Full text of Commercial and Financial Chronicle : June 10, 1943, Vol. 157, No. 4184, Section 1

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MX*

JUN 12 1943
Final

Edition

ESTABLISHED OVER 100

In

YEARS

2 Sections-Section

1

Land.

ommetciaL an

Reg. U.

Volume

New

Number 4184

157

S.

Office

Pat.

Price 60 Cents

York, N. Y., Thursday, June 10, 1943

Copy

a

Post-War Aviation
By P. G. JOHNSON

Transition For Post-War

President, Boeing Aircraft Co.
The aircraft

Geo. T.

the

in

responsibility

large

a

prosecution of the war, will have
a

new

the

kind of

over.

of

built

huge
the

war

come

made

Geo.

that

clear

a

peacetime

conference

press

between

all-out

and

advan¬

peace

the

war¬

war

all-o

-

tion to

tage of the in¬

dustry's

1

v a

the

fullest pos¬
sible

to

war

a

peace

a

economy

u

t

produc¬
provide

quickest

have

who

agreed

that

and

machines

plants,

war

war

"Chronicle"

The

:

age"

"air

will

have

not inherited.

be

to

It will not

built,
by

come

the mystic dawning of a new era.
but only by a concerted program

of development of commercial and

civilian

aviation, which

number

a

of

perfection of
and

facilities

(Continued

take

on page

that

re-con¬

version period
are

will

2178)

the

to

the

by

aircraft designs

new

airways

may

and

years,

now

Geo. T.

necessary

the

on

part of
industry

,

Christopher

both
and

"Industry

Special
interest

material

and

reference

with

items
to

be prepared to move

2166.

page

quickly into
manufacturing when

peace-time

of

dealer

activities in the above State starts
on

plan its post¬
lines so it will

must

production

war

Corporate-Municipals

1

it

receives

the

"Packard's post-war re-conver¬

AND CONSTRUCTION

said.
five-man

post-war

plan¬

committee,
consisting
of
car
production veterans,
meets after hours and Saturday
ning

motor

•

light.
The
Government
must
provide
the
necessary legal steps to demobil¬
ize its war production functions
as soon as peace comes."

afternoons.

They have discovered

problems

confronting

future re-conversion.

These two

major

problems can be broadly classi¬
fied as 'paper work' and ; 'actual
work.'

ments

conclusions set
in his article.

Some of these let¬

Christopher disclosed that
he has been discussing the need
for legal procedures with various
representatives of the Govern-

given herewith:

are

President,

Bank

Farmers

State

of

of

the

"

San Francisco

INVESTMENT

64 Wall

reconvert

our. war

plants. These

plants were laid out, and highly-

specialized

installed,

equipment

(Continued

on page

2169)

debt

Cotton

Buffalo

hundred

Page

bill¬

Bank

Board

Chicago

And

of

Cotton

Orleans

other

w/lONG and-GOMPANY

Canadian

Investment

the subject

NEW

634 SO. SPRING ST.

LOS ANGELES

Dallas

Trading Markets, always

that

MEXICO,

GENEVA,

D.

P.,

MEXICO,

SWITZERLAND




Reporter's Report

Reporter On Governments.... .2180

Personnel

Personally, I

Railroad

our

Items

2163

....................2165

Securities

Real Estate

must

of

having

Says

a

.,,

u..,>

.....

.2165

Securities.............. .2164

...

.

Markets—Walter
..

i.

—

.

Whyte
. .2164

.

permanent na¬
debt

some

of

size.

tional

In

William K. Paton

1 a c e of, or
perhaps in addition to, their usual
savings accounts, our citizens genp

CHASE

THE

BANK

NATIONAL

Bond Brokerage
Broaden your customer

Service
and Dealers

service with Chase

correspondent

Hardy & Co.
Members New

facilities

York Stock Exchange
York Curb Exchange

New

30 Broad

New York

St.""

Member Federal

Deposit Insurance

Corporation

Tele. NY 1-733

Tel. DIgby 4-8400

Public Service Co.
Circular

request

Y.

N.

Nassau

Security

Street

REctor 2-3600.

Philadelphia

Dealers

New

Ass'n

York

Teletype N. Y. 1-573

Telephone:

Enterprise

6015

Members

120

New

Telephone:
Bell

New York, N. Y.

York

Security Dealers Assn.
Members

52

WILLIAM
Bell

ST., N.

Y.

NY 1-635

New York

New

York

HAnover 2-0980

Teletype NY 1-395

REctor 2-7400

Teletype

request

IRA HAUPT & CO.

Members
New

York Stock Exchange

Broadway

upon

HART SMITH & CO.

REYNOLDS & CO.

INCORPORATED

Tel.

England

Welder Co.

Kobbe, Gearhart & Co.
45

New

Products, Inc.

Securities

YORK
PITTSBURGH

2168

..2175

Our

sense

Federal Machine and

Exchanges

DETROIT

.2172

Purolator

Over'The<• Counter

Trade

Members
CHICAGO

.v.,

.................

Municipal News and Notes...

me.

feel

Trusts

Our

makes
to

2173

Flotations.2179

Securities.

dollars.

approach

to

Stocks.

Calendar of New Security

Members

JERSEY CITY

Exchange

Exchange Bldg.

Cotton

Insurance

ion

Distributors

Basic Reports upon
Y.

and

His

REQUEST

15 EXCHANGE PL.

in active and inactive

Inc.,

Exchange,

Commodity

New

York

INDEX

three

Syracuse

Exchange

York

New

Delaware,

I

Exchange

New

look to prosperous years with
budgetary surplus with which
gain reductions.
NORMAN C. NORMAN

Exchange

Curb

a

in

of

FUND

*-—INCORPORATED

I
Actual

Stock

HUGH

SECURITIES

Williamsport

Pittsburgh

1856

York

on

to

Tomorrow's

provisions that will enable us to

Wholesale

PHILADELPHIA

Albany

Troy

York

debt

Securities Salesman's Corner........2171

Street, New York

BOSTON

New

some amor¬

outstanding

our

the realization

Established 1927

New

will include

of

place too heavy a tax burden
our
economy.
We will have

may

neighbor¬

hood

v

R. H. Johnson & Co.

'

Members

tization

be educated to

PROSPECTUS ON

ENGINEERSand CONSTRUCTORS

H. Hentz & Co.

merly accustomed to Consols and
To expect a budget which

Rentes.

each year

the

for Banks, Brokers

Sanderson & Porter

Established

very much as the
French
were
for¬

lems is the lack of definite legal

BOND

WAR BONDS

NEW YORK

on,

and

major prob¬

MANHATTAN

Buy

FINANCING and VALUATIONS

52 WILLIAM STREET

British

WILLIAM K. PATpN

;

go

years

OF THE CITY OF NEW YORK

with

MANAGEMENT PROBLEMS

N.

given in previous issues

were

REPORTS

In connection

1

com¬

views

the

also

SURVEYS AND

Chicago

the

and
forth by Dr. Saxon

ters

regarding

people

"The first of these

'

v

13.

"Chronicle" received various

tional

1

"Our

green

Mr.

QUICK ACTION ON DESIGN

May

its suggestion,

-

sold on the idea
of investing continually in United
States
Treasury
Bonds as
the

to

War Plants Face Two Problems

two

Government.

Illinois

of

line with

—-

erally must be

possible post¬ sion planning has been going on
Dover, Delaware
I
have
just read the article
war
employ- since last October without inter¬
I was much interested in read¬ written by Dr. O. Glenn Saxon
ment," Mr. fering in the slightest with our
"Can the United States Support
Christo p h e r
production
of
Packard-b u i 11 ing the article by Dr. Olin Glenn
a
300 Billion Dollar Debt."
said.
"To ac¬
Rolls-Royce aircraft engines for Saxon, Professor of Economics at
It is indeed very interesting and
complish this, Lancaster, Warhawks, Hurricane Yale University, on the question
of
definite
deci¬ and
our
being
(Continued on page 2174)
Mosquito planes and our pro¬
able
to
sions and ac¬ duction of
sup¬
engines for the United
tion
relating States Navy's famed PT-boats," he port
a
na¬

G. Johnson

P.

growth.

war<S>——

timely article, bearing the above
caption, which appeared in the

„

time

in

employed in

working out a sound solution of
problem,
in
an
extremely

and others

contracts when peace comes.

investors

the

In

prompt action, perhaps legislation
by Congress, is necessary to in¬
sure
the rapid demobilization of

of

millions

bonds in the methods

—

——

ment

"We want to shorten the inter-

point where it
take

Hotel

the

at

Biltmore.

aviation to the

can

from

transition

the

expedited so that post-war employment will be accelerated,
T. Christopher, President and General Manager of Packard,

declared while here last week for.^H-

ing up the use
of

it

be

can

the

money

the

experience by the Packard Motor Car Com¬

pany

build¬

of

of

in planning for peace-time re-conversion while, at the same
time, continuing to meet and beat its war production schedules, has

Af¬

ter

months

Seven

pro¬

will

PLANT CLEARANCE IS PROBLEM

■

up

portions.

job

Handled

Be

In Advance To Hasten Production

this
has

industry
to

Should

in

Because

war,

been

Can, and will, the gigantic post-war Federal debt be redeemed
of present or pre-war purchasing power, or will it be
repudiated directly or indirectly, in whole or in part?
Dr. Olin
Glenn Saxon, Professor of Economics, Yale University, undertook
to supply an answer to this question of primary concern to the
entire nation and, at the same time, discussed the vital stake of

Christopher Says Legal "Paper Work"
Re-Conversion

On

responsibility when

is

war

A 300 Billion Dollar Debt?

Economy

industry, which has

Montreal

Toronto

111 Broadway

Stock

Exchange

REctor 2-31Q0

Teletype NY 1-1920

COMMERCIAL & FINANCIAL; CHRONICLE

THE

2162

"Trading Markets in:

.1

We Maintain 'Active Markets In

Nu-Enamel

brown co. 5s

Common

5s

Established 1920

40

HA 2-2772

Exchange ML, N.Y.
BELL TELETYPE

Telephone BArclay

7-0100

1971

Quoted

r

:

>

»

;

.

&fo. Steiner,Rouse&Co.
t

Members

'/
New

/

York

Stock

120

25 Broad

Exchange

Tel.

KEctor

St., New York, N. Y.
NY 1-1557

,

New

BROADWAY, NEW YORK

-

Members New York Stock Exchange

'■* '. ''

'

■

Exchange

New York Curb'

NEW YORK
Teletype NY" 1-672

BROADWAY

115

Sold

McDonnell

;;

Exchange and Other Principal Exchanges

Members TV. Y. Stock

Dealers Ass'n

Security

3.,

Bought

y60, Common

Goodbody & Co.

KING & KING
New York

—

Wyoming Valley Public Service

Residual Certificates

'$9, Common, Pfd.

MINNESOTA & ONTARIO PAPER

United Gas Improvement

Debardelaben 4s, 1957

Improvement

—9S3, Common, Pfd.

Chic. & South'n Airlines

Alabama Mills

United Gas

ABITIBI POWER & PAPER

National Airlines

Members

Thursday, June 10, 1943

2-7815

Direct wires to

NY 1-423

.

Orleans, La.-Birminghant, Ala.
brahch offices

our

-

Gov. Bricker Hails Two

Party System As ^
^ Ds La Ohapeile Pres. of
Guardian Of liberty And Free Government BdnilClisbofH;Yi

"A"

Allen B. Du Mont Labor.

prelude to the destruction of any free government is .the / Richard de La Chapelle /of
Governor John W. Bricker of Ohio Shields & Company, was. elected
declared, speaking before the Republican Women's Clubs 6f Missouri. president- of "the ; Bond, Club .of
Scoring the bureaucratic system of government,..he said there1 is."no New /York at its .annual meeting
place in America for secret understandings./
■' -—x".
..;r. V held June 9 at the Bankers Club.
"Where there is. open debate,": Governor Bripker- stated, "where He succeeds Albert H, Gordon, of
there is competition upon issues %
Kidder, Peabody & Co.
'The4 new president of the Bond
End4 Democrats fight
for the votes of the people there publicans
The

Axton-Fisher Tob. "B"

Ft. Dodge,

Des Moines & Sou.
& Bonds

Com.

Pittsburg Hotel S's, 1962 & 1967

& Pfd.

Elk Horn Coal, Com.

is

become

one-party

a

There

serve.

lieve

then

sition,

1-1227

and

reckless

In war-time,

even

who be-

some

are

say

in war

that

which

duction of American business and;

sent

labor in this

the

upon

great

gains

made

in

last
and

Bonds & Stocks

tile

1

to

of

George A. Rogers & Co., Inc.
Jersey City, N. J.

honor

our

ha

i

of

''

Union.

g

'

♦

War knows

n

some

stoppages

should

These

work.

cease;

party lines. Re-I

(Continued

on page

-2174)

.

.

'v 0 .r

1955-57

s,

,

Struthers Wells
Common

&

In

-

profiteering,
the

only

which

markets and<$
:—, /■.' ■
/;■'
He said pects before us for the 1943 food,
"is to abandon year. •
?
;
■

course

..

proved

were

now

a

in

failure

use

in

other nations,

in the last war, or
copied from the British, whose
situation is wholly different from

are

ours."

Associated Gas & Elec.

Mr. Hoover declared that

"remedy for the

1943 harvest is
late, as the planting is
mostly done," but he said there

BONDS

too

now

Cities Service Co.

is still time to redeem the situa¬

PREFERRED

Bell

artij

Tel. HA never 2-4850

Teletypes—NY

-

experience and
bur problem;

will make

some

recom¬

mendations ; for the future.

'£ ;
The strategy of the food front

carry

1-1126 &

Eastern

-

..

.,

text' of

follows,

Mr.

Hoover's

according

ad¬

the

to

I

propose

checkup
on

on

tonight to make a
where we have got to

I shall then examine the pros¬

Ohio Match

RobertC. MayerS Co., Inc.

STANY Ambulance

,

of the food

front has lost wars before now. /;

FunADrive Progresses

'Telephone DIgby 4-7900
Bell System Teletype NY 1-1790

stronger

on

We must

now

ized

the

Association of New York to raise
funds to

purchase ambulances for

United

the

Armed

States

Forces

has

HODSON & COMPANY,
Inc.

,

Contributors to Date

;

Samuel Goldschmidfc

;

Edwin F.

/

v

•

,

Peet

Charles W. Goodeve

^

165

O

Goodbody and Co.
B. Ashplant & Co.

Broadway; New. York

F.

Gordon Saunders Co.

military

H.

build up-the

F.

H. Egly
Taylor Root

Homblower

It should-be reorgan¬

William A.

Our job is not de-

again.

.

campaign of the Security, Traders

Frazier,-Free & Co.

grow

.

Results of the first week of the

Through the glorious courage
and ability of our Army and Navy
we are making progress against &
most cruel and mighty enemy. We

food front.

Established 1915

30' Pine Street, New York

Failure: to recog¬

importance

front.

the food front.

I propose to explore what hap¬
pened during the 1942 food year.

1127

the

■

Spokane Int'l Ry. Esc. Recpts.

''

•

Corporation, Common

ScrantonSpg. Brook W.S. Pfd.

Securities Corp.,
Lee: M.'- Limbert of Blyth &

!

WHitehall 4-8120
Teletype NY 1-1919

Interstate Bakeries, Pfd.

King of j Union
and

Broadway

Bell System

proved quite gratifying ac-,
cording to the report from the;
is
second only to the military committee.
Contributions should;
front in winning total war. " It
be made to members of the com¬
is of more importance than the
mittee, checks made payable to
military
front; in
establishing the Security Traders of New York
peace.
Total wars' can be lost on Ambulance Fund.
*
nize

The

Y. Security Dealers Assn.

St., N.Y.

I

the food front.

changes in national
made to build up the
harvest for 1944.
•
i
are

New York "Herald Tribune":

37 Wall

And

policies"

dress

Members N.

I shall, from this

the world need state

tion if "drastic

York Ice Mach.

ana

terms

-

BONDS

&

Members New York Curb Exchange

65

r

prices, local famines,-

black

the obsolete methods

Teletype NY 1-1843.

COMMON

•

stifled farm production."

Street, New York 5

;

'

...

an

"to clear up this muddle of uncontrolled food

Telephone: WHitehall 3-1223
Bell

■

address delivered before the American Farm /Bureau Fed¬
eration at New York City, Mr. Hoover offered a nine-point program,

H. G. BRUNS & CO.
20 Pine

whose

Co.; Inc.

the peace.

Preferred

SVt 8, 1949

quoted

Members New-York Stock Exchange

-

Harfy W. Beebe of Har-

Urges Reorganization Of Food System--^
Offers Nine-Point Program To Clear Up 'Muddle'

.

Natl. Oil Products
3%

Governors

Former President Herbert Hoover on June 8 called for reorgarw
ization of the nation's food system in order to win victory and secure

^,

sold

Edward A. Purcelf & Co.

of

Bank, Joseph; A. W. Iglehart of
W. E. Huttori &• Co., Joseph H.

Hoover

Ltg.

7% Preferred

.

Bryce

Frederic

riman Ripley & ,Co., Inc., Eugene
R. Black bf The Chase National

1952

Nassau & Suf,

They are: T. Jerrold

year terms.

over are:

.

Indiana Limestone

■

bought

the Board of Governors for three-

( abuses; but there is a grave, need

no

BONDS AND STOCK

.

the
largest Republican delegation in
Congress of any state
of the
v

Laboratories

Clark, Dodge & Co.,
H.
Brandi
of
Dillon,
Nevertheless, business and labor, Read & Co., and Henry C. Brume
have responded in a magnificent of the Empire Trust Co.
James Coggeshall, Jr., of The
way.
«
We should not let our judgment First, Boston Corp., was elected a
be clouded by the apparent and, governor to serve the unexpired
I grant you,, all too many, flagrant term of George D. Woods.

of

Congress. You
join Ohio in
John W. Bricker

is a bright spot;

war

have been

There

the

■

•

Dumont

.

ower

house

Telelype NY 1-2361

;

.

upon

solid

Value

the

expenditures,

Broadway, New York

Henry G. Riter, 3rd, of Riter &

you

you

All "Inactive"

120

REctor 2.7634

tion

I

congratulate

Inc. 6s,

request

C. E. de Willers & Co.

Company.-- v;...;-v;

election,
the
delega¬

will

dead.

be

New York, N.Y.

on

Club has been in the investment

unsound Co., was- elected Vice-president of
business principles, political man-, the club, filling the post held by
ipulation and unsound financing, Mr. de La .Ghapelle during the
are the rule.
I say to you that in, past year. Other officers elected
war, government ought to be even at the meeting were W. Fenton
more
efficient. V The • best; men Johnston, of Smith, Barney & Co.,
should be utilized' in every in¬ secretary, "and"- Walter W. Wilson,
stance.
Money should be more of Morgan Stanley & Co.-, treas¬
Icarefully spent. Labor should dil¬ urer,
";w.
.f
i ;
^
Three members were elected to
igently work. The amazing pro¬

liberty of

America

L

per

Ph. & Read. C. & 1.6s 1949

business since shortly after% the
administration. to previous World War. and is a
the full limit of, their capacity, to member of the firm of Shields-Sc

voice in oppo¬
the

of any

$50.00
1942

Annual report

be used by any

his

lifts

one

Broadway, N. Y.

Teletype N. Y.

share

.

leadership of both parties > should

govern¬

ment, when no

WOrth 2-4230
Bell

and suffer and die.

But when

need for alarm.

no

we

Baltimore Stock Exchange

120

Colortype Pfd.

over

'

Mitchell & Company
Members

Earned

destruction or tne party system,

Stock

Merchants Refrig. 5's, &

American
y.

Franklin

Weeks

&

Rosshandler

(Continued

(Continued on page 2176)

Clothing Stock Looks Good

"

Co.

and

i

on page

2178)

An interesting descriptive cir-'
on Fashion Park, Inc., which

cular

the firm believes offers attractive

possibilities,

Hoboken

Ferry

We

<

Specialize in

5s, 1946

TITLE COMPANY CERTIFICATES
Missouri Pacific

TRUST COMPANY PARTICIPATIONS

Serial 5% s

WHOLE MORTGAGES

Seaboard Air Line
1931

6s,

It will be worth your

Certificates

1945

buying

or

while to check us before
selling any of these securities.

STERLING INVESTING CORPORATION

.A.Saxfon&Co.,Inc.
WHitehall 4-4970

70 PINE ST., N.

II

Y.
Teletype

NY

1-608




share
Earnings

Accumulations $17.50 per
as

of April

1, 1943.

1942 in excess of $9.00 per

share

distribution

burn &

j

5s, 1931 Bonds
5s,

FASHION PARK, Inc.
$3.50 Cumulative Preferred

has

been prepared;
by Simons,; Lin-j
Co., 25 Broad Street, New;
York City, members of the New;
York Stock Exchange.
Copies o^
this circular may be had from
Simons, Linburn & Co, upon re¬
quest.
for

[I

42 BROADWAY
BOwlIng Green 9-0480

NEW YORK

Descriptive Circular

on

Pell & Co. To Admit

Request

Pell

SIMONS, UNBURN & CO.
;

Members New York Stock Exchange

25 Broad St.
HAnover

2-0600

New York, N. Y.
Tele.

NY 1-210

&

Co.,

14 Wall St., New

York

City, members of the New
York Stock and "Curb Exchanges^
will

admit

partnership
June 17.

Miss

in

May

the
:

Moore

firm

as

to

of

Volume

The

COMMERCIAL and

FINANCIAL
William B.

BEekman .3-3341;.',
Herbert

,'

D.

I

•'

:t

.

Antilla Sugar

■

•

William Dana Seibert, President- ;

;

PREFERRED STOCKS

Est.

week

a

Thursday (general

news

vertising issue) with
issue

Monday]

on

stocks

Cuba Railroad

Members New York Stock

99 WALL

Exqhange

1943

by

William B.

STRAUSS BROS.
Members

32

Dana

NEW YORK

,

Reentered

as

second-class matter Feb¬

Y.,

the

under

Act

of

Harrison' 2075

Teletype CG 129

March

-America;; Spain,■? Mexico

and

^

OUR

;'"Along with day-to-day effort to win this

7:

REPORTER'S

NOTE—On account of the fluctuations
In the rate of exchange, remittances for
foreign
subscriptions
and
advertise¬
ments must be made in New York funds.

REPORT

dustry and for this company.
.!
"In the 25 years since World

War I, transportat i 0 n in

7

Bullish

activity in secondary
speculative railroad obliga¬
was
tempered considerably
in the course of the past week and
sufficient
selling
developed
in

Estate

Department

Securities
;

such issues down to the levels of
almost

Prudence Co. Issues

Call

/

Members -New

and
backbone of

by

40WaIlSt,N.Y.
Bell

Stock

of

I; ;

mo

been

of

has

the,

the

-

been

the
turnover in

a

confusion

smart trader finds

e

re

'500%.

"sump t i
in

e r e

more

Con

a s

ed

600%.

and

Before ration¬

himf

ing .this coun¬
try, was ^coii-

7-7-\.7 ■ 7 ;7f :
suming the
treme ndous
recognized that the
R. W. Gallagher
total of 500,present prosperous state of the
carriers in general is not the re¬
000,000 barrels
sult of the waving of any magic of gasoline each year.
!
"They tell us that the auto¬
wand, but rathef a direct outcome
mobile of the future will run bet¬
of vast war-created traffic.
!
ter

Consequently all the talk » of
Impending collapse of Italy; and
speeding up of preparations for

BRIEFS

less fuel.

use

be

has

had

continent have been interpreted

It is

-

.

remarkable

a

as

now

BOSTON, MASS.
is

ment

made

—

of

Announce¬

the

opening,

effective June 14, of Shea & Co:,
which will engage in a securities
business from

offices at 31

State

Street.

Principal of the firm is
John L. Shea, and associated with
him wiil be James J. Lynch.
Mr.
Shea
was
formerly
an

terminated

suddenly, it is ar¬

"But

future of the

the

he

was

of

a

Sears

Corp.

partner in the finn of

Formation

of

Shea

previously- reported

&

in

Co.

the

was

AIRLINES

Co.

Ctfs.

Mtge.

Co.

Ctfs.

Title

Co.*#

Bond
and

&
all

Bank

other

Trust

,

Participations

.J.GOLDWATER& CO
■

*

.'.INC.

■

Members New York Security Dealers Attn.
39

Broadway, New York, N. Y.

HAnover

2-8970

Teletype NY

1-1201

*

Botany Worsted Mills
Consolidated Textile

dustry -is

dependent alone
upon the automobile. New fields
of transportation are being opened
up which will depend heavily on
oil products.
"Before the war, airplanes tvererelatively small customers.
The
stimulus which the war has given
to aircraft will show itself in: post¬
war development.
It is currently
estimated that passenger .travel by
air immediately after the war will
not

be 10 times what it was when the

But there will be

(Continued on page 2177)

;

Punta

Alegre Sugar

Vertientes Camaguey
Farnsworth Television
*York Ice
^Analyses On Request

J.F.Reilly&Co.
Members

;, New [York

Ill

Assn.

Broadway, New York, N. Y
REctor 2-5288

'■■i.
Bell

lis Peak?

Dealers

Security

,

.

N, Y. 1-2180

System Teletype,

Stromberg-Carlson

obvious that the pace ofr the rise

Federal Screw Works
common

and rights

Bartgis Brothers

Mfg. Co.

Miller Tool &
Memoranda

request

on

Jg
Est. 1926
IIIft10b
170 Broadway
Bell System

COrtlandt 7-6190
Teletype NY 1-84

Central States Elec. Corp.

(Va.)

Common, 6% Pfd. &7% Pfd.

...

/

.

and

still

leans

to

the short-term

end

of the month,

banks will, be

limited, in their subscriptions,: to
80% of the total, or $2,000,000,000.

,

Details of the hew issue will i

(Continued

on page

2174)

setback.

77;

"7
The chief limiting factor is the
labor supply.
With the armed
forces still expanding, and with
the necessity for maintaining food
production, it is difficult to in¬
;

"

dications

that

industrial

Great American Industries

produc¬

was nearing its peak would
highly significant, as it would
indicate the approaching culmina¬
tion of the cycle, and once a de¬

'

tion

Indiana Limestone 6s,

be

cline

1852

Berkeley-Carteret S^s, 1S51

set

in, it would usually be
crease the industrial labor force.
considerable and probably rather
Another factor is that conver¬ rapid.
■,'
7"-''
sion to war production has gone
But, should it prove correct that
about as far as it can, with some industrial production is now near
two-thirds
of production along its peak in volume, no such se¬
war lines.
And in some, types of quence is likely," at least while
war materials, production is - suf¬
(Continued on page 2177)
■

Savoy Plaza 3-5s, 195S W.S.

Frank C. Masterson & Co.
Members
64

New

York

Curb

Exchange

NEW YORK

WALL ST.

Teletype NY 1-1140

HAnover 2-9470

—

BOUGHT

SOLD

•

QUOTED

American Export Airlines
Braniff Airlines

Chicago & Southern Airlines

The Fermutit

Mid-Continent Airlines
Northeast Airlines

National Airlines

Company

Ambulance

Fund

-

Bought

-—

Sold

Quoted

—

Penn Central Airlines Pfd.

Support the Security Traders
Association

of

New

drive for funds to

H0RRSSESIR6STER

Ambulances

Members New York Security Dealers Association




Established

-

Members New

Trinity Place, New York 6, N. Y

Telephone:
BOwling Green S-7400

York

buy Army

Bristol & Willett

Established 1914

74

Ctfa.

Complete Statistical Information

-

^Fi¬

nancial Chronicle" of June 3.

Co.

Title

~

and

H. D. Knox & Co.

Invited In

Mtge.

oil in¬

rounding conditions

view, perhaps in the hope of
its catching another turn when more
predecessor, Sears & Co., Inc., for sober judgment takes hold. 7 i
many years.
Mr. Lynch was with
80% For Banks
the Sears Corp., and prior thereto
When the Treasury offers fits
was in the trading department of
new $2,500,000,000 loan around the
B. F. Marshall & Co.
In the past
officer

In

Lawyers

*

are now dif¬ standpoint, by contracts for other
ferent, and the peak of production types of war equipment which are
likely to be attained (which might still in insufficient supply. Any
to keep the railroads busy for
be in the 210-220 area) is not slack will undoubtedly be taken
some time in the future trans¬
very
far above present levels. up by allowing larger civilian
porting the goods of peace.
*■ Moreover
the rise in industrial production in important lines with
But as
one
commentator put production has now persisted for shortages,,
'■'77',;
—7-' ■■
In a normal economic cycle, in¬
it, the speculator has not changed about five years without a major

gued, the vast job pf world-wide
rehabilitation might he expected

Specialists

toward

"

Shea & Go. Opens;
Jas. Lynch Associated

4-6551

tion and similar features will be
a

in industrial produce
signalling the beginning of v
pick-up since the first of the yea*.
the end for the Axis, at least iri y: fipn,\as measured, by the- Fedeital Reserve Index of Industrial pro¬
duction (seasonaH^^
Confidence seems' to be returning,
has -definitely slowed. From January
that part of the world. 7
7'C to April this year the gain was only from 199 to 203, and May is
but idle money, is seeking seasoned
Rather
liberal
selling
which
probably only a point or two higher. Furthermore, the Federal
securities. Inquiries denote a con¬
came into the rail bond list, how¬
Reserve statisticians have recently been tending to lower their final
tinuance of good business for an
ever, seems to some observers to
figures from the preliminaries and#
Indefinite
period ahead.— LeRoy suggest quite hasty jumping to
estimates;
ficient or even more than suffi¬
.7
,r
Jf. Snyder, LeRoy H. Snyder & Co.
conclusions, even though it is rec¬
It
is true
that the January- cient, so that large contracts for
ognized that the cards are .being April rise last
year was only from some war equipment (tanks, for
stacked rapidly against, our ene¬ 171 to
173, and that the Index example) are being canceled.
mies.'
<
77 7 •' ';7:77 later that year rose rapidly, reach¬
Of course, these contracts will
Yet even should the war fee
ing 197 in December.
But sur¬ be replaced, from the over-all
Business

Arm

Inquiries

of automobiles.

more

petroleum asphalt products. Cars
equipped with two-way radio, air
conditioning, portable' refrigera¬

Industrial Production Hearing

Allied invasion of the European

Easton, Pa.

on

will

comfortable,
easjer and cheaper to operate.
They will use super-highways fed
by ; new secondary roadg—roads
which will use newly developed

of

o n

It is widely

NY 1-2033

Cars

WHitehall

Lawyer#

-

■'shorten sail.

Exchange:

much wider

a

constant inducement to owners
greatly expanded use of
the] automobile for pleasure and
than

ased

motor fuel has

f

self in that state he proceeds to

DEALER

v

have

section

It

considerable

when

Whitehall 4-6330

Teletype

'

listed bonds, revealed evidence

City Banks

York

that

market,

Newburger, Loeb & Co
■

In

active

V

v

Au-

tomobile reg¬
istrations haye
incr

'

for quotations

us

month ago.

a

Speculators- who

•

Mortgage Participations
Issued

tionized.
-

has

revolu¬

been

spots to turn the average prices; of

Title Co. Certificates

New York

States

tions

has specialized
twelve years in:

for the past

United

the

and

Real

W•

giving a
all interested in

Trying to foresee what the worlds
after this war holds for the oil in¬

we

REAL ESTATESECURITIES

war, we are

great deal of thought to the post-war world. We are

Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

Our

Industry

At the annual meeting of stockholders held last week, Ralph W.
Gallagher, President of the Standard Oil Co. of New Jersey, made
the: following remarks regarding the ^peace time prospects for the
oil industry:
'
';77\ r 7V.'"
."7 ' -7

CHICAGO

-

Teletype NY 1-832. 834

Subscriptions in United States and
Fosessions, $26.00 per year; in Dominidn
of Canada, $27.50 per year; South and
Central

The Future Of The Oil

Ass'ft

Board of Trade Bldg.

DIgby 4-8640

ruary 25, 1942, at the post office at New

York, N.
3, 1879. '

York Security Dealers

New

Broadway

see,

STREET, NEW YORK

Telephone:

Chicago—In charge' of
Fred H. Gray, Western Representative,
Field Building (Telephone. State 0613).
London—Edwards & Smith, 1 Drapers'
■Gardens, London, B.C.
/<; 7
•'•77'

Yon

Teletype NY 1-5

other Offices':

Copyright
"Company.

bonds.

price!

Telephone HAnover 2-4300

t'¬

pleasure driving a
with
ua
on
obsolete

and

actually want them, so you don't
have to gas much with us about

25 Broad Street. New York

[every
and ad¬

real

a

"bargain

&

encer

statistical

a

PLEASURE DRIVING
It's

Thursday, June 10, 1943

twice

AMD COMFANY

One Week Nearer
Victory!

Public Utility and Industrial

William D. Riggs, Business Manager

Published

"■■llOHTlDSIflil

High Grade

:

.

Editor and Publisher

interested in offerings of

Alegre Sugar

Vertientes Gamag'y

'•7

Seibert,

are

;

.

Spruce Street, New York

,;'s

:

We

Punta

Dana Company

Publishers
25

2163

|

CHRONICLE

Reg;^. s.'Patent;pfficev^ / -•},•> *.

.

.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4184

157

York

-1929

.

.

Security Dealers Association

CRAIGMYLE, PINNEY & CO.
Members

Teletype:
NY 1-375

115

Broadway, New York 6
Bell

•

Tel. BArciay. 7-0700

System Teletype NY 1-1493

New

York

Stock

Exchange

ONE WALL STREET, NEW

Telephone

WHitehall

YORK

4-5290

THE COMMERCIAL & FINANCIAL CHRONICLE

2164

Thursday, June 10, 1943
ST. LOUIS

Troster, Currie & Summers
Members New
74 Trinity

York

New York Title &

Mortgage Co.

Security Dealers Association

SERIES C-2

Place, N.Y.C.—HA-2-2400—Teletype NY 1-376-377

SHEPARD NILES CRANE & HOIST

Complete descriptive circular will be sent

Stik

request.

upon

DIVIDENDS PAID

1940-1:

$4.00

1942

$6.00

T

1941

1943 to date.

509 OLIVE ST.

$5.00

' 3314

Private

Wires

Buffalo

to

-

Members

New

York

Pittsburgh

-

Teletype—SL 80

Security Dealers Association

41 Broad Street

Detroit

System

Incorporated

351/2

Cleveland

-

Bell

Seligman, Lubetkin & Co.

$2.00

L_-

APPROXIMATE MARKETS
,

Co.

^

SAINT LOU/B

St.

-

New York

Telephone HAnover 2-2100

Louis

Teletype NY 1-592

•

>.

.<

Members St. Louis Stock Exchange

Real Estate Securities

at

least

considered

be

with

an

mind from the most practi-"
cal viewpoint.;
."'77
open

Prospects Appear Bright For Holders Of
New York TiSle And Mortgage Go. Certificates

At

tors

The increased,

York

Title

activity in the real estate market should have the

BK, F-l, C-2 and Q at

for many years.
The sound belief that
.

.

.

.

more

increase

in

During the

to cost.

higher point than for

to

resulted in

period

Company

Real

in

^

1937.

similar
covered by
any

year

Board

dollar

higher

'INCORPORATED

any

Estate

the

statistics, and
of
trading
except that of

any

Cost of assets

Investment Securities

Cash

building

New

of the properties held in
trusts, which the trustees
charged by the court to liqui¬

come

32.

cost

in¬

net

(in most

the amount of the foreclosed

mortgage)

and

analysis
should be sound purchases for the

FLORIDA

real
«'v

•(

attractive

an

the trust's

on

cases

MIAMI

Vy'?

\Y:'.

t

'

upon

made

tificate
final

that

it

some

can

amount

will

liquidation of

trusts,

cer¬

receive

in

is generally conceded
figure between 75%

and 85% is reasonable and in some
cases

7 ANNOUNCING

100%. A recent
property by the trustees

a

series

of

drain

with

td

and

expenses

14, 1943

as

C-2,

insufficient

a

taxes,

the

on

income
operating
in fact was

cover

trust

for

about

$5,000

a year, was
sold for all
cash at about 60% of cost. It seems

SHEA & CO.
31 State

high

as

sale of

OPENING FOR BUSINESS

reasonable to

St., Boston, Mass.

that if such

assume

can
be disposed of at
figure, other properties
showing substantial earnings can
be liquidated at a much higher ra¬

asset

an

Tel. LAF-4480

Teletype BS-555

such

ASSOCIATED WILL BE

a

of cost in relation to current
ket
is

of

an

ity

series

C-2

of

indication of how the

is

levels.

Old Timer
Out of the Street for 2 years with
industry, wants connection with sub¬

stantial

for

New

York

Stock

Ex¬

house

sistence.
and

underpriced
analysis

full

ex¬

Address giving

with

vision

and

per¬

Experienced in branch office

wire

charges.
Other
recent sales show liquidations at
100% and better than 90%.
The
fixed

carry

generally
final

75% to 85%
estimate under

conceded

liquidation

particulars

Office Box 26

-5-C,

Post

Trinity Sta¬

tion, New York City.

supervision, setting up new
offerings, syndication and wholesale.

these circumstances
servative.

listed

at

developing out-of-town

business.

quaintance

of

Minneapolis
leans.
cial

^Actually

7':.;7'vy:

the

$2,717,510.11

move were

to the
fact that the trust's liability was reduced
by the acceptance of these certificates the
net asset gain, resulted.
'• \
»
;'i"\»
properties was $426,955.09,

Box

Intimate

long

and

D8,

standing,

south

to

Commercial

un¬

dealer
west

New

&

ac¬

to

Or¬

Finan¬

Chronicle, 25 Spruce Street, New

levels

As

of

the

appears

present

con¬

market

series

various

but due

ites

bright for

is

his death did not al¬
low this procedure to be followed
with the result that the liquida¬
tion problems of the trustees in

called

'

Recently a new Justice has as¬
jurisdiction over all re¬

There is the

sumed

organized certificated issues. The
information coming to this column
is

that

trustees

of various

in"

issues

which

ance

ment.

will' involve

certificates

of

that such

Situation Attractive

of the market in the

proposals will

Public

Service

Ira

may

be

Haupt & Co.

in

New

Co.

obtained

has

from

upon request.'




*

•

*

•••;

•

On June 5th the Dow
ages

closed

aver¬

their highs,

on

close to them, 143.08.
TRADING

MARKETS IN

or

A high

close for

Saturday is often in¬

REAL ESTATE

dicative

of

SECURITIES

three

"*\

But

SHASKAN & CO.
Bell

PL.,N.Y.

at

least

two

to

days of strength.

the

next

trading

they

opened

day,
at

142.92, reacted to 141.50 and

Members New York Stock Exchange
40 EXCHANGE

more

Monday,

finally closed at 141.82. But

DIGBY 4-4950

Teletype NY 1-953

if the industrials closed well
on

ap¬

At

the

time

on

Saturday the rails acted

exactly opposite. I won't bore
you

these

BK

Sales
trusts

were

N. Y. Title and Mtge. Ctfs. created and
jurisdiction retained
by the New York Supreme Court,
Series C-2 Interesting
Seligman, Lubetkin & Co., Inc.,
41 Broad
Street, New York City,

con¬

sidered proposals for sale of assets
in which payment would be made

prepared
an
interesting possibilities, according have
analysis
of to the trusts in part cash, part
to
a
circular
prepared
by Ira series C-2 first mortgage certifi¬ purchase-money
mortgage
and
Haupt & Co., Ill Broadway, New cates originally issued and guar¬ part certificates which the pur¬
York City, members of the New anteed
by New York
Title
& chaser of the
property would ac¬
York Stock Exchange and other Mortgage Co.
quire in the open market.
This
leading Exchanges. Copies of this
Copies of this analysis may be procedure seemed practical as it
circular

past two

days.

*

Justice Alfred Frankenthaler

England

only the two stocks

mentioned above but the rest

in these securities would seem to
indicate

elim-

was

by the subsequent ac-k

tion of not

pay¬

The recent market activity

the

possibility

inated

accept¬

part

as

a

that

consideration certain proposals for
sale

a short "run
spark to set
general advance.
But

be

can

off

intend to submit to the court for

possibility, of

that such

course,

York.

New England Public Serv.

situation

not

they started

Active Markets:
*

Payment

current

gratifying to see it
generally known that

vance was

Franken¬

Justice

thaler upon

Acceptance of Certificates in Part

The

General

and

But while their ad¬

„

are

preciation.
*

the old line favor¬

Chrysler

Motors.

considerably below this estimated
ratio prospects seem

thisf

ing again. The leaders in

trust—127,600.02
loss on the sale of the

secur¬

at - present
of the real

An

Adept

change house; must be
perienced.

'7777,l,:

Net asset gain to

38 V2

shows very few properties that do
not

Bond Order Clerk

The latter part of last week
the stock market advanc¬

saw

y'.

mar¬

around

estate assets of the various trusts

WANTED

829,100.00
*554,555.11

,

tio to cost. Even this sale at 60%

1AMESJ.LYNCH

Keep trading house in
for storms.

up not on sogood buying but by
shorts getting out over the
these various
maintaining a high ratio to cost
Mortgage Co.
week-end.
,7
••7 ,7'/.
became a little more difficult.

the

to

as

holders

New York Title and

JUNE

mortgages

Successors to

While'no accurate estimate

;

fect.

order and prepare

1,333,855.00

Certificates in part payment

V

investor.

estate

i

be

signals in¬

.

date, show

'■■■'

!

payment;

these
are

security

•

-

$2,589,910.09

____

bear

tensified last few days. Labor
troubles not a cause but an ef¬

$127,600.02;;

liquidated (plus

brokerage)

Rec'd by the trust in

week's

Last

"Net Asset Gain to

a

the Trust Estate" of

volume

than

By WALTER WHYTE

In

fact, the following ex¬
ample shows how this procedure

Most

911

WalterWhyte 77;

vantage of the trust estate in that
it raised the raxio of liquidation

first four months of this year the
total number of sales reached a

&

y

,

.

the

open-market sales of

Manhattan real estate.

Corrigan

Tomorrow's Markets

advantageous prices than

purchase of real estate as an infla¬
tionary hedge has, we believerbeen in part responsible for the and actually worked to the ad

Change of Corporate Name

cost and to inves¬

consider

purchases as an
hedge and for attractive
yield and appreciation.

effect of creating opportunities for the liquidation of real estate as¬
sets held by the Trustees of various certificated issues such as New

A tmounca

to

inflation

PROFIT POSSIBILITIES

INCORPORATED

to average

ers

PURCHASES AT PRESENT LEVELS OFFER

Corrigan, Miller & Company

present
market levels, it
logical for original purchas¬

seems

-

had

from

Seligman, Lubetkin &

Co; upon request.'

created

an

active market for the

benefit of the

certificate

holders '

RY.Title&Mtge.

with figures. If you're in¬

terested

C2

comparative
rails

Prudence Collaterals a-1"
and

you

can

check the

F1

as

action

of

by examining various records.
What I'm interested in is

all other

TITLE CO. CERTIFICATES & MTGS.

the

against the industrials

clusions.

Here is

one

con¬

conclu¬

sion.
❖

S9EGEL
39 Broadway, N. Y.
Bell

System

&

CO.

*

A market which closes well

Dlgby 4-2370

Teletype

1-1942

the

at
•

<

-

end of the week

(Continued on page 2168)

but

„rt^^m*t»HrHW#Wf»^^wii»K^ai*^i«w»B^^Ha^^^»«<ti«^wr^ffl^.^H<%^w^^'W^^»ti«w^HAr

Volume

t,.

*t&\

KH

uijvwV'- ^Astt^A^unwi.'

vi., HUM

toartioVW- V/tf MPi>\1 ^

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4184

157

r^ N»jI^'

'

*

REORGANIZATION

Chicago North Western

i

''#a;

2165

>"•'

Income

RAILS

.;,-'-:.v'i

4y2sf 1999

"When Issued"

;

;

-

British Columbia
Circular

request

on

Telephone

41/2,8, 1961

Inquiries Invited

Canadian Pacific
'

pflugfelder, bampton & rust

NEWBORG 6- CO.

Members

...

New

York

Stock

Exchange

Montreal Lt., Ht. & Power

MEMBERS

L%?
New York

Stock Exchange
Cnrh

York

New

Baltimore

New
-

Lake

Salt

Chicago Mercantile Exchange
Commodity Exchange, Inc.

NEW YORK *?»

3V2s, 1956-73

Bell Teletype—NY 1-310

J.;

.

4s, 1961-69

t;

| Railroad Securities

i

The long-awaited

30 BROAD ST.,

;;

Shawinigan Water & Power

-

•

New York 6

Telephone—DIgby 4-4933

-

Winnipeg Grain Exchange

(Assoc.)
City Stock Exchange

Broadway

Board of Trade

Chicago

Exch.

HAnover 2-6540

York

New

Pittsburgh Stock Exchange
Louis. Stock

York

New York

Exchange

Chicago Stock Exchange
Philadelphia Stock Exchange
St.

York;

New

Exchange

Stock Exchange

Stock

Boston

61

Exchange
Coffee & Sugar Exch.
Cotton Exchange
Mercantile Exchange
Produce Exchange

New York Cocoa

board

Tele* NY 1-2972

Air

Line

various

liens

handed

to

the

federal

Hearings will be held

«

and

suggestions

will

Winnipeg Electric

be

to

as

the

district

June

on

treatment

in

court

draft

at which

16

time

for the
Master had

proposed

received.

Although the Special
consulted at great length with committees representing bondholders'
groups prior 'to setting up his draft<s>

contemplate making additions to your personnel, pleasf
particulars to the Editor of the Financial Chronicle for pub¬
lication in this column.5.',::
c
»y
you

send in

(Special to The Financial Chronicle)

YORK, N. Y.—Albert D.
joined the statistical

NEW

PORTLAND, .1 Maine.—Charles

Beliveau has

•

Chronicle)

Financial

The

to

C.—Ralph

N.

CHARLOTTE,

with White, Weld

& Co.

■

••

(Special

was

V-

1

Smith & Co. in Maine.

=.

Mk Carter Giinn Is Now
G. F. Casseil Partner

■

<

.

..•

•••

•

:

N.

E.

Gunn has been in the

Mr.

for

the

last

investment
(Special

to

DENVER,
Dines is

now

Fenner

•

(Special

DETROIT,

;

Mich.

:

MacKenzie

affiliated
McDowell
&

Mercier,

with

—

Dolphyn,! Buhl

Mr.

Building.

formerly with C. G.
McDonald & Co.
In the past he

Baird

was

was

secretary of M. L. Pardee &

Co...

,

.

:

municipal

'

•

Peterson & Company is now

business

not

securities

satisfy

their

also

was

receive

even

full

claims.

considerable

some •

Financial Chronicle)

Change of Name

Corrigan,

Miller

&

Company,

MIAMI, Fla.—Mrs. Frances S.
Iluey has joined the staff of Cor¬

Inc.,

rigan & Co., Inc., Security Build¬

porate name of Corrigan & Com¬

ing.

pany,

1

value in

of

the

generally

are

registered

able

bonds 'of

current

coupon

bond

.EROY A. STRASBURGER & GO,
1

WALL

STREET,

NEW

YORK

I

NY 1-2050

I

has

the

in the

the

or

end

Paul

Be

case.

that

up

as

Iowa

who,tbear the
of the necessary sacrifices.

Fla.

Security
announce

Building,
a

change

Miami,
of

Incorporated.

cor¬

Bell

matic

TELETYPE NY

HANOVER 2-1355

1-1310

upsetting of the respective

This

to

the

ignored

draft

the

an

ignored
of

would

have

a

of

question
influence

or

on

on

the al¬

securities.

new

of
the

that

and

no

reorganization

location
is

the

cash

This

false promise.

spect to the
ances

that

use

the

of large cash bal¬

have

courts

been

allow

Commission

eration.

which

of

bonds

allocation

for

the

which
The
way the plan was drawn the new
financing could not be eliminated
and the $11,000,000 of bonds dis¬
was

set

be

now

but

up

superfluous.

tributed to the bondholders.
factor

This

of the

major rea¬
sons for
remanding the proceed¬
ing to the ICC.
was

one

in

that

sidered
holders
of

are

The implica¬

there

now

other

allocated

of

$19,200,000

only

might go

events

con¬

bond¬
a

total f

new

un*der the plan.

retirement

even

1st

Debt
further

suggested above

further material strength¬

ening of the other remaining out¬

bonds. With this back¬

standing

ground it seems obvious that the
recent

pessimism

over

board bonds is not

most Sea- )

justified.
.1'

■

/

£

to

Master

Taylor

/J"

is

from

his

J'"r.

remarks

XVI—Subsection 3)

(Section
that "In the

event

between

of

16th,

we

have prepared

a

purchase,

the

Lackawanna &
Western

Ry.

STOCK

very

Seaboard for the first four months of 1943.

bought

*

sold

'

quoted

arnhold and S. BLEICHROEDER, Inc.
30 Broad St.

;

WHitehall 3-9200

>

•




New York
Teletype NY 1-515

1. h. rothchild
Copies

gladly
on

furnished

&co.

-120

n.

broadway

COrtlandt 7-0136

y. c.

Tele. NY 1-1293

a

t

Adams & Peck
63; Wall Street,

specialists in rails

request

"

the

possibility of some
similar development in the Sea¬
board reorganization seems obvi¬
ous

:
'

"

Special

will be ready shortly after the

June

•

with

hearings in Norfolk
brief comparison of
the NET OPERATING INCOME of various systems with the
on

;
,

other

to

accordance

obvious when it is

are

a

plan

time

in

orginal formula.

with

the

would

and,

securities
....

bondholders

the

the

at

of

purchase of these three ob¬
ligations in their entirely would,
therefore, presumably release the
$13,284,000
new
1st
Mortgage-

than

needed

$13,284,000

bonds, in addi¬

cash.

which

was

re¬

of the Receivers' Certifi-

SEABOARD! AIR LINE

Minneapolis, St. Paul & Sault Ste. Marie Railway Co.
ALL ISSUES

junior

Mortgage

alive

Western

reconsid¬

In the Rock Island

That

Pacific, North Western, and Mis¬
souri
Pacific to pay off senior
claims in cash.
Such payments
allowed
would
obviously
have

for

to the issuance of our report on the significance of
Special Master Taylor's Reorganization Plan for the

and if issued

total

to

plan
there were $11,000,000 of new 1st
Mortgage bonds provided for cash

built 'up.

typified by refusal
to

the

or

basis there

a

Retirement of the

a

case

tions

Prior

SOO
as

more

plans.

plan could
Press reports

;

The

the

to

at
1 as

Receivers'

tion

cates

liberal al¬
remaining bond
holders, but they would just as
certainly have resulted in auto¬
locations

assumption on the part
of many speculators
and inves¬
tors that the Special Master had

of

NEW YORK

ONE WALL STREET

York, N. Y.

Teletype NY 1-897

led to

covering

On such

1st Mortgage

the

factor of cash and this apparently

This has been

Members New York Stock Exchange

1935

i

New

correspondingly

plans under Section 77,
particularly the earlier ones, has
been their inflexibility with re¬

Mclaughlin, baird & reuss

Dodge 4s

Incorporated
Wall Street

63

zation

request

upon

1951

Fort

Frederic H. Hatch & Co.

One weakness of ICC reorgani¬

Circular

Seaboard will
have
$50,000,000 and perhaps
as
$60,000,000 in cash

located

any

consummated.

cash

"MOPS"

1938

4s

inflexibility was also high¬
lighted by the District Court's re¬
manding of the Rock Island plan

be

the

vs

5s

Sc

by

ments,

new

the assumption

ly bolstered before

utilization

"ST. PAULS"

Central

Des Moines

The weakness that developed in
Seaboard Air Line bonds is-ap¬
on

Central

Iowa

holders

that

Certificates,
the Carolina Central 4s, and the
Florida, Central & Peninsula 5s
(aggregate face value outstanding
with the public $19,242,000) would
appear as quite feasible, jln the
plan these three issues are al- ;

Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis 5s 1962

it

such treatment will almost
certainly be under fire from other

estimated

this year, not allow¬

ing for any interim bond retire¬

maining

Minneapolis & St. Louis 6s 1932
Minneapolis & St. Louis 5s 1934

may,

security

.

of

tirement.

(in reorganization)

;

Supreme Court decision in

St.

.

been

$30,000,000 and
$40,000,000 available for debt re¬

ST. LOUIS RAILROAD

de¬

as

be

accordance with

should be between

MINNEAPOLIS &

some

signed to meet the "qualitative
quantitative" question brought

others will

governing
the
allocations herein set

* *"

equivalent.

stated

.

principles
*

It

far

In

to the

in

out.

market.

WHitehall 3-3450 * Teletype:

:•

the

outstanding securi¬

any

secondary

roads

best

or

securities.

new

-

of

the

offer

to

these

at substantial concessions from

\

to

by

quarters this is construed

himself

When,

We

.

There

settled

Date

allocated

surprise

-

than 100% in face

more

Toronto

filing of this report

Effective

distribution

much

of

being

HAnover 2-0980

made, the securities of the New
Company
thereby
released
for

the

el aims

Y.

Montreal

the

of

least

divisionals

N.

Teletype NY 1-395

ties for which provision is herein

Lehigh Valley

new

sufficient

of

the

Plan,

Southern Pacific/ etc.

particularly true of some
secured
on
strategic
with good freight volume
did

ST.,

Bell

and

was

lines

WILLIAM

New York

time

Lackawanna

from

*

TEL.

markets in most
Bonds,
of

Illinois Central

,

that this will be further material¬

.

trading

New York Central

r

do¬ that1 at least the over-all treat¬
offices at 52 ment recommended
by the Special
William Street, New York City.
Master is the best" that can be ex¬
The firm was previously engaged^
pected.'', This viewpoint! fails to
in the investment business in Pas¬
give any recognition at all to the
saic, N. J.
Partners are Carl O.
strong cash position the road has
Peterson and A. M. Johnson.
already built up and the certainty
ing

Announce
to The

net

the medium-priced Rail

particularly obligations

divisionals

parently based

■.

(Special

of

general

brunt

Peterson Now In N. Y. C.

,

t

has" become

Baird

maintain

ac¬

-

•

C.

bonds.

Virginia

First

Chronicle).

Financial

to The

and has specialized in

years

S. handling

Colo.—Cortland

with Merrill Lynch.

& Beanne,
National Bank Building..
Pierce,

business

eight

Financial Chronicle)

The

The

52

that the formula used resulted in

CLEVELAND,
Ohio.—D. • B.
has become associated
;; CHARLOTTESVILLE, VA.—M.
with
Hawley,
Shepard
&
Co.,
Carter Gunn, formerly connected
Union Commerce Building.
Mr.
with Scott, Horner & Mason of
Chapman in the past was with
Lynchburg, Va., has been admit¬
Field, Richards & Co., Braun, Bos- ted to
general partnershop in C,
worth & Co., and Johnson, Kase
F. Casseil & Co., 112 Second St.,

V.

We

serious

many

treatment

Many rail men visualize
important changes before any def¬
inite final plan can be set up.

junior

Chapman

& Co.

be

the

to

HART SMITH & CO

expected

corded.

which

Chronicle)

The Financial

to

'V.

'V

;

will

.

-

This

Devonshire Street, Bos¬

with E. A. Pierce

•

.

past

In the

Building.

there

objections

generally

and the Portland office of Town-

& Co., lll

send, Anthony & Tyson.
In the
the staff of Thomson & McKinnon, past he represented Edward B.
Mr. Randall

is

disappointment
with the proposal was evident in
price declines throughout prac¬
tically the entire Seaboard list.

now

Edison Randall has been added to

Johnston

that

it

ton, Mass. Mr. Files was previous¬
ly with H. C. Wainwright & Co.

department of R. M. Horner Co.,
30 Broad Street.
:>?
:/
(Special

E. Files is

report,

5s, 1965 "A"

Special Master's reorganization plan for Sea¬

was

form last week,

objections

If

Railway

3i/2% & 4% Int'l

New York.

BOwling Green 9-8120
Boston

.

.

Philadelphia

Tele. NY 1-724
Hartford

Thursday, June 10, 1943

FINANCIAL CHRONICLE

COMMERCIAL &

THE
2166

Consolidated Dearborn
Our

AMPCQ METAL

UTILITY

PUBLIC

DUREZ PLASTICS
INDUSTRIAL
RAILROAD

service.

Analysis

on

request

industry

or

is

& So.

Inquiries on any

Standard Silica Corp'n

MUNICIPAL

Ryan-Nichols
BONDS

FAROLL BROTHERS

THOMSON & McKINNON
"

William A.
209 S. La

INCORPORATED

CHICAGO

& co.

Fuller&Co.

Members of Chicago

AC.ALLYN^COMPANY

9200

j. •'

■

South La

105

,

j

,

Salle St.

New

i

Stock Exchange

Salle Street • Chicago

Tel. Dearborn

:

and

1520

So. La Salle

208

CG 1399

,

York and principal

New

Stock Exchanges

Street

St.

CHICAGO
Andover 1430
Tele. CG 156
<

Toronto

Indianapolis

York

New

Andover

Member

principal exchanges

all

231 South LaSalle

i

CHICAGO

Tele. CG 146

Members
York Stock . Exchange

Phone

Milwaukee

Boston

New York

Ry.

and Common

of '91

4s

invited.

are

company

• j

Dodge, Des Moines

Ft.

investors with a

equipped to furnish
complete

and

expanded

greatly

been

has

INC.

:

CHEMICALS, Inc.

&

;;

Corp.

i

Com. & Debs.

r

Research Department

making the 8-cent street car per¬

Chicago Brevities .If®!

I
We have

prepared

reorganization of the war financing program effected by
the Treasury Department was a lively topic of conversation in La
Salle Street quarters last week. While official statements of opinion

!

an

analysis of

request)

Incorporated

were
tracked.
ers,

CG 1200

Circular

on

Chicago City &

Connecting Rys.

Collateral Trust Sinking

Fund

new

made this fare

permanent.-.

of

regular;

announcement

city and /
Transit Co. relative

The petitions of the

[■•

the Chicago.

to the unification plan asked for
of outlining plans for
Committee • of y an opportunity to produce addi¬
tional evidence on the desirabil¬
Illinois.
Mr.- Swift's appointment
ity and practicability of the pro¬
was announced following the New
posal.
The city expressed op¬
York meeting.
"y •• y;\y
position to the order making the
8-cent fare permanent, because
Morgenthau at Meeting
•

the

the Treasury

committee for

appointments
went
to
men
that formerly
headed the War Savings Staff
These

Illinois,

Second

Drive in Metropolitan

Loan

the purpose

made late last

heads of the new

chairman for the

as

Chicago, was in New York at .the
time a meeting was held there for

Announc e m e n t
week of the

Department.
was

5% Bonds

.

War

chairmen will

report directly to
;

at the close

■

set up along
the War Sav¬
Staff, with a chairman in

each state. These

financing

war,

The commis¬ the
authorized { the street car

sion

V

-

in.|

support of the
Treas
ury's

ithe [street cars.

on

a c

tivities

spring m e e t-company to place an 8-cent fare
ing of the Aspromised Mr.
into {effect on a temporary basis
socia t i on's
Swift the full cooperation of the
and, in conjunction with its ruling Board of Gov¬
association.
Mr. Whipple,.vwho
on the unification plan last month,
ernor s. His
served

state lines, as was

ings
•

bankers'

tion of America has

been

has

group

-

:

The

Committee.

president; of
Bankers Associa¬

Whipple,

N.

Jay

'y v the Investment

criticism
centered on the merger of the
War Savings Staff and the Vic¬
tory Fund organization into a
new unit, known as the War Fipoint of

focal

The

i nance

Smd for

investment bank¬
being virtually side¬

commercial and

S. La Salle Street

9600

company

new

investment bankers were lacking, it was quite
found the move objectionable.
The
the federal reserve banks were .{The OPA in its petition charged
being relegated to a secondary^that it was denied a full and fair
discontent with the reorganiza¬
position in future major war fi¬
hearing on the question of the
tion first were heard, was that
nancing drives, and that the Vic¬
street y car fare.
Prior to yApril
.the third war loan of the Treas¬
tory Fund Committees, staffed by
20,~ 1942, a 7-cent fare was charged
ury must be made a success, i ;;
commercial and

financial men generally
undercurrent of feeling was that

Doyle, O'Connor & Co. :
Dearborn

Transit ; Col is a
that has been set up
Jay N. Whipple, President of
to operate both the street car and
the Investment Bankers Associa¬
elevated lines under the unifica¬
tion
of
America, pledged "in¬
tion plan, which the commission
tensification" of the investment
rejected.. ■>■ ;■,, r■.
,
The; Chicago

yy

definite that

Pfd. Stock

135

asked for a rehear-"
- y ; '
'

ing on this matter.

The

by

Peoples Light & Power Co.
(Copy on

manent,, and

Finance

War

.

Henry

Morgenthau, Jr., Secre¬ ythe commission had not specific¬
ally
required the street car

tary of the Treasury, attended
New
York
meeting.
Also

the

followed
forum

fin

a-

on. war,

at

a nee

Henry

which

Morgenthau,

Secretary

Jr.,
of

the* Treas¬

ury,

Jay N.

discussed
for fu-.

Whipple

plans
ture

with

drives

/:{///;:

men,

the

securities

:{/{{{)/0-.

■;

The IBA has had a clear cut ;
at¬ {company to make correspond¬
ing improvements in service.
policy of complete
cooperation
tending were representatives of
; ADAMS & CO.
in the state.
<
the old War Savings Staff of Ill¬
{ "This unification, which makes with the Treasury in financing the '
231 South La Salle Street
Harold
W.
Swift, vice-chair¬ inois and representatives of the
war since before Pearl Habor, said
possible improvements in service,
Chicago, Illinois
man of the board of Swift & Co.
Victory Fund Committee for the was denied by the commission, Mr. Whipple who is a partner of
was named chairman of the new
Teletype CG 361
Phone State 0101
seventh (Chicago) federal -reserve while in the concurrent order en¬ the Chicago investment house of
committee in Illinois. Norman B. district. Herbert E. Gaston, Theo¬ tered-on the same' day a very
Bacon, Whipple & Co.
" fT
Collins was named executive vice dore R. Gamble, and George Buf- substantial * increase from' 7 'to 8
"In spite of the fact that more
chairman, and Renslow P. Sherer fington, assistant secretaries of the cents, was ordered as the perma¬
than 2,500 of our partners and
was appointed executive Manager.
Treasury, also were present.The nent rate of fare," the city's peti¬ associates are now in the armed
Previously, Mr. Swift was chair¬ meeting originally was scheduled tion ■ said. '
;."y .?■
services of our country, those of
man of the War Savings Staff in
to be held in Chicago, but it. was
us who are still left in the invest- ••
Illinois.
Mr. Collins was admin¬ switched to New York.
JOHN J. O'BRIEN
MUNICIPAL BONDS
ment banking field are fulfilling
istrator of this
group, and Mr.
Representatives of the old; War
the promise- of cooperation which ;
&C0.
4: Comments
continued to be
Sherer served as assistant to Mr.
Savings Staff of Illinois . at .'the
we pledged in our convention two heard last week on the currentCollins.
Members of
vy:
.y':.
meetings were Messrs. Swift, Col¬
days before our country entered
{strength of the municipal bond the
Chicago Stock Exchange
lins, -and Sherer. . C. S. Young,
war," he said. "I know I speak .
j
Points of Criticism
Chicago Board of Trade
j market,. which has shown a * for every member of our associa¬
president of the Federal/ Reserve
steady rise to higher ground for
New York Curb Exchange (Associate)
■;1
Persons aroused over the reBank of Chicago, and F. F.. Pattion in pledging not only the con¬
.nearly two months. Local deal¬
organization
of the war fitinuance but the intensification of
ton,
executive manager. , of the
ers
remarked that they had
'nancing set-up pointed out that
231 So. La Salle Street
Victory Fund Committee for the
these activities."
*
made
further
markups in
the Treasury in the December
seventh federal reserve, district,
Chicago
He added that the primary pur¬
prices on bonds on their lists.
(Victory Loan Drive asked for
represented the Victory Fund or¬
Tel. Central 5775
Tele. CG 1660
pose of the meeting had been to
[The consensus appeared to be
$9,000,000,009 in subscriptions
ganization.
-y' l'v-:'v ;.y.;4'';.-" yVy-'C
discuss and plan the part invest¬
]that { the T market as a whole
and
actually
obtained nearly
When announcement was made
ment bankers can take in future *
>probably did not move higher
[$13,000,000,000. Moreover, they
of his appointment, Mr. Swift said
war financing.
In addition, pre¬
1
[asserted that the Treasury asked
{last week, but The markups
the merger of the War Savings
liminary reports of plans for a '
■made did serve to indicate that
for $13,000,000,000 in the Second
Staff and the. Victory Fund or¬
study
of investment
banking's ;
jthe broad upward movement
War Loan Drive of April and
ganization was "a recognition of
part in the post-war were made at
:;had not been entirely arrested.
received $18,500,000,000.
Now,
.V'
■*•••.,'
•* '5 ' ' '■ 1
the value of both organizations
nderirrller*—Broken
Orvr-lhvt'ounter Sceurlllet
the meeting by committees work¬
The problem that many local
instead of the groups chiefly re¬
working as a., unit". ; He added
ing in the fields of industrial, rail-' 1
sponsible
for the success
of that he hoped to announce short¬ dealers are ' experiencing these
road, public utility and municipal |
these drives being given credit
<jays is one of maintaining the in¬
ly .the organization of the merged
finance. ;
•
for a job well done* the major
ventory position they would like.
groups for .the successful opera-;
These studies are being directed ;
role
in future
war
financing
Every time a block of bonds is
tlon.of war financing in Illinois;
\
drives is to be placed in other
sold from their lists, they experi¬ by the following men:
ence the
problem of how to re¬
hands.
The
federal
reserve
Percy M. Stewart, Kuhn, Loeb
TRACTION CASE, - ^
banks
spearheaded the
April
place This inventory.
Many of & Co.," New York, chairman of •
Chicago's ever-present trac-1 the .markups in prices that have the Industrial Securities Commit- ,
drive, and the Victory Fund or¬
tion case crept into the- lime¬
ganization played a prominent
occurred recently is the result of tee; Albert T. Armitage, Coffin &{.
role in both the December and
light again last week.; Prentiss '?
Burr, Boston, chairman of
the
dealers buying bonds from other
Strain Securities Company
Public
Service; Securities Com¬
M. Brown, head of the Office;
April money raising campaigns.
135 South La Salle St., Chicago, III.
jrfwvCGO 650-651
Tflephone-ANDovw 3700
of Price Administration, in
a< houses1 to build up their inven¬ mittee; John S. Loomis, Illinois ,
Under the reorganization, the
tories somewhat.
Yet, even at Company of Chicago, chairman of j
scathing rebuke of the Illinois
War
Finance
Committee
will
Commerce
Commission,
de¬ these higher quotations, the se¬ the Railroad Securities Commit¬
handle the sale of Treasury se¬
manded
that
the
regulating curities involvedJ have been;in tee; and II. Fred Hagemann, Jr., i
curities in war financing drives to
Boatmen's
National
Bank,
St. i
body rescind a recent order au-,
the public, and the federal re¬
demand.
thorizing a permanent fare of
Louis, chairman of the Municipal
serve banks /will confine their ef¬
'

..

.i

.

'•

;

••

1

'•*

* «••• fr»r. v

"

•

*.

>'

■ -

-

I

.

Tel« I

,

For Over
•

obtaining

subscriptions

forts

Century

to

from

%

commercial banks,

ment bond

govern¬

dealers, and insurance

.

SECURITIES

point appeared definite,
however. This was that financial
One

notwithstanding their feel¬
ings about the reorganization,

men,

INDUSTRIAL
Common

&

Preferred Stocks

would exert full efforts to
the third war loan

CASWELL 6- CO.
120

South La Salle Street
CHICAGO

Teletype CG 1122

Phone Central 5690




plete
success.
scheduled
to

drive

This
get

ment

make

a com¬

drive

under

shortly after the middle
tember.

on

the Chicago

is

way

of Sep¬

only com¬
financial men

About the

leading

would make, when

rumblings of

Surface

Securities

(street car) Lines.
He urged a
reversion to the previous rate,,
of 7 cents or, as an

companies.
REAL ESTATE

8 cents

a

fare of 7M>

the

At

same

ice

Chicago

filed

Transit

separate,

ilar

Chicago Rapid Transit
lines) Company.
The

to The

CHICAGO,

another

Financial Chronicle)

ILL.— George

Brunton, member
Board

sociated1

with

become as¬

Daniel F. Rice &

(elevated

Co,, 141 West

city also

members of the

Jackson

Boulevard,

New York

G.

South

B.

of the Chicago

of. Trade, has

petition requesting
Exchange.
state body to vacate its order

filed

the

A.
/(Special

Dead

t |

Treasurer of
Becker & Co., Inc., 120
La Salle St., Chicago, 111.,

Edward F. Curran,

City of

time, the

although sim¬
petitions, asking the commis¬
sion to set aside its order of May
3, which rejected a plan to unify
the Chicago Surface Lines and the

Co.

Edw. Curran

alternative,

cents.

Chicago and the

Corporation.

Stock

,

brief illness.
business ca¬
spent with A. G.

died,recently after a
Mr.
reer

Curran's entire
had been

Becker

& Co., whose

entered in 1906 as an
For

the

last

several

served as Treasurer.

employ he
office boy.
years

he

-

Volume

157

HornbEower 1Weeks
:

The

to

CHICAGO,

Specializing in

Central Elec.(S^Tel. Co.

D.

ILL.—Gordon

Fuller

.

.

Cons. Gas

200

of

Farwell,

South
the

-Stock

La

New

formerly

Hornblower

•

Salle

and

associated

&

Weeks

120 South La Salle Street

Tel. Randolph 6960

and

Kneeland

Tele. CG 878

&

Co.

'

Direct

INCORPORATED

Private

Wires

BOARD OF TRADE BUILDING

to-

JACKSON

141

WAIi. 8686 and Postal Telephone

BLVD.,

and

East

Chicago, Illinois

W.

Tel.

209 South La Salle Street

Teletype
Chicago 35

CHICAGO

many

York Stock Exchange
Chicago Stbck Exchange

Members New

V Telephone .
Dearborn 0500

Established 1922

with

for

CRUTTENDEN & CO.

C. L. Schmidt & Co.

Chicago

Mr. McCracken

,

North Shore Gas Co., Com.

Co.,

&

St., members

York

Exchanges.

was

•

Chapman

Corp'n

Utilities, Com.

Consolidated Dearborn Corp'n

Mfg. Co.

Common

with

Corp'n, Corl

Howard Aircraft

CHICAGO TRACTION SECURITIES

Common

McCracken has become associated

V

Globe American

Trading Interest in:

Chronicle)

Financial

2167

J

i

ftdd G. 0. Mracken
(Special

& FINANCIAL CHRONICLE

THE COMMERCIAL

Number' 4184

*

West Coasts

Tele.

CG

CHICAGO

640, 641 & 64'i

^

•years.

Harry Payne Elected Chairman Of Board Of
t
Governors Of Chicago Stock Exchange
CHICAGO, ILL.—Harry M. Payne, partner of Webster, Marsh &
Co., was elected Chairman of the Board of Governors of the Chicago

*

'

&

V;

Billi

n

g s

&

Sadler

The

Barrett

Wood

the

r

Board to serve

three

years;

A.

Elmer

Fred

Kurzka,

to

-

send

•

C.

A.

Allyn

Clarke,
&

E.

Co.;

Lt.

Bros., 208

term;

E.

ter

.j

■

Stock,

O'Brien &

J.

John

;

So. La Sallq

complete

prepared

Salle

Street, will send

for the

a

*

avail-,

are

*

.

■

■

:

Kneeland & Co., Board of Trade

Building,

late

American

Globe

on

ures

furnish

will

Listed and Unlisted

Straus Securities Co., 135 So. La

Salle Street, have prepared recent

analyses
Utilities

fig¬
Corp.

M.

Payne

Burd i

I

to

elected

was

o

h

k

c

n
,

R.

Jr;

Co.; Harry M. Payne; Richard
•W, Phillips;* Sampson Rogers, Jr.,

McMaster, Hutchinson & Co.; and
Arthur

Wood.

■

<

>

Skinner, of Hornblower
!'& Weeks, was elected Chairman
Paul B.

*

:cf the 1944 Nominating Commit¬
tee and
Messrs. Leo M. Apgar,

& Co.; William A.

Apgar, Daniels

Fuller, William A. Fuller & Co.;
John J. Griffin and Henry L. Vehwere

meyer

elected members of

the Committee.

,

V

,

r

!

'

:

Platin With Link, Gorman
(Special

Chronicle)

The Financial

to

CHICAGO, ILL.—Sven V. Pla¬

i

has

tin

Link,
South

j
10% In April

&

become

affiliated

with

Gorman & Co., Inc., 208
La
Salle St.
Mr. ,Platin

connected
with
Joseph F. Dixon & Co., Thompson
.Ross

and

Securities. Co.,

Demp¬

sey-Detmer & CO.

Officer Henry Jensen^
Corp.; Lt. Fred F.

Co.; Petty

Blair Securities

Withdraws As Partner

crease,

Hugh

Pvt.

Francoeur, Moran & Co.; Sgt. Ed.
Liening,
Valiquet
& Co.;
Sgt.;
Donald R. Muller, Harris, Upham
&

Co.; Lt. Paul M. Ohnemus,' En-

yart, Van Camp & Co.; Sgt. Ar¬

{

CHICAGO, ILL.—E. J. Mclnerney, sales manager of Fred W;
South La
Salle Street, members of the Chi¬
cago Stock Exchange, who was. on
leave of absence wth the Alien
&

Fairman

Property
the firm.

K

208

Co.,

Custodian, has rejoined
-

.

"

■

v

•.

■

With Negley, Jens & Rows
i

(Special

td

The

Financial Chronicle)

Alexander & Co.;Pvti
George R. Torrey, Kebbon, Mc-i
Cormick & Co.; Pvt. Richard Ji
Wallace; Remer, Mitchell & Reit-i
zel; Pvt. Thomas D. Walsh, Doyle;
O'Connor & Co.; Pvt. Raymond C;
Wauchop, Doyle, O'Connor & Co.;
Pvt. Chapin N. Wright, Fred E.
Busbey & Co.; Lt. Burnham Yates,
Weeden & Co.

:

; ;

.S

.

to

part

large

in

Building.
;

district
ties

Mr. Roe was formerly

agent' for United Securi¬

Company of Missouri.




de¬

10%

sharp

very

for

calls

Caswell

*

&

*

Co.,

South

120

La

Salle

Street, have prepared in¬
teresting memoranda on Ham¬

STOCKS

BONDS

-

mond Instrument Co. and Western

Grocer,

copies of which

obtained

the

from

firm

be

may
upon

Co.,

COMMODITIES

re¬

100

quest.
❖

quotations

Camp

&

Street, will furnish
Chicago and Suburb¬

on

Stocks

Bank

an

#

#

Van

DANIEL F. RICE & CO.

request.

on

Members
and

William

Fuller

A.

Chicago Bond Traders
To Hold Summer Outing
Traders

ILL.

The
Bond
Club
of
Chicago * an-;
that its annual golf and
outing will be held on

Co.,

&

Stock

York

New

Exchange

Chicago Board of Trade

209

141 W. Jackson

$26,630,000 in April, 39% less than
in

April

a year ago.

of the

For the first four months

total payments to policyhold¬

year
ers

&

-

Weeks/

Program

will send

Street,

request copies of a detailed

upon

memorandum

collateral

the

on

Blvd., Chicago

ing Railways.

in the Leading

Zippin
La

208

000 in the same

still

running ahead of a year ago, the

$93,508,000

of

payments

April

month

same

last

For

year.

year

to date, they are

than

last year.

**'

?■ April payments

the

Principal

Thomson & McKinnon's current

railroad

ments/l-:-r—
Annuity payments
values

Surrender

•

-

-

;

April. 1942
$92,409,000
,

31,709,000

,

23,404,000

7,710.000
14,016,000

7,943,000
13,694,000

26,630,000

43,415,000

Total

46,647,000

_.—l—-$205,253,000

Offices

In

Cities Throughout
Country

to
is

their

with

issue

Weekly

Bond Review, which devotes con¬

siderable

Rail

and

Plan

the

Wage

Chicago North Shore

Atchison

the

to

space

Retirement,

Bond

also

just issued

the

St.

Paul

Increases.

& Milwaukee R. R.: Co.

Plastic

the

special release
pointing

a

Comprehensive

industry,

tremendous

available

$227,512,000

on

analysis
request.

long-range

growth possibilities and discussing
Copies of
views

the
with

31,680,000

Our

the

leaders in this field.

Dividends to pol-

icyholders

reference
This

with

earnings.

correlated

out

endow-

Matured

Disability,,-.

statistics

ing

on

Institute were:
•
• ]
April. 1943
Death' benefits— $93,508,000

To

.

reported by the

1

Wires

Direct

9% greater Recognizing the growing public
interest in the subject, they have
] •
,

Central 7540

CG 530

Weekly Review has some interest¬

period of 1942.

Death benefit payments are

Salle Street,

CHICAGO

obtained

be

asking,

Brailsford & Co.

all of these re¬
free- for

any or

may

La

Street

Salle

CHICAGO

McKinnon's

&

Tel.

Statistical Library, 231 South La-^
Salle

S.

208

communicating

by

Thomson

St^te 9868

*

j.

CG 95

St., Chicago, 111.

.

Thomas R. Montgomery of

Glorej

SERVING INVESTMENT DEALERS

Forgan & Co.; Charles G. Scheuer

Co.; Charles Enyart

FOREIGN

of

Enyart, Van Camp.& Co;;. Gil¬
bert
E;
Egbert
of
McMaster,
.

Hutchinson & Co.
Officers of the,

club

SECURITIES

\ BANK

i CHICAGO—SUBURBAN

ILLINOIS

are:

Corporation, President; James

STOCKS

We

specialize exclusively in under¬

writing and distribution

Rich¬
ard W. Simmons of Lee Higginson

Incorporated

South La

135

*

*

♦

E. H. Rollins & Sons

South

furnish on
request late data on Foreign Se¬
curities, including bonds, stocks,
coupons, and scrip.
.
;
;
will

Street,

Over-Counter Securities

Hs

»>e

Company,

&

Salle

Issues

Trading Markets

Active

Maintain

We

'

593,000, compared with $852,893,-

Municipal

Industrial

$826,-

and beneficiaries were

Railroad

Utility

sinking fund 5% gold bonds
of the Chicago City and Connect¬

trust

Chairman of thef
assisted b#

is

/Committee,

of Valiquet &

Investment Securities
Public

being

these

values^

cash

policy

—

golf, baseball, tennis, : horseshoe
pitching and bridge.
■i
Peter J. yConlan, of Hornblowex*

La. Salle

South

#

comparing with $92,409,000 in the

clients.

Maintaining no retail de¬

partment

Bought

—

Sold

—

Quoted

Bought

-

Sold

-

Quoted

of securi¬

ties, providing investment dealers
with
attractive
issues for their

in

no

H/ Murphy of Cruttenden & Co.,

them

Vice President,"

of

way

our own, we

compete

with dealers, but serve

exclusively.

Inquiries

in¬

vited.

Loren A. Cochran

PEORIA, ILL.—Harold M» Roe of Glore, Forgan & Co., Secretary,
F.
Girard
associated with Neg- and
^Schoettler .--of
ley,
Jens
&
Rowe,
Jefferson Wayne Hummer & Co., Treasurer.

'

the

emergency

ZIPPIN & COMPANY

has become
1

The

the Institute reports, is due

decrease

thur Sacco,

nounces

;

in

Institute

the

by

10

Kearns, Doyle,
O'Connor & Co.; Lt. W. W. Leahy,
son;

Carney Howell

1 Iclnerney Rejoins Fairman

June

of,Life Insurance.

retired from
summer
partnership in McMaster Hutch¬
Saturday, June 19, at the'Mohawkj
inson; & Co., 105 South La Salle
Country Club (Bensenville, 111.)]
St., members of the Chicago Stock
Features of the
outing will be
Exchange, as of May 31.

t

ported

Johnson, Brown, Bennett & John¬

CHICAGO,

J.

CG 972

Common, and Foote Bros. Gear &
Sent on request.

cago;

previous

was

•

-

Kail &

a

.&

R.

Randolph 3686

and

Machine Corp.

West Monroe

Life InsEsr. Papers

Cooney, Fred W; Fairman

Preferred

Corp.,

Co.; Lt. J. Smith Ferebee, Chi¬
Total' payments
to American
Ensign John H. Fyfe, Harris,1 families by the life insurance com¬ South La Salle Street, will supply
upon request late information on
Co.; Richard H. Goodman, panies of
one-year term;
the 'country
totaled Durez Plastics &
Chemicals, Inc.
They succeed Messrs. Walter J. Cohu & Torrey, New York;. Lt. $205,253,000 in April, compared
»
♦
♦
V
Wm. A. Grigsby, John Nuveen &
with
Buhler; M. Ralph Cleary, Cleary
$227,512,000
in the same
Straus Securities Company, 135
Co.; Thomas E. Hosty, Sincere Co.; Pvt. Charles Hofer, Ernst & month of last year, it was re¬
Harry

and J

231 S. La Salle Si.

Palace Travel Coach

on

Enyart,

Down

*

•*

new

Stand¬

on

asking.

*

SECURITIES

Inc.

ways,

•;

MIDDLE WESTERN

re¬

on

quest late figures on Braniff Air¬

*

So. Ry. and

Exchange

Co., 231 So.

/'' Corp., Common, American States

*

comprehensive circular
ard Silica Corp. These

...

and

4s of .'91 of Ft. Dodge,

on new

able

Richard Cooley,

•

request/

;■//'

*

Des Moines &

W. Clarke,
Inc.;
Czarnecki, Harris,

John

James

Members
New York Slock

Chicago Slock Exchange

La

on

*

have

Street,
data

Joseph
& Co.;

Common;

* :

Preferred

same

i.Farroll

two- Thomson & McKinnon; Corp. Wal¬

a

year

Rallisch,

Hall

elect¬

was

ed

Bros; & Hutzler; Pvt.

RT 2

W. Fairman &
Co.

Chicago

Co.; Lt. K. S. Beall, killed
in line of duty, Cruttenden & Co.;
Lt. George Fabian Brewer, Lazard
Freres & Co.; Corp. Frank Buller,
Hickey & Co.; Sgt. James J. Callan, Riter & Co.; Major John W.

mem¬

of

bers

Co.

Power

ments

we r e

elected

of

Pvt. N. B. Baum, Selected Invest¬

T.

Edwin

and

G.

Corp.;

ginson

Club

Sgt. Richard J. Aldworth, Salo¬
mon

dell, Lee Hig-

Traders

in the armed forces:! V-

are

Corp.

Street, have prepared
recent figures on Peoples Light <£i

following members of the

Bond

d ;
Wen-'

a n- n a r

HICKS 6- PRICE

Common, Consolidated Gas Util¬
ities, Common, and North Shore
Gas Co., Common.

Salle

-v-"'

Co.;

Co.;

Doyle, O'Connor & Co., 135 Sot

Services k will

Members

La

So.

Engine

'W'*

,

Frede rick J.
S t

and Vinco
On request.

La

John

Co.;

W.

208

Aircraft

Jacobs

mon,

—

Ggo. Bond Traders Olsib

Arthur M. Betts, former Chair-

'man of the Board, Alfred L. Baker

Co.,

Street, have recent figures

Common, Leece-Neville Co., Com4

Exchange, at the Annual Election of the Exchange, succeeding Arthur M. Betts who has served five consecutive terms.
Joseph E. Dempsey, Dempsey-Detmer & Co.; F. Fletcher GarHock, F. S. Moseley & Co.; and Charles R. Perrigo, Hornblower &

Weeks were reelected members $
of the Board to serve three years.

Salle
on

Stock

.

Chicago Recommendations
Brailsford; &

;

Thirty
Traders

members * of
Club

armed services.

are

the" Bond

now
•

"

.

in
-

the
:

208

So.

La

Sails

Street

Enyart, Van Camp & Co., Inc.
100

CHICAGO
RANDOLPH 4696

West Monroe Street

ANDover

2424

FIMU ». CEUF CO.
120

CHICAGO
CG 965

South La Salle Street
Chicago

THE COMMERCIAL & FINANCIAL CHRONICLE

2168

fall

of

better

"Is

asks:

Granted

York

63 Wall Street, New

a

a

undoubtedly had quite
$18,000,000

jm net assets this year.
*

❖

Inves Intent Trusts §
Or Other

J

*

demented- farmer
his income and
then spent all the proceeds of a
mortgage to the full value of his
"Imagine

a

who first spent all

farm—all

the commercial banks, new

When the Government sells bonds to

facilities

little to do with the

increase

The ABC Of Something

se¬

to

buy hay for

giant

a

When the fire is out how

bonfire.

Irving Trust Com¬
offers an interesting possi¬
bility 'for investors according to
a
circular being distributed
by

Whyte

pany

(Continued from page 2164)
does not live up

Bank Stock Attractive
Stock of the

Savs

Keyst one

Funds

forms have

LOS ANGELES

JERSEY CITY

of

range

by

specialized marketing technique,
a
good deal of credit is due the
sponsor
for the effectiveness of
the tools developed to aid dealers
in merchandising the Funds. The
"Block iof
Capital" .forms, ■ the
"Security Selector" and the "Posi¬
tion"
and
"Transfer
Schedule"

Co.

INCORPORATED

Walter
•

the

that

offered

Custodian

Lord, Abbett &.
CHICAGO

'

curities

AMERICAN

Tomorrow's Markets

outlook

the

today than it was in June,

1940?"

Prospectus on request

Corp's

Keystone

France,

Keynotes

Thursday, June 10, 1943

to its prom¬

in the subsequent week
immediately to be consid¬
ered
dangerous.
This is
further heightened if one set
of averages does not confirm
the bullish indication given
by the other average.
Up to the time this was
written there was nothing in
ises
is

Laird, Bissell & Meeds, 120 Broad¬
way, New York City, members of
the New York Stock Exchange.
Copies of this circular may be had
the firm upon request.

lrom

we

painfully

are

aware

that

Brown

Prentiss

under

and

Davis the

Chester

OPA and

Administration has be¬

Food

joke. Price ceilings are
meaningless. The line is being
held at one end and being
averages or the market as a
whole to make me change the blithely broken at the other.
position I took in last week's Legislation, such as the Con¬
column. The danger signs I nolly bill, to outlaw strikes
the

of

action

either

come a

the

of

will not settle the problem.
pay the interest on his called attention to last week
sold.
Labor troubles are a natural
(That's easy.) The Federal debt stands today at approximately $135 mortgage? Only a great increase are not only still there but
created—$1 of new deposits for every $1 of bonds

deposits

are

billion.

The

this

holds about $54 billion of
deposits

commercial banking system

That's

the

main

commercial bank

why

reason

$85 billion now as compared with only $22 billion back
(Are you still with me?)y
Suppose the Federal debt goes
about

are

in

debt.

will

1917:

to

billion

continue

the

to

(and

bonds

take

sop

billion

more,

up

RAILROAD

boost

total

a

lot

including money in circulation,
savings bank deposits and a mere
$85 billion of Federal debt now
held by the "public."
But why

Prospectus

GROUP#

the

much
after

to

true

situation

with

companies
is
than
net earnings

many

better

would

reserves

can,

general

Request

Incorporated
yor3

held

are

Dividend

in

portfolio reported : total
earnings of $438,469,811 last

after taxes but before special
$116,427,315 or nearly
27% of this amount was allocated
special reserve funds.
'

'■

s(s

indicate.

1

*

Securities & Research

National

Timing

Investment

Corp.'s

dis¬

the trend of industrial pro¬

cusses

for armaments.
On
it makes a deter¬

sums

effort,

peak

be near in point of
might be a year or

may

it

volume,

off in point of time. The ser¬
vice continues to forecast the in¬

more

wiSIBBS®
":®^3E8

termediate

trend

stock

of

prices

being upward.

as

'i'1;'

•

Hugh

m

W.

New

Co.'s

&

Long

Letter

York

draws

heavily

on

New York newspaper talent. The
lead

article, "Wall Streeters In
Washington," is by John G. For¬
rest, Financial Editor of the New
Prospectus and

additional

data obtainable from your own

investment

dealer,

CALVIN BULLOCK

Established. 1894
One

Wall

Street, New

Another feature is a

York Times.

Wall

"Public Returns To
Street" by Ralph Hender-

;hot,

from

or

World-Telegram

of

reprint

Editor.

York

'

■

Financial

''

so

In

the Long
Company is the mailing of a com¬
plete engineering report of the

nation's

the

4

erty.
a-

producing
! -v'

rises

"Price

will

prop¬

moderate

be

winning the war on

are

we

the

battlefronts, but

period which will bring the sub¬
stantial
price advances."—From
Distributors
Group's folder
on
"INFLATION—What It is ... How
It Affects You

.

.

.

What You Can

the

it

Do About It."

Investment

Company

has

.

*

in

another

strike

Reports

But this

*

asset

Net

20.04%

gained

value per share

over

October 31,

1942 as

compared with a gain of 18.77%
the

for

Industrial

Dow-Jones

period.

Keystone Custodian Fund
"B2"

Series

reported total net assets of

.

Bond Investment

today

1940

about

before

the

assets

with

over

Trust reports

compared
$47,000 last

approximately

Send fw

Prospectus

B-l, 2, 3 and 4 IN bonds

Republic

K-l, 2 in Preferred Stocks

Investors

S-l, 2, 3, 4 in Common Stocks

Fund, Inc.

Distributing Agent

home

kneed

authorized

be obtained

dealers,

W. R. BULL MANAGEMENT CO. Int.

COURT

efforts to check in¬

shortly be made.
will be I don't

What

they

know.

But the market

own

ST., BOSTON

in

its

way

*

17, 1943.

Group Securities, Inc.—The fol¬

lowing dividends payable June 30
to

stock of record June

Agricultural

.05

-—-

.06

.06

.

—

.03

.02

.13
.13

Fully

Administ'd-

.11

Gen'l

Bond

Shrs.

,11

.02

Machinery

.08

—

Indus.

—Walter

Exchange

Whyte

views

expressed in this
article do not necessarily at any
tThe

time

coincide

Chronicle.

those of

with

They

are

those

of

.08
.08

.05

the author only.]

.04

.01
—

.06

.12

STREET

.08
.07

.06

WALL

NEW YORK CITY

.08

.07
.07

LAMBORN & CO.
99

—

Mining
Petroleum

Railroad
Steel

—

Utilities

.08

—

.05

.03
—
—

.06

__

.04

—

SUGAR

.07

.06
03

———

Equip.—

.07
.04

Railroad

.03

Place, New York

Union

Trusteed

A

dividend

8c

on

of 18c

Funds,
on

Exports—Imports—Futures

Inc.—

UCSA and

UCSB payable June 19,1943.

DIgby 4-2727

the

presented as

.15
.10
.06

.03

——

Thursday.

.15

.03

——,03
■

.10

.08

.04

_

Total

,01''
.06

.07

....—,14

Equipment.

16, 1943.

Extra
.05

Regular

Class

More next

payable June

25 to stock of record June

PARKER CORPORATION

ONE

more

flation will

or
40

The

that

will

I feel

front

Eaton & Howard Balanced Fund
—A dividend of 20c

Tobacco
may

administration

the

*

Merchandising

Series




industry.

Investing Co.-,— '.03
Low Priced—' .04

Prospectus

hardly think, however,
despite its ineptitude

that

Dividends

Elec.

follows:

STREET, BOSTON, MASS.

coal

faced

major

a

just one strike.
sporadic out¬

was

were

week

Aviation

Series

ture. I

act If you can't you'll be left
high, but not so dry, scream¬
policy.
I
ing at "administrative mud¬
We all remember the Holddling." So remember the stops
ihe-Line order from FDR. Yet
given you last week and don't
start thinking "it can't hap¬
September when the trust became
&n open-end company.
pen to you."

our

Food

The Keystone Corp. of Boston

are

harsh fact is that labor unrest,

$1,000,000

Qpdtpq

50 CONGRESS

were

we

Automobile

from

are.

which

Trust Funds

Prospectus may be obtained from
local investment dealer or

clusions

that

strike,

the

in

on

market

was

week

Last

by

Building
Chemical

your

sided. But I doubt if my con¬

get out.
The market itself
will give the signals. If you're
hampers the war ef¬
Dividend Shares had net assets
able to read them you will
of $43,682,288 as of April 30, 1943. fort, is a direct reflection of
Investment Company

Participation in
as

uncertainty. Perhaps
reasoning may be lop¬

my

published
a
laws.
But even the threat of
showing the nine and one-quarter the
coal miners and • other
such a change will drive the
year
record of the Investment strikers
a
sabotaging dirty
Company
of America
through
market down.
bunch of so-and-sos. But this
March 31, 1943, In that period the
v;
; •; '
.is
;
i« V;
sj«
total gain for the fund was 205.9% outraged
feeling no matter
Obviously no one will ring
as compared wfth an average gain
how justified doesn't recog¬
a bell and warn you when to
of 69.1% for 24 other companies.
nize
the true picture. The

utors

Custodian Funds

investing their capital

what is behind the current

market

will act accordingly.
I recognize the possibility that
bursts
of labor trouble in
governmental edicts do not
Distrib¬ other plants as well. It is all
leaflet well and good to call Lewis, permanently change economic

technical

*

where

see

permit this to occur.

There

,

Certificates of

we

losing it at home.

during the war—it is the post-war

on
April
30,
1943
research $8,516,012
the steel in¬ equivalent to $25.10 per share.
This compares with net assets of
dustry outlook to all affiliated
dealers.
It is hard to see how $5,816,848, or $21.45 per share a
dealers can
respond other than year earlier. As of April 30, 1943
unrealized appreciation of securi¬
favorably to such friendly, helpful
ties owned amounted to $1,184,147.
service.
well-known

With

discussing the above I've
dispassionate and

tried to be

are

relationship to the value

sonable
of

prices

large,

Average in the same

Another innovation by

lirm, Kerr & Co.,

Keystone

act.

as now

duction and concludes that while
the

are stewing.
caught between
WPB regulations and dissatis¬
fied labor is doing as good a

Business

not

xeserves.

This is because of the heavy alio-

and other bodies

then
get this post war world and
permitted, encouraged, forced to
Inflation, a wild eyed sort,
Special Reserves.
For go higher. It is the only way that give more thought to what is
ten companies whose ihe debt can be brought into rea¬ going around you today. Yes, may change the entire pic¬

year

to

result of the ferment the OPA

ever

problem.

note

contrary

looms

net

or

in this coun¬
There is a good deal of talk
try, to keep prices from rising
while government is the big buy¬ around
about the post war
er.
But after the war spending is world and how business will
over
and the critical problem is
adjust itself to it.
My sug¬
no
longer victory but solvency,
che
emphasis is reversed.
Be¬ gestion is that, so far as the
cause
interest on the war debt market is concerned, you for¬

Shares'

Investment Company Briefs

that

on

63 wall street—new

stocks

Calvin Bullock's Bulletin points

respect

the

DISTRIBUTORS

all fussed up with figures?
cations to
(All I want to know is who's go¬
example,
ing to have the first billion-dollar

out

Inc.

gathering force.
why these are
based is difficult to explain.
does, Perhaps it's the war; perhaps
level it's
something else. But what¬
what

On

it is the time is here to job as can be expected but it
too must eventually feel the
only stop buying stocks
carefully, Govern¬
does not try to increase the but stop thinking about what grinding power of the mill¬
stones.
level while it is spending to do with what you have and
*
*
*

mined

get

investment company!)

ment

A Class of Group Securities,

to the story,

more

the

same

price
great

de¬

be

to

seem

and
price
when it is faced with essentially
the

SHARES

posits to $131 billion, or about
$1,000 for every man, woman and
child
in
the
country.
(Brother,
that ain't hay!)
There's

Government

But

"But

as
heretofore,
approximately $46
or
40% of the in

That will

price of farms and of his
products can save him from
bankruptcy. The farmer is power¬
less to cause such a price increase.

about

ratio

same

they'll
crease.

in

the

in

farm

increase

that's being
conservative), where will bank
deposits be?
Well, if the banks
$250

he

Volume 157

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4184

by the Exchange.

NYSE To Continue I %
Packard Head Sees Ways To Speed
Transition For Post-War Economy Net Commission Charge
(Continued from first page)"
mass-production
of
Rolls- ciently planned production • lines
Royce aircraft engines and Pack¬ will aid this result.'
"To speed employment and pro¬
ard marine engines.

"Obviously, there will be plenty
legal 'paper work' before we
can start re-arranging the plants
and
setting
up
the
machines
needed for motor car production.
t

this 'paper work' is postponed

ployment will be correspondingly
delayed. Therefore, " Government
to provide this legal ma¬
chinery are needed now. ;
1 • "The second major problem is
that of mapping out our post-war
plant lay-outs and installing the
required production
equipment.
This is a tremendous job in itself,
particularly with Packard, because
our
plants were so completely
torn up for war production. How¬
ever,, we estimate that rearrange¬
ment can be rushed through in as
short a time as it will be possible
steps

Bacon Elected Gov.
Of NY Stock

election

.

.

is

faced

find it

a

whole

harder

lot

and

a

lot

longer to get out of war pro¬
duction than it was to get into it,"

Mr. Christopher commented.
Re-conversion Harder Than
'

Conversion
"When

war

declared, pri¬

was

enterprise lost no time in
converting
to
war
production,
leaving /.the ; legal'paper work'
between Government and indus¬
vate

maximum

as

a

as

Mr.

mit the Exchange to take advan¬

to

next

volume

an¬

its

election.

The Exchange's announcement

ment

St.

44

Paul's

years

by

School

was

grad¬

University in
student at Harvard,

Harvard

While

1921.

a

the

tablish

the

change

on

enlisted

and

with

served

in

position.

"Thus, the total of all borrow¬
ings on collateral as of the close
of

His letter

vav

on

have

been

The tabulation

as

made public

at the time

appeared

be equipped to
responsibilities in the fu¬

ture."

April

30, 1943,
reported as
$727,083,456 instead of $569,614,299."
; \ \

the Exchange may
meet its

business

should

by the Stock Exchange
in these columns May

20, page 1866.

"

?

-;;s

.•

finances
a

of

the

sound basis

Ex¬

and

circular

a

to

being

distributed

Butler-Huff

&

Co;

of

Butler-Huff

&

Co.

upon

Reuss, One Wall St.,'New York

by

City,' members of the New York
provide
a
fairer
allocation
of
210 West Seventh St., Los Ange¬ Stock Exchange.. Copies of the
charges in relation to the use by
"Following 3 years employment members of the facilities of the les, Calif. Copies of this circular study, giving the author's reasons
with the Farmers' Loan and Trust Exchange.
At that time (when which contains a history of the for his present preference for
Co., and several months associa¬ volume of trading was averaging company and interesting compar¬ "MOP" securities may be had
less than 400,000 shares a day) it
tion, in 1927, with Edward B.
ative figures may be had from upon request from McLaughlin,
was felt that no substantial addi¬
Smith &

California,

University.

Co., he formed his own

firm."

V

1 ■'

tional

••

giaaaaaaaaaaaaaaaaaaaaaaaaa aaaaaaaaaa ■•••■•••■•a

should

revenue

be

sought

Baird & Reuss.

request.

i

aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa*aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

that

try to follow along later. But

cannot be reversed with
The 'paper work' will
precede the changeover
back to peace production or we
will have to wait too long for
process

equal ease.

have

to

THIS

IS

UNDER

CIRCUMSTANCES

NO

BE

TO

CONSTRUED

OR AS A SOLICITATION

BUY,

ONLY

MADE

OF THIS

OFFERING

AN

AS

STOCK

SALE. OR AS AN

FOR

OFFER IS

OFFER TO BUY. ANY OF SUCH STOCK. THE

OF AN

OF THE

MEANS

BY

PROSPECTUS.

* /V'/

!'*

'■

.'V''

i

.

OFFER TP*
_

I

authority to move a single Gov¬
ernment-owned machine out of
the plants.
"We may

..

.

*.

•

find

•

difficulties

our

greater at Packard than those of
some other plants because of our
need to replace large
our

to

and

machines

numbers of

tools released

ard

was

companies.

the first company

Pack¬
to sup¬

ply a complete list of its available
equipment to WPB and, as a re¬
sult, we were drawn upon heavily
by
other manufacturers
who
couldn't get vital equipment soon
enough from other

Gulf Oil Corporation

sources."

CAPITAL STOCK

Responsibility To Dealers

>

SHARES

764.500

help break production bottle¬

necks of other

*

Remembered

,

'

'I
.

1 '

'J

.

\

.

a

-

'

' '

'

'

J

planning,
the company is particularly con¬
scious of its obligations to the
many
loyal Packard dealers as
well as to Packard employees, Mr.
Christopher declared. It is in the
interest of dealers as well as em¬
In all of its post-war

'

,

'

*

'

.

'

'

'

"

'

S

'

'

(PAR VALUE $25)

between war
production be made as
possible, he said.

ployees that the gap
and peace
narrow

as

PRICE $47.50 A SHARE
■

-

"Because

our

the manufacture

conversion

if

■

from

of motor cars to

engines was so complete, our
re-conversion will be like starting
from scratch. Therefore, the Pack¬
war

ard post-war
is

planning committee

COPIES

working toward a totally new

peace-time
ment.

We

IN

production
will

arrange¬
incorporate not

OF THE PROSPECTUS

WHICH THE UNDERSIGNED
,

'

MAY

BE OBTAINED

FROM

THE

UNDERSIGNED ONLY

IS LEGALLY AUTHORIZE^ TO ACT AS A DEALER

IN

AND IN WHICH SUCH PROSPECTUS MAY LEGALLY BE DISTRIBUTED.

IN

STATES

SECURITIES
.

!

only the best methods known to
the
automobile industry at the

of car production in
1942 but many new ideas

stoppage

early
which
mass

we have developed in the
production of aircraft and

MELLON

marine engines.

Post-War Production Line
More Efficient

To Be

"We expect that our motor car
production
will be
one-third
higher than it was during our pre¬
vious peak year. Better utiliza¬
•

tion of floor space

and more effi-




.

..

stated, in part:

U. S. Army.
He subsequently at¬
tended Magdalen College, Oxford

he

.

strengthen

given ; as

was

"St. Pauls"

ago

and

increase

recent

trading to

' securities

$219,709,310 when it should have
been $362,043,810 and the amount'
of borrowings on all other col-,
lateral was given as $349,904,989
when it should have been $365,039,646.
■ ; b,-

reasonably in order that

sources

Aprilv

vs. "MOPS"
"As you are aware, the Ex¬
change has operated at substantial Insurance Stock Attractive
A most interesting comparative
deficits during recent years.
The
study of ! the1 relative merits of
charge on net commissions was I; The current situation in Home "St. Pauls" and "MOPS" has been
Insurance
Company
offers
at¬
instituted a year ago as part of
compiled by W. Wendell Reuss,
a broad program designed to
es¬ tractive possibilities, according to partner in McLaughlin, Baird &

in Short
Hills, N. J., Mr. Bacon attended
"Born

the
of

financial

further

further said:

j

of

tage

Bacon will serve

Governor until the

nual

I

Coleman

of the close of business

30, 1943, the amount of such bor-:
rowings on United States Govern-\

Exchange

A.

John

of

Chairman.

uated

post-war situation
squarely now we may

ap¬

|

_

1 "Unless the

Schram, President of the
New York Stock. Exchange, issued
"There appears to be a general the
following statement on June
opinion among the membership 4
regarding a Correction in the
that the
Exchange should now money
borrowings
report
for
take advantage of the recent in¬
April 30:
crease
in volume of trading to
"The New York Stock Exchange
strengthen its financial position.
regrets that, in its tabulation of
Such a program would be in the
the total amount of borrowings on
best interest of the Exchange.-'
collateral by its member firms,

amendment

an

j

"Emil

-

to get materials to
,

June 3

on

Correction In Report >
On NYSE Borrowings

charges approx¬
imately offset, at the.then volume
of trading, receipts from the new
charge on commissions.

the

.Exchange

Reductions in

other

.

until* after the war, post-war em¬

produce auto¬
mobiles."
'■
.7
I /.v.;
Mr.
Christopher valso pointed
put
that similar
re-conversion
problems face Packard's 350 sub¬
contractors
on
war
production
work.
Here
again, Government
steps to provide the necessary
legal machinery are necessary, he
declared. *,
'
//
*
\
■

proved

Stock

and

continue, at
1% rate, the present
duction, Packard intends to man¬
ufacture its streamlined Packard charge
on
net" commissions re¬
Clipper model J If we did not re¬ tained by/members and member
sume with these models, produc-; firms" on transactions effected 6n
tion and employment would be' 'the Exchange but to remove the
;-"During recent years the enTdelayed for months during the de¬ restrictions on total receipts.V The
phasis of those responsible for the
amendment has been
signing and building of new dies proposed
administration of the Exchange
and tools for brand-new models." submitted to the Exchange mem¬
has necessarily been on reduction
bership; for; balloting.
This sec¬ of
expenses,
the
lowering
of
tion now provides that when re¬
charges to members and the con¬
ceipts from this source during any servation of
the cash resources of
year have exceeded $500,000 the
the Exchange. The Exchange ex¬
rate of charge for the rest of the
pects to continue its policy of eco¬
year shall be cut in half and when
nomy and to hold expenses to the
receipts during any year have ex¬ minimum level
Francis M. Bacon,- III, a mem¬
necessary to pro¬
ceeded $750,000 the charge shall
ber of the New York Stock Ex¬
vide adequate facilities and ser¬
be discontinued entirely during
vices for the investing public. We
change and a partner of Bacon,
the remainder of the year.
Stevenson & Co. since; Sept.
are
now
in a period, however,
1,
In a letter to the members, Emil
when we should seek to do more
1927, was elected a member of
the Board of Governors of the Ex¬ Schram/ President
of the Ex¬ than merely conserve the Ex¬
change on June 3 to fill the va¬ change, explained that, removing change's
existing
resouces;
we
the restrictions is designed to per¬ should
cancy in the Board created by the
plan to increase these re¬

of

If

York.

dues

to the Constitution to
a

.

:

of

The Board of Governors

New

for

2169

PITTSBURGH, JUNE 7,

1943

SECURITIES

CORPORATION

j

THE COMMERCIAL & FINANCIAL CHRONICLE

2170

yourselves to the

Laval Mobilizes More

thorities.

1942

Laval

ordered

June

on

and

5

told

London

advices

-Press,

June

on

5,

stated:

duce

convention between

"Those

also

said:

of

on

the

'Trench

volunteers

at

in

we

order

avoid

to

arbitrariness.

They will all go without excep¬
tion.,

from

I

tell

all

this

not to

withdraw

obligation.

Present

'

,

entirely untrue. On the
Hitler was cordial and

German

It

is

fortress, that

a

everywhere in the air and
Far

East

Interesting Speculation

people forget that Eu¬

rope now

and

that

Russia

is invaded."

war

sea

is

The

and

$3

preference

stock

herself

of

interesting - speculation
in
the
public utility field, according to

"Those who think that in order

a

detailed

memorandum

discuss¬

Indeed, it shows
of

Broadway, New York City, mem¬

of North Africa, and he cried out
against the black market, blam¬
ing it for French food difficul¬

lieve

Laval declared "I bear with you

ties.

,

"I

know

to be free their women and chil¬

that

only too many
people expect salvation from Eng¬

our

On

are

mistaken.

a profound upset
souls that any one can be¬

this.

I

prefer

my

bers of the New York Stock Ex¬

policy"

change and other leading ex¬
changes. Copies of this memoran¬

post-war

prospects, Laval
said:
"If
the
Anglo-Americans
achieve victory on the European
Continent, the Anglo-Saxon world
would
begin to measure itself

dum which discusses the situation
in

some

detail may be had upon

request from Ira Haupt & Co.

ByStamps

The attention of member firms

United Corporation appears as an

.

dren must be killed

Of NY Stock Transfer
Taxes

Italian

and

Changes In Payment

Soviet state."

re¬

the burden of defeat" in the loss

understanding."

the

(Russia)
demand
equal their sacrifice.
I
have decided to call up the 1942
class without exception for work
that

"

few

a

ing the current situation affect¬
ing the corporation, prepared by
S. Fink of Ira Haupt & Co., Ill

contrary

front

.eastern

a

gent measures.

the Paris radio, the
Vichy government

fight would not be in doubt.
would
then
engulf
Europe. Europe would then be a
Bolshevism

divisions.

"This is

Speaking
Chief

who tries
Two hun¬

and France
between
March 1 and July 1.
Many have
said that during my recent trip to
Germany I had to agree to strin¬

\

,

one

Germany

from

which

any

call-up.

that

have not borne out that hope.
took the Allies six month to

dred thousand workers must go as

the

French people that 200,000 more
workers must go to Germany, said
Associated

the

with the Soviets and the results of

America and Russia," he
"They rejoice at recent mili¬
tary events, but military events

the result of

military class mobilized for

work

avoid

to

France's

be

will

measures

land,

said.

au¬

...--•'V'

"Rigorous
taken against

Workers For Germany
Pierre

calling-up

,'•'•'•1 Thursday, June 10, 1943

of the New York Stock

directed

was

tion

taken

Exchange

June 4 to the

on

the

on

ac¬

elimination

of

stamps in payment of Federal and
New York State transfer taxes.
The

following

is

mailed to members

quin,

circular

a

by Max Jac-

Jr., Assistant Secretary of
Exchange:

the Stock

"The New York Stock Exchange
and the Association of Stock Ex¬

change

Firms

have

years

for

number

of

endeavoring

been

to

a

induce the Federal and State tax¬

ing authorities to permit the
ment of taxes due

fers

and

covered

pay¬

sales, trans¬

on

deliveries

of

securities,

by their respective reg¬

ulations, other than by the phys¬
ical attachment of stamps as pres¬
ently required.

TO

HIT

<EM

H.A.R.D.I.R

"In

far

so

New

as

Iransfer taxes

York

State

concerned, this
required specific changes in the
law.
These changes were enacted
by the New York State legislature
are

and approved by Governor Dewey
at the last session, and the New

York

State
in

now

Tax

the

Commission

is

of preparing
appropriate regulations. It is ex¬
pected that these regulations will
be

issued

that

process

in

these

sufficient

taxes

time

so

be

paid
through the Stock Clearing Cor¬
poration on or about July 1, 1943.
"The

attention

directed

to

may

of

the

amendments

members

fact

in

the

that

New

is

the
York

State law provide for the payment
such taxes only in respect of

of

transactions

effected

tered securities

within

the

on

regis¬

a

Exchange located

State

of

New

York.

Conversely, it will not permit of
:such payment of taxes in
respect
of
over-the-counter transactions

in listed securities.; Members

are

urged to regulate their purchases
of.

New

York

State

Transfer

stamps so as to have on hand after
July. 1, 1943, only such stamps as
are

necessary to cover
counter transactions.

over-the-

X' "With

regard to Federal taxes,
Regulations 71 covering this mat-,
ter does not, in its present
form,
permit of
of

ment

method for the pay¬
taxes suitable for

a

such

in that, although it:
a clear¬
ing house, the work entailed in
providing and maintaining the re¬
quired records is prohibitive from
our

purposes

'permits payment through

practical standpoint. After many
conferences, we are confident that

a

our

proposals for amending Regu¬
71 will be approved and
regulation will be amended

lation

The year 1943 promises to be the grimmest, hardest
this country has
faced. Every effort, and
year

ever

dollar of national income hot absolutely needed
existence, should go into war work and War Bonds.

every

for

In the
weapon

Pay Roll Savings Plan, America finds a potent
for the winning of the war—and one of the

soundest guarantees of the preservation of the Amer¬
ican way of life!

Today about 30,000,000
plants,
a

are

wage earners,

buying War Bonds

billion dollars

a

enoughI For the

at the rate of

in 175;000

nearly half

month. Great

more

as this sum
is, it is not
dollars made available now, the

fewer the lives laid down

on

the

bloody roads

to Berlin

and Tokio!

You've

undoubtedly got a Pay Roll Savings Plan in
plant. But how long is it since you last checked
up on its progress? If it now shows only about 10% of the
gross payroll going into War Bonds, it needs jacking up!
your own

This is

tention and continual stimulation to get

a

continuing effort—and it needs continual




at¬

You

well afford to

can

fullest results.

said
in

give this matter

your

close

personal attention! The actual case histories of thou¬
sands of plants prove that the successful
working out of
a
Pay Roll Savings Plan gives labor and management a
common interest that almost
inevitably results in better
mutual understanding and better labor relations.
Minor misunderstandings

and

the

that

future.

near

these

It

amendments

is

hoped
be

may

accomplished by
an

the issuance of
appropriate Treasury Depart¬
during in sufficient time to

ment

enable

us

to proceed in this

nection

also,

1943.

Members

on

con¬

about July 1,

or

are

similarly

urged to regulate their purchases
of Federal stamps
accordingly."

disputes become
fewer. Production usually increases, and company spirit
soars. And it goes without saying that workers with sub¬

NYSE Members To Vote

stantial savings

On

are

usually far

wage

more

satisfied and

more

dependable.

Amending Gratuities

An amendment to the Constitu¬

And one thing more, these War Bonds are not only
going to help win the war, they are also going to do much
to close the dangerous inflationary gap, and
help prevent

tion

post-war depression. The time and effort you

Board of Governors

in

now

put in

selling War Bonds and teaching your workers to save,
rather than to spend, will be richly repaid many times
over—now

and when the

war

is

won.

of the

New York Stock Ex¬

change with respect to gratuities
payable to adopted children was
approved
has

by

the

bership for

Exchange's

on

been submitted

to

June 3 and

the

balloting.

mem¬

The

pro¬

posed amendment to Section 4 of
Article XVI provides that legally

adopted children of

a

member of

the Exchange would share in the
gratuities payable on his death to
the

same

dren.

extent

as

actual

chil¬

The purpose of this amend¬

ment, which

was

suggested by the

Trustees of the Gratuity Fund, is
to

give adopted children the same
standing with respect to gratuity
payments as they now have under
the laws of the State of New York
with

respect

to

the

estate

parent who dies without

a

of

will.

a

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4184

157

the death of the

original owner or
depositor.'" :
A ruling similar to that of Sur¬
rogate Foley was contained in an

Production Costs

Up Since Beginning of YearFurther Increase Expected: Conference Board
Industrial production costs

International

have risen rather generally since the

patch

first of this year, and the upward trend is expected by the majority
to continue during the next six months, according to returns to the
National Industrial Conference Board which has just completed a

of the current situation in

survey

trial

Board

"Three-quarters of the report¬
ing companies recorded an in¬
crease

during

months.

the

Costs

past
four
relatively

held

steady for about one-seventh, par¬
ticularly those in the food and
metal

products

executive
in costs.

the

was

duction

cost

of

about

One

decline

',■\'!0::/•/;■

"Labor
half

industries.

in 12 reports a

problem

those

a

greatest

pro¬

for

quarter

found

while

raw

ma¬

terials their chief cost worry. La¬
bor
productivity and efficiency

have directly affected wage costs
in the majority of reporting com¬

panies which state that declining
efficiency
has
been
the
rule.

ing millions of dollars,
the

case

steady in about 45%

particularly

cerns,

are

holding

of the

those

con¬

in

the

heavy machinery, metal products
and
foundry
industries.
The
paper, food and chemical indus¬
tries

prominent

are

three-tenths
in costs of

the
increases

among

reporting

raw

materials.

Among

the

causes
stated are
shortages
higher prices, transportation
difficulties and additional freight
charges, subcontracting at higher

and

ap¬

A

has

of

estate

and

beneficiary

under

rights

these

of

a

bonds

costs

that

panies have been operating under
'cost-plus' contracts or their unit
costs have been lowered as

of

a

duction.
'

-

"Costs

pected

party named

upon

that

he

should

Mader

from

Inc.

on

violated

the

charges that it
provisions of

Claude

ploye of

a

that

and

Westfall,

an

own

concern

later not the case.
There is hardly a salesman who hasn't met this
particular brand of self styled investor; nor is there a salesman who

other

One

Instead

salesman

of

exasperating individual—

make that fellow

ACT

WHEN

fellows" and he claims he gets away with

helpful

at

presenting

times
a

to

REVERSE

THE

a

an

as

.

:

em¬

information

short period of time.

cus¬

working
a

one of these cases by telling
security to offer but that he ex¬
a very attractive situation in a

on

The second call back

the matter—then he made

on

wee

a

a

a

week later he

call

and released

,

-

substantial

a

of

production

go

are

by

higher

.

The not

commitment for

a
Very attractive investment that
mighty pleased he owns today.
strange part of the story is that of course this

very

^e

was

practically anesthetized into making the purchase.

or as a

solicitation of
means

an

offer to buy

any

of such

V;

of the Prospectus.

re¬

ex¬

$15,517,700

three-fifths of those reporting. A
very

small percentage of the co-

Armour and Company of Delaware

operators anticipate that produc¬
tion costs will hold steady or de¬
cline

during the second and third

quarters of 1943.

7% Cumulative Income Debentures

"The paper,

food and chemical
prominent among
the - three-tenths
reporting
in¬
creases in costs of raw materials.
industries

(Subordinated)

are

Dated

Due April 1, 1978

April 1, 1943

the
causes
stated
are
shortages and higher prices, trans¬

Among

portation difficulties and addition¬
al freight charges, subcontracting
at

prices, rationing, and
expensive grades
substitutes. Except for certain
higher

the

of

use

of

OFFERING PRICE

more

110% AND ACCRUED INTEREST

all industries an¬
increase in raw ma¬

food companies,

ticipate an

terial costs this year.

Food Rationing In France

Copies of the Prospectus

Reported Most Stringent

in this issue

as may

may

any

State from only such dealers participating
laws

of such State.

young

Kuhn, Loeb & Co.

ing of food conditions in France,
reported that there was "plenty
of starvation" there.
"If

the

people

are

lucky

en¬

ough," she stated, "they are able
to get about 250
grams of fat
weekly and 120 grams of meat, in¬
cluding bone.
That is about the
size of a big hamburger.
They
are

be obtained in

legally offer these Debentures under the securities

Frenchwoman per¬
mitted by the German government
to leave Vichy, France, to join her
fiance in the United States, speak¬
A

allowed

200

grams

but there is no more

concentrated

France."




Corporation

Harriman

igginson
June 7,1943.

Ripley & Co.
-

Incorporated

''

'

'

Smith, Barney & Co.
'

'

.

Goldman, Sachs & Co.

BIyth & Co., Inc.

of bread

daily, equal to about four slices,
and just a few vegetables.
The
children are allowed some milk,
milk in

The First Boston

ion

of

brilliant investor has told several of his friends at the
country club
about the "smart buy HE MADE in the rails"—when all the
while

The offer is made only by

about

still

bit

now

larger volume of pro¬
'
'
:; V

to

a

designed to "whet Mr. Hard To Get's" appetite
Finally he sprung a really attractive railroad re¬

bit.

this investor is

He had been connected with

Debentures.

Z

was

was

organization (that he had known about all the time) and it resulted
in

E.

offering of these Debentures for sale

■

PRO¬

security and its good points—

This announcement appears as a matter of record only and is under no circumstances to be construed

r

HE

know handled

we

some

information that

Paine, Webber since 1918.

this rather

met

over

its

cases

pected to have

McDonough, trader
in. unlisted securities for, Paine,
Webber, Jackson & Curtis, Chi¬
cago, 111., died suddenly on May
28.

whenever he

his prospect that he didn't have

McDonough Dead
:

said

In

justWilliam

not

MAKE IT HARD TO GET!

he

'./•>/

tomers.

of the procrastinating
doing business at the

case

originally suggested by the salesman he is allowed to make the
even at higher prices.
Many times the security recom¬
originally at its first price was a real attractive purchase—

CEDURE.

em¬

the

and its

same

so and as a result
usually waits until the
price of the security you have offered has advanced sharply in price.
By this time the situation is usually too high to be an attractive
purchase but in as much as he now insists upon doing something that

it.

larger securities house

in double dealing against

ploye's

just the

do

out of these "think it

Act, and that Mr.

broker-dealers

aided

in

Sometimes salesmen have taken the frontal attack when
they
have bumped up against these cases.
Usually this doesn't work so
well.
We do know of one salesman who
actually can "bawl the hell"

fraud

Securities

sold

investment

member of

expulsion

be

About one-tenth

they are not being
'squeezed/ but most of these com¬

sult

a

example. Let's take the
always has an excuse for

investor who
time

to

,;;'V

an

pass

have narrowed.

report

was

have
'

Here is

who

everything else in this world

way

accomplished and securities

are even some

mended

as no

dealings with customers and fel¬
low

The latter is the ordinary
of
bank
account
which

the

alone,

That's the

manner.

was

di¬

Archer had "over-reached" in his

beneficiary under a trust agree¬
ment, or a beneficiary of a 'Totten

to

business.

made of Mr.

was

its

Dealers,

a

passes

into

apparently

somewhat

form

companies have been un¬
on any increase in
and
their
profit margins

of Kansas

shoved.

"what I'd give for a formula to
SHOULD"!

the

upon

costs this year.

"Most

was

to be

hasn't

had

analogous to the rights of a bene¬
ficiary under an insurance policy,

able Jo

Co.

at Mr. Archer

ordered

did

prices, rationing, and the use of
more expensive grades of substi¬
tutes.
Except for
certain food
companies, all industries antici¬
pate an increase in raw material

Trust.'

Mader,

recently formed

re-entry

beneficiary

is

G.

led, others cajoled, others enticed and there

K.

National Association of Securities

"In his decision the Court held:
'The

serious investment mistakes just because some salesman
didn't have enough sales
ability to convince them to do otherwise.
No matter how attractive an investment
may be, no one will
benefit (either salesman or investor) unless someone
goes out and
tells investors in such a
way as to convince them that they should
take advantage of the
opportunity.
Even when it is necessary to
use what some might call "tricks in the trade of
selling" in order
to reach a desirable objective it should be done.
Some

The SEC had revoked registra¬
tion of W. K. Archer & Co. and

of the purchaser.
"

upon

making

Rrcher, Mader & Co.

the
purchase of any war bonds which
will pass to another on the death
;

There may be those who deplore the fact the
sales psychology
must be used in order to convince
many investors that they should
do what is often best for their own
interests. But it nevertheless is
more
than often times the case that
many investors insist

is

registration
William

to

&

except that he

"Surrogate Foley discussed at
length the contractual rights con¬
the

action

mention

ficiary.

on

Registration

the ground that Mr.

on

his

rected

belong to the surviving bene¬

ferred

the

Mader

tify

a

decedent's

of

The

purchaser and payable on

the

not

Sold—They Do Not Sell Themselves

There is a wise old saying that
goes "its not WHAT you know
but what the other fellow thinks
you know that counts."
Apply this
to the securities business and half
your battle is won.

have

Archer's past record did not jus¬

beneficiary becomes
the property of the beneficiary on
the death of the purchaser.
"A previous decision made at
Special Term held that any such
bonds were assets of the purchaser
or

to

Securities Must Be

people have

denied

City, Mo.,

bond registered in the name

the

issued

were

and', Edward

Archer,

Wil¬

"In substance it holds that any
of

bonds

broker-dealer1;
been

members

given

was

estate

the

Archer

J. Deyo, who died Dec. 25,
1940, the "Times" reported as fol¬
lows regarding the decision:

his death to

"Raw material costs

of the

opinion also made
applicable to cases

Denied SEC

liam

war

week, occasional work
stoppages, and the greater cost of
supervision.

bonds"

court

decision

The Securities Salesman's Comer

to be

Stating that the ruling, involv¬

in

for

co-owners.

in the New York "Times" of June

5.

provision

a

beneficiary designated in

where

to be clarified, it was noted

shortages, an increase in
absenteeism, turnover, wages, the
48-hour

the

City on June 5 by
Surrogate James A. Foley, the
beneficial status of persons named

Among the labor factors increas¬
ing production costs are man¬
power

the

to

decision handed down

"beneficiary war

is

the bonds.

New York

on

Savings

decedent's estate

a

there

The

pears

S.

payment of their redemption price

Beneficiary War Bonds

over

reporting,

of

part

where

Persons Named On
a

that U.

and War Bonds cannot be consid¬

ered

Under

as

ruled

has

son

Clarifies Status Of

in

dis¬

"Federal Judge Albert W. John¬

9, the Con-$-

stated:

Service

Street Journal" of May 22:

>

Under date of June

News

Scranton, Pa., which
follows in the "Wall

from

appeared

number of representative indus¬

a

concerns,

ference

2171

Lehman Brothers

.

i.

THE COMMERCIAL & FINANCIAL

2172

We

Dominion of Canada Gtd.
..

Issued by Grand Trunk Pac.

3%
v

Bonds due
*

Rwy, Co*

1 January

1962

:

(Non-callable)

Price

98% and interest

they1 make goods
difficulties of rationing.
Finallythey are; habit forming, -Once used they tend tb spread-and

Incorporated

<

14 Wall Street,
Bell System

enlarge,

New York

dropji

;

;

to

buyers, and add to the4i

and they are;hard to<£—
*—.
The Bank in its comments ( duction and

"Within limits, and particularly
where they are confined to high:

jcost- producers

Canadian Securities
By BUUCE
The

,

new

Cover

designed. ' to

or

temporary and "abnormal in¬
in costs, subsidies may be

creases

WILLIAMS'

least

the

programming

Canadian-American agreement for joint

costly and most effec¬
of accomplishing a

method

tive

.

necessary

'<7- 7'1''

'■

/

'

v"

Canadian

distribution of these

objective.

Where sep¬

•

Crops Late

Crops are late

—

1—-■

throughout the

due to the!
wheat seed-'
ing has been virtually completed
try less than an. over-all price in¬ in the Prairie Provinces with
the,
crease, which is the alternative,
sowing of coarse grains well ad¬
would cost.'
Where subsidies are
vanced, according to the, current"
restricted to the higher-cost pro¬
crop report of the Bank of Mon-?
duction, this claim is manifestly treal, issued June 4. Germination
correct.
For example, the OPA
is satisfactory but crops are late
calculates that if market prices
and warm weather is now re-!
of copper, lead and zinc were al¬
quired to stimulate development.
and that subsidies Cost

Canada

backward season, and

the coun¬

of exports to Latin America provides a 'further indication, of the
arate study of each problem es¬
growing importance of Canada in the field of international com¬ tablishes the desirability of sub¬ lowed to advance to equal the
merce, and exemplifies the attempts which are being made to solve
sidies, their cost may be added premium prices paid on a limited
the problem of the division of world trade, at least in part, by inter¬
to the other costs of the war and part of the production, , the cost
national cooperation instead of competition.
This latest form of
accepted as inevitable under the to consumers of the three metals
collaboration follows closely uponfwould be raised by $400 millions,
circumstances.
It
the decision of the Joint Economic ing these bonds in Canada.
"But the more extensive, and whereas the premium payments
Committees of the two countries would appear that the long ex¬
elaborate a subsidy program the total only $20 millions. This highto' explore the possibilities of eco¬ pected exhaustion of this source
cost production is clearly needed,
The greater is the opportunity for mis¬
nomic expansion in the million- of supply is now in sight.
takes and the more costly the mis¬ and there is not much argument
mile
area
of
northern British 4%'s of 1955, the 4%'s of 1956
takes will be; also the greater is as to the appropriateness of gov¬
and 1957 now yield only about
Columbia, the North West Territhe Inflationary effect. * As sub¬ ernment payments in the circum¬
3%%.
However, the 5's of July
tories, the Yukon and Alaska.
stances. 7*77
/
*
1969 callable in 1 year still remain sidies widen and tend to cover all
In the Canadian bond market
on about a 2%
basis to call date. producers, and their costs mount,
"Even subsidies paid to all pro¬
the most interesting recent item
argument
that ' they
save
It is possible that before long a the
ducers may cost the public less
of news was probably the an¬
commercial
bank
demand
will people more as consumers than than advances in market prices,
nouncement
by
Mr.
Garson,
cost - them
as
taxpayers for when
arise for this bond when the call¬ they
prices, are held;down
Premier of Manitoba, of the
able
term
is within
one
year. naturally becomes weaker. ; The at
the
source
of
production
sale in this country of $1,185,advocates of solving the stabiliza¬
When compared with 1 year U.S.
pyramiding of markups through
000 5-year,refunding 2%% de¬
tion problem by payment of sub¬
Certificates
of Indebtedness
on
the distribution system is avoided.
bentures callable in 3 years.
A
about a %% basis, the July 1944 sidies running up to $3, $4 or $5 In
general, subsidies restore an
significant feature of these
Canadian Nationals, with the pos¬ billions, which are figures seen in element of flexibility to a "frozen"
bonds is that, contrary to the
the press, should give heed to the
sibility of earning, the 5% coupon
price system by providing means
usual
custom of issuing pro¬
for a considerable period," appear danger of creating a mechanism to stimulate
production of essen¬
vincial bonds with payment op¬
which is not only inflationary but
Very ■ attractive, 77:7;;"7-7.:.:
tial commodities (and correspond¬
tional in U.S. or Canadian cur¬
has potentialities for evil in other
There is a further possibility
ingly
discourage production of
rency,
on
this occasion pay¬
that the Dominion 2%'s-of Jan. 15, ways."
non-essentials) without upsetting
ment is in U.S. dollars
only.
Regarding the foods subsidy price levels or the stabilization
1944 and the 2yds of August 15,
This naturally suggests that the
1945-43
might be paid off to¬ program' the Bank also stated in program." They facilitate enforce¬
province has in mind the possi¬
7 7
'"rv
ment of price ceiling regulations.
gether at the maturity of the part: 7/
bility that before the bonds are
;
"Food distributors welcome any
These are strong, practical, argu¬
2%'s.
It must be remembered
paid,
the
U.S.-Canadian ex¬
modification of the OPA's habit of
that Canada has recently acquired
ments in their favor. :7'77--7
change will be at parity, with a
quite a -considerable surplus of appeasing both the farmer and the
consequent saving of the 10%
"On the other hand, reliance
U.S. dollars.
Thus it would be consumer by cutting the distribu¬
premium on U.S. currency*,
tor's margin, but they are suspi¬ upon a greatly extended use of
possible in liquidating these ob¬
of the subsidy, proposal. subsidies to solve all the problems
A certain revival of interest in ligations to- reduce to a • consid¬ cious
find
it
improvised and of price stabilization would be
Canadian internal securities re¬ erable extent this seemingly em¬ They
cently may have resulted from barrassing surplus and to reduce vague, and they do not know what largely deceptive. If the costs of
observation of this point.
Since the outstanding external debt at the eventual attitude of Congress maintaining production and dis¬
tribution are not borne by con¬
the great activity in this section the same* time.
Should this ma¬ will be. They know that the roll
sumers through higher prices they
of the market some months ago,
terialize, the C.N.R. July's would back will compel them to take
this market had been almost at a be the only short-term Dominion markdowns on inventory. Whole¬ must be borne by them either
standstill with a slight easing of obligations available.
salers ..and, retailers fear that pro¬ through taxes or through further
y 7-7 ^
inflation
of
government
debt.
cessors will get the subsidy, and
prices.
Recent sales have taken
The Canadian
Chamber of
Thus
subsidies
conceal
a
real
place on the basis of 10% dis¬ Commerce
has; just
presented they will get the roll back. Basic¬
count.
In some quarters it is felt
ally, business men do not like sub¬ price rise, which becomes more
some excellent proposals in con¬
that following the firmness of the
important as the subsidies grow.
nection with posfrWar reconstruc¬ sidies; they do""not want the quesCanadian dollar in the freeonarton whether they are to make a Arguments that they cost the pub¬
tion among which i$ one which
lic less4han market price advan¬
ket over a long period, and with
could very well" be
dealt with profit or loss to be determined by ces
the present trend towards, parity,,
may overlook the cost of ad¬
the decision of a government of¬
without further delay." That~is the
it is conceivable that an invest¬
ficial as to a subsidy rate, and ministration and of the mistakes
complete overhaul of-the" Can¬
that administrators make.
Sub¬
ment demand might arise in the
adian tax structure. There are at theyTear the regulations that may
U.S. for the internal bonds of the
sidy programs are not automatic
present quite a number of un- go with subsidies.
in Their* operation and impersonal
Dominion.
v
>
"The initial cost. ot JtyJ. subsi¬
settled /Jax:> situations involving
m-theif judgment, as are prices
The market for external'bonds
'U.S. individuals and corporations dies on meats, butter and coffee
in free markets.
They must be
has
continued to
maintain its which have
is estimated at upward of $300
mostly occurred be¬
administered by overhead author¬
firm tone with prices steadily ad¬
cause
the complicated Canadian million^a ,jear.
The funds will
vancing in all sections. Manitoba revenue laws can easily give rise be
provided by the Defense Supbonds, following the almost sur¬ to misunderstanding and dispute. lies Corporation, a subsidiary of
prisingly low coupon on the new
the Reconstruction Finance Cor¬
It is to be deplored that the
refunding issue, have improved
poration . Th| RFC, However, can¬
good will created in this coun¬
sharply. The 4%'s of 1956 at 105
not finance a program of great
•
a
try by other official depart¬
now yield only a shade over 4%.
magnitude and if that is intended
ments of the Canadian Govern¬
remarkable has
'

of

Dominion

commodities must be maintained,

also says:

Teletype NY 1-920

■'

By keeping prices to consumers down

attractive

more

discrimina¬

for

abuses,

ture."

f

tribution,.

Wood, Gundy & Co.

judgment

tion, and for another entering'
wedge for detailed government
control of business and agricul¬

National City Bank Declares f

-

in

errors

political

In citing objections to subsidies; .the National City Bank-of New
York in its June "Monthly Letter" observes that "subsidies naturally
remove incentive, for
efficiency and low posUproductibn and dis¬

i

only
but ,f6r

The way is open not

cisions.for

Subsidies

A Real Price Rise is Concealed In

;

Thursday, June 10, 1943

ity, and at every point along the
line tHe authority must make de¬

Of Inflation

And Removing Incentive For Efficiency

I

-i

•

j

Subsidies Seen Increasing Danger

offer, subject:

i

CHRONICLE

Early sown crops show a

healthy,

growth.

even

report continued:
7
Province
of Quebec t

The bank's

the

"In

and

seeding of grain is under way

planting of field and root crops!
is general in most districts,
The!
season is from two to three weeks;
later than normal. Hay lands and'
pastures show good growth.
trees
are
blossoming well
of

a

and;

show promise'
good crop. Moisture is ample
warm weather is required to
plants

strawberry
and

Fruit,

-

growth.
;77 7r?
operations on theland have been greatly curtailed!
stimulate

Ontario

"In

.

*

coop

rainful ' and

excessive

by

weather.

The acreage seeded,

.

spring cereal grains is expected:
materially and sub-;

to

to be reduced

stitute

crops

roots and,
planted,*
in good condition/ J
of

corn

be V

will

buckwheat
Pastures are

"In British Columbia below-av¬

of tree fruits are in-4
generally. Soft fruits and;
vegetables are making progress,'
but the season is backward, owing'
to lack of sufficient warmth."
crops

erage

dicated

.

-v t

■

■«■

....

-

N. Y. Analysts To

.

,

Subjects of discussion

meetings

luncheon

ing
New

of

Society

York

Analysts, Inc., will be:
June 11—Netherlands

Meet

/

at com-;

the

of

Security
in Eur-!

and in the East Indies from
the Standpoint of Investments—
Dr.
Edward Von Saher, Chair¬
man of the Netherlands Circle.
'

ope

of

14—Rate

June

Return

on

Public Utilities—discussion group
Merrill Lynch,

77

Beane.

Ralph Sterling,
Pierce, Fenner &

by E.

led

be

to

■

■

•

'

-7

SEC
and the
Street—Robert H. O'Brien, mem-,
ber of the SEC.
Preceding Mr.,
16—The

June

.

speech, Benjamin Gra¬
will render a report to the

O'Brien's
ham

membership from the Committee

,

on

Standards.

All meetings

Broad

will be held at 56

St., New York, at 12:30 p.m.

.

•

been the re¬
cent improvement in these bonds
that long-term Manitobas now re¬
turn less than comparable bonds
of the Province of New Bruns¬

Foreign

previously suggested,

reform.

So

As

wick.

however,
this situation
soon
be corrected with

ment,

as,

Exchange

towards subsidies has
been

failure fo

make a long overdue
Mr. Ilsley, Minister of

splendid

work

in

his

difficult

creasing

has

definitely underpriced.
Saskatchewans still con¬
tinue to attract popular attention
with the 4*/2's of 1960 quoted 9192: British Columbias continue in
steady demand with the 5's of
1954 now 110% bid^
u
"
In
the
Dominion" guaranteed

reputation by presenting before

for

4y4%

still

appear

section,

a

wonderful

further

Parliament

a

to

bill

highly critical.

"While the

department of the Government,

that

recognition of the fact
New Brunswick 5's of 1959,
example, at 108%. to* yield

;

q
:

'.h V

in general

It has re¬

I'll

save

it

jected all proposals for huge ap¬
propriations to finance elaborate
subsidy schemes.

Finance, who has already done

the in¬

•

The attitude of Congress

review.

Control

Board, should be offset through

should

Congressional

it will come under

example^— the

for

•

new

is the

program

important application of the
enhancer his" subsidy.pfinblble yet made in this
most

opportunity

to

country,., subsidies
an
estimated
$700

simplify

amounting to
millions

an¬

paid for,
include
payments ^to cover "extra" trans¬
Ideal Cement Interesting
portation costs, caused by the war,
The cil'frenV situation in Ideal on sugar," gasoline and coal; pre-*
Cement Company offers interest¬ miums
paid for production-of
Canadian National Rail¬ ing possibilities, with a promising high-cost copper, lead and zinc;

way

bonds move

and

steadily,.ahead,

i

and amend Canadian tax laws.

post-war outlook, according to

as

nually are-already being
various purposes, f These

a

anticipated, are -.slowly memorandum issued by Amos C.
Sudler & Co., First National Bank
coming more into line with the
direct obligations of the Dom-. Building, Denver, Colo. Copies of
this
memorandum
may
be ob¬
jnion.
Canadian dealers are now
tained from the firm upon rehaying the unusual experience of
encountering" difficulty in secur- quest,




-

producers of vege¬
canning; and
cheese production,
crushing and processing,

payments

*

to

,

tables .and fruits for
subsidies

oilseed
and
-

some

"The

on

other

commodities.

justification offered for the

subsidies is that the necessary pro-

•»c

,

*

•

■

60% grain neutral spirit^. Blended whiskey,

86 proof. Schenley Distillers Corporation, N. Y. C.

,i..1,*i.'«

Volume

Number 4184

157

Fire Stocks

throughout Scotland

8 West Smithfield,

Descriptive circular

Head of the Department of Economics,
University of Chattanooga, Chattanooga, Tennessee

OFFICES:

Bishopsgate, E. C. 2

49

The

Morgenthau

and

Keynes

Plans

simply

are

Bought—Sold—Quoted

proposals

much

achieved

Burlington Gardens, W. I

effectively in a simple, direct, frank, and
and to accomplish other purposes some of
not to be fully understood by the public.
more

straightforward,

64 New Bond Street, W. I

which

are

way

'v%

Associated Banks:

Bank,

AAA's, WPA's Food Stamp Plans,
etc.) on the one hand, and no plan

Ltd.

Glyn Mills & Co.

the

at all for international

Deacon's

course,

Australia and New Zealand

in

other

the

on

"Isolationism."

tional

NEW SOUTH WALES

Reserve

Fund

Reserve

Liability of Prop.

ALFRED

SIR

Office:

£150,939,354

George Street, SYDNEY

870

the oldest

largest bank in Australasia.
branches

all

in

of

States

With

over

Australia,

in

New Zealand,

Fiji, Papua and New Guinea,

and

it

London,

offers

the

complete

most

apd efficient banking servjee to investors,
traders

travellers

and

interested

in

these

countries.

The United States

in

engage

international

OFFICES:

Threadneedle
47

Street, E.

arrangements

throughout

with

U.

the

S.

can

co¬

by simply tak¬

war

currencies

their

or

adjust

and

bring about
world-wide exchange stabilization.

C.

Berkeley Square, W. 1

Agency

the

operation for exchange stabiliza¬

other countries could tie
LONDON

29

upon

Goldbergian

ing the lead. This means, first of
all, setting our own house in order,
checking domestic inflation, deter¬
mining definitively the par or gold
content of the dollar, restoring a
fully functioning gold standard,
taking the lead in reducing tariffs
and other trade barriers, thereby
giving the world a sound inter¬
national standard money to which

Manager

The Bank of New South Wales Is
and

Rube

tion after the

30th

DAVIDSON, K.B.E.,

General

Head

v

dependent

of

structures.
best

interna¬

by the United

meeting post-war prob¬

not

creation

8,780,000
£23>710>°00

*■

Aggregate
Assets
Sept., 1941

is

lems

£8,780,000
6,150,000

serious

cooperation

States in

1817)

Capital

and

Sincere

BANK OF

cooperation

can foresee
rise of what will

a

It

will

be

necessary

Banks
A.

for

some¬

to make loans to many coun-

one

tries

in

order

assist

to

them

in

restoring sound monetary systems
and effecting exchange stabiliza¬

NATIONAL BANK

tion, and it will be
someone

to

necessary

loans

make

to

for

many

world

to

furnish

of the loans?

all

Government

and

Colony

Kenya
Head

the

to

Office:

26, Bishopsgate,

We

Subscribed

Paid-Up

Capital—..£4,000,000
Capital
£2,000,000

Reserve

then,

erect

an

elaborate

structure which may tend to cam¬

ouflage these operations and de¬
ceive the American people into
thinking that the funds loaned to
-countries

various

for
exchange
reconstruction and

stabilization,
rehabilitation

coming from
some "international organization"
rather than mainly from their own
are

pockets?
If we are to do most
of the lending for all of these
worthy purposes, why not do it

simply, directly, and in an honest
and straightforward manner, ac¬
companying each loan with condi¬
tions to insure its productive use

by the borrowing country?
The

lending by

a

nation of its

funds to another country for

own

agreed-upon

(budget

purposes

balancing, exchange stabilization,
etc.) may be called imperialism
or
some
other disparaging word
by New Dealers. Apparently what
they would prefer would be an
international organization in which
the

conducts

debtor

countries

would

have

,

also undertaken

<

?

,

'

•

been

Stock

Exchange
CITY

Telephone: BArclay 7-8500
Teletype—NY 1-1248-49

4-252S

(L.

A.

Oibbs, Manager Trading Department

Bank and Insurance Siocks
This Week

Insurance Stocks

—

By E. A. VAN DEUSEN

with the Securities

Company of New Haven recently filed

Exchange Commission registration covering 50 000
shares of capital stock, $10
par, to be offered to stockholders.
This
is the fiist time in
many years that an important old-line fire insur¬
ance company has made such an
offering. Present capitalization of
the company comprises
200,000 shares of $10 par stock, while its net
surplus as of December 31, 1942$———
,
,

was

$4,000,000.

of the

new

The offering price

issue has not yet been

announced, but assuming it at
$30, or three times par, their capi¬

INSURANCE &

tal

BANK STOCKS

would

net

ing

become

$2,500,000 and

surplus $5,000,000* represent¬
25% increase in capitaliza¬

tion.

In addition to

the net

OF

making similar offerings and
increasing
their
capitalization.

share

policy
whereby a large
annual net earnings

many years

of

its

fore, to review the operations and

retained

in

the

busi¬

pare

this with the aggregate fig¬

ures

of

a

sentative

includes
In

group

of thirty

repre¬

fire

companies, which
Security of New Haven.

1925

Security's capital was
$1,500,000, surplus funds $2,486,000 and total capital funds $3,986,000.
This capitalization sup¬
ported a premium volume of $5,687,000 and unearned premium

(P. C. T.)

m.

Orders

solicited.

CALIFORNIA

West 7th St., Los Angeles

New

York

-

Chicago

TELETYPE L.

1942

-

San

Francisco

<•

Seattle

.

of its conservative dividend

to 5 p.

m.

Service

Brokers.

PRIVATE WIRES

to why

Security should need additional
capital funds, particularly in view
over

a.

&

invited.

Compared

-

Booklet

Butler-Huff & Co.
210

ies

their

asking ourselves this question for some months

Inquiries

speculation as to the possi¬
bility of other insurance compan¬

as

and

Dealers

Trading daily 7

some

It may be of interest, there¬

terms.

to

ber 31, 1942 amounting to
$764,868.
This
action
maturally
causes

The question also arises

Bulletin

Quoted

-

Reviewed

-

Special

plus of $4,000,000 the company has
voluntary reserves as of Decem¬

Sold

-

Analyzed

sur¬

ness.

own

Bought

a

been

A.

279

-

L.

A.

280

was

$1,571,000, greater than
27.7 %, and unearned
premium
reserves
$102,000
or
in

1925,

or

1.9% greater.
it would not

ity's

>

From these figures

that Secur¬
capitalization is in¬
Certainly the proposed
appear

present

adequate.
25%

capital increase will place
company in position to write
substantially larger volume of

the
a

business.
It

is

now

of interest

to

review

aggregate figures for the group of

thirty representative companies.
In

1925

their aggregate capital
$117,800,000,000,
surplus
$240,148,000 and, thus, total capi¬
company field, the question can^
tal funds $357,948,000.
This capi¬
be narrowed down still further to ' factory performance under peace
talization, .supported a premium
reserves of $5,310,000, or $1.43 and
a consideration of the position of
conditions.PJ-v.
('Ps' %,v.'
volume of $416,190,000 :and un¬
$1.33 per dollar per capital funds
Unusual discrimination should
operating
company
c o m m o n
In 1928 capital was earned premium reserves of $368,be exercised in selecting utility respectively.
stocks.
■'
increased
to
$2,000,000, surplus, 615,000, or $1.16 and $1.03 per
equities under present conditions.
We
believe
that
as
a
group
funds to $4,375,000 and thus total dollar of capital funds, respectiveIn particular it appears to us that
these securities have considerable
capital funds to $6,375,000.
Pre¬ ly. In 1942, aggregate capital was
the recent speculative splurge in
attraction for the patient investor
mium volume in 1928 was $6,277,- $135,047,000, surplus $598,546,000
low priced holding company com¬
who is looking for a better than
000 and unearned premium re¬ and total capital funds $733,593,mon stocks has been more in the
000. Premium volume in 1942 was
average
current
return,
some
serves, $6,007,000, or $.98 and $.94
realm of fancy than demonstrable
chance of a modest capital appre¬
per
dollar of capital funds re¬ $501,521,000 and unearned pre¬
fact.—From the Portfolio Review
ciation and a reasonably secure
spectively.There has been no mium reserves $384,557,000, repre¬
of the George Putnam Fund of
position in the postwar period.
increase in capital since 1928, and senting $0.68 and $0.52 per dollar
Boston.
■:/• v'• .;V\ *;V'
This conclusion rests very largely
It
surplus funds have increased but of capital funds, respectively.
on
these three beliefs, none of
slightly to $4,765,000 as of Decem¬ will be noted that as a group,
which we can prove: (1) belief Continental Air Lines
ber 31, 1942, providing total capi¬ capital funds have expanded dur¬
that the political trend is in a
tal funds of $6,765,000.
Premium ing the eighteen year period from
conservative direction and hence Post-War Outlook Bright
volume in 1942 was $7,258,000 and $357,948,000 to $733,593,000, an in¬
Continental Air Lines offer in¬ unearned
favorable to privately owned util¬
premium reserves $5,- crease of $375,645,000 or 104.9%.
ities; (2) belief that utility earn¬ teresting possibilities, according 412,000, or $1.07 and $.80 per dol¬ Premium volume in 1942 was $85,ings and dividends are pretty well to a circular just issued by Ward lar of capital funds, respectively. 331,000
greater,
approximately
stabilized around present levels & Co., 120 Broadway, New York Over the eighteen year period 20%, than in 1925, and unearned
for the duration and that the post¬
City, which states that although capital funds have increased from premium reserves $15,942,000 or

however, for here the price structure is historically( low.
out the many "special situations" that exist today in the

Executorships

and

have

York

Bell

have

It is, of course, obvious that the better grade utility operating
company bonds and preferred stocks are, with few exceptions, selling
at fancy prices.
The equity side of the picture is quite different,

of

description
business

every

and exchange

banking

DIgby

New

BROADWAY, NEW YORK

NEW YORK

the power to force a creditor na¬
tion to furnish them its funds upon

past.

Fund——£2,200,000

Bank

Members

120

is the United States.

Why,

ire Uiiliiies Undervalued?

Uganda

in

Trusteeships

Telephone

Laird, Bissell & Meeds

Exchange

exchanges

financial situation of the company
from the year 1925, and to com¬

India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar

The

Slock

of

In

London, E. C.
Branches

York

leading

I WALL ST.

practically

The answer,

of INDIA, LIMITED
Bankers

New

other

The Securities Insurance

hand, I

future

the

be termed

(ESTABLISHED

and

it

£98,263,226

Williams

Memoers

it turns out, as I am afraid*will, that the Administration's countries for their reconstruction
Just who is
policy will be to force the Amer¬ and rehabilitation.
ican
public to choose between going to make these loans? Who,
such plans (plus unsoundly con¬ indeed,
is in position to make
ceived
plans
for
international them, and who is expected by all

ASSETS

request

,,

cfLo'lLJG^cW^C).

—

If

TOTAL

on

for

erecting a grandiose and elaborate mechanism for accomplishing a
desirable objective (post-war exchange stabilization) which can be

E. C.I

Charing Cross, S. W. /

Paid-Up

Irving Trust Co.

By CLYDE WILLIAM PHELPS

I

3

Hartford

Keynes Stabilization Plans

OFFICE—Edinburgh

LONDON

2173

The Morgenthau And

Incorporated by Royal Charter 1727

Branches

«|NMi

THE COMMERCIAL & FINANCIAL CHRONICLE

Royal Bank of Scotland
HEAD

i

Leaving
holding

was

.

NATIONAL

BANK

of EGYPT
■■■■'

Head

Commercial
"

•

FiJLLY

PAID

RESERVE

''

and

7

No.

Cairo

1

':

'

,

,

1'

CAPITAL

.

£3,000,000

,

FUND

LONDON
6

Cairo

Office
Register

1

King

,

.

,

.

AGENCY

Street, E.

William
all

Branches

in

principal

Towns

EGYPT

and

£3,000,000

the

C.

the

in

SUDAN

Bendix, Luitweiler To
Admit

outlook is for

some

moderate

Philip G. Volpe will acquire the
New York Stock Exchange mem¬

of

Leeds

Johnson

as

the New York Stock Exchange.

a

belief

the

that, given increased con¬
in the political situation
the maintenance of dividends,

ciation

expecting big appre¬
the
better
grade

from

operating company common stocks
we
are
not overly im¬

The current situations in Strom-

because

berg-Carlson,
Federal
S c r e w
Works, Bartgis Brothers, and Mil¬

pressed
growth

with
the
long
term
prospects of the utility

ler Tool & Manufacturing Co. of¬

field

far

as

concerned.

major factor in building

area

as

the stockholder is

We prefer to approach

interesting




4.3% greater.

Copies
circular, describing the
situation in detail, may be had
upon request from Ward & Co.
of

report

to
on

the

the

issuance

of

significance

Special
Master
Taylor's
reor¬
ganization plan for the Seaboard
Air
Line, which will be ready

shortly after the hearings in Nor¬
folk

on

June 16, L. H. Rothchild &

Per $

Per $

Security Ins. Co.—,
Thirty Companies

—

$3,986,000

357,948,000

of C. F.

Amount

$5,310,000

$1.43
1,16

$5,687,000
416,190,000

Amount

368,615,000

.

of C. F.

$1.33 '
1.03

1942

6,765,000
733,593,000
Increase,

of

Unearned Premium Res.

Premium Volume

Capital Funds

Security Ins. Co
Thirty Companies

their

the above

figures are recapitulated below.

1925

this

Prior

\

For the sake of clarity

increasing future business.

Co., 120 Broadway, New York
possibilities ac¬
securities
more
largely City, have prepared a brief com¬
cording to memoranda issued by these
Herzog & Co., 170 Broadway, New from an income standpoint and parison of the net operating in¬
York City.
Copies of these mem¬ we hope for a nice current return, come of various systems with the
oranda may be had from the firm some modest capital appreciation Seaboard for the first four months
from present levels and a satis- of 1943.
upon request.
fer

$3,986,000 to $6,375,000, or by $2,389,000
equivalent
to
approxi¬
mately 60%. Premium volume in

served tends to assure it

Seaboard Air Line Data

6% to 8%.
We aren't

Attractive Situations

war-stimulated traffic has been

fidence

of and
common
stocks will not
June 17, on which date he will be utility
indefinitely to
sell at
admitted to partnership in Ben¬ continue
dix, Luitweiler & Co., 52 Wall prices to return present compara¬
St., New York City, members of tively high yields ranging from
bership

—

"Conti¬
nental's" business and profits, the
growing industrial importance of

improvement (this in spite of the
continuing inflation threat); (3)

Philip G. Volpe

f

_

war

^

Security Ins. Co.:
Thirty Companies

1.07
0.68

7,258,000
501,521,000
1942 over

,

5,412,000

0.80

384,557,000

0.52

1925

60.0%
104,9%

27.7%

1.9%

20.0%

4.3%

from the above fig¬ more than a dollar of premium
fire insurance industry business for each dollar of capital
capitalized to handle a funds. Security is one such com¬
quite
substantial expansion
of pany, writing in 1942 $1.07 per
Others
are:
Agricultural
business, particularly when pres¬ $1.00.
ent ratios of premium volume and $1.28, Hanover $1.09, Home $1.14
unearned
premium reserves
to and Providence Washington $1.12.
capital funds are compared with On the other hand, Continental^
j the higher ratios which prevailed wrote only 39c per $1.00, FidelityPhenix 41c, New Hampshire 46c,
in 1925.
Few companies today write
(Continued on page 2174)
To

judge

ures, the
is amply

Gov. Brisker Hails Two

Guardian Of

Our

Party System Ss

(Continued from

(Continued from page 2162)
for

cleaning

selves

political

out

to

boards,

many

reaching

para-

attached

have

that

sites

bureaus,

Every
payroll, who
is using this time of high emotion
and danger to attach to our sys¬
tem of government his own per¬
sonal revolutionary ideas, should
be
driven from
his position of

have

capped the war program.
the

of

not

only

citizen

every

now,

We
We

but for many years
work

on

be made

table

the

to

American

them¬

and commissions and have handi¬

man

Reporter's
Report

Liberty M Free Government

to

to come.
the food.

produce

what

right to know

a

or

it

its

or

not

our

exceed

ing

an

rificing

to

purposes

food

are

sac¬

might

banks.
scribe

will
even

the

of

government in its

our

program

and

aims

figure.

full

given

allot¬

' "

'V\

.

pedof special groups should be
stopped at once. This is the time
for united action.

gress

clause"

Pioneering Job
vitally affecting the indi-:
The syndicate now engaged in
vidual lives of our people, both
the
$15,517,000
of
during and after war.
The Con¬ marketing

do it without

the federal

The favoring

delay.

vity

If every man on

payroll, and

of the United States should
immediately order an investiga¬

have

we

ninety thousand of them in Ohio

with

twenty thou¬

hundred

State employ¬

compared

as

five

sand

tion

this secrecy and

would

The

dissipated.

mediately

One of the most humiliating ex¬
periences of this whole war is that

much information which concerns

ning of the war would be nearer
and the cost of it all would be
Every

of

agency

liberties, our rights and our

our

participation fa the war comes to
us from foreign countries before it

greatly lessened.

government

released

is

should be utilized to the limit of

,

aid in the war ef¬
use
of, federal funds

We

by

ment.

its

ability to

fort.

The
the

for

of

spreading

local coopera¬
money should be

Federal

tion.

through local government
wherever possible.
This adminis¬
spent

tration has not used local govern¬
either

ment

of

extent

the

to

the

in

aid

war

last,

program.

Civilian Defense

throughout the

the American

signs of times,

people are going to demand that
the federal government, even in

example of what
federal and local government can
do in the war effort.
Yet even
is

nation

I

Unless

recourse.

the

be our
misread

The ballot box may

home.

ability to serve or their desire to

an

their

and

today constant vigilance must be
given to prevent the Office of
Civilian Defense being used by
the Office of War Information for
the
selfish
benefit of the New
Deal
and its satellites.
Let us

some

that

out

new

"Gold

the

that

least.

the

decision

was

one

has

And

that

at

time

time

that

made

its

the

New

record

own

they

more

in distribution.

made

'

NYA and

of the 764,000
stock of the Gulf
Oil Corporation, for the account
of Mellon interests and affiliated
Bankers disposed

shares of capital

with great rapidity.

This undertaking was

handled

;

unusually 1 substantial
marketing group which included ;
some
149 firms, though it in¬
volved only some 8% of the to¬
tal of 9,078,202
shares of the

by

a

hand out

an

company's outstanding stock.

Business

of

Eco¬

&

nomics, Western Reserve Uni¬

Chief Editorial
Cleveland

versity and

The

Writer,

Plain Dealer

have read

I

7

Dr. Saxon's

article

with interest and

profit. I am very
glad that attention is being called
by your publication and by others
the

to

serious

implications

of

debt expansion.

It

rapid

public

seems

to me current discussions of

inflation

the

danger

stress

too

much the matter of current prices

rises and

altogether too little the
effects
of
heavy
in¬
debtedness upon the stability of

to the people
The result is

ultimate

today the American people
soft, bankrupt in ethics and

are

no

true.

RUSSELL WEISMAN

host of other schemes
money

that

will

method

exact

come

Professor

ex-

in return for votes.

to

Gulf Oil Corp. Stock

ago,

in

ing, has not hesitated to dig into
the
public treasury via WPA,
*

trust funds,

doubt

Moreover, the type of person ap¬
pointed to high office has been
such that they have cared little or
nothing of financial morals.
They have among other things
led the people to believe that the
Government owes everyone a liv¬

satisfied with the progress

than

the

lines

Deal

not set

as

years

predicts disaster for
country and in which he out¬

ering in of votes at the elections.

new

100

written
he

our

opinion has sacrificed the wel-

my

that it is

represented

are

Randall
wherein

we

and

j fare of the country to the

job,"

entirely

an

the

of

not only

their merits.

on

Since

pointing out
type of
security is involved.
Thus far
that

themselves.7 At that time the dire
prophecies of Lord Macauley in
his now famous letter to John

decided in
Everyone today

were

unpacked court to decide

an

cases

"fast deal/'

contend

theory that the

erroneous

other fellow will be hurt and not

pediency of politics and the gath¬

was
a

the

on

Clause

point

group

stage

suit

of bad law but expediency to say

"investment bankers'

an

engineering

shine

would

they

really

and navy are now

light

the

that

Rather

displaying in the conduct of the
war,

the

in this instance for

in civil government

the army

in

Bankers

have

only

could

we

the efficiency

That

'

represent them
interests.
If, in

best

way,

admits

had

rights expired June 3.

I fear that the

war,

,

debentures,

The securities represent

must properly

war

Cases," which
February 1935.

some

the un¬
subscribed portion of a total issue
of $35,000,000 recently offered to
holders of the 7% guaranteed cu¬
mulative preferred stock on which

the

as

time.

fight¬

are

fighting in strange lands.
They
are fighting among people whose
languages they do not understand.
They are lighting anew the fires
of liberty around the world. They
must
not
be
dimmed
here
at

and

state

we

known

Supreme Court

Well, then, let's fight for freedom
here at home.
Our soldiers are

propaganda should cease at once.
There are many opportunities for
federal,

told that

are

income

the

After

people will not give a damn about

have

I

of those which since be¬

one

came

7%

Delaware

of

was

90 firms, is un¬
derstood to have placed in excess
of 50%
of the issue up to this

govern¬

own

our

subordinated

VV :;V',f',':

'

■'

Co.

comprising

ing for freedom around the world.

Deal

New

this has been

then

I

im¬
win¬

be

for

should reveal the
facts to the people of this country.
it

done,

were

mismanagement

reason

the action of the

When

conference.

to give their every ef¬
fort to the winning of the war.
the fear of the effects of internal

ees,

the

determine

to

&

Armour

However

contracts.

in

A

so

population.

In

the set

exceeding

loan

total

dollars.

pander

unthinking element of the

the

to

my

though this occasions

other acti¬

any

or

the

be

that the way to' ob¬

see

tain office is to cater and

the
debt,, or
the
bonds
they
doubts. ;;; ,; / f ]V/77., „' ','7
bought, or the insurance policies
1935, or to be exact in 1934, they have paid for, or the money
I instituted an action against the
they may have in the savings
B. & O. Railroad for payment of
banks, but ruthlessly rebel at the
some
coupons" in
gold or its imposition of crushing taxes and
equivalent as a test of the "gold demand repudiation of the debt,

investors, other
Such individuals as

ments

to

come

,

honest

unwilling to put
hardships and the
both parties have

with any
politicians in

up

den, the people will decide to pay
the debt we are building up in

subscription by in¬
than
sub¬

for

stitutional

be

know

of around

The balance of the loan will be

certainly America is

but

entitled

at once.
It should not be
necessary for Congress to do this.
The administration itself ought to
power

sacri¬

any

We

others

that

helped,

make
war.

suggest¬

years,

rate

and

,

—,//

available
will

America

fice to win the

ten

interest

2%.

distribution.

and

use

indicated that

was

financial morals,

since you re¬
quest comments on the views ex¬
pressed I address this letter to
you.
/
.
I only hope that the views ex¬
pressed by Dr. Saxon will prevail
and that however heavy the bur¬

week

a

Support A 300 Billion Dollar Debt?
(Continued from first page)

enlightening

the maturity of the bonds would

government is planning to do with

public

Gan U. S.

>

2163)

page
within

known

but it

so,

Thursday, June 10, 1943

& FINANCIAL CHRONICLE

THE COMMERCIAL

2174

cur

economy.

Rollback Of Fresh Vegetable Prices
Cannot Be Enforced Senator Taft Declares
In

warning by Senator Taft that the Office of Price
rollback plan would not have
be enforced, Richard Gilbert, OPA official, disclosed oh
the OPA was planning a rollback of fresh vegetable

spite of

a

Administration's fresh vegetable price
a

chance to

June

that

8

of this prices, said an International News Service dispatch from Washington
on June 8, which went 011 to say:
keep civilian defense what it was
7
dence would inspire the American transaction suggested to market
intended to be and what it is, a
Mr. Gilbert, economic advisor tc3>people — a
new
determination observers the disposition of in¬
Price Administrator Brown, ques¬
great civilian effort to defend our¬
would arise everywhere—and our vestors to absorb seasoned equi¬
Interesting RR. Situations
attack

from

selves

without

all

and from

elements

subversive

within

society.

It also

our

It is a noble and inspiring
example of the peoples' response
to need.
It is self-government in

try.

highest form.

Even in time

local government can be
strengthened
and
utilized, not
only for the winning of the war,
but
for the preservation of the
of

"

war,

foundations of free govern¬

.very

\ :
bureaucratic

ment.
The

government,

'

be

-

of

system

for

greedy

must

constantly

"

v

power,

watched

in

state and in every com¬
munity.
In- education,
welfare
and
health,
the
ever-expand¬
every

,

ing

of

power

reaches

ernment

It

fields.

not
of

the

burden

the

citizens

out

into

government upon
but too

themselves,

is costing much more

efficient

government.
I have no fears for the future

.

country if we preserve free
government, if the party system
is maintained, if the right to vote
of my

tioned

at

Senate

a

Banking

and

the cor¬ Currency Committee investigation,
"no affirmative ac¬

declared that
tion

In Sight

the

on

needed,"

Congress is
OPA subsidy

of

part

give

to

-

Another

large

refinancing

tial

came

Bonds On Market

Armour

&

Delaware

of

Co.

7%,

interest.

writers

Other

under¬
Boston

principal
First

The

are:

500,000 held in the Treasury. 7-7

Corp., Harriman Ripley & Co.,
Funds for the retirement of the
Inc., Smith, Barney & Co., Blyth 5s will be raised chiefly through
& Co., Inc., Goldman, Sachs & Co., the sale of new securities and the
the
Lee
Higginson
Corp.
and company and bankers already are
Lehman

Brothers.

discussing

The

debentures

scribed

issue
of

portion

offered

the

7%

recently to

for

in

1978

and

sinking fund

are

on

holders
under

Bank & Insurance

stock

rights expiring June 3.
ture

issue will take.

new

$35,000,000

a

preferred

unsub¬

the

are

of

which

form

the

They ma¬
April

1,

110 to and including April 1,
1966, and thereafter at diminish¬
ing premiums.
Other than for
sinking fund, the debentures are
callable at any time at 112V2 until

at

to

67c per $1.00.

With regard

unearned ' premium

the ratio

very

Taft added.

OPA, Mr. Gilbert disclosed,

The
also

7

planning a rollback on
the latter program

is

canned goods,

reserves,

is even more conserva¬

'•./•"

enforce.",/

all to

(Continued from page 2173)
and Great American, about aver¬
age,

*

poorly administered
OPA is responsible for our present
increases in living costs," Senator
"A

current * situation in

Co.,

and

Railroad,

Dela¬

Western

&

Lackawanna

& Maine
Kansas City, St,
Railroad Co. o|-

Boston

Louis & Chicago
fer 7

interesting

possibilities

ac¬

cording to a discussion of the cur¬
position of these issues con¬

rent

in

tained

"Railroad

Securities

Quotations" issued by B. W. Pizzini &
Co., 55 Broadway, New
York City. Copies of the June is¬
sue of the "Quotations," contain¬
ing comparative figures on guar¬
anteed
rail
stocks,
underlying

railroad bond quota¬
reorganization
railroad
bond quotations, minority
stock
quotations and guaranteed tele¬
graph. stock'quotations; may be
mortgage

tions,

obtained from B. W. Pizzini & Co.

the being "still under consideration.' upon request. A four-page com¬
Senator Taft bitterly criticized
prehensive financial analysis of
the planned rollback on vegetable
Delaware, Lackawanna & Western
prices, calling it "the hardest of may also be had from the firm

Stocks

redeemable

any

act."

some

$30,499,000 of this issue out¬
standing exclusive of some $2,-

(subordinated) at 110 and accrued

of the

intent

showed

reports

Last

debentures I

income

cumulative

The
ware

Railroad

piece of poten¬ powers.. 7"'.7 7/7
.7
into sight
Senator
Taft
challenged this,
with the revelation by the head
saying:, 7, 'v,7, -,7V' 7/ 7
of United Drug, Inc., that the com¬
"I don't think Congress had any
contemplates
redemption, such idea when it
A
banking
group
of
ninety pany
passed the Price
later in the year, of its 25 year 5%
firms, headed by Kuhn, Loeb &
Control Act and I do think the
debentures which are not due un¬
Co., offered June 7 $15,517,700 of
OPA
has greatly
stretched the
til March of 1953.

Armour Of Delaware

new

only is increasing

in

obligations

fixed

porate field.

gov¬

than
justified by sound business of

often
is

centralized

lieu of more normal flow

in

ties
of

Big Refinancing

storm, accident and fire, as it has
already done throughout the coun¬

its

would re¬
strength and

with new
courage and faith.

spond

consummation

Quick

confi¬

new

boys at the battlefronts

or
can

great aid in time of crisis,

render

land—a

this

across

.

.

<

for

the

asking.

V

7

'

.7

Washichek Made A Director Attractive Possibilities Seen
Of US Junior Chamber
In Davis Coal & Coke
of A. W.
New York,

Bernard J. Washichek,
Benkert

&

Co.,

Inc.,

National Direc¬
the United States Junior

has been elected a
tor

of

,

Common

Coal

&

of

stock

Coke

the

offers

Co.

Davis
an

at¬

tractive

situation, according to a
$1.00
Chamber of Commerce, it was an¬
April 1, 1948, at 110 during the
memorandum just issued by Hill
as
already
noted, Agricultural
nounced June 8.
Mr. Washichek
succeeding
twenty
years
and
education are kept ever open.
shows
approximately $1.00, Fire will address the Executive CqmT Thompson & Co., Inc., 120 Broad¬
thereafter on a descending scale.
I have an adiding confidence in
Association 87c,
Home 91c and
mittee of the Chamber in Chicago way, New York City, which calls
Proceeds will be used to re¬
the judgment of the people of our
Aetna 75c.
Companies with ex¬
tomorrow (June 11).
That meet? attention to the fact that the 1942
the
balance
of
the
7%
country when they know the facts. deem
ceptionally low ratios of unearned ing will be followed by the an¬
There is no place in America for guaranteed preferred stock. Up¬
dividends on this stock were over
nual
meeting of the delegates,
secret understandings. There is no on completion of this operation premium reserves to capital funds
13%
on
present price and the
representing 1,000 or more local
place here for secret conferences. the company's capitalization will (i. e. conversely, high ratios of

imperilled, and if the chan¬
nels for information and unbiased
is not

Security shows 80c per

tive.

,

-

the
of the

One of the black marks upon
war

effort has been the use

to keep newspaper reporters
and the elected representatives of
army

»

the people,
of

the

their congressmen, out

food

Springs.

conference

at

White

That conference may be




consist

of

$44,220,000

mortgage 4%

of

first

bonds due in 1955;

$18,676,000 of 4s due in 1957; the
new
income debentures,
173,581
shares of 7% preferred stock and
100,000 shares of common stock,
both stocks

of $100 par value.

funds

capital
mium

include:

Continental

34c,

Phenix

North

and

unearned

to

reserves)

Fidelity

33c, Hartford 48c, Ins.

American

St.

34c,

pre¬

Boston

Paul

of

35c, Phoenix 21c

31c.

groups

of the Chamber in Chicago
12 to June 14.
The

June

from

stock itself is selling

currently at

quick

asset value.

less

than

net

present conducting Copies of this interesting memo¬
randum describing the situation in
drive to help recruit

Chamber is at
a

national

90,000 WAACS for
.Tillv

1

the Army by

detail may be had
upon

request.

from the firm

Volume

Number 4184

157

THE COMMERCIAL & FINANCIAL

CHRONICLE
2175

State Income

Municipal News & Notes
American

>

cities

largest

annual

time

their

in

made

reduction

bonded

the

Revenues

on

struc¬

portation.

Military

John Rust Heads State

Revenues Reviewed

ferries, toll bridges and for all
all forms of rail, air and other trans¬

of

debt

Tax

tolls

from

State

taxes

have

assumed

tance

are

since

income

the national

new

tures
during 1942, the National charged by many publicly owned has been geared to war, and they
will
increase
in
Municipal Review reported June bridges in New York State, in¬ undoubtedly
4.'
The total gross bonded debt cluding
the
Lake
Champlain, amount and importance as reve¬
of 343 cities of more than 30,000 Rouses
Point, Thousand Islands nues from excise taxes fall off.
Peace
population declined 3 per cent and
This conclusion was reached
Bridges.
Fourteen
by
during the year to continue a ferries in the Port of New York the Federation of Tax Adminis¬

downward

trend

in

six-year period.

a

343

cities had

evidence

District

for

interstate

On Jan. 1, the
estimated

an

Itosina

.

Mohaupt,

statistician

Research,

June

issue

of

in

wrote

the

review

that the debt represented a per

capita load of $166.75,

pared with
and

1942 figure of $171,

a

towns

federal per capita debt of

a

$814.50.
The

decline in

bonded

said, resulted in
from
eral

debt

the part taken

of

their

state

local

measure

legislatures

gave

It

au¬

capital improvements during
depression and to present in¬
ability of local governments to
undertake

reports.'

of

improvements because

restrictions.

war

policy
adopted for financing of post-war
erate

counteract this

or

trend, she
.

.

Gross debt of

a

group

enacting

of 240

reporting from 1938 to
1943 increased by H of 1%, the
said,

report
Of

New

its

but

the

added

"undue

York

City

disproportionate

of

the

latter

enacted

than

more

the

was

the

this

association

states-

Ore¬

first

Ore¬

year.

pointed

state

to

population, New York excepted,

out,

authorize

time,

association

holds good today,

declined from $101.56 in 1942 to

$98.72 in

cities out of situations where they
would
be paying off long-term

which
est

"have

shown

reduction

last

five

great¬

over

apparently

years

difficulty

having

the

in "debt

in

1943

decrease

loans

the

had

the

worn

Of

The

Per

capita debt reduction in
nine cities (500,000 to 4,000,000
population) remained constant at

reduced 4.8%

cities

smaller
was

for the second

(30,000 to 250,000)

equal to or greater than the

specifies

limit

no

on

Connecticut
under the

surplus

cities
state

new

funds to

fund,

-

build

special levies

up

a

re¬

make

up
on the
Such funds may be spent

dollar,

only

and
towns,
law, may use

they can
to 2 mills

or

for

postwar

$117.61;

Chicago,

S71.59;

Philadelphia,

$133.63;

Detroit,

$151.72;

the end of the

construction.

Los

Angeles,

make

$163.19; St. Louis, $64.59;
Boston,
$77.90;
Pittsburgh,
$98.75; Washington, D. C., no

time

election;

bonded

pose

more,

debt;

San

Francisco,

be

$144.52;

New

of

any

the

levy

changed only by

At¬

lanta, $26.53; Dallas, $80.16.

general

a

The

.

of

several

and

Authority have' de¬
assess tolls against mili¬

tary vehicles using Port Authority

crossings, it was announced June
7/ The step was made necessary

curtailed revenues resulting
from
the
gasoline
and rubber
by

ment,

an

be

majority vote

a

said

that.cities

including Wis¬

by

charter

action

up

re¬

amend¬

authorized

by

home rule provisions of the states.
In

addition

fund

to

measures

postwar
enacted

reserve

by

provinces

—

Ontario

legislation al¬
A method of billing will
permitting military lowing their municipalities to set
traffic to pass through -toll lanes up cash reserves for the
postwar
without interruption, as has al¬
period.
Laws of the two pro¬
ready been done by other public
vinces, broad in scope, are sim¬
bridge agencies.
Existing Army

authorize

ment of tolls by

the

pay¬

military vehicles




ilar

to

states.

those

of

several

of

1942

M $47 JO A SSiare

of

Corporation, has been chosen by
the Nominating Committee as the
candidate

for

Municipal
for

the

presidency

Forum

fiscal

of

of

New

Mellon Securities
Corp. and

underwriters offered
June 7 764,500 shares of
Gulf Oil

The

Corp. capital stock

York

at

a

$47.50

a share. The issue
subscribed.

1943-44.

year

as¬

sociated

Other officers selected for elec¬
tion at the annual
meeting to be
held shortly are:

The

offering of the

made

the

Central

Hanover

in

various

Bank and Trust

price
was

of

fully

stock

was

behalf

Nominated

for

the Board of

membership

Governors

to

calendar

year,

than

more

for

1941, while

South

Dakota

decreased

30.5%,

instances, variations
for to
of

in

some

In

can

degree by

activities

war

be

or

by legislation changes.
The 25%

cut in New

York's in¬

dividual income tax
payments, by
far The
largest
in
the
United

of

in

the New York Curb

the

Exchange.

prospectus, issued by Gulf

Nominating
offering, reveals
Manning Barr, net crude-oil reserves amounting
Co., Inc., chair¬ to $1,076,000,000 barrels in the
man;
Arnold Frye of Hawkins, United
States, and $600,000,000
Delafield & Longfellow; Otto H. barrels in
Venezuela. Of the Vene¬
Goettert, Central Hanover Bank zuelan reserve, one-half is under
&
Trust
Company;
Sanders contract to be sold as
produced.
Shanks Jr., of The Daily Bond
The prospectus further discloses*
Buyer, and A. Edward Scherr, Jr., ownership, by a
wholly-owned
of the Dime Savings Bank.
subsidiary, of 50% of the Kuwait
Committee
of

Barr

W.

are:

Bros.

Oil Corp. for the

&

Oil

Co., Ltd.

The latter company
long-term concession, states
prospectus, to produce and re¬

has

Herbert J. Lacy Is

fine

ated

with

Lacy is

Van

trading

Lacy

Abbe,

department.

prior thereto

the

72

Fay &
ner

Co.

J.

and

of

Kuwait

on

total

hold

to

down

Clyde

Mr.

Arthur

C.

Barnett

Pierce

Corporation,
Jacksonville,
an interesting

Building,

Fla., has prepared
circular

containing quotations and

information
bonds.

War¬

Florida

on

Municipal

Copies of this circular

had upon request from
C. Pierce Corporation.'

be

& Co.

tax

followed

Iowa

in

$2,700,000

50% cut, while South

a

and

West

Virginia

re¬

South

year.

State of Minnesota

Dakota, however, will collect on
1942 income.
Oregon has made
several changes in its laws
which,,
it

is

income

much

as

V

1.10%'Rural Credit Deficiency Fund

estimated, will reduce taxes

1943

on

as

"The

tax

a

in

that

State

by

Certificates of Indebtedness

third.

tendency

collections

for
rise

to

income
in

the

Due

$675,000 semi-annually July 1, 1951 to January 1, 1953,
inclusive

future will be offset by several

factors,"

the

Federation

"Legislatures

of

States

large cash balances
taxes
of

most

taxes,

States

income

effect

will
on

with

the

have

State
ad¬

an

collections,

These Certificates, to be issued for

opinion of counsel will

par¬

full

>
from
taxing
income, although the

effect

of

recent

Approximate

increases
Maturity

potential

more

taxpayers
are entering the armed
forces,
thereby reducing their taxable

widespread

which

do

thus

adoption

taxes

in

not

far

of

those

have

them

unfulfilled,

State
States
"seem

.although

other States may follow the ex¬
ample of Delaware in levying flat
rate

income taxes similar
Federal 'Victory tax.'"

to

the

1,

1951

101.00

1,

1952

100.875

July

1,

1952

January

income

1,

1953

whose
be

only
ing

the

opinion

obtained

such

these

in

of

be

any

the

0.992

0.804

0.998

100.75

0.844

1.017

when,

furnished

state

in

as

in

by

upon

which

undersigned

securities

as

and if issued and received by us and
Messrs. Thomson, Wood & Hoffman,
delivery.
The offering circular may

this
are

compliance

/

with

announcement

registered
the

Wiebel

with

has

John

Building,
will
ance

be

end

Wiebel

cipal

charge
of

has

of

School for

the
been

the
a

Burch

dealer,
of

from

are

offer-

in

such

state.

BACON, STEVENSON & CO.

EDWARD LOWBER STOKES & CO.

associated

Yeaman,

securities

in

circulated

and

HEMPHILL, NOYES & CO.

B. J. VAN INGEN & CO. INC.

Va.—George

become

W.

law

Incorporated

With J. W. Yeaman
C.

is

dealers

securities

STONE & WEBSTER AND BLODGET

HALSEY, STUART & CO. Inc.
EASTMAN, DILLON & CO.

MARTINSVILLE,

0.969%

0.804

approval of legality
will

0.760%

to

Maturity

100.875

These Certificates are offered

subject to

Yield

,.yl Optional Date

January

point.

of

Price

July

income almost to the vanishing
The Federation said predictions

Approximate

Yield to

will not be felt until 1944. More
and

refunding purposes, in the
general obliga¬

constitute valid

tions of the State of Minnesota for the payment of which
the full faith and credit of the State are
pledged.

revenues

corporate

.

our opinion, for Savings Banks in
York, Massachusetts and Connecticut

New

in

ticularly in States which derive
large

interest

any

•

.

subject to redemption at par on July 1. 1946,
payment date thereafter upon 30 days notice.
:

are

Legal Investment, in

Deduction

permitted

levying

tax,

or

repeal

may

slash rates.

or

Federal

These Certificates

said.

the

and

insur¬

business.
assistant

Martinsville

Mr,

Dated July 1,
1943.
Principal and semi-annual interest, January 1 and July 1,
payable in New York City or St. Paul, Minn.
Coupon certificates in the denomina¬
tion of
$1000 registerable as to principal only, or as to principal and interest.
The

information

sidered

reliable,

contained

and

while
believe

herein

not
it

been

has

guaranteed

to

be

correct

carefully compiled from sources
to comp'eteness
or
accuracy,

as
as

of

this

date.

prin¬

High

June

7,

1943.

number of years.

'

VI

Iff

' V
■

.

'

,/

'

! :

con¬

we

may

Clyde

the

income

individual

ap¬

of the

Persian

Florida Bond Quotations

with Doty,

was

of

area

Gulf.

department of J. F. Reilly & Co.,
and

an

State

formerly in the trading

was

in

acres

Wall^ Street, New York City, in
their

oil

associ¬

now

Tuyl &

cruae

proximately 3,897,155

With Van Toy! & Abbe
Herbert J.

a

the

States, offset increased collections
other States

the

approxi¬

Corp. stock outstand¬
ing.
The 764,500 offered yester¬
day represent approximately 8%
of the total.
The stock, which has
a
par value of $25, is traded on
The

of

listed

are

owners

of Gulf Oil

v.

Members

as

mately 70% of the 9,076,202 shares

on

serve

three-year terms are: Carl O.
Sayward, of United States Trust
Company, and Thomas F. McEntee, of Adams, McEntee & Co.,
Inc.

trusts

prospetus

Company, Treasurer,

among

Federation

it did in

as

distribution

and

be worked out

regulations

most

various states this
year, two Can¬
adian

on

reflect

the

Quebec—adopted

shortage.

taxes

come

the

collected

collections

special election.

states,

funds

serve

The Commissioners of The Port

pur¬

may

consin, have been setting

of New York

cided' to

or

association

Port

Authority To
Assess Military Vehicles

is

proposed levy must
in the ordinance

at

$105.83;

law

specified

$136.11; Newark. N. J.. $152.79;
Mo.,

on

without

requires that

Kansas

City,

and

Washington's
but

making

Orleans,

amount

or

limit

con-

much—203.5%—from in¬

as

verse

levies} without

similar,

$57.92; Milwaukee, $49.19; Buf¬
falo,

war.

The New York act authorizes
the
local
governing
body
to

$57.95; Cleveland, $98.39; Balti¬

off

which

pealed their laws this

Under " the Minnesota law local
of all cities of 4.7%."
The per capita net bonded debt, governments may. levy taxes to
excluding utilities, reported for support postwar funds, which may
not be spent until one year after
representative cities included:

York,

twice

Dakota

their

the amount

year

based

variations

the

1943 with

average

New

In

collections.

New

have the

California cities

which

with

serve

■

Per capita debt reduction of

4.

i

■

Minnesota,

fallen

great,

Mississippi

1942

California,

of tax levied for the purpose or
the time levies may be imposed.

.

Per capita debt of mediumsized cities
(250,000 to 500,000)
successive year.

states,

authorized by a 1937 law to

use,

3,

was

16

and Washington

dinance

reduction was 16.6%.,
second only to that of cities of
more than 1,000,000.
J

projects for
borrowed

was

set up cash reserve funds by or¬

debt

year

are

said.

in

broadest laws.
are

Their five

5.5% in .1942 and 1943.

to help

was

out.

the

York

2.

the

money

Connecticut,

2.8%..

was

long after

which
are

maintain¬

ing this enviable record."

States

accounted

at the

move

which 'the

reason

says

cities

has

years,

contrast

a

three

accurately changes in tax¬
able/income,
reveal
substan¬
tially the same trend.

Reason for the

1,000,000

1943, but these

Rust, Assistant ViceEquitable Securities

President

more

municipalities to build up reserve
funds, taking the action in 1931.

Per capita net debt of four

of

statutes

gon,

first

Figures

calendar

gon—broadened their previouslyTrends Listed

increase

individual

Michigan, New Jersey and

same

-The report listed the following
trends:
1,

of

siderably.

;

previ¬

Oregon, Cali¬

were

the

.continue the upward trend, the
Federation said, though the rate

.

:■

Three

^

cities

states

for

/quarters of the 1943 fiscal

chusetts.

period.

V

nine

legislation

Figures

V

of

the

size,

crease

year

Nebraska, ■ New York, f
Michigan,
Washington, : Ken- '
tucky, New Jersey and Massa-1

that

debt fell 10% in the

gross

The

the

1943

fornia,

influence"

because

to

ous

cities

without

Island.

.

however,

jumped from $153,to
$269,000,000, an in¬
of 65%.
j :vi

J00,000

Arizona,
Connecticut,}
North Carolina, North Dakota, Minnesota,
Pennsylvania ' and /
Rhode

said.

noted,

taxes

come

' if;

were

will do much to accel¬

programs

%

•

States taking action this

The

be

virtually no gains from 1941
1942, whereas corporation in¬

to

money aside for the future, the
American Municipal. Association

.

should

made

legal authority by the state to lay

cal

at

the Federation said, that individ¬
ual State income tax collections

number of states where local gov¬
ernmental units have been given

by the Fed¬

in¬

years

collections increased

$500,000,000 mark in 1942.

raising to 16 the

year,

succeeding fiscal

tax

accelerated rate, passing the
$400,000,000 mark in 1941 and the

war.

governments such

thority this

Government in financing lo¬

the

The study showed the

Manicipal Forum Offered Publicly

J.

an

reserve

Seven

;

Mohaupt

large

a

study of the State
picture for the last

tax

But in

come

legal authority to build up
funds
for
public

cash

works construction after the

the municipalities, Miss

income

few years.

for the postwar era is reflected by
1943 legislation giving cities, and

com¬

as

bridges

after

John

of
a
group
of
Phillips T. Bar¬
following:
bour, of The First Boston Corpo¬ shareholders which includes Mel¬
Local Units Empowered To
After reaching a high of
nearly ration, Vice President; Elmo P. lon Securities Corp., owner of
Establish Post-War Reserves
$400,000,000 in 1938, based on Brown, of United States Trust 546,400 of the shares, and
manager
; Wide
interest of the nation's 1937 incomes, collections for 1939 Company, to succeed himself as of the underwriting group. Mem¬
fell to approximately
municipalities in preparing /now
$330,000,000. Secretary, and John R. Camp, of bers of the Mellon family and

for the Detroit Bureau of Gov¬
the

trators

with the
and
tunnels

compete

charge tolls to military vehicles.

gross

bonded debt of $8,492,000,000.

ernmental

which

Of

impor¬

economy

Guif Oil Stock

THE COMMERCIAL & FINANCIAL

2176

will

Reorganization Of Food SystemNine-Point Program To Clear Up 'Middle'

have

about

exhausted

the

Hoover Urges

surplus of feed of the whole North
American
continent
during the

Offers

are

next twelve months.
wheat to

(Continued from page 2162)

is

win

to

who

surprise

may

tween

it

47,000,000 acres.-

problems,

begins again.
'
/ We are still eating mostly on
the 1942 production;

be¬
and

1932

1939, through Government restric¬
tions, the acreage in 17 leading
crops harvested was reduced by

of

blamed

1%,

which have
one-half of

floods
less than

upon

destroyed
nor

the

upon

weather, for

promises about normal crops.
can
they be laid upon the

Nor

passed in

bread grains be¬

of distributors and rationing. Then as many of them as are nec¬
the press reported essary should from time to time
a
spokesman of the O. P. A. as be ordered back to the farms with
saying "food prices and food, dis-, their uniforms. /They should re¬
tribution are out of control."
It ceive their pay from the farms,
and not the Army.
They should
was denied by another spokesman
the next day.
'But the second be subject to call in national dan¬
That would give dignity to
spokesman had not discussed it ger.
They could consti¬
with the housewives nor with the their service.
farmers.
However, when we are tute a great national reserve both
fighting a war grief-over spilled for production of food and the di¬

sors,

clining while at the same time the
demand
is
dangerously
rising.
And
these decreases cannot be

that

area.

When lend-lease was

we

livestock and we are

little surplus of

about 95% of our whole har¬

are

amounts

yond our own needs.
1
Thus our supply of food is de¬

These 17 crops

vested

official

Newspaper headlines of

/

people to

some

harvests; of

the

let me say
that our food year
is approxi¬
mately from July when the har¬
vest starts to the next July when
food

with

a

fundamental

a

know that in the seven years

not familiar

are

is

our

Already

-

large

using it for industrial alcohol. By
this time next year we will have

all this turmoil
disorder.

But underlying
there
It

peace.
To those

the

to

farmer

the

from

housewife.

thing that counts now
victory and secure the

only

The

suggestions.

constructive

tribute

food

It is to con¬

structive criticism.

feeding

farmer.

■

»■'

•

Thursday, June 10, 1943

CHRONICLE

-

A month ago

milk' does

make

not

rect military

milk.

more

question must be, where do
go from here?

Our

lasts about twelve
Theoretically about one
will clear up this muddle of un¬ year's
supply or one-twelfth of
controlled food prices, local fam¬ our machinery has been used up
ines, profiteering, • black markets through suppression of manufac¬
and stifled farm production, That ture, It will also require great ad¬
we

is

abandon

to

the obsolete meth¬

The American farm folks are ods now in use which were proved
to March, 1941,- we undertook there¬
a failure in other nations, in the
by a vast increased burden of the most skilled farmers in the
our present food year read:
They produce more per last war, or are copied from the
production. Yet payments world.
"The most abundant barest in food
to farmers to restrict production person than any agricultural peo¬ British, whose situation is wholly
41 years."
I ' V ''' j"" J/
different from ours.
We should
"Harvest per acre 12% above all were not all removed for the two ple on earth. • They have done a
start
with
the
system 1 which
plantings of '41 and '42. By 1942 heroic job in planting this crop
records:"
with but little help.
In January) proved a success under the Amer¬
"There are abundant food sup¬ we had recovered only 9,000,000
icans in the last war and improve
of these 47,000,000 lost acres in last they were promised an agri¬
plies."
-i
: '• ./'■
•
/;
cultural army of
3,500,000 city it.the 17 leading crops.
:
"The ever-normal granary as¬
And let me say this about food
folks.
But it has not arrived at
During the last year we were
sures no shortages of food."
control while we were in the last
the food front yet. They must be
;
"Greatest food production in our saved, and our Allies were saved,
war.'
.' .'i
-

"Food Administrator says food
outlook is good."
This happiness and exultation in
Washington did not seem to be re¬
flected
in
the realistic land of

it

quotations

few

A

housewives.

thousands of city press
over
the
last
four

from many

headlines

less enthusiasm,
City: "City* facing
first famine in our history.". "Less

months

carry

f 'New

York

;than 20% of normal meat

supplies

"Shops cannot
Government ration."
'"Prices
above
ceilings."
"1,055
black market convictions."
eight weeks;"

for

the

supply

bythe

disaster

from

super-

It is not likely to

bumper crop.
be

than ever before."

and hogs

cows

' ■' ,
beef cattle, dairy

;
more

repeated soon.

./:/

■

have eaten our
way
to the end of that superbumper crop. We may, therefore',
explore the prospects for the next
food year that is now just coming
However,

we

ditions to handle this extra 40 or
50 million acres in 1944.

place food produc¬
equality with muni¬
tions would bring disaster.
Last
Winter the Mid-West Governors,
that failure; to
an

on

Congress,
of

us,

your

organization,

all

demanded drastic reforms

of

re¬

price ceilings.
It begins at the wrong end.Price
fixing in a great food-producing
country must begin as near as:
and wholesale

possible to
trols

proceed

,

.

continue to
Two years ago, one year ago, feed our Allies; (d) If the war in
six months ago you and I warned Europe should come to an end

tion

Fifth. Abolish the system

tail

■

.

tightening

the horizon.

on

average

the farmer and con¬
from there on by
regulation of the trades against
profiteering. Prices rose less when
this system was applied in the last
war
than they have under the
i:-..;/-' .'■■■'
there before the harvest.
We steadily increased our food present retail' ceilings.
The blunt conclusion from all
We must
We - shipped
more regulate the flow of water at the
this is: (a) Our cities will have production.
instead
of
chasing
the
less food supply during the next food to our Allies monthly than nozzle
We had drops from the shower.
winter and spring even than they is being shipped today.
no
local famines in the United
This; present price system is
had in the last few months; (b)
States as we are having now.
We stifling farm production. It is not
We will not starve; (c) We can,
We had stopping inflation.
:
■
by better- organization and
by had no black markets.
■

"We have

an

on

which years.'

There is only; one course

statements from Washington as

history." V

effort.

Fourth. Agricultural machinery

:

within

the

should

we

food

three

belts,

our

next

have

months,

twelve
no

consequential

supplies with which to meet
or four hundred millions of

starving people.
Remedy

the

for

harvest

1943

people zealous in a moral cru¬
sade to help win the war with
a

instead of lots of people
trying to beat the game. Includ¬
ing the Department of Agricul¬
ture, we had only 23,000 paid Fed¬
eral
employees
connected withfood.
Today we have over 120,000.
Moreover, food prices rose
only 17.9% in the 17 months after
we declared war in
1917. Wash¬
food,

■'

Sixth:

Ask the farmers to

ap¬

point their own war committee

prices

and

on

little

collective

bargaining • with < them
prices..
The so-called

in fixing
"parities"

do

a

should be abandoned for the

war.

Prices" to the farmer must include
floors

as

well

as

ceilings.

Prices

should be fixed that will take in¬
to

account

labor

and

other costs,

man¬ year is now too late, as the plant¬
and above all, that will stimulate
and more ing is mostly done. We must be¬
production.
/
farm machinery.
We wanted^ to gin to build up the harvest of a ington statisticians. admit a rise
"Mayor comes to the rescue and
Such a revolution in the price
of 24.3% in the 17 months since
recover
more
of the 47,000,*000 year from now. That is in 1944.
'imports 600,000 pounds of pota¬
Pearl Harbor.
The housewives system would save a few tens of
We still have time to redeem
lost acres.
"•/ ;
toes." './/
•
•
'/ • <■;/•
If it is to be re¬ will admit a rise of at least 35%, thousands of policemen. It is dif¬
Following this, the Department the situation.
v»! 'Thus the Mayor was lighting up
I do not pretend that our meth¬ ficult to catch an economic force
of Agriculture issued a report on deemed, we must have far wider
the dark scene with one potato for
We must have drastic ods were perfect in that war. We with a policeman, anyway, ■■ v
"farmers' intentions to plant," in¬ vision.5
£very third person among the 7,had to pioneer an unknown field.
Seventh.
Rations should be set
changes in national policies.
000,000 people in New York. The dicating an increase of 4% in the
We simply must take seriously Results ought to be better in this to balance consumption to produc¬
acreage the coming year over that

increased

control,

food

in

power

for

.

the farms

.

headlines blazed for days over the
of last Summer.'
The implication
•Mayor's having "secured 1,000,000
of that figure to the public was a
pounds of meat." That nourished
each person with a gorge of meat probable increase of 4% of food
over the super-bumper harvest of
equal to the weight of two silver
We vitally needed an
dollars for just one- meal.
The last year.
production over
last
Mayor, however, was doing his increased
year. But to assure this with nor¬
best to keep up good cheer.
Boston: "A desperate food short-; mal yields we should have had
age."
Meat and vegetables non¬ not a 4% increase but a 15% in¬
existent to thousands of families." crease in planting. However, the
"Arrivals
lowest
in
history." use of this comforting 4% figure
"Hundred indicted in black mar¬ led the country into a statistical
kets"

and

■

...

Francisco:

San

■

critical all

vegetables

the coast."

*'■'

"Shortage meat

And

even

along

in the food

paradise. And such is the power
of statistics that the demands for
reform were flattened out.
We
were told we were alarmists and
,

something worse.

belt we hear:

"Shortage of meat,
black
markets
all
"Housewives cannot find

/Chicago:
vegetables;

did

We

secure

part

reforms.

with the
speed of- light.
But finally the
about."
War Department, after unkind re¬
meat promised on ration cards."
marks, gave concessions by defer¬
In u Philadelphia,
Baltimore,
ring some farm boys from draft.
Cleveland,
Seattle,
Omaha, St.
Louis and

dozen other cities are

a

of

headlines

the

same

import.

"Scarcity/ "Famine," "Black Mar¬
kets," "Shops Closing; Cannot Get
the Ration in Meats, Fats, Veg¬
this

that

notion

the

me

to

situation

is

leads

all

the

Somewhat

The statistics

are

also perplex¬

The Department of Agricul¬
that the extraordinar¬

ing.

ture states

ily favorable weather at test; har¬
vest gave
an

12% greater yield

a

us

than

acre

in our

before

ever

It shows a greater pro¬
duction of meats and fats than
ever before in our history.
Lend-

history.

lease says

of

10%

we

our

abroad.

O.

are

shipping under

total meats and fats
has ra¬

P. A. says it

down

tioned

meat

consumption

Seaboard city marketing
officials say not half of the meat
and fat ration is available in the
by 30%.

markets.
cians

can

Perhaps some
tie

these

statisti¬
to¬

figures

They might also try to
I am
explanations. But
thing is certain. If the statis¬
are correct, and I do not chal¬

gether.
tie

up

the potato figures.

^Ware of all the
one

tics

lenge
cracy

all too little and

become

them, then some bureau¬
is strangling the flow of




too late.

examine what has
of this statistical paradise

let

us

food supply. To pre¬

,

,

upon

them by

no

Now

and not worse.

But
;

tion.

what should we do now?

First. The first necessity

is to

It only adds muddle to put

the ration

higher than the avail¬

able supplies.* And it brings great

consolidate all authority over

'

was added to the
separate
and conflicting
agencies dealing with food.
It
agency

eight

war

food injustice, for some people get the
production and distribution under ration and some don't. We should
realize that in peace time on bal¬ one single responsible administra¬ simplify the whole rationing busi¬
tor.
There are too many cooks ness by over 50% or 60%.
It can
ance, we
are a-food importing
for too little food. Control of food be done by decreasing the number
country and today we are block¬
aded against many imports.
We is now divided nine ways over, and variety of articles rationed
the Department. of
Agriculture, and by excluding all absolutely
must furnish-extra food to our
military forces.
We must ship the O. P. A., the Lend-Lease, the non-essential food from rationing.
Board of Economic Warfare, the
It would certainly give a mighty
large amounts of food to our allies
to support them in the war.
We Army, the Navy, the Man-Power lift of spirit to the housewife and
Commission and the W. P. B.
to the grocer. Also, it would save
must realize that there is a min¬
The recent addition of the ninth some of their time for other war
imum level in food for our 130,wheel even though so able a man duties. Also a good way to check
000,000 civilians without impair¬
as Mr. Chester Davis as Food Ad¬
inflation is to let food luxuries go
ing their physical and moral re¬
ministrator does not make a food to the highest bidder. That would
sistance.
/; :
administration.
The food func¬ spigot off spare money and get it
And we have also pledged our¬
channels
where
the
90%
selves to hundreds of millions of tions of all these agencies must into
be moved into' his
office.
He profit taxes can bite into it.
r
people in the world that they will
Eighth.
We should recognize
be
rescued
from
the
terrible must have the right to hire and
The
Food
Administrator that processing and distributing
famine which has been brought fire.
Without this

more

We must

major burden of
the world's food front falls- on the
North American farmer and the
American
consumer.
We must

increase in farm machinery.

of increasing

bewildering.

authorized a modest
One

The W. P. B.

was

etables.".
,

They were not accepted

certain elemental facts.

realize that the

a

-

monstrous enemy.

action there will be

peace.

We

must realize

that this food

shortage will last fop a minimum
of four and possibly six years.
These
But

are
we

ler.' '■

stupendous burdens.
have an answer to Hit¬

be Secretary of Agri¬ foods are righteous and necessary
the importance of callings. Thousands of small firms
food in the outcome of the war are being driven out of business.
and peace should be recognized by It would help win the war if lefthis appointment to the new Office wing reforms in our food economy

must today
culture.

And

of War Mobilization.

Second.
under

were

Decentralize the work

State, municipal and county
In no other way

administrators.

suspended for the duration.

We should establish war commit¬
tees in all the

processing and dis-.
They should be-

tributing trades.

can farmers' and consumers' needs
We can ration down our own
given
major responsibilities in
consumption further with good be adjusted to our varied local keeping the flow of food moving
to the right spots.
They could
management., And we can make conditions.
authorities in several leading farm
sure that we do not lose the war / Third.
Increase the manpower greatly assist State and local of-:
States. These reports indicate that
on the food front if we
stop the On the farms to a higher level ficials in policing the trades.'They,"
the 4% increase is likely to van¬
They,
degeneration in agriculture and than before the war and plant 40 tpo, have sons in the war.
ish.
And the indication is that
bring in a far greater production or 50 million acres more in 1944 are just as patiotic men as law¬
we
shall have a normal, not an
in 1944.
We must-do it. -Other¬ than in this year.
On this ques¬ yers and economists. They are the
extraordinary, yield like that of
wise we are headed for a world tion of manpower I offer a sug¬ only people who know how. Their
last year.
If so, we will have a
trouble.
We have the resources gestion because we must have interest is to stamp out black
decrease
in
the national
grain
markets.
And their profits can
more skilled labor on the farms.
to do it.
crops
of anything from 10% to
be absolutely controlled.
As a foundation for
1944 we
Public pressure upon our farm
15% from that of last year.
The
| Enforce the condition of deal-^
outlook for wheat and rye is cer-j must get all that lost 47-000,000 boys" to • join ' the forces "is" very
To great. They are not slackers and ers' licenses so that they may deal
tainly a decrease of 260,000,000 acres back into cultivation.
only with another licensed dealer
bushels less than 1942, or at least do that, our authorities must de¬ do not want to be called slackers.
and then direct the railways and
cide whether they will spare the They
do not want their gates
26%.
"
.
trucks to transport only for li¬
manpower
and farm machinery painted yellow. They are doing a
We have increased our flocks
censed dealers.
This would stop
manufacture from other activities. great and indispensable service. If
and herds beyond our ability to
most of the black markets.
And we must begin now or again we are to save this situation, I be¬
feed them without the lost 47,000,Ninth. Such a system will avoid
it will be too late and too little.
lieve farm boys should be called
000 acres.
The agricultural ex¬
subsidies either to farmers or the
to the Army from the farms im¬
food
front
perts are estimating a shortage of "Organizing, the
trades or the consumers.
Subsi¬
mediately after this harvest: that
10% to 15% in full supply of feed means far more than just increas¬
dies will not stop inflation.
Sub¬
the farm boys should be called up
for our animals during the next ing acreage, manpower, and farm
sidies are-a delayed aggravation*
machinery.
It also requires wise from industry; that they should be
year.
We can get some feed from
The New York, "Times" proper-r
some
.military , training.
Canada.
But it appears that we co-ordination, of prices, of proces¬ given

sent to you an

independent view,
agricultural

I have canvassed the

•

.

Volume

157

Number 4184

THE COMMERCIAL & FINANCIAL
CHRONICLE

ly says they "do not in the least
deal

The Future Of The Oil

with

are

primary causes.
They
cleaning
a
room
by
sweeping the dirt under-the bed."

(Continued from

by subsidies?

It

is

Cargo transportation
by air is expected to be multi¬
plied by three or four.

supposed to

the

be

worker, but the worker
also the taxpayer.
So is the

is

farmer.

started,

war

And who is supposed to benefit

"On the railroads'

locomotives

And taxes are, sooner or

creasing

of diesel

use

constantly
before the

in¬

was

even

war.

2163)

page

DIVIDEND NOTICES

Industry

like

,

.

_

Economies being developed in fuel
cost and in maintenance and oper¬

Asia will

ating
trend.

that

with

the

cost

reduced.

the

attached

living has been
more painful
costly to take money out

tions

will

later.

break

down

to

adds

to

inflation

to

the

that'
Far

Price

sumer.

and

the

fixing based

re¬

con¬

on any

The great bulk of this

hauling must

money

and

pressure.

farmer

international

war

know

will be close

now

shipping.

done

be

At

the

by

beginning

of
the

War

increased

I

to

about

"But

50%,

the

This

all

of

world

men

another

us

live

can

be mailed.

too, will continue to de¬
velop in the post-war world. Af¬

tion trades

ter

responsibility

commodities

and

will

in

end

the

increase prices and black markets.

Likewise, subsidies

favoritism

of

weapon

become

can

punishment in the lands of the
huge
bureaucracy. ' They
will
sooner

If

later

or

these

lead

scandal.

to

the

operating mer¬
chant tonnage seems likely to be
war

preponderantly oil-fired.
"Thus transportation

a

of

or

the

in

"Fields

of

food

will

The

use

farm

to

ing

purposes

to

retailer

and

will

the

to

be

consumer.

restrained.

better

markets

for

The

has

the

as

our

and

over

beyond

better

conve¬

pent-up

States.

considers only

within "the

In

the

world

borders, it seems
highly developed

that

demand

home construction is met.

new

And above all, farm
production will be stimulated, not
But

proved

must

areas

also turn to greater use

absolutely

port and power.

the

assure

maximum

"We

of trans¬

-

"That

happen

the

responsibility

American Business.

of

Standard Oil

world

of

tomorrow."

production of America.
Let

the

me

only

defeat

inflation, to decreased
hardship in our homes, to assured
support of our Allies and to peace
for mankind.
i
.

,' • If those in power

and those not

in power shall have wisdom, im¬

placable resolve, a spirit of sacri¬
fice, the field of America will
blossom

with

that will

life

abundant

an

vast human life in

save

world given to

a

human destruction.

half

million

went

on a

of

coal

miners

general strike

on

who

Tues¬

day, June 1, returned to work on
Monday, June 7, following the
adoption by the policy committee
of

the

United

Mine

Workers' of

America of the recommendation of
John L. Lewis that this action be
This

taken.

expire

on

strike truce will

new

June 20.On June 4,

Secretary of the Interior, Harold
Ickes, Federal Operator of the
coal mines,-released a letter he •

Combined

war

and

to

Mr.

"As

said:
mihes

on

in which he
operator of the coal
Lewis,

behalf

of

the

United

States
you

Government, I expect that
will direct the members of the

U. M. W. of A. to return to work
on

the

theatres.

civilian

de¬

mands

are beyond our productive
capacity to meet fully. Further¬

while the peak

more,

may

be

near

from the point of view of volume,

it

might be

from

the

year

a

or

more^off

point of view of time.

Capacity Production Still
Indicated

.y

in the first place, the
prospect is for a further rise in
industrial

production, even though
gradual or irregular, and some¬
what limited.
Secondly, no sig¬
nificant

and

decline

the

while

the

in'

is

prospect

continues

war

available

global,

labor

the end of the strike,

force

income

also

will

continue at

extremely high levels.
Indeed, "except for irregularities

caused by reconversion to .ivilian

it is at least probable that
neither the expected ending of the
uses,

in

will

peace

extended

necessarily

and

heavy

cause

decline

in

highly im¬

in

the

offer

an

&

North Western in¬

interesting situation, ac¬

Hust,

61

Broadway,

New

City, members of the New
York Stock Exchange.
Copies of
York

be

obtained

this

circular

upon

request from the firm.

may




Reserve

of

1942.

about

In

15%

from

1941

to

normal

times, greater
business activity, in which indus¬
production

portant

higher

lower and condi¬

normal, earnings sub¬

stantially higher than those
could

well

now

accom¬

industrial production (and
general business activity compar¬

pany

on

a

normal

basis to

production)

indus¬

substantially

below current levels.'

'■K.W;

.

,

Conclusion

_

Though

industrial

production

is

element,
earnings.

the

may

not be far from volume peak,
utilization

most

im¬

would
mean
Of course, the

relationship between busi¬
ness activity and
corporate earn¬
ings has been greatly distorted by

of

capacity

manpower can be expected

the
to

global
the

Index,

normal

cording to a circular now being
distributed by Pflugfelder, Bampton

Federal

against 156 in 1941. Yet corporate
earnings showed an average de¬

trial

4V2S of 1999 "when issued"

are

full

And there is another

cline

more

able

war

lasts.

production

and

while

Closeness

peak

has

corporate

not

earnings

standpoint, though effects
in

be¬

as

industry and industry,

individual

important.

companies,

may

or

be

that

market

prices

for securities tend to give
weight

only to present factors of

duction and earnings, but also to

gin variations

future

factors

trends

and

taxes, and by profit mar¬
arising from such
as
price ceilings, produc¬
tion limitations, unfamiliar prod¬
ucts,
and
government
contract

various

such

post-war

as

post-war

positions of

industries.—Economics

Investment

considerations.

share

a

levelling out of indus¬

trial production meed not be

sig¬

ties

Common

of

the

of

close

on

Stock

business

of,
on:

:

L. G. HANSON,

GAS

AND

THE TEXAS

pei

the

Class

A

1943.
meeting a
(25c) per share

same

cents
B

dividend of twentywas declared on the

Common

Stock of -the
Company, for
ending May 31, 1943, payable bj
25, 1943, to stockholders of record

quarter
June

of

the

close

of

business

G.

MARGAV

W.

OtL

June

The
OIL

Board

the

of

of

Apni

The

of

has

the

this

twenty-five

stockholders of
June 19, 1943.

record

E.

D.

Texas

clared this

share or two per
value of the shares

per

par

Company has been de¬

day, payable

on

stockholders of record

as

July 1, 1943,
shown by the

books of the company at the close of busi¬

June 4, 1943. The stock transfer
'
.;

ness on

books will remain open.

L. H. Lindeman
May 19. 1943

Treasurer

at

the

June

1,

TABLET

on

of

business

&

STATIONERY

CORPORATION

declared
share

a

close

WESTERN

MARGAY

day

cents

OLDENBURG, Treasurer.

Oklahoma,

50tf

on

52

outstanding stock of the corporation oi
160,000 shares provided by amend¬
to' the' certificate
of
incorporation oi
27,
1926,
payable
July
10,
1943,
to

Tulsa,

of

1943.

issue of

ment

(2% )

cent

CORPORATION

Directors

CORPORATION

dividend

15,

KNOUREK, Treasurer.

DIVIDEND NO.

the

A dividend of

to

the

COMPANY

163rd Consecutive Dividend paid
by The Texas Company and its
predecessor.

ELECTRIC COMPAN1

Common Stock of the
Company, for the quarter ending May 31, 1943,
payable by check June 25, 1943, to stockholders
of
record
as
of
the
close
of
business
June

a

Treasurer.

JOHNSON, Secretary.

ILLINOIS

on

Notice

is

hereby given that a dividend at
the rate of $.50 per share on the issued and
outstanding snares wlcnout par value of tha
Common Stock of Western Tablet & Stationery
Corporation
has
been' 'declared
payable
on
June 30, 1943, to the holders of record of such
shares at
the close of
business on June 18,
.

1943.

■

E.

1943.

H.

BACH, Treasurer.

Nehemiah Friedman With
Abraham

&

and

Dept., National Securi¬

New York

Research

City.

Corporation,

Arbitrage Dept.

Nehemiah
The Milk Wagon Drivers
Union,
an A. F. of L.
affiliate, on Friday,

June 4, agreed to comply with the
skip-a-day delivery plan and per¬
mit

the

National

to

Board

settle

War

Labor

its

dispute with
the milk companies in Metropoli¬
tan New

York, Westchester Coun¬
ty (N. Y) and Northern New Jer¬
after

one-day milk drought.
loaded to
capacity
rolled through the City of New
York on
Saturday, June 5, al¬
though half of the doorstep deliv¬
sey,

Milk

eries

by one of the
larger milk companies for Man¬
hattan were tied up by untractable
drivers

who

appeal

from

refused

Mayor

to

heed

F.

H.

an

is

now

&

Co., 120 Broad¬
way, New York City, members c»f
the New York Stock Exchange, in
their arbitrage department.'
Mr.
Friedman in the past was trading

for Albert Fried & Co.,

manager
and

was

with Gearhart & Lichen-

stein and M. S. Wien & Co''.

New Faroll Bros. Partner

a

scheduled

Friedman

with Abraham

trucks

Winfield
become

members

Chicago
June

Exchanges,

Mr.

his

make

Schweickart

Stock

15.

firm's

H.

will

partner in Faroll Bros.,
of the New York and

a

headquarters

New

York

of

as

Schweickart

wil

at

the

office,

29

Broadway.

La-

Guardia of New York and orders
from the union.
On

,

r

Peoples Lt. & Pr. Interesting

/

Sunday, June 6, the city's
supply crisis appeared to

have

passed

union

as

members

of

the

operated fully in enforce¬

of the skip-a-day order for
doorstep deliveries.

ment

An

interesting circular on the
stock of Peoples Light
& Power Co. has been prepared
for distribution by Doyle, O'Con¬
preferred

&

Incorporated,
135
Street, Chicago,
Copies may be had from the

nor

South
111.

Co.,

La

Salle

firm upon request.

,

Hincks Bros. Acquires
F. T.

Situations of Interest

Phillips Business

WATERBURY, CONN.—Hincks
Brothers & Co., Inc., is acquiring
the

investment

Francis T.
T.

liam

the

&

business

of

the

Phillips Company. Wil¬

previously with
Company, has be¬

Moore,

Phillips

come

Thus

business

1943.

1943.

June 4,
1943, declared a quarterly dividend
thirty-seven and one-half cents (37y2c)

of

pro¬

wartime

factors

June 1,

It should likewise be

remembered

not

Wis.,

The Board of Directors of Louisville Gas and
Electric Company
(Delaware) at a meeting held

milk

general

tween

of

:

holders
at

June 22,

OFFICE OF

LOUISVILLE

necessarily wide significance from
the

to

record

Company

are

when taxes

trial

close

present

much higher. But it is worth con¬
sidering that, at some future time

an

Collective-bargaining negotiations
were
immediately resumed (on
June 7) betweep the miners and
the operators, but, it was reported,
ran into a snag over the question
of portal-to-portal pay.

The Chicago

extremely low fig¬
standards, yet
both years showed high corporate
earnings. At present, of course,
comparable levels from an earn¬
ings standpoint would have to be
by

Europe before it ends in

the East, nor the final victory and

portant consideration. In 1942, in¬
dustrial production averaged 181

come

These

ures

being shown

national

to

earnings after
taxes, such high rates would also
cushion earnings declines.
■, : ; ;
In 1929, industrial
production
averaged 110. In 1937, it averaged

that

wage \ controversy will revert to
the National War Labor Board.

Situation Of Interest

entirely)

even

tions

.

war

Secretary

THEO.

further rise in production
not be significant either.

high tax rates have pre¬
high pre-tax income from
being carried through (partly or

the

of

!

as

as

at

There also has been declared a regu¬
lar quarterly dividend of 75c per share'
on the Common Stock, payable
July 15,

$3.00 per share upon the out¬
standing Common Stock of this Company havbeen declared payable July 1, 1943, to holder:
of record at the close of business June
12, 1943

check

vented

record

July 15, 1943.

of $1.75 per share upon the out¬
Preferred Stock of this Company, and

dividend

a

a

should, apart from strikes, con¬
tinue fully employed. This means

the

Chicago North Westerns

Just

$1.12J/Z"per share
Preferred Stock,
have been declared- pay¬

Cumulative

Series,

dividend

nificant from the earnings stand¬

point;
might

113,

Hence,

production.

Monday, June 7."

With

both

Asiatic

L.

sent

in

and

Goal Strike Called Off
Nearly all of the approximately

continues

war

European

the Cumulative Preferred
Series,
and
a
regular

able August 1, 1943 to holders of Pre¬
ferred Stock of the respective series
of

Dale Parker

Racine,
A

standing

the

2163)

page

the

on

4Vz %

share

per

on

iV+Vc

Incorporated

Class

Hearing Its Peak?

(Continued from

:

1943

five

Industrial Production
the

quarterly, $1.25

share

quarterly dividend of

August 15, 1943, to holders of
close of business July 20, 1943.

J. I. Case

At

say

of

share'

per

June 3, 1943

15,

again that that is
road that leads to the

A regular quarterly dividend of
$1.06 \'i

Stock,

on

--v.'.

on

Company hopes to fulfill its share
of that responsibility in plans for
the

Philip Morris & Co. Lt^: inc.
per

Stock, 5% Series

CHICAGO

,

,

is

that

let

cannot

again.

of

inevitable

jobs—

assure

when the numbers of unemployed
reached critical high levels.
;

de¬

United

outside

methods of food control, we must

failed to create and

New York. N. Y.
June 4, 1943.

has

share

per

57, quarterly, $1.25

No. 46,

the

years

prise in this country has created
jobs for the people of this coun¬
try. There came a time when we

stifled.

'

150

Directors

;

of oils for domestic heat¬

velopments

and worry.

than

more

of

6% Preferred Stock, Series A

democratic system of free enter¬

are

"All of this

housewives will have less trouble

,

Board

5% Cumulative Preference Stock

men

also opening up.

evitable

be blacked out.

No.

record at

"For

of

16th.

ELECTRIC

Cumulative Preferred

it

than

nient and desirable. Its expansion
in the post-war fields seems in¬

They will be lower, for the black
can

other

demand

&

67, quarterly, $1.50

payable

and ambitious.

transportation

Prices

this

mands for

lines, policies,
and organization be adopted then
naturally from
processor to wholesaler,

great
task. ; For
a

jobs—and
ladders out of those jobs into bet¬
ter jobs for men who are able

petrolem.

June

on

M- O'CONNOR

declared this day the following dividends:
Cumulative

No.

give

stockholders

LANGLEY, Treasurer.'

CORPORATION

freedom of opportun¬
ity starts with a job. No political
philosophy can work for long if
not

C.

COLUMBIA
GAS

man-,

does

W.

to

by ' automobile, ' airplane,
bus,
truck, by diesel-powered train or
ship—will expand rapidly its de¬

broad

flow

whether

—

to

business

1943.

Call for

which

"American business has

every

of

out¬
pay¬

PHILIP MORRIS"

eco¬

chance

ways

in

1943,
of

1943,
the

cn

Secretary

can¬

Four Freedoms.

clog the flow of

w

June 4,1943

together under the

trend,

close

of

Company,

this

payable August 2, 1943, to
stockholders of record at the close of
business July 6, 1943. Checks will

The

better

out

26th,

the

at

share

of

pany,

;
;
'
"The post-war world will offer

to

record

this Company; at
declared an interim

quarter
a

stock

Y.

Jime 9' 1949"

■

not be measured in terms of

work

on

j($.65)

seems

,

post-war

such concept will strangle produc¬
tion. Its operation in the distribu¬

will

June

nomics alone.

oil-

had

the

able

Cents

N.

363

of

day,

second

capital

dividend of
was declared

the Cumulative Preferred Stock
Convertible 4% Series A of the Com¬

.>ty;

us.

this

standing

1943, a
dollar ($1) per share

York,

NO.

Directors

the

S:xty-five

4,

on

"This, then, is the world of civ-

ocean

only-5% of
world's
ship tonnage was
burning. At the beginning of
present war this percentage

World

tomorrow.

of

held

for

June

one

neighbors

to be ahead for

or

borrowing,

banks

ef¬

all nations.

serious, however, is the

more

sult

the

the

war

ilization-on-the-march that

sooner

Government

and; debt

After

part of the

a

pent-up demand for the exchange
of commodities direly needed by

Moreover, subsidy

increases

as

A
founda¬

subsidy

on

shipping, too, has greatly

Board

meeting

dividend

meeting of (he Board of Directors

a

held

longer be dependent
roads and railroads for their
developments. They can now be
opened up through the use of air
transport.
People we scarcely

trade will be called upon to meet

pocket than it is
get it out of the price pocket.
based

this

At

New

DIVIDEND

The

no

to

tax

wage

speed

'■

,

increased

fort.

will

expense

"Ocean

of

It is both

and more

of

illusion

an

29
a

upon

other

•

Mining Company
Broadway,

NUMBER

DIVIDEND

undoubtedly face an
development.
"For example, mineral wealth
in such parts of the world as Can¬
ada, South America, Africa and
of general

NOTICES

New York & Honduras Rosario
120

PREFERRED

ered remote

later, increased by just the same
amount as the subsidy.
Subsidies
consist of taking money out of
one pocket and
putting it into an¬

DIVIDEND

THE ATLANTIC REFINING CO.

"What is probably more impor¬
tant, areas traditionally consid¬
era

2177

associated with Hincks Bros.

Co., which maintains a Waterbury office at 111 West Main St.

Federal Machine & Welder Co.
and Purolator

attractive

Products, Inc., offer
possibilities, according

to

Reynolds & Co., 120 Broadway,
York City, members of the
York Stock Exchange.
In¬
teresting basic reports upon these
New

New

companies

may

be had from Rey¬

nolds & Co. upon request.

THE COMMERCIAL & FINANCIAL

2178

The Business

Says Political Stability
Is Necessary For Economic Security

Dr. A. Loudon

to the United

Loudon, Ambassador of the Netherlands

A.

Dr.

address before the Economic Club of New York at
Hotel Astor on June 8, contended that the main lesson of the

States, in

an

Thursday, June 10, 1943

CHRONICLE

J

Man*s Bookshelf 1

/O

Info War Bonds

AN

—

Secretary of the Treasury Mor- speeches delivered at a public
there can be no economic security without genthau declared on June 2 that meeting held under the auspices
political stability.
The New York "Times" of June 9, from which by the end of this year the aver¬ of the Citizens Conference on In¬
the foregoing is taken, indicated the further remarks of Dr. Loudon age American family should be ternational Economic Union, 105
investing about 25% of its net in¬ East 22nd St., New York Cityas follows;
"If
international
security
is$-———~
tt~
~
~ come after taxes in war bonds. Paper—250.
■ V;/
■, v'///•/ ■

the

25

last

selfselfish,
abate," Dr. Loudon said.
for

struggle

the

sufficiency, so aggressively
may

well

"On

the

witness

the

period,

prepared to see
mad pursuit of autarchy' re¬
must be

declared that among

Dr. Loudon

which will develop
after the war are currency infla¬
tion and the resultant threat of
exchange dumping. He said it is
vitally important that the United
Nations agree on some plan for
international currency regulation
dangers

to lessen this danger.

"If chaos is to be

the princi¬
pal currencies of the world will
have to be assured," the Nether¬
lands envoy said.
"This does not
of

could not be modi¬

currency

fied if it

external value

the

that

mean

seriously strained.

were

On the contrary,

that

stood

a

it is now under¬
certain
flexibility

which could not be achieved under

standard is desirable. V

the gold

"But it does mean that the par¬

ticipating
the

will

governments

deavor to abstain from

en¬

disturbing

of international ex¬
which they will have
agreed, and that no country will
modify the exchange value of its
own currency without prior con¬
system

change

on

sultations with the other nations."
chances

The

of adequate
The

fore

opportunity

post-war

Holland

that

are

country by the end of the war, and
several other nations
may
find
the

Dr. Loudon said.

same

position,

He pointed out

that this was bound to cause them

limit their imports to

the for¬

eign exchange which they could
buy with their exports.

more

people

throughout the world.
The engineering developments
that will help to bring this about

shape in the
of today. De¬
velopments forced by war, many
of them now secret, will be con¬

are

already

for

verted
the

war

more

taking

planes

commercial

to make

use

after

flying safer and

/■'/;

practical.

Aircraft Com¬
pany, for instance, the engineer¬
ing force which created and de¬
veloped the Flying Fortress, the
Stratoliner, and the largest Pan
At

the

American

Boeing

Clippers, has been con¬

stantly enlarged until it now num¬
bers not hundreds but thousands.

Van

several

engineers

are

directions

—

passenger

transportation, private flying, first
class mail,
air express and air
air freight. Not all should be ex¬

pected to mature immediately and
suddenly,
the
development
of
these fields will have to come not

merely from desire,
economic justification.

national




mismanagement of price ceilings
and

from

fi¬

least

at

F.

the

for

income

re¬

&

and

H.

L.

L.

H.

Cornelius

S.

Sheridan

Lichtenstein

Dillon

Eastman,
Scott,

Co.

&

Mason,

&

Horner

Bendix,

Inc.

Luitweiler & Co.

Gertler,
Stern,

Lauer

Eiam

Co.

&

ducted

Miller

Asiel

&

King

Ritchie

A.

B.

Upham & Co.
Pizzini

W.

Abraham

Winkler

C.

J.

&

Co.

&

&

Co.,

Marks

Co.,

Inc.

L.

Co.

&

M.

40

Laurie

&

Co.
Willers

&

Bureau,

Inc.

Co.

Broadway Gym & Health Club

&

Ames &

Dominion

&

Government to increase food pro¬

Com¬

Co.

Securities

Bagdad

creating

an

have

been

agricultural

merely added

estab¬
Inc., Garden City, N. Y.— lished
during the 30's and de¬
Cloth—$2,00.
/.:7\/7''\7yZ7;7' signed to restrict production. '
"These restrictive programs, al¬
TRANSITION FROM WAR TO
though modified, are still applied
PEACE'
ECONOMY—Report
of
and limit the acreage of the bestthe Delegation on Economic De¬
adapted crops than can be grown,
pressions Part I—League of Na¬
thus
preventing
farmers from
tions
Publication
1943. II.A.3—
freely organizing their resources
Columbia University Press, New
for maximum production of essen¬
York, N. Y.—Paper—$1.00.
programs

tial foods."

WORLD TRADE IN AGRICUL¬

C.

PRODUCTS—Henry

TURAL

Fifth Avenue,

New York, N. Y.—

4.;

///

of

ciation

currency—

paper

a

Shepard Pond — reprinted from
Numismatist, January 1935 by

'

'

■

The

report, recommending / a
cutting down to a minimum on
animal

products such as meat,
in favor of greater
human use of wheat, beans, soy¬
milk and eggs

beans, corn and similar products,
and in liquidating part of present

livestocks,

urged that /the ap¬
proach should be made on a truly
scientific basis.

/

:

The

These ciety, Boston, Mass.—paper. J'

Washington,

in

L

THE

RADIO NETWORKS AND

under

12 Federal Re¬

Corporation

date June

banks.

stockholders

Fund committee, was

named Vice-

WARTIME
PRICES AND TRADE BOARD—
THE

OF

REPORT

Hession Sentenced

artificial rise in price

James Ward and Howard Phil¬

financial ana¬

been sentenced in

eral

Court

revoked

houses in the New York

similar

tion of the Securities Act in con¬

of Superior

& Duluth

Central Railroad.
Arnold R. Hanson and S. Well-,

Hanson, partners in the New

lips, also defandants in the case, York securities firm of Hanson &

York

to

90

of

The

1933.

charges

were

lodged in the
Federal Court in connection with
to

in

dealings
Distilling
Clarke

was

those

stock of the Kinsey
Company,
of which
President at one time.

is

said

the

ued

since

navmpnt

the

been

membership

nf .nfiSPSSiYiPntR.

"Journal

which

8,

;,/

Anthony Lester, business agent
5, Packing House Work¬
ers' Union, who made the an¬
nouncement, said the firms have
done 70% of the slaughtering of
kosher veal and lamb sold in the

;'■/.

city.

>;"•

;

■

Much of the veal and lamb dis¬
tributed
been

the closed firms has

by

supplied

Army

and

Navy, as well as for civilian

con¬

the

to

sumption.

//

/

/

;

;

*

/

Lester listed the firms that shut

down

follows:

as

Eastern

Veal

& Mutton Co., J.
Co., Manhattan Veal
& Mutton
Co., D. Blumberg ■&
Sons,
Emanuel Straus, Victory
Veal
Co., American Veal Co.,

Rothman

&

Feldman

Brothers

firm—there is

a

Zucker & Friend.
:

(14th St. veal

beef firm by the

name), Charles Beekman'&

same

An eleventh

,

„

firm, Miller Abat¬

toir, in North Bergen, N. J., \yill
close at the end of the

week, Mr.

Lester said.

a

of

these

slaughtered 20,000
means

men

wholesale

said.

»

closing

week,

had 3,000

cancelled for non-

June

for Local

which

Hanson, were acquitted of similar already

of

added:; •//■.■; •.,//

National Association of

the

to

York"

New

American"

The

Securities Dealers were discontin¬

close this
price ceilings,

expected

week because of the

Proceedings
to
determine
whether he should be expelled
from

City

in the last few days and an¬

prison

in

Act

nection with his manipulation of

April by a Fed¬

New

in

and fined $1,000
on charges of mail fraud and con¬
spiracy to violate the Securities
days

charges of mail fraud and viola¬

mer

1939, to

Commission has formally

lyst, was sentenced to prison for
a year and a day in Federal Court,
following
h i s
conviction
o n

price

3,

registration of H. Vaughan
Clarke
of
Philadelphia
as
a
broker-dealer.
Mr.
Clarke had

by Division bonds of the Wisconsin

company's stock.

September

the

Chairman.

the

ter

other

Regarding this, the New York
Tribune," in advices from
Newark June 2, said:
In his address to the bond-sell¬

John W. Hession,

independent veal and Iamb

Ten

packers have closed their slaugh¬
area

12, 1943.

March 31,
1943, for the Dominion of Canada
Walter F. Saunders, Dominion
ing group here, the Secretary for¬ —Printed by Edmond Cloutier,
Securities Corporation, Chairman;
mally merged the War Savings
Jerry Aal, Abraham & Co.; Ches¬ staff and the Victory Fund com¬ Ottawa, Ont., Canada—paper.
ter de Willers, C. E. de Willers & mittee of New
Jersey, setting up
SMALL
LOAN
BUSINESS,,
Co.; Michael J, Heaney, Joseph the
combined
organization
on
THE, and how its helps the people
McManus & Co.; Thomas A. Lar- State
lines.
Colonel
Franklin of
New York State —New York
kin, Goodbody & Co.; John J. D'Olier, President of Prudential
State Association of Small Loan
O'Kane, John J. O'Kane Jr. & Co.; Insurance Co. and former Chair¬
Companies, 60 East 42nd Street,
Harry Peiser, Ira Haupt & Co.; man of the New Jersey War Sav¬
New York City—paper.
Fred Preller, Eastman, Dillon &
ings staff, was appointed to head
Co.;
Abraham Strauss,
Strauss the combined organization, and
Bros.; Edward Thompson, Smith, Horace K. Corbin, President of
SEC Registration Revoked
Barney & Co.; and Robert Torpie, Fidelity Union Trust Co. and for¬
The
Securities
and Exchange
Merrill Lynch, Pierce, Fenner & mer head of the local Victory

of the

to.

pany,

ASSIGNATS, THE—The depre¬

"Herald

Members of the Committee are;

fraud

duction

on

formulated

serve

Co.

King & King
E.

Doran

business and fi¬ courtesy of the Board of Gover¬
arrangements nors, American Numismatic Asso¬
streamline the State's ciation—Boston Numismatic So¬

leaders

organized

Harvey Fisk & Sons

A.

son—Doubleday,

EditionGib¬

Hugh

and

ities

Jacques Coe & Co.
Gruntal

Hoover

Herbert

■;■•,.

under

Quotation

de

PEACE, THE—Revised

\

"Obviously,"
it
pointed
out,
capacity to assist the rest' of
the world is even more gravely'in
jeopardy," /'/.,• /%/';,
77/77:%]
"Steps taken by the Federal

LASTING

OF

PROBLEMS

control

-

"our

' fj

Washington, D. C.—Paper. %

crop

program. /,..;*//

THE—Harold G. MoulBrookings
Institution,

which bond-selling activ¬ FEDERAL
GOVERNMENT—
throughout the country are Thomas Porter Robinson—Colum¬
to be headed in each State by a bia
University Press, New York
single committee instead of being City—Cloth — $3.50 — publication

Marsland

E.

Department."

to

plan

Cowan

120

ton—The

and

arrangements stem from a master

Co,

&

National

C.

it will

bond-selling organization.

Co.

&

LIC DEBT,

alteration of the

an

price

present

Jersey

New

made

Saunders

Stevenson

A1

.4

that have been made by the

nancial

Macdonald

F.

not

Morgenthau gave the inter¬
view in the Essex Club here this
afternoon after he had addressed

Bertch

Stamm

might

source

Mr.

Stalle

Carl

Arthur
A.

&

Abel

I.

under

meat diet'to

a

13,500,000 residents to make the
change to a cereal diet without in¬

PHILOSOPHY OF PUB¬

Cloth—$3.50.

Treasury

Aal

Carl

plan

from

moves

war

grain diet," the report said. '
It emphasized that Federal ac¬
tion is needed to enable the State's
a

Taylor and Anne Dewees Taylor
—The
Macmillan
Company, 60

veys

Karl

the

at

understood,

Inc.

Aal

Alfred

-at

unless there is

NEW

This has been established by sur¬

Co.

Bampton & Rust

Saxton

A.

the

V

'

•/"As is always the case, a nation

juring their health.
%
Victory
gardens,
home * food
preservation and the stepping up
torical
and
Political
Scienceof productive efforts of farmers
Johns Hopkins Press, Baltimore,
will be of no avail, the EFC said,
Md.—Paper—$1.50.
: 7

not make
much difference to people who
have
been
investing
regularly.

is

Co.

&

Feibleman

J.

G.

Co.

&

& Co.

Gibb

H.

Pflugfelder,
T.

Inc.

Co.,

Rieber

George E.
Harris

Co.

&
&

Secretary Mor¬

bond
purchases
by
the "little
man," he replied:
"At the beginning, I think, we
will meet with a little opposition.
But after deduction at the source

Co.

Charles

Newark

from

hamper his efforts to obtain wider

Collin, Norton & Co.

J.

goal is to

which income taxes would be de¬

Co.

&

Stearns

of

institution

Buell

F.

our

genthau as saying:
Mr. Morgenthau explained that
"family
income" meant income
remaining
after
deduction
of
taxes.
Asked whether he thought

Jr.

Marks
B.

if

indicated

further

Hays,

W.

more

and

June 2 to the New York "Times"

Stern

William

should

they

advices

Special

Scheffey

W.

Arthur

V

& Co.

Schwamm

Frank

Samuel

fact,

TRUSTEESHIP—Nor¬
Stewart Heaney—Johns Hop¬
'University Studies in His¬

"scream of crisis."

be met."

Harder

William

In

must invest

Co.

F.

earning

said its contents

Governor Dewey

PUBLIC

kins

workers

studying the first report
to
him by the EFC,

submitted

City—Paper—$1.00.

York

VV:^/U-: '"•%'4'^

After

IN
STATES—An Or¬

UNITED

New

man

pect.

say:

ganization
Directory—Twentieth
Century Fund, 330 West 42nd St.,

should come

those

8, which also had the following' to

PLANNING

WAR

POST

the New

said

control,

crop

York "Journal American" of June

almost 25% of

or

Co.

Bros.

Tellier

B.

Inc.

& Co.

Winter

H.

Lober

Co.,

&

Bernheimer

F.

D.

POST¬
WAR
PROBLEMS — Twentieth
Century Fund, 330 West 42nd St.,
New York City—Paper—500.

purchases of bonds by indi¬

were fined $1,000 each and given
Air cargo, suspended sentences of 18 months. charges.

but

war

each dollar is not too much to ex¬

Birkins

Edwin

M.

Noel and Co.

Alstyne,

engaged in
many phases of research and de¬
sign and detail engineering de¬
voted to the improvement of mili¬ Beane.
tary airplanes to speed the competion of the war.
Scores of en¬
gineering fields, electrical, hy¬ Sentenced In Stock Fraud
draulic, • acoustical,
radio,
re¬
Edmund
B.
Bronson,
former
frigerating, architectural, metal¬
lurgical, structural, aerodynamic, head of the Bagdad Copper Cor¬
and many others are represented
poration, was sentenced in Fed¬
-—a wealth
of engineering talent
eral Court to 18 months in prison
to be one day unleashed on the
on conviction for mail fraud, vio¬
job of making better products for
lation of the Securities and Ex¬
a peacetime world.
The opportunities for develop¬ change
Act and conspiracy in
ment of post-war aviation lie in
connection with a scheme to de¬
These

essary to complete
our
nancing needs for 1943,

"From

Bacon,

.•military

by Governor Dewey's Emergency

WARTIME FACTS AND

THE

$1,000 to $5,000 net, who will have
seven-eighths of all the current
individual
savings, 25 cents of

Wood, Gundy & Co.

and

•/■%*■

$45,000,000,000 still nec¬

viduals.

W.

more

<%;

;

■

"Of the

mainder of the year,

J.

(Continued from first page)

lic, said:

from

Employees—A. L. Stamm & Co.

make aviation of more direct ser¬

investments by the pub¬

$18,000,000,000,

Employees—Abraham & Co.

to

N. J., after attending a
luncheon meeting with New Jer¬

the

Bernard,

vice

this state¬
conference in

press

Newark,

a

united world.

a

changed positions from
creditor country to a debtor

in

be¬

aviation industry
a
better, more

build

to

serve

E.

themselves

a

for larger

be that of making

will

us

will have

to

transportation.

(Continued from page 2162)

1

!

avoided, mone¬

tary stability between

■*'any

hand

extensive opportunities

are

war-developed

sumed."
the

there

other

the

On

concerned.

at

ment

was

Food Commission on Government

made

Secretary

The

a

more

occurred in the inter-war
we

for instance, has competitive limiweight and bulk are

tations where

should we
in many foreign countries that are
sey leaders of war finance.
Mr.
situation of
under-developed because of lack Morgenthau, explaining the need
insecurity such as
hand,

other
once

international
then

State

,

,

achieved,

which is being

is that

years

growing
food
shortage
felt, in New York
blamed
on
June
8

The

ECONOMIC
UNION OF NATIONS—Report of
WANTED

firms,

carcasses

the loss of jobs for

in the slaughter houses,
and

retail

shops,

he

Volume

157

Number 4184

THE COMMERCIAL & FINANCIAL CHRONICLE

Calendar of New
'

OFFERINGS

ARMOUR

&

CO.

OF

&

Co.

of

Armour

•

registration
1%

year
due

Delaware

statement

for

cumulative

April

1,

filed

has

$35,000,000

income

Street

and

a

&

35-

America

for

products

and

conjunction with their
ations.

butter

and

other, products..

In

packing oper¬
subsidiaries manu¬

cheese

and

various

000;

A: .'A: " / V-''
A'.)"
Underwriting—Kuhn, Loeb & Co., New
York, head the underwriting group. Others

to

be

supplied by
its

of

7%

preferred
number

offers

to

t^ian

stock

the..entire

allotment'

be

price-to be
The

of

been

fixed

to

public

by amendment.

exchange

offer

to

will

will

.

at

-

a

at

Chicago,
and
Bank
;of
America
A., San Francisco.
Proceeds—Company intends to apply the
debentures

cumulative
to

preferred

stock

of

of

amount

par

such

stock.

A-2
1

(4-29-43).

Armour

&

amendment
its

oh

the

f

•

issue

income

of

debentures

due

which

the

holders

shares

of

7%

ferred

stock

share

the

for

its

of

523,581

guaranteed
the

of

right

debentures

to

such

basis

of

of

preferred
if

debentures

desire

546,400

wholesale

and

other

by

at

The

each

with

of

held, subject to allotment
The offer to stockholders will

3

June

p.m.,

debentures

3,

taken

not

!

sell

the* names

subscribed
&

Co.,

of

upon

underwriters

listed

N.

Y.,

as

and

the

ex¬

follows:

$2,500,000;

amounts

Kuhn, Loeb
Boston

First

Corp.; N. Y., $1,500,000; A. C. Allyn & Co.,
Inc.,
Chicago, $500,000; Bacon,, Whipple
&

not

to

Chicago, $250,000; Baker,. Watts &
$150,000; Ball, Coons & Co., Cleve¬

Co.,

shares

thereof

cago,

$200,000;

$350,000;
Coffin

.

E.-

&

date

of

into

the

of

after

not

agreements

any

to

prior

registration

such

state¬

to

enter

character

effective

the

within

date,

and

Inc.,

Boston,

Drexel &

&

Dominick,

N.

Y„

N.

>

$100,000; J. J. B. Hilliard & Son, Louis¬
ville, $150,000; Hornblower & Weeks, N. Y.,
$500,000; W. E. Hutton & Co., N. Y., $500,000; Illinois Company of Chicago, Chicago,

Kebbon,

McCormick

&

Co.,

Chi¬

$250,000;- Kidder, Peabody & Co.,
$750,000; Ladenburg, Thalmann &
Co., N. Y., $750,000; W. C. Langley & Co.,
N.
Y.,
$300,000;
Lazard Freres &
Co.,
N.
Y., $750,000; Lee Higginson Corp., N.
cago,N. Y.,

Y.,

$1,000,000;

Lehman

Brothers,

N.

Y.,

$1,000,000;

Carl M. Loeb, Rhoades & Co.,
N.
Y., $300,000; Mackubin, Legg & Co.,
Baltimore, $100,000;
Laurence M. Marks
&
Co.,
Baltimore,
$200,000; 'McDonaldCoolidge & Co., Cleveland, $250,000; Mer¬
rill, Turben & Co., Cleveland, $200,000;
Milwaukee Company, Milwaukee, $250,000;
Moore,
Leonard
&
Lynch,
Pittsburgh,
$150,000; F. S. Moseley & Co., Boston,
$500,000;

Mullaney,

Ross

&

Co.,

Chicago,

$100,000; Maynard H. Murch & Co., Cleve¬

Stone

White,

Weld

&

Corp.;

Webster

and

& Co.; Clark, Dodge
Dominick;. Eastman,
Forgan & Co.;

&

Glore,

Co.;

Higginson

Fenner

&

Beane;

F.

S.

&

Co.;

Struthers

Wood,

&

Co.;

Stearns

& Co.; Auchincloss, Parker
A. G. Becker & Co.;
Blair
Coffin & Burr; Estabrook & Co.;

Harris, Hall & Co.;
Hayden,
Co.; W; C. Langley & Co.; Carl

$500,000;

;

Co.;

Lee

Redpath:

'& Co.;

Equitable
$200,000;
Esta-

Corp.; N.>Y.,
brook- &
Co.,
Boston,
$300,000; - Fahey,
Clark & Co., Cleveland, $100,000; Farwell,
Chapman & Co., Chicago, $200,000; Ferris
&
Hardgrove,
Seattle,:, $100,000;
Field,
Richards & Co., Cleveland, $150,000; First
Cleveland Corp., Cleveland, $150,000; First
of Michigan Corp., Detroit, $200,000; Glore,
Forgan & Co., N. Y., $750,000; Glover &
MacGregor,
Inc.,
Pittsburgh,) $100,000;
Goldman, Sachs & Co., N. Y., $1,000,000;
Graham,
Parsons
&
Co.,
Philadelphia,
$200,000; Grubbs, Scott & Co., Pittsburgh,
$190,000; Hallgarten & Co.,,N. Y.,! $500,000; Harriman Ripley & Co., Inc., N. Y.,
$1,200,000; Harris, Hall & Co., Inc., Chi¬
cago,
$350,000; Hawley, Shepard & Co.,
Cleveland, $200,000; Hayden,. Miller & Co.,
Cleveland, $250,000; Hayden, Stone &, Co.,
N. Y., $500,000; Hemphill,
Noyes & Co.,
N.
Y),' $500,000; Hill & Co., Cincinnati,

$300,000;

Witter

$200,000;

Securities

Co.;

Dominick
&

Bear,
&

$500,000;

Y.,

&

Lynch,; Pierce,

Co., Philadelphia, $600,000; East¬

man,
Dillon
&
Co.,
Emanuel & Co., N. Y.,

Kidder, Peabody & Co.; Ladenburg,

;Moseley & Co.; Paine,
Webber, Jackson
&
Curtis; Union Securities Corp.;
Dean

Curtiss, House & Co., Cleveland, $150,000;
Dempsey-Detmer & Co., Chicago, $100,000;
Dick
&
Merle-Smith,
N.
Y.,
$200,000;
Dominick

Co.;

Hallgarten & Co.; Hemphill, " Noyes &
•Co.; Hornblower & Weeks; W. E. Hutton
Co.;
Lazard
Freres
&
Co.;
Merrill

$300,000;

Rhoades

&

Co.;

Reynolds

&

Stone
M.

&

Loeb,

Co.;

Ritev

&

Co.; E. H. Rollins & Sons; L. F. Roth'schild & Co.; Spencer Trask Co.; Tucker,
Anthony & Co.; Wertheim &■ Co.;
The
Wisconsin

Weeks

Co.;

A.

C.

Allyn &

Co.;

Baker,

Harden; Alex. Brown & Sons;
Byllesby & Co.; Dick & MerleSmith; Graham, Parsons & Co.; E. F. Hut¬
H.

&

M.

ton

&

Co.;

Laurence

M.

Marks

&

Co.;

Schoellkopf,

Hutton &
Pomeroy; G.
H.
Co.; Bacon,
Whipple & Co.;
R. S. Dickson & Co.; F. I. du Pont &
Co.;
Emanuel & Co.; Equitable Securities Corp.;
Hayden, Miller & Co.; J. J. B. Hilliard &
Son; McDonald, Coolidge & Co.; Mitchum,
Walker

•

&

Tully & Co.;
Bonner

Biddle, Whelen &.Co..; Blair,
Central
Republic
Co.;

&

Co.;

Cooley & Co.

;

Cruttenden

Field,

\

&

Co.;

Fahnestock

&

Co.;

&'
Co.;
Granbery,
Lord; Hawley, Shepard & Co.;
Illinois Co.; Janney & Co.; Kay, Richards
& Co.; Kebbon, McCormick & Co.; A. M.
Kidder

&

&

Co.;

Mackubin,

Laird,.

Legg

&

Leonard

W,)H.

Newbold's

Rauscher,

Humphrey

&

Stein

Maynard

&

of

&

rill,

Co.;
Co.;

Co.;

Bros.;

&

Stroud

Corp.;

& -Co.;

Turben

Co.;

&

Stillman,
Co.; Whiting,

&

&

House

Folger,

Co.;

&

Chas.

Deane

Co.;
Co.;

&

Nolan

A. E. Masten &

&

Co.;

Robinson-

Boyce;

Yarnall

Curtiss,

&

Parrish

Co.;7 Singer,

Bros.

Stubbs;

Michigan

Kalman

&

Maynard

AlmFirst

&

Co.;
H.

Co.;
Mer¬

Murch

Co.;
Pacific

Company;

Watling, Lerchen &
Co.; Boettcher & Co.; Bosworth, Chanute,
Loughridge & Co.; Brush, Slocumb & Co.;
Butcher & Sherrerd; Ferris &
Hardgrove;
Ingalls,
&

Snyder

Co.;

&

Newhard,

Co.;
Cook

Johnston,
&

Co.;

Lemon

The

Ohio

$150,000; Newhard, Cook & Co., St.
Louis, $150,000; Ohio Company, Columbus,
$100,000; Paine, Webber, Jackson & Curtis,

Company; Piper, Jaffray & Hopwood; Put¬
nam
& Co.;
Reinholdt & Gardner; Geo.

N.

Stern

land,

Y., $500,000; Arthur Perry & Co., Inc.,
Boston, $150,000; Putnam &■ Co., Hartford,
$150,000;

Reinholdt & Gardner, St. Louis,

V.

Rotan

Burns,
V.

Rothschild & Co., N. Y.,
$200,000; Schoellkopf, Hutton & Pomeroy,
Inc., $200,000; Schwabacher & Co., San

Fahey,

Francisco,

L.

F.

$250,000;

Singer,

Deane




&

Co.;
&

Potter

Christie
J.

$500,000;

&

Bros.

$150,000; E. H. Rollins & Sons, Inc., N. Y.,

;

:

M.

&

Dain

Clark

Co.;

Ferris,

land

Corp;

Kirkland

&

Starkweather

Co.;

&

Geo,

Co.;

G.

&

Co.;

&

C. C. Collings & Co.;
Co.; R. L. Day & Co.;
& Co.; Farwell, Chapman &
&

Grubbs,
Co.;

&

Co.;

Scott

&

addition

an

to

working

by

H.

June

4,

1943,

Byllesby

&

'

-V,".. V

at

Co.,

100

and

Inc.,

asso¬

a

willingness
whereby" the

arose

could

not

other

employees, the opportunity to purchase the
stock

of

the

company
then proposed
to
at a price to net the
company the
amount as though such

issue,
same

stock

marketed

through then
banking channels.

ment

available
The

were

invest¬

board

deter¬

mined

that the stock to be
sold should
be offered to the selected
group at a price
$10.50 per share.
The
syndicate has
formed
a
voting trust for the common
stock of the
company.
1
of

Proceeds—-Entire
will

be

for

additional

proceeds

from the sale
the company and used

received by

working

corporate

capital

and

for

purposes.

Registration Statement No. 2-5112.
Form
A-2 (3-24-43).

int.

and

■''

>

Indicated

reasons

purchase

be
carried
out, the group acting
through the syn¬
dicate requested the
company
to
afford
the syndicate
members, as well as

other

M.

had

When

Amendment
effective

'

filed

June

1,

1943,

to

defer

date.

(This

list

*

is

incomplete this week.)

a

course become
effective, thai
days after filing except in the case of the secur*
certain foreign public authorities which
normally

days.

seven

as

per

First

Cleve¬

Co.;

Jenks,

Johnson, Lane, Space &

Inquiry Opened—No
Strike Threat Seen
Edward J.
of

man

specified,
rule 930(b).

of 4:30

are as

Flynn, former Chair¬

the

Democratic

National

Committee, and Counsel
five

railroad

Railway

NEW

INSURANCEE

per

COMPANY

OF

'

HAVEN

share, to be reserved for issuance upor.

the

SECURITY

Security

conversion

tive

preferred

has

Haven

filed

Company

of

New

registration statement
of capital stock,
par
per share, and subscription war¬
rants evidencing rights to subscribe to the

for

50,000

Address—175

Whitney Ave., New Haven,
.v'v'aa'."; '• A ■ - A -'■• A .AA
A'''
Business—Company is a fire and marine

Conn.

company.

Offering
the

stock

new

price

a,

share

held

to

of

be

the

be

present

named
stock

new

on

will

to

offer

stockholders

by

for

record

supplied

to

proposed

amendment
each

date.

four

The

one

shares

date

record

by amendment.

at

stock

two

for

brotherhoods,

purchased
Proceeds
be

the

Net

—

added

.

be

to

by

'

•

proceeds from
and used as a

to,

under¬

supplied

company's general funds.

ceeds,

the

$25

share

a

shares of
of

each

full

period

to

share

one

ten

of

of

of,

Of such pro¬

capital stock account and the balance

credited to surplus.
Registration Statement No. 2-5145. Form
s-i ,(5-25-43). <

CREAMERY

shares of $4.25

without

par

offer

may

Proceeds

the

Company

expects

office

to

on

about

A

or

120

South

July

engaged

ture

and

densed

Salle

La

with

the

at

a

of

sale

in

butter,

ice

buttermilk,

Chicago,

manufac¬
con¬

milk

and

cheese, the distribution of milk, eggs, fro¬
foods, oleomargarine, operation of cold
plants,
and in
practically every
branch of the dairy business.
Offering

—

share

July

shares

pre¬

the

com¬

outstanding $5
on

a

share

for

cumulative pre¬

offer

of

exchange

the

quarterly dividend,
1943, with respect to

1,

of

its

Holders of $5

accepting

receive

able

cumulative

exchange by the

preferred stock

basis.

ferred

$4.25
for

the holders of

cumulative

will

The

is offered

to

pay¬

then-

stock.

Underwriting—The
mulative
been

preferred

underwritten.

Glore,

of

$4.25

exchanged

cu¬

have

underwriters

are:

Forgan & Co., Chicago;
Hayden,
& Co., New York; W. E. Hutton &

Stone

Co.,

shares
not

The

York;

New

Mellon

Securities

Corp.,

Pittsburgh;
First Trust Co.
of
Lincoln,
Lincoln, Neb.; Central Republic Co., Inc.,
Chicago; Kebbon, McCormick & Co., Chi¬
cago; Lee Higginson Corp., Chicago;
Wis¬
consin

operations

the

U.

Co.,

&

Bacon, Whip¬
Chicago; Blair, Bonner & Co.,
Farwell, Chapman & Co., Chi¬

Chicago;

G.
H.
Walker
&
Co.,
St.
Louis;
& Co., Denver; Bosworth, Cha¬
nute, Loughbridge & Co., Denver; Maynard
H.
Murch & Co., Cleveland;
KirkpatrickPettis Co., Omaha, and Burns, Potter &
cago;

Boettcher

Co.,
will

A A'

Omaha.

Offering price to
by amendment.

stock

from

the

sale

mined

at

$102.50

$5

cumulative

per

share

J.

preferred

plus

accrued

Registration Statement No. 2-5146. Form
(5-27-43).

a

American

AVIATION,

Aviation,

stock

of

has

voting

and

an

common

igan)
(New
the

met.

Walter

P.

of the South

Supreme Court), Dr. I.
(Professor of Eco¬

and

University of Mich¬

Frank

York

M.

attorney)

Swacker

constitute

Board.

Jacob

[

Aronson, Vice President

of the New York Central

RR., and

General Counsel for the
railroads,
stated that present wages of rail¬
road

employees are very substan¬
tially above the average wages of
other industrial workers of this

country and declared the belief of
the management that no
wage in¬
crease
is warranted and none is
permissible

under the stabiliza¬
tion program of the Federal Gov¬
ernment.

Issues

to

He added: "I know that

the members of the brotherhoods

making
not

now

strike.

a

Such

a

strike

the railroads, in wartime,.
make all of us hang our

on

would

deter¬

ua.

threat to strike. I

no

think, however, that they
to capitalize on the

entitled

threat of

filed

heads in shame."

a

indeterminate

stock, par $1

N. Y. Stock

voting trustees, have filec
statement for voting trust
for 150,000 shares of common
Corp.

A

■

an

statement

all

of

Additional

shares

and

to

with

but

Purpose—To

shares

'A;,. >
form

of

cer¬

common

of

the

the

voting

certificates

trust

150,000

.-A

:

of

of

are

common

a'
trust.

voting

to

•,■•"

Registration Statement No. 2-5113. Form
F-l

filed

June

:

1,

1943,

defer

to

A)-"-'')'

;'A;\V A

CELOTEX CORPORATION
Celotex

Corp.

statement

stock,

for

has
75,000

registration

a

shares

of

common

par

Business—Company is engaged in the
building material business.
Underwriting—There are no underwrit¬
Offering—The
be

offered

share

75,000

by

the

shares of

serving

in

the

with
board

of

limited

a

while

by the

stock,

a

of

officers
of

nurchase

standing

to

Davies

considered

by

June 10. Both

the

advisory

or

of

group

company, was

to

augment

persons

carrying

its

working

issuance and sale of
substantial group
of

the

company

and

directors,

a

syndicate
of

common

a

large
stock

Tainter

will

be

Exchange

the

on

partners in Pell

are

& Company.
Uzal Oakley retired from

nership

in

New York

A.

M.

City,

part¬

Kidder

& Co.,
of May 31.

as

Transfer of the Exchange mem¬
bership of Zalmon G. Simmons,
Jr., to H. Walter Mewing will be
June

on

Ewing will continue
in

D'Assern

&

17.

as

Co.,

a

Mr.

partner

New

York

including
joined

with

com¬

key
cer¬

in the
view

a

block
from

Jules S.

Bache, general partner
Co., New York
City, also became a limited part¬
in

J.

ner

S.

Bache &

effective June 1.

Interest

of

the

late

Reginald
Hovey & Co.,
Boston, Mass., ceased as of May 19.
Bradlee in Chandler

$10.50

standing
business relations
company to
be selected by the
directors.
Statement says that

negotiations

employees

the

professional

a

capacity and
having
long

Sweet

common

at

company

only

to a selected group con¬
sisting of employees of the company, in¬
cluding officers and directors and those
per

weekly firm changes:
Proposed transfer of the Ex¬
change membership of Harold R.

City.

filed

value.
Address—120 South La Salle Street, Chi¬
cago, 111.
no

The New York Stock Exchange
announced
the
following

has

considered

(3-24-43).

Amendment

effective date.

Exchange

Weekly Firm Changes

stock

trust

application

consent

voting

exceed
A" •"

stock.

the

and

stock,

common

voting

be deposited upon

trustees,

the

2-5112)

such

of

receive;

the

the

No.

purchase

shares

and

tificates.

not

who

their

thereunder

holder

No.

will be af¬
syndicate

opportunity

members

in

others

deposit

may

no

a^
...
Celotex
statement

(mentioned
to

stock,

common

syndicate has formed
for the common stock of

ti-ust

formation

share,

of

Sharfman

do

whose

been

not

company, and
forded to the

mon

filed

non-cumulative preferred stock,

per

of

were

but

ago,

have

not

are

nomics at the

are

The

convertible

$25

L.

demands

,

list

a

more

Offering—(See
2-5112.)

tain

par

below

Celotex

registration statement for 26,218 shares of

number of shares of

to

obli¬

CORPORATION

value.'

par-

capital

INC.

Inc.,

con¬

and

OFFERING

unknown

are

certificates

on

WEDNESDAY, JUNE 16
AMERICAN

All

its

Dahlberg, O. S. Mansell and Andrev

recently,

ALL

pay

Carolina

Dallstream,
registration

will
any

dividends.

A-2

'

•

or

dates

or

CELOTEX

public
of

to

outstanding

stock

undex*

outstanding

ers.

underwriters, with other funds of
the company, will be used to effect the re¬
demption on Oct. 1, 1943, of all of the
then

finance

Government

its

OF

present

days

offering

be supplied

Proceeds —Proceeds

S.

of

to

registration statements

twenty

Company, Milwaukee;

ple

applied

the

June

strike is

Chicago.

storage

ferred

be

certain

I.

whose

a

zen

pany

to

if

on

no

approximately 400,000 rail¬
employees for a 30% increase

Stacey (Chief Justice

are

stock,

cream,

dried

shares

public at $25

Registration Statement No. 2-5147. Form
(5-28-43). * 1

91,317

subsidiaries

the

the

Panel,

executive

St.,

its

to

com¬

S-2.

Bror

and

remaining

sale

Will

—

gations,

1.

principally

milk,

St.,

its

move

Business—Company

are

State

to

any

for

company's

tracts

discharge

":A.,. \A-\v)'<-:aa

A

the

or

in

for

share,

We

filed

covering

South

share,

a

contemplated
road

The

common

Thereafter any remaining shares
stock will be offered to the

underwriters

COMPANY

cumulative preferred

value.

Address—1526

of

UNDETERMINED

Creamery Company has
statement

stock

common.

holders

preferred

TUESDAY, JUNE 15
Beatrice

the

their
rights to sub¬
of preferred stock will ex¬
after the initial date of

DATES

registration

more

stock on

preferred
of

or

exercise

may

pany

A

BEATRICE

of

which

general public at $25

will

be

ten

of

common

shares

within

stock

holders

company's

basis

sale

part

conducted

Offering —The preferred stock will be
Initially offered by the company for sale

a

amount equal to the total par
shares sold
will
be credited
to

an

value

the
stock

be
'

will
•

.

will

of

amounts

by/., each

amendment.

of

names

is

supplied by amendment.

days

the

business

Labor

7 gave assurance that
the

Wilming¬

the

shares

and

St.,

major

and

pire ten
offering.

Underwriting—The

stock.

common

Ninth

divisions, Air Transport
Manufacturing Division.
Underwriting—If any offering is made
through underwriters their names will be
Division

scribe to

writers

non-cumula¬

Del.

its

Provision

made

into

West

for the offering of any un¬
subscribed shares of capital stock by cer¬
tain underwriters.

has been

convertible

Business—Present

by

at

Company

—

ton,

a

shares

stock.

insurance

of

Address—200

Insurance

value $10

Co,;. B.

Co.;

Exnicios

as

(5-19-43).

ciates.'

1

SUNDAY, JUNE 13

Applegate;

Chaplin

the

.

Offered

' V

.

.

Neuhaus

&

&

Co.; Schwabacher &

Scranton

Weeks

Sons

&

Meeds;
Milwaukee Co.;

Co.;

Pierce

Scribner;

stedt

Bissell

& Lynch;

Moore,

W.

S-l

cake

■

Richards

Marache

Co.;

'

of

Registration Statement No. 2-5141. Form

to be supplied

public

prepayment

which

sell.

Offerings will rarely be made before the day follow hearing in New York, before an
Emergency Board appointed by
ing. ■;V;V"/VK'o .vVvV'';" ':'f. the President from
the National

to

to the corporation the terms of
agreements, the names of the under¬

Co.;

Central Republic Co., Inc.,.
• Clark
&
Co., $250,000;

Interstate, and

products.

.

P.M. Eastern War Time

regis¬

have

intend," however,

days

Dillon

W.

Burr,

City,

bread,

the

Inter¬

estate
5%
note,
payable
Sept.
7,
1945, originally issued by Western Bakeries
Corp., Ltd., and subsequently assumed by

These dates, unless otherwise

the

selling stockholders

such; shares

of

They

IBlodget;

$1,000,000; Alex. Brown & Sons, Baltimore,
$350,000; H. M. Byllesby & Co., Inc., Chi¬

of

to

Baking

by

real

manufacture

become effective in

Corpo¬

public, the under¬
commissions; and the

The

$151,875

Schulze

assumed

com¬

from

Securities

owners

agreements

jShields&

land, $100,000; A. G. Becker & Co.; Inc.,
N.
Y., $600,0Q0;
Blair, • Bonner & Co.,
Chicago, $200,000; Blyth & Co., Inc., N. Y.,

distribution

bakery

ties of

the

or

enter

to

sale

Thalmann

Co.,

the

by

twenty

s

Registration Statement No. 2-5143. Form

!&

in

issued

subsequently

list of issues whose registration state'
than twenty days ago.
These issuet
grouped according to the dates on which the registra¬

ire

such

firm

(5-20-43). A / A
/A-.-A''
According to an amendment filed June
3, the underwriting group, headed by Mel¬
lon
Securities
Corp.,
includes:
Morgan
Stanley & Co;; Dillon, Read & Co.; Blyth
Co:; First Boston Corp';; Harriman Rip¬
ley & Co.; Smith, Barney & Co.; Drexel

change offer have been underwritten, with

Kansas

1945,

tion statements will in normal

A-2

1943.

St.,

Following is

the

writers, the price at which the shares will
,be offered to the public,' etc.'
:
'
Proceeds—Will go to the selling stock¬
holders.
A :AA\aa

face

state;

1958.
34th

1,

and

to

nents were filed less

and

[furnish

shares

share

Co.

refunding

1,

amendment.

$25

par-

to
no

the

Sept.

capital.'

and

sale thereof

shares

of

of all of the outstanding first
mortgage 6% sinking fund gold bonds, due

$2,500,000

Business—Engaged

requirements.

present

interest,

source

proposed

registered

connection

Mellon

offered

the

,such

per

stock

required.

expire

for

$200,000.
Proceeds—Of the proceeds
approximately
$2,067,000 will be used for the redemption
on
Sept. 1, 1943, at 105% and accrued

Mo.

'''':'•

.'

•,

exploratory

such

for

W.

and

City, Mo.,

5%

June

underwriters

tral Republic Co., Inc.,
Chicago, $500,000;
Farwell, Chapman & Co., Chicago, $200,000, and Stern Brothers & Co., Kansas

EWT

nr.

The

—

underwritten are: H. M. Byllesby
Inc,,-.. Chicago, $1,100,000; A. C.
Allyn & Co., Inc., Chicago, $500,000; Cen¬

Co.,

•

few

a

pre¬

$100

at

determined.

•into

outstanding

exchange
the

on

'I

stock,

future

due

.

amount

Underwriting
amounts

&

.

ment.

to

$100

owns

effective

of

cumulative

p.

statement

Offering—Price to

has

in

who

is

take

thereof.

intend
for

April 1,

value of

par

trusts

to

writing discounts
proceeds to the

7%

offers

5:30

mortgage

Address—406

y

,

capital

engaged

There

be

may

been

group

bonds

on

'

'

;
'yr-.-Y* A':-:1"'; '
-'A
Offering—The price at which the shares

:

lists a nation-wide
underwriters, v The company

90

and

ration

Form

$35,000,000

Schneider,

1943.

(closed),

,

,

tered.

Co. ;of
Delaware
filed
an
its registration
statement

proposed

cumulative

1978,

to

v

•-,*

•

of

*

received

owners

preferred

Registration Statement No; 2-5134.

shares

mitment

A'A"../v,

'

Corporation

actively

sons

with the shares acquired
the exchange offer, will retire

$35,000,000

CORPORATION

Oil

shares.

which,

pursuant

A.

Underwriting—The shares registered are
outstanding shares owned by certain per¬

not "taken

in
exchange pursuant to
the
exchange
offer, with any other funds in the treas¬
ury which may be necessary, to-the re¬
demption- of a par amount of 7% guar¬
company

(EWT)

p.m.

.

^

development work in
acquisition of oil for

T, & S.

the

OIL

be

are

Co.,

of

'V

Business—Is

.•

..

expire

3,

effective

registration

a

Address—Gulf

Chase National Bank, New York; Con¬
tinental Illinois National Bank
&
Trust

anteed

Fran¬

by Gulf Oil Corporation;
Building, "Pittsburgh,. Pa,
engaged principally in the
production,, purchase, transportation, re¬
fining and sale of crude petroleum and
products derived therefrom,
or
in busi¬
nesses
related
thereto,
in
the. United
States and in foreign countries.
The cor¬
poration and certain of its' subsidiaries

the

are

proceeds

San

first

of the proceeds from the

none

.p.m. June 3, 1943, local War Time,
in
the
city of the depositary.
Depositaries

net

Co.,

5

share. :* All of the shares registered
presently issued and outstanding and

are

3

N.

&

'■

764,500
per

underwritten

the

Co.;

Co., and Woodard-Elwood & Co.

June

on

.

Gulf

com¬

upon

&

&

Whitaker & Co.; Harold E.

Co.;

Registration

debentures June 7,
by Kuhn;* Loeb & Co.,, and asso¬
the balance of the
issue
having
subscribed for
by preferred stock¬

GULF

more

the

taken

been

1943.

holders.

the total
stock, de¬

debentures, by

have

offered

.

if

require

Troxell

&

Wood &

.

ciates,

of

debentures,-

debentures not
offer

will

and

share

preferred
would

issue

the

of-

The

pany;

subject,

of

for i exchange

exchange

i

held,

shares

each

18,

1.943,

shares of
cumulative preferred "stock

for

Poole

Hickman;

Sills,

Weeden

Offered—$15,517,700

hold¬

the

523,581

debentures

of

posited

Inc.,

St.

Witter

Dean

and

May

of the par value of $100 per
share,' the
right to exchange such shares for
the
debentures ybn
the
basis'
of '$100
fdee
of

Co.,

Co.,

cisco, $500,000.
):
Registration effective

amendment.

outstanding

guaranteed

amount

Kansas

&

&

&

Shuman, Agnew &
Minton; I. M. Simon
& Co.; Wm. R. Staats & Co.; Stix &
Co.;
Lowrey
Sweney &
Co.;
Swiss-American
Corp.;
Walker,
Austin
&
Waggener;
Co.;

..

Offering-—Company
ers

Co.,

Stix

Schmidt,

Bernet

Union Securities
Offered June 7, 1943, by Mellon Securi¬
Corp., N. Y.,
$750,000; G. H. Walker & Co., St. Louis.
ties
Corp. and associates, at $47.50 per
$250,000; Wertheim & Co., N. Y„ $300,000;.. share,
A •',"1 "
•
A"''
White, Weld & Co., N. Y„ $750,000; Whit¬
ing, Weeks & Stubbs, Inc., Boston, $250,INTERSTATE
BAKERIES
CORPORATION
000; Wisconsin Company, Milwaukee, $500,Interstate Bakeries Corporation has filed

meat

and

company

facture

by-products.

Co.;

$250,000;

the

for

&

Nicolaus

$200,000;

slaugther of
livestock and the processing of meats and
animal

Smith

City, $150,000;
St.
Louis,
Louis, $100,000;.
Stone & Webster and Blodget, Inc., N. Y.,
$750,000; Stroud & Co., Inc., Philadelphia,
$250,000; Swiss American Corp., N. Y.,
Stifel,

Ave.,
Chicago, 111.
Business—Engaged
in
meat
packing
business, operating packing plants in North
South

$150,000;

$1,000,000; Stark¬
$150,000; Stein Bros.
Baltimore,
$250,000;
Stern

Boyce,

Brothers

debentures,
Racine

Union Stock Yards,

and

Pittsburgh,
Co., N. Y.,

weather & Co., N. Y.,

1978.

Address—43rd

Security Flotations;

Scribner,
Barney &

DELAWARE

2179

of
a

to

out¬

single

Rail Situation

Interesting

The current situation in

North
road

Shore

&

Company

Chicago

Milwaukee

offers

Rail¬

attractive

possibilities according to a com¬
prehensive memorandum issued
by Brailsford & Co., 208 South
La
Salle
Street,
Chicago,
111.,
the Chicago Stock
Copies of this interest¬
memorandum may be had

members

of

Exchange.
ing

from the

firm upon request.

^

Thursday, June 10, 1943

CHRONICLE

THE COMMERCIAL & FINANCIAL

2180

Fort Pitt

For Dealers

Teletype—N. Y. 1-971

IIAnover 2-0050

—

Preferred

Preferred

C.O.D.

BROWN CO.,
—

Aeronca Aircraft

5%, 1959

Corp.

Houston Ltg. &

(Important position in small Plane field)

Bendix Home

SECURITIES

Warrants

M. S. WIEN&CO.

Allen B. DuMont Laboratories, Inc.

SPECIALISTS

25 Broad

Dealers Ass'n

Y. Security

Members N.

(Important position in Electronics field)

New York City

50 Broad Street

-

Erie Railroad

Appliances, Inc.
in Home Laundry field)

(Important position

Power

Common

Common

r arl marks & pa inc.
FOREIGN

& 6s of SO

Penn Central Airlines

4 slocks with post-tear prospects

5%, 1953

ABITIBI POWER & PAPER,

Bridge Works

Common

.

.

Markets

Firm Trading

Bonds

.

HAnover 2-8780

St., N.Y.

1-1337

Y.

N.

Teletype

Majestic Radio & Television Corp.
'

By S. F. PORTER

I

w;

.;

West

request

1st

INCORPORATED

Members

York

New

.

Income

YORK

reotor

.

.

.

Approx. Price: 36%

1-576

.

will total

$1,000,000,000.

.

Then the Treasury will have to decide
the total of new offerings at the roll¬

.

.

D. F. Bernheimer &
42

what to do about increasing

on

.

date each week.'..

over

.

Y'r'v

*>'■:'

.

BOwling

Telephone:

Teletype

Flat

Co., Inc.

York City

New

Broadway,
Bell

A

Green

NY

9-4970

1-1043

OR BOND?

NOTE

,

major decline?

No, the Federal Reserve

.

.

bond bracket.

Federal Reserve pur¬

Incidentally, watch the weekly figures on

.

.

market and on the totals of

.

.

.

size

a

.

This is the way

and unless
exactly the sort of operation

the June 28 operation shapes up now,

Morgenthau decides to fool us all, this is
you should count on. . . v
'

V
\
■'
;
v
Of course, the purpose of the offering is redemption of the
$454,009,000 3%s and $629,000,000 of l%s, coming up for payment
June 15.
Only Morgenthau is going through the intriguing
and most significant process of "delayed refunding," so that
holders will not get the benefit of "rights" and so that no prece¬
dent for privileges on refunding will be set at this time. ...
The 3%s and lVsS will be paid off.... The money to make up for
this drain and to provide another billion-plus will be obtained
two weeks later..,. It's sensible; makes a good picture all around
for the Treasury.
As for holders, they should not have antici¬
pated anything but outright redemption, anyway. . . . For weeks
this column has been pointing* out that fact and suggesting that
the program was (1) a separate offering for banks, and (2) a
public bond drive in late Fail.. ..
.

.

'

.

,

new

In 1947, so that the note
.
.
.
There haven't been

■ ■,,

•

to

buy

L.D. Sherman & Co.

■

■

...

look for

year.

.

.

.

recently to buy notes.

1947 note, extending

a

the part of
.

be what's ahead may be seen in the
mediates the day after the announcement. .
INSIDE

come-back in the inter¬
.

.

ANGELES, CALIF.—John

Flanigan, formerly bond trader
Pledger & Co., has become
associated with Buckley Brothers,

V-l !

^

of

members

New

the

York

and

Randolph Burgess, Vice-Chairman of the Board
of National City Bank to be Chairman of the New York State War
Finance Committee greeted with enthusiasm by bond dealers and
bankers...
Burgess is considered an expert on all fields of financing.

Philadelphia Stock Exchanges, as
manager of the trading
depart¬

Vice-President of the New York Federal Reserve
superb.
.
Feeling is he'll handle the bond drives with

Flanigan was with Akin-Lambert

Selection of W.

.

.

His record as

Bank was

.

.

expert tact and success.

Morgenthau due to get more than $4,000,000,000 from June tax
Along with new issue and proceeds from war bond
tax note sales, he'll be in excellent shape to go through Summer

collections.
and
and

...

...

September.

latest estimates.
One guess

.
.

.
.

.
.

about the significance of the bracketing

of bond deal¬

insurance companies and banks under the guidance of the Re¬
serve Banks is that the Treasury has a plan for getting cash from
these sources at set intervals throughout the year. ... Idea would
be to have dealers in this so they could handle whatever shifts in

ers,

their

ment

of

West

Sixth

office at 530

local

the

In

St.

Mr.

past

Co., Chas. E. Quincey & Co., Con¬
rad, Bruce & Co., Citizens Na¬
tional
Co.,
Bancamerica
Blair
Corp., and C. F. Childs & Co.

Bond drive due in mid-October, according to
:
.•
V'J

bonds and funds take place. . . . And Reserve Banks are at head be¬
of cash, incidentally. . . . Bill offer¬ cause they know what the deposit-cash situation in those institutions
ings now are up to the $1,000,000,000 mark, for the maturing issues
is and can report it at the proper times. . . .
^
are at the $800,000,000 level and the policy is to obtain $200,000,000
Feeling among experts still is that many small banks hold too
of new money a week.
It's hard to say whether a billion will be
the limit on these bill offerings. ... Until now, that has been the many certificates of indebtedness on the theory that these are safest.
idea, but there are no signs that the saturation point has been reached
/ ; They are—for a large bank which must have diversification and
on bill flotations and it may be that the Treasury will try to get up
a greater total of funds on hand for
demand calls. . . . They're not
to the $1,500,000,000 mark eventually. . . . >'•
; ;v ; •
England has done a superb job in putting over these short-term and are a waste of precious interest for a smaller bank which needn't
financings,
...-We've caught on to the technique, too, and may go on follow the diversification rules to such an extent. . . . These well
indefinitely as long as the Federal Reserve maintains its repurchase
might sell the c.is, stretch out into the five to eight-year maturity
agreement.
.
'
brackets and make considerably more on interest. , . .
By September the cycle will be complete and all bill issues out
..

LOS

J.

with

."A"'"

THE MARKET

NY 1-2218

Teletype

Buckley Bros. En L. L

which felt the pressure of the financing
indication of the growing belief that a note

may

System

J. I

.

As for the bond section,

announcement, some

Street, New York

Telephone WHitehall 4-7970

:/■-'

this part of the list into a

And expect an instantaneous reaction on
Treasury decides to follow this course. .

Pine

30

Bell

. ,.

Morgenthau is getting plenty

.

General Aviation Equipt.

certificates. . . . They've had con¬
2% bonds and build portfolios of

the banks if the

.

...

Amer. Business Credit A

.

.

.

Great Amer. Industries

,

They've had mighty little chance
So

stated the $2,500,000,000 issue
will be open to all subscribers on the offering date, June 28, the
general opinion around the Street is that this will be one of the oldtime regular open market deals. . .-..Which means. .
Quick over¬
subscriptions.
...
Primarily bank buying.
.
Free riding. . . ,
The public won't know the deal is on until it's over. ... A 24 to
48-hour limit on the opening of books. . . . Some premium to be
anticipated on the new issue immediately. ...
.

.

plenty of %%

have

opportunity

siderable

Secretary Morgenthau has

While

.

Banks

a-

Citizens Utilities
.

Banks seem to want these as
anything else.
There is no reason why Morgenthau
neglect this section of the market in order to over-empha¬
section which has had plenty to absorb in the last few

months....

.

•

...

while.

a

as

To hold back

THE NEW ISSUE

for

up

Candy Corp.

Air Communications

,

.

four years?

built

note issues out recently.

should

'

Might it not he a note instead?

much

these.

selling.

...

many

.

Lately, the Federal Reserve has been
the price rise. . ..
•

sure?

say,

is

Loft

.

.

.

so

in,

due

.

.

.

classification

previous week than you can
tell from the surface price quotations.. . . When it begins buying,
you may judge that the market has been weaker and some largescale liquidation from a commercial bank or insurance company
..

note

A

.

market has been much stronger in the

appeared.

.

But is that

various
obligations held.
In those statistics, published Friday, re¬
leased late Thursday night from Washington, you'll find the clue
to the way the Federal Reserve views things. . . . When it's sell¬
ing heavily, you may conclude with ample justification that the
chases and sales in the open

.

.

.

*

that

$2,500,000,000 issue would be in the form of 2% bonds due
less..
Morgenthau had said the loan would be within
the 10-year limit.
The first idea was a 2% issue again, therefore,
and the consequence was a slight fall-back in the intermediate
new

in 10 years or

.

.

first, the impression around the financial district was

At
the

wouldn't permit that, even if the cause arose.

has

york

.

.

A

Enterprise 0015

2-3G00

1941—6.20%

Teletype

Bell
new

1942—9.41%

Income

NEW

TELEPHONE

PHILADELPHIA

telephone

v:
Committee
... But a check
among the authorities reveals they wouldn't mind seeing just a
steady market for a bit.
They're willing to sell and are
selling bonds to accomplish this end.
..
.
And that's an at¬
mosphere you should be cognizant of at this market level. . . .

way.

7%

Interest Accumulations

STREET,

NASSAU

45

dealers are reporting in
For instance, one says
"I've my fingers crossed at this stage even though I can't see any
reason why it should react".
And when you've seen a market
rise persistently and consistently for months, it's logical to draw
back.
Others outside of you probably are feeling, the same
.

Virginia-Pitts. Coal

Mtge. Income 6s, 1947

Security Dealers Association

.

thinking in terms of those profits. . . . The
statements that indicate growing caution. . .

.

on

Kobbe, Gearhart & Company

The way

.

*

Information

•

:

■

.

this market goes/'down" is to "stand still"'. .
It rallies
for weeks, then quiets
down, holds, gets nowhere and gathers
strength in so doing. . . . It looks good all right and no one who has
been watching the situation closely would dare deny that. , . . But.
It's a long way from the bottom. .
.
The advance has been con¬
tinuing for many months. . , . Thousands of institutions with their
attention concentrated on the market now have nice profits and are
1

Television field)

(Important position in

Governments"

"Our Reporter On

Situations Look Good
J. F.

Reilly & Co., Ill Broad¬

New York City, have pre¬
pared
interesting
circulars
on
Botany
Worsted
Mills,
Punta
Alegre
Sugar,
and
York
Ice,

way,

which' the firm

tractive
levels.

Copies

at current
of these circulars

be had from J. F. Reilly &

may

Co.

believes offer at¬

possibilities

request.

upon

.

Over-Counter Review

.

,

.

.

.

Bristol

& Willett, 115 Broad¬
New York City, have pre¬
pared the current issue of their

way,
'

Over-the-counter Review," cop¬
of which may
be obtained

ies

upon

A

First Bcnus Bill Is

R. HOE CO.
COMMON

Introduced In House
Representative
in

duced

Baldwin

the House

on

bill to provide an average

Bought

——1

Sold

—

Quoted

to

our

Marine

from

71

York Stock Exchange

Broadway N. Y. BOwIing

Green 9-7U27

Bell Teletype NY

1-61




first

vide
erans

also

at

said

measure
a

EASTERN OIL ROYALTY

1<)25

DEALERS ASSOCIATION

a

of $300

the

end

of

the

said a United Press advice
Washington
on
June
8,

which

ESTABLISHED

Member:

Co.

post-war

of the

that

it

introduced

bonus

present war.

was

pro¬

for

vet¬

the

firm.

asset

value.

No Bonds—No Preferred Stock

Davis Coal & Coke Co.
Common Stock

UNDERWRITERS-DISTRIBUTORS-DEALERS
Oil Investments carefully selected
their long term investment prospects as well as for
their satisfactory current monthly returns.

Desirable Commodity
for

the

to

from

liberal dividend payer sell'
ing at less than net quick

1942

Dividends

armed forces and Mer¬

ber of

war,

Members New

8

$400 in bonuses for each mem¬

chant

HAY, FALES & CO.

intro¬

June

William F. Ferris &

request

Royalty

Offerings Invited

Memorandum

YORK

MUrray Ilill 2-4247

on

on

request

Hill, Thompson & Co., Inc.
Markets

120

522 FIFTH AVE., NEW

13%

over

present price

and

Situations

Broadway,

Rector 2-2020

for

New

Dealers

York

Tele. NY 1-2680