williams Deacon's Bank, Ltd.

67)

page

Professor

000

%

10.0

the

over

Springier Earth-

& Hail

%

<;%

succeed

follows:

Total
Net Prem,

Year-

will

long
run
in
furthering international
currency
stability and interna¬
tional monetary cooperation.
In
my opinion the proposed Interna¬
tional Monetary Fund will not ac¬
complish these particular pur¬
poses.
My reasons for this con¬

operations that the name "fire insurance company" has become al¬
most a misnomer.
According to tabulations prepared by the Alfred
M. Best Co., 77% of their 1920 aggregate premium volume was in
fire

Monetary Fund

credit

Fund

are

operations of the
without time limit.

It was the effort to
remedy this
defect in part that led to the in¬

sertion of Section 14 in H. R. 3314.
In

testifying before the Com¬
on Banking
and Currency

mittee
of

the

House

(March
White
that,

12,
is

it

of

1945)

Representatives
Mr. Harry D.

reported

would

not

to

fectly legitimate but it
expected

sales

of

if

nations,

their

own

have

only

be

said
per¬

would

making

be

net

currencies

to
the. Fund, did not
repurchase their
until after the

currencies
.

All

.footnotes; at end

expir-

of

article.

THE

Number 4400

162

Volume

COMMERCIAL

barriers and the checking of in¬
7 years. One of
i
the thing sTreasuries and central flationary trends. ,
banks have learned over the past
9. The Fund
conveys
no
assur¬
20
years,
he declared, is that
ance
of the removal of exmany years may elapse before a
:
change controls on current ac¬
payments is in balance. But surely
count.
nation's international balance of
I raise this point because the
loans for the period of time en¬ •<
visaged : cannot
be defined as impression has been - conveyed
that the Fund does insure the re¬
short-term.
V
'

of 5, 6, or

ation

controls on
current account. Member nations,
retaining restrictions on. current
account, are not compelled to re¬
move
them within a stipulated
moval

•

to pur¬
If this

shortages."12

provisions .of
'devices
tions

borrowing na¬
loans.
Interest
low level, prog¬

force

to

to

strictions

Agreement as

the

repay

rates

resources

of: the

Fund.

The Articles of Agreement con-j
tain

no

definition

of the phrase,

.

circumstances" Sec¬
5p Article XIV, instructs the;

"exceptional
tion

to recognize the fact that
post-war- transitional period
is one of change and adjustment
and in making
decision on re-!

Fund

,

.

the

quests occasioned, thereby, it shall
give the member the benefit of
any

reasonable

doubt.

A heavy

be

must

given

admitted

Fund

the

that

withdrawl of restrictions
rent payments

now

weak."
Not

teeth

the

on

but

that

the

of

Agree¬

ment of the Fund do not in them¬

cur¬

on

selves, as implied by many of its
sponsors, insure the removal of

-in effect are
!

1

member nations
allowed, if they so desire, to . re¬
tain exchange controls on current
account
through a
transitional
period of uncertain length, but
they are permitted to impose such
restrictions, where they did not
previously exist, in qase a cur¬
rency is declared scarce (Article
VII, Section 3 (b) ) and may im¬
pose restrictions on non-member
currencies, when such are not
contrary to the purposes of the
Fund.
(Article XI)
only, are

such restrictions.
10.

The

operations

of

Fund

the

might have the effect of uni¬
versalizing exchange controls.

Although it is the avowed pur¬
pose of the Fund to bring about
the elimination of exchange con¬
trols on current account, in actual
operation it might have the effect
of causing such
controls to be
instituted where they did not pre¬
viously exist and of perpetuating
such
controls
where they have
been

in

rests

on

force.

the

'

burden is thus put on

Articles

the

enforce

to

the Fund to
The point to Which I Wish to
payments prove that exchange restrictions' give emphasis in this discussion
on current account should be re¬
shall consult with the Fund as to
is not that exchange controls on
E.. E. Brown,
an
the further retention of such re¬ moved. -Mr.
current
transactions
could
be
-American delegate to the Bretton
strictions.
The Fund may, if it
Conference, stated18
"It quickly removed in all countries,
deems
action necessary in
ex- Woods

Fund point
and recapture

to the interest rate

exchange

,

The advocates of the

.

of

period of time. Article XIV,: Sec¬
tion 4, simply requires that five
years after the Fund begins op¬
erations, and in each year there¬
after, any member retaining re¬

be the case the Fund
can scarcely be termed a revolving
one
from which nations are "to

proves" to

meet temporary

make rep¬

member that
conditions, are favorable to
the
withdrawh of any particular re-;
-strictions.
After the lapse of a
suitable time, the Fund may de¬
clare a member ineligible to use
resentations to any

.

.

According to one of the Amer¬
ican
delegate
to
the
Bretton
.Woods
conference,
Russia will

]

.probably use the Fund
chase
capital goods.1!

ceptonal circumstances,

the

81

& FINANCIAL CHRONICLE

This

conclusion

following considera¬

tions:

current

a.)

the fact that; controls on
account
may
be pro¬

current

jected into a transitional period

(Continued

on page

82)

begin at a
slowly and would not deter
excessive borrowings.13
The re¬

ress

subject to

capture provisions are

exceptions and do not apply to na'tions

and

of the world's largest radio

manufacturer, the research of Philco scientists and

particularly ef¬
the case of those
nations developing an active bal¬
ance
of
payments.
These pro¬
not

-would

LABORATORIES

IN THE

reserves

quotas

their

than

less

"are

monetary

whose

•

prove

fective except in

would

visions

affect

not

to

engineers has produced miracles of electronic science for

any

our

those nations likely
greatest use of the re¬

marked degree
to

make

sources

on

the

Japanese empire, Radar and electronic equipment

de¬

step of the

of the Fund.14

automatic char¬
acter of the credit operations
of the Fund preclude it from
influencing internal monetary
virtually

7. The

fighters in the air and on land and sea. At every

advance

on

Berlin and the assault

veloped by Philco has done and is still doing its part.

policy.
True

stability

exchange

pre¬

and rests upon the sta¬
bility of internal price levels. To
achieve internal stability, infla¬
tion which is now taking place in
all
nations
would
of necessity
supposes

have

Inter¬

The

checked.

be

to

Monetary Fund is given

national
no

From Radar Research to

Radio for your

to interfere with or to
recommendations concern¬

power

make

ing the domestic monetary and fi¬
nancial policies of member na¬
tions.^
In fact,
it is enjoined
from raising questions concerning
;"the domestic social or political

policies" of those member nations
requesting a change in exchange
-rates (Art. IV, Sec. 5 (f) ), and
yet such policies are almost always interrelated with financial
it

which

loans

sored after the last war,
of

to

the

production for war, the scientists j

sum

of man's knowledge in elec¬

found

dissipated

undertook

nation

important a part on every crucial battlefield, they hive

borrowing

a

decade of scientific progress into months.

In this brilliant record of war research lies your assurance

its

balance

to

compressed

soon

were

otherwise rectify its

and

budget

so

the Eco¬

experience

by

granted
unless the

credits

played

spon¬

the League

of

Committee

Nations

that

engineers of the Philco laboratories have made vital

research and

tronic science. In their achievements which have

the

nomic

their

contributions

action.
In

In
and

.

•

home

for the future

.

v;

Philco laboratories turn

when the

finances.

internal

from radar

to

8. Because it deals with the me¬

than with the

chanics rather

radio for your

home. For before the war,

the achievements of its laboratories gave

Philco

an

t

un-i

fundamentals of the exchange

broken record of radio

problem, the existence of the
Fund would not promote ex¬
change
A

stability.

member nation

changes in

its

years.
may propose
ence

exchange rate to
disequilib-

fundamental

correct

-

And repeated surveys of post-war buying

show that America looks to

radio, by an average

If the change,

inclusive of all
does not ex¬
ceed 10% of the initial par value
of the currency, the Fund shall
raise no objection.
For changes
beyond this amount the Fund
must concur.
But Sir John An¬
ria.

-previous

leadership for twelve straight

of 3

prefer¬

Philco for tomorrow's

to 1 over any

other make.

changes,

Yes, in radio, in FM

duction, in television—whatever developments scientific
progress may

derson, British Chancellor of the
Exchequer, has declared16 that
the Fund is obliged "to allow a
change
in
exchange ' rates
in
order to correct
a
fundamental
disequilibrium."

days

nation

to come as

Philco presents

requesting the change is itself to

you may

await them

in the past!

it

whether

faces

Paul Whiteman, Georgia Gibbs, the Merry Macs.

Sundays, 6 P.M., EWT, American Broadcasting Company

'

"fundamental

hold for the future,

from the laboratories of Philco, the leader... in the

implication

The

of the statement is that the

determine

reception, in phonograph repro¬

a

disequilibrium" and

whether, in consequence, it is en¬
titled to alter its

In other

lateral.

Fund

exchange rates.

words, action is still uni¬
Consultation

becomes

a

mere

with

the

formality.

Sir John stated emphatically

that

PHILCO

England did not surrender "any
ultimate right" to follow its own

exchange policy.1?
The

fundamentals

stability

are

of

exchange

the removal of trade




RADIOS

•

PHONOGRAPHS

•

FM

•

TELEVISION

•

REFRIGERATORS

•

FREEZER

CHESTS

•

AIR CONDITIONERS

,

THE COMMERCIAL & FINANCIAL CHRONICLE

82

Thursday, July 5,1945.
"Times"

fie International
United States

of indefinite length,
;

Government Securities

The longer
such controls are retained,
the more they become part of
the

will

.

Bankers Trust Company

of

dis¬

between "* t r a n s capital and current
account.19
Exchange controls
on capital transactions may be
maintained indefinitely and the
introduction of such controls
may be requested by the Fund
to prevent the resources of the
Fund from being used to meet
a
large sustained outflow of
capital (Art. VI, Sec. 1 (a) ) or
to prevent a member's own re¬
sources of gold and foreign ex¬
change from being used to meet
capital movements not "in ac¬
cordance with the purposes of
the Fund,"
(Art. VI, Sec. I, d
(ii) ). The- fact that:the. Fund
may request the imposition of
exchange controls on' capital
Transactions ' where they did' not
previously, exist, along with the
difficulty of distinguishing be¬
tween capital and current trans¬
actions and the consequent need

YORK

on

.

Oui RcporlGE on Governments"
By JOHN T. CHIPPENDALE, JR.
.

The heavy oversubscription of

the Seventh War Loan, created
a great demand for the marketable drive issues, when trading took
place in them, for the first time last Monday. . . . The market was
the

to

despite the efforts of "Federal"
orderly. .
At intervals the spread
between the bid and offered prices of the new issues was as much
as a quarter of a point,
At the opening, the I V2S, 2V4s and the
2^s were all quoted 1014/32 bid, with no offers, ... Then bids
were moved up to 101 6/32nds with early trades
reported to have
taken place in the l1/^ at 10110/32nds, and in the 2xk% and 21/2S at
confused

and

almost

the

dealers

to

entire

.

.

1018/32nds.

at

.

,

10118/32nds.

was

being
It

.

was

.

.

The 2V4S,and 2J/2S,

c.)

quoted 10118/32nds bid, offered at
reported that the high sale for this bond

.

-

were

,■/.

,

which

at

the

new

switching developed, out of the new
and vice-versa.

and

old

securities Into the old. issues

■.■'

.

)V";'

■■

■*

between

transactions
TAXABLES BREAK NEW GROUND

'

issues was the feature of the Gov-;
of the taxable 2s went, to new all-time
highs as did the higher coupon bank eligible bpnds such as the 2V2S
of 1952/54, the 2^s of 1952/55, the ZV2S due 1956/58 and the
due
9/15/67/72.
Some switching and selling of the June and Decem¬
ber 2s of 1952/54, as well as the.. 21/2S due 9/.15/67/72, resulted in
these bonds closing off slightly from their tops. , . ,
Although trading in the

.

new

.

.

Nevertheless, these three issues are considered among-the
most attractive obligations for commercial banks, and their pur¬

chase is recommended at

present prices,

by the 21As
due 1956/59, the 2%s due 1962/67 and the 2*/2S due 1963/68, all of
which went to new highs.
\
v
.

..

The partially-exempts were

ment

-y^.^

Sixth

the

War

best previous
Loan.

.

.

.

sum

is

It

of

$21,621,000,000, obtained in the

indicated that

,

,

,

Disclosure
now

of

the

ended, resulted in

bond

exceptionally
a

fine

the

of

results

drive

i

strengthening of the entire Government J

list

and, in addition, gave strong support tp the opinion
in market circles that the next Treasury war loan financing
will not take place until some time in the forepart of
1946,
,

;

able to

these

effect

bilization of the pound or to
exchange controls.

currency

It

the

has
is

not. a

V

conduct,

contributions

that

it

provides

of

of .the

tions

exchange stability
of ex¬

elimination

controls

are

to

be

The pound and the dollar are
''key currencies," in the sense that
the bulk of international trade is

presented to the, British
public as a victory for exchange

flexibility an<J: as the antithesis
of the gol<f standard, or of: such
aradical

departure.

that

the

standard is reduced tp the status

apart,

so

much

so

that in efforts

to

get their plan adopted the ex¬
perts have to engage in what
comes dangerously close to double
talk."24
In

letter

a

to

the

New

York

rather than late this year, as was previously expected.

gold

pointed out that future sales of Government securities to
individuals and corporations will be more of a problem than it was
.

.

.

,'.y.

y

to

succeed

dollar

When these
lose

are

the

even

ill

augurs

Fund.

long

as

for

It may

assets

as

its

remain.

exhausted, it will

semblance

of

suc¬

International harmony will
way to discord and recrim¬

cess.

give

inations

unless

continues
dollars.

to

But

the

United

supply
to

continuously

States

additional

supply the Fund

with

unlimited

amounts of dollars would put our
own

currency in

jeopardy.

>

.

-

The Fund offers no basic solu¬
for the monetary, problems

tion
of

a war ridden, world. Until
such
questions as relief and
recon¬

struction, war debts and commer¬
cial policy are solved/
attempts
at

international currency stabil¬
ization will prove abortive.
Credit
extensions of automatic

type

visaged by the Fund

.

are

en¬

sub¬
stitute for the solution of funda¬
mental problems.
^
,
Basic
in
the. stabilization ojf
no

currencies

is the elimination of
barriers to trade.20 A world trade
conference should be
Convened

immediately

to
consider t and
evolve constructive action. In the
absence of such action,
exchange
,

stabilization rests upon an ephem¬
eral basis.
Although in its, re¬
port, Commission III of the Bretton Woods Conference
did give

emphasis to the need to reduce
obstacles., to international, trade,
the discussions
centering around
the. Fund have tended to divert
attention from this
all-important

problem.^ Not until nations
exhibited
effect

real

a

•an<^

hav.e

willingness

drastic reductions

to

in tariff

e^iminate import

pro¬

hibitions and quotas,
export sub¬

sidies, regional preferences, bulk
buying, etc. is exchange stabiliza¬
tion

a

practicable goal.
in

experience

twenties,
sort

to

credits

we

an

as

a

the

After

decade

our

of the

should not again

extension

of

re¬

foreign

substitute for the

duction in obstacles to
trade.
The United States must be

re¬

will¬

to assume leadership in such a
trade conference and must
be pre¬

ing

pared to effect a substantial re¬
duction in its tariff rates. Never
we

have

nity to do
of

so

transition

a

better

than
from

when economic
our

POLICIES ADJUSTED

problems,
of the

and

shall

...

It was

in this drive.
:

■:'(

securities that will be sold to insurance companies and savings

r

success

appear

Agreement

by commercial banks, there will be no decrease in the rate of
banks.

the

Various sections of the

are

cur¬

the failure to solve funda¬

as

mental

interpretation
have arisen concerning the rela¬
tionship of the Fund to the gold

Williams to write: "But there re¬
mains the fundamental fact that
national attitudes are very far

the

well

of

modified gold standard; other sec¬

code of

a

conduct.2^

The ambiguous character of the
Articles of Agreement of the In¬
ternational
Monetary Fund, as

code

of
the
Fund are presented to the Ameri¬
can
public as a victory for ex¬
change stabilization and for a

pro¬

such

ternational monetary coopera¬
tion or international harmony.

of

-

of

to

open

The Fund will not promote in*

;

British external financial
problem which must be solved

13.

However, so
basic questions have arisen;
concerning the meaning and in¬
terpretation of the Agreement,
that it scarcely merits being dig¬
nified by the term "code."
For
example, various * questions have
arisen concerning the interpreta¬
tion of Article VIII, 0 Section 3,
having- to. do with' the avoidance:
of discriminatory currency prac¬
tices. The:. "Times" (London) has
inquired • wheth'er " this
section,
would- prevent special currency'
agreements * within the
sterling
area.21 Lord Keynes fias* declared
that there is. nothing" in the plan
inconsistent with Britain require
ing a country from which it im-s
ports to take in return a substan-;
tial quantity of its exports.22

Articles

that

and

ambiguity of its

is

does not constitute

many

standard.

flexible

widely
divergent interpretations certainly

of currency conduct.

Differences

be

the

visions

rency

one

a

will

of

son

re¬

code

been stated that

great

Fund

Is

Fund

reverse

gold standard, that exchange

a

reciprocal trade agreements in¬
volving
discrimination
will
be
permissible."
An Agreement which, by rea¬

move

12. The

multilateral

We have been assured that

rates

firm sta¬

a

and

they constitute the exact
of

re¬

commercial banks with

savings deposits, subscribed to more than $1.2 billions of the l^s
due 12/15/50,
This would result in a grand total for, the Seventh
War Loan of about $2? billions, or approximately twice the formal;
Treasury goal of $14 billions.
- .
/
?
,

be

Unless

These wide differences in points

solve

achieved.

...

trade,

met, England will

of view caused Professor John H.

and

It is estimated that the Treasury in the Seventh War Loan will
about $27 billions.
This wilT exceed by "a substantial

amount

cur-

not

are

the

change

raise

its

dollars.

,

11. The Fund does not

1

■

may

billion

quirements

You

stability, non¬

currency

discrimination

exchange problem for the
that it dpes not provide
England with the financial assis¬
tance that she will require in the
immediate post-war period. Brit¬
ain's
needs
may
total
several

that

and

if genuine

quiet with some minor better¬

being evidenced in the last four maturities.

7TH WAR LOAN VOLUME

standard,

reason

-

.

The outstanding restricted issues were in demand led

.

the stabilization of exchange rates

of a constitutional monarch.23
of all other
The British Chancellor of the
members
takes
place
within
certain prescribed limits (Art. Exchequer said (The1 New York
IV, Sec. 4(b)) would tend to the experts' proposals (the immeperpetuate and to generalize a "Times," May 11, 1944, p. 5) that
complete control of the foreign diate precursor of the International
exchanges.
Monetary . Fund) did not mean
The recapture clauses of the a return to the gold standard and
did not require the elimination
Fund might lead to permanent
exchange control on both cur¬ of any special arrangements ex¬
isting within, the sterling area.
rent and capital account.?0
rency

ernment bond market, most

\

on current ex¬
change transactions, whenever a
currency is declared ~ "scarce"
(Art, VII, Section 3. (b) ), the
fact that such" controls may be
imposed on non-member nations
(Art, XI, Sec. 2), the fact that
a
member
nation,
unless it
freely buys and sells gold, * is
charged with the responsibility
of seeing t.o it that all exchange

selling;

were

y'

.VV

impose,controls

^

issues

are

the

d.) the fact that nations

.

.

levels

unenforceable, which

actions.

.

.

Agreement), would
probably cause governments to
review
all
exchange
trans¬

.

.

(b) of Article
exchange
con¬

making"

with

day the market lost some of its early enthusiasm
and prices receded slightly with the 1V2S closing 101 9/32nds bid,
offered at 10110/32nds, the 2%s and 2V2S, 10113/32nds bid, offered
at 10115/32nds.
; After the market had an opportunity ,tp
con¬
the

Section 2

contrary to the exchange con¬
trol regulations of any member
nation
(imposed
consistenely

Later in the

sider

exchange controls.

tracts

/.,/■'

AT CLOSE

e.xchange
well: .tend to

VIII,

quoted 10117/32nds bid,
10120/32nds, with the high sale for these bonds reported

offered at

LOWER

universalize

all

may

.

during the day,

to have been 10117/32nds.

scrutinize

transactions;

,

prices for these issues moved ahead with the

on

time

one

101 20/32nds.

,

-

...

From then

114s

day,

it

keep

basic problem in

The

wide.

already

Woods proposals take us
all back along the road to a gold

British

difficulty

the,

actions

Institutional and other Investors

\\

other.

is

Bretton

concerned

tinguishing

Banks

16 WALL STREET, NEW

nations

prove.

b.)

•

the

Mr.

1945),

have beed led to believe that the

one or

econpmic life1 in* general -is the- stabilization-' of
and the pound-dollar rate.
tf^e more difficult their removal > The Fund does not solve the

Primary Market Serving

Corporations

countries

81)

the fabric of the
of

A

page

transacted in terms of the

14,

wrote: "The dii
vergence of view between the two

!cmetaiy.;Fnftil

(Continued from

(March

Robert Boothby

.

opportu¬
the period

systems,

own, will be in

of flux,

in

to

peace
a

war

including

general state

*Vi

-

reliance by the Treasury on the savings
A Positive
banks and insurance companies, in financing the deficit which will
Program
still be substantial.
The alternative to the
Also the financial policies of these institu¬
adoption
tions. are adjusted to the present level of interest rates oh the Gov¬ of
the
International
Monetary
ernment obligations they can buy during the drives, . . . This rate
Fund is not chaos., It
offers no
is very satisfactory to them. , .
It was also noted that these con-1 real solution to the world's mone-"
cerns are non-profit organizations/ mutual companies, owned by the
tary problems. It does not con¬
depositors and policy holders.
stitute^ a code of currency con¬
duct. It will not contribute to
Accordingly It is the opinion of these money market experts
in¬
ternational harmony.
that so long as the insurance companies and savings banks follow
A positive program would
the instructions put out by the ''Federal Authorities," they will
emget all the 2}4s and Z\i$ they can use in the future. . # .
yJ?e fo.llowing elements;
This will mean greater

...

FUTURE

RATE

PROSPECTS

The large oversubscription of. the Seventh War

Loan, as well as
for the outstanding obligations,
changes in interest rates and ma¬
turities/may be expected in the Eighth War Loan,
The general
the substantial demand

that exists

raises the question as to whether

.

level of interest rates continues to decline and there

.

.

are some

money

market experts who believe that there may be a lowering of rates
or an extension of maturities or both in the next drive.
They
.

.

.

point out that 2J/4s and 2s could be sold to institutional investors,
without difficulty.
Also the opinion is held that the maturity
of the 2V2S could, be extended with the 2^5. replaced with-a longer
maturing 2% bond.
.

....

...

On the other hand

j

there

are

many

money

market experts

who contend that there will bp no change in the interest rate of

■

1

1.

COMING MONTHS
It will be interesting to see what takes place in the Government
bond market in the coming months, in view of these conflicting ideas
on the future trend of interest rates.
.
It was recalled that not
.

.

obligations that Will be offered to institutional investors in the

coming War Loans.

,

1

long after the Sixth War -Loan, the Government, market started in an
upward trend that carried it to new all-time high levels, when it was
feared that there would be no more

...
It is the belief of this group that no
matter how low the rate may go on issues eligible for purchase




high

coupon bonds.

offerings of the long-term high

The rejection of the

tional

Monetary

Interna¬

Fund,

as

Un¬

workable and unsound.
2. The immediate
a

world trade

convening of

conference,

3. If the trade
conference proves

successful,
All

the

United

States

footnotes at end of
article.

the

of

solution

post-war

This problem

exchange problem.

must be solved, if

crucial and

is

the
British

its assistance in,

lend

should

HE C6MMERCIAL & FINANCIAL

Number 4400

Volume. 162

multilateral system of payments

a

is to be restored.
As

4.

-

,

further important con¬
towards
international

a

tribution

stability, the United
would cancel World War
I debts, repeal the Johnson Act
of 1934 and stand ready to accord
monetary

jStates

a

treatment in the

generous

very

.settlement of Lend-Lease assis¬
tance given in World War II.
1

I 5. The United States would ac¬
cept membership in the Interna¬

Reconstruction

for

Bank

tional

which would
long-term
stabilization
loans,:
to
gather
monetary information and serve
sas a meeting place for the mone¬
tary authorities of member na¬
and

Development

stand prepared to make

.

•

tions.

"

■

>

>"

.
.

/..

mulation

of

.

constructive -and

a

well-integrated foreign
lending
-policy. This is essential if we, as
the creditor nation of greatest po¬
tential power in the post-war pe¬
riod, are to exercise a stabilizing
on "international' eco¬
nomic relationships. *,r. -

'Influence
'

dollar loans whether
public or private ac¬
count should be confined to uses
■which; will ; enhance the export
Foreign

i

.extended

on

"Federal Reserve

4.

1944, p. 855.

stating

provide a dollar in which- other
nations will have confidence. This
will nof prove easy;
The road
back to sound currencies is diffi¬
cult

economically.. and ..seldom

popular politically.
As soon as
possible in the post-war period
we must divorce the commercial
banking system from deficit fi¬
nancing, balance the federal bud¬
get, and refinance the floating
.

debt.

to retard post-war inflation-

sary

dry

These measures are neces¬

lar

we

without

international currency
all nations will have

confidence.

In conclusion, my recommenda¬

)

is

tion

the

that

International

Monetary Fund be rejected; that

the International Bank for Re¬
construction and Development be

accepted with the changes sug¬
gested by the committees repre¬
senting the
American Bankers
Association, the Association
of
Reserve
the
City Bankers and
Bankers Association for Foreign

Trade; that a conference of United
Nations be assembled as soon as

possible to give consideration to

in

British

States

barriers;
cooperate

extent with Great
solution
of
the

fullest

the

Briain

trade

United

that' the
to

of

removal

the

problem;

foreign
the

policy;

lending

dollar

American

and
be

that

estab¬

firm basis that
it will have the confidence of the

lished

on

such

a

J,

In

his testimony

before

the Banking

Harry D- White, Assistant to the Secretary
of the Treasury, is quoted as stating that
fur}d exists in order
emergencies."
The emergencies

"stabilization

a

meet

(cited were those

and war.

He

to
he

arising from crop failures

said

that the

war

had left

countries with their factories destroyed and
Inventories depleted and that, in conse¬

required.
But would such use of the International
Monetary Fund- be consistent with Article
XIV, Section 1, of the Articles of Agree*
quence,

a

stabilization

ment?
\

,

2.

"The

fund

was

News/'

carload

lots

to

,

and

class

are

the

be but

London,

Oct,

of

On

portant
and

we

be

can

freight rates

the

are

other

to
hand,

relatively unim¬

in 1 the woolen industry,
find that, this industry

continues to be centered in New

England, where around two-thirds

uniform

of its. value of output is produced,

fication

for

rates

on

a

approximately the same .pro¬
portion as in 1900,
"In. view - of
the mobility of

or

nation-wide; basis. exists -

when
conditions
upon
which
rates
should be based, such as the den¬
sity of traffic, character of ter¬
rain, type of cargo, and the like,

section

the

most

im¬

portant industrial area in the na¬
and

tion,

one-third

country."

it

accounts

of

the

-

total

for about
value of

this

in

goods

V*

..

.

!•

Hazard Freres limits

and

capital

labor,

and

markets

raw

proximity
materials

to
has

'become the deciding factor in the
dissimilar.
7
As a re¬
"Behind this decision,'' it is fur¬ (location of new plants.
ther stated, "there was a great sult of this influence, the milling

Partner

sson as
A. Glen

Acheson,

Commander

in

Reserve

Naval

a

Lieutenant-

the United States

for

the

past

two

and recently
transferred to inactive-duty, has
been
admitted to the firm
of
Lazard
Freres &
Co., 44 Wall
one-half years,

and

Street, New York City, members
of the New York Stock Exchange,
as

a

.

are so

general partner.
Acheson

Mr.

was

*

formerly

a

partner of F. S. Moseley & Co. and
prior to that was an officer of

Chase-Harris, Forbes Corporation;
Hijs, admission to partnership in
Lazard

Freres

&

Co.

was

previ¬

ously reported in the "Financial
by sec¬ industry, 'which had .its beginning
tional groups-intent upon using a ron the Eastern Coast, now centers Chronicle" of June 28th,
Forrest C. Lattner, a partner of
in Minnesota * near the
revision of freight-rates as one of largely
the means of remaking the eco¬ wheat, regions.; The slaughtering Lazard Freres & Co., who had
deal of

Report of

this

make

shipped

freight rates throughout the
country.
But no economic justi¬

form

International Monetary

On*

the

New

York

Bankers

State

f 7".

Association." Feb. 0, 194.5, pp. 34,: if. "i,,
•

International

U. Brown/ Edward E. "The

Certain
The Journal of Business of

Objections," the University

political

pressure

of

1944,

October;

Chicago,

exercises its

Assuming that a nation

13.

net

September,

.?

1944, P, 851,

assuming

borrowing rights each year, and
that it does not .fall subject, to
.

provisions, it would take
for the overall rate '(excluding the
charge), to reach
3 years to
reach 4%, and 10 years to reach 5% after
which the Fund could fix rates at its dis¬
cretion. - Not until the rate applicable to
the

5

repurchase

years

service

years,

•

Dunbar

a

Director

RADIO

«

broad exemption
from the recapture provisions, for the first
five .years of the operation of the Fund.
(Schedule B, Section 4).;
7
;
Russia

14.

is

given

a

,

'Clearly, the agreements neither im¬
particular monetary policy upon
members nor prevent them from re¬

15.
pose

any

the

sorting Jo

monetary- policy

any.

designed

-

to protect their own interests. > * * The
members are completely at liberty to ex¬

pand or contract their own money, to bal¬
ance or Unbalance their.; budgets, to invest
home; in short, to pursue
policy, they thipk
Ernest H.' "The Agreements
of Bretton Woods". Economies, November,
1944, TP- 174-176).
7 *-v
7;7'7''
disinvest

or

at

domestic monetary

any

fit."

(Stern,

•

16.

Financial

"The

October 5,

News"

.

1944, p. 3. "

(London),
_

of the Fund have
IV; Section 8e re¬
quiring nations to maintain the gold value
of
the Fund's assets
will deter member
nations from exchange depreciation. This
requirement, however, is not particularly
onerous as nations depreciating their, cur¬
The

17.

declared

proponents

that

Aritcle

rencies simply give the Fund an increased
proportionate amount- Pf .their pon-interest-bearing, - non-negotiable demand notes.
These it would pot have to honor unless it
developed an active balance pf payments.

Interantional Monetary Fund;
of Certain
Objections."

"The

18;

Consideration

A

of the University

The Journal of Business
of

206.

p.

XVII.

Vol.

Chicago.

1944,
tions

entered

Russian delega¬

reservations to the
current transactions ip

specific

definition given to
the

October,

4,

No.

...

Both the French and

19.

Articles pf Agreement pf the Fund.

20.

*

John
H.
"The Bretton
Agreements."
Proceedings of the
Academy of Political Science, April, 1945,
Williams,

Woods

21. September 5,

22.

The

nance

U.

S.,
23.

the

1944, p. 5.

Proposals,

Woods

Bretton

Fi¬

Dept., Chamber of Commerce of the

1945,

February,
Professor

78.

p.

".:

Monetary

,

described

has

Kemmerer

International

r'

Fund

"a

as

HALLICRAFTERS IS THE WORLD'S LARGEST EXCLUSIVE MANUFAC¬

collection

of mapaged-paper-money ^tandwhich,- in practice, would, be largely
by a politically * dominated in¬
ternational board."
"The American Dollar

TURER QF SHORT WAVE RADIO

erds

COMMUNICATIONS EQUIPMENT

controlled

the

the

New

Bretton

Woods

Institute

on

Plan"

Money

an

and

York City, Jap. 16, 1945.,

24.

Williams,

Monetary

John

Plans:

Fpreigp Affairs,

Before the war Haliicrafters manufactured communications
equipment used by 33 governments in 89 countries. For
excellence in producing the famous SCR-299, mobile radio
station and other high frequency communications equip-;

address

the- Law,

■;,

,

i

.

"International
Woods."
1944, p. 53,; .. '

H,

After

October,

Haliicrafters became the first exclusive radioj
win the Army-Navy "E" award five times.
Haliicrafters equipment will continue to be;
the first choice of government, commercial and industrial
leaders who are looking for world-wide -applications for
land, sea and air communications systems.
m^nt

Bretton

After the

But such

code, even if clearly defined and en¬
forceable, would have little real signif¬
icance, inasmuch, as currency difficulties
of an international character originate in
a

the

war,

BUY A
BOND

WAR

.

to

war

COPYRIGHT

1945

THE

HALUCRAF.TERS CO.

TODAYI

"key countries,"

26. Lord Keynes

haliicrafters

has written that "forms

pf commercial policy, permissible under the

that,
if they, are adopted, • Bretton Woods will
have been rather a waste of time." "The
so

for

manufacturer

25. It has been suggested that the Agree¬
ment might constitute a code of currency
conduct for the smaller nations;

destructive

of

multilateral

trade

1944),

'

—

—

,

sider

pf'its currency can be reduced, "

11

"Freight rates are only one of f cause of its bulky character, tends
tq. have its factories located hear
John B. Dunbar, a partner of
the many factors that determine
•the farms where it is used.
Cruttenden & Co., 209 South La
the location
of.: industry under
''The
predominant
Influence, Salle Street, Chicago, .111., was
normal procedure, including the !'
elected as a new director of the
availability
and
cheapness of i however, in the establishment of
Whiting Corp. at a meeting held
industry is its nearness to con
water power, relative producivity
of labor, nearness to market, ac- sumers'
markets.
This is evi¬ June 26, 1945.

bracket has reached 4%; are .the Fund
the member nation directed to con¬
means by which
the Fund's holdings

any
and

been with the firm for

has retired because of ill health.

j

Federal Reserve Bulletin;

12.

map
of the country by Industry has been shifting to the
causing' migration' of industries •West and. Southwest, following
from the populous East to the the movement of the cattle in*
dustry. - Farm
machinery;
bet
West and South.
y

nomic

.

202.v.'■-•■-*. ■"• r|,;'■;

p.

g, 1944, p. 3.
„3. Haberler, Gottfried. "Currency Depre¬
ciation
and
the
International 1 Monetary Times" ^London). "Aug. 30,




product

market.

a

center of

Carlisle,
IndAbundant resources, stimulating
climate, and a strategic geographi¬
cal
position have combined to
of

t

play a major or a minor role is
determined largely by the nature
of the product.
In the case of
cement, for instance, transporta¬
tion costs limit the distance that

rate

170 miles of the

population

manufactured

cessibility to" raw materials, and
forth.
Whether., freight rates

Brettop Woods currency proposals,- may be

..

Financial

differ¬

Monetary Fqn,d.'-A Consideration of

at
and Currency Committee of th.e House of
Representatives. (March. 12,
1945),
Mr,

.

industry in the country is m
East
North Central region,

within

-

and

trading world.

1945, that "participation

Woods Proposals. .;

.

so

preliminary
step Toward bringing about uni-

indirectly for the above purposes.

the" Committee

that

the United States formulate a con¬
structive
and
well
integrated

than

believed to

,

the

exchange

less

the

10. Bretton

•

Commission decision

it involves class rates that cover

therefore' subject

.

cannot establish the dol¬

an

as

which

in

and

developments

•

Ihem

Commerce

shippers in the East would he
'•'penalized'' because they ship in

.

full

6
One of the greatest contribu¬
tions
this
country
can;: make
towards post-war .stability is to

.

only 4.1% of the freight'tonnage
of the country"
and that small

participation in- .the Fund.":
Subscription tP the Bank,„hfi explained was
a
pure liability.
i
' ;. .
9.
The
only
transactions
specifically
prohibited: are that the -Fund may not-be
U6ed "to meet a large or sustained outflow
of
capital"
(Article,, VI, 'Section 1(a).. or
"to provide facilities for relief or recon¬
struction *pr'. to
deal with' international
indebtedness
arising out
of
the war."
(Article XIV, Section I).
However, unless
the
Fund
finances- Specific
transactions
Instead of a general passive balance of
payments, as5-is its purpose, there is no
assurance-that it. will not be used directly
pr

i

•

hav^ but little general 'influence^"
as

the Committee: on
pf the House of Representa¬

to

March 7,

on

than

.

.

in which the Southern
class freight rates 10%,
and the Eastern carriers were ordered to lower the same rates by
a similar percentage.
After stating that the "decision will likely

Interstate

an aggre¬

the Bank means something quite

ent

.

.charges, the article gpes on to say
that "the long-run implication of
Banking this ruling is disturbing, as it is

and Currency

tives

1'

Railroads were ordered to lower their first

Canada subscribed
$25,000,000 more tp the Hank than to;the
Fund; China, $50,000,000; and the United
States $425,000,000. ' Dr. White'was quoted
as

Toward Nation-Wide Uniform Rates.

)

gate pf $46,000,000 less,

capital accumulation.: To . look
pppn capital exports;as a means
jbf, maintaining; full employment
-in this country, is to render, our
.foreign borrowers a greatdis¬
service,

other nations

six

Fund and

the

the

The June 30 issue of the New England Letter of the First Na¬
tional Bank of Boston contains a pointed comment on the recent

.

borrowing nation
audits power to acquire foreign
exchange for .; repayment. Foreign
(dollar loans should not exceed the
capacity of the. foreign nation for
productive utilization of the funds
borrowed, r; They should, supple¬
ment and not supplant domestic
the

of

A Preliminary Step

of

Fear That It Is

First National Bank of Boston Expresses

non-negotiable
local
Currencies.
This
action
may' have
the
effect of obscuring the opeartions of the
Fund, particularly in the case of.. nations
selling currency to the Fund,
6. See "Federal Reserve Bulletin," .Sep¬
tember, 1944, p, 858.
/ ' >
7. Bretton Woods Proposals.
Report qf
the Committee on International Monetary
Matters of the N. Y. State Bankers Asso.,
Feb. 8/ 1945,.p. 27.
> /•
■'
8. Issue of July 29, 1944, p. 138. See also
The Bretton Woods Proposals, Chamber of
Commerce of the United States, pp.-13-17.
Conversely nations endeavored to reduce
capital subscriptions to the International
Bank for Reconstruction and Development.
Latin American Countries as a whole sub¬
scribed $154,000,000 less te the. Rank than
bearing

notes" may be substituted for

Matters

ability

-

Non-Interest

5.

.

demand

denced by the fact that the center

Disturbing Implications in IGC Hals Decision

No. 4. November,

tistics." Vol. XXVI.

in

be taken
fcy the United States, is the for¬
6. Still another step to

i',

of Economic Sta¬
1944.
Bulletin," September,

Review

--"The

Fund,".

S3

CHRONICLE

THE

CHICAGO 16, U.S.A. • WORLD'S LARGEST EXCLUSIVE
SHORT WAVE RADIO COMMUNICATIONS EQUIPMENT

HALLICRAFTERS CO.,
OF

radio
MANUFACTURERS

Lr

Thursday, July 5,1945

THE COMMEKCIAL & FINANCIAL CHRONICLE

84

NASD Not to
Union

From SEC Ruling on

Preferred

Announcement

Prospectus upon request
v

•-

1 OHmtSllHB COMPflNlIS I

the

ruling of the SEC which held

that it lacked authority to penal¬

ize members

for

maintenance

derwriting

Lord, Abbett & Co.

securities

INCORPORATED

•

CHICAGO

violating pricein

contracts

made

was

the

un¬

of

distribution

and

2.9

June

on

by Wallace H. Fulton, Executive

ATLANTA

•

Na¬

the

Securities

of

Dealers, Inc., will not appeal from

Mwmtoms Mmtms

•, J

that

Association

tional

YORK

:

Disciplinary Anthority

Stock Fund

NEW

Agspoa!

LOS ANGELES

-

Director

Prospectus

on request from

Principal Underwriter

the

.

••V.Wealthy Investors and Mutual Funds

>7

.

,•

,

of
of

said:

out of the

grew

levying fines against 70
for
violating a price

members

;

Advices

bureau

Journal"

Street

decision

NASD's

Minneapolis., Minnesota

,

"The

NASD.

Philadelphia

"Wall

June 30

INVESTORS SYNDICATE

Initial Funds

the

of

the

from

agreement in connection with the
insurance

Life
.

the

whose earnings were

man

of

man

his savings. As one wag has expressed it, life
possible for the average man to provide funds
burial and a new dress for his wife to enhance, her pros¬

for his own

At the time the mutual life

pects for another spell of matrimony.
companies were being §>
*

r~•

—

~

-

insurance

developed little thought was given

possibility that they might
individ¬
uals. After all, wealthy men al¬
ready had an estate.
And yet, look at the life insur¬
ance business today.
The advan¬
to the

attractive to wealthy

Railroad

Equipment Shares

mutual life insur¬
companies made available to

individuals

which

advantages

Prospectus

difficult

be

of

person

find

to

on

Request

portance,

vestment

63 wall st.

acceptable

of life

insurance.
Mutual funds were also devel¬

oped for the man and woman of
means.
Their primary pur¬

small

pose is to provide the advantages
of professional investing at a cost

which small investors can afford.

funds

are

evidence that they are filling

this

sales

Unit

of, mutual

purpose.

to

wealthy indi¬

be attractive to

viduals

as

well. Whereas the aver¬

mutual fund

investment. of

age

shareholders
less than

because

ten

years

ago

was

$1,000 per person, today
of

purchases

larger

by

problems.

Stock

wealthy individuals, tne average
has

$2,000

doubled

than

more

to

over

shareholder.

per

advantages of
mutual funds which wealthy in¬
dividuals find attractive?
They
What

these

are

be listed as follows:

may

Prices

Today

than 50% below
showing the long
range
of 90 stocks

more

term

price

embodied

gress.

in

7

■,

"

an

Act

of
T

.

Con¬

-A. v..

2. Greater diversification of in¬

practica¬
wealthy person in

vestment than would be
ble

even

view

of

for
the

a

tremendous

amount

chart

bears out this

statement.

ures—the so-called 'inflation fac¬
tors—are far

above," and the fol¬
lowing table is presented:
1929

dividends

1945

Percent

(Billions of
Dollars)

problem, of computing taxes

on

Change

from

a

1370

mutual fund shares on which tax

NATIONAL

dividend information is sent

and

regularly to shareholders.)

Securities Series
'"7

Guaranteed marketability at

3.
fair

liquidating values. (The mar¬
for any individual security
can
become disorganized if sud¬
den
pressure
for liquidation is
brought to bear. The marketabil¬
ity of mutual fund shares is not
dependent upon just one individ¬
ual security but enjoys the sup¬
ket

Prospectuses upon request

National Securities &

Research Corporation
120

BROADWAY, NEW YORK, (5)

port of all portfolio securities.)
"

■w
i'

i

.'f
V

k

■'

A

,v..

J

Special tax treatment of mu¬
eliminating the double

tual funds,
■

r/f

4.

f

.

:

taxation

which

is

incurred

'

Government Debt-

$17

$25(1

up

National Income—

received

large number of individual com¬
panies is eliminated by use of

83

150

up

81

Demand

Deposits.

23

71

up

Deposits—
in dr¬

28

42

up

209
50

4

26

up

550

Time

Currency
ift,ion

—

—

The article concludes: "With the

greatest deferred demand in his¬
tory and the prospect of reduced
tax rates after the war, American

industry appears headed for a pe¬
riod
of unprecedented
prosper-

•"

ity."
"Pocketax
L.

W.

•TJV'./.V

& Co., general
Wellington Fupd,

Morgan
of

distributors

high book value and
share of 50 low-

per

sold at

they

average

an

price of $6, and on April 1st, this
year, their average price was $15.
"But since 1937, they have had
five years of high earnings, which
have been used largely to improve

equipment
and
to
financial
condition,
with the result that average book
value of $28.96 a share at the end
of 1944 was 40% higher than at
the

of 1937—and

end

•

"In short,

1944

earn¬

than double those
'
' ■
7 >■'

were more

1937.

:

.

these stocks are sell¬

ing at little more than half of the
1937
average
high price, with
book value now 40% higher and

share earnings more than
higher." 7777.77 7,;.777 7

100%

The Office

Equipment Industry
Securities & Research

National

Corp., in the current issue of In¬
vestment Timing, reports on the
"Peak
Production
Ahead
for
Office

We

Equipment Industry." 7.-,
pertinent ex¬

quote a few

cerpts* from this study:
major

the

among

industry has been

this

"While

producers

of

has
simultaneously aided the war efand

armament

for

the

it

munitions,

by continuing to turn out for
Government, war plant and

land-lease

requirements, many of

its normal

products which include

typewriters, electric typewriters,
filing cabinets, cash registers, and
a variety of time and labor-saving
"As

.

.

Act.

Justice,

The

syndicate agreements violated the
Shermian Act.

"Wallace H. Fulton, NASD exexcutive director, said:
'The SEC opinion dealt
"

with
phase of NASD disciplinary au¬
thority that was of minor im¬

a

portance in relation to the broad
purposes

of

raised

issues in respect to the
of
other
statutory

no

the

To appeal

powers.

(ap¬

Besides descrip¬

tabular

information,

tive

and

many

examples are cited to sim-r

plify. its

use.

In the

&

Co.,

words

of W. L.

"it is indeed

Morgan

one

of the

the SEC de¬

a long and cosily
undertaking which the Executive

Committee and the Board of Gov¬
feel would not be justified

ernors

by the
cision

limited

effect

of

the

de¬

the Association's activi¬

on

ties.'"

Kidder, Peabody to
Admit R, P.

Sempton

Kidder, Peabody & Co., 17 Wa!
Street, New York City, membei
of the New York Stock
Exchange
will admit Randolph P.
Compto
to, limited partnership in the firr
as of July 12th.
Mr. Compton wa
formerly in business as an indi

vicinal dealer, was an officer c
Union Securities Corporation, an
was
Manager of the Municipc

Department

of

Co.

7

'

Lazard

Freres

I

templated peace-time production;
indicates

that current output
per
quarter is $17.5 millions, with 'allout' or capacity production at re¬

tail estimated at

$120 millions

an¬

nually."

of

completion

Mutual Fund Literature

or

cutbacks of war contracts and mu¬

V-E Day,

National

Securities & Research
Corp.—Current issue of National
Co.—-Current

small booklet

and

cision would be

Notes

a

Association

enforcement

7.

It is

and

Division, had argued
price-fixing provisions of

that the

some

1945."

Trading

Exchange

to

supply of the booklet, "Pocketax

of
for

counsel

as

Commission's

the

nitions orders following

and made available
its affiliated dealers a limited

Department

well

as

.

result

a

deciding the point,
expressed
the

has prepared

hensive tax data.

eystone

1938

In

not

Commission

Trust

priced common stocks as com¬
pared to their relatively low cur¬
rent average price.
"The average price of these 50
stocks at the high in 1937 was 27.

machines.

1945"

proximately two and one-half by
four inches)
containing compre¬

[jShares of Capital Stock of

earnings

the

did not violate the Sherman Anti-

of Keynotes

1944 per

pointed out that "al¬
though stock prices are far below
1929 levels, other financial meas¬

(For example,

the

;

It is also

of detail, involved in handling in¬

dividual securities.

issue

an

view that the effect of the price-

and
strengthen

than 17% below its 1937

high and

safeguards

1940 of

and

maintenance contracts in question

of 50

issue

current

stresses the

ings

investments

their

The

of

more

and Earnings

Low-Priced Common Stocks

current levels the stock market is

A

under strict protective

we

Assets

News," Distributors Group,
sponsor of Group Securities, pre¬
sents
a
convincing story of a
bright future for stock prices. At
still

that

tax references
have ever seen."

handy

most

plant

ment

1929.

as

*

its current issue of "Invest¬

In

1. Low cost, professional man¬

,

*

new york 5, n. y.

►

agement ; of

<

However, the advantages which
mutual funds afford are proving

little wonder
wealthy indi¬
turning to mutual

*

health who does not carry a large

amount

are

is

more

funds for the solution of their in¬

GROUP, Incorporated

a

there
and

more

viduals

DISTRIBUTORS

what these com¬
panies had to offer. And today it
could profit by

wealthy

Securities/ Inc.

are

that

they, possessed.
Wealthy people
soon
discovered that they too

would

other

advantages but
these are the major ones.
When
you consider their scope and im¬

of small means were

only

the

not

"While

through the use of personal hold¬
ing companies.
: /'
5.
Continuity of management
and
supervision of investments,
giving the investor freedom from
technical
management problems
during his lifetime and protecting
his estate through the often diffi¬
cult and extended period of set¬
There

A Class of Group

1939

$39,000,000 of bonds of Public

Service Co. of Indiana.

tlement.

tages which the
ance

of

made it

insurance

be

sale in

of

out

estate

an

small means—
not sufficient to permit him to create
for the

developed

was

companies in the industry
are
expanding production
and sales of their regular lines,
which even last year were about
50% of the industry's total vol¬
ume.
'•
'7 '
■.■7*;
"In early post-war years
the
sales of typewriters will no doubt
exceed
1941 production. of ap¬
.

.

.

Things

.

Selected

Seemed

Distributors
to-date

Investments

issue

of

"These

Important."

Group—Revised,

issue

of

the

up-

booklet

-

proximately 1,300,000 at a factory
value of

about

$65

million.

The

"Group Investing in Undervalued

Securities"; current issue of

Rail¬

road News entitled "Present

Val4

ues

in

Railroad

Stocks."

'

*

WPB, in a recent survey of con-

Custodian

Manhattan Bond Fund, Inc. '
REPUBLIC

Funds

INVESTORS
FUND Inc.

Prospectus of
Investors may

Incorporated
be obtained

Founded 1932

Prospectus
from

your

may

V, THE

PARKER
ONE

BOSTON.

CORPORATION

COURT

MASSACHUSETTS




Keystone Corporation

50

Congress Street, Boston 9, JVlass.

W. R. BULL MANAGEMENI00.,

INC.

Distributors
St:, New York 5..

Bond

declared

Fund,

per

10 cehts

share and Extraordinary-

Distribution
share

of

5

cents

per

payable July. 16, 1945

to holders of record

7

Inc.

Ordinary' Dis-

tribution No. 28 of

COMPANY

close of business

Prospectus on Request

15 William

ss&sz

has

INVESTMENT

*

local investment dealer or

o/Boston

STREET,

Manhattan

Mutual Investment Fund

be obtained

from investment dealers or

Tke

The Board of Directors of

COMMONWEALTH

as

of the

July 5,1945.

HUGH W. LONG and COMPANY

GENERAL DISTRIBUTORS

Incorporated!

NORTH AMERICAN SECURITIES CO.
2500 Rum Building • San Francisco

4

</

■Il.lil/

National
48

Wall

Distributors'

Street^ New. York

" *

5/N;

Y.

■1

Volume

Managing the Public Debt

who

inter¬

same
maintain sound money will
either kill any budding prosperity
or create black markets in capital.;

est

time

actuarial ex¬
pectancy of life.
The amount of
the monthly or quarterly instal¬
ments might be increased and the

It will only be natural for individ¬
uals and
businesses to seek to

capital at the greatest
The increased de¬
mand for capital resulting from
their

use

opportunities
always,
buyer's market in lowyielding bonds. To continue cheap
money in the post-war period by
increasing the supply of currency
or
reducing the value of money
would lead to destructive infla-,

of

obligations. The inter¬
would be substantially

of the annuitant to

beneficiary

nated

reward.;

tion.

angle the post-war
outlook is clouded by

every

economic

problems of the national debt.;
the prices of bonds to

the

allow

To

they would if

as

supply of cheap money would-create inflation in its worst for™the

regulate the flow of capital
into selected industries and hold

To

down. artificially
restrict business and create
rates

money

would

unemployment.

National Debt

The
'

v"y-

.

•/'

Problem

large
holders of the public debt in billions of dollars are about as fol¬
lows: Commercial banks, 75; in¬
dividuals and personal trusts in¬
cluding charities 65; non-financial
corporations 25;
panies 20; the

insurance com¬

Federal Reserve

While these figures are
not accurate and these relation¬
ships are always changing, they

present

give a rough idea of the
distribution of the debt.
financial corporations and individ¬

combined hold less
dollars, or less

outstanding national
debt.
In order to maintain sound
-money and credit conditions, and
of

-half

strong

the

banking

the

ment

and

money

credit

dividuals

institutions, it will

bonds

to

for

be

the

safe

guaranteed Government re¬
funding annuity arranged to meet
the convenience of beneficiaries, ;
In the course of five
or
ten

as

to any need or

or

It

of the annuitant.

can

adapted to retirement, unem¬

.

This form of the investment
the best and safest

tion of the debt and its

from

the

standpoint of both the
the Government.

investor and

details

The
lined

plan

of

the

"Chronicle"

The

on

invites

Wrjght in this article,

Dr,

benefits.

small

a

Commercial and Financial Chron¬

icle,

needs, to pay college
donations to charities,
provide for annuities for de¬

or

A

pendents.
estates

created by this plan will

be

on to the next genera¬
the estates created by most

passed

tion

as

allowed

be

should

estates

certain exemptions from taxes as
a

reward for low interest rates, it

is

conceivable that many billions

permanently
market

of

bonds

Government

of

1%

locked

and
or

removed

could

up

be

the

from

rates

at

This has another

less.

both

the

standpoint

the

from

appeal

national

the estates,

economy

of

and that is long-term

refunding

and

annuities

is

LOS

R.

the

Morgan & Go.
ANGELES, CALIF.—Bruce

Wallace, prominent for many
in the investment banking

business in Southern California, is
now

associated

with. Morgan

634

Mr.

South

Wallace

was

with Edgerton, Wykoff
its

predecessors.

perhaps 15 to 25 years, As
are paid, new an¬

some

sold to investors v/hp
will purchase these securities out
of earned savings.
;
;

investors.

of the necessarily low
Government bonds, and
because of the great need for cap¬
ital in the reconstruction period

rassing. Actuarial experience does
not, indicate any danger of this

turities and

Because

-yield on

the, problems of
the Federal debt, in the

the

-after

war,

placing
hands of investors,

holding down

interest rates arid holding up
-.the price .of the:,s,ecurities seem"
ari unsurmpuritable task - of, tryiP!
to ride at least. three; horses going
>in different directions, ; ;
,
; /,
But there must be some solution to this problem, and that solution should be found, and found
?the
-

-

-

-

J

order to build a safe
from war to
prosperity.
>

quickly in

-transition
-peace

Proposed Solution to the
tional Debt Problems

A

*

bridge

a
*

actuarial records,
percent of the people who
employed and reasonably we 1

-

the ages of 40 and
unemployed and dependent

off between

*

are

50
by

reach the age of 65,
"Savings are hard to keep in this
changing world where we pro-" cress
to new
and better living

-

the time they

*

:

conditions through

<

01 Would

1

own

destroying the

individuals who now
Government bonds be wilhug
the

bonds^ with the
-United States offices of pensions
and annuities and receive, a gyaJ"r
anteed refunding annuity payable
*r
to each holder on a monthly or

*

to

deposit these

-

*

*

-

beginning at any
holder..
The bonds deposited1 with the
annual
interest compoundec
would constitute the full amount
to be paid back to the annuitant.
quarterly basis,
age

r

1

.The

designated by the

earlier

the., payments

"The* srifalier eacir

begam

payment' would




that
bunch

could

up

embar¬

become

volume

an¬

condition developing; but if it did,
the market for Government

bonds

annuity demands
would take care of such a peak
meet

to

new

load when the

public is educated

to. the. merits of

such annuities;-;
of
bearing. 2%

thousand dollars worth

Ten

Government /bonds

1

15 thousand dol4

will increase to

lars in 20.47 years.

1 ;

-

•

WHERE AN OLD ART BECOMES A MODERN

bene-)

the

to

advantage

The

;

annually)

compounded *

interest,

would
be the - absolute
safety of both principal and com-)
pound interest, and a certain in¬
come at a definite age and date.
ficiary

The advantage to the

would. be

ment

large

are

the

and

It might seem

payments

nuity

Na¬

According to

-

by new holders or

the future

:

;

annuities

nuities will be set up for payment
in

the

of

quantity

become

re¬

of

over

long

a

period

;

of

(and .history
that debt becomes easier
to pay with the lapse of time and
economic growth); a large part of
the payments would be postponed
into the next generation of bene¬

additional far-reaching effect

upon

a

discoveries that will have

in the future...WATCH US GROW!

following the experience
Gov¬

ernment bonds would receive the

benefits of their investments and
not

lose

them;

a

depend¬

able flow of purchasing power
to

the

hands

be assured.

Insurance
and

of the aged

vided

in

general

would

by these annuities
by the Government

would approve

-the

1

companies, creditors,

business

benefit

would

; 1

-

in¬

the plan.

£ Froedterff...
Grain & Malting Col, Inc.
Plants; Milwaukee, Wisconsin (two)
\

Minneapolis, Minnesota
•

»

•

•

Winona and

Detroit, Michigan

Milwaukee, Wisconsin

pro¬

antf:

One of.

great -weaknesses- of: the

in-*

Progress Reports

modern science.

the production and

of annuitants; the buyers of

would

has

Here in the plants of the world's largest commercial maltsters—

Our laboratories have made important

proves

ficiaries

they

prime necessity in the production of certain foods and

the making of this basic product has become

in the future

years

uses,

r

bonds; the postponement

interest

a

...

essential chemicals. '

interest
of

art

revered his skill. Now malt, in addition to its general

this

Government
of cash
payments; .the spreading
the payment of principal and

vast

SCIENCE... The ancients knew of the maltster's

Govern*

present

market

the

from

moval

&

Spring
Street,
members of the Los Angeles Stock
Exchange, according to Emerson
Morgan, head of the firm.
Co.,

payments might begin in the near
future, a large part of the annui¬
ties would not begin for many
years,

York

years

and

investments in Government bonds

.be

New

Brace Wallace Now

With

annuity plans are.
If

Place,

the

part of

large

25 Park
(8), N. Y.

of

percentage

or on

related phases of the subject
under discussion.
Comments
should' be
addressed
to Editor,

,

,

While

com¬

any

annuity

refunding

for

is to pre¬

the views expressed by

de¬

be

would

bonds

ernment

posited

.

out¬

of managing the na¬

100 billion dollars in Gov¬

to

above

tional debt have been eliminated

it is conceivable that from

years,

disposi¬

problems

ployment

-

nev»r

war.

expenses,

of the annuity.

Ttvs nlan should

practicable.
be adapted to any

rapidly

purpose

sell the
depositors with a
or

seems

paid for the protection for

have

all investors in the destruction of

ments

as

The plan can
of income

them

investors must

some

the Government bonds which

own

sent the idea.

a

specific rate of interest to be comoounded annually during the life

deposited to gain the benefit of a

50

bonds

But

living.

tions

condi¬

people deposit Government bonds
and accept annuity contracts or
whether they deposit money and
authorize the Government to buy
the

prise to provide capital for employment»and through productive
use help to raise the standard of

and the present purpose

size

of

effort

sources

and bank¬
conditions, b a 1 a n c e s the
budget, and proceeds to reduce
the debt to manageable propor¬

tions in this country.

purchased by in¬
corporations and

and

determined

a

profits, and moneys of all
be) iri productive enter¬

ings,

ing

dependable

of

makes

place for retired money. It is, of
always desirable that sav¬

course,

to restore sound money

possible

make

also

restoration

sound

for a large part of
the debt held by the banks to be
converted into longer term ma¬
necessary

be

-

would

plan

unless the Govern¬

is futile

debt

the

This plan

bonds would be

than

billion

100

shall be paid

porations to be deposited in the,
payment of social security taxes
and retirement pension funds.
In
addition, billions of Government

-banks 16.

uals

present

of

refinancing

pension annuity for bor-i
rowing new money.
The use of
this annuity plan or any other
aids in managing the Government

Government re¬
If people were fully informed
funding annuity based upon the
as to the safety of this method of
deposit of Government bonds is
providing for an income in retir¬ an adaptation from old and proved
ing years, I believe a large part annuity plans used successfully
of the present individual owners: by governments to foster thrift,
of more than -35 billion
dollars protect the savings of the public'
worth of Government bonds would and provide a safe income for
deposit these bonds and accept a thrifty people in their retiring
The ruse of Government
guaranted refunding annuity for years.
them.
The social security laws bonds in such large quantities to
could be revised and provide for pay for annuities or create annui¬
It would make no
the billions of dollars worth of ties is new.
Government bonds held by cor-; difference, however, whether the

present time the

the

At

tne

the

of

banks would be greatly
aided
through the demand for
these bonds for annuities. Such a

stolen.

markets, would bring losses to
vestors who had to sell or use

.

the

by

Neither
the bonds nor interest can be at¬
tached for debt, hypothecated, or;

left to free
in¬
the
-bonds as collateral for credit.
*:
To support the bond prices and
low money
rates by increasing
fall,

increasing

of

Government debt, Congress

large holdings of short time debt

the depositors.

needs of

adequate

and

adopted,

the

annuity;

an

on

safety,

If such a plan should be

convenience •' and

the

meet

to

From

except

income basis which

But

banks.

savings

inducement

ficient

annuity plan is per¬
and the bonds cannot be

recovered

method

other

sion annuities and forbid the use

is made, the
manent

of this

stability,

inal

a

excessive
against the danger
annuity plan becoming an¬

present

debt. To guard

additional

in any way

brings

the
Government

managing

and

dependability would be suf¬

directed by the orig-j
depositor.
'
Once such a deposit of bonds

business

stabilizing

the

paid by insurance com¬

and

panies

disposed of'

or

in

and

below that

desig-i

a

borrowing power or its debts by
annuities. It could be a large help

should
designate the specific issues of
outstanding war bonds that are
eligible as investments for pen¬

rate

est

annuity de¬

out' to

will

advantage.

,

insurance premiums

payment

the original bene¬
ficiary could be passed on by the

paid

out of em-

and other

Any part of the fund not

creased.

or are

people

These Government re¬
funding annuities would provide
funds which would help in the

be, based upon the

life of the refunding

retired

are

by

payments

ployment.

(Continued from first.page)
Any attempt to hold
rates down and at the

rates.

by a Government to increase its

business is the default on

surance

premium

85

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4400

162

Supplied Upon Request

use

of malt

previously
& Co. and

THE COMMERCIAL & FINANCIAL CHRONICLE

86

War Underlines

Tomorrow's Transportation
$$*■

XContinued from page' 66)

of

draws

large volume of
The three roads

Central

is

a

nongahela—a partnership that has
functioned happily and
more

even

efit of all who use the Mononga-

country

hela's services.

and the P. & L. E, both reach im¬

in

ditions

under

do

which

if

conditions

to

are

While

be

Pittsburgh's

Pennsylvania,

have in
trust

& Ohio, and the New York
Central Systems. These great sys¬

more

have

been

identified

to

think

we

the

suit

terstate

administered by the In¬

Commerce

Commission

forestall

To

v

■

of the

Lincoln

now

the
and

suit

there is

friends

.

threat
others

:

.

of

I

'

this

like

it,

pending in Congress

the Bulwinkle

Bill, H.R. 2536. We
are
appreciative of recent ap¬
proval of this bill by this Cham¬
This bill would enable rail¬

ber.
roads

and

other

carriers

to

con¬

mak¬
rates, by conference with
shippers and with each other, and
ing

incon¬

also to make other kinds of agree¬

Interstate
approved
them as being in the public in¬
terest.
The passage of the Bul¬
winkle Bill is necessary, if we are
going to have sound transporta¬

sistent

which

for

business

is

not

with

each

of

these

three

Maybe we

"backbone"

of

the

forces.

armed

all egotistical; but
if so, it has its good points—this
pride in a job well done. Because
every one of us feels he is the
are

"backbone,"
have been
need

to

armed

our

able

to

fight this

thus

ments,

provided

Commerce

the

Commission

tion in America.

rail¬

4% in 1944.

underlined»the

forces

get what they
war.

thrusts

war

ern

upon

nation's

a

transportation.

is still right in

war

front of us, is a good time to be¬

looking toward the future.
nation, we are thinking of
the future, as never before. Wide¬
spread public interest in the San
gin

As

a

Francisco

conference, in recipro¬

cal trade agreements and in other

great public issues affords healthy
of

evidence

the

istic

but

the

at

of

determination

the American people to
same

be ideal¬

time

I

venture

was

503,000,000,000

538,000,000,000. Of this stag-?

gering increase* the railroads car¬
ried

;

to

405,000,000,000 ton miles,
or
80 % of the whole
increase.
They had to handle two and one-*

of small

fourth times

boys after they have grown

1944

over

as

as

many ton

they did in 1939.

miles in

/

/

j

The railroads in 1939 were car-,

rying about
62%
of the total
freight ton miles handled by all

carriers—including water, motor}
pipe line and air—whereas in 1943}
and
1944
their
proportion .was
about 72%. The share of total top
miles handled by* all inland water
carriers,

including

the

Great

Lakes, fell from 18% in 1939 to
14% in 1944. The highway per-?

BROKERS

Specializing in %

/'

\a

boys—and also of small

have

You

heard

much

up.

about

diesel,'gas turbine and other oilburning locomotives, all of which
have their place in the railroad
world; but I think it is also time
to

something about the coal

say

On the New York Cen¬

burners.
tral

have

we

time when the de luxe streamliner
will

the

be

standard in

general

railroad passenger transportations
On the New York Central System
we

hope to begin taking deliver¬

ies

of

of

first

the

cars

senger

we

300

new

pas¬

ordered

have

and these 300 cars represent

—

$22,-

worth —just as soon as
and
materials
are

000,000

manpower

available.

•

Number

One

Class

new

our

dual

S-l

service

freight and passenger locomotives.
We

have

ordered

26

more

loco¬

It is a 4-8-4
coal-burning lomotive with
innovations.

The S-l loco¬

in service has taken

now

heaviest passenger trains

all

the. way from Harmon to Chicago^
925 miles, "with the greatest of

v%
With

€&se.

v.

the

;

Pennsylvania,

& Ohio

thd

and several

of

other railroad friends, through
Bituminous Coal Research, Inc..

ment

of
a

a

gas

locomotive-—one

new

turbine that

bi¬

uses

tuminous

coal

In

project, several rail¬
endeavoring to develop

as

the

basic

fuel.

another

roads

Publishers of

are

high-power steam turbine-elec-*
trie locomotive, also a coal burner.
Coal, after all, is the biggest
and cheapest source of primary
energy in the United States. The
a

"Guide to Railroad Reorganization Securities"

coal industry and other industries
working with it appreciate the im¬
portance of bringing modern re¬
search and technology into thO
problems of efficient utilization of

Analytical Service for Out-of-Town
Dealers in Railroad Securities

coal.
era

I

think

we

can

look to

that will bring into

reality
Coal."

many new powers

'•

an

practical
of "King
;

•

/

Applying War Lessons io Peace

PFLUGFELDER, BAMPTON & RUST
York Stock Exchange
NEW YORK

Bell System

6, N. Y,

Teletype—NY 1-310

During
this * war, > we
have
learned how railroad capacity can
be increased by the heavier load¬
ing o£ freight cars and by faster
loading and unloading. This heav¬
ier. loading also .reduces railroad
costs.

You and all other

patrons

of the railroads have co-operated
to the extreme to load cars heav¬

ier, and to load and unload them
After the war, we are
hopeful that as a result of your

promptly.

do they

maintain these fixed ways

pay taxes on

or

Railroads

them.

must

,

>

raise

private
capital to provide their fixed
ways.
They must pay a fair re¬
to investors—that is, if they
going to have credit and be
able to secure more capital. They
pay taxes on their fixed waysheavy
taxes.
Fixed
properties
comprise three-fourths of the in¬
turn
are

Of

total

a

American

in

vestment

railroads*

investment

of

about

running, for $25,400,000,000, only one-fourth,
months, the first of $6,600,000,000, is invested in equip¬

three

over

with




our high-speed
freight service, Simi¬
larly, in passenger service, to the

of

merchandise

been

we are co-operating with the coal
industry in a major research proj¬
ect looking toward the develop¬

Railroad Securities and Reorganization Securities

Telephone—DIgby 4-4933

to

war

:

forward post¬
the re-establishment and
looking

are

waterways and airports without
which they could not operate, nor

about railroad im¬
provements. Locomotives have
always excited the imagination

Baltimore

61 BROADWAY

We

,

our

Members New

our

,

things

our

■

to

suggest

I would like to mention one or

•

two

motive

\:V; •''

provided,

mutual benefit and satisfaction.

America's

A Finer Breed of Iron Ilorse

many

STOCK

be

can

be

to

more

they handled in 1939, which

type

and

then

hard-headed and practical.

motives of this type.

BOND

expensive

ransportation—rail transportation

extension

The Railroads' Place in the Future

Now, while

will

most efficient and least

—

the kind of traffic load that mod¬

now,

lions—-were
than

tinue the present method of

co-operation.
An example of competition with
co-operation is the Monongahela
Railway. The Monongahela serves
a rich coal territory in Pennsyl¬
vania
and
West Virginia, from

tition

War ■» has

over

roads because

*

since 1887.

Pennsylvania and the Baltimore
& Ohio can justly take pride in
having followed a "good neigh¬
bor" policy. We have tried to be
good neighbors in competing with
one
another; to compete on a
plane that helps Pittsburgh and
helps all of us. We have tried to
recognize, too, that keen compe¬

our

anti¬

pending at Lincoln,
It appears as if the

now

federal transport regulation, as it
has been

competition. I do not
appear
boastful but I
and

together as they
That threat is

past.

purpose of the Department of Jus-?
tice in bringing that suit was to
undermine our whole scheme of

Pittsburgh's indus¬
tries almost from the beginning.:
Toward one another, these three
railroads are co-operative but at
the same time maintain a healthy
want

about

ability of the rail¬

work

Nebraska.

with

the growth of

of

talking

in the form of the railroad

Balti¬

the

the

to

roads .to.

railroads

country's largest

three of the

spirit

;

co-operation, I want to
you that there is a serious

threat

Co-operative Competition

Among

tems

are

we

railroad
warn

—the

less

competition

make

A Threat to Rail Health

healthy.

are

lessen

do
COStly.

things that must be done,

those

arrangements, however,
competition; but

not

they

rail¬

your

roads work—and to suggest 'some

of the

Island, without duplication of

These

That is why I come before you
noon to talk about the con¬

kind of teamwork.

the

little

Transportation Problem
that the
But optimism about the railroad
country's experience with rail¬
future rests
on
an
assumption*
roads in this war is sufficiently
important to warrant every Amer¬ That assumption is that conditions
ment of civilian passengers. This
ican asking himself, "What can I of competition among the several
redeployment of our troops is the
do to secure the safety of my- forms of transportation will be
most recent of a long succession
Those condi¬
country through keeping its rail-' reasonably equal.
of events that shows how youl
roads strong?"
> tions were not equal before the
railroads
have
served
as
the
war and will not be equal when
To me,
your
railroads, given
giant assembly line for America's
the war ends, unless we do some¬
war, machine.
I am not going to; fair -and reasonable consideration
thing about it. To establish equal¬
on the
part of industry and the
burden you with statistics
about}
ity of opportunity is : America's
government, will have a bright
how much traffic we have
Number One transportation prob¬
han-j
True, they will come out
died but I do think you would be future.
lem—and it ranks high among alR
of this war with
facilities that
interested in looking at war trans4
of the nation's problems,
; • }
show: wear and tear.
But they
portation from a little different
The problem I am talking about
will also come out in improved
viewpoint. That is, to look at how;
seems complicated but its essen¬
financial
condition and with a:
war's increase in the
country's
tials are Simple. ? Railroads own,
resolute determination to give the
transport load has been; taken upj
maintain and pay taxes on their,
nation' new and higher standards?
by the several forms of transport
fixed "ways" — tracks,, terminals
of service.
And their purchases
tation.
'
Ivv-' for;
and all that goes with, them. The
improvement arid rehabilita¬
In 1944, the freight ton miles
railroads', competitors,, highway,
tion will be a\mighty, force in;
handled by all agencies of
water and air, on the other hand,
transj producing jobs on America's pro-;
do not own the great highways,
portation—-over one thousand bil-j auction lines.
?
;

facilities.

this

the

for

a

absolute necessity for

"redeployment" of
our
forces, as the military men
call it, creates tight spoiS in war
transportation and in the move¬

including Nev¬

portant territory,

promotes the

as

Right

ille

welfare of Pittsburgh.

a new

support

58

Lake Erie associates are so active

everything that

bution

miles, from McKeesport to
New Castle Junction, is one of the
larger co-ordination projects
among American railroads.
With our Pennsylvania friends
we have the Pittsburgh, Chartiers
& Youghiogheny agreements,
under
which
the
Pennsylvania

important connec¬
tion for Pittsburgh business.
We
are pleased to feel that we are a
"part of your community and we
are happy that our Pittsburgh and

our

suppose each member of this
team lopks upon his own contri¬

the P. & L. E., for a distance

over

of

an

of

I

The Baltimore & Ohio trackage

great stake in the
Pittsburgh area, not only through
the Pittsburgh and Lake Erie, but
as
well because the New York

mies

our war-time, econo¬
continue so that the

experience

in 1939 to

Government—all have shown the

have become partners in the Mo¬

roads

a

centage„ dropped from about 8%

strong rail¬
railroads, and railhave
toads alone,'have the capacity for

all

important, to the ben¬

burgh's prosperity.

System have

and

industries

smoothly,
the benefit of the partners and,

this coal traffic.

to

our

transportation agencies
worked, and worked together, as
never
before.
Steel, coal
and
other industries; the railroads and
other
transportation agencies;
and the civilian agencies of our

ery, glass and other proaucxs mat
form the very life-blooi of Pitts¬

Think of the
railroad
dollars
spent here
in
terms of jobs for your workers
and the pay which those workers
spent in your. city—and it be¬
comes easy to visualize the vital
stake which you all have in keep¬
ing Pittsburgh's bands of steel
dependable and strong.
We of the New York Central

Railroad Lesson

a

Co-operation, too, has been the
keynote in fighting this war. All

Thursday, July 5, 1945

The other $18,800,000,000
capital cost to the railroads
of providing their own roadway.
ment.

is the

To

own

and

costs

way

an

maintain
,

average

000,000 each year.

this

road¬

of $1,325,-

In

1940, 30%
rail¬

of the gross revenues of the
roads

used to pay this road¬

was

way expense.

■y-

Public

in Transportation

Capital

■

-

■

•

As of December 31, 1944, the
taxpayers of the country had in¬
vested in civil airports the sum
of

$1,027,000,000. This compares
private: capital invested iii
the domestic airlines, as of June
30, 1944, of $129,361,000. You and
I and the rest of the taxpayers
with

Mad

also spent $1,122,000,000 on
navigation improvements* in the
Mississippi River System, up to
June 30, 1943. Common and con¬
tract Carders on that river system

alone,
including
the
Federal
Barge Lines, had invested only
$54,000,000 in equipment; even
allowing for the additional invest¬
ment of private carriers, it is only
a

fraction

ment

in

of

the

fixed

public invest¬
Other bil¬

ways.

lions are invested in

highway im¬
provements, all over the country.
These highway, waterway and
air facilities, built with taxpayers'
money, are tax: free.
Those^ who
ship* or travel by highway, by
water, or by air, pay transporta¬
tion charges that do not include
,

anything for taxes on publiclyowned "fixed property; ; whereas
users
of railroad
transportation
pay charges from which the rail¬
road pays the taxes on its fixed
property.
•
•
.
\
The railroads' privately-owned
tax-paying facilities contribute to
..

the maintenance of

fire

of

and

other

health

schools; police,
departments and

governmental

services.

jv;\

jw-v

{^<;ij|.;.v^?;V'j;-'^'''"--'-;,::::.->JV ;*■"■"-;y..; *Vji.jp, Jt-Y.- -:;>;, •".•■

THE

Number 4400

jVolume 162

on

They also contribute, ironically
enough, to such, things as. airports*

highways and waterways,
are
used by the railroads'

the basis

COMMERCIAL & FINANCIAL

of political favors to

attract votes.

which

Finding

com¬

a

SI'l&S 1

Truly American Answer

Should Senate Defer 1W Debate?

Issues Rales on lew

Slock Transfer Rales

Special Correspondence of the CoPnmercial and

,

.

tection and the like but they pay

lis

cost in taxes.
/ ' Here in ' Pittsburgh you have
witnessed the growth
of;' river
transportation over a long period
of years.
Coal barges and other
river
boats plied the Monongahela, the Allegheny and the Ohio,
long before the federal Igovernjment spent money for river im¬
provements. Now this river trans¬
portation is an integral part of.
the industry of Pittsburgh. Data
recently made available bring to
light many interesting facts about
transportation on these and other
rivers.
.//:W.'
I ■
..On the one hand, many water¬
way 'improvements have been improvident and wasteful.
These
represent high-cost transportation;
and most of the cost' is borne by
the taxpayers and not by the users.
On .the other hand, these same
data show, that .Other, segments of
ho part of that

■

lution

due

transportation system

economical transporta¬

to

its Way, including,
tolls for the use of

pay

reasonable
waterways.

Public and Private Capital
Live Side by Side?
.

Can
W

both

the

Emergency tax which was imposed
bn stock transfers since 1932. Al¬

ring at the very time that the re¬
sults of the San Francisco Confer¬

This might

are

ence

though it reduces the burden on
low-priced
shares,
under
the

sympathetically

inspected in committee hearings,
July 16 has been suggested as
by • Governorno
longer < a the date for commencement of
floor consideration of the Bretton

-

v

bill, which has already
passed by the House and was
- approved
by the Senate
Banking and Currency Committee.
On the other hand, for reason just
Woods

today

•

own

shift

a

desire subsidies.

Is there a solution to this prob¬
Can privately-owned, tax-

shipper lie in getting all he can in
the way of subsidized transpor¬

will

enable

to compete

that
railroads
with

lie in a system
prosperous

for

It will be noted says the com¬
munication that the revised rates

tation,, through the indiscriminate
use of public funds?. Or does his
true interest

fairly and equally

highway, water and air carriers,
all paying for what they get* in
the way of public facilities, in¬
cluding a fair share of the general
tax burden?. I suggest that each

ad¬

general partnership in.
Neergaard, Miller & Co., 1 Wall
Street, New York City. Mr. Sebold
has been with the firm for some
time in the Trading Department.
mitted

to

Electromaster Common

Offered at $8 Per Share
:

Livingstone & Co., along

S. Rr
with

McDowell & Dol-

Mercier,

•phyn,- of Detroit, head a group
offering 107,923 shares of Electro'master, Inc., common stock (pair
$1) "at $8 per share to the public.
All of the stock is issued and out¬
standing at the present time and
Was purchased by the underwrit¬
ers

from

"group

Nash-Kelvinator
members of the
Brailsford & Co.;

the

Other

;Corp.

are:

Link, Gorrhan & Co.; First Securi¬
ties of Chicago; Shillinglaw, Bol-

enough of the other countries

ger & Co., all of Chicago,
White & Co. of St. Louis, Mo.

and

;

make

mention of the rate of tax

no

applicable to shares selling at $20
per share.
Obviously this omis¬
sion was inadvertent and merely
an
error in draftsmanship as the
intent of this amendment would
seem clear from an analysis of the
amended tax rate structure.
In
any

Railroad

event, under the general pro¬
of the stock transfer law

visions
a

tax is clearly

of

sale

imposed on every
within the

coming

stock

of you study that question and
purview of the law and the only
answer it in terms of your own
question raised through this omis¬
live alongside of
Government-owned and tax-free interest, your interest in low rates sion is as to the rate of tax on
for transportation, but also your shares
selling/ at' $20 per share.
highways, waterways and air¬
interest ^individually and nation¬ In view of the obvious intention
ways? This creates a challenge to
ally in sound railroads,
of the Legislature, it is our belief
every one of us Americans.
The
that the rate of 4c for each share
people of this country , in the past
Making the Most of Our
h a v e
repeatedly demonstrated
selling at $20 per share should
Transport Tools
them sense of fairness and their
lem?

Neergaard, Miller

James A. Sebold has been

^

part
cost over to the general taxpayer.
Does the true interest of the

take the form

In
,

i

been

not serving his New York Stock Exchange to move. Even after Congress com¬
he attempts to members, an apparent omission is pletes favorable action it will
still take months, in all likelihood,
of his transportation noted in the law.

system, is
interest if

prise

in¬

Jas. Sebold Partner

be harmful, if occur¬

being

to act and the new

stitutions to be set up.

and

Fund

bate they can

'

of an im¬
poverished and inadequate rail¬
road system, or it might take the
form of a railroad system kept
alive only by Government subsi¬
dies. I do not think the -American
people want either of these things
to* happen.
Most assuredly the
railroad transportation industry
,

of

under Senate rules of de¬
do a lot of talking.

Bank,

these and transfers of shares or certificates
other problems.
I think it is a bf stock," except in cases where
healthy sign When our great users Shares or certificates are sold. reported, the suggestion has been
jof transportation are giving their When shares are sold the tax is biade that the Senate debate and
Vote on the measure should be
how one cent a share where the
best efforts to insure sound trans¬
port. Under the American system,^ selling price is less than $5; 2 "postponed until later this year.
It is easy to imagine what the
cents a share where the selling
the man who pays the bill is en¬
titled -■ to ask for what he wants price is $5 or more but less than Treasury's reaction to this sug¬
and to patronize the competitor $10; 3 cents a share where the
gestion is. No other country has
who ; serves
him best:
But the selling price is $10 or more but as yet acted to ratify the Bretton
shipper who pays the bill for less than $20; 4 cents a share Woods Agreements, or even con¬
transportation, whose own busi¬ where the selling price is $20 or sidered the program in its legis¬
: >■ ,yf. -w.c
lative body. The world is waiting
ness
is.so dependent upon the more.
soundness of the American enter¬
In a
notice sent out by the for Congress to make the first

mndermines the soundness of the
railroads, the country will suffer
an
irreparable : loss.
That loss

does .not

problem.

or

materially delay Senate ap¬

proval

carefully studying

are

continue to be

might

transfer tax

new

not^ concerned

schedule, which became ef¬
fective July 1'
"..The new
law integrates
the

rate

■

public "expenditures
made in a way that

these

stock

even

legislation signed
•/ , V<
■
Dewey,
there - is
I know that the Special Com¬ '"regular" tax and an "emergency"
' '
mittee on Transportation Policy tax.
of the National Industrial Traffic
| The hew rate is fixed at 2 cents'
League, and other shipper groups, 'a; share "upon all deliveries - or

tation

,

If

numerous

ruling cover¬

the

in the Senate are
enough to defeat

Woods plan

Tax Department

611 June 27 issued a

ing

representatives in local, State and
Federal government, find a solu¬
tion; in the American way, to
America's Number One transpor¬

tion—transportation that is fully"
able

Dewey, the State

.

is to your own
selfish interest;
may put it that bluntly, with
apologies—to insist that your

if I

.

represent

be;found.

law passed

transfer tax

new

by the New York Legislature last
March and approved by Governor

I suggest that it
interest—and your

I

a

river

the

American ingenu¬
ity is equal to the task. What we
Ineed first and most of all, is an
active public demand that a so¬

.

pur

technical problem.

difficult

a

;But here again

Financial Chronicle

WASHINGTON, July 3—In determining* when to bring up on the
Senate floor the Bretton Woods legislation, Senate leaders have to
take, into consideration the possible effects that sharp debate over
the measure might have on the progress of United Nations Charter
ratification through the Senate. Hearings on the World Organization
Charter are to begin shortly.
While the opponents of the Bretton

fair schedule Revised Schedule Effective
petitors. And to add further to
the inequality, 'these
competing jof tolls and user charges for the
imany. different kinds of users of
July 1'
publicly-owned facilities, increase
the cost of fire' and police pro¬ highways, waterways and airways
I Carrying out the provisions of
How to arrive at a

,

87

CHRONICLE

,

paying; railroads

.

*

'

'•

•}

r

solve problems, once
they understand what is .involved
and are given the facts.
;■/; .
ability

to

We in the

railroad industry rec¬

ognize that highway,: water, air
andpipe line transportation, as
well
as
railroad transportation,

hard to see. perforrri essential services and are
community in America here to
stay. Viewed in a broader
there are problems like the rail¬
sense, the railroad train, the truck
roads' problem. Many of you, for
and the bus; the ship and barge,
example,
gain your livelihood the
pipe line and the airplane are
from "this great steel industry, the
all tools of transportation.
For
very
heart of Pittsburgh. You Some
jobs, one tool is better than
have seen the Government finance
any
of the others.
For others,
the
construction of new steel several of these tools may be used
mills, to augment the nation's
together, to give the shipper the.
steel capacity for War. It was nec¬
best possible service.
essary
for the Government to
What is needed is a national
build these new steel plants, just
transportation policy, which in
as it was necessary for the Gov¬
our system of competitive private
ernment to build many kinds of
enterprise will give us the. right
other facilities, including neces¬
tool for each job in transporta¬
sary highway, waterway and air
tion.
We shall not have such a
facilities.
I

This problem is not

In

every

Government, after
war, were to operate these
steel mills in competition

But

the
new

if

the

privately-owned, taxwould be great¬
ly injured, or even put out of
business. And you would also be
injured if the Government were
to sell or lease its mills to a corn/petitory for less than -their true
value. In our opinion the Ameri¬
can way is the way in which this
problem can be solved. With war
with

your

paying mills, you

.

solve our Num¬
transportation problem—

policy until we
ber One

until

we

put

of

of equality

opportunity.
No city in

America has a more
Pittsburgh in the

vital stake than

shaping of such a

transportation

Without it, you * may see
the bands of steel that link your
industries to your markets weak¬
ened by uneconomic Competition.

policy.

new

rates

prior thereto in respect

made

which delivery is not made
of

rates

tax

Bond Shares

OreiEisitas! & Lasher

Tan Cleef Partners
Van

Cleef, Jordan and Wood,

14

Street, New York City, in¬
vestment
counsellors,
announce

Wall

the

admission

William

to

of publicly-owned trans¬

am
confident that you will see
port "ways" can be made on a
sound, self-liquidating basis—not your railroads become constantly




Classes of

partnership of
Jr. and

Greenman,

B.

Group Securities,

to be effective
Mr. Greenman has
associated with the firm for
13 years and Mr. Lasher for

Halsey J. Lasher,

Inc.

July 1, 1945.
been
over

about

eight years.

Prospectus on Request

Federal Suit Withdrawn

Against Ins. Ass'n
Attorney General

Francis Bid-

June 27 that the
has dropped its anti¬

die announced on
Government
trust

suit'

against

■Underwriters

Southeastern

Association,

Underwriters and Investment

Managers

com¬

posed of * 198 stock fire insurance
In the long run, you may see both
companies:/- United Press advices
plants, it is for the Government your shipping problems and yotir from Washington stated:
shipping costs increased. And on;
to sell or lease them to private
"Mr. Biddle said the action to
industries, at adequate but fair top of that, you may be asked to dismiss the suit was taken because
help foot the heavy tax bill caused
prices. In transportation, the so¬
of a recently-passed Federal law
lution
is to charge commercial by unsound transportation invests
ments made with public capital. granting the insurance business
operators Who use publicly-owned
oartial exemption from the Sher¬
But let all forms of transporta¬
highway, waterway and air facili¬
man Act until Jan.
1, 1948."
ties taxes and tolls enough to tion be placed on an equal, selfshake the facilities self-support¬ supporting basis—and each can
then develop to the very limit of finer, faster, more economical and
ing. If this were done, future ex¬
Under more efficient — fit partners in
tensions and improvements to our its economic usefulness.
such a fair competitive policy, I future as they have been in the
system

Railroad

of

until

1, 1945, the old
apply.

after July

or

on

'

ap¬

are

plicable to all sales occurring on
and after July 1, 1945, of sales

all transport com¬

petitors on a footing

the

V; Since

*

mi

,

past for the mighty industries
Pittsburgh.

of

DISTRIBUTORS GROUP
INCORPORATED

NEW YORK 5. N.

63 WALL STREET

Y.

Sales Offices
BOSTON

CHICAGO

SAN FRANCISCO

ATLANTA

THE COMMERCIAL & FINANCIAL CHRONICLE

83

Thursday, July 5, 1945-

m

Non-Callable

$100,000

Canadian National

CANADIAN BONDS

CANADIAN SECURITIES

REPORTER'S

Railways

Dominion of Canada Guaranteed

4*f Bonds, Due 1st July, 1957
GOVERNMENT

REPORT

/

;

•

Principal and interest payable in New tork or Canada

Price to

PROVINCIAL

yield 2.50%

*

:

1

/

jurider way this week with consid¬

Woodf Gundy & Go; J

MUNICIPAL

erable gusto!

14 Wall Street, New York S
•Direct Private Wires

CANADIAN STOCKS

to

Toronto & Montreal

were

Canadian Securities
BRUCE

By

! Yet, notwithstand¬

ing'the thin fare which investors
jhave been. experiencing in the
way of corporate securities over
the last six or seven weeks,, there
was a tendency to look the field
over closely and initial operations

Incorporated

CORPORATION

What holds promise of proving
one, of the biggest quarterly pe¬
riods in the new issue market got

marked by an apparent ab¬

of any tendency

sence

MARKETS, maintained in all

to rush in

classes of Canadian external

and buy.

WILLIAMS

Monday brought to market

STOCKS

BORIS

and internal bonds.

a

The

preliminary manoeuvering before we enter the practical
total of more than $103,000,000
stages of the Bretton Woods Plan, at first glance is distinctly bewil¬ i in new offerings in the form of
dering. Through the haze, however, it is possible perhaps to discern
mortgage bonds, debentures and
the suggestion of a pattern.
....
'
,
preferred stock. The $25,000,000
First the gold price in London is raised only very slightly with
debentures, a 2%% issue of the
an accompanying statement that the change
in no way affects the
Union
Oil
Co.
of California,
went quickly, priced at 101, and
exchange value of sterling. Then^
it is suggested from London that' out, and as currency fears abated,
moved to a small premium.
volume
of
the Canadian dollar is about to be the
offerings from
But it was reported around that
Canada gradually subsided.
revalued to parity with the U. S.
Althe company's $25,000,000 of 3.75%
dollar, because of the evident un¬ bertas were slightly easier and cumulative
preferred stock was
dervaluation of the Canadian dol¬ dealings were almost at a stand¬
still available on the holiday eve.
still following indications that the
lar in relation to sterling.
That issue was priced at 100. In¬
This is followed by the British implementation of the debt re¬
stitutional investors, in some in¬
Treasury easing the restrictions funding plan might be a little
stances, were said to be showing
more * difficult
than was previ¬
on the use of sterling by holders
interest in the stock, but their
m
Central
America
and
the ously believed.Transactions in
preference was for the debentures.
Philippines, and enabling them to Montreals on the other hand in¬
Louisville & Nashville Rail¬
As
effect transactions in sterling in dicated a revival of interest.
road's $53,119,000 of first and
; he New York market.
Again it previously mentioned, there Still
refunding 2%s, series G, ap¬
appears to be scope for consider¬
r.s mentioned that the ruling has
peared to run into considerable
ho implication whatsoever as to able improvement in these issues.

A.E.AMES&CO.
INCORPORATED

TWO WALL STREET

NEW YORK 5, N. Y.

RECTOR 2-7231

NY-1-1045

CANADIAN
STOCKS
,

;

r

change rate and is in
lected

Members Torontq

Plan.

COl

CHARLES KING &

with

Vv

From

Stock Exchange

the

Woods

internal

I

intimated:

are

Sterling

(a)

Bretton

displayed
a
mixed
Although the buying of

trend.

:;ri
this, the following

all of

deductions

61 Broadway, New York 6, N. Y.

Internals

no way con-s

continued

on

a

*

(b)

and

■

of

cautious

'

a

profit-

liquidation.

Market

Union Securities Corp. and Har-

that is underwriting the ex¬

change and public offering of a
total of 150,000v shares of E. R.
Squibb & Sons $4 preferred stock
(no par).
Of the total, 51,094
shares were offered July 2 at $108
per share and accrued dividends

rather fully at

and

other

more

far-

reaching steps are taken, it would

3, and the other 98,906
shares are being offered by the
company in exchange, on a share-

be well if the vital importance of
the

sterling in the
world economy were clearly and
i'or-share basis with a cash divi¬ bluntly
defined.
The
Bretton
dend adjustment, to holders of Woods Plan can not be imple¬
outstanding $5 preferred, series mented until the sterling prob¬
A, and $4.25 preferred, series B lem is solved.
As it is such a
*reat problem, it can not be han¬
stocks.,;;
The purpose of the issue is to dled in a petty or finicky manner.
provide
additional
capital
for
Therefore, if an international
Squibb and to effect the retire¬
credit is extended to Britain

New

not

ex¬

also be offered to the public.

Series

A

and

B

shares

changed will be
Aug. 1 at $107.50.

not

ex¬

redeemed

on
>

E. R. Squibb & Sons pioneered
in extensive research in and de¬

the

amount

not

outstanding.
preferred stock

changed under the offer, which
expires July 12, will be purchased
by the underwriting group and
may

*

position

only

to

enormous

of

be

must

take

of

of

inierests of this

others to
whom
healthy
international
commerce is not only an ecoand

to

all

nomic necessity but also affords

velopment

the best means of assuring fu¬

research

cessing

large scale.
the outgrowth

on

a

The

in

such

a

ity

with regard to
matters, the multiple

ture of most Canadian external,
issues is of

no

mean

advantage.

manufactures

•.

medicinal

and

The

DENVER,

Financial

COLO.

—

Cooper Building. In the past Mr.
Newton was in business in Den¬
ver

ton

under the firm

Brokerage Co.

name

of New¬

"■




number of smaller ob¬

64 WALL

&

Company

Railroad offering of

$10,000,000

of serials to mature in 15 annual

instalments,
of

runner

may prove

larger

the fore¬

offerings

of

be opened

next Tuesday;

the

;

stock

common

York

have

been

of!

extended"

right, until the close of busi-*
July 23 next, to subscribe'

of

new common
one

new
now

stock at the rate;

share

for

each

four!

held.

*

A

banking group Is standing
by to underwrite any portion
of the 412,500 shares which remains unsubscribed

on

'
;

the clos¬

ing date. Proceeds will be used
to

retire

356,990 shares of out¬

standing convertible preferred.
Meanwhile

the

Colgate-Palm-.

olive-Peet Co. is offering to hold¬
ers of its $4.25preferred stock the.

right to exchange those shares for;
125,000 shares of new $3.50 pre¬
July 10 next. There¬

ferred until
after

bankers

will

take

portion

up

for

any

public.
:.

:

Feitit, Bausman & Go.
Formed: Consultants
;

Karl D. Pettit & Co.

announces

the formation of the partnership of
Pettit, Bausman & Co, to special-:

ize

in

engineering and

consultations

and

economic

similar

work:

done heretofore by a department
of Karl.D. Pettit & Co.
Partners "
of the hew firm

are

Kart D. Pettit,*

R. F. Bausman, A. C. Boni and D.
II. Gardener,

Mr.
Pettit, senior partner of
which the road con¬ Karl D. Pettit &
Co., will be senior
templates issuing under its trust
partner of the new firm. Mr. Baus¬
plan Series Q.
man,
associated
with
Karl
D.
C.
& O., in lively bidding,
Pettit & Co., was Vice-President

$18,135,000

its

an

issue

equipment
at

V/2s at

a

of

$1,500,000

tru"t

certifi¬

a
price of 99.754 for
cost to the company of

1.494%.

STREET, NEW YORK 5

WHitehall 3-1874

of

unexchanged
offering.

The forthcoming Pennsylvania
.

cates

Taylor, Deale

Holders

shares

has

small
proportions and absorbed
by banks for their own invest¬

of

J.

:

Most of the railroad equipment

awarded

Harry

:■.;v

••

-

;

Meanwhile Elliott & Co.'s 40,0001
of :5%
cumulative
pre-,

for

'.-v-.'V

it is
expected that competition will be
lively. This is a part of a total of

Chronicle)

Newton is engaging in an invest¬
ment business from offices in the

■

also

Pennsylvania has called for bids

Newton in Denver
to

>■

Hudson

ligations of the company and its
subsidiary units. !-;.:;!

to

Support The 7th War Loan

I

ness on

the

this type.

and toilet preparations.

(Special

for

was

reception.

New

price.
At least
said to be

-

Turning to the market for the ously been active as an individual
week, there was a renewal of floor broker,' has recently been
strength in the external section.! on war duty; Mr; Gitterman has
High grades were firm through-, been active as an individual.

,j
n£s

the'

on

of the Manufacturers Trust Co.

are

opened July
17, on $50,000,000 of first and re¬
funding series A, due 1980. The
new issue will
supplant and con¬

who has previ¬

oast

m

July holiday. ;

Bank Offers Common

se¬

ment accounts.

Mr. Rosenbaum,

"i

ferred,-$501par, - priced at $51 for:
public offering, was reported ;alL

on

Joseph L. Gitterman, Jr.; both
members of the Exchange.

toilet

Lentheric, Inc., a sub¬
sidiary, sells perfumes, cosmetics

11

trust issues which have come into
the market recently have been of

are

:

■;

r

.

shares

called for bids, to be

a

•

i..

>

<

on

change, will be formed with of¬
fices at 39 Broadway, New York
City, effective July 10th. Partners
will be Francis F. Rosenbaum and

pharmaceutical,

products.

&

•

m

j to be encountering satisfactory

mar¬

bonds

bidders
:.r

Delaware

i

nm

!

carriers

more

Rail Equipment Trusts

medicinal chemical, vitamin, and

household

the

issue.

solidate

Exchange Firm

is
of a
business established in 1858, and
company

fea¬

issue bond

mortgage

as

'

said, in dealer circles,

the

groups

■

sold and books closed.

Pacific Railway has

prospective

currency
pay

well

three

mn.

mil

...

invited bankers to submit ten¬

as

It

in

dends

ries E, naming the interest rate

should also

movement.

ii'i

'[

:

refunding

Lower-

i

of the Fourth of

dominate

$39,000,000 of new general and

should be emphasized also that
in view of the current perplex¬

ture world .peace.

of penicillin, and its
department > has devel¬
oped a deep fermentation method
for producing penicillin and has
perfected its extraction and pro¬

Saskatchewan

new

to

Rosenbaum & Gitterman, mem¬
bers of the New York Stock Ex¬

This is

post-war foreign trade.
essential in the

and

share

priced

was

ders, to be opened July

Montreals

as

summer

'

Burlington Mills Corp/s .150,; shares
of 4%
preferred,
price at $104 and accrued divl-

98^ Two compet¬ i

bid fair

Texas &
*

in sim¬

issues.

priced issues such

N. Y. Stock

play her proper part in

country

strong trend

domestic

it

..consensus

haying put out calls for bids

sympathy

Rosenbaum & Gitterman

sterling outstanding hut also of
to

ilar

belated

the

blocked

sufficient extent to enable Brit¬
ain

in

the

sufficient

care

amount

higher

eve

sizable issues.

pects, the high grade external
issues
can
m o v e
definitely

with

that

ket what with two

.

froin May

ment of all the series A and series

the

i

900

Two Railroads Asks Bids

Railroads

(,■

'

n

nun

J

Teletypi NY 1-702-3

\

,..

'

ferred, stocks brought out

coupon..1

:

/

>■

ing groups were quite close, in
.their bids, both naming the same

world-wide

Before

to. be

seemed

nevertheless it can be temporarily
repercussions, j affected
by" its traditional and
many of which might be some-:
practical relationship with ster¬
what unpleasant,
ling, especially at its present level
(c) The new measures so far and in view of the
large specula¬
adopted and the suggestions prof-, tive
position that has been built
fered are not too important in!
up on expectations of its immi¬
themselves, but they compel nent restoration to
parity with
fundamental thinking, which leads
the U. S. dollar.
to consideration of implications of:
With regard to future pros¬
car greater import.

riman Ripley & Co., Inc., head a

B stock

Bell System
i

■

marketing ; campaign,

Any change in sterling can

have

Squibb & Sons Preferred

group

Dominion Securities
6rp6ratiom
:
40 Exchange Place, New York S.N.Y^

.,

weeks some; evidence

conditions,

on

;

\The first issue sold at competi¬
tive
bidding
on - the J. current

present';..Ievel:':;-unid^T^;ckl$t^B! Although the Canadian dollar is
y• strong enough in its own right,

WHitehall 4-8980

Shares

Toronto and Montreal

was

out of the way.

fair1 scale,; there were neverthe¬
less for the first time in many

overvalued atj taking

is

bonds

prove,

„

at net New

or

Direct Private Wires to Buffalo,

but
expected to im¬
perhaps with the holiday

demand

tbe

on

York Prices.

for the moment,

resistance

Lhe future sterling and dollar ex¬

I;-;,-:

v.

Exchanges,

,

\Boughi—Sold-—Quoted

•

Stock orders executed

Montreal and Toronto Stock

!

of the Eastern Division of General

Mills, Inc., and Manager of their
New York Export Office.
Mr.;
Boni, an! economist, has been in
charge of market and economic,
research for Karl D. Pettit & Co.

Two Industrial Preferreds

Dealers reported keen investor
interest in two industrial pre-

for many years.

Mr. Gardener has.
long been associated with Karl D._

Pettit & Co,

THE COMMERCIAL &

Number, 4400

yolume 162

FINANCIAL CHRONICLE

about, and express it

Do Figures Lie?

When and How

(Continued from page 69)

consent,

, less
dumb
.governed.

and

truth,

the

confined

to

Freedom

ian definition of moral

in numbers,

science."

(not ends).
in human society, it

"To

attain

invariant

standards

arising in physiological and
biological relations. These are a
priori8 facts as against those de¬
rived by what is known as "sci¬
entific
methodology" in
which
measurement by the use of num¬
bers is introduced,
with results
that are a posteriori, that is, are
as

know something about it; but
when you cannot... . . you have
scarcely advanced to the stage of

you

means

8$
-

relations

"emotionally polarized" as are the
"human facts" of preference upon
which a tenuous hope for a "nor¬
mative" science is postulated by
Cohen.
known

Such "science" should be
for

thinking.

what

it

is,

wishful

,<

we
must be able to isolate our
contended, is there¬
As human society faces the need
factors or vary one at a time . . .
Money Not a Standard of Value
fore a development, not of evolu¬
for adjustments, to meet new con¬
When
our
analysis is throughWe see, then, that however nec¬
derived by "empirical" methods.
tion, but rather of revolution, in
ditions that are determined,
to
institutions and "mores"; Changes, going, as it generally is in physics, These scientific observations iin essary mathematics may be
chiefly, by growth of population
One or two samples are as good
not in
anything of nature (of
turn may become a priori con¬ human life in its modern social
as the end and by new and: com¬
as a million", says Dr. Morris R.
heredity or environment), but in
siderations in deriving the "facts" phase, it is not *a part of External
Cohen in his "Preface to Logic",
peting techniques as. the means2,
the changeable artifices of lan¬
of other fields by steps
which Reality—of those phenomena of
history offers few if any lessons
just published. In the social field,
nature whose consistency and de^
guage and mathematics employed
may be.said to become finally in¬
of constructive value' in organiz¬
where such controls are lacking,
at the
"social level" in dealing
tegrated in the system of prices pendability have to be translated
"statistics cannot take the place of
ing human and other physical re¬
with the unchangeable factors of
system of thought to
with which every social science into our
sources for the future.
It is sci¬
analysis, .and in fact acute social
make such thought rational andi
must deal before it can explain
nature, (the factors that cannot be
ence, with its objective search for
analysts have contributed much
the behavior of human society or so socially useful. Mathematics is
politically compromised) are in¬
more
to
our
understanding of
truth, that can make our long
volved. So it is not to destroy the
deal with the social institutions rather an essential means of de¬
social
story short and enable us to use
phenomena."
Why? Be¬
law—the "mores" or the statutes
involved, particularly with mone¬ veloping this thought system, in
cause
"we
do
not always get
foresight instead of hindsight on
of either a Caesar or of majority
tary problems which have long communicable form by a symbol¬
the path to progress.
nearer to the truth by increasing
Few his¬ rule
ism which is but an invention of
but rather to fulfill the
been so deeply imbedded at "the
torians deny these limitations on
the number of cases."
By aver¬
the human mind used in the ap¬
need for having these institutions
root of all evil" in human society.
the value of history; many openly
aging large numbers we can min¬
constitutionally grounded on the
proximations which we call meas¬
assert them. For as flight was not
imize errors of observation, but
To trace such evil through the
urements.8 To be usefully consis¬
truths of natural laws as the only
learned by men from the death of
not of method or instrumentation. intricate sequences
of valuation
tent and capable of relating all
possible assurance of peace with
The flaw in statistical averages to its logical sources in fallacy, let
Icarus, so social progress is not
our observations of nature to each
justice, that it becomes necessary
mapped by history.
(and in percentages based there¬ us recognize at once that the use other and centering them upon
to seek a comprehensive reply to
In history we find many false
of numbers as they express meas¬
on, as in the "Little Steel" formula
our
own
Pontius
Pilate's
rhetorical
(to
problems, so as finally
alternatives with no* way of dis¬
urement is universal among civil¬
or in farm price "parity" formu¬
to "price" the
elements of our
him!) query, "What Is Truth?"
tinguishing them from the true; Pilate
las) lies in the fallacy of com¬ ized men; and it is in this field,
economy
correctly, this symbol¬
was, indeed, then dealing
and we are never able to resolve
positions—-of judging the whole ultimately, that we find those ism must be articulate, that is,
with a revolution, not an evolu¬
any of these dilemmas by histor¬
by parts which are not homo¬ problems of truth and falsehood
fully interrelated by being refer¬
tion, in moral development!
ical post mortems, not even when
geneous in nature, that is, are not which lie at the root of the moral able to a
single basis of observa¬
A good way to epitomize all this
they are adorned by those statis¬
observations of individual factors issues upon which human liberty
tion for all scientific data. Such a
tical
data
which
make short in a convincing way is to point isolated to afford "thorough-going of action in a social context de¬
basis is the sense of sight for
of the analysis."
stories so long. Whether, we are out the * indispensability
There can be no sta¬ pends.
7
which all scientific instruments
literature of objective, physical
tistical escape from the necessity
pointing with pride or viewing
At this point the "great" philos¬
are "calibrated"
for reading.
science as against that of human
with alarm, there is no . rational
for factor analysis. History proves
ophers, from Plato to Poincare,
In this field of measurement,
The existing population exactly nothing, for it is the very
basis for the application of sta¬ history.
have introduced an elemental fac¬ involving valuation by numerical
tistical
experience tables or of the earth could live happily kind of scripture the devil him¬ tor of confusion by getting the
expression, a certain degree of
ever
after if every one of our
self can quote.
"There are three cart of formal logic or mathemat¬
graphs to economic problems as
precision is as essential as it is
these are applied in business en¬ history books were burned and kinds of lies: White lies, damned ical methods before the horse of
in the more primitive and less
terprise. ! In a social science, we content forgotten. But humanity lies, and statistics", surely applies that basic element External Real¬
precise field of language by way
will never learn from experience would forthwith perish in great where adequate analysis, is lack¬
ity, upon which all reasoning must of the dictionary.
If "there is
for the simple reason
that ex¬ numbers from starvation and dis¬ ing. Statistical correlations sel¬ rest.
These
philosophers
have something rotten in Denmark'*
ease
if the technical records of
dom
afford a proper basis for
perience at best has only negative
giveri an absolute supremacy to which
is
responsible for mis¬
science
were
fully
destroyed.
lessons to teach, v. ; ■ ' !,
;
analysis,
With analysis figures mentality and correlatively, a understanding, that leads to social
Great difficulty of survival would
may not lie; but without it they
As * one v capable historian has
validity
to
mathematics quite conflicts, and science is to be in¬
ensue, even though every effort
certainly do. And in either case apart from its exclusive appli¬ voked for an understanding, this
put it, - there; is no possibility of
were
made to recall the content
statistical
records
are
at. best cability to physical realities (to
scientifically t establishing > a ny
problem of accuracy, or definition,
of science. It is sciencernot pol¬
needless in social analyses.
In the exclusion of .introspective, is
conclusions from the-.trials and
directly involved. Precisely as
itics with its illusory assumption
omitting statistical treatment psychological considerations).7 Father
errors
of* society, for .the condi¬
Dempsey has said (Com¬
of kingdom and power and glory
from
social
studies,
what
Dr. Motives are psychological, not
tions of these-so-called social ex¬
mercial and Financial Chronicle,
among men, - that spells progress. Cohen calls "acute social analysis"
periments cannot* even - be^ ade¬
physical; and they are not me¬ Feb. 22, 1945), such accuracy "can
(Cf.: "The Financiali Situation," cannot, however,
omit mathe¬ chanically
quately described, let alone con¬
measureahle
as*
a reasonably be demanded of a price
C. arid F. Chronicle, June 7, 1945:
matics. This essential factor in sci¬ "force", affording a "category of
trolled and repeated for confirma¬
structure." As a dominant factor
"Neither agreements reached at
ence
is very much in need of importance" that can be related
tion as necessary.- We learn social
in this final integration or artic¬
San
Francisco
nor
mechanisms
analysis in social relations, be¬ to the definitive procedure of ulation of values in terms of num¬
results
without
learning social
there
devised will
have much
cause of its involvement in moral
enumeration via
causes;' and until science comes
physical units. bers (prices), it is to be.noted that
bearing on the course of world or ethical problems. "Like any
to rescue us from the mire of tra¬
Not desires
or
wants, but only
money is not, in any of its forms,
affairs or in the maintenance or
other science," says Dr. Cohen,
dition with its -hypocrisies, and
physical facts related to the phys¬ calibrated like a yardstick.
It
breach of world peace.")
"ethics must be rational, i. e., able ical
shibboleths that are somtimes eunecessities of life
can
be must be, therefore, a medium of;
to give reasons . .
As we have dealt with mathematically with exchange only, not a standard or
phemized as "mores", we vkeep
Mathematics and Morals
seen, these reasons cannot be de¬
right on making the same old
any meaning; and these must be
store of value; and price" is not
In social science, if objectivity rived statistically or historically,
mistakes until they take on the
so dealt with if behavior is to be
synonymous
with value.
Oscar
in justice cannot bei assured by nor yet esthetically. Rather must
aspect of an "economic law" al¬
guided by sense instead of being Wilde gave point to this distincknowledge of historical events, they originate in such reasoning
legedly proved by history—or by
Air footnotes at end of article.
(Continued on page 90)
the statistical "econometrics" neither can it be assured by sub¬ as that introduced by the Darwin¬

among

will here be

*

—

.

"The Road
sarcastically
termed "scientism"3 and which
was so objectively
(?) employed
by the late-lamented T.N.E.C. to
demonstrate
the
virtues
of
Keynesian, New Deal Deal pumppriming to create "outlets for sav¬
ings." This "scientism" has, if we
may
proceed to bring Herbert
Spencer's aphorism down to date,
become "the great political super¬
stition" of the New World Order,
to wit, belief in the "divine right"
author of

the

which

to Serfdom"

has

jective, egocentric intents or "free
will" choices.
Not the historical
event, nor yet the
tent, but rather the

subjective in¬

objective con¬
constitutes the
truth that can afford social justice
and freedom.
Parables, for ex¬
ample, are not true; but they may
reveal
truth, uproot hypocrisy,
and help put sense before senti¬
ment in guiding behavior, if they

applicable. Upon
applicability depends the
service of science; and in science
mathematics is functioning much
of experts as public planners.
as does a parable.
It is, in itself,
The so-called "laws" of social
"culture"
have
been dignified, empty and truthless; but when its
symbolism is applied, in the an¬
alas, not only by such portentous
fatalism
as
Oswald
Spengler's alyses of the sciences and in the
"The
Decline' of the West", a syntheses of the arts, mathematics
becomes the foundation of mod¬
philosophy now refurbished in the
ern progress and the critical fac¬
Russian* revival of economics as
tor in social ethics and institu¬
"historical materialism" (formerly
the
"dialectical. materialism" of
Karl

also by such an

Marx, but

truthfully

are

Social Sciences,"
which
is
directed
toward the
thoroughly misleading and false

in Biological and

'

the Offering

$53,119,000

Louisville and Nashville Railroad Company
First and
Dated

as

Refunding Mortgage 27s % Bonds,

of April 1,19^5

Series G
Due April 1, £003

■;

Interest

Payable April 1 and October 1 in New

The issue and sale of these

York City.

Bonds are subject to authorization
Commission*

by the

Interstate Commerce

Price 9872% and Accrued

Justice, and sovereignty in its
administration, rest upon consti¬

kinds, not
least of which involves mone¬

measurements

control.

tary

Bonds is made only by means of
purchase of these Bonds.

morality.

tional

the

Offering Circular. The offer of these

Circular, which should be read prior to any

truthful

that 1942
Symposium of the American As¬ tutionally rendering to the state
sociation for the Advancement of full control of standard units for
Science on "Levels of Integration the employment of numbers in

estoeric compendium as

This is not an

science,

of

tent

of

It

all

is

not

Copies of the Offering

Interest

Circular are obtainable from only such of
compliance with the securities laws

legally offer these Bonds ih

without

the undersigned as may
of the respective States.

MORGAN STANLEY & CO.

"integrative significance, indeed, that Justice
individual organ¬ is impersonated in art by a blind¬

analogy between the
levels"

ism

the

of

and

human

society.3a This
by the
in pointing out

fallacy has been indicated

present
that

writer

evolution

with

morals*,

basis

of

has nothing to

level".

so1

is,

that

behavior

As

at

well

do

with the

the "social
defined by

Darwin himself, ethical consider¬
ations are based entirely upon the

folded

holder

of the most char¬

pair of scales. "It is very inter¬
esting", said Sir Arthur Thomson.
Scottish
scientist,
"that
Clerk
Maxwell
should speak in one
sentence
of
'those
aspirations
after
accuracy
in measurement
,

THE FIRST BOSTON

CORPORATION

HARRIMAN RIPLEY & CO.

LAZARD FRERES & CO.

Incorporated

LEHMAN BROTHERS

MELLON SECURITIES

CORPORATION

.

and

justice in action,

noblest attri¬

reckon

cycle wherein motives (purposes)
are
imposed by the reproductive
necessity, with freedom of choice

men.'"
To this Lord
Kelvin has added: "When yob can
butes

among

our

in

measure

what

you

SMITH. BARNEY & CO.

which we

"short run" of the individual life




DLYTH & CO., INC.

acteristic instrument of science, a

are

speaking

July 3,19^5.

F. S.

MOSELEY
& CO.

THE COMMERCIAL & FINANCIAL CHRONICLE

90

the

assumption that facts Of phys¬

ical perception are in themselves

(Continued from page 89)
tion

by defining

cynic as "a man
price of every¬
thing and the value of nothing!"
Accuracy, however, implies in¬
accuracy as a difficulty; for the
use of numbers depends upon the

who

knows

more

a

the

less crude device

or

of im¬

posing purely artificial divisions
upon the elements of our environ¬

independent
of
our
knowing
them", an assumption which is
elemental, (Cf. discussion at foot¬
note 7, above) obviously, in all
organic response to environment,
no matter how primitive the or¬
ganism, It is not peculiarly hu¬
to have faith that "God's

man

His

in

definitely determinate and thus
objective in a unique sense in¬
applicable to realms of value or
pure mathematics." '
We do not need to define "pos¬
itivism"
of

or

fallacy

the
that

defend

in

it

order

as

to

devoid

point out

fallacy in Cohen's statement,
is, his idea that "f ealms of

value"

are

of

matter

a

mathematics"

and

"pure
have

such

as

all's right with the
a
reality as objective as "physi¬
human, how¬
cal perception". By denying that
"Units" of measurement without ever, to have difficulty With that
perception is "definitely deter¬
which numbers could not be em¬ faith because, in the "world" of
minate" he seeks to evade the ap¬
ployed with any meaning.
Ac¬ human mental processes and so¬
pearance of any assumption as to
cial institutions, the situation may
curacy, in short, is not inherent
a
distinctive reality and so to
in science; it has to be put there be far from right.
So elemental
substitute the metaphorical henand
maintained
by meticulous is such faith, however, that, as
or-egg-first—or
the
elephaht'smethods which are invariant as Dr. Cohen says, "if someone were
tail-or-trunk-or-leg argument for
they convey knowledge by way to maintain, as Poincare once sug¬
that of the horse-and-cart figure
of figures which, as approxima¬
gested, that the laws of nature
wherein the problem of prece¬
themselves
changing,
then
tions, may deviate from the units are
dence—of causation—is inescap¬
of measurement employed only we should look for the law ac¬
able. In the case of physics, how¬
by random errors and never by cording to which such change
ever, which is the one science
any progressive departure (as by takes place."
in which "our analysis is thor¬
We
should be careful, how¬
"lower and lower prices") from
ough-going," he has plainly as¬
the identity of these units. At all ever, not to mistake changes in
serted the precedence of reality
times and places every unit in¬ our thinking, due to errors or in¬
as
an
ineluctable
"assumption."
volved in every value expressible consistencies, for changes in these
Yet he as clearly recants. this by
by numbers must be the same; natural relations which are def¬
saying that "the prejudice in fa¬
and no treatment of any value initely unchanging and unchange¬
vor of reality
is based on an
system
can
reasonably
depart able; and we cannot avoid such
from such a standard if we are error unless we maintain com¬ inadequate analysis of the nature
ment.

■

These

divisions

are

the

Heaven,

world."

is quite

It

.

to

know, scientifically, the truth

about the real values in that sys¬

tem.

,

Behind

dividual
sence

unit

errors
lie

must

cases

of

in¬

the

ab¬

of/variation in the standard

or

units—the

^involved.0
ance

the

"yardsticks"—

Without such invariof numbers is

system

any

meaningless;
and that includes
prices, though this does not mean,
even when they may prove to be
reasonably accurate representa¬
tions of * values, that prices are
simple summations rather than
complex computations. Certainly
it does not mean that prices de¬
termine
tral

values.

(stable)

Even

with

symbolic
consistency
in
of numbers. It is this
"culturalistic fallacy,"10 this as¬
sumption that no such inconsis¬
tencies have materially affected
plete

every

use

social

behavior, that has charac¬

terized

the

statistical

usual

and

historical analysis of social prob¬
lems.
We
cannot study human

society

as

devoid

of

if it

were

untruths

an

and

ant hill

illusions,

—specifically, for example, the
illusion — in producing

money

aberrant behavior.

of

science"

such

Even

neu¬

Cohen

Reality"

tivists"

"liberates

ing

never

this

liberate

ancient

In resolv¬

us.

enigma,

needs to be said is that
are

what

if words

to have meaning

they cannot
universally inclusive in defini¬
tion. Things that are "real" can¬
not
also
be
"ideal," and vice
be

As

stands

to fall victim to

between that which is

and

subjective,

cluded

Aristole's

law

of

there

the

ex¬

can

as

seems

confusion of the

the

philosphers,
in making
the
Reality, It is a

eluctable

.

.

.

then
any

nature

the

plays its part as an
starting point for scien¬
In any field that
numbers and which is

or

securities. The

nor a

solicitation of offers to buy any of these

offering is made only by the Prospectus,

meaning,

employed with any1

this

element

of

constancy is in¬

eluctable.11

Standards of value.

native "mathematical field" based

esthetic

preferences
called
"value judgments" and employing
a sixth sense to produce "psychic
income."
Economics, in contrast
with other science, has, alas, re¬
on

verted

obsolete definition

the

to

of

"objective," held in the Middle
Ages by Duns Scotus, to mean the
Same as "subjective."12 In short,
Cohen

is

cashiering the diction¬

ary definition of "objective" as
"that which belongs to or pro¬
ceeds from the

from

not

object kndwn and
subject knowing."

the

The evidence of this is unmistak¬
in his

reference to

Dewey's

"Studies

in Logical Theory" (p.
where this incongruous du¬

ality in "value"—this subjective
"objectivity"—is set up as "either
ethical or economic."
Allegedly
involved
are
conflicting "ends"
requiring "ethical" choice, thus
excluding from moral problems
all considerations of objective sci¬
ence as a guide in choosing from
among competing economic means
that

directed to the

are

ob¬

same

jective physical, ends. By a mere
fiat, a petitio principii in defini¬
tion, means are called ends to be
chosen

esthetieally

(not

as

eco¬

nomical means). Since means are
said to be implied by the "end"

chosen,

judgment

only

the

in¬

.

volved is reduced to the realm of
esthetic "values," socalled.12
The truth is
facts

that only

physical

objective or definitely
determinate in that'they are not
error.
subject to any possible
"Seeing is believing"; 'sensation
does not involve any such thing as
are

fallacy, i.e.,
failure
to
apply
"pure" mathematics consistently
ito the "realms of value" which
in truth, real and

are,

not at
The facts of
"stream
into

mathematical.
not

may

so

minds"; Dr. Cohen says
they do not. But, that which keeps
the mind from being empty at
maturity which he

of

stage

when

makes

he

that

have the facts of na¬

"three Rs"

We

as

an

incident.

schooled in the

not

are

only

ele¬

ments of

$2.25 CUMULATIVE CONVERTIBLE PREFERRED STOCK
,

;V

($50 Par Value)

existence; like any other
organism we see and feel them
for ourselves, individually* begin¬
ning with our first breath and
ending with our last.
To

infinite

Prospectus

be obtained within

may

named below and

any

as

larly distribute the Prospectus within such State»

What

.

matter

of

we

have

to

in mind is wholly
of lan¬

artifices

the

guage and mathematics by virtue
of which we can "know" vicari¬

ously—that is, know through the

ntay regu¬
-

infinitesimal—the

the

or

get and keep

State from such of the Underwriters

from such of the other Underwriters

not to be is not the

or

Cause.

Final

a

A copy of the

be

question; science is not magic. It
is not revealing the nature of the

Price $50 per Share
plus accrued dividend

•

•

-

observations

T h

others.

of

knowledge of values

u s

be so¬
cialized—or communized, if you
will—by "education," once real
values have been brought within

W. E. HVTTON & CO.

realm

the

which

PAUL II. DAVIS & CO.

may

mathematics

of

in

many
„

XV

BACON, WHIPPLE & CO.

impurities—so
fallacies-r-are apt to de¬

velop.

*

so

many

?

Science, Economics, Politics

NEWHARD, COOK Sc CO*

It is what the mind

does

July 2,1945




of

chosen and

No such lan¬

straints

to

with

(the

the

real)

(the ideal)

physical sensation
is liable to err.

that

Truth is objective, not subjective.
All

footnotes

at

end of article.

as

may

maintain

seem

fixed

a

competent
relatioh

to

realities—to real values in trade.14

| The illusion of a monetary
"standard," such as gold meas¬
weight, was high-lighted
by the "sly look" of Stalin when
he told Eric Johnston that only
"capitalistic" countries are thus
obsessed; Russia has consistently
refused to accept gold, and un¬
doubtedly will continue to do so
while following the lead of Lord
Keynes in inducing this country
ured by

"stabilize"

to

exchange by

con¬

tinually playing the losing side
of a goyernmentally manipulated
gold, market in support of the
"gold standard" towards which

countries

the. "debtor"

contrive

all the "flexibility" they desire.***
Thus are our illusions exploited
for gain by serving as an "opiate
pf the people," to fool most of us
most of the time, by camouflaging
the "forced saving"10 of the bankcredit system which has been so
effectively employed in "develop¬
ing backward countries" by An¬
glo-American financing in impe¬
rialistic foreign investment. Well
has
Father
Dempsey, referring
back to the scholarship of Scholas¬
ticism, condemned Lord Keynes*
vagaries in disguising this modern •
usury with "key. words—for ex¬
ample,
profits, savings, invest¬
ments—(which)
appear
in
his
in
esoteric
senses," and
"elaborate analysis of the
course of prices and interest un¬
der such conditions (of "forced
saving" through bank-credit), as,-

works

With

would have seemed

no more wor-

•

thy of their (Scholastic) attentionthan the analysis of an economy
in which most incomes were built
up

by theft."

.

Constructive criticism of

Keynes-

ian

apologetics in the field of'
usury, however, requires a posi¬
tive, alternative theory of inter¬
est and capital value that has been
conspicuous by its absence, even
in the so-called "positive theory
of capital" evoked in opposition to
Marxian analysis by the "Austrians" of whom Hayek, the author
"The Road to Serfdom," is a
conspicuous example today. We
require a theory which dismisses1
without
trace
the
"inescapable
conclusion from
the Keynesian
analysis that interest is the vil¬
lain
of
the
piece"1?—a theory
of

which

transforms

interest

from

noire" into the "sacred"
cow" of human industrial society.
"bete

the

Such

a

theory seems essential

constructive

to

developments

political economy to fill the

in.
ur¬

gent need of the day for defeating 1
those notions which, with the soft

pedal

on

service

to

competition, give
free enterprise.10

lip-

On
this "road to serfdom" our prob¬
lem is allegedly only a matter'
of the degree of government ac¬
tivity and Control. We are given

alternative for public spend¬
ing to fill out the deficit in em¬
ployment which may obtain at
no

any time under present, unregenerate, financial practices.
No
better expression of this situation.
has been offered than in

dian

REINHOLDT & GARDNER

freely

ignoring the
validity, of guage is employed. To "fix. the
these contentions, which he has value" of money can only mean to
(under the Legal
admitted for physics, Cohen is at¬ issue money
tempting to rationalize current Tender Decisions this means any
social "science," with its imagi¬ form of money) under such re¬

ture in them

•

be

can

By

statement, is a content put there
in
infancy by a highly stereo¬
typed system of education whose

40,000

illusion"—

"standard"

a

,

Changed at will, by law. The Con¬
stitution could not, and does not,
attempt to confer any power upon
Congress
to
define
Values
or

are

conceives

NEW ISSUE

that

employs

therefore physical if the numbers

the
\

of the "money

notion

value

empty

offer for sale

real.

are

tific procedure.

nature
an

mathematical;
For social pur¬
poses we express them mathemati¬
cally.
That is why it is pecu¬
liarly human to err, not willfully,
but intellectually, in a self-deception that is easily corrupted into
superstitions that can be exploit¬
ed for personal gain.
Such is the
they

axiom

all

This advertisement is neither

Dr.

as

True values are not

tion" when it

.

"

If,

necessary implication thereof can
be no more "convenient assump¬

227)

can

in logic.?

error

cy in the field of variation,"
the element of constancy or

The difficulty seems to lie in
stating the limitations of science—
in defining that from which it

middle; for such an in¬
implication as the ex¬
istence of physical relations and
already noted,
mind transcend
entities (a round world, for ex¬
represent whichever is greater, confusion which lies at the heart ample) independent of knowledge
with caveat emptor (and caveat of what he describes as "an old or knower
(our concept of the
vendor, too) controlling each and controversy between those who world may be flat), is properly
every pricing operation, individu¬ hold that facts of value are purely not an assumption, but a fact. It
ally.
■
subjective, that is, identical with may be assumed only that exter¬
But whatever the uncertainties the mere fact that they are felt, nal, physical reality is not a fact;
involved, a background of "cer¬ and the view that there is some as a fact it is accepted, not as¬
tainty is a primal need of the real difference, as a cause or sumed. Such a basic truth, that
intellectual life", says Dr. Cohen ground for the distinction, be¬ can be seen as a "necessary as¬
in his discussion of logic.
"Sci¬ tween the valuable and the non- sumption," is not an assumption
entific procedure
He reveals this
in¬ at all; nor is its denial, that might
cannot go valuable."
on without assuming (!) that the
version of
thought and reality be called a "fundamental fallacy,"
relations we deal with prevailed when he alleges that "the funda¬ a fallacy at all (at least not in
before we discover them and are mental fallacy of positivism is the formal sense of a
paralogism),
prices

money,

represent both cost and value only
in
a
purely theoretical market
equilibrium. Otherwise they must

ity of

Cohen says, "there is no meaning
without some element of constan¬

able

objective

of

us

for it has not involved any infer¬
ential thought With the possibil¬

fallaciously cling.

logic

student

a

which

from the prison house of the ac¬
tual" to which, he says, the "posi-

versa.

"External

.

.

]

Thursday, July 5,1945

broadcast

George
the

last

McCullagh,

Toronto

"Globe

a

Cana¬

summer

publisher
and

by
of

Mail,"

when he said:
"While

private

enterprise

has

failed in the past on many occa¬

sions, and

we

have had such bad

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4400

162

dicament"

management of affairs that hun¬

ism

the

in

meaning

true

,

of

the

word, not the distorted financialism we have seen practiced in the
.

.what cannot be changed; banking
methods are what can be changed.
•We'd better soon develop the

to

dom

difference lest

the

know

wis¬

throw out the baby of human

we

the

with

liberty

post-war

bath

water for

lack, not so much of the
.courage,
as
the
understanding
necessary to undo the safety-pin
and
make
the
changes needed,
Further development of the the¬

.

ory
of interest and investment
presented last December in the
/'Chronicle," will demonstrate, I
i think,
that under the definitions
of science here presented as ap-

plied to modern problems in valu¬
ation and cost accounting where

.

I

his

"Foundations

true:

/'capital" is involved, sticking to
that make truth

by
I

Thomas

doubt a reality completely
the mind which conceived

"Beyond
of

it, sees or feels it, is an impossibility."
Cf.

8.

and Experience," in
Monthly," January, 1945.
"Science," July 11, 1941:

"Geometry

the

"Scientific

Newsom, in

"Many persons, even scientists, have de¬
veloped a certain awe of mathematics. For
them it may be surprising to read Bridg-

projects only, and do not included
structiori
contracts
awarded
in
announcements of
general con¬
man's statement:
'It is the merest truism,
struction or expansion programs. 1938, 191 ) or 1940.
evident/at
once
to
unsophisticated ob¬
The
Dodge file of post-war
The Dodge executive declared
servation* that mathematics is a human
invention'."
that the information was obtained projects contains a preponderance
9.
public projects, Mr. Holden
Among
mathematicians
who have in continous surveys from more of
turned
to
social
science,
none
has been
He further said:
than a million individuals, com¬ pointed out.
more
notable
than
Vilfredo' Pareto, who
"Delays in construction revival
panies, institutions, and Govern¬
escaped the illusion of value in money to
will definitely not be due to any
ask:
"Underneath the actual prices on the
ment agencies/ and represents the
dearth of plans. If only a mod¬
exchanges,
prices
varying
according to cumulative and
unduplicated re¬
the

time and place and de¬
infinite number of cir¬
nothing which has
or
is in any degree less

exigencies, of

pendent

upon

an

there

is

cumstances,

constancy

any

variable?

the

is

This

litical economy must

State,"

11.

po¬

Good

F. S. C. Northrop, Yale
Department of philosophy, In

April,

Cf.

the

of

Prof.

by

University,

"Ethics,"

that

problem

solve."

Criterion

"The

Cf.

10.

1942.

.

of Invariables,"

Study

"Science;

Commander Oliver -Scott Reading,
"The Am. Scientist," Jan., 1944.

by

Lt.

in

/these principles

12.

Webster's

See

International

New

into science can turn the trick of

Dictionary,

dismissing
faulty theories
and
cultivating the science of living

13. As against a realistic epistemological
dualism, Cohen is employing what amounts
to
an
idealistic
epistemological monism;
essentially that of Berkeley, despite his
(Cohen's) admission of external reality in

unabridged,

ed.,

2nd

'1679.

p.

*

together and working together in
competition, in the same world, at

,

The nidus of a valid social sci4

J

lies, not in the causes of war,
but in the causes of peace.
If we

ence
'

'

hope to become the "salt of the
V

earth"

shall have to neutralize

we

*

acid

the

of

competition with the
alkali of science. Only good sense
lean pave the way to good will in
.

j

human society.

;

1. This paper outlines what Seems to the
the logic of science in social devel¬

1

writer

opment,

analysis

an

provoked

by

Fathef

pempsey's remark" ("Commercial and Fi/
nancial Chronicle/'
Feb./22,. 1945)
that
..."

*

-be

a

natural interest rate (could

"5%

contractual justice"

rigid

of

matter

never)

between individuals, on which there is
agreement, but which he says follows from
: his
idea
that
analysis of the physical
/processes of human existence > "cannot
i yield
a numerical natural interest rate,"
as

,

which

to

as

there

may

misunder-

be some

standing.
No physical processes are numerical; but in analysis they have to be so
stated as a matter of "science."

*

*

*

"Value and Capital,"
before the horse, as so
well indicated by Father Dempsey, when
he alleges that the Industrial Revolution
has
been
"induced
by
the unparalleled
Hicks, in
the cart

2.

*

puts

»

*

"

*

Here is an apt ex-

complete inability of the
historical method
to distinguish between
cause and effect—between means and ends.
3. See "Scientism and the Study of Sothe

of

ample;

•

Economica,

in

ciety"

IX,

Vols.

XI

X,

'43, *44) by F, Hayek.
Fr. Wellof Marquette University traces "scientism" back to the days of the School(1942,

xnuth

,

'

"The Nature and Origin of Sci¬
Marquette Press, 1944.
3a. Note the implicit acceptance of this
delusion of historical grandeur4 as the basis
\ of, "reason and.truth" in"The Symbol of
-

entism."

of Raymond Fosdick's
Review for 1944 of The Rockefeller Foun¬
dation.
It is vital to realize the cogent
refutation of the Fosdick idea, that (p. 13)
History"

8

p.

on

intellectual

their

life

as

well

as

in

physical life, nations and groups are
cells in an organism," which has

their

*■■4

*-■just
f

been offered by Dr. Alex> Novikoff of
Brooklyn College in a paper '(in Science,
2, 1945, p. 209-215) on "The Con¬
cept of Integrative Levels and Biology" in
which it is pointed out (p. 214) that "a
fiharp separation of the two levels—bio¬
logical and social—must precede a fruitful

March

.

*

.

*

of

discussion
*

man's

how

society

be

can

free and democratic."
Lbrd Acton's
famous postscript, to his letter of protest,

kept

against Bishop Creighton's doctrine of Di¬
Right, was significantly "directed to

vine
*

persons about to
careful review of

,

write history—don't!"

A

the philosophy of history

is

presented in "The Jour, of Phil.," vol.
XXXIX, p. 35, Jan. 15, 1942.
4.
"Commercial and Financial Chroni¬
14,

Dec.

cle,"

1944,

5. The dictionary

A Theory of Interest.
example of this fallacy

highly apropos:
"If my money bought
more goods
I should be better off; therefore,-we should all benefit if prices were
lower." Compare this with Philip Cortney's
4dea,
Offered
in
"The
Chronicle"
for
is

1

"

'

February

-

3,. that

"the best means to dis-

tribute income and
lower

*

by

t

*„

wealth-is by lower and

prices";, or with the notion, set forth

Alexander

Hamilton

that 'coining

of

mills..(.1 cent) would yield lower and lower
the poor!
Compare
notion that to dic¬
tate low profits and wages and prices is
to control inflation; or. with the New Deal
idea that to limit production by statute,
as
by short hoinjis Or by killing pigs, to
keep prices up is to control deflation!

-prices and so benefit
it also with the OPA
,

*

6.

too

It

Is

often

to

be noted

that this

is hot

the

of a priori. But
"reason can produce material conclusions
only if it starts with; material premises,"
says Cohen
in .noting
the "extreme fe-

accepted

usage

'

action"

Hegelian

to

the

"excesses

absolutism."

philosophy should be
"solipsism" of today
usage

of

Their

Kantian

and

introspective

identified with
against
which

the
the

here employed is directed as a tacit

protest.
7.

believing."
measured

An

fied

by the

who

conoeived

chines

In

of

the

"egocentric




pre¬

be

seen

can

philisophy
of

Lord

of
as

man

Maeaulay

pleasure-ma¬

a

Machlavelli he said:
"The great
principle, that societies and
laws
exist
only for the purpose of in¬
creasing, the sum (sic!) of private happi¬
ness,
is
not
recognized
with
sufficient
clearness."
deservedly this has diawft
sharp Criticism from Prof. L. J. Henderson
criticizing

of

Harvard.

of

Man,"

Irt

article

an

"Science,"

on'

"The

Study

4, 1941) he
asks:
"How can the sum of private hap¬
piness be measured?
Assuredly hot with
any instruments or any procedures that
were
at the disposal of Maeaulay.
Is it
not evident that Macauiay's 'great princi¬
ple' and his 'purpose' of the existence of
societies are both expressions of his senti¬
ments, ana that 'the sum of private hap
piness' is, in the sense of the logic of
modern
science," a meaningless phrase?"
14.

E.

W.

Lester

by

(Foreword

by

Prof
1939,

Press,

1817 Ricardo took Adam Smith

"In

task

Experiments'/

Princeton

Kemmerer),

29.

to

July

"Monetary

Richard

Prof.

p.

(in

See

'his own
principle
in
his
argument
on
colonial
currency'
by not
simply
'ascribing
the
depreciation of that paper to its too great
,for

abundance.'

Benjamin

/

.

follow

on

,

the

with

advantages

non-metallic

or

nineteenth

the

agreed

Ricardo also

.

Franklin

in

to

failing

economical

an

Early

of

money

Ricardo

century

wrote:J'•■ '■
"

'The introduction of the

for

the

be

of money

purpose

considered

steps

and

precious metals
with truth

most

be

as

govern¬

regulations, and supplies of
and manpower permit.
The remaining- 66,534 projects,

public, in the

securing $55,959,000 bonds
in the hands of the
public or pledged.
Prior to the
first and

outstanding

the

of

sale

secured

G

series

of

of civilized life;

by a first

lien on about
junior

853 miles of road and by a

lien

on

about 3,666 miles of

that/with the advancement

of

that

would

it

them

banish
to

Donor of Dew Edition

estimated cost of $7,993,-

constitute a backlog of
specific: contemplated
projects,
many of. which will progress to
design stage as rapidly as arch¬
itects
and >• engineers
can
find
enough draftsmen to expand their
currently • limited
planning ac¬
tivity, the ; Dodge executive de¬

Bonds Offered at

Morgan Stanley & Co.,

/

"The dollar volume of design-

is

118%

contract

greater than the 1939
volume, 93 % greater than

the 1940 volume/and 14% greater
than
the
maximum
peacetime
contract

1928."

volume

established

in

-

..

Privately owned projects in the
design stage number 22,795, With
estimated total value of $2,-

an

609,675,000

he

indicated,

saying

that

this

is

than

the

volume of private

considerably greater
con-

award

Louisville
and

stage work, exclusive of the back¬
log
of additional
contemplated
projects, is 143% greater than the
37-state contract volume for 1938,

the

won

&

of

on

July 2

$53,119,000

Nashville

RR.

first

refunding

mortgage bonds,
G, due April 1, 2003 on a
bid of 97.669% for2%s. The only

"Full

.

98%

Series

competing bid was from a group
by Halsey, Stuart & Co.,

headed

Inc. which bid

100 people attended

party on the after¬
noon of June 28th, in the garden,
of Arthur Wiesenberger's home at
241 East 48th Street, New York

the

A nationwide group headed by

clared.

significance of these fig¬
ures
on
contemplated construc¬
tion ■ projects realized by compar¬
ing
them
with
the
contract
records of peacetime years," Mr.
Holden said, adding;

More than

Louisville & Nashville

cocktail

City.

The occasion was the cele¬
the appearance of the

bration of

1945 edition of "Investment Com¬

panies," written and published by
Mr.
Wiesenberger of the New
York
Stock Exchange
firm of
Arthur Wiesenberger & Company.
Members of the press were

97.1399% for 2%s.

This announcement is not an

be

from

the

employment

to

offer of securities for sale or a

solicitation of an offer to buy securities.
July 2, 1945

New Issues

during a less enlightened period,
they had been so advantageously applied.'
From 'Proposals for an Economical and Se¬
Which,

Collected Works of
See also Prof. Anatol
Paradox of a Metal
Standard"; also remarks of. Hon.. Fred L.
Crawford on coinage in Congressional Rec¬
ord, Vol. 86
(1940), Appendix, p.
1088,
Currency,'

cure

Ricardo,

in

404."

p.

Murad's

book,

"The

Union Oil Company

of California

"Blundering with Gold."
If

gold

value

and/or
"relics

are

silver
"standards" of
barbarism," the idea

of

brand fiew "scarecrow"
devised by Lord Keynes!
The good Lord
is not
the only
and Original thinker on
monetary matters.
;
V'•1 /■
15. It is authoritatively revealed that the
Orange Free State is about to release, from
newly prospected mines, a new flood of
British
gold
upon
our
gold-brick-buying
certainly

is not

Treasury

for

Kentucky.
16.

that

to

transfer
term

Anderson

"indeed,

saving

investment

in * such

is

a

elaborately

criticism

when

often

.

his

in

.

lup

of

recent poll by Dr.

the

Opinion,

the

interviewed

American

reporters
to

tell

George Gal¬
Institute of Public

asked

in

'I;•"

PHceS !

/%./;'

101% for the Debentures

an

sharp

analysis in the; next
relation of
Savings to In¬
starting on same page).
v
17. Quoted by Father Dempsey from "In¬
terest
and
Usury in a New Light," by
Somerville, in The Economic Jdurnai, Dec.,
1931.
■
a

::

The proc¬

.

of Keynesian

"In

I.'

precedes

through

situation,
detailed

'

he

vestment,"

18.

their

the

$100

per

plus accrued interest and

share for the Preferred Shares

accrued dividends, respectively, to the date of delivery

Copies of the prospectus may be obtainedfrom the undersigned (one of the underwriters
therein) only by persons to whom the undersigned may legally offer these
securities under applicable securities laws.

persons

own

words

what

they understood by the term 'free
enterprise.' As free enterprise is one of-the
important

elements in American Capital¬
ism,
the
outcome of
this
poll
is
both
interesting and depressing. The great ma¬
jority were unable to give a correct defi¬
nition.
any

Only three out of ten persons had
idea as to its meaning."
From

clear

Chas.

Eoonomic

J.

Series A

Without Par Value

of

("The

page

250,000 $3.75 Cumulative Preferred Shares,

understood

be

refers

expansion of bank credit.
ess

bowels

the

in "The Commercial and
Chronicle," Jan. 25, 1945, p. 404,

Benjamin

says:

to

should

which,

Financial

Dr.

$25,000,000 23/4% Debentures, due June 1, 1970

a

•

this

By

Brand,

System

for America,"

Washington, D.

C.,

by

1945.

.in¬

vited to meet and get acquainted
authorization by the
Interstate Commerce Commission, with some of the heads of, the
investment trusts, among
the bonds were offered July 3 at large
981/2%
and accrued interest to whom were Francis F. Randolph,
Chairman of the Board of the. Triyield about 2.93% to maturity.
Continental group of companies;
Proceeds from the sale, together
with other funds to be provided S. L. Sholley, President of Key¬
Custodian
Funds,
Inc.;.
by the company, will be used to stone
retire or redeem $24,654,000 first Ernest Henderson, President,, and
Robert Moore, Vice-President, of
and
refunding
mortgage
3%%
bonds, series E, due April 1, 2003 Sheraton Corporation; Dorsey
Richardson of Lehman Corpora¬
and $28,465,000 extended unified
mortgage 4% bonds, series B, due tion; Kenneth S. Gason, President,
and Herbert R. Anderson, Execu¬
Jan. 1, 1960.
.The present financing will ma¬ tive Vice-President, of Distribu¬
terially improve the lien position tors Group, Inc., and Leon Abbett,
of the first and refunding mort- Vice-President and Treasurer of
'gage bonds/After giving effect to Lord, Abbett & Co., Inc.

Subject

science,
we
discover
another improvement to

again

j

064,000,

and

knowledge

road

in

com¬

but it

is not less true

the

bonds

refunding mortgage was

Cocktail Party

materials

an

in the hands of the

opinion of the company's General
Counsel, will be secured by a first
lien on approximately 2,884 miles
of road and, in addition,
by a
direct lien on approximately 1,635
miles of road subject to the liens,
in so far as they attach, of mort¬

subject to the liens, in so far as
constitute as large a demand as they attached, of mortgages se-s
the industry can take care of in curing $87,556,000 bonds outstand-i
the transition period. The real re¬ ing in the hands of the public on
vival bottlenecks are government pledged.
regulations, material and man¬
power
shortages, and confused
price trends, with the added po¬
tentiality of transportation shorK
ages."
.

ment

with

com¬

gages

monthfs, these, added to the
great reservoir of planned private
projects, urgent small projects as
yet
unplanned,
and
deferred
maintenance
and
repairs,
will

toward

advanced

rapidly

as

the

important

improvement

the

the arts

will

of

$106,700,000/ first and refunding
mortgage bonds to be outstanding

18

jobs, estimated to cost $7,752,138,000, have progressed to the design
stage. It is these projects, he said,
execution

satisfaction

public build¬
ing and engineering projects that
have been planned are ready to
go ahead within the next 12 to

staff over a
While 99,638
projects are listed, the number of
buildings involved is much great¬
er,
for
many
projects involve
more
than
one
structure,
Mr.
Holden said. Analysis of the in¬
dividual
project reports shows,
Mr.
Holden
stated
that
33,104

which

the

pany's unified mortgage, its Mo¬
Montgomery Ry. mortgage
and The Newport & Cincinnati
Bridge Co, mortgage (which will
be paid, or payment for which
Will be provided, prior to, or con¬
temporaneously with the issuance
and sale of series G bonds), the
bile &

may

the

of

one

towards

merce

"What

example

cannot

What
and.

expressed in .numbers
only, by translating it into terms of visible
phenomena.'. This bars a social science-of
the current hedonistic mien which "is typL

in

men,

"in

is

erate fraction of the

of his field
three-year period.
ports

(For

phenomena.

•be

his

population."

in

; rise

definition of
terms see. Rune's. Dictionary of Philosophy,
p. '93'.') ,This type of evidence of truth is
sharply excluded under the rules of evi¬
dence
in
court
testimony, where "seeing
physical

peace.

.

S.

Holden, President of F. W. Dodge Corporation, re¬
ported on June 26 that his organization's field staff by the end
of May had spotted 99,638 specific construction projects contem¬
plated for post-war execution in the 37 states east of the Rocky
Mountains.
The combined value of all p 'ojects is $15,746,202,000
it is stated Mr. Holden emphasized that the listings included specific

should also be reversed to be

independent

to

Contemplated, Dodge Corp. Deports

of poinScience" (p.

of

the sale of the series G bonds and

Fosi-War Construction Projects

think,

read,

therefore

(human);

am

the

is

I

sum";
should

Again, there is the dictum

in

care

philosophers
ergo

This

am.

209), which

.

Competition and capitalism are

v

I

inversion,
'think.

the

"cogito,

therefore

Also

of capitalism.

,name

of

Cartesian

stood alongside luxury, I don't
think the remedy is to abandon
all that is good to get 'rid of some
evils.
I would, On the contrary,
"be bold enough to defend capital¬

ger

91!

Dillon/Read & Co. Inc.

named

THE COMMERCIAL & FINANCIAL CHRONICLE

92

is the fact that its

(Continued from first page)

epoch

that
than

has
one

done

away

age-worn

with

institu¬

inch

thickness

nearly

supports

200

pounds, and more when al¬
loyed. Gold is reducible to leaves

located mostly in out-of-the-way
regions.; Nor is gold produced as

aged gold standard, and then early
in 1934 turned back to the auto¬

mand

Gold Fallacies
more

anything "intrinsic" about gold it
supply and de¬
have
a
tendency toward
stability which is unique. The de¬
mand for gold seems pretty con¬
stant, being essentially a demand
for monetary hoards and
reserves,
determined largely by the excess
of imports or exports on interna¬

Thursday, July 5, 1945

silver

matic

is

in

part, namely, as a
cheap by-product in the mining of
other metals.
(b) Current gold
production fluctuates up and down

according to the profit it brings.
Yet, it leaves us with the
In a boom, when commodity prices
ancient practice of hoarding gold of
1/280,000 inch thickness.
A
and wages
are
high, while the
as the
basis of, and the interna¬ grain of it can be made to cover
tional accounts.
And monetary price
of gold in national cur¬
tional key to, the monetary stand¬ a surface of 80 square inches, or
gold is the one commodity the rencies remains fixed, gold pro¬
ard underlying all economic valu¬ stretched into 500 feet of wire at
supply of which is not subject to duction declines and only highations.
Why don't we shake off 1/20,000
inch
thickness.
Gold
great fluctuations, because the an¬ grade ores are exploited.
In a
this relic, as it Were, of antiquated chlorides are used for glass stain¬
nual production never amounts to depression, when prices and wages
customs, that seems to have lost ing, pottery and enamel painting,
as much as four, per cent of the
are low, gold production rises and
all justification?
coloring of artificial gems and
total supply.
What other stands low-grade ores come under ex¬
Surely, the fact that gold has especially for photography, to say ard commodity can claim that its ploitation.
Briefly, the new out¬
nothing of the use of gold in
been in monetary use for more
carry-over from year to year is put tends to adjust itself to the
Gold re¬
than 2,000 years and was produced jewelry and dentistry.
always at least twenty-five times price level.
sists chemical reaction better than
as early as under the fourth Egyp¬
as big as the annual increment of
III.
Briefly, new
tian dynasty (around 2900 B. C.), almost any other metal.
production?
Obviously, a
So far, so good.
But all we have
it is a useful metal that has a
is no reason for continuing the
commodity with such compara¬ established is.
merely that gold
value without regard to monetary
hoarding practice in which mantively stable and practically fore¬ would do what it
does, and is bet¬
kind indulges.
Take the case of functions, and its industrial use seeable supply-conditions is not
ter fitted for that than platinum
i silver.
Until
the
early 1870's would be far more widespread if likely to generate violent
price- or silver, or even diamonds,- to
the monetary demand would not
; silver was in far wider use as cur¬
gyrations.
say nothing of perishable goods*
rency and treasure than gold.
It make it too expensive.
7. That there is too little gold. Gold has all the qualities needed.
was
demonetized
almost
over3. That gold is a commodity like
From time to time, geologists and It is not too rare and not too
; night,
and ever since, silver has any other. The implication is that economists
threaten with a gold plentiful.
The output of gold
been leading a ghost existence as all its worth is due to its industrial
scarcity, on which they blame mines varies, but the total vol¬
a monetary metal, having ceased
use.
In view of the fact that more
great
depressions
like
in
the ume of gold changes slowly.
The
.to be the currency base practically than 9/10 of the newly mined gold
1870's and 1930's.
But each time, cost of producing it is substantial
everywhere. It would vanish from goes into monetary channels, the
gold production takes an unex¬ enough but not prohibitive. Gold
the
scene
altogether, except as fallacy should be obvious.
It is
pected upturn, making all gloomy is hard enough to last, and not too
small change, were it not for U. S. like saying that corn has no use
forecasts look silly.
Indeed, there hard to be indivisible. It is per¬
subsidies.
other than to be turned into al¬
is supposedly gold in the crust fectly fitted for
coinage and for
■
;■
But with a fascinating tenacity, cohol..
of
the
earth
for
another sixty hoarding.
4. That the value of gold is in¬
gold holds on to its unique posi¬
That brings up the gold stand¬
years at the pre-war rate of pro¬
tion among commodities—to the
dependent of supply and demand duction, and we have not
yet ard. Admitting that gold is gold—
position of the sole money-metal, and is determined solely by gov¬ prospected more than a fraction what good does the
gold standard
International medium of exchange, ernment fiat.
Of course, Congress of the
potential sources.' Besides, do? There the real confusion be¬
and world-wide financial treasure, can change the dollar price of an
on the basis of a given gold re¬
gins.
Whatever we think of it,
coveted
and
hoarded
by every onuce of gold as it did when it
serve, a country may print more we know at least what we mean
government and central bank and raised it from $20.67 to $35.00. or less bank
notes, expand more by the word "gold".
But "gold
Iby millions of individuals—by But did it determine the value of or less bank-credit.
In
has
other standard"
diverse
connota¬
everyone who can lay hands on it.
gold thereby, and not rather the words, there is no mechanically tions to different people and at
value of the dollar in terms of fixed ratio
binding the monetary different times.
'
H/ v
•' !
gold?
What the devaluation did volume to the size of the gold re¬
In
the
classical
or
automa¬
Fantastic
conceptions
are
in was to make gold expensive from serve.
We have it in our hands tic
gold standard, gold
is the
circulation about gold and find the point of view of those who
(by intelligent management) to base
only.
The
bulk
of
the
credence, time and again. The owned dollars, and to make dol¬ stretch our gold reserve or to
keep "money" consists of bank notes
following elementary fallacies lars cheaper for those who owned it under control
according to our and checks drawn on bank de¬
about gold are more current than gold or foreign money.
In other monetary needs.
posits.
Whether legal tender or
any, others:
words, Congress has no power
8. That there is too much gold— not, it is strictly convertible into
vk That gold is predestined by beyond the States: it can raise the
that is what some people worry gold.
The central bank stands
"nature" to fulfill the monetary price of gold only by lowering the
about, that gold might share the ready at all times to buy and sell
function.
This
pseudo-religious price of the dollar on the foreign fate of silver that had to be de¬
gold—against its own paper—at
; belief
in the alleged God-given exchange markets. And its power monetized because of the
The maintenance
possibil¬ a fixed price.
role of a metal is plain nonsense. within the country is effective
ity of producing it in disorderly of convertibility at a fixed rate
So :isj its more modern variant: only as long as commodity prices
quantities or at very low cost. (gold bar) is the essential feature,
that mankind is sold on it by some adjust
themselves
to the new About this
alleged threat of a gold which has very significant con¬
kind of tacit convention, or bound price of gold.
inflation, two things should be re¬ sequences.
It compels the mone¬
to it by unshakable tradition.
5. That the value of gold is in¬ membered.
(a) Gold ores are be¬ tary authorities to provide suf¬
2. That gold is not a commodity, trinsically stable.
The value of ing prospected, assayed, developed, ficient gold reserves so as to meet
has no "natural" usefulness. Gold gold is nothing but its purchasing mined,
crushed,
processed
and any demand for gold that might
is a metal with unusually, fine power—its ability to buy things.
transported at substantial cost—at arise—liquidity
pressure,
which
technical qualities.
Its beautiful It is as stable as is the general the expense of painstaking labor, means that the financial commun¬
coloring remains untarnished on price level, or as unstable. There tons of heavy equipment, loads of ity has to be ready for any drain
exposure, its high specific gravity, is no such thing as a permanent steel and other materials.
Only of gold. It cannot go too far in en¬
I its readiness to alloy with most
stability of gold's purchasing about 10% of the current produc¬ gaging itself by incurring shortmetals, its extreme tenacity and power unless all prices would be tion is
term liabilities without risking the
being washed (dredged)
;
malleability, its ductility, put it in kept artifically fixed all over the
danger that those liabilities are
out Of river-beds, which also is
the top rank among the metals. Its world.
claimed and gold is withdrawn.
6. That the value of gold is in¬ costly, while the rest has to be
tenacity is equal to 7 tons.per
Stripped of all technicalities,
square inch; a gold wire of 1/10
trinsically unstable.
If there is wrung from the depth of rocks the
gist of'-the* automatic gold
standard is this:. Every kind of
money
is somehow convertible
into- gold,- with
the consequent
This announcement is not to be construed as an
necessity to keep the issue of bank
offer to sell or as an offer to buy the securities herein mentioned.
tion.

standard; changing
only
secondary features, until in 1941
we turned once more to "manage¬

*

ment."

What

did

we

months

prior

for

fixed dollar-

to abandon the

was

six

about

February," 1934,

to

price of gold, not gold itself.
paid in that period more
dollars

We
and

for

the
gold we
proved, if any¬
thing, a growing appreciation of
gold). Instead of a fixed gold par,
we
instituted
a
variable
gold
price.
The dollar was still "on
gold", but not any more in a set
more

bought ' (which

,

ratio to it.

normal.

There
about

,

.

■

notes

and the

expansion of bank
within limits, i.e., in a
reasonable proportion to the gold
reserve.
Gold thereby becomes a

offering is made only by the prospectus.

deposits
NEW ISSUE

vital factor in the credit structure.

40,000 Shares

$50 Par Value

share

That is the kind of gold stand¬
we have had
in this country

plus accrued dividends

ard

until the spring of 1933, when we
went "off

m

states

in

which the

be obtained from the undersigned only •
undersigned, is qualified to act ds a dealer'
may

in securities and in which the
prospectus may

F. Eberstadt
July 3,1947




legally be distributed.

&

Co.

-

•

mysterious
between

an

managed

a

pected to be, changed. :

Both are
gold", but the advantage of¬
by the former consists in
international stability, which helps
foreign trade, and in internal re¬
straint
against
over-expansion,
"on

fered

.

which may be more or less effec¬

tive, depending on the policies
pursued. The managed type per¬
mits

a

greater freedom of

credit

expansion—at the risk of causing
a
correspondingly more serious
aftermath—and upsets the normal
course of international trade. Take
your

choice.
.

Gold

is

IV.

;•

just

basic

as

to

the

managed variety as to the oldfashioned type. The Bank of Eng¬

land, e.g., had in the days of con¬
servative monetary policy a gold
reserve
of never more than 600
million dollars, usually much less.
By 1938, after seven years alleged¬
ly "off the gold standard", the Old
Lady of Threadneedle Street ac¬

cumulated a
600 millions.

"off", the

reserve

The

she

some

she

$2,wa3

gold she hoarded.

more

Of course,

of

more

was

(sitting)

"on"

all that time.
To be

ard

really off the gold stands

means

of two

one

combination of both.

a

own

change

or

is left to drift and "find

currency

its

things,

Either the

level", in the foreign
market—the

case

ex¬

of

a

"run-away

inflation," in which
European countries indulged after
the last war, as South Americans
did
before, China and Greece

since. Or it is held nominally at
par, "but by the'

subterfuge- device
of;,'cancellfrig dr;;free^ihg;;jaU- for-"
eign claims, stopping the outflow
of capital,
confiscating the foreign
assets held at home, etc.,
shortly by
keeping tight: behind the barbed-

wire

fences: of

regulations.

strict

exchange

The Soviets have in¬

expansion and credit con¬ troduced this
technique of financ¬
traction are deeply influenced by
ial control and carried it out
with
the flow of gold in and out of the
ruthless logic.
In either case, the
country. Note that the circulation
monetary system is more or less,
of gold coins inside the country
but almost never
100%, divorced
is not essential to this system.
A from
gold.
gold standard can be "automatic"
The Germans, when
caught in
without
converting bank
notes
the great crisis of
1931, developed
into gold at home, provided that
the most complicated and most
they are convertible abroad (gold
vicious of all managements. Boiled
exchange
standard):
All
that
down to its bare
essentials, their
matters is the stability of the fore¬
method amounted to
being "off
ign exchanges at a given gold par
They broke up
and the consequent necessity of gold" both ways.
their monetary system into
many
holding proper gold reserves.

5% Cumulative Preferred Stock

Copies- of the prospectus

and

Credit

Elliott Company

Price $51 per

noihing

difference

gold
standard.
In
the
one,
the
currency unit bears a fixed rela¬
tion to a quantity of gold; in the
other, the ratio can be, and is ex¬

..

The

is

the

automatic

*

•

es¬

even though at a
newly fixed par. In other words,
we changed our
monetary meas¬
urements, and back we went to

.

'

an

was

automatic type

•

.

That that

capade only, is proven by the fact
that we completed the devaluation
by promptly
returning
to
the

i

j

Did

gold",

or so we

thought.

stop converting our money
Not at all: we did not
stop for a single day selling" gold
against dollars (abroad) if asked
to
do so.
Did we stop buying
gold?
Not at all: at all business
we

into gold?

hours the New York Federal Re¬

the

ready
to pay "cash" against gold offered
to it.
We never went off gold,
truthfully,
but
for
some
six
months we changed over from an
automatic gold standard to" a "man¬
serve

or

Treasury

was

kinds of mark.

Some^ the smaller
part, were kept stable by being
kept out of the international mar¬
ket; these marks remained equiv¬
alent to gold, but only in
appear¬
ance/since they could neither be
sold nor bought abroad.
The rest
of the marks was left to~
depreci-.
.

ate

The

to

extent or
completely.
resulting chaos in Germany's
some

external relations

ful in

was

very

bringing about the

help¬

1939

ca¬

tastrophe.
'

,

V.

Some countries clamor at times

v

Such confusion of
words should not disturb us. The
fact is that even in countries with
it.

left

depreciating or frozen currencies
the governments never refuse to
buy gold.
Their trouble is that
they can't get it because as a rule
no one wants to own their incon¬
vertible

it.,

1,

1

•'

i

«

if he

currency

help

can

1

.

V

.v

.

■■■•;...

Exchange
Weekly Firm Changes
The New York Stock Exchange

has

announced

the

following

weekly firm changes:
Transfer of the Exchange mem¬
bership of William J. Granberry
to

Joseph Rosenfeld will be

con¬

sidered by the Exchange on

July

12th.

It

that

understood

is

Mr.

July 12th.

Mr. Prescott will con¬

claims; (b) to maintain their ex¬
change stability by selling gold.if
and when that stability is threat¬

tinue

partner of Prescott &

ened; (c) to keep a reserve for
emergencies in a form which is
marketable everywhere and at all
times; (d) to use it as a semito

credit pol¬

of internal

icies; and (e) as a means to main¬
tain financial confidence at home
and

They need the yel¬

abroad.

low metal whether on

or-off, and
whatever kind of monetary policy

they choose to adopt.

policies with regard
to
gold depend on the funda¬
mental position of each individual
country/
Those with plenty of
gold and with good prospects to
maintain their gold reserves with¬
out

much strain

too

are

inclined

toward the automatic gold stand¬

ard, which promotes their foreign
trade and their foreign invest¬
ments—and

they

creditor

are

international accounts,

having

no

gold or being in the process of
losing what they have and fearing
financial strain, prefer the greater
freedom which the managed gold
standard provides
(unless a
Stronger country comes to their
financial rescue).
All countries,
with one single exception, which
are
off gold try to get back as
soon as their conditions permitted.
The one exception may be Soviet

indi¬

an

as

Strauss

Max

late

of
Edward

to

P. Prescott will be considered

a

as

on

Co.. Cleveland.
Transfer of the Exchange mem¬

bership

Milton

of

Wasserman to

Mortimer W, Loewi
sidered

will

con¬

Mr. Loewi
floor

individual

an

as

be

will

July 12th.

on

act

broker.

'

;

•

£s

F

i

V

"-♦ v^Jii'f "Vi >':'' ".V

V '? v*Y *

c

i^vVfok*

^>Ur/

*',?:' .?*^^

^

r,,!t^7^

to act
the

alternate

as

Exchange

Brinton

H.

Benjamin

Brinton

of

withdrawn

the floor of

on

for

Co.

&

was

July 3rd.
William R. Taylor, general part¬
W.

in

ner

on

E.

Burnet

limited

a

&

Co., will

effec¬

partner

tive

ited

partner, will become
eral partner.

Illinois Eire Sky La®

although

Barrett, under

stock

The

that

out

established

and

tions."

essential

no

corpora¬

Secretary

pointed

safeguard

against fraud in the sale of secur¬
had

ities

been

forfeited

in

pro¬

viding these additional and more
facilities.

flexible

The

principal

amendment

definition

the

broadens

of

"ex¬

tered dealer

ceased

James

of

the

late

W.

Sparks,

&

H.

Co.

or

broker of any out¬

Interest of the late A. Lawrence

Peirson, limited partner in Goodbody & Co., ceased as of June 27th.
Interest

Nadel,
Mabon

of

an

&

the

the

manual

is

or

furnished

to

Secretary of State.
Hereto¬
a resale has been lim¬

fore such

ited to securities which were

of June 20th.

as

orig¬

inally issued as exempt securities
had been qualified in Illinois.
This closed the over-the-counter

or

Rudolph market,to a large number of issues
of quality and long outstanding.

late

Exchange member, in
Co., ceased as of May

various

problems,—such

as

the

for

a

Curb

sale
of treasury
corporation is not

ment

.

ities

J.

were

,

effective June 30th.

in

Individuals

Exchange.
Other Depart¬
personnel, including Paul V.
"These amendments will open deemed to come within this re¬ Deames, Chief Examiner, ( joined
in the conferences and, after the
These
and
additional
the
facilities
of
the
over-the- striction.
final
drafting, the amendments
counter market to Illinois owners provisions are said by representa¬
were presented to the Legislature
of a large number of outstanding tives of the investment banking
by William Vicars, former legisla¬
securities
which have been re¬ business to be entirely practicable
stricted as to marketability in the while retaining adequate protec¬ tor, and now with the Depart¬
ment.
The legislation was, passed
past," Mr. Barrett stated.
"Too, tion to the public.
Another
amendment
extends without opposition and signed by
they will encourage 'small busi¬
Governor Green June 28th, ; ....
:
ness'
enterprise, and
will also the exemption given to securities.
In discussing the application of
on
eliminate
certain
technicalities listed
designated stock exwhich heretofore have prevented changes
to
include
additional the new amendments, Mr. Barrett
"The Department believes
the sale in Illinois of many, well amounts of securities issued by said,
seasoned
securities,
issued
by a corporation! when approved for' that the primary objective of The
of State Edward J.

whom the Act is administered.

nership in De Haven & Townsend,
Crouter & Bodine, Philadelphia,
Interest

Co.

the selection of John W. Cannon,
effective July 1 will t
Danville, to report on the! pro¬
benefit investors, issuers of securities and business interests generally
posal to include the New York
in Illinois, according to Secretary'*>

standing security acquired in the
ordinary and usual course of busi¬
ness, about which information is
available in a recognized secur¬

Wynn

&

chosen for the purpose of making
special investigation and inquiry

Amendments to the Illinois Securities Act,

lim¬

John H. Wood retired from part¬

O'Gara

| into

Representatives of the Investment Banking Industry.

empted transactions" in securities,
to include the resale by a regis¬

same

a

and Blodget, Inc., and
Henry
MacFarlane, partner of Alfred

D.

State Secretary, Says It Will Benefit AH Interests.
Describes the Amendments Which Were Passed After Conferences With

gen¬

July 5th.
As of the
date, Richard P. Windisch,

93

Edward J. Barrett,

'sound

•/

Privilege of Francis T, Whelan

Those with unbalanced

countries.

act

of the membership

Transfer

the

become

Peace-time

will

vidual floor broker.

control the

and

gauge

soundness

by

device

of

sort

Hfe-'-t K>*''a«V r*/» k,'i Y.i# V "j >% **

Praises Changes m

Rosenfeld

which

>

1

ster

New York Stock

is every nation of. the
bargaining and bickering
for gold?
The answer is that they
need it.
They need it (a) as a
means
to
pay
excess
balances
abroad if they have no offsetting
Why

world

mechanical

»'V. k,V *W\Vll>Jf

V'

f HE COMMERCIAL & FINANCIAL CHRONICLE

they

that

insist

off,

really

never

L

.

Number 4400

.Volume 162
$re

w

listing upon issuance. In the past
a corporation was required to go
through all r. the formalities
of
qualifying an additional amount
for sale in Illinois, even though
its outstanding stock, identical in
nature, was exempt because of
being listed on a designated, stock
exchange.
This amendment also

Illinois

Securities

Law

will

not

be hampered by affording Illinois

investors, investment bankers and
business in general, an access to
broader

securities

it

and

diversified

more

markets.

On

the.

con¬

expected thatmore
interest will be developed in in¬
vestment fields worthy of con¬
(
adds
the
New York
Curb Ex¬ sideration in preference to ♦ those
change to the list of stock ex¬ of extremely hazardous character.
changes recognized for this pur-. It is regarded as especially im¬
pose..
'
•
I portant at this time to encourage
The amendment of most interest the small business enterprise, and
trary,

is

■

to

increase

to avoid undue obstruction to the

$10,000 to $25,000 the amount

orderly flow of private capital,
through supervised channels, into
justifiable business ventures."

business

small

from

will

of

capital which can be raised by
a proposed corporation in Illinois
without going through the legal
requirements of registration with
the Securities Department.
Poyntelle Downing, Decatur at¬

torney, appointed by Mr, Barrett
early this year as head of the
Securities
Department, began a

—■—mm*<•

-—

i

'

,

t ■

f

Slair

Drganizalicn
Opens Boston Branch.

;

BOSTON, MASS.—Blair & Co.,
Inc., and Blair Securities Corpora¬
tion, are opening an office at. 50

under the new series of conferences with repre¬
transaction
must sentatives of the investment bank¬
Wasserman & Co. dissolved, ef¬ meet a number of requirements ing industry soon after his ap¬ State Street, under the manage¬
fective June 30th.
to
determine
what ment of John K. Norwood. ; Mr.
designed to protect the investor. pointment,
The dealer
or
broker must be changes in the Illinois Securities Norwood will conduct a Govern¬
ment
bond
business throughout
registered in Illinois and in good Act might be necessary and de¬
To Form Herman,
New England for Blair Securities
standing, the price at which the sirable under present conditions,
security is bought or sold must The industry was represented by Corporation and will represent
Russia' because of her desire to Hampton Co.
a
committee
which
included Blair & Co., Inc., in the distribu¬
(Special, to The Financial Chronicle)
be reasonably related to the cur¬
carry out the collectivism experi¬
Arthur G. Davis, Field Secretary tion of Municipal and. Corporate!
SALINAS, CALIF. — Herman, rent market price, the informa¬
ment
undisturbed
by the gold
The
tion available must include a bal¬ of the Investment .Bankers Asso¬ securities in the territory.
flow and the automatic restraints Hampton & Co. is being formed
George. F, Noyes, Vice principal office of - each of the
with offices in the Salinas Na¬ ance sheet and a three year in¬ ciation,
it imposes upon internal policies.
companies is in New York and
tional Bank Building to engage in come statement, the sale must not President of The Illinois Com¬
'
'
'«•%*
■'!'
"
branches are maintained in other
■
the securities business.
Partners be for the direct or indirect bene-r pany, Robert G. Mead, assistant
vi...,;::;..y
fit of, the. issuer of the security, Vice President of Stone & Web¬ large cities.
Jules
D.
Herman,
general
No doubt, gold would lose much are
of its value if it would lose its partner, and Cyril L. Vertin, spe¬
'

*

.

'

To

be

exempt

provisions,

■

•

a

;

1

■

<

•

.

24th.

-

,

function.
No doubt,
either, that there is a; theoretical
possibility of that.: Just as an in¬
dividual state. can substitute' its

monetary

gold

paper

for

world

state

at

could

home,

so

metal

tive

Union, the signature of which
would be acceptable and would
have to be accepted everywhere.

'

Dreamers wait for Unions,
fools
At

try to create

times,

both

and create

an

find

a

confusion for

a

while.

now the latest attempts
world control are crumbling,

for

Right
the

dreams

of

a

and

super-state

are

being reduced to the modest pro¬

of

portions

an

international

al¬

liance.

important to
understand why gold production
and gold hoarding never cease.
That background is

The basic .fact is that there

N.

Baker

Y.

is

is

no

This announcement appears as a matter

—

William

NEW ISSUE

Vice-President

Joseph C. Baecher, Secretary
H. Baker & Co., Inc., 11
Niagara Street. John H. Baker is
of John

president

Treasurer

and

firm.

as

the

South

in

tario

150,000 Shares

the

1"''

lus which

the

of

new

African

discoveries in
Rand

as

well

4% Preferred Stock

the mining districts of On¬
emanate affects the entire

Par Value $100 per

market.

Share

However, other factors are more
important to explain the boom.
Gold stocks were depressed by the
artificial stoppage or reduction of

production
have to

that

during

recover

labor

available

and

the *war

Price $104 per

and

with the prospect
materials will be

costs

but

soon

will

the

Share

plus accrued dividends from July 2,1945

again.
True, their
higher, than before,
appreciation of
notice of the discussion about the: mining stocks indicates that the
future of - gold.: As. a., matter .of market expects a revaluation of
fact, in times when "the gold gold at the mints. In other words,
standard is under fire, gold pros¬ the old rule that rising commodity
pecting flourishes and/gold shares prices depress gold mining profits
boom. The/marketplace expresses applies only so long as the official
its confidence in gold with no re¬ price of gold remains fixed.
Pres¬
gard to the theoretizing of aca¬ ently, the general expectation is
that it will not be kept-stable,
demicians tod /cranks.
The preseven
■> ent boom in-gold shares has, how¬
though three proposals in
ever, its particular features.
In Congress to raise the gold price
been
voted
down
all experience,t gold mining stocks have
lately;
tend
to
decline as
commodity Rightly or wrongly, there is little
prices rise, as mentioned before. doubt in the minds of the capital¬
Their present virulence is illogical istic community that the credit

earth that could elimin¬
Indeed, production and
hoarding never even seem to take
power on
ate gold.

or as an

and

and

Imperium.
following

of record only and is under no circumstances to be construed as an offering
offer to buy, or as a solicitation of an offer to buy, any
of such securities. The offering is made only by the Prospectus-

/:

Baker Officers
BUFFALO,
Watson

.

Wals-

of these securities for sale,

a

.

Mr. Herman previ¬

ously was connected with
ton, Hoffman & Goodwin.

the

eliminate

altogether.
All it
takes is a World State, be it a
universal Imperium or an effec¬
money

cial partner.

,

be

current

...

'

y

.

;

In reality, it has

good reasons, ef which the fact of
great new gold discoveries is only
one.
Primarily,-this should affect
only the new mines, the shares of
which profit most.. - But the stimu-

BIyth & Co., Inc.
.




of all other

.belligerent

curren¬

The First Boston
~

Corporation

Wertheim & Co.
July 3,1945.

-

Goldman, Sachs & Co.

Merrill Lynch, Pierce, Fenner & Beane

■

Eastman, Diflon & Co.

Coriipany

Incorporated

devaluation of the dollar as-well
cies will follow,.

R. S. Dickson &

.

inflation will continuer that com¬
modity prices will, be much high¬
er; and that sooner or later a new
as

only

Kidder, Peabody & Co.

...

in appearance.

Copies of the Prospectus may be obtained -within' any State from the undersigned
.; ' by peisons to whom the undersigned may regularly distribute
the Prospectus in such State.

Harriman Ripley & Co.
Incorporated

Union Securities Corporation

.

.

,

Thursday, July 5,1945

THE COMMERCIAL & FINANCIAL CHRONICLE

the

And Bretton Woods
Williams thesis.

John II. Williams Quoted

or

isn't

that

me

it

way

can

as

any

last

problem

war—the

.

.

.

:

to

Senate

dollar loan,

a

as

they

generous

gift to the British,

or

not without their counterparts

among

active supporters of Bret-

ton Woods

suggest

helping Britain. Because

defense

in Washington.. These

of the

Bretton

Woods Fund.

On

the contrary,

expenditures
on
The witness did

of

cess

a

a

they argue, that the
pre-requisite to the suc¬
solution of the sterling-

dollar problem,
./■•,•./•.,>-v,, v:
One exponent of this view from

his

ringside vantage point de¬
would be enough to help the Brit-' scribes the problem of the British
ish
out
of
their
dilemma, he pound as threefold. In the order
answered in the negative. And he of importance the three phases of
recommended that we "subsidize the problem are: (1) the long run;
Britain."
(2) the transition period; (3) the
Still
another
recent
witness, so-called blocked sterling bal¬
ances
built up during the war.
Dr. B. H. Beckhart—economist of
the Chase National Bank of New That exponent, being much more
York and
Columbia
University optimistic than the views pub¬
professor — recommended aid to lished in the "Chronicle" last Feb¬
Asked whether

imports;

the

a

$3 billion loan

British, provided

a

that

event,

United

the

"should lend

States

or as a

The

offer

to

exchanges.

become

relation.

the blocked

find

buy

need

offers

a

our

He there¬

permanent

For the solution of

sterling balances he

unblock, over a 50period
in" equal *' annual
amounts,, an .additional $4 billions
worth of sterling.
/With $8 billions of the $16 bil¬
,

-

.

any

as an

of such securities«

:

offering is made only by the Prospectus.

New Issue

the British at

greatly

inflated prices and that much
the

expenditure

for

was

of

defense

of those very countries.

To sup¬

port this reasoning, it is pointed
out
that
wholesale
commodity
price indexes in India are now

triple their pre-war level.
lar

index

1944

were
ZVz times their pre¬
level in Egypt and Palestine,

war

and

than

more

Iraq.

To

the

five

reinforce

British

paid

times

the

in
for

case

high prices
exchange rates

—while, sterling

•

concerned

re¬

artificially high—because

it wanted to be fair and not drive

Mercier, McDowell & Dolphyn

Link, Gorman & Co., Inc.

Shillinglaw, Bolger & Co., Inc.

White & Company

Newburger & Hano
July 2,1945
SfraraiiiOTiTOBi




dollar obligation. And they should

be met in

a

manner

by such direct

that will not

compel a
thing
is certain; the aggregate adverse
measures

balance that Britain would

during the

ate

toler-j

period

transition

is not likely to be as large as $5
billion." .//■.■;.y '\
/.
.

The Broader

Sterling Problem

;

"Britain's

long-range problem
is primarily that of attaining a
in

balance

its

of

one

interna^

current

,

tional accounts.

It

is secondarily

restoring its international
-

1

*

*

"Britain's loss of

income

from

investments, the possible deteri¬
oration in its position as seller of

shipping

and other services, to¬
gether with the probability of Jess
• terms,
of
trade
(tho
prices of British import goods

benefiting

relative

fense

from

efforts.

In
owned

the
.*

,

British

de¬
-

.

•

unblocking
the
foreignsterling balances in 50 an¬

nual instalments the British under

this

plan would

pay

no

^interest,

the theory being that no interest
cost was involved in the first in¬

stance

in

created.

sterling balances

were

the

,

between $1- billion and $2 billions 3
to pay for the same quan¬
tity of imports that it had before
year,,

the
is

balance

of

pay¬

ments

out of its present chronic
'•fundamental disequilibrium" the
author of the plan also suggests
that/Britain should be given by
this country a gift or an interest^
free loan of $2
billions, repay¬
20 or 25 years.

to

of

be

4%

calculated
per

at

the

This

annum.

sterling's transition
But other steps would be

ease,

Transition Period

is

not

"Obviously, during that period
Britain
deficit

will
on

be

as

continue

current

little

to

run

account.
as

of

will need an even larger volume

imports and a correspondingly
larger volume of exports.
trade

is

the

volume

world

is .very
solve
its: balance

of
payments
except through direct
controls., In a world with a small

problem,

of trade Britain

volume
be

able

to

pay

imports without

will

not

for its necessary
a

sharp

very

duction in the terms

on

re¬

which its

exports are sold. Britain has an
inelastic demand for imports. The
world

has;

a

mand

for

British

world

with

relatively elastic de¬
exports.

In

a

$80 billion of trade,
hope to find greatly

Britain can
enlarged markets for its exports
without any sharp reduction in
the terms of trade. It should be
noted

that

this doubling in the
value of world trade in¬

money

an

increase of only 60% in

volume of world trade.

factor

The

in

such an in¬
in world trade would be a

crease

high level of employment and im¬
ports in.the United States which
would

undoubtedly

affect

busi¬

ness

conditions in the Latin Amer¬

ican

Republics and other countries
we are large buyers.

from whom

a

Everything Depends

This

billion,
$4 billion

is not

tion/period, In the fourth year
should balance its inter¬

ance of

national

basis of free and stable

Britain

accounts, but we should
out the possibility that

five years will be needed for at¬

"If the

Large

a

volume of world trade

increased, Britain has only

slim

change of solving its bal¬
payments problem on the?

exchanges.

With $80 billions of trade

a

small

adjustment in the sterling ex¬
change rate might have a large

taining balance.
"In general, this transition defi¬

effect

cit would be financed

exports.

follows:

on

World Trade

$2.5

as

of

enormously increased, it
unlikely that Britain will

it may be as much as
for an arbitrary three-year transi¬

not'; rule

income, it

of

principal

possible to speak of

if Britain

course,

raise its level

volves

5-Year

And, of

war.

to

"Unless

British

over

,

to the prices of British!
export/goods) all will .require!
Britain to. increase its exports
pver the 1938 level by something

;:/'•//,'

The above-described suggestion
for handling the balances blocked

"It

First Securities Co. of Chicago

as

most

favorable

Britain's needs during the transi¬
tion period in great detail.

Brailsford & Co.

as

•

in

for

are

hard bargain with the countries
concerned- even though they were
a

A

Livingstone & Co.

sure,

needs ■ should
be
many operations
suitable, but defi¬
nitely not in the form of a large

the

with the countries
mained

would

as are

the
that
the Fund dur-'

semi-cancellation, -it is said that capital position,

may

S. R.

"England's

the

be obtained from such of the undersigned
registered dealers in securities in this State.

feel

England would use
ing the transition only in-limited
amount and only with great hesi¬
tation./
/- /
: ;

Simi¬

numbers at' the end of

necessary.

may

I

balance in its accounts. One

cancel

formant said:

Copies of the Prospectus

why

services to

period.

$8.00 Per Share

is

British themselves have said,

remaining
$8
billions, on the
grounds that the blocked sterling
represents the sale of goods and

to;

Discussing Britain's needs dur¬
ing the transition period, our in¬

Price

That

,

interest

($1 Par Value)

aid

Bank; ojr
from the
Fund.
England has a horror of
dollar debts; and an obligation to
the Fund, while it is to &n. anony¬
mous
creditor,, is
nevertheless
fundamentally a dollar obligation.

of accounts cannot be established

rate

Common Stock

financial

seek

in the fourth year, Britain-would
retain her exchange controls and

countries

Such a
loan would be the equivalent of
a
gift of half the amount, were

Electromaster, Inc.

will

from the Export-Import
for that matter, even

the

creditor

able

107,923 Shares

if Britain

bank*:

or

I am very doubtful

unduly burden Britain/financially
lions so to be accounted for, the or politically.
In. the event that
plan calls for agreement with the equilibrium |n Britain's balance

touches, as stated, only
the least pressing
of Britain's
triple monetary problem. To set
sterling again on its feet and to

offering of these

commercial

a

ing character.

as

in Britain

plan.

extent of

cared

year

gold and dol¬

lars, ■■ and the remainder would
probably be met out of shortterm credits,
to a considerable

undertake to

the blocked

and

must

circumstances to he construed
an

will

nia

trade

disagreement with

solicitation of

business

Britain's reserves of

tion referred to is that the British

get
no

does

working balances of" $4 billions
(sterling) in London, the sugges¬

creating
the ; rupees,
rials, dinars, and the Palestinian
and Egyptian pounds on which

poor

witnesses

for

fore rejects the thesis that Britan¬

is to be restored."

these

the

within the system of multilateral

its assistance in the

of the post-war British
exchange problem, which is cru¬
cial and must be solved, if the
multilateral system of payments

While

idea that

British cannot solve the problem
of
their
balance
of
payments

In

solution

themselves in

rejects the

ruary,

successful

trade conference- is held first.

.

for sale

committee, insofar

Fund is

similar

somewhat

This advertisement is not, and is under

a

above-quoted witnesses before the

not, however, spell out just how
this
can
be
done
practically.

the first question to
ask the British is; Do you really
mean that? If it means, as I think
it must, a great growth of Ameri¬
can exports, do you really want
us to go forth making large in-

Not

„

DeVegh, another witness
the
Senate
committee,

Britain's behalf.

now,

securities

British.;; It will there¬
fore be unnecessary to repeat that
story here.
•
0{>■.
-V: /.
The
views
expressed by the

those

v."

They say that,

"

lions to the

part of the defense burden of
the
Empire, DeVegh suggested
that the U. S. undertake some of

again. They like to make it
appear that the solution of this
problem is really simple, if the
creditor nation will only do its
duty and
invest
its
surplus
,

be solved by a single low-interest
long-term loan or grant of $5 bil-

a

over

.

Britain

portant problem of sterling's star
bility in terms of the dollar can

the British have to bear so large

They left their
surpluses abroad as additional in¬
vestment. They ask us to do that,
I have heard the British dele¬
gates go through this over and

.

;

Washingtonians not only do not
agree with Williams that settle¬
ment of the dollar-sterling rate
is pre-essential to the setting up

made

tions for

the 10th Century.

,

the

current in New York that the. im-r

solve the British

can

we

coun¬

balances

and assum¬
ing that—at least, in five or ten
years—the countries with which

reported a rather
view of, the ,theory

pessimistic

these

owning

repayment, in part, over a
period of half a century.« Assum¬
ing that the blocked sterling will
total the equivalent of $16 billions

writer

are

before

and the other way is for us

"Well,

As

this

relate to the effects of

Imrie

because they did it a good deal in

abroad.

View of

ton Woods Fund.

they
always
stress
two
points: "One is that we must have
high employment here because

to invest abroad.

it can¬
stable

tries
their

at the end of the war,

problem, Williams thinks there
will remain no real difficulty and
he would then assent to the Bret-

help,

;

If

.

.

Here she is,

our

Woods

,

had after the
reparations prob¬

expand

late

pound-dollar rate.
Pessimistic

India, the

being largely as a result of
Britain's large expenditures for
its
overseas
military establish¬
ments and their upkeep. Britain,
it is suggested, should make ar¬

In the "Chronicle" of February

and we shouldn't want her to be,

state
that when the British ask us for

would

program, merely because
not
of
itself, promise a

15

the transition period that I regard
as a continuation of the war, but
I think
that is not politically
practicable, I would do the near¬
est thing possible to it.
England
cannot
afford to be burdened,

lem, for example, said Williams,
"Now, here is our principal part¬
ner
in
the
multilateral-trade,

that

Bretton

to

into

Sterling Problem

matter of fact, I favor extension
of lend-lease to the problem for

we

.

possibly terms.

the

debt"

"war

in rangements with the several

upon

will not at this

shelve

sees

the lpwest

on

expand its ex¬

free exchange world.

date

Britain

Near East, and other areas—came

Washington. But the Ad¬

ministration

A

Williams

frowned

entirely

official

a

conceivable"—

and she is in this shape.
Dr. Williams went on

loan,

nothing this coun¬
try can do "except to offer Eng¬
land a credit of $3 billions or so

ports enough. This problem, Eng¬
land's problem, is just as difficult
'

...

I

incurring further debt until in

some

The blocked sterling balances-

that."

$2 billions a year.
,
/ If
nothing is done to solve that
deficit, he continued, Britain will
have fhe very difficult choice of
either tightening her belt—"and
to

and, of course,
in the form of exports?"
Williams added that the problem
was
for us to make the invest¬

he, for one, cannot solve; that
"nobody has ever been able to do

Egypt, "and be quite right in do¬
ing so." In addition to that, Dr.
Williams told the Senators, Britain
will surely have a large post-war
deficit on current account, vari¬
ously estimated at from $1.2 to
i

Disposing of the Blocked Sterling

lem in
sterling.
Nor are their
suggestions of a large gift to the
British, perhaps disguised as a

vestments abroad

get the
export trade, a problem which
Williams is frank enough to say

M.P., and other British officials,
that by the end of the war the
blocked sterling balances will to¬
tal $16 billions, although Williams
thought that the British may be
able to cut this down by negotia¬
tion with countries like India and

they

similarly alone when they recog¬
great prob¬

ments and the British to

agreed with the
estimate of Mr. Robert Boothby,
Williams

Dr.

when

nize the existence of a

(Continued from page 67) '

itself will be futile. Other
witnesses tended to support the

gram

Administration

suggest
that
the
International
Monetary Fund is premature until
sterling is stabilized, they are not

The British Problem

on

the

volume

With

$40

of

British'

billion

in

world

At least one-half would go into
additional sterling balances (to be

trade, even a large cut in
sterling might have only a minor

handled like the wartime blocked

effect

sterling), about one-fourth would
be
financed
by drawing down

exports.

Under the

with

small

on

a

the

volume

of

British

circumstances,

volume

of-world

trade

THE COMMERCIAL &

Number 4400

162

Volume

Britain will of necessity
resort to bilateral clear¬

have to

arrangements, a large element
of government
participation in
international trade, and complete
"exchange control.* I believe, nev¬
ertheless, that sterling would be
maintained at its present level,
since little or nothing, could be
gained. from a reduction in the
.sterling exchange rate under such
ing

tain

on

the

average

Britain do this to get

should

lew Ruling on
SEG Holds That Concerns

rid

Debs, and Preferred Shares

Competitive Bidding

Of Union Oil Offered

retained to give finan-<^
to a corporation on competitive bidding. According to
sale of new securities, will be no a special dispatch from San Fran¬
cisco to the New York "Worldlonger permitted to participate in
the public bidding for such issue Telegram" on June 29, the Cali¬
of securities, since "such financial fornia Railroad Commission's ef¬
advisers may have an unfair ad¬ forts to survey opinions on com¬

had been

sterling debt which costs less
than 1% to carry?
of

ably clear that Britain can' restore
the balance in its international
"accounts
only through interna¬
tional
co-operation ■ that estab¬

rial

a

to

well

is

"It

;
"Taking all of these factors into
.account it would seem reason¬

remember

that

British foreign investment always
involved in large measure a stim¬
ulus to Briiiish foreign trade.
If
Britain were to dispose of its for¬

international
monetary policy based on stabil¬
ity, order, and freedom of ex¬
change transactions, supplement¬
ed
by domestic policies in all
countries for maintaining high
levels of employment and for low¬
a

holds

Furnishing Financial Advice on a New Issue
Cannot Participate in Bidding.
California Railroad Commission Wants
a Survey of Opinions on Whole Question of Competitive Bidding.
Britain might have to capitalize
The Securities and Exchange Commission in Philadelphia on
them on a 6 or 7% basis.
Why July 2, issued a new ruling that an investment banking house, which

circumstances.

lishes

still

yield a higher return, based on
the price that could be realized
for them, than the securities and
investments already disposed of.
To sell the remaining investments

9?

FINANCIAL CHRONICLE

common

advice

vantage over other bidders be¬
cause of earlier and closer asso¬
ciation with the transaction."

eign investments it would lose im-,
portant connections and profitable
export trade,? Britain's problem is

Associated
dispatch, the SEC made its ing California utilities.

According to an
Press

petitive bidding on new securities
has developed opposition to the
Securities and Exchange Commis¬
sion's ruling from a score of lead¬

*

A

nation

banking

-

1

investment

wide

headed by Dillon,
publicly

group

Read & Co., Inc., offered

July 2 $25,000,000 of 2%% deben¬
tures due June 1,1970, and 250,000
$3.75 cumulative preferred shares,
of Union Oil Co.
of
California.
The debentures

series A, no par,

were

priced at 101, and the pre¬

ferred stock at $100 per

share.

The combined offering of se¬

curities

represents

one

of

the

largest financing operations un¬
dertaken by a major oil company
in recent.years.

Net proceeds
Oil Co.

will be applied by

of California in
commission has part to the redemption on or about
bids, Aug. 15,. 1945, of $25,600,000 of
approved Western Light & Tele¬
investments.
but invited representatives of the
company's 3% debentures, due
"One lasjt pbint might be men-: phone Company's merger into the
Kansas Power Company. Western utilities to a hearing in an effort
Aug. 1, 1959, and to the prepay¬
tioned;
Britain is going into a
Light & Telephone Company, Inc., to determine future policy. Should ment on or about July 10, 1945, of
very uncertain^ period as to its do¬
the surviving company, will issue the
commission
decide
against $12,000,000 of promissory notes
ering
barriers
to international mestic econop™> The demand for $6,200,000 of first mortgage bonds, SEC's demand for competitive
held by four banks.
high levels of Employment will be
trade. The only practical alterna¬
which are to be sold under com¬ bidding,
the,; "World-Telegram"
The remainder of the net pro¬
tive for Britain is direct control insistent ip Britain and they will
states, the stand may be the start¬
petitive bidding.
be met. The sterling balances will
ceeds, amounting to $10,738,000,
of the balance of payments.
It is stated, however, that Har¬ ing point of a nation-wide cam¬
offer a market abroad in those
will be added to the company's
"No doubt, the fact that ex¬
ris, Hall & Co., who were engaged paign to rescind the SEC order.
periods in which home demand
general funds to partially reim¬
as financial advisers in the trans¬
pansion of Britain's production,
Attorneys for Pacific
Gas & burse it for capital expenditures
falls off.
It is impossible to say
•exports,
and
consumption re¬ now how much pressure Britain action, will be allowed to enter Electric Co., in opposition to the
and to provide funds for convert¬
the
bidding because announce¬ SEC policy, cited the results of the
quires a corresponding expansion
will actually put on the holders
ing to post-war operations, includ¬
of imports increases the difficulty
ment of the new policy comes so
March sale of
refunding .bonds
of sterling balances to liquidate
ing modernization and expansion
•of her building a large favorable
late in the proceedings.
which the Supreme Court forced
them at times convenient to Bri¬
of certain, refinery, transportation,
•balance of payments. On the other
"We-cannot in the future per¬
into competitive bidding, support¬
tain by the purchase of British
marketing and distributing facili¬
mit a banking firm to be retained
.hand, it is true that the world's
In that case Blyth & ties.
■:
•'
'
•:' t
goods. To Britain the export of or render financial advice or as¬ ing SEC.
-demand for British goods is ex¬
Co. dissolved its syndicate after
goods for sterling balances merely
Of the $12,000,000 of bank loans
tremely elastic and that many of
sistance for a fee in connection a
fortnight during which less than
involves a shift of its debt from
which the company proposes to
Britain's most important exports
with the sale of securities and also
half of the issue was sold at the
foreign holders of sterling to do¬
(shipping, banking,'insurance, and mestic holders of sterling, and to participate in the bidding for initial price. The remaining bonds repay out of the proceeds of the
•other services) require almost no
the same securities," the SEC an¬ later were sold below the offering present financing, approximately
this would be an ideal way of
•raw materials.
Clearly, in a world
nouncement added, v
$9,600,000 was used in acquiring
price.
taking up any cyclical, slack in
•of greatly increased trade Britain
from American Power & Light Co.
There appears to be growing
Pacific Gas contended that this
employment."
.can develop
a favorable balance
dissatisfaction in different circles showed negotiated bids with an in December, 1944, the oil proper¬
While the above-quoted sugges¬
ties, gasoline absorption plant, re¬
of payments.
It could do that
regarding the whole question of investment banking group was
tions are those of an American,
-even in the 1920's, when British
finery and other facilities for¬
the best means of marketing se¬
very much the same views have
merly owned by Glacier Produc¬
-exports were especially hard hit
Among companies tak¬
been advocated in England, not-, tional period may prove longer curities.
tion Co. in Montana,
\ :
•by the over-valuation of sterling.
ably in the writings of Dr. Paul even than the three to five years ing a similar stand were Southern
"The present $12-billion debt in
;
Einzig in the "Financial News" suggested in the Fund proposals." California Edison and Southern
the form of blocked sterling actu¬
E. C. Coultry & Co. to
Emphasizing that Britain can¬ California Gas.
|
On the other hand, not all British
ally may be less burdensome than
thinking regards such a course as not enter a multilateral system
Be Formed in New York
the $3.5 billion British World War
until it has assurance that there
practical.
J'.;-,
"I debt to the U; S. A. The blocked
G. J. Hamell Dies
E, C. Coultry & Co. will be
will be full employment all over
.sterling debt, presently- invested
the world, PEP concludes that in
Observations by "PEP"
George Janvier Hamell, former formed as of July 16th with of¬
mainly in British Treasury bills,
fices at 39 Broadway, New York
While we make no attempt here practice the future of the Bretton investment broker of New York
"will probably average less than 1%
Woods plan is likely to be decided and Philadelphia, died at his home City.
Partners will be Edmund
to analyze the above proposal for
a year in interest. If I am not mis-,
the
solution
of
the
blocked- during the transitional period. after an illness of three years. C. Coultry, member of the New
taken, the World War I debt in¬
Stock
Exchange,
general
That PEP is willing to have Brit¬ During, the 1920s Mr, Hamell was York
volved an interest rate of AVz%_ sterling problem either from the
ain enter the Fund is due to the associated with several investment partner, and Eleanor D. Coultry,
] and, 3 Vz %. It may be possible, to standpoint of its effectiveness or fact that under, the Fund, until
limited partner.
Mr. Coultry has
firms in New York and Phila¬
service, the sterling debt after ad¬ its acceptability to the owners of Britain has achieved equilibrium
delphia, including Paine, Webber recently been active as an indi¬
justment of its capital amount the balances, attention, may be in its balance of payments, that &
vidual
floor
broker
and
prior
Co., now Paine, Webber, Jack¬
'with a smaller annual payment called to the note on India's ster¬
country js free "to retain any
&
Curtis,
1416
Chestnut thereto was a partner in Sincere
than the American war debt, and ling assets and the settlement of trade or clearing agreements we son
& Co.
'Britain' will have a great / deal Britain's war debts published in

its exports and it will
that -by disposing of its

to build up

not

do

announcement in an opinion which

Union

The California

been

in favor of negotiated

_

■

•

.

.

;

,

"

'

.

'

.

in meeting the

flexibility
annual services.

:more

ing, a great

Strictly speak¬
part of the war-time

sterling^ obligations will always
remain "as additional sterling bal'ances in London.
If the volume
'of world trade, and particularly
'British trade, is

doubled, the need

additional sterling balances
will increase too, and several bil¬
for

lion dollars

worth of sterling may

well be absorbed

in such working

balances. Furthermore, Britain has
exceptional trade connections with
'the sterling-owning areas which
may result in a direct expansion
of British exports on the basis of
its
sterling
debt, something it
could not count on with a dollar
debt.

Liquidation of United
Kingdom's Investments

No Further
•

"There are

several reasons why
want to sell any

Britain does not

investments to liqui¬
date the blocked balances. First,
there is the question of prestige.
more

of its

For several

;

the

strength
based

centuries Britain was
banker.
Britain's

world's
on

in no small part
its capacity to bring its

was

the

September 15, 1944, "broad¬
issued in Britain by PEP

v

■

Street, Philadelphia.

•;

(Political
and Economic Plan¬
ning).
PEP points out that the
greater part of India's expendi¬
ture charged to Britain has been

not necessary- to the
defense of India and that, in view
of the enforced sacrifices by In¬
dians represented by those claims,
any
reduction inevitably would
arouse intense bitterness in India,
which
is the largest holder of
blocked sterling.f PEP also admits
that the bulk of British wartime
purchases in India have been at
controlled prices, not reflected in
the general price index, and that
there is no corresponding assur¬
ance
to India as to the prices it
will have to pay in Britain, when¬
ever it finds itself able, to spend
its blocked sterling for
British
goods. Suggesting the funding of
the blocked sterling at low rates
of interest and its release gradu¬
ally and only for purchases of
British goods and services addi¬
tional to normal purchases, PEP
observes
that
such a "sterling

This advertisement is not,
these

New Issue

150,000

E. R.

$4 Cumulative Preferred
(Without

ble

with

full

the

obligations

(plus accrued

endure for

that international trade will
and that Britain
will be compelled to resort to
these direct measures; or

(b) that

regardless of the volume of world
trade, Britain can secure distinct
advantages from direct control of
the balance ot payments."




Stock

value)

share

dividend)

share

98,906 of these shares are being offered by the Company in exchange, on a
for share basis (with a cash adjustment of dividends), to holders of its outstanding
$5 Cumulative

Series B,

Preferred Stock, Series A and

$4.25 Cumulative Preferred Stock,
the unex¬

set forth in the Prospectus. The remaining 51,094 shares and
changed shares will be purchased by the several underwriters.

as

of

noted in passing
that a
considerable portion of
British opinion holds to the view
(a)

par

Price $108 per

tion,

not be expanded

Squibb & Sons

area" device would be incompati¬

bol, Britain will want to retain its
international investments. The in¬
ternational investments that Bri*"It should be

of

The

membership in the Fund. Since
this condition would, by inten¬

into

and is under no circumstances to. be construed as, an offering
solicitation of an offer to buy any of such Securities*
offering is made only by the Prospectus.

Securities for sale or as a

for purposes

play in the inter¬
national sphere. If only as a sym¬

resources

.

like."

sheet"

Copies of the Prospectus may

a

considerable, time.....

UNION SECURITIES

Indeed, elsewhere in the same
pamphlet PEP observes: "For our¬
selves, in view of the size of our
payments
problem, the
trapsi-

to

the

HORNBLOWER & WEEKS

Nov. 14, 1944.

E. F. HUTTON &

International

Business Conference, Rye, N.

Y.,

HARRIMAN RIPLEY & CO.

CORPORATION

INCORPORATED

MERRILL LYNCH, PIERCE,

fCf. statement of Sir Chunilal
B. Mehta, Chairman of the Indian

Delegation

be obtained in any State from only such of the
licensed dealers or brokers in such State.

undersigned as are registered or

extend over a long period
of years, insofar as blocked ster¬
ling
is
concerned
the
Fund's
"transitional period" is likely to

Jvlv 2. 1945.

FENNER & EEANE

KIDDER, PEAEODY & CO.
COMPANY

■I nra

mpi$

THE COMMERCIAL & FINANCIAL CHRONICLE

96

Thursday, July 5, 194S
trends and progress

High Level Employment
of

segments

society; to promote
the general well-being of all; and
to establish justice and a spirit

Common Stock

Those

request

on

who

should

ment

major depressions. The American
people have more or less instinc¬
tively reached the conclusion that

fol¬

wide-spread unemployment is the

through with such basic re¬
sponsibility, it gathers and solid¬
ifies the confidence of the people.

greatest economic waste and must
be prevented at all costs.
This
conclusion is echoed in the public

The task of Government is

statements of their leaders. There

As

interested.

Government

lows

Merrick ,Waddell &
55 LIBERTY STREET,

Co., Inc.

NEW YORK 5, N. Y.

'The Securities Salesman's Corner
"

By JOHN BUTTON

In addition to several
days of trying our hand at fishing—we talked about selling secur¬
ities.
In fact, we did more talking than fish catching—that's the
! way it usually turns out.
.
:
You can learrt a lot about selling from fishing.
Fishing is a
*, lot like selling. It demands patience, requires study and application
(big fish aren't caught by amateurs except by accident), and you'd
better have calm nerves and know just the exact moment to "set
that hook" when a big one strikes, if you want to land him.,;
Anybody can get hold of a piece of line, some hooks and a
'worm and catch a few small
panfish.
In fact, you can catch a
basket full of them without much trouble if you just find out where
securities dealer in upper New York State.

'

'

little fellows are hungry all the time.
selling securities, or anything else for
that matter.
If you expose yourself to business in a "bull market"
when all the little pan-fish investors are climbing out from their
several years of famine, you will do some business but you won't
do a big business.
There are some salesmen who produce a large
annual income from many small accounts but these are the exception
to the rule.
The salesman who wants to put his earnings in the
higher brackets must go after the bass, the pickerel and the pike.
It's certainly sound business to have some smaller accounts, but
they take up too much time for the profit involved.
;
Now if you want to catch some of the big fellows you've got
to have the right bait, you've got to study their feeding habits,
their spawning time, their migrations and their special tastes for
different types of food at varying times of the year.
A good, wet
fly fisherman walks through the stream .and picks up _some rocks
to see what kind of insect life is around at a particular time of
year—that helps him to choose his lure.
It's an entirely different
matter to land some of the real big fellows than it is to fill a bucket
full of perch. The big fellows require patience and they are smart.
Selling securities isn't the easiest job in the world by far—and
for that reason, if for none other> a man should make as much money
out of the business as possible.
There is a direct, shortcut to higher
earnings in the securities business and that is in QUALIFYING
are hanging out—these
It's the same way with

they

-

:

v

PROSPECTS

THOSE

THAT ARE

NOT PROFITABLE—WEEDING

DON'T PAY THEIR WAY —
KILLING OFF ALL THOSE PROSPECTS WHOM WE BELIEVE
WE ARE GOING TO SELL SOMEDAY BUT SOMEHOW HAVE
NEVER DONE SO—AND PUTTING THIS SAME TIME AND EF¬
FORT INTO SOME LARGE ACCOUNTS THAT WE HAVE FOR¬
OUT

WASTERS

THE TIME

is

a

of

you

at it from the standpoint of available time there
the development
Why not spend as much of that time as pos¬

look

limit to the number of hours a man can give to

retail clientele.

a

the business of. investors whose orders mean some¬
thing in commissions and profits, so that when you do open up a
few of these accounts you'll have sufficient financial rewards from
the business to make it pay you well.
^
'
Why not select at least twenty-five prominent, financially
important, potential, or actual investors, in your territory, and go
after their business?
Keep the smaller accounts—they are the bread
and butter of any business.
But once you land a few of the big
fellows the little ones seem pretty tame after awhile.
y
sible cultivating

British Treasury Eases Sterling Curbs

"Times"

an

on

Associated Press dispatch, published in the New
July 1, the British Treasury has announced

British residents in the United States, its
dependencies and 13 Central and South American countries are now
"freely available" for transfer to any other American account in the
same territory/The South Amreican countries affected are Colombia,
that all sterling accounts of

Costa Rica, Cuba, the Dominican^
Republic,
Ecuador,
Guatemala, balance

Honduras,

Haiti,

Nica¬

Mexico,
Salvador

Panama,

ragua,

and

Sterling
be

residents

in

such accounts also

usable
in

for

payments to
British sterling

the

which is roughly the whole

area,

at the close of business

June 30 at the rate of $4.02 M>

stated

Associated
further

Press

that

a

.

dispatch
Treasury

spokesman explained that the rate
of $4.02 lk was guaranteed in 1940.

With

Britain

now

feeling

more

Empire, and payments for United
Kingdom exports to the American

confident, the guarantee was be¬
ing withdrawn and account hold¬

territory affected.

ers

According to the British Treas¬
announcement,
"arrange¬
ments heretofore in force regard¬

could

the rate
clay in their transactions.
accept

of the

American accounts'
and 'United States registered ac¬
counts'
will
no
longer - apply.
Holders of 'United States regis¬
'Central

tered.
until

accounts'

have

the

option

Sept. 30, 1945, to remit the




Lubetkin Named Director
Lloyd E. Lubetkin of Seligman,
Co., 41 Broad Street,

Lubetkin &

New York City, former President
director

of

the

all the

for

of

solutions

to pos¬

as

that

problem.'

That is yet to be worked out,
solution must be

its

the

that

the

reasonable to

and

for us an even higher
standard of income, consumption
and employment than it has in
the past,?
v,
v
'
may secure

Government Assistance

Ritz

that

segments of the
operate in a coor¬
cooperative manner

and

world

well

as

we

Chapter

if the Government is to retain the

Tower

Hotel, has been elected a director

confidence

Nine of the United Nations' Char¬

utmost

ter, which in part reads:

There is

"With

'
view to the creation of

a

conditions

of

stability

and

well

being which are necessary for
peaceful and * friendly relations
among nations
the organiza¬
tion shall promote
higher
standards of living
full em¬
ployment
and universal re¬
.

.

.

.

.

,

.

.

.

for,
and
observance of,
human
rights and fundamental
spect

freedoms for all.
,

.

."

.

The taking on of

responsibility

requires
govern¬
ment to do everything possible
for us, to avoid mass unemploy¬
ment in this country, such as we
have experienced in the last 15
years or more. Thus the Govern¬
ment must recognize the two fore¬
most essentials for the protection
and

of

survival

,

American

the

namely, the mainten¬
and the avoidance
unemployment.
;

economy;

of peace

ance

of

mass

the

.

society.

in which

individual

the

serve

order

in

to

promote and maintain his freedom
and prosperity.
It is the sincere aim

of all the

people that the next great Ameri¬
achievement

can

maintenance

be

that

of

the

of

High Level Em¬
ployment for an indefinite num¬
ber of years ahead.
I

this extended

of

other way
Government can
no

collective

,

.

.

Govern¬

our

ment the

domestic

in

as

Thus

lend to

order to

our

should engage in promoting, the
greatest measure of high level
employment throughout the
affairs.

in

would

Dr.

Goldenweiser, of the Fed¬
Board,
recently

Reserve

our

domestic

affairs

this way:

and

work

wants to

work, he

can

decent job somewhere
in the economic system.
It does
can

get

not

mean

a

forced

work

or

slave

work at low pay; we are

of

society

a

does

not

of

mean

speaking
people. It

free

useless

work

or

honest, strong and

,

Further

Government

Responsi¬

bility

By its police power Govern¬
ment, of course, should restrict
and limit aggression and
wrong-,
ful practices
amongst

segments

of

the

as

it

international

is

being

the various
just

economy,

committed

all served

to

affairs.

If

do
we

adequately by

our

Government,
with
reliable
in¬
formation concerning the implica¬
tions and

relationships in the econ¬
dealing with monetary, agri¬
cultural, industrial, trade and la¬
bor affairs, we should then more
intelligently take the responsi¬
bility, in our own sectors, for re¬
vising policies that are harmful,
and extending policies which are
helpful.
omy,,

The factors
Level

avoidance
tion

producing High

of

the

require

uncontrolled

infla¬

well as uncontrolled defla¬
We all know that if the de¬

as

tion.
mand
is

of

Employment

is

larger than

needed

goods

to

and

that

purchase

services

which

all

that

the
be

can

produced, there would be a pro¬
nounced inflationary trend. Con¬
versely,
mand

know that if the de¬

we

is

needed

less

to

than

that

which

is

purchase all the goods

services

that

be

can

pro¬

deflation
would destroy our
ability to reach the goal of main¬
taining High Level Employment.
or

We should all be able to
with

high confidence,

depend,
effi¬

on an

cient, honest and economical Gov¬
which has

ernment

a

policy th&t

society of self-respect. It does
not mean no competition; it means
opportunity—for men and women,
and for

savings."
of the Government

The efforts

in

the

recent

past in

setting

instrumentalities

have

up
sub¬

tribution, insurance and banking
in the acceleration and expansion

production, high employment and
general prosperity,
and falling
production, serious unemploy¬
ment,
wide-spread misery and
danger to our institutions."
Again,
as
Hager
and
Kirkpatrick, in the September, 1944

emergencies, which have assisted

Review"

the

enduring/

interests of the people and their
welfare.

stantially served production, dis¬

Economic

commend

'made work'; we are speaking of

is

.

to generate
strength out of weakness and to

remains

principal single economic ob¬
jective
that
will
have
to
be
achieved if the existing economic
system is to survive.
.
"The
choice
is between high

"Maintenance of employment

High Level Employ¬

It should aim

ment.

duced, that we would have a de¬
flationary trend. Either inflation

some

the

keep, all the people conscious of
their cooperative p&rt in attaining
the goal of

"Full employment means simply
that if a man needs a job and

stated the Government viewpoint

concerning

The Government must have

constant over-all view of eco¬
nomic and social affairs, so as to

and

a

eral

pro¬

with Dr. Sonne,
of the
Planning Asso¬
ciation, who recently observed:
agree
National

.

Government Viewpoints

take

for

a

various

economy must

favor

Government

cies.

were

The

responsibility

in

,

greatest measure of sta¬
bility and effectiveness, The huge
responsibility of the Government
demands that the people adhere
to sound policies and procedures

States

United

assume

the

ducing High Level Employment/
except in great national emergen¬

first claim

a

vision and initiative, so
free enterprise system

our

upon

dinated

It is

of

all

private and public service
to the economy. Temporary agen¬
cies
have
been erected
during
in

holding

condition
served

comparatively good

a

health.

of

the

that

have

I

development

ob¬

of

insurance, for example, has been
enormous, due in some degree to
the wide-spread promotion and
establishment of social security.
We

have

experienced

already

consistent

When

with

realize that

we

the

best

have

we

actually exceeded our fantastic
production program, we be¬

war

come conscious of our
ability and
capacity to produce, distribute and
consume
ail goods and*services
required to reach our goal.
High

Level Employment is, after all, a
social goal with economic impli¬

cations;

as unemployment is an
economic danger with social im¬

plications.

With

understandable
of

other

adequate

and

information,

policies of labor

as

segments

well

the

those

as

would

avoid

dangerous trends, and not yield to
expedient actions
which
might
have disastrous results.
For

example,

statement

was

;

important
made in a pamphlet
an

high level of
employment in the post-war world

amazing educational processes at

published by the British Workers

work because of Government pro¬

Educational Association

will

cedure.

The

ifestly,

the

"Maintaining
be

a

a

necessary

condition for

the survival of democracy. HIGH
LEVEL

EMPLOYMENT is not

a

gift of the gods, nor the product
of automatic market forces; main¬
taining it may be a difficult task."
As
another
representative 'of

Government, Dr.> Hinrichs, Acting
Commissioner of Labor Statistics,
United States Department

of La¬

bor, recently stated:

job in the post-war period
make sure that everyone

"Our

is

to

who

wants

a

job is able to find

the

proper
Government is

tive

task

effective

which

Commerce, stated on January 18,

ahead

the

Enterprises, Inc., own¬

operators of the Hotel
Warwick, at 54th Street and 6th

ers

and

Avenue, and 20 East 57th Street,
9 East 57th Street, 14 East 58th

Stree( and 22 East 57th Street.

is

to

develop the most
relationships
between

various
in

economic

the

utmost

ernment

American

of Midtown

stimulate

to

segments,

last

analysis must
govern in the attainment of these
goals. The part the Government
must play
in maintaining High
Level Employment will require
the

farther

of

private economic and social
organizations
to
their greatest
measure
of public service.
The
magnitudes to which the Govern¬
ment might point are goals for
the economy to reach. Its opera¬

Chief Na¬
tional Economics Unit, Bureau of
Foreign and Domestic Commerce,
United
States
Department
of

function

the

the

S. Morris Livingston,

American

public is
becoming conscious of the poten¬
tially higher levels of living by
advanced security standards. Man¬

one."

"Looking

and

doing

are

1945:

ury's

ing

they

people.

(subject to banking charges)."
The

Venezuela.

will

on

as

now

stated:

Sterling Balances of British Residents in U. S. in
"American Accounts" Which Comprise Also Thirteen Central and South
American Countries, to Any Other American Account in These Territories
According to

great

are

agreement

such

no

sible

another disastrous world conflict.
This

"American

Permits Transfer of

York

national
giving
Government a greatly expanded
responsibility in world affairs in
order
to
prevent,
if possible,

WHO

MERLY BEEN WASTING WITH THE "PAN FISH".
If

of

We

is

t

#

*

event

the

emergency.

accompanied by a successful

Last week-end we did some fishing,

amaz¬

ingly complicated since the pop¬
ulation constitutes a huge struc¬
ture of
136 million people.
It
should only take1 control in the
economy after all possibilities are
exhausted for the people to Care
for their own instrumentalities, or
in

QUALIFYING PROSPECTS

;:

people need to give more atten¬
tion to the problem of avoiding

the

positively should not

,

Over

represent Govern¬
personally be dis¬

of reasonableness between them.

Prospectus

ment

thinfci:

other

and

businessmen

toward

Level

(Continued from first page)

Hytron Radio & Electronics Corp.

the economy
goal of High
Employment. The Govern¬

makes

of Gov¬
assist the

coordination

advice.

To

as

follows:

"Another

problem created by
full employment is the tendency
to inflation.

relatively

When labor is

to

the

demand

the trade unions

are

in

a

scarce

for

it

strong

position

to force wages up, and
employers do not object to raising
wages, since it is easy for them
.

to pass on,extra costs to the con¬

prices.

But

workers
wages
wages

form

the

in

sumer

as

of

prices

demand

higher

rise

the

still

higher
and the 'vicious spiral' of
and prices sets in."

Honest information from

a

gov¬

ernmental source in which

we

would

should

have

confidence

unquestionably

require

us

all

to

avoid such disastrous roads.
With

huge natural and fi¬
with our com¬
petent labor force; with our ex¬
panded
production plants; and
able and efficient management;
our

nancial resources;

private economy to de¬
velop a successful formula, in this
respect, one agency of Govern¬
with our manifest American in¬
ment, affiliated with all appro¬
priate departments, should have genuity and our organizing ability,
we can
certainly do as well for
authority to inform all of us pe¬
riodically and accurately of the peace as we have done for war!

THE COMMERCIAL & FINANCIAL

Number 4400

Volume 162-

Probably the best method of con¬

What the Investment Business

have every con¬
business be¬
member of
some
Ex¬

trol WQuId.be to

cern in the securities
come

a

change.
10.
ties

(Continued from page 69)

:

that

be

removed

brokers should
permitted to continue, the prac¬
tice of posing as "principal", when

him

this

is

tention

complete

to

necessary

really buys
and sells for the account of his
own inventory, he can hardly be
broker

the

dis¬

is

subject

this

Whenever

liquid, and closer market from

listed,

is

stock

a

counter market will still be neces¬

their securities widely distributed,

has

information

SEC

5;

sulted

regulations

in

companies

bond
from

with

issues

banks

insurance

and

12.

re¬

ofl

issues

Today, if a customer, purchases
100 shares" of a listed stock at $50

private investor or small institu¬
tion.
This situation , should
be

share, the gross commission is
$25, out of which- the salesman re¬
ceives about $8.
.(Salesmen, are

remedied

not.permitted to be paid commis¬
sions on the usual transactions in

to pay for

per

.

listed stocks, but salaries are gen¬

basedi on about one-third

erally

of the. gross.). Now, if the same
$5,000 were invested in a stock, at
$5 per share, the gross .commis¬

It is obvious
that many- partners and salesmen
would encourage.the customers to
sion would. be

■

$100.

can

in the

by

the

parts

purchasers of securities
them in a certain num¬
This matter should
be left to the brokers, who know

ber Of days.

their

customers.

own

?

7; Sponsors should be permitted
to .place supporting orders for se¬
curities at all times, for the pur¬
|

stabilizing

of

pose

the

market.

The Government has often found
it

to do / this in the
bond, market,
and

necessary

Government

stocks; are
recommended, the profit is even
greater/
Obviously, it is wrong
to penalize the conscientious part¬
ner or salesman who puts his cus¬
tomers in the better grade of se¬
curities, who places their interests

tire underwriting

-

over-the-counter

If

,

which

Requires

buy the Stocks involving a gross
commission of $100, instead of $25.,

,

moment

by removing the cause.
6. Remove the regulation which

:

should the RFC take over the en¬
securities

it necessary to place

find

would

business and sell
the public, it, too,

to

supporting orders on a scale down
to stabilize the market.
8.

have

We

minimum

a

wage

for labor.

mal¬

Why not have a mini¬
mum wage for the investor?
Cer¬
tainly savings and investments
should be encouraged; they are
necessary
for
the
country's

practices and recklessness on the
part, of numerous people in the

growth, and for tax levies. Why
not discourage the sale of new

requires
more
supervision over the part¬
ners by the Exchange and Asso¬
ciations; more supervision over

bonds

the salesmanagers by the partners;

bidding banks from paying inter¬

supervision over the
salesmen by the salesmanagers.
One of the bad features in the
investment
world
has
been

est

first, as all salesmen

The

should.

change in the com¬
mission rates.
The present com¬
is

remedy

a

mission structure encourages

In

business.

and

1

turn,

this

more

carrying
3V2%

a

than

less
vide

4%, and

If the lawjfor-

checking accounts were re¬

on

to

market,

any

rie

Mascoe

W.

stock

a

bond

or

his savings in a
savings bank, building and loan
society, in a mortgage on a prop¬
erty
in
the
neighborhood
in
which
he
lived
and which he
He placed

was.

knew, or occasionally bought life
insurance annuities.
The World
caused

people to buy

many

during the

markets

with

Street.

security

(Special

to

The Financial

Baker &' Co.

(Special

to

The Financial

with Reagan & Co.,

Street.

Green

has

been

lax

making

in

9.

Every

concern

or

of

trouble

came

in the securi¬

whose

to The Financial

(Special

paid

SAN

among

listed

the

S.

Leveira

have

been

int. Coupon

■

When

security is listed there is

a

firm

selling of securities should be con-^

bid and
asked
price
Available to everybody, and any-

fined

One

the risk.

one

anywhere

it is in

can

ascertain what

few minutes.

they

to
are

who

those

.

know

the

to listed securities.

ties^ markets to those equipped to

The

liquidity

.:

of

the

:

markets

see

New
tal

merlv did—and leave the securi¬
handle them.

f *

4

;

ties

been

seriously

im¬

A

needed for the

thing

mentioned.

the

prevent;
common

SEC

was

whereas,

in

designed to
1929, Steel

declined from 261 to 150

in 11

weeks

(a drop of 42%), the

same

stock,

under

SEC

securing

ests,

well

as

weeks,

associations

the

spring of 1940 the Dow-Jones

own

service

seems

industrial averages dropped from
145 to 110 in a few
days, or a de¬
cline of about 25%.
But in 1929,
when the great stock market panic

groups.

the

pleas

R. L

to ' me. that
and

large

Changed to

SEiiliinglaw Ge.

NASHVILLE,

TENN,

This alone is an important reason

laws apply to all banks.

why

mention

I

Which
1.

I

some

of

believe need

on

Co.

organized

There will

be

of

day.

to

which

destroy

are

result

The

former traders no longer
2.

The

posite

to

the

appear

placed privately through the undersigned in May 1945 with certain institutions
for investment. They are not offeredfor sale and this announcement

purchasing

them

appears as a matter

of record only.

"•

•

$30,000,000

There

Cities Service Gas Company

to

First Mortgage

"invest¬
without
without

and

for

regulations

proper

office,

capital

adequate

1

open an

to

anyone

securities"

ment

handling

Pipeline Bonds

2%% Series due 1965

cus¬

securities.

should

be

designated

capital requirements for

rules

on

in

securities

the

everyone

while
that

balances

selling

stability;

that intended*




(Note

rules

It
might be worth
considering a requirement
everyone
in the securities

is, many
trade.

short

business;

customers.

business

contributed

market's

permit

the

sold

nothing to the
in fact, the§c
rules have produced a result op¬

have

were

custody of securities and cash for

helps

securities

same

not

does

Act

should be removed.

the
liquidity of the market, because
it requires margins for purchases
rule

no

personnel.

;

should be uniform with regard to

floor traders

This

It

Banking

banks." alike;

for
"daylight-trading" by

The senseless requirement

margins

National

all

tomers' cash and

the items
correction:

These Bonds

who
or

be

tomers

Federal

Bank

year

free

securities

required

Corporation,
once a

keeps

to

Deposit
and

be

for

join

cus¬

the

-

Merrill

Guaranty
examined

banks are, and
use -the balances.

as

Corporation
'

.

*-L.

"

credit

by the National Bank¬

ing Department,
be permitted to

The First Boston

JrTvT

'

—

Gray,

Shillinglaw & Co., American Trust
Building, announces the change of
its name to -R. A.- Shillinglaw &

Congress will heed
of

modified

1,, 1943, Jari..l, 1944, July4

Firm Name

should

membership.

a

inter¬

for the purpose of

exchanges

on

1, 1944 and Jan. 1, 1945, coupons.

the
investment
request their
^embers
to
aid
the ,'Investors
Fairplay League in enlarging its
it '

prise,
stock

And in

their

for July

preserving the traditional"Amer¬
private enter¬

law/ de¬

drop of 58%.

In
as

resume

basis, and for obtaining payments

ican System of free

clined in 1937 from 121 to 51 in 11
or a

to

legislative action
suggestions herein

the

paired.
Witness the horrible de
cline in the* fall of 1937, some¬

for holders who

haye, pot previously accepted the
Government

offer of the Mexican

vestors would

have

York.

fiscal agent

the

*: \

large body of organized in¬
be most helpful in

and the collateral value of securi¬

fiscal agent,, at 70 Mfall St.>
Letters of transmit¬
are available at the office of

pany,

the "-small man" .place
savings in the manner vhp for*

his

(No. 5) will:be made by*
Pan-American Trust, Com¬

coupon

doing, or who Caii afford
It might be best to once

again

1, 1945, interest

payment of July

' what

Moreover,
public record is made of price
changes and; volume with regard
a

the general public, whether
not.
It is interesting to
that the Federal Reserve

and

the

t

observe

Act

Rita

added to

First Boston Corpo¬

staff of The

■

or

regulate

/ '

CALIF.—

and

Awble

Eleanor

distributed

are

changed.
To effect some of the
desired results, uniform State se¬
curities laws would be helpful.

helpful in this connection.

Chronicle)

FRANCISCO,

companies

all

securities

was

comes,

not, should be regu¬
uniform

for

regulations

a

investment concerns should
actively request their, customers
to
join the Investors
Fairplay
League.
A large body of organ¬
ized
investors
would
be
most

Lawson

city, and in different
ration, 235 Montgomery Street.
country.
When market. Perhaps after the present
such as in 1940, war we will see the same thing.
when Holland, France, etc., col¬
But the average man does not
Pay Mexican
lapsed, the over-the-counter mar¬ belong in the stock market, where
Holders of "any issued of the Ex¬
ket became nominal; there were great risk always exists.
High- ternal Public Debt of the United
no
firm bids for scarcely any¬
pressure
efforts should be dis¬ States of Mexico, who have as¬
thing, <- except,
perhaps, for
10 couraged in selling securities to a sented to the terms -of an agree¬
shares, at prices much lower than map with a few hundred dollars, ment date, Nov.;5, 1942, between
the last sales.
No one could tell or who is not familiar with the
United Mexican States and Inter¬
what the price would be, or what risk incurred, or who cannot af¬ national Committee of Bankers on
the next sale would be, or where.
ford the risk.
The buying and
Mexico, are being informed that
same

ties business, whether members of

forceful, sustained effort to have
these
laws
and
regulations

very

Inc., 575 East

Mr.

formerly with Leo G. MacLaugblin Securities Co.

bo^ds.

Exchange

world

Chronicle)

PASADENA, CALIF.—William
E. Lawson has become affiliated

lated uniformly; and with

investment

The

rower.

Chronicle)

CALIF.—Wal¬
ter Fruehling has joined the staff
of Wagenseller & Durst, Inc., 62S
South Spring Street.
Mr. Fruehling was previously with H. R,

quotations,
and bond

stock

the

into

&■

LOS ANGELES,

off, and the public, with idle funds
on
hand and having learned to
the

was

Bayly

boom at

war

billions of these bonds were

watch

Mascoe

D,

Company.

After the war was over

that time.

K.

con¬

Co.,' 621

&

Mr,

with

formerly

become

has

Lester

nected

low- yielding

buy

which become narrower and nar¬

;

vary

the average man did

what

know

Liberty bonds, and they grew ac¬
customed to watch the security

given
in different offices
at

Years ago
not

Chronicle)

might be less

the banks

pealed,
anxious

brought about by unwise laws
and
regulations by Government
bureaus.
I
refer
to
markets

'

pro¬

provisions for

sinking fund
bond issues?

new

rate of

coupoq

to

quotations

the

of
stocks
they now
by whole points or several

move

bank

and

to The Financial

LOS ANGELES, CALIF.-^-Bar-

Instead
Vs to lk,

percentage.
moving by

War

"over-the-counter"

where

choice

to decline a similar

averages

of securi¬

investing public gen¬
prefers the Exchanges'to

from

purchased

cover

The

the

com¬

market

be

to

over-the-

(An

expenses.

erally

removes

longer

merely sufficient

insurance stocks, municipal bonds,
railroad equipment issues, etc.)

This

no

on

for certain types
such as certain

ties,

panies.

*

be

sary

advisory service,
it is entitled to make a- charge
satisfactory to the customer.
furnishes

New
fees

to

secured

loans

na¬

should be listed

listing

accom¬

have
paying

the

tion's primary Exchange, the
York Stock Exchange, listing

plished nothing, and is often mis¬
leading.

the dealer
makes. Where the firm really acts
only as a broker, it is entitled
only to the commission.
If the
entitled to know what

firm

merely train¬

are

I

South

points.

Exchanges

grounds.
When companies
grow to national importance and
they

Such

West Sixth Street.

Chronicle)

ANGELES, CALIF.—Lloyd
Arnold, previously with Bank-

occurred, it took eight weeks for

ing

quiring certain stockholders to re¬
port their sales and purchases.

dealer, the customer is not

acts as

(Special ',o The Financial

to

plenty of

are

and Fewel &

Company

Company, has become associated
with Conrad, Bruce & Co., 530

LOS
R.

•

Spring Street.

local

the

from buying

(particularly small concerns) lose
it, because of lack of
profit to them. In spite of this,
the fact remains that one cannot
be a broker and dealer at the
same time.
Where a firm really

South

the

of courage, means

interest in

ANGELES, CALIF.—Frank
E. Gillette has been added to the
staff of G. Brashears
Co., 510

Exchanges throughout the coun¬
try where
many
securities, of
more
or
less
local
importance,
could be listed.
The regional or

ing

concerns

many

There

plishes no good, but prevents men
and knowledge
securities on panicky
day. '
4. Repeal
the regulations re¬

better market

a

wide

sufficiently

so-called "insiders" for sell¬
ing securities within six months
of their purchase.
This accom¬

in the
over-the-counter market for vari¬
ous
securities; that because of
the profit involved, more concerns
are interested. It is said that once
often

is

it.

warrant

standpoint of price spread.
!
3. Repeal the provision penaliz¬

that there

cussed, it is pointed out
is

standardized'

on

america

(Special to The Financial Chronicle)
! LOS

(Special

tribution

cushion; helps to make a more

a

"principal".

said to be acting as

least

at

reports

year,

not,

or

•| 11. Many reasons exist for en¬
couraging the listing on some Ex¬
change of all securities whose dis¬

so

security; the painful experience of
short sellers is ample evidence of
this.
But it does help to provide

the job.
Unless

do

a

.

forms.

desires to sell short, let
at his own peril and
risk.
Short selling does. not af¬
fect the underlying merit of any

correcting
problem, but continued at¬

has been made in

ress

twice

If anyone

Much prog¬

in fact they are not.

should

furnish

should

restrictions.)
be repealed.

these

rules

These

Toronto have

and

Montreal

believe that some

listed

whether

public,

If yen contemplate making additions
jwrsoww#!
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.

i

securi¬

in the hands of the general

are

Broker-Dealer Personnel Hems

...

.

All companies whose

97

CHRONICLE

Lynch, Pierce, Fenner & Beane

-

change in

of the United
contemplated that
will be any change in the
In

ber.

Senate

Group by 14-4 ¥@ie

nance

"armament."

The

'

ir><* of

pressing the
in

approved

gold content of the dollar at any¬
time in the predictable future.
The fact that the Senate has

of

sentiment

ilar

adopted

expression

Bretton

Woods

by

of gold,

9/10 fine."

the

The striking

last

Conference

and 5/21 grains

15

than

sim¬

a

follows:
is re¬

as

States

United

cate

favor of a general inter¬
conference.
This

reinforce

the

quested by the Fund to communi¬
the par value of the United
States dollar, such par value shall
not
be
communicated as other

ex¬

Con-

national' trade

amendment will

reads

the

out of this section,
Senators

silver

the

conference with
the House of Representatives, as^
bill will call for a

Bill

"When

year.

which

At the insistence of silver Sen¬
ators the Committee struck out
Some

Section 6 of the House Bill.

6

Section

that

claimed

Committee

the

of

members

was

un¬

re¬

should

be

the

contracts

other

or

article

to

excuse

now

here¬

or

There

other

' four

were

Taft

adopts the bill as it comes out of
the Senate Banking and Currency

amendments, one of them seeking

Committee.

but space

/

,

A motion, attributed to Senator
Fulbright, to make the Secretary
of State instead of the Secretary
of the Treasury the Chairman of
the United States Council which

supervise American

will

the word "cyclical"

strike out

to

limitation prevents giv¬
ing their content here.

activity

Tobey on the ABA

|

During the committee consider¬
ation
of amendments
in exec¬
utive session Senator Tobey came

committee

the

of

out

far

"So

stated:

a

publicly
licked

have

we

the small segment

in

room

and

mood

beaming

of the ABA led

Mr. W. Randolph Burgess on
vote, and we will continue
so."
;
l.;
.•

by

every

one

do

to

;

BW

Senate debate on
gun,

Senate

in

Debate

Prolonged

No
8H08

be¬

once

is expected to be completed

within

not

more

than

week;

a

possibly within three days, some
officials
expect.
With
United
States ratification, not more than
two
months
are
expected
to
elapse before the

'
J, W.

BROWN BROTHERS HARRIMAN & CO.
PRIVATE BANKERS

turned

Banking
PHILADELPHIA

BOSTON

NEW YORK

Fulbright

financial field
down by the Senate

in the international
was

and

Currency

by a vote of 10 to

tee

Commit¬

word "arm¬
ament" in the Bill was the only
concession which the Committee
made to Senator Taft, who offered
a number of motions and amend¬

of Condition, June 30,1945
ASSETS

.

Cash

on

.

Hand and Due from Banks.

United States Government Securities

«

«

s

$ 36,302,713.92

,

.

>

57,517,174.58
42,016,909.30

State, Municipal and Other Public Securities
Other Marketable Securities
Loans and Discounts

Customers'Liability
Other Assets

«

t

•

.

on
•

»

,

,

,

.

.

.

.

...

.

,

«

3,871,989.56

«

*

•

42,936,736.84

Acceptances

>

«

«

6,270,822.21

*

s

«

«

667,888.58

.

•

«

s

•

$189,584,234.99
LIABILITIES

Deposits—Demand
Deposits—Time
Acceptances

«

.

4,034,590.54 $167,857,610.46

•

.

.

.

$163,823,019.92

.

i

,

Less Held in Portfolio

Accrued Interest,
Reserve for

$

.

6,701,667.59

.i

Expenses, etc.

Contingencies

Capital

.

,

,

r

.

Surplus

,

,

,

«

5%

,

t

«

137,662.89

«>-.

,

s

1,500,000.00

.

.

$

♦

.

V-

.

$189,584,234.99

U. S. Government Securities Par Value $700,000 are

Deposits

Pledged
Required by Law.

as

to

Secure

...Y

■

,

'

•

:

;

*

,

proved international trade prac¬
tices and commercial relations and

providing elimination or substan¬
tial reduction of discriminatory
exchange
restrictions and dis¬
criminatory trade practices.
In support of this motion Taft
cited Article XIV and other ex¬
ceptions in the Articles of Agree¬
ment of the Fund, the
Senator

that our money would
paid in and lent out without

obtaining
removal of the dis¬
criminatory
restrictions
for at

called for

complete substitute Bill elimi¬
nating all reference to the Fund
and setting up only the Interna¬
a

Thomas McCance

Complete Facilities tor Domestic and
Foreign Banking
Deposit Accounts - Loans- Acceptances

Ray Morris

E. R, Harriman

JL D. Pennington

Commercial Letters of Credit

Brokers

for
of

unsuccessful

motion

inserted in the Bill on

Purchase

and

Sale"

Securities

*IL Pelham Curtis

DAvm-G. Ackerman

/

sert

♦Charles W. Eliason,

Jr.

Ernest E. Nelson

♦John C. West

William A. Hess

F. H. Kingsbury,

'

L'

.

William F.Ray

Thomas J. McElrath
,

Herbert Muhlert

Arthur K.Paddock

Jr.

Joseph C, Lucey

Georce E. Paul, Comptroller

r;

Managers

♦Edwin K. Merrill

Joseph R- Kenny

.

Arthur R, Rowe-

L. Parks Shipley
♦Eugene w

Stetson, Jr.

Gale Willard

Harry L. Wills

Arthur B. Smith, Auditor
'Now in Government Service.

Licensed

as

Private Bankers and subject to examination and regulation by the

Superintendent of Banks of the State of New York and by the Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and ex¬
amination by the Commissioner of Banks of the Commonwealth of Massachusetts.




in¬

in Article XIV as
.

'Sec. 6: No

the

of

idea

BW

in

the form of a pre-San Francisco
Parliamentary speech by Prime
Minister W. L. Mackenzie King.

Banking

mittee

approved
enabling

Woods

Currency Com¬
the
Bretton
legislation
on

July 3.

will be put in the Federal

money,

Reserve Bank to the credit of the
Fund

and

"Earnest

U. S.

and

BW,
will

for the

countries

44

put

in

the

by

$275,000 is for the Fund

A;

$317,500

all

Of the $592,500

Bank.

Money"

For

Bank.

which

were

2jt

the total "Earnest1 Money"
$1,790,000.' V''/. 7

be

No More Russian

Members

Expected
Since there were several coun¬

represented at the San Fran¬
Security Conference which,
not represented at BW, it
is anticipated that they will be
admitted to. Fund and Bank, after
the new institutions have 'started

cisco

were

Denmark, which had

functioning.

at

observer

an

the

BW

Confer¬

should .be one of the first
of the additional members. This "
is not expected to apply to White
Russia and the Ukraine, however,

ence,

officials here state.. It is reported
here that

"Earnest Money" Due at Once

the Russians gave offi¬

prior to the BW
Conference that they had no in¬
Agreements it is required,
tention of seeking separate rep¬
by the terms, of Article XX, to
resentation on the Fund and Bank
deposit with the United States
for -individual
component coun¬
Government, in the form of gold
tries of the U. S. S. R.
or
U; S. dollars, 1/100 of 1% of
its
total
subscriptions • to
the
Our Money's Worth
Monetary Fund and the Interna¬
Among the official architects of
tional Bank. This means in the
base of the United States an im¬ BW it is pointed out in moments;
mediate payment of $592,500 as of ebullience that the Fund and
"Earnest Money." This sum later Bank are the largest corporations,
will be counted as part of our re¬ ever to set up for so small a legal
As

soon

as

a

country

ratifies

cial

assurance

the BW

,

gold

quired

and 4.'"

The

subscription.

fee.

'■

%.•

;

,

*

;

Woods, Part of.
The Peace Program

Bretton

(Continued from page 66)
claimed
Fiske's

my

gives

a

interest

is

John

Periods

"Critical

History"

American

always

has

which

book

A

in

which

in
he

graphic description of the

difficulties which the Fathers had

writing the1 Constitu¬
tion.
I am quite sure that if
Fiske were alive today he would
write another book on the present

to

meet in

period in American history which,
beyond question, is the most crit¬
ical in the nation's entire career.
We

•

>.

endorsement

shall

member shall be
entitled to buy the currency of
another member from the Fund
in exchange for its own cur¬
rency until
it shall have re¬
moved all restrictions inconsist¬
ent with Article 8, sections 2, 3

♦Donald K. Walker

JIerritt T. Cooke

section 6
"

Howard P. Maeder

Charles F. Breed

Assistant

the Fund and Bank

see

Agreements before the San Fran¬

only when the

be amended to

follows:

Alister C. Colquhoun

James Hale, Jr.

effective

the Fund shall

Managers

Edward Abrams

most

operation, and even gave some
consideration
to
ratifying
the

pro¬

governments of the countries haviing 65% of the quotas set forth in
schedule (a)
shall have agreed
that the Articles of Agreement to

Investment Advisory Service

Knight Woolley

4/

anxious to

is

course,

in

tional Bank.

become

Thatcher M. Brown Stephen Y. Hord
Prescott S. Bush

of

Canada,

comprised the minority
vote
by*, which the

14-4

„

least five years.

Taft's

'

Louis Curtis

;

the

tries

//

ada contented itself with a strong

postponed until the holding of an
international conference
for im¬

would have

FACILITIES

*W. A, Harriman

Wait.

to

Ohio,

in

Senate

other

Empire countries—Australia, New
Zealand and India—are expected

Eugene D. Millikin

Hugh Butler
of

August;

before

act

.

TARTNE11S
Moreau D. Brown

cannot

cisco Conference. In the end Can¬

page 2 at the end of line 6 a
vision "that this acceptance
\

as

the Bill be

Taft's second motion

13,645,791.92

11,645,791.92

;

Public

V

that further action on

be

Brazil, Mexico and. Cuba.
The new British Parliament prob¬

such

first motion was

Senator Taft's

2,000,000.00

i'

otherwise

were

turned down.

claiming

6,443,169.72

258,497.87

.

These

ments.

65%

are

and until it does act, certain

The insertion of the

Statement

votes

the Latin American countries,

of

ably

8.

Amendments

Senator Taft's

necessary

represented by
countries
ratifying
the
Agree¬
ments.
With 65% approval, op-^
eration can begin. Among the first
to ratify, probably, will be some
the

of

Business Established 1818

Group

Millikin, of Colorado,
and
Butler, of Nebraska, along
with Thomas, of Idaho, and Taft,
Senators

after in effect.

communi¬
cated to the Fund by each memwill

ation

invoked

be

not

that

with any treaty,
reciprocal
trade
agreement,
or
public.or. private debt agreement,

before the Fund commences oper¬

since its purposes are
accomplished by Article IV, Sec¬
tion 1 of the Bretton Woods Fund
necessary,

of

provisions

failure to comply

Senate

full

the

that

suming

garded as an indirect slap at sil¬
ver/does not in reality affect the
status of gold in the Fund Agree¬
ment.
That Agreement provides
that the parity in effect 60 days

,

enabling

made changes in the

now

of

6

Section

Agreement.

also

amendment

an

fi¬

to

used

House

Committee

the

grtas

be

not

the

In The Minority

and

there

(Continued from first page)
should

striking out Section V of Article 7
substituting a statement that

case

States it is not

OK's iretton Woods
Fund

the

Thursday, July 5, 1645

FINANCIAL CHRONICLE

THE COMMERCIAL &

98'

are

still engaged in the most

terrible,of all wars, the cataclys¬
mic effect of which will not be

preserve
the peace when it is
made, for the rehabilitation of the
stricken areas and building up of

foreign trade, so essential to our
prosperity and the
world's as
well.
These

delegates

have

agreed1

peace and security are not
attainable by any nation acting

that

War is an international
affair, and the effort to prevent
it must be equally international.
by itself.

Part

of

a

Coordinated

Program

rejoice in the Congress's vote
extending the Reciprocal Tariff
I

amendment would
2 at the end
fully felt for some years to come. Agreements, with power to fur¬
of line 6 a provision "that this
While the war in Europe is over, ther reduce tariffs.
acceptance shall become effective
We must not, however, expect
yet we face the bitter struggle in
only when the governments hav¬ the
Pacific, with huge losses in too much, too fast, from the trade
ing 65% of the quota set forth in
capital and, worst of all, in hu¬ agreements program. It is not a
schedule
(a) shall have agreed
man lives.
cure-all; there are no cure-alls.
that the Articles of Agreement to
Overwhelmed as we all are by It is a necessary part of a coor¬
the Fund shall be amended by
the immensity of the struggle, and dinated
program
to
help
the
striking out Article VII."
by the tragic cost in lives and people of the United States and of
Still another alternative amend¬
the
world create
conditions in
in capital, we are determined it
ment of Senator Taft's rejected by
which they can be secure, and
the Committee would have made shall not happen again, and under
our entry into the Fund and Bank
United
States
leadership,
dele¬ prosperous and free. That pro¬
Another Taft

have inserted on page

conditional

of

on

the other member

amending the Articles
Agreement of the Fund by

countries

nations

gates

from

the

world

have

devised

of

measures

the

gram

to

make

includes Bretton Woods to
exchange rates stable and-

&?,l'<$\Ui i^*ia^^ipii8 «* j'"^'"^.
1

A

•

Volume

loans secure, and as an
participant at Bretton
Woods, I am doing everything
possible to have the agreements
adopted by the Senate. It includes
the Food and Agriculture Organ¬
ization to improve arming methods and knowledge about diets.
It includes
the aviation agreed
ments to open the skies to com¬
mercial flying when peace comes.
It includes international action to
restrain the operations of cartels.
It includes I.L.O., the strengths
ening of laws on labor standards,
and effective recognition of the

foreign
:
L

active

right to organize. It includes prof
taction of dependent peoples by
the trusteeship system and it in¬
cludes an effort to
protect the
fundamental rights and freedoms

everywhere, by
possible.

of human beings

whatever

are

means

talk, well said:
"Gentle¬
it is fine to have ideals and
to express them, but to make our
ideals effective, we must imple¬
ment
them."
And that is just
aneous

men,

government seeks to do
in the adoption of these several
far-reaching agreements, the Re¬
what our

Tariff Agreements,

ciprocal

the

Agreements

the Agreements out of San Fran¬
cisco.
- ■: '"r:,--*•'
Z

Perfect 7:7,

Not

Plan

(and- we
have
will cavil at

Perfectionists
some

in

midst)

our

they

parts of these proposals, but
must

not

remind

always

.They

prevail.

of the story about the

me

Prayer r Meeting in New England
when the minister, in addressing
his congregation

said, "Of course,
seen
a
perfect
man." Nobody spoke but a little
man in the rear stood up and the
minister said,
"Have .you ever
seen a perfect man?"
"No," said
the little fellow, "I haven't, but
I heard about one, and that was
my wife's first husband."

no

has

one

ever

General

heard

I

Recently,

Eisenhower address the Joint Ses¬

outlined
cooperation which

given to the war effort.

sacrifice
cost

has

has

been

and

plished

stand

the goal of

has

in

Axis

the

down

this

to

no

but the Allied Nations

have kept their eye on

putting

great,

too

allowed

been,

in the way,

No

now

Europe.

powers,

been

If

hell of war

of the

rence

mote

If

possible.

as

re¬

as

shall fail

we

high calling
respects, we must, con¬
the
alternative, which is

to measure up to our

these

in

sider

»

chaos.

'■

7'iV ■;

,

:■/

•

.

■

have spent
sums, sacrificed millions of
lives, paid out 30 billions in lendlease, and not hestitated to do
many unusual things.
To win the war, we

vast

Permit

Not

Must

Economic War
the

of

end

the

that

Now

war

the horizon, it is un¬
thinkable that
we
shall permit
economic war to engulf the world,
or that'we shall withdraw within
ourselves.
•
■
:
/
on

appears

I cannot emphasize
strongly that the battle for
future of our whole gener¬

Therefore,
too

the

fought in the Sen¬

ation is being

the, United States—the bat¬

ate of

against both political and eco¬

tle

nomic, isolation.
In my

opinion,, the rank and

American

of

Let

citizens

.

file

over¬

are

in

against fascism; that in their re¬
construction
period
they
will

provide American heavy industry
with its greatest market and that
we have no
basic areas of com¬

understand that
international
peace
cannot
without

maintained

who, for selfish reasons,
play such a game, contravene the
constructive efforts of San Fran¬
cisco and endanger the hopes of
millions that order and peace and
world cooperation can be set up.
This is

We who

problem,
We

with

time to rock the boat.

no

are

see

have

a

of

meaning

keen

of

sense

needed

each one;
nothing is fair and good alone."
are

With

a

large

by

part

of

Europe

prostrate
and
exhausted
after
years of expenditures of money,
and more tragic than that, the
expenditures of millions of lives,
know

we

that

Brandeis

Justice

right when he said, "If we
would guide in the light of rea¬

was

we
bold."

must let

son,

our

minds be

'//^v/-'//"",'''

:/

Bretton

Woods Agreements have

received

so

to¬

gether for war, the cost of which
is measured

in the

to

blood of mil¬

tion,

institutions

seeking, through!
of power, the
promotion of the wise use of
power, and finding the ultimate
thereunder accrue to every citi¬
security of life, liberty and the
zen. These things are fundamental
pursuit
of happiness,
and the
of continued
stability
and must be preserved at all costs. promise
and a rational progress, IN THE
They are a priceless heritage.!
it

So

to

well

is

reaffirm

their

rive

governed,

the

of

consent

the

a political security or¬
ganization would be as a skeleton

without flesh.
the

of

One
in

to

things

affairs

current

good sense, let us make
appeal, and I have faith that
it will not return to us void.
To that

our

the

.

arouse

I deprecate
attempt

public

I consider these

efforts

be

to

and

dangerous

It

It is

is

an

attempt to

Statement

our

->

'• 'A

#•••!*

•;

"j

.

ASSETS

injure the great efforts being at¬

Cash and Due from Banks

TRUSTEES

/'//:// ;Z;

the Senate.

»

.

The

Prostrate

a

situation

World

I

internationally is

T

Louis S. Cates

1,1^7.208,929.74

U. S. Government Securities
State and

Municipal Securities

•

■

efforts which I have outlined have

\

Colby M. Chester

Other Securities

4

•

•

»

»

t

objective—to

great

put

a

j.

John B. Clark

Purchased

Loans and Bills

♦

•

.

,

Mortgages

f

$423,000.00

on

Walter G.

Hand..$2,825,585.00

on

in Banks—;

28,232,391.66

28,095,688.04

U. S. Government Bonds
N.

Y.

State

and

Capital

• ••

—

Undivided Profits

$500,000.00

423,372.62

—

City

Checks Certified.—

15.621.74

Discount

and Time__

Unearned

Reserves for Taxes, Ex¬

Collateral,

Demand

67,723,241.15

Depositors—

1,520,372.95'

'

758,463.18

I, 180,131.47

Bills. Purchasedt

»

♦

.

«

«

r

♦

♦

13,424,008.00

.

3,982,207.34

1,416,628.60
$2,022,744,833.41

v

>\

LIABILITIES

-i

Ewing

Capital

.

,

Surplus

Gerry

.

,

.

..

.

$21,000,000.00

,

.

•

60,000,000.00

•»

Gray, Jr.

Undivided Profits

George M. Moffett
John K. Olyphant, Jr

*

30,261,954.78

,

Benjamin O'Shea

Dividend

Eustis Paine

Acceptances

,

.

.

.

Deposits

*

•»

•

Payable July 2, 1945

.

.

.

^

12,128,813.89

.

•

~

1,050,000.00

»

1

.

«

»

$111,261,9^4.78

»

Interest Accrued, etc.

Reserve for Taxes,

2,855.90

845,054.70

.

Bonds and MortgagesLoans on

Due

7,328,314.19

Stocks

*

tF

Auguste G. Pratt

5,005,014.55

Bonds
Ottier Bonds

«
s

Liability Account of Acceptances

Eldridge

William F. C.

2,404,022.53

9

*

«

t

.«

t

/

Total

7,000,000.00

Surplus

.

•

Dunnington

William A.

William S.
LIABILITIES

RESOURCES

.1

Customers'

1945

June 30,

.

Interest Accrued

*

•%.

.

Banking Houses

George W. Davison

466,803,620.71

•

#*♦•»»«

Thomas Dickson

$500,000.00
$7,000,000.00

.

.

19,439,222.94

«
»,

*

Real Estate

Johnston de Forest

STREET^

.

.

.

43,730,908.67

♦

»

•

#

»

one

•

*

*

all of these

and

serious

terribly

Robert L.

Cash

>

3°4>335»2^4-^

'

♦

♦

,

f

Restore

Statement at the close of business

Cash

r

tempted at San Francisco and in

........
.

4

of Condition, June 30, 1945

create

Allies in
this crucial time, while we are
working for cooperation and harr
mony, and it is liable to seriously

342, 344 and 346 FULTON

Undivided Profits

4

attitude which

an

against

prejudice

*

+.+A U

ill-

well spread against other na¬

tions.

.

YORK

NEW

opinion against

the Soviet Union.

COMPANY

TRUST

AND

BANK

HANOVER

CENTRAL

the

is

BOROUGH OF BROOKLYN

.

SENSE OF THE AMERI¬

PEOPLE."

CAN

the blood and tissue of

are

which

out

Kings County Trust Company

.

reason,

the very limitations

from the

just powers

...

.

of

esses

I refer specifi¬

cally to the Constitution and the
liberties
and
safeguards
which

international economic life, with¬

Bernard M. Culver

.

spirit which pervades our
—
exalting the proc-f

the

to

us

I

.

coopera-

by being true, each depart¬
ment to its own functions and all

power

Jarvis Cromwell

Capital
Surplus

successful

in

work

tion

realized by the masses of otxr
people that Bretton Woods, the
Reciprocal Trade Agreements and
an
International food organiza¬

co¬

nations

the

down

came

from the Fathers.

*

bind

can

We

many

One member of
cannot say to
need of thee/

no

be

operation and singleness of pur¬
pose

about

accom¬

such

politic

body

our

another—'I have

differ

which

ment

all partners.

are

things, but on one thing we can
all agree—that it is imperative
to maintain the form of govern¬

/

Vthe

and

"But, in the great enterprise of
making democracy workable, we

history.

may

used this

paragraph in closing:

have died down through the

We

a

of its 150th anniversary,

the price of liberty," we must
constantly be on guard to pre¬
serve
those
liberties for which

nation's

speaking to

Congress some years ago, in
connection with the observance

nothing great truth that governments de¬

The alternative to doing

chaos,

in

is

men

the
who,
Joint Session of
of

Hughes

the

man,

GOOD

Alternative is Chaos

is

as

is proof to the entire world
of the strength of our government
in any crisis, but consistent with
the axiom that "Eternal vigilance

the

Justice

United States Supreme Court

Vice-President Tru¬

President of

pendence" and something of the
spirit of Emerson, when he said:
"All

Chief

Americaq—former

great

truly

a

own

our

incoming

the

and

Roosevelt

"interde¬

word

the

conclusion, I leave with you
the words of one who, to me, is
In

The passing of Franklin

country.

prostrate.

world

in

conditions

for

cern

wrestling with this
a

us

Constitution

Sense of People to Prevail

Good

capacity, that they may
goods to pay for our ex¬

ports to them, we must have con¬

Those

sell

our

up

standing and practice, lies the
hope for generations yet unborn,

But, even as we prepare to aid
stricken
nations
to
reha¬
bilitation or re-establish their pro¬
the

bors.

be

security / organization,
to
act,
It should

national

will pass by a very sub¬
stantial majority," and I am glad
to
bear that testimony.

ductive

the

inter¬

an

consider¬

for

Senate

the

before

of

three separate and dis¬
tinct branches of our government,
the
powers
of none of which
should be usurped by any of the
others; and equality of all men,
under the law.
In such under¬
setting

ation,

on foreign
trade.
We
should be friends and good neigh¬

petition

whelmingly against political iso¬

and

struggle

common

a

fundamental

support.

word prophecy—"this

now a

legislation which will soon come

forget that the So¬

not

us

Hear

active

and

earnest

our

and

people have poured out their

.

may

had

prostrate world upon its feet,
to rehabilitate these nations.

blood

considered.

splendid

at

capital forever lost to the world,
surely we can unite together in
great efforts to maintain peace,
to
bind up the
wounds of the
Stricken nations, to put them on
their feet and to make a recur¬

the

leaders of the Allied Powers

of

viet

sion of Congress, and he
the

loved

of

home, and in hundreds of billions
dollars for the destruction of

lation,

1

soul
ones

of

agony

more

of

and

Woods

Bretton

millions

the distinguished

Two years ago,

lady
from
China,
Madame
Chiang Kai-chek, in addressing
the Senate in a brief extempor¬

the

and

lions

9^;

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4400

162

penses

and

Contin- '•*

Lucius F. Robinson,

,»

.

.

*

Total

Jr.

1,565,466.68

•

11896,73^*59 ^
$2,022,744,833.41

"1,124,937.33

gencies

John P. Stevens, Jr

Estate————

765,902.18

Other Assets——

349,747:59

standing „——116,636.75

$76,906,665,49

$76,906,665.49

Real

Official

Checks

Out¬

Henry P, Turnbull

There

William Woodward
Our

main

able to its

office

is

our

only office

and

makes

U. S. Government Securities

depositors; every facility and accommodation
Make it your banking home.




pledged to secure public monies and to qualify for fiduciary powers
$581,046,858.03

avail¬
'

known to modern banking.

Member Federal Deposit Insurance

are

Corporation

>

MEMBER

-

FEDERAL

:

%

•

DEPOSIT

INSU * ANCE

'

„$!!$&*■

CO K PO « AT I O N

.

•

*

j

at-

/

•,
'
J

THE COMMERCIAL & FINANCIAL CHRONICLE

100

Thursday; July 5, 1945
tim-V-v

remote possibility,
at least to a degree that .would
affect materially the stability and
something, of

Ahead for tie-

Companies?

ness.'/'; ; '

however, is somewhat remote, so

cases,.

no

ability

hedge

to

still

can

forward

look

to

a

of
relative
purchasing
power stability.
The price index
may continue to rise in the post¬
war period, but it is not likely on
the basis of present prospects to
serious alarm

cause

not

of

most

national

the

or

disturbance

The

economy.

therefore,

matter,

not

does

ap¬

to require at this time fur-

pear

ther consideration, since it is still

the

against

on

their

be

general and

a

basis

sound

a

insure

to

They

solvency.

they

period

They have, therefore,

securities.

ness

permitted

we

equity

of

amounts

large

do

in

relatively,

hold

even

They

a dras¬
purchasing

the

in

proaching its final stages and with
a sane governmental fiscal policy,

serious

estate.

real

groundwork of

alteration

to

recognition that in¬
companies must do busi¬

surance

of money is not yet suf¬
ficiently manifest, though it is
threatening.
With the war ap¬

inflation
come,
its
adverse
effects will
cover
a
wide range of business
activities and, in this respect, the
insurance companies will suffer
with, other private business en¬
terprises along similar lines. In¬
surance companies, as a rule, own
no
physical property aside from
their

The

for trepida¬

cause

power

slowly restored.

be
disturbance.

for

be

must

charge for their
services rates which give them a
to

reasonable

Otherwise

return.

be unable to carry out
their obligations to their policy¬
may

holders.

Perhaps

class of public

closely related

so

in insurance;

as

other

no

service institution

have rates been
to cost

in

Actuarial

knowledge/combined with a keen
and
trained judgment of risks,
resulted

have

the long

in

fair and equit¬

are

run

in

which

rates

All this has given more cer¬

able.

tainty to the outcome
in

tions

insurance

the

over,

of. opera¬

lines

than

business.

other classes of

volume

of

in

More¬

insurance

business, unlike that of railroads
and

industrials,

relatively

is

that overhead expenses
are maintained at "a more of less
regular ratio. Business volume on
steady,

so

the whole is certainly more stable
than that of banking institutions
or

railroads.

tation

for

But the recent agb-

lower

the

and

rates

grinding

steady

down,, through

regulation and competition, of in¬

charges

surance
as

JUNE

CONDITION

OF

STATEMENT

1945

30,

well

the

as

in

United States Government
State

.

.

and.Municipal Securities

...

Loans and Discounts

Mortgages

.

.

.

.

,

.

.

in

Accrued Interest Receivable

Other Resources

..

,

.

.

.

.

,

.

.

*

;

.

.

b'

.

.

Undivided Profits
Provision for

Liability

10,600,000.00

-

«

Ta$es,^Interest, etc.

Acceptances
Other Liabilities'* .* i b
on

.

414,520,17
*

.'

.

*,

.

V

795,160.55

;

$326,918,458.98
Securities

carried

$87,582,990.99 in

at

the• above

statement

pled/ted to seizure fJ.-S. Wor'Ijtaif Deposits of $79,665,095.89
and other public deposits and for other purposes resjuired by law.
arc

DIRECTORS
DAVID

C.

EDWARD H. LETCHWORTH

BAIRD

Vice President, Marsh &

Kcneftck, Cooke, Mitchell

McLennan, Inc.

Bass &. Letchworth,

FREDERICK BEERS
V ice

President, National Biscuit Co.

Buffalo

President, General Reinsurance

,

in which

CHARLES II. DIEFENDORF

*

JOSEPH P. ROUTH
Chairman and President,

EUSTACE

Company of Buffalo

>

-

been
*

•

:

to

y

S'ELICMAN

HAMPDEN R. TENER

■

G.JACKSO'N

•

Corporation

e

.

Sedtelarf

,

*

FRANK A. KETCH AM

SEYMOUR II. KNOX

A

k

"

over
*

*

Executive Vice

The

their

endeavors

along this

stimulated by the

under

Crum &• Forster.

President,

Government

the regulation

of

-

the
take

thority.

of rates as a
Supreme

placing insurance

interstate

-

may

recent

the

decision

Court

HENRY J. WYATT

of the Board,
Marine Trust Co. of Buffalo

have

a

result

*

Corporation.

Chairman

apparently

States

competing with one another
fire insurance rates

Federal

WAMPLER

President,
Carrier

*

"

commerce

i au¬

As happened previously

with the railroads, the surest way

MAIN

OFFICE-120

17

Battery Place

Member Federal

interested

in

the

The

vitally

is

soundness

and

of his insuring company—

success

else

when

not

the

loss

a

he

occurs

and

hold the
bag. It is a short step from com¬
petition that is keen to compel
will

company

When pre-

tition that is reckless.
miums
to

are

computed with a view

obtaining

risk rather than of

a

compensation for it, when under*rating is substituted for'under¬
writing,
history
proves
that
calamity follows."
In the record of company fail¬
„

ures,

he stated further that "there

is ample evidence

that rate

com¬

petition alone is a major con¬
tributing factor."
"The history of "the insurance
individualism

now

rugged
make a

argument that we
down the road of

go

open>' competition," he con¬

wide

of

business

"The

tinued.
ance

not

does

strong

very

should

so-called

under

business

insur¬

it should be properly re¬

maybe

garded as a public service institu¬
tion.
It would seem that the time
has

143 Liberty -Street

Park Ave. at 46th Street

drive* the

insurance

business

panies to seek protection against
ultimate confiscation by coming

Deposit Insurance Corporation

under the

when complete freedom

come

of action

be

can

allowed only in

those actiivties which are not det¬
rimental to the

As

-4

7.

*

'




to assure

make

public interest." ;

a

system of rates which
insurance
business

the

proftable.

The public cannot

in

gage

economic

wings of

a

n

1 x*

pointed

out

by-

JE *

4 * ^

**

fc

or

protection against severe
accidental losses without insur¬
ance.
The business is not

only

"affected by the public
interest,"
indispensable, If it is to

but it is

be continued

as

field of private

a

enterprise, it must be placed and
kept on a profitable basis.
Rates
should

be made flexible

to

meet

changing conditions., They should
be allowed

to

expand

well

as

as

to

contract, when circumstances
require it.
The constant political
exerted

pressure

to

lower

insur¬

ance

rates,
particularly. the
charges of the fire companies, "if
continued, may prove disastrous.
Of this, - the public should be in¬
formed.

.

The only

alternative will be

a

heavy decrease in capital invested
in

the

insurance

business,

with

the serious consequences of inade¬

insurance

quate

facilities.

hardly conceive

can

One

a more

effec¬

tive detriment to business expand
sion than insufficient provision

as¬

for

"middle road with

re¬

risks connected with business op¬
erations.
Insurance has; been "a

serted

as a

gard to rates we may have to find
floors
and
ceilings with room
enough in between to allow folks
to

around."

move

"The road

itself is not yet sur¬

"In fact, it

veyed," he remarked.

unknowable-

almost

seems

three

now

the

covering of all insurable

prime factor in promoting produc¬
tive enterprise as well as in the
undertaking of capital expendi¬
by private concerns on the

ture

basis

of

low

margins.

prospective

profit
!.">

*.

'

who must
somehow travel together-—the in¬

Effect of Declining Interest Rates

dustry, the States and the Federal
Government—have
not
agreed,

prospective

because

parties

know
where they want to go, while all
admit it impossible to stay where
they are."
and

not

do

XJnlike

yet

to

seem

railroads

public

and

not

volume

well

as

pany,

business of each com¬

of

as

earning power,

be cut into by increasing and
unlimited competition," As stated

may

who

meet

can

the. qualifications

charac¬

of their State's laws as to

ter, capital and reserves required
can launch a capital stock fire In¬

They can en¬
the business on the same basis
the
oldest and most widely

surance

ter
as

company.

experienced of any of the com¬
panies in the field.
There is
available the tabulated, analyzed

experience of all the companies
hver the years, scientifically re¬
duced to a classified rating serv¬
the mathematical

of the law of great num¬
bers over a large area and super¬
accuracy

vised by the insurance

Aside

from

officials of

actual

severe

and

rate

companies

cuts, insurance
faced with' severe

are

reduction in their earnings due to
the artificially low prevailing in¬
terest return

this

is

their

on

suffered

the

It

reserves.

income; which

of

source

greatest

which

reduc¬
of in¬

source

lines of

many

the insurance business depend for

adequate

an

return

invested

on

capital.

Though some companies
show "paper profits" due to

may

the

increase

in

market values

of

their

portfolios, this profit can he
realized only by. the sale of their
assets, and as rihe - proceeds /re¬
quire reinvestment there will be
rio

substantial/benefit

transaction.

the

from

As investment instU

•

tutions, insurance companies must
in the long run depend upon an

ample

income

return

ties.

If this

must

be* offset by

income

-

on

securi¬

declines,

it

higher under¬

writing earnings. Thus insurance
charges are related to the prevail¬
ing interest rates..
As rates in
lines of underwriting have

many

been whittled

sive

down

by progres¬

reductions

or
by expanded
policies, the decline

coverages an

in investment earnings assumes a

serious

aspect.

termining

rates

Although in de¬
(except in the

of life insurance) the incojtie

case

the States in which any company

return

operates.

supposedly not taken into accouat;
as a matter of fact, theSe earnings

business

"This

is

the

direct

Without
that system of rating, open to all
companies on equality of terms,
only the very largest companies
with the broadest experience on
antithesis

which
With

monopoly.

base

to

onerate

of

in

their

the

rates

public

could

interest

can

system of rating, all
enter .on
equal terms who

can

qualify -under

that

their home State.

the -laws

of

It is equality of

Opportunity

solvency, and in equality in con¬
tract terms, under the standard

bureaucratic; policy laws. Monopoly uhder such
■ - { conditions is inipossible."

recently

en¬

activities

secure1

Commissioner Johnson then

ridden national administration. •'

*

policyholders against; excessive or
unreasonable charges.; It is pri¬
marily to the public's advantage

has grown to such a size that

and equality before
into the net of Federal domination the law plus equality of access to
is to hatass it by cutting down adequate rates that will protect the
earnings and forcing the com¬ public against overcharge and in¬
to

BROADWAY

110 William Street

128 Chamber# Street

policyholder

ice resting upon

of ; the

belief that within a few years

*

CLOUD

commissions

line have been

'

Vice President and
*

owners

reduce

haps

Honorary Chairman of the Board,
Irving Savings Bank

HARRAL S. TENNEY

Jackson, Nash, Brophy,
Barringer & Brooks;'
*
Chairman, American Viscose

conferred

been

living basis, just as they
have already done in the field of
workmen's
compensation.
Per¬

Sullivan & Cromwell

PAUL II. JH USTED

JOHN

: property

below

EDWARD L. FULLER

President, International Salt Co.

un¬

been reported in

has

benefit

various

*

.

The Pittston Company

President, The Marine Trust

left

are

except by competition,

Insurance

SAMUEL S.CONOVER

Chairman, Executive Committee

rates

amplification of coverage.

Company, Inc.

Executive Committee

insurance

upon

through
progressive reduction in rates $nd

Vice Chairman,

Corp.

continuing con4

a

tract against future hazards.

as much to protect!
the insurance carriers against de-'
pressing rates below a safe level
to insure
solvency as to protect

come

BAYARD F. POPE

EDGAR II. BOLES

rate control is

And it is this

upon

President, Hotels
Stealer

the

'

State of Minnesota:'

tion.

full

F. A.McKOWNE

JAMES C. BLAINE, President

In¬
v

has

progressively, decreasing- for Aver
a
half century.
Much of this is
undoubtedly due to the activities
of the insurance companies them^
selves
through
research
and
through supervision and advice,
ih reducing fire hazards as they
are due to indemnifying fire losses.
Yet they have received no com¬
pensation for this service.
The

305*442,518.75;

Deposits

of

But this is merely
an
offset of the heavy losses on .by!' JL ZM.; Thomas,. the retiring
marine underwriting during the President of the National Board
of Fire Underwriters, "any group
early years of the war.
Fire insurance; rates have been of men or- women ih any State

1,525,173.38

.

Commissioner

protected from competition
through
the
possession
of
a
monopoly.
Their rates may be
fixed by State regulation, but the

rates

the last year.

$ 18,741,086.13

'.

....

at

conducted

insurance

that gains have

3,741*086.13

surance

In¬

of

and

utilities, insurance companies are

regulated

$5,000,000.00

.

;

Association

Commissioners,

vantage in forcing: insurance rates
below the profitable^ level. "The
purpose
of rate regulation and

have

field
......

National

the

surance

over many years.

reductions

undergone

LIABILITIES

Capital

been

Johnson, President of

while the
insurance
policies
have
given
wider protection to the holders.
It is only in marine insurance, a

Automobile

664,193.71
$326,9.18,458.98

Surplus

has

increasing losses

469,604.66

.

.

,

.

Workmen's compensation

insurance

414,520.17

.

a whole, show no
underwriting.
Their
$437,273,000 was the

the aggregate no underwriting

profit.

3,199,970.39

Customers' Liability on Acceptances

insurance

highest since 1926, and they show

127,325,908.32

,

.

.

of

losses

few

as

from

gains

5,270,078.65

.

..

.

.

companies,

450,000.00

.

fire

1944

in¬

last

the

over

In

decades. "■

482,399.03

.

.

.

lines

surance

124,211,062.51

Obligations.

Stock of Federal Reserve Bank
Other Securities

$64,430,721.54

.

.

.

of

many

underwriting profits in
Cash and Due from Banks

States

many

liberalization

policy
provisions
are
cutting
profits to the bone. This is borne
out by the aggregate figures of

RESOURCES

R.

"Insurance is

appears

ground

more

Newell

Rates

widespread

tion.

European countries and had to be
should

/There should

immediate

tic

practically ceased in several

■>

however,

no

confidence in the insurance busi¬

But

there

losses arising from inflation.
The danger of serious inflation,

,

:

In the matter of insurance rates,

investors in insurance stocks have

period insurance transaclions were greatly diminished or
ceased
altogether.
Many insur¬
ance concerns liquidated or were
forced out of existence.
Public
ness

;

Insurance

(Continued from page 67)
In this

busi¬

insurance

the

of

progress

Insurance-

a

Certainly there is no public,
St v.rx.UG

ad¬
T>.<

have

invested

on

been

reserves, are

in

factor

a

the

pro¬

gressive lowering of rates.
This
has been brought about both by

for

competition
the

insurance

business

among

companies

them¬

selves, and by the rate fixing pol¬
icies of the various State insurance,

departments,
Unless

1

insurance

rates

are

in¬

creased'to offset lower investment

earnings,

unless

or

business and

more

expanding

careful

selec¬

tion of risks lead to better under¬

writing profits, reduced dividends
will

undoubtedly result.
There
is, however, prospect for some im¬
provement in underwriting meth¬
ods

and

should

T- >

rate, adjustments

lead

results.

t J A

to

better

Undoubtedly
:'.J

...

that

operational
some

lc-

of the-

trz.yxir

•

THE COMMERCIAL & FINANCIAL CHRONICLE

/N-umbert4400

,kVolume; 162

smaller, insurance-

careful guarding than ever

more

in securities- rather .than to carry-

duced staffs

on

to

forced

be fewer
an

will be
There will

insurance business)

an

liquidate.
companies, operating on

with

basis,

expanded

and
and

the

better

them

that

recall the ob¬
policy"
laws
passed in several States during
the period roughly between 1870
and 1880.
These laws required

vate

carried

forces

abroad

shipping

to

own

our

managements, and they will be
able, not only to survive, but to

and to those of our allies.

earnings.. There
should, be more flexibility and
diversity in the operations of in¬
dividual companies.
They should
be large enough and command
sufficient capital to enable an in¬
dividual company to profitably

discuss

their

improve

take

additional

on

The

lines.

benefit of this diversification was
well illustrated during the present

Companies which write both
and ./marine
insurance,

war.

fire

through5 offsetting
field

increased

by

losses in one
gains in the

other, have, as a rule, fared better
than those which confined their

operations to one branch of prop¬
erty insurance.
Both large scale

by
a single company are essential to
carry on a multiple line of cover¬
age profitably
and successfully.
This will mean the gradual elimi¬

operations., and. ample capital

nation of local

and

or

concentration

heavier

a

small concerns,

of

investment in the insur¬

capital

business.

ance

in

all

to

Supervision"

say

.

; commerce;

^interstate

was;

■therefore ;"subject>

..and
the

to. "both

anti-trust*;: laws and to «: Federal
i^gulatjon;,-,This would hot be so
; disturbing ■ io>the; insurance com¬
panies ,wgre it; nol'^pr, the afac?t
Viftalr/tfte+: decision ^ihreaterisv - to
; breakfd^h'^^

lMg ^ta Wished

purpose

here to

this

aspects of

legal

the most momentous
long history.
Suffice

us,

our

fire

busi¬

state commerce, and

subject

as

their

been

number of Federal
that time had
applicable to the busi¬
insurance.
It was this

to

conduct of the insurance business

such

and
inter¬
such was

a

is adverse to the

general welfare

As

stated

''Freedom

above, the insurance

is
absolutely
indis¬
pensable to modern economic me. tion

business

of

insurance

been

not

of

ness

which

holding

latter

by

limiting ;; Ihev^applicatibix"the

•

court's; decision,: the- matter is not

and.considerable
studyVol; the -probleni with. pos¬
defihitely settled

sibly

many

readjustments will be

as a result.of the de¬
As. stated by the President

Required
cision.-

of the Board of Fire

J.

Thomas: "

M,

has gone has
our
business

problems

we

of

quarters

,,

Underwriters,
year
that

"The

brought tp us and
the
most serious

have had" in threecentury,
dust 11

a

days after our last annual meet¬

ing

Court of the
minority of
membership/ overturned the

the Supreme
United States, by
its

a

caused

ance

The

business

yeaifs

about it."

hangs

to

most

the

The results of the decision
in

are

PHILADELPHIA

revolutionary.
pointed out
might expect a 'flood of

some

ways

Members of the court
we

national'

State

legislation,

and

litigation

NATIONAL

predicted that
that decision would require 'an
extensive
overhauling of State
and

legislation relating
and supervision.'
-

taxation

to
•:

/ {Mand?

an</

fie

.

"That the apprehension felt

the States, and the
justices
was
well
founded, is supported by the rec¬
ords and report of our Committee
on
Laws,, which show that the
flood
of
litigation has already
business,

the

y/twn tti

r/i

by

,

%'pantzwJ J<90$

dissenting

-

that

and

started

extensive

over¬

State. taxation .is .al¬

hauling .of

,-

»;

i

>'

•

v. ,*»•«

Statement

ready under way," and he added

addition to making, clear the facts
about our business, we have, an

r7,

Y:

pressing

upon us to
business to two new
sets of factors. One of these -en¬
adjust

•'••V

n

.

' '
•/'.

•••••
-

V.Y.-

.'/*

;

/Qsh and Due

the problem of meeting

compasses

conditions

new

,V-

./••

„,,v.

ILIS O U R CI S

A
; \

•

§

is '

from- war to

conditions of

This requires
the services

^perform.

,

business

in

peace

State, County

and - to

•

- •• •;%.*'/'■

•

we are

.

"s ■}

;

.

■.

.

,

.

.

.r

Accrued Interest Receivable

for¬

,

;

,

Loans and Discounts

accustomed to

.

,,

;.

'i
/.

$182,616,905.19

.

.

.

. .

.

^505,133,752.92

;

-

and Municipal Securities

Other Securities.

peacetime operation.
careful scrutiny of

It requires5 also

from; Banks

;U. S. Government Securities

to the change¬

and industry due
over

4

our

.

ithe

,,

of Condition, June 30, 1945

In

"fundamental.

more

even

«

'

-14,220,391.83

v >
»

.

.

85,951,669.10

new

Customers'

services that a peace¬
It re¬

time American will need;

practical research antici¬
the needs of tomorrow
we
are
performing our

quires
pating
while

duties of today.

"The

what

other

we

business

to

Buildings

.

,

.

%

.

'

.

326,358.17
100

.

$.827,012,146.28

><?..■

factor

encompasses

to "adjust our
the Supreme Court's

must

;,v:' V

Liability Account of Acceptance^

....

Bank

!
,

2,570,361.98

.,

ward-looking imagination in de¬
vising

■

36,192,706.09

..

V,

do

The

LIABILITIES

Capital Stock (Par Value $20.00)

recently enacted by Congress.
National Board of Fir.e JJu-

every

pertinent
we. had in

derwriters has taken steps

Surplus

to ac¬

.

«bare., skeleton i force in order that
their long ° «v^rieoee and /high
.

.

Dividend

.itechnical ...knowledge.;and. .skills

pleted, staffs .of-

member

our,

com-

panies wee^ wrestlingjwith .all the
problems

incident

.

to

the

map-

Velpus speed-up' in

war

tion, •;for

hazards rthat

^

grew

f

the

-.new,

produc¬

put of; this:had; to ,be ;safe-

,guarded.-/It

came-

when :the .in-

the

to

-conditions confronting, it"
There should: be

.might be/put at the- full and free

disposal;our ; military -forces.
If cpme when /offieers:and:the de-

promptly

no.

.

.

/

;

28,000,000.00

V''

..

.

.

.

(Payable July 2, 1945)

V

.

.

• :

v

.

.

.

.

.

;.

,

United States

3,087,078.87.

.

.

*;

875,000.00
;

;

..

116,464.76

$4,439,444.93

Less Amount Held in Portfolio .3,483,290.77

Deposits

11,006,923.57

.

956,154.16

' :
Treasury

v

.

$146,757,910.68

.

.

622,212,614.24

...

trepidation

.

All Other

Deposits

.

768,970",524.92

jon the part of holders of ,in?urance

stocks regarding the outcome

Of the
It may,

indeed, have a beneficial

effect in improving
,a

$827,012,146.28

Supreme Court's 'decision.

number

toward the

of

the attitude of

State

Commissions

insurance companies.

Philadelphia, Pa.

It will bring home to the public,

Mr. Thomas intimates, a real¬

as

ization that insurance, as a field

enterprise,

s^ection-;, apd \prf»teetion/ vol .the

of

property, of wur citizens.,at/home

profitable .to. be effective.-




.

.

.

Acceptances

new

.

.

Unearned Discount and Accrued Interest

propriate methods of proceeding
with the. task of conforming the
business

.

.

-Reserve for Taxes

.

eal staffs /had? beep reduced, to a

.

Undivided Profits

re¬

$14,000,000.00

^..

.

private

must

%e

State

-

.

Member of the Federal Deposit .Insurance Corporation

whq
say
i"

.

by the States has been evolution¬
ary.

complish this difficult'task "and is
engaged at the moment in bring¬
source and energy
our
companies had: been; thrown into ing about this adjustment as rapthe winning of the war.
It came idly.as possible. On April ID, last,
When, our manpower- had been as you all know,' the Board in
drained—as had that of all busi¬ special meeting adopted a resolu¬
tion asking the Executive Com¬
nesses, even though directly en; gaged
in production of munitions mittee to study the legal and
and supplies for war.
It came practical aspects of the new de¬
\yhen our .engineering and techni- velopments and to recommend ap¬
when

came

•

most concerned and

have

regulation

its

and

law

the

the legal basis for
the conduct of our business.
It

,

are

should

given

policyholders

the

decision and to the new insurance

over

;

who

to

insur¬

the

of

development

ance

century—precedents that formed

«.

satisfaction

so

precedents of three-quarters of a

,

supervision has not

only been efficient but has

apprehension to the insur¬
business and to the States.

much

(obligation

has.g^

national basis, in the

on

Jaws which up to

Is

l<i&. 1 he';;r.^tatesj•>;"the" Federal•
k Gpyernmentri, /Although 42bhgress

main,

a

State

control

book,

always

effective

fied in order to procure

Fear":

from

80

years' experience - With
supervision.
It has1 • been
constantly improved and should
not be scrapped.
While there'are
some things which must be recti--

"The threat of Federal regula¬

-

solely

State

safety mini¬

a

great

a

of the indi¬
But we have had

States.

vidual

years,

stated in his recent

mum,

and should be avoided.

below

rates

that it is "our duty in this respect

£ crostly:'readfustm^1s;,ahcl.to. place

nine

for

State

is

the viewpoint

over

New

in

Insurance

tion and cannot be viewed
from

legislation, the laws
generally repealed.
In fact, the insuring public real¬
ized in the end that any legisla¬
tion
detrimental
to
the
sound

acted

where it crosses State lines,

Insurance

background

our

national and international institu¬

Louis H. Pink, who was Super¬
of

without

character.

up

:

intendent

start

to

supervision, it would un¬
doubtedly be partly Federal iri

inclined to assent to this socialistic

amounts of cover¬

of

sword

were

of State

who
was
instrumental
in improving
and reforming insurance super¬
vision, and who throughout his
administration, during a depres¬
sion period, insisted that insur¬
ance
companies should not cut

have

commerce,

was

public, fed

the
we

to devise a system of regu¬

lation,

that the
with "too
government in business," is

much

to pay

anew

attracted

the function must
over
by Government,
on,,

does not appear

it

York

they would constitute violations
of the law.
It also held that the
business

And

American

portant companies withdrew their
business from the States that en¬

proven

were

taken

be

If

Damocles.

If pri¬

trend.

guilty of any violation
of the law, but rather than if the

charged

companies

be

cannot

like

overhead

form

present

without it.

capital
it

its

in

exist

carry

in the event of total destruc¬
tion of property, regardless of the
actual loss.
Because many im¬

the decision did not hold

allegations

insurance

the maximum

was

ness

to

"valued

age,

that the stock fire insurance

and

A bombshell was hurled in the
midst of the insurance business
when.i last: .year; ■ .the; ;Supreme
Court /overturned the decision in
Paul Vs: Virginia,/and/decided, by
a ; bare
majority,, that:insurance
;

our

the

case—to

that

Federal

and

State

"It is not

Civilization

com¬

One needs only to

noxious

the great plants
and terminals,

warehouses

insurance

cannot

the produce of farm and

cover

against

panies have occurred in the past.

re¬

our

to be stretched

had

mine and forest,

plants and more efficient

agency

That" service by

before.

to

school needed attacks

at work and at

companies and and

those which were .organized since
the last war (largely to speculate

,

10}'

♦

and

The«Status ©i Cartels :
In Post-War Europe

1

-

(Continued from page 72)
in the European theater,
from, putting any of them into
actual operation. What is involved
in
"dovetailing" our policy to¬
ward international cartel's with
to ensue,

that of

effects
an

What will be the
and upon us
American policy or set of
Europe?

them

upon

the

policies that flies directly in

tradition? What
chances of agreement with

face of European
are

the

Must our course of ac¬
determined, willy-nilly,

Europe?
tion

be

by the predilections and desires of
European businessmen? What can
we do, and what ought we to do
with German cartels and combines

trappings, and in the
matter of German participation in
international cartels? I can prom¬
and

their,

difficult
governmental
policies democratically determined, and this in political (even
"military") as Well as in economic
much

and

render

the

execution

more

of,

Cartels lend themselves as

areas.

governmental

useful

dependably

aggressive,
I do not
believe that it is possible to recog¬
nize and to encourage cartels and
then effectively to control their
operations by democratic govern¬
to

only

instruments

dictatorial governments.

mental

processes.

believe

I

their situs

-•

that,
the

or

.

irrespective
area ox

of

their op¬

erations,. Cartels are neither more
nor less "natural" than any other
form of market organization or
control.
In this connection I am
of

continental

Europe

ise you no final answers to these
and related questions, but I should
like to talk with you about them;

thinking

and I shall have some suggestions

ica, where our wide markets and
developing economy have, at least
until the NBA, dictated policies
of competitive
expansion rather

to make..

First, just to clear the atmo¬
sphere—or to color it identifiably
—let

holds.

constantly shifting, and that car-

confess to my personal

me

those

I

tion.

I

cartels.

respecting

much

of the United States of Amer¬

as

than

prejudices

-

Great Britain fully as

and

of cartellized contrac¬

that particular
economic, social

believe

do not like them in times of war

in times of peace. 1 believe they
conduce to restriction and inter¬

of

combinations
and

or

maldi-

ruption of production and
rection

in

of production

a

world

that needs more and more regular

production, better directed. I be¬
lieve that their operations run fre¬
quently

at

cross

with,

purposes

political conditions and cir¬
cumstances
give
rise
to
and
the
development of
cartels at particular times, and in
this regard I have most particu¬
larly in mind depressions, nation¬
alistic trade policies, and govern¬
mental preparation for military

strengthen

fact

peoples

status
suggest
the cartel occupies anywhere

that

fixed, historically" determined,
unchanging and unchangeable po¬
sition. Traditionally, and for quite
understandable
reasons,
cartels
have flourished more in certain

of

is

Great

in which we
do business.
So
are
concerned we

want to live and

far

cartels

as

Britain, " favor

.

certainly do not start with a clean

holds

no

cartels

or

slate, and we cannot wipe it clean;

Surely most of What has been said

I

on

have

undertaken
by other
destroy them; Great Rritr
ain has accorded them legal sanc¬
tuary, but has until very recently
laws to

exposed

the

with

the

situation -confused

such, forces
ernment

by

patent laws,, gov¬

as

programs, the course and

Conduct of

marketing and adver¬
tising/and shifting economic con¬
ditions generally together with a
host of other factors,' there has
Come to, be an actual state of af¬
fairs, business-wise," which differs
from

that

much

more on

in

the other country
other grounds than

the basis of fundamentally dif¬
ferent approaches to the problem
on

t>f cartels and
countries

competition. In both
is

there

a

readily

dis¬

cernible disposition on the part of
businessmen to protect, their do¬
mains from economic dangers and
threats—a disposition which

this

share of the market in which he is

Cartel Problem Will Remain.

to

is

,} If the United States

subject

in recent

months

in the extreme

(I

guiltless in
myself—but until
evening I have not had occa¬
respect,

this

sion to commit myself

directly in

,

with

dealing

>■.

is

fully

as a

Britain

Great
been

■

traditionally
than

in

the

United States,

toward cartels, but
light of the total situation in

in

which British law has been called

it is by no means
people of Great Brit¬
ain have in fact taken a position
with.reference to the proper! or¬
ganization of production and mar¬
keting that differs substantially
upon to act,
clear.that the

side, and with her aid and
acquiescence of

the

market

as

a

dwindling, the disposi-*
strong ; indeed-^-witness
the British' cartel (and the

poth

-

.

American

NRA

will be breached. Individuals will

The * law

has

tolerant

more

If

is

is

in

cartelization.

tive

Whole

refer to
land of ineffec¬

correct, to

as

Great Britain

interested.

in
paradox¬
ically, if the market situation be¬
comes bad enough, the agreement^

ineffective competition, it

land of

,

our

can be char¬
all realistically as a

acterized at

the
special
problem of the evening, I will
suggest* that the status of cartels
in Great Britain and the status of
cartels in Germany are focal.
It
is with Great Britain, more' than
with any other single nation, that
we shall want, if possible, to de¬
velop a common positive policy;
and if we can win Great Britain
In

them into

tion

X'l':

writing).

•

.

mmmmmmmmmmmmmmmmmmmmm

the ;

developments

break loose and will seek by price"
reductions to maintain their tradi-'

tional volumes of business at the1

While

of the shares remaining
competitors (their erst-.
collaborators).
What
I*

should

like

expense

for

their

to emphasize is that
position (or positions);
on cartels, should present no mys-.
tery to American observers or,
American
negotiators.
Cartelthe British

wise, we talk the same language, •
respond to the same stimuli, .and,;
allowances:, for

divergent;
mechan-'

over-all

achieve

isms,

and

situations

economic

YORK

-

thirties—although,

With

FULTON TRUST COMPANY
149

mercilessly to

have not been wholly

govern

Russia, can work out a desirable
cartel, combine; and patent pro¬
gram within Germany,- we*shall
have come well to grips with our

results

remarkable for their simi¬
larities than for their differences..

more

(Singer Building) new york 6

broadway

1002 madison ave.

them

what I should like
see done, and what I believe it
possible to do.
i

tions

the

has been loose

with at least the

NEW

have

leads
agreements designed to
conserve; for each his traditional

believe, however, that it is pos¬
sible for us to write quite legibly
above the smear.
These predilec¬

to

OF

we

petition..' In each country, within
its) particular • framework,
and

Competition?: I very " much fear
(hat history gives us no clear an¬
swer, and that no clear answer is
possible- save in terms of alterna¬
tive sets of assumed conditions;

world

economic

of

and

.

spelling out the kind

Broadly,

own.

destructive winds of foreign com¬

the prospects?

are

our

grip and

toward cartels, and
particularly toward an agreedupon
anti-cartel < program; and
what■ is it. likely to be?Does

destroy their blighting effect. And
we can start at any time..
Right
are

with

from

given cartels every encouragement
by excluding foreign competition,

fail with

the .British

to root them out sufficiently
retard substantially if not to

how we

we

What, really, is the attitude of

area,
to

What

barred.

I believe
possible, in, any

fully

and

attack,

than in others, but
it

that

be safe

will
Our1

If

backs.

Britain, and if, for whatever
reasons,., we cannot carry through
in
our
post-war -dealings with
Germany, we shall have to, come
at the problem with a new plan

a

areas

it

loosen

ever to

our-

Great

is meant thereby to

it

if

us

turn

mistake to refer to a cartel

when

the time

to

for

it is a

areas;

or

the way toward a

on

solution: in my view
of things the cartel problem will
be with us always—I do not look
permanent

shifting forces, which breed them.
In my judgment, cartels are not
peculiarly indigenous to any par¬
ticular

the

some effective
Note that 1 do not say that

applying

shall be

we

stable, either in
philosophy, than the

in

or

to

way

these

tels are no more

'

of

that

cartel problem and be well on

aggression.
I be¬
conditions are

economic

lieve

Thursday, July 5, 1945

& FINANCIAL CHRONICLE

THE COMMERCIAL

102

Chartered

(Bet. 77th & 78th Sts.) new york 21

'C'Y;

17.99

British .Attitude

Y y.a

I have referred in another con¬

nection

the

to

fact that formally-

"Britain's attitude toward restraint;

JUNE 30,1945

CONDENSED STATEMENT,

'

;

■

i

1

.

,

i

fa

.

t

a

of trade has for decades been con- *

ssaa

Cash

on

355,234.38"

Cash

on

Condensed Statement

Deposit in Federal Reserve
7,351,209.98

Bank of New York

$45,845,805.39

554,136.14

Deposit in other Banks.....«

Manhattan Company

of tiw

RESOURCES
Cash in Vault.................... .$

••

■

,' -i:,

Demand Loans Secured

Federal Reserve Bank of New York Stock r..

♦>.

340,368.48
120,000.00
1,322,891.58
1,141,920.00

. .

............................ • *

Time Loans Secured

by Collateral.
Loans and Bills Receivable
"........
Overdrafts—Secured $11,919.40—Unsecured $25.43
Real Estate Bonds and Mortgages
Real Estate (Branch Office)............
►

# •

•

Accrued Interest and Other Resources,,....

•

181.94

100,000.00
152,352.88

• Ml

e 14

-

LIABILITIES

■

$43,820,930.73

Depositors...

Dividend No. 163

U. S. Government

Other Public Securities

.

.

,

8,355,505.68

»

,

25,826,713.12

.

*

.

i

394,740,325.84

•

I

.

#

.

.

.

f'*

,

.

.

Loans and Discounts

Real Estate

:

.

Mortgages S

Banking Houses Owned

*

v

•

Other Assets

•

«

•

•

*

Capital (2,000,000 shares).

,

.

.

3,397,662.68

o'donnell iselin

DE COURSEY FALES

.

.

.

«

•

.

.

«

♦

•

.

;

Payable July- 2, 1945
.

......

V. CRUIKSHANK

30,000,000.00

.

Y,

V

.

,

V

58,907,063.27




PERSONAL

.

.

500,000.00

'

lating* recognized, conventions as1
maintaining association-fixed1
prices.
But, while British pro-T
ducers have played with the idea
of 'association' for many decades,;
to

the privilege of controlling prices,*
output, and markets has really had;
little meaning for them in terms
of actual results.
England's cen->

policy

of

.

.

.

2,107,002.99

for Taxes, etc.

4,511,327.42

,

.

.

.

.

$1,213,922,068.91

WALTER N. STILLMAN
other purposes;

&

$275,072,359.29 are pledged to secure public deposits and for
aiid certain of the above deposits are preferred as provided by law.

System

the

Cartels Not Indigenous

4,143,564.84

.

.

Charles s. McVeigh

Deposit Insurance Corporation

or

achieve

_

#

.

Other Liabilities, Reserve

futility, of seeking,
profits by restricting
output and raising prices."

ducers

1,143,753,110.39

.'•*»<
.

CHARLES J. NOURSE

TRUSTS

payment as the price of
abstaining from putting him on:
the association 'stop list' for vio-:

money

to
.

.

Member Federal Reserve

IN

(whether or not a mem¬
association)
for a

the

of

effective reminder to British pro¬

8,907,063.27 $

Of the above assets

SPECIALIZING

-

free foreign
geograph~;
position have served to es-tablish low-standard continental
competition as a continuing and

Acceptances Outstanding.

stephen c. clark

Member Federal Reserve System and Federal

a

ical

Certified and Official Checks.

RUSSEll!

charles s. brown

•

$20,000,000.00

.

.

.

Deposits

John A. Larkin

HENRY W. BULL

••

83,085.67

1,803,652.85

trader

ber

legality of

association on'

trade and her exposed

arthur j. morris, President

charles scribner

;.

a

tury-old

edmund P. rogers, Chairman of the Board

RUSSELL E. BURKE

Y

•

LIABILITIES

DIRECTORS

E. townsend irvin

>

$1^13,922,068.91

Dividend

FRANKLIN B. LORD

•

Anticipatione)
•

Undivided Profits

BERNON S. PRENTICE

•

»•

Surplus

Stanley a. sweet

12,543,063.29

V

»

5,183,248.71

OF

4,883,191.78

•

.

Liability for Acceptances

1,183,248.71
$49,336,951.23

BOARD

553,899,187.05

#

,

.

208,389,680.95

.

.

.

.

$

•

,

,

.

.

Other Securities

4

♦

302,771.79

Contingencies..
Capital.......................... $2,000,000.00
Surplus.,........................ 2,000,000.00
.......»,....

Obligations Y. Y:

30,000.00

Payable July 2nd, 1945......

Reserved for Taxes, Expenses and

Undivided Profits..,

A recent case in Great'

sustains the

demand by a trade

Cash and Due from Banks and Bankers

Customers'
Due

The British

Britain

";VASSETS

Other Real Estate Owned.

11,944.83
301,486.13

$49,336,951.23
*

own.

contract.

890,250.00^

by Collateral

Municipal Bonds

Other Securities.

of Condition

of June 30, 1945

as

U. S. Government Securities........36,694,974.89

State and

different
from
our'
people are com¬
pletely unaware of a 'trust' prob-;
lem. England has no antitrust law,)
and
agreements
between
pro¬
ducers to control prices and out-'
put and to divide markets are be-'
lieved enforceable in the English*
courts under the ordinary laws of-

spicuously

Member Federal Deposit Insurance Corporation

BANKING

mmmmmmmmmmmmmmmmmmmmm

My conviction that cartels are
indigenous institutions
and.
that in their coming and going

not

they reflect shifting

economic and

political situations and opportuni¬
ty's, is bolstered very substantial-,
ly by my interpretation of the
sequel which the decade o£ the
'30's provides to the story of the
sad" fate suffered by British car¬
tels in the long decades prior to
the '30's.
In 1937 I wrote in the
following vein:

"But the [legal]

THE COMMERCIAL &

Number 4400

162

Volume

condemnation of anything beyond

their rowboats with individual
and going over¬

up

restraining trade]
has been smoldering, and with the
appearance in 1932 of a new trade
policy on the part of the govern¬
ment, 'restraint of trade' has been
[of

privilege

the misuse.

The cartel, the argu¬

government

ment runs,

is entirely neutral in
just as banks or

outboard motors,
side.

It will require

„

these

coercion to make the British car¬

anything

movement

tel

other
kinds
of economic
agencies are neutral; the fact that
any of them can be perverted does
not lead reasonable men to con¬
demn the whole array of institu¬
tions out of hand.
The answer

stable and predictable than the al¬
legedly chaotic competitive situa¬
essential condition
tion from which it is held out as
.making it possible for private in¬
an orderly, rational escape.
Lan
dustry
to
inaugurate effective cashire will
always be as full of
.schemes of control has been pro¬
competition as of cartels, operat¬
vided by the Import Duties Act
ing and incipient.
of 1932 and the activities of the
; Import Duties Advisory Commit- U. S. Must Oppose Cartel Policy
tee under the terms of that act.
I
am
aware
of recent pro¬

transformed from a hope to an ac¬

tuality. The

to

Britain

has

now

substantial

a

It

tariff, and behind its protective
1 walls industrialists are having the
time of their lives tinkering with

economic system,
giving
vent to fixations and repressions
penned up for generations, and

; their,
.

,

.surprising themselves

provides the essen-

"The tariff

'

with their

?

[ingenuity.
'

condition, the

tial

long-continued

! depression and the government's
defense program have furnished

British industralists were

stealing each

Telling arguments, however,

;

.

.

*

;
'

J
*

1

and, like industrialists everywhere, they saw
price-cutting and other incidents
of the depression only as .com¬
petitive excesses which could and
should be curbed by simple rules
and restraints.
The British government, feeling keenly the plight
of unemployed capital and . labor,
sware of the growth of nationalism; throughout the world,' and
face to face' with the fact;, that
preparedness for modern warfare
means
continuous .and complete

it

to

its

and

[ units

sented by an
'

ered to speak
*

ting,

a

similar

our

determination

even

found

program

association empowfor and to commit

and all of its

acquiescent.
;
But the- signs of reaction were
even then becoming apparent, as
I, with my fine gift of hindsight,
different or

f

*

'

realize. The
Import Duties Advisory Commit¬
tee which had shunned govern¬
mental responsibility for the ac¬
tivities of the fine brood of cartels
which it had been hatching was
ready by 1937 to report that both
industry and the public were pre¬
pared to accept a "general over¬
sight of the policy of the [cartelized iron and steel] industry by
an
independent body looking to
the public interest in its widest
sense."
There was still no in¬
dication as to how, or with what
probable degree of effectiveness,
such an independent body might
be expected to operate, but it is
significant that even while car¬
telization was just getting under
am now

'

in position to

misgivings were arising
degree

sufficient

the movement. But
er

pulled

covers

a

many

completely conquered Ger¬
will afford us to pull up the

whole institution of

the roots.

cartels by

doubt

up

over

the

courage.

So far as

nally

BANK

/

esovrces

;

ther. word

to

close of my

say

on

Due from Banks

this.at the

TOTAL

talk.

may

in

of even great¬

mak¬

handful of ominous

I

Deposit Vaults

•

•

.

»

.

.

♦

<

558,497,656.

•$
•

267,833,208,

,

$ 826,330,865.02

.

.

•

«•

.

.

Bonds

.

.

.

•

,

•

2.608.100,476.
253,873,771.

•

.

•

105.462,204.

V

•

•

•

•

•

•

«

!»

.

•

....

.

«

»

.

/

•

>

..

.

.

Other Real Estate Owned

•

•
.

,

-.

•

,

•

...

.

.

Customers' Liability on Account

Security and German Cartels

.

i

.

Other Resources

curity. It has been demonstrated
time
and time- again in recent

«

.

TOTAL RESOURCES

.

.

.

.

.

%

♦.
♦"

.

♦,

V

.

*

14,889,953.'
'
'
24,794,172.1

*

'

•

f»

*

428.803.1

j.

••

1

10.525.975.1

•

....

* i

931,247,699.1

'
,

.

■-+:.

.

•

.

6,092.600.
r

•

* J *
.♦

.

#

of Letters ol Credit#.

Acceptances, and Endorsed Bills

the angle of se¬

v

104,319.*
a

;

months, and 'certainly to my own

complete satisfaction, that cartels
and combines and patent

contracts

employed skillfully and
successfully by the Nazi govern¬
ment as instruments of economic

have been

penetration, mili¬
and sabotage, in
Europe and in North and South

and

political

tary intelligence
America.
with
""he

I. shall not belabor you

specifications and examples,
horror

stories

ofV chemicals,

drugs, medicines, hormones, ti¬
tanium, optical and aircraft in¬
struments,
dyestuffs, munitions,
aluminum, matches, potash, alka¬

lis, synthetic rubber, magnesium,
plastics, glass, and of I. G. Farben
and its ilk, have been told by

discus¬
Berge and Borkin and. Welch and
These
Edwards, and in scores of articles
years were relatively prosperous,
and in testimony before courts
when everyone could live com¬
and investigating committees. To
fortably under the cartel "big
stamp out Nazism and. to. prevent
top," and when the memories of its resurrection it will be neces¬
the jungle competition that pre¬
sary to free the world of the pos¬
vailed during the years interven¬
sibility that these devices 'shall
ing since the close of World War I ever again be available to the
were still present and impressive.
German people.
On security
But
when
economic
prdspects
grounds alone the cartel in Ger¬
once more turned gloomy toward
many and German participation
the close of the decade, the break
in international cartels, together
was
on,
and even
newspaper with German international com¬
stories of disaffection on the part
bines and German participation
of actual and prospective cartel
in
restrictive
patent
arrange¬
unfamiliar word in
cartel projects/

.

Bank Premises, Furniture, Fixtures, and Safe

of economic welfare.

on

•

.

Accrued Interest and Accounts Receivable

grounds of security is so
thoroughly congenial on grounds

word

•

•

...

Loans and Discounts

sary on

a

•

•

Other Bonds and Securities

add that it' is delightful to

Just

«

•

«

Stock in Federal Reserve Bank

tlnd that what I regard as neces¬

.

•

State, County, and Municipal

German participation

international-y cartels—and

in

CASH

billy guaranteed

capable one, is? Germany. For se¬
curity reasons; we cannot avoid
dealing positively; with German
cartels and

.

United States Government Obligations, direct and

problem, and an ines¬

Our main

>-

Federal Reserve Banlc

her out. I shall have a brief fur¬

of

members

became not uncommon.

when cartels
most allur¬
ing prospects of a safe, if not com¬
fortable journey through stormy
seas, a lot of people were rigging
the

very

time

holding out their




ments, must be done away wittu
It may be argued on this
that it is childish to permit
anger over

strument

point
one's

the misuse of an in¬

or

device to lead to

a

and coopers

(Continued on page 104)

of Condition June 3 0, 1945

Cash In Vault and in

pro¬

the

to have the consent

very

am very sure that we have it
quite within1 our power to keep

oiir

control inter¬
of Germany we shall have
entails

gram

STATEWIDE

Condensed Statement

her ears.

international
Here is the

physical core of our problem, the
real festering point.
We will be
on
hand and we will have the
means—if we have the will and

I

protests, penalties were being ap¬
plied against outsiders and a few
rebellious members were ■ being
"told off," and "compulsion" was

were

of

suspicious of its activities.
And in conclusion on the point

much whether she
will be found there, in fact, and
I

outspoken recalcitrants during the
middle '30's, although even then

At

with that of the British in
A democratic govern¬
ment, if it recognizes and accepts
cartels cannot decently even be
'30's).

CALIFORNIA'S

and

home

their driving force and in¬
spiration, I should like to take
advantage of an opportunity that
can
come
only rarely on this
earth—the chance which ihe fact

many

the

principal

their

been

source,

necessary,

Great Britain
allegiance with us.
was '.i curling
up
in the

Britain

actual response of many
industrialists to the car¬
telization trend.
There were few

sions

tels

that democratic

proceed,

to

'30's; industrially she was spent.
Post-war Britain, revitalized and
in a free world economy, has no
business in bed with the cartel

British

not an

private international car¬
and because Germany has

actively into

ing, is the

there were a

I suggested earlier,
governments can¬
not
control cartels, and cannot
use cartels (contrast the govern¬
ment cartel relationship in Ger¬

thing which

end

I should like to see an

all

to

chance of bringing

au¬
for curbing

weight for the point I am

cause

against the private cartelization of
world
trade
has
an
excellent

to prompt

thoritative suggestions

perverted it.
And I
re-emphasis some¬

ends—not

would add for

demonstration of

unilaterally 'if

even

.

way,

Cartels

stage; and in such a set¬

members." I
noted that public opinion, almost
unanimously, was approving, in¬

each

Germany's Defeat and End of

enemy

trade will

to facilitate world

set the

British industries be
'

an

take positive meas¬

trade and to

at

ready

tool

blockade and to re^But I would be less than frank
duce the danger of loss of for¬
eign markets. These are normal if I did not concede quite openly
features
of cartel operation: if that it is not alone on security
that I base my case
the Nazis have made warlike use grounds
of the cartel let us say at most against German cartels and Ger¬
Be¬
that they have adapted it to their man participation in cartels.
of

barriers

ernmental

that
organized as
that each be repre-

essential

provisions can be oper¬
impair the effectiveness

keep down gov¬
to free world

break down and

ures

to

compulsion from of security, I would add that I
government, from cartel re¬ am concerned not only with pro¬
strictions and obligations) to pro¬ tection against a resumption of
duce to capacity and to withhold Nazi activities but, more broadly,
eliminating
through
the
information
from
members
in with
other countries. .Restrictions on eradication of private cartels gen¬
market areas, a normal feature of erally, one of the major instru¬
cartel operations, serve easily and ments available to any govern¬
effectively to stem the flow of ment which seeks aggression and
strategic' items
into
countries is smart enough to recognize and

government of the United
to do its utmost both to

States

aggressive, dicta¬

aid

ated

efficient

hand.

field

tual

an

use

likely to be met later
of battle; and mu¬

are

the

on

its

competition rather than to¬
ward cartelization, is the logical
argument of events.
A demon¬
strated determination on the part
of the

an

which

member, under

will

tion of

own,

of
industry
during times of peace, has

and

of accademic

form

the

These are exactly the

government, with conquest
in its eye, would like to see ac¬
complished in lands other than
its own—just as long as its own
members are free (under the typ¬
ical cartel clause that releases a

presentations; what Britain needs
in order to muddle in the direc¬

tired of

'mobilization

take

not

and to

torial

ions, and I still say that the Brit¬
counts is uncer¬
tain
and
open
to
argument.

other's businesses by

ruining their

ends which

ish opinion that

J

,

to competition

slow down production

four walls.

wholly receptive to cartelization.
I am also aware of contrary opin¬

[ the immediate motives.
By the
end of the
depressed 'twenties
.

by

hostile

ments

designed

promote the interchange of technical information within its own

associations—pronounce¬

dustrial

is, by its very nature,

to

Lord McGowan
and other leading British indus¬
trialists and representatives of in¬

nouncements

this, it seems to me, is that the
neutral institution.

cartel is not a

.

,

matters,

any

more

103

FINANCIAL CHRONICLE

I

mimii,
ttDEIUl

DEPOSIT

INSURANCE

CORP.]

THE COMMERCIAL & FINANCIAL CHRONICLE

104

in character from,

different

fie Stalls #! Cartels

far

so

I

as

gether

cepted institution, whenever al- 1 grees of prosperity, and German
policies ran counter to the cartels have lain at the center of

desires of the members.

cartels in the same economic set¬

In Posf-Wai

Europe

(Continued from page 103)
tion

of the other

this

ernment since it came into power,

control powers;

be

to

convince

we

allies

our

of the

soundness

the

war

itself and the indisputable

terms of the peace

(and unrecognizably)

completely

But this does hot alter the
character
of
the problem,
nor
need we regard these first steps
as
different in
kind from the
pose.

remake the

of Germany much more

economy

pro¬

that must fol¬

will combine to

low

the

of

we

course

inevitable devastation, of

and the

do not
have, at the moment, a clear
field, and that our first steps must
simply that

means

than will the eradication

or

dam¬

all projects which any of us may
have in mind for execution
in

domestic cartels. Note
that I say eradication "or damag¬
ing." I am quite prepared to ac¬
cept the proposition that it is im¬
possible for any allied govern¬
ment
to
impose
a
completely

Germany and which call for joint
action on the part of the allies as

upon

steps

and

which- we

aging

allies

our

must take first in connection with

a

group.

.

been

an

effective

-

elimination

of

agreements

a n

as

we

and

all

the

absolute

combinations,

d understandings,

known, and German domestic car¬

secret

tels and combines have been basic

the first to cite the history of our

to

N

field.

Here

is

open;

and I would be

anti-trust laws to support the
proposition. Yet I would point to
that same history, and I would
add to it the story of the trans¬
formation by law of the cartel in
Germany, both under the Repub¬
lic and under the Nazis, as a
demonstration of the equally valid
and far more significant proposi¬

Germany's activity in the in¬

ternational

•

■

own

reason

enough to seize upon the occasion
to strike directly, and as power¬
fully as possible, at cartels within
Germany, even at the cost of hav¬
ing to plead guilty to the charge
of interfering with the "tradi¬
tional" economy of the country. I
will have a word to say in a mo¬

tions

ment about how "traditional" the

that

laws

are

not

without

effect, and that cartels hounded
by the law, driven from pillar to
post, and forced always into a
defensive position are altogether

cartel really is, in Germany, but I
will confine myself now to the
comment that both the Nazi gov¬

..v.

NEW YORK

time

endorsement

authorities.

meled" forms of business organi¬

which

zation

Nazi

the

laid
its
them—that in

upon

the hands of the Nazis

they have

become

agencies for the execution
of government con¬
trol—the direction of production
of

measures

and
and

of

allocation

the

materials

products—and that
wise

them

to

to

accept

cartels

might

we

own

our

economy,

will

we

and

by Allied
Finally, we shall un¬
use

questionably undertake, if only as
a
measure
absolutely necessary
from the standpoint of security,
the very substantial breakup of
major German industrial
com¬
bines. It will scarcely make sense
for
us
then
to
permit openly
through the instrumentality of

before

were

government

hand

dread

they

convinced (which

whatever status these cartels may
otherwise have, the prestige of

as

.

the

achievement

which
contemplate

poses

them,

adapt
purposes and

bidden

we
as

of

pur¬

unwilling to
the fruits of. for¬
are

Let

combines.

us

by all

salvage such cartel records

means

discover and make such

as we can
use

of them for purposes of

trol

as may seem

con¬

fitting (together,

but

incidentally, with the services of

hand.

cartel officials whom we may
to be reliable).
But let us
employ records and men alike

simply taking advantage of a
working
mechanism that good
fortune has provided
ready at
don't

I

how

know

any

deem

many

can

apart from the cartel institution
as such." We will not, in my
judg¬
ment, forward the cause of ef¬

find, or out of the rubble we can
create better—and certainly more

fective Allied controls or, indeed,
the cause of decent self-determi¬

cartels Will be left uncrushed
Patton's
sure

tanks,
in

that

I

but

rubble

the

we

of

than these. The cartels

by
quite

am

reliable— instruments

nation

control

now

in

by the

matters which

ex¬

their

istence in Nazi Germany bear lit¬

to

tle resemblance to freely-formed,

tecting

organizations for the
prosecution of peacetime busi¬
ness:
they are different in pur¬
pose,
and
they
certainly
are
manned by a personnel altogether
unsuitable for any peacetime use

tions

voluntary

We

TRUST COMPANY

that

scarcely be neutral by adding to

that
presently existing in
Germany have not been for many
years
the same "free^ untram-

which

IRVING

were

not)

am

peace

We know of the argument

cartels

if we

Further,

we ought
to be
completely neutral in the matter
of Germany's organization of her

'em

mess

employ them as agencies for the
carrying out of the economic con¬
trols we propose to institute in
Germany. We would not be en¬
couraging monopoly or restriction,

meant

is

have

cartels

program

up!

certainly

can

be

essential feature of such

international

trust"

you

fective"

has

participation

"anti

I

the German people against
their will, if by "completely ef¬

-

,

Germany's

of

even

ting, accepted and encouraged by
Maybe you can't destroy>m^

law.
but

German'people
we

want

to

in

leave

determination, by pro¬
and employing organiza¬

which

have

we

reason

to

regard Sis

wholly undesirable in
their own right, both economically
and politically.
',
■
.

Europe's variegated international
cartel
economy,
and
have,
as
well, frequently stretched forth
an eager hand to
grasp the weicoming hand of a companion car¬
tel

in

,

If

cartels

are

"natural"

or

bedded
but

in

the

and

in

the

that

cartels are,
of the bed-rock.

themselves, part

I am not a stu¬
dent of German economic
history
but I am willing to assume that

in

never

-

German economy,
from an assertion

this is far

modern

times

has

>

the

German

economy

ments

restrain trade, and fur¬
never
has the attitude

been free of
cartels,* combinations or agree¬
to

ther that
of "the

German people taken a
vigorously opposed to carthat taken by the people of

turn as

tels

as

the United States. It is

<•

interesting,

however,

and I believe signifi¬
note that the course of
cartels in Germany has not been
uniformly smooth, that the atti¬
tudes of the people and of the

cant,

to

government toward cartels have
been different at different times,
and that, the organization and activities of cartels have responded

~

,

both to changing economic situa¬
tions and changing laws.
\
Accounts of the

cartels

development of

in

Germany " since '/ the
full of such propositions
"The first important carteliza¬

1870's
as

are

tion

occurred during a period of
generally depressed business conditions;" "a prolonged depression
following a severe crisis, with ex¬
aggerated productive capacity fac¬

*

slackening

ing

markets, led to
competition and in turn to

in¬

regulating sales;" "protuctive tar¬
iffs promoted by heavy industries
seeking to safeguard their over¬
capitalized concerns against for¬
eign
competition,
provided
an

adequate basis for cartelization;"
"the movement

to an almost

came

complete standstill during an en¬
suing
peri 0 d of prosperity;"
"when

Statement

Britain

w

agreements restricting output and

certain that they digenous anywhere in the world,
would not be spontaneously co¬ they are certainly native to Ger¬
operative; indeed, we may expect many. For many decades the Ger¬
that they would serve as centers man economy has been character¬
of intrigue and resistance, oper¬
ized by cartel organizations en¬
ating behind the shield of an ac¬ joying various and varying debe

Great

United States. It cannot be
ques¬
tioned that cartels are
deeply im-

keen

Cartels Native to Germany

could afford to permit.

we

may

•

lied

character than,

in

better

and,
alto¬

concerned,

am

Thursday, July 5, 1945

...

of Condition, June jo, 1945,

expansion stopped,

a

new

cartelization movement set

BROOKLYN TRUST

tending

over

in, ex¬
the period of depres¬

sion;'^ "the period during which

i COMPANY

■

Cash and Due from Basics

.

U. S. Government Securities

V

,

#

.

,

$199,810,822.60

•

V

.

,

"798,884,101.33
•

Stock in Federal Reserve Bank ;

Loans and Discounts
First

.

.

.

6>9°i)38973.

;

;

.

Mortgages'on Real Estate*

177

9

^

'7

•

«

,

,

V.,

5^77,213.96

New York, N. Yi

7:
*

'

vi :

800,685.76

34739,558.09

■

•

?i,307,433,289.32

v''

1..

7

Cash

on

serve

7 1

U. S. Government

State and

Official Checks

Acceptances

2,689,996.50 $1,190,537,853.23
I

.

Portfolio

54,435,485.90

•

3

3

2

5

3

2

3

.3

j*

3

jf

Securities

Municipal Bonds

$

.

153,970,978.17

3

,2
3

3

3 T

• ;

•

•

#

•'

•

8,980,036.15

4,168,534.56

3

3

.

..

Mortgages

Buildings

•

♦

3

37,461,770.52
938,850.58

If 3,000,000.00

Other Real Estate

Hi.

Other Resources

•

•

*

.

•

•

1,000.00
868,697.74

•

$3,966,880.81

Less Amount in

$263,825,353.62
.

■

*

2,687,219.87^

•. ■ •»-

1,279,660.94

..

Dividend

payable July

Other Liabilities

.

.

Expenses*

2, 1945
,

,

,

#

J LIABILITIES

t

f

a

s

8

,

.

,

750,000.00

3

3

3

3

.1,163,509.05

3

2

3

a

Surplus

Reserves for

Capital Stock: ♦
Surplus and

7

Undivided Profits

v

Dividend

$50,000,000.00
59,686,729.48

109,686,729.48

'I,3°7,43'3,2*89.3 2

*

Reserves for

of

stated

at

amortized

3

3

^3 if 1,466,976.24

3

3

,

! S3 » 664,224.44

3

3

164,000.00

3
3
2
•
•
•
*
Taxes, Expenses, etc. 3

♦

247,094,849.21

3

1,035,303.73

,

by law,

United States Government and

Municipal bonds carried

at

divided

weakness."f

I

am

not

t

concerned

with

es¬

tablishing the exact scientific val¬
idity of each of these statements
in

relation to the particular

car¬

tel

development immediately re¬
certainly am not
attempting to maintain that car?

ferred to, and I

tels find their sole

tracting

markets.

origin in
I

con¬

do

assert,
however, that the development; of
cartels in Germany can be at¬
tributed very largely to the same
of

that have

forces

elsewhere

to

promote

$56,094,532.10

are

pledged to secure public deposits and for other purposes

car¬

tinct from

"competitive" business
congenial to what we have
come
to accept as the German
mentality, but I don't believe that
is

there is such a thing as an "in¬
herited instinct to cartelize" even
in Germany. I prefer to think that
are
largely a matter: of
"acquired taste." I am quite sure

that

with

for

more

favorable

pros¬

the

marketing of the
possible output from a highly ef¬
ficient productive plant than have

prevailed for Germany generally

Member Federal Deposit




Insurance Corporation

fThese

One

of the Oldest Trust Companies in the United States
MEMBER

NEW YORK

MEMBER FEDERAL RESERVE

;

oper¬

cartels

'

required

being

Of these,

$342,613,786.35 are pledged to secure deposits
public monies and for other purposes required by law.

cost.

ket

pects

State and
are

8,200,000.00

3 '3 ili 5,200,000.00

$263,825,353.62

As

United States Government Securities

Contingencies

payable July 2, 1945

Deposits
.

$

3

3
3
: a
Undivided Profits

4,015,536.62

«

capable; of

telization. It is probably true that
the notion of "ordered" as dis¬

"

Reserve for Taxes and Other

structure

distributed

ated
*

important

economic

power to expand," and expanding
productive capacity in various in¬
dustries endangered the prospects
of a profitable market.. Such, a

kinds

^

.

to

among the com¬
peting firms, as an offset to mar¬

3

Bank

f 1,187,847,856.73

the

nation-wide

a

comprises two phases of economic
contraction;" "the home market,
though protected against foreign
competition, was limited in its

thing

Bonds and

LIABILITIES

!

of

and

Hand and due from Federal Re*
Bank and Other Banks

Other Securities

Deposits

:'

RESOURCES

Loans and Bills Purchased
.

basic

became

situation lent itself to the concep¬
tion of the home market as some¬

15,393,200.00

',

#

,

26 Broad Street

j||

Summary of Statement at Close of Business, June 30, 1945

v

Other Assets

Montague Street

Brooklyn, N. Y.

273,718,217.85

V-.

Headquarters Building.
Customers'Liability - Vw:.w,':
for Acceptances Outstanding«

new york office;

MAIN OFFICE:

3,088,100.00

•

On

scale
strata

.

Other Securities'.

cartelization

:>■

CLBARING HOUSE-ASSOCIATION

SYSTEM AND FEDERAL DEPOSIT INSURANCE CORPORATION

phrased

statements

from

the

are

para¬

discussion

in

Karl

Pribram, Cartel * Problems
(The Brookings Institution, 1935),

pp.

241-250.

(Continued

on page

109) ;

/

,

105

Number 4400

.Volume 162

Oevfu® Admits Dunn, freiller asid Revits
in
United States Government securities announce that Stewart A. Dunn,
Carl J. Kreitler and Samuel Revits, will be admitted as general partCo., 48 Wall Street, New York City, dealers

J. Devine &

C.

eration by the management of the.
Fund of the economic status of

Asks Senate Delay Action
in liettoi Woods
U. S. Chamber of Commerce Sees Need for

Study and Discussion.

borrowing nations.
"(2)
Better coordination

Seeks

the two institutions
the House

in

deemed

Commerce.

point

1

••

-

Specific suggestions for a strengthening of interpretations
other improvements in

of

Department

Chamber,
its

the

by John J. O'Connor,

Manager, and filed by Howard E.
Volgenau, Manager of the Cham¬
ber's 'Department
of
Govern¬
mental Affairs.
Carl

Stewart A. Dunn

supplemental to

firm, as of July 1.
This is the first time in more than
that C. J. Devine & Co., has admitted new partners.
Mr.
Dunn, who has been with the firm since its inception, is assistant
in charge of branch offices.
Mr. Kreitler, with the firm for eight
years, directs institutional sales in New York and Mr. Revits, asso¬
ciated with them for ten years supervises sales in the metropolitan
district.' /
-■'"■v
'Kv-/;''
•
' 1. -/■/"
:
in the

ners

ten years

from

Insurance

Against

the
objectives of the Bretton Woods

ice

4. The

This
the

have

with

immediate

for

ities and lower freight rates,

especially
labor

by

much

very

conditions.

<

Reconstruction

Food

and

have

the

Industries

"country"

v..

1.

s u p

fire

such

clay,

as

paints

t i n g this
rather than

and

manufacture

The

dis¬

crates, bags, rope and twine.
3.

:

tanning and dressing of

The

leather,

p o r

saddlery, harnesses,

also

etc,

etc.

f.
Games, toys, and sport requi¬

conuensed

4^ Cattle, poultry and dog

sites.

manufacture

The

these

of

foods,

especially the latter.

small

adaptable in

especially

hardwood

in

communities

sec-

tions.

Governors Of the Bank would
sibilities
in

■

0

the

for

nations

ertion
States

a

the

such extent

the

that

says

of

of

Fund

pending

of

tainment

of

affairs

methods

fork

tional

con¬

and

Development

Before

final vote is taken in the

a

Senate there should be sufficient

its

suggestions, "would be further
lessened if the enabling bill were
amended in the following particu¬

time for study by interested per¬
sons

throughout the country «of the
hearings before the
committees in Congress.

lars:.' "v.'

voluminous

"(1) Strengthening of the in¬
terpretative provisions in Sections
13 and 14 by (a)-requiring their
acceptance by other nations iri ad¬

two

"The

and

time

Bank,

limitation

resource

inating

(b)

placing
the

uDon

of the Fund

'cyclical

use

and

Points of difference involve

details of the proposals and

cussion

of

character will be conducive to our

participation
in
the
Monetary
Fund and International Bank on

in

payments' from those
for which temporary
assistance
may be granted, and (c) adding a
definite requirement for consid¬

a

basis most favorable to our own

interest and to the economic wel¬
fare of the world."

J. P. MORGAN & CO.
\ INCORPORATED
;
■

NEW YORK

Condensed Statement of Cohdition

Committee

ASSETS

GEORGE WHITNEY

v'?.'' RESOURC
«

.

loans and Bills Purchased

Municipal Obligations

Other Bonds

,

.

Federal Reserve Bank Stock
Real Estate

Mortgages

June 30,1S45

'

j

Banking House

.

h

...

>j

.

Accrued Interest Receivable

t.r

V

'

Total

!•;

1*3

'" W

PAUL C.

I*'.'

H. P.

%■

President New York Central
•

j

.

.

Surplus Fund

...

•>.'
,

Profits

Undivided

.

General Reserve

.

m

m

.

Deposits

.

.

m

#
L«:

w

.W
w

i*3

i».

w

t»j

M

l»J

•

W

$ 2,000,000.00

w
W

856,780.18

w

w

973,999.35

1,160.59

.•

-*■

Payable July 2, 1945

w

i*

300,000.00

Total

Dividend

!•'

;♦

$170,549,225.94

Securities
secure

and

•

«

•

•

carried at $52,673,250.00 have been pledged to
Government War Loan Deposit of $49,995,412.93
purposes as required or permitted by law.

U. S.

for

-

Vice-President

JUNIUS S. MORGAN
ALFRED P. SLOAN JR.
Chairman General Motors
Corporation
E.

TAPPAN STANNARD
President Kennecott

Member Federal Reserve
Member Federal Deposit




Incorporated)

dnd

.> ..... . . . .

16,061,172.62

/*

136,088,621.38

Loans and Bills Purchased..............,,,.
Accrued Interest, Accounts

2,792,608:43

Receivable, etc...

300,000.00

Banking House..................^
Liability of Customers on Letters
of Credit and Acceptances.
Less

Prepayments

>

$2,974,864.75
184,015.56

-

>>.. ,♦

l

LIABILITIES

Deposits...

....

.*.

■

Official. Checks
Accounts

;

.

■$763,227,806.98

Outstanding

$768,961,546.41

5,733,739.43

Payable and Miscellaneous,

f

,

J 3,938,373.87

Liabilities..»...............

Acceptances Outstanding

and Letters of
2,974,864.75

Credit Issued...............

Capital.....................,..
Surplus.

..

............
.

;

V

Association
Corporation

.

20,000,000.00
*20,000,000.00
5,323,368.41

General Reserve..,.......

..................

10,182,665.46

$831,380,818.90 ■
United States Government securities carried at $250,627,695.10 in the above
statement arc pledyed to qualify for fiduciary fioivers, to secure
public monies as required by laiu, and for other purposes.

JOHN S. ZINSSER

President Sharp & Dohme Inc.

Member Federal Reserve System
Member Federal

System

House
Insurance

2,790,849.19

$831,380,818.90

Copper Corporation
JAMES L. THOMSON
Chairman Finance :
Committee Hartford Fire
Insurance Company

other

Member New York Clearing

Gr en fell 4'' Go. Limited

Morgan § Cie.

Undivided Profits.

Expenses, etc.

Unearned Discount

W. A. MITCHELL

V

137,833,867.60

....

Reserved for Taxes, Interest,

Railroad Company

26,000,000.00

2,583,418.22

-

1J00,000.00

(in cluding Shares

Vice-President

GUSTAV MKTZMAN

i'./• n'iabilities

Capital Stock

DAVISON*

.

THOMAS St LAM ONT

^

.

Other Bonds and Securities

CHARLES D. DICKEY

$170,549,225.94

!•

CABOT

CHARLES S. CHES T ON

491,179.98
"

R. ATKIN

President State Street

1,600,000.00

w

■

13,703,860.84

Reserve Bank

.V

Investment; Corporation

3,841,762.53

w

ANDERSON

Vice-President

.

•'

527,826,101.91

Municipal Bonds and Notes..:....

of Morgan

d.

i

840,000.00

w

...

Vice-President

Vice-President

2,291,500.00

w

State and

$127,917,604.53

from Banks.

.Securities... .*.

Stock of the Federal

6,461,000.00

;•
w

.

ALEXANDER

AR TH UR M,

99,776,135.71

.

,

v

■

28,596,121.42

.

,

HENRY C,

$ 26,651,526.30

.

...

.

.

Obligations

United States Government
State and

.

.

Hand and Due

United States Government
•

.

.

.

on

*On active

service in the armed forces.

safe¬

guarding provisions.
Public dis¬
of
the widest
possible

a

elim¬

fluctuations

objectives of the Bretton
are not at tis¬

Conference

Woods
sue.

of the establishment of the

Fund

Cash

Banks

are

tant to be acted upon

President

in

Reconstruction

for

Bank

too impor¬
without the
fullest opportunity for discussion.

•

Chairman

o] Condition June 30, 1945

of

conceal the

"The proposals for American
participation in an International
Monetary Fund and an Interna¬

the

"Dangers in connection with the
operation of the Monetary Fund,"
says the statement in summarizing

R. C. LUFFING WELL

Cash

avoidance

and

designed to

costs from the taxpayers.

Bank

favorable

more

ditions."

world

for ex¬
connection
with,

in

penditures

in

on

There should be

of all proposals

canvass

a

clarification of
points and at¬

a

doubtful

various

action

which our con¬
a budget ex¬
than a public,

debt transaction.

establish¬

International

the

deferment

but

Committee

rather

penditure

new

immediate

by

procedure

tributions would be

to

bill

Chamber's

the

proposing
ment

as

House

the

policies under

currencies provision of

scarce

"(4) Revision of financing pro-r
a view to adoption of

a

provisions
safeguard the
operations, of the Monetary Fund
"the purpose is identical with that

in

en¬

visions with

The Chamber's statement to the

Committee

the

or

the Fund agreement.

its own powers or the
perfecting of the Monetary Fund
plan.
Senate

of

limit ex¬
of pressure upon the United
with respect to tariff, in¬

vestment and trade

permanent
program involving either a broad-

ET'-T

•

the'

on

institu¬

two

Modification

"(3)

preparing recommendations

THOMAS IV LAM ONT

Chairman Executive

Statement

of the

abling bill to prevent

under powers permitted
Articles
of
Agreement

the

while
to

as¬

interim stabilization respon¬

sume

DIRECTORS

nf Nnu

persons

same

1853

CHARTERED

or-

are

feasible, obligated to ap¬

the

management

balances of
is

requested,

tions.

vance

Fertilizers, disinfectants, glue,

4.

5.

suburban

be

Butter,
cheese,
milk and margarine.

-

Industries

materials

Building

tribution of brushes, canvas goods,

isolated.

of automobiles and
operation of garages offers

vinegar,

cider,

drinks,

Soft

timber, bricks,
and varnishes.

saus¬

•"

3.

opportunities.

the Board of

wines, cocoa and confectionery.

and

baking trade, although

2. The

should

and

2. The sale

similar

of

communities

mechanical ability.
„

Drink

and

ages.

combined sales

a

5.

Miscellaneous

binding

book

These industries, even

manufacture

.

-

who

Under this proposal,

of

1. Ham or bacon curing, and the

better

and

sale

The

proposing deferment of action
the proposed Monetary Fund.

on

2.

repairing of
agricultural machinery offers an
excellent
opportunity for those
1.

Development

and

communities.

small

Industries

Metal
.

repairing

and

today, are the most successful in

and

rent

of

for

International Bank

proposed

upholstery.

engraving.

transportation facil¬

better

food,

a

costs

Tower

with

sale

5. Printing,

good future.
future is being enhanced by
improved living conditions,
still

repair

furniture, especially in connection

in small communities and

on

which

and

sale

the

and

heating and cooking apparatus.

(Continued from page 72)
now
being successfully car¬

ried

and

recommending
establishment of the

Conference

equip¬

ment combined with battery serv¬

Communism: Babson
are

household

earlier report
Department

an

Finance

its

Committee giving approval to

but
3. Electrical

statement ' is

be

to

'Other

commitments

advance

ening.of

v

,:

,

Chamber's

The

Samuel Revits

Kreitler

J,

and

the bill as^

passed by the House were offered
in a statement from the Finance
headed

if

is providecF

Governors.

should

nations

provide additional safeguards in the operation of the proposed laternational Monetary Fund Was urged upon the Senate Banking and
Currency Committee on June 25 by the United States Chamber of

of

director

as

bill with regard

the respective

Amendment to the Bretton Woods Agreements enabling bill to

:

executive

American

Safeguards in Interpretative Provisions and Integration of Fund and
Bank. Wants No Pressure on Our Tariff, Investment and Trade Policies.

•

andt

integration of the Fund and the
Bank by requiring the appoint¬
ment of the same person as the

Deposit Insurance Corporation

^

any other articles of this Agree¬
ment,
maintain
and
adapt
to
changing circumstances (and, in
the case of members whose terri¬

The International Fund
And Exchange

lestricfiexis

(Continued from page 72)

provided equivalent to eight bil-;| by one in a practical way adapted
lion eight hundred million dollars to the special circumstances of
Manifestly one of the
in gold, dollars and other cur¬ each case.
most practical ways of dealing
rencies,! '
with the problem would be for
With this clear statement of ob¬
the Fund's management to make;
jectives and of the means to their
or withhold loans from the Fund
attainment
and provision of a
reasonable amount of money in depending on whether or not such
loans
were
related
to
agreed
the Fund to implement their at-1
terms and conditions eliminating
tainment, it would be fair to as¬
or tending to eliminate, exchange
sume
that
effective
provision
restrictions.
would be. made to establish a
Instead of this, during the Tran¬
clear
connection
between
the
sitional Period, the Fund's man¬
means and the end to insure that
the means provided would accom¬ agement is deprived of all power
ot

plish their purpose.
Exchange Restrictions Not Elim¬

trade

inated

sive

restrictions

Exchange

used

are

resources

as

a

international
of oppressive and subver¬
exchange
controls.
This
of

freeing

situation results not only from the

to

basis

the most pressing prob¬

which

on

quota
Fund's re¬

automatic

unconditional

channel and control international
trade

Fund's

the

use

means

the

Overseas

Airways

Corporation"

offered

"meanwhile

and

for

de¬

transport
going into production next fall"
British
tories have been occupied by the of
production
"which
enemy,
introduce where neces¬ ^qualified designers describe as a
sary) restrictions on payments and stopgap model 'not as good as a
DC-3' ". The article further states
transfers for current international
The words "restrictions on pay¬

transfers"

and

change

controls

availed

of

nel

provisions,

•

Under

trade.

international

these

may be
and chan¬

which

control

to

ex¬

mean

Fund (can

the

year

a

"threatened action" has

that this

transactions."

ments

livery late this

been sufficient to bring American
sales programs

in the entire area

standstill.

The South Afri¬

to

a

government, although inter¬
ested in American planes which
were demonstrated at Johannes¬
can

March, has - told
the
American representative, in effect,
exchange restrictions during the
critical Transitional Period, and 'that its hands are tied,
2. In
the year 1938, for ex¬
its best method of dealing with ;
take

such
the

tional

its

of

making

namely,

practices,
use

condi¬

resources

away.

World

Trade

ample, the combined exports of
Chile, Peru and Bolivia, now par¬
ties
to
sterling
compensation
to countries in the
amounted to some
.77 million dollars.
The combined

:

\

sterling

Cannot Wait

Now I respectfully
world
trade
cannot

in

burg

thrown agreements,

literally

is

such

of

amelioration

on

practices,

about

action

effective

no

'

submit that
five

wait

for relief from exchange
practices prejudicial to interna¬
tional
trade
movement,
Five
years

area,

imports of Chile, Peru and Bolivia
sterling area countries in

from,

amounted to 21
A large part of
the difference of 56 million dol¬
lars was at that time convertible
into dollars for the purchase of
the

same

year

dollars.

million

also
deal.
Obviously these exchange: from the specific provision of Sec¬
years is no passing phase.
It is
restrictions, prevalent throughout tion 2 of Article XIV, which, dur¬ a
very long time in the life of any ;goods in the United States and in
the vyorld today, cannot be done, ing the Transitional Period, leaves
Now this 56 mil¬
business, certainly too long in the other markets.
away with instantly by a mere' the entire matter of exchange con¬ life of world business
strangled lion dollars could not be used for
stroke of the pen.
The simplest trols unrestricted and unregulated
such purchases
as
the blocked
by
restrictive
and
subversive
by providing in the most sweeping
way to begin to eliminate them
practices.
The very underlying sterling resulting from the sale of
would, therefore, seem to be to terms that "in the post war tran¬ basis of Bretton Woods and the the South American countries' ex¬
vest the management of the Fund sitional period members may, not¬
urgency for its adoption are that ports to the Sterling Area would
with power to deal with them one withstanding
the provisions of world trade is
suffering from re¬ have to be spent in the Sterling
with

lem

.

Thursday, July 5,1945

THE COMMERCIAL & FINANCIAL CHRONICLE

106

which the Fund must;

sources

are

to be loaned, but

strictions

and

impediments now
A patient
in the condition on which Bretton
Woods is premised cannot wait
five years for help.; The trade of
every nation in the world needs
help now not five years from
now. V
''l/'.-r
'^v
that must be removed.

AND TRUST COMPANY OF NEW YORK
Main

the

under

Office, 37 Broad Street

v'

The status of the Sterling Area

does

Plan

CONDENSED STATEMENT

practices
such as the Sterling
Area during the Transitional Pe¬

CONDITION

OF

riod.1:.

Vvv'.:;,".A".;.Sterling

The

June 30, 1945

/

require
trade

not

monetary

of

abandonment

|

Plan

Transitional Period
illustrates my point.
It is gener¬
ally
agreed
that
the Bretton
Woods

|

Woods

the

during

'

.

Bretton

The

Sterling

Area

Area

comprises

the countries of the British Com¬

Cash and Due from Banks

U. S. Government Securities
State and

•

.

.

»

*

Loans and Discounts

Customers'

♦

,

.

,

.

V

.

.vyV;

$ 84,656,121.06

,

287,828,458.29

•

.

.

,

5,037,489.13

•

Municipal Securities

Other Securities

,

»

,

,

2,242,625.70

•

Stock of the Federal Reserve Bank

.

f

Banking Houses

.

•

:

501,000.00

,

Other Real Estate

'

♦

.

^Accrued Interest Receivable
I Other Assets

•

,

•

.

.

.

V

•

f

'

1,069,193.36

•

...

.

«.

,

.

•

.

1,943^641.16
35,143.66

•

•

261,325.56

$508,338,625.21

jV

LIABILITIES

Capital
•

*

•

Surplus.

.

.

.

.

.

Undivided Profits

I Dividend

.

.

$7,700,000.00

•

•

•

9,000,000.00

•

♦

.

.

.

4,476,251.08

Payable July 2, 1945

.

165,000.00

,

,

#

*

.

.

,

327,610.32

Reserved for Interest,Taxes, Contingencies

4,092,100.89

Acceptances

.

.

.

.

.

.

,

.

.

.

Less: Own in Portfolio

.

of Eu¬

countries

agreed;

for purchase of
services from Great
Britain, or, under certain circum¬
stances, from other members of
the Sterling Area.
It cannot, gen¬
erally speaking, be made avail¬
able by
conversion into dollars
for purchases in the United States
except, and only then with the
consent of the Bank of England,
used

be

goods

only

or

commodity to be pur¬
obtainable in the

not

is

chased

$21,176,251.08

Sterling Area.
Mr.

British

v

some

London

of

Banker"

of

March,

996,785.76

1,090,960.60

warfare;

a

battering ram with
door to unwill¬

which to open the

Other Liabilities

Deposits

.

•

•

.

.

.

.

....

V

•

.

.

•

•

.

.

173,332.88

♦

V

481,407,544.28

$508,338,625.21

ing markets; a spiked fence of
discriminatory devices with which

Securities carried at

$76,897,384.85

other

are

pledged to

secure

Deposits of $74,462,777.59 and

public and trust deposits, and for other purposes as
required or permitted by law.

MEMBER: N. Y. CLEARING HOUSE

ASSOCIATION • FEDERAL RESERVE

FEDERAL DEPOSIT INSURANCE

25 Offices

CORPORATION

Located Throughout Greater New




York

SYSTEM

Area

countries

far-reaching effect on American
exports is apparent.
3.

One of the

Countries of South

America which sells a large part

the Sterling Area

of its exports to

pounds sterling has employed
some
of the resulting pounds to

for

purchase commodities which are
imported to the South American
country and sold there /in the
currency
of the country at as
much as 20% under normal price.

and

Grant

the

validity of

wanted

unwanted goods from un¬
sellers out of the Empire

Illustrative of how the

Sterling

Tribune" of May 18,
an

article

to

the

1945, carries
the

effect that

Egyptian National Airline M.I.
SA., desiring to purchase certain
Douglas aircraft, was advised by
the British authorities that the
sterling could
not be made available for mainte¬

airline's

of

"blocked
such

planes unless th'e
job was turned over to the British
nance

of

one

the

short-selling;

(a)

of

Rule

X-

the

exemption from the

quirements
sonie cases

re¬

of

paragraph (a) in
mistake, provided
that the exchange upon which the
sale

of

effected

was

makes

certain

finding relating to good faith and

diligence

and

the

to

hardship

which would result from covering

the,
for

transaction

by

"purchase

a

The Commission fur¬

cash."

ther .says:

-v\:;

"The amendment eliminates the

-

necessity for the Exchange's mak¬
ing the finding of hardship where
the mistake was made by a broker
and the price at which the sale
level per¬

effected was at a

was

missible for

a

short sale under the

provisions of Rule X(a). No change is made iit
requirement that ' the Ex¬
change make a finding, of good

pricing
10A-1

the'

faith

and

in

diligence

due

the

marking of the order before relief
can

be

granted..;.
text

The

.

actions follows:

•

-

Securities

The

V .;

Commission's

the

of

■

and

¥{■

Exchange

Commission, deeming it necessary;
exercise of the

the

for

in

vested

it

and

functions

necessary

and

appropriate in the
and for protection
to do, pursuant to
ferred upon it by

public interest
of investors so
authority con¬
the Securities
Exchange Act of 1934, particularly
Sections 10 (a) and 23 (a) there¬
of, hereby amends paragraph (b)
of

X-10A-2

Rule

to

read

as

fol¬

v;-'"

lows:

The provisions of para¬

"(b)

graph (a) hereof shall not apply
(1) to the lending of a security
by a member through the medium of

a

loan to another mem¬

(2) to any loan, or ar¬
rangement for the loan, of any
security, or to any failure to
deliver any security if, prior to
ber,

or

such loan, arrangement, or fail¬
ure
to
deliver, the exchange

the sale requiring
of such security
effected finds (i) that such

upon which
the delivery

;:

was

resulted

sale

from

a

mistake

made in good

faith, (ii) that due
diligence was used to acertain
that the circumstance specified
in.; clause

(1)

of Rule X-lOA-1

(c) existed or to obtain the in¬
formation specified in clause (2)
thereof, and (iii) either that the

Britain's

condition
time

the

ered

was

of the market at the
mistake

was

discov-

such that undue hard¬

ship would result from covering
transaction by a 'purchase

the
1

for

cash,'

was
'

made by the seller's broker

that the mistake

or

and the sale was at a
missible for

price

per¬

short sale under

a.

Rule X-lOA-1

(a)."

A flourishing Ameri¬
can
export trade
and related stated objectives of the Fund will
'%/'■ • V; •
American Merchant Marine are be lost.
'Most of the objections to the
essential to provide full pOst-War
employment and to maintain .the, Fund,would be met by an amend¬
business and industrial structure ment giving the Fund's manage¬
ment
authority to
use
its re¬
necessary to sustain our pOst-War
from the

outset 'to make
basis in a

obligations, our necessarily large

sources

post-war naval and military estab¬
lishment
and
our
standard' of

loans

Correction, by action fair
to
all
concerned, of restrictive
trade practices, making such an
export trade and Merchant Marine
impossible cannot be put off for
five years.
Unless the manage-'
ment of the Fund has authority
from the outset, and while its re¬
sources are intact, to use those re¬
sources in an intelligent way di¬
rectly and specifically to facil¬
itate elimination of the necessity
for such trade practices, the one
best
chance to accomplish the

but requiring the easing and elim¬
ination of exchange restrictions to

living.

Area operates in practice:
i
1. The
New
York > "Herald-

paragraph
requires

vides ap

justification of the Sterling Area
in the necessities of her post-war
economic situation, and every *de-'
sire
on
the part of the .United.
States to assist in the solution of
problem.
This does ndt miti-'
gate the disastrous implications
of this form of monetary control
of international trade to Amferi-*
can
foreign trade and tjiat. of
other countries outside the Ster¬

its

covering iof
short sales improperly executed
as long sales.
Paragraph (b), the
subject of the amendment, pro¬

Trade

her

amended

of:

10A-2

in South America.*
Foreign

Exchange

paragraph
(b)
of
Rule
In i general,
says -the
Commission, the preceding rule,
Rule X-10A-1, .regulates the pric¬
ing and marking of short sales,

other.

Must Expand

had

and

June 13 announced

X-10A-2.

This is, of course, merely a method
of converting pounds sterling into

tured products

it

on

rules,

and the

_

to keep

market."

V. S. Government War Loan

Sterling

or

I
position with the
Treasury, writing in "The ling Area.
Bareau, who holds,

Paul

believe,

■

1945, describes the Sterling Area
as
"an instrument of economic

$2,087,746.36

for

States

4. Supplementing and facilitat¬
pound
sterling, blocked in London, in j ing the functioning of the Sterpayment for their products sold toj ing Area program, British manu¬
Great Britain and to some extent facturers are engaging in an ex¬
campaign of
to other members of the Sterling: tensive advertising
Area. This blocked sterling can British machineiy and manufac¬

where the

.

Unearned Discount

the

rope. Thes<& countries have
in substance to accept the

934,873.19

.

United

that

(except

of

number

123,828,754.10

.

•

Liability for Acceptances

purchases in the
other countries
outside the Sterling Area.
Add
to this 56 million dollars similar
diversion
of trade from' other
dollars

to

Securities

provisions

local currency by taking a dis¬
Canada and
count on the pounds.
This is a
Newfoundland), and the British
familiar practice under which un¬
Protectorates, and certain Euro-s
disclosed
currency
depreciation
pean countries.
Affiliated withj
takes place and undue. competi¬
it, through compensation agree- i
tive advantage secured, through
ments, are most of the countries;
monetary controls, for the exports
of South America, and a-growing'
of one country over'those of an¬
monwealth

RESOURCES

i

and could not be converted

Area

The

Commission

on

manner

the

a

selective

not only

fullest

making possible

practical extent

as; a

,

condition of loans from the Fund.
Such

an

amendment would make

it- possible for the Fund to per¬
intended function as an

form its

effective

means

of

removing ex¬

change controls and blocs as bar¬
riers

to

international

trade

would enable it to assist in

and

a very

important way in the reestablishment, "extension and balanced
growth of international trade."'

Volume

THE COMMERCIAL &

Number 4400

162

ing
with

Bolivia-British Sterling Agreement

or

FINANCIAL CHRONICLE
the United Kingdom of

present:

maintenance of accounts
in the United King¬

and Northern

Britain

Great

banks

107

tion to that effect from the Bank
of

(including for this purpose
dom, to be designated "Bolivian
Sterling Area Accounts," in the the Isle of Man) together with
"Sterling Area" names of individuals resident in the following territories, exclud¬
exchange compacts with various nations, the "Chronicle" publishes Bolivia but
having close connec¬ ing Canada, Newfoundland, and
below the agreement between the Central Bank of Bolivia and the
tions with any territory in the Hong Kong:
Bank Of England, dated March 31, 1941, relating to the settlement
(a) any Dominion,
Sterling Area. These accounts will
of all financial and commercial payments between Bolivia and the
be available for use in accordance
(b) any other part of His Ma¬
Sterling Area. This agreement, though similar in some respects to
with the regulations in force re¬ jesty's dominions outside the Brit¬

(published in the "Chronicle" of
May 31, page 2398) and to the
Anglo-Chilean Exchange Agree¬
ment printed in the "Chronicle"
of
June' 7,
(2508), lit
differs
Sharply in that provision is made
of

authority

United

the

Accounts may
tral Bank

Agreement of the same date, shall
place gold at the disposal of the
tin companies for amounts
due
receives

Bolivia

that

of this is

effect

The

them.

of

Chile

Bank of Peru, as also to the cen¬
tral banks of other countries with

receive

may

or

gold in exchange for tin, and is
hot required to limit its payments
from the "Special Tin Accounts"
to residents within the "Sterling
Area." -',v.
Text of Agreement
■

Central

The

Bank

the

and

Bank of Bolivia
of England have

agreed to the' following:
.

pounds sterling to the Bank
Brazil, the Central Bank of
and the
Central Reserve

to sell

Anglo-Bolivian

an

of Bolivia at the rates

exchange laid down in Clause 1,
by means of transfers to Bolivian
Special Accounts.
7. The Bank of England author¬
izes the Central Bank of Bolivia

of

the Gevernment of
Kingdom, in accord¬

with

ance

Tin
be sold to the Cen¬

the credit of Bolivian Special

Bank of England, under

that the

to

6. Sums in sterling standing

whom
for

be made
Bolivian

agreements may
transfer
of

the

pounds sterling, at a rate of ex¬
change based on the official rate
laid down in Clause 1 of this

Agreement and up

This Agreement

14.

to the limits

fixed in communications that have

the

change control, that is to say, at

the date

istice

Bolivia.

Central Bank of

of this Agreement

purposes

on

is

be¬
tween the Bank of England and
the Central Bank of Bolivia; it
been

or

be

may

exchanged

being understood that these limits
commercial
may be changed at any time by
between Bolivia and consent of,all the interested par¬
the Sterling Area shall be settled^
ties.
The
Bank
of
England,
"in sterling. The Central Bank of?
nevertheless, reserves the right to
Bolivia shall quote rates for ster-j
suspend unilaterally such trans¬
ling in terms of the Bolivian peso fers in case the balances in ster¬
based on thef'offiddl middle price
ling in the Special Bolivian Ac¬
for gold in London (which; at 168; counts and the Special Bolivian
shillings and 6 pence per fine
Tin; Accounts should be insuffi¬
"ounce; which how: prevails,"; is! cient at any time to cover all the
equivalent 1 to U., S.
$4.03 per;
financial, « commercial * or other
pound sterling) and on the cUr-j payments owed in sterling by Bo¬
rent quotations fixed by the Bo¬
livia to the Sterling Area and the
livian monetary
authorities for; Bolivian authorities should find
the United States dollar.; 1" '
* I
themselves Unable to fulfill their
1. All financial and

payments

.

MANIIFAfTBBKIlS
Wf-

'COMPANY

TRUST

Condensed Statement

of Condition

close of business June 30,1945

as at

RESOURCES

Cash and Due from Banks

D. S. Government Securities

.

.

...

.

.

.

.

....

<1,319,364,691.70

importa¬

commitment to sell United States

XJ. S. Government Insured F. B. A. Mortgages

dollars to the Bank of England in
accordance with Clause 8 of this

State and

tions

by the United

...

possible steps in coopera¬
the
United Kingdom
Exchange Control,- operating in

England, under
authority of the Government of
the United Kingdom, shall place

that

and remittances

ments

gold at the disposal of the tin
.companies in accordance with the
terms of Articles 6 and 7 of the

ensure

all

! Agreement

signed March 31, 1941,
Government of the

the

between

"United Kingdom and the Govern¬

Bolivia.

ment of the Republic of
4. All
payments
for

exports
from Bolivia to the Sterling Area
other than exports of tin to the
United Kingdom —and all pay¬
the Sterling Area to

ments from
•

Bolivia

originating from current

transactions,

; financial
credited

the Special

to

shall

be

Accounts

the Bank of England or with

their

Kingdom,

to

or

Special Accounts

which may be opened in the name
or other entities or firms

■of banks

operatingin Bolivia .with, their
correspondent banks in the United
Kingdom. Special accounts may
only be opened upon advising the
I Central Bank of Bolivia and with
4

:

consent of the Bank
and registry there.

the previous

of

England

Special Accounts
'referred to in this paragraph will
the

Henceforth

'•
4

be

called; Bolivian

counts.

5.
"Tin
1

Bolivian Special Ac¬
the Bolivian Special

The

and

counts

'

.

Ac-

Special
:.rV
•'

Accounts

only be used
from Bolivia to
These account^
used for payments
may

for payments due
the Sterling Area.

; may

not

due to

be

non-resident,1 except as

a

'

;
:

'

•

•

-

provided in clauses 6, 7 and 12 of
this Agreement and except for
any other provisions that may be
agreed upon from time to time by
the Central Bank of Bolivia and
the

;

England.. A

resident/ account"

means

"non-

the

ac-

count of any person

in

Clause

13.

Funds

in

transferred




time.

.

2,211,350.00

.

.

17,931,491.93
484,681,046.19

.

Equities

.

11,592,030.67

.

•

•

•

•

.

....

Liability for Acceptances

421,428.73

3,545,106.95

.

sufficient

Common Stock

4,869,546.12

Accrued Interest and Other Resources

to

meet

the

$2,261,550,127.44
LIABILITIES

Preferred Stock.

Bolivian

sterling

requirements,
sterling
will be purchased from the Bank
of England in the amounts neces¬
sary for credit to these accounts,;
the sterling to be purchased with
United
rent

States

dollars at the

Surplus

Reserve for

The

9.

■

•

sterling balances which;
on Oct. 5,

1940,

were

persons

resident

in

be transferred to
Special Account.
may

a

Bolivia
Bolivian

at the close of business

so

on

in

to

.

,

.

192,742.50

4,073,017.12

S

"

,

.

%

.•

,

.

*

.

439,849.33

2,145,420,788.75

.

President, George A.

;

are

pledged to

President, Spicer

Simpson Thacher & Bartlett
The Charles L, Jones

Fuller Company

New York

Manufacturing Corp.

ERNEST STAUFFEN

President, Curtiss-Wright

Corporation
HENRY C. VON ELM

President, John P. Maguire &
Co., Inc.

President, La France Industries, Inc.

.

GUY W. VAUGHAN

Industrial

Savings Bank

PAOLINO GERI.I

.

Chairman, Trust Committee

JOHN T. MADDEN

C.

Co.

Company

JOHN P. MACUIRE

Chairman, Lincoln Savings Sank

the Bank of England may author¬

President, Home Insurance

City

President, Emigrant

City

HAROLD V. SMITH

SAMUEL McROBERTS

CHARLES FROEB

12.

New York

OSWALD L. JOHNSTON

Vice-President

?

Coal Co.
HAROLD C. RICHARD

CHARLES L. JONES

JOHN M. FRANKLIN
New York City

;

GEORGE J- PATTERSON

President, Scranton & Lehigh

President, Lambert Company

HORACE C. FLANIGAN

Vice-Chairman
ALBERT N.

R. PALMER

President, Cluett Peabody &
Co., Inc.

,,

of the Board

WILLIAMS

President, Western Union

Telegraph Company

Principal Office: 55 Broad Street, New York City

(b) Balances remaining in Bo¬
livian Special Accounts and Bo¬
livian Special Tin Accounts shall
.

/

CHARLES A. DANA

apply

:

;

LOU R. CR AND ALL

•

•.

'

President, Atlantic, Gulf and
West Indies Steamship Lines

established

Accounts.-'.:-

$426,725,501.13

President

EDGAR S. BLOOM

Special Tin

Bolivian

down in Clause 5.

.

JOHN L. JOHNSTON

Chairman, TheSperry & Hutchinson Co.

to bal¬
Special
Accounts and Bolivian Special Tin
:

.

HARVEY D. GIBSON

ALLEN

EDWIN J. HEINECKF,

(a) The provisions of Clause 10
continue

.

Works, Inc.

this Agree¬
V;'f

I held

.

...

.

Acceptances and Foreign Bills

on

Chairman, Mathieson Alkali

the

the Bank of England.
11.
Upon expiry of

ances

.

824,998.50

(Payable July 15, 1945)

DIRECTORS
EDWIN M.

adjusted to the new offi¬
cial London price of gold by credit
or
debit of the Special Account
of the Central Bank of Bolivia at

shall

.

6,317,458.55

.

secure U. S. Government War Loan Deposits of $398,135,001.47 and other public
funds and trust deposits, and for other purposes as required or permitted by law.

shall be

ment:

.

8,468,300.66

.

(Payable July 2,1945)

Preferred Stock

,

...

......

.

95,812,972.03

22,103,272.03 i

Unearned Discount, Interest, etc.

on

.

33,000,000.00

>2,261,550,127.44

preceding such change. The
total of Bolivian Special Account
balances

.

.

United States Government securities carried at

day

Account

.

.

.

.

33,000,000.00

|

Accounts shall be established

balances and Bolivian

.

Common Stock

Deposits

change
in the official price of gold in
London, balances standing to the
Credit of the Bolivian Special AcCounts and the Bolivian Special
as

.

on

10. In the event of any

Tin

.

Contingencies

Liability as Endorser

standing to the credit
-

.

Outstanding Acceptances.

at the close of business

of

.

Dividend

■

,

.

.

.

Dividend

buying rate for United States:

dollars in London.

.

.

.

.

Reserves for Taxes,

cur¬

.

.

.

...

.........

.

$ 7,709,700.00

.

.

Undivided Profits

ize—informing the Central Bank
of Bolivia beforehand—the open¬

freely

...

Special Accounts and Bo¬
Special Tin Accounts and
in no Other way.
If the balances
of the Bolivian Special Accounts
and the Bolivian Special Tin Ac¬
counts should at any time be in¬

be¬

be

.

.

.

livian

Notwithstanding the forego¬
ing provisions <?f this Agreement,

may

.

Customers'

sterling standing to the credit of
all Bolivian Special Accounts and
Bolivian
Special
Tin
Accounts

tween these accounts at any

.

.

.

Other Real Estate

Bo¬

resident outbe utilized for the purposes • laid
side the Sterling Area, as it is

defined
;

of

Bank

.

Banking Houses

livia to the Sterling Area will be
made from funds deposited in Bo¬

of the Central Bank of Bolivia at

'other correspondents in the United

from

.

V

.

.

18,326,487.42

.

11,980,410.12

pay¬

livian

-3. The Bank of

.

.

.

.

.

.

4,644,383.41

.

.

.

.

Loans, Bills Purchased and Bankers' Acceptances

with

to

.

Other Securities

take all

London

>

Stock of Federal Reserve Bank

Agreement. /
f
■
:
8. The Bolivian authorities shall
tion

Municipal Bqnds

331,982,154.20

$

-

•

...

Kingdom of,
Bolivian tin wiil be made in ster¬
ling to
Special Tin
Accounts
which shall be opened by the tin
.companies in their? banks in the
United Kingdom.
These Special
Tin Accounts shall be registered
at the Bank of England.
' vgM

/.• 2. All payments for

shall take

effect from the date of signature
and shall remain in force until

which a general arm¬
signed
between
the
United
Kingdom and Germany.
The Agreement shall remain in
garding Sterling Area Accounts. ish Islands,
(c) any territory in respect of force after that date subject to the
Payments from Bolivian Sterling
which a mandate on behalf of the
Area Accounts may not be made
right which each of the contract¬
to any other account (other than League of Nations has been ac¬ ing parties shall have of denounc¬
a
Bolivian Special Account or a cepted by His Majesty and is be¬ ing it, in writing, to the1 other
Bolivian Special Tin Account) of ing
exercised by His Majesty's at any time, with six months ad¬
Government in the United King¬ vance notice. If it should happen
a person resident outside the Ster¬
ling Area; and transfers between dom or in any Dominion,
that hostilities should be renewed
one
Bolivian Sterling Area Ac¬
(d) any British Protectorate or between the United Kingdom and
count and another will not be per¬ Protected
Germany, at any time, within
State,
mitted. Transfers from a Bolivian
three months after the signing of
(e) Egypt; the Anglo-Egyptian
Special Account or a Bolivian
such an armistice, then any de¬
Sudan, Iraq, the Belgian Congo,
Special Tin Account to a Bolivian
nunciation
shall
be
considered
Ruanda-Urundi. It is understood
Sterling Area Account will be
void in respect to all the provi¬
that if His Majesty's Government
freely permitted.
sions of this Agreement.
in the United Kingdom shall at
13. In this Agreement the ex¬
Signed in La Paz, in duplicate,
any time amend the definition of
pression "The Sterling Area" shall the Sterling Area for the purposes March 31, 1941, in Spanish and
have the meaning assigned to it
of
the
said
regulations,
such English, both texts being equally]
by the regulations in force in the amendment shall apply to the authentic.
Bank of England.
United Kingdom in regard to ex¬ definition of the Sterling Area for

arrangements made with Peru<£-

the

England to the Central Bank of

Peru.

its publication of British bilateral

Continuing

from the date of the notifica¬

as

Ire¬

land

GO

BANKING

OFFICES IN GREATER NEW

European Representative Office: 1, Cornhill, London,
Member

Federal Reserve System
Member Federal

YORK

E. C. 3

Member New York Clearing House
Deposit Insurance Corporation

Association

Preferred shares, all of which are held by institutions and other investors, have a par value of $20 and are
convertible into and have a preference oVerthc Common to the extent of$50 per share and accrued dividends.

]

THE COMMERCIAL & FINANCIAL

108

CHRONICLE

Thursday, July 5, 1945

bonds during

recent years and the
out¬
these
types. On these subjects, the view
is expressed thab "With the rapid
extinguishment
of
all tax-free

''"..v;

$41,000

Buffalo, N. Y. Sewer Authority
3% Bonds,
due

Federal

burdensome

.90%-1.10%

bonds
tate

more

Even

Telephone WHitehail 3-6742

Municipal Bond Market"
Halsey; Stuart & Co., Inc. states
that 'TThe end of the European
-war, and
the resulting assurance
the

of

speedier termination of the war
with Japan calls for a new appraisal of the factors governing

of

the
*

of the municipal bond

course

market."

Review

The

in

discusses

turn

costs

With

for

heading of

the

est rates, the Review

inter¬

expresses

that they will re¬
main low for a considerable pe¬
opinion

riod ahead. "There is, first of all,
the desire on the part of the
Government

Federal

rates low

the

aging

means

a

as

huge

to

keep

of

man¬

federal debt—

at least until the debt is put on
a

reasonably

permanent basis.

Equally important is the neces¬
sity of protecting holders of out¬
standing
government
issues
from any substantial market de¬
cline such as would result from

material

increase

in

interest

"Aside, however, from the de¬
sire of the Federal Government to

rates

during

the

and

war

post-war years at some¬
where near prevailing levels for
the reasons given, there is the im¬
early

consideration that de¬
mand for new capital from pri¬
vate borowers, even though great¬
ly increased in the post-war years
(which in itself remains to be de¬
monstrated), may reasonably be
expected to be met without ma¬

portant

terial

advance

because
of

in

interest

rates

of the vast accumulation

available

during the
<

well

as

for

as

some

re¬

apportionment of .already accu¬
mulated state reserves.

Commenting

action

the

on

of

early in the year in upholding the

tax-exempt status of municipal
bonds, the Review remarks that
dis¬

"Whether this represents final

position of the question is doubt¬
ful.

While there is every

reason

why. previously issued municipal
bonds, offered and purchased in
good faith as exempt from Fed¬
eral taxation, should retain that
stipulated
advantage,
Congress
may conclude there is less valid
reason why, in view of the reve¬
nue

needs of the Federal govern¬

ment,
under

thority

subsequently issued bonds
proper constitutional au¬
should not be subject to

such taxation.

",'rates."'

hold

taxes, notably sales and gasoline

levies,

the United States Supreme Court

period ahead.

the

dis¬

collected

state

of

"While

resources

built

up

war years.

the

early prospect of
any material advance in interest
rates
thus
appears
improbable,
further decline from existing unprecedently
low
rates
seems
equally unlikely because of the
potentially
adverse
social
and
economic
consequences
of any
such developments."

V; Also, with the continued
of

tension

state

governments
fields,

and

ex¬

tionable

may

ing

in

Congress

bill is pendr

(the

in

tax

Carlson

decision
Court

of

the

is

the

Ohio

to

a

strong

Added to N. Y.

1945.

recent

Supreme

holding that property of

Legals List

Bonds of the State of Arkansas
are

it

elegible for purchase by
State savings banks,
announced on July 1 by

now

New

York

was

Elliott V.

Banks,

Bell, Superintendent of

along with the disclosure

nearly

leaves

ter

securities

of

and,

in
securities
regularly

course,

which

:

hundreds
are
listed

traded

are

over-the-counter

the

in

of

over-the-counter market is a very
extensive operation almost limit¬
less in its opportunities. The size
of

issue is

an

deterrent to de¬

no

of

68)

page

fair

practice

covered

of the Commission

them

matters

on

not

by rules and regulations
and has made

applicable in governing its

members. The NASD has assumed
the

responsibility

supervising

of

fair and accurate
newspaper quo¬

tations.,
In

'

.

summing up, may I say, to
mind, the
most
important

my

function

of

the

over-the-counter

market is the creation of the

mar¬

ketability for local securities. The
pattern is similar all over the
country. Business enterprises have

by the plowing back of
earnings. Then, the time comes,
grown

sometimes in the first generation
of

ownership, frequently in the
second, when public participation
in the business is desirable.

the

Here,

over-the-counter market

ables

them

to

raise

en¬

additional

capital, resulting in greater em¬
ployment, expansion of industry
As a further indication of the and
continued
sound, economic
size and scope of the over-the- development on which the past
counter market, it is reported that and future prosperity of this coun¬
the National Quotation Bureau, try is predicated.
*
Inc., which, publishes quotations
Securities of a great many of
for
over-the-counter
securities, the prominent corporations in this
velopment of

a

market for it; its

limitations

obstacle.

no

are

-

.

lists from 90,000 to 100,000 differ¬
ent issues in a year which dealers

have

indicated

nation

trace

can

into

ment

their

national

develop¬
lead¬

market

their

willingness ers to precisely such beginnings.
of further additions and removals
to buy or sell.
Currently these Silversmiths of Connecticut, carfrom the municipal section of the
sheets give market indications of
petweavers of Utica, textile mills
State's legals list.
; an
average of over 7,000 separate of the south, shipping firms on
Arkansas' have not appeared on issues
daily/excluding municipals. the Great Lakes,, lumber compa^
the list since 1933, when the State This service is issued
daily in nies of the northwest, etc. Here,
defaulted.
This
condition,
of New
York,
Chicago
and
San indeed, has been and will be the
course, was corrected many years Francisco. /
real romance of the business of
ago through the medium of an
When you think, therefore, of finance. It is for
that reason that
over-all debt refunding operation, the over-the-counter market, the
I
conclude
that
the
over-thewhich
is credited with having picture you: should have in your
counter market serves a very defi¬
strengthened
the
State's
debt mind is one of a mechanism nite economic and social function
structure to a degree not previ¬
through which securities are origi¬ —social, in that, directly and in¬
ously prevailing.
nally distributed and subsequent¬ directly, it has and will continue,
This fact has been demon¬
ly redistributed in large and small I am sure, to provide employment
blocks; of a mechanism that de¬ and the development of new prod¬
strated in the excellent record
of debt payments achieved by
velops and maintains a resource ucts,
even
new
industries,
to
the State under the plan and
through which investments may make for a better way of life.
the reinstatement of the State's »■ be liquidated
at moderate cost
and relative ease; a mechanism
bonds to the New York list conthat provides even the smallest
sequently occasioned no sur¬
community with a home market
prise in municipal bond circles.
.

,

.

,

WLB To

■

The

only

element

of

surprise

in the fact that reinstatement

made

been

not

previously,

that the New York
law regulating savings banks in¬
vestments requires a 10-year rec¬
ord
clear of default.
However,
considering

"better

ably

later

sums up

and

never"

than

the attitude of State
the municipal fra¬
.

■

Along with the State of Arkan¬
sas

bonds, other additions to the

New

York

$27,000,000

legals

list

value

for securities

and

included

unlimited

which

through

native

to

time

of

Gals la Conversion

com¬

system

part of a national
organized to serve
the needs and inter¬

Theodore

W.'Kheel, Executive
Board,

a

well

system

Regulate Wage

the area;

same

the

at

vast

a

munications is

Director of the War Labor
at

remote investor.

meeting on June 12, in New
York City of the Commerce and

The over-the-counter market is

Industry Association said that the

efficiently

ests of the most

prob¬

not

unregulated group of deal¬
For example, here in New

a

watchful

same

an

ers,

York

New

the

have,

we

York

Security Dealers Association. The
purposes of the Association are to
promote
and
uphold fair
and
equitable principles of trade, to

policing of
guided the
war

War

Board

Labor

increases which
nation in its all-out

wage

effort will be applied to wage

decreases

during the conversion
period to peacetime production; it
was
reported in the "New York
Times"

of

June

13

which

gave
highest standards of
other remarks Of Mr. Kheel as
and
integrity
street railway system is tax¬
follows: ■
the State
>
among the Association members,
able."
; • /v;;'"Alhambra,
and
Alhambra City and thus promote both the inter¬
"While I do not wish to be a
Turning to the post-war pros¬ School and City High School Dis¬ est of the investing public and of prophet of gloom," he said, "the
pect of pew municipal financing, tricts;
board's rules apply on a
Centinela
Valley Union its members.
wage
the Review observes that "Con¬ High School District (Inglewood);
The NASD is the national po¬ downswing as they apply on an
siderable increase over the vol¬ Fresno
County;
Inglewood; In¬ licing and regulating body. Act¬ upswing." However, he said, the
ume
of the war years is a cer¬ glewood
City
School District; ing upon authority granted to it board had received virtually no
tainty, though whether it will Long Beach and Long Beach City under the Maloney Act, N ASD has applications for wage decreases. -,
reach the extravagant total en¬ School and City High School Dis¬
Pointing out r that the board
adopted certain rules of fair prac¬
visaged by some remains to be tricts; Riverside* City Junior Col¬ tice both for the protection of used "four measuring rods" in its
soon.
The answer to: this appears lege District; Riverside County; investors and for the protection wage
decisions, Mr. Kheel said
to depend largely upon the will¬ San Joaquin County; Santa Ana, of members from unfair practices
they were (I) weekly take-home
and its Elementary School
and which would tend to lower the pay, (2) overtime payments, (3)
ingness or unwillingnes of tax¬
payers to approve additional in¬ High School Districts, and Santa standards of business conduct.
It straight-time payments and (4)

Cleveland's

municipally

owned

par
of 17

municipalities of
of California, as follows:

tax bonds

Pointing out that the course of
municipal bond prices is inextric¬
ably bound up with taxes since
their primary security is based
debtedness
and this in turn is Barbara County.
upon local tax-receipts and their
probably dependent upon the eco¬
Also added to the list were
price trend
largely
dependent
nomic. outlook following the war.
bonds of Norwalk First Taxing
upon
exemption
from
Federal
If the outlook iis clouded and un¬
District, Conn., and of Rich¬
taxation, the Review states that
mond County Board of Educa¬
"Tax receipts may reasonably be certain, restraint is more likely
to
prevail, though even under
tion, Ga.
Six municipal units
expected to be well maintained in
such circumstances agitation for
were
removed from the list, of
the post-war years although some
public works to accelerate busi¬
which three were deleted be¬
decline from the abnormal war¬
ness activity may
offset the dis¬
cause of no debts and .an equal
time level of tax receipts appears
inclination of taxpayers to supernumber as a result of a lack of
likely."
impose substantial
additional
information
required
by
the
,.V Among local municipalities the
charge to the huge Federal debt
banking department to deter-'
transition
period
may
present
requirements already existing. If
mine eligibility.
Those in the
greater problems than among the the outlook is
favorable, on the
latter category included Wake¬
States, according to the Review. other
hand, the prevailing op¬
field,
Mass.,
Greene
County,
"Such communities have neither
timism of the times may result
Pa.,
and
LaCrosse
County,
the reserves nor the variety of tax an
ready approval of the many
Wise.
sources
to draw upon that the
improvements for which a good
It is unfortunate that the mu¬
state governments have and, while
case can always be made
by po¬
real estate valuations have recent¬
nicipal officials in question did
litically-minded officials, to whom
not see fit to
furnish the data
ly shown a reversal in their pre¬ spending is
advantageous and at¬
vious downward trend (thus in¬
requested by the department in
tractive."
view of the important purpose for
creasing real estate tax receipts,
The Review concludes with a
which it was sought.
While ap¬
their primary source, of revenue),
such increase will probably not survey of the significant shift in pearance or non-appearance
on
in itself offset the higher operat¬ ownership of state and municipal




That

calculated.

be

can

5,000 corporations of various sizes
and types making up the potential
current market of over-the-coun¬

local

ternity..'

issued after Jan. 1,

significant,

as

State of Arkansas Bonds

designed to eliminate tax

Also

such

sustaining
price factor in the market."

provide

exemption from utility revenue
bonds

of government
the maturing
municipals so

relief should be

officials

Bill)

supply

the demand from those seeking

had

of

now a

in

emission

post-war

outstanding

was

be subject to further

atack. Even

increase

some

that, with the certainty of con¬
tinuing high Federal tax rates,

municipal

tions issued in connection there¬
with

with

securities

listed

market, many enjoying more actiye markets than on the ex¬
changes. From these few figures
it will readily be seen that the

proprietary

into

perhaps ques¬
wisdom,
the
obliga¬

some

to

have

equitable

more

a

ad¬

of

addition,

out, and adds that active efforts
are being made in many quar¬
ters

Under

produc¬

already introduced new sources
of revenues, the Review points

tribution

tax

tax-exempts and

local

and some

exploring,

are

no

tial

iota! tnat tne poten¬

tms

irom

is

tion

ing fields so largely pre-empted
by the Federal and state gov¬
ernments, many municipalities

the

r

major tax

the

rates, taxes,

probable trend of interest
volume of post-war
financing, and demand factors,
these constituting,
according to
the investment organization whose
views. it expresses, the basic dejf tferminants of price trends in the

confront

which
governments."
ing

at least $3,000,000
and also at least 300 shareholders

of

assets

of mu¬
nicipal
bonds,
such
increase
will be largely offset by reduc¬
the

of
In its annual "Mid-Year Review

derive

who

those who do.

jWiaiiicfpai News & Notes
.

such

and

vantage from their ownership

TRIPP & CO. INC.
Wall Street, New York

taxation

be expected to gravi¬
and more away from

may

holders

4(9

(Continued from

ing

bonds, municipal obliga¬ each.
Only about 2.200 of these
tions will provide increasingly the
have registered with the Securities
Only escape for those subject to and
Exchange Commission and it

September 1, 1950-52

To yield

The OveMhe-Conntei Industry

pronounced
reduction
in
standing
obligations
of

the New York legals

list,

or

any

maintain the

ethics

business

_

has

to

over-the-counter

the

taken

adopted by the Commission

rules

transactions

govern

over-the-counter
its

them

made

the

in

market, and
rules of fair

own

practice applicable to all its mem¬
bers. In addition, the Association
adonted

has

other

certain

rules

State for that matter,

other

itself

not

abundance

indicate

always
or

does
an

lack of virtue in a

nied

security, it cannot be de¬
that the inclusion thereon

adds

to

given

the

marketability of

the

securities in question.

for
the
unit, for
example, to suffer deletion or
fail to qualify solely because of
bonds

the

of

regrettable
any taxing

failure of the

fiscal officer

the State authorities
with the information they need1
to

oblige

in order to determine

no

existing WLB rules

backs

in hours

of work

on
or

were

cut¬
ovei>

time payments, he said, but
decreases

few

very

in wage rates wilt

be

permitted at the present time.
law, he reminded his audi¬
ence, permits no decrease or in¬
crease
in wage rates prevailing
The

during the period from Jan. 1 to
Sept. 15, 1942, except to guard
against gross inequities and to aid
efficient

in

war.""

■

prosecution
■.

Manufacturers

of

the

.

switching

from

output to peacetime produc¬
tion will very likely be unable to
seek wage adjustments under the
war

Accordingly, it would be ex¬
tremely

change in wage rates. There

eligibility,

War

said.

prosecution clause, Mr. Kheel
However, some companies

return to civilian production may
find
themselves
in
a
difficult

competitive position and

.j peal for

can

ap-

wage adjustments under
the plea of "gross inequities."

,Volume 162;

V

Tie Stalls of Cartels

In Post-War

Europe

than favorable toward

ments

nothing in the circumstances
surrounding
their
development
suggests that they are so ingrained
in
the
German
character that
But

109

problem of an international anti- States does not' come to this prob¬
qartel convention. T know of ho lem hat in hand, trembling, and
as
a
reason in the logic of trade or of
suppliant, we have a very
security to expect that the atti¬ substantial stake in the post-war
tude of Russia would be other world, "and we are in a position,
program,

(Continued from page 104)

the entire

apology either to

such pronounce¬
semi-official sources

and

from

legitimately

;quite
to

our

willingness to take the
destroying governmental

our

in

lead

barriers to, and to take the posi-t
tive steps necessary to facilitate}

j world

without

and

posterity, to use

upon

neighbors or
strength

our

trade; and then to seek by

every means at our disposal, short
of military, to destroy all private -

barriers

to

trade.

:
This is an opportunity of a life-i
slight !and our resources to make that
strength to this conclusion.
Is World what we would like it to! time; certainly no one is entitled
In the matter of cartels, at i. in his own span of years to mord
protect and divide would have
there more that can be said, con¬ be.
been much less compelling.; And
fidently? Recent statements from least, if we have convictions I than one such chance. We may not,
the encouragement which the car- tney cannot be removed " without
France, too,
are
anti-cartel in pan see little excuse for subordi¬ win the whole program, but wef1
tel, as an instrument so easily results fatal to anything we are leaning and the French can cer¬ nating them at this stage of the cannot afford to shoot for less,
-f,
Let me tell you a story* that
adaptable (and, in fact, so readily not willing to see destroyed. I tainly be said to have no long and game to the inclinations, as I ap¬
adapted) to the purposes of an ag¬ will suggest that the task of erad¬ deep tradition to overcome on this praise them, of any other nation may help to point up my conclusion. The other day a little girl,
gressive government, must have icating *' Naziism and militarism score.
or group of nations in the world.
received at the hands of the Ger¬ from German life—a task which,
a
friend of the family, came to
In short, the situation in Great We can move vigorously toward
I take it, we are committed to
man government over many dec¬
an
international
agreement
to our door, selling tickets ltd vari¬
Britain and on the continent of
ades must not be overlooked in perform—is fraught with fully as
ous
attractions to be presented
Europe is such that if the United compete; failing its accomplish¬
analyzing and appraising the sta¬ much difficulty, and as much that States feels
ment we can still have a lot of shortly at a church fair. She was.:
deeply and is pre¬
tus of cartels in Germany. German threatens to destroy the essential
pared to move boldly and with competition by competing. It is particularly enthusiastic about a
laws, reflecting public sentiment qualities of Germany as we know conviction toward an
interna¬ not without point as far as our drawing which was to be held, the
generally we may assume, have it, as the task of purging cartels tional
agreement outlawing car¬ relationships with other countries prize to be a live pig. "Buy a *
been
highly favorable
to
the from the German economy.
tels and restrictive patent devices are concerned that every move
As
a
first
necessary
step 1
growth of cartels, but even here
ticket, Mrs. Lewis; only fifty j
we make in any anti-cartel cam¬
and contracts through which car¬
would urge that the Allied mili¬
it should be noted that the laws
tel results are frequently gained, paign looks away from isolation cents and you might win him—
governments in
Germany
have
made
of
German
cartels tary
and toward a program for Ger¬ and toward a fuller, working in¬ he's a beautiful pig!" "But Nancy,".
quite different organizations at suspend all cartel operations and
ternationalism.
I
suppose
then,
many
which will remove that
my wife said, "What would I pos¬
commandeer all cartel records. I
different times. It is not merely
that in answer to the question,
would institute an investigation, country as a source of cartel in¬ 9What will be the status of car¬ sibly do with him; I have no place :
that the laws have changed, al¬
fection and eliminate her cartels
though this too is important as re¬ industry by industry of the case
tels in post-war Europe," I am to keep him and I wouldn't know ,
as
devices for the revival and
flecting a change or development upon which any proposed re¬
perpetuation of German aggres¬ really saying that it depends, cer¬ how to take care of him.!' "Oh,
in public opinion.
The point is sumption of cartel activities might
tainly not entirely, but in a very
that's all right, Mrs. Lewis, buy
I would establish the sion, we have a fair chance to
that cartels have changed—even be based.
accomplish much that we set out large measure, upon the depth of a ticket. You won't win him!"
;
in Germany. Since 1897 at least, almost, but not completely, nonour own convictions in the desir¬
to do.'
;
presumption that at
"in the eyes of the German courts, rebiittable
How about a ticket?
ability of free world trade, and
Bear in mind that the United
the Peace Table, cartels would be
the cartel
[has been] a lawful
»■<
manifestation of the right of en¬ written out of the German eco¬
trepreneurs to exercise freedom nomic system; and jl should con¬
of contract" (Nathan, p. 65); and fidently expect that sometime be¬
since the Cartel Decree of 1923, fore the writing of the Peace, the

of her main indus¬
development, the urge to

in the

trial

■

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4400

years

.

as

I

have

seen

lend

some

f

.

cartels

had

have

"official

statu¬

tory recognition as legal entities"
(Nathan, p. 67).; One . authority

notes, however, that while the le¬
gal position "may be said to have

improved" , (Nathan, p. .67), cer¬
tain sections of the Decree (mak¬

ing it possible under certain cir¬

"almost"

would

cumstances for members to with¬

international

draw, and making the application
of
boycotts
against
outsiders
"very risky") substantially "in¬
creased the uncertainty confront¬

straints

ing cartel managements" (Nathan,
80). Nathan thinks that not

p.

in

even

tel

conception "was the Car¬

Decree

basic

force

that

changed; the

in

any

official

attitude toward cartels''

German

(Nathan,

69). My

p.

that

is

a

way

own

"com¬

become

pletely.";- ".--'".V.-'V.y'
Now, what else should be done
to sew up the German situation?
Certainly we should, in addi¬
tion to striking at internal or do¬
mestic: cartels, eliminate any Ger¬
man participation in any private

enforce

Such

cartel.

.

re¬

it may be desirable to

as

activities of
be pro¬
vided much more effectively by
governmental processes and peace
terms than by the maneuverings
of private cartels.
>
Any contracts involving price
fixing, production restrictions, di¬
visions of markets, etc., should be
the
exporters

upon

German

opinion declared wholly, inoperative.
With

it

certainly reflects, .a
change in attitude.. Nor should I

A Bank Statement that any

can

Woman

Condensed Statement
Our

fect

any

upon

production which

want, for any reasons, to

we

to some;-authors, .the
Decrees of 1930 and 1931 which

the government power to in¬
validate price contracts of car¬
tels and to authorize parties to

German industrial combines, both

To

permit and encourage, we should

alierly,

as

gave

the, contracts
contracts

as

to

the

withdraw

government felt

to be too restrictive of

distribution,

or

such

or

production

of

economic

freedom, to the detriment of the
economy. .But particularly in this
connection

it

the

contrast

is

worth

cartel

while

under

to

Nazi

may

nroceed

such

to

break-up

a

this.indebtedness we' have:

meet

of

IT, S. Government Securities

^

economic, political or military
aggression.
Finally, there must be an open

Loans and Discounts.

Other Securities

struments

of

all

of

to

comers

the

German

the

.

.

7,

.

.

.

.

.

.

.

.

549,112.,236.74

deposits

secure;

77. ;T
•-J

required, by law.)
.

.

.

»

v.

♦

.

.

10,943,137.96

.

44,691,524.30

.

.

..!•

1,050,000.00

.

.

.

......

.

$162,993,725.3#

.

.'•£ ;.

.

$748^7,028.22

'

.

.

■.

;

7.

■

7,

and for other purposes as

countries, as will prevent them
serving in any way as in¬
either' of monopoly or

from

to

.

($131,619,773.11 pledged lo

in Other

Federal Reserve Bank Stock

door

,

;

.

■** i

1945

of close of business June 30,

Cash in Vaults and Due from Banks

-

industries

over

as

(includes $112,487,748.09 U. S, Deposits);

,.

internally and in their holdings,
by any device, of interests in or
contrlos

Understand

can

Deposits and Other Liabilities .are
.

be inclined to pass over, as cav¬

or

i

weather eye to the ef¬

a

Man

"■

f

'

*

1

l

First

Mortgages,

Customers7

rich

.

.

Liability

on

.

.

.

*

...

Acceptances

.

•

.

.

.

.»

6,410,325.34

.

156,338.39

rule with the cartel in the 'twen¬

stores

ties, and to note the changes in
structure and functions which, to

fice.

strictive arrangements based upon

Other Real Estate

.

124,336.13

again (p. 64), re¬
sulted in an organization that "re¬
sembled the pre-Nazi organiza¬
tion in name only."
I shall not
detail the changes; it needs only
to be pointed out that cartels have
been greatly reduced in numbers,
and that the Nazi government has
bent them entirely to its military

monopolies presently ex¬
isting in Germany should be de¬
stroyed, and any patent system
hereafter permitted in Germany

Accrued Interest Receivable

.......

2,054,961.21

Other Assets.

.

quote Nathan

as quasi- governmental
agencies, both in Germany and in
occupied countries..There is noth¬
ing strange in all this; the point is,
simply, that to those who say the
cartel
in
Germany
cannot be
eradicated, the apparent answer
purposes

would

seem

to be: 'The Nazis did

Patent

should

be

Destroyed?
I

am

quite content to be less
dogmatic on the

than completely
matter
many.

of

the cartel

within Ger¬

Organizations which have

from and been nourished
by social, economic and political
conditions that have prevailed for
many
decades may not neces¬
sarily be indigenous and "nat¬
ural," but it cannot reasonably be
denied that cartels hold a pretty

position in the German
"way of doing things," and that
they will .be difficult to root out.




re¬

Banking Houses,

so

constructed

as

Total

.

.

.

-

.

.

.

.

Meet Indebtedness.

to

...

......

....

.

.

.

.

.

.

.

•/.

V;;

«

.

9,941,098.63

.

.

l'\.* S 'T:

102,038.92

.

.

$787,579,723.13

.

.

\1

t

.

■

r'^h'r-;

to

is. Leaves

$ 39,072.694.91

.

.

\

s'

:

■

•

,

technical

advance, with the least
possible after-effects in the way
of monopolies and monopolistic
arrangements.

;

"

<'Y

Capital, $15,000,000.00; Surplus and Undivided Profits, $24,072,694.91

''

;/

Much of this program will re¬
quire the full cooperation of the
few neutral countries remaining
;rl the world, both to work out
the provisions as stated, directly
and fully, and also
to prevent

BOARD

.C,C

■■■<-('

OF DIRECTORS

;

industrial

behind

controls

neutral

from

ROBERTA. DRYSDALE

tral

governments

to

our

way

of

-

*

7V;

,

:

ing. &

Research Corporation

GEORGE DOUBLEDAY
■

Chairman,

RALPH

PETERS, JR.

-"

7

President

,

Company

HERBERT J.

STURSBERG

Treasurer, Livingston

JOHN R. McWILLIAM
First Vice President

In Government Service

EDMUND Q, TROWBRIDGE

E. MYRON BULL

President, A. H. Bull &
BRUNSON S. McCUTCHEN

ETHELBERT IDE LOW

Home Life Insur-.

Company

!

;

SIDNEY A. KIRKMAN

.

7

as

to the probable po¬
on the treatment

sition of Russia

to be accorded to German cartels,

German participation in interna¬
tional
cartels, and the broader

The

Corn

Co*

Inc.

Consulting Engineer
i

id

■

-•

"

Member Federal Deposit Insurance

Corporation.

..

assurance

Worsted

JOHN H. PHIPPS

7

Ingersoll-Rand

HOLLOWAY
W. R. Grace

Vice President,

Mills, Inc.

Company

\

I have said nothing up to this
ooint, and I am sure that there is
very little that can be said with

j

Chairman, Nichols Engineer-

ante

Russia's Position

-

'

C. WALTER NICHOLS

Chairman,

thinking in this regard.

WILLIAM G,

HENRY A. PATTEN

&

7.";

Chairman

masks.

feeling, which I am sure
wholly without foundation
In recent diplomatic
history, that
ways may be found to bring neu¬

;

Vice President

DUNHAM B. .SIIERER

a

is not

/

Drysdale & Company

.

1 have

sprung

secure

monopolies and

achieve what may seem to be de¬
sirable in the way of encouraging

operating
Can German Cartels Be

of¬

patent

German

it!"

patent

Exchange Safe Deposit Company operates vaults in
conveniently located throughout the City of New

the 74 branches

United States War Savings Bonds

and Stamps are on sale at

56 of
York.

all offices.

'} i

t

THE COMMERCIAL & FINANCIAL CHRONICLE

110

ier

Calendar 0! Hen Security

a

head

Co.

&

Peabody

Underwriters—Kidder,

underwriting group.

the

Offered

at $104

5

July

underwriting

group.

at

INC.

outstanding and is
owned
by
Nash-Kelvinator Corp. (being
65.17% of total outstanding stock).
and

issued

is

stock

R.

and Mercier,

and

$100),

(par

CO.

19

June

on

cumulative

4 V2 %

shares

54,694

common

(par $10).

(par $10).
14.

Eberstadt & Co.
is
principal underwriter.
Offered—Preferred stock offered July 3

Underwriters—P.
named
at $51

June 28.

FORGING CO. on June 7
registration statement for 30,000
cumulative convertible preferred
stock and common stock. The dividend rate
a

of

shares

heads

will be sold for
will be filed by
amendment. The number of common shares
to be registered will be filed by amend¬
ment.
The 'common stocks is being offered
by >a number of stockholders.
The regis¬
the

of

company,

covers 20,000 com¬
warrants for the pur¬

stock purchase

mon

shares of common issuable

chase of 20,000

the exercise of the warrants and
shares of common for conversion

upon

120,000

preferred.

of the

bonds.

Details—See issue of June 28.
Underwriters.—None.

statement for 150,000 shares
cumulative preferred stock (no par),

registration

Details—See issue of June

14.

Is offering to the
its 56,894 shares of Series A
and 42,012 shares of Series B
the right
to exchange such
shares, on a share for share basis, for
the new $4 preferred, with adjustment of
dividends of 20 cents on each share of
Series A and 5 cents on each share of
Series B stock exchanged.
The remaining
51,094 shares and the unexchanged shares
will be purchased by the underwriters and
offered to the public at a price to be filed
by amendment.
Offering—Company
of

preferred
preferred

Underwriters«— Union
Securities Corp.
Harriman Ripley & Co., Inc., head

and

the group of underwriters.
Offered July 2 at $108 per

STERLING DRUG CO. on June 5 filed a

statement for 125,000 shares
cumulative preferred stock ($100

par).

Dillon

Co.

&

the list of underwriters, with names

be

others to
Offered

July

;'

and div.

filed'by amendment.

at

2

$102.50

y

Kid¬

and William Blair &

CO.

MACWHYTE

%'

filed

20

June

on

stockholders.

Details—See issue of June 28.

Offering—The price to the public will
be filed by amendment.
Underwriters—Central Republic Co., Inc.

CO.

TRAILMOBILE

THE

$2.25

SKELLY

OIL

CO.

filed

20

June

on

for $10,000,000 20-

registration statement

1965.

year 2%% debentures due July 1,
Details—See issue of June 28.

by

filed

be

will

public

to

Offering—Price

a

amendment.
Dillon & Co, is

Underwriters—Eastman,

principal underwriter.

named

TUESDAY, JULY 10
registra¬

CRANE CO. on June 21 filed a
tion

160,000 shares of 3%%

statement for

filed

will be

public

to

by amendment.

A
Underwriters — Underwriting
by

Stanley

Morgan

Clark; Dodge & Co.

*

ferred

stock,

par

for

40;000

convertible

cumulative

pre¬

$50.
underwriters

Underwriters—The

are.

W.

RUPPERT

JACOB

is
and

Co.

rate

dend

filed

OF

CALIF,

12

June

on

registration statement for $25,000,000 2%% debentures due June 1, 1970 and
a

250,000

cumulative

$3.75

shares

preferred

a.m.

will be filed

underwriters
Bids

filed

22

a

registered 15,000
being sold by the
all remainder for the ac¬
shares

Of

and

company,

certain* stockholders. -

will

received

be

has

CO.

reimburse

will

used

be

Underwriters

,

Details—See

issue of June 21.

Underwriters—Dillon.
is to

head

Read

the underwriting

&

Inc.,

Co.,

int.

The'First

by

group.

2, the debentures at "101"
the preferred' stock at $100
per share and div.
Offered

and

Boston Corp. and
Merrill Lynch, Pierce, Fenner & Beane.
headed

July

and

PAPER

CHAMPION
June

filed

22

and

1965,

stock

preferred

&

CO*,

FIBRE

on

registration statement for

a

3% debentures due July 15,
100,000 shares of cumulative

$13,000,000

rate-

Dividend

par).

(no

filed by amendment.
Details—See issue of June

will be

NEW
List

of

statements

days
on

ago,
which

in

normal

FILINGS

Issues

whose

filed

were

Underwriters

registration

less than

heads

the

STEEL

has

CORP.

filed

Goldman,

—

28,
Sachs

&

of
underwriters,
others to be filed by amendment.

twenty

grouped according to dates
statements will
become effective, un¬

Co.
with

THURSDAY, JULY 1Z

less accelerated at the discretion of the

PHILADELPHIA

SEC.

CO.

IRON

mortgage

25-year

various

of

Business—Manufacture

on

READING

&

&

filed

23

June

COAL

$1),

and

a registration
shares (par
purchase a like

to

warrants

number of common shares.

to purchase

Offering—Warrants
16 filed

a

shares

of

mon

and

mailed

on

July

18,

stock, par $100.
The
dividend rate will be filed by amendment.

record

July

16,

1945.

rants,

holders

Details—See issue of June 21.

Offering—The company pians to offer to
holders

of

common,

to

its

of

to

the

new

one-twentieth

each share of
rants

and

Class

B

of record July 7, pro rata rights

subscribe

ratio

stock

common

will

preferred

of

one

in

share

such stocks held.

expire

bonds

income

the
for

The war¬

to

In

—

tached may

to

which

use their

holders

of

mortgage

the

stock

company

6%

certifi¬
are

Co.,

the subscription price for the new eommon
shares
of

up

bonds,

these

tion

of

to 95%

A-2

(6-26-45).

■

a

principal

by

public

will

be

filed

and

Underwriters—Dillon, Read & Co., Inc.,
the underwriting
group, with names of others to be filed by
amendment.




23

50,000
Series

filed

A.

registration

a

&

GAS

statement

'"

A

...

3%%

1964

due

series

at 107, $12,000,GOO serial preferred
stock, 5.10% cumulative preferred series.
Underwriters-r-Stock and bonds will be

and names of
amendment,
Registration Statement No. 2-5801.
Form
at competitive bidding

sold

underwriters will be filed by

!

(6-27-45).

BAUSCH

filed

Si

LOMB

registration

a

OPTICAL

statement

pf stock purchase warrants, %nd'common
stock purchase warrants entitling the hold¬
ers
to
purchase an aggregate of 90,000
shares of common.

Address-r-Borden

shares

on

Ripley

head the

Co.,
under¬

&

AND

VARNISH

CO.

y.
of

optical

and

new

and

tQ issue rights to

preferred and

com¬

stockholders to subscribe to new com¬
stock

in

common

for

one

the
for

ratio

each

share

of

5%

of

one

share

of

preferred share
common
for

new

prior

'.

gan Stanley & Co., Clark,
Dominick
Dominick, First
Harriman
&

y.

•

Mor*:
& Co.*

are:

Dodge

Boston Corp.,

Ripley & Co., Inc., Hornblower
Kidder, Peabody & Co., Merrill,

Weeks,

Lynch, - Pierce, Fenner & Beane, Fa S.,
Moseley & Co., Paine/Webber, Jackson &
Curtis, Smith, Barney & Co., Union Se¬
curities Corp., White,. Weld & Co., Dillon,'.
Read & Co., Inc., and Kuhn, Loeb & Co.
(6-29-45).

Form

..

registration statement for $3,income debentures due May 1»

filed a

par,

.y..:

-■

•

Title

—

-

/■;■■■ ■' Building, '

i.

Trust

&

:

a '

y

ond operation of'

Business—Maintenance

irrigation works, etc;
v >
* : A;,
'■Offering—Company is Offering, to hold¬
ers
of $3,343,500
3%
income bonds due
bonds

income

stock,

and

outstanding

share

one

exchange

in

of

"

com-,

$750>„
connection.

bond, 'in
reorganization'.

income

1

with the plan of

its

each

for

a

/

y

Purpose—For exchange of securities,

)

y

Underwriters—The Dunne-Israel Co.

~

Registration Statement No, 2-5813.
Form
S-l (6-29-45).
A 'Ay
A'-yAv; / ■
VALENTINE
and
ment

BROADWAY

ON

ARTHUR

GAGE

BOND

FELS

have filed

CO.

covering $356,600 4 %

Address—15

Mo. :
■ y
Business-—Hotel.

bonds.

City,

v

Street,

Tenth

West

CORP,

MORT¬

&

registration state¬

a

Kansa#

;

'- Ay/y'A.

,

A'.y
aggregating $356,-'
500 will be exchanged for the $356,500 of'
present bonds now outstanding,
together.
with interest coupons attached.
None of
Offering—New

the

bonds

new

;

bonds

will

be

sold

cash

for

or

other

property, but exchange will be made:
only .with existing bondholders.
%
Underwriters—None. A '
'■ "•
.

.

j

Form 1

Registration Statement No. 2-5814,

S-l

(6-29-45).

-■'A.

y.„

.

Avenues,

of

Ontonagon

used

be

will

portion

a

to

DATES OF OFFERING

S-l

off

Corp.,

Fibre

We

the

of

present
days

twenty

a

offering

i

,

.

.

are

filed

a

5%

due

have

not

issues

of

whose

but
been

deter¬

to us.

unknown

..

..

on

Feb»

registration statement for $3,-.'
15-year sinking fund deben¬
1960

200,000

and

shares

of*

the stock registered
Issued and outstandingbeing sold by stockholders.
stock,

common

shares

132,000
and
)
Ulr

ago,

ENGINEERING CO.

AMERICAN

27

tures

POWER CO. has filed a regis¬
for 39,413 shares of 4%
preferred stock ($100 par).:
■
Address—1220 Idaho Street, Boise, Idaho.
Business—Public utility, company.
Offering—The price to the public Will
fre filed by amendment. .
* y
Proceeds—Net proceeds will be used for
additions
to
the
company's production,
transmission and distribution facilities.
Underwriters—Groujp i3 headed by Blyth
&
Co., Inc., Lazard Freres & Co. and
Wegener & Daly, Inc.
Registration Statement No. 2-5807. Form
IDAHO

list

a

more

or

dates

mined or

QOO.OOO

(6-28-45).

below

whose registration statements were filed

$400,-

bank loan of $500,000
made to procure the balance of the pur¬
chase of the stock
of Ontonagon Fibre;
for
improvements,
$1,000,000,
and
for
working capital, $540,000.
Underwriters—Group- is headed by Van
Alstyne, Noel & Co.
Registration Statement No. 2-5806. Form
pay

UNDETERMINED

re¬

Of

are

Details—See issue of

'share

f

•;•

-

■

,■

1»

1

Alstyne,

Underwriters—Van

underwriting

Noel & Co.
with

th®

heads

the

names

of others to be supplied by amend-*

ment.
'

A

group,

'

.

POWER

ARKANSAS-MISSOURI
4

filed

"

registration

CORP.

statement

on

,

000,000

a

GAS

&

FUEL

Dec.

$2,000,000 first mortgage bonds, series

*

first mortgage, and collateral trust
Interest rate will be filed

!■

.»

under

one

•„

man¬

of coal into by-products,
etc.; also owns common stock in Massa¬
chusetts gas companies.
Offering—Price to public will be filed by
conversion

Proceeds—Net

.

together

with

proceeds of $15,000,000 2'/*% 10-year bank
loans
will be applied to the redemption
at 101 Vi

filed

Of the $55,497,000 first mortgage

CAMPBELL

S.

loir

INC.

on

June 9

$2.50

par)

(no

CO.,

registration statement for 18,000
cumulative preferred stock-

a

shares

common

with warrants and 18,000 shares
stock
(par
$1).
The common'

shares are reserved for issuance upon exer-:

cise

of the warrants.

■

Details—See issue of June

price to
amendment.

Offering—The

.

proceeds,

7, 1944.

Offering—The bonds will be offered
at competitive bidding.

sale

A.

by amendment.

amendment.

1974.

Details—See issue of Dec.

ASSOCIATES

registration Statement for $40,-

Business—Coordinates

a

A, 3 Va %, due Dec. 1,

WEDNESDAY, JULY 18
EASTERN

•

March 8.

! Offering—The debentures will be offered
iat 100 and the: common stock at $7.50 per>

for

-

,

Address—250 Stuart Street, Boston, Mass.

instruments.

Offering—Company plans to offer 47,shares of new preferred in exchange
a
like amount of presently outstand¬
ing 5%
cumulative convertible preferred

on

mining facilities and plants;- including

Underwriters—Underwriters

;

bonds due 1965.

Business—Manufacture

and

Proceeds—Proceeds will be used in con-"

nection with a program for modernizing •
and
expanding company's .'manufacturing,

'

Review

and

for

company

000; "to

50,000

St. Paul Street, Rochester,

War¬

Long Island City, N. Y.

has filed

Address—635
N.

■>

v

cumulative

4%

(par $10).

registration statement for

of

mon^

has

CO.

for

preferred stock
(par $100) and 152,500 shares of common
of

for conversion

shares reserved

preferred and 90,000 shares of com¬
reserved .for issuance .upon exercise

S-l (6-28-45)..

shares

of

preferred
indeterminate number

convertible

cumulative

common

shares

100,000

for

statement

a

has

tration. statement

Offering—Price to public will be filed by
\
A
v
T
Proceeds—Net proceeds will be used to
redeem at 106 of $13,000,000 first mort¬
bonds,

,

of the

.

ELECTRIC

A

CORP.

CONTAINER

(par, $25), an

of

Form

each four shares of common held.
The
preference stock,
Stock will bear dividends of $3 subscription price will be named by amend¬

shares

filed

imburse

N. Y.

gold

,v\A
,

investment plans.
Form

Proceeds—Proceeds

$10,000,000

mon

a

filed

amendment.

AA;

A

'

,

NATIONAL

investment.

STATE

per

preferred,

of

common.

will expire at noon on Aug. 4, 1945. stock will be purchased by;
fhe Underwriters and sold to the public. ; ' *

Offering—The price of
the preferred
stock, to the public is $26 per share.

first mortgage bonds, due
1973f
and
150,000 shares of cumulative
preferred stock.
Interest rate on bonds
and dividend rate on preferred stock will
be determined fry competitive bidding.
Address—108 East Green Street, Ithaca,
for

$700,Ay;
York,

agement production and sale of bituminous

Drexel & Co.,

PAINT

COOK

has

CORP.

mon

June

Y.

DWN

coal,

made

amendment.

and Reynolds & Co. head

YORK

of

$100

at

share

one

Oct, 1, 1959, units consisting of $750 of 4%
.

17,%';'a a

.

stock

,

of

shares

Phoenix, Arizona,

Form

■-^.y.

Sponsor—First Investors Share Corp.

'

(6-27-45).

preferred

new

rants

Address

DWP Plans,
AA"
Street, New

and

Broad

Purposes-Periodic

r

Registration Statement No. 2-5800.

•

•

Unsubscribed

no

Registration Statement No, 2-5805.
S-6 (6-28-45).

Oakland, Cal,

Sponsor—Insurance Securities, Inc. '

;

and

heat"

of

1970), and $4,458 shares of common stock,

for

Underwriters—Harriman

Inc.,

N.

units.
13th Street,

to

basis

on

each: five

343,500 4%

$1,500,000;

Plans,

,

has

Business—Investment company.

share

has

318

been

writing group.

the

000,,
Address—50

A

INC.,

manufacturing

MAEICOPA RESERVOIR & POWER CO.

re¬

having

stockholders

and

DW

$2,800,000,

Plans,

A'C-

SECURITIES,

: A;v-"-

1

Offering—Company will offer to common >
of record July 21 rights to»

registration statement for securities

a

a

NEW

for

-

JULY 16

the

y i
York,*

stockholders

SHAKES CORP. has

INVESTORS

follows;

as

registration statement for 900 units
of
$1,000
each,
single- payment
plan,
Series
T,
to create
575,000 investment
units and 1,750 units of $1,200 each, ac¬
cumulative plan, Series D, to create 675,000

c-i

call

Form

.

Address-—325

Y.

Business—Mining,

A-2

scientific

these bonds on April 1, 1945.

21.

filed

A

.

conversion of

upon

'

Others

Corp.

issuance

Registration Statement No. 2-5812.

to¬
251961,

1,

Oct.

TUESDAY, JULY
FIRST

4%%

investment

for

$175,000,000

of the original amount
5% payment in reduc¬

The unsub¬
scribed portion will be offered to the pub¬
lic through
underwriters^
The price
to
July

of

be

<:

,

selling materials for the control
and cold, sound and motion, etc.

mon

underwriters
Smith, Barney. &

Securities

Registration Statement No. 2-5799.

at¬

bonds in payment of

retirement

the

filed

be

A '
applied

(EWT), on July 23, 1945.
Registration Statement No: 2-5804.
(6-27-45)..
AA
j: ■ A'y yy

Principal

&

Loeb

Mellon

com¬

exercising war¬

general

the reorganized

of

cates

of

1945,

will

.

will

Business—Investment company.

will be named by amendment.

shares for eaeh 10 shares held will be

registration statement for 490,000

preferred

4

public

to

A-2

total $92,333,000.

Kuhn,

subsid¬

11 a.m.

price to public will
by amendment.
proceeds will be used, to¬
gether with other moneys to be supplied
by Bethlehem Steel Co., a subsidiary of
the corporation,
in the purchase or re¬
demption on or before Oct. 1, 1945, of the
$22,333,000 consolidated mortgage 20-year
sinking fund 3*4%, bonds; Series F, the
$30,000,000 of consolidated mortgage 20year sinking fund 3% bonds, Series G, and
the $40,000,000 consolidated. mortgage 25year sinking fund 3J/4%
bonds, Series H,

S-l

Details—See issue of June 28.

THURSDAY, JULY 5

telephone

Underwriters—Bonds will be sold at com¬

Offering—Offering

Underwriters

N.

1'

and

petitive bidding and names of the under¬
writers will fre filed fry amendment.
Bids
will be received by
the company before

iron

and steel products, etc.

are

Form

demption on Oct. 1, 1945, at 105 and int.
The balance required for the redemption
of the 3 lU %
debentures will be obtained
from other funds of the company. A

a

and,

statement for 412,596 common

R. J. REYNOLDS TOBACCO CO- on June

ward

sinking fund
2%% bonds, Series I, due July 15, 1970: ,
Address—25 Broadway, New York/N, Y.

gage

registration
course

and its operating

Proceeds—-Proceeds

registration statement for $75,000,000 con¬
solidated

'

3 l/a Vc; cumulative preferred stock. ,
Address'—22 East 40th Street, New

;

A

.

year 3*/4%
debentures,: due
which
company
intends to

BETHLEHEM

Paine,
Stone &

by

and

amendment.

by

15

JULY

Business—Public utility.

group

& Curtis
Blodget, Inc.

Offering—Price

Sachs & Co., New
A 'A
v. --ARegistration Statement No. 2-5798. Form
S-l (6-25-45).

SUNDAY,

a a

headed

service, mainly telephone service.

is

group

.'A A a

iaries is that of furnishing communication

v:;..•'

Proceeds—For

Offering—Offering price Of preferred and
common
stocks to public will be filed by
amendment.
"
'
AA ;■ '
Underwriters — Underwriting group is

$5,200,000 first mort¬
series due 1969, now

(6-27-45). AA"' V"-a;A -y'yA vyyyy, .' y

pany

:

Form

:

$175,000,000 35-year 2%% debentures, due
l, 1980. o A: :a;
Address—195 Broadway, New York, N. Y.
Business—Principal business of the com¬

...

Underwriting

—

"

.

JOIINS-MANVILLE

served

106

Aug.

Goldman,

by
York.' 'AA:"

;

•

a

those of subsidiaries.

to

,

•

.

CORP. has filed a
statement for 170,000 shares;
3 */2%y cumulative preferred stock (par
$100) and 170,000 shares of common, re-,

AMERICAN TELEPHONE & TELEGRAPH
CO. has filed a registration statement for

redemption of out¬
standing
53,200 shares
of 4*4%
cumu¬
lative preferred stock" at $105 per share,
which will require $5,586,000, exclusive of

..

pay-**

'periodic

or

registration

sale

at

Registration Statement No. 2-5803.

S-l

a; •,>'••..

proceeds

;

from

redeem

Jackson
and

A

"

single
.

(6-29-45).

for

'

.av

'.

,

subscribe

Webster

company for

dividends.

A'

.

;of

company

Webber,

\A, "
eight

f -A v

■

to

Underwriters—Group

\
retail stores,
including branches, located in Washington,
Baltimore, New York and Easton, Md.:
Offering—Offering price will be filed by
amendment.

proceeds

used

making the exchange.,

Dividend irate

filed by amendment.
Address—Baltimore and Charles Streets,

York,'

New

.

payment of the cash adjustment to
the holders of the shares of old preferred

will be

■■■■

...

single

A A

Avenue,

Proceeds—For investment.

I

the

a

preferred stock (par $100),

Md.

the

r"

.

Fifth

payment'"
50

of

Sponsor—Corporate Leaders of America,

C-l

proceeds used with other
to redeem at $55

the

and
of

.,

statement

periodic

maximum

a

Offering—By

Erie, Pa.

Any new preferred stock not
exchange will be sold to the

in

public
funds

950

Registration Statement No. 2-5810.

cash

be

of

and

AMERICA,

OF

registration

a

certificates.

share plus accrued dividends all un¬
exchanged shares of old preferred and to

filed

Business—Operates

Y.

.Inc.'

per

,

stock, Series A (no par).

issued

by

until

registration
statement for 56,000 shares of cumulative

Baltimore,

Will

filed

Business—Investment company.

i

•

outstanding.

Offering'—At market.

June 28.

Details—See issue of

payment

I

payment.

bonds

during August the
gage
bonds, 3»/4%

July 30, 1945.

on

INSURANCE

of preferred -are'

count of

CO.

of

names

amendment.

filed

par), Divi¬
will be filed by

preferred

on

amendment.
shares

UNION OIL

the

maximum

a

Address—545

exchanging such stock on a share
basis for new preferred plus a

of

LEADERS

has

*

share

of

28.

Underwriters—Company will offer the
bonds for sale at competitive bidding and

MONDAY,

200,000 shares of common ($5

Bacon, Whipple & Co. and associates.

.

June

Offering—Price to the public will be filed

a

registration statement for 34,550 shares of
cumulative preferred stock ($100 par) and

E. Hut ton & Co., Paul H. Davis & Co. and

Offered July 2 at $50 per share and div.

June

on

CORPORATE

'

Proceeds—Net
of

group •:

&

V

*

'

(no par).

cash

2%% debentures,

1985.

1,

Co.

$100).

cumulative preferred stock (par
Details—See issue of June 28.

11

June

on

statement

registration

a

shares

lege
for

.

Form

Statement No. 2-5808.

INC.,

Form

Offering—Price of bonds will be filed by
Company is offering holders
of outstanding $2.50
preferred the privi¬

registration

a

4%,

A

y.

by amendment.

certificates

amendment.

Proceeds—Net

WEDNESDAY, JULY 11
filed

June 25 filed

on

filed

ments..

Address—20 East Tenth Street,

Series A,

(6-29-45),

for

and 70,292' shares of

stock

Prescott,

be

Registation
S-l

group of under¬
of others to be

registration, statement for, $5,500,*mortgage bonds, 2Ab% Series due
$2.10 preferred

a

.

1975,

be filed

principal underwriter.

is named

•

.

Aug.

a

registration statement for 82,559 shares of
common
stock (par $10).
Of total regis¬
tered 40,000 shares are being sold by com¬
pany and 42,559 shares are being sold by
certain

will

of

000 first

by amendment.

filed by

underwriting group.

head

sale

A

bonds,
.

petitive bidding and names of underwriters

Business—Telephone.

Details—See issue

headed

Peabody & Co.

der,
Co.

headed

share

per

due

accrued

Underwriters—Lee Higginson Corp.,

Offering—Price

heads
of

on

amendment.

share and div.

registration

Underwriters—Eastman,

and

MacDonald

Proceeds—Net

June
20 filed a registration statement for $15,000,000 2%% sinking fund debentures, due
July. 1, 1970,
CORP.

FINANCE

HOUSEHOLD

SQUIBB & SONS on June 5 filed a

of 3 Va %

■: :■ A;

/

Offering—Price to public will be

heads

underwriters.
.Offered July 2, the preferred at $52 per
share and the common at $10 per share.

holders

2V2%

25-year

June

on

statement for $2,refunding mortgage
aa'a'AA

registration

a

000,000

the group of

of $4

filed

INC.,

CLUB,

METROPOLITAN
20

is

group

Details—See issue of June 28.

Underwriters—Lee Higginson Corp.

R.

Underwriting

—•

by Goldman, Sachs & Co., Paul H.
Co. and Stern Brothers & Co.

&

Davis

the

names

(6-27-45).

filed

SATURDAY, JULY 14

HECHT

Underwriters
headed

Details—See issue of June 14.

E

Co.,
Ler-

filed by

amendment.

statement also

tration

Burke &

Co.,

11

28.

June

the

1956.

all

PENNSYLVANIA TELEPHONE CORP. has

&

statement for $45,000,000

stockholders.

of

heads

Inc.,
with

trust

1,

Underwriters—Bonds will be sold at com¬

N.

& Co., Kidder,
Peabody & Co.,
Hall & Co., Inc., Boettcher & Co.,

SOUTHERN BELL TELEPHONE & TELE¬

filed a
registration statement for 30,400 shares of
4>A% cumulative preferred stock (par $50)
and 23,692
shares of common (par $5).
Of shares registered all but 20,000 shares
of preferred are issued
and outstanding
and are being sold for account of certain
Details—See issue

proceeds from

March

due

share

per

collateral

and

to

by

A-2

Co., First Trust Co. of Lincoln,
Neb., Baum, Bernheimer Co., Beecroft, Cole

underwriting group.

COLEMAN CO., INC., on June 20

which

preferred,

the

on

account

chen

Inc.,

Becker & Co.,

G.

Underwriters—A.

of

filed

-A
used

exchanged for

preferred not

balance

and

$105

at

be

amendment,
Registration Statement No. 2-5802.

Stern

are

be
.

redemption

of old

writers

Wright, Snider Co.

Offering—Price to public will be

MOORE DROP

filed

not

are

amendment.

share.

per

as

Bosworth,
Chanute,
Loughridge
&
Kebbon, McCormick & Co., Watling,

&

Details—See issue of

MONDAY, JULY 9
8 filed a registra¬
tion
statement for 40,000 shares of 5%
cumulative preferred stock (par $50)
and
Details—See issue of June

shares

will

will

preferred stock and common stock will be
available for working capital,
A Underwriters—Stone
&
Webster
and

by amendment.

fixed

to be

GRAPH CO.

ELLIOTT CO. on June

86,406 shares of common

35,000

public

proceeds

Brothers

Harris,

statement for 15,000
preferred stock

registration

a

'
at $8 per share.

Offered July 2

for

new

Offering—Offering price will be filed by

Livingstone & Co..
McDowell & Dolphyn, both of

Detroit.

PRODUCTS

GERBER
filed

shares

April 5.

issue of

Details—See

Underwriters—S.

call

shares

exchange and sub¬
be sold to under¬
who will offer them to the public

price

a

the

of

Underwriters.—- Underwriters

29

March

on

registration statement for 107,923
stock, par $1.
All of the

a

such

the

Proceeds—Net

writers

Underwriters—Wertheim & Co. will head

and

to

Price

amendment.

by

filed

SUNDAY, JULY 8

ELECTROMASTER,

ment.

1945,

28.

June

Blodget,

June 18 filed

on

share and

shares of common

issue of

issued pursuant to the
scription offer are to

div.

filed

June 1,

from

value of $60,

par

$100).
Details—See issue of June 21.

CO.

registration statement for 75,000 shares
of 3%%
cumulative preferred stock (par

the

per

a

a

SATURDAY, JULY 7
BRISTOL-MYERS

CORP. on June 9

registration statement for 150,000
shares of 4%
preferred stock (par $100).
Details—See issue of June 14.

filed

has

Details—See

Offering—The company will offer 35,000
shares of the new preferred stock under
an
exchange
and subscription
offer
to
holders of outstanding
Series A $4 pre¬
ferred
stock.
Remaining
15,000
shares

OFFERINGS
BURLINGTON MILLS

cumulative

annum

and

Flotations

Thursday, July 5, 1945

be

filed

by

Underwriters—G.
named

H.

,

,

21.

the

Walker

principal underwriter. '

public

will

...

&

Co.

>

la.

its

POWER CO.

CENTRAL OHIO LIGHT &

lie

filed by amendment.
Details—See issue of Jan.

4, 1945,

•

tive

Bids

MFG.

CO.

registration statement

21.

Details—-See issue of June

Becker & Co., Inc.,

Underwriters—A. G.

Underwriters

ager

statement

filed a registration
17.702 shares first preferred

April" 19

the

stock, 6%
cumulative, (par $25), 262,314 shares class
A common (par $1), 25.0,000 shares class B
common
(par 5 cents) and 260,136 shares
class C common (par 5 cents).
;
for

Underwriters—John

Kauffman Co, is

R.

LOAN

LIBERTY

CORP.

June 4 filed

on

registration statement for 65,000 shares
of cumulative preferred stock, 50-cent con¬
vertible series (par $5).
■:
1
a

underwriters.

per share."
"•>• r
Uodcrwriters~-William

'
;
L.- Ullrich,
St.,
the sale of the entire
' :T > •*'^U Z "

,

;:V,: X*: .;/*>■

,

Chicago,

named

is

*'*■

of

'-:.V

.■

June 12
a registration statement'for"$16,500,-:
20-year 3%; debentures due July; 1,-

Brothers.

and

April
registration statement for 333,333
stock.

Details—See issue of April 26.
Offering—Price to the public is 30

'per share.

a

dommon,(par $1),
v■

l4.

?

'

the public will be
Of the total regis¬
tered, 7,188 shares of preferred and 14,375
shares of common
are
to be offered by
issuer, the* balance by certain stockhold¬
ers.
The offering is to be made after, re¬

^

shares of common

filed

5

June

on

shares of

85,035

Offering—Price to
filed by amendment.

COVENTRY GOLD MINES, LTD. on
21 filed a

BASKET

securities.

of

classification

■

Underwriters—Bateman,

cento

and

:.*•

•

fpany proposes to* market its own-

securities.

Eichler

&

Douglass & Co.

Nelsori

^

MOUNTAIN
STATES POWER CO. on
9 filed a registration statement for
$7,500,000'first mortgage bonds, due July
I,
1975.
The bonds are to be sold at
competitive
bidding, with the successful
bidder naming the interest rate;

•:

CORP. on-June

CLP MACHINE SERVICE

8,000
($50 par) and
stock (10 cents

registration statement for

a

preferred

of

stock

shares'of common

<75,000

of June

issue

Details—See

.** f

"par).

14,

Underwriters—To be filed by

Details—See issue of June 21.
Offering—The preferred
stock will be
f sold
at $50 and the common stock at 10

t

amendment.

'

cents
■'

share.

per

.

,,\

.

Underwriting—None.

-*.'■-/v.

12 filed a;; registration,

TEM on June

V-;'-

,

shares,

500

for

ment

RUBBER WELDING SYS¬

CO-OP

K.

O.

'

value

par

state¬
$1,000

as
"participating
members
shares" and 800 units of $500 each of pre¬

designated

1

edis6n BROTHERS

)June

filed

15

STORES,' INC. on
statement for

debenture certificates. V v X' '"*,
Issue of June 21, ;
Offering—The securities are to be sold
at their par or face value to the owners
and operators of O K Tire Servicing Stores
and to employees, customers and suppliers
of the trust and of the several businesses
being acquired by the trust;

Details—See Issue

of June 21.'

underwriting

Underwriters—The
Walker

group

Brothers, G. H.
Co. .and Bacon, Whipple & Co.

headed

Is

by ..Lehman

&

;

Details—See

,

by amendment.

;

7%

ferred

registration

a

150,000 shares of cumulative preferred stock
i (par $100),
The dividend rate will be.filed

Underwriting—None named.
29
for 60,000
($100 parji
shares of common stock (no
;
:■ ■ '.V

•filed g. registration statement
rshares. of preferred stock, 4%
and

62,773

'

.pari.

Details—See-issue

v

of June

7.

Business-r-Dairy industry.

is offering 40,-,
.000
shares
of
the
new
preferred on 6
'share for share basis to the holders of s
like-amount of outstanding -convertible pre¬
ferred stock and. is offering 42,773 shares
Offering—The

•*.'

company

at

;of new common to holders of common

the rate of one share for each ten shares
•'held.* * The subscription price will be filed
iby .amendment.
The remaining 20,000

;6hares of new preferred
purchased

shares

changed

writers* will

offered to

be

and any unex¬
the under¬

by

the public at 8

iprice. to. be. filed by amendment.
The re¬
maining 20,000 shares of common are tc

'

,be issued by the company solely
acquisition of additional property.

for, the

Underwriters—To be supplied by

amend-

•'ment.

v

-

tLe bid, stating that
stifled."

filed

8

000

:

and

shares

of

May

statement for 1,500,-

common

stock

($1 par)

and

share purchase warrants
of common reserved

common

200,000; shares

'for warrants.

Details—See issue of May 17,
Business—Exploration and development

t

of oil

f

wells.

"

■

Offering—Price to the public Is 60 cents

share.
The underwriter will receive
> purchase
wfirafnts for the purchase of
,2,000 shares of common for each 15.00r
per

| shares of common stock sold In' the offer¬
I

filed

28

Offering—Company
uiilts

to

for

unit

each

share

of

statement for 35,000 shares
convertible preferred
stock
(par

registration
4%.

two

offer

1,993,261

stock
warrant, to purchase an additional
at
$18
per. share. - Rights
expire
of one share of common

will consist
a

will

on the basis of one
shares held.
Thq unit

shareholders

31,

1947.
company

under

an

under¬

writing agreement with Atlas Corp.,, was
guaranteed that stockholders would take

$25,000,000

up

event

of

the

units

subscriptions, fell

the

and

in

under

the
that-

to take up sufficient
units
to
bring the total to $25,000,000,
with the right to take in excess of $25,000,000 if it desired.
This agreement with
Atlas Corp. was cancelled June 28.
amquntvAtlas

was

jNew Underwriting Agreement—Company
June 28. announced a new underwriting

on

agreement with a syndicate headed by
Kuhn, Loeh &s Co.; Blyth & Co., Inc.,
Lazard Freres and Ladenburg,. Thalmann
which will receive a cash considera¬
It is expected now that
1,993,261
share and one warrant) will
be offered in near future to stockholders
for subscription at about $21.50 a shai'e.
Offer is expected to be open 21 days.
(one

standing 5% cumulative preferred
held by others than Cities Service
&

gate principal amount of Its indebtedness
to $3,750,000 by redeeming the outstanding
bonds and issuing $3,750,000 of new bonds.
The bonds will be sold at competitive bid¬

V;V'-*:;^^;'^'.J:*'-> ;;

Details—See Issue of June

Offering—Preferred^
offered

PANHANDLE EASTERN PIPE LINE

14.

shares

are

being

by the company, to the holders




of

on

June

13

for $150,000

■)>' A'to

CO.

filed a registration statement
shares of cumulative preferred

&'■ K '•

3*.-0 V'-.h

'*

SCHUSTER

CO.,

&

floor trading by
members on both the Stock and
Curb Exchanges.
-ii.
would

prohibit

on

$7,500,000

for

President Roosevelt on

signed

first mortgage

group.

„■

SEEGER-SUNBEAM
a.

of
are

common

stock

for 500,000

sold, by

certain

Underwriters—F.

The
and are

$5).

(par

issued and outstanding

"Details—See issue

,

15

June

on

registration statement

shares

being

CORP.

stockholders.

of June 21.-

<

:

COMPANY'S

Underwriters—To be filed by amendment.

12

12,500

filed

a

shares

registration

preferred

CO. on

statement

stock,

con¬

no
par,
non-participating with
cumulative dividend rights of $1 per share

vertible,

per annum, and

DEBENTURES,

192* 1

DATED APRIL L

Washington; D. O.,
Georgia Southern and Florida

July 2,

1943.

Railway .Com¬

of the "$233,-...
of April"

pany hereby offers to redeem all
884.33 principal amount of debentures

1924, outstanding in the hands of the public,
100% of the principal amount thereof, to¬
gether with accrued interest thereon to October

1,

at

1945.

1,

Holders

,

of

the

Debentures

who wish to ac¬

must present

cept this
offer
redemption to ■

the

for.

same

"

MERCANTILE TRUST COMPANY OF
BALTIMORE, BALTIMORE, MARYLAND

all

must be accompanied? by

debentures

bill increasing the

a

By John B. Hyde,

April 3,

000

to

public
debt is, however, not directly in¬
creased by the bill, Congress in¬
creases
it by appropriations and
announced.

House

The

60,000 shares of common,

Vice President.

LIQUIDATION NOTICE

Fed¬

$2(30,000,000,$300,000,000,000 the White

The Farmers

<$z Merchants

National Bank of

of

Eureka,
located at Eureka in the State
Nevada, is closing its affairs.
All note holders
and
other
creditors
of the association are
therefore hereby notified to present the notes
and other claims for payment.
,

Dated:

June

16,

'..V..!..,

1945,

C. L. TOBIN,

Cashier,

increasing tax rates.
Advices

from

Associated

the

Press Washington Bureau

reports:

The administration believes

ELECTRIC

SOUTHWESTERN INVESTMENT

I

FLORIDA RAILWAY

eral debt limit from

Eberstadt & Co.

amendment.

March

OF »T

GEORGIA SOUTHERN AND FLORIDA
RAILWAY COMPANY
; ,

.

SERVICE
CO. April 18 filed a registration statement
for $2,375,000 first mortgage bonds, 3%%
series due 1975; 8,500 shares 4%% cumu¬
lative preferred stock (par $100) and 128;935 shares of common (par $1).
Details—See issue of April 26.
Offering — Holders of the outstanding
common
stock
of
Southwestern
Public
Service Co, will be given the right to sub¬
scribe to the 128,935 shares of common at
the rate of one share of common of South¬
western
Electric for each five shares of
common
of; Southwestern Public Service.
The
subscription price will be filed by
amendment.
The public offering price of
any
unsubscribed
common
and of the
bonds and preferred stock will be filed by
SOUTHWESTERN

TO HOLDERS

NOTICE

GEORGIA SOUTHERN AND

6f Debt Limit Rise

30-year -bonds,
the coupon rate to be
specified by successful bidder.
Underwriters-r-Wisconsin Co. heads the
underwriting

Share Company

Preferred Stock Dividend*

and

.4J/4 %. cumulative preferred stock
The
total includes 13,679
and 4,825
shares to be sold by certain stockholders.
Details—See issue of June 14.
Invites Bids—Company is inviting bids
10

.

■>, A*

.

FINANCIAL NOTICE

The

par);

July

•

coupons thereto appertaining maturing on
after October 1,
1945.
■■/>
This offer will expire on October 1.. 1945.

June

shares to be sold by the company

on

>

regular quarterly dividends of $l.5D per.
the $6 Preferred Stock and' $1,25 per
the $5 Preferred Stock of, the .Com- .
pany have been declared for payment. August*
:i.
1945, to the: stockholders of record at the
.close of business July 6, 1945.
.
:
H. H. DINKINS, JR., Secretary, " *;

shares of

($100

*

The

.VX'

INC.,

registration statement for 18,504

a

Y,

New York 5, N,

share on

floor

January, when its Trading and'
Exchange Division recommended
the
adoption of a rule which

■

■share, on

5%

question of the abolition of
trading has been under con¬
sideration by the SEC since last

"-*

1

*

..

Broadway,

$6 and $5

The

Wright,

*

Electric Bond and

Mr.

by

headed

September I, 1945, to holders of
Capital Stock registered bn the
Company at close of business

.,'*;.

whether
be taken

Treanor.

Walker & Co. and
Snider Co. as exchange
agents, to secure and procure consents of
preferred shareholders to the conversion.
The company also proposes to refund the
$4,806,000
first: mortgage
bonds, 4%%
series due 1947 and to reduce the aggre¬

ED.

Division,

ing

de¬

■

whether the rules
should

1945,

day

will be mailed to holders
Stock who have filed suit¬
at this office.
,j >
WILSON, Assistant Treasurer,

120

along the lines recommended last
winter by the Commission's Trad¬

shares
Power

Estabrook & Co., G. H.

11 filed

action

further

Light Co.
Underwriters—The company has retained

Prescott,

by

C.

D.

eliminated the abuses or

Offering—The company is offering 13,056
its Class A 5% preferred shares
in conversion share for share of the out¬

this

able orders therefor

SEC could

tried out for a period
then determine

shares of

for

$100).

& POWER CO. on
registration statement for

of

has

Common Capital

iOf

director of
Exchange Divi¬

and

Trading

the

27, 1945.
Dividend checks

s

After the new rules have been

Class A 5% cumulative
preferred stock, par $100.
•
Details—See issue of March 8.

shares

14.

tion.

June 9 filed

on

issue of June

Details—See

a

shares

13,056

filed

$2.50).

units
HAMILTON WATCH CO

on

& Co,,

ing at a price of 45 cents per share.
Underwriter—Tellier- & Co.

a

CORP.

AIRWAYS

registration statement for
of common stock
(par

a

shares

3,986,522

Dec.

on

competition had "been

'

AMERICAN

PAN

June

and

.'

VENTURES, LTD.,

OIL

,8 filed, a, registration
1200,000

its

of

books
July

recommended

as

pany, payable
said Common

sion.

JOSEPH LIGHT

ST.
Feb.

ding.

ELECTRIC CO. on May
4 filed a registration statement for 700,000
shares of common stock (par $25)..
The'
shares are owned
by the North American
Co. which is offering' them,
Details—See issue ol May 10.
Awarded May 22 to Blyth & Co., Inc. at,
$36.76 7/10 per share.
The SEC on May 23 refused to approve
PACIFIC GAS &

Originally,
GASPE

entirely

Y., June 28,

Directors

of

Board

clared
a
dividend
of One Dollar and Fifty
Cents ($1.50) per share, being Dividend No. 130
'on the Common Capital Stock of this Com¬

James E. Treanor, Jr.,

underwriter

TOFEKA AND
RAILWAY COMPANY

York, N.

New

The

xnailedj

K, A, BURGER,

FE

SANTA

rules

It is

Transfer!

Checks will be

ATCHISON,

THE

conferences

change
Commission new
governing floor trading."

Bennett & Co., InC;,* Dallas, Texas.

FAIRMONT CREAMERY CO. on May

f

of the

record at

15, 1945, to Stockholders of
of business July 26, 1945.

close

its officers and SEC of¬

ficials, the New York Stock Ex¬
change has drawn up and sub¬
mitted to the Securities and Ex¬

business.

Principal

—

June

Tradmg Rules
result

a

between

registered have heretofore been
issued to Bennett & Co., Inc., in exchange
Ifor various obligations of the registrant.

Co.

June

11 filed

shares,

stock being

The cont-

Uhares

As

r

Underwriters—None. named.

;

Floor

I

26, 1945 a quarterly dividend of!
seventy-five cents per share was declared on the
Common
Stock
of this Company, payable
On

*".'■

May 31 filed a

COMPANY!

CAN

COMMON STOCK

the

reported that the new rules
include provisions for closer re¬
strictions on floor trading than
registered will be issued to stockholders of
Federal Steel Products Corp. in exchange
have heretofore existed* and were
for all of Federal's stock.
Bennett & Co.,
made with a view to having the
Inc., is the sole underwriter as to an ad¬
SEC holdin abeyance its deter¬
ditional 1*00,000" shares of common regis¬
tered.
The balance' of 530,823 shares of
mination to abolish floor trading

Underwriters

AMERICAN!

books will remain open.

in return for a like
number of shares loaned to the registrant
in connection with the acquisition of 54%
of the outstanding stock of Seatex Oil Co.,
Inc.
In addition,
150,000 of the shares

,*;v*;**•

June 19, 1945

August

Offerings—Of the shares registered Ben¬
Inc., parent of Red Bank, will

principal' underwriter,
filed by amend¬

registration .statement: for 42,548 shares of
$1 cumulative Series A preferred (par $15)

Underwriters—Wertheim & Co. and Leh¬
man

gas

and Treasurer

Milwaukee, Wis.

or

substantially correct the deficiencies
in the notice of the proceeding ex¬
cept those relating to the warrants.

receive 209,970 shares

MARKET

on

cited

nett & Co.,

-

;

and

with names of others to be

Details—See issue of*June

21.

on

Vice President

at $5 per

of common stock,

pany

issue of June 7.

ment.''*,

;

Details—See issue of June

common

Business—Oil

.

CONTINENTAL BAKING CO. on

OIL CO.

Details—See

Inc.,

& Co.,

Miriton

Underwriters—Sills,

has
re¬
dealer-man¬

statement for 990,793
stock (par $1).

registration

Offering—Price to the public is $10 per
Share, -v',v

share

one

before Dec. 31, 1948.
Em¬
ployees will receive such warrants for eacb
five shares of common stock purchased.
Underwriters — Floyd
D.
Cerf
Co.
is
named principal underwriter.
Stop Order Action—The SEC on June 29
dismissed the stop order proceedings com¬
menced April 10, 1945.
In its opinion the
Commission said it is satisfied that the
amendments subsequently filed by the com¬

CLUB

BANK

RED
-

.

ALVIN R. CORD

will receive warrants to subscribe

•

14.

issue, of June

Details—See

not

Shares

share,

OF
WASHINGTON,
registration state¬
ment for $492,300 extension first.mortgage
3%
bonds dated Jan. 1, 1945, to mature
Jan. 1, 1965, to replace a like amount of
bonds which matured Jan. 1, 1945.
The
University Club of the City of Washington
(guarantor) joined in the application.
Details—See issue of June 7.
:*'
Underwriters—None named.
Withdrawal request filed June 23.

principal underwriter.

■

to

May 25 filed a

on

mon

employees at $4.25 per
subscribed for by em¬

to

offered

be

ployees,

,

C.

(25c) per share on the Com¬
Capital Stock of the
Company, payable July 31,
1945, to stockholders of rec¬
ord July 16, 1945.

being

offering.
For every ten shares of common
stock bought, purchasers, other than em¬

acceptances of

to aid it in obtaining
exchange offer.

RACQUET

D.

26.

Details—See issue of April

named

to

share.

company

tained Alex. Brown & Sons as

CORP,

LAISTER-KAUFFMAN AIRCRAFT
on

The

—

shares

133,000

ployees will be sold to public through un¬
derwriters along with the rest of the public

exchanged.

stock

ferred

of "underwriters.

list

the

heads

the

Of

share.

regular quarterly-

a

dividend of twenty-five cents

of March 29.

offered for account of company, 20,000 are

filed
registration statement for 63,784 shares
preferred stock (par $100).
Details—See issue of April 26. /
Offering—The company will offer the
63,784 shares
of preferred stock In ex¬
change for the 29,182 shares of 7% and
34,602 shares of 6% preferred stock now
outstanding on a share* for share basis,
with a dividend adjustment in each case
and $5 in cash for each share of 7% pre¬

stockholders.

clared

Offering—The initial offering price is $5
per

POTOMAC EDISON CO. on April 19

on June 15 filed
for 11,105 shares

Company, Inc., today de¬

stock

Details—See issue

a

stock ($100 par).
The shares
and are being sold by certain

issued

are

CONTAINER ENGINEERING CO. oti June
15 filed a registration statement for 25,000
shares common stock (par $10). ,..
Details—See issue of June 21.
,
Offering—Price to the public is given as

.

of the
rate to be specified by

STOCK DIVIDEND

The Board of Directors of
Froedtert Grain and Malting

Class A common stock,
par
a share, with Class A com¬
purchase warrants. Of the total
530,500 are Issued and outstanding and
are being sold by certain stockholders.

bonds, the coupon
the successful bidder.

of preferred

March

on

cent

value one

mon

to noon July 9 for the purchase

up

CORP.

statement for 663,-

registration

a

COMMON

shares

500

amendment.
Invited—Company will receive bids

writers will be filed by

of 4V2%

KROEIILER
a

&

•

;

for

filed

World"

in the

named.

CAMERA

UNIVERSAL

19

offered
sale under the Commission's competi¬
bidding rule and the names of under¬

COMPANY, INC.
''Largest Commercial Maltsters

$12.50 per share.

be

by
Underwriters—The bonds will be

Dallas, Texas.

CREDIT CO, on June 7
registration statement for 250,000
preferred stock ($100 par). Divi¬
rate will.be filed by amendment.

1965.

will

public

the

to
amendment.

Underwriters—None

14.

•

Details—See issue of June 14. ..„;*.
t
Offering—Company is-offering the hold¬
ers of the 121,938 shares of AV*fo
cumulaitive convertible preferred stock to exchange
•their stock, share for share, for the new
'preferred.
The underwriters have agreed
to purchase any of the 250,000 shares of
preferred not issued in exchange for out¬
standing preferred.
Company will call any
of
the
old preferred
at $105 per share
plus accrued dividends..
■■■■;.
■'
Underwriters—Kidder,
Peabody & Co
and First Boston Corp. are named prin¬

000

at

and MALTING

but unissued shares of common

authorized

Interest rate will be filed by

Offering—Price

rata to the former holders of the 7%
preferred shares which shares have been
called for redemption on May 1, 1945. Any
balance will
be offered to the public by
the underwriter at $102.
Underwriters—Dallas
Rupe
& Son of

)

filed

a

first

Details—See issue of June

pro

a

Issue.

ELECTRIC CO.
registration statement
mortgage bonds, due

GENERAL

amendment.

filed

GRAIN

their stock on a share for share
basis for the $1 preferred stock.
Any of
the $1 preferred not issued in exchange
will be offered to the public at $20 per
share.
Corporation also is offering 11,822
change

filed

7

$34,000,000

Juiy 1, 1975.

share on the basis of one share
preferred for each share of common.
Any shares not subscribed will be offered

COMMERCIAL

will manage

statement for 7,000 shares of
preferred
stock
(par

at $100 per

shares of

Louis,

June

for

of

/

.$35

a

Offering—The new preferred will be of¬
fered initially to the common stockholders

Co., Inc.
.head the underwriting group, with, names
of others to be filed by amendment.

cipal

filed

23

Details—See Issue of April 26,

ail

dend

April

on

stock

and Rey¬

/

of its $4.25 outstanding preferred an
iopportunity to exchange such stock for
the new preferred on a share for share
basis plus a cash adjustment.
Cash pro¬
ceeds to be received from the sale of un¬
exchanged shares to underwriters, together
with treasury funds of the company to the
extent required, will be applied to redeem
iat $101 per share plus accrued dividends

Jfiled*

CO.

&

FROEDTERT

Offering—Holders of the $1.20 preferred
have been given the option to ex¬

Beane.

cumulative

5V2%

ers

i

&

$100).

a

unexchanged shares.
Underwriters—Dillon, Read

Fenner

PORTLAND

HARRIS

registration

-

filed

7

Co.

on

PALMOLIVE - PEET CO. on
registration statement for
125,000 shares of $3.50 preferred stock
(no par);
"
-v.':'-1./';
' ;;
Details—See issue of June 14.
Offering—Company expects to offer hold¬
COLGATE

&

nolds & Co.
A.

is

Peabody & Co., Glore,
and Merrill Lynch, Pierce,

Forgan

Harris, Ha)l &

Inc.,

Co.,

&

Details—See issue of March 15.

by Kidder,

Corp.,

Securities

Inc., Morgan Stanley & Co.

Co.,

proposals
it In obtaining acceptances of the exchange
offer of new preferred stock for old pre¬
ferred and for the purchase from it oi
such of the 11,972" shares as are >not ex¬
changed pursuant to the exchange offer,

:June

Read

Dillen,

invite
for services to be rendered to
to

proposes

Offering—Company

Underwriters—The underwriting group
headed

Union

—

DIVIDEND NOTICES

reserved

ments of the

Details—See issue of June 21.

underwriters.

Underwriters

Of the latter 20,000 shares is to
to meet
conversion require¬
preferred.

par.

be

be filed

for each 11 common shares
at a price to be filed by amendment.
The
unsubscribed shares will be purchased, by
the

no

dividend rate will

(par $100).
The
by amendment.

stock

shares at the rate of one pre¬

common

ferred, share

filed a registration statement
for 11,972 shares of preferred stock, cumu¬
lative ($100 par).
The dividend rate will
28

Dec.

©a

111J

FINANCIAL CHRONICLE

THE COMMERCIAL" &

Number 4400

162

Volume

the

Brooklyn Tr. Cuts Discount
Rate

on

Personal Loans

■'

The Brooklyn Trust Company
limit
will be
announced on June 28 that, the
reached by about June 30, 1946.
rate of discount on, personal in¬
The
present debt, in terms of
"maturity value" (which is the stallment, loans not secured, by
collateral would be reduced to
basis on which the statutory limit

$300,000,000,000

is

is about $243,000,000,000.
the old limit of $260,-

set)

This

means

000,000,000

would

have

been

3
1.

5/6% per annum, effective July
The former rate of discount

had been 5%

established

since the Company

its personal loan de¬

the
The
Seventh War Loan drive (May 14- partment several years ago.
new rate is
equivalent to 7.36%
June 30), if that drive proceeds
simple interest on unpaid balances
anything like the $21,000,000,000
in the case of a loan maturing in
sales of the Sixth, War Loan.
twelve
equal monthly
install¬
The present debt in terms of
ments.
On
installment
loans
current redemption value, is $235,secured by collateral the new rate
000,000,000. This is the way the
of discount
will be 3 1/3% per
way the debt is usually given.
Information in regard- to the annum, equivalent on. the same
reached

some

Senate approval
found
page

in

1408.

time

during

of- the bill may be
March 28,

"Chronicle"

basis

simple
ances.

to

approximately

interest

on

unpaid

6.37%
baL

'

THE COMMERCIAL & FINANCIAL CHRONICLE

112

Thursday, July 5,1945

N. Eng.

Trading Markets in

foreign securities

Bendix Home

■'■Wilcox & Gay

Appliances

Clyde Porcelain Steel
Baltimore Porcelain Steel

Teletype
NY

Bendix

Globe Aircraft

Du Mont Laboratories

'

Majestic Radio
Du Mont Laboratories

Helicopter

P.O. Inc.

fABI MARKS 4

Lear'

FOREIGN SECURITIES

.

•

50 Broad Street

!:

'

SPECIALISTS

:

Telephone

Inc.'./;."

Majestic Radio &

television

Norfolk &; Southern Common

M. S. WlEN & Co.

Mississippi Central Common

Members N.
40

Members

Increasing World Role For

45

New

INCORPORATED-

York

NASSAU

telephone

Int'l Chamber of Commerce

*

s

REctor.2-3600

Security

Dealers

Association

A High

Enterprise 6015

new York

:

Worcester Trans. Assoc.

1-576

227,600.

of
'

of men attempting to im¬
plement the Atlantic Charter and
the purposes of Bretton Woods in

Interna-

groups

tional Business

Mac h i

;

t

such

President

n e s

the international field."

Corp., at the
LJnion Club,
JNew
York
Aldrich's

recent election.

Presi¬

the

to

of

dency

the

International

Chamber

of

Commerce/

Approximate¬
250 repre¬

banking, busi¬
W. W. Aldrich
education, industry,
the military and the clergy at.

'"tended.
.

In

a

short address, Mr, Aldrich

"there!

every single
been put out

through

runs

that has

document

by our Government
by the Government of Great
Britain in connection with the war
and

this

thread.

started

It

with

the

Atlantic Charter; it is expressed
in the Lend-Lease agreements; in

the purposes of the Bretton Woods
agreement, and in the Dumbarton
Oaks agreement, that the purpose
of the

war

was, among

others, the

■

reestablishment

international

in

trade of private enterprise and the
elimination of trade barriers, It is

perfectly

obvious that govern¬
ments
cannot
accomplish these
purposes.
Everything that has
been set up and/everything that is
.done has got to be implemented
by private endeavor, by private
enterprise, unless we are going to
follow the lead of Russia and have
all

of

these

things done by

governments.
"There is a very

the

interesting and

.probably rather tragic line of
cleavage between the great Allies

-

•/

never

existed in the

hands of business before/'

■

In

introducing Mr. Aldrich, Mr.
Watson stated: "The common un¬

are

International

of

World

of the New
Organization as

Security

saying

that

consultation

Council

the

suitable

make

"may

arrangements for

with

non-govern¬

years

nations,
we

yet

during

these

have been engaged in

major wars, an average
in 24 years.
.

seven

one

"Now

we

are,entering

a

of

new

definite alliances with
international cooperation. We have
era

with

which are faith that it will work out in prac¬
concerned with, matters within its tice, because nearly all the people
of the world want it to be a strong
competence."
"This is the first time in the instrument for maintaining peace.
history of diplomacy," he con¬ However, we must realize that
tinued, "when governments have faith must be made real in action.
organizations

invited and made official in their

We

council's

peace

vate

individual citizen.

representatives of pri¬
bodies, and it is precisely

here, that the International Cham¬

must

act

on

the

truth

that

is the responsibility of every
Let

us

there¬

along the lines of unstable cur¬
rencies, trade barriers; tariffs/arid
that

rest

did

we

not

Dr.

problems."
predicted

Lewis

ment

business and govern¬
This international Board

of

herent in the Russian system.
I
.mention this to indicate the ter¬

Pfd.

vate

business

that

organization

participate in
by nominating
the representatives of business in
each country which will be named
can

Van Porn Iron Works

Radiator, Pfd.
Central of Georgia

Macon Northern 5's

Specializing in Unlisted Securities

•

Net

Value___

Cash

Bell

Teletype NY 1-886




.

148 State St., Boston 9, Mass#
Tel. CAP. 0425
.v.

Y.

:

Teletype BS 259

;

Telephone HAnover 2-7914

INDEX
Page
Bank

and

Insurance Stocks,. ...;80

Broker-Dealer Personnel Items,,.//,;
Business Man's. Bookshelf..//,,.;.,,

97

76

Calendar of New Security Flotations 110
Canadian Securities
Dealer

-

Broker

mendations

.,

v»,.........83

investment

and

Recom¬

Literature.......

Municipal News and Notes,.

...

74
103

84
,..,.

,;»/./;

-75'■
83

82
70

Securities,..,

Railroad Securities ..,,.,,/.

78
72

Securities Salesman's Corner,....;,.

BANK

—

i

INSURANCE

Tomorrow's

PUBLIC UTILITY

—

INDUSTRIAL

—

.REALESTATE

...

70

Pennsylvania Securities Section
on pages

LUMBER & TIMBER

96

Markets—Walter Whyte

.•Says

76 and 77.

BONDS, PREFERRED AND COMMON STOCKS

WANTED
BOUGHT

—

SOLD

—

QUOTED

Blocks

'

Equity—^

_$48.00 + per share
$23.00 +per share

Earnings —1.—2.05
i——$ 2.00

Dividend

Report

per share

REISER, MITCHELL & REUZEL, INC.
208

per share

upon

request

HUGHES & TREAT
40 Wall
Tel.

BO

St., New York 5, N. Y.

9-4613

Tele. NY 1-1448

So. La Salle St.,

of Securities

Chicago 4

RANdolph 3736
WESTERN UNION

TELEPRINTER

New York 5

Telephone COrtlandt 7-0744

Capital Slock -

Working Capital__$2,225,000

Book

w./t/101m & col
Broadway

Pollak* Manufacturing

Real Estate Securities.,.,,........

MARKET TO YIELD 8 %

120

v

Tele. BOston 23

J

No Bank Loan No Funded Debt No Pfd.
,

U. S.

Established In 1922
Tel. HANcock 8715

Public Utility

Common Stock

Pressurelube, Inc.
III. Power Div. Arrears

STREET, BOSTON 10

Our Reporter on Governments....,;

strumentality through which pri¬

Eastern States,

,,

24 FEDERAL

"

ber of Commerce will be the in¬

by

Frederick C. Adams & Co.
•

Our Reporter's Report,......,.,

and
I believe

everything that is in¬

faced

New Eng. Mark#)

a

.■•/■//..■/. /://. Specialists in
•'
New England Unlisted Securities /'

NSTA Notes.

business

counter to

be

TEXTILE SECURITIES
Securities with

Mutual Funds

of Trade which will meet contin¬

also. that, the Interna tional Cham¬

to

Investment Trust Issues

fore

and

labor

labor and government.

have

{

Public Utility Stocks and Bonds/

"we
are going to face the very great
problem
of
wildcat
financial

.

representatives

that

■

Industrial Issues

that

practice tolerance, develop schemes all over the world which
understanding, maxntain our materialize always after a war be¬
consultative body and where strength and live cooperatively in cause of the spirit of adventure
educational" organizations
and order that this new era shall bring and the amount of money which
other organizations, of that char¬ security, happiness and a fuller men have," /
Dr. James T. Shotwell, director
acter can participate in the dis¬ material and spiritual life to us.
cussions and the making of policy
"The organization of which Mr. of the Economic Section of the
Aldrich is the head is going to be Carnegie Endowment for Inter¬
by the governments.
"I think it might be described a strong force in backing up the national Peace, declared that the
in effect as a creation or opening work of the San Francisco Con¬ International Chamber of Com¬
the doors, to the possibility of the ference. He is going to be a strong merce crossed more frontiers than
creation of an organization for force in backing up the work of international frontiers; that in the
business; commerce and industry the San Francisco Conference. He 1920s it lined up with the Car¬
similar to the International Labor is going to be called upon to par¬ negie Endowment for International
Office which was set up at Ver¬ ticipate in
with
the
academic
the most important Peace and
sailles as part of the League of events which will take place in world which was its background.
Rev. Robert I.
our international affairs
because
Nations,/'
Gannon, S.J.,
:/!/
'.'That organization had in it in he has the organization of busi¬ President of Fordham University,
each country representatives of ness mem financial people,; econ¬ pronounced the benediction,

lishment of private enterprise, run

.world

specialize in all

Insurance and Bank Stocks

a

nation of trade

the
the

BS 328

ber of Commerce can come in as

about world trade and the elimi¬

rifically complex nature of
problems in Europe and in

solve

ternational Chamber of Commerce
is the one organization that can
solve these

Teletype

Hsnoter 2-7913

The In-*

uously if the plans are carried out
in future, will also, I believe, have

barriers, reestab-

We

which

"Another great situation that is
about to face us is the matter of
the various problems in economics

after the last World War.

1014.;

re¬

do so much to -bring up bitterness
between nations. /

the

-

New fork

tion to make successful in

rumors

yearly

BOSTON 9, MASS.

Boston,

tiring President of Lafayette Col¬
lege, stressed the need for educa¬

elimination of these

.

RALPH F. CARR & CO.

Com¬

Lewis,

common

Dividend 800

Hubbard 6442

Dr. William Mather

par

Current, mkt. 10

represented in the

Chamber

no

only outstanding security.

merce."

position of importance the like

other

Charter

that point because most of the
aspirations of the democratic pow¬
ers is expressed in their statement
on

;•

the

of

mental

■;

that

said

/<,-/'

quoted Article 73 of Chapter

He
11

of

ness,

•

a

'

of

fields

the

Dumbarton

he stated..

ly

sentatives

Council set up

Social

national Chamber of Commerce to

tions which

opera^
Oaks, the organi¬
tion the international organization
zation "which; Includes! a body derstandings developed at the San now set lip, and added: "Already
which I think might be thought Francisco Conference mark the we are beginning to hear very
of, at least, as an International opening of a new era in interna¬ nationalistic ideas propounded. So
Board of Trade.
It is in that tional relations for the United many statements are
flying about
Board
that
the
International States. Throughout the 169 years I hope that one of the great ad¬
Chamber of Commerce may have of Our
independence we have un¬ vances under Mr. Aldrich's lead¬
an opportunity, in my opinion, to
successfully sought peace in isola¬ ership in the International Cham¬
do a very great public service," tion from definite alliances With ber of Commerce is to be the
at

City, to mark
Mr/

and

way

of which has

Mr. Aldrich referred to the Eco¬

nomic

it

that that can be so.
immediately raises the - Inter¬
a

Yield Equity

5

bell teletype

philadelphia telephone

';,/,

,

YORK

NEW

STREET,

Winthrop W. Aldrich, Its New President, Says That UnderPrivate Enter¬ by that country to this permanent omists, scientists, and all other
prise Governments Alone Cannot Reestablish Freedom of International international organization which groups outside - of the political
will study continuously the prob¬ group.
His task as leader of this
Trade.
Lauds Provision in Economic and Social Council Which Calls
lems of trade} tariffs, trade re¬ organization is to develop policies
for Consultation With Non-Governmental Organizations.
strictions, and trade barriers of and plans to present to the po¬
litical
bodies not only
Winthrop W. Aldrich, Chairman of the Chase National Bank, was all kinds; ■■■■/,'■>'.X'-..V':'
of the
"If the situation eventuates in United States but of the 41 na¬
the guest of honor on June 26 at a luncheon given by Thomas J. Watson,

HA. 2-8780

1-1397

Kobbe, Gearhart & Company
-

Sees

Security Dealers Ass'a

Teletype N." Y.

.

2.0050

Y.

Exchange PI., N. Y. 5

HAnover

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

Drop Forging

\

New York 4# N.Y»

•

Moore

'./

,

1.971

•

;'

Corp/

Fairchild Engine & Air Pfd.

Amalgamated Sugar

IronriteIroner

MARKETS

Sheraton

.'/

:•■

Utah Idaho Sugar

'

Pub. Svc. Plain Pfds,
Taca Airways

.lS.

"WUX"

BELL

SYSTEM TELETYPE

/

CG-989

Hill, Thompson & Co., Inc.
Markets and, Situations for Dealers

120

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660