Full text of Commercial and Financial Chronicle : June 11, 1942, Vol. 155, No. 4080, Section 1

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ADM

US,

"""Pinal

Edition

THURSDAY

In 2 Sections

Section 1

vsfflet""r"V

[fa.V,$Jp*t:oBk»j

Volume 155

Number 4080

New York, N. Y.»

Thursday, June 11, 1942

Reporter On "Governments"

REPORTER'S

"Congress
higher

REPORT

From Washington in the last
fortnight have come several dis¬
patches of deep significance.
"Feelers," they were—and hints
.

p£ actions to

come,
In effect, they told us that (1) interest rates
will be stabilized but not frozen at the levels of
today, which are
2%% for long-terms and %% for
shortest-terms; (2) reserve requirements will be slashed and open market operations will be car¬

;
t
•

ried

accomplish

$5,000,000,000 plus increase in

excess

re¬

serves; (3) banks and other major investors in Governments will be
told the types of issues to be sold to them over the
coming war
months

the Treasury and Federal Reserve authorities have

as soon as

decided.

...

All of these things

And

ers

trial and

error

program.

85%
bonds sold to date.

gards

finance.

It is leading

in the paths of sophisticated public

If you want to take those sentences and
carry them to another
logical conclusion, you might say "If England has been able to do it
with its admittedly" less wealthy setup, America can."

Here

significant points worth re-reading several times
for an indication of what probably lies ahead for us.
(1) Short-term financing is Britain's main support.
At
present, Britain has a system of issuing "Treasury Deposit Receipts,"
which are six-months' non-negotiable securities, v
The banks
buy these in huge amounts and as a result the war in which England

are some

„

has
■

j
!

been engaged since

used in

form

one

another to help pay for the war.

(3) In the last two and one-half

years,

ConsoL 2%s (the big loan of England)

83%.
4 to

...

3%.
(4)

(2) About 90% of the resources of Britain's banks

Or, to put it another

way,

being

are

gone

short time

ago,

England cut the rate

loans of long-term maturity from 3 to

2%%.

its

with

the

public
bonds

war

distribu¬

means

They must be

the

necessary to take up

of the

funds

reserve

their share

Government debt.

new

Board

Act,
of

York

and

The

study the experience of England, the

you

clear

will be

one thought. .
.
.
And that is that fears of any major or even
intermediate rise in interest rates during the war period are generally
without foundation in fact.
The fear is father to the

thought,

...

false although natural handicap in financial circles.
If England can carry on the war and cut interest rates while it is
.

•

(Continued

on page

now

set up

of 26% against demand

As Reserve

quirement

the

time Mr, Robertson said:

program that will impose
taxes on so-called excess

heavy
profits,

the

provided

true

excess

profits

tax

rate

40%

profits at

cess

$817,000,000.
as

Upon re¬
sought, such

now

would

reserves

rise

approxi¬

But

view of vastness

Treasury

(Continued

of the

ahead,

program

it
2204)

page

Head

64 Wall Street

FULLY PAID

RESERVE

BOSTON
Troy

PHILADELPHIA
Albany

Pittsburgh

San Francisco

and

Williamsport

BANKERS

O ver-The - Counter

PROVIDENCE, RHODE ISLAND

•"

•

i -'

from time to time, due
primarily
to the fact that the future is un¬

able

from

some

source,

com¬

pany that

is unfortunate enough
to expand in the
wrong direction

weaken any company. A
company
must keep on growing or old age
and decay will overtake
a

company can grow

money.

its

Exchanges

among the

obliga¬

it, and
only through

INDEX^
Page
Bank

and

Bond

Selector

Insurance

Municipal
Our

Security Flotations 2206

Trusts

News

Reporter

Personnel

2198
2194

Calendar of New

Investment

Stocks

2199

and

Notes

2200

Governments

2193

Items

2196

Railroad Securities
Our

Reporter's

Securities

2197

Report

Salesman's

2193

Corner......

2199

Tomorrow's Market—Walter Whyte

Says

—.........

Uptown After

2197
2204

Money is its life blood.
country at large and all

citizens

will

company

suffer

loss

the

fails

Westinghouse
through lack of

Federal Water & Gas Common
Mass. Power &

Cairo

Rockland

THE CHASE

Light Pfd.

Tel.

correspondent

Towns

Head

New York

Enterprise

and

all

the

;

the

facilities

Boston

N. Y. Phone CAnal 6-2610

the

Member
■

Boston

SUDAN

Phone—Hubbard

Federal

8360

1250

and

Analyses Available On Request
;

-;1'..:

■

^"""

—■"$

CANADIAN

•Virginia & Southwestern

SECURITIES

1st Cons. 5s 1958

Uganda

(A SouthernRailway

26, Bishopsgate,
London, E. C.

System Bond)

•Pittsburgh & West Virginia

India, Burma, Ceylon, Kenya

Colony and Aden

and

Capital.
Capital

Reserve

Fund

Bank

conducts

banking

and

1st Mtge. 4y2s 1958-59-60

Zanzibar

.£4,000,000
£2,000,000
£2,200,000

every

exchange

description

HART SMITH & CO.
Members
New
52

business

Trusteeship! and Executorships
also

undertaken

York

(Controlled By Pennroad Corp.)

HAnover 2-0980

GUARANTEED

RAILROAD

STOCKS-BONDS
„

Bell Teletype NY 1-395

Telephone
New York

Security Dealers Assn.

WILLIAM ST., N.
.

Deposit Insurance

Corporation,

Teletype BS 568-569

Office:

Paid-Up
The

Government

Colony

Subscribed

Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015

Telephone:

31 Milk Street

Kenya

REctor 2-3600

Boston

service with Chase

Light & Pwr. Common

MAY & GANNON

Bankers

Security Dealers Ass'n

Broaden your customer

INCORPORATED
N.

OF THE CITY OF NEW YORK

£3,000,000

....

of INDIA, LIMITED

Kobbe',Gearhart&Co.
45 Nassau Street

Chicago

that

NATIONAL BANK

Securities

Members

Stock

for the pensioners whose

care

£3,000,000

Branches

York,

FUND

EGYPT

thru finest contacts in

New

CAPITAL

principal

Trading Markets, always

F. H. PRINCE

Boston

who

King William Street, E. C.

Watertown

Wilkes-Barre

Actual

v'";

And

tions and duties

LONDON AGENCY

52 WILLIAM STREET

lost

are

fail?

pensions

with

ap¬

New England Power Assoc. Pfd.

Cairo

New York

Sanderson & Porter

Members

Office

Commercial Register No.

FINANCING and VALUATIONS

INVESTMENTS

will

investments

companies

after taxing ex¬

From Mr. Robertson's letter
also quote:

of EGYPT

INVESTMENT SECURITIES

MANAGEMENT PROBLEMS

HIGH-GRADE

com¬

taking place on account of ings and taxe$ for the first quar¬
operating precautions due to the, ters of the years 1941 and 1942.
war, as well as threats of other
(Continued on page 2204)

Company

NATIONAL BANK

Established

NEW YORK

similar

"The

mately $1,800,000,000.

lit connection with

Chicago

these

rate of 94%

City banks, the re¬ will not be able to correct its mis¬
automatically take after it is found. This can

Banks in those two
have excess reserves

classification

R. H. JOHNSON & CO.

also

ENGINEERS arid CONSTRUCTORS

Company

panies?
Where will men invest
their savings if not in such com¬
panies? Who will care for those

NATIONAL BANK

SURVEYS AND REPORTS
A

house

are

QUICK ACTION ON DESIGN
AND CONSTRUCTION

the

entirely sympathetic with whose

would

now

totaling

2208)

vital."

Central Re¬ certain, and mistakes are made.
institutions in Unless additional money is avail¬

must

areas

reserve

areas
more

now

banks,

drop to 20%.

WHY A CHANGE?

"Every company finds need for
change in
permit re¬ additional money from earnings

New

Cities.

City

British policy is to stress maturity rather than interest rate.
And the banks manage their portfolios on that basis.

which

is moving for a

Reserve

those two

(5)
.

proposing substantially
time, without; a careful

increases."

It is with that end in view, no
doubt, that the Federal Reserve

deposits.
.

this

expenses which

banks.

assured

Reserve

war

which rest upon
offsetting the inflationary po¬ pears excessive.
the shoulders of Congress is the
tentialities involved in the vastly
"On top of these taxes is an
increased buying power growing
insistent drive to reduce profits, duty to act wisely when it enacts
out of huge war
spending.
which, of course, will reduce our tax laws.
But there Is nothing to be
taxes at the same time as they
"The trend I refer to is well il¬
gained by overlooking the fact
reduce our net incme.
And the
lustrated
that by far the bulk of the war
by
this
comparative
final straw might be considered
debt must ultimately be lodged
statement of Westinghouse earn¬
the increase in all

a
.

picture

Chicago from Central Reserve to

down from
on

to
accomplish economi¬
cally that expansion in production

Only

reserves,

the

possible

tion of the

serve
.

excess

classification

have risen from 62% to

cautiously

financing operations by

the

British "perpetual"

yields have

their

large

widest

their

will stop if their com¬
really established. I am also pany fails?
sympathetic with the substantial
the United States Treasury.
"It has been said many times
taxation
of
so-called
normal
that the power to tax is the power
Secretary
Morgenthau
is,
of profits, but surely the
application
course, intent upon obtaining the of a combined normal
I am sure you agree
tax and sur¬ to destroy.

September, 1939, has been "financed

basis considerably below 2%»

war

future

It is relying primarily on its banks, secondarily on the

have

all

looms

It has financed the war to date on an
astonishingly cheap basis. . . •>
It is still raising huge amounts of funds with a minimum of diffi-

culty.
public.

they
of

same

that

for

Under the circumstances it is

To begin with the conclusion, England has been able to do
just
about everything it has wished with its Government market.

move

corporations
future effect on

centive

Association,

accounted

readily apparent that the posi¬
tion of these institutions, as re¬

survey

should
against

taxes

national
economy," in the
judgment of A. W. Robertson, Chairman of the
Westinghouse' Elec¬
Manufacturing Co. In a letter addressed to all members of
The part played: by the Na¬ Congress last week, Mr. Robertson said that the corporation tax
program proposed by the House <$>—?
———
—:
tion's banks and bankers in fi->
Ways and Means Committee will funds to meet
nancing the vast war expenditures
emergencies, and if
seriously affect the future of his it fails other companies will fail
becomes
quite clear upon the
statement of Henry W. Koeneke, company, adding that it "may en¬ for the same reason. J/Vhere will
President of the American Bank¬ tirely eliminate the essential in¬ men work if there is no Westing¬

was

that, this writer suggests a valuable activity would
close study of Britain's experience since 1939 and of its

Copy

tric &

we knew.
(In fact, what approxi¬
printed in this column only last week.)
The question of importance then is not what the Government
intends to do but what success is it likely to have in its efforts.;

mated them

Warns High Corporate Taxes Planned Will Kill
Incentive to Expansion So Vital to War Effort

OUR

Our

Price 60 Cents

Montreal

Toronto

BO.

Gr. 9-6400

Broadway

NEW YORK

Teletype
N.Y.

1-1063

THE COMMERCIAL & FINANCIAL CHRONICLE

2194

Thursday, June 11, 1942

,vu

Autocar

Corp.

Liberty Aircraft

Spencer Steel

First &
First

Listed & Unlisted—Also Sterling Issues

chile;

Neto

York

Security

BELGIUM

Refunding 5s 1961
Refunding 5s 1967

;

G. A. Saxton &

Dealers Assn.

Bell

System

IIA rioter 2-4660

Members New York
40

COMPANY
Stevens &
3

First and

4^s and the Spring Brook
Supply First 5s Are Reviewed

Gas & Water First
Water

INC.

BROADWAY
YONKERS. N.Y.

BROADWAY
NEW YORK, N.Y.
120

2-7634

REctor

Bell

Teletype

Offices of the

is announced.

Lrm

bined

will

located

com¬

Scranton-Spring Brook Water "First and Refunding 5s, ;1961 and
5s, 1967, will appeal to those investors who are looking ^or/abme*
being discontinued.
dium grade bond with a steady record of earnings which will return
-I All general partners of the two
them a comfortable yield.
Either issue can be bought over the
firms will be partners in Stillman,
counter at about 97% to yield 5.21% to maturity in the case of
thp
Maynard & Co.; Howard A. Plum5s, 1961, and 5.18% in the case of the-5s, 1967. For those; Who are
mer is retiring as a limited part¬
willing to sacrifice some yield bui^
—-—-—-—... ;,.v~
ner in Evans, Stillman & Co., bui
desire a better secured bond and
adverse

not

are

mium above

Water

4X/2S,

4.17%

hodson&company;

and

to paying a pre¬
call, Scranton Gas &

1958, at 103%, yield
Spring Brook Water

•

Municioal

York

are

5s,

callable

now

102;

the

Spring Brook Water 5s at 107 V2.
The

Scranton-Spring Brook Wa¬
Company and its subr
sidiaries supply water or manu¬
factured gas, or both, to sixty-odd
neighboring communities in Penn¬
sylvania with an aggregate popu¬

Broadway, New York

Put Off

about

industrial

tant

Convention

sales

Water

centers.

ciation.

would
the

decided

traders

contribute

about

80%

not

cilities

iron,
cement
and
machinery
plants. About 18% of sales are in

that they

justified in taxing
and hotel fa¬
busy a war produc¬

the industrial classification.

transportation
so

Capitalization

debt

includes

roundly

funded

and
includes the following: $14,500,000
Sener explained. The association, 1st & Ref.
5s, 1967, $2,400,000 1st
which has a nationwide member¬ & Ref.
5s, 1961, $11,000,000 Scran¬
ship of over 2,000, expected a con¬ ton Gas & Water 1st 4X/2S, 1958,
vention
attendance
of
approxi¬ and $7,500,000
Spring Brook Wamately 500. Edward E. Parsons, ter Supply 1st Ref. 5s, 1965. The
Jr., of William J. Mericka & Co., ! Scranton-Spring Brook 1st & Ref.
is
chairman
of
the convention
5s, 1961 and 1967, are secured by
committee.
a
first mortgage on a portion of
the company's property but by a
tion

center

$35,400,000

Mr.

Cleveland,

refunding mortgage on the re¬
maining properties subject to the

Thompson, Wittmer

Malone

With

Golf

Walter

Buckley

Water 4X/2S and'the Spring Brook
Water 5s. Consequently, their po¬
sition is

considerably junior to the

j other two

issues.

These

latter

office.

Malone, formerly
officer of Yarnall, Stetser, Ma¬

Brooke

Co.,
are

Brothers

Inc.,
also

their

and

Edward

the

also

Wittmer,

Buckley
Philadelphia

Jr.

has

also

Nathan G.

Fay & Go.

for

over

been

ternational,land

with

Inc.,

Fred

will

Van

Lawrence

McMillen,

Robert
the

Oak¬

Stillman,

member

runner-up

New

Jame.

Morgan

York

Exchange.; Charles C.

Stock

Lawrence,

and

were

play against par competi¬
tion, followed by George Gillies.
&

Co., Inc. Kickers Handi¬

by W. R. Compton
Schwabacher & Co. Longest

cap

was

Jr.,

drive

won

Maritime Bldg. Brown-Marx
Bldg.
New Orleans, La.
Direct Wire

The

Brainerd

First
the

won

Boston

tennis

Whitbeck.

Corporation,

doubles

t'.-

•

Longmire St. Louis
Victory Fund Head
ST.
LOUIS, MO. — John R.
Longmire; has been appointed jto
as
Executive Manager of
Victory Fund Committee for the

serve

the

Eighth

/ Fed¬

eral

Reserv

Dist.

His

ap¬

^"Deanf;NewYorkStbck;Ex-

by the Secre

Co.

leave

absence

with the armed forces, and Arvid
of
Maynard,
Oakley
&

Taube

Lawrence

Captain

who

in/ the

will also

serving

Aviation

Corps,

partners in the

bined firm. "

com¬

ary

the

Treasury. k
Mr.

Long

mire

wel

,<nown

aancialcircles
bnv'ni? b^^n '

partner

Simon

Co., St. Louis

Curb

Exchange Names

invest,
ers,

bank¬

since 1929.

During

Nominating Committee

1932-

he ! served

33
as

manager_of. -«arol&a

bt. Louis RFC

Agency.
ment

Lewis,

Reserve

James

Warren,

Matthew Dean Hall Class B

and
mem¬

sion

business.
be

must
ners

Class

associate

members

member

non-member

part¬

partners

xongmiro

April 15 he took
leave of absence from his invest¬

Joseph F. Crowley, O. F. Brown¬
ing,. Jr., and Edward C. Werle
Class A members, and Robert J.

the day was made
by bers of the Nominating Commit¬
McEntee, Adams, /Mcr tee. The constitution of the Ext
Co., Inc. and Randolph change
requires
that
Class
A
Compton, Union Securities Corp., members be regular members of
won the
the Exchange, one of whom shall
Accuracy Contest.
E.
B. Laughlin, Harry Downs be engaged solely in the commis

and

NY 1-1557'

change rriember. -Major; J. Gould
a partner in" Evans, Still¬

RertiiCk;

Co.,

BH 19g '

s:r'

New York, N. Y.

■

-■

Birmingham, Ala,

■

25 Broad St.

•

banking connection to be¬
Director of the War Produc¬

come

tion

Loan

Agency in the Federal

Bank

of
St.
Louis, to
which he will continue to devote

part time.

Thomas

Co'

been approvet

Entee

1957"

pointment ha.

scoring

match

Blair

7% Pfd.'

Members New York Stock
Exchange

Richard S. Maynard, and William

man

be:

Walter

ley,

Buesser, Chemical
Bank & Trust Co., runner-up." E,"
At the final election on June £
A. M.
Cobden, Kean, Taylor & members of the New York Curb
Co., captured first place in the Exchange voted Harry A. Tracy

John

McCutcheon, John D.
&
Co.,
Inc.,
also

McCutcheon

widely experienced in the securi¬
ties business, has been designated
full-time

Longmire
program.

assistant

the
'•

Mr.

Victory

Fund

Executive

Manager,
Mr.
Longmire will have executive re¬
doing business for the public. The sponsibility, under the direction
Bradstreet, and Henry Eyre, F.
Committee will attend meetings of the
B. Eyre & Co.,
Victory Fund Committee,
runners-up; r - £$
of the Board of Governors and for
developing and guiding an
various standing committees for
aggressive program for the sale of
the purpose of selecting nominees Government
securities other than
with

John

Stephenson,

matches,

Jr.,

Dun

regular

associate member firms

N. Y.

years,

has become

director

Common

as¬

the

President for the

en¬

Mr. Swartz is director

year.

research

Goodbody

Co.

elected

Barrett
Associates
Treasurer.
At
the

general meeting of the so¬
ciety to be held today at Block
Hall

Lunch

Nadler,
New

Club,
Dr.
Marcus
Professor of Finance at

York

an-

University

Director

the

and

Re¬

Institute

War

Savings bonds,

aid to

the United States Treasury
war

in its

financing.

Jones Raises All But Cane
Jack
of

Jones,

man to go to if you
know what's what and

had

delicious

grow

table and

strawberries

North

West.

If your

den is not what it should
a

card

vege¬

surplus
that

be gigantic in size only

the

abundance

tables for his

The

Rogers

Wash/, is the
want

Reopens Hughes Case

Vice-President

& Co., 1411
Fourth Avenue Building, Seattle,
Hartley

gar¬

be, drop

Jack, who will be glad

Securities

Commission

opening

has

and '

ordered

the

case

Exchange
the

re¬

Charles

Hughes & Co., Inc., 32 Broadway,
New York City, investment
firm,
to

determine

whether

the

regis¬

tration of the company should be

suspended
was

issued

Hughes

revoked.

The order

order that

and

Charles

Co.

might cross-ex¬
witnesses, Mrs.- S. D. Furbeck, Mrs. Ann Knebel, Mrs. A.
amine

Zinnel
offer

evidence

regarding

E.
in

charges

Monahan
its

own

made

and

behalf
in

the

his expert advice— Commission's order of February
Finance,
will but how to get sugar for the ber¬ 13, '1942. The new hearing will be
speak on "The Financing of the ries is another
question, as he has held on June 15 at the Commis¬
War and its Consequences."-—
sion's New York regional office.
no cane in his crop.
of

Salvage Committee, and Director
Light Co. •
*

Wm.

In^

meeting of the
Society of Security
HamiltonSwartz

York

elected

was

Port-r

v'M i 4* 4

annual

Chandler

of Portland Gas

at the

A. Dewey was elected
how's how about starting a victory
President, Hamilton Hager garden to help the National De¬
of the First National Bank
was
fense Program. He recently told
elected
secretary
and
Marvin our -Western representative that

Council,

'M!M»vHr? VI. f

be filled

Vice

circles,

Lions

Chairman

for offices to

iiual election in February, 1943.

Frederick

Chairman of Cumberland County
.

Analysis Elect;

To Hear Dr. Nadler

suing

and
is
Chairman of Appeal Board No. 3,

town, Md. Mr. Wittmer was pre¬
viously Hagerstown manager for

•

special

by Walton R. Dunn, Mackey,
Dunn & Co., Inc. (102-35 net 67),

PORTLAND, ME. — Fred H.
Gabbi, who formerly represented
Paine, Webber & Co. in Portland

has

joined Buckley Brothers as man¬
ager of their office in the Pro¬
fessional Arts Building, Hagers-

Mackubin, Legg & Co.

firm

consolidated

won

was

known in Maine financial
S.

attending.
were

Governor's Trophy

Analysts

sociated with Nathan C. Fay &
Co., 465 Congress Street, it is an-,
nounced. Mr. Gabbi, who is well

with

office.

Carl

87-15 net 72. Low net Class B

New

the

Philadelphia
Stock1 Exchange, where he will
be in charge of the statistical de¬
partment of their Philadelphia

was

success

Dempsey,. B..

ton & Co.,

ley Brothers, 1529 Walnut Street,

lone

N; Y.,

Ingeri & Co., Inc., won the golf
meet- with a low gross^pf 78; Jn

Rye,

tennis

Nev

of the day.

features

has become associated with Buck¬

Alexander

and

of / the

Partners

the

Westchester

huge

members and guests

Thompson, Jr., formerly manager ! bonds too are secured by first
of the statistical
department of mortgages on practically all propMackubin, Legg & Co., Baltimore,
(Continued on page 2208)

Cluh

the

office

his

1-423

prior liens of the Scranton Gas &

PHILADELPHIA, PA.—J. Cary

members

make

with Ferris Moulton, R. H. Moul-

of the National Security Traders
operating revenues and manufac¬
Association, scheduled for Cleve¬ tured
gas the balance.
The com¬
land, Ohio, Aug. 26, 27 and 28,
pany's service territory is in the
has been postponed indefinitely,
heart of the anthracite coal min¬
it was announced by Joseph W.
ing fields, but includes numerous
Sener of Mackubin, Legg & Co.,
other
industries
including
silk
Baltimore, President of the asso¬
mills, railway repair shops, and

The

day

620,000. The ter¬ Class A competition, Daniel Fitzritory includes Scranton, Wilkespatrick, i Phelps, ' Fenn ; &• C04
Barre, Pittston and other impor¬ scored low net of 83-1L ne£ 72

Indefinitely

Annual

Ninth

The

lation

field

Bond

held

Country Club,
pronounced a

ter Service

NSTA Convention Is

annual

The

continue

with the combined firm.

Pronounced Success

1965,

yield 4.30% at
the current market price of 110x/4.
Supply

will

Municipal Club Outing

The Scranton Gas & Water bonds

165

the offices of Evans,
Stillman & Co., at 14 Wall Street

Steiner, Rouse &

Lawrence,

Inc.

Broadway, New York City, in the
■mace held by Maynard, Oakley &

MArble 1-8500
NY 1-2361

Debardelaben 4s,

of.; their business under the naipe
of Stillman,; Maynard
& Co., ii

Refunding 5s of this Company, the Scranton

Schoonover, deWillers & Co.

formulated plans

Thompson Paper

Vz /1958 and Common

•

Alabama Mills

& Lawrence have
for the merging

Oakley

BELL TELETYPE

Evans, Stillman &. Co. and May¬

nard,

SCRANTON-SPRING BROOK WATER SERVICE

Pfd.

slflH

Maynard Birmingham El.

1920

HA 2-2772

Exchange PL, N. Y.

As Sfillman,

Houston Oil Preferred»
American Colortype

;

Security Dealers Association

NYSE Firms To Merge

THE BOND SELECTOR

5/1973 C/Ds—S/1949

•...

for Firm Bids

its

Established

'■

1-2480

Phila. & Reading Coal & Iron

•

v-::fy;YUGOSLAVIA"^^:c^-^?'

K ATZBRO

WHitehall 4-4970

Teletype NY 1-609
Y.

Teletype,

Wire

Co., Inc.

70 Pine Street, New York

POLAND

ARGENTINA
.

Broadway, New York, N. Y.

■0-

NORWAY

BRAZIL

J.F.Reilly&Co.
.Members

BUY:

Foreign Dollar Bonds
111

Scranton-Spring Brook
Water Service Corp.
'

Botany Worsted Mills Pfd.
Wickwire

WE WISH TO

Trading Markets In

International

TV?

i.'l ?

give

you

iVolume

Number 4080

155

THE COMMERCIAL & FINANCIAL CHRONICLE

;

COMMERCIAL and
FINANCIAL CHRONICLE
Reg.
v

MARKETS FOR

;

•.

CERTIFICATES

{publishers

•

■••

issued; by:

25 Spruce Street,. New York

;

•

BOND

BEekman 3-3341

;

HOME

''Herbert D. Seibert,

MORTGAGE

8.; Patent. Office
6. 'Dana £oihpany

2195

•

TITLE

' '"

AND COMPANY

One Week Nearer Victory!

Public Utility and Industrial

CO.#

INSURANCE

CO.##

MORTGAGE

We have prepared

•

«:

Editor

■

LAWYERS

and Publlsbe'r

William? Dana Seibert, President

William D.

STATE

Riggs, Business Manager

GUAR.

TITLE

CO.?

MORTGAGE

TITLE GUARANTEE &

Thursday, June. 11, J942;

•

TITLE

; n. y. title & mortgage co,

;;

Spencer Trask & Co.

Published

twice

day (general

■

week

[every Thursadvertising issue)

news and

witn a statistical issue on
Monday! {'
V vOther-offices t Dhicago^In; charge ot

Fred

tawburger,Loeb& Co.
Membdtf&New ■> York

40 Wall St.,

Gray/Western Representative,'
Building (Telephone State 0813);
London—Edwards & Smith, 1 Drapers'
•Gardens, London, E.C. '

25 Broad

Stock Exchange £'L

N.Y.

WHitehall 4-6300

BeU

•

l-2b33 |

Teletype

Defaulted Rail Bond"

Street, New York

Teletype NY 1-5
Members New York Stock Exchange

(Field

discussion

Non-Reorganization

•

Telephone HAnover 2-4300!

•

"The Case for

CO.

All- other local companies '#/

PREFERRED STOCKS

CO.

TRUST

llCHIMH

High Grade

'0.

GUAR^ COi

MORTGAGE

LAWYERS

'•

interested in offerings of

are

Copy on request..

WALL STREET, NEW YORK

Telephone:

WHltehall

4-6551

•

1942

Reentered

William

Dana

second-class matter Feb¬
1942, at the post office at

ruary 25,
New York, N. Y., under the Act of Mar.
3, 1879.
,

•

Subscriptions in United States and
Possessions $26.00 per year; In Dominion
of Canada, $27.50
per year; South and
Central

Cuba,

America,. Spain, Mexico and
$29.50 per year; Great Britain,

Continental
Australia

Europe (except Spain), Asia,
Africa. $31.00 per year.

and

NOTE—On

account

the

fluctuations

exchange, remittances for
subscriptions
and
advertise¬

ments must

be made in New York funds.

DIRECT PRIVATE WIRE TO LOS ANGELES

-J

firm

The

Blumer, Inc., 2 Rector Street, Ne\y
City, established in 1931, has
changed'its firm name to Tedert
& Co., Inc.
Officers of the firm
will remain the same.
will.

firm

Continue

PACIFIC COAST

Wyeth
v

Co.

Inc.

adequately reflect the recent price trend.. Through the courtesy
we are able to publish a more
comprehensive
tabulation of "recent prices" and. quotations on
outstanding securities
of Mexican origin,. In
addition, we have received some additional
information which may prove of interest to dealers and others in¬
terested in the securities in question.
the price

newly prepared booklet, giv¬
/.comprehensive /description
of oil royalties, has just been is¬
sued; by Ted,en &. Co., who; wili
send copies to dealers on requests

•:>

X".

New, York

;

4/04-54

Elect New

<X — Corwin L.

CLEVELAND,

Liston has become associated with
•Prescott &

bers

Co., Cleveland,

the

Exchange,
cording
•

New

y2/07-57

•

Mr.

Officers

tof~;"

been

this

Lilienthal

tc| /,
1941
he
wasj;;;
i on the staff oi| I
Mitchell, Her-,;
rick
&
Co
and its

prede-J
firms

cessor
•

forfj

1921

From

and

later

was
v

.associatedwith

...

Corwln

Ledogar-Hor& Co. Recently he
with

Huff,

fine.
He

served

Llston

was

Co.;

Richard

for

was

the

National

Securities Dealers,

LOS

to The

SEC Widens Fraud Rule
i -/The
i

Securities

Commission

tion of

and

announces

-I;-'

and its

: j

•

rule prohibiting fraud by

5-28

turnover in 1942
turnover in 1942

no turnover

2'.

-y

turnover in 1942

3V2

—

in 1942 *f.

•

3'/a

5-18

With
"John J.
Sullivan

with

Farreli

and

become

Fitzgerald &

Robert

5-2''

5-23

47/a

4'/a

4'/2

5-18

3'/4

5-18

Mexican

Central

notes

Tchuantepec National Railways:
.5/14-53
...

•

Co.,

Inc.,

V2/14-53

—

5/03-34
"

5/07-37

previously with Craigmyle, Rogers
& Co; and prior thereto with R;
Johnson & Co. of which Mr*

buying securities if they
engage in fraud in their purchase. Sullivan

was

partner.

the

possibility

interest

this issue,

According to the Central Han¬
over
Bank & Trust Co., trustee
for this issue, it currently holds

the

$125,000 of cash
mortgage. Also, because
improvement in earnings

the

Texas

under the

Mexican

Railway,

(all of those bonds and stocks

are

pledged; under the subject obliga¬
tion), an interest disbursement is
contemplated
bonds

about;

Such
pledged
$150,000, which

after allowing for the 27^% U. S.
Government

withholding tax lev¬
paid on foreign

interest

turnover in 1942
2

would

net

the

trustee

interest disbursement

the

Prior

contact

Lien

would

statement,

turnover in 1942

the
Current
listed

quotations

issues#

for

ported

turnover in

1942,

re¬

are

6s,

make

1933,

our

definite

Bid

Offered

Sinaloa-5/06-07

4'/2

none

Tamaulipas

4V2

6V2

5/03

Tamaulipas

5/06

5/02_T

Mexican-

4V2

Central

Ltd.
Pan.

Ry.

5/89-39_.—
Am.

RR.

5/07-37

Co.,

47'8

43i

—_

6y2

none

Mexico

—

"Throughout the month of May,
1942, the most remarkable turn¬
and

place

price
in

43/2%

developments

National

RR.

1926 bonds,

and in

opinion the writer of the

ar¬

men¬

That

Mexican

all

the

above

listed

issues,

including
us
but not

those

Bankers

Mexico;

feature, outside
under
the

'assented'

cash

received,
a

that

mentioned

the

trustee

payment. On the

basis of the $233,750 cash indi¬
cated, a disbursement of about
$10 per $1,000 bond would be pos¬

being

might consider

addi¬

Huerta-Lamont

Agreement, in so
they are secured also by a
lien subject to existing mortgage
on
the Texas-Mexican Railway,
situated entirely within the U. S.
far

6V2

4V2

Veracruz

41/2% 1926 bonds have

tional

follows:

intimated

but

additional

above

That National RR. of Mexi¬

above, that have remained

without

sible.

territory,

reason

The Texas Mexican Railway re¬

ported

$319,155 income available
charges in 1941, up
from $97,365 in 1940; and for the
for

deposit

initial

Bank

Trust

Company,

the entire issue of first 7%
Of

Corpus

Christi,

Grande

Rio

narrow

quarter,
earnings
charges recorded a
gain to $111,371, from

$56,321.

Cash

available for

bonds

San ' Diego,
gauge Rail¬

the

road

amounted

Co.; of Texas Mexican Rail¬

way

1942

further

with the trustee, the Central Han¬
over

fixed

double

and
of

cash

Mar.

$425,940,

year-earlier

items

31,

1942,

than

resources,
Co. first 6% Railway bonds;
while current assets of; $839,560
and of $2,495,000—out of $2,500,compared with current liabilities
.000—capital stock of Texas-Mexi¬
of $348,437. Thus, this Texas line
can Railway Co."
appears to be in a favorable posi¬
In connection with the forego¬
tion to make the cash disburse¬
ing, Standard & Poor's Corp. is ment in
question.... 'V,which, we
said to have made the following
believe, will explain sufficiently
observations, at the request of one the activities in this
particular
of our subscribers:
issue throughput May, 1942.
Complying with your tele¬
A few days ago an article in
phonic request of May 27, we are the financial section of the
New
way

York "Times" mentioned that the

London

Stock

Exchange "greeted

Mexico's entry into the war as

for
v

ally of

discriminating clients
carefully-selected; outstanding office perto

are

unusually qualified

efficient personnel

bankers

and brokers,

the

Jolin St, New York

various

;

with

higher

Mexican
,

QUOTATIONS

Mex.

Govt.

May 1, '42 June 1, '42
8'/2—9V2 12 Vi—13 ;
9
9?4 12%—13Y*
4/10-45-1 7»/2—8Vi
9%—10Va

Mex.

Govt.

4/04-54— 7V2—8Va

Mex. Govt.

■

Govt.

Mex. Govt,

6/13-33

5/99-45

—

7%—8%
4^/26 7'/2—8
—

Natl.

RR. Mex.

Natl.

Tel. COrtlandt 7-7455

RR. Mex. 4/51—

Natl. Rvs. Mex. 41/2/57

9%—lOVfe

Irrig.

4>/2/43

Nations

much

very

LONDON STOCK EXCHANGE

supply experienced and

investment

United

securities listed in London.'.'

Mex.

the

registering
prices for

sonnel, both men and women, in the com¬
mercial, professional^ and advertising fields.

6s,

from

1-1263

$108,750. If this payment
is made, it would bring the trus¬
tee's
cash
holdings to roughly
$233,750.

Pan- American RR. of Mexico:

associated

Wall JStreet,' New York City; Mri
Farreli
and
Mr.
Sullivan
were

about

Ry. Co., Ltd.:

5/89-39
5'/c

offer their facilities

sion, closes a loophole in the pro¬
tections
against fraud adminis¬
tered by the Commission by pro¬
hibiting individuals or companies

Teletype

disbursement

securities,

Mexico:

3'/a

Fitzgerald Co;

have

2-8070

you herewith a
brief review of the National Rail¬

ied

4V2/97-47

Farreli & Sullivan

ously existing rules against fraud
;in the purchase of securities ap¬

Nelmes Personnel Service

in connection with the
purchase of securities. The previ¬

plied only to brokers and dealers.
The new rule, says the Commis¬

4/97-77

any person
•

5-2£

''^4;

Exchange
the adop¬

5-29

4'/a

predecessors, and held member¬
ship in the Los Angeles Stock
Exchange.
"

478

4Va

•.

RR.

Broadway, New York, N.-.Y.

HAnover

ANGELES, CALIF.—Her-

*■"

5V4

5/1902_^_

schel F.

V-

Christy has become asso-f mentioned -by
men¬
/Inc., in 1940-41. He was also one ciated with Crowell, Weedon & tioned in
your article,
(are) are
of the organizers of the Cleveland
Col, 650 South Spring; Street; included in the so-called De La
Security Traders Association.
members; of
the
Los
Angeles Huerta-Lamont
Agreement
of
At Prescott & Co. Mr. Liston
Stock Exchange. Mr. Christy was 1922-23, which is administered
by
will specialize in over-the-counter
the; International
formerly a principal in O'MelCommittee
of
sale work.

our

Chronicle)

securities, syndicate, and whole¬ veny-Wagenseller & Durst

•

5/07

tioned:
Financial

7Va

;

—

International

Mexico

9
(Special

ticle in question should have

Regional

Christy Joins

3V4

1895--.:

5/03

5/89 ;

took

National Security Traders Associ¬

Association

Veracruz

the

terms.

H. F.

—

V;,. '-■ Veracruz

Secretary of the

ation in 1938-39 and
.Committeeman

Chisholm

con¬

Geyer-Hecht,
'

over

,ner

nected

Meek,

5-2E

4V4

Tamaulipas -5/1906.^

5-26

47/a

5/06-07-

Mexico City D. F.:

INC.
Members New York Security Dealers Assn.

approximately

1—

Tamaulipas

Home, Peter P. McDermott & Co.,
and Standish M. Perrin, Winthrop,
Whitehouse & Co., were elected
directors
for
four-year
terms.
Anthony A. Smith, G. H. Walker
& Co., and John F. Power, East¬
man, Dillon & Co., were elected
directors for three-year terms, and
Ernest H. Hochstuhl, Stocks, Hoyt
&
Co.; Lionel F. Stern, Ward;
Gruver & Co., and Percy Friedlander, Astor & Ross, for one-year

years

many

Sinaloa

retiring
President, John J. Tuffy, Hirsch,

security

and

47/8

37/e

Mexican States:

was

Thomas

district's

market

Co.

5'b

V,*; 5'/p -Silver bonds

Co., was chosen Treas¬
urer,
and
Douglas
V.
Ellice,
Fahnestock & Co., Secretary.

over-the-coun*

I ter

L.J.GOLDWATER&CO

3Va

-j

Silver bonds 1885

Dillon

irJ

specialist

Pont

5-22
6-

3»/a

year &

4V2/04-34

Participations

Complete Statistical Information

7Va
6%

Veracruz & Pacific RR.:

named Vice-Presi¬
dent; Donald C. Blanke, Eastman,

Liston i

i has

65a

7J/a

7V4

Allyn C. Donaldson, Francis I.

Chapman,

today.

•

Stock

■

Chapman.

Trust

Co.V

1-1-33, with particular reference

'3'/2

two

,;•#.;> 4/02-51
,4^/02-26'

Armand
E.
Fontaine,
Merrill*
Lynch, Pierce, Fenner - & Beahei
President, ;to succeed Thomas Bj
Meek, Francis I. du Pont & Co,
and Chisholm &

6-:

)

three year notes—_
National RR. of Mexico:
/;
f;

Customers
Brokers of New York has Selected

mem^

ac¬

announcement it

;

•

York

Association

6- i

National Railways of Mexico:
4

67,a

4j/2/08-43'

...

7'/a

'6/13-33
I,;

Mexican /Government:

Presicott & Coi Staff

Date

4/07-77"

The

Corwin Liston Joins

Recent Sales

;

4/10-45

.6%

Ctfs.

Title

road Co. of Mexico Prior Lien

5/99-45

;

Telephone Whitehall 4-0650

Bank

Co.

other

pleased to give

Price Range 1942

Mexican Government:

Customers'Brokers

wall street

Title

Mtge.. Co,

all

This data is given, along with

record, herewith:

for J. A. Sisto & Co.

-Member Los Angeles Stock Bxchange

Lawyers

of one. of our subscribers

Smith, formerly
wholesale and syndicate manager

——W—1

Inquiries Invited Jn

Bond

consequence,
have been informed that the quotations contained in the
study did

Specialists Jn

Lawyers Mtge. Co. ,Ctfa.

not

t'i|

Are

REAL ESTATE SECURITIES

The article carrying the above caption, which
appeared in our
4,-in the Bond• Selector column, had been submitted
by the author in advance of publication date and, as a

ing

/ ;11 v/;1

C.v\

issue of June

If SECURITIES ;

;

specialize in the sale of highgrade producing oil royalties
.In
order to broaden its distribution^
a wholesale department has been
Kenneth

-,v

and

established under the direction of

TRADING MARKETS

r 1

•

Position of the External Debt

York

The

i'.

laboration With The United States and Strengthens

Schappert-Teden^

•

Yi'

Recent War Declaration Points To Closer Economic Coir

Changes Name Of Firm

In the rate of

foreign

United States of Mexico

Schappert-Teden Co.

(Continued

4Va—5l/a
6

—6Va

on page

9V2—lOYa
8V2— 9'/2
6%— 7Va
7%— 8

2205)

• v

CHRONICLE

THE COMMERCIAL & FINANCIAL

2196

Thursday, June 11, 1942

Chicago Committee

PERSONNEL ITEMS

5% Pfd.

American Colortype Co.,

Indiana Gas & Chemical Corp., Common

Pettibone Mulliken Corp., Common

Chicago North Shore & Milwaukee
R. R. Co., all issues
Minnesota & Ontario Paper
5's due 1960

If you contemplate making
send in particulars to the Editor

additions to your personnel, please
of the Financial Chronicle for pub¬
s'

lication in this column.

Co.

CITY—Harold J.
Reed, formerly

YORK

NEW

Cone and Fred W.

HICKEY & CO.
'v; • ^.
•

now

are

Inc.,

Co.,

was

previously with

Three'^Witih Pasadena Corp.
Financial Chronicle*.

PA&ADENA, CALIF.

Keith

—

Westbrook Nusbaum, John

Curtis

have
become associated with Pasadena
Corporation, 234 East Colorado
Street.
All were formerly with

Seventh

the

(Chicago)
June

2, with the announcement by C. S.

with
150

Chronicle)

Morgan

anaugh,

Co.,

has

be^

Executive Manager

of the Vic¬

Co. and Bond &

Illinois.

(Special to The Financial

with

Chronicle)

New

the

Britain

office

leave of absence by

his firm

CINCINNATI,

CALIF.—Cyrus
has become associated with

Peirce

staff

the

Wilson,

Johnson

Higgins, Inc., Central Bank Build¬

Hill, Richards & Co.
LOS ANGELES,

Commerce Building.

vestment counsel.

the association with them

has

Exchange

Walter

Brailsford,

COLO.
now

—

Hugh

connected

C. land. Mr. Woodland

with

Co. for ten years.

membership in the Chicago

Stock

DENVER,
Pearson

LOS

former¬

(Special

to The

Financial

Chronicle)

POMONA, CALIF.—Charles B.
Ewing has become affiliataed with

The Financial

ANGELES,

Chronicle)

CALIF.

Charles E. Frankel, Jr.,

623
—

Esther R.

Heyne, and Margaret Sheedy have

joined the staff of II. R. Baker &
Co., Bank of America Building.

Rodger

was

ly with F. P. Ristine & Co.

Pacific
(Special

department of

Otto Rothe and Lewis W. Wood¬

(Special to The Financial Chronicle)

posted for the transfer

been
a

in their investment

Application

—

nounce

Co., Security Building. He was
previously with R. G. Bulkley &

S. E. Member

CHICAGO, ILL.

Company

South Hope

Mr.

Ewing

the

was

Pomona

California,

St., Los Angeles.
previously

office

with

Merrill

Lynch, Pierce, Fenner & Beane
and was with Crowell, Weedon
&

Co.

Co., Chicago."

"DALLAS

Klein In New Quarters
Contrary

Bought

—

Sold

—

Quoted

Wall

Dr. Pepper

;

Great Southern Life Ins. Co.

ins. Co.

Dallas Ry. & Ter. 6% 1951
All Texas
Check

Utility Preferred Stocks

us on

Southwestern Securities

RAUSCHER, PIERCE & CO.
DALLAS,

TEXAS

Ft. Worth-Houston-San Antonio

DETROIT

LISTED AND UNLISTED

present trend

the removal of their of¬

Webster, Marsh & Co.

in the Federal

District

Seventh

;

In Armed Forces

John Hay ward, member of the
St.

Louis Stock Exchange and a
partner in Harry Hall Knight &
Co. of St. Louis, has been com¬

Klein and his

associates will celebrate the firm's

second anniversary.

branch

Bennett &

missioned
U. S.
at

office

Brown,

Johnson, has been
Lieutenant

com¬

the

Navy and will be stationed

the

Naval

Air

Station,

Detroit

Penobscot

Stock

Exchanf*

building.

N. E. G. & E. Interesting
The New

tric

England Gas & Elec¬
earnings trend,

Association's

tax

detroit,

mich.

to.

situation, possibility of tax
relief, and outlook for debentures
are
discussed in a four-page re¬
port by Bond & Goodwin, Incor¬

in.

ST. LOUIS

porated, 63 Wall Street, New York
City. Copies of the report may
be

had

upon
'■iif'J

Bond

St/%

Co.

SAINT LOUIS
t

Louis S.

The

Fulton

and

Co. of

County

Loan

Federal

fishing

trip in New Brunswick.

RAILROAD
PUBLIC UTILITY
AND

INDUSTRIAL

Stock

Exchanft

President,

Stern,

Chicago; Harold L. Stuart,

Securities Co.

learning more about insured Fed¬
eral
Savings and Loan, invest¬
ments
full
particulars.
Current
dividend rate of 3%% per annum.

Chairman, Wayne Hum¬
Thomas E. Murchison,
Vice-Chairman, Paul H. Davis &
Co.; Clarence J. Bridgen, Paine,
Webber & Co.; Joseph E. DempBarnes,
mer

& Co.;

sey,

Dempsey-Detmer & Co.; and

Charles R. Perrigo.

Incorporated

CHICAGO

announced the

also

Betts

Mr.

reappointment of the four present
advisors:
Messrs. Sheldon Clark,
Charles Y. Freeman, Lee Higginson Corp., Edward B. Hall, Harris,
Hall & Co., and Bentley G. McCloud. Mr. Clark has been an ad¬
visor of the Board since inception
of the plan to invite non-members
to serve in such capacity in 1937.
Kenneth

Smith

was

re¬

Sidney L. Par¬
ry and C. Russell Bergherm were
reappointed Vice-Presidents, Wal¬
elected President,

ter R. Hawes was

renamed Secre¬

tary and Carl E. Ogren, Assistant
Secretary.
from Assistant Treasurer to Treas¬

Whipple & Co., Chicago.

urer

to succeed Martin E.

who

was

William F. Black was advanced

Nelson,

named Treasurer Emer¬

Charles T. Atkinson was re¬

appointed Secretary Emeritus.
•
Mr, Nelson, who has served the

To Admit L Preston
shortly
Mitchel,
Whitmer, Watts & Co., 14 Wall
Street, New York City, members
Alfred

become

I. Preston will
partner

will

and

act

Exchange,
on the

alternate

floor of the Exchange

for Ormsby

Mr. Preston was
in Winthrop,

Mitchel, Jr.

formerly a partner
Mitchell & Co.

Thompson Ross

Cathcart,

Finance:—James

Chairman, Harris, Upham & Co.;
Walter J. Buhler, Vice-Chairman;

The

M. Kidder Outing
partners and employees of

A. M. Kidder &
the

New

York

Co., members of
Stock

Exchange,

Annual

Outing

Saturday, June 6, at the

Timber

held

their

77th

Point Country

Exchange for 39 years, will con¬
tinue as an active member of the
an advisory capacity.
Halsted, of Scott, MacLeish

staff in
Jess

Falk,

was

reappointed Counsel.

Condon Opens Office
For Van Ingen in Ghgo.
CHICAGO,

ILL.—The

munici¬

pal bond firm of B. J. Van Ingen
&
Co., Inc. of New York and

SECURITIES

Association,

and other fiduciaries interested in
Louis

Cormick & Co.

Halsey;' Stuart & Co., Inc., Chi¬
cago;
Jay N. Whipple, Bacon,

Lot Muncipal

gia Building, Atlanta, Ga., will be
glad to send investors, trustees,

St.

Lawrence

Ground Floor Trust Co. of Geor¬

Members

Bank

American National Bank & Trust

Lebenthal, of the Odd

Bond firm of Leb¬
enthal & Co., 135 Broadway, New
York City, has left for a

Chap¬

Brown,

of the New York Stock

Investors And Trustees
Savings

509 OLIVE ST.

National

LebenthaJ Goes Fishing

MUNICIPAL

Insured Investment For

itus.

Goodwin

re*

;

First

Chicago office.

request.

"->■ :

from

firm has closed its

Ralph

Buhler;

Farwell, Chapman & Co.; and
Dean McCormick, Kibbon, Mc-

man,

M. Ralph Cleary, Cleary & Com¬
President,
pany; Thomas E. Hosty, Sincere
Chicago;
& Co.; and Charles R. Perrigo,
Philip R. Clarke, President, City
Hornblower & Weeks.
National Bank
& Trust
Co. of
Floor Procedure:—Hugh H. Wil¬
Chicago; Walter J. Cummings,
son, Chairman; John C. Stewart,
Chairman,
Board
of Directors,
Vice-Chairman, Hixon, Stewart &
Continental Illinois National Bank
King; Lyman Barr, Paul H. Davis
& Trust Co. of Chicago; Howard
& Co.; William W. Haerther; El¬
W. Fenton, President, Harris Trust
mer A. Kurzka, Fred W. Fairman
& Savings Bank, Chicago; Herbert
&
Co.; Frederick J.
Stannard;
L.
Horton, President, Iowa-Des
John E. Wheeler, Hicks & Price.
Moines National Bank & Trust
Judiciary: — Reuben Thorson,
Co.; William G. Irwin, President,
The Indiana National Bank of In¬ Chairman; Thomas E. Hosty, ViceChairman; John J. Bryant, Jr.,
dianapolis; Walter Kasten, Presi¬
James H. Oliphant & Co.; Joseph
dent, First Wisconsin National
P. Brown; and Morton D. Cahn. ■
Bank, Milwaukee; Walter S. McNew Business and Public Rela¬
Lucas, Chairman, Board of Direc¬
tions:—Roy E. Bard, Chairman,
tors, National Bank of Detroit;
Solomon A. Smith, President, The Clement, Curtis & Co.; M. Ralph
Northern Trust Co, of Chicago; Cleary, Vice-Chairman;1Leo< M,
Lawrence' F.
Stern, President, Apgar, Apgar, Daniels & Co.; Ir¬
American National Bank & Trust ving E. Meyerhoff; Alger Perrill,
Alger Perrill & Co.
Co. of Chicago.
Special Committee on Commis¬
Investment Bankers
sion
Schedules: — George
E.

Edward

a Captain in the United
Army.

States

Quonset Point, Rhode Island. The

Members

savings issues.

war

missioned

cago

Next month Mr.

Charles A. Parcells & Co.

other than

Walter

Rod¬

Shields & Co.;
Vice-Chairman;

man,
Chairman,
Alfred E. Turner,

Treasury financing,

with

nection

Clifford

Admissions:—T.

Commit¬

Robert W. Baird, The Wisconsin
Co., Milwaukee; Emmett F. Connely, First of Michigan Corp., De¬
troit; Paul H. Davis, Paul H. Davis
C. Wickham Moore of Smith, & So., Chicago; Charles F. Glore,
Moore & Co., 509 Olive Street, St. Glore, Forgan & Co., Chicago; Ed¬
Milton F. Klein
continues as
Louis, Mo., is serving with the ward B. Hall, Harris Hall & Co.,
sole proprietor of the firm and United States
Chicago; Francis F. Patton, A. G.
Army.
has
associated
with
him
Rudy
Becker & Co., Chicago; Harold L.
Klein, Office Manager; William N.
Stuart, Halsey, Stuart & Co., Inc.,
Dwight C. Rose, President of
Portnoy, Sales Manager, and Ed¬
Chicago; Jay N. Whipple, Bacon,
the Investment Counsel Associa¬
ward
Ruskin, Manager of the
Whipple & Co., Chicago.
tion of America and a partner of
Trading Department.
An Executive Committee, con¬
Brundage, Story and Rose, New
Last year M. F. Klein Co., as
sisting of six men with extensive
York City, has retired temporar¬
experience in the securities busi¬
underwriters,
marketed
65,000
ily from that firm to accept a
shares of the Phillips Pump &
ness,
consists of the following:
commission as Lieutenant in the
Tank Co. Class A stock and also
Robert W. Baird, The Wisconsin
United States Navy.
65,000 shares of Moline Pressed
Co., Milwaukee; Philip R. Clarke,
Steel Corp. Class A.
At the pres¬
President, City National Bank &
Frederick
F.
ent time both of these companies
Johnson,
Vice Trust Co. of Chicago; Edward B.
President and Manager of the Chi¬
are
engaged in extensive war
Hall, Harris Hall & Co., Chicago;

quarters, which were formerly oc¬
cupied for many years by Zimmermann & Forshay, on the sec¬
ond floor at 170 Broadway, New
York City.

work.

SECURITIES

■

the

fices from the third floor to larger

New Mexico Gas Co. Com. & Pfd.

Southwestern Life

Street, M. F. Klein Co.

announce

Republic Insurance

the

& Co.; Homer P. HarMerrill Lynch, Pierce, Fen¬
Beane; and Harry M. Payne,

with headquarters

Reserve Bank Building.

Commercial Bankers

Bosworth, Chanute, Lough ridge &

To Be Cgo.

Moseley
grave,
ner &

ing.

to The Financial Chronicle)

(Special

CLEVELAND, O.—Frederic W.
PHILADELPHIA, PA. — Rey¬
Staff eld has rejoined the staff of
McDonald-Coolidge & Co., Union nolds & Co., 1500 Walnut St., an¬

Richards & Co., 621 South
Spring Street, members of the Los
Angeles
Stock
Exchange.
Mr.
Peirce formerly for many years
conducted his own business as in¬
Hill,

confirmed

were

accept the position. Mr. Pat¬
ton is to take charge immediately,

The

inick for many years.

Chronicle)

which

Committee for
Mr. Young stated

Fund

tory

O. —Gilbert A. Goodbody & Co.
tee, of Which Mr. Young is Chair¬
Davis
and Maxwell W.
Fuller
the local office of Conrad, Bruce
(Special to The Financial Chronicle)
man,
consists of 10 commercial
have become affiliated with W. E.
& Co.
OAKLAND,
CALIF.—Madison bankers and 8 investment bank¬
Hutton & Co., First National Bank
It is one of 12 such com¬
Lee Howell, previously wih E. F. ers.
Building. Mr. Davis was formerly
mittees which will be used in con¬
connected with Dominick & Dom- Hutton & Co., has been added to

(Special to The Financial

recently re-elected Chairman

was

of the Board for the fifth consecu¬

NEW BRITAIN, CONN. —Ar¬
Straus Securities
Goodwin, Inc., of thur J. Marieni is now with Tifft
Brothers, 125 Pearl St., Hartford,
Conn. Mr. Marieni was formerly

with

formerly

Wilfong, and Roland Yoder

Cyrus Peirce Now With

Exchange held June 4, Arthur M.
Betts, Alfred L. Baker & Co., who

this Board: '
Executive:—Emmet G. Barker,
come
connected
with
Thomas district.
that
CHICAGO, ILL.—Harry S. Al¬
Bennett &
len has become associated with Kemp & Co., 210 West Seventh St. Mr. Patton, Vice-President of the Chairman, James E.
A. G. Becker & Co., Inc., Chicago Co.; R. Arthur Wood, Vice-Chair¬
Thompson Ross Securities Co., 39
(Special to The Financial Chronicle)
investment house, had been grant¬ man; F. Fletcher Garlock, F. D.
South LaSalle St. Mr. Allen was
(Special to The Financial

New York

taken

Federal Reserve District

Company.

R. James, Jr., formerly with Cav-

CO 1234-5-6

Direct, private wire to

(Speclalto The

Co.,

Baker

Heyne

CHICAGO, ILL.—At the annual
Another step in completion of
plans to support the war financ¬ organization meeting of the Board
of Governors of the Chicago Stock
ing work of the Treasury. was

Young, President of the Federal
Reserve Bank, that the Secretary tive time, appointed the following
(Special to The Financial Chronicle)
of the Treasury had approved the standing and special committees
LOS ANGELES, CALIF.—John appointment of Francis F. Patton to serve for the ensuing year,

Broadway.

CHICAGO

"'^'•Teletypes:

Burr

Amott,

SALLE STREET

SOUTH LA

135

Mrs.

Bankamerica

Chicago Stock Exch^
For Victory Fund Appoints Committees

Miami^ announces the opening of
a

Chicago office at 135 South La
Street, under the manage¬

Salle

ment of Raymond V.

merly

Condon, for¬
Vice-President of V. P.

Oatis & Co., Inc. of

prior thereto for
Blair

Securities

Chicago, and

many years

with

Corp. and Banc-

Club, Long Island. america-Blair Corp.

Volume 155

Number 4080

THE COMMERCIAL & FINANCIAL CHRONICLE

Guaranteed

Tomorrow's Markets

Position of Certain

Railroad

Underlying Mortgage

Liens of the Missouri Pacific System

Stocks

Walter Whyte

2197

Circular

Canadian Pacific Ry.

Request

Says—

Mmlurt Hrw Y*rk Sttth

3'/zs

Exrfuuft

Dealcrt la

Broadway

GUARANTEED

Members New

2-6600

Sine* 1855

Recent strong market fed

Midway

by
naval battle neWs.

Present

outlook

minor
new

setbacks

strength
By

the successful raids

Teletype NY 1-1158

Congress has the
only when the
glare of full publicity on indi¬
vidual votes is on it, then
by
all

take the tax bill out
Ger¬ of committee and place it on
the floor in open debate so
of

every
tor VOted.

off.

market

some

news

little

all know how
Cngressman and Sena¬
may

going.
Well, it got it—the Jap attack
on
Midway and its rout by
forces.

Meanwhile

saying, as
writing claim, that the

this

not available but

and

over

than

enough

the

not

complete details of the attack
are

•

closer to home to get it

our

market

some

satisfaction.

Coast.
*

❖

Washington the

pointing to their recent excellent market action in contrast

ism.

hand

the

outlook

longer as dark as it was on,
said $46. Then the; Sehators and shortly after, December
insisted the whole thing be 7th.
brought to the floor and voted
This doesn't mean that the
upon. Right away our cour¬
market will now
go straight
ageous Senate, realizing that
:

its vote would become

up;

markets

the

way,

but it does

part of
public record (and who

don't

act

mean

that

that the

lows of last

❖

and

perhaps dying are worth
Of course this
than a windy Congress
being a mar¬
ket subject to the
seems willing to give
vagaries of
them.
But that isn't the point. The news and rumors wilder than
point is: that behind a curtain most* it will go down again,
but I don't

think that a deanonymity of. committees
(Continued on page 2204) 7
bur elected representatives,
these guardians of our lib¬
Hirsch-Lilienthal To Admit
erties, are perfectly willing to
Louis A. Mollard will
do one thing. But let the pro¬
shortly
be
admitted
to
partnership in
ceedings become public and Hirsch, Lilienthal &
Co., 25 Broad
the
whole
thing changes. Street, New York City, members
of the New York Stock
Courage! Independent think-;
Exchange
and other Exchanges. Mr. Mollard
ing! What a joke!
of

77;77:v.

■'7

men

in the service or

will act

of the

alternate

the floor

New York Stock Exchange
for Daniel T. Pierce, Jr.
.

regular pay-,
ments to their dependents
have j little to do with the Defaulted RR Bond Index
-

market. But5 it; is. a clue to
what? Congress, will do if it.

;

The defaulted railroad bond in-;

dex

gets around to acting on Rust,
a

lot to do

Pflugfelder, Bampton &

Brdadwayi

New

York

City, shows the following

range

on the part of the invest¬
ing public that, regardless of its
longer term prospects with a re¬

able

gen¬

mated that Southern Pacific
may
net
income
of perhaps

realize

maturity. Furthermore,
public buying is presumably
being augmented by additional
purchases by Southern Pacific and
its wholly owned subsidiaries. On
a
quality basis, and in the event
of reorganization of the obligor,
the

the Secured 3%s could hardly be

placed in the

same

class with the

the

(When

Members

Ntto

Issued)

York

Stock

Exchange

York

can

Chicago

industries

new

the

manufacture

record

volume

Pacific's .freight busi¬
More
important from an

Southern
ness.

operating standpoint, have been
the sharp drop in steamship com¬
petition and the unusually heavy
of

goods

westward

movement west. To

back with
than

bring the

cars

load rather

revenue

empty .involves

relatively

little extra expense.

Even

those

Southern
remain

Pacific's

business

reduce

will

high levels throughout
1943 at least. The heavy subma¬
rine
toll
of
shipping and the
probable need for a large steam¬
ship tonnage for foreign service
in the opening stages of the post¬
war
period minimize the possi¬
bility. of a near term resumption

the

maturities

aggregate

drop in

serious

intercoastal

competi¬
Also, many - of the new in¬

tion.

dustries; established and being
tablished

under

heeds

war

the

may>; be

year.

The

have

of
considered

1942

now

high level of

established and

earn¬

would
spell of
six years to prepare for its
company

breathing

Derickson Lieutenant
substantial concessions below

•at

prevailing levels for coupon bonds
of

same

issues.

Inquiries

PHILADELPHIA, FA.-John H.
Derickson, Jr., formerly in charge
the Municipal Department of

E. H.
been

Invited

Rollins

tenant

LEROY A. STRASBUR6ER & GO
1

WALL

WHItehall

NEW

ST.,

3-3450

Teletype:

1-205®

activities during the past
year and a half.

obligations

equipment

Southern

Pacific

and
pur¬

chased

retired

and

RFC

loans,

$39,800,000
the

year,

000,000
bank

at
were

total

441,500 face value

the

beginning of
to $15,by

accommodation.

Bank

totaled

reduced

represented

payments

$34,-

of debt.

which

maturities

outstanding with the
public to $8,727,000 and the 1946
repre¬

Secured

3%s.

Aside

from the regular serial equipment
more

than

by depreciation, the

com¬

are

partner

Clark

iri

members

will

floor

will

cern

year
half at least, the main con¬

covered
pany

has

other bonds to meet

the

New

blocks

^vest6rs;iis the Use being

inquiries

odd lots of

HIGHEST GRADE RAILS

made of thd profits. On this ques¬

act

Exchange for Harry

alternate

the

WERE NEVER

MORE TIMELY
OIL

vital

for

the

of modern,
ized warfare.

uses
for oil are constantly
being developed by modern re¬
search methods, including the

manufacture

SYNTHETIC

RUBBER.
OIL RO YALTIES OFFER:
Direct participation, equivalent to
Ya of the gross amount of crude
oil

produced;
Monthly returns, without deduc¬
for drilling,
operation and
maintenance;
CJiecks mailed monthly by the
leading independent oil compa¬
tions

direct

investors

production
price of oil.

for

their

the

cur¬

We specialize in offering Oil
Royalties
to registered dealers.
Send for Sched¬
ule

"A"

filed

■current:

THE FLORIDA ROAD

with

S.E.C.

offerings,

TELLIER & COMPANY
Members

Eastern

Oil

Royalty

Association

co.

:<;7« Biy.C.Tele. NY 1-1293

mechan¬

New

rent

specialists in tails

successful

operation

6s/35 Bonds & Ctfs.

11 wall street

and

the

nies

HAnover 2-9175

York

Stocjc.. Exchanges.

OIL ROYALTIES

SEABOARD
ALL FLORIDA

Hano,

office at 39 Broadway.

Wo also mainiain net markets in

1. h. roihehild &

Grabosky and will have his head¬
quarters at the firm's New York

As brokers we invite
on

Army.

become

Newburger

Philadelphia

month

The bond purchase program
reduced the amount of the 1943

maturities, which

Depart¬

Newburger-Hano To Admit

far in 1942 and should

entirely eliminated in

the

has

has
pre¬

or so.

sented

Inc.,

First Lieu¬

serial

This

been reduced to $3,750,000
be

trust

wholly owned subsidiaries

its

Sons,

Ordnance

YORK

own

Exclusive

the

ment of the United States

John
its

commissioned

presum¬

ably in prospect for. another
and

level, this

Registered Form

econ¬

of Southern Pacific's terri¬

omy

tory. With

1946

Even

next maturities.

urgency

permanent accretions to the

ings

es¬

1943 earnings be¬

•

$41,300,>000.

low the indicated

some

visualizing a short maturities to
$64,904,000. Of the
the probability
that latter amount, $52,308,000

admit

war

ex¬

armaments,
the
urgent
ship¬
building program, etc. have all
been
important contributary
causes

then

supply several lots of

RAILROAD BONDS

can¬

aircraft industry
the west coast, establishment of

1946
pur¬

average price of 90 (they have
sold well below that in the
year
to date) this would be sufficient

service area,

for
the

entirely, eliminated by the end of

major border line

Pacific. Large

Southern

balance of

$21,200,000
Applied to

dynamically from
the
business
upturn and transportation dislo¬
cations arising from the war as
has

some

balance could be
practically, if not

question of quality and prob¬
reorganization status exerts
only a minor market influence.

benefited

than

maturities.

with

New

the

has

probable that

1943 maturities with

able

condition,
$45,000,000 of such
earnings could be util¬
ized for debt retirement. After
allowing for the $15,000,000 bank
it is

Bear, Stearns & Co.

underlying

that,

Considering

chase of the 1946 maturities at

security
collateral. Under present condi¬
tions, and with the belief grow¬
ing that the war may be of shorter
duration than formerly expected,

carrier

1942.

financial

$30,000,000 for bond purchases.
This would provide for the entire

Securities

better Southern Pacific mortgages
due to the questionable nature of
some

excellent

outstanding at the begin¬
ning of the year, this would leave

Reorganization

term

near

problems.

loans

Railroad

this

meet

bond "reduction

Southern

peace economy,

will

with business and the market r for; Jan. L 1939i "to date:
High^-- tion" the- management of Southern
that reflects its state; It seems 40%; Iqw—14%/ last 34J/2.
V.: : Pacific may point with pride to

fidence

movement

taxes which have

;

On the basis of results to date
and the excellent
prospect's. over
the balance of the
year/it is esti¬

$50,000,000.

ever

.■<

Toronto

It is expected/ there¬

the 1943 and 1946

the

April need not be
what
with election
tested again to assure the be¬ since the opening of the Pacific
war.
The
coming up they might not be
former has
brought
lief of an
advancing market. profitable long-haul traffic back
sent back to get special gas
On the contrary if such lows to the rails while the latter has
ration cards), stood up and
are
even
threatened mildly brought a healthy balance of traf¬
said, okay, fifty bucks it is.
the picture will have com¬ fic. Normally freight movement
in the area is predominantly east¬
I think the men fighting pletely changed.
ward
with
a
large empty car
knows

salaries to

1-395

programs will be concehtrated on

in the rail list.
With other obligations of
marginal
fading consistently away to new low levels, the Southern
Pacific 3%s receded only a few points.
This firm underlying tone
may be traced to a growing con-<0—-—-—————
:——

seems

month. The Senate committee

course

lIAnover 2-0980

Montreal

future

eral uneasiness

saying tonments in the
having all known news pansion in the

that

carriers

news

play of "independence." The
House voted to give the men
in the armed forces $50 a

Teletype NY

New York

The Southern Pacific Secured 3% s, 1946, continue to attract a
considerable investment following, and railroad bond men have been

There is not

From

SECURITIES

RAILROAD SECURITIES

closer

believe. I think it is

Still, the market, a balancer
continues to be one of those of the news, good, bad or in¬
things. Congress, mindful of different, surveys the im¬
election, put on another dis¬ mediate picture with optim¬

Bell

Pacific

WILLIAM ST.,

fore,

turn to

something
entirely
already known to make it saying
different. It is saying that at
good news indeed.
*
long last instead of optimistic
In any case the market tak¬ and
assuring statements from
ing its cue from it did start on high, actual events that
up after just a few hours of can only be determined on the
hesitation. True, little of this field of
battle, are coming
rally has had the explosive true. Slowly but surely we are
quality we would all like to turning the tide against the
see. But in these
days of slim enemy. And that is cause for
pickings, when even meager rejoicing. The only place
rallies die aborning, it's some¬ where we are still
getting it
thing to look on with some in the neck is off the Atlantic
*

Teletype—OCX 1-310

until 1949.

is about

war

peace

people

REORGANIZATION

means

that

this

Bell

that if

tory wasn't dynamic enough
set

1956-1963-1973

HART SMITH & CO.

New York

RAILROAD

many and German held terri¬

needed

York Stock Exchange

Broadway

courage to act

news
over

1949

for

which

WHYTE

the

Telephone—DIgby 4-4933
Bell

can come.

WALTER

looks

calls

from

PFLUGFELDER, BAMPTON & RUST

Tel. REctor

STOCKS

NEW YORK

1951, 4s

United Securities 5%*-1952

120

1945, 3>/2s

Montreal Lt., Ht. & Pr.

Joseph Klalker * Sons

Established
42

Broadway
77

;

Dealers

•

7 ; L

1931

New York. N. Y.

BOwliny Green 9-7947
Teletype NY 1-1171

THE COMMERCIAL & FINANCIAL CHRONICLE

2198

DIVIDEND

NOTICES

DIVIDEND

Thursday, June-11, 1942'

NOTICES
'

American"

Hifjjr)

\M!!K/

Company
■

predecessor.

;

This

Common Dividend No* 12 9

clared

have

dends

are

fitly

payable

1942,

payable

record June 11, 1942. The
transfer books will remain open,

'.,

UNITED FRUIT COMPANY

a,c,r,

DIVIDEND

American Car and Foundry

Company

-''**"30

•

V-

capital

Church Street

New

York, N.

clared

There has been declared, out

dividend of

the

stock of

preferred capital

record of said stock at the close

of business

will

July 1,
19, 1942.

June

New

York,

June 8,

WESTERN

Wick, Secretary

Notice
•he

tionery
June

ouch

hereby
$.50

Common

Dividend

No.

Checks

business

books

will

June

not

closed,

No.

Directors

'R.

Agent.

;

New

York,

;

DIVIDEND
of

NO.

Directors

meeting held this
dividend for
the second

Secretary.

Forty

Cents

capital

June

($.40)

stock

27th,

the close cf
>

this

1942,

business

June

interim

1942,

outstanding
payable

Company,

17th,

csrd

1942.

une,

the outstanding Com¬

the 19th

1942. Checks will be mailed.
DAVID

BERNSTEIN,

Vice President & Treasurer

The

1 HE

.\EtV

YORK
100

The

clared
per

dividend of V&'/t
($0.87''2
Capital Stock of the Com¬
July 1, 1942, to stockholders of

1942.

day

de¬

the

cn
.

the .close

The

transfer

business

books

New York, June 9,

will

w>f,

Elliott

and

Treasurer

record

COMPANY
'

West-Streets

New
bocks

York
of

until

July

held

1st,

■

June

20,

chse.

LITTLEJOHN, Secretary

the

American

Directors' Meeting
June 19th, 1942..

Friday,

BROWN,

Treasurer.

cated
now

that certain
offer both

appreciation

study states.

below

utility equities
yield and

liberal

possibilities,
A

detailed

the

table

showing that the

value

total

utility companies is well
values, even though

book

verv

are

conservative

computed
basis.

Addi¬
of

cer¬

costs
as
computed by the new
yardsticks recently developed by
the Federal Power Commission.
Probable earnings for 1942 are

based

various

tax

as¬

and

made

likely dividends and

yields

based

estimates
the

are

indicated

earnings."
'
Copies of the study may be had
upon request from
Goodbody &
'

the

)

far

one

of stocks affords a better
hedge than another type.; Insur¬
stocks

under the

afford

are

entitled

come

heading of stocks which

better than average war-,

time hedge.

Smitbfield, E. C. t

TOTAL

ASSETS

£98,263,226

Associated Banks:

Williams

Lives etc.

Deacon's

Bank, Ltd.

Giyn Mills & Co.

Philadelphia National Bank
Phila.
'

Transportation Co.

3-68 2039, Pfd. & Common

■

Australia and New Zealand

H. N. NASI! & CO.

danger of inflation has

relative sense—in

64 New Bond Street; IV; /

to hold

■

Charing Cross, S. W; I;

Burlington Gardens; W,

Girard Trust Co.

leaving very few,
if any, equity securities which can
approach this ideal of a wartime
hedge.

ance

Exchange Natl Bk. & Jr. Co.

Penna. Co. for Ins.

had the effect of

V-

1421

Phila.

Chestnut Street,

Phone

Locust
A

York Phone

HAnover

.Teletypo- PH 257

BANKOF
NEW SOUTH WALES

Philadelphi*
New

1477

2-2280

.«

(ESTABLISHED 1817)

Paid-Up Capital

£8,780.000

...

turing capacity, expanded output
finished goods, larger volume
of inventories and shipments both

Reserve

Fund

Reserve

Liability of Prop.

route and in warehouses^ larger
payrolls,; and the rise in the price
level, which necessitates increase

Aggregate
Assets
Sept., 1941

insurance

SIR ALFRED

'
,

Head

1941, on
fire and

30th

£150,939,354

DAVIDSON, K.B.E.,

General

larger in¬

cover

surable values, etc.
For
increases of 15% apiece,

6,150,000
8,780,000

£23,710,000

On this matter of taxes, for. ex¬
ample, the most important single casualty insurance companies
factor affecting equity securities reached the billion dollar
mark in
today,, insurance stocks are in a premiums written, and while a
better than average position. True, more moderate
increase appears
they are not immune from high likely for 1942, a favorable-volume
taxes—no segment of industry; is; outlook exists for the
duration.
but they possess a high degree of
But what of Government in¬
exemption from an onerous load surance? The Government has not

Manager

Office: George Street, SYDNEY

The Bank of New South Wales Is the oldest
and

largest bank in Australasia.

over

in all States of
Australia, in
Zealand, Fiji, Papua and New Guinea,
London, it offers the most complete

With

branches

870
New

and

efficient

traders

and

banking

service'to

travellers

investors,

interested

these

countries.

taxation.

institutional

LONDON

ing

OFFICES:

profits

usually good

combination

those*

were

of? corporation. The insurance com¬
panies have agreed to assume 10%
As of any deficit and participate in

un¬

years.

direct taxation is

concerned,
therefore, insurance stocks are not
in a crushing tax position.
as

Indirectly,
hit

however,

insurance

companies
with

the

lower

net

securities.

Faced

after taxes

this year and the un¬

certainties of early termination of
the war,

corporations
and be

less

would

mean

come

for

Two

(1)

going to

inclined

less

dividends

declare

are

this

stable

(2)

The

'">

Granted
is

that

increasing,

creasing
usual

however:
from bonds

income
and

thus

insurance

continued

paying
will

companies;
increase
in

volume of

Berkeley Square, W. 1

r >

Agency arrangements with Banks
throughout

better

the

stability

the

declines

than the general market.
their normally high

Because

ratio

•

ploughed back earnings, resulting
in compounded increase in
liqui¬
dating values, insurance stocks do,
if held over a period of
years,
afford better than average
results.

invest¬

ment
'.

Despite

wartime

not,

higher

effect

verse

taxes

and

ad¬

investment income,
outlined above should
on

therefore,

occasion

any

re¬

duced regard for insurance stocks
as investment media.
:

not

losses

in¬

Rising

losses

are

also?

volume

accompaniment

Scrap Rubber Drive
Announced By President

higher premium volume. This is
especially true at this time, be¬
of the all-out production ef¬
fort which increases the

President
on

Roosevelt

June 9 that

cause

exposure

losses, however, is not

aggregate increase

as im¬
their ratio to the larger
premiums.
Such
ratios

portant

earned

have

The

risen

announced

nation-wide

cam¬

paign to collect scrap rubber will
be started to actually deter¬
mine'how much is available. The

soon

President told his press conference
that

the

campaign

would

take

about two weeks,
indicating that it
would be voluntary if the
people

moderately and may
continue to- rise,
but the other fully
cooperated
otherwise
it
element in underwriting profits, would be
compulstory. Mr. Rooser
the expense ratio, has fallen as
velt explained that estimates on
the

increased

premiums written cre¬
ates a large inflow of new money
for investment by insurance com¬

premium

volume

ratio.- Thus

in loss

the investment of which
under present conditions is being
placed in Government and other

WARNER COMPANY

premium

losses.

companies.

Street, E. C.

ness.

panies,

this busi¬

taxes,
for

offset this,

Interest

$20,000,000

This

year.

will not be affected at the
end

mum

lower investment in¬

insurance

factors

10% of any profits up to a maxi¬

also

taxes

paying end of income from their

have

Threadneedle
47

insurance

favorable circumstances
far

in¬

invaded the regular field of in¬
companies.*are surance volume, its aim being to
entitled to a credit of up to 85% take over
lines such as war dam¬
of adjusted net income, on income
age and ocean marine hull insur¬
received
from
corporate
divi¬ ance, which-cannot be underwrit¬
dends, for both normal tax and ten on actuarial principles by pri¬
surtax purposes. For excess prof¬ vate
companies. In fact, in writ¬
its tax purposes, the majority of
ing-war damage insurance, the
insurance companies use the aver¬ Government's
War Damage Cor¬
age earnings alternative (95% of poration will do the business en¬
1936-1939
average
earnings), tirely through the insurance com¬
which affords them a high exemp¬
panies, which will act as fiduci¬
tion base, inasmuch as underwrite
ary
agents for the Government

vestors,

the securities of

FINANCIAL NOTICE

•

will

through its various offices a
special study of the utility indus¬
try. An extensive research indi¬

Co.

1942

r";r;

(•

•

1942.

ROBERT B.

economy

•.

Bisbopsgatei. E. Q 2

8 West
.

)

OFFICES:

closed,

this

quarterly

HARRY
}

has

the

sumptions,-

payable

record

COMPANY

share)

pany,

TRUST

Brondwr.y

Board

Trustees

DUNCAN,

MANUFACTURING

stock

shown
;

for

50c

Underwood

companies are shown to be
below the historical construction

the
30th day of June, 1942,to stockholders of
day of J

held

tain

Stock of this Company, payable on

record at the close of business

1942

tionally, the market values

meeting

Manufacturing Company will be closed for the
purpose cf transfer of, stock on June
20th, 1942

THE Board of Directors on the rate of
1942 declared
dividend at June 3rd,
on

not
S.

such book values

June 5, 1942

COMPANY

dividend

Brooklyn,

market

"THEATRES EVERYWHERE"

per

year

will

Noble

certain

mon

FISHER

Stock

books

presented

LANGLEY, Treasurer.

LOEW'S1NCORPORATED

50c.

Treasurer

able

•;

an.

the

BACH,

Goodbody & Co., 115 Broadway,
York City, has made avail¬

Company,

quarter

June

Utility Equities Look Good

1942.

259

stcckho'devs

WILLIAM

the

10,

declared

Common

business

New

this

Directors

1942,

quarter

the

CLARK,

controlled

'X ' *

!■.'

■"

„•

...

Fidelity-Phila. Trust Co.

living of in¬
vestors.
The
decision, however,
to finance this war through a com¬
bination of very high taxes and a

Honduras Rosario

Broadway,

Board

10,

AMERICAN

June

;

Beard

second

and

Coivir/ti* t

Mining Company

The

June

854

: New York &

120

ELLIOTT

declared dividend
No.
854
of
thirty-seven
and
one-half
cents
<$.373,2) per share of $12.50 oar value Capital
Stock, payable June 25, 1942 to stockhoMers
of Tecord 12:00 o'clock Noon, June 20, 1942.
Checks will be mailed by Irving Trust Com¬

1942.

The

issued

va'ue
of the
Tablet
&
Sta¬

Western

the

1942.

has

pany, Dividend Disbursing

div'derd

the

par

Company,
payable
June
So,* 1942, to
stockholder* <-'f record at the close cf business
June 20.
1942.

HAWKINSON

MlNiiNc*

Dividend
of

given that
share on

Central-Penn National Bank
Corn

the increased cost of

type

Corpora Hon has. been declared payable
30, 1942, to the holders of record of

Transfer

HOMESTAKE

Treasurer.

STATIONERY

;■;

perfect wartime hedge-,
equity security should' be in
a position to show gains in volume
and earnings, despite higher war-;
time operating costs, thus
making
possible higher dividends to offset
a

LONDON

investment3 in¬

Consequently, equity securities
today are only wartime hedges in

?isher

mailed.
E.

Stock

UNDERWOOD

1942.

Board

•<

without

1942.

15,

; June 4,

stockholders

CAMERON,
1942.

twenty-five cents ($0.25) per
Share on the common stock, without par value,
of
this
company
has been
declared,
payable
June 30,
1942, to the stock holders of record
Transfer

To be

down

Treasurer

per

.9,

MANUFACTURING COMPANY
dividend

1942

TABLET

rate

lommon

ALUS-CHALMERS

;

UDELL,

1942.

18.

CORPORATION

J. Hardy, President

June 4.T942

June

lower

outstanding

The

de¬

to stockholders of

business

Checks

closed.

not

Howard

payable

tany,

•ecord

Charles

1942

Guaranty Trust Company

be mailed by

the

Company ' has ' been

15,

share-

per

THE UNITED STATES LEATHER CO.
A
dividend of $7.75 per share on its' Brior
Preference stock to apply on account of divilends
in
arrears
on
this
date
has
been
dedared by the Bop.rd of Directors of this Com-

of New York.

dollar

LIONEL

June 19, 1942.

books

Transfer

this

the

of the earnings

Company, payable July 1, 1942 to the

holders of

stock

one

payable July

record

30, 1942, a
and three-quarters per cent

one

will

172

fiscal year ended April

of the

this

dividend

NO.

'v-'V.-'-A

disappdintmentj

come.

Treasurer

" Secretary

May 27,1942

because

L. H. Lindeman
May 26, 1942

Treadwell, Jr.

J-

•:

hedge"vare .insurance stocks? Judging

investors read of

shown

stock transfer books will remain open.

holders of
stock

July

stockholders of record

••

increasing llosses/ Governtnent war risk insure
ance, reduction in automobile insurance
volume, higher taxes and
by the books of the company at the
!<"(Piy1
close of business on June 5, 1942. The possibility of reduced^dividehds^,
:

d'rvb

Doth

declared.

been

day,

this

1942,

quarter ending June
Stock

Company has been de¬

OFFICE—-Edinburgh - •

•.

inquiries,^
have been
over-anticipating the results ;to{ be expected from insurance stocks
in wartime, and it is up to the dealer
to'temper the

value of the shares

on par

Texas

The

the Preferred Stock for the
30, 1942, and a
dividend of 10 if per share on the Common

(V/2 %)

(2% J

cent

754 per share

,Vwar

HEAD

Branched throughout Scotland J--.

'•*

■

frorr\i recent, trend of

lA quarterly dividend of

Week—Insurance Stocks

Just}how much of

A dividend of 50f per share or two per

-;v ..'»

' ;

Incorporated by. Royal Charter 1727/t

159th Consecutive Dividend paid
by The Texas Company and its

____

v'r

•.

•

Royal Bank of Scotland

■

Bank Note

Pre]end Dividend No. 145

Bank and Insurance Slacks

COMPANY

TEXAS

THE

•*•••:.

has been done at

expense

lower expense

far, the reduction in
ratios has offset the rise

the available supply of
scrap rub¬
ber differ widely and that no two

reports agreed." He further said that % if 'the lowest estimates are

ratios, thus preserving un¬ correct the situation is serious and
derwriting profit margins. If ul¬ that if the highest estimates are
timately; necessary, of course, in¬ right then the situation ? from a
creating surance rates could be adjusted to military
viewpoint is not so grave

high grade bonds,, thus
larger income of a stable type to
offset the loss in income
from reduced dividends

resulting
on

stock¬

reflect more unfavorable loss

ex¬

but

either

event

there is

still

perience,

as;.. Staje regulation is a rubber shortage.
based on an enlightened policy of
With respect to the :
gasoline
allowing adequate rates based on problem, the President
advised
actual .loss experience.
For the
| motorists in those areas where the
duration,. .therefore,underwriting supply is plentiful to reduce non1
operations should continue "in the essential
driving in half and to
black."
.v.'
drive slowly to conserve tires. He
-Being institutional investors and added that the rubber and
gaso-^
with the larger portion of their line situations
should not be con-;
liquidating values dependent upon fused. ' Mr., Roosevelt gave no
fluctuating. market values of se¬ inkling as to whether gasoline ra¬
curities, insurance stocks must in¬ tioning would be extended
■

On this matter of increased vol¬

•

(DATED MAY 15, 1942)

First

Mortgage %% Sinking Fund Bonds

ume in wartime, the insurance in¬
dustry is not under the necessity
experienced by other lines of con¬
version into purely wartime-pro¬

duction

In the event
any

bondholder has

received

of the Plan, please

notify

the

copy

undersigned

not

promptly.

Philadelphia

for

leaving for

the

duration, .thus

unsettled post-war

period the painful
conversion

duction.
demand
in

ALFRED O.
WARNER, JR., Treasurer
219 N. Broad
St.,

holdings.

PLAN OF EXTENSION

back

Wartime
for

process

re¬

normaK pro¬
increases Ythe

insurance

protection

great variety of ways—plant
and defense projects,

expansion
increased

from

evitably
trendsmar

should

.reflect
of

not

the

tides

general

and

security

Investors,
therefore,
reasonably expect in¬

production of "capital surance stocks to outstrip the gen¬
goods" such as
machinery and eral market,' although it is true
equipment to increase manufae- nevertheless that they have shown

the Eastern seaboard States
to the
of the
country but it is un¬
derstood that this matter will
be

rest

finally
weeks
made

pleted.

determinedwithin
when "studies
are

expected

now

...

two

being
com-'

.>4;.

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE' *

Number 4080

The Securities Salesman's Coiner

for, member

The Law Of Compensation I& Still Working!

;

expect

after

be¬

the

UNION BOND FUND "A"

business

resume

defer

UNION

the

date

the rest of the country is Just beginning to catch on.
First of all, we'd like to put it^'—-—:'
' •1 '
vthis way-^-a -salesman knows one which sparkle on his" chisel edge,
which are measured out by his
thing: if hi* knows little 'eise^you
can't get something for nothing. plumb and foot rule, which stand
.

election of

STOCK FUND "A"
FUND "B"

for

Prospectus covering all classes
oj stock on request

Governors by

Lord, Abbett & Co.
INCORPORATED

A further amendment

63 Wall Street, New York

of the present plan will reduce the

COMMON STOCK

UNION FUND SPECIAL

down the time lag in the present
plan; which has been found ob¬

jectionable.

COMMON

UNION

beginning
the
Groups from March 1 to July 1 in
each year. This will greatly cut

the

FUND "C"

UNION PREFERRED STOCK FUND

managed f; To propose an amendment to
maybe the few bond the constitution, effective in 1943,

salesmen still .left in this country can talk together for a short spell
dn this much discussed subject'. At least, we have known;sdmething
about bureaucratic regimentation for
quite]a few years now; whereas

BOND

BOND FUND "B"

UNION

J8P4

war

UNION

feus

is over, such inac¬
tive members to pay no dues,

In these days of managed money, managed businesses,

war

principal executives have
'gone into some form of war work

prices, 'managed goods and managed lives,

which

cause

but

houses

;foiiM the duration of the

2199

CHICAGO

Everything, in Other words, has its as manifest in the footing of the number of Group members- re¬
•••'
p'rice.
One: thing - above " all else shopifoill as in:the history^of 'k quired to support an
opposition
'tpat any successful salesman will StaM~do recommend to him; his ticket from "not less than 12 reg¬
tell you, is, You Can't Manage /trade, and though seldom named, ular
members of the Group or
A way the Old Law of
Compensa-^ exalt his busipess to !Ms imagina¬ 12% of such regular members,

JERSEY CITY

LOS ANGELES

tion.

It's

true

today

searching essay
despite all the

tion;

this

stands

above all the efforts to

effects.

whichever'number

chosen vocation

12%

securities men,

bers.

nullify its then, they will will .go.
will go on.-long after

But

and

Get too

won't

you

have

you

much

book

have

learning." Give
of-men

too

will

make

Put

the

World

the

and

the

tightly,

Reduction lit Dues

financial

Rye,

has been done
New York, and
away

Society of Industrial Realtors, will
be held in. Pittsburgh on June 25
and 26, at the William Penn Hotel.

Gov¬

conversions, and the whole prob^

Spring Meeting at

the

Y.,

America

Association

Board; of

other things, to

among

decided,

propose

lem of maximum

use

trial real

for

war

estate

city, taxes drop, real estate reduction, in members' dues, to tion will
values shrink, and eventually a
expand its efforts in promoting according
Mayor who has

been

the sale of government securities

tireless enemy of Wall Street for
years,

and

continue

begins to scratch his head amendments

the

This

be done to

4 in

tide that

disclosed

June

the

an¬

the

major

cities

the

; country there is still a substanL tial volume of industrial and

by John S. Fleek, President of the

j warehouse space, and as we find
;

held May 22-24.

was

af¬

;

were

]

of the Board

internal

operations

follows

letter:

Mr.

necessary

stop

manufac-

Fleek's

continue

and

further

the
i

buildings,

discuss what

war

labor,

plants where
transportation

public utilities

are

al-

ready available and in the in-

telligent readjustment of indusrial production in the post-war
period.

who still elect the old-fash¬

„

forces

will be

our

the

complete

eventual liberation.

;

To reduce dues for the ensuing

fiscal

beginning

year

Sept. 'T,

r Every evil has its good—so goes 1942, jsubject to convention vote
on an amendment to the
by-laws,
the law. Even today, as more and
more

firms

are

forced to

out

& business, those houses and their
salesmen

that

somehow

stick

follows:

Class A, from $200 to $175;,
Class B, from $150 to $125;
Class C, from $100 to $75.

out will find that their own com¬

possible in the

war

effort.

On the

program also appears the name of
Thomas D. Jolly, Chief Engineer
and director of purchases of the
Aluminum Corporation of Amer¬
ica, who will talk on industrial

iocations from the viewpoint of his
company.

sponsors

companies

their

dealer

sponsors. \

to promote the growth of
with which it is affiliated..

strictly

sales job.

And
—

groups

and to the investing public go far
beyond the ordinary processes of
"making a sale."

This is particularly true with
respect to the valuable investment

information provided at consider¬
able

to themselves by

expense

large number of
dition

ings

In ad¬

sponsors.

the publication of find¬

based

careful

research,

the sane, dispassionate discussion
of current investment problems is
a

contribution

made.

World
June

that

is frequently
point is the re¬

case

entitled, "Investments And
Conflict," contained in the
1, 1942, issue of the "New

Letter,"
published
fort¬
nightly by Hugh W. Long & Co.,
Inc.

The

Hancock,

text

that

review

year

reprinted herewith in full.
J

"In

recent

jlYest it
a

trip

the

mid¬

was our privilege to have

head

large

"This

has

man

both

toward

and

his

clients
and

lean

toward

which

of risk that accompanies
pursuit of unusual profit. Sev¬
his

old

clients

him what constituted

tive

investment

sort

had

today

investment

asked

conserva¬

and

play ; only at
a

one-way

direction

"At

"We tried to find the

answer by
analyzing the various divisions of
the

investment

sulting

field

conclusions

and

are

the

forth

set

for what they may be worth.
"To

its

inflation

jected
those

put the general conclusion

first, .it
with

re¬

seemed

inevitable

and

taxation—had

strong
of

forms

us that war,
companions—

speculation into
of

in¬

and unavoidable
investment

even
com¬

Cash
"This traditional

steps
into

come

later, date and

don't

So cash is

headed
want

the

go.

today's

negligible yields,
nothing
more

are

than another form of cash and

consequently
jections that

open

are

all the ob¬

apply to cash. For
large institutions which have huge
sums to invest and whose obliga¬
tions are payable in dollars, regardless

the

actual

those. dollars, the
available

For

have

the

have

meagre

some

ordinary

value

of;

yields

attraction.-

investor

they

none.

Long-Term; High-Grade Bonds
:

various steps leading to this con¬
clusion went something like this.

street

short-terms

monly thought of as suited for the
most conservative portfolios. The

prices,

Short-Term, High-Grade Bonds

they

should follow.

;

farm

and

apparently will

higher level, if at all.

what

program

worth

orderly control of the in¬

wages

eral

evitable further price rise.
To do
more would entail the freezing of

safety

the

will

ships

few

less a year or two years from
; Certainly the
Government
is acutely conscious of this pros¬
pect and is directing its efforts

rather than the assumption of the

degree

and

now.

spent his entire

conservatism

that

ago

years

shoes
wax

(still

Chicago in¬

business life in the securities field

two

sealing
doubt

vestment house.

and

ago

terms

and

long and frank discussion with

the

element

becomes
less, thereby
To make no further calls on
evening up the dwindling supply the subscriptions to the
Brannan Is
Publict In¬
of existing business.
This is not formation Program and to release
Now Hancock, Blackstock
the time to quit. This is the time all
subscribers from further lia¬
to stick.
bility. After settling current com¬ i ATLANTA, GA.— Jerry G.
i Probably no better way to end mitments, the balance of the funds (Blackstock Jia's acquired an inter¬
est in the firm of
Hancock, Branthis little piece could be found on hand (about $30,000 at -this
than to quote the following para¬ time) is; if required and at the nan & Co., First National Bank
discretion of the President, to be ]Building,"and effective June 1 the
graph
from
that
great
essay:

petition

;

sponsor

At first glance this would appear to be
yet the services rendered by manj <S>

salary by over 30%. At the same
ioned, hard, American way, of time the Chairman of the Public 4 Fred A. Kimmich, S. I. R., head
private competition and private Information Committee voluntar¬ of the Industrial Building Utiliza¬
endeavor as against the scholarly ily reduced his
salary by 35%. On tion Section of the Plant Site
schemes of the bureaucrats who an annual basis, the
aggregate of Board, will talk on war plant facil¬
He. will be an important
now
control our economic life. these reductions amounts to more ities.
That lesson is plain as day. That than $22,000. y , :;s<
speaker at this
conference, in
'•
,.A
lesson says to us, stick to your
To accept your President's pro¬ which officials of principal gov¬
bond selling.
Stick to your jobs. posal that his salary, as Chairman ernmental agencies concerned with
The longer these planners plan, of the Public Information Com¬ war industry location are expected
to
the sicker our people will finally
participate.
The
Industrial
mittee, be discontinued entirely as
become over the whole snarled- of May 31. I intend,
however, to Building Utilization Section was
up mess.
The longer they plan give the Association work all the created by the government for the
the greater will be the pent-up time it
requires, even if this means specific purpose of utilizing exist¬
forces against them.
The greater full time, as it has up to June 1. ing industrial buildings as far as
these

company

York

We will

be done to support the work
of the Plant Site Board both in
can

and other
•

best

company

taring of non-essential items,
additional industrial space will
be made available for war pro¬

location

the

investment

view

program
tiated in

foolish

primary job of the

the

duction.

The decisions

fecting
listed

of' rigid economy*. ini¬
January. Already, as of
bureaucrats that now infest and
April 1, by voluntary action of
infect every nook and cranny of
the
principal members
of
our
b.ur national' life are long disposed
staff, a reduction of over 20% in
of and forgotten.
the salary overhead was effected
v
And what is the lesson for those and one staff member reduced his
all

program

ing

comes

when

the

Association. The Governors' meet¬

in must go
out—this is the law of life and it

.Will stand

discussion,

nounced by Walter S. Schmidt,

letter sent to IBA members

bring business back to
the city he has helped to ruin.
Emerson was right, for every good
there is a bad, for day there is
night, for work there is rest, for
every
hardship there is a new
strength, for idleness there is
weakness, for every gain a loss—

under

indus¬

produc¬

for

press

Acts.

was

our

Cincinnati, President of the So¬
Securities ciety. Mr. Schmidt states:

ahd worry nights as to what must

every

The

indus¬

of the Investment Bankers

ernors

from

indications that the investment company field
has arrived at respectable
maturity is the high level of professional
service rendered by the
majority of investment

real estate, sponsored by the

the

Socialist

Constructive Contributions
One

Wartime plant location, financing
for industrial plant purchases and

At its recent

goes

trial

IBA Governors Vote

jackasses out of them.

City of
business

finally

national conference

confusion.

learning and
enough
"life
power

screws

mem¬

| A
Conference At Pittsburgh

any man or group

much

larger"

Industrial Real Estate

It cannot be managed out
of existence.
Get too many man¬
agers

of the regular Group

in crea¬ then all the planners and man¬
supreme agers in creation can come,; and

managers

law

....

If this is the way we regard our

the subject and

]

tion."—Emerson.

when

the great Emerson wrote his soul-

"Credit

demands

generated

'•

a major war have
always spelled,
rising interest rates in the; past •

and there seems no valid reason $
refuge for the for expecting World War II to be /
an exception.
Already many high- >

undecided is necessarily a specu¬

lation on the future value of the grades
shpw recessions from their,
available
for
the
Association's firm name was changed to Hanr*
^Human/labor, through all its
dollar. We all know that the dol¬ highs. An interest rate of 4% for
cock, Blackstock & Co., it was an¬
forms, from the sharpening of a participation in the war effort,
lar is worth less today than
a
(Continued on page 2207)
stake to the construction of a city j
To propose an amendment to nounced by Roy W. Hancock,
dr an epic, is one immense illus¬ the, by-laws at the October cori- President/of: the -company.P
■■■'be
tration -of-the perfect compensa¬ vention to eliminate the.minimum PlVlrP
tion of the universe: The absolute Capital requirement of ,$25,000 "on Vice-President of Hancock, Blackbalance of s Give and, Take, the the part of applicants for mem¬ stock & Co.,-has been active in
Atlanta investment circles for the
5 :
t s
doctrine that everything has its bership.
A Mutual Investment Fund
To propose an amendment to last ten
price—and. if that^ price, is not
years, having been with
-

COMMONWEALTH INVESTMENT COMPANY

•

paid, not that thing but something
else is-obtained, and that it is impossible to get anything without
its price-—-is not less sublime in
the columns of a ledger than in
the budgets of States, in the laws
of light and darkness, in all the
actions and reactions of nature. ; I
cannot doubt that the high laws:
which each man sees implicated
in those processes with which he
is
conversant, the stern ethics

the creation Livingston & Co.,- Dobbs & Co.,
Committee,* con¬ and since .1941 With Hancock,
sisting of the President, the five Brannan & Co.

the

constitution

for

Executive

Vice Presidents, and the last Past
President, its general function be¬
ing to make decisions on any

Now McLean &

Bishop

PROSPECTUS

matters i requiring

arising, between

Coincident with the retirement
prompt action
Board meetings- from partnership of William E.

and conventions,

W'arren;

on May 15, the firm name
McLean, Bishop & Warren, 42
the by-laws to set up a new, spe- Broadway, New York City, was
cial class of inactive membership changed to McLean & Bishop. * /

propose

amendment

REQUEST

General Distributors

North American Securities Company
2500

Russ

Building

San

Francisco

THE COMMERCIAL & FINANCIAL CHRONICLE

2200

tions

FLORIDA

for

Thursday, June 11, 1942

inability

take-over.

■

shown the short interest

finance

the

day for

Major Sales Scheduled
We

FLORIDA
Court ruled clined,
urban
traffic
low rent housing creased, v ;/•// L* V
;-V

last week that

exernjpted.

taxing status of housing authori¬

"••/•••

Our

Canadian Provinces and

The magnitude of the financial
problems faced by the Dominion
Government since the outbreak of
has

tended to distract

nicipalities,
Bank of

provinces
comments

comprehensive

atten¬

them

bonds.

answer

will

glad

BU>C\^_^/CHICAGO IUINOIS

June Let¬

Cohen

the last
also ap¬

are

controlling

$60,000,000

some

ter.

The

last

three

Board

State

Tax

Ap¬

expenditures.

General

Nation's

top

sit in

the

day-long

executives will

war

round table discussion at the Na¬

tional

Conference

Governor's

found

taxes

and

enter

fields

new

taxation in order to

need¬

secure

funds, the provinces and mu¬
nicipalities have enjoyed increas¬
Asheville, N. C., on June 23.
Joining with Governors of at ing buoyant revenues from their
The latest
least 35 States, the following rep¬ existing tax sources.
resentatives of
discuss State

agencies will

war

participation in the

victory effort:
Donald
•f

Nelson, Chairman
Production

Board;

Leon Henderson, Administrator

< of the Office of Price Adminis¬

tration; Paul V. McNutt, Chair¬
man

the

War

Commission;

Jesse

Manpower
Jones,

Sec¬

statistics

indicate

that

practically all provincial and mu¬
nicipal governments have shared
in

War

the

available

this' gain.
But the very need
the Federal Government for

Patterson, Under Secretary

•f War.

situation.

Mayor
last

session

attention

the

local,

State

and

37th

officials at the

about

500

Federal finance
annual

con¬

ference of the Municipal Finance
Officers Association of the United

States

and

Canada.

The meeting

is scheduled to be held in Buffalo
Such problems as

June 22-25.

June

487,151
537,613

Apr.

510,969'

May

496,892

June

478,859

This

issue will refund outstanding bonds.
Larger issue of similar bonds was awarded
June

and

Blyth

associates.

headed

Co.,

Inc.

Runner-up

our

4, page 2112.)

was

New

York,

whose

LaGuardia, in an ad¬
Thursday to the first

of his

new

Joint

Finance

bid

Trust

topped

that

Marcli 'this city awarded

syndicate headed by John Nuveen & Co

issue to

the bidding was
Blair & Co., Inc.,

best in

submitted

offer

(These
sale

bonds were

originally scheduled for

June

poned

15, but the offering was post¬
technical reasons.)

for

$490,000 Tennessee
Although
amount

slightly
this

under

offering

awarded

Inc.

bids

Last

bonds

There

Co.,

submitted

were

for

required
because

December

the

Halsey, Stuart &
number

the

other

wartime budget and

Rural

are

(State of)

Credit

Deficiency
January
the

Last

similar certificates by a syndicate

by the Wells-Dickey Co. of Minne¬
apolis. Second best bid submitted by Harriman Ripley & Co., Inc. of New York, and
group.

East's Rural

gencies;

New York Stock Exchange

Highway

Gasoline rationing has cut rural

highway travel in Eastern States
by 55 to 65%, compared with a
year ago, the Public Roads Ad¬
ministration estimated last Friday
on

the., basis

reports

from

Maine, Connecticut, Rhode Island,
New
York, Pennsylvania, : New
Jersey, North Carolina and South
Carolina.

the

weekly firm changes:

Granberry

Interest of

the

tion still

was

about 95%

Bernard

Henderson, Harrison
& Co., New York City, ceased as
of

June

Interest of

the

As of the May

late

William

great hen,

General

Counsel.

Austin

other

the month.

The

which

hand

there

dribbling

evi

are

liquidation

from institutional sources,

from

of
on

partic¬

insurance

predicated

small

railroad
war

will

culty

once

and

that the

financial

the end of the

envisioned.

"It

and

companies, all
the viewpoint that

industry is aided by

effort

roads

banks

our

rail-,
diffi-

war

can;

viewpoint,

however,

that the roads have been and

are

making substantial improvements
in
their financial positions andv
this viewpoint bears consid¬

that

eration

that

before

the

stand

ness."

taking

railroads

the

stand

cannot

with-,

period of declining busi¬

a
'

Copies of a recent circular dis-;
cussing this question may be had ;
upon request from Hirsch, Lilien¬
thal & Co.
''
,
-

Seeks $39 Billions-

For US Army In 1943
President Roosevelt asked Con-

gress on June 8 for

for

$39,417,827,337 '
War; Department's
1943*

the

fiscal year

projected
over

needs, thus raising the
war
expenditures
to-

$200,000,000,000.

This request

replaces the tenta-

tive budget estimate sent to Congress

•

in January calling for only.

$6,388,091,747. The President indi-

cated at that time that the

figure i
probably be increased. Inv

would

his letter

transmitting the revised •
amount, the President explained:.Under
v

tions

the

which

change
has

condi-

since

come

about, such estimates fall short

reflecting the Estimated needs T
the
military establishment,
for 1943, and their complete re- /
oi

vision

becomes

necessary.

The largest

single request was r
$11,043,000,000 for the Army AirCorps and the second largest item
was
$9,943,920,000 for^ ordnance;
and equipment and
$4,127,000,000/
for Army pay.
*;
>
Authority to transfer up to $12,-"
700,000,000 worth of supplies pur->
.

chased under the appropriation tolend-lease nations was requested

by the President.
of

issues

short interest

was

re¬

Mr.

Roosevelt's

budget request

also recommended that the Secre->
taries of War and Navy be em—.

of May 29, exclusive of
odd-lot dealers', short position, powered to disallow salaries and)
was 401 compared with 438 on
bonuses paid to officers and em-1
ployees of war contracting firmsApril 30.
r
In the following tabulation is "in excess of a reasonable amount."
ported

"award

number
a

less reflects the '

and lack
enthusiasm while

dences

29 settlement date,

Municipal dealers displayed no the total short interest in all oddfervor last week over lot dealers' accounts was 65,434
reserves.
the offering by Whatcom County,
shares,
compared
with
66,323
,The multi-partisan Board is Wash., Public Util. Dist. No. 1, of shares, on April 30.;lo;-;:'i':'
composed of 35 members, includ¬ $5,875,000 electric revenue bonds,
The Exchange's announcement
ing city and State officials, three when no bids were submitted. further said: *'4
&
':
former Governors, bankers, busi¬ The proceeds from the sale were
Of the 1,242 individual stock
ness
men, real estate owners, rep¬ to be used to finance acquisition
V issues listed
on
the Exchange
resentatives of civic organizations of the electrical properties now
on
May 29, there were 30 isand finance and tax
operated
by the Puget
Sound
experts.
sues
in which ^a short interest
Power & Light Co. in the district,
: of
more than 5,000 shares -ex¬
N. Y. Port Authority Names
together with; -certain transmis¬
isted, or in which a change in
Tobin Executive Head
;
sion lines extending into Skagit
the short position of more than
The Commissioners of the Port County, to provide working capi¬
2,000 shares occurred during

larger than facts justi¬
as ,a year ago.
A spokesman ex¬ Tobin, outstanding opponent of fied," delay due to legal action
plained that while rural travel the Administration's
movement which has added more than $500,over
the entire country had de¬ toward the elimination of tax ex- 000 to
vinterest,- and war ?condi- v

the

New York
Stock Exchange
late

raised

lethargy

speculative

Co.,

ordinance

other

individual

the

The New York Stock Exchange
has
announced /
the / following

tal and for other purposes.
New
hand, April mo¬ of
York
Authority
an¬
tor fuel tax receipts in 29 States nounced late last week the retire¬
No
reoffering date has been
scattered throughout the country ment of John E.
Ramsey, General scheduled as yet. Whatcom Dis¬
indicated that gasoline consump¬ Manager, and Julius
Henry Co¬ trict's Commissioners blamed

these, and protection of pension apparent

Travel Drops v
,

has

bonds

the

Weekly Firm Changes

•

Harrison

financing

riu-

inquiries as to the causes,
according to Hirsch, Lilienthal &
Co., 25 Broad Street, New York
City, members of the New York

rail

merous

ularly

May; 29

cal Finance Law."

Of Medium Grade Rails

certain

county 10 days in which

emer¬

Warns Against Hasty Sale

weakness

Fund

appointed the Joint Board on
May 1 to make a comprehensive
study of "all matters pertaining

war

State

Burg in Smith, Moore & Co., St.
designed to cure
Louis, Mo., ceased as of April 23.
Chicago's transportation headache
R. Emmet Byrne retired from
and told the members they had was ratified by the electorate in a
partnership in Edward D. Jones
"a long, hard,
difficult, thankless referendum last week. Expressing
& Co., St. Louis, Mo., on May 29.
his pleasure at this
job ahead".
action, Mayor
Harman & Co., New York City,
E. J. Kelly said he expects;, his
With the city's financial and
dissolved as of June 4.
city will now have the best local
tax problem^ growing steadily
.Frances M. Lynch, partner in
transportation
more serious, Mayor LaGuardia
system ". in H the
Wilbur F. Smith & Co., New York
world.

by
methods
of

May

Exchange, and other lead¬
ing exchanges, who state that "it
is our opinion that the present

City, died on May 19.
The measure provides for im¬
financial pol¬
mediate unification of the surface
icies, pension and retirement pro¬
to the financial condition of the
and elevated systems and event¬ NYSE Short Interest
grams, salary and wage policies,
ual absorption of the
City of New York."
Chicago mo¬
u
accounting and insurance, and use
;v^Higher On
The scope of the inquiry as out¬ tor bus properties—a new com¬
of tax delinquent lands will be
The New York Stock Exchange
lined by the Mayor's index in¬ pany called the Chicago Transit
up for discussion.
announced
on
June
6 that the
Co. would be created and
cluded
charged
existing revenues;
new
with spending
sources
of revenues;
Municipal Forum to Meet
$102,000,000 during short interest existing as of the
mandatory
the first eight years of
operation close, of .business on the May 29
Abbott Low Moffat, N§w York legislation; law of real estate as¬
for improvements in service. This settlement date, as compiled from
distribution
by
the
State Assemblyman, will be the sessments;
company
also
would
rent
the information obtained by the Stock
guest speaker at the next lunch¬ State to the city of State-collected
city's new system of downtown Exchange from its members and
eon
meeting of the Municipal taxes and contributions by the
member firms, was "534,396 shares,
Forum of New York tomorrow at State to public works, education subways not yet in operation, but
compared with 530,636 shares on
nearing completion.
Block Hall. Mr. Moffat will dis¬ and courts.
April 30, both totals excluding
cuss. "Improving
Local Govern¬
Also further economies in ad¬
Wash. Utility District
short positions carried in the oddment >Financing
in New York ministering city government ex¬
lot accounts of all odd-lot dealers..
Receives No Bids
State: The Recently Enacted Lo¬ penditures caused

Stock

issue.

June 24

Transit Unification
An

31_

Apr.

460,577
489,223 ;
513,546
530,636
534,396 ::

The recent weakness in medium

included

interest.

general

State

awarded

Chicago Voters Approve

Mar.

grade

(State of)

rehearing have been given City, retired as a
days in which to file briefs member firm as of May 21.
the

31
27

June 22

headed

answer....

and associates.

certificates.

certain

_____

1942—

Feb.

Dec.

Jan.

Chicago.

28_

487,169
470,002
486,912
444,745
453,244
349,154

31_

Nov.

Inc., of

$7,900,000 Seattle, Wash.

July 31
Aug. 29
Sept. 30—
Oct.

New York, and associates.

These

The Arizona Supreme Court has
granted the petition for a rehear¬
ing of the case decided early last
month, in which the Court ruled
that

by Phelps, Fenn & Co. of

$2,025,000 Minnesota

Rehearing Granted

New

York.

New

the
issue

Arizona Bond Case

and

Municipal fiscal problems
Study Board, said that New York
brought about by the war will re¬ was in dire need of fiscal reform
ceive

report

high Court's decision in
of

N. Y. C. Financial

dress

to Meet

459,129

for the

Study Board Meets

Municipal Finance Officers

carried

outstanding bonds of
of
Maricopa Co., Ariz., are subject
to call at anytime even though the
new revenues and the indirect ef¬
fect of the spread of the war on bonds as issued made no provi¬
provincial taxes, notably in the sion for redemption prior to final
automobile and gasoline tax fields, maturity date.
might be expected to alter this
Attorneys for the petitioners

retary of Commerce; and Rob¬
ert

(We

31_

Mar.

submitted by Halsey, Stuart & Co.,

increase

Dec.

498,427

The time has come,

necessary

31_

•

Oct.

Nov.

446,957
479,243
474,033
517,713
530,442
515,548

31
Aug. 30
Sept. 30—

years

Supreme Court Decision
peals, which carried the case to however, the bank continues, for
the Supreme Court, contended re¬ governments as well as individual Seen Aiding N. J.
strictions of the village's use to citizens, to examine closely their Local Finances
certain families, depending upon expenditures. It is suggested that
The
decision
in
the
Asbury
their
income,
removed
all its provincial and local governments
should reduce debts and postpone Park, N. J., case, handed down
public character.
all possible public works, but plan by the U. S. Supreme Court on
Counsel for the village argued
June 1, cannot fail to have a most
for the start of new construction
the housing was built for public
beneficial effect on the credit and
at the opportune time following
finances of New Jersey and its
use, and the fact it was rented
the cessation of hostilities.
only
to
persons
of prescribed
Like many individual citizens municipalities, according to State
earnings did not take it out of the of the
emption
for
municipals,
was
Dominion, the provinces
public class.
named, as successor to Mr. Ramsey,
and municipalities have received
increased incomes as a result of assuming the post of Executive
Governors to Hear
the industrial war effort.
While Director, and Leander I. Shelley
Treasurer Robert C. Hendrickson.
Nation's War Chiefs Speak
the
Dominion
Government
has
Five

28__r

July

Feb.

Co.

The

June

1941—

■June 16
have Counsel. Both Mr. Tobin and Mr.
in property .throughout the State. seen profound changes in their Shelley have been associated with $1,792,000 Albany, N. Y.
It, probably will be appealed to fiscal positions, with
expanding the Port Authority for a number Last June this city awarded bonds
syndicate headed by the Bankers
the United States Supreme Court. income
and
somewhat
reduced of years.
• * y

ties

last

Jan.

account

Mr.

bidder

successful

sold

the

1940—

offerings

for

business

for

$2,800,000 Yonkers Mun. Housing
Auth., N. Y.

York,

succeeds

the

pended.

and mu¬
the Royal

Canada in its

the

runner-up

existing

last

June 11
-

R.E.Crummer I Company
1ST NAT BANK

the

previous issue

obligation.

names

and

regarding

inquiry

any

tion from the financial situation
Canadian

gives

municipal

Fiscal Advances

war

lonf experience in handling Flori¬
issues

herewith

municipal

the

two years:

($500,000 or over — short term
issues
excluded), which are to
come up in the near future.
The

background of familiarity with these

Municipalities Show

majority opinion fixed the

The

;

by the Columbus
Metropolitan Housing Authority
was
not
public
property
and
therefore subject to real estate
taxation.. The vote on this farreaching decision was 5 to 2, the
dissenting opinion holding that
the property, known as Poindexter Village, was public and should

built

project

MUNICIPAL BONDS

in¬

had

The Ohio Supreme

list

important

each month

Volume 155

Number 4080

THE COMMERCIAL & FINANCIAL
CHRONICLE

Following
tween

Confers With
With

Morgenthau

view to expediting action on the

Action

Administration's

tax pro¬

"administrative^/—

—

changes" in the Internal Revenue

he ; said

Code.

$279,700,000.

On June 4 it

that

the

Committee

tively acted

indicated

was

had

the

Stock Market Comments

Commit¬

tinue between the Committee and
the Secretary was issued as fol¬

Further bits of favorable

momentum, and the United States declaration of

would 3 produce
But the Treasury

expect the advance to

conference.

lion

con¬

from

experts. According to advices to
the "Wall Street Journal" from its

Members said that the Com¬
mittee planned to take up in

Government. It was also agreed
that the remarks made by Sec¬

Washington correspondent, affili¬

order

retary Morgenthau in

media

ated

they

willing to

are

June 3 announced - recommen¬
dations for changes in the tax laws

utes, Washington advices
date

sales

the

New

date

actions

individuals

Stam.
tions

were

chief

was

would

fect the
The

revenue

statement

purpose of
tax mutual
•

said

not

the

that

the

ac¬

materially af¬
picture.
said

that

how

investment

much

will
have

will have to de¬
will let

through
we

will

whether

that

all

taxes,

sales tax to

mated to produce about

$5,800,-

On June 9 the Committee voted
to retain the Federal gasoline tax
at the present rate of IV2 cents

compa-

nies, adopted tentatively, was to per gallon. The Treasury had
pro¬
extend the special tax treatment
posed that the rate be doubled
given to such companies to

now

bring

another

$24,000,000
investment companies from this
source, it was noted in
registered under the Investment Washington advices to the "Wall
Company Act of 1940.
These Street Journal," which added:
are regulated by the Securities
It agreed to increase the rate
and Exchange Commission.
on lubricating oil from 4% cents
Also adopted was an amend¬
per gallon to 6 cents and esti¬
mated this would raise an ad¬
ment denying a deduction for
ditional $7,500,000/ The Treas¬
interest paid on ah indebtedness
ury had asked that the rate be
incurred to buy or carry a fully
other

•

I paid-up
i

life

dowment

insurance

contract.Mr.

boosted to 10 cents per gallon to
raise an additional $50,000,000.

en-

Stam

said this treatment would be in

just

about

half

conformity with the present
provision of the Internal Reve¬

Treasury recommendations,

nue
Code which prohibits the
deduction of interest paid on a
debt incurred to purchase taxexempt securities.
- <;

;
.

wines, the Committee went

proving an estimated increase of
$12,800,000, compared with the
$25,000,000 increase advocated
by the Department.

the rate

lic utility companies may be ex¬

empted from taxes on gain result¬
ing from the sale or exchange of from
under

the

cent

provision

of the death sentence of the Hold-

than

made

the

ap¬

The Committee acted to advance

Advices to the effect that pub¬

assets

way

still wines

14%

tax

had

alcoholic

been

gallon;
asked

wines of

ported

that

the

Committee

re¬

content

approved on June 3
administrative changes in tax reg¬
which

those taxes.

would

eliminate

of gains that may be realized on

Act,
provision

sales

assets.

pany

but -makes
regards

40 cents

two

for

bonds

21%

Committee

gallon,

cents to

$1,

such

Administration's
in

ex-

United

tax

position

these

stocks

would

•;

result of the conference

there is every reason to believe
that the same spirit of harmo¬
nious cooperation between Sec¬

position of stocks. The market to¬
day is virtually on a cash basis;
speculation is at an irreducible
minimum and there is
tive
pyramid to

specula¬

topple; prime
after allowing for

retary
Morgenthau
and
the stocks, even
dividend
reductions
forced
Committee on Ways and Means
by
war-time
will continue in the future as in higher
taxes,
offer
nearly double the yield on prime
bonds; cash is practically non-pro¬
United
Press
advices
from
ductive,
except
in
very
small
Washington on that date (June 4)
amounts, and its future purchasing
said:
the past.

power

Before

going to the Capitol
Morgenthau revealed at a press
coference

that

the

Treasury

plans to delay deduction of in¬
taxes from pay-checks un¬

come

January 1, 1943,

the tax¬

will be relieved of "dou¬

payers

ble taxation" this year.

Under

the

withholding

pro¬

destined

seems

deteri¬

check would be deducted at the

and sent to the Govern¬

source

ment for

income

From
June 4,

liquidation of his

^ax bill.

the

5 /

(

Washington

bureau,

the New York "Journal of

Commerce"

ing:

reported the

follow¬

•

Now

consider

the

position

prime
corporate
bonds.
Prices
have worked to levels which are
tor

moderate

means.

and

Means

Committee

country to
The
for

write

the

tax

bill.

Treasury cannot account
responsibility and we

but it is

important and

overlooked.

view

exchanges with
anticipating results of

spective
and

earnings

the debtor at the
creditor.

terms

expense

Time

the

when

was

bond

meant

thing, but this is not the
day.

When

cannot

individual

case

to¬
he

he just doesn't pay
and that is all there is to it. Most
paj'

Alton bonds
curred

been

years

which default

yet

ago,

there

oc¬

has

receiver, no trustee,
plan, in fact, no nothing.
Any

stocks.—G.

lard, J. R. Williston

pro¬

Bil-

& Co.

Hull Warns Finns On
Added Aid To Axis
Secretary of State Cordell Hull
June

that

watching

the

United

the

situation

whether

Finnish

Reichsfuehrer

closely

see

Hitler's

recent visit to Finland, results in
that country's greater

cooperation
against the United States.1

the

some¬

decides

debtor

of the

dividends

holdings critically at this time in
the light of indicated tax
positions

the position of

1942

and

urge that clients examine

ease

: ■/

States

j/:/;; //

the Revenue Act of

stated

cent years

the

cannot be

We believe that now is the time
effect certain

for

the

into

with

taken

attractiveness of equities

wealthy investor, certainly the
handwriting is already on the wall

the
conference glaring example of such a situa¬
tion is the case of the
Chicago &
Doughton said, "the

Chairman

Ways

relative

the

respect

considering

virtually prohibitive to the inves¬

Following

has the responsibility before the

the only factor to
consideration in

orate.

privilege of
gram, which is still before the tax exemption.
Furthermore, con¬
House Ways and Means Com¬ sider all
the legislation which has
mit, 10% of a worker's pay¬ already been enacted
during re¬

Secretary Hull, in

statement

given

out by the State Depart¬
ment, termed Hitler's visit a "des¬

perate attempt" to induce Finland
make further contributions to

Axis

military campaigns.

The United States continues to
carry on full diplomatic relations
with

try

Finland, although that
is

Great
on

with

war

Britain

coun¬

and

declared

has

Russia

war

Finland.

flight from stocks into
The formal statement reads as
fantastic, whereas the follows:
country
for how he runs his bureau."
alternative, that is, a mass flight
The Secretary of
from bonds (and cash) into
State, in reA reference to the Committee's
equi¬ 1
; ply to inquiries from the press
deliberations on the tax bill ap¬ ties, seems to us at least something
more than a mere
concerning Hitler's visit to Finpossibility—not
peared in our June 4 issue, page
land, said:
immediately, but rather over a
2119.
our

cannot

account

bonds

the

mass

seems

•

period of time
on

Mortgage Recordings Up
The volume of non-farm mort¬
gage recordings of $20,000 and less
moved upward during April in re¬
sponse

totaled

seasonal

factors

$360,000,000, Federal

some

the

that

masses

"It is evident that the visit is

it begins to dawn

common

post-war period

stocks

may

Some

measure

Home Loan Bank Administration

common

economists reported on June 6.

make

the

tax

exemp¬

tion

those

areas

must

would

goal

were

noted

accounts

Press

from

directly in
seen

cover

desperate attempts of
to

induce

further

Finland

contributions

out

man

balking at the Ger¬

pressure.

"We

However, we
that under the

are

watching the situa-.

tion most closely to see whether
this visit of Hitler results in

not

production, may be and
reference to financing 40%

spokesman in Helsinki
be interpreted to mean that

Finland is

tentative.

point

Finnish
may

"the

ages, which have now resulted in
virtual cessation of new construc¬

eyes

to
Axis military campaigns. A re¬
ported statement yesterday of a

tion base.

stock

fqrther in the

the

Hitler

the attractiveness of

the'part of
compromise

the anti-Axis world and

for

Yardsticks

Important yardstick with which

ruse on

Germans

Finland

had attained before.

Applying

deliberate

the

enjoy
investment status such as
they

never

and

re¬

the alternative of the sales tax or
a bilk
$2,000,000,000 short of the

outright

Direct

puting taxes is changed, the rela¬
tive

and

engaged rates proposed by the House
Ways
Means
Committee, namely,
by
and 94%, U. S. Steel (46)
l changes have not always been Washington on June 6 which said
Mr. Morgenthau replied to the activity of recent years.
can
theoretically earn nearly $6
feasible
and
sales
of
assets
"The rise of 7% in the volume per share before
Ways and Means Committeemen
\" are. often necessary.
being liable for
The acof recordings from March to
April excess profits taxes, whereas the
/-tion. of the-Ways and Means that he would submit the Treas¬
of this year amounted to less than comparable
figure for Bethlehem
;;J• Committee would put sales} of ury's choice in a statement possi¬
one half of the relative increase
(52) would be well under $3 per
/ assets on the; same ; basis as bly next week.
!
Another
reported for all lenders in com¬ share, yet Bethlehem still com¬
development of the
'"direct exchanges of assets or seweek was the exception taken by parable periods of 1941 and 1940. mands a substantially higher
price
curitijes. : ..;' /. , \
:
members of the Committee to re¬ Also, total recordings for April than U. S. Steel. \Also, take the
./ Included in the. Committee's ac¬
marks made in a radio address by were nearly 10% less than in the case of Crucible (25) with an in¬
tion this week was its tentative
Secretary Morgenthau on June 3 same month of last year, although dicated tax exemption base of
approval .of an increase; from $4 in
which, among other things, he 6% above those of April, 1940."
only around 60c per share, com¬
to $6 a gallon in the tax on whis¬
said:
:
3;.'///
Savings and loan associations pared with Jones & McLaughlin's
key and other distilled spirits. At
The Ways and Means Com.the
again led the home financing field (18%) tax base of $2.75 per share,
same
time
the
Committee
mittee is now hard at work
yet the latter sells for substan¬
in number and amount of mort¬
agreed to raise the tax on beer
writing a new tax bill. It is not
tially less than the former. Like¬
from $6 to $7 a barrel. In Asso¬
:
for me to discuss the details of gages recorded during the month, wise, take the case of General
ciated Press advices from Wash¬
;
what they are about to recom¬ accounting for 30% of the total
Electric (26) with an indicated tax
ington June 3 it was stated:
mend., I
of

of the bill, but1 the
point
is that unless the method of com¬

principal

investment,

namely,

revised

ih'fthe final

terms

the average investor is

concerned,

foregoing estimates would,

course, have to be
reflect any change

They pointed out, however, that
No one can be sure at this time
difficulties
in
sustaining just what final terms will be writ¬
normal lending operations in the
ten into the Revenue Act of 1942
mittee havo given Mr. Morgenthau face of building material short¬ and therefore all tax calculations

exchange of assets made in com¬
pliance with thO Holding Comv

the

quested by the Treasury'.
:
Reports to the effect that rank¬
ing members of the House Com¬

The present Internal Revenue
/ Code provides for
postponement
•

from

tax

These advices added:

upon

by the

14 to

against 50 cents requested by the
Treasury. In the case of wines of
21 to 24% alcoholic
content, the
Committee moved to increase the

had

tentatively
ulations

cents to

re¬

15-

ing Company Act were contained
in a Washington account June 4 proposed to increase the rate from
to the New York "Sun" which

way

only

are

available

The
of

....

8 to 10 cents

Treasury;

having not

alcoholic content

There

greater degree of. coopera-•"

any

war

•

tion

with

Hitler

United Nations."

against

the

■

_—fH-7—

J. M. Fisher MadeHreas.
•

John

pointed

Fisher

Treasurer

has1 been
and

ap¬

William

•

Ward

Controller

Standard

Bands, Inc., according to an an¬
nouncement made
by the/ VicePresident of the company/ Mr.
Fisher has been manager of the
corporate buying and underwrit¬
ing department of Lazard Freres,
Wall Street investment

house, for

the

and

should

The

liquor, tax

-/exactly
r.,
i

Treasury,
mended

increase

what

Secretary
Morgenthau

last

March

and

only

was

the

bill

recom-

which

this

cannot

too

comment:

that

said

late. :/

the

too

was

make

hope
new

little

tax

and

■.

White

not be altered in
equities, eliminating from consid¬
any im¬
The: question of
Ways and Means or its proced¬ eration, of course, unproductive portant respect.
tax
ure in writing the
exemption, of course, is not
pending tax cash. Consider for a moment the

til

000,000.

the

amendment

approved.

mqke up the difference."
The / Treasury's
revised
tax
goal is $8,700,000,000. The Com¬
mittee has approved levies esti¬

Colin F.

expert,

get

excise

cide
at

explained in a
statement prepared by the Com¬
mittee's

recent

intended to
the Committee

bill.

whether

flect

stage

•

the

were

reflect;and insofar

radio address did not

showdown

would

raised; then

changes sought in the
by the Treasury or by

tax laws

tax

with
see

Committee's

for

question of

"When

"Times"

said in part:
The

would

predicted, the

set

ation this way:

on that

York

proposals,

One of them explained the situ¬

;

stat¬

some

the

"hardships" and to /ad¬

practices under

tax

estimated

was

Then, they
would

on,

just"

Administra¬

$1,340,000,000, and might
finish that work by the week-

Reporting that the. Committee

to remove

the

raise

cial surtax for the
privilege, ac¬
cording
to
a
tentative
plan
adopted June 4 by the Committee.
;

excise

which

2% spe¬

pay a

all

tion's

corporations could file con¬
income tax returns if

solidated

avail¬

immediately of the returns
a $7 tax.

consider

able.

new rev¬

was

the

(13). And also
the $1.95 tax
exemption
base
of
General
Refractories
(15 V2 ), compared with'Harbinson
Walker's (13%) base of'bnly 92c.

tinue, subject to recurring set¬
The opinion was unanimous
backs, and to broaden consider¬
that the Committee and the Sec¬
ably during coming months.
retary had labored together for
Position of Equities
many years in a most harmo¬
nious manner in connection with
Position of equities on the basis
the difficult fiscal affairs of the of cold logic is virtually unassail¬

able

estimate

stale¬

Libya

■

then

war

three

produce $117,100,000 in
enue.

brought broadening demand

Devastating RAF bombing on the Continent, the continued
on the Russian
front, the failure of the Nazi offensive in

which had been submitted by the
Committee's and the Treasury's

news

mate

to gain

more important of these adminis¬
trative and technical tax changes

war

for equities during the past week.

Axis puppet states
(possibly in exchange for the granting of
Secretary of the
Treasury Russian bases to the United
States^
"
Morgenthau met with the senior for
bombing of Japan), were all indicated for Yellow Truck
members of the Committee on
(12),
to the good.
compared with the $2 tax exempWays and Means in an informal
We

had asked that the beer tax be
raised to $8 a barrel in order to

tenta¬

number of the

Morgenthau

lows by Chairman Doughton:

way f dr the
past three months. It was stated on June 3 that at the first night
session an endeavor would be made to dispose of consideration of

so-called

Mr.

on June
statement that "harmonious
cooperation" was expected to. con¬

gram, Chairman Doughton of the House Ways and Means
Committee,
called for night sessions of the Committee
beginning June 3. Con¬
sideration of the proposed tax measure has been under

90-odd

members

tee and

2201

conference held be¬

amount

and

32%

of the number.

base of around $1 per

Banks and trust companies were

pared

second with 20 and 23%

base

ber and

num¬

amount, respectively.

with
of

Allis

around

share,

com¬

Chalmers

$2.25.

Also,

past

thereto

seven

with

was

City

Company.

with

National

(24) j Corporation

years

Mr.

,.-r

prior

National

Ward

Dairy

was

Products

controller

1 largest butter and

might cite the 40c tax exemption pany.;

the

its

creamery corn-

j..

THE COMMERCIAL & FINANCIAL CHRONICLE

2202

War Economy
More and

inventories. As a result it may be found that with increasing
frequency companies will have to resort to bank borrowings in
order to pay off Uncle Sam.
Less generous dividend policies may
develop as a concomitant of this^
——.
type of corporate borrowing. . . . ket is strong enough to disregard
A
few
political
commentators (bad news, and purchasers of equihave stressed the point that price ties, however strong their longceilings will be avoided through term faith, should be prepared for
lowered quality and the use of temporary but perhaps important
inferior
substitute
materials. market declines.—Ralph E. Sam¬
built up

bring

cannot

uel & Co.

our¬

....

selves to believe that this is going

serious

too

factor.

For

have

merchants

American

Cablegram Rates Cut

been

For Overseas Soldiers

that
commercial success is obtained by
distributing
the
best
possible
product at the lowest possible
price and few responsible mer¬
chants are going to take the risk
of damaging consumer good-will
by foisting on the public inferior
mVchandise merely to by-pass
brought

price

membered,

too,
obtaining

not

should

ceilings.

taxes

theory

the

anxious

the

United

States

forces

foreign lands
may now send cablegrams to peo¬
ple at home for only 60 cents a
The Federal Communi¬

message.

cations

Commission

has

author-

f which has the approval of the
w

DenartmPnt

anno,mpp

WMt^n

S the Western , Union Telegraph

merchandise

merely to obtain a
profit that in turn will be sub-'
and then we read comments as to

The
Expeditionary Force
Message, a contribution by the

how

communications

stantially taxed
this

away.

Now

that will
post-war period of low¬
ered taxes. But our own thinking
on the subject of investments is
pot based on that premise. For it
fare in

company

nation's

obvious

seems

that

from this

emerge

national

debt

and

serious

war

industry to the

morale,

now

land

countries will be added

arrangements

re¬

fast

can

com¬

problem.
The price
conceivably may be al¬
lowed to rise, HDut^taxes in our
opinion will not comdvdown any¬

pleted.

Relatives

will

able to send outbound

where

the

think

safer

far

decrease

countries

same

The

in the

near

sender

incorporate
in one message as many as three
of 103 fixed-text phrases pro¬

rather than

tax rates

to members

future.

pro¬

vided for

to estimate

may

in the

use

service.

new

industry's outlook on
the assumption that taxes will be

The

ready-prepared

late

less

ings, health, promotion, money,
congratulations and other sub¬
jects. "EFM" messages are sub¬
ject, of course, to censorship

onerous.

Post-War Armament

More and

it appears cer¬

tain that post-war

require

not

only

international
also

the

tial

maintenance

armies

United

conditions will

and

Nations.

moment

un¬

ities

any repe¬

fictitious

the

land

Combined

for the

over

again.

overlook

tenance

Too,

the

forces may
in

tor

the

war

not

see

that the

transition

too sudden

from

too

sharp

production

arms

Families

probably will
or

and

Post

large navy

many

the

code

Better

west,

war

has

Market

news,

se¬

what

words

countries

indicate.

the

destination,
the
Postal Regulation Station will
deliver the
cablegram to the
correct
Army Post Office to
make delivery.

of that book.
The

company

telegraph offices will

know

country

leaf out

serving each man.

telegraph

not

by maintaining large armies.
Perhaps force of circumstances
to take

have

lecting the proper code address,

years

ties

will

soldiers

These numbers will be used by

but local

compel

Office

the nations of Europe solved part
of their unemployment difficul¬

will

coordinate further the

Secretary

buoyant and cheerful stock
more

the

effort.

war

ican

representative

and

Brand, head of the British Food
Mission to the United States, will
act under instruc¬

represent and
of

tions

British

the

Minister

Food, Lord Woolton.
Roosevelt

President

announced

The

Wickard.
Mr. Nelson
"In

order

ganization

follows:

complete

the

or¬

for the most
of the combined re¬

needed

effective use

of the

sources

memorandum

was

the United

United States

Kingdom for the

and

prose¬

cution of the war, there is hereby
established a Combined Produc¬

The

the

Board

Chairman

shall

Rounds Dies
Harry A. Rounds, in the invest¬

convic¬

consist

WPB, rep¬
resenting the United States, and
the Minister of Production, repre¬
senting the United Kingdom.

been

con¬

with

Lee

clude that there will not be plenty

ration

first World War he

unfortunate

war

news

months

and

unfavorable

during

the

that

when

and

next
it

few

occurs

for

years.

During
was

the

Director

(of the Liberty .Loan campaigns in
j Maine and was on the State Ad-

integrated

adjusted

take

strike

vote.

give

"William M. Leiserson, member

power
money

National

the

Labor

Relations

war

the

vol¬

tremendous

Board,

made Chairman of the

was

•

financing that is com¬ Panel, with authority to pick the>
ing in the next few months, it
three-member emergency boards. '
was
learned.
In part, the same
Others placed on the panel were:'
advices said:
"These: bills

will

give

ments in the central

—New

York

"William

Federal

Reserve Banks; the power to re*
duce or increase reserve require¬
reserve

and

Chicago—with¬
out having to change reserve re¬
quirements for reserve city and
country banks. In the past chang¬
es
in reserve requirements were
applicable to all member banks.
"New York has suffered

rather

Spencer, Dean

the University
Walter P.

of,

of Chicago; Judge

Stacey, Raleigh, N. C.;

cities

Judge

Wiley Rutledge, Associate

Justice of the United States Court,
of

Appeals, District of Columbia;.

Dr. Edwin E.

Witte, University of

Wisconsin; Walter T. Fisher, Chi¬
John A. Lapp, also

cago attorney;

of Chicago; John A. Fitch of the
heavy outflow of funds in the
past few months due to the Gov¬ New York School of Social Work,
ernment's
heavy
borrowing
in and Norman Ware, member of the
New York and then spending the

funds in the interior.

have

returned

not

These funds

New

York

with the usual speed with the re¬
sult that New York banks find

their

that

reserves'

'excess

nearly depleted.

There
'excess

Connecticut State Board of Media¬
tion and Arbitration.

Clearing House Given

are

M. N. Buckner's Portrait

how¬
reserves'

are,

country,

was

learned.

portrait of the late Mortimer

N. Buckner,

Chairman of the Board

of the New York Trust Co. and past

The

problem, nevertheless, is to

have adequate funds in New York

this

because

city

center of the

the

money

President of the New York Clear¬

ing House Association, painted by

country.

New York
handle the

"In

this

ductive

resources

United

States,

monwealth
United
duce

market is prepared to
huge volume of financ¬
ing that is in prospect.

available to the

the

British

Nations

Nations,

demands

civilian

and

the

the need to re¬
on
shipping to a

populations.

the combined chiefs of staffs, as¬
the continuous adjustment of

sure

the combined production program
to
meet
changing military re¬

quirements.
To

chiefs

of staff

end,

Mr. Buckner,

"Lowering of Reserve require¬
'excess reserves'

crease

and

pro¬

which, it is stated,

the

Federal

the combined

was

Reserve

In advices to the New York

"Herald-Tribune" from Washing¬

tion and Resources Board current¬

informed

concerning military
requirements, and the Combined

Open
in

the

New

the

effect

the Committee.

shall, each appoint a deputy; and
the Board shall form a Combined

utilize

the

Joint

War

Pro¬

duction Staff in London, the Com¬

The

poration.

President

American

of the

Loco¬

■

motive Company,

survived

his

was

and
na¬

Alstyne, Jr., senior partner of Van

tional agencies for war production

Alstyne, Noel & Co., New York

Joint

other

Aircraft

existing

Committee

combined

in such manner and

react. We do not believe the

States Fuel Administration.

tent

to such

the

ex¬

it shall deem necessary."

two

sons,

David Van

States

and

Board,

the United

widow

Materials

served

Council. He

Raw

a mem¬

executive

Mr. Neilson, nationally known
portrait painter, is a member of
the National Academy of Design.and is now serving on its.

77.

died at the age

He had been

Vice-

formerly

and charitable institutions.

Pacific

Northern'

and

Board

Bank Board • of the
State of New. York since 1932
and

mechan¬
Engineer with the Louisvilleand

Second

.capacity on the boardsvof a large
number of other corporations;

David Van Alstyne; a

Railroads

the

ber of the
.

Nashville

Commit¬

was

for

Liquidation

Deposit

ical

addition, he

the Reconstruction Finance Cor¬

penalty powers are
*

Alstyne, Sr. Dead

tide

Federal Reserve District of the

given to the Reserve Board.'"

D, Van

the

President, he directed the
banks throughout

Chairman

tee

"(2) It. removes from;the Act
the provision that banks cannot
pay dividends or make loans, if
they do not maintain proper re¬
serves:

of'

resources

stem

the country.

assistance to

with

staff and the Combined Munitions

Assignment Board currently in¬
formed concerning the facts and
possibilities of production..

this-

growing crisis. The National

its

the Boston Reserve
Production and Resources Board
Board.
The change becomes ef¬
shall keep the combined chiefs of
fective as of June, 1943.
paired

Credit Corporation was organ¬
ized under his leadership and,

Federal

York

bank

private

the

separate place on
Heretofore it was

New

was

the Nation

Amend the setup of the
Market Committee, giving

Reserve Bank

the

1921 until

Clearing House Committee in
1931, he was active in mobilizing

2, it was stated that the
bill proposes the following:
"(1)

Feb.

Chair-

was

elected President of
the
Clearing House for two
terms, 1932 and 1933, and his
distinguished services in that
capacity during the bank holi¬
day in 1933 were generally rec¬
ognized.
As Chairman of the
year,

Board, also contains other provi¬
sions.

death

his

adequate funds for banks
there to support the Government
security market."
The bill,

who

Board

the

York Trust Co. from

vide

written

man

ments in those two cities will in¬

and the Combined

Assignments Board
shall keep the Combined Produc¬

bined

place with

portraits of 27 past Presidents of

ton June

this

Munitions

Buckner takes its

Mr.

learned here.

Com¬

"(b) In close collaboration with

"3.

The portrait of

Assembly Room.

; "As soon as these bills
are
the Clearing House, dating back
passed. Reserve requirements are
connection, the Board expected to be lowered in both to 1853 when the Association was
account of the need for New York and
Chicago—the two formed. The announcement in the
utilization of the pro¬ central
Reserve
cities,
it
was matter says:

visory Committee for the United

program,

the market will not substantially
|
mar-

for

the strategic requirements of the

and

Higginson Corpo¬

strike

New York Raymond P. R. Neilson, was pre¬
"2. The Board shall:
will handle most of the Treasury's
sented on June 8 by the trust com¬
"(a) Combine the production financing. For that reason, it was
pany to the Clearing House Asso¬
programs of the United States and learned,
the Treasury is quite
the United Kingdom into a single anxious to make sure that the ciation, where it was hung in the

...

optimistic indeed to

the

must be

plenty of
throughout the

Staff.
The Board shall arrange
spreading that the war's ment business in Portland, Me.,
for such conferences among United
duration is going to be substan¬
for more than forty years, and
States and United Kingdom per¬
tially less than was anticipated--a
since
1932
head
of
Harry
A. sonnel as it may from time to time
few months ago.
It may well
deem necessary or appropriate to
be that the m
Ket will continue i ^oun<*s ^0,» died at his home at
to work its way upward but one the age of 72. Previously he had study particular production needs;
tion

market

ever,

tion and Resources Board.
"1.

bills

bank

adequate
to prepare the New York

Claude

eration the members of the Board

mar¬

ket.; More and

ex¬

resources

Agriculture

of these two
central

ume

and

"4. To facilitate continuous op¬

both east and

brought above

aim

of the United Nations in order to

of the

the

Representative Stea(pern.) of Alabama, while

the

minimum and the essential needs

cards
giving the number of the Army

substantial army will serve
to dilute the problem of post-war

For

from the War Department

unemployment.

what

will be
soldiers, sail¬
ors pr marines by rank, name,
identifying serial number and
Army
Post
Office
Number.
addressed

main¬

days

know

June 1 by

for

The Combined Food Board will

The "EFM" messages

not

substantial
armed
be an important fac¬

the maintenance of
and

must

not

be delivered.

mistake

same

wil

sending these mes¬

countries the cablegrams are

fact

peace.

fall-off

toward dis-;
completely
are not

constitute

and
likely to make the

and friends

announced

the

use

resources

plan the most effective
peditious use of the food

sages

economy

and

the prosecution of the war.

economies and steps
armament

effective

most

maximum

false

Production

countries' combined

shall take

Relatives

Roosevelt

June 9 the appointment of the

The President created this new
Board,- to consist of gall
Donald M. Nelson* Chairman of on June 5 Senator Wagner of New procedure for railway disputes
pyj
introduced
a
companion
the War Production Board, and York
Executive Order on May 21; re¬
Oliver Lyttelton, British Minister measure in the Senate^ In ad¬
ferred to in our issue of "June 4,,
of Production,
who is now in vices from its Washington bureau,
Washington, shall integrate the the New York "Journal of. Com¬ page 2127.- The Associated Press,
two production programs into one merce" stated that the. primary Washington advices June 9 said:

tifying foreign countries only as
arbitrary code words.

President
on

would

Resources

providing all Western

are

Con¬

the Federal Reserve Banks

The

Union offices with charts iden¬

the

and

Under bills introduced
gress

be empowered to change
nine
members of the National'
regulation reserve require¬
of a Joint Great Britain-United ments of any one group of mem¬ Railway Panel from which emer¬
States Food Board was announced ber banks. The House bill amend* gency fact-finding boards will be
by President Roosevelt on June ing the Federal Reserve Act, de* chosen to adjust disputes before'
9 on behalf of himself and Prime signed to grant such authority to
railways employees actually go
Minister Winston Churchill.
the Reserve Banks was introduced

Harding administra¬
tion, so ably directed by ex-Chief
Justice Hughes.
For the world
has learned that army and navy

tition of the disarmament confer¬
ence

States

Shangri La to conceal the base war, as indicated to the Board by
from
which
American
planes the combined chiefs of staff, and
bombed Japan, military author¬ to all relevant production factors.

by the
Certainly at the

likely that there will be

Roosevelt's

President

Like
use

navies

highly

re¬

greet¬

restrictions.

but

of substan-!

appears

texts

correspondence,

thorough-going

collaboration

United

Board

United Kingdom and the creation

friends

and

of the armed forces stationed in

fast

ceed On the basis of little

"EFM" cablegrams

or^as far as
they did after World War No. 1.
In
all
investment
planning we
should

the

Combined

Resources

the general functions of the two
from
Great
Britain,
Ireland,
Newfound¬ boards in memoranda addressed
and
Hawaii.
Additional to Mr. Nelson and to Secretary

sages

adjustment

for

and

Northern

structure

near

Production

available only for inbound mes¬

will
huge

with

war

Establishment

R. W. Wickard will be the Amer¬

inferiortip

sell

high
will

merchants

armed

!?ed \he Weste™ Union Telegraph
re-[£°%
*e™c?

with

that

Members

Large totals

corporate funds have gone into expanded plant facilities and into

However,

To Permit Changes

large corporations we believe will be forced to

borrow' substantial sums in order to meet huge tax bills.
of

In President Appoints
Reserve Requirements
Railway Labor Panel

U. S,-Britain Combine

And The Market

Thursday, June 11, 1942

emy

graduated from
Naval

Acad¬

in 1905, leaving the Navy

1907 because of ill health.

Buckner's

death

was

re¬

City, investment firm, and Ward ported in these columns March 5,
Van

Alstyne.

page

968.

Volume 155

Number 4080

THE COMMERCIAL & FINANCIAL
CHRONICLE

April Foreclosures Down
Non-farm

real

estate

Dutch

of June

the

above

April

from

the

Becker

the

was

and

Board of Directors held on June 8.
Mr. Becker succeeds John

Lowry,

who'

remains a member of the
Board,
Mr. Becker has been a
Director of the Association for

reported they had been
chartered on behalf of the United

agency

some

States government.

previous month
The official Dutch news agency
favorably with the 0.4%
said an agreement to that end had
normally expected at this time of
been signed by W. Averell Harrithe year," said the report. "After
adjustment for the usual down¬ man, American Lend-Lease Co¬
ward movement, the foreclosure ordinator, and British and Dutch
decree
transferring
index showed a total reduction for officials. A
the ships to the Dutch government
themonth of 1.4 %."
It i is also
was signed by Pieter A. Kerstens,
stated that the Bank Administra¬

and

years

Chairman

has

served

Committee

its

Lumber

For War

elected

Commerce

Industry Association of New York,
Inc., at the annual meeting of its

Dutch flag today for the duration
of the war, and the Aneta news

15-year

low record of 3,630 cases reported
in February.
"The 1.8% decline
in number of foreclosures
during

President

vThe Dutch government in. exile
requisitioned all ships under the

economists reported on June 6. It
is noted that the April figures are

slightly

.iNeal* Dow

The following was contained in
Associated Press London advices

cases reported for March and
5,445 for April a year ago, Federal
Home Loan Bank Administration

WPB

Of Com. & Ind. Ass'n

Charter: To U. S. Govt.

closures in April totaled only 3,856, as compared with the 3,925'

only

Becker Elected Pres.

Ships Put Under

fore¬

2203

The

War

that;

ports
the

most

units

Restrictions

Housing Lifted

Production Board

100,000 of
war
housing

construction; have

re¬

ceived relief from the restrictions
on lumber deliveries contained
in
Limitation Order

L-121,

made

known

stated that

and

was

investigation by
Housing Administra¬

the

WPB

lumber

and

Foreign Trade, as Chairman of its lumber

compares

Industrial

Committee,

and

after

the National

tion

June

SchedulesMeeting

re¬

than

essential

Cleveland Bond Club
CLEVELAND, O.—The
meeting

Cleveland

the

Bond

will!;! be

Canterbury Club
19.

After the

annual

Club

held

the

Friday, June

of the newly,
elected governors are
announced,
there will be an open discussion
of the part which the. Club can

play in the

products
branch, these
housing projects were selected as

Four

names

effort,

war

new

governors

are

elected, since the terms of H. H.
leader
Covington, M. J. M. Cox, and D.
effort.
P. Handyside
are
expiring and
type Corp., manufacturers of type¬
John D. Blandford,
Jr., National Frank E. Gibson, Jr., whose term
setting machines, and a Director of
Housing Administrator, according would have run until
the Bank of the Manhattan
1944, has re¬
Co., to the New York "Herald
Trib¬ signed as he has left the invest¬
Consolidated Edison Co. of New
une," said on June 6 that construc¬ ment business.
Minister of Commerce and Indus'
tion's seasonally adjusted index
York, Brooklyn Edison Co. and
these projects
New York Dock Co. He is Chair¬ tion; activity on
for April stood at 29.1%
■;
the try.•
The nominating committee has
would have ceased almost imme¬
Aneta said it was learned that man of the Executive Committee
equivalent of a 71 % decline from
diately unless relief had been presented the following slate for
the average level of the 1935-1939 even before the action was
taken, of the National Industrial Confer¬ granted. The
100,000 war housing governors, three of whom \yilL
ence Board. Other officers
base period. During the first four approximately
1,250,000 tons of
elected units
selected are divided almost serve for three-year terms apd
months of 1942, the report
Dutch shipping had been taken for a one year term are:
one
for two-year term: John D.
said,
equally between those publicly fi¬
"there
were
15,411
foreclosure over by the British War Transport ">■' Stephen F. Voorhees, of Voor- nanced and
privately financed. In Burge, Ball, Coons & Co.; Walter
cases, as compared with 21,519 for Ministry on behalf of . the United hees, Walker, Foley & Smith, First
the former category are 76
Carey, Robbins, Gunn & Co.;
pro¬
the same period: of last year. This States;
" ' f
Vice-President.
! 'Vjects in 25 States, covering 54,039 Emile A. Legros, First Cleveland
decrease of 28% is even more
Thomas S. Holden, President,
The
news
service
estimated
units, while the privately financed Corp.; David A. Field, First Bos¬
F. W.
favorable when compared with the that
Dodge Corp., Second Viceton Corp.; Herman J.
up to the fall of Java, some
projects include 51,350 units in 32
Sheedy, Mc14 % decline which occurred in the
President.
"
2,750,000. tons of Dutch shipping
localities in 20 States.
Donald-Coolidge & Co.; and A. J.
similar period of
Jeremiah D. Maguire,
1941, as com¬ had been available. It is said Dr.
President,
Stiver, Saunders, Stiver & Co.
pared
with
1940."
The
report M. P. L. Steenberghe, head of the Federation Bank and Trust Co.,
Members
of
the
Third Vice-President.
added:
nominating
special
Dutch
mission
to
the
Vice-President.

The group's new
is President of the Inter-

most

urgently needed in the

war

;

"Geographically,
24
States
and the District of Columbia re¬
ported foreclosure decreases in

April,
while

rate

The

pared

with 71,745 foreclosures
occuring during the previous
twelve months."

The Bank Administration's fig¬
non-farm real estate fore¬
closures are based on reports of

county and court clerks, record¬
ers, sheriffs and Government of¬
ficials in about 1,800 communities.

Seize Refugee
The

Treasury

nounced

amounts

Department

June

Currency
that

currency

officials

customs

the

in this

five

United

arrival in New York

taken
the

June 1 of

the S.S. Drottingholm.

lease

The Drot-

returning from Axis

Treasury

only

$249

his

to have concealed

Sock.
was

said

possession

being searched,

upon

announce¬

incoming pas¬

one

had declared that he had

senger

The

over

currency

taken

into

the

but,

$9,000 in

discovered

special

gratifying.

ment

was

made

which

sition

was

over a

No
as

announce-

to the

dispo-

of the currency
taken other than the

any

that it would
to; the.

Loudon

Jan

J. Con
and

yef

Ciechanowski

the

Belgium

Robert

Van

Ambassador,

ment

tal

noted

Count

Federal

turned

Reserve

Bank of New York for further

vestors

past

action by the

Treasury Depart-

ment.-;;

! ; James

fiome after,
age

gaged

45.

Boylan
a

died

Mr.

Boylan

private

Charles
and

was

en¬

Cook, stock broker
of

member

the

Board

Exchange,

found

was

bullet wound

the

dead

heart at his

listed

was

apparent

the

suicide.

police

were

Two

notes

of the EA

turers

was

President

Laboratories, manufac¬
electrical

Brooklyn, and

lic and the

police gave

suicide, but it

pared

86,000

and

had

been

was

also

in
a

reason

•;

specialist

Scholle
member

Past Exalted

Stock

Exchange,

York

investigation by the State
Attorney General for almost nine

ties.

She

and

had

times

that

Do¬
cur¬

pre¬

480,000

tons,

increase

claimed

she

was

considerable below the May total
of

various

cousin

been graduated from

approximately

involved

the New
;.

Chicago

the

Commodity Exchange.

-New

casualties

according to
Inc.,

Dun

totaled

$9,839,000

955

1942

May 1,
293,397 tons,

aggregated

while

the stock
Late

British

the

same

was

date in 1941

college in

untrue.

was

curred

Leads In War Bond Sales
The

Illinois-Wisconsin

Home

Loan

twelve
in

the

ing

the

loan

sold

Federa,

leads

nationwide

number

and

have

district
of

the

savings, build¬

bonds

the

which

all

November, 1941, the
of

Foods

the

divisions

Commercial

struction

tions

year

Service

group

the

Com¬

only the

ago,

increase

while

into

divided

construction.

pared with

corded

are

exceptions of manufac¬

and

system

institutions

war

which the insolvencies

turing

Illinois-Wisconsin District

equal to

Division
and

the

re¬

Con¬

unchanged,

was

remaining

classifica¬

lower.

were

volume

dent

the

Bank

this

Federal

Chicago,

district.

Home

which

said

Loan
serves

that

the

constitute
fifth

country

high

ratio

honor

all

those

have

victory

the

reached

their

financing
The

program.

have

sold

war

bonds

in the

covers

current issue of the

the

1941,

Mr.

bond

through

Gardner

Review,

sale

period

March

added

146

April with $2,953,000

Wholesale insolvencies

increased to 69 with $877,000 lia¬
bilities from 65, with $1,132,000 in

April.

In the retail trade section,

failures

were

to 647 with $4,-"

392,000 liabilities, compared with
624

involving $3,829,000 in April.

Construction insolvencies

were

percentage of assets, is pubr.

Federal Home Loan Bank
and

fourth

roll, listing 210 associations

which
this

which

the

between

with

liabilities.

honor roll associations in this dis¬

31,

with $1,175,000 liabilities as com¬

pared

with

$1,033,000

liabilities in April 1942.
cial

failures

$471,000 liabilities
with

the in¬

Commer¬

numbered

with

against

$335,000 liabilities in April,

1942.

■

sav¬

When the country is divided in¬
it ap¬
more

1942,

while five had fewer failures and
one

remained

the

same.

Those

With Wayne Hummer

districts having more failures than

(Special to

The Financial Chronicle)

OSHKOSH, Wis.
Shepard, for
in

—

Chester D.

many years a

partner

Merigold & Co., has become

sociated

26^,508 tons.

Minister

and

liabilities,

September, 1941 ,to April, ings and loan institutions in the
to Federal Reserve Districts
1942
inclusive, totaled 326,912 nation which have sold more than
long tons as against 298,612 tons
pears that six districts had
during the similar period of the $500,000 in bonds are located in insolvencies than in
April
previous season.
Exports for Chicago.

Dominican Republic

Business

year.

month,

with

compared
82,484 tons for the corres¬
ponding eight months last year.
Sugar stocks on hand in the

last

von

Alsace, all of which

with

the

was

Ago

value, as com¬
394,000 tons in the lished
an

Than A Year

compared with 938 involving $9,Papen, Hitler's Ambas¬
sador to the Balkans, that she was 282,000 in April and 1,119 involv¬
the sister of a bishop in Strass- ing
$10,065,000 iiy May, 1941.
bourg and of a priest with the
The
increase
over
April oc¬
German Army, and that she had

trict

the

and

<ii

May Failures Lower

Bradstreet,

the eight month
period amount¬
ed to 113,262
tons, as

become

Brothers.

Exchange,

because of her stock activi-

years

Production during the first
eight months of the current sea¬ formation that two of the 16

learned

member in 1929 wheif he

partner

under

1942.

New York Stock Exchange for a

Curb

the

raw

season,

serving

it was revealed that she had been

according to Lamborn &
Co., New York, who further state: May

Street, NeW York City,

York

Ruler of the Brooklyn Elks.

defrauding them of their
May
business
failures
while
savings by inducing them to buy
worthless mining stock from her; slightly
higher than in April were

21.8%,

Mr.- Cook maintained offices at
40 Wall

estimated

with

left

business conditions.

equipment, in

was a

sale

Claud Turben.

son,

the

investors.

production

liminarily
long tons,

not made pub¬

previously had conducted
rities business.

were

portion of moneys

minican Republic
during the
1941-42 crop season is

by Mr. Cook

number of years, having

secu¬

and

Olderman,

Wilson,,

in¬

sent to in¬

rent

home in New York City. His death

.Wall Street, New York Gity, and
a

from

Sugar

Governors of the New York Stock

at Lis

banking

meters

Manufacturing
failures
last
exceeding 5% of their
month numbered
own
134, involving
assets, it was reported on
that
May 28 by A. R. Gardner, Presi¬ $2,924,000
liabilities,
compared
de¬

Dominican Sugar Crop Up

C. K. Cook Suicide

over

hrief illness, at the

were

nor

many,

and

that the broker had been worried

J. J. Boylan Dies

purchased

payment of profits

actuality

agreements

on a ren¬

20%, but that the

never

corpora¬

June 4, page 2119.

for the
■

the

which investors

any

received

China

columns

that

The indict¬

municipalities

receive

stalled

these

of her native
country, Ger¬

women

day in

Court

monthly income checks

the

and

year

Cleve¬

lease parking meters

fendants

Diamantopoulos.
Signing

basis,

She had preyed

ceny.

are:

Chairman,

years

suspended

District

charged
was

to various

Minister, Cimon

was

Federal

tion

to three

committee

sentenced

was

in the peni¬
tentiary on her conviction on two
counts of first degree
grand lar¬

Parking Meter Cor¬

Straten-Ponthoz

received

poration of America.

and to the Greek

on
charges of fraud in
connection with the sale of
agree¬
ments in the

Nether¬

Der

Kraus

Cleveland

Morgen-

Poland,

Ohio,

the

Ambassador

Bolden, Elmhurst, N. Y.,

sentences of

June

to Am¬

The

the

over

Antoinette Heim

Franz

Howard

land,

June 8 submitted the

agreements

membership

Get Suspended Sentences

stierne of Norway and Ambassa¬
dor

Di¬

-«•

draft proposals
Wilhelm

the

past year.

are

Secretary of State Hull

bassador

indicated

was

Russia, though not

handed

submitted

crease

accepted.
5

report

rectors by the Association's Treas¬
urer revealed
a
considerable in¬

Washing¬
substantially the
same
as
those previously agreed
to by Great Britain and China and

statement made by customs of¬
ficials

for

Ameri¬

accounts from

press

the Treasury announcement,

most
•«

increased

custody,

a whole they considered the resuits of the search for currency

city.
Calling attention to
Association's program in co¬

Nations

post-war reconstruction.

ton, June 8,

found

was

Treasury officials said that
-

and

The proposals,

which added:

;

United

world-wide economic relations in

draft

ment said that

invited

assistance in the present con¬
flict and a basis for
improving

and Latin American diplomats and

The

the

has

agreement, .^providing

continued

lands and

areas.

tingholm carried many American
other citizens

States

operation with the war effort, Mr.
—Belgium, Greece, The Nether¬ Becker said that he
anticipated
lands, Norway and Poland to be¬
considerably enlarged activities
come parties to the master lendalong these lines.

heavy

were

es¬

The

offered

an¬

was

the Merchants'

Association of New York, is the
largest < commercial organization

can

ures on

Association, which

Offered Five More Nations

dwellings

tablished in 1897

Lend-Lease Master Pacts

foreclosures

per ,1,000
during
April
was
2.4%, compared with. a,.2.8%
monthlyaverage, - rate since
April, 1941. Some 52,273 cases
were registered from
May, 1941
through April this year, as com¬

in General Sessions in New York

tary.

and

The

Sentenced For Fraud

Samuel D.
Leidesdorf, S. D.
Leidesdorf & Co., Treasurer.
Thomas Jefferson
Miley, Secre¬

States, had been charged

with executing the new decree in
that < country as Kersten's agent.

to, March,

21
reported
rises
showed no change.

three
-

compared

United

Co. of

with

as¬

Wayne Hummer &

Chicago and will make his

month ago are New

York, Phila-

dephia, Cleveland, Richmond, At¬
lanta

and

tricts

Kansas

having

month

than

City.

fewer
in

The dis¬

failures

April

are

last
Bos¬

ton, Chicago, St. Louis, Dallas and

ar¬

headquarters in the firm's Appleranged
for
the
purchase
of
practically the entire 1942 Do¬ ton, Wis., office, 123 South Apple-

San

minican sugar crop.

insolvencies in May as in April.

ton Street.

Francisco.

District had

the

The

Minneapolis

same

number

tion these

Our

Tomorrow's Ma rkets

Reporter's

v,Walter Whyte

(Continued from page 2197)
generally assumed that ultimately
cline from present levels will the Reserve will .be faced with
of

one

alternatives, viz., ex¬

two

market

u P-TOW N s AF TDK
'

\/V"

Investment dealers and under¬

writing firms
of time

THE MOVIES

plenty

finding

are

open

•

velopments, taxes, priorities,
etc., to consider. These are by
no means clear. That they will
have an.«effect on security

prices isr a' certainty; some of
it advei$fe. But either the

no^fket knows something, or

■:

act

turbed.';
)'XT'r

for

nothing,
worried

it;>» knows

doesn't

dis-

;

Reducing it down to aver¬

the Dow Jones, I
expect the current setback to
.carry down to about 102. At
this writing they're about 104.
At the lower figure I believe
the market will once again
f4)1 .asleep and move sideways, though it is possible
ages/ say

of the

that if additional news
sort

Midway

from

got

coirigs along, the market will
resume
its
upward trend
without any
further waste
motion. But failing any spe¬
cific news a dull, trendless
series of sessions is indicated.
♦

Naturally there is another
sidei,also, a side highlighted
-

by1 the war. For while the
market may go up on further
good news it may by the same
token go doWn on bad news.

Commission Is the Thing

engaged in the distribution of se¬
curities is still vitally interested
in the

opportunity to make a dol¬
evident in

lar became

with

the

connection

done

financing

recent

which

commission

liberal

rather

the

That the rank and file of firms

available

normally

such business.
But of late it is understood that

several such deals have been slow
in

out, notably in the
of several blocks of rail and

working

case

the

Virginia Public Service
utility bonds, with the result that
Company.
the firms underwriting the busi¬
This
$36,500,000
undertaking
ness, have
temporarily at least,
consisted of $26,000,000 of first
seen their profit by way of com¬
mortgage 3%% bonds and $10,mission, substantially offset by
500,000 of 5% debentures.
The
paper
losses on the deal as a
latter carried a selling commis¬
whole.

for

sion

2Y2

against

dealers,

for

points

bonds.

dis¬
played only meager interest in
the bonds as long as debentures
were
available.
Consequently
it

the

developed

latter

moved

distribution

dealers

out

first with

completed

being

Conferees Vote $50
Senate-House

The

Committee
vice
out

Conference

the Readjusted Ser¬

Pay bill on June 9 followed
the instructions of the full

Senate

increase to

$50

voted

and

House

and

month the base

of buck privates and appren¬
cleaned up and all effort concen¬ tice seamen in the Army, Navy,
Marine Corps and Coast Guard.
trated in the bonds the latter be¬
The conference group had twice
gan to move out briskly.
debentures

the

were

pay

previously compromised on $42 a
month and later on raised it to $46.
ele¬ The House rejected on May 27,
ment heeded to assure success of by a 332 to 31 vote, the first com¬
a new money undertaking at the
promise, insisting on the $50 a
moment.
At
any
rate, under¬ month approved by it on May 13;
writers found no difficulty in dis¬ and the Senate on June 8, by a
New

Money Issue Goes

Quality

posing
year

apparently

the

of 30-

the $15,000,000

3s, brought out for the Public
Electric & Gas Corpora¬

Service
tion.

vote of 58

the

refused to agree
figure, instructing its
to approve the $50 basic
to 20,

$46

conferees
pay.

Brought out at 104V2, this issue,
though getting away to a some¬
what sluggish start, moved quick¬

passing the bill originally on

March

the Senate voted in
favor of a $42 monthly base pay.
The House, however, on May 13,
The careful trader will there- ly to buyers, with institutional
investors
snapping up the first raised this figure to $50; referred
fpre keep in mind the stops opportunity, in some time, to put to in these columns May 21, page
1941.
[applying to the securities fresh funds into a utility issue.
Under the bill, first-class pri¬
Some of the more recent offer¬
•recommended by this column.
ings which proved a bit "sticky" vates and seamen, second class,
in the initial stages, are now re¬ will receive $54 a month, while

[The

views

article

Chronicle.

an%

necessarily at
with

coincide

time

ing the R. H. Macy & Co. issue
and the financing undertaken by

second

thii

expressed

not

Philip Morris & Co., Ltd., Inc.

crease.

those

tht

presented
those of the author only.]
They

are

Switching In

Shuffling of railroad sections of

the

trade

butter"

H. Hentz & Co.

Insurance

New

York

New

York

Exchange

Curb

Exchange

Cotton

York

New

Exchange

Commodity
Chicago
New

And

other

Trade

Cotton

N. Y. Cotton
;

Inc.

Exchange,
Board

Orleans

Exchange

Exchanges

in¬

increases

The fight

are

of June

to become

in the Senate for the

portfolio

managers

busy

Exchange Bldg,

for

The

hearing

uled for June 8 by the

weeks

Sees Higher Taxes

NEW YORK

As Threat To War Effort

BOSTON

CHICAGO
*

Sales Billed

1st

Quarter
Quarter

1941

;

ILAMBORN
u

& CO.

99 WALL STREET

•

'\.l

Donald in person

reduction

;•; SUGAR
Exports—Imports—Futures

income

crease

account of the great

taxes

this

the

now

proposed.
in

period

than

net

Further,

income

for

about after
completed new

came

'the company had

financing

in¬

taxes, which
accrued at a rate less

reduction
1942

the

extent

of more

$56,000,000 of which1 over
$36,000,000 was obtained from the
p.»

Califor¬

A druggist from the effete East tries to open a drug
store only to run smack into the town boss and villain.
But the
boss's girl is on the druggist's side.
After all kinds of shenanigans
the druggist gets the girl, saves the town from typhoid and the vil¬
lain dies from lead poisoning.
The kids will love it. . . . Two weeks
nia's gold

rush.

I reviewed Paramount's "Take A Letter, Darling." I liked it and
so in print.
For even if some of the dialogue was hackneyed I
found most of it witty and amusing.
For this an anonymous corre¬
ago

said

He encloses

spondent takes me to task.

clipping of Crowther's

(N. Y. "Times") review, and my review and asks, "Did you really
the picture or is it a plug on general principles?
Or was it a
rewrite of the press release of Paramount?"
It might interest my
see

correspondent to learn that movie companies do not send
They furnish a synopsis of the plot
Furthermore, of all the movie companies my relation¬
ship with Paramount is the least pleasant.
But that's a personal
matter and has nothing to do with my reviews.
If my correspondent
is further interested I suggest he read the reviews of "Take A Letter,
Darling" as they appeared in the "Herald-Tribune," "Newsweek" and
the "New Yorker," just to name a few.
anonymous

reviews to movie critics.

rave

and the cast.

DOING THE TOWN

"Beach"

jam at Fefe's Monte Carlo Beach (it's a night club,

The

is put in to make it sound more interesting), like a Times Square
rush hour.
James A. Farley and Mrs. Farley towering over the mob.

Chubby Ham (Joe Palooka) Fisher and nov¬
♦ Columnists all
over the place.
William Randolph Hearst, Jr., with Lady Ashley; who was Mrs;
Douglas Fairbanks. Anatole Litvak and Otto Preminger. Gene Caverello and Fefe Ferry with Chesire-like grins at the milling mob;
Same bartenders. Same headwaiter, Bobby. Same cheek room girl,
Edith. The room is a little different but still a show window for cafe
They're both that tall.

elist Louis Bromfield head to head.

society, Hollywood and Broadway. Smooth dance music by Sonny
Kendis and rhumba beats by Don Caballero's outfit.' It all adds up

time in. ... Songstress Linda '
a maid and asked her first
applicant for her references. "I tore them up," said the maid. "That
was a silly thing to do," replied Linda.. "No ma'am," answered the;
maid.
"You shoulda seen what they said."
.
The skeptical are
always knocked for a loop when the Cotillion Room's "mind reader"
Myrus, starts batting 'em out.
Give him you initials and he tells
you the full name, address, phone number.- Sure, it's a stunt and it
can't be done.
But Myrus does it.
Rest of the show at the elegant
Cotillion Room just fair, though Beverly Whitney, who doubles from
"Let's Face It," is a charming singer. . . ; Meyer Davis spots Paulette Goddard at the Mayan Restaurant with a worried look on her
face.
"I had it on the tip of my tongue a minute ago and now it's
gone," she says. "Don't worry, it'll come back to you," replies Meyer.
"I'm not so sure," explains Paulette.
"It was a postage stamp." . . .
The Johnson Bill which calls for payments to parents and dependents
of fighting men certain sums of money says two parents rate $25 a
month.': Then the Bill goes on to explain that the Government will
contribute "an additional $5 for each parent in excess of two. . . .
The Penthouse Club must be quite popular with high Army, Marine
and Naval officers.
Hardly ever saw the room without an. Army
General, a Marine Colonel or at least a Naval three striper; .
v
as

fine place to have

yourself

tells of the time she was hiring

Income Af ter

walking down

Billingsley, owner of that 53d St. saloon,
Ave.,
his
forefinger
buried in his nostril . . . very ele¬

Taxes

Fed. Taxes

chic, my deah.

gant, and so

•

18,805,658

4,124,654

8,239,415

5,627,264

9,063,632

The Penthouse Club
SOUTH

30 CENTRAL PARK

the

10,566,243 —1,502,610

after

provisions

for
$41,000,000. This represents a return
of slightly over 2% on such busi¬
$1,000,000
taxes

ness-

net

business of

and. less

income

not

than

50%

April,- 1941.
enough profit to pay
to

that

Adjoining The Plaza

Airtoit^
a

beautiful location, overlooking

Centred Park to the north,-

even

taxes in
if

employees,; without

must .be

considering
Svi

open

and

done

■

do "the job that

24 hours a

*.:4

vA.

skilfully

A .A;
»

^..

•

,»

Entertainment after. >11 Pi M.'

any

are

doors

form are expenses),
to keep the factory

food,

S"- -A

prepared,

profits^ It is written to emphasize
the fact that we must have moneyleft - after paying expenses . (and

the

Serving, best

;

hardly necessary to add
is not a plan for war

This

stockholders

i"T

•

this

and continue reasonable wages to

-i

"It

over

for

modest dividends

said:

.•iO

>••;!

A bing-bang western,

complete with fist fights and gun battles set in the days of

net

Federal

were

than that

Yet the songs

There's the plot.

and marries her.

well-recognized necessity to
make some financial provision to
"The significance of these fig¬ sale of additional stock that in
cover present and post-war con¬
ures
lies
in the
fact that not¬ good faith essentially involves a
ditions. We are alarmed over the
withstanding the great increase in 20% increase in the company's situation. We are frankly won¬
dividend liability.
output which should and did in¬
dering what is to become of the
"A preliminary examination of
crease
the operating profit and
company." • ■
1
"
' ."
the gross income, the final result our income, for April, 1942, dis¬
In
conclusion, Mr. Robertson
closes a net income of less than
was
substantial

But she being an

So they get married.

him.

angel and not familiar with mortal ways gets him into all kinds of
jams.
Finally Eddy awakens, runs downstairs; meets Miss Mac¬

NEW YORK CITY

81,141,645

31,017,766

Increase

ll'l

22,930,312
13,860,680

112,159.411

1942

1st

Fed. Taxes

SWITZERLAND

from heaven to marry

Madison

Income Before

DETROIT

PITTSBURGH

GENEVA,

full dress masquerade at which all his companions de amour
But banker Eddy, bored, runs up to his room to rest,
and dreams that angel Jeanette MacDonald comes down

present.

are

Sherman

(Continued from first page)
•

range a

falls asleep

Hearings Postponed

reported

been

standing around street corners singing "I Married An Angel" or
casting admiring glances at the gentry.
They're probably hiding in
bomb shelters.
Anyway, here's the story: A young Budapest banker
whose directors feel he should attain respectability by marrying, ar¬

Ware

originally sched¬
Securities
culling their rail¬
and Exchange Commission to de¬
road holdings with a view to
termine whether the registrations
shaking out less desirable in¬
of
William
T.
Maloney, Dover,
vestments, judged on the basis
Del., and John L. McDaniel, Wil¬
of long-term prospects.
mington, Del.,
should be sus¬
Such segregation is understood pended or
revoked, were post¬
to be still going on. But in addi¬ poned till June 15.
some

Stock

yearly

higher base pay was led by Sena¬
tor La Follette (Prog., Wis.).

business.

have

Members

$300

ensigns

and

"bread

the

granted

are

and

lieutenants

effective

panies is providing a fair run of
day to day business, better known
18S6

get

The pay

Rails

Good

their portfolios by insurance com¬

Established

grade enlisted men will
corresponding increases and

higher

Whyte

real, or the plot itself, in the light of today's headlines,

seem

dated, that it becomes just another one of those things; The love
life of a playboy Budapest banker may have been very amusing in
1938. But this is. 1942 and the people of Budapest, I'm sure, aren't
so

30,

ported to have been worked out
quite satisfactorily, these includ¬

Thursday.

—Walter

don't

rish, Edgar Kennedy, Patsy Kelly, and others.

Army-Navy Base Pay

75 to 80% sold.
once

of 1938 Dwight Wiman took the Vaszary Janos story, gave it a
Kodgers and Hart musical treatment opened it at the Shubert in New
York and ran it until February, 1939.
As a top flight musical it was
rated a hit. But either the story isn't good movie material, the actors
mer

are

while the bonds remained only

But

Angel" (MGM), Jeanette MacDonald and Nelson

Eddy; with Edward Everett Ilorton, Binnie Barnes, Reginald Owen,
and others.
Directed by Maj. W. S. Van Dyke II.
Back in the sum¬

really catchy and the giris, eyestoppers. . y . "In Old California"
(Republic), John Wayne, Binnie Barnes, Albert Dekker, Helen Par-

rate of % point for the

"I Married An

in which

their hands

market operations
to take care of the recurrent sec¬
by Reserve Regional Banks, or a
So far all that I've said is
general lowering of the required ondary distributions that have
based on the market interpre¬ reserve for all system institutions been coming on the market in re¬
cent months.
tation of the war picture. in order to forestall any harden¬
These undertakings are attrac¬
ing of interest rates.
There are still domestic de¬
tive in a general sense considering
tensive

A-

better

Secondary Deals Still Sought

far or last very long.

the

issues, indicating "switch¬
ing" is fairly active.

(Continued from first page)

go very

*'"y'Ay T'.''70

found
of

grade

Report

Says

companies are reported
frequently on both

being
sides

Thursday,; June 11, 1942

CHRONICLE

THE COMMERCIAL & FINANCIAL

2204

>*;\

/ Teleph6n«'PLa*a3-6910A

day.."
-tti.

■

vhft-'iM

It v

■

- I x.'tt

H t

•

tv-.H" i '.-A-:

•

Volume 155

Number 4080

THE COMMERCIAL & FINANCIAL CHRONICLE

Drastic Taxation May

Handicap Govt.Financing,
Says Vandenberg, Opposing Additional Burdens
The contention by Senator Vandenberg
(Republican) of Michigan
that too drastic
taxation
might seriously handicap Government

United States Of Mexico NSTA Members New On Discuss
(continued from page 2195)

Active

"Incidentally, according to cable
quotations

received

from

the

The

ton

was

Associated Press advices June 6

convinced, he told re~<^
porters, that there should be no
reduction in present individual
income
tax 'exemptions, s and
said he will fight for retention
of existing ones when the tax
bill, now before the House Ways
-

.f4

and

which

Means

Committee, reached

the Senate.

Senator

Vandenburg,

in¬

fluential member of the Senate
Finance Committee, said he be¬
lieved
Congress should place

primary

emphasis

not

the

amount of

new

taxes that could

but

raised

said:

ent effort with respect to taxes.
All that they ask is that the bur¬
den be distributed as fairly as

possible."

'Gas' Rationing In East
Revised—Basic Rate Up
Motorists in the East Coast

where

way

business

suf¬

have

would

ficient money to invest in gov¬
ernment bonds.
"It

said,

is far

"for

tional

one

out

ernment

funds

to pre¬

which

the

re¬

There
cards

will

Administra¬
June

"X"

no ! more

permitting unlimited pur¬
gasoline. Further, trucks

chases of
ana

buses will have to have

books, too, although there is

cou¬

the Lon¬

gov¬

Motorists

who

will

seek

safely borrow the tional rations to drive
close the gap in the
will have to show that

pro¬

placing

made

burden of taxation

too
on

great

the Amer¬

every

addi¬
work

they have

effort to form

car

club of at least four members who

Baltimore, Maryland: William
Brown, Mackubin, Legg & Co.;
P. Chambers,
Mackubin,

was

due

Robert

not at
Mexico's

declaration

around
the
1st Legg &
Co.; Alan F. Daneker;
Quite to the con¬ Bernard E. Eberwein, Alex. Brown
trary, all of the above tabulated & Sons; Malcolm G. Keech, Mer¬
Mexican issues since April,
1941, cantile Trust Co.; David G. Mc¬
have been selling in the London
intosh,
Alex.
Brown
&
Sons;
market at practically all times
ap¬ Charles A. O'Connor, Alex. Brown
war

this month.

proximately 1 to 2% points higher &
than

the

New

York

market,

Sons;

Colonial

Wm.

Roberts, Jr.,
&
Share
Corp.;
White, W. W. Lanahan

Bond

which is easily ascertainable when

Norville E.

converting for

& Co.

comparative

pur¬

the London quotations into

poses

Boston, Mass.: William Lundy,
New York terms.
Employing the Draper, Sears & Co.; Russell Dean,
very
same
calculating methods Sears Corp.; Frank E. Voysey,
for comparative purposes for the Kidder,
Peabody & Co.; S. Amaperiod from May 1 to June 1,1942, zeen, Coffin & Burr, Inc.; Russell
would

show:

a) That

securities

can

1942 Mexi¬

May 1,
were

J. Potter, Arthur W. Wood &
Co.;
Paul Sughrue, W. A. Thorndike

average

of 1%

points higher priced in the
London—than in the New York

quotations for Mexican

Defense Transportation may
vide.

can

balance sheet."

The

Price

and

important," he no intention at the
present time
market;
to raise an addi¬ to curtail the
operation of these
b) That beginning May 1, 1942
vehicles except as the Office of
the

functioning economic

sources

announced

Exchange

sudden

two billion dollars

in taxes than it is for
serve

Office

pon

less

gasoline is being rationed

tioning cards expire next month,
the

that individuals

area

will find much tighter regulations
when their present temporary ra¬

Stock

all

economic
such

securities listed

can

don

keeping the
tion
machine functioning

and

further

Co.;

David

A. Haley, Paine,
Co.; William T. Skin¬
ner, Jr., Walter J. Connolly & Co.;
Edward Herlihy, Edward
Herlihy
& Co.; Joseph F. Robbins.
Webber &

Cleveland,
Ohio:
Russell
G.
steady Wardley, Maynard H. Murch &
and consistently
in the London Co.; Joseph Bainer, Maynard H.
market, the New York market Murch & Co.; Martin Long, First
not experiencing
quite the same Cleveland Corp.; Francis Patrick,
proportional price movement;
Paine, Webber & Co.; Dana F.
c) That the steady rise in prices Baxter, Hayden, Miller & Co.
throughout the month of May in
Detroit,
Mich.:
Kenneth
H.
the London market had
finally Owens, Van Grant & Co.
reached on June 1, 1942, a
Kansas City, Mo.: Laurence B.
price
basis which, compared with the Carroll,
Prescott, Wright, Snider
New York market on a
parity & Co.; John O. Bragg, H. O. Peet
ities

started

rise

secur¬

very

ride regularly to work with the
people, he said, would al¬
applicant.
most certainly be followed by
The flow-back of coupons from
complete cessation of private the
filling station to the supplier
bond
purchases and the gov¬ will
provide an audit control of
ernment would have to turn to
basis, showed an average of 2V2- & Co.; Francis G. Kulleck, Kulevery gallon of gasoline distrib¬
2% points higher prices in Lon¬ leck. Wheeler & Co.
the banks for its financing.
uted under rationing.
don than in New York.
The House Ways and Means
Minneapolis & St. Paul: Arthur
Joel Dean, OPA Fuel Rationing
In view of these
Committee has voted tentatively
comparisons H. Rand,
Jr.,
Woodard-Elwood
Administrator, on June 8 stated we are inclined
to lower individual income tax
to believe that Co.; John Howe,
Piper, Jaffray,
that East Coast motorists will
get the
steady appreciation of the Hopwood; William T. Howard, J.
exemptions from $1,500 to $1,- an
average basic ration of about
200
for
married
prices for Mexican securities in M. Dain & Co.
persons
and four
gallons per week, instead of the
London market was not en¬
Los Angeles: Milton C.
from $750 to $500 for single per¬
Brittain,
three gallons as at
present, under
sons.
tirely due to Mexico's war declar¬ Bateman, Eichler & Co.; Ted D.
the
permanent
program
which ation but
chiefly due to British Carlson, Crowell, Weedon & Co.;
Commenting on this decision, will go into effect shortly after
investors foreseeing a better fu¬ Pierce
R.
Garrett,
Mr. Vandenberg declared:
Cavanaugh,
July 1. Coupon books will suc¬
ture outlook for Mexico for the Morgan & Co.; Max L.
Hall, Dean,
"This is chiefly a device for ceed the "meal ticket" cards. The
reasons
outlined in your article Witter & Co.; J. Earle
Jardine, Jr.,
increasing further the burdens new plan will require coupons for of June
4, 1942, although Mexico's Wm. R. Staats
Co.; Elmer E.
on
present income taxpayers. all gasoline purchases. Only "A" war declaration
may have been Meyers, Mitchum, Tully & Co.
The low income groups would and "D" books will be issued at
New York,
ultimately of some influence in
N. Y.: Joseph F.
be better off under a sales tax time of registration, the "A" book
this respect."
Donadio, Strauss Bros.; Rakenius
than
under
lowered
exemp¬ containing 48 coupons, the basic
J.
Possiel, First Boston Corp.;
ration to which every passenger
tions."
James G. Fraser, Katz
Bros.; Rich¬
He said a comparable reduc¬ car owner is entitled, and the "D"
Post-War Rail Prospects
ard H.
Goodman, Cohu & Torrey.
tion in individual exemptions in books providing a basic ration for
In spite of the
generally ac¬
Philadelphia,
Pa.:
John
W.
the 1941 revenue bill had pro¬ motorcycles.
"B" and "C" books
cepted idea that the railroads, af¬
Wurts, C. S. Wurts & Co.; John
duced only $47,000,000 from 2,- will provide
supplementary ra¬ ter the
war, will be faced with F. Fant,
Kennedy & Co.; Henry
275,000 new taxpayers but had tions for passenger cars for voca¬ an intensified
competition from T. Harper, Jr.,
Reynolds & Co.;
extracted an additional $256,- tional,
Governmental
and
war
highway, waterway and airway Herbert H.
Blizzard, Herbert H.
000,000 from those who already purposes, in addition to that pro¬
routes, with the Government and Blizzard &
vided by the "A" book. "S-l" and
Co.; F. Edward Atkins,
were
paying income levies.
labor
unions
playing dominant Jr., Penington, Colket &
"S-2" books are to be issued to
Wisner;
roles in "putting the railroads out
Following Senator Vandenburg's
Henry D. Boenning, Jr., Boenning
assertions the statement was made trucks, busses and similar vehi¬ of
business," B. W. Pizzini & Co., & Co.; A. William
cles.
In addition, there will be
Battin, Burr &
on
June 7 by Representative A.
52
Broadway, New York City, Co., Inc.; Benjamin H.
"E" and "R" books for non-high¬
Lowry,
Willis Robertson
(Democrat) of
specialists
in
guaranteed
rail Laird &
Co.; William Gerstley,
way users, including boats.
stocks and bonds, states in their
Virginia, that the task of draft¬
The "A" books will contain six
2nd, Gerstley, Sunstein
&
Co.;
ing war-time legislation "was not
"Guaranteed Stock Quotations" of
Leonard
S.
pages of eight coupons each, every
Bailey,
Hemphill,
made easier by warnings to the
June 1 that "long experience leads
Noyes & Co.; Donald W. Darby, C.
page being good for 60 days. The
American people by distinguished
us
to view with a considerable
C. Collings & Co.; Richard H. Oi¬
total of these would provide an
members of the Senate Finance
degree of skepticism any opinion
estimated year's travel of 2,880
ler, Suplee, Yeatman & Co.; John
Committee of the undesirability
that appears to be
'popular' or of A. Milburn, Hecker & Co.; Carlos
of high taxation on certain tax- miles, figuring out topless than a
majority nature.
It has been M.
four gallons per week.
Cardeza, Penington, Colket &
The "B"
said that the so-called subsidized
paying groups." According to the
books
will
have
two
Wisner; Chas. E. Halcomb, First
pages
of
J Associated Press, Mr. Robertson
competition against the railroads Boston
Corp.; Henry H. Patton,
eight coupons each, with expira¬
mentioned no names in dictating
had its roots in past eras of
'pub¬ Henry H. Patton & Co.; John B.,
tion date to be determined. Each
this statement, but the reference
lic be damned' > attitude on the
"C" book will be tailored to fit
Swann, Jr., Lilley & Co.; Joseph
obviously was to Senator Vanden¬
part of some of the carriers. Now B.
the needs of the persons receiv¬
Smith, Newburger & Hano.
we
find that the railroads have
berg.
St. Louis, Mo.: Edward E. Havering it, and will contain 96 cou¬
# From
the
Associated ' Press
not only given outstandim*
per¬ stick, Jr., G. H. Walker & Co.;
pons.
However, coupons will be
^Washington advices June 7, we removed from the "C" book to formance as part of the war ef¬ Frank E.
Pelton, Jr., C. J. Devine
I also quote:
fort but also have been called
& Co.; Oscar W. Rexford, First
provide
the
exact
mileage re¬
Rep. Robertson, a member of
upon to handle a vast amount of
Boston Corp.; Earl Essert, Semple,
quired. The "S" books will pro¬
the
House
Ways and Means
freight that formerly was moved Jacobs &
vide
sufficient gasoline for the
Co., Inc.; C. T. Ayers,,
t Committee, which is drafting tax
by competitive means. On top of
needs of applicants for a fourTaussig, Day & Co.; A. F. Stark,
that the public, denied the free
legislation, declared that "when month
Edward D. Jones & Co.; Edward
period.
use of the
Secretary Morgenthau said last
private car, has had to
Stegman.
week that $8,700,000,000 was the
fall back upon the railroads for
The Association will appreciate
Herbert Dewes In Army
least in new revenue that should
even relatively short distances of
other members called for service
be raised at this time, he stated
Herbert Dewes, for the past 15 travel. This we believe is a les¬
a fundamental truth with which years manager of the stock brok¬
son
that neither the public nor notifying the National Secretary,
Bert Ludington, Watling, Lerchen
all economists agree."
erage business of Alexander Eise- the Government will soon forget.
& Co., Detroit, Mich.
<
"The members of the Ways manri & Co., 90 Broad Street, New The railroads,. as the most eco¬
and
Means
Committee,"
he York City, and Vice President of nomical common-carrier service,
;
added, "are under no delusions Eisemann Industrial Corporation, seem assured of a dominant place
concerning the unpopularity of who is said never to have taken in a national transportation Defaulted Rails Interesting
high taxes, but we see no escape a vacation during his association policy."
'
B. S. Lichtenstein & Co., 99 Wall
*;
from high taxation as part of with the firm, has now gone into
Copies of "Guaranteed Stock Street, New York City, have pre¬
ican

Incorporating
Y. Exchange Firms

Military Duty

National

Security Traders
same
source, for the very same Association
report that the fol¬
coupled,on June 6 with an indication, as to his con¬ securities as per May 11, May 27, lowing of its members are
now
cern that levies in the pending new revenue bill
might be too high and May 29, it would appear as if on active duty in the armed forces
on both individuals arid business.
This is learned from Washing¬ the rise in the prices for Mexi¬ of the United States:

financing

•

2205

The

proposal to permit: .incor¬
poration of members of the New
York Stock

Exchange and to ad¬
Exchange membership out¬
incorporated firms, which has

mit to

side

been under informal

the

Governors

will

come

discussiop by
Exchange,

the

for definite action

shortly, it is understood^ with the
presentation to the Governors of

proposed amendment which it is
hoped will be approved for sub¬
mission to the members.'1i
There has been a
growing senti¬
ment in favor of
incorporation and
it

felt

that

of the large

many

outside firms

now

the

under¬

writing and distributing business,
are
incorporated, might
wish to join the
Exchange M-^he
which

proposed amendment is adopted.

The proposed amendment would
provide for incorporation of mem¬
ber

firms, but with rigid restric¬

tions placed on the sale of
stock,
so
that large customers
of the
firms would not be permitted to

buy stock thereby effecting what
might be considered a rebate;.on
their security transactions.
..All
applicants to purchase stock in the
incorporated firms would be sub¬
ject to the rigid requirements'ririw
in

effect

for

applications.^ for

partnerships.
The matter, it is
understood, will
be taken up with the Securities
and

Exchange

but since

Commission;''also,

number of out-of-town

exchanges permit corporations to
hold membership, it is believed
that, the SEC would not object to
this in the
Stock

of the New York

case

Exchange if the plan

sented

offers

guards.
Stock

reasonable

pre¬

safe¬

It is understood that the

Exchange

have

some

houses

would
like* to
the large outside

members

Pittsburgh Bond Stub
PITTSBURGH, PA.—The''Bond
Club of Pittsburgh announces that

the Club's annual
will

the

sacrifices

this

war.

required to win

the United States Army, the firm

Quotations," which contains

fur¬

pared for distribution

discussion

1,
announces.
The members of the ther discussion of the post-war
entitled, "The Case for a Non Re"Speaking only for myself, I firm and other associates of Mr. outlook for rails and also gives organization Defaulted Rail Bond."
firmly believe that the Ameri- Dewes gave a dinner in his honor quotations on all guaranteed rail Copies of this
interesting discus¬
can people will
gladly make any at the Cafe Havana Madrid on issues, may be had from B. W. sion may be had
upon request
1
necessary sacrifices in the pres- the eve of his departure for camp. Pizzini & Co. upon request.
from the firm.
";'%

summer

outing

Friday, June 26,
the Long Vue Club.
OM

Features of the day will be

golf,

charge of Eugene H. Lear, Reed,
& Co., with special
awkrds;
La Boccie, under the direction of
Joseph Buffington, with prizes for
Lear

the

winners; trap shooting, in
charge of F. J. McGuinness, Chap¬
lin & Co.—$1.50 for round of
25,
skeet-shooting available in case of
rain—with prizes to the
and

winners,

swimming.

Dinner

will

7:15.

charge
for
members
in
good
standing,
guests,
$3.00.
Those
planning to attend should com¬
municate with Ray Taylor, Chair¬
of the Ticket Committee.

man

Bodell, Peoples Savings-

Trust Co., is Chairman of the Out*
ing Committee.
**, v
j

Oil Royalties Attractive
Oil royalties offer

interesting

and

particularly timely invest¬
ment; according to Tellier & Co!,
52
Broadway, New York City,
members of the

Easterp-jQil Roy¬

alty Dealers Association, since oil
is vital for the successful
opera¬
tion of modern, mechanized-war*

fare and

new uses

for oil

are

corir

stantly being developed by modr
ern
research methods;
vihc;l|iding
the manufacture of synthetic rub¬
In
addition, according to

ber.

Tellier &

•

held

Company, returns from

oil

royalties
are
based
upon
production of oil, rather
than on net profits as in the case
of preferred and common
stocks,
gross

and also because this

vestment carries
come

type of in¬
substantial in¬

tax deduction

privilege. An

interesting list of current offer¬
ings of oil royalties
the Securities and

filed with

Exchange Com¬

mission has been prepared by Tel¬
lier &

Co., from whom copies of

the list may be had upon request
—ask for Schedule "A."

«*•">

:;'

620

Address—No.

Following is

registration state*

list of issues whose

These issues

filed less than twenty days ago.

ments were

Ten

St.

Pryor

Atlanta, Ga.
Business—Manufacturing

and

ing bakery products in southern
Underwriter—None named

grouped according to the dates on which the registration statements willin normal course become effective, that
is twenty daysafter fHiiig except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern Standard Time as per rule 930(b).
Offerings will rarely be made before the day follow~
are

distribut¬

states

,.7

■

preferred Stocki plus $1.50 (equal
quarterly
dividend
payable
March 1, 1942, on one share outstanding
6%preferred
stock), plus an unstated
to

(3-28-41)

Proposed offering as amended Dec. 10.
9,000 shares at $54.25 per share
Amendment filed May 29, 1942, to defer
date

Aircraft

COOPERATIVE WHOLESALE,

EASTERN
INC.

common

details

•

Cooperative Wholesale, Inc., filed
registration statement with the SEC for
$150,000 4%
registered debenture bonds
maturing July 1 of each year from 1944
to, 1956, inclusive (exclusive of 1950). No
more
than $30,000 principal amount of
said bonds shall mature in any one year
Address—135 Kent Ave., Brooklyn, N. Y.
Business—Wholesale dealer in groceries

only stock of the company authorized or
outstanding. The proposed extension agree¬
ment provides that it is tab

of voting trust
representing at
least 33l/3% of the total outstanding stock
of the corporation enter into the extension
agreement, and even if so made effective,
the voting trustees may cancel the exten¬
sion agreement under certain conditions
Registration Statement No 2-5005. Form
only if .the holders
certificates and of stock

aging
Underwriting—No underwriter named
Offering—The securities are being sold
by the Cooperative directly to its stock¬
holders
and
friends
interested
in the

F-l.

cooperative movement without the inter¬
position of any underwriter, dealer, broker
salesman, at 100.
No commission will
be
paid to anyone in conjunction with
SUCH fiftl©
••••
Proceeds—Will be used to repay certain

Business

2-5002. Form

participation

management type:
Offering—Aggregate
offering

restricted

price is
70,000 shares at $12.76
of May 12, 1942

$893,200 based on

Proceeds—For investment

Registration Statement No. 2-5001. Form
(5-27-42)

C-l.

registration

Co.

filed

with

the

SEC

for

$2,200,000

manufacturer

Business—Steel

& Sons,
Ltd., are

H.
Rollins
Pistell Wright & Co.,

Underwriting—E.
Inc.,

and

principal underwriters. Other underwriters
are to be named by amendment

offering

Offering—The

will

price

by amfndment
Proceeds—Payment of bank

loan

Fund,

paid

Form

for

debentures

each

basis

$50

cumulative preferred stock
offer
on

ing

will

expire

($5 par). Such
close of business

the

August 17, 1942. Stockholders accept¬
such offer will be entitled to receive

interest

the

debentures

received

change from May 1,

ex¬

1942
<
Underwriting—Company has entered into
an agreement with Floyd D. Cerf Co., Chi¬
cago, 111., principal underwriter, to super¬
handle

vise

and

the

approximate

$350,000;
the

May

the

exchange offer to
principal
amount
of
sell for the account of

at 100 plus accrued interest

company,

from
of

and

1942,

(debentures,

additional $150,000
together
with
any

debentures not taken by the holders of the
8 %

for

cumulative preferred stock in exchange
their shares.
There is no firm com¬

mitment

purchase

Grubbs,

tures.

Scott

any

Co.,

the

deben¬

Pittsburgh,

Pa., Is 'co-underwriter
Proceeds—The
ceived
the
the

the

gross

proceeds
from

company

the

re¬

sale

$150,000 debentures will be applied to
payment of an equal amount of cur¬

rent indebtedness

Registration Statement No. 2-5004. Form
A-2.

(5-29-42)

THURSDAY, JUNE 25
HOTEL BARBIZON,
B.

Lawrence

Elliman

for

SEC

5,305 V2

Hotel Barbizon, Inc.
Address

—

Solis-Cohen,

phia,

Pa.

stock

:7777ft; 77^

Wolf, Block,
Schorr &
Packard Building,
Philadel¬

address

63rd St., New York City
.
To Extend Voting Trust

140

East

present

50,000 shares of the proposed new
preferred plus the shares not subscribed for
by present preferred stockholders. Offering
chase

will

public

to the
amendment

price

supplied

used to
provide for redemption as of Oct. 2, 1942,
of all the outstanding 5% cumulative pre¬
ferred stock of the company at $105 per
share plus accrued dividends which will
require approximately $4,250,000 and the
balance of such net proceeds will be used
to increase the working capital of the com¬
pany which will be applied approximately
as
follows:
$2,000,000 to increase inven¬
tories, approximately $400,000 for additions
and improvements to property and equip¬
ment, and the remainder of such addition
to the working capital of the company to
increase cash.
The redemption of the 5%
cumulative preferred will be accomplished
substantially concurrently with the issue of
the new preferred stock
Registration Statement No. 2-5008. Form
Proceeds—Net

proceeds

will

Deb.

due April 16
1961; to pur¬
guaranteed
serial

6s,

$4,750,700

1952;
chase

$50,000,000 Deb.
$3,750,000
4%
due

Gas

Co.

Co.,

thereof; and

the holders
capital

$3,402,090

Gas

guaranteed

Fuel

United

from

subsidiary,

Fuel

Ohio

$3,750,000

and
of

notes

make

1942-46

subsidiary,

5s,

contributor

Cinn., Newport St Covington Ry Co. tc
enable that Company to redeem its out¬
to

OF OFFERING

DATES

$3,303,000 1st Si Ret. 6s. 1947
Registration Statement No. 2-4736. Forn
(4-10-41)

A-2.

Amendment filed May

23, 1942, to defer

date
POWER

FLORIDA

registered
Mortgage

Light

Co.
First

$45,000,000

1, 1971; $10,000,000 Sink¬
Debentures, due Oct. 1, 1956;

140.000

Stock,

and

Interest

Par.

preferred

Preferred

rates

and

Debentures,

the

Cumulative

$100

Bonds
rate

CO.

due Oct.

Fund

and

LIGHT

Power

SEC

the

dividend

stock, will

sup¬

plied by amendment
S.

Address—<-25

Second

Miami,

Ave.,

Fla.

Business—This

(Electric

Light

Power

American
Bond & Shar#

subsidiary

Is an operating public utility en¬
gaged principally in generating, transmit¬
ting, distributing and selling electric en¬
ergy
(also manufacture and sale of gas),
serving most of the territory along the
east coast of Florida
(with exception of
the Jacksonville area), and other portions

System)

Florida

Public

SEC's

the

Holding Com¬

Utility

Act.
Names of underwriters and
to public, will be supplied by poetamendment to registration state¬

pany

price

below a list of Isiuei
whose registration statements were filed
days

offering

dates

are

have

but whose
been deter¬

ago,

not

unknown

us.

will

Proceeds

applied

follows:

$53,170,000 to redeem at 102Vi, the $52,000,000 of company's First Mortgage 5s ol
1954; $15,693,370 to redeem at $110 pel
share,
the
142,667 shares of company's

stock,

preferred

tails

amendment

Further de¬

par.

supplied

post-effectivs

Registration Statement No. 2-4845.
<9-17-411.

A2.

Amendment filed May 22,

Form
.

; 7 )

1942, to defer

date

effective

BAKERIES
Bakeries

Class

registered
common

1B.00C

stock

Corp.,

of certain selling
ft/,''7*7
amended: 23,100
105,756 shares b)

Gillham

Mining Co., Inc., filed a regis¬
with the SEC for 5,000

statement
common

Address—-30

no par value
La Salle St., Chicago;

stock,
No.

HI.

Business—Engaged
in
the
mining of
antimony ore in Mineral Township, Sevier

County, Arkansas
Underwriting and ; Offering—The
shares

common

stock

will

-~
5,000

sold

public at $5 per share; no underwrit¬
involved.
r'ftf-ftft
•:.
will be used for corporate pur¬
including

developing

further

and

(2-12-42)

Registration
June

Cleveland)#:

'/ ft1'•'./"7ft

RAPID TRANSIT CO., LTD*
Rapid Transit Co., Ltd., has
registration statement with the
SEC for 75,000 shares of 6%
cumulative
convertible preferred stock, $10 par; and
common
stock, $10 • par,
for issuance on conversion

shares
reserved

latter

stock rftft;:";'
Address—1140 Alspai St., Honolulu, Ha¬
the preferred

vft'."/

waii

is a public utility
engaged in providing urban transportation
service to the city of Honolulu, rendered
by trolley coaches and gasoline buses
Underwriting—None
ft' '
7
Offering—The preferred stock is offered
to company's common stockholders of rec¬
ord April 30, 1942, for subscription at $10
per share, on the basis of' three shares of
preferred stock for each five shares of
common
stock, to be evidenced by trans¬
ferable
warrants
which
expire May 29,
1942.
Such of the preferred
stock not
subscribed to on or before May 29, 1942,
Business—Company

or before June
30, 1942,
by the company, subject
sale, either at private or
public sale, at not less than $10 per share
Proceeds will be applied to reduction of
outstanding bank loans, aggregating $1,-

not

will

sold

retained

issue

and

650,000

Registration Statement No. 2-4973.
(3-30-42)

S-2

HUNTER

Form

..7

MANUFACTURING CO.
filed registra¬

effective

p.m.,

EWT

1941

Watch

Co.

filed

registration

oreferred «*nck,
Address—Lancaster, Pa.

cumulative

$100

par

with the SEC for 109,560
stock, of 25 cents par

statement

tion

common

Address—Croydon, Pa.
Business—During two years ended

Sept.

operations of company consisted
and sale of Rex rail¬
signal lights and the manufacture and

the

sale,
tions.
been

manufacture

experimental basis, of muni¬
that date, the company has
primarily engaged in the munitions

on an
Since

business

'■

•

•..

Underwriters—Nelson Douglass ft . CO.,
Angeles, Cal., and Barrett.Herrick ft
Co., Inc., New York, each have agreed to
underwrite 46,500 shares of the common
stock registered, or a total of 93,000 shares
Offering—The 109,560 shares registered
Will * be ofTeted to the public at $4 per
Los

underwriting commission is 80
93,000 shares are un¬
issued and are to be offered to the public
for the account of the company; the re¬
maining
16,560 shares registered are to
be purchased by
the underwriters, under
purchase option, from certain stockholders,
and will be publicly offered
■
- •*
Proceeds will be used to purchase or re¬
deem all the outstanding 36,000 shares of
6 %
cumulative preferred stock, $5 par
value, and for other corporate purposes
Registration Statement No. 2-4990. Form
S-2.

the

per

share.

(4-23-42).

.■• ■.

Amendment filed June
effective date

3, 1942, to defer

CORP.
; l
Corp. filed a registra¬
with the SEC for 39,912
shares class A stock, $25 par; and 25,232
shares common stock, $1 par
Address—33 N. La Salle St., Chicago, 111.
Business—Primary function of company
is to loan money to enterprises whose debt
and/or
capital structures are being ad¬
INTERIM

tion

FINANCE

Finance

statement

justed or reorganized by
subsidiary, H. M. Preston

the

one

purchase

company,

75,000

•

working capital
.

Registration Statement No. 2-4997. Form
(5-8-42)

Amendment filed
effective
MILLER

TOOL

May 25, 1942, to defer

date

MFG.

CO.

Miller

Tool
&
Manufacturing Co. has
registration statement with ths
for 92,792 shares of common stock,

filed

SEC

$1 par value

and

manufacture

sale

service

th«

tools

for

;by; the automotive industry?
Underwriters—Baker,
Simonds
named

the

principal

in
: :

u$o
is

I-

■ ■■

Address—Detroit, Mich, 7
Buslhess-r-Company is engaged

Co.,

underwriter

Offering—24,875 shares of

stock

common

will -be sold

to the public for the account
thei company;
the remaining 67,917
shares
registered are already issued and

outstanding,

will be sold

and

pub¬

the

selling stock¬
public offering price is $4.20
per share
.:;y, 1'■
.' ,
Proceeds will be used for the purchase
of machinery and equipment and for work¬
ing capital
■■
•
The

holders.

Registration Statement No. 2-4920. Forfa
<12-26-41

S2.

Cleveland)

Amendment

its wholly-own^d
A second:

& Co.

•

filed May 22,

effective date

Withdrawal

1942, to defer
"

request filed June 8,
PUBLIC

SOUTHWESTERN
Southwestern

Public

1942

SERVICE

Service

CO.

filed

Co.

statement with the SEC for:
$18,500,000 of first mortgage and collateral
trust bonds, due Feb. 1, 1972; $5,500,000
serial notes, due in equal annual amounts
from Nov.
1, 1943, to Nov. 1, 1953, in¬
clusive; and 85,000 shares of 6% cumula¬
tive preferred stock, $100 par value
Address—Dallas, Texas
Business—This
company
and its sub¬
sidiaries are
engaged principally in the
registration

generation, transmission, distribution and
sale
of
electricity, serving certain com¬
munities in Texas, New Mexico, Oklahoma,
Louisiana, Arkansas and Arizona.
Under
a
plan of integration and simplification
proposed to be consummated under section
11
of
the Holding Company Act simul¬
taneously with the consummation of the
present proposed financing, the company
proposes to effectuate the following trans¬
actions: Merger of Community Power &
Light Co. and General Public Utilities, Inc.
(the two present parent companies of the
company)
into the company; liquidation

Mexico

Texas-New

Utilities

partial

and

Co.;

re¬

liquidation

purchase of Pah-

Service Co.;

Public

Gulf

1940,

30,

carry

stock

stock registered, 25,000 shares' are
issuance upon exercise of the

capitalization

value

share.

per

will

holder

lic for the account of certain

Interim

Registration Statement No. 2-4964. Form
S-3

•

Honolulu

75,000

the

purposes *
S-2.

De¬

HONOLULU

debentures

common

Proceeds will be used for

Amendment filed June <4, 1942, to defer

filed

the public at $10 per share

effective date

cents

statement with SEC for 39,382 shares

CO.

Co.

par

share;

GILLHAM MINING CO., INC.
tration

Hamilton

American

b(/o

warrants, and 50,000 shares will be offered

offering price Is

A2.: 111-19-41

road

voting

AMERICAN

account

offering

ment

HAMILTON WATCH CO.

public for

Proposed

of-

exploring of properties now owned by the

present

$10

vft, \
7:.:%.-7';.:
Offering—23,100 shares are unissued and
are
to
be offered
to the public for th«
account of the company; remaining 117,300
shares are outstanding and are to be sold
stockholders V' -ft ft

registration

$500,000

reserved for

troit,. Mich.

effective

company

twenty

common

Hunter Manufacturing Co.

imermg—The securi¬
ties registered are to be sold by company
under the competitive bidding Rule U-50
Underwriting ana

poses,

UNDETERMINED
We

Higbie

Carlton

the

entitling

are
principal
underwriters
underwriters are Smith, Hague Si

and

Inc.,

Co.

filed
for

...

Other

Co.

SEC

due

Mich.
Business—Manufactures and sells pistor

Co.,

Steel

with

■

warrant

rings and expanders
Underwriters—Schroder,
Rockefeller

Star

amount

par value
I Address—Hastings,

standing

Proceeds

Agreement—As

1952;

the

(6-9-42)

mined

trust agreement is to
expire, July 24, 1942, the voting trustees
feel that an opportunity should be given
to the holders of voting trust certificates

the

they

preferred stock, on a share for share basis,
a
total of 40,000 shares of the new pre¬
ferred stock.
The underwriters will pur¬

c/o

Corporation

amounts

A-2.

al voting trus¬

common

com¬

•
v. --*7Offering—Both Issues will be publlclj
at prices to filed by amendment
Proceeds—To redeem $50,000,000 Deb 5&

pany

ing

tees filed a registration statement with the

N. Y. C,
Utility'" holding

Broadway,

offered

Florida

will purchase will be
furnished by amendment
'
Offering—Company
is offering to the
holders of its outstanding 5%
cumulative
the

*
!
filed

Public

Business—-Public

ing

INC.

SEC

r *''

working capital

1948; 1,000 warrents to
purchase common stock; and 75,000 shares
no par common stock...77 :
v-^,...; •
;
Address—Dallas, Texas * 1
Business—Company is engaged in the
manufacture of pig. iron and steel
Underwriting— No
underwriters
are
named in registration statement
Offering—The debentures will be offered
to the public at 100; each $500 principal

Manufacturing Co. registered
140,400 shares common stock

Hastings

the

STAR STEEL CO.

Lone

CO.

MANUFACTURING

HASTINGS

with

reduce

...

1942

29,

May

defer effective date

stock

Amendment filed May 23, 1942, to defer

LONE

$9.50 per shars
Proceeds to
company will be used for
general corporate purposes, including pur¬
chase of new equipment and for working
capital
' \
..
Registration Statement No. 2-4890. Form

bonds,

C. MURPHY CO.

the

ELECTRIC CORP,
Electric Corp. regis¬

Gas

all out¬

by
company,
certain^stockholders/ •,»«:.,v.

with

SUNDAY, JUNE 28

(12-30-41):

Amendment

tor

Columbia

effective

debentures

additions

Proceeds—For investment

with the SEC for $500,000

for

6, 1941

COLUMBIA GAg

G.
C.
Murphy Co. filed a registration
registration statement
6% sinking fund statement with SEC for 90,000 shares of
cumulative preferred stock, par $100 per
debentures, due May 1, 1957
The dividend rate will be supplied
Address—225 Ross St.,
Pittsburgh, Pa. share.
by amendment
Business—Company is at present time
Address—531 Fifth Avenue, McKeesport,
engaged in the operation of a chain of
Pa.
23 retail drug stores (including one oper¬
Business—The company operates a chain
ated by the company's wholly owned sub¬
sidiary), ten of which are located in Pitts¬ of 207 retail stores in 12 states and the
burgh, Pa., and suburbs.
The other 13 ?District of Columbia, selling a wide variety
of merchandise for cash and at unit prices
stores are located in Pennsylvania, West
ranging principally from 5 cents to $5, al¬
Virginia, Ohio and Maryland
though a limited number of articles are
Offering—If approved by stockholders at
sold at prices in excess of $5
special meeting to be held July 17, 1942,
Underwriting — Merrill
Lynch,
Pierce,
company
proposes to offer to holders of
its
8 %
cumulative
preferred
stock
the Fenner & Beane is the principal under¬
Names of other underwriters and
privilege to exchange their shares for the writer.

filed

Rand's

June

serial

Investors

Underwriting—Western

Registration Statement No. 2-5003. Form
(5-29-42)
PITTSBURGH

Wash.

company

Offering—Provides for periodic payments
to the sponsor at the rate of $10, $25, $50,
$100, or larger amounts in multiples of
$100, at regular intervals over a period of
approximately 15 years, or until the maxi¬
mum
payment called for by the plan has

A-2.

RAND'S,

used

redeem,

standing 6% preferred stock; balance for
expenditures in connection with construc¬
tion and equipment of plant additions
Registration Statement No. 2-4926. Forn

debentures due 1961

INC.

Registration Statement No. 2-5006.
C-l. (6-8-42)

furnished

will

and surplus
Registration Statement No. 2-4992. Form
A-l
(4-30-42 San Francisco)
Registration effective 1 p.m., EWT on

capital

notes

Inc., sponsor

been

per

used

will

1942, at $105 per share,

the right

class

effective date

statement

$28,000,000
serial
debentures, due
1942 to 1951. and $92,000,000 sinking fund

Address—Central Building, Seattle,

sinking fund debentures due 1952
Address—Coatesville, Pa.

;

tered

that will be issued

4%%

$22

Address—61

Business—Investment

•

Proceeds

March

debentures,

•

Underwriting—Paul H. Watson is named

Fund, Inc.

Investors

Western

Inc.,

Co.,

CO.
filed

Co.

principal underwriter; Don B. Wentworth
may be an underwriter
Offering—The common stock registered
will be offered to the public at a price

Form

(Washing¬
ton)
filed a registration statement with
SEC for an aggregate of $1,200,000 "Series
E" certificates.
Agreements will be issued
calling for maximum payments of $1,800,
$4,500, $9,000, $13,500, $18,000, and mul¬
tiples of $18,000.
Statement says i-t is im¬
possible to state the exact number of each

STEEL CO.
Steel

(Washington)

WEDNESDAY, JUNE 17
Lukens

FUND,

INVESTORS

WESTERN

Address—50 Congress St., Boston, Mass.
Business—Investment trust of fixed or

statement

insurance

Proceeds

Registration Statement No. 2-5007.
S-2. (6-8-42)

Form

INSURANCE

cipal underwriter;

1942, to defer

Insurance

financing

Registration Statement No. 2-4968. Form
K( 3:^lB-42
v
•

Philadelphia, is named prin¬
other underwriters will
supplied by amendment.

registration statement with the SEC for
29,659 shares common stock, $10 par value
Address—San Francisco, Calif.
Business—Engaged in the underwriting
of
fire, automobile and other forms of

sale

Union

intermediate

Proceeds will be used for

exchange offer,

such

each ~ uhlt

urlll b«the public, at a price to be
amendment.
Harriman Riplej

supplied by

r:-

UNION

California

Underwriting—Baker Simonds & Co.
Offering—Of total 52,238 shares will be
offered by the company and 145,775 shares
by certain stockholders.
Offering price to
the public will be $2 per share
Proceeds—Company
will
use
proceeds
from sale of stock for working capital

CUSTODIAN FUNDS, INC.
Inc., filed a
registration statement with the SEC for
70,000 Series "K-l" full certificates of

share as

and

Manufacturing

date

CALIFORNIA

service tools

auto

Keystone Custodian Funds,

LUKENS

—

filed May 26,

Amendment

Address—Detroit, Mich.

KEYSTONE

per

Co. filed

offered

(3-30-42)

effective

capital

working

Registration Statement No.
S-2..(5-27-42)

S-2

MANUFACTURING CO.

& Manufacturing

Tool

Miller

private loans and also to reduce certain
accounts payable now outstanding for cur¬
rent merchandise, the balance to be used
for

Registration Statement No. 2-4975.

primary
or

number of common shares to be included io

price ol

reserved Tor

by company, presumably in con¬
formity with military censorship policy

registration statement with the SEC for
198,013 shares of common stock, par value

$1 par.
Further,
financing, including de¬

filed

SATURDAY, JUNE 27
&

57,412

application of pro¬
ceeds, underwriters, if any, etc., are to be
supplied
by
amendment
to registration
statement.
SEC withheld much of material

(6-6-42)

MILLER TOOL

for

distribution,

tails

tive

other
pack¬

products, including,
among
related activities, warehousing and
allied

the

all common stock, which is

5,305 V2,

Eastern

registra-i

its

reserves

company

preferred

preferred), for each share of out¬
standing 6% preferred stock. • Exchange
offer expires Jan. 22, 1942.
Any shares ol
4,/2% "preferred not issued Under the ex¬
change, offer, plus the 6,328 shares nol
the

1942

stock,

the

Corp. filed
the SEC

with

statement

The

voting trust agreement.

the

the public, of¬

between

effective

proposed extension is for five years from
July 24, 1942.
Total number of shares of
stock of Hotel Barbizon, Inc., outstanding

extend

(difference

amount

Eellanca

current

fering price of one share AV* %
stock and $105, the redemption

Withdrawal request filed June 6,

"interim"

underwriting commission is $8 per unit !
Offering—The class A -stock -Is to be
sold in units of 4 shares, at a price of
$110 per unit; With at least the first 900
units,- there will be included with each
unit 4 shares of common stock; thereafter

preferred stock on basis of one share

4'/2%

1941,

tion

used

women

BELLANCA AIRCRAFT CORP.

MONDAY, JUNE 15

for

•

Registration Statement No. 2-4714. Forn
A-2.

not

vide

with funds
function, to pro¬

money,

•

company,

sold

function is to io&tt

ftftft'yftft' to enterprises until the financial positions
of the borrower or, a change in general
Underwriting and Offering—Company li
making a conditional offer to holders of its uapital? markets' blietfthvenues^fbr'dohger*^
term borrowing from customary sources
32,054. shares of outsanding 6% preferred
Underwriter—H. M. Preston & Co., Chi¬
stock of the privilege of exchanging such
cago,
111,; - Is the sole underwriter* - "The
stock for 33,054 of the 39,382 shares of

Cushman, Jr., chairman of board
for whose account the stock

by L. A.

ary

Company

—

wrist watches

and

men

Offering—Stock will be offered to pub¬
at price to be filed by amendmentProceeds—All proceeds will be recelvec

will be

>,v.

•Thursday, June 11; 1942

manufactures and
sells various models of high grade
(17 to
23
jewel)
pocket and wrist watches foi
Business

Bldg.,

lic

.v:1""

:■••-.

■

ST:

Flotations;

Calendar of New Security

it*

FINANCIAL CHRONICLE

THE COMMERCIAL &

2206

•-,:1 ^7:f'-■VI'''1 *'■ •'Vi-V;"''T'-V-

7.7';,>'

■':Vi

handle Power &

ties

Light Co., Cimarron Utili¬
Guymon Gas Co.; and re¬

ahd

Co.

entire

the

funding

outstanding

debt

the

company

tion

the

transactions

itself.

Upon

funded
comple¬

involved

fore¬

going, it is expected that the company will
have
no
parent
Underwriting—Dillon, Read ft Co., of
New
York, is tne principal underwriter;
the

names

the

be supplied by

other

will

underwriters

amendment.

Offering—The bonds, serial notes and
6% preferred stock, will be sold' to the
public," at prices to be supplied by amend¬
ment

;•

:><.:

Proceeds from sale of the new

securities

the

company's general
funds and will be applied to effectuate' the
various financial transactions involved in
will

added

the plan of integration and simplification,
and the refinancing of the company's out¬

standing funded debt

Registration Statement No. 2-4981. Form
(3-31-42)

A-2.

Amendment filed
effective

May 25,

1942, to defer

date

STANDARD
Standard

AIRCRAFT
Aircraft

PRODUCTS, INC.
Products, Inc., filed a

registration statement with the SEC cov¬
ering $300,000 5V5i % convertible serial and
sinking fund debentures, due 1943-1947
Address—Dayton, Ohio
Business—Company

manufactures

develops aircraft products,

Offering—The
will

offered

maturities

other

change
cents

1943

for

33,586

the
will

etc.

and

;

•

maturity

($48,105)

public

100.

cumulative preferred

offered

($7.50
stock

The

ex¬

par)
on

40
par

for par
im?

1945,

basis as follows: debentures matur1944.
*62,000:
debentures
maturing

$62,000;

debentures

maturing

1946^

-•'i-i'S'' V;vV .li'i-V

•Volume 155

Number<4080

THE COMMERCIAL & FINANCIAL CHRONICLE

maturing /1947, National: City- Bank* of ;New ZYork,,parent But
»■
learnings bonds,' selling at
$65,895
of the former company, is the holder of
;.'/*/< *
discounts and with rising interest
Underwriting—The debentures aggregat¬ the remaining
17,000 * shares
registered.
ing $251,895 may be sold through under¬ The aggregate
of t the shares
registered coverage,-may
be a more truly
writer at 100.
R. N. 'Webster, President,'
represents 47.7% of the outstanding com¬
conservative purchase than highhas agreed to sell through underwriter the mon stock
of the company,
and will be
$190,537 debentures he has agreed to ex¬ Cffered- to5 the public,/ at a price ;tox be" grade, flow-yielding bonds which
change for his 25,405 shares of preferred supplied by amendment
can
only move significantly in
stock. GV Bfasheaxs & Go. is. named
'prin* T Proceeds will be-received,
■

cipal
an

underwriter.

by. the'.selling

Webster

may

ftockholders

underwriter;

//•-. /•>
Proceeds of $48,105 (1943 maturity) will
be used-for working capital '
- • >y,.*
r
Registration Statement No. 2-4988. Form
A-L

( Filed

San

Francisco" 4-20-42)

Amendment filed

Registration
Form

Statement'
( 12-29-41)

A2.

Amendment filed

;

No; '. 2-4923.

April 21, 1942, to defer

effective date

•

statement

owned by

are

•

with

the

from

the

receive the entire:

sale

the

are

prof

public of

pany, The North American Co.

the; underwriters,

"number

going

such

The namejs

and
such

the

common

-v •"

■ '
filed
;

Amendment
effective

'■

June

date,..

....

•'

•

Light.

Heat

gistered

25,000

stock

and

Power

$100

;-:/"

par

Address—4th

Main

Co.

common

8t.,

Ohio

Operating

—

company

TTnderwitter

mon

for

each

for

each

holders
for

one

5/94ths of

held

share basis,
to 5 new

ofcom¬

share held

receive

$5.32

stock¬
shares

$100,016 per

snare

Substantially all. outstanding stock Is held
by Columbia Gas & Electric Com,
Proceeds—To

mortgage

associated companies,

and

parent

current
debt and
bonds held bj

repay

$2,835,000.-first
construction

foi

aim

speaks
;

•

...

and

Semi-Specu¬

lative Bonds

grade and consequently re¬
sponsive in its price movements
to earnings rather than to
money

sues

improving

are

since

their status
earnings are/rising

gross,

under

the

effective

influence

Preferred

GAS

United
first
'

1942,

May 29,

to defer

CORPORATION

Gas

registered $75,000,000
collateral trust 3V*%

Corp.

and

mortgage

bonds due 1958
Address—2 Rector Street, New

York City

Business—Production and sale of natural

part of Electric Bond and Share Sys-

gas;
r

tem

'•:

•

Underwriters—None

investors,

will

whose

sold

will

names

be supplied by amendment, at 99.34%
,
Proceeds—To redeem $28,850,000 United
-

•

Public

Gas

Debentures

due

and to purchase from United Gas Pipe Line

•Co.,

$6,000,000

bonds

Service

1953; to pay 6% demand note of $25,925,000 to Electric Bond and Share; to repay
$2,000,000 open account debt to E. B. & S.;
of

1961.

due

its

1st

Balance

Coll.

will

used

war

dividends

$9,502,490 on companys $7
preferred stock
.v
r
-.
Registration 'Statement No. 2-4760, Form
...

;•

A-2

(5-15-41)

United

;

SEC

Corp.

Feb. 21,

been

unable

filed

amendment

with

1942, stating that It had
further

the

extend

pur-

chase

agreements

panics

covering

with

the

insurance

com-

proposed

private sale
$75,000,000
company's first mortgage and collateral trust 3Va% bonds, due 1959.
This

to such insurance companies of

of the
5

amendment states:

;
•

•

"These purchase agree-

ments expired On Feb. 16, 1942.
The corporation intends to continue negotiations
to the end that its bonds shall be either
cold

privately,

renewal

price.":

WEST

INDIES

pursuant
Cuban

CORP.

the

plan

Dominican

of reorganization of

Corp. and cer¬
tain of its subsidiaries, is
solely a hold¬
ing
company
owning
the/securities
of
everal operating subsidiaries engaged
prin-

cipally. in
sugar

•

Address—60 E.. 42nd. St., New York City
Business—Company, organized in 1932

SUGAR

1942, to defer

West Indies Sugar Corp. filed a
reglstration statement with the SEC for 453,691
shares of common stock, $1 par

J
i

and

the

Sugar

production
of
raw
cane
and blackstrap molasses
Republic and Cuba

invert

Dominican

Underwriters

will

named

amend-

ment

Offering—The

already

Cif.v
•

outstanding,

Companv

solution,

the

and

New

extent

registered
are

York.

owned

Inc..

436,691

Stocks

bonds.

There is

living

pared

Dividend

with

the

same

customary dif¬
ferential
between
the yields
of
these
two
media
and, if h:ghgrade bonds decline, high-grade
preferreds
likewise.

scarcely fail to do

can

Thus

Chairman James Lawrence Fly
the Defense Communications

Board, May 28 announced that the
Board

directed

public

the

closure

domestic

radio

circuits

tinental

of all

point-to-point

within

limits

the

con¬

United

States, effective midnight, June
30, 1942. Provision is made, how¬
ever, that upon proper showing
the

they

are

stocks

and

are

subject

the influences of

earnings and
taxes;
They have always been
recognized as containing a consid¬
erable element of speculation.

Common

/ "It. is scarcely necessary to/ say
that common stocks as a class are

individual issues.

the

usual
factors
which
influence
these- evidences of partnership in

business; there must be added

to¬

day increases in volume of busi¬
ness

fects

the

one

hand and the ef¬

paid in

1942,

not

paid

'>/./•"/

...

are

by
Dis-

shares;

"Therefore,
are

it seems that we
all speculators in some
degree

stocks

'^Including
dends

tNo

stocks

first

basis

for

portfolio.

ever

circuits
a

which

months

paid
of

Food Re¬

channel of informa¬

domestic

food

Warfare,

programs formulated for the

Eighty

stations

operated

cerned are:

R. C. A.

Communica¬

tions,

Their

total

traffic

considered

quite small in comparison with all
domestic message volume.
man

Fly

wire

line

stated

that

commenting

year.

this

Bullock

communications

ties remain

from

which

the

DCB

should

particular circuit

permit any
circuits to re¬

business, it will follow

matter of

that

course

paid

year-end

'extras.'

most

investors

would

and

dicted in January and one won¬
ders whether the
dividend reduc¬
tions for the year as a wliole
may

not

less than, anticipated.
considerable

in the port¬
folio of First Mutual Trust
Fund.
As of May 1,
1942, cash amounted
to

26.07%,

bonds.

19.04%,

Division

the

Office

the State

Never¬

pre¬

Navy

The Division

Depart¬

Administration,

have

and

Civilian

Industry

the Board of Economic Warfare

many cor-

years

in any case.

War

The

will see many further re¬
visions in dividend
payments as

recent

derived.

are

Operations of the WPB will re¬
port on available stocks of non¬
food materials, such as cotton
and rubber, which are processed
from agricultural materials. And

years

the

mate
our

Mr.

Lend-Lease

together

with

Department, will esti¬
food

requirements of

allies.
Nelson

his

ministration will

continue

the DCB order

under the control of the

Navy De¬

partment.

Gen. Ay res To Retire
Brig.

Gen.

Chief of
of

the

retired
the

Leonard

the

War

Service

Statistics

Department, will be

June 30 because of age,

announced
on
June 8. Gen. Ayres, who has been
on leave as Vice President of the

1940,

duties

Trust Co. since

ad¬

return

Oct. 7,

his

sult of

bank

July 6.

Gen. Ayres' retirement is

rationing.

re¬

law passed in

1940, going
7 that the committee's first big into effect this year, requiring all
colonels reaching the age of 60
job will be to determine the quan- j
and all brigadier generals reach¬
tity of various .types of food
needed to supply military, civilian, ing 62 by June 30, 1942, to be re¬
Chairman Wickard said

June

lend-lease and other demands and

tired.

Gen.

and fecting production and allocation.

United

Ayres'
career
in
States Army, active

reserve,

has extended

sharply Bethlehem Steel, Celanese
Corp.,
more
Chicago Pneumatic Tool, Douglas,

Ayres,

Department

Cleveland

emphasized

order that the Office of Price Ad¬

minister

Not affected by

of today are the coastal and shipto-shore radio stations, which are

decisions af¬

pqctfolio included Air Reduction,

they will

effectively censored.
Routine
precautionary measures, including
monitoring by the FCC Radio In¬
telligence Division, will continue

out

foregoing experience,
be
emphasized, covers

only the first five months of 1942.
It is likely that the balance of the

porations

users

sidered essential for home civil¬
ian consumption.

"The

must

facili¬

available to all

of these domestic radio circuits.

main in

materials

Supply of the WPB will draw
up
lists of food supplies con¬

rec¬

points

Chair¬

adequate

food.

comparison.

Calvin

eleven companies are affected by
the order. The chief carriers con¬

The

divi¬

either

re¬

delay in

ments will report on their
spe¬
cial war-time requirements for

100

stocks
today, voluntarily or involuntar¬
54.89%
of
the
ily and whether we act or do portfolio. As of June 1, 81.72%
nothing. This is not meant to be was invested in
stocks, 13.63% in
an" alarming statement.
The line
discount bonds, and 4.65% in cash
between
intelligent
speculation
or
receivables.
Additions to the
and investment has never been
it

as a

progress

foods

Total

common

sharply drawn nor has
been capable / of being

these

transmission not necessarily found
in the case of domestic wire cir¬
cuits."

sion

Special!

scarcities, price ceilings
During
May
and mounting corporate taxes on
changes were made
.

necessary

mained, would involve

cultural

rea¬

man¬

power and funds.
In any event,
the censorship which would be

importation of foods and agri¬

the other.

available

If upon recommendation of the
Federal Communications Commis¬

always speculative although with theless, the figures to date are
in degree as,be¬ probably
considerably better than

tween

the Board of Economic

compared with 1941, especially in
the final quarter when

Stocks

limits

production and, after consulting
Department and

1941

indi¬

classification

the

with the State

Dividends

nearly
to

the

last

1941

that:

the

re¬

assem¬

been deemed insoluble within

sonable

ord,

common

share*-.
194J

Dividends larger in 1942 than in 1941
Dividends omitted in 1942, paid in

speculation in interest rates.
Lower grade preferreds fall more
into

than in

tion/The Department of Agri¬
culture will report' regularly on

Stocks
rate per

same

and studied

will act

follows:

year are as

food

been

ernment agency concerned with
the production and use of food

com¬

period

have

reaching its decisions each gov¬

Investment Company Briefs

afore-

agreements or otherwise, or 'offered
to the public as circumstances shall dictate
In order to obtain the pest possible
Amendment filed May 22,

)

the

said

;(• effective date"'

Inc., Mackay Radio and
Co., Tropical
Radio
quirements Committee will, Telegraph
Co.,
Globe Wireless,
broadly speaking, make a final Telegraph
decision on how all foods shall Ltd., Press Wireless, Inc.
(press
Radiomarine
be produced and allocated in the only),
Corp
of
America, Central Radio Telegraph
light of their availability and of
Co., Michigan Wireless Telegraph
the
material
and
equipment
Co., Wabash Radio Corp., Pere
necessary to
produce, process,
Marquette Radio Corp. and the
transport and store them.
Radio
Telegraph
Co.
To guide the Committee in Western
bled

/<• great variation

Gas

and

quirements

Calvin Bullock reports that div¬
idends paid or declared

Dividends at

"High-grade preferreds may be
lumped roughly with high-grade

part
-

return

taxes

statement explained:
all of the
facts, pro¬

grams and estimates

No. of

to reimburse treasury for capital expenditures and possibly to pay accumulated

Division of the WPB.

today's
opportunities
are
ample. But their realization
requires experienced investment
management, alert to new and

rect

Terms—Bonds

Offering

institutional

•

liberal

Dividends smaller

date

UNITED

have

increased

economy and bond interest comes

(3-30-40)

Amendment filed

must

meet

folio

Registration Statement No. 2-4379. Form
A-2

vital

during
naturally carries an ele¬
the first five months of 1942 on
ment of speculation. Under pres¬
the tQO stocks Jield in
the«.pbrfent circumstances many such is¬

rates,

before income taxes.

costs

meantime.

dollar value of the investment;

ment
will

the

"Any bond,? not of strict invest-; changing conditions."

Elect?!?

unit;
may

each

issues

for itself.

utility

25/94ths of

units

5/94ths

Gas

And,

expenses,

Medium-Grade

;

Corp.
orfering—Stockholders
fer

electric

Columbia

—

such

many

••

...

Business

John

Division of Civilian Supply of the
WPB; Douglas C. Townson, Divithere is a guaranteed schedule of sion of Industry Operations of the
redemption prices to protect the WPB, and T. L. Daniels, Materials

33%%.

not

may

Dr.

Orchard,| Office of Lend-Lease
Administration; Roland S. Vaile,

turn the invested principal but to
return
it with
an
accretion
of

When

Cincinnati,

•

Warfare;

A WPB

tion

re-

partment; W. B. Parker, Board of
Economic

other high-grade bonds.
ignored. Furthermore, many
"So our investment
suggestion
municipals i whose revenues tare
is this.
Buy War Bonds to the
derived from special funds, such
full extent of your
ability to forego
as
bridge, tunnel and highway
current income. And for that
por¬
tolls, - face grave
reduction ,..of
tion of your funds on which
you
these funds through war time dis¬

eventually succeed

locations. Recent erratic price ac¬

PANY

Union

there. The discount bonds which
-make up the bulk of public pur¬
chases are not only certain to re-

\//
<•
1942, to defer

UNION LIGHT, HEAT AND POWER COM-

culture Claude R.

stock

each agreed to purchase were listed
the ."Chronicle'^ of Feb. 26, 1942,- page

84R

military food supplies.
The new
committee, appointed by Donald
M. Nelson, Chairman of the
WPB,
is headed by Secretary of
Agri¬

safeguard not obtainable in

will

maximum

which

•

June 5 within the War Produc¬
tion Board to control the produc¬
tion and allocation of civilian and

Radio-Telegraph

Traffic In U. S. Closed,

established

was

Wickard. It will
Act, whereas others, both in
determine the direct and indirect
chip category,
military,
other
look cheap under
governmental,
any tax sched¬

v.:

■>

ments Committee

Public

Require¬

and out of the blue

-c

high-grade
and
the
fore¬
discussion of high-grades
shares
•'applies equally to them. They are,
;
Registration Statement No. 2-4940. Form
•v A2 (2-2-42)
; ;/•/:/*/.r'\>r:/;/:"zX.///1' howfever, subject to a special dan¬
Union. Electrie Co. of Missouri, on Feb
ger. Their tax immunity has been
9, 1942 filed an amendment to' its registhreatened, from
the * highest
{tration statement, naming the underwrit¬
places in our Government. So far
ers; 141 in all, who will publicly offer the
2,695,000 shares (no par) common stock,
Congress has withstood these at¬
all of which are owned by its parent comr
tacks but the danger that they
ceeds

Foods

for

SEC

its parent, The North Amer*

•

in relation to the
earnings that will be left to them
enue

{ lean Co., who will

high

nine-man

2,bu5,uoo shares common stock, no par
Address—315 N. Twelfth Blvd., St. Louis,

•

may

New War Foods Board
A

Federal
civilian and foreign
Communications
ule that has been
requirements
proposed. Many
Commission and a finding by that
I-\ (Continued from page 2199)
for < foods,
and
the amount by
of the rails seem
outstanding ex¬
first grade credit would mean a
which the domestic production or Commission that a particular cir¬
amples of this latter class because
drop in price of 20 to 25 points of
importation of foods, or the agri¬ cuit is necessary to meet a vital
their
freedom
from
excess
Business—This subsidiary of The North
for high-grade bonds of friodercultural
materials
from
which public need, the DCB will seek
profits imposts.
American Co. is engaged
primarily in the ately long-term and such a
drop,
foods are derived, shall be in¬ ways and means to meet that need.
transmission, distribution and sale of elect
in turn, would mean the loss of ^
trie energy .which it generates and'
^
creased or decreased to meet such
yyar Bonds
Transmission of private ; mes¬
pur*
chases from its
or
six years' interest.; So.
subsidiaries, serving the five
requirements.
sages
over
domestic' radio
! *'We • have
cir¬
city of St. Louis, Mo., and portion of 5
purposely left the
these bonds are a speculation on
In addition to
adjacent Missouri counties and. of 3 coundiscussion of one investment until
Secretary Wick¬ cuits," Mr. Fly explained, "can be
the course of interest rates and
ties in Missouri adjacent to the
company's
last. War Bonds are being bought ard, the other committee members heard and easily monitored outthis is entirely aside from any
Osage hydroelectric plant
side the United States.
In many
and will be
bought by patriotic and the agencies they represent
Underwriting—Dillon, Read & Co., .New
question of deterioration of qual?,
York, is named the principal underwriter.
Americans as their contribution are as follows: L. S. Stinebower, instances the nature of these pri¬
ity in individual issues. ./
:
Names of the other underwriters will be
vate messages can give informa¬
toward
victory, without special State Department; Brig. Gen. Carl
supplied by amendment
tion of value to the
f
enemy.':-The
regard to investment advantages. A. Hardigg, War Department; Rear
Municipal Bonds
;
Offering—The 2,695,000 shares of com¬
burden of possible
Admiral W. B. Young,
censorship has
pany's common stock are- outstanding :an<|
"The great bulk of municipals Nevertheless, the advantages are
Navy De¬
registration

;

Certain stocks, in-

cluding favored blue chips,

after the impact of the 1942 Rev¬

UNION ELECTRIC CO. OF MISSOURI
Union Electric Co. of Missouri filed

direction.

one

still

May 22, 1942, to defer

effective date

•

2207

and 'vdebentures

$62,000;

after that will

come

Mr. Nelson's intention to set up
Food Committee was noted in

decades. He is

May 28 issue, page 2034.

Piper, Jaffray To Admit
Grandin & Macfadden

War

chief

our

statistical

over

the

and
several

veteran of World

which

officer

served
of

the

S. Army and the American Ex¬
peditionary Force. He was made
a
full Colonel in October;* 1918,
when in France, and was called
back to active duty in October
1940 to serve in the dual capacity
of Director of the War Depart¬

MINNEAPOLIS, MINN.—Effec¬
tive June
18, Piper, Jaffray &
than usually nebulous today does
115
South
Seventh
General Motors, Great Western Hopwood,
not
mean
that investable funds
Street, members of the New York,
cannot be employed to advantage. Sugar,
International
Harvester, Minneapolis-St. Paul and Chicago ment Statistics branch and coor¬
It does mean, however, that some International
Nickel, Libby- Stock
Exchanges,
will
admit dinator of all War Department
of the 'old yardsticks must be
Charles L. Grandin, Jr. and Wil¬ statistics/ Last
July,
President
Owens-Ford,
Magma
Copper,
viewed with suspicion.
liam S. Macfadden to
North American,
partnership Roosevelt raised Mr. Ayres to the
Northern Pa¬
"There are opportunities under
in the firm. Both have been asso¬ rank of Brigadier General; .noted
I today's
conditions
both
in
the cific, Paramount Pictures, Stand¬ ciated
with Piper, Jaffray & Hop- in these columns of July 19, page
lbond field and the stock field. ard Oil (N.
J.) and Woolworth.
wood for some time.
333.
/•; z:^;:/!",/
drawn.

The

fact

that

(

Never Pa'd Less

Merrimac

the Second Floor at

170 BROADWAY

M.S.WIEN&CO.

ASSN.

Our Reporter

Reappointed to SEC
confirmed
of
Ganson

reappointment

League of

Associations

Y., on Jtiiie 9. the sessions con¬
tinuing through June 10, 11 and
12. ^Savings and Loan in a War

convention

the

from all parts
of the State to the number of over
four hundred were expected to
Delegates

The

attend.

announced

program

by the League's executive officer,
Zebulon V. Woodard, stressed the

part which savings and loan as¬
sociations can play in ading the
Government through financing of
housing, participation in

war

sale of War Bonds, and

Commissioner,
Federal
Administration, Wash¬
ington, D. C.; and Nugent Fallon,
President,
Federal Home Loan

guson,

Housing

Bank of New

York.

Purcell's election to the
SEC Chairmanship was referred
to in our Jan. 22 issue, page 326.
Mr.

by these

owned

formerly

companies prior to their con¬
with Scranton-Spring
Brook Water Service Company.
two

solidation

company's earnings have
characterized by stability

The
been

the past ten years,

been very

wide.

Baltimore Adv. Club

riod ended in 1941:

Securties

The

Exchange

1942

As far

operating revenues- $4,233

1,126

Maintenance

307

263

Depreciation

263

206*
155

117
145

Operating expenses

taxes

Income
Other

taxes

of the
Exchange for

New

Stock

York

"special offerings" as modified by
amendments filed with the Com¬
mission

May 11, 1942. The

SEC

announcement issued May 21 said:

$2,175

Operating income
Available for fixed

Total

charges-

$2,273

2,175

2,264
1,820

1,823

fixed charges

Balance

-—

Times charges

earned
46% ;

'■Taxes accrued at

352

444

1.24

1.19
no excess

profits

action makes
in the

changes

tax.

At March

31, 1942, gross prop¬

erty account was carried at $55,special offering plan of the New
082,000, and after depreciation re¬
York Stock Exchange, which was

serve of $5,764,000, the net figure
declared effective on
was 849,318,000.
Total funded debt
1942.
The principal
is $35,400,000, of which $18,500,000
changes made by the amended
represents
the
combined prior
plan relate to: the price at which
liens of Scranton Gas & Water
special offerings are permitted in
and Spring Brook
relation tq the current bid price ($11,000,000)
Water
Supply ($7,500,000), this
for the same security in the 'reg¬
amount being equivalent to a ratio
ular way'J market; suspension of
of debt to property of 52%. Mort¬
special ■ offerings for a limited
gage position of the junior Scran¬
period in the event a 'regular
ton-Spring Brook Water 5s, 1961
way' offering enters the market
and 1967, is therefore not particu¬
below 4be price of the special of¬
larly good; the senior liens, how¬
fering; allocation of securities spe¬
ever, appear to be well secured,
cially offered when buying orders
as stated previously.
for
such! securities exceed the

originally
Feb.
14,

the

amount* of

Other

The

in nature."

cludes

offering.

changes are technical

tion

company's
90

reservoirs

streams

Eagle Lock Co.
R. Hoe & Co.
COMMON

American Hair & Felt
Boston & Maine, 1st pfd.

HAY, FALES & CO.
Members New

71 Broadway,
Bell

York Stock Exchange

N. Y.BOwling Green 9-7030

Teletype

NY 1-61

storage

fed

property in¬
distribu¬

and
by

mountain

collecting water from over

well-timbered
drainage basins and yielding an
average of about 277,000,000 gal¬

800 square

lons

miles of

day.

Average daily con¬

sumption is about 84,000,000 gal¬
lons. Service is rendered to over

mains.,; The gas

gener¬

ating .plants have an installed
daily capacity of 3,850,000 cubic
feet,
which
compares
with an
average daily
production of 2,510,000 cubic feet in 1940.
The
seven

gate

gas

holders have an aggre¬

reserve

capacity of 2,300,000

in the weekly of¬

$250,000,000
will
provide
the
with
$150,000,000
of

Treasury
"new

money"

turities.

Secretary Morgenthau on June
raise

4 announced his intention to

offering

bill

the

$50,000,000

and said it would continue

that

Is being

the

Treasury

major

for an

also revealed

take place after

financing would
June 15.

The previous increase in the bill
offering was noted in our May 14

issue, page 1864.

to order.

since

week

each

$150,000,000 is used to meet ma¬

in Wall Street but also in Wash¬
ington.
The good points about it are that it would simplify
the Treasury's job of finding exactly the right maturity for all
banks for the buyers would have a choice of many maturities
and could pick as they wished.
It would simplify the banks'
portfolio job, too, for the maturity distribution would be made
...

it hasn't yet worked out all details
of its over-all financial policy, the Pfeffer plan has a good chance of
the Treasury admits

adoption in at least a modified form.
INSIDE THE

Suspended NYSE Member
Adjudicated Bankrupt
An announcement issued by

New

MARKET

the

Exchange June

Stock

York

says:

is to come shortly after the 15th of the
"The New York Stock Exchange
month.
Beginning June 10, the Treasury's weekly cash bill of¬ has been advised that W. E. Hutferings go up from $250,000,000 to $300,000,000, meaning the Treasury ton Miller, a member of the Ex¬
gets $150,000,000 new cash every week.5. . . The money is coming change, who was suspended 011
in—but still it's the banking system that's the main backlog. . . .
Jan. 8, 1941, by the Board of Gov¬
Short-terms coming this month, according to all preliminary re¬ ernors
pursuant to Section 3 of
ports.
Maybe as short as nine months, which would be disap¬ Article XII (now Article X) of
pointment to dealers and institutional investors looking for income. the Constitution, (for non-pay¬
Market obviously being readied for a long-term soon. .
ment of dues) was adjudicated a
Prices are firm, positions in good shape. . . . Nevertheless, the
bankrupt, effective June 5, 1942,
market has been duller in recent weeks than at almost any previous in
the
United
States
District
The June cash borrowing
.

time.

Virtually

trading.

Dealers just working on ways
Governments as widely as

they can help distribute future issues of

possible.
.
Market positions reported as exceedingly small. . . .
No getting away from it.
.
The days of booming, active, ex¬
citing and widely fluctuating Government prices are gone for a long
.

time to come.

Estimates

comihg fiscal
in

required'

bank deposits will

are

year.

reserves.

rise/ around

That would necessitate a

$30,000,000,000 this
$6,000,000,000 jump

Required reserves now total $10,000,000,000. . . . Aggregate re¬
serves are $12,467,000,000.
...
The excess, therefore, is only $2,-

500,000,000.
Which

seems

to indicate that reserve

Timing is becoming less important now

in mid¬
that the in¬

bulletin.

They, may

according to
be holding at least $50,000,-

by May of 1943.

The
following
gives
current
29,000 metered gas cus¬
tomers
are
served through 298 riarkets, the range during 1942, to¬
gether with present call prices:
miles of distribution mains.
1942 Range

104

101

—

of the Constitution."

The announcement further notes

that Mr. Miller has, done no Stock

Exchange
since

his

business of any kind
suspension on Jan. 8,

1941.

101

—

Spring Brook Water

107%

1967

4%s, 1958
5s, 1965

Accountant-Bookkeeper
former

Advertiser

New York Stock
would

cashier

from

keeper

104%—102%
110%—107

firms
serv¬

book¬

tax

work.

discuss
Box

Can
Will

matter.

S 26,

The

Chronicle, 25 Spruce
Street, New York, N. Y. j

103%
114%

and

part time basis.

address

Financial

97%

■I

Member

accountant

Please

97%

Over-

obtaining the

ices

for

Exchange firm

hear

the-Counter

Current Price

Scranton Gas & Water

103
103

5s 1961

Port Time

helpful
gladly call

sus¬

pension of Mr. Miller is now ef¬
fective under Articles X and XIII

Approximate

Present

Call Price

ISSUe

Br.

Accordingly, the

interested in

cubic feet;

Scranton-Spr.

Northern " District

the

for

Florida.

That

evitability of the action is obvious. ...
Banks held $25,000,000,000 of Governments in May,
the Treasury

requirements will have to

permit a $5,000,000,000 rise in the surplus. . .
would mean halving the requirements. . . .
First action on this should come before fall. . . . Maybe

be altered to

summer.

Court

3,900 000,000 and possibly
public fire hydrants through 1,289
of

$150,194,000.

fering of bills to $300,000,000 from

.In short,

makes sense and apparently it

Pfeffer plan

simi¬
10 in

June

indefinite period. He

127,000 water customers and

miles

depending

given consideration not only

Since

bills

issue

The increase

The

maturity of

was a

amount of

worked out by
»

price was accepted.)

low

There

considerable interest these

maturity goes, there seems

"The Commission's

effective" certain

for

•

of the amount bid for at

(27%

the Treasury sell a serial issue (the simi¬
larity between this idea and the usual thing in municipal finance is
obvious) maturing in equal amounts from one to 10 years. . . . Buy¬
ers Would be required to take one-tenth of their allotments in each
maturity, although as soon as the securities were issued, there would
be no restrictions on marketability of ail or part of the various serial

1,144

revenues

rate

the

Pfeffer's suggestion is that

$4,204

Gas

running around eight to 10 years or less,

days in the so-called "Pfeffer plan," a maturity plan
Delmont K. Pfeffer of, the National City Bank.
,

$3,271
932

revenues

above—which lead to

lar

of your community.

the needs

price—99.907, equiva¬
approximately .36*3%.

Average
lent

...

with the average

1941

$3,327
906

Water

Commission announces that it had
declared effective the plan

—

approximately .372%.

(3)If you agree with the banking authorities of the Nation that
maturity schedule may be spread out over the one to 15-year range

and

High — 99.925, equivalent rate
approximately .297%.
Low
99.906, equivalent rate

important price fluctuation is use¬

concentrate entirely on a maturity schedule

300,380,000

accepted

Range of accepted bids:

Corporations with some excess cash on hand will be
different type than the

institution.

your

loans.

(000)

Total

Modify New York Stock
Exchange Offering Plan

Total

less now—you may

TTIi

the conclusion that worry about

although

The fol¬
lowing shows some salient items
from the income account for the
twelve months ended March 31,
BALTIMORE, MD.-W. T. 1942, compared with the same pe¬

Bros. & Boyce,
has been elected for the fourth
consecutive year President of The
Advertising Club of Baltimore.

(2) If you can agree with the comments

(Continued from page 2194)
erties

never

of Stein

given certificates and short-terms of slightly
issues designed for banks.
...

margin of earnings over and
above fixed charge coverage has

Childs,

(1) In the over-all war financing policy now being developed in
Washington, maturity is receiving unprecedented emphasis. . .
.
Banks are being given and will be given securities of short-term
maturity.
Individuals will be given war bonds. . . . Insurance
companies and institutions of similar calibre will be given longterms.

over

Again Heads

25.

term on May

the

Childs

the

Abner H. Fer¬

Result Of Treasury

On "Governments"

(Continued from First Page)

in stress¬

of thrift to the
general public as a vital means
of
preventing inflation. Among
those
scheduled to address the
were

1-1397

ing the importance

Convention

Teletype

doing so, why must we in the United States constantly worry about
for a fivechanges in the interest rate level?
Particularly when we have
Secretary of the Treasury Mormember of the been told time and again that the Federal Reserve System and the
genthau announced on June 8 that
and Exchange Com¬
Treasury are doing and will do all within their power to keep rates the tenders for $300,000,000, or
mission.
Mr.
Purcell's
present
stabilized.
■
thereabouts, of 91-day Treasury
term expired on June 5. Mr. Pur¬
The length of this discussion indicates its importance, for once bills to be dated June 10 and to
cell, who became Chairman of
you have decided on the probable course of interest rates in the mature Sept 9, which were of¬
the SEC in January this year,
coming months, you may go on from there! ;£hd work out an intelli¬ fered on June 5, were opened on
was
appointed a member of the
gent war-time portfolio policy. , . .
June 8 at the Federal Reserve
Commission by President Roose¬
banks.
MATURITY SCHEDULE
velt on June 11, 1941, for the un¬
The details of this issue are as
expired portion of the term ending
Repeatedly in recent columns, the growing significance of ma¬ follows:
June 5, 1942.
The President re¬ turity and the declining significance of price fluctuation has been
Total applied for
$689,653,000
nominated
him for a five-year stressed.
The reasons are these.
.\r

term
Securities

year

theme.

HAnover 2-8780

St., N.Y.

New York

Purcell

opened its 55th Annual Conven¬
tion
at ' Saranac
Inn,
Saranac,

Economy," '

Dealers Ass'n

Members N. Y. Security
25 Broad

Underwriters and Distributors of Securities

The Senate on June 4
the

Loan

Mexican Bonds

F. KLEIN CO.

and

Preferred

5.60

South American Bonds

President

Purcell

League
Savings

Zinc

of Georgia Building, Atlanta, Georgia

Savings & Loan

The New York State

Bell Teletype: NY 1-626

FULTON COUNTY FEDERAL SAVINGS & LOAN

N. Y.

Wallower

Evans

Telephone: COrilandi 7-0762

Ground Floor Trust Co.

Co.

Panhandle Eastern Pipeline Co.

GEORGIA'S OLDEST FEDERAL
William M. Scurry,

Sharpe %
Mfg.

World's Fair 4s, 1941

U. S. GOVT.

Accounts Insured to $5,000 by Agency

Brown

the removal

announce

of bur offices io larger quarters
on

3%%

Current Rate

pleased lo

are

GOOD* RETURN ON SAVINGS

SAFETY PLUS

Thursday, June 11, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

2208

Full text of Commercial and Financial Chronicle : June 11, 1942, Vol. 155, No. 4080, Section 1

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